[Congressional Record Volume 150, Number 109 (Tuesday, September 14, 2004)]
[Senate]
[Pages S9224-S9231]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. FEINSTEIN:
  S. 2801. A bill to amend the Social Security Act to enhance Social 
Security account number privacy protections, to prevent fraudulent 
misuse of the Social Security account number, and to otherwise enhance 
protection against identity theft, and for other purposes; to the 
Committee on Finance.
  Mrs. FEINSTEIN. Mr. President, I rise to introduce legislation to 
protect one of Americans' most valuable but vulnerable assets: Social 
Security Numbers. The bill I propose today is identical to legislation 
that is making progress in the House of Representatives. Just before 
recess, the House Ways and Means Committee passed the bill not only 
with bipartisan support, but with unanimous support. Even though this 
bill has differences from S. 228, which I proposed at the beginning of 
this Congress to help prevent the misuse of Social Security numbers, 
the issue is too important for me, or for any other Senator, to stand 
by and do nothing.
  The legislation, which in the House is H.R. 2971, was authored by 
Representative Clay Shaw, the Republican from Florida's 22nd 
Congressional District. Very briefly, the key provisions of the 
legislation will do the following: It will generally prohibit the 
Federal and State governments, and private businesses, from displaying, 
buying, and selling Social Security Numbers. However, realizing that 
there are certain instances where Social Security Numbers must be 
communicated, the bill makes exceptions for areas such as law 
enforcement, national security, vehicle registration, and certain 
limited forms of research.
  The bill will also toughen the methods that the Social Security 
Administration uses to verify birth records, and that it uses to issue 
Social Security numbers to newborn infants.
  Additionally, the legislation will prohibit companies from requiring 
consumers to provide their Social Security Numbers, and will treat any 
such requirement as a prohibited unfair trade practice.
  The bill will also punish violators with fines and up to five years 
in prison, with up to 25 years for those who are involved in drug 
trafficking or terrorism.
  The bill also allows other sections of Federal law to impose stronger 
restrictions, and calls for reports analyzing the process for issuing 
Social Security Numbers.
  This legislation is necessary to help stop the epidemic of identity 
theft that has been plaguing America and its citizens.
  According to a report that the Federal Trade Commission released in 
September, 2003, almost ten million people were victimized by identity 
theft in the previous year. This led to losses of over 47 billion 
dollars.
  The damage is not merely monetary. According to the same FTC report, 
the average victim had to spend thirty hours that is, three-fourths of 
a standard work-week--to resolve the problems. Often, the entire 
process can drag out for years.
  Perhaps worst of all, victims must confront the trauma that someone 
else has hijacked their very identity. According to the Identity Theft 
Resource Center, a non-profit group that operates in my home state of 
California: ``Each time you answer the telephone or go to the mailbox, 
you wonder what new bill will appear. The idea of dealing with yet 
another collection agency or a newly discovered credit card leaves you 
filled with dread, rage and helplessness. . . . Some feel like they are 
experiencing a form of `post-traumatic stress disorder' for a short 
time.''
  Theft of a Social Security number can be especially devastating, 
because that piece of information has become a de facto universal 
identifier in American society.
  One recent book on privacy in the United States documents how far the 
use of Social Security Numbers has spread beyond its original purpose, 
when they were created in 1936, of tracking American workers' earnings 
and benefits. According to the book: ``The SSN began to be used for 
military personnel, legally admitted aliens, anyone receiving or 
applying for federal benefits, food stamps, school lunch program 
eligibility, draft registration, and federal loans. State and local 
governments, as well as private sector entities such as schools and 
banks, began to use SSNs as well--for drivers' licenses, birth 
certificates, blood donation, jury selection, worker's compensation, 
occupational licenses, and marriage licenses. `` (SOURCE: Daniel Solove 
and Marc Rotenberg, Information Privacy Law, Aspen Publishers, 2003, at 
page 447-48.)

  Despite this widespread use of Social Security Numbers, according to 
the General Accounting Office, ``No single federal law regulates the 
overall use or restricts the disclosure of SSNs by governments.'' 
(SOURCE: Social Security Numbers: SSNs are Widely Used by Government 
and Could be Better Protected, 2002 (Report Number GAO-02-691T) at page 
5). As a result, the use of Social Security Numbers is regulated by an 
inconsistent and insufficient patchwork of State and Federal laws, that 
often leaves the numbers in plain view of the whole world.
  It isn't surprising, then, that the sale of Social Security Numbers 
is proceeding at a furious pace. According to the GAO in a report that 
it released earlier this year, ``Internet-based information resellers 
whose Web sites we accessed also obtain SSNs from their customers and 
scour public records and other publicly available information to 
provide the information to persons willing to pay a fee.'' (SOUCE: 
Social Security Numbers: Private Sector Entities Routinely Obtain and 
Use SSNs, and Laws Limit the Disclosure of this Information (2004, 
Report Number GAO-04-11), on Highlights Page).
  I personally first became aware of the need for a law to restrict the 
sale and display of Social Security numbers about eight years ago, when 
one of my staff members sat me down and downloaded my own Social 
Security Number from the Internet in a matter of minutes. Congress has 
done shockingly little to protect Social Security Numbers since then.
  Therefore, we badly need a uniform law such as the one that the GAO 
report anticipates. Year after year, I have advocated and proposed such 
legislation that would restrict the public display and use of Social 
Security Numbers.
  In the 106th Congress, I introduced S. 2966.
  In the 107th Congress, I introduced, S. 848 and S. 3100.
  In the 108th Congress, I introduced S. 228.
  None of these bills moved. Today, I stand before you yet again, to 
introduce a fifth bill to take steps that will make it more difficult 
for thieves to steal this precious resource. This is not a partisan 
issue--all of the bills that I introduced in the past were bipartisan. 
And so is this bill: in the House, as I mentioned, it was passed 
unanimously in the Ways and Means Committee, and also has 41 co-
sponsors, including 16 Republicans and 25 Democrats. This issue does 
not concern Republican government or Democratic government; rather, 
this is an issue of good government.
  Earlier this year, the President signed into law a bill that I helped 
to author, to increase punishment for those who steal the identities of 
others. But punishment is not enough. We need to stop identity theft 
from occurring in the first place.
  We have only three weeks until the end of this Congress to enact this 
legislation to prevent such thefts by protecting Social Security 
Numbers. If we do not pass this legislation now, we will have to wait 
yet again to give basic protection to information that should have been 
under lock and key long ago. It is time for us to act. Thank you.

