II 

Calendar No. 349

108TH CONGRESS 

1ST SESSION H. R. 743

[Report No. 108–176] 

IN THE SENATE OF THE UNITED STATES 

APRIL 3, 2003

Received; read twice and referred to the Committee on Finance 

OCTOBER 29, 2003

Reported by Mr. GRASSLEY, with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

AN ACT

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)) (as 

8 amended by section 209(b)(1) of this Act) is amend9 ed further by inserting after the first sentence the 

10 following new sentences: ‘‘In any case in which a 

11 representative payee that—

12 ‘‘(A) is not an individual; or 

13 ‘‘(B) is an individual who, for any month 

14 during a period when misuse occurs, serves 15 

15 or more individuals who are beneficiaries under 

16 this title, title II, title XVI, or any combination 

17 of such titles; 

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

19 such representative payee, the Commissioner of So20 cial Security shall pay to the beneficiary or the bene21 ficiary’s alternative representative payee an amount 

22 equal to the amount of such benefit so misused. The 

23 provisions of this paragraph are subject to the limi24 tations of subsection (l)(2).’’. 
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1 (2) MISUSE OF BENEFITS DEFINED.—Section 

2 807 of such Act (42 U.S.C. 1007) is amended by 

3 adding at the end the following new subsection: 

4 ‘‘(j) MISUSE OF BENEFITS.—For purposes of this 

5 title, misuse of benefits by a representative payee occurs 

6 in any case in which the representative payee receives pay7 ment under this title for the use and benefit of another 

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

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

10 of such person. The Commissioner of Social Security may 

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

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

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

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

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

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

17 (c) TITLE XVI AMENDMENTS.—

18 (1) REISSUANCE OF BENEFITS.—Section 

19 1631(a)(2)(E) of such Act (42 

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

21 after the first sentence the following new sentences: 

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

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

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

25 subparagraph (D)(ii)); or 
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1 ‘‘(ii) is an individual who, for any month during 

2 a period when misuse occurs, serves 15 or more indi3 viduals who are beneficiaries under this title, title II, 

4 title VIII, or any combination of such titles; 

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

6 representative payee, the Commissioner of Social Security 

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

8 representative payee an amount equal to the amount of 

9 the benefit so misused. The provisions of this subpara10 graph are subject to the limitations of subparagraph 

11 (H)(ii).’’. 

12 (2) EXCLUSION OF REISSUED BENEFITS FROM

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

14 U.S.C. 1382b(a)) is amended—

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

16 at the end; 

17 (B) in paragraph (13), by striking the pe18 riod and inserting ‘‘; and’’; and 

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

20 following new paragraph: 

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

22 the month in which received, any amount received by 

23 such individual (or spouse) or any other person 

24 whose income is deemed to be included in such indi25 vidual’s (or spouse’s) income for purposes of this 
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1 title as restitution for benefits under this title, title 

2 II, or title VIII that a representative payee of such 

3 individual (or spouse) or such other person under 

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

5 (3) MISUSE OF BENEFITS DEFINED.—Section 

6 1631(a)(2)(A) of such Act (42 

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

8 end the following new clause: 

9 ‘‘(iv) For purposes of this paragraph, misuse of bene10 fits by a representative payee occurs in any case in which 

11 the representative payee receives payment under this title 

12 for the use and benefit of another person and converts 

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

14 for the use and benefit of such other person. The Commis15 sioner of Social Security may prescribe by regulation the 

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

17 clause.’’. 

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

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

20 a representative payee with respect to which the Commis21 sioner makes the determination of misuse on or after Jan22 uary 1, 1995. 
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1 SEC. 102. OVERSIGHT OF REPRESENTATIVE PAYEES. 

2 (a) CERTIFICATION OF BONDING AND LICENSING

3 REQUIREMENTS FOR NONGOVERNMENTAL ORGANIZA4 TIONAL REPRESENTATIVE PAYEES.—

5 (1) TITLE II AMENDMENTS.—Section 205(j) of 

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

7 amended—

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

9 community-based nonprofit social service agen10 cy licensed or bonded by the State’’ in sub11 clause (I) and inserting ‘‘a certified community12 based nonprofit social service agency (as de13 fined in paragraph (9))’’; 

14 (B) in paragraph (3)(F), by striking ‘‘com15 munity-based nonprofit social service agencies’’ 

16 and inserting ‘‘certified community-based non17 profit social service agencies (as defined in 

18 paragraph (9))’’; 

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

20 community-based nonprofit social service agen21 cy which is bonded or licensed in each State in 

22 which it serves as a representative payee’’ and

23 inserting ‘‘any certified community-based non24 profit social service agency (as defined in para25 graph (9))’’; and 
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1 (D) by adding after paragraph (8) (as 

2 added by section 101(a)(2) of this Act) the fol3 lowing new paragraph: 

4 ‘‘(9) For purposes of this subsection, the term ‘cer5 tified community-based nonprofit social service agency’ 

6 means a community-based nonprofit social service agency 

7 which is in compliance with requirements, under regula8 tions which shall be prescribed by the Commissioner, for 

9 annual certification to the Commissioner that it is bonded 

10 in accordance with requirements specified by the Commis11 sioner and that it is licensed in each State in which it 

12 serves as a representative payee (if licensing is available 

13 in such State) in accordance with requirements specified 

14 by the Commissioner. Any such annual certification shall 

15 include a copy of any independent audit on such agency 

16 which may have been performed since the previous certifi17 cation.’’. 

18 (2) TITLE XVI AMENDMENTS.—Section 

19 1631(a)(2) of such Act (42 U.S.C. 1383(a)(2)) is 

20 amended—

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

22 ‘‘a community-based nonprofit social service 

23 agency licensed or bonded by the State’’ in sub24 clause (I) and inserting ‘‘a certified community-
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1 based nonprofit social service agency (as de2 fined in subparagraph (I))’’; 

3 (B) in subparagraph (D)(ii)—

4 (i) by striking ‘‘or any community5 based’’ and all that follows through ‘‘in ac6 cordance’’ in subclause (II) and inserting 

7 ‘‘or any certified community-based non8 profit social service agency (as defined in 

9 subparagraph (I)), if the agency, in ac10 cordance’’; 

11 (ii) by redesignating items (aa) and 

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

13 (and adjusting the margination accord14 ingly); and 

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

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

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

18 subparagraph: 

19 ‘‘(I) For purposes of this paragraph, the term ‘cer20 tified community-based nonprofit social service agency’ 

21 means a community-based nonprofit social service agency 

22 which is in compliance with requirements, under regula23 tions which shall be prescribed by the Commissioner, for 

24 annual certification to the Commissioner that it is bonded 

25 in accordance with requirements specified by the Commis-
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1 sioner and that it is licensed in each State in which it 

2 serves as a representative payee (if licensing is available 

3 in the State) in accordance with requirements specified by 

4 the Commissioner. Any such annual certification shall in5 clude a copy of any independent audit on the agency which 

6 may have been performed since the previous certifi7 cation.’’. 

8 (3) EFFECTIVE DATE.—The amendments made 

9 by this subsection shall take effect on the first day 

10 of the thirteenth month beginning after the date of 

11 the enactment of this Act. 

12 (b) PERIODIC ONSITE REVIEW.—

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

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

15 read as follows: 

16 ‘‘(6)(A) In addition to such other reviews of rep17 resentative payees as the Commissioner of Social Security 

18 may otherwise conduct, the Commissioner shall provide for 

19 the periodic onsite review of any person or agency located 

20 in the United States that receives the benefits payable 

21 under this title (alone or in combination with benefits pay22 able under title VIII or title XVI) to another individual 

23 pursuant to the appointment of such person or agency as 

24 a representative payee under this subsection, section 807, 

25 or section 1631(a)(2) in any case in which—
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1 ‘‘(i) the representative payee is a person who 

2 serves in that capacity with respect to 15 or more 

3 such individuals; 

4 ‘‘(ii) the representative payee is a certified com5 munity-based nonprofit social service agency (as de6 fined in paragraph (9) of this subsection or section 

7 1631(a)(2)(I)); or 

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

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

10 serves in that capacity with respect to 50 or more 

11 such individuals. 

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

13 year, the Commissioner shall submit to the Committee on 

14 Ways and Means of the House of Representatives and the 

15 Committee on Finance of the Senate a report on the re16 sults of periodic onsite reviews conducted during the fiscal 

17 year pursuant to subparagraph (A) and of any other re18 views of representative payees conducted during such fis19 cal year in connection with benefits under this title. Each 

20 such report shall describe in detail all problems identified 

21 in such reviews and any corrective action taken or planned 

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

23 ‘‘(i) the number of such reviews; 

24 ‘‘(ii) the results of such reviews; 
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1 ‘‘(iii) the number of cases in which the rep2 resentative payee was changed and why; 

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

4 of expedited, targeted oversight of the representative 

5 payee by the Commissioner conducted upon receipt 

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

7 vendor, or a similar irregularity; 

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

9 there was a misuse of funds; 

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

11 were dealt with by the Commissioner; 

12 ‘‘(vii) the final disposition of such cases of mis13 use of funds, including any criminal penalties im14 posed; and 

15 ‘‘(viii) such other information as the Commis16 sioner deems appropriate.’’. 

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

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

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

20 following new subsection: 

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

22 such other reviews of representative payees as the Com23 missioner of Social Security may otherwise conduct, the 

24 Commissioner may provide for the periodic onsite review 

25 of any person or agency that receives the benefits payable 
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1 under this title (alone or in combination with benefits pay2 able under title II or title XVI) to another individual pur3 suant to the appointment of such person or agency as a 

4 representative payee under this section, section 205(j), or 

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

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

7 serves in that capacity with respect to 15 or more 

8 such individuals; or 

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

10 serves in that capacity with respect to 50 or more 

11 such individuals. 

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

13 year, the Commissioner shall submit to the Committee on 

14 Ways and Means of the House of Representatives and the 

15 Committee on Finance of the Senate a report on the re16 sults of periodic onsite reviews conducted during the fiscal 

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

18 of representative payees conducted during such fiscal year 

19 in connection with benefits under this title. Each such re20 port shall describe in detail all problems identified in such 

21 reviews and any corrective action taken or planned to be 

22 taken to correct such problems, and shall include—

23 ‘‘(A) the number of such reviews; 

24 ‘‘(B) the results of such reviews; 
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1 ‘‘(C) the number of cases in which the rep2 resentative payee was changed and why; 

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

4 of expedited, targeted oversight of the representative 

5 payee by the Commissioner conducted upon receipt 

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

7 vendor, or a similar irregularity; 

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

9 there was a misuse of funds; 

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

11 were dealt with by the Commissioner; 

12 ‘‘(G) the final disposition of such cases of mis13 use of funds, including any criminal penalties im14 posed; and 

15 ‘‘(H) such other information as the Commis16 sioner deems appropriate.’’. 

17 (3) TITLE XVI AMENDMENT.—Section 

18 1631(a)(2)(G) of such Act (42 

19 U.S.C. 1383(a)(2)(G)) is amended to read as fol20 lows: 

21 ‘‘(G)(i) In addition to such other reviews of rep22 resentative payees as the Commissioner of Social Security 

23 may otherwise conduct, the Commissioner shall provide for 

24 the periodic onsite review of any person or agency that 

25 receives the benefits payable under this title (alone or in 
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1 combination with benefits payable under title II or title 

2 VIII) to another individual pursuant to the appointment 

3 of the person or agency as a representative payee under 

4 this paragraph, section 205(j), or section 807 in any case 

5 in which—

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

7 serves in that capacity with respect to 15 or more 

8 such individuals; 

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

10 community-based nonprofit social service agency (as 

11 defined in subparagraph (I) of this paragraph or 

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

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

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

15 that serves in that capacity with respect to 50 or 

16 more such individuals. 

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

18 year, the Commissioner shall submit to the Committee on 

19 Ways and Means of the House of Representatives and the 

20 Committee on Finance of the Senate a report on the re21 sults of periodic onsite reviews conducted during the fiscal 

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

23 representative payees conducted during such fiscal year in 

24 connection with benefits under this title. Each such report 

25 shall describe in detail all problems identified in the re-
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1 views and any corrective action taken or planned to be 

2 taken to correct the problems, and shall include—

3 ‘‘(I) the number of the reviews; 

4 ‘‘(II) the results of such reviews; 

5 ‘‘(III) the number of cases in which the rep6 resentative payee was changed and why; 

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

8 of expedited, targeted oversight of the representative 

9 payee by the Commissioner conducted upon receipt 

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

11 vendor, or a similar irregularity; 

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

13 there was a misuse of funds; 

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

15 were dealt with by the Commissioner; 

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

17 misuse of funds, including any criminal penalties im18 posed; and 

19 ‘‘(VIII) such other information as the Commis20 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 (B), by adding at the end 

25 the following new clause: 
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1 ‘‘(iii) Notwithstanding the provisions of section 552a 

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

3 Federal or State law (other than section 6103 of the Inter4 nal Revenue Code of 1986 and section 1106(c) of this 

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

6 or local law enforcement officer, upon the written request 

7 of the officer, with the current address, social security ac8 count number, and photograph (if applicable) of any per9 son investigated under this paragraph, if the officer fur10 nishes the Commissioner with the name of such person 

11 and such other identifying information as may reasonably 

12 be required by the Commissioner to establish the unique 

13 identity of such person, and notifies the Commissioner 

14 that—

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

16 202(x)(1)(A)(iv), 

17 ‘‘(II) such person has information that is nec18 essary for the officer to conduct the officer’s official 

19 duties, and 

20 ‘‘(III) the location or apprehension of such per21 son is within the officer’s official duties.’’; 

22 (3) in subparagraph (C)(i)(II), by striking 

23 ‘‘subparagraph (B)(i)(IV),,’’ and inserting ‘‘subpara24 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 (4) 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’’; 

8 (2) in subsection (b), by adding at the end the 

9 following new paragraph: 

10 ‘‘(3) Notwithstanding the provisions of section 

11 552a of title 5, United States Code, or any other 

12 provision of Federal or State law (other than section 

13 6103 of the Internal Revenue Code of 1986 and sec14 tion 1106(c) of this Act), the Commissioner shall 

15 furnish any Federal, State, or local law enforcement 

16 officer, upon the written request of the officer, with 

17 the current address, social security account number, 

18 and photograph (if applicable) of any person inves19 tigated under this subsection, if the officer furnishes 

20 the Commissioner with the name of such person and 

21 such other identifying information as may reason22 ably be required by the Commissioner to establish 

23 the unique identity of such person, and notifies the 

24 Commissioner that—
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1 ‘‘(A) such person is described in section 

2 804(a)(2), 

3 ‘‘(B) such person has information that is 

4 necessary for the officer to conduct the officer’s 

5 official duties, and 

6 ‘‘(C) the location or apprehension of such 

7 person is within the officer’s official duties.’’; 

8 and 

9 (3) in subsection (d)(1)—

10 (A) by striking ‘‘or’’ at the end of subpara11 graph (B); 

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

13 subparagraph (C) and inserting a semicolon; 

14 and 

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

16 subparagraphs: 

17 ‘‘(D) such person has previously been con18 victed as described in subsection (b)(2)(D), un19 less the Commissioner determines that such 

20 payment would be appropriate notwithstanding 

21 such conviction; or 

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

23 section 804(a)(2).’’. 
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1 (c) TITLE XVI AMENDMENTS.—Section 

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

3 amended—

4 (1) in clause (ii)—

5 (A) by striking ‘‘and’’ at the end of sub6 clause (III);

7 (B) by redesignating subclause (IV) as 

8 subclause (VI); and 

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

10 following new subclauses: 

11 ‘‘(IV) obtain information concerning whether 

12 the person has been convicted of any other offense 

13 under Federal or State law which resulted in impris14 onment for more than 1 year; 

15 ‘‘(V) obtain information concerning whether 

16 such person is a person described in section 

17 1611(e)(4)(A); and’’; 

18 (2) in clause (iii)(II)—

19 (A) by striking ‘‘clause (ii)(IV)’’ and in20 serting ‘‘clause (ii)(VI)’’; and 

21 (B) by striking ‘‘section 

22 205(j)(2)(B)(i)(IV)’’ and inserting ‘‘section 

23 205(j)(2)(B)(i)(VI)’’; 

24 (3) in clause (iii)—
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1 (A) by striking ‘‘or’’ at the end of sub2 clause (II); 

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

4 subclause (III) and inserting a semicolon; and 

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

6 subclauses: 

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

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

9 unless the Commissioner determines that the pay10 ment would be appropriate notwithstanding the con11 viction; or 

12 ‘‘(V) such person is a person described in sec13 tion 1611(e)(4)(A).’’; and 

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

15 clause: 

16 ‘‘(xiv) Notwithstanding the provisions of section 552a 

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

18 Federal or State law (other than section 6103 of the Inter19 nal Revenue Code of 1986 and section 1106(c) of this 

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

21 or local law enforcement officer, upon the written request 

22 of the officer, with the current address, social security ac23 count number, and photograph (if applicable) of any per24 son investigated under this subparagraph, if the officer 

25 furnishes the Commissioner with the name of such person 
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1 and such other identifying information as may reasonably 

2 be required by the Commissioner to establish the unique 

3 identity of such person, and notifies the Commissioner 

4 that—

5 ‘‘(I) such person is described in section 

6 1611(e)(4)(A), 

7 ‘‘(II) such person has information that is nec8 essary for the officer to conduct the officer’s official 

9 duties, and 

10 ‘‘(III) the location or apprehension of such per11 son is within the officer’s official duties.’’. 

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

13 this section shall take effect on the first day of the thir14 teenth month beginning after the date of the enactment 

15 of this Act. 

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

17 of Social Security, in consultation with the Inspector Gen18 eral of the Social Security Administration, shall prepare 

19 a report evaluating whether the existing procedures and 

20 reviews for the qualification (including disqualification) of 

21 representative payees are sufficient to enable the Commis22 sioner to protect benefits from being misused by represent23 ative payees. The Commissioner shall submit the report 

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

25 Representatives and the Committee on Finance of the 
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1 Senate no later than 270 days after the date of the enact2 ment of this Act. The Commissioner shall include in such 

3 report any recommendations that the Commissioner con4 siders appropriate. 

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

6 BY REPRESENTATIVE PAYEES. 

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

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

9 amended—

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

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

12 a’’; and 

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

14 Secretary’’ and inserting the following: 

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

16 individual for any month with respect to which the Com17 missioner of Social Security or a court of competent juris18 diction has determined that the organization misused all 

19 or part of the individual’s benefit, and any amount so col20 lected by the qualified organization for such month shall 

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

22 for purposes of paragraphs (5) and (6). The Commis23 sioner’’. 
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1 (b) TITLE XVI AMENDMENTS.—Section 

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

3 U.S.C. 1383(a)(2)(D)(i)) is amended—

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

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

6 a’’; and 

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

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

9 qualified organization may not collect a fee from an 

10 individual for any month with respect to which the 

11 Commissioner of Social Security or a court of com12 petent jurisdiction has determined that the organiza13 tion misused all or part of the individual’s benefit, 

14 and any amount so collected by the qualified organi15 zation for such month shall be treated as a misused 

16 part of the individual’s benefit for purposes of sub17 paragraphs (E) and (F). The Commissioner’’. 

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

19 this section shall apply to any month involving benefit mis20 use by a representative payee in any case with respect to 

21 which the Commissioner of Social Security or a court of 

22 competent jurisdiction makes the determination of misuse 

23 after 180 days after the date of the enactment of this Act. 
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1 SEC. 105. LIABILITY OF REPRESENTATIVE PAYEES FOR 

2 MISUSED BENEFITS. 

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

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

5 sections 101 and 102) is amended further—

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

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

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

9 by striking ‘‘paragraph (9)’’ and inserting ‘‘para10 graph (10)’’;

11 (3) in paragraph (6)(A)(ii), by striking ‘‘para12 graph (9)’’ and inserting ‘‘paragraph (10)’’; and 

13 (4) by inserting after paragraph (6) the fol14 lowing new paragraph: 

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

16 court of competent jurisdiction determines that a rep17 resentative payee that is not a Federal, State, or local gov18 ernment agency has misused all or part of an individual’s 

19 benefit that was paid to such representative payee under 

20 this subsection, the representative payee shall be liable for 

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

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

23 overpayment of benefits under this title to the representa24 tive payee for all purposes of this Act and related laws 

25 pertaining to the recovery of such overpayments. Subject 

26 to subparagraph (B), upon recovering all or any part of 
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1 such amount, the Commissioner shall certify an amount 

2 equal to the recovered amount for payment to such indi3 vidual or such individual’s alternative representative 

4 payee. 

5 ‘‘(B) The total of the amount certified for payment 

6 to such individual or such individual’s alternative rep7 resentative payee under subparagraph (A) and the amount 

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

9 the total benefit amount misused by the representative 

10 payee with respect to such individual.’’. 

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

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

13 by adding at the end the following new subsection: 

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

15 ‘‘(1) IN GENERAL.—If the Commissioner of So16 cial Security or a court of competent jurisdiction de17 termines that a representative payee that is not a 

18 Federal, State, or local government agency has mis19 used all or part of a qualified individual’s benefit 

20 that was paid to such representative payee under 

21 this section, the representative payee shall be liable 

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

23 extent not repaid by the representative payee) shall 

24 be treated as an overpayment of benefits under this 

25 title to the representative payee for all purposes of 
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1 this Act and related laws pertaining to the recovery 

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

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

4 Commissioner shall make payment of an amount 

5 equal to the recovered amount to such qualified indi6 vidual or such qualified individual’s alternative rep7 resentative payee. 

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

9 paid to such individual or such individual’s alter10 native representative payee under paragraph (1) and 

11 the amount paid under subsection (i) may not ex12 ceed the total benefit amount misused by the rep13 resentative payee with respect to such individual.’’. 

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

15 of such Act (42 U.S.C. 1383(a)(2)) (as amended by sec16 tion 102(b)(3)) is amended further—

17 (1) in subparagraph (G)(i)(II), by striking ‘‘sec18 tion 205(j)(9)’’ and inserting ‘‘section 205(j)(10)’’; 

19 and 

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

21 the following: 

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

23 court of competent jurisdiction determines that a rep24 resentative payee that is not a Federal, State, or local gov25 ernment agency has misused all or part of an individual’s 
32

•HR 743 RS 

1 benefit that was paid to the representative payee under 

2 this paragraph, the representative payee shall be liable for 

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

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

5 overpayment of benefits under this title to the representa6 tive payee for all purposes of this Act and related laws 

7 pertaining to the recovery of the overpayments. Subject 

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

9 amount, the Commissioner shall make payment of an 

10 amount equal to the recovered amount to such individual 

11 or such individual’s alternative representative payee. 

