[Federal Register Volume 70, Number 55 (Wednesday, March 23, 2005)]
[Proposed Rules]
[Pages 14603-14607]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-5717]


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SOCIAL SECURITY ADMINISTRATION

20 CFR Part 498

RIN 0960-AG08


Civil Monetary Penalties, Assessments and Recommended Exclusions

AGENCY: Office of the Inspector General (OIG), Social Security 
Administration.

ACTION: Proposed rules.

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SUMMARY: In accordance with legislative changes, we propose to add new 
rules that would amend current procedures for the Social Security 
Administration's civil monetary penalty cases. These proposed rules 
would amend the current rules by holding representative payees liable 
for the wrongful conversion of Social Security benefits and by adding a 
provision for withholding disclosure of material statements to the 
Social Security Administration. These proposed rules would also amend 
the current rules by prohibiting offers that charge fees for products 
or services otherwise provided free of charge by the Social Security 
Administration, unless sufficient notice is provided, and by adding to 
the list of enumerated terms that could be used as part of misleading 
advertisements. These revisions reflect provisions of the Social 
Security Protection Act of 2004.
    These proposed rules would also reflect the addition of title VIII, 
Special Benefits for Certain World War II Veterans, to the Social 
Security Act, to subject individuals to the possible imposition of a 
civil monetary penalty and assessment for a violation of this title. 
These revisions reflect provisions of the Foster Care Independence Act 
of 1999.

DATES: To be sure that your comments are considered, we must receive 
them no later than May 23, 2005.

ADDRESSES: You may give us your comments by: Using our Internet site 
facility, (i.e., Social Security Online) at http://policy.ssa.gov/pnpublic.nsf/LawsRegs or the Federal eRulemaking portal at http://www.regulations.gov; telefax to (410) 966-2830; or letter to the 
Inspector General of the Social Security Administration c/o 
Commissioner of Social Security, P.O. Box 17703, Baltimore, Maryland 
21235-7703. You may also deliver them to the Office of Regulations, 
Social Security Administration, 107 Altmeyer Building, 6401 Security 
Boulevard, Baltimore, MD 21235-6401 between 8 a.m. and 4:30 p.m. on 
regular business days. Comments are posted on our Internet site at 
http://policy.ssa.gov/pnpublic.nsf/LawsRegs or you may inspect them on 
regular business days by making arrangements with the contact person 
shown in this preamble.

Electronic Version

    The electronic version of this document is available on the date of 
publication in the Federal Register at http://www.gpoaccess.gov/fr/index.html. It is also available on the internet site for SSA, (i.e. 
Social Security Online) at http://policy.ssa.gov/pnpublic.nsf/LawsRegs.

FOR FURTHER INFORMATION CONTACT: Kathy A. Buller, Chief Counsel to the 
Inspector General, Social Security Administration, Office of the 
Inspector General, Room 4-M-1 Operations, 6401 Security Boulevard, 
Baltimore, MD 21235-6401, (410) 965-2827 or TTY (410) 966-5609.

SUPPLEMENTARY INFORMATION:

Background

    The Social Security Administration (SSA) was established as an 
independent agency effective March 31, 1995, under Public Law 103-296, 
the Social Security Independence and Program Improvements Act of 1994 
(SSIPIA). The SSIPIA also created an independent Office of the 
Inspector General (OIG), to which the Commissioner of Social Security 
(Commissioner) delegated certain authority under the civil monetary 
penalty (CMP) provisions on June 28, 1995.
    On November 27, 1995, the OIG published a final rule at 60 FR 58225 
establishing a new part 498 in title 20 of the Code of Federal 
Regulations. This part serves as a repository for SSA's existing CMP 
regulations which implemented section 1140 of the Social Security Act 
(the Act). These regulations were previously located at 42 CFR part 
1003.
    In addition, the OIG published a final rule on April 24, 1996 at 61 
FR 18078 to implement SSA's new CMP authority provided under section 
206(b) of the SSIPIA, which added section 1129 to the Act, effective 
October 1, 1994. This authority allows for the imposition of penalties 
and assessments against any individual, organization, agency or other 
entity that makes or causes to be made a false or misleading statement 
or representation of a material fact for use in determining initial or 
continuing rights to Old-Age, Survivors, and Disability Insurance or 
supplemental security income benefit payments if the person knew or 
should have known that such statement or representation was false, 
misleading or omitted a material fact.

