I
103D CONGRESS
1ST SESSION
H. R. 135
To amend the privacy provisions of title 5 United States Code to improve
the protection of individual information and to reestablish a permanent
Privacy Protection Commission as an independent entity in the Federal
Government, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 5, 1993
Mrs. COLLINS of Illinois introduced the following bill; which was referred to
the Committee on Government Operations
A BILL
To amend the privacy provisions of title 5 United States
Code to improve the protection of individual information
and to reestablish a permanent Privacy Protection Com-
mission as an independent entity in the Federal Govern-
ment, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be identified as the ‘‘Individual Privacy
Protection Act of 1993’’.
SEC. 2. FINDINGS AND PURPOSES.
The Congress hereby finds that—
(1) recent advances in information and tele-
communications technologies have rapidly expanded
the collection of personal data on individuals, and
improved the speed and access with which such data
can be retrieved and disseminated;
(2) the increased use of these technologies and
their related systems, channels, and services has se-
rious implications for injury to individual privacy
that can occur from any collection, maintenance,
use, or dissemination of personal information;
(3) neither existing privacy legislation nor the
Communications Act of 1934 provides for the peri-
odic assessment and evaluation of personal privacy
implications regarding data information maintained,
transmitted, or accessed via computer cable, broad-
cast, common carrier, or related new technologies;
(4) the right to privacy is a personal and fun-
damental right protected by the Constitution of the
United States; and
(5) in order to determine the extent to which
the privacy of individuals identified in information
systems maintained by or accessed via cable, broad-
cast, common carrier, and related new technologies
is protected, it is necessary and proper for the Con-
gress to require the collection and evaluation of data
relevant to this purpose.
SEC. 3. DEFINITION OF SYSTEM OF RECORDS.
Section 552a(a)(5) of title 5, United States Code, is
amended to read as follows:
‘‘(5) the term ‘system of records’ means a
group of any records under the control of any agen-
cy in which individual records are—
‘‘(A)(i) systematically filed, stored, or oth-
erwise maintained according to an established
retrieval scheme or indexing structure; and
‘‘(ii) in practice, accessed by use of, or by
reference to, such retrieval scheme or indexing
structure for the principal purpose of retrieving
the record (or any portion thereof) on the basis
of the identity of, or so as to identify, an indi-
vidual; or
‘‘(B) otherwise readily accessible because—
‘‘(i) the agency is able to access the
record without an unreasonable expendi-
ture of time, money, effort, or other re-
sources; or
‘‘(ii) the individual to whom the
record pertains is able to provide suffi-
ciently specific locating information so as
to render the record accessible without
such an unreasonable expenditure;’’.
SEC. 4. DEFINITION OF ROUTINE USE.
Section 552a(a)(7) of title 5, United States Code, is
amended to read as follows:
‘‘(7) the term ‘routine use’ means the use or
disclosure of an individually identifiable record for a
purpose which is—
‘‘(A) compatible with the purpose for
which the information in the record was col-
lected or obtained; and
‘‘(B) consistent with the conditions or rea-
sonable expectations of the use and disclosure
under which the information in the record was
provided, collected, or obtained.’’.
SEC. 5. PENALTIES FOR VIOLATION.
Section 552a(g)(4) of title 5, United States Code, is
amended—
(1) by striking out ‘‘$1,000; and’’ in clause (A)
and inserting in lieu thereof ‘‘$2,000;’’;
(2) by redesignating clause (B) as clause (C),
and;
(3) by inserting after clause (A), the following
new clause:
‘‘(B) general damages sustained by the in-
dividual as a result of the refusal or failure, but
in no case shall a person entitled to recovery re-
ceive less than the sum of $2,000, nor more
than the sum of $20,000 as general damages;
and’’.
SEC. 6. ESTABLISHMENT OF THE INDIVIDUAL PRIVACY
PROTECTION BOARD.
(a) ESTABLISHMENT; MEMBERSHIP; BUDGETARY
AND LEGISLATIVE RECOMMENDATIONS.—(1) There is es-
tablished an Individual Privacy Protection Board (herein-
after referred to as the ‘‘Board’’) which shall be composed
of five members appointed by the President, by and with
the advice and consent of the Senate. Members of the
Board shall be chosen on the basis of their experience,
integrity, impartiality, and good judgment from among in-
dividuals who, at the time of their appointment, are not
elected or appointed officers or employees in the executive,
legislative, or judicial branch of the Government.
(2) Each member of the Board shall hold office for
a term of four years, except that a member may continue
to serve until a successor has taken office. Any vacancy
in the membership of the Board, as long as there are four
members in office, shall not impair the power of the Board
but shall be filled in the same manner in which the original
appointment was made. No member shall be eligible to
serve for more than two complete terms of office on the
Board.
