I 

109TH CONGRESS 

2D SESSION H. R. 5211 

To improve the quality of life for senior citizens. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 26, 2006 

Mr. PAUL introduced the following bill; which was referred to the Committee 

on Ways and Means, and in addition to the Committee on Energy and 

Commerce, for a period to be subsequently determined by the Speaker, 

in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To improve the quality of life for senior citizens. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Senior Citizen’s Im5 proved Quality of Life Act’’. 

6 SEC. 2. PRESERVATION OF SOCIAL SECURITY. 

7 (a) INVESTMENT OF THE FEDERAL OLD-AGE AND

8 SURVIVORS INSURANCE TRUST FUND AND THE FEDERAL

9 DISABILITY INSURANCE TRUST FUND.— 


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1 (1) IN GENERAL.—Section 201(d) of the Social 

2 Security Act (42 U.S.C. 401(d)) is amended— 

3 (A) by inserting ‘‘(1)’’ after ‘‘(d)’’; 

4 (B) by striking ‘‘Such investments may be 

5 made only’’ and inserting the following: ‘‘Ex6 cept as provided in paragraph (2), such invest7 ments may be made only’’; 

8 (C) by striking the last sentence; and 

9 (D) by adding at the end the following new 

10 paragraph: 

11 ‘‘(2)(A) The Managing Trustee shall determine the 

12 annual surplus (as defined in subparagraph (B)) for each 

13 of the Trust Funds as of the end of each fiscal year. The 

14 Managing Trustee shall ensure that such annual surplus 

15 is invested, throughout the next following fiscal year, in— 

16 ‘‘(i) marketable interest-bearing obligations of 

17 the United States or obligations guaranteed as to 

18 both principal and interest by the United States, 

19 purchased on original issue or at the market price, 

20 or 

21 ‘‘(ii) certificates of deposit in insured depository 

22 institutions (as defined in section 3(c)(2) of the Fed23 eral Deposit Insurance Act). 


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1 ‘‘(B) For purposes of this paragraph, the ‘annual sur2 plus’ for either of the Trust Funds as of the end of a 

3 fiscal year is the excess (if any) of— 

4 ‘‘(i) the sum of— 

5 ‘‘(I) in the case of the Federal Old-Age 

6 and Survivors Insurance Trust Fund, the 

7 amounts appropriated to such Trust Fund 

8 under paragraphs (3) and (4) of subsection (a) 

9 for the fiscal year, 

10 ‘‘(II) in the case of the Federal Disability 

11 Insurance Trust Fund, the amounts appro12 priated to such Trust Fund under paragraphs 

13 (1) and (2) of subsection (b) for the fiscal year, 

14 and 

15 ‘‘(III) in either case, the amount appro16 priated to such Trust Fund under section 

17 121(e) of the Social Security Amendments of 

18 1983 for the fiscal year, and any amounts oth19 erwise credited to or deposited in such Trust 

20 Fund under this title for the fiscal year, over 

21 ‘‘(ii) the amounts paid or transferred from such 

22 Trust Fund during the fiscal year.’’. 

23 (2) EFFECTIVE DATE.—The amendments made 

24 by this subsection shall apply with respect to annual 


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1 surpluses as of the end of fiscal years beginning on 

2 or after October 1, 2005. 

3 (b) PROTECTION OF THE SOCIAL SECURITY TRUST

4 FUNDS FROM THE PUBLIC DEBT LIMIT.— 

5 (1) PROTECTION OF TRUST FUNDS.—Notwith6 standing any other provision of law— 

7 (A) no officer or employee of the United 

8 States may— 

9 (i) delay the deposit of any amount 

10 into (or delay the credit of any amount to) 

11 the Federal Old-Age and Survivors Insur12 ance Trust Fund or the Federal Disability 

13 Insurance Trust Fund or otherwise vary 

14 from the normal terms, procedures, or tim15 ing for making such deposits or credits, or 

16 (ii) refrain from the investment in 

17 public debt obligations of amounts in ei18 ther of such Trust Funds, if a purpose of 

19 such action or inaction is to not increase 

20 the amount of outstanding public debt obli21 gations, and 

22 (B) no officer or employee of the United 

23 States may disinvest amounts in either of such 

24 Trust Funds which are invested in public debt 

25 obligations if a purpose of the disinvestment is 


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1 to reduce the amount of outstanding public 

2 debt obligations. 

3 (2) PROTECTION OF BENEFITS AND EXPENDI4 TURES FOR ADMINISTRATIVE EXPENSES.— 

5 (A) IN GENERAL.—Notwithstanding para6 graph (1), during any period for which cash 

7 benefits or administrative expenses would not 

8 otherwise be payable from the Federal Old-Age 

9 and Survivors Insurance Trust Fund or the 

10 Federal Disability Insurance Trust Fund by 

11 reason of an inability to issue further public 

12 debt obligations because of the applicable public 

13 debt limit, public debt obligations held by such 

14 Trust Fund shall be sold or redeemed only for 

15 the purpose of making payment of such benefits 

16 or administrative expenses and only to the ex17 tent cash assets of such Trust Fund are not 

18 available from month to month for making pay19 ment of such benefits or administrative ex20 penses. 

