[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4547 Enrolled Bill (ENR)]

        H.R.4547

                     One Hundred Fifteenth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

         Begun and held at the City of Washington on Wednesday,
           the third day of January, two thousand and eighteen


                                 An Act


 
To amend titles II, VIII, and XVI of the Social Security Act to improve 
           and strengthen the representative payment 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 ``Strengthening Protections for Social 
Security Beneficiaries Act of 2018''.
SEC. 2. TABLE OF CONTENTS.
    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

       TITLE I--STRENGTHENING OVERSIGHT AND BENEFICIARY PROTECTION

Sec. 101. Stronger monitoring of representative payees.
Sec. 102. Reducing the burden on families.
Sec. 103. Protecting beneficiaries through information sharing.
Sec. 104. Clarifying overpayment liability for child in child welfare 
          system.
Sec. 105. Reports.

             TITLE II--IMPROVING PAYEE SELECTION AND QUALITY

Sec. 201. Advance designation of representative payees.
Sec. 202. Prohibition on individuals convicted of certain crimes serving 
          as representative payees.
Sec. 203. Prohibition on individuals with representative payees serving 
          as representative payees.
Sec. 204. Reassessment of payee selection and replacement policies.

      TITLE I--STRENGTHENING OVERSIGHT AND BENEFICIARY PROTECTION

    SEC. 101. STRONGER MONITORING OF REPRESENTATIVE PAYEES.
    (a) Protection and Advocacy for Beneficiaries With Representative 
Payees.--Section 205(j)(6) of the Social Security Act (42 U.S.C. 
405(j)(6)) is amended by adding at the end the following:
    ``(C)(i) The Commissioner of Social Security shall make annual 
grants directly to the protection and advocacy system serving each of 
the States and the American Indian consortium for the purpose of 
conducting reviews of representative payees in accordance with this 
subparagraph. The total amount used by the Commissioner for such grants 
each year--
        ``(I) shall be an amount sufficient, as determined by the 
    Commissioner in consultation with each of the protection and 
    advocacy systems, to carry out all of the activities described in 
    clause (ii); and
        ``(II) shall not be less than $25,000,000.
    ``(ii) A protection and advocacy system awarded a grant under this 
subparagraph shall use the grant funds to--
        ``(I) conduct all periodic onsite reviews pursuant to this 
    paragraph and such other reviews of representative payees as the 
    Commissioner may request, including reviews conducted in response 
    to allegations or concerns about the performance or suitability of 
    the payee;
        ``(II) conduct additional reviews that the protection and 
    advocacy system has reason to believe are warranted;
        ``(III) develop corrective action plans to assist 
    representative payees in conforming to requirements specified by 
    the Commissioner;
        ``(IV) submit a report to the Commissioner on each completed 
    review containing such information as the Commissioner shall 
    require; and
        ``(V) conduct an initial onsite assessment of any organization 
    that begins collecting a fee for its services as a representative 
    payee to ensure that such organization is established as such a 
    representative payee in accordance with requirements specified by 
    the Commissioner.
A protection and advocacy system may refer beneficiaries to other 
programs or services as the protection and advocacy system considers 
appropriate.
    ``(iii) To be eligible to receive grants under this section, a 
protection and advocacy system shall submit an initial application to 
the Commissioner at such time, in such form and manner, and accompanied 
by such information and assurances as the Commissioner may require.
    ``(iv)(I) Subject to subclause (II), the Commissioner shall ensure 
that any funds used for grants under clause (i) shall be allocated to 
the protection and advocacy systems serving each of the States and the 
American Indian consortium in a manner such that the amount provided to 
each protection and advocacy system bears the same ratio to the total 
of such funds as the number of represented beneficiaries in the State 
or American Indian consortium in which such protection and advocacy 
system is located bears to the total number of represented 
beneficiaries.
    ``(II) The amount of an annual grant to a protection and advocacy 
system under clause (i) shall--
        ``(aa) in the case of a protection and advocacy system serving 
    American Samoa, Guam, the United States Virgin Islands, or the 
    Commonwealth of the Northern Mariana Islands, or the American 
    Indian consortium, not be less than $30,000; and
        ``(bb) in the case of a protection and advocacy system serving 
    any other State, not be less than $60,000.
    ``(III) Funds provided to a protection and advocacy system through 
a grant under clause (i) for a 1-year period shall remain available 
through the end of the following 1-year period.
    ``(IV) For purposes of this clause, the term `represented 
beneficiary' means an individual--
        ``(aa) who is entitled to benefits under this title, title 
    VIII, or title XVI; and
        ``(bb) whose benefits have been certified for payment to a 
    representative payee.
    ``(v)(I) The Commissioner shall make annual grants, in an amount 
equal to 4 percent of the total amount of grants awarded each year 
under clause (i), to an eligible national association for the provision 
of training and technical assistance, administrative support, and data 
collection services to protection and advocacy systems in connection 
with grants awarded under clause (i).
    ``(II) In this clause, the term `eligible national association' 
means a national disability association with extensive knowledge and 
demonstrated experience in providing training, technical assistance, 
and administrative oversight to protection and advocacy systems that 
monitor representative payees.
    ``(vi) In conducting reviews under this section, a protection and 
advocacy system shall have the same authorities, including access to 
records, facilities, and persons, as such system would have for 
purposes of providing services under subtitle C of title I of the 
Developmental Disabilities Assistance and Bill of Rights Act of 2000 
(42 U.S.C. 15041 et seq.).
    ``(vii) Whenever benefit amounts under this title are increased by 
any percentage effective with any month after November 2018 as a result 
of a determination made under section 215(i), each of the dollar 
amounts specified in clauses (i)(II) and (iv)(II) shall be increased by 
the same percentage.
    ``(viii) No additional funds are authorized to be appropriated to 
carry out the requirements of this subparagraph. Such requirements 
shall be carried out using amounts otherwise authorized.
    ``(ix) In this subparagraph:
        ``(I) The term `American Indian consortium' means a consortium 
    established under subtitle C of title I of the Developmental 
    Disabilities Assistance and Bill of Rights Act of 2000 (42 U.S.C. 
    15041 et seq.).
        ``(II) The term `protection and advocacy system' means a 
    protection and advocacy system established under subtitle C of 
    title I of the Developmental Disabilities Assistance and Bill of 
    Rights Act of 2000 (42 U.S.C. 15041 et seq.).
        ``(III) The term `State' means the several States of the United 
    States, the District of Columbia, the Commonwealth of Puerto Rico, 
    the United States Virgin Islands, Guam, American Samoa, and the 
    Commonwealth of the Northern Mariana Islands.''.
    (b) Expansion of Periodic Onsite Review Requirements.--Section 
205(j)(6)(A) of the Social Security Act (42 U.S.C. 405(j)(6)(A)) is 
amended--
        (1) in clause (ii), by striking ``or'';
        (2) in clause (iii), by striking the period and inserting ``; 
    or'';
        (3) by adding after clause (iii) the following:
        ``(iv) the representative payee collects a fee for its 
    services.''; and
        (4) by adding after clause (iv) (as added by paragraph (3)) the 
    following flush text:
``The Commissioner shall also conduct periodic onsite reviews of 
individual and organizational payees, including payees who are related 
to the beneficiary and primarily reside in the same household, selected 
on the basis of risk-factors for potential misuse or unsuitability 
associated with such payees or beneficiaries.''.
    (c) Availability of Grant Funds.--
        (1) Protection and advocacy system grants.--Grants described 
    under clause (i) of subparagraph (C) of section 205(j)(6) of the 
    Social Security Act (as added by subsection (a)) shall be awarded 
    on August 1, 2018, and annually thereafter, and funds provided by 
    such grants to a protection and advocacy system may be used to 
    reimburse the protection and advocacy system for amounts expended 
    by the protection and advocacy system during the period beginning 
    on May 1, 2018, and ending on such date for hiring and start-up 
    costs in preparation to carry out reviews of representative payees 
    in accordance with such subparagraph.
        (2) National association grants.--Grants described under clause 
    (v) of such subparagraph shall be awarded on May 1, 2018, and 
    annually thereafter.
    SEC. 102. REDUCING THE BURDEN ON FAMILIES.
    (a) Title II.--Section 205(j)(3) of the Social Security Act (42 
U.S.C. 405(j)(3)) is amended--
        (1) by redesignating subparagraphs (D) through (G) as 
    subparagraphs (E) through (H), respectively;
        (2) by inserting after subparagraph (C) the following:
            ``(D)(i) Subparagraph (A) shall not apply in any case where 
        the other person to whom such payment is made is--

