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[House Report 105-7]
[From the U.S. Government Publishing Office]

105th Congress                                              Rept. 105-7
                        HOUSE OF REPRESENTATIVES

 1st Session                                                     Part 1
_______________________________________________________________________

 
                   PAPERWORK ELIMINATION ACT OF 1997

                                _______
                                

                 March 6, 1997.--Ordered to be printed

_______________________________________________________________________

    Mr. Talent, from the Committee on Small Business, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 852]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Small Business, to whom was referred the 
bill (H.R. 852) to amend chapter 35 of Title 44, United States 
Code, popularly known as the Paperwork Reduction Act, to 
minimize the burden of Federal paperwork demands upon small 
businesses, educational and nonprofit institutions, Federal 
contractors, State and local governments, and other persons 
through the sponsorship and use of alternative information 
technologies, having considered the same, report favorably 
thereon without amendment and recommend that the bill do pass.

                                Purpose

    The purpose of the ``Paperwork Elimination Act of 1997'' is 
to minimize the burdens of Federal paperwork demands upon small 
businesses, educational and nonprofit institutions, Federal 
contractors, State and local governments, and other persons 
through the use of alternative information technologies, 
including the use of electronic maintenance, submission, or 
disclosure of information to substitute for paper, or to more 
effectively enable federal agencies to achieve the purposes 
expressed in Chapter 35, Title 44, otherwise known as the 
``Paperwork Reduction Act.''

                                Summary

    In brief, the Paperwork Elimination Act is intended to do 
the following:
          A. Direct Federal agencies to provide the option of 
        electronic submission of information, electronic 
        compliance with regulatory information needs, and 
        electronic disclosure of information to all who respond 
        to federal information demands.
          Section 2 stresses the intention of this legislation 
        to advance the use of alternative information 
        technologies and, in doing so, decrease the level of 
        paperwork demands by the Federal government. The 
        intended beneficiaries of this legislation are small 
        businesses, educational and nonprofit institutions, 
        Federal contractors, State and local governments, and 
        others. Small businesses, who face a disproportionate 
        burden in complying with federal regulations, are 
        particularily targeted.
          B. Direct the Director of the Office of Management 
        and Budget (OMB) to oversee the implementation of 
        providing for the optional use of electronic 
        submission, maintenance, and disclosure. The Director 
        is to monitor and report to Congress on the progress of 
        Federal agencies and how regulatory burdens on small 
        businesses and others have been reduced as a result of 
        using new information technologies.
          Section 3(a) describes the responsibilities of the 
        Director of OMB to oversee the acquisition and use of 
        information technology. This section compels the 
        Director to consider alternative information 
        technologies when working with agencies to develop 
        strategies for reducing paperwork burdens.
          Section 3(b) directs the Director of OMB to promote 
        the use of electronic submission, maintenance, and 
        disclosure as a option for entities complying with the 
        regulations of Federal agencies. The provision 
        compliments and is added to Sec. 3504(h) of the 
        Paperwork Reduction Act, which outlines the Director's 
        obligations to advance the use of information 
        technology.
          C. Clarify and strengthen provisions within current 
        law requiring agencies to utilize ``information 
        technology'' by specifying that small business and 
        other public persons with access to computers and 
        modems should be enabled to use them when dealing with 
        the Federal government.
          Section 5(a) requires Federal agencies, when 
        appropriate, to provide respondents with the option of 
        maintaining, submitting, or disclosing information 
        electronically when complying with Federal regulations.
          Section 5(b) states that each agency must certify and 
        report on the extent to which it has considered and 
        relieved the burden of paperwork, particularly on small 
        business and individuals, by enabling the optional use 
        of electronic maintenance, submission, or disclosure of 
        information.
          Section 5(c) amends Sec. 3506(c)(3)(J) of the 
        Paperwork Reduction Act to specify that, when 
        certifying and reporting on information technologies 
        used to collect information, Federal agencies must also 
        consider the ability of respondents to electronically 
        maintain, submit, and disclose information.

