ÿWPCµ …# VUNa %¯ 0(µw@Ý4 1 @ 0lH 0D´ 0Jø 0TB 0^– 0hô 0r\ 0|Î 0†J 0Ð 1u` 0dÕ U>9B)w B DC½ AMU*Mëwêbv~LvÓÊ D3 0@Ð AOÆ_ 0D% D/i B˜˜HP LaserJet 4Si/4SiMX PS 600dpiPSCRIPTÀÌÀääÀÀÌ0 (ÈhH  Z ‹6Times New Roman RegularX($¡¡ µ ¶ D· ¸ D¹ º » E¼ ½ Ó€É z!3|xÉ ((3üÝ$¤¤Ý ƒ!ÝÝ  Ýà  àòòÚ  Ú0Ú  Úóó(#Ã$òòÚ  Ú0Ú  Úóó2 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)P ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ< Œ 9p`(&Times New Roman% Line 7 d d!!!!7Border 1dd€-#Cþÿ << Gÿÿ< Œ 9p`(Arial áÝ ƒ!ÝÔ€ ÔÝ  ÝÔ€%ÔÔ€%ÔÓ  ÓÔ YYY ÔFILEDÔ€%XÔÌÌò òOctober€9,€1996ÌÌCecil€Crowson,€Jr.ÌÔ€%ôÔAppellate€Court€Clerkó ó àÝ ƒ!ÝÑ#€d#ÑÔ€ ÔÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝOnly€the€SSA,€however,€has€the€authority€to€decertify€a€representative€payee.€ÌPtPtHHÚ(ÿáÿâùFG(üHHÚ(d'@Styl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$ÿÐÐHHÐÐÐÐÐÐÐÐ  ÐÐ ÐÐ ÐÑÑÑGenevaÑÑ ÑÑ € ÑÑ<Px–ÈÑÒÒÒ443!#4ÒÒ$ *$ÒÒ$*$ÒÒ ÿKK ÒÒ  Geneva ÒÒ  Geneva ÒÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßÑGenevaÑÑ ÑÒ  BA Op Geneva ÒÒ  BA Op Geneva Ò""""'ÿÿdxd("ÿÿ$££Ò  ÒÒ  Ò€-‚ƒCþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5($$””ò òÚ  Ú1Ú  Úó ó„„'÷ÿ dxdüÿP PdÝ ƒ!ÝÔ . ÔÔ€ ÔÝ  Ýò òÑ\R AØ'\Ñ›à@ àIN€THE€COURT€OF€APPEALS€OF€TENNESSEEó óÌà@ àò òWESTERN€SECTION€AT€JACKSONÌà àà àà àòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€ÌÌóóÌGRACE€THRU€œFAITH,›€€€€à àà àà à)à àÌà àà àà àà àà àà à)à àÌà àœó óPetitioner/Appellant,ò ò›à àà àà à)à àó óWeakley€Equity€No.€13194Ìà àà àà àà àà àà àò ò)Ìvs.à àà àà àà àà àà à)à à€Ìà àà àà àà àà àà à)ÌTONY€L.€CALDWELL,€€€€€€€€€€€€€€€€€€€à à)à àó óAppeal€No.€02A01„9502„CH„00026ò òÌà àà à€€€€€€€€€€€€€€€€€€€€€à àà àà à)Ìó óà àœRespondent/Appellee›€à àò òà àœ)›à àÌà àà àà àà àà àà à)Ìó óandò òà àà àà àà àà àà à)Ìà àà àà àà àà àà à)ÌÙ€€ÙœßL€$&#;+'h|öýæ` Å `€€Lß›TONY€L.€CALDWELL€and€JOANN€P.à à)ÌCALDWELL€TRUST,à àà àà à)Ìà àà àà àà àà àà à)Ìà àœó óIntervening€Plaintiffs/Appellees›à àœò ò)›Ìà àà àà àà àà àà à)Ìvs.à àà àà àà àà àà à)Ìà àà àà àà àà àà à)ÌEDWARD€IRWIN€and€à àà àà à)ÌREBECCA€IRWIN,à àà àà àà à)Ìà àà àà àà àà àà à)Ìà àœó óIntervening€Petitioners/Defendants/à àò ò)ó óÌà àAppellants.›à àà àà àà àò ò)ó óòòÌóóò òÌ€€€Ìà@ àó óAPPEAL€FROM€THE€CHANCERY€COURT€OF€WEAKLEY€COUNTYÌà@ àAT€DRESDEN,€TENNESSEEÌÌÌà@ àTHE€HONORABLE€WILLIAM€MICHAEL€MALOAN,€CHANCELLORÌòòÌÌFor€the€œPetitioner/Intervening€óóà àà àòòFor€the€Respondent/Intervening€Plaintiffs/›ÌœPetitioners/€Defendants/Appellantsó󛀀à àà àœòòAppelleesóó›ÌH.€Max€Speight€€€à àà àà àà àHarold€T.€BrundigeÌœJeffrey€W.€Parhamà àà àà àà àMartin,›€œTennesseeÌMartin,›€Tennessee€Ì€€€€€€€€€€€€€€€€€€€Ìò òÌà@ à€€€€€€€€AFFIRMED€ÌÌÌà àà àà àà àà àà àó óHOLLY€KIRBY€LILLARD,€J.ÌÌÌÌCONCUR:ÌÌòòÌóóALAN€E.€HIGHERS,€J.€ÌÌÌDAVID€R.€FARMER,€J.ÇØØÙ  ÙÓ  ÓÑ7€õsXXdìXXdì7Ñà@ àÓÓò òÑ  Ñà@ àOPINIONó óÌà àThis€is€a€case€involving€a€trusteeððs€improper€accounting€procedures€and€misuse€of€fundsÏregarding€a€trust€set€up€to€receive€Social€Security€Insurance€payments.€€At€issue€is€whetherÏTennessee€state€courts€have€subject€matter€jurisdiction€to€hear€a€dispute€between€a€beneficiary€andÏhis€representative€payee€over€alleged€misuse€of€Social€Security€benefits.€€The€trial€court€found€itÏhad€jurisdiction.€€We€affirm.Ìà àEdward€Irwin,€an€ordained€minister,€and€his€wife,€Rebecca€Irwin€(the€Irwins),€are€officersÏin€a€non„profit€organization€named€Grace€Thru€Faith€Ministries€(Grace€Thru€Faith).