H. R. 743 

One Hundred Eighth Congress 

of the 

United States of America 

AT THE SECOND SESSION 

Begun and held at the City of Washington on Tuesday, 

the twentieth day of January, two thousand and four 

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. 

Be it enacted by the Senate and House of Representatives of 

the United States of America in Congress assembled, 

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Social Security 

Protection Act of 2004’’. 

(b) TABLE OF CONTENTS.—The table of contents for this Act 

is 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. 

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. 
H. R. 743—2 

Sec. 210. Authority for cross-program recovery of benefit overpayments. 

Sec. 211. 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. Temporary extension of attorney fee payment system to title XVI claims. 

Sec. 303. Nationwide demonstration project providing for extension of fee withholding procedures to non-attorney representatives. Sec. 304. GAO study regarding the 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. 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 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. Sec. 406. GAO study regarding the Ticket to Work and Self-Sufficiency Program. 

Sec. 407. Reauthorization of appropriations for certain work incentives programs. 

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

Sec. 418. Sixty-month period of employment requirement for application of government pension offset exemption. Sec. 419. Disclosure to workers of effect of windfall elimination provision and government pension offset provision. Sec. 420. Post-1956 Military Wage Credits. 

Sec. 420A. Elimination of disincentive to return-to-work for childhood disability 

beneficiaries. 

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. Elimination of certain restrictions on the application of the student 

earned income exclusion. 

Sec. 433. Exception to retrospective monthly accounting for nonrecurring income. 

Sec. 434. 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. 
H. R. 743—3 

Sec. 435. Treatment of education-related income and resources. 

Sec. 436. Monthly treatment of uniformed service compensation. 

TITLE I—PROTECTION OF 

BENEFICIARIES 

Subtitle A—Representative Payees 

SEC. 101. AUTHORITY TO REISSUE BENEFITS MISUSED BY ORGANIZATIONAL REPRESENTATIVE PAYEES. 

(a) TITLE II AMENDMENTS.—

(1) REISSUANCE OF BENEFITS.—Section 205(j)(5) of the 

Social Security Act (42 U.S.C. 405(j)(5)) is amended by 

inserting after the first sentence the following: ‘‘In any case 

in which a representative payee that—

‘‘(A) is not an individual (regardless of whether it is a 

‘qualified organization’ within the meaning of paragraph (4)(B)); 

or 

‘‘(B) is an individual who, for any month during a period 

when misuse occurs, serves 15 or more individuals who are 

beneficiaries under this title, title VIII, title XVI, or any combination of such titles; 

misuses all or part of an individual’s benefit paid to such representative payee, the Commissioner of Social Security shall certify for 

payment to the beneficiary or the beneficiary’s alternative representative payee an amount equal to the amount of such benefit 

so misused. The provisions of this paragraph are subject to the 

limitations of paragraph (7)(B).’’. (2) MISUSE OF BENEFITS DEFINED.—Section 205(j) of such 

Act (42 U.S.C. 405(j)) is amended by adding at the end the 

following: 

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

a representative payee occurs in any case in which the representative payee receives payment under this title for the use and benefit 

of another person and converts such payment, or any part thereof, 

to a use other than for the use and benefit of such other person. 

The Commissioner of Social Security may prescribe by regulation 

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

paragraph.’’. 

(b) TITLE VIII AMENDMENTS.—

(1) REISSUANCE OF BENEFITS.—Section 807(i) of the Social 

Security Act (42 U.S.C. 1007(i)) is amended further by inserting 

after the first sentence the following: ‘‘In any case in which 

a representative payee that—

‘‘(A) is not an individual; or 

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

period when misuse occurs, serves 15 or more individuals 

who are beneficiaries under this title, title II, title XVI, 

or any combination of such titles; 

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

representative payee, the Commissioner of Social Security shall 

pay to the beneficiary or the beneficiary’s alternative representative payee an amount equal to the amount of such benefit 

so misused. The provisions of this paragraph are subject to 

the limitations of subsection (l)(2).’’. 
H. R. 743—4 

(2) MISUSE OF BENEFITS DEFINED.—Section 807 of such 

Act (42 U.S.C. 1007) is amended by adding at the end the 

following: 

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

of benefits by a representative payee occurs in any case in which 

the representative payee receives payment under this title for the 

use and benefit of another person under this title and converts 

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

use and benefit of such person. The Commissioner of Social Security 

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

benefit’ for purposes of this subsection.’’. 

(3) TECHNICAL AMENDMENT.—Section 807(a) of such Act 

(42 U.S.C. 1007(a)) is amended, in the first sentence, by 

striking ‘‘for his or her benefit’’ and inserting ‘‘for his or her 

use and benefit’’. 

(c) TITLE XVI AMENDMENTS.—

(1) REISSUANCE OF BENEFITS.—Section 1631(a)(2)(E) of such 

Act (42 U.S.C. 1383(a)(2)(E)) is amended by inserting after 

the first sentence the following: ‘‘In any case in which a representative payee that—

‘‘(i) is not an individual (regardless of whether it is a 

‘qualified organization’ within the meaning of subparagraph 

(D)(ii)); or 

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

when misuse occurs, serves 15 or more individuals who are 

beneficiaries under this title, title II, title VIII, or any combination of such titles; 

misuses all or part of an individual’s benefit paid to such representative payee, the Commissioner of Social Security shall pay to the 

beneficiary or the beneficiary’s alternative representative payee an 

amount equal to the amount of such benefit so misused. The provisions of this subparagraph are subject to the limitations of subparagraph (H)(ii).’’. 

(2) EXCLUSION OF REISSUED BENEFITS FROM RESOURCES.—

Section 1613(a) of such Act (42 U.S.C. 1382b(a)) is amended—

(A) in paragraph (12), by striking ‘‘and’’ at the end; 

(B) in paragraph (13), by striking the period and 

inserting ‘‘; and’’; and 

(C) by inserting after paragraph (13) the following: 

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

in which received, any amount received by such individual 

(or spouse) or any other person whose income is deemed to 

be included in such individual’s (or spouse’s) income for purposes of this title as restitution for benefits under this title, 

title II, or title VIII that a representative payee of such individual (or spouse) or such other person under section 205(j), 

807, or 1631(a)(2) has misused.’’. 

(3) MISUSE OF BENEFITS DEFINED.—Section 1631(a)(2)(A) 

of such Act (42 U.S.C. 1383(a)(2)(A)) is amended by adding 

at the end the following: 

‘‘(iv) For purposes of this paragraph, misuse of benefits by 

a representative payee occurs in any case in which the representative payee receives payment under this title for the use and benefit 

of another person and converts such payment, or any part thereof, 

to a use other than for the use and benefit of such other person. 

The Commissioner of Social Security may prescribe by regulation 
H. R. 743—5 

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

clause.’’. 

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

shall apply to any case of benefit misuse by a representative payee 

with respect to which the Commissioner of Social Security makes 

the determination of misuse on or after January 1, 1995. 

SEC. 102. OVERSIGHT OF REPRESENTATIVE PAYEES. 

(a) CERTIFICATION OF BONDING AND LICENSING REQUIREMENTS

FOR NONGOVERNMENTAL ORGANIZATIONAL REPRESENTATIVE

PAYEES.—

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

Security Act (42 U.S.C. 405(j)) is amended—

(A) in paragraph (2)(C)(v), by striking ‘‘a communitybased nonprofit social service agency licensed or bonded 

by the State’’ in subclause (I) and inserting ‘‘a certified 

community-based nonprofit social service agency (as 

defined in paragraph (9))’’; 

(B) in paragraph (3)(F), by striking ‘‘community-based 

nonprofit social service agencies’’ and inserting ‘‘certified 

community-based nonprofit social service agencies (as 

defined in paragraph (9))’’; 

(C) in paragraph (4)(B), by striking ‘‘any communitybased nonprofit social service agency which is bonded or 

licensed in each State in which it serves as a representative 

payee’’ and inserting ‘‘any certified community-based nonprofit social service agency (as defined in paragraph (9))’’; 

and 

(D) by adding after paragraph (8) (as added by section 

101(a)(2) of this Act) the following: 

‘‘(9) For purposes of this subsection, the term ‘certified community-based nonprofit social service agency’ means a communitybased nonprofit social service agency which is in compliance with 

requirements, under regulations which shall be prescribed by the 

Commissioner, for annual certification to the Commissioner that 

it is bonded in accordance with requirements specified by the 

Commissioner and that it is licensed in each State in which it 

serves as a representative payee (if licensing is available in the 

State) in accordance with requirements specified by the Commissioner. Any such annual certification shall include a copy of any 

independent audit on the agency which may have been performed 

since the previous certification.’’. 

(2) TITLE XVI AMENDMENTS.—Section 1631(a)(2) of such Act 

(42 U.S.C. 1383(a)(2)) is amended—

(A) in subparagraph (B)(vii), by striking ‘‘a communitybased nonprofit social service agency licensed or bonded 

by the State’’ in subclause (I) and inserting ‘‘a certified 

community-based nonprofit social service agency (as 

defined in subparagraph (I))’’; 

(B) in subparagraph (D)(ii)—

(i) by striking ‘‘or any community-based’’ and all 

that follows through ‘‘in accordance’’ in subclause (II) 

and inserting ‘‘or any certified community-based nonprofit social service agency (as defined in subparagraph 

(I)), if the agency, in accordance’’; 
H. R. 743—6 

(ii) by redesignating items (aa) and (bb) as subclauses (I) and (II), respectively (and adjusting the 

margins accordingly); and 

(iii) by striking ‘‘subclause (II)(bb)’’ and inserting 

‘‘subclause (II)’’; and 

(C) by adding at the end the following: 

‘‘(I) For purposes of this paragraph, the term ‘certified community-based nonprofit social service agency’ means a communitybased nonprofit social service agency which is in compliance with 

requirements, under regulations which shall be prescribed by the 

Commissioner, for annual certification to the Commissioner that 

it is bonded in accordance with requirements specified by the 

Commissioner and that it is licensed in each State in which it 

serves as a representative payee (if licensing is available in the 

State) in accordance with requirements specified by the Commissioner. Any such annual certification shall include a copy of any 

independent audit on the agency which may have been performed 

since the previous certification.’’. 

(3) EFFECTIVE DATE.—The amendments made by this subsection shall take effect on the first day of the thirteenth 

month beginning after the date of the enactment of this Act. 

(b) PERIODIC ONSITE REVIEW.—

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

(42 U.S.C. 405(j)(6)) is amended to read as follows: 

‘‘(6)(A) In addition to such other reviews of representative 

payees as the Commissioner of Social Security may otherwise conduct, the Commissioner shall provide for the periodic onsite review 

of any person or agency located in the United States that receives 

the benefits payable under this title (alone or in combination with 

benefits payable under title VIII or title XVI) to another individual 

pursuant to the appointment of such person or agency as a representative payee under this subsection, section 807, or section 

1631(a)(2) in any case in which—

‘‘(i) the representative payee is a person who serves in 

that capacity with respect to 15 or more such individuals; 

‘‘(ii) the representative payee is a certified communitybased nonprofit social service agency (as defined in paragraph 

(9) of this subsection or section 1631(a)(2)(I)); or 

‘‘(iii) the representative payee is an agency (other than 

an agency described in clause (ii)) that serves in that capacity 

with respect to 50 or more such individuals. 

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

Commissioner shall submit to the Committee on Ways and Means 

of the House of Representatives and the Committee on Finance 

of the Senate a report on the results of periodic onsite reviews 

conducted during the fiscal year pursuant to subparagraph (A) 

and of any other reviews of representative payees conducted during 

such fiscal year in connection with benefits under this title. Each 

such report shall describe in detail all problems identified in such 

reviews and any corrective action taken or planned to be taken 

to correct such problems, and shall include— ‘‘(i) the number of such reviews; 

‘‘(ii) the results of such reviews; 

‘‘(iii) the number of cases in which the representative payee 

was changed and why; 

‘‘(iv) the number of cases involving the exercise of expedited, targeted oversight of the representative payee by the 
H. R. 743—7 

Commissioner conducted upon receipt of an allegation of misuse 

of funds, failure to pay a vendor, or a similar irregularity; 

‘‘(v) the number of cases discovered in which there was 

a misuse of funds; 

‘‘(vi) how any such cases of misuse of funds were dealt 

with by the Commissioner; 

‘‘(vii) the final disposition of such cases of misuse of funds, 

including any criminal penalties imposed; and 

‘‘(viii) such other information as the Commissioner deems 

appropriate.’’. 

(2) TITLE VIII AMENDMENT.—Section 807 of such Act (as 

amended by section 101(b)(2) of this Act) is amended further 

by adding at the end the following: 

‘‘(k) PERIODIC ONSITE REVIEW.—

‘‘(1) IN GENERAL.—In addition to such other reviews of 

representative payees as the Commissioner of Social Security 

may otherwise conduct, the Commissioner may provide for the 

periodic onsite review of any person or agency that receives 

the benefits payable under this title (alone or in combination 

with benefits payable under title II or title XVI) to another 

individual pursuant to the appointment of such person or 

agency as a representative payee under this section, section 

205(j), or section 1631(a)(2) in any case in which—

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

in that capacity with respect to 15 or more such individuals; 

or 

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

in that capacity with respect to 50 or more such individuals. 

‘‘(2) REPORT.—Within 120 days after the end of each fiscal 

year, the Commissioner shall submit to the Committee on Ways 

and Means of the House of Representatives and the Committee 

on Finance of the Senate a report on the results of periodic 

onsite reviews conducted during the fiscal year pursuant to 

paragraph (1) and of any other reviews of representative payees 

conducted during such fiscal year in connection with benefits 

under this title. Each such report shall describe in detail all 

problems identified in such reviews and any corrective action 

taken or planned to be taken to correct such problems, and 

shall include—

‘‘(A) the number of such reviews; 

‘‘(B) the results of such reviews; 

‘‘(C) the number of cases in which the representative 

payee was changed and why; 

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

expedited, targeted oversight of the representative payee 

by the Commissioner conducted upon receipt of an allegation of misuse of funds, failure to pay a vendor, or a 

similar irregularity; 

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

was a misuse of funds; 

‘‘(F) how any such cases of misuse of funds were dealt 

with by the Commissioner; 

‘‘(G) the final disposition of such cases of misuse of 

funds, including any criminal penalties imposed; and 

‘‘(H) such other information as the Commissioner 

deems appropriate.’’. 
H. R. 743—8 

(3) TITLE XVI AMENDMENT.—Section 1631(a)(2)(G) of such 

Act (42 U.S.C. 1383(a)(2)(G)) is amended to read as follows: 

‘‘(G)(i) In addition to such other reviews of representative 

payees as the Commissioner of Social Security may otherwise conduct, the Commissioner shall provide for the periodic onsite review 

of any person or agency that receives the benefits payable under 

this title (alone or in combination with benefits payable under 

title II or title VIII) to another individual pursuant to the appointment of the person or agency as a representative payee under 

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

‘‘(I) the representative payee is a person who serves in 

that capacity with respect to 15 or more such individuals; 

‘‘(II) the representative payee is a certified communitybased nonprofit social service agency (as defined in subparagraph (I) of this paragraph or section 205(j)(9)); or 

‘‘(III) the representative payee is an agency (other than 

an agency described in subclause (II)) that serves in that 

capacity with respect to 50 or more such individuals. 

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

Commissioner shall submit to the Committee on Ways and Means 

of the House of Representatives and the Committee on Finance 

of the Senate a report on the results of periodic onsite reviews 

conducted during the fiscal year pursuant to clause (i) and of 

any other reviews of representative payees conducted during such 

fiscal year in connection with benefits under this title. Each such 

report shall describe in detail all problems identified in the reviews 

and any corrective action taken or planned to be taken to correct 

the problems, and shall include— ‘‘(I) the number of the reviews; 

‘‘(II) the results of such reviews; 

‘‘(III) the number of cases in which the representative 

payee was changed and why; ‘‘(IV) the number of cases involving the exercise of expedited, targeted oversight of the representative payee by the 

Commissioner conducted upon receipt of an allegation of misuse 

of funds, failure to pay a vendor, or a similar irregularity; ‘‘(V) the number of cases discovered in which there was 

a misuse of funds; ‘‘(VI) how any such cases of misuse of funds were dealt 

with by the Commissioner; ‘‘(VII) the final disposition of such cases of misuse of funds, 

including any criminal penalties imposed; and ‘‘(VIII) such other information as the Commissioner deems 

appropriate.’’. 

