In the Senate of the United States,

December 9, 2003.

Resolved, That the bill from the House of Representatives (H.R. 743) entitled ‘‘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.’’, do

pass with the following

AMENDMENT:

Strike out all after the enacting clause and insert:

1 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

2 (a) SHORT TITLE.—This Act may be cited as the ‘‘So3 cial Security Protection Act of 2003’’.
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1 (b) TABLE OF CONTENTS.—The table of contents is as

2 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.

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.
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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. 60-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.
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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.

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

Sec. 436. Monthly treatment of uniformed service compensation.

1 TITLE I—PROTECTION OF

2 BENEFICIARIES

3 Subtitle A—Representative Payees

4 SEC. 101. AUTHORITY TO REISSUE BENEFITS MISUSED BY

5 ORGANIZATIONAL REPRESENTATIVE PAYEES.

6 (a) TITLE II AMENDMENTS.—

7 (1) REISSUANCE OF BENEFITS.—Section

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

9 U.S.C. 405(j)(5)) is amended by inserting after the

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

11 representative payee that—

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

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

14 paragraph (4)(B)); or

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

17 individuals who are beneficiaries under this title, title

18 VIII, title XVI, or any combination of such titles;
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1 misuses all or part of an individual’s benefit paid to such

2 representative payee, the Commissioner of Social Security

3 shall certify for payment to the beneficiary or the bene4 ficiary’s alternative representative payee an amount equal

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

6 of this paragraph are subject to the limitations of para7 graph (7)(B).’’.

8 (2) MISUSE OF BENEFITS DEFINED.—Section

9 205(j) of such Act (42 U.S.C. 405(j)) is amended by

10 adding at the end the following:

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

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

13 representative payee receives payment under this title for

14 the use and benefit of another person and converts such pay15 ment, or any part thereof, to a use other than for the use

16 and benefit of such other person. The Commissioner of So17 cial Security may prescribe by regulation the meaning of

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

19 (b) TITLE VIII AMENDMENTS.—

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

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

22 amended further by inserting after the first sentence

23 the following: ‘‘In any case in which a representative

24 payee that—

25 ‘‘(A) is not an individual; or
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1 ‘‘(B) is an individual who, for any month

2 during a period when misuse occurs, serves 15 or

3 more individuals who are beneficiaries under

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

5 of such titles;

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

7 such representative payee, the Commissioner of Social

8 Security shall pay to the beneficiary or the bene9 ficiary’s alternative representative payee an amount

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

11 provisions of this paragraph are subject to the limita12 tions of subsection (l)(2).’’.

13 (2) MISUSE OF BENEFITS DEFINED.—Section

14 807 of such Act (42 U.S.C. 1007) is amended by add15 ing at the end the following:

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

17 misuse of benefits by a representative payee occurs in any

18 case in which the representative payee receives payment

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

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

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

22 person. The Commissioner of Social Security may prescribe

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

24 purposes of this subsection.’’.
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1 (3) TECHNICAL AMENDMENT.—Section 807(a) of

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

3 sentence, by striking ‘‘for his or her benefit’’ and in4 serting ‘‘for his or her use and benefit’’.

5 (c) TITLE XVI AMENDMENTS.—

6 (1) REISSUANCE OF BENEFITS.—Section

7 1631(a)(2)(E) of such Act (42 U.S.C. 1383(a)(2)(E))

8 is amended by inserting after the first sentence the

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

10 payee that—

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

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

13 subparagraph (D)(ii)); or

14 ‘‘(ii) is an individual who, for any month dur15 ing a period when misuse occurs, serves 15 or more

16 individuals who are beneficiaries under this title, title

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

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

19 representative payee, the Commissioner of Social Security

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

21 representative payee an amount equal to the amount of such

22 benefit so misused. The provisions of this subparagraph are

23 subject to the limitations of subparagraph (H)(ii).’’.
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1 (2) EXCLUSION OF REISSUED BENEFITS FROM

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

3 U.S.C. 1382b(a)) is amended—

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

5 at the end;

6 (B) in paragraph (13), by striking the pe7 riod and inserting ‘‘; and’’; and

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

9 following:

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

11 month in which received, any amount received by

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

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

14 (or spouse’s) income for purposes of this title as res15 titution for benefits under this title, title II, or title

16 VIII that a representative payee of such individual

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

18 807, or 1631(a)(2) has misused.’’.

19 (3) MISUSE OF BENEFITS DEFINED.—Section

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

21 is amended by adding at the end the following:

22 ‘‘(iv) For purposes of this paragraph, misuse of bene23 fits by a representative payee occurs in any case in which

24 the representative payee receives payment under this title

25 for the use and benefit of another person and converts such
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1 payment, or any part thereof, to a use other than for the

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

3 Social Security may prescribe by regulation the meaning

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

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

6 section shall apply to any case of benefit misuse by a rep7 resentative payee with respect to which the Commissioner

8 of Social Security makes the determination of misuse on

9 or after January 1, 1995.

10 SEC. 102. OVERSIGHT OF REPRESENTATIVE PAYEES.

11 (a) CERTIFICATION OF BONDING AND LICENSING RE12 QUIREMENTS FOR NONGOVERNMENTAL ORGANIZATIONAL

13 REPRESENTATIVE PAYEES.—

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

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

16 amended—

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

18 community-based nonprofit social service agency

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

20 and inserting ‘‘a certified community-based non21 profit social service agency (as defined in para22 graph (9))’’;

23 (B) in paragraph (3)(F), by striking ‘‘com24 munity-based nonprofit social service agencies’’

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

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

4 community-based nonprofit social service agency

5 which is bonded or licensed in each State in

6 which it serves as a representative payee’’ and

7 inserting ‘‘any certified community-based non8 profit social service agency (as defined in para9 graph (9))’’; and

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

11 added by section 101(a)(2) of this Act) the fol12 lowing:

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

14 community-based nonprofit social service agency’ means a

15 community-based nonprofit social service agency which is

16 in compliance with requirements, under regulations which

17 shall be prescribed by the Commissioner, for annual certifi18 cation to the Commissioner that it is bonded in accordance

19 with requirements specified by the Commissioner and that

20 it is licensed in each State in which it serves as a represent21 ative payee (if licensing is available in the State) in accord22 ance with requirements specified by the Commissioner. Any

23 such annual certification shall include a copy of any inde24 pendent audit on the agency which may have been per25 formed since the previous certification.’’.
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1 (2) TITLE XVI AMENDMENTS.—Section

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

3 amended—

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

5 ‘‘a community-based nonprofit social service

6 agency licensed or bonded by the State’’ in sub7 clause (I) and inserting ‘‘a certified community8 based nonprofit social service agency (as defined

9 in subparagraph (I))’’;

10 (B) in subparagraph (D)(ii)—

11 (i) by striking ‘‘or any community12 based’’ and all that follows through ‘‘in ac13 cordance’’ in subclause (II) and inserting

14 ‘‘or any certified community-based non15 profit social service agency (as defined in

16 subparagraph (I)), if the agency, in accord17 ance’’;

18 (ii) by redesignating items (aa) and

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

20 (and adjusting the margins accordingly);

21 and

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

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

24 (C) by adding at the end the following:
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1 ‘‘(I) For purposes of this paragraph, the term ‘certified

2 community-based nonprofit social service agency’ means a

3 community-based nonprofit social service agency which is

4 in compliance with requirements, under regulations which

5 shall be prescribed by the Commissioner, for annual certifi6 cation to the Commissioner that it is bonded in accordance

7 with requirements specified by the Commissioner and that

8 it is licensed in each State in which it serves as a represent9 ative payee (if licensing is available in the State) in accord10 ance with requirements specified by the Commissioner. Any

11 such annual certification shall include a copy of any inde12 pendent audit on the agency which may have been per13 formed since the previous certification.’’.

14 (3) EFFECTIVE DATE.—The amendments made

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

16 the thirteenth month beginning after the date of the

17 enactment of this Act.

18 (b) PERIODIC ONSITE REVIEW.—

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

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

21 follows:

22 ‘‘(6)(A) In addition to such other reviews of represent23 ative payees as the Commissioner of Social Security may

24 otherwise conduct, the Commissioner shall provide for the

25 periodic onsite review of any person or agency located in
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1 the United States that receives the benefits payable under

2 this title (alone or in combination with benefits payable

3 under title VIII or title XVI) to another individual pursu4 ant to the appointment of such person or agency as a rep5 resentative payee under this subsection, section 807, or sec6 tion 1631(a)(2) in any case in which—

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

8 serves in that capacity with respect to 15 or more

9 such individuals;

10 ‘‘(ii) the representative payee is a certified com11 munity-based nonprofit social service agency (as de12 fined in paragraph (9) of this subsection or section

13 1631(a)(2)(I)); or

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

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

16 serves in that capacity with respect to 50 or more

17 such individuals.

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

19 the Commissioner shall submit to the Committee on Ways

20 and Means of the House of Representatives and the Com21 mittee on Finance of the Senate a report on the results of

22 periodic onsite reviews conducted during the fiscal year

23 pursuant to subparagraph (A) and of any other reviews of

24 representative payees conducted during such fiscal year in

25 connection with benefits under this title. Each such report
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1 shall describe in detail all problems identified in such re2 views and any corrective action taken or planned to be

3 taken to correct such problems, and shall include—

4 ‘‘(i) the number of such reviews;

5 ‘‘(ii) the results of such reviews;

6 ‘‘(iii) the number of cases in which the represent7 ative payee was changed and why;

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

9 of expedited, targeted oversight of the representative

10 payee by the Commissioner conducted upon receipt of

11 an allegation of misuse of funds, failure to pay a ven12 dor, or a similar irregularity;

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

14 there was a misuse of funds;

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

16 dealt with by the Commissioner;

17 ‘‘(vii) the final disposition of such cases of mis18 use of funds, including any criminal penalties im19 posed; and

20 ‘‘(viii) such other information as the Commis21 sioner deems appropriate.’’.

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

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

24 is amended further by adding at the end the fol25 lowing:
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1 ‘‘(k) PERIODIC ONSITE REVIEW.—

2 ‘‘(1) IN GENERAL.—In addition to such other re3 views of representative payees as the Commissioner of

4 Social Security may otherwise conduct, the Commis5 sioner may provide for the periodic onsite review of

6 any person or agency that receives the benefits pay7 able under this title (alone or in combination with

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

9 individual pursuant to the appointment of such per10 son or agency as a representative payee under this

11 section, section 205(j), or section 1631(a)(2) in any

12 case in which—

13 ‘‘(A) the representative payee is a person

14 who serves in that capacity with respect to 15 or

15 more such individuals; or

16 ‘‘(B) the representative payee is an agency

17 that serves in that capacity with respect to 50 or

18 more such individuals.

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

20 each fiscal year, the Commissioner shall submit to the

21 Committee on Ways and Means of the House of Rep22 resentatives and the Committee on Finance of the

23 Senate a report on the results of periodic onsite re24 views conducted during the fiscal year pursuant to

25 paragraph (1) and of any other reviews of representa-
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1 tive payees conducted during such fiscal year in con2 nection with benefits under this title. Each such re3 port shall describe in detail all problems identified in

4 such reviews and any corrective action taken or

5 planned to be taken to correct such problems, and

6 shall include—

7 ‘‘(A) the number of such reviews;

8 ‘‘(B) the results of such reviews;

9 ‘‘(C) the number of cases in which the rep10 resentative payee was changed and why;

11 ‘‘(D) the number of cases involving the exer12 cise of expedited, targeted oversight of the rep13 resentative payee by the Commissioner conducted

14 upon receipt of an allegation of misuse of funds,

15 failure to pay a vendor, or a similar irregu16 larity;

17 ‘‘(E) the number of cases discovered in

18 which there was a misuse of funds;

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

20 were dealt with by the Commissioner;

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

22 misuse of funds, including any criminal pen23 alties imposed; and

24 ‘‘(H) such other information as the Com25 missioner deems appropriate.’’.
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1 (3) TITLE XVI AMENDMENT.—Section

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

3 is amended to read as follows:

4 ‘‘(G)(i) In addition to such other reviews of representa5 tive payees as the Commissioner of Social Security may

6 otherwise conduct, the Commissioner shall provide for the

7 periodic onsite review of any person or agency that receives

8 the benefits payable under this title (alone or in combina9 tion with benefits payable under title II or title VIII) to

10 another individual pursuant to the appointment of the per11 son or agency as a representative payee under this para12 graph, section 205(j), or section 807 in any case in which—

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

14 serves in that capacity with respect to 15 or more

15 such individuals;

16 ‘‘(II) the representative payee is a certified com17 munity-based nonprofit social service agency (as de18 fined in subparagraph (I) of this paragraph or sec19 tion 205(j)(9)); or

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

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

22 that serves in that capacity with respect to 50 or

23 more such individuals.

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

25 the Commissioner shall submit to the Committee on Ways
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1 and Means of the House of Representatives and the Com2 mittee on Finance of the Senate a report on the results of

3 periodic onsite reviews conducted during the fiscal year

4 pursuant to clause (i) and of any other reviews of represent5 ative payees conducted during such fiscal year in connec6 tion with benefits under this title. Each such report shall

7 describe in detail all problems identified in the reviews and

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

9 the problems, and shall include—

10 ‘‘(I) the number of the reviews;

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

12 ‘‘(III) the number of cases in which the rep13 resentative payee was changed and why;

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

15 of expedited, targeted oversight of the representative

16 payee by the Commissioner conducted upon receipt of

17 an allegation of misuse of funds, failure to pay a ven18 dor, or a similar irregularity;

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

20 there was a misuse of funds;

21 ‘‘(VI) how any such cases of misuse of funds were

22 dealt with by the Commissioner;

23 ‘‘(VII) the final disposition of such cases of mis24 use of funds, including any criminal penalties im25 posed; and
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1 ‘‘(VIII) such other information as the Commis2 sioner deems appropriate.’’.

3 SEC. 103. DISQUALIFICATION FROM SERVICE AS REP4 RESENTATIVE PAYEE OF PERSONS CON5 VICTED OF OFFENSES RESULTING IN IMPRIS6 ONMENT FOR MORE THAN 1 YEAR OR FLEE7 ING PROSECUTION, CUSTODY, OR CONFINE8 MENT.

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

10 Social Security Act (42 U.S.C. 405(j)(2)) is amended—

11 (1) in subparagraph (B)(i)—

12 (A) by striking ‘‘and’’ at the end of sub13 clause (III);

14 (B) by redesignating subclause (IV) as sub15 clause (VI); and

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

17 following:

18 ‘‘(IV) obtain information concerning whether

19 such person has been convicted of any other offense

20 under Federal or State law which resulted in impris21 onment for more than 1 year,

22 ‘‘(V) obtain information concerning whether such

23 person is a person described in section

24 202(x)(1)(A)(iv), and’’;
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1 (2) in subparagraph (B), by adding at the end

2 the following:

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

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

5 Federal or State law (other than section 6103 of the Inter6 nal Revenue Code of 1986 and section 1106(c) of this Act),

7 the Commissioner shall furnish any Federal, State, or local

8 law enforcement officer, upon the written request of the offi9 cer, with the current address, social security account num10 ber, and photograph (if applicable) of any person inves11 tigated under this paragraph, if the officer furnishes the

12 Commissioner with the name of such person and such other

13 identifying information as may reasonably be required by

14 the Commissioner to establish the unique identity of such

15 person, and notifies the Commissioner that—

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

17 202(x)(1)(A)(iv),

18 ‘‘(II) such person has information that is nec19 essary for the officer to conduct the officer’s official

20 duties, and

21 ‘‘(III) the location or apprehension of such per22 son is within the officer’s official duties.’’;

23 (3) in subparagraph (C)(i)(II)—

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

25 and inserting ‘‘subparagraph (B)(i)(VI)’’; and
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1 (B) by striking ‘‘section

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

3 1631(a)(2)(B)(ii)(VI)’’; and

4 (4) in subparagraph (C)(i)—

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

6 (II);

7 (B) by striking the period at the end of sub8 clause (III) and inserting a comma; and

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

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

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

12 Commissioner determines that such certification

13 would be appropriate notwithstanding such convic14 tion, or

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

16 202(x)(1)(A)(iv).’’.

