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[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4547 Referred in Senate (RFS)]

<DOC>
115th CONGRESS
  2d Session
                                H. R. 4547

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            February 6, 2018

      Received; read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 AN ACT

 
To amend titles II, VIII, and XVI of the Social Security Act to improve 
           and strengthen the representative payment program.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Strengthening Protections for Social 
Security Beneficiaries Act of 2018''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
      TITLE I--STRENGTHENING OVERSIGHT AND BENEFICIARY PROTECTION

Sec. 101. Stronger monitoring of representative payees.
Sec. 102. Reducing the burden on families.
Sec. 103. Protecting beneficiaries through information sharing.
Sec. 104. Clarifying overpayment liability for child in child welfare 
                            system.
Sec. 105. Reports.
            TITLE II--IMPROVING PAYEE SELECTION AND QUALITY

Sec. 201. Advance designation of representative payees.
Sec. 202. Prohibition on individuals convicted of certain crimes 
                            serving as representative payees.
Sec. 203. Prohibition on individuals with representative payees serving 
                            as representative payees.
Sec. 204. Reassessment of payee selection and replacement policies.

      TITLE I--STRENGTHENING OVERSIGHT AND BENEFICIARY PROTECTION

SEC. 101. STRONGER MONITORING OF REPRESENTATIVE PAYEES.

    (a) Protection and Advocacy for Beneficiaries With Representative 
Payees.--Section 205(j)(6) of the Social Security Act (42 U.S.C. 
405(j)(6)) is amended by adding at the end the following:
    ``(C)(i) The Commissioner of Social Security shall make annual 
grants directly to the protection and advocacy system serving each of 
the States and the American Indian consortium for the purpose of 
conducting reviews of representative payees in accordance with this 
subparagraph. The total amount used by the Commissioner for such grants 
each year--
            ``(I) shall be an amount sufficient, as determined by the 
        Commissioner in consultation with each of the protection and 
        advocacy systems, to carry out all of the activities described 
        in clause (ii); and
            ``(II) shall not be less than $25,000,000.
    ``(ii) A protection and advocacy system awarded a grant under this 
subparagraph shall use the grant funds to--
            ``(I) conduct all periodic onsite reviews pursuant to this 
        paragraph and such other reviews of representative payees as 
        the Commissioner may request, including reviews conducted in 
        response to allegations or concerns about the performance or 
        suitability of the payee;
            ``(II) conduct additional reviews that the protection and 
        advocacy system has reason to believe are warranted;
            ``(III) develop corrective action plans to assist 
        representative payees in conforming to requirements specified 
        by the Commissioner;
            ``(IV) submit a report to the Commissioner on each 
        completed review containing such information as the 
        Commissioner shall require; and
            ``(V) conduct an initial onsite assessment of any 
        organization that begins collecting a fee for its services as a 
        representative payee to ensure that such organization is 
        established as such a representative payee in accordance with 
        requirements specified by the Commissioner.
A protection and advocacy system may refer beneficiaries to other 
programs or services as the protection and advocacy system considers 
appropriate.
    ``(iii) To be eligible to receive grants under this section, a 
protection and advocacy system shall submit an initial application to 
the Commissioner at such time, in such form and manner, and accompanied 
by such information and assurances as the Commissioner may require.
    ``(iv)(I) Subject to subclause (II), the Commissioner shall ensure 
that any funds used for grants under clause (i) shall be allocated to 
the protection and advocacy systems serving each of the States and the 
American Indian consortium in a manner such that the amount provided to 
each protection and advocacy system bears the same ratio to the total 
of such funds as the number of represented beneficiaries in the State 
or American Indian consortium in which such protection and advocacy 
system is located bears to the total number of represented 
beneficiaries.
    ``(II) The amount of an annual grant to a protection and advocacy 
system under clause (i) shall--
            ``(aa) in the case of a protection and advocacy system 
        serving American Samoa, Guam, the United States Virgin Islands, 
        or the Commonwealth of the Northern Mariana Islands, or the 
        American Indian consortium, not be less than $30,000; and
            ``(bb) in the case of a protection and advocacy system 
        serving any other State, not be less than $60,000.
    ``(III) Funds provided to a protection and advocacy system through 
a grant under clause (i) for a 1-year period shall remain available 
through the end of the following 1-year period.
    ``(IV) For purposes of this clause, the term `represented 
beneficiary' means an individual--
            ``(aa) who is entitled to benefits under this title, title 
        VIII, or title XVI; and
            ``(bb) whose benefits have been certified for payment to a 
        representative payee.
    ``(v)(I) The Commissioner shall make annual grants, in an amount 
equal to 4 percent of the total amount of grants awarded each year 
under clause (i), to an eligible national association for the provision 
of training and technical assistance, administrative support, and data 
collection services to protection and advocacy systems in connection 
with grants awarded under clause (i).
    ``(II) In this clause, the term `eligible national association' 
means a national disability association with extensive knowledge and 
demonstrated experience in providing training, technical assistance, 
and administrative oversight to protection and advocacy systems that 
monitor representative payees.
    ``(vi) In conducting reviews under this section, a protection and 
advocacy system shall have the same authorities, including access to 
records, facilities, and persons, as such system would have for 
purposes of providing services under subtitle C of title I of the 
Developmental Disabilities Assistance and Bill of Rights Act of 2000 
(42 U.S.C. 15041 et seq.).
    ``(vii) Whenever benefit amounts under this title are increased by 
any percentage effective with any month after November 2018 as a result 
of a determination made under section 215(i), each of the dollar 
amounts specified in clauses (i)(II) and (iv)(II) shall be increased by 
the same percentage.
    ``(viii) No additional funds are authorized to be appropriated to 
carry out the requirements of this subparagraph. Such requirements 
shall be carried out using amounts otherwise authorized.
    ``(ix) In this subparagraph:
            ``(I) The term `American Indian consortium' means a 
        consortium established under subtitle C of title I of the 
        Developmental Disabilities Assistance and Bill of Rights Act of 
        2000 (42 U.S.C. 15041 et seq.).
            ``(II) The term `protection and advocacy system' means a 
        protection and advocacy system established under subtitle C of 
        title I of the Developmental Disabilities Assistance and Bill 
        of Rights Act of 2000 (42 U.S.C. 15041 et seq.).
            ``(III) The term `State' means the several States of the 
        United States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the United States Virgin Islands, Guam, American 
        Samoa, and the Commonwealth of the Northern Mariana Islands.''.
    (b) Expansion of Periodic Onsite Review Requirements.--Section 
205(j)(6)(A) of the Social Security Act (42 U.S.C. 405(j)(6)(A)) is 
amended--
            (1) in clause (ii), by striking ``or'';
            (2) in clause (iii), by striking the period and inserting 
        ``; or'';
            (3) by adding after clause (iii) the following:
            ``(iv) the representative payee collects a fee for its 
        services.''; and
            (4) by adding after clause (iv) (as added by paragraph (3)) 
        the following flush text:
``The Commissioner shall also conduct periodic onsite reviews of 
individual and organizational payees, including payees who are related 
to the beneficiary and primarily reside in the same household, selected 
on the basis of risk-factors for potential misuse or unsuitability 
associated with such payees or beneficiaries.''.
    (c) Availability of Grant Funds.--
            (1) Protection and advocacy system grants.--Grants 
        described under clause (i) of subparagraph (C) of section 
        205(j)(6) of the Social Security Act (as added by subsection 
        (a)) shall be awarded on August 1, 2018, and annually 
        thereafter, and funds provided by such grants to a protection 
        and advocacy system may be used to reimburse the protection and 
        advocacy system for amounts expended by the protection and 
        advocacy system during the period beginning on May 1, 2018, and 
        ending on such date for hiring and start-up costs in 
        preparation to carry out reviews of representative payees in 
        accordance with such subparagraph.
            (2) National association grants.--Grants described under 
        clause (v) of such subparagraph shall be awarded on May 1, 
        2018, and annually thereafter.

