[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2036 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 2036

  To amend the Social Security Act to enhance privacy protections for 
   individuals, to prevent fraudulent misuse of the Social Security 
                account number, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 25, 2001

 Mr. Shaw (for himself, Mr. Matsui, Mr. Foley, Mr. Kleczka, Mr. Camp, 
  Ms. Dunn of Washington, Mr. Hayworth, Mr. Sam Johnson of Texas, Mr. 
     Lewis of Kentucky, Mr. Ramstad, Mr. Tanner, and Mrs. Thurman) 
 introduced the following bill; which was referred to the Committee on 
    Ways and Means, and in addition to the Committees on Energy and 
   Commerce and Financial Services, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
  To amend the Social Security Act to enhance privacy protections for 
   individuals, to prevent fraudulent misuse of the Social Security 
                account number, 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 ``Social Security 
Number Privacy and Identity Theft Prevention Act of 2001''.
    (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 IN 
                           THE PUBLIC SECTOR

Sec. 101. Restrictions on the sale of social security account numbers 
                            by governmental agencies.
Sec. 102. Prohibition of the display to the general public of social 
                            security account numbers possessed by 
                            governmental agencies.
Sec. 103. Prohibition of the display of social security account numbers 
                            on checks issued for payment by 
                            governmental agencies.
Sec. 104. Prohibition of the appearance of social security account 
                            numbers on driver's licenses or motor 
                            vehicle registrations.
Sec. 105. Prohibition of the display by governmental agencies of 
                            personal identification numbers.
Sec. 106. Prohibition of inmate access to social security account 
                            numbers.
Sec. 107. Independent verification of birth records provided in support 
                            of applications for social security account 
                            numbers.
TITLE II--PROVISIONS RELATING TO THE SOCIAL SECURITY ACCOUNT NUMBER IN 
                           THE PRIVATE SECTOR

Sec. 201. Prohibition of the sale, purchase, or display of the social 
                            security account number in the private 
                            sector.
Sec. 202. Refusal to do business without receipt of social security 
                            account number considered unfair or 
                            deceptive act or practice.
Sec. 203. Confidential treatment of credit header information.
                         TITLE III--ENFORCEMENT

Sec. 301. New criminal penalties for misuse of social security account 
                            numbers.
Sec. 302. Extension of civil monetary penalty authority.
Sec. 303. Authority for judicial orders of restitution.

SEC. 2. FINDINGS.

    The Congress makes the following findings:
            (1) A unique series of nine numbers assigned to most 
        individuals, the Social Security account number was created in 
        1936 for the sole purpose of tracking workers' earnings so that 
        Social Security benefits could be calculated upon retirement or 
        disability.
            (2) As a result of its uniqueness, expanded use of the 
        Social Security account number has occurred in the public and 
        private sectors.
            (3) Expanded Federal use of the Social Security account 
        number was first mandated by President Roosevelt in 1943 with 
        Executive Order 9397, requiring that any Federal department 
        establishing a new system of permanent account numbers 
        pertaining to an individual must utilize the Social Security 
        account number exclusively, and that such personal information 
        must be kept confidential.
            (4) Today, 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.
            (5) In the private sector, use of the Social Security 
        account number as a personal identifier has grown 
        substantially. Many businesses require a Social Security 
        account number prior to providing services or goods.
            (6) However, under some current business practices, an 
        individual may lose control over the further sale or transfer 
        of the Social Security account number by the entity provided 
        the number. An individual's Social Security account number may 
        be sold or transferred without the individual's knowledge or 
        permission.
            (7) Today, the Social Security account number is generally 
        regarded as the single-most widely used record identifier by 
        both government and private sectors within the United States.
            (8) However, 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.
            (9) 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.
            (10) 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.
            (11) The prevalence of the use of the Social Security 
        account number and the ease by which individuals can obtain 
        another person's Social Security account number have raised 
        serious concerns over privacy and opportunities for fraud.
            (12) Social Security cards may be counterfeited for illegal 
        aliens and individuals use false Social Security account number 
        information to improperly apply for and receive benefits under 
        Federal and State programs.
            (13) Misuse of the Social Security account number is a 
        central component of identity theft, considered the fastest 
        growing financial crime in the country. It is estimated that 
        identity theft affects upwards of 700,000 individuals per year.
            (14) The results of identity theft are staggering. Victims 
        spend years and many dollars clearing up their good name and 
        contesting charges they never authorized. It is estimated that 
        in 1997, monetary losses associated with identity theft was 
        approximately $745,000,000.
            (15) Growing concern over fraud and privacy and the absence 
        of a comprehensive Federal law regulating the use of Social 
        Security account numbers prompt the need for the Congress to 
        act.