[[Page S9225]]

  I ask unanimous consent, the text of the accompanying bill be printed 
in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2801

       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 
     2004''.
       (b) Table of Contents.--The table of contents is as 
     follows:

Sec. 1. Short title and table of contents.

 TITLE I--PROVISIONS RELATING TO THE SOCIAL SECURITY ACCOUNT NUMBER IN 
                     THE PUBLIC AND PRIVATE SECTORS

Sec. 101. Restrictions on the sale or display to the general public of 
              social security account numbers by governmental agencies.
Sec. 102. Regulatory authority.
Sec. 103. Prohibition of display of social security account numbers on 
              checks issued for payment by governmental agencies.
Sec. 104. Prohibition of the display of social security account numbers 
              on driver's licenses or motor vehicle registrations.
Sec. 105. Prohibition of the display of personal identification numbers 
              on government employee identification cards or tags.
Sec. 106. Prohibition of inmate access to social security account 
              numbers.
Sec. 107. Measures to preclude unauthorized disclosure of social 
              security account numbers and protect the confidentiality 
              of such numbers.
Sec. 108. Prohibition of sale, purchase, and display to the general 
              public of the social security account number in the 
              private sector.
Sec. 109. Confidential treatment of credit header information.
Sec. 110. Refusal to do business without receipt of social security 
              account number considered unfair or deceptive Act or 
              practice.

 TITLE II--MEASURES TO ENSURE THE INTEGRITY OF APPLICATIONS FOR SOCIAL 
     SECURITY ACCOUNT NUMBERS AND REPLACEMENT SOCIAL SECURITY CARDS

Sec. 201. Independent verification of birth records provided in support 
              of applications for social security account numbers.
Sec. 202. Enumeration at birth.
Sec. 203. Study relating to use of photographic identification in 
              connection with applications for benefits, social 
              security account numbers, and social security cards.
Sec. 204. Restrictions on issuance of multiple replacement social 
              security cards.
Sec. 205. Study relating to modification of the social security account 
              numbering system to show work authorization status.

                         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. Criminal penalties for employees of the Social Security 
              Administration who knowingly and fraudulently issue 
              social security cards or social security account numbers.
Sec. 304. Enhanced penalties in cases of terrorism, drug trafficking, 
              crimes of violence, or prior offenses.

 TITLE I--PROVISIONS RELATING TO THE SOCIAL SECURITY ACCOUNT NUMBER IN 
                     THE PUBLIC AND PRIVATE SECTORS

     SEC. 101. RESTRICTIONS ON THE SALE OR DISPLAY TO THE GENERAL 
                   PUBLIC 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)(I) An executive, legislative, or judicial agency or 
     instrumentality of the Federal Government or of a State or a 
     political subdivision thereof or a 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 
     not sell or display to the general public any social security 
     account number if such number has been disclosed to such 
     agency, instrumentality, trustee, or agent pursuant to the 
     assertion by such an agency, instrumentality, trustee, or 
     agent to any person that disclosure of such number is 
     mandatory. Notwithstanding the preceding sentence, such 
     number may be sold or displayed to the general public in 
     accordance with the exceptions specified in subclauses (II), 
     (III), (IV), (V), (VI), (VII), and (VIII) (and for no other 
     purpose).
       ``(II) Notwithstanding subclause (I), a social security 
     account number may be sold by an agency, instrumentality, 
     trustee, or agent referred to in subclause (I) to the extent 
     that such sale is specifically authorized by this Act.
       ``(III) Notwithstanding subclause (I), a social security 
     account number may be sold by an agency, instrumentality, 
     trustee, or agent referred to in subclause (I) to the extent 
     that is necessary or appropriate for law enforcement or 
     national security purposes, as determined under regulations 
     which shall be issued as provided in subparagraph (I) of this 
     paragraph.
       ``(IV) Notwithstanding subclause (I), a social security 
     account number may be sold by an agency, instrumentality, 
     trustee, or agent referred to in subclause (I) to the extent 
     that such sale is required to comply with a tax law of the 
     United States or of any State (or political subdivision 
     thereof).
       ``(V) Notwithstanding subclause (I), a social security 
     account number may be sold by a State department of motor 
     vehicles as authorized under subsection (b) of section 2721 
     of title 18, United States Code, if such number is to be used 
     pursuant to such sale solely for purposes permitted under 
     paragraph (1), (6), or (9) of such subsection.
       ``(VI) Notwithstanding subclause (I), a social security 
     account number may be sold or otherwise made available by an 
     agency, instrumentality, trustee, or agent referred to in 
     subclause (I) to a consumer reporting agency (as defined in 
     section 603(f) of the Fair Credit Reporting Act (15 U.S.C. 
     1681a(f))) for use or disclosure solely for permissible 
     purposes described in section 604(a) of such Act (15 U.S.C. 
     1681b(a)).
       ``(VII) Notwithstanding subclause (I), a social security 
     account number may be sold by an agency, instrumentality, 
     trustee, or agent referred to in subclause (I) to the extent 
     necessary for research (other than market research) conducted 
     by any agency or instrumentality referred to in subclause (I) 
     (or an agent of such an agency or instrumentality) for the 
     purpose of advancing the public good, on the condition that 
     the researcher provides adequate assurances that the social 
     security account numbers will not be used to harass, target, 
     or publicly reveal information concerning any identifiable 
     individuals, that 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 that the researcher has in place 
     appropriate safeguards to protect the privacy and 
     confidentiality of any information about identifiable 
     individuals, including procedures to ensure that the social 
     security account numbers will be encrypted or otherwise 
     appropriately secured from unauthorized disclosure. In the 
     case of social security account numbers which constitute 
     personally identifiable medical information, the Commissioner 
     of Social Security, with respect to medical research referred 
     to in the preceding sentence, and the Attorney General of the 
     United States, with respect to any medical research not 
     referred to in the preceding sentence but which is treated in 
     regulations of the Attorney General issued pursuant to 
     subclause (VIII), shall maintain ongoing consultation with 
     the Office for Civil Rights of the Department of Health and 
     Human Services to ensure that the sale or purchase of such 
     social security account numbers is permitted only in 
     compliance with existing Federal rules and regulations 
     prescribed by the Secretary of Health and Human Services 
     pursuant to section 264(c) of the Health Insurance 
     Portability and Accountability Act of 1996 (110 Stat. 2033).
       ``(VIII) Notwithstanding subclause (I), a social security 
     account number may be sold or displayed to the general public 
     by an agency, instrumentality, trustee, or agent referred to 
     in subclause (I) under such other circumstances as may be 
     specified in regulations issued as provided in subparagraph 
     (I) of this paragraph.
       ``(IX) This clause does not apply with respect to a social 
     security account number of a deceased individual.
       ``(X) For purposes of this clause, the term `sell' means, 
     in connection with a social security account number, to 
     accept an item of material value in exchange for such number.
       ``(XI) For purposes of this clause, the term `display to 
     the general public' shall have the meaning provided such term 
     in section 208A(a)(3)(A). In any case in which an agency, 
     instrumentality, trustee, or agent referred to in subclause 
     (I) requires transmittal to such agency, instrumentality, 
     trustee, or agent of an individual's social security account 
     number by means of the Internet without reasonable provisions 
     to ensure that such number is encrypted or otherwise 
     appropriately secured from disclosure, any such transmittal 
     of such number as so required shall be treated, for purposes 
     of this clause, as a `display to the general public' of such 
     number by such agency, instrumentality, trustee, or agent for 
     purposes of this clause.
       ``(XII) For purposes of this clause, the term social 
     security account number includes any derivative of such 
     number. Notwithstanding the preceding sentence, any 
     expression, contained in or on any item sold or displayed to 
     the general public, shall not be treated as a social security 
     account number solely because such expression sets forth not 
     more than the last 4 digits of such number if the remainder 
     of such number cannot be determined based solely on such 
     expression or any other matter presented in such material.
       ``(XIII) Nothing in this clause shall be construed to 
     supersede, alter, or affect any restriction or limitation on 
     the sale or display

