History of the Social Security System

• The Social Security Act (P.L. 74-271) is enacted. It did not expressly mention the use of SSNs, but it authorized the creation of some type of record keeping scheme.
• Treasury Decision 4704, a Treasury regulation in 1936 which required the issuance of an account number to each employee covered by the Social Security program.
• The Social Security Board considered various numbering systems and ways (such as metal tags, etc.) by which employees could indicate they had been issued a number

Executive Order 9397 (3 CFR (1943-1948 Comp.) 283-284) required:

• All Federal components to use the SSN "exclusively" whenever the component found it advisable to set up a new identification system for individuals.
• The Social Security Board to cooperate with Federal uses of the number by issuing and verifying numbers for other Federal agencies

SSA task force report published which proposed that SSA take a "cautious and conservative" position toward SSN use and do nothing to promote the use of the SSN as an identifier. The report recommended that SSA

• Use mass SSN enumeration in schools as a long-range, cost-effective approach to tightening up the SSN system, and
• Consider cooperating with specific health, education and welfare uses of the SSN by State, local, and other nonprofit organizations.

Social Security Amendments of 1972 (P.L. 92-603):

• Required SSA to issue SSNs to all legally admitted aliens at entry and of anyone receiving or applying for any benefit paid for by Federal funds;
• Required SSA to obtain evidence to establish age, citizenship, or alien status and identity.
• Authorized SSA to enumerate children at the time they first entered school.

Privacy Act (P.L. 93-579) enacted effective September 27, 1975 to limit governmental use of the SSN:

• Provided that no State or local government agency may withhold a benefit from a person simply because the individual refuses to furnish his or her SSN.
• Required that Federal, State and local agencies which request an individual to disclose his/her SSN inform the individual if disclosure was mandatory or voluntary. (This was the first mention of SSN use by local governments.)

Social Services Amendments of 1974 (P.L. 93-647) provided that:

• disclosure of an individual's SSN is a condition of eligibility for AFDC benefits; and
• Office of Child Support enforcement Parent Locator Service may require disclosure of limited information (including SSN and whereabouts) contained in SSA records.

Tax Reform Act of 1976 (P.L. 94-455) included the following amendments to the Social Security Act:

• To allow use by the States of the SSN in the administration of any tax, general public assistance, driver's license or motor vehicle registration law within their jurisdiction and to authorize the States to require individuals affected by such laws to furnish their SSNs to the States;
• To make misuse of the SSN for any purpose a violation of the Social Security Act;
• To make, under federal law, unlawful disclosure or compelling disclosure of the SSN of any person a felony, punishable by fine and/or imprisonment.
• To amend section 6109 of the Internal Revenue Code to provide that the SSN be used as the tax identification number (TIN) for all tax purposes. While the Treasury Department had been using the SSN as the TIN by regulation since 1962, this law codified that requirement.

Federal Advisory Committee on False Identification recommended that penalties for misuse should be increased and evidence requirements tightened; rejected the idea of national identifier and did not even consider the SSN for such a purpose.

[All that had been done in 1973 and 1974 was now undone. How could this have happened? Who was behind it? I don't know. I know that the ending the Vietnam War, the oil shortage and gas lines, the Watergate scandal, Nixon's tapes, Nixon's resignation and Ford's pardon were all the country was preoccupied with at the time. No one was paying any attention to anything else.]

Food Stamp Act of 1977 (P.L. 96-58) required disclosure of SSNs of all household members as a condition of eligibility for participation in the food stamp program.

Privacy Protection Study Commission recommended that:

• No steps be taken towards developing standard, universal label for individuals until safeguards and policies regarding permissible uses and disclosures were proven effective; and
• Executive Order 9397 be amended so that Federal agencies could no longer use it as legal authority to require disclosure of an individual's SSN. (No action taken.)

The Carter Administration proposed that the Social Security card be one of the authorized documents by which an employer could be assured that a job applicant could work in this country but also stated that the SSN card should not become a national identity document.

