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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 228 Placed on Calendar Senate (PCS)]

                                                         Calendar No. 5
108th CONGRESS
  1st Session
                                 S. 228

 To amend title 18, United States Code, to limit the misuse of social 
security numbers, to establish criminal penalties for such misuse, and 
                          for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            January 28, 2003

 Mrs. Feinstein (for herself, Mr. Gregg, and Mr. Leahy) introduced the 
             following bill; which was read the first time

                            January 29, 2003

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 A BILL

 
 To amend title 18, United States Code, to limit the misuse of social 
security numbers, to establish criminal penalties for such misuse, and 
                          for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Social Security 
Number Misuse Prevention Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Prohibition of the display, sale, or purchase of social 
                            security numbers.
Sec. 4. Application of prohibition of the display, sale, or purchase of 
                            social security numbers to public records.
Sec. 5. Rulemaking authority of the Attorney General.
Sec. 6. Treatment of social security numbers on government documents.
Sec. 7. Limits on personal disclosure of a social security number for 
                            consumer transactions.
Sec. 8. Extension of civil monetary penalties for misuse of a social 
                            security number.
Sec. 9. Criminal penalties for the misuse of a social security number.
Sec. 10. Civil actions and civil penalties.
Sec. 11. Federal injunctive authority.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The inappropriate display, sale, or purchase of social 
        security numbers has contributed to a growing range of illegal 
        activities, including fraud, identity theft, and, in some 
        cases, stalking and other violent crimes.
            (2) While financial institutions, health care providers, 
        and other entities have often used social security numbers to 
        confirm the identity of an individual, the general display to 
        the public, sale, or purchase of these numbers has been used to 
        commit crimes, and also can result in serious invasions of 
        individual privacy.
            (3) The Federal Government requires virtually every 
        individual in the United States to obtain and maintain a social 
        security number in order to pay taxes, to qualify for social 
        security benefits, or to seek employment. An unintended 
        consequence of these requirements is that social security 
        numbers have become one of the tools that can be used to 
        facilitate crime, fraud, and invasions of the privacy of the 
        individuals to whom the numbers are assigned. Because the 
        Federal Government created and maintains this system, and 
        because the Federal Government does not permit individuals to 
        exempt themselves from those requirements, it is appropriate 
        for the Federal Government to take steps to stem the abuse of 
        social security numbers.
            (4) The display, sale, or purchase of social security 
        numbers in no way facilitates uninhibited, robust, and wide-
        open public debate, and restrictions on such display, sale, or 
        purchase would not affect public debate.
            (5) No one should seek to profit from the display, sale, or 
        purchase of social security numbers in circumstances that 
        create a substantial risk of physical, emotional, or financial 
        harm to the individuals to whom those numbers are assigned.
            (6) Consequently, this Act provides each individual that 
        has been assigned a social security number some degree of 
        protection from the display, sale, and purchase of that number 
        in any circumstance that might facilitate unlawful conduct.

SEC. 3. PROHIBITION OF THE DISPLAY, SALE, OR PURCHASE OF SOCIAL 
              SECURITY NUMBERS.

