[Congressional Record (Bound Edition), Volume 145 (1999), Part 19]
[House]
[Pages 26851-26855]
[From the U.S. Government Publishing Office, www.gpo.gov]



                   STATISTICAL EFFICIENCY ACT OF 1999

  Mr. HORN. Mr. Speaker, I move to suspend the rules and pass the bill 
(H.R. 2885) to provide uniform safeguards for the confidentiality of 
information acquired for exclusively statistical purposes, and to 
improve the efficiency and quality of the Federal statistics and 
Federal statistical programs by permitting limited sharing of records 
among designated agencies for statistical purposes under strong 
safeguards, as amended.
  The Clerk read as follows:

                               H.R. 2885

       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 ``Statistical Efficiency Act 
     of 1999''.

     SEC. 2. DEFINITIONS.

       As used in this Act:
       (1) The term ``agency'' means any entity that falls within 
     the definition of the term ``executive agency'' as defined in 
     section 102 of title 31, United States Code, or ``agency'', 
     as defined in section 3502 of title 44, United States Code.
       (2) The term ``agent'' means a person who--
       (A) is designated by a Statistical Data Center (as 
     designated in section 3) to perform exclusively statistical 
     activities authorized by law under the supervision or control 
     of an officer or employee of that Statistical Data Center; 
     and
       (B) has agreed in writing to comply with all provisions of 
     law that affect information acquired by that Statistical Data 
     Center.
       (3) The term ``identifiable form'' means any representation 
     of information that permits information concerning individual 
     subjects to be reasonably inferred by either direct or 
     indirect means.
       (4) The term ``nonstatistical purpose'' means any purpose 
     that is not a statistical purpose, and includes any 
     administrative, regulatory, law enforcement, adjudicatory, or 
     other purpose that affects the rights, privileges, or 
     benefits of a particular identifiable respondent.
       (5) The term ``respondent'' means a person who, or 
     organization that, is requested or required to supply 
     information to an agency, is the subject of information 
     requested or required to be supplied to an agency, or who 
     provides that information to an agency.
       (6) The term ``statistical activities''--
       (A) means the collection, compilation, processing, or 
     analysis of data for the purpose of describing or making 
     estimates concerning the whole, or relevant groups or 
     components within, the economy, society, or natural 
     environment; and
       (B) includes the development of methods or resources that 
     support those activities, such as measurement methods, 
     models, statistical classifications, or sampling frames.
       (7) The term ``statistical purpose''--
       (A) means the description, estimation, or analysis of the 
     characteristics of groups without regard to the identities of 
     individuals or organizations that comprise such groups; and
       (B) includes the development, implementation, or 
     maintenance of methods, technical or administrative 
     procedures, or information resources that support such 
     purposes.

     SEC. 3. DESIGNATION OF STATISTICAL DATA CENTERS.

       (a) In General.--Each of the following is hereby designated 
     as a Statistical Data Center:
       (1) The Bureau of Economic Analysis in the Department of 
     Commerce.
       (2) The Bureau of the Census in the Department of Commerce.
       (3) The Bureau of Labor Statistics in the Department of 
     Labor.
       (4) The National Agricultural Statistics Service in the 
     Department of Agriculture.
       (5) The National Center for Education Statistics in the 
     Department of Education.
       (6) The National Center for Health Statistics in the 
     Department of Health and Human Services.
       (7) The Energy Consumption Division of the Energy 
     Information Administration in the Department of Energy.
       (8) The Division of Science Resources Studies in the 
     National Science Foundation.
       (b) Designation.--In the case of a reorganization that 
     eliminates, or substantially alters the mission or functions 
     of, an agency or agency component listed in subsection (a), 
     the Director of the Office of Management and Budget, after 
     consultation with the head of the agency proposing the 
     reorganization, may designate an agency or agency component 
     that shall serve as a successor Statistical Data Center under 
     the terms of this Act, if the Director determines that--
       (1) the primary activities of the proposed Statistical Data 
     Center are statistical activities specifically authorized by 
     law;
       (2) the proposed Statistical Data Center would participate 
     in data sharing activities that significantly improve Federal 
     statistical programs or products;
       (3) the proposed Statistical Data Center has demonstrated 
     its capability to protect the individual confidentiality of 
     any shared data; and
       (4) the laws that apply to the proposed Statistical Data 
     Center are not inconsistent with this Act.
       (c) Notice and Comment.--The head of an agency seeking 
     designation as a successor Statistical Data Center under this 
     section shall, after consultation with the Director of the 
     Office of Management and Budget, provide public notice and an 
     opportunity to comment on the consequences of such 
     designation and on those determinations upon which the 
     designation is proposed to be based.
       (d) Prohibition Against Increase in Number of Centers.--No 
     action taken under this section shall increase the number of 
     Statistical Data Centers authorized by this Act.