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

18 Act (42 U.S.C. 1007) is amended—

19 (1) in subsection (b)(2)—

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

22 (B) by redesignating subparagraph (D) as

23 subparagraph (F); and

24 (C) by inserting after subparagraph (C) the

25 following:
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1 ‘‘(D) obtain information concerning whether

2 such person has been convicted of any other of3 fense under Federal or State law which resulted

4 in imprisonment for more than 1 year;

5 ‘‘(E) obtain information concerning whether

6 such person is a person described in section

7 804(a)(2); and’’;

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

9 following:

10 ‘‘(3) Notwithstanding the provisions of section

11 552a of title 5, United States Code, or any other pro12 vision of Federal or State law (other than section

13 6103 of the Internal Revenue Code of 1986 and sec14 tion 1106(c) of this Act), the Commissioner shall fur15 nish any Federal, State, or local law enforcement offi16 cer, upon the written request of the officer, with the

17 current address, social security account number, and

18 photograph (if applicable) of any person investigated

19 under this subsection, if the officer furnishes the Com20 missioner with the name of such person and such

21 other identifying information as may reasonably be

22 required by the Commissioner to establish the unique

23 identity of such person, and notifies the Commis24 sioner that—
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1 ‘‘(A) such person is described in section

2 804(a)(2),

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

4 necessary for the officer to conduct the officer’s

5 official duties, and

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

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

8 and

9 (3) in subsection (d)(1)—

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

12 (B) by striking the period at the end of sub13 paragraph (C) and inserting a semicolon; and

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

15 ‘‘(D) such person has previously been con16 victed as described in subsection (b)(2)(D), un17 less the Commissioner determines that such pay18 ment would be appropriate notwithstanding such

19 conviction; or

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

21 section 804(a)(2).’’.

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

23 of such Act (42 U.S.C. 1383(a)(2)(B)) is amended—

24 (1) in clause (ii)—
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1 (A) by striking ‘‘and’’ at the end of sub2 clause (III);

3 (B) by redesignating subclause (IV) as sub4 clause (VI); and

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

6 following:

7 ‘‘(IV) obtain information concerning whether the

8 person has been convicted of any other offense under

9 Federal or State law which resulted in imprisonment

10 for more than 1 year;

11 ‘‘(V) obtain information concerning whether such

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

13 and’’;

14 (2) in clause (iii)(II)—

15 (A) by striking ‘‘clause (ii)(IV)’’ and insert16 ing ‘‘clause (ii)(VI)’’; and

17 (B) by striking ‘‘section

18 205(j)(2)(B)(i)(IV)’’ and inserting ‘‘section

19 205(j)(2)(B)(i)(VI)’’;

20 (3) in clause (iii)—

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

22 (II);

23 (B) by striking the period at the end of sub24 clause (III) and inserting a semicolon; and

25 (C) by adding at the end the following:
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1 ‘‘(IV) the person has previously been convicted as

2 described in clause (ii)(IV) of this subparagraph, un3 less the Commissioner determines that the payment

4 would be appropriate notwithstanding the conviction;

5 or

6 ‘‘(V) such person is a person described in section

7 1611(e)(4)(A).’’; and

8 (4) by adding at the end the following:

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

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

11 Federal or State law (other than section 6103 of the Inter12 nal Revenue Code of 1986 and section 1106(c) of this Act),

13 the Commissioner shall furnish any Federal, State, or local

14 law enforcement officer, upon the written request of the offi15 cer, with the current address, social security account num16 ber, and photograph (if applicable) of any person inves17 tigated under this subparagraph, if the officer furnishes the

18 Commissioner with the name of such person and such other

19 identifying information as may reasonably be required by

20 the Commissioner to establish the unique identity of such

21 person, and notifies the Commissioner that—

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

23 1611(e)(4)(A),
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1 ‘‘(II) such person has information that is nec2 essary for the officer to conduct the officer’s official

3 duties, and

4 ‘‘(III) the location or apprehension of such per5 son is within the officer’s official duties.’’.

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

7 section shall take effect on the first day of the thirteenth

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

9 (e) REPORT TO CONGRESS.—The Commissioner of So10 cial Security, in consultation with the Inspector General

11 of the Social Security Administration, shall prepare a re12 port evaluating whether the existing procedures and reviews

13 for the qualification (including disqualification) of rep14 resentative payees are sufficient to enable the Commissioner

15 to protect benefits from being misused by representative

16 payees. The Commissioner shall submit the report to the

17 Committee on Ways and Means of the House of Representa18 tives and the Committee on Finance of the Senate no later

19 than 270 days after the date of the enactment of this Act.

20 The Commissioner shall include in such report any rec21 ommendations that the Commissioner considers appro22 priate.
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1 SEC. 104. FEE FORFEITURE IN CASE OF BENEFIT MISUSE BY

2 REPRESENTATIVE PAYEES.

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

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

5 amended—

6 (1) in the first sentence, by striking ‘‘A’’ and in7 serting ‘‘Except as provided in the next sentence, a’’;

8 and

9 (2) in the second sentence, by striking ‘‘The Sec10 retary’’ and inserting the following: ‘‘A qualified or11 ganization may not collect a fee from an individual

12 for any month with respect to which the Commis13 sioner of Social Security or a court of competent ju14 risdiction has determined that the organization mis15 used all or part of the individual’s benefit, and any

16 amount so collected by the qualified organization for

17 such month shall be treated as a misused part of the

18 individual’s benefit for purposes of paragraphs (5)

19 and (6). The Commissioner’’.

20 (b) TITLE XVI AMENDMENTS.—Section

21 1631(a)(2)(D)(i) of such Act (42 U.S.C. 1383(a)(2)(D)(i))

22 is amended—

23 (1) in the first sentence, by striking ‘‘A’’ and in24 serting ‘‘Except as provided in the next sentence, a’’;

25 and
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1 (2) in the second sentence, by striking ‘‘The

2 Commissioner’’ and inserting the following: ‘‘A quali3 fied organization may not collect a fee from an indi4 vidual for any month with respect to which the Com5 missioner of Social Security or a court of competent

6 jurisdiction has determined that the organization

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

8 any amount so collected by the qualified organization

9 for such month shall be treated as a misused part of

10 the individual’s benefit for purposes of subparagraphs

11 (E) and (F). The Commissioner’’.

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

13 section shall apply to any month involving benefit misuse

14 by a representative payee in any case with respect to which

15 the Commissioner of Social Security or a court of competent

16 jurisdiction makes the determination of misuse after 180

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

18 SEC. 105. LIABILITY OF REPRESENTATIVE PAYEES FOR MIS19 USED BENEFITS.

20 (a) TITLE II AMENDMENTS.—Section 205(j) of the So21 cial Security Act (42 U.S.C. 405(j)) (as amended by sec22 tions 101 and 102) is amended further—

23 (1) by redesignating paragraphs (7), (8), and (9)

24 as paragraphs (8), (9), and (10), respectively;
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1 (2) in paragraphs (2)(C)(v), (3)(F), and (4)(B),

2 by striking ‘‘paragraph (9)’’ and inserting ‘‘para3 graph (10)’’;

4 (3) in paragraph (6)(A)(ii), by striking ‘‘para5 graph (9)’’ and inserting ‘‘paragraph (10)’’; and

6 (4) by inserting after paragraph (6) the fol7 lowing:

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

9 court of competent jurisdiction determines that a represent10 ative payee that is not a Federal, State, or local government

11 agency has misused all or part of an individual’s benefit

12 that was paid to such representative payee under this sub13 section, the representative payee shall be liable for the

14 amount misused, and such amount (to the extent not repaid

15 by the representative payee) shall be treated as an overpay16 ment of benefits under this title to the representative payee

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

18 the recovery of such overpayments. Subject to subparagraph

19 (B), upon recovering all or any part of such amount, the

20 Commissioner shall certify an amount equal to the recov21 ered amount for payment to such individual or such indi22 vidual’s alternative representative payee.

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

24 such individual or such individual’s alternative representa25 tive payee under subparagraph (A) and the amount cer-
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1 tified for payment under paragraph (5) may not exceed the

2 total benefit amount misused by the representative payee

3 with respect to such individual.’’.

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

5 (as amended by section 102(b)(2)) is amended further by

6 adding at the end the following:

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

8 ‘‘(1) IN GENERAL.—If the Commissioner of So9 cial Security or a court of competent jurisdiction de10 termines that a representative payee that is not a

11 Federal, State, or local government agency has mis12 used all or part of a qualified individual’s benefit

13 that was paid to such representative payee under this

14 section, the representative payee shall be liable for the

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

16 repaid by the representative payee) shall be treated as

17 an overpayment of benefits under this title to the rep18 resentative payee for all purposes of this Act and re19 lated laws pertaining to the recovery of such overpay20 ments. Subject to paragraph (2), upon recovering all

21 or any part of such amount, the Commissioner shall

22 make payment of an amount equal to the recovered

23 amount to such qualified individual or such qualified

24 individual’s alternative representative payee.
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1 ‘‘(2) LIMITATION.—The total of the amount paid

2 to such individual or such individual’s alternative

3 representative payee under paragraph (1) and the

4 amount paid under subsection (i) may not exceed the

5 total benefit amount misused by the representative

6 payee with respect to such individual.’’.

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

8 such Act (42 U.S.C. 1383(a)(2)) (as amended by section

9 102(b)(3)) is amended further—

10 (1) in subparagraph (G)(i)(II), by striking ‘‘sec11 tion 205(j)(9)’’ and inserting ‘‘section 205(j)(10)’’;

12 and

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

14 the following:

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

16 court of competent jurisdiction determines that a represent17 ative payee that is not a Federal, State, or local government

18 agency has misused all or part of an individual’s benefit

19 that was paid to the representative payee under this para20 graph, the representative payee shall be liable for the

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

22 by the representative payee) shall be treated as an overpay23 ment of benefits under this title to the representative payee

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

25 the recovery of the overpayments. Subject to clause (ii),
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1 upon recovering all or any part of the amount, the Commis2 sioner shall make payment of an amount equal to the recov3 ered amount to such individual or such individual’s alter4 native representative payee.

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

6 or such individual’s alternative representative payee under

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

8 may not exceed the total benefit amount misused by the rep9 resentative payee with respect to such individual.’’.

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

11 section shall apply to benefit misuse by a representative

12 payee in any case with respect to which the Commissioner

13 of Social Security or a court of competent jurisdiction

14 makes the determination of misuse after 180 days after the

15 date of the enactment of this Act.

16 SEC. 106. AUTHORITY TO REDIRECT DELIVERY OF BENEFIT

17 PAYMENTS WHEN A REPRESENTATIVE PAYEE

18 FAILS TO PROVIDE REQUIRED ACCOUNTING.

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

20 Social Security Act (42 U.S.C. 405(j)(3)) (as amended by

21 sections 102(a)(1)(B) and 105(a)(2)) is amended—

22 (1) by redesignating subparagraphs (E) and (F)

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

24 (2) by inserting after subparagraph (D) the fol25 lowing:
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1 ‘‘(E) In any case in which the person described in sub2 paragraph (A) or (D) receiving payments on behalf of an3 other fails to submit a report required by the Commissioner

4 of Social Security under subparagraph (A) or (D), the

5 Commissioner may, after furnishing notice to such person

6 and the individual entitled to such payment, require that

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

8 Security Administration serving the area in which the indi9 vidual resides in order to receive such payments.’’.

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

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

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

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

14 (2) by inserting after paragraph (2) the fol15 lowing:

16 ‘‘(3) AUTHORITY TO REDIRECT DELIVERY OF

17 BENEFIT PAYMENTS WHEN A REPRESENTATIVE PAYEE

18 FAILS TO PROVIDE REQUIRED ACCOUNTING.—In any

19 case in which the person described in paragraph (1)

20 or (2) receiving benefit payments on behalf of a quali21 fied individual fails to submit a report required by

22 the Commissioner of Social Security under paragraph

23 (1) or (2), the Commissioner may, after furnishing

24 notice to such person and the qualified individual, re25 quire that such person appear in person at a United
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1 States Government facility designated by the Social

2 Security Administration as serving the area in which

3 the qualified individual resides in order to receive

4 such benefit payments.’’.

5 (c) TITLE XVI AMENDMENT.—Section 1631(a)(2)(C)

6 of such Act (42 U.S.C. 1383(a)(2)(C)) is amended by add7 ing at the end the following:

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

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

10 fails to submit a report required by the Commissioner of

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

12 may, after furnishing notice to the person and the indi13 vidual entitled to the payment, require that such person ap14 pear in person at a field office of the Social Security Ad15 ministration serving the area in which the individual re16 sides in order to receive such payments.’’.

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

18 section shall take effect 180 days after the date of the enact19 ment of this Act.

20 SEC. 107. SURVEY OF USE OF PAYMENTS BY REPRESENTA21 TIVE PAYEES.

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

23 Act (42 U.S.C. 1310) is amended by adding at the end the

24 following:
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1 ‘‘(c)(1) In addition to the amount otherwise appro2 priated in any other law to carry out subsection (a) for

3 fiscal year 2004, up to $8,500,000 is authorized and appro4 priated and shall be used by the Commissioner of Social

5 Security under this subsection for purposes of conducting

6 a statistically valid survey to determine how payments

7 made to individuals, organizations, and State or local gov8 ernment agencies that are representative payees for benefits

9 paid under title II or XVI are being managed and used

10 on behalf of the beneficiaries for whom such benefits are

11 paid.

12 ‘‘(2) Not later than 18 months after the date of enact13 ment of this subsection, the Commissioner of Social Secu14 rity shall submit a report on the survey conducted in ac15 cordance with paragraph (1) to the Committee on Ways

16 and Means of the House of Representatives and the Com17 mittee on Finance of the Senate.’’.

18 Subtitle B—Enforcement

19 SEC. 111. CIVIL MONETARY PENALTY AUTHORITY WITH RE20 SPECT TO WRONGFUL CONVERSIONS BY REP21 RESENTATIVE PAYEES.

22 (a) IN GENERAL.—Section 1129(a) of the Social Secu23 rity Act (42 U.S.C. 1320a–8) is amended by adding at the

24 end the following:
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1 ‘‘(3) Any person (including an organization, agency,

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

3 capacity of a representative payee pursuant to section

4 205(j), 807, or 1631(a)(2), a payment under title II, VIII,

5 or XVI for the use and benefit of another individual, con6 verts such payment, or any part thereof, to a use that such

7 person knows or should know is other than for the use and

8 benefit of such other individual shall be subject to, in addi9 tion to any other penalties that may be prescribed by law,

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

11 such conversion. Such person shall also be subject to an as12 sessment, in lieu of damages sustained by the United States

13 resulting from the conversion, of not more than twice the

14 amount of any payments so converted.’’.

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

16 section shall apply with respect to violations committed

17 after the date of the enactment of this Act.

18 TITLE II—PROGRAM

19 PROTECTIONS

20 SEC. 201. CIVIL MONETARY PENALTY AUTHORITY WITH RE21 SPECT TO WITHHOLDING OF MATERIAL

22 FACTS.

23 (a) TREATMENT OF WITHHOLDING OF MATERIAL

24 FACTS.—
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1 (1) CIVIL PENALTIES.—Section 1129(a)(1) of the

2 Social Security Act (42 U.S.C. 1320a–8(a)(1)) is

3 amended—

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

5 and inserting ‘‘who—’’;

6 (B) by striking ‘‘makes’’ in the first sen7 tence and all that follows through ‘‘shall be sub8 ject to,’’ and inserting the following:

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

10 representation of a material fact, for use in deter11 mining any initial or continuing right to or the

12 amount of monthly insurance benefits under title II

13 or benefits or payments under title VIII or XVI, that

14 the person knows or should know is false or mis15 leading,

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

17 for such use with knowing disregard for the truth, or

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

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

20 fact which the person knows or should know is mate21 rial to the determination of any initial or continuing

22 right to or the amount of monthly insurance benefits

23 under title II or benefits or payments under title VIII

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

25 statement or representation with such omission is
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1 false or misleading or that the withholding of such

2 disclosure is misleading,

3 shall be subject to,’’;

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

5 benefits or payments while withholding disclo6 sure of such fact’’ after ‘‘each such statement or

7 representation’’ in the first sentence;

8 (D) by inserting ‘‘or because of such with9 holding of disclosure of a material fact’’ after

10 ‘‘because of such statement or representation’’ in

11 the second sentence; and

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

13 disclosure’’ after ‘‘such a statement or represen14 tation’’ in the second sentence.

