Bill Summary
The "Beat Bad Bureaucrats Act" is legislation aimed at protecting certain individuals who are victims of identity theft from having their Social Security benefits garnished to repay specific types of loans from the Small Business Administration (SBA). Under this act, the SBA Administrator is prohibited from garnishing Social Security payments for individuals who have been identified as victims of identity theft related to covered loans, which include loans made under specific provisions of the Small Business Act and those provided during the COVID-19 pandemic.
The act outlines that garnishment is not permitted unless the SBA Administrator determines that the individual is not a victim of identity theft. Additionally, the SBA is required to update its regulations to include information on how individuals can report identity theft. The legislation is designed to provide financial protection to victims, ensuring that their essential benefits are safeguarded from improper repayment demands related to fraudulent loans.
Possible Impacts
Certainly! Here are three examples of how the "Beat Bad Bureaucrats Act" could affect people:
1. **Protection of Victims of Identity Theft**: Individuals who have fallen victim to identity theft will benefit from this legislation as it explicitly prevents the garnishment of their Social Security benefits to repay covered loans fraudulently taken out in their name. This provision helps ensure that victims have access to their essential income, which is crucial for their day-to-day living expenses, thereby providing them with financial security while they address the fallout from identity theft.
2. **Increased Awareness and Reporting**: The requirement for the Small Business Administration (SBA) to revise its regulations to include information on how to report identity theft may lead to greater awareness among individuals regarding their rights and the processes involved in reporting such crimes. This could empower victims to take action more promptly, potentially leading to quicker resolutions and improved protection against future incidents.
3. **Impact on Small Business Owners**: Small business owners who are victims of identity theft may find relief from the stress of having their Social Security benefits garnished while they navigate the complexities of resolving fraudulent loans. This can provide them with the necessary breathing room to focus on their business operations without the immediate pressure of debt repayment, ultimately contributing to their financial stability and the health of their businesses.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 886 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 886
To prohibit the Administrator of the Small Business Administration from
garnishing social security benefits with respect to certain named
individuals of covered loans who are victims of identity theft, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 31, 2025
Mr. Rulli (for himself, Mr. Graves, and Mr. Webster of Florida)
introduced the following bill; which was referred to the Committee on
the Judiciary
_______________________________________________________________________
A BILL
To prohibit the Administrator of the Small Business Administration from
garnishing social security benefits with respect to certain named
individuals of covered loans who are victims of identity theft, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Beat Bad Bureaucrats Act''.
SEC. 2. PROTECTION OF SOCIAL SECURITY BENEFITS FROM GARNISHMENT IN
CERTAIN CASES OF IDENTITY THEFT.
(a) In General.--Notwithstanding section 3716(c)(3)(A)(i) of title
31, United States Code, the Administrator may not, with respect to a
covered loan, garnish payments made to the named individual of such
covered loan under section 202 of the Social Security Act (42 U.S.C.
402 et seq.) for the purposes of repayment of such covered loan.
(b) Exception.--Subsection (a) does not apply if the Administrator
determines that the named individual is not a victim of identity theft.
(c) Revision of Rule.--Not later than 30 days after the date of the
enactment of this Act, the Administrator shall revise section
140.11(e)(1) of title 13, Code of Federal Regulations, to add to the
list of notice requirements in such section information about how to
report identity theft to the Administrator.
(d) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Small Business Administration.
(2) Covered loan.--The term ``covered loan'' means--
(A) a loan made under paragraph (36) or (37) of
section 7(a) of the Small Business Act (15 U.S.C.
636(a)); or
(B) a loan made under section 7(b) of such Act (15
U.S.C. 636(b)) in response to COVID-19 during the
covered period (as defined in section 1110(a) of the
CARES Act (15 U.S.C. 9009).
(3) Named individual.--The term ``named individual'' means
an individual--
(A) under whose name a covered loan was
fraudulently made; and
(B) that has notified the Administrator, using the
procedure posted on a public website of the Small
Business Administration, that such individual is a
victim of identity theft with respect to such covered
loan.
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