[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1740 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                S. 1740

 To better protect consumers when private companies offer services or 
   products that are provided free of charge by the Social Security 
    Administration and the Department of Health and Human Services.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 15, 1999

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

_______________________________________________________________________

                                 A BILL


 
 To better protect consumers when private companies offer services or 
   products that are provided free of charge by the Social Security 
    Administration and the Department of Health and Human Services.

    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 AND PROHIBITION OF SALE, TRANSFER, OR USE OF 
              CERTAIN INFORMATION.

    (a) In General.--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 AND PROHIBITION OF SALE, TRANSFER, OR USE OF 
              CERTAIN INFORMATION.

    ``(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 on the first page of the 
offer that clearly and prominently contains the following phrase 
(printed in bold 16 point type): `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. You may 
wish to check the government section of your local phone book for the 
phone number of your local Social Security Administration or Department 
of Health and Human Services office for help in obtaining this service 
for no charge or you may choose to use our service for a fee.'.
    ``(c) Sale, Transfer, or Use of Information.--
            ``(1) In general.--Except with prior, express, written 
        authorization from an individual, a person obtaining any 
        information regarding such individual in connection with an 
        offer of assistance under subsection (b) shall not--
                    ``(A) sell or transfer such information; or
                    ``(B) use such information for a purpose other than 
                providing such assistance.
            ``(2) Required form of authorization.--An authorization 
        under paragraph (1) shall be presented to the individual as a 
        separate document, clearly explaining the purpose and effect of 
        the authorization and the offer under subsection (a) shall not 
        be contingent on such authorization.
    ``(d) Imposition of Penalty.--
            ``(1) In general.--The Commissioner or the Secretary (as 
        applicable), pursuant to regulations, may impose a civil 
        monetary penalty against a person for a violation of subsection 
        (a) or (c) 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.--
                    ``(A) Offer of services.--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.
                    ``(B) Use of information.--In the case of a 
                violation of subsection (c), each sale, transfer, or 
                use of information with respect to an individual shall 
                be a separate violation.
    ``(e) 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 (d) 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 (d) may be compromised by the Commissioner or the 
        Secretary (as applicable).
            ``(3) Venue.--Penalties imposed against a person under 
        subsection (d) 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.
    ``(f) 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.
    ``(g) 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).''.
    (b) Conforming Amendment.--The table of sections for part A of 
title XI of the Social Security Act is amended by inserting after the 
item relating to 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 and prohibition 
                                        of sale, transfer, or use of 
                                        certain information.''.
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