[Congressional Record Volume 157, Number 86 (Wednesday, June 15, 2011)]
[Senate]
[Pages S3817-S3821]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
By Mrs. FEINSTEIN (for herself, Ms. Snowe, and Mr. Leahy):
S. 1199. 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; to the Committee on the Judiciary.
Mrs. FEINSTEIN. Mr. President, I am pleased to introduce, together
with Senator Snowe, legislation today to protect one of Americans' most
valuable but vulnerable assets: Social Security numbers.
The Protecting the Privacy of Social Security Numbers Act would
protect personal privacy and reduce identity theft by eliminating the
unnecessary use and display of Social Security numbers.
Since the 106th Congress, I have worked to safeguard Social Security
numbers. I believe that the widespread display and use of these numbers
poses a significant, and entirely preventable, threat to Americans'
personal privacy.
In 1935, Congress authorized the Social Security Administration to
issue Social Security numbers as part of the Social Security program.
Since that time, Social Security numbers have become the best known and
easiest way to identify individuals in the United States.
Use of these numbers has expanded well beyond their original purpose.
Social Security numbers are now used for everything from credit checks
to rental agreements to employment verifications, among other purposes.
They can be found in privately held databases and on public records,
including marriage licenses, professional certifications, and countless
other public documents, many of which are available on the Internet.
Once accessed, the numbers act like keys, allowing thieves to open
credit card and bank accounts and even begin applying for government
benefits.
According to the Federal Trade Commission, between 8 and 10 million
Americans have their identities stolen by such thieves each year, at a
combined cost of billions of dollars.
What's worse, victims often do not realize that a theft has occurred
until much later, when they learn that their credit has been destroyed
by unpaid debt on fraudulently opened accounts.
One thief stole a retired Army Captain's military identification card
and used his Social Security number, listed on the card, to go on a 6-
month, $260,000 shopping spree. By the time the Army Captain realized
what had happened, the thief had opened more than 60 fraudulent
accounts.
A single mother of two went to file her taxes and learned that a
fraudulent return had already been filed in her name by someone else, a
thief who wanted her refund check.
A former pro-football player received a phone call notifying him that
a $1 million home mortgage loan had been approved in his name even
though he had never applied for such a loan.
Identity theft is serious. Once an individual's identity is stolen,
people are often subjected to countless hours and costs attempting to
regain their good name and credit. In 2004, victims spent an average of
300 hours recovering from the crime. The crime disrupts lives and can
destroy finances.
It also hurts American businesses. A 2006 online survey by the
Business Software Alliance and Harris Interactive found that nearly 30
percent of adults decided to shop online less or not at all during the
holiday season because of fears about identity theft.
When people's identities are stolen, they often do not know how the
thieves obtained their personal information. Social security numbers
and other key identifying data are displayed and used in such a
widespread manner that individuals could not successfully restrict
access themselves.
Limitations on the display of Social Security numbers are critically
needed.
In the last Congress, Senator Judd Gregg of New Hampshire and I
worked together to pass a bill to prevent Federal, State, and local
entities from printing social security numbers on government checks and
to prohibit government entities from employing prisoners in jobs like
data entry that gave them access to people's social security numbers.
But comprehensive legislation is still needed.
The U.S. Government Accountability Office conducted studies of this
problem in 2002 and 2007. Both times--in studies entitled Social
Security Numbers Are Widely Used by Government and Could Be Better
Protected and Social Security numbers: Use Is Widespread and Could Be
Improved, the GAO concluded that current protections are insufficient
and that serious vulnerabilities remain.
The Protecting the Privacy of Social Security Numbers Act would
require government agencies and businesses to do more to protect
Americans' Social Security numbers. The bill would stop the sale or
display of a person's Social Security number without his or her express
consent; prevent Federal, State, and local governments from displaying
Social Security numbers on public records posted on the Internet; limit
the circumstances in which businesses could ask a customer for his or
her Social Security number; commission a study by the Attorney General
regarding the current uses of Social Security numbers and the impact on
privacy and data security; and institute criminal and civil penalties
for misuse of Social Security numbers.
I believe this legislation could play a critical role in halting the
growing epidemic of identity theft that has been plaguing America and
its citizens.
As President George W. Bush's Identity Theft Task Force reported to
us now three years ago, ``[i]dentity theft depends on access to . . .
data. Reducing the opportunities for thieves to get the data is
critical to fighting the crime.''
Every agency to study this problem has agreed that the problem will
continue to grow over time and that action is needed.
I urge my colleagues to support the Protecting the Privacy of Social
Security Numbers Act.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 1199
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 ``Protecting
the Privacy of Social Security Numbers 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. Limits on personal disclosure of a Social Security number for
consumer transactions.
Sec. 7. Extension of civil monetary penalties for misuse of a Social
Security number.
Sec. 8. Criminal penalties for the misuse of a Social Security number.
Sec. 9. Civil actions and civil penalties.
Sec. 10. 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.
[[Page S3818]]
(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 1028A the
following:
``Sec. 1028B. Prohibition of the display, sale, or purchase
of Social Security numbers
``(a) Definitions.--In this section:
``(1) Display.--The term `display' means to intentionally
communicate or otherwise make available (on the Internet or
in any other manner) to the general public an individual's
Social Security number.
``(2) Person.--The term `person' means any individual,
partnership, corporation, trust, estate, cooperative,
association, or any other entity.
``(3) Purchase.--The term `purchase' means providing
directly or indirectly, anything of value in exchange for a
Social Security number.
``(4) Sale.--The term `sale' means obtaining, directly or
indirectly, anything of value in exchange for a Social
Security number.
``(5) State.--The term `State' means any State of the
United States, the District of Columbia, Puerto Rico, the
Northern Mariana Islands, the United States Virgin Islands,
Guam, American Samoa, and any territory or possession of the
United States.
``(b) Limitation on Display.--Except as provided in section
1028C, 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:
``1028B. 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, the impact of such uses on privacy and data
security, 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 1028B the following:
``Sec. 1028C. 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 1028B shall not apply to a public
record.
``(c) Public Records on the Internet or in an Electronic
Medium.--
``(1) In general.--Section 1028B 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 1028B 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 1028B 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 1028B 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.
[[Page S3819]]
``(d) Harvested Social Security Numbers.--Section 1028B
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 1028B 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 1028B 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 1028B 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 1028B.
``(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 1028B 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 1028B the following:
``1028C. 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 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 1028C(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 1028B(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 1028B(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, procedures, and
technologies 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.
(F) The impact of such uses on privacy.
SEC. 6. 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 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
[[Page S3820]]
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. 7. 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
subsection (b), shall apply with respect to violations of
that section occurring on or after the effective date
described in section 3(c).
(f) Repeal.--Section 201 of the Social Security Protection
Act of 2004 is repealed.
SEC. 8. 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
[[Page S3821]]
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 1028B of title 18, United States Code, knowingly and
willfully displays, sells, or purchases (as those terms are
defined in section 1028B(a) of title 18, United States Code)
any individual's Social Security account number without
having met the prerequisites for consent under section
1028B(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. 9. 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. 10. 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.
______