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106th Congress                                            Rept. 106-996
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 1

======================================================================



 
  SOCIAL SECURITY NUMBER PRIVACY AND IDENTITY THEFT PREVENTION ACT OF 
                                  2000

                                _______
                                

                October 24, 2000.--Ordered to be printed

                                _______
                                

    Mr. Archer, from the Committee on Ways and Means, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 4857]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Ways and Means, to whom was referred the 
bill (H.R. 4857) to amend the Social Security Act to enhance 
privacy protections for individuals, to prevent fraudulent 
misuse of the Social Security account number, and to provide 
additional safeguards for Social Security and Supplemental 
Security Income beneficiaries with representative payees, and 
for other purposes, having considered the same, report 
favorably thereon with an amendment and recommend that the bill 
as amended do pass.

                                CONTENTS

                                                                   Page
 I. Introduction.....................................................22
        A. Purpose and Summary...................................    22
        B. Background and Need for Legislation...................    23
        C. Legislative History...................................    24
II. Explanation of the Bill..........................................24
        A. Short Title and Findings..............................    24
        B. Provisions Relating to the Social Security Account 
            Number in the Public Sector..........................    24
            1. Restrictions on sale and display of Social 
                Security Account Numbers by governmental agencies    24
            2. Independent verification of birth records provided 
                in support of applications for Social Security 
                Account Numbers..................................    26
            3. Report by General Accounting Office on use by 
                governmental agencies as personal identification 
                numbers..........................................    27
        C. Provisions Relating to the Social Security Account 
            Number in the Private Sector.........................    28
            1. Regulation of the sale and purchase of the Social 
                Security Account Number in the private sector....    28
            2. Refusal to do business without receipt of Social 
                Security Account Number considered unfair or 
                deceptive act or practice........................    29
            3. Confidential treatment of credit header 
                information......................................    29
        D. Enforcement...........................................    30
            1. Criminal and civil monetary penalties and orders 
                of restitution...................................    30
            2. Law enforcement authority for the Office of the 
                Inspector General of the Social Security 
                Administration...................................    31
        E. Provisions Relating to Representative Payees..........    32
            1. Authority to reissue benefits misused by 
                Organizational Representative Payees.............    32
            2. Oversight of Representative Payees................    33
            3. Disqualification from service as Representative 
                Payee upon conviction of offenses resulting in 
                imprisonment for more than 1 year................    34
            4. Fee forfeiture in case of benefit misuse by 
                Representative Payees............................    35
            5. Liability of Representative Payees for misused 
                benefits.........................................    35
            6. Extension of Civil Monetary Penalty Authority with 
                respect to Representative Payees.................    36
            7. Authority to redirect delivery of benefit payments 
                when a Representative Payee fails to provide 
                required accounting..............................    36
        F. Miscellaneous and Technical Amendments................    37
            1. Technical correction relating to responsible 
                agency head......................................    37
            2. Technical correction relating to domestic 
                employment.......................................    38
            3. Technical correction of outdated references.......    38
            4. Technical corrections relating to retirement 
                benefits of ministers............................    39
            5. Requirements relating to offers to provide for a 
                fee a product or service available without charge 
                from the Social Security Administration..........    39
            6. Funding of demonstration projects providing for 
                reductions in Disability Insurance Benefits based 
                on earnings......................................    40
            7. Optional Federal administration of State 
                recognition payments.............................    40
            8. Military Wage Credits.............................    41
III.Votes of the Committee...........................................42

IV. Budget Effects of the Bill.......................................42
        A. Committee Estimate of Budgetary Effects...............    42
        B. Statement Regarding New Budget Authority and Tax 
            Expenditures.........................................    42
        C. Cost Estimate Prepared by the Congressional Budget 
            Office...............................................    42
 V. Other Matters to be Discussed Under the Rules of the House.......50
        A. Committee Oversight Findings and Recommendations......    50
        B. Summary of Findings and Recommendations of the 
            Committee on Government Reform.......................    50
        C. Constitutional Authority Statement....................    50
        D. Information Relating to Unfunded Mandates.............    50
VI. Changes in Existing Law Made by the Bill as Reported.............51

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Social Security 
Number Privacy and Identity Theft Prevention Act of 2000''.
  (b) Table of Contents.--The table of contents is as follows:

Sec. 1. Short title and table of contents.
Sec. 2. Findings.

 TITLE I--PROVISIONS RELATING TO THE SOCIAL SECURITY ACCOUNT NUMBER IN 
                           THE PUBLIC SECTOR

Sec. 101. Restrictions on the sale of social security account numbers 
by governmental agencies.
Sec. 102. Prohibition of public access to social security account 
numbers possessed by governmental agencies.
Sec. 103. Prohibition of display of social security account number on 
checks issued for payment by governmental agencies.
Sec. 104. Prohibition of appearance of social security account numbers 
on driver's licenses or motor vehicle registrations.
Sec. 105. Prohibition of display by governmental agencies of personal 
identification numbers.
Sec. 106. Prohibition of inmate access to social security account 
numbers.
Sec. 107. Independent verification of birth records provided in support 
of applications for social security account numbers.
Sec. 108. Report by General Accounting Office on use by governmental 
agencies as personal identification numbers.

TITLE II--PROVISIONS RELATING TO THE SOCIAL SECURITY ACCOUNT NUMBER IN 
                           THE PRIVATE SECTOR

Sec. 201. Regulation of the sale and purchase of the social security 
account number in the private sector.
Sec. 202. Refusal to do business without receipt of social security 
account number considered unfair or deceptive act or practice.
Sec. 203. Confidential treatment of credit header information.

                         TITLE III--ENFORCEMENT

Sec. 301. New criminal penalties for misuse of social security account 
numbers.
Sec. 302. New criminal penalty for sale or purchase of social security 
account numbers.
Sec. 303. Extension of civil monetary penalty authority.
Sec. 304. Authority for judicial orders of restitution.
Sec. 305. Law enforcement authority for the Office of the Inspector 
General of the Social Security Administration.

         TITLE IV--PROVISIONS RELATING TO REPRESENTATIVE PAYEES

Sec. 401. Authority to reissue benefits misused by organizational 
representative payees.
Sec. 402. Oversight of representative payees.
Sec. 403. Disqualification from service as representative payee upon 
conviction of offenses resulting in imprisonment for more than 1 year.
Sec. 404. Fee forfeiture in case of benefit misuse by representative 
payees.
Sec. 405. Liability of representative payees for misused benefits.
Sec. 406. Extension of civil monetary penalty authority with respect to 
representative payees.
Sec. 407. Authority to redirect delivery of benefit payments when a 
representative payee fails to provide required accounting.

            TITLE V--MISCELLANEOUS AND TECHNICAL AMENDMENTS

Sec. 501. Technical correction relating to responsible agency head.
Sec. 502. Technical correction relating to domestic employment.
Sec. 503. Technical corrections of outdated references.
Sec. 504. Technical correction relating to retirement benefits of 
ministers.
Sec. 505. Requirements relating to offers to provide for a fee a 
product or service available without charge from the Social Security 
Administration.
Sec. 506. Funding of demonstration projects providing for reductions in 
disability insurance benefits based on earnings.
Sec. 507. Optional Federal administration of State recognition 
payments.
Sec. 508. Military wage credits.

SEC. 2. FINDINGS.

  The Congress makes the following findings:
          (1) The inappropriate sale or purchase of social security 
        account numbers is a significant factor in a growing range of 
        illegal activities, including fraud, identity theft, and, in 
        some cases, stalking and other violent crimes.
          (2) While financial institutions, health care providers, and 
        other entities have often used social security account numbers 
        to confirm the identity of an individual, the sale or purchase 
        of these numbers often facilitates the commission of criminal 
        activities, and also can result in serious invasions of 
        individual privacy.
          (3) The Federal Government requires virtually every 
        individual in the United States to obtain and maintain a social 
        security account number in order to pay taxes, to qualify for 
        Social Security benefits, or to seek employment. An unintended 
        consequence of these requirements is that social security 
        account numbers have become tools that can be used to 
        facilitate crime, fraud, and invasions of the privacy of the 
        individuals to whom the numbers are assigned. Because the 
        Federal Government created and maintains this system, and 
        because the Federal Government does not permit persons to 
        exempt themselves from those requirements, it is appropriate 
        for the Government to take steps to stem the abuse of this 
        system.
          (4) A social security account number is simply a sequence of 
        numbers. In no meaningful sense can the number itself impart 
        knowledge or ideas. Persons do not sell or transfer such 
        numbers in order to convey any particularized message, nor to 
        express to the purchaser any ideas, knowledge, or thoughts.
          (5) A social security account number does not contain, 
        reflect, or convey any publicly significant information or 
        concern any public issue. The sale of such numbers in no way 
        facilitates uninhibited, robust and wide-open public debate; 
        and restrictions on such sale would not affect public debate.
          (6) No one should seek to profit from the sale of social 
        security account numbers in circumstances that create a 
        substantial risk of physical, emotional, or financial harm to 
        the individuals to whom those numbers are assigned.
          (7) Consequently, Congress should enact legislation that will 
        offer individuals assigned such numbers necessary protection 
        from the sale and purchase of social security account numbers 
        in circumstances that might facilitate unlawful conduct or that 
        might otherwise likely result in unfair or deceptive practices.

 TITLE I--PROVISIONS RELATING TO THE SOCIAL SECURITY ACCOUNT NUMBER IN 
                           THE PUBLIC SECTOR

SEC. 101. RESTRICTIONS ON THE SALE OF SOCIAL SECURITY ACCOUNT NUMBERS 
                    BY GOVERNMENTAL AGENCIES.

  (a) In General.--Section 205(c)(2)(C) of the Social Security Act (42 
U.S.C. 405(c)(2)(C)) is amended by adding at the end the following new 
clause:
  ``(x) No executive, legislative, or judicial agency or 
instrumentality of the Federal Government or of a State or a political 
subdivision thereof (or person acting as an agent of such an agency or 
instrumentality) in possession of any individual's social security 
account number may accept an item of material value in exchange for 
such number, or any derivative thereof. Notwithstanding the preceding 
sentence, such number (or derivative) may be made available or 
disclosed in such an exchange in accordance with the following 
exceptions (and for no other purpose):
          ``(I) Such number (or derivative) may be disclosed in such an 
        exchange by a State department of motor vehicles as authorized 
        under subsection (b) of section 2721 of title 18, United States 
        Code, if such disclosed number (or derivative) is to be used 
        solely for the purposes permitted under paragraph (1), (6) or 
        (9) of such subsection.
          ``(II) Such number (or derivative) may be made available in 
        such an exchange to a consumer reporting agency, as defined in 
        section 603(f) of the Fair Credit Reporting Act (15 U.S.C. 
        1681a(f)), exclusively for use in accordance with such Act.
          ``(III) Such number (or derivative) may be disclosed in such 
        an exchange to the extent that is necessary or appropriate for 
        law enforcement or national security purposes, as determined 
        under regulations which shall be issued by the Attorney General 
        of the United States.
          ``(IV) Such an exchange may occur to the extent it is 
        otherwise specifically authorized by this Act.''.
  (b) Effective Date.--The amendment made by this section shall apply 
with respect to violations occurring after 3 years after the date of 
the enactment of this Act.

SEC. 102. PROHIBITION OF PUBLIC ACCESS TO SOCIAL SECURITY ACCOUNT 
                    NUMBERS POSSESSED BY GOVERNMENTAL AGENCIES.

  (a) In General.--Section 205(c)(2)(C) of the Social Security Act (42 
U.S.C. 405(c)(2)(C)) (as amended by section 101) is amended further by 
adding at the end the following new clause:
  ``(xi) No executive, legislative, or judicial agency or 
instrumentality of the Federal Government or of a State or a political 
subdivision thereof or trustee appointed in a case under title 11, 
United States Code (or person acting as an agent of such an agency or 
instrumentality or trustee), may display to the general public any 
individual's social security account number, or any derivative of such 
number. Notwithstanding the preceding sentence, such number (or 
derivative) may be so displayed in accordance with the following 
exceptions (and for no other purpose):
          ``(I) Such number (or derivative) may be so displayed to a 
        consumer reporting agency, as defined in section 603(f) of the 
        Fair Credit Reporting Act (15 U.S.C. 1681a(f)), exclusively for 
        use in accordance with such Act.
          ``(II) Such number (or derivative) may be so displayed to the 
        extent that is necessary or appropriate for law enforcement or 
        national security purposes, as determined under regulations 
        which shall be issued by the Attorney General of the United 
        States.
For purposes of this clause, the term `display to the general public' 
in connection with a social security account number, or a derivative 
thereof, means the intentional placing of such number or derivative in 
a viewable manner on an Internet site that is available to the general 
public or in any other manner intended to provide access to such number 
or derivative by the general public. Each such agency or 
instrumentality or trustee shall ensure that access to such numbers, 
and any derivative of such numbers, is restricted to persons who may 
obtain them in accordance with this clause and other applicable law.''.
  (b) Effective Date.--Agencies and instrumentalities and trustees (and 
agents thereof) shall comply with the requirements of clause (xi) of 
section 205(c)(2)(C) of the Social Security Act (added by this section) 
as soon as practicable after the date of the enactment of this Act. 
Such clause (xi) shall apply with respect to all displays originally 
occurring after 3 years after the date of the enactment of this Act.

SEC. 103. PROHIBITION OF DISPLAY OF SOCIAL SECURITY ACCOUNT NUMBER ON 
                    CHECKS ISSUED FOR PAYMENT BY GOVERNMENTAL AGENCIES.

  (a) In General.--Section 205(c)(2)(C) of the Social Security Act (42 
U.S.C. 405(c)(2)(C)) (as amended by the preceding provisions of this 
title) is amended further by adding at the end the following new 
clause:
  ``(xii) No executive, legislative, or judicial agency or 
instrumentality of the Federal Government or of a State or a political 
subdivision thereof (or person acting as an agent of such an agency or 
instrumentality) may include the social security account number of any 
individual on any check issued for any payment by the Federal 
Government, any State or political subdivision thereof, or any agency 
or instrumentality thereof or on any document attached to or 
accompanying such a check.''.
  (b) Effective Date.--The amendment made by this section shall apply 
with respect to violations occurring after 3 years after the date of 
the enactment of this Act.

SEC. 104. PROHIBITION OF APPEARANCE OF SOCIAL SECURITY ACCOUNT NUMBERS 
                    ON DRIVER'S LICENSES OR MOTOR VEHICLE 
                    REGISTRATIONS.

  (a) In General.--Section 205(c)(2)(C)(vi) of the Social Security Act 
(42 U.S.C. 405(c)(2)(C)(vi)) is amended--
          (1) by inserting ``(I)'' after ``(vi)''; and
          (2) by adding at the end the following new subclause:
  ``(II) A State or political subdivision thereof (and any person 
acting as an agent of such an agency or instrumentality), in the 
administration of any driver's license or motor vehicle registration 
law within its jurisdiction, may not disclose the social security 
account numbers issued by the Commissioner of Social Security, or any 
derivative of such numbers, on any driver's license or motor vehicle 
registration or any other document issued by such State or political 
subdivision to an individual for purposes of identification of such 
individual.''.
  (b) Effective Date.--The amendment made by this section shall apply 
with respect to licenses, registrations, and other documents issued or 
reissued after 3 years after the date of the enactment of this Act.

SEC. 105. PROHIBITION OF DISPLAY BY GOVERNMENTAL AGENCIES OF PERSONAL 
                    IDENTIFICATION NUMBERS.

  (a) In General.--Section 205(c)(2)(C) of the Social Security Act (42 
U.S.C. 405(c)(2)(C)) (as amended by the preceding provisions of this 
title) is amended further by adding at the end the following new 
clause:
  ``(xiii) No executive, legislative, or judicial agency or 
instrumentality of the Federal Government or of a State or political 
subdivision thereof (or person acting as an agent of such an agency or 
instrumentality) may display the social security account number, or any 
derivative of such number, on any card or tag that is commonly provided 
to employees for purposes of identification and that is to be 
maintained for continual, open display by the employees.''.
  (b) Effective Date.--The amendment made by this section shall apply 
with respect to violations occurring after 3 years after the date of 
the enactment of this Act.

SEC. 106. PROHIBITION OF INMATE ACCESS TO SOCIAL SECURITY ACCOUNT 
                    NUMBERS.

  (a) In General.--Section 205(c)(2)(C) of the Social Security Act (42 
U.S.C. 405(c)(2)(C)) (as amended by the preceding provisions of this 
title) is amended further by adding at the end the following new 
clause:
  ``(xiv) No executive, legislative, or judicial agency or 
instrumentality of the Federal Government or of a State or political 
subdivision thereof (or person acting as an agent of such an agency or 
instrumentality) may employ, or enter into a contract for the use or 
employment of, prisoners in any capacity that would allow such 
prisoners access to the social security account numbers of other 
individuals. For purposes of this clause, the term `prisoner' means an 
individual confined in a jail, prison, or other penal institution or 
correctional facility pursuant to such individual's conviction of a 
criminal offense.''.
  (b) Effective Date.--The amendment made by this section shall apply 
with respect to employment of prisoners, or entry into contract with 
prisoners, after 1 year after the date of the enactment of this Act.

SEC. 107. INDEPENDENT VERIFICATION OF BIRTH RECORDS PROVIDED IN SUPPORT 
                    OF APPLICATIONS FOR SOCIAL SECURITY ACCOUNT 
                    NUMBERS.

  (a) In General.--Section 205(c)(2)(B)(ii) of the Social Security Act 
(42 U.S.C. 405(c)(2)(B)(ii)) is amended by adding at the end the 
following new sentence: ``With respect to an application for a social 
security account number for an individual other than for purposes of 
enumeration at birth, the Commissioner shall require independent 
verification of any birth record provided by the applicant in support 
of the application.''.
  (b) Effective Date.--The amendment made by subsection (a) shall apply 
with respect to applications filed after 1 year after the date of the 
enactment of this Act.
  (c) Report on Enumeration of Aliens at Admission.--Not later than 1 
year after the date of the enactment of this Act, the Commissioner of 
Social Security and the Attorney General of the United States shall 
jointly submit a report detailing the progress of the Social Security 
Administration and the Immigration and Naturalization Service in 
implementing a process, at the admission of aliens to the United 
States, for enumeration of those aliens who have need of a social 
security account number. Such report shall be submitted to the 
Committee on Ways and Means and the Committee on the Judiciary of the 
House of Representatives and the Committee on Finance and the Committee 
on the Judiciary of the Senate.

SEC. 108. REPORT BY GENERAL ACCOUNTING OFFICE ON USE BY GOVERNMENTAL 
                    AGENCIES AS PERSONAL IDENTIFICATION NUMBERS.

  (a) Study.--The Comptroller General of the United States shall 
undertake a study of--
          (1) the current usage, by agencies and instrumentalities in 
        all branches of the Federal Government and by executive, 
        legislative, and judicial agencies and instrumentalities of 
        States and political subdivisions thereof, of the social 
        security account numbers of individuals, and derivatives of 
        such numbers, for purposes of identification of such 
        individuals, and
          (2) the most effective means by which any such usage 
        extending beyond the original purposes of the social security 
        account number may be minimized.
  (b) Report.--Not later than 1 year after the date of the enactment of 
this Act, the Comptroller General shall submit a report to the 
Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate setting forth the results of the 
study conducted pursuant to this section. Such report shall contain 
such recommendations, including proposals for legislative changes, as 
the Comptroller General deems appropriate.

TITLE II--PROVISIONS RELATING TO THE SOCIAL SECURITY ACCOUNT NUMBER IN 
                           THE PRIVATE SECTOR

SEC. 201. REGULATION OF THE SALE AND PURCHASE OF THE SOCIAL SECURITY 
                    ACCOUNT NUMBER IN THE PRIVATE SECTOR.

  (a) Definitions.--In this section:
          (1) Commission.--The term ``Commission'' means the Federal 
        Trade Commission.
          (2) Person.--The term ``person'' means any individual, 
        partnership, corporation, trust, estate, cooperative, 
        association, or any other entity.
          (3) Sale.--The term ``sell'' in connection with a social 
        security account number means to obtain, directly or 
        indirectly, anything of value in exchange for such number. Such 
        term does not include the submission of such number as part of 
        the process for applying for any type of Government benefits or 
        programs (such as grants or loans or welfare or other public 
        assistance programs). Such term also does not include transfers 
        of such number as part of a data matching program under the 
        Computer Matching and Privacy Protection Act and the amendments 
        made thereby and similar computer matches involving government 
        entities.
          (4) Purchase.--The term ``purchase'' in connection with a 
        social security account number means to provide, directly or 
        indirectly, anything of value in exchange for such number. Such 
        term does not include the submission of such number as part of 
        the process for applying for any type of Government benefit or 
        programs (such as grant or loan applications or welfare or 
        other public assistance programs). Such term also does not 
        include transfers of such number as part of a data matching 
        program under the Computer Matching and Privacy Protection Act 
        and the amendments made thereby and similar computer matches 
        involving government entities.
          (5) Social security account number.--The term ``social 
        security account number'' has the meaning given such term in 
        section 208 of the Social Security Act (42 U.S.C. 408).
          (6) State.--The term ``State'' means any State of the United 
        States, the District of Columbia, Puerto Rico, the Northern 
        Mariana Islands, the United States Virgin Islands, Guam, 
        American Samoa, and any territory or possession of the United 
        States.
  (b) Prohibition.--It shall be unlawful for any person to sell or 
purchase a social security account number in a manner that violates a 
regulation promulgated by the Commission under subsection (c) of this 
section.
  (c) Regulations.--
          (1) Restrictions authorized.--The Commission, after 
        consultation with the Commissioner of Social Security, the 
        Department of Justice, and other agencies as the Commission 
        deems appropriate, shall promulgate regulations restricting the 
        sale and purchase of social security account numbers and any 
        unfair or deceptive acts or practices in connection with the 
        sale and purchase of social security account numbers.
          (2) Limitations on restrictions.--In promulgating such 
        regulations, the Commission shall impose restrictions and 
        conditions on the sale and purchase of social security account 
        numbers that are no broader than necessary--
                  (A) to provide reasonable assurance that social 
                security account numbers will not be used to commit or 
                facilitate fraud, deception, or crime; and
                  (B) to prevent an undue risk of bodily, emotional, or 
                financial harm to individuals.
        For purposes of subparagraph (B), the Commission shall consider 
        the nature, likelihood, and severity of the anticipated harm; 
        the nature, likelihood, and extent of any benefits that could 
        be realized from the sale or purchase of the numbers; and any 
        other relevant factors.
          (3) Exceptions.--The regulations promulgated pursuant to 
        paragraph (1) shall include exceptions which permit the sale 
        and purchase of social security account numbers--
                  (A) to the extent necessary for law enforcement or 
                national security purposes;
                  (B) to the extent necessary for public health 
                purposes;
                  (C) to the extent necessary in emergency situations 
                to protect the health or safety of 1 or more 
                individuals;
                  (D) to the extent necessary for research conducted 
                for the purpose of advancing public knowledge, on the 
                condition that the researcher provides adequate 
                assurances that--
                          (i) the social security account numbers will 
                        not be used to harass, target, or publicly 
                        reveal information concerning any identifiable 
                        individuals;
                          (ii) information about identifiable 
                        individuals obtained from the research will not 
                        to be used to make decisions that directly 
                        affect the rights, benefits, or privileges of 
                        specific individuals; and
                          (iii) the researcher has in place appropriate 
                        safeguards to protect the privacy and 
                        confidentiality of any information about 
                        identifiable individuals;
                  (E) to the extent consistent with an individual's 
                voluntary and affirmative written consent to the sale 
                or purchase of a social security account number that 
                has been assigned to that individual; and
                  (F) under other appropriate circumstances as the 
                Commission may determine are consistent with the 
                findings in section 2 of this Act and the principles in 
                paragraph (2).
  (d) Rulemaking.--
          (1) Deadline for action.--Not later than 1 year after the 
        date of enactment of this Act, the Commission shall promulgate 
        the regulations under subsection (c) of this section, in 
        accordance with section 553 of title 5, United States Code.
          (2) Effective dates.--Subsection (b) and the regulations 
        promulgated under subsection (c) shall take effect 30 days 
        after the date on which the final regulations issued under this 
        section are published in the Federal Register.
  (e) Enforcement.--Any violation of a regulation promulgated under 
subsection (c) of this section shall be treated as a violation of a 
regulation under section 18(a)(1)(B) of the Federal Trade Commission 
Act (15 U.S.C. 57a(a)(1)(B)) regarding unfair or deceptive acts or 
practices.
  (f) Administration and Applicability of Act.--
          (1) The commission.--The Commission shall prevent any person 
        from violating this section, and any regulation promulgated 
        thereunder, in the same manner, by the same means, and with the 
        same jurisdiction, powers, and duties as though all applicable 
        terms and provisions of the Federal Trade Commission Act (15 
        U.S.C. 41 et seq.) were incorporated into and made a part of 
        this section. Any person who violates such regulation shall be 
        subject to the penalties and entitled to the privileges and 
        immunities provided in the Federal Trade Commission Act (15 
        U.S.C. 41 et seq.) as though all applicable terms and 
        provisions of the Federal Trade Commission Act (15 U.S.C. 41 et 
        seq.) were incorporated into and made a part of this section. 
        Nothing contained in this section shall be construed to limit 
        the authority of the Commission under any other provision of 
        law.
          (2) Actions by states.--
                  (A) Civil actions.--In any case in which the attorney 
                general of a State has reason to believe that an 
                interest of the residents of that State has been or is 
                threatened or adversely affected by an act or practice 
                that violates any regulation of the Commission 
                promulgated under subsection (c), the State, as parens 
                patriae, may bring a civil action on behalf of the 
                residents of the State in a district court of the 
                United States of appropriate jurisdiction, to--
                          (i) enjoin that act or practice;
                          (ii) enforce compliance with the regulation;
                          (iii) obtain damages, restitution, or other 
                        compensation on behalf of residents of the 
                        State; or
                          (iv) obtain such other legal and equitable 
                        relief as the district court may consider to be 
                        appropriate.
                Before filing an action under this subsection, the 
                attorney general of the State involved shall provide to 
                the Commission and to the Attorney General a written 
                notice of that action and a copy of the complaint for 
                that action. If the State attorney general determines 
                that it is not feasible to provide the notice described 
                in this subparagraph before the filing of the action, 
                the State attorney general shall provide the written 
                notice and the copy of the complaint to the Commission 
                and to the Attorney General as soon after the filing of 
                the complaint as practicable.
                  (B) Commission and attorney general authority.--On 
                receiving notice under subparagraph (A), the Commission 
                and the Attorney General each shall have the right--
                          (i) to move to stay the action, pending the 
                        final disposition of a pending Federal matter 
                        as described in subparagraph (C);
                          (ii) to intervene in an action under clause 
                        (i);
                          (iii) upon so intervening, to be heard on all 
                        matters arising therein; and
                          (iv) to file petitions for appeal.
                  (C) Pending criminal proceedings.--If the Attorney 
                General has instituted a criminal proceeding or the 
                Federal Trade Commission has instituted a civil action 
                for a violation of this Act or any regulations 
                thereunder, no State may, during the pendency of such 
                proceeding or action, bring an action under this 
                section against any defendant named in the criminal 
                proceeding or civil action for any violation of this 
                section that is alleged in that proceeding or action.
                  (D) Rule of construction.--For purposes of bringing 
                any civil action under subparagraph (A), nothing in 
                this Act shall be construed to prevent an attorney 
                general of a State from exercising the powers conferred 
                on the attorney general by the laws of that State to 
                conduct investigations, administer oaths and 
                affirmations, or compel the attendance of witnesses or 
                the production of documentary and other evidence.
                  (E) Venue; service of process.--Any action brought 
                under this section may be brought in any district court 
                of the United States that meets applicable requirements 
                relating to venue under section 1391 of title 28, 
                United States Code. In an action brought under this 
                section, process may be served in any district in which 
                the defendant is an inhabitant or may be found.

SEC. 202. REFUSAL TO DO BUSINESS WITHOUT RECEIPT OF SOCIAL SECURITY 
                    ACCOUNT NUMBER CONSIDERED UNFAIR OR DECEPTIVE ACT 
                    OR PRACTICE.

  Any person who refuses to do business with an individual because the 
individual will not consent to the receipt by such person of the social 
security account number of such individual shall be considered to have 
committed an unfair or deceptive act or practice in violation of 
section 5 of the Federal Trade Commission Act (15 U.S.C. 45). Action 
may be taken under such section 5 against such a person.

