    [United States Statutes at Large, Volume 132, 115th Congress, 2nd Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    Public Law 115-165
    115th Congress

    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--Intergovernmental relations.
    Native
    Americans.
    ``(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

    [[Page 1258]]

    ``(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.

    [[Page 1259]]

    ``(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.--

    [[Page 1260]]

    (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

    [[Page 1261]]

    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

    [[Page 1262]]

    ``(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

    [[Page 1263]]

    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

    [[Page 1264]]

    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;

    [[Page 1265]]

    ``(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

    [[Page 1266]]

    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)).

    [[Page 1267]]

    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

    [[Page 1268]]

    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.

    [[Page 1269]]

    ``(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

    [[Page 1270]]

    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.

    [[Page 1271]]

    ``(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

    [[Page 1272]]

    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

    [[Page 1273]]

    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).

    Approved April 13, 2018.

    LEGISLATIVE HISTORY--H.R. 4547:
    ---------------------------------------------------------------------------

    CONGRESSIONAL RECORD, Vol. 164 (2018):
    Feb. 5, considered and passed House.
    Mar. 22, considered and passed Senate.