(Sec. 101) Directs the Comptroller General to study and report to the Congress on: (1) the current usage by governmental agencies of the Social Security account numbers of individuals, and derivatives of such numbers, for identification purposes; and (2) the most effective means by which any such usage extending beyond the original purposes of the Social Security account number may be minimized.
Amends SSA title II to provide for independent verification of birth records provided in support of applications for Social Security account numbers.
Directs the Commissioner of Social Security and the Attorney General to report jointly to Congress on the progress of the Social Security Administration and the Immigration and Naturalization Service in implementing a process for enumeration at entry for aliens entering the United States.
Amends SSA title II to prohibit: (1) the appearance of Social Security account numbers on driver's licenses or motor vehicle registrations; and (2) the display of such account numbers, or any derivative, on any card or tag provided by governmental agencies to their employees for identification purposes.
(Sec. 102) Provides for the regulation and restriction of the sale and purchase of the Social Security account number in the private sector.
(Sec. 103) Amends SSA title II to subject criminal penalties the sale and purchase of Social Security account numbers.
(Sec. 104) Amends SSA title XI with regard to civil monetary penalty authority concerning treatment of withholding of material facts, and application of civil money penalties to elements of criminal violations.
(Sec. 105) Amends SSA titles II and XVI (Supplementary Security Income) (SSI) to provide authority for judicial orders of restitution in cases of Social Security payments obtained by fraud.
Amends SSA title VII (Administration) to provide for the establishment of a special fund in the Treasury for receipt of restitution payments.
(Sec. 106) Amends the Fair Credit Reporting Act to provide for confidential treatment of credit report header information including the Social Security account number of the consumer or any derivative thereof.
(Sec. 107) Amends SSA title VII to provide for law enforcement authority by special agents of the Office of the Inspector General of the Social Security Administration.
Title II: Provisions Relating to Representative Payees - Amends SSA titles II and XVI to authorize reissue to beneficiaries or alternative representative payees of OASDI and SSI benefits misused by organizational representative payees.
(Sec. 202) Amends SSA titles II and XVI to provide for: (1) oversight of nongovernmental organizational representative payees and disqualification from service as a representative payee upon a felony conviction; (2) fee forfeiture in case of benefit misuse by such a representative payees; (3) liability of representative payees for misused benefits; and (4) extension of civil monetary penalty authority with respect to representative payees.
[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2876 Introduced in Senate (IS)]
106th CONGRESS
2d Session
S. 2876
To amend the Social Security Act to enhance privacy protections for
individuals, to prevent fraudulent misuse of the social security
account number, and to provide additional safeguards for Social
Security and Supplemental Security Income beneficiaries with
representative payees, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 14, 2000
Mr. Bunning introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Social Security Act to enhance privacy protections for
individuals, to prevent fraudulent misuse of the social security
account number, and to provide additional safeguards for Social
Security and Supplemental Security Income beneficiaries with
representative payees, 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 AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Privacy and
Identity Protection Act of 2000''.
(b) Table of Contents.--The table of contents is as follows:
Sec. 1. Short title and table of contents.
Sec. 2. Findings.
TITLE I--PROVISIONS RELATING TO THE SOCIAL SECURITY ACCOUNT NUMBER
Sec. 101. Governmental use and treatment of social security account
numbers.
Sec. 102. Regulation of the sale and purchase of the social security
account number in the private sector.
Sec. 103. New criminal penalties for misuse of social security account
numbers.
Sec. 104. Extension of civil monetary penalty authority.
Sec. 105. Authority for judicial orders of restitution.
Sec. 106. Confidential treatment of credit header information.
Sec. 107. Law enforcement authority for the Office of the Inspector
General of the Social Security
Administration.
TITLE II--PROVISIONS RELATING TO REPRESENTATIVE PAYEES
Sec. 201. Authority to reissue benefits misused by organizational
representative payees.
Sec. 202. Oversight of nongovernmental organizational representative
payees.
Sec. 203. Disqualification from service as representative payee upon
conviction of offenses punishable by
imprisonment for more than 1 year.
Sec. 204. Fee forfeiture in case of benefit misuse by representative
payees.
Sec. 205. Liability of representative payees for misused benefits.
Sec. 206. Extension of civil monetary penalty authority with respect to
representative payees.
SEC. 2. FINDINGS.
The Congress makes the following findings:
(1) The inappropriate sale or purchase of social security
account 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 account
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 account 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
account 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 account 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 account 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 account 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
account numbers in circumstances that might facilitate unlawful
conduct or that might otherwise likely result in unfair and
deceptive practices.
