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104th Congress                                             Rep. 104-520
                        HOUSE OF REPRESENTATIVES

 2d Session                                                      Part 1
_______________________________________________________________________


 
                   PAPERWORK ELIMINATION ACT OF 1996

_______________________________________________________________________


                 April 16, 1996.--Ordered to be printed

                                _______


Mrs. Meyers of Kansas, from the Committee on Small Business, submitted 
                             the following

                              R E P O R T

                        [To accompany H.R. 2715]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Small Business, to whom was referred the 
bill (H.R. 2715) to amend chapter 35 of title 44, United States 
Code, popularly known as the Paperwork Reduction Act, to 
minimize the burden of Federal paperwork demands upon small 
businesses, educational and nonprofit institutions, Federal 
contractors, State and local governments, and other persons 
through the sponsorship and use of alternative information 
technologies, having considered the same, reports favorably 
thereon with an amendment and recommends that the bill as 
amended do pass.

  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Paperwork Elimination Act of 1996''.

SEC. 2. PURPOSES.

  The purpose of this Act is to--
          (1) minimize the burden of Federal paperwork demands upon 
        small businesses, educational and nonprofit institutions, 
        Federal contractors, State and local governments, and other 
        persons through the sponsorship and use of alternative 
        information technologies, including the use of electronic 
        maintenance, submission, or disclosure of information to 
        substitute for paper; and
          (2) more effectively enable Federal agencies to achieve the 
        purposes of chapter 35 of title 44, United States Code, 
        popularly known as the ``Paperwork Reduction Act''.

SEC. 3. AUTHORITY AND FUNCTIONS OF THE DIRECTOR OF THE OFFICE OF 
                    MANAGEMENT AND BUDGET.

  (a) 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.''.
  (b) Promotion of Use of Electronic Information Technology.--Section 
3504(h) of title 44, United States Code, is amended by striking ``and'' 
after the semicolon at the end of paragraph (4), by striking the period 
at the end of paragraph (5) and inserting ``; and'', and by adding at 
the end the following:
          ``(6) specifically promote the optional use of electronic 
        maintenance, submission, or disclosure of information where 
        appropriate, as an alternative information technology to 
        substitute for paper.''.

SEC. 4. ASSIGNMENT OF TASKS AND DEADLINES.

  Section 3505(a)(3) of title 44, United States Code, is amended by 
striking ``and'' after the semicolon at the end of subparagraph (B), by 
striking the period at the end of subparagraph (C) and inserting ``; 
and'', and by adding at the end the following:
                  ``(D) a description of progress in providing for the 
                use of electronic submission, maintenance, or 
                disclosure of information to substitute for paper, 
                including the extent to which such progress 
                accomplishes reduction of burden on small businesses or 
                other persons.''.

SEC. 5. FEDERAL AGENCY RESPONSIBILITIES.

  (a) Providing for Use of Electronic Information Management.--Section 
3506(c)(1)(B) of title 44, United States Code, is amended by striking 
``and'' after the semicolon at the end of clause (ii) and by adding at 
the end the following:
                          ``(iv) provides for the optional use, where 
                        appropriate, of electronic maintenance, 
                        submission, or disclosure of information; 
                        and''.
  (b) Promotion of Electronic Information Management.--Section 
3506(c)(3)(C) of title 44, United States Code, is amended by striking 
``or'' after the semicolon at the end of clause (ii), by adding ``or'' 
after the semicolon at the end of clause (iii), and by adding at the 
end the following:
                          ``(iv) the promotion and optional use, where 
                        appropriate, of electronic maintenance, 
                        submission, or disclosure of information.''.
  (c) Use of Alternative Information Technologies.--Section 
3506(c)(3)(J) of title 44, United States Code, is amended to read as 
follows:
                  ``(J) to the maximum extent practicable, uses 
                alternative information technologies, including the use 
                of electronic maintenance, submission, or disclosure of 
                information, to reduce burden and improve data quality, 
                agency efficiency and responsiveness to the public.''.

SEC. 6. PUBLIC INFORMATION COLLECTION ACTIVITIES; SUBMISSION TO 
                    DIRECTOR; APPROVAL AND DELEGATION.

  Section 3507(a)(1)(D)(ii) of title 44, United States Code, is amended 
by striking ``and'' after the semicolon at the end of subclause (V), by 
adding ``and'' after the semicolon at the end of subclause (VI), and by 
adding at the end the following:
                                  ``(VII) a description of how 
                                respondents may, if appropriate, 
                                electronically maintain, submit, or 
                                disclose information under the 
                                collection of information.''.