SEC. 102. REDUCING THE BURDEN ON FAMILIES.

    (a) Title II.--Section 205(j)(3) of the Social Security Act (42 
U.S.C. 405(j)(3)) is amended--
            (1) by redesignating subparagraphs (D) through (G) as 
        subparagraphs (E) through (H), respectively;
            (2) by inserting after subparagraph (C) the following:
                    ``(D)(i) Subparagraph (A) shall not apply in any 
                case where the other person to whom such payment is 
                made is--
                                    ``(I) a parent, or other individual 
                                who is a legal guardian of, a minor 
                                child entitled to such payment who 
                                primarily resides in the same 
                                household;
                                    ``(II) a parent of an individual 
                                entitled to such payment who is under a 
                                disability (as defined in section 
                                223(d)) who primarily resides in the 
                                same household; or
                                    ``(III) the spouse of the 
                                individual entitled to such payment.
                    ``(ii) The Commissioner of Social Security shall 
                establish and implement procedures as necessary for the 
                Commissioner to determine the eligibility of such 
                parties for the exemption provided in clause (i). The 
                Commissioner shall prescribe such regulations as may be 
                necessary to determine eligibility for such 
                exemption.'';
            (3) in subparagaph (E) (as so redesignated), by striking 
        ``and (C)'' and inserting ``(C), and (D)''; and
            (4) in subparagraph (F) (as so redesignated), by striking 
        ``(D)'' each place it appears and inserting ``(E)''.
    (b) Title VIII.--Section 807(h) of the Social Security Act (42 
U.S.C. 1007(h)) is amended--
            (1) by redesignating paragraphs (3) through (5) as 
        paragraphs (4) through (6), respectively; and
            (2) by inserting after paragraph (2) the following:
            ``(3)(A) Paragraph (1) shall not apply in any case where 
        the other person to whom such payment is made is the spouse of 
        the individual entitled to such payment.
            ``(B) The Commissioner of Social Security shall establish 
        and implement procedures as necessary for the Commissioner to 
        determine the eligibility of such parties for the exemption 
        provided in subparagraph (A). The Commissioner shall prescribe 
        such regulations as may be necessary to determine eligibility 
        for such exemption.''.
    (c) Title XVI.--Section 1631(a)(2)(C) of the Social Security Act 
(42 U.S.C. 1383(a)(2)(C)) is amended--
            (1) by redesignating clauses (iv) and (v) as clauses (v) 
        and (vi), respectively;
            (2) by inserting after clause (iii) the following:
            ``(iv)(I) Clause (i) shall not apply in any case where the 
        representative payee is--
                    ``(aa) a parent, or other individual who is a legal 
                guardian of, a minor child entitled to such payment who 
                primarily resides in the same household;
                    ``(bb) a parent of an individual entitled to such 
                payment who is under a disability who primarily resides 
                in the same household; or
                    ``(cc) the spouse of the individual entitled to 
                such payment.
            ``(II) The Commissioner of Social Security shall establish 
        and implement procedures as necessary for the Commissioner to 
        determine the eligibility of such parties for the exemption 
        provided in subclause (I). The Commissioner shall prescribe 
        such regulations as may be necessary to determine eligibility 
        for such exemption.'';
            (3) in clause (v) (as so redesignated), by striking ``and 
        (iii)'' and inserting ``(iii), and (iv)''; and
            (4) in clause (vi) (as so redesignated), by striking 
        ``(iv)'' each time it appears and inserting ``(v)''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 103. PROTECTING BENEFICIARIES THROUGH INFORMATION SHARING.