TITLE I--PROVISIONS RELATING TO THE SOCIAL SECURITY ACCOUNT NUMBER
SEC. 101. GOVERNMENTAL USE AND TREATMENT OF SOCIAL SECURITY ACCOUNT
NUMBERS.
(a) Restrictions on the Sale of Social Security Account Numbers by
Governmental Agencies.--
(1) In general.--Section 205(c)(2)(C) of the Social
Security Act (42 U.S.C. 405(c)(2)(C)) is amended by adding at
the end the following new clause:
``(x) No agency or instrumentality of the Federal Government or of
a State or a political subdivision thereof in possession of any
individual's social security account number may accept an item of
material value in exchange for such number, or any derivative thereof,
except to the extent specifically authorized by this title.''.
(2) Effective date.--The amendment made by this subsection
shall apply with respect to violations occurring after 180 days
after the date of the enactment of this Act.
(b) Prohibition of Public Access to Social Security Account Numbers
Possessed by Governmental Agencies.--
(1) In general.--Section 205(c)(2)(C)(viii) of such Act (42
U.S.C. 405(c)(2)(C)(viii)) is amended by adding at the end the
following new subclause:
``(V) No agency or instrumentality of the Federal Government or of
a State or a political subdivision thereof may display to the general
public any individual's social security account number, or any
derivative of such number. Each such agency or instrumentality shall
ensure that access to such numbers, and any derivative of such numbers,
is restricted to persons who may obtain them in accordance with
applicable law. For purposes of this subclause, the term `display to
the general public' in connection with a social security account
number, or a derivative thereof, means the intentional placing of such
number or derivative in a viewable manner on an Internet site that is
available to the general public or in material made available or sold
to the general public.''.
(2) Effective date.--The amendment made by this subsection
shall apply only with respect to displays originally occurring
after 2 years after the date of the enactment of this Act.
(c) Report by General Accounting Office on Use by Governmental
Agencies as Personal Identification Number.--
(1) Study.--The Comptroller General of the United States
shall undertake a study of--
(A) the current usage, by agencies and
instrumentalities in all branches of the Federal
Government and by agencies and instrumentalities of
States and political subdivisions thereof, of the
social security account numbers of individuals, and
derivatives of such numbers, for purposes of
identification of such individuals, and
(B) the most effective means by which any such
usage extending beyond the original purposes of the
social security account number may be minimized.
(2) Report.--Not later than 1 year after the date of the
enactment of this Act, the Comptroller General shall submit a
report to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate
setting forth the results of the study conducted pursuant to
this subsection. Such report shall contain such
recommendations, including proposals for legislative changes,
as the Comptroller General deems appropriate.
(d) Prohibition of Use of Social Security Account Number on Checks
Issued for Payment by Governmental Agencies.--
(1) In general.--Section 205(c)(2)(C) of the Social
Security Act (42 U.S.C. 405(c)(2)(C)) (as amended by subsection
(a)) is amended further by adding at the end the following new
clause:
``(xi) No agency or instrumentality of the Federal Government or of
a State or a political subdivision thereof may include the social
security account number of any individual, or any derivative of such
number, on any check issued for any payment by the Federal Government,
any State or political subdivision thereof, or any agency or
instrumentality thereof.''.
(2) Effective date.--The amendment made by this subsection
shall apply with respect to violations occurring after 2 years
after the date of the enactment of this Act.
(e) Independent Verification of Birth Records Provided in Support
of Applications for Social Security Account Numbers.--
(1) In general.--Section 205(c)(2)(B)(ii) of such Act (42
U.S.C. 405(c)(2)(B)(ii)) is amended by adding at the end the
following new sentence: ``With respect to an application for a
social security account number for an individual other than for
purposes of enumeration at birth, the Commissioner shall
require independent verification of any birth record provided
by the applicant in support of the application.''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply with respect to applications filed after 1 year
after the date of the enactment of this Act.
(3) Report on enumeration at entry.--Not later than 1 year
after the date of the enactment of this Act, the Commissioner
of Social Security and the Attorney General of the United
States shall jointly submit a report detailing the progress of
the Social Security Administration and the Immigration and
Naturalization Service in implementing a process for
enumeration at entry for aliens entering the United States.
Such report shall be submitted to the Committee on Ways and
Means and the Committee on the Judiciary of the House of
Representatives and the Committee on Finance and the Committee
on the Judiciary of the Senate.
