79–006

106TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 106–565

FREEDOM TO E-FILE ACT

APRIL 10, 2000.—Committed to the Committee of the Whole House on the State of

the Union and ordered to be printed

Mr. COMBEST, from the Committee on Agriculture,

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 Agriculture, to whom was referred the bill

(H.R. 852) to require the Department of Agriculture to establish an

electronic filing and retrieval system to enable the public to file all

required paperwork electronically with the Department and to have

access to public information on farm programs, quarterly trade,

economic, and production reports, and other similar information,

having considered the same, report favorably thereon with amendment and recommend that the bill as amended do pass.

The amendments are as follows:

Strike out all after the enacting clause and insert in lieu thereof

the following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Freedom to E-File Act’’.

SEC. 2. ELECTRONIC FILING AND RETRIEVAL.

(a) ESTABLISHMENT OF INTERNET-BASED SYSTEM.—The Secretary of Agriculture

shall establish an electronic filing and retrieval system that uses the telecommunications medium known as the Internet to enable farmers and other persons—

(1) to file electronically all paperwork required by the agencies of the Department of Agriculture specified in subsection (b); and

(2) to have access electronically to information, readily available to the public

in published form, regarding farm programs, quarterly trade, economic, and

production reports, price and supply information, and other similar information

related to production agriculture.

(b) COVERED AGENCIES.—Subsection (a) shall apply to the following agencies of

the Department of Agriculture:

(1) The Farm Service Agency.

(2) The Risk Management Agency.

(3) The Natural Resources Conservation Service.
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(4) The rural development components of the Department included in the Secretary’s service center initiative regarding State and field office collocation implemented pursuant to section 215 of the Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 6915).

(c) TIME-TABLE FOR IMPLEMENTATION.—Not later than 180 days after the date of

the enactment of this Act, the Secretary shall—

(1) to the maximum extent practicable, complete the establishment of the

electronic filing and retrieval system required by subsection (a) to the extent

necessary to permit the electronic information access required by paragraph (2)

of such subsection;

(2) initiate implementation of the electronic filing required by paragraph (1)

of such subsection by allowing farmers and other persons to download forms

from the Internet and submit completed forms via facsimile, mail, or related

means; and

(3) modify forms used by the agencies specified in subsection (b) into a more

user-friendly format, with self-help guidance materials.

(d) INTEROPERABILITY.—In carrying out this section, the Secretary shall ensure

that the agencies specified in subsection (b)—

(1) use computer hardware and software that is compatible among the agencies and will operate in a common computing environment; and

(2) develop common Internet user-interface locations and applications to consolidate the agencies’ news, information, and program materials.

(e) COMPLETION OF IMPLEMENTATION.—Not later than two years after the date of

the enactment of this Act, the Secretary shall complete the establishment of the

electronic filing and retrieval system required by subsection (a) to permit the electronic filing required by paragraph (1) of such subsection.

(f) PROGRESS REPORT.—Not later than 180 days after the date of the enactment

of this Act, the Secretary shall submit to Congress a report describing the progress

made toward establishing the electronic filing and retrieval system required by subsection (a).

SEC. 3. AVAILABILITY OF AGENCY INFORMATION TECHNOLOGY FUNDS.

(a) RESERVATION OF FUNDS.—From funds made available for each agency of the

Department of Agriculture specified in section 2(b) for information technology or information resource management, the Secretary of Agriculture shall reserve an

amount equal to not more than the following:

(1) For fiscal year 2001, $3,000,000.

(2) For each subsequent fiscal year, $2,000,000.

(b) TIME FOR RESERVATION.—The Secretary shall notify Congress of the amount

to be reserved under subsection (a) for a fiscal year not later than December 1 of

that fiscal year.

(c) USE OF FUNDS.—Funds reserved under subsection (a) shall be used to establish

the electronic filing and retrieval system required by section 2(a). Once the system

is established and operational, reserved amounts shall be used for maintenance and

improvement of the system.

(d) RETURN OF FUNDS.—Funds reserved under subsection (a) and unobligated at

the end of the fiscal year shall be returned to the agency from which the funds were

reserved, and such funds shall remain available until expended.

Amend the title so as to read:

A bill to require the Secretary of Agriculture to establish an electronic filing and retrieval system to enable farmers and other persons to file paperwork electronically with selected agencies of the

Department of Agriculture and to access public information regarding the programs administered by these agencies.

