I 

108TH CONGRESS 

1ST SESSION H. R. 743

To amend the Social Security Act and the Internal Revenue Code of 1986 

to provide additional safeguards for Social Security and Supplemental 

Security Income beneficiaries with representative payees, to enhance program protections, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 12, 2003

Mr. SHAW (for himself, Mr. MATSUI, Mr. COLLINS, Mr. POMEROY, Mr. LEWIS

of Kentucky, Mr. BECERRA, Mr. RYAN of Wisconsin, Mrs. JONES of 

Ohio, Mr. RANGEL, Mr. FOLEY, Mr. BALLENGER, Mr. FLETCHER, Ms. 

HARRIS, Mrs. NORTHUP, and Mr. WHITFIELD) introduced the following 

bill; which was referred to the Committee on Ways and Means 

A BILL

To amend the Social Security Act and the Internal Revenue 

Code of 1986 to provide additional safeguards for Social 

Security and Supplemental Security Income beneficiaries 

with representative payees, to enhance program protections, and for other purposes.

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 AND TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Social Security Protection Act of 2003’’. 
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1 (b) TABLE OF CONTENTS.—The table of contents is 

2 as follows:

Sec. 1. Short title and table of contents. 

TITLE I—PROTECTION OF BENEFICIARIES 

Subtitle A—Representative Payees 

Sec. 101. Authority to reissue benefits misused by organizational representative 

payees. 

Sec. 102. Oversight of representative payees. 

Sec. 103. Disqualification from service as representative payee of persons convicted of offenses resulting in imprisonment for more than 1 

year or fleeing prosecution, custody, or confinement. 

Sec. 104. Fee forfeiture in case of benefit misuse by representative payees. 

Sec. 105. Liability of representative payees for misused benefits. 

Sec. 106. Authority to redirect delivery of benefit payments when a representative payee fails to provide required accounting. 

Subtitle B—Enforcement 

Sec. 111. Civil monetary penalty authority with respect to wrongful conversions 

by representative payees. 

TITLE II—PROGRAM PROTECTIONS 

Sec. 201. Civil monetary penalty authority with respect to knowing withholding 

of material facts. 

Sec. 202. Issuance by Commissioner of Social Security of receipts to acknowledge submission of reports of changes in work or earnings status of disabled beneficiaries. 

Sec. 203. Denial of title II benefits to persons fleeing prosecution, custody, or 

confinement, and to persons violating probation or parole. 

Sec. 204. Requirements relating to offers to provide for a fee a product or service available without charge from the Social Security Administration. 

Sec. 205. Refusal to recognize certain individuals as claimant representatives. 

Sec. 206. Penalty for corrupt or forcible interference with administration of Social Security Act. 

Sec. 207. Use of symbols, emblems, or names in reference to social security or 

medicare. 

Sec. 208. Disqualification from payment during trial work period upon conviction of fraudulent concealment of work activity. 

Sec. 209. Authority for judicial orders of restitution. 

TITLE III—ATTORNEY FEE PAYMENT SYSTEM IMPROVEMENTS 

Sec. 301. Cap on attorney assessments. 

Sec. 302. Extension of attorney fee payment system to title XVI claims. 

TITLE IV—MISCELLANEOUS AND TECHNICAL AMENDMENTS 

Subtitle A—Amendments Relating to the Ticket to Work and Work 

Incentives Improvement Act of 1999
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Sec. 401. Application of demonstration authority sunset date to new projects. 

Sec. 402. Expansion of waiver authority available in connection with demonstration projects providing for reductions in disability insurance benefits based on earnings. 

Sec. 403. Funding of demonstration projects provided for reductions in disability insurance benefits based on earnings. 

Sec. 404. Availability of Federal and State work incentive services to additional 

individuals. 

Sec. 405. Technical amendment clarifying treatment for certain purposes of individual work plans under the Ticket to Work and Self-Sufficiency Program. 

Subtitle B—Miscellaneous Amendments 

Sec. 411. Elimination of transcript requirement in remand cases fully favorable 

to the claimant. 

Sec. 412. Nonpayment of benefits upon removal from the United States. 

Sec. 413. Reinstatement of certain reporting requirements. 

Sec. 414. Clarification of definitions regarding certain survivor benefits. 

Sec. 415. Clarification respecting the FICA and SECA tax exemptions for an 

individual whose earnings are subject to the laws of a totalization agreement partner. 

Sec. 416. Coverage under divided retirement system for public employees in 

Kentucky. 

Sec. 417. Compensation for the Social Security Advisory Board. 

Sec. 418. 60-month period of employment requirement for application of government pension offset exemption. 

Subtitle C—Technical Amendments 

Sec. 421. Technical correction relating to responsible agency head. 

Sec. 422. Technical correction relating to retirement benefits of ministers. 

Sec. 423. Technical corrections relating to domestic employment. 

Sec. 424. Technical corrections of outdated references. 

Sec. 425. Technical correction respecting self-employment income in community 

property States.

1 TITLE I—PROTECTION OF 

2 BENEFICIARIES 

3 Subtitle A—Representative Payees 

4 SEC. 101. AUTHORITY TO REISSUE BENEFITS MISUSED BY 

5 ORGANIZATIONAL REPRESENTATIVE PAYEES. 

6 (a) TITLE II AMENDMENTS.—

7 (1) REISSUANCE OF BENEFITS.—Section 

8 205(j)(5) of the Social Security Act (42 

9 U.S.C. 405(j)(5)) is amended by inserting after the 
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1 first sentence the following new sentences: ‘‘In any 

2 case in which a representative payee that—

3 ‘‘(A) is not an individual (regardless of whether 

4 it is a ‘qualified organization’ within the meaning of 

5 paragraph (4)(B)); or 

6 ‘‘(B) is an individual who, for any month dur7 ing a period when misuse occurs, serves 15 or more 

8 individuals who are beneficiaries under this title, 

9 title VIII, title XVI, or any combination of such ti10 tles; 

11 misuses all or part of an individual’s benefit paid to such 

12 representative payee, the Commissioner of Social Security 

13 shall certify for payment to the beneficiary or the bene14 ficiary’s alternative representative payee an amount equal 

15 to the amount of such benefit so misused. The provisions 

16 of this paragraph are subject to the limitations of para17 graph (7)(B).’’. 

18 (2) MISUSE OF BENEFITS DEFINED.—Section 

19 205(j) of such Act (42 U.S.C. 405(j)) is amended 

20 by adding at the end the following new paragraph: 

21 ‘‘(8) For purposes of this subsection, misuse of bene22 fits by a representative payee occurs in any case in which 

23 the representative payee receives payment under this title 

24 for the use and benefit of another person and converts 

25 such payment, or any part thereof, to a use other than
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1 for the use and benefit of such other person. The Commis2 sioner of Social Security may prescribe by regulation the 

3 meaning of the term ‘use and benefit’ for purposes of this 

4 paragraph.’’. 

5 (b) TITLE VIII AMENDMENTS.—

6 (1) REISSUANCE OF BENEFITS.—Section 807(i) 

7 of the Social Security Act (42 U.S.C. 1007(i)) is 

8 amended by inserting after the first sentence the fol9 lowing new sentences: ‘‘In any case in which a rep10 resentative payee that—

11 ‘‘(1) is not an individual; or 

12 ‘‘(2) is an individual who, for any month during 

13 a period when misuse occurs, serves 15 or more indi14 viduals who are beneficiaries under this title, title II, 

15 title XVI, or any combination of such titles; 

16 misuses all or part of an individual’s benefit paid to such 

17 representative payee, the Commissioner of Social Security 

18 shall pay to the beneficiary or the beneficiary’s alternative 

19 representative payee an amount equal to the amount of 

20 such benefit so misused. The provisions of this paragraph 

21 are subject to the limitations of subsection (l)(2).’’. 

22 (2) MISUSE OF BENEFITS DEFINED.—Section 

23 807 of such Act (42 U.S.C. 1007) is amended by 

24 adding at the end the following new subsection: 
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1 ‘‘(j) MISUSE OF BENEFITS.—For purposes of this 

2 title, misuse of benefits by a representative payee occurs 

3 in any case in which the representative payee receives pay4 ment under this title for the use and benefit of another 

5 person under this title and converts such payment, or any 

6 part thereof, to a use other than for the use and benefit 

7 of such person. The Commissioner of Social Security may 

8 prescribe by regulation the meaning of the term ‘use and 

9 benefit’ for purposes of this subsection.’’. 

10 (3) TECHNICAL AMENDMENT.—Section 807(a) 

11 of such Act (42 U.S.C. 1007(a)) is amended, in the 

12 first sentence, by striking ‘‘for his or her benefit’’ 

13 and inserting ‘‘for his or her use and benefit’’. 

14 (c) TITLE XVI AMENDMENTS.—

15 (1) REISSUANCE OF BENEFITS.—Section 

16 1631(a)(2)(E) of such Act (42 

17 U.S.C. 1383(a)(2)(E)) is amended by inserting 

18 after the first sentence the following new sentences: 

19 ‘‘In any case in which a representative payee that—

20 ‘‘(i) is not an individual (regardless of whether 

21 it is a ‘qualified organization’ within the meaning of 

22 subparagraph (D)(ii)); or 

23 ‘‘(ii) is an individual who, for any month during 

24 a period when misuse occurs, serves 15 or more indi-
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1 viduals who are beneficiaries under this title, title II, 

2 title VIII, or any combination of such titles; 

3 misuses all or part of an individual’s benefit paid to the 

4 representative payee, the Commissioner of Social Security 

5 shall pay to the beneficiary or the beneficiary’s alternative 

6 representative payee an amount equal to the amount of 

7 the benefit so misused. The provisions of this subpara8 graph are subject to the limitations of subparagraph 

9 (H)(ii).’’. 

10 (2) EXCLUSION OF REISSUED BENEFITS FROM

11 RESOURCES.—Section 1613(a) of such Act (42 

12 U.S.C. 1382b(a)) is amended—

13 (A) in paragraph (12), by striking ‘‘and’’ 

14 at the end; 

15 (B) in paragraph (13), by striking the pe16 riod and inserting ‘‘; and’’; and 

17 (C) by inserting after paragraph (13) the 

18 following new paragraph: 

19 ‘‘(14) for the 9-month period beginning after 

20 the month in which received, any amount received by 

21 such individual (or spouse) or any other person 

22 whose income is deemed to be included in such indi23 vidual’s (or spouse’s) income for purposes of this 

24 title as restitution for benefits under this title, title 

25 II, or title VIII that a representative payee of such 
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1 individual (or spouse) or such other person under 

2 section 205(j), 807, or 1631(a)(2) has misused.’’. 

3 (3) MISUSE OF BENEFITS DEFINED.—Section 

4 1631(a)(2)(A) of such Act (42 

5 U.S.C. 1383(a)(2)(A)) is amended by adding at the 

6 end the following new clause: 

7 ‘‘(iv) For purposes of this paragraph, misuse of bene8 fits by a representative payee occurs in any case in which 

9 the representative payee receives payment under this title 

10 for the use and benefit of another person and converts 

11 such payment, or any part thereof, to a use other than 

12 for the use and benefit of such other person. The Commis13 sioner of Social Security may prescribe by regulation the 

14 meaning of the term ‘use and benefit’ for purposes of this 

15 clause.’’. 

16 (d) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to any case of benefit misuse by 

18 a representative payee with respect to which the Commis19 sioner makes the determination of misuse on or after Jan20 uary 1, 1995. 