15 (2) ADMINISTRATIVE PROCEDURE FOR IMPOSING

16 PENALTIES.—Section 1129A(a) of such Act (42

17 U.S.C. 1320a–8a(a)) is amended—

18 (A) by striking ‘‘who’’ the first place it ap19 pears and inserting ‘‘who—’’; and

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

21 through ‘‘shall be subject to,’’ and inserting the

22 following:

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

24 representation of a material fact, for use in deter25 mining any initial or continuing right to or the
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1 amount of monthly insurance benefits under title II

2 or benefits or payments under title XVI that the per3 son knows or should know is false or misleading,

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

5 for such use with knowing disregard for the truth, or

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

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

8 which the person knows or should know is material

9 to the determination of any initial or continuing

10 right to or the amount of monthly insurance benefits

11 under title II or benefits or payments under title XVI,

12 if the person knows, or should know, that the state13 ment or representation with such omission is false or

14 misleading or that the withholding of such disclosure

15 is misleading,

16 shall be subject to,’’.

17 (b) CLARIFICATION OF TREATMENT OF RECOVERED

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

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

20 case of amounts recovered arising out of a determination

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

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

23 (c) CONFORMING AMENDMENTS.—
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1 (1) Section 1129(b)(3)(A) of such Act (42

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

3 ‘‘charging fraud or false statements’’.

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

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

6 representations’’ and inserting ‘‘, representations, or

7 actions’’.

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

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

10 ‘‘statement or representation referred to in subsection

11 (a) was made’’ and inserting ‘‘violation occurred’’.

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

13 section shall apply with respect to violations committed

14 after the date on which the Commissioner of Social Security

15 implements the centralized computer file described in sec16 tion 202.

17 SEC. 202. ISSUANCE BY COMMISSIONER OF SOCIAL SECU18 RITY OF RECEIPTS TO ACKNOWLEDGE SUB19 MISSION OF REPORTS OF CHANGES IN WORK

20 OR EARNINGS STATUS OF DISABLED BENE21 FICIARIES.

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

23 after the date of the enactment of this Act, until such time

24 as the Commissioner of Social Security implements a cen25 tralized computer file recording the date of the submission
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1 of information by a disabled beneficiary (or representative)

2 regarding a change in the beneficiary’s work or earnings

3 status, the Commissioner shall issue a receipt to the disabled

4 beneficiary (or representative) each time he or she submits

5 documentation, or otherwise reports to the Commissioner,

6 on a change in such status.

7 SEC. 203. DENIAL OF TITLE II BENEFITS TO PERSONS FLEE8 ING PROSECUTION, CUSTODY, OR CONFINE9 MENT, AND TO PERSONS VIOLATING PROBA10 TION OR PAROLE.

11 (a) IN GENERAL.—Section 202(x) of the Social Secu12 rity Act (42 U.S.C. 402(x)) is amended—

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

14 all that follows and inserting the following: ‘‘Pris15 oners, Certain Other Inmates of Publicly Funded In16 stitutions, Fugitives, Probationers, and Parolees’’;

17 (2) in paragraph (1)(A)(ii)(IV), by striking ‘‘or’’

18 at the end;

19 (3) in paragraph (1)(A)(iii), by striking the pe20 riod at the end and inserting a comma;

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

22 following:

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

24 or confinement after conviction, under the laws of the

25 place from which the person flees, for a crime, or an
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1 attempt to commit a crime, which is a felony under

2 the laws of the place from which the person flees, or,

3 in jurisdictions that do not define crimes as felonies,

4 is punishable by death or imprisonment for a term

5 exceeding 1 year regardless of the actual sentence im6 posed, or

7 ‘‘(v) is violating a condition of probation or pa8 role imposed under Federal or State law.’’;

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

10 following:

11 ‘‘(iii) Notwithstanding subparagraph (A), the Com12 missioner shall, for good cause shown, pay the individual

13 benefits that have been withheld or would otherwise be with14 held pursuant to clause (iv) or (v) of subparagraph (A) if

15 the Commissioner determines that—

16 ‘‘(I) a court of competent jurisdiction has found

17 the individual not guilty of the criminal offense, dis18 missed the charges relating to the criminal offense,

19 vacated the warrant for arrest of the individual for

20 the criminal offense, or issued any similar exon21 erating order (or taken similar exonerating action),

22 or

23 ‘‘(II) the individual was erroneously implicated

24 in connection with the criminal offense by reason of

25 identity fraud.
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1 ‘‘(iv) Notwithstanding subparagraph (A), the Commis2 sioner may, for good cause shown based on mitigating cir3 cumstances, pay the individual benefits that have been

4 withheld or would otherwise be withheld pursuant to clause

5 (iv) or (v) of subparagraph (A) if the Commissioner deter6 mines that—

7 ‘‘(I) the offense described in clause (iv) or under8 lying the imposition of the probation or parole de9 scribed in clause (v) was nonviolent and not drug-re10 lated, and

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

12 benefits have been withheld or otherwise would be

13 withheld pursuant to subparagraph (A)(v), the action

14 that resulted in the violation of a condition of proba15 tion or parole was nonviolent and not drug-related.’’;

16 and

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

18 following:

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

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

21 Federal or State law (other than section 6103 of the Inter22 nal Revenue Code of 1986 and section 1106(c) of this Act),

23 the Commissioner shall furnish any Federal, State, or local

24 law enforcement officer, upon the written request of the offi25 cer, with the current address, Social Security number, and
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1 photograph (if applicable) of any beneficiary under this

2 title, if the officer furnishes the Commissioner with the

3 name of the beneficiary, and other identifying information

4 as reasonably required by the Commissioner to establish the

5 unique identity of the beneficiary, and notifies the Commis6 sioner that—

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

8 (v) of paragraph (1)(A); and

9 ‘‘(ii) the location or apprehension of the bene10 ficiary is within the officer’s official duties.’’.

11 (b) CONFORMING AMENDMENTS TO TITLE XVI.—Sec12 tion 1611(e) of the Social Security Act (42 U.S.C. 1382(e))

13 is amended—

14 (1) in paragraph (4)—

15 (A) by redesignating subparagraphs (A)

16 and (B) as clauses (i) and (ii), respectively;

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

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

19 redesignated by subparagraph (A)), by striking

20 ‘‘or which, in the case of the State of

21 New Jersey, is a high misdemeanor under the

22 laws of such State’’ and inserting ‘‘or, in juris23 dictions that do not define crimes as felonies, is

24 punishable by death or imprisonment for a term
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1 exceeding 1 year regardless of the actual sentence

2 imposed’’; and

3 (D) by adding at the end the following:

4 ‘‘(B) Notwithstanding subparagraph (A), the Commis5 sioner shall, for good cause shown, treat the person referred

6 to in subparagraph (A) as an eligible individual or eligible

7 spouse if the Commissioner determines that—

8 ‘‘(i) a court of competent jurisdiction has found

9 the person not guilty of the criminal offense, dis10 missed the charges relating to the criminal offense,

11 vacated the warrant for arrest of the person for the

12 criminal offense, or issued any similar exonerating

13 order (or taken similar exonerating action), or

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

15 connection with the criminal offense by reason of

16 identity fraud.

17 ‘‘(C) Notwithstanding subparagraph (A), the Commis18 sioner may, for good cause shown based on mitigating cir19 cumstances, treat the person referred to in subparagraph

20 (A) as an eligible individual or eligible spouse if the Com21 missioner determines that—

22 ‘‘(i) the offense described in subparagraph (A)(i)

23 or underlying the imposition of the probation or pa24 role described in subparagraph (A)(ii) was nonviolent

25 and not drug-related, and
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1 ‘‘(ii) in the case of a person who is not consid2 ered an eligible individual or eligible spouse pursuant

3 to subparagraph (A)(ii), the action that resulted in

4 the violation of a condition of probation or parole

5 was nonviolent and not drug-related.’’; and

6 (2) in paragraph (5), by striking subparagraphs

7 (A) and (B) and inserting the following:

8 ‘‘(A) the recipient is described in clause (i) or

9 (ii) of paragraph (4)(A); and

10 ‘‘(B) the location or apprehension of the recipi11 ent is within the officer’s official duties.’’.

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

13 the Social Security Act (42 U.S.C. 1004(a)(2)) is amended

14 by striking ‘‘or which, in the case of the State of New Jersey,

15 is a high misdemeanor under the laws of such State’’ and

16 inserting ‘‘or, in jurisdictions that do not define crimes as

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

18 exceeding 1 year regardless of the actual sentence imposed’’.

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

20 section shall take effect on the first day of the first month

21 that begins on or after the date that is 9 months after the

22 date of enactment of this Act.
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1 SEC. 204. REQUIREMENTS RELATING TO OFFERS TO PRO2 VIDE FOR A FEE, A PRODUCT OR SERVICE

3 AVAILABLE WITHOUT CHARGE FROM THE SO4 CIAL SECURITY ADMINISTRATION.

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

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

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

8 following:

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

10 individual to obtain a product or service that the person

11 knows or should know is provided free of charge by the So12 cial Security Administration unless, at the time the offer

13 is made, the person provides to the individual to whom the

14 offer is tendered a notice that—

15 ‘‘(i) explains that the product or service is avail16 able free of charge from the Social Security Adminis17 tration, and

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

19 Commissioner of Social Security respecting the con20 tent of such notice and its placement, visibility, and

21 legibility.

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

23 ‘‘(i) to serve as a claimant representative in con24 nection with a claim arising under title II, title VIII,

25 or title XVI; or
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1 ‘‘(ii) to prepare, or assist in the preparation of,

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

3 title XVI.’’; and

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

5 MISUSE OF SYMBOLS, EMBLEMS, OR NAMES IN REF6 ERENCE’’ and inserting ‘‘PROHIBITIONS RELATING TO

7 REFERENCES’’.

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

9 section shall apply to offers of assistance made after the

10 sixth month ending after the Commissioner of Social Secu11 rity promulgates final regulations prescribing the stand12 ards applicable to the notice required to be provided in con13 nection with such offer. The Commissioner shall promul14 gate such final regulations within 1 year after the date of

15 the enactment of this Act.

16 SEC. 205. REFUSAL TO RECOGNIZE CERTAIN INDIVIDUALS

17 AS CLAIMANT REPRESENTATIVES.

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

19 U.S.C. 406(a)(1)) is amended by inserting after the second

20 sentence the following: ‘‘Notwithstanding the preceding sen21 tences, the Commissioner, after due notice and opportunity

22 for hearing, (A) may refuse to recognize as a representative,

23 and may disqualify a representative already recognized,

24 any attorney who has been disbarred or suspended from any

25 court or bar to which he or she was previously admitted
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1 to practice or who has been disqualified from participating

2 in or appearing before any Federal program or agency, and

3 (B) may refuse to recognize, and may disqualify, as a non4 attorney representative any attorney who has been dis5 barred or suspended from any court or bar to which he or

6 she was previously admitted to practice. A representative

7 who has been disqualified or suspended pursuant to this sec8 tion from appearing before the Social Security Administra9 tion as a result of collecting or receiving a fee in excess

10 of the amount authorized shall be barred from appearing

11 before the Social Security Administration as a representa12 tive until full restitution is made to the claimant and,

13 thereafter, may be considered for reinstatement only under

14 such rules as the Commissioner may prescribe.’’.

15 SEC. 206. CRIMINAL PENALTY FOR CORRUPT OR FORCIBLE

16 INTERFERENCE WITH ADMINISTRATION OF

17 SOCIAL SECURITY ACT.

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

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

20 1129A the following:

21 ‘‘ATTEMPTS TO INTERFERE WITH ADMINISTRATION OF

22 SOCIAL SECURITY ACT

23 ‘‘SEC. 1129B. Whoever corruptly or by force or threats

24 of force (including any threatening letter or communica25 tion) attempts to intimidate or impede any officer, em26 ployee, or contractor of the Social Security Administration
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1 (including any State employee of a disability determina2 tion service or any other individual designated by the Com3 missioner of Social Security) acting in an official capacity

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

5 corruptly or by force or threats of force (including any

6 threatening letter or communication) obstructs or impedes,

7 or attempts to obstruct or impede, the due administration

8 of this Act, shall be fined not more than $5,000, imprisoned

9 not more than 3 years, or both, except that if the offense

10 is committed only by threats of force, the person shall be

11 fined not more than $3,000, imprisoned not more than 1

12 year, or both. In this subsection, the term ‘threats of force’

13 means threats of harm to the officer or employee of the

14 United States or to a contractor of the Social Security Ad15 ministration, or to a member of the family of such an officer

16 or employee or contractor.’’.

17 SEC. 207. USE OF SYMBOLS, EMBLEMS, OR NAMES IN REF18 ERENCE TO SOCIAL SECURITY OR MEDICARE.

19 (a) IN GENERAL.—Section 1140(a)(1) of the Social Se20 curity Act (42 U.S.C. 1320b–10(a)(1)) is amended—

21 (1) in subparagraph (A), by inserting ‘‘ ‘Centers

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

23 Care Financing Administration’,’’, by striking ‘‘or

24 ‘Medicaid’, ’’ and inserting ‘‘ ‘Medicaid’, ‘Death Bene25 fits Update’, ‘Federal Benefit Information’, ‘Funeral
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1 Expenses’, or ‘Final Supplemental Plan’,’’ and by in2 serting ‘‘ ‘CMS’,’’ after ‘‘ ‘HCFA’,’’;

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

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

5 Care Financing Administration,’’ each place it ap6 pears; and

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

8 striking ‘‘the Health Care Financing Administra9 tion,’’ each place it appears and inserting ‘‘the Cen10 ters for Medicare & Medicaid Services,’’.

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

12 section shall apply to items sent after 180 days after the

13 date of the enactment of this Act.

14 SEC. 208. DISQUALIFICATION FROM PAYMENT DURING

15 TRIAL WORK PERIOD UPON CONVICTION OF

16 FRAUDULENT CONCEALMENT OF WORK AC17 TIVITY.

18 (a) IN GENERAL.—Section 222(c) of the Social Secu19 rity Act (42 U.S.C. 422(c)) is amended by adding at the

20 end the following:

21 ‘‘(5) Upon conviction by a Federal court that an indi22 vidual has fraudulently concealed work activity during a

23 period of trial work from the Commissioner of Social Secu24 rity by—
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1 ‘‘(A) providing false information to the Commis2 sioner of Social Security as to whether the individual

3 had earnings in or for a particular period, or as to

4 the amount thereof;

5 ‘‘(B) receiving disability insurance benefits

6 under this title while engaging in work activity under

7 another identity, including under another social secu8 rity account number or a number purporting to be a

9 social security account number; or

10 ‘‘(C) taking other actions to conceal work activ11 ity with an intent fraudulently to secure payment in

12 a greater amount than is due or when no payment

13 is authorized,

14 no benefit shall be payable to such individual under this

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

16 before such conviction during which the individual rendered

17 services during the period of trial work with respect to

18 which the fraudulently concealed work activity occurred,

19 and amounts otherwise due under this title as restitution,

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

21 all cases be in addition to any amounts for which such indi22 vidual is liable as overpayments by reason of such conceal23 ment.’’.
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1 (b) EFFECTIVE DATE.—The amendment made by sub2 section (a) shall apply with respect to work activity per3 formed after the date of the enactment of this Act.