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. 

(a) TITLE II AMENDMENTS.—Section 205(j)(2) of the Social Security Act (42 U.S.C. 405(j)(2)) is amended— (1) in subparagraph (B)(i)— (A) by striking ‘‘and’’ at the end of subclause (III); 

(B) by redesignating subclause (IV) as subclause (VI); 

and 

(C) by inserting after subclause (III) the following: 
H. R. 743—9 

‘‘(IV) obtain information concerning whether such person 

has been convicted of any other offense under Federal or State 

law which resulted in imprisonment for more than 1 year, 

‘‘(V) obtain information concerning whether such person 

is a person described in section 202(x)(1)(A)(iv), and’’; 

(2) in subparagraph (B), by adding at the end the following: 

‘‘(iii) Notwithstanding the provisions of section 552a of title 

5, United States Code, or any other provision of Federal or State 

law (other than section 6103 of the Internal Revenue Code of 

1986 and section 1106(c) of this Act), the Commissioner shall furnish 

any Federal, State, or local law enforcement officer, upon the written request of the officer, with the current address, social security 

account number, and photograph (if applicable) of any person investigated under this paragraph, if the officer furnishes the Commissioner with the name of such person and such other identifying 

information as may reasonably be required by the Commissioner 

to establish the unique identity of such person, and notifies the 

Commissioner that—

‘‘(I) such person is described in section 202(x)(1)(A)(iv), 

‘‘(II) such person has information that is necessary for 

the officer to conduct the officer’s official duties, and 

‘‘(III) the location or apprehension of such person is within 

the officer’s official duties.’’; 

(3) in subparagraph (C)(i)(II)—

(A) by striking ‘‘subparagraph (B)(i)(IV),,’’ and inserting 

‘‘subparagraph (B)(i)(VI)’’; and 

(B) by striking ‘‘section 1631(a)(2)(B)(ii)(IV)’’ and 

inserting ‘‘section 1631(a)(2)(B)(ii)(VI)’’; and 

(4) in subparagraph (C)(i)— (A) by striking ‘‘or’’ at the end of subclause (II); 

(B) by striking the period at the end of subclause (III) and inserting a comma; and (C) by adding at the end the following: ‘‘(IV) such person has previously been convicted as described in subparagraph (B)(i)(IV), unless the Commissioner 

determines that such certification would be appropriate notwithstanding such conviction, or ‘‘(V) such person is a person described in section 

202(x)(1)(A)(iv).’’. (b) TITLE VIII AMENDMENTS.—Section 807 of such Act (42 

U.S.C. 1007) is amended—

(1) in subsection (b)(2)—

(A) by striking ‘‘and’’ at the end of subparagraph (C); 

(B) by redesignating subparagraph (D) as subparagraph (F); and 

(C) by inserting after subparagraph (C) the following: 

‘‘(D) obtain information concerning whether such person has been convicted of any other offense under Federal 

or State law which resulted in imprisonment for more 

than 1 year; 

‘‘(E) obtain information concerning whether such person is a person described in section 804(a)(2); and’’; 

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

‘‘(3) Notwithstanding the provisions of section 552a of title 

5, United States Code, or any other provision of Federal or 

State law (other than section 6103 of the Internal Revenue 

Code of 1986 and section 1106(c) of this Act), the Commissioner 
H. R. 743—10 

shall furnish any Federal, State, or local law enforcement 

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

address, social security account number, and photograph (if 

applicable) of any person investigated under this subsection, 

if the officer furnishes the Commissioner with the name of 

such person and such other identifying information as may 

reasonably be required by the Commissioner to establish the 

unique identity of such person, and notifies the Commissioner 

that—

‘‘(A) such person is described in section 804(a)(2), 

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

for the officer to conduct the officer’s official duties, and 

‘‘(C) the location or apprehension of such person is 

within the officer’s official duties.’’; and 

(3) in subsection (d)(1)—

(A) by striking ‘‘or’’ at the end of subparagraph (B); 

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

(C) and inserting a semicolon; and 

(C) by adding at the end the following: 

‘‘(D) such person has previously been convicted as 

described in subsection (b)(2)(D), unless the Commissioner 

determines that such payment would be appropriate notwithstanding such conviction; or 

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

804(a)(2).’’. 

(c) TITLE XVI AMENDMENTS.—Section 1631(a)(2)(B) of such Act 

(42 U.S.C. 1383(a)(2)(B)) is amended—

(1) in clause (ii)—

(A) by striking ‘‘and’’ at the end of subclause (III); 

(B) by redesignating subclause (IV) as subclause (VI); 

and 

(C) by inserting after subclause (III) the following: 

‘‘(IV) obtain information concerning whether the person 

has been convicted of any other offense under Federal or State 

law which resulted in imprisonment for more than 1 year; 

‘‘(V) obtain information concerning whether such person 

is a person described in section 1611(e)(4)(A); and’’; 

(2) in clause (iii)(II)—

(A) by striking ‘‘clause (ii)(IV)’’ and inserting ‘‘clause 

(ii)(VI)’’; and 

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

‘‘section 205(j)(2)(B)(i)(VI)’’; 

(3) in clause (iii)—

(A) by striking ‘‘or’’ at the end of subclause (II); 

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

(III) and inserting a semicolon; and 

(C) by adding at the end the following: 

‘‘(IV) the person has previously been convicted as described 

in clause (ii)(IV) of this subparagraph, unless the Commissioner 

determines that the payment would be appropriate notwithstanding the conviction; or ‘‘(V) such person is a person described in section 

1611(e)(4)(A).’’; and 

(4) by adding at the end the following: 

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

5, United States Code, or any other provision of Federal or State 

law (other than section 6103 of the Internal Revenue Code of 
H. R. 743—11 

1986 and section 1106(c) of this Act), the Commissioner shall furnish 

any Federal, State, or local law enforcement officer, upon the written request of the officer, with the current address, social security 

account number, and photograph (if applicable) of any person investigated under this subparagraph, if the officer furnishes the 

Commissioner with the name of such person and such other identifying information as may reasonably be required by the Commissioner to establish the unique identity of such person, and notifies 

the Commissioner that—

‘‘(I) such person is described in section 1611(e)(4)(A), 

‘‘(II) such person has information that is necessary for 

the officer to conduct the officer’s official duties, and 

‘‘(III) the location or apprehension of such person is within 

the officer’s official duties.’’. 

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

shall take effect on the first day of the thirteenth month beginning 

after the date of the enactment of this Act. 

(e) REPORT TO CONGRESS.—The Commissioner of Social Security, in consultation with the Inspector General of the Social Security Administration, shall prepare a report evaluating whether the 

existing procedures and reviews for the qualification (including 

disqualification) of representative payees are sufficient to enable 

the Commissioner to protect benefits from being misused by representative payees. The Commissioner shall submit the report to 

the Committee on Ways and Means of the House of Representatives 

and the Committee on Finance of the Senate no later than 270 

days after the date of the enactment of this Act. The Commissioner 

shall include in such report any recommendations that the Commissioner considers appropriate. 

SEC. 104. FEE FORFEITURE IN CASE OF BENEFIT MISUSE BY REPRESENTATIVE PAYEES. 

(a) TITLE II AMENDMENTS.—Section 205(j)(4)(A)(i) of the Social 

Security Act (42 U.S.C. 405(j)(4)(A)(i)) is amended—

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

‘‘Except as provided in the next sentence, a’’; and 

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

and inserting the following: ‘‘A qualified organization may not 

collect a fee from an individual for any month with respect 

to which the Commissioner of Social Security or a court of 

competent jurisdiction has determined that the organization 

misused all or part of the individual’s benefit, and any amount 

so collected by the qualified organization for such month shall 

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

purposes of paragraphs (5) and (6). The Commissioner’’. 

(b) TITLE XVI AMENDMENTS.—Section 1631(a)(2)(D)(i) of such 

Act (42 U.S.C. 1383(a)(2)(D)(i)) is amended—

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

‘‘Except as provided in the next sentence, a’’; and 

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

and inserting the following: ‘‘A qualified organization may not 

collect a fee from an individual for any month with respect 

to which the Commissioner of Social Security or a court of 

competent jurisdiction has determined that the organization 

misused all or part of the individual’s benefit, and any amount 

so collected by the qualified organization for such month shall 
H. R. 743—12 

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

purposes of subparagraphs (E) and (F). The Commissioner’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to any month involving benefit misuse by a representative payee in any case with respect to which the Commissioner 

of Social Security or a court of competent jurisdiction makes the 

determination of misuse after 180 days after the date of the enactment of this Act. 

SEC. 105. LIABILITY OF REPRESENTATIVE PAYEES FOR MISUSED 

BENEFITS. 

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

Act (42 U.S.C. 405(j)) (as amended by sections 101 and 102) is 

amended further—

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

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

‘‘paragraph (9)’’ and inserting ‘‘paragraph (10)’’; 

(3) in paragraph (6)(A)(ii), by striking ‘‘paragraph (9)’’ and 

inserting ‘‘paragraph (10)’’; and 

(4) by inserting after paragraph (6) the following: 

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

competent jurisdiction determines that a representative payee that 

is not a Federal, State, or local government agency has misused 

all or part of an individual’s benefit that was paid to such representative payee under this subsection, the representative payee shall 

be liable for the amount misused, and such amount (to the extent 

not repaid by the representative payee) shall be treated as an 

overpayment of benefits under this title to the representative payee 

for all purposes of this Act and related laws pertaining to the 

recovery of such overpayments. Subject to subparagraph (B), upon 

recovering all or any part of such amount, the Commissioner shall 

certify an amount equal to the recovered amount for payment 

to such individual or such individual’s alternative representative 

payee. 

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

individual or such individual’s alternative representative payee 

under subparagraph (A) and the amount certified for payment 

under paragraph (5) may not exceed the total benefit amount misused by the representative payee with respect to such individual.’’. 

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

amended by section 102(b)(2)) is amended further by adding at 

the end the following: 

‘‘(l) LIABILITY FOR MISUSED AMOUNTS.—

‘‘(1) IN GENERAL.—If the Commissioner of Social Security 

or a court of competent jurisdiction determines that a representative payee that is not a Federal, State, or local government 

agency has misused all or part of a qualified individual’s benefit 

that was paid to such representative payee under this section, 

the representative payee shall be liable for the amount misused, 

and such amount (to the extent not repaid by the representative 

payee) shall be treated as an overpayment of benefits under 

this title to the representative payee for all purposes of this 

Act and related laws pertaining to the recovery of such overpayments. Subject to paragraph (2), upon recovering all or any 

part of such amount, the Commissioner shall make payment 

of an amount equal to the recovered amount to such qualified 
H. R. 743—13 

individual or such qualified individual’s alternative representative payee. 

‘‘(2) LIMITATION.—The total of the amount paid to such 

individual or such individual’s alternative representative payee 

under paragraph (1) and the amount paid under subsection 

(i) may not exceed the total benefit amount misused by the 

representative payee with respect to such individual.’’. 

(c) TITLE XVI AMENDMENTS.—Section 1631(a)(2) of such Act 

(42 U.S.C. 1383(a)(2)) (as amended by section 102(b)(3)) is amended 

further—

(1) in subparagraph (G)(i)(II), by striking ‘‘section 205(j)(9)’’

and inserting ‘‘section 205(j)(10)’’; and 

(2) by striking subparagraph (H) and inserting the following: 

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

competent jurisdiction determines that a representative payee that 

is not a Federal, State, or local government agency has misused 

all or part of an individual’s benefit that was paid to the representative payee under this paragraph, the representative payee shall 

be liable for the amount misused, and the amount (to the extent 

not repaid by the representative payee) shall be treated as an 

overpayment of benefits under this title to the representative payee 

for all purposes of this Act and related laws pertaining to the 

recovery of the overpayments. Subject to clause (ii), upon recovering 

all or any part of the amount, the Commissioner shall make payment of an amount equal to the recovered amount to such individual 

or such individual’s alternative representative payee. 

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

individual’s alternative representative payee under clause (i) and 

the amount paid under subparagraph (E) may not exceed the total 

benefit amount misused by the representative payee with respect 

to such individual.’’. 

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

shall apply to benefit misuse by a representative payee in any 

case with respect to which the Commissioner of Social Security 

or a court of competent jurisdiction makes the determination of 

misuse after 180 days after the date of the enactment of this 

Act. 

SEC. 106. AUTHORITY TO REDIRECT DELIVERY OF BENEFIT PAYMENTS 

WHEN A REPRESENTATIVE PAYEE FAILS TO PROVIDE 

REQUIRED ACCOUNTING. 

(a) TITLE II AMENDMENTS.—Section 205(j)(3) of the Social Security Act (42 U.S.C. 405(j)(3)) (as amended by sections 102(a)(1)(B) 

and 105(a)(2)) is amended—

(1) by redesignating subparagraphs (E) and (F) as subparagraphs (F) and (G), respectively; and 

(2) by inserting after subparagraph (D) the following: 

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

(A) or (D) receiving payments on behalf of another fails to submit 

a report required by the Commissioner of Social Security under 

subparagraph (A) or (D), the Commissioner may, after furnishing 

notice to such person and the individual entitled to such payment, 

require that such person appear in person at a field office of 

the Social Security Administration serving the area in which the 

individual resides in order to receive such payments.’’. 
H. R. 743—14 

(b) TITLE VIII AMENDMENTS.—Section 807(h) of such Act (42 

U.S.C. 1007(h)) is amended—

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

(4) and (5), respectively; and 

(2) by inserting after paragraph (2) the following: 

‘‘(3) AUTHORITY TO REDIRECT DELIVERY OF BENEFIT PAYMENTS WHEN A REPRESENTATIVE PAYEE FAILS TO PROVIDE

REQUIRED ACCOUNTING.—In any case in which the person 

described in paragraph (1) or (2) receiving benefit payments 

on behalf of a qualified individual fails to submit a report 

required by the Commissioner of Social Security under paragraph (1) or (2), the Commissioner may, after furnishing notice 

to such person and the qualified individual, require that such 

person appear in person at a United States Government facility 

designated by the Social Security Administration as serving 

the area in which the qualified individual resides in order 

to receive such benefit payments.’’. 

(c) TITLE XVI AMENDMENT.—Section 1631(a)(2)(C) of such Act 

(42 U.S.C. 1383(a)(2)(C)) is amended by adding at the end the 

following: 

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

or (iv) receiving payments on behalf of another fails to submit 

a report required by the Commissioner of Social Security under 

clause (i) or (iv), the Commissioner may, after furnishing notice 

to the person and the individual entitled to the payment, require 

that such person appear in person at a field office of the Social 

Security Administration serving the area in which the individual 

resides in order to receive such payments.’’. 

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

shall take effect 180 days after the date of the enactment of this 

Act. 

SEC. 107. SURVEY OF USE OF PAYMENTS BY REPRESENTATIVE PAYEES. 

(a) IN GENERAL.—Section 1110 of the Social Security Act (42 

U.S.C. 1310) is amended by adding at the end the following: 

‘‘(c)(1) In addition to the amount otherwise appropriated in 

any other law to carry out subsection (a) for fiscal year 2004, 

up to $8,500,000 is authorized and appropriated and shall be used 

by the Commissioner of Social Security under this subsection for 

purposes of conducting a statistically valid survey to determine 

how payments made to individuals, organizations, and State or 

local government agencies that are representative payees for benefits paid under title II or XVI are being managed and used on 

behalf of the beneficiaries for whom such benefits are paid. 