€€In€1989,ÏEdward€Irwin€(Irwin)€met€Tony€Caldwell€(Caldwell).€€Caldwell€had€been€receiving€Social€SecurityÏbenefits€and€Supplemental€Security€Income€(SSI).€€Irwin€and€Caldwell€ultimately€agreed€that€IrwinÏwould€become€Caldwellððs€representative€payee,€and€the€Social€Security€Administration€(SSA)Ïsubsequently€certified€Irwin€as€such.€€As€representative€payee,€Irwin€received€Caldwellððs€benefitÏpayments€on€behalf€of€Caldwell€and€for€his€use.Ìà àLater,€the€SSA€determined€that€Caldwell€was€entitled€to€back€payments€totalingÏapproximately€$40,000.€€Receipt€of€this€lump„sum€payment,€however,€would€put€Caldwell€inÏdanger€of€losing€his€SSI€benefits.€€The€SSA€recommended€ways€to€avoid€this€result,€includingÏestablishing€a€trust€for€receipt€of€the€lump„sum€payment,€with€the€trust€to€be€administered€byÏsomeone€besides€Caldwell.€€Irwin€set€up€an€irrevocable€trust,€with€Grace€Thru€Faith€as€trustee,€forÏthe€benefit€of€Caldwell€and€his€wife,€Joann.€€The€Irwins€and€the€Caldwells€all€moved€to€œWeakleyÏCounty,›€Tennessee.€€After€the€move,€Irwin€purchased€a€home,€an€automobile,€and€variousÏfurnishings€and€appliances€for€Caldwell€with€trust€funds.€€These€items€became€trust€assets.Ìà àThe€Irwins€later€alleged€that€Caldwell€sold€some€of€the€furnishings€purchased€with€SocialÏSecurity€proceeds€and€caused€or€permitted€damage€to€the€residence.€€Irwin€no€longer€wanted€to€beÏassociated€with€Caldwell.€€He€informed€the€SSA€of€his€desire€to€be€removed€as€representativeÏpayee€for€Caldwell.€€He€made€a€final€accounting€to€the€SSA,€which€the€SSA€approved.€€GraceÏThru€Faith,€as€trustee,€filed€suit€against€Caldwell,€alleging€waste€of€trust€assets.€€Caldwell€filed€aÏcounterclaim,€alleging€the€misappropriation€of€trust€funds.€€Caldwell€and€his€wife€intervened€as€theÍCaldwell€Trust€and€sought€to€make€the€Irwins€party€defendants.€€The€Irwins€intervened€as€partyÏplaintiffs€and€claimed€that€Caldwell€owed€the€Irwins€personally€$1,956.80.Ìà àAfter€a€bench€trial,€the€trial€court€found€in€favor€of€Caldwell€on€all€issues.€€The€court€foundÏÑ7€õsXXdìXXdì7Ñthat€the€Irwins€had€failed€to€properly€document€their€use€of€trust€funds€and€that€consequently€theyÏcould€not€account€for€certain€funds.€€The€court€found€that€the€Irwins€and€Grace€Thru€Faith€hadÏmisused€trust€funds,€awarded€Caldwell€a€judgment€against€Grace€Thru€Faith€and€the€Irwins€in€theÏamount€of€$5,656.50,€and€removed€Grace€Thru€Faith€as€trustee.Ìà àGrace€Thru€Faith€and€the€Irwins€then€filed€a€Motion€to€Alter,€Amend€or€Vacate€JudgmentÏfor€Lack€of€Subject€Matter€Jurisdiction.€€The€Irwins€maintained€that€they€had€made€an€accountingÏto€the€SSA€and€that€the€SSA€had€approved€of€their€accounting€methods€as€well€as€their€use€ofÏfunds.€€They€argued€that€federal€law€preempted€state€jurisdiction€in€this€case€and€that€CaldwellððsÏonly€remedy€was€an€administrative€hearing€and€subsequent€review€in€federal€court.€€The€trial€courtÏdenied€the€motion,€and€the€Irwins€filed€this€appeal.Ìà àThe€only€issue€on€appeal€is€that€of€subject€matter€jurisdiction.€€The€Irwins€maintain€that€theÏtrial€court€had€no€jurisdiction€over€the€accounting€method€prescribed€by€and€approved€by€the€SSA,Ïno€jurisdiction€to€determine€whether€the€Irwins€misused€Social€Security€benefits,€and€noÏjurisdiction€to€change€accounting€methods€after€Irwinððs€accounting€had€been€accepted€andÏapproved€by€the€SSA.