SEC. 7. RESPONSIVENESS TO CONGRESS.

  Section 3514(a)(2) of title 44, United States Code, is amended by 
striking ``and'' after the semicolon at the end of subparagraph (C), by 
striking the period at the end of subparagraph (D) and inserting ``; 
and'', and by adding at the end the following:
          ``(E) reduced the collection of information burden on small 
        businesses and other persons through the use of electronic 
        maintenance, submission, or disclosure of information to 
        substitute for paper maintenance, submission, or disclosure of 
        information, including--
                  ``(i) a description of instances where such 
                substitution has added to burden; and
                  ``(ii) specific identification of such instances 
                relating to the Internal Revenue Service.''.

SEC. 8. EFFECTIVE DATE.

  This Act shall take effect October 1, 1997.

                                Purpose

    The purpose of the Paperwork Elimination Act of 1996 is to 
minimize the burden of Federal paperwork demands upon small 
businesses, educational and nonprofit institutions, Federal 
contractors, State and local governments, and other persons 
through the use of alternative information technologies, 
including the use of electronic maintenance, submission, or 
disclosure of information to substitute for paper, and to more 
effectively enable federal agencies to achieve the purposes 
expressed in Chapter 35, Title 44, otherwise known as the 
``Paperwork Reduction Act''.

                                Summary

    In brief, the Paperwork Elimination Act is intended to do 
the following:
          A. Direct Federal agencies to provide the option of 
        electronic submission of information, electronic 
        compliance with regulatory information needs, and 
        electronic disclosure of information to all who respond 
        to federal information needs.
          Section 2 stresses the intention of this legislation 
        to advance the use of alternative information 
        technologies and, in doing so, decrease the burden of 
        paperwork demands by the Federal government. The 
        intended beneficiaries of this legislation are small 
        businesses, educational and nonprofit institutions, 
        Federal contractors, State and local governments, and 
        others. Small businesses, who face a disproportionate 
        burden in complying with Federal regulations, are 
        especially targeted.
          B. Direct the Director of the Office of Management 
        and Budget (OMB) to oversee the implementation of the 
        optional use of electronic submission, maintenance, and 
        disclosure. The Director is to monitor and report on 
        the progress of Federal agencies and how regulatory 
        burdens on small businesses and others have been 
        reduced as a result of using new information 
        technologies.
          Section 3(a) describes the responsibility of the 
        Director of OMB to oversee the acquisition and use of 
        information technology. This section compels the 
        Director to consider alternative information 
        technologies when working with agencies to develop 
        strategy to reduce paperwork burdens.
          Section 3(b) directs the Director of OMB to promote 
        the use of electronic submission, maintenance, and 
        disclosure as an option for entities complying with the 
        regulations of Federal agencies. The provision 
        complements and is added to Sec. 3504(h) of the 
        Paperwork Reduction Act, which outlines the Director's 
        obligations to advance the use of information 
        technology.
          C. Clarify and strengthen provisions within current 
        law requiring agencies to utilize ``information 
        technology'' by specifying that small business and 
        other public persons with access to computers and 
        modems should be enabled to use them when dealing with 
        the Federal government.
          Section 5(a) requires the Federal agencies, when it 
        is appropriate, to provide respondents with the option 
        of maintaining, submitting, or disclosing information 
        electronically when complying with Federal regulations.
          Section 5(b) states that each agency must certify and 
        report on the extent to which it has considered and 
        relieved the burden of paperwork, particularly on small 
        business and individuals, by enabling the optional use 
        of electronic maintenance, submission, or disclosure of 
        information.
          Section 5(c) amends Sec. 3506(c)(3)(J) of the 
        Paperwork Reduction Act to specify that, when 
        certifying and reporting on information technologies 
        used to collect information, Federal agencies must also 
        consider the ability of respondents to electronically 
        maintain, submit and disclose information.

