To amend the Social Security Act to provide greater equity and efficiency to the Social Security Administration's payment system for representation of claimants, and for other purposes.

Summary: Attorney Fee Payment System Improvement Act of 2001 - Amends title II (Old Age, Survivors and Disability Insurance) (OASDI) of the Social Security Act (SSA) to: (1) increase from $4,000 to $5,200 the maximum allowable attorney fee; and (2) cap the amount of attorney assessments at $100.Amends SSA title XVI (Supplemental Security Income) to prescribe a fee payment system for attorneys representing individuals filing claims for past-due benefits in the SSI program. Caps attorney fees at 25 percent of such past-due benefits. Requires the Commissioner of Social Security to assess such an attorney up to $100.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Attorney Fee Payment System 
Improvement Act of 2001''.

SEC. 2. INCREASE IN MAXIMUM ALLOWABLE ATTORNEY FEE AND CAP ON ATTORNEY 
              ASSESSMENTS.

    (a) Maximum Allowable Attorney Fee.--Section 206(a)(2)(A) of the 
Social Security Act (42 U.S.C. 406(a)(2)(A)) is amended--
            (1) in clause (ii)(II), by striking ``$4,000'' and 
        inserting ``$5,200''; and
            (2) in the matter following clause (iii), by striking 
        ``January 1, 1991'' and inserting ``January 1, 2001''.
    (b) Cap on Attorney Assessments.--Section 206(d)(2)(A) of such Act 
(42 U.S.C. 406(d)(2)(A)) is amended by inserting ``, except that the 
maximum amount of the assessment may not exceed $100'' after 
``subparagraph (B)''.

SEC. 3. EXTENSION OF ATTORNEY FEE PAYMENT SYSTEM TO TITLE XVI CLAIMS.

    Section 1631(d)(2) of the Social Security Act (42 U.S.C. 
1383(d)(2)) is amended--
            (1) in the matter in subparagraph (A) preceding clause 
        (i)--
                    (A) by striking ``section 206(a)'' and inserting 
                ``section 206'';
                    (B) by striking ``(other than paragraph (4) 
                thereof)'' and inserting ``(other than subsections 
                (a)(4) and (d) thereof); and
                    (C) by striking ``paragraph (2) thereof'' and 
                inserting ``such section'';
            (2) in subparagraph (A)(i), by striking ``in subparagraphs 
        (A)(ii)(I) and (C)(i),'' and inserting ``in subparagraphs 
        (A)(ii)(I) and (D)(i) of subsection (a)(2) and in subsection 
        (a)(4)'', and by striking ``and'' at the end; and
            (3) by striking subparagraph (A)(ii) and inserting the 
        following:
            ``(ii) by substituting, in subsections (a)(2)(B) and 
        (b)(1)(B)(i), the phrase `section 1631(a)(7)(A) or the 
        requirements of due process of law' for the phrase `subsection 
        (g) or (h) of section 223';
            ``(iii) by substituting, in subsection (a)(2)(C)(i), the 
        phrase `under title II' for the phrase `under title XVI';
            ``(iv) by substituting, in subsection (a)(4), the phrase 
        `shall pay' for the phrase `shall, notwithstanding section 
        205(i), certify for payment'; and
            ``(v) by substituting, in subsection (b)(1)(A), the phrase 
        `pay the amount of such fee' for the phrase `certify the amount 
        of such fee for payment' and by striking, in subsection 
        (b)(1)(A), the phrase `or certified for payment'; and
            ``(vi) by substituting, in subsection (b)(1)(B)(ii), the 
        phrase `deemed to be such amounts as determined before any 
        applicable reduction under section 1631(g), and reduced by the 
        amount of any reduction in benefits under this title or title 
        II made pursuant to section 1127(a)' for the phrase `determined 
        before any applicable reduction under section 1127(a))'.'';
            (4) by redesignating subparagraph (B) as subparagraph (D); 
        and
            (5) by inserting after subparagraph (A) the following new 
        subparagraphs:
    ``(B) Subject to subparagraph (C), if the claimant is determined to 
be entitled to past-due benefits under this title and the person 
representing the claimant is an attorney, the Commissioner of Social 
Security shall pay out of such past-due benefits (as determined before 
any applicable reduction under section 1631(g), and reduced by the 
amount of any reduction in benefits under this title or title II made 
pursuant to section 1127(a)) to such attorney an amount equal to so 
much of the maximum fee as does not exceed 25 percent of such past-due 
benefits (as so determined and so reduced).
    ``(C)(i) Whenever a fee for services is required to be certified 
for payment to an attorney from a claimant's past-due benefits pursuant 
to subparagraph (B), the Commissioner shall impose on the attorney an 
assessment calculated in accordance with clause (ii).
    ``(ii)(I) The amount of an assessment under clause (i) shall be 
equal to the product obtained by multiplying the amount of the 
representative's fee that would be required to be so certified by 
subparagraph (B) before the application of this subparagraph, by the 
percentage specified in subclause (II), except that the maximum amount 
of the assessment may not exceed $100.
    ``(II) The percentage specified in this subclause is such 
percentage rate as the Commissioner determines is necessary in order to 
achieve full recovery of the costs of determining and approving fees to 
attorneys from the past-due benefits of claimants, but not in excess of 
6.3 percent.
    ``(iii) The Commissioner may collect the assessment imposed on an 
attorney under clause (i) by offset from the amount of the fee 
otherwise required by subparagraph (B) to be paid to the attorney from 
a claimant's past-due benefits.
    ``(iv) An attorney subject to an assessment under clause (i) may 
not, directly or indirectly, request or otherwise obtain reimbursement 
for such assessment from the claimant whose claim gave rise to the 
assessment.
    ``(v) Assessments on attorneys collected under this subparagraph 
shall be deposited in the Treasury in a separate fund created for this 
purpose.
    ``(vi) The assessments authorized under this subparagraph shall be 
collected and available for obligation only to the extent and in the 
amount provided in advance in appropriations Acts. Amounts so 
appropriated are authorized to remain available until expended, for 
administrative expenses in carrying out this title and related laws.''.

SEC. 4. EFFECTIVE DATE.

    The amendments made by this Act shall apply with respect to fees 
for representation of claimants which are first required to be 
certified or approved under section 206 or 1631(d)(2) of the Social 
Security Act after 180 days after the date of the enactment of this 
Act.