[Pages S6890-S6894]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. McCONNELL:
S. 2985. A bill to authorize the Secretary of the Interior to conduct
a study to assess the suitability and feasibility of designating
certain land in the State of Kentucky as the Kentucky Wildlands
National Heritage Area, and for other purposes; to the Committee on
Energy and Natural Resources.
Mr. McCONNELL. Mr. President, I ask unanimous consent that the text
of the bill be printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 2985
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Kentucky Wildlands National
Heritage Area Study Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Heritage area.--The term ``Heritage Area'' means the
Kentucky Wildlands National Heritage Area.
(2) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(3) State.--The term ``State'' means the State of Kentucky.
(4) Study area.--The term ``study area'' means--
(A) Adair, Bath, Bell, Boyd, Breathitt, Carter, Casey,
Clay, Clinton, Cumberland, Elliott, Floyd, Green, Harlan,
Jackson, Johnson, Knott, Knox, Laurel, Lawrence, Lee, Leslie,
Letcher, Lincoln, Magoffin, Martin, McCreary, Menifee,
Metcalfe, Monroe, Morgan, Owsley, Perry, Pike, Pulaski,
Rockcastle, Rowan, Russell, Wayne, Whitley, and Wolfe
Counties in the State; and
(B) any other areas in the State that--
(i) have heritage aspects that are similar to the heritage
aspects of the areas described in subparagraph (A); and
(ii) are adjacent to, or in the vicinity of, the areas
described in that subparagraph.
SEC. 3. STUDY.
(a) In General.--The Secretary, in consultation with State
and local historic preservation officers, State and local
historical societies, State and local tourism offices, and
other appropriate organizations and governmental agencies,
shall conduct a study to assess the suitability and
feasibility of designating the study area as a National
Heritage Area, to be known as the ``Kentucky Wildlands
National Heritage Area''.
(b) Requirements.--The study shall include analysis,
documentation, and determinations on whether the study area--
(1) has an assemblage of natural, historic, and cultural
resources that--
(A) represent distinctive aspects of the heritage of the
United States;
(B) are worthy of recognition, conservation,
interpretation, and continuing use; and
(C) would be best managed--
(i) through partnerships among public and private entities;
and
(ii) by linking diverse and sometimes noncontiguous
resources and active communities;
(2) reflects traditions, customs, beliefs, and folklife
that are a valuable part of the story of the United States;
(3) provides outstanding opportunities--
(A) to conserve natural, historic, cultural, or scenic
features; and
(B) for recreation and education;
(4) contains resources that--
(A) are important to any identified themes of the study
area; and
(B) retain a degree of integrity capable of supporting
interpretation;
(5) includes residents, business interests, nonprofit
organizations, and State and local governments that--
(A) are involved in the planning of the Heritage Area;
(B) have developed a conceptual financial plan that
outlines the roles of all participants in the Heritage Area,
including the Federal Government; and
(C) have demonstrated support for the designation of the
Heritage Area;
(6) has a potential management entity to work in
partnership with the individuals and entities described in
paragraph (5) to develop the Heritage Area while encouraging
State and local economic activity;
(7) could impact the rights of private property owners with
respect to private property; and
(8) has a conceptual boundary map that is supported by the
public.
SEC. 4. REPORT.
Not later than 3 years after the date on which funds are
first made available to carry out this Act, the Secretary
shall submit to the Committee on Energy and Natural Resources
of the Senate and the Committee on Natural Resources of the
House of Representatives a report that describes--
(1) the findings of the study under section 3; and
(2) any conclusions and recommendations of the Secretary.
______
By Mr. WYDEN (for himself and Mr. Cassidy):
S. 2989. A bill to amend title XI of the Social Security Act to
clarify the mailing requirement relating to social security account
statements; to the Committee on Finance.
Mr. WYDEN. Mr. President, I along with Finance Committee member
Senator Cassidy are introducing a bill to make a common-sense, low-cost
change to the law that will help American workers help themselves when
preparing for retirement: The Know Your Social Security Act. This bill
is simple: it clarifies the law about Congressional intent so that
every worker over 25 receives a Social Security statement in the mail
each year, unless the worker has accessed their statement online or
declined to receive the statement in the mail.