    (a) Information Sharing To Determine State Foster Care Status.--
            (1) In general.--Section 205(j) of the Social Security Act 
        (42 U.S.C. 405(j)) is amended by adding at the end the 
        following:
    ``(11)(A) The Commissioner of Social Security shall--
            ``(i) enter into agreements with each State with a plan 
        approved under part E of title IV for the purpose of sharing 
        and matching data, on an automated monthly basis, in the system 
        of records of the Social Security Administration with each 
        Statewide and Tribal Automated Child Welfare Information System 
        to identify represented minor beneficiaries who are in foster 
        care under the responsibility of the State for such month; and
            ``(ii) in any case in which a represented minor beneficiary 
        has entered or exited foster care or changed foster care 
        placement in such month, redetermine the appropriate 
        representative payee for such individual.
    ``(B) For purposes of this paragraph--
            ``(i) the term `State' has the meaning given such term for 
        purposes of part E of title IV;
            ``(ii) the term `Statewide and Tribal Automated Child 
        Welfare Information System' means a statewide mechanized data 
        collection and information retrieval system described in 
        section 474(a)(3)(C); and
            ``(iii) the term `represented minor beneficiary', with 
        respect to an individual for a month, means a child (as defined 
        for purposes of section 475(8)) entitled to benefits under this 
        title for such month whose benefits are certified for payment 
        to a representative payee.''.
            (2) Conforming change.--Section 471(a)(8)(A) of the Social 
        Security Act (42 U.S.C. 671(a)(8)(A)) is amended by inserting 
        ``the program established by title II,'' after ``XX,''.
            (3) GAO study and report.--
                    (A) Evaluation.--As soon as possible after the date 
                of the enactment of this Act, the Comptroller General 
                shall evaluate--
                            (i) the number of represented minor 
                        beneficiaries in foster care under the 
                        responsibility of a State for each month during 
                        the previous year;
                            (ii) whether the representative payee for 
                        each represented minor beneficiary is--
                                    (I) a governmental child welfare 
                                agency;
                                    (II) an organizational payee that 
                                is not a governmental child welfare 
                                agency;
                                    (III) a foster parent or child-care 
                                institution (within the meaning of part 
                                E of title IV); or
                                    (IV) another individual; and
                            (iii) whether funds were conserved, used 
                        for direct expenses of the minor beneficiary, 
                        or used to reimburse the State for foster care 
                        maintenance costs.
                    (B) Report to congress.--Not later than 36 months 
                after the date of enactment of this Act, the 
                Comptroller General shall submit to Congress a report 
                on the results of the evaluation required under 
                subparagraph (A).
                    (C) Definitions.--For purposes of this paragraph--
                            (i) the term ``State'' has the meaning 
                        given such term for purposes of part E of title 
                        IV of the Social Security Act; and
                            (ii) the term ``represented minor 
                        beneficiary'', with respect to an individual 
                        for a month, means a child (as defined for 
                        purposes of section 475(8) of the Social 
                        Security Act) entitled to benefits under title 
                        II of such Act for such month whose benefits 
                        are certified for payment to a representative 
                        payee.
            (4) Effective date.--
                    (A) In general.--The amendments made by this 
                subsection shall apply with respect to months beginning 
                on or after the date that is 1 year after the date of 
                the enactment of this Act.
                    (B) Exception if state legislation required.--In 
                the case of a State plan under part E of title IV of 
                the Social Security Act that the Secretary of Health 
                and Human Services determines requires State 
                legislation (other than legislation appropriating 
                funds) in order for the plan to meet the additional 
                requirement imposed by the amendments made under this 
                subsection, such plan shall not be regarded as failing 
                to comply with the requirements of such title solely on 
                the basis of its failure to meet this additional 
                requirement before the first day of the first calendar 
                quarter beginning after the close of the first regular 
                session of the State legislature that begins after the 
                date of the enactment of this Act. For purposes of the 
                previous sentence, in the case of a State that has a 2-
                year legislative session, each year of such session 
                shall be deemed to be a separate regular session of the 
                State legislature.
    (b) Improving Coordination With Adult Protective Services.--
            (1) In general.--The Commissioner of Social Security shall 
        study and test the administrative feasibility of improving 
        information sharing, in partnership with State agencies that 
        provide adult protective services, with respect to--
                    (A) the assessment of an individual's need for a 
                representative payee in connection with benefits to 
                which the individual is entitled under title II or 
                title XVI of the Social Security Act; and
                    (B) oversight of individuals and organizations 
                serving as representative payees.
            (2) Report.--Not later than June 30, 2022, the Commissioner 
        of Social Security shall conclude the study described in 
        paragraph (1) and submit to the Committee on Ways and Means of 
        the House of Representatives and the Committee on Finance of 
        the Senate a report on the results of such study.
    (c) Study on Potential To Coordinate With State Courts.--
            (1) In general.--The Commissioner of Social Security shall 
        enter into an agreement with the Administrative Conference of 
        the United States to conduct a study that includes--
                    (A) an overview of potential opportunities for 
                information sharing between the Social Security 
                Administration and State courts and relevant State 
                agencies;
                    (B) a detailed analysis of the barriers to such 
                information sharing, including any Federal or State 
                statutory barriers;
                    (C) a description of how such information sharing 
                would be implemented, including any additional 
                infrastructure needed; and
                    (D) a description of any risks or other factors 
                that the Social Security Administration and the 
                Congress should consider before implementing such 
                information sharing.
            (2) Report.--Not later than June 30, 2020, the Commissioner 
        of Social Security shall submit to the Committee on Ways and 
        Means of the House of Representatives and the Committee on 
        Finance of the Senate and make publicly available a report on 
        the results of the study conducted under paragraph (1).

