118 STAT. 507 PUBLIC LAW 108–203—MAR. 2, 2004 Subtitle B—Enforcement SEC. 111. CIVIL MONETARY PENALTY AUTHORITY WITH RESPECT TO WRONGFUL CONVERSIONS BY REPRESENTATIVE PAYEES. (a) IN GENERAL.—Section 1129(a) of the Social Security Act (42 U.S.C. 1320a–8) is amended by adding at the end the following: ‘‘(3) 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 such conversion. Such person shall also 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 any payments so converted.’’. (b) EFFECTIVE DATE.—The amendment made by this section shall apply with respect to violations committed after the date of the enactment of this Act. TITLE II—PROGRAM PROTECTIONS SEC. 201. CIVIL MONETARY PENALTY AUTHORITY WITH RESPECT TO WITHHOLDING OF MATERIAL FACTS. (a) TREATMENT OF WITHHOLDING OF MATERIAL FACTS.— (1) CIVIL PENALTIES.—Section 1129(a)(1) of the Social Secu rity 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 represen tation 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 person 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 person 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,’’; Applicability. 42 USC 1320a–8 note.
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