SEC. 203. CONFIDENTIAL TREATMENT OF CREDIT HEADER INFORMATION.

  (a) In General.--Section 603(d) of the Fair Credit Reporting Act (15 
U.S.C. 1681a(d)) is amended by inserting after the first sentence the 
following:
        ``The term also includes information regarding the social 
        security account number of the consumer or any derivative 
        thereof.''.
  (b) Effective Date.--The amendment made by this section shall take 
effect 90 days after the date of the enactment of this Act.

                         TITLE III--ENFORCEMENT

SEC. 301. NEW CRIMINAL PENALTIES FOR MISUSE OF SOCIAL SECURITY ACCOUNT 
                    NUMBERS.

  (a) In General.--Section 208(a) of the Social Security Act (42 U.S.C. 
408(a)) is amended--
          (1) in paragraph (8), by adding ``or'' at the end; and
          (2) by inserting after paragraph (8) the following new 
        paragraphs:
          ``(9) offers, for a fee, to acquire for any individual, or to 
        assist in acquiring for any individual, an additional social 
        security account number or a number that purports to be a 
        social security account number; or
          ``(10) being an officer or employee of any executive, 
        legislative, or judicial agency or instrumentality of the 
        Federal Government or of a State or political subdivision 
        thereof (or a person acting as an agent of such an agency or 
        instrumentality) in possession of any individual's social 
        security account number, or (in connection with section 
        205(c)(2)(C)(xi)) a trustee appointed in a case under title 11, 
        United States Code (or an officer or employee thereof or a 
        person acting as an agent thereof), willfully acts or fails to 
        act so as to cause a violation of clause (vi)(II), (x), (xi), 
        (xii), or (xiv) of section 205(c)(2)(C);''.
  (b) Effective Dates.--Section 208(a)(9) of the Social Security Act 
(added by subsection (a)(2)) shall apply with respect to violations 
occurring after the date of the enactment of this Act. Section 
208(a)(10) of such Act (added by subsection (a)(2)) shall apply with 
respect to violations occurring on or after the effective date 
applicable with respect to such violations under title I.

SEC. 302. NEW CRIMINAL PENALTY FOR SALE OR PURCHASE OF SOCIAL SECURITY 
                    ACCOUNT NUMBERS.

  (a) In General.--Section 208(a) of the Social Security Act (as 
amended by section 301(a)) is amended further--
          (1) in paragraph (10), by adding ``or'' at the end;
          (2) by inserting after paragraph (10) the following new 
        paragraph:
          ``(11) knowingly sells or purchases (as defined in paragraphs 
        (2) and (3) of subsection (d)) the social security account 
        number of any person;'';
          (3) in subsection (c), by striking the last sentence;
          (4) by redesignating subsection (d) as subsection (e); and
          (5) by inserting after subsection (c) the following new 
        subsection:
  ``(d)(1) For purposes of subsection (a)(7), the term `social security 
account number' means a number assigned by the Commissioner of Social 
Security under section 205(c)(2) whether or not, in actual use, such 
number is called a social security account number.
  ``(2) For purposes of subsection (a)(11), the term `sell' in 
connection with a social security account number means to obtain, 
directly or indirectly, anything of value in exchange for such number. 
Such term does not include the submission of such number as part of the 
process for applying for any type of Government benefits or programs 
(such as grants or loans or welfare or other public assistance 
programs). Such term also does not include transfers of such number as 
part of a matching program, as defined in section 552a(a)(8)(A) of 
title 5, United States Code, or any other match referred to in section 
552a(a)(8)(B) of such title.
  ``(3) For purposes of subsection (a)(11), the term `purchase' in 
connection with a social security account number means to provide, 
directly or indirectly, anything of value in exchange for such number. 
Such term does not include the submission of such number as part of the 
process for applying for any type of Government benefits or programs 
(such as grants or loans or welfare or other public assistance 
programs). Such term also does not include transfers of such number as 
part of a matching program, as defined in section 552a(a)(8)(A) of 
title 5, United States Code, or any other match referred to in section 
552a(a)(8)(B) of such title.''.
  (b) Effective Date.--The amendments made by this section shall apply 
with respect to violations occurring after the date of the enactment of 
this Act.

SEC. 303. EXTENSION OF CIVIL MONETARY PENALTY AUTHORITY.

  (a) Treatment of Withholding of Material Facts.--
          (1) Civil penalties.--Section 1129(a)(1) of the Social 
        Security Act (42 U.S.C. 1320a-8(a)(1)) is amended--
                  (A) by striking ``who'' in the first sentence and 
                inserting ``who--'';
                  (B) by striking ``makes'' in the first sentence and 
                all that follows through ``shall be subject to'' and 
                inserting the following:
          ``(A) makes, or causes to be made, a statement or 
        representation of a material fact, for use in determining any 
        initial or continuing right to or the amount of monthly 
        insurance benefits under title II or benefits or payments under 
        title VIII or XVI that the person knows or should know is false 
        or misleading,
          ``(B) makes such a statement or representation for such use 
        with knowing disregard for the truth, or
          ``(C) omits from a statement or representation for such use, 
        or otherwise withholds disclosure of, a fact which the 
        individual knows or should know is material to the 
        determination of any initial or continuing right to or the 
        amount of monthly insurance benefits under title II or benefits 
        or payments under title VIII or XVI, if the individual knows, 
        or should know, that the statement or representation with such 
        omission is false or misleading or that the withholding of such 
        disclosure is misleading,
shall be subject to'';
                  (C) by inserting ``or each receipt of such benefits 
                or payments while withholding disclosure of such fact'' 
                after ``each such statement or representation'' in the 
                first sentence;
                  (D) by inserting ``or because of such withholding of 
                disclosure of a material fact'' after ``because of such 
                statement or representation'' in the second sentence; 
                and
                  (E) by inserting ``or such a withholding of 
                disclosure'' after ``such a statement or 
                representation'' in the second sentence.
          (2) Administrative procedure for imposing penalties.--Section 
        1129A(a) of such Act (42 U.S.C. 1320a-8a(a)) is amended in the 
        first sentence--
                  (A) by striking ``who'' and inserting ``who--''; and
                  (B) by striking ``makes'' and all that follows 
                through ``shall be subject to,'' and inserting the 
                following:
          ``(1) makes, or causes to be made, a statement or 
        representation of a material fact, for use in determining any 
        initial or continuing right to or the amount of monthly 
        insurance benefits under title II or benefits or payments under 
        title VIII or XVI that the person knows or should know is false 
        or misleading,
          ``(2) makes such a statement or representation for such use 
        with knowing disregard for the truth, or
          ``(3) omits from a statement or representation for such use, 
        or otherwise withholds disclosure of, a fact which the 
        individual knows or should know is material to the 
        determination of any initial or continuing right to or the 
        amount of monthly insurance benefits under title II or benefits 
        or payments under title VIII or XVI, if the individual knows, 
        or should know, that the statement or representation with such 
        omission is false or misleading or that the withholding of such 
        disclosure is misleading,
shall be subject to,''.
  (b) Application of Civil Money Penalties to Elements of Criminal 
Violations.--Section 1129(a) of such Act (42 U.S.C. 1320a-8(a)) is 
amended further--
          (1) by redesignating paragraph (2) as paragraph (4);
          (2) by designating the last sentence of paragraph (1) as a 
        new paragraph (2), appearing after and below paragraph (1); and
          (3) by inserting after paragraph (2) (as designated under 
        paragraph (2) of this subsection) the following:
  ``(3) Any person (including an organization, agency, or other entity) 
who--
          ``(A) uses a social security account number that such person 
        knows or should know has been assigned by the Commissioner of 
        Social Security (in an exercise of authority under section 
        205(c)(2) to establish and maintain records) on the basis of 
        false information furnished to the Commissioner by any person;
          ``(B) falsely represents a number to be the social security 
        account number assigned by the Commissioner of Social Security 
        to any individual, when such person knows or should know that 
        such number is not the social security account number assigned 
        by the Commissioner to such individual;
          ``(C) knowingly alters a social security card issued by the 
        Commissioner of Social Security, or possesses such a card with 
        intent to alter it;
          ``(D) knowingly buys or sells a card that is, or purports to 
        be, a card issued by the Commissioner of Social Security, or 
        possesses such a card with intent to buy or sell it;
          ``(E) counterfeits a social security card, or possesses a 
        counterfeit social security card with intent to buy or sell it;
          ``(F) discloses, uses, compels the disclosure of, or 
        knowingly sells or purchases the social security account number 
        of any person in violation of the laws of the United States;
          ``(G) with intent to deceive the Commissioner of Social 
        Security as to such person's true identity (or the true 
        identity of any other person) furnishes or causes to be 
        furnished false information to the Commissioner with respect to 
        any information required by the Commissioner in connection with 
        the establishment and maintenance of the records provided for 
        in section 205(c)(2);
          ``(H) offers, for a fee, to acquire for any individual, or to 
        assist in acquiring for any individual, an additional social 
        security account number or a number which purports to be a 
        social security account number; or
          ``(I) being an officer or employee of any executive, 
        legislative, or judicial agency or instrumentality of the 
        Federal Government or of a State or political subdivision 
        thereof (or a person acting as an agent of such an agency or 
        instrumentality) or (in connection with section 
        205(c)(2)(C)(xi)) a trustee appointed in a case under title 11, 
        United States Code (or an officer or employee thereof or a 
        person acting as an agent thereof), in possession of any 
        individual's social security account number, willfully acts or 
        fails to act so as to cause a violation of clause (vi)(II), 
        (x), (xi), (xii), or (xiv) of section 205(c)(2)(C);
shall be subject to, in addition to any other penalties that may be 
prescribed by law, a civil money penalty of not more than $5,000 for 
each violation. Such person shall also be subject to an assessment, in 
lieu of damages sustained by the United States resulting from such 
violation, of not more than twice the amount of any benefits or 
payments paid as a result of such violation.''.
  (c) Clarification of Treatment of Recovered Amounts.--Section 
1129(e)(2)(B) of such Act (42 U.S.C. 1320a-8(e)(2)(B)) is amended by 
striking ``In the case of amounts recovered arising out of a 
determination relating to title VIII or XVI,'' and inserting ``In the 
case of any other amounts recovered under this section,''.
  (d) Conforming Amendments.--
          (1) Section 1129(b)(3)(A) of such Act (42 U.S.C. 1320a-
        8(b)(3)(A)) is amended by striking ``charging fraud or false 
        statements''.
          (2) Section 1129(c)(1) of such Act (42 U.S.C. 1320a-8(c)(1)) 
        is amended by striking ``and representations'' and inserting 
        ``, representations, or actions''.
          (3) Section 1129(e)(1)(A) of such Act (42 U.S.C. 1320a-
        8(e)(1)(A)) is amended by striking ``statement or 
        representation referred to in subsection (a) was made'' and 
        inserting ``violation occurred''.
  (e) Effective Dates.--The amendments made by this section shall apply 
with respect to violations committed after the date of the enactment of 
this Act, except that section 1129(a)(3)(I) of the Social Security Act 
(added by subsection (b)) shall apply with respect to violations 
occurring on or after the effective date provided in connection with 
such violations under title I.

SEC. 304. AUTHORITY FOR JUDICIAL ORDERS OF RESTITUTION.

  (a) Amendments to Title II.--Section 208 of the Social Security Act 
(42 U.S.C. 408) (as amended by section 302(a)) is further amended--
          (1) by redesignating subsections (b), (c), (d), and (e) as 
        subsections (c), (d), (e), and (f), respectively; and
          (2) by inserting after subsection (a) the following new 
        subsection:
  ``(b)(1) Any Federal court, when sentencing a defendant convicted of 
an offense under subsection (a), may order, in addition to or in lieu 
of any other penalty authorized by law, that the defendant make 
restitution to the Social Security Administration.
  ``(2) Sections 3612, 3663, and 3664 of title 18, United States Code, 
shall apply with respect to the issuance and enforcement of orders of 
restitution under this subsection. In so applying such sections, the 
Social Security Administration shall be considered the victim.
  ``(3) If the court does not order restitution, or orders only partial 
restitution, under this subsection, the court shall state on the record 
the reasons therefor.''.
  (b) Amendments to Title VIII.--Section 807(i) of such Act (42 U.S.C. 
1007(i)) is amended--
          (1) by striking ``(i) Restitution.--In any case where'' and 
        inserting the following:
  ``(i) Restitution.--
          ``(1) In general.--In any case where''; and
          (2) by adding at the end the following new paragraph:
          ``(2) Court order for restitution.--
                  ``(A) In general.--Any Federal court, when sentencing 
                a defendant convicted of an offense under subsection 
                (a), may order, in addition to or in lieu of any other 
                penalty authorized by law, that the defendant make 
                restitution to the Social Security Administration.
                  ``(B) Related provisions.--Sections 3612, 3663, and 
                3664 of title 18, United States Code, shall apply with 
                respect to the issuance and enforcement of orders of 
                restitution under this paragraph. In so applying such 
                sections, the Social Security Administration shall be 
                considered the victim.
                  ``(C) Stated reasons for not ordering restitution.--
                If the court does not order restitution, or orders only 
                partial restitution, under this paragraph, the court 
                shall state on the record the reasons therefor.''.
  (c) Amendments to Title XVI.--Section 1632 of such Act (42 U.S.C. 
1383a) is amended--
          (1) by redesignating subsection (b) as subsection (c); and
          (2) by inserting after subsection (a) the following new 
        subsection:
  ``(b)(1) Any Federal court, when sentencing a defendant convicted of 
an offense under subsection (a), may order, in addition to or in lieu 
of any other penalty authorized by law, that the defendant make 
restitution to the Social Security Administration.
  ``(2) Sections 3612, 3663, and 3664 of title 18, United States Code, 
shall apply with respect to the issuance and enforcement of orders of 
restitution under this subsection. In so applying such sections, the 
Social Security Administration shall be considered the victim.
  ``(3) If the court does not order restitution, or orders only partial 
restitution, under this subsection, the court shall state on the record 
the reasons therefor.''.
  (d) Special Account for Receipt of Restitution Payments.--Section 
704(b) of such Act (42 U.S.C. 904(b)) is amended by adding at the end 
the following new paragraph:
  ``(3)(A) Except as provided in subparagraph (B), amounts received by 
the Social Security Administration pursuant to an order of restitution 
under section 208(b), 807(i), or 1632(b) shall be credited to a special 
fund established in the Treasury of the United States for amounts so 
received or recovered. The amounts so credited, to the extent and in 
the amounts provided in advance in appropriations Acts, shall be 
available to defray expenses incurred in carrying out title II, title 
VIII, and title XVI.
  ``(B) Subparagraph (A) shall not apply with respect to amounts 
received in connection with misuse by a representative payee (within 
the meaning of sections 205(j), 807, and 1631(a)(2)) of funds paid as 
benefits under title II, VIII, or XVI. Such amounts received in 
connection with misuse of funds paid as benefits under title II shall 
be transferred to the Managing Trustee of the Federal Old-Age and 
Survivors Insurance Trust Fund or the Federal Disability Insurance 
Trust Fund, as determined appropriate by the Commissioner of Social 
Security, and such amounts shall be deposited by the Managing Trustee 
into such Trust Fund. All other such amounts shall be deposited by the 
Commissioner into the general fund of the Treasury as miscellaneous 
receipts.''.
  (e) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply with respect to violations occurring on or after the date 
of the enactment of this Act.

SEC. 305. LAW ENFORCEMENT AUTHORITY FOR THE OFFICE OF THE INSPECTOR 
                    GENERAL OF THE SOCIAL SECURITY ADMINISTRATION.

  Section 702(e) of the Social Security Act (42 U.S.C. 902(e)) is 
amended--
          (1) by inserting ``(1) In General.--'' after ``(e)''; and
          (2) by adding at the end the following:
  ``(2) Law Enforcement Authority.--
          ``(A) Specific designations.--The Inspector General may 
        designate one or more special agents in the Office of the 
        Inspector General to exercise the authorities specified in 
        subparagraph (B).
          ``(B) Authorities.--A special agent in the Office of the 
        Inspector General who is designated under subparagraph (A) 
        may--
                  ``(i) carry firearms, while engaged in the special 
                agent's official duties conducted pursuant to the 
                Inspector General Act of 1978 (5 U.S.C. App.) or any 
                other statute, or as expressly authorized by the 
                Attorney General of the United States,
                  ``(ii) seek and execute warrants for arrest, search 
                of premises, or seizure of evidence issued under the 
                authority of the United States, upon probable cause to 
                believe that a violation of law has been committed, and
                  ``(iii) make an arrest without a warrant, while 
                engaged in the special agent's official duties 
                conducted pursuant to the Inspector General Act of 1978 
                (5 U.S.C. App.) or any other statute, or as expressly 
                authorized by the Attorney General, for--
                          ``(I) any offense against the United States 
                        committed in the presence of the special agent, 
                        or
                          ``(II) any felony cognizable under the laws 
                        of the United States, if the special agent has 
                        reasonable grounds to believe that the person 
                        to be arrested has committed or is committing 
                        such felony.
          ``(C) Special agent.--For purposes of this paragraph, the 
        term `special agent' means an employee in the Office of the 
        Inspector General whose duties include conducting, supervising, 
        and coordinating investigations of criminal activity in the 
        programs and operations of the Social Security Administration.
          ``(D) Use of state or local law enforcement officers.--
                  ``(i) In general.--Any State or local law enforcement 
                officer designated by the Inspector General, while 
                assisting a special agent designated under subparagraph 
                (A), may exercise the authorities provided under 
                subparagraph (B).
                  ``(ii) Applicability of provisions governing federal 
                employees.--
                          ``(I) In general.--Any such officer shall not 
                        be deemed a Federal employee, and, subject to 
                        subclause (II), shall not be subject to 
                        provisions of law relating to Federal 
                        employees, solely by reason of the exercise by 
                        such officer of any such authority.
                          ``(II) Applicability of certain provisions.--
                        While exercising such authority, such officer 
                        shall be subject to subsection (c) of section 
                        3374 of title 5, United States Code, as if such 
                        officer were assigned and appointed as 
                        described in such section, except that nothing 
                        in this clause shall be construed to authorize 
                        Federal pay or other compensation for such 
                        officer.
          ``(E) Guidelines on exercise of authorities.--The authorities 
        provided under subparagraph (B) shall be exercised in 
        accordance with guidelines prescribed by the Inspector General 
        and approved by the Attorney General of the United States. Such 
        guidelines shall be issued within 1 year after the date of the 
        enactment of the Social Security Number Privacy and Identity 
        Theft Prevention Act of 2000.''.

         TITLE IV--PROVISIONS RELATING TO REPRESENTATIVE PAYEES

SEC. 401. AUTHORITY TO REISSUE BENEFITS MISUSED BY ORGANIZATIONAL 
                    REPRESENTATIVE PAYEES.

  (a) OASDI Amendments.--
          (1) Reissuance of benefits.--Section 205(j)(5) of the Social 
        Security Act (42 U.S.C. 405(j)(5)) is amended by inserting 
        after the first sentence the following new sentence: ``In any 
        case in which a representative payee--
          ``(i) that is not an individual (regardless of whether it is 
        a `qualified organization' within the meaning of paragraph 
        (4)(B)); or
          ``(ii) is an individual who, for any month during a period 
        when misuse occurs, serves 15 or more individuals who are 
        beneficiaries under title II, title VIII, title XVI, or any 
        combination of such titles;
misuses all or part of an individual's benefit paid to such 
representative payee, the Commissioner of Social Security shall certify 
for payment to the beneficiary or the beneficiary's alternative 
representative payee an amount equal to the amount of such benefit so 
misused. The provisions of this paragraph are subject to the 
limitations of paragraph (6)(B).''.
          (2) Misuse of benefits defined.--Section 205(j) of such Act 
        (42 U.S.C. 405(j)) is amended by adding at the end the 
        following new paragraph:
  ``(8) For purposes of this subsection, misuse of benefits by a 
representative payee occurs in any case in which the representative 
payee receives payment under this title for the use and benefit of 
another person and converts such payment, or any part thereof, to a use 
other than for the use and benefit of such other person. The 
Commissioner of Social Security may prescribe by regulation the meaning 
of the term `use and benefit' for purposes of this paragraph.''.
  (b) SVB Amendments.--
          (1) Reissuance of benefits.--Section 807(i) of the Social 
        Security Act (42 U.S.C. 1007(i)) is amended by inserting after 
        the first sentence the following new sentence: ``In any case in 
        which a representative payee--
                  ``(A) that is not an individual; or
                  ``(B) is an individual who, for any month during a 
                period when misuse occurs, serves 15 or more 
                individuals who are beneficiaries under this title, 
                title II, title XVI, or any combination of such titles;
        misuses all or part of an individual's benefit paid to such 
        representative payee, the Commissioner of Social Security shall 
        pay to the beneficiary or the beneficiary's alternative 
        representative payee an amount equal to the amount of such 
        benefit so misused. The provisions of this paragraph are 
        subject to the limitations of subsection (j)(2).''.
          (2) Misuse of benefits defined.--Section 807 of such Act (42 
        U.S.C. 1007) is amended by adding at the end the following new 
        subsection:
  ``(j) Misuse of Benefits.--For purposes of this title, misuse of 
benefits by a representative payee occurs in any case in which the 
representative payee receives payment under this title for the use and 
benefit of another person and converts such payment, or any part 
thereof, to a use other than for the use and benefit of such other 
person. The Commissioner of Social Security may prescribe by regulation 
the meaning of the term `use and benefit' for purposes of this 
paragraph.''.
  (c) SSI Amendments.--
          (1) Reissuance of benefits.--Section 1631(a)(2)(E) of such 
        Act (42 U.S.C. 1383(a)(2)(E)) is amended by inserting after the 
        first sentence the following new sentence: ``In any case in 
        which a representative payee--
          ``(i) that is not an individual (regardless of whether it is 
        a `qualified organization' within the meaning of subparagraph 
        (D)(ii)); or
          ``(ii) is an individual who, for any month during a period 
        when misuse occurs, serves 15 or more individuals who are 
        beneficiaries under title II, title VIII, title XVI, or any 
        combination of such titles;
misuses all or part of an individual's benefit paid to such 
representative payee, the Commissioner of Social Security shall make 
payment to the beneficiary or the beneficiary's alternative 
representative payee of an amount equal to the amount of such benefit 
so misused. The provisions of this subparagraph are subject to the 
limitations of subparagraph (F)(ii).''.
          (2) Exclusion of reissued benefits from resources.--Section 
        1613(a) of such Act (42 U.S.C. 1382b(a)) is amended--
                  (A) in paragraph (12), by striking ``and'' at the 
                end;
                  (B) in paragraph (13), by striking the period and 
                inserting ``; and''; and
                  (C) by inserting after paragraph (13) the following 
                new paragraph:
          ``(14) for the 9-month period beginning after the month in 
        which received, any amount received by such individual (or 
        spouse) or any other person whose income is deemed to be 
        included in such individual's (or spouse's) income for purposes 
        of this title as restitution for benefits under this title, 
        title II, or title VIII misused by the representative payee.''.
          (3) Misuse of benefits defined.--Section 1631(a)(2)(A) of 
        such Act (42 U.S.C. 1383(a)(2)(A)) is amended by adding at the 
        end the following new clause:
  ``(iv) For purposes of this subsection, misuse of benefits by a 
representative payee occurs in any case in which the representative 
payee receives payment under this title for the use and benefit of 
another person and converts such payment, or any part thereof, to a use 
other than for the use and benefit of such other person. The 
Commissioner of Social Security may prescribe by regulation the meaning 
of the term `use and benefit' for purposes of this clause.''.
  (d) Effective Date.--The preceding amendments made by this section 
shall apply to any case of benefit misuse by a representative payee 
with respect to which the Commissioner makes the determination of 
misuse on or after January 1, 1995.
  (e) Technical Amendments.--
          (1) Section 205(j) of the Social Security Act (42 U.S.C. 
        405(j)) is amended by striking paragraph (6).
          (2) Section 1631(a)(2) of such Act (42 U.S.C. 1383(a)(2)) is 
        amended by striking subparagraph (G).

SEC. 402. OVERSIGHT OF REPRESENTATIVE PAYEES.

  (a) Certification of Bonding and Licensing Requirements for 
Nongovernmental Organizational Representative Payees.--
          (1) OASDI amendment.--Section 205(j) of the Social Security 
        Act (42 U.S.C. 405(j)) is amended--
                  (A) in paragraph (2)(C)(v)--
                          (i) by striking ``a community-based nonprofit 
                        social service agency licensed or bonded by the 
                        State'' in subclause (I) and inserting ``a 
                        certified community-based nonprofit social 
                        service agency''; and
                          (ii) by adding at the end the following: 
                        ``For purposes of subclause (I), the term 
                        `certified community-based nonprofit social 
                        service agency' means a community based 
                        nonprofit social service agency which is in 
                        compliance with requirements, under regulations 
                        which shall be prescribed by the Commissioner, 
                        for annual certification to the Commissioner 
                        that it is bonded in accordance with 
                        requirements specified by the Commissioner and 
                        that it is licensed in each State in which it 
                        serves as a representative payee (if licensing 
                        is available in such State) in accordance with 
                        requirements specified by the Commissioner. Any 
                        such annual certification shall include a copy 
                        of any independent audit on such agency which 
                        may have been performed since the previous 
                        certification.''; and
                  (B) in paragraph (4)(B), by striking ``any community-
                based nonprofit social service agency which is bonded 
                or licensed in each State in which it serves as a 
                representative payee'' and inserting ``any certified 
                community-based nonprofit social service agency (as 
                defined in paragraph (2)(C)(v))''.
          (2) SSI amendment.--Section 1631(a)(2) of such Act (42 U.S.C. 
        1383(a)(2)) is amended--
                  (A) in subparagraph (B)(vii)--
                          (i) by striking ``a community-based nonprofit 
                        social service agency licensed or bonded by the 
                        State'' in subclause (I) and inserting ``a 
                        certified community-based nonprofit social 
                        service agency''; and
                          (ii) by adding at the end the following: 
                        ``For purposes of subclause (I), the term 
                        `certified community-based nonprofit social 
                        service agency' means a community based 
                        nonprofit social service agency which is in 
                        compliance with requirements, under regulations 
                        which shall be prescribed by the Commissioner, 
                        for annual certification to the Commissioner 
                        that it is bonded in accordance with 
                        requirements specified by the Commissioner and 
                        that it is licensed in each State in which it 
                        serves as a representative payee (if licensing 
                        is available in such State) in accordance with 
                        requirements specified by the Commissioner. Any 
                        such annual certification shall include a copy 
                        of any independent audit on such agency which 
                        may have been performed since the previous 
                        certification.''; and
                  (B) in subparagraph (D)(ii)--
                          (i) by striking ``or any community-based'' 
                        and all that follows down through ``in 
                        accordance'' in subclause (II) and inserting 
                        ``or any certified community-based nonprofit 
                        social service agency (as defined in 
                        subparagraph (B)(vii)), if such agency, in 
                        accordance'';
                          (ii) by redesignating items (aa) and (bb) as 
                        subclauses (I) and (II), respectively (and 
                        adjusting the margination accordingly); and
                          (iii) by striking ``subclause (II)(bb)'' and 
                        inserting ``subclause (II)''.
          (3) Effective date.--The amendments made by this subsection 
        shall take effect on the first day of the thirteenth month 
        beginning after the date of the enactment of this Act.
  (b) Periodic Onsite Review.--
          (1) OASDI amendment.--Section 205(j) of such Act (as amended 
        by section 401(a)(2)) is amended further by adding at the end 
        the following new paragraph:
  ``(9) The Commissioner of Social Security shall provide for the 
periodic onsite inspection of any person or agency that receives the 
benefits payable under this title, title VIII, or title XVI to another 
individual pursuant to the appointment of such person or agency as a 
representative payee under this subsection, section 807, or section 
1631(a)(2) in any case in which--
          ``(A) the representative payee is a person who serves in that 
        capacity with respect to 15 or more such individuals;
          ``(B) the representative payee is a certified community-based 
        nonprofit social service agency (as defined in paragraph 
        (2)(C)(v) or section 1631(a)(2)(B)(vii)); or
          ``(C) the representative payee is an agency (other than an 
        agency described in subparagraph (B)) that serves in that 
        capacity with respect to 50 or more such individuals.''.
          (2) SVB amendment.--Section 807 of such Act (as amended by 
        section 401(b)(2)) is amended further by adding at the end the 
        following new subsection:
  ``(k) Periodic Onsite Inspection.--The Commissioner of Social 
Security shall provide for the periodic onsite inspection of any person 
or agency that receives the benefits payable under this title, title 
II, or title XVI to another individual pursuant to the appointment of 
such person or agency as a representative payee under this section, 
section 205(j), or section 1631(a)(2) in any case in which--
          ``(1) the representative payee is a person who serves in that 
        capacity with respect to 15 or more such individuals;
          ``(2) the representative payee is a certified community-based 
        nonprofit social service agency (as defined in section 
        205(j)(2)(C)(v) or section 1631(a)(2)(B)(vii)); or
          ``(3) the representative payee is an agency (other than an 
        agency described in paragraph (2)) that serves in that capacity 
        with respect to 50 or more such individuals.''.
          (3) SSI amendment.--Section 1631(a)(2) of such Act (42 U.S.C. 
        1383(a)(2)) is amended by adding at the end the following new 
        subparagraph:
  ``(I) The Commissioner of Social Security shall provide for the 
periodic onsite inspection of any person or agency that receives the 
benefits payable under this title, title II, or title VIII to another 
individual pursuant to the appointment of such person or agency as a 
representative payee under this paragraph, section 205(j), or section 
807 in any case in which--
          ``(i) the representative payee is a person who serves in that 
        capacity with respect to 15 or more such individuals;
          ``(ii) the representative payee is a certified community-
        based nonprofit social service agency (as defined in section 
        205(j)(2)(C)(v) or section 1631(a)(2)(B)(vii)); or
          ``(iii) the representative payee is an agency (other than an 
        agency described in clause (ii)) that serves in that capacity 
        with respect to 50 or more such individuals.''.

