[Congressional Record Volume 149, Number 15 (Tuesday, January 28, 2003)]
[Senate]
[Pages S1680-S1685]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. FEINSTEIN (for herself, Mr. Gregg, and Mr. Leahy):
  S. 228. A bill to amend title 18, United States Code, to limit the 
misuse of social security numbers, to establish criminal penalties for 
such misuse, and for other purposes; read the first time.
  Mrs. FEINSTEIN. Mr. President. I rise to reintroduce, along with 
Senator Judd Gregg, the Social Security Number Misuse Prevention Act. 
This is critical legislation, especially in light of the increasing 
number of cases of identity theft.
  In fact, the Federal Trade Commission, FTC, this week announced that 
identity theft is the Nation's top consumer fraud complaint for the 
third consecutive year.
  Last year, this legislation was approved by the Senate Judiciary 
Committee, and the Finance Committee was set to vote on it as well, but 
it got entangled in an unrelated, amendment.
  It is my hope that Congress will approve this legislation this year, 
so that we can begin to protect one of the most fundamental rights of 
all Americans.
  I believe all Americans should have the right to: control how their 
personal identifying information is used. Keep their Social Security 
number out of the public domain. Limit disclosure by public agencies of 
personal information; and I also believe that Americans have the right 
to expect that businesses and government agencies will

[[Page S1681]]

protect your personal information held within their databases.
  Lately, however, these rights have been seriously compromised by 
thieves who are stealing American's identity's in record numbers.
  Just in the last year, identity theft cases have doubled nationwide. 
American consumers filed approximately 163,000 identity theft 
complaints with the FTC in 2002. Fully 43 percent of all the complaints 
the FTC receives are about identity theft.
  My own State, California, has more victims than any other State. The 
FTC recorded 30,738 identity theft cases last year from California 
consumers alone.
  Senator Gregg and I are reintroducing our Social Security number 
protection bill because Social Security numbers are the keys thieves 
use to unlock and take over a person's identity.
  Identity thieves use Social Security numbers to: fraudulently obtain 
credit cards, access existing financial accounts, commit bank fraud, 
falsely obtain employment and government benefits; and create 
additional false identification documents, such as drivers' licenses.
  Sally Twentyman, for instance, had her identity stolen when a thief 
rifled through her mail and stole credit card renewal forms.
  The thief used her name and Social Security number to make $13,000 in 
cash advances and to open two additional credit card accounts in her 
name.
  Not surprisingly, reports of Social Security number misuse have risen 
lockstep with the growth in identity theft.
  Allegations of Social Security number fraud have increased by 600 
percent over the past several years from 11,000 in 1998 to 73,000 in 
2003.
  Social Security Number Prevention Act:
  The goal of this legislation is straightforward, to get Social 
Security numbers out of the public domain so that identity thieves 
can't access the number.
  First, this bill prohibits anyone from selling or displaying an 
individual's Social Security number to the general public without the 
individual's consent, but does permit legitimate business-to-business 
and business-to-government uses of the number.
  This practice occurs today. A stranger or stalker can buy your Social 
Security number off the Internet for a few dollars.
  In one troubling case, Christopher Jones, a twenty-five-year old 
employee at the University of North Carolina-Pembroke, stole 
approximately 3,000 Social Security numbers through his job handing out 
towels and other equipment at the university gym.
  In order to get equipment from Mr. Jones, students had to give him 
their Social Security numbers. Jones mined these numbers over several 
months and advertised the Social Security numbers for sale on eBay with 
an opening bid of $1.00 per number for a block of 1,000 numbers.
  One advertisement, for example, read ``100 (one hundred social 
Security # Numbers Obtain False Credit Cards Idenity Theft I Don't Care 
Bid Starts at a Dollar a Piece USPS Money Orders only all Different.''
  Second, this legislation gives consumers the right to refuse to give 
out their Social Security numbers to companies that don't really need 
it.
  Companies, however, can still require Social Security numbers for 
purposes under the Fair Credit Reporting Act, for background checks, if 
required by law, or if the number is necessary to verify identity or 
prevent fraud.
  Third, this legislation curbs the public display of Social Security 
numbers on government documents. Specifically, the bill removes Social 
Security numbers from government checks and driver's licenses.
  In addition, the bill prohibits governments entities from displaying 
Social Security numbers on public records that are posted on the 
Internet or in electronic media after the effective date of the act.
  I don't believe a complete stranger should not be able to get access 
to my Social Security number from my birth certificate or marriage 
license, especially just by logging onto the Internet!
  Finally, this legislation creates new penalties targeting the misuse 
of Social Security numbers. Specifically, the bill gives the Social 
Security Administration the authority to issue civil penalties of up to 
$5,000 for people who misuse Social Security numbers.
  The bill also creates a maximum five year prison sentence for anyone 
who obtains another person's Social Security number for purpose of 
locating or identifying that individual with the intent to physically 
harm that person.
  This legislation is fundamental to protecting the identities of 
American citizens.
  I look forward to working with Senator Gregg to secure its passage 
this year, and I ask unanimous consent that the text of this 
legislation be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 228

