I

106TH CONGRESS

2D SESSION H. R. 4857

To amend the Social Security Act to enhance privacy protections for individuals, to prevent fraudulent misuse of the Social Security account number,

and to provide additional safeguards for Social Security and Supplemental Security Income beneficiaries with representative payees, and

for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JULY 13, 2000

Mr. SHAW (for himself, Mr. KLECZKA, Mr. FOLEY, Mr. MATSUI, Mr. SAM

JOHNSON of Texas, Mr. WELLER, and Mr. HAYWORTH) introduced the

following bill; which was referred to the Committee on Ways and Means,

and in addition to the Committees on the Judiciary, Banking and Financial Services, and Commerce, for a period to be subsequently determined

by the Speaker, in each case for consideration of such provisions as fall

within the jurisdiction of the committee concerned

A BILL

To amend the Social Security Act to enhance privacy protections for individuals, to prevent fraudulent misuse of

the Social Security account number, and to provide additional safeguards for Social Security and Supplemental

Security Income beneficiaries with representative payees,

and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

2 (a) SHORT TITLE.—This Act may be cited as the

3 ‘‘Privacy and Identity Protection Act of 2000’’.

4 (b) TABLE OF CONTENTS.—The table of contents is

5 as follows:

Sec. 1. Short title and table of contents.

Sec. 2. Findings.

TITLE I—PROVISIONS RELATING TO THE SOCIAL SECURITY

ACCOUNT NUMBER

Sec. 101. Governmental use and treatment of social security account numbers.

Sec. 102. Regulation of the sale and purchase of the social security account

number in the private sector.

Sec. 103. New criminal penalties for misuse of social security account numbers.

Sec. 104. Extension of civil monetary penalty authority.

Sec. 105. Authority for judicial orders of restitution.

Sec. 106. Confidential treatment of credit header information.

Sec. 107. Law enforcement authority for the Office of the Inspector General of

the Social Security Administration.

TITLE II—PROVISIONS RELATING TO REPRESENTATIVE PAYEES

Sec. 201. Authority to reissue benefits misused by organizational representative

payees.

Sec. 202. Oversight of nongovernmental organizational representative payees.

Sec. 203. Disqualification from service as representative payee upon conviction

of offenses punishable by imprisonment for more than 1 year.

Sec. 204. Fee forfeiture in case of benefit misuse by representative payees.

Sec. 205. Liability of representative payees for misused benefits.

Sec. 206. Extension of civil monetary penalty authority with respect to representative payees.

6 SEC. 2. FINDINGS.

7 The Congress makes the following findings:

8 (1) The inappropriate sale or purchase of social

9 security account numbers is a significant factor in a

10 growing range of illegal activities, including fraud,

11 identity theft, and, in some cases, stalking and other

12 violent crimes.
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1 (2) While financial institutions, health care pro2 viders, and other entities have often used social se3 curity account numbers to confirm the identity of an

4 individual, the sale or purchase of these numbers

5 often facilitates the commission of criminal activi6 ties, and also can result in serious invasions of indi7 vidual privacy.

8 (3) The Federal Government requires virtually

9 every individual in the United States to obtain and

10 maintain a social security account number in order

11 to pay taxes, to qualify for Social Security benefits,

12 or to seek employment. An unintended consequence

13 of these requirements is that social security account

14 numbers have become tools that can be used to fa15 cilitate crime, fraud, and invasions of the privacy of

16 the individuals to whom the numbers are assigned.

17 Because the Federal Government created and main18 tains this system, and because the Federal Govern19 ment does not permit persons to exempt themselves

20 from those requirements, it is appropriate for the

21 Government to take steps to stem the abuse of this

22 system.

23 (4) A social security account number is simply

24 a sequence of numbers. In no meaningful sense can

25 the number itself impart knowledge or ideas. Per-
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1 sons do not sell or transfer such numbers in order

2 to convey any particularized message, nor to express

3 to the purchaser any ideas, knowledge, or thoughts.

4 (5) A social security account number does not

5 contain, reflect, or convey any publicly significant in6 formation or concern any public issue. The sale of

7 such numbers in no way facilitates uninhibited, ro8 bust and wide-open public debate; and restrictions

9 on such sale would not affect public debate.

10 (6) No one should seek to profit from the sale

11 of social security account numbers in circumstances

12 that create a substantial risk of physical, emotional,

13 or financial harm to the individuals to whom those

14 numbers are assigned.

15 (7) Consequently, Congress should enact legis16 lation that will offer individuals assigned such num17 bers necessary protection from the sale and purchase

18 of social security account numbers in circumstances

19 that might facilitate unlawful conduct or that might

20 otherwise likely result in unfair and deceptive prac21 tices.
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1 TITLE I—PROVISIONS RELATING

2 TO THE SOCIAL SECURITY AC3 COUNT NUMBER

4 SEC. 101. GOVERNMENTAL USE AND TREATMENT OF SO5 CIAL SECURITY ACCOUNT NUMBERS.

6 (a) RESTRICTIONS ON THE SALE OF SOCIAL SECU7 RITY ACCOUNT NUMBERS BY GOVERNMENTAL AGEN8 CIES.—

9 (1) IN GENERAL.—Section 205(c)(2)(C) of the

10 Social Security Act (42 U.S.C. 405(c)(2)(C)) is

11 amended by adding at the end the following new

12 clause:

13 ‘‘(x) No agency or instrumentality of the Federal

14 Government or of a State or a political subdivision thereof

15 in possession of any individual’s social security account

16 number may accept an item of material value in exchange

17 for such number, or any derivative thereof, except to the

18 extent specifically authorized by this title.’’.

19 (2) EFFECTIVE DATE.—The amendment made

20 by this subsection shall apply with respect to viola21 tions occurring after 180 days after the date of the

22 enactment of this Act.

23 (b) PROHIBITION OF PUBLIC ACCESS TO SOCIAL SE24 CURITY ACCOUNT NUMBERS POSSESSED BY GOVERN25 MENTAL AGENCIES.—
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1 (1) IN GENERAL.—Section 205(c)(2)(C)(viii) of

2 such Act (42 U.S.C. 405(c)(2)(C)(viii)) is amended

3 by adding at the end the following new subclause:

4 ‘‘(V) No agency or instrumentality of the Federal

5 Government or of a State or a political subdivision thereof

6 may display to the general public any individual’s social

7 security account number, or any derivative of such num8 ber. Each such agency or instrumentality shall ensure that

9 access to such numbers, and any derivative of such num10 bers, is restricted to persons who may obtain them in ac11 cordance with applicable law. For purposes of this sub12 clause, the term ‘display to the general public’ in connec13 tion with a social security account number, or a derivative

14 thereof, means the intentional placing of such number or

15 derivative in a viewable manner on an Internet site that

16 is available to the general public or in material made avail17 able or sold to the general public.’’.

18 (2) EFFECTIVE DATE.—The amendment made

19 by this subsection shall apply only with respect to

20 displays originally occurring after 2 years after the

21 date of the enactment of this Act.