The history of the Social Security statement runs right through the
Senate and the ``powerful'' Committee on Finance. Senator Daniel
Patrick Moynihan summed up the intent very well: ``All of us pay into
Social Security but rarely, until we become beneficiaries, do we ever
hear from Social Security . . . . in every paycheck, we see money
withheld for Social Security, but we hear nary a word from the Social
Security Administration. Let us take this simple step [sending
statements] to reassure Americans that Social Security will be there
for them.'' The Social Security statement has three goals: to provide
workers with information about their Social Security benefits, to help
workers plan for the future, and enable workers to review their
earnings records.
After enactment and once fully phased in, every worker aged 25 and
older received an annual statement from Social Security starting in the
year 2000. After a few years, Social Security's website allowed workers
to obtain a Social Security statement online. At the time, the online
option was a good step forward in customer service. But as sometime
happens, advances in technology shortchanged good intentions. Due to
tight budgets, SSA came to view the online option as
[[Page S6891]]
``providing'' the worker with a statement and fulfilling their
responsibilities under the law. SSA stopped mailing the statements in
2011 in order to shift resources towards other priorities. Currently,
only individuals over the age of 60 who are not receiving benefits
receive statements through the mail.
Paper statements delivered through the mail are desirable because no
action is necessary by the worker and the statement is a yearly
reminder to the worker to think about the future. Research has shown
that workers provided with statements are significantly more likely to
save, more certain about their retirement income, and have higher
satisfaction with their finances relative to those who are not provided
with any type of financial planning materials. Providing Social
Security statement through the mail is a simple policy that could help
many workers, hopefully leading to better decisions about their
financial future.
Ways and Means Social Security Subcommittee Chairman John Larson and
Ways and Means Committee Member Vern Buchanan are introducing the
companion bill in the House of Representatives. We have received
letters of endorsement from AARP, the Coalition for Paper Options,
Justice in Aging, the National Committee to Preserve Social Security
and Medicare, Paralyzed Veterans of America, Social Security Works, The
Arc of the United States and The Senior Citizens League. I ask that the
letters be included in the Record following my remarks.
I hope my colleagues in the Senate will join us and cosponsor the
Know Your Social Security Act. Together, we can work towards better
retirement outcomes for all Americans.
AARP,
Washington, DC, December 5, 2019.
Hon. Ron Wyden,
Ranking Member, Committee on Finance,
U.S. Senate, Washington, DC.
Hon. Bill Cassidy,
Committee on Finance,
U.S. Senate, Washington, DC.
Dear Ranking Member Wyden and Senator Cassidy: On behalf of
our nearly 38 million members and all older Americans
nationwide, AARP is pleased to endorse the Know Your Social
Security Act. This bipartisan bill would once again place
vital, paper Social Security statements in the hands of
millions of Americans, to help them more effectively plan for
retirement, identify fraud and correct earnings records, and
better understand their stake in Social Security.
The Social Security statement is an essential financial
planning tool that provides key information on an
individual's earnings and payroll tax contributions record,
as well as an estimate of their earned monthly benefits. When
Social Security sends this statement through the mail, more
Americans are able to better plan for their future, not only
due to an increased understanding of their Social Security
benefits, but also any gaps in their current retirement plan.
Having a hard copy of your Social Security statement also
allows an individual to spot and correct errors or even to
detect outright fraud. Finding and correcting these errors in
a timely manner will save workers and the Social Security
Administration frustration, time and money. Finally, when
Americans receive an annual statement in the mail, it helps
them better understand the importance of Social Security as
part of their overall retirement plan. Paper statements are
annual reminders, especially to younger workers, that they
have contributed to Social Security and have earned a stake
in the program.
AARP believes strongly that all Americans, unless they opt-
out, should have access to their Social Security statements
via mail. We are pleased to endorse the Know Your Social
Security Act to once again place vital, paper statements in
the hands of millions of Americans. If you have any
questions, please feel free to contact me, or have your staff
contact Tom Nicholls on our Government Affairs staff at
tnicholls@aarp.org or (202) 434-3765.
