All too often Social Security Numbers (SSN’s) are used for identification purposes when they shouldn’t be. Many universities use SSN’s as their student ID numbers. In many states, driver’s license numbers are identical to the holders SSN. Most insurance providers print the policy holder’s SSN on their insurance cards.

The problem with all of this is two fold. First, if you lose your wallet it will be very easy for anyone who finds it to steal your identity. Secondly, when you show a form of identification that includes your SSN, do you really know who you’re showing it to or who they will share it with? That receptionist at your doctor’s office could be an ex-con. Probably not but you just never know.

In order for you to protect yourself, you really should know about the laws that regulate the use of SSN’s. Below, you will find a short summary of both federal and state laws on SSN’s. This list may be incomplete but it does list all of the laws that we were aware of by the date of publication. We will periodically update the list as new information becomes available to us, so check back regularly to insure that you have up to date information.

In the table below, items appearing in bold deserve special attention. Either consumers are required to take specific actions to receive the full belfit of the law or the law is counterproductive (It will not be difficult for you to determine which is true). We encourage you to write your elected representative to voice your views on thiese laws.

Name of Law

Year Enacted

Summary

Privacy Act

1974

Provides that no state or local agency can deny benefits to a person who refuses to divulge their Social Security Number. Law has been weakened over the years by legislation that has expanded the legal uses for SSN’s by governmental agencies

Tax Reform Act

1976

Allows local governments to use SSN’s for identification of recipients of public assistance, for motor vehicle registration and for issuing drivers licenses. Allows state and local governmental agencies to use SSN’s to verify an individual’s identity in the administration of income taxes.

Immigration Reform and Control Act

1986

Implemented the use of I-9 forms which employers are required to have employees fill out to prove they are legally eligible to work in the United States. Social Security Cards are one of several documents that are allowed as proof of this eligibility.

Family Educational Rights and Privacy Act

1974

Applies to schools that receive federal funds under applicable Department of Education Programs. The law protects the privacy of student records and implements requirements for the handling and release of confidential records, including SSN’s.

Freedom of Information Act

1966

Forbids the government from denying benefits to individuals that refuse to provide a SSN unless there was a law requiring such disclosure prior to 1975. Federal, State and local agencies are required to notify individuals about how their SSN’s will be used and by what authority they are collecting this information.

26 USC §6109

  

Requires tax payers claiming a dependent who is more than 1 year old to report the dependent’s SSN on their Form 1040

Social Security Act

1935

42 USC §405(c)(2) provides criminal penalties for disclosure of SSN’s in any way that doesn’t comply with federal law. Requires that both parents of a minor disclose their SSN’s when applying for a Social Security Card for their minor child. Forbids the employees of federal agencies from disclosing any SSN’s that they are in receipt of. Allows the states to use SSN’s for identification in the administration of taxes, for public assistance, administration of vehicle registration and for the issuance of driver’s licenses.

42 USC §405(c)2(C)(vi) nullifies certain provisions of the Freedom of Information Act, allowing states that did not require SSN’s prior to 1975, in the administration of the items mentioned above, to now require individuals to disclose their SSN’s solely for the purpose of administering applicable laws and for responding to requests for information from an agency that administers a Federally funded program.

42 USC §602 and 42 USC §607 and 42 USC §1305 penalizes the states by forcing them to forfeit certain federal funds if they don’t require the parents of a new-born to disclose their SSN’s prior to issuing a birth certificate. There is an exemption if the state can show good cause. Also requires that the parents SSN’s not be listed on the birth certificate.

42 USC §653(j) requires state employers to check SSN’s of applicants for employment.

42 USC §666(a)(13) requires states to collect and log SSN’s under certain circumstances. Examples include but are not limited to:

  1. Issuance of Death and related certificates
  2. Provision of records to any individual subject to a support order, paternity determination or a divorce decree.
  3. Applications for certain licenses, including marriage, professional, occupational and drivers licenses.

42 USC §1320b in order to be eligible for benefits under the Social Security Act, each state must require a SSN from each applicant for benefits.

National Voter Registration Act

1993

This is also known as the Motor Voter Act. Implies that SSN’s can not be taken from DMV forms for Federal election applications.

Gramm-Leach Bliley

1999

15 USC §1 Sec 6801-6809 Does not specifically mention SSN’s but does lay down rules that financial institutions must follow to safeguard non-public personal financial information. Provides that financial institutions must give their customers limited opt-out ability with regard to sharing of information and specifically requires these institutions to inform their customers of their privacy policies.

Social Security Number Confidentiality Act

2000

Prohibits the printing of SSN’s on the exterior or interior of unopened mailings that contain checks or other negotiable instruments that are drawn on public funds in the Treasury

Bank Secrecy Act

1970

Banks are allowed to use SSN’s for identification for the collection of payments, making transactions and for other related activities. Requires that banks report "suspicious financial activity" of their customers to the federal government.

Fair and Accurate Credit Transactions Act (FACTA)

2003

Although FACTA does not specifically address the handling of SSN’s, it does provide rule for the dissemination of information by financial institutions (which are broadly defined). This law specifically weakens many state privacy laws by permanently barring the states from enacting stronger privacy regulations that impact affiliate sharing within the credit industry.

