[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 693 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 693

 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 SENATE OF THE UNITED STATES

                             April 4, 2001

 Mr. Grassley (for himself, Mr. Breaux, and Mr. Burns) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 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. SHORT TITLE.

    This Act may be cited as the ``Social Security Beneficiaries 
Protection Act''.

SEC. 2. 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 that is an organization (regardless of whether it is a `qualified 
organization' within the meaning of paragraph (4)(B)) 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 
that is an organization (regardless of whether it is a `qualified 
organization' within the meaning of subparagraph (D)(ii)) 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 of Social Security makes a 
determination of misuse after the date of enactment of this Act.

SEC. 3. 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 enactment of this Act.

SEC. 4. FEE FORFEITURE IN CASE OF BENEFIT MISUSE BY QUALIFIED 
              ORGANIZATIONAL REPRESENTATIVE PAYEES.

    (a) OASDI Amendment.--Section 205(j)(4)(A) of the Social Security 
Act (42 U.S.C. 405(j)(4)(A)) is amended--
            (1) in clause (i), by striking ``A qualified organization'' 
        and inserting ``Except as provided in clause (iii), a qualified 
        organization''; and
            (2) by adding at the end the following new clause:
    ``(iii) 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 has misused all or part of the individual's 
benefit, and any amount 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) of such Act (42 U.S.C. 
1383(a)(2)(D)) is amended--
            (1) in clause (i), by striking ``A qualified organization'' 
        and inserting ``Except as provided in clause (v), a qualified 
        organization''; and
            (2) by adding at the end the following new clause:
    ``(v) 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 has misused all or part of the individual's 
benefit, and any amount 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 of Social Security 
makes a determination of misuse after the date of enactment of this 
Act.

SEC. 5. LIABILITY OF NONGOVERNMENTAL 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 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) shall 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. 
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) shall 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 of Social Security makes a 
determination of misuse after the date of enactment of this Act.

SEC. 6. EXTENSION OF THE CIVIL MONETARY PENALTY
              AUTHORITY.

    (a) In General.--Section 1129(a) of the Social Security Act (42 
U.S.C. 1320a-8(a)) is amended--
            (1) by striking ``(A)'' and ``(B)'' and inserting ``(i)'' 
        and ``(ii)'', respectively;
            (2) by striking ``(a)(1)'' and inserting ``(a)(1)(A)'';
            (3) by striking ``(2)'' and inserting ``(B)''; and
            (4) by adding at the end the following new paragraph:
            ``(2) Any person (including an organization, agency, or 
        other entity (other than a State or local government agency)) 
        who having received, while acting in the capacity as 
        representative payee pursuant to section 205(j) or section 
        1631(a)(2), a payment under title II or title XVI for the use 
        and benefit of another individual, converts such payment, or 
        any part thereof, to a use that such person knows or should 
        know is other than for the use and benefit of such other 
        individual, shall be subject to, in addition to any other 
        penalties that may be prescribed by law, a civil money penalty 
        of not more than $5,000 for each such violation.''.
    (b) Conforming Amendments.--
            (1) Section 1129(b)(3)(A) of such Act (42 U.S.C. 1320a-
        8(b)(3)(A)) is amended by striking ``charging fraud or false 
        statements''.
            (2) Section 1129(c)(1) of such Act (42 U.S.C. 1320a-
        8(c)(1)) is amended by striking ``and representations'' and 
        inserting ``, representations, or actions''.
            (3) Section 1129(e)(1)(A) of such Act (42 U.S.C. 1320a-
        8(e)(1)(A)) is amended by striking ``statement or 
        representation referred to in subsection (a) was made'' and 
        inserting ``violation occurred''.
    (c) Effective Date.--The amendments made by this section shall be 
effective with respect to violations committed after the date of 
enactment of this Act.
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