 TITLE I--PROVISIONS RELATING TO THE SOCIAL SECURITY ACCOUNT NUMBER IN 
                           THE PUBLIC SECTOR

SEC. 101. RESTRICTIONS ON THE SALE OF SOCIAL SECURITY ACCOUNT NUMBERS 
              BY GOVERNMENTAL AGENCIES.

    (a) 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 executive, legislative, or judicial agency or 
instrumentality of the Federal Government or of a State or a political 
subdivision thereof or trustee appointed in a case under title 11, 
United States Code (or person acting as an agent of such an agency or 
instrumentality or trustee) 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. Notwithstanding 
the preceding sentence, such number (or derivative) may be made 
available or disclosed in such an exchange in accordance with the 
following exceptions (and for no other purpose):
            ``(I) Such number (or derivative) may be disclosed in such 
        an exchange by a State department of motor vehicles as 
        authorized under subsection (b) of section 2721 of title 18, 
        United States Code, if such disclosed number (or derivative) is 
        to be used solely for the purposes permitted under paragraph 
        (1), (6) or (9) of such subsection.
            ``(II) Such number (or derivative) may be made available in 
        such an exchange to a consumer reporting agency, as defined in 
        section 603(f) of the Fair Credit Reporting Act (15 U.S.C. 
        1681a(f)), exclusively for use in accordance with such Act.
            ``(III) Such number (or derivative) may be disclosed in 
        such an exchange to the extent that is necessary or appropriate 
        for law enforcement or national security purposes, as 
        determined under regulations which shall be issued by the 
        Attorney General of the United States.
            ``(IV) Such an exchange may occur to the extent it is 
        otherwise specifically authorized by this Act.''.
    (b) Effective Date.--The amendment made by this section shall apply 
with respect to violations occurring after 3 years after the date of 
the enactment of this Act.

SEC. 102. PROHIBITION OF THE DISPLAY TO THE GENERAL PUBLIC OF SOCIAL 
              SECURITY ACCOUNT NUMBERS POSSESSED BY GOVERNMENTAL 
              AGENCIES.

    (a) In General.--Section 205(c)(2)(C) of the Social Security Act 
(42 U.S.C. 405(c)(2)(C)) (as amended by section 101) is amended further 
by adding at the end the following new clause:
    ``(xi)(I) No executive, legislative, or judicial agency or 
instrumentality of the Federal Government or of a State or a political 
subdivision thereof or trustee appointed in a case under title 11, 
United States Code (or person acting as an agent of such an agency or 
instrumentality or trustee), may display to the general public any 
individual's social security account number, or any derivative of such 
number. Notwithstanding the preceding sentence, such number (or 
derivative) may be so displayed in accordance with the exceptions 
specified in subclauses (II) and (III) (and for no other purpose).
    ``(II) Such number (or derivative) may be so displayed to a 
consumer reporting agency, as defined in section 603(f) of the Fair 
Credit Reporting Act (15 U.S.C. 1681a(f)), exclusively for use in 
accordance with such Act.
    ``(III) Such number (or derivative) may be so displayed to the 
extent that is necessary or appropriate for law enforcement or national 
security purposes, as determined under regulations which shall be 
issued by the Attorney General of the United States.
    ``(IV) For purposes of this clause, 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 any other manner intended to provide access 
to such number or derivative by the general public. Each such agency or 
instrumentality or trustee shall ensure that access to such numbers, 
and any derivative of such numbers, is restricted to persons who may 
obtain them in accordance with this clause and other applicable law.''.
    (b) Effective Date.--Agencies and instrumentalities and trustees 
(and agents thereof) shall comply with the requirements of clause (xi) 
of section 205(c)(2)(C) of the Social Security Act (added by this 
section) as soon as practicable after the date of the enactment of this 
Act. Such clause (xi) shall apply with respect to all displays 
originally occurring after 3 years after the date of the enactment of 
this Act.

