[House Report 111-239]
[From the U.S. Government Publishing Office]


111th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    111-239

======================================================================



 
                GOVERNMENT INFORMATION TRANSPARENCY ACT

                                _______
                                

 July 30, 2009.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

   Mr. Towns, from the Committee on Oversight and Government Reform, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 2392]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Oversight and Government Reform, to whom was 
referred the bill (H.R. 2392) to improve the effectiveness of 
the Government's collection, analysis, and dissemination of 
business information by using modern interactive data 
technologies, having considered the same, report favorably 
thereon with an amendment and recommend that the bill as 
amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     3
Background and Need for Legislation..............................     3
Legislative History..............................................     4
Section-By-Section...............................................     4
Explanation of Amendments........................................     6
Committee Consideration..........................................     6
Rollcall Votes...................................................     6
Application of Law to the Legislative Branch.....................     6
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................     6
Statement of General Performance Goals and Objectives............     6
Constitutional Authority Statement...............................     6
Federal Advisory Committee Act...................................     6
Unfunded Mandates Statement......................................     7
Earmark Identification...........................................     7
Committee Estimate...............................................     7
Budget Authority and Congressional Budget Office Cost Estimate...     7
Changes in Existing Law Made by the Bill, as Reported............     8
  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Government Information Transparency 
Act''.

SEC. 2. DATA STANDARD REQUIREMENTS.

  (a) Requirement.--The Director of the Office of Management and Budget 
shall adopt a single data standard for the collection, analysis, and 
dissemination of business and financial information for use by private 
sector entities in accordance with section 3 for information required 
to be reported to the Federal Government, and a single data standard 
for use by agencies within the Federal Government in accordance with 
section 4 for Federal financial information.
  (b) Characteristics of Data Standards.--The single data standards 
required by subsection (a) shall--
          (1) be common across all agencies, to the maximum extent 
        practicable;
          (2) be a widely accepted, open source, non-proprietary, 
        searchable, computer-readable format for business and financial 
        data;
          (3) be consistent with and implement--
                  (A) United States generally accepted accounting 
                principles or Federal financial accounting standards 
                (as appropriate);
                  (B) industry best practices; and
                  (C) Federal regulatory requirements;
          (4) improve the transparency, consistency, and usability of 
        business and financial information; and
          (5) be capable of being continually upgraded to be of maximum 
        use as technologies and content evolve over time.

SEC. 3. IMPLEMENTATION OF SINGLE DATA STANDARD FOR PRIVATE SECTOR.

  (a) OMB Guidance.--Not later than 180 days after the date of the 
enactment of this Act, the Director of the Office of Management and 
Budget shall issue guidance to agencies on the use and implementation 
of the single data standard required by section 2 for information 
required to be reported to agencies by the private sector.
  (b) Agency Requirements.--
          (1) Requirement.--To the maximum extent practicable and 
        consistent with the guidance provided by the Office of 
        Management and Budget under subsection (a), the head of each 
        agency shall require the use of the single data standard 
        required by section 2 for business and financial information 
        reported to the agency by private sector companies.
          (2) Implementation.--The head of the agency shall begin 
        implementing the requirement of paragraph (1) within one year 
        after the date of the enactment of this Act.

SEC. 4. IMPLEMENTATION OF SINGLE DATA STANDARD FOR FEDERAL GOVERNMENT.

  (a) OMB Development.--Not later than 1 year after the date of the 
enactment of this Act, the Director of the Office of Management and 
Budget shall develop the single data standard required by section 2 for 
use by agencies within the Federal Government for Federal financial 
information.
  (b) OMB Guidance.--Not later than 18 months after the date of the 
enactment of this Act, the Director shall issue guidance to agencies on 
the use and implementation of the single data standard developed under 
subsection (a).

SEC. 5. PUBLIC ACCESS TO DATA.

  The head of each agency shall ensure that information collected using 
the single data standards required under this Act is accessible to the 
general public in that format to the extent permitted by law.

SEC. 6. REPORT.

  Within one year after the date of the enactment of this Act, the 
Director of the Office of Management and Budget shall submit to the 
Committee on Oversight and Government Reform of the House of 
Representatives and the Committee on Homeland Security and Governmental 
Affairs of the Senate a report on the status of the implementation of 
this Act.