21 SEC. 102. OVERSIGHT OF REPRESENTATIVE PAYEES. 

22 (a) CERTIFICATION OF BONDING AND LICENSING

23 REQUIREMENTS FOR NONGOVERNMENTAL ORGANIZA24 TIONAL REPRESENTATIVE PAYEES.—
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1 (1) TITLE II AMENDMENTS.—Section 205(j) of 

2 the Social Security Act (42 U.S.C. 405(j)) is 

3 amended—

4 (A) in paragraph (2)(C)(v), by striking ‘‘a 

5 community-based nonprofit social service agen6 cy licensed or bonded by the State’’ in sub7 clause (I) and inserting ‘‘a certified community8 based nonprofit social service agency (as de9 fined in paragraph (9))’’; 

10 (B) in paragraph (3)(F), by striking ‘‘com11 munity-based nonprofit social service agencies’’ 

12 and inserting ‘‘certified community-based non13 profit social service agencies (as defined in 

14 paragraph (9))’’; 

15 (C) in paragraph (4)(B), by striking ‘‘any 

16 community-based nonprofit social service agen17 cy which is bonded or licensed in each State in 

18 which it serves as a representative payee’’ and 

19 inserting ‘‘any certified community-based non20 profit social service agency (as defined in para21 graph (9))’’; and 

22 (D) by adding after paragraph (8) (as 

23 added by section 101(a)(2) of this Act) the fol24 lowing new paragraph:
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1 ‘‘(9) For purposes of this subsection, the term ‘cer2 tified community-based nonprofit social service agency’ 

3 means a community-based nonprofit social service agency 

4 which is in compliance with requirements, under regula5 tions which shall be prescribed by the Commissioner, for 

6 annual certification to the Commissioner that it is bonded 

7 in accordance with requirements specified by the Commis8 sioner and that it is licensed in each State in which it 

9 serves as a representative payee (if licensing is available 

10 in such State) in accordance with requirements specified 

11 by the Commissioner. Any such annual certification shall 

12 include a copy of any independent audit on such agency 

13 which may have been performed since the previous certifi14 cation.’’. 

15 (2) TITLE XVI AMENDMENTS.—Section 

16 1631(a)(2) of such Act (42 U.S.C. 1383(a)(2)) is 

17 amended—

18 (A) in subparagraph (B)(vii), by striking 

19 ‘‘a community-based nonprofit social service 

20 agency licensed or bonded by the State’’ in sub21 clause (I) and inserting ‘‘a certified community22 based nonprofit social service agency (as de23 fined in subparagraph (I))’’; 

24 (B) in subparagraph (D)(ii)—
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1 (i) by striking ‘‘or any community2 based’’ and all that follows through ‘‘in ac3 cordance’’ in subclause (II) and inserting 

4 ‘‘or any certified community-based non5 profit social service agency (as defined in 

6 subparagraph (I)), if the agency, in ac7 cordance’’; 

8 (ii) by redesignating items (aa) and 

9 (bb) as subclauses (I) and (II), respectively 

10 (and adjusting the margination accord11 ingly); and 

12 (iii) by striking ‘‘subclause (II)(bb)’’ 

13 and inserting ‘‘subclause (II)’’; and 

14 (C) by adding at the end the following new 

15 subparagraph: 

16 ‘‘(I) For purposes of this paragraph, the term ‘cer17 tified community-based nonprofit social service agency’ 

18 means a community-based nonprofit social service agency 

19 which is in compliance with requirements, under regula20 tions which shall be prescribed by the Commissioner, for 

21 annual certification to the Commissioner that it is bonded 

22 in accordance with requirements specified by the Commis23 sioner and that it is licensed in each State in which it 

24 serves as a representative payee (if licensing is available 

25 in the State) in accordance with requirements specified by 
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1 the Commissioner. Any such annual certification shall in2 clude a copy of any independent audit on the agency which 

3 may have been performed since the previous certifi4 cation.’’. 

5 (3) EFFECTIVE DATE.—The amendments made 

6 by this subsection shall take effect on the first day 

7 of the thirteenth month beginning after the date of 

8 the enactment of this Act. 

9 (b) PERIODIC ONSITE REVIEW.—

10 (1) TITLE II AMENDMENT.—Section 205(j)(6) 

11 of such Act (42 U.S.C. 405(j)(6)) is amended to 

12 read as follows: 

13 ‘‘(6)(A) In addition to such other reviews of rep14 resentative payees as the Commissioner of Social Security 

15 may otherwise conduct, the Commissioner shall provide for 

16 the periodic onsite review of any person or agency located 

17 in the United States that receives the benefits payable 

18 under this title (alone or in combination with benefits pay19 able under title VIII or title XVI) to another individual 

20 pursuant to the appointment of such person or agency as 

21 a representative payee under this subsection, section 807, 

22 or section 1631(a)(2) in any case in which—

23 ‘‘(i) the representative payee is a person who 

24 serves in that capacity with respect to 15 or more 

25 such individuals; 
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1 ‘‘(ii) the representative payee is a certified com2 munity-based nonprofit social service agency (as de3 fined in paragraph (9) of this subsection or section 

4 1631(a)(2)(I)); or 

5 ‘‘(iii) the representative payee is an agency 

6 (other than an agency described in clause (ii)) that 

7 serves in that capacity with respect to 50 or more 

8 such individuals. 

9 ‘‘(B) Within 120 days after the end of each fiscal 

10 year, the Commissioner shall submit to the Committee on 

11 Ways and Means of the House of Representatives and the 

12 Committee on Finance of the Senate a report on the re13 sults of periodic onsite reviews conducted during the fiscal 

14 year pursuant to subparagraph (A) and of any other re15 views of representative payees conducted during such fis16 cal year in connection with benefits under this title. Each 

17 such report shall describe in detail all problems identified 

18 in such reviews and any corrective action taken or planned 

19 to be taken to correct such problems, and shall include—

20 ‘‘(i) the number of such reviews; 

21 ‘‘(ii) the results of such reviews; 

22 ‘‘(iii) the number of cases in which the rep23 resentative payee was changed and why; 

24 ‘‘(iv) the number of cases involving the exercise 

25 of expedited, targeted oversight of the representative 
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1 payee by the Commissioner conducted upon receipt 

2 of an allegation of misuse of funds, failure to pay a 

3 vendor, or a similar irregularity; 

4 ‘‘(v) the number of cases discovered in which 

5 there was a misuse of funds; 

6 ‘‘(vi) how any such cases of misuse of funds 

7 were dealt with by the Commissioner; 

8 ‘‘(vii) the final disposition of such cases of mis9 use of funds, including any criminal penalties im10 posed; and 

11 ‘‘(viii) such other information as the Commis12 sioner deems appropriate.’’. 

13 (2) TITLE VIII AMENDMENT.—Section 807 of 

14 such Act (as amended by section 101(b)(2) of this 

15 Act) is amended further by adding at the end the 

16 following new subsection: 

17 ‘‘(k) PERIODIC ONSITE REVIEW.—(1) In addition to 

18 such other reviews of representative payees as the Com19 missioner of Social Security may otherwise conduct, the 

20 Commissioner may provide for the periodic onsite review 

21 of any person or agency that receives the benefits payable 

22 under this title (alone or in combination with benefits pay23 able under title II or title XVI) to another individual pur24 suant to the appointment of such person or agency as a
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1 representative payee under this section, section 205(j), or 

2 section 1631(a)(2) in any case in which—

3 ‘‘(A) the representative payee is a person who 

4 serves in that capacity with respect to 15 or more 

5 such individuals; or 

6 ‘‘(B) the representative payee is an agency that 

7 serves in that capacity with respect to 50 or more 

8 such individuals. 

9 ‘‘(2) Within 120 days after the end of each fiscal 

10 year, the Commissioner shall submit to the Committee on 

11 Ways and Means of the House of Representatives and the 

12 Committee on Finance of the Senate a report on the re13 sults of periodic onsite reviews conducted during the fiscal 

14 year pursuant to paragraph (1) and of any other reviews 

15 of representative payees conducted during such fiscal year 

16 in connection with benefits under this title. Each such re17 port shall describe in detail all problems identified in such 

18 reviews and any corrective action taken or planned to be 

19 taken to correct such problems, and shall include—

20 ‘‘(A) the number of such reviews; 

21 ‘‘(B) the results of such reviews; 

22 ‘‘(C) the number of cases in which the rep23 resentative payee was changed and why; 

24 ‘‘(D) the number of cases involving the exercise 

25 of expedited, targeted oversight of the representative 
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1 payee by the Commissioner conducted upon receipt 

2 of an allegation of misuse of funds, failure to pay a 

3 vendor, or a similar irregularity; 

4 ‘‘(E) the number of cases discovered in which 

5 there was a misuse of funds; 

6 ‘‘(F) how any such cases of misuse of funds 

7 were dealt with by the Commissioner; 

8 ‘‘(G) the final disposition of such cases of mis9 use of funds, including any criminal penalties im10 posed; and 

11 ‘‘(H) such other information as the Commis12 sioner deems appropriate.’’. 

13 (3) TITLE XVI AMENDMENT.—Section 

14 1631(a)(2)(G) of such Act (42 

15 U.S.C. 1383(a)(2)(G)) is amended to read as fol16 lows: 

17 ‘‘(G)(i) In addition to such other reviews of rep18 resentative payees as the Commissioner of Social Security 

19 may otherwise conduct, the Commissioner shall provide for 

20 the periodic onsite review of any person or agency that 

21 receives the benefits payable under this title (alone or in 

22 combination with benefits payable under title II or title 

23 VIII) to another individual pursuant to the appointment 

24 of the person or agency as a representative payee under 
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1 this paragraph, section 205(j), or section 807 in any case 

2 in which—

3 ‘‘(I) the representative payee is a person who 

4 serves in that capacity with respect to 15 or more 

5 such individuals; 

6 ‘‘(II) the representative payee is a certified 

7 community-based nonprofit social service agency (as 

8 defined in subparagraph (I) of this paragraph or 

9 section 205(j)(9)); or 

10 ‘‘(III) the representative payee is an agency 

11 (other than an agency described in subclause (II)) 

12 that serves in that capacity with respect to 50 or 

13 more such individuals. 

14 ‘‘(ii) Within 120 days after the end of each fiscal 

15 year, the Commissioner shall submit to the Committee on 

16 Ways and Means of the House of Representatives and the 

17 Committee on Finance of the Senate a report on the re18 sults of periodic onsite reviews conducted during the fiscal 

19 year pursuant to clause (i) and of any other reviews of 

20 representative payees conducted during such fiscal year in 

21 connection with benefits under this title. Each such report 

22 shall describe in detail all problems identified in the re23 views and any corrective action taken or planned to be 

24 taken to correct the problems, and shall include—

25 ‘‘(I) the number of the reviews; 
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1 ‘‘(II) the results of such reviews; 

2 ‘‘(III) the number of cases in which the rep3 resentative payee was changed and why; 

4 ‘‘(IV) the number of cases involving the exercise 

5 of expedited, targeted oversight of the representative 

6 payee by the Commissioner conducted upon receipt 

7 of an allegation of misuse of funds, failure to pay a 

8 vendor, or a similar irregularity; 

9 ‘‘(V) the number of cases discovered in which 

10 there was a misuse of funds; 

11 ‘‘(VI) how any such cases of misuse of funds 

12 were dealt with by the Commissioner; 

13 ‘‘(VII) the final disposition of such cases of 

14 misuse of funds, including any criminal penalties im15 posed; and 

16 ‘‘(VIII) such other information as the Commis17 sioner deems appropriate.’’. 
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1 SEC. 103. DISQUALIFICATION FROM SERVICE AS REP2 RESENTATIVE PAYEE OF PERSONS CON3 VICTED OF OFFENSES RESULTING IN IMPRIS4 ONMENT FOR MORE THAN 1 YEAR OR FLEE5 ING PROSECUTION, CUSTODY, OR CONFINE6 MENT. 

7 (a) TITLE II AMENDMENTS.—Section 205(j)(2) of 

8 the Social Security Act (42 U.S.C. 405(j)(2)) is amend9 ed—

10 (1) in subparagraph (B)(i)—

11 (A) by striking ‘‘and’’ at the end of sub12 clause (III); 

13 (B) by redesignating subclause (IV) as 

14 subclause (VI); and 

15 (C) by inserting after subclause (III) the 

16 following new subclauses: 

17 ‘‘(IV) obtain information concerning whether 

18 such person has been convicted of any other offense 

19 under Federal or State law which resulted in impris20 onment for more than 1 year, 

21 ‘‘(V) obtain information concerning whether 

22 such person is a person described in section 

23 202(x)(1)(A)(iv), and’’. 