SEC. 403. DISQUALIFICATION FROM SERVICE AS REPRESENTATIVE PAYEE UPON 
                    CONVICTION OF OFFENSES RESULTING IN IMPRISONMENT 
                    FOR MORE THAN 1 YEAR.

  (a) OASDI Amendment.--Section 205(j)(2) of the Social Security Act 
(42 U.S.C. 405(j)(2)) is amended--
          (1) in subparagraph (B)(i)--
                  (A) by striking ``and'' at the end of subclause 
                (III);
                  (B) by redesignating subclause (IV) as subclause (V); 
                and
                  (C) by inserting after subclause (III) the following 
                new subclause:
          ``(IV) obtain information concerning whether such person has 
        been convicted of any other offense under Federal or State law 
        which resulted in imprisonment for more than 1 year, and'';
          (2) in subparagraph (C)(i)(II), by striking ``subparagraph 
        (B)(i)(IV),'' and inserting ``subparagraph (B)(i)(V)'' and 
        striking ``section 1631(a)(2)(B)(ii)(IV)'' and inserting 
        ``section 1631(a)(2)(B)(ii)(V)''; and
          (3) in subparagraph (C)(i), by adding after and below 
        subclause (III) the following new sentence:
``Benefits of an individual may not be certified for payment to any 
other person pursuant to this subsection if such person has previously 
been convicted as described in subparagraph (B)(i)(IV), unless the 
Commissioner determines that such certification would be appropriate 
notwithstanding such conviction.''.
  (b) SVB Amendment.--Section 807(b) of such Act (42 U.S.C. 1007(b)) is 
amended--
          (1) in paragraph (2)--
                  (A) by striking ``and'' at the end of subparagraph 
                (C);
                  (B) by redesignating subparagraph (D) as subparagraph 
                (E); and
                  (C) by inserting after subparagraph (C) the following 
                new subparagraph:
                  ``(D) obtain information concerning whether such 
                person has been convicted of any other offense under 
                Federal or State law which resulted in imprisonment for 
                more than 1 year; and''; and
          (2) in subsection (d)(1), by adding after and below 
        subparagraph (C) the following new sentence:
        ``Benefits of an individual may not be paid to any other person 
        pursuant to this subsection if such person has previously been 
        convicted as described in subsection (b)(2)(D), unless the 
        Commissioner determines that such payment would be appropriate 
        notwithstanding such conviction.''.
  (c) SSI Amendment.--Section 1631(a)(2)(B) of such Act (42 U.S.C. 
1383(a)(2)(B)) is amended--
          (1) in clause (ii)--
                  (A) by striking ``and'' at the end of subclause 
                (III);
                  (B) by redesignating subclause (IV) as subclause (V); 
                and
                  (C) by inserting after subclause (III) the following 
                new subclause:
          ``(IV) obtain information concerning whether such person has 
        been convicted of any other offense under Federal or State law 
        which resulted in imprisonment for more than 1 year; and''; and
          (2) in clause (iii), by adding after and below subclause 
        (III) the following new sentence:
``Benefits of an individual may not be paid to any other person 
pursuant to subparagraph (A)(ii) if such person has previously been 
convicted as described in clause (ii)(IV), unless the Commissioner 
determines that such payment would be appropriate notwithstanding such 
conviction.''.
  (d) Effective Date.--The amendments made by the preceding provisions 
of this section shall take effect on the first day of the thirteenth 
month beginning after the date of the enactment of this Act.
  (e) Technical Amendments.--Section 1631(a)(2)(B)(iii)(II) of the 
Social Security Act (42 U.S.C. 1383(a)(2)(B)(iii)(II)) is amended--
          (1) by striking ``clause (ii)(IV)'' and inserting ``clause 
        (ii)(V)''; and
          (2) by striking ``section 205(j)(2)(B)(i)(IV)'' and inserting 
        ``section 205(j)(2)(B)(i)(V)''.

SEC. 404. FEE FORFEITURE IN CASE OF BENEFIT MISUSE BY REPRESENTATIVE 
                    PAYEES.

  (a) OASDI Amendment.--Section 205(j)(4)(A)(i) of the Social Security 
Act (42 U.S.C. 405(j)(4)(A)(i)) is amended--
          (1) in the first sentence, by striking ``A'' and inserting 
        ``Except as provided in the next sentence, a''; and
          (2) by inserting before the second sentence the following new 
        sentence: ``A qualified organization may not collect a fee from 
        an individual for any month with respect to which the 
        Commissioner of Social Security or a court of competent 
        jurisdiction has determined that the organization misused all 
        or part of the individual's benefit, and any amount so 
        collected by the qualified organization for such month shall be 
        treated as a misused part of the individual's benefit for 
        purposes of paragraphs (5) and (6).''.
  (b) SSI Amendment.--Section 1631(a)(2)(D)(i) of such Act (42 U.S.C. 
1383(a)(2)(D)(i)) is amended--
          (1) in the first sentence, by striking ``A'' and inserting 
        ``Except as provided in the next sentence, a''; and
          (2) by inserting before the second sentence the following new 
        sentence: ``A qualified organization may not collect a fee from 
        an individual for any month with respect to which the 
        Commissioner of Social Security or a court of competent 
        jurisdiction has determined that the organization misused all 
        or part of the individual's benefit, and any amount so 
        collected by the qualified organization for such month shall be 
        treated as a misused part of the individual's benefit for 
        purposes of subparagraphs (E) and (F).''.
  (c) Effective Date.--The amendments made by this section shall apply 
to any month involving benefit misuse by a representative payee in any 
case with respect to which the Commissioner makes the determination of 
misuse after December 31, 1999.

SEC. 405. LIABILITY OF REPRESENTATIVE PAYEES FOR MISUSED BENEFITS.

  (a) OASDI Amendment.--Section 205(j) of the Social Security Act (42 
U.S.C. 405(j)) (as amended by section 401(e)(1)) is amended further by 
inserting after paragraph (5) the following new paragraph:
  ``(6)(A) If the Commissioner of Social Security or a court of 
competent jurisdiction determines that a representative payee that is 
not a Federal, State, or local government agency has misused all or 
part of an individual's benefit that was paid to such representative 
payee under this subsection, the representative payee shall be liable 
for the amount misused, and such amount (to the extent not repaid by 
the representative payee) shall be treated as an overpayment of 
benefits under this title to the representative payee for all purposes 
of this Act and related laws pertaining to the recovery of such 
overpayments. Subject to subparagraph (B), upon recovering all or any 
part of such amount, the Commissioner shall certify an amount equal to 
the recovered amount for payment to such individual or the individual's 
alternative representative payee.
  ``(B) The total of the amount certified for payment to such 
individual or the individual's alternative representative payee under 
subparagraph (A) and the amount certified for payment under paragraph 
(5) may not exceed the total benefit amount misused by the 
representative payee with respect to such individual.''.
  (b) SVB Amendment.--Section 807 of such Act (as amended by section 
402(b)(2)) is amended further by adding at the end the following new 
subsection:
  ``(l) Liability for Misused Amounts.--
          ``(1) In general.--If the Commissioner of Social Security or 
        a court of competent jurisdiction determines that a 
        representative payee that is not a Federal, State, or local 
        government agency has misused all or part of an individual's 
        benefit that was paid to such representative payee under this 
        section, the representative payee shall be liable for the 
        amount misused, and such amount (to the extent not repaid by 
        the representative payee) shall be treated as an overpayment of 
        benefits under this title to the representative payee for all 
        purposes of this Act and related laws pertaining to the 
        recovery of such overpayments. Subject to paragraph (2), upon 
        recovering all or any part of such amount, the Commissioner 
        shall make payment of an amount equal to the recovered amount 
        to such individual or the individual's alternative 
        representative payee.
          ``(2) Limitation.--The total of the amount paid to such 
        individual or the individual's alternative representative payee 
        under paragraph (1) and the amount paid under subsection (i) 
        may not exceed the total benefit amount misused by the 
        representative payee with respect to such individual.''.
  (c) SSI Amendment.--Section 1631(a)(2) of such Act (42 U.S.C. 
1383(a)(2)) (as amended by section 401(e)(2)) is amended by inserting 
after subparagraph (F) the following new subparagraph:
  ``(G)(i) If the Commissioner of Social Security or a court of 
competent jurisdiction determines that a representative payee that is 
not a Federal, State, or local government agency has misused all or 
part of an individual's benefit that was paid to such representative 
payee under this paragraph, the representative payee shall be liable 
for the amount misused, and such amount (to the extent not repaid by 
the representative payee) shall be treated as an overpayment of 
benefits under this title to the representative payee for all purposes 
of this Act and related laws pertaining to the recovery of such 
overpayments. Subject to clause (ii), upon recovering all or any part 
of such amount, the Commissioner shall make payment of an amount equal 
to the recovered amount to such individual or the individual's 
alternative representative payee.
  ``(ii) The total of the amount paid to such individual or the 
individual's alternative representative payee under clause (i) of this 
subparagraph and the amount paid under subparagraph (E) may not exceed 
the total benefit amount misused by the representative payee with 
respect to such individual.''.
  (d) Effective Date.--The amendments made by this section shall apply 
to benefit misuse by a representative payee in any case with respect to 
which the Commissioner makes the determination of misuse after December 
31, 1999.

SEC. 406. EXTENSION OF CIVIL MONETARY PENALTY AUTHORITY WITH RESPECT TO 
                    REPRESENTATIVE PAYEES.

  (a) In General.--Section 1129(a) of the Social Security Act (as 
amended by section 303(b)) is amended further--
          (1) by redesignating paragraph (4) as paragraph (5); and
          (2) by inserting after paragraph (3) the following new 
        paragraph:
  ``(4) Any person (including an organization, agency, or other entity) 
who, having received, while acting in the capacity of a representative 
payee pursuant to section 205(j), 807, or 1631(a)(2), a payment under 
title II, VIII, or XVI for the use and benefit of another individual, 
converts such payment, or any part thereof, to a use that such person 
knows or should know is other than for the use and benefit of such 
other individual shall be subject to, in addition to any other 
penalties that may be prescribed by law, a civil money penalty of not 
more than $5,000 for each conversion. Such person shall also be subject 
to an assessment, in lieu of damages sustained by the United States 
resulting from such conversion, of not more than twice the amount of 
any payments so converted.''.
  (b) Effective Date.--The amendments made by this section shall apply 
with respect to violations committed after the date of the enactment of 
this Act.

SEC. 407. AUTHORITY TO REDIRECT DELIVERY OF BENEFIT PAYMENTS WHEN A 
                    REPRESENTATIVE PAYEE FAILS TO PROVIDE REQUIRED 
                    ACCOUNTING.

  (a) OASDI Amendment.--Section 205(j)(3) of the Social Security Act 
(42 U.S.C. 405(j)(3)) is amended--
          (1) by redesignating subparagraphs (E) and (F) as 
        subparagraphs (F) and (G), respectively; and
          (2) by inserting after subparagraph (D) the following new 
        subparagraph:
  ``(E) In any case in which the person described in subparagraph (A) 
or (D) receiving payments on behalf of another fails to submit a report 
required by the Commissioner of Social Security under subparagraph (A) 
or (D), the Commissioner may, after furnishing notice and opportunity 
for a hearing to such person and the individual entitled to such 
payment, require that the person collect such payments in person at a 
field office of the Social Security Administration serving the area in 
which the individual resides.''.
  (b) SVB Amendment.--Section 807(h) of such Act (42 U.S.C. 1007(h)) is 
amended--
          (1) by redesignating paragraphs (3) and (4) as paragraphs (4) 
        and (5), respectively; and
          (2) by inserting after paragraph (2) the following new 
        paragraph:
          ``(3) Authority to restrict collection of payments by persons 
        failing to report.--In any case in which the person described 
        in paragraph (1) or (2) receiving payments on behalf of a 
        qualified individual fails to submit a report required by the 
        Commissioner of Social Security under paragraph (1) or (2), the 
        Commissioner may, after furnishing notice and opportunity for a 
        hearing to such person and the qualified individual, require 
        that the person collect such payments in person at a field 
        office of the Social Security Administration serving the area 
        in which the qualified individual resides.''.
  (c) SSI Amendment.--Section 1631(a)(2)(C) of such Act (42 U.S.C. 
1383(a)(2)(C)) is amended by adding at the end the following new 
clause:
  ``(v) In any case in which the person described in clause (i) or (iv) 
receiving payments on behalf of another fails to submit a report 
required by the Commissioner of Social Security under clause (i) or 
(iv), the Commissioner may, after furnishing notice and opportunity for 
a hearing to such person and the individual entitled to such payment, 
require that the person collect such payments in person at a field 
office of the Social Security Administration serving the area in which 
the individual resides.''.
  (d) Effective Date.--The amendments made by this section shall take 
effect 180 days after the date of the enactment of this Act.

            TITLE V--MISCELLANEOUS AND TECHNICAL AMENDMENTS

SEC. 501. TECHNICAL CORRECTION RELATING TO RESPONSIBLE AGENCY HEAD.

  Section 1143 of the Social Security Act (42 U.S.C. 1320b-13) is 
amended--
          (1) by striking ``Secretary'' the first place it appears and 
        inserting ``Commissioner of Social Security''; and
          (2) by striking ``Secretary'' each subsequent place it 
        appears and inserting ``Commissioner''.

SEC. 502. TECHNICAL CORRECTION RELATING TO DOMESTIC EMPLOYMENT.

  (a) Amendment to Internal Revenue Code.--Section 3121(a)(7)(B) of the 
Internal Revenue Code of 1986 is amended by striking ``described in 
subsection (g)(5)'' and inserting ``on a farm operated for profit''.
  (b) Amendment to Social Security Act.--Section 209(a)(6)(B) of the 
Social Security Act (42 U.S.C. 409(a)(6)(B)) is amended by striking 
``described in section 210(f)(5)'' and inserting ``on a farm operated 
for profit''.
  (c) Conforming Amendment.--Section 3121(g)(5) of such Code and 
section 210(f)(5) of such Act (42 U.S.C. 410(f)(5)) are amended by 
striking ``or is domestic service in a private home of the employer''.

SEC. 503. TECHNICAL CORRECTIONS OF OUTDATED REFERENCES.

  (a) Correction of Terminology and Citations Respecting Removal From 
the United States.--Section 202(n) of the Social Security Act (42 
U.S.C. 402(n)) is amended--
          (1) by striking ``deportation'' each place it appears and 
        inserting ``removal'';
          (2) by striking ``deported'' each place it appears and 
        inserting ``removed'';
          (3) in paragraph (1) (in the matter preceding subparagraph 
        (A)), by striking ``under section 241(a) (other than under 
        paragraph (1)(C) or (1)(E) thereof)'' and inserting ``under 
        section 237(a) (other than paragraph (1)(C) or (1)(E) thereof) 
        or 212(a)(6)(A)'';
          (4) in paragraph (2), by striking ``under any of the 
        paragraphs of section 241(a) of the Immigration and Nationality 
        Act (other than under paragraph (1)(C) or (1)(E) thereof)'' and 
        inserting ``under any of the paragraphs of section 237(a) of 
        the Immigration and Nationality Act (other than paragraph 
        (1)(C) or (1)(E) thereof) or under section 212(a)(6)(A) of such 
        Act'';
          (5) in paragraph (3)--
                  (A) by striking ``paragraph (19) of section 241(a)'' 
                and inserting ``subparagraph (D) of section 
                237(a)(4)''; and
                  (B) by striking ``paragraph (19)'' and inserting 
                ``subparagraph (D)''; and
          (6) in the heading, by striking ``Deportation'' and inserting 
        ``Removal''.
  (b) Correction of Citation Respecting the Tax Deduction Relating to 
Health Insurance Costs of Self-Employed Individuals.--Section 
211(a)(15) of such Act (42 U.S.C. 411(a)(15)) is amended by striking 
``section 162(m)'' and inserting ``section 162(l)''.
  (c) Elimination of Reference to Obsolete 20-Day Agricultural Work 
Test.--Section 3102(a) of the Internal Revenue Code of 1986 is amended 
by striking ``and the employee has not performed agricultural labor for 
the employer on 20 days or more in the calendar year for cash 
remuneration computed on a time basis''.

SEC. 504. TECHNICAL CORRECTION RELATING TO RETIREMENT BENEFITS OF 
                    MINISTERS.

  (a) In General.--Section 211(a)(7) of the Social Security Act 
(defining net earnings from self-employment) is amended by inserting 
``, but shall not include in any such net earnings from self-employment 
the rental value of any parsonage or any parsonage allowance (whether 
or not excluded under section 107 of the Internal Revenue Code of 1986) 
provided after the individual retires, or any other retirement benefit 
received by such individual from a church plan (as defined in section 
414(e) of such Code) after the individual retires'' before the 
semicolon at the end.
  (b) Effective Date.--The amendment made by this section shall apply 
to years beginning before, on, or after December 31, 1994.

SEC. 505. REQUIREMENTS RELATING TO OFFERS TO PROVIDE FOR A FEE A 
                    PRODUCT OR SERVICE AVAILABLE WITHOUT CHARGE FROM 
                    THE SOCIAL SECURITY ADMINISTRATION.

  (a) In General.--Section 1140 of the Social Security Act (42 U.S.C. 
1320b-10) is amended--
          (1) in subsection (a), by adding at the end the following new 
        paragraph:
  ``(4)(A) No person shall offer, for a fee, to assist an individual to 
obtain a product or service that the person knows or should know is 
provided free of charge by the Social Security Administration unless, 
at the time the offer is made, the person provides to the individual to 
whom the offer is tendered a notice that--
          ``(i) explains that the product or service is available free 
        of charge from the Social Security Administration, and
          ``(ii) complies with standards prescribed by the Commissioner 
        of Social Security respecting content, placement, visibility, 
        and legibility.
  ``(B) Subparagraph (A) shall not apply to any offer--
          ``(i) to serve as a claimant representative in connection 
        with a claim arising under title II, title VIII, or title XVI; 
        or
          ``(ii) to prepare, or assist in the preparation of, an 
        individual's plan for achieving self-support under title 
        XVI.''; and
          (2) in the heading, by striking ``prohibition of misuse of 
        symbols, emblems, or names in reference'' and inserting 
        ``prohibitions relating to references''.
  (b) Effective Date.--The amendments made by this section shall apply 
to offers of assistance made after the sixth month ending after the 
Commissioner of Social Security promulgates final regulations 
prescribing the standards applicable to the notice required to be 
provided in connection with such offer.

SEC. 506. FUNDING OF DEMONSTRATION PROJECTS PROVIDING FOR REDUCTIONS IN 
                    DISABILITY INSURANCE BENEFITS BASED ON EARNINGS.

  Section 302(f) of the Ticket to Work and Work Incentives Improvement 
Act of 1999 (Public Law 106-170; 42 U.S.C. 434 note) is amended to read 
as follows:
  ``(f) Expenditures.--
          ``(1) In general.--Except as provided in paragraph (2), 
        expenditures made for the demonstration projects under this 
        section shall be made from the Federal Disability Insurance 
        Trust Fund and the Federal Old-Age and Survivors Insurance 
        Trust Fund, as determined appropriate by the Commissioner of 
        Social Security, and from the Federal Hospital Insurance Trust 
        Fund and the Federal Supplementary Medical Insurance Trust 
        Fund, as determined appropriate by the Secretary of Health and 
        Human Services.
          ``(2) Administrative expenditures.--Administrative 
        expenditures for the demonstration projects under this section 
        incurred by the Commissioner of Social Security shall be made 
        from funds available pursuant to section 201(g) of the Social 
        Security Act, to the extent or in the amounts provided in 
        advance in appropriation Acts.''.

SEC. 507. OPTIONAL FEDERAL ADMINISTRATION OF STATE RECOGNITION 
                    PAYMENTS.

  (a) In General.--Title VIII of the Social Security Act is amended by 
inserting after section 810 (42 U.S.C. 1010) the following new section:

``SEC. 810A. OPTIONAL FEDERAL ADMINISTRATION OF STATE RECOGNITION 
                    PAYMENTS.

  ``(a) In General.--The Commissioner of Social Security may enter into 
an agreement with any State (or political subdivision thereof) that 
provides cash payments on a regular basis to individuals entitled to 
benefits under this title under which the Commissioner shall make such 
payments on behalf of such State (or political subdivision).
  ``(b) Agreement Terms.--
          ``(1) In general.--Such agreement shall include such terms as 
        the Commissioner finds necessary to achieve efficient and 
        effective administration of both this title and the State 
        program which provides the cash payments referred to in 
        subsection (a).
          ``(2) Financial terms.--Such agreement shall provide for the 
        State to pay the Commissioner, at such times and in such 
        installments as the parties may specify--
                  ``(A) an amount equal to the expenditures made by the 
                Commissioner pursuant to such agreement as payments to 
                individuals on behalf of such State; and
                  ``(B) an administrative fee equal to the 
                administrative expenses incurred by the Commissioner in 
                making such payments.
  ``(c) Special Disposition of Administrative Fees.--Administrative 
fees, upon collection, shall be credited to a special fund established 
in the Treasury of the United States for State recognition payments for 
certain World War II veterans. The amounts so credited, to the extent 
and in the amounts provided in advance in appropriations Acts, shall be 
available to defray expenses incurred in carrying out this title.''.
  (b) Conforming Amendments.--
          (1) The table of contents for title VIII of the Social 
        Security Act is amended by inserting after the item relating to 
        section 810 the following new item:

``Sec. 810A. Optional Federal administration of State recognition 
payments.''.

          (2) Section 1129A(e) of the Social Security Act (42 U.S.C. 
        1320a-8a(e)) is amended by inserting ``810A or'' after 
        ``agreement under section''.

SEC. 508. MILITARY WAGE CREDITS.

  (a) Termination of Automatic, Across-the-Board Wage Credits.--
          (1) Termination of wage credit.--Section 229(a)(2) of the 
        Social Security Act (42 U.S.C. 429(a)(2)) is amended by 
        inserting ``and before 2002'' after ``after 1977''.
          (2) Termination of annual funding authority.--Section 229(b) 
        of such Act (42 U.S.C. 429(b)) is amended in the first sentence 
        by inserting ``before 2002'' after ``each calendar year''.
          (3) Requirement for final accounting.--Section 229(b) of such 
        Act (42 U.S.C. 429(b)) is amended by adding at the end the 
        following: ``No later than June 1, 2004, the Commissioner of 
        Social Security shall determine whether and the extent, if any, 
        to which amounts transferred to the Federal Old-Age and 
        Survivors Insurance Trust Fund and the Federal Disability 
        Insurance Trust Fund under this subsection for calendar years 
        ending prior to January 1, 2002, were in excess of or less than 
        the amounts required to be so transferred. No later than 30 
        days following the Commissioner's determination, the Secretary 
        of the Treasury shall transfer from the general fund of the 
        Treasury to the Federal Old-Age and Survivors Insurance Trust 
        Fund or the Federal Disability Insurance Trust Fund, or from 
        such Trust Fund to the general fund of the Treasury, such 
        amount or amounts (if any) that the Commissioner determines to 
        be appropriate.''.
  (b) Military Wage Credit for Short-Term Enlisted Service Members Who 
Die or Become Disabled Before Age 47.--Section 229 of such Act (42 
U.S.C. 429) is amended by adding at the end the following:
  ``(c)(1) For purposes of determining entitlement to and the amount of 
any benefit for any month, or entitlement to any lump-sum death 
payment, payable under this title on the basis of the wages and self-
employment income of any individual--
          ``(A) who has died or is under a disability (as defined in 
        section 223(d)),
          ``(B) whose death or date of onset of such disability 
        occurred prior to the individual's attainment of age 47, and
          ``(C) who, prior to the date of death or onset of such 
        disability, performed fewer than 6 years service as a member of 
        a uniformed service (as defined in section 210(m)) that was 
        included in the term `employment' as defined in section 210(a) 
        as a result of the provisions of section 210(l)(1)(A),
there shall be deemed to have been paid to such individual in each 
calendar year occurring after 2001 in which such individual was paid 
wages for the service described in subparagraph (C) at the rate of 
basic pay for a pay grade below E-6, additional wages of $100 for each 
$300 of wages paid for the service described in subparagraph (C), up to 
a maximum of $1,200 of additional wages for any calendar year.
  ``(2)(A) Whenever the Commissioner computes the primary insurance 
amount of an individual described in paragraph (1) for the purpose of 
determining the amount of a monthly benefit payable on the basis of 
such individual's wages and self-employment income, the Commissioner 
shall additionally calculate, with respect to each calendar year (not 
previously subject to a calculation under this subparagraph) in which 
additional wages are deemed to have been paid to such individual (under 
paragraph (1)) and which is also a benefit computation year (as defined 
in section 215(b)(2)(B)) used in the computation of such primary 
insurance amount, the total of--
          ``(i) the amounts that would have been appropriated to the 
        Federal Old-Age and Survivors Insurance Trust Fund and the 
        Federal Disability Insurance Trust Fund under section 201 if 
        such deemed additional wages had constituted wages (as defined 
        in section 3121(a) of the Internal Revenue Code of 1986) for 
        purposes of the taxes imposed by sections 3101 and 3111 of such 
        Code in such calendar year, and
          ``(ii) such additional amounts as are necessary to place such 
        Trust Funds in the position, as of the last day of the calendar 
        year in which the Commissioner so computes such individual's 
        primary insurance amount, that they would have been in on such 
        day had the amounts described in clause (i) been appropriated 
        to such Trust Funds under section 201 in a timely manner.
  ``(B) No later than July 1 of the year 2003 and each year thereafter, 
the Commissioner shall notify the Secretary of the Treasury of the 
total, with respect to each such Trust Fund, of all amounts calculated 
by the Commissioner under subparagraph (A) during the preceding 
calendar year. Within 30 days following notification by the 
Commissioner, the Secretary of the Treasury shall transfer the amount 
so calculated with respect to each such Trust Fund to such Trust Fund 
from amounts in the general fund of the Treasury not otherwise 
appropriated. Proper adjustment shall be made in amounts required to be 
transferred with respect to any calendar year to the extent that the 
Commissioner determines, on the basis of appropriate data, that amounts 
calculated and transferred with respect to any earlier year were less 
than, or in excess of, the amount required to be so calculated and 
transferred.
  ``(3) The head of each uniformed service described in section 210(m) 
shall report to the Commissioner, in such form and within such time 
frame as the Commissioner may specify, such information as the 
Commissioner may require for the purpose of carrying out this 
subsection.''.

                            I. INTRODUCTION


                         A. Purpose and Summary


Purpose

    The purpose of H.R. 4857, as amended (the ``Social Security 
Number Privacy and Identity Theft Prevention Act of 2000'') is 
to protect the privacy of the Social Security Account Number 
(SSN), to combat SSN fraud and misuse (including identity 
theft), and to strengthen protections for beneficiaries whose 
benefits are managed by representative payees.