     SEC. 4. STATISTICAL DATA CENTER RESPONSIBILITIES.

       The Statistical Data Centers designated in section 3 
     shall--

[[Page 26852]]

       (1) identify opportunities to eliminate duplication and 
     otherwise reduce reporting burden and cost imposed on the 
     public by sharing information for exclusively statistical 
     purposes;
       (2) enter into joint statistical projects to improve the 
     quality and reduce the cost of statistical programs;
       (3) safeguard the confidentiality of individually 
     identifiable information acquired for statistical purposes by 
     assuring its physical security and by controlling access to, 
     and uses made of, such information; and
       (4) respect the rights and privileges of the public by 
     observing and promoting fair information practices.

     SEC. 5. LIMITATIONS ON USE AND DISCLOSURE OF DATA AND 
                   INFORMATION BY STATISTICAL DATA CENTERS.

       (a) Use of Statistical Data or Information.--Data or 
     information acquired by a Statistical Data Center for 
     exclusively statistical purposes shall be used by the Center 
     only for statistical purposes.
       (b) Disclosure of Statistical Data or Information.--Data or 
     information acquired for exclusively statistical purposes 
     shall not be disclosed in identifiable form, for any purpose 
     other than a statistical purpose, without the informed 
     consent of the respondent.
       (c) Rule for Use of Data or Information for Nonstatistical 
     Purposes.--A Statistical Data Center shall clearly 
     distinguish any data or information collected for 
     nonstatistical purposes (as authorized by law) by the 
     Statistical Data Center by a rule that provides that the 
     respondent supplying the data or information is fully 
     informed, before the data or information is collected, that 
     the data or information will be used for nonstatistical 
     purposes.

     SEC. 6. DISCLOSURE OF DATA OR INFORMATION BY AGENCIES TO 
                   STATISTICAL DATA CENTERS.