24 (2) in subparagraph (C)(i)(II), by striking 

25 ‘‘subparagraph (B)(i)(IV),,’’ and inserting ‘‘subpara26 graph (B)(i)(VI)’’ and striking ‘‘section
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1 1631(a)(2)(B)(ii)(IV)’’ and inserting ‘‘section 

2 1631(a)(2)(B)(ii)(VI)’’; and 

3 (3) in subparagraph (C)(i)—

4 (A) by striking ‘‘or’’ at the end of sub5 clause (II); 

6 (B) by striking the period at the end of 

7 subclause (III) and inserting a comma; and 

8 (C) by adding at the end the following new 

9 subclauses: 

10 ‘‘(IV) such person has previously been convicted 

11 as described in subparagraph (B)(i)(IV), unless the 

12 Commissioner determines that such certification 

13 would be appropriate notwithstanding such convic14 tion, or 

15 ‘‘(V) such person is person described in section 

16 202(x)(1)(A)(iv).’’. 

17 (b) TITLE VIII AMENDMENTS.—Section 807 of such 

18 Act (42 U.S.C. 1007) is amended—

19 (1) in subsection (b)(2)—

20 (A) by striking ‘‘and’’ at the end of sub21 paragraph (C); 

22 (B) by redesignating subparagraph (D) as 

23 subparagraph (F); and 

24 (C) by inserting after subparagraph (C) 

25 the following new subparagraphs: 
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1 ‘‘(D) obtain information concerning wheth2 er such person has been convicted of any other 

3 offense under Federal or State law which re4 sulted in imprisonment for more than 1 year; 

5 ‘‘(E) obtain information concerning wheth6 er such person is a person described in section 

7 804(a)(2); and’’; and 

8 (2) in subsection (d)(1)—

9 (A) by striking ‘‘or’’ at the end of subpara10 graph (B); 

11 (B) by striking the period at the end of 

12 subparagraph (C) and inserting a semicolon; 

13 and 

14 (C) by adding at the end the following new 

15 subparagraphs: 

16 ‘‘(D) such person has previously been con17 victed as described in subsection (b)(2)(D), un18 less the Commissioner determines that such 

19 payment would be appropriate notwithstanding 

20 such conviction; or 

21 ‘‘(E) such person is a person described in 

22 section 804(a)(2).’’. 

23 (c) TITLE XVI AMENDMENTS.—Section 

24 1631(a)(2)(B) of such Act (42 U.S.C. 1383(a)(2)(B)) is 

25 amended—
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1 (1) in clause (ii)—

2 (A) by striking ‘‘and’’ at the end of sub3 clause (III); 

4 (B) by redesignating subclause (IV) as 

5 subclause (VI); and 

6 (C) by inserting after subclause (III) the 

7 following new subclauses: 

8 ‘‘(IV) obtain information concerning whether 

9 the person has been convicted of any other offense 

10 under Federal or State law which resulted in impris11 onment for more than 1 year; 

12 ‘‘(V) obtain information concerning whether 

13 such person is a person described in section 

14 1611(e)(4)(A); and’’; 

15 (2) in clause (iii)(II)—

16 (A) by striking ‘‘clause (ii)(IV)’’ and in17 serting ‘‘clause (ii)(VI)’’; and 

18 (B) by striking ‘‘section 

19 205(j)(2)(B)(i)(IV)’’ and inserting ‘‘section 

20 205(j)(2)(B)(i)(VI)’’; and 

21 (3) in clause (iii)—

22 (A) by striking ‘‘or’’ at the end of sub23 clause (II); 

24 (B) by striking the period at the end of 

25 subclause (III) and inserting a semicolon; and 
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1 (C) by adding at the end the following new 

2 subclauses: 

3 ‘‘(IV) the person has previously been convicted 

4 as described in clause (ii)(IV) of this subparagraph, 

5 unless the Commissioner determines that the pay6 ment would be appropriate notwithstanding the con7 viction; or 

8 ‘‘(V) such person is a person described in sec9 tion 1611(e)(4)(A).’’. 

10 (d) EFFECTIVE DATE.—The amendments made by 

11 this section shall take effect on the first day of the thir12 teenth month beginning after the date of the enactment 

13 of this Act. 

14 (e) REPORT TO THE CONGRESS.—The Commissioner 

15 of Social Security, in consultation with the Inspector Gen16 eral of the Social Security Administration, shall prepare 

17 a report evaluating whether the existing procedures and 

18 reviews for the qualification (including disqualification) of 

19 representative payees are sufficient to enable the Commis20 sioner to protect benefits from being misused by represent21 ative payees. The Commissioner shall submit the report 

22 to the Committee on Ways and Means of the House of 

23 Representatives and the Committee on Finance of the 

24 Senate no later than 270 days after the date of the enact25 ment of this Act. The Commissioner shall include in such 
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1 report any recommendations that the Commissioner con2 siders appropriate. 

3 SEC. 104. FEE FORFEITURE IN CASE OF BENEFIT MISUSE 

4 BY REPRESENTATIVE PAYEES. 

5 (a) TITLE II AMENDMENTS.—Section 205(j)(4)(A)(i) 

6 of the Social Security Act (42 U.S.C. 405(j)(4)(A)(i)) is 

7 amended—

8 (1) in the first sentence, by striking ‘‘A’’ and 

9 inserting ‘‘Except as provided in the next sentence, 

10 a’’; and 

11 (2) in the second sentence, by striking ‘‘The 

12 Secretary’’ and inserting the following: 

13 ‘‘A qualified organization may not collect a fee from an 

14 individual for any month with respect to which the Com15 missioner of Social Security or a court of competent juris16 diction has determined that the organization misused all 

17 or part of the individual’s benefit, and any amount so col18 lected by the qualified organization for such month shall 

19 be treated as a misused part of the individual’s benefit 

20 for purposes of paragraphs (5) and (6). The Commis21 sioner’’. 

22 (b) TITLE XVI AMENDMENTS.—Section 

23 1631(a)(2)(D)(i) of such Act (42 

24 U.S.C. 1383(a)(2)(D)(i)) is amended—
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1 (1) in the first sentence, by striking ‘‘A’’ and 

2 inserting ‘‘Except as provided in the next sentence, 

3 a’’; and 

4 (2) in the second sentence, by striking ‘‘The 

5 Commissioner’’ and inserting the following: ‘‘A 

6 qualified organization may not collect a fee from an 

7 individual for any month with respect to which the 

8 Commissioner of Social Security or a court of com9 petent jurisdiction has determined that the organiza10 tion misused all or part of the individual’s benefit, 

11 and any amount so collected by the qualified organi12 zation for such month shall be treated as a misused 

13 part of the individual’s benefit for purposes of sub14 paragraphs (E) and (F). The Commissioner’’. 

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

16 this section shall apply to any month involving benefit mis17 use by a representative payee in any case with respect to 

18 which the Commissioner of Social Security or a court of 

19 competent jurisdiction makes the determination of misuse 

20 after 180 days after the date of the enactment of this Act. 

21 SEC. 105. LIABILITY OF REPRESENTATIVE PAYEES FOR 

22 MISUSED BENEFITS. 

23 (a) TITLE II AMENDMENTS.—Section 205(j) of the 

24 Social Security Act (42 U.S.C. 405(j)) (as amended by 

25 sections 101 and 102) is amended further—
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•HR 743 IH 

1 (1) by redesignating paragraphs (7), (8), and 

2 (9) as paragraphs (8), (9), and (10), respectively; 

3 (2) in paragraphs (2)(C)(v), (3)(F), and (4)(B), 

4 by striking ‘‘paragraph (9)’’ and inserting ‘‘para5 graph (10)’’; 

6 (3) in paragraph (6)(A)(ii), by striking ‘‘para7 graph (9)’’ and inserting ‘‘paragraph (10)’’; and 

8 (4) by inserting after paragraph (6) the fol9 lowing new paragraph: 

10 ‘‘(7)(A) If the Commissioner of Social Security or a 

11 court of competent jurisdiction determines that a rep12 resentative payee that is not a Federal, State, or local gov13 ernment agency has misused all or part of an individual’s 

14 benefit that was paid to such representative payee under 

15 this subsection, the representative payee shall be liable for 

16 the amount misused, and such amount (to the extent not 

17 repaid by the representative payee) shall be treated as an 

18 overpayment of benefits under this title to the representa19 tive payee for all purposes of this Act and related laws 

20 pertaining to the recovery of such overpayments. Subject 

21 to subparagraph (B), upon recovering all or any part of 

22 such amount, the Commissioner shall certify an amount 

23 equal to the recovered amount for payment to such indi24 vidual or such individual’s alternative representative 

25 payee. 
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1 ‘‘(B) The total of the amount certified for payment 

2 to such individual or such individual’s alternative rep3 resentative payee under subparagraph (A) and the amount 

4 certified for payment under paragraph (5) may not exceed 

5 the total benefit amount misused by the representative 

6 payee with respect to such individual.’’. 

7 (b) TITLE VIII AMENDMENT.—Section 807 of such 

8 Act (as amended by section 102(b)(2)) is amended further 

9 by adding at the end the following new subsection: 

10 ‘‘(l) LIABILITY FOR MISUSED AMOUNTS.—

11 ‘‘(1) IN GENERAL.—If the Commissioner of So12 cial Security or a court of competent jurisdiction de13 termines that a representative payee that is not a 

14 Federal, State, or local government agency has mis15 used all or part of a qualified individual’s benefit 

16 that was paid to such representative payee under 

17 this section, the representative payee shall be liable 

18 for the amount misused, and such amount (to the 

19 extent not repaid by the representative payee) shall 

20 be treated as an overpayment of benefits under this 

21 title to the representative payee for all purposes of 

22 this Act and related laws pertaining to the recovery 

23 of such overpayments. Subject to paragraph (2), 

24 upon recovering all or any part of such amount, the 

25 Commissioner shall make payment of an amount 
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1 equal to the recovered amount to such qualified indi2 vidual or such qualified individual’s alternative rep3 resentative payee. 

4 ‘‘(2) LIMITATION.—The total of the amount 

5 paid to such individual or such individual’s alter6 native representative payee under paragraph (1) and 

7 the amount paid under subsection (i) may not ex8 ceed the total benefit amount misused by the rep9 resentative payee with respect to such individual.’’. 

10 (c) TITLE XVI AMENDMENTS.—Section 1631(a)(2) 

11 of such Act (42 U.S.C. 1383(a)(2)) (as amended by sec12 tion 102(b)(3)) is amended further—

13 (1) in subparagraph (G)(i)(II), by striking ‘‘sec14 tion 205(j)(9)’’ and inserting ‘‘section 205(j)(10)’’; 

15 and 

16 (2) by striking subparagraph (H) and inserting 

17 the following: 

18 ‘‘(H)(i) If the Commissioner of Social Security or a 

19 court of competent jurisdiction determines that a rep20 resentative payee that is not a Federal, State, or local gov21 ernment agency has misused all or part of an individual’s 

22 benefit that was paid to the representative payee under 

23 this paragraph, the representative payee shall be liable for 

24 the amount misused, and the amount (to the extent not 

25 repaid by the representative payee) shall be treated as an 
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•HR 743 IH 

1 overpayment of benefits under this title to the representa2 tive payee for all purposes of this Act and related laws 

3 pertaining to the recovery of the overpayments. Subject 

4 to clause (ii), upon recovering all or any part of the 

5 amount, the Commissioner shall make payment of an 

6 amount equal to the recovered amount to such individual 

7 or such individual’s alternative representative payee. 

8 ‘‘(ii) The total of the amount paid to such individual 

9 or such individual’s alternative representative payee under 

10 clause (i) and the amount paid under subparagraph (E) 

11 may not exceed the total benefit amount misused by the 

12 representative payee with respect to such individual.’’. 

13 (d) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to benefit misuse by a representa15 tive payee in any case with respect to which the Commis16 sioner of Social Security or a court of competent jurisdic17 tion makes the determination of misuse after 180 days 

18 after the date of the enactment of this Act. 

19 SEC. 106. AUTHORITY TO REDIRECT DELIVERY OF BENEFIT 

20 PAYMENTS WHEN A REPRESENTATIVE PAYEE 

21 FAILS TO PROVIDE REQUIRED ACCOUNTING. 

22 (a) TITLE II AMENDMENTS.—Section 205(j)(3) of 

23 the Social Security Act (42 U.S.C. 405(j)(3)) (as amend24 ed by sections 102(a)(1)(B) and 105(a)(2)) is amended—
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•HR 743 IH 

1 (1) by redesignating subparagraphs (E) and 

2 (F) as subparagraphs (F) and (G), respectively; and 

3 (2) by inserting after subparagraph (D) the fol4 lowing new subparagraph: 

5 ‘‘(E) In any case in which the person described in 

6 subparagraph (A) or (D) receiving payments on behalf of 

7 another fails to submit a report required by the Commis8 sioner of Social Security under subparagraph (A) or (D), 

9 the Commissioner may, after furnishing notice to such 

10 person and the individual entitled to such payment, re11 quire that such person appear in person at a field office 

12 of the Social Security Administration serving the area in 

13 which the individual resides in order to receive such pay14 ments.’’. 