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

13 or such individual’s alternative representative payee under 

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

15 may not exceed the total benefit amount misused by the 

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

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

18 this section shall apply to benefit misuse by a representa19 tive payee in any case with respect to which the Commis20 sioner of Social Security or a court of competent jurisdic21 tion makes the determination of misuse after 180 days 

22 after the date of the enactment of this Act. 
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1 SEC. 106. AUTHORITY TO REDIRECT DELIVERY OF BENEFIT 

2 PAYMENTS WHEN A REPRESENTATIVE PAYEE 

3 FAILS TO PROVIDE REQUIRED ACCOUNTING. 

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

5 the Social Security Act (42 U.S.C. 405(j)(3)) (as amend6 ed by sections 102(a)(1)(B) and 105(a)(2)) is amended—

7 (1) by redesignating subparagraphs (E) and 

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

9 (2) by inserting after subparagraph (D) the fol10 lowing new subparagraph: 

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

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

13 another fails to submit a report required by the Commis14 sioner of Social Security under subparagraph (A) or (D), 

15 the Commissioner may, after furnishing notice to such 

16 person and the individual entitled to such payment, re17 quire that such person appear in person at a field office 

18 of the Social Security Administration serving the area in 

19 which the individual resides in order to receive such pay20 ments.’’.

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

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

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

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

25 (2) by inserting after paragraph (2) the fol26 lowing new paragraph: 
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•HR 743 RS 

1 ‘‘(3) AUTHORITY TO REDIRECT DELIVERY OF

2 BENEFIT PAYMENTS WHEN A REPRESENTATIVE

3 PAYEE FAILS TO PROVIDE REQUIRED ACCOUNT4 ING.—In any case in which the person described in 

5 paragraph (1) or (2) receiving benefit payments on 

6 behalf of a qualified individual fails to submit a re7 port required by the Commissioner of Social Secu8 rity under paragraph (1) or (2), the Commissioner 

9 may, after furnishing notice to such person and the 

10 qualified individual, require that such person appear 

11 in person at a United States Government facility 

12 designated by the Social Security Administration as 

13 serving the area in which the qualified individual re14 sides in order to receive such benefit payments.’’. 

15 (c) TITLE XVI AMENDMENT.—Section 

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

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

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

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

20 fails to submit a report required by the Commissioner of 

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

22 may, after furnishing notice to the person and the indi23 vidual entitled to the payment, require that such person 

24 appear in person at a field office of the Social Security 
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1 Administration serving the area in which the individual 

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

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

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

5 the enactment of this Act. 

6 Subtitle B—Enforcement 

7 SEC. 111. CIVIL MONETARY PENALTY AUTHORITY WITH RE8 SPECT TO WRONGFUL CONVERSIONS BY REP9 RESENTATIVE PAYEES. 

10 (a) IN GENERAL.—Section 1129(a) of the Social Se11 curity Act (42 U.S.C. 1320a–8) is amended by adding at 

12 the end the following new paragraph: 

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

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

15 capacity of a representative payee pursuant to section 

16 205(j), 807, or 1631(a)(2), a payment under title II, VIII, 

17 or XVI for the use and benefit of another individual, con18 verts such payment, or any part thereof, to a use that 

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

20 use and benefit of such other individual shall be subject 

21 to, in addition to any other penalties that may be pre22 scribed by law, a civil money penalty of not more than 

23 $5,000 for each such conversion. Such person shall also 

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

25 by the United States resulting from the conversion, of not 
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1 more than twice the amount of any payments so con2 verted.’’. 

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

4 this section shall apply with respect to violations com5 mitted after the date of the enactment of this Act. 

6 TITLE II—PROGRAM 

7 PROTECTIONS 

8 SEC. 201. CIVIL MONETARY PENALTY AUTHORITY WITH RE9 SPECT TO KNOWING WITHHOLDING OF MATE10 RIAL FACTS. 

11 (a) TREATMENT OF WITHHOLDING OF MATERIAL

12 FACTS.—

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

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

15 is amended—

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

17 and inserting ‘‘who—’’; 

18 (B) by striking ‘‘makes’’ in the first sen19 tence and all that follows through ‘‘shall be sub20 ject to,’’ and inserting the following: 

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

22 or representation of a material fact, for use in deter23 mining any initial or continuing right to or the 

24 amount of monthly insurance benefits under title II 

25 or benefits or payments under title VIII or XVI, 
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1 that the person knows or should know is false or 

2 misleading, 

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

4 for such use with knowing disregard for the truth, 

5 or 

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

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

8 fact which the person knows or should know is mate9 rial to the determination of any initial or continuing 

10 right to or the amount of monthly insurance benefits 

11 under title II or benefits or payments under title 

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

13 that the statement or representation with such omis14 sion is false or misleading or that the withholding of 

15 such disclosure is misleading, 

16 shall be subject to,’’; 

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

18 benefits or payments while withholding disclo19 sure of such fact’’ after ‘‘each such statement 

20 or representation’’ in the first sentence; 

21 (D) by inserting ‘‘or because of such with22 holding of disclosure of a material fact’’ after 

23 ‘‘because of such statement or representation’’ 

24 in the second sentence; and 
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1 (E) by inserting ‘‘or such a withholding of 

2 disclosure’’ after ‘‘such a statement or rep3 resentation’’ in the second sentence. 

4 (2) ADMINISTRATIVE PROCEDURE FOR IMPOS5 ING PENALTIES.—Section 1129A(a) of such Act (42 

6 U.S.C. 1320a–8a(a)) is amended—

7 (A) by striking ‘‘who’’ the first place it ap8 pears and inserting ‘‘who—’’; and 

9 (B) by striking ‘‘makes’’ and all that fol10 lows through ‘‘shall be subject to,’’ and insert11 ing the following: 

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

13 or representation of a material fact, for use in deter14 mining any initial or continuing right to or the 

15 amount of monthly insurance benefits under title II 

16 or benefits or payments under title XVI that the 

17 person knows or should know is false or misleading, 

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

19 for such use with knowing disregard for the truth, 

20 or 

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

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

23 fact which the person knows or should know is mate24 rial to the determination of any initial or continuing 

25 right to or the amount of monthly insurance benefits 
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1 under title II or benefits or payments under title 

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

3 statement or representation with such omission is 

4 false or misleading or that the withholding of such 

5 disclosure is misleading, 

6 shall be subject to,’’. 

7 (b) CLARIFICATION OF TREATMENT OF RECOVERED

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

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

10 case of amounts recovered arising out of a determination 

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

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

13 (c) CONFORMING AMENDMENTS.—

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

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

16 ‘‘charging fraud or false statements’’. 

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

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

19 representations’’ and inserting ‘‘, representations, or 

20 actions’’. 

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

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

23 ‘‘statement or representation referred to in sub24 section (a) was made’’ and inserting ‘‘violation oc25 curred’’. 
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1 (d) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply with respect to violations com3 mitted after the date on which the Commissioner imple4 ments the centralized computer file described in section 

5 202. 

6 SEC. 202. ISSUANCE BY COMMISSIONER OF SOCIAL SECU7 RITY OF RECEIPTS TO ACKNOWLEDGE SUB8 MISSION OF REPORTS OF CHANGES IN WORK 

9 OR EARNINGS STATUS OF DISABLED BENE10 FICIARIES. 

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

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

13 time as the Commissioner of Social Security implements 

14 a centralized computer file recording the date of the sub15 mission of information by a disabled beneficiary (or rep16 resentative) regarding a change in the beneficiary’s work 

17 or earnings status, the Commissioner shall issue a receipt 

18 to the disabled beneficiary (or representative) each time 

19 he or she submits documentation, or otherwise reports to 

20 the Commissioner, on a change in such status. 
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1 SEC. 203. DENIAL OF TITLE II BENEFITS TO PERSONS FLEE2 ING PROSECUTION, CUSTODY, OR CONFINE3 MENT, AND TO PERSONS VIOLATING PROBA4 TION OR PAROLE. 

5 (a) IN GENERAL.—Section 202(x) of the Social Secu6 rity Act (42 U.S.C. 402(x)) is amended—

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

8 all that follows and inserting the following: ‘‘Pris9 oners, Certain Other Inmates of Publicly Funded In10 stitutions, Fugitives, Probationers, and Parolees’’; 

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

12 ‘‘or’’ at the end; 

13 (3) in paragraph (1)(A)(iii), by striking the pe14 riod at the end and inserting a comma; 

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

16 following: 

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

18 or confinement after conviction, under the laws of 

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

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

21 under the laws of the place from which the person 

22 flees, or which, in the case of the State of New Jer23 sey, is a high misdemeanor under the laws of such 

24 State, or 

25 ‘‘(v) is violating a condition of probation or pa26 role imposed under Federal or State law. 
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1 In the case of an individual from whom such monthly ben2 efits have been withheld pursuant to clause (iv) or (v), 

3 the Commissioner may, for good cause shown, pay such 

4 withheld benefits to the individual.’’; and 

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

6 following new subparagraph: 

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

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

9 Federal or State law (other than section 6103 of the Inter10 nal Revenue Code of 1986 and section 1106(c) of this 

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

12 or local law enforcement officer, upon the written request 

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

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

15 under this title, if the officer furnishes the Commissioner 

16 with the name of the beneficiary, and other identifying in17 formation as reasonably required by the Commissioner to 

18 establish the unique identity of the beneficiary, and noti19 fies the Commissioner that—

20 ‘‘(i) the beneficiary—

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

22 paragraph (1)(A); and 

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

24 the officer to conduct the officer’s official du25 ties; and
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•HR 743 RS 

1 ‘‘(ii) the location or apprehension of the bene2 ficiary is within the officer’s official duties.’’. 

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

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

5 9 months after the date of the enactment of this Act, the 

6 Commissioner of Social Security shall promulgate regula7 tions governing payment by the Commissioner, for good 

8 cause shown, of withheld benefits, pursuant to the last 

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

10 (as amended by subsection (a)). 

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

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

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

14 after the date of the enactment of this Act. 

15 SEC. 204. REQUIREMENTS RELATING TO OFFERS TO PRO16 VIDE FOR A FEE A PRODUCT OR SERVICE 

17 AVAILABLE WITHOUT CHARGE FROM THE SO18 CIAL SECURITY ADMINISTRATION. 

19 (a) IN GENERAL.—Section 1140 of the Social Secu20 rity Act (42 U.S.C. 1320b–10) is amended—

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

22 following new paragraph: 

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

24 individual to obtain a product or service that the person 

25 knows or should know is provided free of charge by the 
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1 Social Security Administration unless, at the time the 

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

3 whom the offer is tendered a notice that—

4 ‘‘(i) explains that the product or service is avail5 able free of charge from the Social Security Admin6 istration, and 

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

8 Commissioner of Social Security respecting the con9 tent of such notice and its placement, visibility, and 

10 legibility. 

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

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

13 connection with a claim arising under title II, title 

14 VIII, or title XVI; or 

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

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

17 title XVI.’’; and 

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

19 OF MISUSE OF SYMBOLS, EMBLEMS, OR NAMES IN

20 REFERENCE’’ and inserting ‘‘PROHIBITIONS RELAT21 ING TO REFERENCES’’. 

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

23 this section shall apply to offers of assistance made after 

24 the sixth month ending after the Commissioner of Social 

25 Security promulgates final regulations prescribing the 
45

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1 standards applicable to the notice required to be provided 

2 in connection with such offer. The Commissioner shall 

3 promulgate such final regulations within 1 year after the 

4 date of the enactment of this Act. 

5 SEC. 205. REFUSAL TO RECOGNIZE CERTAIN INDIVIDUALS 

6 AS CLAIMANT REPRESENTATIVES. 

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

8 U.S.C. 406(a)(1)) is amended by inserting after the sec9 ond sentence the following: ‘‘Notwithstanding the pre10 ceding sentences, the Commissioner, after due notice and 

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

12 a representative, and may disqualify a representative al13 ready recognized, any attorney who has been disbarred or 

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

15 previously admitted to practice or who has been disquali16 fied from participating in or appearing before any Federal 

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

18 may disqualify, as a non-attorney representative any attor19 ney who has been disbarred or suspended from any court 

20 or bar to which he or she was previously admitted to prac21 tice. A representative who has been disqualified or sus22 pended pursuant to this section from appearing before the 

23 Social Security Administration as a result of collecting or 

24 receiving a fee in excess of the amount authorized shall 

25 be barred from appearing before the Social Security Ad-
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1 ministration as a representative until full restitution is 

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

3 for reinstatement only under such rules as the Commis4 sioner may prescribe.’’. 

5 SEC. 206. PENALTY FOR CORRUPT OR FORCIBLE INTER6 FERENCE WITH ADMINISTRATION OF SOCIAL 

7 SECURITY ACT. 

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

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

10 1129A the following new section: 

11 ‘‘ATTEMPTS TO INTERFERE WITH ADMINISTRATION OF

12 SOCIAL SECURITY ACT

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

14 threats of force (including any threatening letter or com15 munication) attempts to intimidate or impede any officer, 

16 employee, or contractor of the Social Security Administra17 tion (including any State employee of a disability deter18 mination service or any other individual designated by the 

19 Commissioner of Social Security) acting in an official ca20 pacity to carry out a duty under this Act, or in any other 

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

22 any threatening letter or communication) obstructs or im23 pedes, or attempts to obstruct or impede, the due adminis24 tration of this Act, shall be fined not more than $5,000, 

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

26 if the offense is committed only by threats of force, the 
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1 person shall be fined not more than $3,000, imprisoned 

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

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

4 or employee of the United States or to a contractor of 

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

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

7 SEC. 207. USE OF SYMBOLS, EMBLEMS, OR NAMES IN REF8 ERENCE TO SOCIAL SECURITY OR MEDICARE. 

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

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

11 (1) in subparagraph (A), by inserting ‘‘ ‘Cen12 ters for Medicare & Medicaid Services’,’’ after 

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

14 striking ‘‘or ‘Medicaid’, ’’ and inserting ‘‘ ‘Med15 icaid’, ‘Death Benefits Update’, ‘Federal Benefit In16 formation’, ‘Funeral Expenses’, or ‘Final Supple17 mental Plan’,’’ and by inserting ‘‘ ‘CMS’,’’ after 

18 ‘‘ ‘HCFA’,’’; 

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

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

21 Care Financing Administration,’’ each place it ap22 pears; and 

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

24 by striking ‘‘the Health Care Financing Administra-
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1 tion,’’ each place it appears and inserting ‘‘the Cen2 ters for Medicare & Medicaid Services,’’.

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

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

5 the date of the enactment of this Act. 

6 SEC. 208. DISQUALIFICATION FROM PAYMENT DURING 

7 TRIAL WORK PERIOD UPON CONVICTION OF 

8 FRAUDULENT CONCEALMENT OF WORK AC9 TIVITY. 

10 (a) IN GENERAL.—Section 222(c) of the Social Secu11 rity Act (42 U.S.C. 422(c)) is amended by adding at the 

12 end the following new paragraph: 

13 ‘‘(5) Upon conviction by a Federal court that an indi14 vidual has fraudulently concealed work activity during a 

15 period of trial work from the Commissioner of Social Secu16 rity by—

17 ‘‘(A) providing false information to the Com18 missioner of Social Security as to whether the indi19 vidual had earnings in or for a particular period, or 

20 as to the amount thereof; 

21 ‘‘(B) receiving disability insurance benefits 

22 under this title while engaging in work activity 

23 under another identity, including under another so24 cial security account number or a number pur25 porting to be a social security account number; or 
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1 ‘‘(C) taking other actions to conceal work activ2 ity with an intent fraudulently to secure payment in 

3 a greater amount than is due or when no payment 

4 is authorized, 

5 no benefit shall be payable to such individual under this 

6 title with respect to a period of disability for any month 

7 before such conviction during which the individual ren8 dered services during the period of trial work with respect 

9 to which the fraudulently concealed work activity occurred, 

10 and amounts otherwise due under this title as restitution, 

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

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

13 individual is liable as overpayments by reason of such con14 cealment.’’. 

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

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

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

18 SEC. 209. AUTHORITY FOR JUDICIAL ORDERS OF RESTITU19 TION. 

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

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

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

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

24 (2) by inserting after subsection (a) the fol25 lowing new subsection: 
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1 ‘‘(b)(1) Any Federal court, when sentencing a defend2 ant convicted of an offense under subsection (a), may 

3 order, in addition to or in lieu of any other penalty author4 ized by law, that the defendant make restitution to the 

5 Social Security Administration. 

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

7 United States Code, shall apply with respect to the 

8 issuance and enforcement of orders of restitution under 

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

10 Security Administration shall be considered the victim. 

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

12 only partial restitution, under this subsection, the court 

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

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

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

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

17 where’’ and inserting the following: 

18 ‘‘(i) RESTITUTION.—

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

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

21 paragraph: 

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

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

24 when sentencing a defendant convicted of an of25 fense under subsection (a), may order, in addi-
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1 tion to or in lieu of any other penalty author2 ized by law, that the defendant make restitution 

3 to the Social Security Administration. 

4 ‘‘(B) RELATED PROVISIONS.—Sections 

5 3612, 3663, and 3664 of title 18, United States 

6 Code, shall apply with respect to the issuance 

7 and enforcement of orders of restitution under 

8 this paragraph. In so applying such sections, 

9 the Social Security Administration shall be con10 sidered the victim. 

11 ‘‘(C) STATED REASONS FOR NOT ORDER12 ING RESTITUTION.—If the court does not order 

13 restitution, or orders only partial restitution, 

14 under this paragraph, the court shall state on 

15 the record the reasons therefor.’’. 

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

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

18 (1) by redesignating subsection (b) as sub19 section (c); and 

20 (2) by inserting after subsection (a) the fol21 lowing new subsection: 

22 ‘‘(b)(1) Any Federal court, when sentencing a defend23 ant convicted of an offense under subsection (a), may 

24 order, in addition to or in lieu of any other penalty author-
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1 ized by law, that the defendant make restitution to the 

2 Social Security Administration. 

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

4 United States Code, shall apply with respect to the 

5 issuance and enforcement of orders of restitution under 

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

7 Security Administration shall be considered the victim. 

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

9 only partial restitution, under this subsection, the court 

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

11 (d) SPECIAL ACCOUNT FOR RECEIPT OF RESTITU12 TION PAYMENTS.—Section 704(b) of such Act (42 U.S.C. 

13 904(b)) is amended by adding at the end the following 

14 new paragraph: 

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

16 amounts received by the Social Security Administration 

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

18 807(i), or 1632(b) shall be credited to a special fund es19 tablished in the Treasury of the United States for 

20 amounts so received or recovered. The amounts so cred21 ited, to the extent and in the amounts provided in advance 

22 in appropriations Acts, shall be available to defray ex23 penses incurred in carrying out titles II, VIII, and XVI. 

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

25 to amounts received in connection with misuse by a rep-
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1 resentative payee (within the meaning of sections 205(j), 

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

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

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

5 be transferred to the Managing Trustee of the Federal 

6 Old-Age and Survivors Insurance Trust Fund or the Fed7 eral Disability Insurance Trust Fund, as determined ap8 propriate by the Commissioner of Social Security, and 

9 such amounts shall be deposited by the Managing Trustee 

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

11 deposited by the Commissioner into the general fund of 

12 the Treasury as miscellaneous receipts.’’. 

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

14 subsections (a), (b), and (c) shall apply with respect to 

15 violations occurring on or after the date of the enactment 

16 of this Act. 

17 TITLE III—ATTORNEY FEE PAY18 MENT SYSTEM IMPROVE19 MENTS 

20 SEC. 301. CAP ON ATTORNEY ASSESSMENTS. 

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

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

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

24 amount of the assessment may not exceed the great25 er of $75 or the adjusted amount as provided pursu-
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1 ant to the following two sentences’’ after ‘‘subpara2 graph (B)’’; and 

3 (2) by adding at the end the following new sen4 tence: ‘‘In the case of any calendar year beginning 

5 after the amendments made by section 301 of the 

6 Social Security Protection Act of 2003 take effect, 

7 the dollar amount specified in the preceding sentence 

8 (including a previously adjusted amount) shall be 

9 adjusted annually under the procedures used to ad10 just benefit amounts under section 215(i)(2)(A)(ii), 

11 except such adjustment shall be based on the higher 

12 of $75 or the previously adjusted amount that would 

13 have been in effect for December of the preceding 

14 year, but for the rounding of such amount pursuant 

15 to the following sentence. Any amount so adjusted 

16 that is not a multiple of $1 shall be rounded to the 

17 next lowest multiple of $1, but in no case less than 

18 $75.’’. 

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

20 this section shall apply with respect to fees for representa21 tion of claimants which are first required to be certified 

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

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

24 180 days after the date of the enactment of this Act. 
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1 SEC. 302. EXTENSION OF ATTORNEY FEE PAYMENT SYSTEM 

2 TO TITLE XVI CLAIMS. 

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

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

5 (1) in subparagraph (A), in the matter pre6 ceding clause (i)—

7 (A) by striking ‘‘section 206(a)’’ and in8 serting ‘‘section 206’’; 

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

10 thereof)’’ and inserting ‘‘(other than sub11 sections (a)(4) and (d) thereof)’’; and 

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

13 and inserting ‘‘such section’’; 

14 (2) in subparagraph (A)(i), by striking ‘‘in sub15 paragraphs (A)(ii)(I) and (C)(i),’’ and inserting ‘‘in 

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

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

18 (3) by striking subparagraph (A)(ii) and insert19 ing the following: 

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

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

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

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

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

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

26 XVI’; 
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1 ‘‘(iv) by substituting, in subsection (b)(1)(A), 

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

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

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

5 ‘or certified for payment’; and 

6 ‘‘(v) by substituting, in subsection (b)(1)(B)(ii), 

7 the phrase ‘deemed to be such amounts as deter8 mined before any applicable reduction under section 

9 1631(g), and reduced by the amount of any reduc10 tion in benefits under this title or title II made pur11 suant to section 1127(a)’ for the phrase ‘determined 

12 before any applicable reduction under section 

13 1127(a))’.’’; and 

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

15 the following new subparagraphs: 

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

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

18 title and the person representing the claimant is an attor19 ney, the Commissioner of Social Security shall pay out of 

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

21 to the lesser of—

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

23 exceed 25 percent of such past-due benefits (as de24 termined before any applicable reduction under sec25 tion 1631(g) and reduced by the amount of any re-
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1 duction in benefits under this title or title II pursu2 ant to section 1127(a)), or 

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

4 after any applicable reductions under sections 

5 1631(g) and 1127(a). 

6 ‘‘(C)(i) Whenever a fee for services is required to be 

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

8 pursuant to subparagraph (B), the Commissioner shall 

9 impose on the attorney an assessment calculated in ac10 cordance with clause (ii). 

