View all text of Subchapter VIII [§ 1001 - § 1013]
§ 1007. Representative payees
(a) In general
(b) Examination of fitness of prospective representative payee
(1) Any determination under subsection (a) to pay the benefits of a qualified individual to a representative payee shall be made on the basis of—
(A) an investigation by the Commissioner of Social Security of the person to serve as representative payee, which shall be conducted in advance of the determination and shall, to the extent practicable, include a face-to-face interview with the person (or, in the case of an organization, a representative of the organization); and
(B) adequate evidence that the arrangement is in the interest of the qualified individual.
(2) As part of the investigation referred to in paragraph (1), the Commissioner of Social Security shall—
(A) require the person being investigated to submit documented proof of the identity of the person;
(B) in the case of a person who has a social security account number issued for purposes of the program under subchapter II or an employer identification number issued for purposes of the Internal Revenue Code of 1986, verify the number;
(C) determine whether the person has been convicted of a violation of section 408, 1011, or 1383a of this title;
(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;
(E) obtain information concerning whether such person is a person described in section 1004(a)(2) of this title;
(F) determine whether payment of benefits to the person in the capacity as representative payee has been revoked or terminated pursuant to this section, section 405(j) of this title, or section 1383(a)(2)(A)(iii) of this title by reason of misuse of funds paid as benefits under this subchapter, subchapter II, or XVI, respectively, and
(G) determine whether such person has been convicted (and not subsequently exonerated), under Federal or State law, of a felony provided under paragraph (4), or of an attempt or a conspiracy to commit such a felony.
(3) Notwithstanding the provisions of section 552a of title 5 or any other provision of Federal or State law (other than section 6103 of the Internal Revenue Code of 1986 and section 1306(c) of this title), the Commissioner shall furnish any Federal, State, or local law enforcement officer, upon the written request of the officer, with the current address, social security account number, and photograph (if applicable) of any person investigated under this subsection, if the officer furnishes the Commissioner with the name of such person and such other identifying information as may reasonably be required by the Commissioner to establish the unique identity of such person, and notifies the Commissioner that—
(A) such person is described in section 1004(a)(2) of this title,
(B) such person has information that is necessary for the officer to conduct the officer’s official duties, and
(C) the location or apprehension of such person is within the officer’s official duties.
(4) The felony crimes provided under this paragraph, whether an offense under State or Federal law, are the following:
(A) Human trafficking, including as prohibited under sections 1590 and 1591 of title 18.
(B) False imprisonment, including as prohibited under section 1201 of title 18.
(C) Kidnapping, including as prohibited under section 1201 of title 18.
(D) Rape and sexual assault, including as prohibited under sections 2241, 2242, 2243, and 2244 of title 18.
(E) First-degree homicide, including as prohibited under section 1111 of title 18.
(F) Robbery, including as prohibited under section 2111 of title 18.
(G) Fraud to obtain access to government assistance, including as prohibited under sections 287, 1001, and 1343 of title 18.
(H) Fraud by scheme, including as prohibited under section 1343 of title 18.
(I) Theft of government funds or property, including as prohibited under section 641 of title 18.
(J) Abuse or neglect, including as prohibited under sections 111, 113, 114, 115, 116, or 117 of title 18.
(K) Forgery, including as prohibited under section 642 and chapter 25 (except section 512) of title 18.
(L) Identity theft or identity fraud, including as prohibited under sections 1028 and 1028A of title 18.
The Commissioner of Social Security may promulgate regulations to provide for additional felony crimes under this clause.
(5)
(A) For the purpose of carrying out the activities required under paragraph (2) as part of the investigation under paragraph (1)(A), the Commissioner may conduct a background check of any individual seeking to serve as a representative payee under this subsection and may disqualify from service as a representative payee any such individual who fails to grant permission for the Commissioner to conduct such a background check.