(f) Prohibition of Appearance of Social Security Account Numbers on
Driver's Licenses or Motor Vehicle Registration.--
(1) In general.--Section 205(c)(2)(C)(vi) of such Act (42
U.S.C. 405(c)(2)(C)(vi)) is amended--
(A) by inserting ``(I)'' after ``(vi)''; and
(B) by adding at the end the following new
subclause:
``(II) A State (or political subdivision thereof), in the
administration of any driver's license or motor vehicle registration
law within its jurisdiction, may not disclose the social security
account numbers issued by the Commissioner of Social Security, or any
derivative of such numbers, on any driver's license or motor vehicle
registration or any other document issued by such State or political
subdivision to an individual for purposes of identification of such
individual.''.
(2) Effective date.--The amendment made by this subsection
shall apply with respect to licenses, registrations, and other
documents issued or reissued after 180 days after the date of
the enactment of this Act.
(g) Prohibition of Display by Governmental Agencies of Personal
Identification Number.--
(1) In general.--Section 205(c)(2)(C) of the Social
Security Act (42 U.S.C. 405(c)(2)(C)) (as amended by the
preceding provisions of this section) is amended further by
adding at the end the following new clause:
``(xii) No agency or instrumentality of the Federal Government or
of a State or political subdivison thereof may display the social
security account number, or any deriviative of such number, on any card
or tag provided to the employee for purposes of identification. For
purposes of this clause, the term `display' in connection with a social
security account number, or a derivative thereof, means the intentional
placing of such number or derivitive in a viewable manner on a card or
tag that is commonly provided to the individual and is to be maintained
by the individual.''.
(2) Effective date.--The amendment made by this subsection
shall apply with respect to violations occurring after 1 year
after the date of the enactment of this Act.
SEC. 102. REGULATION OF THE SALE AND PURCHASE OF THE SOCIAL SECURITY
ACCOUNT NUMBER IN THE PRIVATE SECTOR.
(a) Definitions.--In this section:
(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 ``sell'' in connection with a social
security account number means to obtain, directly or
indirectly, anything of value in exchange for such number. Such
term does not include the submission of such number as part of
the process for applying for any type of Government benefits or
programs (such as grants or loans or welfare or other public
assistance programs). Such term also does not include transfers
of such number as part of a data matching program under the
Computer Matching and Privacy Protection Act and the amendments
made thereby.
(4) Purchase.--The term ``purchase'' in connection with a
social security account number means to provide, directly or
indirectly, anything of value in exchange for such number. Such
term does not include the submission of such number 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 number as part of a data matching
program under the Computer Matching and Privacy Protection Act
and the amendments made thereby.
(5) Social security account number.--The term `social
security account number' has the meaning given such term 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.
(b) Prohibition.--It shall be unlawful for any person to sell or
purchase a social security account number in a manner that violates a
regulation promulgated by the Commission under subsection (c) of this
section.
(c) 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 account numbers and any
unfair or deceptive acts or practices in connection with the
sale and purchase of 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 account
numbers that are no broader than necessary--
(A) to provide reasonable assurance that 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 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 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 account number that
has been assigned to that individual; and
(F) under other appropriate circumstances as the
Commission may determine are consistent with the
findings in section 2 of this Act and the principles in
paragraph (2).
(d) 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 (c) of this section, in
accordance with section 553 of title 5, United States Code.
(2) Effective dates.--Subsection (b) and the regulations
promulgated under subsection (c) shall take effect 30 days
after the date on which the final regulations issued under this
section are published in the Federal Register.
(e) Enforcement.--Any violation of a regulation promulgated under
subsection (c) 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.
(f) 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 section. 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 section. Nothing contained in this section 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 (c), 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.
(g) Unfair or Deceptive Act or Practice.--Any person who refuses to
do business with an individual because the individual will not consent
to the receipt by such person of the social security account number of
such individual shall be considered to have committed an unfair or
deceptive act or practice in violation of section 5 of the Federal
Trade Commission Act (15 U.S.C. 45). Action may be taken under such
section 5 against such a person.
SEC. 103. NEW CRIMINAL PENALTIES FOR MISUSE OF SOCIAL SECURITY ACCOUNT
NUMBERS.
(a) Sale and Purchase of Social Security Account Numbers.--Section
208 of the Social Security Act (42 U.S.C. 408) is amended--
(1) in subsection (a)(8), by striking ``or'' and by
inserting ``, or knowingly sells or purchases'' after ``the
disclosure of'';
(2) in subsection (c), by striking the last sentence;
(3) by redesignating subsection (d) as subsection (e); and
(4) by inserting after subsection (c) the following new
subsection:
``(d)(1) For purposes of subsection (a)(7), the term `social
security account number' means a number assigned by the Commissioner of
Social Security under section 205(c)(2) whether or not, in actual use,
such number is called a social security account number.