(3) The members of the Board shall elect a Chairman
from among themselves. A quorum of the Board shall con-
sist of a majority of the members, except that the Board
may establish a lower number as a quorum for the purpose
of taking testimony. The Board is authorized to establish
such committees and delegate such authority to them as
may be necessary to carry out its functions. Each member
of the Board, including the Chairman, shall have equal
responsibility and authority in all decisions and actions of
the Board, shall have full access to all information nec-
essary to the performance of their functions, and shall
have one vote. Action of the Board shall be determined
by a majority vote of the members present. The Chairman
(or a member designated by the Chairman to be acting
Chairman) shall be the official spokesman of the Board
in its relations with the Congress, Government agencies,
other persons, and the public, and, on behalf of the Board,
shall see to the faithful execution of the administrative
policies and decisions of the Board, and shall report there-
on to the Board from time to time or as the Board may
direct.
(7) file comments on any proposal (A) to amend
section 552a of title 5, United States Code, or any
regulation promulgated under such section, (B) to
create or modify a system of records, or (C) to es-
tablish or alter routine uses of such a system;
(8) review Federal law, Executive orders, regu-
lations, directives, and judicial decisions and report
on the extent to which they are consistent with the
rights of privacy, due process of law, and other
guarantees in the Constitution; and
(9) comment on the implications for data pro-
tection of proposed Federal, State, or local statutes,
regulations, or procedures.
(c) AUTHORITY TO CONDUCT RESEARCH.—(1) In
the course of conducting the study required under sub-
section (b)(1) of this section, and in its reports thereon,
the Board may research, examine, and analyze—
(A) interstate transfer of information about in-
dividuals that is undertaken through manual files or
by computer or other electronic or telecommuni-
cations means;
(B) data banks and information programs and
systems the operation of which significantly or sub-
stantially affect the enjoyment of the privacy and
other personal and property rights of individuals;
(C) the use of social security numbers, license
plate numbers, universal identifiers, and other sym-
bols to identify individuals in data banks and to gain
access to, integrate, or centralize information sys-
tems and files; and
(D) the matching and analysis of statistical
data, such as Federal census data, with other
sources of personal data, such as automobile reg-
istries and telephone directories, in order to recon-
struct individual responses to statistical question-
naires for commercial or other purposes, in a way
which results in a violation of the implied or explic-
itly recognized confidentiality of such information.
(2)(A) The Board may include in its examination per-
sonal information activities in the following areas: medical;
insurance; education; employment and personnel; credit,
banking and financial institutions; credit bureaus; the
commercial reporting industry; cable television and other
telecommunications media; travel, hotel, and entertain-
ment reservations; and electronic check processing.
(B) The Board shall include in its examination a
study of—
(i) whether a person engaged in interstate com-
merce who maintains a mailing list should be re-
quired to remove an individual’s name and address
from such list upon request of that individual;
(ii) whether the Internal Revenue Service
should be prohibited from transferring individually
identifiable data to other agencies and to agen-
cies of State governments;
(iii) whether the Federal Government should be
liable for general damages incurred by an individual
as the result of a willful or intentional violation of
the provisions of section 552a(g)(1)(C) or (D) of
title 5, United States Code; and
(iv) whether and how the standards for security
and confidentiality of records required under section
552a(e)(10) of such title should be applied when a
record is disclosed to a person other than an agency.
(C) The Board may study such other personal infor-
mation activities necessary to carry out the congressional
policy embodied in this Act, except that the Board
shall not investigate information systems maintained by
religious organizations.
(3) In conducting such study, the Board shall—
(A) determine the laws, Executive orders, regu-
lations, directives, and judicial decisions that govern
the activities under study and the extent to which
they are consistent with the rights of privacy, due
process of law, and other guarantees in the Con-
stitution;
(B) determine to what extent governmental and
private information systems affect Federal-State re-
lations or the principle of separation of powers;
(C) examine the standards and criteria govern-
ing programs, policies, and practices relating to the
collection, soliciting, processing, use, access, integra-
tion, dissemination, and transmission of personal in-
formation; and
(D) to the maximum extent practicable, collect
and utilize findings, reports, studies, hearing tran-
scripts, and recommendations of governmental, legis-
lative and private bodies, institutions, organizations,
and individuals which pertain to the problems under
study by the Board.
(d) ADDITIONAL AUTHORITIES.—In addition to its
other functions the Board may—
(1) request assistance of the heads of appro-
priate departments, agencies, and instrumentalities
of the Federal Government, of State and local gov-
ernments, and of other persons in carrying out its
functions under this Act;
(2) upon request, assist Federal agencies in
complying with the requirements of section 552a of
title 5, United States Code;
(3) determine what specific categories of infor-
mation, the collection of which would violate an indi-
vidual’s right of privacy, should be prohibited by
statute from collection by Federal agencies; and
(4) upon request, prepare model legislation for
use by State and local governments in establishing
procedures for handling, maintaining, and dissemi-
nating personal information at the State and local
level and provide such technical assistance to State
and local governments as they may require in the
preparation and implementation of such legislation.