(B) The Commissioner may revoke certification of payment of benefits under this subsection to any individual serving as a representative payee on or after January 1, 2019 who fails to grant permission for the Commissioner to conduct such a background check.
(c) Requirement for maintaining lists of undesirable payeesThe Commissioner of Social Security shall establish and maintain lists which shall be updated periodically and which shall be in a form that renders such lists available to the servicing offices of the Social Security Administration. The lists shall consist of—
(1) the names and (if issued) social security account numbers or employer identification numbers of all persons with respect to whom, in the capacity of representative payee, the payment of benefits has been revoked or terminated under this section, section 405(j) of this title, or section 1383(a)(2)(A)(iii) of this title by reason of misuse of funds paid as benefits under this subchapter, subchapter II, or XVI, respectively; and
(2) the names and (if issued) social security account numbers or employer identification numbers of all persons who have been convicted of a violation of section 408, 1011, or 1383a of this title.
(d) Persons ineligible to serve as representative payees
(1) In generalThe benefits of a qualified individual may not be paid to any other person pursuant to this section if—
(A) the person has been convicted of a violation of section 408, 1011, or 1383a of this title;
(B) except as provided in paragraph (2), payment of benefits to the person in the capacity of representative payee has been revoked or terminated under this section, section 405(j) of this title, or section 1383(a)(2)(A)(ii) 1
1 So in original. Probably should be “1383(a)(2)(A)(iii)”.
of this title by reason of misuse of funds paid as benefits under this subchapter, subchapter II, or subchapter XVI, respectively;(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;
(D) 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;
(E) such person is a person described in section 1004(a)(2) of this title,
(F) except as provided in paragraph (2)(D), such person has previously been convicted (and not subsequently exonerated) as described in subsection (b)(2)(G), or
(G) such person’s benefits under this subchapter, subchapter II, or subchapter XVI are certified for payment to a representative payee during the period for which the individual’s benefits would be certified for payment to another person.
(2) Exemptions
(A) The Commissioner of Social Security may prescribe circumstances under which the Commissioner of Social Security may grant an exemption from paragraph (1) to any person on a case-by-case basis if the exemption is in the best interest of the qualified individual whose benefits would be paid to the person pursuant to this section.
(B) Paragraph (1)(C) shall not apply with respect to any person who is a creditor referred to in such paragraph if the creditor is—
(i) a relative of the qualified individual and the relative resides in the same household as the qualified individual;
(ii) a legal guardian or legal representative of the individual;
(iii) a facility that is licensed or certified as a care facility under the law of the political jurisdiction in which the qualified individual resides;
(iv) a person who is an administrator, owner, or employee of a facility referred to in clause (iii), if the qualified individual resides in the facility, and the payment to the facility or the person is made only after the Commissioner of Social Security has made a good faith effort to locate an alternative representative payee to whom payment would serve the best interests of the qualified individual; or
(v) a person who is determined by the Commissioner of Social Security, on the basis of written findings and pursuant to procedures prescribed by the Commissioner of Social Security, to be acceptable to serve as a representative payee.
(C) The procedures referred to in subparagraph (B)(v) shall require the person who will serve as representative payee to establish, to the satisfaction of the Commissioner of Social Security, that—
(i) the person poses no risk to the qualified individual;
(ii) the financial relationship of the person to the qualified individual poses no substantial conflict of interest; and
(iii) no other more suitable representative payee can be found.
(D)
(i) With respect to any person described in clause (II)—(I) subsection (b)(2)(G) shall not apply; and(II) the Commissioner may grant an exemption from the provisions of paragraph (1)(F) if the Commissioner determines that such exemption is in the best interest of the individual entitled to benefits.
(ii) A person is described in this clause if the person—(I) is the custodial spouse of the beneficiary for whom the person applies to serve;(II) is the custodial court appointed guardian of the beneficiary for whom the person applies to serve; or(III) received a presidential or gubernatorial pardon for the relevant conviction.
