(D) RULE OF CONSTRUCTION.—For pur-
poses of bringing any civil action under sub-
paragraph (A), nothing in this Act shall be con-
strued to prevent an attorney general of a State
from exercising the powers conferred on the at-
torney general by the laws of that State to con-
duct investigations, administer oaths and affir-
mations, or compel the attendance of witnesses
or the production of documentary and other evi-
dence.
(E) VENUE; SERVICE OF PROCESS.—Any
action brought under this section may be
brought in any district court of the United
States that meets applicable requirements relat-
ing to venue under section 1391 of title 28,
United States Code. In an action brought under
this section, process may be served in any dis-
trict in which the defendant is an inhabitant or
may be found.
(g) UNFAIR OR DECEPTIVE ACT OR PRACTICE.—Any
person who refuses to do business with an individual be-
cause the individual will not consent to the receipt by such
person of the social security account number of such indi-
vidual shall be considered to have committed an unfair or
deceptive act or practice in violation of section 5 of the
Federal Trade Commission Act (15 U.S.C. 45). Action
may be taken under such section 5 against such a person.
SEC. 103. NEW CRIMINAL PENALTIES FOR MISUSE OF SO-
CIAL SECURITY ACCOUNT NUMBERS.
(a) SALE AND PURCHASE OF SOCIAL SECURITY AC-
COUNT NUMBERS.—Section 208 of the Social Security Act
(42 U.S.C. 408) is amended—
(1) in subsection (a)(8), by striking ‘‘or’’ and
by inserting ‘‘, or knowingly sells or purchases’’
after ‘‘the disclosure of’’;
(2) in subsection (c), by striking the last sen-
tence;
(3) by redesignating subsection (d) as sub-
section (e); and
(4) by inserting after subsection (c) the fol-
lowing new subsection:
‘‘(d)(1) For purposes of subsection (a)(7), the term
‘social security account number’ means a number assigned
by the Commissioner of Social Security under section
205(c)(2) whether or not, in actual use, such number is
called a social security account number.
‘‘(2) For purposes of subsection (a)(8), the term ‘sell’
in connection with a social security account number means
to obtain, directly or indirectly, anything of value in ex-
change for such number. Such term does not include the
submission of such number as part of the process for ap-
plying for any type of Government benefits or programs
(such as grants or loans or welfare or other public assist-
ance programs). Such term also does not include a trans-
fer of such number as part of a data matching program
under the Computer Matching and Privacy Protection Act
and the amendments made thereby.
‘‘(3) For purposes of subsection (a)(8), the term ‘pur-
chase’ in connection with a social security account number
means to provide, directly or indirectly, anything of value
in exchange for such number. Such term does not include
the submission of such number as part of the process for
applying for any type of Government benefits or programs
(such as grants or loans or welfare or other public assist-
ance programs). Such term also does not include a trans-
fer of such number as part of a data matching program
under the Computer Matching and Privacy Protection Act
and the amendments made thereby.’’.
(b) ADDITIONAL PROVISIONS.—
(1) IN GENERAL.—Section 208(a) of such Act
is amended further—
(A) in paragraph (8), by adding ‘‘or’’ at
the end; and
(B) by inserting after paragraph (8) the
following new paragraphs:
‘‘(9) offers, for a fee, to acquire for any indi-
vidual, or to assist in acquiring for any individual,
an additional social security account number or a
number that purports to be a social security account
number; or
‘‘(10) being an officer or employee of any agen-
cy of the Federal Government or of a State or polit-
ical subdivision thereof in possession of any individ-
ual’s social security account number, willfully acts or
fails to act so as to cause a violation by such agency
of clause (vi)(II), (viii)(V), (x), or (xi) of section
205(c)(2)(C);’’.
(2) EFFECTIVE DATES.—Section 208(a)(9) of
the Social Security Act (added by paragraph (1))
shall apply with respect to violations occurring after
the date of the enactment of this Act. Section
208(a)(10) of such Act (added by paragraph (1))
shall apply with respect to violations occurring on an
after the effective date applicable with respect to
such violations under section 101.
SEC. 104. EXTENSION OF CIVIL MONETARY PENALTY AU-
THORITY.
(a) TREATMENT OF WITHHOLDING OF MATERIAL
FACTS.—
(1) CIVIL PENALTIES.—Section 1129(a)(1) of
the Social Security Act (42 U.S.C. 1320a–8(a)(1)) is
amended in the first sentence—
(A) by striking ‘‘who’’ and inserting
‘‘who—’’;
(B) by striking ‘‘makes’’ and all that fol-
lows through ‘‘shall be subject to’’ and inserting
the following:
‘‘(A) makes, or causes to be made, a statement
or representation of a material fact, for use in deter-
mining any initial or continuing right to or the
amount of monthly insurance benefits under title II
or benefits or payments under title XVI, that the
person knows or should know is false or misleading,
‘‘(B) makes such a statement or representation
for such use with knowing disregard for the truth,
or
‘‘(C) omits from a statement or representation
for such use, or otherwise withholds disclosure of, a
fact which the individual knows or should know is
material to the determination of any initial or con-
tinuing right to or the amount of monthly insurance
benefits under title II or benefits or payments under
title XVI and the individual knows, or should know,
that the statement or representation with such omis-
sion is false or misleading or that the withholding of
such disclosure is misleading,
shall be subject to’’;
(C) by inserting ‘‘or each receipt of such
benefits while withholding disclosure of such
fact’’ after ‘‘each such statement or representa-
tion’’;
(D) by inserting ‘‘or because of such with-
holding of disclosure of a material fact’’ after
‘‘because of such statement or representation’’;
and
(E) by inserting ‘‘or such a withholding of
disclosure’’ after ‘‘such a statement or rep-
resentation’’.
(2) ADMINISTRATIVE PROCEDURE FOR IMPOS-
ING PENALTIES.—Section 1129A(a) of such Act (42
U.S.C. 1320a–8a(a)) is amended in the first
sentence—
(A) by striking ‘‘who’’ and inserting
‘‘who—’’; and
(B) by striking ‘‘makes’’ and all that fol-
lows through ‘‘shall be subject to,’’ and insert-
ing the following:
‘‘(1) makes, or causes to be made, a statement
or representation of a material fact, for use in deter-