    (a) Prohibition.--
            (1) In general.--Chapter 47 of title 18, United States 
        Code, is amended by inserting after section 1028 the following:
``Sec. 1028A. Prohibition of the display, sale, or purchase of social 
              security numbers
    ``(a) Definitions.--In this section:
            ``(1) Display.--The term `display' means to intentionally 
        communicate or otherwise make available (on the Internet or in 
        any other manner) to the general public an individual's social 
        security number.
            ``(2) Person.--The term `person' means any individual, 
        partnership, corporation, trust, estate, cooperative, 
        association, or any other entity.
            ``(3) Purchase.--The term `purchase' means providing 
        directly or indirectly, anything of value in exchange for a 
        social security number.
            ``(4) Sale.--The term `sale' means obtaining, directly or 
        indirectly, anything of value in exchange for a social security 
        number.
            ``(5) State.--The term `State' means any State of the 
        United States, the District of Columbia, Puerto Rico, the 
        Northern Mariana Islands, the United States Virgin Islands, 
        Guam, American Samoa, and any territory or possession of the 
        United States.
    ``(b) Limitation on Display.--Except as provided in section 1028B, 
no person may display any individual's social security number to the 
general public without the affirmatively expressed consent of the 
individual.
    ``(c) Limitation on Sale or Purchase.--Except as otherwise provided 
in this section, no person may sell or purchase any individual's social 
security number without the affirmatively expressed consent of the 
individual.
    ``(d) Prerequisites for Consent.--In order for consent to exist 
under subsection (b) or (c), the person displaying or seeking to 
display, selling or attempting to sell, or purchasing or attempting to 
purchase, an individual's social security number shall--
            ``(1) inform the individual of the general purpose for 
        which the number will be used, the types of persons to whom the 
        number may be available, and the scope of transactions 
        permitted by the consent; and
            ``(2) obtain the affirmatively expressed consent 
        (electronically or in writing) of the individual.
    ``(e) Exceptions.--Nothing in this section shall be construed to 
prohibit or limit the display, sale, or purchase of a social security 
number--
            ``(1) required, authorized, or excepted under any Federal 
        law;
            ``(2) for a public health purpose, including the protection 
        of the health or safety of an individual in an emergency 
        situation;
            ``(3) for a national security purpose;
            ``(4) for a law enforcement purpose, including the 
        investigation of fraud and the enforcement of a child support 
        obligation;
            ``(5) if the display, sale, or purchase of the number is 
        for a use occurring as a result of an interaction between 
        businesses, governments, or business and government (regardless 
        of which entity initiates the interaction), including, but not 
        limited to--
                    ``(A) the prevention of fraud (including fraud in 
                protecting an employee's right to employment benefits);
                    ``(B) the facilitation of credit checks or the 
                facilitation of background checks of employees, 
                prospective employees, or volunteers;
                    ``(C) the retrieval of other information from other 
                businesses, commercial enterprises, government 
                entities, or private nonprofit organizations; or
                    ``(D) when the transmission of the number is 
                incidental to, and in the course of, the sale, lease, 
                franchising, or merger of all, or a portion of, a 
                business;
            ``(6) if the transfer of such a number is part of a data 
        matching program involving a Federal, State, or local agency; 
        or
            ``(7) if such number is required to be submitted as part of 
        the process for applying for any type of Federal, State, or 
        local government benefit or program;
except that, nothing in this subsection shall be construed as 
permitting a professional or commercial user to display or sell a 
social security number to the general public.
    ``(f) Limitation.--Nothing in this section shall prohibit or limit 
the display, sale, or purchase of social security numbers as permitted 
under title V of the Gramm-Leach-Bliley Act, or for the purpose of 
affiliate sharing as permitted under the Fair Credit Reporting Act, 
except that no entity regulated under such Acts may make social 
security numbers available to the general public, as may be determined 
by the appropriate regulators under such Acts. For purposes of this 
subsection, the general public shall not include affiliates or 
unaffiliated third-party business entities as may be defined by the 
appropriate regulators.''.
            (2) Conforming Amendment.--The chapter analysis for chapter 
        47 of title 18, United States Code, is amended by inserting 
        after the item relating to section 1028 the following:

``1028A. Prohibition of the display, sale, or purchase of social 
                            security numbers.''.
    (b) Study; Report.--
            (1) In general.--The Attorney General shall conduct a study 
        and prepare a report on all of the uses of social security 
        numbers permitted, required, authorized, or excepted under any 
        Federal law. The report shall include a detailed description of 
        the uses allowed as of the date of enactment of this Act and 
        shall evaluate whether such uses should be continued or 
        discontinued by appropriate legislative action.
            (2) Report.--Not later than 1 year after the date of 
        enactment of this Act, the Attorney General shall report to 
        Congress findings under this subsection. The report shall 
        include such recommendations for legislation based on criteria 
        the Attorney General determines to be appropriate.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date that is 30 days after the date on which the final 
regulations promulgated under section 5 are published in the Federal 
Register.

SEC. 4. APPLICATION OF PROHIBITION OF THE DISPLAY, SALE, OR PURCHASE OF 
              SOCIAL SECURITY NUMBERS TO PUBLIC RECORDS.