€€à àThe€issue€of€whether€the€trial€court€had€subject€matter€jurisdiction€inÏthis€case€is€a€question€of€law.€€Therefore,€our€review€of€the€judgment€below€is€òòò òde€novoó óóó€upon€theÏrecord€without€a€presumption€of€correctness.€€Tenn.€R.€App.€P.€13(d);€òòò òsee€also€MarriottÏEmployeesðð€œFed.›€Credit€Union€v.€Harrisó óóó,€897€S.W.2d€723,€727€(Tenn.€App.€1994).Ìà àTo€decide€whether€federal€law€has€preempted€Tennessee€law€or€the€subject€matterÏjurisdiction€of€€Tennessee€courts,€we€start€ð ðwith€the€presumption€that€state€courts€enjoy€concurrentÏjurisdictionðð€with€federal€courts.€€òòò òWatson€v.€Cleveland€Chair€Co.ó óóó,€789€S.W.2d€538,€542Ï(Tenn.€1989).€€The€U.S.€Supreme€Court€has€explained:ÌÓÓà8 àà àWe€start€with€the€premise€that€nothing€in€the€concept€of€our€federal€systemÍprevents€state€courts€from€enforcing€rights€created€by€federal€law.€€ConcurrentÏjurisdiction€has€been€a€common€phenomenon€in€our€judicial€history,€and€exclusiveÏfederal€court€jurisdiction€over€cases€arising€under€federal€law€has€been€the€exceptionÏrather€than€the€rule.ÌÌÓÓòòò òCharles€Dowd€Box€Co.€v.€Courtneyó óóó,€368€U.S.€502,€507„08,€82€S.€Ct.€519,€œ522„23,€7€L.ÏEd.€2d€483€(1962).›€€The€Court€has€described€three€circumstances€in€which€the€Supremacy€ClauseÏof€the€United€States€Constitution,€U.S.€Const.€art.€VI,€cl.€2,€preempts€state€law:ÌÓÓà8 àœFirst,›€Congress€can€define€explicitly€the€extent€to€which€its€enactments€pre„emptÏstate€law.€€Pre„emption€fundamentally€is€a€question€of€congressional€intent,€andÏwhen€Congress€has€made€its€intent€known€through€explicit€statutory€language,€theÏcourtsðð€task€is€an€easy€one.Ìà8 àà àSecond,€in€the€absence€of€explicit€statutory€language,€state€law€is€pre„empted€where€it€regulates€conduct€in€a€field€that€Congress€intended€the€FederalÏGovernment€to€occupy€exclusively.€€Such€an€intent€may€be€inferred€from€a€ð ðschemeÏof€federal€regulation€.€.€.€so€pervasive€as€to€make€reasonable€the€inference€thatÏCongress€left€no€room€for€the€States€to€supplement€œit,ðð€or€where€an€Act€ofÏCongress€ð ðtouch[es]€a€field€in€which€the€federal€interest€is€so€dominant€that€theÏfederal€system€will€be€assumed€to€preclude€enforcement€of€state€laws€on€the€sameÏsubject.ðð€.€.€.›Ìà8 àà àFinally,€state€law€is€pre„empted€to€the€extent€that€it€actually€conflicts€withÏfederal€law.ÌÌÓÓòòò òEnglish€v.€General€œElec.€Co.ó óóó,›€496€U.S.€72,€œ78„79,›€110€S.€Ct.€2270,€œ2275,€110€L.€Ed.€2dÏ65›€(1990)€(citations€œomitted)€(quoting€òòò òRice€v.€Santa€Fe€Elevator€Corp.ó óóó,€331€U.S.€218,€230,Ï67€S.€Ct.€1146,€1152,€91€L.€Ed.€1447€(1947)).€€Field€preemption€arising€from€a€pervasive€schemeÏof€federal€regulation€will€not€be€found€in€a€field€that€includes€areas€traditionally€occupied€by€stateÏlaw,€unless€there€is€clear€and€manifest€congressional€intent€to€preempt.€€òòò òId.ó óóóÌà àThis›€is€a€case€of€first€impression€in€Tennessee.€€This€Court€has€previously€noted€thatÏð ð[w]here€neither€a€direct€conflict€nor€an€expressed€intent€to€preempt€are€present,€the€courts€mustÏjudge€from€an€examination€of€the€respective€laws€or€regulations€whether€preemption€has€in€factÏoccurred.ðð€€òòò òIllinois€Cent.€Gulf€R.R.€Co.€v.€Tennessee€Pub.€Serv.€Commððnó óóó,€736ÏS.W.2d€112,€114€(Tenn.€App.€1987).€€Consequently,€we€must€examine€the€relevant€federalÏstatutes€and€regulations€concerning€representative€payees.