,:oNGREssIoNAL ' RESEARCH SERVICE RRRRRRR OF CCCCCC SS Imu:iiifijj][mijtfitjymiflmfiiflitiII PRIVACY: CONCEPTS ANI>PROBLEMS ISSUE BRIEF NUMBER IB7u123 AUTHOR: Collins, Sarah P. Gov ernm ent Div i sion THE LIBRARY OF CONGRESS CONGRESSIONAL RESEARCH SERVICE HAJOR ISSUES SYSTEM DATE ORIGINATED lgggggzg DATE UPDATED gggggggg FOR ADDITIONAL INFORMATION CALL 287-5700 0828 CRS¢ 1 IB7G123 flPBATE°O8/28/80 l§§E§-2§ElElIlQ! The rapid proliferation of automated data banks in American society, and especially in the Federal Government, has lent credence to the worries of many that the Nation's tradition of limited Government is in jeopardy. In response, the propriety of governmental and.corporate information gathering and dissemination is being reconsidered. Recently, Congress has passed several pieces of legislation to regulate information practices. One of the more controversial issues related to the information question is that of the individual's right to privacy. Two aspects:of privacy are of concern: the "right to be let alone“ refers to the collection of information about the individual, while the "right to control information about oneself" refers to the maintenance and dissemination of that information. EAQ§§BQ!E2-AEQ-2QLl§I-§HALZ§l§ The legal and political genesis of privacy is usually attributed to Warren and Brandeis (see References) who defined it in tort law as a "right to be let alone," an expression borrowed from a treatise in 1888 by Judge Thomas Cooley. While the thrust of the Warren and Brandeis article was toward excluding the press from family and social matters, it also gave emphasis to privacy threats created by new technologies. Later, in his dissent (glaaaaaa v. ga;aaa_ §aaaa§, 277 xU.S. H38, 478 (1927)), Justice Brandeis again emphasized the technological threat of which wiretapping, the issue in the case, was merely an example. ' In subsequent years, the Supreme Court asserted a right to associational privacy (yaagg v. alabaaa, 357 U.S. HQ9 (1958),) to marital privacy (ggiaggld v. gaaaaggigaa, 381 U.S. 478 (1965)), and to other sexual matters (gagia A§Bl§-Ih§§E§£-l Vo §lé£QQ: 413 U-5- "9 (1973): 32% V- EQQE: 410 U-5- 113 (1973)). A different form of privacy began to concern the Federal Government in the 19605 and 1970s, however. The proposal for a National Data Center, the Watergate revelations, controversy over the content of census questionnaires, disclosures of military surveillance of civilians, and an increasing use of the social security account number as a standard universal identifier stimulated executive and congressional responses. In 1973, an advisory committee to the Secretary of the Department of Health, Education and Welfare (HEW)(see REFERENCES) reported that the Federal Government was collecting and retaining too much data about individuals, and that the increased computerization of individual records constituted a threat to personal privacy. Presidents Nixon and Ford responded by including privacy in the agenda of the Domestic Council. Congress also responded by enacting several laws designed to protect the confidentiality of personally identifiable records: (1) The Fair Credit Reporting Act of 1970 (P.L. 91-508; Title VI, 15 U.S.C. 1681 at_ aaga) regulates consumer reports (information about bill-paying habits) and investigative consumer reports (information relating t behavioral traits such as drinking. habits). Both collectors (credit agencies) and users (e.g., department stores and lenders) are regulated. The consumer has the right to know the nature and sources of the information CRS- 2 IB7Q123 UPDATE-O8/23/80 contained in the files of the consumer reporting agency and procedures are available for correcting or disputing material in the report. Enforcement is by a civil suit by the consumer and noncompliance with the Act is an unfair trade practice within the jurisdiction of the FTC. (2) The Crime Control Act of 1973 (P.L. 93-83; 42 U.S.C. 3771; 40 F.R. 22114 (May 20, 1975)) limits the use of criminal history files which contain identification information and arrest, court disposition, appeals, and custody data. Individuals have the opportunity for access to their records and to correct erroneous information. However, investigative files are exempt from the Act's provisions. 3 (3) The Family Educational Rights and Privacy Act of 1970 (P.L. 93-380; 20 U.S.C. 1232g) regulates school records of all educational institutions receiving Federal funds. Parents or the pupil have a right to see the information collected on the pupil and to object to the accuracy and dissemination of information about him or her. In addition, all instructional material used in connection with , any research or experimentation program must be available for inspection by parents. Enforcement is through administrative proceedings in which HEW may cut off Federal funds to schools in noncompliance with the Act. (H) Equal Credit Opportunity Act (P.L. 93-495, as amended by P.L. 94-239) outlaws credit discrimination on the basis of age, race, color, religion, national origin, sex, or marital status, receipt of income from public assistance programs and good faith exercises of rights under the Consumer Credit Protection Act. The creditor is barred from discriminating on the grounds listed, but shall request as part of any application information such as race, national origin, sex, marital status, and age.) Applicants are to be informed that this information is requested by the Federal_ Government for monitoring compliance with Federal anti-discrimination statutes._ Records are to be maintained by the creditor for 25 months and notification of any adverse action taken is to be given to the applicant, complete with specific reasons for credit refusal. (5) The Privacy Act of 1974 (P.L. 93-579; 5 U.S.C. 552a) gives each individual a measure of control over information maintained about him or herself by the Federal Government. Agencies must report on the number and kinds of files it keeps, must keep the information accurate, timely and complete, and must allow the record subject.access to the information and a chance to challenge the accuracy of the information. Agencies are restricted in their use of the information, and in their disclosure of the information. Civil remedies are available to persons whc>have found agencies to be in violation of the Act. The Act also created the Privacy Protection Study Commission (PPSC). (6) Section 1202 of the Tax Reform Act of 1976 (P.L. 90-055, 26 U.S.C. 6103) significantly revised the confidentiality provisions of the Internal Revenue Code, and specifically provided. that tax returns and return information are confidential and, with few exceptions, not subject to disclosure to Federal or State agencies or employees. Civil remedies are available to any taxpayer harmed by unauthorized disclosure, which is reclassed as a felony offense. 