Title II — Improving Payee Selection and Quality

115th Congress · Approved Apr 13, 2018 · 132 Stat. 1257

TITLE II Improving Payee Selection and Quality

SEC. 201. Advance Designation of Representative Payees.

(a)

In General.— Section 205(j)(1) of the Social Security Act (42 U.S.C. 405(j)(1)) is amended by adding at the end the following:

“(C)

(i) An individual who is entitled to or is an applicant for a benefit under this title, title VIII, or title XVI, who has attained 18 years of age or is an emancipated minor, may, at any time, designate one or more other individuals to serve as a representative payee for such individual in the event that the Commissioner of Social Security determines under subparagraph (A) that the interest of such individual would be served by certification for payment of such benefits to which the individual is entitled to a representative payee. If the Commissioner of Social Security makes such a determination with respect to such individual at any time after such designation has been made, the Commissioner shall—

“(I) certify payment of such benefits to the designated individual, subject to the requirements of paragraph (2); or

“(II) if the Commissioner determines that certification for payment of such benefits to the designated individual would not satisfy the requirements of paragraph (2), that the designated individual is unwilling or unable to serve as representative payee, or that other good cause exists, certify payment of such benefits to another individual or organization, in accordance with paragraph (1).

“(ii) An organization may not be designated to serve as a representative payee under this subparagraph.”

(b)

Effective Date.— The amendment made by subsection (a) shall take effect on the date that is 2 years after the date of the enactment of this section.

(c)

Regulations.— Not later than 18 months after the date of the enactment of this section, the Commissioner of Social Security shall promulgate regulations specifying the information an individual is required to provide to the Commissioner in order to designate another individual to serve as the individual’s representative payee under section 205(j)(1)(C) of the Social Security Act (as added by subsection (a)).

(d)

Notification to Beneficiaries.— Not later than January 1, 2020, and annually thereafter, the Commissioner of Social Security shall notify each individual entitled to a benefit under title II, VIII, or XVI of the Social Security Act of the name of any individual designated to serve as the individual’s representative payee under section 205(j)(1)(C) of such Act (as added by subsection (a)).

SEC. 202. Prohibition on Individuals Convicted of Certain Crimes Serving as Representative Payees.

(a)

Amendments to Title II.— Section 205(j)(2) of the Social Security Act (42 U.S.C. 405(j)(2)) is amended—

(1)

in subparagraph (B)—

(A)

in clause (i)—

(i)

in subclause (V), by striking “ and” at the end;

(ii)

in subclause (VI), by striking the period and inserting “ , and”; and

(iii)

by adding at the end the following:

“(VII) determine whether such person has been convicted (and not subsequently exonerated), under Federal or State law, of a felony provided under clause (iv), or of an attempt or a conspiracy to commit such a felony.”

; and

(B)

by adding at the end the following:

“(iv) The felony crimes provided under this clause, whether an offense under State or Federal law, are the following:

“(I) Human trafficking, including as prohibited under sections 1590 and 1591 of title 18, United States Code.

“(II) False imprisonment, including as prohibited under section 1201 of title 18, United States Code.

“(III) Kidnapping, including as prohibited under section 1201 of title 18, United States Code.

“(IV) Rape and sexual assault, including as prohibited under sections 2241, 2242, 2243, and 2244 of title 18, United States Code.

“(V) First-degree homicide, including as prohibited under section 1111 of title 18, United States Code.

“(VI) Robbery, including as prohibited under section 2111 of title 18, United States Code.

“(VII) Fraud to obtain access to government assistance, including as prohibited under sections 287, 1001, and 1343 of title 18, United States Code.

“(VIII) Fraud by scheme, including as prohibited under section 1343 of title 18, United States Code.

“(IX) Theft of government funds or property, including as prohibited under section 641 of title 18, United States Code.

“(X) Abuse or neglect, including as prohibited under sections 111, 113, 114, 115, 116, or 117 of title 18, United States Code.

“(XI) Forgery, including as prohibited under section 642 and chapter 25 (except section 512) of title 18, United States Code.

“(XII) Identity theft or identity fraud, including as prohibited under sections 1028 and 1028A of title 18, United States Code.

“(v)

(I) For the purpose of carrying out the activities required under subparagraph (B)(i) as part of the investigation under subparagraph (A)(i), the Commissioner may conduct a background check of any individual seeking to serve as a representative payee under this subsection and may disqualify from service as a representative payee any such individual who fails to grant permission for the Commissioner to conduct such a background check.

