II

107TH CONGRESS

1ST SESSION S. 1014

To amend the Social Security Act to enhance privacy protections for individuals, to prevent fraudulent misuse of the Social Security account number,

and for other purposes.

IN THE SENATE OF THE UNITED STATES

JUNE 12, 2001

Mr. BUNNING (for himself and Mr. HARKIN) introduced the following bill;

which was read twice and referred to the Committee on Finance

A BILL

To amend the Social Security Act to enhance privacy protections for individuals, to prevent fraudulent misuse of

the Social Security account number, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Social Security Number Privacy and Identity Theft Pre6 vention Act of 2001’’.

7 (b) TABLE OF CONTENTS.—The table of contents is

8 as follows:
2

•S 1014 IS

Sec. 1. Short title and table of contents.

Sec. 2. Findings.

TITLE I—PROVISIONS RELATING TO THE SOCIAL SECURITY

ACCOUNT NUMBER IN THE PUBLIC SECTOR

Sec. 101. Restrictions on the sale of social security account numbers by governmental agencies.

Sec. 102. Prohibition of the display to the general public of social security account numbers possessed by governmental agencies.

Sec. 103. Prohibition of the display of social security account numbers on

checks issued for payment by governmental agencies.

Sec. 104. Prohibition of the appearance of social security account numbers on

driver’s licenses or motor vehicle registrations.

Sec. 105. Prohibition of the display by governmental agencies of personal identification numbers.

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

Sec. 107. Independent verification of birth records provided in support of applications for social security account numbers.

TITLE II—PROVISIONS RELATING TO THE SOCIAL SECURITY

ACCOUNT NUMBER IN THE PRIVATE SECTOR

Sec. 201. Prohibition of the sale, purchase, or display of the social security account number in the private sector.

Sec. 202. Refusal to do business without receipt of social security account number considered unfair or deceptive act or practice.

Sec. 203. Confidential treatment of credit header information.

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. Authority for judicial orders of restitution.

1 SEC. 2. FINDINGS.

2 The Congress makes the following findings:

3 (1) A unique series of nine numbers assigned to

4 most individuals, the Social Security account num5 ber was created in 1936 for the sole purpose of

6 tracking workers’ earnings so that Social Security

7 benefits could be calculated upon retirement or dis8 ability.
3

•S 1014 IS

1 (2) As a result of its uniqueness, expanded use

2 of the Social Security account number has occurred

3 in the public and private sectors.

4 (3) Expanded Federal use of the Social Secu5 rity account number was first mandated by Presi6 dent Roosevelt in 1943 with Executive Order 9397,

7 requiring that any Federal department establishing

8 a new system of permanent account numbers per9 taining to an individual must utilize the Social Secu10 rity account number exclusively, and that such per11 sonal information must be kept confidential.

12 (4) Today, the Federal Government requires

13 virtually every individual in the United States to ob14 tain and maintain a Social Security account number

15 in order to pay taxes, to qualify for Social Security

16 benefits, or to seek employment. An unintended con17 sequence of these requirements is that Social Secu18 rity account numbers have become tools that can be

19 used to facilitate crime, fraud, and invasions of the

20 privacy of the individuals to whom the numbers are

21 assigned. Because the Federal Government created

22 and maintains this system, and because the Federal

23 Government does not permit persons to exempt

24 themselves from those requirements, it is appro-
4

•S 1014 IS

1 priate for the Government to take steps to stem the

2 abuse of this system.

3 (5) In the private sector, use of the Social Se4 curity account number as a personal identifier has

5 grown substantially. Many businesses require a So6 cial Security account number prior to providing serv7 ices or goods.

8 (6) However, under some current business prac9 tices, an individual may lose control over the further

10 sale or transfer of the Social Security account num11 ber by the entity provided the number. An individ12 ual’s Social Security account number may be sold or

13 transferred without the individual’s knowledge or

14 permission.

15 (7) Today, the Social Security account number

16 is generally regarded as the single-most widely used

17 record identifier by both government and private

18 sectors within the United States.

19 (8) However, a Social Security account number

20 is simply a sequence of numbers. In no meaningful

21 sense can the number itself impart knowledge or

22 ideas. Persons do not sell or transfer such numbers

23 in order to convey any particularized message, nor

24 to express to the purchaser any ideas, knowledge, or

25 thoughts.
5

•S 1014 IS

1 (9) A Social Security account number does not

2 contain, reflect, or convey any publicly significant in3 formation or concern any public issue. The sale of

4 such numbers in no way facilitates uninhibited, ro5 bust and wide-open public debate; and restrictions

6 on such sale would not affect public debate.

7 (10) No one should seek to profit from the sale

8 of Social Security account numbers in circumstances

9 that create a substantial risk of physical, emotional,

10 or financial harm to the individuals to whom those

11 numbers are assigned.

