I
107TH CONGRESS
1ST SESSION
H. R. 583
To establish the Commission for the Comprehensive Study of Privacy
Protection.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 13, 2001
Mr. HUTCHINSON (for himself, Mr. MORAN of Virginia, Mr. BRADY of Texas,
Ms. GRANGER, Mr. GREENWOOD, Mr. LUCAS of Oklahoma, and Mr.
RILEY) introduced the following bill; which was referred to the Committee
on Government Reform
A BILL
To establish the Commission for the Comprehensive Study
of Privacy Protection.
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 ‘‘Privacy Commission
Act’’.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) Americans are increasingly concerned about
their civil liberties and the security and use of their
personal information, including medical records, edu-
cational records, library records, magazine subscrip-
tion records, records of purchases of goods and other
payments, and driver’s license numbers.
(2) Commercial entities are increasingly aware
that consumers expect them to adopt privacy policies
and take all appropriate steps to protect the per-
sonal information of consumers.
(3) There is a growing concern about the con-
fidentiality of medical records, because there are in-
adequate Federal guidelines and a patchwork of con-
fusing State and local rules regarding privacy pro-
tection for individually identifiable patient informa-
tion.
(4) In light of recent changes in financial serv-
ices laws allowing for increased sharing of informa-
tion between traditional financial institutions and in-
surance entities, a coordinated and comprehensive
review is necessary regarding the protections of per-
sonal data compiled by the health care, insurance,
and financial services industries.
(5) The use of Social Security numbers has ex-
panded beyond the uses originally intended.
(6) Use of the Internet has increased at as-
tounding rates, with approximately 5 million current
Internet sites and 64 million regular Internet users
each month in the United States alone.
(7) Financial transactions over the Internet
have increased at an astounding rate, with 17 mil-
lion American households spending $20 billion shop-
ping on the Internet last year.
(8) Use of the Internet as a medium for com-
mercial activities will continue to grow, and it is esti-
mated that by the end of 2000, 56 percent of the
companies in the United States will sell their prod-
ucts on the Internet.
(9) There have been reports of surreptitious
collection of consumer data by Internet marketers
and questionable distribution of personal information
by on-line companies.
(10) In 1999, the Federal Trade Commission
found that 87 percent of Internet sites provided
some form of privacy notice, which represented an
increase from 15 percent in 1998.
(11) The United States is the leading economic
and social force in the global information economy,
largely because of a favorable regulatory climate and
the free flow of information. It is important for the
United States to continue that leadership. As na-
tions and governing bodies around the world begin
to establish privacy standards, these standards will
directly affect the United States.
(12) The shift from an industry-focused econ-
omy to an information-focused economy calls for a
reassessment of the most effective way to balance
personal privacy and information use, keeping in
mind the potential for unintended effects on tech-
nology development, innovation, the marketplace,
and privacy needs.
(13) This Act shall not be construed to prohibit
the enactment of legislation on privacy issues by the
Congress during the existence of the Commission. It
is the responsibility of the Congress to act to protect
the privacy of individuals, including individuals’
medical and financial information. Various commit-
tees of the Congress are currently reviewing legisla-
tion in the area of medical and financial privacy.
Further study by the Commission established by this
Act should not be considered a prerequisite for fur-
ther consideration or enactment of financial or med-
ical privacy legislation by the Congress.
SEC. 3. ESTABLISHMENT.
There is established a commission to be known as the
‘‘Commission for the Comprehensive Study of Privacy
Protection’’ (in this Act referred to as the ‘‘Commission’’).
SEC. 4. DUTIES OF COMMISSION.
(a) STUDY.—The Commission shall conduct a study
of issues relating to protection of individual privacy and
the appropriate balance to be achieved between protecting
individual privacy and allowing appropriate uses of infor-
mation, including the following:
(1) The monitoring, collection, and distribution
of personal information by Federal, State, and local
governments, including personal information col-
lected for a decennial census, and such personal in-
formation as a driver’s license number.
