[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4611 Introduced in House (IH)]
106th CONGRESS
2d Session
H. R. 4611
To strengthen the authority of the Federal Government to protect
individuals from certain acts and practices in the sale and purchase of
Social Security numbers and Social Security account numbers, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 8, 2000
Mr. Markey introduced the following bill; which was referred to the
Committee on Commerce, and in addition to the Committee on Ways and
Means, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To strengthen the authority of the Federal Government to protect
individuals from certain acts and practices in the sale and purchase of
Social Security numbers and Social Security account numbers, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Social Security Number Protection
Act of 2000''.
SEC. 2. FINDINGS.
The Congress makes the following findings:
(1) The inappropriate sale or purchase of Social Security
numbers is a significant factor in a growing range of illegal
activities, including fraud, identity theft, and, in some
cases, stalking and other violent crimes.
(2) While financial institutions, health care providers,
and other entities have often used Social Security numbers to
confirm the identity of an individual, the sale or purchase of
these numbers often facilitates the commission of criminal
activities, 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 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 persons to exempt themselves from
those requirements, it is appropriate for the Government to
take steps to stem the abuse of this system.
(4) A Social Security number is simply a sequence of
numbers. In no meaningful sense can the number itself impart
knowledge or ideas. Persons do not sell or transfer such
numbers in order to convey any particularized message, nor to
express to the purchaser any ideas, knowledge, or thoughts.
(5) A Social Security number does not contain, reflect, or
convey any publicly significant information or concern any
public issue. The sale of such numbers in no way facilitates
uninhibited, robust and wide-open public debate; and
restrictions on such sale would not affect public debate.
(6) No one should seek to profit from the sale 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.
(7) Consequently, Congress should enact legislation that
will offer individuals assigned such numbers necessary
protection from the sale and purchase of Social Security
numbers in circumstances that might facilitate unlawful conduct
or that might otherwise likely result in unfair and deceptive
practices.
SEC. 3. DEFINITIONS.
In this Act:
(1) Commission.--The term ``Commission'' means the Federal
Trade Commission.
(2) Person.--The term ``person'' means any individual,
partnership, corporation, trust, estate, cooperative,
association, or any other entity.
(3) Sale.--The term ``sale'' means obtaining, directly or
indirectly, anything of value in exchange for a Social Security
number or Social Security account number. Such term does not
include the submission of such numbers as part of the process
for applying for any type of Government benefit or programs
(such as grant or loan applications or welfare or other public
assistance programs). Such term also does not include transfers
of such numbers as part of a data matching program under the
Computer Matching and Privacy Protection Act.
(4) Purchase.--The term ``purchase'' means providing
directly or indirectly, anything of value in exchange for a
Social Security number or Social Security account number. Such
term does not include the submission of such numbers as part of
the process for applying for any type of Government benefit or
programs (such as grant or loan applications or welfare or
other public assistance programs). Such term also does not
include transfers of such numbers as part of a data matching
program under the Computer Matching and Privacy Protection Act.
(5) Social security number; social security account
number.--The terms ``Social Security number'' and ``Social
Security account number'' have the meaning given those terms in
section 208 of the Social Security Act (42 U.S.C. 408).
(6) 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.
SEC. 4. REGULATION OF THE SALE AND PURCHASE OF SOCIAL SECURITY NUMBERS
AND SOCIAL SECURITY ACCOUNT NUMBERS.
(a) Prohibition.--It shall be unlawful for any person to sell or
purchase a Social Security number or Social Security account number in
a manner that violates a regulation promulgated by the Commission under
subsection (b) of this section.
(b) Regulations.--
(1) Restrictions authorized.--The Commission, after
consultation with the Commissioner of Social Security, the
Department of Justice, and other agencies as the Commission
deems appropriate, shall promulgate regulations restricting the
sale and purchase of Social Security numbers and Social
Security account numbers and any unfair or deceptive acts or
practices in connection with the sale and purchase of Social
Security numbers and Social Security account numbers.
(2) Limitations on restrictions.--In promulgating such
regulations, the Commission shall impose restrictions and
conditions on the sale and purchase of Social Security numbers
and Social Security account numbers that are no broader than
necessary--
(A) to provide reasonable assurance that Social
Security numbers and Social Security account numbers
will not be used to commit or facilitate fraud,
deception, or crime; and
(B) to prevent an undue risk of bodily, emotional,
or financial harm to individuals.
For purposes of subparagraph (B), the Commission shall consider
the nature, likelihood and severity of the anticipated harm;
the nature, likelihood and extent of any benefits that could be
realized from the sale or purchase of the numbers; and any
other relevant factors.
(3) Exceptions.--The regulations promulgated pursuant to
paragraph (1) shall include exceptions which permit the sale
and purchase of Social Security numbers and Social Security
account numbers--
(A) to the extent necessary for law enforcement or
national security purposes;
(B) to the extent necessary for public health
purposes;
(C) to the extent necessary in emergency situations
to protect the health or safety of 1 or more
individuals;
(D) to the extent necessary for research conducted
for the purpose of advancing public knowledge, on the
condition that the researcher provides adequate
assurances that--
(i) the Social Security numbers or 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
to 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;
(E) to the extent consistent with an individual's
voluntary and affirmative written consent to the sale
or purchase of a Social Security number or Social
Security account number that has been assigned to that
individual; and
(F) under other appropriate circumstances as the
Commission may determine and as are consistent with the
findings in section 2 and the principles in paragraph
(2).