                          Need for Legislation

    As part of continuing efforts to enable the Federal 
government to take advantage of the Information Age, the 
Committee recognized the need to encourage and monitor the 
progress of Federal agencies in their efforts to utilize new 
``information technology'' to reduce the public costs of 
meeting the Federal Governments' information needs. Moreover, a 
specific need is to enable those small businesses, taxpayers, 
and others with access to computers and modems to use them when 
dealing with the Federal government.
    Witnesses before the Small Business Committee have 
estimated that the American public expends an amount of time 
and effort which approximates 510 billion dollars, or some 9 
percent of the Gross Domestic Product of 1992, in order to meet 
the Federal Governments' information needs. Small business 
bears a disproportionate share of that cost.
    The Federal Government is lagging behind the rest of the 
nation in using new technology. Individuals can now send and 
receive mail, accomplish their banking transactions, and even 
read a newspaper from a personal computer. Individuals should 
also be able to conduct much of their business with the 
government by computer as well. The legislation is needed to 
seize the opportunity the Information Age and new information 
technologies present to reduce the huge cumulative burden of 
meeting the Federal Governments' information demands.
    Clearly the need exists to promote and monitor efforts to 
minimize the burden of Federal paperwork demands upon small 
businesses, educational and nonprofit institutions, Federal 
contractors, State and local governments, and other persons 
through the use of alternative information technologies, 
including the use of electronic maintenance, submission, or 
disclosure of information to substitute for paper. 
Congressional oversight activities will be enhanced by 
requiring reporting on the progress of agencies and how 
regulatory burdens have been reduced.
    The Government Programs Subcommittee held hearings in March 
of 1996 and a number of witnesses stressed the need for this 
legislation. All the witnesses went into great detail regarding 
the potential for significant cost savings through the 
implementation information management systems which allow small 
business and the public to use electronic technology.
    These savings would be complemented by increased 
productivity in the workplace due to the reduction in time 
spent on paperwork submission and update. Mr. Marvin Beriss of 
MB Associates, Inc., an expert in database and information 
technology, stated that the intelligent electronic form saves 
time by automatically populating fields on the same form that 
require the same information, such as the name, social security 
number, etc. Additionally, if such forms are used as part of a 
Form Set comprised of multiple forms, the common information 
can be automatically propagated to all the forms in the set. 
This technology has the potential to save significant time 
spent filling in the forms while at the same time insuring 
consistency and efficiency. It makes for a more efficient 
process.
    ``The Paperwork Elimination Act'' amends Chapter 35, Title 
44, The Paperwork Reduction Act of 1995 by requiring all 
Federal agencies provide the option of electronic submission of 
information, electronic compliance with regulations, and 
electronic disclosure of information to all who must comply 
with Federal regulations. Furthermore, Federal agencies would 
be prohibited from collecting information until they have first 
published a notice in the Federal Register detailing how the 
information may be maintained, submitted, or disclosed 
electronically. The Director of the Office of Management and 
Budget [OMB] would be required to oversee the implementation of 
electronic submission, compliance, and disclosure and to 
monitor and report on the progress of Federal agencies and how 
regulatory burdens on small businesses have been reduced.
    ``The Paperwork Elimination Act'' amends and complements 
The Paperwork Reduction Act of 1995, which has resulted in 
reducing regulatory burdens. The Elimination Act strengthens 
the generic statute. It clarifies provisions within the law 
requiring agencies to consider and utilize ``information 
technology'' by specifying that those small businesses and 
public persons with access to computers and modems should have 
the option to use them when dealing with the Federal 
government.
    The Elimination Act emphasizes that opportunities for the 
public to use electronic technologies for data submission 
should be optional. The Act will in no way hinder the ability 
of small businesses and individuals without access to computers 
and modems to comply with Federal paperwork requirements. The 
Act merely requires Federal agencies to consider and provide 
the option to those who wish and are able to use the 
technology.