‘‘(2) Not later than 18 months after the date of enactment 

of this subsection, the Commissioner of Social Security shall submit 

a report on the survey conducted in accordance with paragraph 

(1) to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate.’’. 
H. R. 743—15 

Subtitle B—Enforcement 

SEC. 111. CIVIL MONETARY PENALTY AUTHORITY WITH RESPECT TO 

WRONGFUL CONVERSIONS BY REPRESENTATIVE 

PAYEES. 

(a) IN GENERAL.—Section 1129(a) of the Social Security Act 

(42 U.S.C. 1320a–8) is amended by adding at the end the following: 

‘‘(3) Any person (including an organization, agency, or other 

entity) who, having received, while acting in the capacity of a 

representative payee pursuant to section 205(j), 807, or 1631(a)(2), 

a payment under title II, VIII, or XVI for the use and benefit 

of another individual, converts such payment, or any part thereof, 

to a use that such person knows or should know is other than 

for the use and benefit of such other individual shall be subject 

to, in addition to any other penalties that may be prescribed by 

law, a civil money penalty of not more than $5,000 for each such 

conversion. Such person shall also be subject to an assessment, 

in lieu of damages sustained by the United States resulting from 

the conversion, of not more than twice the amount of any payments 

so converted.’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall apply with respect to violations committed after the date 

of the enactment of this Act. 

TITLE II—PROGRAM PROTECTIONS 

SEC. 201. CIVIL MONETARY PENALTY AUTHORITY WITH RESPECT TO 

WITHHOLDING OF MATERIAL FACTS. 

(a) TREATMENT OF WITHHOLDING OF MATERIAL FACTS.—

(1) CIVIL PENALTIES.—Section 1129(a)(1) of the Social Security Act (42 U.S.C. 1320a–8(a)(1)) is amended—

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

‘‘who—’’; 

(B) by striking ‘‘makes’’ in the first sentence and all 

that follows through ‘‘shall be subject to,’’ and inserting 

the following: 

‘‘(A) makes, or causes to be made, a statement or representation of a material fact, for use in determining any initial 

or continuing right to or the amount of monthly insurance 

benefits under title II or benefits or payments under title VIII 

or XVI, that the person knows or should know is false or 

misleading, 

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

use with knowing disregard for the truth, or 

‘‘(C) omits from a statement or representation for such 

use, or otherwise withholds disclosure of, a fact which the 

person knows or should know is material to the determination 

of any initial or continuing right to or the amount of monthly 

insurance benefits under title II or benefits or payments under 

title VIII or XVI, if the person knows, or should know, that 

the statement or representation with such omission is false 

or misleading or that the withholding of such disclosure is 

misleading, 

shall be subject to,’’; 
H. R. 743—16 

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

payments while withholding disclosure of such fact’’ after 

‘‘each such statement or representation’’ in the first sentence; 

(D) by inserting ‘‘or because of such withholding of 

disclosure of a material fact’’ after ‘‘because of such statement or representation’’ in the second sentence; and 

(E) by inserting ‘‘or such a withholding of disclosure’’

after ‘‘such a statement or representation’’ in the second 

sentence. 

(2) ADMINISTRATIVE PROCEDURE FOR IMPOSING PENALTIES.—

Section 1129A(a) of such Act (42 U.S.C. 1320a–8a(a)) is 

amended—

(A) by striking ‘‘who’’ the first place it appears and 

inserting ‘‘who—’’; and 

(B) by striking ‘‘makes’’ and all that follows through 

‘‘shall be subject to,’’ and inserting the following: 

‘‘(1) makes, or causes to be made, a statement or representation of a material fact, for use in determining any initial 

or continuing right to or the amount of monthly insurance 

benefits under title II or benefits or payments under title XVI 

that the person knows or should know is false or misleading, 

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

use with knowing disregard for the truth, or 

‘‘(3) omits from a statement or representation for such 

use, or otherwise withholds disclosure of, a fact which the 

person knows or should know is material to the determination 

of any initial or continuing right to or the amount of monthly 

insurance benefits under title II or benefits or payments under 

title XVI, if the person knows, or should know, that the statement or representation with such omission is false or misleading or that the withholding of such disclosure is misleading, 

shall be subject to,’’. 

(b) CLARIFICATION OF TREATMENT OF RECOVERED AMOUNTS.—

Section 1129(e)(2)(B) of such Act (42 U.S.C. 1320a–8(e)(2)(B)) is 

amended by striking ‘‘In the case of amounts recovered arising 

out of a determination relating to title VIII or XVI,’’ and inserting 

‘‘In the case of any other amounts recovered under this section,’’. 

(c) CONFORMING AMENDMENTS.—

(1) Section 1129(b)(3)(A) of such Act (42 U.S.C. 1320a–

8(b)(3)(A)) is amended by striking ‘‘charging fraud or false 

statements’’. 

(2) Section 1129(c)(1) of such Act (42 U.S.C. 1320a–8(c)(1)) 

is amended by striking ‘‘and representations’’ and inserting 

‘‘, representations, or actions’’. 

(3) Section 1129(e)(1)(A) of such Act (42 U.S.C. 1320a–

8(e)(1)(A)) is amended by striking ‘‘statement or representation 

referred to in subsection (a) was made’’ and inserting ‘‘violation 

occurred’’. 

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

shall apply with respect to violations committed after the date 

on which the Commissioner of Social Security implements the centralized computer file described in section 202. 
H. R. 743—17 

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. 

Effective as soon as possible, but not later than 1 year after 

the date of the enactment of this Act, until such time as the 

Commissioner of Social Security implements a centralized computer 

file recording the date of the submission of information by a disabled 

beneficiary (or representative) regarding a change in the beneficiary’s work or earnings status, the Commissioner shall issue 

a receipt to the disabled beneficiary (or representative) each time 

he or she submits documentation, or otherwise reports to the 

Commissioner, on a change in such status. 

SEC. 203. DENIAL OF TITLE II BENEFITS TO PERSONS FLEEING 

PROSECUTION, CUSTODY, OR CONFINEMENT, AND TO 

PERSONS VIOLATING PROBATION OR PAROLE. 

(a) IN GENERAL.—Section 202(x) of the Social Security Act 

(42 U.S.C. 402(x)) is amended—

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

follows and inserting the following: ‘‘Prisoners, Certain Other 

Inmates of Publicly Funded Institutions, Fugitives, Probationers, and Parolees’’; 

(2) in paragraph (1)(A)(ii)(IV), by striking ‘‘or’’ at the end; 

(3) in paragraph (1)(A)(iii), by striking the period at the 

end and inserting a comma; 

(4) by inserting after paragraph (1)(A)(iii) the following: 

‘‘(iv) is fleeing to avoid prosecution, or custody or confinement after conviction, under the laws of the place from which 

the person flees, for a crime, or an attempt to commit a crime, 

which is a felony under the laws of the place from which 

the person flees, or, in jurisdictions that do not define crimes 

as felonies, is punishable by death or imprisonment for a term 

exceeding 1 year regardless of the actual sentence imposed, 

or 

‘‘(v) is violating a condition of probation or parole imposed 

under Federal or State law.’’; 

(5) by adding at the end of paragraph (1)(B) the following: 

‘‘(iii) Notwithstanding subparagraph (A), the Commissioner 

shall, for good cause shown, pay the individual benefits that have 

been withheld or would otherwise be withheld pursuant to clause 

(iv) or (v) of subparagraph (A) if the Commissioner determines 

that—

‘‘(I) a court of competent jurisdiction has found the individual not guilty of the criminal offense, dismissed the charges 

relating to the criminal offense, vacated the warrant for arrest 

of the individual for the criminal offense, or issued any similar 

exonerating order (or taken similar exonerating action), or 

‘‘(II) the individual was erroneously implicated in connection with the criminal offense by reason of identity fraud. 

‘‘(iv) Notwithstanding subparagraph (A), the Commissioner 

may, for good cause shown based on mitigating circumstances, 

pay the individual benefits that have been withheld or would otherwise be withheld pursuant to clause (iv) or (v) of subparagraph 

(A) if the Commissioner determines that—
H. R. 743—18 

‘‘(I) the offense described in clause (iv) or underlying the 

imposition of the probation or parole described in clause (v) 

was nonviolent and not drug-related, and 

‘‘(II) in the case of an individual from whom benefits have 

been withheld or otherwise would be withheld pursuant to 

subparagraph (A)(v), the action that resulted in the violation 

of a condition of probation or parole was nonviolent and not 

drug-related.’’; and 

(6) in paragraph (3), by adding at the end the following: 

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

5, United States Code, or any other provision of Federal or State 

law (other than section 6103 of the Internal Revenue Code of 

1986 and section 1106(c) of this Act), the Commissioner shall furnish 

any Federal, State, or local law enforcement officer, upon the written request of the officer, with the current address, Social Security 

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

this title, if the officer furnishes the Commissioner with the name 

of the beneficiary, and other identifying information as reasonably 

required by the Commissioner to establish the unique identity 

of the beneficiary, and notifies the Commissioner that—

‘‘(i) the beneficiary is described in clause (iv) or (v) of 

paragraph (1)(A); and 

‘‘(ii) the location or apprehension of the beneficiary is within 

the officer’s official duties.’’. 

(b) CONFORMING AMENDMENTS TO TITLE XVI.—Section 1611(e) 

of the Social Security Act (42 U.S.C. 1382(e)) is amended—

(1) in paragraph (4)—

(A) by redesignating subparagraphs (A) and (B) as 

clauses (i) and (ii), respectively; 

(B) by inserting ‘‘(A)’’ after ‘‘(4)’’; 

(C) in clause (i) of subparagraph (A) (as redesignated 

by subparagraph (A)), by striking ‘‘or which, in the case 

of the State of New Jersey, is a high misdemeanor under 

the laws of such State’’ and inserting ‘‘or, in jurisdictions 

that do not define crimes as felonies, is punishable by 

death or imprisonment for a term exceeding 1 year regardless of the actual sentence imposed’’; and 

(D) by adding at the end the following: 

‘‘(B) Notwithstanding subparagraph (A), the Commissioner 

shall, for good cause shown, treat the person referred to in subparagraph (A) as an eligible individual or eligible spouse if the Commissioner determines that—

‘‘(i) a court of competent jurisdiction has found the person 

not guilty of the criminal offense, dismissed the charges relating 

to the criminal offense, vacated the warrant for arrest of the 

person for the criminal offense, or issued any similar exonerating order (or taken similar exonerating action), or 

‘‘(ii) the person was erroneously implicated in connection 

with the criminal offense by reason of identity fraud. 

‘‘(C) Notwithstanding subparagraph (A), the Commissioner 

may, for good cause shown based on mitigating circumstances, 

treat the person referred to in subparagraph (A) as an eligible 

individual or eligible spouse if the Commissioner determines that—

‘‘(i) the offense described in subparagraph (A)(i) or underlying the imposition of the probation or parole described in 

subparagraph (A)(ii) was nonviolent and not drug-related, and 
H. R. 743—19 

‘‘(ii) in the case of a person who is not considered an 

eligible individual or eligible spouse pursuant to subparagraph 

(A)(ii), the action that resulted in the violation of a condition 

of probation or parole was nonviolent and not drug-related.’’; 

and 

(2) in paragraph (5), by striking subparagraphs (A) and 

(B) and inserting the following: 

‘‘(A) the recipient is described in clause (i) or (ii) of paragraph (4)(A); and 

‘‘(B) the location or apprehension of the recipient is within 

the officer’s official duties.’’. 

(c) CONFORMING AMENDMENT.—Section 804(a)(2) of the Social 

Security Act (42 U.S.C. 1004(a)(2)) is amended by striking ‘‘or 

which, in the case of the State of New Jersey, is a high misdemeanor 

under the laws of such State’’ and inserting ‘‘or, in jurisdictions 

that do not define crimes as felonies, is punishable by death or 

imprisonment for a term exceeding 1 year regardless of the actual 

sentence imposed’’. 

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

shall take effect on the first day of the first month that begins 

on or after the date that is 9 months after the date of enactment 

of this Act. 

SEC. 204. REQUIREMENTS RELATING TO OFFERS TO PROVIDE FOR 

A FEE, A PRODUCT OR SERVICE AVAILABLE WITHOUT 

CHARGE FROM THE SOCIAL SECURITY ADMINISTRATION. 

(a) IN GENERAL.—Section 1140 of the Social Security Act (42 

U.S.C. 1320b–10) is amended—

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

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

to obtain a product or service that the person knows or should 

know is provided free of charge by the Social Security Administration unless, at the time the offer is made, the person provides 

to the individual to whom the offer is tendered a notice that—

‘‘(i) explains that the product or service is available free 

of charge from the Social Security Administration, and 

‘‘(ii) complies with standards prescribed by the Commissioner of Social Security respecting the content of such notice 

and its placement, visibility, and legibility. 

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

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

with a claim arising under title II, title VIII, or title XVI; 

or 

‘‘(ii) to prepare, or assist in the preparation of, an individual’s plan for achieving self-support under title XVI.’’; and 

(2) in the heading, by striking ‘‘PROHIBITION OF MISUSE

OF SYMBOLS, EMBLEMS, OR NAMES IN REFERENCE’’ and inserting 

‘‘PROHIBITIONS RELATING TO REFERENCES’’. 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply to offers of assistance made after the sixth month 

ending after the Commissioner of Social Security promulgates final 

regulations prescribing the standards applicable to the notice 

required to be provided in connection with such offer. The Commissioner shall promulgate such final regulations within 1 year after 

the date of the enactment of this Act. 
H. R. 743—20 

SEC. 205. REFUSAL TO RECOGNIZE CERTAIN INDIVIDUALS AS CLAIMANT REPRESENTATIVES. 

Section 206(a)(1) of the Social Security Act (42 U.S.C. 406(a)(1)) is amended by inserting after the second sentence the following: 

‘‘Notwithstanding the preceding sentences, the Commissioner, after 

due notice and opportunity for hearing, (A) may refuse to recognize 

as a representative, and may disqualify a representative already 

recognized, any attorney who has been disbarred or suspended 

from any court or bar to which he or she was previously admitted 

to practice or who has been disqualified from participating in or 

appearing before any Federal program or agency, and (B) may 

refuse to recognize, and may disqualify, as a non-attorney representative any attorney who has been disbarred or suspended from 

any court or bar to which he or she was previously admitted 

to practice. A representative who has been disqualified or suspended pursuant to this section from appearing before the Social 

Security Administration as a result of collecting or receiving a 

fee in excess of the amount authorized shall be barred from 

appearing before the Social Security Administration as a representative until full restitution is made to the claimant and, thereafter, 

may be considered for reinstatement only under such rules as 

the Commissioner may prescribe.’’. 

SEC. 206. CRIMINAL PENALTY FOR CORRUPT OR FORCIBLE INTERFERENCE WITH ADMINISTRATION OF SOCIAL SECURITY 

ACT. 

Part A of title XI of the Social Security Act (42 U.S.C. 1301 

et seq.) is amended by inserting after section 1129A the following: 

‘‘ATTEMPTS TO INTERFERE WITH ADMINISTRATION OF SOCIAL

SECURITY ACT

‘‘SEC. 1129B. Whoever corruptly or by force or threats of force (including any threatening letter or communication) attempts to 

intimidate or impede any officer, employee, or contractor of the 

Social Security Administration (including any State employee of 

a disability determination service or any other individual designated 

by the Commissioner of Social Security) acting in an official capacity 

to carry out a duty under this Act, or in any other way corruptly 

or by force or threats of force (including any threatening letter 

or communication) obstructs or impedes, or attempts to obstruct 

or impede, the due administration of this Act, shall be fined not 

more than $5,000, imprisoned not more than 3 years, or both, 

except that if the offense is committed only by threats of force, 

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

more than 1 year, or both. In this subsection, the term ‘threats 

of force’ means threats of harm to the officer or employee of the 

United States or to a contractor of the Social Security Administration, or to a member of the family of such an officer or employee 

or contractor.’’. 

SEC. 207. USE OF SYMBOLS, EMBLEMS, OR NAMES IN REFERENCE TO 

SOCIAL SECURITY OR MEDICARE. 