Sincerely,
Cristina Martin Firvida,
Vice President, Federal Financial Security & Consumer
Affairs,
Government Affairs.
____
The Coalition for Paper Options,
Washington, DC, December 5, 2019.
Hon. John Larson,
House of Representatives,
Washington, DC.
Hon. Vern Buchanan,
House of Representatives,
Washington, DC.
Hon. Ron Wyden,
U.S. Senate,
Washington, DC.
Hon. Bill Cassidy,
U.S. Senate,
Washington, DC.
Dear Representatives Larson, Buchanan and Senators Wyden
and Cassidy: The Coalition for Paper Options--an alliance of
consumer organizations, labor unions, rural advocates, and
print communications industry leaders is pleased to support
today's introduction of the bipartisan Know Your Social
Security Act. Introduced in both the House and Senate, the
bill would require the Social Security Administration to
reinstate the mailing of annual Statement of Earnings until
such time as a wage earner establishes an on line account.
The annual Statement, which summarizes each wage earner's
recorded earnings and projects future retirement benefits,
has been hailed as one of the most important financial
planning tools that most Americans will ever see, yet the
Social Security Administration stopped sending these
statements to workers in 2017 without any congressional
oversight. A report released in February 2019 by the Social
Security Administration's Inspector General highlights a
tremendous decline in overall access since the primarily
online-only policy took place.
The Know Your Social Security Act would reinstate the
mailing of the Statements until a wage earner accesses their
account through the my Social Security online portal. This
would allow the Social Security Administration to economize
as online participation grows, but it would not force
citizens into online access before they choose or are able to
manage it.
CPO's diverse network of allies includes: Consumer Action,
Social Security Works, the National Consumers League, the
National Grange, the National Association of Letter Carriers,
as well as leading organizations in the paper and print
communications industry is pleased to endorse this important
legislation and offer our full support.
Regards,
John Runyan,
Executive Director.
____
Justice in Aging,
Washington, DC, December 4, 2019.
Dear Representatives Larson and Buchanan, and Senators
Wyden and Cassidy: Justice in Aging endorses the bipartisan
Know Your Social Security Act, which would reaffirm SSA's
obligation to send Social Security statements by mail to all
workers each year. This legislation would clarify SSA's duty
and ensure that workers understand the Social Security
benefits they are earning over time.
Many people are not fully aware of the level of Social
Security benefits they could receive when they retire, nor do
they realize the Social Security benefits available for
themselves and their family members in the event that they
experience a disability that limits their capacity to work,
or in the event that they pass away leaving a spouse, young
children, or other eligible survivors. The Know Your Social
Security Act would provide this important information, as
required, to ensure that workers know what benefits are
available to them and their loved ones, allowing them to
better plan for retirement as they age.
We believe it is not only SSA's obligation to send these
statements, but that it is vital to the well-being of workers
who need to be fully informed about their potential Social
Security benefits in order to make decisions about their own
working lives, and their retirement. While those who choose
to get this information electronically and decline a paper
statement have clearly demonstrated their awareness of the
benefits they may receive in the future, others who do not
make this choice should receive the statement in the mail as
required under the law. For these reasons, Justice in Aging
supports this bill.
Sincerely,
Tracey Gronniger,
Director of Economic Security.
____
National Committee to Preserve,
Social Security & Medicare,
Washington, DC, December 4, 2019.
Hon. John B. Larson,
Chairman, Subcommittee on Social Security, Committee on Ways
and Means, Washington, DC.
Hon. Vern Buchanan,
Washington, DC.
Hon. Ron Wyden,
Ranking Member, Committee on Finance,
Washington, DC.
Hon. Bill Cassidy, M.D.,
Washington, DC.
Dear Chairman Larson, Congressman Buchanan, Ranking Member
Wyden and Senator Cassidy: On behalf of the millions of
members and supporters of the National Committee to Preserve
Social Security and Medicare, I am writing to endorse your
bill, the Know Your Social Security Act. This important
legislation requires the Social Security Administration to
resume annual mailing of Social Security statements to all of
the estimated 150 million American workers who are eligible
to receive them, and have not otherwise accessed them through
their My SSA account.
