42 U.S.C. § 1307 — Penalty for fraud

Page 2559 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1307 (A) to certify persons who are eligible to access the information described in sub- section (a) contained on the Death Master File, and (B) to perform periodic and unscheduled audits of certified persons to determine the compliance by such certified persons with the requirements of the program. (2) Certification A person shall not be certified under the pro- gram established under paragraph (1) unless such person certifies that access to the infor- mation described in subsection (a) is appro- priate because such person— (A) has— (i) a legitimate fraud prevention inter- est, or (ii) a legitimate business purpose pursu- ant to a law, governmental rule, regula- tion, or fiduciary duty, and (B) has systems, facilities, and procedures in place to safeguard such information, and experience in maintaining the confiden- tiality, security, and appropriate use of such information, pursuant to requirements simi- lar to the requirements of section 6103(p)(4) of the Internal Revenue Code of 1986, and (C) agrees to satisfy the requirements of such section 6103(p)(4) as if such section ap- plied to such person. (3) Fees (A) In general The Secretary of Commerce shall establish under section 9701 of title 31 a program for the charge of fees sufficient to cover (but not to exceed) all costs associated with eval- uating applications for certification and au- diting, inspecting, and monitoring certified persons under the program. Any fees so col- lected shall be deposited and credited as off- setting collections to the accounts from which such costs are paid. (B) Report The Secretary of Commerce shall report on an annual basis to the Committee on Fi- nance of the Senate and the Committee on Ways and Means of the House of Representa- tives on the total fees collected during the preceding year and the cost of administering the certification program under this sub- section for such year. (c) Imposition of penalty (1) In general Any person who is certified under the pro- gram established under subsection (b), who re- ceives information described in subsection (a), and who during the period of time described in subsection (a)— (A) discloses such information to any per- son other than a person who meets the re- quirements of subparagraphs (A), (B), and (C) of subsection (b)(2), (B) discloses such information to any per- son who uses the information for any pur- pose not listed under subsection (b)(2)(A) or who further discloses the information to a person who does not meet such require- ments, or (C) uses any such information for any pur- pose not listed under subsection (b)(2)(A), and any person to whom such information is disclosed who further discloses or uses such in- formation as described in the preceding sub- paragraphs, shall pay a penalty of $1,000 for each such disclosure or use. (2) Limitation on penalty (A) In general The total amount of the penalty imposed under this subsection on any person for any calendar year shall not exceed $250,000. (B) Exception for willful violations Subparagraph (A) shall not apply in the case of violations under paragraph (1) that the Secretary of Commerce determines to be willful or intentional violations. (d) Death Master File For purposes of this section, the term ‘‘Death Master File’’ means information on the name, social security account number, date of birth, and date of death of deceased individuals main- tained by the Commissioner of Social Security, other than information that was provided to such Commissioner under section 405(r) of this title. (e) Exemption from Freedom of Information Act requirement with respect to certain records of deceased individuals (1) In general No Federal agency shall be compelled to dis- close the information described in subsection (a) to any person who is not certified under the program established under subsection (b). (2) Treatment of information For purposes of section 552 of title 5, this section shall be considered a statute described in subsection (b)(3) of such section 552. (f) Effective date (1) In general Except as provided in paragraph (2), this sec- tion shall take effect on the date that is 90 days after December 26, 2013. (2) FOIA exemption Subsection (e) shall take effect on December 26, 2013. (Pub. L. 113–67, div. A, title II, § 203, Dec. 26, 2013, 127 Stat. 1177.) Editorial Notes REFERENCES IN TEXT The Internal Revenue Code of 1986, referred to in sub- sec. (b)(2)(B), is classified generally to Title 26, Internal Revenue Code. CODIFICATION Section was enacted as part of the Bipartisan Budget Act of 2013, and not as part of the Social Security Act which comprises this chapter. § 1307. Penalty for fraud (a) Whoever, with the intent to defraud any person, shall make or cause to be made any false representation concerning the requirements of Page 2560 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1308 this chapter, of chapter 2, 21, or 23 of the Inter- nal Revenue Code of 1986, or of any provision of subtitle F of such Code which corresponds (with- in the meaning of section 7852(b) of such Code) to a provision contained in subchapter E of chapter 9 of the Internal Revenue Code of 1939, or of any rules or regulations issued thereunder, knowing such representations to be false, shall be deemed guilty of a misdemeanor, and, upon conviction thereof, shall be punished by a fine not exceeding $1,000, or by imprisonment not ex- ceeding one year, or both. (b) Whoever, with the intent to elicit informa- tion as to the social security account number, date of birth, employment, wages, or benefits of any individual (1) falsely represents to the Com- missioner of Social Security or the Secretary that he is such individual, or the wife, husband, widow, widower, divorced wife, divorced hus- band, surviving divorced wife, surviving di- vorced