108TH CONGRESS

1ST SESSION H. R. 743

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 representativepayees, to enhance program protections, and forother purposes.

108TH CONGRESS

1ST SESSION H. R. 743

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

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

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

5 ‘‘Social Security Protection Act of 2003’’.

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

7 as follows:

Sec. 1. Short title and table of contents.

TITLE I—PROTECTION OF BENEFICIARIES

Subtitle A—Representative Payees

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

payees.

Sec. 102. Oversight of representative payees.

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

year or fleeing prosecution, custody, or confinement.

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

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

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

Subtitle B—Enforcement

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

by representative payees.

TITLE II—PROGRAM PROTECTIONS

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

of material facts.

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

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

confinement, and to persons violating probation or parole.

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

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

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

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

medicare.

Sec. 208. Disqualification from payment during trial work period upon conviction of fraudulent concealment of work activity.
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Sec. 209. Authority for judicial orders of restitution.

TITLE III—ATTORNEY FEE PAYMENT SYSTEM IMPROVEMENTS

Sec. 301. Cap on attorney assessments.

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

TITLE IV—MISCELLANEOUS AND TECHNICAL AMENDMENTS

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

Incentives Improvement Act of 1999

Sec. 401. Application of demonstration authority sunset date to new projects.

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

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

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

individuals.

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

Subtitle B—Miscellaneous Amendments

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

to the claimant.

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

Sec. 413. Reinstatement of certain reporting requirements.

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

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

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

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

Kentucky.

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

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

Subtitle C—Technical Amendments

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

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

Sec. 423. Technical corrections relating to domestic employment.

Sec. 424. Technical corrections of outdated references.

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

property States.
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1 TITLE I—PROTECTION OF

2 BENEFICIARIES

3 Subtitle A—Representative Payees

4 SEC. 101. AUTHORITY TO REISSUE BENEFITS MISUSED BY

5 ORGANIZATIONAL REPRESENTATIVE PAYEES.

6 (a) TITLE II AMENDMENTS.—

7 (1) REISSUANCE OF BENEFITS.—Section

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

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

10 first sentence the following new sentences: ‘‘In any

11 case in which a 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,

18 title VIII, title XVI, or any combination of such ti19 tles;

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

21 representative payee, the Commissioner of Social Security

22 shall certify for payment to the beneficiary or the bene23 ficiary’s alternative representative payee an amount equal

24 to the amount of such benefit so misused. The provisions
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1 of this paragraph are subject to the limitations of para2 graph (7)(B).’’.

3 (2) MISUSE OF BENEFITS DEFINED.—Section

4 205(j) of such Act (42 U.S.C. 405(j)) is amended

5 by adding at the end the following new paragraph:

6 ‘‘(8) For purposes of this subsection, misuse of bene7 fits by a representative payee occurs in any case in which

8 the representative payee receives payment under this title

9 for the use and benefit of another person and converts

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

11 for the use and benefit of such other person. The Commis12 sioner of Social Security may prescribe by regulation the

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

14 paragraph.’’.

15 (b) TITLE VIII AMENDMENTS.—

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

17 of the Social Security Act (42 U.S.C. 1007(i)) (as

18 amended by section 209(b)(1) of this Act) is amend19 ed further by inserting after the first sentence the

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

21 representative payee that—

22 ‘‘(A) is not an individual; or

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

24 during a period when misuse occurs, serves 15

25 or more individuals who are beneficiaries under
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1 this title, title II, title XVI, or any combination

2 of such titles;

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

4 such representative payee, the Commissioner of So5 cial Security shall pay to the beneficiary or the bene6 ficiary’s alternative representative payee an amount

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

8 provisions of this paragraph are subject to the limi9 tations of subsection (l)(2).’’.