Note the changing of the Executive Order. There is no authority for it to begin with, but that seems to be irrlevent to the case.

Reagan Administration stated that it "is explicitly opposed to the creation of a national identity card" but recognized the need for a means for employers to comply with the employer sanctions provisions of its immigration reform legislation.

Omnibus Budget Reconciliation Act of 1981 (P.L. 97-35) required the disclosure of the SSNs of all adult members in the household of children applying to the school lunch program.

Social Security Benefits Act (P.L. 97-123)

• Section 4 added alteration and forgery of a Social Security card to the list of prohibited acts and increased the penalties for such acts.
• Section 6 required any Federal, State or local government agency to furnish the name and SSN of prisoners convicted of a felony to the Secretary of HHS, to enforce suspension of disability benefits to certain imprisoned felons.

Department of Defense Authorization Act (P.L. 97-86) required disclosure of the SSNs to the Selective Service System of all individuals required to register for the draft.

Deficit Reduction Act of 1984 (P.L. 98-369)

• Amended the Social Security Act to establish an income and eligibility verification system involving State agencies administering the AFDC, Medicaid, unemployment compensation, the food stamp programs, and State programs under a plan approved under title I, X, XIV, or XVI of the Act. States were permitted to require the SSN as a condition of eligibility for benefits under any of these programs.
• Amended Section 6050I of the IRC to require that persons engaged in a trade or business file a report (including SSNs) with the IRS for cash transactions over $10,000.
• Amended Section 215 of the IRC to authorize the Secretary of HHS to publish regulations that require a spouse paying alimony to furnish IRS with the taxpayer identification number (i.e., the SSN) of the spouse receiving alimony payments.

The Immigration Reform and Control Act of 1986 (P.L. 99-603):

• Required the Comptroller General to investigate technological changes that could reduce the potential for counterfeiting Social Security cards;
• Provides that the Social Security card may be used to establish the eligibility of a prospective employee for employment; and
• Required the Secretary of HHS to undertake a study of the feasibility and costs of establishing an SSN verification system

Tax Reform Act of 1986 (P.L. 99-514) required individuals filing a tax return due after December 31, 1987, to include the taxpayer identification number--usually the SSN--of each dependent age 5 or older.

Commercial Motor Vehicle Safety Act of 1986 (P.L. 99-750) authorized the Secretary of Transportation to require the use of the SSN on commercial motor vehicle operators' licenses.

Higher Education Amendments of 1986 (P.L. 99-498) required that student loan applicants submit their SSN as a condition of eligibility.

Housing and Community Development Act of 1987 (P.L. 100-242) authorized the Secretary of HUD to require disclosure of a person's SSN as a condition of eligibility for any HUD program.

The Family Support Act of 1988 (P.L. 100-485):

• Section 125 required, beginning November 1, 1990, a State to obtain the SSNs of the parents when issuing a birth certificate.
• Section 704(a) required individuals filing a tax return due after December 31, 1989, to include the taxpayer identification number--usually the SSN--of each dependent age 2 or older.

The Technical and Miscellaneous Revenue Act of 1988 (P.L. 100-647):

• Authorized a State and/or any blood donation facility to use SSNs to identify blood donors (205(c)(2)(F)).
• Required that all title II beneficiaries either have or have applied for an SSN in order to receive benefits. This provision became effective with dates of initial entitlement of June 1989 or later. Beneficiaries who refused enumeration were entitled but placed in suspense.

Anti-Drug Abuse Act of 1988 (P.L. 100-690) deleted the $5,000 and $25,000 upper limits on fines that can be imposed for violations of section 208 of the Social Security Act. The general limit of $250,000 for felonies in the U.S. Code now applied to SSN violations under section 208 of the Social Security Act. Also, penalties for misuse of SSNs apply as well in cases where the number is referred to by any other name (e.g., taxpayer identification number (TIN)).

