[Federal Register Volume 64, Number 196 (Tuesday, October 12, 1999)]
[Proposed Rules]
[Pages 55217-55218]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-26500]


-----------------------------------------------------------------------

SOCIAL SECURITY ADMINISTRATION

20 CFR Part 422

[Regulations No. 22]
RIN 0960-AF05


Assignment of Social Security Numbers (SSN) for Nonwork Purposes

AGENCY: Social Security Administration (SSA).

ACTION: Advance notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: SSA is providing advance notice of proposed rulemaking 
regarding when we will assign an SSN to an alien who is legally in the 
United States (U.S.) but not under authority of law permitting him or 
her to work in the U.S. We are considering a proposal to assign an SSN 
to an alien who is legally in the U.S. but does not have authorization 
to work only if there is a Federal statute or regulation that requires 
the alien to furnish an SSN to receive a federally-funded benefit or 
service. Under such a proposal, we would no longer assign an SSN to an 
alien if the alien's sole reason for applying for the SSN is to satisfy 
a State or local statute or regulation that requires an individual to 
furnish an SSN in order to receive a benefit or service. The intent of 
such a proposed change would be to reduce the possibility of fraud 
through misuse of SSNs.

DATES: To be sure that your comments are considered, we must receive 
them no later than December 13, 1999.

ADDRESSES: Comments should be submitted in writing to the Commissioner 
of Social Security, P.O. Box 17703, Baltimore, MD 21235-7703, sent by 
telefax to (410) 966-2830, sent by E-mail to ``[email protected],'' 
or delivered to the Office of Process and Innovation Management, Social 
Security Administration, L2109 West Low Rise Building, 6401 Security 
Boulevard, Baltimore, MD 21235-6401, between 8:00 A.M. and 4:30 P.M. on 
regular business days. Comments may be inspected during these hours by 
making arrangements with the contact person shown below.

Electronic Availability

    This document is also available as an electronic file on date of 
publication in the Federal Register on the Internet site for the 
Government Printing Office at http://www.access.gpo.gov/su__docs/aces/
acess140.html. It is also available on the Internet site for SSA (i.e., 
``SSA Online'') at http://www.ssa.gov.

FOR FURTHER INFORMATION CONTACT: Nancy Grace, Social Insurance 
Specialist, Office of Program Benefits, 3-R-1 Operations Building, 
Social Security Administration, 6401 Security Boulevard, Baltimore, MD 
21235-6401, (410) 965-7911 or TTY (410) 966-5609.

SUPPLEMENTARY INFORMATION:

Background

    In implementing section 205(c)(2)(B)(i) of the Social Security Act 
(the Act) and our regulations at 20 CFR 422.104 and 422.107, SSA 
currently assigns SSNs to aliens who:
     Are lawfully admitted to the U.S. either for permanent 
residence or under other authority of law permitting them to engage in 
employment in the U.S.; or
     Are legally in the U.S. but not under authority of law 
permitting them to engage in employment, but only for a valid nonwork 
purpose; or
     Cannot provide evidence of alien status, reside either in 
or outside the U.S. and are entitled to federally-funded benefits for 
which a Federal statute or regulation requires an SSN--for example, 
Social Security benefits, Supplemental Security Income benefits, 
Medicaid, or Temporary Assistance for Needy Families.
    Current SSA operational instructions permit SSA to assign an SSN 
for a nonwork purpose to aliens who:
     Cannot provide evidence of alien status, reside either in 
or outside the U.S., and are entitled to federally-funded benefits for 
which a Federal statute or regulation requires an SSN; or
     Are legally in the U.S., if there is a Federal, State, or 
local statute or regulation that requires them to provide SSNs to get a 
particular benefit or service.
    In the case of such a State or local statute or regulation, the 
statute or regulation must be in accordance with Federal law--that is, 
related to the administration of taxes, general public assistance, 
driver licensing, or motor vehicle registration (section 
205(c)(2)(C)(i) of the Act). If entitlement to a State or local benefit 
or service is the alien's sole reason for requesting an SSN, the alien 
must submit a letter from the applicable government entity. The letter 
must identify the alien, describe the State or local benefit/service 
for which an SSN is required, and state that the alien meets all 
requirements for the benefit/service except for providing an SSN.