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Social 
     Security Number Misuse Prevention Act''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Prohibition of the display, sale, or purchase of social 
              security numbers.
Sec. 4. Application of prohibition of the display, sale, or purchase of 
              social security numbers to public records.
Sec. 5. Rulemaking authority of the Attorney General.
Sec. 6. Treatment of social security numbers on government documents.
Sec. 7. Limits on personal disclosure of a social security number for 
              consumer transactions.
Sec. 8. Extension of civil monetary penalties for misuse of a social 
              security number.
Sec. 9. Criminal penalties for the misuse of a social security number.
Sec. 10. Civil actions and civil penalties.
Sec. 11. Federal injunctive authority.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) The inappropriate display, sale, or purchase of social 
     security numbers has contributed to a growing range of 
     illegal activities, including fraud, identity theft, and, in 
     some cases, stalking and other violent crimes.
       (2) While financial institutions, health care providers, 
     and other entities have often used social security numbers to 
     confirm the identity of an individual, the general display to 
     the public, sale, or purchase of these numbers has been used 
     to commit crimes, and also can result in serious invasions of 
     individual privacy.
       (3) The Federal Government requires virtually every 
     individual in the United States to obtain and maintain a 
     social security 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 numbers have become one of the 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 individuals to 
     exempt themselves from those requirements, it is appropriate 
     for the Federal Government to take steps to stem the abuse of 
     social security numbers.
       (4) The display, sale, or purchase of social security 
     numbers in no way facilitates uninhibited, robust, and wide-
     open public debate, and restrictions on such display, sale, 
     or purchase would not affect public debate.
       (5) No one should seek to profit from the display, sale, or 
     purchase of social security numbers in circumstances that 
     create a substantial risk of physical, emotional, or 
     financial harm to the individuals to whom those numbers are 
     assigned.
       (6) Consequently, this Act provides each individual that 
     has been assigned a social security number some degree of 
     protection from the display, sale, and purchase of that 
     number in any circumstance that might facilitate unlawful 
     conduct.

     SEC. 3. PROHIBITION OF THE DISPLAY, SALE, OR PURCHASE OF 
                   SOCIAL SECURITY NUMBERS.

       (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.

[[Page S1682]]

       ``(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.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date that is 30 days after the date 
     on which the final regulations promulgated under section 5 
     are published in the Federal Register.

     SEC. 4. APPLICATION OF PROHIBITION OF THE DISPLAY, SALE, OR 
                   PURCHASE OF SOCIAL SECURITY NUMBERS TO PUBLIC 
                   RECORDS.

       (a) Public Records Exception.--
       (1) In general.--Chapter 47 of title 18, United States Code 
     (as amended by section 3(a)(1)), is amended by inserting 
     after section 1028A the following:

     ``Sec. 1028B. Display, sale, or purchase of public records 
       containing social security numbers