husband, surviving divorced mother, sur- viving divorced father, child, or parent of such individual, or the duly authorized agent of such individual, or of the wife, husband, widow, wid- ower, divorced wife, divorced husband, surviving divorced wife, surviving divorced husband, sur- viving divorced mother, surviving divorced fa- ther, child, or parent of such individual, or (2) falsely represents to any person that he is an employee or agent of the United States, shall be deemed guilty of a felony, and, upon conviction thereof, shall be punished by a fine not exceed- ing $10,000 for each occurrence of a violation, or by imprisonment not exceeding 5 years, or both. (Aug. 14, 1935, ch. 531, title XI, § 1107, as added Aug. 10, 1939, ch. 666, title VIII, § 802, 53 Stat. 1398; amended Aug. 28, 1950, ch. 809, title IV, § 403(e), (f), 64 Stat. 560; Pub. L. 98–369, div. B, title VI, § 2663(e)(2)(A), (3), (j)(2)(D)(iii), (l)(1), July 18, 1984, 98 Stat. 1168, 1170, 1171; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 103–296, title I, § 108(b)(6), title III, § 313(b), Aug. 15, 1994, 108 Stat. 1482, 1530.) Editorial Notes REFERENCES IN TEXT Subchapter E of chapter 9 of the Internal Revenue Code of 1939, referred to in subsec. (a), was comprised of sections 1631 to 1636 of the 1939 Code, and was repealed (subject to certain exceptions) by section 7851(a)(1)(A), (3) of the Internal Revenue Code of 1954, Title 26. The Internal Revenue Code of 1954 was redesignated the In- ternal Revenue Code of 1986 by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095. For table of comparisons of the 1939 Code to the 1986 Code, see Table I preceding section 1 of Title 26, Internal Revenue Code. See also section 7852(b) of Title 26 for provision that references in any other law to a provision of the 1939 Code, unless ex- pressly incompatible with the intent thereof, shall be deemed a reference to the corresponding provision of the 1986 Code. For provision deeming a reference in other laws to a provision of the 1939 Code as a reference to the cor- responding provisions of the 1986 Code, see section 7852(b) of the 1986 Code. For table of comparisons of the 1939 Code to the 1986 Code, see table preceding section 1 of Title 26, Internal Revenue Code. The Internal Rev- enue Code of 1986 is classified generally to Title 26. AMENDMENTS 1994—Subsec. (b). Pub. L. 103–296, § 313(b), inserted ‘‘social security account number,’’ after ‘‘information as to the’’ and substituted ‘‘felony’’ for ‘‘mis- demeanor’’, ‘‘$10,000 for each occurrence of a violation’’ for ‘‘$1,000’’, and ‘‘5 years’’ for ‘‘one year’’. Pub. L. 103–296, § 108(b)(6), which directed that subsec. (b) be amended by substituting ‘‘the Commissioner of Social Security or the Secretary’’ for ‘‘the Secretary of Health and Human Services’’, was executed by making the substitution for ‘‘the Secretary’’ to reflect the probable intent of Congress. 1986—Subsec. (a). Pub. L. 99–514 substituted ‘‘Internal Revenue Code of 1986’’ for ‘‘Internal Revenue Code of 1954’’. 1984—Subsec. (a). Pub. L. 98–369, § 2663(e)(2)(A), sub- stituted ‘‘of chapter 2, 21, or 23 of the Internal Revenue Code of 1954, or of any provision of subtitle F of such Code which corresponds (within the meaning of section 7852(b) of such Code) to a provision contained in sub- chapter E of chapter 9 of the Internal Revenue Code of 1939,’’ for ‘‘subchapter E of chapter 1 or subchapter A, C, or E of chapter 9 of the Internal Revenue Code [of 1939]’’. Subsec. (b). Pub. L. 98–369, § 2663(l)(1), substituted ‘‘Secretary’’ for ‘‘Administrator’’. Pub. L. 98–369, § 2663(j)(2)(D)(iii), which directed the substitution of ‘‘Health and Human Services’’ for ‘‘Health, Education, and Welfare’’ could not be exe- cuted because ‘‘Health, Education, and Welfare’’ did not appear in text. Pub. L. 98–369, § 2663(e)(3), substituted ‘‘divorced wife, divorced husband, surviving divorced wife, surviving di- vorced husband, surviving divorced mother, surviving divorced father,’’ for ‘‘former wife divorced,’’ in two places. 1950—Subsec. (a). Act Aug. 28, 1950, § 403(e), sub- stituted ‘‘subchapter E of chapter 1 or subchapter A, C, or E of chapter 9 of the Internal Revenue Code of 1939,’’ for ‘‘the Federal Insurance Contributions Act, or the Federal Unemployment Tax Act,’’. Subsec. (b). Act Aug. 28, 1950, § 403(f), substituted ‘‘Ad- ministrator’’ for ‘‘Board’’ and ‘‘wife, husband, widow, widower, former wife divorced, child, or parent’’ for ‘‘wife, parent, or child’’ wherever appearing. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1994 AMENDMENT Amendment by section 108(b)(6) of Pub. L. 103–296 ef- fective Mar. 31, 1995, see section 110(a) of Pub. L. 103–296, set out as a note under section 401 of this title. Amendment by section 313(b) of Pub. L. 103–296 appli- cable to violations occurring on or after Aug. 15, 1994, see section 313(c) of Pub. L. 103–296, set out as a note under section 1306 of this title. EFFECTIVE DATE OF 1984 AMENDMENT Pub. L. 98–369, div. B, title VI, § 2663(e)(2)(B), July 18, 1984, 98 Stat. 1168, provided that: ‘‘The amendment made by subparagraph (A) [amending this section] shall not apply to returns filed or representations made on or before the date of the enactment of this Act [July 18, 1984].’’ Amendment by section 2663(e)(3), (j)(2)(D)(iii), (l)(1) of Pub. L. 98–369 effective July 18, 1984, but not to be con- strued as changing or affecting any right, liability, sta- tus, or interpretation which existed (under the provi- sions of law involved) before that date, see section 2664(b) of Pub. L. 98–369, set out as a note under section 401 of this title. § 1308. Additional grants to Puerto Rico, Virgin Islands, Guam, and American Samoa; limita- tion on total payments (a) Limitation on total payments to each terri- tory (1) In general Notwithstanding any other provision of this chapter (except for paragraph (2) of this sub-