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

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

13 the amount of the representative’s fee that would be re14 quired to be paid by subparagraph (B) before the applica15 tion of this subparagraph, by the percentage specified in 

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

17 assessment may not exceed $75. In the case of any cal18 endar year beginning after the amendments made by sec19 tion 302 of the Social Security Protection Act of 2003 

20 take effect, the dollar amount specified in the preceding 

21 sentence (including a previously adjusted amount) shall be 

22 adjusted annually under the procedures used to adjust 

23 benefit amounts under section 215(i)(2)(A)(ii), except 

24 such adjustment shall be based on the higher of $75 or 

25 the previously adjusted amount that would have been in 
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1 effect for December of the preceding year, but for the 

2 rounding of such amount pursuant to the following sen3 tence. Any amount so adjusted that is not a multiple of 

4 $1 shall be rounded to the next lowest multiple of $1, but 

5 in no case less than $75. 

6 ‘‘(II) The percentage specified in this subclause is 

7 such percentage rate as the Commissioner determines is 

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

9 determining and approving fees to attorneys from the 

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

11 percent. 

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

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

14 the amount of the fee otherwise required by subparagraph 

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

16 benefits. 

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

18 clause (i) may not, directly or indirectly, request or other19 wise obtain reimbursement for such assessment from the 

20 claimant whose claim gave rise to the assessment. 

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

22 subparagraph shall be deposited in the Treasury in a sepa23 rate fund created for this purpose. 

24 ‘‘(vi) The assessments authorized under this subpara25 graph shall be collected and available for obligation only 
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1 to the extent and in the amount provided in advance in 

2 appropriations Acts. Amounts so appropriated are au3 thorized to remain available until expended, for adminis4 trative expenses in carrying out this title and related 

5 laws.’’. 

6 (b) EFFECTIVE DATE.—

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

8 this section shall apply with respect to fees for rep9 resentation of claimants which are first required to 

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

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

12 first month that begins after 270 days after the date 

13 of the enactment of this Act. 

14 (2) SUNSET.—Such amendments shall not 

15 apply with respect to fees for representation of 

16 claimants in the case of any claim for benefits with 

17 respect to which the agreement for representation is 

18 entered into after 5 years after the date on which 

19 the Commissioner of Social Security first imple20 ments the amendments made by this section. 

21 (c) STUDY REGARDING FEE-WITHHOLDING FOR

22 NON-ATTORNEY REPRESENTATIVES.—

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

24 date of the enactment of this Act, the Comptroller 

25 General of the United States shall undertake a study 
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1 regarding fee-withholding for non-attorney rep2 resentatives representing claimants before the Social 

3 Security Administration. 

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

5 the study under this subsection, the Comptroller 

6 General shall—

7 (A) compare the non-attorney representa8 tives who seek fee approval for representing 

9 claimants before the Social Security Adminis10 tration to attorney representatives who seek 

11 such fee approval, with regard to—

12 (i) their training, qualifications, and 

13 competency, 

14 (ii) the type and quality of services 

15 provided, and 

16 (iii) the extent to which claimants are 

17 protected through oversight of such rep18 resentatives by the Social Security Admin19 istration or other organizations, and 

20 (B) consider the potential results of ex21 tending to non-attorney representatives the fee 

22 withholding procedures that apply under titles 

23 II and XVI of the Social Security Act for the 

24 payment of attorney fees, including the effect 

25 on claimants and program administration. 
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1 (3) REPORT.—Not later than 1 year after the 

2 date of the enactment of this Act, the Comptroller 

3 General shall submit to the Committee on Ways and 

4 Means of the House of Representatives and the 

5 Committee on Finance of the Senate a report detail6 ing the results of the Comptroller General’s study 

7 conducted pursuant to this subsection. 

8 TITLE IV—MISCELLANEOUS AND 

9 TECHNICAL AMENDMENTS 

10 Subtitle A—Amendments Relating 

11 to the Ticket to Work and Work 

12 Incentives Improvement Act of 

13 1999

14 SEC. 401. APPLICATION OF DEMONSTRATION AUTHORITY 

15 SUNSET DATE TO NEW PROJECTS. 

16 Section 234 of the Social Security Act (42 

17 U.S.C. 434) is amended—

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

19 striking ‘‘conducted under subsection (a)’’ and in20 serting ‘‘initiated under subsection (a) on or before 

21 December 17, 2004’’; and 

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

23 sentence to read as follows: ‘‘The authority to ini24 tiate projects under the preceding provisions of this 

25 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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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 While serving on business of the Board away from their 

3 homes or regular places of business, members may be al4 lowed travel expenses, including per diem in lieu of sub5 sistence, as authorized by section 5703 of title 5, United 

6 States Code, for persons in the Government employed 

7 intermittently.’’. 

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

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

10 SEC. 418. 60-MONTH PERIOD OF EMPLOYMENT REQUIRE11 MENT FOR APPLICATION OF GOVERNMENT 

12 PENSION OFFSET EXEMPTION. 

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

14 202(b)(4)(A) of the Social Security Act (42 U.S.C. 

15 402(b)(4)(A)) is amended by striking ‘‘if, on’’ and insert16 ing ‘‘if, during any portion of the last 60 months of such 

17 service ending with’’. 

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

19 202(c)(2)(A) of such Act (42 U.S.C. 402(c)(2)(A)) is 

20 amended by striking ‘‘if, on’’ and inserting ‘‘if, during any 

21 portion of the last 60 months of such service ending with’’. 

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

23 202(e)(7)(A) of such Act (42 U.S.C. 402(e)(7)(A)) is 

24 amended by striking ‘‘if, on’’ and inserting ‘‘if, during any 

25 portion of the last 60 months of such service ending with’’. 
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1 (d) WIDOWER’S INSURANCE BENEFITS.—Section 

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

3 amended by striking ‘‘if, on’’ and inserting ‘‘if, during any 

4 portion of the last 60 months of such service ending with’’. 

5 (e) MOTHER’S AND FATHER’S INSURANCE BENE6 FITS.—Section 202(g)(4)(A) of the such Act (42 U.S.C. 

7 402(g)(4)(A)) is amended by striking ‘‘if, on’’ and insert8 ing ‘‘‘if, during any portion of the last 60 months of such 

9 service ending with’’. 

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

11 this section shall apply with respect to applications for 

12 benefits under title II of the Social Security Act filed on 

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

14 the date of the enactment of this Act, except that such 

15 amendments shall not apply in connection with monthly 

16 periodic benefits of any individual based on earnings while 

17 in service described in section 202(b)(4)(A), 202(c)(2)(A), 

18 202(e)(7)(A), or 202(f)(2)(A) of the Social Security Act 

19 (in the matter preceding clause (i) thereof)—

20 (1) if the last day of such service occurs before 

21 the end of the 90-day period following the date of 

22 the enactment of this Act, or 

23 (2) in any case in which the last day of such 

24 service occurs after the end of such 90-day period, 

25 such individual performed such service during such 
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1 90-day period which constituted ‘‘employment’’ as 

2 defined in section 210 of such Act, and all such 

3 service subsequently performed by such individual 

4 has constituted such ‘‘employment’’. 

5 Subtitle C—Technical Amendments 

6 SEC. 421. TECHNICAL CORRECTION RELATING TO RESPON7 SIBLE AGENCY HEAD. 

8 Section 1143 of the Social Security Act (42 

9 U.S.C. 1320b–13) is amended—

10 (1) by striking ‘‘Secretary’’ the first place it ap11 pears and inserting ‘‘Commissioner of Social Secu12 rity’’; and 

13 (2) by striking ‘‘Secretary’’ each subsequent 

14 place it appears and inserting ‘‘Commissioner’’. 

15 SEC. 422. TECHNICAL CORRECTION RELATING TO RETIRE16 MENT BENEFITS OF MINISTERS. 

17 (a) IN GENERAL.—Section 211(a)(7) of the Social 

18 Security Act (42 U.S.C. 411(a)(7)) is amended by insert19 ing ‘‘, but shall not include in any such net earnings from 

20 self-employment the rental value of any parsonage or any 

21 parsonage allowance (whether or not excluded under sec22 tion 107 of the Internal Revenue Code of 1986) provided 

23 after the individual retires, or any other retirement benefit 

24 received by such individual from a church plan (as defined 
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1 in section 414(e) of such Code) after the individual re2 tires’’ before the semicolon. 

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

4 this section shall apply to years beginning before, on, or 

5 after December 31, 1994. 

6 SEC. 423. TECHNICAL CORRECTIONS RELATING TO DOMES7 TIC EMPLOYMENT. 

8 (a) AMENDMENT TO INTERNAL REVENUE CODE.—

9 Section 3121(a)(7)(B) of the Internal Revenue Code of 

10 1986 is amended by striking ‘‘described in subsection 

11 (g)(5)’’ and inserting ‘‘on a farm operated for profit’’. 

12 (b) AMENDMENT TO SOCIAL SECURITY ACT.—Sec13 tion 209(a)(6)(B) of the Social Security Act (42 

14 U.S.C. 409(a)(6)(B)) is amended by striking ‘‘described 

15 in section 210(f)(5)’’ and inserting ‘‘on a farm operated 

16 for profit’’. 

17 (c) CONFORMING AMENDMENT.—Section 3121(g)(5) 

18 of such Code and section 210(f)(5) of such Act (42 

19 U.S.C. 410(f)(5)) are amended by striking ‘‘or is domes20 tic service in a private home of the employer’’. 

21 SEC. 424. TECHNICAL CORRECTIONS OF OUTDATED REF22 ERENCES. 

23 (a) CORRECTION OF TERMINOLOGY AND CITATIONS

24 RESPECTING REMOVAL FROM THE UNITED STATES.—

25 Section 202(n) of the Social Security Act (42 
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1 U.S.C. 402(n)) (as amended by section 412) is amended 

2 further—

3 (1) by striking ‘‘deportation’’ each place it ap4 pears and inserting ‘‘removal’’; 

5 (2) by striking ‘‘deported’’ each place it appears 

6 and inserting ‘‘removed’’; 

7 (3) in paragraph (1) (in the matter preceding 

8 subparagraph (A)), by striking ‘‘under section 

9 241(a) (other than under paragraph (1)(C) there10 of)’’ and inserting ‘‘under section 237(a) (other than 

11 paragraph (1)(C) thereof) or 212(a)(6)(A)’’; 

12 (4) in paragraph (2), by striking ‘‘under any of 

13 the paragraphs of section 241(a) of the Immigration 

14 and Nationality Act (other than under paragraph 

15 (1)(C) thereof)’’ and inserting ‘‘under any of the 

16 paragraphs of section 237(a) of the Immigration and 

17 Nationality Act (other than paragraph (1)(C) there18 of) or under section 212(a)(6)(A) of such Act’’; 

19 (5) in paragraph (3)—

20 (A) by striking ‘‘paragraph (19) of section 

21 241(a)’’ and inserting ‘‘subparagraph (D) of 

22 section 237(a)(4)’’; and 

23 (B) by striking ‘‘paragraph (19)’’ and in24 serting ‘‘subparagraph (D)’’; and 
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1 (6) in the heading, by striking ‘‘Deportation’’ 

2 and inserting ‘‘Removal’’. 

3 (b) CORRECTION OF CITATION RESPECTING THE

4 TAX DEDUCTION RELATING TO HEALTH INSURANCE

5 COSTS OF SELF-EMPLOYED INDIVIDUALS.—Section 

6 211(a)(15) of such Act (42 U.S.C. 411(a)(15)) is amend7 ed by striking ‘‘section 162(m)’’ and inserting ‘‘section 

8 162(l)’’. 

9 (c) ELIMINATION OF REFERENCE TO OBSOLETE 20-

10 DAY AGRICULTURAL WORK TEST.—Section 3102(a) of 

11 the Internal Revenue Code of 1986 is amended by striking 

12 ‘‘and the employee has not performed agricultural labor 

13 for the employer on 20 days or more in the calendar year 

14 for cash remuneration computed on a time basis’’. 

15 SEC. 425. TECHNICAL CORRECTION RESPECTING SELF-EM16 PLOYMENT INCOME IN COMMUNITY PROP17 ERTY STATES. 

18 (a) SOCIAL SECURITY ACT AMENDMENT.—Section 

19 211(a)(5)(A) of the Social Security Act (42 

20 U.S.C. 411(a)(5)(A)) is amended by striking ‘‘all of the 

21 gross income’’ and all that follows and inserting ‘‘the gross 

22 income and deductions attributable to such trade or busi23 ness shall be treated as the gross income and deductions 

24 of the spouse carrying on such trade or business or, if 

25 such trade or business is jointly operated, treated as the 
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1 gross income and deductions of each spouse on the basis 

2 of their respective distributive share of the gross income 

3 and deductions;’’. 

4 (b) INTERNAL REVENUE CODE OF 1986 AMEND5 MENT.—Section 1402(a)(5)(A) of the Internal Revenue 

6 Code of 1986 is amended by striking ‘‘all of the gross in7 come’’ and all that follows and inserting ‘‘the gross income 

8 and deductions attributable to such trade or business shall 

9 be treated as the gross income and deductions of the 

10 spouse carrying on such trade or business or, if such trade 

11 or business is jointly operated, treated as the gross income 

12 and deductions of each spouse on the basis of their respec13 tive distributive share of the gross income and deductions; 

14 and’’.

15 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 

16 (a) SHORT TITLE.—This Act may be cited as the ‘‘So17 cial Security Protection Act of 2003’’. 

18 (b) TABLE OF CONTENTS.—The table of contents is as 

19 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.
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Sec. 106. Authority to redirect delivery of benefit payments when a representative 

payee fails to provide required accounting. 

Sec. 107. Survey of use of payments by representative payees. 

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 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. Criminal 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. 

Sec. 210. Information for administration of provisions related to noncovered employment. 

Sec. 211. Cross-program recovery of overpayments. 

Sec. 212. Prohibition on payment of title II benefits to persons not authorized to 

work in the United States. 

TITLE III—ATTORNEY REPRESENTATIVE FEE PAYMENT SYSTEM 

IMPROVEMENTS 

Sec. 301. Cap on attorney assessments. 

Sec. 302. GAO study of fee payment process for claimant representatives. 

TITLE IV—MISCELLANEOUS AND TECHNICAL AMENDMENTS 

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

Improvement Act of 1999

Sec. 401. Elimination of demonstration authority sunset date. 

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 providing 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. 
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Sec. 406. GAO study regarding 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. 

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

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

offset exemption. 

Sec. 419. Post-1956 Military Wage Credits. 

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. 

Sec. 426. Technical amendments to the Railroad Retirement and Survivors Improvement Act of 2001.

Subtitle D—Amendments Related to Title XVI

Sec. 430. Exclusion from income for certain infrequent or irregular income and 

certain interest or dividend income. 

Sec. 431. Uniform 9-month resource exclusion periods. 

Sec. 432. Modification of dedicated account requirements. 

Sec. 433. Elimination of certain restrictions on the application of the student 

earned income exclusion. 

Sec. 434. Exclusion of Americorps and other volunteer benefits for purposes of determining supplemental security income eligibility and benefit 

amounts and social security disability insurance entitlement. 

Sec. 435. Exception to retrospective monthly accounting for nonrecurring income. 

Sec. 436. Removal of restriction on payment of benefits to children who are born 

or who become blind or disabled after their military parents are 

stationed overseas. 

Sec. 437. Treatment of education-related income and resources. 

Sec. 438. Monthly treatment of uniformed service compensation. 

Sec. 439. Update of resource limits. 

Sec. 440. Review of State agency blindness and disability determinations.
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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 

10 first sentence the following: ‘‘In any case in which a 

11 representative payee that—

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

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

14 paragraph (4)(B)); or 

15 ‘‘(B) is an individual who, for any month dur16 ing a period when misuse occurs, serves 15 or more 

17 individuals who are beneficiaries under this title, title 

18 VIII, title XVI, or any combination of such titles; 

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

20 representative payee, the Commissioner of Social Security 

21 shall certify for payment to the beneficiary or the bene22 ficiary’s alternative representative payee an amount equal 

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

24 of this paragraph are subject to the limitations of para25 graph (7)(B).’’.
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1 (2) MISUSE OF BENEFITS DEFINED.—Section 

2 205(j) of such Act (42 U.S.C. 405(j)) is amended by 

3 adding at the end the following: 

4 ‘‘(8) For purposes of this subsection, misuse of benefits 

5 by a representative payee occurs in any case in which the 

6 representative payee receives payment under this title for 

7 the use and benefit of another person and converts such pay8 ment, or any part thereof, to a use other than for the use 

9 and benefit of such other person. The Commissioner of So10 cial Security may prescribe by regulation the meaning of 

11 the term ‘use and benefit’ for purposes of this paragraph.’’. 

12 (b) TITLE VIII AMENDMENTS.—

13 (1) REISSUANCE OF BENEFITS.—Section 

14 807(i)(1) of the Social Security Act (42 

15 U.S.C. 1007(i)) (as amended by section 209(b)(1) of 

16 this Act) is amended further by inserting after the 

17 first sentence the following: ‘‘In any case in which a 

18 representative payee that—

19 ‘‘(A) is not an individual; or 

20 ‘‘(B) is an individual who, for any month 

21 during a period when misuse occurs, serves 15 or 

22 more individuals who are beneficiaries under 

23 this title, title II, title XVI, or any combination 

24 of such titles; 
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1 misuses all or part of an individual’s benefit paid to 

2 such representative payee, the Commissioner of Social 

3 Security shall pay to the beneficiary or the bene4 ficiary’s alternative representative payee an amount 

5 equal to the amount of such benefit so misused. The 

6 provisions of this paragraph are subject to the limita7 tions of subsection (l)(2).’’. 

8 (2) MISUSE OF BENEFITS DEFINED.—Section 

9 807 of such Act (42 U.S.C. 1007) is amended by add10 ing at the end the following: 

11 ‘‘(j) MISUSE OF BENEFITS.—For purposes of this title, 

12 misuse of benefits by a representative payee occurs in any 

13 case in which the representative payee receives payment 

14 under this title for the use and benefit of another person 

15 under this title and converts such payment, or any part 

16 thereof, to a use other than for the use and benefit of such 

17 person. The Commissioner of Social Security may prescribe 

18 by regulation the meaning of the term ‘use and benefit’ for 

19 purposes of this subsection.’’. 

20 (3) TECHNICAL AMENDMENT.—Section 807(a) of 

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

22 sentence, by striking ‘‘for his or her benefit’’ and in23 serting ‘‘for his or her use and benefit’’. 

24 (c) TITLE XVI AMENDMENTS.—
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1 (1) REISSUANCE OF BENEFITS.—Section 

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

3 is amended by inserting after the first sentence the 

4 following: ‘‘In any case in which a representative 

5 payee that—

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

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

8 subparagraph (D)(ii)); or 

9 ‘‘(ii) is an individual who, for any month dur10 ing a period when misuse occurs, serves 15 or more 

11 individuals who are beneficiaries under this title, title 

12 II, title VIII, or any combination of such titles; 

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

14 representative payee, the Commissioner of Social Security 

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

16 representative payee an amount equal to the amount of such 

17 benefit so misused. The provisions of this subparagraph are 

18 subject to the limitations of subparagraph (H)(ii).’’. 

19 (2) EXCLUSION OF REISSUED BENEFITS FROM

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

21 U.S.C. 1382b(a)) is amended—

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

23 at the end; 

24 (B) in paragraph (13), by striking the pe25 riod and inserting ‘‘; and’’; and 
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1 (C) by inserting after paragraph (13) the 

2 following: 

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

4 month in which received, any amount received by 

5 such individual (or spouse) or any other person whose 

6 income is deemed to be included in such individual’s 

7 (or spouse’s) income for purposes of this title as res8 titution for benefits under this title, title II, or title 

9 VIII that a representative payee of such individual 

10 (or spouse) or such other person under section 205(j), 

11 807, or 1631(a)(2) has misused.’’. 

12 (3) MISUSE OF BENEFITS DEFINED.—Section 

13 1631(a)(2)(A) of such Act (42 U.S.C. 1383(a)(2)(A)) 

14 is amended by adding at the end the following: 

15 ‘‘(iv) For purposes of this paragraph, misuse of bene16 fits by a representative payee occurs in any case in which 

17 the representative payee receives payment under this title 

18 for the use and benefit of another person and converts such 

19 payment, or any part thereof, to a use other than for the 

20 use and benefit of such other person. The Commissioner of 

21 Social Security may prescribe by regulation the meaning 

22 of the term ‘use and benefit’ for purposes of this clause.’’. 

23 (d) EFFECTIVE DATE.—The amendments made by this 

24 section shall apply to any case of benefit misuse by a rep25 resentative payee with respect to which the Commissioner 
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1 of Social Security makes the determination of misuse on 

2 or after January 1, 1995. 

3 SEC. 102. OVERSIGHT OF REPRESENTATIVE PAYEES. 

4 (a) CERTIFICATION OF BONDING AND LICENSING RE5 QUIREMENTS FOR NONGOVERNMENTAL ORGANIZATIONAL

6 REPRESENTATIVE PAYEES.—

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

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

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

11 community-based nonprofit social service agency 

12 licensed or bonded by the State’’ in subclause (I) 

13 and inserting ‘‘a certified community-based non14 profit social service agency (as defined in para15 graph (9))’’; 

16 (B) in paragraph (3)(F), by striking ‘‘com17 munity-based nonprofit social service agencies’’ 

18 and inserting ‘‘certified community-based non19 profit social service agencies (as defined in para20 graph (9))’’; 

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

22 community-based nonprofit social service agency 

23 which is bonded or licensed in each State in 

24 which it serves as a representative payee’’ and 

25 inserting ‘‘any certified community-based non-
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1 profit social service agency (as defined in para2 graph (9))’’; and 

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

4 added by section 101(a)(2) of this Act) the fol5 lowing: 

6 ‘‘(9) For purposes of this subsection, the term ‘certified 

7 community-based nonprofit social service agency’ means a 

8 community-based nonprofit social service agency which is 

9 in compliance with requirements, under regulations which 

10 shall be prescribed by the Commissioner, for annual certifi11 cation to the Commissioner that it is bonded in accordance 

12 with requirements specified by the Commissioner and that 

13 it is licensed in each State in which it serves as a represent14 ative payee (if licensing is available in the State) in accord15 ance with requirements specified by the Commissioner. Any 

16 such annual certification shall include a copy of any inde17 pendent audit on the agency which may have been per18 formed since the previous certification.’’. 

19 (2) TITLE XVI AMENDMENTS.—Section 

20 1631(a)(2) of such Act (42 U.S.C. 1383(a)(2)) is 

21 amended—

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

23 ‘‘a community-based nonprofit social service 

24 agency licensed or bonded by the State’’ in sub25 clause (I) and inserting ‘‘a certified community-
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1 based nonprofit social service agency (as defined 

2 in subparagraph (I))’’; 

3 (B) in subparagraph (D)(ii)—

4 (i) by striking ‘‘or any community5 based’’ and all that follows through ‘‘in ac6 cordance’’ in subclause (II) and inserting 

7 ‘‘or any certified community-based non8 profit social service agency (as defined in 

9 subparagraph (I)), if the agency, in accord10 ance’’; 

11 (ii) by redesignating items (aa) and 

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

13 (and adjusting the margins accordingly); 

14 and 

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

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

17 (C) by adding at the end the following: 

18 ‘‘(I) For purposes of this paragraph, the term ‘certified 

19 community-based nonprofit social service agency’ means a 

20 community-based nonprofit social service agency which is 

21 in compliance with requirements, under regulations which 

22 shall be prescribed by the Commissioner, for annual certifi23 cation to the Commissioner that it is bonded in accordance 

24 with requirements specified by the Commissioner and that 

25 it is licensed in each State in which it serves as a represent-
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1 ative payee (if licensing is available in the State) in accord2 ance with requirements specified by the Commissioner. Any 

3 such annual certification shall include a copy of any inde4 pendent audit on the agency which may have been per5 formed since the previous certification.’’. 

