Social Security Number Misuse Prevention Act - Amends the federal criminal code to prohibit the display, sale, or purchase of Social Security numbers without the affirmatively expressed consent of the individual, except in specified circumstances. Directs the Attorney General to study and report to Congress on all the uses of Social Security numbers permitted, required, authorized, or excepted under any federal law, including the impact of such uses on privacy and data security.
Establishes a public records exception to the prohibition. Directs the Comptroller General to study and report to Congress on Social Security numbers in public records. Grants the Attorney General rulemaking authority to enforce this Act's prohibition and to implement and clarify the permitted uses occurring as a result of an interaction between businesses, governments, or business and government.
Amends title II (Old Age, Survivors, and Disability Insurance) of the Social Security Act (SSA) to prohibit: (1) the use of Social Security numbers on checks issued for payment by governmental agencies; and (2) inmate access to Social Security account numbers.
Prohibits a commercial entity from requiring an individual to provide a Social Security number when purchasing a commercial good or service or denying an individual the good or service for refusing to provide that number, with exceptions. Establishes civil and criminal penalties.
Extends civil monetary penalties for misuse of a Social Security number.
Provides for: (1) criminal penalties under SSA title II for the misuse of a Social Security number; (2) civil actions and civil penalties against persons who violate this Act; and (3) federal injunctive authority with respect to any violation by a public entity.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 29 Introduced in Senate (IS)]
109th CONGRESS
1st Session
S. 29
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 24, 2005
Mrs. Feinstein (for herself and Mr. Leahy) introduced the following
bill; which was read twice and referred to the Committee on the
Judiciary
_______________________________________________________________________
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, the
impact of such uses on privacy and data security, 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,
procedures, and technologies 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.
(F) The impact of such uses on privacy.
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 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.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S216-217)
Read twice and referred to the Committee on the Judiciary. (text of measure as introduced: CR S217-221)
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