SEC. 103. PROHIBITION OF THE DISPLAY OF SOCIAL SECURITY ACCOUNT NUMBERS 
              ON CHECKS ISSUED FOR PAYMENT BY GOVERNMENTAL AGENCIES.

    (a) 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 title) is amended further by adding at the end the following new 
clause:
    ``(xii) No executive, legislative, or judicial agency or 
instrumentality of the Federal Government or of a State or a political 
subdivision thereof or trustee appointed in a case under title 11, 
United States Code (or person acting as an agent of such an agency or 
instrumentality or trustee) may include the social security account 
number of any individual on any check issued for any payment by the 
Federal Government, any State or political subdivision thereof, or any 
agency or instrumentality thereof, or such trustee or on any document 
attached to or accompanying such a check.''.
    (b) Effective Date.--The amendment made by this section shall apply 
with respect to violations occurring after 3 years after the date of 
the enactment of this Act.

SEC. 104. PROHIBITION OF THE APPEARANCE OF SOCIAL SECURITY ACCOUNT 
              NUMBERS ON DRIVER'S LICENSES OR MOTOR VEHICLE 
              REGISTRATIONS.

    (a) In General.--Section 205(c)(2)(C)(vi) of the Social Security 
Act (42 U.S.C. 405(c)(2)(C)(vi)) is amended--
            (1) by inserting ``(I)'' after ``(vi)''; and
            (2) by adding at the end the following new subclause:
    ``(II) A State or political subdivision thereof (and any person 
acting as an agent of such an agency or instrumentality), 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.''.
    (b) Effective Date.--The amendments made by this section shall 
apply with respect to licenses, registrations, and other documents 
issued or reissued after 3 years after the date of the enactment of 
this Act.

SEC. 105. PROHIBITION OF THE DISPLAY BY GOVERNMENTAL AGENCIES OF 
              PERSONAL IDENTIFICATION NUMBERS.

    (a) 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 title) is amended further by adding at the end the following new 
clause:
    ``(xiii) No executive, legislative, or judicial agency or 
instrumentality of the Federal Government or of a State or political 
subdivision thereof (or person acting as an agent of such an agency or 
instrumentality) may display the social security account number, or any 
derivative of such number, on any card or tag that is commonly provided 
to employees for purposes of identification and that is to be 
maintained for continual, open display by the employees.''.
    (b) Effective Date.--The amendment made by this section shall apply 
with respect to violations occurring after 3 years after the date of 
the enactment of this Act.

SEC. 106. PROHIBITION OF INMATE ACCESS TO SOCIAL SECURITY ACCOUNT 
              NUMBERS.

    (a) 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 title) is amended further by adding at the end the following new 
clause:
    ``(xiv) No executive, legislative, or judicial agency or 
instrumentality of the Federal Government or of a State or political 
subdivision thereof (or person acting as an agent of such an agency or 
instrumentality) 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.''.
    (b) Effective Date.--The amendment made by this section shall apply 
with respect to employment of prisoners, or entry into contract with 
prisoners, after 1 year after the date of the enactment of this Act.