       (a) Agencies That May Disclose Data or Information to a 
     Statistical Data Center.--Subject to subsection (b), any 
     Federal agency may disclose data or information to one or 
     more Statistical Data Centers for exclusively statistical 
     purposes.
       (b) Limitations on Disclosure.--Data or information may be 
     disclosed by an agency to one or more Statistical Data 
     Centers under subsection (a) only if--
       (1) the data or information are to be used exclusively for 
     statistical purposes by the Statistical Data Center or 
     Centers;
       (2) the disclosure of, and proposed use of, the data or 
     information by the Statistical Data Center is not 
     inconsistent with any provisions of law or Executive order 
     that explicitly limit the statistical purposes for which such 
     data or information may be used;
       (3) the disclosure is not prohibited by law or Executive 
     order in the interest of national security;
       (4) the disclosure is made under the terms of a written 
     agreement between the Statistical Data Center or Centers and 
     the agency supplying the data or information that specifies--
       (A) the data or information to be disclosed;
       (B) the purposes for which the data or information are to 
     be used; and
       (C) appropriate security procedures to safeguard the 
     confidentiality of the data or information; and
       (5) the data or information is not disclosed by that Center 
     in identifiable form (except in a case in which the data or 
     information was collected directly by a party to the 
     agreement referred to in subsection (b)(4), and the agreement 
     specifies that the data or information may be so disclosed to 
     another party to the agreement for exclusively statistical 
     purposes).
       (c) Notice.--Whenever a written agreement authorized under 
     subsection (b)(4) concerns data that respondents were 
     required by law to report and the agreement contains terms 
     that could not reasonably have been anticipated by 
     respondents who provided the data that will be disclosed, or 
     upon the initiative of any party to such an agreement, or 
     whenever ordered by the Director of the Office of Management 
     and Budget, the terms of such agreement shall be described in 
     a public notice issued by the agency that intends to disclose 
     the data. Such notice shall allow a minimum of 60 days for 
     public comment before such agreement shall take effect. The 
     Director shall be fully apprised of any issues raised by the 
     public and may suspend the effect of such an agreement to 
     permit modifications responsive to public comments.
       (d) Applicability of Other Laws.--(1) The disclosure of 
     data or information by an agency to a Statistical Data Center 
     under this section shall in no way alter the responsibility 
     of that agency under other statutes (including the Freedom of 
     Information Act and the Privacy Act) with respect to the 
     disclosure or withholding of such information by that agency.
       (2) If data or information obtained by an agency is 
     disclosed to another agency pursuant to this section, all 
     provisions of law (including penalties) that relate to the 
     unlawful disclosure of the data or information apply to the 
     officers, employees, or agents of the agency to which the 
     data or information is disclosed to the same extent and in 
     the same manner as the provisions apply to the officers and 
     employees of the agency which originally obtained the 
     information.
       (3) The officers, employees, and agents of the agency to 
     which the data or information is disclosed, in addition, 
     shall be subject to the same provisions of law, including 
     penalties, relating to the unlawful disclosure of information 
     that would apply to officers and employees of that agency, if 
     the information had been collected directly by that agency.

     SEC. 7. COORDINATION AND OVERSIGHT BY OFFICE OF MANAGEMENT 
                   AND BUDGET.

       (a) In General.--The Director of the Office of Management 
     and Budget shall coordinate and oversee the confidentiality 
     and disclosure policies established by this Act.
       (b) Report of Disclosure Agreements.--(1) The head of a 
     Statistical Data Center shall report to the Office of 
     Management and Budget--
       (A) each disclosure agreement entered into pursuant to 
     section 6(b)(4);
       (B) the results of any review of information security 
     undertaken at the request of the Office of Management and 
     Budget; and
       (C) the results of any similar review undertaken on the 
     initiative of the Statistical Data Center or an agency 
     disclosing data or information to a Statistical Data Center.
       (2) The Director of the Office of Management and Budget 
     shall include a summary of all reports submitted to the 
     Director under this subsection and any actions taken by the 
     Director to advance the purposes of this Act in the annual 
     report to the Congress on statistical programs submitted in 
     accordance with section 3504(e)(2) of title 44, United States 
     Code.
       (c) Review and Approval of Rules.--The Director of the 
     Office of Management and Budget shall review and approve any 
     rules proposed pursuant to this Act for consistency with this 
     Act and chapter 35 of title 44, United States Code.

     SEC. 8. IMPLEMENTING REGULATIONS.

       (a) In General.--Subject to subsections (b) and (c), the 
     Director of the Office of Management and Budget, or the head 
     of a Statistical Data Center or of an agency providing 
     information to a Center, may promulgate such rules as may be 
     necessary to implement this Act.
       (b) Consistency.--The Director of the Office of Management 
     and Budget shall promulgate rules or provide such other 
     guidance as may be needed to ensure consistent interpretation 
     of this Act by the affected agencies.
       (c) Agency Rules.--Rules governing disclosures of 
     information authorized by this Act shall be promulgated by 
     the agency that originally collected the information, subject 
     to the review and approval required under this Act.

     SEC. 9. EFFECT ON OTHER LAWS.

       (a) Title 44 U.S.C.--This Act, including the amendments 
     made by this Act, does not diminish the authority under 
     section 3510 of title 44, United States Code, of the Director 
     of the Office of Management and Budget to direct, and of an 
     agency to make, disclosures that are not inconsistent with 
     any applicable law.
       (b) Exemption From Freedom of Information Act.--Data or 
     information acquired for exclusively statistical purposes as 
     provided in section 5 is exempt from mandatory disclosure 
     under section 552 of title 5, United States Code, pursuant to 
     section 552(b)(3) of such title.
       (c) Preemption of State Law.--Nothing in this Act shall 
     preempt applicable State law regarding the confidentiality of 
     data collected by the States.

