Office of Performance Evaluations

Use of Social Security Numbers for Drivers' Licenses, Permits, and Identification Cards

Released March 2005
Federal Mandate Review 05-01HTD

Full report (PDF)

The text of the report is provided below. The full report with exhibits is available in PDF (see above), and a limited number of printed copies are available from the Office of Performance Evaluations (OPE). Specific questions about the report should be directed to OPE. Any general questions need to be directed to the Idaho Transportation Department.

Federal Mandate Review

Federal law requires all states to collect Social Security numbers (SSN) from driver's license applicants who have a Social Security number. Idaho has formalized this mandate in statute, and non-adherence to this requirement could jeopardize over $49 million of federal grants. Federal law both mandates and allows the use of the SSN for a myriad of other non-Social Security purposes, including tax identification, general public assistance, and law enforcement. While federal law requires the collection of SSNs for drivers' licenses, Idaho's collection of these numbers for issuance of identification cards is not currently required by federal law. Pending federal legislation may, however, change that.

Because of the growing problem of identity theft, states have taken measures in recent years to safeguard and limit the disclosure and use of SSNs and other personal information. These efforts have included prohibiting denial of goods or services for refusal to disclose a Social Security number and implementing restrictions on how private and governmental entities can use SSNs. Idaho Code makes it unlawful to use someone else's personal information, including the SSN, without authorization and with the intent to obtain credit, money, goods, or services.

At Issue

The Office of Performance Evaluations was asked to answer several questions regarding federal requirements relating to SSNs and its uses for non-Social Security purposes (see Appendix A):

1. Can US citizens avoid being issued a Social Security number? If so, based on what grounds?
2. Are there provisions in federal laws that require the SSN to be used for non-Social Security purposes?
3. Are there federal laws or regulations that mandate the state of Idaho to require the SSN for application for a state driver's license, driver's permit, or identification card?
4. If so, can the state remove this requirement without federal sanction?
5. Can the State of Idaho prohibit the use of the SSN for non-Social Security purposes?

Federal Legal Requirements

Question 1: Can US citizens avoid being issued a Social Security number? If so, based on what grounds?

Answer: Yes, individuals can avoid being issued a Social Security number simply by not applying for one, and parents can avoid SSNs being issued to their children by not opting for an automatic number when registering a birth. However, without exception, individuals applying for Social Security benefits are required by federal law to obtain a Social Security number.

Additional Information: The Social Security Act was signed into law by President Franklin D. Roosevelt in 1935. This law created a social insurance program to provide benefits to workers upon retirement based on earnings during their working years. In 1936, the Social Security Board began issuing SSNs to individuals as a method for employers to account for workers' earnings, upon which retirement benefits are based.

Non-Social Security Uses of the Social Security Number

Question 2: Are there provisions in federal laws that require the SSN to be used for non-Social Security purposes?

Answer: Yes, many federal laws require the SSN to be used for non-Social Security purposes. For example, under federal laws passed in 1990, the US Department of Veterans Affairs requires individuals to provide their SSN as a condition of eligibility for compensation or pension benefits programs.

1976 amendments to the Social Security Act authorized states to use the SSN for many purposes not directly related to receiving Social Security benefits. As a result, the SSN may be required as a condition of eligibility for federal programs such as Temporary Assistance for Needy Families (TANF) and food stamps. A limited list of federal laws between 1976 and 1998 allowing or requiring the use of the SSN is presented in Appendix B.

Additional Information: According to the US Government Accountability Office, the number of federal agencies and others relying on the SSN as an identifier has grown beyond the original intent. This relates to numerous federal laws that require the collection of SSNs, in addition to President Franklin D. Roosevelt's 1943 Executive Order directing federal agencies to use the SSN rather than create new identification numbers or systems.

State Drivers' Licenses and the Social Security Number

Questions 3: Are there federal laws or regulations that mandate the State of Idaho to require the SSN for application for a state driver's license, driver's permit, or identification card?

Answer: Yes, federal law requires SSNs to be collected as part of applications for drivers' licenses and permits, but not for identification cards.

1996 and 1997 amendments to the Social Security Act require states to adopt laws governing the recording of SSNs on applications for licenses and permits of many kinds-including professional, driver's, occupational, and recreational licenses-for the enforcement of child support orders.

