[Congressional Record (Bound Edition), Volume 146 (2000), Part 14]
[House]
[Pages 20311-20321]
[From the U.S. Government Publishing Office, www.gpo.gov]



                         PRIVACY COMMISSION ACT

  Mr. HORN. Mr. Speaker, I move to suspend the rules and pass the bill 
(H.R. 4049) to establish the Commission for the Comprehensive Study of 
Privacy Protection, as amended.
  The Clerk read as follows:

                               H.R. 4049

       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.

       The 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) Commercial entities are increasingly aware that 
     consumers expect them to adopt privacy policies and take all 
     appropriate steps to protect the personal information of 
     consumers.
       (3) There is a growing concern about the confidentiality of 
     medical records, because there are inadequate Federal 
     guidelines and a patchwork of confusing State and local rules 
     regarding privacy protection for individually identifiable 
     patient information.
       (4) In light of recent changes in financial services laws 
     allowing for increased sharing of information between 
     traditional financial institutions and insurance entities, a 
     coordinated and comprehensive review is necessary regarding 
     the protections of personal data compiled by the health care, 
     insurance, and financial services industries.
       (5) The use of Social Security numbers has expanded beyond 
     the uses originally intended.
       (6) Use of the Internet has increased at astounding rates, 
     with approximately 5 million current Internet sites and 64 
     million regular Internet users each month in the United 
     States alone.
       (7) Financial transactions over the Internet have increased 
     at an astounding rate, with 17 million American households 
     spending $20 billion shopping on the Internet last year.
       (8) Use of the Internet as a medium for commercial 
     activities will continue to grow, and it is estimated that by 
     the end of 2000, 56 percent of the companies in the United 
     States will sell their products on the Internet.
       (9) There have been reports of surreptitious collection of 
     consumer data by Internet marketers and questionable 
     distribution of personal information by on-line companies.
       (10) In 1999, the Federal Trade Commission found that 87 
     percent of Internet sites provided some form of privacy 
     notice, which represented an increase from 15 percent in 
     1998.
       (11) The United States is the leading economic and social 
     force in the global information economy, largely because of a 
     favorable regulatory climate and the free flow of 
     information. It is important for the United States to 
     continue that leadership. As nations and governing bodies 
     around the world begin to establish privacy standards, these 
     standards will directly affect the United States.
       (12) 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.
       (13) This Act shall not be construed to prohibit the 
     enactment of legislation on privacy issues by the Congress 
     during the existence of the Commission. It is the 
     responsibility of the Congress to act to protect the privacy 
     of individuals, including individuals' medical and financial 
     information. Various committees of the 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 the 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, including personal information collected for a 
     decennial census, and such personal information as a driver's 
     license number.
       (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.
       (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.--

[[Page 20312]]

       (1) In general.--The Commission shall conduct at least 2 
     field hearings in each of the 5 geographical regions of the 
     United States.
       (2) Boundaries.--For purposes of this subsection, the 
     Commission may determine the boundaries of the five 
     geographical regions of the United States.
       (c) Report.--
       (1) In general.--Not later than 18 months after appointment 
     of all members of the Commission--
       (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, or critical infrastructure 
     protection.
       (F) Cost analysis of legislative or regulatory changes 
     proposed in the report.
       (G) Analysis of the impact of altering existing protections 
     for individual privacy on the overall operation and 
     functionality of the Internet, including the impact on the 
     private sector.
       (H) Recommendations on non-legislative solutions to 
     individual privacy concerns, including education, market-
     based measures, industry best practices, and new technology.
       (I) Review of the effectiveness and utility of third-party 
     verification of privacy statements, 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 or members 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, 
     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 30 days after the 
     appointment of the Chairperson of the Commission, 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) 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.
       (e) 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.
       (f) 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.
       (g) 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).
       (h) 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 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

[[Page 20313]]

     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.
       (i) Rules.--The Commission shall adopt other rules as 
     necessary for its operation.

     SEC. 8. TERMINATION.

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

     SEC. 9. 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.

     SEC. 10. 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. 11. 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.

  The SPEAKER pro tempore (Mr. Pease). Pursuant to the rule, the 
gentleman from California (Mr. Horn) and the gentleman from California 
(Mr. Waxman) 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. 4049, as amended.
  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, H.R. 4049 would establish a commission to engage in one 
of the Nation's most comprehensive examinations of privacy protection 
issues in more than 20 years.
  A few key strokes on a computer can yield a quantity of information 
that was unimaginable 26 years ago when the privacy act of 1974 became 
law. From e-mail and e-commerce to e-government, technology has changed 
the way people communicate, shop, and pay their bills.
  The downside of these advances is that a vast amount of personal 
information, such as credit cards and Social Security numbers, flows 
freely from home computers to commercial and government Web sites. 
Today, everything from medical records to income tax returns is being 
maintained in an electronic form and is often transmitted over the 
Internet.
  Growing concern over protecting the privacy of those records has led 
to the proposal of approximately 7,000 State and local laws, and more 
than 50 Federal laws. This bill before the House today will provide a 
most important function in this debate. The commission will examine 
privacy policies and laws throughout the Nation.
  The commission's work will help determine the extent to which the 
Nation's privacy laws and policies may need to be revised for today's 
information technology.
  Mr. Speaker, H.R. 4049 was introduced on March 21, 2000, by the 
gentleman from Arkansas (Mr. Hutchinson) and the gentleman from 
Virginia (Mr. Moran), a true bipartisan bill.
  The Committee on Government Reform's Subcommittee on Government 
Management Information and Technology held 3 days of legislative 
hearings on the issue, including a day of hearings at the behest of the 
subcommittee's minority members. The subcommittee approved the bill on 
June 14, 2000; and the full committee finalized its work on the bill on 
June 29, 2000.
  During the full committee's consideration, a number of amendments 
offered by the minority were adopted, and the bill was favorably 
reported to the full House.
  Mr. Speaker, I yield such time as he may consume to the honorable 
gentleman from Arkansas (Mr. Hutchinson), the chief author of the bill, 
for further discussion.
  Mr. HUTCHINSON. Mr. Speaker, I thank the gentleman from California 
(Mr. Horn) for yielding the time to me.
  Mr. Speaker, I certainly rise in support of this legislation, the 
Privacy Commission Act, and I want to thank the gentleman from 
California (Mr. Horn) for his leadership and cooperation on this.
  I want to thank the Democrat gentleman from Texas (Mr. Turner) for 
his coauthorship of it.
  I want to thank the gentleman from California (Mr. Waxman), the 
ranking member of the full committee, for his participation through 
this process, his very constructive criticisms and suggestions that he 
has offered. I think because of the gentleman's participation we have 
certainly made this a better product that has moved to the floor today.
  I certainly also want to thank the gentleman from the State of 
Virginia (Mr. Moran), my cosponsor, who from the very beginning has 
helped make this a bipartisan product which we have presented to this 
body.
  If we look back over the issue of privacy, the last comprehensive 
look at privacy that we have had in our Nation was 25 years ago in 
1974, and the report after that privacy study commission was privacy in 
the information age. Certainly that has changed in 25 years. But even 
that last commission gave us the hallmark of our privacy legislation 
today, the foundation of privacy here in the Federal Government.
  That was 1974. Basically, it is time that we need to do it again, and 
I do believe that Congress understands the issue of privacy and the 
importance of this issue to the American people. The NBC-Wall Street 
Journal poll indicated that the number one issue of Americans as they 
enter the next century is the concern about loss of personal privacy, 
and so Congress understands that.
  If we look at the issue of video rental records, we understand the 
public, and we do not want our video rental records disclosed to third 
parties, and we passed a law that prohibited that.
  We understand that driver's license information should not be passed 
along and sold to commercial enterprises. We passed a law that 
restricted that.
  When you look at cable stations and the knowledge as to what an 
individual, a consumer, clicks his channels and where he goes, we do 
not want that information passed along; and we pass a law that 
restricted it.
  Tax returns, we passed a law obviously that restricts the transfer of 
information from a tax return. So we deal with privacy, but Congress 
should not end its work with what we have done thus far.
  How about medical records? How about State law protection dealing 
with medical records; is that sufficient? Do we need a new Federal 
standard? How about the financial records? What do we need to do to 
further protect the transfer of financial information? And the answer 
is that regardless of what we can agree upon now, and I have sponsored 
various portions of privacy legislation and have moved forward, but 
regardless of what we agree upon now, we cannot end here.
  We need to build a consensus; and this bill, this privacy study 
commission, is designed to build this consensus that we have not been 
able to