SEC. 107. INDEPENDENT VERIFICATION OF BIRTH RECORDS PROVIDED IN SUPPORT 
              OF APPLICATIONS FOR SOCIAL SECURITY ACCOUNT NUMBERS.

    (a) In General.--Section 205(c)(2)(B)(ii) of the Social Security 
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.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to applications filed after 1 year after the date of 
the enactment of this Act.
    (c) Report on Enumeration of Aliens at Admission.--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, at the admission of aliens to the United 
States, for enumeration of those aliens who have need of a social 
security account number. 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.

TITLE II--PROVISIONS RELATING TO THE SOCIAL SECURITY ACCOUNT NUMBER IN 
                           THE PRIVATE SECTOR

SEC. 201. PROHIBITION OF THE SALE, PURCHASE, OR DISPLAY OF THE SOCIAL 
              SECURITY ACCOUNT NUMBER IN THE PRIVATE SECTOR.

    (a) In General.--Title II of the Social Security Act is amended by 
inserting after section 208 (42 U.S.C. 408) the following new section:

``prohibition of the sale, purchase, or display of the social security 
                             account number

    ``Sec. 208A. (a) Definitions.--In this section:
            ``(1) Person.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                term `person' means any individual, partnership, 
                corporation, trust, estate, cooperative, association, 
                or any other entity.
                    ``(B) Governmental entities.--Such term does not 
                include a governmental entity. Nothing in this 
                subparagraph shall be construed to authorize, in 
                connection with a governmental entity, an act or 
                practice otherwise prohibited under this section or 
section 205(c)(2)(C).
            ``(2) 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).
            ``(3) 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).
            ``(4) Display.--The term `display' means, in connection 
        with a social security account number, the intentional placing 
        of such number, or a derivative thereof, in a viewable manner 
        on an Internet site that is available to the general public or 
        in any other manner intended to provide access to such number 
        or derivative by the general public.
            ``(5) Social security account number.--The term `social 
        security account number' has the meaning given such term in 
        section 208(c).
    ``(b) Prohibition.--Except as provided in subsection (c), it shall 
be unlawful for any person to--
            ``(1) sell, purchase, or display a social security account 
        number, or
            ``(2) obtain or use any individual's social security 
        account number for the purpose of locating or identifying such 
        individual with the intent to physically injure or harm such 
        individual or using the identity of such individual for any 
        illegal purpose.
    ``(c) Exceptions.--Subsection (b)(1) shall not apply with respect 
to any sale, purchase, or display of social security account numbers 
solely to the extent provided in this subsection (and for no other 
purpose) as follows:
            ``(1) to the extent necessary for law enforcement, 
        including (but not limited to) the enforcement of a child 
        support obligation;
            ``(2) to the extent necessary for national security 
        purposes;
            ``(3) to the extent necessary for public health purposes;
            ``(4) to the extent necessary in emergency situations to 
        protect the health or safety of 1 or more individuals;
            ``(5) to the extent necessary for research conducted for 
        the purpose of advancing public knowledge, on the condition 
        that the researcher provides adequate assurances that--
                    ``(A) the social security account numbers will not 
                be used to harass, target, or publicly reveal 
                information concerning any identifiable individuals;
                    ``(B) information about identifiable individuals 
                obtained from the research will not be used to make 
                decisions that directly affect the rights, benefits, or 
                privileges of specific individuals; and
                    ``(C) the researcher has in place appropriate 
                safeguards to protect the privacy and confidentiality 
                of any information about identifiable individuals;
            ``(6) to the extent consistent with an individual's 
        voluntary and affirmative written consent to the sale, 
        purchase, or display of a social security account number that 
        has been assigned to that individual; and
            ``(7) under such other appropriate circumstances as the 
        Attorney General of the United States may determine 
        appropriate, in consultation with the Commissioner of Social 
        Security, the Federal Trade Commission, State attorneys 
        general, and such other governmental agencies or 
        instrumentalities as the Attorney General of the United States 
        considers appropriate.
    ``(d) Criminal Penalty.--Any person who violates this section shall 
be guilty of a felony and upon conviction thereof shall be fined under 
title 18, United States Code, or imprisoned for not more than 5 years, 
or both.''.
    (b) Effective Date.--The amendment made by this section shall apply 
with respect to violations occurring after 30 days after the date of 
the issuance by the Attorney General of the United States of final 
regulations under section (c).
    (c) Rulemaking by the Attorney General.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Attorney General of the United 
        States shall promulgate regulations in accordance with section 
        553 of title 5, United States Code, under section 208A of the 
        Social Security Act (added by this section).
            (2) Factors for consideration.--
                    (A) In general.--In promulgating the regulations 
                described in paragraph (1), the Attorney General shall 
                impose restrictions and conditions on the sale, 
                purchase, and display of social security account 
                numbers, and on any unfair or deceptive acts or 
                practices in connection with the sale, purchase, or 
                display of social security account numbers, to the 
                extent necessary--
                            (i) to provide reasonable assurances that 
                        social security account numbers will not be 
                        used to commit or facilitate fraud, deception, 
                        or crime, or
                            (ii) to prevent an undue risk of bodily, 
                        emotional, or financial harm to an individual,
                except that any such restriction or condition shall be 
                no broader than necessary to accomplish such purpose 
                described in clause (i) or (ii).
                    (B) Required considerations for prevention of undue 
                risk.--For purposes of subparagraph (A)(ii), the 
                Attorney General shall consider--
                            (i) the nature, likelihood, and severity of 
                        the anticipated harm;
                            (ii) the nature, likelihood, and extent of 
                        any benefits that could be realized from the 
                        sale, purchase, or display of social security 
                        account numbers; and
                            (iii) any other relevant factors.