12 (11) The prevalence of the use of the Social Se13 curity account number and the ease by which indi14 viduals can obtain another person’s Social Security

15 account number have raised serious concerns over

16 privacy and opportunities for fraud.

17 (12) Social Security cards may be counterfeited

18 for illegal aliens, and individuals use false Social Se19 curity account number information to improperly

20 apply for and receive benefits under Federal and

21 State programs.

22 (13) Misuse of the Social Security account

23 number is a central component of identity theft, con24 sidered the fastest growing financial crime in the
6

•S 1014 IS

1 country. It is estimated that identity theft affects

2 upwards of 700,000 individuals per year.

3 (14) The results of identity theft are stag4 gering. Victims spend years and many dollars clear5 ing up their good name and contesting charges they

6 never authorized. It is estimated that in 1997, mon7 etary losses associated with identity theft was ap8 proximately $745,000,000.

9 (15) Growing concern over fraud and privacy

10 and the absence of a comprehensive Federal law reg11 ulating the use of Social Security account numbers

12 prompt the need for the Congress to act.

13 TITLE I—PROVISIONS RELATING

14 TO THE SOCIAL SECURITY AC15 COUNT NUMBER IN THE PUB16 LIC SECTOR

17 SEC. 101. RESTRICTIONS ON THE SALE OF SOCIAL SECU18 RITY ACCOUNT NUMBERS BY GOVERN19 MENTAL AGENCIES.

20 (a) IN GENERAL.—Section 205(c)(2)(C) of the Social

21 Security Act (42 U.S.C. 405(c)(2)(C)) is amended by add22 ing at the end the following new clause:

23 ‘‘(x) No executive, legislative, or judicial agency or

24 instrumentality of the Federal Government or of a State

25 or a political subdivision thereof or trustee appointed in
7

•S 1014 IS

1 a case under title 11, United States Code (or person act2 ing as an agent of such an agency or instrumentality or

3 trustee), in possession of any individual’s social security

4 account number may accept an item of material value in

5 exchange for such number, or any derivative thereof. Not6 withstanding the preceding sentence, such number (or de7 rivative) may be made available or disclosed in such an

8 exchange in accordance with the following exceptions (and

9 for no other purpose):

10 ‘‘(I) Such number (or derivative) may be dis11 closed in such an exchange by a State department

12 of motor vehicles as authorized under subsection (b)

13 of section 2721 of title 18, United States Code, if

14 such disclosed number (or derivative) is to be used

15 solely for the purposes permitted under paragraph

16 (1), (6) or (9) of such subsection.

17 ‘‘(II) Such number (or derivative) may be made

18 available in such an exchange to a consumer report19 ing agency, as defined in section 603(f) of the Fair

20 Credit Reporting Act (15 U.S.C. 1681a(f)), exclu21 sively for use in accordance with such Act.

22 ‘‘(III) Such number (or derivative) may be dis23 closed in such an exchange to the extent that is nec24 essary or appropriate for law enforcement or na25 tional security purposes, as determined under regu-
8

•S 1014 IS

1 lations which shall be issued by the Attorney Gen2 eral of the United States.

3 ‘‘(IV) Such an exchange may occur to the ex4 tent it is otherwise specifically authorized by this

5 Act.’’.

6 (b) EFFECTIVE DATE.—The amendment made by

7 this section shall apply with respect to violations occurring

8 after 3 years after the date of the enactment of this Act.

9 SEC. 102. PROHIBITION OF THE DISPLAY TO THE GENERAL

10 PUBLIC OF SOCIAL SECURITY ACCOUNT NUM11 BERS POSSESSED BY GOVERNMENTAL AGEN12 CIES.

13 (a) IN GENERAL.—Section 205(c)(2)(C) of the Social

14 Security Act (42 U.S.C. 405(c)(2)(C)) (as amended by

15 section 101) is amended further by adding at the end the

16 following new clause:

17 ‘‘(xi)(I) No executive, legislative, or judicial agency

18 or instrumentality of the Federal Government or of a

19 State or a political subdivision thereof or trustee appointed

20 in a case under title 11, United States Code (or person

21 acting as an agent of such an agency or instrumentality

22 or trustee), may display to the general public any individ23 ual’s social security account number, or any derivative of

24 such number. Notwithstanding the preceding sentence,

25 such number (or derivative) may be so displayed in accord-
9

•S 1014 IS

1 ance with the exceptions specified in subclauses (II) and

2 (III) (and for no other purpose).

3 ‘‘(II) Such number (or derivative) may be so dis4 played to a consumer reporting agency, as defined in sec5 tion 603(f) of the Fair Credit Reporting Act (15 U.S.C.

6 1681a(f)), exclusively for use in accordance with such Act.