[[Page S9226]]

     to the general public of social security account numbers, 
     provided in any Federal statute, regulation, order, or 
     interpretation, if the restriction or limitation is greater 
     than that provided under this clause, as determined under 
     applicable regulations issued by the Commissioner of Social 
     Security or by the Attorney General of the United States or 
     another agency or instrumentality of the United States as 
     provided in subparagraph (I) of this paragraph.''.
       (b) Effective Date and Related Rules.--
       (1) In general.--Initial final regulations prescribed to 
     carry out the provisions of section 205(c)(2)(C)(x) of the 
     Social Security Act (added by this section) shall be issued 
     not later than the last date of the 18th calendar month 
     following the date of the enactment of this Act. Such 
     provisions shall take effect, with respect to matters 
     governed by such regulations issued by the Commissioner of 
     Social Security, or (pursuant to section 205(c)(2)(I) of such 
     Act (added by section 102)) by the Attorney General of the 
     United States or any other agency or instrumentality of the 
     United States, 1 year after the date of the issuance of such 
     regulations by the Commissioner, the Attorney General, or 
     such other agency or instrumentality, respectively. Such 
     amendment shall apply in the case of displays to the general 
     public, as defined in section 208A(a)(3) of such Act (added 
     by section 108), to such displays originally occurring after 
     such 1-year period. Such provisions shall not apply with 
     respect to any display of a record (containing a social 
     security account number (or any derivative thereof)) 
     generated prior to the close of such 1-year period.
       (2) Sunset of exception.--The last sentence of subclause 
     (XI) of section 205(c)(2)(C)(x) of the Social Security Act 
     (added by this section) shall cease to be effective with 
     respect to sales, purchases, or displays to the general 
     public occurring after 6 years after the 18th calendar month 
     referred to in paragraph (1).

     SEC. 102. REGULATORY AUTHORITY.

       Section 205(c)(2) of the Social Security Act (42 U.S.C. 
     405(c)(2)) is amended by adding at the end the following new 
     subparagraph:
       ``(I)(i) The Attorney General of the United States shall 
     prescribe regulations to carry out the provisions of 
     subclauses (III) and (VIII) of subparagraph (C)(x) of this 
     paragraph, subparagraphs (A) and (B) of section 208A(b)(2), 
     section 208A(b)(3)(B), and section 208A(c)(2). In issuing 
     such regulations, the Attorney General shall consult with the 
     Commissioner of Social Security, the Secretary of Health and 
     Human Services, the Secretary of Homeland Security, the 
     Secretary of the Treasury, the Federal Trade Commission, the 
     Federal banking agencies (as defined in section 3 of the 
     Federal Deposit Insurance Act), the National Credit Union 
     Administration, the Securities and Exchange Commission, State 
     attorneys general, and such representatives of the State 
     insurance commissioners as may be designated by the National 
     Association of Insurance Commissioners. Any agency or 
     instrumentality of the United States may exercise the 
     authority of the Attorney General under this subparagraph, 
     with respect to matters otherwise subject to regulation by 
     such agency or instrumentality, to the extent determined 
     appropriate in regulations of the Attorney General.
       ``(ii) In issuing the regulations described in clause (i) 
     pursuant to the provisions of subparagraph (C)(x)(III), 
     paragraph (A) or (B) of section 208A(b)(2), or section 
     208A(c)(2) (relating to law enforcement and national 
     security), the Attorney General may authorize the sale or 
     purchase of Social Security account numbers only if the 
     Attorney General determines that--
       ``(I) such sale or purchase would serve a compelling public 
     interest that cannot reasonably be served through alternative 
     measures, and
       ``(II) such sale or purchase will not pose an unreasonable 
     risk of identity theft, or bodily, emotional, or financial 
     harm to an individual (taking into account any restrictions 
     and conditions that the Attorney General imposes on the sale, 
     purchase, or disclosure).
       ``(iii) In issuing the regulations described in clause (i) 
     pursuant to the provisions of subparagraph (C)(x)(VIII) of 
     this paragraph or section 208A(b)(3)(B), the Attorney General 
     may authorize the sale, purchase, or display to the general 
     public of social security account numbers only after 
     considering, among other relevant factors--
       ``(I) the associated cost or burden to the general public, 
     businesses, commercial enterprises, non-profit organizations, 
     and Federal, State, and local governments; and
       ``(II) the associated benefit to the general public, 
     businesses, commercial enterprises, non-profit associations, 
     and Federal, State, and local governments.
       ``(iv) If, after considering the factors in clause (iii), 
     the Attorney General authorizes, in regulations referred to 
     in clause (iii), the sale, purchase, or display to the 
     general public of social security account numbers, the 
     Attorney General shall impose restrictions and conditions on 
     the sale, purchase, or display to the general public to the 
     extent necessary--
       ``(I) to provide reasonable assurances that social security 
     account numbers will not be used to commit or facilitate 
     fraud, deceptions, or crime, and
       ``(II) to prevent an unreasonable risk of identity theft or 
     bodily, emotional, or financial harm to any individual, 
     considering the nature, likelihood, and severity of the 
     anticipated harm that could result from the sale, purchase, 
     or display to the general public of social security account 
     numbers, together with the nature, likelihood, and extent of 
     any benefits that could be realized.
       ``(v) In the issuance of regulations pursuant to this 
     subparagraph, notice shall be provided as described in 
     paragraphs (1), (2), and (3) of section 553(b) of title 5, 
     United States Code, and opportunity to participate in the 
     rule making shall be provided in accordance with section 
     553(c) of such title.
       ``(vi) Each agency and instrumentality exercising authority 
     to issue regulations under this subparagraph shall consult 
     and coordinate with the other such agencies and 
     instrumentalities for the purposes of assuring, to the extent 
     possible, that the regulations prescribed by each such agency 
     or instrumentality are consistent and comparable, as 
     appropriate, with the regulations prescribed by the other 
     such agencies and instrumentalities. The Attorney General 
     shall undertake to facilitate such consultation and 
     coordination.
       ``(vii) For purposes of this subparagraph, the terms 
     `sell', `purchase', and `display to the general public' shall 
     have the meanings provided such terms under subparagraph 
     (C)(x) of this paragraph or under section 208A(a), as 
     applicable.
       ``(viii) For purposes of this subparagraph, subparagraph 
     (C)(x)(XI) shall apply.''.

