[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2876 Introduced in Senate (IS)]







106th CONGRESS
  2d Session
                                S. 2876

  To amend the Social Security Act to enhance privacy protections for 
   individuals, to prevent fraudulent misuse of the social security 
    account number, and to provide additional safeguards for Social 
     Security and Supplemental Security Income beneficiaries with 
             representative payees, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 14, 2000

  Mr. Bunning introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Social Security Act to enhance privacy protections for 
   individuals, to prevent fraudulent misuse of the social security 
    account number, and to provide additional 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 Representatives 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 
                            representative 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 providers, 
        and other entities have often used social security account 
        numbers to confirm the identity of an individual, the sale or 
        purchase of these numbers often facilitates the commission of 
        criminal activities, 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 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 
        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 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. 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 account number does not contain, 
        reflect, or convey any publicly significant information 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 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 legislation that 
        will offer individuals assigned such numbers 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 practices.

   TITLE I--PROVISIONS RELATING TO THE SOCIAL SECURITY ACCOUNT NUMBER

SEC. 101. GOVERNMENTAL USE AND TREATMENT OF SOCIAL SECURITY ACCOUNT 
              NUMBERS.

    (a) Restrictions on the Sale of Social Security Account Numbers 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 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 violations occurring after 180 days 
        after the date of the enactment of this Act.
    (b) Prohibition of Public Access to Social Security Account Numbers 
Possessed by Governmental 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 number. Each such agency or instrumentality shall 
ensure that access to such numbers, and any derivative of such numbers, 
is restricted to persons who may obtain them in accordance with 
applicable law. For purposes of this subclause, the term `display to 
the general public' in connection 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 available 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 Identification Number.--
            (1) Study.--The Comptroller General of the United States 
        shall undertake a study of--
                    (A) the current usage, by agencies and 
                instrumentalities in all branches of the Federal 
                Government and by agencies and instrumentalities of 
                States and political subdivisions thereof, of the 
                social security account numbers of individuals, and 
                derivatives of such numbers, for purposes of 
                identification of such individuals, and
                    (B) the most effective means by which any such 
                usage extending beyond the original purposes of the 
                social security account number may be minimized.
            (2) Report.--Not later than 1 year after the date of the 
        enactment of this Act, the Comptroller General shall submit a 
        report to the Committee on Ways and Means of the House of 
        Representatives and the Committee on Finance of the Senate 
        setting forth the results of the study conducted pursuant to 
        this subsection. Such report shall contain such 
        recommendations, including proposals for legislative changes, 
        as the Comptroller General deems appropriate.
    (d) Prohibition of Use of Social Security Account Number 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)) (as amended by subsection 
        (a)) is amended further by adding at the end the following new 
        clause:
    ``(xi) No agency or instrumentality of the Federal Government or of 
a State or a political subdivision thereof may include the social 
security account number of any individual, or any derivative of such 
number, on any check issued for any payment by the Federal Government, 
any State or political subdivision thereof, or any agency or 
instrumentality thereof.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply with respect to violations occurring after 2 years 
        after the date of the enactment of this Act.
    (e) Independent Verification of Birth Records Provided in Support 
of Applications for Social Security Account Numbers.--
            (1) In general.--Section 205(c)(2)(B)(ii) of such Act (42 
        U.S.C. 405(c)(2)(B)(ii)) is amended by adding at the end the 
        following new sentence: ``With respect to an application for a 
        social security account number for an individual other than for 
        purposes of enumeration at birth, the Commissioner shall 
        require independent verification of any birth record provided 
        by the applicant in support of the application.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to applications filed after 1 year 
        after the date of the enactment of this Act.
            (3) Report on enumeration at entry.--Not later than 1 year 
        after the date of the enactment of this Act, the Commissioner 
        of Social Security and the Attorney General of the United 
        States shall jointly submit a report detailing the progress of 
        the Social Security Administration and the Immigration and 
        Naturalization Service in implementing a process for 
        enumeration at entry for aliens entering the United States. 
        Such report shall be submitted to the Committee on Ways and 
        Means and the Committee on the Judiciary of the House of 
        Representatives and the Committee on Finance and the Committee 
        on the Judiciary of the Senate.
    (f) Prohibition of Appearance of Social Security Account Numbers on 
Driver's Licenses or Motor Vehicle Registration.--
            (1) In general.--Section 205(c)(2)(C)(vi) of such Act (42 
        U.S.C. 405(c)(2)(C)(vi)) is amended--
                    (A) by inserting ``(I)'' after ``(vi)''; and
                    (B) by adding at the end the following new 
                subclause:
    ``(II) A State (or political subdivision thereof), in the 
administration of any driver's license or motor vehicle registration 
law within its jurisdiction, may not disclose the social security 
account numbers issued by the Commissioner of Social Security, or any 
derivative of such numbers, on any driver's license or motor vehicle 
registration or any other document issued by such State or political 
subdivision to an individual for purposes of identification of such 
individual.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply with respect to licenses, registrations, and other 
        documents issued or reissued after 180 days after the date of 
        the enactment of this Act.
    (g) Prohibition of Display by Governmental Agencies of Personal 
Identification Number.--
            (1) In general.--Section 205(c)(2)(C) of the Social 
        Security Act (42 U.S.C. 405(c)(2)(C)) (as amended by the 
        preceding provisions of this section) is amended further by 
        adding at the end the following new clause:
    ``(xii) No agency or instrumentality of the Federal Government or 
of a State or political subdivison thereof may display the social 
security account number, or any deriviative of such number, on any card 
or tag provided to the employee for purposes of identification. For 
purposes of this clause, the term `display' in connection with a social 
security account number, or a derivative thereof, means the intentional 
placing of such number or derivitive in a viewable manner on a card or 
tag that is commonly provided to the individual and is to be maintained 
by the individual.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply with respect to violations occurring after 1 year 
        after the date of the enactment of this Act.

