actions), 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 em-
ployee financial or health information for mar-
keting, 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 infor-
mation; and
(E) practices of employer medical depart-
ments 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 viola-
tions.
(6) The extent to which older individuals and
disabled individuals are subject to exploitation involv-
ing the disclosure or use of their financial informa-
tion.
(b) FIELD HEARINGS.—
(1) IN GENERAL.—The Commission shall conduct
at least 2 field hearings in each of the 5 geographical
regions of the United States.
(2) BOUNDARIES.—For purposes of this sub-
section, the Commission may determine the bound-
aries of the five geographical regions of the United
States.
(c) REPORT.—
(1) IN
GENERAL.—Not later than 18 months
after 
appointment 
of 
all 
members 
of 
the
Commission—
(A) a majority of the members of the Com-
mission shall approve a report; and
(B) the Commission shall submit the ap-
proved report to the Congress and the President.
(2) CONTENTS.—The report shall include a de-
tailed statement of findings, conclusions, and rec-
ommendations, 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-regu-
latory efforts, technology advances, and market
forces in protecting individual privacy.
(D) Recommendations on whether addi-
tional legislation is necessary, and if so, specific
suggestions on proposals to reform or augment
current laws and regulations relating to indi-
vidual privacy.
(E) Analysis of purposes for which addi-
tional regulations may impose undue costs or
burdens, or cause unintended consequences in
other policy areas, such as security, law enforce-
ment, medical research, or critical infrastructure
protection.
(F) Cost analysis of legislative or regulatory
changes proposed in the report.
(G) Recommendations on non-legislative so-
lutions 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 of privacy statements,
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 dis-
senting 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 ap-
proved 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 member-
ship of the Commission has a diversity of views and experi-
ences on the issues to be studied by the Commission, such
as views and experiences of Federal, State, and local gov-
ernments, the media, the academic community, consumer
groups, public policy groups and other advocacy organiza-
tions, business and industry (including small business), the
medical community, civil liberties experts, and the finan-
cial 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 appoint-
ment 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 Com-
mission shall constitute a quorum, but a lesser number may
hold hearings.
(h) MEETINGS.—
(1) IN GENERAL.—The Commission shall meet at
the call of the Chairperson or a majority of its mem-
bers.
(2) INITIAL MEETING.—Not later than 45 days
after the date of the enactment of this Act, the Com-
mission shall hold its initial meeting.
SEC. 6. DIRECTOR; STAFF; EXPERTS AND CONSULTANTS.
(a) DIRECTOR.—
(1) IN GENERAL.—On or after October 1, 2000,
the Commission shall appoint a Director without re-
gard 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 estab-
lished under section 5314 of such title.
(b) STAFF.—The Director may appoint staff as the Di-
rector 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 wit-
nesses appearing before it.
(b) POWERS OF MEMBERS AND AGENTS.—Any mem-
ber or agent of the Commission may, if authorized by the
Commission, take any action which the Commission is au-
thorized to take by this section.
(c) OBTAINING OFFICIAL INFORMATION.—
(1) IN GENERAL.—Except as provided in para-
graph (2), if the Chairperson of the Commission sub-
mits 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 Commis-
sion.
(2) EXCEPTION FOR NATIONAL SECURITY.—If the
head of that department or agency determines that it
is necessary to guard that information from disclo-
sure to protect the national security interests of the
United States, the head shall not furnish that infor-
mation to the Commission.
(d) MAILS.—The Commission may use the United
States mails in the same manner and under the same condi-
tions as other departments and agencies of the United
States.
(e) ADMINISTRATIVE SUPPORT SERVICES.—Upon the
request of the Director, the Administrator of General Serv-
ices shall provide to the Commission, on a reimbursable
basis, the administrative support services necessary for the
Commission to carry out this Act.
(f) GIFTS AND DONATIONS.—The Commission may ac-
cept, 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.
(g) CONTRACTS.—The Commission may contract with
and compensate persons and government agencies for sup-
plies and services, without regard to section 3709 of the Re-
vised Statutes (41 U.S.C. 5).
(h) SUBPOENA POWER.—
(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 con-
ducted 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 con-
tempt.
(3) SERVICE OF SUBPOENAS.—The subpoenas of
the Commission shall be served in the manner pro-
vided 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. TERMINATION.
The Commission shall terminate 30 days after submit-
ting a report under section 4(c).
SEC. 9. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—There are authorized to be appro-
priated 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.
SEC. 10. BUDGET ACT COMPLIANCE.
Any new contract authority authorized by this Act
shall be effective only to the extent or in the amounts pro-
vided in advance in appropriation Acts.
SEC. 11. PRIVACY PROTECTIONS.
(a) DESTRUCTION OR RETURN OF INFORMATION RE-
QUIRED.—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 in-
dividual 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 infor-
mation from improper use; and
(2) may not disclose such information to any
person, including the Congress or the President, un-
less the individual that is the subject of the informa-
tion has authorized such a disclosure.
(c) PROPRIETARY BUSINESS INFORMATION AND FI-
NANCIAL 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 Com-
mission in the course of carrying out its duties under this
Act.
(d) INDIVIDUALLY IDENTIFIABLE INFORMATION DE-
FINED.—For the purposes of this Act, the term ‘‘individ-
ually identifiable information’’ means any information,
whether oral or recorded in any form or medium, that iden-
tifies an individual, or with respect to which there is a rea-
sonable basis to believe that the information can be used
to identify an individual.
Union Calendar No. 553
106TH CONGRESS
2D SESSION
H. R. 4049
[Report No. 106–919]
A BILL
To establish the Commission for the Comprehensive
Study of Privacy Protection.
SEPTEMBER 29, 2000
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union,
and ordered to be printed