``(2) For purposes of subsection (a)(8), the term `sell' in
connection with a social security account number means to obtain,
directly or indirectly, anything of value in exchange for such number.
Such term does not include the submission of such number as part of the
process for applying for any type of Government benefits or programs
(such as grants or loans or welfare or other public assistance
programs). Such term also does not include a transfer of such number as
part of a data matching program under the Computer Matching and Privacy
Protection Act and the amendments made thereby.
``(3) For purposes of subsection (a)(8), the term `purchase' in
connection with a social security account number means to provide,
directly or indirectly, anything of value in exchange for such number.
Such term does not include the submission of such number as part of the
process for applying for any type of Government benefits or programs
(such as grants or loans or welfare or other public assistance
programs). Such term also does not include a transfer of such number as
part of a data matching program under the Computer Matching and Privacy
Protection Act and the amendments made thereby.''.
(b) Additional Provisions.--
(1) In general.--Section 208(a) of such Act is amended
further--
(A) in paragraph (8), by adding ``or'' at the end;
and
(B) by inserting after paragraph (8) the following
new paragraphs:
``(9) 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 that purports to be a
social security account number; or
``(10) being an officer or employee of any agency of the
Federal Government or of a State or political subdivision
thereof 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), (viii)(V), (x), or
(xi) of section 205(c)(2)(C);''.
(2) Effective dates.--Section 208(a)(9) of the Social
Security Act (added by paragraph (1)) shall apply with respect
to violations occurring after the date of the enactment of this
Act. Section 208(a)(10) of such Act (added by paragraph (1))
shall apply with respect to violations occurring on an after
the effective date applicable with respect to such violations
under section 101.
SEC. 104. EXTENSION OF CIVIL MONETARY PENALTY AUTHORITY.
(a) Treatment of Withholding of Material Facts.--
(1) Civil penalties.--Section 1129(a)(1) of the Social
Security Act (42 U.S.C. 1320a-8(a)(1)) is amended in the first
sentence--
(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 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 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.--
Section 1129A(a) of such Act (42 U.S.C. 1320a-8a(a)) is amended
in the first sentence--
(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 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 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 such Act (42 U.S.C. 1320a-8(a)) is
amended further--
(1) by redesignating paragraph (2) as paragraph (4);
(2) by designating the last sentence of paragraph (1) as a
new paragraph (2), appearing after and below paragraph (1); and
(3) by inserting after paragraph (2) (as designated under
paragraph (2) of this subsection) 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 buys or sells 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 buy or sell it;
``(E) counterfeits a social security card, or possesses a
counterfeit social security card with intent to buy or sell it;
``(F) discloses, uses, compels the disclosure of, or
knowingly 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 any agency of the
Federal Government or of a State or political subdivision
thereof 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), (viii)(V), (x), or
(xi) 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 such 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 XVI,'' and inserting ``In the case of
any other amounts recovered under this section,''.
(d) Conforming Amendments.--
(1) Section 1129(b)(3)(A) of such 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 such 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 such 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.--The amendments made by this section shall
apply with respect to violations committed after the date of the
enactment of this Act, except that section 1129(a)(3)(I) of the Social
Security Act (added by subsection (b)) shall apply with respect to
violations occurring on or after the effective date provided in
connection with such violations under section 101.
SEC. 105. AUTHORITY FOR JUDICIAL ORDERS OF RESTITUTION.
(a) Amendments to Title II.--Section 208 of the Social Security Act
(42 U.S.C. 408) is amended--
(1) by redesignating subsections (b), (c), and (d) as
subsections (c), (d), and (e), respectively; and
(2) by inserting after subsection (a) the following new
subsection:
``(b)(1) Any Federal court, when sentencing a defendant convicted
of an offense under subsection (a), may order, in addition to or in
lieu of any other penalty authorized by law, that the defendant make
restitution to the Social Security Administration.
``(2) Sections 3612, 3663, and 3664 of title 18, United States
Code, shall apply with respect to the issuance and enforcement of
orders of restitution under this subsection. In so applying such
sections, the Social Security Administration shall be considered the
victim.
``(3) If the court does not order restitution, or orders only
partial restitution, under this section, the court shall state on the
record the reasons therefor.''.
(b) Amendments to Title XVI.--Section 1632 of such Act (42 U.S.C.
