[Senate Report 105-367]
[From the U.S. Government Publishing Office]



105th Congress                                         Report
2d Session                       SENATE                105-367     

_______________________________________________________________________

                                     

                                                       Calendar No. 700



 
                 STATISTICAL CONSOLIDATION ACT OF 1998

                               __________

                              R E P O R T

                                 of the

                   COMMITTEE ON GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                                S. 1404

 TO ESTABLISH A FEDERAL COMMISSION ON STATISTICAL POLICY TO STUDY THE 
 REORGANIZATION OF THE FEDERAL STATISTICAL SYSTEM, TO PROVIDE UNIFORM 
    SAFEGUARDS FOR THE CONFIDENTIALITY OF INFORMATION ACQUIRED FOR 
  EXCLUSIVELY STATISTICAL PURPOSES, AND TO IMPROVE THE EFFICIENCY OF 
 FEDERAL STATISTICAL PROGRAMS AND THE QUALITY OF FEDERAL STATISTICS BY 
  PERMITTING LIMITED SHARING OF RECORDS AMONG DESIGNATED AGENCIES FOR 
              STATISTICAL PURPOSES UNDER STRONG SAFEGUARDS




  October 6 (legislative day, October 2), 1998.--Ordered to be printed

                        -----------------------------
  
                       U.S. GOVERNMENT PRINTING OFFICE
69-010                         WASHINGTON : 1998





                   COMMITTEE ON GOVERNMENTAL AFFAIRS

                   FRED THOMPSON, Tennessee, Chairman
WILLIAM V. ROTH, Jr., Delaware       JOHN GLENN, Ohio
TED STEVENS, Alaska                  CARL LEVIN, Michigan
SUSAN M. COLLINS, Maine              JOSEPH I. LIEBERMAN, Connecticut
SAM BROWNBACK, Kansas                DANIEL K. AKAKA, Hawaii
PETE V. DOMENICI, New Mexico         RICHARD J. DURBIN, Illinois
THAD COCHRAN, Mississippi            ROBERT G. TORRICELLI, New Jersey
DON NICKLES, Oklahoma                MAX CLELAND, Georgia
ARLEN SPECTER, Pennsylvania
             Hannah S. Sistare, Staff Director and Counsel
             Kristine I. Simmons, Professional Staff Member
         Sebastian O'Kelly, Minority Professional Staff Member
                 Leonard Weiss, Minority Staff Director
                       Lynn L. Baker, Chief Clerk
                                 ------                                

Subcommittee on Oversight of Government Management, Restructuring, and 
                        the District of Columbia

                    SAM BROWNBACK, Kansas, Chairman
WILLIAM V. ROTH, Jr., Delaware       JOSEPH I. LIEBERMAN, Connecticut
ARLEN SPECTER, Pennsylvania          MAX CLELAND, Georgia
                     Marie G. Wheat, Staff Director
      Laurie Rubenstein, Minority Staff Director and Chief Counsel
                    Kevin J. Landy, Minority Counsel
                      Esmeralda Amos, Chief Clerk




                            C O N T E N T S

                              ----------                              
                                                                   Page
  I. Purpose..........................................................1
 II. Background.......................................................1
III. Section-by-Section Analysis......................................3
 IV. Legislative History..............................................6
  V. Estimated Cost of Legislation....................................9
 VI. Evaluation of Regulatory Impact.................................10
VII. Changes in Existing Law.........................................11





                                                       Calendar No. 700

105th Congress                                                   Report
                                 SENATE

 2d Session                                                     105-367
_______________________________________________________________________



                 STATISTICAL CONSOLIDATION ACT OF 1998

                                _______
                                

  October 6 (legislative day, October 2), 1998.--Ordered to be printed

_______________________________________________________________________


Mr. Thompson, from the Committee on Governmental Affairs, submitted the 
                               following

                              R E P O R T

                         [To accompany S. 1404]

    The Committee on Governmental Affairs, to which was 
referred the bill (S. 1404) to establish a Federal Commission 
on Statistical Policy to study the reorganization of the 
Federal statistical system, to provide uniform safeguards for 
the confidentiality of information acquired for exclusively 
statistical purposes, and to improve the efficiency of Federal 
statistical programs and the quality of Federal statistics by 
permitting limited sharing of records among designated agencies 
for statistical purposes under strong safeguards, having 
considered the same, reports favorably thereon with amendments 
and recommends that the bill as amended do pass.