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

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

(1) in subparagraph (A), by inserting ‘‘ ‘Centers for Medicare 

& Medicaid Services’,’’ after ‘‘ ‘Health Care Financing Administration’,’’, by striking ‘‘or ‘Medicaid’, ’’ and inserting ‘‘ ‘Medicaid’, 
H. R. 743—21 

‘Death Benefits Update’, ‘Federal Benefit Information’, ‘Funeral 

Expenses’, or ‘Final Supplemental Plan’,’’ and by inserting 

‘‘ ‘CMS’,’’ after ‘‘ ‘HCFA’,’’; 

(2) in subparagraph (B), by inserting ‘‘Centers for Medicare 

& Medicaid Services,’’ after ‘‘Health Care Financing Administration,’’ each place it appears; and 

(3) in the matter following subparagraph (B), by striking 

‘‘the Health Care Financing Administration,’’ each place it 

appears and inserting ‘‘the Centers for Medicare & Medicaid 

Services,’’. 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply to items sent after 180 days after the date of the 

enactment of this Act. 

SEC. 208. DISQUALIFICATION FROM PAYMENT DURING TRIAL WORK 

PERIOD UPON CONVICTION OF FRAUDULENT CONCEALMENT OF WORK ACTIVITY. 

(a) IN GENERAL.—Section 222(c) of the Social Security Act (42 

U.S.C. 422(c)) is amended by adding at the end the following: 

‘‘(5) Upon conviction by a Federal court that an individual 

has fraudulently concealed work activity during a period of trial 

work from the Commissioner of Social Security by—

‘‘(A) providing false information to the Commissioner of 

Social Security as to whether the individual had earnings in 

or for a particular period, or as to the amount thereof; 

‘‘(B) receiving disability insurance benefits under this title 

while engaging in work activity under another identity, 

including under another social security account number or a 

number purporting to be a social security account number; 

or 

‘‘(C) taking other actions to conceal work activity with 

an intent fraudulently to secure payment in a greater amount 

than is due or when no payment is authorized, 

no benefit shall be payable to such individual under this title 

with respect to a period of disability for any month before such 

conviction during which the individual rendered services during 

the period of trial work with respect to which the fraudulently 

concealed work activity occurred, and amounts otherwise due under 

this title as restitution, penalties, assessments, fines, or other repayments shall in all cases be in addition to any amounts for which 

such individual is liable as overpayments by reason of such concealment.’’. 

(b) EFFECTIVE DATE.—The amendment made by subsection (a) 

shall apply with respect to work activity performed after the date 

of the enactment of this Act. 

SEC. 209. AUTHORITY FOR JUDICIAL ORDERS OF RESTITUTION. 

(a) AMENDMENTS TO TITLE II.—Section 208 of the Social Security Act (42 U.S.C. 408) is amended—

(1) by redesignating subsections (b), (c), and (d) as subsections (c), (d), and (e), respectively; 

(2) by inserting after subsection (a) the following: 

‘‘(b)(1) Any Federal court, when sentencing a defendant convicted of an offense under subsection (a), may order, in addition 

to or in lieu of any other penalty authorized by law, that the 

defendant make restitution to the victims of such offense specified 

in paragraph (4). 
H. R. 743—22 

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

Code, shall apply with respect to the issuance and enforcement 

of orders of restitution to victims of such offense under this subsection. 

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

partial restitution, under this subsection, the court shall state on 

the record the reasons therefor. 

‘‘(4) For purposes of paragraphs (1) and (2), the victims of 

an offense under subsection (a) are the following: 

‘‘(A) Any individual who suffers a financial loss as a result 

of the defendant’s violation of subsection (a). 

‘‘(B) The Commissioner of Social Security, to the extent 

that the defendant’s violation of subsection (a) results in—

‘‘(i) the Commissioner of Social Security making a benefit payment that should not have been made; or 

‘‘(ii) an individual suffering a financial loss due to 

the defendant’s violation of subsection (a) in his or her 

capacity as the individual’s representative payee appointed 

pursuant to section 205(j). 

‘‘(5)(A) Except as provided in subparagraph (B), funds paid 

to the Commissioner of Social Security as restitution pursuant 

to a court order shall be deposited in the Federal Old-Age and 

Survivors Insurance Trust Fund, or the Federal Disability Insurance Trust Fund, as appropriate. 

‘‘(B) In the case of funds paid to the Commissioner of Social 

Security pursuant to paragraph (4)(B)(ii), the Commissioner of 

Social Security shall certify for payment to the individual described 

in such paragraph an amount equal to the lesser of the amount 

of the funds so paid or the individual’s outstanding financial loss, 

except that such amount may be reduced by the amount of any 

overpayments of benefits owed under this title, title VIII, or title 

XVI by the individual.’’; and 

(3) by amending subsection (c) (as redesignated by para- graph (1)), by striking the second sentence. 

(b) AMENDMENTS TO TITLE VIII.—Section 811 of the Social 

Security Act (42 U.S.C. 1011) is amended—

(1) by striking subsection (b) and inserting the following: 

‘‘(b) COURT ORDER FOR RESTITUTION.—

‘‘(1) IN GENERAL.—Any Federal court, when sentencing a 

defendant convicted of an offense under subsection (a), may 

order, in addition to or in lieu of any other penalty authorized 

by law, that the defendant make restitution to the Commissioner of Social Security, in any case in which such offense 

results in—

‘‘(A) the Commissioner of Social Security making a 

benefit payment that should not have been made, or 

‘‘(B) an individual suffering a financial loss due to 

the defendant’s violation of subsection (a) in his or her 

capacity as the individual’s representative payee appointed 

pursuant to section 807(i). 

‘‘(2) RELATED PROVISIONS.—Sections 3612, 3663, and 3664 

of title 18, United States Code, shall apply with respect to 

the issuance and enforcement of orders of restitution under 

this subsection. In so applying such sections, the Commissioner 

of Social Security shall be considered the victim. ‘‘(3) STATED REASONS FOR NOT ORDERING RESTITUTION.— If the court does not order restitution, or orders only partial 
H. R. 743—23 

restitution, under this subsection, the court shall state on the 

record the reasons therefor. 

‘‘(4) RECEIPT OF RESTITUTION PAYMENTS.—

‘‘(A) IN GENERAL.—Except as provided in subparagraph 

(B), funds paid to the Commissioner of Social Security 

as restitution pursuant to a court order shall be deposited 

as miscellaneous receipts in the general fund of the 

Treasury. 

‘‘(B) PAYMENT TO THE INDIVIDUAL.—In the case of funds 

paid to the Commissioner of Social Security pursuant to 

paragraph (1)(B), the Commissioner of Social Security shall 

certify for payment to the individual described in such 

paragraph an amount equal to the lesser of the amount 

of the funds so paid or the individual’s outstanding financial loss as described in such paragraph, except that such 

amount may be reduced by any overpayment of benefits 

owed under this title, title II, or title XVI by the individual.’’. 

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

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

(1) by redesignating subsection (b) as subsection (c); and 

(2) by inserting after subsection (a) the following: 

‘‘(b)(1) Any Federal court, when sentencing a defendant convicted of an offense under subsection (a), may order, in addition 

to or in lieu of any other penalty authorized by law, that the 

defendant make restitution to the Commissioner of Social Security, 

in any case in which such offense results in—

‘‘(A) the Commissioner of Social Security making a benefit 

payment that should not have been made, or 

‘‘(B) an individual suffering a financial loss due to the 

defendant’s violation of subsection (a) in his or her capacity 

as the individual’s representative payee appointed pursuant 

to section 1631(a)(2). 

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

Code, shall apply with respect to the issuance and enforcement 

of orders of restitution under this subsection. In so applying such 

sections, the Commissioner of Social Security shall be considered 

the victim. 

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

partial restitution, under this subsection, the court shall state on 

the record the reasons therefor. 

‘‘(4)(A) Except as provided in subparagraph (B), funds paid 

to the Commissioner of Social Security as restitution pursuant 

to a court order shall be deposited as miscellaneous receipts in 

the general fund of the Treasury. 

‘‘(B) In the case of funds paid to the Commissioner of Social 

Security pursuant to paragraph (1)(B), the Commissioner of Social 

Security shall certify for payment to the individual described in 

such paragraph an amount equal to the lesser of the amount 

of the funds so paid or the individual’s outstanding financial loss 

as described in such paragraph, except that such amount may 

be reduced by any overpayment of benefits owed under this title, 

title II, or title VIII by the individual.’’; and 

(3) by amending subsection (c) (as redesignated by paragraph (1)) by striking ‘‘(1) If a person’’ and all that follows 

through ‘‘(2)’’. 
H. R. 743—24 

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

(a), (b), and (c) shall apply with respect to violations occurring 

on or after the date of enactment of this Act. 

SEC. 210. AUTHORITY FOR CROSS-PROGRAM RECOVERY OF BENEFIT 

OVERPAYMENTS. 

(a) IN GENERAL.—Section 1147 of the Social Security Act (42 

U.S.C. 1320b–17) is amended to read as follows: 

‘‘CROSS-PROGRAM RECOVERY OF OVERPAYMENTS FROM BENEFITS

‘‘(a) IN GENERAL.—Subject to subsection (b), whenever the 

Commissioner of Social Security determines that more than the 

correct amount of any payment has been made to a person under 

a program described in subsection (e), the Commissioner of Social 

Security may recover the amount incorrectly paid by decreasing 

any amount which is payable to such person under any other 

program specified in that subsection. 

‘‘(b) LIMITATION APPLICABLE TO CURRENT BENEFITS.—

‘‘(1) IN GENERAL.—In carrying out subsection (a), the 

Commissioner of Social Security may not decrease the monthly 

amount payable to an individual under a program described 

in subsection (e) that is paid when regularly due—

‘‘(A) in the case of benefits under title II or VIII, 

by more than 10 percent of the amount of the benefit 

payable to the person for that month under such title; 

and 

‘‘(B) in the case of benefits under title XVI, by an 

amount greater than the lesser of—

‘‘(i) the amount of the benefit payable to the person 

for that month; or 

‘‘(ii) an amount equal to 10 percent of the person’s 

income for that month (including such monthly benefit 

but excluding payments under title II when recovery 

is also made from title II payments and excluding 

income excluded pursuant to section 1612(b)). 

‘‘(2) EXCEPTION.—Paragraph (1) shall not apply if—

‘‘(A) the person or the spouse of the person was involved 

in willful misrepresentation or concealment of material 

information in connection with the amount incorrectly paid; 

or 

‘‘(B) the person so requests. 

‘‘(c) NO EFFECT ON ELIGIBILITY OR BENEFIT AMOUNT UNDER

TITLE VIII OR XVI.—In any case in which the Commissioner of 

Social Security takes action in accordance with subsection (a) to 

recover an amount incorrectly paid to any person, neither that 

person, nor (with respect to the program described in subsection 

(e)(3)) any individual whose eligibility for benefits under such program or whose amount of such benefits, is determined by considering any part of that person’s income, shall, as a result of such 

action—

‘‘(1) become eligible for benefits under the program 

described in paragraph (2) or (3) of subsection (e); or 

‘‘(2) if such person or individual is otherwise so eligible, 

become eligible for increased benefits under such program. 

‘‘(d) INAPPLICABILITY OF PROHIBITION AGAINST ASSESSMENT AND

LEGAL PROCESS.—Section 207 shall not apply to actions taken under 
H. R. 743—25 

the provisions of this section to decrease amounts payable under 

titles II and XVI. 

‘‘(e) PROGRAMS DESCRIBED.—The programs described in this 

subsection are the following: 

‘‘(1) The old-age, survivors, and disability insurance benefits program under title II. 

‘‘(2) The special benefits for certain World War II veterans 

program under title VIII. 

‘‘(3) The supplemental security income benefits program 

under title XVI (including, for purposes of this section, State 

supplementary payments paid by the Commissioner pursuant 

to an agreement under section 1616(a) of this Act or section 

212(b) of Public Law 93–66).’’. 

(b) CONFORMING AMENDMENTS.—

(1) Section 204(g) of the Social Security Act (42 U.S.C. 

404(g)) is amended to read as follows: 

‘‘(g) For provisions relating to the cross-program recovery of 

overpayments made under programs administered by the Commissioner of Social Security, see section 1147.’’. 

(2) Section 808 of the Social Security Act (42 U.S.C. 1008) 

is amended—

(A) in subsection (a)(1)—

(i) by striking subparagraph (B); 

(ii) in the matter preceding subparagraph (A), by 

striking ‘‘any payment’’ and all that follows through 

‘‘under this title’’ and inserting ‘‘any payment under 

this title’’; and 

(iii) by striking ‘‘; or’’ and inserting a period; 

(B) by striking subsection (b) and redesignating subsections (c), (d), and (e) as subsections (b), (c), and (d), 

respectively; and 

(C) by adding at the end the following: 

‘‘(e) CROSS-PROGRAM RECOVERY OF OVERPAYMENTS.—For provisions relating to the cross-program recovery of overpayments made 

under programs administered by the Commissioner of Social Security, see section 1147.’’. 

(3) Section 1147A of the Social Security Act (42 U.S.C. 

1320b–18) is repealed. 

(4) Section 1631(b) of the Social Security Act (42 U.S.C. 

1383(b)) is amended—

(A) in paragraph (1)(B)—

(i) by striking ‘‘excluding any other’’ and inserting 

‘‘excluding payments under title II when recovery is 

made from title II payments pursuant to section 1147 

and excluding’’; and 

(ii) by striking ‘‘50 percent of’’; and 

(B) by striking paragraph (6) and inserting the following: 

‘‘(6) For provisions relating to the cross-program recovery of 

overpayments made under programs administered by the Commissioner of Social Security, see section 1147.’’. 

(c) EFFECTIVE DATE.—The amendments and repeal made by 

this section shall take effect on the date of enactment of this 

Act, and shall be effective with respect to overpayments under 

titles II, VIII, and XVI of the Social Security Act that are outstanding on or after such date. 
H. R. 743—26 

SEC. 211. PROHIBITION ON PAYMENT OF TITLE II BENEFITS TO PERSONS NOT AUTHORIZED TO WORK IN THE UNITED 

STATES. 

(a) FULLY INSURED AND CURRENTLY INSURED INDIVIDUALS.—

Section 214 (42 U.S.C. 414) is amended—

(1) in subsection (a), by inserting before the period at 

the end the following: ‘‘, and who satisfies the criterion specified 

in subsection (c)’’; 

(2) in subsection (b), by inserting before the period at 

the end the following: ‘‘, and who satisfies the criterion specified 

in subsection (c)’’; and 

(3) by adding at the end the following: 

‘‘(c) For purposes of subsections (a) and (b), the criterion specified in this subsection is that the individual, if not a United States 

citizen or national—

‘‘(1) has been assigned a social security account number 

that was, at the time of assignment, or at any later time, 

consistent with the requirements of subclause (I) or (III) of 

section 205(c)(2)(B)(i); or 

‘‘(2) at the time any such quarters of coverage are earned—

‘‘(A) is described in subparagraph (B) or (D) of section 

101(a)(15) of the Immigration and Nationality Act, 

‘‘(B) is lawfully admitted temporarily to the United 

States for business (in the case of an individual described 

in such subparagraph (B)) or the performance as a crewman 

(in the case of an individual described in such subparagraph (D)), and 

‘‘(C) the business engaged in or service as a crewman 

performed is within the scope of the terms of such individual’s admission to the United States.’’. 

(b) DISABILITY BENEFITS.—Section 223(a)(1) of the Social Security Act (42 U.S.C. 423(a)(1)) is amended—

(1) by redesignating subparagraphs (C) and (D) as subparagraphs (D) and (E), respectively; and 

(2) by inserting after subparagraph (B), the following: 

‘‘(C) if not a United States citizen or national—

‘‘(i) has been assigned a social security account number 

that was, at the time of assignment, or at any later time, 

consistent with the requirements of subclause (I) or (III) 

of section 205(c)(2)(B)(i); or 

‘‘(ii) at the time any quarters of coverage are earned—

‘‘(I) is described in subparagraph (B) or (D) of 

section 101(a)(15) of the Immigration and Nationality 

Act, 

‘‘(II) is lawfully admitted temporarily to the United 

States for business (in the case of an individual 

described in such subparagraph (B)) or the performance 

as a crewman (in the case of an individual described 

in such subparagraph (D)), and 

‘‘(III) the business engaged in or service as a crewman performed is within the scope of the terms of 

such individual’s admission to the United States.’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

apply to benefit applications based on social security account numbers issued on or after January 1, 2004. 
H. R. 743—27 

TITLE III—ATTORNEY REPRESENTATIVE FEE PAYMENT SYSTEM IMPROVEMENTS 

SEC. 301. CAP ON ATTORNEY ASSESSMENTS. 