                    ``(I) a parent, or other individual who is a legal 
                guardian of, a minor child entitled to such payment who 
                primarily resides in the same household;
                    ``(II) a parent of an individual entitled to such 
                payment who is under a disability (as defined in 
                section 223(d)) who primarily resides in the same 
                household; or
                    ``(III) the spouse of the individual entitled to 
                such payment.

            ``(ii) The Commissioner of Social Security shall establish 
        and implement procedures as necessary for the Commissioner to 
        determine the eligibility of such parties for the exemption 
        provided in clause (i). The Commissioner shall prescribe such 
        regulations as may be necessary to determine eligibility for 
        such exemption.'';
        (3) in subparagaph (E) (as so redesignated), by striking ``and 
    (C)'' and inserting ``(C), and (D)''; and
        (4) in subparagraph (F) (as so redesignated), by striking 
    ``(D)'' each place it appears and inserting ``(E)''.
    (b) Title VIII.--Section 807(h) of the Social Security Act (42 
U.S.C. 1007(h)) is amended--
        (1) by redesignating paragraphs (3) through (5) as paragraphs 
    (4) through (6), respectively; and
        (2) by inserting after paragraph (2) the following:
        ``(3)(A) Paragraph (1) shall not apply in any case where the 
    other person to whom such payment is made is the spouse of the 
    individual entitled to such payment.
        ``(B) The Commissioner of Social Security shall establish and 
    implement procedures as necessary for the Commissioner to determine 
    the eligibility of such parties for the exemption provided in 
    subparagraph (A). The Commissioner shall prescribe such regulations 
    as may be necessary to determine eligibility for such exemption.''.
    (c) Title XVI.--Section 1631(a)(2)(C) of the Social Security Act 
(42 U.S.C. 1383(a)(2)(C)) is amended--
        (1) by redesignating clauses (iv) and (v) as clauses (v) and 
    (vi), respectively;
        (2) by inserting after clause (iii) the following:
        ``(iv)(I) Clause (i) shall not apply in any case where the 
    representative payee is--
            ``(aa) a parent, or other individual who is a legal 
        guardian of, a minor child entitled to such payment who 
        primarily resides in the same household;
            ``(bb) a parent of an individual entitled to such payment 
        who is under a disability who primarily resides in the same 
        household; or
            ``(cc) the spouse of the individual entitled to such 
        payment.
        ``(II) The Commissioner of Social Security shall establish and 
    implement procedures as necessary for the Commissioner to determine 
    the eligibility of such parties for the exemption provided in 
    subclause (I). The Commissioner shall prescribe such regulations as 
    may be necessary to determine eligibility for such exemption.'';
        (3) in clause (v) (as so redesignated), by striking ``and 
    (iii)'' and inserting ``(iii), and (iv)''; and
        (4) in clause (vi) (as so redesignated), by striking ``(iv)'' 
    each time it appears and inserting ``(v)''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.
    SEC. 103. PROTECTING BENEFICIARIES THROUGH INFORMATION SHARING.
    (a) Information Sharing To Determine State Foster Care Status.--
        (1) In general.--Section 205(j) of the Social Security Act (42 
    U.S.C. 405(j)) is amended by adding at the end the following:
    ``(11)(A) The Commissioner of Social Security shall--
        ``(i) enter into agreements with each State with a plan 
    approved under part E of title IV for the purpose of sharing and 
    matching data, on an automated monthly basis, in the system of 
    records of the Social Security Administration with each Statewide 
    and Tribal Automated Child Welfare Information System to identify 
    represented minor beneficiaries who are in foster care under the 
    responsibility of the State for such month; and
        ``(ii) in any case in which a represented minor beneficiary has 
    entered or exited foster care or changed foster care placement in 
    such month, redetermine the appropriate representative payee for 
    such individual.
    ``(B) For purposes of this paragraph--
        ``(i) the term `State' has the meaning given such term for 
    purposes of part E of title IV;
        ``(ii) the term `Statewide and Tribal Automated Child Welfare 
    Information System' means a statewide mechanized data collection 
    and information retrieval system described in section 474(a)(3)(C); 
    and
        ``(iii) the term `represented minor beneficiary', with respect 
    to an individual for a month, means a child (as defined for 
    purposes of section 475(8)) entitled to benefits under this title 
    for such month whose benefits are certified for payment to a 
    representative payee.''.
        (2) Conforming change.--Section 471(a)(8)(A) of the Social 
    Security Act (42 U.S.C. 671(a)(8)(A)) is amended by inserting ``the 
    program established by title II,'' after ``XX,''.
        (3) GAO study and report.--
            (A) Evaluation.--As soon as possible after the date of the 
        enactment of this Act, the Comptroller General shall evaluate--
                (i) the number of represented minor beneficiaries in 
            foster care under the responsibility of a State for each 
            month during the previous year;
                (ii) whether the representative payee for each 
            represented minor beneficiary is--

                    (I) a governmental child welfare agency;
                    (II) an organizational payee that is not a 
                governmental child welfare agency;
                    (III) a foster parent or child-care institution 
                (within the meaning of part E of title IV); or
                    (IV) another individual; and