Ìà àUnder€the€Act,€SSI€benefits€can€be€certified€for€payment€to€someone€besides€theÏbeneficiary.€€42€U.S.C.€ðð€405(j)(1)(A)€(1994).€€The€person€or€organization€receiving€the€SSIÍpayments€is€called€the€representative€payee.€€òòò òId.ó óóó€€If€the€beneficiary€is€dissatisfied€with€the€decisionÏto€make€payments€to€a€representative€payee€or€with€the€person€chosen€as€representative€payee,€he€isÏentitled€to€an€administrative€hearing,€and€to€judicial€review€thereof€in€federal€court.€€€òòò òId.ó óóó€ððÏœ405(j)(2)(E)(i)›€(1994).€€In€addition,€the€Act€requires€annual€accountings€by€a€representative€payeeÏin€order€to€help€the€SSA€identify€representative€payee€misuse€of€funds.€€òòò òId.ó óóó€ðð€œ405(j)(3)(A).›€€TheÏSSA€can€also€require€an€accounting€from€a€representative€payee€at€any€time€if€it€has€reason€toÏbelieve€that€the€payee€is€misusing€payments.€€òòò òId.ó óóó€ðð€œ405(j)(3)(D).›Ìà àIf€the€SSA€finds€misuse,€action€may€be€taken:ÌÓÓà8 àIf€the€Commissioner€of€Social€Security€òòò òor€a€court€of€competent€jurisdictionó óóóÏdetermines€that€a€representative€payee€has€misused€any€individualððs€benefit€paid€toÏsuch€representative€payee€pursuant€to€this€subsection€or€section€1383(a)(2)€of€thisÏtitle,€the€Commissioner€of€Social€Security€shall€promptly€revoke€certification€forÏpayment€of€benefits€to€such€representative€payee€pursuant€to€this€subsection€andÏcertify€payment€to€an€alternative€representative€payee€or,€if€the€interest€of€theÏindividual€under€this€subchapter€would€be€served€thereby,€to€the€individual.ÌÌÓÓòòò òId.ó óóó€ðð€405(j)(1)(A)€€(emphasis€added).€€Further€action€is€authorized€when€the€misuse€results€fromÏSSA€negligence:ÌÓÓà8 àà àIn€cases€where€the€negligent€failure€of€the€Commissioner€of€Social€SecurityÏto€investigate€or€monitor€a€representative€payee€results€in€misuse€of€benefits€by€theÏrepresentative€payee,€the€Commissioner€of€Social€Security€shall€certify€for€paymentÏto€the€beneficiary€or€the€beneficiaryððs€alternative€representative€payee€an€amountÏequal€to€such€misused€benefits.€€The€Commissioner€of€Social€Security€shall€make€aÏgood€faith€effort€to€obtain€restitution€from€the€terminated€representative€payee.ÌÌÓÓòòò òId.ó óóó€ðð€405(j)(5).€€In€the€absence€of€such€negligence,€any€payment€made€under€ðð€405(j),€ð ðifÏotherwise€valid€under€this€subchapter,€shall€be€a€complete€settlement€and€satisfaction€of€any€claim,Ïright,€or€interest€in€and€to€such€payment.ðð€€òòò òId.ó óóó€ðð€405(k).€€The€Act€also€provides€a€criminal€penaltyÏfor€payee€misuse€of€funds,€making€it€a€felony€to€knowingly€and€willfully€use€such€funds€for€anyÏpurpose€other€than€on€behalf€of€the€beneficiary.€€ò òòòId.óóó ó€ðð€408(a)(5).€€In€addition,€ð ðthe€court€may€alsoÏrequire€that€full€or€partial€restitution€of€such€funds€be€made€to€the€individual€for€whom€such€personÏor€entity€was€the€certified€payee.ðð€€òòò òId.€ó óóóðð€408(b).Ìà àSSA€regulations€reinforce€the€statutory€guidelines.€€They€provide€that€a€representativeÍpayee€should€keep€records€of€his€use€of€benefit€payments€and€is€accountable€for€that€use.€€20ÏC.F.R.€ðð€404.2065€(1996).€€If€the€payee€does€not€use€benefit€payments€on€behalf€of€theÏbeneficiary€or€does€not€provide€a€requested€accounting,€the€SSA€will€select€a€new€representativeÏpayee.€€òòò òId.ó óóó€ðð€404.2050.€€In€addition,€the€regulations€provide:ÌÓÓà8 àà àOur€obligation€to€the€beneficiary€is€completely€discharged€when€we€make€aÏcorrect€payment€to€a€representative€payee€on€behalf€of€the€beneficiary.