(a) IN GENERAL.—Section 206(d)(2)(A) of the Social Security Act (42 U.S.C. 406(d)(2)(A)) is amended— (1) by inserting ‘‘, except that the maximum amount of 

the assessment may not exceed the greater of $75 or the 

adjusted amount as provided pursuant to the following two 

sentences’’ after ‘‘subparagraph (B)’’; and 

(2) by adding at the end the following: ‘‘In the case of 

any calendar year beginning after the amendments made by 

section 301 of the Social Security Protection Act of 2003 take 

effect, the dollar amount specified in the preceding sentence 

(including a previously adjusted amount) shall be adjusted 

annually under the procedures used to adjust benefit amounts 

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

based on the higher of $75 or the previously adjusted amount 

that would have been in effect for December of the preceding 

year, but for the rounding of such amount pursuant to the 

following sentence. Any amount so adjusted that is not a multiple of $1 shall be rounded to the next lowest multiple of 

$1, but in no case less than $75.’’. 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply with respect to fees for representation of claimants 

which are first required to be certified or paid under section 206 

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

month that begins after 180 days after the date of the enactment 

of this Act. 

SEC. 302. TEMPORARY EXTENSION OF ATTORNEY FEE PAYMENT 

SYSTEM TO TITLE XVI CLAIMS. 

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

(42 U.S.C. 1383(d)(2)) is amended—

(1) in subparagraph (A), in the matter preceding clause 

(i)—

(A) by striking ‘‘section 206(a)’’ and inserting ‘‘section 

206’’; 

(B) by striking ‘‘(other than paragraph (4) thereof)’’

and inserting ‘‘(other than subsections (a)(4) and (d) 

thereof)’’; and 

(C) by striking ‘‘paragraph (2) thereof’’ and inserting ‘‘such section’’; 

(2) in subparagraph (A)(i)— (A) by striking ‘‘in subparagraphs (A)(ii)(I) and (C)(i),’’ and inserting ‘‘in subparagraphs (A)(ii)(I) and (D)(i) of sub- section (a)(2)’’; and 

(B) by striking ‘‘and’’ at the end; 

(3) by striking subparagraph (A)(ii) and inserting the following: 

‘‘(ii) by substituting, in subsections (a)(2)(B) and (b)(1)(B)(i), 

the phrase ‘paragraph (7)(A) or (8)(A) of section 1631(a) or 

the requirements of due process of law’ for the phrase ‘subsection (g) or (h) of section 223’; 
H. R. 743—28 

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

‘under title II’ for the phrase ‘under title XVI’; 

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

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

of such fee for payment’ and by striking, in subsection (b)(1)(A), 

the phrase ‘or certified for payment’; and 

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

‘deemed to be such amounts as determined before any 

applicable reduction under section 1631(g), and reduced by 

the amount of any reduction in benefits under this title or 

title II made pursuant to section 1127(a)’ for the phrase ‘determined before any applicable reduction under section 1127(a))’.’’; 

and 

(4) by redesignating subparagraph (B) as subparagraph 

(D) and inserting after subparagraph (A) the following: 

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

to be entitled to past-due benefits under this title and the person 

representing the claimant is an attorney, the Commissioner of 

Social Security shall pay out of such past-due benefits to such 

attorney an amount equal to the lesser of—

‘‘(i) so much of the maximum fee as does not exceed 25 

percent of such past-due benefits (as determined before any 

applicable reduction under section 1631(g) and reduced by the 

amount of any reduction in benefits under this title or title 

II pursuant to section 1127(a)), or 

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

applicable reductions under sections 1631(g) and 1127(a). 

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

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

subparagraph (B), the Commissioner shall impose on the attorney 

an assessment calculated in accordance with clause (ii). ‘‘(ii)(I) The amount of an assessment under clause (i) shall 

be equal to the product obtained by multiplying the amount of 

the representative’s fee that would be required to be paid by subparagraph (B) before the application of this subparagraph, by 

the percentage specified in subclause (II), except that the maximum 

amount of the assessment may not exceed $75. In the case of 

any calendar year beginning after the amendments made by section 

302 of the Social Security Protection Act of 2003 take effect, the 

dollar amount specified in the preceding sentence (including a previously adjusted amount) shall be adjusted annually under the 

procedures used to adjust benefit amounts under section 

215(i)(2)(A)(ii), except such adjustment shall be based on the higher 

of $75 or the previously adjusted amount that would have been 

in effect for December of the preceding year, but for the rounding 

of such amount pursuant to the following sentence. Any amount 

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

next lowest multiple of $1, but in no case less than $75. 

‘‘(II) The percentage specified in this subclause is such percentage rate as the Commissioner determines is necessary in order 

to achieve full recovery of the costs of determining and approving 

fees to attorneys from the past-due benefits of claimants, but not 

in excess of 6.3 percent. 

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

on an attorney under clause (i) by offset from the amount of the 

fee otherwise required by subparagraph (B) to be paid to the 

attorney from a claimant’s past-due benefits. 
H. R. 743—29 

‘‘(iv) An attorney subject to an assessment under clause (i) 

may not, directly or indirectly, request or otherwise obtain 

reimbursement for such assessment from the claimant whose claim 

gave rise to the assessment. 

‘‘(v) Assessments on attorneys collected under this subparagraph shall be deposited as miscellaneous receipts in the general 

fund of the Treasury. 

‘‘(vi) The assessments authorized under this subparagraph shall 

be collected and available for obligation only to the extent and 

in the amount provided in advance in appropriations Acts. Amounts 

so appropriated are authorized to remain available until expended, 

for administrative expenses in carrying out this title and related 

laws.’’. 

(b) CONFORMING AMENDMENTS.—Section 1631(a) of the Social 

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

(1) in paragraph (2)(F)(i)(II), by inserting ‘‘and payment 

of attorney fees under subsection (d)(2)(B)’’ after ‘‘subsection 

(g)’’; and 

(2) in paragraph (10)(A)—

(A) in the matter preceding clause (i), by inserting 

‘‘and payment of attorney fees under subsection (d)(2)(B)’’

after ‘‘subsection (g)’’; and 

(B) in the matter following clause (ii), by inserting 

‘‘and payment of attorney fees under subsection (d)(2)(B)’’

after ‘‘State’’. 

(c) EFFECTIVE DATE.—

(1) IN GENERAL.—The amendments made by this section 

shall apply with respect to fees for representation of claimants 

which are first required to be paid under section 1631(d)(2) 

of the Social Security Act on or after the date of the submission 

by the Commissioner of Social Security to each House of Congress pursuant to section 303(d) of this Act of written notice 

of completion of full implementation of the requirements for 

operation of the demonstration project under section 303 of 

this Act. 

(2) SUNSET.—Such amendments shall not apply with 

respect to fees for representation of claimants in the case of 

any claim for benefits with respect to which the agreement 

for representation is entered into after 5 years after the date 

described in paragraph (1). 

SEC. 303. NATIONWIDE DEMONSTRATION PROJECT PROVIDING FOR 

EXTENSION OF FEE WITHHOLDING PROCEDURES TO 

NON-ATTORNEY REPRESENTATIVES. 

(a) IN GENERAL.—The Commissioner of Social Security (hereafter in this section referred to as the ‘‘Commissioner’’) shall develop 

and carry out a nationwide demonstration project under this section 

with respect to agents and other persons, other than attorneys, 

who represent claimants under titles II and XVI of the Social 

Security Act before the Commissioner. The demonstration project 

shall be designed to determine the potential results of extending 

to such representatives the fee withholding procedures and assessment procedures that apply under sections 206 and section 

1631(d)(2) of such Act to attorneys seeking direct payment out 

of past due benefits under such titles and shall include an analysis 

of the effect of such extension on claimants and program administration. 
H. R. 743—30 

(b) STANDARDS FOR INCLUSION IN DEMONSTRATION PROJECT.—

Fee-withholding procedures may be extended under the demonstration project carried out pursuant to subsection (a) to any nonattorney representative only if such representative meets at least 

the following prerequisites: 

(1) The representative has been awarded a bachelor’s 

degree from an accredited institution of higher education, or 

has been determined by the Commissioner to have equivalent 

qualifications derived from training and work experience. 

(2) The representative has passed an examination, written 

and administered by the Commissioner, which tests knowledge 

of the relevant provisions of the Social Security Act and the 

most recent developments in agency and court decisions 

affecting titles II and XVI of such Act. 

(3) The representative has secured professional liability 

insurance, or equivalent insurance, which the Commissioner 

has determined to be adequate to protect claimants in the 

event of malpractice by the representative. 

(4) The representative has undergone a criminal background check to ensure the representative’s fitness to practice 

before the Commissioner. 

(5) The representative demonstrates ongoing completion 

of qualified courses of continuing education, including education 

regarding ethics and professional conduct, which are designed 

to enhance professional knowledge in matters related to entitlement to, or eligibility for, benefits based on disability under 

titles II and XVI of such Act. Such continuing education, and 

the instructors providing such education, shall meet such standards as the Commissioner may prescribe. 

(c) ASSESSMENT OF FEES.—

(1) IN GENERAL.—The Commissioner may assess representatives reasonable fees to cover the cost to the Social Security 

Administration of administering the prerequisites described in 

subsection (b). 

(2) DISPOSITION OF FEES.—Fees collected under paragraph 

(1) shall be credited to the Federal Old-Age and Survivors 

Insurance Trust Fund and the Federal Disability Insurance 

Trust Fund, or deposited as miscellaneous receipts in the general fund of the Treasury, based on such allocations as the 

Commissioner of Social Security determines appropriate. 

(3) AUTHORIZATION OF APPROPRIATIONS.—The fees authorized under this subparagraph shall be collected and available 

for obligation only to the extent and in the amount provided 

in advance in appropriations Acts. Amounts so appropriated 

are authorized to remain available until expended for administering the prerequisites described in subsection (b). 

(d) NOTICE TO CONGRESS AND APPLICABILITY OF FEE WITHHOLDING PROCEDURES.—Not later than 1 year after the date of 

enactment of this Act, the Commissioner shall complete such actions 

as are necessary to fully implement the requirements for full operation of the demonstration project and shall submit to each House 

of Congress a written notice of the completion of such actions. 

The applicability under this section to non-attorney representatives 

of the fee withholding procedures and assessment procedures under 

sections 206 and 1631(d)(2) of the Social Security Act shall be 

effective with respect to fees for representation of claimants in 

the case of claims for benefits with respect to which the agreement 
H. R. 743—31 

for representation is entered into by such non-attorney representatives during the period beginning with the date of the submission 

of such notice by the Commissioner to Congress and ending with 

the termination date of the demonstration project. 

(e) REPORTS BY THE COMMISSIONER; TERMINATION.—

(1) INTERIM REPORTS.—On or before the date which is 1 

year after the date of enactment of this Act, and annually 

thereafter, the Commissioner shall transmit to the Committee 

on Ways and Means of the House of Representatives and to 

the Committee on Finance of the Senate an annual interim 

report on the progress of the demonstration project carried 

out under this section, together with any related data and 

materials that the Commissioner may consider appropriate. 

(2) TERMINATION DATE AND FINAL REPORT.—The termination date of the demonstration project under this section 

is the date which is 5 years after the date of the submission 

of the notice by the Commissioner to each House of Congress 

pursuant to subsection (d). The authority under the preceding 

provisions of this section shall not apply in the case of claims 

for benefits with respect to which the agreement for representation is entered into after the termination date. Not later than 

90 days after the termination date, the Commissioner shall 

submit to the Committee on Ways and Means of the House 

of Representatives and to the Committee on Finance of the 

Senate a final report with respect to the demonstration project. 

SEC. 304. GAO STUDY REGARDING THE FEE PAYMENT PROCESS FOR 

CLAIMANT REPRESENTATIVES. 

(a) STUDY.—

(1) IN GENERAL.—The Comptroller General of the United 

States shall study and evaluate the appointment and payment 

of claimant representatives appearing before the Commissioner 

of Social Security in connection with benefit claims under titles 

II and XVI of the Social Security Act (42 U.S.C. 401 et seq., 

1381 et seq.) in each of the following groups: 

(A) Attorney claimant representatives who elect fee 

withholding under section 206 or 1631(d)(2) of such Act. 

(B) Attorney claimant representatives who do not elect 

such fee withholding. 

(C) Non-attorney claimant representatives who are 

eligible for, and elect, such fee withholding. 

(D) Non-attorney claimant representatives who are 

eligible for, but do not elect, such fee withholding. 

(E) Non-attorney claimant representatives who are not 

eligible for such fee withholding. 

(2) MATTERS TO BE STUDIED.—In conducting the study 

under this subsection, the Comptroller General shall, for each 

of group of claimant representatives described in paragraph 

(1)—

(A) conduct a survey of the relevant characteristics 

of such claimant representatives including—

(i) qualifications and experience; 

(ii) the type of employment of such claimant representatives, such as with an advocacy group, State 

or local government, or insurance or other company; 

(iii) geographical distribution between urban and 

rural areas; 
H. R. 743—32 

(iv) the nature of claimants’ cases, such as whether 

the cases are for disability insurance benefits only, 

supplemental security income benefits only, or concurrent benefits; 

(v) the relationship of such claimant representatives to claimants, such as whether the claimant is 

a friend, family member, or client of the claimant 

representative; and 

(vi) the amount of compensation (if any) paid to 

the claimant representatives and the method of payment of such compensation; 

(B) assess the quality and effectiveness of the services 

provided by such claimant representatives, including a 

comparison of claimant satisfaction or complaints and benefit outcomes, adjusted for differences in claimant representatives’ caseload, claimants’ diagnostic group, level 

of decision, and other relevant factors; 

(C) assess the interactions between fee withholding 

under sections 206 and 1631(d)(2) of such Act (including 

under the amendments made by section 302 of this Act 

and under the demonstration project conducted under section 303 of this Act), the windfall offset under section 

1127 of such Act, and interim assistance reimbursements 

under section 1631(g) of such Act; 

(D) assess the potential results of making permanent 

the fee withholding procedures under sections 206 and 

1631(d)(2) of such Act under the amendments made by 

section 302 of this Act and under the demonstration project 

conducted under section 303 of this Act with respect to 

program administration and claimant outcomes, and assess 

whether the rules and procedures employed by the Commissioner of Social Security to evaluate the qualifications and 

performance of claimant representatives should be revised 

prior to making such procedures permanent; and 

(E) make such recommendations for administrative and 

legislative changes as the Comptroller General of the 

United States considers necessary or appropriate. 

(3) CONSULTATION REQUIRED.—The Comptroller General of 

the United States shall consult with beneficiaries under title 

II of such Act, beneficiaries under title XVI of such Act, claimant representatives of beneficiaries under such titles, and other 

interested parties, in conducting the study and evaluation 

required under paragraph (1). 

(b) REPORT.—Not later than 3 years after the date of the 

submission by the Commissioner of Social Security to each House 

of Congress pursuant to section 303(d) of this Act of written notice 

of completion of full implementation of the requirements for operation of the demonstration project under section 303 of this Act, 

the Comptroller General of the United States shall submit to the 

Committee on Ways and Means of the House of Representatives 

and the Committee on Finance of the Senate a report on the 

results of the study and evaluation conducted pursuant to subsection (a). 
H. R. 743—33 

TITLE IV—MISCELLANEOUS AND 

TECHNICAL AMENDMENTS 

Subtitle A—Amendments Relating to the 

Ticket to Work and Work Incentives Improvement Act of 1999 

SEC. 401. APPLICATION OF DEMONSTRATION AUTHORITY SUNSET 

DATE TO NEW PROJECTS. 

