Bill to limit display and use of Social Security numbers advances in Congress

HR Magazine, Sept, 2004 by Bill Leonard

The House Ways and Means Committee unanimously approved legislation on July 21 to restrict the public display and use of Social Security numbers in an effort to combat the growing crime of identity theft. The Social Security Number Privacy and Identity Theft Prevention Act of 2003 (H.R. 2971) has slowly been gathering bipartisan support since it was introduced in Congress one year ago and now has more than 40 co-sponsors in the House.

The legislation would bar government and private firms from selling and publicly displaying Social Security numbers. It would make it more difficult for businesses to deny services to customers who decline to provide their Social Security numbers and would increase penalties for violations of laws relating to their sale or display.

"The wide availability and easy access to this very personal information has greatly facilitated Social Security number-related crimes," said Ways and Means Committee member Rep. E. Clay Shaw Jr., R-Fla., who introduced the legislation. "Today, we literally have a culture of dependence on Social Security numbers, and these numbers play a key role in identity theft. It's no wonder identity theft was the Federal Trade Commission's number one consumer complaint last year."

[ILLUSTRATION OMITTED]

The legislation is a redrafting of a bill introduced in 2001. The initial version was opposed by employers and business advocacy groups because parts of the bill addressing the "display" and "sale" of an individual's Social Security number were vague and would have made it more difficult for businesses to administer and provide health and retirement benefits to workers, according to Mary Huttlinger, manager of tax and benefits policies for the Society for Human Resource Management (SHRM) Governmental Affairs department.

Huttlinger said the original proposal died after the business groups voiced their opposition to it, after which the legislation's sponsors decided to redraft the measure. In response to the concerns raised by employers, H.R. 2971 specifically recognizes the importance of voluntary public and private employee benefits plans and is intended to ensure that administration of these plans will not be hampered by the law.

The revisions to the bill changed the stance of many business-related groups, including SHRM, and these groups generally praise the current legislation, stating that the protections it offers are sorely needed.

"This is a strong bipartisan bill that strikes an important balance between protecting Social Security numbers and preserving their essential uses," said Shaw after the bill was approved by the full Ways and Means Committee by a 33-0 vote. "I am pleased it has moved forward so quickly, and my hope is that it will be voted on by the full House in the near future."

With its strong bipartisan backing, H.R. 2971 could reach the House floor for a vote in September. Congress adjourned on July 23 for an August recess and is scheduled to return to session the week after Labor Day.