SEC. 104. CLARIFYING OVERPAYMENT LIABILITY FOR CHILD IN CHILD WELFARE 
              SYSTEM.

    (a) Amendment to Title II.--Section 204(a) of the Social Security 
Act (42 U.S.C. 404(a)) is amended by adding at the end the following:
    ``(3)(A) When any payment of more than the correct amount is made 
on behalf of an individual who is a represented minor beneficiary for a 
month in which such individual is in foster care under the 
responsibility of a State and the State is the representative payee of 
such individual, the State shall be liable for the repayment of the 
overpayment, and there shall be no adjustment of payments to, or 
recovery by the United States from, such individual.
    ``(B) For purposes of this paragraph, the term `represented minor 
beneficiary' has the meaning given such term in subsection 
(j)(11)(B)(iii).''.
    (b) Amendment to Title XVI.--Section 1631(b) of the Social Security 
Act (42 U.S.C. 1683(b)) is amended--
            (1) by redesignating paragraphs (3) through (7) as 
        paragraphs (4) through (8), respectively; and
            (2) by inserting after paragraph (2) the following:
    ``(3)(A) When any payment of more than the correct amount is made 
on behalf of an individual who is a represented minor beneficiary for a 
month in which such individual is in foster care under the 
responsibility of a State and the State is the representative payee of 
such individual, the State shall be liable for the repayment of the 
overpayment, and there shall be no adjustment of payments to, or 
recovery by the United States from, such individual.
    ``(B) For purposes of this paragraph, the term `represented minor 
beneficiary', with respect to an individual for a month, means a child 
(as defined for purposes of section 475(8)) entitled to benefits under 
this title for such month whose benefits are certified for payment to a 
representative payee.''.
    (c) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to overpayment determinations made on or after the 
date of the enactment of this Act and to any other overpaid amounts 
that have not been recovered as of such date.

SEC. 105. REPORTS.

    (a) Report on Benefits Misused.--Section 205(j) of the Social 
Security Act (42 U.S.C. 405(j)), as amended by section 103(a), is 
further amended--
            (1) in paragraph (6)--
                    (A) by striking ``(A) In addition to'' and 
                inserting ``In addition to''; and
                    (B) by striking subparagraph (B); and
            (2) by adding at the end the following:
    ``(12)(A) Not later than January 31 of each fiscal year, the 
Commissioner shall submit to the Committee on Ways and Means of the 
House of Representatives and the Committee on Finance of the Senate a 
report on the total number of individuals entitled to benefits under 
titles II, VIII, and XVI, respectively, (and the number of individuals 
concurrently entitled to benefits under more than one such title) who 
have a representative payee, the total number of such representative 
payees, and the results of all reviews of representative payees 
conducted during the previous fiscal year in connection with benefits 
under this title, title VIII, or title XVI. Such report shall summarize 
problems identified in such reviews and corrective actions taken or 
planned to be taken to correct such problems, and shall include--
            ``(i) the number of such reviews;
            ``(ii) the results of such reviews;
            ``(iii) the number of cases in which the representative 
        payee was changed and why;
            ``(iv) the number of reviews conducted in response to 
        allegations or concerns about the performance or suitability of 
        the payee;
            ``(v) the number of cases discovered in which there was a 
        misuse of funds, and the total dollar amount of benefits 
        determined by the Commissioner during such fiscal year to have 
        been misused by a representative payee (regardless of the 
        fiscal year in which such misuse occurred);
            ``(vi) the number of cases discovered in which such misuse 
        of funds resulted from the negligent failure of the 
        Commissioner to investigate or monitor a representative payee;
            ``(vii) the final disposition of such cases of misuse of 
        funds, including--
                    ``(I) any criminal, civil, and administrative 
                penalties imposed;
                    ``(II) the total dollar amount of misused benefits 
                repaid to beneficiaries and alternative representative 
                payees under each of--
                            ``(aa) paragraph (5) (on the basis of a 
                        negligent failure of the Commissioner described 
                        in such paragraph);
                            ``(bb) paragraph (5) (on any other basis); 
                        and
                            ``(cc) paragraph (7);
                    ``(III) the total dollar amount of misused benefits 
                recovered under each of--
                            ``(aa) paragraph (5); and
                            ``(bb) paragraph (7);
            ``(viii) any updates to prior year reports necessary to 
        reflect subsequent recoveries and repayments pertaining to 
        misuse determinations made in prior years; and
            ``(ix) such other information as the Commissioner deems 
        appropriate.
    ``(B) Each report required under this paragraph for a fiscal year 
shall include the information described in clauses (i) through (ix) of 
subparagraph (A) with respect to--
            ``(i) all representative payees reviewed during such fiscal 
        year;
            ``(ii) all such representative payees that are 
        organizations, separated by whether such organization collects 
        a fee for its services as a representative payee;
            ``(iii) all such representative payees that are individuals 
        serving 15 or more individuals; and
            ``(iv) all such representative payees that are individuals 
        serving less than 15 individuals, separated by whether such 
        representative payee is a family member.''.
    (b) Report on Elimination of the Accounting Form.--The Commissioner 
shall--
            (1) conduct a study on the changes made by the amendments 
        made by section 102 of the Strengthening Protections for Social 
        Security Beneficiaries Act of 2018, which shall include the 
        impact of such changes on families, beneficiaries, and the 
        operations of the Social Security Administration; and
            (2) not later than January 1, 2021, submit a report on the 
        results of such study to the Committee on Ways and Means of the 
        House of Representatives and the Committee on Finance of the 
        Senate.
    (c) Report on the Advanced Designation Policy.--The Commissioner 
shall--
            (1) conduct a study on the changes made by the amendments 
        made by section 201 of the Strengthening Protections for Social 
        Security Beneficiaries Act of 2018, which shall include the 
        impact of such changes on beneficiaries and the operations of 
        the Social Security Administration; and
            (2) not later than January 1, 2025, submit a report on the 
        results of such study to the Committee on Ways and Means of the 
        House of Representatives and the Committee on Finance of the 
        Senate.