     SEC. 10. CONFORMING AND PROPOSED CHANGES IN LAW.

       (a) Department of Commerce.--(1) Section 1 of the Act of 
     January 27, 1938 (15 U.S.C 176a) is amended by striking 
     ``The'' and inserting ``Except as provided in the Statistical 
     Efficiency Act of 1999, the''.
       (2)(A) Chapter 10 of title 13, United States Code, is 
     amended by adding after section 401 the following:

     ``Sec. 402. Exchange of census information with Statistical 
       Data Centers

       ``The Bureau of the Census is authorized to provide data 
     collected under this title to Statistical Data Centers named 
     in the Statistical Efficiency Act of 1999, or their 
     successors designated under the terms of that Act.''.
       (B) The table of sections for chapter 10 of title 13, 
     United States Code, is amended by adding after the item 
     relating to section 401 the following:

``402. Exchange of census information with Statistical Data Centers.''.

       (b) Department of Energy.--(1) Section 205 of the 
     Department of Energy Organization Act (Public Law 95-91; 42 
     U.S.C. 7135) is amended by adding after subsection (l) the 
     following new subsection:
       ``(m)(1)(A) The Administrator shall designate an 
     organizational unit to conduct statistical activities 
     pertaining to energy end use consumption information. Using 
     procedures authorized by the Statistical Efficiency Act of 
     1999, the Administrator shall ensure the security, integrity, 
     and confidentiality of the information that has been 
     submitted in identifiable form and supplied exclusively for 
     statistical purposes either directly to the Energy 
     Information Administration or by other Government agencies.
       ``(B) To carry out this section, the Administrator shall 
     establish procedures for the disclosure of these data to 
     Statistical Data Centers for statistical purposes only 
     consistent with chapter 35 of title 44, United States Code 
     (commonly referred to as the `Paperwork Reduction Act'), and 
     the Statistical Efficiency Act of 1999.
       ``(2)(A) A person may not publish, cause to be published, 
     or otherwise communicate, statistical information designated 
     in paragraph (1) in a manner that identifies any respondent.
       ``(B) A person may not use statistical information 
     designated in paragraph (1) for a nonstatistical purpose.
       ``(C) The identity of a respondent who supplies, or is the 
     subject of, information collected for statistical purposes--
       ``(i) may not be disclosed through any process, including 
     disclosure through legal process, unless the respondent 
     consents in writing;

[[Page 26853]]