BRIEF EXPLANATION

H.R. 852 requires the Secretary of the U.S. Department of Agriculture to establish an internet-based system to allow farmers,

ranchers, and other persons to complete and submit program applications electronically, and to have electronic access to all relevant

economic and program information and data.
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PURPOSE AND NEED

The Freedom to E-File Act requires the United States Department of Agriculture (USDA) to establish an electronic filing and retrieval system to enable the public to file with USDA all required

paperwork electronically. In doing so, the Act would allow producers, farmers and rural America to have access to information on

farm programs, quarterly trade, economic and production reports

and other similar information.

The purpose of the bill is to allow farmers to do business with

USDA over the Internet. The rapidly evolving e-commerce economy

of the 21st Century continues to assert itself as the future of worldwide commerce. Like any business today, farmers are using computers and the Internet for a variety of purposes, including financial management systems and market information. It is becoming

increasingly important to ensure that all segments of our economy

are technologically efficient.

Currently, USDA operates several separate, and in some cases

antiquated, computer systems. The continued use of such ad hoc,

uncoordinated systems threatens to disable producers and farmers

from access to a maturing information technology market. Rural

Americans face the very real potential of being left behind in this

era of sweeping technological advances. It is vital to empower producers and farmers by providing them with the technological tools

to do business via the Internet with USDA. The continued absence

of a viable common computing environment at the Department will

result in its failure to assist the very constituency it is obliged to

serve.

The Committee believes that the Freedom to E-File Act achieves

the most important objective of allowing the public the access and

freedom to do effective, better business with USDA via the Internet. The globally integrated e-commerce economy demands that

private and public entities move quickly to establish efficient avenues of commerce. It is the Committee’s belief that this legislation

forces USDA in the right direction; the direction of enabling producers, farmers and rural Americans to benefit in an age of technological revolution.

SECTION-BY-SECTION

Section 1. Short title

This Act may be cited as the ‘‘Freedom to E-File Act’’.

Section 2. Electronic filing and retrieval

Subsection (a) requires the Department of Agriculture to establish an electronic filing and retrieval system to enable farmers to

electronically file all required paperwork with USDA. It allows the

public to access farm program information, quarterly trade reports,

economic and production reports and similar information.

Subsection (b) identifies the Farm Service Agency (FSA), the

Risk Management Agency (RMA), the Natural Resources Conservation Service (NRCS), and any Rural Development agencies included

in the Secretary’s service center initiative regarding State and field

office collocation as those affected agencies under the bill. These

field agencies are in a position to best administer the benefits pro-
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duced by this legislation. The Committee notes that the Secretary

may include, and would encourage the Secretary to include, other

agencies as appropriate.

Subsection (c) establishes a 180-day initial timetable for implementation. The Secretary is required to complete the establishment

and initial implementation of the electronic filing and retrieval system, allowing farmers to download forms from the Internet and

submit completed and modified forms used by the agencies specified in subsection (b) into a more user-friendly format, with selfhelp guidance materials.

Subsection (d) refers to the common computing environment initiative within USDA. To that end, Subsection (d) requires the Secretary to ensure that the agencies affected by the bill use computer

hardware and software that is compatible among the agencies and

will operate in a common computing environment. Furthermore,

subsection (d) stipulates that USDA develop common Internet applications to consolidate the agencies’ news, information, and program materials.

Subsection (e) requires that farmers be able to electronically file

all paperwork required by the agencies within two years from the

date of enactment of this Act.

Subsection (f) asks the Secretary to submit a progress report to

Congress, no later than 180 days after the date of enactment, detailing the progress made toward establishing the electronic filing

and retrieval system required by the Act.

Section 3. Availability of agency information technology funds

Section 3 authorizes the Secretary to redirect certain amounts of

discretionary funds made available to the Secretary from the agencies in order to carry out this act. The amounts are $3,000,000 for

FY 2001 and $2,000,000 for each subsequent fiscal year.

Additionally, section 3 requires the Secretary to notify Congress

of the amount to be reserved no later than December 1 of that fiscal year and that any reserved funds shall be used to establish the

electronic filing and retrieval system. Once the system is established and operational, reserved amounts shall be used for maintenance and improvements to the system. This section also requires

the Secretary to return any unobligated funds back to the agency

from which the funds were reserved and such funds shall remain

available until expended.