            TITLE II--IMPROVING PAYEE SELECTION AND QUALITY

SEC. 201. ADVANCE DESIGNATION OF REPRESENTATIVE PAYEES.

    (a) In General.--Section 205(j)(1) of the Social Security Act (42 
U.S.C. 405(j)(1)) is amended by adding at the end the following:
    ``(C)(i) An individual who is entitled to or is an applicant for a 
benefit under this title, title VIII, or title XVI, who has attained 18 
years of age or is an emancipated minor, may, at any time, designate 
one or more other individuals to serve as a representative payee for 
such individual in the event that the Commissioner of Social Security 
determines under subparagraph (A) that the interest of such individual 
would be served by certification for payment of such benefits to which 
the individual is entitled to a representative payee. If the 
Commissioner of Social Security makes such a determination with respect 
to such individual at any time after such designation has been made, 
the Commissioner shall--
            ``(I) certify payment of such benefits to the designated 
        individual, subject to the requirements of paragraph (2); or
            ``(II) if the Commissioner determines that certification 
        for payment of such benefits to the designated individual would 
        not satisfy the requirements of paragraph (2), that the 
        designated individual is unwilling or unable to serve as 
        representative payee, or that other good cause exists, certify 
        payment of such benefits to another individual or organization, 
        in accordance with paragraph (1).
    ``(ii) An organization may not be designated to serve as a 
representative payee under this subparagraph.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date that is 2 years after the date of the enactment 
of this section.
    (c) Regulations.--Not later than 18 months after the date of the 
enactment of this section, the Commissioner of Social Security shall 
promulgate regulations specifying the information an individual is 
required to provide to the Commissioner in order to designate another 
individual to serve as the individual's representative payee under 
section 205(j)(1)(C) of the Social Security Act (as added by subsection 
(a)).
    (d) Notification to Beneficiaries.--Not later than January 1, 2020, 
and annually thereafter, the Commissioner of Social Security shall 
notify each individual entitled to a benefit under title II, VIII, or 
XVI of the Social Security Act of the name of any individual designated 
to serve as the individual's representative payee under section 
205(j)(1)(C) of such Act (as added by subsection (a)).

SEC. 202. PROHIBITION ON INDIVIDUALS CONVICTED OF CERTAIN CRIMES 
              SERVING AS REPRESENTATIVE PAYEES.