22 (c) REPORT BY GENERAL ACCOUNTING OFFICE ON

23 USE BY GOVERNMENTAL AGENCIES AS PERSONAL IDEN24 TIFICATION NUMBER.—
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1 (1) STUDY.—The Comptroller General of the

2 United States shall undertake a study of—

3 (A) the current usage, by agencies and in4 strumentalities in all branches of the Federal

5 Government and by agencies and instrumental6 ities of States and political subdivisions thereof,

7 of the social security account numbers of indi8 viduals, and derivatives of such numbers, for

9 purposes of identification of such individuals,

10 and

11 (B) the most effective means by which any

12 such usage extending beyond the original pur13 poses of the social security account number may

14 be minimized.

15 (2) REPORT.—Not later than 1 year after the

16 date of the enactment of this Act, the Comptroller

17 General shall submit a report to the Committee on

18 Ways and Means of the House of Representatives

19 and the Committee on Finance of the Senate setting

20 forth the results of the study conducted pursuant to

21 this subsection. Such report shall contain such rec22 ommendations, including proposals for legislative

23 changes, as the Comptroller General deems appro24 priate.
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1 (d) PROHIBITION OF USE OF SOCIAL SECURITY AC2 COUNT NUMBER ON CHECKS ISSUED FOR PAYMENT BY

3 GOVERNMENTAL AGENCIES.—

4 (1) IN GENERAL.—Section 205(c)(2)(C) of the

5 Social Security Act (42 U.S.C. 405(c)(2)(C)) (as

6 amended by subsection (a)) is amended further by

7 adding at the end the following new clause:

8 ‘‘(xi) No agency or instrumentality of the Federal

9 Government or of a State or a political subdivision thereof

10 may include the social security account number of any in11 dividual, or any derivative of such number, on any check

12 issued for any payment by the Federal Government, any

13 State or political subdivision thereof, or any agency or in14 strumentality thereof.’’.

15 (2) EFFECTIVE DATE.—The amendment made

16 by this subsection shall apply with respect to viola17 tions occurring after 2 years after the date of the

18 enactment of this Act.

19 (e) INDEPENDENT VERIFICATION OF BIRTH

20 RECORDS PROVIDED IN SUPPORT OF APPLICATIONS FOR

21 SOCIAL SECURITY ACCOUNT NUMBERS.—

22 (1) IN GENERAL.—Section 205(c)(2)(B)(ii) of

23 such Act (42 U.S.C. 405(c)(2)(B)(ii)) is amended by

24 adding at the end the following new sentence: ‘‘With

25 respect to an application for a social security ac-
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1 count number for an individual other than for pur2 poses of enumeration at birth, the Commissioner

3 shall require independent verification of any birth

4 record provided by the applicant in support of the

5 application.’’.

6 (2) EFFECTIVE DATE.—The amendment made

7 by paragraph (1) shall apply with respect to applica8 tions filed after 1 year after the date of the enact9 ment of this Act.

10 (3) REPORT ON ENUMERATION AT ENTRY.—

11 Not later than 1 year after the date of the enact12 ment of this Act, the Commissioner of Social Secu13 rity and the Attorney General of the United States

14 shall jointly submit a report detailing the progress of

15 the Social Security Administration and the Immigra16 tion and Naturalization Service in implementing a

17 process for enumeration at entry for aliens entering

18 the United States. Such report shall be submitted to

19 the Committee on Ways and Means and the Com20 mittee on the Judiciary of the House of Representa21 tives and the Committee on Finance and the Com22 mittee on the Judiciary of the Senate.

23 (f) PROHIBITION OF APPEARANCE OF SOCIAL SECU24 RITY ACCOUNT NUMBERS ON DRIVER’S LICENSES OR

25 MOTOR VEHICLE REGISTRATION.—
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1 (1) IN GENERAL.—Section 205(c)(2)(C)(vi) of

2 such Act (42 U.S.C. 405(c)(2)(C)(vi)) is amended—

3 (A) by inserting ‘‘(I)’’ after ‘‘(vi)’’; and

4 (B) by adding at the end the following new

5 subclause:

6 ‘‘(II) A State (or political subdivision thereof), in the

7 administration of any driver’s license or motor vehicle reg8 istration law within its jurisdiction, may not disclose the

9 social security account numbers issued by the Commis10 sioner of Social Security, or any derivative of such num11 bers, on any driver’s license or motor vehicle registration

12 or any other document issued by such State or political

13 subdivision to an individual for purposes of identification

14 of such individual.’’.

15 (2) EFFECTIVE DATE.—The amendment made

16 by this subsection shall apply with respect to li17 censes, registrations, and other documents issued or

18 reissued after 180 days after the date of the enact19 ment of this Act.

20 (g) PROHIBITION OF DISPLAY BY GOVERNMENTAL

21 AGENCIES OF PERSONAL IDENTIFICATION NUMBER.—

22 (1) IN GENERAL.—Section 205(c)(2)(C) of the

23 Social Security Act (42 U.S.C. 405(c)(2)(C)) (as

24 amended by the preceding provisions of this section)
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1 is amended further by adding at the end the fol2 lowing new clause:

3 ‘‘(xii) No agency or instrumentality of the Federal

4 Government or of a State or political subdivison thereof

5 may display the social security account number, or any

6 deriviative of such number, on any card or tag provided

7 to the employee for purposes of identification. For pur8 poses of this clause, the term ‘display’ in connection with

9 a social security account number, or a derivative thereof,

10 means the intentional placing of such number or derivitive

11 in a viewable manner on a card or tag that is commonly

12 provided to the individual and is to be maintained by the

13 individual.’’.

14 (2) EFFECTIVE DATE.—The amendment made

15 by this subsection shall apply with respect to viola16 tions occurring after 1 year after the date of the en17 actment of this Act.

18 SEC. 102. REGULATION OF THE SALE AND PURCHASE OF

19 THE SOCIAL SECURITY ACCOUNT NUMBER IN

20 THE PRIVATE SECTOR.

21 (a) DEFINITIONS.—In this section:

22 (1) COMMISSION.—The term ‘‘Commission’’

23 means the Federal Trade Commission.
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1 (2) PERSON.—The term ‘‘person’’ means any

2 individual, partnership, corporation, trust, estate, co3 operative, association, or any other entity.

4 (3) SALE.—The term ‘‘sell’’ in connection with

5 a social security account number means to obtain,

6 directly or indirectly, anything of value in exchange

7 for such number. Such term does not include the

8 submission of such number as part of the process

9 for applying for any type of Government benefits or

10 programs (such as grants or loans or welfare or

11 other public assistance programs). Such term also

12 does not include transfers of such number as part of

13 a data matching program under the Computer

14 Matching and Privacy Protection Act and the

15 amendments made thereby.

16 (4) PURCHASE.—The term ‘‘purchase’’ in con17 nection with a social security account number means

18 to provide, directly or indirectly, anything of value in

19 exchange for such number. Such term does not in20 clude the submission of such number as part of the

21 process for applying for any type of Government

22 benefit or programs (such as grant or loan applica23 tions or welfare or other public assistance pro24 grams). Such term also does not include transfers of

25 such number as part of a data matching program
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1 under the Computer Matching and Privacy Protec2 tion Act and the amendments made thereby.

