H. R. 3443—24
‘‘(2) who is a World War II veteran;
‘‘(3) who is eligible for a supplemental security income
benefit under title XVI for—
‘‘(A) the month in which this title is enacted; and
‘‘(B) the month in which the individual files an applica-
tion for benefits under this title;
‘‘(4) whose total benefit income is less than 75 percent
of the Federal benefit rate under title XVI;
‘‘(5) who has filed an application for benefits under this
title; and
‘‘(6) who is in compliance with all requirements imposed
by the Commissioner of Social Security under this title,
shall be a qualified individual for purposes of this title.
‘‘SEC. 803. RESIDENCE OUTSIDE THE UNITED STATES.
‘‘For purposes of section 801, with respect to any month, an
individual shall be regarded as residing outside the United States
if, on the first day of the month, the individual so resides outside
the United States.
‘‘SEC. 804. DISQUALIFICATIONS.
‘‘(a) IN GENERAL.—Notwithstanding section 802, an individual
may not be a qualified individual for any month—
‘‘(1) that begins after the month in which the Commissioner
of Social Security is notified by the Attorney General that
the individual has been removed from the United States pursu-
ant to section 237(a) or 212(a)(6)(A) of the Immigration and
Nationality Act and before the month in which the individual
is lawfully admitted to the United States for permanent resi-
dence;
‘‘(2) during any part of which the individual is fleeing
to avoid prosecution, or custody or confinement after conviction,
under the laws of the United States or the jurisdiction within
the United States from which the person has fled, for a crime,
or an attempt to commit a crime, that is a felony under the
laws of the place from which the individual has fled, or which,
in the case of the State of New Jersey, is a high misdemeanor
under the laws of such State;
‘‘(3) during any part of which the individual violates a
condition of probation or parole imposed under Federal or State
law; or
‘‘(4) during which the individual resides in a foreign country
and is not a citizen or national of the United States if payments
for such month to individuals residing in such country are
withheld by the Treasury Department under section 3329 of
title 31, United States Code.
‘‘(b) REQUIREMENT FOR ATTORNEY GENERAL.—For the purpose
of carrying out subsection (a)(1), the Attorney General shall notify
the Commissioner of Social Security as soon as practicable after
the removal of any individual under section 237(a) or 212(a)(6)(A)
of the Immigration and Nationality Act.
‘‘SEC. 805. BENEFIT AMOUNT.
‘‘The benefit under this title payable to a qualified individual
for any month shall be in an amount equal to 75 percent of the
Federal benefit rate under title XVI for the month, reduced by
the amount of the qualified individual’s benefit income for the
month.
H. R. 3443—25
‘‘SEC. 806. APPLICATIONS AND FURNISHING OF INFORMATION.
‘‘(a) IN GENERAL.—The Commissioner of Social Security shall,
subject to subsection (b), prescribe such requirements with respect
to the filing of applications, the furnishing of information and
other material, and the reporting of events and changes in cir-
cumstances, as may be necessary for the effective and efficient
administration of this title.
‘‘(b) VERIFICATION REQUIREMENT.—The requirements prescribed
by the Commissioner of Social Security under subsection (a) shall
preclude any determination of entitlement to benefits under this
title solely on the basis of declarations by the individual concerning
qualifications or other material facts, and shall provide for
verification of material information from independent or collateral
sources, and the procurement of additional information as necessary
in order to ensure that the benefits are provided only to qualified
individuals (or their representative payees) in correct amounts.
‘‘SEC. 807. REPRESENTATIVE PAYEES.
‘‘(a) IN GENERAL.—If the Commissioner of Social Security deter-
mines that the interest of any qualified individual under this title
would be served thereby, payment of the qualified individual’s ben-
efit under this title may be made, regardless of the legal competency
or incompetency of the qualified individual, either directly to the
qualified individual, or for his or her benefit, to another person
(the meaning of which term, for purposes of this section, includes
an organization) with respect to whom the requirements of sub-
section (b) have been met (in this section referred to as the qualified
individual’s ‘representative payee’). If the Commissioner of Social
Security determines that a representative payee has misused any
benefit paid to the representative payee pursuant to this section,
section 205( j), or section 1631(a)(2), the Commissioner of Social
Security shall promptly revoke the person’s designation as the
qualified individual’s representative payee under this subsection,
and shall make payment to an alternative representative payee
or, if the interest of the qualified individual under this title would
be served thereby, to the qualified individual.
