To improve the quality of life for senior citizens.

Summary: Senior Citizen's Improved Quality of Life Act - Amends title II (Old Age, Survivors and Disability Insurance) (OASDI) of the Social Security Act (SSA) to require the Managing Trustee of the Board of Trustees of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund (Social Security trust funds) to ensure that the annual surplus of the Social Security Trust Funds is invested in: (1) marketable interest-bearing obligations of the United States or obligations guaranteed by the United States; or (2) certificates of deposit in insured depository institutions. Prescribes a formula for determining the annual surplus of the Trust Funds.

Prohibits any delay in making normal deposits in such Trust Funds, any refraining from making such investments to avoid increasing the public debt, or any disinvestment of Trust Fund amounts invested in public debt obligations to reduce the public debt. Requires the sale of Trust Fund public debt obligations, despite the public debt limit, for the payment of cash benefits and administrative expenses in certain circumstances. 
 
 Prohibits the crediting for OASDI coverage of any wages earned, and self-employment income derived, by individuals during any time they were not U.S. citizens or nationals. 
 
 Revises the President's authority to enter into agreements establishing totalization arrangements between the U.S. Social Security System and the social security system of any foreign country. Extends such authority to arrangements to resolve entitlement and participation questions about the respective systems, taking into account the limitation placed by this Act on the crediting of wages and self-employment. 
 
 Amends SSA title XVIII (Medicare) to repeal the physician or practitioner affidavit requirements for private, non-reimbursement contracts with Medicare beneficiaries. 
 
 Declares that no persons otherwise eligible for old-age benefits under Social Security shall be denied such benefits because of their voluntary refusal to participate in any part of the Medicare program. 
 
 Amends the Internal Revenue Code to: (1) repeal the inclusion in gross income of Social Security benefits; and (2) allow a nonrefundable tax credit for 80% of the amount paid for a prescribed drug (not compensated for by insurance or otherwise) by a taxpayer who has attained Social Security retirement age. 
 
 Amends the Federal Food, Drug, and Cosmetic Act (FFDCA) to repeal certain requirements relating to the importation of prescription drugs. Allows a person who meets applicable legal requirements to be an importer, with an approved import application, to import a prescription drug. Requires the Secretary to approve such an application if the drug meets all FFDCA requirements for admission into the United States, including approval by the Food and Drug Administration (FDA), and absence of adulteration or misbranding. 
 
 Prohibits the Secretary from taking any action against any of the persons involved with the interstate sale of a prescription drug through an Internet site if: (1) the sale was made in compliance with applicable federal and state laws; and (2) accurate information regarding compliance with such laws is posted on the website.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Senior Citizen's Improved Quality of 
Life Act''.

SEC. 2. PRESERVATION OF SOCIAL SECURITY.