Changes Required by Public Law 106-169

    Section 251(a) of Public Law 106-169, the Foster Care Independence 
Act of 1999, enacted December 14, 1999, added title VIII, Special 
Benefits for Certain World War II veterans, to the Social Security Act. 
Section 251(b)(6) of Public Law 106-169 amended section 1129 to include 
reference to title VIII.

Changes Required by Public Law 108-203

    Sections 111, 201, 204, and 207 of Public Law 108-203, the Social 
Security Protection Act of 2004, enacted March 2, 2004, amended 
sections 1129 and 1140 of the Social Security Act (42 U.S.C. 1320a-8 
and 1320b-10).

Section 1129 Amendments

    The two amendments to section 1129 broaden the scope of the civil 
monetary penalty program by adding new categories for penalties (1) 
against representative payees with respect to wrongful conversions, and 
(2) against individuals who withhold the

[[Page 14604]]

disclosure of material facts to the Social Security Administration.
    The first amendment to section 1129 extends the civil monetary 
penalty provisions to representative payees of individuals entitled to 
benefits. The proposed rule would implement this amendment by 
subjecting representative payees who wrongfully convert a payment of 
benefits intended for another Social Security beneficiary to a penalty 
of up to $5,000 for each such wrongful conversion. Our proposed rule 
would apply to individuals, organizations, agencies, or other entities 
who receive benefits on behalf of another individual, for the purpose 
of distributing the benefits with the beneficiary's best interests in 
mind. Previously, representative payees could elude civil monetary 
penalties under section 1129 for such wrongful actions, as section 1129 
did not extend to representative payees who improperly converted 
lawfully issued payments intended for another beneficiary.
    The second amendment under section 1129 extends the civil monetary 
penalty provisions to individuals who withhold disclosure of material 
facts used in the determination of eligibility of benefit amounts under 
title II, title VIII or title XVI of the Social Security Act from SSA.
    Our proposed rule would implement this amendment by providing for 
civil monetary penalties and assessments to be imposed for the failure 
to come forward and notify SSA of changed circumstances that affect 
eligibility or benefit amounts when the individual knew or should have 
known that the withheld fact was material and that the failure to come 
forward was misleading.
    This amendment extends the coverage of section 1129. Previously, 
under section 1129, the OIG was only able to impose a civil monetary 
penalty and assessment against individuals who made false statements or 
representations or omitted a material fact on a SSA form or to a SSA 
employee. Therefore, a civil monetary penalty and assessment could not 
be imposed against an individual who should have known to, but did not, 
come forward to notify the SSA of changed circumstances that affected 
that individual's or another individual's eligibility or benefit 
amount. This amendment is intended to cover situations that include 
(but are not limited to) the following: (1) When an individual, who has 
a joint bank account with a beneficiary, knows or should have known 
that SSA directly deposits the beneficiary's Social Security checks in 
the joint account; upon death of the beneficiary, the individual fails 
to disclose the death of the beneficiary to SSA in order to continue to 
receive and use the deceased beneficiary's Social Security checks; and 
(2) when an individual receives benefits under one Social Security 
number, but is working under a second Social Security number.
    This proposed rule would allow the OIG to impose a penalty of up to 
$5,000, and an assessment in lieu of damages, for each individual 
payment of Social Security benefits received while withholding 
disclosure of such material fact.
    The Senate Committee Report, 108-176, accompanying Public Law 108-
203, states in its analysis of section 201, under the subheading Reason 
for Change, at page 13-14, that this amendment is not intended to apply 
against individuals whose failure to come forward was not for the 
purpose of improperly obtaining or continuing to receive benefits.
    This amendment is effective for violations occurring after the date 
on which the Commissioner of Social Security implements the centralized 
computer file described in section 202 of Public Law 108-203.
    This amendment strengthens the deterrence factor of section 1129 by 
enabling the OIG to pursue civil monetary penalties and assessments 
against individuals who withhold disclosure of material facts in order 
to receive benefits to which they may not be entitled. The OIG will 
continue to use its discretion to impose reasonable penalties on a 
case-by-case basis by applying the five enumerated factors employed in 
other section 1129 cases, as set out at 20 CFR 498.106(a).

