29–006 

108TH CONGRESS REPT. 108–685 " ! HOUSE OF REPRESENTATIVES 2d Session Part 1 

SOCIAL SECURITY NUMBER PRIVACY AND IDENTITY 

THEFT PREVENTION ACT OF 2004 

SEPTEMBER 14, 2004.—Ordered to be printed 

Mr. THOMAS, from the Committee on Ways and Means, 

submitted the following 

R E P O R T 

[To accompany H.R. 2971] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Ways and Means, to whom was referred the 

bill (H.R. 2971) to amend the Social Security Act to enhance Social 

Security account number privacy protections, to prevent fraudulent 

misuse of the Social Security account number, and to otherwise enhance protection against identity theft, and for other purposes, 

having considered the same, report favorably thereon with an 

amendment and recommend that the bill as amended do pass. 

CONTENTS 

Page 

I. Introduction ...................................................................................................... 15 

A. Purpose and Summary ........................................................................ 15 

B. Background .......................................................................................... 15 

C. Legislative History .............................................................................. 16 

II. Section-by-Section Summary ........................................................................... 18 

III. Vote of the Committee ..................................................................................... 41 

A. Motion To Report the Bill ................................................................... 41 

IV. Budget Effects of the Bill ................................................................................. 42 

A. Committee Estimates of Budgetary Effects ....................................... 42 

B. Budget Authority and Tax Expenditures .......................................... 42 

C. Cost Estimate Prepared by the Congressional Budget Office .......... 42 

V. Other Matters To Be Discussed Under the Rules of the House ................... 48 

A. Committee Oversight Findings and Recommendations .................... 48 

B. Statement of General Performance Goals and Objectives ................ 48 

C. Constitutional Authority Statement .................................................. 48 

D. Information Relating to Unfunded Mandates ................................... 48 

VI. Changes in Existing Law Made by the Bill, as Reported ............................. 48 

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

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SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Social Security Number Privacy 

and Identity Theft Prevention Act of 2004’’. 

(b) TABLE OF CONTENTS.—The table of contents is as follows: 

Sec. 1. Short title and table of contents. 

TITLE I—PROVISIONS RELATING TO THE SOCIAL SECURITY ACCOUNT NUMBER IN THE PUBLIC 

AND PRIVATE SECTORS 

Sec. 101. Restrictions on the sale or display to the general public of social security account numbers by governmental agencies. 

Sec. 102. Regulatory authority. 

Sec. 103. Prohibition of display of social security account numbers on checks issued for payment by governmental agencies. 

Sec. 104. Prohibition of the display of social security account numbers on driver’s licenses or motor vehicle registrations. 

Sec. 105. Prohibition of the display of personal identification numbers on government employee identification 

cards or tags. 

Sec. 106. Prohibition of inmate access to social security account numbers. 

Sec. 107. Measures to preclude unauthorized disclosure of social security account numbers and protect the confidentiality of such numbers. 

Sec. 108. Prohibition of sale, purchase, and display to the general public of the social security account number 

in the private sector. 

Sec. 109. Confidential treatment of credit header information. 

Sec. 110. Refusal to do business without receipt of social security account number considered unfair or deceptive Act or practice. 

TITLE II—MEASURES TO ENSURE THE INTEGRITY OF APPLICATIONS FOR SOCIAL SECURITY 

ACCOUNT NUMBERS AND REPLACEMENT SOCIAL SECURITY CARDS 

Sec. 201. Independent verification of birth records provided in support of applications for social security account 

numbers. 

Sec. 202. Enumeration at birth. 

Sec. 203. Study relating to use of photographic identification in connection with applications for benefits, social 

security account numbers, and social security cards. 

Sec. 204. Restrictions on issuance of multiple replacement social security cards. 

Sec. 205. Study relating to modification of the social security account numbering system to show work author- ization status. 

TITLE III—ENFORCEMENT 

Sec. 301. New criminal penalties for misuse of social security account numbers. 

Sec. 302. Extension of civil monetary penalty authority. 

Sec. 303. Criminal penalties for employees of the Social Security Administration who knowingly and fraudulently issue social security cards or social security account numbers. 

Sec. 304. Enhanced penalties in cases of terrorism, drug trafficking, crimes of violence, or prior offenses. 

TITLE I—PROVISIONS RELATING TO THE SOCIAL SECURITY ACCOUNT NUMBER IN THE 

PUBLIC AND PRIVATE SECTORS 

SEC. 101. RESTRICTIONS ON THE SALE OR DISPLAY TO THE GENERAL PUBLIC OF SOCIAL SECURITY ACCOUNT NUMBERS BY GOVERNMENTAL AGENCIES. 

(a) IN GENERAL.—Section 205(c)(2)(C) of the Social Security Act (42 U.S.C. 

405(c)(2)(C)) is amended by adding at the end the following new clause: 

‘‘(x)(I) An executive, legislative, or judicial agency or instrumentality of the Federal Government or of a State or a political subdivision thereof or a trustee appointed in a case under title 11, United States Code (or person acting as an agent 

of such an agency or instrumentality or trustee) may not sell or display to the general public any social security account number if such number has been disclosed 

to such agency, instrumentality, trustee, or agent pursuant to the assertion by such 

an agency, instrumentality, trustee, or agent to any person that disclosure of such 

number is mandatory. Notwithstanding the preceding sentence, such number may 

be sold or displayed to the general public in accordance with the exceptions specified 

in subclauses (II), (III), (IV), (V), (VI), (VII), and (VIII) (and for no other purpose). 

‘‘(II) Notwithstanding subclause (I), a social security account number may be sold 

by an agency, instrumentality, trustee, or agent referred to in subclause (I) to the 

extent that such sale is specifically authorized by this Act. 

‘‘(III) Notwithstanding subclause (I), a social security account number may be sold 

by an agency, instrumentality, trustee, or agent referred to in subclause (I) to the 

extent that is necessary or appropriate for law enforcement or national security purposes, as determined under regulations which shall be issued as provided in subparagraph (I) of this paragraph. 

‘‘(IV) Notwithstanding subclause (I), a social security account number may be sold 

by an agency, instrumentality, trustee, or agent referred to in subclause (I) to the 

extent that such sale is required to comply with a tax law of the United States or 

of any State (or political subdivision thereof). 

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‘‘(V) Notwithstanding subclause (I), a social security account number may be sold 

by a State department of motor vehicles as authorized under subsection (b) of section 2721 of title 18, United States Code, if such number is to be used pursuant 

to such sale solely for purposes permitted under paragraph (1), (6), or (9) of such 

subsection. 

‘‘(VI) Notwithstanding subclause (I), a social security account number may be sold 

or otherwise made available by an agency, instrumentality, trustee, or agent referred to in subclause (I) to a consumer reporting agency (as defined in section 

603(f) of the Fair Credit Reporting Act (15 U.S.C. 1681a(f))) for use or disclosure 

solely for permissible purposes described in section 604(a) of such Act (15 U.S.C. 

1681b(a)). 

‘‘(VII) Notwithstanding subclause (I), a social security account number may be 

sold by an agency, instrumentality, trustee, or agent referred to in subclause (I) to 

the extent necessary for research (other than market research) conducted by any 

agency or instrumentality referred to in subclause (I) (or an agent of such an agency 

or instrumentality) for the purpose of advancing the public good, on the condition 

that the researcher provides adequate assurances that the social security account 

numbers will not be used to harass, target, or publicly reveal information concerning 

any identifiable individuals, that information about identifiable individuals obtained 

from the research will not be used to make decisions that directly affect the rights, 

benefits, or privileges of specific individuals, and that the researcher has in place 

appropriate safeguards to protect the privacy and confidentiality of any information 

about identifiable individuals, including procedures to ensure that the social security account numbers will be encrypted or otherwise appropriately secured from unauthorized disclosure. In the case of social security account numbers which constitute personally identifiable medical information, the Commissioner of Social Security, with respect to medical research referred to in the preceding sentence, and the 

Attorney General of the United States, with respect to any medical research not referred to in the preceding sentence but which is treated in regulations of the Attorney General issued pursuant to subclause (VIII), shall maintain ongoing consultation with the Office for Civil Rights of the Department of Health and Human Services to ensure that the sale or purchase of such social security account numbers is 

permitted only in compliance with existing Federal rules and regulations prescribed 

by the Secretary of Health and Human Services pursuant to section 264(c) of the 

Health Insurance Portability and Accountability Act of 1996 (110 Stat. 2033). 

‘‘(VIII) Notwithstanding subclause (I), a social security account number may be 

sold or displayed to the general public by an agency, instrumentality, trustee, or 

agent referred to in subclause (I) under such other circumstances as may be specified in regulations issued as provided in subparagraph (I) of this paragraph. 

‘‘(IX) This clause does not apply with respect to a social security account number 

of a deceased individual. 

‘‘(X) For purposes of this clause, the term ‘sell’ means, in connection with a social 

security account number, to accept an item of material value in exchange for such 

number. 

‘‘(XI) For purposes of this clause, the term ‘display to the general public’ shall 

have the meaning provided such term in section 208A(a)(3)(A). In any case in which 

an agency, instrumentality, trustee, or agent referred to in subclause (I) requires 

transmittal to such agency, instrumentality, trustee, or agent of an individual’s social security account number by means of the Internet without reasonable provisions 

to ensure that such number is encrypted or otherwise appropriately secured from 

disclosure, any such transmittal of such number as so required shall be treated, for 

purposes of this clause, as a ‘display to the general public’ of such number by such 

agency, instrumentality, trustee, or agent for purposes of this clause. 

‘‘(XII) For purposes of this clause, the term social security account number includes any derivative of such number. Notwithstanding the preceding sentence, any 

expression, contained in or on any item sold or displayed to the general public, shall 

not be treated as a social security account number solely because such expression 

sets forth not more than the last 4 digits of such number if the remainder of such 

number cannot be determined based solely on such expression or any other matter 

presented in such material. 

‘‘(XIII) Nothing in this clause shall be construed to supersede, alter, or affect any 

restriction or limitation on the sale or display to the general public of social security 

account numbers, provided in any Federal statute, regulation, order, or interpretation, if the restriction or limitation is greater than that provided under this clause, 

as determined under applicable regulations issued by the Commissioner of Social 

Security or by the Attorney General of the United States or another agency or instrumentality of the United States as provided in subparagraph (I) of this paragraph.’’. 

(b) EFFECTIVE DATE AND RELATED RULES.— 

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(1) IN GENERAL.—Initial final regulations prescribed to carry out the provisions of section 205(c)(2)(C)(x) of the Social Security Act (added by this section) 

shall be issued not later than the last date of the 18th calendar month following 

the date of the enactment of this Act. Such provisions shall take effect, with 

respect to matters governed by such regulations issued by the Commissioner of 

Social Security, or (pursuant to section 205(c)(2)(I) of such Act (added by section 

102)) by the Attorney General of the United States or any other agency or instrumentality of the United States, 1 year after the date of the issuance of such 

regulations by the Commissioner, the Attorney General, or such other agency 

or instrumentality, respectively. Such amendment shall apply in the case of displays to the general public, as defined in section 208A(a)(3) of such Act (added 

by section 108), to such displays originally occurring after such 1-year period. 

Such provisions shall not apply with respect to any display of a record (containing a social security account number (or any derivative thereof)) generated 

prior to the close of such 1-year period. 

(2) SUNSET OF EXCEPTION.—The last sentence of subclause (XII) of section 

205(c)(2)(C)(x) of the Social Security Act (added by this section) shall cease to 

be effective with respect to sales, purchases, or displays to the general public 

occurring after 6 years after the 18th calendar month referred to in paragraph 

(1). 

SEC. 102. REGULATORY AUTHORITY. 

Section 205(c)(2) of the Social Security Act (42 U.S.C. 405(c)(2)) is amended by 

adding at the end the following new subparagraph: 

‘‘(I)(i) The Attorney General of the United States shall prescribe regulations to 

carry out the provisions of subclauses (III) and (VIII) of subparagraph (C)(x) of this 

paragraph, subparagraphs (A) and (B) of section 208A(b)(2), section 208A(b)(3)(B), 

and section 208A(c)(2). In issuing such regulations, the Attorney General shall consult with the Commissioner of Social Security, the Secretary of Health and Human 

Services, the Secretary of Homeland Security, the Secretary of the Treasury, the 

Federal Trade Commission, the Federal banking agencies (as defined in section 3 

of the Federal Deposit Insurance Act), the National Credit Union Administration, 

the Securities and Exchange Commission, State attorneys general, and such representatives of the State insurance commissioners as may be designated by the National Association of Insurance Commissioners. Any agency or instrumentality of 

the United States may exercise the authority of the Attorney General under this 

subparagraph, with respect to matters otherwise subject to regulation by such agency or instrumentality, to the extent determined appropriate in regulations of the Attorney General. 

‘‘(ii) In issuing the regulations described in clause (i) pursuant to the provisions 

of subparagraph (C)(x)(III), paragraph (A) or (B) of section 208A(b)(2), or section 

208A(c)(2) (relating to law enforcement and national security), the Attorney General 

may authorize the sale or purchase of Social Security account numbers only if the 

Attorney General determines that— 

‘‘(I) such sale or purchase would serve a compelling public interest that cannot reasonably be served through alternative measures, and 

‘‘(II) such sale or purchase will not pose an unreasonable risk of identity theft, 

or bodily, emotional, or financial harm to an individual (taking into account any 

restrictions and conditions that the Attorney General imposes on the sale, purchase, or disclosure). 

‘‘(iii) In issuing the regulations described in clause (i) pursuant to the provisions 

of subparagraph (C)(x)(VIII) of this paragraph or section 208A(b)(3)(B), the Attorney 

General may authorize the sale, purchase, or display to the general public of social 

security account numbers only after considering, among other relevant factors— 

‘‘(I) the associated cost or burden to the general public, businesses, commercial enterprises, non-profit organizations, and Federal, State, and local governments; and 

‘‘(II) the associated benefit to the general public, businesses, commercial enterprises, non-profit associations, and Federal, State, and local governments. 

‘‘(iv) If, after considering the factors in clause (iii), the Attorney General authorizes, in regulations referred to in clause (iii), the sale, purchase, or display to the 

general public of social security account numbers, the Attorney General shall impose 

restrictions and conditions on the sale, purchase, or display to the general public 

to the extent necessary— 

‘‘(I) to provide reasonable assurances that social security account numbers 

will not be used to commit or facilitate fraud, deceptions, or crime, and 

‘‘(II) to prevent an unreasonable risk of identity theft or bodily, emotional, or 

financial harm to any individual, considering the nature, likelihood, and severity of the anticipated harm that could result from the sale, purchase, or display 

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to the general public of social security account numbers, together with the nature, likelihood, and extent of any benefits that could be realized. 

‘‘(v) In the issuance of regulations pursuant to this subparagraph, notice shall be 

provided as described in paragraphs (1), (2), and (3) of section 553(b) of title 5, 

United States Code, and opportunity to participate in the rule making shall be provided in accordance with section 553(c) of such title. 

‘‘(vi) Each agency and instrumentality exercising authority to issue regulations 

under this subparagraph shall consult and coordinate with the other such agencies 

and instrumentalities for the purposes of assuring, to the extent possible, that the 

regulations prescribed by each such agency or instrumentality are consistent and 

comparable, as appropriate, with the regulations prescribed by the other such agencies and instrumentalities. The Attorney General shall undertake to facilitate such 

consultation and coordination. 

‘‘(vii) For purposes of this subparagraph, the terms ‘sell’, ‘purchase’, and ‘display 

to the general public’ shall have the meanings provided such terms under subparagraph (C)(x) of this paragraph or under section 208A(a), as applicable. 

‘‘(viii) For purposes of this subparagraph, subparagraph (C)(x)(XI) shall apply.’’. 

SEC. 103. PROHIBITION OF DISPLAY OF SOCIAL SECURITY ACCOUNT NUMBERS ON CHECKS 

ISSUED FOR PAYMENT BY GOVERNMENTAL AGENCIES. 

(a) IN GENERAL.—Section 205(c)(2)(C) of the Social Security Act (42 U.S.C. 

405(c)(2)(C)) (as amended by section 101) is amended further by adding at the end 

the following new clause: 

‘‘(xi) No executive, legislative, or judicial agency or instrumentality of the Federal 

Government or of a State or a political subdivision thereof or trustee appointed in 

a case under title 11, United States Code (or person acting as an agent of such an 

agency or instrumentality or trustee) may include the social security account number of any individual (or any derivative of such number) on any check issued for 

any payment by the Federal Government, any State or political subdivision thereof, 

or any agency or instrumentality thereof, or such trustee or on any document attached to or accompanying such a check.’’. 

(b) EFFECTIVE DATE.—The amendment made by this section shall apply with respect to checks (and documents attached to or accompanying such checks) issued 

after 1 year after the date of the enactment of this Act. 

SEC. 104. PROHIBITION OF THE DISPLAY OF SOCIAL SECURITY ACCOUNT NUMBERS ON DRIVER’S LICENSES OR MOTOR VEHICLE REGISTRATIONS. 

(a) IN GENERAL.—Section 205(c)(2)(C)(vi) of the Social Security Act (42 U.S.C. 

405(c)(2)(C)(vi)) is amended— 

(1) by inserting ‘‘(I)’’ after ‘‘(vi)’’; and 

(2) by adding at the end the following new subclause: 

‘‘(II) Any State or political subdivision thereof (and any person acting as an agent 

of such an agency or instrumentality), in the administration of any driver’s license 

or motor vehicle registration law within its jurisdiction, may not display a social security account number issued by the Commissioner of Social Security (or any derivative of such number) on any driver’s license or motor vehicle registration or any 

other document issued by such State or political subdivision to an individual for 

purposes of identification of such individual or include on any such licence, registration, or other document a magnetic strip, bar code, or other means of communication 

which conveys such number (or derivative thereof).’’. 

(b) EFFECTIVE DATE.—The amendments made by this section shall apply with respect to licenses, registrations, and other documents issued or reissued after 1 year 

after the date of the enactment of this Act. 

SEC. 105. PROHIBITION OF THE DISPLAY OF PERSONAL IDENTIFICATION NUMBERS ON GOVERNMENT EMPLOYEE IDENTIFICATION CARDS OR TAGS. 

(a) IN GENERAL.—Section 205(c)(2)(C) of the Social Security Act (42 U.S.C. 

405(c)(2)(C)) (as amended by the preceding provisions of this title) is amended further by adding at the end the following new clause: 

‘‘(xii) No executive, legislative, or judicial agency or instrumentality of the Federal 

Government or of a State or political subdivision thereof, and no other person offering benefits in connection with an employee benefit plan maintained by such agency 

or instrumentality or acting as an agent of such agency or instrumentality, may display a social security account number (or any derivative thereof) on any card or tag 

that is commonly provided to employees of such agency or instrumentality (or to 

their family members) for purposes of identification or include on such card or tag 

a magnetic strip, bar code, or other means of communication which conveys such 

number.’’. 

(b) EFFECTIVE DATE.—The amendment made by this section shall apply with respect to cards or tags issued after 1 year after the date of the enactment of this 

Act. 

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SEC. 106. PROHIBITION OF INMATE ACCESS TO SOCIAL SECURITY ACCOUNT NUMBERS. 

(a) IN GENERAL.—Section 205(c)(2)(C) of the Social Security Act (42 U.S.C. 

405(c)(2)(C)) (as amended by the preceding provisions of this title) is amended further by adding at the end the following new clause: 

‘‘(xiii) No executive, legislative, or judicial agency or instrumentality of the Federal Government or of a State or political subdivision thereof (or person acting as 

an agent of such an agency or instrumentality) may employ, or enter into a contract 

for the use or employment of, prisoners in any capacity that would allow such prisoners access to the social security account numbers of other individuals. For purposes of this clause, the term ‘prisoner’ means an individual confined in a jail, prison, or other penal institution or correctional facility.’’. 

(b) EFFECTIVE DATE.— (1) IN GENERAL.—Except as provided in paragraph (2), the amendment made 

by this section shall apply with respect to employment of prisoners, or entry 

into contract for the use or employment of prisoners, on or after the date of the 

enactment of this Act. 

(2) TREATMENT OF CURRENT ARRANGEMENTS.—In the case of— 

(A) prisoners employed as described in clause (xiii) of section 205(c)(2)(C) 

of the Social Security Act (as added by this section) on the date of the enactment of this Act, and 

(B) contracts described in such clause in effect on such date, 

the amendment made by this section shall take effect 90 days after the date 

of the enactment of this Act. 

SEC. 107. MEASURES TO PRECLUDE UNAUTHORIZED DISCLOSURE OF SOCIAL SECURITY ACCOUNT NUMBERS AND PROTECT THE CONFIDENTIALITY OF SUCH NUMBERS. 

(a) IN GENERAL.—Section 205(c)(2)(C) of the Social Security Act (42 U.S.C. 

405(c)(2)(C)) (as amended by the preceding provisions of this title) is amended further by adding at the end the following new clause: 

‘‘(xiv) Except as otherwise provided in this paragraph, in the case of any executive, legislative, or judicial agency or instrumentality of the Federal Government or 

of a State or political subdivision thereof and any trustee appointed in a case under 

title 11, United States Code (and any agent of such agency, instrumentality, or 

trustee) having in its possession an individual’s social security account number— 

‘‘(I) no officer or employee thereof shall have access to such number for any 

purpose other than the effective administration of the statutory provisions governing its functions, 

‘‘(II) such agency, instrumentality, trustee, or agent shall restrict, to the satisfaction of the Commissioner of Social Security, access to social security account 

numbers obtained thereby to officers and employees thereof whose duties or responsibilities require access for the administration or enforcement of such provisions, and 

‘‘(III) such agency, instrumentality, trustee, or agent shall provide such other 

safeguards as the Commissioner of Social Security determines to be necessary 

or appropriate to preclude unauthorized access to the social security account 

number and to otherwise protect the confidentiality of such number. 

For purposes of this clause the term social security account number includes any 

derivative thereof. ’’. 

(b) EFFECTIVE DATE.—The amendment made by this section shall take effect 1 

year after the date of the enactment of this Act. 

