Bipartisan bill to limit use of Social Security numbers

by William Neikirk

Top members of the House Ways and Means Committee from both parties want to limit the use of your Social Security number by government and business in order to crack down on identity theft, a growing scourge in society.

A bill they introduced Monday falls short of an outright ban on using the number for governmental or business purposes, but its sponsors say it would help reduce the amount of identity theft. The question is whether the exceptions allowed under the bill would still give identity thieves enough room to operate. Time will tell, as they say.

But by permitting some exceptions, the sponsors do tacitly concede that your SSN is still a mighty handy universal identifier for many government and business purposes. It would still be possible to use it for credit purposes, for example. And I know a lot of people nervous about mentioning their SSN in public when applying for credit in a store.

The measure, introduced by Rep. Charles Rangel (D-N.Y.), chairman of the powerful committee, and Rep. James McCrery (R-La.), the ranking GOP member, results from 16 hearings conducted by the panel's Social Security subcommittee, headed by Rep. Michael McNulty (D-N.Y.). Also supporting it is the subcommittee's ranking Republican, Rep. Sam Johnson of Texas.

It should pass easily with such strong bipartisan support. The only question is whether it should be tougher.

The bill would prohibit using a Social Security card to steal someone's identity. A violator could be imprisoned for up to five years and fined up to $250,000. And there would be a civil penalty up to $5,000 for each incident of identity theft.

It would ban federal, state and local governments from selling Social Security numbers, but with some exceptions. These include purposes such as tax collection, research, facilitating law enforcement and national security, ensuring the accuracy of insurance underwriting, and administering the Fair Credit Act. Further exceptions could be made by regulation.

It would prohibit governments from displaying Social Security numbers to the general public, including on the Internet. The bank would apply to government checks issued for payment, Medicare cards and for identification tags issued to employees and their families as well as for patients and students at public institutions.

And here's an interesting one: The prohibition would bar governments from "employing prisoners in jobs that provide them with access to Social Security numbers," such as manufacturing car license tags. In 2004, states were banned from putting Social Security numbers on drivers' licenses (although drivers who got their licenses before then and haven't renewed may still have a SSN on them).

The private sector could not sell or purchase Social Security numbers but there's a long list of exceptions, such as: For law enforcement, national security, health or safety emergency situations, and tax purposes. Also, the exceptions include ensuring the accuracy of credit and insurance information, in connection with the sale, lease for merger of a business, for some research, and "with the individual's affirmative, written consent."

The private sector could not display SSNs to the public, including on checks and on the Internet, on cards and tags used to access goods, services or benefits, or "on cards and tags issued to employees, their family members or other individuals."

This provision would apply to health-care cards when they are re-issued by employers, Ways and Means staff members said.

"Identity theft ruins individuals good names and destroys their credit ratings," McNulty said. "Identity thieves have stolen the homes of elderly retirees and have caused innocent persons to be arrested when crimes are committed under a falsified name. It is time to have some common-sense limits on the use of Social Security numbers by government and business in order to reduce their easy availability and ensure the privacy of private information."

"Identity theft has victimized millions and cost businesses billions," said McCrery. "This bill achieves a necessary balance by enhancing Social Security privacy, yet allowing the use of Social Security numbers for legitimate and necessary purposes.”

Johnson said national security is involved. “In this era, foiling identity thieves is not just about protecting peoples’ hard-earned savings and credit – it is also about protecting our nation from terrorists,” he said.