House Report 106-565 - FREEDOM TO E-FILE ACT

[House Report 106-565]
[From the U.S. Government Publishing Office]

106th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 106-565

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FREEDOM TO E-FILE ACT
_______

April 10, 2000.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed

_______

Mr. Combest, from the Committee on Agriculture, submitted the following

R E P O R T

[To accompany H.R. 852]

[Including cost estimate of the Congressional Budget Office]

The Committee on Agriculture, to whom was referred the bill
(H.R. 852) to require the Department of Agriculture to
establish an electronic filing and retrieval system to enable
the public to file all required paperwork electronically with
the Department and to have access to public information on farm
programs, quarterly trade, economic, and production reports,
and other similar information, having considered the same,
report favorably thereon with amendment and recommend that the
bill as amended do pass.
The amendments are 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 ``Freedom to E-File Act''.

SEC. 2. ELECTRONIC FILING AND RETRIEVAL.

(a) Establishment of Internet-Based System.--The Secretary of
Agriculture shall establish an electronic filing and retrieval system
that uses the telecommunications medium known as the Internet to enable
farmers and other persons--
(1) to file electronically all paperwork required by the
agencies of the Department of Agriculture specified in
subsection (b); and
(2) to have access electronically to information, readily
available to the public in published form, regarding farm
programs, quarterly trade, economic, and production reports,
price and supply information, and other similar information
related to production agriculture.
(b) Covered Agencies.--Subsection (a) shall apply to the following
agencies of the Department of Agriculture:
(1) The Farm Service Agency.
(2) The Risk Management Agency.
(3) The Natural Resources Conservation Service.
(4) The rural development components of the Department
included in the Secretary's service center initiative regarding
State and field office collocation implemented pursuant to
section 215 of the Department of Agriculture Reorganization Act
of 1994 (7 U.S.C. 6915).
(c) Time-Table for Implementation.--Not later than 180 days after the
date of the enactment of this Act, the Secretary shall--
(1) to the maximum extent practicable, complete the
establishment of the electronic filing and retrieval system
required by subsection (a) to the extent necessary to permit
the electronic information access required by paragraph (2) of
such subsection;
(2) initiate implementation of the electronic filing required
by paragraph (1) of such subsection by allowing farmers and
other persons to download forms from the Internet and submit
completed forms via facsimile, mail, or related means; and
(3) modify forms used by the agencies specified in subsection
(b) into a more user-friendly format, with self-help guidance
materials.
(d) Interoperability.--In carrying out this section, the Secretary
shall ensure that the agencies specified in subsection (b)--
(1) use computer hardware and software that is compatible
among the agencies and will operate in a common computing
environment; and
(2) develop common Internet user-interface locations and
applications to consolidate the agencies' news, information,
and program materials.
(e) Completion of Implementation.--Not later than two years after the
date of the enactment of this Act, the Secretary shall complete the
establishment of the electronic filing and retrieval system required by
subsection (a) to permit the electronic filing required by paragraph
(1) of such subsection.
(f) Progress Report.--Not later than 180 days after the date of the
enactment of this Act, the Secretary shall submit to Congress a report
describing the progress made toward establishing the electronic filing
and retrieval system required by subsection (a).

SEC. 3. AVAILABILITY OF AGENCY INFORMATION TECHNOLOGY FUNDS.

(a) Reservation of Funds.--From funds made available for each agency
of the Department of Agriculture specified in section 2(b) for
information technology or information resource management, the
Secretary of Agriculture shall reserve an amount equal to not more than
the following:
(1) For fiscal year 2001, $3,000,000.
(2) For each subsequent fiscal year, $2,000,000.
(b) Time for Reservation.--The Secretary shall notify Congress of the
amount to be reserved under subsection (a) for a fiscal year not later
than December 1 of that fiscal year.
(c) Use of Funds.--Funds reserved under subsection (a) shall be used
to establish the electronic filing and retrieval system required by
section 2(a). Once the system is established and operational, reserved
amounts shall be used for maintenance and improvement of the system.
(d) Return of Funds.--Funds reserved under subsection (a) and
unobligated at the end of the fiscal year shall be returned to the
agency from which the funds were reserved, and such funds shall remain
available until expended.