‘‘(b) EXAMINATION OF FITNESS OF PROSPECTIVE REPRESENTATIVE
PAYEE.—
‘‘(1) Any determination under subsection (a) to pay the
benefits of a qualified individual to a representative payee
shall be made on the basis of—
‘‘(A) an investigation by the Commissioner of Social
Security of the person to serve as representative payee,
which shall be conducted in advance of the determination
and shall, to the extent practicable, include a face-to-face
interview with the person (or, in the case of an organiza-
tion, a representative of the organization); and
‘‘(B) adequate evidence that the arrangement is in
the interest of the qualified individual.
‘‘(2) As part of the investigation referred to in paragraph
(1), the Commissioner of Social Security shall—
‘‘(A) require the person being investigated to submit
documented proof of the identity of the person;
‘‘(B) in the case of a person who has a social security
account number issued for purposes of the program under
title II or an employer identification number issued for
H. R. 3443—26
purposes of the Internal Revenue Code of 1986, verify
the number;
‘‘(C) determine whether the person has been convicted
of a violation of section 208, 811, or 1632; and
‘‘(D) determine whether payment of benefits to the
person in the capacity as representative payee has been
revoked or terminated pursuant to this section, section
205( j), or section 1631(a)(2)(A)(iii) by reason of misuse of
funds paid as benefits under this title, title II, or XVI,
respectively.
‘‘(c) REQUIREMENT FOR MAINTAINING LISTS OF UNDESIRABLE
PAYEES.—The Commissioner of Social Security shall establish and
maintain lists which shall be updated periodically and which shall
be in a form that renders such lists available to the servicing
offices of the Social Security Administration. The lists shall consist
of—
‘‘(1) the names and (if issued) social security account num-
bers or employer identification numbers of all persons with
respect to whom, in the capacity of representative payee, the
payment of benefits has been revoked or terminated under
this section, section 205( j), or section 1631(a)(2)(A)(iii) by reason
of misuse of funds paid as benefits under this title, title II,
or XVI, respectively; and
‘‘(2) the names and (if issued) social security account num-
bers or employer identification numbers of all persons who
have been convicted of a violation of section 208, 811, or 1632.
‘‘(d) PERSONS
INELIGIBLE
TO
SERVE
AS
REPRESENTATIVE
PAYEES.—
‘‘(1) IN GENERAL.—The benefits of a qualified individual
may not be paid to any other person pursuant to this section
if—
‘‘(A) the person has been convicted of a violation of
section 208, 811, or 1632;
‘‘(B) except as provided in paragraph (2), payment of
benefits to the person in the capacity of representative
payee has been revoked or terminated under this section,
section 205( j), or section 1631(a)(2)(A)(ii) by reason of
misuse of funds paid as benefits under this title, title
II, or title XVI, respectively; or
‘‘(C) except as provided in paragraph (2)(B), the person
is a creditor of the qualified individual and provides the
qualified individual with goods or services for consideration.
‘‘(2) EXEMPTIONS.—
‘‘(A) The Commissioner of Social Security may prescribe
circumstances under which the Commissioner of Social
Security may grant an exemption from paragraph (1) to
any person on a case-by-case basis if the exemption is
in the best interest of the qualified individual whose bene-
fits would be paid to the person pursuant to this section.