SEC. 102. REGULATION OF THE SALE AND PURCHASE OF THE SOCIAL SECURITY 
              ACCOUNT NUMBER IN THE PRIVATE SECTOR.

    (a) Definitions.--In this section:
            (1) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
            (2) Person.--The term ``person'' means any individual, 
        partnership, corporation, trust, estate, cooperative, 
        association, or any other entity.
            (3) Sale.--The term ``sell'' in connection with a social 
        security account number means to obtain, directly or 
        indirectly, anything of value in exchange for such number. Such 
        term does not include the submission of such number as part of 
        the process for applying for any type of Government benefits or 
        programs (such as grants or loans or welfare or other public 
        assistance programs). Such term also does not include transfers 
        of such number as part of a data matching program under the 
        Computer Matching and Privacy Protection Act and the amendments 
        made thereby.
            (4) Purchase.--The term ``purchase'' in connection with a 
        social security account number means to provide, directly or 
        indirectly, anything of value in exchange for such number. Such 
        term does not include the submission of such number as part of 
        the process 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 number as part of a data matching 
        program under the Computer Matching and Privacy Protection Act 
        and the amendments made thereby.
            (5) Social security account number.--The term `social 
        security account number' has the meaning given such term 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.
    (b) Prohibition.--It shall be unlawful for any person to sell or 
purchase a social security account number in a manner that violates a 
regulation promulgated by the Commission under subsection (c) of this 
section.
    (c) Regulations.--
            (1) Restrictions authorized.--The Commission, after 
        consultation with the Commissioner of Social Security, the 
        Department of Justice, and other agencies as the Commission 
        deems appropriate, shall promulgate regulations restricting the 
        sale and purchase of social security account numbers and any 
        unfair or deceptive acts or practices in connection with the 
        sale and purchase of social security account numbers.
            (2) Limitations on restrictions.--In promulgating such 
        regulations, the Commission shall impose restrictions and 
        conditions on the sale and purchase of social security account 
        numbers that are no broader than necessary--
                    (A) to provide reasonable assurance that social 
                security account 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 extent of any benefits that could 
        be realized from the sale or purchase of the numbers; and any 
        other relevant factors.
            (3) Exceptions.--The regulations promulgated pursuant to 
        paragraph (1) shall include exceptions which permit the sale 
        and purchase of social security account numbers--
                    (A) to the extent necessary for law enforcement 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 account numbers 
                        will not be used to harass, target, or publicly 
                        reveal information concerning any identifiable 
                        individuals;
                            (ii) information about identifiable 
                        individuals obtained from the research will not 
                        to be used to make decisions that directly 
                        affect the rights, benefits, or privileges of 
                        specific individuals; and
                            (iii) the researcher has in place 
                        appropriate safeguards to protect the privacy 
                        and confidentiality of any information about 
                        identifiable individuals;
                    (E) to the extent consistent with an individual's 
                voluntary and affirmative written consent to the sale 
                or purchase of a social security account number that 
                has been assigned to that individual; and
                    (F) under other appropriate circumstances as the 
                Commission may determine are consistent with the 
                findings in section 2 of this Act and the principles in 
                paragraph (2).
    (d) 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 (c) of this section, in 
        accordance with section 553 of title 5, United States Code.
            (2) Effective dates.--Subsection (b) and the regulations 
        promulgated under subsection (c) shall take effect 30 days 
        after the date on which the final regulations issued under this 
        section are published in the Federal Register.
    (e) Enforcement.--Any violation of a regulation promulgated under 
subsection (c) 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.
    (f) 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 jurisdiction, powers, and duties as though 
        all applicable terms and provisions of the Federal Trade 
        Commission Act (15 U.S.C. 41 et seq.) were incorporated into 
        and made a part of this section. Any person who violates such 
        regulation shall be subject to the penalties and entitled to 
        the privileges and immunities 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 Commission Act (15 
        U.S.C. 41 et seq.) were incorporated into and made a part of 
        this section. Nothing contained in this section 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 affected by an act or 
                practice that violates any regulation of the Commission 
                promulgated under subsection (c), 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 
                        regulation;
                            (iii) obtain damages, restitution, or other 
                        compensation on behalf of residents of the 
                        State; or
                            (iv) obtain such other legal and equitable 
                        relief as the district court may consider 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 practicable.
                    (B) Commission and attorney general authority.--On 
                receiving notice under subparagraph (A), the Commission 
                and the Attorney 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 purposes of bringing 
                any civil action under subparagraph (A), nothing in 
                this Act shall be construed to prevent an attorney 
                general of a State from exercising the powers conferred 
                on the attorney general by the laws of that State to 
                conduct investigations, administer oaths and 
                affirmations, or compel the attendance of witnesses or 
                the production of documentary and other evidence.
                    (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 
                relating to venue under section 1391 of title 28, 
                United States Code. In an action brought under this 
                section, process may be served in any district in which 
                the defendant is an inhabitant or may be found.
    (g) Unfair or Deceptive Act or Practice.--Any person who refuses to 
do business with an individual because the individual will not consent 
to the receipt by such person of the social security account number of 
such individual shall be considered to have committed an unfair or 
deceptive act or practice in violation of section 5 of the Federal 
Trade Commission Act (15 U.S.C. 45). Action may be taken under such 
section 5 against such a person.