[[Page 55218]]

    If SSA issues an SSN to an alien for a nonwork purpose, the SSN 
card is marked with a nonwork legend that reads ``NOT VALID FOR 
EMPLOYMENT.'' If earnings are reported to SSA on an SSN issued for a 
nonwork purpose, SSA provides the Immigration and Naturalization 
Service (INS) with information regarding the reported earnings pursuant 
to section 290(c)(2) of the Immigration and Nationality Act. We take 
great care to ensure that only eligible applicants are assigned SSNs 
and that SSA's records accurately reflect the basis for assignment of 
the SSNs.
    In July 1996, the Internal Revenue Service (IRS) began assigning 
Individual Taxpayer Identification Numbers for tax purposes to 
individuals who are not eligible for SSNs but who need to report income 
for tax purposes. This change in IRS policy eliminated one of the major 
reasons that aliens not authorized to work had sought SSNs for nonwork 
purposes. On October 22, 1998, SSA published final rules at 63 FR 56552 
that eliminated the need for an SSN for tax reporting purposes as a 
valid nonwork reason for assignment of an SSN.
    With the July 1996 IRS change, the remaining valid nonwork reasons 
for assignment of SSNs have generally been limited to eligibility for 
federally-funded benefits and use of the SSNs by State governments to 
administer statutes governing the issuing of driver's licenses and the 
registering of motor vehicles.
    Available SSA data suggest that some individuals assigned SSNs for 
nonwork purposes may be misusing those SSNs to work illegally in the 
U.S. Despite SSA's stringent procedures for ensuring that an alien 
without work authorization is assigned an SSN only when the need for a 
number can be documented, wage items have been reported to SSA on SSNs 
assigned for nonwork purposes. SSN misuse can impact all levels of 
government in the form of illegal employment in the U.S and fraudulent 
entitlement to Federal and State benefits and services.
    We have, with the assistance of the American Association of Motor 
Vehicle Administrators and the support of the Department of 
Transportation, combined efforts to assist States that currently 
require SSNs for driver licensing and motor vehicle registration 
purposes to develop alternative identifier systems to accommodate 
individuals not authorized to work in the U.S. We understand that most 
States have alternative identifier systems available, if not already in 
use.

Explanation of Change We Are Considering

    We are considering amending Sec. 422.104 of our regulations to 
define what we mean by a ``nonwork reason'' for assigning an SSN to an 
alien legally in the U.S. but not under authority of law permitting him 
or her to work in the U.S. According to the change we are considering, 
the only nonwork reason for assigning an SSN to such an alien would be 
if there is a Federal statute or regulation that requires the alien to 
have an SSN in order to receive a federally-funded benefit or service 
to which the alien has established entitlement. Under the change in our 
rules that we are considering, States and local entities would be able 
to continue to use an individual's SSN for purposes of providing 
benefits or services. However, SSA would not assign an SSN to an alien 
for a nonwork purpose solely to be able to receive a State or local 
benefit or service.

Request for Comments

    Before proceeding with any proposed regulatory change, and to 
maximize public participation early in the rulemaking process, we 
invite the public to comment on this change in rules we are 
considering. While we are interested in receiving comments from any 
source on any aspect of the issues, we are particularly interested in 
public comments on both the costs and benefits of this particular 
change. And, for State and local governments in particular, we are 
interested in answers to the following questions.
     Does the State or local government have any statutory 
requirements for any benefits or services, for which aliens in the U.S. 
without work authorization are eligible, which require the applicant to 
have an SSN; such as for the issuance of driver's licenses, the 
registration of motor vehicles, or receipt of health benefits or 
emergency general assistance benefits (not federally-funded)?
     If so, would your State be willing to consider identifying 
these individuals by use of an alternative identifier? How soon could 
you implement an alternative identification system?

    Dated: September 2, 1999.
Kenneth S. Apfel,
Commissioner of Social Security.
[FR Doc. 99-26500 Filed 10-8-99; 8:45 am]
BILLING CODE 4190-29-P