                          Need for Legislation

          As part of continuing efforts to enable the Federal 
        government to take advantage of the Information Age, 
        the Committee recognized the need to encourage and 
        monitor the progress of Federal agencies in their 
        effort to utilize new ``information technology'' to 
        reduce the public cost of meeting the Federal 
        government's information needs. Moreover, a specific 
        need is to allow those small businesses, taxpayers, and 
        others with access to computers and modems to use them 
        when dealing with the Federal government.
          Witnesses before the Small Business Committee have 
        estimated that the American public expends an amount of 
        time and effort equal to 510 billion dollars, or some 9 
        percent of the Gross Domestic Product of 1992, in order 
        to meet the Federal government's information needs. 
        Small business bears a disproportionate share of that 
        cost.
          The Federal Government is lagging behind the rest of 
        the nation in using new technology. Individuals can now 
        send and receive mail, accomplish their personal 
        banking transactions, and even read a newspaper from a 
        personal computer or phone. Individuals should be able 
        to conduct much of their business with the government 
        electronically as well. Legislation is needed to seize 
        the opportunity which the Information Age and new 
        information technologies present to reduce the huge 
        cumulative burden of meeting the Federal government's 
        information demands.
          Clearly, the need exists to promote and monitor 
        efforts to minimize the burdens of Federal paperwork 
        demands upon small businesses, educational and 
        nonprofit institutions, Federal contractors, state and 
        local governments, and other persons through the use of 
        alternative information technologies, including the use 
        of electronic maintenance, submission, or disclosure of 
        information to substitute for paper. Congressional 
        oversight activities will be enhanced by requiring 
        reporting on the progress of agencies and how 
        regulatory burdens have been reduced.
          During the 104th Congress, the Government Programs 
        Subcommittee held hearings inwhich a number of 
witnesses stressed the need for this legislation. Witnesses went into 
great detail regarding the potential for significant cost savings 
through the implementation of information management systems which 
allow small business and the public to use electronic technology.
    These savings would be complemented by increased 
productivity in the workplace due to the reduction in time 
spent on paperwork submission and update. Mr. Marvin Beriss of 
MB Associates, Inc., an expert in database information 
technology, stated that the intelligent electronic form saves 
time by automatically populating fields on the same form that 
require the same information, such as the name, social security 
number, etc. Additionally, if such forms are used as part of a 
Form Set comprised of multiple forms, the common information 
can be automatically integrated onto all the forms in the set. 
This technology has the potential to save significant time 
spent filling in forms while concurrently insuring consistency 
and efficiency.
    The ``Paperwork Elimination Act'' amends Chapter 35, Title 
44, the Paperwork Reduction Act of 1995, by requiring all 
Federal agencies to provide the option of electronic submission 
of information, electronic compliance with regulations, and 
electronic disclosure of information to all who must comply 
with Federal regulations. Furthermore, Federal agencies would 
be prohibited from collecting information until they have first 
published a notice in the Federal Register detailing how the 
information may be maintained, submitted or disclosed 
electronically. The Director of the Office of Management and 
Budget would be required to oversee the implementation of 
electronic submission, compliance, and disclosure and to 
monitor and report on the progress of Federal agencies and how 
regulatory burdens on small businesses have been reduced.
    The Paperwork Elimination Act amends and complements the 
Paperwork Reduction Act of 1995, which has resulted in reduced 
regulatory burdens. The Paperwork Elimination Act strengthens 
the generic statute. It clarifies provisions within the law 
requiring agencies to consider and utilize information 
technology by specifying that those small businesses and public 
persons with access to computers and modems should have the 
option to use them when dealing with the Federal government.
    The Paperwork Elimination Act emphasizes that opportunities 
for the public to use electronic technologies for data 
submission should be optional. The Act will in no way hinder 
the ability of small businesses and individuals without access 
to computers and modems to comply with Federal paperwork 
requirements. The Act merely requires Federal agencies to 
consider and provide the option to those who wish and are able 
to use the technology.

