SF 2390

Conference Committee Report - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to consumer protection; modifying restrictions on the collection and use
of Social Security numbers; amending Minnesota Statutes 2006, section 325E.59,
subdivision 3, by adding a subdivision; Minnesota Statutes 2007 Supplement,
section 325E.59, subdivision 1.

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

Section 1.

Minnesota Statutes 2007 Supplement, 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 used to verify the identity of the individual, is used
solely for that purpose, and it would be impracticable to use another method to verify the
identity of the individual,
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;

(5) deleted text begin print 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. 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 new text begin 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 deleted text begin . deleted 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; 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 consumer
report under 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 pursuant to federal, state,
county, or municipal law or authority 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;
new text end

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

new text begin (v) the request is consistent with the purposes of and made by an entity regulated
under Title V of the federal Gramm-Leach-Bliley Act, United States Code, title 15,
section 6801, et seq.
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) This section applies only to the use of Social Security numbers on or after July
1, 2008.
deleted text end

Sec. 2.

Minnesota Statutes 2006, section 325E.59, subdivision 3, is amended to read:

Subd. 3.

Coordination with other law new text begin and general exclusions new text end .

This section does
not prevent the collection, use, or release of a Social Security number new text begin :
new text end

new text begin (1) new text end as required by state or federal law deleted text begin or the use of a Social Security number for
internal verification or administrative purposes. deleted text end new text begin , or for purposes expressly permitted or
authorized by the federal Fair Credit Reporting Act, United States Code, title 15, section
1681(b), or Title V of the Gramm-Leach-Bliley Act, United States Code, title 15, section
6801, et seq.;
new text end

new text begin (2) for civil or criminal claims or settlement administration, law enforcement,
government, or public safety purposes, including employee background checks;
new text end

new text begin (3) when it is reasonably necessary for fraud prevention or identity verification and
it would otherwise be impracticable to use another method;
new text end

new text begin (4) for internal verification or to administer payroll, health, retirement, or deferred
compensation plans, benefits, or federally or state regulated investment products; or
new text end

new text begin (5) to approve, administer, maintain, or service an account, loan, or mortgage (i)
when the transaction is originated, (ii) for review or management of the account, loan,
or mortgage, or (iii) to be used when the account, loan, or mortgage is later transferred
or sold, provided that the Social Security number is incidental to the larger transfer
or sale and it would be impracticable to use another method to administer, maintain,
or service the account, loan, or mortgage. For the purposes of this clause, "account" is
defined as a checking, savings, or money market account at a federal or state regulated
financial institution, or an open-ended line of credit as defined by the federal Regulation Z
section 226.2 (20).
new text end

Sec. 3.

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

new text begin Sections 1 to 3 are effective July 1, 2008.
new text end