3 (5) SOCIAL SECURITY ACCOUNT NUMBER.—The

4 term ‘social security account number’ has the mean5 ing given such term in section 208 of the Social Se6 curity Act (42 U.S.C. 408).

7 (6) STATE.—The term ‘‘State’’ means any

8 State of the United States, the District of Columbia,

9 Puerto Rico, the Northern Mariana Islands, the

10 United States Virgin Islands, Guam, American

11 Samoa, and any territory or possession of the

12 United States.

13 (b) PROHIBITION.—It shall be unlawful for any per14 son to sell or purchase a social security account number

15 in a manner that violates a regulation promulgated by the

16 Commission under subsection (c) of this section.

17 (c) REGULATIONS.—

18 (1) RESTRICTIONS AUTHORIZED.—The Com19 mission, after consultation with the Commissioner of

20 Social Security, the Department of Justice, and

21 other agencies as the Commission deems appro22 priate, shall promulgate regulations restricting the

23 sale and purchase of social security account numbers

24 and any unfair or deceptive acts or practices in con-
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1 nection with the sale and purchase of social security

2 account numbers.

3 (2) LIMITATIONS ON RESTRICTIONS.—In pro4 mulgating such regulations, the Commission shall

5 impose restrictions and conditions on the sale and

6 purchase of social security account numbers that are

7 no broader than necessary—

8 (A) to provide reasonable assurance that

9 social security account numbers will not be used

10 to commit or facilitate fraud, deception, or

11 crime; and

12 (B) to prevent an undue risk of bodily,

13 emotional, or financial harm to individuals.

14 For purposes of subparagraph (B), the Commission

15 shall consider the nature, likelihood, and severity of

16 the anticipated harm; the nature, likelihood, and ex17 tent of any benefits that could be realized from the

18 sale or purchase of the numbers; and any other rel19 evant factors.

20 (3) EXCEPTIONS.—The regulations promul21 gated pursuant to paragraph (1) shall include excep22 tions which permit the sale and purchase of social

23 security account numbers—

24 (A) to the extent necessary for law enforce25 ment or national security purposes;
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1 (B) to the extent necessary for public

2 health purposes;

3 (C) to the extent necessary in emergency

4 situations to protect the health or safety of 1

5 or more individuals;

6 (D) to the extent necessary for research

7 conducted for the purpose of advancing public

8 knowledge, on the condition that the researcher

9 provides adequate assurances that—

10 (i) the social security account num11 bers will not be used to harass, target, or

12 publicly reveal information concerning any

13 identifiable individuals;

14 (ii) information about identifiable in15 dividuals obtained from the research will

16 not to be used to make decisions that di17 rectly affect the rights, benefits, or privi18 leges of specific individuals; and

19 (iii) the researcher has in place appro20 priate safeguards to protect the privacy

21 and confidentiality of any information

22 about identifiable individuals;

23 (E) to the extent consistent with an indi24 vidual’s voluntary and affirmative written con25 sent to the sale or purchase of a social security
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1 account number that has been assigned to that

2 individual; and

3 (F) under other appropriate circumstances

4 as the Commission may determine are con5 sistent with the findings in section 2 of this Act

6 and the principles in paragraph (2).

7 (d) RULEMAKING.—

8 (1) DEADLINE FOR ACTION.—Not later than 1

9 year after the date of enactment of this Act, the

10 Commission shall promulgate the regulations under

11 subsection (c) of this section, in accordance with sec12 tion 553 of title 5, United States Code.

13 (2) EFFECTIVE DATES.—Subsection (b) and the

14 regulations promulgated under subsection (c) shall

15 take effect 30 days after the date on which the final

16 regulations issued under this section are published

17 in the Federal Register.

18 (e) ENFORCEMENT.—Any violation of a regulation

19 promulgated under subsection (c) of this section shall be

20 treated as a violation of a regulation under section

21 18(a)(1)(B) of the Federal Trade Commission Act (15

22 U.S.C. 57a(a)(1)(B)) regarding unfair or deceptive acts

23 or practices.

24 (f) ADMINISTRATION AND APPLICABILITY OF ACT.—
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1 (1) THE COMMISSION.—The Commission shall

2 prevent any person from violating this section, and

3 any regulation promulgated thereunder, in the same

4 manner, by the same means, and with the same ju5 risdiction, powers, and duties as though all applica6 ble terms and provisions of the Federal Trade Com7 mission Act (15 U.S.C. 41 et seq.) were incor8 porated into and made a part of this section. Any

9 person who violates such regulation shall be subject

10 to the penalties and entitled to the privileges and

11 immunities provided in the Federal Trade Commis12 sion Act (15 U.S.C. 41 et seq.) as though all appli13 cable terms and provisions of the Federal Trade

14 Commission Act (15 U.S.C. 41 et seq.) were incor15 porated into and made a part of this section. Noth16 ing contained in this section shall be construed to

17 limit the authority of the Commission under any

18 other provision of law.

19 (2) ACTIONS BY STATES.—

20 (A) CIVIL ACTIONS.—In any case in which

21 the attorney general of a State has reason to

22 believe that an interest of the residents of that

23 State has been or is threatened or adversely af24 fected by an act or practice that violates any

25 regulation of the Commission promulgated
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1 under subsection (c), the State, as parens

2 patriae, may bring a civil action on behalf of

3 the residents of the State in a district court of

4 the United States of appropriate jurisdiction,

5 to—

6 (i) enjoin that act or practice;

7 (ii) enforce compliance with the regu8 lation;

9 (iii) obtain damages, restitution, or

10 other compensation on behalf of residents

11 of the State; or

12 (iv) obtain such other legal and equi13 table relief as the district court may con14 sider to be appropriate.

15 Before filing an action under this subsection,

16 the attorney general of the State involved shall

17 provide to the Commission and to the Attorney

18 General a written notice of that action and a

19 copy of the complaint for that action. If the

20 State attorney general determines that it is not

21 feasible to provide the notice described in this

22 subparagraph before the filing of the action, the

23 State attorney general shall provide the written

24 notice and the copy of the complaint to the

25 Commission and to the Attorney General as
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1 soon after the filing of the complaint as prac2 ticable.

3 (B) COMMISSION AND ATTORNEY GENERAL

4 AUTHORITY.—On receiving notice under sub5 paragraph (A), the Commission and the Attor6 ney General each shall have the right—

7 (i) to move to stay the action, pending

8 the final disposition of a pending Federal

9 matter as described in subparagraph (C);

10 (ii) to intervene in an action under

11 clause (i);

12 (iii) upon so intervening, to be heard

13 on all matters arising therein; and

14 (iv) to file petitions for appeal.

