[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1014 Introduced in Senate (IS)]
107th CONGRESS
1st Session
S. 1014
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 SENATE OF THE UNITED STATES
June 12, 2001
Mr. Bunning (for himself and Mr. Harkin) 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 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
respect to 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' in connection with a
social security account number means 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.
``(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, 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.
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