       ``(ii) may not be disclosed to the public, unless 
     information has been transformed into a statistical or 
     aggregate form that does not allow the identification of the 
     respondent who supplied the information or who is the subject 
     of that information; and
       ``(iii) may not, without the written consent of the 
     respondent, be admitted as evidence or used for any purpose 
     in an action, suit, or other judicial or administrative 
     proceeding.
       ``(D) Any person who violates subparagraphs (A), (B), or 
     (C), upon conviction, shall be fined under title 18, United 
     States Code, imprisoned not more than 1 year, or both.
       ``(E) For purposes of this subsection:
       ``(i) The term `person' has the meaning given the term in 
     section 1 of title 1, United States Code, but also includes a 
     local, State, or Federal entity or officer or employee of a 
     local, State, or Federal entity.
       ``(ii) The terms `statistical activities', `identifiable 
     form', `statistical purpose', `nonstatistical purpose', and 
     `respondent' have the meaning given those terms in section 2 
     of the Statistical Efficiency Act of 1999.
       ``(3) Statistical information designated in paragraph (1) 
     is exempt from disclosure under sections 205(f) and 407 of 
     this Act and sections 12, 20, and 59 of the Federal Energy 
     Administration Act of 1974, or any other law which requires 
     disclosure of that information.''.
       (2) Section 205(f) of the Department of Energy Organization 
     Act (42 U.S.C. 7135) is amended by inserting ``, excluding 
     information designated solely for statistical purposes under 
     subsection (m)(1),'' after ``analysis''.
       (3) Section 407(a) of the Department of Energy Organization 
     Act (42 U.S.C. 7177(a)) is amended by inserting ``, excluding 
     information designated solely for statistical purposes under 
     section 205(m)(1),'' after ``information''.
       (4) The Federal Energy Administration Act of 1974 (Public 
     Law 93-275) is amended--
       (A) in section 12 (15 U.S.C. 771), by adding after 
     subsection (f) the following new subsection:
       ``(g) This section does not apply to information designated 
     solely for statistical purposes under section 205(m)(1) of 
     the Department of Energy Organization Act (Public Law 95-
     91).'';
       (B) in section 20(a)(3) (15 U.S.C. 779(a)(3)), by inserting 
     ``, excluding information designated solely for statistical 
     purposes under section 205(m)(1) of the Department of Energy 
     Organization Act (42 U.S.C. 7135)'' after ``information''; 
     and
       (C) in the first sentence of section 59 (15 U.S.C. 790h), 
     by inserting ``, excluding information designated solely for 
     statistical purposes under section 205(m)(1) of the 
     Department of Energy Organization Act (42 U.S.C 7135)'' after 
     ``information''.
       (c) Department of Health and Human Services.--Section 306 
     of the Public Health Service Act (42 U.S.C. 242k) is amended 
     by adding at the end the following new subsection:
       ``(o) Sharing of Identifying Information for Statistical 
     Purposes.--
       ``(1) In general.--The Director may, subject to the 
     provisions of paragraph (2), designate as an agent of the 
     Center (within the meaning of section 2 of the Statistical 
     Efficiency Act of 1999) an individual--
       ``(A) who is not otherwise an employee, official, or agent 
     of the Center; and
       ``(B) who enters into a written agreement with the Director 
     specifying terms and conditions for sharing of statistical 
     information.
       ``(2) Effect of designation.--An individual designated as 
     an agent of the Center pursuant to paragraph (1) shall be 
     subject to all restrictions on the use and disclosure of 
     statistical information obtained by the individual under the 
     agreement specified in paragraph (1)(B), and to all civil and 
     criminal penalties applicable to violations of such 
     restrictions, including penalties under section 1905 of title 
     18, United States Code, that would apply to the individual if 
     an employee of the Center.''.
       (d) Department of Labor.--The Commissioner of Labor 
     Statistics is authorized to designate agents, as defined in 
     section 2.
       (e) National Science Foundation.--Section 14 of the 
     National Science Foundation Act of 1950 (42 U.S.C. 1873) is 
     amended--
       (1) by amending subsection (i) to read as follows:
       ``(i) Information supplied to the Foundation or its 
     contractor in survey forms, questionnaires, or similar 
     instruments for purposes of section 3(a)(5) or (6) by an 
     individual, by an industrial or commercial organization, or 
     by an educational or academic institution that has received a 
     pledge of confidentiality from the Foundation, may not be 
     disclosed to the public unless the information has been 
     transformed into statistical or abstract formats that do not 
     allow the identification of the supplier. Such information 
     shall be used in identifiable form only for statistical 
     purposes as defined in the Statistical Efficiency Act of 
     1999. The names of individuals and organizations supplying 
     such information may not be disclosed to the public.'';
       (2) by adding the following new subsection after subsection 
     (i):
       ``(j) In support of functions authorized by section 3(a)(5) 
     or (6), the Foundation may designate, at its discretion, 
     authorized persons, including employees of Federal, State, or 
     local agencies (including local educational agencies) and 
     employees of private organizations who may have access, for 
     exclusively statistical purposes as defined in the 
     Statistical Efficiency Act of 1999, to identifiable 
     information collected pursuant to section 3(a)(5) or (6). No 
     such person may--
       ``(1) publish information collected under section 3(a)(5) 
     or (6) in such a manner that either an individual, an 
     industrial or commercial organization, or an educational or 
     academic institution that has received a pledge of 
     confidentiality from the Foundation, can be specifically 
     identified;
       ``(2) permit anyone other than individuals authorized by 
     the Foundation to examine in identifiable form data relating 
     to an individual, to an industrial or commercial 
     organization, or to an educational or academic institution 
     that has received a pledge of confidentiality from the 
     Foundation; or
       ``(3) knowingly and willfully request or obtain any 
     confidential information described in subsection (i) from the 
     Foundation under false pretenses.

