Sec. 824. USE OF ELECTRONIC PAYROLL DATA TO IMPROVE PROGRAM ADMINISTRATION
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## SEC. 824 USE OF ELECTRONIC PAYROLL DATA TO IMPROVE PROGRAM ADMINISTRATION ###
(a)In general Title XI of the Social Security Act (42 U.S.C. 1301 et seq.) is amended by inserting after section 1183 the following: > > ## “SEC. 1184 INFORMATION EXCHANGE WITH PAYROLL DATA PROVIDERS > > **[**[42 U.S.C. 1320e-3](/us/usc/t42/s1320e-3)**]** > >
(a)In General.—The Commissioner of Social Security may enter into an information exchange with a payroll data provider for purposes of— > > > #### “(1) > > efficiently administering— > > > ##### “(A) > > monthly insurance benefits under subsections (d)(1)(B)(ii), (d)(6)(A)(ii), (d)(6)(B), (e)(1)(B)(ii), and (f)(1)(B)(ii) of section 202 and subsection (a)(1) of section 223; and > > > ##### “(B) > > supplemental security income benefits under title XVI; and > > > #### “(2) > > preventing improper payments of such benefits without the need for verification by independent or collateral sources. > > > ### “(b) Notification Requirements > > Before entering into an information exchange pursuant to subsection (a), the Commissioner shall publish in the Federal Register a notice describing the information exchange and the extent to which the information received through such exchange is— > > > #### “(1) > > relevant and necessary to— > > > ##### “(A) > > accurately determine entitlement to, and the amount of, benefits described under subparagraph
(A)of subsection (a)(1); > > > ##### “(B) > > accurately determine eligibility for, and the amount of, benefits described in subparagraph
(B)of such subsection; and > > > ##### “(C) > > prevent improper payment of such benefits; and > > > #### “(2) > > sufficiently accurate, up-to-date, and complete. > > > ### “(c) Definitions > > For purposes of this section: > > > #### “(1) Payroll data provider > > The term ‘payroll data provider’ means payroll providers, wage verification companies, and other commercial or non-commercial entities that collect and maintain data regarding employment and wages, without regard to whether the entity provides such data for a fee or without cost. > > > #### “(2) Information exchange > > The term ‘information exchange’ means the automated comparison of a system of records maintained by the Commissioner of Social Security with records maintained by a payroll data provider.” > . ###
(b)Authorization to Access Information Held by Payroll Data Providers ####
(1)Amendment to title ii Section 225 of the Social Security Act (42 U.S.C. 425) is amended by adding at the end the following: > > ### “(c) Access to Information Held by Payroll Data Providers > > > ####
(1)> > The Commissioner of Social Security may require each individual who applies for or is entitled to monthly insurance benefits under subsections (d)(1)(B)(ii), (d)(6)(A)(ii), (d)(6)(B), (e)(1)(B)(ii), and (f)(1)(B)(ii) of section 202 and subsection (a)(1) of section 223 to provide authorization by the individual for the Commissioner to obtain from any payroll data provider (as defined in section 1184(c)(1)) any record held by the payroll data provider with respect to the individual whenever the Commissioner determines the record is needed in connection with a determination of initial or ongoing entitlement to such benefits. > > > #### “(2) > > An authorization provided by an individual under this subsection shall remain effective until the earliest of— > > > ##### “(A) > > the rendering of a final adverse decision on the individual’s application or entitlement to benefits under this title; > > > ##### “(B) > > the termination of the individual’s entitlement to benefits under this title; or > > > ##### “(C) > > the express revocation by the individual of the authorization, in a written notification to the Commissioner. > > > #### “(3) > > The Commissioner of Social Security is not required to furnish any authorization obtained pursuant to this subsection to the payroll data provider. > > > #### “(4) > > The Commissioner shall inform any person who provides authorization pursuant to this clause of the duration and scope of the authorization. > > > #### “(5) > > If an individual who applies for or is entitled to benefits under this title refuses to provide, or revokes, any authorization under this subsection, subsection
(d)shall not apply to such individual beginning with the first day of the first month in which he or she refuses or revokes such authorization.” > . ####
(2)Title xvi Section 1631(e)(1)(B) of the Social Security Act (42 U.S.C. 1383(e)(1)(B)) is amended by adding at the end the following: > > ###### “(iii) > > > ######
