Ending wrongful invalidation of social security account numbers

(a) Ending wrongful invalidation of social security account numbers Section 1106 of the Social Security Act (42 U.S.C. 1306) is further amended by adding after subsection (j) the following: (k) Wrongful invalidation of social security account numbers prohibited; civil penalties; investigation; and report (1) In general No individual may cause the social security account number of an individual to return a non-verified or invalid response in any social security account number verification system or service operated by the Social Security Administration, including by cancelling, voiding, deleting, destroying, rescinding, inactivating, suspending, flagging with a special indicator code or other code, or adding to the Death Master File the social security account number of an individual, unless— (A) there is sufficient evidence to determine that the individual— (i) has died; (ii) meets the criteria for a code associated with identity theft or use of a social security account number for fraudulent purposes; (iii) meets the criteria for a code associated with obtaining a social security account number through fraudulent means or a false identity; (iv) meets the criteria for marking the social security account number of such individual as void; or (v) meets the criteria for changing their social security account number; or (B) the action is for the sole purpose of correcting a demonstrable administrative or clerical error. (2) Determinations For the purpose of determining whether an individual has died or meets the criteria described in clauses (ii), (iii), (iv), or (v) of paragraph (1)(A), the Commissioner of Social Security shall use the subregulatory guidance that was in effect on January 19, 2025, including the special indicator codes and Numident codes that were in effect on such date. (3) Civil penalties (A) In general An individual whose social security account number is rendered non-verified or invalid in violation of paragraph (1), and who suffers harm as a result of such non-verification or invalidation, may bring a civil action for injunctive relief and damages against the United States or the officer or employee of the United States who violated paragraph (1) in an appropriate district court of the United States. (B) Damages In any action brought under subparagraph (A), upon a finding of liability on the part of the defendant, the defendant shall be liable to the plaintiff in an amount equal to the sum of— (i) the greater of— (I) $5,000; or (II) the sum of— (aa) the actual damages sustained by the plaintiff as a result of the violation of paragraph (1), plus (bb) if appropriate, punitive damages, plus (ii) the costs of the action, plus (iii) reasonable attorneys fees, except that if the defendant is the United States, reasonable attorneys fees may be awarded only if the plaintiff is the prevailing party. (C) Period for bringing an action Notwithstanding any other provision of law, an action to enforce any liability established under this section may be brought, without regard to the amount in controversy, at any time within 2 years after the date of discovery by the plaintiff of the violation of paragraph (1) relating to such plaintiff. (D) Notification of criminal charges If any individual is criminally charged by indictment or information for violating paragraph (1), the Commissioner of Social Security shall notify the individual whose account number was rendered non-verified or invalid in violation of such paragraph as soon as practicable. The Commissioner shall also notify such individual if a Federal or State agency (upon notice to the Commissioner by such Federal or State agency) proposes an administrative determination as to disciplinary or adverse action against an employee arising from the employee’s action in violation of paragraph (1). The notice described in this subsection shall include the date of such violation and the rights of the individual under such administrative determination. (4) Investigation and report (A) Investigation The Inspector General of the Social Security Administration shall investigate each violation of paragraph (1). (B) Treatment of disclosure or access For the purposes of this subsection, the Inspector General may, if the Inspector General determines appropriate, treat a series of violations of paragraph (1) as a single violation. (C) Report Not later than 30 days after the Inspector General becomes aware of a violation of paragraph (1), the Inspector General shall submit to Congress a report on such violation, which shall include a detailed description of the violation, including— (i) an assessment of the effect on the individual of the social security account number of such individual being rendered non-verified or invalid; and (ii) any effect on the Social Security Administration’s ability to carry out its statutory responsibilities with respect to such individual. (5) GAO study Not later than 1 year after the date of enactment of this Act, the Comptroller of the United States shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report including the following information: (A) The results of a study on the effects of the changes made to section 1106 of the Social Security Act by the amendments in this section. (B) A summary of any investigations conducted under paragraph (3). (C) Any civil actions brought under paragraph (2), including the results of any such civil action.. (b) Effective date The amendments made by this section shall apply to violations of section 1106(k)(1) of the Social Security Act occurring on or after the date of enactment of this Act.