7 ‘‘(III) Such number (or derivative) may be so dis8 played to the extent that is necessary or appropriate for

9 law enforcement or national security purposes, as deter10 mined under regulations which shall be issued by the At11 torney General of the United States.

12 ‘‘(IV) For purposes of this clause, the term ‘display

13 to the general public’ in connection with a social security

14 account number, or a derivative thereof, means the inten15 tional placing of such number or derivative in a viewable

16 manner on an Internet site that is available to the general

17 public or in any other manner intended to provide access

18 to such number or derivative by the general public. Each

19 such agency or instrumentality or trustee shall ensure that

20 access to such numbers, and any derivative of such num21 bers, is restricted to persons who may obtain them in ac22 cordance with this clause and other applicable law.’’.

23 (b) EFFECTIVE DATE.—Agencies and instrumental24 ities and trustees (and agents thereof) shall comply with

25 the requirements of clause (xi) of section 205(c)(2)(C) of
10

•S 1014 IS

1 the Social Security Act (added by this section) as soon

2 as practicable after the date of the enactment of this Act.

3 Such clause (xi) shall apply with respect to all displays

4 originally occurring after 3 years after the date of the en5 actment of this Act.

6 SEC. 103. PROHIBITION OF THE DISPLAY OF SOCIAL SECU7 RITY ACCOUNT NUMBERS ON CHECKS

8 ISSUED FOR PAYMENT BY GOVERNMENTAL

9 AGENCIES.

10 (a) IN GENERAL.—Section 205(c)(2)(C) of the Social

11 Security Act (42 U.S.C. 405(c)(2)(C)) (as amended by the

12 preceding provisions of this title) is amended further by

13 adding at the end the following new clause:

14 ‘‘(xii) No executive, legislative, or judicial agency or

15 instrumentality of the Federal Government or of a State

16 or a political subdivision thereof or trustee appointed in

17 a case under title 11, United States Code (or person act18 ing as an agent of such an agency or instrumentality or

19 trustee), may include the social security account number

20 of any individual on any check issued for any payment

21 by the Federal Government, any State or political subdivi22 sion thereof, or any agency or instrumentality thereof, or

23 such trustee or on any document attached to or accom24 panying such a check.’’.
11

•S 1014 IS

1 (b) EFFECTIVE DATE.—The amendment made by

2 this section shall apply with respect to violations occurring

3 after 3 years after the date of the enactment of this Act.

4 SEC. 104. PROHIBITION OF THE APPEARANCE OF SOCIAL

5 SECURITY ACCOUNT NUMBERS ON DRIVER’S

6 LICENSES OR MOTOR VEHICLE REGISTRA7 TIONS.

8 (a) IN GENERAL.—Section 205(c)(2)(C)(vi) of the

9 Social Security Act (42 U.S.C. 405(c)(2)(C)(vi)) is

10 amended—

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

12 (2) by adding at the end the following new sub13 clause:

14 ‘‘(II) A State or political subdivision thereof (and any

15 person acting as an agent of such an agency or instrumen16 tality), in the administration of any driver’s license or

17 motor vehicle registration law within its jurisdiction, may

18 not disclose the social security account numbers issued by

19 the Commissioner of Social Security, or any derivative of

20 such numbers, on any driver’s license or motor vehicle reg21 istration or any other document issued by such State or

22 political subdivision to an individual for purposes of identi23 fication of such individual.’’.

24 (b) EFFECTIVE DATE.—The amendments made by

25 this section shall apply with respect to licenses, registra-
12

•S 1014 IS

1 tions, and other documents issued or reissued after 3

2 years after the date of the enactment of this Act.

3 SEC. 105. PROHIBITION OF THE DISPLAY BY GOVERN4 MENTAL AGENCIES OF PERSONAL IDENTI5 FICATION NUMBERS.

6 (a) IN GENERAL.—Section 205(c)(2)(C) of the Social

7 Security Act (42 U.S.C. 405(c)(2)(C)) (as amended by the

8 preceding provisions of this title) is amended further by

9 adding at the end the following new clause:

10 ‘‘(xiii) No executive, legislative, or judicial agency or

11 instrumentality of the Federal Government or of a State

12 or political subdivision thereof (or person acting as an

13 agent of such an agency or instrumentality) may display

14 the social security account number, or any derivative of

15 such number, on any card or tag that is commonly pro16 vided to employees for purposes of identification and that

17 is to be maintained for continual, open display by the em18 ployees.’’.

19 (b) EFFECTIVE DATE.—The amendment made by

20 this section shall apply with respect to violations occurring

21 after 3 years after the date of the enactment of this Act.

