confirm (or not confirm) the validity of the informa-
tion provided; 
(2) be scalable and accommodate reasonably an-
ticipated volumes of verification requests from per-
mitted entities with commercially reasonable uptime 
and availability; and 
(3) allow permitted entities to submit— 
(A) one or more individual requests elec-
tronically for real-time machine-to-machine (or 
similar functionality) accurate responses; and 
(B) multiple requests electronically, such 
as those provided in a batch format, for accu-
rate electronic responses within a reasonable pe-
riod of time from submission, not to exceed 24 
hours. 
(e) CERTIFICATION REQUIRED.—Before providing 
confirmation of fraud protection data to a permitted enti-
ty, the Commissioner shall ensure that the Commissioner 
has a certification from the permitted entity that is dated 
not more than 2 years before the date on which that con-
firmation is provided that includes the following declara-
tions: 
(1) The entity is a permitted entity. 
(2) The entity is in compliance with this sec-
tion. 
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(3) The entity is, and will remain, in compli-
ance with its privacy and data security requirements, 
as described in title V of the Gramm-Leach-Bliley 
Act (15 U.S.C. 6801 et seq.), with respect to infor-
mation the entity receives from the Commissioner 
pursuant to this section. 
(4) The entity will retain sufficient records to 
demonstrate its compliance with its certification and 
this section for a period of not less than 2 years. 
(f) CONSUMER CONSENT.— 
(1) IN GENERAL.—Notwithstanding any other 
provision of law or regulation, a permitted entity 
may submit a request to the database or similar re-
source described in subsection (c) only— 
(A) pursuant to the written, including elec-
tronic, consent received by a permitted entity 
from the individual who is the subject of the re-
quest; and 
(B) in connection with a credit transaction 
or any circumstance described in section 604 of 
the Fair Credit Reporting Act (15 U.S.C. 
1681b). 
(2) ELECTRONIC CONSENT REQUIREMENTS.— 
For a permitted entity to use the consent of an indi-
vidual received electronically pursuant to paragraph 
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(1)(A), the permitted entity must obtain the individ-
ual’s electronic signature, as defined in section 106 
of the Electronic Signatures in Global and National 
Commerce Act (15 U.S.C. 7006). 
(3) EFFECTUATING
ELECTRONIC
CONSENT.— 
No provision of law or requirement, including section 
552a of title 5, United States Code, shall prevent 
the use of electronic consent for purposes of this 
subsection or for use in any other consent based 
verification under the discretion of the Commis-
sioner. 
(g) COMPLIANCE AND ENFORCEMENT.— 
(1) AUDITS AND MONITORING.— 
(A) IN
GENERAL.—The Commissioner 
may— 
(i) conduct audits and monitoring 
to— 
(I) ensure proper use by per-
mitted entities of the database or 
similar resource described in sub-
section (c); and 
(II) deter fraud and misuse by 
permitted entities with respect to the 
database or similar resource described 
in subsection (c); and 
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(ii) terminate services for any per-
mitted entity that prevents or refuses to 
allow the Commissioner to carry out the 
activities described in clause (i). 
(2) ENFORCEMENT.— 
(A) IN
GENERAL.—Notwithstanding any 
other provision of law, including the matter pre-
ceding paragraph (1) of section 505(a) of the 
Gramm-Leach-Bliley Act (15 U.S.C. 6805(a)), 
any violation of this section and any certifi-
cation made under this section shall be enforced 
in accordance with paragraphs (1) through (7) 
of such section 505(a) by the agencies described 
in those paragraphs. 
(B) RELEVANT INFORMATION.—Upon dis-
covery by the Commissioner, pursuant to an 
audit described in paragraph (1)(A), of any vio-
lation of this section or any certification made 
under this section, the Commissioner shall for-
ward any relevant information pertaining to 
that violation to the appropriate agency de-
scribed in subparagraph (A) for evaluation by 
the agency for purposes of enforcing this sec-
tion. 
(h) RECOVERY OF COSTS.— 
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(1) IN GENERAL.— 
(A) IN GENERAL.—Amounts obligated to 
carry out this section shall be fully recovered 
from the users of the database or verification 
system by way of advances, reimbursements, 
user fees, or other recoveries as determined by 
the Commissioner. The funds recovered under 
this paragraph shall be deposited as an offset-
ting collection to the account providing appro-
priations for the Social Security Administration, 
to be used for the administration of this section 
without fiscal year limitation. 
(B) PRICES FIXED BY COMMISSIONER.— 
The Commissioner shall establish the amount to 
be paid by the users under this paragraph, in-
cluding the costs of any services or work per-
formed, such as any appropriate upgrades, 
maintenance, and associated direct and indirect 
administrative costs, in support of carrying out 
the purposes described in this section, by reim-
bursement or in advance as determined by the 
Commissioner. The amount of such prices shall 
be periodically adjusted by the Commissioner to 
ensure that amounts collected are sufficient to 
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fully offset the cost of the administration of this 
section. 
(2) INITIAL
DEVELOPMENT.—The Commis-
sioner shall not begin development of a verification 
system to carry out this section until the Commis-
sioner determines that amounts equal to at least 50 
percent of program start-up costs have been col-
lected under paragraph (1). 
(3) EXISTING RESOURCES.—The Commissioner 
of Social Security may use funds designated for in-
formation technology modernization to carry out this 
section. 
(4) ANNUAL
REPORT.—The Commissioner of 
Social Security shall annually submit to the Com-
mittee on Ways and Means of the House of Rep-
resentatives and the Committee on Finance of the 
Senate a report on the amount of indirect costs to 
the Social Security Administration arising as a re-
sult of the implementation of this section. 
Æ 
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