Beat Bad Bureaucrats Act

Bill: 119-hr-886
Sponsor: full_name: Rep. Rulli, Michael A. [R-OH-6]
Introduced: 2025-01-31
Policy area: Commerce
Latest action: action_date: 2025-01-31
text: Referred to the House Committee on the Judiciary.

Summaries:
action_date: 2025-01-31
action_desc: Introduced in House
text: <p><strong>Beat Bad Bureaucrats Act</strong></p><p>This bill prohibits the Small Business Administration (SBA) from garnishing Social Security payments to victims of identity theft on account of certain delinquent SBA loans obtained fraudulently during the COVID-19 pandemic.&nbsp;</p><p>Specifically, the SBA may not garnish an individual’s Social Security payments related to a covered loan if (1) the individual’s name was used to fraudulently obtain the loan, and (2) the individual has reported the identity theft to the SBA. Under the bill, <em>covered loans</em> are Disaster Loans granted in response to COVID-19 between January 31, 2020, and December 31, 2021&nbsp;(e.g.,&nbsp;Economic Injury Disaster Loans) and loans granted under the Paycheck Protection Program. The prohibition on garnishment does not apply if the SBA determines that an individual is not a victim of identity theft.&nbsp;</p><p>Further, the SBA must post instructions on how to report identity theft on its public&nbsp;website and include them in the written notice provided to delinquent borrowers before garnishing their pay.&nbsp;</p>

tv_txt: I 119th CONGRESS 1st Session H. R. 886 IN THE HOUSE OF REPRESENTATIVES January 31, 2025 Mr. Rulli (for himself, Mr. Graves , and Mr. Webster of Florida ) introduced the following bill; which was referred to the Committee on the Judiciary A BILL To prohibit the Administrator of the Small Business Administration from garnishing social security benefits with respect to certain named individuals of covered loans who are victims of identity theft, and for other purposes.

1. Short title This Act may be cited as the Beat Bad Bureaucrats Act . 2. Protection of Social Security benefits from garnishment in certain cases of identity theft (a) In general Notwithstanding section 3716(c)(3)(A)(i) of title 31, United States Code, the Administrator may not, with respect to a covered loan, garnish payments made to the named individual of such covered loan under section 202 of the Social Security Act ( 42 U.S.C. 402 et seq. ) for the purposes of repayment of such covered loan. (b) Exception Subsection (a) does not apply if the Administrator determines that the named individual is not a victim of identity theft. (c) Revision of rule Not later than 30 days after the date of the enactment of this Act, the Administrator shall revise section 140.11(e)(1) of title 13, Code of Federal Regulations, to add to the list of notice requirements in such section information about how to report identity theft to the Administrator. (d) Definitions In this section: (1) Administrator The term Administrator means the Administrator of the Small Business Administration. (2) Covered loan The term covered loan means— (A) a loan made under paragraph (36) or (37) of section 7(a) of the Small Business Act ( 15 U.S.C. 636(a) ); or (B) a loan made under section 7(b) of such Act ( 15 U.S.C. 636(b) ) in response to COVID–19 during the covered period (as defined in section 1110(a) of the CARES Act ( 15 U.S.C. 9009 ). (3) Named individual The term named individual means an individual— (A) under whose name a covered loan was fraudulently made; and (B) that has notified the Administrator, using the procedure posted on a public website of the Small Business Administration, that such individual is a victim of identity theft with respect to such covered loan.