ADVISORY

FROM THE COMMITTEE ON WAYS AND MEANS
Subcommittee on Social Security

FOR IMMEDIATE RELEASE, Contact: (202) 225-9263
July 10, 2000
No. SS-21


Shaw Announces Hearing on
 Protecting Privacy and Preventing Misuse
of the Social Security Number

Congressman E. Clay Shaw, Jr., (R-FL), Chairman, Subcommittee on Social Security of the Committee on Ways and Means, today announced that the Subcommittee will hold a field hearing on protecting privacy and preventing misuse of the Social Security number (SSN). The hearing will take place on Monday, July 17, 2000, in the City of Delray Beach, City Commission Chamber, 100 N.W. 1st Avenue, Delray Beach, Florida, beginning at 9:00 a.m.

In view of the limited time available to hear witnesses, oral testimony at this hearing will be from invited witnesses only. However, any individual or organization not scheduled for an oral appearance may submit a written statement for consideration by the Committee and for inclusion in the printed record of the hearing.

BACKGROUND:

The SSN was created in 1936 solely for the purpose of tracking workers' Social Security earnings records. However, use of the SSN has expanded significantly beyond its original purpose, and today, it is commonly used as a personal identifier. For example, the SSN is required, by law, for the administration of several Federal programs, such as the income tax, the Food Stamp program, and Medicaid. SSNs are also commonly used in the private sector. For instance, many businesses require that individuals disclose their SSN as a condition for doing business. According to the Social Security Administration (SSA), the SSN is the single-most widely used record identifier in the public and private sectors.

Some believe that the expanded use of the SSN benefits the public by improving access to financial and credit services in a timely manner, reducing administrative costs, and improving record-keeping so consumers can be contacted and identified accurately. Others argue that the pervasive use of SSNs makes them a primary target for fraud and misuse. According to SSA, allegations of fraudulent SSN use such as so-called, "identity theft," increased from 26,531 cases in fiscal year 1998 to 62,000 in fiscal year 1999. Since fiscal year 1999, approximately 1,000 more allegations have been reported each month. In addition to concerns about SSN misuse, privacy concerns have also been raised as companies increasingly share and sell personal information without the customer's knowledge or consent. As a result of these concerns, several proposals have been introduced that would restrict SSN use and protect privacy.

In announcing the hearing, Chairman Shaw stated: "People should have the right to protect sensitive private information, such as their Social Security number. The SSN was never intended to be a personal identifier, yet it has clearly taken on that role over the years. Although the widespread use of SSNs helps individuals in many ways, it also raises serious concerns about privacy and misuse, such as identity theft. We must take steps to protect privacy and prevent fraud while maintaining the legitimate uses of the SSN which benefit the public."

FOCUS OF THE HEARING:

The hearing will focus on the widespread use and misuse of SSNs in the public and private sectors. The hearing will also examine legislative proposals aimed at combating SSN misuse and protecting privacy. The ramification of these proposals on businesses, governments, and consumers will also be examined.

DETAILS FOR SUBMISSION OF WRITTEN COMMENTS:

Any person or organization wishing to submit a written statement for the printed record of the hearing should submit six (6) single-spaced copies of their statement, along with an IBM compatible 3.5-inch diskette in WordPerfect or MS Word format, with their name, address, and hearing date noted on a label, by the close of business, Monday, July 31, 2000, to A.L. Singleton, Chief of Staff, Committee on Ways and Means, U.S. House of Representatives, 1102 Longworth House Office Building, Washington, D.C. 20515. If those filing written statements wish to have their statements distributed to the press and interested public at the hearing, they may deliver 200 additional copies for this purpose to the district office of Representative E. Clay Shaw, Jr., 1512 East Broward Blvd., Suite 101, Ft. Lauderdale, Florida 33301, by close of business Friday, July 14, 2000.

FORMATTING REQUIREMENTS:

Each statement presented for printing to the Committee by a witness, any written statement or exhibit submitted for the printed record or any written comments in response to a request for written comments must conform to the guidelines listed below. Any statement or exhibit not in compliance with these guidelines will not be printed, but will be maintained in the Committee files for review and use by the Committee.

1. All statements and any accompanying exhibits for printing must be submitted on an IBM compatible 3.5-inch diskette in WordPerfect or MS Word format, typed in single space and may not exceed a total of 10 pages including attachments. Witnesses are advised that the Committee will rely on electronic submissions for printing the official hearing record.

2. Copies of whole documents submitted as exhibit material will not be accepted for printing. Instead, exhibit material should be referenced and quoted or paraphrased. All exhibit material not meeting these specifications will be maintained in the Committee files for review and use by the Committee.

3. A witness appearing at a public hearing, or submitting a statement for the record of a public hearing, or submitting written comments in response to a published request for comments by the Committee, must include on his statement or submission a list of all clients, persons, or organizations on whose behalf the witness appears.

4. A supplemental sheet must accompany each statement listing the name, company, address, telephone and fax numbers where the witness or the designated representative may be reached. This supplemental sheet will not be included in the printed record.

The above restrictions and limitations apply only to material being submitted for printing. Statements and exhibits or supplementary material submitted solely for distribution to the Members, the press, and the public during the course of a public hearing may be submitted in other forms.

Symbol to Show Committee Seeks to Assist Persons with Disabilities at the Committee's facilities.The Committee seeks to make its facilities accessible to persons with disabilities. If you are in need of special accommodations, please call 202-225-1721 or 202-226-3411 TTD/TTY in advance of the event (four business days notice is requested). Questions with regard to special accommodation needs in general (including availability of Committee materials in alternative formats) may be directed to the Committee as noted above.