4 SEC. 209. AUTHORITY FOR JUDICIAL ORDERS OF RESTITU5 TION.

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

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

8 (1) by redesignating subsections (b), (c), and (d)

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

10 (2) by inserting after subsection (a) the fol11 lowing:

12 ‘‘(b)(1) Any Federal court, when sentencing a defend13 ant convicted of an offense under subsection (a), may order,

14 in addition to or in lieu of any other penalty authorized

15 by law, that the defendant make restitution to the victims

16 of such offense specified in paragraph (4).

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

18 States Code, shall apply with respect to the issuance and

19 enforcement of orders of restitution to victims of such offense

20 under this subsection.

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

22 only partial restitution, under this subsection, the court

23 shall state on the record the reasons therefor.

24 ‘‘(4) For purposes of paragraphs (1) and (2), the vic25 tims of an offense under subsection (a) are the following:
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1 ‘‘(A) Any individual who suffers a financial loss

2 as a result of the defendant’s violation of subsection

3 (a).

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

5 extent that the defendant’s violation of subsection (a)

6 results in—

7 ‘‘(i) the Commissioner of Social Security

8 making a benefit payment that should not have

9 been made; or

10 ‘‘(ii) an individual suffering a financial

11 loss due to the defendant’s violation of subsection

12 (a) in his or her capacity as the individual’s

13 representative payee appointed pursuant to sec14 tion 205(j).

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

16 funds paid to the Commissioner of Social Security as res17 titution pursuant to a court order shall be deposited in the

18 Federal Old-Age and Survivors Insurance Trust Fund, or

19 the Federal Disability Insurance Trust Fund, as appro20 priate.

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

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

23 Commissioner of Social Security shall certify for payment

24 to the individual described in such paragraph an amount

25 equal to the lesser of the amount of the funds so paid or
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1 the individual’s outstanding financial loss, except that such

2 amount may be reduced by the amount of any overpay3 ments of benefits owed under this title, title VIII, or title

4 XVI by the individual.’’; and

5 (3) by amending subsection (c) (as redesignated

6 by paragraph (1)), by striking the second sentence.

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

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

9 (1) by striking subsection (b) and inserting the

10 following:

11 ‘‘(b) COURT ORDER FOR RESTITUTION.—

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

13 sentencing a defendant convicted of an offense under

14 subsection (a), may order, in addition to or in lieu

15 of any other penalty authorized by law, that the de16 fendant make restitution to the Commissioner of So17 cial Security, in any case in which such offense re18 sults in—

19 ‘‘(A) the Commissioner of Social Security

20 making a benefit payment that should not have

21 been made, or

22 ‘‘(B) an individual suffering a financial

23 loss due to the defendant’s violation of subsection

24 (a) in his or her capacity as the individual’s
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1 representative payee appointed pursuant to sec2 tion 807(i).

3 ‘‘(2) RELATED PROVISIONS.—Sections 3612,

4 3663, and 3664 of title 18, United States Code, shall

5 apply with respect to the issuance and enforcement of

6 orders of restitution under this subsection. In so ap7 plying such sections, the Commissioner of Social Se8 curity shall be considered the victim.

9 ‘‘(3) STATED REASONS FOR NOT ORDERING RES10 TITUTION.—If the court does not order restitution, or

11 orders only partial restitution, under this subsection,

12 the court shall state on the record the reasons therefor.

13 ‘‘(4) RECEIPT OF RESTITUTION PAYMENTS.—

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

15 subparagraph (B), funds paid to the Commis16 sioner of Social Security as restitution pursuant

17 to a court order shall be deposited as miscella18 neous receipts in the general fund of the Treas19 ury.

20 ‘‘(B) PAYMENT TO THE INDIVIDUAL.—In the

21 case of funds paid to the Commissioner of Social

22 Security pursuant to paragraph (1)(B), the

23 Commissioner of Social Security shall certify for

24 payment to the individual described in such

25 paragraph an amount equal to the lesser of the
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1 amount of the funds so paid or the individual’s

2 outstanding financial loss as described in such

3 paragraph, except that such amount may be re4 duced by any overpayment of benefits owed

5 under this title, title II, or title XVI by the indi6 vidual.’’.

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

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

9 (1) by redesignating subsection (b) as subsection

10 (c); and

11 (2) by inserting after subsection (a) the fol12 lowing:

13 ‘‘(b)(1) Any Federal court, when sentencing a defend14 ant convicted of an offense under subsection (a), may order,

15 in addition to or in lieu of any other penalty authorized

16 by law, that the defendant make restitution to the Commis17 sioner of Social Security, in any case in which such offense

18 results in—

19 ‘‘(A) the Commissioner of Social Security mak20 ing a benefit payment that should not have been

21 made, or

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

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

24 her capacity as the individual’s representative payee

25 appointed pursuant to section 1631(a)(2).
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1 ‘‘(2) Sections 3612, 3663, and 3664 of title 18, United

2 States Code, shall apply with respect to the issuance and

3 enforcement of orders of restitution under this subsection.

4 In so applying such sections, the Commissioner of Social

5 Security shall be considered the victim.

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

7 only partial restitution, under this subsection, the court

8 shall state on the record the reasons therefor.

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

10 funds paid to the Commissioner of Social Security as res11 titution pursuant to a court order shall be deposited as mis12 cellaneous receipts in the general fund of the Treasury.

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

14 of Social Security pursuant to paragraph (1)(B), the Com15 missioner of Social Security shall certify for payment to

16 the individual described in such paragraph an amount

17 equal to the lesser of the amount of the funds so paid or

18 the individual’s outstanding financial loss as described in

19 such paragraph, except that such amount may be reduced

20 by any overpayment of benefits owed under this title, title

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

22 (3) by amending subsection (c) (as redesignated

23 by paragraph (1)) by striking ‘‘(1) If a person’’ and

24 all that follows through ‘‘(2)’’.
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1 (d) EFFECTIVE DATE.—The amendments made by

2 subsections (a), (b), and (c) shall apply with respect to vio3 lations occurring on or after the date of enactment of this

4 Act.

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

6 BENEFIT OVERPAYMENTS.

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

8 Act (42 U.S.C. 1320b–17) is amended to read as follows:

9 ‘‘CROSS-PROGRAM RECOVERY OF OVERPAYMENTS FROM

10 BENEFITS

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

12 the Commissioner of Social Security determines that more

13 than the correct amount of any payment has been made

14 to a person under a program described in subsection (e),

15 the Commissioner of Social Security may recover the

16 amount incorrectly paid by decreasing any amount which

17 is payable to such person under any other program speci18 fied in that subsection.

19 ‘‘(b) LIMITATION APPLICABLE TO CURRENT BENE20 FITS.—

21 ‘‘(1) IN GENERAL.—In carrying out subsection

22 (a), the Commissioner of Social Security may not de23 crease the monthly amount payable to an individual

24 under a program described in subsection (e) that is

25 paid when regularly due—
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1 ‘‘(A) in the case of benefits under title II or

2 VIII, by more than 10 percent of the amount of

3 the benefit payable to the person for that month

4 under such title; and

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

6 by an amount greater than the lesser of—

7 ‘‘(i) the amount of the benefit payable

8 to the person for that month; or

9 ‘‘(ii) an amount equal to 10 percent of

10 the person’s income for that month (includ11 ing such monthly benefit but excluding pay12 ments under title II when recovery is also

13 made from title II payments and excluding

14 income excluded pursuant to section

15 1612(b)).

16 ‘‘(2) EXCEPTION.—Paragraph (1) shall not

17 apply if—

18 ‘‘(A) the person or the spouse of the person

19 was involved in willful misrepresentation or con20 cealment of material information in connection

21 with the amount incorrectly paid; or

22 ‘‘(B) the person so requests.

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

24 UNDER TITLE VIII OR XVI.—In any case in which the

25 Commissioner of Social Security takes action in accordance
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1 with subsection (a) to recover an amount incorrectly paid

2 to any person, neither that person, nor (with respect to the

3 program described in subsection (e)(3)) any individual

4 whose eligibility for benefits under such program or whose

5 amount of such benefits, is determined by considering any

6 part of that person’s income, shall, as a result of such

7 action—

8 ‘‘(1) become eligible for benefits under the pro9 gram described in paragraph (2) or (3) of subsection

10 (e); or

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

12 eligible, become eligible for increased benefits under

13 such program.

14 ‘‘(d) INAPPLICABILITY OF PROHIBITION AGAINST AS15 SESSMENT AND LEGAL PROCESS.—Section 207 shall not

16 apply to actions taken under the provisions of this section

17 to decrease amounts payable under titles II and XVI.

18 ‘‘(e) PROGRAMS DESCRIBED.—The programs described

19 in this subsection are the following:

20 ‘‘(1) The old-age, survivors, and disability insur21 ance benefits program under title II.

22 ‘‘(2) The special benefits for certain World War

23 II veterans program under title VIII.

24 ‘‘(3) The supplemental security income benefits

25 program under title XVI (including, for purposes of
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1 this section, State supplementary payments paid by

2 the Commissioner pursuant to an agreement under

3 section 1616(a) of this Act or section 212(b) of Public

4 Law 93–66).’’.

5 (b) CONFORMING AMENDMENTS.—

6 (1) Section 204(g) of the Social Security Act (42

7 U.S.C. 404(g)) is amended to read as follows:

8 ‘‘(g) For provisions relating to the cross-program re9 covery of overpayments made under programs administered

10 by the Commissioner of Social Security, see section 1147.’’.

11 (2) Section 808 of the Social Security Act (42

12 U.S.C. 1008) is amended—

13 (A) in subsection (a)(1)—

14 (i) by striking subparagraph (B);

15 (ii) in the matter preceding subpara16 graph (A), by striking ‘‘any payment’’ and

17 all that follows through ‘‘under this title’’

18 and inserting ‘‘any payment under this

19 title’’; and

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

21 period;

22 (B) by striking subsection (b) and redesig23 nating subsections (c), (d), and (e) as subsections

24 (b), (c), and (d), respectively; and

25 (C) by adding at the end the following:
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1 ‘‘(e) CROSS-PROGRAM RECOVERY OF OVERPAY2 MENTS.—For provisions relating to the cross-program re3 covery of overpayments made under programs administered

4 by the Commissioner of Social Security, see section 1147.’’.

5 (3) Section 1147A of the Social Security Act (42

6 U.S.C. 1320b–18) is repealed.

7 (4) Section 1631(b) of the Social Security Act

8 (42 U.S.C. 1383(b)) is amended—

9 (A) in paragraph (1)(B)—

10 (i) by striking ‘‘excluding any other’’

11 and inserting ‘‘excluding payments under

12 title II when recovery is made from title II

13 payments pursuant to section 1147 and ex14 cluding’’; and

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

16 (B) by striking paragraph (6) and inserting

17 the following:

18 ‘‘(6) For provisions relating to the cross-program re19 covery of overpayments made under programs administered

20 by the Commissioner of Social Security, see section 1147.’’.

21 (c) EFFECTIVE DATE.—The amendments and repeal

22 made by this section shall take effect on the date of enact23 ment of this Act, and shall be effective with respect to over24 payments under titles II, VIII, and XVI of the Social Secu25 rity Act that are outstanding on or after such date.
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1 SEC. 211. PROHIBITION ON PAYMENT OF TITLE II BENEFITS

2 TO PERSONS NOT AUTHORIZED TO WORK IN

3 THE UNITED STATES.

4 (a) FULLY INSURED AND CURRENTLY INSURED INDI5 VIDUALS.—Section 214 (42 U.S.C. 414) is amended—

6 (1) in subsection (a), by inserting before the pe7 riod at the end the following: ‘‘, and who satisfies the

8 criterion specified in subsection (c)’’;

9 (2) in subsection (b), by inserting before the pe10 riod at the end the following: ‘‘, and who satisfies the

11 criterion specified in subsection (c)’’; and

12 (3) by adding at the end the following:

13 ‘‘(c) For purposes of subsections (a) and (b), the cri14 terion specified in this subsection is that the individual,

15 if not a United States citizen or national—

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

17 number that was, at the time of assignment, or at

18 any later time, consistent with the requirements of

19 subclause (I) or (III) of section 205(c)(2)(B)(i); or

20 ‘‘(2) at the time any such quarters of coverage

21 are earned—

22 ‘‘(A) is described in subparagraph (B) or

23 (D) of section 101(a)(15) of the Immigration and

24 Nationality Act,

25 ‘‘(B) is lawfully admitted temporarily to

26 the United States for business (in the case of an
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1 individual described in such subparagraph (B))

2 or the performance as a crewman (in the case of

3 an individual described in such subparagraph

4 (D)), and

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

6 crewman performed is within the scope of the

7 terms of such individual’s admission to the

8 United States.’’.

9 (b) DISABILITY BENEFITS.—Section 223(a)(1) of the

10 Social Security Act (42 U.S.C. 423(a)(1)) is amended—

11 (1) by redesignating subparagraphs (C) and (D)

12 as subparagraphs (D) and (E), respectively; and

13 (2) by inserting after subparagraph (B), the fol14 lowing:

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

16 ‘‘(i) has been assigned a social security ac17 count number that was, at the time of assign18 ment, or at any later time, consistent with the

19 requirements of subclause (I) or (III) of section

20 205(c)(2)(B)(i); or

21 ‘‘(ii) at the time any quarters of coverage

22 are earned—

23 ‘‘(I) is described in subparagraph (B)

24 or (D) of section 101(a)(15) of the Immigra25 tion and Nationality Act,
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1 ‘‘(II) is lawfully admitted temporarily

2 to the United States for business (in the

3 case of an individual described in such sub4 paragraph (B)) or the performance as a

5 crewman (in the case of an individual de6 scribed in such subparagraph (D)), and

7 ‘‘(III) the business engaged in or serv8 ice as a crewman performed is within the

9 scope of the terms of such individual’s ad10 mission to the United States.’’.

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

12 section apply to benefit applications based on social secu13 rity account numbers issued on or after January 1, 2004.

14 TITLE III—ATTORNEY REP15 RESENTATIVE FEE PAYMENT

16 SYSTEM IMPROVEMENTS

17 SEC. 301. CAP ON ATTORNEY ASSESSMENTS.

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

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

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

21 amount of the assessment may not exceed the greater

22 of $75 or the adjusted amount as provided pursuant

23 to the following two sentences’’ after ‘‘subparagraph

24 (B)’’; and
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1 (2) by adding at the end the following: ‘‘In the

2 case of any calendar year beginning after the amend3 ments made by section 301 of the Social Security

4 Protection Act of 2003 take effect, the dollar amount

5 specified in the preceding sentence (including a pre6 viously adjusted amount) shall be adjusted annually

7 under the procedures used to adjust benefit amounts

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

9 shall be based on the higher of $75 or the previously

10 adjusted amount that would have been in effect for

11 December of the preceding year, but for the rounding

12 of such amount pursuant to the following sentence.

13 Any amount so adjusted that is not a multiple of $1

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

15 in no case less than $75.’’.

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

17 section shall apply with respect to fees for representation

18 of claimants which are first required to be certified or paid

19 under section 206 of the Social Security Act on or after

20 the first day of the first month that begins after 180 days

21 after the date of the enactment of this Act.