15 (b) TITLE VIII AMENDMENTS.—Section 807(h) of 

16 such Act (42 U.S.C. 1007(h)) is amended—

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

18 paragraphs (4) and (5), respectively; and 

19 (2) by inserting after paragraph (2) the fol20 lowing new paragraph: 

21 ‘‘(3) AUTHORITY TO REDIRECT DELIVERY OF

22 BENEFIT PAYMENTS WHEN A REPRESENTATIVE

23 PAYEE FAILS TO PROVIDE REQUIRED ACCOUNT24 ING.—In any case in which the person described in 

25 paragraph (1) or (2) receiving benefit payments on 
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•HR 743 IH 

1 behalf of a qualified individual fails to submit a re2 port required by the Commissioner of Social Secu3 rity under paragraph (1) or (2), the Commissioner 

4 may, after furnishing notice to such person and the 

5 qualified individual, require that such person appear 

6 in person at a United States Government facility 

7 designated by the Social Security Administration as 

8 serving the area in which the qualified individual re9 sides in order to receive such benefit payments.’’. 

10 (c) TITLE XVI AMENDMENT.—Section 

11 1631(a)(2)(C) of such Act (42 U.S.C. 1383(a)(2)(C)) is 

12 amended by adding at the end the following new clause: 

13 ‘‘(v) In any case in which the person described in 

14 clause (i) or (iv) receiving payments on behalf of another 

15 fails to submit a report required by the Commissioner of 

16 Social Security under clause (i) or (iv), the Commissioner 

17 may, after furnishing notice to the person and the indi18 vidual entitled to the payment, require that such person 

19 appear in person at a field office of the Social Security 

20 Administration serving the area in which the individual 

21 resides in order to receive such payments.’’. 

22 (d) EFFECTIVE DATE.—The amendment made by 

23 this section shall take effect 180 days after the date of 

24 the enactment of this Act. 
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1 Subtitle B—Enforcement 

2 SEC. 111. CIVIL MONETARY PENALTY AUTHORITY WITH RE3 SPECT TO WRONGFUL CONVERSIONS BY REP4 RESENTATIVE PAYEES. 

5 (a) IN GENERAL.—Section 1129(a) of the Social Se6 curity Act (42 U.S.C. 1320a–8) is amended by adding at 

7 the end the following new paragraph: 

8 ‘‘(3) Any person (including an organization, agency, 

9 or other entity) who, having received, while acting in the 

10 capacity of a representative payee pursuant to section 

11 205(j), 807, or 1631(a)(2), a payment under title II, VIII, 

12 or XVI for the use and benefit of another individual, con13 verts such payment, or any part thereof, to a use that 

14 such person knows or should know is other than for the 

15 use and benefit of such other individual shall be subject 

16 to, in addition to any other penalties that may be pre17 scribed by law, a civil money penalty of not more than 

18 $5,000 for each such conversion. Such person shall also 

19 be subject to an assessment, in lieu of damages sustained 

20 by the United States resulting from the conversion, of not 

21 more than twice the amount of any payments so con22 verted.’’. 

23 (b) EFFECTIVE DATE.—The amendment made by 

24 this section shall apply with respect to violations com25 mitted after the date of the enactment of this Act. 
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1 TITLE II—PROGRAM 

2 PROTECTIONS 

3 SEC. 201. CIVIL MONETARY PENALTY AUTHORITY WITH RE4 SPECT TO KNOWING WITHHOLDING OF MATE5 RIAL FACTS. 

6 (a) TREATMENT OF WITHHOLDING OF MATERIAL

7 FACTS.—

8 (1) CIVIL PENALTIES.—Section 1129(a)(1) of 

9 the Social Security Act (42 U.S.C. 1320a–8(a)(1)) 

10 is amended—

11 (A) by striking ‘‘who’’ in the first sentence 

12 and inserting ‘‘who—’’; 

13 (B) by striking ‘‘makes’’ in the first sen14 tence and all that follows through ‘‘shall be sub15 ject to’’ and inserting the following: 

16 ‘‘(A) makes, or causes to be made, a statement 

17 or representation of a material fact, for use in deter18 mining any initial or continuing right to or the 

19 amount of monthly insurance benefits under title II 

20 or benefits or payments under title VIII or XVI, 

21 that the person knows or should know is false or 

22 misleading, 

23 ‘‘(B) makes such a statement or representation 

24 for such use with knowing disregard for the truth, 

25 or 
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•HR 743 IH 

1 ‘‘(C) omits from a statement or representation 

2 for such use, or otherwise withholds disclosure of, a 

3 fact which the person knows or should know is mate4 rial to the determination of any initial or continuing 

5 right to or the amount of monthly insurance benefits 

6 under title II or benefits or payments under title 

7 VIII or XVI, if the person knows, or should know, 

8 that the statement or representation with such omis9 sion is false or misleading or that the withholding of 

10 such disclosure is misleading, 

11 shall be subject to’’; 

12 (C) by inserting ‘‘or each receipt of such 

13 benefits or payments while withholding disclo14 sure of such fact’’ after ‘‘each such statement 

15 or representation’’ in the first sentence; 

16 (D) by inserting ‘‘or because of such with17 holding of disclosure of a material fact’’ after 

18 ‘‘because of such statement or representation’’ 

19 in the second sentence; and 

20 (E) by inserting ‘‘or such a withholding of 

21 disclosure’’ after ‘‘such a statement or rep22 resentation’’ in the second sentence. 

23 (2) ADMINISTRATIVE PROCEDURE FOR IMPOS24 ING PENALTIES.—Section 1129A(a) of such Act (42 

25 U.S.C. 1320a–8a(a)) is amended—
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•HR 743 IH 

1 (A) by striking ‘‘who’’ the first place it ap2 pears and inserting ‘‘who—’’; and 

3 (B) by striking ‘‘makes’’ and all that fol4 lows through ‘‘shall be subject to,’’ and insert5 ing the following: 

6 ‘‘(1) makes, or causes to be made, a statement 

7 or representation of a material fact, for use in deter8 mining any initial or continuing right to or the 

9 amount of monthly insurance benefits under title II 

10 or benefits or payments under title XVI that the 

11 person knows or should know is false or misleading, 

12 ‘‘(2) makes such a statement or representation 

13 for such use with knowing disregard for the truth, 

14 or 

15 ‘‘(3) omits from a statement or representation 

16 for such use, or otherwise withholds disclosure of, a 

17 fact which the person knows or should know is mate18 rial to the determination of any initial or continuing 

19 right to or the amount of monthly insurance benefits 

20 under title II or benefits or payments under title 

21 XVI, if the person knows, or should know, that the 

22 statement or representation with such omission is 

23 false or misleading or that the withholding of such 

24 disclosure is misleading, 

25 shall be subject to,’’. 
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1 (b) CLARIFICATION OF TREATMENT OF RECOVERED

2 AMOUNTS.—Section 1129(e)(2)(B) of such Act (42 

3 U.S.C. 1320a–8(e)(2)(B)) is amended by striking ‘‘In the 

4 case of amounts recovered arising out of a determination 

5 relating to title VIII or XVI,’’ and inserting ‘‘In the case 

6 of any other amounts recovered under this section,’’. 

7 (c) CONFORMING AMENDMENTS.—

8 (1) Section 1129(b)(3)(A) of such Act (42 

9 U.S.C. 1320a–8(b)(3)(A)) is amended by striking 

10 ‘‘charging fraud or false statements’’. 

11 (2) Section 1129(c)(1) of such Act (42 

12 U.S.C. 1320a–8(c)(1)) is amended by striking ‘‘and 

13 representations’’ and inserting ‘‘, representations, or 

14 actions’’. 

15 (3) Section 1129(e)(1)(A) of such Act (42 

16 U.S.C. 1320a–8(e)(1)(A)) is amended by striking 

17 ‘‘statement or representation referred to in sub18 section (a) was made’’ and inserting ‘‘violation oc19 curred’’. 

20 (d) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply with respect to violations com22 mitted after the date on which the Commissioner imple23 ments the centralized computer file described in section 

24 202. 
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•HR 743 IH 

1 SEC. 202. ISSUANCE BY COMMISSIONER OF SOCIAL SECU2 RITY OF RECEIPTS TO ACKNOWLEDGE SUB3 MISSION OF REPORTS OF CHANGES IN WORK 

4 OR EARNINGS STATUS OF DISABLED BENE5 FICIARIES. 

6 Effective as soon as possible, but not later than 1 

7 year after the date of the enactment of this Act, until such 

8 time as the Commissioner of Social Security implements 

9 a centralized computer file recording the date of the sub10 mission of information by a disabled beneficiary (or rep11 resentative) regarding a change in the beneficiary’s work 

12 or earnings status, the Commissioner shall issue a receipt 

13 to the disabled beneficiary (or representative) each time 

14 he or she submits documentation, or otherwise reports to 

15 the Commissioner, on a change in such status. 

16 SEC. 203. DENIAL OF TITLE II BENEFITS TO PERSONS FLEE17 ING PROSECUTION, CUSTODY, OR CONFINE18 MENT, AND TO PERSONS VIOLATING PROBA19 TION OR PAROLE. 

20 (a) IN GENERAL.—Section 202(x) of the Social Secu21 rity Act (42 U.S.C. 402(x)) is amended—

22 (1) in the heading, by striking ‘‘Prisoners’’ and 

23 all that follows and inserting the following: ‘‘Pris24 oners, Certain Other Inmates of Publicly Funded In25 stitutions, and Fugitives’’; 
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•HR 743 IH 

1 (2) in paragraph (1)(A)(ii)(IV), by striking 

2 ‘‘or’’ at the end; 

3 (3) in paragraph (1)(A)(iii), by striking the pe4 riod at the end and inserting a comma; 

5 (4) by inserting after paragraph (1)(A)(iii) the 

6 following: 

7 ‘‘(iv) is fleeing to avoid prosecution, or custody 

8 or confinement after conviction, under the laws of 

9 the place from which the person flees, for a crime, 

10 or an attempt to commit a crime, which is a felony 

11 under the laws of the place from which the person 

12 flees, or which, in the case of the State of New Jer13 sey, is a high misdemeanor under the laws of such 

14 State, or 

15 ‘‘(v) is violating a condition of probation or pa16 role imposed under Federal or State law. 

17 In the case of an individual from whom such monthly ben18 efits have been withheld pursuant to clause (iv), the Com19 missioner may, for good cause shown, pay such withheld 

20 benefits to the individual.’’; and 

21 (5) in paragraph (3), by adding at the end the 

22 following new subparagraph: 

23 ‘‘(C) Notwithstanding the provisions of section 552a 

24 of title 5, United States Code, or any other provision of 

25 Federal or State law (other than section 6103 of the Inter-
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•HR 743 IH 

1 nal Revenue Code of 1986 and section 1106(c) of this 

2 Act), the Commissioner shall furnish any Federal, State, 

3 or local law enforcement officer, upon the written request 

4 of the officer, with the current address, Social Security 

5 number, and photograph (if applicable) of any beneficiary 

6 under this title, if the officer furnishes the Commissioner 

7 with the name of the beneficiary, and other identifying in8 formation as reasonably required by the Commissioner to 

9 establish the unique identity of the beneficiary, and noti10 fies the Commissioner that—

11 ‘‘(i) the beneficiary—

12 ‘‘(I) is described in clause (iv) or (v) of 

13 paragraph (1)(A); and 

14 ‘‘(II) has information that is necessary for 

15 the officer to conduct the officer’s official du16 ties; and 

17 ‘‘(ii) the location or apprehension of the bene18 ficiary is within the officer’s official duties.’’. 