                            Committee Action

    During the 104th Congress, H.R. 2715, the ``Paperwork 
Elimination Act,'' was introduced on December 5, 1995, by 
Government Programs Subcommittee Chairman Peter G. Torkildsen, 
for himself, Congresswomen Meyers and Smith, Congressmen 
Talent, Manzullo, Zeliff, Ewing, Jones, LoBiondo, Bartlett, 
Meehan, Chrysler, Metcalf, and Ramstad.
    After introduction, the bill was referred to both the 
Committee on Government Reform and Oversight, and the Committee 
on Small Business. On March 27, 1996, Chairman Torkildsen held 
a hearing on H.R. 2715 to consider all of the bill's 
provisions.
    Witnesses at the March 27, 1996, hearing included: The 
Honorable Sally Katzen, Administrator, Office of Information 
and Regulatory Affairs (OIRA), Office of Management and Budget; 
The Honorable Jere Glover, Chief Counsel, Office of Advocacy, 
U.S. Small Business Administration; Ms. Monika Harrison, 
Associate Administrator, Office of Business Initiatives, U.S. 
Small Business Administration; Mr. Pedro Alfonso, President, 
Dynamic Concepts, Inc., testifying on behalf of National Small 
Business United; Mr. Marvin Beriss, President, MB Associates, 
Inc.; and Melvin Gerald, M.D., testifying on behalf of the 
American Academy of Family Physicians.
    At the hearing, OIRA Administrator Katzen testified, ``As 
we read this bill, it makes it very clear Congress' expectation 
that agencies are to do everything they can to provide 
opportunities for, and indeed promote the use of, electronic 
maintenance, submission, or disclosure of information.''
    She further stated that ``* * * in signing the 1995 
Paperwork Reduction Act, President Clinton specifically 
recognized the concerns now recognized in H.R. 2715; `* * * 
from this point forward, I want all of our agencies to provide 
for the electronic submission of every new government form or 
to demonstrate to OMB why it cannot be done that way. The old 
way will still be available, but I think once people see how 
fast and efficient electronic filing can be, we'll see less 
paperwork and more of these.' ''
    Administrator Katzen proceeded to testify to the 
regulations issued by OMB on August 29, 1995, implementing the 
1995 PRA. As part of those regulations, OMB explicitly included 
provisions directed at this Congressional and Presidential 
interest in having agencies expand the opportunities for the 
public to submit information electronically. Ms. Katzen 
suggested an amendment to Section 5(a) of the bill which was 
later adopted by the Committee and added to the bill.
    Another witness, Chief Counsel for Advocacy Jere Glover, 
testified ``it is clear that the innovations can lead to 
significant cost savings by eliminating paper copies and the 
need for expensive file storage. To the extent that the current 
legislative proposal, H.R. 2715, clarifies Congressional intent 
behind the Paperwork Reduction Act of 1995, by requiring 
agencies to permit the `optional' electronic filing of reports, 
the Office of Advocacy believes it can benefit small business--
at least those with electronic capability.''
    Small business witnesses testified favorably on the cost 
and time savings that would result from the implementation of 
this legislation.
    A preliminary estimate from the Congressional Budget Office 
(CBO) reported that ``H.R. 2715 would not significantly 
increase costs to the Federal government.'' CBO went on to say 
that the technology already existed to allow Federal agencies 
to comply with the Act and that the administrative cost of 
directing and overseeing the initiative would not be 
significant. Also, as confirmed by CBO, the bill contained no 
mandates, as defined in Public Law 104-4.
    After taking into consideration the testimony of the 
witnesses at the March 27, 1996 hearing and the comments from 
the Congressional Budget Office on H.R. 2715, the Committee on 
Small Business held a mark-up of H.R. 2715 on March 29, 1996. 
By voice vote, with a requisite quorum of the Committee members 
present, the full Committee voted to report H.R. 2715, as 
amended, favorably to the full House.
    After reviewing the legislation and a detailed legislative 
history created by the Small Business Committee, including the 
CBO findings, Chairman Clinger, on behalf of the Committee on 
Government Reform and Oversight, waived that Committee's 
jurisdiction over this legislation.
    On April 24, 1996, H.R. 2715, as reported, was considered 
on the House floor under an open rule. The legislation passed 
the House by a vote of 418 to 0. The legislation was 
subsequently discharged from the Senate Committee on 
Governmental Affairs and sent to the desk for action. 
Unfortunately, the Senate ran out of time at the end of the 
session before it could act on this measure.
    H.R. 852, the ``Paperwork Elimination Act of 1997,'' was 
introduced on February 26, 1997 by Committee on Small Business 
Chairman James M. Talent. After introduction, the bill was 
referred to both the Committee on Government Reform and 
Oversight and the Committee on Small Business.
    A preliminary estimate from the CBO states that H.R. 852 
will not significantly increase costs to the Federal 
government. The CBO also states that the technology already 
exists to allow Federal agencies to comply with the Act and 
that the administrative costs would not be significant. The CBO 
also confirmed that H.R. 852 contains no mandates, as defined 
in Public Law 104-4.
    In light of the fact that H.R. 852 is virtually identical 
to H.R. 2715, and after taking into account the extensive 
legislative history of H.R. 2715 from the 104th Congress, the 
Chairman of the Committee on Small Business, in consultation 
with the Committee's Ranking Minority Member, decided to move 
forward with the Committee's consideration of H.R. 852 without 
any further hearings.
    On March 6, 1997, the Committee on Small Business held a 
mark-up of H.R. 852. By voice vote, with a requisite quorum of 
the Committee members present, the full Committee voted to 
report H.R. 852 favorably to the full House.
    After reviewing the legislation and the accompanying CBO 
findings with the Chairman of the National Economic Growth, 
Natural Resources, and Regulatory Affairs Subcommittee, 
Chairman Burton, on behalf of the Committee on Government 
Reform and Oversight, stated that the waiver of jurisdiction 
with respect to H.R. 852 would not limit the jurisdiction of 
theGovernment Reform and Oversight Committee on any future 
consideration of Federal paperwork reduction legislation.