SEC. 108. PROHIBITION OF THE SALE, PURCHASE, AND DISPLAY TO THE GENERAL PUBLIC OF 

THE SOCIAL SECURITY ACCOUNT NUMBER IN THE PRIVATE SECTOR. 

(a) IN GENERAL.—Title II of the Social Security Act is amended by inserting after 

section 208 (42 U.S.C. 408) the following new section: 

‘‘PROHIBITION OF THE SALE, PURCHASE, AND DISPLAY TO THE GENERAL PUBLIC OF THE

SOCIAL SECURITY ACCOUNT NUMBER IN THE PRIVATE SECTOR

‘‘Definitions 

‘‘SEC. 208A. (a) For purposes of this section: 

‘‘(1) PERSON.— 

‘‘(A) IN GENERAL.—Subject to subparagraph (B), the term ‘person’ means 

any individual, partnership, corporation, trust, estate, cooperative, association, or any other entity. 

‘‘(B) GOVERNMENTAL ENTITIES.—Such term does not include a governmental entity. Nothing in this subparagraph shall be construed to authorize, in connection with a governmental entity, an act or practice otherwise 

prohibited under this section or section 205(c)(2)(C). 

‘‘(2) SELLING AND PURCHASING.— 

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‘‘(A) IN GENERAL.—Subject to subparagraph (B)— 

‘‘(i) SELL.—The term ‘sell’ in connection with a social security account 

number means to obtain, directly or indirectly, anything of value in exchange for such number. 

‘‘(ii) PURCHASE.—The term ‘purchase’ in connection with a social security account number means to provide, directly or indirectly, anything of value in exchange for such number. 

‘‘(B) EXCEPTIONS.—The terms ‘sell’ and ‘purchase’ in connection with a social security account number do not include the submission of such number 

as part of— 

‘‘(i) the process for applying for any type of Government benefits or 

programs (such as grants or loans or welfare or other public assistance 

programs), 

‘‘(ii) the administration of, or provision of benefits under, an employee 

benefit plan, or 

‘‘(iii) the sale, lease, merger, transfer, or exchange of a trade or business. 

‘‘(3) DISPLAY TO THE GENERAL PUBLIC.— 

‘‘(A) IN GENERAL.—The term ‘display to the general public’ means, in connection with a social security account number, to intentionally place such 

number in a viewable manner on an Internet site that is available to the 

general public or to make such number available in any other manner intended to provide access to such number by the general public. 

‘‘(B) INTERNET TRANSMISSIONS.—In any case in which a person requires, 

as a condition of doing business with such person, transmittal to such person of an individual’s social security account number by means of the Internet without reasonable provisions to ensure that such number is encrypted 

or otherwise secured from disclosure, any such transmittal of such number 

as so required shall be treated as a ‘display to the general public’ of such 

number by such person. 

‘‘(4) SOCIAL SECURITY ACCOUNT NUMBER.—The term ‘social security account 

number’ has the meaning given such term in section 208(c), except that such 

term includes any derivative of such number. Notwithstanding the preceding 

sentence, any expression, contained in or on any item sold or displayed to the 

general public, shall not be treated as a social security account number solely 

because such expression sets forth not more than the last 4 digits of such number, if the remainder of such number cannot be determined based solely on such 

expression or any other matter presented in or on such item. 

‘‘Prohibition of Sale, Purchase, and Display to the General Public 

‘‘(b)(1) Except as provided in paragraph (2), it shall be unlawful for any person 

to— 

‘‘(A) sell or purchase a social security account number or display to the general public a social security account number, or 

‘‘(B) obtain or use any individual’s social security account number for the purpose of locating or identifying such individual with the intent to physically injure or harm such individual or using the identity of such individual for any 

illegal purpose. 

‘‘(2) Notwithstanding paragraph (1), and subject to paragraph (3), a social security 

account number may be sold or purchased by any person to the extent provided in 

this subsection (and for no other purpose) as follows: 

‘‘(A) to the extent necessary for law enforcement, including (but not limited 

to) the enforcement of a child support obligation, as determined under regulations issued as provided in section 205(c)(2)(I); 

‘‘(B) to the extent necessary for national security purposes, as determined 

under regulations issued as provided in section 205(c)(2)(I); 

‘‘(C) to the extent necessary for public health purposes; 

‘‘(D) to the extent necessary in emergency situations to protect the health or 

safety of 1 or more individuals; 

‘‘(E) to the extent that the sale or purchase is required to comply with a tax 

law of the United States or of any State (or political subdivision thereof); 

‘‘(F) to the extent that the sale or purchase is to or by a consumer reporting 

agency (as defined in section 603(f) of the Fair Credit Reporting Act (15 U.S.C. 

1681a(f))) for use or disclosure solely for permissible purposes described in section 604(a) of such Act (15 U.S.C. 1681b(a)); and 

‘‘(G) to the extent necessary for research (other than market research) conducted by an agency or instrumentality of the United States or of a State or 

political subdivision thereof (or an agent of such an agency or instrumentality) 

8 

for the purpose of advancing the public good, on the condition that the researcher provides adequate assurances that— 

‘‘(i) the social security account numbers will not be used to harass, target, 

or publicly reveal information concerning any identifiable individuals; 

‘‘(ii) information about identifiable individuals obtained from the research 

will not be used to make decisions that directly affect the rights, benefits, 

or privileges of specific individuals; and 

‘‘(iii) the researcher has in place appropriate safeguards to protect the privacy and confidentiality of any information about identifiable individuals, 

including procedures to ensure that the social security account numbers 

will be encrypted or otherwise appropriately secured from unauthorized disclosure. 

‘‘(3) Notwithstanding paragraph (1), a social security account number assigned to 

an individual may be sold, purchased, or displayed to the general public by any person— 

‘‘(A) to the extent consistent with such individual’s voluntary and affirmative 

written consent to the sale, purchase, or display of the social security account 

number, but only if— 

‘‘(i) the terms of the consent and the right to refuse consent are presented 

to the individual in a clear, conspicuous, and understandable manner, 

‘‘(ii) the individual is placed under no obligation to provide consent to any 

such sale, purchase, or display, and 

‘‘(iii) the terms of the consent authorize the individual to limit the sale, 

purchase, or display to purposes directly associated with the transaction 

with respect to which the consent is sought, and 

‘‘(B) under such circumstances as may be deemed appropriate in regulations 

issued as provided under section 205(c)(2)(I). 

‘‘(4) In the case of social security account numbers which constitute personally 

identifiable medical information— 

‘‘(A) the Commissioner of Social Security, with respect to medical research referred to in paragraph (3)(A), and 

‘‘(B) the Attorney General of the United States, with respect to any medical 

research not referred to in paragraph (3)(A) but which is treated in regulations 

of the Attorney General issued pursuant to paragraph (3)(B), 

shall maintain ongoing consultation with the Office for Civil Rights of the Department of Health and Human Services to ensure that the sale or purchase of such 

social security account numbers is permitted only in compliance with existing Federal rules and regulations prescribed by the Secretary of Health and Human Services pursuant to section 264(c) of the Health Insurance Portability and Accountability Act of 1996 (110 Stat. 2033). 

‘‘Prohibition of Unauthorized Disclosure to Government Agencies or 

Instrumentalities 

‘‘(c)(1) It shall be unlawful for any person to communicate by any means to any 

agency or instrumentality of the United States or of any State or political subdivision thereof the social security account number of any individual other than such 

person without the written permission of such individual, unless the number was 

requested by the agency or instrumentality. In the case of an individual who is legally incompetent, permission provided by the individual’s legal representatives 

shall be deemed to be permission provided by such individual. 

‘‘(2) Paragraph (1) shall not apply to the extent necessary— 

‘‘(A) for law enforcement, including (but not limited to) the enforcement of a 

child support obligation, or 

‘‘(B) for national security purposes, 

as determined under regulations issued as provided under section 205(c)(2)(I). 

‘‘Prohibition of the Displays on Cards or Tags Required for Access to Goods, 

Services, or Benefits 

‘‘(d) No person may display a social security account number on any card or tag 

issued to any other person for the purpose of providing such other person access to 

any goods, services, or benefits or include on such card or tag a magnetic strip, bar 

code, or other means of communication which conveys such number. 

‘‘Prohibition of the Displays on Employee Identification Cards or Tags 

‘‘(e) No person that is an employer, and no other person offering benefits in connection with an employee benefit plan maintained by such employer or acting as an 

agent of such employer, may display a social security account number on any card 

9 

or tag that is commonly provided to employees of such employer (or to their family 

members) for purposes of identification or include on such card or tag a magnetic 

strip, bar code, or other means of communication which conveys such number. 

‘‘Measures to Preclude Unauthorized Disclosure of Social Security Account Numbers 

and Protect the Confidentiality of Such Numbers 

‘‘(f) Subject to the preceding provisions of this section, any person having in such 

person’s records the social security account number of any individual other than 

such person shall, to the extent that such records are maintained for the conduct 

of such person’s trade or business— 

‘‘(1) ensure that no officer or employee thereof has access to such number for 

any purpose other than as necessary for the conduct of such person’s trade or 

business, 

‘‘(2) restrict, in accordance with regulations of the Commissioner, access to social security account numbers obtained thereby to officers and employees thereof whose duties or responsibilities require access for the conduct of such person’s trade or business, and 

‘‘(3) provide such safeguards as may be specified, in regulations of the Commissioner, to be necessary or appropriate to preclude unauthorized access to the 

social security account number and to otherwise protect the confidentiality of 

such number. 

‘‘Deceased Individuals 

‘‘(g) This section does not apply with respect to the social security account number 

of a deceased individual. 

‘‘Criminal Penalty 

‘‘(h) Any person who violates this section shall be guilty of a felony and upon conviction thereof shall be fined under title 18, United States Code, or imprisoned for 

not more than 5 years, or both. 

‘‘Applicability of Other Protections 

‘‘(i) Nothing in this section shall be construed to supersede, alter, or affect any 

restriction or limitation on the sale, purchase, display to the general public, or other 

disclosure of social security account numbers, provided in any Federal statute, regulation, order, or interpretation, if the restriction or limitation is greater than that 

provided under this section, as determined under applicable regulations issued by 

the Commissioner of Social Security or by the Attorney General of the United States 

or another agency or instrumentality of the United States as provided in section 

205(c)(2)(I).’’. 

(b) EFFECTIVE DATE AND RELATED RULES.— 

(1) IN GENERAL.—Initial final regulations prescribed to carry out the provisions of section 208A of the Social Security Act (added by this section) shall be 

issued not later than the last date of the 18th calendar month following the 

date of the enactment of this Act. Such provisions shall take effect, with respect 

to matters governed by such regulations issued by the Commissioner of Social 

Security, or (pursuant to section 205(c)(2)(I) of such Act (added by section 102)) 

by the Attorney General of the United States or any other agency or instrumentality of the United States, 1 year after the date of the issuance of such regulations by the Commissioner, the Attorney General, or such other agency or instrumentality, respectively. Section 208A(b) of such Act shall apply in the case 

of displays to the general public (as defined in section 208A(a)(3) of such Act) 

to such displays to the general public originally occurring after such 1-year period. Such provisions shall not apply with respect to any such display to the 

general public of a record (containing a social security account number (or any 

derivative thereof)) generated prior to the close of such 1-year period. 

(2) SUNSET OF EXCEPTION.—The last sentence of section 208A(a)(4) of the Social Security Act (added by this section) shall cease to be effective with respect 

to sales, purchases, or displays to the general public occurring after 6 years 

after the 18th calendar month referred to in paragraph (1). 

SEC. 109. CONFIDENTIAL TREATMENT OF CREDIT HEADER INFORMATION. 

(a) IN GENERAL.—Section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a) 

is amended by adding at the end the following new subsection: 

‘‘(q) CONFIDENTIAL TREATMENT OF CREDIT HEADER INFORMATION.—Information regarding the social security account number of the consumer, or any derivative thereof, may not be furnished to any person by a consumer reporting agency other than 

10 

in a full consumer report furnished in accordance with section 604 and other requirements of this title.’’. 

(b) EFFECTIVE DATE.—The amendment made by this section shall take effect 90 

days after the date of the enactment of this Act. 

SEC. 110. REFUSAL TO DO BUSINESS WITHOUT RECEIPT OF SOCIAL SECURITY ACCOUNT 

NUMBER CONSIDERED UNFAIR OR DECEPTIVE ACT OR PRACTICE. 

(a) IN GENERAL.—Any person who refuses to do business with an individual because the individual will not consent to the receipt by such person of the social security account number of such individual shall be considered to have committed an 

unfair or deceptive act or practice in violation of section 5 of the Federal Trade Commission Act (15 U.S.C. 45). Action may be taken under such section 5 against such 

a person. 

(b) EXCEPTION.—Subsection (a) shall not apply to any person in any case in which 

such person is expressly required under Federal law, in connection with doing business with an individual, to submit to the Federal Government such individual’s social security account number. 

(c) EFFECTIVE DATE.—The preceding provisions of this section shall apply with respect to acts or practices committed after 180 days after the date of the enactment 

of this Act. 

TITLE II—MEASURES TO ENSURE THE INTEGRITY OF APPLICATIONS FOR SOCIAL SECURITY ACCOUNT NUMBERS AND REPLACEMENT SOCIAL SECURITY CARDS 

SEC. 201. INDEPENDENT VERIFICATION OF BIRTH RECORDS PROVIDED IN SUPPORT OF APPLICATIONS FOR SOCIAL SECURITY ACCOUNT NUMBERS. 

(a) APPLICATIONS FOR SOCIAL SECURITY ACCOUNT NUMBERS.—Section 

205(c)(2)(B)(ii) of the Social Security Act (42 U.S.C. 405(c)(2)(B)(ii)) is amended— 

(1) by inserting ‘‘(I)’’ after ‘‘(ii)’’; and 

(2) by adding at the end the following new subclause: 

‘‘(II) With respect to an application for a social security account number for an 

individual, other than for purposes of enumeration at birth, the Commissioner shall 

require independent verification of any birth record provided by the applicant in 

support of the application. The Commissioner may provide by regulation for reasonable exceptions from the requirement for independent verification under this subclause in any case in which the Commissioner determines there is minimal opportunity for fraud.’’. 

(b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply with 

respect to applications filed after 270 days after the date of the enactment of this 

Act. 

(c) STUDY REGARDING APPLICATIONS FOR REPLACEMENT SOCIAL SECURITY

CARDS.— 

(1) IN GENERAL.—As soon as practicable after the date of the enactment of 

this Act, the Commissioner of Social Security shall undertake a study to test 

the feasibility and cost effectiveness of verifying all identification documents 

submitted by an applicant for a replacement social security card. As part of 

such study, the Commissioner shall determine the feasibility of, and the costs 

associated with, the development of appropriate electronic processes for third 

party verification of any such identification documents which are issued by 

agencies and instrumentalities of the Federal Government and of the States 

(and political subdivisions thereof). 

(2) REPORT.—Not later than 2 years after the date of the enactment of this 

Act, the Commissioner shall report to the Committee on Ways and Means of 

the House of Representatives and the Committee on Finance of the Senate regarding the results of the study undertaken under paragraph (1). Such report 

shall contain such recommendations for legislative changes as the Commissioner considers necessary to implement needed improvements in the process 

for verifying identification documents submitted by applicants for replacement 

social security cards. 

SEC. 202. ENUMERATION AT BIRTH. 

(a) IMPROVEMENT OF APPLICATION PROCESS.— 

(1) IN GENERAL.—As soon as practicable after the date of the enactment of 

this Act, the Commissioner of Social Security shall undertake to make improvements to the enumeration at birth program for the issuance of social security 

11 

account numbers to newborns. Such improvements shall be designed to prevent— 

(A) the assignment of social security account numbers to unnamed children; 

(B) the issuance of more than 1 social security account number to the 

same child; and 

(C) other opportunities for fraudulently obtaining a social security account number. 

(2) REPORT TO THE CONGRESS.—Not later than 1 year after the date of the 

enactment of this Act, the Commissioner shall transmit to each House of the 

Congress a report specifying in detail the extent to which the improvements required under paragraph (1) have been made. 

(b) STUDY REGARDING PROCESS FOR ENUMERATION AT BIRTH.— (1) IN GENERAL.—As soon as practicable after the date of the enactment of 

this Act, the Commissioner of Social Security shall undertake a study to determine the most efficient options for ensuring the integrity of the process for enumeration at birth. Such study shall include an examination of available methods for reconciling hospital birth records with birth registrations submitted to 

agencies of States and political subdivisions thereof and with information provided to the Commissioner as part of the process for enumeration at birth. 

(2) REPORT.—Not later than 18 months after the date of the enactment of this 

Act, the Commissioner shall report to the Committee on Ways and Means of 

the House of Representatives and the Committee on Finance of the Senate regarding the results of the study undertaken under paragraph (1). Such report 

shall contain such recommendations for legislative changes as the Commissioner considers necessary to implement needed improvements in the process 

for enumeration at birth. 

SEC. 203. STUDY RELATING TO USE OF PHOTOGRAPHIC IDENTIFICATION IN CONNECTION 

WITH APPLICATIONS FOR BENEFITS, SOCIAL SECURITY ACCOUNT NUMBERS, AND 

SOCIAL SECURITY CARDS. 

(a) IN GENERAL.—As soon as practicable after the date of the enactment of this 

Act, the Commissioner of Social Security shall undertake a study to— 

(1) determine the best method of requiring and obtaining photographic identification of applicants for old-age, survivors, and disability insurance benefits 

under title II of the Social Security Act, for a social security account number, 

or for a replacement social security card, and of providing for reasonable exceptions to any requirement for photographic identification of such applicants that 

may be necessary to promote efficient and effective administration of this title, 

and 

(2) evaluate the benefits and costs of instituting such a requirement for photographic identification, including the degree to which the security and integrity 

of the old-age, survivors, and disability insurance program would be enhanced. 

(b) REPORT.—Not later than 18 months after the date of the enactment of this Act, 

the Commissioner shall report to the Committee on Ways and Means of the House 

of Representatives and the Committee on Finance of the Senate regarding the results of the study undertaken under paragraph (1). Such report shall contain such 

recommendations for legislative changes as the Commissioner considers necessary 

relating to requirements for photographic identification of applicants described in 

subsection (a). 

SEC. 204. RESTRICTIONS ON ISSUANCE OF MULTIPLE REPLACEMENT SOCIAL SECURITY 

CARDS. 

(a) IN GENERAL.—Section 205(c)(2)(G) of the Social Security Act (42 U.S.C. 

405(c)(2)(G)) is amended by adding at the end the following new sentence: ‘‘The 

Commissioner shall restrict the issuance of multiple replacement social security 

cards to any individual to 3 per year and to 10 for the life of the individual, except 

in any case in which the Commissioner determines there is minimal opportunity for 

fraud.’’. 

(b) REGULATIONS AND EFFECTIVE DATE.—The Commissioner of Social Security 

shall issue regulations under the amendment made by subsection (a) not later than 

1 year after the date of the enactment of this Act. Systems controls developed by 

the Commissioner pursuant to such amendment shall take effect upon the earlier 

of the issuance of such regulations or the end of such 1-year period. 

SEC. 205. STUDY RELATING TO MODIFICATION OF THE SOCIAL SECURITY ACCOUNT NUMBERING SYSTEM TO SHOW WORK AUTHORIZATION STATUS. 

(a) IN GENERAL.—As soon as practicable after the date of the enactment of this 

Act, the Commissioner of Social Security, in consultation with the Secretary of 

Homeland Security, shall undertake a study to examine the best method of modifying the social security account number assigned to individuals who— 

12 

(1) are not citizens of the United States, 

(2) have not been admitted for permanent residence, and 

(3) are not authorized by the Secretary of Homeland Security to work in the 

United States, or are so authorized subject to one or more restrictions, 

so as to include an indication of such lack of authorization to work or such restrictions on such an authorization. 

(b) REPORT.—Not later than 1 year after the date of the enactment of this Act, 

the Commissioner shall report to the Committee on Ways and Means of the House 

of Representatives and the Committee on Finance of the Senate regarding the results of the study undertaken under this section. Such report shall include the Commissioner’s recommendations of feasible options for modifying the social security account number in the manner described in subsection (a). 

TITLE III—ENFORCEMENT 

SEC. 301. NEW CRIMINAL PENALTIES FOR MISUSE OF SOCIAL SECURITY ACCOUNT NUMBERS. 

(a) IN GENERAL.—Section 208(a) of the Social Security Act (42 U.S.C. 408(a)) is 

amended— 

(1) in paragraph (7), by adding after subparagraph (C) the following new subparagraph: 

‘‘(D) with intent to deceive, discloses, sells, or transfers his own social security account number, assigned to him by the Commissioner of Social Security (in the exercise of the Commissioner’s authority under section 

205(c)(2) to establish and maintain records), to any person; or’’; 

(2) in paragraph (8), by adding ‘‘or’’ at the end; and 

(3) by inserting after paragraph (8) the following new paragraphs: 

‘‘(9) without lawful authority, offers, for a fee, to acquire for any individual, 

or to assist in acquiring for any individual, an additional social security account 

number or a number that purports to be a social security account number; or 

‘‘(10) being an officer or employee of any executive, legislative, or judicial 

agency or instrumentality of the Federal Government or of a State or political 

subdivision thereof (or a person acting as an agent of such an agency or instrumentality), willfully acts or fails to act so as to cause a violation of section 

205(c)(2)(C)(xi); or 

‘‘(11) being an officer or employee of any executive, legislative, or judicial 

agency or instrumentality of the Federal Government or of a State or political 

subdivision thereof (or a person acting as an agent of such an agency or instrumentality) in possession of any individual’s social security account number (or 

an officer or employee thereof or a person acting as an agent thereof), willfully 

acts or fails to act so as to cause a violation of clause (vi)(II), (x), (xi), (xii), (xiii), 

or (xiv) of section 205(c)(2)(C); or 

‘‘(12) being a trustee appointed in a case under title 11, United States Code 

(or an officer or employee thereof or a person acting as an agent thereof), willfully acts or fails to act so as to cause a violation of clause (x), (xi), or (xiv) of 

section 205(c)(2)(C);’’. 