21 (B) ISSUANCE OF CORRESPONDING

22 DEBT.—For purposes of undertaking the sale 

23 or redemption of public debt obligations held by 

24 the Federal Old-Age and Survivors Insurance 

25 Trust Fund or the Federal Disability Insurance 


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1 Trust Fund pursuant to subparagraph (A), the 

2 Secretary of the Treasury may issue cor3 responding public debt obligations to the public, 

4 in order to obtain the cash necessary for pay5 ment of benefits or administrative expenses 

6 from such Trust Fund, notwithstanding the 

7 public debt limit. 

8 (C) ADVANCE NOTICE OF SALE OR RE9 DEMPTION.—Not less than 3 days prior to the 

10 date on which, by reason of the public debt 

11 limit, the Secretary of the Treasury expects to 

12 undertake a sale or redemption authorized 

13 under subparagraph (A), the Secretary of the 

14 Treasury shall report to each House of the Con15 gress and to the Comptroller General of the 

16 United States regarding the expected sale or re17 demption. Upon receipt of such report, the 

18 Comptroller General shall review the extent of 

19 compliance with paragraph (1) and subpara20 graphs (A) and (B) of this paragraph and shall 

21 issue such findings and recommendations to 

22 each House of the Congress as the Comptroller 

23 General considers necessary and appropriate. 

24 (3) PUBLIC DEBT OBLIGATION.—For purposes 

25 of this subsection, the term ‘‘public debt obligation’’ 


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1 means any obligation subject to the public debt limit 

2 established under section 3101 of title 31, United 

3 States Code. 

4 SEC. 3. SOCIAL SECURITY FOR AMERICANS ONLY. 

5 (a) LIMITATIONS ON COVERAGE OF INDIVIDUALS

6 BASED ON EARNINGS OF INDIVIDUALS WHO ARE NOT

7 CITIZENS OR NATIONALS OF THE UNITED STATES.—Sec8 tion 215(e) of the Social Security Act (42 U.S.C. 415(e)) 

9 is amended— 

10 (1) by redesignating paragraphs (1) and (2) as 

11 subparagraphs (A) and (B), respectively; 

12 (2) by inserting ‘‘(1)’’ after ‘‘(e)’’; and 

13 (3) by adding at the end the following new 

14 paragraph: 

15 ‘‘(2) For purposes of subsections (b) and (d), in com16 puting an individual’s average indexed monthly earnings, 

17 or in the case of an individual whose primary insurance 

18 amount is computed under section 215(a) as in effect 

19 prior to January 1979, average monthly wage, such indi20 vidual shall not be credited with— 

21 ‘‘(A) any wages paid to such individual after 

22 December 31, 2006, while such individual is not a 

23 citizen or national of the United States, or 

24 ‘‘(B) any self-employment income derived by 

25 such individual during any taxable year beginning 


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1 after December 31, 2006, while such individual is 

2 not a citizen or national of the United States.’’. 

3 (b) REVISION OF AUTHORIZATION FOR TOTAL4 IZATION AGREEMENTS.— 

5 (1) IN GENERAL.—Section 233 of the Social 

6 Security Act (42 U.S.C. 433) is amended to read as 

7 follows: 

8 ‘‘INTERNATIONAL AGREEMENTS

9 ‘‘SEC. 233. The President is authorized to enter into 

10 agreements (subject to the other provisions of this title 

11 and of chapters 2 and 21 of the Internal Revenue Code 

12 of 1986) establishing arrangements between the United 

13 States and any foreign country for the purpose of resolv14 ing questions of entitlement to, and participation in, the 

15 social security system established by this title and the so16 cial security system of such foreign country. Any such 

17 agreement shall take into account the limitations on the 

18 crediting of wages and self-employment income under sec19 tion 215(e)(2).’’. 

20 (2) EFFECTIVE DATE; TERMINATION OF EXIST21 ING AGREEMENTS.—The amendment made by para22 graph (1) shall apply with respect to agreements 

23 taking effect after the date of the enactment of this 

24 Act. Any agreement in effect on such date which 

25 was entered into under section 233 of the Social Se26 curity Act (as in effect immediately before such date 


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1 of enactment) shall terminate on December 31, 2006 

2 (or as provided in such agreement, if earlier). 