19 (b) REGULATIONS.—Not later than the first day of 

20 the first month that begins on or after the date that is 

21 9 months after the date of the enactment of this Act, the 

22 Commissioner of Social Security shall promulgate regula23 tions governing payment by the Commissioner, for good 

24 cause shown, of withheld benefits, pursuant to the last
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•HR 743 IH 

1 sentence of section 202(x)(1)(A) of the Social Security Act 

2 (as amended by subsection (a)). 

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

4 subsection (a) shall take effect on the first day of the first 

5 month that begins on or after the date that is 9 months 

6 after the date of the enactment of this Act. 

7 SEC. 204. REQUIREMENTS RELATING TO OFFERS TO PRO8 VIDE FOR A FEE A PRODUCT OR SERVICE 

9 AVAILABLE WITHOUT CHARGE FROM THE SO10 CIAL SECURITY ADMINISTRATION. 

11 (a) IN GENERAL.—Section 1140 of the Social Secu12 rity Act (42 U.S.C. 1320b–10) is amended—

13 (1) in subsection (a), by adding at the end the 

14 following new paragraph: 

15 ‘‘(4)(A) No person shall offer, for a fee, to assist an 

16 individual to obtain a product or service that the person 

17 knows or should know is provided free of charge by the 

18 Social Security Administration unless, at the time the 

19 offer is made, the person provides to the individual to 

20 whom the offer is tendered a notice that—

21 ‘‘(i) explains that the product or service is avail22 able free of charge from the Social Security Admin23 istration, and 

24 ‘‘(ii) complies with standards prescribed by the 

25 Commissioner of Social Security respecting the con-
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•HR 743 IH 

1 tent of such notice and its placement, visibility, and 

2 legibility. 

3 ‘‘(B) Subparagraph (A) shall not apply to any offer—

4 ‘‘(i) to serve as a claimant representative in 

5 connection with a claim arising under title II, title 

6 VIII, or title XVI; or 

7 ‘‘(ii) to prepare, or assist in the preparation of, 

8 an individual’s plan for achieving self-support under 

9 title XVI.’’; and 

10 (2) in the heading, by striking ‘‘PROHIBITION

11 OF MISUSE OF SYMBOLS, EMBLEMS, OR NAMES IN

12 REFERENCE’’ and inserting ‘‘PROHIBITIONS RELAT13 ING TO REFERENCES’’. 

14 (b) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to offers of assistance made after 

16 the sixth month ending after the Commissioner of Social 

17 Security promulgates final regulations prescribing the 

18 standards applicable to the notice required to be provided 

19 in connection with such offer. The Commissioner shall 

20 promulgate such final regulations within 1 year after the 

21 date of the enactment of this Act. 

22 SEC. 205. REFUSAL TO RECOGNIZE CERTAIN INDIVIDUALS 

23 AS CLAIMANT REPRESENTATIVES. 

24 Section 206(a)(1) of the Social Security Act (42 

25 U.S.C. 406(a)(1)) is amended by inserting after the sec-
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1 ond sentence the following: ‘‘Notwithstanding the pre2 ceding sentences, the Commissioner, after due notice and 

3 opportunity for hearing, (A) may refuse to recognize as 

4 a representative, and may disqualify a representative al5 ready recognized, any attorney who has been disbarred or 

6 suspended from any court or bar to which he or she was 

7 previously admitted to practice or who has been disquali8 fied from participating in or appearing before any Federal 

9 program or agency, and (B) may refuse to recognize, and 

10 may disqualify, as a non-attorney representative any attor11 ney who has been disbarred or suspended from any court 

12 or bar to which he or she was previously admitted to prac13 tice. A representative who has been disqualified or sus14 pended pursuant to this section from appearing before the 

15 Social Security Administration as a result of collecting or 

16 receiving a fee in excess of the amount authorized shall 

17 be barred from appearing before the Social Security Ad18 ministration as a representative until full restitution is 

19 made to the claimant and, thereafter, may be considered 

20 for reinstatement only under such rules as the Commis21 sioner may prescribe.’’. 
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1 SEC. 206. PENALTY FOR CORRUPT OR FORCIBLE INTER2 FERENCE WITH ADMINISTRATION OF SOCIAL 

3 SECURITY ACT. 

4 Part A of title XI of the Social Security Act (42 

5 U.S.C. 1301 et seq.) is amended by inserting after section 

6 1129A the following new section: 

7 ‘‘ATTEMPTS TO INTERFERE WITH ADMINISTRATION OF

8 SOCIAL SECURITY ACT

9 ‘‘SEC. 1129B. Whoever corruptly or by force or 

10 threats of force (including any threatening letter or com11 munication) attempts to intimidate or impede any officer, 

12 employee, or contractor of the Social Security Administra13 tion (including any State employee of a disability deter14 mination service or any other individual designated by the 

15 Commissioner of Social Security) acting in an official ca16 pacity to carry out a duty under this Act, or in any other 

17 way corruptly or by force or threats of force (including 

18 any threatening letter or communication) obstructs or im19 pedes, or attempts to obstruct or impede, the due adminis20 tration of this Act, shall be fined not more than $5,000, 

21 imprisoned not more than 3 years, or both, except that 

22 if the offense is committed only by threats of force, the 

23 person shall be fined not more than $3,000, imprisoned 

24 not more than 1 year, or both. In this subsection, the 

25 term ‘threats of force’ means threats of harm to the officer 

26 or employee of the United States or to a contractor of 
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•HR 743 IH 

1 the Social Security Administration, or to a member of the 

2 family of such an officer or employee or contractor.’’. 

3 SEC. 207. USE OF SYMBOLS, EMBLEMS, OR NAMES IN REF4 ERENCE TO SOCIAL SECURITY OR MEDICARE. 

5 (a) IN GENERAL.—Section 1140(a)(1) of the Social 

6 Security Act (42 U.S.C. 1320b–10(a)(1)) is amended—

7 (1) in subparagraph (A), by inserting ‘‘ ‘Cen8 ters for Medicare & Medicaid Services’,’’ after 

9 ‘‘ ‘Health Care Financing Administration’,’’, by 

10 striking ‘‘or ‘Medicaid’, ’’ and inserting ‘‘ ‘Med11 icaid’, ‘Death Benefits Update’, ‘Federal Benefit In12 formation’, ‘Funeral Expenses’, or ‘Final Supple13 mental Plan’,’’ and by inserting ‘‘ ‘CMS’,’’ after 

14 ‘‘ ‘HCFA’,’’; 

15 (2) in subparagraph (B), by inserting ‘‘Centers 

16 for Medicare & Medicaid Services,’’ after ‘‘Health 

17 Care Financing Administration,’’ each place it ap18 pears; and 

19 (3) in the matter following subparagraph (B), 

20 by striking ‘‘the Health Care Financing Administra21 tion,’’ each place it appears and inserting ‘‘the Cen22 ters for Medicare & Medicaid Services,’’. 

23 (b) EFFECTIVE DATE.—The amendments made by 

24 this section shall apply to items sent after 180 days after 

25 the date of the enactment of this Act.
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1 SEC. 208. DISQUALIFICATION FROM PAYMENT DURING 

2 TRIAL WORK PERIOD UPON CONVICTION OF 

3 FRAUDULENT CONCEALMENT OF WORK AC4 TIVITY. 

5 (a) IN GENERAL.—Section 222(c) of the Social Secu6 rity Act (42 U.S.C. 422(c)) is amended by adding at the 

7 end the following new paragraph: 

8 ‘‘(5) Upon conviction by a Federal court that an indi9 vidual has fraudulently concealed work activity during a 

10 period of trial work from the Commissioner of Social Secu11 rity by—

12 ‘‘(A) providing false information to the Com13 missioner of Social Security as to whether the indi14 vidual had earnings in or for a particular period, or 

15 as to the amount thereof; 

16 ‘‘(B) receiving disability insurance benefits 

17 under this title while engaging in work activity 

18 under another identity, including under another so19 cial security account number or a number pur20 porting to be a social security account number; or 

21 ‘‘(C) taking other actions to conceal work activ22 ity with an intent fraudulently to secure payment in 

23 a greater amount than is due or when no payment 

24 is authorized, 

25 no benefit shall be payable to such individual under this 

26 title with respect to a period of disability for any month 
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•HR 743 IH 

1 before such conviction during which the individual ren2 dered services during the period of trial work with respect 

3 to which the fraudulently concealed work activity occurred, 

4 and amounts otherwise due under this title as restitution, 

5 penalties, assessments, fines, or other repayments shall in 

6 all cases be in addition to any amounts for which such 

7 individual is liable as overpayments by reason of such con8 cealment.’’. 

9 (b) EFFECTIVE DATE.—The amendment made by 

10 subsection (a) shall apply with respect to work activity 

11 performed after the date of the enactment of this Act. 

12 SEC. 209. AUTHORITY FOR JUDICIAL ORDERS OF RESTITU13 TION. 

14 (a) AMENDMENTS TO TITLE II.—Section 208 of the 

15 Social Security Act (42 U.S.C. 408) is amended—

16 (1) by redesignating subsections (b), (c), and 

17 (d) as subsections (c), (d), and (e), respectively; and 

18 (2) by inserting after subsection (a) the fol19 lowing new subsection: 

20 ‘‘(b)(1) Any Federal court, when sentencing a defend21 ant convicted of an offense under subsection (a), may 

22 order, in addition to or in lieu of any other penalty author23 ized by law, that the defendant make restitution to the 

24 Social Security Administration. 
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1 ‘‘(2) Sections 3612, 3663, and 3664 of title 18, 

2 United States Code, shall apply with respect to the 

3 issuance and enforcement of orders of restitution under 

4 this subsection. In so applying such sections, the Social 

5 Security Administration shall be considered the victim. 

6 ‘‘(3) If the court does not order restitution, or orders 

7 only partial restitution, under this subsection, the court 

8 shall state on the record the reasons therefor.’’. 

9 (b) AMENDMENTS TO TITLE VIII.—Section 807(i) of 

10 such Act (42 U.S.C. 1007(i)) is amended—

11 (1) by striking ‘‘(i) RESTITUTION.—In any case 

12 where’’ and inserting the following: 

13 ‘‘(i) RESTITUTION.—

14 ‘‘(1) IN GENERAL.—In any case where’’; and

15 (2) by adding at the end the following new 

16 paragraph: 

17 ‘‘(2) COURT ORDER FOR RESTITUTION.—

18 ‘‘(A) IN GENERAL.—Any Federal court, 

19 when sentencing a defendant convicted of an of20 fense under subsection (a), may order, in addi21 tion to or in lieu of any other penalty author22 ized by law, that the defendant make restitution 

23 to the Social Security Administration. 

24 ‘‘(B) RELATED PROVISIONS.—Sections 

25 3612, 3663, and 3664 of title 18, United States 
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1 Code, shall apply with respect to the issuance 

2 and enforcement of orders of restitution under 

3 this paragraph. In so applying such sections, 

4 the Social Security Administration shall be con5 sidered the victim. 

6 ‘‘(C) STATED REASONS FOR NOT ORDER7 ING RESTITUTION.—If the court does not order 

8 restitution, or orders only partial restitution, 

9 under this paragraph, the court shall state on 

10 the record the reasons therefor.’’. 

11 (c) AMENDMENTS TO TITLE XVI.—Section 1632 of 

12 such Act (42 U.S.C. 1383a) is amended—

13 (1) by redesignating subsection (b) as sub14 section (c); and 

15 (2) by inserting after subsection (a) the fol16 lowing new subsection: 

17 ‘‘(b)(1) Any Federal court, when sentencing a defend18 ant convicted of an offense under subsection (a), may 

19 order, in addition to or in lieu of any other penalty author20 ized by law, that the defendant make restitution to the 

21 Social Security Administration. 

22 ‘‘(2) Sections 3612, 3663, and 3664 of title 18, 

23 United States Code, shall apply with respect to the 

24 issuance and enforcement of orders of restitution under 
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•HR 743 IH 

1 this subsection. In so applying such sections, the Social 

2 Security Administration shall be considered the victim. 

3 ‘‘(3) If the court does not order restitution, or orders 

4 only partial restitution, under this subsection, the court 

5 shall state on the record the reasons therefor.’’. 

6 (d) SPECIAL ACCOUNT FOR RECEIPT OF RESTITU7 TION PAYMENTS.—Section 704(b) of such Act (42 U.S.C. 