22 SEC. 106. PROHIBITION OF INMATE ACCESS TO SOCIAL SE23 CURITY ACCOUNT NUMBERS.

24 (a) IN GENERAL.—Section 205(c)(2)(C) of the Social

25 Security Act (42 U.S.C. 405(c)(2)(C)) (as amended by the
13

•S 1014 IS

1 preceding provisions of this title) is amended further by

2 adding at the end the following new clause:

3 ‘‘(xiv) No executive, legislative, or judicial agency or

4 instrumentality of the Federal Government or of a State

5 or political subdivision thereof (or person acting as an

6 agent of such an agency or instrumentality) may employ,

7 or enter into a contract for the use or employment of, pris8 oners in any capacity that would allow such prisoners ac9 cess to the social security account numbers of other indi10 viduals. For purposes of this clause, the term ‘prisoner’

11 means an individual confined in a jail, prison, or other

12 penal institution or correctional facility pursuant to such

13 individual’s conviction of a criminal offense.’’.

14 (b) EFFECTIVE DATE.—The amendment made by

15 this section shall apply with respect to employment of pris16 oners, or entry into contract with respect to prisoners,

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

18 SEC. 107. INDEPENDENT VERIFICATION OF BIRTH

19 RECORDS PROVIDED IN SUPPORT OF APPLI20 CATIONS FOR SOCIAL SECURITY ACCOUNT

21 NUMBERS.

22 (a) IN GENERAL.—Section 205(c)(2)(B)(ii) of the

23 Social Security Act (42 U.S.C. 405(c)(2)(B)(ii)) is amend24 ed by adding at the end the following new sentence: ‘‘With

25 respect to an application for a social security account
14

•S 1014 IS

1 number for an individual other than for purposes of enu2 meration at birth, the Commissioner shall require inde3 pendent verification of any birth record provided by the

4 applicant in support of the application.’’.

5 (b) EFFECTIVE DATE.—The amendment made by

6 subsection (a) shall apply with respect to applications filed

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

8 (c) REPORT ON ENUMERATION OF ALIENS AT AD9 MISSION.—Not later than 1 year after the date of the en10 actment of this Act, the Commissioner of Social Security

11 and the Attorney General of the United States shall jointly

12 submit a report detailing the progress of the Social Secu13 rity Administration and the Immigration and Naturaliza14 tion Service in implementing a process, at the admission

15 of aliens to the United States, for enumeration of those

16 aliens who have need of a social security account number.

17 Such report shall be submitted to the Committee on Ways

18 and Means and the Committee on the Judiciary of the

19 House of Representatives and the Committee on Finance

20 and the Committee on the Judiciary of the Senate.
15

•S 1014 IS

1 TITLE II—PROVISIONS RELAT2 ING TO THE SOCIAL SECU3 RITY ACCOUNT NUMBER IN

4 THE PRIVATE SECTOR

5 SEC. 201. PROHIBITION OF THE SALE, PURCHASE, OR DIS6 PLAY OF THE SOCIAL SECURITY ACCOUNT

7 NUMBER IN THE PRIVATE SECTOR.

8 (a) IN GENERAL.—Title II of the Social Security Act

9 is amended by inserting after section 208 (42 U.S.C. 408)

10 the following new section:

11 ‘‘PROHIBITION OF THE SALE, PURCHASE, OR DISPLAY OF

12 THE SOCIAL SECURITY ACCOUNT NUMBER

13 ‘‘SEC. 208A. (a) DEFINITIONS.—In this section:

14 ‘‘(1) PERSON.—

15 ‘‘(A) IN GENERAL.—Subject to subpara16 graph (B), the term ‘person’ means any indi17 vidual, partnership, corporation, trust, estate,

18 cooperative, association, or any other entity.

19 ‘‘(B) GOVERNMENTAL ENTITIES.—Such

20 term does not include a governmental entity.

21 Nothing in this subparagraph shall be con22 strued to authorize, in connection with a gov23 ernmental entity, an act or practice otherwise

24 prohibited under this section or section

25 205(c)(2)(C).
16

•S 1014 IS

1 ‘‘(2) SALE.—The term ‘sell’ in connection with

2 a social security account number means to obtain,

3 directly or indirectly, anything of value in exchange

4 for such number. Such term does not include the

5 submission of such number as part of the process

6 for applying for any type of Government benefits or

7 programs (such as grants or loans or welfare or

8 other public assistance programs).

9 ‘‘(3) PURCHASE.—The term ‘purchase’ in con10 nection with a social security account number means

11 to provide, directly or indirectly, anything of value in

12 exchange for such number. Such term does not in13 clude the submission of such number as part of the

14 process for applying for any type of Government

15 benefit or programs (such as grant or loan applica16 tions or welfare or other public assistance pro17 grams).

