I
107TH CONGRESS
1ST SESSION
H. R. 3068
To establish a Presidential commission to strengthen and improve financial
privacy and national security.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 9, 2001
Mr. NEY introduced the following bill; which was referred to the Committee
on Financial Services
A BILL
To establish a Presidential commission to strengthen and
improve financial privacy and national security.
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 cited as the ‘‘Financial Privacy and
National Security Enhancement Act’’.
SEC. 2. ESTABLISHMENT.
There is hereby established a commission to be known
as the ‘‘Presidential Commission on Financial Privacy and
National Security’’ (hereafter in this Act referred to as
the ‘‘Commission’’).
SEC. 3. DUTIES OF THE COMMISSION.
(a) IN GENERAL.—The Commission shall conduct an
ongoing study of the practices in the financial service in-
dustry for protecting the privacy of consumer financial in-
formation, the manner and extent to which such practices
are regulated by financial service regulators, and ways to
improve and strengthen financial information privacy
while preserving effective financial information flow for
national security.
(b) SPECIFIC QUESTIONS.—In conducting the study,
the Commission shall address and seek comments on the
following issues:
(1) In what manner and to what extent would
the existence of State financial privacy laws or other
restrictions on the free flow of financial information
impair or hinder the ability of the Federal Govern-
ment to investigate money laundering or fraud, in-
cluding identity theft?
(2) Is the information already being distributed
to the consumers concerning the privacy of consumer
financial information readily understandable and is
it a benefit to the consumer?
(3) What is the cost, to a financial institution
and ultimately to each consumer, of mailing or oth-
erwise distributing privacy notices to each consumer
in accordance with applicable law.
(4) What financial information privacy concerns
are not addressed by title V of the Gramm-Leach-
Bliley Act and other laws and regulations imple-
menting such title?
(5) To what extent is there a uniform agree-
ment among financial regulators on what constitutes
financial privacy and what processes are utilized to
review developments and technological changes in
the delivery of financial services that may affect fi-
nancial privacy?
(6) What would be the potential impact on con-
sumers if there were a variety of requirements with
respect to financial privacy in effect under the laws
of the several States and how would the existence of
such a variety of requirements cost the financial
services industry?
SEC. 4. MEMBERSHIP.
(a) NUMBER AND APPOINTMENT.—The Commission
shall be composed of 11 members :
(d) VACANCY.—A vacancy in the Commission shall
be filled in the manner in which the original appointment
was made.
(e) NO PAY.—Members shall serve without pay.
(f) TRAVEL EXPENSES.—Each member 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.
(h) CHAIRPERSON.—The Chairperson of the Com-
mission shall be elected by the members from the member-
ship of the Commission.
(i) MEETINGS.—
(1) IN GENERAL.—The Commission shall meet
at least once each calendar quarter at the call of the
Chairperson or a majority of the members.
(2) OPEN MEETINGS REQUIRED.—Section 552b
of title 5, United States Code, shall apply.
SEC. 5. DIRECTOR AND STAFF OF COMMISSION; EXPERTS
AND CONSULTANTS.
(a) DIRECTOR.—The Commission may, without re-
gard to section 5311(b) of title 5, United States Code,
have a Director who shall be appointed by the Commis-
sion. The Director shall be paid at a rate not to exceed
$140,000 per year.
(b) STAFF.—The Commission may appoint and fix
the pay of such additional personnel as the Commission
considers appropriate.
(c) APPLICABILITY
OF CERTAIN CIVIL SERVICE
LAWS.—The Director and staff of the Commission may
be appointed without regard to the provisions of title 5,
United States Code, governing appointments in the com-
petitive service, and may be paid without regard to the
provisions of chapter 51 and subchapter III of chapter 53
of that title relating to classification and General Schedule
pay rates, except that an individual so appointed may not
receive pay in excess of $140,000 per year.
(d) EXPERTS AND CONSULTANTS.—Subject to regu-
lations prescribed by the Commission, the Commission
may procure temporary and intermittent services under
section 3109(b) of title 5, United States Code.
(e) STAFF OF FEDERAL AGENCIES.—Upon request
of the Commission, 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 its duties under this Act.
SEC. 6. POWERS OF COMMISSION.
(a) HEARINGS
AND SESSIONS.—The Commission
may, for the purpose of carrying out this Act, hold hear-
ings, sit and act at times and places, take testimony, and
receive evidence as the Commission considers appropriate.
(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 DATA.—The Commission
may secure directly from any department or agency of the
United States information necessary to enable it to carry
out this Act. Upon request of the Chairperson of the Com-
mission, the head of that department or agency shall fur-
nish that information to the Commission.
(d) MAILS.—The Commission may use the United
States mails in the same manner and under the same con-
ditions as other departments and agencies of the United
States.
(e) ADMINISTRATIVE SUPPORT SERVICES.—Upon
the request of the Commission, the Administrator of Gen-
eral Services shall provide to the Commission, on a reim-
bursable basis, the administrative support services nec-
essary for the Commission to carry out its responsibilities
under this Act.
SEC. 7. REPORT.
The Commission shall transmit a final report to the
President and the Congress not later than March 31,
2005. The final report shall contain a detailed statement
of the findings and conclusions of the Commission, to-
gether with its recommendations for such legislative or ad-
ministrative actions as the Commission considers appro-
priate.
SEC. 8. TERMINATION.
The Commission shall terminate 30 days after sub-
mitting its final report pursuant to section 7.
SEC. 9. MORATORIUM ON STATE FINANCIAL PRIVACY
LAWS.
(a) IN GENERAL.—During the period beginning on
the date of the enactment of this Act and ending on the
date the Commission terminates under section 8, no re-
quirement or prohibition may be imposed under the laws
of any State, including laws relating to the business of
insurance, concerning the use or disclosure by a financial
institution of information relating to a consumer that has
obtained a financial product or service from the financial
institution.
(b) EXCEPTION.—Subsection (a) shall not apply
State insurance laws or regulations referred to in section
505(a)(6) of the Gramm-Leach-Bliley Act.
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