     SEC. 103. PROHIBITION OF 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 section 
     101) is amended further by adding at the end the following 
     new clause:
       ``(xi) 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 
     (or any derivative of such number) on any check issued for 
     any payment by the Federal Government, any State or political 
     subdivision thereof, or any agency or instrumentality 
     thereof, 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 checks (and documents attached to 
     or accompanying such checks) issued after 1 year after the 
     date of the enactment of this Act.

     SEC. 104. PROHIBITION OF THE DISPLAY 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) Any 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 display a social security account 
     number issued by the Commissioner of Social Security (or any 
     derivative of such number) 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 or include on any such 
     license, registration, or other document a magnetic strip, 
     bar code, or other means of communication which conveys such 
     number (or derivative thereof).''.
       (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. 105. PROHIBITION OF THE DISPLAY OF PERSONAL 
                   IDENTIFICATION NUMBERS ON GOVERNMENT EMPLOYEE 
                   IDENTIFICATION CARDS OR TAGS.

       (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 
     political subdivision thereof, and no other person offering 
     benefits in connection with an employee benefit plan 
     maintained by such agency or instrumentality or acting as an 
     agent of such agency or instrumentality, may display a social 
     security account number (or any derivative thereof) on any 
     card or tag that is commonly provided to employees of such 
     agency or instrumentality (or to their family members) for 
     purposes of identification or include on such card or tag a 
     magnetic strip, bar code, or other means of communication 
     which conveys such number.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply with respect to cards or tags issued after 1 year 
     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:
       ``(xiii) No executive, legislative, or judicial agency or 
     instrumentality of the Federal

[[Page S9227]]

     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.''.
       (b) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendment made by this section shall apply with respect to 
     employment of prisoners, or entry into contract for the use 
     or employment of prisoners, on or after the date of the 
     enactment of this Act.
       (2) Treatment of current arrangements.--In the case of--
       (A) prisoners employed as described in clause (xiii) of 
     section 205(c)(2)(C) of the Social Security Act (as added by 
     this section) on the date of the enactment of this Act, and
       (B) contracts described in such clause in effect on such 
     date,

     the amendment made by this section shall take effect 90 days 
     after the date of the enactment of this Act.

     SEC. 107. MEASURES TO PRECLUDE UNAUTHORIZED DISCLOSURE OF 
                   SOCIAL SECURITY ACCOUNT NUMBERS AND PROTECT THE 
                   CONFIDENTIALITY OF SUCH 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) Except as otherwise provided in this paragraph, in 
     the case of any executive, legislative, or judicial agency or 
     instrumentality of the Federal Government or of a State or 
     political subdivision thereof and any trustee appointed in a 
     case under title 11, United States Code (and any agent of 
     such agency, instrumentality, or trustee) having in its 
     possession an individual's social security account number--
       ``(I) no officer or employee thereof shall have access to 
     such number for any purpose other than the effective 
     administration of the statutory provisions governing its 
     functions,
       ``(II) such agency, instrumentality, trustee, or agent 
     shall restrict, to the satisfaction of the Commissioner of 
     Social Security, access to social security account numbers 
     obtained thereby to officers and employees thereof whose 
     duties or responsibilities require access for the 
     administration or enforcement of such provisions, and
       ``(III) such agency, instrumentality, trustee, or agent 
     shall provide such other safeguards as the Commissioner of 
     Social Security determines to be necessary or appropriate to 
     preclude unauthorized access to the social security account 
     number and to otherwise protect the confidentiality of such 
     number.

     For purposes of this clause the term social security account 
     number includes any derivative thereof. ''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect 1 year after the date of the enactment of 
     this Act.