       ``(a) Definition.--In this section, the term `public 
     record' means any governmental record that is made available 
     to the general public.
       ``(b) In General.--Except as provided in subsections (c), 
     (d), and (e), section 1028A shall not apply to a public 
     record.
       ``(c) Public Records on the Internet or in an Electronic 
     Medium.--
       ``(1) In general.--Section 1028A shall apply to any public 
     record first posted onto the Internet or provided in an 
     electronic medium by, or on behalf of a government entity 
     after the date of enactment of this section, except as 
     limited by the Attorney General in accordance with paragraph 
     (2).
       ``(2) Exception for government entities already placing 
     public records on the internet or in electronic form.--Not 
     later than 60 days after the date of enactment of this 
     section, the Attorney General shall issue regulations 
     regarding the applicability of section 1028A to any record of 
     a category of public records first posted onto the Internet 
     or provided in an electronic medium by, or on behalf of a 
     government entity prior to the date of enactment of this 
     section. The regulations will determine which individual 
     records within categories of records of these government 
     entities, if any, may continue to be posted on the Internet 
     or in electronic form after the effective date of this 
     section. In promulgating these regulations, the Attorney 
     General may include in the regulations a set of procedures 
     for implementing the regulations and shall consider the 
     following:
       ``(A) The cost and availability of technology available to 
     a governmental entity to redact social security numbers from 
     public records first provided in electronic form after the 
     effective date of this section.
       ``(B) The cost or burden to the general public, businesses, 
     commercial enterprises, non-profit organizations, and to 
     Federal, State, and local governments of complying with 
     section 1028A with respect to such records.
       ``(C) The benefit to the general public, businesses, 
     commercial enterprises, non-profit organizations, and to 
     Federal, State, and local governments if the Attorney General 
     were to determine that section 1028A should apply to such 
     records.

     Nothing in the regulation shall permit a public entity to 
     post a category of public records on the Internet or in 
     electronic form after the effective date of this section if 
     such category had not been placed on the Internet or in 
     electronic form prior to such effective date.
       ``(d) Harvested Social Security Numbers.--Section 1028A 
     shall apply to any public record of a government entity which 
     contains social security numbers extracted from other public 
     records for the purpose of displaying or selling such numbers 
     to the general public.
       ``(e) Attorney General Rulemaking on Paper Records.--
       ``(1) In general.--Not later than 60 days after the date of 
     enactment of this section, the Attorney General shall 
     determine the feasibility and advisability of applying 
     section 1028A to the records listed in paragraph (2) when 
     they appear on paper or on another nonelectronic medium. If 
     the Attorney General deems it appropriate, the Attorney 
     General may issue regulations applying section 1028A to such 
     records.
       ``(2) List of paper and other nonelectronic records.--The 
     records listed in this paragraph are as follows:
       ``(A) Professional or occupational licenses.
       ``(B) Marriage licenses.
       ``(C) Birth certificates.
       ``(D) Death certificates.
       ``(E) Other short public documents that display a social 
     security number in a routine and consistent manner on the 
     face of the document.
       ``(3) Criteria for attorney general review.--In determining 
     whether section 1028A should apply to the records listed in 
     paragraph (2), the Attorney General shall consider the 
     following:
       ``(A) The cost or burden to the general public, businesses, 
     commercial enterprises, non-profit organizations, and to 
     Federal, State, and local governments of complying with 
     section 1028A.
       ``(B) The benefit to the general public, businesses, 
     commercial enterprises, non-profit organizations, and to 
     Federal, State, and local governments if the Attorney General 
     were to determine that section 1028A should apply to such 
     records.''.
       (2) Conforming Amendment.--The chapter analysis for chapter 
     47 of title 18, United States Code (as amended by section 
     3(a)(2)), is amended by inserting after the item relating to 
     section 1028A the following:

``1028B. Display, sale, or purchase of public records containing social 
              security numbers.''.

       (b) Study and Report on Social Security Numbers in Public 
     Records.--
       (1) Study.--The Comptroller General of the United States 
     shall conduct a study and prepare a report on social security 
     numbers in public records. In developing the report, the 
     Comptroller General shall consult with the Administrative 
     Office of the United States Courts, State and local 
     governments that store, maintain, or disseminate public 
     records, and other stakeholders, including members of the 
     private sector who routinely

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     use public records that contain social security numbers.
       (2) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall submit to Congress a report on the study 
     conducted under paragraph (1). The report shall include a 
     detailed description of the activities and results of the 
     study and recommendations for such legislative action as the 
     Comptroller General considers appropriate. The report, at a 
     minimum, shall include--
       (A) a review of the uses of social security numbers in non-
     federal public records;
       (B) a review of the manner in which public records are 
     stored (with separate reviews for both paper records and 
     electronic records);
       (C) a review of the advantages or utility of public records 
     that contain social security numbers, including the utility 
     for law enforcement, and for the promotion of homeland 
     security;
       (D) a review of the disadvantages or drawbacks of public 
     records that contain social security numbers, including 
     criminal activity, compromised personal privacy, or threats 
     to homeland security;
       (E) the costs and benefits for State and local governments 
     of removing social security numbers from public records, 
     including a review of current technologies and procedures for 
     removing social security numbers from public records; and
       (F) an assessment of the benefits and costs to businesses, 
     their customers, and the general public of prohibiting the 
     display of social security numbers on public records (with 
     separate assessments for both paper records and electronic 
     records).
       (c) Effective Date.--The prohibition with respect to 
     electronic versions of new classes of public records under 
     section 1028B(b) of title 18, United States Code (as added by 
     subsection (a)(1)) shall not take effect until the date that 
     is 60 days after the date of enactment of this Act.