10 (2) MISUSE OF BENEFITS DEFINED.—Section

11 807 of such Act (42 U.S.C. 1007) is amended by

12 adding at the end the following new subsection:

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

14 title, misuse of benefits by a representative payee occurs

15 in any case in which the representative payee receives pay16 ment under this title for the use and benefit of another

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

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

19 of such person. The Commissioner of Social Security may

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

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

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

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

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

25 and inserting ‘‘for his or her use and benefit’’.
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1 (c) TITLE XVI AMENDMENTS.—

2 (1) REISSUANCE OF BENEFITS.—Section

3 1631(a)(2)(E) of such Act (42

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

5 after the first sentence the following new sentences:

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

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

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

9 subparagraph (D)(ii)); or

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

11 a period when misuse occurs, serves 15 or more indi12 viduals who are beneficiaries under this title, title II,

13 title VIII, or any combination of such titles;

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

15 representative payee, the Commissioner of Social Security

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

17 representative payee an amount equal to the amount of

18 the benefit so misused. The provisions of this subpara19 graph are subject to the limitations of subparagraph

20 (H)(ii).’’.

21 (2) EXCLUSION OF REISSUED BENEFITS FROM

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

23 U.S.C. 1382b(a)) is amended—

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

25 at the end;
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1 (B) in paragraph (13), by striking the pe2 riod and inserting ‘‘; and’’; and

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

4 following new paragraph:

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

6 the month in which received, any amount received by

7 such individual (or spouse) or any other person

8 whose income is deemed to be included in such indi9 vidual’s (or spouse’s) income for purposes of this

10 title as restitution for benefits under this title, title

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

12 individual (or spouse) or such other person under

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

14 (3) MISUSE OF BENEFITS DEFINED.—Section

15 1631(a)(2)(A) of such Act (42

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

17 end the following new clause:

18 ‘‘(iv) For purposes of this paragraph, misuse of bene19 fits by a representative payee occurs in any case in which

20 the representative payee receives payment under this title

21 for the use and benefit of another person and converts

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

23 for the use and benefit of such other person. The Commis24 sioner of Social Security may prescribe by regulation the
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1 meaning of the term ‘use and benefit’ for purposes of this

2 clause.’’.

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

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

5 a representative payee with respect to which the Commis6 sioner makes the determination of misuse on or after Jan7 uary 1, 1995.

8 SEC. 102. OVERSIGHT OF REPRESENTATIVE PAYEES.

9 (a) CERTIFICATION OF BONDING AND LICENSING

10 REQUIREMENTS FOR NONGOVERNMENTAL ORGANIZA11 TIONAL REPRESENTATIVE PAYEES.—

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

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

14 amended—

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

16 community-based nonprofit social service agen17 cy licensed or bonded by the State’’ in sub18 clause (I) and inserting ‘‘a certified community19 based nonprofit social service agency (as de20 fined in paragraph (9))’’;

21 (B) in paragraph (3)(F), by striking ‘‘com22 munity-based nonprofit social service agencies’’

23 and inserting ‘‘certified community-based non24 profit social service agencies (as defined in

25 paragraph (9))’’;
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1 (C) in paragraph (4)(B), by striking ‘‘any

2 community-based nonprofit social service agen3 cy which is bonded or licensed in each State in

4 which it serves as a representative payee’’ and

5 inserting ‘‘any certified community-based non6 profit social service agency (as defined in para7 graph (9))’’; and

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

9 added by section 101(a)(2) of this Act) the fol10 lowing new paragraph:

11 ‘‘(9) For purposes of this subsection, the term ‘cer12 tified community-based nonprofit social service agency’

13 means a community-based nonprofit social service agency

14 which is in compliance with requirements, under regula15 tions which shall be prescribed by the Commissioner, for

16 annual certification to the Commissioner that it is bonded

17 in accordance with requirements specified by the Commis18 sioner and that it is licensed in each State in which it

19 serves as a representative payee (if licensing is available

20 in such State) in accordance with requirements specified

21 by the Commissioner. Any such annual certification shall

22 include a copy of any independent audit on such agency

23 which may have been performed since the previous certifi24 cation.’’.
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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 de9 fined 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 ac17 cordance’’;

18 (ii) by redesignating items (aa) and

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

20 (and adjusting the margination accord21 ingly); and

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

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

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

25 subparagraph:
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1 ‘‘(I) For purposes of this paragraph, the term ‘cer2 tified community-based nonprofit social service agency’

3 means a community-based nonprofit social service agency

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

6 annual certification to the Commissioner that it is bonded

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

9 serves as a representative payee (if licensing is available

10 in the State) in accordance with requirements specified by

11 the Commissioner. Any such annual certification shall in12 clude a copy of any independent audit on the agency which

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

15 (3) EFFECTIVE DATE.—The amendments made

16 by this subsection shall take effect on the first day

17 of the thirteenth month beginning after the date of

18 the enactment of this Act.