                            Committee Action

    H.R. 2715, the Paperwork Elimination Act, was introduced on 
December 5, 1995, by Government Programs Subcommittee Chairman 
Peter G. Torkildsen, for himself, Congresswomen Meyers and 
Smith, Congressmen Talent, Manzullo, Zeliff, Ewing, Jones, 
LoBiondo, Bartlett, Meehan, Chrysler, Metcalf, and Ramstad.
    After introduction, the bill was referred to both the 
Committee on Government Reform and Oversight, and the Committee 
on Small Business. On March 27, 1996, Chairman Torkildsen held 
a hearing on H.R. 2715 to consider all of the bill's 
provisions.
    Witnesses at the March 27, 1996 hearing included: The 
Honorable Sally Katzen, Administrator, Office of Information 
and Regulatory Affairs (OIRA), Office of Management and Budget; 
The Honorable Jere Glover, Chief Counsel, U.S. Small Business 
Administration, Office of Advocacy; Ms. Monika Harrison, 
Associate Administrator, Office of Business Initiatives, U.S. 
Small Business Administration; Mr. Pedro Alfonso, President, 
Dynamic Concepts Inc., testifying on behalf of National Small 
Business United; Mr. Marvin Beriss, President, MB Associates 
Inc.; and Melvin Gerald, M.D., testifying on behalf of the 
American Academy of Family Physicians.
    At the hearing, OIRA Administrator Katzen testified, ``As 
we read this bill, it makes very clear Congress' expectation 
that agencies are to do everything they can to provide 
opportunities for, and indeed promote the use of, electronic 
maintenance, submission, or disclosure of information''.
    She further stated that, ``* * * in signing the 1995 PRA, 
President Clinton specifically recognized the concerns now 
reflected in H.R.2715; `* * * from this point forward, I want 
all of our agencies to provide for the electronic submission of 
every new government form or demonstrate to OMB why it cannot 
be done that way. The old way will still be available, but I 
think once people see how fast and efficient electronic filing 
can be, we'll see less paperwork and more of these' ''.
    Ms. Katzen proceeded to testify to the regulations issued 
by OMB on August 29 of 1995, implementing the 1995 PRA. As part 
of those regulations, OMB explicitly included provisions 
directed at this Congressional and Presidential interest in 
having agencies expand the opportunities for the public to 
submit information electronically. Ms. Katzen suggested an 
amendment to Section 5(a) of the bill which was later adopted 
by the Committee and added to the bill.
    Another witness, Chief Counsel for Advocacy, Jere Glover, 
testified that ``it is clear that the innovations can lead to 
significant cost savings by eliminating paper copies and the 
need for expensive file storage. To the extent that the current 
legislative proposal, H.R. 2715, clarifies Congressional intent 
behind the Paperwork Reduction Act of 1995, by requiring 
agencies to permit the `Optional' electronic filing of reports, 
the Office of Advocacy believes it can benefit small business--
at least those with electronic capability.''
    Small business witnesses testified favorably on the cost 
and time savings that would result from the implementation of 
this legislation.
    A preliminary estimate from the Congressional Budget Office 
[CBO] reports that, ``H.R. 2715 would not significantly 
increase costs to the Federal government.'' CBO goes on to say 
that the technology already exists to allow Federal agencies to 
comply with the Act and that the administrative cost of 
directing and overseeing the initiative would not be 
significant. Also, as confirmed by CBO, the bill contains no 
mandates, as defined in Public Law 104-4.
    After taking into consideration the testimony of the 
witnesses at the March 27, 1996 hearing and the comments from 
the Congressional Budget Office on H.R. 2715, the Committee on 
Small Business held a mark-up of H.R. 2715 on March 29, 1996. 
By voice vote, and a requisite quorum of the Committee members 
present, the full Committee voted to report H.R. 2715, as 
amended, favorably to the full House.
    After reviewing the legislation and a detailed legislative 
history created by the Small Business Committee, including the 
CBO findings, Chairman Clinger, on behalf of the Committee on 
Government Reform and Oversight, waived that Committee's 
jurisdiction over this legislation.

                      Section-by-Section Analysis

                         Section 1. Short Title

    This legislation is entitled the ``Paperwork Elimination 
Act of 1996.''

                          Section 2. Purposes

    Section 2 stresses the intention of this legislation to 
advance the use of alternative information technologies and, in 
so doing, decrease the burden of paperwork demands by the 
Federal government. The intended beneficiaries of this 
legislation are small businesses, educational and nonprofit 
institutions, Federal contractors, State and local governments, 
and others. Of particular importance are the small businesses 
who face a disproportionate burden in complying with Federal 
regulations. Alternative technologies suggested to substitute 
for paper include electronic maintenance, submission, or 
disclosure of information. The Paperwork Elimination Act of 
1995 intends to assist Federal agencies fulfill the purposes 
and goals of the Paperwork Reduction Act.

  Section 3. Authority and Functions of the Director of the Office of 
                         Management and Budget

Subsection (a)

    The authority and responsibility of the Director of the 
Office of Management and Budget [OMB] to ``provide direction 
and oversee the acquisition and use of information technology'' 
is described. This subsection compels the Director to consider 
alternative information technologies, when developing strategy 
to reduce paperwork burdens.