                               I. Purpose

    The purpose of S. 1404, the Statistical Consolidation Act 
of 1998, is to establish a Commission to study the 
reorganization of the federal statistical system and to allow 
federal agencies to share data for exclusively statistical 
purposes under uniform confidentiality safeguards.

                             II. Background

    Beginning with the first census of population mandated by 
the Constitution, the statistical infrastructure of the United 
States has grown significantly in size and scope. Today, there 
are 70 federal agencies involved in some aspect of data 
collection, analysis and dissemination, with total expenditures 
exceeding $3 billion annually. Yet despite the investment of 
resources, the federal statistical infrastructure is losing 
pace with our changing economy and society. Technological and 
scientific advances and the shift to an information-driven 
global economy require that our nation's statistical system be 
modernized to meet the needs of policy makers and other data 
users in the 21st century.
    The Statistical Consolidation Act is a first step toward 
updating the federal statistical system and improving the 
quality of government data. S. 1404 is intended to address 
duplication and inefficiency within the federal statistical 
system by establishing a Commission to study the current 
organization of federal statistical activities and recommend 
how the federal government's main statistical agencies--the 
Bureau of the Census, the Bureau of Economic Analysis, and the 
Bureau of Labor Statistics--and perhaps other statistical 
activities performed in and around the federal government can 
be consolidated into a single ``Federal Statistical Service''.
    Specifically, Title I of the bill establishes a 15-member 
commission, comprised of the Chief Statistician of OMB, a 
chairman and five members appointed by the President, four 
members appointed by the Speaker of the House, and four members 
appointed by the President Pro Tempore of the Senate.
    The functions of the Commission are to recommend how the 
Bureau of Labor Statistics, the Bureau of Economic Analysis, 
and the Bureau of the Census could be consolidated in a single 
``Federal Statistical Service'' by October 1, 2001; whether 
functions of other statistical agencies should be transferred 
to a Federal Statistical Service; and, whether decennial census 
functions should be delineated from other Census Bureau 
functions, and how such a delineation of functions might be 
achieved. The Commission must report to Congress on these 
recommendations within 18 months of enactment of this Act, and 
terminates three years after the enactment of this Act.
    If the Commission recommends consolidation of BLS, BEA and 
the Census Bureau in a Federal Statistical Service, the 
Commission's report must include legislation incorporating 
those recommendations.
    The Commission has also been tasked with conducting studies 
on all aspects of the Federal statistical infrastructure. As 
part of this duty, commissioners will review and make 
recommendations regarding the quality and timeliness of 
statistics; the relationship between the federal government and 
States, localities, other nations and international agencies 
with respect to the generation and dissemination of data; the 
interrelationship of information technology, statistical data 
and personal privacy; and, standards of accuracy for leading 
economic and social indicators. The Committee believes that 
improving the usefulness of social indicators, including 
marriage and divorce rates, will aid data users, both public 
and private, in evaluating how government policies affect the 
American family.
    Title II of the bill is entitled the ``Statistical 
Confidentiality Act.'' The title has the dual purpose of 
shoring up confidentiality standards while allowing eight 
agencies to share statistical datafor purely statistical 
purposes. The agencies are: the Census Bureau, the Bureau of Labor 
Statistics, the Bureau of Economic Analysis, the National Agricultural 
Statistical Service, the Energy Information Administration, the 
National Council of Educational Statistics, the National Council of 
Health Statistics, and the National Science Foundation. By covering 
these agencies under uniform confidentiality safeguards, the 
legislation strengthens protections at the Bureau of Labor Statistics, 
the National Science Foundation and the Energy Information 
Administration, which do not currently have strong legal protections.
    While the Paperwork Reduction Act gives OMB's Office of 
Statistical Policy the authority to make data sharing 
agreements among agencies, it is done on a case-by-case basis. 
The intent of this title is to streamline and facilitate such 
interagency exchanges and to aid interagency cooperation with 
regard to statistical data while maintaining confidentiality. 
The Committee expects this title to lead to the consolidation 
of government surveys where possible and a corresponding 
decrease in the burden that responding to such surveys imposes 
on the public.