€€The€payee€inÏhis€or€her€personal€capacity,€and€not€SSA,€may€be€liable€if€the€payee€misuses€theÏbeneficiaryððs€benefits.ÌÌÓÓòòò òId.ó óóó€ðð€404.2041.€€€Finally,€the€regulations€describe€the€review€process€for€SSA€decisions.€€ò òòòId.ó óóó€ððððÏ404.900„.996.€€Administrative€review€and€subsequent€judicial€review€are€available€for€decisionsÏwhich€are€deemed€ð ðinitial€determinationsðð€by€the€SSA.€€òòò òId.ó óóó€ðð€404.900(a).€€The€regulations€provideÏa€non„exclusive€list€of€those€actions€considered€initial€determinations.€€òòò òId.ó óóó€ðð€œ404.902.›€€TheÏdecision€to€make€payments€to€a€representative€payee€and€choice€of€œpayee›€are€initial€determinations.€Ïòòò òId.ó óóó€ðð€404.902(o),€(q).€€The€regulations€also€describe€a€category€of€agency€ð ðactions€that€are€notÏinitial€determinations.ðð€€òòò òId.ó óóó€ðð€404.903.€€Actions€that€are€not€initial€determinations€may€be€reviewedÏby€the€SSA€but€are€not€subject€to€the€comprehensive€review€process€afforded€initial€determinationsÏand€are€not€subject€to€judicial€review.€€òòò òId.ó óóó€€Denying€an€individualððs€request€to€be€certified€aÏrepresentative€payee€and€deciding€whether€an€organization€acting€as€representative€payee€canÏcharge€the€beneficiary€a€fee€for€expenses€incurred€in€fulfilling€its€duties€fall€into€this€category.€€òòò òId.ó óóóÏðð€404.903(c),€(q).€€The€regulations€do€not€indicate€that€a€beneficiary€must€go€through€the€agencyÏreview€process€in€order€to€seek€restitution€from€a€representative€payee€who€has€misappropriated€theÏbeneficiaryððs€payments.€€Likewise,€the€regulations€do€not€indicate€that€the€SSAððs€acceptance€of€aÏfinal€accounting€from€a€decertified€payee€forecloses€the€beneficiaryððs€state€remedies€against€theÏpayee.Ìà àTherefore,€in€situations€in€which€the€misuse€of€funds€is€not€a€result€of€SSA€negligence,Ïthere€is€òòò ònoó óóó€provision€in€the€federal€statutes€or€regulations€for€a€beneficiary€to€recover€misusedÏfunds€from€a€representative€payee.€€While€the€SSA€requires€an€accounting€of€a€payeeððs€use€ofÍbenefit€payments,€the€primary€remedy€for€misuse€of€payments€is€replacement€of€the€payee.€€42ÏU.S.C.€ðð€405(j)(1)(A)€(1994);€20€C.F.R.€ðð€404.2050€(1996).€€Reimbursement€is€only€providedÏfor€when€the€SSA€has€been€negligent€in€its€oversight€of€the€representative€payee,€€not€alleged€here,Ïand€when€the€payee€has€been€convicted€in€criminal€court€for€œwillful›€misuse€of€beneficiaryÏpayments,€which€has€not€occurred€in€this€case.€€42€U.S.C.€ðð€405(j)(5)€(1994);€òòò òid.ó óóó€ðð€408(b)Ï(1994).€€The€regulations€state€that€the€payee€may€be€personally€liable€for€misuse€of€funds,Ïimplicitly€allowing€for€a€claim€by€the€beneficiary€against€the€payee.€€20€C.F.R.€ðð€404.2041€(1996).€ÏThe€Act€further€provides€for€the€revocation€of€a€representative€payeeððs€certification€when€ð ðtheÏCommissioner€of€Social€Security€òòò òor€a€court€of€competent€jurisdictionó óóó€determines€that€aÏrepresentative€payee€has€misused€any€individualððs€benefit€paidðð€to€him.€€42€U.S.C.€ðð€405(j)(1)(A)Ï(1994)€(emphasis€added).€€The€language€ð ða€court€of€competent€jurisdictionðð€clearly€indicates€that€aÏclaim€of€payee€misuse€of€funds€can€be€addressed€outside€the€SSAððs€administrative€procedures.