                (iii) whether funds were conserved, used for direct 
            expenses of the minor beneficiary, or used to reimburse the 
            State for foster care maintenance costs.
            (B) Report to congress.--Not later than 36 months after the 
        date of enactment of this Act, the Comptroller General shall 
        submit to Congress a report on the results of the evaluation 
        required under subparagraph (A).
            (C) Definitions.--For purposes of this paragraph--
                (i) the term ``State'' has the meaning given such term 
            for purposes of part E of title IV of the Social Security 
            Act; and
                (ii) the term ``represented minor beneficiary'', with 
            respect to an individual for a month, means a child (as 
            defined for purposes of section 475(8) of the Social 
            Security Act) entitled to benefits under title II of such 
            Act for such month whose benefits are certified for payment 
            to a representative payee.
        (4) Effective date.--
            (A) In general.--The amendments made by this subsection 
        shall apply with respect to months beginning on or after the 
        date that is 1 year after the date of the enactment of this 
        Act.
            (B) Exception if state legislation required.--In the case 
        of a State plan under part E of title IV of the Social Security 
        Act that the Secretary of Health and Human Services determines 
        requires State legislation (other than legislation 
        appropriating funds) in order for the plan to meet the 
        additional requirement imposed by the amendments made under 
        this subsection, such plan shall not be regarded as failing to 
        comply with the requirements of such title solely on the basis 
        of its failure to meet this additional requirement before the 
        first day of the first calendar quarter beginning after the 
        close of the first regular session of the State legislature 
        that begins after the date of the enactment of this Act. For 
        purposes of the previous sentence, in the case of a State that 
        has a 2-year legislative session, each year of such session 
        shall be deemed to be a separate regular session of the State 
        legislature.
    (b) Improving Coordination With Adult Protective Services.--
        (1) In general.--The Commissioner of Social Security shall 
    study and test the administrative feasibility of improving 
    information sharing, in partnership with State agencies that 
    provide adult protective services, with respect to--
            (A) the assessment of an individual's need for a 
        representative payee in connection with benefits to which the 
        individual is entitled under title II or title XVI of the 
        Social Security Act; and
            (B) oversight of individuals and organizations serving as 
        representative payees.
        (2) Report.--Not later than June 30, 2022, the Commissioner of 
    Social Security shall conclude the study described in paragraph (1) 
    and submit to the Committee on Ways and Means of the House of 
    Representatives and the Committee on Finance of the Senate a report 
    on the results of such study.
    (c) Study on Potential To Coordinate With State Courts.--
        (1) In general.--The Commissioner of Social Security shall 
    enter into an agreement with the Administrative Conference of the 
    United States to conduct a study that includes--
            (A) an overview of potential opportunities for information 
        sharing between the Social Security Administration and State 
        courts and relevant State agencies;
            (B) a detailed analysis of the barriers to such information 
        sharing, including any Federal or State statutory barriers;
            (C) a description of how such information sharing would be 
        implemented, including any additional infrastructure needed; 
        and
            (D) a description of any risks or other factors that the 
        Social Security Administration and the Congress should consider 
        before implementing such information sharing.
        (2) Report.--Not later than June 30, 2020, the Commissioner of 
    Social Security shall submit to the Committee on Ways and Means of 
    the House of Representatives and the Committee on Finance of the 
    Senate and make publicly available a report on the results of the 
    study conducted under paragraph (1).
    SEC. 104. CLARIFYING OVERPAYMENT LIABILITY FOR CHILD IN CHILD 
      WELFARE SYSTEM.
    (a) Amendment to Title II.--Section 204(a) of the Social Security 
Act (42 U.S.C. 404(a)) is amended by adding at the end the following:
    ``(3)(A) When any payment of more than the correct amount is made 
on behalf of an individual who is a represented minor beneficiary for a 
month in which such individual is in foster care under the 
responsibility of a State and the State is the representative payee of 
such individual, the State shall be liable for the repayment of the 
overpayment, and there shall be no adjustment of payments to, or 
recovery by the United States from, such individual.
    ``(B) For purposes of this paragraph, the term `represented minor 
beneficiary' has the meaning given such term in subsection 
(j)(11)(B)(iii).''.
    (b) Amendment to Title XVI.--Section 1631(b) of the Social Security 
Act (42 U.S.C. 1683(b)) is amended--
        (1) by redesignating paragraphs (3) through (7) as paragraphs 
    (4) through (8), respectively; and
        (2) by inserting after paragraph (2) the following:
    ``(3)(A) When any payment of more than the correct amount is made 
on behalf of an individual who is a represented minor beneficiary for a 