     SEC. 5. RULEMAKING AUTHORITY OF THE ATTORNEY GENERAL.

       (a) In General.--Except as provided in subsection (b), the 
     Attorney General may prescribe such rules and regulations as 
     the Attorney General deems necessary to carry out the 
     provisions of section 1028A(e)(5) of title 18, United 
     States Code (as added by section 3(a)(1)).
       (b) Display, Sale, or Purchase Rulemaking With Respect to 
     Interactions Between Businesses, Governments, or Business and 
     Government.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Attorney General, in consultation 
     with the Commissioner of Social Security, the Chairman of the 
     Federal Trade Commission, and such other heads of Federal 
     agencies as the Attorney General determines appropriate, 
     shall conduct such rulemaking procedures in accordance with 
     subchapter II of chapter 5 of title 5, United States Code, as 
     are necessary to promulgate regulations to implement and 
     clarify the uses occurring as a result of an interaction 
     between businesses, governments, or business and government 
     (regardless of which entity initiates the interaction) 
     permitted under section 1028A(e)(5) of title 18, United 
     States Code (as added by section 3(a)(1)).
       (2) Factors to be considered.--In promulgating the 
     regulations required under paragraph (1), the Attorney 
     General shall, at a minimum, consider the following:
       (A) The benefit to a particular business, to customers of 
     the business, and to the general public of the display, sale, 
     or purchase of an individual's social security number.
       (B) The costs that businesses, customers of businesses, and 
     the general public may incur as a result of prohibitions on 
     the display, sale, or purchase of social security numbers.
       (C) The risk that a particular business practice will 
     promote the use of a social security number to commit fraud, 
     deception, or crime.
       (D) The presence of adequate safeguards and procedures to 
     prevent--
       (i) misuse of social security numbers by employees within a 
     business; and
       (ii) misappropriation of social security numbers by the 
     general public, while permitting internal business uses of 
     such numbers.
       (E) The presence of procedures to prevent identity thieves, 
     stalkers, and other individuals with ill intent from posing 
     as legitimate businesses to obtain social security numbers.

     SEC. 6. TREATMENT OF SOCIAL SECURITY NUMBERS ON GOVERNMENT 
                   DOCUMENTS.

       (a) Prohibition of Use of Social Security Account Numbers 
     on Checks Issued for Payment by Governmental Agencies.--
       (1) In general.--Section 205(c)(2)(C) of the Social 
     Security Act (42 U.S.C. 405(c)(2)(C)) is amended by adding at 
     the end the following:
       ``(x) No Federal, State, or local agency may display the 
     social security account number of any individual, or any 
     derivative of such number, on any check issued for any 
     payment by the Federal, State, or local agency.''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply with respect to violations of section 
     205(c)(2)(C)(x) of the Social Security Act (42 U.S.C. 
     405(c)(2)(C)(x)), as added by paragraph (1), occurring after 
     the date that is 3 years after the date of enactment of this 
     Act.
       (b) Prohibition of Appearance of Social Security Account 
     Numbers on Driver's Licenses or Motor Vehicle Registration.--
       (1) In general.--Section 205(c)(2)(C)(vi) of the Social 
     Security Act (42 U.S.C. 405(c)(2)(C)(vi)) is amended--
       (A) by inserting ``(I)'' after ``(vi)''; and
       (B) by adding at the end the following:
       ``(II)(aa) An agency of a State (or political subdivision 
     thereof), in the administration of any driver's license or 
     motor vehicle registration law within its jurisdiction, may 
     not display the social security account numbers issued by the 
     Commissioner of Social Security, or any derivative of such 
     numbers, on the face of any driver's license or motor vehicle 
     registration or any other document issued by such State (or 
     political subdivision thereof) to an individual for purposes 
     of identification of such individual.
       ``(bb) Nothing in this subclause shall be construed as 
     precluding an agency of a State (or political subdivision 
     thereof), in the administration of any driver's license or 
     motor vehicle registration law within its jurisdiction, from 
     using a social security account number for an internal use or 
     to link with the database of an agency of another State that 
     is responsible for the administration of any driver's license 
     or motor vehicle registration law.''.
       (2) Effective date.--The amendments made by this subsection 
     shall apply with respect to licenses, registrations, and 
     other documents issued or reissued after the date that is 1 
     year after the date of enactment of this Act.
       (c) Prohibition of Inmate Access to Social Security Account 
     Numbers.--
       (1) In general.--Section 205(c)(2)(C) of the Social 
     Security Act (42 U.S.C. 405(c)(2)(C)) (as amended by 
     subsection (b)) is amended by adding at the end the 
     following:
       ``(xi) No Federal, State, or local agency 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.''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply with respect to employment of prisoners, or entry 
     into contract with prisoners, after the date that is 1 year 
     after the date of enactment of this Act.