Subsection (b)

    The Director of OMB is required to promote the use of 
electronic submission, maintenance, and disclosure of 
information as an option for entities complying with the 
regulatory information needs of Federal agencies. The provision 
is added to Sec. 3504(h) of the Paperwork Reduction Act (44 
U.S.C. 35) which outlines the Director's obligations to advance 
the use of information technology.

              Section 4. Assignment of Tasks and Deadlines

    This section adds to the requirement that requires the 
Director of OMB, in consultation with the General Services 
Administration [GSA], National Institute of Standards and 
Technology [NIST], National Archives and Records Administration 
[NARA], and Office of Personnel Management [OPM], provide a 
progress report on the status and success of efforts to advance 
information resources management. This report must include the 
extent to which the paperwork burden on small businesses and 
individuals has been relieved as a result of the use of 
electronic submission, maintenance, or disclosure of 
information to substitute for paper on small business and other 
persons.

               Section 5. Federal Agency Responsibilities

Subsection (a)

    Federal agencies are required, when it is appropriate, to 
provide respondents with the option of maintaining, submitting, 
or disclosing information electronically when complying with 
Federal regulations.

Subsection (b)

    Each Federal agency must certify and report on the extent 
to which it has relieved the burden of paperwork, particularly 
on small business and individuals, by allowing the maintenance, 
submission, and disclosure of information electronically.

Subsection (c)

    Sec. 3506(c)(3)(J) of the Paperwork Reduction Act is 
amended to specify that, when certifying and reporting on 
alternative technologies used to collect information, Federal 
agencies must also consider the ability of respondents to 
electronically maintain, submit and disclose information. The 
intent is to reduce burden, improve data quality, and make 
agencies more efficient and responsive.

  Section 6. Public Information Collection Activities; Submission to 
                   Director; Approval and Delegation

    Section 6 prohibits agencies from collecting information 
until they have first published a notice in the Federal 
Register describing how the information may, if appropriate, be 
electronically maintained, submitted, or disclosed by a 
respondent.

                    Section 7. Response to Congress

    When responding to Congress annually or at other times, the 
Director of OMB must report on how the collection of 
information by electronic means has affected regulatory burdens 
on small businesses and other persons. This report must 
specifically include any instances in which the maintenance, 
submission, or disclosure of information electronically, as 
opposed to with paper, increased regulatory burden. It should 
also specifically identify instances referring to the 
information required from small businesses by the Internal 
Revenue Service [IRS].

                       Section 8. Effective Date

    The provisions of this bill shall take effect on October 1, 
1997.

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, April 15, 1995.
Hon. Jan Meyers,
Chairman, Committee on Small Business,
House of Representatives, Washington, DC.
    Dear Madam Chair: The Congressional Budget Office has 
reviewed H.R. 2715, the Paperwork Elimination Act of 1995, as 
ordered reported by the House Committee on Small Business on 
March 29, 1996. CBO estimates that H.R. 2715 would not 
significantly affect spending by the federal government. 
Because the bill would not affect spending or receipts, pay-as-
you-go procedures would not apply.
    H.R. 2715 would build on the Paperwork Reduction Act of 
1995, which was signed into law on May 22, 1995 (Public Law 
104-13). Specifically, the bill would encourage the use of 
electronic information technology by federal agencies as a way 
of reducing the burden on individuals and businesses that 
disclose information to or contract with the federal 
government. In addition, the bill would designate the Office of 
Management and Budget (OMB) as the agency responsible for 
promoting and monitoring the use of these technologies.
    The bill, however, would not require agencies to acquire 
and implement new information technologies, and the authority 
to use these technologies already exists. Consequently, we 
estimate that H.R. 2715 would not significantly increase costs 
to the federal government. Implementing H.R. 2715 would 
increase administrative costs at OMB to direct and oversee 
government-wide activities involving the use of alternative 
information technologies; we estimate that such additional 
costs would not be significant.
    H.R. 2715 contains no intergovernmental or private sector 
mandates, as defined in Public Law 104-4, and would have no 
direct budgetary impact on state, local, or tribal governments.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is John R. 
Righter.
            Sincerely,
                                              James L. Blum
                                   (For June E. O'Neill, Director).
                              ----------                              

