I
119THCONGRESS
1
STSESSION H. R. 886
To prohibit the Administrator of the Small Business Administration from
garnishing social security benefits with respect to certain named individ-
uals of covered loans who are victims of identity theft, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY31, 2025
Mr. R
ULLI(for himself, Mr. GRAVES, and Mr. WEBSTERof Florida) intro-
duced the following bill; which was referred to the Committee on the Ju-
diciary
A BILL
To prohibit the Administrator of the Small Business Admin-
istration 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 Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Beat Bad Bureaucrats 4
Act’’. 5
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SEC. 2. PROTECTION OF SOCIAL SECURITY BENEFITS 1
FROM GARNISHMENT IN CERTAIN CASES OF 2
IDENTITY THEFT. 3
(a) I
NGENERAL.—Notwithstanding section 4
3716(c)(3)(A)(i) of title 31, United States Code, the Ad-5
ministrator may not, with respect to a covered loan, gar-6
nish payments made to the named individual of such cov-7
ered loan under section 202 of the Social Security Act (42 8
U.S.C. 402 et seq.) for the purposes of repayment of such 9
covered loan. 10
(b) E
XCEPTION.—Subsection (a) does not apply if 11
the Administrator determines that the named individual 12
is not a victim of identity theft. 13
(c) R
EVISION OFRULE.—Not later than 30 days 14
after the date of the enactment of this Act, the Adminis-15
trator shall revise section 140.11(e)(1) of title 13, Code 16
of Federal Regulations, to add to the list of notice require-17
ments in such section information about how to report 18
identity theft to the Administrator. 19
(d) D
EFINITIONS.—In this section: 20
(1) A
DMINISTRATOR.—The term ‘‘Adminis-21
trator’’ means the Administrator of the Small Busi-22
ness Administration. 23
(2) C
OVERED LOAN.—The term ‘‘covered loan’’ 24
means— 25
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(A) a loan made under paragraph (36) or 1
(37) of section 7(a) of the Small Business Act 2
(15 U.S.C. 636(a)); or 3
(B) a loan made under section 7(b) of such 4
Act (15 U.S.C. 636(b)) in response to COVID– 5
19 during the covered period (as defined in sec-6
tion 1110(a) of the CARES Act (15 U.S.C. 7
9009). 8
(3) N
AMED INDIVIDUAL.—The term ‘‘named in-9
dividual’’ means an individual— 10
(A) under whose name a covered loan was 11
fraudulently made; and 12
(B) that has notified the Administrator, 13
using the procedure posted on a public website 14
of the Small Business Administration, that such 15
individual is a victim of identity theft with re-16
spect to such covered loan. 17
Æ
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