     SEC. 108. PROHIBITION OF THE SALE, PURCHASE, AND DISPLAY TO 
                   THE GENERAL PUBLIC 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, 
     and display to the general public of the Social Security 
     account number in the private sector
       ``Sec. 208A. (a) Definitions.--For purposes of 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) Selling and purchasing.--
       ``(A) In general.--Subject to subparagraph (B)--
       ``(i) Sell.--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.
       ``(ii) 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.
       ``(B) Exceptions.--The terms `sell' and `purchase' in 
     connection with a social security account number do not 
     include the submission of such number as part of--
       ``(i) the process for applying for any type of Government 
     benefits or programs (such as grants or loans or welfare or 
     other public assistance programs),
       ``(ii) the administration of, or provision of benefits 
     under, an employee benefit plan, or
       ``(iii) the sale, lease, merger, transfer, or exchange of a 
     trade or business.
       ``(3) Display to the general public.--
       ``(A) In general.--The term `display to the general public' 
     means, in connection with a social security account number, 
     to intentionally place such number in a viewable manner on an 
     Internet site that is available to the general public or to 
     make such number available in any other manner intended to 
     provide access to such number by the general public.
       ``(B) Internet transmissions.--In any case in which a 
     person requires, as a condition of doing business with such 
     person, transmittal to such person of an individual's social 
     security account number by means of the Internet without 
     reasonable provisions to ensure that such number is encrypted 
     or otherwise secured from disclosure, any such transmittal of 
     such number as so required shall be treated as a `display to 
     the general public' of such number by such person.
       ``(4) Social security account number.--The term `social 
     security account number' has the meaning given such term in 
     section 208(c), except that such term includes any derivative 
     of such number. Notwithstanding the preceding sentence, any 
     expression, contained in or on any item sold or displayed to 
     the general public, shall not be treated as a social security 
     account number solely because such expression sets forth not 
     more than the last 4 digits of such number, if the remainder 
     of such number cannot be determined based solely on such 
     expression or any other matter presented in or on such item.
       ``(b) Prohibition of Sale, Purchase, and Display to the 
     General Public.--(1) Except as provided in paragraph (2), it 
     shall be unlawful for any person to--
       ``(A) sell or purchase a social security account number or 
     display to the general public a social security account 
     number, or
       ``(B) 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.
       ``(2) Notwithstanding paragraph (1), and subject to 
     paragraph (3), a social security account number may be sold 
     or purchased by any person to the extent provided in this 
     subsection (and for no other purpose) as follows:
       ``(A) to the extent necessary for law enforcement, 
     including (but not limited to) the enforcement of a child 
     support obligation, as determined under regulations issued as 
     provided in section 205(c)(2)(I);
       ``(B) to the extent necessary for national security 
     purposes, as determined under regulations issued as provided 
     in section 205(c)(2)(I);
       ``(C) to the extent necessary for public health purposes;
       ``(D) to the extent necessary in emergency situations to 
     protect the health or safety of 1 or more individuals;
       ``(E) to the extent that the sale or purchase is required 
     to comply with a tax law of the United States or of any State 
     (or political subdivision thereof);
       ``(F) to the extent that the sale or purchase is to or by a 
     consumer reporting agency (as defined in section 603(f) of 
     the Fair Credit Reporting Act (15 U.S.C. 1681a(f))) for use 
     or disclosure solely for permissible purposes described in 
     section 604(a) of such Act (15 U.S.C. 1681b(a)); and
       ``(G) to the extent necessary for research (other than 
     market research) conducted by an agency or instrumentality of 
     the United States or of a State or political subdivision 
     thereof (or an agent of such an agency or instrumentality) 
     for the purpose of advancing the public good, on the 
     condition that the researcher provides adequate assurances 
     that--
       ``(i) the social security account numbers will not be used 
     to harass, target, or publicly reveal information concerning 
     any identifiable individuals;
       ``(ii) information about identifiable individuals obtained 
     from the research will not be used to make decisions that 
     directly affect the rights, benefits, or privileges of 
     specific individuals; and
       ``(iii) the researcher has in place appropriate safeguards 
     to protect the privacy and confidentiality of any information 
     about identifiable individuals, including procedures to 
     ensure that the social security account numbers will be 
     encrypted or otherwise appropriately secured from 
     unauthorized disclosure.
       ``(3) Notwithstanding paragraph (1), a social security 
     account number assigned to an individual may be sold, 
     purchased, or displayed to the general public by any person--
       ``(A) to the extent consistent with such individual's 
     voluntary and affirmative written consent to the sale, 
     purchase, or display of the social security account number, 
     but only if--
       ``(i) the terms of the consent and the right to refuse 
     consent are presented to the individual in a clear, 
     conspicuous, and understandable manner,
       ``(ii) the individual is placed under no obligation to 
     provide consent to any such sale, purchase, or display, and
       ``(iii) the terms of the consent authorize the individual 
     to limit the sale, purchase, or display to purposes directly 
     associated with the transaction with respect to which the 
     consent is sought, and
       ``(B) under such circumstances as may be deemed appropriate 
     in regulations issued as provided under section 205(c)(2)(I).
       ``(4) In the case of social security account numbers which 
     constitute personally identifiable medical information--
       ``(A) the Commissioner of Social Security, with respect to 
     medical research referred to in paragraph (3)(A), and
       ``(B) the Attorney General of the United States, with 
     respect to any medical research not referred to in paragraph 
     (3)(A) but which

[[Page S9228]]

     is treated in regulations of the Attorney General issued 
     pursuant to paragraph (3)(B),

     shall maintain ongoing consultation with the Office for Civil 
     Rights of the Department of Health and Human Services to 
     ensure that the sale or purchase of such social security 
     account numbers is permitted only in compliance with existing 
     Federal rules and regulations prescribed by the Secretary of 
     Health and Human Services pursuant to section 264(c) of the 
     Health Insurance Portability and Accountability Act of 1996 
     (110 Stat. 2033).
       ``(c) Prohibition of Unauthorized Disclosure to Government 
     Agencies or Instrumentalities.--(1) It shall be unlawful for 
     any person to communicate by any means to any agency or 
     instrumentality of the United States or of any State or 
     political subdivision thereof the social security account 
     number of any individual other than such person without the 
     written permission of such individual, unless the number was 
     requested by the agency or instrumentality. In the case of an 
     individual who is legally incompetent, permission provided by 
     the individual's legal representatives shall be deemed to be 
     permission provided by such individual.
       ``(2) Paragraph (1) shall not apply to the extent 
     necessary--
       ``(A) for law enforcement, including (but not limited to) 
     the enforcement of a child support obligation, or
       ``(B) for national security purposes,
     as determined under regulations issued as provided under 
     section 205(c)(2)(I).
       ``(d) Prohibition of the Displays on Cards or Tags Required 
     for Access to Goods, Services, or Benefits.--No person may 
     display a social security account number on any card or tag 
     issued to any other person for the purpose of providing such 
     other person access to any goods, services, or benefits or 
     include on such card or tag a magnetic strip, bar code, or 
     other means of communication which conveys such number.
       ``(e) Prohibition of the Displays on Employee 
     Identification Cards or Tags.--No person that is an employer, 
     and no other person offering benefits in connection with an 
     employee benefit plan maintained by such employer or acting 
     as an agent of such employer, may display a social security 
     account number on any card or tag that is commonly provided 
     to employees of such employer (or to their family members) 
     for purposes of identification or include on such card or tag 
     a magnetic strip, bar code, or other means of communication 
     which conveys such number.
       ``(f) Measures to Preclude Unauthorized Disclosure of 
     Social Security Account Numbers and Protect the 
     Confidentiality of Such Numbers.--Subject to the preceding 
     provisions of this section, any person having in such 
     person's records the social security account number of any 
     individual other than such person shall, to the extent that 
     such records are maintained for the conduct of such person's 
     trade or business--
       ``(1) ensure that no officer or employee thereof has access 
     to such number for any purpose other than as necessary for 
     the conduct of such person's trade or business,
       ``(2) restrict, in accordance with regulations of the 
     Commissioner, access to social security account numbers 
     obtained thereby to officers and employees thereof whose 
     duties or responsibilities require access for the conduct of 
     such person's trade or business, and
       ``(3) provide such safeguards as may be specified, in 
     regulations of the Commissioner, to be necessary or 
     appropriate to preclude unauthorized access to the social 
     security account number and to otherwise protect the 
     confidentiality of such number.
       ``(g) Deceased Individuals.--This section does not apply 
     with respect to the social security account number of a 
     deceased individual.
       ``(h) Criminal Penalty.--Any person who violates this 
     section shall be guilty of a felony and upon conviction 
     thereof shall be fined under title 18, United States Code, or 
     imprisoned for not more than 5 years, or both.
       ``(i) Applicability of Other Protections.--Nothing in this 
     section shall be construed to supersede, alter, or affect any 
     restriction or limitation on the sale, purchase, display to 
     the general public, or other disclosure of social security 
     account numbers, provided in any Federal statute, regulation, 
     order, or interpretation, if the restriction or limitation is 
     greater than that provided under this section, as determined 
     under applicable regulations issued by the Commissioner of 
     Social Security or by the Attorney General of the United 
     States or another agency or instrumentality of the United 
     States as provided in section 205(c)(2)(I).''.
       (b) Effective Date and Related Rules.--
       (1) In general.--Initial final regulations prescribed to 
     carry out the provisions of section 208A of the Social 
     Security Act (added by this section) shall be issued not 
     later than the last date of the 18th calendar month following 
     the date of the enactment of this Act. Such provisions shall 
     take effect, with respect to matters governed by such 
     regulations issued by the Commissioner of Social Security, or 
     (pursuant to section 205(c)(2)(I) of such Act (added by 
     section 102)) by the Attorney General of the United States or 
     any other agency or instrumentality of the United States, 1 
     year after the date of the issuance of such regulations by 
     the Commissioner, the Attorney General, or such other agency 
     or instrumentality, respectively. Section 208A(b) of such Act 
     shall apply in the case of displays to the general public (as 
     defined in section 208A(a)(3) of such Act) to such displays 
     to the general public originally occurring after such 1-year 
     period. Such provisions shall not apply with respect to any 
     such display to the general public of a record (containing a 
     social security account number (or any derivative thereof)) 
     generated prior to the close of such 1-year period.
       (2) Sunset of exception.--The last sentence of section 
     208A(a)(4) of the Social Security Act (added by this section) 
     shall cease to be effective with respect to sales, purchases, 
     or displays to the general public occurring after 6 years 
     after the 18th calendar month referred to in paragraph (1).