For nearly a decade now, SSA has unilaterally nullified
section 1143 of the Social Security Act by refusing to mail
annual statements to workers, even though section 1143 is
unambiguously clear that such statements are required. The
Know Your Social Security Act clarifies that mailings are
required, a measure that is deeply appreciated by our
members.
The Social Security statement is one of the many enduring
legacies left to the nation by one of its most distinguished
lawmakers, Senator Daniel Patrick Moynihan of New York. He
regarded the statement as a simple and efficient way of
building public
[[Page S6892]]
support and understanding for Social Security. Not
surprisingly, Senator Moynihan's simple, common sense
amendment worked as intended while SSA was producing the
statements each year. In fact, the bipartisan Social Security
Advisory Board of 10 years ago found that SSA's own survey
data showed ``. . . a link between increasing public
confidence and receipt of a statement. People who receive a
statement not only experience higher knowledge of Social
Security than non-recipients, but also exhibit greater
confidence that the program still will be there for them when
they need it.''
The statement also raises workers' awareness of the need
for retirement planning by focusing attention on their future
retirement income. It brings clarity to an often confusing
and perplexing subject by providing a starting point: the
individual's estimated Social Security benefits, whether
retirement, survivors or disability insurance. From there,
workers can determine how much more they need to save for the
future. Because the statements were intended to reach people
early in their working lives, they provided an invaluable
service.
Another important function of the Social Security
statement, if it were to be delivered annually as Congress
intended, would be to enable workers to determine the
accuracy of the wage records maintained by SSA for each
worker. As the statement indicates, workers are encouraged to
review the chart showing their reported wages, comparing the
amounts reflected on SSA's records with information from the
worker's own records. Workers are further advised that only
they can perform this function and that they should report
discrepancies to SSA as soon as possible.
We have been especially concerned that, with the suspension
of statements to all but those who are approaching retirement
age, few workers have been able to check the accuracy of
SSA's wage records. The annual statement, when it was being
provided, helped to assure that if errors were made in the
reporting of wages that they could be quickly discovered and
corrected while the required evidence would still be readily
at hand. Since SSA has suspended the statements now for
nearly a decade, we are concerned that many errors in SSA's
records will go undetected and that some workers' benefits
will be reduced as a result.
As mentioned earlier, one function performed by annual
distribution of Social Security statements was to inform
workers of the kinds of benefits that are provided by Social
Security. The statements focused on retirement, survivors,
and disability benefits. In other words, the statements were
an invaluable annual tutorial of what Social Security is all
about. And knowledge about Social Security is vitally
important to the successful functioning of the program. We
see that reflected in recent work that finds that one reason
for the seemingly inexplicable recent decline in disability
applications is related to the suspension of the statements.
Clearly, restoration of annual production and mailing of the
annual statements, as is required in the Know Your Social
Security Act, is long overdue.
When it was being mailed to all eligible workers, the
Social Security statement was able to play a critical role in
building and strengthening public confidence in Social
Security. It provided workers with the only meaningful pre-
retirement information that they ever received about the
program and the benefits they could expect when they retire
or otherwise qualify for benefits. SSA's decision to end
annual mailings has harmed many workers. It is time for SSA
to undo this harmful decision and to follow the clear,
unambiguous requirements of the law to mail statements to all
eligible workers. We applaud you for your leadership in
introducing the Know Your Social Security Act, and look
forward to working with you to enact this important measure.
Sincerely,
Max Richtman,
President and CEO.
____
Paralyzed Veterans of America,
Washington, DC, December 5, 2019.
Hon. Ron Wyden,
Ranking Member, Senate Finance Committee,
U.S. Senate, Washington, DC.
Hon. Bill Cassidy,
Senate Finance Committee,
U.S. Senate, Washington, DC.
Hon. John Larson,
Chairman, Ways and Means Social Security Subcommittee, House
of Representatives, Washington, DC.
Hon. Vern Buchanan,
Ways and Means Committee,
House of Representatives, Washington, DC.
