106-26 July 28, 2000
House Ways And Means Committee Subcommittee On Social Security
Marks Up H.R. 4857 "The Privacy And Identity Protection Act Of 2000"
On July 20, 2000, the House Ways and Means Committee,
Subcommittee on Social Security marked up H.R. 4857, the "The
Privacy and Identity Protection Act of 2000," and reported it out of
the subcommittee by a unanimous vote. The markup by the full
committee will not take place until after the August Congressional
Recess. Chairman Shaw did urge the other committees--Judiciary,
Labor and Commerce--to complete their work so the bill can move
forward. Below are descriptions of the SSA-related provisions in
H.R. 4857 as marked up by the Ways and Means Committee, Social
Security Subcommittee.
PROVISIONS RELATING TO THE SOCIAL SECURITY NUMBER
(SSN)
Section 101: Governmental Use and Treatment of Social Security
Numbers:
- Prohibits the sale of the SSN by Federal, State and local
governments
- Prohibits public access to SSNs possessed by Federal, State or
local governments by prohibiting their display on public
documents. "Display to the general public" is defined as the
intentional placing of the SSN or a derivative on an internet site
or material made available to the general public.
- Requires the General Accounting Office to study the use of the
SSN as a personal identification number by Federal, State or local
governments and how such use may be minimized.
- Prohibits Federal, State or local governments from using the
SSN on checks issued for payment.
- Provides that the Commissioner shall require independent
verification of birth records provided in support of
non-enumeration-at-birth applications for SSNs.
- Provides that the Commissioner and the Attorney General will
submit a report detailing the progress of the SSA and Immigration
and Naturalization Service in implementing a process for
enumeration at entry for aliens.
- Prohibits the appearance of SSNs on driver's licenses, motor
vehicle registrations or identification documents provided by
State Departments of Motor Vehicles.
- Prohibits the display of SSNs on an employee or military
identification card or tag as a personal identification number.
Section 102: Prohibiting the Sale of the Social Security Number
in the Private Sector (Jurisdiction of the Commerce Committee)
- Prohibits the sale or purchase of an SSN by any private person
that violates regulations promulgated by the Federal Trade
Commission (FTC). Violations of the regulations shall be enforced
under the Federal Trade Commission Act (15 U.S.C. 57a(a)(I)(B))
regarding unfair or deceptive acts or practices.
Section 103: Refusal to do Business Without Receipt of Social
Security Number Considered Unfair or Deceptive Act or Practice
(Jurisdiction of the Commerce Committee)
- Provides that it shall be an unfair or deceptive act or
practice in violation of the Federal Trade Commission Act for any
person to refuse to do business with an individual because the
individual will not provide his or her SSN.
Section 104: New Criminal Penalties for Misuse of the Social
Security Numbers
- Provides for criminal penalties of up to 5 years in prison and
a fine up to $250,000 for the sale of SSNs in violation of any
other Federal law.
- Provides for criminal penalties to offer, for a fee, to
acquire an additional SSN for an individual.
- Provides for criminal penalties for the violation of section
101 of this Act by an officer or employee of any Federal, State or
local agency.
SECTION 105: Extension of Civil Monetary Penalty Authority
- Amends section 1129 of the Act to include the: (1) omission of
a statement that the individual should have made to SSA, (2)
fraudulent application for, or misuse of, an SSN or Social
Security card, (3) counterfeiting of a Social Security card, (4)
use, disclosure or one who compels the disclosure of, or knowingly
sells or purchases the SSN of any person in violation of any
federal law, and (5) improper sale of SSNs by an officer or
employee of the Federal, State or local government. Provides for
civil money penalty of up to $5,000 for each violation.
SECTION 108: LAW ENFORCEMENT AUTHORITY FOR THE OFFICE OF THE
INSPECTOR GENERAL OF THE SOCIAL SECURITY ADMINISTRATION
- Codifies the current MOU between the Department of Justice and
the SSA/OIG. Would also allow the SSA/OIG Inspector General to
cross-designate State and local law enforcement officers to assist
SSA/OIG Special Agents in investigations as needed.
TITLE II - PROVISION RELATING TO REPRESENTATIVE
PAYEES
SECTION 201: AUTHORITY TO REISSUE BENEFITS MISUSED BY
ORGANIZATIONAL REPRESENTATIVE PAYEES
- Deletes the requirement that there be a finding of negligent
failure to investigate/monitor the representative payee and
requires the Commissioner to re-issue title II and title XVI
benefit payments whenever an individual payee representing 15 or
more beneficiaries, or an organizational payee, is found to have
misused a beneficiary's funds.
SECTION 202: OVERSIGHT OF NONGOVERNMENTAL ORGANIZATIONAL
REPRESENTATIVE PAYEES
- Requires non-governmental organizational representative payees
to be bonded and licensed, provided that licensing is available in
the State. Proof of bonding and licensing, as well as available
independent audits of the non-governmental organizational
representative payee must be submitted yearly. Requires the
Commissioner to provide for periodic onsite reviews for all
nongovernmental organizational representative payees and for
individual representative payees representing 15 or more
beneficiaries.
SECTION 203: DISQUALIFICATION FROM SERVICE AS REPRESENTATIVE
PAYEE UPON CONVICTION OF OFFENSES PUNISHABLE BY IMPRISONMENT FOR
MORE THAN ONE YEAR
- Expands the disqualification to include all individuals who
have been convicted of an offense punishable by imprisonment for
more than 1 year, unless the Commissioner determines that such
certification would be appropriate notwithstanding such a
conviction.
SECTION 204: FEE FORFEITURE IN CASE OF BENEFIT MISUSE BY
REPRESENTATIVE PAYEES.
- Require representative payees to forfeit the fee from the
beneficiary's benefits for the months during which the
representative payee misused the funds, as determined by the
Commissioner or a court of jurisdiction.
SECTION 205: LIABILITY OF REPRESENTATIVE PAYEES FOR MISUSE OF
BENEFITS
- Treats as an overpayment to the payee and subjects to current
overpayment recovery authorities any misused benefits by a
non-governmental representative payee. Any recovered benefits not
reissued to the beneficiary pursuant to section 201 of this
legislation would be reissued to the beneficiary or their
alternate representative payee.
SECTION 206: EXTENSION OF CIVIL MONETARY PENALTY AUTHORITY WITH
RESPECT TO REPRESENTATIVE PAYEES
- Expands section 1129 to include the imposition of civil
monetary penalties to offenses involving misuse of Social Security
or Supplemental Security Income benefits received by a
representative payee on behalf of another individual. Provides for
a civil money penalty of up to $5,000 for each violation.
Chairman Shaw offered an amendment in the nature of a
substitute for technical corrections to the bill. Congressman Matsui
offered an amendment that would prohibit any agency or
instrumentality of the Federal, State, or local governments from
employing or entering into a contract for the use of employment of
prisoners in any capacity that would allow them access to social
security numbers. Both passed by unanimous voice votes. The bill was
approved to go to the full committee for markup after the August
recess. |
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