“(II) The Commissioner may revoke certification of payment of benefits under this subsection to any individual serving as a representative payee on or after January 1, 2019 who fails to grant permission for the Commissioner to conduct such a background check.”

; and

(2)

in subparagraph (C)—

(A)

in clause (i)—

(i)

in subclause (IV), by striking “ or” at the end;

(ii)

in subclause (V), by striking the period at the end and inserting “ , or”; and

(iii)

by adding at the end the following:

“(VI) except as provided in clause (vi), such person has previously been convicted (and not subsequently exonerated) as described in subparagraph (B)(i)(VII).”

; and

(B)

by adding at the end the following:

“(vi)

(I) With respect to any person described in subclause (II)—

“(aa) subparagraph (B)(i)(VII) shall not apply; and

“(bb) the Commissioner may grant an exemption from the provisions of clause (i)(VI) if the Commissioner determines that such exemption is in the best interest of the individual entitled to benefits.

“(II) A person is described in this subclause if the person—

“(aa) is the custodial parent of a minor child for whom the person applies to serve;

“(bb) is the custodial spouse of the beneficiary for whom the person applies to serve;

“(cc) is the custodial parent of a beneficiary who is under a disability (as defined in section 223(d)) which began before the beneficiary attained the age of 22, for whom the person applies to serve;

“(dd) is the custodial court appointed guardian of the beneficiary for whom the person applies to serve;

“(ee) is the custodial grandparent of a minor grandchild for whom the person applies to serve;

“(ff) is the parent who was previously representative payee for his or her minor child who has since turned 18 and continues to be eligible for such benefit; or

“(gg) received a presidential or gubernatorial pardon for the relevant conviction.”

(b)

Amendments to Title VIII.— Section 807 of the Social Security Act (42 U.S.C. 1007) is amended—

(1)

in subsection (b)—

(A)

in paragraph (2)—

(i)

in subparagraph (E), by striking “ and” at the end;

(ii)

in subparagraph (F), by striking the period and inserting “ , and”; and

(iii)

by adding at the end the following:

“(G) determine whether such person has been convicted (and not subsequently exonerated), under Federal or State law, of a felony provided under paragraph (4), or of an attempt or a conspiracy to commit such a felony.”

; and

(B)

by adding at the end the following:

“(4) The felony crimes provided under this paragraph, whether an offense under State or Federal law, are the following:

“(A) Human trafficking, including as prohibited under sections 1590 and 1591 of title 18, United States Code.

“(B) False imprisonment, including as prohibited under section 1201 of title 18, United States Code.

“(C) Kidnapping, including as prohibited under section 1201 of title 18, United States Code.

“(D) Rape and sexual assault, including as prohibited under sections 2241, 2242, 2243, and 2244 of title 18, United States Code.

“(E) First-degree homicide, including as prohibited under section 1111 of title 18, United States Code.

“(F) Robbery, including as prohibited under section 2111 of title 18, United States Code.

“(G) Fraud to obtain access to government assistance, including as prohibited under sections 287, 1001, and 1343 of title 18, United States Code.

“(H) Fraud by scheme, including as prohibited under section 1343 of title 18, United States Code.

“(I) Theft of government funds or property, including as prohibited under section 641 of title 18, United States Code.

“(J) Abuse or neglect, including as prohibited under sections 111, 113, 114, 115, 116, or 117 of title 18, United States Code.

“(K) Forgery, including as prohibited under section 642 and chapter 25 (except section 512) of title 18, United States Code.

“(L) Identity theft or identity fraud, including as prohibited under sections 1028 and 1028A of title 18, United States Code.

“(5)

(A) For the purpose of carrying out the activities required under paragraph (2) as part of the investigation under paragraph (1)(A), the Commissioner may conduct a background check of any individual seeking to serve as a representative payee under this subsection and may disqualify from service as a representative payee any such individual who fails to grant permission for the Commissioner to conduct such a background check.

“(B) The Commissioner may revoke certification of payment of benefits under this subsection to any individual serving as a representative payee on or after January 1, 2019 who fails to grant permission for the Commissioner to conduct such a background check.”

; and

(2)

in subsection (d)—

(A)

in paragraph (1)—

(i)

in subparagraph (D), by striking “ or” at the end;

(ii)

in subparagraph (E), by striking the period at the end and inserting “ , or”; and

(iii)

by adding at the end the following:

“(F) except as provided in paragraph (2)(D), such person has previously been convicted (and not subsequently exonerated) as described in subsection (b)(2)(G).”