month in which such individual is in foster care under the 
responsibility of a State and the State is the representative payee of 
such individual, the State shall be liable for the repayment of the 
overpayment, and there shall be no adjustment of payments to, or 
recovery by the United States from, such individual.
    ``(B) For purposes of this paragraph, the term `represented minor 
beneficiary', with respect to an individual for a month, means a child 
(as defined for purposes of section 475(8)) entitled to benefits under 
this title for such month whose benefits are certified for payment to a 
representative payee.''.
    (c) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to overpayment determinations made on or after the 
date of the enactment of this Act and to any other overpaid amounts 
that have not been recovered as of such date.
    SEC. 105. REPORTS.
    (a) Report on Benefits Misused.--Section 205(j) of the Social 
Security Act (42 U.S.C. 405(j)), as amended by section 103(a), is 
further amended--
        (1) in paragraph (6)--
            (A) by striking ``(A) In addition to'' and inserting ``In 
        addition to''; and
            (B) by striking subparagraph (B); and
        (2) by adding at the end the following:
    ``(12)(A) Not later than January 31 of each fiscal year, the 
Commissioner shall submit to the Committee on Ways and Means of the 
House of Representatives and the Committee on Finance of the Senate a 
report on the total number of individuals entitled to benefits under 
titles II, VIII, and XVI, respectively, (and the number of individuals 
concurrently entitled to benefits under more than one such title) who 
have a representative payee, the total number of such representative 
payees, and the results of all reviews of representative payees 
conducted during the previous fiscal year in connection with benefits 
under this title, title VIII, or title XVI. Such report shall summarize 
problems identified in such reviews and corrective actions taken or 
planned to be taken to correct such problems, and shall include--
        ``(i) the number of such reviews;
        ``(ii) the results of such reviews;
        ``(iii) the number of cases in which the representative payee 
    was changed and why;
        ``(iv) the number of reviews conducted in response to 
    allegations or concerns about the performance or suitability of the 
    payee;
        ``(v) the number of cases discovered in which there was a 
    misuse of funds, and the total dollar amount of benefits determined 
    by the Commissioner during such fiscal year to have been misused by 
    a representative payee (regardless of the fiscal year in which such 
    misuse occurred);
        ``(vi) the number of cases discovered in which such misuse of 
    funds resulted from the negligent failure of the Commissioner to 
    investigate or monitor a representative payee;
        ``(vii) the final disposition of such cases of misuse of funds, 
    including--
            ``(I) any criminal, civil, and administrative penalties 
        imposed;
            ``(II) the total dollar amount of misused benefits repaid 
        to beneficiaries and alternative representative payees under 
        each of--
                ``(aa) paragraph (5) (on the basis of a negligent 
            failure of the Commissioner described in such paragraph);
                ``(bb) paragraph (5) (on any other basis); and
                ``(cc) paragraph (7);
            ``(III) the total dollar amount of misused benefits 
        recovered under each of--
                ``(aa) paragraph (5); and
                ``(bb) paragraph (7);
        ``(viii) any updates to prior year reports necessary to reflect 
    subsequent recoveries and repayments pertaining to misuse 
    determinations made in prior years; and
        ``(ix) such other information as the Commissioner deems 
    appropriate.
    ``(B) Each report required under this paragraph for a fiscal year 
shall include the information described in clauses (i) through (ix) of 
subparagraph (A) with respect to--
        ``(i) all representative payees reviewed during such fiscal 
    year;
        ``(ii) all such representative payees that are organizations, 
    separated by whether such organization collects a fee for its 
    services as a representative payee;
        ``(iii) all such representative payees that are individuals 
    serving 15 or more individuals; and
        ``(iv) all such representative payees that are individuals 
    serving less than 15 individuals, separated by whether such 
    representative payee is a family member.''.
    (b) Report on Elimination of the Accounting Form.--The Commissioner 
shall--
        (1) conduct a study on the changes made by the amendments made 
    by section 102 of the Strengthening Protections for Social Security 
    Beneficiaries Act of 2018, which shall include the impact of such 
    changes on families, beneficiaries, and the operations of the 
    Social Security Administration; and
        (2) not later than January 1, 2021, submit a report on the 
    results of such study to the Committee on Ways and Means of the 
    House of Representatives and the Committee on Finance of the 
    Senate.
    (c) Report on the Advanced Designation Policy.--The Commissioner 
shall--
        (1) conduct a study on the changes made by the amendments made 
    by section 201 of the Strengthening Protections for Social Security 
    Beneficiaries Act of 2018, which shall include the impact of such 
    changes on beneficiaries and the operations of the Social Security 
    Administration; and
        (2) not later than January 1, 2025, submit a report on the 
    results of such study to the Committee on Ways and Means of the 
    House of Representatives and the Committee on Finance of the 
    Senate.

