S 3040 IS
106th CONGRESS
2d Session
S. 3040
To establish the Commission for the Comprehensive Study of Privacy
Protection, and for other purposes.
IN THE SENATE OF THE UNITED STATES
September 13, 2000
Mr. THOMPSON (for himself, Mr. KOHL, Mr. ABRAHAM, Mr. TORRICELLI, Mr.
VOINOVICH, Mrs. LINCOLN, Mr. ROTH, Mr. GREGG, Mr. HUTCHINSON, Ms. COLLINS, Mr.
DEWINE, Mr. LEVIN, Ms. LANDRIEU, and Mr. STEVENS) introduced the following bill;
which was read twice and referred to the Committee on Governmental Affairs
A BILL
To establish the Commission for the Comprehensive Study of Privacy
Protection, and for other purposes.
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.
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) 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.
(3) This Act shall not be construed to prohibit the enactment of
legislation on privacy issues by Congress during the existence of the
Commission. It is the responsibility of Congress to act to protect the
privacy of individuals, including individuals' medical and financial
information. Various committees of 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 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.
(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- The Commission shall conduct at least 3 field hearings
in different geographical regions of the United States.
(1) IN GENERAL- Not later than December 31, 2001--
(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, employee
benefits, or critical infrastructure protection.
(F) Cost analysis of legislative or regulatory changes proposed in the
report.
(G) Recommendations on non-legislative solutions to individual privacy
concerns, including education, market-based measures, industry best
practices, and new technology.
(H) Review of the effectiveness and utility of third-party
verification, 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 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, the health care industry, 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.
(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.
(1) IN GENERAL- Not later than 40 days after the date of enactment of
this Act, 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) WEBSITE- The Commission shall establish a website to facilitate public
participation and the submission of public comments.
(e) 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.
(f) 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.
(g) 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.
(h) 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).
(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 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.
SEC. 8. 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.
SEC. 9. 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. 10. TERMINATION.
The Commission shall terminate 30 days after submitting a report under
section 4(c).
SEC. 11. 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.
END