Amend the title so as to read:

A bill to require the Secretary of Agriculture to establish
an electronic filing and retrieval system to enable farmers and
other persons to file paperwork electronically with selected
agencies of the Department of Agriculture and to access public
information regarding the programs administered by these
agencies.

BRIEF EXPLANATION

H.R. 852 requires the Secretary of the U.S. Department of
Agriculture to establish an internet-based system to allow
farmers, ranchers, and other persons to complete and submit
program applications electronically, and to have electronic
access to all relevant economic and program information and
data.

PURPOSE AND NEED

The Freedom to E-File Act requires the United States
Department of Agriculture (USDA) to establish an electronic
filing and retrieval system to enable the public to file with
USDA all required paperwork electronically. In doing so, the
Act would allow producers, farmers and rural America to have
access to information on farm programs, quarterly trade,
economic and production reports and other similar information.
The purpose of the bill is to allow farmers to do business
with USDA over the Internet. The rapidly evolving e-commerce
economy of the 21st Century continues to assert itself as the
future of worldwide commerce. Like any business today, farmers
are using computers and the Internet for a variety of purposes,
including financial management systems and market information.
It is becoming increasingly important to ensure that all
segments of our economy are technologically efficient.
Currently, USDA operates several separate, and in some
cases antiquated, computer systems. The continued use of such
ad hoc, uncoordinated systems threatens to disable producers
and farmers from access to a maturing information technology
market. Rural Americans face the very real potential of being
left behind in this era of sweeping technological advances. It
is vital to empower producers and farmers by providing them
with the technological tools to do business via the Internet
with USDA. The continued absence of a viable common computing
environment at the Department will result in its failure to
assist the very constituency it is obliged to serve.
The Committee believes that the Freedom to E-File Act
achieves the most important objective of allowing the public
the access and freedom to do effective, better business with
USDA via the Internet. The globally integrated e-commerce
economy demands that private and public entities move quickly
to establish efficient avenues of commerce. It is the
Committee's belief that this legislation forces USDA in the
right direction; the direction of enabling producers, farmers
and rural Americans to benefit in an age of technological
revolution.

section-by-section

Section 1. Short title

This Act may be cited as the ``Freedom to E-File Act''.

Section 2. Electronic filing and retrieval

Subsection (a) requires the Department of Agriculture to
establish an electronic filing and retrieval system to enable
farmers to electronically file all required paperwork with
USDA. It allows the public to access farm program information,
quarterly trade reports, economic and production reports and
similar information.
Subsection (b) identifies the Farm Service Agency (FSA),
the Risk Management Agency (RMA), the Natural Resources
Conservation Service (NRCS), and any Rural Development agencies
included in the Secretary's service center initiative regarding
State and field office collocation as those affected agencies
under the bill. These field agencies are in a position to best
administer the benefits produced by this legislation. The
Committee notes that the Secretary may include, and would
encourage the Secretary to include, other agencies as
appropriate.
Subsection (c) establishes a 180-day initial timetable for
implementation. The Secretary is required to complete the
establishment and initial implementation of the electronic
filing and retrieval system, allowing farmers to download forms
from the Internet and submit completed and modified forms used
by the agencies specified in subsection (b) into a more user-
friendly format, with self-help guidance materials.
Subsection (d) refers to the common computing environment
initiative within USDA. To that end, Subsection (d) requires
the Secretary to ensure that the agencies affected by the bill
use computer hardware and software that is compatible among the
agencies and will operate in a common computing environment.
Furthermore, subsection (d) stipulates that USDA develop common
Internet applications to consolidate the agencies' news,
information, and program materials.
Subsection (e) requires that farmers be able to
electronically file all paperwork required by the agencies
within two years from the date of enactment of this Act.
Subsection (f) asks the Secretary to submit a progress
report to Congress, no later than 180 days after the date of
enactment, detailing the progress made toward establishing the
electronic filing and retrieval system required by the Act.

Section 3. Availability of agency information technology funds

Section 3 authorizes the Secretary to redirect certain
amounts of discretionary funds made available to the Secretary
from the agencies in order to carry out this act. The amounts
are $3,000,000 for FY 2001 and $2,000,000 for each subsequent
fiscal year.
Additionally, section 3 requires the Secretary to notify
Congress of the amount to be reserved no later than December 1
of that fiscal year and that any reserved funds shall be used
to establish the electronic filing and retrieval system. Once
the system is established and operational, reserved amounts
shall be used for maintenance and improvements to the system.
This section also requires the Secretary to return any
unobligated funds back to the agency from which the funds were
reserved and such funds shall remain available until expended.