            TITLE II--IMPROVING PAYEE SELECTION AND QUALITY

    SEC. 201. ADVANCE DESIGNATION OF REPRESENTATIVE PAYEES.
    (a) In General.--Section 205(j)(1) of the Social Security Act (42 
U.S.C. 405(j)(1)) is amended by adding at the end the following:
    ``(C)(i) An individual who is entitled to or is an applicant for a 
benefit under this title, title VIII, or title XVI, who has attained 18 
years of age or is an emancipated minor, may, at any time, designate 
one or more other individuals to serve as a representative payee for 
such individual in the event that the Commissioner of Social Security 
determines under subparagraph (A) that the interest of such individual 
would be served by certification for payment of such benefits to which 
the individual is entitled to a representative payee. If the 
Commissioner of Social Security makes such a determination with respect 
to such individual at any time after such designation has been made, 
the Commissioner shall--
        ``(I) certify payment of such benefits to the designated 
    individual, subject to the requirements of paragraph (2); or
        ``(II) if the Commissioner determines that certification for 
    payment of such benefits to the designated individual would not 
    satisfy the requirements of paragraph (2), that the designated 
    individual is unwilling or unable to serve as representative payee, 
    or that other good cause exists, certify payment of such benefits 
    to another individual or organization, in accordance with paragraph 
    (1).
    ``(ii) An organization may not be designated to serve as a 
representative payee under this subparagraph.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date that is 2 years after the date of the enactment 
of this section.
    (c) Regulations.--Not later than 18 months after the date of the 
enactment of this section, the Commissioner of Social Security shall 
promulgate regulations specifying the information an individual is 
required to provide to the Commissioner in order to designate another 
individual to serve as the individual's representative payee under 
section 205(j)(1)(C) of the Social Security Act (as added by subsection 
(a)).
    (d) Notification to Beneficiaries.--Not later than January 1, 2020, 
and annually thereafter, the Commissioner of Social Security shall 
notify each individual entitled to a benefit under title II, VIII, or 
XVI of the Social Security Act of the name of any individual designated 
to serve as the individual's representative payee under section 
205(j)(1)(C) of such Act (as added by subsection (a)).
    SEC. 202. PROHIBITION ON INDIVIDUALS CONVICTED OF CERTAIN CRIMES 
      SERVING AS REPRESENTATIVE PAYEES.
    (a) Amendments to Title II.--Section 205(j)(2) of the Social 
Security Act (42 U.S.C. 405(j)(2)) is amended--
        (1) in subparagraph (B)--
            (A) in clause (i)--
                (i) in subclause (V), by striking ``and'' at the end;
                (ii) in subclause (VI), by striking the period and 
            inserting ``, and''; and
                (iii) by adding at the end the following:
        ``(VII) determine whether such person has been convicted (and 
    not subsequently exonerated), under Federal or State law, of a 
    felony provided under clause (iv), or of an attempt or a conspiracy 
    to commit such a felony.''; and
            (B) by adding at the end the following:
    ``(iv) The felony crimes provided under this clause, whether an 
offense under State or Federal law, are the following:
        ``(I) Human trafficking, including as prohibited under sections 
    1590 and 1591 of title 18, United States Code.
        ``(II) False imprisonment, including as prohibited under 
    section 1201 of title 18, United States Code.
        ``(III) Kidnapping, including as prohibited under section 1201 
    of title 18, United States Code.
        ``(IV) Rape and sexual assault, including as prohibited under 
    sections 2241, 2242, 2243, and 2244 of title 18, United States 
    Code.
        ``(V) First-degree homicide, including as prohibited under 
    section 1111 of title 18, United States Code.
        ``(VI) Robbery, including as prohibited under section 2111 of 
    title 18, United States Code.
        ``(VII) Fraud to obtain access to government assistance, 
    including as prohibited under sections 287, 1001, and 1343 of title 
    18, United States Code.
        ``(VIII) Fraud by scheme, including as prohibited under section 
    1343 of title 18, United States Code.
        ``(IX) Theft of government funds or property, including as 
    prohibited under section 641 of title 18, United States Code.
        ``(X) Abuse or neglect, including as prohibited under sections 
    111, 113, 114, 115, 116, or 117 of title 18, United States Code.
        ``(XI) Forgery, including as prohibited under section 642 and 
    chapter 25 (except section 512) of title 18, United States Code.
        ``(XII) Identity theft or identity fraud, including as 
    prohibited under sections 1028 and 1028A of title 18, United States 
    Code.
The Commissioner of Social Security may promulgate regulations to 
provide for additional felony crimes under this clause.
    ``(v)(I) For the purpose of carrying out the activities required 
under subparagraph (B)(i) as part of the investigation under 
subparagraph (A)(i), the Commissioner may conduct a background check of 
any individual seeking to serve as a representative payee under this 
subsection and may disqualify from service as a representative payee 
any such individual who fails to grant permission for the Commissioner 
to conduct such a background check.
    ``(II) The Commissioner may revoke certification of payment of 
benefits under this subsection to any individual serving as a 
representative payee on or after January 1, 2019 who fails to grant 
permission for the Commissioner to conduct such a background check.''; 
