I
106TH CONGRESS
2D SESSION
H. R. 4651
To amend the Social Security Act to provide additional safeguards for bene-
ficiaries with representative payees under the old-age, survivors, and
disability insurance program or the supplemental security income pro-
gram.
IN THE HOUSE OF REPRESENTATIVES
JUNE 13, 2000
Mr. WISE introduced the following bill; which was referred to the Committee
on Ways and Means
A BILL
To amend the Social Security Act to provide additional safe-
guards for beneficiaries with representative payees under
the old-age, survivors, and disability insurance program
or the supplemental security income program.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. AUTHORITY TO REISSUE BENEFITS MISUSED
BY 
ORGANIZATIONAL 
REPRESENTATIVE
PAYEES.
(a) OASDI AMENDMENT.—Section 205(j)(5) of the
Social Security Act (42 U.S.C. 405(j)(5)) is amended by
inserting after the first sentence the following new sen-
tence: ‘‘In any case in which a representative payee—
‘‘(i) that is not an individual (regardless of
whether it is a ‘qualified organization’ within the
meaning of paragraph (4)(B)); or
‘‘(ii) is an individual who, for any month during
a period when misuse occurs, served 20 or more
beneficiaries,
misuses all or part of an individual’s benefit paid to such
representative payee, the Commissioner of Social Security
shall certify for payment to the beneficiary or the bene-
ficiary’s alternative representative payee an amount equal
to the amount of such benefit so misused. The provisions
of this paragraph are subject to the limitations of para-
graph (6)(B).’’.
(b) SSI AMENDMENT.—Section 1631(a)(2)(E) of
such Act (42 U.S.C. 1383(a)(2)(E)) is amended by insert-
ing after the first sentence the following new sentence: ‘‘In
any case in which a representative payee—
‘‘(i) that is not an individual (regardless of
whether it is a ‘qualified organization’ within the
meaning of subparagraph (D)(ii)); or
‘‘(ii) is an individual who, for any month during
a period when misuse occurs, served 20 or more
beneficiaries,
misuses all or part of an individual’s benefit paid to such
representative payee, the Commissioner of Social Security
shall make payment to the beneficiary or the beneficiary’s
alternative representative payee of an amount equal to the
amount of such benefit so misused. The provisions of this
subparagraph are subject to the limitations of subpara-
graph (F)(ii).’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to any case of benefit misuse by
a representative payee with respect to which the Commis-
sioner makes the determination of misuse after the date
of the enactment of the Omnibus Budget Reconciliation
Act of 1990 (Public Law 101–501).
SEC. 2. BONDING AND LICENSING REQUIREMENTS APPLI-
CABLE TO NONGOVERNMENTAL ORGANIZA-
TIONAL REPRESENTATIVE PAYEES.
(a) OASDI AMENDMENT.—Section 205(j)(4)(B) of
the Social Security Act (42 U.S.C. 405(j)(4)(B)) is
amended by striking ‘‘is bonded or licensed in each State
in which it serves as a representative payee’’ and inserting
‘‘provides a bond that meets the requirements specified by
the Commissioner of Social Security, and is licensed in
each State in which it serves as a representative payee
(if licensing is available in such State)’’.
(b) SSI AMENDMENT.—Section 1631(a)(2)(D)(ii)(I)
of such Act (42 U.S.C. 1383(a)(2)(D)(ii)(I)) is amended
to read as follows:
‘‘(I) provides a bond that meets the require-
ments specified by the Commissioner of Social Secu-
rity, and is licensed in each State in which it serves
as a representative payee (if licensing is available in
such State); and’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the first day of the thir-
teenth month beginning after the date of the enactment
of this Act.
SEC. 3. FEE FORFEITURE IN CASE OF BENEFIT MISUSE BY
REPRESENTATIVE PAYEES.