Summary

    Provisions Relating to the Social Security Account Number 
in the Public Sector.--The bill would limit the sale and public 
display of Sans by Federal, State and local governments. In 
addition, the bill would prohibit the SSN from appearing on 
government checks issued for payment, employee identification 
cards or tags, and State Department of Motor Vehicle 
identification documents, including drivers' licenses and motor 
vehicle registrations.
    Provisions Relating to the Social Security Account Number 
in the Private Sector.--The bill would restrict the sale and 
purchase of SSNs and would prohibit businesses from denying 
services to individuals who refuse to disclose their SSNs. In 
addition, the bill would amend the definition of ``consumer 
report'' in the Fair Credit Reporting Act to include the SSN as 
part of the information protected under the Act.
    Enforcement.--The bill would provide new civil and criminal 
penalties for violations of the law and would provide enhanced 
law enforcement authority for the Social Security 
Administration Office of Inspector General (SSA/OIG).
    Provisions Relating to Representative Payees.--The bill 
would impose more stringent requirements on certain individuals 
and organizations who apply to be representative payees. It 
would also establish civil and criminal penalties for 
representative payees who abuse their duties by misusing the 
funds of Social Security and Supplemental Security Income (SSI) 
beneficiaries, and would require the Commissioner of Social 
Security to reimburse certain beneficiaries whose funds have 
been misused.
    Miscellaneous and Technical Amendments.--The bill includes 
miscellaneous and technical amendments to the Social Security 
Act and Internal Revenue Code. The bill would also eliminate 
deemed military wage credits for certain active duty military 
service, allowing the funds to be applied to other military 
compensation packages.

                 B. Background and Need for Legislation

    The SSN was created in 1935 for the sole purpose of 
tracking workers' earnings so that Social Security benefits 
could be calculated upon retirement or disability. Over 290 
million people have SSNs today.
    Because a unique SSN is assigned to each individual, the 
number is commonly used as a personal identifier, although it 
was never intended for this purpose. Consequently, use of the 
SSN has increased dramatically since its creation.
    Expanded Federal use of the SSN was first mandated by 
President Roosevelt in 1943 with Executive Order 9397. This 
Executive Order required that any Federal department 
establishing a new system of permanent account numbers 
pertaining to an individual must utilize the SSN exclusively, 
and that such personal information must be kept confidential. 
Today the SSN is required by Federal law for the administration 
of a number of government programs, such as Food Stamps, 
Medicaid, and Temporary Assistance for Needy Families, among 
many others.
    The SSN is also widely used in the public and private 
sectors for purposes that are neither required nor prohibited 
by law. As a result, the SSN is generally regarded as the 
single-most widely used record identifier by both government 
and private sectors within the United States.
    The prevalence of SSN use and the ease by which individuals 
can obtain another person's SSN have raised serious concerns 
over privacy and opportunities for fraud. For instance, in the 
public sector, SSN cards may be counterfeited for illegal 
aliens, and false SSN information may be provided to obtain 
federal benefits illegally. In the private sector, SSN misuse 
is a central component of identity theft, which is considered 
the fastest growing financial crime in the country, affecting 
approximately 500,000 to 700,000 people annually. In fiscal 
year 1999, SSA/OIG received 62,000 allegations of SSN misuse 
and the average number of monthly allegations has been 
increasing.
    SSN misuse imposes significant costs for the government, 
the private sector, and individuals who are victims of identity 
theft. For example, reported monetary losses associated with 
identity theft rose from $442 million in 1995 to $745 million 
in 1997--a 169 percent increase in two years.
    Growing concerns over fraud and privacy and the absence of 
a comprehensive Federal law regulating the use of SSNs have 
prompted a need to better protect SSNs in the law. Titles I, II 
and III of H.R. 4857 address this need.
    Title IV of H.R. 4857 is needed to protect approximately 
6.5 million Social Security and SSI beneficiaries who have 
representative payees manage their monthly benefits. Qualified 
organizations, known as ``fee-for-service'' organizations, may 
charge a fee for their services, which is collected from the 
beneficiary's payments. Since Fiscal Year 1998, SSA/OIG has 
opened over 1,350 representative payee investigations, which 
have led to over 300 convictions and identified over $7,500,000 
in fraud losses. This misuse by representative payees of their 
clients' benefits has created a need to improve protections for 
beneficiaries.

                         C. Legislative History

    On September 28, 2000, the Committee on Ways and Means 
ordered favorably reported to the House of Representatives H.R. 
4857, the ``Social Security Number Privacy and Identity Theft 
Prevention Act of 2000,'' as amended, by voice vote, with a 
quorum present.
    On July 20, 2000, the Subcommittee on Social Security 
ordered favorably reported to the full Committee H.R. 4857, the 
``Privacy and Identity Protection Act of 2000,'' as amended, by 
a voice vote, with a quorum present.
    The Subcommittee held hearings on May 9 and 11 and July 17, 
2000, and received testimony on the use and misuse of the SSN. 
The hearings included testimony from the Administration, the 
U.S. General Accounting Office, identity theft victims, privacy 
advocates, and representatives from State governments and the 
private sector.

                      II. EXPLANATION OF THE BILL


                      A. Short Title and Findings


                  1. Short Title (Sec. 1 of the bill)

    The short title of the bill is the ``Social Security Number 
Privacy and Identity Theft Prevention Act of 2000''.

                    2. Findings (Sec. 2 of the bill)

    Congress finds that SSN misuse gives rise to many illegal 
activities. The sale and purchase of SSNs often facilitates 
such activities by making SSNs easily accessible to the general 
public. Because the Federal government requires individuals to 
maintain SSNs for a variety of purposes, the Federal government 
should take steps to stem the abuse of SSNs. Congress finds 
that legislation should be enacted to restrict the sale and 
purchase of SSNs in circumstances that might facilitate 
unlawful conduct or result in unfair or deceptive practices.

  B. Provisions Relating to the Social Security Account Number in the 
                             Public Sector


  1. Restrictions on the sale and display of Social Security Account 
 Numbers by governmental agencies (Secs. 101-106 of the bill and Sec. 
                    205 of the Social Security Act)

Present law

    Generally Federal, State and local governments that collect 
SSNs for the administration of government programs and 
government-funded activities are often permitted to display 
and/or sell the numbers to third parties and to the general 
public. Government agencies may also purchase SSNs from third 
parties.

Explanation of provision

    Section 101 of the bill would prohibit Federal, State, and 
local government agencies (or third-party administrators) from 
selling SSNs or SSN derivatives. Exceptions are made for 
disclosures: (1) authorized by certain provisions of the 
Driver's Privacy Protection Act of 1994, (2) authorized by the 
Fair Credit Reporting Act, (3) made for law enforcement or 
national security purposes in accordance with regulations 
issued by the Attorney General of the United States, and (4) 
authorized by the Social Security Act.
    Section 102 of the bill would prohibit Federal, State, and 
local government agencies (or third-party administrators) from 
publicly displaying SSNs or SSN derivatives on Internet sites 
or on other material which is intended to be accessed by the 
general public. Exceptions are made for disclosures: (1) 
authorized by the Fair Credit Reporting Act and (2) made for 
law enforcement or national security purposes in accordance 
with regulations issued by the Attorney General of the United 
States.
    Section 103 of the bill would prohibit Federal, State, and 
local government agencies (or third-party administrators) from 
displaying SSNs on checks issued for payments or on any 
documents attached to or accompanying the check. The bill does 
not prohibit the appearance of SSN derivatives on checks.
    Section 104 of the bill would prohibit the display of SSNs 
or SSN derivatives on drivers' licenses, motor vehicle 
registrations, or other identification documents issued by 
State Departments of Motor Vehicles.
    Section 105 of the bill would prohibit Federal, State, and 
local governments agencies (or third-party administrators) from 
displaying SSNs or SSN derivatives on employee identification 
cards or military tags. The provision applies to identification 
cards which are continually and openly displayed by the 
individual.
    Section 106 of the bill would prohibit Federal, State, and 
local government agencies (or third-party administrators) from 
employing prisoners in any capacity which provides them with 
access to SSNs.

Reasons for change

    SSNs are widely available and easily accessible to the 
public. For example, SSNs are displayed on many government 
documents, such as marriage licenses, tax liens, bankruptcy 
files, and personal property records. All of these documents 
are available in the public domain, and many are available on 
the Internet. In addition, the SSN is often displayed on 
employee identification cards, checks, drivers' licenses and 
other documents which are not available to the general public, 
but are easily accessible by other individuals. Moreover, some 
government agencies sell the SSN to third parties who can 
subsequently sell or display the information to others.
    The wide availability of SSNs has raised serious concerns 
over privacy. Testimony before the Subcommittee on Social 
Security highlights the relative ease by which an individual 
can obtain another person's SSN and use the information to 
engage in SSN-related crimes, such as identity theft. 
Restricting the display and sale of SSNs will help to curb 
fraudulent activity by making it more difficult for criminals 
to access this personal information.
    Exceptions from some provisions of the bill are made for 
legitimate disclosures which benefit the public. For example, 
disclosure of the SSN is authorized by the Social Security Act 
for the administration of several programs, such as SSI, 
Medicare, Medicaid, Temporary Assistance for Needy Families, 
child support enforcement, unemployment insurance, and tax 
reporting. These uses help ensure the effective administration 
of programs under the Social Security Act. The bill would not 
preclude the Commissioner of Social Security from being 
reimbursed for the expense of data matches pursuant to such 
authorized programs. Disclosures in accordance with these uses 
will continue to be permissible. Limited exceptions are also 
made for certain commercial disclosures. In such cases, the SSN 
is used for legitimate purposes that benefit the public, and 
the information may not be subsequently sold or displayed to 
the general public.

Effective date

    Sections 101 through 105 are effective for sales and 
displays occurring after 3 years after enactment. Section 106 
is effective for prisoners hired after 1 year after enactment.

  2. Independent Verification of Birth Records Provided in Support of 
Applications for Social Security Account Numbers (Sec. 107 of the bill 
                and Sec. 205 of the Social Security Act)

Present law

    Title II of the Social Security Act requires SSA to 
establish the age, citizenship, alien status, and true identity 
of individuals applying for SSNs. Such verification is required 
only to the extent that the Commissioner of Social Security 
determines necessary. In addition, SSA must establish whether 
the applicant was previously assigned a SSN. Verification of 
documents provided in support of SSN applications is not 
required under present law.

Explanation of provision

    The provision would provide that the Commissioner of Social 
Security shall require independent verification of birth 
records provided in support of SSN applications, except for 
purposes of enumeration at birth.
    The provision also would require the Commissioner of Social 
Security and the Attorney General of the United States to 
jointly submit a report to Congress detailing the progress of 
SSA and the Immigration and Naturalization Service in 
implementing a process for enumeration of aliens at admission 
who have a need for SSNs.

Reason for change

    SSA is not required to verify the birth certificates 
presented by SSN applicants. Requiring such verification will 
make it more difficult for individuals to obtain fraudulent 
SSNs and to use such SSNs to commit crimes.

Effective date

    The provision applies to applications filed after 1 year 
after the date of enactment. The report must be submitted not 
later than 1 year after the date of enactment.

3. Report by General Accounting Office on Use by Governmental Agencies 
       as Personal Identification Numbers (Sec. 108 of the bill)

Present law

    The SSN is required, by law, for the administration of 
several programs and Federally funded activities. For example, 
Federal law requires or permits the use of the SSN for Federal 
income tax purposes, the Temporary Assistance for Needy 
Families program, applications for drivers' licenses or motor 
vehicle registrations, Medicaid eligibility, loan applications, 
child support enforcement, and boxing licenses. In addition, 
the SSN is used by government agencies for many other purposes 
that are neither required nor prohibited by law.
    The Privacy Act of 1974 applies to personal information 
maintained in a system of records by agencies in the executive 
branch of the Federal Government. It provides safeguards 
against an invasion of privacy through the misuse of records by 
agencies and provides that no Federal, State or local 
government agency may withhold a benefit from a person simply 
because the individual refuses to furnish his or her SSN 
(unless the disclosure is required by Federal statute or the 
disclosure was required by statute or regulation for a system 
of records, if both were adopted prior to January 1, 1975). It 
also requires that when Federal, State and local agencies 
request the individual's SSN, they must inform the individual 
if disclosure is mandatory or voluntary.

Explanation of provision

    The provision would require the Comptroller General of the 
United States to conduct a comprehensive study regarding the 
use of SSNs and SSN derivatives as personal identifiers by all 
levels and branches of Federal, State and local governments. 
The study shall include recommendations regarding the most 
effective means of minimizing such use beyond its original 
purpose.

Reason for change

    The use of the SSN has expanded far beyond its original 
purpose and far beyond purposes authorized by statute. The 
prevalent use of the SSN as a personal identifier makes the 
number a key component of many financial crimes, such as 
identity theft. Limiting the prevalent use of SSNs as a 
personal identifier would, therefore, reduce the opportunities 
for such crimes.
    The committee intends that this study shall include an 
assessment of the current uses that may result or have resulted 
in fraud; identification of effective privacy protection 
practices; review of the cost factors associated with 
transitioning to new systems of identification; review of the 
use of SSNs by third-party administrators providing services 
for public and private agencies; review of liability issues 
relative to the misuse of SSNs; a summary as to how SSNs are 
displayed in public view; and, a comparison of public and 
private sector utilization of SSNs for identification purposes. 
The study shall also include recommendations regarding the most 
effective means of minimizing such use beyond its original 
purpose.

Effective date

    The report is due not later than 1 year after enactment.

  C. Provisions Relating to the Social Security Account Number in the 
                             Private Sector


 1. Regulation of the Sale and Purchase of the Social Security Account 
    Number in the Private Sector (Sec. 201 of the bill) 1

Present law

    The Fair Credit Reporting Act (FCRA) (15 U.S.C. Sec. 1681 
et seq.), administered by the Federal Trade Commission (FTC), 
codifies the rules regarding how credit information is 
gathered, disclosed, and used. The FCRA is intended to protect 
the privacy and to promote the accuracy of information 
contained in credit reports. Under the law, credit reports may 
be disclosed and used only for certain legitimate purposes, 
which are outlined in the Act. However, personal identifying 
information found at the top of the credit report (which 
includes the SSN) is not considered part of the credit report 
and, therefore, is exempt from FCRA regulations.
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    The Gramm-Leach-Bliley Act (P.L. 106-102) prohibits 
financial institutions' from disclosing nonpublic personal 
information about consumers to non-affiliated third parties, 
unless the institution satisfies various disclosure and opt-out 
requirements.

Explanation of provision

    The provision would require the FTC to promulgate 
regulations restricting the sale or purchase of SSNs in the 
private sector. The definitions of ``sale'' and ``purchase'' 
would not include submitting the number to apply for government 
benefits, or transferring the number as part of a computer 
matching program defined in the law. Exceptions would be made 
for several purposes, including law enforcement, national 
security, public health, and in those circumstances where the 
individual has voluntarily provided written consent. Violations 
would be enforced criminally by the Department of Justice or 
civilly under the Federal Trade Commission Act regarding unfair 
or deceptive acts or practices. In addition, the attorney 
general of a State may bring a civil action on behalf of its 
residents under the FTC regulations.

Reason for change

    The SSN is used in the private sector to facilitate a wide 
variety of legitimate business transactions. For example, 
private-sector SSN use helps improve access to financial and 
credit services, reduces administrative costs, and improves 
record-keeping so consumers can be identified and contacted 
accurately. However, the pervasive sale and purchase of SSNs in 
the private sector facilitates SSN fraud by making SSNs easily 
accessible to the general public. In addition, Americans are 
increasingly concerned that the SSNs, which they disclose for 
one purpose, are subsequently sold to third parties and used 
for other purposes without their knowledge or consent. 
Consequently, the law should restrict the sale and purchase of 
SSNs in the private sector in order to protect privacy and stem 
abuse. However, such restrictions should focus to the greatest 
extent possible on ensuring that the SSN will not be used to 
commit or facilitate fraud, deception, or crime and on 
preventing undue risk of bodily, emotional, or financial harm 
to individuals, without interfering with legitimate uses of the 
SSN.

Effective date

    Regulations are due one year after the date of enactment 
and take effect 30 days after final issuance.

 2. Refusal to do Business Without Receipt of Social Security Account 
Number Considered Unfair or Deceptive Act or Practice (Sec. 202 of the 
                           bill) 2

Present law

    No provision.
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Explanation of provision

    The provision would provide that the denial of service to 
an individual who refuses to provide his or her SSN will be 
considered an unfair or deceptive act or practice under the 
Federal Trade Commission Act.

Reason for change

    According to the General Accounting Office (Social 
Security: Government and Commercial Use of the Social Security 
Number is Widespread, Report #HEHS-99-28), there is no law 
prohibiting the denial of services or goods by the private 
sector if an individual declines to provide his or her SSN, 
even if there appears to be no rational basis for requiring the 
SSN. Individuals are warned that they should not carry their 
SSN cards, yet businesses routinely request the number in order 
to complete transactions. Because of the considerable potential 
for SSN misuse and the consequences of such misuse, individuals 
should not be required to disclose their SSN to conduct routine 
business transactions. However, it is not the intent of the 
provision to prohibit businesses from requesting the SSN for 
purposes specifically required by law.

Effective date

    Date of enactment.

3. Confidential Treatment of Credit Header Information (Sec. 203 of the 
    bill and Sec. 603 of the Fair Credit Reporting Act) 3

Present law

    In general, consumer reports contain two kinds of 
information. The ``credit header,'' which is listed at the top 
of the consumer report contains identifying information, such 
as the individual's, name, address, date of birth, marital 
status, mother's maiden name, and SSN among other things. The 
``credit report'' lists the individual's credit information and 
the timeliness of payments. Credit reports may also contain 
public record information, such as tax liens, court judgements 
and bankruptcies.
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Services.
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    The FCRA regulates the disclosure and use of an 
individual's credit report. This information may be disclosed 
only for certain legitimate purposes, which are outlined in the 
FCRA. According to FTC rulings, the definition of ``credit 
report'' contained in the FCRA does not include credit header 
information. As a result, this identifying information is 
exempt from FCRA regulations.

Explanation of provision

    The provision would amend the definition of ``consumer 
report'' under the FCRA to include the SSN, thus subjecting the 
SSN to FCRA regulations.

Reason for change

    Credit header information contains an individual's SSN and 
other unique identifying information. This information does not 
receive the same privacy protections as the rest of the credit 
report. Consequently, organizations who collect this personal 
information may make it available to the public or sell it 
without an individual's knowledge or consent. The information 
may subsequently be used for inappropriate purposes. The SSN 
should receive the same protections as other information in the 
credit report which is regulated by the FCRA. The provision is 
not intended to expand the scope of the FCRA's definition of 
consumer reporting agency relative to current law.

Effective date

    90 days after the date of enactment.

                             D. Enforcement


  1. Criminal and Civil Monetary Penalties and Orders of Restitution 
(Secs. 301-304 of the bill and Secs. 208, 1129, 1129A, 807, and 1632 of 
                        the Social Security Act)

Present law

    The Social Security Act provides criminal penalties for: 
(1) providing false information to obtain a SSN, (2) providing 
false information to obtain benefits, (3) using a SSN obtained 
through false information, (4) falsely represents a SSN to be 
theirs with intent to deceive, (5) altering a SSN card, (6) 
counterfeiting a SSN card, (7) buying or selling a SSN card, 
(8) possessing a SSN card with intent to sell or alter it, and 
(9) disclosing, using, or compelling the disclosure of the SSN 
of any person in violation of any Federal law. Present law does 
not permit trial judges to order restitution if an individual 
is convicted of a violation.
    The Social Security Act also authorizes SSA to impose civil 
monetary penalties for any person who makes a false statement 
of a material fact, or omits a material fact while providing a 
statement, for use in determining eligibility for, or the 
amount of, Social Security or Supplemental Security Income 
(SSI) benefits.

Explanation of provision

    Sections 301 and 302 of the bill would provide for criminal 
penalties of up to five years in prison and fines of up to 
$250,000 for the: (1) offer to acquire, for a fee, an 
additional SSN for an individual, (2) violation of sections 101 
through 106 of Title I of this legislation by an officer, 
employee, or agent of any Federal, State or local government 
agency, and (3) sale or purchase of SSNs as those terms are 
defined in sections 208(d)(2) and (3) of the Social Security 
Act.
    Section 303 of the bill would authorize SSA to impose civil 
monetary penalties, in addition to any other penalties that 
apply, of up to $5,000 for each of the following violations: 
(1) omission of a statement that the individual should have 
made to SSA in connection with determining eligibility for, or 
the amount of benefits; (2) using a SSN obtained through false 
information; (3) falsely represents a SSN to be theirs; (4) 
alters a Social Security card; (5) buying or selling a SSN 
card; (6) counterfeiting a Social Security card; (7) 
disclosure, use, sale, or purchase of another person's SSN in 
violation of any Federal law; (8) offer to acquire, for a fee, 
an additional SSN for an individual; and (9) violation of 
sections 101 through 106 of this Act by improper sale of SSNs 
by an officer, employee, or agent of a Federal, State or local 
government agency.
    Section 304 of the bill would allow trial judges to order 
restitution for violations of the Social Security Act. Amounts 
recovered will be credited to special account in the Treasury 
and will be available to defray expenses associated with 
carrying out Titles II, VIII, and XVI of the Social Security 
Act.

Reason for change

    SSN misuse can result in considerable costs for the 
government, the private sector, and individuals who are victims 
of fraud. In many cases, the costs of SSN misuse extend beyond 
monetary losses. Because of the gravity of SSN misuse, it is 
appropriate to provide criminal and civil monetary penalties 
for violations of the law relating to SSN misuse.
    Providing trial judges with the ability to impose 
restitution will enhance trial judges' ability to further 
penalize offenders and further provide the opportunity for the 
Social Security programs to be compensated for losses resulting 
from SSN misuse.

Effective date

    Sections 301 through 304 are effective for violations 
occurring after enactment, except that penalties for violations 
in connection with Sections 101 through 106 of Title I of this 
Act shall apply with respect to violations occurring on or 
after the applicable effective date of each section.

2. Law Enforcement Authority for the Office of the Inspector General of 
 the Social Security Administration (Sec. 305 of the bill and Sec. 702 
                      of the Social Security Act)

Present law

    Since September 1995, SSA/OIG Special Agents have been 
designated as Special Deputy United States Marshals pursuant to 
a Memorandum of Understanding with the Department of Justice 
(DoJ). Under the Memorandum of Understanding, the designated 
Special Agents have law enforcement authority.

Explanation of provision

    This provision would codify the current Memorandum of 
Understanding between DoJ and SSA/OIG, subject to guidelines 
approved by the Attorney General of the United States. The 
provision also allows the Inspector General to cross-designate 
State and local law enforcement officers to assist SSA/OIG 
Special Agents in investigations as needed.

Reason for change

    Designation as Special Deputy United States Marshals allows 
SSA/OIG to properly investigate allegations of criminal 
violations of the programs and operations of SSA. On July 19, 
2000, DoJ testified before the United States Senate Committee 
on Governmental Affairs that effective January 31, 2001, this 
renewable deputation would no longer be provided due to a lack 
of resources for the United States Marshals Service.
    In addition, designation of State and local law enforcement 
officers to assist SSA/OIG Special Agents in investigating 
criminal allegations of fraud, is particularly important due to 
the unique Federal/State relationship in administering the 
Social Security disability program. Such designation would 
assist SSA/OIG to better coordinate investigative efforts with 
State law enforcement.

Effective date

    Effective upon the approval of the guidelines by the 
Attorney General, which shall be issued within 1 year after the 
date of enactment.

            E. Provisions Relating to Representative Payees


      1. Authority to Reissue Benefits Misused by Organizational 
 Representative Payees (Sec. 401 of the bill and Secs. 205, 807, 1613, 
                  and 1631 of the Social Security Act)

Present law

    The Social Security Act requires the re-issuance of 
benefits in cases of misuse by an individual or organizational 
representative payee when there has been a finding by the 
Commissioner of Social Security of negligent failure by the 
Commissioner to investigate or monitor the payee.

Explanation of provision

    The provision would require the Commissioner of Social 
Security to re-issue benefits under Titles II, VIII, or XVI 
whenever an individual representative payee serving 15 or more 
beneficiaries, or an organizational representative payee, is 
found to have misused a beneficiary's funds.
    The provision defines misuse as any case in which a 
representative payee converts the benefits entrusted to his or 
her care for purposes other than the ``use and benefit'' of the 
beneficiary and requires the Commissioner to define ``use and 
benefit'' in regulation. However, the Committee does not intend 
for the definition of misuse to include a conversion of 
benefits that is not exclusively for the ``use and benefit'' of 
the beneficiary. For instance, the Committee does not envision 
misuse to include cases in which a representative payee uses 
the benefits entrusted to his or her care to help pay the rent 
on an apartment that he or she and the beneficiary share.

Reason for change

    Within recent years there have been a number of highly-
publicized cases involving organizational representative payees 
that have misused large sums of monies paid to them on behalf 
of the Social Security and SSI beneficiaries they represent. In 
most instances, these organizations operated as criminal 
enterprises bent not only on stealing funds from beneficiaries, 
but also on carefully concealing the evidence of their 
wrongdoing. These illegal activities went undetected until 
large sums had been stolen. As a result, the affected 
beneficiaries may never be repaid, or may be repaid only when 
the representative payee who committed the misuse makes 
restitution to SSA.
    Requiring SSA to reissue benefit payments to the victims of 
such misuse protects beneficiaries served by organizational 
representative payees. These beneficiaries are among the most 
vulnerable because they have no family members or friends who 
are willing or able to protect their interests by managing 
their benefits.
    With respect to individual representative payees, the 
provision applies only to representative payees serving 15 or 
more beneficiaries. Limiting the provision in this manner is 
justified because the aggregate amount that can be misused in 
cases involving representative payees serving many 
beneficiaries is much greater.
    Moreover, extending the provision to cases involving 
individual representative payees serving fewer beneficiaries 
may lead to fraudulent claims of misuse. These claims, which 
often turn on information available only from close family 
members, would be difficult to disprove. Similarly, extension 
of this provision to these cases could potentially encourage 
misuse or poor money management by these individual 
representative payees if they believed that the beneficiary 
could eventually be paid a second time by SSA.

Effective date

    The provision is effective for misuses occurring on or 
after January 1, 1995, as determined by the Commissioner.

2. Oversight of Representative Payees (Sec. 402 of bill and Secs. 205, 
                807 and 1631 of the Social Security Act)

Present law

    Present law requires nongovernmental fee-for-service 
organizational representative payees to be licensed or bonded. 
However, there is no provision requiring the yearly submission 
of proof of licensing or bonding or the submission of 
independent audits. In addition, there is no provision 
requiring periodic onsite reviews of organizational 
representative payees (other than the accountability monitoring 
done for State institutions that serve as representative 
payees).

Explanation of provision

    The provision would require nongovernmental fee-for-service 
organizational representative payees to be both licensed and 
bonded, provided that licensing is available in the State. In 
addition, representative payees must submit yearly proof of 
bonding and licensing, as well as any available independent 
audit.
    The Commissioner of Social Security would be required to 
conduct periodic onsite reviews of certain representative 
payees: (1) a person who serves as a representative payee to 15 
or more beneficiaries, (2) nongovernmental fee-for-service 
representative payees (as defined in titles II and XVI) or, (3) 
any other agency that serves as the representative payee to 50 
or more beneficiaries.

Reason for change

    Strengthening the requirements for representative payees 
would add further safeguards to protect beneficiaries' funds. 
State licensing provides for some oversight by the State into 
the fee-for-service organization's business practices, and 
bonding provides some assurances that a surety company has 
investigated the organization and approved it for the level of 
risk associated with the bond for all community based non-
profit social service agencies serving as representative 
payees.
    On-site periodic visits should be conducted regularly, and 
to the degree possible, appropriate auditing and accounting 
standards be utilized in conducting such reviews.

Effective date

    Effective the first day of the 13th month after enactment, 
except that the periodic review requirement would be effective 
upon enactment.

     3. Disqualification from Service as Representative Payee upon 
 Conviction of Offenses Resulting in Imprisonment for more than 1 year 
    (Sec. 403 of the bill and Secs. 205, 807 and 1631 of the Social 
                             Security Act)

Present law

    Individuals are disqualified from service as representative 
payees upon conviction of criminal violations under the Social 
Security Act.

Explanation of provision

    The provision would disqualify an individual from serving 
as a representative payee if he or she has been convicted of an 
offense resulting in more than one year of imprisonment, unless 
the Commissioner of Social Security determines that such 
certification would be appropriate notwithstanding such 
conviction.

Reason for change

    Present law does not disqualify individuals from serving as 
representative payees if they have been convicted of criminal 
offenses outside of the Social Security Act. The Committee 
believes that allowing convicted persons to serve as 
representative payees, especially those convicted of criminal 
fraud offenses, increases the likelihood of mismanagement or 
abuse of beneficiaries' funds.

