SECTION 1. SHORT TITLE.

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

SEC. 2. AUTHORITY OF OMB TO PROVIDE FOR ACQUISITION AND USE OF 
              ALTERNATIVE INFORMATION TECHNOLOGIES BY EXECUTIVE 
              AGENCIES.

    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 alternative 
                        information technologies that provide for 
                        electronic submission, maintenance, or 
                        disclosure of information as a substitute for 
                        paper and for the use and acceptance of 
                        electronic signatures.''.

SEC. 3. PROCEDURES FOR USE AND ACCEPTANCE OF ELECTRONIC SIGNATURES BY 
              EXECUTIVE AGENCIES.

    (a) In General.--In order to fulfill the responsibility to 
administer the functions assigned under chapter 35 of title 44, United 
States Code, the provisions of the Clinger-Cohen Act of 1996 (divisions 
D and E of Public Law 104-106) and the amendments made by that Act, and 
the provisions of this Act, the Director of the Office of Management 
and Budget shall, in consultation with the National Telecommunications 
and Information Administration and not later than 18 months after the 
date of enactment of this Act, develop procedures for the use and 
acceptance of electronic signatures by Executive agencies.
    (b) Requirements for Procedures.--(1) The procedures developed 
under subsection (a)--
            (A) shall be compatible with standards and technology for 
        electronic signatures that are generally used in commerce and 
        industry and by State governments;
            (B) may not inappropriately favor one industry or 
        technology;
            (C) shall ensure that electronic signatures are as reliable 
        as is appropriate for the purpose in question and keep intact 
        the information submitted;
            (D) shall provide for the electronic acknowledgment of 
        electronic forms that are successfully submitted; and
            (E) shall, to the extent feasible and appropriate, require 
        an Executive agency that anticipates receipt by electronic 
        means of 50,000 or more submittals of a particular form to take 
        all steps necessary to ensure that multiple methods of 
        electronic signatures are available for the submittal of such 
        form.
    (2) The Director shall ensure the compatibility of the procedures 
under paragraph (1)(A) in consultation with appropriate private bodies 
and State government entities that set standards for the use and 
acceptance of electronic signatures.

SEC. 4. DEADLINE FOR IMPLEMENTATION BY EXECUTIVE AGENCIES OF PROCEDURES 
              FOR USE AND ACCEPTANCE OF ELECTRONIC SIGNATURES.

    In order to fulfill the responsibility to administer the functions 
assigned under chapter 35 of title 44, United States Code, the 
provisions of the Clinger-Cohen Act of 1996 (divisions D and E of 
Public Law 104-106) and the amendments made by that Act, and the 
provisions of this Act, the Director of the Office of Management and 
Budget shall ensure that, commencing not later than five years after 
the date of enactment of this Act, Executive agencies provide--
            (1) for the option of the electronic maintenance, 
        submission, or disclosure of information, when practicable as a 
        substitute for paper; and
            (2) for the use and acceptance of electronic signatures, 
        when practicable.

SEC. 5. ELECTRONIC STORAGE AND FILING OF EMPLOYMENT FORMS.

    In order to fulfill the responsibility to administer the functions 
assigned under chapter 35 of title 44, United States Code, the 
provisions of the Clinger-Cohen Act of 1996 (divisions D and E of 
Public Law 104-106) and the amendments made by that Act, and the 
provisions of this Act, the Director of the Office of Management and 
Budget shall, not later than 18 months after the date of enactment of 
this Act, develop procedures to permit private employers to store and 
file electronically with Executive agencies forms containing 
information pertaining to the employees of such employers.

SEC. 6. STUDY ON USE OF ELECTRONIC SIGNATURES.

    (a) Ongoing Study Required.--In order to fulfill the responsibility 
to administer the functions assigned under chapter 35 of title 44, 
United States Code, the provisions of the Clinger-Cohen Act of 1996 
(divisions D and E of Public Law 104-106) and the amendments made by 
that Act, and the provisions of this Act, the Director of the Office of 
Management and Budget shall, in cooperation with the National 
Telecommunications and Information Administration, conduct an ongoing 
study of the use of electronic signatures under this title on--
            (1) paperwork reduction and electronic commerce;
            (2) individual privacy; and
            (3) the security and authenticity of transactions.
    (b) Reports.--The Director shall submit to Congress on a periodic 
basis a report describing the results of the study carried out under 
subsection (a).

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

    Electronic records submitted or maintained in accordance with 
procedures developed under this Act, or electronic signatures or other 
forms of electronic authentication used in accordance with such 
procedures, shall not be denied legal effect, validity, or 
enforceability because such records 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 executive 
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 the prior affirmative consent of the person 
about whom the information pertains.

SEC. 9. APPLICATION WITH INTERNAL REVENUE LAWS.

    No provision of this Act shall apply to the Department of the 
Treasury or the Internal Revenue Service to the extent that such 
provision--
            (1) involves the administration of the internal revenue 
        laws; or
            (2) 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) 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 the electronic message; and
                    (B) indicates such person's approval of the 
                information contained in the electronic message.
            (2) Executive agency.--The term ``Executive agency'' has 
        the meaning given that term in section 105 of title 5, United 
        States Code.

            Passed the Senate October 15 (legislative day, October 2), 
      1998.

            Attest:

                                                    GARY SISCO,

                                                             Secretary.
Government Paperwork Elimination Act - Requires the Director of the Office of Management and Budget:  (1) in providing direction and overseeing the acquisition and use of information technology, to include alternative information technologies that provide for electronic submission, maintenance, or disclosure of information as a substitute for paper and for the use and acceptance of electronic signatures; (2) to develop procedures for the use and acceptance of electronic signatures by executive agencies; (3) to ensure that, within five years, executive agencies provide for the option of electronic maintenance, submission, or disclosure of information as a substitute for paper and for the use and acceptance of electronic signatures, when practicable; (4) to develop procedures to permit private employers to store and file electronically with executive agencies forms containing information pertaining to employees; and (5) in cooperation with the National Telecommunications and Information Administration, to conduct and report to Congress on an ongoing study of the use of electronic signatures on paperwork reduction and electronic commerce, individual privacy, and the security and authenticity of transactions. 
Provides for:  (1) the enforceability and legal effect of electronic records and signatures; (2) protection from disclosure of information collected in the provision of electronic signature services for executive agencies; and (3) applicability exceptions with respect to administration of the internal revenue laws.
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