(e) Deferral of payment pending appointment of representative payee
(1) In general
(2) Time limitation
(A) In general
(B) Exception in the case of incompetency
(3) Payment of retroactive benefits
(f) Hearing
(g) Notice requirements
(1) In general
(2) Specific requirementsAny notice required by paragraph (1) shall be clearly written in language that is easily understandable to the reader, shall identify the person to be designated as the qualified individual’s representative payee, and shall explain to the reader the right under subsection (f) of the qualified individual or of the qualified individual’s legal guardian or legal representative—
(A) to appeal a determination that a representative payee is necessary for the qualified individual;
(B) to appeal the designation of a particular person to serve as the representative payee of the qualified individual; and
(C) to review the evidence upon which the designation is based and to submit additional evidence.
(h) Accountability monitoring
(1) In general
(2) Special reports
(3) Eligibility for exemption
(A) Paragraph (1) shall not apply in any case where the other person to whom such payment is made is the spouse of the individual entitled to such payment.
(B) The Commissioner of Social Security shall establish and implement procedures as necessary for the Commissioner to determine the eligibility of such parties for the exemption provided in subparagraph (A). The Commissioner shall prescribe such regulations as may be necessary to determine eligibility for such exemption.
(4) Authority to redirect delivery of benefit payments when a representative payee fails to provide required accounting
(5) Maintaining lists of payeesThe 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 405(j) of this title, or section 1383(a)(2) of this title; 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 405(j) of this title, or section 1383(a)(2) of this title.
(6) Maintaining lists of agencies
(i) RestitutionIn 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 that
(A) 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 subchapter, subchapter II, subchapter XVI, or any combination of such subchapters;
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 (l)(2). The Commissioner of Social Security shall make a good faith effort to obtain restitution from the terminated representative payee.
(j) Misuse of benefits
(k) Periodic onsite review
(1) In generalIn addition to such other reviews of representative payees as the Commissioner of Social Security may otherwise conduct, the Commissioner may provide for the periodic onsite review of any person or agency that receives the benefits payable under this subchapter (alone or in combination with benefits payable under subchapter II or subchapter XVI) to another individual pursuant to the appointment of such person or agency as a representative payee under this section, section 405(j) of this title, or section 1383(a)(2) of this title 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; or
(B) the representative payee is an agency that serves in that capacity with respect to 50 or more such individuals.
(2) ReportWithin 120 days after the end of each fiscal year, the Commissioner shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report on the results of periodic onsite reviews conducted during the fiscal year pursuant to paragraph (1) and of any other reviews of representative payees conducted during such fiscal year in connection with benefits under this subchapter. Each such report shall describe in detail all problems identified in such reviews and any corrective action taken or planned to be taken to correct such problems, and shall include—
(A) the number of such reviews;
(B) the results of such reviews;
(C) the number of cases in which the representative payee was changed and why;
(D) the number of cases involving the exercise of expedited, targeted oversight of the representative payee by the Commissioner conducted upon receipt of an allegation of misuse of funds, failure to pay a vendor, or a similar irregularity;
(E) the number of cases discovered in which there was a misuse of funds;
(F) how any such cases of misuse of funds were dealt with by the Commissioner;
(G) the final disposition of such cases of misuse of funds, including any criminal penalties imposed; and
(H) such other information as the Commissioner deems appropriate.
(l) Liability for misused amounts
(1) In general
(2) Limitation
(Aug. 14, 1935, ch. 531, title VIII, § 807, as added Pub. L. 106–169, title II, § 251(a), Dec. 14, 1999, 113 Stat. 1846; amended Pub. L. 108–203, title I, §§ 101(b), 102(b)(2), 103(b), 105(b), 106(b), Mar. 2, 2004, 118 Stat. 495, 499, 501, 504, 506; Pub. L. 115–165, title I, § 102(b), title II, §§ 202(b), 203(b), Apr. 13, 2018, 132 Stat. 1260, 1268, 1272.)