No: 108-23
Date: August 5, 2004

House Committee on Ways and Means Approves H.R. 2971, the Social Security Number Privacy and Identity Theft Prevention Act of 2004

On Wednesday, July 21, 2004, the House Committee on Ways and Means approved H.R. 2971, the "Social Security Number Privacy and Identity Theft Prevention Act of 2004," as amended, by a recorded vote of 33-0.  The bill would restrict the sale, purchase and display of Social Security numbers (SSNs) in the public and private sectors; provide additional measures to protect SSN privacy; help ensure SSNs are assigned accurately; and create criminal and civil monetary penalties for persons who misuse SSNs.

Following are descriptions of provisions of interest to the Social Security Administration (SSA) in the bill as approved by the Committee on Ways and Means:

Restrictions on the Sale or Display to the General Public of SSNs by Governmental Agencies

  • Would prohibit the sale or display of SSNs, or any derivative thereof, to the general public by any executive, legislative, or judicial agency or instrumentality of Federal, State, or local governments and their agents, or by a bankruptcy trustee.  SSNs of deceased individuals are exempt from this provision.
  • Would provide for the following exceptions with respect to the sale of SSNs:

    • if the sale is specifically authorized by the Social Security Act;
    • for law enforcement or national security purposes, as determined by regulations issued by the Attorney General;
    • to comply with Federal, State, or local tax law;
    • by State departments of motor vehicles under limited circumstances;
    • by consumer reporting agencies under certain circumstances;
    • for research advancing the public good (other than market research); and would require the Commissioner and the Attorney General, in cases where the SSN constitutes personally identifiable medical information, to consult with the Department of Health and Human Services (DHHS) to ensure sale or purchase is permitted only in compliance with the Health Insurance Portability and Accountability Act (HIPAA) of 1996.
  • Would permit that SSNs may be sold or displayed to the general public as may be specified in regulations.
  • Would define the term "sell" to mean "to accept an item of material value in exchange for an SSN."  Also defines the term "display to the general public" to mean "to intentionally place an SSN in a viewable manner on an Internet site that is available to the general public or to make the SSN available in any other manner intended to provide access to the SSN by the general public."  Would define "SSN" to include any derivative of such a number.
  • Would include for purposes of these restrictions and exceptions, any derivative of an individual's SSN.  However, the sale and display of the last four digits of the SSN would be excluded from the definition of "derivative" for six years following the issuance of regulations.
  • Would not override more stringent restrictions or limitations on SSN sale or display to the general public currently in Federal law.
  • Would require final regulations regarding exceptions to be issued not later than 18 months following enactment and with an effective date one year after issuance of such regulations.

Regulatory Authority

  • Would grant the Attorney General the authority to issue regulations governing the sale, purchase, or display of SSNs to the general public.  In issuing regulations, the Attorney General must consult with SSA, DHHS, Department of Homeland Security (DHS), Department of Treasury, Federal Trade Commission, Securities and Exchange Commission, and others.  In addition, the Attorney General must consider certain factors such as associated cost and benefits when issuing the regulations.

Prohibition of Display of SSNs on Checks Issued for Payment by Governmental Agencies

  • Would prohibit any executive, legislative, or judicial agency or instrumentality of Federal, State, and local governments and their agents, or by bankruptcy case trustees from including SSNs, or any derivative thereof, on any check issued for payment by such agency or on any document attached to or accompanying the check.
  • Would apply to checks and accompanying documents issued one year after enactment.

Prohibition of the Display of SSNs on Driver's Licenses or Motor Vehicle Registrations

  • Would prohibit the display of SSNs, or any derivative thereof, on driver's licenses, motor vehicle registrations, or any other identification documents issued by a State or local government.  This prohibition would extend to display of SSNs on magnetic strips, bar codes, or other means of communications.
  • Would apply to any licenses, registrations, and other documents issued or reissued one year after enactment.

Prohibition of the Display of Personal Identification Numbers on Government Employee Identification Cards or Tags

  • Would prohibit any executive, legislative, or judicial agency or instrumentality of Federal, State, and local governments and their agents and any person offering benefits in connection with an employee benefit plan from displaying SSNs, or any derivative thereof, on identification cards or tags provided to employees or to family members.  This prohibition would extend to display of SSNs on magnetic strips, bar codes, or other means of communication.
  • Would apply to cards or tags issued one year after enactment.

Prohibition of Inmate Access to SSNs

  • Would prohibit any executive, legislative, or judicial agency or instrumentality of Federal, State, or local governments and their agents from employing, or entering into a contract for the use or employment of, prisoners in any capacity that would allow them access to SSNs of other individuals.  The term "prisoner" means an individual confined in a jail, prison, or other penal institution or correctional facility.
  • Would apply to employment of prisoners upon enactment; however, current prisoner contracts shall remain in effect up to 90 days after enactment.