COMMITTEE CONSIDERATION

I—Hearings

On Thursday, June 17, 1999, the Subcommittee on Department

Operations, Oversight, Nutrition and Forestry held a public hearing to review H.R. 852, The Freedom to E-File Act. Testimony was

taken from the administration, mortgage lending company executives, and various trade association representatives. The purpose of

the hearing was to review proposed legislation to establish an electronic filing and retrieval system to enable the public to file with

USDA all required paperwork electronically. The predominate issue

discussed was how the legislation would allow producers, farmers

and rural America the access and freedom necessary to do more ef-
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ficient, better business with USDA. The Subcommittee also examined the potential financial costs to USDA, as it related to the proposed implementation process described in the legislation.

II—Subcommittee

The Subcommittee on Department Operations, Oversight, Nutrition, and Forestry met on March 23, 2000, to consider H.R. 852,

the Freedom to E-File Act.

Chairman Goodlatte called the meeting to order and made opening remarks as did Ranking Minority Member Clayton and Mr.

LaHood, the sponsor of the bill.

Without objection, Chairman Goodlatte offered an Amendment in

the Nature of a Substitute to H.R. 852, which was considered as

original text and open for amendments at any point.

Mr. LaHood offered an explanation of the legislation and emphasized that H.R. 852 would increase not only the efficiency of the

farmers, but also increase the efficiency of the Department of Agriculture. Additionally, Mr. LaHood noted that similar legislation

had already passed the Senate, S. 777, sponsored by Senator Fitzgerald of Illinois.

Mr. Walden spoke in favor, indicating that the legislation was of

great benefit to American’s farmers and ranchers. He also commended his colleague, Mr. LaHood, for crafting the bill.

No additional amendments were offered, Mr. Goodlatte moved

that the Amendment in the Nature of a Substitute be adopted. By

a voice vote, the motion was approved.

Mrs. Clayton moved that H.R. 852, as amended, be adopted and

reported favorably to the Full Committee. By voice vote, the motion

was approved.

Without objection, staff was given permission to make any necessary clerical, technical, or conforming changes to reflect the intent of the Subcommittee and the meeting was then adjourned.

III—Full committee

The Committee on Agriculture met, pursuant to notice, with a

quorum present, on March 29, 2000, to consider H.R. 852, as approved by the Subcommittee on Department Operations, Oversight,

Nutrition and Forestry.

Chairman Combest recognized Members for remarks and Ranking Minority Member Stenholm offered strong support for the bill,

indicating that the legislation would provide greater electronic access to USDA programs and services.

Mr. LaHood also offered a strong endorsement for the legislation

and emphasized that H.R. 852 would technologically move agriculture into the 21st century, increasing not only the efficiency of

the farmer, but also the efficiency of the Department of Agriculture. Additionally, Mr. LaHood, noted that similar legislation

had passed the Senate S. 777, sponsored by Senator Fitzgerald of

Illinois. Finally Mr. LaHood recognized and thanked Chairman

Combest, Ranking Minority Member Stenholm, Subcommittee

Chairman Goodlatte and Ranking Minority Member Clayton for

their support.
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Committee Counsel was then recognized to give a brief explanation of the bill and Members were given an opportunity to ask

questions.

No additional amendments were offered. Mr. Combest then

moved that the Amendment in the Nature of a Substitute as approved by the Subcommittee be adopted. By a voice vote, the motion was approved.

The Chairman then moved that H.R. 852, as amended, be adopted and ordered reported favorably to the House. By a voice vote,

the motion was approved.

Without objection, staff was given permission to make any necessary clerical, technical, or conforming changes to reflect the intent of the Subcommittee and the meeting was adjourned subject

to the call of the chair.

REPORTING THE BILL—ROLLCALL VOTES

In compliance with clause 3(b) of rule XIII of the Rules of the

House of Representatives, H.R. 852, as amended, was reported by

voice vote with a majority quorum present. There was no request

for a recorded vote.

BUDGET ACT COMPLIANCE (SECTIONS 308, 402, AND 423)

The provisions of clause 3(c)(2) of rule XIII of the Rules of the

House of Representatives and section 308(a)(1) of the Congressional

Budget Act of 1974 (relating to estimates of new budget authority,

new spending authority, new credit authority, or increased or decreased revenues or tax expenditures) are not considered applicable. The estimate and comparison required to be prepared by the

Director of the Congressional Budget Office under clause 3(c)(3) of

rule XIII of the Rules of the House of Representatives and sections

402 and 423 of the Congressional Budget Act of 1974 submitted to

the Committee prior to the filing of this report are as follows:

U.S. CONGRESS, CONGRESSIONAL BUDGET OFFICE, Washington, DC, April 7, 2000.