SEC. 7. DEFINITIONS.

  In this Act:
          (1) Agency.--The term ``agency'' means any executive 
        department, military department, Government corporation, 
        Government controlled corporation, independent establishment, 
        or other establishment in the executive branch of the 
        Government (including the Executive Office of the President), 
        or any independent regulatory agency, but does not include--
                  (A) the Government Accountability Office;
                  (B) the Federal Election Commission;
                  (C) the governments of the District of Columbia and 
                of the territories and possessions of the United 
                States, and their various subdivisions; or
                  (D) Government-owned contractor-operated facilities, 
                including laboratories engaged in national defense 
                research and production activities.
          (2) Executive department, military department, government 
        corporation, government controlled corporation, independent 
        establishment.--The terms ``Executive department'', ``military 
        department'', ``Government corporation'', ``Government 
        controlled corporation'', and ``independent establishment'' 
        have the meanings given those terms by chapter 1 of title 5, 
        United States Code.
          (3) Independent regulatory agency.--The term ``independent 
        regulatory agency'' has the meaning given that term by section 
        3502(5) of title 44, United States Code.

                          PURPOSE AND SUMMARY

    H.R. 2392, the Government Information Transparency Act, was 
introduced by Rep. Darrell Issa on May 13, 2009. The purpose of 
H.R. 2392 is to improve the quality, practicality, and 
transparency of federal business and financial information by 
requiring the use of single data standards for the collection, 
analysis, and dissemination of that information.
    H.R. 2392 directs the Office of Management and Budget (OMB) 
to adopt a single data standard for the collection, analysis, 
and dissemination of business and financial information 
reported to federal agencies. The bill also requires OMB to 
develop a single data standard for the reporting of federal 
financial information. Both standards are subject to the same 
requirements, and it is expected that they will be very similar 
with only minor differences. The bill also requires the head of 
federal agencies to make information collected using the single 
data standard available to the general public in that format, 
to the extent permitted by law.

                  BACKGROUND AND NEED FOR LEGISLATION

    Openness and accountability are deeply rooted in the U.S. 
Government, so much so that it is written into the Constitution 
that the Congress keep a record of its activities and make it 
available to the general public. To this end, the Congress has, 
over the years, enacted a number of laws requiring a variety of 
federal information to be made available to the public. Since 
its passage in 1966, the Freedom of Information Act (FOIA) has 
been a cornerstone of these efforts. Additionally, there are 
numerous federal laws requiring the public disclosure of an 
array of federal information including, but not limited to, the 
Ethics in Government Act, the Federal Funding Accountability 
and Transparency Act, and the Honest Leadership and Open 
Government Act.
    While all of these open government laws improve 
transparency and accountability, the information and data they 
produce, whether it be because of format, venue, or sheer 
volume, is not always useful. As it currently stands, a variety 
of federal business and financial information is available to 
the public in a number of different formats and places. 
Although the Internet has greatly improved the accessibility of 
this information, accessibility alone does not promote 
accountability. In order to be an efficient and effective 
resource for both the general public and the federal government 
itself, federal business and financial information must be made 
available in a standard and useful way so that data is more 
easily manipulated, searched, and shared.
    The Government Information Transparency Act directs OMB to 
adopt single data standards for the collection, analysis, and 
dissemination of federal business and financial information. 
H.R. 2392 is intended to improve the transparency, consistency, 
and usability of federal business and financial information.

                          LEGISLATIVE HISTORY

    The Subcommittee on Domestic Policy held the hearing, TARP 
Oversight: Assessing Treasury's Efforts to Prevent Waste and 
Abuse of Taxpayer Funds (March 11, 2009).
    The witnesses were Neel Kashkari, Acting Interim Assistant 
Secretary for Financial Stabilization, Department of Treasury; 
Professor Anthony B. Sanders, W.P. Carey School of Business, 
Arizona State University; Stephen Horne, Vice President of 
Master Data Management and Integration Services, Dow Jones & 
Co.; Mark Bolgiano, President and CEO, XBRL U.S., Inc.; Neil 
Barofsky, Special Inspector General for the Troubled Assets 
Relief Program; and Richard Hillman, Managing Director of 
Financial Markets and Community Investment, Government 
Accountability Office.
    The Committee on Oversight and Government Reform held the 
hearing, Preventing Stimulus Waste and Fraud: Who are the 
Watchdogs? (March 19, 2009).
    The witnesses were Earl Devaney, Chairman, Recovery 
Accountability and Transparency Board; William G. Holland, 
Illinois Auditor General; David P. Gragan, Chief Procurement 
Officer, District of Columbia; Jerome Heer, Founding Member, 
Association of Local Government Auditors; and Jerry Brito, 
Senior Research Fellow, Mercatus Center at George Mason 
University.
    H.R. 2392 was introduced by Rep. Darrell Issa on May 13, 
2009, and referred to the Committee on Oversight and Government 
Reform. The Committee held a business meeting on June 4, 2009, 
and ordered the bill to be reported favorably, as amended, by 
voice vote. The section-by-section analysis below reflects the 
bill as amended by the Committee.