Section 1140 Amendments

    Section 1140 prohibits individuals and groups from using specific 
terms related to Social Security in an advertisement or other format 
that could be interpreted or construed as conveying the impression that 
the advertisement is approved, endorsed, or authorized by the Social 
Security Administration. Section 1140 is aimed at protecting consumers, 
especially senior citizens who rely on SSA and are some of our most 
vulnerable stakeholders, from being victimized by misleading 
advertisers or direct marketers who improperly use Social Security 
symbols or emblems in order to suggest they have some connection with 
or authorization from SSA.
    The first amendment to section 1140 authorizes the Commissioner to 
impose a penalty against certain individuals or groups who offer to 
assist an individual in obtaining products or services for a fee that 
the Social Security Administration provides free of charge. If the 
individual or group charges a fee for such product or service, the 
solicitation/mailing for services must include a written notice stating 
the product or service is available from the Social Security 
Administration free of charge. Section 204 of Public Law 108-203 
authorizes the Commissioner to set the standards for the notice with 
respect to content, placement and legibility. Pursuant to this 
authority, our proposed rule would require clear and prominent display 
of the notice. By drawing the attention of the reader, the notice would 
help protect consumers. The goal of this regulation would be to prevent 
solicitations/mailings that embed such notices among other text, or 
place the notice in small type face in an attempt to hide the fact that 
the products or services are provided free of charge by SSA.
    In addition, the amendment provides exceptions for persons serving 
as a claimant representative in connection with a claim arising under 
title II, title VIII or title XVI and for persons assisting individuals 
in a plan with the goal of supporting themselves without Social 
Security disability benefits.
    The second amendment to section 1140 adds certain words and phases 
to the statute and prohibits the use of these words and phrases in a 
misleading manner. Specifically, the amendment expands section 1140 to 
include words associated with ``Death Benefits Update,'' ``Federal 
Benefit Information,'' ``Funeral Expenses,'' or ``Final Supplemental 
Program.'' These words and phrases have been used by solicitors/
marketers to give the false impression that their solicitations/
mailings are connected to or authorized by the SSA.

Explanation of Proposed Regulations

    We are proposing the following changes in our regulations to 
reflect the amendments to the Act made by section 251 of Public Law 
106-169 and sections 111, 201, 204, and 207 of Public Law 108-203.

A. Basis and Purpose

    We propose to amend Sec. Sec.  498.100 and 498.102 to include:
    (1) Individuals who fail to come forward to disclose to SSA a 
material fact, which they knew or should have known was material and 
who knew or should have known that such withholding disclosure of a 
material fact was misleading, for purposes of determining eligibility 
for, or the amount of, Social Security benefits under titles II, VIII, 
or XVI of the Act; and

[[Page 14605]]

    (2) Representative payees who convert payments received under 
titles II, VIII, or XVI of the Act, to a use that the representative 
payee knew or should have known was other than for the use and benefit 
of the beneficiary, as new bases for imposing a civil monetary penalty 
and assessment under section 1129.
    We also propose to amend Sec.  498.102 to include:
    (1) In the list of words prohibited to be used in a manner that 
such person knew or should have known would convey the false impression 
that the solicitation/mailing was approved, endorsed, or authorized by 
the SSA or that the sender had some connection with or authorization 
from the SSA, the following: (a) Death Benefits Update; (b) Federal 
Benefit Information; (c) Funeral Expenses; or (d) Final Supplemental 
Program to the previously existing list of ``Social Security,'' 
``Social Security Administration,'' ``Social Security Account,'' 
``Social Security System,'' ``Supplemental Security Income Program,'' 
``SSA,'' ``SSI'' or any combination of those words; and
    (2) The failure to provide written notice in a solicitation/mailing 
offering to assist an individual in obtaining products or services that 
the mailer knew or should have known were provided free of charge by 
the SSA pursuant to the standards set out in Sec.  498.102(d), as new 
bases for imposing a civil monetary penalty and assessment under 
section 1140.

B. Definitions

    We propose to amend the definition of ``material fact'' in Sec.  
498.101 to include title VIII of the Social Security Act, to reflect 
the inclusion of this title in section 1129 by Public Law 106-169.
    We also propose to insert a definition for ``Otherwise withhold 
disclosure'' to mean the failure to come forward to notify the SSA of a 
material fact, when such person knew or should have known that the 
withheld fact was material and that such withholding was misleading for 
purposes of determining eligibility or Social Security benefit amount 
for that person or another person.