     SEC. 109. 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.

     SEC. 110. 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 expressly 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.
       (c) Effective Date.--The preceding provisions of this 
     section shall apply with respect to acts or practices 
     committed after 180 days after the date of the enactment of 
     this Act.

 TITLE II--MEASURES TO ENSURE THE INTEGRITY OF APPLICATIONS FOR SOCIAL 
     SECURITY ACCOUNT NUMBERS AND REPLACEMENT SOCIAL SECURITY CARDS

     SEC. 201. INDEPENDENT VERIFICATION OF BIRTH RECORDS PROVIDED 
                   IN SUPPORT OF APPLICATIONS FOR SOCIAL SECURITY 
                   ACCOUNT NUMBERS.

       (a) Applications for Social Security Account Numbers.--
     Section 205(c)(2)(B)(ii) of the Social Security Act (42 
     U.S.C. 405(c)(2)(B)(ii)) is amended--
       (1) by inserting ``(I)'' after ``(ii)''; and
       (2) by adding at the end the following new subclause:
       ``(II) 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. The Commissioner may 
     provide by regulation for reasonable exceptions from the 
     requirement for independent verification under this subclause 
     in any case in which the Commissioner determines there is 
     minimal opportunity for fraud.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to applications filed after 270 days 
     after the date of the enactment of this Act.
       (c) Study Regarding Applications for Replacement Social 
     Security Cards.--
       (1) In general.--As soon as practicable after the date of 
     the enactment of this Act, the Commissioner of Social 
     Security shall undertake a study to test the feasibility and 
     cost effectiveness of verifying all identification documents 
     submitted by an applicant for a replacement social security 
     card. As part of such study, the Commissioner shall determine 
     the feasibility of, and the costs associated with, the 
     development of appropriate electronic processes for third 
     party verification of any such identification documents which 
     are issued by agencies and instrumentalities of the Federal 
     Government and of the States (and political subdivisions 
     thereof).
       (2) Report.--Not later than 2 years after the date of the 
     enactment of this Act, the Commissioner shall report to the 
     Committee on Ways and Means of the House of Representatives 
     and the Committee on Finance of the Senate regarding the 
     results of the study undertaken under paragraph (1). Such 
     report shall contain such recommendations for legislative 
     changes as the Commissioner considers necessary to implement 
     needed improvements in the process for verifying 
     identification documents submitted by applicants for 
     replacement social security cards.

     SEC. 202. ENUMERATION AT BIRTH.

       (a) Improvement of Application Process.--
       (1) In general.--As soon as practicable after the date of 
     the enactment of this Act, the Commissioner of Social 
     Security shall undertake to make improvements to the 
     enumeration at birth program for the issuance of social 
     security account numbers

[[Page S9229]]

     to newborns. Such improvements shall be designed to prevent--
       (A) the assignment of social security account numbers to 
     unnamed children;
       (B) the issuance of more than 1 social security account 
     number to the same child; and
       (C) other opportunities for fraudulently obtaining a social 
     security account number.
       (2) Report to the congress.--Not later than 1 year after 
     the date of the enactment of this Act, the Commissioner shall 
     transmit to each House of the Congress a report specifying in 
     detail the extent to which the improvements required under 
     paragraph (1) have been made.
       (b) Study Regarding Process for Enumeration at Birth.--
       (1) In general.--As soon as practicable after the date of 
     the enactment of this Act, the Commissioner of Social 
     Security shall undertake a study to determine the most 
     efficient options for ensuring the integrity of the process 
     for enumeration at birth. Such study shall include an 
     examination of available methods for reconciling hospital 
     birth records with birth registrations submitted to agencies 
     of States and political subdivisions thereof and with 
     information provided to the Commissioner as part of the 
     process for enumeration at birth.
       (2) Report.--Not later than 18 months after the date of the 
     enactment of this Act, the Commissioner shall report to the 
     Committee on Ways and Means of the House of Representatives 
     and the Committee on Finance of the Senate regarding the 
     results of the study undertaken under paragraph (1). Such 
     report shall contain such recommendations for legislative 
     changes as the Commissioner considers necessary to implement 
     needed improvements in the process for enumeration at birth.

     SEC. 203. STUDY RELATING TO USE OF PHOTOGRAPHIC 
                   IDENTIFICATION IN CONNECTION WITH APPLICATIONS 
                   FOR BENEFITS, SOCIAL SECURITY ACCOUNT NUMBERS, 
                   AND SOCIAL SECURITY CARDS.