8 904(b)) is amended by adding at the end the following 

9 new paragraph: 

10 ‘‘(3)(A) Except as provided in subparagraph (B), 

11 amounts received by the Social Security Administration 

12 pursuant to an order of restitution under section 208(b), 

13 807(i), or 1632(b) shall be credited to a special fund es14 tablished in the Treasury of the United States for 

15 amounts so received or recovered. The amounts so cred16 ited, to the extent and in the amounts provided in advance 

17 in appropriations Acts, shall be available to defray ex18 penses incurred in carrying out titles II, VIII, and XVI. 

19 ‘‘(B) Subparagraph (A) shall not apply with respect 

20 to amounts received in connection with misuse by a rep21 resentative payee (within the meaning of sections 205(j), 

22 807, and 1631(a)(2)) of funds paid as benefits under title 

23 II, VIII, or XVI. Such amounts received in connection 

24 with misuse of funds paid as benefits under title II shall 

25 be transferred to the Managing Trustee of the Federal
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•HR 743 IH 

1 Old-Age and Survivors Insurance Trust Fund or the Fed2 eral Disability Insurance Trust Fund, as determined ap3 propriate by the Commissioner of Social Security, and 

4 such amounts shall be deposited by the Managing Trustee 

5 into such Trust Fund. All other such amounts shall be 

6 deposited by the Commissioner into the general fund of 

7 the Treasury as miscellaneous receipts.’’. 

8 (e) EFFECTIVE DATE.—The amendments made by 

9 subsections (a) and (b) shall apply with respect to viola10 tions occurring on or after the date of the enactment of 

11 this Act. 

12 TITLE III—ATTORNEY FEE PAY13 MENT SYSTEM IMPROVE14 MENTS 

15 SEC. 301. CAP ON ATTORNEY ASSESSMENTS. 

16 (a) IN GENERAL.—Section 206(d)(2)(A) of the Social 

17 Security Act (42 U.S.C. 406(d)(2)(A)) is amended—

18 (1) by inserting ‘‘, except that the maximum 

19 amount of the assessment may not exceed the great20 er of $75 or the adjusted amount as provided pursu21 ant to the following two sentences’’ after ‘‘subpara22 graph (B)’’; and 

23 (2) by adding at the end the following new sen24 tence: ‘‘In the case of any calendar year beginning 

25 after the date of the enactment of the Social Secu-
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1 rity Program Protection Act of 2003, the dollar 

2 amount specified in the preceding sentence (includ3 ing a previously adjusted amount) shall be adjusted 

4 annually under the procedures used to adjust benefit 

5 amounts under section 215(i)(2)(A)(ii), except such 

6 adjustment shall be based on the higher of $75 or 

7 the previously adjusted amount that would have 

8 been in effect for December of the preceding year, 

9 but for the rounding of such amount pursuant to the 

10 following sentence. Any amount so adjusted that is 

11 not a multiple of $10 shall be rounded to the next 

12 lowest multiple of $10, but in no case less than 

13 $75.’’. 

14 (b) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply with respect to fees for representa16 tion of claimants which are first required to be certified 

17 or paid under section 206 of the Social Security Act on 

18 or after the first day of the first month that begins after 

19 180 days after the date of the enactment of this Act. 

20 SEC. 302. EXTENSION OF ATTORNEY FEE PAYMENT SYSTEM 

21 TO TITLE XVI CLAIMS. 

22 (a) IN GENERAL.—Section 1631(d)(2) of the Social 

23 Security Act (42 U.S.C. 1383(d)(2)) is amended—

24 (1) in subparagraph (A), in the matter pre25 ceding clause (i)—
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1 (A) by striking ‘‘section 206(a)’’ and in2 serting ‘‘section 206’’; 

3 (B) by striking ‘‘(other than paragraph (4) 

4 thereof)’’ and inserting ‘‘(other than sub5 sections (a)(4) and (d) thereof)’’; and 

6 (C) by striking ‘‘paragraph (2) thereof’’ 

7 and inserting ‘‘such section’’; 

8 (2) in subparagraph (A)(i), by striking ‘‘in sub9 paragraphs (A)(ii)(I) and (C)(i),’’ and inserting ‘‘in 

10 subparagraphs (A)(ii)(I) and (D)(i) of subsection 

11 (a)(2)’’, and by striking ‘‘and’’ at the end; 

12 (3) by striking subparagraph (A)(ii) and insert13 ing the following: 

14 ‘‘(ii) by substituting, in subsections (a)(2)(B) 

15 and (b)(1)(B)(i), the phrase ‘section 1631(a)(7)(A) 

16 or the requirements of due process of law’ for the 

17 phrase ‘subsection (g) or (h) of section 223’; 

18 ‘‘(iii) by substituting, in subsection (a)(2)(C)(i), 

19 the phrase ‘under title II’ for the phrase ‘under title 

20 XVI’; 

21 ‘‘(iv) by substituting, in subsection (b)(1)(A), 

22 the phrase ‘pay the amount of such fee’ for the 

23 phrase ‘certify the amount of such fee for payment’ 

24 and by striking, in subsection (b)(1)(A), the phrase 

25 ‘or certified for payment’; and 
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1 ‘‘(v) by substituting, in subsection (b)(1)(B)(ii), 

2 the phrase ‘deemed to be such amounts as deter3 mined before any applicable reduction under section 

4 1631(g), and reduced by the amount of any reduc5 tion in benefits under this title or title II made pur6 suant to section 1127(a)’ for the phrase ‘determined 

7 before any applicable reduction under section 

8 1127(a))’.’’; and 

9 (4) by striking subparagraph (B) and inserting 

10 the following new subparagraphs: 

11 ‘‘(B) Subject to subparagraph (C), if the claimant is 

12 determined to be entitled to past-due benefits under this 

13 title and the person representing the claimant is an attor14 ney, the Commissioner of Social Security shall pay out of 

15 such past-due benefits to such attorney an amount equal 

16 to the lesser of—

17 ‘‘(i) so much of the maximum fee as does not 

18 exceed 25 percent of such past-due benefits (as de19 termined before any applicable reduction under sec20 tion 1631(g) and reduced by the amount of any re21 duction in benefits under this title or title II pursu22 ant to section 1127(a)), or 

23 ‘‘(ii) the amount of past-due benefits available 

24 after any applicable reductions under sections 

25 1631(g) and 1127(a). 
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1 ‘‘(C)(i) Whenever a fee for services is required to be 

2 paid to an attorney from a claimant’s past-due benefits 

3 pursuant to subparagraph (B), the Commissioner shall 

4 impose on the attorney an assessment calculated in ac5 cordance with clause (ii). 

6 ‘‘(ii)(I) The amount of an assessment under clause 

7 (i) shall be equal to the product obtained by multiplying 

8 the amount of the representative’s fee that would be re9 quired to be paid by subparagraph (B) before the applica10 tion of this subparagraph, by the percentage specified in 

11 subclause (II), except that the maximum amount of the 

12 assessment may not exceed $75. In the case of any cal13 endar year beginning after the date of the enactment of 

14 the Social Security Program Protection Act of 2003, the 

15 dollar amount specified in the preceding sentence (includ16 ing a previously adjusted amount) shall be adjusted annu17 ally under the procedures used to adjust benefit amounts 

18 under section 215(i)(2)(A)(ii), except such adjustment 

19 shall be based on the higher of $75 or the previously ad20 justed amount that would have been in effect for Decem21 ber of the preceding year, but for the rounding of such 

22 amount pursuant to the following sentence. Any amount 

23 so adjusted that is not a multiple of $10 shall be rounded 

24 to the next lowest multiple of $10, but in no case less 

25 than $75.
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1 ‘‘(II) The percentage specified in this subclause is 

2 such percentage rate as the Commissioner determines is 

3 necessary in order to achieve full recovery of the costs of 

4 determining and approving fees to attorneys from the 

5 past-due benefits of claimants, but not in excess of 6.3 

6 percent. 

7 ‘‘(iii) The Commissioner may collect the assessment 

8 imposed on an attorney under clause (i) by offset from 

9 the amount of the fee otherwise required by subparagraph 

10 (B) to be paid to the attorney from a claimant’s past-due 

11 benefits. 

12 ‘‘(iv) An attorney subject to an assessment under 

13 clause (i) may not, directly or indirectly, request or other14 wise obtain reimbursement for such assessment from the 

15 claimant whose claim gave rise to the assessment. 

16 ‘‘(v) Assessments on attorneys collected under this 

17 subparagraph shall be deposited in the Treasury in a sepa18 rate fund created for this purpose. 

19 ‘‘(vi) The assessments authorized under this subpara20 graph shall be collected and available for obligation only 

21 to the extent and in the amount provided in advance in 

22 appropriations Acts. Amounts so appropriated are au23 thorized to remain available until expended, for adminis24 trative expenses in carrying out this title and related 

25 laws.’’. 
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1 (b) EFFECTIVE DATE.—

2 (1) IN GENERAL.—The amendments made by 

3 this section shall apply with respect to fees for rep4 resentation of claimants which are first required to 

5 be certified or paid under section 1631(d)(2) of the 

6 Social Security Act on or after the first day of the 

7 first month that begins after 270 days after the date 

8 of the enactment of this Act. 

9 (2) SUNSET.—Such amendments shall not 

10 apply with respect to fees for representation of 

11 claimants in the case of any claim for benefits with 

12 respect to which the agreement for representation is 

13 entered into after 3 years after the date of the en14 actment of this Act. 

15 (c) STUDY REGARDING FEE-WITHHOLDING FOR

16 NON-ATTORNEY REPRESENTATIVES.—

17 (1) STUDY.—As soon as practicable after the 

18 date of the enactment of this Act, the Comptroller 

19 General of the United States shall undertake a study 

20 regarding fee-withholding for non-attorney rep21 resentatives representing claimants before the Social 

22 Security Administration. 

23 (2) MATTERS TO BE STUDIED.—In conducting 

24 the study under this subsection, the Comptroller 

25 General shall—
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•HR 743 IH 

1 (A) compare the non-attorney representa2 tives who seek fee approval for representing 

3 claimants before the Social Security Adminis4 tration to attorney representatives who seek 

5 such fee approval, with regard to—

6 (i) their training, qualifications, and 

7 competency, 

8 (ii) the type and quality of services 

9 provided, and 

10 (iii) the extent to which claimants are 

11 protected through oversight of such rep12 resentatives by the Social Security Admin13 istration or other organizations, and 

14 (B) consider the potential results of ex15 tending to non-attorney representatives the fee 

16 withholding procedures that apply under titles 

17 II and XVI of the Social Security Act for the 

18 payment of attorney fees, including the effect 

19 on claimants and program administration. 

20 (3) REPORT.—Not later than 1 year after the 

21 date of the enactment of this Act, the Comptroller 

22 General shall submit to the Committee on Ways and 

23 Means of the House of Representatives and the 

24 Committee on Finance of the Senate a report detail-
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•HR 743 IH 

1 ing the results of the Comptroller General’s study 

2 conducted pursuant to this subsection. 

3 TITLE IV—MISCELLANEOUS AND 

4 TECHNICAL AMENDMENTS 

5 Subtitle A—Amendments Relating 

6 to the Ticket to Work and Work 

7 Incentives Improvement Act of 

8 1999

9 SEC. 401. APPLICATION OF DEMONSTRATION AUTHORITY 

10 SUNSET DATE TO NEW PROJECTS. 

11 Section 234 of the Social Security Act (42 

12 U.S.C. 434) is amended—

13 (1) in the first sentence of subsection (c), by 

14 striking ‘‘conducted under subsection (a)’’ and in15 serting ‘‘initiated under subsection (a) on or before 

16 December 17, 2004’’; and 

17 (2) in subsection (d)(2), by amending the first 

18 sentence to read as follows: ‘‘The authority to ini19 tiate projects under the preceding provisions of this 

20 section shall terminate on December 18, 2004.’’.
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1 SEC. 402. EXPANSION OF WAIVER AUTHORITY AVAILABLE 

2 IN CONNECTION WITH DEMONSTRATION 

3 PROJECTS PROVIDING FOR REDUCTIONS IN 

4 DISABILITY INSURANCE BENEFITS BASED ON 

5 EARNINGS. 

6 Section 302(c) of the Ticket to Work and Work In7 centives Improvement Act of 1999 (42 U.S.C. 434 note) 

8 is amended by striking ‘‘(42 U.S.C. 401 et seq.),’’ and 

9 inserting ‘‘(42 U.S.C. 401 et seq.) and the requirements 

10 of section 1148 of such Act (42 U.S.C. 1320b–19) as they 

11 relate to the program established under title II of such 

12 Act,’’. 

13 SEC. 403. FUNDING OF DEMONSTRATION PROJECTS PRO14 VIDED FOR REDUCTIONS IN DISABILITY IN15 SURANCE BENEFITS BASED ON EARNINGS. 