and
        (2) in subparagraph (C)--
            (A) in clause (i)--
                (i) in subclause (IV), by striking ``or'' at the end;
                (ii) in subclause (V), by striking the period at the 
            end and inserting ``, or''; and
                (iii) by adding at the end the following:
        ``(VI) except as provided in clause (vi), such person has 
    previously been convicted (and not subsequently exonerated) as 
    described in subparagraph (B)(i)(VII).''; and
            (B) by adding at the end the following:
    ``(vi)(I) With respect to any person described in subclause (II)--
        ``(aa) subparagraph (B)(i)(VII) shall not apply; and
        ``(bb) the Commissioner may grant an exemption from the 
    provisions of clause (i)(VI) if the Commissioner determines that 
    such exemption is in the best interest of the individual entitled 
    to benefits.
    ``(II) A person is described in this subclause if the person--
        ``(aa) is the custodial parent of a minor child for whom the 
    person applies to serve;
        ``(bb) is the custodial spouse of the beneficiary for whom the 
    person applies to serve;
        ``(cc) is the custodial parent of a beneficiary who is under a 
    disability (as defined in section 223(d)) which began before the 
    beneficiary attained the age of 22, for whom the person applies to 
    serve;
        ``(dd) is the custodial court appointed guardian of the 
    beneficiary for whom the person applies to serve;
        ``(ee) is the custodial grandparent of a minor grandchild for 
    whom the person applies to serve;
        ``(ff) is the parent who was previously representative payee 
    for his or her minor child who has since turned 18 and continues to 
    be eligible for such benefit; or
        ``(gg) received a presidential or gubernatorial pardon for the 
    relevant conviction.''.
    (b) Amendments to Title VIII.--Section 807 of the Social Security 
Act (42 U.S.C. 1007) is amended--
        (1) in subsection (b)--
            (A) in paragraph (2)--
                (i) in subparagraph (E), by striking ``and'' at the 
            end;
                (ii) in subparagraph (F), by striking the period and 
            inserting ``, and''; and
                (iii) by adding at the end the following:
            ``(G) determine whether such person has been convicted (and 
        not subsequently exonerated), under Federal or State law, of a 
        felony provided under paragraph (4), or of an attempt or a 
        conspiracy to commit such a felony.''; and
            (B) by adding at the end the following:
        ``(4) The felony crimes provided under this paragraph, whether 
    an offense under State or Federal law, are the following:
            ``(A) Human trafficking, including as prohibited under 
        sections 1590 and 1591 of title 18, United States Code.
            ``(B) False imprisonment, including as prohibited under 
        section 1201 of title 18, United States Code.
            ``(C) Kidnapping, including as prohibited under section 
        1201 of title 18, United States Code.
            ``(D) Rape and sexual assault, including as prohibited 
        under sections 2241, 2242, 2243, and 2244 of title 18, United 
        States Code.
            ``(E) First-degree homicide, including as prohibited under 
        section 1111 of title 18, United States Code.
            ``(F) Robbery, including as prohibited under section 2111 
        of title 18, United States Code.
            ``(G) Fraud to obtain access to government assistance, 
        including as prohibited under sections 287, 1001, and 1343 of 
        title 18, United States Code.
            ``(H) Fraud by scheme, including as prohibited under 
        section 1343 of title 18, United States Code.
            ``(I) Theft of government funds or property, including as 
        prohibited under section 641 of title 18, United States Code.
            ``(J) Abuse or neglect, including as prohibited under 
        sections 111, 113, 114, 115, 116, or 117 of title 18, United 
        States Code.
            ``(K) Forgery, including as prohibited under section 642 
        and chapter 25 (except section 512) of title 18, United States 
        Code.
            ``(L) Identity theft or identity fraud, including as 
        prohibited under sections 1028 and 1028A of title 18, United 
        States Code.
    The Commissioner of Social Security may promulgate regulations to 
    provide for additional felony crimes under this clause.
    ``(5)(A) For the purpose of carrying out the activities required 
under paragraph (2) as part of the investigation under paragraph 
(1)(A), the Commissioner may conduct a background check of any 
individual seeking to serve as a representative payee under this 
subsection and may disqualify from service as a representative payee 
any such individual who fails to grant permission for the Commissioner 
to conduct such a background check.
    ``(B) The Commissioner may revoke certification of payment of 
benefits under this subsection to any individual serving as a 
representative payee on or after January 1, 2019 who fails to grant 
permission for the Commissioner to conduct such a background check.''; 
and
        (2) in subsection (d)--
            (A) in paragraph (1)--
                (i) in subparagraph (D), by striking ``or'' at the end;
                (ii) in subparagraph (E), by striking the period at the 
            end and inserting ``, or''; and
                (iii) by adding at the end the following:
            ``(F) except as provided in paragraph (2)(D), such person 
        has previously been convicted (and not subsequently exonerated) 
        as described in subsection (b)(2)(G).''; and
            (B) in paragraph (2), by adding at the end the following:
    ``(D)(i) With respect to any person described in clause (II)--