SEC. 103. NEW CRIMINAL PENALTIES FOR MISUSE OF SOCIAL SECURITY ACCOUNT 
              NUMBERS.

    (a) Sale and Purchase of Social Security Account Numbers.--Section 
208 of the Social Security Act (42 U.S.C. 408) is amended--
            (1) in subsection (a)(8), by striking ``or'' and by 
        inserting ``, or knowingly sells or purchases'' after ``the 
        disclosure of'';
            (2) in subsection (c), by striking the last sentence;
            (3) by redesignating subsection (d) as subsection (e); and
            (4) by inserting after subsection (c) the following new 
        subsection:
    ``(d)(1) For purposes of subsection (a)(7), the term `social 
security account number' means a number assigned by the Commissioner of 
Social Security under section 205(c)(2) whether or not, in actual use, 
such number is called a social security account number.
    ``(2) For purposes of subsection (a)(8), the term `sell' in 
connection with a social security account number means to obtain, 
directly or indirectly, anything of value in exchange for such number. 
Such term does not include the submission of such number as part of the 
process for applying for any type of Government benefits or programs 
(such as grants or loans or welfare or other public assistance 
programs). Such term also does not include a transfer of such number as 
part of a data matching program under the Computer Matching and Privacy 
Protection Act and the amendments made thereby.
    ``(3) For purposes of subsection (a)(8), the term `purchase' in 
connection with a social security account number means to provide, 
directly or indirectly, anything of value in exchange for such number. 
Such term does not include the submission of such number as part of the 
process for applying for any type of Government benefits or programs 
(such as grants or loans or welfare or other public assistance 
programs). Such term also does not include a transfer of such number as 
part of a data matching program under the Computer Matching and Privacy 
Protection Act and the amendments made thereby.''.
    (b) Additional Provisions.--
            (1) In general.--Section 208(a) of such Act is amended 
        further--
                    (A) in paragraph (8), by adding ``or'' at the end; 
                and
                    (B) by inserting after paragraph (8) the following 
                new paragraphs:
            ``(9) 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 that purports to be a 
        social security account number; or
            ``(10) being an officer or employee of any agency of the 
        Federal Government or of a State or political subdivision 
        thereof 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), (viii)(V), (x), or 
        (xi) of section 205(c)(2)(C);''.
            (2) Effective dates.--Section 208(a)(9) of the Social 
        Security Act (added by paragraph (1)) shall apply with respect 
        to violations occurring after the date of the enactment of this 
        Act. Section 208(a)(10) of such Act (added by paragraph (1)) 
        shall apply with respect to violations occurring on an after 
        the effective date applicable with respect to such violations 
        under section 101.