C. Amount of Penalty and Assessment

    We propose to amend Sec. Sec.  498.103 and 498.104 to authorize the 
imposition of a civil monetary penalty and assessment against: (1) 
Individuals who fail to come forward to disclose to SSA a material 
fact, which they knew or should have known was material and who knew or 
should have known that such withholding disclosure of a material fact 
was misleading, for purposes of determining eligibility for, or the 
amount of, Social Security benefits under titles II, VIII, or XVI of 
the Act; (2) representative payees who convert payments received under 
titles II, VIII, or XVI of the Act to a use that the representative 
payee knew or should have known was other than for the use and benefit 
of the beneficiary; (3) individuals who use in a solicitation/mailing 
the phrases ``Death Benefits Update,'' ``Federal Benefit Information,'' 
``Funeral Expenses,'' or ``Final Supplemental Program'' in a manner 
that such person knew or should have known would convey the false 
impression that the solicitation/mailing was approved, endorsed, or 
authorized by the SSA or that the sender had some connection with or 
authorization from the SSA; and, (4) entities that fail to provide 
written notice in a solicitation/mailing offering to assist an 
individual in obtaining products or services that the mailer knew or 
should have known were provided free of charge by the SSA, pursuant to 
the standards set out in Sec.  498.102(d).

D. Determination and Notice of Proposed Determination

    We are proposing to amend Sec. Sec.  498.106 and 498.109 to reflect 
the amendments to Sec. Sec.  498.102, 498.103, and 498.104.

E. Collateral Estoppel and Collection of Penalty and Assessment

    We are proposing to amend Sec. Sec.  498.114 and 498.128 to reflect 
the expansion of the scope of section 1129 by Public Law 108-203, to 
include more than false statements or omissions from false statements 
in connection with an individual's eligibility for, or amount of, 
Social Security benefits and the addition of title VIII by Public Law 
106-169.

Clarity of These Regulations

    Executive Order 12866, as amended by Executive Order 13258, 
requires each agency to write all rules in plain language. In addition 
to your substantive comments on these rules, we invite your comments in 
how to make these rules easier to understand. For example:
     Have we organized the material to suit your needs?
     Are the requirements in the rules clearly stated?
     Do the rules contain technical language or jargon that is 
unclear?
     Would a different format (grouping and order of sections, 
use of headings, paragraphing) make the rules easier to understand?
     Would more (but shorter) sections be better?
     Could we improve clarity by adding tables, lists or 
diagrams?
     What else could we do to make the rules easier to 
understand?

Regulatory Procedures

Executive Order 12866

    We have consulted with the Office of Management and Budget (OMB) 
and determined that these proposed rules meet the requirements for a 
significant regulatory action under Executive Order 12866, as amended 
by Executive Order 13258. Thus, they are subject to OMB review.

Regulatory Flexibility Act

    We have determined that no regulatory impact analysis is required 
for these proposed regulations. While the penalties and assessments 
which the OIG could impose as a result of sections 1129 and 1140 of the 
Act might have a slight impact on small entities, we do not anticipate 
that a substantial number of small entities will be significantly 
affected by these proposed rules. Based on our determination, the 
Inspector General certifies that these proposed regulations would not 
have a significant impact on a substantial number of small entities. 
These proposed rules are modifications to the existing sections 1129 
and 1140 of the Act and do not substantially alter the effect on small 
entities. Therefore we have not prepared a regulatory flexibility 
analysis.

Paperwork Reduction Act

    These proposed regulations impose no new reporting or recordkeeping 
requirements requiring OMB clearance.

(Catalog of Federal Domestic Assistance Program Nos. 96.001, Social 
Security--Disability Insurance; 96.002, Social Security--Retirement 
Insurance; 96.003, Social Security--Survivors Insurance; 96.006, 
Supplemental Security Income; 96.020, Special Benefits for Certain 
World War II Veterans)

List of Subjects in 20 CFR Part 498

    Civil monetary penalties for material false statements, withholding 
disclosures, misuse of symbols and misleading advertising.

    Dated: December 9, 2004.
Patrick P. O'Carroll,
Inspector General, Social Security Administration.
    For the reasons set out in the preamble, we propose to amend part 
498 of chapter III of title 20 of the Code of Federal Regulations as 
follows:

[[Page 14606]]

PART 498--CIVIL MONETARY PENALTIES, ASSESSMENTS AND RECOMMENDED 
EXCLUSIONS

    1. The authority citation for part 498 continues to read as 
follows:

    Authority: Secs. 702(a)(5), 1129 and 1140 of the Social Security 
Act (42 U.S.C. 902(a)(5), 1320a-8 and 1320b-10).

    2. Amend Sec.  498.100 by redesignating paragraph (b)(2) as 
paragraph (b)(3) and adding a new paragraph (b)(2) to read as follows:


Sec.  498.100  Basis and purpose.