                    III. Section-by-Section Analysis

Section 1. Short title; table of contents

    This section states the short title of the bill and lists 
the table of contents.

Section 2. Findings

    This section states the findings of Congress that 
statistical information is important in developing national 
priorities and policies and that the Federal government should 
coordinate the gathering and ensure the confidentiality of 
statistics.

Section 3. Sense of Congress

    This section states the importance of efficiency and 
integration with regards to statistical information, the 
importance of the role of the Chief Statistician, and the 
necessity for a distinction between statistical forms clearance 
and regulatory forms clearance.

           title i--federal commission on statistical policy

Section 101. Establishment

    A Commission to be known as the ``Federal Commission on 
Statistical Policy'' is to be established. The Commission will 
be made up of the Chief Statistician of the Office of 
Management and Budget, as well as a Chairman and five members 
appointed by the President, and four members appointed by the 
Speaker of the House, and four members appointed the President 
Pro Tempore of the Senate. Members are qualified to serve on 
the Commission by virtue of experience relating to the Bureau 
of the Census, the Bureau of Economic Analysis, or the Bureau 
of Labor Statistics or if they have expertise relating to 
organizational reorganization, State sources and uses of 
statistical information, statistical analysis, or management of 
complex organizations.

Section 102. Duties of the Commission

    The purpose of the Commission is to make recommendations on 
how the Federal statistical system can be reorganized, and 
whether the functions of the numerous statistical bureaus and 
offices in the Federal government can be consolidated. The 
recommendations must be completed within 18 months of the 
enactment of the Act and will be submitted to Congress and the 
President in the form of a written report and draft 
legislation.
    Within 15 days of receiving the report, the President will 
either approve or disapprove the report. If the report is 
approved, it will be submitted to Congress on the day following 
approval. If the President takes no action within 15 days, the 
report will be submitted to Congress at the end of the 15-day 
period. If the President disapproves of the report, he must 
give his specific objections and/or his suggested changes to 
the Commission. Based upon these suggestions, the Commission 
may make changes to the report before submitting it to 
Congress. The report must be sent to Congress within ten days 
of receiving the President's disapproval.
    If the report makes recommendations on consolidating the 
statistical functions of the Federal government, including the 
Bureau of Labor Statistics, the Census Bureau and the Bureau of 
Economic Analysis, into one Federal Statistical Service, the 
report will also contain draft legislation incorporating these 
recommendations.
    The Commission will also be responsible for conducting 
studies on all matters relating to the Federal statistical 
infrastructure.

Section 103. Powers

    The Commission has the authority to hold hearings, obtain 
testimony, and receive evidence for the purpose of carrying out 
its purpose.

Section 104. Commission procedures

    The Commission shall meet at the call of the Chair or a 
majority of members. The Commission shall adopt any 
recommendation by a vote of a majority of its members; however, 
the consolidation of BLS, BEA, and Census into the Federal 
Statistical Service will take place unless a majority votes 
against the consolidation and certifies to Congress that the 
consolidation would not improve the statistical system.

Section 105. Personnel matters

    Members of the Commission will receive basic pay for level 
IV of the Executive Schedule for each day spent working on the 
Commission. All travel expenses will be paid in accordance with 
the appropriate sections of the United States Code. Staff, 
including an Executive Director, may be appointed and paid as 
appropriate.

Section 106. Other administrative provisions

    This section allows the Commission to use the US mail, 
printing and binding services as other agencies. The Commission 
may also request administrative support and utilize 
consultants.

Section 107. Termination

    The Commission will terminate three years after the 
enactment of this Act.

Section 108. Authorization of appropriations

    Necessary funding is authorized to be appropriated for the 
Commission.

