HF 131

2nd Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to consumer protection; restricting the use of Social Security numbers;
amending Minnesota Statutes 2006, section 325E.59, subdivision 1, by adding a
subdivision; repealing Minnesota Statutes 2006, section 325E.59, subdivision 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2006, section 325E.59, subdivision 1, is amended to read:

Subdivision 1.

Generally.

(a) A person or entity, not including a government entity,
may not do any of the following:

(1) publicly post or publicly display in any manner an individual's Social Security
number. "Publicly post" or "publicly display" means to intentionally communicate or
otherwise make available to the general public;

(2) print an individual's Social Security number on any card required for the
individual to access products or services provided by the person or entity;

(3) require an individual to transmit the individual's Social Security number over
the Internet, unless new text begin :
new text end

new text begin (i) new text end the connection is secure or the Social Security number is encrypted deleted text begin , deleted text end new text begin ; and
new text end

new text begin (ii) the Social Security number is necessary to the transaction,
new text end

except as required by titles XVIII and XIX of the Social Security Act and by Code
of Federal Regulations, title 42, section 483.20;

(4) require an individual to use the individual's Social Security number to access an
Internet Web site, unless a password or unique personal identification number or other
authentication device is also required to access the Internet Web site;

deleted text begin (5) print a number that the person or entity knows to be an individual's Social
deleted text end deleted text begin Security number on any materials that are mailed to the individual, unless state or federal
deleted text end deleted text begin law requires the Social Security number to be on the document to be mailed deleted text end deleted text begin . If, in
connection with a transaction involving or otherwise relating to an individual, a person or
entity receives a number from a third party, that person or entity is under no duty to inquire
or otherwise determine whether the number is or includes that individual's Social Security
number and may print that number on materials mailed to the individual, unless the person
or entity receiving the number has actual knowledge that the number is or includes the
individual's Social Security number deleted text end deleted text begin ; deleted text end new text begin (5) send or cause to be sent or delivered any letter,
envelope, or package that displays a Social Security number on the face of the mailing
envelope or package, or from which a Social Security number is visible, whether on the
outside or inside of the mailing envelope or package. A person is further prohibited from
printing a number that the person or entity knows to be an individual's Social Security
number on any materials that are mailed to the individual, unless state or federal law
requires the Social Security number to be on the document to be mailed or as part of
applications and forms sent by mail, including documents sent as part of an application or
enrollment process, or to establish, amend, administer, or terminate an account, contract,
or policy, or to confirm the accuracy of the Social Security number; new text end

(6) assign or use a number as the primary account identifier that is identical to or
incorporates an individual's complete Social Security number; deleted text begin or deleted text end

(7) sell Social Security numbers obtained from individuals in the course of business new text begin .
Nothing in this clause prohibits the sale, transfer, or disclosure of an individual's Social
Security number to a third party if the sale, transfer, or disclosure (i) has no independent
economic value and is incidental to a larger transaction and (ii) is necessary for the
purpose of verifying the identity of the individual new text end new text begin ;
new text end

new text begin (8) lease, loan, trade, or rent an individual's Social Security number to a nonaffiliated
third party, unless (i) the person or entity has the written consent to the disclosure from the
individual, or (ii) the disclosure is required or authorized by federal or state law. Nothing
in this clause prohibits the sale, transfer, or disclosure of an individual's Social Security
number to a third party if the sale, transfer, or disclosure has no independent economic
value and is incidental to a larger transaction and is necessary for the purpose of verifying
the identity of the individual; or
new text end

new text begin (9) refuse to do business with an individual because the individual will not consent to
the disclosure of, or provide, the individual's Social Security number, unless in connection
with the transaction:
new text end

new text begin (i) the person or entity has a permissible purpose to obtain the individual's credit
report under section 604 of the federal Fair Credit Reporting Act, United States Code,
title 15, section 1681(b);
new text end

new text begin (ii) the person or entity is expressly required or authorized by federal or state law to
obtain the individual's Social Security number;
new text end

new text begin (iii) the person or entity has a reasonable basis to believe that the individual is
using a false identity or false documents; or
new text end

new text begin (iv) the business transaction cannot otherwise be completed without the individual's
Social Security number new text end .

deleted text begin Notwithstanding clauses (1) to (5), Social Security numbers may be included in
applications and forms sent by mail, including documents sent as part of an application or
enrollment process, or to establish, amend, or terminate an account, contract, or policy,
or to confirm the accuracy of the Social Security number. Nothing in this paragraph
authorizes inclusion of a Social Security number on the outside of a mailing or in the bulk
mailing of a credit card solicitation offer.
deleted text end

(b) A person or entity, not including a government entity, must restrict access to
individual Social Security numbers it holds so that only employees who require the
numbers in order to perform their job duties have access to the numbers, except as required
by titles XVIII and XIX of the Social Security Act and by Code of Federal Regulations,
title 42, section 483.20.

deleted text begin (c) Except as provided in subdivision 2, this section applies only to the use of Social
Security numbers on or after July 1, 2007.
deleted text end

Sec. 2.

Minnesota Statutes 2006, section 325E.59, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Penalties and remedies. new text end

new text begin A person violating this section is subject to
the penalties and remedies in section 8.31.
new text end

Sec. 3. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, section 325E.59, subdivision 2, new text end new text begin is repealed.
new text end

Sec. 4. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 3 are effective July 1, 2007.
new text end