* * * * *
    (b) * * *
    (2) Convert payments received under title II, VIII, or XVI, while 
acting in the capacity of a representative payee, to a use that such 
person knew or should have known was other than for the use and benefit 
of the beneficiary; or
* * * * *
    3. Amend Sec.  498.101 by adding to the definition for ``Material 
fact,'' the words ``title VIII or'' before the words ``title XVI'' and 
by adding the new definition for ``Otherwise withhold disclosure'' in 
alphabetical order to read as follows:


Sec.  498.101  Definitions.

* * * * *
    Otherwise withhold disclosure means the failure to come forward to 
notify the SSA of a material fact, when such person knew or should have 
known that the withheld fact was material and that such withholding was 
misleading for purposes of determining eligibility or Social Security 
benefit amount for that person or another person.
* * * * *
    4. Revise Sec.  498.102 to read as follows:


Sec.  498.102  Basis for civil monetary penalties and assessments.

    (a) The Office of the Inspector General may impose a penalty and 
assessment, as applicable, against any person who it determines in 
accordance with this part--
    (1) Has made, or caused to be made, a statement or representation 
of a material fact for use in determining any initial or continuing 
right to or amount of:
    (i) Monthly insurance benefits under title II of the Social 
Security Act; or
    (ii) Benefits or payments under title VIII or XVI of the Social 
Security Act; and
    (2)(i) Knew, or should have known, that the statement or 
representation was false or misleading, or
    (ii) Made such statement with knowing disregard for the truth; or
    (3) Omitted from a statement or representation, or otherwise 
withheld disclosure of a material fact for use in determining any 
initial or continuing right to or amount of benefits or payments, which 
the person knew or should have known was material for such use and that 
such omission or withholding was false or misleading.
    (b) The Office of the Inspector General may impose a penalty and 
assessment, as applicable, against any representative payee who 
receives a payment under title II, VIII, or XVI for the use and benefit 
of another individual, and who converts such payment, or any part 
thereof, to a use that such representative payee knew or should have 
known was other than for the use and benefit of such other individual.
    (c) The Office of the Inspector General may impose a penalty 
against any person whom it determines in accordance with this part has 
made use of certain Social Security program words, letters, symbols, or 
emblems in such a manner that the person knew or should have known 
would convey, or in a manner which reasonably could be interpreted or 
construed as conveying, the false impression that an advertisement or 
other item was authorized, approved, or endorsed by the Social Security 
Administration, or that such person had some connection with, or 
authorization from, the Social Security Administration.
    (1) Civil monetary penalties may be imposed for misuse, as set 
forth in paragraph (c) of this section, of--
    (i) The words ``Social Security,'' ``Social Security Account,'' 
``Social Security Administration,'' ``Social Security System,'' 
``Supplemental Security Income Program,'' ``Death Benefits Update,'' 
``Federal Benefit Information,'' ``Funeral Expenses,'' ``Final 
Supplemental Program,'' or any combination or variation of such words; 
or
    (ii) The letters ``SSA,'' or ``SSI,'' or any other combination or 
variation of such letters; or
    (iii) A symbol or emblem of the Social Security Administration 
(including the design of, or a reasonable facsimile of the design of, 
the Social Security card, the check used for payment of benefits under 
title II, or envelopes or other stationery used by the Social Security 
Administration), or any other combination or variation of such symbols 
or emblems.
    (2) Civil monetary penalties will not be imposed against any agency 
or instrumentality of a State, or political subdivision of a State, 
that makes use of any words, letters, symbols or emblems, of the Social 
Security Administration or instrumentality of the State or political 
subdivision.
    (d) The Office of the Inspector General may impose a penalty 
against any person who offers, for a fee, to assist an individual in 
obtaining products or services that the person knew or should have 
known that the Social Security Administration provided free of charge, 
unless:
    (1) The person provides sufficient notice that the product or 
service is available free of charge, before the service is provided to 
the individual, and:
    (i) In printed solicitations or advertisements, such notice is 
clearly and prominently placed and written in a font that is 
distinguishable from the rest of the text;
    (ii) In a broadcast or telecast such notice must be clearly 
communicated so as not to be construed as misleading or deceptive.
    (2) Paragraph (d) of this section shall not apply to offers--
    (i) To serve as a claimant representative in connection with a 
claim arising under title II, title VIII, or title XVI; or
    (ii) To prepare, or assist in the preparation of, an individual's 
plan for achieving self-support under title XVI.
    (e) The use of a disclaimer of affiliation with the United States 
Government, the Social Security Administration or its programs, or any 
other agency or instrumentality of the United States Government, will 
not be considered as a defense in determining a violation of section 
1140 of the Social Security Act.
    5. Revise Sec.  498.103 to read as follows:


Sec.  498.103  Amount of penalty.