15 (C) PENDING CRIMINAL PROCEEDINGS.—If

16 the Attorney General has instituted a criminal

17 proceeding or the Federal Trade Commission

18 has instituted a civil action for a violation of

19 this Act or any regulations thereunder, no State

20 may, during the pendency of such proceeding or

21 action, bring an action under this section

22 against any defendant named in the criminal

23 proceeding or civil action for any violation of

24 this section that is alleged in that proceeding or

25 action.
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1 (D) RULE OF CONSTRUCTION.—For pur2 poses of bringing any civil action under sub3 paragraph (A), nothing in this Act shall be con4 strued to prevent an attorney general of a State

5 from exercising the powers conferred on the at6 torney general by the laws of that State to con7 duct investigations, administer oaths and affir8 mations, or compel the attendance of witnesses

9 or the production of documentary and other evi10 dence.

11 (E) VENUE; SERVICE OF PROCESS.—Any

12 action brought under this section may be

13 brought in any district court of the United

14 States that meets applicable requirements relat15 ing to venue under section 1391 of title 28,

16 United States Code. In an action brought under

17 this section, process may be served in any dis18 trict in which the defendant is an inhabitant or

19 may be found.

20 (g) UNFAIR OR DECEPTIVE ACT OR PRACTICE.—Any

21 person who refuses to do business with an individual be22 cause the individual will not consent to the receipt by such

23 person of the social security account number of such indi24 vidual shall be considered to have committed an unfair or

25 deceptive act or practice in violation of section 5 of the
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1 Federal Trade Commission Act (15 U.S.C. 45). Action

2 may be taken under such section 5 against such a person.

3 SEC. 103. NEW CRIMINAL PENALTIES FOR MISUSE OF SO4 CIAL SECURITY ACCOUNT NUMBERS.

5 (a) SALE AND PURCHASE OF SOCIAL SECURITY AC6 COUNT NUMBERS.—Section 208 of the Social Security Act

7 (42 U.S.C. 408) is amended—

8 (1) in subsection (a)(8), by striking ‘‘or’’ and

9 by inserting ‘‘, or knowingly sells or purchases’’

10 after ‘‘the disclosure of’’;

11 (2) in subsection (c), by striking the last sen12 tence;

13 (3) by redesignating subsection (d) as sub14 section (e); and

15 (4) by inserting after subsection (c) the fol16 lowing new subsection:

17 ‘‘(d)(1) For purposes of subsection (a)(7), the term

18 ‘social security account number’ means a number assigned

19 by the Commissioner of Social Security under section

20 205(c)(2) whether or not, in actual use, such number is

21 called a social security account number.

22 ‘‘(2) For purposes of subsection (a)(8), the term ‘sell’

23 in connection with a social security account number means

24 to obtain, directly or indirectly, anything of value in ex25 change for such number. Such term does not include the
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1 submission of such number as part of the process for ap2 plying for any type of Government benefits or programs

3 (such as grants or loans or welfare or other public assist4 ance programs). Such term also does not include a trans5 fer of such number as part of a data matching program

6 under the Computer Matching and Privacy Protection Act

7 and the amendments made thereby.

8 ‘‘(3) For purposes of subsection (a)(8), the term ‘pur9 chase’ in connection with a social security account number

10 means to provide, directly or indirectly, anything of value

11 in exchange for such number. Such term does not include

12 the submission of such number as part of the process for

13 applying for any type of Government benefits or programs

14 (such as grants or loans or welfare or other public assist15 ance programs). Such term also does not include a trans16 fer of such number as part of a data matching program

17 under the Computer Matching and Privacy Protection Act

18 and the amendments made thereby.’’.

19 (b) ADDITIONAL PROVISIONS.—

20 (1) IN GENERAL.—Section 208(a) of such Act

21 is amended further—

22 (A) in paragraph (8), by adding ‘‘or’’ at

23 the end; and

24 (B) by inserting after paragraph (8) the

25 following new paragraphs:
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1 ‘‘(9) offers, for a fee, to acquire for any indi2 vidual, or to assist in acquiring for any individual,

3 an additional social security account number or a

4 number that purports to be a social security account

5 number; or

6 ‘‘(10) being an officer or employee of any agen7 cy of the Federal Government or of a State or polit8 ical subdivision thereof in possession of any individ9 ual’s social security account number, willfully acts or

10 fails to act so as to cause a violation by such agency

11 of clause (vi)(II), (viii)(V), (x), or (xi) of section

12 205(c)(2)(C);’’.

13 (2) EFFECTIVE DATES.—Section 208(a)(9) of

14 the Social Security Act (added by paragraph (1))

15 shall apply with respect to violations occurring after

16 the date of the enactment of this Act. Section

17 208(a)(10) of such Act (added by paragraph (1))

18 shall apply with respect to violations occurring on an

19 after the effective date applicable with respect to

20 such violations under section 101.

21 SEC. 104. EXTENSION OF CIVIL MONETARY PENALTY AU22 THORITY.

23 (a) TREATMENT OF WITHHOLDING OF MATERIAL

24 FACTS.—
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1 (1) CIVIL PENALTIES.—Section 1129(a)(1) of

2 the Social Security Act (42 U.S.C. 1320a–8(a)(1)) is

3 amended in the first sentence—

4 (A) by striking ‘‘who’’ and inserting

5 ‘‘who—’’;

6 (B) by striking ‘‘makes’’ and all that fol7 lows through ‘‘shall be subject to’’ and inserting

8 the following:

9 ‘‘(A) makes, or causes to be made, a statement

10 or representation of a material fact, for use in deter11 mining any initial or continuing right to or the

12 amount of monthly insurance benefits under title II

13 or benefits or payments under title XVI, that the

14 person knows or should know is false or misleading,

15 ‘‘(B) makes such a statement or representation

16 for such use with knowing disregard for the truth,

17 or

18 ‘‘(C) omits from a statement or representation

19 for such use, or otherwise withholds disclosure of, a

20 fact which the individual knows or should know is

21 material to the determination of any initial or con22 tinuing right to or the amount of monthly insurance

23 benefits under title II or benefits or payments under

24 title XVI and the individual knows, or should know,

25 that the statement or representation with such omis-
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1 sion is false or misleading or that the withholding of

2 such disclosure is misleading,

3 shall be subject to’’;

4 (C) by inserting ‘‘or each receipt of such

5 benefits while withholding disclosure of such

6 fact’’ after ‘‘each such statement or representa7 tion’’;

8 (D) by inserting ‘‘or because of such with9 holding of disclosure of a material fact’’ after

10 ‘‘because of such statement or representation’’;

11 and

12 (E) by inserting ‘‘or such a withholding of

13 disclosure’’ after ‘‘such a statement or rep14 resentation’’.

15 (2) ADMINISTRATIVE PROCEDURE FOR IMPOS16 ING PENALTIES.—Section 1129A(a) of such Act (42

17 U.S.C. 1320a–8a(a)) is amended in the first

18 sentence—

19 (A) by striking ‘‘who’’ and inserting

20 ‘‘who—’’; and

21 (B) by striking ‘‘makes’’ and all that fol22 lows through ‘‘shall be subject to,’’ and insert23 ing the following:

24 ‘‘(1) makes, or causes to be made, a statement

25 or representation of a material fact, for use in deter-
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1 mining any initial or continuing right to or the

2 amount of monthly insurance benefits under title II

3 or benefits or payments under title XVI, that the

4 person knows or should know is false or misleading,

5 ‘‘(2) makes such a statement or representation

6 for such use with knowing disregard for the truth,

7 or

8 ‘‘(3) omits from a statement or representation

9 for such use, or otherwise withholds disclosure of, a

10 fact which the individual knows or should know is

11 material to the determination of any initial or con12 tinuing right to or the amount of monthly insurance

13 benefits under title II or benefits or payments under

14 title XVI and the individual knows, or should know,

15 that the statement or representation with such omis16 sion is false or misleading or that the withholding of

17 such disclosure is misleading,

18 shall be subject to,’’.