1383a) is amended--
(1) by redesignating subsection (b) as subsection (c); and
(2) by inserting after subsection (a) the following new
subsection:
``(b)(1) Any Federal court, when sentencing a defendant convicted
of an offense under subsection (a), may order, in addition to or in
lieu of any other penalty authorized by law, that the defendant make
restitution to the Social Security Administration.
``(2) Sections 3612, 3663, and 3664 of title 18, United States
Code, shall apply with respect to the issuance and enforcement of
orders of restitution under this subsection. In so applying such
sections, and the Social Security Administration shall be considered
the victim.
``(3) If the court does not order restitution, or orders only
partial restitution, under this section, the court shall state on the
record the reasons therefor.''.
(c) Special Account for Receipt of Restitution Payments.--Section
704(b) of such Act (42 U.S.C. 904(b)) is amended by adding at the end
the following new paragraph:
``(3)(A) Except as provided in subparagraph (B), amounts received
by the Social Security Administration pursuant to an order of
restitution under section 208(b) or 1632(b) shall be credited to a
special fund established in the Treasury of the United States for
amounts so received or recovered. The amounts so credited, to the
extent and in the amounts provided in advance in appropriations Acts,
shall be available to defray expenses incurred in carrying out title II
and title XVI.
``(B) Subparagraph (A) shall not apply with respect to amounts
received in connection with misuse by a representative payee (within
the meaning of sections 205(j) and 1631(a)(2)) of funds paid as
benefits under title II or XVI. Such amounts received in connection
with misuse of funds paid as benefits under title II shall be
transferred to the Managing Trustee of the Federal Old-Age and
Survivors Insurance Trust Fund or the Federal Disability Insurance
Trust Fund, as determined appropriate by the Commissioner of Social
Security, and such amounts shall be deposited by the Managing Trustee
into such Trust Fund. All other such amounts shall be deposited by the
Commissioner into the general fund of the Treasury as miscellaneous
receipts.''.
(d) Effective Date.--The amendments made by subsections (a) and (b)
shall apply with respect to violations occurring on or after the date
of the enactment of this Act.
SEC. 106. CONFIDENTIAL TREATMENT OF CREDIT HEADER INFORMATION.
(a) In General.--Section 603(d) of the Fair Credit Reporting Act
(15 U.S.C. 1681a(d)) is amended by inserting after the first sentence
the following: ``The term also includes information regarding the
social security account number of the consumer or any derivative
thereof.''.
(b) Effective Date.--The amendment made by this section shall take
effect 90 days after the date of the enactment of this Act.
SEC. 107. LAW ENFORCEMENT AUTHORITY FOR THE OFFICE OF THE INSPECTOR
GENERAL OF THE SOCIAL SECURITY ADMINISTRATION.
Section 702(e) of the Social Security Act (42 U.S.C. 902(e)) is
amended--
(1) by inserting ``(1) In general.--'' after ``(e)''; and
(2) by adding at the end the following:
``(2) Law enforcement authority.--
``(A) Specific designations.--The Inspector General may
designate one or more special agents in the Office of the
Inspector General to exercise the authorities specified in
subparagraph (B).
``(B) Authorities.--A special agent in the Office of the
Inspector General who is designated under subparagraph (A)
may--
``(i) carry firearms,
``(ii) execute and serve any warrant or other
process issued under the authority of the United
States, and
``(iii) make arrests without warrant for--
``(I) any offense against the United States
committed in the special agent's presence, or
``(II) any offense punishable under Federal
law by imprisonment for more than 1 year, if
the special agent has probable cause to believe
that the person to be arrested has committed or
is committing the offense.
``(C) Special agent.--For purposes of this paragraph, the
term `special agent' means an employee in the Office of the
Inspector General whose duties include conducting, supervising,
and coordinating investigations of criminal activity in the
programs and operations of the Administration.
``(D) Use of state or local law enforcement officers.--
``(i) In general.--Any State or local law
enforcement officer designated by the Inspector
General, while assisting a special agent designated
under subparagraph (A), may exercise the authorities
provided under subparagraph (B).
``(ii) Applicability of provisions governing
federal employees.--
``(I) In general.--Any such officer shall
not be deemed a Federal employee, and, subject
to subclause (II), shall not be subject to
provisions of law relating to Federal
employees, solely by reason of the exercise by
such officer of any such authority.
``(II) Applicability of certain
provisions.--While exercising such authority,
such officer shall be subject to subsection (c)
of section 3374 of title 5, United States Code,
as if such officer were assigned and appointed
as described in such section, except that
nothing in this clause shall be construed to
authorize Federal pay or other compensation for
such officer.