[[Page 20314]]

form yet. I think it will help us to enhance personal privacy and do 
the work that Congress should do.
  Let me go to some of the particulars of this legislation. Obviously, 
the commission will consist of 17 members appointed by the President, 
the majority leader, minorities leader, Speaker of the House. So it 
certainly is bipartisan in the way that it is formulated, but it is 
tasked with numerous responsibilities from studying the current state 
of laws on individual privacy, to conducting field hearings across the 
country, listening to the people, as well as privacy experts.
  We are to submit a report to Congress, this commission will, within a 
timely fashion; and even though 18 months is a drop-dead date, 
hopefully they will come back sooner, and they have specifically the 
right to come back sooner if they can reach that consensus.
  The Committee on Commerce has stepped in and suggested some very 
important changes but are not dramatic in its impact. One of them is 
that the commission should look at the impact on the Internet and its 
functionality. Certainly we want to do that. It says that any 
commissioner or group of commissioners may dissent and submit a record, 
so there is nothing dramatic about those changes; but those have been 
some suggested improvements from the Committee on Commerce.
  I want to talk for a second about the processes as the gentleman from 
California (Mr. Horn) just indicated. We have gone through 3 days of 
hearings. We have gone through markup in subcommittee and full 
committee, and it was during that time that I think we really improved 
this legislation. One of the suggestions that came from the Democrat 
side was suggested by the gentleman from California (Mr. Waxman), the 
ranking member, who said that we should make it clear that this 
legislation in no way should impede the passage of individual privacy 
legislation. The language that was suggested by the gentleman from 
California (Mr. Waxman) was included.
  The gentlewoman from New York (Mrs. Maloney) suggested very 
appropriately that the commission should look at the extent that older 
individuals are subject to exploitation involving the disclosure of use 
of their financial information. That was adopted in subcommittee.
  Then the third-party verification efforts, an amendment sponsored as 
well by the gentlewoman from New York (Mrs. Maloney) was adopted.
  The importance of having civil liberties represented on the 
commission was accepted as well, and so there was tremendous 
improvement through this process. We have really followed the regular 
order as we have come to this full House.
  This is a very important commission that I believe will do good work. 
It is important that we have a good vote today, that will send it on 
its way in a bipartisan way; and I think that when it comes back with a 
report, hopefully, and I see the gentleman from Massachusetts (Mr. 
Markey) joining us, that we can continue to work on individual privacy 
legislation between now and the end of this year and into next 
Congress.
  In the meantime, regardless of what else happens, we need to have 
this commission that will continue to recommend and supplement what we 
are doing in this body and to assist in our efforts, and I urge my 
colleagues to support this common sense approach to privacy.
  Mr. HORN. Mr. Speaker, I reserve the balance of my time.
  Mr. WAXMAN. Mr. Speaker, I yield myself 3\1/2\ minutes.
  Mr. Speaker, I want to compliment the gentleman from Arkansas (Mr. 
Hutchinson) and the gentleman from Virginia (Mr. Moran) for their 
efforts to focus attention on the important issue of privacy. I believe 
that H.R. 4049 is a well-intentioned bill. The authors' sincerity in 
their motivation to improve privacy protections is a real one.
  I strongly object, however, to the decision to bring up this bill as 
a suspension bill. Until today, we have had no opportunity to consider 
fundamental privacy legislation that matters to millions of Americans. 
And now that we have a bill, we are only provided with 20 minutes of 
debate time and no chance for amendments. And I think that is wrong.
  Mr. Speaker, the gentleman from Arkansas (Mr. Hutchinson) said that 
his bill could go forward and other legislation on the subject of 
privacy could be considered at the same time. Well, the reality is that 
other legislation on privacy is not being considered at all. For 
example, the gentlewoman from New York (Ms. Slaughter) has introduced 
genetic nondiscrimination and privacy legislation that has broad 
support; yet there has not even been a hearing on it.
  The gentleman from California (Mr. Condit) introduced legislation 
with the gentleman from Massachusetts (Mr. Markey), the gentleman from 
Michigan (Mr. Dingell), myself and many other colleagues to provide 
comprehensive medical privacy protections for American consumers. That 
bill, which is in the subcommittee of the gentleman from California 
(Mr. Horn), has not even been given a hearing.
  The gentleman from New York (Mr. LaFalce) and the gentleman from 
Massachusetts (Mr. Markey) have introduced comprehensive financial 
privacy protections; yet there has not even been a hearing on their 
bills.
  Today, with consideration of H.R. 4049, the leadership is finally 
taking up a bill concerning privacy, but the leadership has brought the 
bill up under suspension of the rules. This procedure blocks the 
gentleman from California (Mr. Condit), the gentleman from New York 
(Mr. LaFalce), the gentleman from Massachusetts (Mr. Markey), the 
gentlewoman from New York (Ms. Slaughter), and others from bringing up 
measures to provide privacy protections for American consumers.
  We should not waste this opportunity to consider meaningful privacy 
protections. The Privacy Commission Act should be brought to the floor 
under regular order so that Members have an opportunity to discuss 
whether substantive privacy protections or other improvements should be 
added to the bill through amendment.
  One of the main issues that has been raised about privacy, about the 
privacy commission bill, is whether its practical effect would be to 
delay the enactment of privacy protections.
  People who advocate privacy protections have expressed concern about 
the potential for delay. For example, the Consumer Federation of 
America Consumers Union and U.S. PIRG have stated that ``the creation 
of a commission would delay efforts to put meaningful privacy 
protections on the book.''
  People who oppose privacy protections have been happy that this bill 
could delay privacy initiatives. On April 17, 2000, there was an 
editorial in the National Underwriter magazine that urged insurance 
companies to support this measure, because the presence of such a 
commission will provide a strong argument for Congress and the State 
legislatures to wait for the results before enacting, as they put it, 
highly restrictive privacy legislation.
  Under the right circumstances, establishing a privacy commission 
could be a helpful step in addressing privacy concerns. If Congress 
concurrently took action on enacting privacy legislation or at least 
made a binding commitment to take such action, American consumers could 
be confident that they would complement, rather than delay, this 
legislation.
  Mr. Speaker, I want to emphasize this point and urge my colleagues to 
oppose this suspension.
  Mr. Speaker, I reserve the balance of my time.