    (a) Public Records Exception.--
            (1) In general.--Chapter 47 of title 18, United States Code 
        (as amended by section 3(a)(1)), is amended by inserting after 
        section 1028A the following:
``Sec. 1028B. Display, sale, or purchase of public records containing 
              social security numbers
    ``(a) Definition.--In this section, the term `public record' means 
any governmental record that is made available to the general public.
    ``(b) In General.--Except as provided in subsections (c), (d), and 
(e), section 1028A shall not apply to a public record.
    ``(c) Public Records on the Internet or in an Electronic Medium.--
            ``(1) In general.--Section 1028A shall apply to any public 
        record first posted onto the Internet or provided in an 
        electronic medium by, or on behalf of a government entity after 
        the date of enactment of this section, except as limited by the 
        Attorney General in accordance with paragraph (2).
            ``(2) Exception for government entities already placing 
        public records on the internet or in electronic form.--Not 
        later than 60 days after the date of enactment of this section, 
        the Attorney General shall issue regulations regarding the 
        applicability of section 1028A to any record of a category of 
        public records first posted onto the Internet or provided in an 
        electronic medium by, or on behalf of a government entity prior 
        to the date of enactment of this section. The regulations will 
        determine which individual records within categories of records 
        of these government entities, if any, may continue to be posted 
        on the Internet or in electronic form after the effective date 
        of this section. In promulgating these regulations, the 
        Attorney General may include in the regulations a set of 
        procedures for implementing the regulations and shall consider 
        the following:
                    ``(A) The cost and availability of technology 
                available to a governmental entity to redact social 
                security numbers from public records first provided in 
                electronic form after the effective date of this 
                section.
                    ``(B) The cost or burden to the general public, 
                businesses, commercial enterprises, non-profit 
                organizations, and to Federal, State, and local 
                governments of complying with section 1028A with 
                respect to such records.
                    ``(C) The benefit to the general public, 
                businesses, commercial enterprises, non-profit 
                organizations, and to Federal, State, and local 
                governments if the Attorney General were to determine 
                that section 1028A should apply to such records.
        Nothing in the regulation shall permit a public entity to post 
        a category of public records on the Internet or in electronic 
        form after the effective date of this section if such category 
        had not been placed on the Internet or in electronic form prior 
        to such effective date.
    ``(d) Harvested Social Security Numbers.--Section 1028A shall apply 
to any public record of a government entity which contains social 
security numbers extracted from other public records for the purpose of 
displaying or selling such numbers to the general public.
    ``(e) Attorney General Rulemaking on Paper Records.--
            ``(1) In general.--Not later than 60 days after the date of 
        enactment of this section, the Attorney General shall determine 
        the feasibility and advisability of applying section 1028A to 
        the records listed in paragraph (2) when they appear on paper 
        or on another nonelectronic medium. If the Attorney General 
        deems it appropriate, the Attorney General may issue 
        regulations applying section 1028A to such records.
            ``(2) List of paper and other nonelectronic records.--The 
        records listed in this paragraph are as follows:
                    ``(A) Professional or occupational licenses.
                    ``(B) Marriage licenses.
                    ``(C) Birth certificates.
                    ``(D) Death certificates.
                    ``(E) Other short public documents that display a 
                social security number in a routine and consistent 
                manner on the face of the document.
            ``(3) Criteria for attorney general review.--In determining 
        whether section 1028A should apply to the records listed in 
        paragraph (2), the Attorney General shall consider the 
        following:
                    ``(A) The cost or burden to the general public, 
                businesses, commercial enterprises, non-profit 
                organizations, and to Federal, State, and local 
                governments of complying with section 1028A.
                    ``(B) The benefit to the general public, 
                businesses, commercial enterprises, non-profit 
                organizations, and to Federal, State, and local 
                governments if the Attorney General were to determine 
                that section 1028A should apply to such records.''.
            (2) Conforming Amendment.--The chapter analysis for chapter 
        47 of title 18, United States Code (as amended by section 
        3(a)(2)), is amended by inserting after the item relating to 
        section 1028A the following:

``1028B. Display, sale, or purchase of public records containing social 
                            security numbers.''.
    (b) Study and Report on Social Security Numbers in Public 
Records.--
            (1) Study.--The Comptroller General of the United States 
        shall conduct a study and prepare a report on social security 
        numbers in public records. In developing the report, the 
        Comptroller General shall consult with the Administrative 
        Office of the United States Courts, State and local governments 
        that store, maintain, or disseminate public records, and other 
        stakeholders, including members of the private sector who 
        routinely use public records that contain social security 
        numbers.
            (2) Report.--Not later than 1 year after the date of 
        enactment of this Act, the Comptroller General of the United 
        States shall submit to Congress a report on the study conducted 
        under paragraph (1). The report shall include a detailed 
        description of the activities and results of the study and 
        recommendations for such legislative action as the Comptroller 
        General considers appropriate. The report, at a minimum, shall 
        include--
                    (A) a review of the uses of social security numbers 
                in non-federal public records;
                    (B) a review of the manner in which public records 
                are stored (with separate reviews for both paper 
                records and electronic records);
                    (C) a review of the advantages or utility of public 
                records that contain social security numbers, including 
                the utility for law enforcement, and for the promotion 
                of homeland security;
                    (D) a review of the disadvantages or drawbacks of 
                public records that contain social security numbers, 
                including criminal activity, compromised personal 
                privacy, or threats to homeland security;
                    (E) the costs and benefits for State and local 
                governments of removing social security numbers from 
                public records, including a review of current 
                technologies and procedures for removing social 
                security numbers from public records; and
                    (F) an assessment of the benefits and costs to 
                businesses, their customers, and the general public of 
                prohibiting the display of social security numbers on 
                public records (with separate assessments for both 
                paper records and electronic records).
    (c) Effective Date.--The prohibition with respect to electronic 
versions of new classes of public records under section 1028B(b) of 
title 18, United States Code (as added by subsection (a)(1)) shall not 
take effect until the date that is 60 days after the date of enactment 
of this Act.

SEC. 5. RULEMAKING AUTHORITY OF THE ATTORNEY GENERAL.

    (a) In General.--Except as provided in subsection (b), the Attorney 
General may prescribe such rules and regulations as the Attorney 
General deems necessary to carry out the provisions of section 
1028A(e)(5) of title 18, United States Code (as added by section 
3(a)(1)).
    (b) Display, Sale, or Purchase Rulemaking With Respect to 
Interactions Between Businesses, Governments, or Business and 
Government.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Attorney General, in consultation 
        with the Commissioner of Social Security, the Chairman of the 
        Federal Trade Commission, and such other heads of Federal 
        agencies as the Attorney General determines appropriate, shall 
        conduct such rulemaking procedures in accordance with 
        subchapter II of chapter 5 of title 5, United States Code, as 
        are necessary to promulgate regulations to implement and 
        clarify the uses occurring as a result of an interaction 
        between businesses, governments, or business and government 
        (regardless of which entity initiates the interaction) 
        permitted under section 1028A(e)(5) of title 18, United States 
        Code (as added by section 3(a)(1)).
            (2) Factors to be considered.--In promulgating the 
        regulations required under paragraph (1), the Attorney General 
        shall, at a minimum, consider the following:
                    (A) The benefit to a particular business, to 
                customers of the business, and to the general public of 
                the display, sale, or purchase of an individual's 
                social security number.
                    (B) The costs that businesses, customers of 
                businesses, and the general public may incur as a 
                result of prohibitions on the display, sale, or 
                purchase of social security numbers.
                    (C) The risk that a particular business practice 
                will promote the use of a social security number to 
                commit fraud, deception, or crime.
                    (D) The presence of adequate safeguards and 
                procedures to prevent--
                            (i) misuse of social security numbers by 
                        employees within a business; and
                            (ii) misappropriation of social security 
                        numbers by the general public, while permitting 
                        internal business uses of such numbers.
                    (E) The presence of procedures to prevent identity 
                thieves, stalkers, and other individuals with ill 
                intent from posing as legitimate businesses to obtain 
                social security numbers.

SEC. 6. TREATMENT OF SOCIAL SECURITY NUMBERS ON GOVERNMENT DOCUMENTS.

