[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 868 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 868

To amend the Social Security Act to prohibit persons from charging for 
   services or products that the Social Security Administration and 
    Department of Health and Human Services provide without charge.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 10, 1997

 Mr. Harkin (for himself, Mr. Hutchinson, Mr. Reid, Mr. Bryan, and Mr. 
 Rockefeller) introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Social Security Act to prohibit persons from charging for 
   services or products that the Social Security Administration and 
    Department of Health and Human Services provide without charge.

    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 ``Social Security Consumer Protection 
Act''.

SEC. 2. PROHIBITION OF CHARGING FOR SERVICES OR PRODUCTS THAT ARE 
              PROVIDED WITHOUT CHARGE BY THE SOCIAL SECURITY 
              ADMINISTRATION OR THE DEPARTMENT OF HEALTH AND HUMAN 
              SERVICES.

    Part A of title XI of the Social Security Act (42 U.S.C. 1301 et 
seq.) is amended by inserting after section 1140 the following:

``SEC. 1140A. PROHIBITION OF CHARGING FOR SERVICES OR PRODUCTS THAT ARE 
              PROVIDED WITHOUT CHARGE BY THE SOCIAL SECURITY 
              ADMINISTRATION OR THE DEPARTMENT OF HEALTH AND HUMAN 
              SERVICES.

    ``(a) In General.--Except as provided in subsection (b), a person 
shall not offer, for a fee, to assist an individual to obtain a product 
or service that the person knows or should know is provided for no fee 
by the Social Security Administration or the Department of Health and 
Human Services.
    ``(b) Exception.--A person may offer assistance for a fee if, at 
the time the offer is made, the person provides, to the individual 
receiving the assistance, a written notice that clearly and prominently 
contains the following phrase: `IMPORTANT PUBLIC DISCLOSURE: The 
product or service described here and assistance to obtain the product 
or service is available free of charge from the Social Security 
Administration or the Department of Health and Human Services.'.
    ``(c) Imposition of Penalty.--
            ``(1) In general.--The Commissioner or the Secretary (as 
        applicable), pursuant to regulations, may impose a civil money 
        penalty against a person for a violation of subsection (a) not 
        to exceed--
                    ``(A) except as provided in subparagraph (B), 
                $5,000; or
                    ``(B) in the case of a violation consisting of a 
                broadcast or telecast, $25,000.
            ``(2) Violations with respect to individual items.--In the 
        case of an offer of services consisting of pieces of mail, each 
        piece of mail in violation of this section shall be a separate 
        violation.
    ``(d) Recovery of Penalty.--
            ``(1) Procedure.--The provisions of section 1128A (other 
        than subsections (a), (b), (f), (h), (i) (other than paragraph 
        (7)), and (m) and the first sentence of subsection (c)) shall 
        apply to civil money penalties imposed under subsection (c) in 
        the same manner as the provisions apply to a penalty or 
        proceeding under section 1128A(a).
            ``(2) Compromise.--Penalties imposed against a person under 
        subsection (c) may be compromised by the Commissioner or the 
        Secretary (as applicable).
            ``(3) Venue.--Penalties imposed against a person under 
        subsection (c) may be recovered in a civil action in the name 
        of the United States brought in the district court of the 
        United States for the district in which the violation occurred 
        or where the person resides, has its principal office, or may 
        be found as determined by the Commissioner or the Secretary (as 
        applicable).
            ``(4) Deduction of penalty from benefits.--The amount of a 
        penalty imposed under this section may be deducted from any sum 
        then or later owing by the United States to the person against 
        whom the penalty has been imposed.
    ``(e) Use of Penalty Amounts Recovered.--
            ``(1) Costs of the office of the inspector general.--
        Amounts recovered under this section shall be made available to 
        the Commissioner and the Secretary (as applicable) to reimburse 
        costs of the applicable Office of the Inspector General related 
        to the enforcement of this section.
            ``(2) Excess amounts.--Amounts recovered under this 
        section, in excess of the amounts needed to reimburse the 
        Commissioner and the Secretary under paragraph (1), shall be 
        deposited as miscellaneous receipts of the Treasury of the 
        United States.
    ``(f) Enforcement.--The provisions of this section may be enforced 
through the Office of the Inspector General of the Social Security 
Administration or the Office of the Inspector General of the Department 
of Health and Human Services (as appropriate).''.
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