123STA T . 2 7 2 PUBLIC LA W 111 –5—FE B. 17 , 2 0 0 9aviol a t io n o f a pr ovi s ionoft h ispartifapr e li m inar y investi g a - tion of the fa c ts of the complaint in d icate s u ch a possi b le violation due to w illful neglect .’ ’. (2)ENFORCEM EN TU N D ER S OC IAL SECURIT Y ACT. —A ny viola- tion by a covered entity under thus subtitle is sub j ect to enforce- ment and penalties under section 1 1 76 and 1177 of the S ocial Security Act. (b) EFFECTI V E D ATE
- R
E G ULATIONS.— (1) T he amendments made by subsection (a) shall apply to penalties imposed on or after the date that is 2 4 months after the date of the enactment of this title. (2) N ot later than 1 8 months after the date of the enact- ment of this title , the Secretary of H ealth and Human Services shall promulgate regulations to implement such amendments. (c) DISTRI B UTION OF C ERTAIN CIVIL M ONETARY P ENALTIES COL- LECTED.— (1) I N GENERAL.—Subject to the regulation promulgated pursuant to paragraph ( 3 ), any civil monetary penalty or mone- tary settlement collected with respect to an offense punishable under this subtitle or section 1176 of the Social Security Act (42 U .S.C. 132 0 d –5 ) insofar as such section relates to privacy or security shall be transferred to the O ffice for Civil Rights of the Department of Health and Human Services to be used for purposes of enforcing the provisions of this subtitle and subparts C and E of part 164 of title 45, Code of F ederal Regulations, as such provisions are in effect as of the date of enactment of this Act. (2) G AO RE P ORT.—Not later than 18 months after the date of the enactment of this title, the Comptroller General shall submit to the Secretary a report including recommenda- tions for a methodology under which an individual who is harmed by an act that constitutes an offense referred to in paragraph (1) may receive a percentage of any civil monetary penalty or monetary settlement collected with respect to such offense. (3) ESTABLIS H MENT OF METHODOLOGY TO DISTRIBUTE PERCENTAGE OF CMPS COLLECTED TO HARMED INDIVIDUALS.— Not later than 3 years after the date of the enactment of this title, the Secretary shall establish by regulation and based on the recommendations submitted under paragraph (2), a methodology under which an individual who is harmed by an act that constitutes an offense referred to in paragraph (1) may receive a percentage of any civil monetary penalty or monetary settlement collected with respect to such offense. (4) APPLICATION OF METHODOLOGY.—The methodology under paragraph (3) shall be applied with respect to civil mone- tary penalties or monetary settlements imposed on or after the effective date of the regulation. (d) TIERED INCREASE IN AMOUNT OF CIVIL MONETARY PEN- ALTIES.— (1) IN GENERAL.—Section 1176(a)(1) of the Social Security Act (42 U.S.C. 1320d–5(a)(1)) is amended by stri k ing ‘ ‘who violates a provision of this part a penalty of not more than’’ and all that follows and inserting the following
‘‘who violates a provision of this part— ‘‘(A) in the case of a violation of such provision in which it is established that the person did not know (and Deadlin e . Deadline.