18 ‘‘(4) DISPLAY.—The term ‘display’ in connec19 tion with a social security account number means

20 the intentional placing of such number, or a deriva21 tive thereof, in a viewable manner on an Internet

22 site that is available to the general public or in any

23 other manner intended to provide access to such

24 number or derivative by the general public.
17

•S 1014 IS

1 ‘‘(5) SOCIAL SECURITY ACCOUNT NUMBER.—

2 The term ‘social security account number’ has the

3 meaning given such term in section 208(c).

4 ‘‘(b) PROHIBITION.—Except as provided in sub5 section (c), it shall be unlawful for any person to—

6 ‘‘(1) sell, purchase, or display a social security

7 account number; or

8 ‘‘(2) obtain or use any individual’s social secu9 rity account number for the purpose of locating or

10 identifying such individual with the intent to phys11 ically injure or harm such individual or using the

12 identity of such individual for any illegal purpose.

13 ‘‘(c) EXCEPTIONS.—Subsection (b)(1) shall not apply

14 with respect to any sale, purchase, or display of social se15 curity account numbers solely to the extent provided in

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

17 ‘‘(1) To the extent necessary for law enforce18 ment, including (but not limited to) the enforcement

19 of a child support obligation.

20 ‘‘(2) To the extent necessary for national secu21 rity purposes.

22 ‘‘(3) To the extent necessary for public health

23 purposes.
18

•S 1014 IS

1 ‘‘(4) To the extent necessary in emergency situ2 ations to protect the health or safety of 1 or more

3 individuals.

4 ‘‘(5) To the extent necessary for research con5 ducted for the purpose of advancing public knowl6 edge, on the condition that the researcher provides

7 adequate assurances that—

8 ‘‘(A) the social security account numbers

9 will not be used to harass, target, or publicly

10 reveal information concerning any identifiable

11 individuals;

12 ‘‘(B) information about identifiable individ13 uals obtained from the research will not be used

14 to make decisions that directly affect the rights,

15 benefits, or privileges of specific individuals;

16 and

17 ‘‘(C) the researcher has in place appro18 priate safeguards to protect the privacy and

19 confidentiality of any information about identi20 fiable individuals;

21 ‘‘(6) To the extent consistent with an individ22 ual’s voluntary and affirmative written consent to

23 the sale, purchase, or display of a social security ac24 count number that has been assigned to that indi25 vidual.
19

•S 1014 IS

1 ‘‘(7) Under such other appropriate cir2 cumstances as the Attorney General of the United

3 States may determine appropriate, in consultation

4 with the Commissioner of Social Security, the Fed5 eral Trade Commission, State attorneys general, and

6 such other governmental agencies or instrumental7 ities as the Attorney General of the United States

8 considers appropriate.

9 ‘‘(d) CRIMINAL PENALTY.—Any person who violates

10 this section shall be guilty of a felony and upon conviction

11 thereof shall be fined under title 18, United States Code,

12 imprisoned for not more than 5 years, or both.’’.

13 (b) EFFECTIVE DATE.—The amendment made by

14 this section shall apply with respect to violations occurring

15 after 30 days after the date of the issuance by the Attor16 ney General of the United States of final regulations

17 under section (c).

18 (c) RULEMAKING BY THE ATTORNEY GENERAL.—

19 (1) IN GENERAL.—Not later than 180 days

20 after the date of the enactment of this Act, the At21 torney General of the United States shall promul22 gate regulations in accordance with section 553 of

23 title 5, United States Code, under section 208A of

24 the Social Security Act (added by this section).

25 (2) FACTORS FOR CONSIDERATION.—
20

•S 1014 IS

1 (A) IN GENERAL.—In promulgating the

2 regulations described in paragraph (1), the At3 torney General shall impose restrictions and

4 conditions on the sale, purchase, and display of

5 social security account numbers, and on any

6 unfair or deceptive acts or practices in connec7 tion with the sale, purchase, or display of social

8 security account numbers, to the extent

9 necessary—

10 (i) to provide reasonable assurances

11 that social security account numbers will

12 not be used to commit or facilitate fraud,

13 deception, or crime, or

14 (ii) to prevent an undue risk of bodily,

15 emotional, or financial harm to an indi16 vidual,

17 except that any such restriction or condition

18 shall be no broader than necessary to accom19 plish such purpose described in clause (i) or

20 (ii).

21 (B) REQUIRED CONSIDERATIONS FOR PRE22 VENTION OF UNDUE RISK.—For purposes of

23 subparagraph (A)(ii), the Attorney General

24 shall consider—
21

•S 1014 IS

1 (i) the nature, likelihood, and severity

2 of the anticipated harm;

3 (ii) the nature, likelihood, and extent

4 of any benefits that could be realized from

5 the sale, purchase, or display of social se6 curity account numbers; and

7 (iii) any other relevant factors.