22 SEC. 302. TEMPORARY EXTENSION OF ATTORNEY FEE PAY23 MENT SYSTEM TO TITLE XVI CLAIMS.

24 (a) IN GENERAL.—Section 1631(d)(2) of the Social Se25 curity Act (42 U.S.C. 1383(d)(2)) is amended—
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1 (1) in subparagraph (A), in the matter preceding

2 clause (i)—

3 (A) by striking ‘‘section 206(a)’’ and insert4 ing ‘‘section 206’’;

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

6 thereof)’’ and inserting ‘‘(other than subsections

7 (a)(4) and (d) thereof)’’; and

8 (C) by striking ‘‘paragraph (2) thereof’’ and

9 inserting ‘‘such section’’;

10 (2) in subparagraph (A)(i)—

11 (A) by striking ‘‘in subparagraphs

12 (A)(ii)(I) and (C)(i),’’ and inserting ‘‘in sub13 paragraphs (A)(ii)(I) and (D)(i) of subsection

14 (a)(2)’’; and

15 (B) by striking ‘‘and’’ at the end;

16 (3) by striking subparagraph (A)(ii) and insert17 ing the following:

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

19 and (b)(1)(B)(i), the phrase ‘paragraph (7)(A) or

20 (8)(A) of section 1631(a) or the requirements of due

21 process of law’ for the phrase ‘subsection (g) or (h) of

22 section 223’;

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

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

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

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

3 ‘certify the amount of such fee for payment’ and by

4 striking, in subsection (b)(1)(A), the phrase ‘or cer5 tified for payment’; and

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

7 the phrase ‘deemed to be such amounts as determined

8 before any applicable reduction under section 1631(g),

9 and reduced by the amount of any reduction in bene10 fits under this title or title II made pursuant to sec11 tion 1127(a)’ for the phrase ‘determined before any

12 applicable reduction under section 1127(a))’.’’; and

13 (4) by redesignating subparagraph (B) as sub14 paragraph (D) and inserting after subparagraph (A)

15 the following:

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

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

18 and the person representing the claimant is an attorney,

19 the Commissioner of Social Security shall pay out of such

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

21 lesser of—

22 ‘‘(i) so much of the maximum fee as does not ex23 ceed 25 percent of such past-due benefits (as deter24 mined before any applicable reduction under section

25 1631(g) and reduced by the amount of any reduction
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1 in benefits under this title or title II pursuant to sec2 tion 1127(a)), or

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

4 after any applicable reductions under sections

5 1631(g) and 1127(a).

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

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

8 pursuant to subparagraph (B), the Commissioner shall im9 pose on the attorney an assessment calculated in accordance

10 with clause (ii).

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

12 shall be equal to the product obtained by multiplying the

13 amount of the representative’s fee that would be required

14 to be paid by subparagraph (B) before the application of

15 this subparagraph, by the percentage specified in subclause

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

17 may not exceed $75. In the case of any calendar year begin18 ning after the amendments made by section 302 of the So19 cial Security Protection Act of 2003 take effect, the dollar

20 amount specified in the preceding sentence (including a

21 previously adjusted amount) shall be adjusted annually

22 under the procedures used to adjust benefit amounts under

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

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

25 amount that would have been in effect for December of the
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1 preceding year, but for the rounding of such amount pursu2 ant to the following sentence. Any amount so adjusted that

3 is not a multiple of $1 shall be rounded to the next lowest

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

5 ‘‘(II) The percentage specified in this subclause is such

6 percentage rate as the Commissioner determines is nec7 essary in order to achieve full recovery of the costs of deter8 mining and approving fees to attorneys from the past-due

9 benefits of claimants, but not in excess of 6.3 percent.

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

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

12 amount of the fee otherwise required by subparagraph (B)

13 to be paid to the attorney from a claimant’s past-due bene14 fits.

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

16 clause (i) may not, directly or indirectly, request or other17 wise obtain reimbursement for such assessment from the

18 claimant whose claim gave rise to the assessment.

19 ‘‘(v) Assessments on attorneys collected under this sub20 paragraph shall be deposited as miscellaneous receipts in

21 the general fund of the Treasury.

22 ‘‘(vi) The assessments authorized under this subpara23 graph shall be collected and available for obligation only

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

25 appropriations Acts. Amounts so appropriated are author-
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1 ized to remain available until expended, for administrative

2 expenses in carrying out this title and related laws.’’.

3 (b) CONFORMING AMENDMENTS.—Section 1631(a) of

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

5 (1) in paragraph (2)(F)(i)(II), by inserting

6 ‘‘and payment of attorney fees under subsection

7 (d)(2)(B)’’ after ‘‘subsection (g)’’; and

8 (2) in paragraph (10)(A)—

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

10 inserting ‘‘and payment of attorney fees under

11 subsection (d)(2)(B)’’ after ‘‘subsection (g)’’; and

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

13 inserting ‘‘and payment of attorney fees under

14 subsection (d)(2)(B)’’ after ‘‘State’’.

15 (c) EFFECTIVE DATE.—

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

17 this section shall apply with respect to fees for rep18 resentation of claimants which are first required to be

19 paid under section 1631(d)(2) of the Social Security

20 Act on or after the date of the submission by the Com21 missioner of Social Security to each House of Con22 gress pursuant to section 303(d) of this Act of written

23 notice of completion of full implementation of the re24 quirements for operation of the demonstration project

25 under section 303 of this Act.
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1 (2) SUNSET.—Such amendments shall not apply

2 with respect to fees for representation of claimants in

3 the case of any claim for benefits with respect to

4 which the agreement for representation is entered into

5 after 5 years after the date described in paragraph

6 (1).

7 SEC. 303. NATIONWIDE DEMONSTRATION PROJECT PRO8 VIDING FOR EXTENSION OF FEE WITH9 HOLDING PROCEDURES TO NON-ATTORNEY

10 REPRESENTATIVES.

11 (a) IN GENERAL.—The Commissioner of Social Secu12 rity (hereafter in this section referred to as the ‘‘Commis13 sioner’’) shall develop and carry out a nationwide dem14 onstration project under this section with respect to agents

15 and other persons, other than attorneys, who represent

16 claimants under titles II and XVI of the Social Security

17 Act before the Commissioner. The demonstration project

18 shall be designed to determine the potential results of ex19 tending to such representatives the fee withholding proce20 dures and assessment procedures that apply under sections

21 206 and section 1631(d)(2) of such Act to attorneys seeking

22 direct payment out of past due benefits under such titles

23 and shall include an analysis of the effect of such extension

24 on claimants and program administration.
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1 (b) STANDARDS FOR INCLUSION IN DEMONSTRATION

2 PROJECT.—Fee-withholding procedures may be extended

3 under the demonstration project carried out pursuant to

4 subsection (a) to any non-attorney representative only if

5 such representative meets at least the following pre6 requisites:

7 (1) The representative has been awarded a bach8 elor’s degree from an accredited institution of higher

9 education, or has been determined by the Commis10 sioner to have equivalent qualifications derived from

11 training and work experience.

12 (2) The representative has passed an examina13 tion, written and administered by the Commissioner,

14 which tests knowledge of the relevant provisions of the

15 Social Security Act and the most recent developments

16 in agency and court decisions affecting titles II and

17 XVI of such Act.

18 (3) The representative has secured professional

19 liability insurance, or equivalent insurance, which the

20 Commissioner has determined to be adequate to pro21 tect claimants in the event of malpractice by the rep22 resentative.

23 (4) The representative has undergone a criminal

24 background check to ensure the representative’s fitness

25 to practice before the Commissioner.
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1 (5) The representative demonstrates ongoing

2 completion of qualified courses of continuing edu3 cation, including education regarding ethics and pro4 fessional conduct, which are designed to enhance pro5 fessional knowledge in matters related to entitlement

6 to, or eligibility for, benefits based on disability under

7 titles II and XVI of such Act. Such continuing edu8 cation, and the instructors providing such education,

9 shall meet such standards as the Commissioner may

10 prescribe.

11 (c) ASSESSMENT OF FEES.—

12 (1) IN GENERAL.—The Commissioner may assess

13 representatives reasonable fees to cover the cost to the

14 Social Security Administration of administering the

15 prerequisites described in subsection (b).

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

17 paragraph (1) shall be credited to the Federal Old-Age

18 and Survivors Insurance Trust Fund and the Federal

19 Disability Insurance Trust Fund, or deposited as

20 miscellaneous receipts in the general fund of the

21 Treasury, based on such allocations as the Commis22 sioner of Social Security determines appropriate.

23 (3) AUTHORIZATION OF APPROPRIATIONS.—The

24 fees authorized under this subparagraph shall be col25 lected and available for obligation only to the extent
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1 and in the amount provided in advance in appro2 priations Acts. Amounts so appropriated are author3 ized to remain available until expended for admin4 istering the prerequisites described in subsection (b).

5 (d) NOTICE TO CONGRESS AND APPLICABILITY OF FEE

6 WITHHOLDING PROCEDURES.—Not later than 1 year after

7 the date of enactment of this Act, the Commissioner shall

8 complete such actions as are necessary to fully implement

9 the requirements for full operation of the demonstration

10 project and shall submit to each House of Congress a writ11 ten notice of the completion of such actions. The applica12 bility under this section to non-attorney representatives of

13 the fee withholding procedures and assessment procedures

14 under sections 206 and 1631(d)(2) of the Social Security

15 Act shall be effective with respect to fees for representation

16 of claimants in the case of claims for benefits with respect

17 to which the agreement for representation is entered into

18 by such non-attorney representatives during the period be19 ginning with the date of the submission of such notice by

20 the Commissioner to Congress and ending with the termi21 nation date of the demonstration project.

22 (e) REPORTS BY THE COMMISSIONER; TERMI23 NATION.—

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

25 which is 1 year after the date of enactment of this
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1 Act, and annually thereafter, the Commissioner shall

2 transmit to the Committee on Ways and Means of the

3 House of Representatives and to the Committee on Fi4 nance of the Senate an annual interim report on the

5 progress of the demonstration project carried out

6 under this section, together with any related data and

7 materials that the Commissioner may consider appro8 priate.

9 (2) TERMINATION DATE AND FINAL REPORT.—

10 The termination date of the demonstration project

11 under this section is the date which is 5 years after

12 the date of the submission of the notice by the Com13 missioner to each House of Congress pursuant to sub14 section (d). The authority under the preceding provi15 sions of this section shall not apply in the case of

16 claims for benefits with respect to which the agree17 ment for representation is entered into after the ter18 mination date. Not later than 90 days after the ter19 mination date, the Commissioner shall submit to the

20 Committee on Ways and Means of the House of Rep21 resentatives and to the Committee on Finance of the

22 Senate a final report with respect to the demonstra23 tion project.
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1 SEC. 304. GAO STUDY REGARDING THE FEE PAYMENT PROC2 ESS FOR CLAIMANT REPRESENTATIVES.

3 (a) STUDY.—

4 (1) IN GENERAL.—The Comptroller General of

5 the United States shall study and evaluate the ap6 pointment and payment of claimant representatives

7 appearing before the Commissioner of Social Security

8 in connection with benefit claims under titles II and

9 XVI of the Social Security Act (42 U.S.C. 401 et seq.,

10 1381 et seq.) in each of the following groups:

11 (A) Attorney claimant representatives who

12 elect fee withholding under section 206 or

13 1631(d)(2) of such Act.

14 (B) Attorney claimant representatives who

15 do not elect such fee withholding.

16 (C) Non-attorney claimant representatives

17 who are eligible for, and elect, such fee with18 holding.

19 (D) Non-attorney claimant representatives

20 who are eligible for, but do not elect, such fee

21 withholding.

22 (E) Non-attorney claimant representatives

23 who are not eligible for such fee withholding.

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

25 the study under this subsection, the Comptroller Gen-
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1 eral shall, for each of group of claimant representa2 tives described in paragraph (1)—

3 (A) conduct a survey of the relevant charac4 teristics of such claimant representatives

5 including—

6 (i) qualifications and experience;

7 (ii) the type of employment of such

8 claimant representatives, such as with an

9 advocacy group, State or local government,

10 or insurance or other company;

11 (iii) geographical distribution between

12 urban and rural areas;

13 (iv) the nature of claimants’ cases,

14 such as whether the cases are for disability

15 insurance benefits only, supplemental secu16 rity income benefits only, or concurrent

17 benefits;

18 (v) the relationship of such claimant

19 representatives to claimants, such as wheth20 er the claimant is a friend, family member,

21 or client of the claimant representative; and

22 (vi) the amount of compensation (if

23 any) paid to the claimant representatives

24 and the method of payment of such com25 pensation;
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1 (B) assess the quality and effectiveness of

2 the services provided by such claimant represent3 atives, including a comparison of claimant satis4 faction or complaints and benefit outcomes, ad5 justed for differences in claimant representatives’

6 caseload, claimants’ diagnostic group, level of de7 cision, and other relevant factors;

8 (C) assess the interactions between fee with9 holding under sections 206 and 1631(d)(2) of

10 such Act (including under the amendments made

11 by section 302 of this Act and under the dem12 onstration project conducted under section 303 of

13 this Act), the windfall offset under section 1127

14 of such Act, and interim assistance reimburse15 ments under section 1631(g) of such Act;

16 (D) assess the potential results of making

17 permanent the fee withholding procedures under

18 sections 206 and 1631(d)(2) of such Act under

19 the amendments made by section 302 of this Act

20 and under the demonstration project conducted

21 under section 303 of this Act with respect to pro22 gram administration and claimant outcomes,

23 and assess whether the rules and procedures em24 ployed by the Commissioner of Social Security to

25 evaluate the qualifications and performance of
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1 claimant representatives should be revised prior

2 to making such procedures permanent; and

3 (E) make such recommendations for admin4 istrative and legislative changes as the Comp5 troller General of the United States considers

6 necessary or appropriate.

7 (3) CONSULTATION REQUIRED.—The Comptroller

8 General of the United States shall consult with bene9 ficiaries under title II of such Act, beneficiaries under

10 title XVI of such Act, claimant representatives of

11 beneficiaries under such titles, and other interested

12 parties, in conducting the study and evaluation re13 quired under paragraph (1).

14 (b) REPORT.—Not later than 3 years after the date

15 of the submission by the Commissioner of Social Security

16 to each House of Congress pursuant to section 303(d) of

17 this Act of written notice of completion of full implementa18 tion of the requirements for operation of the demonstration

19 project under section 303 of this Act, the Comptroller Gen20 eral of the United States shall submit to the Committee on

21 Ways and Means of the House of Representatives and the

22 Committee on Finance of the Senate a report on the results

23 of the study and evaluation conducted pursuant to sub24 section (a).
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1 TITLE IV—MISCELLANEOUS AND

2 TECHNICAL AMENDMENTS

3 Subtitle A—Amendments Relating

4 to the Ticket to Work and Work

5 Incentives Improvement Act of

6 1999

7 SEC. 401. APPLICATION OF DEMONSTRATION AUTHORITY

8 SUNSET DATE TO NEW PROJECTS.

9 Section 234 of the Social Security Act (42 U.S.C. 434)

10 is amended—

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

12 striking ‘‘conducted under subsection (a)’’ and insert13 ing ‘‘initiated under subsection (a) on or before De14 cember 17, 2005’’; and

15 (2) in subsection (d)(2), by striking the first sen16 tence and inserting the following: ‘‘The authority to

17 initiate projects under the preceding provisions of this

18 section shall terminate on December 18, 2005.’’.

19 SEC. 402. EXPANSION OF WAIVER AUTHORITY AVAILABLE

20 IN CONNECTION WITH DEMONSTRATION

21 PROJECTS PROVIDING FOR REDUCTIONS IN

22 DISABILITY INSURANCE BENEFITS BASED ON

23 EARNINGS.

24 Section 302(c) of the Ticket to Work and Work Incen25 tives Improvement Act of 1999 (42 U.S.C. 434 note) is
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1 amended by striking ‘‘(42 U.S.C. 401 et seq.),’’ and insert2 ing ‘‘(42 U.S.C. 401 et seq.) and the requirements of section

3 1148 of such Act (42 U.S.C. 1320b–19) as they relate to

4 the program established under title II of such Act,’’.

5 SEC. 403. FUNDING OF DEMONSTRATION PROJECTS PRO6 VIDING FOR REDUCTIONS IN DISABILITY IN7 SURANCE BENEFITS BASED ON EARNINGS.