    (a) Investment of the Federal Old-Age and Survivors Insurance Trust 
Fund and the Federal Disability Insurance Trust Fund.--
            (1) In general.--Section 201(d) of the Social Security Act 
        (42 U.S.C. 401(d)) is amended--
                    (A) by inserting ``(1)'' after ``(d)'';
                    (B) by striking ``Such investments may be made 
                only'' and inserting the following: ``Except as 
                provided in paragraph (2), such investments may be made 
                only'';
                    (C) by striking the last sentence; and
                    (D) by adding at the end the following new 
                paragraph:
    ``(2)(A) The Managing Trustee shall determine the annual surplus 
(as defined in subparagraph (B)) for each of the Trust Funds as of the 
end of each fiscal year. The Managing Trustee shall ensure that such 
annual surplus is invested, throughout the next following fiscal year, 
in--
            ``(i) marketable interest-bearing obligations of the United 
        States or obligations guaranteed as to both principal and 
        interest by the United States, purchased on original issue or 
        at the market price, or
            ``(ii) certificates of deposit in insured depository 
        institutions (as defined in section 3(c)(2) of the Federal 
        Deposit Insurance Act).
    ``(B) For purposes of this paragraph, the `annual surplus' for 
either of the Trust Funds as of the end of a fiscal year is the excess 
(if any) of--
            ``(i) the sum of--
                    ``(I) in the case of the Federal Old-Age and 
                Survivors Insurance Trust Fund, the amounts 
                appropriated to such Trust Fund under paragraphs (3) 
                and (4) of subsection (a) for the fiscal year,
                    ``(II) in the case of the Federal Disability 
                Insurance Trust Fund, the amounts appropriated to such 
                Trust Fund under paragraphs (1) and (2) of subsection 
                (b) for the fiscal year, and
                    ``(III) in either case, the amount appropriated to 
                such Trust Fund under section 121(e) of the Social 
                Security Amendments of 1983 for the fiscal year, and 
                any amounts otherwise credited to or deposited in such 
                Trust Fund under this title for the fiscal year, over
            ``(ii) the amounts paid or transferred from such Trust Fund 
        during the fiscal year.''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply with respect to annual surpluses as of the end of 
        fiscal years beginning on or after October 1, 2005.
    (b) Protection of the Social Security Trust Funds From the Public 
Debt Limit.--
            (1) Protection of trust funds.--Notwithstanding any other 
        provision of law--
                    (A) no officer or employee of the United States 
                may--
                            (i) delay the deposit of any amount into 
                        (or delay the credit of any amount to) the 
                        Federal Old-Age and Survivors Insurance Trust 
                        Fund or the Federal Disability Insurance Trust 
                        Fund or otherwise vary from the normal terms, 
                        procedures, or timing for making such deposits 
                        or credits, or
                            (ii) refrain from the investment in public 
                        debt obligations of amounts in either of such 
                        Trust Funds, if a purpose of such action or 
                        inaction is to not increase the amount of 
                        outstanding public debt obligations, and
                    (B) no officer or employee of the United States may 
                disinvest amounts in either of such Trust Funds which 
                are invested in public debt obligations if a purpose of 
                the disinvestment is to reduce the amount of 
                outstanding public debt obligations.
            (2) Protection of benefits and expenditures for 
        administrative expenses.--
                    (A) In general.--Notwithstanding paragraph (1), 
                during any period for which cash benefits or 
                administrative expenses would not otherwise be payable 
                from the Federal Old-Age and Survivors Insurance Trust 
                Fund or the Federal Disability Insurance Trust Fund by 
                reason of an inability to issue further public debt 
                obligations because of the applicable public debt 
                limit, public debt obligations held by such Trust Fund 
                shall be sold or redeemed only for the purpose of 
                making payment of such benefits or administrative 
                expenses and only to the extent cash assets of such 
                Trust Fund are not available from month to month for 
                making payment of such benefits or administrative 
                expenses.
                    (B) Issuance of corresponding debt.--For purposes 
                of undertaking the sale or redemption of public debt 
                obligations held by the Federal Old-Age and Survivors 
                Insurance Trust Fund or the Federal Disability 
                Insurance Trust Fund pursuant to subparagraph (A), the 
                Secretary of the Treasury may issue corresponding 
                public debt obligations to the public, in order to 
                obtain the cash necessary for payment of benefits or 
                administrative expenses from such Trust Fund, 
                notwithstanding the public debt limit.
                    (C) Advance notice of sale or redemption.--Not less 
                than 3 days prior to the date on which, by reason of 
                the public debt limit, the Secretary of the Treasury 
                expects to undertake a sale or redemption authorized 
                under subparagraph (A), the Secretary of the Treasury 
                shall report to each House of the Congress and to the 
                Comptroller General of the United States regarding the 
                expected sale or redemption. Upon receipt of such 
                report, the Comptroller General shall review the extent 
                of compliance with paragraph (1) and subparagraphs (A) 
                and (B) of this paragraph and shall issue such findings 
                and recommendations to each House of the Congress as 
                the Comptroller General considers necessary and 
                appropriate.
            (3) Public debt obligation.--For purposes of this 
        subsection, the term ``public debt obligation'' means any 
        obligation subject to the public debt limit established under 
        section 3101 of title 31, United States Code.

SEC. 3. SOCIAL SECURITY FOR AMERICANS ONLY.

    (a) Limitations on Coverage of Individuals Based on Earnings of 
Individuals Who Are not Citizens or Nationals of the United States.--
Section 215(e) of the Social Security Act (42 U.S.C. 415(e)) is 
amended--
            (1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively;
            (2) by inserting ``(1)'' after ``(e)''; and
            (3) by adding at the end the following new paragraph:
    ``(2) For purposes of subsections (b) and (d), in computing an 
individual's average indexed monthly earnings, or in the case of an 
individual whose primary insurance amount is computed under section 
215(a) as in effect prior to January 1979, average monthly wage, such 
individual shall not be credited with--
            ``(A) any wages paid to such individual after December 31, 
        2006, while such individual is not a citizen or national of the 
        United States, or
            ``(B) any self-employment income derived by such individual 
        during any taxable year beginning after December 31, 2006, 
        while such individual is not a citizen or national of the 
        United States.''.
    (b) Revision of Authorization for Totalization Agreements.--
            (1) In general.--Section 233 of the Social Security Act (42 
        U.S.C. 433) is amended to read as follows:

                       ``international agreements

    ``Sec. 233. The President is authorized to enter into agreements 
(subject to the other provisions of this title and of chapters 2 and 21 
of the Internal Revenue Code of 1986) establishing arrangements between 
the United States and any foreign country for the purpose of resolving 
questions of entitlement to, and participation in, the social security 
system established by this title and the social security system of such 
foreign country. Any such agreement shall take into account the 
limitations on the crediting of wages and self-employment income under 
section 215(e)(2).''.
            (2) Effective date; termination of existing agreements.--
        The amendment made by paragraph (1) shall apply with respect to 
        agreements taking effect after the date of the enactment of 
        this Act. Any agreement in effect on such date which was 
        entered into under section 233 of the Social Security Act (as 
        in effect immediately before such date of enactment) shall 
        terminate on December 31, 2006 (or as provided in such 
        agreement, if earlier).

SEC. 4. SENIORS' HEALTH CARE FREEDOM.

    (a) Facilitating the Use of Private Contracts Under the Medicare 
Program.--Section 1802(b) of the Social Security Act (42 U.S.C. 
1395a(b)) is amended by striking paragraph (3) and by redesignating 
paragraphs (4) and (5) as paragraphs (3) and (4), respectively.
    (b) No Eligibility Condition Based on Refusal to Participate in a 
Government Program.--No persons otherwise eligible for old-age benefits 
under Social Security shall be denied such benefits because of their 
voluntary refusal to participate in any part of the Medicare program.

SEC. 5. REPEAL OF INCLUSION IN GROSS INCOME OF SOCIAL SECURITY 
              BENEFITS.

    (a) In General.--Section 86 of the Internal Revenue Code of 1986 
(relating to social security benefits) is amended by adding at the end 
the following new subsection:
    ``(g) Termination.--This section shall not apply to any taxable 
year beginning after the date of the enactment of this subsection.''.
    (b) Social Security Trust Funds Held Harmless.--
            (1) In general.--There are hereby appropriated (out of any 
        money in the Treasury not otherwise appropriated) for each 
        fiscal year to each fund under the Social Security Act or the 
        Railroad Retirement Act of 1974 an amount equal to the 
        reduction in the transfers to such fund for such fiscal year by 
        reason of section 86(g) of the Internal Revenue Code of 1986.
            (2) No tax increases.--It is the sense of the Congress that 
        tax increases will not be used to provide the revenue necessary 
        to carry out paragraph (1).

SEC. 6. INCOME TAX CREDIT FOR PRESCRIPTION DRUGS PURCHASED BY 
              INDIVIDUALS WHO HAVE ATTAINED RETIREMENT AGE.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to nonrefundable 
personal credits) is amended by inserting after section 25D the 
following new section:

``SEC. 25E. PRESCRIPTION DRUGS PURCHASED BY INDIVIDUALS WHO HAVE 
              ATTAINED SOCIAL SECURITY RETIREMENT AGE.

    ``(a) In General.--In the case of an individual who has attained 
social security retirement age, there shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to 80 percent of the amount paid by the taxpayer during the 
taxable year (and not compensated for by insurance or otherwise) for 
any prescribed drug (as defined in section 213(d)(3)) for use by such 
individual.
    ``(b) Social Security Retirement Age.--For purposes of this 
section, the term `social security retirement age' means retirement age 
(as defined in section 216(l)(1) of the Social Security Act).
    ``(c) Denial of Double Benefit.--
            ``(1) Coordination with medical expense deduction.--The 
        amount which would (but for this subsection) be taken into 
        account by the taxpayer under section 213 for the taxable year 
        shall be reduced by the credit (if any) allowed by this section 
        to the taxpayer for such year.
            ``(2) Coordination with medical and health savings 
        accounts.--No credit shall be allowed under this section for 
        amounts paid from any Archer MSA (as defined in section 220(d)) 
        or any health savings account (as defined in section 223(d)).
    ``(d) Election not to Have Credit Apply.--This section shall not 
apply to a taxpayer for a taxable year if the taxpayer elects not to 
have this section apply for such year.''.
    (b) Clerical Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 25D the following new 
item:

``Sec. 25E. Prescription drugs purchased by individuals who have 
                            attained social security retirement age''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning more than 1 year after the date of the 
enactment of this Act.