€ÏFurthermore,€the€regulations€do€not€list€the€SSAððs€acceptance€of€a€representative€payeeððsÏaccounting€as€an€ð ðinitial€determinationðð€subject€to€agency€review€or€as€an€ð ðaction€that€is€not€anÏinitial€determinationðð€that€may€still€be€subject€to€limited€agency€review.€€20€C.F.R.€ðððð€404.902„.903€(1996).€Therefore,€the€federal€statutes€and€regulations€allow€for€claims€beyond€thoseÏexpressly€provided€for€therein€and€contain€no€language€indicating€an€intent€to€preempt€state€courtÏjurisdiction.€€Moreover,€a€state€claim€by€a€beneficiary€for€recovery€of€funds€misused€by€a€payeeÏdoes€not€conflict€with€the€federal€statutes€and€regulations.€€ò òòòSee€English€v.€General€Elec.ÏCo.ó óóó,€496€U.S.€72,€78„79,€110€œS.€Ct.›€2270,€œ2275,€110€L.€Ed.€2d€65›€(1990).€Ìà àCases€from€other€jurisdictions€support€this€conclusion.€€In€ò òòòJordan€v.€Heckleró óóó,€744€F.2dÏ1397,€1399€(10th€Cir.€1984),€the€court€found€that€a€determination€regarding€a€payee's€misuse€ofÏfunds€was€not€an€initial€determination€under€the€Act€and€did€not€trigger€an€administrative€hearingÏand€judicial€review.€€ò òòòJordanóóó ó€noted€that€neither€the€Act€nor€regulations€provide€for€a€hearing€on€aÏrepresentative€payeeððs€misuse€of€funds:€"A€claim€may€be€the€basis€for€a€change€in€theÏrepresentative,€but€this€does€not€have€any€consequences€as€to€the€dollars."€€ò òòòId.óóó ó€€The€courtÍobserved:ÌÓÓà8 àà àThe€only€action€that€the€agency€can€take€if€there€appears€to€be€aÏmisapplication€of€funds€by€the€payee€is€to€ð ðrequestðð€restitution€and€refer€the€incidentÏto€the€General€Accounting€Office.€€Claims€of€this€nature€in€this€appeal€have€noÏrelation€whatever€to€a€termination€of€benefits€or€to€the€dollars€from€the€agency.€Ïòòò òThe€claims€could€however€go€against€the€representative€as€anÏindividual€with€state€law€remedies€available.ó óóóÌÌÓÓò òòòId.óóó ó€(emphasis€added).€€Therefore,€under€the€reasoning€in€òòò òJordanó óóó,€Caldwellððs€claim€against€theÏIrwins€was€properly€pursued€in€state€court.Ìà àAn€unreported€federal€decision€discusses€the€issue€of€jurisdiction.€€In€ò òòòBlanchard€v.ÏSocial€Security€Administrationóóó ó,€No.€CV„91„1576,€1993€WL€72353€(E.D.N.Y.€Mar.€1,Ï1993),€€the€district€court€considered€whether€it€could€hear€a€suit€against€the€SSA€on€the€misuse€ofÏSSA€funds€paid€to€a€representative€payee€who€was€the€state„appointed€conservator€for€aÏbeneficiary.€€The€court€interpreted€the€language€in€42€U.S.C.€ðð€405(j)(1)(A)€concerning€"a€court€ofÏcompetent€jurisdiction"€and€the€determination€of€misuse€of€funds€by€a€representative€payee:ÌÓÓà8 à[T]hat€section€implicitly€mandates€that€plaintiff€exhaust€her€administrative€remediesÏbefore€seeking€such€a€determination€in€federal€court€for€only€then€would€the€courtÏhave€"competent€jurisdiction"€to€determine€the€issue€of€misuse€of€funds.€€InÏaddition,€ò òòòthe€statute€also€contemplates€removal€of€a€representativeÏpayee€once€a€state€court€of€competent€jurisdiction€determines€that€theÏindividual€has€converted€funds€received€on€behalf€of€the€beneficiaryóóó ó.€ÏShould€plaintiff€wish€to€pursue€her€restitution€claim,€she€must€first€file€a€claim€ofÏmisuse€of€funds€with€the€Social€Security€Administration€and€exhaust€theÏadministrative€appeals€process€before€this€Court€can€address€that€issue€or,Ïò òòòalternatively,€she€may€petition€the€Supreme€Court€of€Queens€CountyÏto€remove€Brand€as€conservator€of€Jenkins'€estate€by€substantiatingÏher€allegations€of€misuse€of€funds€in€that€courtóóó ó.