‘‘(B) Paragraph (1)(C) shall not apply with respect to
any person who is a creditor referred to in such paragraph
if the creditor is—
‘‘(i) a relative of the qualified individual and the
relative resides in the same household as the qualified
individual;
‘‘(ii) a legal guardian or legal representative of
the individual;
H. R. 3443—27
‘‘(iii) a facility that is licensed or certified as a
care facility under the law of the political jurisdiction
in which the qualified individual resides;
‘‘(iv) a person who is an administrator, owner,
or employee of a facility referred to in clause (iii),
if the qualified individual resides in the facility, and
the payment to the facility or the person is made
only after the Commissioner of Social Security has
made a good faith effort to locate an alternative rep-
resentative payee to whom payment would serve the
best interests of the qualified individual; or
‘‘(v) a person who is determined by the Commis-
sioner of Social Security, on the basis of written
findings and pursuant to procedures prescribed by the
Commissioner of Social Security, to be acceptable to
serve as a representative payee.
‘‘(C) The procedures referred to in subparagraph (B)(v)
shall require the person who will serve as representative
payee to establish, to the satisfaction of the Commissioner
of Social Security, that—
‘‘(i) the person poses no risk to the qualified indi-
vidual;
‘‘(ii) the financial relationship of the person to the
qualified individual poses no substantial conflict of
interest; and
‘‘(iii) no other more suitable representative payee
can be found.
‘‘(e) DEFERRAL OF PAYMENT PENDING APPOINTMENT OF REP-
RESENTATIVE PAYEE.—
‘‘(1) IN GENERAL.—Subject to paragraph (2), if the Commis-
sioner of Social Security makes a determination described in
the first sentence of subsection (a) with respect to any qualified
individual’s benefit and determines that direct payment of the
benefit to the qualified individual would cause substantial harm
to the qualified individual, the Commissioner of Social Security
may defer (in the case of initial entitlement) or suspend (in
the case of existing entitlement) direct payment of the benefit
to the qualified individual, until such time as the selection
of a representative payee is made pursuant to this section.
‘‘(2) TIME LIMITATION.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), any deferral or suspension of direct payment of a
benefit pursuant to paragraph (1) shall be for a period
of not more than 1 month.
‘‘(B) EXCEPTION
IN
THE
CASE
OF
INCOMPETENCY.—
Subparagraph (A) shall not apply in any case in which
the qualified individual is, as of the date of the Commis-
sioner of Social Security’s determination, legally incom-
petent under the laws of the jurisdiction in which the
individual resides.
‘‘(3) PAYMENT OF RETROACTIVE BENEFITS.—Payment of any
benefits which are deferred or suspended pending the selection
of a representative payee shall be made to the qualified indi-
vidual or the representative payee as a single sum or over
such period of time as the Commissioner of Social Security
determines is in the best interest of the qualified individual.
H. R. 3443—28
‘‘(f ) HEARING.—Any qualified individual who is dissatisfied with
a determination by the Commissioner of Social Security to make
payment of the qualified individual’s benefit to a representative
payee under subsection (a) of this section or with the designation
of a particular person to serve as representative payee shall be
entitled to a hearing by the Commissioner of Social Security to
the same extent as is provided in section 809(a), and to judicial
review of the Commissioner of Social Security’s final decision as
is provided in section 809(b).
‘‘(g) NOTICE REQUIREMENTS.—
‘‘(1) IN GENERAL.—In advance, to the extent practicable,
of the payment of a qualified individual’s benefit to a represent-
ative payee under subsection (a), the Commissioner of Social
Security shall provide written notice of the Commissioner’s
initial determination to so make the payment. The notice shall
be provided to the qualified individual, except that, if the quali-
fied individual is legally incompetent, then the notice shall
be provided solely to the legal guardian or legal representative
of the qualified individual.
‘‘(2) SPECIFIC REQUIREMENTS.—Any notice required by para-
graph (1) shall be clearly written in language that is easily
understandable to the reader, shall identify the person to be
designated as the qualified individual’s representative payee,
and shall explain to the reader the right under subsection
(f ) of the qualified individual or of the qualified individual’s
legal guardian or legal representative—
‘‘(A) to appeal a determination that a representative
payee is necessary for the qualified individual;
‘‘(B) to appeal the designation of a particular person
to serve as the representative payee of the qualified indi-
vidual; and
‘‘(C) to review the evidence upon which the designation
is based and to submit additional evidence.