Hon. LARRY COMBEST,

Chairman, Committee on Agriculture,

House of Representatives, Washington, DC.

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 852, the Freedom to E–

File Act.

If you wish further details on this estimate, we will be pleased

to provide them. The CBO staff contact is Jim Langley.

Sincerely,

STEVEN M. LIEBERMAN

(For Dan L. Crippen, Director).

Enclosure.

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

H.R. 852—Freedom to E-File Act

Summary: H.R. 852 would require the U.S. Department of Agriculture (USDA) to establish an electronic filing and retrieval sys-
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tem to enable the public to file paperwork electronically with selected agencies and to access public information regarding the programs administered by these agencies. The bill would authorize annual appropriations to operate the system.

CBO estimates that implementation of H.R. 852 would cost about

$11 million over the 2001–2005 period, assuming appropriation of

the necessary amounts. The bill would not affect direct spending or

receipts, therefore 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 (UMRA) and would

impose no costs on state, local, or tribal governments.

Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 852 is shown in the following table. The costs

of this legislation fall within budget function 350 (agriculture).

By fiscal year, in millions of dollars—

2000 2001 2002 2003 2004 2005

SPENDING SUBJECT TO APPROPRIATION

Spending under current law 1

Budget authority/estimated authorization level .............................. 10 10 11 11 11 12

Estimated outlays ............................................................................ 43 10 11 11 11 12

Proposed changes:

Authorization level ........................................................................... 0 3 2 2 2 2

Estimated outlays ............................................................................ 0 3 2 2 2 2

Spending under H.R. 852:

Estimated authorization level 1 ....................................................... 10 13 13 13 13 14

Estimated outlays ............................................................................ 43 13 13 13 13 14

1 The 2000 level is the amount appropriated for USDA’s Chief Information Officer that year. Estimated spending in 2000 includes amounts

from the $59 million appropriated for this activity in 1999. The 2001–2005 amounts assume continuation of this level of spending adjusted

for anticipated inflation.

Basis of estimate: Not later than two years after the date of enactment, USDA would be required to complete the establishment of

a computer system that producers can use to electronically file all

paper work required by selected agencies of USDA. The bill authorizes the appropriation of $3 million in fiscal year 2001 for this purpose, and $2 million in each subsequent year.

Pay-as-you-go considerations: None.

Intergovernmental and private-sector impact: H.R. 852 contains

no intergovernmental or private-sector mandates as defined in

UMRA and would have no significant impact on the budgets of

state, local, or tribal governments.

Estimate prepared by: Federal costs: Jim Landley; impact on

State, local and tribal governments: Marjorie Miller; impact on private sector: Patrice Gordon.

Estimate approved by: Peter H. Fontaine, Deputy Assistant Director for Budget Analysis.

COMMITTEE COST ESTIMATE

Pursuant to clause 3(d)(2) of rule XIII of the Rules of the House

of Representatives, the Committee report incorporates the cost estimate prepared by the Director of the Congressional Budget Office

pursuant to sections 402 and 423 of the Congressional Budget Act

of 1974.
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CONSTITUTIONAL AUTHORITY STATEMENT

Pursuant to clause 3(d)(1) of rule XIII of the Rules of the House

of Representatives, the Committee finds the Constitutional authority for this legislation in Article I, clause 8, section 18, that grants

Congress the power to make all laws necessary and proper for carrying out the powers vested by Congress in the Constitution of the

United States or in any department or officer thereof.

OVERSIGHT STATEMENT

No summary of oversight findings and recommendations made by

the Committee on Government Reform, as provided for in clause

3(c)(4) of rule XIII of the Rules of the House of Representatives,

was available to the Committee with reference to the subject matter specifically addressed by H.R. 852, as amended.

COMMITTEE OVERSIGHT FINDINGS

Pursuant to clause 3(c)(1) of rule XIII of the Rules of the House

of Representatives, the Committee on Agriculture’s oversight findings and recommendations are reflected in the body of this report.

ADVISORY COMMITTEE STATEMENT

No advisory committee within the meaning of section 5(b) of the

Federal Advisory Committee Act was created by this legislation.

APPLICABILITY TO THE LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the

terms and conditions of employment or access to public services or

accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act (Public Law 104–1).

FEDERAL MANDATES STATEMENT

The Committee adopted as its own the estimate of Federal mandates prepared by the Director of the Congressional Budget Office

pursuant to section 423 of the Unfunded Mandates Reform Act

(Public Law 104–4).

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