    (a) Prohibition of Use of Social Security Account Numbers on Checks 
Issued for Payment by Governmental Agencies.--
            (1) 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:
    ``(x) No Federal, State, or local agency may display the social 
security account number of any individual, or any derivative of such 
number, on any check issued for any payment by the Federal, State, or 
local agency.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply with respect to violations of section 
        205(c)(2)(C)(x) of the Social Security Act (42 U.S.C. 
        405(c)(2)(C)(x)), as added by paragraph (1), occurring after 
        the date that is 3 years after the date of enactment of this 
        Act.
    (b) Prohibition of Appearance of Social Security Account Numbers on 
Driver's Licenses or Motor Vehicle Registration.--
            (1) In general.--Section 205(c)(2)(C)(vi) of the Social 
        Security Act (42 U.S.C. 405(c)(2)(C)(vi)) is amended--
                    (A) by inserting ``(I)'' after ``(vi)''; and
                    (B) by adding at the end the following:
    ``(II)(aa) An agency of a State (or political subdivision thereof), 
in the administration of any driver's license or motor vehicle 
registration law within its jurisdiction, may not display the social 
security account numbers issued by the Commissioner of Social Security, 
or any derivative of such numbers, on the face of any driver's license 
or motor vehicle registration or any other document issued by such 
State (or political subdivision thereof) to an individual for purposes 
of identification of such individual.
    ``(bb) Nothing in this subclause shall be construed as precluding 
an agency of a State (or political subdivision thereof), in the 
administration of any driver's license or motor vehicle registration 
law within its jurisdiction, from using a social security account 
number for an internal use or to link with the database of an agency of 
another State that is responsible for the administration of any 
driver's license or motor vehicle registration law.''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply with respect to licenses, registrations, and other 
        documents issued or reissued after the date that is 1 year 
        after the date of enactment of this Act.
    (c) Prohibition of Inmate Access to Social Security Account 
Numbers.--
            (1) In general.--Section 205(c)(2)(C) of the Social 
        Security Act (42 U.S.C. 405(c)(2)(C)) (as amended by subsection 
        (b)) is amended by adding at the end the following:
    ``(xi) No Federal, State, or local agency 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 pursuant to such 
individual's conviction of a criminal offense.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply with respect to employment of prisoners, or entry 
        into contract with prisoners, after the date that is 1 year 
        after the date of enactment of this Act.

SEC. 7. LIMITS ON PERSONAL DISCLOSURE OF A SOCIAL SECURITY NUMBER FOR 
              CONSUMER TRANSACTIONS.

    (a) In General.--Part A of title XI of the Social Security Act (42 
U.S.C. 1301 et seq.) is amended by adding at the end the following:

``SEC. 1150A. LIMITS ON PERSONAL DISCLOSURE OF A SOCIAL SECURITY NUMBER 
              FOR CONSUMER TRANSACTIONS.