(c) Rulemaking.--
(1) Deadline for action.--Not later than 1 year after the
date of enactment of this Act, the Commission shall promulgate
the regulations under subsection (b) of this section, in
accordance with section 553 of title 5, United States Code.
(2) Effective dates.--Subsection (a), the regulations
promulgated under subsection (b), and section 5 shall take
effect 30 days after the date on which the final regulations
issued under this section are published in the Federal
Register.
(d) Enforcement.--Any violation of a regulation promulgated under
subsection (b) of this section shall be treated as a violation of a
regulation under section 18(a)(1)(B) of the Federal Trade Commission
Act (15 U.S.C. 57a(a)(1)(B)) regarding unfair or deceptive acts or
practices.
(e) Administration and Applicability of Act.--
(1) The commission.--The Commission shall prevent any
person from violating this section, and any regulation
promulgated thereunder, in the same manner, by the same means,
and with the same jurisdiction, powers, and duties as though
all applicable terms and provisions of the Federal Trade
Commission Act (15 U.S.C. 41 et seq.) were incorporated into
and made a part of this Act. Any person who violates such
regulation shall be subject to the penalties and entitled to
the privileges and immunities provided in the Federal Trade
Commission Act (15 U.S.C. 41 et seq.) as though all applicable
terms and provisions of the Federal Trade Commission Act (15
U.S.C. 41 et seq.) were incorporated into and made a part of
this Act. Nothing contained in this Act shall be construed to
limit the authority of the Commission under any other provision
of law.
(2) Actions by states.--
(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 an act or
practice that violates any regulation of the Commission
promulgated under subsection (b), 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 act or practice;
(ii) enforce compliance with the
regulation;
(iii) obtain damages, restitution, or other
compensation on behalf of residents of the
State; or
(iv) obtain such other legal and equitable
relief as the district court may consider to be
appropriate.
Before filing an action under this subsection, the
attorney general of the State involved shall provide to
the Commission and to the Attorney General a written
notice of that action and a copy of the complaint for
that action. If the State attorney general determines
that it is not feasible to provide the notice described
in this subparagraph before the filing of the action,
the State attorney general shall provide the written
notice and the copy of the complaint to the Commission
and to the Attorney General as soon after the filing of
the complaint as practicable.
(B) Commission and attorney general authority.--On
receiving notice under subparagraph (A), the Commission
and the Attorney General each shall have the right--
(i) to move to stay the action, pending the
final disposition of a pending Federal matter
as described in subparagraph (C);
(ii) to intervene in an action under clause
(i);
(iii) upon so intervening, to be heard on
all matters arising therein; and
(iv) to file petitions for appeal.
(C) Pending criminal proceedings.--If the Attorney
General has instituted a criminal proceeding or the
Federal Trade Commission has instituted a civil action
for a violation of this Act or any regulations
thereunder, no State may, during the pendency of such
proceeding or action, bring an action under this
section against any defendant named in the criminal
proceeding or civil action for any violation of this
section that is alleged in that proceeding or action.
(D) Rule of construction.--For purposes of bringing
any civil action under subparagraph (A), nothing in
this Act shall be construed to prevent an attorney
general of a State from exercising the powers conferred
on the attorney general by the laws of that State to
conduct investigations, administer oaths and
affirmations, or compel the attendance of witnesses or
the production of documentary and other evidence.
(E) Venue; service of process.--Any action brought
under this section may be brought in any district court
of the United States that meets applicable requirements
relating to venue under section 1391 of title 28,
United States Code. In an action brought under this
section, process may be served in any district in which
the defendant is an inhabitant or may be found.
SEC. 5. CRIMINAL SANCTIONS.
Section 208 of the Social Security Act (42 U.S.C. 408) is amended--
(1) in subsection (a)(8), by striking ``or'' and ``, or
knowingly sells or purchases'' after ``the disclosure of''; and
(2) in subsection (c)--
(A) by numbering the paragraph therein as (1);
(B) by inserting thereafter a new paragraph (2) as
follows:
``(2) For purposes of subsection (a)(8) of this section, the term
`sells' means obtains, directly or indirectly, anything of value in
exchange for a Social Security number or Social Security account
number. Such term does not include the submission of such numbers as
part of the process for applying for any type of Government benefit or
programs (such as grant or loan applications or welfare or other public
assistance programs). Such term also does not include transfers of such
numbers as part of a data matching program under the Computer Matching
and Privacy Protection Act.''; and
(C) by inserting thereafter a new paragraph (3) as
follows:
``(3) For purposes of subsection (a)(8) of this section, the term
`purchases' means provides, directly or indirectly, anything of value
in exchange for a Social Security number or Social Security account
number. Such term does not include the submission of such numbers as
part of the process for applying for any type of Government benefit or
programs (such as grant or loan applications or welfare or other public
assistance programs). Such term also does not include transfers of such
numbers as part of a data matching program under the Computer Matching
and Privacy Protection Act.''.
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