2 Section 1205(a) of that Act (26 U.S.C. 7609) requires the IRS to notify any person who is specifically identified in a summons to produce records. In most cases, the individual then has the right to intervene in subsequent legal proceedings relating to the summons, and the right to stay compliance CRS- 3 IB7£123 UPDATE-08/28/80 with the summons. (7) The Right to Financial Privacy Act of 1978, Title XI of the Financial Institutions Regulatory and Interest Rate Control Act of 1978 (P.L. 95-630, 92 Stat. 35u1) limits access to bank records by Federal authorities without due process of law. Financial institutionssare restricted from providing any Government authority with access to or copies of the financial records of any customer unless the Government has notified the customer of its intent to see the records, and the customer has had a chance to challenge the Government's action. The customer may challenge the action on the grounds that the records are not relevant to the legitimate law enforcement inquiry. Under certain circumstances, and with court approval, the Government may be authorized to delay notice to the customer for 90 days after gaining access to the -information. special procedures are provided for grand jury information, information required by Government authorities in conducting foreign intelligence activities, and the Secret Service in conducting its protective functions. Implementation of the Privacy Act The Office of Management and Budget has oversight responsibilities under the 1974 Privacy Act. It issues guidelines.for agency implementation of the Act, compiles data, and publishes annual reports of executive branch activity under the Privacy Act. These reports have indicated that the public dincreasingly is using the Act to gain access to personal records and to amend them, and that agencies are reducing the amount of such data they collect and maintain. During 1978, the last year for which data are available, the number of systems of records and the number of individual files was reduced pproximately 9% from 1977- This represents an overall reduction of almost 13% of the systems of records maintained at.the time the Privacy Act became effective. An important finding has been that there were over 6,000 systems of records, 65% of which are maintained- for Government administrative purposes; these systems contained over four billion individual records. The Annual Reports have highlighted some of the problems in implementing the Privacy Act, and commentators both inside and outside Government have added others. On the whole, the Privacy Act has been seen as an important step forward in privacy protection, but it has not produced the benefits to the public that were anticipated. Most of the persons requesting access to records were Federal employees; critics have argued that these are the only people who know about the Federal Register, in which Privacy Act notices are published. A more serious problem seen by many persons is the disclosure limitation exemption, "routine use" (5 0.5.0. 552a(b)(3)): under which agencies may disclose information for a purpose compatible with the purpose for which it was collected. OMB and the PPSC have reported that agencies have interpreted the "compatible" language broadly, to establish an easier flow of information than was originally intended. Privacy Protection Study Commission The Privacy Protection Study Commission (PPSC), created by the Privacy Act, was established to study various aspects of privacy concerns in both the r ivate and public sectors. The Commission reported to the President.and to Congress on July 12, 1977, with 162 specific recommendations to protect the privacy of individuals in CRS= 1% IB7-‘$123 UPDAT“-G8/23/80 their record-keeping relationships with a variety of institutions. The Commission determined that the principles behind the Privacy Act should be ’ extended to the private sector, but that many specific requirements of that legislation should not be extended outside the Federal Government. The Commission recommended the creation of a legally enforceable ‘expectation of confidentiality’ with respect to records that many institutions maintain about individuals. Those individuals would be able to sue a violator of that privacy expectation for damages and penalties up to $10,000. The Commission also recommended the creation of a privacy ‘entity,’ of as yet unspecified structure, to be located somewhere in the Federal 0 Government. One role of this body would be as an additional channel through which individuals could learn about and enforce their privacy rights. The Commission outlined three basic objectives for any effective privacy protection policy: minimization of intrusiveness; maximization of fairness; and creation of legitimate and enforceable expectations of confidentiality. The vast majority of the recommendations deal directly or indirectly with the fairness objective. Commercial credit and consumer investigative reports would be subject to the same type of record access provisions as are now in effect for consumer credit by virtue of the Fair Credit Reporting Act. Consumer credit laws would be tightened to clearly define obligations with respect to uses and disclosures of records. Most depository institutions would also be made subject to the Fair Credit Reporting Act, and Electronic Funds Transfer (EFT) systems would be subject to special requirements for information destruction. Ho Federal agency, such as the Federal Reserve System, would be allowed to own, operate, or manage any part of an electronic payments system whose transactions involve private parties. Educational institutions, already regulated in the privacy area by the Family Educational Rights and Privacy Act of 1974, would have to adopt an affirmative policy to implement privacy requirements. The scope of the present law would be enlarged to include any education testing organizations, and to include both successful and unsuccessful applicants for student status. The Commission recommended that voluntary compliance with fair information principles be encouraged in respect to employment and personnel records, but that employers would be prohibited from using polygraph or other truth-verification devices to gather information from an employee or applicant. Individuals would have greater protection from Government information-seeking, by requiring an administrative summons which specifically identified the information sought. Data obtained through normal reporting and licensing procedures could not be used for prosecution, unless the particular reporting requirement was created to discover violations. Insurance companies would be restricted in the kinds of information that could be collected and used about their clients and those who are refused insurance. "Pretext“ interviews would be outlawed, and some governmental mechanism should be created to help people challenge the relevance of data kept in company files. The Commission alsc>recommended restrictions on third party use of information, and proposed that all waivers be dated, concise, and specific. Medical records should be made more confidential