TITLE II--EFFICIENCY AND CONFIDENTIALITY OF FEDERAL STATISTICAL SYSTEMS

Section 201. Short title

    This section states the short title of this section.

Section 202. Findings and purposes

    The section stating findings and purposes reaffirms 
policies that have been applied to confidential data by 
statistical agencies for many decades and extends these 
policies to protect confidentiality while permitting the 
sharing of information for exclusively statistical purposes. It 
recognizes that credible protection of confidentiality is 
essential to ensure the level of cooperation that produces 
accurate and timely responses to statistical inquiries.

Section 203. Definitions

    Section 3 establishes definitions that determine the scope 
of the Act.

Section 204. Statistical data centers

    This section establishes selected agencies whose purposes 
are predominantly statistical/analytical as ``Statistical Data 
Centers'' and provides authority for dealing with any future 
reorganizations affecting a Statistical Data Center designated 
by this Act. If an agency listed above is eliminated or has its 
mission substantially changed in a reorganization, the Director 
of OMB may designate an agency to serve as a successor 
Statistical Data Center after a public comment period.

Section 205. Statistical data center responsibilities

    This section assigns general responsibilities to the 
agencies designated as Statistical Data Centers. It 
specifically charges them to observe ``fair information 
practices,'' a set of policies elaborated and endorsed in 
reports of both the Privacy Protection Study Commission and the 
Paperwork Commission.

Section 206. Confidentiality of information

    A uniform confidentiality policy is established consistent 
with the Paperwork Reduction Act (PRA) for data acquired for 
exclusively statistical purposes, by prohibiting disclosures of 
such data for nonstatistical purposes and limiting disclosures 
for statistical purposes. Heads of Statistical Data Centers are 
required to resolve by rule any questions concerning whether 
information may be disclosed prior to the collection of that 
information.

Section 207. Coordination and oversight

    The Director of the Office of Management and Budget shall 
coordinate and oversee confidentiality and disclosure policies. 
These shall include any disclosure agreement, results of any 
review of information security, the results of any similar 
review taken on the initiative of the Statistical Data Center 
or similar agency. A summary of these reports and any action 
taken shall be made by the Office of Management and Budget and 
be given to Congress in the annual report of that office.

Section 208. Implementing regulation

    Rulemaking is authorized to implement the Act. OMB, 
Statistical Data Centers, and other agencies that may provide 
data to one or more Centers under this Act are authorized to 
establish formal policies for such exchanges consistent with 
their mandates, as long as such rules are also consistent with 
the Paperwork Reduction Act.

Section 209. Conforming amendments and proposed changes in law

    This section lists all the necessary conforming amendments 
and changes to current law.

Section 210. Effect on other laws

    The Director of OMB may direct an agency to make available 
to another agency, or an agency may make available to another 
agency, information obtained pursuant to an information 
collection request if the disclosure is consistent with 
applicable law. Nothing in this Act abrogates applicable state 
law regarding the confidentiality of data collected by the 
states. The disclosure standards in Section 206 shall apply in 
lieu of the general disclosure standards of the Freedom of 
Information Act.