    ``(I) subsection (b)(2)(G) shall not apply; and
    ``(II) the Commissioner may grant an exemption from the provisions 
of paragraph (1)(F) if the Commissioner determines that such exemption 
is in the best interest of the individual entitled to benefits.
    ``(ii) A person is described in this clause if the person--
    ``(I) is the custodial spouse of the beneficiary for whom the 
person applies to serve;
    ``(II) is the custodial court appointed guardian of the beneficiary 
for whom the person applies to serve; or
    ``(III) received a presidential or gubernatorial pardon for the 
relevant conviction.''.
    (c) Amendments to Title XVI.--Section 1631(a)(2)(B) of the Social 
Security Act (42 U.S.C. 1383(a)(2)(B)) is amended--
        (1) in clause (ii)--
            (A) in subclause (V), by striking ``and'' at the end;
            (B) in subclause (VI), by striking the period and inserting 
        ``, and''; and
            (C) by adding at the end the following:
        ``(VII) determine whether such person has been convicted (and 
    not subsequently exonerated), under Federal or State law, of a 
    felony provided under clause (xv), or of an attempt or a conspiracy 
    to commit such a felony.'';
        (2) in clause (iii)--
            (A) in subclause (IV), by striking ``or'' at the end;
            (B) in subclause (V), by striking the period at the end and 
        inserting ``, or''; and
            (C) by adding at the end the following:
        ``(VI) except as provided in clause (xvii), such person has 
    previously been convicted (and not subsequently exonerated) as 
    described in clause (ii)(VII).''; and
        (3) by adding at the end the following:
    ``(xv) The felony crimes provided under this clause, whether an 
offense under State or Federal law, are the following:
        ``(I) Human trafficking, including as prohibited under sections 
    1590 and 1591 of title 18, United States Code.
        ``(II) False imprisonment, including as prohibited under 
    section 1201 of title 18, United States Code.
        ``(III) Kidnapping, including as prohibited under section 1201 
    of title 18, United States Code.
        ``(IV) Rape and sexual assault, including as prohibited under 
    sections 2241, 2242, 2243, and 2244 of title 18, United States 
    Code.
        ``(V) First-degree homicide, including as prohibited under 
    section 1111 of title 18, United States Code.
        ``(VI) Robbery, including as prohibited under section 2111 of 
    title 18, United States Code.
        ``(VII) Fraud to obtain access to government assistance, 
    including as prohibited under sections 287, 1001, and 1343 of title 
    18, United States Code.
        ``(VIII) Fraud by scheme, including as prohibited under section 
    1343 of title 18, United States Code.
        ``(IX) Theft of government funds or property, including as 
    prohibited under section 641 of title 18, United States Code.
        ``(X) Abuse or neglect, including as prohibited under sections 
    111, 113, 114, 115, 116, or 117 of title 18, United States Code.
        ``(XI) Forgery, including as prohibited under section 642 and 
    chapter 25 (except section 512) of title 18, United States Code.
        ``(XII) Identity theft or identity fraud, including as 
    prohibited under sections 1028 and 1028A of title 18, United States 
    Code.
The Commissioner of Social Security may promulgate regulations to 
provide for additional felony crimes under this clause.
    ``(xvi)(I) For the purpose of carrying out the activities required 
under clause (ii) as part of the investigation under clause (i)(I), the 
Commissioner may conduct a background check of any individual seeking 
to serve as a representative payee under this subsection and may 
disqualify from service as a representative payee any such individual 
who fails to grant permission for the Commissioner to conduct such a 
background check.
    ``(II) The Commissioner may revoke certification of payment of 
benefits under this subsection to any individual serving as a 
representative payee on or after January 1, 2019 who fails to grant 
permission for the Commissioner to conduct such a background check.
    ``(xvii)(I) With respect to any person described in subclause 
(II)--
        ``(aa) clause (ii)(VII) shall not apply; and
        ``(bb) the Commissioner may grant an exemption from the 
    provisions of clause (iii)(VI) if the Commissioner determines that 
    such exemption is in the best interest of the individual entitled 
    to benefits.
    ``(II) A person is described in this subclause if the person--
        ``(aa) is the custodial parent of a minor child for whom the 
    person applies to serve;
        ``(bb) is the custodial spouse of the beneficiary for whom the 
    person applies to serve;
        ``(cc) is the custodial parent of a beneficiary who is under a 
    disability which began before the beneficiary attained the age of 
    22, for whom the person applies to serve;
        ``(dd) is the custodial court appointed guardian of the 
    beneficiary for whom the person applies to serve;
        ``(ee) is the custodial grandparent of a minor grandchild for 
    whom the person applies to serve;
        ``(ff) is the parent who was previously representative payee 
    for his or her minor child who has since turned 18 and continues to 
    be eligible for such benefit; or
        ``(gg) received a presidential or gubernatorial pardon for the 
    relevant conviction.''.
    (d) Application to New Appointments.--Subject to subsection (e), 
the amendments made by subsections (a), (b), and (c) shall apply with 
respect to any individual appointed to serve as a representative payee 
pursuant to section 205(j), 807, or 1631(a)(2) of the Social Security 
Act on or after January 1, 2019.
    (e) Application to Prior Appointments.--
        (1) In general.--Not later than January 1, 2024, the 