3 SEC. 4. SENIORS’ HEALTH CARE FREEDOM. 

4 (a) FACILITATING THE USE OF PRIVATE CONTRACTS

5 UNDER THE MEDICARE PROGRAM.—Section 1802(b) of 

6 the Social Security Act (42 U.S.C. 1395a(b)) is amended 

7 by striking paragraph (3) and by redesignating para8 graphs (4) and (5) as paragraphs (3) and (4), respectively. 

9 (b) NO ELIGIBILITY CONDITION BASED ON REFUSAL

10 TO PARTICIPATE IN A GOVERNMENT PROGRAM.—No per11 sons otherwise eligible for old-age benefits under Social 

12 Security shall be denied such benefits because of their vol13 untary refusal to participate in any part of the Medicare 

14 program. 

15 SEC. 5. REPEAL OF INCLUSION IN GROSS INCOME OF SO16 CIAL SECURITY BENEFITS. 

17 (a) IN GENERAL.—Section 86 of the Internal Rev18 enue Code of 1986 (relating to social security benefits) 

19 is amended by adding at the end the following new sub20 section: 

21 ‘‘(g) TERMINATION.—This section shall not apply to 

22 any taxable year beginning after the date of the enactment 

23 of this subsection.’’. 

24 (b) SOCIAL SECURITY TRUST FUNDS HELD HARM25 LESS.— 


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1 (1) IN GENERAL.—There are hereby appro2 priated (out of any money in the Treasury not other3 wise appropriated) for each fiscal year to each fund 

4 under the Social Security Act or the Railroad Re5 tirement Act of 1974 an amount equal to the reduc6 tion in the transfers to such fund for such fiscal 

7 year by reason of section 86(g) of the Internal Rev8 enue Code of 1986. 

9 (2) NO TAX INCREASES.—It is the sense of the 

10 Congress that tax increases will not be used to pro11 vide the revenue necessary to carry out paragraph 

12 (1). 

13 SEC. 6. INCOME TAX CREDIT FOR PRESCRIPTION DRUGS 

14 PURCHASED BY INDIVIDUALS WHO HAVE AT15 TAINED RETIREMENT AGE. 

16 (a) IN GENERAL.—Subpart A of part IV of sub17 chapter A of chapter 1 of the Internal Revenue Code of 

18 1986 (relating to nonrefundable personal credits) is 

19 amended by inserting after section 25D the following new 

20 section: 

21 ‘‘SEC. 25E. PRESCRIPTION DRUGS PURCHASED BY INDIVID22 UALS WHO HAVE ATTAINED SOCIAL SECU23 RITY RETIREMENT AGE. 

24 ‘‘(a) IN GENERAL.—In the case of an individual who 

25 has attained social security retirement age, there shall be 


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1 allowed as a credit against the tax imposed by this chapter 

2 for the taxable year an amount equal to 80 percent of the 

3 amount paid by the taxpayer during the taxable year (and 

4 not compensated for by insurance or otherwise) for any 

5 prescribed drug (as defined in section 213(d)(3)) for use 

6 by such individual. 

7 ‘‘(b) SOCIAL SECURITY RETIREMENT AGE.—For 

8 purposes of this section, the term ‘social security retire9 ment age’ means retirement age (as defined in section 

10 216(l)(1) of the Social Security Act). 

11 ‘‘(c) DENIAL OF DOUBLE BENEFIT.— 

12 ‘‘(1) COORDINATION WITH MEDICAL EXPENSE

13 DEDUCTION.—The amount which would (but for this 

14 subsection) be taken into account by the taxpayer 

15 under section 213 for the taxable year shall be re16 duced by the credit (if any) allowed by this section 

17 to the taxpayer for such year. 

18 ‘‘(2) COORDINATION WITH MEDICAL AND

19 HEALTH SAVINGS ACCOUNTS.—No credit shall be al20 lowed under this section for amounts paid from any 

21 Archer MSA (as defined in section 220(d)) or any 

22 health savings account (as defined in section 

23 223(d)). 

24 ‘‘(d) ELECTION NOT TO HAVE CREDIT APPLY.—This 

25 section shall not apply to a taxpayer for a taxable year 


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1 if the taxpayer elects not to have this section apply for 

2 such year.’’. 

3 (b) CLERICAL AMENDMENT.—The table of sections 

4 for subpart A of part IV of subchapter A of chapter 1 

5 of such Code is amended by inserting after the item relat6 ing to section 25D the following new item: 

‘‘Sec. 25E. Prescription drugs purchased by individuals who have attained social 

security retirement age’’ 

7 (c) EFFECTIVE DATE.—The amendments made by 

8 this section shall apply to taxable years beginning more 

9 than 1 year after the date of the enactment of this Act. 

10 SEC. 7. FACILITATION OF IMPORTATION OF DRUGS AP11 PROVED BY FOOD AND DRUG ADMINISTRA12 TION AND INTERNET SALES OF PRESCRIP13 TION DRUGS. 