Effective date

    Effective the first day of the 13th month beginning after 
the date of enactment.

 4. Fee Forfeiture in Case of Benefit Misuse by Representative Payees 
  (Sec. 404 of bill and Secs. 205 and 1631 of the Social Security Act)

Present law

    Certain organizational representative payees are authorized 
to collect a fee for their services. This fee is deducted from 
their clients' benefit payments.

Explanation of provision

    The provision would require representative payees to 
forfeit their fee from the beneficiary's benefits for the 
months during which the representative payee misused the funds, 
as determined by the Commissioner of Social Security or a court 
of competent jurisdiction.

Reason for change

    Representative payees who misuse their clients' funds are 
not required to forfeit the fees they collect. The Committee 
believes that payees who misuse their clients' funds are not 
properly performing the service for which the fee was paid. As 
a result, the payee should be required to forfeit these fees. 
Permitting the organization to retain the fees is tantamount to 
rewarding the payee for violating his or her responsibility to 
use the benefits for an individual's needs.

Effective date

    Applies to any month involving benefit misuse by a 
representative payee where the Commissioner of Social Security 
makes the determination of misuse after December 31, 1999.

5. Liability of Representative Payees for Misused Benefits (Sec. 405 of 
    the bill and Secs. 205, 807 and 1631 of the Social Security Act)

Present law

    No provision.

Explanation of provision

    This provision would provide that misused benefits by a 
nongovernmental representative payee shall be treated as 
overpayments to the representative payee, subject to current 
overpayment recovery authorities. Any recovered benefits not 
reissued to the beneficiary pursuant to section 401 of this 
legislation would be reissued under this provision to the 
beneficiary or their alternate representative payee, up to the 
total amount misused.

Reason for change

    Although SSA has been provided with expanded authority to 
recover overpayments (such as tax refund offsets, referral to 
contract collection agencies, notifying credit bureaus, and 
administrative offsets of future federal benefit/payments), 
these tools cannot be used to recoup benefits misused by a 
representative payee. Treating misused benefits as overpayments 
to the representative payee would provide SSA with additional 
means for recovering the misused payments. The change would 
enhance protections for all beneficiaries with payees, not just 
those with organizational payees.

Effective date

    Applies to benefit misuse by a representative payee in any 
case where the Commissioner of Social Security makes the 
determination of misuse after December 31, 1999.

   6. Extension of Civil Monetary Penalty Authority with Respect to 
Representative Payees (Sec. 406 of the bill and Sec. 1129 of the Social 
                             Security Act)

Present law

    The Social Security Act authorizes SSA to impose civil 
monetary penalties for any person who makes a false statement 
of a material fact, or omits a material fact while providing a 
statement to SSA, for use in determining Social Security or SSI 
benefits, or to affect the amount of such benefits.

Explanation of provision

    This provision would authorize SSA to impose a civil 
monetary penalty for offenses involving misuse of Social 
Security, Title VIII, or SSI benefits received by a 
representative payee on behalf of another individual. The 
penalty equals up to $5,000 for each violation. In addition, 
the representative payee shall be subject to an assessment in 
lieu of damages sustained by the United States resulting from 
the conversion, of not more than twice the amount of the 
misused payments.

Reason for change

    Representative payees who misuse beneficiaries' funds are 
subject to criminal penalties under current law. Providing 
civil monetary penalties (in addition to SSA's present 
authority permitting recovery of misused funds) would provide 
SSA with an additional means of addressing misuse by 
representative payees.

Effective date

    Applies to violations occurring after the date of 
enactment.

     7. Authority to Redirect Delivery of Benefit Payments When a 
Representative Payee Fails to Provide Required Accounting (Sec. 407 of 
    the bill and Secs. 205, 807 and 1631 of the Social Security Act)

Present law

    The Social Security Act requires representative payees to 
submit an accounting report to the Commissioner of Social 
Security detailing how benefit payments received on a client's 
behalf were used. The report is required at least annually, but 
may be requested by the Commissioner at any time if the 
Commissioner has reason to believe the representative payee is 
misusing benefits.

Explanation of provision

    The provision would provide SSA with the authority to 
redirect payments of Social Security, Title VIII, and SSI 
benefits to local Social Security field offices if a 
representative payee fails to provide an annual accounting of 
benefits report. The Commissioner would be required to provide 
proper notice and the opportunity for a hearing prior to 
redirecting benefits.

Reason for change

    Accounting reports are an important means of monitoring the 
activities of representative payees and establishing 
accountability. Failure to submit these reports to the 
Commissioner makes it more difficult for the Commissioner to 
detect fraud and misuse. As a result, steps should be taken to 
protect beneficiaries when representative payees fail to submit 
their reports in a timely manner. Redirecting benefit payments 
to the field office, and notifying the payee of the 
possibility, would provide an effective tool for increasing the 
number of payees who return the annual accounting form.

Effective date

    180 days after enactment.

               F. Miscellaneous and Technical Amendments


1. Technical Correction Respecting Responsible Agency Head (Sec. 501 of 
           the bill and Sec. 1143 of the Social Security Act)

Present law

    Section 1143 of the Social Security Act requires the 
Secretary of Health and Human Services to provide individuals 
with periodic Social Security statements.

Explanation of provision

    The provision would delete all references to the 
``Secretary of Health and Human Services'' found in Section 
1143 of the Social Security Act and replaces them with the 
``Commissioner of Social Security''.

Reason for change

    When the Congress enacted the Social Security Independence 
and Program Improvements Act of 1994, it established the Social 
Security Administration as an independent agency within the 
Executive Branch of the Federal Government. All duties relating 
to the administration of Social Security and SSI benefits were 
transferred from the Secretary of Health and Human Services to 
the Commissioner of Social Security. This transfer of duties 
was not incorporated into Section 1143 of the Social Security 
Act. This provision remedies the oversight.

Effective date

    Date of enactment.

2. Technical Correction Respecting Domestic Employment (Sec. 502 of the 
 bill and Secs. 3121 of the Internal Revenue Code of 1986 and Sec. 209 
                      of the Social Security Act)

Present law

    Present law is ambiguous concerning the tax treatment of 
domestic service performed on a farm. Domestic employment on a 
farm appears to be subject to two separate coverage thresholds 
(one for agricultural labor and another for domestic 
employees).

Explanation of provision

    This provision would remove references to domestic 
employment from the definition of agricultural employment. The 
definition of domestic employment will specify that domestic 
employment includes domestic service performed on a farm.

Reason for change

    Prior to 1994, domestic service on a farm was treated as 
agricultural labor and was subject to the coverage threshold 
for agricultural labor. In 1994, when Congress amended the law 
with respect to domestic employment, the intent was that 
domestic employment on a farm would be subject to the coverage 
threshold for domestic employees instead of agricultural labor. 
However, the language is unclear and it appears that farm 
domestics are subject to both thresholds.

Effective date

    Date of enactment.

 3. Technical Corrections of Outdated References (Sec. 503 of the bill 
   and Secs. 202 and 211 of the Social Security Act and 3102 of the 
                     Internal Revenue Code of 1986)

Present law

    No provision.

Explanation of provision

    This provision would conform references in the law. For 
example, section 3102(a) of the Internal Revenue Code 
(pertaining to the deduction of the Social Security taxes from 
a worker's wages) still refers to a 20-day work test for Social 
Security coverage of agricultural labor. However, the 20-day 
work test was deleted from the Social Security Act in 1987.

Reason for change

    Over the years, provisions in the Social Security Act, the 
Internal Revenue Code and other related laws have been deleted, 
re-designated or amended. However, necessary conforming changes 
have not always been made. Consequently, Social Security law 
contains some outdated references.

Effective date

    Date of enactment.

 4. Technical Corrections Relating to Retirement Benefits of Ministers 
     (Sec. 504 of the bill and Sec. 211 of the Social Security Act)

Present law

    Certain retirement benefits received by ministers and 
members of religious orders (such as the rental value of a 
parsonage or parsonage allowance) are not subject to Social 
Security payroll taxes under the Internal Revenue Code. 
However, they are treated as net earnings from self-employment 
under the Social Security Act for the purpose of acquiring 
insured status and calculating Social Security benefits.

Explanation of provision

    This provision would amend the Social Security Act to 
exclude for Social Security benefit purposes certain benefits 
(including the rental value of a parsonage or parsonage 
allowance) received by retired ministers or members of 
religious orders.

Reason for change

    Some types of income are not subject to Social Security 
payroll taxes, but they are used to earn insured status under 
Social Security and to compute benefits under the Social 
Security program. Thus, the income is not treated in a uniform 
manner. The provision is needed to conform the Social Security 
Act to the Internal Revenue Code with respect to such income.

Effective date

    Effective for years beginning before, on, or after December 
31, 1994.

 5. Requirements Relating to Offers to Provide for a Fee a Product or 
       Service Available Without Charge from the Social Security 
   Administration (Sec. 505 of the bill and Sec. 1140 of the Social 
                             Security Act)

Present law

    Section 1140 of the Social Security Act prohibits or 
restricts various activities involving the use of SSA symbols, 
emblems, or references. It also provides for the imposition of 
civil monetary penalties with respect to violations of the 
Section.

Explanation of provision

    The provision would amend Section 1140 by adding a 
mandatory requirement that persons or companies include in 
their solicitations a statement that services which they 
provide for a fee are available directly from SSA free of 
charge. The statements would be required to comply with 
standards promulgated by the Commissioner of Social Security 
with respect to their content, placement, visibility, and 
legibility.

Reason for change

    Several individuals or companies offer Social Security 
services for a fee even though the same services are available 
directly from SSA free of charge. Oftentimes, customers are not 
informed that the service may be obtained for free from SSA. 
These practices mislead and deceive senior citizens, newlyweds, 
new parents, and other individuals seeking services from SSA. 
The provision is needed to protect these consumers.

Effective date

    Applies to offers of assistance made after the sixth month 
ending after the Commissioner of Social Security promulgates 
regulations prescribing notice standards.

   6. Funding for Demonstration Projects Providing for Reductions in 
 Disability Insurance Benefits Based on Earnings (Sec. 506 of the bill 
and Sec. 302 of the Ticket to Work and Work Incentives Improvement Act 
                                of 1999)

Present law

    The Ticket to Work and Work Incentives Improvement Act 
requires SSA to conduct a demonstration project regarding the 
effects of gradually reducing Social Security Disability 
Insurance benefits by $1 for every $2 in earnings over a level 
determined by the Commissioner. The law is ambiguous regarding 
appropriations for the demonstration project.

Explanation of provision

    The provision would clarify that the administrative costs 
associated with the demonstration projects will be appropriated 
annually, to the extent or in the amounts provided in advance 
in appropriation Acts. The cost of paying increased benefits 
will not be appropriated.

Reason for change

    The demonstration projects required under present law will 
increase administrative costs for SSA and will also increase 
benefit payments to disabled beneficiaries taking part in the 
projects. The law is unclear regarding the appropriation of 
funds to cover these increased costs.

Effective date

    Date of enactment.

7. Optional Federal Administration of State Recognition Payments (Sec. 
       507 of the bill and Title VIII of the Social Security Act)

Present law

    Title VIII of the Social Security Act provides for Federal 
payments to certain World War II U.S. veterans, including 
Filipino veterans, who were eligible for SSI in December 1999 
and who now reside outside of the United States.

Explanation of provision

    The provision would provide the Commissioner of Social 
Security with the authority to enter into an agreement with a 
State to make State Recognition payments to qualified 
individuals eligible for Title VIII benefits on the State's 
behalf.

Reason for change

    Title XVI of the Social Security Act provides for State 
supplementary payments to individuals under the SSI program. 
These payments are funded by the States. However, SSA may enter 
into an agreement with a State to make these supplementary 
payments on the State's behalf. Title VIII of the Social 
Security Act provides for Federal payments to certain qualified 
veterans and at least one State has established a program to 
provide State recognition payments to Filipino veterans 
eligible for Title VIII. The Commissioner does not have the 
authority to administer these payments on a State's behalf. The 
provision provides the Commissioner with this authority under 
Title VIII comparable to the Title XVI authority.

Effective date

    Date of enactment.

  8. Military Wage Credits (Sec. 508 of the bill and Sec. 229 of the 
                          Social Security Act)

Present law

    Active duty military service members currently receive 
deemed military wages credits of $100 for every $300 of 
earnings subject to a maximum credit of $1,200 annually. 
Credits are not granted if earnings are at or above the maximum 
taxable wage base ($76,200 in 2000). These credits are used to 
determine the individual's insured status and benefit payments. 
The Department of Defense (DoD) is required to reimburse to the 
Social Security trust funds an amount equal to the combined 
employer and employee share of the payroll tax contribution on 
the amount of deemed wage credits that are given.

Explanation of provision

    The provision would eliminate deemed military wage credits 
for active duty military service, except for earnings below the 
grade of E-6 in the case of service members who die or become 
disabled before attainment of age 47 if, at the time the wage 
credits are used in the computation, the service member had 
fewer than 6 years of military service.

Reason for change

    The DoD is currently developing proposals to reconfigure 
the total benefits package now available to military service 
personnel. The provision would eliminate military wage credits 
for certain active duty military service members, allowing DoD 
to reapply funds to other essential military pay and retirement 
initiatives with minimal impact on the service member's future 
Social Security benefit. The provision would protect those 
service members who still need the benefit protection provided 
by deemed military wage credits.

Effective date

    Effective for deemed military wage credits that would be 
credited to a worker's earnings record for 2002 or later.

                      III. VOTES OF THE COMMITTEE

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the following statements are made 
concerning the votes of the Committee on Ways and Means in its 
consideration of the bill, H.R. 4857.

                       Motion to Report the Bill

    The bill, H.R. 4857, as amended, was ordered favorably 
reported by a voice vote (with a quorum being present).

                     IV. BUDGET EFFECTS OF THE BILL


              A. Committee Estimates on Budgetary Effects

    In compliance with clause 3(d)(2) of rule XIII of the Rules 
of the House of Representatives, the following statement is 
made concerning the effects on the budget of the bill, H.R. 
4857, as reported. The Committee agrees with the estimate 
provided by CBO which is below.

    B. Statement Regarding New Budget Authority and Tax Expenditures


Budget authority

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee states that the 
bill involves no new increased budget authority. The bill 
increases off-budget direct spending from Social Security Trust 
Funds, however, the Social Security Administration's Office of 
the Chief Actuary has determined that such spending will have a 
negligible effect on the long-range Social Security actuarial 
balance. The bill has no effect on revenues.

      C. Cost Estimate Prepared by the Congressional Budget Office

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, requiring a cost estimate 
prepared by the Congressional Budget Office (``CBO''), the 
following statement by CBO is provided.

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, October 6, 2000.
Hon. Bill Archer,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4857, the Social 
Security Number Privacy and Identity Theft Prevention Act of 
2000.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Sheila 
Dacey and Kathy Ruffing.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

H.R. 4857--Social Security Number Privacy and Identity Theft Prevention 
        Act of 2000

    Summary: H.R. 4857 would address the increasing use of the 
Social Security number (SSN) for personal identification by 
limiting the sale, purchase, display, and uses of the number. 
It would tighten procedures for obtaining an SSN and impose or 
stiffen criminal and civil penalties for misuse. H.R. 4857 
would also strengthen the supervision of representative payees 
(people who receive benefit checks belonging to others, such as 
children or mentally-impaired adults) and make several, mostly 
technical, amendments to the Social Security Act. In addition, 
the bill would eliminate the payment of Social Security and 
Medicare Hospital Insurance (HI) benefits related to non-cash 
compensation earned by members of the armed forces, and the 
associated annual payment from the Department of Defense (DoD) 
to the Social Security and Medicare trust funds.
    CBO estimates that enacting H.R. 4857 would increase direct 
spending by $2 million in 2001 and by negligible amounts 
thereafter. It would also lead to slight increases in receipts 
from penalties. Because H.R. 4857 would affect direct spending 
and receipts, pay-as-you-go procedures would apply.
    H.R. 4857 would also affect discretionary spending. DoD 
would save up to $400 million annually that it now pays to the 
Social Security and Hospital Insurance trust funds. In 
addition, the bill would cause the Social Security 
Administration (SSA) and the Federal Trade Commission (FTC) to 
incur a total of about $30 million a year in additional 
enforcement costs.
    H.R. 4857 contains a number of intergovernmental mandates 
as defined in the Unfunded Mandates Reform Act (UMRA), 
including limitations on the sale, display, and use of Social 
Security numbers by state or local governments. CBO estimates 
that the aggregate costs of those mandates would exceed the 
threshold established in UMRA ($55 million in 2000), adjusted 
annually for inflation) in at least one of the next five years.
    The bill contains several private-sector mandates on 
businesses that now use Social Security numbers. CBO estimates 
that the costs of complying those mandates would significantly 
exceed the threshold for private-sector mandates specified in 
UMRA ($109 million in 2000, adjusted annually for inflation).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 4857 is shown in Table 1. This 
legislation affects multiple budget functions--chiefly 050 
(national defense), 600 (income security), 650 (Social 
Security), and 950 (undistributed offsetting receipts).
    Basis of estimate: CBO assumes that H.R. 4857 will be 
enacted in October 2000, and that the authorized amounts will 
be appropriated at the beginning of each fiscal year.

Direct spending and revenues

    Titles I, II, and III. The first two titles address the 
uses of the SSN in the public sector (federal, state, and local 
governments) and private sectors, respectively; the third deals 
with enforcement. Several provisions could affect the federal 
budget. Requiring birth records from all applicants for SSNs--
as is already automatic in the hospital-based Enumeration at 
Birth program--and granting more law enforcement powers to the 
Inspector General of SSA, for example, might curtail fraudulent 
payments of benefits. Allowing SSA to impose civil monetary 
penalties and collect court-ordered restitution in cases of SSN 
fraud or misuse could boost governmental receipts. Similarly, 
allowing the Federal Trade Commission (FTC) to impose civil 
monetary penalties when businesses violate the new law would 
also raise receipts. Based on information from SSA and FTC 
staffs, CBO estimates that such budgetary effects would be 
negligible in the 2001-2010 period.
    Title IV. The fourth title would tighten SSA's oversight of 
representative payees. About 5 million recipients of Social 
Security benefits (2 million adults and 3 million children) and 
2 million recipients of Supplemental Security Income (SSI) 
benefits (1 million adults and 1 million children) collect 
these payments through representative payees. Typically, a 
family member serves as a representative payee. But especially 
for adult recipients, the payee may be a social service agency, 
an institution, or a similar organization. SSA monitors 
representative payees by requiring annual accounting reports 
and by conducting on-site reviews every three years of certain 
representative payees who serve a large number of 
beneficiaries. Title IV would direct SSA to certify annually 
that social service agencies meet licensing and bonding 
requirements and to conduct periodic on-site inspections of 
more representative payees. It would enhance SSA's ability to 
recover misused funds and to impose civil monetary penalties.

           TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 4857
------------------------------------------------------------------------
                               By fiscal year, in millions of dollars--
                             -------------------------------------------
                               2001     2002     2003     2004     2005
------------------------------------------------------------------------
                   CHANGES IN DIRECT SPENDING OUTLAYS

    Title IV. Provisions
 Relating to Representative
           Payees
OASDI benefits (off-budget).       1    (\1\)    (\1\)    (\1\)    (\1\)
SSI benefits (on-budget)....       1    (\1\)    (\1\)    (\1\)    (\1\)
Other Titles................   (\1\)    (\1\)    (\1\)    (\1\)    (\1\)
                             -------------------------------------------
      Total, direct spending       2    (\1\)    (\1\)    (\1\)    (\1\)
                             ===========================================
              CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Title I. Provisions Relating
   to the Social Security
Account Number in the Public
           Sector
Verify birth records (OASDI,
 off-budget):
    Estimated authorization        0       18       19       19       20
     level..................
    Estimated outlays.......       0       16       17       19       19
    Title II. Provisions
   Relating to the Social
 Security Account Number in
     the Private Sector
FTC enforcement:
    Estimated authorization        3        3        3        3        3
     level..................
    Estimated outlays.......       3        3        3        3        3
    Title IV. Provisions
 Relating to Representative
           Payees
OASDI (off-budget):
    Estimated authorization        0        7        7        8        8
     level..................
    Estimated outlays.......       0        7        7        8        8
SSI (on-budget):
    Estimated authorization        0        3        3        3        3
     level..................
    Estimated outlays.......       0        3        3        3        3
 Title V. Miscellaneous and
    Technical Amendments
Department of Defense:
    Estimated authorization        0     -397     -353     -357     -360
     level..................
    Estimated outlays.......       0     -397     -353     -357     -360
    Total:..................
        Estimated                  0     -366     -321     -325     -326
         authorization level
        Estimated outlays...       0     -368     -323     -325     -327

                           CHANGES IN REVENUES

Estimated Revenues..........   (\1\)    (\1\)    (\1\)    (\1\)    (\1\)
         Memorandum:
Effect on outlays for
 offsetting receipts from
 eliminating
 intragovernmental payments
 by DoD:
    OASDI (off-budget)......       0      321      285      289      291
    HI (on-budget)..........       0       76       68       68       69
------------------------------------------------------------------------
\1\ Less than $500,000.

Note.--OASDI=Old-Age, Survivors, and Disability Insurance;
  SSI=Supplemental Security Income; HI=Hospital Insurance; FTC=Federal
  Trade Commission; DoD=Department of Defense

    Most provisions of Title IV would have negligible effects 
on benefit payments or recoveries. Section 401, however, would 
direct SSA to pay beneficiaries any amounts that had been 
misused by an organizational representatives payee, even if 
there had been no negligence on SSA's part. (Currently, such 
claimants must show negligence by SSA.) Representative payees 
misuse about $3 million in benefits each year. Only about 10 
percent of payees are organizations that would be affected by 
this provision, so CBO assumes that it would cost about 
$300,000 a year. Because the provision would be retroactive to 
January 1, 1995, CBO estimates that it would cost $2 million in 
2001 and $5 million over the 2001-2010 period.
    Title V. The fifth title chiefly contains technical 
clarifications or minor changes to the Social Security Act. One 
of those provisions would have a small budgetary effect.
    Members of the armed services receive cash pay plus other 
compensation such as housing, food, and uniform allowances. 
Under current law, they may get credit for an extra $1,200 of 
earnings each year toward the calculation of their eventual 
Social Security benefits to reflect that noncash pay. Each 
year, DoD pays about $300 million to the Old-Age, Survivors, 
and Disability Insurance trust funds and about $75 million to 
the Hospital Insurance (Medicare Part A) trust fund to pay for 
those extra credits. H.R. 4857 would eliminate both the DoD 
payment and the resulting benefits except in very isolated 
cases of early death or disability. CBO estimates that the 
savings in benefit payments over the 2002-2010 period would be 
negligible.

Spending subject to appropriation

    Based on information from SSA, CBO judges that H.R. 4857 
would cost the agency about $30 million a year in 
administrative costs. Verifying birth records of roughly 1.7 
million people each year who apply for an SSN outside of the 
Enumeration at Birth program would require an estimated 250 
workyears each year and cost $16 million to $19 million 
annually. More rigorous oversight of representative payees, 
chiefly from conducting on-site inspections of a broader range 
of payees, would add about 130 workyears and cost $10 million 
to $11 million annually.
    H.R. 4857 would define any document containing a Social 
Security number as a consumer report. Consumer reports are 
regulated by the Federal Trade Commission under the Fair Credit 
Reporting Act. Based on information from the FTC, CBO expects 
that the agency would have to hire new personnel in order to 
regulate the handling of documents containing Social Security 
numbers. CBO estimates that these new staff would cost about $3 
million per year.
    DoD pays $350 million to $400 million a year to the Social 
Security and Hospital Insurance trust funds to reflect the 
taxes due on the value of noncash allowances. As discussed 
above, H.R. 4857 would end that practice in most cases. These 
are intragovernmental payments, however, so their elimination 
would have no net effect on the budget. If future 
appropriations were cut commensurately, discretionary spending 
would be lower by $1.5 billion over the 2002-2005 period. But 
receipts to the trust funds would decline commensurately, as 
shown in the memorandum item in Table 1. Because that change in 
offsetting receipts would depend on future appropriation 
action, it is not considered a direct spending effect.
    Pay-as-you-go considerations: The Balanced Budget and 
Emergency Deficit Control Act sets up pay-as-you-go procedures 
for legislation affecting direct spending or receipts. The net 
changes in outlays and governmental receipts that are subject 
to pay-as-you-go procedures, are shown in the following table. 
(Spending for OASDI is not counted.) For purposes of enforcing 
pay-as-you-go procedures only the effects in the budget year 
and the succeeding four years are counted.