than they generally are now, and the ystates and the Congress should enact fair information standards for the health services under each's jurisdiction. The Commission also recommended State action in the areas of public assistance and social services; these laws should allow the individual a right of access to agency records, along with a right of correction, amendment, or deletion, and a right to have the nature of the social service benefit kept confidential when the agency contacts third parties. CRS— 5 IB74123 UPDATE-O8/28/80 other recommendations include allowing Government access to some information if it is to be used only for research and statistical purposes: most other access would require authorization by the individuals involved. The mailing list industry would not be regulated, but it would be encouraged to continue its voluntary name removal program, and States should review the marketing and solicitation uses made from State agency records. Current restrictions on the use of the Social Security number should be retained, and the development of any other universal identifier should be delayed until all the recommended standards for use and disclosure of records have been implemented and proven effective. Tax return information should be more restricted in its distribution, and the nonetax uses to which it is put should be sharply curtailed. In the area of financial records held by depository institutions, the 95th Congress enacted the Privacy Commission's proposals after adopting modifications proposed by the Carter Administration. During hearings on financial privacy in May 1978, then-Deputy Attorney General Benjamin Civiletti presented the compromise plan of the Departments of Justice and Treasury on the issue of law enforcement access to financial records. While this proposal marked the first time that the Justice Department endorsed legislation that would require judicial process, including customer pre—notice before investigators could see the individual's bank records, the proposal did not incorporate all the customer safeguards recommended by the Commission nor was it included in several financial privacy bills before the Congress. The Right to Financial Privacy Act of 1978, Title‘ XI of the Financial Institutions Regulatory and Interest Rate Control Act of 1978 (P.L. 95-630; Nov. 10, 1978), incorporates parts of the legislation proposed by the Departments of Justice and Treasury; notably the creation of a new process, he "formal written request," which may be used by agencies that do not have administrative summons authority to gain access to information. This new process is expected to take the place of informal requests that are now used by Federal authorities. While it would provide a record of Government access to records, it does not have the enforcement power that an administrative summons or subpoena has. Civil penalties, in the form of actual and punitive damages, and injunctive relief are available) to the customer if the Government or a financial institution is found to be in violation of the Act. The legislation included a provision which would have required depository institutions to notify all customers of their rights under the Act. After New York's Citibank estimated that compliance with this requirement would cost banks over $900 million, largely due to the cost of locating holders of dormant accounts, the Congress acted quickly to repeal the notification section. President Carter signed that repeal (P.L. 96-3) into law on Mar. 7, 1979. The recommendations of the Privacy Commission aroused much executive branch interest in the protection of personal privacy. The President's Task Force on Privacy and Information studied the issues, encouraged departmental and agency action in the field, and coordinated a Presidential privacy program. Several proposals from this program have been introduced in the 96th Congress: the Privacy of Medical Information Act (H.R. 3uuu and S. 865); the Privacy of Research Records Act (H.R. 3uo9 and S. 867); the First Amendment Privacy Protection Act (H.R. 3486 and S. 855); the Fair Financial T formation Practices Act (H.R. 5559 and S. 1928); and the Privacy of L ectronic Fund Transfers Act of 1979 (H.R. 5560 and S. 1929). In addition, the President announced support for pending legislation to restrict the use of polygraph testing for employment, and urged private sector employers to CRS~ 6 IB7fl123 UPDATE-G8/28/80 adopt voluntary programs to protect the privacy of their employees. The Department of Labor opened hearings in January to determine the extent to which businesses are complying voluntarily with recommendations of the Privacy Commission. These hearings, which continued int Washington and selected cities around the Nation through the winter and spring of 1980, have been scheduled as part of the President's privacy initiative. The purpose of the hearings is to publicize executive branch interest in employee privacy protections and to determine whether a Federal law is needed to insure that employees gain access and correction rights to their employment files. The report and recommendations of the Ccnmission have also had an effect on private industry. Some large companies have altered their policies relating to records maintained about their employees and/or their customers; in some cases, these changes are seen as attempts to stave off legislation that might regulate the information practices of an entire industry. The Aetna Life and Casualty Company, one of the Nation's largest insurers, implemented privacy protection policies for their employees and their insurees. Since the company's president, William O. Bailey, was a member of the Privacy Commission, it is anticipated that the .action of Aetna in voluntarily adopting fair information practice principles will encourate the rest of the insurance industry to adopt similar procedures. Both the Republican and Democratic Natitnal Platforms for 1980 address the issue of privacy protection. The Republican Platform, adopted in July, notes the need to protect individuals from misuse» or unauthorized disclosure of personal information collected by Government.. The Platform further commits the party to seek protection of individuals‘ right to privacy at the State level. The Democratic Platform, adopted in August, affirms thecarter Administration program to protect privacy. The Democratic Platform calls for the passage of legislation already pending to protect financial, insurance, medical and research records. Finally, the Platform calls for the passage of legislation to protect the privacy of private sector employees with regard to such areas as polygraph testing by employers and workers’ right to review medical and employment records maintined by employers. LEE I§l.-A219! many bills pending in the 96th Congress, if enacted, could have an impact on personal privacy. Following are examples of legislation that would substantially affect privacy, either by protecting information, or by dispersing it more widely than currently allowed. P.L. 96-3, 5. 