                        IV. Legislative History

    S. 1404, the Federal Statistical System Act of 1997 was 
introduced on November 7, 1997 by Senator Brownback (for 
himself and Senators Moynihan, Kerrey, and Thompson). S. 1404 
was referred to the Committee on Governmental Affairs and was 
subsequently referred to the Subcommittee on Oversight of 
Government Management, Restructuring, and the District of 
Columbia.
    On April 9, 1997, the Subcommittee held a hearing to 
examine the ``Role of the Department of Commerce in Federal 
Statistical Gathering, Analysis and Dissemination, and 
Opportunities for Reform and Consolidation.'' The hearing 
examined S. 144, The Commission to Study the Federal 
Statistical System Act of 1997, and explored opportunities for 
reform and consolidation within the statistical agencies of the 
Federal government. The hearing was chaired by Senator Sam 
Brownback, Chairman of the Subcommittee on Oversight.
    The following witnesses presented testimony: The Honorable 
Daniel Patrick Moynihan, U.S. Senator (D-NY); the Honorable 
Stephen Horn, U.S. Representative (R-CA); Vincent P. Barabba, 
General Motors Corporate Strategy and Knowledge Department; 
Janet Norwood, Senior Fellow of The Urban Institute; Maurine A. 
Haver, Chair of the Statistics Committee of the National 
Association of Business Economists; Leonard Nakamura, Economic 
Adviser of the Federal Reserve Bank of Philadelphia; and L. Nye 
Stevens, Director of Federal Management and Workforce Issues of 
the General Government Division of the U.S. General Accounting 
Office.
    Senator Moynihan testified about his legislation, S. 144. 
This legislation would establish a commission of 13 
Presidential and Congressional appointees, with expertise in 
fields such as actuarial science, finance and economics, to 
recommend whether statistical agencies should be consolidated. 
Senator Moynihan referred to the consolidation of government 
statistical activities in Canada and Great Britain and 
emphasized the need to do the same here in the U.S. Federal 
government. He also stressed the need for caution in 
streamlining these statistical functions because of the 
potential consequences for personal privacy, as seen in the 
unauthorized accessibility of the Social Security Personal 
Earnings and Benefits Estimate Statements (PEBES) via the 
Internet.1 The Commission approach would allow a 
careful evaluation of privacy issues to occur as part of any 
reorganization of the federal statistical infrastructure.
---------------------------------------------------------------------------
    \1\ Prepared statement of the Honorable Daniel Patrick Moynihan, 
U.S. Senator (D-NY), before the Subcommittee on the Oversight of 
Government Management, Restructuring, and the District of Columbia. 
Senate Hearing 105-170, ``Role of the Department of Commerce in Federal 
Statistical Gathering, Analysis, and Dissemination, and Opportunities 
for Reform and Consolidation.'' April 9, 1997. Official hearing record, 
page 6.
---------------------------------------------------------------------------
     Congressman Horn proposed consolidating the Bureau of 
Census, the Bureau of Labor of Statistics and the Bureau of 
Economic Analysis into a Federal statistical service which 
would operate as an independent agency. He introduced 
legislation, H.R. 2521, the Statistical Consolidation Act of 
1995, which would have established this consolidated service. 
He also introduced H.R. 3924 which would permit statistical 
data sharing among certain Federal agencies. He emphasized that 
reliable government statistical data is integral to decision 
making throughout the United States and that this function 
should be removed from any political influences within the 
Cabinet departments. He stated his bill would ensure the 
political independence of this data. He also expressed the need 
for uniform confidentiality standards for statistical data in 
order to allow government agencies to share the data. Finally, 
he pointed to the possible savings his consolidation proposal 
would achieve.
    Mr. Barabba testified that the current statistical system 
must move from a ``predict-and-prepare mentality'' to a 
``sense-and-respond mentality.'' He pointed to the need for 
shared data in order to have consistent statistical service. In 
addition, he emphasized that the data must be useful and that 
consumers of the data must have a voice in determining the 
relevance of the statistical data produced by the federal 
government. He expressed his support for a commission because 
much in the federal government's statistical programs needs to 
be sorted out before consolidation can take place. In his oral 
testimony, he stated:

        * * * [T]he worst thing to do is to take a set of 
        agencies that were designed for one era and mush them 
        together without understanding what their new 
        assignment is. So the notion of a commission to really 
        sort out the needs of society, not just the needs of 
        government, to design a system based on those needs 
        would be very important.2
---------------------------------------------------------------------------
    \2\ Oral testimony of Vincent P. Barabba before the Subcommitee on 
the Oversight of Government Management, Restructuring, and the District 
of Columbia. Senate Hearing 105-170, ``Role of the Department of 
Commerce in Federal Statistical Gathering, Analysis, and Dissemination, 
and Opportunities for Reform and Consolidation.'' April 9, 1997. 
Official hearing record, page 13.