(b) EFFECTIVE DATES.—Paragraphs (7)(D) and (9) of section 208(a) of the Social 

Security Act (added by subsection (a)(2)) shall apply with respect to each violation 

occurring after the date of the enactment of this Act. Paragraphs (10), (11), and (12) 

of section 208(a) of such Act (added by subsection (a)(2)) shall apply with respect 

to each violation occurring on or after the effective date applicable with respect to 

such violation under title I. 

SEC. 302. EXTENSION OF CIVIL MONETARY PENALTY AUTHORITY. 

(a) APPLICATION OF CIVIL MONEY PENALTIES TO ELEMENTS OF CRIMINAL VIOLATIONS.—Section 1129(a) of the Social Security Act (42 U.S.C. 1320a–8(a)) is amended— 

(1) by redesignating paragraphs (2) and (3) as paragraphs (4) and (5), respectively; 

(2) by designating the last sentence of paragraph (1) as a new paragraph (2), 

appearing after and below paragraph (1); and 

(3) by inserting after paragraph (2) (as designated under paragraph (2) of this 

subsection) the following: 

‘‘(3) Any person (including an organization, agency, or other entity) who— 

‘‘(A) uses a social security account number that such person knows or should 

know has been assigned by the Commissioner of Social Security (in an exercise 

of authority under section 205(c)(2) to establish and maintain records) on the 

basis of false information furnished to the Commissioner by any person; 

13 

‘‘(B) falsely represents a number to be the social security account number assigned by the Commissioner of Social Security to any individual, when such person knows or should know that such number is not the social security account 

number assigned by the Commissioner to such individual; 

‘‘(C) knowingly alters a social security card issued by the Commissioner of Social Security, or possesses such a card with intent to alter it; 

‘‘(D) knowingly buys or sells a card that is, or purports to be, a card issued 

by the Commissioner of Social Security, or possesses such a card with intent 

to buy or sell it; 

‘‘(E) counterfeits a social security card, or possesses a counterfeit social security card with intent to buy or sell it; 

‘‘(F) discloses, uses, compels the disclosure of, or knowingly sells or purchases 

the social security account number of any person in violation of the laws of the 

United States; 

‘‘(G) with intent to deceive the Commissioner of Social Security as to such 

person’s true identity (or the true identity of any other person), furnishes or 

causes to be furnished false information to the Commissioner with respect to 

any information required by the Commissioner in connection with the establishment and maintenance of the records provided for in section 205(c)(2); 

‘‘(H) without lawful authority, offers, for a fee, to acquire for any individual, 

or to assist in acquiring for any individual, an additional social security account 

number or a number which purports to be a social security account number; 

‘‘(I) with intent to deceive, discloses, sells, or transfers his own social security 

account number, assigned to him by the Commissioner of Social Security under 

section 205(c)(2)(B), to any person; 

‘‘(J) being an officer or employee of any executive, legislative, or judicial agency or instrumentality of the Federal Government or of a State or political subdivision thereof (or a person acting as an agent of such an agency or instrumentality), in possession of any individual’s social security account number, willfully 

acts or fails to act so as to cause a violation of clause (vi)(II), (x), (xi), (xii), (xiii), 

or (xiv) of section 205(c)(2)(C); 

‘‘(K) being a trustee appointed in a case under title 11, United States Code 

(or an officer or employee thereof or a person acting as an agent thereof), willfully acts or fails to act so as to cause a violation of clause (x), (xi), or (xiv) of 

section 205(c)(2)(C); 

‘‘(L) violates section 208A (relating to prohibition of the sale, purchase, or display of the social security account number in the private sector); or 

‘‘(M) violates section 208B (relating to fraud by social security administration 

employees); 

shall be subject to, in addition to any other penalties that may be prescribed by law, 

a civil money penalty of not more than $5,000 for each violation. Such person shall 

also be subject to an assessment, in lieu of damages sustained by the United States 

resulting from such violation, of not more than twice the amount of any benefits or 

payments paid as a result of such violation.’’. 

(b) EFFECTIVE DATES.—The amendments made by this section shall apply with respect to violations committed after the date of the enactment of this Act, except that 

subparagraphs (J), (K), (L), and (M) of section 1129(a)(3) of the Social Security Act 

(added by subsection (a)) shall apply with respect to violations occurring on or after 

the effective date provided in connection with such violations under title I. 

SEC. 303. CRIMINAL PENALTIES FOR EMPLOYEES OF THE SOCIAL SECURITY ADMINISTRATION WHO KNOWINGLY AND FRAUDULENTLY ISSUE SOCIAL SECURITY CARDS OR 

SOCIAL SECURITY ACCOUNT NUMBERS. 

(a) IN GENERAL.—Title II of the Social Security Act (as amended by the preceding 

provisions of this Act) is amended further by inserting after section 208A the following new section: 

‘‘FRAUD BY SOCIAL SECURITY ADMINISTRATION EMPLOYEES

‘‘SEC. 208B. (a) Whoever is an employee of the Social Security Administration and 

knowingly and fraudulently sells or transfers one or more social security account 

numbers or social security cards shall be guilty of a felony and upon conviction 

thereof shall be fined under title 18, United States Code, imprisoned as provided 

in subsection (b), or both. 

‘‘(b) Imprisonment for a violation described in subsection (a) shall be for— 

‘‘(1) not less than 1 year and up to 5 years, in the case of an employee of the Social Security Administration who has fraudulently sold or transferred not more than 

50 social security account numbers or social security cards, 

‘‘(2) not less than 5 years and up to 10 years, in the case of an employee of the 

Social Security Administration who has fraudulently sold or transferred more than 

14 

50, but not more than 100, social security account numbers or social security cards, 

or 

‘‘(3) not less than 10 years and up to 20 years, in the case of an employee of the 

Social Security Administration who has fraudulently sold or transferred more than 

100 social security account numbers or social security cards. 

‘‘(c) For purposes of this section— 

‘‘(1) The term ‘social security employee’ means any State employee of a State 

disability determination service, any officer, employee, or contractor of the Social Security Administration, any employee of such a contractor, or any volunteer providing services or assistance in any facility of the Social Security Administration. 

‘‘(2) The term ‘social security account number’ means a social security account 

number assigned by the Commissioner of Social Security under section 

205(c)(2)(B) or another number that has not been so assigned but is purported 

to have been so assigned. 

‘‘(3) The term ‘social security card’ means a card issued by the Commissioner 

of Social Security under section 205(c)(2)(G), another card which has not been 

so issued but is purported to have been so issued, and banknote paper of the 

type described in section 205(c)(2)(G) prepared for the entry of social security 

account numbers, whether fully completed or not. 

‘‘(d) Any employee of the Social Security Administration who attempts or conspires to commit any violation of this section shall be subject to the same penalties 

as those prescribed for the violation the commission of which was the object of the 

attempt or conspiracy.’’. 

(b) EFFECTIVE DATE.—The amendments made by this section shall apply with respect to violations occurring on or after the date of the enactment of this Act. 

SEC. 304. ENHANCED PENALTIES IN CASES OF TERRORISM, DRUG TRAFFICKING, CRIMES OF 

VIOLENCE, OR PRIOR OFFENSES. 

(a) AMENDMENTS TO TITLE II.—Section 208 of the Social Security Act (42 U.S.C. 

408) is amended— 

(1) in subsection (a), by striking ‘‘shall be fined’’ and all that follows and inserting the following: ‘‘shall be fined, imprisoned, or both, as provided in subsection (b).’’; 

(2) by striking subsection (c); 

(3) by redesignating subsection (b) as subsection (c); and 

(4) by inserting after subsection (a) the following new subsection: 

‘‘(b) A person convicted of a violation described in subsection (a) shall be— 

‘‘(1) fined under title 18, United States Code, or imprisoned for not more than 

5 years, or both, in the case of an initial violation, subject to paragraphs (3) and 

(4), 

‘‘(2) fined under title 18, United States Code, or imprisoned for not more than 

10 years, or both, in the case of a violation which occurs after a prior conviction 

for another offense under subsection (a) becomes final, subject to paragraphs (3) 

and (4), 

‘‘(3) fined under title 18, United States Code, or imprisoned for not more than 

20 years, in the case of a violation which is committed to facilitate a drug trafficking crime (as defined in section 929(a)(2) of title 18, United States Code) or 

in connection with a crime of violence (as defined in section 924(c)(3) of title 18, 

United States Code), subject to paragraph (4), and 

‘‘(4) fined under title 18, United States Code, or imprisoned for not more than 

25 years, in the case of a violation which is committed to facilitate an act of 

international or domestic terrorism (as defined in paragraphs (1) and (5), respectively, of section 2331 of title 18, United States Code).’’. 

(b) AMENDMENTS TO TITLE VIII.—Section 811 of such Act (42 U.S.C. 1011) is 

amended— 

(1) in subsection (a), by striking ‘‘shall be fined’’ and all that follows and inserting ‘‘shall be fined, imprisoned, or both, as provided in subsection (b).’’; 

(2) by redesignating subsection (b) as subsection (c); and 

(3) by inserting after subsection (a) the following new subsection: 

‘‘(b) PUNISHMENT.—A person convicted of a violation described in subsection (a) 

shall be— 

‘‘(1) fined under title 18, United States Code, or imprisoned for not more than 

5 years, or both, in the case of an initial violation, subject to paragraphs (3) and 

(4), 

‘‘(2) fined under title 18, United States Code, or imprisoned for not more than 

10 years, or both, in the case of a violation which occurs after a prior conviction 

for another offense under subsection (a) becomes final, subject to paragraphs (3) 

and (4), 

15 

‘‘(3) fined under title 18, United States Code, or imprisoned for not more than 

20 years, in the case of a violation which is committed to facilitate a drug trafficking crime (as defined in section 929(a)(2) of title 18, United States Code) or 

in connection with a crime of violence (as defined in section 924(c)(3) of title 18, 

United States Code), subject to paragraph (4), and 

‘‘(4) fined under title 18, United States Code, or imprisoned for not more than 

25 years, in the case of a violation which is committed to facilitate an act of 

international or domestic terrorism (as defined in paragraphs (1) and (5), respectively, of section 2331 of title 18, United States Code).’’. 

(c) AMENDMENTS TO TITLE XVI.—Section 1632 of such Act (42 U.S.C. 1383a) is 

amended— 

(1) in subsection (a), by striking ‘‘shall be fined’’ and all that follows and inserting ‘‘shall be fined, imprisoned, or both, as provided in subsection (b).’’; 

(2) by redesignating subsections (b) and (c) as subsections (c) and (d), respectively; and 

(3) by inserting after subsection (a) the following new subsection: 

‘‘(b) A person convicted of a violation described in subsection (a) shall be— 

‘‘(1) fined under title 18, United States Code, or imprisoned for not more than 

5 years, or both, in the case of an initial violation, subject to paragraphs (3) and 

(4), 

‘‘(2) fined under title 18, United States Code, or imprisoned for not more than 

10 years, or both, in the case of a violation which occurs after a prior conviction 

for another offense under subsection (a) becomes final, subject to paragraphs (3) 

and (4), 

‘‘(3) fined under title 18, United States Code, or imprisoned for not more than 

20 years, in the case of a violation which is committed to facilitate a drug trafficking crime (as defined in section 929(a)(2) of title 18, United States Code) or 

in connection with a crime of violence (as defined in section 924(c)(3) of title 18, 

United States Code), subject to paragraph (4), and 

‘‘(4) fined under title 18, United States Code, or imprisoned for not more than 

25 years, in the case of a violation which is committed to facilitate an act of 

international or domestic terrorism (as defined in paragraphs (1) and (5), respectively, of section 2331 of title 18, United States Code).’’. 

(d) EFFECTIVE DATE.—The amendments made by this section shall apply with respect to violations occurring after the date of the enactment of this Act. 

I. INTRODUCTION 

A. PURPOSE AND SUMMARY

The purpose of the ‘‘Social Security Number Privacy and Identity 

Theft Prevention Act of 2004,’’ H.R. 2971, is to enhance Social Security number privacy protections, prevent misuse of Social Security numbers (SSNs), and to otherwise enhance protections against 

identity theft. 

The bill would restrict the sale, purchase and display to the general public of SSNs in the public and private sectors; provide additional measures to protect SSN privacy; ensure SSNs are assigned 

accurately; and create criminal and civil monetary penalties for 

persons who misuse SSNs. 

B. BACKGROUND

The SSN was created in 1936 to track workers’ earnings for the 

purpose of paying Social Security taxes and determining eligibility 

and benefit amounts upon retirement, or later upon disability. 

Since 1936, the Social Security Administration (SSA) has issued 

more than 400 million SSNs. 

Although the SSN was originally created for administering the 

Social Security program, its use has expanded dramatically 

throughout both the public and private sectors. Federal use of the 

SSN was first mandated by President Roosevelt in 1943 with Executive Order 9397. This Executive Order required that any Federal 

16 

department establishing a new system of permanent account numbers pertaining to an individual must exclusively utilize the SSN 

and that such personal information must be kept confidential. 

Today the SSN is required for the administration of a number of 

government benefit programs and the Federal income tax. 

In addition to uses mandated by Federal law, the SSN is also 

widely used in the public and private sectors for purposes that are 

neither required nor prohibited by law. As a result, the SSN is generally regarded as the single-most widely used record identifier by 

both government and private sectors within the United States. 

Ubiquitous use of SSNs and the ease with which individuals can 

access another person’s SSN have raised serious concerns over privacy and opportunities for identity theft and fraud. The Federal 

Trade Commission (FTC), the SSA, the SSA Inspector General and 

others acknowledge that SSNs play a pivotal role in identity theft. 

Even worse, terrorists may steal, fake, or purchase SSNs in order 

to operate in our society and abet their nefarious acts. According 

to an FTC-sponsored survey conducted in March and April 2003, 

nearly 10 million people—or 4.6 percent of the adult population— 

discovered that they were victims of some form of identity theft in 

the past year, and it collectively cost individuals and businesses 

more than $50 billion during that time period. Protecting the privacy of SSNs will help to protect our individual and national security. 

The absence of overarching Federal law regulating the sale, purchase, and display to the general public of SSNs, and the growing 

threat represented by SSN misuse and identity theft, have prompted a need to better protect the privacy and integrity of SSNs. 

C. LEGISLATIVE HISTORY

During the 106th Congress, the Subcommittee held hearings on 

Social Security program integrity on March 30, 2000 (106–38); representative payees on May 4, 2000 (106–57); use and misuse of Social Security numbers on May 9 and May 11, 2000 (106–108); and 

the processing of attorney’s fees on June 14, 2000 (106–70). The information gained from these hearings led to the introduction of 

H.R. 4857, the ‘‘Privacy and Identity Protection Act of 2000’’ on 

July 13, 2000. The bill enhanced privacy protections for individuals, prevented fraudulent misuse of the Social Security number, 

and provided additional safeguards for Social Security and Supplemental Security Income beneficiaries with representative payees. A 

further hearing on protecting privacy and preventing misuse of the 

Social Security number was held on July 17, 2000 (106–43). On 

July 20, 2000, the Subcommittee on Social Security ordered favorably reported H.R. 4857, as amended. The Committee on Ways and 

Means ordered the bill favorably reported, as amended on September 28, 2000 (H. Rept. 106–996 Part 1). The bill was not considered by the full House, as other committees of jurisdiction did not 

complete consideration of the bill. 

During the 107th Congress, the Subcommittee held a hearing on 

protecting privacy and preventing misuse of Social Security numbers on May 22, 2001 (107–31). In response to information gathered at this hearing and previous hearings in the 106th Congress, 

Subcommittee Chairman E. Clay Shaw, Jr., introduced H.R. 2036, 

the ‘‘Social Security Number Privacy and Identity Theft Prevention 

17 

Act of 2001’’ on May 25, 2001. The bill restricted the sale, purchase, and display of Social Security numbers, limited dissemination of Social Security numbers by credit reporting agencies, and 

made it more difficult for businesses to deny services if a customer 

refused to provide his or her Social Security number. Further hearings were held on preventing identity theft by terrorists and criminals, held jointly with the Committee on Financial Services, Subcommittee on Oversight and Investigations on November 8, 2001 

(107–51); protecting the privacy of Social Security numbers and 

preventing identity theft on April 29, 2002 (107–71); and preserving the integrity of Social Security numbers and preventing 

their misuse by terrorists and identity thieves, held jointly with the 

Committee on Judiciary, Subcommittee on Immigration, Border Security, and Claims on September 19, 2002 (107–81). Neither the 

House nor the Senate acted on the bill. 

During the 108th Congress, the Subcommittee held a hearing on 

the use and misuse of Social Security numbers on July 10, 2003 

(108–35). The General Accounting Office (GAO) witness testified 

that SSNs are widely utilized in both the public and private sectors 

as an identifier, and cited numerous examples where public and 

private databases had been compromised and personal data, including SSNs, had been stolen. They also found that in some cases, 

the display of SSNs in public records and easily accessible websites 

provided an opportunity for identity thieves. The SSA Inspector 

General testified that the most important step in preventing SSN 

misuse is to limit its easy availability through public records, sale 

on the open market, and unnecessary use. Consumer advocate witnesses testified regarding the growing crime of identity theft, its 

impact on victims, and the need to protect the privacy of SSNs. A 

law enforcement witness testified that SSNs are key to the takeover of another individual’s identity, described difficulties in prosecuting identity theft, and stated the need to restrict SSN use to 

necessary purposes. 

Based on information gathered at this hearing and hearings in 

previous Congresses, Subcommittee Chairman E. Clay Shaw, Jr. 

introduced H.R. 2971, the ‘‘Social Security Number Privacy and 

Identity Theft Prevention Act of 2003’’ on July 25, 2003. The bill 

was referred to the Committee on Ways and Means, the Committee 

on Financial Services, and the Committee on Energy and Commerce. The Subcommittee held a further hearing on enhancing Social Security number privacy on June 15, 2004, and marked up the 

bill on July 15, 2004. The bill was reported favorably to the full 

Committee on Ways and Means on July 15, 2004, as amended, by 

voice vote. On July 21, 2004, the Committee on Ways and Means 

marked up H.R. 2971, as amended by the Subcommittee. Chairman 

Thomas offered an amendment in the nature of a substitute, which 

was agreed to by voice vote. The Committee then ordered favorably 

reported H.R. 2971, as amended, by a roll call vote of 33 ayes to 

0 nays. 

In addition, during the 106th, 107th, and 108th Congresses, Subcommittee Chairman Shaw asked the GAO for a number of reports 

to inform the debate on SSN privacy and integrity. He requested 

several reports explaining how government agencies and private 

sector businesses such as consumer reporting agencies, information 

resellers, and health care organizations collect, utilize, and safeVerDate Aug 04 2004 00:47 Sep 16, 2004 Jkt 029006 PO 00000 Frm 00017 Fmt 6659 Sfmt 6602 E:\HR\OC\HR685P1.XXX HR685P1
18 

guard SSNs (Social Security, Government and Commercial Use of 

the Social Security Number is Widespread, GAO/HEHS–99–28; Social Security Numbers, Government Benefits from SSN Use But 

Could Provide Better Safeguards, GAO–02–352; Social Security 

Numbers, Private Sector Entities Routinely Obtain and Use SSNs, 

and Laws Limit the Disclosure of This Information, GAO 04–11; 

Social Security Numbers, Use is Widespread and Protections Vary, 

GAO–04–768T). He also requested a report on the Social Security 

Administration’s vulnerabilities to error and fraud in issuing SSNs 

to noncitizens and initiatives to address these vulnerabilities (Social Security Administration, Actions Taken to Strengthen Procedures for Issuing Social Security Numbers to Noncitizens But Some 

Weaknesses Remain, GAO–04–12). 

II. SECTION-BY-SECTION SUMMARY 

Sec. 1. Short title 

CURRENT LAW

No provision. 

EXPLANATION OF PROVISION

Section 1 provides that the Act may be cited as the ‘‘Social Security Number Privacy and Identity Theft Prevention Act of 2004.’’ 

REASON FOR CHANGE

The section identifies the short title for the bill. 

TITLE I—PROVISIONS RELATING TO THE SOCIAL SECURITY 

ACCOUNT NUMBER IN THE PUBLIC AND PRIVATE SECTORS 

Sec. 101. Restrictions on the sale or display to the general public of 

Social Security account numbers by governmental agencies 

CURRENT LAW

The SSN is required by law for the administration of a number 

of Federal programs. In addition, Federal law permits States to require the SSN in the administration of certain State programs, and 

in other cases Federal law requires the States to use the SSN in 

the administration of Federal or State programs. No Federal law 

regulates the overall use of SSNs by Federal, State or local governments. The ‘‘Department of Transportation and Related Agencies 

Appropriations Act’’ (P.L. 106–346) amended the ‘‘Driver’s Privacy 

Protection Act of 1994’’ (P.L. 103–322) to require States to obtain 

express consent of drivers before sharing or selling drivers’ ‘‘highly 

restricted personal information,’’ including SSNs, except under very 

limited circumstances. 

EXPLANATION OF PROVISION

The bill would restrict the sale or display to the general public 

of full or partial SSNs by Federal, State or local governmental 

agencies and their agents, or by a bankruptcy trustee. The sale of 

SSNs would be permitted as follows: 

1. As specifically authorized by the ‘‘Social Security Act’’ 

(P.L. 74–271); 

19 

2. For law enforcement or national security purposes; 

3. for tax complliance; 

4. By State departments of motor vehicles for use by a government agency in carrying out its functions; for use by an insurer for claims investigation, anti-fraud activities, and rating 

or underwriting; and for use by an employer to obtain or verify 

information about a holder of a commercial driver’s license; 

5. To a consumer reporting agency under the ‘‘Fair Credit 

Reporting Act’’ (FCRA) (P.L. 91–508) solely for use or disclosure for permissible purposes under the FCRA as follows: as 

ordered by a court or a Federal grand jury subpoena; as instructed by the consumer in writing; for the extension of credit 

based on a consumer’s application; for review or collection of a 

consumer’s account; for employment purposes (with the consumer’s permission); for insurance underwriting based on a 

consumer’s application; when there is a legitimate business 

need to process a transaction the consumer initiates; to review 

whether a customer meets the terms of his or her account; to 

determine a consumer’s eligibility for a license or other benefit 

granted by a government agency; to analyze the credit or prepayment risks associated with an existing credit obligation; 

and for use by State and local officials for child support payment purposes; 

6. For government research advancing the public good. 

In addition, the U.S. Attorney General would be permitted to authorize sale and display to the general public of SSNs in other circumstances as determined appropriate. 