Measures to Preclude Unauthorized Disclosure of SSNs and Protect the Confidentiality of Such Numbers

  • Would allow access to SSNs, or any derivative thereof, only to those employees of an executive, legislative, or judicial agency of Federal, State, and local governments and their agents, or by a bankruptcy trustee, whose responsibilities require access for administration or enforcement of a government agency's functions.  Would require government agencies to restrict access to the satisfaction of the Commissioner and provide safeguards as determined by the Commissioner to prevent unauthorized access and protect the confidentiality of SSNs.
  • Would be effective one year after enactment.

Prohibition of the Sale, Purchase, and Display to the General Public of the SSN in the Private Sector

  • Would prohibit any person from selling, purchasing, or displaying the SSN, or any derivative thereof, to the general public.  Would also prohibit any person from obtaining or using the SSN to locate or identify an individual with intent to injure or harm the individual or use the individual's identity for any illegal purpose.  In addition, defines the terms "person," "sell," "purchase," "SSN," and "display" including Internet transmissions in the definition of "display."
  • Would provide exceptions to prohibitions of SSN sale or purchase for:

    • law enforcement (including child support obligations);
    • national security (as determined under regulations issued by the Attorney General);
    • public health;
    • emergency health or safety situations;
    • Federal, State, or local tax law compliance;
    • consumer reporting agencies for purposes described in the Fair Credit Reporting Act;
    • governmental research (for advancing the public good and with restrictions to protect the privacy of individual).
  • Would provide exceptions to prohibitions of SSN sale, purchase, or display to the general public:

    • with the voluntary and affirmative written consent of the individual;
    • in other circumstances determined appropriate under regulations issued by the Attorney General.
  • With respect to medical research where SSNs constitute personally identifiable medical information, would require the Commissioner and the Attorney General to consult with HHS to ensure that the sale or purchase is in compliance with the HIPAA of 1996.
  • Would prohibit any person from communicating the SSN of any individual to government agencies without the written permission of the individual, unless requested by the government agency.  In the case of a legally incompetent individual, the legal representative may provide permission.  However, this would not apply to the extent necessary for law enforcement or for national security purposes as determined under regulations issued by the Attorney General.
  • Would prohibit the display of SSNs, or any derivative thereof, on cards or tags (including magnetic strips, bar codes, or other means of communication) for purposes of providing access to goods, services, or benefits.
  • Would prohibit employers and providers of employee benefits or their agents from displaying any SSNs, or any derivative thereof, on identification cards or tags (including magnetic strips, bar codes, or other means of communication) provided to employees or their family members.
  • Would require businesses and others that collect and store SSNs to ensure that no officer or employee has access to such number other than for the purpose of conducting the trade or business.  Would restrict access and provide safeguards in accordance with regulations prescribed by the Commissioner.
  • Would exempt, for purposes of these restrictions and exceptions, the SSNs of deceased individuals.
  • Would provide for fines and/or imprisonment of up to five years for any violation of this section.
  • Would not override other restrictions or limitations on the sale, purchase, display to the general public, or other disclosure of the SSN, in Federal law that provide greater protections for SSNs as determined under any applicable Federal regulation.
  • Would require final regulations to be issued not later than 18 months following enactment and provisions would be effective one year after issuance of such regulations.
  • Would permit the sale or display to the general public of the last four digits of the SSN for six years after the deadline of issuance of regulations.

Confidential Treatment of Credit Header Information

  • Would prohibit a consumer reporting agency from furnishing information regarding the SSN, or any derivative thereof, to any individual other than in a full consumer report issued in accordance with the Fair Credit Reporting Act.
  • Would be effective 90 days after enactment.

Refusal to Do Business Without Receipt of SSN Considered Unfair or Deceptive Act or Practice

  • Would make it an unfair or deceptive act or practice in violation of the Federal Trade Commission Act for any person to refuse to do business with an individual because the individual will not provide his or her SSN, except in certain cases as required under Federal law.
  • Would apply to acts or practices committed after 180 days upon enactment.

Independent Verification of Birth Records Provided in Support of Applications for SSNs

  • Would direct the Commissioner to require independent verification of birth records provided in support of applications for SSNs except in enumeration at birth cases.  The Commissioner may also provide regulations for reasonable exceptions in cases where there is minimum opportunity for fraud.

    • Would apply with respect to applications filed after 270 days after enactment.
  • Would require the Commissioner to study feasibility and cost effectiveness of verifying all identification documents submitted for replacement SSN cards.  The study shall include the feasibility and costs associated with the development of electronic processes for third-party verifications of identification documents issued by Federal, State, and local agencies.

    • Would require the Commissioner to report to the House Committee on Ways and Means and the Senate Finance Committee the results of the study not later than two years after enactment.  The report shall contain such recommendations for legislative changes as the Commissioner considers necessary to implement improvements to the application process.

Enumeration at Birth (EAB)

  • Would require the Commissioner to make improvements to the EAB process.

