I
107TH CONGRESS
2D SESSION
H. R. 4513
To strengthen the authority of the Federal Government to protect individuals
from certain acts and practices in the sale and purchase of Social
Security numbers and Social Security account numbers, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 18, 2002
Mr. MARKEY introduced the following bill; which was referred to the Com-
mittee on Energy and Commerce, and in addition to the Committee on
Ways and Means, 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 strengthen the authority of the Federal Government to
protect individuals from certain acts and practices in
the sale and purchase of Social Security numbers and
Social Security account numbers, 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.
This Act may be cited as the ‘‘Social Security Num-
ber Protection Act of 2002’’.
from those requirements, it is appropriate for the
Government to take steps to stem the abuse of this
system.
(4) A Social Security number is simply a se-
quence of numbers. In no meaningful sense can the
number itself impart knowledge or ideas. Persons 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 number does not contain,
reflect, or convey any publicly significant informa-
tion or concern any public issue. The sale of such
numbers in no way facilitates uninhibited, robust
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 numbers in circumstances that
create a substantial risk of physical, emotional, or fi-
nancial harm to the individuals to whom those num-
bers 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 numbers in circumstances that
might facilitate unlawful conduct or that might oth-
erwise likely result in unfair and deceptive practices.
SEC. 3. DEFINITIONS.
In this Act:
(1) COMMISSION.—The term ‘‘Commission’’
means the Federal Trade Commission.
(2) PERSON.—The term ‘‘person’’ means any
individual, partnership, corporation, trust, estate, co-
operative, association, or any other entity.
(3) SALE.—The term ‘‘sale’’ means obtaining,
directly or indirectly, anything of value in exchange
for a Social Security number or Social Security ac-
count number. Such term does not include the sub-
mission of such numbers as part of the process for
applying for any type of Government benefit or pro-
grams (such as grant or loan applications or welfare
or other public assistance programs). Such term also
does not include transfers of such numbers as part
of a data matching program under the Computer
Matching and Privacy Protection Act.
(4) PURCHASE.—The term ‘‘purchase’’ means
providing directly or indirectly, anything of value in
exchange for a Social Security number or Social Se-
curity account number. Such term does not include
the submission of such numbers as part of the proc-
ess for applying for any type of Government benefit
or programs (such as grant or loan applications or
welfare or other public assistance programs). Such
term also does not include transfers of such numbers
as part of a data matching program under the Com-
puter Matching and Privacy Protection Act.
(5) SOCIAL SECURITY NUMBER; SOCIAL SECU-
RITY ACCOUNT NUMBER.—The terms ‘‘Social Secu-
rity number’’ and ‘‘Social Security account number’’
have the meaning given those terms in section 208
of the Social Security Act (42 U.S.C. 408).
(6) 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.
SEC. 4. REGULATION OF THE SALE AND PURCHASE OF SO-
CIAL SECURITY NUMBERS AND SOCIAL SECU-
RITY ACCOUNT NUMBERS.
(a) PROHIBITION.—It shall be unlawful for any per-
son to sell or purchase a Social Security number or Social
Security account number in a manner that violates a regu-
lation promulgated by the Commission under subsection
(b) of this section.
(b) REGULATIONS.—
(1) RESTRICTIONS
AUTHORIZED.—The Com-
mission, after consultation with the Commissioner of
Social Security, the Department of Justice, and
other agencies as the Commission deems appro-
priate, shall promulgate regulations restricting the
sale and purchase of Social Security numbers and
Social Security account numbers and any unfair or
deceptive acts or practices in connection with the
sale and purchase of Social Security numbers and
Social Security account numbers.
(2) LIMITATIONS ON RESTRICTIONS.—In pro-
mulgating such regulations, the Commission shall
impose restrictions and conditions on the sale and
purchase of Social Security numbers and Social Se-
curity account numbers that are no broader than
necessary—
(A) to provide reasonable assurance that
Social Security numbers and Social Security ac-
count numbers will not be used to commit or
facilitate fraud, deception, or crime; and
(B) to prevent an undue risk of bodily,
emotional, or financial harm to individuals.
For purposes of subparagraph (B), the Commission
shall consider the nature, likelihood and severity of
the anticipated harm; the nature, likelihood and ex-
tent of any benefits that could be realized from the
sale or purchase of the numbers; and any other rel-
evant factors.