----------------------------------------------------------------------------------------------------------------
                                                          By fiscal year, in millions of dollars--
                                           ---------------------------------------------------------------------
                                             2001   2002   2003   2004   2005   2006   2007   2008   2009   2010
----------------------------------------------------------------------------------------------------------------
Changes in outlays........................      1      0      0      0      0      0      0      0      0      0
Changes in receipts.......................      0      0      0      0      0      0      0      0      0      0
----------------------------------------------------------------------------------------------------------------

    Estimated impact on state, local, and tribal governments: 
H.R. 4857 contains a number of intergovernmental mandates as 
defined in the Unfunded Mandates Reform Act. Specifically, the 
bill would restrict or prohibit governmental agencies from:
           Selling Social Security numbers;
           Otherwise allowing access to SSNs by the 
        public;
           Displaying SSNs on checks or check stubs, 
        and;
           Using SSNs on driver's licenses or 
        identification cards.
    The extent to which state and local governments still use 
SSNs in their data and bookkeeping systems is unclear. In 
addition, the cost of altering such systems varies widely. 
Based on information from state and local governments and 
various interest groups representing them, however, CBO 
believes that the aggregate costs of those mandates would 
probably exceed the threshold established in UMRA ($55 million 
in 2000, adjusted annually for inflation) in at least one year 
over the next five years.
    Many state and local governments have reduced the use of 
SSNs in recent years, particularly on driver's licenses, and 
the sale of such numbers to non-governmental entities. However, 
several other uses of SSNs by governments would violate the 
prohibitions in the bill.
    Most costly would be the prohibition against displaying 
SSNs on checks and check stubs and otherwise restricting public 
access to those numbers. Some states have already enacted laws 
protecting access to SSNs, and few alterations would have to be 
made in those states. Many other state and local governments, 
however, currently use SSNs to identify individuals for 
purposes such as property tax liens, court documents, income 
tax payment and refund data, motor vehicle registrations, and 
employee benefit records. For example, the state of Illinois 
includes SSNs on check stubs for income tax refunds, and the 
state of Pennsylvania includes SSNs on unemployment and state 
retirement system checks. The state of New York uses SSNs as 
the default for sales tax identification numbers. In those and 
similar cases, the SSNs would have to be removed or alternative 
systems developed. Some governments also have laws allowing 
general access to public documents. By requiring governments 
either to implement new record-keeping systems (most likely 
involving computer reprogramming) or to audit documents made 
available to the public in order to avoid disclosing SSNs, H.R. 
4857 would impose costs that are likely, in the aggregate, to 
be significant.
    The bill would allow a three-year window for affected 
governments to alter their systems, and this delay would tend 
to lower costs and spread them over time. However, because of 
the large number of state and local governments (well over 
80,000) in the United States, even inexpensive changes to 
individual systems would quickly add up to aggregate costs 
exceeding the threshold in UMRA. For example, even if only half 
of all governments were required to reprogram or audit 
documents, and each spent as little as $5,000 on altering their 
systems or procedures over a three-year period, total costs 
would exceed $55 million annually at some point over the next 
few years.
    Estimated impact on the private sector: H.R. 4857 would 
impose new private-sector mandates on persons who buy or sell 
personally identifiable information (sections 201 and 203), on 
firms that require customers to provide them with their Social 
Security number (section 202), and on representative payees 
that accept Social Security checks on behalf of beneficiaries 
(section 402). CBO has been unable to obtain sufficient data to 
estimate the aggregate direct cost of these mandates. However, 
we have sufficient information to conclude that the cost would 
significantly exceed the statutory threshold specified in UMRA 
($109 million in 2000, adjusted annually for inflation).
    The Social Security number is the de factor unique and 
constant individual identifier that is used in the United 
States today. Most other identifiers either are not unique, 
such as a name, or can change, such as names or addresses. For 
example,
         42 million people move each year;
         3 million people change their last name each 
        year;
         6 million people have second homes and may use 
        either address; and
         Ten of millions of people own businesses or 
        use a business address in connection with their credit.
    As a result, the most accurate method of combining 
information on individuals from different sources is to match 
the sources on the SNN. Also, the most reliable current method 
of accessing information about an individual from a database is 
to use the SSN.
    In the long term, if use of the SSN were severely 
restricted, governments and commercial firms might develop 
another method of uniquely identifying individuals. However, 
such an effort would be costly and would take years to 
complete. Furthermore, current problems with identify theft and 
loss of privacy would transfer to the replacement identifier. 
In the short term, if use of the SSN were severely restricted, 
accessing information from large databases, such as those 
maintained by credit bureaus, would become more difficult and 
providers of information would undoubtedly have to increase the 
price for their services. In the short and medium term, the 
cost to information providers of maintaining and expanding 
their databases would rise. Consequently, the quality of these 
information sources would fall and there would be further 
pressure for providers to increase the prices for their 
services. The cost of most mandates in this bill is related to 
the added difficulty of accessing information in these 
databases without using an SSN, or to maintaining and expanding 
these databases without using an SSN.
    Section 201 of the bill would make it unlawful for any 
person to sell or purchase an SSN in a manner that would put 
the information at risk of being used to commit fraud, 
deception, or crime, or put the individual at some risk of 
bodily, emotional, or financial harm. The Federal Trade 
Commission would be required to develop regulations that would 
govern these purchases and sales. A few activities, such as law 
enforcement, would be exempt from the regulations. Firms that 
disclose SSNs--for example, those that sell personally 
identifiable information over the Internet--would find some of 
their activities prohibited by FTC regulations.
    Section 202 of the bill would make it an unfair trade 
practice for firms to refuse to do business with an individual 
if that individual did not provide their SSN. A person may now 
be asked to provide his or her SSN for such diverse activities 
as taking out an insurance policy, checking into a hospital, 
applying for store charge account, joining a club, or taking a 
college admissions test. This provision could make it much more 
difficult for a firm to obtain, for example, a credit history 
on a customer who is applying for credit but who declines to 
provide an SSN. It would also make it much more difficult to 
provide information that can be readily matched to other 
information. For example, college admissions testing 
organizations normally ask for the SSN so that their score 
reports to colleges can be easily matched to the other 
information in a student's admission file.
    While CBO does not know how many people would not provide 
their SSN if the bill were enacted, the number of current 
transactions that require the SSN as a unique identifier is 
extremely large. Credit bureaus use the person's SSN as the 
unique identifier in their databases. In fact, they currently 
maintain credit files on 180 million adults, issue 900 million 
credit reports each year, and track roughly two billion 
transactions per month using the SSN as the identifier. Thus, 
while we do not have sufficient information to estimate the 
cost of this mandate, it could be very large.
    Section 203 would strengthen the provisions of the Fair 
Credit Reporting Act (FCRA) by giving the SSN the same status 
as credit history information, thereby significantly 
restricting the permissible uses of SSN. From the perspective 
of the FCRA, the information about a consumer in the databases 
credit bureaus maintain can be divided into the credit header 
and the consumer report, which includes credit history. The 
credit header contains key identifying information, including 
the SSN, while the consumer report contains the information 
bearing on a consumer's credit worthiness, including income and 
payment histories. It is unlawful to disclose information in 
the consumer report unless it is for one of the listed 
permissible purposes specified in the law.
    This provision would make it unlawful, for example, for a 
private detective to supply a person's SSN to an information 
broker in order to get information on that person's addresses. 
It would also be unlawful to sell data that include the SSN to 
information brokers such as those in the IRSG or to direct 
marketers. If such firms are not able to buy information that 
can be economically combined using an identifier such as the 
SSN, then the value of the remaining information they have 
would fall and the cost of maintaining it at a particular level 
of quality would rise.
    A permissible purpose of a consumer report is one that is 
in accordance with the written instructions of the consumer, so 
a college admissions testing organization, for example, would 
have to obtain the written consent of test-takers to be able to 
provide the test-taker's SSN to colleges and universities along 
with their scores. Nevertheless, any attempt to get information 
about a consumer from an information broker by providing the 
consumer's SSN would become unlawful because disclosing the SSN 
would constitute a consumer report and the purpose--getting 
locating information--would not be a permissible one. The 
exception would be those cases in which the consumer provides 
written consent to the requestor.
    This provision would have a particularly strong impact on 
private investigators, law firms, collection agencies, or any 
user of locating services because the requestor would not have 
the consumer's written consent to provide the SSN to the 
information broker. Providing other identifying information to 
the broker instead of the SSN would lead to higher charges for 
the services. Furthermore, the information the search returned 
would be less useful because it would sometimes be diluted with 
information on other consumers with the same identifying 
information or would not based on records with the correct 
information.
    One other mandate in the bill would be created by section 
402. This provision would stiffen restrictions on 
nongovernmental, organizational representative payees. These 
organizations would be required to both obtain a license from 
the state they are located in and be bonded. This would impose 
a mandate on representative payees who under current law need 
only do one or the other. This provision would have a minimal 
aggregate cost on these organizations, however.
    Estimate prepared by: Federal Costs: Sheila Dacey (Titles 
I-IV); Kathy Ruffing (Title V); and Ken Johnson (Federal Trade 
Commission). Revenues: Edward Harris and Erin Whitaker. Impact 
on State, Local, and Tribal Governments: Leo Lex. Impact on the 
Private Sector: Nabeel Alsalam.
    Estimate approved by: Robert A Sunshine, Assistant Director 
for Budget Analysis.

     V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE


          A. Committee Oversight Findings and Recommendations

    In compliance with clause 3(c)(1) of rule XIII of the Rules 
of the House of Representatives, the Committee advises that it 
was a result of the Subcommittee on Social Security's oversight 
review of the use and misuse of Social Security numbers and the 
misuse of Social Security and SSI benefits by organizational 
representative payees that the Committee concluded that it is 
appropriate and timely to enact the provisions included in the 
bill as reported.

    B. Summary of Findings and Recommendations of the Committee on 
                           Government Reform

    In compliance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee advises that no 
oversight findings or recommendations have been submitted to 
this Committee by the Committee on Government Reform with 
respect to the provisions contained in this bill.

                 C. Constitutional Authority Statement

    With respect to clause 3(d)(1) of rule XIII of the Rules of 
the House of Representatives, relating to Constitutional 
Authority, the Committee states that the Committee's action in 
reporting the bill is derived from Article I of the 
Constitution, Section 8 (``The Congress shall have power to lay 
and collect taxes, duties, imposts and excises, to pay the 
debts and to provide for * * * the general Welfare of the 
United States * * *'').

              D. Information Relating to Unfunded Mandates

    This information is provided in accordance with section 423 
of the Unfunded Mandates Reform Act (UMRA) of 1995 (Public Law 
104-4).
    The Committee has determined that the following provisions 
of the bill contain Federal mandates on the private sector: (1) 
restricting the sale and purchase of SSNs in the private 
sector, (2) making it an unfair or deceptive trade practice for 
businesses to deny services to an individual who declines to 
provide his or her SSN, (3) giving the SSN contained in a 
consumer report the same status as the credit information 
contained in the report, thereby restricting permissible uses 
of the SSN, and (4) requiring nongovernmental organizational 
representative payees to be both bonded and licensed (if the 
State provides licensing.)
    The Committee has been unable to obtain sufficient data to 
estimate the direct cost of these mandates. However, the 
Committee has determined that the mandates would exceed the 
statutory threshold specified in UMRA. The benefits of these 
provisions include protecting SSN privacy and reducing SSN 
misuse, including identity theft. Restricting the sale and 
purchase of SSNs and strengthening protections for SSNs 
contained in consumer reports (items #1 and #3 above) would 
protect SSN privacy by restricting unauthorized access to this 
information and reducing the potential for fraudulent 
activities. Making it an unfair or deceptive trade practice 
deny services to individuals who refuse to provide their SSNs 
(item #2 above) would further protect SSN privacy by 
discouraging businesses from requesting the SSN unless the 
information is legitimately needed to carry out the business 
transaction. Requiring representative payees to be licensed and 
bonded (item #4 above) strengthens protections for Social 
Security and SSI beneficiaries who rely on representative 
payees to manage their benefits and reduces the risk that 
representative payees will misuse beneficiaries' funds.
    Separately, the Committee has determined that the following 
provisions of the bill contain Federal mandates on the public 
sector by prohibiting Federal, State and local government 
agencies from: (1) selling SSNs (with certain exceptions) (2) 
displaying SSNs to the general public (with certain 
exceptions), (3) displaying SSNs on checks or check stubs, and 
(4) displaying SSNs on drivers' licenses or identification 
cards.
    The Committee has not determined the direct costs of these 
provisions. However, based on information from State and local 
governments and various interest groups representing them, the 
aggregate cost of all of these mandates would probably exceed 
the threshold established under UMRA in at least one year over 
the next five years. Under present law, SSNs are widely 
available and easily accessible to the public. These provisions 
would restrict the sale and public display of SSNs, making it 
more difficult for criminals to access this personal 
information and subsequently use it to facilitate fraudulent 
activities, such as identity theft. Consequently, these 
provisions would protect privacy, help prevent SSN crimes and 
reduce the public and private costs associated with such 
crimes.
    The legislation does not authorize federal funding for 
these direct costs because the extent to which State and local 
governments still use SSNs in their data and bookkeeping 
systems is unclear. Moreover, the cost of altering such systems 
(if needed) varies widely. Thus, the Committee does not have 
sufficient data to determine the costs associated with these 
mandates or how federal funding should be allocated among the 
various government agencies. The legislation allows a three-
year window to phase in necessary changes, thereby lowering 
costs and spreading them over time. Finally, the costs to 
individual government units is likely to be small. However, 
because of the large number of State and local governments 
(well over 800,000) in the United States, inexpensive changes 
to individual systems add up to aggregate costs which exceed 
the UMRA threshold.
    The provisions of the bill affect activities engaged in by 
both the private and public sectors. Therefore, they do not 
affect the competitive balance between state, local or tribal 
governments and the private sector.

       VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

                         SOCIAL SECURITY ACT

           *       *       *       *       *       *       *



TITLE II--FEDERAL OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE BENEFITS

           *       *       *       *       *       *       *



              age and survivors insurance benefit payments

                       Old Age Insurance Benefits

Sec. 202. (a) * * *

           *       *       *       *       *       *       *


     Termination of Benefits Upon [Deportation] Removal of Primary 
                              Beneficiary

  (n)(1) If any individual is (after the date of enactment of 
this subsection) [deported under section 241(a) (other than 
under paragraph (1)(C) or (1)(E) thereof)] removed under 
section 237(a) (other than paragraph (1)(C) or (1)(E) thereof) 
or 212(a)(6)(A) of the Immigration and Nationality Act, then, 
notwithstanding any other provisions of this title--
          (A) no monthly benefit under this section or section 
        223 shall be paid to such individual, on the basis of 
        his wages and self employment income, for any month 
        occurring (i) after the month in which the Commissioner 
        of Social Security is notified by the Attorney General 
        that such individual has been so [deported] removed, 
        and (ii) before the month in which such individual is 
        thereafter lawfully admitted to the United States for 
        permanent residence,

           *       *       *       *       *       *       *

  (2) As soon as practicable after the [deportation] removal of 
any individual [under any of the paragraphs of section 241(a) 
of the Immigration and Nationality Act (other than under 
paragraph (1)(C) or (1)(E) thereof)] under any of the 
paragraphs of section 237(a) of the Immigration and Nationality 
Act (other than paragraph (1)(C) or (1)(E) thereof) or under 
section 212(a)(6)(A) of such Act, the Attorney General shall 
notify the Commissioner of Social Security of such 
[deportation] removal.
  (3) For purposes of paragraphs (1) and (2) of this 
subsection, an individual against whom a final order of 
[deportation] removal has been issued under [paragraph (19) of 
section 241(a)] subparagraph (D) of section 237(a)(4) of the 
Immigration and Nationality Act (relating to persecution of 
others on account of race, religion, national origin, or 
political opinion, under the direction of or in association 
with the Nazi government of Germany or its allies) shall be 
considered to have been [deported] removed under such 
[paragraph (19)] subparagraph (D) as of the date on which such 
order became final.

           *       *       *       *       *       *       *


           evidence, procedure, and certification for payment

Sec. 205. (a) * * *

           *       *       *       *       *       *       *

  (c)(1) * * *
  (2)(A) * * *
  (B)(i) * * *
  (ii) The Commissioner of Social Security shall require of 
applicants for social security account numbers such evidence as 
may be necessary to establish the age, citizenship, or alien 
status, and true identity of such applicants, and to determine 
which (if any) social security account number has previously 
been assigned to such individual. With respect to an 
application for a social security account number for an 
individual who has not attained the age of 18 before such 
application, such evidence shall include the information 
described in subparagraph (C)(ii). With respect to an 
application for a social security account number for an 
individual other than for purposes of enumeration at birth, the 
Commissioner shall require independent verification of any 
birth record provided by the applicant in support of the 
application.

           *       *       *       *       *       *       *

  (C)(i) * * *

           *       *       *       *       *       *       *

  (vi)(I) For purposes of clause (i) of this subparagraph, an 
agency of a State (or political subdivision thereof) charged 
with the administration of any general public assistance, 
driver's license, or motor vehicle registration law which did 
not use the social security account number for identification 
under a law or regulation adopted before January 1, 1975, may 
require an individual to disclose his or her social security 
number to such agency solely for the purpose of administering 
the laws referred to in clause (i) above and for the purpose of 
responding to requests for information from an agency 
administering a program funded under part A of title IV or an 
agency operating pursuant to the provisions of part D of such 
title.
  (II) A State or political subdivision thereof (and any person 
acting as an agent of such an agency or instrumentality), in 
the administration of any driver's license or motor vehicle 
registration law within its jurisdiction, may not disclose the 
social security account numbers issued by the Commissioner of 
Social Security, or any derivative of such numbers, on any 
driver's license or motor vehicle registration or any other 
document issued by such State or political subdivision to an 
individual for purposes of identification of such individual.

           *       *       *       *       *       *       *

  (x) No executive, legislative, or judicial agency or 
instrumentality of the Federal Government or of a State or a 
political subdivision thereof (or person acting as an agent of 
such an agency or instrumentality) in possession of any 
individual's social security account number may accept an item 
of material value in exchange for such number, or any 
derivative thereof. Notwithstanding the preceding sentence, 
such number (or derivative) may be made available or disclosed 
in such an exchange in accordance with the following exceptions 
(and for no other purpose):
          (I) Such number (or derivative) may be disclosed in 
        such an exchange by a State department of motor 
        vehicles as authorized under subsection (b) of section 
        2721 of title 18, United States Code, if such disclosed 
        number (or derivative) is to be used solely for the 
        purposes permitted under paragraph (1), (6) or (9) of 
        such subsection.
          (II) Such number (or derivative) may be made 
        available in such an exchange to a consumer reporting 
        agency, as defined in section 603(f) of the Fair Credit 
        Reporting Act (15 U.S.C. 1681a(f)), exclusively for use 
        in accordance with such Act.
          (III) Such number (or derivative) may be disclosed in 
        such an exchange to the extent that is necessary or 
        appropriate for law enforcement or national security 
        purposes, as determined under regulations which shall 
        be issued by the Attorney General of the United States.
          (IV) Such an exchange may occur to the extent it is 
        otherwise specifically authorized by this Act.
  (xi) No executive, legislative, or judicial agency or 
instrumentality of the Federal Government or of a State or a 
political subdivision thereof or trustee appointed in a case 
under title 11, United States Code (or person acting as an 
agent of such an agency or instrumentality or trustee), may 
display to the general public any individual's social security 
account number, or any derivative of such number. 
Notwithstanding the preceding sentence, such number (or 
derivative) may be so displayed in accordance with the 
following exceptions (and for no other purpose):
          (I) Such number (or derivative) may be so displayed 
        to a consumer reporting agency, as defined in section 
        603(f) of the Fair Credit Reporting Act (15 U.S.C. 
        1681a(f)), exclusively for use in accordance with such 
        Act.
          (II) Such number (or derivative) may be so displayed 
        to the extent that is necessary or appropriate for law 
        enforcement or national security purposes, as 
        determined under regulations which shall be issued by 
        the Attorney General of the United States.
For purposes of this clause, the term ``display to the general 
public'' in connection with a social security account number, 
or a derivative thereof, means the intentional placing of such 
number or derivative in a viewable manner on an Internet site 
that is available to the general public or in any other manner 
intended to provide access to such number or derivative by the 
general public. Each such agency or instrumentality or trustee 
shall ensure that access to such numbers, and any derivative of 
such numbers, is restricted to persons who may obtain them in 
accordance with this clause and other applicable law.
  (xii) No executive, legislative, or judicial agency or 
instrumentality of the Federal Government or of a State or a 
political subdivision thereof (or person acting as an agent of 
such an agency or instrumentality) may include the social 
security account number of any individual on any check issued 
for any payment by the Federal Government, any State or 
political subdivision thereof, or any agency or instrumentality 
thereof or on any document attached to or accompanying such a 
check.
  (xiii) No executive, legislative, or judicial agency or 
instrumentality of the Federal Government or of a State or 
political subdivision thereof (or person acting as an agent of 
such an agency or instrumentality) may display the social 
security account number, or any derivative of such number, on 
any card or tag that is commonly provided to employees for 
purposes of identification and that is to be maintained for 
continual, open display by the employees.
  (xiv) No executive, legislative, or judicial agency or 
instrumentality of the Federal Government or of a State or 
political subdivision thereof (or person acting as an agent of 
such an agency or instrumentality) may employ, or enter into a 
contract for the use or employment of, prisoners in any 
capacity that would allow such prisoners access to the social 
security account numbers of other individuals. For purposes of 
this clause, the term ``prisoner'' means an individual confined 
in a jail, prison, or other penal institution or correctional 
facility pursuant to such individual's conviction of a criminal 
offense.

           *       *       *       *       *       *       *


                         Representative Payees

  (j)(1) * * *
  (2)(A) * * *
  (B)(i) As part of the investigation referred to in 
subparagraph (A)(i), the Commissioner of Social Security 
shall--
          (I) * * *

           *       *       *       *       *       *       *

          (III) determine whether such person has been 
        convicted of a violation of section 208, 811, or 1632, 
        [and]
          (IV) obtain information concerning whether such 
        person has been convicted of any other offense under 
        Federal or State law which resulted in imprisonment for 
        more than 1 year, and
          [(IV)] (V) determine whether certification of payment 
        of benefits to such person has been revoked pursuant to 
        this subsection, the designation of such person as a 
        representative payee has been revoked pursuant to 
        section 807(a), or payment of benefits to such person 
        has been terminated pursuant to section 
        1631(a)(2)(A)(iii) by reason of misuse of funds paid as 
        benefits under this title, title VIII, or title XVI.

           *       *       *       *       *       *       *

  (C)(i) Benefits of an individual may not be certified for 
payment to any other person pursuant to this subsection if--
          (I) * * *
          (II) except as provided in clause (ii), certification 
        of payment of benefits to such person under this 
        subsection has previously been revoked as described in 
        [subparagraph (B)(i)(IV),] subparagraph (B)(i)(V), the 
        designation of such person as a representative payee 
        has been revoked pursuant to section 807(a), or payment 
        of benefits to such person pursuant to section 
        1631(a)(2)(A)(ii) has previously been terminated as 
        described in [section 1631(a)(2)(B)(ii)(IV)] section 
        1631(a)(2)(B)(ii)(V), or
          (III) except as provided in clause (iii), such person 
        is a creditor of such individual who provides such 
        individual with goods or services for consideration.
Benefits of an individual may not be certified for payment to 
any other person pursuant to this subsection if such person has 
previously been convicted as described in subparagraph 
(B)(i)(IV), unless the Commissioner determines that such 
certification would be appropriate notwithstanding such 
conviction.

           *       *       *       *       *       *       *

  (v) In the case of an individual described in paragraph 
(1)(B), when selecting such individual's representative payee, 
preference shall be given to--
          (I) [a community-based nonprofit social service 
        agency licensed or bonded by the State] a certified 
        community-based nonprofit social service agency,
          (II) a Federal, State, or local government agency 
        whose mission is to carry out income maintenance, 
        social service, or health care-related activities,
          (III) a State or local government agency with 
        fiduciary responsibilities, or
          (IV) a designee of an agency (other than of a Federal 
        agency) referred to in the preceding subclauses of this 
        clause, if the Commissioner of Social Security deems it 
        appropriate,
unless the Commissioner of Social Security determines that 
selection of a family member would be appropriate. For purposes 
of subclause (I), the term ``certified community-based 
nonprofit social service agency'' means a community based 
nonprofit social service agency which is in compliance with 
requirements, under regulations which shall be prescribed by 
the Commissioner, for annual certification to the Commissioner 
that it is bonded in accordance with requirements specified by 
the Commissioner and that it is licensed in each State in which 
it serves as a representative payee (if licensing is available 
in such State) in accordance with requirements specified by the 
Commissioner. Any such annual certification shall include a 
copy of any independent audit on such agency which may have 
been performed since the previous certification.

           *       *       *       *       *       *       *

  (3)(A) * * *

           *       *       *       *       *       *       *

  (E) In any case in which the person described in subparagraph 
(A) or (D) receiving payments on behalf of another fails to 
submit a report required by the Commissioner of Social Security 
under subparagraph (A) or (D), the Commissioner may, after 
furnishing notice and opportunity for a hearing to such person 
and the individual entitled to such payment, require that the 
person collect such payments in person at a field office of the 
Social Security Administration serving the area in which the 
individual resides.
  [(E)] (F) The Commissioner of Social Security shall maintain 
a centralized file, which shall be updated periodically and 
which shall be in a form which will be readily retrievable by 
each servicing office of the Social Security Administration, 
of--
          (i) the address and the social security account 
        number (or employer identification number) of each 
        representative payee who is receiving benefit payments 
        pursuant to this subsection, section 807, or section 
        1631(a)(2), and
          (ii) the address and social security account number 
        of each individual for whom each representative payee 
        is reported to be providing services as representative 
        payee pursuant to this subsection, section 807, or 
        section 1631(a)(2).
  [(F)] (G) Each servicing office of the Administration shall 
maintain a list, which shall be updated periodically, of public 
agencies and community-based nonprofit social service agencies 
which are qualified to serve as representative payees pursuant 
to this subsection or section 807 or 1631(a)(2) and which are 
located in the area served by such servicing office.
  (4)(A)(i) [A] Except as provided in the next sentence, a 
qualified organization may collect from an individual a monthly 
fee for expenses (including overhead) incurred by such 
organization in providing services performed as such 
individual's representative payee pursuant to this subsection 
if such fee does not exceed the lesser of--
          (I) 10 percent of the monthly benefit involved, or
          (II) $25.00 per month ($50.00 per month in any case 
        in which the individual is described in 
        paragraph(1)(B)).
A qualified organization may not collect a fee from an 
individual for any month with respect to which the Commissioner 
of Social Security or a court of competent jurisdiction has 
determined that the organization misused all or part of the 
individual's benefit, and any amount so collected by the 
qualified organization for such month shall be treated as a 
misused part of the individual's benefit for purposes of 
paragraphs (5) and (6). The Secretary shall adjust annually 
(after 1995) each dollar amount set forth in subclause (II) 
under procedures providing for adjustments in the same manner 
and to the same extent as adjustments are provided for under 
the procedures used to adjust benefit amounts under section 
215(i)(2)(A), except that any amount so adjusted that is not a 
multiple of $1.00 shall be rounded to the nearest multiple of 
$1.00.

           *       *       *       *       *       *       *

  (B) For purposes of this paragraph, the term ``qualified 
organization'' means any State or local government agency whose 
mission is to carry out income maintenance, social service, or 
health care-related activities, any State or local government 
agency with fiduciary responsibilities, or [any community-based 
nonprofit social service agency which is bonded or licensed in 
each State in which it serves as a representative payee] any 
certified community-based nonprofit social service agency (as 
defined in paragraph (2)(C)(v)), if such agency, in accordance 
with any applicable regulations of the Commissioner of Social 
Security--
          (i) * * *

           *       *       *       *       *       *       *

  (5) In cases where the negligent failure of the Commissioner 
of Social Security to investigate or monitor a representative 
payee results in misuse of benefits by the representative 
payee, the Commissioner of Social Security shall certify for 
payment to the beneficiary or the beneficiary's alternative 
representative payee an amount equal to such misused benefits. 
In any case in which a representative payee--
          (i) that is not an individual (regardless of whether 
        it is a ``qualified organization'' within the meaning 
        of paragraph (4)(B)); or
          (ii) is an individual who, for any month during a 
        period when misuse occurs, serves 15 or more 
        individuals who are beneficiaries under title II, title 
        VIII, title XVI, or any combination of such titles;
misuses all or part of an individual's benefit paid to such 
representative payee, the Commissioner of Social Security shall 
certify for payment to the beneficiary or the beneficiary's 
alternative representative payee an amount equal to the amount 
of such benefit so misused. The provisions of this paragraph 
are subject to the limitations of paragraph (6)(B). The 
Commissioner of Social Security shall make a good faith effort 
to obtain restitution from the terminated representative payee.
  [(6) The Commissioner of Social Security shall include as a 
part of the annual report required under section 704 
information with respect to the implementation of the preceding 
provisions of this subsection, including the number of cases in 
which the representative payee was changed, the number of cases 
discovered where there has been a misuse of funds, how any such 
cases were dealt with by the Commissioner of Social Security, 
the final disposition of such cases, including any criminal 
penalties imposed, and such other information as the 
Commissioner of Social Security determines to be appropriate.]
  (6)(A) If the Commissioner of Social Security or a court of 
competent jurisdiction determines that a representative payee 
that is not a Federal, State, or local government agency has 
misused all or part of an individual's benefit that was paid to 
such representative payee under this subsection, the 
representative payee shall be liable for the amount misused, 
and such amount (to the extent not repaid by the representative 
payee) shall be treated as an overpayment of benefits under 
this title to the representative payee for all purposes of this 
Act and related laws pertaining to the recovery of such 
overpayments. Subject to subparagraph (B), upon recovering all 
or any part of such amount, the Commissioner shall certify an 
amount equal to the recovered amount for payment to such 
individual or the individual's alternative representative 
payee.
  (B) The total of the amount certified for payment to such 
individual or the individual's alternative representative payee 
under subparagraph (A) and the amount certified for payment 
under paragraph (5) may not exceed the total benefit amount 
misused by the representative payee with respect to such 
individual.

           *       *       *       *       *       *       *

  (8) For purposes of this subsection, misuse of benefits by a 
representative payee occurs in any case in which the 
representative payee receives payment under this title for the 
use and benefit of another person and converts such payment, or 
any part thereof, to a use other than for the use and benefit 
of such other person. The Commissioner of Social Security may 
prescribe by regulation the meaning of the term ``use and 
benefit'' for purposes of this paragraph.
  (9) The Commissioner of Social Security shall provide for the 
periodic onsite inspection of any person or agency that 
receives the benefits payable under this title, title VIII, or 
title XVI to another individual pursuant to the appointment of 
such person or agency as a representative payee under this 
subsection, section 807, or section 1631(a)(2) in any case in 
which--
          (A) the representative payee is a person who serves 
        in that capacity with respect to 15 or more such 
        individuals;
          (B) the representative payee is a certified 
        community-based nonprofit social service agency (as 
        defined in paragraph (2)(C)(v) or section 
        1631(a)(2)(B)(vii)); or
          (C) the representative payee is an agency (other than 
        an agency described in subparagraph (B)) that serves in 
        that capacity with respect to 50 or more such 
        individuals.