SEC. 104. EXTENSION OF CIVIL MONETARY PENALTY AUTHORITY.

    (a) Treatment of Withholding of Material Facts.--
            (1) Civil penalties.--Section 1129(a)(1) of the Social 
        Security Act (42 U.S.C. 1320a-8(a)(1)) is amended in the first 
        sentence--
                    (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 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 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.--
        Section 1129A(a) of such Act (42 U.S.C. 1320a-8a(a)) is amended 
        in the first sentence--
                    (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 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 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 such Act (42 U.S.C. 1320a-8(a)) is 
amended further--
            (1) by redesignating paragraph (2) as paragraph (4);
            (2) by designating the last sentence of paragraph (1) as a 
        new paragraph (2), appearing after and below paragraph (1); and
            (3) by inserting after paragraph (2) (as designated under 
        paragraph (2) of this subsection) 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 buys or sells 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 buy or sell it;
            ``(E) counterfeits a social security card, or possesses a 
        counterfeit social security card with intent to buy or sell it;
            ``(F) discloses, uses, compels the disclosure of, or 
        knowingly 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 any agency of the 
        Federal Government or of a State or political subdivision 
        thereof 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), (viii)(V), (x), or 
        (xi) 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 such 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 XVI,'' and inserting ``In the case of 
any other amounts recovered under this section,''.
    (d) Conforming Amendments.--
            (1) Section 1129(b)(3)(A) of such 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 such 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 such 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.--The amendments made by this section shall 
apply with respect to violations committed after the date of the 
enactment of this Act, except that section 1129(a)(3)(I) of the Social 
Security Act (added by subsection (b)) shall apply with respect to 
violations occurring on or after the effective date provided in 
connection with such violations under section 101.

SEC. 105. AUTHORITY FOR JUDICIAL ORDERS OF RESTITUTION.

    (a) Amendments to Title II.--Section 208 of the Social Security Act 
(42 U.S.C. 408) is amended--
            (1) by redesignating subsections (b), (c), and (d) as 
        subsections (c), (d), and (e), respectively; and
            (2) by inserting after subsection (a) the following new 
        subsection:
    ``(b)(1) Any Federal court, when sentencing a defendant convicted 
of an offense under subsection (a), may order, in addition to or in 
lieu of any other penalty authorized by law, that the defendant make 
restitution to the Social Security Administration.
    ``(2) Sections 3612, 3663, and 3664 of title 18, United States 
Code, shall apply with respect to the issuance and enforcement of 
orders of restitution under this subsection. In so applying such 
sections, the Social Security Administration shall be considered the 
victim.
    ``(3) If the court does not order restitution, or orders only 
partial restitution, under this section, the court shall state on the 
record the reasons therefor.''.
    (b) Amendments to Title XVI.--Section 1632 of such Act (42 U.S.C. 
1383a) is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following new 
        subsection:
    ``(b)(1) Any Federal court, when sentencing a defendant convicted 
of an offense under subsection (a), may order, in addition to or in 
lieu of any other penalty authorized by law, that the defendant make 
restitution to the Social Security Administration.
    ``(2) Sections 3612, 3663, and 3664 of title 18, United States 
Code, shall apply with respect to the issuance and enforcement of 
orders of restitution under this subsection. In so applying such 
sections, and the Social Security Administration shall be considered 
the victim.
    ``(3) If the court does not order restitution, or orders only 
partial restitution, under this section, the court shall state on the 
record the reasons therefor.''.
    (c) Special Account for Receipt of Restitution Payments.--Section 
704(b) of such Act (42 U.S.C. 904(b)) is amended by adding at the end 
the following new paragraph:
    ``(3)(A) Except as provided in subparagraph (B), amounts received 
by the Social Security Administration pursuant to an order of 
restitution under section 208(b) or 1632(b) shall be credited to a 
special fund established in the Treasury of the United States for 
amounts so received or recovered. The amounts so credited, to the 
extent and in the amounts provided in advance in appropriations Acts, 
shall be available to defray expenses incurred in carrying out title II 
and title XVI.
    ``(B) Subparagraph (A) shall not apply with respect to amounts 
received in connection with misuse by a representative payee (within 
the meaning of sections 205(j) and 1631(a)(2)) of funds paid as 
benefits under title II or XVI. Such amounts received in connection 
with misuse of funds paid as benefits under title II shall be 
transferred to the Managing Trustee of the Federal Old-Age and 
Survivors Insurance Trust Fund or the Federal Disability Insurance 
Trust Fund, as determined appropriate by the Commissioner of Social 
Security, and such amounts shall be deposited by the Managing Trustee 
into such Trust Fund. All other such amounts shall be deposited by the 
Commissioner into the general fund of the Treasury as miscellaneous 
receipts.''.
    (d) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply with respect to violations occurring on or after the date 
of the enactment of this Act.