     Any person who violates these restrictions shall be fined not 
     more than $10,000, or imprisoned not more than five years, or 
     both.''.
       (f) Disclosure Penalties.--Section 1905 of title 18, United 
     States Code, is amended by inserting ``, or agent of a 
     Statistical Data Center as defined in the Statistical 
     Efficiency Act of 1999'' after ``thereof'' in the first two 
     places such term appears.
       (g) Proposed Changes in Law.--Not later than the date that 
     is 90 days after the date of the enactment of this Act, the 
     President shall submit to Congress a description of any 
     additional conforming changes in law necessary to carry out 
     the provisions of this Act.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
California (Mr. Horn) and the gentleman from Texas (Mr. Turner) each 
will control 20 minutes.
  The Chair recognizes the gentleman from California (Mr. Horn).


                             General Leave

  Mr. HORN. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days within which to revise and extend their remarks 
on H.R. 2885.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from California?
  There was no objection.
  Mr. HORN. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, the Federal statistical structure is currently an 
assortment of 70 different entities located within 12 cabinet 
departments within the executive branch of the Federal Government. This 
fragmented structure compromises the quality of statistical data and 
wastes limited government resources. It also imposes undue burdens on 
those who supply information to the Federal Government for statistical 
purposes.
  Federal statistical agencies currently operate under a patchwork of 
laws and regulations that prevent them from sharing the statistical 
information they collect. The Bureau of the Census, for example, 
compiles a list of business establishments. The Bureau of Labor 
Statistics must compile a similar list because the two agencies cannot 
share this information.
  Similarly, the Department of Agriculture must compile its own list of 
farms because it does not have access to the list of farms compiled by 
the Bureau of the Census.
  H.R. 2885, the ``Statistical Efficiency Act of 1999,'' would permit 
these agencies to share statistical data and, at the same time, would 
establish a uniform standard to protect the confidentiality of 
information acquired for statistical purposes.
  The bill designates eight Federal agencies as statistical data 
centers. These agencies were selected because their primary mission is 
to collect, produce, and disseminate statistical information. Federal 
agencies would be allowed to disclose data or information to these 
centers exclusively for statistical purposes.
  The bill contains a number of provisions designed to protect the 
confidentiality of the information collected. Currently, Federal 
statistical agencies operate under a variety of confidentiality laws 
ranging from highly restrictive to virtually nonexistent. This bill 
would create a uniform set of confidentiality protections designed to 
safeguard statistical information from unauthorized disclosure. Under 
the bill, data or information acquired for statistical purposes could 
only be used for statistical purposes.
  The disclosure of information to a statistical data center must be 
consistent with existing laws and must be made under the terms of a 
written agreement between the agencies supplying the information and 
the statistical data center. The agreement must

[[Page 26854]]