(3) EXCEPTIONS.—The regulations promul-
gated pursuant to paragraph (1) shall include excep-
tions which permit the sale and purchase of Social
Security numbers and Social Security account
numbers—
(A) to the extent necessary for law enforce-
ment or national security purposes;
(B) to the extent necessary for public
health purposes;
(C) to the extent necessary in emergency
situations to protect the health or safety of 1
or more individuals;
(D) to the extent necessary for research
conducted for the purpose of advancing public
knowledge, on the condition that the researcher
provides adequate assurances that—
(i) the Social Security numbers or So-
cial Security account numbers will not be
used to harass, target, or publicly reveal
information concerning any identifiable in-
dividuals;
(ii) information about identifiable in-
dividuals obtained from the research will
not to be used to make decisions that di-
rectly affect the rights, benefits, or privi-
leges of specific individuals; and
(iii) the researcher has in place appro-
priate safeguards to protect the privacy
and confidentiality of any information
about identifiable individuals;
(E) to the extent consistent with an indi-
vidual’s voluntary and affirmative written con-
sent to the sale or purchase of a Social Security
number or Social Security account number that
has been assigned to that individual; and
(F) under other appropriate circumstances
as the Commission may determine and as are
consistent with the findings in section 2 and the
principles in paragraph (2).
(c) RULEMAKING.—
(1) DEADLINE FOR ACTION.—Not later than 1
year after the date of enactment of this Act, the
Commission shall promulgate the regulations under
subsection (b) of this section, in accordance with
section 553 of title 5, United States Code.
(2) EFFECTIVE
DATES.—Subsection (a), the
regulations promulgated under subsection (b), and
section 5 shall take effect 30 days after the date on
which the final regulations issued under this section
are published in the Federal Register.
(d) ENFORCEMENT.—Any violation of a regulation
promulgated under subsection (b) of this section shall be
treated as a violation of a regulation under section
18(a)(1)(B) of the Federal Trade Commission Act (15
U.S.C. 57a(a)(1)(B)) regarding unfair or deceptive acts
or practices.
(e) ADMINISTRATION AND APPLICABILITY OF ACT.—
(1) THE COMMISSION.—The Commission shall
prevent any person from violating this section, and
any regulation promulgated thereunder, in the same
manner, by the same means, and with the same ju-
risdiction, powers, and duties as though all applica-
ble terms and provisions of the Federal Trade Com-
mission Act (15 U.S.C. 41 et seq.) were incor-
porated into and made a part of this Act. Any per-
son who violates such regulation shall be subject to
the penalties and entitled to the privileges and im-
munities provided in the Federal Trade Commission
Act (15 U.S.C. 41 et seq.) as though all applicable
terms and provisions of the Federal Trade Commis-
sion Act (15 U.S.C. 41 et seq.) were incorporated
into and made a part of this Act. Nothing contained
in this Act shall be construed to limit the authority
of the Commission under any other provision of law.
(2) ACTIONS BY STATES.—
(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 af-
fected by an act or practice that violates any
regulation of the Commission promulgated
under subsection (b), 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 act or practice;
(ii) enforce compliance with the regu-
lation;
(iii) obtain damages, restitution, or
other compensation on behalf of residents
of the State; or
(iv) obtain such other legal and equi-
table relief as the district court may con-
sider to be appropriate.
Before filing an action under this subsection,
the attorney general of the State involved shall
provide to the Commission and to the Attorney
General a written notice of that action and a
copy of the complaint for that action. If the
State attorney general determines that it is not
feasible to provide the notice described in this
subparagraph before the filing of the action, the
State attorney general shall provide the written
notice and the copy of the complaint to the
Commission and to the Attorney General as
soon after the filing of the complaint as prac-
ticable.
(B) COMMISSION AND ATTORNEY GENERAL
AUTHORITY.—On receiving notice under sub-
paragraph (A), the Commission and the Attor-
ney General each shall have the right—
(i) to move to stay the action, pending
the final disposition of a pending Federal
matter as described in subparagraph (C);
(ii) to intervene in an action under
clause (i);
(iii) upon so intervening, to be heard
on all matters arising therein; and
(iv) to file petitions for appeal.
(C) PENDING CRIMINAL PROCEEDINGS.—If
the Attorney General has instituted a criminal
proceeding or the Federal Trade Commission
has instituted a civil action for a violation of
this Act or any regulations thereunder, no State
may, during the pendency of such proceeding or
action, bring an action under this section
against any defendant named in the criminal
proceeding or civil action for any violation of
this section that is alleged in that proceeding or
action.
(D) RULE OF CONSTRUCTION.—For pur-
poses of bringing any civil action under sub-
paragraph (A), nothing in this Act shall be con-
strued to prevent an attorney general of a State
from exercising the powers conferred on the at-
torney general by the laws of that State to con-
duct investigations, administer oaths and affir-
mations, or compel the attendance of witnesses
or the production of documentary and other evi-
dence.
(E) VENUE; SERVICE OF PROCESS.—Any
action brought under this section may be
brought in any district court of the United
States that meets applicable requirements relat-
ing to venue under section 1391 of title 28,
United States Code. In an action brought under
this section, process may be served in any dis-
trict in which the defendant is an inhabitant or
may be found.
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