37 Repeals Section 110fl(d) of the Right to Financial Privacy Act of 1978. Introduced Jan. 15, 1979; referred to Committee on Banking, Housing, and Urban Affairs. Reported out of committee (S.Rept. 96-5) and passed by Senate Feb. 9, 1979. House Banking, Finance, and Urban Affairs Committee favorably reported bill on Feb. 21, 19; passed House Feb. 27, 1979. Signed into law (P.L. 96-3) Bar. 7, 1979. P.L. 96-153, H.B. 3875 Housing and Community Development Act of 1979. Amends the Housing Act to require the Secretary of Housing and Urban Development to establish procedures to verify income data submitted by potential recipients of Federal assistance. Passed House, amended, June 7, 1979. Passed Senate, amended, July 13, 1979. Conference report agreed to-by Senate Dec. 18, 1979; by House CBs— 7 IB7fl123 UPDATE-08/28/80 Dec. 19, 1979. Signed into law (P.L. 96-153) Dec. 21, 1979. H.R. 191 (Chappell) Authorizes the Attorney General to exchange criminal record information vith certain state and local agencies. Introduced Jan. 15, 1979; referred to Committee on Banking, Finance, and Urban Affairs. - H.R . 346 (G oldu ater) Amends the Fair Credit Reporting Act, dealing with insurance institutions and privacy. Introduced Jan. 15, 1979; referred to Committee on Banking, Finance, and Urban Affairs. H.R . 3117 (G oldw ater) Amends the Family Educational Rights and Privacy Act by providing for the protection of privacy of personal information. Introduced Jan. 15, 1979; referred to Committee on Education and Labor. H.R . 350 (G oldv ater) Establishes a Federal Information Practices Board to review and report on fair information and privacy practices of governmental and non-governmental entities. Introduced Jan. 15, 1979; referred to Committee on Government Operations. H.R . 377 (Guyer) Amends the Communications Act of 193a, to prohibit making unsolicited commercial telephone calls to persons who have indicated that they do not wish to receive such calls. Introduced Jan. 15, 1979; referred to Committee on Interstate and Foreign Commerce. H.R. 1777 (Cavanaugh et al.) would have required financial institutions to notify only their active customers regarding the rights of such customers under the Right to Financial Privacy Act of 1978. Introduced Feb. 1, 1979; referred to Committee on Banking, Finance, and Urban Affairs (see P.L. 96-3). H.R. 2349 (McKinney): H.R. 3255 (McKinney) Protects the privacy of individuals by prohibiting the use of polygraph equipment for certain purposes. Introduced Feb. 22, 1979; referred jointly to Committees on Education and Labor, the Judiciary, and Post Office and Civil Service. fl.R. 2u65 (Preyer and Goldwater) Omnibus Right to Privacy Act of 1979. Implements many recommendations of the Privacy Protection Study Commission in the following areas: creation» of a Federal Information Practices Board; revision of the Privacy Act of 197a and the Family Educational Rights and Privacy Act; limitation of government "cess to information held by third parties; confidentiality of social r,rvice, medical and income tax records; and amendment of the Fair Credit Reporting Act. Introduced Feb. 27, 1979; referred jointly to several committees. CRS= 8 IB74123 UPDBTE=0 /28/80 H.R. 2979 (Preyer)v Federal Privacy of Medical Records Act. Provides for the confidentiality of individually identifiable medical records. Introduced Mar. 14, 1979; referred to Committees on Interstate and Foreign Commerce and Ways and Heans. Government Operations Subcommittee on Government Information and Individual Rights held hearings Apr. 2, 4, 9, 11, 1979 (see H.R. 5935). H.R. 3409 (Preyer)/S. 867 (Ribicoff et.al.) Privacy of I Research Records Act. Incorporates Administration recommendations to protect the privacy of those individuals whose records are used in federally funded or supported research. Researcher recontact of the participating individuals would be restricted, and criminal fines would be established for unauthorized disclosure of protected information. Introduced in House Apr. 3, 1979; referred to Committee on Government Operations. In Senate, introduced Apr. 4, 1979; referred to Committee on Governmental Affairs. The proposals have received several days of hearings in the House and two days in the Senate. 8 H.R. 3444 (Preyer and Goldwater)/S. 865 (Ribicoff and Javits) Privacy of Medical Information Act. Incorporates Administration recommendations to give individuals the right to see their own medical records, to participate in decisions concerning disclosure of those medical records, and to ensure that such records are accurate. In House, introduced Apr. 4, 1979; referred jointly to Committees on Government Operations, Interstate and Foreign Commerce, and Ways and Means. In Senate, introduced Apr. 4, 1979; referred jointly to Committees on Governmental Affairs and Judiciary. . H.R. 3486 (Kastenmeier et al.)/S. 855 (Bayh) First Amendment Privacy Protection Act. Incorporates Administration recommendations to restrict police searches for documentary materials held by the press and by others involved in the dissemination of information to the public. It would generally prohibit the search for “work product" -- that is, note or interview files or films. H.R. 3486 introduced in House Apr. 5, 1979; referred to Committee on the Judiciary. Hearings held Apr. 25, May 24, 25, 31, June 1, 1979. Reported Apr. 17, 1980. As reported, H.R. 3486 would protect news organizations and private individuals from surprise searches by Federal law officers, but would protect only news organizations from searches by State and local law officials. S. 855 introduced Apr. 2, 1979; referred to Committee on the Judiciary. The Committee considered 5. 855 and other proposals together, and redrafted them into S. 1790, which was approved by the Committee in June and by the full Senate in August. H.R. 4155 (Simon) Disclosure of mailing addresses of individuals% who have defaulted on certain student loans. Amends the Interna1.Revenue Code to allow disclosure of addresses of persons who defaulted on loans made under the Migration and Refugee Assistance Act of 1962 or under the Guaranteed Student Loan Program. The addresses would be disclosed only for the purpose of locating the taxpayer to collect the loan. Introduced nay 21, 1979; referred to Committee on ways and Means. Hearings held Mar. 24, 1980; reported favorably May 21, 1980 (H.Rept. 96-1044); passed House June 17, 1980. I H.R. 5288 (Hefner) I Veterans Rehabilitation and Education Amendments of 1979. Title IV CRS- 9 IB7fl123 UPDATE—O8/28/80 would allow the Veterans Administration to release information to a consumer credit agency concerning veterans benefits debts. would remove such disclosure from the coverage of the Privacy Act of 197A, but impose other conditions on disclosure. Introduced Sept. 1%, 1979; referred to Committee on Veterans Affairs. Reported favorably Oct. 4, 1979 (H.R. 96-H98); passed House Oct. 16, 1979; passed Senate, amended, Jan. 2H, 