SEC. 106. CONFIDENTIAL TREATMENT OF CREDIT HEADER INFORMATION.

    (a) In General.--Section 603(d) of the Fair Credit Reporting Act 
(15 U.S.C. 1681a(d)) is amended by inserting after the first sentence 
the following: ``The term also includes information regarding the 
social security account number of the consumer or any derivative 
thereof.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect 90 days after the date of the enactment of this Act.

SEC. 107. LAW ENFORCEMENT AUTHORITY FOR THE OFFICE OF THE INSPECTOR 
              GENERAL OF THE SOCIAL SECURITY ADMINISTRATION.

    Section 702(e) of the Social Security Act (42 U.S.C. 902(e)) is 
amended--
            (1) by inserting ``(1) In general.--'' after ``(e)''; and
            (2) by adding at the end the following:
    ``(2) Law enforcement authority.--
            ``(A) Specific designations.--The Inspector General may 
        designate one or more special agents in the Office of the 
        Inspector General to exercise the authorities specified in 
        subparagraph (B).
            ``(B) Authorities.--A special agent in the Office of the 
        Inspector General who is designated under subparagraph (A) 
        may--
                    ``(i) carry firearms,
                    ``(ii) execute and serve any warrant or other 
                process issued under the authority of the United 
                States, and
                    ``(iii) make arrests without warrant for--
                            ``(I) any offense against the United States 
                        committed in the special agent's presence, or
                            ``(II) any offense punishable under Federal 
                        law by imprisonment for more than 1 year, if 
                        the special agent has probable cause to believe 
                        that the person to be arrested has committed or 
                        is committing the offense.
            ``(C) Special agent.--For purposes of this paragraph, the 
        term `special agent' means an employee in the Office of the 
        Inspector General whose duties include conducting, supervising, 
        and coordinating investigations of criminal activity in the 
        programs and operations of the Administration.
            ``(D) Use of state or local law enforcement officers.--
                    ``(i) In general.--Any State or local law 
                enforcement officer designated by the Inspector 
                General, while assisting a special agent designated 
                under subparagraph (A), may exercise the authorities 
                provided under subparagraph (B).
                    ``(ii) Applicability of provisions governing 
                federal employees.--
                            ``(I) In general.--Any such officer shall 
                        not be deemed a Federal employee, and, subject 
                        to subclause (II), shall not be subject to 
                        provisions of law relating to Federal 
                        employees, solely by reason of the exercise by 
                        such officer of any such authority.
                            ``(II) Applicability of certain 
                        provisions.--While exercising such authority, 
                        such officer shall be subject to subsection (c) 
                        of section 3374 of title 5, United States Code, 
                        as if such officer were assigned and appointed 
                        as described in such section, except that 
                        nothing in this clause shall be construed to 
                        authorize Federal pay or other compensation for 
                        such officer.
            ``(E) Guidelines on exercise of authorities.--The 
        authorities provided under subparagraph (B) shall be exercised 
        in accordance with guidelines prescribed by the Inspector 
        General and approved by the Attorney General of the United 
        States.''.

         TITLE II--PROVISIONS RELATING TO REPRESENTATIVE PAYEES

SECTION 201. AUTHORITY TO REISSUE BENEFITS MISUSED BY ORGANIZATIONAL 
              REPRESENTATIVE PAYEES.