The restrictions on sale or display to the general public of SSNs 

would not apply to SSNs of deceased persons. 

The restrictions that would be established under this provision 

would not override other restrictions or limitations in Federal law 

or regulations to the extent that current law provides greater protections for SSNs than would be created under this provision in the 

bill. 

The bill would define ‘‘sell’’ as accepting an item of material 

value in exchange for an SSN. ‘‘Display to the general public’’ 

would mean to intentionally place an SSN in a viewable manner 

on an Internet site that is available to the general public or to provide access to the general public by other means. In addition, requiring an individual to transmit his or her SSN over the Internet 

without ensuring the number is encrypted or otherwise protected 

would be considered a prohibited display to the general public. ‘‘Social Security account number’’ would include a partial SSN, except 

for the last 4 digits for a period of 6 years after the deadline to 

issue regulations implementing the provisions. 

REASON FOR CHANGE

The government created the SSN and requires its use for a broad 

range of interactions between individuals and the government, including tax administration, many benefit programs, and driver’s 

and professional licenses. While there are laws protecting the privacy of SSNs held by certain agencies or under specific circumstances, there is no comprehensive law protecting the privacy 

of SSNs held by Federal, State, and local government agencies. As 

a result, SSNs may be sold, displayed on the Internet, or otherwise 

20 

made available to the general public on paper, computer disk, or 

other means to individuals requesting a copy—for example through 

open court or other government records—and may be obtained by 

third parties who can subsequently sell or display the information 

to others. 

Since SSNs are the key to accessing an individual’s financial and 

other personal information, the wide accessibility of SSNs has 

raised serious concerns over privacy. Testimony before the Subcommittee on Social Security highlights the relative ease by which 

an individual can obtain another person’s SSN and use the information to commit identity theft or other crimes. Restricting the display to the general public and sale of SSNs by governments will 

help curb fraudulent activity by making it more difficult for criminals to access this personal information. 

The bill would provide specific exceptions to permit the continuation of SSN exchanges that provide important benefits in the public interest—such as law enforcement (including child support enforcement); administration of government programs, including Supplemental Security Income, Medicaid, and unemployment insurance; limited commercial purposes such as granting credit and insurance; tax administration; and government research advancing 

the public good. In addition, authority would be given to the U.S. 

Attorney General to authorize sale and display to the general public of SSNs as determined appropriate under guidelines specified in 

Section 102 of the bill. Since SSN use is so pervasive in both the 

public and private sector, is linked to so many government and 

business transactions, and because of evolving needs regarding 

SSN utilization and new technologies to facilitate information exchanges, this exception is intended to allow the U.S. Attorney General or agencies to which it delegates authority to thoroughly 

evaluate how SSNs are sold and displayed, the degree to which 

they are convenient versus essential to such exchanges, and to 

modify the rules as needed. However, it is expected that this authority would be used extremely judiciously, and not merely for the 

sake of facilitating transactions or data-matching that could be reasonably accomplished without the use of the SSN. In comparing the 

costs and benefits of authorizing SSN sale or display to the general 

public, it is expected that the U.S. Attorney General and other 

agencies would give significant weight to the need to maintain individuals’ privacy and safety, as well as the bill’s purpose of preventing identity theft. 

With respect to the exception for research advancing the public 

good, the intent is to preserve the government’s ability to conduct 

scientific, epidemiological, and social scientific research that would 

benefit the public. In the case of research involving medical information on individuals, it is expected that the SSA and the U.S. Attorney General will only authorize sale of SSNs in strict compliance 

with Federal rules and regulations on the privacy of medical information. 

The restrictions on sale and display to the general public of SSNs 

would not apply to the SSNs of deceased persons. This is because 

the sale and public availability of information on deceased individuals is necessary to prevent waste, fraud, and abuse. The SSA compiles a Death Master File (DMF), which contains the name, date 

of birth, date of death, SSN, and other information for about 70 

21 

million individuals. The SSA DMF is used by leading government, 

financial, investigative, and credit reporting organizations, in medical research and by other industries to verify identity as well as 

to prevent fraud and comply with the ‘‘Uniting and Strengthening 

America by Providing Appropriate Tools Required to Intercept and 

Obstruct Terrorism Act of 2001’’ (USA PATRIOT Act) (P.L. 107– 

56). 

The restrictions on sale and display by government agencies, 

trustees, and their agents would only apply to SSNs they require 

individuals or others to provide. During Social Security Subcommittee hearings on the bill, court and other public records administrators testified they receive numerous documents filed by individuals, businesses, and attorneys that often include SSNs the 

government did not require to be submitted, and of which they are 

therefore unaware. They stated redaction of ‘‘incidentally’’ included 

SSNs would create a serious administrative burden, and it would 

require significant resources to review each document and redact 

such incidental SSNs. Therefore, the bill would make government 

agencies, trustees, and their agents responsible only for those SSNs 

they require individuals to submit, since they should be able to easily locate and redact them. For example, a court requiring individuals to provide their SSNs on a coversheet for filed documents 

could remove the coversheet or redact the SSN before selling the 

court record or displaying it to the general public. With respect to 

SSNs submitted in court documents absent the court’s requirement 

to do so, the individual communicating the SSN in the document, 

not the court, would be held responsible according to Section 108 

of the bill. 

The restrictions established under this bill would serve as a floor 

of protection for SSNs, and are not intended to override SSN protections in current Federal law or regulations to the extent they 

provide greater restrictions on SSN sale, purchase, or display to 

the general public than would be created under the bill. For example, this bill is not intended to circumvent the provision included 

in the ‘‘Food, Agriculture, Conservation, and Trade Act of 1990,’’ 

(P.L. 101–624) preventing the disclosure of SSNs maintained as the 

result of laws enacted on or after October 1, 1990. 

EFFECTIVE DATE

Final regulations to carry out the new restrictions on SSN sale 

and display to the general public created in this section of the bill 

would have to be issued by the Commissioner of Social Security 

(hereafter referred to as the Commissioner), the U.S. Attorney General, or any other agency to which the U.S. Attorney General delegates authority within 18 calendar months after the date of enactment. The provisions would take effect one year after issuance of 

regulations. The provisions would not apply to records generated 

prior to the date the provisions become effective. 

Sec. 102. Regulatory authority 

CURRENT LAW

No provision in current law. 

22 

EXPLANATION OF PROVISION

The bill would direct the U.S. Attorney General to issue regulations regarding the sale, purchase, or display to the general public 

of SSNs and to provide an opportunity for public comment on regulations in accordance with the ‘‘Administrative Procedure Act’’ (P.L. 

79–404). The U.S. Attorney General would be required to consult 

with the Commissioner, the Secretary of Health and Human Services the Secretary of Homeland Security, the Secretary of the 

Treasury, the Federal Trade Commission, the Comptroller of the 

Currency, the Director of the Office of Thrift Supervision, the 

Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Securities and Exchange Commission, State attorneys 

general and representatives of the State insurance commissioners 

as designated by the National Association of Insurance Commissioners. 

When authorizing the sale, purchase, or display of SSNs for law 

enforcement or national security purposes, the U.S. Attorney General would be required to find that the sale, purchase or display 

would serve a compelling public interest that cannot reasonably be 

served through alternative measures, and would not pose an unreasonable risk of identity theft, or harm to an individual. 

The U.S. Attorney General would be able to authorize the sale, 

purchase, or display to the general public of SSNs for purposes 

other than law enforcement or national security, only after considering the costs and benefits to the general public, businesses, commercial enterprises, non-profit associations, and governments. If 

the U.S. Attorney General authorizes the sale, purchase, or display 

to the general public of SSNs, he or she would be required to impose restrictions and conditions to reduce the likelihood of fraud 

and crime and to prevent an unreasonable risk of identity theft or 

bodily, emotional or financial harm to individuals. 

REASON FOR CHANGE

The SSN is widely used throughout the public and private sectors. Some uses are authorized or required under law, others are 

to facilitate data-matching and record-keeping, and still others are 

simply for convenience’s sake. The development of coordinated regulations regarding SSN sale, purchase, and display across such diverse agencies and businesses makes it necessary to centralize regulatory authority with the SSA (which is responsible for issuing 

SSNs) and the U.S. Attorney General (which enforces criminal penalties with respect to SSN misuse under current law). In addition, 

the U.S. Attorney General would have authority to delegate rulemaking to other Federal agencies as appropriate, and would facilitate coordinated and consistent rulemaking. 

In addition, to address concerns that the limited list of exceptions 

does not enumerate all instances in which the sale, purchase, and 

display of SSNs may be essential and irreplaceable for government 

and business transactions, the U.S. Attorney General would be 

given authority to authorize the sale, purchase or display to the 

general public of SSNs. The legislation provides guidelines to ensure SSNs are exchanged only when there is no other alternative 

that could reasonably accomplish the objective, and with due conVerDate Aug 04 2004 00:47 Sep 16, 2004 Jkt 029006 PO 00000 Frm 00022 Fmt 6659 Sfmt 6602 E:\HR\OC\HR685P1.XXX HR685P1
23 

sideration for the unintended and potentially harmful consequences 

to individuals, government agencies, and businesses that may result. 

EFFECTIVE DATE

The regulatory authority would be effective upon enactment. 

Sec. 103. Prohibition of display of Social Security account numbers 

on checks issued for payment by governmental agencies 

CURRENT LAW

No Federal law regulates the overall use of SSNs by Federal, 

State, or local governments. However, the ‘‘Social Security Number 

Confidentiality Act of 2000’’ ( P.L. 106–433) specifically directed the 

Secretary of the Treasury to take necessary action to ensure that 

SSNs are not visible on or through unopened mailings of checks or 

other drafts. 

EXPLANATION OF PROVISION

The bill would prohibit Federal, State, or local governments, or 

bankruptcy trustees, from including full or partial SSNs on checks 

issued for payment or on any documents accompanying checks. 

REASON FOR CHANGE

The Subcommittee has heard testimony from the Postal Inspection Service and consumer advocates that mail theft and rifling 

through trash for discarded documents are means by which identity thieves gain access to personal information, including SSNs. 

EFFECTIVE DATE

Would apply with respect to checks (and documents attached to 

or accompanying such checks) issued after one year after enactment. 

Sec. 104. Prohibition of the display of Social Security account numbers on driver’s licenses or motor vehicle registrations 

CURRENT LAW

Many States have acted voluntarily to prohibit the display of 

SSNs on driver’s licenses or other identification cards; however 

some States have made changing from an SSN to another number 

an option, but not a requirement. 

EXPLANATION OF PROVISION

The bill would prohibit States and their political subdivisions 

from placing a person’s full or partial SSN on a driver’s license, 

motor vehicle registration, or on any other document issued for 

purposes of identification of an individual. This would include use 

of a magnetic strip, bar code, or other means of communication to 

convey the full or partial SSN. 

REASON FOR CHANGE

The Subcommittee has heard testimony that loss or theft of driver’s licenses or motor vehicle registrations that display the SSN 

24 

contributes to identity theft. In addition, identity thieves may obtain bar code readers or other equipment that enables them to access SSNs that are stored in magnetic strips, bar codes, or smart 

chips on driver’s licenses. However, this provision is not intended 

to prevent inclusion of encrypted SSNs (those that are transformed 

by a secret code to appear as other than the nine-digit number assigned by the Commissioner of Social Security when read or otherwise accessed by unauthorized parties). 

EFFECTIVE DATE

Would apply to licenses, registrations, and other documents 

issued or reissued after one year after enactment. 

Sec. 105. Prohibition of the display of Personal Identification Numbers on government employee identification cards or tags 

CURRENT LAW

No provision. 

EXPLANATION OF PROVISION

The bill would prohibit government agencies and those providing 

employee benefits for the government agency from displaying an 

individual’s full or partial SSN on any identification card or tag 

issued to the employee or an employee’s family member. This 

would include use of a magnetic strip, bar code, or other means of 

communication to convey the full or partial SSN. 

REASON FOR CHANGE

SSNs are often utilized as employee identification numbers or 

customer account numbers for the sake of convenience. However, 

the display of SSNs on military identification tags, employee identification cards, health benefit cards, customer cards, and on other 

cards or tags that are required to be submitted or displayed to others unnecessarily increases the risk of identity theft. Similar prohibitions have been enacted under several State laws. However, this 

provision is not intended to prevent inclusion of encrypted SSNs 

(those that are transformed by a secret code to appear as other 

than the nine-digit number assigned by the Commissioner of Social 

Security when read or otherwise accessed by unauthorized parties). 

EFFECTIVE DATE

Would apply with respect to cards or tags issued after one year 

after enactment. 

Sec. 106. Prohibition of inmate access to Social Security account 

numbers 

CURRENT LAW

No provision. 

EXPLANATION OF PROVISION

The bill would prohibit Federal, State or local governments from 

employing prisoners in any capacity that would allow prisoners access to the SSNs of other individuals. 

25 

REASON FOR CHANGE

Prisoners, including those who may have been incarcerated for 

identity theft, should not have access to SSNs, thereby posing a serious risk of identity theft or fraud. The Subcommittee has heard 

testimony regarding a serious instance where use of prisoner labor 

to process personal information resulted in a case of stalking (Beverly Dennis, et al. v. Metromail, et al., No. 96–04451, Travis County, Texas). 

EFFECTIVE DATE

Would apply with respect to employment or entry into contract 

for employment of prisoners on or after enactment. In the case of 

employment or contracts for employment in effect on the date of 

enactment, the prohibition would take effect 90 days after enactment. 

Sec. 107. Measures to preclude unauthorized disclosure of Social Security account numbers and protect the confidentiality of such 

numbers 

CURRENT LAW

No provision. 

EXPLANATION OF PROVISION

With respect to Federal, State, and local government employees, 

the bill would restrict access to SSNs to employees whose responsibilities require access for administration or enforcement of the 

government agency’s functions. Government agencies would be required to provide safeguards to prevent unauthorized access to 

SSNs and protect their confidentiality. 

REASON FOR CHANGE

There have been numerous reported cases of computer hackers 

obtaining SSNs from universities and other institutions. In addition, the Subcommittee has heard testimony on how identity theft 

rings may plant an employee inside an organization to access SSNs 

and personal information. 

Government agencies often ask or require individuals to provide 

their SSN to obtain benefits or services. Therefore, they have a responsibility to safeguard SSNs from unauthorized access by employees or other individuals. 

This provision is not intended to prevent government employees 

or those to whom government agencies contract work from accessing SSNs in cases where it is necessary for performance of their 

duties, or to impede data exchanges between government agencies 

that include SSN information and are in accordance with Section 

101 of the bill. For example, it is not the intent to prevent State 

unemployment insurance agencies from sending wage records or 

claim information to other Federal, State, or local government 

agencies (e.g. for purposes of determining eligibility or benefit 

amounts for Temporary Assistance to Needy Families, Housing and 

Urban Development assistance, Food Stamps, Supplemental Security Income, etc.). 

26 

EFFECTIVE DATE

Would take effect one year after the date of enactment. 

Sec. 108. Prohibition of the sale, purchase, and display to the general public of the Social Security account number in the private 

sector 

CURRENT LAW

The Gramm-Leach-Bliley Act (GLBA)(P.L. 106–102) restricts the 

ability of financial institutions to disclose nonpublic personal information about consumers, including SSNs, to nonaffiliated third 

parties. The ‘‘Health Insurance Portability and Accountability Act’’ 

(HIPAA) (P.L. 104–191) Privacy Rule limits health plans, health 

care clearinghouses, and health care providers in disclosing certain 

protected information, including SSNs. Individuals must give specific authorization before health care providers and other covered 

entities may disclose protected information in most non-routine circumstances. However, no Federal law regulates the overall sale, 

purchase, and display to the general public of SSNs in the private 

sector. 

EXPLANATION OF PROVISION

The bill would prohibit the sale, purchase or display to the general public of an SSN. It also prohibits using an SSN to find an 

individual with the intent to injure or harm the individual, or 

using the individual’s identity for illegal purposes. 

A person who violates this section would be guilty of a felony, 

subject to fines under Title 18 of the United States Code and/or imprisonment for up to five years. 

The bill would provide exceptions to the prohibitions on SSN sale 

and purchase for law enforcement; national security; public health; 

emergency health safety; tax compliance; by or to a consumer reporting agency for use or disclosure for permissible purposes described in the Fair Credit Reporting Act; and research (for advancing the public good and with restrictions to protect privacy of individuals). 

The bill would also provide exceptions for sale, purchase, and display to the general public of SSNs with the affirmative written consent of the individual, and under other circumstances determined 

appropriate according to regulations issued by the U.S. Attorney 

General. 

These prohibitions would not apply to SSNs of deceased persons. 

The bill would also prohibit disclosure of the SSN to government 

agencies absent a request to do so or the individual’s written permission, except for law enforcement (including child support enforcement) or national security purposes. 

In addition, the bill would prohibit the display of full or partial 

SSNs on employee identification cards or tags, or cards or tags 

businesses and others require individuals to use to access goods 

and services. 

The bill would require businesses and others that collect and 

store SSNs to prevent unauthorized access by employees or other 

individuals. 

27 

The restrictions that would be established under this provision 

would not override other restrictions or limitations in Federal law 

to the extent that current law provides greater protections for 

SSNs than would be created under this provision in the bill. 

The bill would define ‘‘sell’’ as obtaining directly or indirectly 

anything of value in exchange for the SSN. ‘‘Purchase’’ would mean 

to provide, directly or indirectly, anything of value in exchange for 

the SSN. The terms ‘‘sell’’ and ‘‘purchase’’ would not include submission of the SSN when applying for government benefits or programs, use of SSNs in administration of employee benefit plans, or 

the sale, lease, merger, transfer, or exchange of a trade or business. 

‘‘Display to the general public’’ would mean to intentionally place 

an SSN in a viewable manner on an Internet site that is available 

to the general public or to provide access to the general public by 

other means. In addition, requiring an individual to transmit his 

or her SSN over the Internet without ensuring the number is 

encrypted or otherwise protected would be considered a prohibited 

display to the general public. 

‘‘Social Security account number’’ would include a partial SSN, 

except for the last 4 digits for a period of 6 years after the deadline 

to issue regulations to implement the provisions. 

REASON FOR CHANGE

Use of SSNs in the private sector has proliferated for purposes 

unrelated to administration of the Social Security program, collection of taxes, or other purposes authorized under Federal law. 

Businesses may request a person’s SSN as a condition of providing 

goods or services. Information resellers and consumer reporting 

agencies obtain SSNs and other personal information from customers, public records, and other sources to determine an individual’s identity and accumulate information about them in order to 

provide that information to businesses or others for a fee. As a result, Americans are increasingly concerned that the SSN they disclose for one purpose may be subsequently sold to third parties and 

used for other purposes without their knowledge or consent. For example, an individual discloses his SSN to get a bank loan. The 

bank sends the information to a consumer reporting agency to request a credit report. The consumer reporting agency assembles information on the individual and associates it with the SSN. The 

consumer reporting agency may then incidentally or purposefully 

sell the SSN and other information to insurance companies, credit 

companies, information resellers, law enforcement, government 

agencies, private investigators, and others. 

In addition, such widespread use of SSNs increases the risk that 

business employees, computer hackers, or others may obtain unauthorized access and misuse SSNs to commit identity theft or other 

crimes. According to an FTC-sponsored survey in 2003, among 

identity theft victims who knew the identity of the criminal, 23 percent said the person responsible worked at a company or financial 

institution that had access to the victim’s personal information. 

The bill would restrict the sale, purchase, and display to the general public of SSNs (examples of display to the general public, in 

addition to display over the Internet, would include making copies 

of SSNs available on paper, computer disk, or other media). The 

bill would also require that SSNs be appropriately safeguarded 

28 

when collected and stored. The intent is to limit transmission of 

SSNs in order to minimize opportunities for SSN misuse and identity theft. 

In limiting the transmission of SSNs, it is not the intent to prevent individuals from voluntarily providing their own SSN to facilitate a transaction that they initiate or to prevent businesses from 

utilizing SSNs in a transaction that the individual authorizes. For 

example, if an individual voluntarily gives his or her own SSN to 

a business so that it may provide goods or services, is not the intent of the bill to call such an exchange the ‘‘sale’’ or ‘‘purchase’’ 

of the SSN simply because it is facilitating the transaction. 

In addition, during the course of the Subcommittee’s consideration of the bill, the Federal Deposit Insurance Corporation (FDIC) 

expressed concern that the bill’s restrictions on sale and purchase 

of SSNs could be interpreted to impede the FDIC’s resolution or 

liquidation of failed insured depository institutions. However, the 

bill’s language clarifying that ‘‘sell’’ or ‘‘purchase’’ does not include 

the sale, lease, merger, transfer, or exchange of a trade or business 

is intended to make clear that the FDIC may share SSNs in carrying out its responsibilities. 

The bill would provide specific exceptions to the restrictions on 

sale and purchase of SSNs for law enforcement; national security; 

emergency health situations; public health; compliance with tax 

laws; for certain credit, insurance, and employment purposes; and 

research for advancing the public good. The bill would provide exceptions to restrictions on sale, purchase, and display to the general public of SSNs with the individual’s voluntary and affirmative 

consent and under circumstances deemed appropriate by the U.S. 

Attorney General. 

With respect to the exception for research advancing the public 

good, the intent is to preserve the government’s ability to conduct 

scientific, epidemiological, and social scientific research that would 

benefit the public. It is not intended to facilitate private commercial research for product or service development or marketing. In 

the case of not-for-profit or other research advancing the public 

good, the U.S. Attorney General would have the ability to authorize 

SSN sale and purchase where appropriate in accordance with Section 102 of the bill. In the case of research involving medical information on individuals, it is expected that the SSA and the U.S. Attorney General will only authorize sale of SSNs in strict compliance 

with Federal rules and regulations on the privacy of medical information. 