; and

(B)

in paragraph (2), by adding at the end the following:

“(D)

(i) With respect to any person described in clause (II)—

“(I) subsection (b)(2)(G) shall not apply; and

“(II) the Commissioner may grant an exemption from the provisions of paragraph (1)(F) if the Commissioner determines that such exemption is in the best interest of the individual entitled to benefits.

“(ii) A person is described in this clause if the person—

“(I) is the custodial spouse of the beneficiary for whom the person applies to serve;

“(II) is the custodial court appointed guardian of the beneficiary for whom the person applies to serve; or

“(III) received a presidential or gubernatorial pardon for the relevant conviction.”

(c)

Amendments to Title XVI.— Section 1631(a)(2)(B) of the Social Security Act (42 U.S.C. 1383(a)(2)(B)) is amended—

(1)

in clause (ii)—

(A)

in subclause (V), by striking “ and” at the end;

(B)

in subclause (VI), by striking the period and inserting “ , and”; and

(C)

by adding at the end the following:

“(VII) determine whether such person has been convicted (and not subsequently exonerated), under Federal or State law, of a felony provided under clause (xv), or of an attempt or a conspiracy to commit such a felony.”

(2)

in clause (iii)—

(A)

in subclause (IV), by striking “ or” at the end;

(B)

in subclause (V), by striking the period at the end and inserting “ , or”; and

(C)

by adding at the end the following:

“(VI) except as provided in clause (xvii), such person has previously been convicted (and not subsequently exonerated) as described in clause (ii)(VII).”

; and

(3)

by adding at the end the following:

“(xv) The felony crimes provided under this clause, whether an offense under State or Federal law, are the following:

“(I) Human trafficking, including as prohibited under sections 1590 and 1591 of title 18, United States Code.

“(II) False imprisonment, including as prohibited under section 1201 of title 18, United States Code.

“(III) Kidnapping, including as prohibited under section 1201 of title 18, United States Code.

“(IV) Rape and sexual assault, including as prohibited under sections 2241, 2242, 2243, and 2244 of title 18, United States Code.

“(V) First-degree homicide, including as prohibited under section 1111 of title 18, United States Code.

“(VI) Robbery, including as prohibited under section 2111 of title 18, United States Code.

“(VII) Fraud to obtain access to government assistance, including as prohibited under sections 287, 1001, and 1343 of title 18, United States Code.

“(VIII) Fraud by scheme, including as prohibited under section 1343 of title 18, United States Code.

“(IX) Theft of government funds or property, including as prohibited under section 641 of title 18, United States Code.

“(X) Abuse or neglect, including as prohibited under sections 111, 113, 114, 115, 116, or 117 of title 18, United States Code.

“(XI) Forgery, including as prohibited under section 642 and chapter 25 (except section 512) of title 18, United States Code.

“(XII) Identity theft or identity fraud, including as prohibited under sections 1028 and 1028A of title 18, United States Code.

“(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.

“(xvii)

(I) With respect to any person described in subclause (II)—

“(aa) clause (ii)(VII) shall not apply; and

“(bb) the Commissioner may grant an exemption from the provisions of clause (iii)(VI) if the Commissioner determines that such exemption is in the best interest of the individual entitled to benefits.

“(II) A person is described in this subclause if the person—

“(aa) is the custodial parent of a minor child for whom the person applies to serve;

“(bb) is the custodial spouse of the beneficiary for whom the person applies to serve;

“(cc) is the custodial parent of a beneficiary who is under a disability which began before the beneficiary attained the age of 22, for whom the person applies to serve;

“(dd) is the custodial court appointed guardian of the beneficiary for whom the person applies to serve;

“(ee) is the custodial grandparent of a minor grandchild for whom the person applies to serve;

“(ff) is the parent who was previously representative payee for his or her minor child who has since turned 18 and continues to be eligible for such benefit; or

“(gg) received a presidential or gubernatorial pardon for the relevant conviction.”

(d)

Application to New Appointments.— Subject to subsection (e), the amendments made by subsections (a), (b), and (c) shall apply with respect to any individual appointed to serve as a representative payee pursuant to section 205(j), 807, or 1631(a)(2) of the Social Security Act on or after January 1, 2019.