COMMITTEE CONSIDERATION

I--Hearings

On Thursday, June 17, 1999, the Subcommittee on Department
Operations, Oversight, Nutrition and Forestry held a public
hearing to review H.R. 852, The Freedom to E-File Act.
Testimony was taken from the administration, mortgage lending
company executives, and various trade association
representatives. The purpose of the hearing was to review
proposed legislation to establish an electronic filing and
retrieval system to enable the public to file with USDA all
required paperwork electronically. The predominate issue
discussed was how the legislation would allow producers,
farmers and rural America the access and freedom necessary to
do more efficient, better business with USDA. The Subcommittee
also examined the potential financial costs to USDA, as it
related to the proposed implementation process described in the
legislation.

II--Subcommittee

The Subcommittee on Department Operations, Oversight,
Nutrition, and Forestry met on March 23, 2000, to consider H.R.
852, the Freedom to E-File Act.
Chairman Goodlatte called the meeting to order and made
opening remarks as did Ranking Minority Member Clayton and Mr.
LaHood, the sponsor of the bill.
Without objection, Chairman Goodlatte offered an Amendment
in the Nature of a Substitute to H.R. 852, which was considered
as original text and open for amendments at any point.
Mr. LaHood offered an explanation of the legislation and
emphasized that H.R. 852 would increase not only the efficiency
of the farmers, but also increase the efficiency of the
Department of Agriculture. Additionally, Mr. LaHood noted that
similar legislation had already passed the Senate, S. 777,
sponsored by Senator Fitzgerald of Illinois.
Mr. Walden spoke in favor, indicating that the legislation
was of great benefit to American's farmers and ranchers. He
also commended his colleague, Mr. LaHood, for crafting the
bill.
No additional amendments were offered, Mr. Goodlatte moved
that the Amendment in the Nature of a Substitute be adopted. By
a voice vote, the motion was approved.
Mrs. Clayton moved that H.R. 852, as amended, be adopted
and reported favorably to the Full Committee. By voice vote,
the motion was approved.
Without objection, staff was given permission to make any
necessary clerical, technical, or conforming changes to reflect
the intent of the Subcommittee and the meeting was then
adjourned.

III--Full committee

The Committee on Agriculture met, pursuant to notice, with
a quorum present, on March 29, 2000, to consider H.R. 852, as
approved by the Subcommittee on Department Operations,
Oversight, Nutrition and Forestry.
Chairman Combest recognized Members for remarks and Ranking
Minority Member Stenholm offered strong support for the bill,
indicating that the legislation would provide greater
electronic access to USDA programs and services.
Mr. LaHood also offered a strong endorsement for the
legislation and emphasized that H.R. 852 would technologically
move agriculture into the 21st century, increasing not only the
efficiency of the farmer, but also the efficiency of the
Department of Agriculture. Additionally, Mr. LaHood, noted that
similar legislation had passed the Senate S. 777, sponsored by
Senator Fitzgerald of Illinois. Finally Mr. LaHood recognized
and thanked Chairman Combest, Ranking Minority Member Stenholm,
Subcommittee Chairman Goodlatte and Ranking Minority Member
Clayton for their support.
Committee Counsel was then recognized to give a brief
explanation of the bill and Members were given an opportunity
to ask questions.
No additional amendments were offered. Mr. Combest then
moved that the Amendment in the Nature of a Substitute as
approved by the Subcommittee be adopted. By a voice vote, the
motion was approved.
The Chairman then moved that H.R. 852, as amended, be
adopted and ordered reported favorably to the House. By a voice
vote, the motion was approved.
Without objection, staff was given permission to make any
necessary clerical, technical, or conforming changes to reflect
the intent of the Subcommittee and the meeting was adjourned
subject to the call of the chair.

REPORTING THE BILL--ROLLCALL VOTES

In compliance with clause 3(b) of rule XIII of the Rules of
the House of Representatives, H.R. 852, as amended, was
reported by voice vote with a majority quorum present. There
was no request for a recorded vote.