                           SECTION-BY-SECTION

Sec. 1. Short title

    The short title of the bill is the Government Information 
Transparency Act.

Sec. 2. Data standard requirements

    Subsection (a) directs the OMB to adopt a single data 
standard for the collection, analysis, and dissemination of 
business and financial information for private-sector entities 
already required to report such information to the federal 
government, and a single data standard for use by agencies 
within the federal government to report federal financial 
information. The Committee's intent is not to change what is 
being reported to or by the federal government, only how it is 
reported.
    Subsection (b) lists the requirements for the single data 
standard. Specifically, it stipulates that the standard be: (1) 
common across all agencies, to the maximum extent practicable; 
(2) widely accepted, open source, non-proprietary, searchable, 
and computer-readable; and (3) consistent with (A) U.S. 
generally accepted accounting principles or federal financial 
accounting standards, as applicable; (B) industry best 
practices; and (C) federal regulatory requirements. Moreover, 
this subsection also requires that the single data standard (4) 
improve the transparency, consistency, and usability of 
business and financial information; and (5) be capable of being 
continually upgraded as technologies and content evolve over 
time.

Sec. 3. Implementation of single data standard for private sector

    Subsection (a) directs OMB to issue guidance to agencies on 
the use and implementation of a single data standard for 
information required to be reported to federal agencies by the 
private sector within 180 days of enactment.
    Subsection (b) requires the head of each agency to (1) 
require the use of the single data standard for business and 
financial information reported to the agency by private sector 
companies; and (2) begin implementing that standard within one 
year of enactment.

Sec. 4. Implementation of single data standard for Federal Government

    Subsection (a) directs OMB to develop the single data 
standard for use by agencies within the federal government for 
federal financial information within one year of enactment.
    Subsection (b) directs OMB to issue guidance to agencies 
within the federal government on the use and implementation of 
the single data standard within 18 months of enactment.

Sec. 5. Public access to data

    This section directs the head of each agency to make 
information collected using the single data standard accessible 
to the general public in that format to the extent permitted by 
law.

Sec. 6. Report

    This section requires OMB to report to the House Committee 
on Oversight and Government Reform and the Senate Committee on 
Homeland Security and Governmental Affairs on the status of the 
implementation of the Act within one year of enactment.

Sec. 7. Definitions

    This section offers several definitions pertinent to the 
Act.
    Subsection (1) defines ``agency'' as any executive 
department, military department, Government corporation, 
Government controlled corporation, independent establishment, 
or other establishment in the executive branch of the 
Government (including the Executive Office of the President), 
or any independent regulatory agency, excluding: (A) the 
Government Accountability Office; (B) the Federal Election 
Commission; (C) the governments of the District of Columbia and 
of the territories and possessions of the United States, and 
their various subdivisions; and (D) Government-owned 
contractor-operated facilities, including laboratories engaged 
in national defense research and production activities.
    Subsection (2) defines ``Executive department'', ``military 
department'', ``Government corporation'', ``Government 
controlled corporation'', and ``independent establishment'' as 
having the meanings given those terms by chapter 1 of title 5, 
United States Code.
    Subsection (3) defines ``independent regulatory agency'' as 
having the meaning given that term by section 3502(5) of title 
44, United States Code.

                       EXPLANATION OF AMENDMENTS

    Reps. Towns and Issa offered an amendment in the nature of 
a substitute, which was adopted by voice vote. The section-by-
section analysis in this report describes the content of that 
amendment.