14 (a) FACILITATION OF IMPORTATION OF DRUGS AP15 PROVED BY FOOD AND DRUG ADMINISTRATION.—Chap16 ter VIII of the Federal Food, Drug, and Cosmetic Act (21 

17 U.S.C. 381 et seq.) is amended— 

18 (1) by striking section 804; and 

19 (2) in section 801(d)— 

20 (A) by striking paragraph (2); and 

21 (B) by striking ‘‘(d)(1)’’ and all that fol22 lows through the end of paragraph (1) and in23 serting the following: 


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1 ‘‘(d)(1)(A) A person who meets applicable legal re2 quirements to be an importer of drugs described in sub3 paragraph (B) may import such a drug (without regard 

4 to whether the person is a manufacturer of the drug) if 

5 the person submits to the Secretary an application to im6 port the drug and the Secretary approves the application. 

7 ‘‘(B) For purposes of subparagraph (A), the drugs 

8 described in this subparagraph are drugs that are subject 

9 to section 503(b)(1) or that are composed wholly or partly 

10 of insulin. 

11 ‘‘(C) The Secretary shall approve an application 

12 under subparagraph (A) if the application demonstrates 

13 that the drug to be imported meets all requirements under 

14 this Act for the admission of the drug into the United 

15 States, including demonstrating that— 

16 ‘‘(i) an application for the drug has been ap17 proved under section 505, or as applicable, under 

18 section 351 of the Public Health Service Act; and 

19 ‘‘(ii) the drug is not adulterated or misbranded. 

20 ‘‘(D) Not later than 60 days after the date on which 

21 an application under subparagraph (A) is submitted to the 

22 Secretary, the Secretary shall— 

23 ‘‘(i) approve the application; or 


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1 ‘‘(ii) refuse to approve the application and pro2 vide to the person who submitted the application the 

3 reason for such refusal. 

4 ‘‘(E) This paragraph may not be construed as affect5 ing any right secured by patent.’’. 

6 (b) INTERNET SALES OF PRESCRIPTION DRUGS.— 

7 Section 503(b) of the Federal Food, Drug, and Cosmetic 

8 Act (21 U.S.C. 353(b)) is amended by adding at the end 

9 the following paragraph: 

10 ‘‘(6)(A) With respect to the interstate sale of a pre11 scription drug through an Internet site, the Secretary may 

12 not with respect to such sale take any action under this 

13 Act against any of the persons involved if— 

14 ‘‘(i) the sale was made in compliance with this 

15 Act and with State laws that are applicable to the 

16 sale of the drug; and 

17 ‘‘(ii) accurate information regarding compliance 

18 with this Act and such State laws is posted on the 

19 Internet site. 

20 ‘‘(B) For purposes of subparagraph (A), the sale of 

21 a prescription drug by a person shall be considered to be 

22 an interstate sale of the drug through an Internet site if— 

23 ‘‘(i) the purchaser of the drug submits the pur24 chase order for the drug, or conducts any other part 


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1 of the sales transaction for the drug, through an 

2 Internet site; and 

3 ‘‘(ii) pursuant to such sale, the person intro4 duces the drug into interstate commerce or delivers 

5 the drug for introduction into such commerce. 

6 ‘‘(C) Subparagraph (A) may not be construed as au7 thorizing the Secretary to enforce any violation of State 

8 law. 

9 ‘‘(D) For purposes of this paragraph, the term ‘pre10 scription drug’ means a drug that is subject to paragraph 

11 (1).’’. 

12 (c) CONFORMING AMENDMENTS.—Section 801(d) of 

13 the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 

14 381(d)) is amended— 

15 (1) by redesignating paragraphs (3) and (4) as 

16 paragraphs (2) and (3), respectively; 

17 (2) in subclause (III) of paragraph (2)(A)(i) (as 

18 redesignated by this subsection), by striking ‘‘para19 graph (4)’’ and inserting ‘‘paragraph (3)’’; and 

20 (3) in paragraph (3) (as redesignated by this 

21 subsection), by striking ‘‘paragraph (3)’’ each place 

22 such term appears and inserting ‘‘paragraph (2)’’. 

23 (d) REGULATIONS OF SECRETARY OF HEALTH AND

24 HUMAN SERVICES; EFFECTIVE DATE.— 


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1 (1) REGULATIONS.—Before the expiration of 

2 the period specified in paragraph (2), the Secretary 

3 of Health and Human Services shall promulgate reg4 ulations to carry out the amendments to the Federal 

5 Food, Drug, and Cosmetic Act that are made by this 

6 section. 

7 (2) EFFECTIVE DATE.—The amendments to the 

8 Federal Food, Drug, and Cosmetic Act that are 

9 made by this section take effect upon the expiration 

10 of the one-year period beginning on the date of the 

11 enactment of this Act, without regard to whether the 

12 regulations required in paragraph (1) have been pro13 mulgated. 

Æ 


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