8 SEC. 202. REFUSAL TO DO BUSINESS WITHOUT RECEIPT OF

9 SOCIAL SECURITY ACCOUNT NUMBER CON10 SIDERED UNFAIR OR DECEPTIVE ACT OR

11 PRACTICE.

12 (a) IN GENERAL.—Any person who refuses to do

13 business with an individual because the individual will not

14 consent to the receipt by such person of the social security

15 account number of such individual shall be considered to

16 have committed an unfair or deceptive act or practice in

17 violation of section 5 of the Federal Trade Commission

18 Act (15 U.S.C. 45). Action may be taken under such sec19 tion 5 against such a person.

20 (b) EXCEPTION.—Subsection (a) shall not apply to

21 any person in any case in which such person is required

22 under Federal law, in connection with doing business with

23 an individual, to submit to the Federal Government such

24 individual’s Social Security account number.
22

•S 1014 IS

1 SEC. 203. CONFIDENTIAL TREATMENT OF CREDIT HEADER

2 INFORMATION.

3 (a) IN GENERAL.—Section 603 of the Fair Credit

4 Reporting Act (15 U.S.C. 1681a) is amended by adding

5 at the end the following new subsection:

6 ‘‘(q) CONFIDENTIAL TREATMENT OF CREDIT HEAD7 ER INFORMATION.—Information regarding the social se8 curity account number of the consumer, or any derivative

9 thereof, may not be furnished to any person by a consumer

10 reporting agency other than in a full consumer report fur11 nished in accordance with section 604 and other require12 ments of this title.’’.

13 (b) EFFECTIVE DATE.—The amendment made by

14 this section shall take effect 90 days after the date of the

15 enactment of this Act.

16 TITLE III—ENFORCEMENT

17 SEC. 301. NEW CRIMINAL PENALTIES FOR MISUSE OF SO18 CIAL SECURITY ACCOUNT NUMBERS.

19 (a) IN GENERAL.—Section 208(a) of the Social Secu20 rity Act (42 U.S.C. 408(a)) is amended—

21 (1) in paragraph (8), by adding ‘‘or’’ at the

22 end; and

23 (2) by inserting after paragraph (8) the fol24 lowing new paragraphs:

25 ‘‘(9) offers, for a fee, to acquire for any indi26 vidual, or to assist in acquiring for any individual,
23

•S 1014 IS

1 an additional social security account number or a

2 number that purports to be a social security account

3 number; or

4 ‘‘(10) being an officer or employee of any exec5 utive, legislative, or judicial agency or instrumen6 tality of the Federal Government or of a State or

7 political subdivision thereof (or a person acting as

8 an agent of such an agency or instrumentality) in

9 possession of any individual’s social security account

10 number (or an officer or employee thereof or a per11 son acting as an agent thereof), willfully acts or fails

12 to act so as to cause a violation of clause (vi)(II),

13 (x), (xi), (xii), or (xiv) of section 205(c)(2)(C); or

14 ‘‘(11) being a trustee appointed in a case under

15 title 11, United States Code (or an officer or em16 ployee thereof or a person acting as an agent there17 of), willfully acts or fails to act so as to cause a vio18 lation of clause (x), (xi), or (xii) of section

19 205(c)(2)(C);’’.

20 (b) EFFECTIVE DATES.—Section 208(a)(9) of the

21 Social Security Act (added by subsection (a)(2)) shall

22 apply with respect to each violation occurring after the

23 date of the enactment of this Act. Paragraphs (10) and

24 (11) of section 208(a) of such Act (added by subsection

25 (a)(2)) shall apply with respect to each violation occurring
24

•S 1014 IS

1 on or after the effective date applicable with respect to

2 such violation under title I.

3 SEC. 302. EXTENSION OF CIVIL MONETARY PENALTY AU4 THORITY.

5 (a) APPLICATION OF CIVIL MONEY PENALTIES TO

6 ELEMENTS OF CRIMINAL VIOLATIONS.—Section 1129(a)

7 of the Social Security Act (42 U.S.C. 1320a–8(a)) is

8 amended—

9 (1) by redesignating paragraph (2) as para10 graph (4);

11 (2) by designating the last sentence of para12 graph (1) as a new paragraph (2), appearing after

13 and below paragraph (1); and

14 (3) by inserting after paragraph (2) (as des15 ignated under paragraph (2) of this subsection) the

16 following:

17 ‘‘(3) Any person (including an organization, agency,

18 or other entity) who—

19 ‘‘(A) uses a social security account number that

20 such person knows or should know has been as21 signed by the Commissioner of Social Security (in an

22 exercise of authority under section 205(c)(2) to es23 tablish and maintain records) on the basis of false

24 information furnished to the Commissioner by any

25 person;
25

•S 1014 IS

1 ‘‘(B) falsely represents a number to be the so2 cial security account number assigned by the Com3 missioner of Social Security to any individual, when