(2) Current efforts to address the monitoring,
collection, and distribution of personal information
by Federal and State governments, individuals, or
entities, including—
(A) existing statutes and regulations relat-
ing to the protection of individual privacy, such
as section 552a of title 5, United States Code
(commonly referred to as the Privacy Act of
1974) and section 552 of title 5, United States
Code (commonly referred to as the Freedom of
Information Act);
(B) legislation pending before the Con-
gress;
(C) privacy protection efforts undertaken
by the Federal Government, State governments,
foreign governments, and international gov-
erning bodies;
(D) privacy protection efforts undertaken
by the private sector; and
(E) self-regulatory efforts initiated by the
private sector to respond to privacy issues.
(3) The monitoring, collection, and distribution
of personal information by individuals or entities, in-
cluding access to and use of medical records, finan-
cial records (including credit cards, automated teller
machine cards, bank accounts, and Internet trans-
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 in-
volving the disclosure or use of their financial infor-
mation.
(b) FIELD HEARINGS.—
(1) IN GENERAL.—The Commission shall con-
duct at least 2 field hearings in each of the 5 geo-
graphical 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 Presi-
dent.
(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 en-
forcement, medical research, or critical infra-
structure protection.
(F) Cost analysis of legislative or regu-
latory changes proposed in the report.
(G) Analysis of the impact of altering ex-
isting protections for individual privacy on the
overall operation and functionality of the Inter-
net, including the impact on the private sector.
(H) Recommendations on non-legislative
solutions to individual privacy concerns, includ-
ing education, market-based measures, industry
best practices, and new technology.
(I) 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 or mem-
bers 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) 2 members appointed by the President.
(2) 4 members appointed by the majority leader
of the Senate.
(3) 3 members appointed by the minority leader
of the Senate.
(4) 4 members appointed by the Speaker of the
House of Representatives.
(5) 3 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 Presi-
dent, the majority leader of the Senate, and the
Speaker of the House of Representatives.
(b) DIVERSITY OF VIEWS.—The appointing authori-
ties under subsection (a) shall seek to ensure that the
membership of the Commission has a diversity of views
and experiences on the issues to be studied by the Com-
mission, such as views and experiences of Federal, State,
and local governments, the media, the academic commu-
nity, consumer groups, public policy groups and other ad-
vocacy organizations, business and industry (including
small business), the medical community, civil liberties ex-
perts, and the financial 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 re-
ceive travel expenses, including per diem in lieu of subsist-
ence, 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 num-
ber may hold hearings.
(h) MEETINGS.—
(1) IN GENERAL.—The Commission shall meet
at the call of the Chairperson or a majority of its
members.
(2) INITIAL MEETING.—Not later than 45 days
after the date of the enactment of this Act, the
Commission shall hold its initial meeting.
SEC. 6. DIRECTOR; STAFF; EXPERTS AND CONSULTANTS.
(a) DIRECTOR.—
(1) IN GENERAL.—Not later than 30 days after
the appointment of the Chairperson of the Commis-
sion, the Chairperson of the Commission shall ap-
point a Director without regard 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
established under section 5314 of such title.
(b) STAFF.—The Director may appoint staff as the
Director 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 appoint-
ments 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 relat-
ing 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 Direc-
tor, the head of any Federal department or agency
may detail, on a reimbursable basis, any of the per-
sonnel of that department or agency to the Commis-
sion 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 hear-
ings, 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
witnesses 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
submits a request to a Federal department or agen-
cy for information necessary to enable the Commis-
sion to carry out this Act, the head of that depart-
ment or agency shall furnish that information to the
Commission.
(2) EXCEPTION FOR NATIONAL SECURITY.—If
the head of that department or agency determines
that it is necessary to guard that information from
disclosure to protect the national security interests
of the United States, the head shall not furnish 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 Director, the Administrator of General
Services shall provide to the Commission, on a reimburs-
able basis, the administrative support services necessary
for the Commission to carry out this Act.
(f) GIFTS AND DONATIONS.—The Commission may
accept, 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
supplies and services, without regard to section 3709 of
the Revised 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 relat-
ing to any matter that the Commission is empow-
ered to investigate by section 4. The attendance of
witnesses and the production of evidence may be re-
quired by such subpoena from any place within the
United States and at any specified place of hearing
within the United States.
SEC. 8. TERMINATION.
The Commission shall terminate 30 days after sub-
mitting 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 pursu-
ant 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
individual that is the subject of the individually identifi-
able 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
identifies an individual, or with respect to which there is
a reasonable basis to believe that the information can be
used to identify an individual.
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