Idaho law requires applicants for drivers' licenses and permits to provide their SSN as part of the application process. Idaho Code has required collection of SSNs on driver's license applications since 1989. If an applicant has not been assigned a Social Security number, Idaho Code requires the applicant to:

• Provide written verification from the Social Security Administration that the applicant does not have a Social Security number
• Submit a birth certificate, passport, or other evidence of identity, and
• Submit proof of legal presence in the United States

Idaho law requires applicants for identification cards to provide their SSN. We could find no federal law currently requiring the collection of SSNs for state identification cards. However, pending federal legislation may establish this requirement. Idaho Code requires the same standards of documentation for identification cards as are required for drivers' licenses.

Additional Information: According to the Government Accountability Office, as of December 2001, nearly all motor vehicle agencies collected SSNs in fulfillment of federal laws governing state's child support enforcement. The state of Michigan unsuccessfully challenged the federal law requiring motor vehicle agencies to collect SSNs in federal court in 2001.

In 2004, Congress passed legislation to establish and certify, within 18 months, minimum requirements for drivers' licenses and personal identification cards, including standards for documentation. The REAL ID Act of 2005 (HR 418), currently pending in Congress, proposes to further strengthen this law through additional verification measures.

Question 4: Can the state remove the requirement to collect SSNs for drivers' licenses without federal sanction?

Answer: No, if Idaho were to remove the requirement to collect SSNs for drivers' licenses, the state would be out of compliance with federal law, and could ultimately jeopardize annual federal child support enforcement (CSE) and Temporary Assistance for Needy Families (TANF) block grants. Officials from the Idaho Department of Health and Welfare reported that in fiscal year 2004 the department received nearly $14 million from CSE and over $35 million from TANF. Department officials said the loss of these federal dollars would prevent the collection of millions of dollars in child support payments.

Idaho's participation in the National Driver Register -which allows Idaho to determine if an applicant has a suspended license in a different state, a procedure required by Idaho Code -would also be affected by discontinuance of this requirement. Federal law requires states choosing to participate in the National Driver Register-including Idaho-to supply collected SSNs of all drivers subject to the Register.

Additional Information: As shown in Exhibit 1, all of Idaho's six neighboring states require applicants to provide their SSNs as a condition for a driver's license. Like Idaho, none of these states currently print the number on the card itself. An official from Montana indicated that driver's license cards may have encoded Social Security information, such as in a barcode. Idaho Department of Transportation officials told us that such information is not contained in the driver's license card issued in Idaho.

Some state motor vehicle agencies are assisting with the implementation of the Help America Vote Act of 2002 by sharing driver's license numbers or "last four" digits of the SSN with appropriate voter registration agencies.

Prohibiting the Use of the Social Security Number

Question 5: Can the state of Idaho prohibit the use of the SSN for non-Social Security purposes?

Answer: The response to this question is provided in two categories: (1) public sector purposes, and (2) private sector purposes.

Public Sector

The federal Drivers Privacy Protection Act of 1994 outlined permissible uses for personal information collected by state motor vehicle agencies. This law allows states to determine the extent of information disclosure for specific activities, including:

• Government functions
• Civil, criminal, administrative, or arbitral proceedings in any federal, state, or local court or agency
• Research or statistical reporting, so long as personal information is not published, re-disclosed, or used to contact individuals
• Claims investigations by insurer or insurance support organizations
  According to the US Government Accountability Office, this federal law has restricted the ability of information resellers to obtain SSNs from driver records, except for permissible uses.

Idaho Code, mirroring this law, limits how personal information contained in motor vehicle records can be used and sets out permissible uses. For instance, personal information such as an individual's photograph, signature, SSN, and medical information cannot be disclosed without the written consent of the individual, except for permitted uses. These permitted uses include use by any government, court, or law enforcement agency to carry out its functions, in matters of driver safety and theft, or motor vehicle performance.

Montana is an example of a neighboring state that limits how SSNs can be used. Montana law specifically prohibits its driver services agency from disclosing SSNs collected in the driver licensing process for either jury lists or selective service.

Private Sector

Idaho does not have laws that specifically address or restrict the use of SSNs by private sector entities which have obtained such information with permission, such as medical care providers to coordinate services or businesses to establish credit for potential customers.

The US Government Accountability Office reports there are no federal laws that impose broad restrictions on the use of the SSN for non-Social Security purposes, and businesses that request the number as a condition for receiving services may deny those services if the applicant refuses to provide the number. Further, although the Social Security Act protects against unauthorized disclosure of SSNs, this law applies to governmental uses of the SSN and generally does not apply to private sector business transactions.