With respect to the exception for affirmative written consent of 

the individual, the intent is to enable individuals to authorize the 

sale, purchase, and display to the general public of their own SSNs 

if they determine it is in their own best interest. For example, an 

individual may choose to provide his or her SSN to a business and 

authorize the SSN’s sale in order to speed up a transaction. Businesses and others soliciting such consent from the individual must 

explain clearly and understandably what giving consent would entail and the uses that might be made of the individual’s SSN. Preferably, the explanation and solicitation of consent would be a distinct document or other communication separate from other explanations or solicitations from the business or other persons. The 

terms of consent, and the explanation of the right to refuse consent 

29 

or to limit the SSN’s exchange solely to a specific transaction, 

should not be obscured by other explanations, authorizations, solicitations or other text that might be included in the same document. No individual should be obligated to provide consent; however, businesses and others may provide an explanation of the advantages and disadvantages (with equal prominence given to both) 

of providing versus refusing consent. 

With respect to the exception permitting the U.S. Attorney General to authorize SSN sale, purchase, and display to the general 

public, for the same reasons discussed under Section 101, the expectation is that this authority would be used extremely judiciously 

and only when there are no other reasonable alternative measures 

that could attain the same objective. 

For the same reasons discussed under Section 105, the bill would 

prevent private sector employers and those providing employee 

benefits from displaying an individual’s full or partial SSN on any 

identification card or tag issued to the employee or an employee’s 

family member. In addition, the bill would prevent businesses from 

displaying full or partial SSNs on cards or tags used to access 

goods and services. Individuals who must carry such cards and tags 

with their SSNs are at greater risk of identity theft should their 

wallets or purses be stolen or lost. According to an FTC-sponsored 

survey, 14 percent of identity theft victims said their personal information was obtained from a lost or stolen wallet, or checkbook. 

Section 101 of the bill would prohibit government agencies from 

selling or displaying to the general public SSNs they require individuals to disclose to the government. However, many of the SSNs 

that appear in government records, particularly court records, result from attorneys, title companies, or other businesses and individuals including a person’s SSN on papers submitted to the court 

for convenience’s sake. Government agencies do not have the resources to comb through innumerable documents searching for 

such ‘‘incidental’’ inclusion of SSNs. As a result, an individual’s 

SSN could be displayed to the public without the individual realizing it. Therefore, to prevent inadvertent sale or display of SSNs 

by government agencies, the bill would prohibit the submission of 

the SSN to government agencies absent the government agency’s 

requiring that the number be submitted or the individual’s written 

consent. 

The restrictions on private sector sale, purchase, and display to 

the general public of SSNs would not apply to the SSNs of deceased persons. This is because the sale and public availability of 

information on deceased individuals is necessary to prevent fraud. 

As mentioned in the discussion under Section 101, the SSA DMF 

is used by both public and private sector entities to prevent fraud 

and comply with the USA PATRIOT Act. By methodically running 

financial, credit, payment and other applications against the DMF, 

the financial community, insurance companies, security firms and 

State and local governments are better able to identify and prevent 

identity fraud. The USA PATRIOT Act requires an effort to verify 

the identity of customers, including procedures to verify customer 

identity and maintaining records of information used to verify identity. 

As discussed under Section 101, this bill is intended to serve as 

a floor of protection for SSNs and is not intended to override SSN 

30 

protections in current Federal law or regulations to the extent they 

provide greater restrictions. For example, this bill is not intended 

to enable SSN sale, purchase, or display to the general public by 

health providers that would otherwise be prohibited under the 

HIPAA Privacy Rule. 

EFFECTIVE DATE

Final regulations to carry out the new restrictions on SSN sale, 

purchase, and display to the general public created in this section 

of the bill would have to be issued by the Commissioner, the U.S. 

Attorney General, or any other agency to which the U.S. Attorney 

General delegates authority within 18 calendar months after the 

date of enactment. The provisions would take effect one year after 

issuance of regulations. 

Sec. 109. Confidential treatment of Credit Header information 

CURRENT LAW

The Fair Credit Reporting Act (FCRA) imposes certain restrictions on the disclosure of ‘‘consumer report’’ information. However, 

information at the top of the credit report, known as ‘‘credit header’’ information, which includes SSNs, is not subject to these restrictions. The GLBA imposed some restrictions on release of credit 

header information, but the exceptions under which SSNs may be 

released under the GLBA are broader than the permissible purposes for which a consumer report may be released. 

EXPLANATION OF PROVISION

The bill would include the SSN in the definition of ‘‘credit report’’ 

under the FCRA so that the SSN receives the same privacy protections as other consumer credit information. 

REASON FOR CHANGE

Consumer reporting agencies compile information on individuals’ 

credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living. This 

highly personal information may be released only for purposes 

specified in the FCRA, such as credit issuance, insurance, employment, review of consumer accounts, certain government licenses or 

benefits, child support determinations, and other business transactions. 

SSNs are the key to accessing information in a credit report, and 

deserve the same protection as the information itself. While the 

GLBA affords SSNs some protections, consumer reporting agencies 

may sell credit header information, including the SSN, for purposes 

beyond those permitted under the FCRA for credit reports or for 

a purpose beyond that for which the SSN was provided, thus increasing the risk SSNs will be used for identity theft or other 

crimes. 

EFFECTIVE DATE

Would take effect 90 days after enactment. 

31 

Sec. 110. Refusal to do business without receipt of Social Security 

account number considered unfair or deceptive act or practice 

CURRENT LAW

No provision. 

EXPLANATION OF PROVISION

The bill would make it an unfair or deceptive act or practice in 

violation of the Federal Trade Commission Act (15 U.S.C. §45) for 

any person to refuse to do business with an individual because the 

individual will not provide his or her SSN. An exception is provided 

where the SSN is expressly required under Federal law. 

REASON FOR CHANGE

Businesses may currently request a customer’s SSN without 

being required to collect it under current law. They may also refuse 

to provide goods or services if the customer refuses to provide it. 

Once a business obtains a customer’s SSN, there may be little or 

no oversight or regulation over how that business uses or shares 

that key piece of personal information, depending on the type of 

business. 

The FTC, the SSA, and others warn individuals to avoid supplying an SSN and ask businesses to use another number whenever possible. Such warnings are justified, as the Subcommittee 

has heard testimony discussing identity theft abetted by unauthorized access to personal information by business employees. 

EFFECTIVE DATE

Would apply to acts or practices committed after 180 days after 

enactment. 

TITLE II—MEASURES TO ENSURE THE INTEGRITY OF APPLICATIONS FOR SOCIAL SECURITY ACCOUNT NUMBERS 

AND REPLACEMENT SOCIAL SECURITY CARDS 

Sec. 201. Independent verification of birth records provided in support of applications for Social Security account numbers 

CURRENT LAW

Section 205(c)(2)(B)(ii) of the Social Security Act directs the Commissioner to require persons applying for an SSN to provide documentary evidence necessary to establish the individual’s age, true 

identity, U.S. citizenship or lawful alien status, and any previously 

assigned SSNs. Section 205(c)(2)(A) of the Social Security Act specifies that information obtained by or submitted to the Commissioner 

shall be subject to verification as the Commissioner deems necessary. 

As of 2002, SSA policy requires field office staff to obtain independent third-party verification of birth records for U.S.-born citizens age one and older. SSA policy does not require independent 

verification of birth records for children under age one (in such 

cases birth records are subject to visual inspection only). 

In addition, SSA policy requires independent third-party 

verification of the immigration and work status of non-citizens before issuing an SSN. 

32 

EXPLANATION OF PROVISION

The bill would direct the Commissioner to require independent 

verification of birth records provided by individuals applying for an 

SSN, except in cases of enumeration at birth. The bill would authorize the Commissioner to issue regulations to provide reasonable exceptions to this requirement in cases where the Commissioner determines there is minimal opportunity for fraud. 

In addition, the bill would require the Commissioner to undertake a study to determine the feasibility and cost effectiveness of 

verifying all identification documents submitted by persons applying for a replacement Social Security card, including the feasibility 

and cost of developing electronic processes for third party 

verification of documents issued by Federal, State and local agencies. 

REASON FOR CHANGE

In testimony before the Subcommittee, the General Accounting 

Office (GAO) stated that the SSA’s policies related to assigning 

SSNs to children under age one could be exploited by individuals 

seeking fraudulent SSNs. GAO investigators working undercover 

were able to obtain two SSNs by posing as parents of newborns 

and using counterfeit documents. 

Audits and testimony by the SSA Inspector General also identified the assignment of SSNs to children as prone to fraud. In a 

2000 audit, the SSA Inspector General reviewed over 3,500 original 

SSNs issued, and found 999 (28 percent) were assigned based on 

invalid or unacceptable documents. Of those, 56 SSN cards were 

issued to non-existent children. 

EFFECTIVE DATE

The provision requiring independent verification of birth records 

for newly issued SSNs would take effect with regard to applications 

for SSNs filed after 270 days after the date of enactment. The Commissioner would be required to report the results of the study on 

requiring verification of all identification documents for replacement SSN cards no later than two years after enactment. 

Sec. 202. Enumeration at birth 

CURRENT LAW

In States where the SSA has entered into an agreement, parents 

may request that the SSA assign an SSN to a newborn child as 

part of the official birth registration process (the parent need not 

fill out an SSN application form). In such cases, the State vital statistics office electronically transmits the request along with the 

child’s name, date and place of birth, sex, mother’s maiden name, 

father’s name (if shown), address of the mother and birth certificate number to the SSA’s central office in Baltimore. The SSA uses 

the birth registration information to establish the age, identity, and 

U.S. citizenship of the newborn child. The SSA then assigns an 

SSN to the child and sends the SSN card to the child at the mother’s address. 

33 

EXPLANATION OF PROVISION

The bill would require the Commissioner to make improvements 

to the application process for SSNs issued to newborns. Specifically, the improvements would be designed to prevent (a) assignment of SSNs to unnamed children; (b) issuance of more than one 

SSN to the same child; and (c) other opportunities for obtaining an 

SSN fraudulently. 

In addition, the bill would require the Commissioner to undertake a study to determine options for improving the enumeration 

at birth process, including an examination of methods available to 

reconcile hospital birth records with birth registrations submitted 

to State and local government agencies and information provided 

to the SSA. 

REASON FOR CHANGE

Nearly 4 million SSNs (more than 70 percent of new SSNs) were 

issued through the enumeration at birth (EAB) program in fiscal 

year 2003. However, a 2001 audit by the SSA Inspector General 

found several weaknesses in the EAB program. The SSA Inspector 

General found that the SSA was vulnerable to potential error or 

fraud due to lack of segregation of duties within hospitals’ birth 

registration units and found instances where multiple SSNs were 

issued to a child or where SSNs were issued to unnamed children 

(e.g., with name listed as ‘‘Baby’’ or ‘‘Infant’’). 

The SSA Inspector General recommended that the SSA perform 

periodic independent reconciliations of registered births with statistics obtained from the hospitals’ labor and delivery units and periodically verify the legitimacy of a sample of birth records obtained 

from hospitals. The SSA Inspector General also recommended enhancement of routines to prevent assignment of multiple SSNs, additional training for SSA personnel, and continued monitoring and 

improvement of the timeliness of Bureau of Vital Statistics submissions. 

EFFECTIVE DATE

The Commissioner would be required to report to Congress on 

the extent to which such improvements have been made no later 

than one year after enactment. 

The Commissioner would be required to report the results of the 

study to the House Committee on Ways and Means and the Senate 

Committee on Finance no later than 18 months after enactment. 

Sec. 203. Study relating to use of photographic identification in connection with applications for benefits, Social Security account 

numbers, and Social Security cards 

CURRENT LAW

Individuals must submit proof of age, U.S. citizenship or lawful 

alien status, and identity when applying for an SSN or Social Security benefits (additional evidence is required for benefit applications). Persons applying for a replacement SSN card must submit 

proof of identity and may be required to submit proof of age and 

U.S. citizenship or lawful alien status. An in-person interview is reVerDate Aug 04 2004 00:47 Sep 16, 2004 Jkt 029006 PO 00000 Frm 00033 Fmt 6659 Sfmt 6602 E:\HR\OC\HR685P1.XXX HR685P1
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quired for SSN applicants age 12 and older and may be required 

for other applicants. 

Examples of documents that may be submitted as proof of identity include a driver’s license, marriage or divorce record, life insurance policy or passport. Photo identification is preferred but not required. 

EXPLANATION OF PROVISION

The bill would require the Commissioner to undertake a study to 

determine the best method by which to (a) require and obtain photo 

identification of persons applying for Social Security benefits, an 

SSN, or a replacement SSN card, and (b) provide reasonable exceptions to this requirement to promote efficient and effective administration of the Social Security program. 

In addition, the study would be required to include an evaluation 

of the costs and benefits of photo identification, including the degree to which the security and integrity of the Social Security program would be enhanced. 

REASON FOR CHANGE

The SSA has conducted pilot projects in which the agency requested photographic identification from individuals filing for Social Security or SSI benefits based on a disability or blindness. The 

purpose was to gather information on the use of photographic identification to address the issue of complicit impersonation in the disability claims process. However, SSN issuance and other benefit 

applications are also vulnerable to fraud, and requiring photographic identification in these circumstances should be studied as 

well. 

EFFECTIVE DATE

The Commissioner would be required to report the results of the 

study to the House Committee on Ways and Means and the Senate 

Committee on Finance no later than 18 months after enactment. 

Sec. 204. Restrictions on issuance of multiple replacement Social Security cards 

CURRENT LAW

Federal regulations specify that, in the case of a lost or damaged 

Social Security card, a duplicate card bearing the same name and 

number may be issued. In the case of a name change, a corrected 

card bearing the same number and new name may be issued. SSA 

policy allows individuals to obtain up to 52 replacement cards per 

year, with no lifetime limit. 

EXPLANATION OF PROVISION

The bill would require the Commissioner to restrict issuance of 

replacement SSN cards issued to any individual to 3 per year and 

10 for life, except in cases where the Commissioner determines 

there is minimal opportunity for fraud. 

35 

REASON FOR CHANGE

Of the nearly 18 million SSN cards issued in fiscal year 2003, 

more than 12 million (69 percent) were replacement cards. In testimony before the Committee on Ways and Means, Subcommittee on 

Social Security, the GAO stated that the SSA’s policy for replacing 

Social Security cards increases the potential for misuse of SSNs, 

and recommended limiting replacement SSN card issuance. The 

ability to obtain numerous replacement SSN cards increases the 

vulnerability that requestors may obtain SSNs for a wide range of 

illicit uses, including selling them to non-citizens to enable them to 

work or to individuals seeking to hide their identity. 

The SSA Inspector General also stated that the SSA is at risk 

from individuals who misuse replacement SSN cards. In a 2001 

audit, the SSA Inspector General found irregularities among a 

sample of individuals issued 3–6 replacement cards within a year, 

which indicated the individuals obtained replacement cards for suspect reasons. These irregularities included SSN holders who had 

earnings higher than would be expected given the individual’s age, 

number of employers, and type of employment; an improbable number of replacement cards issued based on the individual’s age; 

wages reported under the individual’s SSN but not the individual’s 

name as stated on the card issued; and individuals with earnings 

who were also drawing disability benefits. The SSA Inspector General recommended restricting issuance of replacement SSN cards to 

an individual to 3 per year and 10 over an individual’s lifetime. 

EFFECTIVE DATE

The Commissioner would be required to issue regulations no 

later than one year after enactment. 

Sec. 205. Study relating to modification of the Social Security account numbering system to show work authorization status 

CURRENT LAW

SSN cards issued to persons other than U.S. citizens or persons 

lawfully admitted to the U.S. with permanent work authorization 

from the Department of Homeland Security (DHS) (which subsumed the former Immigration and Naturalization Service [INS]) 

are annotated to indicate the individual’s work authorization status, as follows: 

(1) SSN cards issued to persons lawfully admitted to the U.S. 

on a temporary basis with DHS work authorization are inscribed ‘‘VALID FOR WORK ONLY WITH INS AUTHORIZATION.’’ 

(2) SSN cards issued to persons lawfully admitted to the U.S. 

without DHS work authorization are inscribed ‘‘NOT VALID 

FOR EMPLOYMENT.’’ Such persons may be assigned an SSN 

only for valid non-work purposes, such as when Federal statute 

or regulation requires an SSN to receive Federally-funded benefits, or when a State or local law requires an SSN to receive 

general public assistance benefits. 

While SSN cards (and SSA records) are annotated to indicate an 

individual’s work authorization status at the time a number is assigned in cases described above, the current Social Security numVerDate Aug 04 2004 00:47 Sep 16, 2004 Jkt 029006 PO 00000 Frm 00035 Fmt 6659 Sfmt 6602 E:\HR\OC\HR685P1.XXX HR685P1
36 

bering system does not reflect an individual’s work authorization 

status. 

EXPLANATION OF PROVISION

The bill would require the Commissioner, in consultation with 

the Secretary of Homeland Security, to undertake a study to determine the best method by which to modify SSNs assigned to persons 

who (1) are not United States citizens, (2) have not been admitted 

for permanent residence, and (3) are not legally authorized to work 

in the United States or are authorized to work in the United States 

with restriction, to indicate the individual’s work authorization status. 

REASON FOR CHANGE

Employers are required to solicit a worker’s SSN in order to report their wages and pay Social Security taxes. A worker may also 

submit the SSN card as part of the proof required by the Department of Homeland Security (Form I–9) that an individual is authorized to work in the United States. 

However, employers are not required to see the SSN card, nor 

are they required to verify a verbally-provided SSN with the SSA 

or confirm work authorization by contacting the Department of 

Homeland Security. Since SSNs may be issued for non-work purposes in limited situations, or based on temporary work authorization, modifying the SSN itself to indicate whether or not it was 

issued based on permanent authorization to work could potentially 

help employers determine whether an individual is truly authorized to work in the United States without placing additional documentation burdens on them. 

EFFECTIVE DATE

The Commissioner would be required to report the results of the 

study to the Committee on Ways and Means and the Committee on 

Finance no later than one year after enactment. 

TITLE III—ENFORCEMENT 

Sec. 301. New criminal penalties for misuse of Social Security account numbers 

CURRENT LAW

Section 208 of the Social Security Act provides criminal penalties 

for fraudulently obtaining an SSN from the SSA or the misuse of 

an SSN. In such cases, Section 208 specifies that persons shall be 

guilty of a felony and upon conviction shall be fined under Title 18, 

United States Code (up to $250,000 for an individual and up to 

$500,000 for an organization) and/or imprisoned for up to five 

years. 

In addition, depending upon the facts, certain sections under 

Title 18 of the United States Code are applicable to the misuse of 

SSNs, including 18 U.S.C §1028(a)(7), the ‘‘Identity Theft and Assumption Deterrence Act of 1998’’ (P.L. 105–318), which prohibits 

the knowing transfer or use of another person’s SSN without lawful 

authority. The ‘‘Internet False Identification Prevention Act of 

2000’’ (P.L. 106–578) closed some loopholes in the ‘‘Identity Theft 

37 

and Assumption Deterrence Act of 1998’’ by prohibiting the transfer of a false identification document by electronic means, including 

on a template or computer file or disc and repealed provisions of 

the Federal criminal code prohibiting the mailing of private identification documents without a disclaimer noting that such documents are not government produced. 

The ‘‘Identity Theft Penalty Enhancement Act’’ (P.L. 108–275) establishes penalties for aggravated identity theft. The law prescribes 

sentences, to be imposed in addition to the punishments provided 

for the related felonies, of: (1) Two years’ imprisonment for knowingly transferring, possessing, or using, without lawful authority, a 

means of identification of another person during and in relation to 

specified felony violations; and (2) five years’ imprisonment for 

knowingly taking such action with respect to a means of identification or a false identification document during and in relation to 

specified felony violations pertaining to terrorist acts. The law also 

prohibits a court from: (1) Placing any person convicted of such a 

violation on probation; (2) reducing any sentence for the related felony to take into account the sentence imposed for such a violation; 

or (3) providing for concurrent terms of imprisonment for a violation of the Act and a violation under any other Act. 

Also, the new law expands the previous identity theft prohibition 

to: (1) Cover possession of a means of identification of another with 

intent to commit specified unlawful activity; (2) increase penalties 

for violations; and (3) include acts of domestic terrorism within the 

scope of a prohibition against facilitating an act of international 

terrorism. 

Lastly, P.L. 108–275 law modifies provisions regarding embezzlement and theft of public money, property, or records to provide for 

combining amounts from all the counts for which the defendant is 

convicted in a single case for purposes of determining which penalties apply. 

EXPLANATION OF PROVISION

The bill would expand the types of SSN misuse to which criminal 

penalties apply. Specifically, the bill would provide criminal penalties for persons who: (1) Disclose, sell or transfer their own SSN 

with intent to deceive; (2) offer, for a fee, to improperly acquire or 

help improperly acquire an additional SSN for an individual; (3) 

violate the prohibition on display of SSNs on employee identification cards or tags created under Section 105 of this bill; (4) violate 

the prohibitions the bill would establish under Sections 101, 103, 

104, 105, 106, or 107 of this bill (with respect to officers or employees of any Federal, State or local agency); or (5) violate Sections 

101, 103, or 107 of this bill (with respect to bankruptcy trustees). 

(Note: the penalties for violations of Section 108 are included in 

Section 108 of the bill.) 

REASON FOR CHANGE

Identity theft often begins with the misuse of an SSN. While advances have been made to prosecute those individuals who assist 

another person to improperly acquire an additional SSN or a number that purports to be an SSN, the SSA Inspector General and the 

Department of Justice have continued to encounter some problems, 

for example in prosecuting individuals who operate over the InterVerDate Aug 04 2004 00:47 Sep 16, 2004 Jkt 029006 PO 00000 Frm 00037 Fmt 6659 Sfmt 6602 E:\HR\OC\HR685P1.XXX HR685P1
38 

net or at a flea market. It is appropriate to close loopholes to prevent individuals assisting another person to improperly acquire an 

additional SSN or a number that purports to be an SSN. In addition, it is appropriate to establish penalties for those who violate 

the prohibitions on sale, purchase and display to the general public 

established under this bill. 

In addition, the SSA Inspector General has investigated individuals who have sold or transferred their own SSN to a third person 

with intent to deceive and has encountered problems in the prosecution. While such an individual may potentially be prosecuted 

under the criminal statutes involving conspiracy or aiding and 

abetting, because of the gravity of SSN misuse, it is appropriate to 

address this problem head on and provide criminal penalties when 

an individual sells or transfers their SSN with intent to deceive. 