19 (b) APPLICATION OF CIVIL MONEY PENALTIES TO

20 ELEMENTS OF CRIMINAL VIOLATIONS.—Section 1129(a)

21 of such Act (42 U.S.C. 1320a–8(a)) is amended further—

22 (1) by redesignating paragraph (2) as para23 graph (4);
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1 (2) by designating the last sentence of para2 graph (1) as a new paragraph (2), appearing after

3 and below paragraph (1); and

4 (3) by inserting after paragraph (2) (as des5 ignated under paragraph (2) of this subsection) the

6 following:

7 ‘‘(3) Any person (including an organization, agency,

8 or other entity) who—

9 ‘‘(A) uses a social security account number that

10 such person knows or should know has been as11 signed by the Commissioner of Social Security (in an

12 exercise of authority under section 205(c)(2) to es13 tablish and maintain records) on the basis of false

14 information furnished to the Commissioner by any

15 person;

16 ‘‘(B) falsely represents a number to be the so17 cial security account number assigned by the Com18 missioner of Social Security to any individual, when

19 such person knows or should know that such number

20 is not the social security account number assigned

21 by the Commissioner to such individual;

22 ‘‘(C) knowingly alters a social security card

23 issued by the Commissioner of Social Security, or

24 possesses such a card with intent to alter it;
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1 ‘‘(D) knowingly buys or sells a card that is, or

2 purports to be, a card issued by the Commissioner

3 of Social Security, or possesses such a card with in4 tent to buy or sell it;

5 ‘‘(E) counterfeits a social security card, or pos6 sesses a counterfeit social security card with intent

7 to buy or sell it;

8 ‘‘(F) discloses, uses, compels the disclosure of,

9 or knowingly sells or purchases the social security

10 account number of any person in violation of the

11 laws of the United States;

12 ‘‘(G) with intent to deceive the Commissioner of

13 Social Security as to such person’s true identity (or

14 the true identity of any other person) furnishes or

15 causes to be furnished false information to the Com16 missioner with respect to any information required

17 by the Commissioner in connection with the estab18 lishment and maintenance of the records provided

19 for in section 205(c)(2);

20 ‘‘(H) offers, for a fee, to acquire for any indi21 vidual, or to assist in acquiring for any individual,

22 an additional social security account number or a

23 number which purports to be a social security ac24 count number; or
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1 ‘‘(I) being an officer or employee of any agency

2 of the Federal Government or of a State or political

3 subdivision thereof in possession of any individual’s

4 social security account number, willfully acts or fails

5 to act so as to cause a violation by such agency of

6 clause (vi)(II), (viii)(V), (x), or (xi) of section

7 205(c)(2)(C);

8 shall be subject to, in addition to any other penalties that

9 may be prescribed by law, a civil money penalty of not

10 more than $5,000 for each violation. Such person shall

11 also be subject to an assessment, in lieu of damages sus12 tained by the United States resulting from such violation,

13 of not more than twice the amount of any benefits or pay14 ments paid as a result of such violation.’’.

15 (c) CLARIFICATION OF TREATMENT OF RECOVERED

16 AMOUNTS.—Section 1129(e)(2)(B) of such Act (42

17 U.S.C. 1320a–8(e)(2)(B)) is amended by striking ‘‘In the

18 case of amounts recovered arising out of a determination

19 relating to title XVI,’’ and inserting ‘‘In the case of any

20 other amounts recovered under this section,’’.

21 (d) CONFORMING AMENDMENTS.—

22 (1) Section 1129(b)(3)(A) of such Act (42

23 U.S.C. 1320a–8(b)(3)(A)) is amended by striking

24 ‘‘charging fraud or false statements’’.
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1 (2) Section 1129(c)(1) of such Act (42 U.S.C.

2 1320a–8(c)(1)) is amended by striking ‘‘and rep3 resentations’’ and inserting ‘‘, representations, or ac4 tions’’.

5 (3) Section 1129(e)(1)(A) of such Act (42

6 U.S.C. 1320a–8(e)(1)(A)) is amended by striking

7 ‘‘statement or representation referred to in sub8 section (a) was made’’ and inserting ‘‘violation oc9 curred’’.

10 (e) EFFECTIVE DATES.—The amendments made by

11 this section shall apply with respect to violations com12 mitted after the date of the enactment of this Act, except

13 that section 1129(a)(3)(I) of the Social Security Act

14 (added by subsection (b)) shall apply with respect to viola15 tions occurring on or after the effective date provided in

16 connection with such violations under section 101.

17 SEC. 105. AUTHORITY FOR JUDICIAL ORDERS OF RESTITU18 TION.

19 (a) AMENDMENTS TO TITLE II.—Section 208 of the

20 Social Security Act (42 U.S.C. 408) is amended—

21 (1) by redesignating subsections (b), (c), and

22 (d) as subsections (c), (d), and (e), respectively; and

23 (2) by inserting after subsection (a) the fol24 lowing new subsection:
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1 ‘‘(b)(1) Any Federal court, when sentencing a defend2 ant convicted of an offense under subsection (a), may

3 order, in addition to or in lieu of any other penalty author4 ized by law, that the defendant make restitution to the

5 Social Security Administration.

6 ‘‘(2) Sections 3612, 3663, and 3664 of title 18,

7 United States Code, shall apply with respect to the

8 issuance and enforcement of orders of restitution under

9 this subsection. In so applying such sections, the Social

10 Security Administration shall be considered the victim.

11 ‘‘(3) If the court does not order restitution, or orders

12 only partial restitution, under this section, the court shall

13 state on the record the reasons therefor.’’.

14 (b) AMENDMENTS TO TITLE XVI.—Section 1632 of

15 such Act (42 U.S.C. 1383a) is amended—

16 (1) by redesignating subsection (b) as sub17 section (c); and

18 (2) by inserting after subsection (a) the fol19 lowing new subsection:

20 ‘‘(b)(1) Any Federal court, when sentencing a defend21 ant convicted of an offense under subsection (a), may

22 order, in addition to or in lieu of any other penalty author23 ized by law, that the defendant make restitution to the

24 Social Security Administration.
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1 ‘‘(2) Sections 3612, 3663, and 3664 of title 18,

2 United States Code, shall apply with respect to the

3 issuance and enforcement of orders of restitution under

4 this subsection. In so applying such sections, and the So5 cial Security Administration shall be considered the vic6 tim.