     SEC. 7. LIMITS ON PERSONAL DISCLOSURE OF A SOCIAL SECURITY 
                   NUMBER FOR CONSUMER TRANSACTIONS.

       (a) In General.--Part A of title XI of the Social Security 
     Act (42 U.S.C. 1301 et seq.) is amended by adding at the end 
     the following:

     ``SEC. 1150A. LIMITS ON PERSONAL DISCLOSURE OF A SOCIAL 
                   SECURITY NUMBER FOR CONSUMER TRANSACTIONS.

       ``(a) In General.--A commercial entity may not require an 
     individual to provide the individual's social security number 
     when purchasing a commercial good or service or deny an 
     individual the good or service for refusing to provide that 
     number except--
       ``(1) for any purpose relating to--
       ``(A) obtaining a consumer report for any purpose permitted 
     under the Fair Credit Reporting Act;
       ``(B) a background check of the individual conducted by a 
     landlord, lessor, employer, voluntary service agency, or 
     other entity as determined by the Attorney General;
       ``(C) law enforcement; or
       ``(D) a Federal, State, or local law requirement; or
       ``(2) if the social security number is necessary to verify 
     the identity of the consumer to effect, administer, or 
     enforce the specific transaction requested or authorized by 
     the consumer, or to prevent fraud.
       ``(b) Application of Civil Money Penalties.--A violation of 
     this section shall be deemed to be a violation of section 
     1129(a)(3)(F).
       ``(c) Application of Criminal Penalties.--A violation of 
     this section shall be deemed to be a violation of section 
     208(a)(8).
       ``(d) Limitation on Class Actions.--No class action 
     alleging a violation of this section shall be maintained 
     under this section by an individual or any private party in 
     Federal or State court.
       ``(e) State Attorney General Enforcement.--
       ``(1) In general.--
       ``(A) Civil actions.--In any case in which the attorney 
     general of a State has reason to believe that an interest of 
     the residents of that State has been or is threatened or 
     adversely affected by the engagement of any person in a 
     practice that is prohibited under this section, the State, as 
     parens patriae, may bring a civil action on behalf of the 
     residents of the State in a district court of the United 
     States of appropriate jurisdiction to--
       ``(i) enjoin that practice;
       ``(ii) enforce compliance with such section;
       ``(iii) obtain damages, restitution, or other compensation 
     on behalf of residents of the State; or
       ``(iv) obtain such other relief as the court may consider 
     appropriate.
       ``(B) Notice.--
       ``(i) In general.--Before filing an action under 
     subparagraph (A), the attorney general of the State involved 
     shall provide to the Attorney General--

       ``(I) written notice of the action; and
       ``(II) a copy of the complaint for the action.

       ``(ii) Exemption.--

       ``(I) In general.--Clause (i) shall not apply with respect 
     to the filing of an action by an attorney general of a State 
     under this subsection, if the State attorney general 
     determines that it is not feasible to provide the

[[Page S1684]]

     notice described in such subparagraph before the filing of 
     the action.
       ``(II) Notification.--With respect to an action described 
     in subclause (I), the attorney general of a State shall 
     provide notice and a copy of the complaint to the Attorney 
     General at the same time as the State attorney general files 
     the action.