EFFECTIVE DATE

The criminal penalty would apply to violations that occur after 

enactment, except for violations under Title I of this bill. In such 

cases, the criminal penalty would apply to violations that occur on 

or after the applicable effective date. 

Sec. 302. Extension of civil monetary penalty authority 

CURRENT LAW

Section 1129 of the Social Security Act (42 U.S.C. §408) authorizes the Commissioner to impose civil monetary penalties and assessments on any person who makes a false statement or representation of a material fact, or omits a material fact while providing 

a statement, for use in determining eligibility for Social Security or 

SSI benefits or benefit amount. The Commissioner may impose a 

civil monetary penalty of up to $5,000 for each violation, and an 

assessment of up to twice the amount of benefits or payments paid 

as a result of such violation. 

Currently, an individual who improperly obtains an SSN from 

SSA or misuses another person’s SSN is not subject to civil monetary penalties and assessments under Section 1129, except in cases 

of SSN misuse related to the receipt of Social Security or SSI benefits. 

EXPLANATION OF PROVISION

The bill would expand the types of activities to which civil monetary penalties and assessments apply. Specifically, it would authorize the Commissioner to impose (in addition to any other penalties 

that may apply) civil monetary penalties and assessments on persons who: (1) Use an SSN obtained through false information; (2) 

falsely represent an SSN to be their own; (3) alter an SSN card; 

(4) buy or sell an SSN card; (5) counterfeit an SSN card; (6) disclose, use or compel the disclosure of the SSN of any person in violation of any Federal law; (7) provide false information to obtain an 

SSN; (8) offer to acquire, for a fee, an additional SSN for an individual; (9) disclose, sell or transfer a person’s own SSN with intent 

to deceive; (10) violate Sections 101, 103, 104, 105, 106, or 107 of 

this bill (with respect to officers or employees of a Federal, State 

or local agency); (11) violate Sections 101, 103, or 107 of this bill 

(with respect to bankruptcy trustees); (12) violate Section 108 of 

39 

this bill; or (13) violate Section 303 of this bill (with respect to SSA 

employees). 

REASON FOR CHANGE

SSN misuse, not related to the determination of eligibility for, or 

the amount of, Social Security or SSI benefits, can also result in 

considerable costs for the government, the private sector, and individuals who are victims of fraud. In many cases, the costs of SSN 

misuse extend beyond monetary losses. 

The SSN is a valuable commodity today for criminals. As the 

Subcommittee has heard in testimony, the use of the SSN has 

grown so that it is interwoven into many aspects of every day life. 

It has become the de facto national identifier, used as a ‘‘breeder 

document’’ to obtain a driver’s license or a credit card, open a bank 

account or secure a loan. 

Because of the prevalence of the use of the SSN in society and 

the gravity of SSN misuse, it is appropriate to provide for civil 

monetary penalties and assessments for violations of the law relating to SSN misuse in general. 

EFFECTIVE DATE

The civil monetary penalties would apply to violations that occur 

after enactment, except with respect to violations of prohibitions 

created under this bill. In such cases, the civil monetary penalties 

would apply to violations that occur on or after the applicable effective date. 

Sec. 303. Criminal penalties for employees of the Social Security Administration who knowingly and fraudulently issue Social Security cards or Social Security account numbers 

CURRENT LAW

SSA employees who fraudulently sell SSNs to third parties may 

be tried under a number of criminal statutes, including but not 

limited to 18 U.S.C. §371 (conspiracy) and 18 U.S.C. §641 (theft of 

government property). 

EXPLANATION OF PROVISION

The bill would provide for mandatory minimum criminal penalties for SSA employees (including contract workers, State Disability Determination Service workers and volunteers in an SSA facility) who knowingly and fraudulently sell or transfer SSNs or Social Security cards, with the penalty based on the number of SSNs 

or Social Security cards fraudulently issued, as follows: (1) 1 to 50 

SSNs or cards: 1–5 years imprisonment; (2) 51 to 100 SSNs or 

cards: 5–10 years imprisonment; or (3) 101 or more SSNs or cards: 

10–20 years imprisonment. 

In addition, the bill would apply the same penalties to an SSA 

employee who attempts or conspires to commit a violation of this 

section. 

REASON FOR CHANGE

Crimes of fraud against the integrity of the SSN are of great concern because of the far reaching implication such crimes have upon 

40 

the integrity of the SSA, the potential impact on innocent individuals due to identity theft, and possible misuse of SSNs in terrorist 

activities. This is especially true when the crime is perpetrated, at 

least in part, by a SSA employee. SSA employees issuing SSNs are 

in a position of trust. When this trust is violated, the effect on the 

SSA’s programs and operations and on the public in general can be 

devastating. Fortunately, the number of SSA employees taking 

part in these crimes is small, but participation in such crimes by 

any SSA employee to any extent cannot be tolerated. 

The SSA and the SSA Inspector General are concerned that current laws do not provide an adequate deterrent to SSA employees 

tempted to facilitate these crimes. In several recent investigations 

involving SSA employees, the employee when caught, has received 

little, if any, prison time though the employee may have fraudulently issued hundreds of SSNs. The Committee is concerned because the SSNs issued have usually not previously been issued to 

anyone else. Even a thorough credit check would not show this 

SSN to be fraudulent. This could allow a criminal to more easily 

assimilate into our society. Therefore, it is appropriate to provide 

for enhanced criminal penalties for SSA employees who assist in 

the fraudulent issuance of SSNs. 

EFFECTIVE DATE

The penalties would apply to violations that occur on or after enactment. 

Sec. 304. Enhanced penalties in cases of terrorism, drug trafficking, 

crimes of violence, or prior offenses 

CURRENT LAW

Sections 208, 811 and 1632 of the Social Security Act (regarding 

Social Security benefits, Special Benefits for Certain WWII Veterans and SSI benefits, respectively) provide that persons who willingly and knowingly commit fraud shall be guilty of a felony and 

upon conviction shall be fined under Title 18, United States Code, 

and/or imprisoned for up to five years. 

Examples of violations to which penalties apply include making 

false statements or representations of fact to obtain benefits or increase benefit payments; failing to disclose an event that affects an 

individual’s initial or continued right to receive benefits; and engaging in various types of SSN misuse or fraud (such as using an 

SSN obtained on the basis of false information; falsely representing 

an SSN to be one’s own with intent to deceive; buying or selling 

an SSN card; counterfeiting an SSN card; or disclosing, using or 

compelling the disclosure of the SSN of any person in violation of 

any Federal law). 

Penalties apply to violations committed by individuals (or organizations) acting in the capacity of a representative payee (or prospective representative payee) for a beneficiary other than the individual’s spouse. If the court determines that the violation also includes willful misuse of funds, the court may require full or partial 

restitution of funds to the beneficiary. 

41 

EXPLANATION OF PROVISION

The bill would enhance criminal penalties under Sections 208, 

811 and 1632 of the Social Security Act with respect to (a) repeat 

offenders and (b) violations committed to facilitate a drug trafficking crime, a crime of violence, or an act of international or domestic terrorism. 

Specifically, the bill would provide for (1) fines and/or imprisonment for up to five years for first offenders; (2) fines and/or imprisonment for up to 10 years for repeat offenders; (3) fines or imprisonment for up to 20 years for persons convicted of violations for the 

purpose of facilitating a drug trafficking crime or a crime of violence; and (4) fines or imprisonment for up to 25 years for persons 

convicted of violations for the purpose of facilitating an act of international or domestic terrorism. 

REASON FOR CHANGE

The expanded use of the SSN in today’s society has made it a 

very valuable commodity for criminals. As the Subcommittee has 

heard in several hearings, the SSN is considered a prime ‘‘breeder 

document’’, a valuable commodity used to obtain a driver’s license 

or credit cards, as well as open a bank account or obtain a loan. 

But in addition to being a lynchpin for identity theft crimes, it also 

assists terrorists in assimilating into our society and avoiding detection. 

The integrity of the SSN is vital. Its importance in both identity 

theft and homeland security is universally recognized. Providing 

new, enhanced, structured penalties appropriately reflects the vital 

importance of the SSN and the commitment of the Congress, the 

SSA and the SSA Inspector General to its protection. 

EFFECTIVE DATE

Would apply to violations that occur after enactment. 

III. VOTE OF THE COMMITTEE 

In compliance with clause 3(b) of rule XIII of the Rules of the 

House of Representatives, the following statements are made concerning the vote of the Committee on Ways and Means in its consideration of the bill, H.R. 2971. 

MOTION TO REPORT THE BILL

The bill, H.R. 2791, as amended, was ordered favorably reported 

by a roll call vote of 33 yeas to 0 nays (with a quorum being 

present). The vote was as follows: 

Representatives Yea Nay Present Representative Yea Nay Present 

Mr. Thomas ........................... X ........... ............. Mr. Rangel ........................... X ........... .............

Mr. Crane .............................. X ........... ............. Mr. Stark .............................. ........... ........... .............

Mr. Shaw ............................... X ........... ............. Mr. Matsui ............................ ........... ........... .............

Mrs. Johnson ......................... X ........... ............. Mr. Levin .............................. X ........... .............

Mr. Houghton ........................ X ........... ............. Mr. Cardin ............................ X ........... .............

Mr. Herger ............................. X ........... ............. Mr. McDermott ..................... X ........... .............

Mr. McCrery ........................... X ........... ............. Mr. Kleczka ........................... X ........... .............

Mr. Camp .............................. X ........... ............. Mr. Lewis (GA) ..................... ........... ........... .............

Mr. Ramstad ......................... X ........... ............. Mr. Neal ............................... X ........... .............

Mr. Nussle ............................. ........... ........... ............. Mr. McNulty .......................... ........... ........... .............

42 

Representatives Yea Nay Present Representative Yea Nay Present 

Mr. Johnson ........................... X ........... ............. Mr. Jefferson ........................ X ........... .............

Ms. Dunn .............................. X ........... ............. Mr. Tanner ............................ X ........... .............

Mr. Collins ............................ ........... ........... ............. Mr. Becerra .......................... X ........... .............

Mr. Portman .......................... X ........... ............. Mr. Doggett .......................... X ........... .............

Mr. English ........................... X ........... ............. Mr. Pomeroy ......................... X ........... .............

Mr. Hayworth ......................... ........... ........... ............. Mr. Sandlin .......................... ........... ........... .............

Mr. Weller .............................. X ........... ............. Ms. Tubbs Jones .................. X ........... .............

Mr. Hulshof ........................... X 

Mr. McInnis ........................... X 

Mr. Lewis (KY) ...................... X 

Mr. Foley ............................... X 

Mr. Brady .............................. X 

Mr. Ryan ............................... X 

Mr. Cantor ............................. X 

IV. BUDGET EFFECTS OF THE BILL 

A. COMMITTEE ESTIMATE OF BUDGETARY EFFECTS

In compliance with clause 3(d)(2) of rule XIII of the Rules of the 

House of Representatives, the following statement is made concerning the effects on the budget of this bill, H.R. 2971 as amended 

and reported: The Committee agrees with the estimate prepared by 

the Congressional Budget Office (CBO), which is included below. 

B. STATEMENT REGARDING NEW BUDGET AUTHORITY AND TAX

EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee states that H.R. 2971 

does not include any new budget authority or tax expenditures. 

C. COST ESTIMATE PREPARED BY THE CONGRESSIONAL BUDGET

OFFICE

In compliance with clause 3(c)(3) of rule XIII of the Rules of the 

House of Representatives, requiring a cost estimate prepared by 

the Congressional Budget Office, the following report by CBO is 

provided. 

H.R. 2971—Social Security Privacy and Identity Theft Prevention 

Act of 2004 

Summary: H.R. 2971 would provide new safeguards for the use 

of Social Security numbers (SSNs) and penalties for SSN misuse. 

The bill would: 

• Bar the sale, purchase, or display of the SSN in both the 

public and private sectors, with certain exceptions; 

• Prohibit the display of SSNs (including magnetic strips or 

bar codes that contain them) on government checks, drivers’ licenses, and motor vehicle registrations, employer-issued identification cards or tags and cards used to gain access to employee benefits or services; 

• Require government and private entities to limit access to 

SSNs and assure that they have safeguards to prevent 

breaches of confidentiality; 

• Tighten some procedures that the Social Security Administration (SSA) follows when issuing new or replacement SSNs, 

and require SSA to study further improvements; and 

43 

• Create or expand civil and criminal penalties for SSN misuse. 

Implementing H.R. 2971 could affect direct spending and revenues, but CBO estimates that any such effects would not be significant. Complying with the bill’s standards would also cause federal 

agencies to incur additional administrative expenses. Those costs— 

which CBO estimates at $3 million over the 2005–2009 period— 

would generally come from agencies’ salary and expense budgets, 

which are subject to annual appropriation. 

H.R. 2971 contains a number of intergovernmental mandates as 

defined in the Unfunded Mandates Reform Act (UMRA), including 

limitations on the sale, display, and use of SSNs by state, local, 

and tribal governments. While there is some uncertainty about the 

aggregate costs of complying with those mandates on those governments, CBO estimates that they likely would exceed the intergovernmental threshold established in UMRA ($60 million in 2004, adjusted annually for inflation) in at least one of the first five years 

following the date the mandates go into effect. 

H.R. 2971 also would impose private-sector mandates, as defined 

in UMRA, on certain private entities and consumer reporting agencies. CBO cannot determine the total direct costs of complying with 

those mandates because the costs would depend on specific regulations that would be issued to implement the bill. 

Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 2971 is shown in the following table. For this 

estimate, CBO assumes that the bill will be enacted in the fall of 

2004. The costs of the legislation fall primarily in functions 650 

(Social Security) and 750 (administration of justice) but—because 

all government agencies use the SSN—affect numerous other budget functions as well. As explained below, CBO cannot estimate 

some potential costs in cases where agencies do not yet know how 

they would implement certain provisions. 

By fiscal year, in millions of dollars— 

2005 2006 2007 2008 2009 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 1

Estimated authorization level ....................................................................... 1 1 * * * 

Estimated outlays ......................................................................................... 1 1 * * * 

1 Enacting H.R. 2971 could also affect direct spending and revenues, but CBO estimates that any such effects would not be significant. 

Note.—* = less than $500,000. 

Basis of estimate: Federal agencies already comply, or are moving to comply, with most requirements of H.R. 2971. The budgetary 

effects thus stem from a few provisions that would change agencies’ 

practices or assign new enforcement responsibilities. 

Current law 

Federal agencies are allowed—in fact, are usually required—to 

collect SSNs, but the Privacy Act bars the government from selling 

or renting SSNs or disclosing them (with certain exceptions) without the subjects’ written consent. Agencies also must justify any 

matching agreements involving computerized records (for example, 

those that intercept tax refunds of people who have defaulted on 

government loans), must ensure computer security, and must post 

their privacy policies when conducting business electronically with 

the public. 

44 

H.R. 2971 would require agencies that accept SSNs electronically 

from the public to ensure that the number is encrypted or ‘‘otherwise appropriately secured from disclosure.’’ SSA and the Internal 

Revenue Service—which process millions of reports that contain 

SSNs—now use encryption or are phasing out the few exceptions. 

No law now requires encryption, however, so some lower-volume 

users may use less-advanced technology. 

The Treasury Department’s Financial Management Service no 

longer shows SSNs on checks, except in a few cases dictated by 

states’ needs. Identification tags issued to federal civilian employees generally do not show or contain the SSN. 

Spending subject to appropriation 

Social Security Administration and Department of Justice. H.R. 

2971 would give specific new responsibilities to SSA and the Department of Justice. It would direct SSA to independently verify 

birth records for SSN applicants, except for babies who get SSNs 

through the Enumeration at Birth program. SSA already does so 

for applicants more than 1 year old, so extra costs would be insignificant. H.R. 2971 also would require SSA to prepare several studies and reports, notably on a possible requirement for photo identification when people apply for benefits or replacement SSN cards 

and on revising the account numbering system to reflect the work 

authorization of immigrants. The Department of Justice would take 

the lead in drafting regulations to govern compliance with the new 

law in both the public and private sectors and would prosecute violations. Based on the scope of the agencies’ new tasks, CBO estimates costs of $2 million over the 2005–2009 period, assuming the 

availability of appropriated funds. 

That estimate contains a major caveat, however. H.R. 2971 

would require all federal agencies to demonstrate to SSA that they 

allow access only to employees who need SSNs to carry out their 

statutory responsibilities and have safeguards to prevent unauthorized access and breaches of confidentiality. The provision would 

apply to all SSNs in the agencies’ possession, including paper 

records, not just to computerized systems. Its implications for contractors (who handle key responsibilities especially in the areas of 

welfare and child support enforcement) are unclear. According to 

the General Accountability Office (GAO), every federal agency uses 

the SSN in some way. CBO cannot estimate the cost of this provision to SSA or to other agencies because it would depend on SSA’’s 

approach. 

Department of Defense. The bill would ban the display of SSNs 

on employee identification cards. The Geneva Convention calls for 

military personnel to have a number displayed on their identification cards, and the Department of Defense has chosen to use the 

SSN. Under the bill, it would have to revamp its records and cards 

to use another unique identifier for its 2.7 million active-duty and 

reserve forces. Because DOD cannot determine at this time how it 

would implement the provision, CBO cannot estimate the cost, but 

it could be quite large. 

Employee Benefits. H.R. 2971 would bar administrators of employee-benefit plans (such as health insurers) from displaying the 

SSN on identification or membership cards. Some plans that participate in the Federal Employees Health Benefits (FEHB) program 

45 

show the SSN on membership cards. Although the ban would technically apply only to cards issued one year after issuance of regulations, or about 30 months after enactment, CBO assumes that the 

affected plans would issue replacement cards to current members 

as well. (Changes to plans’ administrative costs would likely be recouped through higher premiums charged to FEHB enrollees.) Because the government subsidizes FEHB premiums, it would bear 

part of the cost; CBO estimates the extra cost to the federal government would be less than $500,000. (About half would come from 

agencies’ salary and expense accounts on behalf of current employees, but the rest would be paid on behalf of annuitants and would 

constitute direct spending.) CBO expects that the provision would 

not apply to the government’s Medicare program, which shows the 

SSN on the cards of its 42 million enrollees. 

Direct spending and revenues 

Civil and Criminal Penalties. Title III of H.R. 2971 would add or 

toughen civil and criminal penalties for SSN misuse. The Commissioner of Social Security (with permission from the Attorney General) could impose civil penalties of as much as $5,000 per offense; 

criminal penalties require a court conviction and may be as high 

as $250,000. Criminal fines are deposited in the Crime Victims 

Fund and later spent; consequently, over time, they have little net 

effect on the budget. Collections of civil fines are recorded as revenues and deposited in the Treasury. The penalties would apply to 

offenses committed after enactment, and CBO judges that they 

would not be significant over the 2005–2009 period. 

Regulatory Agencies. Title I would direct the Commissioner of 

SSA and the Attorney General to consult with—among others— 

various banking and regulatory agencies when crafting regulations 

to end the sale or display of SSNs in the public and private sectors. 

The Federal Reserve earns interest on its holdings of government 

securities and subtracts its operating costs before remitting the 

rest to the Treasury as a revenue. Several other agencies—the Securities and Exchange Commission, the Federal Deposit Insurance 

Corporation, and so forth—cover their costs through fees or assessments. CBO expects that those agencies would not incur significant 

costs as a result of H.R. 2971, so that any effect on direct spending 

or revenues would be negligible. 

Child Support Enforcement. Requiring government agencies to 

remove SSNs from checks could raise administrative costs to the 

child support enforcement (CSE) program or delay distribution of 

collections. Many states currently use SSNs as their primary identifier when distributing child support, and the federal government 

covers the bulk of states’ costs for administering CSE. However, 

CBO judges that the requirement would only have a small impact 

on the federal budget. 

Estimated impact on state, local, and tribal governments: H.R. 

2971 contains a number of intergovernmental mandates as defined 

in UMRA. Specifically, the bill would restrict or prohibit governmental agencies from: 

• Selling or displaying Social Security numbers that have 

been disclosed to the agency because of a mandatory requirement (applicable only to documents issued after the requirements become effective); 

46 

• Displaying SSNs on checks or check stubs; • Placing SSNs on drivers licenses, identification cards, vehicle registrations, or employee identification cards, or coding 

them into magnetic strips or bar codes on those documents; 

and, • Allowing prisoners access to SSNs of other individuals. 

The bill also would require state and local governments to restrict access to SSNs and their derivatives to employees whose access is essential to effective administration of programs. In addition, the governments must implement safeguards to preclude unauthorized access to SSNs and their derivatives and to protect individual confidentiality. 

While state and local governments have, in recent years, taken 

steps to reduce the use of SSNs, many continue to use them for a 

variety of purposes. Based on information from the GAO and discussions with state and local officials, CBO estimates that the costs 

of complying with the mandates in the bill likely would exceed the 

intergovernmental threshold established in UMRA ($60 million in 

2004, adjusted annually for inflation) in at least one of the first five 

years following the date the mandates go into effect. 

Exceptions and requirements 

The bill would allow exceptions for the display or sale of SSNs 

when such use or display is authorized by the Social Security Act; 

necessary for law enforcement, national security, or tax law purposes; done in compliance with certain motor vehicle laws or consumer reporting practices; or for non-market research for advancing the public good. The bill’s restrictions on the sale or display 

(which includes Internet transmissions that are not encrypted or 

otherwise secured) of SSNs would be prospective, and would not require state and local governments to redact SSNs from existing 

publicly available documents. 

However, if state and local governments do not currently have a 

system in place to safeguard SSNs, they would have to implement 

a new system for any documents issued when the regulations become effective (up to two and a half years following enactment). If 

state or local governments use SSNs on checks and check-stubs as 

part of their recordkeeping and tracking procedures, they would 

have to alter those systems and remove the SSNs. They also would 

have to implement systems for removing SSNs from many documents that include SSNs and that are available to the public. Likewise, some states may have to alter their document systems for 

driver licenses and vehicle registrations to remove SSNs that are 

coded electronically onto a magnetic strip or digitized as part of a 

bar code. Finally, any government agency that uses SSNs would 

have to implement safeguards to preclude unauthorized access to 

SSNs and their derivatives and to protect confidentiality. 