    ``(a) In General.--A commercial entity may not require an 
individual to provide the individual's social security number when 
purchasing a commercial good or service or deny an individual the good 
or service for refusing to provide that number except--
            ``(1) for any purpose relating to--
                    ``(A) obtaining a consumer report for any purpose 
                permitted under the Fair Credit Reporting Act;
                    ``(B) a background check of the individual 
                conducted by a landlord, lessor, employer, voluntary 
                service agency, or other entity as determined by the 
                Attorney General;
                    ``(C) law enforcement; or
                    ``(D) a Federal, State, or local law requirement; 
                or
            ``(2) if the social security number is necessary to verify 
        the identity of the consumer to effect, administer, or enforce 
        the specific transaction requested or authorized by the 
        consumer, or to prevent fraud.
    ``(b) Application of Civil Money Penalties.--A violation of this 
section shall be deemed to be a violation of section 1129(a)(3)(F).
    ``(c) Application of Criminal Penalties.--A violation of this 
section shall be deemed to be a violation of section 208(a)(8).
    ``(d) Limitation on Class Actions.--No class action alleging a 
violation of this section shall be maintained under this section by an 
individual or any private party in Federal or State court.
    ``(e) State Attorney General Enforcement.--
            ``(1) In general.--
                    ``(A) Civil actions.--In any case in which the 
                attorney general of a State has reason to believe that 
                an interest of the residents of that State has been or 
                is threatened or adversely affected by the engagement 
                of any person in a practice that is prohibited under 
                this section, the State, as parens patriae, may bring a 
                civil action on behalf of the residents of the State in 
                a district court of the United States of appropriate 
                jurisdiction to--
                            ``(i) enjoin that practice;
                            ``(ii) enforce compliance with such 
                        section;
                            ``(iii) obtain damages, restitution, or 
                        other compensation on behalf of residents of 
                        the State; or
                            ``(iv) obtain such other relief as the 
                        court may consider appropriate.
                    ``(B) Notice.--
                            ``(i) In general.--Before filing an action 
                        under subparagraph (A), the attorney general of 
                        the State involved shall provide to the 
                        Attorney General--
                                    ``(I) written notice of the action; 
                                and
                                    ``(II) a copy of the complaint for 
                                the action.
                            ``(ii) Exemption.--
                                    ``(I) In general.--Clause (i) shall 
                                not apply with respect to the filing of 
                                an action by an attorney general of a 
                                State under this subsection, if the 
                                State attorney general determines that 
                                it is not feasible to provide the 
                                notice described in such subparagraph 
                                before the filing of the action.
                                    ``(II) Notification.--With respect 
                                to an action described in subclause 
                                (I), the attorney general of a State 
                                shall provide notice and a copy of the 
                                complaint to the Attorney General at 
                                the same time as the State attorney 
                                general files the action.
            ``(2) Intervention.--
                    ``(A) In general.--On receiving notice under 
                paragraph (1)(B), the Attorney General shall have the 
                right to intervene in the action that is the subject of 
                the notice.
                    ``(B) Effect of intervention.--If the Attorney 
                General intervenes in the action under paragraph (1), 
                the Attorney General shall have the right to be heard 
                with respect to any matter that arises in that action.
            ``(3) Construction.--For purposes of bringing any civil 
        action under paragraph (1), nothing in this section shall be 
        construed to prevent an attorney general of a State from 
        exercising the powers conferred on such attorney general by the 
        laws of that State to--
                    ``(A) conduct investigations;
                    ``(B) administer oaths or affirmations; or
                    ``(C) compel the attendance of witnesses or the 
                production of documentary and other evidence.
            ``(4) Actions by the attorney general of the united 
        states.--In any case in which an action is instituted by or on 
        behalf of the Attorney General for violation of a practice that 
        is prohibited under this section, no State may, during the 
        pendency of that action, institute an action under paragraph 
        (1) against any defendant named in the complaint in that action 
        for violation of that practice.
            ``(5) Venue; service of process.--
                    ``(A) Venue.--Any action brought under paragraph 
                (1) may be brought in the district court of the United 
                States that meets applicable requirements relating to 
                venue under section 1391 of title 28, United States 
                Code.
                    ``(B) Service of process.--In an action brought 
                under paragraph (1), process may be served in any 
                district in which the defendant--
                            ``(i) is an inhabitant; or
                            ``(ii) may be found.
    ``(f) Sunset.--This section shall not apply on or after the date 
that is 6 years after the effective date of this section.''.
    (b) Evaluation and Report.--Not later than the date that is 6 years 
and 6 months after the date of enactment of this Act, the Attorney 
General, in consultation with the chairman of the Federal Trade 
Commission, shall issue a report evaluating the effectiveness and 
efficiency of section 1150A of the Social Security Act (as added by 
subsection (a)) and shall make recommendations to Congress as to any 
legislative action determined to be necessary or advisable with respect 
to such section, including a recommendation regarding whether to 
reauthorize such section.
    (c) Effective Date.--The amendment made by subsection (a) shall 
apply to requests to provide a social security number occurring after 
the date that is 1 year after the date of enactment of this Act.

SEC. 8. EXTENSION OF CIVIL MONETARY PENALTIES FOR MISUSE OF A SOCIAL 
              SECURITY NUMBER.