(a) OASDI AMENDMENT.—Section 205(j)(4)(A)(i) of
the Social Security Act (42 U.S.C. 405(j)(4)(A)(i)) is
amended—
(1) in the first sentence, by striking ‘‘A’’ and
inserting ‘‘Except as provided in the next sentence,
a’’; and
(2) by inserting before the second sentence the
following new sentence: ‘‘A qualified organization
may not collect a fee from an individual for any
month with respect to which the Commissioner of
Social Security or a court of competent jurisdiction
has determined that the organization misused all or
part of the individual’s benefit, and any amount so
collected by the qualified organization for such
month shall be treated as a misused part of the indi-
vidual’s benefit for purposes of paragraphs (5) and
(6).’’.
(b) SSI AMENDMENT.—Section 1631(a)(2)(D)(i) of
such Act (42 U.S.C. 1383(a)(2)(D)(i)) is amended—
(1) in the first sentence, by striking ‘‘A’’ and
inserting ‘‘Except as provided in the next sentence,
a’’; and
(2) by inserting before the second sentence the
following new sentence: ‘‘A qualified organization
may not collect a fee from an individual for any
month with respect to which the Commissioner of
Social Security or a court of competent jurisdiction
has determined that the organization misused all or
part of the individual’s benefit, and any amount so
collected by the qualified organization for such
month shall be treated as a misused part of the indi-
vidual’s benefit for purposes of subparagraphs (E)
and (F).’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to any month involving benefit mis-
use by a representative payee in any case with respect to
which the Commissioner makes the determination of mis-
use after December 31, 1999.
SEC. 4. LIABILITY OF REPRESENTATIVE PAYEES FOR MIS-
USED BENEFITS.
(a) OASDI AMENDMENT.—Section 205(j) of the So-
cial Security Act (42 U.S.C. 405(j)) is amended by redes-
ignating paragraphs (6) and (7) as paragraphs (7) and
(8), respectively, and inserting after paragraph (5) the fol-
lowing new paragraph:
‘‘(6)(A) If the Commissioner of Social Security or a
court of competent jurisdiction determines that a rep-
resentative payee that is not a State or local government
agency has misused all or part of an individual’s benefit
that was paid to such representative payee under this sub-
section, the representative payee shall be liable for the
amount misused, and such amount (to the extent not re-
paid by the representative payee) shall be treated as an
overpayment of benefits under this title to the representa-
tive payee for all purposes of this Act and related laws
pertaining to the recovery of such overpayments. Subject
to subparagraph (B), upon recovering all or any part of
such amount, the Commissioner shall certify an amount
equal to the recovered amount for payment to such indi-
vidual or the individual’s alternative representative payee.
‘‘(B) The total of the amount certified to such indi-
vidual or the individual’s alternative representative payee
under subparagraph (A) and the amount certified under
paragraph (5) may not exceed the total benefit amount
misused by the representative payee with respect to such
individual.’’.
(b) SSI AMENDMENT.—Section 1631(a)(2) of such
Act (42 U.S.C. 1383(a)(2)) is amended by redesignating
subparagraphs (F), (G), and (H) as subparagraphs (G),
(H), and (I), respectively, and inserting after subpara-
graph (E) the following new subparagraph:
‘‘(F)(i) If the Commissioner of Social Security or a
court of competent jurisdiction determines that a rep-
resentative payee that is not a State or local government
agency has misused all or part of an individual’s benefit
that was paid to such representative payee under this
paragraph, the representative payee shall be liable for the
amount misused, and such amount (to the extent not re-
paid by the representative payee) shall be treated as an
overpayment of benefits under this title to the representa-
tive payee for all purposes of this Act and related laws
pertaining to the recovery of such overpayments. Subject
to clause (ii), upon recovering all or any part of such
amount, the Commissioner shall make payment of an
amount equal to the recovered amount to such individual
or the individual’s alternative representative payee.
‘‘(ii) The total of the amount paid to such individual
or the individual’s alternative representative payee under
clause (i) and the amount paid under subparagraph (E)
may not exceed the total benefit amount misused by the
representative payee with respect to such individual.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to benefit misuse by a representa-
tive payee in any case with respect to which the Commis-
sioner makes the determination of misuse after December
31, 1999.
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