Measures Other States Have Taken

The National Conference of State Legislatures reports the availability of SSNs encourages identity theft and fraud. Since 2003, at least 25 states have taken legislative action addressing the use of SSNs. For example:

• Utah prohibits commercial firms from sale or disclosure of nonpublic personal information, including SSNs, without notice
• Colorado prohibits recording SSNs when accepting a check from a consumer
• New Mexico's Privacy Protection Act requires companies requiring SSNs to develop policies limiting and enforcing protected access to the numbers
• Maine and Michigan each prohibit the denial of goods or services to an individual who refuses to disclose their SSN, except when required by law
• California restricts how individuals and non-governmental entities may use SSNs and has developed recommended practices for private and public entities to protect the confidentiality of SSNs

Idaho Transportation Department's Collection and Use of Social Security Numbers

Idaho Code requires the Idaho Transportation Department to collect personal information, including SSNs, of applicants for drivers' licenses. The department reports providing access to driver information in several ways to different state entities:

Child Support Enforcement Access

Idaho Transportation Department has granted full access to electronic driver records-including SSNs-and the ability to directly suspend licenses to a limited number of Child Support Enforcement staff of the Department of Health and Welfare. This allows enforcement personnel to efficiently carry out the provisions mandated by Social Security Act (as amended in 1996 and 1997) and by Idaho Code.

Law Enforcement and Department of Health and Welfare

Authorized officials from law enforcement and the Department of Health and Welfare, are given read-only access to entire electronic driver records-including SSNs-maintained by the Idaho Transportation Department, Division of Motor Vehicles. For example, law enforcement personnel can quickly access this information during traffic stops. This information is also used by the Department of Health and Welfare's fraud investigations unit.

Judiciary and Other Official State Business

Limited access to driving records-from which sensitive information such as the SSN and address have been censored-are available online for the Judiciary and authorized staff of state agencies conducting state business. This allows, for instance, judges to verify a defendant's driving record from the bench during sentencing or state agencies to verify a prospective employee's driving record without disclosing sensitive personal information.

Protection of Personal Information-Identity Theft

It is of increasing importance to safeguard against theft and misuse of personal information such as SSNs, date of birth, credit card numbers, and PINs (personal identification numbers). The Idaho Office of the Attorney General states that "identity theft occurs when someone uses your personal information . . . without your permission, to obtain goods, services, or money in your name." These types of acts are unlawful under Idaho Code.

Appendix C provides information offered by the Federal Trade Commission regarding how personal information can be misused and how to reduce the risks.

Pending Federal Legislation

Currently, there are many pieces of federal legislation pending in Congress regarding SSNs and personal information related to misuse, Medicare, identity theft, and legal and illegal immigration. Examples include S 116 (the Privacy Act), HR 368 (the Driver's License Security and Modernization Act), and HR 418 (the REAL ID Act). Of these, the US House of Representatives recently approved the REAL ID Act, which proposes to strengthen requirements to obtain drivers' licenses and identification cards.

According to the Congressional Budget Office, the REAL ID Act contains no new private sector mandates and would make grants available to states to cover required costs, which are not expected to exceed the Unfunded Mandates Reform Act threshold. However, the National Conference of State Legislatures opposes the REAL ID Act because it would impose more than a dozen security and data mandates on states and does not guarantee that funding will be provided. The National Governor's Association and the American Association of Motor Vehicle Administrators believe current federal law offers the best course for ensuring the security and integrity of state driver licensing and identification processes. Idaho Transportation Department officials said they have not determined the potential fiscal impact to Idaho of the REAL ID Act of 2005.

Conclusion

Social Security numbers and other personal information are required by federal and state law to be collected as part of the application process for many types of licenses. Attempts to remove this requirement at the state level could result in the loss of millions of federal dollars for child support enforcement and Temporary Assistance for Needy Families (TANF) block grants.

Federal and state laws limit how personal information can be disclosed without written consent of the individual. However, these limitations generally only apply to public sector agencies. Therefore, the Idaho Legislature may wish to consider measures other states have taken to limit and safeguard collection and use of SSNs by the private sector.

Acknowledgements

We appreciate the cooperation and assistance we received from the Idaho Transportation Department, the Department of Health and Welfare, the Idaho Attorney General's Office, and the US Social Security Administration (Caldwell office) in conducting this study. We also appreciate the input we received from the Montana Department of Justice, the Nevada Department of Motor Vehicles, the Oregon Department of Transportation, the Utah Department of Public Safety, the Washington Department of Licensing, and the Wyoming Department of Transportation.

Paul Headlee (project lead) and Rachel Johnstone of the Office of Performance Evaluations conducted the review. Ned Parrish of the Office of Performance Evaluations performed the quality control review on the project.