``(E) Guidelines on exercise of authorities.--The
authorities provided under subparagraph (B) shall be exercised
in accordance with guidelines prescribed by the Inspector
General and approved by the Attorney General of the United
States.''.
TITLE II--PROVISIONS RELATING TO REPRESENTATIVE PAYEES
SECTION 201. AUTHORITY TO REISSUE BENEFITS MISUSED BY ORGANIZATIONAL
REPRESENTATIVE PAYEES.
(a) OASDI Amendment.--Section 205(j)(5) of the Social Security Act
(42 U.S.C. 405(j)(5)) is amended by inserting after the first sentence
the following new sentence: ``In any case in which a representative
payee--
``(i) that is not an individual (regardless of whether it
is a `qualified organization' within the meaning of paragraph
(4)(B)); or
``(ii) is an individual who, for any month during a period
when misuse occurs, serves 10 or more individuals who are
beneficiaries under title II, title XVI, title VIII, or any
combination of such titles;
misuses all or part of an individual's benefit paid to such
representative payee, the Commissioner of Social Security shall certify
for payment to the beneficiary or the beneficiary's alternative
representative payee an amount equal to the amount of such benefit so
misused. The provisions of this paragraph are subject to the
limitations of paragraph (6)(B).''.
(b) SSI Amendment.--Section 1631(a)(2)(E) of such Act (42 U.S.C.
1383(a)(2)(E)) is amended by inserting after the first sentence the
following new sentence: ``In any case in which a representative payee--
``(i) that is not an individual (regardless of whether it
is a `qualified organization' within the meaning of
subparagraph (D)(ii)); or
``(ii) is an individual who, for any month during a period
when misuse occurs, serves 10 or more individuals who are
beneficiaries under title II, title XVI, title VIII, or any
combination of such titles;
misuses all or part of an individual's benefit paid to such
representative payee, the Commissioner of Social Security shall make
payment to the beneficiary or the beneficiary's alternative
representative payee of an amount equal to the amount of such benefit
so misused. The provisions of this subparagraph are subject to the
limitations of subparagraph (F)(ii).''.
(c) Effective Date.--The preceding amendments made by this section
shall apply to any case of benefit misuse by a representative payee
with respect to which the Commissioner makes the determination of
misuse after the date of the enactment of the Omnibus Budget
Reconciliation Act of 1990 (Public Law 101-501).
(d) Technical Amendment.--Section 205(j) of the Social Security Act
(42 U.S.C. 405(j)) is amended by striking paragraph (6).
SEC. 202. OVERSIGHT OF NONGOVERNMENTAL ORGANIZATIONAL REPRESENTATIVE
PAYEES.
(a) Certification of Bonding and Licensing Requirements.--
(1) OASDI amendment.--Section 205(j) of the Social Security
Act (42 U.S.C. 405(j)) is amended--
(A) in paragraph (2)(C)(v)--
(i) by striking ``a community-based
nonprofit social service agency licensed or
bonded by the State'' in subclause (I) and
inserting ``a certified community-based
nonprofit social service agency; and
(ii) by adding at the end the following:
``For purposes of subclause (I), the term
`certified community-based nonprofit social
service agency' means a community based
nonprofit social service agency which is in
compliance with requirements, under regulations
which shall be prescribed by the Commissioner,
for annual certification to the Commissioner that it is bonded in
accordance with requirements specified by the Commissioner and that it
is licensed in each State in which it serves as a representative payee
(if licensing is available in such State in accordance with
requirements specified by the Commissioner). Any such annual
certification shall include a copy of any independent audit on such
agency which may have been performed since the previous
certification.''; and
(B) in paragraph (4)(B), by striking ``any
community-based nonprofit social service agency which
is bonded or licensed in each State in which it serves
as a representative payee'' and inserting ``any
certified community-based nonprofit social service
agency (as defined in paragraph (2)(C)(v))''.
(2) SSI amendment.--Section 1631(a)(2) of such Act (42
U.S.C. 1383(a)(2)) is amended--
(A) in subparagraph (B)(vii)--
(i) by striking ``a community-based
nonprofit social service agency licensed or
bonded by the State'' in subclause (I) and
inserting ``a certified community-based
nonprofit social service agency''; and
(ii) by adding at the end the following:
``For purposes of subclause (I), the term
`certified community-based nonprofit social
service agency' means a community based
nonprofit social service agency which is in
compliance with requirements, under regulations
which shall be prescribed by the Commissioner,
for annual certification to the Commissioner
that it is bonded in accordance with
requirements specified by the Commissioner and
that it is licensed in each State in which it
serves as a representative payee (if licensing
is available in such State in accordance with
requirements specified by the Commissioner).