    (a) OASDI Amendment.--Section 205(j)(5) of the Social Security Act 
(42 U.S.C. 405(j)(5)) is amended by inserting after the first sentence 
the following new sentence: ``In any case in which a representative 
payee--
            ``(i) that is not an individual (regardless of whether it 
        is a `qualified organization' within the meaning of paragraph 
        (4)(B)); or
            ``(ii) is an individual who, for any month during a period 
        when misuse occurs, serves 10 or more individuals who are 
        beneficiaries under title II, title XVI, title VIII, or any 
        combination of such titles;
misuses all or part of an individual's benefit paid to such 
representative payee, the Commissioner of Social Security shall certify 
for payment to the beneficiary or the beneficiary's alternative 
representative payee an amount equal to the amount of such benefit so 
misused. The provisions of this paragraph are subject to the 
limitations of paragraph (6)(B).''.
    (b) SSI Amendment.--Section 1631(a)(2)(E) of such Act (42 U.S.C. 
1383(a)(2)(E)) is amended by inserting after the first sentence the 
following new sentence: ``In any case in which a representative payee--
            ``(i) that is not an individual (regardless of whether it 
        is a `qualified organization' within the meaning of 
        subparagraph (D)(ii)); or
            ``(ii) is an individual who, for any month during a period 
        when misuse occurs, serves 10 or more individuals who are 
        beneficiaries under title II, title XVI, title VIII, or any 
        combination of such titles;
misuses all or part of an individual's benefit paid to such 
representative payee, the Commissioner of Social Security shall make 
payment to the beneficiary or the beneficiary's alternative 
representative payee of an amount equal to the amount of such benefit 
so misused. The provisions of this subparagraph are subject to the 
limitations of subparagraph (F)(ii).''.
    (c) Effective Date.--The preceding amendments made by this section 
shall apply to any case of benefit misuse by a representative payee 
with respect to which the Commissioner makes the determination of 
misuse after the date of the enactment of the Omnibus Budget 
Reconciliation Act of 1990 (Public Law 101-501).
    (d) Technical Amendment.--Section 205(j) of the Social Security Act 
(42 U.S.C. 405(j)) is amended by striking paragraph (6).

SEC. 202. OVERSIGHT OF NONGOVERNMENTAL ORGANIZATIONAL REPRESENTATIVE 
              PAYEES.

    (a) Certification of Bonding and Licensing Requirements.--
            (1) OASDI amendment.--Section 205(j) of the Social Security 
        Act (42 U.S.C. 405(j)) is amended--
                    (A) in paragraph (2)(C)(v)--
                            (i) by striking ``a community-based 
                        nonprofit social service agency licensed or 
                        bonded by the State'' in subclause (I) and 
                        inserting ``a certified community-based 
                        nonprofit social service agency; and
                            (ii) by adding at the end the following: 
                        ``For purposes of subclause (I), the term 
                        `certified community-based nonprofit social 
                        service agency' means a community based 
                        nonprofit social service agency which is in 
                        compliance with requirements, under regulations 
                        which shall be prescribed by the Commissioner, 
for annual certification to the Commissioner that it is bonded in 
accordance with requirements specified by the Commissioner and that it 
is licensed in each State in which it serves as a representative payee 
(if licensing is available in such State in accordance with 
requirements specified by the Commissioner). Any such annual 
certification shall include a copy of any independent audit on such 
agency which may have been performed since the previous 
certification.''; and
                    (B) in paragraph (4)(B), by striking ``any 
                community-based nonprofit social service agency which 
                is bonded or licensed in each State in which it serves 
                as a representative payee'' and inserting ``any 
                certified community-based nonprofit social service 
                agency (as defined in paragraph (2)(C)(v))''.
            (2) SSI amendment.--Section 1631(a)(2) of such Act (42 
        U.S.C. 1383(a)(2)) is amended--
                    (A) in subparagraph (B)(vii)--
                            (i) by striking ``a community-based 
                        nonprofit social service agency licensed or 
                        bonded by the State'' in subclause (I) and 
                        inserting ``a certified community-based 
                        nonprofit social service agency''; and
                            (ii) by adding at the end the following: 
                        ``For purposes of subclause (I), the term 
                        `certified community-based nonprofit social 
                        service agency' means a community based 
                        nonprofit social service agency which is in 
                        compliance with requirements, under regulations 
                        which shall be prescribed by the Commissioner, 
                        for annual certification to the Commissioner 
                        that it is bonded in accordance with 
                        requirements specified by the Commissioner and 
                        that it is licensed in each State in which it 
                        serves as a representative payee (if licensing 
                        is available in such State in accordance with 
                        requirements specified by the Commissioner). 
                        Any such annual certification shall include a 
                        copy of any independent audit on such agency 
                        which may have been performed since the 
                        previous certification.''; and
                    (B) in subparagraph (D)(ii)--
                            (i) by striking ``or any community-based'' 
                        and all that follows down through ``in 
                        accordance'' in subclause (II) and inserting 
                        ``or any certified community-based nonprofit 
                        social service agency (as defined in 
                        subparagraph (B)(vii)), if such agency, in 
                        accordance'';
                            (ii) by redesignating items (aa) and (bb) 
                        as subclauses (I) and (II), respectively (and 
                        adjusting the margination accordingly); and
                            (iii) by striking ``subclause (II)(bb)'' 
                        and inserting ``subclause (II)''.
            (3) Effective date.--The amendments made by this subsection 
        shall take effect on the first day of the thirteenth month 
        beginning after the date of the enactment of this Act.
    (b) Periodic Onsite Review.--
            (1) OASDI amendment.--Section 205(j)(4) of such Act (42 
        U.S.C. 405(j)(4)) is amended by adding at the end the following 
        new subparagraph:
    ``(D) The Commissioner of Social Security shall provide by 
regulation for the periodic onsite inspection of community-based 
nonprofit social service agencies serving as representative payees 
under this subsection.''.
            (2) SSI amendment.--Section 1631(a)(2)(D) of such Act (42 
        U.S.C. 1383(a)(2)(D)) is amended by adding at the end the 
        following new clause:
    ``(v) The Commissioner of Social Security shall provide by 
regulation for the periodic onsite inspection of community-based 
nonprofit social service agencies serving as representative payees 
under this paragraph.''.