States

Law

Summary

Alaska

Chapter 40, SLA 01

Drivers license applicants must provide their SSN’s but the SSN can’t appear on a driver’s license

 

Chapter 54, SLA 2001

Specifies SSN information requirements relating to federal child support enforcement orders. Specifically outlines employer requirements on reports about employees.

Arizona

Rev. Stat. Sec. 15-1823

Prohibits colleges and universities from issuing student ID’s that contain all or part of a SSN, without the express permission of the student

California

Cal. Civ. Code sec. 1795.85

Forbids the use of another persons SSN to get government services

 

Health and Safety code sec. 443.31

If a person’s SSN appears in their patient records, it must also be included on their discharge papers.

 

Cal. Vehicle Code sec. 12801

SSN’s must not appear on driver’s licenses, driver’s permits or be included in the driver’s license magnetic strip.

 

Social Security Confidentiality (SB 168)

Law took effect on July 1, 2002 and places strict restrictions on the use of SSN’s for any company doing business within California. Law was weakened by certain provisions in the National Banking Act, which made permanent the provisions in the FCRA that prevent the states from enacting laws that will impact the credit industry.

Florida

Fla. Stat. Ann. Sec. 659.062

Banks that have automated funds transfer systems are forbidden from using SSN’s as customer ID numbers.

Georgia

Ga. Code Ann. Sec. 68B-207

Requires that state issued ID cards for people without a driver’s license, use the holders SSN as the ID number.

Illinois

625 ILCS

5/2-123(h)

Forbids the Secretary of State from disclosing SSN’s to parties outside the government.

Indiana

Ind. Code Ann. Sec. 4-1-8-1

Forbids state agencies from requesting SSN’s unless required to do so by federal law

Iowa

Iowa Code. Ann. Sec. 321.182

Requires the State Department of Motor Vehicles to notify driver’s license applicants that they can request a number other than their SSN be used as their driver’s license number.

Kentucky

Ky. Rev. Stat. Sec. 186.412 (2) and (3)

Requires driver’s license applicants to provide their SSN’s but forbids their use on any issued driver’s license

Maine

10 Me. Rev. Stat. 1271-2

Forbids the printing of SSN’s on ATM cards, credit cards and customer service cards with the exception of medical insurance company cards.

 

Title 29, sec. 539-A

Allows the Secretary of State to request and use SSN’s as permanent operator license numbers.

Massachusetts

Mass. Gen. Laws Ann. Ch. 30A, sec. 13A

Requires citizens to provide SSN’s to receive any kind of state issued license but allows them to request that their SSN not be printed on the license

Michigan

HB 4052 and HB 4644

These two bills effectively prevent the use of SSN’s as identification numbers for medical insurance and HMO’s and forbid the printing of SSN’s on their ID cards.

Minnesota

Minn. Stat. Ann. Sec. 171.06

Requires SSN’s to bee provided for "heavy vehicle" operator’s licenses but not for automobile or small truck driver’s licenses

New Hampshire

N.H. Rev. Stat. Ann. Sec. 263:40-a

Requires SSN’s be provided to obtain a driver’s license but allows applicants to request a waiver of the requirement.

New York

N.Y. Educ. Code sec. 52-b

Forbids public schools and colleges from using SSN’s as student identification numbers.

New Jersey

NJ. Rev. Stat. Sec. 39:2-3.3

Restricts the state DMV from releasing SSN’s except to comply with federal or state law.

Ohio

Ohio Rev. Code Ann. 1349.17

With few exceptions, forbids merchants from collecting SSN’s for credit card purchases.

Oklahoma

Okla. Sta. Ann. Title 74, sec. 3111

Forbids state agencies from requiring or using SSN’s unless the use is for Social Security benefits or administration or unless a SSN was required prior to 1974.

Rhode Island

R.I. Gen. Laws 6-13-17

Forbids businesses and merchants from requiring SSN’s for purchases. Forbids merchants from logging SSN’s on checks.

 

Sec. 42-72.5-2(6)

Forbids the state from issuing student ID’s that involve SSN’s.

 

Sec. 16-38-5.1

Forbids state colleges and universities from publicly displaying SSN’s and forces them to stop using SSN’s as student identification numbers by July, 2007.

Virginia

Va. Code. Sec. 2.1-385

Forbids the collection of SSN’s for services or other purchased activities unless required

 

Sec. 46.2-323

Requires SSN’s to be provided to obtain a driver’s license, and requires their display on the license.

 

Sec. 24.2-418

Requires an SSN to be furnished for voter registration.

 

Sec. 24.2-416.5

Forbids anyone assisting a person in filling out a voter registration form from disclosing the registering person’s SSN to any third parties.

 

Sec. 22.1-260

Any student in public school is required to provide a SSN within 90 days of enrollment unless The Superintendent of Schools waives the requirement because the student is ineligible to receive a SSN.

 

Sec. 46.2-342

Allows drivers to select a number other than their SSN for their driver’s license number.

 

Sec. 46.2-323

Provides that the DMV can allow individuals to refuse the provision of personal information to obtain a license "for good cause"

Washington

Wash. Rev. Code Ann. Sec. 70.170

Enrollees is state health care finance programs must provide identification that meets standards of "uniqueness" in excess of SSN’s.

Wisconsin

Wisc. Stat. Ann Sec. 118.169

Allows schools and universities to require SSN’s but forbids their use in student ID numbers.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.