Section 234 of the Social Security Act (42 U.S.C. 434) is 

amended—

(1) in the first sentence of subsection (c), by striking ‘‘conducted under subsection (a)’’ and inserting ‘‘initiated under 

subsection (a) on or before December 17, 2005’’; and 

(2) in subsection (d)(2), by striking the first sentence and 

inserting the following: ‘‘The authority to initiate projects under 

the preceding provisions of this section shall terminate on 

December 18, 2005.’’. 

SEC. 402. EXPANSION OF WAIVER AUTHORITY AVAILABLE IN CONNECTION WITH DEMONSTRATION PROJECTS PROVIDING FOR 

REDUCTIONS IN DISABILITY INSURANCE BENEFITS 

BASED ON EARNINGS. 

Section 302(c) of the Ticket to Work and Work Incentives 

Improvement Act of 1999 (42 U.S.C. 434 note) is amended by 

striking ‘‘(42 U.S.C. 401 et seq.),’’ and inserting ‘‘(42 U.S.C. 401 

et seq.) and the requirements of section 1148 of such Act (42 

U.S.C. 1320b–19) as they relate to the program established under 

title II of such Act,’’. 

SEC. 403. FUNDING OF DEMONSTRATION PROJECTS PROVIDING FOR 

REDUCTIONS IN DISABILITY INSURANCE BENEFITS 

BASED ON EARNINGS. 

Section 302(f) of the Ticket to Work and Work Incentives 

Improvement Act of 1999 (42 U.S.C. 434 note) is amended to read 

as follows: 

‘‘(f) EXPENDITURES.—Administrative expenses for demonstration projects under this section shall be paid from funds available 

for the administration of title II or XVIII of the Social Security 

Act, as appropriate. Benefits payable to or on behalf of individuals 

by reason of participation in projects under this section shall be 

made from the Federal Disability Insurance Trust Fund and the 

Federal Old-Age and Survivors Insurance Trust Fund, as determined appropriate by the Commissioner of Social Security, and 

from the Federal Hospital Insurance Trust Fund and the Federal 

Supplementary Medical Insurance Trust Fund, as determined 

appropriate by the Secretary of Health and Human Services, from 

funds available for benefits under such title II or XVIII.’’. 

SEC. 404. AVAILABILITY OF FEDERAL AND STATE WORK INCENTIVE 

SERVICES TO ADDITIONAL INDIVIDUALS. 

(a) FEDERAL WORK INCENTIVES OUTREACH PROGRAM.—

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

Act (42 U.S.C. 1320b–20(c)(2)) is amended to read as follows: 
H. R. 743—34 

‘‘(2) DISABLED BENEFICIARY.—The term ‘disabled beneficiary’ means an individual—

‘‘(A) who is a disabled beneficiary as defined in section 

1148(k)(2) of this Act; 

‘‘(B) who is receiving a cash payment described in 

section 1616(a) of this Act or a supplementary payment 

described in section 212(a)(3) of Public Law 93–66 (without 

regard to whether such payment is paid by the Commissioner pursuant to an agreement under section 1616(a) 

of this Act or under section 212(b) of Public Law 93–

66); 

‘‘(C) who, pursuant to section 1619(b) of this Act, is 

considered to be receiving benefits under title XVI of this 

Act; or 

‘‘(D) who is entitled to benefits under part A of title 

XVIII of this Act by reason of the penultimate sentence 

of section 226(b) of this Act.’’. 

(2) EFFECTIVE DATE.—The amendment made by this subsection shall apply with respect to grants, cooperative agreements, or contracts entered into on or after the date of the 

enactment of this Act. 

(b) STATE GRANTS FOR WORK INCENTIVES ASSISTANCE.—

(1) DEFINITION OF DISABLED BENEFICIARY.—Section 

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

to read as follows: 

‘‘(2) DISABLED BENEFICIARY.—The term ‘disabled beneficiary’ means an individual—

‘‘(A) who is a disabled beneficiary as defined in section 

1148(k)(2) of this Act; 

‘‘(B) who is receiving a cash payment described in 

section 1616(a) of this Act or a supplementary payment 

described in section 212(a)(3) of Public Law 93–66 (without 

regard to whether such payment is paid by the Commissioner pursuant to an agreement under section 1616(a) 

of this Act or under section 212(b) of Public Law 93–

66); 

‘‘(C) who, pursuant to section 1619(b) of this Act, is 

considered to be receiving benefits under title XVI of this 

Act; or 

‘‘(D) who is entitled to benefits under part A of title 

XVIII of this Act by reason of the penultimate sentence 

of section 226(b) of this Act.’’. 

(2) ADVOCACY OR OTHER SERVICES NEEDED TO MAINTAIN

GAINFUL EMPLOYMENT.—Section 1150(b)(2) of such Act (42 

U.S.C. 1320b–21(b)(2)) is amended by striking ‘‘secure or 

regain’’ and inserting ‘‘secure, maintain, or regain’’. 

(3) EFFECTIVE DATE.—The amendments made by this subsection shall apply with respect to payments provided after 

the date of the enactment of this Act. 

SEC. 405. TECHNICAL AMENDMENT CLARIFYING TREATMENT FOR CERTAIN PURPOSES OF INDIVIDUAL WORK PLANS UNDER 

THE TICKET TO WORK AND SELF-SUFFICIENCY PROGRAM. 

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

(42 U.S.C. 1320b–19(g)(1)) is amended by adding at the end, after 

and below subparagraph (E), the following: 
H. R. 743—35 

‘‘An individual work plan established pursuant to this subsection shall be treated, for purposes of section 51(d)(6)(B)(i) 

of the Internal Revenue Code of 1986, as an individualized 

written plan for employment under a State plan for vocational 

rehabilitation services approved under the Rehabilitation Act 

of 1973.’’. 

(b) EFFECTIVE DATE.—The amendment made by subsection (a) 

shall take effect as if included in section 505 of the Ticket to 

Work and Work Incentives Improvement Act of 1999 (Public Law 

106–170; 113 Stat. 1921). 

SEC. 406. GAO STUDY REGARDING THE TICKET TO WORK AND SELFSUFFICIENCY PROGRAM. 

(a) GAO REPORT.—Not later than 12 months after the date 

of enactment of this Act, the Comptroller General of the United 

States shall submit a report to Congress regarding the Ticket 

to Work and Self-Sufficiency Program established under section 

1148 of the Social Security Act (42 U.S.C. 1320b–19) that—

(1) examines the annual and interim reports issued by 

States, the Ticket to Work and Work Incentives Advisory Panel 

established under section 101(f) of the Ticket to Work and 

Work Incentives Improvement Act of 1999 (42 U.S.C. 1320b–

19 note), and the Commissioner of Social Security regarding 

such program; 

(2) assesses the effectiveness of the activities carried out 

under such program; and 

(3) recommends such legislative or administrative changes 

as the Comptroller General determines are appropriate to 

improve the effectiveness of such program. 

SEC. 407. REAUTHORIZATION OF APPROPRIATIONS FOR CERTAIN 

WORK INCENTIVES PROGRAMS. 

(a) BENEFITS PLANNING, ASSISTANCE, AND OUTREACH.—Section 

1149(d) of the Social Security Act (42 U.S.C. 1320b–20(d)) is 

amended by striking ‘‘2004’’ and inserting ‘‘2009’’. 

(b) PROTECTION AND ADVOCACY.—Section 1150(h) of the Social 

Security Act (42 U.S.C. 1320b–21(h)) is amended by striking ‘‘2004’’

and inserting ‘‘2009’’. 

Subtitle B—Miscellaneous Amendments 

SEC. 411. ELIMINATION OF TRANSCRIPT REQUIREMENT IN REMAND 

CASES FULLY FAVORABLE TO THE CLAIMANT. 

(a) IN GENERAL.—Section 205(g) of the Social Security Act (42 U.S.C. 405(g)) is amended in the sixth sentence by striking 

‘‘and a transcript’’ and inserting ‘‘and, in any case in which the 

Commissioner has not made a decision fully favorable to the individual, a transcript’’. (b) EFFECTIVE DATE.—The amendment made by this section 

shall apply with respect to final determinations issued (upon 

remand) on or after the date of the enactment of this Act. 

SEC. 412. NONPAYMENT OF BENEFITS UPON REMOVAL FROM THE 

UNITED STATES. 

(a) IN GENERAL.—Section 202(n) of the Social Security Act (42 U.S.C. 402(n)) is amended—
H. R. 743—36 

(1) in paragraph (1), by striking ‘‘section 241(a) (other 

than under paragraph (1)(C) or (1)(E) thereof) of the Immigration and Nationality Act’’ and inserting ‘‘section 237(a) of the 

Immigration and Nationality Act (other than under paragraph 

(1)(C) of such section) or under section 212(a)(6)(A) of such 

Act’’; 

(2) in paragraph (2), by striking ‘‘section 241(a) of the 

Immigration and Nationality Act (other than under paragraph 

(1)(C) or (1)(E) thereof)’’ and inserting ‘‘section 237(a) of the 

Immigration and Nationality Act (other than under paragraph 

(1)(C) of such section) or under section 212(a)(6)(A) of such 

Act’’; 

(3) in paragraph (3), by striking ‘‘paragraph (19) of section 

241(a) of the Immigration and Nationality Act (relating to 

persecution of others on account of race, religion, national 

origin, or political opinion, under the direction of or in association with the Nazi government of Germany or its allies) shall 

be considered to have been deported under such paragraph 

(19)’’ and inserting ‘‘paragraph (4)(D) of section 241(a) of the 

Immigration and Nationality Act (relating to participating in 

Nazi persecutions or genocide) shall be considered to have 

been deported under such paragraph (4)(D)’’; and 

(4) in paragraph (3) (as amended by paragraph (3) of this 

subsection), by striking ‘‘241(a)’’ and inserting ‘‘237(a)’’. 

(b) TECHNICAL CORRECTIONS.—

(1) TERMINOLOGY REGARDING REMOVAL FROM THE UNITED

STATES.—Section 202(n) of the Social Security Act (42 

U.S.C. 402(n)) (as amended by subsection (a)) is amended further—

(A) by striking ‘‘deportation’’ each place it appears 

and inserting ‘‘removal’’; 

(B) by striking ‘‘deported’’ each place it appears and 

inserting ‘‘removed’’; and 

(C) in the heading, by striking ‘‘Deportation’’ and 

inserting ‘‘Removal’’. 

(2) REFERENCES TO THE SECRETARY OF HOMELAND SECURITY.—Section 202(n) of the Social Security Act (42 U.S.C. 

402(n)) (as amended by subsection (a) and paragraph (1)) is 

amended further by inserting ‘‘or the Secretary of Homeland 

Security’’ after ‘‘the Attorney General’’ each place it appears. 

(c) EFFECTIVE DATES.—

(1) IN GENERAL.—The amendment made by—

(A) subsection (a)(1) shall apply to individuals with 

respect to whom the Commissioner of Social Security 

receives a removal notice after the date of the enactment 

of this Act; 

(B) subsection (a)(2) shall apply with respect to notifications of removals received by the Commissioner of Social 

Security after the date of enactment of this Act; and 

(C) subsection (a)(3) shall be effective as if enacted 

on March 1, 1991. 

(2) SUBSEQUENT CORRECTION OF CROSS-REFERENCE AND

TERMINOLOGY.—The amendments made by subsections (a)(4) and (b)(1) shall be effective as if enacted on April 1, 1997. 

(3) REFERENCES TO THE SECRETARY OF HOMELAND SECURITY.—The amendment made by subsection (b)(2) shall be effective as if enacted on March 1, 2003. 
H. R. 743—37 

SEC. 413. REINSTATEMENT OF CERTAIN REPORTING REQUIREMENTS. 

Section 3003(a)(1) of the Federal Reports Elimination and 

Sunset Act of 1995 (31 U.S.C. 1113 note) shall not apply to any 

report required to be submitted under any of the following provisions of law: 

(1)(A) Section 201(c)(2) of the Social Security Act (42 U.S.C. 401(c)(2)). 

(B) Section 1817(b)(2) of the Social Security Act (42 U.S.C. 1395i(b)(2)). 

(C) Section 1841(b)(2) of the Social Security Act (42 U.S.C. 1395t(b)(2)). 

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

(B) Section 221(i)(3) of the Social Security Act (42 U.S.C. 421(i)(3)). 

SEC. 414. CLARIFICATION OF DEFINITIONS REGARDING CERTAIN SURVIVOR BENEFITS. 

(a) WIDOWS.—Section 216(c) of the Social Security Act (42 

U.S.C. 416(c)) is amended—

(1) by redesignating subclauses (A) through (C) of clause 

(6) as subclauses (i) through (iii), respectively; 

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

(A) through (F), respectively; 

(3) in clause (E) (as redesignated), by inserting ‘‘except 

as provided in paragraph (2),’’ before ‘‘she was married’’; 

(4) by inserting ‘‘(1)’’ after ‘‘(c)’’; and 

(5) by adding at the end the following: 

‘‘(2) The requirements of paragraph (1)(E) in connection with 

the surviving wife of an individual shall be treated as satisfied 

if—

‘‘(A) the individual had been married prior to the individual’s marriage to the surviving wife, 

‘‘(B) the prior wife was institutionalized during the individual’s marriage to the prior wife due to mental incompetence 

or similar incapacity, 

‘‘(C) during the period of the prior wife’s institutionalization, the individual would have divorced the prior wife and 

married the surviving wife, but the individual did not do so 

because such divorce would have been unlawful, by reason 

of the prior wife’s institutionalization, under the laws of the 

State in which the individual was domiciled at the time (as 

determined based on evidence satisfactory to the Commissioner 

of Social Security), 

‘‘(D) the prior wife continued to remain institutionalized 

up to the time of her death, and 

‘‘(E) the individual married the surviving wife within 60 

days after the prior wife’s death.’’. 

(b) WIDOWERS.—Section 216(g) of such Act (42 U.S.C. 416(g)) 

is amended—

(1) by redesignating subclauses (A) through (C) of clause 

(6) as subclauses (i) through (iii), respectively; (2) by redesignating clauses (1) through (6) as clauses (A) through (F), respectively; (3) in clause (E) (as redesignated), by inserting ‘‘except 

as provided in paragraph (2),’’ before ‘‘he was married’’; 

(4) by inserting ‘‘(1)’’ after ‘‘(g)’’; and 
H. R. 743—38 

(5) by adding at the end the following: 

‘‘(2) The requirements of paragraph (1)(E) in connection with 

the surviving husband of an individual shall be treated as satisfied 

if—

‘‘(A) the individual had been married prior to the individual’s marriage to the surviving husband, 

‘‘(B) the prior husband was institutionalized during the 

individual’s marriage to the prior husband due to mental incompetence or similar incapacity, 

‘‘(C) during the period of the prior husband’s institutionalization, the individual would have divorced the prior husband 

and married the surviving husband, but the individual did 

not do so because such divorce would have been unlawful, 

by reason of the prior husband’s institutionalization, under 

the laws of the State in which the individual was domiciled 

at the time (as determined based on evidence satisfactory to 

the Commissioner of Social Security), 

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

‘‘(E) the individual married the surviving husband within 

60 days after the prior husband’s death.’’. 

(c) CONFORMING AMENDMENT.—Section 216(k) of such Act (42 

U.S.C. 416(k)) is amended by striking ‘‘clause (5) of subsection 

(c) or clause (5) of subsection (g)’’ and inserting ‘‘clause (E) of 

subsection (c)(1) or clause (E) of subsection (g)(1)’’. 

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

shall be effective with respect to applications for benefits under 

title II of the Social Security Act filed during months ending after 

the date of the enactment of this Act. 

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. 

Sections 1401(c), 3101(c), and 3111(c) of the Internal Revenue 

Code of 1986 are each amended by striking ‘‘to taxes or contributions 

for similar purposes under’’ and inserting ‘‘exclusively to the laws 

applicable to’’. 

