II 110th CONGRESS 2d Session S. 2850 IN THE SENATE OF THE UNITED STATES April 14, 2008 Mr. Kohl (for himself and Mrs. McCaskill) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To prohibit the use of funds to promote the direct deposit of Social Security benefits until adequate safeguards are established to prevent the attachment and garnishment of such benefits.

1.

Short title

This Act may be cited as the Illegal Garnishment Prevention Act.

2.

Prohibition on use of funds to promote direct deposit of social security benefits until assurance of protection from attachment or garnishment

(a)

Findings

Congress makes the following findings: (1)Section 207 of the Social Security Act (42 U.S.C. 407) provides that Social Security benefits shall not “be subject to execution, levy, attachment, garnishment, or other legal process, or to the operation of any bankruptcy or insolvency law.”. (2)Congress intended for Social Security benefits to provide at least a minimum subsistence for our nation's elderly and disabled. (3)Social Security benefits are the only source of income for over 20 percent of Social Security recipients. (4)Many financial institutions are garnishing accounts on behalf of creditors in order to recover debt owed to them, and are assessing fees on bank accounts into which Social Security benefits are electronically deposited. (5)Many recipients of these benefits are left temporarily destitute when financial institutions freeze access to their only source of income. (6)Despite the lack of protections for direct deposit recipients of Social Security, the Treasury is spending millions of dollars encouraging seniors and other recipients of social security benefits to use direct deposit for receipt of their benefits. (b)

Prohibition

No funds appropriated or otherwise made available to the Secretary of the Treasury or the Commissioner of Social Security for fiscal year 2009 may be used to promote or otherwise encourage recipients of old-age, survivors, or disability insurance benefits paid under title II of the Social Security Act to use direct deposit for payment of such benefits, or to otherwise promote the use of direct deposit for such benefits until the Secretary of the Treasury promulgates rules establishing procedures to ensure that such benefits are protected from attachment and garnishment in accordance with the requirements of section 207 of the Social Security Act (42 U.S.C. 407), and at least 5 of the 7 members of the advisory committee established under subsection (c) concur in advising the Secretary of the Treasury that such procedures provide adequate safeguards. (c)

Advisory Committee

(1)

Establishment

There is hereby established an Advisory Committee to be known as the Social Security Benefits Protection from Attachment or Garnishment Advisory Committee. (2)

Membership

The Committee shall be comprised of 7 members comprised of, or appointed by the following: (A)The Secretary of the Treasury. (B)The Chair of the Committee on Ways and Means of the House of Representatives. (C)The Ranking Member of the Committee on Ways and Means of the House of Representatives. (D)The Chair of the Committee on Finance of the Senate. (E)The Ranking Member of the Committee on Finance of the Senate. (F)The Chair of the Special Committee on Aging of the Senate. (G)The Ranking Member of the Special Committee on Aging of the Senate. (3)

Meetings

The Secretary of the Treasury shall establish meetings of the Committee. (4)

Duties

The Committee shall review the procedures promulgated by the Secretary of the Treasury to carry out subsection (b) and, upon the concurrence of at least 5 members of the Committee, advise the Secretary of the Treasury as to the adequacy of such procedures with respect to protecting old-age, survivors, or disability insurance benefits paid under title II of the Social Security Act from attachment and garnishment. (5)

FACA exemption

The Committee shall not be subject to the Federal Advisory Committee Act (5 U.S.C. App.).