           *       *       *       *       *       *       *


                               penalties

  Sec. 208. (a) Whoever--
          (1) * * *

           *       *       *       *       *       *       *

          (8) discloses, uses, or compels the disclosure of the 
        social security number of any person in violation of 
        the laws of the United States; or
          (9) offers, for a fee, to acquire for any individual, 
        or to assist in acquiring for any individual, an 
        additional social security account number or a number 
        that purports to be a social security account number; 
        or
          (10) being an officer or employee of any executive, 
        legislative, or judicial agency or instrumentality of 
        the Federal Government or of a State or political 
        subdivision thereof (or a person acting as an agent of 
        such an agency or instrumentality) in possession of any 
        individual's social security account number, or (in 
        connection with section 205(c)(2)(C)(xi)) a trustee 
        appointed in a case under title 11, United States Code 
        (or an officer or employee thereof or a person acting 
        as an agent thereof), willfully acts or fails to act so 
        as to cause a violation of clause (vi)(II), (x), (xi), 
        (xii), or (xiv) of section 205(c)(2)(C); or
          (11) knowingly sells or purchases (as defined in 
        paragraphs (2) and (3) of subsection (d)) the social 
        security account number of any person;
shall be guilty of a felony and upon conviction thereof shall 
be fined under title 18, United States Code, or imprisoned for 
not more than five years, or both.
  (b)(1) Any Federal court, when sentencing a defendant 
convicted of an offense under subsection (a), may order, in 
addition to or in lieu of any other penalty authorized by law, 
that the defendant make restitution to the Social Security 
Administration.
  (2) Sections 3612, 3663, and 3664 of title 18, United States 
Code, shall apply with respect to the issuance and enforcement 
of orders of restitution under this subsection. In so applying 
such sections, the Social Security Administration shall be 
considered the victim.
  (3) If the court does not order restitution, or orders only 
partial restitution, under this subsection, the court shall 
state on the record the reasons therefor.
  [(b)] (c) Any person or other entity who is convicted of a 
violation of any of the provisions of this section, if such 
violation is committed by such person or entity in his role as, 
or in applying to become, a certified payee under section 
205(j) on behalf of another individual (other than such 
person's spouse), upon his second or any subsequent such 
conviction shall, in lieu of the penalty set forth in the 
preceding provisions of this section, be guilty of a felony and 
shall be fined under title 18, United States Code, or 
imprisoned for not more than five years, or both. In the case 
of any violation described in the preceding sentence, including 
a first such violation, if the court determines that such 
violation includes a willful misuse of funds by such person or 
entity, the court may also require that full or partial 
restitution of such funds be made to the individual for whom 
such person or entity was the certified payee.
  [(c)] (d) Any individual or entity convicted of a felony 
under this section or under section 1632(b) may not be 
certified as a payee under section 205(j). [For the purpose of 
subsection (a)(7), the terms ``social security number'' and 
``social security account number'' mean such numbers as are 
assigned by the Commissioner of Social Security under section 
205(c)(2) whether or not, in actual use, such numbers are 
called social security numbers.]
  (e)(1) For purposes of subsection (a)(7), the term ``social 
security account number'' means a number assigned by the 
Commissioner of Social Security under section 205(c)(2) whether 
or not, in actual use, such number is called a social security 
account number.
  (2) For purposes of subsection (a)(11), the term ``sell'' in 
connection with a social security account number means to 
obtain, directly or indirectly, anything of value in exchange 
for such number. Such term does not include the submission of 
such number as part of the process for applying for any type of 
Government benefits or programs (such as grants or loans or 
welfare or other public assistance programs). Such term also 
does not include transfers of such number as part of a matching 
program, as defined in section 552a(a)(8)(A) of title 5, United 
States Code, or any other match referred to in section 
552a(a)(8)(B) of such title.
  (3) For purposes of subsection (a)(11), the term ``purchase'' 
in connection with a social security account number means to 
provide, directly or indirectly, anything of value in exchange 
for such number. Such term does not include the submission of 
such number as part of the process for applying for any type of 
Government benefits or programs (such as grants or loans or 
welfare or other public assistance programs). Such term also 
does not include transfers of such number as part of a matching 
program, as defined in section 552a(a)(8)(A) of title 5, United 
States Code, or any other match referred to in section 
552a(a)(8)(B) of such title.
  [(d)] (f)(1) Except as provided in paragraph (2), an alien--
          (A) * * *

           *       *       *       *       *       *       *


                          definition of wages

  Sec. 209. (a) For the purposes of this title, the term 
``wages'' means remuneration paid prior to 1951 which was wages 
for the purposes of this title under the law applicable to the 
payment of such remuneration, and remuneration paid after 1950 
for employment, including the cash value of all remuneration 
(including benefits) paid in any medium other than cash; except 
that, in the case of remuneration paid after 1950, such term 
shall not include--
          (1) * * *

           *       *       *       *       *       *       *

          (6)(A) * * *
          (B) Cash remuneration paid by an employer in any 
        calendar year to an employee for domestic service in a 
        private home of the employer (including domestic 
        service [described in section 210(f)(5)] on a farm 
        operated for profit), if the cash remuneration paid in 
        such year by the employer to the employee for such 
        service is less than the applicable dollar threshold 
        (as defined in section 3121(x) of the Internal Revenue 
        Code of 1986) for such year;

           *       *       *       *       *       *       *


                        definition of employment

Sec. 210. For the purposes of this title--

                               Employment

  (a) * * *

           *       *       *       *       *       *       *


                           Agricultural Labor

  (f) The term ``agricultural labor'' includes all service 
performed--
          (1) * * *

           *       *       *       *       *       *       *

          (5) On a farm operated for profit if such service is 
        not in the course of the employer's trade or business 
        [or is domestic service in a private home of the 
        employer].

           *       *       *       *       *       *       *


                            self-employment

Sec. 211. For the purposes of this title--

                   Net Earnings From Self-Employment

  (a) The term ``net earnings from self-employment'' means the 
gross income, as computed under subtitle A of the Internal 
Revenue Code of 1986, derived by an individual from any trade 
or business carried on by such individual, less the deductions 
allowed under such subtitle which are attributable to such 
trade or business, plus his distributive share (whether or not 
distributed) of the ordinary net income or loss, as computed 
under section 702(a)(8) of such Code, from any trade or 
business carried on by a partnership of which he is a member; 
except that in computing such gross income and deductions and 
such distributive share of partnership ordinary net income or 
loss--
          (1) * * *

           *       *       *       *       *       *       *

          (7) An individual who is a duly ordained, 
        commissioned, or licensed minister of a church or a 
        member of a religious order shall compute his net 
        earnings from self-employment derived from the 
        performance of service described in subsection (c)(4) 
        without regard to section 107 (relating to rental value 
        of parsonages), section 119 (relating to meals and 
        lodging furnished for the convenience of the employer), 
        and section 911 (relating to earned income from sources 
        without the United States) of the Internal Revenue Code 
        of 1986, but shall not include in any such net earnings 
        from self-employment the rental value of any parsonage 
        or any parsonage allowance (whether or not excluded 
        under section 107 of the Internal Revenue Code of 1986) 
        provided after the individual retires, or any other 
        retirement benefit received by such individual from a 
        church plan (as defined in section 414(e) of such Code) 
        after the individual retires;

           *       *       *       *       *       *       *

          (15) The deduction under section [162(m)] 162(l) 
        (relating to health insurance costs of self-employed 
        individuals) shall not be allowed.

           *       *       *       *       *       *       *


         benefits in case of members of the uniformed services

  Sec.  229. (a) For purposes of determining entitlement to and 
the amount of any monthly benefit for any month after December 
1972, or entitlement to and the amount of any lump-sum death 
payment in case of a death after such month, payable under this 
title on the basis of the wages and self-employment income of 
any individual, and for purposes of section 216(i)(3), such 
individual, if he was paid wages for service as a member of a 
uniformed service (as defined in section 210(m)) which was 
included in the term ``employment'' as defined in section 
210(a) as a result of the provisions of section 210(l)(1)(A), 
shall be deemed to have been paid--
          (1) * * *
          (2) in each calendar year occurring after 1977 and 
        before 2002 in which he was paid such wages, additional 
        wages of $100 for each $300 of such wages, up to a 
        maximum of $1,200 of additional wages for any calendar 
        year.
  (b) There are authorized to be appropriated to each of the 
Trust Funds, consisting of the Federal Old-Age and Survivors 
Insurance Trust Fund, the Federal Disability Insurance Trust 
Fund, and the Federal Hospital Insurance Trust Fund, for 
transfer on July 1 of each calendar year before 2002 to such 
Trust Fund from amounts in the general fund in the Treasury not 
otherwise appropriated, an amount equal to the total of the 
additional amounts which would be appropriated to such Trust 
Fund for the fiscal year ending September 30 of such calendar 
year under section 201 or 1817 of this Act if the amounts of 
the additional wages deemed to have been paid for such calendar 
year by reason of subsection (a) constituted remuneration for 
employment (as defined in section 3121(b) of the Internal 
Revenue Code of 1986) for purposes of the taxes imposed by 
sections 3101 and 3111 of the Internal Revenue Code of 1986. 
Amounts authorized to be appropriated under this subsection for 
transfer on July 1 of each calendar year shall be determined on 
the basis of estimates of the Commissioner of Social Security 
of the wages deemed to be paid for such calendar year under 
subsection (a); and proper adjustments shall be made in amounts 
authorized to be appropriated for subsequent transfer to the 
extent prior estimates were in excess of or were less than such 
wages so deemed to be paid. Additional adjustments may be made 
in the amounts so authorized to be appropriated to the extent 
that the amounts transferred in accordance with clauses (i) and 
(ii) of section 151(b)(3)(B) of the Social Security Amendments 
of 1983 with respect to wages deemed to have been paid in 1983 
were in excess of or were less than the amount which the 
Commissioner of Social Security, on the basis of appropriate 
data, determines should have been so transferred. No later than 
June 1, 2004, the Commissioner of Social Security shall 
determine whether and the extent, if any, to which amounts 
transferred to the Federal Old-Age and Survivors Insurance 
Trust Fund and the Federal Disability Insurance Trust Fund 
under this subsection for calendar years ending prior to 
January 1, 2002, were in excess of or less than the amounts 
required to be so transferred. No later than 30 days following 
the Commissioner's determination, the Secretary of the Treasury 
shall transfer from the general fund of the Treasury to the 
Federal Old-Age and Survivors Insurance Trust Fund or the 
Federal Disability Insurance Trust Fund, or from such Trust 
Fund to the general fund of the Treasury, such amount or 
amounts (if any) that the Commissioner determines to be 
appropriate.
  (c)(1) For purposes of determining entitlement to and the 
amount of any benefit for any month, or entitlement to any 
lump-sum death payment, payable under this title on the basis 
of the wages and self-employment income of any individual--
          (A) who has died or is under a disability (as defined 
        in section 223(d)),
          (B) whose death or date of onset of such disability 
        occurred prior to the individual's attainment of age 
        47, and
          (C) who, prior to the date of death or onset of such 
        disability, performed fewer than 6 years service as a 
        member of a uniformed service (as defined in section 
        210(m)) that was included in the term ``employment'' as 
        defined in section 210(a) as a result of the provisions 
        of section 210(l)(1)(A),
there shall be deemed to have been paid to such individual in 
each calendar year occurring after 2001 in which such 
individual was paid wages for the service described in 
subparagraph (C) at the rate of basic pay for a pay grade below 
E-6, additional wages of $100 for each $300 of wages paid for 
the service described in subparagraph (C), up to a maximum of 
$1,200 of additional wages for any calendar year.
  (2)(A) Whenever the Commissioner computes the primary 
insurance amount of an individual described in paragraph (1) 
for the purpose of determining the amount of a monthly benefit 
payable on the basis of such individual's wages and self-
employment income, the Commissioner shall additionally 
calculate, with respect to each calendar year (not previously 
subject to a calculation under this subparagraph) in which 
additional wages are deemed to have been paid to such 
individual (under paragraph (1)) and which is also a benefit 
computation year (as defined in section 215(b)(2)(B)) used in 
the computation of such primary insurance amount, the total 
of--
          (i) the amounts that would have been appropriated to 
        the Federal Old-Age and Survivors Insurance Trust Fund 
        and the Federal Disability Insurance Trust Fund under 
        section 201 if such deemed additional wages had 
        constituted wages (as defined in section 3121(a) of the 
        Internal Revenue Code of 1986) for purposes of the 
        taxes imposed by sections 3101 and 3111 of such Code in 
        such calendar year, and
          (ii) such additional amounts as are necessary to 
        place such Trust Funds in the position, as of the last 
        day of the calendar year in which the Commissioner so 
        computes such individual's primary insurance amount, 
        that they would have been in on such day had the 
        amounts described in clause (i) been appropriated to 
        such Trust Funds under section 201 in a timely manner.
  (B) No later than July 1 of the year 2003 and each year 
thereafter, the Commissioner shall notify the Secretary of the 
Treasury of the total, with respect to each such Trust Fund, of 
all amounts calculated by the Commissioner under subparagraph 
(A) during the preceding calendar year. Within 30 days 
following notification by the Commissioner, the Secretary of 
the Treasury shall transfer the amount so calculated with 
respect to each such Trust Fund to such Trust Fund from amounts 
in the general fund of the Treasury not otherwise appropriated. 
Proper adjustment shall be made in amounts required to be 
transferred with respect to any calendar year to the extent 
that the Commissioner determines, on the basis of appropriate 
data, that amounts calculated and transferred with respect to 
any earlier year were less than, or in excess of, the amount 
required to be so calculated and transferred.
  (3) The head of each uniformed service described in section 
210(m) shall report to the Commissioner, in such form and 
within such time frame as the Commissioner may specify, such 
information as the Commissioner may require for the purpose of 
carrying out this subsection.

           *       *       *       *       *       *       *


                      TITLE VII--ADMINISTRATION

           *       *       *       *       *       *       *


           Commissioner; deputy commissioner; other officers

                    Commissioner of Social Security

  Sec. 702. (a) * * *

           *       *       *       *       *       *       *


                           Inspector General

  (e)(1) In General.--There shall be in the Administration an 
Inspector General appointed by the President, by and with the 
advice and consent of the Senate, in accordance with section 
3(a) of the Inspector General Act of 1978.
  (2) Law Enforcement Authority.--
          (A) Specific designations.--The Inspector General may 
        designate one or more special agents in the Office of 
        the Inspector General to exercise the authorities 
        specified in subparagraph (B).
          (B) Authorities.--A special agent in the Office of 
        the Inspector General who is designated under 
        subparagraph (A) may--
                  (i) carry firearms, while engaged in the 
                special agent's official duties conducted 
                pursuant to the Inspector General Act of 1978 
                (5 U.S.C. App.) or any other statute, or as 
                expressly authorized by the Attorney General of 
                the United States,
                  (ii) seek and execute warrants for arrest, 
                search of premises, or seizure of evidence 
                issued under the authority of the United 
                States, upon probable cause to believe that a 
                violation of law has been committed, and
                  (iii) make an arrest without a warrant, while 
                engaged in the special agent's official duties 
                conducted pursuant to the Inspector General Act 
                of 1978 (5 U.S.C. App.) or any other statute, 
                or as expressly authorized by the Attorney 
                General, for--
                          (I) any offense against the United 
                        States committed in the presence of the 
                        special agent, or
                          (II) any felony cognizable under the 
                        laws of the United States, if the 
                        special agent has reasonable grounds to 
                        believe that the person to be arrested 
                        has committed or is committing such 
                        felony.
          (C) Special agent.--For purposes of this paragraph, 
        the term ``special agent'' means an employee in the 
        Office of the Inspector General whose duties include 
        conducting, supervising, and coordinating 
        investigations of criminal activity in the programs and 
        operations of the Social Security Administration.
          (D) Use of state or local law enforcement officers.--
                  (i) In general.--Any State or local law 
                enforcement officer designated by the Inspector 
                General, while assisting a special agent 
                designated under subparagraph (A), may exercise 
                the authorities provided under subparagraph 
                (B).
                  (ii) Applicability of provisions governing 
                federal employees.--
                          (I) In general.--Any such officer 
                        shall not be deemed a Federal employee, 
                        and, subject to subclause (II), shall 
                        not be subject to provisions of law 
                        relating to Federal employees, solely 
                        by reason of the exercise by such 
                        officer of any such authority.
                          (II) Applicability of certain 
                        provisions.--While exercising such 
                        authority, such officer shall be 
                        subject to subsection (c) of section 
                        3374 of title 5, United States Code, as 
                        if such officer were assigned and 
                        appointed as described in such section, 
                        except that nothing in this clause 
                        shall be construed to authorize Federal 
                        pay or other compensation for such 
                        officer.
          (E) Guidelines on exercise of authorities.--The 
        authorities provided under subparagraph (B) shall be 
        exercised in accordance with guidelines prescribed by 
        the Inspector General and approved by the Attorney 
        General of the United States. Such guidelines shall be 
        issued within 1 year after the date of the enactment of 
        the Social Security Number Privacy and Identity Theft 
        Prevention Act of 2000.

           *       *       *       *       *       *       *


               administrative duties of the commissioner

                               Personnel

Sec. 704. (a) * * *

                           Budgetary Matters

  (b)(1) * * *

           *       *       *       *       *       *       *

  (3)(A) Except as provided in subparagraph (B), amounts 
received by the Social Security Administration pursuant to an 
order of restitution under section 208(b), 807(i), or 1632(b) 
shall be credited to a special fund established in the Treasury 
of the United States for amounts so received or recovered. The 
amounts so credited, to the extent and in the amounts provided 
in advance in appropriations Acts, shall be available to defray 
expenses incurred in carrying out title II, title VIII, and 
title XVI.
  (B) Subparagraph (A) shall not apply with respect to amounts 
received in connection with misuse by a representative payee 
(within the meaning of sections 205(j), 807, and 1631(a)(2)) of 
funds paid as benefits under title II, VIII, or XVI. Such 
amounts received in connection with misuse of funds paid as 
benefits under title II shall be transferred to the Managing 
Trustee of the Federal Old-Age and Survivors Insurance Trust 
Fund or the Federal Disability Insurance Trust Fund, as 
determined appropriate by the Commissioner of Social Security, 
and such amounts shall be deposited by the Managing Trustee 
into such Trust Fund. All other such amounts shall be deposited 
by the Commissioner into the general fund of the Treasury as 
miscellaneous receipts.

           *       *       *       *       *       *       *


     TITLE VIII--SPECIAL BENEFITS FOR CERTAIN WORLD WAR II VETERANS

                            Table of Contents

Sec. 801. Basic entitlement to benefits.
     * * * * * * *
Sec. 810A. Optional Federal administration of State recognition 
          payments.
     * * * * * * *

SEC. 807. REPRESENTATIVE PAYEES.

  (a) * * *
  (b) Examination of Fitness of Prospective Representative 
Payee.--
          (1) * * *
          (2) As part of the investigation referred to in 
        paragraph (1), the Commissioner of Social Security 
        shall--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) determine whether the person has been 
                convicted of a violation of section 208, 811, 
                or 1632; [and]
                  (D) obtain information concerning whether 
                such person has been convicted of any other 
                offense under Federal or State law which 
                resulted in imprisonment for more than 1 year; 
                and
                  [(D)] (E) determine whether payment of 
                benefits to the person in the capacity as 
                representative payee has been revoked or 
                terminated pursuant to this section, section 
                205( j), or section 1631(a)(2)(A)(iii) by 
                reason of misuse of funds paid as benefits 
                under this title, title II, or XVI, 
                respectively.

           *       *       *       *       *       *       *

  (d) Persons Ineligible To Serve as Representative Payees.--
          (1) In general.--The benefits of a qualified 
        individual may not be paid to any other person pursuant 
        to this section if--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) except as provided in paragraph (2)(B), 
                the person is a creditor of the qualified 
                individual and provides the qualified 
                individual with goods or services for 
                consideration.
        Benefits of an individual may not be paid to any other 
        person pursuant to this subsection if such person has 
        previously been convicted as described in subsection 
        (b)(2)(D), unless the Commissioner determines that such 
        payment would be appropriate notwithstanding such 
        conviction.

           *       *       *       *       *       *       *

  (h) Accountability Monitoring.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) Authority to restrict collection of payments by 
        persons failing to report.--In any case in which the 
        person described in paragraph (1) or (2) receiving 
        payments on behalf of a qualified individual fails to 
        submit a report required by the Commissioner of Social 
        Security under paragraph (1) or (2), the Commissioner 
        may, after furnishing notice and opportunity for a 
        hearing to such person and the qualified individual, 
        require that the person collect such payments in person 
        at a field office of the Social Security Administration 
        serving the area in which the qualified individual 
        resides.
          [(3)] (4) Maintaining lists of payees.--The 
        Commissioner of Social Security shall maintain lists 
        which shall be updated periodically of--
                  (A) the name, address, and (if issued) the 
                social security account number or employer 
                identification number of each representative 
                payee who is receiving benefit payments 
                pursuant to this section, section 205( j), or 
                section 1631(a)(2); and
                  (B) the name, address, and social security 
                account number of each individual for whom each 
                representative payee is reported to be 
                providing services as representative payee 
                pursuant to this section, section 205( j), or 
                section 1631(a)(2).
          [(4)] (5) Maintaining lists of agencies.--The 
        Commissioner of Social Security shall maintain lists, 
        which shall be updated periodically, of public agencies 
        and community-based nonprofit social service agencies 
        which are qualified to serve as representative payees 
        pursuant to this section and which are located in the 
        jurisdiction in which any qualified individual resides.
  [(i) Restitution.--In any case where]
  (i) Restitution.--
          (1) In general.--In any case where the negligent 
        failure of the Commissioner of Social Security to 
        investigate or monitor a representative payee results 
        in misuse of benefits by the representative payee, the 
        Commissioner of Social Security shall make payment to 
        the qualified individual or the individual's 
        alternative representative payee of an amount equal to 
        the misused benefits. In any case in which a 
        representative payee--
                  (A) that is not an individual; or
                  (B) is an individual who, for any month 
                during a period when misuse occurs, serves 15 
                or more individuals who are beneficiaries under 
                this title, title II, title XVI, or any 
                combination of such titles;
        misuses all or part of an individual's benefit paid to 
        such representative payee, the Commissioner of Social 
        Security shall pay to the beneficiary or the 
        beneficiary's alternative representative payee an 
        amount equal to the amount of such benefit so misused. 
        The provisions of this paragraph are subject to the 
        limitations of subsection (j)(2). The Commissioner of 
        Social Security shall make a good faith effort to 
        obtain restitution from the terminated representative 
        payee.
          (2) Court order for restitution.--
                  (A) In general.--Any Federal court, when 
                sentencing a defendant convicted of an offense 
                under subsection (a), may order, in addition to 
                or in lieu of any other penalty authorized by 
                law, that the defendant make restitution to the 
                Social Security Administration.
                  (B) Related provisions.--Sections 3612, 3663, 
                and 3664 of title 18, United States Code, shall 
                apply with respect to the issuance and 
                enforcement of orders of restitution under this 
                paragraph. In so applying such sections, the 
                Social Security Administration shall be 
                considered the victim.
                  (C) Stated reasons for not ordering 
                restitution.--If the court does not order 
                restitution, or orders only partial 
                restitution, under this paragraph, the court 
                shall state on the record the reasons therefor.
  (j) Misuse of Benefits.--For purposes of this title, misuse 
of benefits by a representative payee occurs in any case in 
which the representative payee receives payment under this 
title for the use and benefit of another person and converts 
such payment, or any part thereof, to a use other than for the 
use and benefit of such other person. The Commissioner of 
Social Security may prescribe by regulation the meaning of the 
term ``use and benefit'' for purposes of this paragraph.
  (k) Periodic Onsite Inspection.--The Commissioner of Social 
Security shall provide for the periodic onsite inspection of 
any person or agency that receives the benefits payable under 
this title, title II, or title XVI to another individual 
pursuant to the appointment of such person or agency as a 
representative payee under this section, section 205(j), or 
section 1631(a)(2) in any case in which--
          (1) the representative payee is a person who serves 
        in that capacity with respect to 15 or more such 
        individuals;
          (2) the representative payee is a certified 
        community-based nonprofit social service agency (as 
        defined in section 205(j)(2)(C)(v) or section 
        1631(a)(2)(B)(vii)); or
          (3) the representative payee is an agency (other than 
        an agency described in paragraph (2)) that serves in 
        that capacity with respect to 50 or more such 
        individuals.
  (l) Liability for Misused Amounts.--
          (1) In general.--If the Commissioner of Social 
        Security or a court of competent jurisdiction 
        determines that a representative payee that is not a 
        Federal, State, or local government agency has misused 
        all or part of an individual's benefit that was paid to 
        such representative payee under this section, the 
        representative payee shall be liable for the amount 
        misused, and such amount (to the extent not repaid by 
        the representative payee) shall be treated as an 
        overpayment of benefits under this title to the 
        representative payee for all purposes of this Act and 
        related laws pertaining to the recovery of such 
        overpayments. Subject to paragraph (2), upon recovering 
        all or any part of such amount, the Commissioner shall 
        make payment of an amount equal to the recovered amount 
        to such individual or the individual's alternative 
        representative payee.
          (2) Limitation.--The total of the amount paid to such 
        individual or the individual's alternative 
        representative payee under paragraph (1) and the amount 
        paid under subsection (i) may not exceed the total 
        benefit amount misused by the representative payee with 
        respect to such individual.

           *       *       *       *       *       *       *


SEC. 810A. OPTIONAL FEDERAL ADMINISTRATION OF STATE RECOGNITION 
                    PAYMENTS.

  (a) In General.--The Commissioner of Social Security may 
enter into an agreement with any State (or political 
subdivision thereof) that provides cash payments on a regular 
basis to individuals entitled to benefits under this title 
under which the Commissioner shall make such payments on behalf 
of such State (or political subdivision).
  (b) Agreement Terms.--
          (1) In general.--Such agreement shall include such 
        terms as the Commissioner finds necessary to achieve 
        efficient and effective administration of both this 
        title and the State program which provides the cash 
        payments referred to in subsection (a).
          (2) Financial terms.--Such agreement shall provide 
        for the State to pay the Commissioner, at such times 
        and in such installments as the parties may specify--
                  (A) an amount equal to the expenditures made 
                by the Commissioner pursuant to such agreement 
                as payments to individuals on behalf of such 
                State; and
                  (B) an administrative fee equal to the 
                administrative expenses incurred by the 
                Commissioner in making such payments.
  (c) Special Disposition of Administrative Fees.--
Administrative fees, upon collection, shall be credited to a 
special fund established in the Treasury of the United States 
for State recognition payments for certain World War II 
veterans. The amounts so credited, to the extent and in the 
amounts provided in advance in appropriations Acts, shall be 
available to defray expenses incurred in carrying out this 
title.

           *       *       *       *       *       *       *


     TITLE XI--GENERAL PROVISIONS, PEER REVIEW, AND ADMINISTRATIVE 
                            SIMPLIFICATION

           *       *       *       *       *       *       *


SEC. 1129. CIVIL MONETARY PENALTIES AND ASSESSMENTS FOR TITLES II, VIII 
                    AND XVI.