6 (3) EFFECTIVE DATE.—The amendments made 

7 by this subsection shall take effect on the first day of 

8 the thirteenth month beginning after the date of the 

9 enactment of this Act. 

10 (b) PERIODIC ONSITE REVIEW.—

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

12 such Act (42 U.S.C. 405(j)(6)) is amended to read as 

13 follows: 

14 ‘‘(6)(A) In addition to such other reviews of represent15 ative payees as the Commissioner of Social Security may 

16 otherwise conduct, the Commissioner shall provide for the 

17 periodic onsite review of any person or agency located in 

18 the United States that receives the benefits payable under 

19 this title (alone or in combination with benefits payable 

20 under title VIII or title XVI) to another individual pursu21 ant to the appointment of such person or agency as a rep22 resentative payee under this subsection, section 807, or sec23 tion 1631(a)(2) in any case in which—
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1 ‘‘(i) the representative payee is a person who 

2 serves in that capacity with respect to 15 or more 

3 such individuals; 

4 ‘‘(ii) the representative payee is a certified com5 munity-based nonprofit social service agency (as de6 fined in paragraph (9) of this subsection or section 

7 1631(a)(2)(I)); or 

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

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

10 serves in that capacity with respect to 50 or more 

11 such individuals. 

12 ‘‘(B) Within 120 days after the end of each fiscal year, 

13 the Commissioner shall submit to the Committee on Ways 

14 and Means of the House of Representatives and the Com15 mittee on Finance of the Senate a report on the results of 

16 periodic onsite reviews conducted during the fiscal year 

17 pursuant to subparagraph (A) and of any other reviews of 

18 representative payees conducted during such fiscal year in 

19 connection with benefits under this title. Each such report 

20 shall describe in detail all problems identified in such re21 views and any corrective action taken or planned to be 

22 taken to correct such problems, and shall include—

23 ‘‘(i) the number of such reviews; 

24 ‘‘(ii) the results of such reviews; 
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1 ‘‘(iii) the number of cases in which the represent2 ative payee was changed and why; 

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

4 of expedited, targeted oversight of the representative 

5 payee by the Commissioner conducted upon receipt of 

6 an allegation of misuse of funds, failure to pay a ven7 dor, or a similar irregularity; 

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

9 there was a misuse of funds; 

10 ‘‘(vi) how any such cases of misuse of funds were 

11 dealt with by the Commissioner; 

12 ‘‘(vii) the final disposition of such cases of mis13 use of funds, including any criminal penalties im14 posed; and 

15 ‘‘(viii) such other information as the Commis16 sioner deems appropriate.’’. 

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

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

19 is amended further by adding at the end the fol20 lowing: 

21 ‘‘(k) PERIODIC ONSITE REVIEW.—

22 ‘‘(1) IN GENERAL.—In addition to such other re23 views of representative payees as the Commissioner of 

24 Social Security may otherwise conduct, the Commis25 sioner may provide for the periodic onsite review of 
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1 any person or agency that receives the benefits pay2 able under this title (alone or in combination with 

3 benefits payable under title II or title XVI) to another 

4 individual pursuant to the appointment of such per5 son or agency as a representative payee under this 

6 section, section 205(j), or section 1631(a)(2) in any 

7 case in which—

8 ‘‘(A) the representative payee is a person 

9 who serves in that capacity with respect to 15 or 

10 more such individuals; or 

11 ‘‘(B) the representative payee is an agency 

12 that serves in that capacity with respect to 50 or 

13 more such individuals. 

14 ‘‘(2) REPORT.—Within 120 days after the end of 

15 each fiscal year, the Commissioner shall submit to the 

16 Committee on Ways and Means of the House of Rep17 resentatives and the Committee on Finance of the 

18 Senate a report on the results of periodic onsite re19 views conducted during the fiscal year pursuant to 

20 paragraph (1) and of any other reviews of representa21 tive payees conducted during such fiscal year in con22 nection with benefits under this title. Each such re23 port shall describe in detail all problems identified in 

24 such reviews and any corrective action taken or 
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1 planned to be taken to correct such problems, and 

2 shall include—

3 ‘‘(A) the number of such reviews; 

4 ‘‘(B) the results of such reviews; 

5 ‘‘(C) the number of cases in which the rep6 resentative payee was changed and why; 

7 ‘‘(D) the number of cases involving the exer8 cise of expedited, targeted oversight of the rep9 resentative payee by the Commissioner conducted 

10 upon receipt of an allegation of misuse of funds, 

11 failure to pay a vendor, or a similar irregu12 larity; 

13 ‘‘(E) the number of cases discovered in 

14 which there was a misuse of funds; 

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

16 were dealt with by the Commissioner; 

17 ‘‘(G) the final disposition of such cases of 

18 misuse of funds, including any criminal pen19 alties imposed; and 

20 ‘‘(H) such other information as the Com21 missioner deems appropriate.’’. 

22 (3) TITLE XVI AMENDMENT.—Section 

23 1631(a)(2)(G) of such Act (42 U.S.C. 1383(a)(2)(G)) 

24 is amended to read as follows: 
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1 ‘‘(G)(i) In addition to such other reviews of representa2 tive payees as the Commissioner of Social Security may 

3 otherwise conduct, the Commissioner shall provide for the 

4 periodic onsite review of any person or agency that receives 

5 the benefits payable under this title (alone or in combina6 tion with benefits payable under title II or title VIII) to 

7 another individual pursuant to the appointment of the per8 son or agency as a representative payee under this para9 graph, section 205(j), or section 807 in any case in which—

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

11 serves in that capacity with respect to 15 or more 

12 such individuals; 

13 ‘‘(II) the representative payee is a certified com14 munity-based nonprofit social service agency (as de15 fined in subparagraph (I) of this paragraph or sec16 tion 205(j)(9)); or 

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

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

19 that serves in that capacity with respect to 50 or 

20 more such individuals. 

21 ‘‘(ii) Within 120 days after the end of each fiscal year, 

22 the Commissioner shall submit to the Committee on Ways 

23 and Means of the House of Representatives and the Com24 mittee on Finance of the Senate a report on the results of 

25 periodic onsite reviews conducted during the fiscal year
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1 pursuant to clause (i) and of any other reviews of represent2 ative payees conducted during such fiscal year in connec3 tion with benefits under this title. Each such report shall 

4 describe in detail all problems identified in the reviews and 

5 any corrective action taken or planned to be taken to correct 

6 the problems, and shall include—

7 ‘‘(I) the number of the reviews; 

8 ‘‘(II) the results of such reviews; 

9 ‘‘(III) the number of cases in which the rep10 resentative payee was changed and why; 

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

12 of expedited, targeted oversight of the representative 

13 payee by the Commissioner conducted upon receipt of 

14 an allegation of misuse of funds, failure to pay a ven15 dor, or a similar irregularity; 

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

17 there was a misuse of funds; 

18 ‘‘(VI) how any such cases of misuse of funds were 

19 dealt with by the Commissioner; 

20 ‘‘(VII) the final disposition of such cases of mis21 use of funds, including any criminal penalties im22 posed; and 

23 ‘‘(VIII) such other information as the Commis24 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 the 

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

9 (1) in subparagraph (B)(i)—

10 (A) by striking ‘‘and’’ at the end of sub11 clause (III); 

12 (B) by redesignating subclause (IV) as sub13 clause (VI); and 

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

15 following: 

16 ‘‘(IV) obtain information concerning whether 

17 such person has been convicted of any other offense 

18 under Federal or State law which resulted in impris19 onment for more than 1 year, 

20 ‘‘(V) obtain information concerning whether such 

21 person is a person described in section 

22 202(x)(1)(A)(iv), and’’; 

23 (2) in subparagraph (B), by adding at the end 

24 the following: 

25 ‘‘(iii) Notwithstanding the provisions of section 552a 

26 of title 5, United States Code, or any other provision of 
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1 Federal or State law (other than section 6103 of the Inter2 nal Revenue Code of 1986 and section 1106(c) of this Act), 

3 the Commissioner shall furnish any Federal, State, or local 

4 law enforcement officer, upon the written request of the offi5 cer, with the current address, social security account num6 ber, and photograph (if applicable) of any person inves7 tigated under this paragraph, if the officer furnishes the 

8 Commissioner with the name of such person and such other 

9 identifying information as may reasonably be required by 

10 the Commissioner to establish the unique identity of such 

11 person, and notifies the Commissioner that—

12 ‘‘(I) such person is described in section 

13 202(x)(1)(A)(iv), 

14 ‘‘(II) such person has information that is nec15 essary for the officer to conduct the officer’s official 

16 duties, and 

17 ‘‘(III) the location or apprehension of such per18 son is within the officer’s official duties.’’; 

19 (3) in subparagraph (C)(i)(II)—

20 (A) by striking ‘‘subparagraph (B)(i)(IV),,’’ 

21 and inserting ‘‘subparagraph (B)(i)(VI)’’; and 

22 (B) by striking ‘‘section 

23 1631(a)(2)(B)(ii)(IV)’’ and inserting ‘‘section 

24 1631(a)(2)(B)(ii)(VI)’’; and 

25 (4) in subparagraph (C)(i)—
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1 (A) by striking ‘‘or’’ at the end of subclause 

2 (II); 

3 (B) by striking the period at the end of sub4 clause (III) and inserting a comma; and 

5 (C) by adding at the end the following: 

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

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

8 Commissioner determines that such certification 

9 would be appropriate notwithstanding such convic10 tion, or 

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

12 202(x)(1)(A)(iv).’’. 

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

14 Act (42 U.S.C. 1007) is amended—

15 (1) in subsection (b)(2)—

16 (A) by striking ‘‘and’’ at the end of sub17 paragraph (C); 

18 (B) by redesignating subparagraph (D) as 

19 subparagraph (F); and 

20 (C) by inserting after subparagraph (C) the 

21 following: 

22 ‘‘(D) obtain information concerning whether 

23 such person has been convicted of any other of24 fense under Federal or State law which resulted 

25 in imprisonment for more than 1 year; 
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1 ‘‘(E) obtain information concerning whether 

2 such person is a person described in section 

3 804(a)(2); and’’; 

4 (2) in subsection (b), by adding at the end the 

5 following: 

6 ‘‘(3) Notwithstanding the provisions of section 

7 552a of title 5, United States Code, or any other pro8 vision of Federal or State law (other than section 

9 6103 of the Internal Revenue Code of 1986 and sec10 tion 1106(c) of this Act), the Commissioner shall fur11 nish any Federal, State, or local law enforcement offi12 cer, upon the written request of the officer, with the 

13 current address, social security account number, and 

14 photograph (if applicable) of any person investigated 

15 under this subsection, if the officer furnishes the Com16 missioner with the name of such person and such 

17 other identifying information as may reasonably be 

18 required by the Commissioner to establish the unique 

19 identity of such person, and notifies the Commis20 sioner that—

21 ‘‘(A) such person is described in section 

22 804(a)(2), 

23 ‘‘(B) such person has information that is 

24 necessary for the officer to conduct the officer’s 

25 official duties, and
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1 ‘‘(C) the location or apprehension of such 

2 person is within the officer’s official duties.’’; 

3 and 

4 (3) in subsection (d)(1)—

5 (A) by striking ‘‘or’’ at the end of subpara6 graph (B); 

7 (B) by striking the period at the end of sub8 paragraph (C) and inserting a semicolon; and 

9 (C) by adding at the end the following: 

10 ‘‘(D) such person has previously been con11 victed as described in subsection (b)(2)(D), un12 less the Commissioner determines that such pay13 ment would be appropriate notwithstanding such 

14 conviction; or 

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

16 section 804(a)(2).’’. 

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

18 of such Act (42 U.S.C. 1383(a)(2)(B)) is amended—

19 (1) in clause (ii)—

20 (A) by striking ‘‘and’’ at the end of sub21 clause (III);

22 (B) by redesignating subclause (IV) as sub23 clause (VI); and 

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

25 following: 
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1 ‘‘(IV) obtain information concerning whether the 

2 person has been convicted of any other offense under 

3 Federal or State law which resulted in imprisonment 

4 for more than 1 year; 

5 ‘‘(V) obtain information concerning whether such 

6 person is a person described in section 1611(e)(4)(A); 

7 and’’; 

8 (2) in clause (iii)(II)—

9 (A) by striking ‘‘clause (ii)(IV)’’ and insert10 ing ‘‘clause (ii)(VI)’’; and 

11 (B) by striking ‘‘section 

12 205(j)(2)(B)(i)(IV)’’ and inserting ‘‘section 

13 205(j)(2)(B)(i)(VI)’’; 

14 (3) in clause (iii)—

15 (A) by striking ‘‘or’’ at the end of subclause 

16 (II); 

17 (B) by striking the period at the end of sub18 clause (III) and inserting a semicolon; and 

19 (C) by adding at the end the following: 

20 ‘‘(IV) the person has previously been convicted as 

21 described in clause (ii)(IV) of this subparagraph, un22 less the Commissioner determines that the payment 

23 would be appropriate notwithstanding the conviction; 

24 or 
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1 ‘‘(V) such person is a person described in section 

2 1611(e)(4)(A).’’; and 

3 (4) by adding at the end the following: 

4 ‘‘(xiv) Notwithstanding the provisions of section 552a 

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

6 Federal or State law (other than section 6103 of the Inter7 nal Revenue Code of 1986 and section 1106(c) of this Act), 

8 the Commissioner shall furnish any Federal, State, or local 

9 law enforcement officer, upon the written request of the offi10 cer, with the current address, social security account num11 ber, and photograph (if applicable) of any person inves12 tigated under this subparagraph, if the officer furnishes the 

13 Commissioner with the name of such person and such other 

14 identifying information as may reasonably be required by 

15 the Commissioner to establish the unique identity of such 

16 person, and notifies the Commissioner that—

17 ‘‘(I) such person is described in section 

18 1611(e)(4)(A), 

19 ‘‘(II) such person has information that is nec20 essary for the officer to conduct the officer’s official 

21 duties, and 

22 ‘‘(III) the location or apprehension of such per23 son is within the officer’s official duties.’’. 
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1 (d) EFFECTIVE DATE.—The amendments made by this 

2 section shall take effect on the first day of the thirteenth 

3 month beginning after the date of the enactment of this Act. 

4 (e) REPORT TO CONGRESS.—The Commissioner of So5 cial Security, in consultation with the Inspector General 

6 of the Social Security Administration, shall prepare a re7 port evaluating whether the existing procedures and reviews 

8 for the qualification (including disqualification) of rep9 resentative payees are sufficient to enable the Commissioner 

10 to protect benefits from being misused by representative 

11 payees. The Commissioner shall submit the report to the 

12 Committee on Ways and Means of the House of Representa13 tives and the Committee on Finance of the Senate no later 

14 than 270 days after the date of the enactment of this Act. 

15 The Commissioner shall include in such report any rec16 ommendations that the Commissioner considers appro17 priate. 

18 SEC. 104. FEE FORFEITURE IN CASE OF BENEFIT MISUSE BY 

19 REPRESENTATIVE PAYEES. 

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

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

22 amended—

23 (1) in the first sentence, by striking ‘‘A’’ and in24 serting ‘‘Except as provided in the next sentence, a’’; 

25 and 
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1 (2) in the second sentence, by striking ‘‘The Sec2 retary’’ and inserting the following: ‘‘A qualified or3 ganization may not collect a fee from an individual 

4 for any month with respect to which the Commis5 sioner of Social Security or a court of competent ju6 risdiction has determined that the organization mis7 used all or part of the individual’s benefit, and any 

8 amount so collected by the qualified organization for 

9 such month shall be treated as a misused part of the 

10 individual’s benefit for purposes of paragraphs (5) 

11 and (6). The Commissioner’’. 

12 (b) TITLE XVI AMENDMENTS.—Section 

13 1631(a)(2)(D)(i) of such Act (42 U.S.C. 1383(a)(2)(D)(i)) 

14 is amended—

15 (1) in the first sentence, by striking ‘‘A’’ and in16 serting ‘‘Except as provided in the next sentence, a’’; 

17 and 

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

19 Commissioner’’ and inserting the following: ‘‘A quali20 fied organization may not collect a fee from an indi21 vidual for any month with respect to which the Com22 missioner of Social Security or a court of competent 

23 jurisdiction has determined that the organization 

24 misused all or part of the individual’s benefit, and 

25 any amount so collected by the qualified organization 
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1 for such month shall be treated as a misused part of 

2 the individual’s benefit for purposes of subparagraphs 

3 (E) and (F). The Commissioner’’. 

4 (c) EFFECTIVE DATE.—The amendments made by this 

5 section shall apply to any month involving benefit misuse 

6 by a representative payee in any case with respect to which 

7 the Commissioner of Social Security or a court of competent 

8 jurisdiction makes the determination of misuse after 180 

9 days after the date of the enactment of this Act. 

10 SEC. 105. LIABILITY OF REPRESENTATIVE PAYEES FOR MIS11 USED BENEFITS. 

12 (a) TITLE II AMENDMENTS.—Section 205(j) of the So13 cial Security Act (42 U.S.C. 405(j)) (as amended by sec14 tions 101 and 102) is amended further—

15 (1) by redesignating paragraphs (7), (8), and (9) 

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

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

18 by striking ‘‘paragraph (9)’’ and inserting ‘‘para19 graph (10)’’;

20 (3) in paragraph (6)(A)(ii), by striking ‘‘para21 graph (9)’’ and inserting ‘‘paragraph (10)’’; and 

22 (4) by inserting after paragraph (6) the fol23 lowing: 

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

25 court of competent jurisdiction determines that a represent-
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1 ative payee that is not a Federal, State, or local government 

2 agency has misused all or part of an individual’s benefit 

3 that was paid to such representative payee under this sub4 section, the representative payee shall be liable for the 

5 amount misused, and such amount (to the extent not repaid 

6 by the representative payee) shall be treated as an overpay7 ment of benefits under this title to the representative payee 

8 for all purposes of this Act and related laws pertaining to 

9 the recovery of such overpayments. Subject to subparagraph 

10 (B), upon recovering all or any part of such amount, the 

11 Commissioner shall certify an amount equal to the recov12 ered amount for payment to such individual or such indi13 vidual’s alternative representative payee. 

14 ‘‘(B) The total of the amount certified for payment to 

15 such individual or such individual’s alternative representa16 tive payee under subparagraph (A) and the amount cer17 tified for payment under paragraph (5) may not exceed the 

18 total benefit amount misused by the representative payee 

19 with respect to such individual.’’. 

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

21 (as amended by section 102(b)(2)) is amended further by 

22 adding at the end the following: 

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

24 ‘‘(1) IN GENERAL.—If the Commissioner of So25 cial Security or a court of competent jurisdiction de-
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1 termines that a representative payee that is not a 

2 Federal, State, or local government agency has mis3 used all or part of a qualified individual’s benefit 

4 that was paid to such representative payee under this 

5 section, the representative payee shall be liable for the 

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

7 repaid by the representative payee) shall be treated as 

8 an overpayment of benefits under this title to the rep9 resentative payee for all purposes of this Act and re10 lated laws pertaining to the recovery of such overpay11 ments. Subject to paragraph (2), upon recovering all 

12 or any part of such amount, the Commissioner shall 

13 make payment of an amount equal to the recovered 

14 amount to such qualified individual or such qualified 

15 individual’s alternative representative payee. 

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

17 to such individual or such individual’s alternative 

18 representative payee under paragraph (1) and the 

19 amount paid under subsection (i) may not exceed the 

20 total benefit amount misused by the representative 

21 payee with respect to such individual.’’. 

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

23 such Act (42 U.S.C. 1383(a)(2)) (as amended by section 

24 102(b)(3)) is amended further—
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1 (1) in subparagraph (G)(i)(II), by striking ‘‘sec2 tion 205(j)(9)’’ and inserting ‘‘section 205(j)(10)’’; 

3 and 

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

5 the following: 

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

7 court of competent jurisdiction determines that a represent8 ative payee that is not a Federal, State, or local government 

9 agency has misused all or part of an individual’s benefit 

10 that was paid to the representative payee under this para11 graph, the representative payee shall be liable for the 

12 amount misused, and the amount (to the extent not repaid 

13 by the representative payee) shall be treated as an overpay14 ment of benefits under this title to the representative payee 

15 for all purposes of this Act and related laws pertaining to 

16 the recovery of the overpayments. Subject to clause (ii), 

17 upon recovering all or any part of the amount, the Commis18 sioner shall make payment of an amount equal to the recov19 ered amount to such individual or such individual’s alter20 native representative payee. 

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

22 or such individual’s alternative representative payee under 

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

24 may not exceed the total benefit amount misused by the rep25 resentative payee with respect to such individual.’’. 
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1 (d) EFFECTIVE DATE.—The amendments made by this 

2 section shall apply to benefit misuse by a representative 

3 payee in any case with respect to which the Commissioner 

4 of Social Security or a court of competent jurisdiction 

5 makes the determination of misuse after 180 days after the 

6 date of the enactment of this Act. 

7 SEC. 106. AUTHORITY TO REDIRECT DELIVERY OF BENEFIT 

8 PAYMENTS WHEN A REPRESENTATIVE PAYEE 

9 FAILS TO PROVIDE REQUIRED ACCOUNTING. 

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

11 Social Security Act (42 U.S.C. 405(j)(3)) (as amended by 

12 sections 102(a)(1)(B) and 105(a)(2)) is amended—

13 (1) by redesignating subparagraphs (E) and (F) 

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

15 (2) by inserting after subparagraph (D) the fol16 lowing: 

17 ‘‘(E) In any case in which the person described in sub18 paragraph (A) or (D) receiving payments on behalf of an19 other fails to submit a report required by the Commissioner 

20 of Social Security under subparagraph (A) or (D), the 

21 Commissioner may, after furnishing notice to such person 

22 and the individual entitled to such payment, require that 

23 such person appear in person at a field office of the Social 

24 Security Administration serving the area in which the indi25 vidual resides in order to receive such payments.’’.
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1 (b) TITLE VIII AMENDMENTS.—Section 807(h) of such 

2 Act (42 U.S.C. 1007(h)) is amended—

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

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

5 (2) by inserting after paragraph (2) the fol6 lowing: 

7 ‘‘(3) AUTHORITY TO REDIRECT DELIVERY OF

8 BENEFIT PAYMENTS WHEN A REPRESENTATIVE PAYEE

9 FAILS TO PROVIDE REQUIRED ACCOUNTING.—In any 

10 case in which the person described in paragraph (1) 

11 or (2) receiving benefit payments on behalf of a quali12 fied individual fails to submit a report required by 

13 the Commissioner of Social Security under paragraph 

14 (1) or (2), the Commissioner may, after furnishing 

15 notice to such person and the qualified individual, re16 quire that such person appear in person at a United 

17 States Government facility designated by the Social 

18 Security Administration as serving the area in which 

19 the qualified individual resides in order to receive 

20 such benefit payments.’’. 