BUDGET ACT COMPLIANCE (SECTIONS 308, 402, AND 423)

The provisions of clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives and section 308(a)(1) of the
Congressional Budget Act of 1974 (relating to estimates of new
budget authority, new spending authority, new credit authority,
or increased or decreased revenues or tax expenditures) are not
considered applicable. The estimate and comparison required to
be prepared by the Director of the Congressional Budget Office
under clause 3(c)(3) of rule XIII of the Rules of the House of
Representatives and sections 402 and 423 of the Congressional
Budget Act of 1974 submitted to the Committee prior to the
filing of this report are as follows:

U.S. Congress,
Congressional Budget Office,
Washington, DC, April 7, 2000.
Hon. Larry Combest,
Chairman, Committee on Agriculture,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 852, the Freedom
to E-File Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Jim Langley.
Sincerely,
Steven M. Lieberman
(For Dan L. Crippen, Director).
Enclosure.

Congressional Budget Office Cost Estimate

H.R. 852--Freedom to E-File Act

Summary: H.R. 852 would require the U.S. Department of
Agriculture (USDA) to establish an electronic filing and
retrieval system to enable the public to file paperwork
electronically with selected agencies and to access public
information regarding the programs administered by these
agencies. The bill would authorize annual appropriations to
operate the system.
CBO estimates that implementation of H.R. 852 would cost
about $11 million over the 2001-2005 period, assuming
appropriation of the necessary amounts. The bill would not
affect direct spending or receipts, therefore pay-as-you-go
procedures would not apply. H.R. 852 contains no
intergovernmental or private-sector mandates as defined in the
Unfunded Mandates Reform Act (UMRA) and would impose no costs
on state, local, or tribal governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 852 is shown in the following table.
The costs of this legislation fall within budget function 350
(agriculture).

----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------
2000 2001 2002 2003 2004 2005
----------------------------------------------------------------------------------------------------------------
SPENDING SUBJECT TO APPROPRIATION

Spending under current law \1\
Budget authority/estimated authorization level.............. 10 10 11 11 11 12
Estimated outlays........................................... 43 10 11 11 11 12
Proposed changes:
Authorization level......................................... 0 3 2 2 2 2
Estimated outlays........................................... 0 3 2 2 2 2
Spending under H.R. 852:
Estimated authorization level \1\........................... 10 13 13 13 13 14
Estimated outlays........................................... 43 13 13 13 13 14
----------------------------------------------------------------------------------------------------------------
\1\ The 2000 level is the amount appropriated for USDA's Chief Information Officer that year. Estimated spending
in 2000 includes amounts from the $59 million appropriated for this activity in 1999. The 2001-2005 amounts
assume continuation of this level of spending adjusted for anticipated inflation.

Basis of estimate: Not later than two years after the date
of enactment, USDA would be required to complete the
establishment of a computer system that producers can use to
electronically file all paper work required by selected
agencies of USDA. The bill authorizes the appropriation of $3
million in fiscal year 2001 for this purpose, and $2 million in
each subsequent year.
Pay-as-you-go considerations: None.
Intergovernmental and private-sector impact: H.R. 852
contains no intergovernmental or private-sector mandates as
defined in UMRA and would have no significant impact on the
budgets of state, local, or tribal governments.
Estimate prepared by: Federal costs: Jim Landley; impact on
State, local and tribal governments: Marjorie Miller; impact on
private sector: Patrice Gordon.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.

committee cost estimate

Pursuant to clause 3(d)(2) of rule XIII of the Rules of the
House of Representatives, the Committee report incorporates the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to sections 402 and 423 of the
Congressional Budget Act of 1974.

constitutional authority statement

Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds the
Constitutional authority for this legislation in Article I,
clause 8, section 18, that grants Congress the power to make
all laws necessary and proper for carrying out the powers
vested by Congress in the Constitution of the United States or
in any department or officer thereof.

oversight statement

No summary of oversight findings and recommendations made
by the Committee on Government Reform, as provided for in
clause 3(c)(4) of rule XIII of the Rules of the House of
Representatives, was available to the Committee with reference
to the subject matter specifically addressed by H.R. 852, as
amended.

committee oversight findings

Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the Committee on Agriculture's
oversight findings and recommendations are reflected in the
body of this report.

advisory committee statement

No advisory committee within the meaning of section 5(b) of
the Federal Advisory Committee Act was created by this
legislation.

applicability to the legislative branch

The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act (Public Law
104-1).

federal mandates statement

The Committee adopted as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act (Public Law 104-4).