    (a) Amendments to Title II.--Section 205(j)(2) of the Social 
Security Act (42 U.S.C. 405(j)(2)) is amended--
            (1) in subparagraph (B)--
                    (A) in clause (i)--
                            (i) in subclause (V), by striking ``and'' 
                        at the end;
                            (ii) in subclause (VI), by striking the 
                        period and inserting ``, and''; and
                            (iii) by adding at the end the following:
            ``(VII) determine whether such person has been convicted 
        (and not subsequently exonerated), under Federal or State law, 
        of a felony provided under clause (iv), or of an attempt or a 
        conspiracy to commit such a felony.''; and
                    (B) by adding at the end the following:
    ``(iv) The felony crimes provided under this clause, whether an 
offense under State or Federal law, are the following:
            ``(I) Human trafficking, including as prohibited under 
        sections 1590 and 1591 of title 18, United States Code.
            ``(II) False imprisonment, including as prohibited under 
        section 1201 of title 18, United States Code.
            ``(III) Kidnapping, including as prohibited under section 
        1201 of title 18, United States Code.
            ``(IV) Rape and sexual assault, including as prohibited 
        under sections 2241, 2242, 2243, and 2244 of title 18, United 
        States Code.
            ``(V) First-degree homicide, including as prohibited under 
        section 1111 of title 18, United States Code.
            ``(VI) Robbery, including as prohibited under section 2111 
        of title 18, United States Code.
            ``(VII) Fraud to obtain access to government assistance, 
        including as prohibited under sections 287, 1001, and 1343 of 
        title 18, United States Code.
            ``(VIII) Fraud by scheme, including as prohibited under 
        section 1343 of title 18, United States Code.
            ``(IX) Theft of government funds or property, including as 
        prohibited under section 641 of title 18, United States Code.
            ``(X) Abuse or neglect, including as prohibited under 
        sections 111, 113, 114, 115, 116, or 117 of title 18, United 
        States Code.
            ``(XI) Forgery, including as prohibited under section 642 
        and chapter 25 (except section 512) of title 18, United States 
        Code.
            ``(XII) Identity theft or identity fraud, including as 
        prohibited under sections 1028 and 1028A of title 18, United 
        States Code.
The Commissioner of Social Security may promulgate regulations to 
provide for additional felony crimes under this clause.
    ``(v)(I) For the purpose of carrying out the activities required 
under subparagraph (B)(i) as part of the investigation under 
subparagraph (A)(i), the Commissioner may conduct a background check of 
any individual seeking to serve as a representative payee under this 
subsection and may disqualify from service as a representative payee 
any such individual who fails to grant permission for the Commissioner 
to conduct such a background check.
    ``(II) The Commissioner may revoke certification of payment of 
benefits under this subsection to any individual serving as a 
representative payee on or after January 1, 2019 who fails to grant 
permission for the Commissioner to conduct such a background check.''; 
and
            (2) in subparagraph (C)--
                    (A) in clause (i)--
                            (i) in subclause (IV), by striking ``or'' 
                        at the end;
                            (ii) in subclause (V), by striking the 
                        period at the end and inserting ``, or''; and
                            (iii) by adding at the end the following:
            ``(VI) except as provided in clause (vi), such person has 
        previously been convicted (and not subsequently exonerated) as 
        described in subparagraph (B)(i)(VII).''; and
                    (B) by adding at the end the following:
    ``(vi)(I) With respect to any person described in subclause (II)--
            ``(aa) subparagraph (B)(i)(VII) shall not apply; and
            ``(bb) the Commissioner may grant an exemption from the 
        provisions of clause (i)(VI) if the Commissioner determines 
        that such exemption is in the best interest of the individual 
        entitled to benefits.
    ``(II) A person is described in this subclause if the person--
            ``(aa) is the custodial parent of a minor child for whom 
        the person applies to serve;
            ``(bb) is the custodial spouse of the beneficiary for whom 
        the person applies to serve;
            ``(cc) is the custodial parent of a beneficiary who is 
        under a disability (as defined in section 223(d)) which began 
        before the beneficiary attained the age of 22, for whom the 
        person applies to serve;
            ``(dd) is the custodial court appointed guardian of the 
        beneficiary for whom the person applies to serve;
            ``(ee) is the custodial grandparent of a minor grandchild 
        for whom the person applies to serve;
            ``(ff) is the parent who was previously representative 
        payee for his or her minor child who has since turned 18 and 
        continues to be eligible for such benefit; or
            ``(gg) received a presidential or gubernatorial pardon for 
        the relevant conviction.''.
    (b) Amendments to Title VIII.--Section 807 of the Social Security 
Act (42 U.S.C. 1007) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (2)--
                            (i) in subparagraph (E), by striking 
                        ``and'' at the end;
                            (ii) in subparagraph (F), by striking the 
                        period and inserting ``, and''; and
                            (iii) by adding at the end the following:
                    ``(G) determine whether such person has been 
                convicted (and not subsequently exonerated), under 
                Federal or State law, of a felony provided under 
                paragraph (4), or of an attempt or a conspiracy to 
                commit such a felony.''; and
                    (B) by adding at the end the following:
            ``(4) The felony crimes provided under this paragraph, 
        whether an offense under State or Federal law, are the 
        following:
                    ``(A) Human trafficking, including as prohibited 
                under sections 1590 and 1591 of title 18, United States 
                Code.
                    ``(B) False imprisonment, including as prohibited 
                under section 1201 of title 18, United States Code.
                    ``(C) Kidnapping, including as prohibited under 
                section 1201 of title 18, United States Code.
                    ``(D) Rape and sexual assault, including as 
                prohibited under sections 2241, 2242, 2243, and 2244 of 
                title 18, United States Code.
                    ``(E) First-degree homicide, including as 
                prohibited under section 1111 of title 18, United 
                States Code.
                    ``(F) Robbery, including as prohibited under 
                section 2111 of title 18, United States Code.
                    ``(G) Fraud to obtain access to government 
                assistance, including as prohibited under sections 287, 
                1001, and 1343 of title 18, United States Code.
                    ``(H) Fraud by scheme, including as prohibited 
                under section 1343 of title 18, United States Code.
                    ``(I) Theft of government funds or property, 
                including as prohibited under section 641 of title 18, 
                United States Code.
                    ``(J) Abuse or neglect, including as prohibited 
                under sections 111, 113, 114, 115, 116, or 117 of title 
                18, United States Code.
                    ``(K) Forgery, including as prohibited under 
                section 642 and chapter 25 (except section 512) of 
                title 18, United States Code.
                    ``(L) Identity theft or identity fraud, including 
                as prohibited under sections 1028 and 1028A of title 
                18, United States Code.
        The Commissioner of Social Security may promulgate regulations 
        to provide for additional felony crimes under this clause.
    ``(5)(A) For the purpose of carrying out the activities required 
under paragraph (2) as part of the investigation under paragraph 
(1)(A), the Commissioner may conduct a background check of any 
individual seeking to serve as a representative payee under this 
subsection and may disqualify from service as a representative payee 
any such individual who fails to grant permission for the Commissioner 
to conduct such a background check.
    ``(B) The Commissioner may revoke certification of payment of 
benefits under this subsection to any individual serving as a 