       ``(2) Intervention.--
       ``(A) In general.--On receiving notice under paragraph 
     (1)(B), the Attorney General shall have the right to 
     intervene in the action that is the subject of the notice.
       ``(B) Effect of intervention.--If the Attorney General 
     intervenes in the action under paragraph (1), the Attorney 
     General shall have the right to be heard with respect to any 
     matter that arises in that action.
       ``(3) Construction.--For purposes of bringing any civil 
     action under paragraph (1), nothing in this section shall be 
     construed to prevent an attorney general of a State from 
     exercising the powers conferred on such attorney general by 
     the laws of that State to--
       ``(A) conduct investigations;
       ``(B) administer oaths or affirmations; or
       ``(C) compel the attendance of witnesses or the production 
     of documentary and other evidence.
       ``(4) Actions by the attorney general of the united 
     states.--In any case in which an action is instituted by or 
     on behalf of the Attorney General for violation of a practice 
     that is prohibited under this section, no State may, during 
     the pendency of that action, institute an action under 
     paragraph (1) against any defendant named in the complaint in 
     that action for violation of that practice.
       ``(5) Venue; service of process.--
       ``(A) Venue.--Any action brought under paragraph (1) may be 
     brought in the district court of the United States that meets 
     applicable requirements relating to venue under section 1391 
     of title 28, United States Code.
       ``(B) Service of process.--In an action brought under 
     paragraph (1), process may be served in any district in which 
     the defendant--
       ``(i) is an inhabitant; or
       ``(ii) may be found.
       ``(f) Sunset.--This section shall not apply on or after the 
     date that is 6 years after the effective date of this 
     section.''.
       (b) Evaluation and Report.--Not later than the date that is 
     6 years and 6 months after the date of enactment of this Act, 
     the Attorney General, in consultation with the chairman of 
     the Federal Trade Commission, shall issue a report evaluating 
     the effectiveness and efficiency of section 1150A of the 
     Social Security Act (as added by subsection (a)) and shall 
     make recommendations to Congress as to any legislative action 
     determined to be necessary or advisable with respect to such 
     section, including a recommendation regarding whether to 
     reauthorize such section.
       (c) Effective Date.--The amendment made by subsection (a) 
     shall apply to requests to provide a social security number 
     occurring after the date that is 1 year after the date of 
     enactment of this Act.

     SEC. 8. EXTENSION OF CIVIL MONETARY PENALTIES FOR MISUSE OF A 
                   SOCIAL SECURITY NUMBER.

       (a) Treatment of Withholding of Material Facts.--
       (1) Civil penalties.--The first sentence of section 
     1129(a)(1) of the Social Security Act (42 U.S.C. 1320a-
     8(a)(1)) is amended--
       (A) by striking ``who'' and inserting ``who--'';
       (B) by striking ``makes'' and all that follows through 
     ``shall be subject to'' and inserting the following:
       ``(A) makes, or causes to be made, a statement or 
     representation of a material fact, for use in determining any 
     initial or continuing right to or the amount of monthly 
     insurance benefits under title II or benefits or payments 
     under title VIII or XVI, that the person knows or should know 
     is false or misleading;

       ``(B) makes such a statement or representation for such use 
     with knowing disregard for the truth; or
       ``(C) omits from a statement or representation for such 
     use, or otherwise withholds disclosure of, a fact which the 
     individual knows or should know is material to the 
     determination of any initial or continuing right to or the 
     amount of monthly insurance benefits under title II or 
     benefits or payments under title VIII or XVI and the 
     individual knows, or should know, that the statement or 
     representation with such omission is false or misleading or 
     that the withholding of such disclosure is misleading,
     shall be subject to'';
       (C) by inserting ``or each receipt of such benefits while 
     withholding disclosure of such fact'' after ``each such 
     statement or representation'';
       (D) by inserting ``or because of such withholding of 
     disclosure of a material fact'' after ``because of such 
     statement or representation''; and
       (E) by inserting ``or such a withholding of disclosure'' 
     after ``such a statement or representation''.
       (2) Administrative procedure for imposing penalties.--The 
     first sentence of section 1129A(a) of the Social Security Act 
     (42 U.S.C. 1320a-8a(a)) is amended--
       (A) by striking ``who'' and inserting ``who--''; and
       (B) by striking ``makes'' and all that follows through 
     ``shall be subject to'' and inserting the following:
       ``(1) makes, or causes to be made, a statement or 
     representation of a material fact, for use in determining any 
     initial or continuing right to or the amount of monthly 
     insurance benefits under title II or benefits or payments 
     under title VIII or XVI, that the person knows or should know 
     is false or misleading;
       ``(2) makes such a statement or representation for such use 
     with knowing disregard for the truth; or
       ``(3) omits from a statement or representation for such 
     use, or otherwise withholds disclosure of, a fact which the 
     individual knows or should know is material to the 
     determination of any initial or continuing right to or the 
     amount of monthly insurance benefits under title II or 
     benefits or payments under title VIII or XVI and the 
     individual knows, or should know, that the statement or 
     representation with such omission is false or misleading or 
     that the withholding of such disclosure is misleading,

