S 2699 IS, Social Security Number Protection Act of 2000.
Re: banning certain sales of Social Security Numbers.
Sponsor: Sen. Dianne Feinstein (D-CA).
Date introduced: June 8, 2000.
Source: Library of Congress.

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 SENATE OF THE UNITED STATES

June 8, 2000

Mrs. FEINSTEIN introduced the following bill; which was read twice and referred to the Committee on Finance

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.

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 individuals to exempt themselves from those requirements, it is appropriate for the Federal 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-

(A) IN GENERAL- The term `sale' means obtaining, directly or indirectly, anything of value in exchange for a social security number or social security account number.

(B) EXCLUSIONS- Such term does not include--

(i) the submission of such a number as part of the process for applying for any type of government benefit or program (such as a grant or loan application or a welfare or other public assistance program); or

(ii) transfers of such a number as part of a data matching program under the Computer Matching and Privacy Protection Act of 1988 (5 U.S.C. 552a note; Public Law 100-503; 102 Stat. 2507).

(4) PURCHASE-

(A) IN GENERAL- The term `purchase' means providing directly or indirectly, anything of value in exchange for a social security number or social security account number.

(B) EXCLUSIONS- Such term does not include--

(i) the submission of such a number as part of the process for applying for any type of government benefit or program (such as a grant or loan application or a welfare or other public assistance program); or

(ii) transfers of such a number as part of a data matching program under the Computer Matching and Privacy Protection Act of 1988 (5 U.S.C. 552a note; Public Law 100-503; 102 Stat. 2507).

(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(c) of the Social Security Act (42 U.S.C. 408(c)).

(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 a social security account number in a manner that violates a regulation promulgated by the Commission under subsection (b).

(b) REGULATIONS-

(1) IN GENERAL- The Commission, after consultation with the Commissioner of Social Security, the Department of Justice, and other Federal 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) REQUIREMENTS-

(A) RESTRICTIONS AND CONDITIONS-

(i) IN GENERAL- 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--

(I) to provide reasonable assurances that social security numbers and social security account numbers will not be used to commit or facilitate fraud, deception, or crime; and

(II) to prevent an undue risk of bodily, emotional, or financial harm to an individual.

(ii) REQUIRED CONSIDERATIONS FOR PREVENTION OF UNDUE RISK- For purposes of clause (i)(II), the Commission shall consider--

(I) the nature, likelihood, and severity of the anticipated harm;

(II) the nature, likelihood, and extent of any benefits that could be realized from the sale or purchase of the numbers; and

(III) any other relevant factors.

(B) EXCEPTIONS- The regulations promulgated under this subsection shall include exceptions which permit the sale and purchase of social security numbers and social security account numbers--

(i) to the extent necessary for law enforcement or national security purposes;

(ii) to the extent necessary for public health purposes;

(iii) to the extent necessary in emergency situations to protect the health or safety of one or more individuals;

(iv) 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 individual;

(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;

(v) to the extent consistent with an individual's voluntary and affirmative written consent to the sale or purchase of a social security number or a social security account number that has been assigned to that individual; and

(vi) under other appropriate circumstances as the Commission may determine are consistent with the findings set forth in section 2 and the principles set forth in subparagraph (A).

(c) RULEMAKING-

(1) IN GENERAL- Not later than 1 year after the date of enactment of this Act, the Commission shall promulgate the regulations required under subsection (b) in accordance with section 553 of title 5, United States Code.

(2) EFFECTIVE DATE- Subsection (a) and the regulations promulgated under subsection (b) and section 208 of the Social Security Act (42 U.S.C. 408) (as amended by section 5) shall take effect 30 days after the date on which the final regulations issued under subsection (b) are published in the Federal Register.

(d) ENFORCEMENT- Any violation of a regulation promulgated under subsection (b) shall be treated in the same manner as a violation of a rule promulgated 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-

(A) IN GENERAL- 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.

(B) APPLICATION OF PENALTIES, PRIVILEGES, AND IMMUNITIES- Any person who violates such a 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.

(C) RULE OF CONSTRUCTION- 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) IN GENERAL- 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 paragraph, the Attorney General of the State involved shall provide to the Commission and to the Attorney General of the United States a written notice of that action and a copy of the complaint for that action. If the Attorney General of the State involved determines that it is not feasible to provide such notice and copy before the filing of the action, the Attorney General of such State shall provide the written notice and the copy of the complaint to the Commission and to the Attorney General of the United States as soon as practicable after the filing of the complaint.

(B) RIGHT TO INTERVENE- Upon receipt of a notice under subparagraph (A), the Commission and the Attorney General of the United States 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 the action that is the subject of the notice;

(iii) upon so intervening, to be heard on all matters arising under the action; and

(iv) to file petitions for appeal.

(C) PROHIBITION ON STATE ACTION- If the Attorney General has instituted a criminal proceeding or the Commission has instituted a civil action for a violation of this Act or of any regulations promulgated under this Act, 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 Act 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 that 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 UNDER THE SOCIAL SECURITY ACT.

Section 208 of the Social Security Act (42 U.S.C. 408) is amended--

(1) in subsection (a)(8), by striking `or compels the disclosure of' and inserting `, compels the disclosure of, or knowingly sells or purchases'; and

(2) in subsection (c)--

(A) by striking `Any' and inserting `(1) Any'; and

(B) by adding at the end the following new paragraph:

`(2)(A) For purposes of subsection (a)(8)--

`(i) the term `sells' means obtains, directly or indirectly, anything of value in exchange for a social security number or a social security account number; and

`(ii) the term `purchases' means provides, directly or indirectly, anything of value in exchange for a social security number or a social security account number.

`(B) Such terms do not include the submission of a social security number or a social security account number as part of the process for applying for any type of government benefit or program (such as a grant or loan application or a welfare or other public assistance program) or transfers of such a number as part of a data matching program under the Computer Matching and Privacy Protection Act of 1988 (5 U.S.C. 552a note; Public Law 100-503; 102 Stat. 2507).'.