  (a)(1) Any person (including an organization, agency, or 
other entity) [who makes, or causes to be made, a statement or 
representation of a material fact for use in determining any 
initial or continuing right to or the amount of--
          [(A) monthly insurance benefits under title II,
                  [(B) benefits or payments under title VIII, 
                or
          [(C) benefits or payments under title XVI,
that the person knows or should know is false or misleading or 
knows or should know omits a material fact or makes such a 
statement with knowing disregard for the truth shall be subject 
to] who--
          (A) makes, or causes to be made, a statement or 
        representation of a material fact, for use in 
        determining any initial or continuing right to or the 
        amount of monthly insurance benefits under title II or 
        benefits or payments under title VIII or XVI that the 
        person knows or should know is false or misleading,
          (B) makes such a statement or representation for such 
        use with knowing disregard for the truth, or
          (C) omits from a statement or representation for such 
        use, or otherwise withholds disclosure of, a fact which 
        the individual knows or should know is material to the 
        determination of any initial or continuing right to or 
        the amount of monthly insurance benefits under title II 
        or benefits or payments under title VIII or XVI, if the 
        individual knows, or should know, that the statement or 
        representation with such omission is false or 
        misleading or that the withholding of such disclosure 
        is misleading,
shall be subject to, in addition to any other penalties that 
may be prescribed by law, a civil money penalty of not more 
than $5,000 for each such statement or representation or each 
receipt of such benefits or payments while withholding 
disclosure of such fact. Such person also shall be subject to 
an assessment, in lieu of damages sustained by the United 
States because of such statement or representation or because 
of such withholding of disclosure of a material fact, of not 
more than twice the amount of benefits or payments paid as a 
result of such a statement or representation or such a 
withholding of disclosure.
  (2) In addition, the Commissioner of Social Security may make 
a determination in the same proceeding to recommend that the 
Secretary exclude, as provided in section 1128, such a person 
who is a medical provider or physician from participation in 
the programs under title XVIII.
  (3) Any person (including an organization, agency, or other 
entity) who--
          (A) uses a social security account number that such 
        person knows or should know has been assigned by the 
        Commissioner of Social Security (in an exercise of 
        authority under section 205(c)(2) to establish and 
        maintain records) on the basis of false information 
        furnished to the Commissioner by any person;
          (B) falsely represents a number to be the social 
        security account number assigned by the Commissioner of 
        Social Security to any individual, when such person 
        knows or should know that such number is not the social 
        security account number assigned by the Commissioner to 
        such individual;
          (C) knowingly alters a social security card issued by 
        the Commissioner of Social Security, or possesses such 
        a card with intent to alter it;
          (D) knowingly buys or sells a card that is, or 
        purports to be, a card issued by the Commissioner of 
        Social Security, or possesses such a card with intent 
        to buy or sell it;
          (E) counterfeits a social security card, or possesses 
        a counterfeit social security card with intent to buy 
        or sell it;
          (F) discloses, uses, compels the disclosure of, or 
        knowingly sells or purchases the social security 
        account number of any person in violation of the laws 
        of the United States;
          (G) with intent to deceive the Commissioner of Social 
        Security as to such person's true identity (or the true 
        identity of any other person) furnishes or causes to be 
        furnished false information to the Commissioner with 
        respect to any information required by the Commissioner 
        in connection with the establishment and maintenance of 
        the records provided for in section 205(c)(2);
          (H) offers, for a fee, to acquire for any individual, 
        or to assist in acquiring for any individual, an 
        additional social security account number or a number 
        which purports to be a social security account number; 
        or
          (I) being an officer or employee of any executive, 
        legislative, or judicial agency or instrumentality of 
        the Federal Government or of a State or political 
        subdivision thereof (or a person acting as an agent of 
        such an agency or instrumentality) or (in connection 
        with section 205(c)(2)(C)(xi)) a trustee appointed in a 
        case under title 11, United States Code (or an officer 
        or employee thereof or a person acting as an agent 
        thereof), in possession of any individual's social 
        security account number, willfully acts or fails to act 
        so as to cause a violation of clause (vi)(II), (x), 
        (xi), (xii), or (xiv) of section 205(c)(2)(C);
shall be subject to, in addition to any other penalties that 
may be prescribed by law, a civil money penalty of not more 
than $5,000 for each violation. Such person shall also be 
subject to an assessment, in lieu of damages sustained by the 
United States resulting from such violation, of not more than 
twice the amount of any benefits or payments paid as a result 
of such violation.
  (4) Any person (including an organization, agency, or other 
entity) who, having received, while acting in the capacity of a 
representative payee pursuant to section 205(j), 807, or 
1631(a)(2), a payment under title II, VIII, or XVI for the use 
and benefit of another individual, converts such payment, or 
any part thereof, to a use that such person knows or should 
know is other than for the use and benefit of such other 
individual shall be subject to, in addition to any other 
penalties that may be prescribed by law, a civil money penalty 
of not more than $5,000 for each conversion. Such person shall 
also be subject to an assessment, in lieu of damages sustained 
by the United States resulting from such conversion, of not 
more than twice the amount of any payments so converted.
  [(2)] (5) For purposes of this section, a material fact is 
one which the Commissioner of Social Security may consider in 
evaluating whether an applicant is entitled to benefits under 
title II or title VIII, or eligible for benefits or payments 
under title XVI.
  (b)(1) * * *

           *       *       *       *       *       *       *

  (3) In a proceeding under this section which--
          (A) is against a person who has been convicted 
        (whether upon a verdict after trial or upon a plea of 
        guilty or nolo contendere) of a Federal or State crime 
        [charging fraud or false statements]; and

           *       *       *       *       *       *       *

  (c) In determining pursuant to subsection (a) the amount or 
scope of any penalty or assessment, or whether to recommend and 
exclusion, the Commissioner of Social Security shall take into 
account--
          (1) the nature of the statements [and 
        representations], representations, or actions referred 
        to in subsection (a) and the circumstances under which 
        they occurred;

           *       *       *       *       *       *       *

  (e)(1) Civil money penalties and assessments imposed under 
this section may be compromised by the Commissioner of Social 
Security and may be recovered--
          (A) in a civil action in the name of the United 
        States brought in United States district court for the 
        district where the [statement or representation 
        referred to in subsection (a) was made] violation 
        occurred, or where the person resides, as determined by 
        the Commissioner of Social Security;

           *       *       *       *       *       *       *

  (2) Amounts recovered under this section shall be recovered 
under by the Commissioner of Social Security and shall be 
disposed of as follows:
          (A) * * *
          (B) [In the case of amounts recovered arising out of 
        a determination relating to title VIII or XVI,] In the 
        case of any other amounts recovered under this section, 
        the amounts shall be deposited by the Commissioner of 
        Social Security into the general fund of the Treasury 
        as miscellaneous receipts.

           *       *       *       *       *       *       *


SEC. 1129A. ADMINISTRATIVE PROCEDURE FOR IMPOSING PENALTIES FOR FALSE 
                    OR MISLEADING STATEMENTS.

  (a) In General.--Any person [who makes, or causes to be made, 
a statement or representation of a material fact for use in 
determining any initial or continuing right to or the amount 
of--
          [(1) monthly insurance benefits under title II; or
          [(2) benefits or payments under title XVI,
that the person knows or should know is false or misleading or 
knows or should know omits a material fact or who makes such a 
statement with knowing disregard for the truth shall be subject 
to, who--
          (1) makes, or causes to be made, a statement or 
        representation of a material fact, for use in 
        determining any initial or continuing right to or the 
        amount of monthly insurance benefits under title II or 
        benefits or payments under title VIII or XVI that the 
        person knows or should know is false or misleading,
          (2) makes such a statement or representation for such 
        use with knowing disregard for the truth, or
          (3) omits from a statement or representation for such 
        use, or otherwise withholds disclosure of, a fact which 
        the individual knows or should know is material to the 
        determination of any initial or continuing right to or 
        the amount of monthly insurance benefits under title II 
        or benefits or payments under title VIII or XVI, if the 
        individual knows, or should know, that the statement or 
        representation with such omission is false or 
        misleading or that the withholding of such disclosure 
        is misleading,
shall be subject to, in addition to any other penalties that 
may be prescribed by law, a penalty described in subsection (b) 
to be imposed by the Commissioner of Social Security.

           *       *       *       *       *       *       *

  (e) Definition.--In this section, the term ``benefits under 
title XVI'' includes State supplementary payments made by the 
Commissioner pursuant to an agreement under section 810A or 
1616(a) of this Act or section 212(b) of Public Law 93-66.

           *       *       *       *       *       *       *


  [prohibition of misuse of symbols, emblems, or names in reference] 
   prohibitions relating to references to social security or medicare

  Sec. 1140. (a)(1) * * *

           *       *       *       *       *       *       *

  (4)(A) No person shall offer, for a fee, to assist an 
individual to obtain a product or service that the person knows 
or should know is provided free of charge by the Social 
Security Administration unless, at the time the offer is made, 
the person provides to the individual to whom the offer is 
tendered a notice that--
          (i) explains that the product or service is available 
        free of charge from the Social Security Administration, 
        and
          (ii) complies with standards prescribed by the 
        Commissioner of Social Security respecting content, 
        placement, visibility, and legibility.
  (B) Subparagraph (A) shall not apply to any offer--
          (i) to serve as a claimant representative in 
        connection with a claim arising under title II, title 
        VIII, or title XVI; or
          (ii) to prepare, or assist in the preparation of, an 
        individual's plan for achieving self-support under 
        title XVI.

           *       *       *       *       *       *       *


                   social security account statements

                         Provision Upon Request

  Sec. 1143. (a)(1) Beginning not later than October 1, 1990, 
the [Secretary] Commissioner of Social Security shall provide 
upon the request of an eligible individual a social security 
account statement (hereinafter referred to as the 
``statement'').
  (2) Each statement shall contain--
          (A) the amount of wages paid to and self-employment 
        income derived by the eligible individual as shown by 
        the records of the [Secretary] Commissioner at the date 
        of the request;
          (B) an estimate of the aggregate of the employer, 
        employee, and self-employment contributions of the 
        eligible individual for old-age, survivors, and 
        disability insurance as shown by the records of the 
        [Secretary] Commissioner on the date of the request;
          (C) a separate estimate of the aggregate of the 
        employer, employee, and self-employment contributions 
        of the eligible individual for hospital insurance as 
        shown by the records of the [Secretary] Commissioner on 
        the date of the request; and

           *       *       *       *       *       *       *


                     Notice to Eligible Individuals

  (b) The [Secretary] Commissioner shall, to the maximum extent 
practicable, take such steps as are necessary to assure that 
eligible individuals are informed of the availability of the 
statement described in subsection (a).

                   Mandatory Provision of Statements

  (c)(1) By not later than September 30, 1995, the [Secretary] 
Commissioner shall provide a statement to each eligible 
individual who has attained age 60 by October 1, 1994, and who 
is not receiving benefits under title II and for whom a current 
mailing address can be determined through such methods as the 
[Secretary] Commissioner determines to be appropriate. In 
fiscal years 1995 through 1999 the [Secretary] Commissioner 
shall provide a statement to each eligible individual who 
attains age 60 in such fiscal years and who is not receiving 
benefits under title II and for whom a current mailing address 
can be determined through such methods as the [Secretary] 
Commissioner determines to be appropriate. The [Secretary] 
Commissioner shall provide with each statement to an eligible 
individual notice that such statement is updated annually and 
is available upon request.
  (2) Beginning not later than October 1, 1999, the [Secretary] 
Commissioner shall provide a statement on an annual basis to 
each eligible individual who is not receiving benefits under 
title II and for whom a mailing address can be determined 
through such methods as the [Secretary] Commissioner determines 
to be appropriate. With respect to statements provided to 
eligible individuals who have not attained age 50, such 
statements need not include estimates of monthly retirement 
benefits. However, if such statements provided to eligible 
individuals who have not attained age 50 do not include 
estimates of retirement benefit amounts, such statements shall 
include a description of the benefits (including auxiliary 
benefits) that are available upon retirement.

           *       *       *       *       *       *       *


   TITLE XVI--SUPPLEMENTAL SECURITY INCOME FOR THE AGED, BLIND, AND 
                                DISABLED

           *       *       *       *       *       *       *


                   Part A--Determination of Benefits

           *       *       *       *       *       *       *


                               RESOURCES

                       Exclusions From Resources

  Sec. 1613. (a) In determining the resources of an individual 
(and his eligible spouse, if any) there shall be excluded--
          (1) * * *

           *       *       *       *       *       *       *

          (12) any account, including accrued interest or other 
        earnings thereon, established and maintained in 
        accordance with section 1631(a)(2)(F); [and]
          (13) any gift to, or for the benefit of, an 
        individual who has not attained 18 years of age and who 
        has a life-threatening condition, from an organization 
        described in section 501(c)(3) of the Internal Revenue 
        Code of 1986 which is exempt from taxation under 
        section 501(a) of such Code--
                  (A) in the case of an in-kind gift, if the 
                gift is not converted to cash; or
                  (B) in the case of a cash gift, only to the 
                extent that the total amount excluded from the 
                resources of the individual pursuant to this 
                paragraph in the calendar year in which the 
                gift is made does not exceed $2,000[.]; and
          (14) for the 9-month period beginning after the month 
        in which received, any amount received by such 
        individual (or spouse) or any other person whose income 
        is deemed to be included in such individual's (or 
        spouse's) income for purposes of this title as 
        restitution for benefits under this title, title II, or 
        title VIII misused by the representative payee.

           *       *       *       *       *       *       *


               Part B--Procedural and General Provisions


                        PAYMENTS AND PROCEDURES

                          Payment of Benefits

  Sec. 1631. (a)(1) Benefits under this title shall be paid at 
such time or times and (subject to paragraph (10)) in such 
installments as will best effectuate the purposes of this 
title, as determined under regulations (and may in any case be 
paid less frequently than monthly where the amount of the 
monthly benefit would not exceed $10).
  (2)(A)(i) * * *

           *       *       *       *       *       *       *

  (iv) For purposes of this subsection, misuse of benefits by a 
representative payee occurs in any case in which the 
representative payee receives payment under this title for the 
use and benefit of another person and converts such payment, or 
any part thereof, to a use other than for the use and benefit 
of such other person. The Commissioner of Social Security may 
prescribe by regulation the meaning of the term ``use and 
benefit'' for purposes of this clause.
  (B)(i) * * *
  (ii) As part of the investigation referred to in clause 
(i)(I), the Commissioner of Social Security shall--
          (I) * * *

           *       *       *       *       *       *       *

          (III) determine whether such person has been 
        convicted of a violation of section 208, 811, or 1632; 
        [and]
          (IV) obtain information concerning whether such 
        person has been convicted of any other offense under 
        Federal or State law which resulted in imprisonment for 
        more than 1 year; and
          [(IV)] (V) determine whether payment of benefits to 
        such person has been terminated pursuant to 
        subparagraph (A)(iii), whether the designation of such 
        person as a representative payee has been revoked 
        pursuant to section 807(a), and whether certification 
        of payment of benefits to such person has been revoked 
        pursuant to section 205(j), by reason of misuse of 
        funds paid as benefits under title II, title VIII, or 
        this title.
  (iii) Benefits of an individual may not be paid to any other 
person pursuant to subparagraph (A)(ii) if--
          (I) such person has previously been convicted as 
        described in clause (ii)(III);
          (II) except as provided in clause (iv), payment of 
        benefits to such person pursuant to subparagraph 
        (A)(ii) has previously been terminated as described in 
        clause [(ii)(IV)] (ii)(V), the designation of such 
        person as a representative payee has been revoked 
        pursuant to section 807(a), or certification of payment 
        of benefits to such person under section 205(j) has 
        previously been revoked as described in section 
        [205(j)(2)(B)(i)(IV)] 205(j)(2)(B)(i)(V); or
          (III) except as provided in clause (v), such person 
        is a creditor of such individual who provides such 
        individual with goods or services for consideration.
Benefits of an individual may not be paid to any other person 
pursuant to subparagraph (A)(ii) if such person has previously 
been convicted as described in clause (ii)(IV), unless the 
Commissioner determines that such payment would be appropriate 
notwithstanding such conviction.

           *       *       *       *       *       *       *

  (vii) In the case of an individual described in subparagraph 
(A)(ii)(II), when selecting such individual's representative 
payee, preference shall be given to--
                  (I) [a community-based nonprofit social 
                service agency licensed or bonded by the State] 
                a certified community-based nonprofit social 
                service agency;

           *       *       *       *       *       *       *

                  (IV) a designee of an agency (other than of a 
                Federal agency) referred to in the preceding 
                subclauses of this clause, if the Commissioner 
                of Social Security deems it appropriate,
unless the Commissioner of Social Security determines that 
selection of a family member would be appropriate. For purposes 
of subclause (I), the term ``certified community-based 
nonprofit social service agency'' means a community based 
nonprofit social service agency which is in compliance with 
requirements, under regulations which shall be prescribed by 
the Commissioner, for annual certification to the Commissioner 
that it is bonded in accordance with requirements specified by 
the Commissioner and that it is licensed in each State in which 
it serves as a representative payee (if licensing is available 
in such State) in accordance with requirements specified by the 
Commissioner. Any such annual certification shall include a 
copy of any independent audit on such agency which may have 
been performed since the previous certification.

           *       *       *       *       *       *       *

  (C)(i) * * *

           *       *       *       *       *       *       *

  (v) In any case in which the person described in clause (i) 
or (iv) receiving payments on behalf of another fails to submit 
a report required by the Commissioner of Social Security under 
clause (i) or (iv), the Commissioner may, after furnishing 
notice and opportunity for a hearing to such person and the 
individual entitled to such payment, require that the person 
collect such payments in person at a field office of the Social 
Security Administration serving the area in which the 
individual resides.
  (D)(i) [A] Except as provided in the next sentence, a 
qualified organization may collect from an individual a monthly 
fee for expenses (including overhead) incurred by such 
organization in providing services performed as such 
individual's representative payee pursuant to subparagraph 
(A)(ii) if the fee does not exceed the lesser of--
          (I) 10 percent of the monthly benefit involved, or
          (II) $25.00 per month ($50.00 per month in any case 
        in which an individual is described in subparagraph 
        (A)(ii)(II)).
A qualified organization may not collect a fee from an 
individual for any month with respect to which the Commissioner 
of Social Security or a court of competent jurisdiction has 
determined that the organization misused all or part of the 
individual's benefit, and any amount so collected by the 
qualified organization for such month shall be treated as a 
misused part of the individual's benefit for purposes of 
subparagraphs (E) and (F). The Commissioner of Social Security 
shall adjust annually (after 1995) each dollar amount set forth 
in subclause (II) of this clause under procedures providing for 
adjustments in the same manner and to the same extent as 
adjustments are provided for under the procedures used to 
adjust benefit amounts under section 215(i)(2)(A), except that 
any amount so adjusted that is not a multiple of $1.00 shall be 
rounded to the nearest multiple of $1.00. Any agreement 
providing for a fee in excess of the amount permitted under 
this clause shall be void and shall be treated as misuse by the 
organization of such individual's benefits.
  (ii) For purposes of this subparagraph, the term ``qualified 
organization'' means any State or local government agency whose 
mission is to carry out income maintenance, social service, or 
health care-related activities, any State or local government 
agency with fiduciary responsibilities, [or any community-based 
nonprofit social service agency, which--
          [(I) is bonded or licensed in each State in which the 
        agency serves as a representative payee; and
          [(II) in accordance] or any certified community-based 
        nonprofit social service agency (as defined in 
        subparagraph (B)(vii)), if such agency, in accordance 
        with any applicable regulations of the Commissioner of 
        Social Security--
          [(aa)] (I) regularly provides services as a 
        representative payee pursuant to subparagraph (A)(ii) 
        or section 205(j)(4) or 807 concurrently to 5 or more 
        individuals; and
          [(bb)] (II) demonstrates to the satisfaction of the 
        Commissioner of Social Security that such agency is not 
        otherwise a creditor of any such individual.
The Commissioner of Social Security shall prescribe regulations 
under which the Commissioner of Social Security may grant an 
exception from [subclause (II)(bb)] subclause (II) for any 
individual on a case-by-case basis if such exception is in the 
best interests of such individual.
  (E) Restitution.--In cases where the negligent failure of the 
Commissioner of Social Security to investigate or monitor a 
representative payee results in misuse of benefits by the 
representative payee, the Commissioner of Social Security shall 
make payment to the beneficiary or the beneficiary's 
representative payee of an amount equal to such misused 
benefits. In any case in which a representative payee--
          (i) that is not an individual (regardless of whether 
        it is a ``qualified organization'' within the meaning 
        of subparagraph (D)(ii)); or
          (ii) is an individual who, for any month during a 
        period when misuse occurs, serves 15 or more 
        individuals who are beneficiaries under title II, title 
        VIII, title XVI, or any combination of such titles;
misuses all or part of an individual's benefit paid to such 
representative payee, the Commissioner of Social Security shall 
make payment to the beneficiary or the beneficiary's 
alternative representative payee of an amount equal to the 
amount of such benefit so misused. The provisions of this 
subparagraph are subject to the limitations of subparagraph 
(F)(ii). The Commissioner of Social Security shall make a good 
faith effort to obtain restitution from the terminated 
representative payee.

           *       *       *       *       *       *       *

  [(G) The Commissioner of Social Security shall include as a 
part of the annual report required under section 704 
information with respect to the implementation of the preceding 
provisions of this paragraph, including--
          [(i) the number of cases in which the representative 
        payee was changed;
          [(ii) the number of cases discovered where there has 
        been a misuse of funds;
          [(iii) how any such cases were dealt with by the 
        Commissioner of Social Security;
          [(iv) the final disposition of such cases (including 
        any criminal penalties imposed); and
          [(v) such other information as the Commissioner of 
        Social Security determines to be appropriate.]
  (G)(i) If the Commissioner of Social Security or a court of 
competent jurisdiction determines that a representative payee 
that is not a Federal, State, or local government agency has 
misused all or part of an individual's benefit that was paid to 
such representative payee under this paragraph, the 
representative payee shall be liable for the amount misused, 
and such amount (to the extent not repaid by the representative 
payee) shall be treated as an overpayment of benefits under 
this title to the representative payee for all purposes of this 
Act and related laws pertaining to the recovery of such 
overpayments. Subject to clause (ii), upon recovering all or 
any part of such amount, the Commissioner shall make payment of 
an amount equal to the recovered amount to such individual or 
the individual's alternative representative payee.
  (ii) The total of the amount paid to such individual or the 
individual's alternative representative payee under clause (i) 
of this subparagraph and the amount paid under subparagraph (E) 
may not exceed the total benefit amount misused by the 
representative payee with respect to such individual.

           *       *       *       *       *       *       *

  (I) The Commissioner of Social Security shall provide for the 
periodic onsite inspection of any person or agency that 
receives the benefits payable under this title, title II, or 
title VIII to another individual pursuant to the appointment of 
such person or agency as a representative payee under this 
paragraph, section 205(j), or section 807 in any case in 
which--
          (i) the representative payee is a person who serves 
        in that capacity with respect to 15 or more such 
        individuals;
          (ii) the representative payee is a certified 
        community-based nonprofit social service agency (as 
        defined in section 205(j)(2)(C)(v) or section 
        1631(a)(2)(B)(vii)); or
          (iii) the representative payee is an agency (other 
        than an agency described in clause (ii)) that serves in 
        that capacity with respect to 50 or more such 
        individuals.

           *       *       *       *       *       *       *


                          PENALTIES FOR FRAUD

  Sec. 1632. (a) * * *
  (b)(1) Any Federal court, when sentencing a defendant 
convicted of an offense under subsection (a), may order, in 
addition to or in lieu of any other penalty authorized by law, 
that the defendant make restitution to the Social Security 
Administration.
  (2) Sections 3612, 3663, and 3664 of title 18, United States 
Code, shall apply with respect to the issuance and enforcement 
of orders of restitution under this subsection. In so applying 
such sections, the Social Security Administration shall be 
considered the victim.
  (3) If the court does not order restitution, or orders only 
partial restitution, under this subsection, the court shall 
state on the record the reasons therefor.
  [(b)] (c)(1) If a person or entity violates subsection (a) in 
the person's or entity's role as, or in applying to become, a 
representative payee under section 1631(a)(2) on behalf of 
another individual (other than the person's eligible spouse), 
and the violation includes a willful misuse of funds by the 
person or entity, the court may also require that full or 
partial restitution of funds be made to such other individual.

           *       *       *       *       *       *       *

                              ----------                              


              SECTION 603 OF THE FAIR CREDIT REPORTING ACT


Sec. 603. Definitions and rules of construction

  (a) * * *

           *       *       *       *       *       *       *

  (d) Consumer Report.--
          (1) In general.--The term ``consumer report'' means 
        any written, oral, or other communication of any 
        information by a consumer reporting agency bearing on a 
        consumer's credit worthiness, credit standing, credit 
        capacity, character, general reputation, personal 
        characteristics, or mode of living which is used or 
        expected to be used or collected in whole or in part 
        for the purpose of serving as a factor in establishing 
        the consumer's eligibility for--
                  (A) credit or insurance to be used primarily 
                for personal, family, or household purposes;
                  (B) employment purposes; or
                  (C) any other purpose authorized under 
                section 604.
        The term also includes information regarding the social 
        security account number of the consumer or any 
        derivative thereof.

           *       *       *       *       *       *       *

                              ----------                              


                     INTERNAL REVENUE CODE OF 1986

           *       *       *       *       *       *       *



                      Subtitle C--Employment Taxes

           *       *       *       *       *       *       *


            CHAPTER 21--FEDERAL INSURANCE CONTRIBUTIONS ACT

           *       *       *       *       *       *       *


                     Subchapter A--Tax on Employees

           *       *       *       *       *       *       *


SEC. 3102. DEDUCTION OF TAX FROM WAGES.

  (a) Requirement.--The tax imposed by section 3101 shall be 
collected by the employer of the taxpayer, by deducting the 
amount of the tax from the wages as and when paid. An employer 
who in any calendar year pays to an employee cash remuneration 
to which paragraph (7)(B) of section 3121(a) is applicable may 
deduct an amount equivalent to such tax from any such payment 
of remuneration, even though at the time of payment the total 
amount of such remuneration paid to the employee by the 
employer in the calendar year is less than the applicable 
dollar threshold (as defined in section 3121(x) for such year; 
and an employer who in any calendar year pays to an employee 
cash remuneration to which paragraph (7)(C) or (10) of section 
3121(a) is applicable may deduct an amount equivalent to such 
tax from any such payment of remuneration, even though at the 
time of payment the total amount of such remuneration paid to 
the employee by the employer in the calendar year is less than 
$100; and an employer who in any calendar year pays to an 
employee cash remuneration to which paragraph (8)(B) of section 
3121(a) is applicable may deduct an amount equivalent to such 
tax from any such payment of remuneration, even though at the 
time of payment the total amount of such remuneration paid to 
the employee by the employer in the calendar year is less than 
$150 [and the employee has not performed agricultural labor for 
the employer on 20 days or more in the calendar year for cash 
remuneration computed on a time basis]; and an employer who is 
furnished by an employee a written statement of tips (received 
in a calendar month) pursuant to section 6053(a) to which 
paragraph (12)(B) of section 3121(a) is applicable may deduct 
an amount equivalent to such tax with respect to such tips from 
any wages of the employee (exclusive of tips) under his 
control, even though at the time such statement is furnished 
the total amount of the tips included in statements furnished 
to the employer as having been received by the employee in such 
calendar month in the course of his employment by such employer 
is less than $20.

           *       *       *       *       *       *       *


                   Subchapter C--General Provisions

           *       *       *       *       *       *       *


SEC. 3121. DEFINITIONS.

  (a) Wages.--For purposes of this chapter, the term ``wages'' 
means all remuneration for employment, including the cash value 
of all remuneration (including benefits) paid in any medium 
other than cash; except that such term shall not include--
          (1) * * *

           *       *       *       *       *       *       *

          (7)(A) remuneration paid in any medium other than 
        cash to an employee for service not in the course of 
        the employer's trade or business or for domestic 
        service in a private home of the employer; (B) cash 
        remuneration paid by an employer in any calendar year 
        to an employee for domestic service in a private home 
        of the employer (including domestic service [described 
        in subsection (g)(5)] on a farm operated for profit), 
        if the cash remuneration paid in such year by the 
        employer to the employee for such service is less than 
        the applicable dollar threshold (as defined in 
        subsection (x)) for such year;

           *       *       *       *       *       *       *

  (g) Agricultural Labor.--For purposes of this chapter, the 
term ``agricultural labor'' includes all service performed--
          (1) * * *

           *       *       *       *       *       *       *

          (5) on a farm operated for profit if such service is 
        not in the course of the employer's trade or business 
        [or is domestic service in a private home of the 
        employer]. As used in this subsection, the term 
        ``farm'' includes stock, dairy, poultry, fruit, fur-
        bearing animal, and truck farms, plantations, ranches, 
        nurseries, ranges, greenhouses or other similar 
        structures used primarily for the raising of 
        agricultural or horticultural commodities, and 
        orchards.

           *       *       *       *       *       *       *

                              ----------                              


 SECTION 302 OF THE TICKET TO WORK AND WORK INCENTIVES IMPROVEMENT ACT 
                                OF 1999


SEC. 302. DEMONSTRATION PROJECTS PROVIDING FOR REDUCTIONS IN DISABILITY 
                    INSURANCE BENEFITS BASED ON EARNINGS.

  (a)  * * *

           *       *       *       *       *       *       *

  [(f ) Expenditures.--Expenditures made for demonstration 
projects under this section shall be made from the Federal 
Disability Insurance Trust Fund and the Federal Old-Age and 
Survivors Insurance Trust Fund, as determined appropriate by 
the Commissioner of Social Security, and from the Federal 
Hospital Insurance Trust Fund and the Federal Supplementary 
Medical Insurance Trust Fund, as determined appropriate by the 
Secretary of Health and Human Services, to the extent provided 
in advance in appropriation Acts.]
  (f) Expenditures.--
          (1) In general.--Except as provided in paragraph (2), 
        expenditures made for the demonstration projects under 
        this section shall be made from the Federal Disability 
        Insurance Trust Fund and the Federal Old-Age and 
        Survivors Insurance Trust Fund, as determined 
        appropriate by the Commissioner of Social Security, and 
        from the Federal Hospital Insurance Trust Fund and the 
        Federal Supplementary Medical Insurance Trust Fund, as 
        determined appropriate by the Secretary of Health and 
        Human Services.
          (2) Administrative expenditures.--Administrative 
        expenditures for the demonstration projects under this 
        section incurred by the Commissioner of Social Security 
        shall be made from funds available pursuant to section 
        201(g) of the Social Security Act, to the extent or in 
        the amounts provided in advance in appropriation Acts.