identify the data to be disclosed, the purpose for disclosure, and the 
procedures to be taken to safeguard the confidentiality of the 
information.
  The bill prohibits the disclosure of data in identifiable form for 
nonstatistical purposes without the informed consent of the entity or 
individual who supplied the information. The bill also establishes 
criminal penalties for unlawful disclosure of this information.
  Over the past two Congresses, the Subcommittee on Government 
Management, Information, and Technology has held three hearings 
focusing on proposals to improve the efficiency of the Federal 
statistical system, including the proposal before the House today.
  Witnesses at these hearings included representatives from the 
administration, current and former heads of Federal statistical 
agencies, representatives of the General Accounting Office, and members 
from the academic and research communities. All of these witnesses 
agreed that both the quality and efficiency of the Federal statistical 
system would be improved by authorizing designated agencies to share 
statistical information under uniform confidentiality protections.
  This legislation, which is similar to legislation proposed by the 
administration, has broad bipartisan support. Its benefits are equally 
broad.
  Mr. Speaker, I urge my colleagues to support this important 
bipartisan measure, and I reserve the balance of my time.
  Mr. TURNER. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in support of this legislation and I urge its 
adoption.
  First I want to commend the gentleman from California (Chairman Horn) 
and the gentleman from California (Mr. Waxman), the ranking member, 
whose joint work has allowed us to bring this bill to the floor.
  We all understand that our Government collects all kind of 
information. Some would say our government collects too much 
information. But the truth is much of this information that is 
collected is used to make very important policy decisions both in the 
agencies and on the floor of this House. It is important that this 
information be accurate and that it be readily available.
  Yet, today we have no uniform system for the collection of Federal 
statistics. Eleven major agencies and between 50 and 60 minor agencies 
spend over $2 billion every year collecting data with no uniform 
standards to assure either the accuracy or to protect the privacy and 
confidentiality of that information.
  Some agencies, like the Bureau of the Census, collect information and 
they hold that information in confidence and that is mandated by 
current legislative authority. But other agencies, like the Bureau of 
Labor Statistics, have a strong tradition of protecting the 
confidentiality of data but they have no legislative authority to 
support that practice.
  The ``Statistical Efficiency Act of 1999'' accomplishes two 
objectives. First of all, it establishes a uniform legislative 
authority for the protection of information collected for statistical 
purposes. Second, the legislation establishes a procedure to allow 
agencies to share information one with the other.
  This legislation will improve the efficiency of data collection and 
it will reduce the burden on individuals and businesses of responding 
to the mandates of various agencies for essentially the same 
information.
  The first step this bill takes in facilitating data sharing among 
agencies is to assure the privacy and confidentiality of the 
information collected. This is accomplished by establishing the basic 
principle that all data collected for statistical purposes cannot be 
used for any other purpose.
  For example, information collected for statistical purposes cannot be 
used for the enforcement of regulations or laws. This firewall between 
statistical purposes and regulatory enforcement is essential in 
obtaining the cooperation of businesses in reporting financial 
information.
  The second step in the process laid out in this bill is to designate 
eight agencies involved in the collection of statistics as statistical 
data centers to facilitate data sharing. Under the terms of the bills, 
these agencies can establish written agreements for passing 
individually identifiable information between one another to improve 
the efficiency of the statistical activities. In addition, these eight 
agencies can facilitate data sharing among other agencies, again 
through written agreement.
  I would like to note at this point that it is the intent of Congress 
in defining the term ``agent'' in this bill to give agencies the 
authority to swear in individuals who are not employees of the Federal 
Government as agents to facilitate data sharing. This will allow 
agencies like the Bureau of Labor Statistics to continue their long-
standing relationship with State government for the collection of labor 
market statistics.
  In addition, it will allow agencies to draw on expertise in the 
private sector for specific projects. These agents will, of course, be 
subject to the same requirements to protect the confidentiality of data 
as Federal employees of the agencies involved.
  This bill also requires statistical data centers to identify ways to 
reduce costs and improve efficiency and quality in the Federal 
statistical system. The bill charges the Director of the Office of 
Management and Budget with the responsibility for overseeing the 
confidentiality and data sharing policies of the act.

                              {time}  1500

  Finally, the bill establishes penalties for improper disclosure of 
information collected for statistical purposes.
  H.R. 2885 is strongly supported, as the gentleman from California 
(Mr. Horn) stated, by the administration, and this legislation 
represents an important step forward in improving the efficiency and 
quality of data collection. I urge its adoption by this House.
  Mr. Speaker, I reserve the balance of my time.
  Mr. HORN. Mr. Speaker, I yield myself such time as I may consume.
  Since my colleague who has been so helpful on this legislation 
mentioned the administration's statement of policy, I would like to 
file that Statement of Administration Policy at this point in the 
Record.
  Briefly it says, ``The Administration strongly supports House passage 
of H.R. 2885. The bill will enhance the confidential treatment of 
information provided to Federal statistical agencies and facilitate the 
sharing of information among those agencies for statistical purposes.''
  I would also like to submit for the Record the estimate of the 
Congressional Budget Office on H.R. 2885 that, in essence, sums up: it 
is not a problem. CBO ``estimates that neither the receipts nor the 
spending would exceed $500,000 in any one year.''