representative payee on or after January 1, 2019 who fails to grant 
permission for the Commissioner to conduct such a background check.''; 
and
            (2) in subsection (d)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (D), by striking ``or'' 
                        at the end;
                            (ii) in subparagraph (E), by striking the 
                        period at the end and inserting ``, or''; and
                            (iii) by adding at the end the following:
                    ``(F) except as provided in paragraph (2)(D), such 
                person has previously been convicted (and not 
                subsequently exonerated) as described in subsection 
                (b)(2)(G).''; and
                    (B) in paragraph (2), by adding at the end the 
                following:
    ``(D)(i) With respect to any person described in clause (II)--
    ``(I) subsection (b)(2)(G) shall not apply; and
    ``(II) the Commissioner may grant an exemption from the provisions 
of paragraph (1)(F) if the Commissioner determines that such exemption 
is in the best interest of the individual entitled to benefits.
    ``(ii) A person is described in this clause if the person--
    ``(I) is the custodial spouse of the beneficiary for whom the 
person applies to serve;
    ``(II) is the custodial court appointed guardian of the beneficiary 
for whom the person applies to serve; or
    ``(III) received a presidential or gubernatorial pardon for the 
relevant conviction.''.
    (c) Amendments to Title XVI.--Section 1631(a)(2)(B) of the Social 
Security Act (42 U.S.C. 1383(a)(2)(B)) is amended--
            (1) in clause (ii)--
                    (A) in subclause (V), by striking ``and'' at the 
                end;
                    (B) in subclause (VI), by striking the period and 
                inserting ``, and''; and
                    (C) by adding at the end the following:
            ``(VII) determine whether such person has been convicted 
        (and not subsequently exonerated), under Federal or State law, 
        of a felony provided under clause (xv), or of an attempt or a 
        conspiracy to commit such a felony.'';
            (2) in clause (iii)--
                    (A) in subclause (IV), by striking ``or'' at the 
                end;
                    (B) in subclause (V), by striking the period at the 
                end and inserting ``, or''; and
                    (C) by adding at the end the following:
            ``(VI) except as provided in clause (xvii), such person has 
        previously been convicted (and not subsequently exonerated) as 
        described in clause (ii)(VII).''; and
            (3) by adding at the end the following:
    ``(xv) The felony crimes provided under this clause, whether an 
offense under State or Federal law, are the following:
            ``(I) Human trafficking, including as prohibited under 
        sections 1590 and 1591 of title 18, United States Code.
            ``(II) False imprisonment, including as prohibited under 
        section 1201 of title 18, United States Code.
            ``(III) Kidnapping, including as prohibited under section 
        1201 of title 18, United States Code.
            ``(IV) Rape and sexual assault, including as prohibited 
        under sections 2241, 2242, 2243, and 2244 of title 18, United 
        States Code.
            ``(V) First-degree homicide, including as prohibited under 
        section 1111 of title 18, United States Code.
            ``(VI) Robbery, including as prohibited under section 2111 
        of title 18, United States Code.
            ``(VII) Fraud to obtain access to government assistance, 
        including as prohibited under sections 287, 1001, and 1343 of 
        title 18, United States Code.
            ``(VIII) Fraud by scheme, including as prohibited under 
        section 1343 of title 18, United States Code.
            ``(IX) Theft of government funds or property, including as 
        prohibited under section 641 of title 18, United States Code.
            ``(X) Abuse or neglect, including as prohibited under 
        sections 111, 113, 114, 115, 116, or 117 of title 18, United 
        States Code.
            ``(XI) Forgery, including as prohibited under section 642 
        and chapter 25 (except section 512) of title 18, United States 
        Code.
            ``(XII) Identity theft or identity fraud, including as 
        prohibited under sections 1028 and 1028A of title 18, United 
        States Code.
The Commissioner of Social Security may promulgate regulations to 
provide for additional felony crimes under this clause.
    ``(xvi)(I) For the purpose of carrying out the activities required 
under clause (ii) as part of the investigation under clause (i)(I), the 
Commissioner may conduct a background check of any individual seeking 
to serve as a representative payee under this subsection and may 
disqualify from service as a representative payee any such individual 
who fails to grant permission for the Commissioner to conduct such a 
background check.
    ``(II) The Commissioner may revoke certification of payment of 
benefits under this subsection to any individual serving as a 
representative payee on or after January 1, 2019 who fails to grant 
permission for the Commissioner to conduct such a background check.
    ``(xvii)(I) With respect to any person described in subclause 
(II)--
            ``(aa) clause (ii)(VII) shall not apply; and
            ``(bb) the Commissioner may grant an exemption from the 
        provisions of clause (iii)(VI) if the Commissioner determines 
        that such exemption is in the best interest of the individual 
        entitled to benefits.
    ``(II) A person is described in this subclause if the person--
            ``(aa) is the custodial parent of a minor child for whom 
        the person applies to serve;
            ``(bb) is the custodial spouse of the beneficiary for whom 
        the person applies to serve;
            ``(cc) is the custodial parent of a beneficiary who is 
        under a disability which began before the beneficiary attained 
        the age of 22, for whom the person applies to serve;
            ``(dd) is the custodial court appointed guardian of the 
        beneficiary for whom the person applies to serve;
            ``(ee) is the custodial grandparent of a minor grandchild 
        for whom the person applies to serve;
            ``(ff) is the parent who was previously representative 
        payee for his or her minor child who has since turned 18 and 
        continues to be eligible for such benefit; or
            ``(gg) received a presidential or gubernatorial pardon for 
        the relevant conviction.''.
    (d) Application to New Appointments.--Subject to subsection (e), 
the amendments made by subsections (a), (b), and (c) shall apply with 
respect to any individual appointed to serve as a representative payee 
pursuant to section 205(j), 807, or 1631(a)(2) of the Social Security 
Act on or after January 1, 2019.
    (e) Application to Prior Appointments.--
            (1) In general.--Not later than January 1, 2024, the 
        Commissioner of Social Security shall conduct a review of each 
        individual serving as a representative payee pursuant to 
        205(j), 807, or 1631(a)(2) of the Social Security Act, to 
        determine whether such individual has been convicted of a 
        felony as described in section 205(j)(2)(B)(i)(VII), 
        807(b)(2)(G), or 1631(a)(2)(B)(ii)(VII), respectively (as such 
        provisions are added by this section). Except as provided in 
        section 205(j)(2)(C)(vi), 807(d)(2)(D), or 1631(a)(2)(B)(xvii) 
        (as so added), any individual determined by the Commissioner to 
        have been so convicted may not serve as a representative payee 
        on or after the date of such determination.
            (2) Priority.--In conducting reviews under paragraph (1), 
        the Commissioner shall prioritize reviews of the following 
        categories of individuals, in the following order:
                    (A) An individual serving as representative payee 
                for 15 or more individuals.
                    (B) An individual serving as representative payee 
                for an individual who is not related to the 
                representative payee.
                    (C) An individual serving as representative payee 
                for an individual who has attained the age of 18 and is 
                not the spouse of the representative payee.
    (f) Periodic Review.--Not later than 1 year after the date of 
enactment of this section, the Commissioner of Social Security shall 
issue regulations to establish a process for reviewing each individual 
serving as a representative payee pursuant to section 205(j), 807, or 
1631(a)(2) of the Social Security Act (other than individuals with 
respect to whom an exemption has been granted under section 
205(j)(2)(C)(vi), 807(d)(2)(D), or 1631(a)(2)(B)(xvii)) not less than 
once every 5 years to determine whether any such individual has been 
convicted of a felony as described in subsection (e)(1) of this 
section.