                          House of Representatives,
              Committee on Government Reform and Oversight,
                                     Washington, DC, April 3, 1996.
Hon. Jan Meyers,
Chairman, Committee on Small Business,
Washington, DC.
    Dear Chairman Meyers: This letter responds to your request 
that the Committee on Government Reform and Oversight waive its 
primary jurisdiction over H.R. 2715, the Paperwork Elimination 
Act of 1995, as introduced on December 5, 1995. After reviewing 
this legislation and the detailed legislative history created 
by your Committee, I have agreed to waive this Committee's 
jurisdiction over this legislation.
    H.R. 2715 would build on the Paperwork Reduction Act of 
1995, which was signed into law on May 22, 1995 (Public Law 
104-13). Specifically, the bill would encourage the use of 
electronic information technology by federal agencies as a way 
of reducing the burden on individuals and businesses that 
disclose information to or contract with the federal 
government. In addition, the bill would designate the Office of 
Management and Budget as the agency responsible for promoting 
and monitoring the use of these technologies.
    As you know, House Rule X, Establishment and jurisdiction 
of standing committees, grants the Government Reform and 
Oversight Committee with jurisdiction over ``Federal paperwork 
reduction.'' Our wavier of H.R. 2715 is not designed to limit 
our jurisdiction over any future consideration of Federal 
paperwork reduction legislation.
    Thank you for your hard work in this area.
            Sincerely,
                                 William F. Clinger, Jr., Chairman.

                     Inflationary Impact Statement

    Pursuant to clause 2(l)(4) of rule XI of the House of 
Representatives, the committee estimates that H.R. 2715 will 
have no inflationary impact on prices and costs in the 
operation of the national economy.

                           Oversight Findings

    In accordance with clause (l)(3)(D) of rule XI of the House 
of Representatives, the Committee states that no oversight 
findings or recommendations have been made by the Committee on 
Government Reform and Oversight with respect to the subject 
matter contained in H.R. 2715.
    In accordance with clause 2(l)(3)(A) of rule XI and clause 
2(b)(1) of rule X of the House of Representatives, the 
oversight findings and recommendations of the committee on 
Small Business with respect to the subject matter contained in 
H.R. 2715 are incorporated into the descriptive portions of 
this report.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3 of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

                      TITLE 44, UNITED STATES CODE

          * * * * * * *

         CHAPTER 35--COORDINATION OF FEDERAL INFORMATION POLICY

          * * * * * * *

Sec. 3504. Authority and functions of Director

    (a)(1) The Director shall oversee the use of information 
resources to improve the efficiency and effectiveness of 
governmental operations to serve agency missions, including 
burden reduction and service delivery to the public. In 
performing such oversight, the Director shall--
          (A) develop, coordinate and oversee the 
        implementation of Federal information resources 
        management policies, principles, standards, and 
        guidelines; and
          (B) provide direction and oversee--
                  (i) * * *
          * * * * * * *
                  [(vi) the acquisition and use of information 
                technology.]
                  (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.
          * * * * * * *
    (h) With respect to Federal information technology, the 
Director shall--
          (1) * * *
          * * * * * * *
          (4) ensure, through the review of agency budget 
        proposals, information resources management plans and 
        other means--
                  (A) agency integration of information 
                resources management plans, program plans and 
                budgets for acquisition and use of information 
                technology; and
                  (B) the efficiency and effectiveness of 
                inter-agency information technology initiatives 
                to improve agency performance and the 
                accomplishment of agency missions; [and]
          (5) promote the use of information technology by the 
        Federal Government to improve the productivity, 
        efficiency, and effectiveness of Federal programs, 
        including through dissemination of public information 
        and the reduction of information collection burdens on 
        the public[.]; and
          (6) specifically promote the optional use of 
        electronic maintenance, submission, or disclosure of 
        information where appropriate, as an alternative 
        information technology to substitute for paper.