                      Section-by-Section Analysis

                         SECTION 1. SHORT TITLE

    This legislation is entitled the ``Paperwork Elimination 
Act of 1997.''

                          SECTION 2. PURPOSES

    Section 2 stresses the intention of this legislation to 
advance the use of alternative information technologies and, in 
so doing, decrease paperwork demands by the Federal government. 
The intended beneficiaries of this legislation are small 
businesses, educational and nonprofit institutions, Federal 
contractors, state and local governments, and others. Of 
particular importance are the small businesses who face a 
disproportionate burden in complying with Federal regulations. 
Alternative technologies suggested to substitute for paper 
include electronic maintenance, submission, or disclosure of 
information. The Paperwork Elimination Act of 1997 intends to 
assist Federal agencies in fulfilling the purposes and goals of 
the Paperwork Reduction Act.

  SECTION 3. AUTHORITY AND FUNCTIONS OF THE DIRECTOR OF THE OFFICE OF 
                         MANAGEMENT AND BUDGET

Subsection (a)

    The authority and responsibility of the Director of the 
Office of Management and Budget (OMB) to ``provide direction 
and oversee the acquisition and use of information technology'' 
is described. This subsection compels the Director to consider 
alternative information technologies when developing a strategy 
to reduce paperwork.

Subsection (b)

    The Director of OMB is required to promote the use of 
electronic submission, maintenance, and disclosure as an option 
for entities complying with the regulatory information needs of 
Federal agencies. The provision is added to Sec. 3504(h) of the 
Paperwork Reduction Act (44 U.S.C. 35) which outlines the 
Director's obligations to advance the use of information 
technology.

              SECTION 4. ASSIGNMENT OF TASKS AND DEADLINES

    Sec. 3505(a)(3) of the Paperwork Reduction Act requires the 
Director of OMB, in consultation with the General Services 
Administration (GSA), National Institute of Standards and 
Technology (NIST), National Archives and Records Administration 
(NARA), and Office of Personnel Management (OPM), to develop 
and maintain a governmentwide strategic plan for information 
resources management. The Paperwork Elimination Act amends this 
section by inserting the requirement to include in this plan a 
progress report on the extent to which the paperwork burden on 
small businesses and individuals has been relieved as a result 
of the use of electronic submission, maintenance, or disclosure 
of information to substitute for paper.

               SECTION 5. FEDERAL AGENCY RESPONSIBILITIES

Subsection (a)

    Federal agencies are required, when it is appropriate, to 
provide respondents with the option of maintaining, submitting, 
or disclosing information electronically when complying with 
Federal regulations.