 Finally, Mr. Barabba stressed that we need systemic change 
throughout Federal statistical programs rather than reforming 
individual statistical programs.
    Ms. Norwood underscored the need for objectivity in any 
federal statistical agency. She echoed Mr. Barabba's statement 
that there must be organizational change and a move toward 
centralizing the statistical system. She testified that the 
consolidation should be limited to the Census Bureau, the 
Bureau of Labor Statistics and the Bureau of Economic Analysis. 
She added that the new agency must be responsible for 
statistical quality standards, for definition standards and for 
representing the system abroad.
    Ms. Haver testified that a single statistical agency would 
address many of the problems currently facing the system today. 
Currently, the United States lacks statistical detail in 
services and high-tech industries. In addition, there is 
currently a problem with the response rates from businesses who 
are asked to provide information. This is fueled by concerns 
over confidentiality and the existence of statistical agencies 
as just one component of larger agencies with enforcement 
responsibilities. She testified that businesses would be more 
responsive if there was an independent statistical agency 
requesting information. She also said that within a single 
independent agency, there would be a single reporting form as 
opposed to multiple forms which ask for the same information. 
Finally, she testified that any consolidation must include data 
sharing, and that data sharing alone would not realize all the 
advantages and efficiencies of one consolidated agency.
    Mr. Nakamura outlined the various inaccuracies in current 
statistical data. The inaccurate measurement of inflation 
overall has worsened since the 1970s where, for example, the 
Consumer Price Index for airfares, food at home and medical 
care has been overstated. Over the past three years, the U.S. 
economy may have been growing twice as fast as our real Gross 
Domestic Product growth rate figures indicate. He concluded 
that measuring inflation and economic growth requires on-going 
research and not just a change in procedures.
    Mr. Stevens provided GAO's assessment of the quality of 
statistical data and stated that overall the quality is very 
good, but problems remain. He pointed to some difficulty with 
data sharing due to statutory restrictions and some problems 
with the international transactions of the U.S. economy and the 
way they are measured. He also outlined how the decentralized 
nature of the current statistical systems lends itself to 
inefficiencies and pointed to the benefits of consolidation as 
seen in the Canadian model. Finally, he said that he was not 
aware of any reason that would prevent the Census and the 
Bureau of Economic Analysis from performing their missions if 
they were removed from the Commerce Department. He added that 
the Commerce Department has historically not managed on the 
basis of any unifying mission. Under the Commerce Department, 
the Census and the BEA must compete for funding with unrelated 
functions such as fisheries management and weather forecasting.

                            Committee Action

    S. 1404 was reported out of the Subcommittee by Senator 
Brownback, Chairman of the Senate Subcommittee on Oversight of 
Government Management, Restructuring, and the District of 
Columbia on September 23, 1998. The Senate Governmental Affairs 
Committee held a mark-up on September 24, 1998. Chairman 
Thompson offered an amendment in the nature of a substitute on 
behalf of himself and Senators Brownback and Lieberman which 
was the result of bipartisan discussions on the bill. In 
addition to making technical changes to S. 1404, the amendment 
sunsets the Federal Commission on Statistical Policy three 
years after the date of enactment. It also allows the President 
to provide comments and suggestions on the commission's 
recommendations before they are submitted to Congress. The 
amendment clarifies that the commission has the option of 
recommending against a consolidation of statistical agencies if 
the commission finds that a consolidation would not improve the 
federal statistical system, and it provides expedited rules for 
Congress when considering the commission's recommendations. 
Finally, the amendment changes the short title of S. 1404 to 
the ``Statistical Consolidation Act of 1998''. The Thompson 
amendment in the nature of a substitute passed on a voice vote.
    Senator Levin offered an amendment to strike the expedited, 
or ``fast track'', procedures, arguing that the twenty days 
allotted for committee review of legislation implementing the 
commission's recommendations was inadequate. He also argued 
that the prohibition on any amendment that was not germane was 
excessively restrictive, and that the normal legislative 
process was preferable to the use of expedited procedures. 
Senator Brownback countered that the fast track procedures were 
necessary to ensure timely congressional consideration of the 
commission's recommendations and to prevent the legislation 
implementing those recommendations from getting stalled in 
Congress. He added that germane amendments would be in order, 
and that S. 1404 as amended by Senator Thompson would permit 
the President an opportunity to review and comment on the 
commission's recommendations before they are submitted to 
Congress. Senator Thompson echoed Senator Brownback's comments. 
The Levin amendment passed by a vote of six yeas and three 
nays. Senators Domenici (by proxy), Cochran, Nickles, Levin, 
Akaka and Cleland voted in favor of the Levin Amendment; 
Senators Roth (by proxy), Brownback and Thompson voted against 
it.
    On September 25, 1998, S. 1404 as amended was ordered 
reported favorably by a vote of nine yeas and zero nays: 
Senators Brownback, Cochran, Nickles, Levin, Lieberman, Akaka, 
Torricelli, Cleland, and Thompson voted ``aye'', and Senators 
Roth and Domenici voted ``aye'' by proxy.