SEC. 203. PROHIBITION ON INDIVIDUALS WITH REPRESENTATIVE PAYEES SERVING 
              AS REPRESENTATIVE PAYEES.

    (a) Amendment to Title II.--Section 205(j)(2)(C)(i) of the Social 
Security Act (42 U.S.C. 405(j)(2)(C)(i)), as amended by section 
202(a)(2), is further amended--
            (1) in subclause (V), by striking ``or'' at the end;
            (2) in subclause (VI), by striking the period and inserting 
        ``, or''; and
            (3) by adding at the end the following:
            ``(VII) such person's benefits under this title, title 
        VIII, or title XVI are certified for payment to a 
        representative payee during the period for which the 
        individual's benefits would be certified for payment to another 
        person.''.
    (b) Amendment to Title VIII.--Section 807(d)(1) of the Social 
Security Act (42 U.S.C. 1007(d)(1)), as amended by section 202(b)(2), 
is further amended--
            (1) in subparagraph (E), by striking ``or'' at the end;
            (2) in subparagraph (F), by striking the period and 
        inserting ``, or''; and
            (3) by adding at the end the following:
                    ``(G) such person's benefits under this title, 
                title II, or title XVI are certified for payment to a 
                representative payee during the period for which the 
                individual's benefits would be certified for payment to 
                another person.''.
    (c) Amendment to Title XVI.--Section 1631(a)(2)(B)(iii) of the 
Social Security Act (42 U.S.C. 1383(a)(2)(B)(iii)), as amended by 
section 202(c)(2), is further amended--
            (1) in subclause (V), by striking ``or'' at the end;
            (2) in subclause (VI), by striking the period and inserting 
        ``, or''; and
            (3) by adding at the end the following:
            ``(VII) such person's benefits under this title, title II, 
        or title VIII are certified for payment to a representative 
        payee during the period for which the individual's benefits 
        would be certified for payment to another person.''.
    (d) Effective Date.--
            (1) New appointments.--Subject to paragraph (2), the 
        amendments made by this section shall apply with respect to any 
        individual appointed to serve as a representative payee under 
        title II, title VIII, or title XVI of the Social Security Act 
        on or after January 1, 2019.
            (2) Prior appointments.--With respect to individuals 
        serving as a representative payee whose benefits under this 
        title, title VIII, or title XVI are certified for payment to 
        another representative payee as of January 1, 2019, the 
        Commissioner shall take any steps necessary to terminate such 
        individual's service as a representative payee as soon as 
        possible, but no later than January 1, 2024.

SEC. 204. REASSESSMENT OF PAYEE SELECTION AND REPLACEMENT POLICIES.

    (a) In General.--The Commissioner of Social Security shall conduct, 
with opportunity for public comment, a review and reassessment of--
            (1) the appropriateness of its order of preference for 
        selecting representative payees, including payees who may be 
        creditors of the beneficiary or who are private, for-profit 
        institutions; and
            (2) the effectiveness of its policy and operational 
        procedures in properly determining when to change a 
        representative payee, including--
                    (A) from a payee that has a higher order of 
                preference (such as a family member) to a payee that 
                has a lower order of preference (such as a creditor); 
                or
                    (B) when a request to change payees arises from 
                someone other than the beneficiary.
    (b) Report.--Not later than 18 months after the date of the 
enactment of this Act, the Commissioner of Social Security shall submit 
to the Committee on Ways and Means of the House of Representatives and 
the Committee on Finance of the Senate and make publicly available a 
report on the results of the review and reassessment under subsection 
(a).

            Passed the House of Representatives February 5, 2018.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.
```