Cost Estimate for the Free Flow of Information Act

The Free Flow of Information Act (S 448) would exempt journalists from being compelled to disclose protected information (confidential sources or related records, communications, or documents) unless a court finds that one of the following exceptions apply:

• The party seeking protected information has exhausted all reasonable alternative sources;
• In criminal investigations or prosecutions, there are reasonable grounds to believe a crime has occurred, the Attorney General has certified that the decision to request compelled disclosure is consistent with federal regulations, if applicable, the sources or records sought are essential to the investigation, prosecution, or defense, and the journalist has not sufficiently shown that disclosure would be contrary to the public interest;
• In all other matters, the protected information sought is essential to the resolution of the matter and the public interest in compelling disclosure of the document or information involved outweighs the public interest in gathering or disseminating news information;
• The protected information was obtained during the alleged criminal conduct of the reporter;
• The information sought is necessary to prevent certain actions, including death and kidnapping, among others; and
• The information sought would materially assist the government in preventing or mitigating an act of terrorism or other act that could harm national security.

CBO estimates that implementing S. 448 would cost about $500,000 annually over the 2011-2013 period from appropriated funds. The bill would not affect direct spending or revenues. S. 448 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would not affect the budgets of state, local, or tribal governments. Based on information from the Department of Justice, we expect that the department would need to hire about three people to carry out the audits required by S. 448. CBO estimates that it would cost about $500,000 annually over the 2011-2013 period for DOJ to complete the audits and report required by the bill. Such spending would be subject to the availability of appropriated funds.