(e)

Application to Prior Appointments.—

(1)

In general.— Not later than January 1, 2024, the Commissioner of Social Security shall conduct a review of each individual serving as a representative payee pursuant to 205(j), 807, or 1631(a)(2) of the Social Security Act, to determine whether such individual has been convicted of a felony as described in section 205(j)(2)(B)(i)(VII), 807(b)(2)(G), or 1631(a)(2)(B)(ii)(VII), respectively (as such provisions are added by this section). Except as provided in section 205(j)(2)(C)(vi), 807(d)(2)(D), or 1631(a)(2)(B)(xvii) (as so added), any individual determined by the Commissioner to have been so convicted may not serve as a representative payee on or after the date of such determination.

(2)

Priority.— In conducting reviews under paragraph (1), the Commissioner shall prioritize reviews of the following categories of individuals, in the following order:

(A)

An individual serving as representative payee for 15 or more individuals.

(B)

An individual serving as representative payee for an individual who is not related to the representative payee.

(C)

An individual serving as representative payee for an individual who has attained the age of 18 and is not the spouse of the representative payee.

(f)

Periodic Review.— Not later than 1 year after the date of enactment of this section, the Commissioner of Social Security shall issue regulations to establish a process for reviewing each individual serving as a representative payee pursuant to section 205(j), 807, or 1631(a)(2) of the Social Security Act (other than individuals with respect to whom an exemption has been granted under section 205(j)(2)(C)(vi), 807(d)(2)(D), or 1631(a)(2)(B)(xvii)) not less than once every 5 years to determine whether any such individual has been convicted of a felony as described in subsection (e)(1) of this section.

SEC. 203. Prohibition on Individuals with Representative Payees Serving as Representative Payees.

(a)

Amendment to Title II.— Section 205(j)(2)(C)(i) of the Social Security Act (42 U.S.C. 405(j)(2)(C)(i)), as amended by section 202(a)(2), is further amended—

(1)

in subclause (V), by striking “ or” at the end;

(2)

in subclause (VI), by striking the period and inserting “ , or”; and

(3)

by adding at the end the following:

“(VII) such person’s benefits under this title, title VIII, or title XVI are certified for payment to a representative payee during the period for which the individual’s benefits would be certified for payment to another person.”

(b)

Amendment to Title VIII.— Section 807(d)(1) of the Social Security Act (42 U.S.C. 1007(d)(1)), as amended by section 202(b)(2), is further amended—

(1)

in subparagraph (E), by striking “ or” at the end;

(2)

in subparagraph (F), by striking the period and inserting “ , or”; and

(3)

by adding at the end the following:

“(G) such person’s benefits under this title, title II, or title XVI are certified for payment to a representative payee during the period for which the individual’s benefits would be certified for payment to another person.”

(c)

Amendment to Title XVI.— Section 1631(a)(2)(B)(iii) of the Social Security Act (42 U.S.C. 1383(a)(2)(B)(iii)), as amended by section 202(c)(2), is further amended—

(1)

in subclause (V), by striking “ or” at the end;

(2)

in subclause (VI), by striking the period and inserting “ , or”; and

(3)

by adding at the end the following:

“(VII) such person’s benefits under this title, title II, or title VIII are certified for payment to a representative payee during the period for which the individual’s benefits would be certified for payment to another person.”

(d)

Effective Date.—

(1)

New appointments.— Subject to paragraph (2), the amendments made by this section shall apply with respect to any individual appointed to serve as a representative payee under title II, title VIII, or title XVI of the Social Security Act on or after January 1, 2019.

(2)

Prior appointments.— With respect to individuals serving as a representative payee whose benefits under this title, title VIII, or title XVI are certified for payment to another representative payee as of January 1, 2019, the Commissioner shall take any steps necessary to terminate such individual’s service as a representative payee as soon as possible, but no later than January 1, 2024.

SEC. 204. Reassessment of Payee Selection and Replacement Policies.

(a)

In General.— The Commissioner of Social Security shall conduct, with opportunity for public comment, a review and reassessment of—

(1)

the appropriateness of its order of preference for selecting representative payees, including payees who may be creditors of the beneficiary or who are private, for-profit institutions; and

(2)

the effectiveness of its policy and operational procedures in properly determining when to change a representative payee, including—

(A)

from a payee that has a higher order of preference (such as a family member) to a payee that has a lower order of preference (such as a creditor); or

(B)

when a request to change payees arises from someone other than the beneficiary.

(b)

Report.— Not later than 18 months after the date of the enactment of this Act, the Commissioner of Social Security shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate and make publicly available a report on the results of the review and reassessment under subsection (a).

Title II — Improving Payee Selection and Quality