Sec. 3505. Assignment of tasks and deadlines

    (a) In carrying out the functions under this chapter, the 
Director shall--
          (1) * * *
          * * * * * * *
          (3) in consultation with the Administrator of General 
        Services, the Director of the National Institute of 
        Standards and Technology, the Archivist of the United 
        States, and the Director of the Office of Personnel 
        Management, develop and maintain a Governmentwide 
        strategic plan for information resources management, 
        that shall include--
                  (A) * * *
                  (B) plans for--
                          (i) reducing information burdens on 
                        the public, including reducing such 
                        burdens through the elimination of 
                        duplication and meeting shared data 
                        needs with shared resources;
                          (ii) enhancing public access to and 
                        dissemination of, information, using 
                        electronic and other formats; and
                          (iii) meeting the information 
                        technology needs of the Federal 
                        Government in accordance with the 
                        purposes of this chapter; [and]
                  (C) a description of progress in applying 
                information resources management to improve 
                agency performance and the accomplishment of 
                missions[.]; and
                  (D) a description of progress in providing 
                for the use of electronic submission, 
                maintenance, or disclosure of information to 
                substitute for paper, including the extent to 
                which such progress accomplishes reduction of 
                burden on small businesses or other persons.
          * * * * * * *

Sec. 3506. Federal agency responsibilities

  (a) * * *
          * * * * * * *
    (c) With respect to the collection of information and the 
control of paperwork, each agency shall--
          (1) establish a process within the office headed by 
        the Chief Information Officer designated under 
        subsection (a), that is sufficiently independent of 
        program responsibility to evaluate fairly whether 
        proposed collections of information should be approved 
        under this chapter, to--
                  (A) * * *
                  (B) ensure that each information collection--
                          (i) is inventoried, displays a 
                        control number and, if appropriate, an 
                        expiration date;
                          (ii) indicates the collection is in 
                        accordance with the clearance 
                        requirements of section 3507; [and]
          * * * * * * *
                          (iv) provides for the optional use, 
                        where appropriate, of electronic 
                        maintenance, submission, or disclosure 
                        of information; and
          * * * * * * *
          (3) certify (and provide a record supporting such 
        certification, including public comments received by 
        the agency) that each collection of information 
        submitted to the Director for review under section 
        3507--
                  (A) * * *
          * * * * * * *
                  (C) reduces to the extent practicable and 
                appropriate the burden on persons who shall 
                provide information to or for the agency, 
                including with respect to small entities, as 
                defined under section 601(6) of title 5, the 
                use of such techniques as--
                          (i) establishing differing compliance 
                        or reporting requirements or timetables 
                        that take into account the resources 
                        available to those who are to respond;
                          (ii) the clarification, 
                        consolidation, or simplification of 
                        compliance and reporting requirements; 
                        [or]
                          (iii) an exemption from coverage of 
                        the collection of information, or any 
                        part thereof; or
                          (iv) the promotion and optional use, 
                        where appropriate, of electronic 
                        maintenance, submission, or disclosure 
                        of information.
          * * * * * * *
                  [(J) to the maximum extent practicable, uses 
                information technology to reduce burden and 
                improve data quality, agency efficiency and 
                responsiveness to the public.]
                  (J) to the maximum extent practicable, uses 
                alternative information technologies, including 
                the use of electronic maintenance, submission, 
                or disclosure of information, to reduce burden 
                and improve data quality, agency efficiency and 
                responsiveness to the public.
          * * * * * * *

Sec. 3507. Public information collection activities; submission to 
                    Director; approval and delegation

  (a) An agency shall not conduct or sponsor the collection of 
information unless in advance of the adoption or revision of 
the collection of information--
          (1) the agency has--
                  (A) * * *
          * * * * * * *
                  (D) published a notice in the Federal 
                Register--
                          (i) stating that the agency has made 
                        such submission; and
                          (ii) setting forth--
                                  (I) * * *
          * * * * * * *
                                  (V) an estimate of the burden 
                                that shall result from the 
                                collection of information; 
                                [and]
                                  (VI) notice that comments may 
                                be submitted to the agency and 
                                Director; and
                                  (VII) a description of how 
                                respondents may, if 
                                appropriate, electronically 
                                maintain, submit, or disclose 
                                information under the 
                                collection of information.
          * * * * * * *

Sec. 3514. Responsiveness to Congress

  (a)(1) * * *
  (2) The Director shall include in any such report a 
description of the extent to which agencies have--
          (A) * * *
          * * * * * * *
          (C) improved public access to Government information; 
        [and]
          (D) improved program performance and the 
        accomplishment of agency missions through information 
        resources management[.]; and
          (E) reduced the collection of information burden on 
        small businesses and other persons through the use of 
        electronic maintenance, submission, or disclosure of 
        information to substitute for paper maintenance, 
        submission, or disclosure of information, including--
                  (i) a description of instances where such 
                substitution has added to burden; and
                  (ii) specific identification of such 
                instances relating to the Internal Revenue 
                Service.
          * * * * * * *