SEC. 416. COVERAGE UNDER DIVIDED RETIREMENT SYSTEM FOR 

PUBLIC EMPLOYEES IN KENTUCKY AND LOUISIANA. 

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

Act (42 U.S.C. 418(d)(6)(C)) is amended by inserting ‘‘Kentucky, 

Louisiana,’’ after ‘‘Illinois,’’. 

(b) EFFECTIVE DATE.—The amendment made by subsection (a) 

takes effect on January 1, 2003. 

SEC. 417. COMPENSATION FOR THE SOCIAL SECURITY ADVISORY 

BOARD. 

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

Security Act (42 U.S.C. 903(f)) is amended to read as follows: 

‘‘Compensation, Expenses, and Per Diem 

‘‘(f) A member of the Board shall, for each day (including traveltime) during which the member is attending meetings or 

conferences of the Board or otherwise engaged in the business 

of the Board, be compensated at the daily rate of basic pay for 
H. R. 743—39 

level IV of the Executive Schedule. While serving on business 

of the Board away from their homes or regular places of business, 

members may be allowed travel expenses, including per diem in 

lieu of subsistence, as authorized by section 5703 of title 5, United 

States Code, for persons in the Government employed intermittently.’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall be effective as of January 1, 2003. 

SEC. 418. SIXTY-MONTH PERIOD OF EMPLOYMENT REQUIREMENT FOR 

APPLICATION OF GOVERNMENT PENSION OFFSET 

EXEMPTION. 

(a) IN GENERAL.—Section 202(k) of the Social Security Act 

(42 U.S.C. 402(k)) is amended by adding at the end the following: 

‘‘(5)(A) The amount of a monthly insurance benefit of any 

individual for each month under subsection (b), (c), (e), (f), or 

(g) (as determined after application of the provisions of subsection 

(q) and the preceding provisions of this subsection) shall be reduced 

(but not below zero) by an amount equal to two-thirds of the 

amount of any monthly periodic benefit payable to such individual 

for such month which is based upon such individual’s earnings 

while in the service of the Federal Government or any State (or 

political subdivision thereof, as defined in section 218(b)(2)) if, 

during any portion of the last 60 months of such service ending 

with the last day such individual was employed by such entity—

‘‘(i) such service did not constitute ‘employment’ as defined 

in section 210, or 

‘‘(ii) such service was being performed while in the service 

of the Federal Government, and constituted ‘employment’ as 

so defined solely by reason of—

‘‘(I) clause (ii) or (iii) of subparagraph (G) of section 

210(a)(5), where the lump-sum payment described in such 

clause (ii) or the cessation of coverage described in such 

clause (iii) (whichever is applicable) was received or 

occurred on or after January 1, 1988, or 

‘‘(II) an election to become subject to the Federal 

Employees’ Retirement System provided in chapter 84 of 

title 5, United States Code, or the Foreign Service Pension 

System provided in subchapter II of chapter 8 of title 

I of the Foreign Service Act of 1980 made pursuant to 

law after December 31, 1987, 

unless subparagraph (B) applies. 

The amount of the reduction in any benefit under this subparagraph, if not a multiple of $0.10, shall be rounded to the next 

higher multiple of $0.10. 

‘‘(B)(i) Subparagraph (A)(i) shall not apply with respect to 

monthly periodic benefits based wholly on service as a member 

of a uniformed service (as defined in section 210(m)). 

‘‘(ii) Subparagraph (A)(ii) shall not apply with respect to 

monthly periodic benefits based in whole or in part on service 

which constituted ‘employment’ as defined in section 210 if such 

service was performed for at least 60 months in the aggregate 

during the period beginning January 1, 1988, and ending with 

the close of the first calendar month as of the end of which such 

individual is eligible for benefits under this subsection and has 

made a valid application for such benefits. 
H. R. 743—40 

‘‘(C) For purposes of this paragraph, any periodic benefit which 

otherwise meets the requirements of subparagraph (A), but which 

is paid on other than a monthly basis, shall be allocated on a 

basis equivalent to a monthly benefit (as determined by the 

Commissioner of Social Security) and such equivalent monthly benefit shall constitute a monthly periodic benefit for purposes of 

subparagraph (A). For purposes of this subparagraph, the term 

‘periodic benefit’ includes a benefit payable in a lump sum if it 

is a commutation of, or a substitute for, periodic payments.’’. 

(b) CONFORMING AMENDMENTS.—

(1) WIFE’S INSURANCE BENEFITS.—Section 202(b) of the 

Social Security Act (42 U.S.C. 402(b)) is amended—

(A) in paragraph (2), by striking ‘‘subsection (q) and 

paragraph (4) of this subsection’’ and inserting ‘‘subsections 

(k)(5) and (q)’’; and 

(B) by striking paragraph (4) and redesignating paragraph (5) as paragraph (4). 

(2) HUSBAND’S INSURANCE BENEFITS.—Section 202(c) of the 

Social Security Act (42 U.S.C. 402(c)) is amended— (A) by striking paragraph (2) and redesignating paragraphs (3) through (5) as paragraphs (2) through (4), 

respectively; and 

(B) in paragraph (2) as so redesignated, by striking 

‘‘subsection (q) and paragraph (2) of this subsection’’ and 

inserting ‘‘subsections (k)(5) and (q)’’. 

(3) WIDOW’S INSURANCE BENEFITS.—Section 202(e) of the 

Social Security Act (42 U.S.C. 402(e)) is amended—

(A) in paragraph (2)(A), by striking ‘‘subsection (q), 

paragraph (7) of this subsection,’’ and inserting ‘‘subsection 

(k)(5), subsection (q),’’; and 

(B) by striking paragraph (7) and redesignating paragraphs (8) and (9) as paragraphs (7) and (8), respectively. 

(4) WIDOWER’S INSURANCE BENEFITS.—

(A) IN GENERAL.—Section 202(f) of the Social Security 

Act (42 U.S.C. 402(f)) is amended—

(i) by striking paragraph (2) and redesignating 

paragraphs (3) through (9) as paragraphs (2) through 

(8), respectively; and 

(ii) in paragraph (2) as so redesignated, by striking 

‘‘subsection (q), paragraph (2) of this subsection,’’ and 

inserting ‘‘subsection (k)(5), subsection (q),’’. 

(B) CONFORMING AMENDMENTS.—

(i) Section 202(f)(1)(B) of the Social Security Act 

(42 U.S.C. 402(f)(1)(B)) is amended by striking ‘‘paragraph (5)’’ and inserting ‘‘paragraph (4)’’. (ii) Section 202(f)(1)(F) of the Social Security Act (42 U.S.C. 402(f)(1)(F)) is amended by striking ‘‘paragraph (6)’’ and ‘‘paragraph (5)’’ (in clauses (i) and (ii)) 

and inserting ‘‘paragraph (5)’’ and ‘‘paragraph (4)’’, respectively. (iii) Section 202(f)(5)(A)(ii) of the Social Security Act (as redesignated by subparagraph (A)(i)) is 

amended by striking ‘‘paragraph (5)’’ and inserting 

‘‘paragraph (4)’’. 

(iv) Section 202(k)(2)(B) of the Social Security Act 

(42 U.S.C. 402(k)(2)(B)) is amended by striking ‘‘or 

(f)(4)’’ each place it appears and inserting ‘‘or (f)(3)’’. 
H. R. 743—41 

(v) Section 202(k)(3)(A) of the Social Security Act 

(42 U.S.C. 402(k)(3)(A)) is amended by striking ‘‘or 

(f)(3)’’ and inserting ‘‘or (f)(2)’’. 

(vi) Section 202(k)(3)(B) of the Social Security Act 

(42 U.S.C. 402(k)(3)(B)) is amended by striking ‘‘or 

(f)(4)’’ and inserting ‘‘or (f)(3)’’. 

(vii) Section 226(e)(1)(A)(i) of the Social Security 

Act (42 U.S.C. 426(e)(1)(A)(i)) is amended by striking 

‘‘and 202(f)(5)’’ and inserting ‘‘and 202(f)(4)’’. 

(5) MOTHER’S AND FATHER’S INSURANCE BENEFITS.—Section 

202(g) of the Social Security Act (42 U.S.C. 402(g)) is amended—

(A) in paragraph (2), by striking ‘‘Except as provided 

in paragraph (4) of this subsection, such’’ and inserting 

‘‘Such’’; and 

(B) by striking paragraph (4). 

(c) EFFECTIVE DATE AND TRANSITIONAL RULE.—

(1) IN GENERAL.—The amendments made by this section 

shall apply with respect to applications for benefits under title 

II of the Social Security Act filed on or after the first day 

of the first month that begins after the date of enactment 

of this Act, except that such amendments shall not apply in 

connection with monthly periodic benefits of any individual 

based on earnings while in service described in section 

202(k)(5)(A) of the Social Security Act (in the matter preceding 

clause (i) thereof) if the last day of such service occurs before 

July 1, 2004. 

(2) TRANSITIONAL RULE.—In the case of any individual 

whose last day of service described in subparagraph (A) of 

section 202(k)(5) of the Social Security Act (as added by subsection (a) of this section) occurs within 5 years after the 

date of enactment of this Act—

(A) the 60-month period described in such subparagraph (A) shall be reduced (but not to less than 1 month) 

by the number of months of such service (in the aggregate 

and without regard to whether such months of service 

were continuous) which—

(i) were performed by the individual under the 

same retirement system on or before the date of enactment of this Act, and 

(ii) constituted ‘‘employment’’ as defined in section 

210 of the Social Security Act; and 

(B) months of service necessary to fulfill the 60-month 

period as reduced by subparagraph (A) of this paragraph 

must be performed after the date of enactment of this 

Act. 

SEC. 419. DISCLOSURE TO WORKERS OF EFFECT OF WINDFALL ELIMINATION PROVISION AND GOVERNMENT PENSION OFFSET 

PROVISION. 

(a) INCLUSION OF NONCOVERED EMPLOYEES AS ELIGIBLE

INDIVIDUALS ENTITLED TO SOCIAL SECURITY ACCOUNT STATEMENTS.—Section 1143(a)(3) of the Social Security Act (42 U.S.C. 

1320b–13(a)(3)) is amended—

(1) by striking ‘‘who’’ after ‘‘an individual’’ and inserting 

‘‘who’’ before ‘‘has’’ in each of subparagraphs (A) and (B); 

(2) by inserting ‘‘(i) who’’ after ‘‘(C)’’; and 
H. R. 743—42 

(3) by inserting before the period the following: ‘‘, or (ii) 

with respect to whom the Commissioner has information that 

the pattern of wages or self-employment income indicate a 

likelihood of noncovered employment’’. 

(b) EXPLANATION IN SOCIAL SECURITY ACCOUNT STATEMENTS

OF POSSIBLE EFFECTS OF PERIODIC BENEFITS UNDER STATE AND

LOCAL RETIREMENT SYSTEMS ON SOCIAL SECURITY BENEFITS.—Section 1143(a)(2) of the Social Security Act (42 U.S.C. 1320b–13(a)(2)) 

is amended—

(1) in subparagraph (C), by striking ‘‘and’’ at the end; 

(2) in subparagraph (D), by striking the period and 

inserting ‘‘; and’’; and 

(3) by adding at the end the following: 

‘‘(E) in the case of an eligible individual described in paragraph (3)(C)(ii), an explanation, in language calculated to be 

understood by the average eligible individual, of the operation 

of the provisions under sections 202(k)(5) and 215(a)(7) and 

an explanation of the maximum potential effects of such provisions on the eligible individual’s monthly retirement, survivor, 

and auxiliary benefits.’’. 

(c) TRUTH IN RETIREMENT DISCLOSURE TO GOVERNMENTAL

EMPLOYEES OF EFFECT OF NONCOVERED EMPLOYMENT ON BENEFITS

UNDER TITLE II.—Section 1143 of the Social Security Act (42 U.S.C. 

1320b–13) is amended further by adding at the end the following: 

‘‘Disclosure to Governmental Employees of Effect of Noncovered 

Employment 

‘‘(d)(1) In the case of any individual commencing employment 

on or after January 1, 2005, in any agency or instrumentality 

of any State (or political subdivision thereof, as defined in section 

218(b)(2)) in a position in which service performed by the individual 

does not constitute ‘employment’ as defined in section 210, the 

head of the agency or instrumentality shall ensure that, prior 

to the date of the commencement of the individual’s employment 

in the position, the individual is provided a written notice setting 

forth an explanation, in language calculated to be understood by 

the average individual, of the maximum effect on computations 

of primary insurance amounts (under section 215(a)(7)) and the 

effect on benefit amounts (under section 202(k)(5)) of monthly periodic payments or benefits payable based on earnings derived in 

such service. Such notice shall be in a form which shall be prescribed by the Commissioner of Social Security. 

‘‘(2) The written notice provided to an individual pursuant 

to paragraph (1) shall include a form which, upon completion and 

signature by the individual, would constitute certification by the 

individual of receipt of the notice. The agency or instrumentality 

providing the notice to the individual shall require that the form 

be completed and signed by the individual and submitted to the 

agency or instrumentality and to the pension, annuity, retirement, 

or similar fund or system established by the governmental entity 

involved responsible for paying the monthly periodic payments or 

benefits, before commencement of service with the agency or 

instrumentality.’’. 

(d) EFFECTIVE DATES.—The amendments made by subsections 

(a) and (b) of this section shall apply with respect to social security 

account statements issued on or after January 1, 2007. 
H. R. 743—43 

SEC. 420. POST-1956 MILITARY WAGE CREDITS. 

(a) PAYMENT TO THE SOCIAL SECURITY TRUST FUNDS IN SATISFACTION OF OUTSTANDING OBLIGATIONS.—Section 201 of the Social 

Security Act (42 U.S.C. 401) is amended by adding at the end 

the following: 

‘‘(n) Not later than July 1, 2004, the Secretary of the Treasury 

shall transfer, from amounts in the general fund of the Treasury 

that are not otherwise appropriated—

‘‘(1) $624,971,854 to the Federal Old-Age and Survivors 

Insurance Trust Fund; 

‘‘(2) $105,379,671 to the Federal Disability Insurance Trust 

Fund; and 

‘‘(3) $173,306,134 to the Federal Hospital Insurance Trust 

Fund. 

Amounts transferred in accordance with this subsection shall be 

in satisfaction of certain outstanding obligations for deemed wage 

credits for 2000 and 2001.’’. 

(b) CONFORMING AMENDMENTS.—

(1) REPEAL OF AUTHORITY FOR ANNUAL APPROPRIATIONS AND

RELATED ADJUSTMENTS TO COMPENSATE THE SOCIAL SECURITY

TRUST FUND FOR MILITARY WAGE CREDITS.—Section 229 of the 

Social Security Act (42 U.S.C. 429) is amended—

(A) by striking ‘‘(a)’’; and 

(B) by striking subsection (b). 

(2) AMENDMENT TO REFLECT THE TERMINATION OF WAGE

CREDITS EFFECTIVE AFTER CALENDAR YEAR 2001 BY SECTION 8134

OF PUBLIC LAW 107–117.—Section 229(a)(2) of the Social Security 

Act (42 U.S.C. 429(a)(2)), as amended by paragraph (1), is 

amended by inserting ‘‘and before 2002’’ after ‘‘1977’’. 

SEC. 420A. ELIMINATION OF DISINCENTIVE TO RETURN-TO-WORK FOR 

CHILDHOOD DISABILITY BENEFICIARIES. 

(a) IN GENERAL.—Section 202(d)(6)(B) of the Social Security 

Act (42 U.S.C. 402(d)(6)(B)) is amended—

(1) by inserting ‘‘(i)’’ after ‘‘began’’; and 

(2) by adding after ‘‘such disability,’’ the following: ‘‘or 

(ii) after the close of the 84th month following the month 

in which his most recent entitlement to child’s insurance benefits terminated because he ceased to be under such disability 

due to performance of substantial gainful activity,’’. 

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

(a) shall be effective with respect to benefits payable for months 

beginning with the 7th month that begins after the date of enactment of this Act. 