8 Section 302(f) of the Ticket to Work and Work Incen9 tives Improvement Act of 1999 (42 U.S.C. 434 note) is

10 amended to read as follows:

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

12 demonstration projects under this section shall be paid from

13 funds available for the administration of title II or XVIII

14 of the Social Security Act, as appropriate. Benefits payable

15 to or on behalf of individuals by reason of participation

16 in projects under this section shall be made from the Federal

17 Disability Insurance Trust Fund and the Federal Old-Age

18 and Survivors Insurance Trust Fund, as determined appro19 priate by the Commissioner of Social Security, and from

20 the Federal Hospital Insurance Trust Fund and the Federal

21 Supplementary Medical Insurance Trust Fund, as deter22 mined appropriate by the Secretary of Health and Human

23 Services, from funds available for benefits under such title

24 II or XVIII.’’.
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1 SEC. 404. AVAILABILITY OF FEDERAL AND STATE WORK IN2 CENTIVE SERVICES TO ADDITIONAL INDIVID3 UALS.

4 (a) FEDERAL WORK INCENTIVES OUTREACH PRO5 GRAM.—

6 (1) IN GENERAL.—Section 1149(c)(2) of the So7 cial Security Act (42 U.S.C. 1320b–20(c)(2)) is

8 amended to read as follows:

9 ‘‘(2) DISABLED BENEFICIARY.—The term ‘dis10 abled beneficiary’ means an individual—

11 ‘‘(A) who is a disabled beneficiary as de12 fined in section 1148(k)(2) of this Act;

13 ‘‘(B) who is receiving a cash payment de14 scribed in section 1616(a) of this Act or a sup15 plementary payment described in section

16 212(a)(3) of Public Law 93–66 (without regard

17 to whether such payment is paid by the Commis18 sioner pursuant to an agreement under section

19 1616(a) of this Act or under section 212(b) of

20 Public Law 93–66);

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

22 this Act, is considered to be receiving benefits

23 under title XVI of this Act; or

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

25 A of title XVIII of this Act by reason of the pe26 nultimate sentence of section 226(b) of this Act.’’.
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1 (2) EFFECTIVE DATE.—The amendment made by

2 this subsection shall apply with respect to grants, co3 operative agreements, or contracts entered into on or

4 after the date of the enactment of this Act.

5 (b) STATE GRANTS FOR WORK INCENTIVES ASSIST6 ANCE.—

7 (1) DEFINITION OF DISABLED BENEFICIARY.—

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

9 21(g)(2)) is amended to read as follows:

10 ‘‘(2) DISABLED BENEFICIARY.—The term ‘dis11 abled beneficiary’ means an individual—

12 ‘‘(A) who is a disabled beneficiary as de13 fined in section 1148(k)(2) of this Act;

14 ‘‘(B) who is receiving a cash payment de15 scribed in section 1616(a) of this Act or a sup16 plementary payment described in section

17 212(a)(3) of Public Law 93–66 (without regard

18 to whether such payment is paid by the Commis19 sioner pursuant to an agreement under section

20 1616(a) of this Act or under section 212(b) of

21 Public Law 93–66);

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

23 this Act, is considered to be receiving benefits

24 under title XVI of this Act; or
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1 ‘‘(D) who is entitled to benefits under part

2 A of title XVIII of this Act by reason of the pe3 nultimate sentence of section 226(b) of this Act.’’.

4 (2) ADVOCACY OR OTHER SERVICES NEEDED TO

5 MAINTAIN GAINFUL EMPLOYMENT.—Section

6 1150(b)(2) of such Act (42 U.S.C. 1320b–21(b)(2)) is

7 amended by striking ‘‘secure or regain’’ and inserting

8 ‘‘secure, maintain, or regain’’.

9 (3) EFFECTIVE DATE.—The amendments made

10 by this subsection shall apply with respect to pay11 ments provided after the date of the enactment of this

12 Act.

13 SEC. 405. TECHNICAL AMENDMENT CLARIFYING TREAT14 MENT FOR CERTAIN PURPOSES OF INDI15 VIDUAL WORK PLANS UNDER THE TICKET TO

16 WORK AND SELF-SUFFICIENCY PROGRAM.

17 (a) IN GENERAL.—Section 1148(g)(1) of the Social Se18 curity Act (42 U.S.C. 1320b–19(g)(1)) is amended by add19 ing at the end, after and below subparagraph (E), the fol20 lowing:

21 ‘‘An individual work plan established pursuant to

22 this subsection shall be treated, for purposes of section

23 51(d)(6)(B)(i) of the Internal Revenue Code of 1986,

24 as an individualized written plan for employment
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1 under a State plan for vocational rehabilitation serv2 ices approved under the Rehabilitation Act of 1973.’’.

3 (b) EFFECTIVE DATE.—The amendment made by sub4 section (a) shall take effect as if included in section 505

5 of the Ticket to Work and Work Incentives Improvement

6 Act of 1999 (Public Law 106–170; 113 Stat. 1921).

7 SEC. 406. GAO STUDY REGARDING THE TICKET TO WORK

8 AND SELF-SUFFICIENCY PROGRAM.

9 (a) GAO REPORT.—Not later than 12 months after the

10 date of enactment of this Act, the Comptroller General of

11 the United States shall submit a report to Congress regard12 ing the Ticket to Work and Self-Sufficiency Program estab13 lished under section 1148 of the Social Security Act (42

14 U.S.C. 1320b–19) that—

15 (1) examines the annual and interim reports

16 issued by States, the Ticket to Work and Work Incen17 tives Advisory Panel established under section 101(f)

18 of the Ticket to Work and Work Incentives Improve19 ment Act of 1999 (42 U.S.C. 1320b–19 note), and the

20 Commissioner of Social Security regarding such pro21 gram;

22 (2) assesses the effectiveness of the activities car23 ried out under such program; and

24 (3) recommends such legislative or administra25 tive changes as the Comptroller General determines
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1 are appropriate to improve the effectiveness of such

2 program.

3 SEC. 407. REAUTHORIZATION OF APPROPRIATIONS FOR

4 CERTAIN WORK INCENTIVES PROGRAMS.

5 (a) BENEFITS PLANNING, ASSISTANCE, AND OUT6 REACH.—Section 1149(d) of the Social Security Act (42

7 U.S.C. 1320b–20(d)) is amended by striking ‘‘2004’’ and

8 inserting ‘‘2009’’.

9 (b) PROTECTION AND ADVOCACY.—Section 1150(h) of

10 the Social Security Act (42 U.S.C. 1320b–21(h)) is amend11 ed by striking ‘‘2004’’ and inserting ‘‘2009’’.

12 Subtitle B—Miscellaneous

13 Amendments

14 SEC. 411. ELIMINATION OF TRANSCRIPT REQUIREMENT IN

15 REMAND CASES FULLY FAVORABLE TO THE

16 CLAIMANT.

17 (a) IN GENERAL.—Section 205(g) of the Social Secu18 rity Act (42 U.S.C. 405(g)) is amended in the sixth sen19 tence by striking ‘‘and a transcript’’ and inserting ‘‘and,

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

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

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

23 section shall apply with respect to final determinations

24 issued (upon remand) on or after the date of the enactment

25 of this Act.
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1 SEC. 412. NONPAYMENT OF BENEFITS UPON REMOVAL

2 FROM THE UNITED STATES.

3 (a) IN GENERAL.—Section 202(n) of the Social Secu4 rity Act (42 U.S.C. 402(n)) is amended—

5 (1) in paragraph (1), by striking ‘‘section 241(a)

6 (other than under paragraph (1)(C) or (1)(E) thereof)

7 of the Immigration and Nationality Act’’ and insert8 ing ‘‘section 237(a) of the Immigration and Nation9 ality Act (other than under paragraph (1)(C) of such

10 section) or under section 212(a)(6)(A) of such Act’’;

11 (2) in paragraph (2), by striking ‘‘section 241(a)

12 of the Immigration and Nationality Act (other than

13 under paragraph (1)(C) or (1)(E) thereof)’’ and in14 serting ‘‘section 237(a) of the Immigration and Na15 tionality Act (other than under paragraph (1)(C) of

16 such section) or under section 212(a)(6)(A) of such

17 Act’’;

18 (3) in paragraph (3), by striking ‘‘paragraph

19 (19) of section 241(a) of the Immigration and Nation20 ality Act (relating to persecution of others on account

21 of race, religion, national origin, or political opinion,

22 under the direction of or in association with the Nazi

23 government of Germany or its allies) shall be consid24 ered to have been deported under such paragraph

25 (19)’’ and inserting ‘‘paragraph (4)(D) of section

26 241(a) of the Immigration and Nationality Act (re-
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1 lating to participating in Nazi persecutions or geno2 cide) shall be considered to have been deported under

3 such paragraph (4)(D)’’; and

4 (4) in paragraph (3) (as amended by paragraph

5 (3) of this subsection), by striking ‘‘241(a)’’ and in6 serting ‘‘237(a)’’.

7 (b) TECHNICAL CORRECTIONS.—

8 (1) TERMINOLOGY REGARDING REMOVAL FROM

9 THE UNITED STATES.—Section 202(n) of the Social

10 Security Act (42 U.S.C. 402(n)) (as amended by sub11 section (a)) is amended further—

12 (A) by striking ‘‘deportation’’ each place it

13 appears and inserting ‘‘removal’’;

14 (B) by striking ‘‘deported’’ each place it ap15 pears and inserting ‘‘removed’’; and

16 (C) in the heading, by striking ‘‘Deporta17 tion’’ and inserting ‘‘Removal’’.

18 (2) REFERENCES TO THE SECRETARY OF HOME19 LAND SECURITY.—Section 202(n) of the Social Secu20 rity Act (42 U.S.C. 402(n)) (as amended by sub21 section (a) and paragraph (1)) is amended further by

22 inserting ‘‘or the Secretary of Homeland Security’’

23 after ‘‘the Attorney General’’ each place it appears.

24 (c) EFFECTIVE DATES.—

25 (1) IN GENERAL.—The amendment made by—
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1 (A) subsection (a)(1) shall apply to individ2 uals with respect to whom the Commissioner of

3 Social Security receives a removal notice after

4 the date of the enactment of this Act;

5 (B) subsection (a)(2) shall apply with re6 spect to notifications of removals received by the

7 Commissioner of Social Security after the date of

8 enactment of this Act; and

9 (C) subsection (a)(3) shall be effective as if

10 enacted on March 1, 1991.

11 (2) SUBSEQUENT CORRECTION OF CROSS-REF12 ERENCE AND TERMINOLOGY.—The amendments made

13 by subsections (a)(4) and (b)(1) shall be effective as

14 if enacted on April 1, 1997.

15 (3) REFERENCES TO THE SECRETARY OF HOME16 LAND SECURITY.—The amendment made by sub17 section (b)(2) shall be effective as if enacted on March

18 1, 2003.

19 SEC. 413. REINSTATEMENT OF CERTAIN REPORTING RE20 QUIREMENTS.

21 Section 3003(a)(1) of the Federal Reports Elimination

22 and Sunset Act of 1995 (31 U.S.C. 1113 note) shall not

23 apply to any report required to be submitted under any

24 of the following provisions of law:
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1 (1)(A) Section 201(c)(2) of the Social Security

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

3 (B) Section 1817(b)(2) of the Social Security Act

4 (42 U.S.C. 1395i(b)(2)).

5 (C) Section 1841(b)(2) of the Social Security Act

6 (42 U.S.C. 1395t(b)(2)).

7 (2)(A) Section 221(c)(3)(C) of the Social Secu8 rity Act (42 U.S.C. 421(c)(3)(C)).

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

10 (42 U.S.C. 421(i)(3)).

11 SEC. 414. CLARIFICATION OF DEFINITIONS REGARDING

12 CERTAIN SURVIVOR BENEFITS.

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

14 Act (42 U.S.C. 416(c)) is amended—

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

16 of clause (6) as subclauses (i) through (iii), respec17 tively;

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

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

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

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

22 was married’’;

23 (4) by inserting ‘‘(1)’’ after ‘‘(c)’’; and

24 (5) by adding at the end the following:
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1 ‘‘(2) The requirements of paragraph (1)(E) in connec2 tion with the surviving wife of an individual shall be treat3 ed as satisfied if—

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

5 the individual’s marriage to the surviving wife,

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

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

8 mental incompetence or similar incapacity,

9 ‘‘(C) during the period of the prior wife’s insti10 tutionalization, the individual would have divorced

11 the prior wife and married the surviving wife, but the

12 individual did not do so because such divorce would

13 have been unlawful, by reason of the prior wife’s in14 stitutionalization, under the laws of the State in

15 which the individual was domiciled at the time (as

16 determined based on evidence satisfactory to the Com17 missioner of Social Security),

18 ‘‘(D) the prior wife continued to remain institu19 tionalized up to the time of her death, and

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

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

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

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

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

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

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

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

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

8 married’’;

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

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

11 ‘‘(2) The requirements of paragraph (1)(E) in connec12 tion with the surviving husband of an individual shall be

13 treated as satisfied if—

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

15 the individual’s marriage to the surviving husband,

16 ‘‘(B) the prior husband was institutionalized

17 during the individual’s marriage to the prior husband

18 due to mental incompetence or similar incapacity,

19 ‘‘(C) during the period of the prior husband’s in20 stitutionalization, the individual would have divorced

21 the prior husband and married the surviving hus22 band, but the individual did not do so because such

23 divorce would have been unlawful, by reason of the

24 prior husband’s institutionalization, under the laws

25 of the State in which the individual was domiciled at
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1 the time (as determined based on evidence satisfactory

2 to the Commissioner of Social Security),

3 ‘‘(D) the prior husband continued to remain in4 stitutionalized up to the time of his death, and

5 ‘‘(E) the individual married the surviving hus6 band within 60 days after the prior husband’s

7 death.’’.

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

9 such Act (42 U.S.C. 416(k)) is amended by striking ‘‘clause

10 (5) of subsection (c) or clause (5) of subsection (g)’’ and

11 inserting ‘‘clause (E) of subsection (c)(1) or clause (E) of

12 subsection (g)(1)’’.

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

14 section shall be effective with respect to applications for ben15 efits under title II of the Social Security Act filed during

16 months ending after the date of the enactment of this Act.

17 SEC. 415. CLARIFICATION RESPECTING THE FICA AND SECA

18 TAX EXEMPTIONS FOR AN INDIVIDUAL

19 WHOSE EARNINGS ARE SUBJECT TO THE

20 LAWS OF A TOTALIZATION AGREEMENT PART21 NER.

22 Sections 1401(c), 3101(c), and 3111(c) of the Internal

23 Revenue Code of 1986 are each amended by striking ‘‘to

24 taxes or contributions for similar purposes under’’ and in25 serting ‘‘exclusively to the laws applicable to’’.
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1 SEC. 416. COVERAGE UNDER DIVIDED RETIREMENT SYSTEM

2 FOR PUBLIC EMPLOYEES IN KENTUCKY AND

3 LOUISIANA.

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

5 Security Act (42 U.S.C. 418(d)(6)(C)) is amended by in6 serting ‘‘Kentucky, Louisiana,’’ after ‘‘Illinois,’’.

7 (b) EFFECTIVE DATE.—The amendment made by sub8 section (a) takes effect on January 1, 2003.

9 SEC. 417. COMPENSATION FOR THE SOCIAL SECURITY ADVI10 SORY BOARD.

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

12 Social Security Act (42 U.S.C. 903(f)) is amended to read

13 as follows:

14 ‘‘Compensation, Expenses, and Per Diem

15 ‘‘(f) A member of the Board shall, for each day (includ16 ing traveltime) during which the member is attending meet17 ings or conferences of the Board or otherwise engaged in

18 the business of the Board, be compensated at the daily rate

19 of basic pay for level IV of the Executive Schedule. While

20 serving on business of the Board away from their homes

21 or regular places of business, members may be allowed trav22 el expenses, including per diem in lieu of subsistence, as

23 authorized by section 5703 of title 5, United States Code,

24 for persons in the Government employed intermittently.’’.

