[Pages S11324-S11325]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        INTERNET TAX FREEDOM ACT

  The Senate continued with consideration of the bill.


                 Amendments Nos. 3678 and 3679, en bloc

  Mr. McCAIN. Mr. President, I send two amendments en bloc to the desk 
on behalf of Senator Bryan and Senator Abraham and ask for their 
immediate consideration.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       The Senator from Arizona [Mr. McCain] proposes amendments 
     numbered 3678 and 3679, en bloc.

  The amendments (Nos. 3678 and 3679), en bloc, are as follows:


                           amendment no. 3678

       At the end of the bill add the following new title:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Government Paperwork 
     Elimination Act.''

     SEC. 2. DIRECTION AND OVERSIGHT OF INFORMATION TECHNOLOGY.

       Section 3504(a)(1)(B)(vi) of title 44, United States Code, 
     is amended to read as follows:
       ``(vi) the acquisition and use of information technology, 
     including the use of alternative information technologies 
     (such as the use of electronic submission, maintenance, or 
     disclosure of information) to substitute for paper, and the 
     use and acceptance of electronic signatures.''.

     SEC. 3. PROCEDURES.

       (a) Within 18 months after enactment of this Act, in order 
     to fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use.
       (1) The procedures shall be compatible with standards and 
     technology for electronic signatures as may be generally used 
     in commerce and industry and by State governments, based upon 
     consultation with appropriate private sector and State 
     government standard setting bodies.
       (2) Such procedures shall not inappropriately favor one 
     industry or technology.
       (3) An electronic signature shall be as reliable as is 
     appropriate for the purpose, and efforts shall be made to 
     keep the information submitted intact.
       (4) Successful submission of an electronic form shall be 
     electronically acknowledged.
       (5) In accordance with all other sections of the Act, to 
     the extent feasible and appropriate, and described in a 
     written finding, an agency, when it expects to receive 
     electronically 50,000 or more submittals of a particular 
     form, shall take all steps necessary to ensure that multiple 
     formats of electronic signatures are made available for 
     submitting such forms.

     SEC. 4. AUTHORITY AND FUNCTIONS OF THE DIRECTOR OF THE OFFICE 
                   OF MANAGEMENT AND BUDGET.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 35 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget shall ensure that, within five years of 
     the date of enactment of this Act, executive agencies provide 
     for the optional use of electronic maintenance, submission, 
     or disclosure of information where practicable, as an 
     alternative information technology to substitute for paper, 
     and the use and acceptance of electronic signatures where 
     practicable.

     SEC. 5. ELECTRONIC STORAGE OF FORMS.

       Within 18 months of enactment of this Act, in order to 
     fulfill the responsibility to administer the functions 
     assigned under chapter 35 of title 44, United States Code, 
     the Clinger-Cohen Act of 1996 (P.L. 104-106), and the 
     provisions of this Act, the Director of the Office of 
     Management and Budget shall develop procedures and guidelines 
     for executive agency use to permit employer electronic 
     storage and filing of forms containing information pertaining 
     to employees.

     SEC. 6. STUDY.

       In order to fulfill the responsibility to administer the 
     functions assigned under chapter 34 of title 44, United 
     States Code, the Clinger-Cohen Act of 1996 (P.L. 104-106), 
     and the provisions of this Act, the Director of the Office of 
     Management and Budget, shall conduct an ongoing study of 
     paperwork reduction and electronic commerce, the impact on 
     individual privacy, and the security and authenticity of 
     transactions due to the use of electronic signatures pursuant 
     to this Act, and shall report the findings to Congress.

     SEC. 7. ENFORCEABILITY AND LEGAL EFFECT OF ELECTRONIC 
                   RECORDS.

       Electronic records submitted or maintained in accordance 
     with agency procedures and guidelines established pursuant to 
     this title, or electronic signatures or other forms of 
     electronic authentication used in accordance with such 
     procedures and guidelines, shall not be denied legal effect, 
     validity or enforceability because they are in electronic 
     form.

     SEC. 8. DISCLOSURE OF INFORMATION.

       Except as provided by law, information collected in the 
     provision of electronic signature services for communications 
     with an agency, as provided by this Act, shall only be used 
     or disclosed by persons who obtain, collect, or maintain such 
     information as a business or government practice, for the 
     purpose of facilitating such communications, or with

[[Page S11325]]

     the prior affirmative consent of the person about whom the 
     information pertains.