                              {time}  1500

  Mr. HORN. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, as I looked at the evolution of this legislation, every 
bill or an amendment that the Democratic minority gave us we accepted, 
and what we are going to have here is just on and on and on, and 
nothing is going to happen.
  Five years ago when the gentleman from California (Mr. Condit) was in 
my position as chair of the subcommittee on Government Management, 
Information, and Technology, we had legislation that he submitted, a 
very fine bill.

[[Page 20315]]

We have had others. We have Senator Leahy come over. He has a very fine 
bill. So it goes. Nobody can pull all the pieces together.
  In the closing weeks of Congress, there is absolutely no way to have 
the floor time to start having amendments all over the place. I would 
love to have floor time and have a 3-day debate. It is going to be a 3-
day debate, at least.
  It has been a bipartisan proposal all the way, and I would hope we 
would get something done where it could be pulled together and we might 
look at it as a base bill, which does not preclude the gentleman from 
Massachusetts (Mr. Markey), the gentleman from Connecticut (Mr. Shays). 
We have a whole bunch of people here who want to have a privacy bill. I 
am not against that. I just want to get something done in a practical 
sense.
  I would hope, Mr. Speaker, that my colleagues would support this and 
not have to go through the--we have the votes, I am sure, on the 
majority, but we ought to get this movement going.
  Mr. Speaker, I reserve the balance of my time.
  Mr. WAXMAN. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I just want to point out that if we are going to be 
serious about doing something on privacy legislation, we should have 
had hearings in the Horn subcommittee, that is how we organize a 
consensus, not wait for one to happen. We ought to have hearings. We 
ought to have had leadership to develop legislation. We have not had 
that leadership to develop legislation.
  Secondly, not every one of our amendments was adopted in committee. 
We wanted a deadline for action by the Commission and an opportunity 
for privacy protections to be put into place.
  Mr. Speaker, I yield 3 minutes to the gentlewoman from the District 
of Columbia (Ms. Norton), a very important member of our committee.
  Ms. NORTON. Mr. Speaker, I thank the gentleman for yielding time to 
me.
  Mr. Speaker, normally bills to study serious problems are like apple 
pie and motherhood, but I will tell the Members, this one deserves the 
serious reservations of Members of this body in light of mounting 
concerns among the public about medical privacy and Internet privacy.
  When I chaired the Women's Caucus last term, one of the bills at that 
time Democratic and the Republican women were able to get some kind of 
consensus on was a bill involving genetic privacy.
  The notion that we are here talking about studying privacy at the end 
of yet another term pains me to even hear. This issue is at the top of 
the agenda of the American public. The concern of the public is so loud 
and so real, and has been there for so long after so many hearings 
about various aspects of this problem, that the expectation has been 
that we would do something about it at least by now.
  Let us take medical privacy. That one is so long overdue, 
particularly with respect to genetic information. We now know the 
genetic code. That thing is traveling against us at such a speed. We 
are here talking about studying it with no time limit? People are 
thinking, will I lose my job if I go to the company doctor or to any 
doctor to talk about my condition? And all doctors use the Internet 
now.
  Do we know where the public is on this? They are clamoring on the 
doors of this Congress, saying, ``Protect me.''
  My own recent experience makes me come to the floor. I needed 
something, a fancy new telephone. Somebody found out that I could order 
it and get it in 24 hours over the Internet. I said, over my dead body. 
I have a recognizable name. I am not going to put the name of Eleanor 
Holmes Norton on the Internet, because at least in this region somebody 
might decide that that is the name to use.
  Do Members know how many people have lost their identity fooling with 
the Internet? I am not going to lose what little identity I have left. 
That is one of the things people write again more and more. Yet, we 
say, here is our answer, we will study that for you. We are making 
people think we are doing something about something they have clamored 
for us to do something about for almost 10 years now.
  This bill says that this commission is going to make recommendations 
on whether additional legislation is necessary? Give me a break. Tell 
that to the public, that we are trying to find out if it is necessary.
  Or listen to what the FCC has just said: ``Legislation is now needed 
to ensure consumers online privacy is adequately protected.'' It is 
necessary. This bill does nothing about that necessity. It is very hard 
for me to advocate support of this bill. I do not do so.
  Mr. HORN. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I just want to answer the ranking member of the full 
committee on hearings. We had a full hearing on April 12, 2000. We had 
a full hearing on May 15. That is two major hearings on a rather simple 
bill, but it is the only way we are going to get something done.
  Mr. Speaker, I yield 3 minutes to the gentleman from Texas (Mr. 
Turner), the ranking member on the subcommittee.
  Mr. TURNER. Mr. Speaker, I thank the gentleman for yielding time to 
me.
  Mr. Speaker, I appreciate the good work that the gentleman from 
California (Mr. Horn) has put in on this bill. It is clear to all of us 
that the American people are demanding action and that their privacy be 
protected by this Congress. I think it perhaps is one of the most 
critical issues and one of the most difficult issues we face.
  I think we also understand that there are very complex issues 
surrounding the discussion of privacy, and there are many opinions that 
have been voiced to us in the course of proceedings on this bill and 
others that indicate that the Congress must carefully consider 
legislation in this area.
  H.R. 4049 is a bipartisan measure which would establish a commission 
charged with studying issues relating to the protection of individual 
privacy and the balance to be achieved between protecting privacy and 
allowing appropriate uses of information.
  The commission would submit a report to Congress and the President 
within 18 months after its appointment. As a cosponsor of the bill, I 
commend my colleagues, the gentleman from Arkansas (Mr. Hutchinson) and 
the gentleman from Virginia (Mr. Moran) for their leadership on a topic 
of this importance.
  I commend the ranking member, the gentleman from California (Mr. 
Waxman), on his willingness to work with us on the issue. I agree with 
him, that there are bills pending in this Congress that can be acted 
upon and should be acted upon prior to the final report of this 
commission.
  The Subcommittee on Government Management, Information, and 
Technology of the Committee on Government Reform held 3 days of 
legislative hearings on this bill, heard from a number of witnesses, 
hearing various points of view. The witnesses testified regarding the 
commission's scope, the relationship of ongoing and past privacy 
efforts, the composition of the commission, and other issues.
  I want to commend the gentleman from Arkansas (Mr. Hutchinson) for 
his willingness to accept an amendment, a manager's amendment, at the 
full committee level which clarified that the intent of this bill is 
not to delay or obstruct any pending, ongoing privacy initiatives in 
this Congress.
  It has been more than 20 years since a privacy commission studied 
this issue. It is clear to me that we need a comprehensive reevaluation 
of the subject; that legislation that is pending can be considered and 
passed while we are studying this issue, but there are enough problems 
in the area of privacy regulation, privacy protection, to justify a 
commission with the expertise that is laid out in the bill as far as 
the creation of a commission and its membership.
  I believe Congress should strictly adhere to the intent of the bill, 
which calls for the commission to be used as a supplement to and a 
sounding board for ongoing legislative privacy initiatives rather than 
any means of delay.
  Again, I commend the gentleman from Arkansas (Mr. Hutchinson) and the 
gentleman from Virginia (Mr.