21 (c) TITLE XVI AMENDMENT.—Section 1631(a)(2)(C) 

22 of such Act (42 U.S.C. 1383(a)(2)(C)) is amended by add23 ing at the end the following: 

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

25 clause (i) or (iv) receiving payments on behalf of another 
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1 fails to submit a report required by the Commissioner of 

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

3 may, after furnishing notice to the person and the indi4 vidual entitled to the payment, require that such person ap5 pear in person at a field office of the Social Security Ad6 ministration serving the area in which the individual re7 sides in order to receive such payments.’’. 

8 (d) EFFECTIVE DATE.—The amendments made by this 

9 section shall take effect 180 days after the date of the enact10 ment of this Act. 

11 SEC. 107. SURVEY OF USE OF PAYMENTS BY REPRESENTA12 TIVE PAYEES. 

13 (a) IN GENERAL.—Section 1110 of the Social Security 

14 Act (42 U.S.C. 1310) is amended by adding at the end the 

15 following: 

16 ‘‘(c) Notwithstanding subsection (a)(1), of the amount 

17 appropriated to carry out that subsection for fiscal year 

18 2004, $17,800,000 of such amount shall be transferred and 

19 made available to the Inspector General of the Social Secu20 rity Administration for purposes of conducting a statis21 tically significant survey to determine how payments made 

22 to individuals, organizations, and State or local govern23 ment agencies that are representative payees for benefits 

24 paid under title II or XVI are being managed and used 

25 on behalf of the beneficiaries for whom such benefits are 
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1 paid. Not later than February 1, 2005, the Inspector Gen2 eral of the Social Security Administration shall submit a 

3 report on the survey conducted in accordance with this sub4 section to the Committee on Ways and Means of the House 

5 of Representatives and the Committee on Finance of the 

6 Senate.’’. 

7 Subtitle B—Enforcement 

8 SEC. 111. CIVIL MONETARY PENALTY AUTHORITY WITH RE9 SPECT TO WRONGFUL CONVERSIONS BY REP10 RESENTATIVE PAYEES. 

11 (a) IN GENERAL.—Section 1129(a) of the Social Secu12 rity Act (42 U.S.C. 1320a–8) is amended by adding at the 

13 end the following: 

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

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

16 capacity of a representative payee pursuant to section 

17 205(j), 807, or 1631(a)(2), a payment under title II, VIII, 

18 or XVI for the use and benefit of another individual, con19 verts such payment, or any part thereof, to a use that such 

20 person knows or should know is other than for the use and 

21 benefit of such other individual shall be subject to, in addi22 tion to any other penalties that may be prescribed by law, 

23 a civil money penalty of not more than $5,000 for each 

24 such conversion. Such person shall also be subject to an as25 sessment, in lieu of damages sustained by the United States 
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1 resulting from the conversion, of not more than twice the 

2 amount of any payments so converted.’’. 

3 (b) EFFECTIVE DATE.—The amendment made by this 

4 section shall apply with respect to violations committed 

5 after the date of the enactment of this Act. 

6 TITLE II—PROGRAM 

7 PROTECTIONS 

8 SEC. 201. CIVIL MONETARY PENALTY AUTHORITY WITH RE9 SPECT TO WITHHOLDING OF MATERIAL 

10 FACTS. 

11 (a) TREATMENT OF WITHHOLDING OF MATERIAL

12 FACTS.—

13 (1) CIVIL PENALTIES.—Section 1129(a)(1) of the 

14 Social Security Act (42 U.S.C. 1320a–8(a)(1)) is 

15 amended—

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

17 and inserting ‘‘who—’’; 

18 (B) by striking ‘‘makes’’ in the first sen19 tence and all that follows through ‘‘shall be sub20 ject to,’’ and inserting the following: 

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

22 representation of a material fact, for use in deter23 mining any initial or continuing right to or the 

24 amount of monthly insurance benefits under title II 

25 or benefits or payments under title VIII or XVI, that 
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1 the person knows or should know is false or mis2 leading, 

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

4 for such use with knowing disregard for the truth, or 

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

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

7 fact which the person knows or should know is mate8 rial to the determination of any initial or continuing 

9 right to or the amount of monthly insurance benefits 

10 under title II or benefits or payments under title VIII 

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

12 statement or representation with such omission is 

13 false or misleading or that the withholding of such 

14 disclosure is misleading, 

15 shall be subject to,’’; 

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

17 benefits or payments while withholding disclo18 sure of such fact’’ after ‘‘each such statement or 

19 representation’’ in the first sentence; 

20 (D) by inserting ‘‘or because of such with21 holding of disclosure of a material fact’’ after 

22 ‘‘because of such statement or representation’’ in 

23 the second sentence; and
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1 (E) by inserting ‘‘or such a withholding of 

2 disclosure’’ after ‘‘such a statement or represen3 tation’’ in the second sentence. 

4 (2) ADMINISTRATIVE PROCEDURE FOR IMPOSING

5 PENALTIES.—Section 1129A(a) of such Act (42 

6 U.S.C. 1320a–8a(a)) is amended—

7 (A) by striking ‘‘who’’ the first place it ap8 pears and inserting ‘‘who—’’; and 

9 (B) by striking ‘‘makes’’ and all that follows 

10 through ‘‘shall be subject to,’’ and inserting the 

11 following: 

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

13 representation of a material fact, for use in deter14 mining any initial or continuing right to or the 

15 amount of monthly insurance benefits under title II 

16 or benefits or payments under title XVI that the per17 son knows or should know is false or misleading, 

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

19 for such use with knowing disregard for the truth, or 

20 ‘‘(3) omits from a statement or representation for 

21 such use, or otherwise withholds disclosure of, a fact 

22 which the person knows or should know is material 

23 to the determination of any initial or continuing 

24 right to or the amount of monthly insurance benefits 

25 under title II or benefits or payments under title XVI, 
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1 if the person knows, or should know, that the state2 ment or representation with such omission is false or 

3 misleading or that the withholding of such disclosure 

4 is misleading, 

5 shall be subject to,’’. 

6 (b) CLARIFICATION OF TREATMENT OF RECOVERED

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

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

9 case of amounts recovered arising out of a determination 

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

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

12 (c) CONFORMING AMENDMENTS.—

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

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

15 ‘‘charging fraud or false statements’’. 

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

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

18 representations’’ and inserting ‘‘, representations, or 

19 actions’’. 

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

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

22 ‘‘statement or representation referred to in subsection 

23 (a) was made’’ and inserting ‘‘violation occurred’’. 

24 (d) EFFECTIVE DATE.—The amendments made by this 

25 section shall apply with respect to violations committed 
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1 after the date on which the Commissioner of Social Security 

2 implements the centralized computer file described in sec3 tion 202. 

4 SEC. 202. ISSUANCE BY COMMISSIONER OF SOCIAL SECU5 RITY OF RECEIPTS TO ACKNOWLEDGE SUB6 MISSION OF REPORTS OF CHANGES IN WORK 

7 OR EARNINGS STATUS OF DISABLED BENE8 FICIARIES. 

9 Effective as soon as possible, but not later than 1 year 

10 after the date of the enactment of this Act, until such time 

11 as the Commissioner of Social Security implements a cen12 tralized computer file recording the date of the submission 

13 of information by a disabled beneficiary (or representative) 

14 regarding a change in the beneficiary’s work or earnings 

15 status, the Commissioner shall issue a receipt to the disabled 

16 beneficiary (or representative) each time he or she submits 

17 documentation, or otherwise reports to the Commissioner, 

18 on a change in such status. 

19 SEC. 203. DENIAL OF TITLE II BENEFITS TO PERSONS FLEE20 ING PROSECUTION, CUSTODY, OR CONFINE21 MENT, AND TO PERSONS VIOLATING PROBA22 TION OR PAROLE. 

23 (a) IN GENERAL.—Section 202(x) of the Social Secu24 rity Act (42 U.S.C. 402(x)) is amended—
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1 (1) in the heading, by striking ‘‘Prisoners’’ and 

2 all that follows and inserting the following: ‘‘Pris3 oners, Certain Other Inmates of Publicly Funded In4 stitutions, Fugitives, Probationers, and Parolees’’; 

5 (2) in paragraph (1)(A)(ii)(IV), by striking ‘‘or’’ 

6 at the end; 

7 (3) in paragraph (1)(A)(iii), by striking the pe8 riod at the end and inserting a comma; 

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

10 following: 

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

12 or confinement after conviction, under the laws of the 

13 place from which the person flees, for a crime, or an 

14 attempt to commit a crime, which is a felony under 

15 the laws of the place from which the person flees, or, 

16 in jurisdictions that do not define crimes as felonies, 

17 is punishable by death or imprisonment for a term 

18 exceeding 1 year regardless of the actual sentence im19 posed, and a Federal, State, or local law enforcement 

20 agency has notified the Commissioner that such agen21 cy intends to pursue the individual by seeking arrest, 

22 extradition, or prosecution, or 

23 ‘‘(v) is violating a condition of probation or pa24 role imposed under Federal or State law, and a Fed25 eral, State, or local law enforcement agency has noti-
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1 fied the Commissioner that such agency intends to 

2 seek revocation of the individual’s probation or pa3 role. 

4 In the case of an individual from whom such monthly bene5 fits have been withheld pursuant to clause (iv) or (v), the 

6 Commissioner of Social Security may, for good cause 

7 shown, pay such withheld benefits to the individual.’’; and 

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

9 following: 

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

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

12 Federal or State law (other than section 6103 of the Inter13 nal Revenue Code of 1986 and section 1106(c) of this Act), 

14 the Commissioner shall furnish any Federal, State, or local 

15 law enforcement officer, upon the written request of the offi16 cer, with the current address, Social Security number, and 

17 photograph (if applicable) of any beneficiary under this 

18 title, if the officer furnishes the Commissioner with the 

19 name of the beneficiary, and other identifying information 

20 as reasonably required by the Commissioner to establish the 

21 unique identity of the beneficiary, and notifies the Commis22 sioner that—

23 ‘‘(i) the beneficiary is described in clause (iv) or 

24 (v) of paragraph (1)(A);
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1 ‘‘(ii) the Commissioner has information with re2 spect to the beneficiary that is necessary for the officer 

3 to conduct the officer’s official duties; and

4 ‘‘(iii) the location or apprehension of the bene5 ficiary is within the officer’s official duties.’’. 

6 (b) CONFORMING AMENDMENTS TO TITLE XVI.—Sec7 tion 1611(e) of the Social Security Act (42 U.S.C. 1382(e)) 

8 is amended—

9 (1) in paragraph (4)—

10 (A) in subparagraph (A), by striking ‘‘or 

11 which, in the case of the State of

12 New Jersey, is a high misdemeanor under the 

13 laws of such State’’ and inserting ‘‘or, in juris14 dictions that do not define crimes as felonies, is 

15 punishable by death or imprisonment for a term 

16 exceeding 1 year regardless of the actual sentence 

17 imposed, and a Federal, State, or local law en18 forcement agency has notified the Commissioner 

19 of Social Security that the agency intends to 

20 pursue the person by seeking arrest, extradition, 

21 or prosecution’’; 

22 (B) in subparagraph (B), by inserting ‘‘and 

23 a Federal, State, or local law enforcement agency 

24 has notified the Commissioner of Social Security 
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1 that the agency intends to seek revocation of the 

2 person’s probation or parole’’ after ‘‘law’’; and 

3 (C) by adding at the end the following sen4 tence after and below subparagraph (B): 

5 ‘‘In the case of an individual whose eligibility for a month 

6 or months has been suspended pursuant to subparagraph 

7 (A) or (B), the Commissioner of Social Security may, for 

8 good cause shown, restore such individual’s eligibility for 

9 all such months.’’; and 

10 (2) in paragraph (5), by striking subparagraphs 

11 (A) and (B) and inserting the following: 

12 ‘‘(A) the recipient is described in subparagraph 

13 (A) or (B) of paragraph (4); 

14 ‘‘(B) the Commissioner has information with re15 spect to the recipient that is necessary for the officer 

16 to conduct the officer’s official duties; and 

17 ‘‘(C) the location or apprehension of the recipient 

18 is within the officer’s official duties.’’. 

19 (c) CONFORMING AMENDMENT.—Section 804(a)(2) of 

20 the Social Security Act (42 U.S.C. 1004(a)(2)) is amended 

21 by striking ‘‘or which, in the case of the State of New Jersey, 

22 is a high misdemeanor under the laws of such State’’ and 

23 inserting ‘‘or, in jurisdictions that do not define crimes as 

24 felonies, is punishable by death or imprisonment for a term 

25 exceeding 1 year regardless of the actual sentence imposed’’. 
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1 (d) REGULATIONS.—Not later than the first day of the 

2 first month that begins on or after the date that is 9 months 

3 after the date of the enactment of this Act, the Commissioner 

4 of Social Security shall promulgate regulations governing 

5 payment by the Commissioner, for good cause shown, of 

6 withheld benefits pursuant to the last sentences of sections 

7 202(x)(1)(A) and 1611(e)(4) of the Social Security Act (as 

8 amended by subsections (a) and (b), respectively). 

9 (e) EFFECTIVE DATE.—The amendments made by sub10 section (a) shall take effect on the first day of the first 

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

12 after the date of the enactment of this Act. 

13 SEC. 204. REQUIREMENTS RELATING TO OFFERS TO PRO14 VIDE FOR A FEE A PRODUCT OR SERVICE 

15 AVAILABLE WITHOUT CHARGE FROM THE SO16 CIAL SECURITY ADMINISTRATION. 

17 (a) IN GENERAL.—Section 1140 of the Social Security 

18 Act (42 U.S.C. 1320b–10) is amended—

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

20 following: 

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

22 individual to obtain a product or service that the person 

23 knows or should know is provided free of charge by the So24 cial Security Administration unless, at the time the offer 
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1 is made, the person provides to the individual to whom the 

2 offer is tendered a notice that—

3 ‘‘(i) explains that the product or service is avail4 able free of charge from the Social Security Adminis5 tration, and 

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

7 Commissioner of Social Security respecting the con8 tent of such notice and its placement, visibility, and 

9 legibility. 

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

11 ‘‘(i) to serve as a claimant representative in con12 nection with a claim arising under title II, title VIII, 

13 or title XVI; or 

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

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

16 title XVI.’’; and 

17 (2) in the heading, by striking ‘‘PROHIBITION OF

18 MISUSE OF SYMBOLS, EMBLEMS, OR NAMES IN REF19 ERENCE’’ and inserting ‘‘PROHIBITIONS RELATING TO

20 REFERENCES’’. 

21 (b) EFFECTIVE DATE.—The amendments made by this 

22 section shall apply to offers of assistance made after the 

23 sixth month ending after the Commissioner of Social Secu24 rity promulgates final regulations prescribing the stand25 ards applicable to the notice required to be provided in con-
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1 nection with such offer. The Commissioner shall promul2 gate such final regulations within 1 year after the date of 

3 the enactment of this Act. 

4 SEC. 205. REFUSAL TO RECOGNIZE CERTAIN INDIVIDUALS 

5 AS CLAIMANT REPRESENTATIVES. 

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

7 U.S.C. 406(a)(1)) is amended by inserting after the second 

8 sentence the following: ‘‘Notwithstanding the preceding sen9 tences, the Commissioner, after due notice and opportunity 

10 for hearing, (A) may refuse to recognize as a representative, 

11 and may disqualify a representative already recognized, 

12 any attorney who has been disbarred or suspended from any 

13 court or bar to which he or she was previously admitted 

14 to practice or who has been disqualified from participating 

15 in or appearing before any Federal program or agency, and 

16 (B) may refuse to recognize, and may disqualify, as a non17 attorney representative any attorney who has been dis18 barred or suspended from any court or bar to which he or 

19 she was previously admitted to practice. A representative 

20 who has been disqualified or suspended pursuant to this sec21 tion from appearing before the Social Security Administra22 tion as a result of collecting or receiving a fee in excess 

23 of the amount authorized shall be barred from appearing 

24 before the Social Security Administration as a representa25 tive until full restitution is made to the claimant and,
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1 thereafter, may be considered for reinstatement only under 

2 such rules as the Commissioner may prescribe.’’. 

3 SEC. 206. CRIMINAL PENALTY FOR CORRUPT OR FORCIBLE 

4 INTERFERENCE WITH ADMINISTRATION OF 

5 SOCIAL SECURITY ACT. 

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

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

8 1129A the following: 

9 ‘‘ATTEMPTS TO INTERFERE WITH ADMINISTRATION OF

10 SOCIAL SECURITY ACT

11 ‘‘SEC. 1129B. Whoever corruptly or by force or threats 

12 of force (including any threatening letter or communica13 tion) attempts to intimidate or impede any officer, em14 ployee, or contractor of the Social Security Administration 

15 (including any State employee of a disability determina16 tion service or any other individual designated by the Com17 missioner of Social Security) acting in an official capacity 

18 to carry out a duty under this Act, or in any other way 

19 corruptly or by force or threats of force (including any 

20 threatening letter or communication) obstructs or impedes, 

21 or attempts to obstruct or impede, the due administration 

22 of this Act, shall be guilty of a felony and upon conviction 

23 thereof shall be fined not more than $5,000, imprisoned not 

24 more than 3 years, or both, except that if the offense is com25 mitted only by threats of force, the person shall be guilty 

26 of a felony and upon conviction thereof shall be fined not 
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1 more than $3,000, imprisoned not more than 1 year, or 

2 both. In this subsection, the term ‘threats of force’ means 

3 threats of harm to the officer or employee of the United 

4 States or to a contractor of the Social Security Administra5 tion, or to a member of the family of such an officer or 

6 employee or contractor.’’. 

7 SEC. 207. USE OF SYMBOLS, EMBLEMS, OR NAMES IN REF8 ERENCE TO SOCIAL SECURITY OR MEDICARE. 

9 (a) IN GENERAL.—Section 1140(a)(1) of the Social Se10 curity Act (42 U.S.C. 1320b–10(a)(1)) is amended—

11 (1) in subparagraph (A), by inserting ‘‘ ‘Centers 

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

13 Care Financing Administration’,’’, by striking ‘‘or 

14 ‘Medicaid’, ’’ and inserting ‘‘ ‘Medicaid’, ‘Death Bene15 fits Update’, ‘Federal Benefit Information’, ‘Funeral 

16 Expenses’, or ‘Final Supplemental Plan’,’’ and by in17 serting ‘‘ ‘CMS’,’’ after ‘‘ ‘HCFA’,’’; 

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

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

20 Care Financing Administration,’’ each place it ap21 pears; and 

22 (3) in the matter following subparagraph (B), by 

23 striking ‘‘the Health Care Financing Administra24 tion,’’ each place it appears and inserting ‘‘the Cen25 ters for Medicare & Medicaid Services,’’.
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1 (b) EFFECTIVE DATE.—The amendments made by this 

2 section shall apply to items sent after 180 days after the 

3 date of the enactment of this Act. 

4 SEC. 208. DISQUALIFICATION FROM PAYMENT DURING 

5 TRIAL WORK PERIOD UPON CONVICTION OF 

6 FRAUDULENT CONCEALMENT OF WORK AC7 TIVITY. 

8 (a) IN GENERAL.—Section 222(c) of the Social Secu9 rity Act (42 U.S.C. 422(c)) is amended by adding at the 

10 end the following: 

11 ‘‘(5) Upon conviction by a Federal court that an indi12 vidual has fraudulently concealed work activity during a 

13 period of trial work from the Commissioner of Social Secu14 rity by—

15 ‘‘(A) providing false information to the Commis16 sioner of Social Security as to whether the individual 

17 had earnings in or for a particular period, or as to 

18 the amount thereof; 

19 ‘‘(B) receiving disability insurance benefits 

20 under this title while engaging in work activity under 

21 another identity, including under another social secu22 rity account number or a number purporting to be a 

23 social security account number; or 

24 ‘‘(C) taking other actions to conceal work activ25 ity with an intent fraudulently to secure payment in 
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1 a greater amount than is due or when no payment 

2 is authorized, 

3 no benefit shall be payable to such individual under this 

4 title with respect to a period of disability for any month 

5 before such conviction during which the individual rendered 

6 services during the period of trial work with respect to 

7 which the fraudulently concealed work activity occurred, 

8 and amounts otherwise due under this title as restitution, 

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

10 all cases be in addition to any amounts for which such indi11 vidual is liable as overpayments by reason of such conceal12 ment.’’. 

13 (b) EFFECTIVE DATE.—The amendment made by sub14 section (a) shall apply with respect to work activity per15 formed after the date of the enactment of this Act. 

16 SEC. 209. AUTHORITY FOR JUDICIAL ORDERS OF RESTITU17 TION. 

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

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

20 (1) by redesignating subsections (b), (c), and (d) 

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

22 (2) by inserting after subsection (a) the fol23 lowing: 

24 ‘‘(b) Any Federal court, when sentencing a defendant 

25 convicted of an offense under subsection (a) that results in 
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1 the Commissioner of Social Security making a benefit pay2 ment (or an increase in such a payment) that should not 

3 have been made, shall consider the Commissioner of Social 

4 Security a victim of the crime.’’. 

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

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

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

8 where’’ and inserting the following: 

9 ‘‘(i) RESTITUTION.—

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

11 (2) by adding at the end the following: 

12 ‘‘(2) SSA TREATED AS A VICTIM.—Any Federal 

13 court, when sentencing a defendant convicted of an of14 fense that results in the Commissioner of Social Secu15 rity making a benefit payment (or an increase in 

16 such a payment) that should not have been made, 

17 shall consider the Commissioner of Social Security a 

18 victim of the crime.’’. 