7 ‘‘(3) If the court does not order restitution, or orders

8 only partial restitution, under this section, the court shall

9 state on the record the reasons therefor.’’.

10 (c) SPECIAL ACCOUNT FOR RECEIPT OF RESTITU11 TION PAYMENTS.—Section 704(b) of such Act (42 U.S.C.

12 904(b)) is amended by adding at the end the following

13 new paragraph:

14 ‘‘(3)(A) Except as provided in subparagraph (B),

15 amounts received by the Social Security Administration

16 pursuant to an order of restitution under section 208(b)

17 or 1632(b) shall be credited to a special fund established

18 in the Treasury of the United States for amounts so re19 ceived or recovered. The amounts so credited, to the extent

20 and in the amounts provided in advance in appropriations

21 Acts, shall be available to defray expenses incurred in car22 rying out title II and title XVI.

23 ‘‘(B) Subparagraph (A) shall not apply with respect

24 to amounts received in connection with misuse by a rep25 resentative payee (within the meaning of sections 205(j)
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1 and 1631(a)(2)) of funds paid as benefits under title II

2 or XVI. Such amounts received in connection with misuse

3 of funds paid as benefits under title II shall be transferred

4 to the Managing Trustee of the Federal Old-Age and Sur5 vivors Insurance Trust Fund or the Federal Disability In6 surance Trust Fund, as determined appropriate by the

7 Commissioner of Social Security, and such amounts shall

8 be deposited by the Managing Trustee into such Trust

9 Fund. All other such amounts shall be deposited by the

10 Commissioner into the general fund of the Treasury as

11 miscellaneous receipts.’’.

12 (d) EFFECTIVE DATE.—The amendments made by

13 subsections (a) and (b) shall apply with respect to viola14 tions occurring on or after the date of the enactment of

15 this Act.

16 SEC. 106. CONFIDENTIAL TREATMENT OF CREDIT HEADER

17 INFORMATION.

18 (a) IN GENERAL.—Section 603(d) of the Fair Credit

19 Reporting Act (15 U.S.C. 1681a(d)) is amended by insert20 ing after the first sentence the following: ‘‘The term also

21 includes information regarding the social security account

22 number of the consumer or any derivative thereof.’’.

23 (b) EFFECTIVE DATE.—The amendment made by

24 this section shall take effect 90 days after the date of the

25 enactment of this Act.
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1 SEC. 107. LAW ENFORCEMENT AUTHORITY FOR THE OF2 FICE OF THE INSPECTOR GENERAL OF THE

3 SOCIAL SECURITY ADMINISTRATION.

4 Section 702(e) of the Social Security Act (42 U.S.C.

5 902(e)) is amended—

6 (1) by inserting ‘‘(1) IN GENERAL.—’’ after

7 ‘‘(e)’’; and

8 (2) by adding at the end the following:

9 ‘‘(2) LAW ENFORCEMENT AUTHORITY.—

10 ‘‘(A) SPECIFIC DESIGNATIONS.—The Inspector

11 General may designate one or more special agents in

12 the Office of the Inspector General to exercise the

13 authorities specified in subparagraph (B).

14 ‘‘(B) AUTHORITIES.—A special agent in the Of15 fice of the Inspector General who is designated

16 under subparagraph (A) may—

17 ‘‘(i) carry firearms,

18 ‘‘(ii) execute and serve any warrant or

19 other process issued under the authority of the

20 United States, and

21 ‘‘(iii) make arrests without warrant for—

22 ‘‘(I) any offense against the United

23 States committed in the special agent’s

24 presence, or

25 ‘‘(II) any offense punishable under

26 Federal law by imprisonment for more
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1 than 1 year, if the special agent has prob2 able cause to believe that the person to be

3 arrested has committed or is committing

4 the offense.

5 ‘‘(C) SPECIAL AGENT.—For purposes of this

6 paragraph, the term ‘special agent’ means an em7 ployee in the Office of the Inspector General whose

8 duties include conducting, supervising, and coordi9 nating investigations of criminal activity in the pro10 grams and operations of the Administration.

11 ‘‘(D) USE OF STATE OR LOCAL LAW ENFORCE12 MENT OFFICERS.—

13 ‘‘(i) IN GENERAL.—Any State or local law

14 enforcement officer designated by the Inspector

15 General, while assisting a special agent des16 ignated under subparagraph (A), may exercise

17 the authorities provided under subparagraph

18 (B).

19 ‘‘(ii) APPLICABILITY OF PROVISIONS GOV20 ERNING FEDERAL EMPLOYEES.—

21 ‘‘(I) IN GENERAL.—Any such officer

22 shall not be deemed a Federal employee,

23 and, subject to subclause (II), shall not be

24 subject to provisions of law relating to

25 Federal employees, solely by reason of the
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1 exercise by such officer of any such author2 ity.

3 ‘‘(II) APPLICABILITY OF CERTAIN

4 PROVISIONS.—While exercising such au5 thority, such officer shall be subject to sub6 section (c) of section 3374 of title 5,

7 United States Code, as if such officer were

8 assigned and appointed as described in

9 such section, except that nothing in this

10 clause shall be construed to authorize Fed11 eral pay or other compensation for such of12 ficer.

13 ‘‘(E) GUIDELINES ON EXERCISE OF AUTHORI14 TIES.—The authorities provided under subparagraph

15 (B) shall be exercised in accordance with guidelines

16 prescribed by the Inspector General and approved by

17 the Attorney General of the United States.’’.

18 TITLE II—PROVISIONS RELAT19 ING TO REPRESENTATIVE

20 PAYEES

21 SECTION 201. AUTHORITY TO REISSUE BENEFITS MISUSED

22 BY ORGANIZATIONAL REPRESENTATIVE PAY23 EES.

24 (a) OASDI AMENDMENT.—Section 205(j)(5) of the

25 Social Security Act (42 U.S.C. 405(j)(5)) is amended by
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1 inserting after the first sentence the following new sen2 tence: ‘‘In any case in which a representative payee—

3 ‘‘(i) that is not an individual (regardless of

4 whether it is a ‘qualified organization’ within the

5 meaning of paragraph (4)(B)); or

6 ‘‘(ii) is an individual who, for any month during

7 a period when misuse occurs, serves 10 or more indi8 viduals who are beneficiaries under title II, title

9 XVI, title VIII, or any combination of such titles;

10 misuses all or part of an individual’s benefit paid to such

11 representative payee, the Commissioner of Social Security

12 shall certify for payment to the beneficiary or the bene13 ficiary’s alternative representative payee an amount equal

14 to the amount of such benefit so misused. The provisions

15 of this paragraph are subject to the limitations of para16 graph (6)(B).’’.