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

26 section shall be effective as of January 1, 2003.
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1 SEC. 418. 60-MONTH PERIOD OF EMPLOYMENT REQUIRE2 MENT FOR APPLICATION OF GOVERNMENT

3 PENSION OFFSET EXEMPTION.

4 (a) IN GENERAL.—Section 202(k) of the Social Secu5 rity Act (42 U.S.C. 402(k)) is amended by adding at the

6 end the following:

7 ‘‘(5)(A) The amount of a monthly insurance benefit

8 of any individual for each month under subsection (b), (c),

9 (e), (f), or (g) (as determined after application of the provi10 sions of subsection (q) and the preceding provisions of this

11 subsection) shall be reduced (but not below zero) by an

12 amount equal to two-thirds of the amount of any monthly

13 periodic benefit payable to such individual for such month

14 which is based upon such individual’s earnings while in

15 the service of the Federal Government or any State (or po16 litical subdivision thereof, as defined in section 218(b)(2))

17 if, during any portion of the last 60 months of such service

18 ending with the last day such individual was employed by

19 such entity—

20 ‘‘(i) such service did not constitute ‘employment’

21 as defined in section 210, or

22 ‘‘(ii) such service was being performed while in

23 the service of the Federal Government, and constituted

24 ‘employment’ as so defined solely by reason of—

25 ‘‘(I) clause (ii) or (iii) of subparagraph (G)

26 of section 210(a)(5), where the lump-sum pay-
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1 ment described in such clause (ii) or the ces2 sation of coverage described in such clause (iii)

3 (whichever is applicable) was received or oc4 curred on or after January 1, 1988, or

5 ‘‘(II) an election to become subject to the

6 Federal Employees’ Retirement System provided

7 in chapter 84 of title 5, United States Code, or

8 the Foreign Service Pension System provided in

9 subchapter II of chapter 8 of title I of the For10 eign Service Act of 1980 made pursuant to law

11 after December 31, 1987,

12 unless subparagraph (B) applies.

13 The amount of the reduction in any benefit under this sub14 paragraph, if not a multiple of $0.10, shall be rounded to

15 the next higher multiple of $0.10.

16 ‘‘(B)(i) Subparagraph (A)(i) shall not apply with re17 spect to monthly periodic benefits based wholly on service

18 as a member of a uniformed service (as defined in section

19 210(m)).

20 ‘‘(ii) Subparagraph (A)(ii) shall not apply with re21 spect to monthly periodic benefits based in whole or in part

22 on service which constituted ‘employment’ as defined in sec23 tion 210 if such service was performed for at least 60

24 months in the aggregate during the period beginning Janu25 ary 1, 1988, and ending with the close of the first calendar
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1 month as of the end of which such individual is eligible

2 for benefits under this subsection and has made a valid ap3 plication for such benefits.

4 ‘‘(C) For purposes of this paragraph, any periodic ben5 efit which otherwise meets the requirements of subpara6 graph (A), but which is paid on other than a monthly basis,

7 shall be allocated on a basis equivalent to a monthly benefit

8 (as determined by the Commissioner of Social Security)

9 and such equivalent monthly benefit shall constitute a

10 monthly periodic benefit for purposes of subparagraph (A).

11 For purposes of this subparagraph, the term ‘periodic ben12 efit’ includes a benefit payable in a lump sum if it is a

13 commutation of, or a substitute for, periodic payments.’’.

14 (b) CONFORMING AMENDMENTS.—

15 (1) WIFE’S INSURANCE BENEFITS.—Section

16 202(b) of the Social Security Act (42 U.S.C. 402(b))

17 is amended—

18 (A) in paragraph (2), by striking ‘‘sub19 section (q) and paragraph (4) of this subsection’’

20 and inserting ‘‘subsections (k)(5) and (q)’’; and

21 (B) by striking paragraph (4) and redesig22 nating paragraph (5) as paragraph (4).

23 (2) HUSBAND’S INSURANCE BENEFITS.—Section

24 202(c) of the Social Security Act (42 U.S.C. 402(c))

25 is amended—
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1 (A) by striking paragraph (2) and redesig2 nating paragraphs (3) through (5) as para3 graphs (2) through (4), respectively; and

4 (B) in paragraph (2) as so redesignated, by

5 striking ‘‘subsection (q) and paragraph (2) of

6 this subsection’’ and inserting ‘‘subsections (k)(5)

7 and (q)’’.

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

9 202(e) of the Social Security Act (42 U.S.C. 402(e))

10 is amended—

11 (A) in paragraph (2)(A), by striking ‘‘sub12 section (q), paragraph (7) of this subsection,’’

13 and inserting ‘‘subsection (k)(5), subsection (q),’’;

14 and

15 (B) by striking paragraph (7) and redesig16 nating paragraphs (8) and (9) as paragraphs

17 (7) and (8), respectively.

18 (4) WIDOWER’S INSURANCE BENEFITS.—

19 (A) IN GENERAL.—Section 202(f) of the So20 cial Security Act (42 U.S.C. 402(f)) is

21 amended—

22 (i) by striking paragraph (2) and re23 designating paragraphs (3) through (9) as

24 paragraphs (2) through (8), respectively;

25 and
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1 (ii) in paragraph (2) as so redesig2 nated, by striking ‘‘subsection (q), para3 graph (2) of this subsection,’’ and inserting

4 ‘‘subsection (k)(5), subsection (q),’’.

5 (B) CONFORMING AMENDMENTS.—

6 (i) Section 202(f)(1)(B) of the Social

7 Security Act (42 U.S.C. 402(f)(1)(B)) is

8 amended by striking ‘‘paragraph (5)’’ and

9 inserting ‘‘paragraph (4)’’.

10 (ii) Section 202(f)(1)(F) of the Social

11 Security Act (42 U.S.C. 402(f)(1)(F)) is

12 amended by striking ‘‘paragraph (6)’’ and

13 ‘‘paragraph (5)’’ (in clauses (i) and (ii))

14 and inserting ‘‘paragraph (5)’’ and ‘‘para15 graph (4)’’, respectively.

16 (iii) Section 202(f)(5)(A)(ii) of the So17 cial Security Act (as redesignated by sub18 paragraph (A)(i)) is amended by striking

19 ‘‘paragraph (5)’’ and inserting ‘‘paragraph

20 (4)’’.

21 (iv) Section 202(k)(2)(B) of the Social

22 Security Act (42 U.S.C. 402(k)(2)(B)) is

23 amended by striking ‘‘or (f)(4)’’ each place

24 it appears and inserting ‘‘or (f)(3)’’.
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1 (v) Section 202(k)(3)(A) of the Social

2 Security Act (42 U.S.C. 402(k)(3)(A)) is

3 amended by striking ‘‘or (f)(3)’’ and insert4 ing ‘‘or (f)(2)’’.

5 (vi) Section 202(k)(3)(B) of the Social

6 Security Act (42 U.S.C. 402(k)(3)(B)) is

7 amended by striking ‘‘or (f)(4)’’ and insert8 ing ‘‘or (f)(3)’’.

9 (vii) Section 226(e)(1)(A)(i) of the So10 cial Security Act (42 U.S.C.

11 426(e)(1)(A)(i)) is amended by striking

12 ‘‘and 202(f)(5)’’ and inserting ‘‘and

13 202(f)(4)’’.

14 (5) MOTHER’S AND FATHER’S INSURANCE BENE15 FITS.—Section 202(g) of the Social Security Act (42

16 U.S.C. 402(g)) is amended—

17 (A) in paragraph (2), by striking ‘‘Except

18 as provided in paragraph (4) of this subsection,

19 such’’ and inserting ‘‘Such’’; and

20 (B) by striking paragraph (4).

21 (c) EFFECTIVE DATE AND TRANSITIONAL RULE.—

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

23 this section shall apply with respect to applications

24 for benefits under title II of the Social Security Act

25 filed on or after the first day of the first month that
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1 begins after the date of enactment of this Act, except

2 that such amendments shall not apply in connection

3 with monthly periodic benefits of any individual

4 based on earnings while in service described in section

5 202(k)(5)(A) of the Social Security Act (in the matter

6 preceding clause (i) thereof) if the last day of such

7 service occurs before July 1, 2004.

8 (2) TRANSITIONAL RULE.—In the case of any in9 dividual whose last day of service described in sub10 paragraph (A) of section 202(k)(5) of the Social Secu11 rity Act (as added by subsection (a) of this section)

12 occurs within 5 years after the date of enactment of

13 this Act—

14 (A) the 60-month period described in such

15 subparagraph (A) shall be reduced (but not to

16 less than 1 month) by the number of months of

17 such service (in the aggregate and without regard

18 to whether such months of service were contin19 uous) which—

20 (i) were performed by the individual

21 under the same retirement system on or be22 fore the date of enactment of this Act, and

23 (ii) constituted ‘‘employment’’ as de24 fined in section 210 of the Social Security

25 Act; and
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1 (B) months of service necessary to fulfill the

2 60-month period as reduced by subparagraph

3 (A) of this paragraph must be performed after

4 the date of enactment of this Act.

5 SEC. 419. DISCLOSURE TO WORKERS OF EFFECT OF WIND6 FALL ELIMINATION PROVISION AND GOVERN7 MENT PENSION OFFSET PROVISION.

8 (a) INCLUSION OF NONCOVERED EMPLOYEES AS ELI9 GIBLE INDIVIDUALS ENTITLED TO SOCIAL SECURITY AC10 COUNT STATEMENTS.—Section 1143(a)(3) of the Social Se11 curity Act (42 U.S.C. 1320b–13(a)(3)) is amended—

12 (1) by striking ‘‘who’’ after ‘‘an individual’’ and

13 inserting ‘‘who’’ before ‘‘has’’ in each of subpara14 graphs (A) and (B);

15 (2) by inserting ‘‘(i) who’’ after ‘‘(C)’’; and

16 (3) by inserting before the period the following:

17 ‘‘, or (ii) with respect to whom the Commissioner has

18 information that the pattern of wages or self-employ19 ment income indicate a likelihood of noncovered em20 ployment’’.

21 (b) EXPLANATION IN SOCIAL SECURITY ACCOUNT

22 STATEMENTS OF POSSIBLE EFFECTS OF PERIODIC BENE23 FITS UNDER STATE AND LOCAL RETIREMENT SYSTEMS ON

24 SOCIAL SECURITY BENEFITS.—Section 1143(a)(2) of the
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1 Social Security Act (42 U.S.C. 1320b–13(a)(2)) is

2 amended—

3 (1) in subparagraph (C), by striking ‘‘and’’ at

4 the end;

5 (2) in subparagraph (D), by striking the period

6 and inserting ‘‘; and’’; and

7 (3) by adding at the end the following:

8 ‘‘(E) in the case of an eligible individual de9 scribed in paragraph (3)(C)(ii), an explanation, in

10 language calculated to be understood by the average

11 eligible individual, of the operation of the provisions

12 under sections 202(k)(5) and 215(a)(7) and an expla13 nation of the maximum potential effects of such pro14 visions on the eligible individual’s monthly retire15 ment, survivor, and auxiliary benefits.’’.

16 (c) TRUTH IN RETIREMENT DISCLOSURE TO GOVERN17 MENTAL EMPLOYEES OF EFFECT OF NONCOVERED EM18 PLOYMENT ON BENEFITS UNDER TITLE II.—Section 1143

19 of the Social Security Act (42 U.S..C. 1320b–13) is amend20 ed further by adding at the end the following:

21 ‘‘Disclosure to Governmental Employees of Effect of

22 Noncovered Employment

23 ‘‘(d)(1) In the case of any individual commencing em24 ployment on or after January 1, 2005, in any agency or

25 instrumentality of any State (or political subdivision there-
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1 of, as defined in section 218(b)(2)) in a position in which

2 service performed by the individual does not constitute ‘em3 ployment’ as defined in section 210, the head of the agency

4 or instrumentality shall ensure that, prior to the date of

5 the commencement of the individual’s employment in the

6 position, the individual is provided a written notice setting

7 forth an explanation, in language calculated to be under8 stood by the average individual, of the maximum effect on

9 computations of primary insurance amounts (under section

10 215(a)(7)) and the effect on benefit amounts (under section

11 202(k)(5)) of monthly periodic payments or benefits pay12 able based on earnings derived in such service. Such notice

13 shall be in a form which shall be prescribed by the Commis14 sioner of Social Security.

15 ‘‘(2) The written notice provided to an individual pur16 suant to paragraph (1) shall include a form which, upon

17 completion and signature by the individual, would con18 stitute certification by the individual of receipt of the no19 tice. The agency or instrumentality providing the notice to

20 the individual shall require that the form be completed and

21 signed by the individual and submitted to the agency or

22 instrumentality and to the pension, annuity, retirement, or

23 similar fund or system established by the governmental en24 tity involved responsible for paying the monthly periodic
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1 payments or benefits, before commencement of service with

2 the agency or instrumentality.’’.

3 (d) EFFECTIVE DATES.—The amendments made by

4 subsections (a) and (b) of this section shall apply with re5 spect to social security account statements issued on or after

6 January 1, 2007.

7 SEC. 420. POST-1956 MILITARY WAGE CREDITS.

8 (a) PAYMENT TO THE SOCIAL SECURITY TRUST

9 FUNDS IN SATISFACTION OF OUTSTANDING OBLIGA10 TIONS.—Section 201 of the Social Security Act (42 U.S.C.

11 401) is amended by adding at the end the following:

12 ‘‘(n) Not later than July 1, 2004, the Secretary of the

13 Treasury shall transfer, from amounts in the general fund

14 of the Treasury that are not otherwise appropriated—

15 ‘‘(1) $624,971,854 to the Federal Old-Age and

16 Survivors Insurance Trust Fund;

17 ‘‘(2) $105,379,671 to the Federal Disability In18 surance Trust Fund; and

19 ‘‘(3) $173,306,134 to the Federal Hospital Insur20 ance Trust Fund.

21 Amounts transferred in accordance with this subsection

22 shall be in satisfaction of certain outstanding obligations

23 for deemed wage credits for 2000 and 2001.’’.

24 (b) CONFORMING AMENDMENTS.—
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1 (1) REPEAL OF AUTHORITY FOR ANNUAL APPRO2 PRIATIONS AND RELATED ADJUSTMENTS TO COM3 PENSATE THE SOCIAL SECURITY TRUST FUND FOR

4 MILITARY WAGE CREDITS.—Section 229 of the Social

5 Security Act (42 U.S.C. 429) is amended—

6 (A) by striking ‘‘(a)’’; and

7 (B) by striking subsection (b).

8 (2) AMENDMENT TO REFLECT THE TERMINATION

9 OF WAGE CREDITS EFFECTIVE AFTER CALENDAR YEAR

10 2001 BY SECTION 8134 OF PUBLIC LAW 107–117.—Sec11 tion 229(a)(2) of the Social Security Act (42 U.S.C.

12 429(a)(2)), as amended by paragraph (1), is amended

13 by inserting ‘‘and before 2002’’ after ‘‘1977’’.

14 SEC. 420A. ELIMINATION OF DISINCENTIVE TO RETURN-TO15 WORK FOR CHILDHOOD DISABILITY BENE16 FICIARIES.

17 (a) IN GENERAL.—Section 202(d)(6)(B) of the Social

18 Security Act (42 U.S.C. 402(d)(6)(B)) is amended—

19 (1) by inserting ‘‘(i)’’ after ‘‘began’’; and

20 (2) by adding after ‘‘such disability,’’ the fol21 lowing: ‘‘or (ii) after the close of the 84th month fol22 lowing the month in which his most recent entitle23 ment to child’s insurance benefits terminated because

24 he ceased to be under such disability due to perform25 ance of substantial gainful activity,’’.
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1 (b) EFFECTIVE DATE.—The amendments made by sub2 section (a) shall be effective with respect to benefits payable

3 for months beginning with the 7th month that begins after

4 the date of enactment of this Act.

5 Subtitle C—Technical Amendments

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

8 Section 1143 of the Social Security Act (42

9 U.S.C. 1320b–13) is amended—

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

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

14 it appears and inserting ‘‘Commissioner’’.