SEC. 203. DISQUALIFICATION FROM SERVICE AS REPRESENTATIVE PAYEE UPON 
              CONVICTION OF OFFENSES PUNISHABLE BY IMPRISONMENT FOR 
              MORE THAN 1 YEAR.

    (a) OASDI Amendment.--Section 205(j)(2) of the Social Security Act 
(42 U.S.C. 405(j)(2)) is amended--
            (1) in subparagraph (B)(i)--
                    (A) by striking ``and'' at the end of subclause 
                (III);
                    (B) by redesignating subclause (IV) as subclause 
                (V); and
                    (C) by inserting after subclause (III) the 
                following new subclause:
            ``(IV) determine whether such person has been convicted of 
        any other offense punishable under Federal or State law by 
        imprisonment for more than 1 year (regardless of the actual 
        sentence imposed), and''; and
            (2) in subparagraph (C)(i), by adding after and below 
        subclause (III) the following new sentence:
``Benefits of an individual may not be certified for payment to any 
other person pursuant to this subsection if such person has previously 
been convicted as described in subparagraph (B)(i)(IV), unless the 
Commissioner determines that such certification would be appropriate 
notwithstanding such conviction.''.
    (b) SSI Amendment.--Section 1631(a)(2)(B) of such Act (42 U.S.C. 
1383(a)(2)(B)) is amended--
            (1) in clause (ii)--
                    (A) by striking ``and'' at the end of subclause 
                (III);
                    (B) by redesignating subclause (IV) as subclause 
                (V); and
                    (C) by inserting after subclause (III) the 
                following new subclause:
            ``(IV) determine whether such person has been convicted of 
        any other offense punishable under Federal or State law by 
        imprisonment for more than 1 year (regardless of the actual 
        sentence imposed), and''; and
            (2) in clause (iii), by adding after and below subclause 
        (III) the following new sentence:
``Benefits of an individual may not be paid to any other person 
pursuant to subparagraph (A)(ii) if such person has previously been 
convicted as described in clause (ii)(IV), unless the Commissioner 
determines that such certification would be appropriate notwithstanding 
such conviction.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the first day of the thirteenth month beginning after the 
date of the enactment of this Act.

SEC. 204. FEE FORFEITURE IN CASE OF BENEFIT MISUSE BY REPRESENTATIVE 
              PAYEES.

    (a) OASDI Amendment.--Section 205(j)(4)(A)(i) of the Social 
Security Act (42 U.S.C. 405(j)(4)(A)(i)) is amended--
            (1) in the first sentence, by striking ``A'' and inserting 
        ``Except as provided in the next sentence, a''; and
            (2) by inserting before the second sentence the following 
        new sentence: ``A qualified organization may not collect a fee 
        from an individual for any month with respect to which the 
        Commissioner of Social Security or a court of competent 
        jurisdiction has determined that the organization misused all 
        or part of the individual's benefit, and any amount so 
        collected by the qualified organization for such month shall be 
        treated as a misused part of the individual's benefit for 
        purposes of paragraphs (5) and (6).''.
    (b) SSI Amendment.--Section 1631(a)(2)(D)(i) of such Act (42 U.S.C. 
1383(a)(2)(D)(i)) is amended--
            (1) in the first sentence, by striking ``A'' and inserting 
        ``Except as provided in the next sentence, a''; and
            (2) by inserting before the second sentence the following 
        new sentence: ``A qualified organization may not collect a fee 
        from an individual for any month with respect to which the 
        Commissioner of Social Security or a court of competent 
        jurisdiction has determined that the organization misused all 
        or part of the individual's benefit, and any amount so 
        collected by the qualified organization for such month shall be 
        treated as a misused part of the individual's benefit for 
        purposes of subparagraphs (E) and (F).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to any month involving benefit misuse by a representative payee 
in any case with respect to which the Commissioner makes the 
determination of misuse after December 31, 1999.