16 Section 302(f) of the Ticket to Work and Work In17 centives Improvement Act of 1999 (42 U.S.C. 434 note) 

18 is amended to read as follows: 

19 ‘‘(f) EXPENDITURES.—Administrative expenses for 

20 demonstration projects under this section shall be paid 

21 from funds available for the administration of title II or 

22 XVIII of the Social Security Act, as appropriate. Benefits 

23 payable to or on behalf of individuals by reason of partici24 pation in projects under this section shall be made from 

25 the Federal Disability Insurance Trust Fund and the Fed26 eral Old-Age and Survivors Insurance Trust Fund, as de-
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1 termined appropriate by the Commissioner of Social Secu2 rity, and from the Federal Hospital Insurance Trust Fund 

3 and the Federal Supplementary Medical Insurance Trust 

4 Fund, as determined appropriate by the Secretary of 

5 Health and Human Services, from funds available for ben6 efits under such title II or XVIII.’’. 

7 SEC. 404. AVAILABILITY OF FEDERAL AND STATE WORK IN8 CENTIVE SERVICES TO ADDITIONAL INDIVID9 UALS. 

10 (a) FEDERAL WORK INCENTIVES OUTREACH PRO11 GRAM.—

12 (1) IN GENERAL.—Section 1149(c)(2) of the 

13 Social Security Act (42 U.S.C. 1320b–20(c)(2)) is 

14 amended to read as follows: 

15 ‘‘(2) DISABLED BENEFICIARY.—The term ‘dis16 abled beneficiary’ means an individual—

17 ‘‘(A) who is a disabled beneficiary as de18 fined in section 1148(k)(2) of this Act; 

19 ‘‘(B) who is receiving a cash payment de20 scribed in section 1616(a) of this Act or a sup21 plementary payment described in section 

22 212(a)(3) of Public Law 93–66 (without regard 

23 to whether such payment is paid by the Com24 missioner pursuant to an agreement under sec-
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1 tion 1616(a) of this Act or under section 

2 212(b) of Public Law 93–66); 

3 ‘‘(C) who, pursuant to section 1619(b) of 

4 this Act, is considered to be receiving benefits 

5 under title XVI of this Act; or 

6 ‘‘(D) who is entitled to benefits under part 

7 A of title XVIII of this Act by reason of the pe8 nultimate sentence of section 226(b) of this 

9 Act.’’. 

10 (2) EFFECTIVE DATE.—The amendment made 

11 by this subsection shall apply with respect to grants, 

12 cooperative agreements, or contracts entered into on 

13 or after the date of the enactment of this Act. 

14 (b) STATE GRANTS FOR WORK INCENTIVES ASSIST15 ANCE.—

16 (1) DEFINITION OF DISABLED BENEFICIARY.—

17 Section 1150(g)(2) of such Act (42 U.S.C. 1320b–

18 21(g)(2)) is amended to read as follows: 

19 ‘‘(2) DISABLED BENEFICIARY.—The term ‘dis20 abled beneficiary’ means an individual—

21 ‘‘(A) who is a disabled beneficiary as de22 fined in section 1148(k)(2) of this Act; 

23 ‘‘(B) who is receiving a cash payment de24 scribed in section 1616(a) of this Act or a sup25 plementary payment described in section 
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1 212(a)(3) of Public Law 93–66 (without regard 

2 to whether such payment is paid by the Com3 missioner pursuant to an agreement under sec4 tion 1616(a) of this Act or under section 

5 212(b) of Public Law 93–66); 

6 ‘‘(C) who, pursuant to section 1619(b) of 

7 this Act, is considered to be receiving benefits 

8 under title XVI of this Act; or 

9 ‘‘(D) who is entitled to benefits under part 

10 A of title XVIII of this Act by reason of the pe11 nultimate sentence of section 226(b) of this 

12 Act.’’. 

13 (2) ADVOCACY OR OTHER SERVICES NEEDED

14 TO MAINTAIN GAINFUL EMPLOYMENT.—Section 

15 1150(b)(2) of such Act (42 U.S.C. 1320b–21(b)(2)) 

16 is amended by striking ‘‘secure or regain’’ and in17 serting ‘‘secure, maintain, or regain’’. 

18 (3) EFFECTIVE DATE.—The amendments made 

19 by this subsection shall apply with respect to pay20 ments provided after the date of the enactment of 

21 this Act.
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1 SEC. 405. TECHNICAL AMENDMENT CLARIFYING TREAT2 MENT FOR CERTAIN PURPOSES OF INDI3 VIDUAL WORK PLANS UNDER THE TICKET TO 

4 WORK AND SELF-SUFFICIENCY PROGRAM. 

5 (a) IN GENERAL.—Section 1148(g)(1) of the Social 

6 Security Act (42 U.S.C. 1320b–19) is amended by adding 

7 at the end, after and below subparagraph (E), the fol8 lowing new sentence: 

9 ‘‘An individual work plan established pursuant to 

10 this subsection shall be treated, for purposes of sec11 tion 51(d)(6)(B)(i) of the Internal Revenue Code of 

12 1986, as an individualized written plan for employ13 ment under a State plan for vocational rehabilitation 

14 services approved under the Rehabilitation Act of 

15 1973.’’. 

16 (b) EFFECTIVE DATE.—The amendment made by 

17 subsection (a) shall take effect as if included in section 

18 505 of the Ticket to Work and Work Incentives Improve19 ment Act of 1999 (Public Law 106–170; 113 Stat. 1921). 

20 Subtitle B—Miscellaneous 

21 Amendments 

22 SEC. 411. ELIMINATION OF TRANSCRIPT REQUIREMENT IN 

23 REMAND CASES FULLY FAVORABLE TO THE 

24 CLAIMANT. 

25 (a) IN GENERAL.—Section 205(g) of the Social Secu26 rity Act (42 U.S.C. 405(g)) is amended in the sixth sen-
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•HR 743 IH 

1 tence by striking ‘‘and a transcript’’ and inserting ‘‘and, 

2 in any case in which the Commissioner has not made a 

3 decision fully favorable to the individual, a transcript’’. 

4 (b) EFFECTIVE DATE.—The amendment made by 

5 this section shall apply with respect to final determina6 tions issued (upon remand) on or after the date of the 

7 enactment of this Act. 

8 SEC. 412. NONPAYMENT OF BENEFITS UPON REMOVAL 

9 FROM THE UNITED STATES. 

10 (a) IN GENERAL.—Paragraphs (1) and (2) of section 

11 202(n) of the Social Security Act (42 U.S.C. 402(n)(1), 

12 (2)) are each amended by striking ‘‘or (1)(E)’’. 

13 (b) EFFECTIVE DATE.—The amendment made by 

14 this section to section 202(n)(1) of the Social Security Act 

15 shall apply to individuals with respect to whom the Com16 missioner of Social Security receives a removal notice from 

17 the Attorney General after the date of the enactment of 

18 this Act. The amendment made by this section to section 

19 202(n)(2) of the Social Security Act shall apply with re20 spect to removals occurring after the date of the enact21 ment of this Act. 

22 SEC. 413. REINSTATEMENT OF CERTAIN REPORTING RE23 QUIREMENTS. 

24 Section 3003(a)(1) of the Federal Reports Elimi25 nation and Sunset Act of 1995 (31 U.S.C. 1113 note) 
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1 shall not apply to any report required to be submitted 

2 under any of the following provisions of law: 

3 (1)(A) Section 201(c)(2) of the Social Security 

4 Act (42 U.S.C. 401(c)(2)). 

5 (B) Section 1817(b)(2) of the Social Security 

6 Act (42 U.S.C. 1395i(b)(2)). 

7 (C) Section 1841(b)(2) of the Social Security 

8 Act (42 U.S.C. 1395t(b)(2)). 

9 (2)(A) Section 221(c)(3)(C) of the Social Secu10 rity Act (42 U.S.C. 421(c)(3)(C)). 

11 (B) Section 221(i)(3) of the Social Security Act 

12 (42 U.S.C. 421(i)(3)). 

13 SEC. 414. CLARIFICATION OF DEFINITIONS REGARDING 

14 CERTAIN SURVIVOR BENEFITS. 

15 (a) WIDOWS.—Section 216(c) of the Social Security 

16 Act (42 U.S.C. 416(c)) is amended—

17 (1) by redesignating subclauses (A) through (C) 

18 of clause (6) as subclauses (i) through (iii), respec19 tively; 

20 (2) by redesignating clauses (1) through (6) as 

21 clauses (A) through (F), respectively; 

22 (3) in clause (E) (as redesignated), by inserting 

23 ‘‘except as provided in paragraph (2),’’ before ‘‘she 

24 was married’’; 

25 (4) by inserting ‘‘(1)’’ after ‘‘(c)’’; and 
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1 (5) by adding at the end the following new 

2 paragraph: 

3 ‘‘(2) The requirements of paragraph (1)(E) in con4 nection with the surviving wife of an individual shall be 

5 treated as satisfied if—

6 ‘‘(A) the individual had been married prior to 

7 the individual’s marriage to the surviving wife, 

8 ‘‘(B) the prior wife was institutionalized during 

9 the individual’s marriage to the prior wife due to 

10 mental incompetence or similar incapacity, 

11 ‘‘(C) during the period of the prior wife’s insti12 tutionalization, the individual would have divorced 

13 the prior wife and married the surviving wife, but 

14 the individual did not do so because such divorce 

15 would have been unlawful, by reason of the prior 

16 wife’s institutionalization, under the laws of the 

17 State in which the individual was domiciled at the 

18 time (as determined based on evidence satisfactory 

19 to the Commissioner of Social Security), 

20 ‘‘(D) the prior wife continued to remain institu21 tionalized up to the time of her death, and 

22 ‘‘(E) the individual married the surviving wife 

23 within 60 days after the prior wife’s death.’’. 

24 (b) WIDOWERS.—Section 216(g) of such Act (42 

25 U.S.C. 416(g)) is amended—
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1 (1) by redesignating subclauses (A) through (C) 

2 of clause (6) as subclauses (i) through (iii), respec3 tively; 

4 (2) by redesignating clauses (1) through (6) as 

5 clauses (A) through (F), respectively; 

6 (3) in clause (E) (as redesignated), by inserting 

7 ‘‘except as provided in paragraph (2),’’ before ‘‘he 

8 was married’’; 

9 (4) by inserting ‘‘(1)’’ after ‘‘(g)’’; and 

10 (5) by adding at the end the following new 

11 paragraph: 

12 ‘‘(2) The requirements of paragraph (1)(E) in con13 nection with the surviving husband of an individual shall 

14 be treated as satisfied if—

15 ‘‘(A) the individual had been married prior to 

16 the individual’s marriage to the surviving husband, 

17 ‘‘(B) the prior husband was institutionalized 

18 during the individual’s marriage to the prior hus19 band due to mental incompetence or similar inca20 pacity, 

21 ‘‘(C) during the period of the prior husband’s 

22 institutionalization, the individual would have di23 vorced the prior husband and married the surviving 

24 husband, but the individual did not do so because 

25 such divorce would have been unlawful, by reason of 
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1 the prior husband’s institutionalization, under the 

2 laws of the State in which the individual was domi3 ciled at the time (as determined based on evidence 

4 satisfactory to the Commissioner of Social Security), 

5 ‘‘(D) the prior husband continued to remain in6 stitutionalized up to the time of his death, and 

7 ‘‘(E) the individual married the surviving hus8 band within 60 days after the prior husband’s 

9 death.’’. 