SEC. 202. REFUSAL TO DO BUSINESS WITHOUT RECEIPT OF SOCIAL SECURITY 
              ACCOUNT NUMBER CONSIDERED UNFAIR OR DECEPTIVE ACT OR 
              PRACTICE.

    (a) In General.--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.
    (b) Exception.--Subsection (a) shall not apply to any person in any 
case in which such person is required under Federal law, in connection 
with doing business with an individual, to submit to the Federal 
Government such individual's Social Security account number.

SEC. 203. CONFIDENTIAL TREATMENT OF CREDIT HEADER INFORMATION.

    (a) In General.--Section 603 of the Fair Credit Reporting Act (15 
U.S.C. 1681a) is amended by adding at the end the following new 
subsection:
    ``(q) Confidential Treatment of Credit Header Information.--
Information regarding the social security account number of the 
consumer, or any derivative thereof, may not be furnished to any person 
by a consumer reporting agency other than in a full consumer report 
furnished in accordance with section 604 and other requirements of this 
title.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect 90 days after the date of the enactment of this Act.

                         TITLE III--ENFORCEMENT

SEC. 301. NEW CRIMINAL PENALTIES FOR MISUSE OF SOCIAL SECURITY ACCOUNT 
              NUMBERS.

    (a) In General.--Section 208(a) of the Social Security Act (42 
U.S.C. 408(a)) is amended--
            (1) in paragraph (8), by adding ``or'' at the end; and
            (2) 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 executive, 
        legislative, or judicial agency or instrumentality of the 
        Federal Government or of a State or political subdivision 
        thereof (or a person acting as an agent of such an agency or 
        instrumentality) in possession of any individual's social 
        security account number (or an officer or employee thereof or a 
        person acting as an agent thereof), willfully acts or fails to 
        act so as to cause a violation of clause (vi)(II), (x), (xi), 
        (xii), or (xiv) of section 205(c)(2)(C); or
            ``(11) being a trustee appointed in a case under title 11, 
        United States Code (or an officer or employee thereof or a 
        person acting as an agent thereof), willfully acts or fails to 
        act so as to cause a violation of clause (x), (xi), or (xii) of 
        section 205(c)(2)(C);''.
    (b) Effective Dates.--Section 208(a)(9) of the Social Security Act 
(added by subsection (a)(2)) shall apply with respect to each violation 
occurring after the date of the enactment of this Act. Paragraphs (10) 
and (11) of section 208(a) of such Act (added by subsection (a)(2)) 
shall apply with respect to each violation occurring on or after the 
effective date applicable with respect to such violation under title I.