Dear Senators Wyden and Cassidy, Chairman Larson and
Representative Buchanan: Paralyzed Veterans of America (PVA)
is pleased to support the Know Your Social Security Act. PVA
is the nation's only Congressionally chartered veterans
service organization solely dedicated to representing
veterans with spinal cord injuries and/or disorders. Many of
our members are among the nine million veterans who receive
Social Security retirement or disability benefits. Others are
among the millions of veterans and military service members
and their families who will at some point in their lives
benefit from the system.
For many years, the Social Security Administration (SSA)
issued paper earnings and benefits statements that helped to
inform people about their status under Social Security and
what they might expect to receive in retirement or in the
event of a catastrophic disability. When SSA suspended that
practice in favor of disseminating the statements only
online, it meant that people who lack internet access or who
prefer not to set up an internet account lost access to that
information. These Americans are then denied knowing about
what they have accumulated on their earnings record, what
their retirement benefits might be, what they might receive
in spousal benefits, or the fact they qualify for disability
or survivor benefits.
As we understand, your bill will clarify that the existing
requirement in the Social Security Act for SSA to provide an
annual Social Security Statement means providing this
document by mail. The bill also clarifies that SSA may
provide an on-demand electronic statement when an individual
chooses electronic delivery. Furthermore, the bill stipulates
that SSA has met its requirement to mail an annual statement
if individuals have accessed their statements electronically
in the prior year and have declined to receive their
statements by mail for that year.
This will be a very helpful measure for millions of
Americans. PVA thanks you for introducing the Know Your
Social Security Act and urges Congress to do all it can to
quickly pass this bipartisan legislation this year.
Sincerely,
Heather Ansley,
Associate Executive Director,
Government Relation.
____
Social Security Works,
Washington, DC, December 5, 2019.
Hon. Ron Wyden,
Washington, DC.
Hon. John Larson,
Washington, DC.
Hon. Bill Cassidy,
Washington, DC.
Hon. Vern Buchanan,
Washington, DC.
Dear Chairman Wyden, Senator Cassidy, Chairman Larson, and
Representative Buchanan: We strongly endorse your new
legislation, the Know Your Social Security Act. Your bill
clarifies the important law Congress passed in 1989 requiring
the Social Security Administration (SSA) to mail Social
Security earnings statements to those earning benefits with
every paycheck.
When the late Senator Daniel Patrick Moynihan introduced
the original earnings statement legislation in 1988, he
explained one of the reasons mailing these statements is so
crucial:
``All of us pay into Social Security but rarely, until we
become beneficiaries, do we ever hear from Social Security .
. . every month, in every paycheck, we see money withheld for
Social Security, but we hear nary a word from the Social
Security Administration. Let us take this simple step
[mailing Social Security earnings statements] to reassure
Americans that Social Security will be there for them . . .''
Social Security earnings statements help families plan for
the future. The statements educate and inform working
families of the kinds of benefits they are earning.
Crucially, they allow workers to identify and correct their
earnings records in a timely way, when mistakes are made.
Your wise legislation clarifies that these vital statements
are to be mailed automatically each year. Distressingly, more
and more private and public services are being shifted to
individuals. This should not happen with Social Security. As
technology continues to progress, there is a tendency for
administrators to lean more on its capabilities and move
communications with consumers and constituents online.
Electronic communication is, no doubt, desired in many
situations. However, the most important financial documents,
including the Social Security earnings statements, should
default to postal mail as intended by the original law.
That the earnings statements be mailed is vital for
everyone, including those who have access to high speed
computing. Of course, not everyone even has this kind of
access. For example, a 2018 Pew Research Survey found that
one in four Americans living in rural areas lack reliable
access to high speed internet service. Other polling found
that Americans, even those between ages 18 and 29, prefer not
to receive important information from SSA online.
We applaud your effort to clarify the requirement that
annual Social Security earnings statements be mailed. We are
confident that the Know Your Social Security Act will help
strengthen Social Security. We look forward to working with
you to see this excellent bipartisan legislation become law
quickly.
Sincerely,
Nancy J. Altman,
President.
Alex Lawson,
Executive Director.