Omnibus Budget Reconciliation Act of 1990 (P.L. 101-508):

• Section 7201 (Computer Matching and Privacy Protection Amendments of 1990) provided that no adverse action may be taken against an individual receiving benefits as a result of a matching program without verification of the information or notification of the individual regarding the findings with time to contest.
• Section 8053, required an SSN for eligibility for benefits from the Department of Veterans Affairs (DVA).
• Section 11112, required that individuals filing a tax return due after December 31, 1991, include the taxpayer identification number--usually the SSN--of each dependent age 1 or older.

Food and Agricultural Resources Act of 1990 (P.L. 101-624), Section 1735:

• Required an SSN for the officers of food and retail stores that redeem Food Stamps.
• Provided that SSNs maintained as a result of any law enacted on or after October 1, 1990, will be confidential and may not be disclosed.

Social Security Independence and Program Improvements Act of 1994 (P.L. 103-296):

• Section 304, authorized the use of the SSN for jury selection.
• Section 314, authorized cross-matching of SSNs and Employer Identification Numbers maintained by the Department of Agriculture with other Federal agencies for the purpose of investigating both food stamp fraud and violations of other Federal laws.
• Section 318, authorized the use of the SSN by the Department of Labor in administration of Federal workers' compensation laws.

Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (P.L. 104-193) (Welfare Reform ):

• Section 111 required the Commissioner of Social Security to develop and submit to Congress a prototype of a counterfeit-resistant Social Security card that: is made of durable, tamper-resistant material (e.g., plastic); employs technologies that provide security features (e.g., magnetic stripe); and provides individuals with reliable proof of citizenship or legal resident alien status.
• Section 111 also required the Commissioner of Social Security to study and report to Congress on different methods of improving the Social Security card application process, including evaluation of the cost and workload implications of issuing a counterfeit-resistant Social Security card for all individuals and evaluation of the feasibility and cost implications of imposing a user fee for replacement cards.
• Section 316 required HHS to transmit to SSA, for verification purposes, certain information about individuals and employers maintained under the Federal Parent Locator Service in an automated directory. SSA is required to verify the accuracy of, correct, or supply to the extent possible, and report to HHS the name, SSN, and birth date of individuals and the employer identification number of employers. SSA is to be reimbursed by HHS for the cost of this verification service. This section also required all Federal agencies (including SSA) to report quarterly the name and SSN of each employee and the wages paid to the employee during the previous quarter.
• Section 317 provided that State child support enforcement procedures require the SSN of any applicant for a professional license, commercial driver's license, occupational license, or marriage license be recorded on the application. The SSN of any person subject to a divorce decree, support order, or paternity determination or acknowledgement would have to be placed in the pertinent records. SSNs are required on death certificates.
• Section 451 provided that, in order to be eligible for the Earned Income Tax Credit, an individual must include on his or her tax return an SSN which was not assigned solely for non-work purposes.

Department of Defense Appropriations Act, 1997 (P.L. 104-208) ( Division C (Illegal Immigration Reform and Immigrant Responsibility Act of 1996) (Immigration Reform)):

• Sections 401-404 provided for 3 specific employment verification pilot programs in which employers would voluntarily participate. In general, the pilot programs would allow an employer to confirm the identity and employment eligibility of the individual. SSA and the Immigration and Naturalization Service (INS) would provide a secondary verification process to confirm the validity of the information provided. SSA would compare the name and SSN provided and advise whether the name and number match SSA records and whether the SSN is valid for employment.
• Section 414 required the Commissioner to report to Congress every year, the aggregate number of SSNs issued to noncitizens not authorized to work, but under which earnings were reported. Also required the Commissioner to transmit to the Attorney General a report on the extent to which SSNs and Social Security cards are used by noncitizens for fraudulent purposes.
• Section 415 authorized the Attorney General to require any noncitizen to provide his or her SSN for purposes of inclusion in any record maintained by the Attorney General or INS.
• Section 656 provided for improvements in identification-related documents; i.e., birth certificates and driver's licenses. These sections require publication of regulations which set standards, including security features and, in the case of driver's licenses, required that an SSN appear on the license. Federal agencies are precluded from accepting as proof of identity, documents which do not meet the regulatory standards.
• Section 657 provided for the development of a prototype Social Security card. The requirements were the same as in Section 111 of the Welfare reform legislation (described above) with the exception that the Comptroller General is also to study and report to Congress on different methods of improving the Social Security card application process.