                   Statement of Administration Policy


   h.r. 2885--statistical efficiency act--(horn (r) california and 6 
                              cosponsors)

       The Administration strongly supports House passage of H.R. 
     2885. The bill will enhance the confidential treatment of 
     information provided to Federal statistical agencies and 
     facilitate the sharing of information among those agencies 
     for statistical purposes.

                           *   *   *   *   *

                                                    U.S. Congress,


                                  Congressional Budget Office,

                                 Washington, DC, October 22, 1999.
     Hon. Dan Burton,
     Chairman, Committee on Government Reform, House of 
         Representatives, Washington, DC.
       Dear Mr. Chairman: The Congressional Budget Office has 
     prepared the enclosed cost estimates for H.R. 2885, the 
     Statistical Efficiency Act of 1999.
       If you wish further details on this estimate, we will be 
     pleased to provide them. The CBO staff contact is John R. 
     Righter.
           Sincerely,
                                                 Barry B. Anderson
                                             (For Dan L. Crippen).
     H.R. 2885--Statistical Efficiency Act of 1999
       H.R. 2885 would designate eight bureaus and offices as 
     statistical data centers: the Bureau of Economic Analysis, 
     the Bureau of the Census, the Bureau of Labor Statistics 
     (BLS), the National Agricultural Statistics Service, the 
     National Center for Education Statistics, the National Health 
     Center for Health Statistics, the Energy Consumption Division 
     in the Department of Energy, and the Division of Science 
     Resources Studies in the National Science Foundation. 
     Together,

[[Page 26855]]

     these agencies received appropriations of about $2.1 billion 
     in 1999. Subject to certain confidentiality procedures, the 
     bill would allow the centers to share statistical data, 
     eliminate duplicate reporting requirements, and enter into 
     joint projects to improve the quality and lower the cost of 
     statistical programs. In addition, the bill would allow other 
     federal agencies to share data with the eight centers for 
     purely statistical purposes. In general, under current law, 
     an agency that collects data is not allowed to share the 
     information with another agency.
       H.R. 2885 could lower the government's costs to collect 
     statistical data if its results in the eight centers pooling 
     resources and eliminating duplicate efforts. Although it is 
     uncertain how much agencies would share resources and data 
     under H.R. 2885, based on information from the Office of 
     Information and Regulatory Affairs in the Office of 
     Management and Budget (OMB), CBO estimates that implementing 
     the bill would reduce information collection costs by about 
     $2 million a year. Any such savings would depend on the 
     amounts provided to these agencies in appropriations acts. In 
     addition, by allowing agencies to share and compare data, the 
     bill also could improve the quality of federal statistics, 
     but CBO has no basis for estimating the budgetary impact of 
     such improvements. Finally, subject to the availability of 
     appropriated funds, CBO estimates that the bill would cost 
     CBO less than $500,000 annually to write regulations and 
     oversee the bill's implementation.
       Enacting H.R. 2885 would result in the collection of 
     additional criminal fines, which affect both governmental 
     receipts and direct spending, pay-as-you-go procedures would 
     apply. CBO estimates that neither the receipts nor the 
     spending would exceed $500,000 in any one year. H.R. 2885 
     contains no intergovernmental or private-sector mandates as 
     defined in the Unfunded Mandates Reform Act and would not 
     affect the budgets of state, local, or tribal governments.
       The CBO staff contact is John R. Righter. This estimate was 
     approved by Peter H. Fontaine, Deputy Assistant Director for 
     Budget Analysis.

  Mr. Speaker, I reserve the balance of my time.
  Mr. TURNER. Mr. Speaker, I have no requests for time, and I yield 
back the balance of my time.
  Mr. HORN. I urge the adoption, Mr. Speaker, of this measure and hope 
everybody will support it.
  Mr. Speaker, I have no requests for time, and I yield back the 
balance of my time.
  The SPEAKER pro tempore (Mr. Gibbons). The question is on the motion 
offered by the gentleman from California (Mr. Horn) that the House 
suspend the rules and pass the bill, H.R. 2885, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

                          ____________________