1980. H.R. 5559 (Cavanaugh et al.) Privacy Protection Amendments of 1979. Developed by the Department of Commerce and the White House to protect consumer information held by credit, insurance, and banking institutions. Introduced Oct. 12, 1979; referred jointly to Committees on Banking, Finance and Urban Affairs and Interstate and Foreign Commerce. H.R. 5560 (Cavanaugh et al.) Privacy of Electronic Fund Transfers Act of 1979. Developed by the Department of Commerce and the White House to protect consumer information transmitted in electronic funds transfer systems. Introduced Oct. 12, 1979; referred jointly to Committees on Banking, Finance and Urban Affairs and the Judiciary. H.R. 5582 (Preyer) Fair Insurance Information Practices Act. Includes a section assuring compatibility with the provisions of the Privacy Act. of 1197a and the Administration's suggested bill on fair’ information practices in the insurance industry. Introduced Oct. 12, 1979; referred jointly to Committees ;n Banking, Finance and Urban Affairs and Interstate and Foreign Commerce. H.R. 5646 (Preyer) Fair Insurance Information Practice Act. The bill is a variation of the Carter Administration proposal for protecting insurance records. Includes a section which would coordinate these proposals with requirements of the Privacy Act of 197a. Introduced Oct. 18, 1979; referred jointly to Committees on Government Operations and on Interstate and Foreign Commerce. Government Operations Subcommittee on Government Information and Individual Rights held hearings Nov. 27, 1979, Mar. 3 and 6, May 1 and 22, 1980. H.R. 5935 (Preyer et al.) Federal Privacy of Medical Information Act. Follows the outline of H.R. 2979, and adds elements both from legislation proposed by the Administration and that introduced in the Senate. Representative Preyer attributed many of the changes from H.R. 2979 to comments and testimony received by the I Subcommittee on Government Information and Individual Rights. V Introduced Nov. 16, 1979; referred jointly to Committees on Government Operations, Interstate and Foreign Commerce, and Ways and Means. Reported by Committee on Government Operations (H.Rept. 96-832, Part 1) Mar. 19, 1980. Subcommittee on Health and the Environment of House Interstate and Foreign Commerce Committee met to consider and markup the legislation June 11 and 17, 1980. Reported by Committee on Interstate and Foreign Commerce (H.Rept. ‘-832, Part 2) July 25, 1980. Subcommittee on Health of House Ways and neans Committee held hearings Apr. 17, 1980. Ordered reported by Committee on Ways and means Aug. 26, 1980. CRS-10 IB7&123 UPDATE-08/28/80 H.R. 6034 (Edwards et al.) Prohibits the use of polygraphs in private sector employment. Similar to 1 H.R. 2349, but would not restrict the use of polygraphs in the intelligence community or any Federal, State or municipal agency. Introduced Dec. 5, 1979; referred jointly to Committees on‘ the Judiciary and Education and Labor. H.R. 7836 (Preyer et al.) Provides that the Securities and Exchange Commission (srcy shall be subject to the Right to Financial Privacy Act of 1978, except as provided in the Securities Exchange Act of 1938. The SEC received a 2-year exemption from the terms of the Right to Financial Privacy Act of 1978; this exemption is due to expire in November 1980. Subjects the SEC to most of the provisions of that Act, but would allow the SEC to delay in giving notice to the customer of a subpoena for records in several specified situations. Introduced July 25, 1980; referred jointly to Committees on Banking, Finance, and Urban Affairs, and on Interstate and Foreign Commerce. 3. 115 (uathias) Third Party Privacy Act of 1979. would establish procedures restricting ‘searches of all non-suspects by federal, state and local officials. Seeks to overcome the effect of the gggghgg v. §tanfg;g_ Qgily case, in which the Supreme Court allowed a search of a newspaper office, although no one connected with the office was suspected of criminal activity. Introduced Jan. 23, 1979; referred to Committee on the Judiciary (see also 5. 855). S. 503 (Javits) Privacy Act Amendments of 1979. Protects the confidentiality of medical records maintained by hospitals, skilled nusing facilities, and intermediate care and ambulatory care facilities receiving Medicare or nedicaid funds. In most cases, would also give patients the right to inspect and copy their own records, and to restrict disclosure of the records without specific written authorization. Introduced Mar. 1, 1979; referred to Committees on Governmental Affairs and on the Judiciary. The Governmental Affairs Committee held 3 days of hearings in 1979, and ordered the bill reported July 22, 1980. [Similar bill: H.R. 5935] S. 1112 (Leahy)/H-R. 3695 (Wilson, Charles, of Texas) Applies certain laws to the Congress, including the Privacy Act. Introduced in Senate nay 10, 1979; referred to Committee on Governmental Affairs. Introduced in House Apr. 2a, 1979; referred jointly to Committees on Education and Labor, Government Operations, and Ways and Means. Hearings held by Subcommittee on Oversight Sept. 20, 1979. S- 1612 (Kennedy)/H.R. 5030 (Rodino) Federal Bureau of Investigation Charter Act of 1979. Establishes a charter of rights and responsibilities of the Federal Bureau of Investigation. -While the legislation mandates few protections for individual privacy, the Attorney General could be required to incorporate protections of constitutional rights, including privacy, in implementing, guidelines. Introduced July 31, 1979; referred to House and Senate Committees on the Judiciary. Hearings held through fall 1979. cns-11 1374123 UPDATE-O8/28/80 S. 1790 (Bayh et al.) Privacy Protection Act of 1980. Protects newspersons from search and seizure of documentary evidence and requires the Attorney General to issue guidelines outlining Federal procedures to be used when evidence is in the possession of non-journalists who are not suspected of committing a crime. The bill is a response to the 1978 gggghgg v. §tag§Qg§_Qaily case, in which the Supreme Court allowed police to use a search warrant to conduct a surprise search of the offices of a newspaper, and seize notes and film coverage of a demonstration at which several persons were arrested. Introduced as a substitute for other proposals in this area Sept. 21, 1979; referred to the Committee on the Judiciary, which held several days of hearings on the issue both before and after the introduction of this bill; approved by the Committee in June; reported favorably with amendment July 28, 1980 (S.Rept. 96—87u); passed by the Senate by voice vote Aug. 4, 1980. [Similar bill: H.R. 3u86] S. 1928 (Proxmire) Pair Financial Information Practices Act. Part of President Carter's privacy initiative to provide safeguards for consumers in the areas of credit, banking and insurance. Introduced on Oct. 23, 1979; referred to Committee on Banking, Housing and Urban Affairs. Hearings held Jan.