4 such person knows or should know that such number

5 is not the social security account number assigned

6 by the Commissioner to such individual;

7 ‘‘(C) knowingly alters a social security card

8 issued by the Commissioner of Social Security, or

9 possesses such a card with intent to alter it;

10 ‘‘(D) knowingly buys or sells a card that is, or

11 purports to be, a card issued by the Commissioner

12 of Social Security, or possesses such a card with in13 tent to buy or sell it;

14 ‘‘(E) counterfeits a social security card, or pos15 sesses a counterfeit social security card with intent

16 to buy or sell it;

17 ‘‘(F) discloses, uses, compels the disclosure of,

18 or knowingly sells or purchases the social security

19 account number of any person in violation of the

20 laws of the United States;

21 ‘‘(G) with intent to deceive the Commissioner of

22 Social Security as to such person’s true identity (or

23 the true identity of any other person), furnishes or

24 causes to be furnished false information to the Com25 missioner with respect to any information required
26

•S 1014 IS

1 by the Commissioner in connection with the estab2 lishment and maintenance of the records provided

3 for in section 205(c)(2);

4 ‘‘(H) offers, for a fee, to acquire for any indi5 vidual, or to assist in acquiring for any individual,

6 an additional social security account number or a

7 number which purports to be a social security ac8 count number;

9 ‘‘(I) being an officer or employee of any execu10 tive, legislative, or judicial agency or instrumentality

11 of the Federal Government or of a State or political

12 subdivision thereof (or a person acting as an agent

13 of such an agency or instrumentality) (or an officer

14 or employee thereof or a person acting as an agent

15 thereof), in possession of any individual’s social se16 curity account number, willfully acts or fails to act

17 so as to cause a violation of clause (vi)(II), (x), (xi),

18 (xii), or (xiv) of section 205(c)(2)(C);

19 ‘‘(J) being a trustee appointed in a case under

20 title 11, United States Code (or an officer or em21 ployee thereof or a person acting as an agent there22 of), willfully acts or fails to act so as to cause a vio23 lation of clause (x), (xi), or (xiii) of section

24 205(c)(2)(C); or
27

•S 1014 IS

1 ‘‘(K) violates section 208A (relating to prohibi2 tion of the sale, purchase, or display of the social se3 curity account number in the private sector);

4 shall be subject to, in addition to any other penalties that

5 may be prescribed by law, a civil money penalty of not

6 more than $5,000 for each violation. Such person shall

7 also be subject to an assessment, in lieu of damages sus8 tained by the United States resulting from such violation,

9 of not more than twice the amount of any benefits or pay10 ments paid as a result of such violation.’’.

11 (b) EFFECTIVE DATES.—The amendments made by

12 this section shall apply with respect to violations com13 mitted after the date of the enactment of this Act, except

14 that subparagraphs (I) and (J) of section 1129(a)(3) of

15 the Social Security Act (added by subsection (a)) shall

16 apply with respect to violations occurring on or after the

17 effective date provided in connection with such violations

18 under title I.

19 SEC. 303. AUTHORITY FOR JUDICIAL ORDERS OF RESTITU20 TION.

21 (a) AMENDMENTS TO TITLE II.—Title II of the So22 cial Security Act is amended—

23 (1) in section 208 (42 U.S.C. 408) (as amended

24 by section 301 of this Act)—
28

•S 1014 IS

1 (A) by redesignating subsections (b), (c),

2 and (d) as subsections (c), (d), and (e), respec3 tively; and

4 (B) by inserting after subsection (a) the

5 following new subsection:

6 ‘‘(b)(1) Any Federal court, when sentencing a defend7 ant convicted of an offense under subsection (a), may

8 order, in addition to or in lieu of any other penalty author9 ized by law, that the defendant make restitution to the

10 Social Security Administration.

11 ‘‘(2) Sections 3612, 3663, and 3664 of title 18,

12 United States Code, shall apply with respect to the

13 issuance and enforcement of orders of restitution under

14 this subsection. In so applying such sections, the Social

15 Security Administration shall be considered the victim.

16 ‘‘(3) If the court does not order restitution, or orders

17 only partial restitution, under this subsection, the court

18 shall state on the record the reasons therefor.’’; and

19 (2) in section 208A (added by section 201 of

20 this Act)—

21 (A) by striking ‘‘section 208(c)’’ in sub22 section (a)(5) and inserting ‘‘section 208(d)’’;

23 and

24 (B) by adding at the end the following new

25 subsection:
29

•S 1014 IS

1 ‘‘(e) COURT ORDER FOR RESTITUTION.—

2 ‘‘(1) IN GENERAL.—Any Federal court, when

3 sentencing a defendant convicted of an offense under

4 subsection (a), may order, in addition to or in lieu

5 of any other penalty authorized by law, that the de6 fendant make restitution to the Social Security Ad7 ministration.