[[Page 20316]]

Moran) for their good work, and I urge the House to adopt this 
bipartisan measure.
  Mr. WAXMAN. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, before yielding to the gentleman from Massachusetts (Mr. 
Markey), who is one of the champions on privacy questions in this 
Congress, I want to point out that the Horn subcommittee held three 
hearings, two at our request. They were all on the issue of this 
commission. There was not a single hearing on the medical privacy issue 
or the Internet privacy, which is also the jurisdiction of that 
committee.
  I regret that, because it seems to me we could be much further down 
the road in directly enacting legislation if we had that leadership.
  Mr. Speaker, I yield 6 minutes to the gentleman from Massachusetts 
(Mr. Markey), who has raised the privacy issue in a number of different 
spheres and has been such an enormous champion in trying to get 
legislation, and shown such leadership in trying to get that 
legislation.
  Mr. MARKEY. Mr. Speaker, I thank the gentleman for yielding time to 
me.
  Mr. Speaker, this is a very important debate. I think it is important 
for everyone who is listening to the debate to understand what we are 
debating and what we are not debating.
  We are debating a privacy commission. In fact, that is how it is 
described by the proponents. But for those that want real privacy, we 
are debating a privacy omission. That is what this debate is really all 
about.
  We have bills before Congress. They have been sitting there for 
years. The gentleman was the chair of this subcommittee and did not 
have any hearings on the subject. The Committee on Banking and 
Financial Services, no hearings; the Committee on Commerce, no 
hearings.
  Everyone understands what the problem is. The Internet industry 
understands, the banking industry understands, the health industry 
understands the issues. What frightens them most greatly is that the 
public understands them, as well.
  These are not complicated issues. We over the years have made many 
decisions with regard to the privacy of the American public. It is not 
something that requires a lot of study.
  We make it a requirement that a driver of an automobile have to opt 
in before any license information, driver's license information, can be 
transferred. If we rent a video cassette at a video rental store, they 
have to get our permission before they transfer that information. If we 
are watching cable TV and late at night we might flick over to one of 
those pay per view channels that maybe we don't want the rest of the 
family, much less everyone else in the neighborhood, understanding that 
we might have watched, the cable industry cannot tell anyone that we 
did that. They have to get our permission before they do so. If we call 
anyone on our phones, the phone company cannot tell anybody who we 
called without our permission.
  If a child goes online to a commercial site for children and they are 
under the age of 13, that site cannot transfer that information to 
anyone else without the express permission of parents. But if the child 
is 13, if the child is 14, if the child is 15, there are no 
restrictions.
  Do Members think this Congress could figure out that maybe we should 
protect 13- and 14- and 15-year-olds? We are told by the committee that 
they cannot figure that out. It is too hard for them to know whether or 
not a 13-year-old or a 14-year-old or a 15-year-old's information 
should be transferred. They need to get an expert panel of industry 
officials, primarily, I am going to bet that is the case, to tell us 
whether or not those children should be protected.
  Mr. Speaker, that is why we run for office. People in this country 
know whether or not they want their health care records protected or 
not. They know whether or not they want their financial records 
protected. We do not need a Commission to study this. This is not 
beyond the ability of this Congress to deal with.
  What the bill is really all about is punting for another 2 years, 18 
months, for the commission to study it. It means it is right before the 
next Congress ends, in the year 2002, which is exactly what the 
industry wants. We do not have to be a genius to figure out what to do 
to protect children, to protect the medical record of Americans, to 
make sure that somebody cannot take all of our checks or all of our 
brokerage accounts, all of the medical exams we might have to take for 
an insurance policy, and then sell it as though it is a product.
  Do we really have to study that? I don't think so. This is just a 
commission to make sure that this Congress can say that it did 
something; that is, put a fig leaf over this issue.
  So Mr. Speaker, yes, we need a new economy, but we need a new economy 
with old values. We need commerce with a conscience. This Congress, by 
passing this bill, demonstrates that it is unwilling to grasp this 
moral issue of what corporate America is doing in taking the private, 
most sensitive information of American families and turning it into a 
product which is sold around the country and around the world.
  So if Members want privacy and they want it to happen, vote no on 
this bill and force them to bring out the bills over this next week 
that ensure that on the Internet, on financial records, on the health 
care data of every American family, we give them the protections which 
they deserve.
  Otherwise, this bill is going to guarantee that there will be no 
action in the next Congress either, because the report does not come 
back until 2 years from now, at the end of the next Congress.

                              {time}  1515

  So I think that, while they may have had all the hearings on their 
commission bill, that, without question, whether or not we are going to 
ensure that the new technology ennobles and enables Americans rather 
than degrades and debases, whether or not we come to grips with the 
fact that there is a sinister side of cyberspace and that we understand 
it and that we demonstrate to the American people that we do understand 
it, and that we become the privacy keepers as were our local bankers 
when we were younger, our doctors and nurses when we were younger, and 
that we identify with those privacy keepers rather than the privacy 
peepers and the information reapers which these new data banks are able 
to make possible, creating products out of the family information of 
each one of us in the United States. I do not believe that there is an 
issue more central to the integrity and the well-being of a family in 
the United States than whether or not we give them the rights today to 
protect that information from being turned into a product.
  To say that we do not have the ability to understand it says that we 
do not understand cyberspace, we do not understand the world in which 
everyone is living, and we do not understand that 85 percent of the 
American public in every single poll are demanding us to give them the 
right to protect this information. Vote no on this commission.
  Mr. HORN. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, before I yield to the gentleman from Virginia (Mr. 
Moran), the co-author of this legislation, I want to say that the 
gentleman from Massachusetts (Mr. Markey) is always very eloquent. Did 
he beat on the door of the chairman of the Committee on Commerce? Did 
he beat on the door of the chairman of the Committee on Judiciary? I 
did not hear him beating on my door.
  But we knew the gentleman from Massachusetts and five others were out 
there, and we would have been glad to give them a hearing. But there 
are a lot of other committees around here that have the jurisdiction. I 
am not aware of the gentleman from Massachusetts ever going before any 
of those committees. But he always is eloquent, no question about it.
  Mr. MARKEY. Mr. Speaker, will the gentleman yield?
  Mr. HORN. Mr. Speaker, I yield 10 seconds to the gentleman from 
Massachusetts (Mr. Markey) to answer how