SEC. 302. EXTENSION OF CIVIL MONETARY PENALTY AUTHORITY.

    (a) 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)) is amended--
            (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;
            ``(I) being an officer or employee of any executive, 
        legislative, or judicial agency or instrumentality of the 
        Federal Government or of a State or political subdivision 
        thereof (or a person acting as an agent of such an agency or 
        instrumentality) (or an officer or employee thereof or a person 
        acting as an agent thereof), in possession of any individual's 
        social security account number, willfully acts or fails to act 
        so as to cause a violation of clause (vi)(II), (x), (xi), 
        (xii), or (xiv) of section 205(c)(2)(C);
            ``(J) being a trustee appointed in a case under title 11, 
        United States Code (or an officer or employee thereof or a 
        person acting as an agent thereof), willfully acts or fails to 
        act so as to cause a violation of clause (x), (xi), or (xiii) 
        of section 205(c)(2)(C); or
            ``(K) violates section 208A (relating to prohibition of the 
        sale, purchase, or display of the social security account 
        number in the private sector);
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.''.
    (b) 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 subparagraphs (I) and (J) of section 
1129(a)(3) of the Social Security Act (added by subsection (a)) shall 
apply with respect to violations occurring on or after the effective 
date provided in connection with such violations under title I.

SEC. 303. AUTHORITY FOR JUDICIAL ORDERS OF RESTITUTION.

    (a) Amendments to Title II.--Title II of the Social Security Act is 
amended--
            (1) in section 208 (42 U.S.C. 408) (as amended by section 
        301 of this Act)--
                    (A) by redesignating subsections (b), (c), and (d) 
                as subsections (c), (d), and (e), respectively; and
                    (B) 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 subsection, the court shall state on 
the record the reasons therefor.''; and
            (2) in section 208A (added by section 201 of this Act)--
                    (A) by striking ``section 208(c)'' in subsection 
                (a)(5) and inserting ``section 208(d)''; and
                    (B) by adding at the end the following new 
                subsection:
    ``(e) Court Order for Restitution.--
            ``(1) In general.--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) Related provisions.--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) Stated reasons for not ordering restitution.--If the 
        court does not order restitution, or orders only partial 
        restitution, under this subsection, the court shall state on 
        the record the reasons therefor.''.
    (b) Amendments to Title VIII.--Section 807(i) of such Act (42 
U.S.C. 1007(i)) is amended--
            (1) by striking ``(i) Restitution.--In any case where'' and 
        inserting the following:
    ``(i) Restitution.--
            ``(1) In general.--In any case where''; and
            (2) by adding at the end the following new paragraph:
            ``(2) Court order for restitution.--
                    ``(A) In general.--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.
                    ``(B) Related provisions.--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 paragraph. In so applying such 
                sections, the Social Security Administration shall be 
                considered the victim.
                    ``(C) Stated reasons for not ordering 
                restitution.--If the court does not order restitution, 
                or orders only partial restitution, under this 
                paragraph, the court shall state on the record the 
                reasons therefor.''.
    (c) 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, the Social Security Administration shall be considered the 
victim.
    ``(3) If the court does not order restitution, or orders only 
partial restitution, under this subsection, the court shall state on 
the record the reasons therefor.''.
    (d) 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), 208A(e), 807(i), 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 
titles II, VIII, and 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), 807, and 1631(a)(2)) of funds paid as 
benefits under title II, VIII, 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.''.
    (e) 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.
                                 <all>