    Commissioner of Social Security shall conduct a review of each 
    individual serving as a representative payee pursuant to 205(j), 
    807, or 1631(a)(2) of the Social Security Act, to determine whether 
    such individual has been convicted of a felony as described in 
    section 205(j)(2)(B)(i)(VII), 807(b)(2)(G), or 
    1631(a)(2)(B)(ii)(VII), respectively (as such provisions are added 
    by this section). Except as provided in section 205(j)(2)(C)(vi), 
    807(d)(2)(D), or 1631(a)(2)(B)(xvii) (as so added), any individual 
    determined by the Commissioner to have been so convicted may not 
    serve as a representative payee on or after the date of such 
    determination.
        (2) Priority.--In conducting reviews under paragraph (1), the 
    Commissioner shall prioritize reviews of the following categories 
    of individuals, in the following order:
            (A) An individual serving as representative payee for 15 or 
        more individuals.
            (B) An individual serving as representative payee for an 
        individual who is not related to the representative payee.
            (C) An individual serving as representative payee for an 
        individual who has attained the age of 18 and is not the spouse 
        of the representative payee.
    (f) Periodic Review.--Not later than 1 year after the date of 
enactment of this section, the Commissioner of Social Security shall 
issue regulations to establish a process for reviewing each individual 
serving as a representative payee pursuant to section 205(j), 807, or 
1631(a)(2) of the Social Security Act (other than individuals with 
respect to whom an exemption has been granted under section 
205(j)(2)(C)(vi), 807(d)(2)(D), or 1631(a)(2)(B)(xvii)) not less than 
once every 5 years to determine whether any such individual has been 
convicted of a felony as described in subsection (e)(1) of this 
section.
    SEC. 203. PROHIBITION ON INDIVIDUALS WITH REPRESENTATIVE PAYEES 
      SERVING AS REPRESENTATIVE PAYEES.
    (a) Amendment to Title II.--Section 205(j)(2)(C)(i) of the Social 
Security Act (42 U.S.C. 405(j)(2)(C)(i)), as amended by section 
202(a)(2), is further amended--
        (1) in subclause (V), by striking ``or'' at the end;
        (2) in subclause (VI), by striking the period and inserting ``, 
    or''; and
        (3) by adding at the end the following:
        ``(VII) such person's benefits under this title, title VIII, or 
    title XVI are certified for payment to a representative payee 
    during the period for which the individual's benefits would be 
    certified for payment to another person.''.
    (b) Amendment to Title VIII.--Section 807(d)(1) of the Social 
Security Act (42 U.S.C. 1007(d)(1)), as amended by section 202(b)(2), 
is further amended--
        (1) in subparagraph (E), by striking ``or'' at the end;
        (2) in subparagraph (F), by striking the period and inserting 
    ``, or''; and
        (3) by adding at the end the following:
            ``(G) such person's benefits under this title, title II, or 
        title XVI are certified for payment to a representative payee 
        during the period for which the individual's benefits would be 
        certified for payment to another person.''.
    (c) Amendment to Title XVI.--Section 1631(a)(2)(B)(iii) of the 
Social Security Act (42 U.S.C. 1383(a)(2)(B)(iii)), as amended by 
section 202(c)(2), is further amended--
        (1) in subclause (V), by striking ``or'' at the end;
        (2) in subclause (VI), by striking the period and inserting ``, 
    or''; and
        (3) by adding at the end the following:
        ``(VII) such person's benefits under this title, title II, or 
    title VIII are certified for payment to a representative payee 
    during the period for which the individual's benefits would be 
    certified for payment to another person.''.
    (d) Effective Date.--
        (1) New appointments.--Subject to paragraph (2), the amendments 
    made by this section shall apply with respect to any individual 
    appointed to serve as a representative payee under title II, title 
    VIII, or title XVI of the Social Security Act on or after January 
    1, 2019.
        (2) Prior appointments.--With respect to individuals serving as 
    a representative payee whose benefits under this title, title VIII, 
    or title XVI are certified for payment to another representative 
    payee as of January 1, 2019, the Commissioner shall take any steps 
    necessary to terminate such individual's service as a 
    representative payee as soon as possible, but no later than January 
    1, 2024.
    SEC. 204. REASSESSMENT OF PAYEE SELECTION AND REPLACEMENT POLICIES.
    (a) In General.--The Commissioner of Social Security shall conduct, 
with opportunity for public comment, a review and reassessment of--
        (1) the appropriateness of its order of preference for 
    selecting representative payees, including payees who may be 
    creditors of the beneficiary or who are private, for-profit 
    institutions; and
        (2) the effectiveness of its policy and operational procedures 
    in properly determining when to change a representative payee, 
    including--
            (A) from a payee that has a higher order of preference 
        (such as a family member) to a payee that has a lower order of 
        preference (such as a creditor); or
            (B) when a request to change payees arises from someone 
        other than the beneficiary.
    (b) Report.--Not later than 18 months after the date of the 
enactment of this Act, the Commissioner of Social Security shall submit 
to the Committee on Ways and Means of the House of Representatives and 
the Committee on Finance of the Senate and make publicly available a 
report on the results of the review and reassessment under subsection 
(a).

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.