[[Page 20317]]

many doors did he knock on. When I have a bill out, I am knocking on 
doors.
  Mr. MARKEY. Mr. Speaker, I was given an ironclad commitment by the 
other side when we were debating the financial services bill last 
November that they would have hearings all this year in the Committee 
on Banking and Financial Services on financial services and health care 
privacy. They had no hearings on this issue. That side over there did 
not, in fact, fulfill its commitment.
  Mr. HORN. Mr. Speaker, I yield 4\1/2\ minutes to the gentleman from 
Virginia (Mr. Moran).
  Mr. MORAN of Virginia. Mr. Speaker, I want to start by thanking the 
distinguished gentleman from California (Mr. Horn). He made it clear 
from the outset that he wanted bipartisan constructive legislation, 
that he wanted hearings, and he wanted to do what we could do given the 
information that we had available to us.
  I also want to thank the gentleman from Arkansas (Mr. Hutchinson). He 
has worked, again, in a constructive manner, listening to everyone that 
wanted to have input into this legislation, has never behaved, to my 
knowledge, in this context in any partisan fashion. He wanted this to 
be a bipartisan bill. So I was very pleased to work with him.
  I thank the gentleman from Texas (Mr. Turner), the ranking member of 
the subcommittee. Again, all they wanted to do was work in a 
constructive bipartisan manner.
  Now, I also want to thank the gentleman from California (Mr. Waxman) 
whose leadership has been outstanding. In fact, I agree with the 
gentleman's emphasis on the need for privacy legislation and with the 
gentleman from Massachusetts (Mr. Markey).
  I think that we ought to have privacy legislation right now, 
particularly with regard to the protection of medical records. No 
question. Let us do it. We will vote for it. I know that the gentleman 
from California (Mr. Horn) and the gentleman from Arkansas (Mr. 
Hutchinson) will and the gentleman from Texas (Mr. Turner) will as 
well.
  So I would say to the gentleman from Massachusetts (Mr. Markey), my 
very good friend, I wished that I had had the same rhetoric teachers as 
my colleague, but I did go to the Jesuits, and I remember some of this, 
and it is very effective and impressive.
  But let me say to the gentleman from Massachusetts just do it. If he 
wants privacy legislation, do it. As the gentleman from California (Mr. 
Horn) suggested, the gentleman from Massachusetts is on the Committee 
on Commerce.
  The reality is that it is not going to get done. This is all we have. 
We have made it clear, every speaker has made it clear this does not 
preclude any other privacy legislation. It is meant to compliment it. 
We do not have to take 18 months. We can do it in 6 months.
  The problem is, while the gentleman from Massachusetts (Mr. Markey), 
my good friend, may have all the answers, I do not. I am not sure what 
to do. Given the fact that there are 7,000 privacy bills introduced in 
State legislatures, one out of every 5 legislative bills introduced 
around the country this year had to do with privacy, we have got dozens 
of bills pending before our committees on privacy, which one of them 
works? Which ones will create a consistency? I am not sure. I do not 
have those answers.
  I am not even sure how we protect the consumer choice that is very 
important to many people while ensuring that we protect people's basic 
privacy which is a fundamental American right and freedom. I do not 
have those answers. I am not sure this Congress has those answers. 
Perhaps some of us do; and if they do, just do it. Come up with the 
legislation, and we will vote for it.
  In the meantime, we want to get the experts together to bring out all 
the factors that need to be considered so that we can have the most 
thoughtful, the best considered legislation possible.
  This is critically important. It is critically important to our 
economy and to our society. It is a basic American freedom, individual 
privacy. But let us not mess it up.
  I know that privacy is off the charts on every poll we take. I know 
that all the voters want us to do something about privacy. But if we 
are going to do it, we ought to do it right. We ought to do it in a 
bipartisan way. We ought not politicize it. It ought to be good, public 
policy that is sustainable. That is what this legislation does. That is 
all it does.
  We have worked on this. We have listened to everyone. I know the 
gentleman from California (Mr. Waxman), my friend and the distinguished 
leader will recall that, in fact, when we had hearings, the gentleman 
from Massachusetts (Mr. Markey) testified about medical records, about 
financial records.
  I am not sure I got an answer about the question how do we make 
consistent privacy regulations on medical records, on financial 
records, on the children's privacy protection act that was just passed. 
How do we bring all these together and have a consistent Federal 
policy? How do we get consistency among the States without preempting 
their right to protect their citizens? I do not know. Let us ask the 
experts, and that is what this commission does.
  Mr. Speaker, I rise today in strong support of H.R. 4049. I would 
like to thank my colleague Asa Hutchinson and Jim Turner, the ranking 
member of the subcommittee, for their leadership and bipartisan efforts 
in introducing this bill.
  This legislation has been criticized by some as a proposal to slow 
down other privacy legislation. On the other hand, the idea of a 
privacy commission has been criticized by at least some in the business 
community out of a concern that it may lead to the enactment of 
overbearing legislation.
  Unfortunately, this way of thinking and operating has become a 
familiar pattern with a familiar result. Congress winds up doing 
nothing. That is really what we are talking about today. Do we engage 
in the same old partisan gridlock and do nothing or do we get serious 
about moving forward on some of the most important issues in this 
nation and pass this legislation.
  I respect and appreciate much of the work that colleagues and friends 
like Ed Markey and John LaFalce have done on privacy issues. I agree 
with them that there are some privacy issues, like the protection of 
medical records, that Congress should immediately move to protect.
  That is why we purposely did not include any moratorium or preemption 
language that would prevent Congress or the states from enacting 
privacy legislation that may be needed before the work of this 
commission is done. But the reality is that there is not going to be 
any other privacy legislation passed this term. In the meantime, we can 
be doing something constructive.
  Let me repeat that: Nothing in this bill precludes Congress or the 
states from moving forward on privacy legislation.
  I do believe, however, that the work of the Privacy Commission will 
lead to better overall decisions about privacy, particularly as it 
relates to the Internet and electronic commerce.
  Privacy has become a major public policy issue. Last year, the state 
legislatures considered over 7,000 privacy bills. Approximately one out 
of every five bills introduced in the state legislatures was a privacy 
bill. The Congress currently has before it dozens of privacy bills. The 
federal regulatory agencies are busy on numerous privacy initiatives.
  And yet, it has been more than twenty years since the Privacy 
Protection Study Commission issued its landmark report in 1977. Since 
then, the personal computer and the Internet have transformed our 
economy. At the same time, they have raised and continue to raise new 
privacy issues that the 1977 study could not have envisioned. It is 
time to revisit the issues from the 1977 report as well as the broader 
new issues raised by the information economy. The Privacy Commission 
Act creates an opportunity to do just that.
  Everyone agrees that getting privacy policy right will go a long way 
towards fully developing the potential of the Internet and e-commerce. 
The extent to which this exciting new medium will continue its 
incredible expansion depends in large measure on balancing legitimate 
consumer privacy rights with basic marketplace economics. An open and 
supportive legal environment has helped encourage the rapid development 
of the Internet. Companies and consumers alike realize that Internet 
privacy is the one issue that must be done right.
  Americans are rightly concerned about their lack of privacy. We know 
and appreciate that