19 (b) PERIODIC ONSITE REVIEW.—

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

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

22 read as follows:

23 ‘‘(6)(A) In addition to such other reviews of rep24 resentative payees as the Commissioner of Social Security

25 may otherwise conduct, the Commissioner shall provide for
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1 the periodic onsite review of any person or agency located

2 in the United States that receives the benefits payable

3 under this title (alone or in combination with benefits pay4 able under title VIII or title XVI) to another individual

5 pursuant to the appointment of such person or agency as

6 a representative payee under this subsection, section 807,

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

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

9 serves in that capacity with respect to 15 or more

10 such individuals;

11 ‘‘(ii) the representative payee is a certified com12 munity-based nonprofit social service agency (as de13 fined in paragraph (9) of this subsection or section

14 1631(a)(2)(I)); or

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

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

17 serves in that capacity with respect to 50 or more

18 such individuals.

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

20 year, the Commissioner 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 re23 sults of periodic onsite reviews conducted during the fiscal

24 year pursuant to subparagraph (A) and of any other re25 views of representative payees conducted during such fis-
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1 cal year in connection with benefits under this title. Each

2 such report shall describe in detail all problems identified

3 in such reviews and any corrective action taken or planned

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

5 ‘‘(i) the number of such reviews;

6 ‘‘(ii) the results of such reviews;

7 ‘‘(iii) the number of cases in which the rep8 resentative payee was changed and why;

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

10 of expedited, targeted oversight of the representative

11 payee by the Commissioner conducted upon receipt

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

13 vendor, or a similar irregularity;

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

15 there was a misuse of funds;

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

17 were dealt with by the Commissioner;

18 ‘‘(vii) the final disposition of such cases of mis19 use of funds, including any criminal penalties im20 posed; and

21 ‘‘(viii) such other information as the Commis22 sioner deems appropriate.’’.

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

24 such Act (as amended by section 101(b)(2) of this
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1 Act) is amended further by adding at the end the

2 following new subsection:

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

4 such other reviews of representative payees as the Com5 missioner of Social Security may otherwise conduct, the

6 Commissioner may provide for the periodic onsite review

7 of any person or agency that receives the benefits payable

8 under this title (alone or in combination with benefits pay9 able under title II or title XVI) to another individual pur10 suant to the appointment of such person or agency as a

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

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

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

14 serves in that capacity with respect to 15 or more

15 such individuals; or

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

17 serves in that capacity with respect to 50 or more

18 such individuals.

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

20 year, the Commissioner 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 re23 sults of periodic onsite reviews conducted during the fiscal

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

25 of representative payees conducted during such fiscal year
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1 in connection with benefits under this title. Each such re2 port shall describe in detail all problems identified in such

3 reviews and any corrective action taken or planned to be

4 taken to correct such problems, and shall include—

5 ‘‘(A) the number of such reviews;

6 ‘‘(B) the results of such reviews;

7 ‘‘(C) the number of cases in which the rep8 resentative payee was changed and why;

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

10 of expedited, targeted oversight of the representative

11 payee by the Commissioner conducted upon receipt

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

13 vendor, or a similar irregularity;

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

15 there was a misuse of funds;

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

17 were dealt with by the Commissioner;

18 ‘‘(G) the final disposition of such cases of mis19 use of funds, including any criminal penalties im20 posed; and

21 ‘‘(H) such other information as the Commis22 sioner deems appropriate.’’.