                   V. Estimated Costs of Legislation

                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 29, 1998.
Hon. Fred D. Thompson,
Chairman, Committee on Governmental Affairs,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1404, the 
Statistical Consolidation Act of 1998.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Mark Hadley.
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

               congressional budget office cost estimate

S. 1404--Statistical Consolidation Act of 1998

    S. 1404 would establish a three-year commission to study 
consolidating the statistical functions of various government 
agencies, including the Bureau of Labor Statistics, the Bureau 
of the Census, and the Bureau of Economic Analysis. The 
legislation also would allow the identification of the 
individual providers of such information. Violators would be 
subject to imprisonment and fines.
    Based on the spending of similar commissions, CBO estimates 
that implementing S. 1404 would cost about $2 million over the 
1999-2001, period, assuming appropriation of the necessary 
amounts. The legislation also would require the Office of 
Management and Budget to issue regulations and submit reports 
to the Congress. CBO estimates that any associated costs would 
be less than $500,000 a year, subject to the availability of 
appropriated funds.
    Enacting S. 1404 would allow the federal government to 
pursue criminal cases that it otherwise would not be able to 
prosecute. CBO expects that the government probably would not 
pursue many such cases, so we estimate that any increase in 
federal costs for law enforcement, court proceedings, or prison 
operations would not be significant. Any such additional costs 
would be subject to the availability of appropriated funds.
    Because those convicted under S. 1404 would be subject to 
criminal fines, the federal government might collect additional 
fines if the bill is enacted. Collections of such fines are 
recorded in the budget as governmental receipts (revenues), 
which are deposited in the Crime Victims Fund and spent in the 
following year. Because the bill could affect direct spending 
and receipts, pay-as-you-go procedures would apply. CBO 
expects, however, that any additional collections from enacting 
S. 1404 would be negligible, because of the small number of 
cases likely to be involved. Because any increase in direct 
spending would equal the fines collected with a one-year lag, 
the additional direct spending would also be negligible.
    S. 1404 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 Mark Hadley. This estimate was 
approved by Robert A. Sunshine, Deputy Assistant Director for 
Budget Analysis.

                  VI. Evaluation of Regulatory Impact

    Pursuant to the requirement of paragraph 11(b) of rule XXVI 
of the Standing Rules of the Senate, the Committee has 
considered the regulatory and paperwork impact of S. 1404. The 
legislation contributes to the economical operation of federal 
government activities by establishing a Commission to recommend 
ways in which the federal statistical infrastructure can be 
consolidated and streamlined without adversely impacting the 
quality of data. The Committee finds that such a consolidation 
would reduce the redundancy and burden of government surveys on 
the public, including the time and paperwork involved in 
responding to the surveys, while simplifying data collection 
activities.
    In addition, this legislation will provide uniform 
confidentiality protections and permit sharing of data among 
designated statistical agencies, which will position agencies 
to improve the overall cost-effectiveness of their programs. 
Data sharing could lead to the elimination of errors in 
existing data, consolidation of overlapping programs, 
reductions in reporting burden for the public, and 
opportunities to improve data quality without incurring 
additional costs.

                      VII. Changes in Existing Law

    In accordance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, the Committee has determined that 
it is necessary to dispense with the requirements of this 
subsection to expedite the business of the Senate.

                                
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