-Hay, 1980. S. 1929 (Proxmire) Privacy of Electronic Fund Transfers Act. Also part of the President's privacy initiative to develop a framework for the protection of electronic fund transfers. Introduced on Oct. 23, 1979; referred jointly to Committees >n Banking, Housing and Urban Affairs, and on the Judiciary.‘ S. 2fl02 (Nunn et al.) Amends the Internal Revenue Code to provide for the disclosure of tax returns or nonreturn information for certain Government purposes. Introduced Mar. 11, 1980; referred to Committee on Finance. S. 2403 (Nunn et al.) Amends the Internal Revenue Code with respect to the rights of individuals relating to summons for information held by third party recordkeepers. Introduced Mar. 11, 1980; referred to Committee on Finance. §§é§l!§§ 0.5. Congress. House. Committee on Banking, Currency and Housing. Subcommittee on Financial Institutions, Supervision, Regulation and Insurance. Bank failures, regulatory reform, and financial privacy. Hearings, 94th Congress, 1st session, on H.R. aozu. 2 v. Washington, 0.5. Govt. Print. Off., 1975. 1238 p. Hearings held Jan- 26, July 1a-17, and 21, 1975. 0.5. Congress. House. Committee on Government Operations. Subcommittee on Government Information and Individual Rights. Right to privacy proposals of the Privacy Protection Study Commission. Hearings, 95th Congress, 2d session, on H.R. 10076. Washington, 0.5. Govt. Print. Off., 1978. 576 p. ---- Privacy of medical records. --- %Right to Financial Privacy Act. CBS=12 IB74123 UPDA E“O8/28/80 Hearings held on Hay 23 and 24, 1978. Hearings, 96th Congress, 1st session, on H.R. 2979 and H.R. 3444. Washington, U.S. Govt. Print. Off., [1980] 1238 p. Hearings held on Apr. 4, 9, 11; June 14; July 9, 14; and Sept. 17, 1979. Congress. House. Committee on Government Operations. Subcommittee on Foreign Operations and Government Information. Access to records. Hearings, 93d Cbngress, 2d session on H.R. 12206 and related bills. Washington, U.S. Govt. Print. Off., 1974. 338 p. Hearings held Feb. 19, 26; Apr. 30; May 16, 1974. subcommittee Hearings, House. Committee on Ways and Means. Federal Privacy of Medical Information Act. Apr. 17, 1980. 110 p. Congress. on Health. 96th Congress, 2d session, on H.R. 5935. Washington, U.S. Govt. Print. Off., 1980. Congress. House.. Committee on Ways and Means. Subcommittee on Select Revenue neasures. minor tax bills. Hearings, 96th Congress, 2d session, on H.R. 4155 and other bills. Mar. 24, Washington, U.S. Govt. Print. Off., 1980. 72 p. 1980. Senate. Committee on Banking, Housing and Urban Affairs. Subcommittee on Consumer Affairs. Fair Credit Reporting Amendments of 1975. Hearings, 94th Congress, 1st session, on S. 1840. Washington, U.S. Govt. Print. Off., 1975. 937 p. ‘ 1 ‘ ~ Hearing held Oct. 22, 23, 29, and Nov. 18, 1975. Congress. Congress. senate. Committee on Banking, Housing, and Urban Affairs. Subcommittee on Consumer Credit. Fair Credit Reporting Act of 1973. Hearings, 93d Congress, 1st session, on S. 2360. [Washington, U.S- Govt. Print. Off., 1973] 993 p. Congress. Senate. Committee on Banking, Housing, and Urban Affairs. Subcommittee on Financial Institutions. Electronic funds transfer and financial privacy. Hearings, 95th Congress, 2d session, on S. 2096, S. 2293 and S. 1460. Washington, U.S. Govt. Print. Off., 1978. 644 p. ‘ Hearings held Apr. 18 and 20; and May 17, 1978. Hearings, 94th Congress, 2d June 16 and 17, 1976. Washington, U.S. Govt. 261 p. session, on S. 1343. Print. Off., 1976. Subcommittee on Federal tax return Apr. 21, 1975. Congress. Senate. Committee on Finance. Administration of the Internal Revenue Code. privacy. Hearings, 94th Congress, 1st session. Washington, U.S. Govt. Print. Off., 1975. 308 p. Congress. Senate. Committee on Government Operations and Committee on the Judiciary. Ad Hocrsubcommittee on Privacy and Information Systems and the Subcommittee on Constitutional Rights. Privacy: The collection, use, and computerization of personal data. Joint hearings, 93d Congress, 2d session, on S. 3418, cns-13 IB7u123 0PDATE—08/28/80 S. 3633, S. 3116, S. 2810, and S. 2502. 2 v. June 18-20, 1970. Washington, 0.3. Govt. Print. Off., 1974. 2335 p. 0.3. Congress. Senate. Committee on Governmental Affairs. Legislation to protect the privacy of medical records. Hearings, 96th Congress, 1st session, on S. 503 and S. 865. Washington, 0.5. Govt. Print. Off. [1980] 685 p. Hearings held June 27, Aug. 3, and Nov. 13, 1979. 0.3. Congress. Senate. Committee on Governmental Affairs/ and House. Committee on Government Operations. Subcommittee on Government Information and Individual Rights. Final report of the Privacy Protection Study Commission. Joint hearing, 95th Congress, 1st session. July 12, 1977. Washington, 0.5. Govt. Print. Off., 1977. 40 p. ---- Federal data banks, computers, and the Bill of Rights. Hearings, 92d Congress, 1st session on S. 969, S. 975, S. 1550, S. 2546. Washington, 0.S. Govt. Print. Off., 1971. 2164 p. Hearings held Feb. 23-25, Mar- 2, 3, H, 9, 11, 15 [and] 17, 1971. . 0.S. Congress. Senate. Committee on the Judiciary. Privacy Protection Act. Hearing, 96th Congress, 2d session, on S. 115, S. 1790, and S. 1816. »Har. 28, 1980. Washington, 0.3. Govt. Print. Off., 1980. 233 p. ‘ E.20R'.P.§._AE.12-QQ!§B§55lQ!AL D0§Q!§.1!$§ Goldwater, Barry H., Jr. ' Congressional commitment to privacy. Remarks in the House. Congressional record [daily ed.] vol. 120, Apr. 2, 1970: H2038-H2095. 0.5. Congress. House. Committee on Banking, Finance and Urban Affairs. Financial Institutions Regulatory Act of 1978; Report together with supplemental, additional and minority views, to accompany H.R. 13071, 95th Congress, 2d session. Washington, 0.3. Govt. Print. Off., 1978. 250 p. (95th Congress, 2d session. House. Report no. 95-1183) 0.5. Congress. House. Committee on Government Operations. A citizen's guide on how to use the Freedom of Information Act and the Privacy Act in requesting Government documents. Washington, 0.5. Govt. Print. Off., 1977. 59 p. (95th Congress. House. Report no. 95-793) 0.5. Congress. Joint Connittee on Printing. Resolved: That sore stringent control should be imposed upon Government agencies gathering inforzation about United States citizens. Washington, 0.5. Govt. Print. Off., 1971. 265 p. ’ At head of title: 92d Congress, 1st session. Committee Print. Serial no. 92-167. A collection of excerpts and bibliography relating to the intercollegiate debate topic, 1971-72, prepared by the Congressional Research Service, Library of Congress. CR5-14 IB7fi123 EPDETE-08/28/30 U.S. Congress. Senate. Committee on Government Operations. Protecting individual privacy in Federal gathering, use and disclosure of information; report to accompany S. 3418, 93d Congress, 2d session. Washington, 0.5. Govt. Print. Off.,' 1974. 85 p. (93d Congress, 2d session. Senate. Report no. 93-1183) 3.3. Congress. Senate. Committee on Government Operations [and] House. Committee on Government Operations. Subcommittee on Government Information and Individual Rights. Legislative history of the Privacy Act of 1974. S. 3418 (P.L. 93-579): Source book on privacy. Washington, U.S. Govt. Print. Off., 1976. At head of title: 94th Congress, 2d session. Joint Committee Print. 