‘‘(h) ACCOUNTABILITY MONITORING.—
‘‘(1) IN GENERAL.—In any case where payment under this
title is made to a person other than the qualified individual
entitled to the payment, the Commissioner of Social Security
shall establish a system of accountability monitoring under
which the person shall report not less often than annually
with respect to the use of the payments. The Commissioner
of Social Security shall establish and implement statistically
valid procedures for reviewing the reports in order to identify
instances in which persons are not properly using the payments.
‘‘(2) SPECIAL REPORTS.—Notwithstanding paragraph (1), the
Commissioner of Social Security may require a report at any
time from any person receiving payments on behalf of a quali-
fied individual, if the Commissioner of Social Security has
reason to believe that the person receiving the payments is
misusing the payments.
‘‘(3) MAINTAINING LISTS OF PAYEES.—The Commissioner of
Social Security shall maintain lists which shall be updated
periodically of—
‘‘(A) the name, address, and (if issued) the social secu-
rity account number or employer identification number of
each representative payee who is receiving benefit pay-
ments pursuant to this section, section 205( j), or section
1631(a)(2); and
H. R. 3443—29
‘‘(B) the name, address, and social security account
number of each individual for whom each representative
payee is reported to be providing services as representative
payee pursuant to this section, section 205( j), or section
1631(a)(2).
‘‘(4) MAINTAINING LISTS OF AGENCIES.—The Commissioner
of Social Security shall maintain lists, which shall be updated
periodically, of public agencies and community-based nonprofit
social service agencies which are qualified to serve as represent-
ative payees pursuant to this section and which are located
in the jurisdiction in which any qualified individual resides.
‘‘(i) RESTITUTION.—In any case where the negligent failure of
the Commissioner of Social Security to investigate or monitor a
representative payee results in misuse of benefits by the representa-
tive payee, the Commissioner of Social Security shall make payment
to the qualified individual or the individual’s alternative representa-
tive payee of an amount equal to the misused benefits. The Commis-
sioner of Social Security shall make a good faith effort to obtain
restitution from the terminated representative payee.
‘‘SEC. 808. OVERPAYMENTS AND UNDERPAYMENTS.
‘‘(a) IN GENERAL.—Whenever the Commissioner of Social Secu-
rity finds that more or less than the correct amount of payment
has been made to any person under this title, proper adjustment
or recovery shall be made, as follows:
‘‘(1) With respect to payment to a person of more than
the correct amount, the Commissioner of Social Security shall
decrease any payment—
‘‘(A) under this title to which the overpaid person (if
a qualified individual) is entitled, or shall require the over-
paid person or his or her estate to refund the amount
in excess of the correct amount, or, if recovery is not
obtained under these two methods, shall seek or pursue
recovery by means of reduction in tax refunds based on
notice to the Secretary of the Treasury, as authorized under
section 3720A of title 31, United States Code; or
‘‘(B) under title II to recover the amount in excess
of the correct amount, if the person is not currently eligible
for payment under this title.
‘‘(2) With respect to payment of less than the correct
amount to a qualified individual who, at the time the Commis-
sioner of Social Security is prepared to take action with respect
to the underpayment—
‘‘(A) is living, the Commissioner of Social Security shall
make payment to the qualified individual (or the qualified
individual’s representative payee designated under section
807) of the balance of the amount due the underpaid quali-
fied individual; or
‘‘(B) is deceased, the balance of the amount due shall
revert to the general fund of the Treasury.
‘‘(b) NO
EFFECT
ON
TITLE
VIII ELIGIBILITY
OR
BENEFIT
AMOUNT.—In any case in which the Commissioner of Social Security
takes action in accordance with subsection (a)(1)(B) to recover an
amount incorrectly paid to an individual, that individual shall not,
as a result of such action—
‘‘(1) become qualified for benefits under this title; or
H. R. 3443—30
‘‘(2) if such individual is otherwise so qualified, become
qualified for increased benefits under this title.