                        COMMITTEE CONSIDERATION

    On Thursday, June 4, 2009, the Committee met in open 
session and favorably ordered H.R. 2392, as amended, to be 
reported to the House by a voice vote.

                             ROLLCALL VOTES

    No rollcall votes were held.

              APPLICATION OF LAW TO THE LEGISLATIVE BRANCH

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch where the bill relates to terms and conditions of 
employment or access to public services and accommodations. The 
bill does not relate to employment or access to public services 
and accommodations.

  STATEMENT OF OVERSIGHT FINDINGS AND RECOMMENDATIONS OF THE COMMITTEE

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the descriptive portions of 
this report, including the need to improve transparency and the 
usability of federal business and financial information.

         STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives are reflected in the descriptive portions 
of this report, including improving the transparency, 
consistency, and usability of federal business and financial 
information.

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Under clause 3(d)(1) of rule XIII of the Rules of the House 
of Representatives, the Committee must include a statement 
citing the specific powers granted to Congress to enact the law 
proposed by H.R. 1387. Article I, Section 8, Clause 18 of the 
Constitution of the United States grants Congress the power to 
enact this law.

                     FEDERAL ADVISORY COMMITTEE ACT

    The Committee finds that the legislation does not establish 
or authorize the establishment of an advisory committee within 
the definition of 5 U.S.C. App., Section 5(b).

                      UNFUNDED MANDATES STATEMENT

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandates Reform Act, P.L. 104-4) requires a statement on 
whether the provisions of the report include unfunded mandates. 
In compliance with this requirement the Committee has received 
a letter from the Congressional Budget Office included herein.

                         EARMARK IDENTIFICATION

    H.R. 2392 does not include any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9(e) or 9(f) of rule XXI.

                           COMMITTEE ESTIMATE

    Clause 3(d)(2) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
H.R. 2392. However, clause 3(d)(3)(B) of that rule provides 
that this requirement does not apply when the Committee has 
included in its report a timely submitted cost estimate of the 
bill prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act.

     BUDGET AUTHORITY AND CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause 3(c)(3) of rule XIII of the Rules of 
the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has received 
the following cost estimate for H.R. 2392 from the Director of 
the Congressional Budget Office:
                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 14, 2009.
Hon. Edolphus Towns,
Chairman, Committee on Oversight and Government Affairs,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2392, the 
Government Information Transparency Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 2392--Government Information Transparency Act

    This legislation would require the Office of Management and 
Budget (OMB) to adopt a single standard within the federal 
government for reporting financial and business information. 
Such information is currently collected and reported by 
government agencies using a variety of technologies, accounting 
standards, and formats. Generally, H.R. 2392 would expand the 
ongoing efforts of OMB, the Financial Management Service, and 
the General Services Administration to standardize federal 
agencies' business processes, financial data, and financial 
reporting through the use of common standards.
    Based on the experiences of the Securities and Exchange 
Commission and the Federal Deposit Insurance Corporation, CBO 
estimates that, subject to the availability of appropriated 
funds, standardizing financial reporting definitions across 
federal agencies would cost about $5 million over the 2010-2012 
period for salaries and expenses and smaller amounts in 
subsequent years for ongoing maintenance and agencywide 
coordination. In addition, individual agencies would need to 
modify their current computer systems and train employees to 
use the new financial reporting procedures and systems. Such 
costs could total up to a few million dollars per agency, 
depending on the agency's current financial reporting system 
and how the final standard would be developed and implemented 
by OMB.
    The use of a single data standard for reporting financial 
information could reduce certain administrative costs, but 
because developing and implementing new standards would take 
some time, CBO expects that any such savings would be small 
over the next five years.
    The legislation also would affect direct spending by 
agencies not funded through annual appropriations, such as the 
Tennessee Valley Authority and the U.S. Postal Service, but CBO 
estimates that any net increase in spending by those agencies 
would not be significant.
    The legislation contains no intergovernmental or private-
sector mandates as defined in the Unfunded Mandates Reform Act 
and would impose no costs on state, local, or tribal 
governments.
    The CBO staff contact for this estimate is Matthew 
Pickford. The estimate was approved by Theresa Gullo, Deputy 
Assistant Director for Budget Analysis.

         CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    No changes to existing law are made by H.R. 2392, as 
reported.

                                  
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