0.5. Congress. Senate. Committee on the Judiciary. Protecting ‘privacy and the rights of Federal employees; report to_accompany S. 1688, 93d Congress, 1st session. Washington, U.S. Govt. Print. Off., 1974. 48 p. (93d Congress, 1st session. Senate. Report no. 93-724) " 3.5. Congress. Senate. Committee on the Judiciary. Subcommittee on Constitutional Rights. Federal data banks and constitutional rights. A study of data systems on individuals maintained by agencies of the United States Government. Part III of the Subcommittee's study of Federal data banks, computers and the Bill of Rights. v. 1-6, 93d Congress, 2d session.- Washington, 0.5. Govt. Print. off., 1974. 3527 p. ---- Summary of Federal data banks on constitutional Rights. 93d Congress, 2d session. Washington, U.S. Govt. Print. Off., 1974. 53 p. At head of title: 93d Congress, 2d session. Committee print. I §§§QEQL0GY_0F EVEE$§ O8/O4/80 —- Senate passed 5. 1790, protecting newspersons and others . from surprise searches and seizures of documentary evidence when the person searched is not suspected of committing a crime. O5/29/80 -- The General Accounting Office reported that Federal agencies have experienced relatively few problems in implementing the Right to Financial Privacy Act of 1978. The major problem identified was that the Justice Department had incorrectly interpreted the law to allow supervisory agencies to transfer records without notifying the customer. Other problems included complaints from some law enforcement agencies that the provisions caused financial institutions to refuse to give sufficient data on criminal suspects, and complaints that some financial institutions were not honoring the non-coercive means of obtaining information, the formal written request. The GAO determined that it was too early to decide if these and other problems should be corrected by legislation, or should be worked out gradually as the agencies and 05/00/80 on/17/so -_ 03/19/80 03/00/80 01/00/30 01/07/80 12/10/79 10/02/79 08/00/79 07/00/79 -- CBS-15 IB7fl123 UPDATE-08/28/80 the financial institutions gain experience under the Act. House Government Information and Individual Rights Subcommittee held hearings on H.R. 5646, the Fair Insurance Information Practices Act. House Judiciary Committee ordered reported H.R. 3fl86, the First Amendment Privacy Act. House Government Operations Committee reported H.R. 5935, the Federal Privacy of Medical Records Act (H.Rept. 96-832). House Government Information and Individual Rights Subcommittee held hearings cm H.R. 5646, the Fair Insurance Information Practices Act. - 04/00/80 -— Senate Banking Committee's Subcommittee on Consumer Affairs held hearings on S. 1928, the Fair Financial Information Practices Act. The Department of Labor began a series of hearings on workplace privacy in the private sector. The hearings are designed to develop information that will help private sector employees in adequately protecting the privacy of data collected and'used in an employment context. David F. Linowes, former head of the Privacy Protection Study Commission, released the results of a survey of bank disclosure policies. Nearly all banks reported that they require a subpoena for governmental requests for access, but fewer than half require any form of legal process for requests from non-governmental organizations. The Carter Administration presented two financial privacy proposals. These would protect consumer records held by such institutions as credit and check authorization services, insurance institutions, and electronic fund transfer systems. The Office of Management and Budget issued the Fourth Annual Report.on Executive Branch compliance with the Privacy Act. OMB noted that although there is growing evidence that the provisions of the Act work to restrict the kinds and amounts of information available to Federal agencies, these restrictions have not hampered agencies in collecting information necessary to carry out Federal programs. Essential information remains accessible for Federal investigations, although agencies have been required to provide greater documentation in order to obtain the necessary data. OMB also reported that during 1978 the total number of systems of records had decreased almost 10% and the number of individuals seeking access to their reccmds had increased approximately 7%. A University of Illinois Survey Research Laboratory survey indicates that few Fortune 500 corporations have taken 05/O0/79 - 04/02/79 - 10/1u/78 - 09/21/78 “ 05/O0/78 - CBS-16 IB7fl123 UPDATE-O“/28/80 steps to comply with the employee-related recommendations of the Privacy Protection Study Commission. David Linomes, Chairman of the Privacy Commission, announced some results of the study: roughly 50% of the respondents use investigatory firms to collect and verify information on personnel; almost 50% do not have a policy governing routine disclosure of records to government agencies; and over two-thirds do not notify employees of the types of records maintained, and the use made of the information contained in those records. R Louis Harris Associates released the results of an extensive nationwide poll on concern about threats to individual privacy. The new poll, conducted for Sentry Insurance, found that national concern about privacy had substantially increased over the past year: two-thirds of the respondents replied that they were "very" or "somewhat" concerned about such threats, whereas only 47% felt that way in a similar poll taken the previous year. The President announced his privacy protection ‘program, which includes legislative proposals, administrative implementation and oversight of existing_laws, and advocacy of voluntary compliance with fair information practice principles by private sector employers and reporting services. Congress passed two privacy bills. The Right to Financial Privacy Act is Title XI of H.R. 1u279, the Financial Institutions Regulatory and Interestv Rate Control Act of 1978. Title XVIII of the Community Mental Health Centers Extension Act establishes the President's Commission for the Study of Ethical Problems in Medicine and Biomedical and Behavioral Research. This Commission is to study privacy issues relating to research subjects, especially in light of the recommendations of the Privacy Protection Study Commission regarding medical records and research subjects. The Constitutional Rights Subcommittee of the Senate Judiciary Committee held hearings on S. 1845, the Polygraph Control and Civil Liberties Protection Act. Witnesses included representatives of polygraph associations, management associations, private employers, and university professors. The Senate Banking Committee held hearings on may 17 on S. 2096, the Financial Privacy Act; the House Government Operations Committee held hearings on May 23 and 24 on H.R. 10076, the Omnibus Right to Privacy Act. At each of