(I)> > The Commissioner of Social Security may require each applicant for, or recipient of, benefits under this title to provide authorization by the applicant, recipient or legal guardian (or by any other person whose income or resources are material to the determination of the eligibility of the applicant or recipient for such benefits) for the Commissioner to obtain from any payroll data provider (as defined in section 1184(c)(1)) any record held by the payroll data provider with respect to the applicant or recipient (or any such other person) whenever the Commissioner determines the record is needed in connection with a determination of initial or ongoing eligibility or the amount of such benefits. > > > ###### “(II) > > An authorization provided by an applicant, recipient or legal guardian (or any other person whose income or resources are material to the determination of the eligibility of the applicant or recipient) under this clause shall remain effective until the earliest of— > > > ###### “(aa) > > the rendering of a final adverse decision on the applicant’s application for eligibility for benefits under this title; > > > ###### “(bb) > > the cessation of the recipient’s eligibility for benefits under this title; > > > ###### “(cc) > > the express revocation by the applicant, or recipient (or such other person referred to in subclause (I)) of the authorization, in a written notification to the Commissioner; or > > > ###### “(dd) > > the termination of the basis upon which the Commissioner considers another person’s income and resources available to the applicant or recipient. > > > ###### “(III) > > The Commissioner of Social Security is not required to furnish any authorization obtained pursuant to this clause to the payroll data provider. > > > ###### “(IV) > > The Commissioner shall inform any person who provides authorization pursuant to this clause of the duration and scope of the authorization. > > > ###### “(V) > > If an applicant for, or recipient of, benefits under this title (or any such other person referred to in subclause (I)) refuses to provide, or revokes, any authorization required by subclause (I), paragraph (2)(B) and paragraph
(10)shall not apply to such applicant or recipient beginning with the first day of the first month in which he or she refuses or revokes such authorization.” > . ###
(c)Reporting Responsibilities for Beneficiaries Subject to Information Exchange With Payroll Data Provider ####
(1)Amendment to title ii Section 225 of the Social Security (42 U.S.C. 425), as amended by subsection (b)(1), is further amended by adding at the end the following: > > ### “(d) > > An individual who has authorized the Commissioner of Social Security to obtain records from a payroll data provider under subsection
(c)shall not be subject to a penalty under section 1129A for any omission or error with respect to such individual’s wages as reported by the payroll data provider.” > . ####
(2)Amendment to title xvi Section 1631(e) of the Social Security Act (42 U.S.C. 1383(e)) is amended— #####
(A)in paragraph (2)— ######
(i)by striking “In the case of the failure” and inserting “(A) In the case of the failure”; ######
(ii)by redesignating subparagraphs
(A)through
(C)as clauses
(i)through (iii), respectively; and ######
(iii)by adding at the end the following: > > ##### “(B) > > For purposes of subparagraph (A), the Commissioner of Social Security shall find that good cause exists for the failure of, or delay by, an individual in submitting a report of an event or change in circumstances relevant to eligibility for or amount of benefits under this title in any case where— > > > ###### “(i) > > the individual (or another person referred to in paragraph (1)(B)(iii)(I)) has provided authorization to the Commissioner to access payroll data records related to the individual; and > > > ###### “(ii) > > the event or change in circumstance is a change in the individual’s employer.” > ; and #####
(B)by adding at the end the following: > > #### “(10) > > An individual who has authorized the Commissioner of Social Security to obtain records from a payroll data provider under paragraph (1)(B)(iii) (or on whose behalf another person described in subclause
(I)of such paragraph has provided such authorization) shall not be subject to a penalty under section 1129A for any omission or error with respect to such individual’s wages as reported by the payroll data provider.” > . ###
(d)Regulations **[**[42 U.S.C. 1320e-3 note](/us/usc/t42/s1320e-3)**]** Not later than 1 year after the date of the enactment of this Act, the Commissioner of Social Security shall prescribe by regulation procedures for implementing the Commissioner’s access to and use of information held by payroll providers, including— ####
(1)guidelines for establishing and maintaining information exchanges with payroll providers, pursuant to section 1184 of the Social Security Act; ####
(2)beneficiary authorizations; ####
(3)reduced wage reporting responsibilities for individuals who authorize the Commissioner to access information held by payroll data providers through an information exchange; and ####
(4)procedures for notifying individuals in writing when they become subject to such reduced wage reporting requirements and when such reduced wage reporting requirements no longer apply to them. ###
(e)Effective Date **[**[42 U.S.C. 425 note](/us/usc/t42/s425)**]** The amendments made by this section shall take effect on the date that is 1 year after the date of the enactment of this Act.
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Sec. 824
USE OF ELECTRONIC PAYROLL DATA TO IMPROVE PROGRAM ADMINISTRATION
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