(e) INVESTIGATIONS
AND
HEARINGS.—(1) The
Board may, in carrying out its functions under this sec-
tion, conduct such inspections, sit and act at such times
and places, hold such hearings, take such testimony, re-
quire by subpoena the attendance of such witnesses and
the production of such books, records, papers, correspond-
ence, and documents, administer such oaths, have such
printing and binding done, and make such expenditures
as the Board deems advisable. A subpoena shall be issued
only upon an affirmative vote of a majority of all members
of the Board. Subpoenas shall be issued under the signa-
ture of the Chairman or any member of the Board des-
ignated by the Chairman and shall be served by any per-
son designated by the Chairman or any such member. Any
member of the Board may administer oaths or affirma-
tions to witnesses appearing before the Board.
(2)(A) Each department, agency, and instrumentality
of the executive branch of the Government is authorized
to furnish to the Board, upon request made by the Chair-
man, such information, data, reports and such other as-
sistance as the Board deems necessary to carry out its
functions under this section. Whenever the head of any
such department, agency, or instrumentality submits a re-
port pursuant to section 552a(o) of title 5, United States
Code, a copy of such report shall be transmitted to the
Board.
(B) In carrying out its functions and exercising its
powers under this section, the Board may accept from any
such department, agency, independent instrumentality, or
other person any individually identifiable data if such data
is necessary to carry out such powers and functions. In
any case in which the Board accepts any such information,
it shall assure that the information is used only for the
purpose for which it is provided, and upon completion of
that purpose such information shall be destroyed or re-
turned to such department, agency, independent instru-
mentality, or person from which it is obtained, as appro-
priate.
(f) PERSONNEL.—(1) The Board shall have the
power to—
(A) appoint and fix the compensation of an ex-
ecutive director, and such additional staff personnel
as may be necessary, without regard to the provi-
sions of title 5, United States Code, governing ap-
pointments in the competitive service, and without
regard to chapter 51 and subchapter III of chapter
53 of such title relating to classification and General
Schedule pay rates, but at rates not in excess of the
maximum rate for GS–18 of the General Schedule
under section 5332 of such title; and
(B) procure temporary and intermittent services
to the same extent as is authorized by section 3109
of title 5, United States Code.
(2) The Board may delegate any of its functions to
such personnel of the Board as the Board may designate
and may authorize such successive redelegations of such
functions as it may deem desirable.
(g) GENERAL AUTHORITY.—The Board is author-
ized—
(1) to adopt, amend, and repeal rules and regu-
lations governing the manner of its operations, orga-
nization, and personnel;
(2) to enter into contracts or other arrange-
ments or modifications thereof, with any govern-
ment, any department, agency, or independent in-
strumentality of the United States, or with any per-
son, firm, association, or corporation, and such con-
tracts or other arrangements, or modifications there-
of, may be entered into without legal consideration,
without performance or other bonds, and without re-
gard to section 3709 of the Revised Statutes (41
U.S.C. 5);
(3) to make advance, progress, and other pay-
ments which the Board deems necessary under this
Act without regard to the provisions of section 3324
of title 31, United States Code; and
(4) to take such other action as may be nec-
essary to carry out its functions under this section.
(h) COMPENSATION AND EXPENSES OF MEMBERS.—
(1) Each member of the Board who is an officer or em-
ployee of the United States shall serve without additional
compensation, but shall continue to receive the salary of
his regular position when engaged in the performance of
the duties vested in the Board.
(2) A member of the Board other than one to whom
paragraph (1) applies shall receive per diem at the maxi-
mum daily rate for GS–18 of the General Schedule when
engaged in the actual performance of the duties vested in
the Board.
(3) All members of the Board shall be reimbursed for
travel, subsistence, and other necessary expenses incurred
by them in the performance of the duties vested in the
Board.
(i) ANNUAL
AND OTHER REPORTS.—The Board
shall, from time to time, and in an annual report, report
to the President and the Congress on its activities in car-
rying out the provisions of this section.
(j) PENALTY FOR VIOLATION OF PRIVACY RIGHTS.—
(1) Any member, officer, or employee of the Board, who
by virtue of his employment or official position, has pos-
session of, or access to, agency records which contain indi-
vidually identifiable information the disclosure of which is
prohibited by this section, and who knowing that disclo-
sure of the specific material is so prohibited, willfully dis-
closes the material in any manner to any person or agency
not entitled to receive it, shall be guilty of a misdemeanor
and fined not more than $5,000.
(2) Any person who knowingly and willfully requests
or obtains any record concerning an individual from the
Board under false pretenses shall be guilty of a mis-
demeanor and fined not more than $5,000.
Æ
HR 135 IH——2