Department of Defense Appropriations Act, 1997 (P.L. 104-208) (Division C--Illegal Immigration Reform and Immigrant Responsibility Act of 1996) (Immigration Reform):

• Sections 401-404 provided for 3 specific employment verification pilot programs in which employers would voluntarily participate. In general, the pilot programs would allow an employer to confirm the identity and employment eligibility of the individual. SSA and INS would provide a secondary verification process to confirm the validity of the information provided. SSA would compare the name and SSN provided and advise whether the name and number match SSA records and whether the SSN is valid for employment.
• Section 414 required the Commissioner of Social Security to report to Congress every year the aggregate number of SSNs issued to noncitizens not authorized to work, but under which earnings were reported. Also required the Commissioner of Social Security to transmit to the Attorney General a report on the extent to which SSNs and Social Security cards are used by noncitizens for fraudulent purposes.
• Section 415 authorized the Attorney General to require any noncitizen to provide his or her SSN for purposes of inclusion in any record maintained by the Attorney General or INS.
• Section 656 provided for improvements in identification-related documents; i.e., birth certificates and drivers licenses. These sections required publication of regulations which set uniform standards, including security features, and, in the case of drivers licenses, required that an SSN appear on the license. Federal agencies are precluded from accepting as proof of identity documents which do not meet the regulatory standards.
• Section 657 provided for the development of a prototype Social Security card. The requirements are the same as in Section 111 of the Welfare reform legislation (described above) with the exception that the Comptroller General is also to study and report to Congress on different methods of improving the Social Security card application process.

1997 Taxpayer Relief Act of 1997 (P.L. 105-34)

• Section 1090 required an applicant for an SSN under age 18 to provide evidence of his or her parents' names and SSNs in addition to required evidence of age, identity, and citizenship.

Report to Congress on "Options for Enhancing the Social Security Card" released on September 22, 1997.

The Omnibus Consolidated and Emergency Supplemental Appropriations Act of 1999 (P.L. 105-277)

• Section 362 provided that no funds appropriated for the Department of Transportation (DOT) may be used to issue the final regulations required by section 656(b) of the Illegal Immigration Reform and Responsibility Act of 1996. Section 656(b) prohibited Federal agencies from accepting as proof of identification a drivers license that do not meet standards promulgated by the DOT. The standards include a document that contains a Social Security number that can be read electronically or visually and is in a form that includes security features to limit tampering and counterfeiting.

Identity Theft and Assumption Deterrence Act of 1998 (P.L. 105-318)

• Makes identity theft (transferring or using another person's means of identification) a crime, subject to penalties.
• Defines "means of identification" to include name, social security number, date of birth, official State or government issued driver's license or identification number, alien registration number, government passport number, and employer or taxpayer identification number; and
• Establishes the Federal Trade Commission as a clearinghouse to receive complaints, provide informational materials to victims, and refer complaints to appropriate entities, which may include credit bureaus or law enforcement agencies.

Vice President announced new policy to allow victims of domestic violence to change their SSN without proof that the abuser had misused their SSN.

P.L. 105-379 11/12/98 amended the Food Stamp Act, effective June 1, 2000, to require:

• Each State agency that administers the food stamp program to enter into a cooperative arrangement with the Commissioner of Social Security under section 205(r) of the Social Security Act to verify whether food stamp recipients are deceased to ensure that benefits are not issued to deceased individuals.
• The Secretary of Agriculture is to report to Congress and to the Secretary of the Treasury on the progress and effectiveness of the cooperative arrangements established.

