[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2633 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 2633

  To establish methods for preventing identity theft and to amend the 
  Fair Credit Reporting Act to protect consumers' sensitive, private 
          health-related information, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 26, 2003

 Mr. Emanuel (for himself, Mr. Ose, Mr. Frost, Mr. Sanders, Ms. Hooley 
    of Oregon, Mr. Oberstar, Ms. DeLauro, Mr. Boucher, Mr. Davis of 
Alabama, Ms. Carson of Indiana, Mr. Davis of Illinois, Mr. Lantos, Mr. 
  Cardoza, Mr. Tierney, Mr. Case, Mr. Grijalva, Mrs. McCarthy of New 
 York, Ms. Linda T. Sanchez of California, and Mr. Serrano) introduced 
  the following bill; which was referred to the Committee on Ways and 
 Means, and in addition to the Committees on Energy and Commerce, the 
  Judiciary, 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 establish methods for preventing identity theft and to amend the 
  Fair Credit Reporting Act to protect consumers' sensitive, private 
          health-related information, 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.

    This Act may be cited as the ``Identity Theft Protection and 
Information Blackout Act of 2003''.

SEC. 2. 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 2 years after the date of 
the enactment of this Act.

SEC. 3. 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 2) 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. 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 2 years after the date of the enactment of 
this Act.

SEC. 4. 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 Act) 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 2 years after the date of 
the enactment of this Act.

SEC. 5. 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 1 year after the date of the enactment of this 
Act.

SEC. 6. PROHIBITION OF THE SALE, PURCHASE, OR DISPLAY OF THE SOCIAL 
              SECURITY ACCOUNT NUMBER IN THE PRIVATE SECTOR.

    (a) Prohibition.--
            (1) In general.--Chapter 47 of title 18, United States 
        Code, is amended by inserting after section 1028 the following:
``Sec. 1028A. Prohibition of the display, sale, or purchase of social 
              security numbers
    ``(a) Definitions.--In this section:
            ``(1) Display.--The term `display' means to intentionally 
        communicate or otherwise make available (on the Internet or in 
        any other manner) to the general public an individual's social 
        security number.
            ``(2) Person.--The term `person' means any individual, 
        partnership, corporation, trust, estate, cooperative, 
        association, or any other entity.
            ``(3) Purchase.--The term `purchase' means providing 
        directly or indirectly, anything of value in exchange for a 
        social security number.
            ``(4) Sale.--The term `sale' means obtaining, directly or 
        indirectly, anything of value in exchange for a social security 
        number.
            ``(5) State.--The term `State' means any State of the 
        United States, the District of Columbia, Puerto Rico, the 
        Northern Mariana Islands, the United States Virgin Islands, 
        Guam, American Samoa, and any territory or possession of the 
        United States.
    ``(b) Limitation on Display.--Except as provided in section 1028B, 
no person may display any individual's social security number to the 
general public without the affirmatively expressed consent of the 
individual.
    ``(c) Limitation on Sale or Purchase.--Except as otherwise provided 
in this section, no person may sell or purchase any individual's social 
security number without the affirmatively expressed consent of the 
individual.
    ``(d) Prerequisites for Consent.--In order for consent to exist 
under subsection (b) or (c), the person displaying or seeking to 
display, selling or attempting to sell, or purchasing or attempting to 
purchase, an individual's social security number shall--
            ``(1) inform the individual of the general purpose for 
        which the number will be used, the types of persons to whom the 
        number may be available, and the scope of transactions 
        permitted by the consent; and
            ``(2) obtain the affirmatively expressed consent 
        (electronically or in writing) of the individual.
    ``(e) Exceptions.--Nothing in this section shall be construed to 
prohibit or limit the display, sale, or purchase of a social security 
number--
            ``(1) required, authorized, or excepted under any Federal 
        law;
            ``(2) for a public health purpose, including the protection 
        of the health or safety of an individual in an emergency 
        situation;
            ``(3) for a national security purpose;
            ``(4) for a law enforcement purpose, including the 
        investigation of fraud and the enforcement of a child support 
        obligation;
            ``(5) if the display, sale, or purchase of the number is 
        for a use occurring as a result of an interaction between 
        businesses, governments, or business and government (regardless 
of which entity initiates the interaction), including, but not limited 
to--
                    ``(A) the prevention of fraud (including fraud in 
                protecting an employee's right to employment benefits);
                    ``(B) the facilitation of credit checks or the 
                facilitation of background checks of employees, 
                prospective employees, or volunteers;
                    ``(C) the retrieval of other information from other 
                businesses, commercial enterprises, government 
                entities, or private nonprofit organizations; or
                    ``(D) when the transmission of the number is 
                incidental to, and in the course of, the sale, lease, 
                franchising, or merger of all, or a portion of, a 
                business;
            ``(6) if the transfer of such a number is part of a data 
        matching program involving a Federal, State, or local agency; 
        or
            ``(7) if such number is required to be submitted as part of 
        the process for applying for any type of Federal, State, or 
        local government benefit or program;
        except that, nothing in this subsection shall be construed as 
        permitting a professional or commercial user to display or sell 
        a social security number to the general public.
    ``(f) Limitation.--Nothing in this section shall prohibit or limit 
the display, sale, or purchase of social security numbers as permitted 
under title V of the Gramm-Leach-Bliley Act, or for the purpose of 
affiliate sharing as permitted under the Fair Credit Reporting Act, 
except that no entity regulated under such Acts may make social 
security numbers available to the general public, as may be determined 
by the appropriate regulators under such Acts. For purposes of this 
subsection, the general public shall not include affiliates or 
unaffiliated third-party business entities as may be defined by the 
appropriate regulators.''.
            (2) Conforming amendment.--The chapter analysis for chapter 
        47 of title 18, United States Code, is amended by inserting 
        after the item relating to section 1028 the following:

``1028A. Prohibition of the display, sale, or purchase of social 
                            security numbers.''.
    (b) Study; Report.--
            (1) In general.--The Attorney General shall conduct a study 
        and prepare a report on all of the uses of social security 
        numbers permitted, required, authorized, or excepted under any 
        Federal law. The report shall include a detailed description of 
        the uses allowed as of the date of enactment of this Act and 
        shall evaluate whether such uses should be continued or 
        discontinued by appropriate legislative action.
            (2) Report.--Not later than 1 year after the date of 
        enactment of this Act, the Attorney General shall report to 
        Congress findings under this subsection. The report shall 
        include such recommendations for legislation based on criteria 
        the Attorney General determines to be appropriate.

SEC. 7. 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, in connection with doing business with an 
individual, is required--
            (1) under Federal law to submit to the Federal Government 
        such individual's Social Security account number; or
            (2) under Federal or State law to collect or use the 
        individual's Social Security account number.

SEC. 8. 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 or as otherwise required by Federal law.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect 60 days after the date of the enactment of this Act.

SEC. 9. 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 1028A of title 18, United States 
        Code (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 of the amendments made 
under section 2, 3, 4, or 5, as the case may be.

SEC. 10. AUTHORITY FOR JUDICIAL ORDERS OF RESTITUTION.

    (a) Title 18 Amendment.--Section 1028A of title 18, United States 
Code, (as added by section 6 of this Act) is amended by adding at the 
end the following new subsection:
    ``(g) Court Order for Restitution.--
            ``(1) In general.--Any Federal court, when sentencing a 
        defendant convicted of an offense under subsection (b), 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 
        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 of the Social Security Act.--Section 
807(i) of the Social Security 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 the Social Security 
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 807(i) or 1632(b) or under section 1028A(g) 
of title 18, United States Code, 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.

SEC. 11. RESTRICTION ON USE OF CONSUMER MEDICAL INFORMATION.

    (a) Medical Information May Not Be Included With Transaction and 
Experience Reports or Shared With Affiliates.--Section 603(d)(2)(A) of 
the Fair Credit Reporting Act (15 U.S.C. 1681a(d)(2)(A)) is amended by 
striking ``communicated among such persons;'' where such term appears 
at the end of clause (iii) and inserting ``communicated among such 
persons,
                ``to the extent such report or communication does not 
                contain any medical information;''.
    (b) Medical Information Defined.--Section 603(i) of the Fair Credit 
Reporting Act (15 U.S.C. 1681a(i)) is amended to read as follows:
    ``(i) Medical Information.--The term ``medical information'' 
means--
            ``(1) information or records obtained, with the consent of 
        the individual to whom it relates, from licensed physicians or 
        medical practitioners, hospitals, clinics, or other medical or 
        medically related facilities; and
            ``(2) any information, list or description based on, or 
        derived from, information or records from licensed physicians 
        or medical practitioners, hospitals, clinics, or other medical 
        or medically related facilities or transactions involving the 
        services of such physicians, practitioners or facilities, 
        including--
                    ``(A) any individualized list of a consumer's 
                transactions involving individually identifiable 
                medical information or services;
                    ``(B) any individualized list or description of a 
                consumer's characteristics, interests or preferences 
                derived from individually identifiable medical 
                information, services or transactions; and
                    ``(C) any aggregate list of consumers containing or 
                derived from individually identifiable medical 
                information, services or transactions.''
    (c) Use of Medical Information.--Section 604(g) of the Fair Credit 
Reporting Act (15 U.S.C. 1681b(g)) is amended to read as follows:
    ``(g) Medical Information.--
            ``(1) Furnishing reports containing medical information.--A 
        consumer reporting agency shall not furnish for employment 
        purposes, or in connection with a credit or insurance 
        transaction, a consumer report that contains medical 
        information about a consumer, unless--
                    ``(A) the information to be furnished is relevant 
                and necessary to process or effect such employment or 
                transaction requested by the consumer; and
                    ``(B) the consumer provides specific written 
                consent for the furnishing of the report on a separate 
                document that describes in clear and concise language 
                the use for which the information will be furnished.
            ``(2) Use of medical information.--No person may procure or 
        use medical information in connection with any decision to 
        offer, provide, or continue to provide any financial product or 
        service, other than insurance.''.
                                 <all>