To establish a Presidential commission to strengthen and improve financial privacy and national security.

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 industry for protecting the 
privacy of consumer financial information, 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 Government to investigate money laundering or 
        fraud, including 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 otherwise 
        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 implementing such title?
            (5) To what extent is there a uniform agreement 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 financial privacy?
            (6) What would be the potential impact on consumers 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 :
            (1) The Chairman of the Securities and Exchange Commission, 
        or a Commissioner of the Securities and Exchange Commission 
        designated by the Chairman.
            (2) The Chairman of the Board of Governors of the Federal 
        Reserve System, or a member of such Board designated by the 
        Chairman.
            (3) The Secretary of the Treasury, or an officer of the 
        Department of the Treasury designated by the Secretary.
            (4) The Attorney General, or an officer of the Department 
        of Justice designated by the Attorney General.
            (5) A State insurance commissioner appointed by the 
        President after consulting with the National Association of 
        Insurance Commissioners.
            (6) The Speaker of the House of Representatives, or a 
        designee of the Speaker.
            (7) The minority leader of the House of Representatives, or 
        a designee of the minority leader.
            (8) The majority leader of the Senate, or a designee of the 
        majority leader.
            (9) The minority leader of the Senate, or a designee of the 
        minority leader.
            (10) 2 members appointed by the President from among 
        individuals who are especially well qualified to serve by 
        virtue of their education, training, and experience in the 
        financial services industry.
    (b) Continuation of Membership.--If a member was appointed to the 
Commission as a Member of Congress or by virtue of such member's 
position in the House of Representatives, the Senate, or a Federal 
agency and the member ceases to be a Member of Congress or to serve in 
any such position that member may continue as a member for not longer 
than the 30-day period beginning on the date that member ceases to be a 
Member of Congress or serve in such position.
    (c) Terms.--
            (1) In general.--Each member shall be appointed for the 
        life of the Commission.
            (2) Vacancies.--Any member appointed to fill a vacancy 
        occurring before the expiration of the term for which the 
        member's predecessor was appointed shall be appointed only for 
        the remainder of that term. A member may serve after the 
        expiration of that member's term until a successor has taken 
        office.
    (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 Commission shall be 
elected by the members from the membership 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 regard to section 
5311(b) of title 5, United States Code, have a Director who shall be 
appointed by the Commission. 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 competitive 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 regulations 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 hearings, sit and act at times and places, 
take testimony, and receive evidence as the Commission considers 
appropriate.
    (b) Powers of Members and Agents.--Any member or agent of the 
Commission may, if authorized by the Commission, take any action which 
the Commission is authorized 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 Commission, the head of that department or agency 
shall furnish that information to the Commission.
    (d) Mails.--The Commission may use the United States mails in the 
same manner and under the same conditions as other departments and 
agencies of the United States.
    (e) Administrative Support Services.--Upon the request of the 
Commission, the Administrator of General Services shall provide to the 
Commission, on a reimbursable basis, the administrative support 
services necessary 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, together with its recommendations for such legislative or 
administrative actions as the Commission considers appropriate.

SEC. 8. TERMINATION.

    The Commission shall terminate 30 days after submitting 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 requirement 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.

Summary: Financial Privacy and National Security Enhancement Act - Establishes the Presidential Commission on Financial Privacy and National Security to study and report to Congress on financial service industry practices for protecting the privacy of consumer financial information, 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.Imposes a moratorium on State financial privacy laws during the period the Commission is performing its duties.