    • Would require the Commissioner to provide to Congress a report specifying the extent to which the improvements were made not later than one year after enactment.
  • Would require an additional study to determine options to ensure integrity of the EAB process including methods to reconcile hospital birth records with birth registrations submitted to State and local agencies and information provided to SSA.

    • Would require the Commissioner to report to the House Committee on Ways and Means and the Senate Finance Committee not later than 18 months after enactment.  The report shall contain such recommendations for legislative changes as the Commissioner considers necessary to implement needed improvements in the EAB process.

Study Relating to Use of Photographic Identification in Connection with Applications for Benefits, SSNs, and SSN cards

  • Would require the Commissioner to study best methods for requiring and obtaining photographic identification for all applicants for Title II benefits, SSN cards, or SSN replacement cards; and, of providing reasonable exceptions to this requirement.  In addition, the study would evaluate the benefits and costs of instituting this requirement.
  • Would require the Commissioner to report to the House Committee on Ways and Means and the Senate Finance Committee the results not later than 18 months after enactment.  The report shall contain such recommendations for legislative changes as the Commissioner considers necessary relating to requirements for photographic identification of applicants.

Restrictions on Issuance of Multiple Replacement SSN Cards

  • Would require the Commissioner to restrict the issuance of multiple replacement cards to any individual to three per year and ten for life except in cases where the Commissioner determines there is minimal opportunity for fraud.  Would require the Commissioner to issue regulations one year after enactment.  Would require the development of systems controls by the earlier of the issuance of regulations or by the end of one year.

Study Relating to Modification of the Social Security Account Numbering System to Show Work Authorization Status

  • Would require the Commissioner after enactment, in consultation with DHS, to study the best method to modify the SSN issued to individuals who are not United States citizens, not admitted for permanent residency, and not authorized to work.
  • Would require the Commissioner to report to the House Committee on Ways and Means and the Senate Finance Committee not later than one year after enactment.  Such report shall include the Commissioner's recommendation of feasible options for modifying the SSN.

New Criminal Penalties for Misuse of SSNs

  • Would expand the types of SSN misuse to which criminal penalties apply. Specifically, would provide criminal penalties to an individual who discloses,

    sells, or transfers his own SSN with intent to deceive; offers for a fee to improperly acquire an additional SSN or a fake SSN for another person; and, for specific violations of this Act.

  • Would apply to violations which occur after enactment.
  • Would provide criminal penalties for Federal, State, or local government employees or bankruptcy trustees who willfully act or fail to act on or after date of enactment so as to cause a violation of this Act.

Extension of Civil Monetary Penalty Authority

  • Would expand types of activities to which civil monetary penalties and assessment may apply including any person who:

    • uses an SSN obtained through false information;
    • falsely represents an SSN to be his own;
    • knowingly alters an SSN card or possesses a card with intent to alter it;
    • knowingly buys or sells a card that is, or purports to be, a card issued by the Commissioner or possesses such a card with intent to buy or sell;
    • counterfeits or possesses a counterfeit SSN card with intent to buy or sell;
    • discloses, uses, or compels disclosure of, or knowingly sells or purchases, in violation of any Federal law, the SSN of any person;
    • provides false information about a person's true identity to the Commissioner, with intent to deceive, in connection with the establishment and maintenance of records;
    • without lawful authority offers to acquire, or to assist in acquiring, for a fee an additional SSN or a number that purports to be an SSN for another individual; or
    • discloses, sells, or transfers his own SSN to any other person with intent to deceive.
  • Would apply to violations committed after enactment.
  • Would also provide civil monetary penalties for any officer or employee of any executive, legislative, or judicial agency or instrumentality of Federal, State, or local government or their agents or bankruptcy trustees who willfully act or fail to act on or after date of enactment so as to cause a violation of this Act.

Criminal Penalties for SSA Employees Including Contractors, State DDS, and Volunteers Who Knowingly and Fraudulently Issue SSNs or SSN Cards

  • Would provide for criminal penalties in situations in which an SSA employee is convicted of, attempts to, or conspires to fraudulently sell or transfer an SSN or SSN card.  Penalties are based on the number of SSNs or SSN cards fraudulently sold or transferred as follows:  one to five years of imprisonment for no more than 50 SSNs or SSN cards; not less than five and up to ten years for more than 50 but less than 100 SSNs or SSN cards; and not less than ten and up to 20 years for more than 100 SSNs or SSN cards.
  • Would apply to violations occurring on or after enactment.

Enhancements of Penalties for Terrorism, Drug Trafficking, Crimes of Violence, and Prior Offenses

  • Would enhance criminal penalties under Titles II, VIII, and XVI of the Social Security Act with respect to repeat offenders and violations committed to facilitate a drug trafficking crime, a crime of violence, or an act of international or domestic terrorism.
  • Would apply to violations occurring after enactment.