Any such annual certification shall include a
copy of any independent audit on such agency
which may have been performed since the
previous certification.''; and
(B) in subparagraph (D)(ii)--
(i) by striking ``or any community-based''
and all that follows down through ``in
accordance'' in subclause (II) and inserting
``or any certified community-based nonprofit
social service agency (as defined in
subparagraph (B)(vii)), if such agency, in
accordance'';
(ii) by redesignating items (aa) and (bb)
as subclauses (I) and (II), respectively (and
adjusting the margination accordingly); and
(iii) by striking ``subclause (II)(bb)''
and inserting ``subclause (II)''.
(3) Effective date.--The amendments made by this subsection
shall take effect on the first day of the thirteenth month
beginning after the date of the enactment of this Act.
(b) Periodic Onsite Review.--
(1) OASDI amendment.--Section 205(j)(4) of such Act (42
U.S.C. 405(j)(4)) is amended by adding at the end the following
new subparagraph:
``(D) The Commissioner of Social Security shall provide by
regulation for the periodic onsite inspection of community-based
nonprofit social service agencies serving as representative payees
under this subsection.''.
(2) SSI amendment.--Section 1631(a)(2)(D) of such Act (42
U.S.C. 1383(a)(2)(D)) is amended by adding at the end the
following new clause:
``(v) The Commissioner of Social Security shall provide by
regulation for the periodic onsite inspection of community-based
nonprofit social service agencies serving as representative payees
under this paragraph.''.
SEC. 203. DISQUALIFICATION FROM SERVICE AS REPRESENTATIVE PAYEE UPON
CONVICTION OF OFFENSES PUNISHABLE BY IMPRISONMENT FOR
MORE THAN 1 YEAR.
(a) OASDI Amendment.--Section 205(j)(2) of the Social Security Act
(42 U.S.C. 405(j)(2)) is amended--
(1) in subparagraph (B)(i)--
(A) by striking ``and'' at the end of subclause
(III);
(B) by redesignating subclause (IV) as subclause
(V); and
(C) by inserting after subclause (III) the
following new subclause:
``(IV) determine whether such person has been convicted of
any other offense punishable under Federal or State law by
imprisonment for more than 1 year (regardless of the actual
sentence imposed), and''; and
(2) in subparagraph (C)(i), by adding after and below
subclause (III) the following new sentence:
``Benefits of an individual may not be certified for payment to any
other person pursuant to this subsection if such person has previously
been convicted as described in subparagraph (B)(i)(IV), unless the
Commissioner determines that such certification would be appropriate
notwithstanding such conviction.''.
(b) SSI Amendment.--Section 1631(a)(2)(B) of such Act (42 U.S.C.
1383(a)(2)(B)) is amended--
(1) in clause (ii)--
(A) by striking ``and'' at the end of subclause
(III);
(B) by redesignating subclause (IV) as subclause
(V); and
(C) by inserting after subclause (III) the
following new subclause:
``(IV) determine whether such person has been convicted of
any other offense punishable under Federal or State law by
imprisonment for more than 1 year (regardless of the actual
sentence imposed), and''; and
(2) in clause (iii), by adding after and below subclause
(III) the following new sentence:
``Benefits of an individual may not be paid to any other person
pursuant to subparagraph (A)(ii) if such person has previously been
convicted as described in clause (ii)(IV), unless the Commissioner
determines that such certification would be appropriate notwithstanding
such conviction.''.
(c) Effective Date.--The amendments made by this section shall take
effect on the first day of the thirteenth month beginning after the
date of the enactment of this Act.
SEC. 204. FEE FORFEITURE IN CASE OF BENEFIT MISUSE BY REPRESENTATIVE
PAYEES.
(a) OASDI Amendment.--Section 205(j)(4)(A)(i) of the Social
Security Act (42 U.S.C. 405(j)(4)(A)(i)) is amended--
(1) in the first sentence, by striking ``A'' and inserting
``Except as provided in the next sentence, a''; and
(2) by inserting before the second sentence the following
new sentence: ``A qualified organization may not collect a fee
from an individual for any month with respect to which the
Commissioner of Social Security or a court of competent
jurisdiction has determined that the organization misused all
or part of the individual's benefit, and any amount so
collected by the qualified organization for such month shall be
treated as a misused part of the individual's benefit for
purposes of paragraphs (5) and (6).''.
