I
106TH CONGRESS
2D SESSION
H. R. 4857
To amend the Social Security Act to enhance privacy protections for individ-
uals, to prevent fraudulent misuse of the Social Security account number,
and to provide additional safeguards for Social Security and Supple-
mental Security Income beneficiaries with representative payees, and
for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JULY 13, 2000
Mr. SHAW (for himself, Mr. KLECZKA, Mr. FOLEY, Mr. MATSUI, Mr. SAM
JOHNSON of Texas, Mr. WELLER, and Mr. HAYWORTH) introduced the
following bill; which was referred to the Committee on Ways and Means,
and in addition to the Committees on the Judiciary, Banking and Finan-
cial Services, and Commerce, for a period to be subsequently determined
by the Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
A BILL
To amend the Social Security Act to enhance privacy protec-
tions for individuals, to prevent fraudulent misuse of
the Social Security account number, and to provide addi-
tional safeguards for Social Security and Supplemental
Security Income beneficiaries with representative payees,
and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Privacy and Identity Protection Act of 2000’’.
(b) TABLE OF CONTENTS.—The table of contents is
as follows:
Sec. 1. Short title and table of contents.
Sec. 2. Findings.
TITLE I—PROVISIONS RELATING TO THE SOCIAL SECURITY
ACCOUNT NUMBER
Sec. 101. Governmental use and treatment of social security account numbers.
Sec. 102. Regulation of the sale and purchase of the social security account
number in the private sector.
Sec. 103. New criminal penalties for misuse of social security account numbers.
Sec. 104. Extension of civil monetary penalty authority.
Sec. 105. Authority for judicial orders of restitution.
Sec. 106. Confidential treatment of credit header information.
Sec. 107. Law enforcement authority for the Office of the Inspector General of
the Social Security Administration.
TITLE II—PROVISIONS RELATING TO REPRESENTATIVE PAYEES
Sec. 201. Authority to reissue benefits misused by organizational representative
payees.
Sec. 202. Oversight of nongovernmental organizational representative payees.
Sec. 203. Disqualification from service as representative payee upon conviction
of offenses punishable by imprisonment for more than 1 year.
Sec. 204. Fee forfeiture in case of benefit misuse by representative payees.
Sec. 205. Liability of representative payees for misused benefits.
Sec. 206. Extension of civil monetary penalty authority with respect to rep-
resentative payees.
SEC. 2. FINDINGS.
The Congress makes the following findings:
(1) The inappropriate sale or purchase of social
security account numbers is a significant factor in 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 pro-
viders, and other entities have often used social se-
curity account numbers to confirm the identity of an
individual, the sale or purchase of these numbers
often facilitates the commission of criminal activi-
ties, and also can result in serious invasions of indi-
vidual privacy.
(3) The Federal Government requires virtually
every individual in the United States to obtain and
maintain a social security account 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 account
numbers have become tools that can be used to fa-
cilitate crime, fraud, and invasions of the privacy of
the individuals to whom the numbers are assigned.
Because the Federal Government created and main-
tains this system, and because the Federal Govern-
ment does not permit persons to exempt themselves
from those requirements, it is appropriate for the
Government to take steps to stem the abuse of this
system.
(4) A social security account number is simply
a sequence of numbers. In no meaningful sense can
the number itself impart knowledge or ideas. Per-
sons do not sell or transfer such numbers in order
to convey any particularized message, nor to express
to the purchaser any ideas, knowledge, or thoughts.
(5) A social security account number does not
contain, reflect, or convey any publicly significant in-
formation or concern any public issue. The sale of
such numbers in no way facilitates uninhibited, ro-
bust and wide-open public debate; and restrictions
on such sale would not affect public debate.
(6) No one should seek to profit from the sale
of social security account numbers in circumstances
that create a substantial risk of physical, emotional,
or financial harm to the individuals to whom those
numbers are assigned.
(7) Consequently, Congress should enact legis-
lation that will offer individuals assigned such num-
bers necessary protection from the sale and purchase
of social security account numbers in circumstances
that might facilitate unlawful conduct or that might
otherwise likely result in unfair and deceptive prac-
tices.
TITLE I—PROVISIONS RELATING
TO THE SOCIAL SECURITY AC-
COUNT NUMBER
SEC. 101. GOVERNMENTAL USE AND TREATMENT OF SO-
CIAL SECURITY ACCOUNT NUMBERS.
(a) RESTRICTIONS ON THE SALE OF SOCIAL SECU-
RITY ACCOUNT NUMBERS
BY GOVERNMENTAL AGEN-
CIES.—
(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 new
clause:
‘‘(x) No agency or instrumentality of the Federal
Government or of a State or a political subdivision thereof
in possession of any individual’s social security account
number may accept an item of material value in exchange
for such number, or any derivative thereof, except to the
extent specifically authorized by this title.’’.
(2) EFFECTIVE DATE.—The amendment made
by this subsection shall apply with respect to viola-
tions occurring after 180 days after the date of the
enactment of this Act.
(b) PROHIBITION OF PUBLIC ACCESS TO SOCIAL SE-
CURITY ACCOUNT NUMBERS POSSESSED
BY GOVERN-
MENTAL AGENCIES.—
(1) IN GENERAL.—Section 205(c)(2)(C)(viii) of
such Act (42 U.S.C. 405(c)(2)(C)(viii)) is amended
by adding at the end the following new subclause:
‘‘(V) No agency or instrumentality of the Federal
Government or of a State or a political subdivision thereof
may display to the general public any individual’s social
security account number, or any derivative of such num-
ber. Each such agency or instrumentality shall ensure that
access to such numbers, and any derivative of such num-
bers, is restricted to persons who may obtain them in ac-
cordance with applicable law. For purposes of this sub-
clause, the term ‘display to the general public’ in connec-
tion with a social security account number, or a derivative
thereof, means the intentional placing of such number or
derivative in a viewable manner on an Internet site that
is available to the general public or in material made avail-
able or sold to the general public.’’.
(2) EFFECTIVE DATE.—The amendment made
by this subsection shall apply only with respect to
displays originally occurring after 2 years after the
date of the enactment of this Act.
(c) REPORT BY GENERAL ACCOUNTING OFFICE ON
USE BY GOVERNMENTAL AGENCIES AS PERSONAL IDEN-
TIFICATION NUMBER.—