[115th Congress Public Law 165]
[From the U.S. Government Publishing Office]
[[Page 132 STAT. 1257]]
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. <<NOTE: Apr. 13,
2018 - [H.R. 4547]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Strengthening
Protections for Social Security Beneficiaries Act of 2018.>>
SECTION 1. <<NOTE: 42 USC 1305 note.>> 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. <<NOTE: Grants. Reviews.>> 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) <<NOTE: >> 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) <<NOTE: Consultation.>> 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 132 STAT. 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) <<NOTE: Plans.>> develop corrective action plans to
assist representative payees in conforming to requirements
specified by the Commissioner;
``(IV) <<NOTE: Reports.>> submit a report to the
Commissioner on each completed review containing such
information as the Commissioner shall require; and
``(V) <<NOTE: Assessments.>> 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) <<NOTE: Territories.>> 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) <<NOTE: Time periods.>> 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 132 STAT. 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) <<NOTE: Definition.>> 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) <<NOTE: Effective date.>> 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) <<NOTE: Definitions.>> 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) <<NOTE: 42 USC 405 note.>> Availability of Grant Funds.--
[[Page 132 STAT. 1260]]
(1) <<NOTE: Award dates. Reimbursement. Time period.>>
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) <<NOTE: Procedures. Determination.>> 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). <<NOTE: Regulations.>> 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) <<NOTE: Procedures. Determination.>> 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 132 STAT. 1261]]
provided in subparagraph (A). <<NOTE: Regulations.>> 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) <<NOTE: Procedures. Determination.>> 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) <<NOTE: 42 USC 405 note.>> 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) <<NOTE: Contracts. Plan. Records.>> 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) <<NOTE: Definitions.>> 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 132 STAT. 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) <<NOTE: Applicability. Time period. 42 USC 405 note.>>
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) <<NOTE: Plan. Determination. Time period.>>
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 132 STAT. 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) <<NOTE: Study.>> 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) <<NOTE: Assessment.>> 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) <<NOTE: Contracts.>> 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) <<NOTE: Analysis.>> 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) <<NOTE: Public information.>> 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 132 STAT. 1264]]
of payments to, or recovery by the United States from, such individual.
``(B) <<NOTE: Definition.>> 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) <<NOTE: Definition.>> 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) <<NOTE: Applicability. 42 USC 404 note.>> 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 132 STAT. 1265]]
``(v) <<NOTE: Determination.>> 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) <<NOTE: Study.>> 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) <<NOTE: Study.>> conduct a study on the changes made by
the amendments made by section 201 of the Strengthening
Protections
[[Page 132 STAT. 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) <<NOTE: Determinations. Certifications.>> 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) <<NOTE: 42 USC 405 note.>> 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) <<NOTE: Deadline. 42 USC 405 note.>> 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) <<NOTE: Deadline. 42 USC 405 note.>> 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 132 STAT. 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) <<NOTE: Determinations.>> 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) <<NOTE: Certification. Effective date.>> The Commissioner
may revoke certification of payment of benefits under this subsection to
any individual serving as a
[[Page 132 STAT. 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) <<NOTE: Exemption. Determination.>> 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) <<NOTE: Determination.>> 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 132 STAT. 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) <<NOTE: Certification. Effective date.>> 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) <<NOTE: Exemption. Determination.>> the Commissioner may
grant an exemption from the provisions of paragraph (1)(F) if the
Commissioner determines that such
[[Page 132 STAT. 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:
`` <<NOTE: Determination.>> (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 132 STAT. 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) <<NOTE: Certification. Effective date.>> 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) <<NOTE: Exemption. Determination.>> 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) <<NOTE: Effective date. 42 USC 405 note.>> 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) <<NOTE: 42 USC 405 note.>> Application to Prior Appointments.--
(1) <<NOTE: Deadline. Review. Determination.>> 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). <<NOTE: Effective date.>> 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 132 STAT. 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) <<NOTE: Deadline. Regulations. Time period. Determination. 42
USC 405 note.>> 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) <<NOTE: Certification.>> 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) <<NOTE: Certification.>> 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) <<NOTE: Certification.>> such person's benefits
under this title, title II, or title VIII are certified for
payment to a representative payee
[[Page 132 STAT. 1273]]
during the period for which the individual's benefits would be
certified for payment to another person.''.
(d) <<NOTE: 42 USC 405 note.>> Effective Date.--
(1) <<NOTE: Applicability>> 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) <<NOTE: Certification. Termination date.>> 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) <<NOTE: Public comment. Review.>> 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:
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CONGRESSIONAL RECORD, Vol. 164 (2018):
Feb. 5, considered and passed House.
Mar. 22, considered and passed Senate.
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