     shall be subject to''.
       (b) Application of Civil Money Penalties to Elements of 
     Criminal Violations.--Section 1129(a) of the Social Security 
     Act (42 U.S.C. 1320a-8(a)), as amended by subsection (a)(1), 
     is amended--
       (1) by redesignating paragraph (2) as paragraph (4);
       (2) by redesignating the last sentence of paragraph (1) as 
     paragraph (2) and inserting such paragraph after paragraph 
     (1); and
       (3) by inserting after paragraph (2) (as so redesignated) 
     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 displays, sells, or purchases 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 
     display, purchase, or sell it;
       ``(E) counterfeits a social security card, or possesses a 
     counterfeit social security card with intent to display, 
     sell, or purchase it;
       ``(F) discloses, uses, compels the disclosure of, or 
     knowingly displays, sells, or purchases the social security 
     account number of any person in violation of the laws of the 
     United States;
       ``(G) with intent to deceive the Commissioner of Social 
     Security as to such person's true identity (or the true 
     identity of any other person) furnishes or causes to be 
     furnished false information to the Commissioner with respect 
     to any information required by the Commissioner in connection 
     with the establishment and maintenance of the records 
     provided for in section 205(c)(2);
       ``(H) offers, for a fee, to acquire for any individual, or 
     to assist in acquiring for any individual, an additional 
     social security account number or a number which purports to 
     be a social security account number; or
       ``(I) being an officer or employee of a Federal, State, or 
     local agency in possession of any individual's social 
     security account number, willfully acts or fails to act so as 
     to cause a violation by such agency of clause (vi)(II) or (x) 
     of section 205(c)(2)(C),

     shall be subject to, in addition to any other penalties that 
     may be prescribed by law, a civil money penalty of not more 
     than $5,000 for each violation. Such person shall also be 
     subject to an assessment, in lieu of damages sustained by the 
     United States resulting from such violation, of not more than 
     twice the amount of any benefits or payments paid as a result 
     of such violation.''.
       (c) Clarification of Treatment of Recovered Amounts.--
     Section 1129(e)(2)(B) of the Social Security Act (42 U.S.C. 
     1320a-8(e)(2)(B)) is amended by striking ``In the case of 
     amounts recovered arising out of a determination relating to 
     title VIII or XVI,'' and inserting ``In the case of any other 
     amounts recovered under this section,''.
       (d) Conforming Amendments.--
       (1) Section 1129(b)(3)(A) of the Social Security Act (42 
     U.S.C. 1320a-8(b)(3)(A)) is amended by striking ``charging 
     fraud or false statements''.
       (2) Section 1129(c)(1) of the Social Security Act (42 
     U.S.C. 1320a-8(c)(1)) is amended by striking ``and 
     representations'' and inserting ``, representations, or 
     actions''.
       (3) Section 1129(e)(1)(A) of the Social Security Act (42 
     U.S.C. 1320a-8(e)(1)(A)) is amended by striking ``statement 
     or representation referred to in subsection (a) was made'' 
     and inserting ``violation occurred''.
       (e) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply with respect to 
     violations of sections 1129 and 1129A of the Social Security 
     Act (42 U.S.C. 1320-8 and 1320a-8a), as amended by this 
     section, committed after the date of enactment of this Act.
       (2) Violations by government agents in possession of social 
     security numbers.--Section 1129(a)(3)(I) of the Social 
     Security Act (42 U.S.C. 1320a-8(a)(3)(I)), as added by

[[Page S1685]]

     subsection (b), shall apply with respect to violations of 
     that section occurring on or after the effective date 
     described in section 3(c).