Potential costs to state, county, and municipal governments 

Because of the large number of governments affected by these 

provisions (particularly municipal governments), even small 

changes to existing systems would result in costs that exceed the 

theshold established in UMRA. There are over 75,000 municipal 

governments, so even small one-time costs—for example, as little 

as $5,000—would add up to costs over $60 million in a given year. 

47 

Counties and states, on the other hand, while fewer in number 

(there are about 3,600 counties in the United States) are more dependent on SSNs for various recordkeeping and identification purposes and are thus likely to face significantly higher costs because 

of the complexity and scope of their recordkeeping systems. (Some 

counties estimate that altering their systems to use identifiers 

other than SSNs or to eliminate display of SSNs would result in 

one-time costs ranging from $40,000 to over $1 million, depending 

on the scope of the changes that would need to be made.) 

Estimated impact on the private sector: H.R. 2971 would impose 

private-sector mandates, as defined in UMRA, on certain private 

entities and consumer reporting agencies. CBO cannot determine 

the total direct costs of complying with those mandates because 

such costs would depend on the specific regulations that would be 

issued under the bill. 

Prohibition of the sale, purchase, and disclosure of Social Security 

numbers 

The bill would impose a private-sector mandate on certain private entities by generally prohibiting the purchase, sale, or display 

of a Social Security number to the general public, including the display of an SSN on any card or tag issued to another person to provide access to any goods, services, or benefits. Private entities also 

would be prohibited from displaying SSNs on employee identification cards or tags (including on magnetic strips and bar codes). In 

addition, private entities that maintain SSNs in their records for 

the conduct of their business would be required to limit access to 

those records and institute safeguards to protect the confidentiality 

of those records. The Commissioner of Social Security would issue 

regulations specifying the safeguards that would be required. CBO 

cannot estimate the direct cost to private entities of complying with 

those mandates. 

Refusal to do business without receipt of Social Security numbers 

The bill would impose a new private-sector mandate by prohibiting certain private entities from refusing to do business with an 

individual because the individual will not provide his or her SSN. 

Such private entities that refuse to do business would be considered to have committed an unfair or deceptive act or practice in 

violation of federal trade law and would be subject to penalties. 

The cost of the mandate would be the incremental amount required 

to complete a business transaction without using a Social Security 

number for identification or credit verification. For example, a business may incur additional costs in verifying the credit worthiness 

of a person without an SSN for identification. According to the Federal Trade Commission and industry sources, few private entities 

currently refuse to do business if an individual does not provide his 

or her Social Security number. Therefore, CBO estimates that the 

direct cost to comply with the mandate would be small. 

Prohibition of Social Security numbers in credit header information 

The bill also would impose a private-sector mandate on consumer 

reporting agencies by prohibiting such agencies from providing Social Security numbers, or any derivative of such numbers, except 

in a full consumer report furnished in accordance with the Fair 

48 

Credit Reporting Act. The direct cost of the mandate would be the 

net income lost to consumer reporting agencies from not furnishing 

a consumer’s Social Security number in the credit header information they sell to customers. According to industry sources, such 

agencies expect only a slight decrease in the sales of credit header 

information. Therefore, CBO estimates that the direct cost to comply with the mandate would be small. 

Estimate prepared by: Federal Costs: Kathy Ruffing (SSA); Julia 

Christensen (FEHB); Sheila Dacey (Child Support Enforcement); 

Kathleen Gramp (Banking Agencies); Mark Grabowicz (Justice); 

Matthew Pickford (Treasury); and Michelle Patterson (Defense). 

Impact on State, Local, and Tribal Governments: Leo Lex. Impact 

on the Private Sector: Paige Piper-Bac and Ralph Smith. 

Estimate approved by: Peter H. Fontaine, Deputy Assistant Director for Budget Analysis. 

V. OTHER MATTERS TO BE DISCUSSED UNDER THE 

RULES OF THE HOUSE 

A. Committee Oversight Findings and Recommendations 

With respect to clause 3(c)(1) of rule XIII of the Rules of the 

House of Representatives (relating to oversight findings), the Committee, based on public hearing testimony, conclude that it is appropriate and timely to consider the bill as reported. 

B. Statement of General Performance Goals and Objectives 

With respect to clause 3(c)(4) of rule XIII of the Rules of the 

House of Representatives, the Committee advises that the Administration has in place program goals and objectives, which have been 

reviewed by the Committee. H.R. 2971 includes provisions to assist 

the Administration in achieving its goals to prevent SSN misuse 

and strengthen the integrity of SSNs. 

C. Constitutional Authority Statement 

With respect to clause (3)(d)(1) of rule XIII of the Rules of the 

House of Representatives, relating to Constitutional Authority, the 

Committee states that the Committee’s action in reporting the bill 

is derived from Article I of the Constitution, Section 8 (‘‘The Congress shall have power to lay and collect taxes, duties, imposts, and 

excises, to pay the debts and to provide for * * * the general Welfare of the United States.’’) 

D. Information Relating to Unfunded Mandates 

This information is provided in accordance with Section 423 of 

the Unfunded Mandates Reform Act of 1995 (P.L. 104–4). 

The Committee has determined that the bill does impose a Federal intergovernmental mandate on State, local, or tribal governments. The Committee has determined that the bill does contain 

Federal mandates on the private sector. 

VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS 

REPORTED 

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitVerDate Aug 04 2004 00:47 Sep 16, 2004 Jkt 029006 PO 00000 Frm 00048 Fmt 6659 Sfmt 6602 E:\HR\OC\HR685P1.XXX HR685P1
49 

ted is enclosed in black brackets, new matter is printed in italic, 

existing law in which no change is proposed is shown in roman): 

SOCIAL SECURITY ACT 

* * * * * * * 

TITLE II—FEDERAL OLD-AGE, SURVIVORS, AND DISABILITY 

INSURANCE BENEFITS 

* * * * * * * 

EVIDENCE, PROCEDURE, AND CERTIFICATION FOR PAYMENT

SEC. 205. (a) * * * 

* * * * * * * 

(c)(1) * * * 

(2)(A) * * * 

(B)(i) * * * 

(ii)(I) The Commissioner of Social Security shall require of applicants for social security account numbers such evidence as may be 

necessary to establish the age, citizenship, or alien status, and true 

identity of such applicants, and to determine which (if any) social 

security account number has previously been assigned to such individual. With respect to an application for a social security account 

number for an individual who has not attained the age of 18 before 

such application, such evidence shall include the information described in subparagraph (C)(ii). 

(II) With respect to an application for a social security account 

number for an individual, other than for purposes of enumeration 

at birth, the Commissioner shall require independent verification of 

any birth record provided by the applicant in support of the application. The Commissioner may provide by regulation for reasonable 

exceptions from the requirement for independent verification under 

this subclause in any case in which the Commissioner determines 

there is minimal opportunity for fraud. 

(C)(i) * * * 

* * * * * * * 

(vi)(I) For purposes of clause (i) of this subparagraph, an agency 

of a State (or political subdivision thereof) charged with the administration of any general public assistance, driver’s license, or motor 

vehicle registration law which did not use the social security account number for identification under a law or regulation adopted 

before January 1, 1975, may require an individual to disclose his 

or her social security number to such agency solely for the purpose 

of administering the laws referred to in clause (i) above and for the 

purpose of responding to requests for information from an agency 

administering a program funded under part A of title IV or an 

agency operating pursuant to the provisions of part D of such title. 

(II) Any State or political subdivision thereof (and any person acting as an agent of such an agency or instrumentality), in the administration of any driver’s license or motor vehicle registration law 

within its jurisdiction, may not display a social security account 

number issued by the Commissioner of Social Security (or any derivative of such number) on any driver’s license or motor vehicle registration or any other document issued by such State or political 

50 

subdivision to an individual for purposes of identification of such 

individual or include on any such licence, registration, or other document a magnetic strip, bar code, or other means of communication 

which conveys such number (or derivative thereof). 

* * * * * * * 

(x)(I) An executive, legislative, or judicial agency or instrumentality of the Federal Government or of a State or a political subdivision thereof or a trustee appointed in a case under title 11, United 

States Code (or person acting as an agent of such an agency or instrumentality or trustee) may not sell or display to the general public any social security account number if such number has been disclosed to such agency, instrumentality, trustee, or agent pursuant to 

the assertion by such an agency, instrumentality, trustee, or agent 

to any person that disclosure of such number is mandatory. Notwithstanding the preceding sentence, such number may be sold or 

displayed to the general public in accordance with the exceptions 

specified in subclauses (II), (III), (IV), (V), (VI), (VII), and (VIII) 

(and for no other purpose). 

(II) Notwithstanding subclause (I), a social security account number may be sold by an agency, instrumentality, trustee, or agent referred to in subclause (I) to the extent that such sale is specifically 

authorized by this Act. 

(III) Notwithstanding subclause (I), a social security account 

number may be sold by an agency, instrumentality, trustee, or agent 

referred to in subclause (I) to the extent that is necessary or appropriate for law enforcement or national security purposes, as determined under regulations which shall be issued as provided in subparagraph (I) of this paragraph. 

(IV) Notwithstanding subclause (I), a social security account number may be sold by an agency, instrumentality, trustee, or agent referred to in subclause (I) to the extent that such sale is required to 

comply with a tax law of the United States or of any State (or political subdivision thereof). 

(V) Notwithstanding subclause (I), a social security account number may be sold by a State department of motor vehicles as authorized under subsection (b) of section 2721 of title 18, United States 

Code, if such number is to be used pursuant to such sale solely for 

purposes permitted under paragraph (1), (6), or (9) of such subsection. 

(VI) Notwithstanding subclause (I), a social security account number may be sold or otherwise made available by an agency, instrumentality, trustee, or agent referred to in subclause (I) to a consumer reporting agency (as defined in section 603(f) of the Fair 

Credit Reporting Act (15 U.S.C. 1681a(f))) for use or disclosure solely for permissible purposes described in section 604(a) of such Act 

(15 U.S.C. 1681b(a)). 

(VII) Notwithstanding subclause (I), a social security account 

number may be sold by an agency, instrumentality, trustee, or agent 

referred to in subclause (I) to the extent necessary for research (other 

than market research) conducted by any agency or instrumentality 

referred to in subclause (I) (or an agent of such an agency or instrumentality) for the purpose of advancing the public good, on the condition that the researcher provides adequate assurances that the social security account numbers will not be used to harass, target, or 

publicly reveal information concerning any identifiable individuals, 

51 

that information about identifiable individuals obtained from the 

research will not be used to make decisions that directly affect the 

rights, benefits, or privileges of specific individuals, and that the researcher has in place appropriate safeguards to protect the privacy 

and confidentiality of any information about identifiable individuals, including procedures to ensure that the social security account 

numbers will be encrypted or otherwise appropriately secured from 

unauthorized disclosure. In the case of social security account numbers which constitute personally identifiable medical information, 

the Commissioner of Social Security, with respect to medical research referred to in the preceding sentence, and the Attorney General of the United States, with respect to any medical research not 

referred to in the preceding sentence but which is treated in regulations of the Attorney General issued pursuant to subclause (VIII), 

shall maintain ongoing consultation with the Office for Civil Rights 

of the Department of Health and Human Services to ensure that the 

sale or purchase of such social security account numbers is permitted only in compliance with existing Federal rules and regulations prescribed by the Secretary of Health and Human Services 

pursuant to section 264(c) of the Health Insurance Portability and 

Accountability Act of 1996 (110 Stat. 2033). 

(VIII) Notwithstanding subclause (I), a social security account 

number may be sold or displayed to the general public by an agency, instrumentality, trustee, or agent referred to in subclause (I) 

under such other circumstances as may be specified in regulations 

issued as provided in subparagraph (I) of this paragraph. 

(IX) This clause does not apply with respect to a social security 

account number of a deceased individual. 

(X) For purposes of this clause, the term ‘‘sell’’ means, in connection with a social security account number, to accept an item of material value in exchange for such number. 

(XI) For purposes of this clause, the term ‘‘display to the general 

public’’ shall have the meaning provided such term in section 

208A(a)(3)(A). In any case in which an agency, instrumentality, 

trustee, or agent referred to in subclause (I) requires transmittal to 

such agency, instrumentality, trustee, or agent of an individual’s social security account number by means of the Internet without reasonable provisions to ensure that such number is encrypted or otherwise appropriately secured from disclosure, any such transmittal of 

such number as so required shall be treated, for purposes of this 

clause, as a ‘‘display to the general public’’ of such number by such 

agency, instrumentality, trustee, or agent for purposes of this clause. 

(XII) For purposes of this clause, the term social security account 

number includes any derivative of such number. Notwithstanding 

the preceding sentence, any expression, contained in or on any item 

sold or displayed to the general public, shall not be treated as a social security account number solely because such expression sets 

forth not more than the last 4 digits of such number if the remainder of such number cannot be determined based solely on such expression or any other matter presented in such material. 

(XIII) Nothing in this clause shall be construed to supersede, 

alter, or affect any restriction or limitation on the sale or display 

to the general public of social security account numbers, provided 

in any Federal statute, regulation, order, or interpretation, if the restriction or limitation is greater than that provided under this 

52 

clause, as determined under applicable regulations issued by the 

Commissioner of Social Security or by the Attorney General of the 

United States or another agency or instrumentality of the United 

States as provided in subparagraph (I) of this paragraph. 

(xi) No executive, legislative, or judicial agency or instrumentality 

of the Federal Government or of a State or a political subdivision 

thereof or trustee appointed in a case under title 11, United States 

Code (or person acting as an agent of such an agency or instrumentality or trustee) may include the social security account number of 

any individual (or any derivative of such number) on any check 

issued for any payment by the Federal Government, any State or political subdivision thereof, or any agency or instrumentality thereof, 

or such trustee or on any document attached to or accompanying 

such a check. 

(xii) No executive, legislative, or judicial agency or instrumentality of the Federal Government or of a State or political subdivision thereof, and no other person offering benefits in connection with 

an employee benefit plan maintained by such agency or instrumentality or acting as an agent of such agency or instrumentality, may 

display a social security account number (or any derivative thereof) 

on any card or tag that is commonly provided to employees of such 

agency or instrumentality (or to their family members) for purposes 

of identification or include on such card or tag a magnetic strip, bar 

code, or other means of communication which conveys such number. 

(xiii) No executive, legislative, or judicial agency or instrumentality of the Federal Government or of a State or political subdivision thereof (or person acting as an agent of such an agency or instrumentality) may employ, or enter into a contract for the use or 

employment of, prisoners in any capacity that would allow such 

prisoners access to the social security account numbers of other individuals. For purposes of this clause, the term ‘‘prisoner’’ means an 

individual confined in a jail, prison, or other penal institution or 

correctional facility. 

(xiv) Except as otherwise provided in this paragraph, in the case 

of any executive, legislative, or judicial agency or instrumentality of 

the Federal Government or of a State or political subdivision thereof 

and any trustee appointed in a case under title 11, United States 

Code (and any agent of such agency, instrumentality, or trustee) 

having in its possession an individual’s social security account 

number— 

(I) no officer or employee thereof shall have access to such 

number for any purpose other than the effective administration 

of the statutory provisions governing its functions, 

(II) such agency, instrumentality, trustee, or agent shall restrict, to the satisfaction of the Commissioner of Social Security, 

access to social security account numbers obtained thereby to officers and employees thereof whose duties or responsibilities require access for the administration or enforcement of such provisions, and 

(III) such agency, instrumentality, trustee, or agent shall provide such other safeguards as the Commissioner of Social Security determines to be necessary or appropriate to preclude unauthorized access to the social security account number and to 

otherwise protect the confidentiality of such number. 

53 

For purposes of this clause the term social security account number 

includes any derivative thereof. 

* * * * * * * 

(G) The Commissioner of Social Security shall issue a social security card to each individual at the time of the issuance of a social 

security account number to such individual. The social security 

card shall be made of banknote paper, and (to the maximum extent 

practicable) shall be a card which cannot be counterfeited. The 

Commissioner shall restrict the issuance of multiple replacement social security cards to any individual to 3 per year and to 10 for the 

life of the individual, except in any case in which the Commissioner 

determines there is minimal opportunity for fraud. 

* * * * * * * 

(I)(i) The Attorney General of the United States shall prescribe 

regulations to carry out the provisions of subclauses (III) and (VIII) 

of subparagraph (C)(x) of this paragraph, subparagraphs (A) and 

(B) of section 208A(b)(2), section 208A(b)(3)(B), and section 

208A(c)(2). In issuing such regulations, the Attorney General shall 

consult with the Commissioner of Social Security, the Secretary of 

Health and Human Services, the Secretary of Homeland Security, 

the Secretary of the Treasury, the Federal Trade Commission, the 

Federal banking agencies (as defined in section 3 of the Federal Deposit Insurance Act), the National Credit Union Administration, the 

Securities and Exchange Commission, State attorneys general, and 

such representatives of the State insurance commissioners as may be 

designated by the National Association of Insurance Commissioners. 

Any agency or instrumentality of the United States may exercise the 

authority of the Attorney General under this subparagraph, with respect to matters otherwise subject to regulation by such agency or 

instrumentality, to the extent determined appropriate in regulations 

of the Attorney General. 

(ii) In issuing the regulations described in clause (i) pursuant to 

the provisions of subparagraph (C)(x)(III), paragraph (A) or (B) of 

section 208A(b)(2), or section 208A(c)(2) (relating to law enforcement 

and national security), the Attorney General may authorize the sale 

or purchase of Social Security account numbers only if the Attorney 

General determines that— 

(I) such sale or purchase would serve a compelling public interest that cannot reasonably be served through alternative 

measures, and 

(II) such sale or purchase will not pose an unreasonable risk 

of identity theft, or bodily, emotional, or financial harm to an 

individual (taking into account any restrictions and conditions 

that the Attorney General imposes on the sale, purchase, or disclosure). 

(iii) In issuing the regulations described in clause (i) pursuant to 

the provisions of subparagraph (C)(x)(VIII) of this paragraph or section 208A(b)(3)(B), the Attorney General may authorize the sale, 

purchase, or display to the general public of social security account 

numbers only after considering, among other relevant factors— 

(I) the associated cost or burden to the general public, businesses, commercial enterprises, non-profit organizations, and 

Federal, State, and local governments; and 

54 

(II) the associated benefit to the general public, businesses, 

commercial enterprises, non-profit associations, and Federal, 

State, and local governments. 

(iv) If, after considering the factors in clause (iii), the Attorney 

General authorizes, in regulations referred to in clause (iii), the sale, 

purchase, or display to the general public of social security account 

numbers, the Attorney General shall impose restrictions and conditions on the sale, purchase, or display to the general public to the 

extent necessary— 

(I) to provide reasonable assurances that social security account numbers will not be used to commit or facilitate fraud, 

deceptions, or crime, and 

(II) to prevent an unreasonable risk of identity theft or bodily, 

emotional, or financial harm to any individual, considering the 

nature, likelihood, and severity of the anticipated harm that 

could result from the sale, purchase, or display to the general 

public of social security account numbers, together with the nature, likelihood, and extent of any benefits that could be realized. 

(v) In the issuance of regulations pursuant to this subparagraph, 

notice shall be provided as described in paragraphs (1), (2), and (3) 

of section 553(b) of title 5, United States Code, and opportunity to 

participate in the rule making shall be provided in accordance with 

section 553(c) of such title. 

(vi) Each agency and instrumentality exercising authority to issue 

regulations under this subparagraph shall consult and coordinate 

with the other such agencies and instrumentalities for the purposes 

of assuring, to the extent possible, that the regulations prescribed by 

each such agency or instrumentality are consistent and comparable, 

as appropriate, with the regulations prescribed by the other such 

agencies and instrumentalities. The Attorney General shall undertake to facilitate such consultation and coordination. 

(vii) For purposes of this subparagraph, the terms ‘‘sell’’, ‘‘purchase’’, and ‘‘display to the general public’’ shall have the meanings 

provided such terms under subparagraph (C)(x) of this paragraph 

or under section 208A(a), as applicable. 

(viii) For purposes of this subparagraph, subparagraph (C)(x)(XI) 

shall apply. 

* * * * * * * 

PENALTIES

SEC. 208. (a) Whoever— 

(1) * * * 

* * * * * * * 

(7) for the purpose of causing an increase in any payment 

authorized under this title (or any other program financed in 

whole or in part from Federal funds), or for the purpose of 

causing a payment under this title (or any such other program) 

to be made when no payment is authorized thereunder, or for 

the purpose of obtaining (for himself or any other person) any 

payment or any other benefit to which he (or such other person) is not entitled, or for the purpose of obtaining anything of 

value from any person, or for any other purpose— 

55 

(A) * * * 

* * * * * * * 

(D) with intent to deceive, discloses, sells, or transfers his 

own social security account number, assigned to him by the 

Commissioner of Social Security (in the exercise of the 

Commissioner’s authority under section 205(c)(2) to establish and maintain records), to any person; or 

(8) discloses, uses, or compels the disclosure of the social security number of any person in violation of the laws of the 

United States; or 

(9) without lawful authority, offers, for a fee, to acquire for 

any individual, or to assist in acquiring for any individual, an 

additional social security account number or a number that 

purports to be a social security account number; or 

(10) being an officer or employee of any executive, legislative, 

or judicial agency or instrumentality of the Federal Government 

or of a State or political subdivision thereof (or a person acting 

as an agent of such an agency or instrumentality), willfully acts 

or fails to act so as to cause a violation of section 

205(c)(2)(C)(xi); or 

(11) being an officer or employee of any executive, legislative, 

or judicial agency or instrumentality of the Federal Government 

or of a State or political subdivision thereof (or a person acting 

as an agent of such an agency or instrumentality) in possession 

of any individual’s social security account number (or an officer 

or employee thereof or a person acting as an agent thereof), willfully acts or fails to act so as to cause a violation of clause 

(vi)(II), (x), (xi), (xii), (xiii), or (xiv) of section 205(c)(2)(C); or 

(12) being a trustee appointed in a case under title 11, United 

States Code (or an officer or employee thereof or a person acting 

as an agent thereof), willfully acts or fails to act so as to cause 

a violation of clause (x), (xi), or (xiv) of section 205(c)(2)(C); 

shall be guilty of a felony and upon conviction thereof øshall be 

fined under title 18, United States Code, or imprisoned for not 

more than five years, or both.¿ shall be fined, imprisoned, or both, 

as provided in subsection (b). 