‘‘(c) WAIVER OF RECOVERY OF OVERPAYMENT.—In any case in
which more than the correct amount of payment has been made,
there shall be no adjustment of payments to, or recovery by the
United States from, any person who is without fault if the Commis-
sioner of Social Security determines that the adjustment or recovery
would defeat the purpose of this title or would be against equity
and good conscience.
‘‘(d) LIMITED IMMUNITY
FOR DISBURSING OFFICERS.—A dis-
bursing officer may not be held liable for any amount paid by
the officer if the adjustment or recovery of the amount is waived
under subsection (b), or adjustment under subsection (a) is not
completed before the death of the qualified individual against whose
benefits deductions are authorized.
‘‘(e) AUTHORIZED COLLECTION PRACTICES.—
‘‘(1) IN GENERAL.—With respect to any delinquent amount,
the Commissioner of Social Security may use the collection
practices described in sections 3711(e), 3716, and 3718 of title
31, United States Code, as in effect on October 1, 1994.
‘‘(2) DEFINITION.—For purposes of paragraph (1), the term
‘delinquent amount’ means an amount—
‘‘(A) in excess of the correct amount of the payment
under this title; and
‘‘(B) determined by the Commissioner of Social Security
to be otherwise unrecoverable under this section from a
person who is not a qualified individual under this title.
‘‘SEC. 809. HEARINGS AND REVIEW.
‘‘(a) HEARINGS.—
‘‘(1) IN
GENERAL.—The Commissioner of Social Security
shall make findings of fact and decisions as to the rights of
any individual applying for payment under this title. The
Commissioner of Social Security shall provide reasonable notice
and opportunity for a hearing to any individual who is or
claims to be a qualified individual and is in disagreement
with any determination under this title with respect to entitle-
ment to, or the amount of, benefits under this title, if the
individual requests a hearing on the matter in disagreement
within 60 days after notice of the determination is received,
and, if a hearing is held, shall, on the basis of evidence adduced
at the hearing affirm, modify, or reverse the Commissioner
of Social Security’s findings of fact and the decision. The
Commissioner of Social Security may, on the Commissioner
of Social Security’s own motion, hold such hearings and conduct
such investigations and other proceedings as the Commissioner
of Social Security deems necessary or proper for the administra-
tion of this title. In the course of any hearing, investigation,
or other proceeding, the Commissioner may administer oaths
and affirmations, examine witnesses, and receive evidence. Evi-
dence may be received at any hearing before the Commissioner
of Social Security even though inadmissible under the rules
of evidence applicable to court procedure. The Commissioner
of Social Security shall specifically take into account any phys-
ical, mental, educational, or linguistic limitation of the indi-
vidual (including any lack of facility with the English language)
in determining, with respect to the entitlement of the individual
H. R. 3443—31
for benefits under this title, whether the individual acted in
good faith or was at fault, and in determining fraud, deception,
or intent.
‘‘(2) EFFECT
OF
FAILURE
TO
TIMELY
REQUEST
REVIEW.—
A failure to timely request review of an initial adverse deter-
mination with respect to an application for any payment under
this title or an adverse determination on reconsideration of
such an initial determination shall not serve as a basis for
denial of a subsequent application for any payment under this
title if the applicant demonstrates that the applicant failed
to so request such a review acting in good faith reliance upon
incorrect, incomplete, or misleading information, relating to
the consequences of reapplying for payments in lieu of seeking
review of an adverse determination, provided by any officer
or employee of the Social Security Administration.
‘‘(3) NOTICE REQUIREMENTS.—In any notice of an adverse
determination with respect to which a review may be requested
under paragraph (1), the Commissioner of Social Security shall
describe in clear and specific language the effect on possible
entitlement to benefits under this title of choosing to reapply
in lieu of requesting review of the determination.
‘‘(b) JUDICIAL REVIEW.—The final determination of the Commis-
sioner of Social Security after a hearing under subsection (a)(1)
shall be subject to judicial review as provided in section 205(g)
to the same extent as the Commissioner of Social Security’s final
determinations under section 205.
‘‘SEC. 810. OTHER ADMINISTRATIVE PROVISIONS.