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

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

21 (1) by redesignating subsection (b) as subsection 

22 (c); and 

23 (2) by inserting after subsection (a) the fol24 lowing:
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1 ‘‘(b) Any Federal court, when sentencing a defendant 

2 convicted of an offense under subsection (a) that results in 

3 the Commissioner of Social Security making a benefit pay4 ment (or an increase in such a payment) that should not 

5 have been made, shall consider the Commissioner of Social 

6 Security a victim of the crime.’’. 

7 (d) SPECIAL ACCOUNT FOR RECEIPT OF RESTITUTION

8 PAYMENTS.—Section 704(b) of such Act (42 U.S.C. 904(b)) 

9 is amended by adding at the end the following: 

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 estab14 lished in the Treasury of the United States for amounts so 

15 received or recovered. The amounts so credited, to the extent 

16 and in the amounts provided in advance in appropriations 

17 Acts, shall be available to defray expenses incurred in car18 rying 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 with 

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

25 transferred to the Managing Trustee of the Federal Old-Age 
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1 and Survivors Insurance Trust Fund or the Federal Dis2 ability Insurance Trust Fund, as determined appropriate 

3 by the Commissioner of Social Security, and such amounts 

4 shall be deposited by the Managing Trustee into such Trust 

5 Fund. All other such amounts shall be deposited by the 

6 Commissioner into the general fund of the Treasury as mis7 cellaneous receipts.’’. 

8 (e) EFFECTIVE DATE.—The amendments made by sub9 sections (a), (b), and (c) shall apply with respect to viola10 tions occurring on or after the date of the enactment of this 

11 Act. 

12 SEC. 210. INFORMATION FOR ADMINISTRATION OF PROVI13 SIONS RELATED TO NONCOVERED EMPLOY14 MENT. 

15 (a) COLLECTION.—Paragraph (2) of section 6047(d) of 

16 the Internal Revenue Code of 1986 (relating to reports by 

17 employers, plan administrators, etc.) is amended by adding 

18 at the end the following new sentence: ‘‘In the case of any 

19 employer deferred compensation plan (as defined in section 

20 3405(e)(5)) of a State, a political subdivision thereof, or 

21 any agency or instrumentality of either, the Secretary shall 

22 in such forms or regulations require the identification of 

23 any designated distribution (as so defined) if paid to any 

24 participant or beneficiary of such plan based in whole or 

25 in part upon an individual’s earnings for service in the 
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1 employ of any such governmental entity which did not con2 stitute employment (as defined in section 3121(b)).’’. 

3 (b) DISCLOSURE.—Section 6103(l)(1) of the Internal 

4 Revenue Code of 1986 (relating to disclosure of certain re5 turns and return information to Social Security Adminis6 tration and Railroad Retirement Board) is amended—

7 (1) in subparagraph (B), by striking ‘‘and’’; and 

8 (2) in subparagraph (C), by striking the period 

9 and inserting ‘‘; and’’; and 

10 (3) by adding at the end the following: 

11 ‘‘(D) any designated distribution described 

12 in the second sentence of section 6047(d)(2) to 

13 the Social Security Administration for purposes 

14 of its administration of the Social Security 

15 Act.’’. 

16 (c) EFFECTIVE DATE.—The amendments made by this 

17 section shall apply to distributions made after December 31, 

18 2003. 

19 SEC. 211. AUTHORITY FOR CROSS-PROGRAM RECOVERY OF 

20 BENEFIT OVERPAYMENTS. 

21 (a) IN GENERAL.—Section 1147 of the Social Security 

22 Act (42 U.S.C. 1320b–17) is amended to read as follows: 

23 ‘‘CROSS-PROGRAM RECOVERY OF OVERPAYMENTS FROM

24 BENEFITS

25 ‘‘(a) IN GENERAL.—Subject to subsection (b), whenever 

26 the Commissioner of Social Security determines that more 
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1 than the correct amount of any payment has been made 

2 to a person under a program described in subsection (e), 

3 the Commissioner of Social Security may recover the 

4 amount incorrectly paid by decreasing any amount which 

5 is payable to such person under any other program speci6 fied in that subsection. 

7 ‘‘(b) LIMITATION APPLICABLE TO CURRENT BENE8 FITS.—

9 ‘‘(1) IN GENERAL.—In carrying out subsection 

10 (a), the Commissioner of Social Security may not de11 crease the monthly amount payable to an individual 

12 under a program described in subsection (e) that is 

13 paid when regularly due—

14 ‘‘(A) in the case of benefits under title II or 

15 VIII, by more than 10 percent of the amount of 

16 the benefit payable to the person for that month 

17 under such title; and 

18 ‘‘(B) in the case of benefits under title XVI, 

19 by an amount greater than the lesser of—

20 ‘‘(i) the amount of the benefit payable 

21 to the person for that month; or 

22 ‘‘(ii) an amount equal to 10 percent of 

23 the person’s income for that month (includ24 ing such monthly benefit but excluding pay25 ments under title II when recovery is also 
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1 made from title II payments and excluding 

2 income excluded pursuant to section 

3 1612(b)). 

4 ‘‘(2) EXCEPTION.—Paragraph (1) shall not 

5 apply if—

6 ‘‘(A) the person or the spouse of the person 

7 was involved in willful misrepresentation or con8 cealment of material information in connection 

9 with the amount incorrectly paid; or 

10 ‘‘(B) the person so requests. 

11 ‘‘(c) NO EFFECT ON ELIGIBILITY OR BENEFIT AMOUNT

12 UNDER TITLE VIII OR XVI.—In any case in which the 

13 Commissioner of Social Security takes action in accordance 

14 with subsection (a) to recover an amount incorrectly paid 

15 to any person, neither that person, nor (with respect to the 

16 program described in subsection (e)(3)) any individual 

17 whose eligibility for benefits under such program or whose 

18 amount of such benefits, is determined by considering any 

19 part of that person’s income, shall, as a result of such ac20 tion—

21 ‘‘(1) become eligible for benefits under the pro22 gram described in paragraph (2) or (3) of subsection 

23 (e); or
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1 ‘‘(2) if such person or individual is otherwise so 

2 eligible, become eligible for increased benefits under 

3 such program. 

4 ‘‘(d) INAPPLICABILITY OF PROHIBITION AGAINST AS5 SESSMENT AND LEGAL PROCESS.—Section 207 shall not 

6 apply to actions taken under the provisions of this section 

7 to decrease amounts payable under titles II and XVI. 

8 ‘‘(e) PROGRAMS DESCRIBED.—The programs described 

9 in this subsection are the following: 

10 ‘‘(1) The old-age, survivors, and disability insur11 ance benefits program under title II. 

12 ‘‘(2) The special benefits for certain World War 

13 II veterans program under title VIII. 

14 ‘‘(3) The supplemental security income benefits 

15 program under title XVI (including, for purposes of 

16 this section, State supplementary payments paid by 

17 the Commissioner pursuant to an agreement under 

18 section 1616(a) of this Act or section 212(b) of Public 

19 Law 93–66).’’. 

20 (b) CONFORMING AMENDMENTS.—

21 (1) Section 204(g) of the Social Security Act (42 

22 U.S.C. 404(g)) is amended to read as follows: 

23 ‘‘(g) For provisions relating to the cross-program re24 covery of overpayments made under programs administered 

25 by the Commissioner of Social Security, see section 1147.’’. 
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1 (2) Section 808 of the Social Security Act (42 

2 U.S.C. 1008) is amended—

3 (A) in subsection (a)(1)—

4 (i) by striking subparagraph (B); 

5 (ii) in the matter preceding subpara6 graph (A), by striking ‘‘any payment’’ and 

7 all that follows through ‘‘under this title’’ 

8 and inserting ‘‘any payment under this 

9 title’’; and 

10 (iii) by striking ‘‘; or’’ and inserting a 

11 period; 

12 (B) by striking subsection (b) and redesig13 nating subsections (c), (d), and (e) as subsections 

14 (b), (c), and (d), respectively; and 

15 (C) by adding at the end the following: 

16 ‘‘(e) CROSS-PROGRAM RECOVERY OF OVERPAY17 MENTS.—For provisions relating to the cross-program re18 covery of overpayments made under programs administered 

19 by the Commissioner of Social Security, see section 1147.’’. 

20 (3) Section 1147A of the Social Security Act (42 

21 U.S.C. 1320b–18) is repealed. 

22 (4) Section 1631(b) of the Social Security Act 

23 (42 U.S.C. 1383(b)) is amended—

24 (A) in paragraph (1)(B)—
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1 (i) by striking ‘‘excluding any other’’ 

2 and inserting ‘‘excluding payments under 

3 title II when recovery is made from title II 

4 payments pursuant to section 1147 and ex5 cluding’’; and 

6 (ii) by striking ‘‘50 percent of’’; and 

7 (B) by striking paragraph (6) and inserting 

8 the following: 

9 ‘‘(6) For provisions relating to the cross-program re10 covery of overpayments made under programs administered 

11 by the Commissioner of Social Security, see section 1147.’’. 

12 (c) EFFECTIVE DATE.—The amendments and repeal 

13 made by this section shall take effect on the date of enact14 ment of this Act, and shall be effective with respect to over15 payments under titles II, VIII, and XVI of the Social Secu16 rity Act that are outstanding on or after such date. 

17 SEC. 212. PROHIBITION ON PAYMENT OF TITLE II BENEFITS 

18 TO PERSONS NOT AUTHORIZED TO WORK IN 

19 THE UNITED STATES. 

20 (a) FULLY INSURED AND CURRENTLY INSURED INDI21 VIDUALS.—Section 214 (42 U.S.C. 414) is amended—

22 (1) in subsection (a), by inserting before the pe23 riod at the end the following: ‘‘, and who satisfies the 

24 criterion specified in subsection (c)’’; 
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1 (2) in subsection (b), by inserting before the pe2 riod at the end the following: ‘‘, and who satisfies the 

3 criterion specified in subsection (c)’’; and 

4 (3) by adding at the end the following: 

5 ‘‘(c) For purposes of subsections (a) and (b), the cri6 terion specified in this subsection is that the individual, 

7 if not a United States citizen or national, has been assigned 

8 a social security account number that was, at the time of 

9 assignment, or at any later time, consistent with the re10 quirements of subclause (I) or (III) of section 

11 205(c)(2)(B)(i).’’. 

12 (b) DISABILITY BENEFITS.—Section 223(a)(1) of the 

13 Social Security Act (42 U.S.C. 423(a)(1)) is amended—

14 (1) by redesignating subparagraphs (C) and (D) 

15 as subparagraphs (D) and (E), respectively; and 

16 (2) by inserting after subparagraph (B), the fol17 lowing: 

18 ‘‘(C) if not a United States citizen or national, 

19 has been assigned a social security account number 

20 that was, at the time of assignment, or at any later 

21 time, consistent with the requirements of subclause (I) 

22 or (III) of section 205(c)(2)(B)(i),’’. 

23 (c) EFFECTIVE DATE.—The amendments made by this 

24 section apply to benefit applications filed on or after Janu25 ary 1, 2004. 
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1 TITLE III—ATTORNEY REP2 RESENTATIVE FEE PAYMENT 

3 SYSTEM IMPROVEMENTS 

4 SEC. 301. CAP ON ATTORNEY ASSESSMENTS. 

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

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

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

8 amount of the assessment may not exceed the greater 

9 of $75 or the adjusted amount as provided pursuant 

10 to the following two sentences’’ after ‘‘subparagraph 

11 (B)’’; and 

12 (2) by adding at the end the following: ‘‘In the 

13 case of any calendar year beginning after the amend14 ments made by section 301 of the Social Security 

15 Protection Act of 2003 take effect, the dollar amount 

16 specified in the preceding sentence (including a pre17 viously adjusted amount) shall be adjusted annually 

18 under the procedures used to adjust benefit amounts 

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

20 shall be based on the higher of $75 or the previously 

21 adjusted amount that would have been in effect for 

22 December of the preceding year, but for the rounding 

23 of such amount pursuant to the following sentence. 

24 Any amount so adjusted that is not a multiple of $1
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1 shall be rounded to the next lowest multiple of $1, 

2 but in no case less than $75.’’. 

3 (b) EFFECTIVE DATE.—The amendments made by this 

4 section shall apply with respect to fees for representation 

5 of claimants which are first required to be certified or paid 

6 under section 206 of the Social Security Act on or after 

7 the first day of the first month that begins after 180 days 

8 after the date of the enactment of this Act. 

9 SEC. 302. GAO STUDY REGARDING FEE PAYMENT PROCESS 

10 FOR CLAIMANT REPRESENTATIVES. 

11 (a) STUDY.—

12 (1) IN GENERAL.—The Comptroller General of 

13 the United States shall study and evaluate the ap14 pointment and payment of claimant representatives 

15 under titles II and XVI of the Social Security Act (42 

16 U.S.C. 401 et seq., 1381 et seq.). 

17 (2) CONSULTATION REQUIRED.—The Comptroller 

18 General shall consult with beneficiaries under title II 

19 of such Act, beneficiaries under title XVI of such Act, 

20 claimant representatives of beneficiaries under such 

21 titles, and other interested parties, in conducting the 

22 study and evaluation required under paragraph (1). 

23 (b) REPORT.—Not later than 2 years after the date 

24 of enactment of this Act, the Comptroller General shall sub25 mit to the Committee on Ways and Means of the House 
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1 of Representatives and the Committee on Finance of the 

2 Senate a report that includes the following: 

3 (1) A survey of the relevant characteristics of 

4 claimant representatives that provides statistically 

5 significant results for characteristics which include 

6 (but are not limited to)—

7 (A) qualifications and experience; 

8 (B) the type of employment of such rep9 resentatives, such as with an advocacy group, 

10 State or local government, or insurance or other 

11 company; 

12 (C) geographical distribution between urban 

13 and rural areas; 

14 (D) the nature of claimants’ cases, such as 

15 whether the cases are for disability insurance 

16 benefits only, supplemental security income bene17 fits only, or concurrent benefits; 

18 (E) the relationship of such representatives 

19 to claimants, such as whether the representative 

20 is a friend, family member, or client of the 

21 claimant; and 

22 (F) the amount of compensation (if any) 

23 paid to the representatives and the method of 

24 payment of such compensation. 
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1 (2) An assessment of the quality and effectiveness 

2 of the services provided by claimant representatives, 

3 including a comparison of claimant satisfaction or 

4 complaints and benefit outcomes, adjusted for dif5 ferences in representatives’ caseload, claimants’ diag6 nostic group, level of decision, and other relevant fac7 tors. 

8 (3) An assessment of the costs and benefits of the 

9 appointment and payment of representatives with re10 spect to claimant satisfaction or complaints, benefit 

11 outcomes, and program administration. 

12 (4) An assessment of the potential results, in13 cluding the effect on claimants and program adminis14 tration, of extending to title XVI of the Social Secu15 rity Act the fee withholding procedures which apply 

16 under title II of that Act and of allowing non-attor17 ney representatives to be subject to any fee with18 holding procedures applicable under title II and XVI 

19 of such Act, and whether the rules and procedures em20 ployed by the Commissioner of Social Security to 

21 evaluate the qualifications and performance of claim22 ant representatives should be revised prior to any ex23 tensions of fee withholding. 
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1 TITLE IV—MISCELLANEOUS AND 

2 TECHNICAL AMENDMENTS 

3 Subtitle A—Amendments Relating 

4 to the Ticket to Work and Work 

5 Incentives Improvement Act of 

6 1999

7 SEC. 401. ELIMINATION OF DEMONSTRATION AUTHORITY 

8 SUNSET DATE. 

9 Section 234(d)(2) of the Social Security Act (42 

10 U.S.C. 434(d)(2)) is amended—

11 (1) in the paragraph heading, by striking ‘‘TER12 MINATION AND FINAL’’ and inserting ‘‘FINAL’’; and 

13 (2) by striking the first sentence.

14 SEC. 402. EXPANSION OF WAIVER AUTHORITY AVAILABLE 

15 IN CONNECTION WITH DEMONSTRATION 

16 PROJECTS PROVIDING FOR REDUCTIONS IN 

17 DISABILITY INSURANCE BENEFITS BASED ON 

18 EARNINGS. 

19 Section 302(c) of the Ticket to Work and Work Incen20 tives Improvement Act of 1999 (42 U.S.C. 434 note) is 

21 amended by striking ‘‘(42 U.S.C. 401 et seq.),’’ and insert22 ing ‘‘(42 U.S.C. 401 et seq.) and the requirements of section 

23 1148 of such Act (42 U.S.C. 1320b–19) as they relate to 

24 the program established under title II of such Act,’’. 
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1 SEC. 403. FUNDING OF DEMONSTRATION PROJECTS PRO2 VIDING FOR REDUCTIONS IN DISABILITY IN3 SURANCE BENEFITS BASED ON EARNINGS. 

4 Section 302(f) of the Ticket to Work and Work Incen5 tives Improvement Act of 1999 (42 U.S.C. 434 note) is 

6 amended to read as follows: 

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

8 demonstration projects under this section shall be paid from 

9 funds available for the administration of title II or XVIII 

10 of the Social Security Act, as appropriate. Benefits payable 

11 to or on behalf of individuals by reason of participation 

12 in projects under this section shall be made from the Federal 

13 Disability Insurance Trust Fund and the Federal Old-Age 

14 and Survivors Insurance Trust Fund, as determined appro15 priate by the Commissioner of Social Security, and from 

16 the Federal Hospital Insurance Trust Fund and the Federal 

17 Supplementary Medical Insurance Trust Fund, as deter18 mined appropriate by the Secretary of Health and Human 

19 Services, from funds available for benefits under such title 

20 II or XVIII.’’. 

21 SEC. 404. AVAILABILITY OF FEDERAL AND STATE WORK IN22 CENTIVE SERVICES TO ADDITIONAL INDIVID23 UALS. 

24 (a) FEDERAL WORK INCENTIVES OUTREACH PRO25 GRAM.—
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1 (1) IN GENERAL.—Section 1149(c)(2) of the So2 cial Security Act (42 U.S.C. 1320b–20(c)(2)) is 

3 amended to read as follows: 

4 ‘‘(2) DISABLED BENEFICIARY.—The term ‘dis5 abled beneficiary’ means an individual—

6 ‘‘(A) who is a disabled beneficiary as de7 fined in section 1148(k)(2) of this Act; 

8 ‘‘(B) who is receiving a cash payment de9 scribed in section 1616(a) of this Act or a sup10 plementary payment described in section 

11 212(a)(3) of Public Law 93–66 (without regard 

12 to whether such payment is paid by the Commis13 sioner pursuant to an agreement under section 

14 1616(a) of this Act or under section 212(b) of 

15 Public Law 93–66); 

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

17 this Act, is considered to be receiving benefits 

18 under title XVI of this Act; or 

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

20 A of title XVIII of this Act by reason of the pe21 nultimate sentence of section 226(b) of this Act.’’. 

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

23 this subsection shall apply with respect to grants, co24 operative agreements, or contracts entered into on or 

25 after the date of the enactment of this Act. 
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1 (b) STATE GRANTS FOR WORK INCENTIVES ASSIST2 ANCE.—

3 (1) DEFINITION OF DISABLED BENEFICIARY.—

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

5 21(g)(2)) is amended to read as follows: 

6 ‘‘(2) DISABLED BENEFICIARY.—The term ‘dis7 abled beneficiary’ means an individual—

8 ‘‘(A) who is a disabled beneficiary as de9 fined in section 1148(k)(2) of this Act; 

10 ‘‘(B) who is receiving a cash payment de11 scribed in section 1616(a) of this Act or a sup12 plementary payment described in section 

13 212(a)(3) of Public Law 93–66 (without regard 

14 to whether such payment is paid by the Commis15 sioner pursuant to an agreement under section 

16 1616(a) of this Act or under section 212(b) of 

17 Public Law 93–66); 

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

19 this Act, is considered to be receiving benefits 

20 under title XVI of this Act; or 

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

22 A of title XVIII of this Act by reason of the pe23 nultimate sentence of section 226(b) of this Act.’’. 

24 (2) ADVOCACY OR OTHER SERVICES NEEDED TO

25 MAINTAIN GAINFUL EMPLOYMENT.—Section 
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1 1150(b)(2) of such Act (42 U.S.C. 1320b–21(b)(2)) is 

2 amended by striking ‘‘secure or regain’’ and inserting 

3 ‘‘secure, maintain, or regain’’. 

4 (3) EFFECTIVE DATE.—The amendments made 

5 by this subsection shall apply with respect to pay6 ments provided after the date of the enactment of this 

7 Act. 

8 SEC. 405. TECHNICAL AMENDMENT CLARIFYING TREAT9 MENT FOR CERTAIN PURPOSES OF INDI10 VIDUAL WORK PLANS UNDER THE TICKET TO 

11 WORK AND SELF-SUFFICIENCY PROGRAM. 

12 (a) IN GENERAL.—Section 1148(g)(1) of the Social Se13 curity Act (42 U.S.C. 1320b–19(g)(1)) is amended by add14 ing at the end, after and below subparagraph (E), the fol15 lowing: 

16 ‘‘An individual work plan established pursuant to 

17 this subsection shall be treated, for purposes of section 

18 51(d)(6)(B)(i) of the Internal Revenue Code of 1986, 

19 as an individualized written plan for employment 

20 under a State plan for vocational rehabilitation serv21 ices approved under the Rehabilitation Act of 1973.’’. 

22 (b) EFFECTIVE DATE.—The amendment made by sub23 section (a) shall take effect as if included in section 505 

24 of the Ticket to Work and Work Incentives Improvement 

25 Act of 1999 (Public Law 106–170; 113 Stat. 1921). 
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1 SEC. 406. GAO STUDY REGARDING THE TICKET TO WORK 

2 AND SELF-SUFFICIENCY PROGRAM. 

3 (a) GAO REPORT.—Not later than 12 months after the 

4 date of enactment of this Act, the Comptroller General of 

5 the United States shall submit a report to Congress regard6 ing the Ticket to Work and Self-Sufficiency Program estab7 lished under section 1148 of the Social Security Act (42 

8 U.S.C. 1320b–19) that—

9 (1) examines the annual and interim reports 

10 issued by States, the Ticket to Work and Work Incen11 tives Advisory Panel established under section 101(f) 

12 of the Ticket to Work and Work Incentives Improve13 ment Act of 1999 (42 U.S.C. 1320b–19 note), and the 

14 Commissioner of Social Security regarding such pro15 gram; 

16 (2) assesses the effectiveness of the activities car17 ried out under such program; and 

18 (3) recommends such legislative or administra19 tive changes as the Comptroller General determines 

20 are appropriate to improve the effectiveness of such 

21 program. 
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1 Subtitle B—Miscellaneous 

2 Amendments 

3 SEC. 411. ELIMINATION OF TRANSCRIPT REQUIREMENT IN 

4 REMAND CASES FULLY FAVORABLE TO THE 

5 CLAIMANT. 

6 (a) IN GENERAL.—Section 205(g) of the Social Secu7 rity Act (42 U.S.C. 405(g)) is amended in the sixth sen8 tence by striking ‘‘and a transcript’’ and inserting ‘‘and, 

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

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

11 (b) EFFECTIVE DATE.—The amendment made by this 

12 section shall apply with respect to final determinations 

13 issued (upon remand) on or after the date of the enactment 

14 of this Act.