10 (c) CONFORMING AMENDMENT.—Section 216(k) of 

11 such Act (42 U.S.C. 416(k)) is amended by striking 

12 ‘‘clause (5) of subsection (c) or clause (5) of subsection 

13 (g)’’ and inserting ‘‘clause (E) of subsection (c)(1) or 

14 clause (E) of subsection (g)(1)’’. 

15 (d) EFFECTIVE DATE.—The amendments made by 

16 this section shall be effective with respect to applications 

17 for benefits under title II of the Social Security Act filed 

18 during months ending after the date of the enactment of 

19 this Act. 
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1 SEC. 415. CLARIFICATION RESPECTING THE FICA AND 

2 SECA TAX EXEMPTIONS FOR AN INDIVIDUAL 

3 WHOSE EARNINGS ARE SUBJECT TO THE 

4 LAWS OF A TOTALIZATION AGREEMENT 

5 PARTNER. 

6 Sections 1401(c), 3101(c), and 3111(c) of the Inter7 nal Revenue Code of 1986 are each amended by striking 

8 ‘‘to taxes or contributions for similar purposes under’’ and 

9 inserting ‘‘exclusively to the laws applicable to’’. 

10 SEC. 416. COVERAGE UNDER DIVIDED RETIREMENT SYS11 TEM FOR PUBLIC EMPLOYEES IN KENTUCKY. 

12 (a) IN GENERAL.—Section 218(d)(6)(C) of the Social 

13 Security Act (42 U.S.C. 418(d)(6)(C)) is amended by in14 serting ‘‘Kentucky,’’ after ‘‘Illinois,’’. 

15 (b) EFFECTIVE DATE.—The amendment made by 

16 subsection (a) takes effect on January 1, 2003. 

17 SEC. 417. COMPENSATION FOR THE SOCIAL SECURITY AD18 VISORY BOARD. 

19 (a) IN GENERAL.—Subsection (f) of section 703 of 

20 the Social Security Act (42 U.S.C. 903(f)) is amended to 

21 read as follows: 

22 ‘‘Compensation, Expenses, and Per Diem 

23 ‘‘(f) A member of the Board shall, for each day (in24 cluding traveltime) during which the member is attending 

25 meetings or conferences of the Board or otherwise engaged 

26 in the business of the Board, be compensated at the daily 
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1 rate of basic pay for level IV of the Executive Schedule 

2 for each day during which the member is engaged in per3 forming a function of the Board. While serving on busi4 ness of the Board away from their homes or regular places 

5 of business, members may be allowed travel expenses, in6 cluding per diem in lieu of subsistence, as authorized by 

7 section 5703 of title 5, United States Code, for persons 

8 in the Government employed intermittently.’’. 

9 (b) EFFECTIVE DATE.—The amendment made by 

10 this section shall be effective as of January 1, 2003. 

11 SEC. 418. 60-MONTH PERIOD OF EMPLOYMENT REQUIRE12 MENT FOR APPLICATION OF GOVERNMENT 

13 PENSION OFFSET EXEMPTION. 

14 (a) WIFE’S INSURANCE BENEFITS.—Section 

15 202(b)(4)(A) of the Social Security Act (42 U.S.C. 

16 402(b)(4)(A)) is amended by striking ‘‘if, on the last day 

17 she was employed by such entity’’ and inserting ‘‘if, 

18 throughout the period beginning with the period of 60 cal19 endar months preceding the last day she was employed 

20 by such entity and ending with such last day’’. 

21 (b) HUSBAND’S INSURANCE BENEFITS.—Section 

22 202(c)(2)(A) of such Act (42 U.S.C. 402(c)(2)(A)) is 

23 amended by striking ‘‘if, on the last day he was employed 

24 by such entity’’ and inserting ‘‘if, throughout the period 

25 beginning with the period of 60 calendar months preceding 
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1 the last day he was employed by such entity and ending 

2 with such last day’’. 

3 (c) WIDOW’S INSURANCE BENEFITS.—Section 

4 202(e)(7)(A) of such Act (42 U.S.C. 402(e)(7)(A)) is 

5 amended by striking ‘‘if, on the last day she was employed 

6 by such entity’’ and inserting ‘‘if, throughout the period 

7 beginning with the period of 60 calendar months preceding 

8 the last day she was employed by such entity and ending 

9 with such last day’’. 

10 (d) WIDOWER’S INSURANCE BENEFITS.—Section 

11 202(f)(2)(A) of such Act (42 U.S.C. 402(f)(2)(A)) is 

12 amended by striking ‘‘if, on the last day he was employed 

13 by such entity’’ and inserting ‘‘if, throughout the period 

14 beginning with the period of 60 calendar months preceding 

15 the last day he was employed by such entity and ending 

16 with such last day’’. 

17 (e) MOTHER’S AND FATHER’S INSURANCE BENE18 FITS.—Section 202(g)(4)(A) of the such Act (42 U.S.C. 

19 402(g)(4)(A)) is amended by striking ‘‘if, on the last day 

20 the individual was employed by such entity’’ and inserting 

21 ‘‘if, throughout the period beginning with the period of 

22 60 calendar months preceding the last day the individual 

23 was employed by such entity and ending with such last 

24 day’’. 
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1 (f) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply with respect to applications for 

3 benefits under title II of the Social Security Act filed on 

4 or after the first day of the first month that begins after 

5 the date of the enactment of this Act, except that such 

6 amendments shall not apply in connection with monthly 

7 periodic benefits of any individual based on earnings while 

8 in service described in section 202(b)(4)(A), 202(c)(2)(A), 

9 202(e)(7)(A), or 202(f)(2)(A) of the Social Security Act 

10 (in the matter preceding clause (i) thereof)—

11 (1) if the last day of such service occurs before 

12 the end of the 90-day period following the date of 

13 the enactment of this Act, or 

14 (2) in any case in which the last day of such 

15 service occurs after the end of such 90-day period, 

16 such individual performed such service during such 

17 90-day period which constituted ‘‘employment’’ as 

18 defined in section 210 of such Act, and all such 

19 service subsequently performed by such individual 

20 has constituted such ‘‘employment’’.

21 Subtitle C—Technical Amendments 

22 SEC. 421. TECHNICAL CORRECTION RELATING TO RESPON23 SIBLE AGENCY HEAD. 

24 Section 1143 of the Social Security Act (42 

25 U.S.C. 1320b–13) is amended—
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1 (1) by striking ‘‘Secretary’’ the first place it ap2 pears and inserting ‘‘Commissioner of Social Secu3 rity’’; and 

4 (2) by striking ‘‘Secretary’’ each subsequent 

5 place it appears and inserting ‘‘Commissioner’’. 

6 SEC. 422. TECHNICAL CORRECTION RELATING TO RETIRE7 MENT BENEFITS OF MINISTERS. 

8 (a) IN GENERAL.—Section 211(a)(7) of the Social 

9 Security Act (42 U.S.C. 411(a)(7)) is amended by insert10 ing ‘‘, but shall not include in any such net earnings from 

11 self-employment the rental value of any parsonage or any 

12 parsonage allowance (whether or not excluded under sec13 tion 107 of the Internal Revenue Code of 1986) provided 

14 after the individual retires, or any other retirement benefit 

15 received by such individual from a church plan (as defined 

16 in section 414(e) of such Code) after the individual re17 tires’’ before the semicolon. 

18 (b) EFFECTIVE DATE.—The amendment made by 

19 this section shall apply to years beginning before, on, or 

20 after December 31, 1994. 

21 SEC. 423. TECHNICAL CORRECTIONS RELATING TO DOMES22 TIC EMPLOYMENT. 

23 (a) AMENDMENT TO INTERNAL REVENUE CODE.—

24 Section 3121(a)(7)(B) of the Internal Revenue Code of 
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1 1986 is amended by striking ‘‘described in subsection 

2 (g)(5)’’ and inserting ‘‘on a farm operated for profit’’. 

3 (b) AMENDMENT TO SOCIAL SECURITY ACT.—Sec4 tion 209(a)(6)(B) of the Social Security Act (42 

5 U.S.C. 409(a)(6)(B)) is amended by striking ‘‘described 

6 in section 210(f)(5)’’ and inserting ‘‘on a farm operated 

7 for profit’’. 

8 (c) CONFORMING AMENDMENT.—Section 3121(g)(5) 

9 of such Code and section 210(f)(5) of such Act (42 

10 U.S.C. 410(f)(5)) are amended by striking ‘‘or is domes11 tic service in a private home of the employer’’. 

12 SEC. 424. TECHNICAL CORRECTIONS OF OUTDATED REF13 ERENCES. 

14 (a) CORRECTION OF TERMINOLOGY AND CITATIONS

15 RESPECTING REMOVAL FROM THE UNITED STATES.—

16 Section 202(n) of the Social Security Act (42 

17 U.S.C. 402(n)) (as amended by section 412) is amended 

18 further—

19 (1) by striking ‘‘deportation’’ each place it ap20 pears and inserting ‘‘removal’’; 

21 (2) by striking ‘‘deported’’ each place it appears 

22 and inserting ‘‘removed’’; 

23 (3) in paragraph (1) (in the matter preceding 

24 subparagraph (A)), by striking ‘‘under section 

25 241(a) (other than under paragraph (1)(C) there-
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1 of)’’ and inserting ‘‘under section 237(a) (other than 

2 paragraph (1)(C) thereof) or 212(a)(6)(A)’’; 

3 (4) in paragraph (2), by striking ‘‘under any of 

4 the paragraphs of section 241(a) of the Immigration 

5 and Nationality Act (other than under paragraph 

6 (1)(C) thereof)’’ and inserting ‘‘under any of the 

7 paragraphs of section 237(a) of the Immigration and 

8 Nationality Act (other than paragraph (1)(C) there9 of) or under section 212(a)(6)(A) of such Act’’; 

10 (5) in paragraph (3)—

11 (A) by striking ‘‘paragraph (19) of section 

12 241(a)’’ and inserting ‘‘subparagraph (D) of 

13 section 237(a)(4)’’; and 

14 (B) by striking ‘‘paragraph (19)’’ and in15 serting ‘‘subparagraph (D)’’; and 

16 (6) in the heading, by striking ‘‘Deportation’’ 

17 and inserting ‘‘Removal’’. 

18 (b) CORRECTION OF CITATION RESPECTING THE

19 TAX DEDUCTION RELATING TO HEALTH INSURANCE

20 COSTS OF SELF-EMPLOYED INDIVIDUALS.—Section 

21 211(a)(15) of such Act (42 U.S.C. 411(a)(15)) is amend22 ed by striking ‘‘section 162(m)’’ and inserting ‘‘section 

23 162(l)’’. 

24 (c) ELIMINATION OF REFERENCE TO OBSOLETE 20-

25 DAY AGRICULTURAL WORK TEST.—Section 3102(a) of 
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1 the Internal Revenue Code of 1986 is amended by striking 

2 ‘‘and the employee has not performed agricultural labor 

3 for the employer on 20 days or more in the calendar year 

4 for cash remuneration computed on a time basis’’. 

5 SEC. 425. TECHNICAL CORRECTION RESPECTING SELF-EM6 PLOYMENT INCOME IN COMMUNITY PROP7 ERTY STATES. 

8 (a) SOCIAL SECURITY ACT AMENDMENT.—Section 

9 211(a)(5)(A) of the Social Security Act (42 

10 U.S.C. 411(a)(5)(A)) is amended by striking ‘‘all of the 

11 gross income’’ and all that follows and inserting ‘‘the gross 

12 income and deductions attributable to such trade or busi13 ness shall be treated as the gross income and deductions 

14 of the spouse carrying on such trade or business or, if 

15 such trade or business is jointly operated, treated as the 

16 gross income and deductions of each spouse on the basis 

17 of their respective distributive share of the gross income 

18 and deductions;’’. 

19 (b) INTERNAL REVENUE CODE OF 1986 AMEND20 MENT.—Section 1402(a)(5)(A) of the Internal Revenue 

21 Code of 1986 is amended by striking ‘‘all of the gross in22 come’’ and all that follows and inserting ‘‘the gross income 

23 and deductions attributable to such trade or business shall 

24 be treated as the gross income and deductions of the 

25 spouse carrying on such trade or business or, if such trade 
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1 or business is jointly operated, treated as the gross income 

2 and deductions of each spouse on the basis of their respec3 tive distributive share of the gross income and deductions; 

4 and’’.

Æ