     SEC. 9. CRIMINAL PENALTIES FOR THE MISUSE OF A SOCIAL 
                   SECURITY NUMBER.

       (a) Prohibition of Wrongful Use as Personal Identification 
     Number.--No person may obtain any individual's social 
     security number for purposes of locating or identifying an 
     individual with the intent to physically injure, harm, or use 
     the identity of the individual for any illegal purpose.
       (b) Criminal Sanctions.--Section 208(a) of the Social 
     Security Act (42 U.S.C. 408(a)) is amended--
       (1) in paragraph (8), by inserting ``or'' after the 
     semicolon; and
       (2) by inserting after paragraph (8) the following:
       ``(9) except as provided in subsections (e) and (f) of 
     section 1028A of title 18, United States Code, knowingly and 
     willfully displays, sells, or purchases (as those terms are 
     defined in section 1028A(a) of title 18, United States Code) 
     any individual's social security account number without 
     having met the prerequisites for consent under section 
     1028A(d) of title 18, United States Code; or
       ``(10) obtains any individual's social security number for 
     the purpose of locating or identifying the individual with 
     the intent to injure or to harm that individual, or to use 
     the identity of that individual for an illegal purpose;''.

     SEC. 10. CIVIL ACTIONS AND CIVIL PENALTIES.

       (a) Civil Action in State Courts.--
       (1) In general.--Any individual aggrieved by an act of any 
     person in violation of this Act or any amendments made by 
     this Act may, if otherwise permitted by the laws or rules of 
     the court of a State, bring in an appropriate court of that 
     State--
       (A) an action to enjoin such violation;
       (B) an action to recover for actual monetary loss from such 
     a violation, or to receive up to $500 in damages for each 
     such violation, whichever is greater; or
       (C) both such actions.

     It shall be an affirmative defense in any action brought 
     under this paragraph that the defendant has established and 
     implemented, with due care, reasonable practices and 
     procedures to effectively prevent violations of the 
     regulations prescribed under this Act. If the court finds 
     that the defendant willfully or knowingly violated the 
     regulations prescribed under this subsection, the court may, 
     in its discretion, increase the amount of the award to an 
     amount equal to not more than 3 times the amount available 
     under subparagraph (B).
       (2) Statute of limitations.--An action may be commenced 
     under this subsection not later than the earlier of--
       (A) 5 years after the date on which the alleged violation 
     occurred; or
       (B) 3 years after the date on which the alleged violation 
     was or should have been reasonably discovered by the 
     aggrieved individual.
       (3) Nonexclusive remedy.--The remedy provided under this 
     subsection shall be in addition to any other remedies 
     available to the individual.
       (b) Civil Penalties.--
       (1) In general.--Any person who the Attorney General 
     determines has violated any section of this Act or of any 
     amendments made by this Act shall be subject, in addition to 
     any other penalties that may be prescribed by law--
       (A) to a civil penalty of not more than $5,000 for each 
     such violation; and
       (B) to a civil penalty of not more than $50,000, if the 
     violations have occurred with such frequency as to constitute 
     a general business practice.
       (2) Determination of violations.--Any willful violation 
     committed contemporaneously with respect to the social 
     security numbers of 2 or more individuals by means of mail, 
     telecommunication, or otherwise, shall be treated as a 
     separate violation with respect to each such individual.
       (3) Enforcement procedures.--The provisions of section 
     1128A of the Social Security Act (42 U.S.C. 1320a-7a), other 
     than subsections (a), (b), (f), (h), (i), (j), (m), and (n) 
     and the first sentence of subsection (c) of such section, and 
     the provisions of subsections (d) and (e) of section 205 of 
     such Act (42 U.S.C. 405) shall apply to a civil penalty 
     action under this subsection in the same manner as such 
     provisions apply to a penalty or proceeding under section 
     1128A(a) of such Act (42 U.S.C. 1320a-7a(a)), except that, 
     for purposes of this paragraph, any reference in section 
     1128A of such Act (42 U.S.C. 1320a-7a) to the Secretary shall 
     be deemed to be a reference to the Attorney General.

     SEC. 11. FEDERAL INJUNCTIVE AUTHORITY.

       In addition to any other enforcement authority conferred 
     under this Act or the amendments made by this Act, the 
     Federal Government shall have injunctive authority with 
     respect to any violation by a public entity of any provision 
     of this Act or of any amendments made by this Act.

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