15 SEC. 412. NONPAYMENT OF BENEFITS UPON REMOVAL 

16 FROM THE UNITED STATES. 

17 (a) IN GENERAL.—Section 202(n) of the Social Secu18 rity Act (42 U.S.C. 402(n)) is amended—

19 (1) in paragraph (1), by striking ‘‘section 241(a) 

20 (other than under paragraph (1)(C) or (1)(E) thereof) 

21 of the Immigration and Nationality Act’’ and insert22 ing ‘‘section 237(a) of the Immigration and Nation23 ality Act (other than under paragraph (1)(C) of such 

24 section) or under section 212(a)(6)(A) of such Act’’;
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1 (2) in paragraph (2), by striking ‘‘section 241(a) 

2 of the Immigration and Nationality Act (other than 

3 under paragraph (1)(C) or (1)(E) thereof)’’ and in4 serting ‘‘section 237(a) of the Immigration and Na5 tionality Act (other than under paragraph (1)(C) of 

6 such section) or under section 212(a)(6)(A) of such 

7 Act’’; 

8 (3) in paragraph (3), by striking ‘‘paragraph 

9 (19) of section 241(a) of the Immigration and Nation10 ality Act (relating to persecution of others on account 

11 of race, religion, national origin, or political opinion, 

12 under the direction of or in association with the Nazi 

13 government of Germany or its allies) shall be consid14 ered to have been deported under such paragraph 

15 (19)’’ and inserting ‘‘paragraph (4)(D) of section 

16 241(a) of the Immigration and Nationality Act (re17 lating to participating in Nazi persecutions or geno18 cide) shall be considered to have been deported under 

19 such paragraph (4)(D)’’; and 

20 (4) in paragraph (3) (as amended by paragraph 

21 (3) of this subsection), by striking ‘‘241(a)’’ and in22 serting ‘‘237(a)’’. 

23 (b) TECHNICAL CORRECTIONS.—

24 (1) TERMINOLOGY REGARDING REMOVAL FROM

25 THE UNITED STATES.—Section 202(n) of the Social 
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1 Security Act (42 U.S.C. 402(n)) (as amended by sub2 section (a)) is amended further—

3 (A) by striking ‘‘deportation’’ each place it 

4 appears and inserting ‘‘removal’’; 

5 (B) by striking ‘‘deported’’ each place it ap6 pears and inserting ‘‘removed’’; and 

7 (C) in the heading, by striking ‘‘Deporta8 tion’’ and inserting ‘‘Removal’’. 

9 (2) REFERENCES TO THE SECRETARY OF HOME10 LAND SECURITY.—Section 202(n) of the Social Secu11 rity Act (42 U.S.C. 402(n)) (as amended by sub12 section (a) and paragraph (1)) is amended further by 

13 inserting ‘‘or the Secretary of Homeland Security’’ 

14 after ‘‘the Attorney General’’ each place it appears. 

15 (c) EFFECTIVE DATES.—

16 (1) IN GENERAL.—The amendment made by—

17 (A) subsection (a)(1) shall apply to individ18 uals with respect to whom the Commissioner of 

19 Social Security receives a removal notice after 

20 the date of the enactment of this Act; 

21 (B) subsection (a)(2) shall apply with re22 spect to notifications of removals received by the 

23 Commissioner of Social Security after the date of 

24 enactment of this Act; and 
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1 (C) subsection (a)(3) shall be effective as if 

2 enacted on March 1, 1991. 

3 (2) SUBSEQUENT CORRECTION OF CROSS-REF4 ERENCE AND TERMINOLOGY.—The amendments made 

5 by subsections (a)(4) and (b)(1) shall be effective as 

6 if enacted on April 1, 1997. 

7 (3) REFERENCES TO THE SECRETARY OF HOME8 LAND SECURITY.—The amendment made by sub9 section (b)(2) shall be effective as if enacted on March 

10 1, 2003. 

11 SEC. 413. REINSTATEMENT OF CERTAIN REPORTING RE12 QUIREMENTS. 

13 Section 3003(a)(1) of the Federal Reports Elimination 

14 and Sunset Act of 1995 (31 U.S.C. 1113 note) shall not 

15 apply to any report required to be submitted under any 

16 of the following provisions of law: 

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

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

19 (B) Section 1817(b)(2) of the Social Security Act 

20 (42 U.S.C. 1395i(b)(2)). 

21 (C) Section 1841(b)(2) of the Social Security Act 

22 (42 U.S.C. 1395t(b)(2)). 

23 (2)(A) Section 221(c)(3)(C) of the Social Secu24 rity Act (42 U.S.C. 421(c)(3)(C)). 
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1 (B) Section 221(i)(3) of the Social Security Act 

2 (42 U.S.C. 421(i)(3)). 

3 SEC. 414. CLARIFICATION OF DEFINITIONS REGARDING 

4 CERTAIN SURVIVOR BENEFITS. 

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

6 Act (42 U.S.C. 416(c)) is amended—

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

8 of clause (6) as subclauses (i) through (iii), respec9 tively; 

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

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

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

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

14 was married’’; 

15 (4) by inserting ‘‘(1)’’ after ‘‘(c)’’; and 

16 (5) by adding at the end the following:

17 ‘‘(2) The requirements of paragraph (1)(E) in connec18 tion with the surviving wife of an individual shall be treat19 ed as satisfied if—

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

21 the individual’s marriage to the surviving wife, 

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

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

24 mental incompetence or similar incapacity, 
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1 ‘‘(C) during the period of the prior wife’s insti2 tutionalization, the individual would have divorced 

3 the prior wife and married the surviving wife, but the 

4 individual did not do so because such divorce would 

5 have been unlawful, by reason of the prior wife’s in6 stitutionalization, under the laws of the State in 

7 which the individual was domiciled at the time (as 

8 determined based on evidence satisfactory to the Com9 missioner of Social Security), 

10 ‘‘(D) the prior wife continued to remain institu11 tionalized up to the time of her death, and 

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

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

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

15 U.S.C. 416(g)) is amended—

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

17 of clause (6) as subclauses (i) through (iii), respec18 tively; 

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

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

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

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

23 married’’; 

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

25 (5) by adding at the end the following: 
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1 ‘‘(2) The requirements of paragraph (1)(E) in connec2 tion with the surviving husband of an individual shall be 

3 treated as satisfied if—

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

5 the individual’s marriage to the surviving husband, 

6 ‘‘(B) the prior husband was institutionalized 

7 during the individual’s marriage to the prior husband 

8 due to mental incompetence or similar incapacity, 

9 ‘‘(C) during the period of the prior husband’s in10 stitutionalization, the individual would have divorced 

11 the prior husband and married the surviving hus12 band, but the individual did not do so because such 

13 divorce would have been unlawful, by reason of the 

14 prior husband’s institutionalization, under the laws 

15 of the State in which the individual was domiciled at 

16 the time (as determined based on evidence satisfactory 

17 to the Commissioner of Social Security), 

18 ‘‘(D) the prior husband continued to remain in19 stitutionalized up to the time of his death, and 

20 ‘‘(E) the individual married the surviving hus21 band within 60 days after the prior husband’s 

22 death.’’. 

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

24 such Act (42 U.S.C. 416(k)) is amended by striking ‘‘clause 

25 (5) of subsection (c) or clause (5) of subsection (g)’’ and 
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1 inserting ‘‘clause (E) of subsection (c)(1) or clause (E) of 

2 subsection (g)(1)’’. 

3 (d) EFFECTIVE DATE.—The amendments made by this 

4 section shall be effective with respect to applications for ben5 efits under title II of the Social Security Act filed during 

6 months ending after the date of the enactment of this Act. 

7 SEC. 415. CLARIFICATION RESPECTING THE FICA AND SECA 

8 TAX EXEMPTIONS FOR AN INDIVIDUAL 

9 WHOSE EARNINGS ARE SUBJECT TO THE 

10 LAWS OF A TOTALIZATION AGREEMENT PART11 NER. 

12 Sections 1401(c), 3101(c), and 3111(c) of the Internal 

13 Revenue Code of 1986 are each amended by striking ‘‘to 

14 taxes or contributions for similar purposes under’’ and in15 serting ‘‘exclusively to the laws applicable to’’.

16 SEC. 416. COVERAGE UNDER DIVIDED RETIREMENT SYSTEM 

17 FOR PUBLIC EMPLOYEES. 

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

19 Security Act (42 U.S.C. 418(d)(6)(C)) is amended by strik20 ing ‘‘the State of Alaska, California, Connecticut, Florida, 

21 Georgia, Illinois, Massachusetts, Minnesota, Nevada, New 

22 Jersey, New Mexico, New York, North Dakota, Pennsyl23 vania, Rhode Island, Tennessee, Texas, Vermont, Wash24 ington, Wisconsin, or Hawaii’’ and inserting ‘‘a State’’. 
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1 (b) EFFECTIVE DATE.—The amendment made by sub2 section (a) takes effect on January 1, 2003. 

3 SEC. 417. COMPENSATION FOR THE SOCIAL SECURITY ADVI4 SORY BOARD. 

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

6 Social Security Act (42 U.S.C. 903(f)) is amended to read 

7 as follows: 

8 ‘‘Compensation, Expenses, and Per Diem 

9 ‘‘(f) A member of the Board shall, for each day (includ10 ing traveltime) during which the member is attending meet11 ings or conferences of the Board or otherwise engaged in 

12 the business of the Board, be compensated at the daily rate 

13 of basic pay for level IV of the Executive Schedule. While 

14 serving on business of the Board away from their homes 

15 or regular places of business, members may be allowed trav16 el expenses, including per diem in lieu of subsistence, as 

17 authorized by section 5703 of title 5, United States Code, 

18 for persons in the Government employed intermittently.’’. 

19 (b) EFFECTIVE DATE.—The amendment made by this 

20 section shall be effective as of January 1, 2003.
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1 SEC. 418. 60-MONTH PERIOD OF EMPLOYMENT REQUIRE2 MENT FOR GOVERNMENT PENSION OFFSET 

3 EXEMPTION. 

4 (a) WIFE’S INSURANCE BENEFITS.—Section 202(b)(4) 

5 of the Social Security Act (42 U.S.C. 402(b)(4)) is amend6 ed—

7 (1) in subparagraph (A), by striking ‘‘if, on the 

8 last day she was employed by such entity’’ and insert9 ing ‘‘if, during any portion of such service’’; and 

10 (2) in subparagraph (B)—

11 (A) in clause (ii), by striking ‘‘Subpara12 graph (A)(ii)’’ and inserting ‘‘Clauses (i) and 

13 (ii) of subparagraph (A)’’; and 

14 (B) by adding at the end the following: 

15 ‘‘(iii) Subparagraph (A)(i) shall not apply with re16 spect to monthly periodic benefits based in whole or in part 

17 on service which constituted ‘employment’ as defined in sec18 tion 210 pursuant to an agreement executed with the Com19 missioner of Social Security under section 218, provided 

20 that the wife (or divorced wife) was employed in such serv21 ice—

22 ‘‘(I) on the date of enactment of this clause and 

23 such service was continuous throughout the 60-month 

24 period ending on the last day the wife (or divorced 

25 wife) was employed in the service of the State (or po-
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1 litical subdivision thereof, as defined in section 

2 218(b)(2)), or 

3 ‘‘(II) in the case of such an agreement that was 

4 executed by the Commissioner of Social Security after 

5 the date of enactment of this clause, on the date such 

6 an agreement was executed by the Commissioner of 

7 Social Security and such service was continuous 

8 throughout the 60-month period ending on the last 

9 day the wife (or divorced wife) was employed in the 

10 service of the State (or political subdivision thereof, as 

11 so defined).’’. 

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

13 202(c)(2) of such Act (42 U.S.C. 402(c)(2)) is amended—

14 (1) in subparagraph (A), by striking ‘‘if, on the 

15 last day he was employed by such entity’’ and insert16 ing ‘‘if, during any portion of such service’’; and 

17 (2) in subparagraph (B)—

18 (A) in clause (ii), by striking ‘‘Subpara19 graph (A)(ii)’’ and inserting ‘‘Clauses (i) and 

20 (ii) of subparagraph (A)’’; and 

21 (B) by adding at the end the following: 

22 ‘‘(iii) Subparagraph (A)(i) shall not apply with re23 spect to monthly periodic benefits based in whole or in part 

24 on service which constituted ‘employment’ as defined in sec25 tion 210 pursuant to an agreement executed with the Com-
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1 missioner of Social Security under section 218, provided 

2 that the husband (or divorced husband) was employed in 

3 such service—

4 ‘‘(I) on the date of enactment of this clause and 

5 such service was continuous throughout the 60-month 

6 period ending on the last day the husband (or di7 vorced husband) was employed in the service of the 

8 State (or political subdivision thereof, as defined in 

9 section 218(b)(2)), or 

10 ‘‘(II) in the case of such an agreement that was 

11 executed by the Commissioner of Social Security after 

12 the date of enactment of this clause, on the date such 

13 an agreement was executed by the Commissioner of 

14 Social Security and such service was continuous 

15 throughout the 60-month period ending on the last 

16 day the husband (or divorced husband) was employed 

17 in the service of the State (or political subdivision 

18 thereof, as so defined).’’. 

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

20 202(e)(7) of such Act (42 U.S.C. 402(e)(7)) is amended—

21 (1) in subparagraph (A), by striking ‘‘if, on the 

22 last day she was employed by such entity’’ and insert23 ing ‘‘if, during any portion of such service’’; and 

24 (2) in subparagraph (B)—
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1 (A) in clause (ii), by striking ‘‘Subpara2 graph (A)(ii)’’ and inserting ‘‘Clauses (i) and 

3 (ii) of subparagraph (A)’’; and 

4 (B) by adding at the end the following: 

5 ‘‘(iii) Subparagraph (A)(i) shall not apply with re6 spect to monthly periodic benefits based in whole or in part 

7 on service which constituted ‘employment’ as defined in sec8 tion 210 pursuant to an agreement executed with the Com9 missioner of Social Security under section 218, provided 

10 that the widow (or surviving divorced wife) was employed 

11 in such service—

12 ‘‘(I) on the date of enactment of this clause and 

13 such service was continuous throughout the 60-month 

14 period ending on the last day the widow (or surviving 

15 divorced wife) was employed in the service of the 

16 State (or political subdivision thereof, as defined in 

17 section 218(b)(2)), or 

18 ‘‘(II) in the case of such an agreement that was 

19 executed by the Commissioner of Social Security after 

20 the date of enactment of this clause, on the date such 

21 an agreement was executed by the Commissioner of 

22 Social Security and such service was continuous 

23 throughout the 60-month period ending on the last 

24 day the widow (or surviving divorced wife) was em-
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1 ployed in the service of the State (or political subdivi2 sion thereof, as so defined).’’. 

3 (d) WIDOWER’S INSURANCE BENEFITS.—Section 

4 202(f)(2) of such Act (42 U.S.C. 402(f)(2)) is amended—

5 (1) in subparagraph (A), by striking ‘‘if, on the 

6 last day he was employed by such entity’’ and insert7 ing ‘‘if, during any portion of such service’’; and 

8 (2) in subparagraph (B)—

9 (A) in clause (ii), by striking ‘‘Subpara10 graph (A)(ii)’’ and inserting ‘‘Clauses (i) and 

11 (ii) of subparagraph (A)’’; and 

12 (B) by adding at the end the following: 

13 ‘‘(iii) Subparagraph (A)(i) shall not apply with re14 spect to monthly periodic benefits based in whole or in part 

15 on service which constituted ‘employment’ as defined in sec16 tion 210 pursuant to an agreement executed with the Com17 missioner of Social Security under section 218, provided 

18 that the widower (or surviving divorced husband) was em19 ployed in such service—

20 ‘‘(I) on the date of enactment of this clause and 

21 such service was continuous throughout the 60-month 

22 period ending on the last day the widower (or sur23 viving divorced husband) was employed in the service 

24 of the State (or political subdivision thereof, as de25 fined in section 218(b)(2)), or
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1 ‘‘(II) in the case of such an agreement that was 

2 executed by the Commissioner of Social Security after 

3 the date of enactment of this clause, on the date such 

4 an agreement was executed by the Commissioner of 

5 Social Security and such service was continuous 

6 throughout the 60-month period ending on the last 

7 day the widower (or surviving divorced husband) was 

8 employed in the service of the State (or political sub9 division thereof, as so defined).’’. 

10 (e) MOTHER’S AND FATHER’S INSURANCE BENE11 FITS.—Section 202(g)(4) of the such Act (42 U.S.C. 

12 402(g)(4)) is amended—

13 (1) in subparagraph (A), by striking ‘‘if, on the 

14 last day the individual was employed by such entity’’ 

15 and inserting ‘‘if, during any portion of such serv16 ice’’; and 

17 (2) in subparagraph (B)—

18 (A) in clause (ii), by striking ‘‘Subpara19 graph (A)(ii)’’ and inserting ‘‘Clauses (i) and 

20 (ii) of subparagraph (A)’’; and 

21 (B) by adding at the end the following: 

22 ‘‘(iii) Subparagraph (A)(i) shall not apply with re23 spect to monthly periodic benefits based in whole or in part 

24 on service which constituted ‘employment’ as defined in sec25 tion 210 pursuant to an agreement executed with the Com-
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1 missioner of Social Security under section 218, provided 

2 that the individual was employed in such service—

3 ‘‘(I) on the date of enactment of this clause and 

4 such service was continuous throughout the 60-month 

5 period ending on the last day the individual was em6 ployed in the service of the State (or political subdivi7 sion thereof, as defined in section 218(b)(2)), or 

8 ‘‘(II) in the case of such an agreement that was 

9 executed by the Commissioner of Social Security after 

10 the date of enactment of this clause, on the date such 

11 an agreement was executed by the Commissioner of 

12 Social Security and such service was continuous 

13 throughout the 60-month period ending on the last 

14 day the individual was employed in the service of the 

15 State (or political subdivision thereof, as so de16 fined).’’. 

17 (f) EFFECTIVE DATE.—The amendments made by this 

18 section shall apply with respect to applications for benefits 

19 under title II of the Social Security Act filed on or after 

20 the first day of the first month that begins after the date 

21 of the enactment of this Act, except that such amendments 

22 shall not apply with respect to applications for benefits 

23 under title II of the Social Security Act based on earnings 

24 while in the service of any State (or political subdivision 
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1 thereof, as defined in section 218(b)(2) of the Social Secu2 rity Act)—

3 (1) if the last day of such service occurs before 

4 December 31, 2003, or 

5 (2) in any case in which the last day of such 

6 service occurs before June 30, 2004, subject to a con7 tract for such service entered into prior to September 

8 30, 2003. 

9 SEC. 419. POST-1956 MILITARY WAGE CREDITS. 

10 (a) PAYMENT TO THE SOCIAL SECURITY TRUST

11 FUNDS IN SATISFACTION OF OUTSTANDING OBLIGA12 TIONS.—Section 201 of the Social Security Act (42 U.S.C. 

13 401) is amended by adding at the end the following: 

14 ‘‘(n) Not later than July 1, 2004, the Secretary of the 

15 Treasury shall transfer, from amounts in the general fund 

16 of the Treasury that are not otherwise appropriated— 

17 ‘‘(1) $624,971,854 to the Federal Old-Age and 

18 Survivors Insurance Trust Fund; 

19 ‘‘(2) $105,379,671 to the Federal Disability In20 surance Trust Fund; and 

21 ‘‘(3) $173,306,134 to the Federal Hospital Insur22 ance Trust Fund. 

23 Amounts transferred in accordance with this subsection 

24 shall be in satisfaction of certain outstanding obligations 

25 for deemed wage credits for 2000 and 2001.’’. 
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1 (b) CONFORMING AMENDMENTS.—

2 (1) REPEAL OF AUTHORITY FOR ANNUAL APPRO3 PRIATIONS AND RELATED ADJUSTMENTS TO COM4 PENSATE THE SOCIAL SECURITY TRUST FUND FOR

5 MILITARY WAGE CREDITS.—Section 229 of the Social 

6 Security Act (42 U.S.C. 429) is amended—

7 (A) by striking ‘‘(a)’’; and 

8 (B) by striking subsection (b). 

9 (2) AMENDMENT TO REFLECT THE TERMINATION

10 OF WAGE CREDITS EFFECTIVE AFTER CALENDAR YEAR

11 2001 BY SECTION 8134 OF PUBLIC LAW 107–117.—Sec12 tion 229(a)(2) of the Social Security Act (42 U.S.C. 

13 429(a)(2)), as amended by paragraph (1), is amended 

14 by inserting ‘‘and before 2002’’ after ‘‘1977’’. 

15 Subtitle C—Technical Amendments 

16 SEC. 421. TECHNICAL CORRECTION RELATING TO RESPON17 SIBLE AGENCY HEAD. 

18 Section 1143 of the Social Security Act (42 

19 U.S.C. 1320b–13) is amended—

20 (1) by striking ‘‘Secretary’’ the first place it ap21 pears and inserting ‘‘Commissioner of Social Secu22 rity’’; and 

23 (2) by striking ‘‘Secretary’’ each subsequent place 

24 it appears and inserting ‘‘Commissioner’’. 
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1 SEC. 422. TECHNICAL CORRECTION RELATING TO RETIRE2 MENT BENEFITS OF MINISTERS. 

3 (a) IN GENERAL.—Section 211(a)(7) of the Social Se4 curity Act (42 U.S.C. 411(a)(7)) is amended by inserting 

5 ‘‘, but shall not include in any such net earnings from self6 employment the rental value of any parsonage or any par7 sonage allowance (whether or not excluded under section 

8 107 of the Internal Revenue Code of 1986) provided after 

9 the individual retires, or any other retirement benefit re10 ceived by such individual from a church plan (as defined 

11 in section 414(e) of such Code) after the individual retires’’ 

12 before the semicolon. 

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

14 section shall apply to years beginning before, on, or after 

15 December 31, 1994. 

16 SEC. 423. TECHNICAL CORRECTIONS RELATING TO DOMES17 TIC EMPLOYMENT. 

18 (a) AMENDMENT TO INTERNAL REVENUE CODE.—Sec19 tion 3121(a)(7)(B) of the Internal Revenue Code of 1986 

20 is amended by striking ‘‘described in subsection (g)(5)’’ and 

21 inserting ‘‘on a farm operated for profit’’. 

22 (b) AMENDMENT TO SOCIAL SECURITY ACT.—Section 

23 209(a)(6)(B) of the Social Security Act (42 

24 U.S.C. 409(a)(6)(B)) is amended by striking ‘‘described in 

25 section 210(f)(5)’’ and inserting ‘‘on a farm operated for 

26 profit’’.
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1 (c) CONFORMING AMENDMENT.—Section 3121(g)(5) of 

2 such Code and section 210(f)(5) of such Act (42 

3 U.S.C. 410(f)(5)) are amended by striking ‘‘or is domestic 

4 service in a private home of the employer’’. 