17 (b) SSI AMENDMENT.—Section 1631(a)(2)(E) of

18 such Act (42 U.S.C. 1383(a)(2)(E)) is amended by insert19 ing after the first sentence the following new sentence: ‘‘In

20 any case in which a representative payee—

21 ‘‘(i) that is not an individual (regardless of

22 whether it is a ‘qualified organization’ within the

23 meaning of subparagraph (D)(ii)); or

24 ‘‘(ii) is an individual who, for any month during

25 a period when misuse occurs, serves 10 or more indi-
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1 viduals who are beneficiaries under title II, title

2 XVI, title VIII, or any combination of such titles;

3 misuses all or part of an individual’s benefit paid to such

4 representative payee, the Commissioner of Social Security

5 shall make payment to the beneficiary or the beneficiary’s

6 alternative representative payee of an amount equal to the

7 amount of such benefit so misused. The provisions of this

8 subparagraph are subject to the limitations of subpara9 graph (F)(ii).’’.

10 (c) EFFECTIVE DATE.—The preceding amendments

11 made by this section shall apply to any case of benefit

12 misuse by a representative payee with respect to which the

13 Commissioner makes the determination of misuse after

14 the date of the enactment of the Omnibus Budget Rec15 onciliation Act of 1990 (Public Law 101–501).

16 (d) TECHNICAL AMENDMENT.—Section 205(j) of the

17 Social Security Act (42 U.S.C. 405(j)) is amended by

18 striking paragraph (6).

19 SEC. 202. OVERSIGHT OF NONGOVERNMENTAL ORGANIZA20 TIONAL REPRESENTATIVE PAYEES.

21 (a) CERTIFICATION OF BONDING AND LICENSING

22 REQUIREMENTS.—

23 (1) OASDI AMENDMENT.—Section 205(j) of

24 the Social Security Act (42 U.S.C. 405(j)) is

25 amended—
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1 (A) in paragraph (2)(C)(v)—

2 (i) by striking ‘‘a community-based

3 nonprofit social service agency licensed or

4 bonded by the State’’ in subclause (I) and

5 inserting ‘‘a certified community-based

6 nonprofit social service agency; and

7 (ii) by adding at the end the fol8 lowing: ‘‘For purposes of subclause (I), the

9 term ‘certified community-based nonprofit

10 social service agency’ means a community

11 based nonprofit social service agency which

12 is in compliance with requirements, under

13 regulations which shall be prescribed by

14 the Commissioner, for annual certification

15 to the Commissioner that it is bonded in

16 accordance with requirements specified by

17 the Commissioner and that it is licensed in

18 each State in which it serves as a rep19 resentative payee (if licensing is available

20 in such State in accordance with require21 ments specified by the Commissioner). Any

22 such annual certification shall include a

23 copy of any independent audit on such

24 agency which may have been performed

25 since the previous certification.’’; and
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1 (B) in paragraph (4)(B), by striking ‘‘any

2 community-based nonprofit social service agen3 cy which is bonded or licensed in each State in

4 which it serves as a representative payee’’ and

5 inserting ‘‘any certified community-based non6 profit social service agency (as defined in para7 graph (2)(C)(v))’’.

8 (2) SSI AMENDMENT.—Section 1631(a)(2) of

9 such Act (42 U.S.C. 1383(a)(2)) is amended—

10 (A) in subparagraph (B)(vii)—

11 (i) by striking ‘‘a community-based

12 nonprofit social service agency licensed or

13 bonded by the State’’ in subclause (I) and

14 inserting ‘‘a certified community-based

15 nonprofit social service agency’’; and

16 (ii) by adding at the end the fol17 lowing: ‘‘For purposes of subclause (I), the

18 term ‘certified community-based nonprofit

19 social service agency’ means a community

20 based nonprofit social service agency which

21 is in compliance with requirements, under

22 regulations which shall be prescribed by

23 the Commissioner, for annual certification

24 to the Commissioner that it is bonded in

25 accordance with requirements specified by
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1 the Commissioner and that it is licensed in

2 each State in which it serves as a rep3 resentative payee (if licensing is available

4 in such State in accordance with require5 ments specified by the Commissioner). Any

6 such annual certification shall include a

7 copy of any independent audit on such

8 agency which may have been performed

9 since the previous certification.’’; and

10 (B) in subparagraph (D)(ii)—

11 (i) by striking ‘‘or any community12 based’’ and all that follows down through

13 ‘‘in accordance’’ in subclause (II) and in14 serting ‘‘or any certified community-based

15 nonprofit social service agency (as defined

16 in subparagraph (B)(vii)), if such agency,

17 in accordance’’;

18 (ii) by redesignating items (aa) and

19 (bb) as subclauses (I) and (II), respectively

20 (and adjusting the margination accord21 ingly); and

22 (iii) by striking ‘‘subclause (II)(bb)’’

23 and inserting ‘‘subclause (II)’’.

24 (3) EFFECTIVE DATE.—The amendments made

25 by this subsection shall take effect on the first day
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1 of the thirteenth month beginning after the date of

2 the enactment of this Act.

3 (b) PERIODIC ONSITE REVIEW.—

4 (1) OASDI AMENDMENT.—Section 205(j)(4) of

5 such Act (42 U.S.C. 405(j)(4)) is amended by add6 ing at the end the following new subparagraph:

7 ‘‘(D) The Commissioner of Social Security shall pro8 vide by regulation for the periodic onsite inspection of

9 community-based nonprofit social service agencies serving

10 as representative payees under this subsection.’’.

11 (2) SSI AMENDMENT.—Section 1631(a)(2)(D)

12 of such Act (42 U.S.C. 1383(a)(2)(D)) is amended

13 by adding at the end the following new clause:

14 ‘‘(v) The Commissioner of Social Security shall pro15 vide by regulation for the periodic onsite inspection of

16 community-based nonprofit social service agencies serving

17 as representative payees under this paragraph.’’.

18 SEC. 203. DISQUALIFICATION FROM SERVICE AS REP19 RESENTATIVE PAYEE UPON CONVICTION OF

20 OFFENSES PUNISHABLE BY IMPRISONMENT

21 FOR MORE THAN 1 YEAR.

22 (a) OASDI AMENDMENT.—Section 205(j)(2) of the

23 Social Security Act (42 U.S.C. 405(j)(2)) is amended—

24 (1) in subparagraph (B)(i)—
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1 (A) by striking ‘‘and’’ at the end of sub2 clause (III);

3 (B) by redesignating subclause (IV) as

4 subclause (V); and

5 (C) by inserting after subclause (III) the

6 following new subclause:

7 ‘‘(IV) determine whether such person has been

8 convicted of any other offense punishable under Fed9 eral or State law by imprisonment for more than 1

10 year (regardless of the actual sentence imposed),

11 and’’; and

12 (2) in subparagraph (C)(i), by adding after and

13 below subclause (III) the following new sentence:

14 ‘‘Benefits of an individual may not be certified for pay15 ment to any other person pursuant to this subsection if

16 such person has previously been convicted as described in

17 subparagraph (B)(i)(IV), unless the Commissioner deter18 mines that such certification would be appropriate not19 withstanding such conviction.’’.