ÌÌÓÓò òòòId.€ó óóóat€*2€(emphasis€added)€(footnote€omitted).€€This€interpretation€of€the€Act€supports€findingÏconcurrent€jurisdiction€between€the€state€and€federal€courts.€€òòò òSee€alsoó óóó€ò òòòIn€re€Guardianship€&ÏConservatorship€of€Cavinóóó ó,€333€N.W.2d€840,€841€(Iowa€1983)€(noting€a€conservatorððsÏconcurrent€federal€and€state€duties€to€account€for€Social€Security€benefits).€€Ìà àState€jurisdiction€over€claims€of€payee€misuse€of€funds€was€also€found€in€ò òòòIn€re€Kummeró óóó,Ï461€N.Y.S.2d€845€(N.Y.€App.€Div.€1983).€€òòò òKummeró óóó€relied€on€an€unpublished€federal€decision,Ïòòò òBell€v.€Secretary€of€HEWó óóó,€No.€70€C€407€(E.D.N.Y.€Feb.€2,€1971).€€òòò òKummeró óóó,€461ÍN.Y.S.2d€at€858„61.€€In€òòò òBelló óóó,€the€court€observed€that€ð ð€ððneither€the€Act€nor€the€regulationsÏprovide€for€any€means€by€which€the€Administration€can€recover€funds€misappropriated€by€aÏrepresentative€payee€and€reissue€them€to€the€beneficiary.ðð€ðð€€òòò òKummeró óóó,€461€N.Y.S.2d€at€859Ï(quoting€òòò òBelló óóó).€€òòò òBelló óóó€€noted€that,€even€if€the€SSA€had€found€that€the€defendant€hadÏmisappropriated€the€plaintiffððs€funds,€it€would€have€had€no€power€to€compensate€the€plaintiff.€€òòò òId.ó óóó€ÏThe€court€concluded€that,€ð ð€ðð[s]ince€no€decision€made€by€the€Secretary€could€have€affected€any€ofÏplaintiffððs€rights€to€payment€of€benefits,€no€hearing€was€requiredðð€ðð€by€the€Act.€€òòò òId.ó óóó€(quotingÏòòò òBelló óóó).€€€Consequently,€an€SSA€ð ðSpecial€Determinationðð€finding€no€payee€misuse€of€funds€was€notÏa€proper€adjudication€of€the€rights€between€the€two€parties,€and€the€federal€court€set€thatÏdetermination€aside.€€òòò òId.ó óóó€at€860.€€In€òòò òBelló óóó,€the€court€pointed€out€that€the€plaintiff€beneficiary€couldÏsue€the€defendant€representative€payee€in€state€court.€€òòò òId.ó óóó€€Relying€on€òòò òBelló óóó,€òòò òKummeró óóó€concludedÏthat€New€York€courts€had€jurisdiction€over€claims€of€payee€misuse€of€benefit€payments.€€òòò òId.ó óóó€atÏ860„61.Ìà àIn€ò òòòCatlett€v.€Catlettóóó ó,€561€N.E.2d€948€(Ohio€App.€1988),€the€Ohio€court€consideredÏwhether€a€representative€payee€could€be€ordered€to€put€a€lump„sum€Social€Security€payment€into€aÏtrust€set€up€for€the€beneficiary,€her€minor€daughter.€€The€court€found€that€questions€regardingÏmisuse€of€Social€Security€funds€by€a€representative€payee€are€not€exclusively€under€federalÏjurisdiction.€€Under€the€Act,€the€SSA's€primary€response€to€the€discovery€of€payee€misuse€ofÏfunds€is€to€choose€a€new€representative€payee.€€ò òòòId.óóó ó€at€951.€€The€SSA€only€requires€accountingsÏfrom€a€payee€in€order€to€know€whether€to€retain€him€or€choose€a€new€one,€not€to€settle€disputesÏbetween€payees€and€beneficiaries.€€ò òòòId.óóó ó€at€951„53.€€ò òòòCatlettó óóó€also€noted€that€the€Act€providesÏadministrative€action€for€the€two€types€of€SSA€œdecisions›€discussed€above,€€ð ðinitial€determinationsððÏand€ð ðactions€that€are€not€initial€determinations.ðð€€òòò òId.ó óóó€at€951.€€The€court€concluded:ÌÓÓà8 àà àWe€find€that€the€case€at€bar€involves€an€issue,€òòi.e.óó,€the€representativeÏpayeeððs€expenditure€of€benefits,€which€is€neither€an€initial€determination€nor€aÏdetermination€which€is€not€an€initial€determination€as€defined€by€the€federalÏregulations.€€Jurisdiction€over€this€particular€issue€has€not€been€exclusively€grantedÏto€the€federal€courts€by€express€provision.