    (a) Treatment of Withholding of Material Facts.--
            (1) Civil penalties.--The first sentence of section 
        1129(a)(1) of the Social Security Act (42 U.S.C. 1320a-8(a)(1)) 
        is amended--
                    (A) by striking ``who'' and inserting ``who--'';
                    (B) by striking ``makes'' and all that follows 
                through ``shall be subject to'' and inserting the 
                following:
            ``(A) makes, or causes to be made, a statement or 
        representation of a material fact, for use in determining any 
        initial or continuing right to or the amount of monthly 
        insurance benefits under title II or benefits or payments under 
        title VIII or XVI, that the person knows or should know is 
        false or misleading;
            ``(B) makes such a statement or representation for such use 
        with knowing disregard for the truth; or
            ``(C) omits from a statement or representation for such 
        use, or otherwise withholds disclosure of, a fact which the 
        individual knows or should know is material to the 
        determination of any initial or continuing right to or the 
        amount of monthly insurance benefits under title II or benefits 
        or payments under title VIII or XVI and the individual knows, 
        or should know, that the statement or representation with such 
        omission is false or misleading or that the withholding of such 
        disclosure is misleading,
shall be subject to'';
                    (C) by inserting ``or each receipt of such benefits 
                while withholding disclosure of such fact'' after 
                ``each such statement or representation'';
                    (D) by inserting ``or because of such withholding 
                of disclosure of a material fact'' after ``because of 
                such statement or representation''; and
                    (E) by inserting ``or such a withholding of 
                disclosure'' after ``such a statement or 
                representation''.
            (2) Administrative procedure for imposing penalties.--The 
        first sentence of section 1129A(a) of the Social Security Act 
        (42 U.S.C. 1320a-8a(a)) is amended--
                    (A) by striking ``who'' and inserting ``who--''; 
                and
                    (B) by striking ``makes'' and all that follows 
                through ``shall be subject to'' and inserting the 
                following:
            ``(1) makes, or causes to be made, a statement or 
        representation of a material fact, for use in determining any 
        initial or continuing right to or the amount of monthly 
        insurance benefits under title II or benefits or payments under 
        title VIII or XVI, that the person knows or should know is 
        false or misleading;
            ``(2) makes such a statement or representation for such use 
        with knowing disregard for the truth; or
            ``(3) omits from a statement or representation for such 
        use, or otherwise withholds disclosure of, a fact which the 
        individual knows or should know is material to the 
        determination of any initial or continuing right to or the 
        amount of monthly insurance benefits under title II or benefits 
        or payments under title VIII or XVI and the individual knows, 
        or should know, that the statement or representation with such 
        omission is false or misleading or that the withholding of such 
        disclosure is misleading,
shall be subject to''.
    (b) 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)), as amended by subsection (a)(1), is amended--
            (1) by redesignating paragraph (2) as paragraph (4);
            (2) by redesignating the last sentence of paragraph (1) as 
        paragraph (2) and inserting such paragraph after paragraph (1); 
        and
            (3) by inserting after paragraph (2) (as so redesignated) 
        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;
            ``(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 displays, sells, or purchases 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 
        display, purchase, or sell it;
            ``(E) counterfeits a social security card, or possesses a 
        counterfeit social security card with intent to display, sell, 
        or purchase it;
            ``(F) discloses, uses, compels the disclosure of, or 
        knowingly displays, 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) 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; or
            ``(I) being an officer or employee of a Federal, State, or 
        local agency in possession of any individual's social security 
        account number, willfully acts or fails to act so as to cause a 
        violation by such agency of clause (vi)(II) or (x) of section 
        205(c)(2)(C),
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.''.
    (c) Clarification of Treatment of Recovered Amounts.--Section 
1129(e)(2)(B) of the Social Security Act (42 U.S.C. 1320a-8(e)(2)(B)) 
is amended by striking ``In the case of amounts recovered arising out 
of a determination relating to title VIII or XVI,'' and inserting ``In 
the case of any other amounts recovered under this section,''.
    (d) Conforming Amendments.--
            (1) Section 1129(b)(3)(A) of the Social Security Act (42 
        U.S.C. 1320a-8(b)(3)(A)) is amended by striking ``charging 
        fraud or false statements''.
            (2) Section 1129(c)(1) of the Social Security Act (42 
        U.S.C. 1320a-8(c)(1)) is amended by striking ``and 
        representations'' and inserting ``, representations, or 
        actions''.
            (3) Section 1129(e)(1)(A) of the Social Security Act (42 
        U.S.C. 1320a-8(e)(1)(A)) is amended by striking ``statement or 
        representation referred to in subsection (a) was made'' and 
        inserting ``violation occurred''.
    (e) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply with respect to 
        violations of sections 1129 and 1129A of the Social Security 
        Act (42 U.S.C. 1320-8 and 1320a-8a), as amended by this 
        section, committed after the date of enactment of this Act.
            (2) Violations by government agents in possession of social 
        security numbers.--Section 1129(a)(3)(I) of the Social Security 
        Act (42 U.S.C. 1320a-8(a)(3)(I)), as added by subsection (b), 
        shall apply with respect to violations of that section 
        occurring on or after the effective date described in section 
        3(c).

SEC. 9. CRIMINAL PENALTIES FOR THE MISUSE OF A SOCIAL SECURITY NUMBER.