Subtitle C—Technical Amendments 

SEC. 421. TECHNICAL CORRECTION RELATING TO RESPONSIBLE 

AGENCY HEAD. 

Section 1143 of the Social Security Act (42 U.S.C. 1320b–13) 

is amended— (1) by striking ‘‘Secretary’’ the first place it appears and 

inserting ‘‘Commissioner of Social Security’’; and 

(2) by striking ‘‘Secretary’’ each subsequent place it appears 

and inserting ‘‘Commissioner’’. 
H. R. 743—44 

SEC. 422. TECHNICAL CORRECTION RELATING TO RETIREMENT BENEFITS OF MINISTERS. 

(a) IN GENERAL.—Section 211(a)(7) of the Social Security Act (42 U.S.C. 411(a)(7)) is amended by inserting ‘‘, but shall not include 

in any such net earnings from self-employment the rental value 

of any parsonage or any parsonage allowance (whether or not 

excluded under section 107 of the Internal Revenue Code of 1986) 

provided after the individual retires, or any other retirement benefit 

received by such individual from a church plan (as defined in 

section 414(e) of such Code) after the individual retires’’ before 

the semicolon. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall apply to years beginning before, on, or after December 31, 

1994. 

SEC. 423. TECHNICAL CORRECTIONS RELATING TO DOMESTIC 

EMPLOYMENT. 

(a) AMENDMENT TO INTERNAL REVENUE CODE.—Section 

3121(a)(7)(B) of the Internal Revenue Code of 1986 is amended 

by striking ‘‘described in subsection (g)(5)’’ and inserting ‘‘on a 

farm operated for profit’’. 

(b) AMENDMENT TO SOCIAL SECURITY ACT.—Section 209(a)(6)(B) 

of the Social Security Act (42 U.S.C. 409(a)(6)(B)) is amended by 

striking ‘‘described in section 210(f)(5)’’ and inserting ‘‘on a farm 

operated for profit’’. 

(c) CONFORMING AMENDMENT.—Section 3121(g)(5) of such Code 

and section 210(f)(5) of such Act (42 U.S.C. 410(f)(5)) are amended 

by striking ‘‘or is domestic service in a private home of the 

employer’’. 

SEC. 424. TECHNICAL CORRECTIONS OF OUTDATED REFERENCES. 

(a) CORRECTION OF CITATION RESPECTING THE TAX DEDUCTION

RELATING TO HEALTH INSURANCE COSTS OF SELF-EMPLOYED

INDIVIDUALS.—Section 211(a)(15) of the Social Security Act (42 U.S.C. 411(a)(15)) is amended by striking ‘‘section 162(m)’’ and 

inserting ‘‘section 162(l)’’. (b) ELIMINATION OF REFERENCE TO OBSOLETE 20-DAY AGRICUL- TURAL WORK TEST.—Section 3102(a) of the Internal Revenue Code 

of 1986 is amended by striking ‘‘and the employee has not performed 

agricultural labor for the employer on 20 days or more in the 

calendar year for cash remuneration computed on a time basis’’. 

SEC. 425. TECHNICAL CORRECTION RESPECTING SELF-EMPLOYMENT 

INCOME IN COMMUNITY PROPERTY STATES. 

(a) SOCIAL SECURITY ACT AMENDMENT.—Section 211(a)(5)(A) 

of the Social Security Act (42 U.S.C. 411(a)(5)(A)) is amended by 

striking ‘‘all of the gross income’’ and all that follows and inserting ‘‘the gross income and deductions attributable to such trade or 

business shall be treated as the gross income and deductions of 

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

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

deductions of each spouse on the basis of their respective distributive share of the gross income and deductions;’’. 

(b) INTERNAL REVENUE CODE OF 1986 AMENDMENT.—Section 

1402(a)(5)(A) of the Internal Revenue Code of 1986 is amended 

by striking ‘‘all of the gross income’’ and all that follows and 

inserting ‘‘the gross income and deductions attributable to such 
H. R. 743—45 

trade or business shall be treated as the gross income and deductions of the spouse carrying on such trade or business or, if such 

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

and deductions of each spouse on the basis of their respective 

distributive share of the gross income and deductions; and’’. 

SEC. 426. TECHNICAL AMENDMENTS TO THE RAILROAD RETIREMENT 

AND SURVIVORS’ IMPROVEMENT ACT OF 2001. 

(a) QUORUM RULES.—Section 15(j)(7) of the Railroad Retirement Act of 1974 (45 U.S.C. 231n(j)(7)) is amended by striking ‘‘entire 

Board of Trustees’’ and inserting ‘‘Trustees then holding office’’. (b) POWERS OF THE BOARD OF TRUSTEES.—Section 15(j)(4) of 

the Railroad Retirement Act of 1974 (45 U.S.C. 231n(j)(4)) is 

amended to read as follows: 

‘‘(4) POWERS OF THE BOARD OF TRUSTEES.—The Board of 

Trustees shall—

‘‘(A) retain independent advisers to assist it in the 

formulation and adoption of its investment guidelines; 

‘‘(B) invest assets of the Trust in a manner consistent 

with such investment guidelines, either directly or through 

the retention of independent investment managers; 

‘‘(C) adopt bylaws and other rules to govern its operations; 

‘‘(D) employ professional staff, and contract with outside advisers, including the Railroad Retirement Board, 

to provide legal, accounting, investment advisory or 

management services (compensation for which may be on 

a fixed contract fee basis or on such other terms as are 

customary for such services), or other services necessary 

for the proper administration of the Trust; 

‘‘(E) sue and be sued and participate in legal proceedings, have and use a seal, conduct business, carry 

on operations, and exercise its powers within or without 

the District of Columbia, form, own, or participate in entities of any kind, enter into contracts and agreements necessary to carry out its business purposes, lend money for 

such purposes, and deal with property as security for the 

payment of funds so loaned, and possess and exercise any 

other powers appropriate to carry out the purposes of the 

Trust; 

‘‘(F) pay administrative expenses of the Trust from 

the assets of the Trust; and 

‘‘(G) transfer money to the disbursing agent or as otherwise provided in section 7(b)(4), to pay benefits payable 

under this Act from the assets of the Trust.’’. 

(c) STATE AND LOCAL TAXES.—Section 15(j)(6) of the Railroad 

Retirement Act of 1974 (45 U.S.C. 231n(j)(6)) is amended to read 

as follows: 

‘‘(6) STATE AND LOCAL TAXES.—The Trust shall be exempt 

from any income, sales, use, property, or other similar tax 

or fee imposed or levied by a State, political subdivision, or 

local taxing authority. The district courts of the United States 

shall have original jurisdiction over a civil action brought by 

the Trust to enforce this subsection and may grant equitable 

or declaratory relief requested by the Trust.’’. (d) FUNDING.—Section 15(j)(8) of the Railroad Retirement Act of 1974 (45 U.S.C. 231n(j)(8)) is repealed. 
H. R. 743—46 

(e) TRANSFERS.—Section 15A(d)(2) of the Railroad Retirement 

Act of 1974 (45 U.S.C. 231n–1(d)(2)) is amended—

(1) by inserting ‘‘or the Railroad Retirement Account’’ after 

‘‘National Railroad Retirement Investment Trust’’ the second 

place it appears; 

(2) by inserting ‘‘or the Railroad Retirement Board’’ after 

‘‘National Railroad Retirement Investment Trust’’ the third 

place it appears; 

(3) by inserting ‘‘(either directly or through a commingled 

account consisting only of such obligations)’’ after ‘‘United 

States’’ the first place it appears; and 

(4) in the third sentence, by inserting before the period 

at the end the following: ‘‘or to purchase such additional obligations’’. 

(f) CLERICAL AMENDMENTS.—Section 15(j)(5) of the Railroad 

Retirement Act of 1974 (45 U.S.C. 231n(j)(5)) is amended—

(1) in subparagraph (B), by striking ‘‘trustee’s’’ each place 

it appears and inserting ‘‘Trustee’s’’; 

(2) in subparagraph (C), by striking ‘‘trustee’’ and ‘‘trustees’’

each place it appears and inserting ‘‘Trustee’’ and ‘‘Trustees’’, 

respectively; and 

(3) in the matter preceding clause (i) of subparagraph (D), 

by striking ‘‘trustee’’ and inserting ‘‘Trustee’’. 

Subtitle D—Amendments Related to Title 

XVI 

SEC. 430. EXCLUSION FROM INCOME FOR CERTAIN INFREQUENT OR 

IRREGULAR INCOME AND CERTAIN INTEREST OR DIVIDEND INCOME. 

(a) INFREQUENT OR IRREGULAR INCOME.—Section 1612(b)(3) of 

the Social Security Act (42 U.S.C. 1382a(b)(3)) is amended to read 

as follows—

‘‘(3) in any calendar quarter, the first—

‘‘(A) $60 of unearned income, and 

‘‘(B) $30 of earned income, 

of such individual (and such spouse, if any) which, as determined in accordance with criteria prescribed by the Commissioner of Social Security, is received too infrequently or irregularly to be included;’’. 

(b) INTEREST OR DIVIDEND INCOME.—Section 1612(b) of the 

Social Security Act (42 U.S.C. 1382a(b)) is amended—

(1) in paragraph (21), by striking ‘‘and’’ at the end; 

(2) in paragraph (22), by striking the period and inserting 

‘‘; and’’; and 

(3) by adding at the end the following: 

‘‘(23) interest or dividend income from resources—

‘‘(A) not excluded under section 1613(a), or 

‘‘(B) excluded pursuant to Federal law other than section 1613(a).’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall be effective with respect to benefits payable for months in 

calendar quarters that begin more than 90 days after the date 

of the enactment of this Act. 
H. R. 743—47 

SEC. 431. UNIFORM 9-MONTH RESOURCE EXCLUSION PERIODS. 

(a) UNDERPAYMENTS OF BENEFITS.—Section 1613(a)(7) of the 

Social Security Act (42 U.S.C. 1382b(a)(7)) is amended— (1) by striking ‘‘6’’ and inserting ‘‘9’’; and 

(2) by striking ‘‘(or to the first 9 months following such 

month with respect to any amount so received during the 

period beginning October 1, 1987, and ending September 30, 

1989)’’. (b) ADVANCEABLE TAX CREDITS.—Section 1613(a)(11) of the 

Social Security Act (42 U.S.C. 1382b(a)(11)) is amended to read 

as follows: ‘‘(11) for the 9-month period beginning after the month 

in which received— ‘‘(A) notwithstanding section 203 of the Economic 

Growth and Tax Relief Reconciliation Act of 2001, any 

refund of Federal income taxes made to such individual 

(or such spouse) under section 24 of the Internal Revenue 

Code of 1986 (relating to child tax credit) by reason of 

subsection (d) thereof; and ‘‘(B) any refund of Federal income taxes made to such individual (or such spouse) by reason of section 32 of the 

Internal Revenue Code of 1986 (relating to earned income 

tax credit), and any payment made to such individual (or 

such spouse) by an employer under section 3507 of such 

Code (relating to advance payment of earned income 

credit);’’. (c) EFFECTIVE DATE.—The amendments made by this section 

shall take effect on the date of enactment of this Act, and shall 

apply to amounts described in paragraph (7) of section 1613(a) 

of the Social Security Act and refunds of Federal income taxes 

described in paragraph (11) of such section, that are received by 

an eligible individual or eligible spouse on or after such date. 

SEC. 432. ELIMINATION OF CERTAIN RESTRICTIONS ON THE APPLICATION OF THE STUDENT EARNED INCOME EXCLUSION. 

(a) IN GENERAL.—Section 1612(b)(1) of the Social Security Act 

(42 U.S.C. 1382a(b)(1)) is amended by striking ‘‘a child who’’ and 

inserting ‘‘under the age of 22 and’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall be effective with respect to benefits payable for months that 

begin on or after 1 year after the date of enactment of this Act. 

SEC. 433. EXCEPTION TO RETROSPECTIVE MONTHLY ACCOUNTING 

FOR NONRECURRING INCOME. 

(a) IN GENERAL.—Section 1611(c) of the Social Security Act 

(42 U.S.C. 1382(c)) is amended by adding at the end the following: 

‘‘(9)(A) Notwithstanding paragraphs (1) and (2), any nonrecurring income which is paid to an individual in the first month 

of any period of eligibility shall be taken into account in determining 

the amount of the benefit under this title of such individual (and 

his eligible spouse, if any) only for that month, and shall not 

be taken into account in determining the amount of the benefit 

for any other month. 

‘‘(B) For purposes of subparagraph (A), payments to an individual in varying amounts from the same or similar source for 

the same or similar purpose shall not be considered to be nonrecurring income.’’. 
H. R. 743—48 

(b) DELETION OF OBSOLETE MATERIAL.—Section 1611(c)(2)(B) 

of the Social Security Act (42 U.S.C. 1382(c)(2)(B)) is amended 

to read as follows: 

‘‘(B) in the case of the first month following a period of 

ineligibility in which eligibility is restored after the first day 

of such month, bear the same ratio to the amount of the 

benefit which would have been payable to such individual if 

eligibility had been restored on the first day of such month 

as the number of days in such month including and following 

the date of restoration of eligibility bears to the total number 

of days in such month.’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall be effective with respect to benefits payable for months that 

begin on or after 1 year after the date of enactment of this Act. 

SEC. 434. 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. 

(a) IN GENERAL.—Section 1614(a)(1)(B)(ii) of the Social Security 

Act (42 U.S.C. 1382c(a)(1)(B)(ii)) is amended—

(1) by inserting ‘‘and’’ after ‘‘citizen of the United States,’’; 

and 

(2) by striking ‘‘, and who,’’ and all that follows and 

inserting a period. 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall be effective with respect to benefits payable for months beginning after the date of enactment of this Act, but only on the 

basis of an application filed after such date. 

SEC. 435. TREATMENT OF EDUCATION-RELATED INCOME AND 

RESOURCES. 

(a) EXCLUSION FROM INCOME OF GIFTS PROVIDED FOR TUITION

AND OTHER EDUCATION-RELATED FEES.—Section 1612(b)(7) of the 

Social Security Act (42 U.S.C. 1382a(b)(7)) is amended by striking 

‘‘or fellowship received for use in paying’’ and inserting ‘‘fellowship, 

or gift (or portion of a gift) used to pay’’. 

(b) EXCLUSION FROM RESOURCES FOR 9 MONTHS OF GRANTS, 

SCHOLARSHIPS, FELLOWSHIPS, OR GIFTS PROVIDED FOR TUITION AND

OTHER EDUCATION-RELATED FEES.—Section 1613(a) of the Social 

Security Act (42 U.S.C. 1382b(a)) (as amended by section 101(c)(2)) 

is amended—

(1) in paragraph (13), by striking ‘‘and’’ at the end; 

(2) in paragraph (14), by striking the period and inserting 

‘‘; and’’; and 

(3) by inserting after paragraph (14) the following: 

‘‘(15) for the 9-month period beginning after the month 

in which received, any grant, scholarship, fellowship, or gift 

(or portion of a gift) used to pay the cost of tuition and fees 

at any educational (including technical or vocational education) 

institution.’’. 

(c) EFFECTIVE DATE.—The amendments made by this section 

shall apply to benefits payable for months that begin more than 

90 days after the date of enactment of this Act. 
H. R. 743—49 

SEC. 436. MONTHLY TREATMENT OF UNIFORMED SERVICE COMPENSATION. 

(a) TREATMENT OF PAY AS RECEIVED WHEN EARNED.—Section 

1611(c) of the Social Security Act (42 U.S.C. 1382(c)), as amended 

by section 435(a), is amended by adding at the end the following: ‘‘(10) For purposes of this subsection, remuneration for service 

performed as a member of a uniformed service may be treated 

as received in the month in which it was earned, if the Commissioner of Social Security determines that such treatment would 

promote the economical and efficient administration of the program 

authorized by this title.’’. (b) EFFECTIVE DATE.—The amendments made by this section 

shall apply to benefits payable for months that begin more than 

90 days after the date of enactment of this Act. 

Speaker of the House of Representatives. 

Vice President of the United States and

President of the Senate.