118 STAT. 3620 PUBLIC LAW 108–454—DEC. 10, 2004 fiduciary an amount equal to the amount of benefits that were so misused. ‘‘(2) There shall be considered to have been a negligent failure by the Secretary to investigate and monitor a fiduciary in the following cases: ‘‘(A) A case in which the Secretary failed to review a fiduciary’s accounting within 60 days of the date on which that accounting is scheduled for review. ‘‘(B) A case in which the Secretary was notified of allega- tions of misuse, but failed to act within 60 days of the date of such notification to terminate the fiduciary. ‘‘(C) In any other case in which actual negligence is shown. ‘‘(b) REISSUANCE OF MISUSED BENEFITS IN OTHER CASES.— (1) In any case in which a fiduciary described in paragraph (2) misuses all or part of an individual’s benefit paid to such fiduciary, the Secretary shall pay to the beneficiary or the beneficiary’s suc- cessor fiduciary an amount equal to the amount of such benefit so misused. ‘‘(2) Paragraph (1) applies to a fiduciary that— ‘‘(A) is not an individual; or ‘‘(B) is an individual who, for any month during a period when misuse occurs, serves 10 or more individuals who are beneficiaries under this title. ‘‘(3) In any other case in which the Secretary obtains recoupment from a fiduciary who has misused benefits, the Sec- retary shall promptly remit payment of the recouped amounts to the beneficiary or the beneficiary’s successor fiduciary as the case may be. ‘‘(c) LIMITATION ON TOTAL AMOUNT PAID.—The total of the amounts paid to a beneficiary (or a beneficiary’s successor fiduciary) under this section may not exceed the total benefit amount misused by the fiduciary with respect to that beneficiary. ‘‘(d) RECOUPMENT OF AMOUNTS REISSUED.—In any case in which the Secretary reissues a benefit payment (in whole or in part) under subsection (a) or (b), the Secretary shall make a good faith effort to obtain recoupment from the fiduciary to whom the payment was originally made.’’. (b) CLERICAL AMENDMENT.—The table of sections at the begin- ning of such chapter is amended by adding at the end the following new items: ‘‘6106. Misuse of benefits by fiduciaries. ‘‘6107. Reissuance of benefits.’’ . SEC. 504. ADDITIONAL PROTECTIONS FOR BENEFICIARIES WITH FIDUCIARIES. (a) ONSITE REVIEWS AND REQUIRED ACCOUNTINGS.—(1) Chapter 55, as amended by section 502(a), is further amended by adding at the end the following new sections: ‘‘§ 5508. Periodic onsite reviews of institutional fiduciaries ‘‘In addition to such other reviews of fiduciaries as the Secretary may otherwise conduct, the Secretary shall provide for the periodic onsite review of any person or agency located in the United States that receives the benefits payable under laws administered by the Secretary to another individual pursuant to the appointment of such person or agency as a fiduciary under section 5502(a)(1) of this title in any case in which the fiduciary is serving in that capacity with respect to more than 20 beneficiaries and the total Applicability. VerDate 11-MAY-2000 13:54 Nov 10, 2005 Jkt 029194 PO 00000 Frm 00154 Fmt 6580 Sfmt 6581 C:\STATUTES\2004\29194PT4.001 APPS10 PsN: 29194PT4
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