     SEC. 9. APPLICATION WITH OTHER LAWS.

       Nothing in this title shall apply to the Department of the 
     Treasury or the Internal Revenue Service, to the extent 
     that--
       (1) it involves the administration of the internal revenue 
     laws; and
       (2) it conflicts with any provision of the Internal Revenue 
     Service Restructuring and Reform Act of 1998 or the Internal 
     Revenue Code of 1986.

     SEC. 10. DEFINITIONS.

       For purposes of this Act:
       (1) Executive agency.--The term ``executive agency'' has 
     the meaning given that term in section 105 of title 5, United 
     States Code.
       (2) Electronic signature.--The term ``electronic 
     signature'' means a method of signing an electronic message 
     that--
       (A) identifies and authenticates a particular person as the 
     source of such electronic message; and
       (B) indicates such person's approval of the information 
     contained in such electronic message.
       (e) Form, questionnaire, or survey.--The term ``form'', 
     ``questionnaire'', and ``survey'' include documents produced 
     by an agency to facilitate interaction between an agency and 
     non-government persons.


                           Amendment No. 3679

(Purpose: To add the provisions of S. 2326, as ordered reported by the 
   Committee on Commerce, Science, and Transportation and as further 
               modified, as a separate title to the bill)

  (The text of amendment No. 3679 is printed in today's Record under 
``Amendments Submitted.'')
  Mr. McCAIN. Mr. President, these two amendments are not relevant, but 
they are acceptable to both sides.
  The PRESIDING OFFICER. The question is on agreeing to the amendments 
en bloc.
  The amendments (Nos. 3678 and 3679) were agreed to.
  Mr. McCAIN. I move to reconsider the vote, and I move to lay that 
motion on the table.
  The motion to lay on the table was agreed to.


                           Amendment No. 3678

  Mr. ABRAHAM. Mr. President, I want to take a moment to discuss 
language that has been added to this legislation, the ``Government 
Paperwork Elimination Act.'' In May, I introduced S. 2107 to enhance 
electronic commerce and promote the reliability and integrity of 
commercial transactions through the establishment of authentication 
standards for electronic communications. S. 2107 was reported by the 
Committee on Commerce, Science, and Transportation last month.
  After the bill was reported, it was discovered that the bill was 
erroneously referred to the Commerce Committee and should have been 
referred to the Committee on Governmental Affairs. S. 2107 deals with 
Federal government information issues and, according to the 
parliamentarian, falls directly within the jurisdiction of Governmental 
Affairs. I understand a similar bill had been approved by Governmental 
Affairs last Congress.
  Obviously, this was discovered late in the session. Nevertheless, 
Senator Thompson, the chairman of the Governmental Affairs Committee, 
worked with me to develop language which combines language from the 
bill reported by his Committee last Congress and S. 2107. I want to 
thank my colleague from Tennessee for his help and insight. He spent a 
great deal of time assisting me with this legislation and, in my 
opinion, his language makes many improvements to the original bill.
  Mr. THOMPSON. Mr. President, I thank my colleague from Michigan for 
his hard work on and dedication to information technology issues. The 
Committee on Governmental Affairs which I chair has had a long and 
involved history with this issue.
  This language which we are discussing today seeks to take advantage 
of the advances in modern technology to lessen the paperwork burdens on 
those who deal with the Federal government. This is accomplished by 
requiring the Office of Management and Budget, through its existing 
responsibilities under the ``Paperwork Reduction Act'' and the 
``Clinger-Cohen Act,'' to develop policies to promote the use of 
alternative information technologies, including the use of electronic 
maintenance, submission, or disclosure of information to substitute for 
paper, and the use and acceptance of electronic signatures.
  The Federal government is lagging behind the rest of the nation in 
using new technologies. Individuals who deal with the Federal 
government should be able to reduce the cumulative burden of meeting 
the Federal government's information demands through the use of 
information technology. This language hopefully will provide the 
motivation that the Federal government needs to make this possible for 
our nation's citizens.
  I thank Senator Abraham for offering us the opportunity to work with 
him on this important issue.

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