Subsection (b)

    Each Federal agency must certify and report to the Director 
of OMB on the extent to which it has relieved the burden of 
paperwork, particularly on small businesses and individuals, by 
allowing the maintenance, submission, and disclosure of 
information electronically.

Subsection (c)

    Sec. 3506(c)(3)(J) of the Paperwork Reduction Act is 
amended to specify that, when certifying and reporting on 
alternative technologies used to collect information, Federal 
agencies must also consider the ability of respondents to 
electronically maintain, submit and disclose information. The 
subsection's intent is to reduce burden, improve data quality, 
and make agencies more efficient and responsive.

  SECTION 6. PUBLIC INFORMATION COLLECTION ACTIVITIES; SUBMISSION TO 
                   DIRECTOR; APPROVAL AND DELEGATION

    Section 6 prohibits agencies from collecting information 
until they have first published a notice in the Federal 
Register describing how the information may, if appropriate, be 
electronically maintained, submitted, or disclosed by a 
respondent.

                    SECTION 7. RESPONSE TO CONGRESS

    When responding to Congress annually or at other times, the 
Director of OMB must report on how the collection of 
information by electronic means has affected regulatory burdens 
on small businesses and other persons. This report must 
specifically include any instance in which the maintenance, 
submission, or disclosure of information electronically, as 
opposed to with paper, increased the regulatory burden on small 
business. It should also specifically identify instances 
referring to the information required from small businesses by 
the Internal Revenue Service [IRS].

                       SECTION 8. EFFECTIVE DATE

    The provisions of this bill shall take effect on October 1, 
1998.

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, March 6, 1997.
Hon. James M. Talent,
Chairman, Committee on Small Business,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 852, the Paperwork 
Elimination Act of 1997.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is John R. 
Righter.
            Sincerely,
                                              James L. Blum
                                   (For June E. O'Neill, Director).
    Enclosure.

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

    CBO estimates that enacting this bill would not 
significantly increase costs to the federal government. Because 
the bill would not affect direct spending or receipts, pay-as-
you-go procedures would not apply. H.R. 852 contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act of 1995 and would not have a 
significant impact on state, local, or tribal governments.
    H.R. 852 would build on the Paperwork Reduction Act of 
1995. Specifically, the bill would encourage federal agencies 
to use electronic information technologies to reduce the burden 
on individuals and businesses that disclose information to or 
contract with the federal government. In addition, the bill 
would designate the Office of Management and Budget (OMB) as 
the agency responsible for promoting and monitoring the use of 
these technologies.
    The bill, however, would not require agencies to acquire 
and implement new information technologies, and the authority 
to use these technologies already exists. Consequently, we 
estimate that H.R. 852 would not significantly increase costs 
to the federal government. Implementing H.R. 852 would increase 
administrative costs at OMB to direct and oversee government-
wide activities involving the use of alternative information 
technologies; we estimate that such additional costs would not 
be significant.
    The CBO staff contact for this estimate is John R. Righter. 
This estimate was approved by Paul N. Van de Water, Assistant 
Director for Budget Analysis.
                          House of Representatives,
              Committee on Government Reform and Oversight,
                                     Washington, DC, March 6, 1997.
Hon. James Talent,
Chairman, Committee on Small Business,
Rayburn House Office Building, Washington, DC.
    Dear Mr. Chairman: This letter responds to your request 
that the Committee on Government Reform and Oversight waive its 
primary jurisdiction over H.R. 852, the Paperwork Elimination 
Act of 1997, as introduced on February 26, 1997. After 
reviewing this legislation, I have agreed to waive the 
jurisdiction of the Committee on Government Reform and 
Oversight over this legislation.
    H.R. 852 would build on the Paperwork Reduction Act of 
1995, which was signed into law on May 22, 1995 (Public Law 
104-13). Specifically, the bill would encourage the use of 
electronic information technology by federal agencies as a way 
of reducing the burden on individuals and businesses that 
disclose information to or contract with the federal 
government. In addition, the bill would designate the Office of 
Management and Budget as the agency responsible for promoting 
and monitoring the use of these technologies.
    As you know, House Rule X, Establishment and Jurisdiction 
of Standing Committees, grants the Government Reform and 
Oversight Committee with jurisdiction over ``Federal paperwork 
reduction.'' The waiver of H.R. 852 is not designed to limit 
our jurisdiction over any future consideration of Federal 
paperwork reduction legislation.
    Thank you for your dedication and hard work on this issue. 
I look forward to working with you on this and other issues 
throughout the 105th Congress.
            Sincerely,
                                                Dan Burton,
                                                          Chairman.