8 ‘‘(2) RELATED PROVISIONS.—Sections 3612,

9 3663, and 3664 of title 18, United States Code,

10 shall apply with respect to the issuance and enforce11 ment of orders of restitution under this subsection.

12 In so applying such sections, the Social Security Ad13 ministration shall be considered the victim.

14 ‘‘(3) STATED REASONS FOR NOT ORDERING

15 RESTITUTION.—If the court does not order restitu16 tion, or orders only partial restitution, under this

17 subsection, the court shall state on the record the

18 reasons therefor.’’.

19 (b) AMENDMENTS TO TITLE VIII.—Section 807(i) of

20 such Act (42 U.S.C. 1007(i)) is amended—

21 (1) by striking ‘‘(i) RESTITUTION.—In any case

22 where’’ and inserting the following:

23 ‘‘(i) RESTITUTION.—

24 ‘‘(1) IN GENERAL.—In any case where’’; and
30

•S 1014 IS

1 (2) by adding at the end the following new

2 paragraph:

3 ‘‘(2) COURT ORDER FOR RESTITUTION.—

4 ‘‘(A) IN GENERAL.—Any Federal court,

5 when sentencing a defendant convicted of an of6 fense under subsection (a), may order, in addi7 tion to or in lieu of any other penalty author8 ized by law, that the defendant make restitution

9 to the Social Security Administration.

10 ‘‘(B) RELATED PROVISIONS.—Sections

11 3612, 3663, and 3664 of title 18, United States

12 Code, shall apply with respect to the issuance

13 and enforcement of orders of restitution under

14 this paragraph. In so applying such sections,

15 the Social Security Administration shall be con16 sidered the victim.

17 ‘‘(C) STATED REASONS FOR NOT ORDER18 ING RESTITUTION.—If the court does not order

19 restitution, or orders only partial restitution,

20 under this paragraph, the court shall state on

21 the record the reasons therefor.’’.

22 (c) AMENDMENTS TO TITLE XVI.—Section 1632 of

23 such Act (42 U.S.C. 1383a) is amended—

24 (1) by redesignating subsection (b) as sub25 section (c); and
31

•S 1014 IS

1 (2) by inserting after subsection (a) the fol2 lowing new subsection:

3 ‘‘(b)(1) Any Federal court, when sentencing a defend4 ant convicted of an offense under subsection (a), may

5 order, in addition to or in lieu of any other penalty author6 ized by law, that the defendant make restitution to the

7 Social Security Administration.

8 ‘‘(2) Sections 3612, 3663, and 3664 of title 18,

9 United States Code, shall apply with respect to the

10 issuance and enforcement of orders of restitution under

11 this subsection. In so applying such sections, the Social

12 Security Administration shall be considered the victim.

13 ‘‘(3) If the court does not order restitution, or orders

14 only partial restitution, under this subsection, the court

15 shall state on the record the reasons therefor.’’.

16 (d) SPECIAL ACCOUNT FOR RECEIPT OF RESTITU17 TION PAYMENTS.—Section 704(b) of such Act (42 U.S.C.

18 904(b)) is amended by adding at the end the following

19 new paragraph:

20 ‘‘(3)(A) Except as provided in subparagraph (B),

21 amounts received by the Social Security Administration

22 pursuant to an order of restitution under section 208(b),

23 208A(e), 807(i), or 1632(b) shall be credited to a special

24 fund established in the Treasury of the United States for

25 amounts so received or recovered. The amounts so cred-
32

•S 1014 IS

1 ited, to the extent and in the amounts provided in advance

2 in appropriations Acts, shall be available to defray ex3 penses incurred in carrying out titles II, VIII, and XVI.

4 ‘‘(B) Subparagraph (A) shall not apply with respect

5 to amounts received in connection with misuse by a rep6 resentative payee (within the meaning of sections 205(j),

7 807, and 1631(a)(2)) of funds paid as benefits under title

8 II, VIII, or XVI. Such amounts received in connection

9 with misuse of funds paid as benefits under title II shall

10 be transferred to the Managing Trustee of the Federal

11 Old-Age and Survivors Insurance Trust Fund or the Fed12 eral Disability Insurance Trust Fund, as determined ap13 propriate by the Commissioner of Social Security, and

14 such amounts shall be deposited by the Managing Trustee

15 into such Trust Fund. All other such amounts shall be

16 deposited by the Commissioner into the general fund of

17 the Treasury as miscellaneous receipts.’’.

18 (e) EFFECTIVE DATE.—The amendments made by

19 subsections (a) and (b) shall apply with respect to viola20 tions occurring on or after the date of the enactment of

21 this Act.

Æ