[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4651 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 4651

 To amend the Social Security Act to provide additional safeguards for 
beneficiaries with representative payees under the old-age, survivors, 
 and disability insurance program or the supplemental security income 
                                program.


_______________________________________________________________________


                    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 safeguards 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 Representatives 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 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 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 beneficiary'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 paragraph (6)(B).''.
    (b) SSI Amendment.--Section 1631(a)(2)(E) of such Act (42 U.S.C. 
1383(a)(2)(E)) is amended by inserting 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 subparagraph (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 Commissioner 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 APPLICABLE TO 
              NONGOVERNMENTAL ORGANIZATIONAL 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 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); and''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the first day of the thirteenth 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 individual'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 individual'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 misuse by a representative payee 
in any case with respect to which the Commissioner makes the 
determination of misuse after December 31, 1999.

SEC. 4. LIABILITY OF REPRESENTATIVE PAYEES FOR MISUSED BENEFITS.

    (a) OASDI Amendment.--Section 205(j) of the Social Security Act (42 
U.S.C. 405(j)) is amended by redesignating paragraphs (6) and (7) as 
paragraphs (7) and (8), respectively, and inserting after paragraph (5) 
the following new paragraph:
    ``(6)(A) If the Commissioner of Social Security or a court of 
competent jurisdiction determines that a representative 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 subsection, the representative payee shall be liable for the 
amount misused, and such amount (to the extent not repaid by the 
representative payee) shall be treated as an overpayment of benefits 
under this title to the representative 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 individual or the individual's alternative 
representative payee.
    ``(B) The total of the amount certified to such individual 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 
subparagraph (E) the following new subparagraph:
    ``(F)(i) If the Commissioner of Social Security or a court of 
competent jurisdiction determines that a representative 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 repaid by the 
representative payee) shall be treated as an overpayment of benefits 
under this title to the representative 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 representative payee in any case with 
respect to which the Commissioner makes the determination of misuse 
after December 31, 1999.
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