[[Page S6893]]
____
The Arc,
December 4, 2019.
Representative Larson,
Washington, DC.
Senator Wyden,
Washington, DC.
Representative Buchanan,
Washington, DC.
Senator Cassidy,
Washington, DC.
Dear Representative Larson, Representative Buchanan,
Senator Wyden, and Senator Cassidy: The Arc of the United
States writes in support of the Know Your Social Security
Act. The Arc is the largest national community-based
organization advocating for people with intellectual and
developmental disabilities (I/DD) and their families.
Social Security statements are a crucial tool to help
recipients plan for their future by providing accurate
information about their earnings and future benefits. In
addition, the statement raises awareness about all Social
Security benefits, including about the Disability and
Survivors Insurance that helps many people with I/DD. It also
allows claimants to ensure that their earnings records are
accurate.
We are concerned that recent changes that the Social
Security Administration has made to only mail paper
statements to a limited population means that many people are
not receiving this crucial information. While the information
may be available via the My Social Security website, less
than half of registered users of the website checked their
statements in 2018. In addition, low income households are
less likely to have internet access at home and be able to
access the website, despite the importance of Social Security
benefits to these households; using library or other public
internet sources is not advised due to the highly private
nature of the information and the risk of identity theft.
Without mailed statements, those households may have no
access to the crucially important information about their
Social Security benefits in the statement necessary to plan
for their futures.
For these reasons, we strongly support the Know Your Social
Security Act. Please contact Bethany Lilly at
lilly@thearc.org with any questions, or if you would like to
further discuss these issues.
Sincerely,
Bethany Lilly,
Director of Income Policy.
____
The Senior Citizens League,
Alexandria, VA, December 4, 2019.
Hon. Vern Buchanan,
Washington, DC.
Hon. Bill Cassidy,
Washington, DC.
Hon. John Larson,
Washington, DC.
Hon. Ron Wyden,
Washington, DC.
Dear Congressmen Buchanan, Congressman Larson, Senator
Cassidy and Senator Wyden: On behalf of the approximately one
million supporters of The Senior Citizens League (TSCL), I
would like to thank you for being true champions for Social
Security beneficiaries.
The Senior Citizens League lends its enthusiastic support
to the ``Know Your Social Security Act''. Every American who
pays into Social Security has a right to see a written
statement from Social Security to ensure their record is
accurate, and to learn the estimated amount of their
benefits. A printed record is important for those who do not
have the means to routinely access their record
electronically and it serves as a critical planning tool for
determining the best retirement dates. Regular receipt of
these statements serves to remind and educate older workers
of the benefits of staying in the workforce. Doing so
strengthens retirement benefits, strengthens Social Security
and strengthens our national economy.
As such, TSCL salutes you for introducing legislation that
clarifies that the requirement in the Social Security Act for
SSA to provide an annual Social Security Statement means
providing it by mail. The bill also clarifies that SSA may
provide an on-demand statement electronically when the
individual chooses electronic delivery for that request; and
that SSA has met its requirement to mail an annual Statement
if an individual has accessed their Statement electronically
in the prior year and has declined to receive their Statement
by mail for that year.
We look forward to informing our supporters about your
leadership on this important issue in Congress. In the
meantime, if we may be of assistance to you or your staff in
any way, please do not hesitate to call upon us. Again, thank
you for being a positive voice for America's seniors.
Sincerely,
Rick Delaney,
Chairman.
______
By Mr. THUNE:
S. 2990. A bill to require that the Federal Government procure from
the private sector the goods and services necessary for the operations
and management of certain Government agencies, and for other purposes;
to the Committee on Homeland Security and Governmental Affairs.
Mr. THUNE. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 2990
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Freedom from Government
Competition Act of 2019''.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) Private sector business concerns, which are free to
respond to the private or public demands of the marketplace,
constitute the strength of the United States economic system.
(2) Competitive private enterprises are the most
productive, efficient, and effective sources of goods and
services.
(3) Unfair Government competition with the private sector
of the economy is detrimental to the United States economic
system.
(4) Unfair Government competition with the private sector
of the economy is at an unacceptably high level, both in
scope and in dollar volume.