20 (b) SSI AMENDMENT.—Section 1631(a)(2)(B) of

21 such Act (42 U.S.C. 1383(a)(2)(B)) is amended—

22 (1) in clause (ii)—

23 (A) by striking ‘‘and’’ at the end of sub24 clause (III);
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1 (B) by redesignating subclause (IV) as

2 subclause (V); and

3 (C) by inserting after subclause (III) the

4 following new subclause:

5 ‘‘(IV) determine whether such person has been

6 convicted of any other offense punishable under Fed7 eral or State law by imprisonment for more than 1

8 year (regardless of the actual sentence imposed),

9 and’’; and

10 (2) in clause (iii), by adding after and below

11 subclause (III) the following new sentence:

12 ‘‘Benefits of an individual may not be paid to any other

13 person pursuant to subparagraph (A)(ii) if such person

14 has previously been convicted as described in clause

15 (ii)(IV), unless the Commissioner determines that such

16 certification would be appropriate notwithstanding such

17 conviction.’’.

18 (c) EFFECTIVE DATE.—The amendments made by

19 this section shall take effect on the first day of the thir20 teenth month beginning after the date of the enactment

21 of this Act.
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1 SEC. 204. FEE FORFEITURE IN CASE OF BENEFIT MISUSE

2 BY REPRESENTATIVE PAYEES.

3 (a) OASDI AMENDMENT.—Section 205(j)(4)(A)(i) of

4 the Social Security Act (42 U.S.C. 405(j)(4)(A)(i)) is

5 amended—

6 (1) in the first sentence, by striking ‘‘A’’ and

7 inserting ‘‘Except as provided in the next sentence,

8 a’’; and

9 (2) by inserting before the second sentence the

10 following new sentence: ‘‘A qualified organization

11 may not collect a fee from an individual for any

12 month with respect to which the Commissioner of

13 Social Security or a court of competent jurisdiction

14 has determined that the organization misused all or

15 part of the individual’s benefit, and any amount so

16 collected by the qualified organization for such

17 month shall be treated as a misused part of the indi18 vidual’s benefit for purposes of paragraphs (5) and

19 (6).’’.

20 (b) SSI AMENDMENT.—Section 1631(a)(2)(D)(i) of

21 such Act (42 U.S.C. 1383(a)(2)(D)(i)) is amended—

22 (1) in the first sentence, by striking ‘‘A’’ and

23 inserting ‘‘Except as provided in the next sentence,

24 a’’; and

25 (2) by inserting before the second sentence the

26 following new sentence: ‘‘A qualified organization
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1 may not collect a fee from an individual for any

2 month with respect to which the Commissioner of

3 Social Security or a court of competent jurisdiction

4 has determined that the organization misused all or

5 part of the individual’s benefit, and any amount so

6 collected by the qualified organization for such

7 month shall be treated as a misused part of the indi8 vidual’s benefit for purposes of subparagraphs (E)

9 and (F).’’.

10 (c) EFFECTIVE DATE.—The amendments made by

11 this section shall apply to any month involving benefit mis12 use by a representative payee in any case with respect to

13 which the Commissioner makes the determination of mis14 use after December 31, 1999.

15 SEC. 205. LIABILITY OF REPRESENTATIVE PAYEES FOR

16 MISUSED BENEFITS.

17 (a) OASDI AMENDMENT.—Section 205(j) of the So18 cial Security Act (42 U.S.C. 405(j)) is amended by redes19 ignating paragraphs (6) and (7) as paragraphs (7) and

20 (8), respectively, and inserting after paragraph (5) the fol21 lowing new paragraph:

22 ‘‘(6)(A) If the Commissioner of Social Security or a

23 court of competent jurisdiction determines that a rep24 resentative payee that is not a State or local government

25 agency has misused all or part of an individual’s benefit
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1 that was paid to such representative payee under this sub2 section, the representative payee shall be liable for the

3 amount misused, and such amount (to the extent not re4 paid by the representative payee) shall be treated as an

5 overpayment of benefits under this title to the representa6 tive payee for all purposes of this Act and related laws

7 pertaining to the recovery of such overpayments. Subject

8 to subparagraph (B), upon recovering all or any part of

9 such amount, the Commissioner shall certify an amount

10 equal to the recovered amount for payment to such indi11 vidual or the individual’s alternative representative payee.

12 ‘‘(B) The total of the amount certified for payment

13 to such individual or the individual’s alternative represent14 ative payee under subparagraph (A) and the amount cer15 tified for payment under paragraph (5) may not exceed

16 the total benefit amount misused by the representative

17 payee with respect to such individual.’’.

18 (b) SSI AMENDMENT.—Section 1631(a)(2) of such

19 Act (42 U.S.C. 1383(a)(2)) is amended by redesignating

20 subparagraphs (F), (G), and (H) as subparagraphs (G),

21 (H), and (I), respectively, and inserting after subpara22 graph (E) the following new subparagraph:

23 ‘‘(F)(i) If the Commissioner of Social Security or a

24 court of competent jurisdiction determines that a rep25 resentative payee that is not a State or local government
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1 agency has misused all or part of an individual’s benefit

2 that was paid to such representative payee under this

3 paragraph, the representative payee shall be liable for the

4 amount misused, and such amount (to the extent not re5 paid by the representative payee) shall be treated as an

6 overpayment of benefits under this title to the representa7 tive payee for all purposes of this Act and related laws

8 pertaining to the recovery of such overpayments. Subject

9 to clause (ii), upon recovering all or any part of such

10 amount, the Commissioner shall make payment of an

11 amount equal to the recovered amount to such individual

12 or the individual’s alternative representative payee.

13 ‘‘(ii) The total of the amount paid to such individual

14 or the individual’s alternative representative payee under

15 clause (i) and the amount paid under subparagraph (E)

16 may not exceed the total benefit amount misused by the

17 representative payee with respect to such individual.’’.

18 (c) EFFECTIVE DATE.—The amendments made by

19 this section shall apply to benefit misuse by a representa20 tive payee in any case with respect to which the Commis21 sioner makes the determination of misuse after December

22 31, 1999.
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1 SEC. 206. EXTENSION OF CIVIL MONETARY PENALTY AU2 THORITY WITH RESPECT TO REPRESENTA3 TIVE PAYEES.

4 (a) IN GENERAL.—Section 1129(a) of the Social Se5 curity Act (42 U.S.C. 1320a–8(a)) (as amended by section

6 106) is amended further—

7 (1) by redesignating paragraph (4) as para8 graph (5); and

9 (2) by inserting after paragraph (3) the fol10 lowing new paragraph:

11 ‘‘(4) Any person (including an organization, agency,

12 or other entity) who, having received, while acting in the

13 capacity of a representative payee pursuant to section

14 205(j) or section 1631(a)(2), a payment under title II or

15 title XVI for the use and benefit of another individual,

16 converts such payment, or any part thereof, to a use that

17 such person knows or should know is other than for the

18 use and benefit of such other individual shall be subject

19 to, in addition to any other penalties that may be pre20 scribed by law, a civil money penalty of not more than

21 $5,000 for each conversion. Such person shall also be sub22 ject to an assessment, in lieu of damages sustained by the

23 United States resulting from such conversion, of not more

24 than twice the amount of any payments so converted.’’.
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•HR 4857 IH

1 (b) EFFECTIVE DATE.—The amendments made by

2 this section shall apply with respect to violations com3 mitted after the date of the enactment of this Act.

Æ