                   Constitutional Authority Statement

    Pursuant to clause 2(l)(4) of rule XI of the Rules of the 
House of Representatives, the Committee finds the authority for 
this legislation in Article I, section 8, clause 18, of the 
Constitution.

                           Oversight Findings

    In accordance with clause 2(l)(3)(D) of rule XI of the 
Rules of the House of Representatives, the Committee states 
that no oversight findings or recommendations have been made by 
the Committee on Government Reform and Oversight with respect 
to the subject matter contained in H.R. 852.
    In accordance with clause (2)(l)(3)(A) of rule XI and 
clause 2(b)(1) of rule X of the Rules of the House of 
Representatives, the oversight findings and recommendations of 
the Committee on Small Business with respect to the subject 
matter contained in H.R. 852 are incorporated into the 
descriptive portions of this report.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets, new matter is 
printed in italic, existing law in which no change is proposed 
is shown in roman):

                      TITLE 44, UNITED STATES CODE

          * * * * * * *

         CHAPTER 35--COORDINATION OF FEDERAL INFORMATION POLICY

          * * * * * * *

Sec. 3504. Authority and functions of Director

  (a)(1) The Director shall oversee the use of information 
resources to improve the efficiency and effectiveness of 
governmental operations to serve agency missions, including 
burden reduction and service delivery to the public. In 
performing such oversight, the Director shall--
          (A) develop, coordinate and oversee the 
        implementation of Federal information resources 
        management policies, principles, standards, and 
        guidelines; and
          (B) provide direction and oversee--
                  (i) * * *
          * * * * * * *
                  [(vi) the acquisition and use of information 
                technology.]
                  (vi) the acquisition and use of information 
                technology, including the use of alternative 
                information technologies, such as the use of 
                electronic submission, maintenance, or 
                disclosure of information to substitute for 
                paper.
          * * * * * * *
  (h) With respect to Federal information technology, the 
Director shall--
          (1) * * *
          * * * * * * *
          (4) ensure, through the review of agency budget 
        proposals, information resources management plans and 
        other means--
                  (A) agency integration of information 
                resources management plans, program plans and 
                budgets for acquisition and use of information 
                technology; and
                  (B) the efficiency and effectiveness of 
                inter-agency information technology initiatives 
                to improve agency performance and the 
                accomplishment of agency missions; [and]
          (5) promote the use of information technology by the 
        Federal Government to improve the productivity, 
        efficiency, and effectiveness of Federal programs, 
        including through dissemination of public information 
        and the reduction of information collection burdens on 
        the public[.]; and
          (6) specifically promote the optional use of 
        electronic maintenance, submission, or disclosure of 
        information where appropriate, as an alternative 
        information technology to substitute for paper.

Sec. 3505. Assignment of tasks and deadlines

  (a) In carrying out the functions under this chapter, the 
Director shall--
          (1) * * *
          * * * * * * *
          (3) in consultation with the Administrator of General 
        Services, the Director of the National Institute of 
        Standards and Technology, the Archivist of the United 
        States, and the Director of the Office of Personnel 
        Management, develop and maintain a Governmentwide 
        strategic plan for information resources management, 
        that shall include--
                  (A) * * *
                  (B) plans for--
                          (i) reducing information burdens on 
                        the public, including reducing such 
                        burdens through the elimination of 
                        duplication and meeting shared data 
                        needs with shared resources;
                          (ii) enhancing public access to and 
                        dissemination of, information, using 
                        electronic and other formats; and
                          (iii) meeting the information 
                        technology needs of the Federal 
                        Government in accordance with the 
                        purposes of this chapter; [and]
                  (C) a description of progress in applying 
                information resources management to improve 
                agency performance and the accomplishment of 
                missions[.]; and
                  (D) a description of progress in providing 
                for the use of electronic submission, 
                maintenance, or disclosure of information to 
                substitute for paper, including the extent to 
                which such progress accomplishes reduction of 
                burden on small businesses or other persons.
          * * * * * * *