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

17 (a) IN GENERAL.—Section 211(a)(7) of the Social Se18 curity Act (42 U.S.C. 411(a)(7)) is amended by inserting

19 ‘‘, but shall not include in any such net earnings from self20 employment the rental value of any parsonage or any par21 sonage allowance (whether or not excluded under section

22 107 of the Internal Revenue Code of 1986) provided after

23 the individual retires, or any other retirement benefit re24 ceived by such individual from a church plan (as defined
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1 in section 414(e) of such Code) after the individual retires’’

2 before the semicolon.

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

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

5 December 31, 1994.

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

8 (a) AMENDMENT TO INTERNAL REVENUE CODE.—Sec9 tion 3121(a)(7)(B) of the Internal Revenue Code of 1986

10 is amended by striking ‘‘described in subsection (g)(5)’’ and

11 inserting ‘‘on a farm operated for profit’’.

12 (b) AMENDMENT TO SOCIAL SECURITY ACT.—Section

13 209(a)(6)(B) of the Social Security Act (42

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

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

16 profit’’.

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

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

19 U.S.C. 410(f)(5)) are amended by striking ‘‘or is domestic

20 service in a private home of the employer’’.

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

23 (a) CORRECTION OF CITATION RESPECTING THE TAX

24 DEDUCTION RELATING TO HEALTH INSURANCE COSTS OF

25 SELF-EMPLOYED INDIVIDUALS.—Section 211(a)(15) of the
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1 Social Security Act (42 U.S.C. 411(a)(15)) is amended by

2 striking ‘‘section 162(m)’’ and inserting ‘‘section 162(l)’’.

3 (b) ELIMINATION OF REFERENCE TO OBSOLETE 20-

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

5 Internal Revenue Code of 1986 is amended by striking ‘‘and

6 the employee has not performed agricultural labor for the

7 employer on 20 days or more in the calendar year for cash

8 remuneration computed on a time basis’’.

9 SEC. 425. TECHNICAL CORRECTION RESPECTING SELF-EM10 PLOYMENT INCOME IN COMMUNITY PROP11 ERTY STATES.

12 (a) SOCIAL SECURITY ACT AMENDMENT.—Section

13 211(a)(5)(A) of the Social Security Act (42

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

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

16 income and deductions attributable to such trade or busi17 ness shall be treated as the gross income and deductions

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

19 trade or business is jointly operated, treated as the gross

20 income and deductions of each spouse on the basis of their

21 respective distributive share of the gross income and deduc22 tions;’’.

23 (b) INTERNAL REVENUE CODE OF 1986 AMEND24 MENT.—Section 1402(a)(5)(A) of the Internal Revenue

25 Code of 1986 is amended by striking ‘‘all of the gross in-
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1 come’’ and all that follows and inserting ‘‘the gross income

2 and deductions attributable to such trade or business shall

3 be treated as the gross income and deductions of the spouse

4 carrying on such trade or business or, if such trade or busi5 ness is jointly operated, treated as the gross income and

6 deductions of each spouse on the basis of their respective

7 distributive share of the gross income and deductions; and’’.

8 SEC. 426. TECHNICAL AMENDMENTS TO THE RAILROAD RE9 TIREMENT AND SURVIVORS’ IMPROVEMENT

10 ACT OF 2001.

11 (a) QUORUM RULES.—Section 15(j)(7) of the Railroad

12 Retirement Act of 1974 (45 U.S.C. 231n(j)(7)) is amended

13 by striking ‘‘entire Board of Trustees’’ and inserting

14 ‘‘Trustees then holding office’’.

15 (b) POWERS OF THE BOARD OF TRUSTEES.—Section

16 15(j)(4) of the Railroad Retirement Act of 1974 (45 U.S.C.

17 231n(j)(4)) is amended to read as follows:

18 ‘‘(4) POWERS OF THE BOARD OF TRUSTEES.—

19 The Board of Trustees shall—

20 ‘‘(A) retain independent advisers to assist it

21 in the formulation and adoption of its invest22 ment guidelines;

23 ‘‘(B) invest assets of the Trust in a manner

24 consistent with such investment guidelines, either
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1 directly or through the retention of independent

2 investment managers;

3 ‘‘(C) adopt bylaws and other rules to govern

4 its operations;

5 ‘‘(D) employ professional staff, and contract

6 with outside advisers, including the Railroad Re7 tirement Board, to provide legal, accounting, in8 vestment advisory or management services (com9 pensation for which may be on a fixed contract

10 fee basis or on such other terms as are customary

11 for such services), or other services necessary for

12 the proper administration of the Trust;

13 ‘‘(E) sue and be sued and participate in

14 legal proceedings, have and use a seal, conduct

15 business, carry on operations, and exercise its

16 powers within or without the District of Colum17 bia, form, own, or participate in entities of any

18 kind, enter into contracts and agreements nec19 essary to carry out its business purposes, lend

20 money for such purposes, and deal with property

21 as security for the payment of funds so loaned,

22 and possess and exercise any other powers ap23 propriate to carry out the purposes of the Trust;

24 ‘‘(F) pay administrative expenses of the

25 Trust from the assets of the Trust; and
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1 ‘‘(G) transfer money to the disbursing agent

2 or as otherwise provided in section 7(b)(4), to

3 pay benefits payable under this Act from the as4 sets of the Trust.’’.

5 (c) STATE AND LOCAL TAXES.—Section 15(j)(6) of the

6 Railroad Retirement Act of 1974 (45 U.S.C. 231n(j)(6)) is

7 amended to read as follows:

8 ‘‘(6) STATE AND LOCAL TAXES.—The Trust shall

9 be exempt from any income, sales, use, property, or

10 other similar tax or fee imposed or levied by a State,

11 political subdivision, or local taxing authority. The

12 district courts of the United States shall have original

13 jurisdiction over a civil action brought by the Trust

14 to enforce this subsection and may grant equitable or

15 declaratory relief requested by the Trust.’’.

16 (d) FUNDING.—Section 15(j)(8) of the Railroad Re17 tirement Act of 1974 (45 U.S.C. 231n(j)(8)) is repealed.

18 (e) TRANSFERS.—Section 15A(d)(2) of the Railroad

19 Retirement Act of 1974 (45 U.S.C. 231n–1(d)(2)) is

20 amended—

21 (1) by inserting ‘‘or the Railroad Retirement Ac22 count’’ after ‘‘National Railroad Retirement Invest23 ment Trust’’ the second place it appears;
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1 (2) by inserting ‘‘or the Railroad Retirement

2 Board’’ after ‘‘National Railroad Retirement Invest3 ment Trust’’ the third place it appears;

4 (3) by inserting ‘‘(either directly or through a

5 commingled account consisting only of such obliga6 tions)’’ after ‘‘United States’’ the first place it ap7 pears; and

8 (4) in the third sentence, by inserting before the

9 period at the end the following: ‘‘or to purchase such

10 additional obligations’’.

11 (f) CLERICAL AMENDMENTS.—Section 15(j)(5) of the

12 Railroad Retirement Act of 1974 (45 U.S.C. 231n(j)(5)) is

13 amended—

14 (1) in subparagraph (B), by striking ‘‘trustee’s’’

15 each place it appears and inserting ‘‘Trustee’s’’;

16 (2) in subparagraph (C), by striking ‘‘trustee’’

17 and ‘‘trustees’’ each place it appears and inserting

18 ‘‘Trustee’’ and ‘‘Trustees’’, respectively; and

19 (3) in the matter preceding clause (i) of subpara20 graph (D), by striking ‘‘trustee’’ and inserting

21 ‘‘Trustee’’.
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1 Subtitle D—Amendments Related to

2 Title XVI

3 SEC. 430. EXCLUSION FROM INCOME FOR CERTAIN INFRE4 QUENT OR IRREGULAR INCOME AND CERTAIN

5 INTEREST OR DIVIDEND INCOME.

6 (a) INFREQUENT OR IRREGULAR INCOME.—Section

7 1612(b)(3) of the Social Security Act (42 U.S.C.

8 1382a(b)(3)) is amended to read as follows—

9 ‘‘(3) in any calendar quarter, the first—

10 ‘‘(A) $60 of unearned income, and

11 ‘‘(B) $30 of earned income,

12 of such individual (and such spouse, if any) which,

13 as determined in accordance with criteria prescribed

14 by the Commissioner of Social Security, is received

15 too infrequently or irregularly to be included;’’.

16 (b) INTEREST OR DIVIDEND INCOME.—Section

17 1612(b) of the Social Security Act (42 U.S.C. 1382a(b)) is

18 amended—

19 (1) in paragraph (21), by striking ‘‘and’’ at the

20 end;

21 (2) in paragraph (22), by striking the period

22 and inserting ‘‘; and’’; and

23 (3) by adding at the end the following:

24 ‘‘(23) interest or dividend income from

25 resources—
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1 ‘‘(A) not excluded under section 1613(a), or

2 ‘‘(B) excluded pursuant to Federal law

3 other than section 1613(a).’’.

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

5 section shall be effective with respect to benefits payable for

6 months in calendar quarters that begin more than 90 days

7 after the date of the enactment of this Act.

8 SEC. 431. UNIFORM 9-MONTH RESOURCE EXCLUSION PERI9 ODS.

10 (a) UNDERPAYMENTS OF BENEFITS.—Section

11 1613(a)(7) of the Social Security Act (42 U.S.C.

12 1382b(a)(7)) is amended—

13 (1) by striking ‘‘6’’ and inserting ‘‘9’’; and

14 (2) by striking ‘‘(or to the first 9 months fol15 lowing such month with respect to any amount so re16 ceived during the period beginning October 1, 1987,

17 and ending September 30, 1989)’’.

18 (b) ADVANCEABLE TAX CREDITS.—Section

19 1613(a)(11) of the Social Security Act (42 U.S.C.

20 1382b(a)(11)) is amended to read as follows:

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

22 month in which received—

23 ‘‘(A) notwithstanding section 203 of the

24 Economic Growth and Tax Relief Reconciliation

25 Act of 2001, any refund of Federal income taxes
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1 made to such individual (or such spouse) under

2 section 24 of the Internal Revenue Code of 1986

3 (relating to child tax credit) by reason of sub4 section (d) thereof; and

5 ‘‘(B) any refund of Federal income taxes

6 made to such individual (or such spouse) by rea7 son of section 32 of the Internal Revenue Code

8 of 1986 (relating to earned income tax credit),

9 and any payment made to such individual (or

10 such spouse) by an employer under section 3507

11 of such Code (relating to advance payment of

12 earned income credit);’’.

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

14 section shall take effect on the date of enactment of this Act,

15 and shall apply to amounts described in paragraph (7) of

16 section 1613(a) of the Social Security Act and refunds of

17 Federal income taxes described in paragraph (11) of such

18 section, that are received by an eligible individual or eligi19 ble spouse on or after such date.

20 SEC. 432. ELIMINATION OF CERTAIN RESTRICTIONS ON THE

21 APPLICATION OF THE STUDENT EARNED IN22 COME EXCLUSION.

23 (a) IN GENERAL.—Section 1612(b)(1) of the Social Se24 curity Act (42 U.S.C. 1382a(b)(1)) is amended by striking

25 ‘‘a child who’’ and inserting ‘‘under the age of 22 and’’.
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1 (b) EFFECTIVE DATE.—The amendment made by this

2 section shall be effective with respect to benefits payable for

3 months that begin on or after 1 year after the date of enact4 ment of this Act.

5 SEC. 433. EXCEPTION TO RETROSPECTIVE MONTHLY AC6 COUNTING FOR NONRECURRING INCOME.

7 (a) IN GENERAL.—Section 1611(c) of the Social Secu8 rity Act (42 U.S.C. 1382(c)) is amended by adding at the

9 end the following:

10 ‘‘(9)(A) Notwithstanding paragraphs (1) and (2), any

11 nonrecurring income which is paid to an individual in the

12 first month of any period of eligibility shall be taken into

13 account in determining the amount of the benefit under this

14 title of such individual (and his eligible spouse, if any) only

15 for that month, and shall not be taken into account in deter16 mining the amount of the benefit for any other month.

17 ‘‘(B) For purposes of subparagraph (A), payments to

18 an individual in varying amounts from the same or similar

19 source for the same or similar purpose shall not be consid20 ered to be nonrecurring income.’’.

21 (b) DELETION OF OBSOLETE MATERIAL.—Section

22 1611(c)(2)(B) of the Social Security Act (42 U.S.C.

23 1382(c)(2)(B)) is amended to read as follows:

24 ‘‘(B) in the case of the first month following a

25 period of ineligibility in which eligibility is restored
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1 after the first day of such month, bear the same ratio

2 to the amount of the benefit which would have been

3 payable to such individual if eligibility had been re4 stored on the first day of such month as the number

5 of days in such month including and following the

6 date of restoration of eligibility bears to the total

7 number of days in such month.’’.

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

9 section shall be effective with respect to benefits payable for

10 months that begin on or after 1 year after the date of enact11 ment of this Act.

12 SEC. 434. REMOVAL OF RESTRICTION ON PAYMENT OF BEN13 EFITS TO CHILDREN WHO ARE BORN OR WHO

14 BECOME BLIND OR DISABLED AFTER THEIR

15 MILITARY PARENTS ARE STATIONED OVER16 SEAS.

17 (a) IN GENERAL.—Section 1614(a)(1)(B)(ii) of the So18 cial Security Act (42 U.S.C. 1382c(a)(1)(B)(ii)) is

19 amended—

20 (1) by inserting ‘‘and’’ after ‘‘citizen of the

21 United States,’’; and

22 (2) by striking ‘‘, and who,’’ and all that follows

23 and inserting a period.

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

25 section shall be effective with respect to benefits payable for
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1 months beginning after the date of enactment of this Act,

2 but only on the basis of an application filed after such date.

3 SEC. 435. TREATMENT OF EDUCATION-RELATED INCOME

4 AND RESOURCES.

5 (a) EXCLUSION FROM INCOME OF GIFTS PROVIDED

6 FOR TUITION AND OTHER EDUCATION-RELATED FEES.—

7 Section 1612(b)(7) of the Social Security Act (42 U.S.C.

8 1382a(b)(7)) is amended by striking ‘‘or fellowship received

9 for use in paying’’ and inserting ‘‘fellowship, or gift (or

10 portion of a gift) used to pay’’.

11 (b) EXCLUSION FROM RESOURCES FOR 9 MONTHS OF

12 GRANTS, SCHOLARSHIPS, FELLOWSHIPS, OR GIFTS PRO13 VIDED FOR TUITION AND OTHER EDUCATION-RELATED

14 FEES.—Section 1613(a) of the Social Security Act (42

15 U.S.C. 1382b(a)) (as amended by section 101(c)(2)) is

16 amended—

17 (1) in paragraph (13), by striking ‘‘and’’ at the

18 end;

19 (2) in paragraph (14), by striking the period

20 and inserting ‘‘; and’’; and

21 (3) by inserting after paragraph (14) the fol22 lowing:

23 ‘‘(15) for the 9-month period beginning after the

24 month in which received, any grant, scholarship, fel25 lowship, or gift (or portion of a gift) used to pay the
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1 cost of tuition and fees at any educational (including

2 technical or vocational education) institution.’’.

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

4 section shall apply to benefits payable for months that begin

5 more than 90 days after the date of enactment of this Act.

6 SEC. 436. MONTHLY TREATMENT OF UNIFORMED SERVICE

7 COMPENSATION.

8 (a) TREATMENT OF PAY AS RECEIVED WHEN

9 EARNED.—Section 1611(c) of the Social Security Act (42

10 U.S.C. 1382(c)), as amended by section 435(a), is amended

11 by adding at the end the following:

12 ‘‘(10) For purposes of this subsection, remuneration for

13 service performed as a member of a uniformed service may

14 be treated as received in the month in which it was earned,

15 if the Commissioner of Social Security determines that such

16 treatment would promote the economical and efficient ad17 ministration of the program authorized by this title.’’.

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

19 section shall apply to benefits payable for months that begin

20 more than 90 days after the date of enactment of this Act.

Attest:

Secretary.
108TH CONGRESS

1ST SESSION H. R. 743

AMENDMENT