SEC. 205. LIABILITY OF REPRESENTATIVE PAYEES FOR MISUSED BENEFITS.

    (a) OASDI Amendment.--Section 205(j) of the Social Security Act (42 
U.S.C. 405(j)) is amended by redesignating paragraphs (6) and (7) as 
paragraphs (7) and (8), respectively, and inserting after paragraph (5) 
the following new paragraph:
    ``(6)(A) If the Commissioner of Social Security or a court of 
competent jurisdiction determines that a representative payee that is 
not a State or local government agency has misused all or part of an 
individual's benefit that was paid to such representative payee under 
this subsection, the representative payee shall be liable for the 
amount misused, and such amount (to the extent not repaid by the 
representative payee) shall be treated as an overpayment of benefits 
under this title to the representative payee for all purposes of this 
Act and related laws pertaining to the recovery of such overpayments. 
Subject to subparagraph (B), upon recovering all or any part of such 
amount, the Commissioner shall certify an amount equal to the recovered 
amount for payment to such individual or the individual's alternative 
representative payee.
    ``(B) The total of the amount certified for payment to such 
individual or the individual's alternative representative payee under 
subparagraph (A) and the amount certified for payment under paragraph 
(5) may not exceed the total benefit amount misused by the 
representative payee with respect to such individual.''.
    (b) SSI Amendment.--Section 1631(a)(2) of such Act (42 U.S.C. 
1383(a)(2)) is amended by redesignating subparagraphs (F), (G), and (H) 
as subparagraphs (G), (H), and (I), respectively, and inserting after 
subparagraph (E) the following new subparagraph:
    ``(F)(i) If the Commissioner of Social Security or a court of 
competent jurisdiction determines that a representative payee that is 
not a State or local government agency has misused all or part of an 
individual's benefit that was paid to such representative payee under 
this paragraph, the representative payee shall be liable for the amount 
misused, and such amount (to the extent not repaid by the 
representative payee) shall be treated as an overpayment of benefits 
under this title to the representative payee for all purposes of this 
Act and related laws pertaining to the recovery of such overpayments. 
Subject to clause (ii), upon recovering all or any part of such amount, 
the Commissioner shall make payment of an amount equal to the recovered 
amount to such individual or the individual's alternative 
representative payee.
    ``(ii) The total of the amount paid to such individual or the 
individual's alternative representative payee under clause (i) and the 
amount paid under subparagraph (E) may not exceed the total benefit 
amount misused by the representative payee with respect to such 
individual.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to benefit misuse by a representative payee in any case with 
respect to which the Commissioner makes the determination of misuse 
after December 31, 1999.

SEC. 206. EXTENSION OF CIVIL MONETARY PENALTY AUTHORITY WITH RESPECT TO 
              REPRESENTATIVE PAYEES.

    (a) In General.--Section 1129(a) of the Social Security Act (42 
U.S.C. 1320a-8(a)) (as amended by section 106) is amended further--
            (1) by redesignating paragraph (4) as paragraph (5); and
            (2) by inserting after paragraph (3) the following new 
        paragraph:
    ``(4) Any person (including an organization, agency, or other 
entity) who, having received, while acting in the capacity of a 
representative payee pursuant to section 205(j) or section 1631(a)(2), 
a payment under title II or title XVI for the use and benefit of 
another individual, converts such payment, or any part thereof, to a 
use that such person knows or should know is other than for the use and 
benefit of such other individual 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 conversion. Such person shall 
also be subject to an assessment, in lieu of damages sustained by the 
United States resulting from such conversion, of not more than twice 
the amount of any payments so converted.''.
    (b) Effective Date.--The amendments made by this section shall 
apply with respect to violations committed after the date of the 
enactment of this Act.
                                 <all>