    (a) Prohibition of Wrongful Use as Personal Identification 
Number.--No person may obtain any individual's social security number 
for purposes of locating or identifying an individual with the intent 
to physically injure, harm, or use the identity of the individual for 
any illegal purpose.
    (b) Criminal Sanctions.--Section 208(a) of the Social Security Act 
(42 U.S.C. 408(a)) is amended--
            (1) in paragraph (8), by inserting ``or'' after the 
        semicolon; and
            (2) by inserting after paragraph (8) the following:
            ``(9) except as provided in subsections (e) and (f) of 
        section 1028A of title 18, United States Code, knowingly and 
        willfully displays, sells, or purchases (as those terms are 
        defined in section 1028A(a) of title 18, United States Code) 
        any individual's social security account number without having 
        met the prerequisites for consent under section 1028A(d) of 
        title 18, United States Code; or
            ``(10) obtains any individual's social security number for 
        the purpose of locating or identifying the individual with the 
        intent to injure or to harm that individual, or to use the 
        identity of that individual for an illegal purpose;''.

SEC. 10. CIVIL ACTIONS AND CIVIL PENALTIES.

    (a) Civil Action in State Courts.--
            (1) In general.--Any individual aggrieved by an act of any 
        person in violation of this Act or any amendments made by this 
        Act may, if otherwise permitted by the laws or rules of the 
        court of a State, bring in an appropriate court of that State--
                    (A) an action to enjoin such violation;
                    (B) an action to recover for actual monetary loss 
                from such a violation, or to receive up to $500 in 
                damages for each such violation, whichever is greater; 
                or
                    (C) both such actions.
        It shall be an affirmative defense in any action brought under 
        this paragraph that the defendant has established and 
        implemented, with due care, reasonable practices and procedures 
        to effectively prevent violations of the regulations prescribed 
        under this Act. If the court finds that the defendant willfully 
        or knowingly violated the regulations prescribed under this 
        subsection, the court may, in its discretion, increase the 
        amount of the award to an amount equal to not more than 3 times 
        the amount available under subparagraph (B).
            (2) Statute of limitations.--An action may be commenced 
        under this subsection not later than the earlier of--
                    (A) 5 years after the date on which the alleged 
                violation occurred; or
                    (B) 3 years after the date on which the alleged 
                violation was or should have been reasonably discovered 
                by the aggrieved individual.
            (3) Nonexclusive remedy.--The remedy provided under this 
        subsection shall be in addition to any other remedies available 
        to the individual.
    (b) Civil Penalties.--
            (1) In general.--Any person who the Attorney General 
        determines has violated any section of this Act or of any 
        amendments made by this Act shall be subject, in addition to 
        any other penalties that may be prescribed by law--
                    (A) to a civil penalty of not more than $5,000 for 
                each such violation; and
                    (B) to a civil penalty of not more than $50,000, if 
                the violations have occurred with such frequency as to 
                constitute a general business practice.
            (2) Determination of violations.--Any willful violation 
        committed contemporaneously with respect to the social security 
        numbers of 2 or more individuals by means of mail, 
        telecommunication, or otherwise, shall be treated as a separate 
        violation with respect to each such individual.
            (3) Enforcement procedures.--The provisions of section 
        1128A of the Social Security Act (42 U.S.C. 1320a-7a), other 
        than subsections (a), (b), (f), (h), (i), (j), (m), and (n) and 
        the first sentence of subsection (c) of such section, and the 
        provisions of subsections (d) and (e) of section 205 of such 
        Act (42 U.S.C. 405) shall apply to a civil penalty action under 
        this subsection in the same manner as such provisions apply to 
        a penalty or proceeding under section 1128A(a) of such Act (42 
        U.S.C. 1320a-7a(a)), except that, for purposes of this 
        paragraph, any reference in section 1128A of such Act (42 
        U.S.C. 1320a-7a) to the Secretary shall be deemed to be a 
        reference to the Attorney General.

SEC. 11. FEDERAL INJUNCTIVE AUTHORITY.

    In addition to any other enforcement authority conferred under this 
Act or the amendments made by this Act, the Federal Government shall 
have injunctive authority with respect to any violation by a public 
entity of any provision of this Act or of any amendments made by this 
Act.

                                                         Calendar No. 5

108th CONGRESS

  1st Session

                                 S. 228

_______________________________________________________________________

                                 A BILL

 To amend title 18, United States Code, to limit the misuse of social 
security numbers, to establish criminal penalties for such misuse, and 
                          for other purposes.

_______________________________________________________________________

                            January 29, 2003

            Read the second time and placed on the calendar
```