‘‘(a) REGULATIONS AND ADMINISTRATIVE ARRANGEMENTS.—The
Commissioner of Social Security may prescribe such regulations,
and make such administrative and other arrangements, as may
be necessary or appropriate to carry out this title.
‘‘(b) PAYMENT
OF BENEFITS.—Benefits under this title shall
be paid at such time or times and in such installments as the
Commissioner of Social Security determines are in the interests
of economy and efficiency.
‘‘(c) ENTITLEMENT REDETERMINATIONS.—An individual’s entitle-
ment to benefits under this title, and the amount of the benefits,
may be redetermined at such time or times as the Commissioner
of Social Security determines to be appropriate.
‘‘(d) SUSPENSION AND TERMINATION OF BENEFITS.—Regulations
prescribed by the Commissioner of Social Security under subsection
(a) may provide for the suspension and termination of entitlement
to benefits under this title as the Commissioner determines is
appropriate.
‘‘SEC. 811. PENALTIES FOR FRAUD.
‘‘(a) IN GENERAL.—Whoever—
‘‘(1) knowingly and willfully makes or causes to be made
any false statement or representation of a material fact in
an application for benefits under this title;
‘‘(2) at any time knowingly and willfully makes or causes
to be made any false statement or representation of a material
fact for use in determining any right to the benefits;
‘‘(3) having knowledge of the occurrence of any event
affecting—
‘‘(A) his or her initial or continued right to the benefits;
or
H. R. 3443—32
‘‘(B) the initial or continued right to the benefits of
any other individual in whose behalf he or she has applied
for or is receiving the benefit,
conceals or fails to disclose the event with an intent fraudu-
lently to secure the benefit either in a greater amount or
quantity than is due or when no such benefit is authorized;
or
‘‘(4) having made application to receive any such benefit
for the use and benefit of another and having received it,
knowingly and willfully converts the benefit or any part thereof
to a use other than for the use and benefit of the other indi-
vidual,
shall be fined under title 18, United States Code, imprisoned not
more than 5 years, or both.
‘‘(b) RESTITUTION BY REPRESENTATIVE PAYEE.—If a person or
organization violates subsection (a) in the person’s or organization’s
role as, or in applying to become, a representative payee under
section 807 on behalf of a qualified individual, and the violation
includes a willful misuse of funds by the person or entity, the
court may also require that full or partial restitution of funds
be made to the qualified individual.
‘‘SEC. 812. DEFINITIONS.
‘‘In this title:
‘‘(1) WORLD
WAR
II
VETERAN.—The term ‘World War II
veteran’ means a person who—
‘‘(A) served during World War II—
‘‘(i) in the active military, naval, or air service
of the United States during World War II; or
‘‘(ii) in the organized military forces of the Govern-
ment of the Commonwealth of the Philippines, while
the forces were in the service of the Armed Forces
of the United States pursuant to the military order
of the President dated July 26, 1941, including among
the military forces organized guerrilla forces under
commanders appointed, designated, or subsequently
recognized by the Commander in Chief, Southwest
Pacific Area, or other competent authority in the Army
of the United States, in any case in which the service
was rendered before December 31, 1946; and
‘‘(B) was discharged or released therefrom under condi-
tions other than dishonorable—
‘‘(i) after service of 90 days or more; or
‘‘(ii) because of a disability or injury incurred or
aggravated in the line of active duty.
‘‘(2) WORLD WAR II.—The term ‘World War II’ means the
period beginning on September 16, 1940, and ending on July
24, 1947.
‘‘(3) SUPPLEMENTAL SECURITY INCOME BENEFIT UNDER TITLE
XVI.—The term ‘supplemental security income benefit under
title XVI’, except as otherwise provided, includes State supple-
mentary payments which are paid by the Commissioner of
Social Security pursuant to an agreement under section 1616(a)
of this Act or section 212(b) of Public Law 93–66.
‘‘(4) FEDERAL BENEFIT RATE UNDER TITLE XVI.—The term
‘Federal benefit rate under title XVI’ means, with respect to
any month, the amount of the supplemental security income