(b) SSI Amendment.--Section 1631(a)(2)(D)(i) of such Act (42 U.S.C.
1383(a)(2)(D)(i)) is amended--
(1) in the first sentence, by striking ``A'' and inserting
``Except as provided in the next sentence, a''; and
(2) by inserting before the second sentence the following
new sentence: ``A qualified organization may not collect a fee
from an individual for any month with respect to which the
Commissioner of Social Security or a court of competent
jurisdiction has determined that the organization misused all
or part of the individual's benefit, and any amount so
collected by the qualified organization for such month shall be
treated as a misused part of the individual's benefit for
purposes of subparagraphs (E) and (F).''.
(c) Effective Date.--The amendments made by this section shall
apply to any month involving benefit misuse by a representative payee
in any case with respect to which the Commissioner makes the
determination of misuse after December 31, 1999.
SEC. 205. LIABILITY OF REPRESENTATIVE PAYEES FOR MISUSED BENEFITS.
(a) OASDI Amendment.--Section 205(j) of the Social Security Act (42
U.S.C. 405(j)) is amended by redesignating paragraphs (6) and (7) as
paragraphs (7) and (8), respectively, and inserting after paragraph (5)
the following new paragraph:
``(6)(A) If the Commissioner of Social Security or a court of
competent jurisdiction determines that a representative payee that is
not a State or local government agency has misused all or part of an
individual's benefit that was paid to such representative payee under
this subsection, the representative payee shall be liable for the
amount misused, and such amount (to the extent not repaid by the
representative payee) shall be treated as an overpayment of benefits
under this title to the representative payee for all purposes of this
Act and related laws pertaining to the recovery of such overpayments.
Subject to subparagraph (B), upon recovering all or any part of such
amount, the Commissioner shall certify an amount equal to the recovered
amount for payment to such individual or the individual's alternative
representative payee.
``(B) The total of the amount certified for payment to such
individual or the individual's alternative representative payee under
subparagraph (A) and the amount certified for payment under paragraph
(5) may not exceed the total benefit amount misused by the
representative payee with respect to such individual.''.
(b) SSI Amendment.--Section 1631(a)(2) of such Act (42 U.S.C.
1383(a)(2)) is amended by redesignating subparagraphs (F), (G), and (H)
as subparagraphs (G), (H), and (I), respectively, and inserting after
subparagraph (E) the following new subparagraph:
``(F)(i) If the Commissioner of Social Security or a court of
competent jurisdiction determines that a representative payee that is
not a State or local government agency has misused all or part of an
individual's benefit that was paid to such representative payee under
this paragraph, the representative payee shall be liable for the amount
misused, and such amount (to the extent not repaid by the
representative payee) shall be treated as an overpayment of benefits
under this title to the representative payee for all purposes of this
Act and related laws pertaining to the recovery of such overpayments.
Subject to clause (ii), upon recovering all or any part of such amount,
the Commissioner shall make payment of an amount equal to the recovered
amount to such individual or the individual's alternative
representative payee.
``(ii) The total of the amount paid to such individual or the
individual's alternative representative payee under clause (i) and the
amount paid under subparagraph (E) may not exceed the total benefit
amount misused by the representative payee with respect to such
individual.''.
(c) Effective Date.--The amendments made by this section shall
apply to benefit misuse by a representative payee in any case with
respect to which the Commissioner makes the determination of misuse
after December 31, 1999.
SEC. 206. EXTENSION OF CIVIL MONETARY PENALTY AUTHORITY WITH RESPECT TO
REPRESENTATIVE PAYEES.
(a) In General.--Section 1129(a) of the Social Security Act (42
U.S.C. 1320a-8(a)) (as amended by section 106) is amended further--
(1) by redesignating paragraph (4) as paragraph (5); and
(2) by inserting after paragraph (3) the following new
paragraph:
``(4) Any person (including an organization, agency, or other
entity) who, having received, while acting in the capacity of a
representative payee pursuant to section 205(j) or section 1631(a)(2),
a payment under title II or title XVI for the use and benefit of
another individual, converts such payment, or any part thereof, to a
use that such person knows or should know is other than for the use and
benefit of such other individual 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 conversion. Such person shall
also be subject to an assessment, in lieu of damages sustained by the
United States resulting from such conversion, of not more than twice
the amount of any payments so converted.''.
(b) Effective Date.--The amendments made by this section shall
apply with respect to violations committed after the date of the
enactment of this Act.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S6845)
Read twice and referred to the Committee on Finance.
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