article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Financial Privacy and National Security Enhancement Act''. SEC. 2. ESTABLISHMENT. There is hereby established a commission to be known as the ``Presidential Commission on Financial Privacy and National Security'' (hereafter in this Act referred to as the ``Commission''). SEC. 3. DUTIES OF THE COMMISSION. (a) In General.--The Commission shall conduct an ongoing study of the practices in the financial service industry for protecting the privacy of consumer financial information, the manner and extent to which such practices are regulated by financial service regulators, and ways to improve and strengthen financial information privacy while preserving effective financial information flow for national security. (b) Specific Questions.--In conducting the study, the Commission shall address and seek comments on the following issues: (1) In what manner and to what extent would the existence of State financial privacy laws or other restrictions on the free flow of financial information impair or hinder the ability of the Federal Government to investigate money laundering or fraud, including identity theft? (2) Is the information already being distributed to the consumers concerning the privacy of consumer financial information readily understandable and is it a benefit to the consumer? (3) What is the cost, to a financial institution and ultimately to each consumer, of mailing or otherwise distributing privacy notices to each consumer in accordance with applicable law. (4) What financial information privacy concerns are not addressed by title V of the Gramm-Leach-Bliley Act and other laws and regulations implementing such title? (5) To what extent is there a uniform agreement among financial regulators on what constitutes financial privacy and what processes are utilized to review developments and technological changes in the delivery of financial services that may affect financial privacy? (6) What would be the potential impact on consumers if there were a variety of requirements with respect to financial privacy in effect under the laws of the several States and how would the existence of such a variety of requirements cost the financial services industry? SEC. 4. MEMBERSHIP. (a) Number and Appointment.--The Commission shall be composed of 11 members : (1) The Chairman of the Securities and Exchange Commission, or a Commissioner of the Securities and Exchange Commission designated by the Chairman. (2) The Chairman of the Board of Governors of the Federal Reserve System, or a member of such Board designated by the Chairman. (3) The Secretary of the Treasury, or an officer of the Department of the Treasury designated by the Secretary. (4) The Attorney General, or an officer of the Department of Justice designated by the Attorney General. (5) A State insurance commissioner appointed by the President after consulting with the National Association of Insurance Commissioners. (6) The Speaker of the House of Representatives, or a designee of the Speaker. (7) The minority leader of the House of Representatives, or a designee of the minority leader. (8) The majority leader of the Senate, or a designee of the majority leader. (9) The minority leader of the Senate, or a designee of the minority leader. (10) 2 members appointed by the President from among individuals who are especially well qualified to serve by virtue of their education, training, and experience in the financial services industry. (b) Continuation of Membership.--If a member was appointed to the Commission as a Member of Congress or by virtue of such member's position in the House of Representatives, the Senate, or a Federal agency and the member ceases to be a Member of Congress or to serve in any such position that member may continue as a member for not longer than the 30-day period beginning on the date that member ceases to be a Member of Congress or serve in such position. (c) Terms.-- (1) In general.--Each member shall be appointed for the life of the Commission. (2) Vacancies.--Any member appointed to fill a vacancy occurring before the expiration of the term for which the member's predecessor was appointed shall be appointed only for the remainder of that term. A member may serve after the expiration of that member's term until a successor has taken office. (d) Vacancy.--A vacancy in the Commission shall be filled in the manner in which the original appointment was made. (e) No Pay.--Members shall serve without pay. (f) Travel Expenses.--Each member shall receive travel expenses, including per diem in lieu of subsistence, in accordance with sections 5702 and 5703 of title 5, United States Code. (g) Quorum.--A majority of the members of the Commission shall constitute a quorum but a lesser number may hold hearings. (h) Chairperson.--The Chairperson of the Commission shall be elected by the members from the membership of the Commission. (i) Meetings.-- (1) In general.--The Commission shall meet at least once each calendar quarter at the call of the Chairperson or a majority of the members. (2) Open meetings required.--Section 552b of title 5, United States Code, shall apply. SEC. 5. DIRECTOR AND STAFF OF COMMISSION; EXPERTS AND CONSULTANTS. (a) Director.--The Commission may, without regard to section 5311(b) of title 5, United States Code, have a Director who shall be appointed by the Commission. The Director shall be paid at a rate not to exceed $140,000 per year. (b) Staff.--The Commission may appoint and fix the pay of such additional personnel as the Commission considers appropriate. (c) Applicability of Certain Civil Service Laws.--The Director and staff of the Commission may be appointed without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, and may be paid without regard to the provisions of chapter 51 and subchapter III of chapter 53 of that title relating to classification and General Schedule pay rates, except that an individual so appointed may not receive pay in excess of $140,000 per year. (d) Experts and Consultants.--Subject to regulations prescribed by the Commission, the Commission may procure temporary and intermittent services under section 3109(b) of title 5, United States Code. (e) Staff of Federal Agencies.--Upon request of the Commission, the head of any Federal department or agency may detail, on a reimbursable basis, any of the personnel of that department or agency to the Commission to assist it in carrying out its duties under this Act. SEC. 6. POWERS OF COMMISSION. (a) Hearings and Sessions.--The Commission may, for the purpose of carrying out this Act, hold hearings, sit and act at times and places, take testimony, and receive evidence as the Commission considers appropriate. (b) Powers of Members and Agents.--Any member or agent of the Commission may, if authorized by the Commission, take any action which the Commission is authorized to take by this section. (c) Obtaining Official Data.--The Commission may secure directly from any department or agency of the United States information necessary to enable it to carry out this Act. Upon request of the Chairperson of the Commission, the head of that department or agency shall furnish that information to the Commission. (d) Mails.--The Commission may use the United States mails in the same manner and under the same conditions as other departments and agencies of the United States. (e) Administrative Support Services.--Upon the request of the Commission, the Administrator of General Services shall provide to the Commission, on a reimbursable basis, the administrative support services necessary for the Commission to carry out its responsibilities under this Act. SEC. 7. REPORT. The Commission shall transmit a final report to the President and the Congress not later than March 31, 2005. The final report shall contain a detailed statement of the findings and conclusions of the Commission, together with its recommendations for such legislative or administrative actions as the Commission considers appropriate. SEC. 8. TERMINATION. The Commission shall terminate 30 days after submitting its final report pursuant to section 7. SEC. 9. MORATORIUM ON STATE FINANCIAL PRIVACY LAWS. (a) In General.--During the period beginning on the date of the enactment of this Act and ending on the date the Commission terminates under section 8, no requirement or prohibition may be imposed under the laws of any State, including laws relating to the business of insurance, concerning the use or disclosure by a financial institution of information relating to a consumer that has obtained a financial product or service from the financial institution. (b) Exception.--Subsection (a) shall not apply State insurance laws or regulations referred to in section 505(a)(6) of the Gramm-Leach- Bliley Act.
summary: Financial Privacy and National Security Enhancement Act - Establishes the Presidential Commission on Financial Privacy and National Security to study and report to Congress on financial service industry practices for protecting the privacy of consumer financial information, the manner and extent to which such practices are regulated by financial service regulators, and ways to improve and strengthen financial information privacy while preserving effective financial information flow for national security.Imposes a moratorium on State financial privacy laws during the period the Commission is performing its duties.