    (a) Under Sec.  498.102(a), the Office of the Inspector General may 
impose a penalty of not more than $5,000 for each false statement or 
representation, omission, or receipt of payment or benefit while 
withholding disclosure of a material fact.
    (b) Under Sec.  498.102(b), the Office of the Inspector General may 
impose a penalty of not more than $5,000 against a representative payee 
for each time the representative payee wrongfully converts a payment or 
benefit intended for the use and benefit of another individual under 
title II, title VIII, or title XVI.
    (c) Under Sec. Sec.  498.102(c) and (d), the Office of the 
Inspector General may impose a penalty of not more than $5,000 for each 
violation resulting from the misuse of Social Security Administration 
program words, letters, symbols, or emblems, or resulting from 
insufficient notice in printed media regarding products or services 
provided free of charge by the Social Security

[[Page 14607]]

Administration. If such misuse or insufficient notice relates to a 
broadcast or telecast, the Office of the Inspector General may impose a 
penalty of not more than $25,000 for each violation.
    (d) For purposes of paragraph (c) of this section, a violation is 
defined as--
    (1) In the case of a mailed solicitation or advertisement, each 
separate piece of mail which contains one or more program words, 
letters, symbols, or emblems or insufficient notice related to a 
determination under Sec.  498.102(c); and
    (2) In the case of a broadcast or telecast, each airing of a single 
commercial or solicitation related to a determination under Sec.  
498.102(c).
    6. Revise Sec.  498.104 to read as follows:


Sec.  498.104  Amount of assessment.

    A person subject to a penalty determined under Sec.  498.102(a) and 
(b) may be subject, in addition, to an assessment of not more than 
twice the amount of benefits or payments paid as a result of the 
statement, representation, omission, withheld disclosure of a material 
fact, or conversion which was the basis for the penalty. An assessment 
is in lieu of damages sustained by the United States because of such 
statement, representation, omission, withheld disclosure, or 
conversion, as referred to in Sec.  498.102(a) and (b).
    7. Amend Sec.  498.106 by revising paragraphs (a) introductory 
text, (a)(1), and (b) introductory text to read as follows:


Sec.  498.106  Determinations regarding the amount or scope of 
penalties and assessments.

    (a) In determining the amount or scope of any penalty and 
assessment, as applicable, in accordance with Sec. Sec.  498.103(a) and 
(b) and 498.104, the Office of the Inspector General will take into 
account:
    (1) The nature of the statements, representations, or actions 
referred to in Sec.  498.102(a) and (b) and the circumstances under 
which they occurred;
* * * * *
    (b) In determining the amount of any penalty in accordance with 
Sec.  498.103(c), the Office of the Inspector General will take into 
account--
* * * * *
    8. Amend Sec.  498.109 by revising paragraph (a)(2) to read as 
follows:


Sec.  498.109  Notice of proposed determination.

    (a) * * *
    (2) A description of the false statements, representations, or 
other actions (as described in Sec.  498.102(a) and (b)), and 
incidents, as applicable, with respect to which the penalty and 
assessment, as applicable, are proposed;
* * * * *
    9. Amend Sec.  498.114 by revising paragraph (a) to read as 
follows:


Sec.  498.114  Collateral estoppel.

* * * * *
    (a) Is against a person who has been convicted (whether upon a 
verdict after trial or upon a plea of guilty or nolo contendere) of a 
Federal or State crime; and
* * * * *
    10. Amend Sec.  498.128 by revising paragraphs (b), (c)(1), and 
(d)(1) to read as follows:


Sec.  498.128  Collection of penalty and assessment.

* * * * *
    (b) In cases brought under section 1129 of the Social Security Act, 
a penalty and assessment, as applicable, imposed under this part may be 
compromised by the Commissioner or his or her designee and may be 
recovered in a civil action brought in the United States District Court 
for the district where the violation occurred, or where the respondent 
resides.
    (c) * * *
    (1) Violation referred to in Sec.  498.102(c) and (d) occurred; or
* * * * *
    (d) * * *
    (1) Monthly title II, title VIII, or title XVI payments, 
notwithstanding section 207 of the Social Security Act as made 
applicable to title XVI by section 1631(d)(1) of the Social Security 
Act;
* * * * *
[FR Doc. 05-5717 Filed 3-22-05; 8:45 am]
BILLING CODE 4191-02-P