SEC. 7. FACILITATION OF IMPORTATION OF DRUGS APPROVED BY FOOD AND DRUG 
              ADMINISTRATION AND INTERNET SALES OF PRESCRIPTION DRUGS.

    (a) Facilitation of Importation of Drugs Approved by Food and Drug 
Administration.--Chapter VIII of the Federal Food, Drug, and Cosmetic 
Act (21 U.S.C. 381 et seq.) is amended--
            (1) by striking section 804; and
            (2) in section 801(d)--
                    (A) by striking paragraph (2); and
                    (B) by striking ``(d)(1)'' and all that follows 
                through the end of paragraph (1) and inserting the 
                following:
    ``(d)(1)(A) A person who meets applicable legal requirements to be 
an importer of drugs described in subparagraph (B) may import such a 
drug (without regard to whether the person is a manufacturer of the 
drug) if the person submits to the Secretary an application to import 
the drug and the Secretary approves the application.
    ``(B) For purposes of subparagraph (A), the drugs described in this 
subparagraph are drugs that are subject to section 503(b)(1) or that 
are composed wholly or partly of insulin.
    ``(C) The Secretary shall approve an application under subparagraph 
(A) if the application demonstrates that the drug to be imported meets 
all requirements under this Act for the admission of the drug into the 
United States, including demonstrating that--
            ``(i) an application for the drug has been approved under 
        section 505, or as applicable, under section 351 of the Public 
        Health Service Act; and
            ``(ii) the drug is not adulterated or misbranded.
    ``(D) Not later than 60 days after the date on which an application 
under subparagraph (A) is submitted to the Secretary, the Secretary 
shall--
            ``(i) approve the application; or
            ``(ii) refuse to approve the application and provide to the 
        person who submitted the application the reason for such 
        refusal.
    ``(E) This paragraph may not be construed as affecting any right 
secured by patent.''.
    (b) Internet Sales of Prescription Drugs.--Section 503(b) of the 
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 353(b)) is amended by 
adding at the end the following paragraph:
    ``(6)(A) With respect to the interstate sale of a prescription drug 
through an Internet site, the Secretary may not with respect to such 
sale take any action under this Act against any of the persons involved 
if--
            ``(i) the sale was made in compliance with this Act and 
        with State laws that are applicable to the sale of the drug; 
        and
            ``(ii) accurate information regarding compliance with this 
        Act and such State laws is posted on the Internet site.
    ``(B) For purposes of subparagraph (A), the sale of a prescription 
drug by a person shall be considered to be an interstate sale of the 
drug through an Internet site if--
            ``(i) the purchaser of the drug submits the purchase order 
        for the drug, or conducts any other part of the sales 
        transaction for the drug, through an Internet site; and
            ``(ii) pursuant to such sale, the person introduces the 
        drug into interstate commerce or delivers the drug for 
        introduction into such commerce.
    ``(C) Subparagraph (A) may not be construed as authorizing the 
Secretary to enforce any violation of State law.
    ``(D) For purposes of this paragraph, the term `prescription drug' 
means a drug that is subject to paragraph (1).''.
    (c) Conforming Amendments.--Section 801(d) of the Federal Food, 
Drug, and Cosmetic Act (21 U.S.C. 381(d)) is amended--
            (1) by redesignating paragraphs (3) and (4) as paragraphs 
        (2) and (3), respectively;
            (2) in subclause (III) of paragraph (2)(A)(i) (as 
        redesignated by this subsection), by striking ``paragraph (4)'' 
        and inserting ``paragraph (3)''; and
            (3) in paragraph (3) (as redesignated by this subsection), 
        by striking ``paragraph (3)'' each place such term appears and 
        inserting ``paragraph (2)''.
    (d) Regulations of Secretary of Health and Human Services; 
Effective Date.--
            (1) Regulations.--Before the expiration of the period 
        specified in paragraph (2), the Secretary of Health and Human 
        Services shall promulgate regulations to carry out the 
        amendments to the Federal Food, Drug, and Cosmetic Act that are 
        made by this section.
            (2) Effective date.--The amendments to the Federal Food, 
        Drug, and Cosmetic Act that are made by this section take 
        effect upon the expiration of the one-year period beginning on 
        the date of the enactment of this Act, without regard to 
        whether the regulations required in paragraph (1) have been 
        promulgated.