Sec. 3506. Federal agency responsibilities

  (a) * * *
          * * * * * * *
  (c) With respect to the collection of information and the 
control of paperwork, each agency shall--
          (1) establish a process within the office headed by 
        the Chief Information Officer designated under 
        subsection (a), that is sufficiently independent of 
        program responsibility to evaluate fairly whether 
        proposed collections of information should be approved 
        under this chapter, to--
                  (A) * * *
                  (B) ensure that each information collection--
                          (i) is inventoried, displays a 
                        control number and, if appropriate, an 
                        expiration date;
                          (ii) indicates the collection is in 
                        accordance with the clearance 
                        requirements of section 3507; [and]
          * * * * * * *
                          (iv) provides for the optional use, 
                        where appropriate, of electronic 
                        maintenance, submission, or disclosure 
                        of information; and
          * * * * * * *
          (3) certify (and provide a record supporting such 
        certification, including public comments received by 
        the agency) that each collection of information 
        submitted to the Director for review under section 
        3507--
                  (A) * * *
          * * * * * * *
                  (C) reduces to the extent practicable and 
                appropriate the burden on persons who shall 
                provide information to or for the agency, 
                including with respect to small entities, as 
                defined under section 601(6) of title 5, the 
                use of such techniques as--
                          (i) establishing differing compliance 
                        or reporting requirements or timetables 
                        that take into account the resources 
                        available to those who are to respond;
                          (ii) the clarification, 
                        consolidation, or simplification of 
                        compliance and reporting requirements; 
                        [or]
                          (iii) an exemption from coverage of 
                        the collection of information, or any 
                        part thereof; or
                          (iv) the promotion and optional use, 
                        where appropriate, of electronic 
                        maintenance, submission, or disclosure 
                        of information.
          * * * * * * *
                  [(J) to the maximum extent practicable, uses 
                information technology to reduce burden and 
                improve data quality, agency efficiency and 
                responsiveness to the public.]
                  (J) to the maximum extent practicable, uses 
                alternative information technologies, including 
                the use of electronic maintenance, submission, 
                or disclosure of information, to reduce burden 
                and improve data quality, agency efficiency and 
                responsiveness to the public.
          * * * * * * *

Sec. 3507. Public information collection activities; submission to 
                    Director; approval and delegation

  (a) An agency shall not conduct or sponsor the collection of 
information unless in advance of the adoption or revision of 
the collection of information--
          (1) the agency has--
                  (A) * * *
          * * * * * * *
                  (D) published a notice in the Federal 
                Register--
                          (i) stating that the agency has made 
                        such submission; and
                          (ii) setting forth--
                                  (I) * * *
          * * * * * * *
                                  (V) an estimate of the burden 
                                that shall result from the 
                                collection of information; 
                                [and]
                                  (VI) notice that comments may 
                                be submitted to the agency and 
                                Director; and
                                  (VII) a description of how 
                                respondents may, if 
                                appropriate, electronically 
                                maintain, submit, or disclose 
                                information under the 
                                collection of information.
          * * * * * * *

Sec. 3514. Responsiveness to Congress

  (a)(1) * * *
  (2) The Director shall include in any such report a 
description of the extent to which agencies have--
          (A) * * *
          * * * * * * *
          (C) improved public access to Government information; 
        [and]
          (D) improved program performance and the 
        accomplishment of agency missions through information 
        resources management[.]; and
          (E) reduced the collection of information burden on 
        small businesses and other persons through the use of 
        electronic maintenance, submission, or disclosure of 
        information to substitute for paper maintenance, 
        submission, or disclosure of information, including--
                  (i) a description of instances where such 
                substitution has added to burden; and
                  (ii) specific identification of such 
                instances relating to the Internal Revenue 
                Service.
          * * * * * * *

                                
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