       (a) In General.--As soon as practicable after the date of 
     the enactment of this Act, the Commissioner of Social 
     Security shall undertake a study to--
       (1) determine the best method of requiring and obtaining 
     photographic identification of applicants for old-age, 
     survivors, and disability insurance benefits under title II 
     of the Social Security Act, for a social security account 
     number, or for a replacement social security card, and of 
     providing for reasonable exceptions to any requirement for 
     photographic identification of such applicants that may be 
     necessary to promote efficient and effective administration 
     of this title, and
       (2) evaluate the benefits and costs of instituting such a 
     requirement for photographic identification, including the 
     degree to which the security and integrity of the old-age, 
     survivors, and disability insurance program would be 
     enhanced.
       (b) Report.--Not later than 18 months after the date of the 
     enactment of this Act, the Commissioner shall report to the 
     Committee on Ways and Means of the House of Representatives 
     and the Committee on Finance of the Senate regarding the 
     results of the study undertaken under paragraph (1). Such 
     report shall contain such recommendations for legislative 
     changes as the Commissioner considers necessary relating to 
     requirements for photographic identification of applicants 
     described in subsection (a).

     SEC. 204. RESTRICTIONS ON ISSUANCE OF MULTIPLE REPLACEMENT 
                   SOCIAL SECURITY CARDS.

       (a) In General.--Section 205(c)(2)(G) of the Social 
     Security Act (42 U.S.C. 405(c)(2)(G)) is amended by adding at 
     the end the following new sentence: ``The Commissioner shall 
     restrict the issuance of multiple replacement social security 
     cards to any individual to 3 per year and to 10 for the life 
     of the individual, except in any case in which the 
     Commissioner determines there is minimal opportunity for 
     fraud.''.
       (b) Regulations and Effective Date.--The Commissioner of 
     Social Security shall issue regulations under the amendment 
     made by subsection (a) not later than 1 year after the date 
     of the enactment of this Act. Systems controls developed by 
     the Commissioner pursuant to such amendment shall take effect 
     upon the earlier of the issuance of such regulations or the 
     end of such 1-year period.

     SEC. 205. STUDY RELATING TO MODIFICATION OF THE SOCIAL 
                   SECURITY ACCOUNT NUMBERING SYSTEM TO SHOW WORK 
                   AUTHORIZATION STATUS.

       (a) In General.--As soon as practicable after the date of 
     the enactment of this Act, the Commissioner of Social 
     Security, in consultation with the Secretary of Homeland 
     Security, shall undertake a study to examine the best method 
     of modifying the social security account number assigned to 
     individuals who--
       (1) are not citizens of the United States,
       (2) have not been admitted for permanent residence, and
       (3) are not authorized by the Secretary of Homeland 
     Security to work in the United States, or are so authorized 
     subject to one or more restrictions,

     so as to include an indication of such lack of authorization 
     to work or such restrictions on such an authorization.
       (b) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Commissioner shall report to the 
     Committee on Ways and Means of the House of Representatives 
     and the Committee on Finance of the Senate regarding the 
     results of the study undertaken under this section. Such 
     report shall include the Commissioner's recommendations of 
     feasible options for modifying the social security account 
     number in the manner described in subsection (a).

                         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 (7), by adding after subparagraph (C) the 
     following new subparagraph:
       ``(D) with intent to deceive, discloses, sells, or 
     transfers his own social security account number, assigned to 
     him by the Commissioner of Social Security (in the exercise 
     of the Commissioner's authority under section 205(c)(2) to 
     establish and maintain records), to any person; or'';
       (2) in paragraph (8), by adding ``or'' at the end; and
       (3) by inserting after paragraph (8) the following new 
     paragraphs:
       ``(9) without lawful authority, 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), willfully acts or fails to act so as to 
     cause a violation of section 205(c)(2)(C)(xi); or
       ``(11) 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), (xiii), or (xiv) of section 205(c)(2)(C); or
       ``(12) 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 
     (xiv) of section 205(c)(2)(C);''.
       (b) Effective Dates.--Paragraphs (7)(D) and (9) of section 
     208(a) 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), 
     (11), and (12) 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) without lawful authority, 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;

[[Page S9230]]

       ``(I) with intent to deceive, discloses, sells, or 
     transfers his own social security account number, assigned to 
     him by the Commissioner of Social Security under section 
     205(c)(2)(B), to any person;
       ``(J) 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, willfully acts or fails to act so as 
     to cause a violation of clause (vi)(II), (x), (xi), (xii), 
     (xiii), or (xiv) of section 205(c)(2)(C);
       ``(K) 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 
     (xiv) of section 205(c)(2)(C);
       ``(L) violates section 208A (relating to prohibition of the 
     sale, purchase, or display of the social security account 
     number in the private sector); or
       ``(M) violates section 208B (relating to fraud by social 
     security administration employees);

     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 
     (J), (K), (L), and (M) 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. CRIMINAL PENALTIES FOR EMPLOYEES OF THE SOCIAL 
                   SECURITY ADMINISTRATION WHO KNOWINGLY AND 
                   FRAUDULENTLY ISSUE SOCIAL SECURITY CARDS OR 
                   SOCIAL SECURITY ACCOUNT NUMBERS.

       (a) In General.--Title II of the Social Security Act (as 
     amended by the preceding provisions of this Act) is amended 
     further by inserting after section 208A the following new 
     section:


          ``Fraud by Social Security Administration employees

       ``Sec. 208B. (a) Whoever is an employee of the Social 
     Security Administration and knowingly and fraudulently sells 
     or transfers one or more social security account numbers or 
     social security cards shall be guilty of a felony and upon 
     conviction thereof shall be fined under title 18, United 
     States Code, imprisoned as provided in subsection (b), or 
     both.
       ``(b) Imprisonment for a violation described in subsection 
     (a) shall be for--
       ``(1) not less than 1 year and up to 5 years, in the case 
     of an employee of the Social Security Administration who has 
     fraudulently sold or transferred not more than 50 social 
     security account numbers or social security cards,
       ``(2) not less than 5 years and up to 10 years, in the case 
     of an employee of the Social Security Administration who has 
     fraudulently sold or transferred more than 50, but not more 
     than 100, social security account numbers or social security 
     cards, or
       ``(3) not less than 10 years and up to 20 years, in the 
     case of an employee of the Social Security Administration who 
     has fraudulently sold or transferred more than 100 social 
     security account numbers or social security cards.
       ``(c) For purposes of this section--
       ``(1) The term `social security employee' means any State 
     employee of a State disability determination service, any 
     officer, employee, or contractor of the Social Security 
     Administration, any employee of such a contractor, or any 
     volunteer providing services or assistance in any facility of 
     the Social Security Administration.
       ``(2) The term `social security account number' means a 
     social security account number assigned by the Commissioner 
     of Social Security under section 205(c)(2)(B) or another 
     number that has not been so assigned but is purported to have 
     been so assigned.
       ``(3) The term `social security card' means a card issued 
     by the Commissioner of Social Security under section 
     205(c)(2)(G), another card which has not been so issued but 
     is purported to have been so issued, and banknote paper of 
     the type described in section 205(c)(2)(G) prepared for the 
     entry of social security account numbers, whether fully 
     completed or not.
       ``(d) Any employee of the Social Security Administration 
     who attempts or conspires to commit any violation of this 
     section shall be subject to the same penalties as those 
     prescribed for the violation the commission of which was the 
     object of the attempt or conspiracy.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply with respect to violations occurring on or after 
     the date of the enactment of this Act.