[[Page 20318]]

the public worries about cookies; worries about the capture of 
information regarding browsing behavior; and worries about profiling. 
But, we don't know what the dimensions are of the real privacy threats 
posed by these activities and what the economic payoffs are of these 
activities. We certainly don't know very much yet about the impact of 
recently enacted privacy protection legislation, such as the Children's 
Online Privacy Protection Act or the privacy protections in Title V of 
Gramm-Leach-Bliley.
  There is a lack of consensus about whether the U.S. should move 
toward the establishment of some type of national privacy regulatory 
agency or whether the existing combination of courts, consumer 
protection authorities, Attorney Generals and various federal agencies 
provide a more than adequate privacy regulatory presence.
  There is also the troubling question of preemption. In an electronic 
environment where information moves across local, state, and national 
borders in nanoseconds, does it really make any sense to allow the 
location of data, sometimes the momentary location of data, to dictate 
the rules that apply?
  The stakes are high. As a nation, we must find a way to protect 
information privacy and to give our citizens confidence that they can 
engage in e-commerce and provide access to their personal information, 
knowing that the information will be used appropriately and in ways 
that are consistent with their understanding of the transaction.
  At the same time, we must preserve the ability of the business 
community to use personal information effectively to promote consumer 
convenience and to drive down the cost and improve the quality of goods 
and services; and to personalize the marketplace--in a very real sense, 
revolutionize the marketplace--to spur growth and to give consumers 
information about the goods and services which consumers wish to 
receive.
  The Privacy Commission created by H.R. 4049 will not answer every 
question to everyone's satisfaction. But, there is every reason to 
believe that this is exactly the right time for a Privacy Commission to 
look at these questions, as well as the profound changes in the 
underlying technology and the underlying business models that have 
ignited the current privacy debate. This will allow us to get to our 
destination with fewer mistakes and in a way that encourages the 
effective use of personal information while protecting privacy.
  The Privacy Commission Act is supported by The Information Technology 
Industry Council, The Center for Democracy and Technology, The American 
Electronics Association, The Information Technology Association of 
America, and The Association for Competitive Technology.
  I would like to thank Asa for his leadership on this issue and I urge 
my colleagues to support the serious study of these important issues 
and to vote for this important legislation.
  Mr. WAXMAN. Mr. Speaker, may I inquire how much time each side has 
remaining.
  The SPEAKER pro tempore (Mr. Pease). The gentleman from California 
(Mr. Waxman) has 6\1/2\ minutes remaining. The gentleman from 
California (Mr. Horn) has 50 seconds remaining.
  Mr. WAXMAN. Mr. Speaker, I yield 2 minutes to the gentleman from 
Louisiana (Mr. Tauzin).
  Mr. TAUZIN. Mr. Speaker, I thank the gentleman from California (Mr. 
Waxman) very much for yielding me this time.
  Mr. Speaker, I rise in opposition to this legislation. Let me explain 
quickly why. First, it is important to know that this body has 
legislated for the past 30 years on privacy concerns. There are at 
least a dozen or so privacy bills that already have been passed by this 
body, some recently dealing with children online, some recently dealing 
with financial services, issues, or medical records. We continue to 
examine those before the Committee on Commerce and other committees of 
this body.
  Recently, the Chamber of Commerce put on an extraordinary function at 
Lansdowne, Virginia where we brought in private sector individuals and 
learned a great deal more about the issue. The staff, as we speak, of 
the Committee on Commerce is working with my staff to see if we cannot 
have one additional hearing before we leave Congress this year as we 
prepare for what the Committee on Commerce expects to do in this area 
next year. But the last thing we need to do, in my opinion, is to give 
this issue to some commission to make decisions about these critical 
issues.
  Let me tell my colleagues about a report that GAO just did at the 
request of the gentleman from Texas (Mr. Armey) and I. The gentleman 
from Texas (Mr. Armey) and I asked GAO to look at Federal Web sites to 
see how well they protected privacy and to use the FTC standard to find 
out which among our Federal sites were out of line.
  Do my colleagues know how many sites on the Federal Web complied with 
the FTC guidelines? Three percent. Fourteen percent of them had 
cookies. Everyone of them was gathering personal information. Only 23 
percent met the test for security, which means those Web sites are open 
to hackers every day.
  The bottom line is the Federal Government itself does not have its 
act in order. Our own Federal Web sites, 3 percent only comply with the 
FTC. Yet, we are going to appoint a commission to tell us how the 
private sector should be adopting rules on privacy. No, I think that is 
our responsibility. I think our responsibility is, number one, number 
one, to get the Federal Web sites in line so that, on the Federal site 
where one has to give up information to the government, that 
information is protected properly; and then, two, for the Committee on 
Commerce and the legislature to come up with some good legislation for 
the private sector.
  Mr. WAXMAN. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, along the lines of the argument just made by the 
gentleman from Louisiana (Mr. Tauzin), I want to point out that a 
number of privacy experts, including individuals from the Electronic 
Privacy Information Center, Consumer Action, Privacy Times, the Privacy 
Rights Clearinghouse, the Free Congress Foundation, Junk Busters and 
others, they said: ``We oppose this bill because it is unlikely to 
advance privacy protections in the United States. To the contrary, if 
adopted, it would likely retard the progress of legislation that would 
result in meaningful protections for Americans.
  ``Enacting this bill would give the appearance that Congress was 
finally doing something about protecting Americans' right to privacy 
when, in fact, it was not. Such a result would be unfair to the 
American people.''
  I agree with the argument that the gentleman from Louisiana (Mr. 
Tauzin) and others have made, and I would urge my colleagues to oppose 
this legislation.
  Mr. Speaker, I am glad to yield 2 minutes to the gentleman from 
Massachusetts (Mr. Markey).
  Mr. MARKEY. Mr. Speaker, I thank the gentleman from California for 
yielding me this time.
  Mr. Speaker, let me give my colleagues an illustration of the problem 
that we have right now. The gentleman from Iowa (Mr. Leach), 
Republican, passed a bill earlier out of his committee that would have 
given additional opt-in protections for medical information. It passed 
out of the Committee on Banking and Financial Services 26 to 14. That 
was back on June 29 of this year. The bill has not been heard from 
since.
  It just sits over there with the leadership on the Republican side 
holding onto this bill even though, on a bipartisan basis, Democrats 
and Republicans have already come to an agreement that the financial 
records that include sensitive medical information should be protected 
with this extra level of an opt-in protection.
  In addition, I mean, we can go down the litany, the gentleman from 
California already went down earlier the litany of bills which have 
been introduced in this Congress which are still awaiting hearings, 
still awaiting deliberation. But it is hard for Members of Congress to 
reach that bipartisan consensus if no hearings are being held by the 
Republican leadership on these very sensitive subjects.
  And to basically subcontract out our responsibility to a commission 
when the American public expects us to be making those decisions 
ourselves, and we have the capacity to do so, while we feign ignorance, 
we are basically saying there is an invincible ignorance on our part, 
when we cannot understand

[[Page 20319]]

these issues, when in fact the reality is that, when we act on these 
issues, when we move, the Republican leadership then blocks them from 
coming out here on the floor because the industries that are affected 
do not want the American people to have any additional privacy.
  That is the core issue that we are talking about here, whether or not 
we are going to take on those large industries who basically have a 
commercial stake in compromising the privacy of every single American.
  At this point in time, if we look down the litany of bills that have 
been before the Congress over the past year, we can say that, without 
question, that there can only be a zero which is given to the 
Republican leadership in dealing with this issue of American privacy.
  Mr. WAXMAN. Mr. Speaker, I yield 30 seconds to the gentleman from 
Virginia (Mr. Moran).
  Mr. MORAN of Virginia. Mr. Speaker, I thank the very distinguished 
gentleman from California for yielding me this time.
  Mr. Speaker, I would ask my colleague if he is aware, I was the 
author of the opt-in requirement on licensing and registration of 
automobile vehicles, and it is working. But it was done in a bipartisan 
way if the gentleman will recall and we had adequate information.
  I would suggest to my colleague that if he has legislation that can 
pass that the authors of this bill would be more than happy to sign on 
to that legislation and support it.