these hearings, Deputy Attorney General Civiletti discussed the Justice Department's proposals in the area of bank records. The House Committee on Banking, Finance and Urban 10/28/77 07/12/77 03/21/77 07/00/76 09/27/75 12/31/7n 03/21/74 O2/23/7“ 08/03/73 CBS=17 IB7Q123 U?DATE~O8/28/80 Affairs continued work on H.R. 9600, the Safe Banking Act, which includes restrictions on Government access to bank records. The National Commission on Electronic Funds Transfer concluded that present legal.safeguards for the privacy of financial.transaction information are not adequate to deal with threats to privacy that may arise with EFT. The Commission recommended that Federal legislation be enacted to provide the individual with a property interest in financial information upon which that person can sue if he or she feels that the institution maintaining the information has misused it. other recommendations would limit and define Government and third party access, with varying notice and consent provisions depending on whether data will be disclosed for primary or secondary uses. In addition, the Commission concluded that the Federal Reserve System was an appropriate entity to operate automated clearing houses at this time; this view differed from that of the Privacy Protection Study Commission, which considered.Federal Reserve involvement as a precedent for Government agencies to obtain and possibly misuse information about individuals in the future. The Privacy Protection Study Commission presented its final report, entitled "Personal Privacy in an Information Society," to the President and to Congress. A Harris poll reported that a 75% to 10% majority of Americans think it is important for the Government to enact legislation similar to the Privacy Act on Federal Government records, which wold lay down rules for the way business and other private organizations should deal with information they have collected about their customers, employees, and other individuals. OHB issued its first Annual Report on executive branch compliance with the Privacy Act, and noted the existence, as of Dec. 31, 1975, of 6,723 systems of records containing more than 3.8 billion individual files. The Privacy Act went into effect. President Ford signed into law the Privacy Act of 197a. President Nixon revoked a controversial Executive Order which permitted the Department of Agriculture to inspect tax returns of farmers. President Nixon warned of dagers of advanced technology and created a Domestic Council Committee on Privacy headed by Vice President Ford. Amendments enacted to the "Crime Control Act of 1973" which limit the use of criminal records and permit 22lIlQEéL-BEE-R CRS~18 IB7fl123 GPDATE-03/23/80 correction of erroneous data. 02/00/71 —- Former Army intelligence agents disclosed surveillance activities over civilians and the use of military computers to store personal dossiers. 10/O0/70 - Fair Credit Reporting Act enacted with provisions restricting the use of private files. O7/00/66 -- Freedom of Information Act enacted. Portions of it allegedly conflict with claims to individual privacy. 10/O0/65 -- Social Science Research Council recommended a National Data Center. 06/O0/65 - Use of psychological tests as a requirement for employment, especially Federal employment, became a well publicized issue as a result of hearings conducted by the Senate Subcommittee on Constitutional Rights. 06/00/65 - Qgiggglg v..g9gggg§;gg§ 381 U.S. 479 created a right to marital privacy and set in motion a new legal definition of the concept which would be applied to other situations in coming years. EE§§_§QQ§§§§ American Enterprise Institute for PublicrPolicy Research. iPrivacy protection proposals: 1979, 96th Congress, 1st session. Washington, American Enterprise Institute, March 1979. 93 p. Greenawalt, Kent. Legal protection of privacy; final report. Washington, Office of Telecommunications Policy. 0.5. Govt. Print.‘ Off., 1976. 76 p. Martin, James. Security, accuracy, and privacy in computer systems. Englewood Cliffs, N.J., Prentice-Hall Inc., 1973. 626 p. National Academy of Sciences. Computer Science and Engineering Board. Project on computer databanks in a free society: Computers, record-keeping and privacy; report. Alan F. Westin and Michael Baker, Project directors. New York, Quadrangle Books, 1972. 522 p. Bioux, J. William and Stuart A. Sandow. Children, parents, and school records. Columbia, Hd., National Committee for Citizens in Education, 197a. 313 p. Rule, James B. Private lives and public surveillance. London, ‘Allen Lane (a division of Penguin Books), 1973. 382 p. Shattuck, John H.F. Rights of privacy. Skokie, Ill., National Textbook Company, in conjunction with American Civil Liberties Union, 1977. 210 p. Smith, Robert Ellis. Privacy, how to protect what's left of it. CR5-19 IB7#123 0PDATE=08/28/80 Garden City, R.Y., Anchor Press/Doubleday, 1979. 346 p. % 0.5. Dept. of Commerce. National Bureau of Standards. Institute for ‘Computer Sciences and Technology. Computers, health records and 9 ; citizen rights. Report. Washingtrn, 0.5. Govt. Print. Off., 1977. ---- Computers, personnel administration, and citizen rights. Report. Washington, 0.5. Govt. Print. Off., 1979. 645 p. 0.5. Dept. of Health, Education 8 Welfare. secretary's Advisory Committee on Automated Personal Data Systems, Records, Computers, and the Right of Citizens. Report. Washington, 0.5. Govt. Print. Off., 1973. P306 p. 0.5. General Accounting Office. Federal agencies‘ initial problems with the Right to Financial Privacy Act of 1978. Report to the Congress by the Comptroller GeneraJ.of the United States. GGD-80-6a, May 29, 1980. Washington, 1980. 69 p. 0.5. Library of Congress. Congressional Research Service. Citizen control over records held by third parties [by] Sarah P. Collins. Dec. 8, 1978. [Washington] 1978. 98 p. CR5 Report 78-255 GOV. ---- Legislation related to the right of privacy: 96th Congress, first session [by] Sarah P. Collins» Apr. 1, 1980. 1a p. CR5 Report 80-50 GOV. ---- The Privacy Protection study Commission: background and recommendations [by] Sarah P. Collins. Oct. 31, 1979. [Washington] 1979. 87 p. plus appendix CR5 Report 79-236 0.5. National Commission on Electronic Fund Transfers. EFT in the United States: Policy recommendations and the public interest. Final report. Washington, 0.5. Govt. Print. Off., 1977. 389 p. 0.5. Office of Management and Budget. Federal personal data systems subject to the Privacy Act of 1970: Fourth annual report of the President. Washington, 0.5. Govt. Print. Off., 1979. 22 p., plus appendix. 0.5. Privacy Protection Study Commissixn. Personal privacy in an information society. Final report. Washington, 0.5. Govt. Print. Off., 1977. 654 p. Warren, Samuel D- and Louis D. Brandeis. The right to privacy. Harvard law review, v. 0, December 1890: 193-220. Westin, Alan P. Privacy and freedom. New York, Atheneum, 1970. #87 p. Privacy and personnel records: A look at employee attitudes. Civil liberties review, vol. 4, JanrFeb 1978: 28-30.