5 SEC. 424. TECHNICAL CORRECTIONS OF OUTDATED REF6 ERENCES. 

7 (a) CORRECTION OF CITATION RESPECTING THE TAX

8 DEDUCTION RELATING TO HEALTH INSURANCE COSTS OF

9 SELF-EMPLOYED INDIVIDUALS.—Section 211(a)(15) of the 

10 Social Security Act (42 U.S.C. 411(a)(15)) is amended by 

11 striking ‘‘section 162(m)’’ and inserting ‘‘section 162(l)’’. 

12 (b) ELIMINATION OF REFERENCE TO OBSOLETE 20-

13 DAY AGRICULTURAL WORK TEST.—Section 3102(a) of the 

14 Internal Revenue Code of 1986 is amended by striking ‘‘and 

15 the employee has not performed agricultural labor for the 

16 employer on 20 days or more in the calendar year for cash 

17 remuneration computed on a time basis’’. 

18 SEC. 425. TECHNICAL CORRECTION RESPECTING SELF-EM19 PLOYMENT INCOME IN COMMUNITY PROP20 ERTY STATES. 

21 (a) SOCIAL SECURITY ACT AMENDMENT.—Section 

22 211(a)(5)(A) of the Social Security Act (42 

23 U.S.C. 411(a)(5)(A)) is amended by striking ‘‘all of the 

24 gross income’’ and all that follows and inserting ‘‘the gross 

25 income and deductions attributable to such trade or busi-
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1 ness shall be treated as the gross income and deductions 

2 of the spouse carrying on such trade or business or, if such 

3 trade or business is jointly operated, treated as the gross 

4 income and deductions of each spouse on the basis of their 

5 respective distributive share of the gross income and deduc6 tions;’’. 

7 (b) INTERNAL REVENUE CODE OF 1986 AMEND8 MENT.—Section 1402(a)(5)(A) of the Internal Revenue 

9 Code of 1986 is amended by striking ‘‘all of the gross in10 come’’ and all that follows and inserting ‘‘the gross income 

11 and deductions attributable to such trade or business shall 

12 be treated as the gross income and deductions of the spouse 

13 carrying on such trade or business or, if such trade or busi14 ness is jointly operated, treated as the gross income and 

15 deductions of each spouse on the basis of their respective 

16 distributive share of the gross income and deductions; and’’. 

17 SEC. 426. TECHNICAL AMENDMENTS TO THE RAILROAD RE18 TIREMENT AND SURVIVORS’ IMPROVEMENT 

19 ACT OF 2001. 

20 (a) QUORUM RULES.—Section 15(j)(7) of the Railroad 

21 Retirement Act of 1974 (45 U.S.C. 231n(j)(7)) is amended 

22 by striking ‘‘entire Board of Trustees’’ and inserting 

23 ‘‘Trustees then holding office’’. 
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1 (b) POWERS OF THE BOARD OF TRUSTEES.—Section 

2 15(j)(4) of the Railroad Retirement Act of 1974 (45 U.S.C. 

3 231n(j)(4)) is amended to read as follows: 

4 ‘‘(4) POWERS OF THE BOARD OF TRUSTEES.—

5 The Board of Trustees shall—

6 ‘‘(A) retain independent advisers to assist it 

7 in the formulation and adoption of its invest8 ment guidelines; 

9 ‘‘(B) invest assets of the Trust in a manner 

10 consistent with such investment guidelines, either 

11 directly or through the retention of independent 

12 investment managers; 

13 ‘‘(C) adopt bylaws and other rules to govern 

14 its operations; 

15 ‘‘(D) employ professional staff, and contract 

16 with outside advisers, including the Railroad Re17 tirement Board, to provide legal, accounting, in18 vestment advisory or management services (com19 pensation for which may be on a fixed contract 

20 fee basis or on such other terms as are customary 

21 for such services), or other services necessary for 

22 the proper administration of the Trust; 

23 ‘‘(E) sue and be sued and participate in 

24 legal proceedings, have and use a seal, conduct 

25 business, carry on operations, and exercise its 
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1 powers within or without the District of Colum2 bia, form, own, or participate in entities of any 

3 kind, enter into contracts and agreements nec4 essary to carry out its business purposes, lend 

5 money for such purposes, and deal with property 

6 as security for the payment of funds so loaned, 

7 and possess and exercise any other powers ap8 propriate to carry out the purposes of the Trust; 

9 ‘‘(F) pay administrative expenses of the 

10 Trust from the assets of the Trust; and 

11 ‘‘(G) transfer money to the disbursing agent 

12 or as otherwise provided in section 7(b)(4), to 

13 pay benefits payable under this Act from the as14 sets of the Trust.’’. 

15 (c) STATE AND LOCAL TAXES.—Section 15(j)(6) of the 

16 Railroad Retirement Act of 1974 (45 U.S.C. 231n(j)(6)) is 

17 amended to read as follows: 

18 ‘‘(6) STATE AND LOCAL TAXES.—The Trust shall 

19 be exempt from any income, sales, use, property, or 

20 other similar tax or fee imposed or levied by a State, 

21 political subdivision, or local taxing authority. The 

22 district courts of the United States shall have original 

23 jurisdiction over a civil action brought by the Trust 

24 to enforce this subsection and may grant equitable or 

25 declaratory relief requested by the Trust.’’. 
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1 (d) FUNDING.—Section 15(j)(8) of the Railroad Re2 tirement Act of 1974 (45 U.S.C. 231n(j)(8)) is repealed. 

3 (e) TRANSFERS.—

4 (1) Section 15(k) of the Railroad Retirement Act 

5 of 1974 (45 U.S.C. 231n(k)) is amended by adding at 

6 the end the following: ‘‘At the direction of the Rail7 road Retirement Board, the National Railroad Re8 tirement Investment Trust shall transfer funds to the 

9 Railroad Retirement Account.’’. 

10 (2) Section 15A(d)(2) of the Railroad Retirement 

11 Act of 1974 (45 U.S.C. 231n–1(d)(2)) is amended—

12 (A) by inserting ‘‘or the Railroad Retire13 ment Account’’ after ‘‘National Railroad Retire14 ment Investment Trust’’ the second place it ap15 pears; 

16 (B) by inserting ‘‘or the Railroad Retire17 ment Board’’ after ‘‘National Railroad Retire18 ment Investment Trust’’ the third place it ap19 pears; 

20 (C) by inserting ‘‘(either directly or through 

21 a commingled account consisting only of such ob22 ligations)’’ after ‘‘United States’’ the first place 

23 it appears; and
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1 (D) in the third sentence, by inserting be2 fore the period at the end the following: ‘‘or to 

3 purchase such additional obligations’’. 

4 (3) Paragraph (4)(B)(ii) of section 7(b) of the 

5 Railroad Retirement Act of 1974 (45 U.S.C. 

6 231f(b)(4)(B)(ii)) is amended by inserting ‘‘quarterly 

7 or at such other times as the Railroad Retirement 

8 Board and the Board of Trustees of the National 

9 Railroad Retirement Investment Trust may mutually 

10 agree’’ after ‘‘amounts’’ the second place it appears. 

11 (f) CLERICAL AMENDMENTS.—Section 15(j)(5) of the 

12 Railroad Retirement Act of 1974 (45 U.S.C. 231n(j)(5)) is 

13 amended—

14 (1) in subparagraph (B), by striking ‘‘trustee’s’’ 

15 each place it appears and inserting ‘‘Trustee’s’’; 

16 (2) in subparagraph (C), by striking ‘‘trustee’’ 

17 and ‘‘trustees’’ each place it appears and inserting 

18 ‘‘Trustee’’ and ‘‘Trustees’’, respectively; and 

19 (3) in the matter preceding clause (i) of subpara20 graph (D), by striking ‘‘trustee’’ and inserting 

21 ‘‘Trustee’’. 
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1 Subtitle D—Amendments Related to 

2 Title XVI 

3 SEC. 430. EXCLUSION FROM INCOME FOR CERTAIN INFRE4 QUENT OR IRREGULAR INCOME AND CERTAIN 

5 INTEREST OR DIVIDEND INCOME. 

6 (a) INFREQUENT OR IRREGULAR INCOME.—Section 

7 1612(b)(3) of the Social Security Act (42 U.S.C. 

8 1382a(b)(3)) is amended to read as follows—

9 ‘‘(3) in any calendar quarter, the first—

10 ‘‘(A) $60 of unearned income, and 

11 ‘‘(B) $30 of earned income, 

12 of such individual (and such spouse, if any) which, 

13 as determined in accordance with criteria prescribed 

14 by the Commissioner of Social Security, is received 

15 too infrequently or irregularly to be included;’’. 

16 (b) INTEREST OR DIVIDEND INCOME.—Section 

17 1612(b) of the Social Security Act (42 U.S.C. 1382a(b)) is 

18 amended—

19 (1) in paragraph (21), by striking ‘‘and’’ at the 

20 end; 

21 (2) in paragraph (22), by striking the period 

22 and inserting ‘‘; and’’; and 

23 (3) by adding at the end the following: 

24 ‘‘(23) interest or dividend income from re25 sources—
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1 ‘‘(A) not excluded under section 1613(a), or 

2 ‘‘(B) excluded pursuant to Federal law 

3 other than section 1613(a).’’. 

4 (c) EFFECTIVE DATE.—The amendments made by this 

5 section shall be effective with respect to benefits payable for 

6 months in calendar quarters that begin more than 90 days 

7 after the date of the enactment of this Act. 

8 SEC. 431. UNIFORM 9-MONTH RESOURCE EXCLUSION PERI9 ODS. 

10 (a) UNDERPAYMENTS OF BENEFITS.—Section 

11 1613(a)(7) of the Social Security Act (42 U.S.C. 

12 1382b(a)(7)) is amended—

13 (1) by striking ‘‘6’’ and inserting ‘‘9’’; and 

14 (2) by striking ‘‘(or to the first 9 months fol15 lowing such month with respect to any amount so re16 ceived during the period beginning October 1, 1987, 

17 and ending September 30, 1989)’’. 

18 (b) ADVANCEABLE TAX CREDITS.—Section 

19 1613(a)(11) of the Social Security Act (42 U.S.C. 

20 1382b(a)(11)) is amended to read as follows: 

21 ‘‘(11) for the 9-month period beginning after the 

22 month in which received—

23 ‘‘(A) notwithstanding section 203 of the 

24 Economic Growth and Tax Relief Reconciliation 

25 Act of 2001, any refund of Federal income taxes 
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1 made to such individual (or such spouse) under 

2 section 24 of the Internal Revenue Code of 1986 

3 (relating to child tax credit) by reason of sub4 section (d) thereof; and 

5 ‘‘(B) any refund of Federal income taxes 

6 made to such individual (or such spouse) by rea7 son of section 32 of the Internal Revenue Code 

8 of 1986 (relating to earned income tax credit), 

9 and any payment made to such individual (or 

10 such spouse) by an employer under section 3507 

11 of such Code (relating to advance payment of 

12 earned income credit);’’. 

13 (c) EFFECTIVE DATE.—The amendments made by this 

14 section shall take effect on the date of enactment of this Act, 

15 and shall apply to amounts described in paragraph (7) of 

16 section 1613(a) of the Social Security Act and refunds of 

17 Federal income taxes described in paragraph (11) of such 

18 section, that are received by an eligible individual or eligi19 ble spouse on or after such date. 

20 SEC. 432. MODIFICATION OF DEDICATED ACCOUNT RE21 QUIREMENTS. 

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

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

24 (1) in clause (ii)(II)—

25 (A) in item (ff), by striking ‘‘or’’ at the end; 
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1 (B) by redesignating item (gg) as item (hh); 

2 (C) by inserting after item (ff) the fol3 lowing: 

4 ‘‘(gg) reimbursement of expenditures incurred by 

5 the representative payee that are for the good of such 

6 individual; or’’; and 

7 (D) in the matter following item (hh) (as 

8 redesignated by subparagraph (B)), by striking 

9 ‘‘(gg), is related to the impairment (or combina10 tion of impairments)’’ and inserting ‘‘(hh), is ex11 pended for the good’’; and 

12 (2) in clause (iv), by inserting ‘‘, including with 

13 respect to allowable expenses paid from the account in 

14 accordance with clause (ii)(II)’’ before the period. 

15 (b) EFFECTIVE DATE.—The amendments made by this 

16 section take effect on January 1, 2004, and apply with re17 spect to allowable expenses incurred or accounts established 

18 on or after that date. 

19 SEC. 433. ELIMINATION OF CERTAIN RESTRICTIONS ON THE 

20 APPLICATION OF THE STUDENT EARNED IN21 COME EXCLUSION. 

22 (a) IN GENERAL.—Section 1612(b)(1) of the Social Se23 curity Act (42 U.S.C. 1382a(b)(1)) is amended by striking 

24 ‘‘a child who’’ and inserting ‘‘under the age of 22 and’’.
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1 (b) EFFECTIVE DATE.—The amendment made by this 

2 section shall be effective with respect to benefits payable for 

3 months that begin on or after 1 year after the date of enact4 ment of this Act. 

5 SEC. 434. EXCLUSION OF AMERICORPS AND OTHER VOLUN6 TEER BENEFITS FOR PURPOSES OF DETER7 MINING SUPPLEMENTAL SECURITY INCOME 

8 ELIGIBILITY AND BENEFIT AMOUNTS AND SO9 CIAL SECURITY DISABILITY INSURANCE ENTI10 TLEMENT. 

11 (a) IN GENERAL.—

12 (1) SSI.—

13 (A) INCOME.—Section 1612(b) of the Social 

14 Security Act (42 U.S.C. 1382a(b)) (as amended 

15 by section 430(a)(2)) is amended—

16 (i) in paragraph (22), by striking 

17 ‘‘and’’ at the end; 

18 (ii) in paragraph (23), by striking the 

19 period and inserting ‘‘; and’’; and 

20 (iii) by adding at the end the fol21 lowing: 

22 ‘‘(24) any cash or in-kind benefit conferred upon 

23 (or paid on behalf of) an individual serving as a vol24 unteer or participant in a program administered by 
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1 the Corporation for National and Community Service 

2 for service in such program.’’. 

3 (B) SUBSTANTIAL GAINFUL ACTIVITY.—Sec4 tion 1614(a)(3) of the Social Security Act (42 

5 U.S.C. 1382c(a)(3)) is amended by adding at the 

6 end the following: 

7 ‘‘(K) In determining under subparagraph (A) when 

8 services performed or earnings derived from services dem9 onstrate an individual’s ability to engage in substantial 

10 gainful activity, the Commissioner of Social Security shall 

11 disregard services performed as a volunteer or participant 

12 in any program administered by the Corporation for Na13 tional and Community Service, and any earnings derived 

14 from such service.’’. 

15 (2) SSDI.—Section 223(d)(4) of such Act (42 

16 U.S.C. 423(d)(4)) is amended by adding at the end 

17 the following: 

18 ‘‘(C) In determining under subparagraph (A) when 

19 services performed or earnings derived from services dem20 onstrate an individual’s ability to engage in substantial 

21 gainful activity, the Commissioner of Social Security shall 

22 disregard services performed as a volunteer or participant 

23 in any program administered by the Corporation for Na24 tional and Community Service, and any earnings derived 

25 from such service.’’. 
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1 (b) EFFECTIVE DATE.—The amendments made by this 

2 section shall apply to benefits payable for months beginning 

3 on or after 60 days after the date of enactment of this Act. 

4 SEC. 435. EXCEPTION TO RETROSPECTIVE MONTHLY AC5 COUNTING FOR NONRECURRING INCOME. 

6 (a) IN GENERAL.—Section 1611(c) of the Social Secu7 rity Act (42 U.S.C. 1382(c)) is amended by adding at the 

8 end the following: 

9 ‘‘(9)(A) Notwithstanding paragraphs (1) and (2), any 

10 nonrecurring income which is paid to an individual in the 

11 first month of any period of eligibility shall be taken into 

12 account in determining the amount of the benefit under this 

13 title of such individual (and his eligible spouse, if any) only 

14 for that month, and shall not be taken into account in deter15 mining the amount of the benefit for any other month. 

16 ‘‘(B) For purposes of subparagraph (A), payments to 

17 an individual in varying amounts from the same or similar 

18 source for the same or similar purpose shall not be consid19 ered to be nonrecurring income.’’. 

20 (b) DELETION OF OBSOLETE MATERIAL.—Section 

21 1611(c)(2)(B) of the Social Security Act (42 U.S.C. 

22 1382(c)(2)(B)) is amended to read as follows: 

23 ‘‘(B) in the case of the first month following a 

24 period of ineligibility in which eligibility is restored 

25 after the first day of such month, bear the same ratio 
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1 to the amount of the benefit which would have been 

2 payable to such individual if eligibility had been re3 stored on the first day of such month as the number 

4 of days in such month including and following the 

5 date of restoration of eligibility bears to the total 

6 number of days in such month.’’. 

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

8 section shall be effective with respect to benefits payable for 

9 months that begin on or after 1 year after the date of enact10 ment of this Act. 

11 SEC. 436. REMOVAL OF RESTRICTION ON PAYMENT OF BEN12 EFITS TO CHILDREN WHO ARE BORN OR WHO 

13 BECOME BLIND OR DISABLED AFTER THEIR 

14 MILITARY PARENTS ARE STATIONED OVER15 SEAS. 

16 (a) IN GENERAL.—Section 1614(a)(1)(B)(ii) of the So17 cial Security Act (42 U.S.C. 1382c(a)(1)(B)(ii)) is amend18 ed—

19 (1) by inserting ‘‘and’’ after ‘‘citizen of the 

20 United States,’’; and 

21 (2) by striking ‘‘, and who,’’ and all that follows 

22 and inserting a period. 

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

24 section shall be effective with respect to benefits payable for
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1 months beginning after the date of enactment of this Act, 

2 but only on the basis of an application filed after such date. 

3 SEC. 437. TREATMENT OF EDUCATION-RELATED INCOME 

4 AND RESOURCES. 

5 (a) EXCLUSION FROM INCOME OF GIFTS PROVIDED

6 FOR TUITION AND OTHER EDUCATION-RELATED FEES.—

7 Section 1612(b)(7) of the Social Security Act (42 U.S.C. 

8 1382a(b)(7)) is amended by striking ‘‘or fellowship received 

9 for use in paying’’ and inserting ‘‘fellowship, or gift (or 

10 portion of a gift) used to pay’’. 

11 (b) EXCLUSION FROM RESOURCES FOR 9 MONTHS OF

12 GRANTS, SCHOLARSHIPS, FELLOWSHIPS, OR GIFTS PRO13 VIDED FOR TUITION AND OTHER EDUCATION-RELATED

14 FEES.—Section 1613(a) of the Social Security Act (42 

15 U.S.C. 1382b(a)) (as amended by section 101(c)(2)) is 

16 amended—

17 (1) in paragraph (13), by striking ‘‘and’’ at the 

18 end; 

19 (2) in paragraph (14), by striking the period 

20 and inserting ‘‘; and’’; and 

21 (3) by inserting after paragraph (14) the fol22 lowing: 

23 ‘‘(15) for the 9-month period beginning after the 

24 month in which received, any grant, scholarship, fel25 lowship, or gift (or portion of a gift) used to pay the 
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1 cost of tuition and fees at any educational (including 

2 technical or vocational education) institution.’’. 

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

4 section shall apply to benefits payable for months that begin 

5 more than 90 days after the date of enactment of this Act. 

6 SEC. 438. MONTHLY TREATMENT OF UNIFORMED SERVICE 

7 COMPENSATION. 

8 (a) TREATMENT OF PAY AS RECEIVED WHEN

9 EARNED.—Section 1611(c) of the Social Security Act (42 

10 U.S.C. 1382(c)), as amended by section 435(a), is amended 

11 by adding at the end the following: 

12 ‘‘(10) For purposes of this subsection, remuneration for 

13 service performed as a member of a uniformed service may 

14 be treated as received in the month in which it was earned, 

15 if the Commissioner of Social Security determines that such 

16 treatment would promote the economical and efficient ad17 ministration of the program authorized by this title.’’. 

18 (b) EFFECTIVE DATE.—The amendments made by this 

19 section shall apply to benefits payable for months that begin 

20 more than 90 days after the date of enactment of this Act. 

21 SEC. 439. UPDATE OF RESOURCE LIMITS. 

22 (a) INCREASE.—Section 1611(a)(3) of the Social Secu23 rity Act (42 U.S.C. 1382(a)(3)) is amended—

24 (1) in subparagraph (A), by adding at the end 

25 the following: ‘‘On January 1, 2004, such dollar 
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1 amount shall be increased to an amount equal to 150 

2 percent of the dollar amount applicable to an indi3 vidual described in paragraph (1)(B)(ii).’’; and 

4 (2) in subparagraph (B)—

5 (A) by striking ‘‘and’’ the last place it ap6 pears; and 

7 (B) by inserting ‘‘, and to $3,000 on Janu8 ary 1, 2004’’ before the period. 

9 (b) COST-OF-LIVING ADJUSTMENT.—Section 

10 1617(a)(1) of the Social Security Act (42 U.S.C. 

11 1382f(a)(1)) is amended by inserting ‘‘(a)(3)(B),’’ before 

12 ‘‘(b)(1)’’. 

13 (c) EFFECTIVE DATES.—

14 (1) INCREASE.—The amendments made by sub15 section (a) shall take effect on January 1, 2004. 

16 (2) COST-OF-LIVING ADJUSTMENT.—The amend17 ment made by subsection (b) shall take effect on Jan18 uary 1, 2005. 

19 SEC. 440. REVIEW OF STATE AGENCY BLINDNESS AND DIS20 ABILITY DETERMINATIONS. 

21 Section 1633 of the Social Security Act (42 U.S.C. 

22 1383b) is amended by adding at the end the following: 

23 ‘‘(e)(1) The Commissioner of Social Security shall re24 view determinations, made by State agencies pursuant to 

25 subsection (a) in connection with applications for benefits 
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1 under this title on the basis of blindness or disability, that 

2 individuals who have attained 18 years of age are blind 

3 or disabled. Any review by the Commissioner of Social Se4 curity of a State agency determination under this para5 graph shall be made before any action is taken to implement 

6 the determination. 

7 ‘‘(2)(A) In carrying out paragraph (1), the Commis8 sioner of Social Security shall review—

9 ‘‘(i) with respect to fiscal year 2004, at least 25 

10 percent of all determinations referred to in paragraph 

11 (1) that are made in such year after the later of—

12 ‘‘(I) March 31; and 

13 ‘‘(II) the date of enactment of this sub14 section; and 

15 ‘‘(ii) with respect to fiscal years after fiscal year 

16 2004, at least 50 percent of all such determinations 

17 that are made in each such fiscal year. 

18 ‘‘(B) In conducting reviews pursuant to subparagraph 

19 (A), the Commissioner of Social Security shall, to the extent 

20 feasible, select for review those determinations which the 

21 Commissioner of Social Security identifies as being the 

22 most likely to be incorrect.’’.

Calendar No. 349

108TH CONGRESS 

1ST SESSION H. R. 743

[Report No. 108–176] 

AN ACT

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. 

OCTOBER 29, 2003

Reported with an amendment