(b) A person convicted of a violation described in subsection (a) 

shall be— 

(1) fined under title 18, United States Code, or imprisoned for 

not more than 5 years, or both, in the case of an initial violation, subject to paragraphs (3) and (4), 

(2) fined under title 18, United States Code, or imprisoned for 

not more than 10 years, or both, in the case of a violation which 

occurs after a prior conviction for another offense under subsection (a) becomes final, subject to paragraphs (3) and (4), 

(3) fined under title 18, United States Code, or imprisoned for 

not more than 20 years, in the case of a violation which is committed to facilitate a drug trafficking crime (as defined in section 929(a)(2) of title 18, United States Code) or in connection 

with a crime of violence (as defined in section 924(c)(3) of title 

18, United States Code), subject to paragraph (4), and 

(4) fined under title 18, United States Code, or imprisoned for 

not more than 25 years, in the case of a violation which is committed to facilitate an act of international or domestic terrorism 

56 

(as defined in paragraphs (1) and (5), respectively, of section 

2331 of title 18, United States Code). 

ø(b)¿ (c)(1) * * * 

* * * * * * * 

ø(c) Any person or other entity who is convicted of a violation of 

any of the provisions of this section, if such violation is committed 

by such person or entity in his role as, or in applying to become, 

a certified payee under section 205(j) on behalf of another individual (other than such person’s spouse), upon his second or any 

subsequent such conviction shall, in lieu of the penalty set forth in 

the preceding provisions of this section, be guilty of a felony and 

shall be fined under title 18, United States Code, or imprisoned for 

not more than five years, or both.¿ 

* * * * * * * 

PROHIBITION OF THE SALE, PURCHASE, AND DISPLAY TO THE GENERAL

PUBLIC OF THE SOCIAL SECURITY ACCOUNT NUMBER IN THE PRIVATE SECTOR

Definitions 

SEC. 208A. (a) For purposes of this section: 

(1) PERSON.— (A) IN GENERAL.—Subject to subparagraph (B), the term 

‘‘person’’ means any individual, partnership, corporation, 

trust, estate, cooperative, association, or any other entity. 

(B) GOVERNMENTAL ENTITIES.—Such term does not include a governmental entity. Nothing in this subparagraph 

shall be construed to authorize, in connection with a governmental entity, an act or practice otherwise prohibited 

under this section or section 205(c)(2)(C). 

(2) SELLING AND PURCHASING.— (A) IN GENERAL.—Subject to subparagraph (B)— 

(i) SELL.—The term ‘‘sell’’ in connection with a social 

security account number means to obtain, directly or 

indirectly, anything of value in exchange for such number. 

(ii) PURCHASE.—The term ‘‘purchase’’ in connection 

with a social security account number means to provide, directly or indirectly, anything of value in exchange for such number. 

(B) EXCEPTIONS.—The terms ‘‘sell’’ and ‘‘purchase’’ in 

connection with a social security account number do not include the submission of such number as part of— 

(i) the process for applying for any type of Government benefits or programs (such as grants or loans or 

welfare or other public assistance programs), 

(ii) the administration of, or provision of benefits 

under, an employee benefit plan, or 

(iii) the sale, lease, merger, transfer, or exchange of 

a trade or business. 

(3) DISPLAY TO THE GENERAL PUBLIC.— 

(A) IN GENERAL.—The term ‘‘display to the general public’’ means, in connection with a social security account 

number, to intentionally place such number in a viewable 

57 

manner on an Internet site that is available to the general 

public or to make such number available in any other manner intended to provide access to such number by the general public. 

(B) INTERNET TRANSMISSIONS.—In any case in which a 

person requires, as a condition of doing business with such 

person, transmittal to such person of an individual’s social 

security account number by means of the Internet without 

reasonable provisions to ensure that such number is 

encrypted or otherwise secured from disclosure, any such 

transmittal of such number as so required shall be treated 

as a ‘‘display to the general public’’ of such number by such 

person. 

(4) SOCIAL SECURITY ACCOUNT NUMBER.—The term ‘‘social security account number’’ has the meaning given such term in 

section 208(c), except that such term includes any derivative of 

such number. Notwithstanding the preceding sentence, any expression, contained in or on any item sold or displayed to the 

general public, shall not be treated as a social security account 

number solely because such expression sets forth not more than 

the last 4 digits of such number, if the remainder of such number cannot be determined based solely on such expression or any 

other matter presented in or on such item. 

Prohibition of Sale, Purchase, and Display to the General Public 

(b)(1) Except as provided in paragraph (2), it shall be unlawful 

for any person to— 

(A) sell or purchase a social security account number or display to the general public a social security account number, or 

(B) obtain or use any individual’s social security account 

number for the purpose of locating or identifying such individual with the intent to physically injure or harm such individual or using the identity of such individual for any illegal 

purpose. 

(2) Notwithstanding paragraph (1), and subject to paragraph (3), 

a social security account number may be sold or purchased by any 

person to the extent provided in this subsection (and for no other 

purpose) as follows: 

(A) to the extent necessary for law enforcement, including (but 

not limited to) the enforcement of a child support obligation, as 

determined under regulations issued as provided in section 

205(c)(2)(I); 

(B) to the extent necessary for national security purposes, as 

determined under regulations issued as provided in section 

205(c)(2)(I); 

(C) to the extent necessary for public health purposes; 

(D) to the extent necessary in emergency situations to protect 

the health or safety of 1 or more individuals; 

(E) to the extent that the sale or purchase is required to comply with a tax law of the United States or of any State (or political subdivision thereof); 

(F) to the extent that the sale or purchase is to or by a consumer reporting agency (as defined in section 603(f) of the Fair 

Credit Reporting Act (15 U.S.C. 1681a(f))) for use or disclosure 

58 

solely for permissible purposes described in section 604(a) of 

such Act (15 U.S.C. 1681b(a)); and 

(G) to the extent necessary for research (other than market research) conducted by an agency or instrumentality of the United 

States or of a State or political subdivision thereof (or an agent 

of such an agency or instrumentality) for the purpose of advancing the public good, on the condition that the researcher provides adequate assurances that— 

(i) the social security account numbers will not be used 

to harass, target, or publicly reveal information concerning 

any identifiable individuals; 

(ii) information about identifiable individuals obtained 

from the research will not be used to make decisions that 

directly affect the rights, benefits, or privileges of specific 

individuals; and 

(iii) the researcher has in place appropriate safeguards to 

protect the privacy and confidentiality of any information 

about identifiable individuals, including procedures to ensure that the social security account numbers will be 

encrypted or otherwise appropriately secured from unauthorized disclosure. 

(3) Notwithstanding paragraph (1), a social security account 

number assigned to an individual may be sold, purchased, or displayed to the general public by any person— 

(A) to the extent consistent with such individual’s voluntary 

and affirmative written consent to the sale, purchase, or display 

of the social security account number, but only if— 

(i) the terms of the consent and the right to refuse consent 

are presented to the individual in a clear, conspicuous, and 

understandable manner, 

(ii) the individual is placed under no obligation to provide consent to any such sale, purchase, or display, and 

(iii) the terms of the consent authorize the individual to 

limit the sale, purchase, or display to purposes directly associated with the transaction with respect to which the consent is sought, and 

(B) under such circumstances as may be deemed appropriate 

in regulations issued as provided under section 205(c)(2)(I). 

(4) In the case of social security account numbers which constitute 

personally identifiable medical information— 

(A) the Commissioner of Social Security, with respect to medical research referred to in paragraph (3)(A), and 

(B) the Attorney General of the United States, with respect to 

any medical research not referred to in paragraph (3)(A) but 

which is treated in regulations of the Attorney General issued 

pursuant to paragraph (3)(B), 

shall maintain ongoing consultation with the Office for Civil Rights 

of the Department of Health and Human Services to ensure that the 

sale or purchase of such social security account numbers is permitted only in compliance with existing Federal rules and regulations prescribed by the Secretary of Health and Human Services 

pursuant to section 264(c) of the Health Insurance Portability and 

Accountability Act of 1996 (110 Stat. 2033). 

59 

Prohibition of Unauthorized Disclosure to Government Agencies or 

Instrumentalities 

(c)(1) It shall be unlawful for any person to communicate by any 

means to any agency or instrumentality of the United States or of 

any State or political subdivision thereof the social security account 

number of any individual other than such person without the written permission of such individual, unless the number was requested 

by the agency or instrumentality. In the case of an individual who 

is legally incompetent, permission provided by the individual’s legal 

representatives shall be deemed to be permission provided by such 

individual. 

(2) Paragraph (1) shall not apply to the extent necessary— 

(A) for law enforcement, including (but not limited to) the enforcement of a child support obligation, or 

(B) for national security purposes, 

as determined under regulations issued as provided under section 

205(c)(2)(I). 

Prohibition of the Displays on Cards or Tags Required for Access 

to Goods, Services, or Benefits 

(d) No person may display a social security account number on 

any card or tag issued to any other person for the purpose of providing such other person access to any goods, services, or benefits 

or include on such card or tag a magnetic strip, bar code, or other 

means of communication which conveys such number. 

Prohibition of the Displays on Employee Identification Cards or 

Tags 

(e) No person that is an employer, and no other person offering 

benefits in connection with an employee benefit plan maintained by 

such employer or acting as an agent of such employer, may display 

a social security account number on any card or tag that is commonly provided to employees of such employer (or to their family 

members) for purposes of identification or include on such card or 

tag a magnetic strip, bar code, or other means of communication 

which conveys such number. 

Measures to Preclude Unauthorized Disclosure of Social Security 

Account Numbers and Protect the Confidentiality of Such Numbers 

(f) Subject to the preceding provisions of this section, any person 

having in such person’s records the social security account number 

of any individual other than such person shall, to the extent that 

such records are maintained for the conduct of such person’s trade 

or business— 

(1) ensure that no officer or employee thereof has access to 

such number for any purpose other than as necessary for the 

conduct of such person’s trade or business, 

(2) restrict, in accordance with regulations of the Commissioner, access to social security account numbers obtained thereby to officers and employees thereof whose duties or responsibilities require access for the conduct of such person’s trade or 

business, and 

60 

(3) provide such safeguards as may be specified, in regulations of the Commissioner, to be necessary or appropriate to preclude unauthorized access to the social security account number 

and to otherwise protect the confidentiality of such number. 

Deceased Individuals 

(g) This section does not apply with respect to the social security 

account number of a deceased individual. 

Criminal Penalty 

(h) Any person who violates this section shall be guilty of a felony 

and upon conviction thereof shall be fined under title 18, United 

States Code, or imprisoned for not more than 5 years, or both. 

Applicability of Other Protections 

(i) Nothing in this section shall be construed to supersede, alter, 

or affect any restriction or limitation on the sale, purchase, display 

to the general public, or other disclosure of social security account 

numbers, provided in any Federal statute, regulation, order, or interpretation, if the restriction or limitation is greater than that provided under this section, as determined under applicable regulations issued by the Commissioner of Social Security or by the Attorney General of the United States or another agency or instrumentality of the United States as provided in section 205(c)(2)(I). 

FRAUD BY SOCIAL SECURITY ADMINISTRATION EMPLOYEES

SEC. 208B. (a) Whoever is an employee of the Social Security Administration and knowingly and fraudulently sells or transfers one 

or more social security account numbers or social security cards 

shall be guilty of a felony and upon conviction thereof shall be fined 

under title 18, United States Code, imprisoned as provided in subsection (b), or both. 

(b) Imprisonment for a violation described in subsection (a) shall 

be for— 

(1) not less than 1 year and up to 5 years, in the case of an employee of the Social Security Administration who has fraudulently 

sold or transferred not more than 50 social security account numbers or social security cards, 

(2) not less than 5 years and up to 10 years, in the case of an employee of the Social Security Administration who has fraudulently 

sold or transferred more than 50, but not more than 100, social security account numbers or social security cards, or 

(3) not less than 10 years and up to 20 years, in the case of an 

employee of the Social Security Administration who has fraudulently sold or transferred more than 100 social security account 

numbers or social security cards. 

(c) For purposes of this section— 

(1) The term ‘‘social security employee’’ means any State employee of a State disability determination service, any officer, 

employee, or contractor of the Social Security Administration, 

any employee of such a contractor, or any volunteer providing 

services or assistance in any facility of the Social Security Administration. 

61 

(2) The term ‘‘social security account number’’ means a social 

security account number assigned by the Commissioner of Social Security under section 205(c)(2)(B) or another number that 

has not been so assigned but is purported to have been so assigned. 

(3) The term ‘‘social security card’’ means a card issued by the 

Commissioner of Social Security under section 205(c)(2)(G), another card which has not been so issued but is purported to 

have been so issued, and banknote paper of the type described 

in section 205(c)(2)(G) prepared for the entry of social security 

account numbers, whether fully completed or not. 

(d) Any employee of the Social Security Administration who attempts or conspires to commit any violation of this section shall be 

subject to the same penalties as those prescribed for the violation the 

commission of which was the object of the attempt or conspiracy. 

* * * * * * * 

TITLE VIII—SPECIAL BENEFITS FOR 

CERTAIN WORLD WAR II VETERANS 

* * * * * * * 

SEC. 811. PENALTIES FOR FRAUD. 

(a) IN GENERAL.—Whoever— 

(1) * * * 

* * * * * * * 

øshall be fined under title 18, United States Code, imprisoned not 

more than 5 years, or both.¿ shall be fined, imprisoned, or both, as 

provided in subsection (b). 

(b) PUNISHMENT.—A person convicted of a violation described in 

subsection (a) shall be— 

(1) fined under title 18, United States Code, or imprisoned for 

not more than 5 years, or both, in the case of an initial violation, subject to paragraphs (3) and (4), 

(2) fined under title 18, United States Code, or imprisoned for 

not more than 10 years, or both, in the case of a violation which 

occurs after a prior conviction for another offense under subsection (a) becomes final, subject to paragraphs (3) and (4), 

(3) fined under title 18, United States Code, or imprisoned for 

not more than 20 years, in the case of a violation which is committed to facilitate a drug trafficking crime (as defined in section 929(a)(2) of title 18, United States Code) or in connection 

with a crime of violence (as defined in section 924(c)(3) of title 

18, United States Code), subject to paragraph (4), and 

(4) fined under title 18, United States Code, or imprisoned for 

not more than 25 years, in the case of a violation which is committed to facilitate an act of international or domestic terrorism 

(as defined in paragraphs (1) and (5), respectively, of section 

2331 of title 18, United States Code). 

ø(b)¿ (c) COURT ORDER FOR RESTITUTION.— 

(1) * * * 

* * * * * * * 

62 

TITLE XI—GENERAL PROVISIONS, PEER REVIEW, AND 

ADMINISTRATIVE SIMPLIFICATION 

* * * * * * * 

SEC. 1129. CIVIL MONETARY PENALTIES AND ASSESSMENTS FOR TITLES II, VIII AND XVI. 

(a)(1) Any person (including an organization, agency, or other entity) who— 

(A) * * * 

* * * * * * * 

shall be subject to, in addition to any other penalties that may be 

prescribed by law, a civil money penalty of not more than $5,000 

for each such statement or representation or each receipt of such 

benefits or payments while withholding disclosure of such fact. 

Such person also shall be subject to an assessment, in lieu of damages sustained by the United States because of such statement or 

representation or because of such withholding of disclosure of a 

material fact, of not more than twice the amount of benefits or payments paid as a result of such a statement or representation or 

such a withholding of disclosure. 

(2) In addition, the Commissioner of Social Security may make 

a determination in the same proceeding to recommend that the 

Secretary exclude, as provided in section 1128, such a person who 

is a medical provider or physician from participation in the programs under title XVIII. 

(3) Any person (including an organization, agency, or other entity) 

who— 

(A) uses a social security account number that such person 

knows or should know has been assigned by the Commissioner 

of Social Security (in an exercise of authority under section 

205(c)(2) to establish and maintain records) on the basis of 

false information furnished to the Commissioner by any person; 

(B) falsely represents a number to be the social security account number assigned by the Commissioner of Social Security 

to any individual, when such person knows or should know 

that such number is not the social security account number assigned by the Commissioner to such individual; 

(C) knowingly alters a social security card issued by the Commissioner of Social Security, or possesses such a card with intent to alter it; 

(D) knowingly buys or sells a card that is, or purports to be, 

a card issued by the Commissioner of Social Security, or possesses such a card with intent to buy or sell it; 

(E) counterfeits a social security card, or possesses a counterfeit social security card with intent to buy or sell it; 

(F) discloses, uses, compels the disclosure of, or knowingly 

sells or purchases the social security account number of any 

person in violation of the laws of the United States; 

(G) with intent to deceive the Commissioner of Social Security 

as to such person’s true identity (or the true identity of any 

other person), furnishes or causes to be furnished false information to the Commissioner with respect to any information required by the Commissioner in connection with the establishment and maintenance of the records provided for in section 

205(c)(2); 

63 

(H) without lawful authority, offers, for a fee, to acquire for 

any individual, or to assist in acquiring for any individual, an 

additional social security account number or a number which 

purports to be a social security account number; 

(I) with intent to deceive, discloses, sells, or transfers his own 

social security account number, assigned to him by the Commissioner of Social Security under section 205(c)(2)(B), to any person; 

(J) being an officer or employee of any executive, legislative, 

or judicial agency or instrumentality of the Federal Government 

or of a State or political subdivision thereof (or a person acting 

as an agent of such an agency or instrumentality), in possession 

of any individual’s social security account number, willfully 

acts or fails to act so as to cause a violation of clause (vi)(II), 

(x), (xi), (xii), (xiii), or (xiv) of section 205(c)(2)(C); 

(K) being a trustee appointed in a case under title 11, United 

States Code (or an officer or employee thereof or a person acting 

as an agent thereof), willfully acts or fails to act so as to cause 

a violation of clause (x), (xi), or (xiv) of section 205(c)(2)(C); 

(L) violates section 208A (relating to prohibition of the sale, 

purchase, or display of the social security account number in 

the private sector); or 

(M) violates section 208B (relating to fraud by social security 

administration employees); 

shall be subject to, in addition to any other penalties that may be 

prescribed by law, a civil money penalty of not more than $5,000 

for each violation. Such person shall also be subject to an assessment, in lieu of damages sustained by the United States resulting 

from such violation, of not more than twice the amount of any benefits or payments paid as a result of such violation. 

ø(2)¿ (4) For purposes of this section, a material fact is one which 

the Commissioner of Social Security may consider in evaluating 

whether an applicant is entitled to benefits under title II or title 

VIII, or eligible for benefits or payments under title XVI. 

ø(3)¿ (5) Any person (including an organization, agency, or other 

entity) who, having received, while acting in the capacity of a representative payee pursuant to section 205(j), 807, or 1631(a)(2), a 

payment under title II, VIII, or XVI for the use and benefit of another individual, converts such payment, or any part thereof, to a 

use that such person knows or should know is other than for the 

use and benefit of such other individual shall be subject to, in addition to any other penalties that may be prescribed by law, a civil 

money penalty of not more than $5,000 for each such conversion. Such person shall also be subject to an assessment, in lieu of 

damages sustained by the United States resulting from the conversion, of not more than twice the amount of any payments so converted. 

* * * * * * * 

TITLE XVI—SUPPLEMENTAL SECURITY INCOME FOR THE 

AGED, BLIND, AND DISABLED 

* * * * * * * 

64 

PART B—PROCEDURAL AND GENERAL PROVISIONS

* * * * * * * 

PENALTIES FOR FRAUD

SEC. 1632. (a) Whoever— 

(1) * * * 

* * * * * * * 

øshall be fined under title 18, United States Code, imprisoned not 

more than 5 years, or both.¿ shall be fined, imprisoned, or both, as 

provided in subsection (b). 

(b) A person convicted of a violation described in subsection (a) 

shall be— 

(1) fined under title 18, United States Code, or imprisoned for 

not more than 5 years, or both, in the case of an initial violation, subject to paragraphs (3) and (4), 

(2) fined under title 18, United States Code, or imprisoned for 

not more than 10 years, or both, in the case of a violation which 

occurs after a prior conviction for another offense under subsection (a) becomes final, subject to paragraphs (3) and (4), 

(3) fined under title 18, United States Code, or imprisoned for 

not more than 20 years, in the case of a violation which is committed to facilitate a drug trafficking crime (as defined in section 929(a)(2) of title 18, United States Code) or in connection 

with a crime of violence (as defined in section 924(c)(3) of title 

18, United States Code), subject to paragraph (4), and 

(4) fined under title 18, United States Code, or imprisoned for 

not more than 25 years, in the case of a violation which is committed to facilitate an act of international or domestic terrorism 

(as defined in paragraphs (1) and (5), respectively, of section 

2331 of title 18, United States Code). 

ø(b)¿ (c)(1) Any Federal court, when sentencing a defendant convicted of an offense under subsection (a), may order, in addition to 

or in lieu of any other penalty authorized by law, that the defendant make restitution to the Commissioner of Social Security, in any 

case in which such offense results in— 

(A) * * * 

* * * * * * * 

ø(c)¿ (d) Any person or entity convicted of a violation of subsection (a) of this section or of section 208 may not be certified as 

a representative payee under section 1631(a)(2). 

* * * * * * * 

SECTION 603 OF THE FAIR CREDIT REPORTING ACT 

§ 603. Definitions and rules of construction 

(a) * * * 

* * * * * * * 

(q) CONFIDENTIAL TREATMENT OF CREDIT HEADER INFORMATION.—Information regarding the social security account number of 

the consumer, or any derivative thereof, may not be furnished to any 

person by a consumer reporting agency other than in a full conVerDate Aug 04 2004 00:47 Sep 16, 2004 Jkt 029006 PO 00000 Frm 00064 Fmt 6659 Sfmt 6603 E:\HR\OC\HR685P1.XXX HR685P1
65 

sumer report furnished in accordance with section 604 and other requirements of this title. 

Æ