     SEC. 304. ENHANCED PENALTIES IN CASES OF TERRORISM, DRUG 
                   TRAFFICKING, CRIMES OF VIOLENCE, OR PRIOR 
                   OFFENSES.

       (a) Amendments to Title II.--Section 208 of the Social 
     Security Act (42 U.S.C. 408) is amended--
       (1) in subsection (a), by striking ``shall be fined'' and 
     all that follows and inserting the following: ``shall be 
     fined, imprisoned, or both, as provided in subsection (b).'';
       (2) by redesignating subsections (b), (c), and (d) as 
     subsections (c), (d), and (e), respectively; and
       (3) by inserting after subsection (a) the following new 
     subsection:
       ``(b) A person convicted of a violation described in 
     subsection (a) shall be--
       ``(1) fined under title 18, United States Code, or 
     imprisoned for not more than 5 years, or both, in the case of 
     an initial violation, subject to paragraphs (3) and (4),
       ``(2) fined under title 18, United States Code, or 
     imprisoned for not more than 10 years, or both, in the case 
     of a violation which occurs after a prior conviction for 
     another offense under subsection (a) becomes final, subject 
     to paragraphs (3) and (4),
       ``(3) fined under title 18, United States Code, or 
     imprisoned for not more than 20 years, in the case of a 
     violation which is committed to facilitate a drug trafficking 
     crime (as defined in section 929(a)(2) of title 18, United 
     States Code) or in connection with a crime of violence (as 
     defined in section 924(c)(3) of title 18, United States 
     Code), subject to paragraph (4), and
       ``(4) fined under title 18, United States Code, or 
     imprisoned for not more than 25 years, in the case of a 
     violation which is committed to facilitate an act of 
     international or domestic terrorism (as defined in paragraphs 
     (1) and (5), respectively, of section 2331 of title 18, 
     United States Code).''; and
       (4) in subsection (c) (as redesignated by paragraph (2))--
       (A) by striking the first sentence; and
       (B) in the second sentence, by striking ``any violation 
     described in the preceding sentence, including a first such 
     violation'' and inserting ``a violation of any of the 
     provisions of this section committed by any person or other 
     entity in the role of such person or entity as, or in 
     applying to become, a certified payee under section 205(j) on 
     behalf of another individual (other than such person's 
     spouse)''.
       (b) Amendments to Title VIII.--Section 811 of such Act (42 
     U.S.C. 1011) is amended--
       (1) in subsection (a), by striking ``shall be fined'' and 
     all that follows and inserting ``shall be fined, imprisoned, 
     or both, as provided in subsection (b).'';
       (2) by redesignating subsection (b) as subsection (c); and
       (3) by inserting after subsection (a) the following new 
     subsection:
       ``(b) Punishment.--A person convicted of a violation 
     described in subsection (a) shall be--
       ``(1) fined under title 18, United States Code, or 
     imprisoned for not more than 5 years, or both, in the case of 
     an initial violation, subject to paragraphs (3) and (4),
       ``(2) fined under title 18, United States Code, or 
     imprisoned for not more than 10 years, or both, in the case 
     of a violation which occurs after a prior conviction for 
     another offense under subsection (a) becomes final, subject 
     to paragraphs (3) and (4),
       ``(3) fined under title 18, United States Code, or 
     imprisoned for not more than 20 years, in the case of a 
     violation which is committed to facilitate a drug trafficking 
     crime (as defined in section 929(a)(2) of title 18, United 
     States Code) or in connection with a crime of violence (as 
     defined in section 924(c)(3) of title 18, United States 
     Code), subject to paragraph (4), and
       ``(4) fined under title 18, United States Code, or 
     imprisoned for not more than 25 years, in the case of a 
     violation which is committed to facilitate an act of 
     international or domestic terrorism (as defined in paragraphs 
     (1) and (5), respectively, of section 2331 of title 18, 
     United States Code).''.
       (c) Amendments to Title XVI.--Section 1632 of such Act (42 
     U.S.C. 1383a) is amended--
       (1) in subsection (a), by striking ``shall be fined'' and 
     all that follows and inserting ``shall be fined, imprisoned, 
     or both, as provided in subsection (b).'';
       (2) by redesignating subsections (b) and (c) as subsections 
     (c) and (d), respectively; and
       (3) by inserting after subsection (a) the following new 
     subsection:
       ``(b) A person convicted of a violation described in 
     subsection (a) shall be--
       ``(1) fined under title 18, United States Code, or 
     imprisoned for not more than 5 years, or both, in the case of 
     an initial violation, subject to paragraphs (3) and (4),
       ``(2) fined under title 18, United States Code, or 
     imprisoned for not more than 10 years, or both, in the case 
     of a violation which occurs after a prior conviction for 
     another offense under subsection (a) becomes final, subject 
     to paragraphs (3) and (4),
       ``(3) fined under title 18, United States Code, or 
     imprisoned for not more than 20 years, in the case of a 
     violation which is committed to facilitate a drug trafficking 
     crime (as defined in section 929(a)(2) of title 18, United 
     States Code) or in connection with a crime of violence (as 
     defined in section 924(c)(3) of title 18, United States 
     Code), subject to paragraph (4), and
       ``(4) fined under title 18, United States Code, or 
     imprisoned for not more than 25 years, in the case of a 
     violation which is committed to facilitate an act of 
     international or domestic terrorism (as defined in paragraphs 
     (1) and (5), respectively, of section 2331 of title 18, 
     United States Code).''.
       (d) Effective Date.--The amendments made by this section 
     shall apply with respect

[[Page S9231]]

     to violations occurring after the date of the enactment of 
     this Act.

                          ____________________