October 9, 1999 P.L. 106-69, Department of Transportation (DOT) and Related Agencies Appropriations Act, 2000:

• Section 355 repealed section 656(b) of the Illegal Immigration Reform and Responsibility Act of 1996.

December 14, 1999 P.L. 106-169, the Foster Care Independence Act of 1999:

• Section 209 deems SSA’s privacy standards meet all State privacy standards for purposes of sharing data.

Social Security Number Confidentiality Act of 2000 (P.L. 106-433):

• Section 2 requires the Treasury Secretary to ensure that SSNs are not visible on or through unopened mailings of government checks or other drafts beginning 11/06/03.

DOT and Related Agencies Appropriations Act of 2002 (P.L. 107-87)

• Section 311 provides that no recipient of funds via this Act shall disseminate information, including SSNs, obtained by a State DMV except as authorized by law; Effective 12/18/01.

The Basic Pilot Program Extension and Expansion Act of 2003 (P.L. 108-156)

• Section 2 extends the operation of the pilot programs for an additional 5 years (to a total of 11 years).

• Section 3(a) expands the operation of the pilot programs to all 50 States not later than 12/01/04; provides that employers in all States must be able to participate in the pilot program.

The Intelligence Reform and Terrorism Prevention Act of 2004 (P.L. 108-458)

Section 7213:

• Not later than one year after the date of enactment, requires the Commissioner of Social Security to:

-- Restrict the issuance of multiple replacement Social Security cards to any individual to 3 per year and 10 for the life of the individual. The Commissioner may allow for reasonable exceptions from these limits on a case-by-case basis in compelling circumstances.

-- Establish minimum standards for the verification of documents or records submitted by an individual to establish eligibility for an original or replacement Social Security card, other than for enumeration at birth (EAB).

• Notwithstanding section 205(r) of the Social Security Act and any agreement entered into thereunder, requires the Commissioner to add death indicators to the Social Security number verification systems used by employers and State agencies issuing driver’s licenses and identity cards. The Commissioner may also add death indicators to other verification routines as determined appropriate. The death indicators must be added no later than 18 months after enactment.

• Requires the Commissioner to add fraud indicators to the Social Security number verification systems used by employers and State agencies issuing drivers' licenses and identity cards. The Commissioner may also add fraud indicators to other verification routines as determined appropriate. The fraud indicators must be added no later than 36 months after enactment.

• Requires SSA, in consultation with the Department of Homeland Security, to form an interagency task force for the purpose of further improving the security of Social Security cards and numbers. Not later than 18 months after the date of enactment, the task force must establish security requirements, including standards: for safeguarding cards from counterfeiting, tampering, alteration, and theft; for verifying documents submitted for the issuance of replacement cards; and actions towards increasing enforcement against the fraudulent use or issuance of Social Security numbers and cards. The Commissioner is also required to provide for the implementation of these security requirements.

• Requires the Commissioner to make improvements to the EAB application process as soon as practicable after the date of enactment. These improvements shall be designed to prevent the assignment of Social Security account numbers to unnamed children, the issuance of more than one Social Security number to the same child, and other opportunities for fraudulently obtaining a Social Security number. Not later than one year after enactment, the Commissioner must provide a report to Congress specifying the extent to which these improvements were made.

• Requires the Commissioner to conduct a study to determine options for ensuring the integrity of the EAB process, including methods to reconcile hospital birth records with birth registrations submitted to State and local agencies and information provided to SSA. Not later than 18 months after enactment, the Commissioner must report to the House Committee on Ways and Means and the Senate Committee on Finance on the results of the EAB study, including recommendations for legislative changes as deemed necessary by the Commissioner.

Section 7214:

• Prohibits Federal, State, and local governments from displaying SSNs, or any derivative thereof, on drivers' licenses, motor vehicle registrations, or other identification documents issued by State departments of motor vehicles.

The Real ID Act, (P.L. 109-13)

Table last updated 11/09/05