(5) Current law and policy have failed to address
adequately the problem of unfair Government competition with
the private sector of the economy.
(6) It is in the public interest that the Federal
Government establish a consistent policy to rely on the
private sector of the economy to provide goods and services
necessary for or beneficial to the operation and management
of Federal agencies and to avoid unfair Government
competition with the private sector of the economy.
SEC. 3. DEFINITIONS.
In this Act, the term ``agency'' means--
(1) an executive department as defined by section 101 of
title 5, United States Code;
(2) a military department as defined by section 102 of such
title; and
(3) an independent establishment as defined by section
104(l) of such title.
SEC. 4. PROCUREMENT FROM PRIVATE SOURCES.
(a) Policy.--In the process of governing, the Federal
Government should not compete with its citizens. The
competitive enterprise system, characterized by individual
freedom and initiative, is the primary source of national
economic strength. In recognition of this principle, it has
been and continues to be the general policy of the Federal
Government--
(1) to rely on commercial sources to supply the products
and services the Government needs;
(2) to refrain from providing a product or service if the
product or service can be procured more economically from a
commercial source; and
(3) to utilize Federal employees to perform inherently
governmental functions (as that term is defined in section 5
of the Federal Activities Inventory Reform Act of 1998
(Public Law 105-270; 112 Stat. 2384)).
(b) General Rule.--Except as provided in subsection (c) and
notwithstanding any other provision of law, each agency shall
obtain all goods and services necessary for or beneficial to
the accomplishment of its authorized functions by procurement
from private sources.
(c) Exemptions.--Subsection (b) shall not apply to an
agency with respect to goods or services if--
(1) the goods or services are required by law to be
produced or performed, respectively, by the agency; or
(2) the head of the agency determines and certifies to
Congress in accordance with regulations promulgated by the
Director of the Office of Management and Budget that--
(A) Federal Government production, manufacture, or
provision of a good or service is necessary for the national
defense or homeland security;
(B) a good or service is so critical to the mission of the
agency or so inherently governmental in nature that it is in
the public interest to require production or performance,
respectively, by Government employees; or
(C) there is no private source capable of providing the
good or service.
(d) Method of Procurement.--The provision of goods and
services not exempt under subsection (c) shall be performed
by an entity in the private sector through--
(1) the divestiture of Federal involvement in the provision
of a good or service;
(2) the award of a contract to an entity in the private
sector, using competitive procedures, as defined in section
152 of title 41, United States Code, and section 2302 of
title 10, United States Code; or
(3) conducting a public-private competitive sourcing
analysis in accordance with the procedures established by the
Office of Management and Budget and determining that using
the assets, facilities, and performance of the private sector
is in the best interest of the United States and that
production or performance, respectively, by the private
sector provides the best value to the taxpayer.
(e) Contracted Activities.--The head of an agency may
utilize Federal employees to provide goods or services
previously provided by an entity in the private sector upon
completion of a public-private competitive sourcing analysis
described in subsection (d)(3), and after making a
determination that the provision of such goods or services by
Federal employees provides the best value to the taxpayer.
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(f) Regulations.--The Director of the Office of Management
and Budget shall promulgate such regulations as the Director
considers necessary to carry out this section. In
promulgating such regulations, the Director shall assure that
any State or territory, or political subdivision of a State
or territory, complies with the policy and implements the
requirements of this section when expending Federal funds.
SEC. 5. STUDY AND REPORT.
The Director of the Office of Management and Budget, after
consultation with the Comptroller General of the United
States, shall carry out a study to evaluate the activities
carried out in each agency, including those identified as
commercial and inherently governmental in nature in the
inventory prepared pursuant to the Federal Activities
Inventory Reform Act of 1998 (Public Law 105-270; 31 U.S.C.
501 note) and shall transmit a report to the Congress prior
to June 30 of each year. The report shall include--
(1) an evaluation of the justification for exempting
activities pursuant to section 4(c); and
(2) a schedule for the transfer of commercial activities to
the private sector, pursuant to section 4(d), to be completed
within 5 years after the date on which such report is
transmitted to the Congress.
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