                              {time}  1530

  We just want to get something done that will work, that is 
constructive, and that is sustainable.
  Mr. WAXMAN. Mr. Speaker, I yield myself such time as I may consume to 
point out that the predecessor of the gentleman from California (Mr. 
Horn) of the committee that has the jurisdiction over privacy 
legislation, the gentleman from California (Mr. Condit), worked for 
many years on the issue of medical privacy; and, as a result, the 
gentleman from California (Mr. Condit) introduced a bill that had 
conservatives to liberals in the House on his legislation.
  Rather than build on that legislation and move it forward, the 
Republican leadership let it languish. Rather than work to resolve the 
issues of financial privacy, the Republican leadership in the Congress 
has not brought that to the floor. What the Republican leadership in 
the Congress has suggested we do about privacy is set up another 
commission. And many of us fear that setting up another commission is 
an excuse not to move forward. That is why, when this commission 
legislation was brought before the committee, we wanted a mandatory 
deadline to force actual action to protect people's privacy, not simply 
to continually study it.
  So I regret we do not have legislation on the subject, and that is 
why I would urge that we do not agree to this bill on suspension. I 
urge my colleagues to vote ``no.''
  Mr. Speaker, I have no further requests for time, and I yield back 
the balance of my time.
  Mr. HORN. Mr. Speaker, I yield myself such time as I may consume.
  Obviously, this is the only thing that is going to happen, and it 
sounds like a lot of bipartisanship that we pride ourselves on in our 
subcommittee, with the gentleman Texas (Mr. Turner) and the gentlewoman 
from New York (Mrs. Maloney) over the years, is somehow missing here.
  I am very sorry that the ranking Democrat on the full committee 
cannot go along on this. If the gentleman knew he was going to kill it, 
why did he not say it when we had it before the full committee instead 
of playing games here when we are getting near an election?
  Mr. Speaker, I yield the balance of my time to the gentleman from 
Arkansas (Mr. Hutchinson), who spent a lot of hours and weeks and 
months on this legislation.
  Mr. HUTCHINSON. Mr. Speaker, how much time remains?
  The SPEAKER pro tempore (Mr. Pease). The gentleman from Arkansas (Mr. 
Hutchinson) has 30 seconds.
  Mr. HUTCHINSON. Mr. Speaker, one thing I believe we agree on is that 
we want to go in the same direction in protecting privacy. The bottom 
line here is that, for whatever reason, the bill of the gentleman from 
Massachusetts (Mr. Markey) is not moving through the Committee on 
Commerce.
  Please do not disappoint people who want to do something about 
privacy by saying we are not going to do anything this year. This is 
our only opportunity. I hope we can come back and do something in the 
Committee on Commerce, but I also hope this bill can pass this year, 
and I ask for my colleagues' support.
  Mr. STARK. Mr. Speaker, enactment of federal legislation to protect 
the medical privacy of Americans has been a subject of congressional 
debate for years. More recently, with passage of the financial 
modernization legislation last year, financial privacy has been on the 
minds of millions, and electronic privacy concerns are becoming a major 
source of friction for dot.com companies and consumers.
  Legislative solutions in these areas are not simple. Inevitably, the 
rules that will do the most to protect consumers cause affected 
businesses to object that they would be burdensome and costly. But 
reasonable solutions are needed, or the fears that many harbor now--
that public and private entities they know nothing about are somehow 
gaining access without their knowledge to intimate (and sometimes 
damaging and embarrassing) information about them--will increasingly 
cause privacy-protective consumers to take extreme measures to avoid 
releasing as much personal information as possible. Or, they may simply 
decide to lie.
  Already, surveys tell us that some consumers are deciding not to seek 
certain medical treatments--genetic tests in particular--because they 
fear that the results could render them uninsurable. On the other hand, 
insurers insist that they have a right to seek and demand as much 
information as possible in order to accurately determine risk and 
premiums.
  Legislation is urgently needed to set boundaries and rules that are 
fair, reasonable, broad and balanced. There are many such bills that 
are pending in this Congress that would do much to advance the privacy 
agenda. Regrettably, they have been bottled up in committee. Among 
these bills are:
  H.R. 4380, a bill developed by the administration and introduced by 
Representative John LaFalce (D-NY). The legislation would inform and 
empower consumers in the area of financial privacy by giving them the 
choice of saying ``yes'' or ``no'' before any disclosure of their 
medical information that is gathered by financial institutions (which 
include insurers). It would also allow consumers who chose to take the 
initiative to stop the transfer of other personal financial information 
that would otherwise take place.
  H.R. 4585, introduced by Representative Jim Leach (R-Iowa) would also 
enhance financial privacy protections by giving consumers an 
affirmative ``opt in'' choice before their medical information could be 
shared by financial institutions. The bill also features a federal 
private right of action. It was marked up by the House Banking 
Committee on June 29, where it was approved 26-14.
  H.R. 1941, introduced by Representative Gary Condit (D-Calif.) would 
give consumers control over the use and disclosure of their medical 
records, and private health plans, physicians, insurers, employers, and 
others clear rules for how medical records should be handled. Consumers 
whose privacy was violated would have legal redress through a private 
right of action.
  H.R. 4611, introduced by Representative Edward Markey (D-Mass.) 
features the administration's proposals to strengthen privacy 
protections for use of Social Security numbers.
  H.R. 3321, introduced by Representative Markey and Representative 
Bill Luther (D-Minn.) would provide comprehensive privacy protections 
on the Internet.
  H.R. 4857, introduced by Representative Clay Shaw (R-Fla.) and Jerry 
Kleczka (D-Wisc.) was approved last week by the House Ways and Means 
Committee, and aims to curb identity theft with new rules restricting 
abuse of Social Security numbers. No floor action on the bill has yet 
been scheduled.
  By comparison, the bill on today's suspension calendar, the Privacy 
Commission Act (H.R. 4049) offers no solutions. Instead, it calls for a 
17-member commission to spend 18 months and $5 million to figure out 
what to do. There is nothing inherently wrong with studying privacy. 
But the majority party, in putting only this legislation on the floor 
during the 106th Congress, misses the main point, which is that we need 
to be legislating--not sitting on our hands and waiting for input from 
a