€€In€addition,€the€nature€of€this€particularÍquestion€is€such€that€the€SSA€no€longer€has€any€interest€in€the€funds€after€they€haveÏbeen€properly€paid€to€the€appropriate€representative€payee.ÌÌÓÓòòò òId.ó óóó€at€953.€€Thus,€the€court€decided€that€the€state€had€jurisdiction€over€actions€alleging€payeeÏmisappropriation€of€SSA€funds.€€òòò òId.ó óóóÌà àConsequently,€a€number€of€cases€appear€to€support€a€finding€of€no€preemption.€€However,Ïthere€are€cases€to€the€contrary.€€ò òòòBrevard€v.€Brevardóóó ó,€328€S.E.2d€789€(N.C.€App.€1985),€foundÏthat€state€courts€have€no€jurisdiction€over€a€representative€payee's€misuse€of€funds.€€It€noted€that,Ï"[i]n€general,€Social€Security€benefits€are€neither€assignable€nor€subject€to€legal€process."€€ò òòòId.óóó ó€atÏ791.€€The€court€went€on€to€state€that,€"[i]n€enacting€Title€42,€Chapter€7,€Congress€provided€that€theÏuse€or€misuse€of€federal€Social€Security€benefits€would€be€a€federal€matter,€entrusted€primarily€toÏthe€SSA."€€ò òòòId.óóó ó€at€792.€€The€court€concluded:ÌÓÓà8 àThe€courts€of€North€Carolina,€however,€do€not€possess€the€power€to€compel€theÏSSA€to€transfer€the€children's€benefits€to€someone€other€than€the€designated€payee,Ïò òòònor€do€they€have€the€power€to€determine€that€defendant€is€misusingÏSocial€Security€benefits€paid€to€him€on€behalf€of€the€children€and€toÏdirect€that€he€account€for€them€to€some€other€personóóó ó.ÌÌÓÓòòò òId.óóó ó€(emphasis€added).€€The€òòò òBrevardó óóó€court€speculated€that€the€plaintiff€might€have€anÏadministrative€remedy€through€the€SSA€or€that€the€SSA€might€invoke€18€U.S.C.€ðð€641,€a€criminalÏstatute€directed€against€stealing€public€money,€property,€or€records.€€òòò òIdó óóó;€ò òòòsee€also€C.G.A.€v.ÏStateóóó ó,€824€P.2d€1364,€1367€(Alaska€1992)€(finding€that€the€existence€of€a€federal€remedyÏpreempts€state€jurisdiction).Ìà àHowever,€as€discussed€above,€the€SSA€does€òòò ònotó óóó€provide€a€means€by€which€a€beneficiaryÏmay€recover€misappropriated€funds€from€a€representative€payee,€in€the€absence€of€negligence€byÏthe€SSA.€€Consequently,€a€finding€of€preemption€would€result€in€no€available€remedy€for€aÏbeneficiary€who€has€been€the€victim€of€misuse€of€funds€by€a€representative€payee.€€Ìà àThe€Social€Security€Act€and€the€regulations€promulgated€pursuant€to€it€neither€explicitly€norÏimplicitly€preempt€state€jurisdiction€over€this€issue.€€Tennessee€courts€have€"undoubtedÏjurisdiction"€over€disputes€between€the€legatee€and€the€trustee€of€an€express€trust,€such€as€GraceÍThru€Faith.€€ò òòòArmstrong's€Heirs€v.€Campbellóóó ó,€11€Tenn.€(3€Yer.)€201,€234€(1832).€ÏAccordingly,€if€a€representative€payee€misuses€or€misappropriates€SSI€benefits€paid€to€him€onÏbehalf€and€for€the€use€of€the€beneficiary,€Tennessee€courts€have€jurisdiction€to€examine€the€payeeððsÏaccounting,€determine€if€any€abuse€has€occurred,€and€order€the€appropriate€remedy.× ƒ' ××  ×€€Therefore,Ïthe€trial€court€had€subject€matter€€jurisdiction€in€this€case.€Ìà àThe€decision€of€the€trial€court€is€affirmed.€€Costs€are€assessed€against€Appellants,€for€whichÏexecution€may€issue€if€necessary.ÌÓÓà àà àà àà àà àà àòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€Ìà àà àà àà àà àà àò òóóHOLLY€KIRBY€LILLARD,€J.ÌÌCONCUR:ÌÌòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€ÌóóALAN€E.€HIGHERS,€J.€ÌÌÌòò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€óóÌDAVID€R.€FARMER,€J.ó ó