[[Page 20320]]

commission that may or may not provide additional worthwhile insights 
on crafting sound privacy policy in 2002.
  Nor do we need a commission to second-guess the medical privacy 
regulations that will soon be issued by the Department of Health and 
Human Services. There are some in the health industry who are hoping a 
commission will call for further delay in the date on when the HHS 
regulations take effect, and who will use the commission to raise 
hypothetical concerns about their workability and cost. Yet the 
regulations are already subject to a 2-year implementation timeline, 
giving stakeholders a long lead-time to prepare and put in place some 
initial necessary safeguards to protect consumers' medical records from 
misuse and abuse.
  I urge my colleagues to raise their voices in support of real privacy 
legislation that will provide comprehensive medical, financial, and 
Internet protections for all Americans.
  Mr. DAVIS of Virginia. Mr. Speaker, I rise today in support of H.R. 
4049, the Privacy Commission Act. I am proud to be an original sponsor 
of this bill, which would be a significant step forward toward creating 
a comprehensive framework for the protection of personal privacy.
  The Privacy Commission would be unique in Congress because of its 
comprehensive approach to dealing with the growing concern Americans 
have regarding the protection of their personal privacy--whether that 
be online privacy, identity theft, or the protection of health, 
medical, financial, and governmental records. The Commission would be 
charged with investigating the problem of protecting personal privacy 
in a broad-based fashion, across-the-industry spectrum. After an 
extensive 18 month investigation, the commission will then be required 
to recommend whether additional legislation is necessary, what specific 
proposals would be effective, and proposals for non-governmental 
privacy protection efforts as well.
  This bipartisan commission would be comprised of 17 members 
representing experts of various industries and organizations whose work 
impacts individual's personal privacy. Specifically, the commission 
would be representing federal, state, and local governments; business 
and industry groups; academics; consumer groups; financial services 
groups; public policy and advocacy groups; medical groups; civil 
liberties experts; and the media, though it is not limited to just 
these areas.
  Mr. Speaker, 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. The Privacy 
Commission would examine the entire spectrum of privacy issues and find 
solutions that will aggressively protect these growing concerns. I urge 
all my colleagues to vote in support of the Privacy Commission Act.
  Ms. SLAUGHTER. Mr. Speaker, I rise in opposition to H.R. 4049, the 
Privacy Commission Act.
  As my colleagues know, this legislation would establish a commission 
to study various aspects of privacy--financial, medical, electronic, 
and so on--and make recommendations to Congress. The 15 commission 
members would have 18 months to complete their work.
  My objections to this bill have little to do with its actual 
substance. If the majority prefers to study an issue rather than act 
upon it, they are welcome to do so. I am deeply disturbed, however, 
that they would deny those of us who wish to act the opportunity to 
offer amendments.
  In many cases, we know privacy does not exist, and we know how to 
provide the protections that American consumers are demanding. Just 
last week, the Institute for Health Freedom released a Gallup survey 
finding that 78 percent of those polled considered it very important 
that their medical records be kept confidential. Individuals are 
particularly concerned about their genetic privacy. Genetic information 
is perhaps the most personal information that can be learned about an 
individual, and can have enormous ramifications for their future. As a 
result, Americans are especially worried that their genetic information 
could fall into the wrong hands and be used to undermine, rather than 
advance, their best interests.
  I am proud to sponsor H.R. 2457, the Genetic Nondiscrimination in 
Health Insurance and Employment Act. As its title states, this 
legislation would prevent insurers and employers from using genetic 
information to discriminate against individuals. The bill has the 
support of dozens of organizations, as well as over 130 bipartisan 
cosponsors. It was developed with the review and input of all the 
stakeholders, including consumers, health care professionals, and 
providers. H.R. 2457 has been enthusiastically endorsed by the 
administration, and the President has called repeatedly for its 
passage.
  Nevertheless, this legislation languishes in committee without so 
much as a hearing. The majority has buried this reasonable, 
responsible, timely legislation in favor of establishing a commission 
that will, in this case, simply tell us what we already know.
  I have traveled all over the nation to discuss genetic discrimination 
issues. At every turn, I am approached by individuals who tell me that 
they would like to take a genetic test, but have decided not to do so 
because they are afraid the results will be obtained by their insurer 
or employer. I am contacted by doctors who say that their relationships 
with their patients are being damaged because patients are afraid to 
have notes about a genetic disorder in their medical records. I receive 
calls and letters from researchers who tell me that it is getting more 
difficult every year to recruit participants in genetic research.
  Congress has already waited too long to act on this issue. We cannot 
waste any more time by deferring to a commission that will not report 
for a year and a half. I urge my colleagues to vote against H.R. 4049, 
and to call for its consideration under regular order.
  Mr. DINGELL. Mr. Speaker, I rise in opposition to H.R. 4049, the 
``Privacy Commission Act.''
  We don't need a commission to study consumer privacy rights. 
Consumers either have the right to determine how personal information 
they gave others will be used, or they don't. In my view, consumers 
deserve this right. Spending 18 months studying privacy and $5 million 
of the taxpayers money will not bring us any closer to deciding this 
fundamental issue. Only Members of the Congress, not members of a study 
commission, can decide whether to protect consumer privacy.
  What consumers are demanding is a simple and clear statement from 
Congress that banks, insurance companies, securities firms, HMO's, and 
other entities cannot disseminate or use personal information in ways 
the consumer has not approved. That's not a complicated concept, 
although many who don't want to protect consumer privacy will maintain 
that it is. One hundred and thirty-eight of our colleagues are 
cosponsors of one such bill that we should have the opportunity to 
consider either as an amendment to the bill before us or on its own.
  That legislation, H.R. 2457, is sponsored by our colleague, Mrs. 
Slaughter, and prohibits genetic discrimination in determining 
eligibility for health insurance and employment. Polls show that more 
than 80 percent of those surveyed are afraid that genetic information 
could be used against them. One hundred and seventy-eight of our 
colleagues have signed a discharge petition to bring this matter to the 
floor for a vote. Outside medical professional groups, including the 
Director of the National Human Genome Research Institute, support the 
bill. The administration strongly support it, and the platforms of both 
major national parties include planks that call for legislation like 
H.R. 2457.
  Clearly, Members are ready to act on genetic privacy, yet the 
Republican House leadership says we can't. The chairman of the Commerce 
Committee has repeatedly rejected requests from Democratic Members to 
let the committee act on this important legislation. In fact, 
Republican leadership won't even permit an amendment prohibiting 
genetic discrimination to be offered to the matter before us.
  That's just plain wrong, and the Republican majority should not be 
allowed to cite passage of this meaningless commission bill as evidence 
that they have concerns for consumer privacy. If they truly were 
concerned about consumer privacy we'd be considering Mrs. Slaughter's 
bill, or others like it that are intended to legally protect consumer 
privacy, not just study it. At the very least, Members should have the 
right to amend this bill with proposals that provide consumers real and 
needed protection.
  Mr. Speaker, I urge my colleagues to vote ``no'' on H.R. 4049.
  Mr. WATTS of Oklahoma. Mr. Speaker today I rise in support of H.R. 
4049, the Privacy Commission Act. I commend the gentleman from 
Arkansas, Mr. Hutchinson, on this fine piece of legislation.
  Mr. Speaker, as we enter into this new millennium, the Internet has 
taken the American economy to unseen levels of prosperity. The Internet 
has contributed to a stock market which has reached unimaginable highs.
  However, with this amazing new medium, we must be cautious of the 
privacy of individuals. The Internet, this storehouse of financial, 
personal and medical information can be easily abused and unjustly 
destroy people's credit, reputation and security. America's families 
have a right to be concerned.'' This Congress

[[Page 20321]]

must take steps to assure families that their privacy will be protected 
in the modern age.
  This piece of legislation will create a bipartisan committee to study 
privacy and its protection. Mr. Speaker this legislation will take 
monumental steps in protecting individual privacy in the 21st Century. 
This commission will spend 18 months discussing the question of 
privacy, and find the answers to these questions.
  Mr. Speaker, I support this important piece of legislation and urge 
my colleagues to vote yes on H.R. 4049, the Privacy Commission Act.
  The SPEAKER pro tempore. 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. 4049, as amended.
  The question was taken.
  Mr. WAXMAN. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8, rule XX and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.

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