23 (3) TITLE XVI AMENDMENT.—Section

24 1631(a)(2)(G) of such Act (42
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1 U.S.C. 1383(a)(2)(G)) is amended to read as fol2 lows:

3 ‘‘(G)(i) In addition to such other reviews of rep4 resentative payees as the Commissioner of Social Security

5 may otherwise conduct, the Commissioner shall provide for

6 the periodic onsite review of any person or agency that

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

8 combination with benefits payable under title II or title

9 VIII) to another individual pursuant to the appointment

10 of the person or agency as a representative payee under

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

12 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

17 community-based nonprofit social service agency (as

18 defined in subparagraph (I) of this paragraph or

19 section 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

25 year, the Commissioner shall submit to the Committee on
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1 Ways and Means of the House of Representatives and the

2 Committee on Finance of the Senate a report on the re3 sults of periodic onsite reviews conducted during the fiscal

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

5 representative payees conducted during such fiscal year in

6 connection with benefits under this title. Each such report

7 shall describe in detail all problems identified in the re8 views and any corrective action taken or planned to be

9 taken to correct 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

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

18 vendor, 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

22 were dealt with by the Commissioner;

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

24 misuse 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

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

11 amended—

12 (1) in subparagraph (B)(i)—

13 (A) by striking ‘‘and’’ at the end of sub14 clause (III);

15 (B) by redesignating subclause (IV) as

16 subclause (VI); and

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

18 following new subclauses:

19 ‘‘(IV) obtain information concerning whether

20 such person has been convicted of any other offense

21 under Federal or State law which resulted in impris22 onment for more than 1 year,

23 ‘‘(V) obtain information concerning whether

24 such person is a person described in section

25 202(x)(1)(A)(iv), and’’;
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1 (2) in subparagraph (B), by adding at the end

2 the following new clause:

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

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

8 or local law enforcement officer, upon the written request

9 of the officer, with the current address, social security ac10 count number, and photograph (if applicable) of any per11 son investigated under this paragraph, if the officer fur12 nishes the Commissioner with the name of such person

13 and such other identifying information as may reasonably

14 be required by the Commissioner to establish the unique

15 identity of such person, and notifies the Commissioner

16 that—

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

18 202(x)(1)(A)(iv),

19 ‘‘(II) such person has information that is nec20 essary for the officer to conduct the officer’s official

21 duties, and

22 ‘‘(III) the location or apprehension of such per23 son is within the officer’s official duties.’’;

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

25 ‘‘subparagraph (B)(i)(IV),,’’ and inserting ‘‘subpara-
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1 graph (B)(i)(VI)’’ and 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 sub6 clause (II);

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

8 subclause (III) and inserting a comma; and

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

10 subclauses:

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

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

13 Commissioner determines that such certification

14 would be appropriate notwithstanding such convic15 tion, or

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

17 202(x)(1)(A)(iv).’’.

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

19 Act (42 U.S.C. 1007) is amended—

20 (1) in subsection (b)(2)—

21 (A) by striking ‘‘and’’ at the end of sub22 paragraph (C);

23 (B) by redesignating subparagraph (D) as

24 subparagraph (F); and
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1 (C) by inserting after subparagraph (C)

2 the following new subparagraphs:

3 ‘‘(D) obtain information concerning wheth4 er such person has been convicted of any other

5 offense under Federal or State law which re6 sulted in imprisonment for more than 1 year;

7 ‘‘(E) obtain information concerning wheth8 er such person is a person described in section

9 804(a)(2); and’’;

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

11 following new paragraph:

12 ‘‘(3) Notwithstanding the provisions of section

13 552a of title 5, United States Code, or any other

14 provision of Federal or State law (other than section

15 6103 of the Internal Revenue Code of 1986 and sec16 tion 1106(c) of this Act), the Commissioner shall

17 furnish any Federal, State, or local law enforcement

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

19 the current address, social security account number,

20 and photograph (if applicable) of any person inves21 tigated under this subsection, if the officer furnishes

22 the Commissioner with the name of such person and

23 such other identifying information as may reason24 ably be required by the Commissioner to establish
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1 the unique identity of such person, and notifies the

2 Commissioner that—

3 ‘‘(A) such person is described in section

4 804(a)(2),

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

6 necessary for the officer to conduct the officer’s

7 official duties, and

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

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

10 and

11 (3) in subsection (d)(1)—

12 (A) by striking ‘‘or’’ at the end of subpara13 graph (B);

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

15 subparagraph (C) and inserting a semicolon;

16 and

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

18 subparagraphs:

19 ‘‘(D) such person has previously been con20 victed as described in subsection (b)(2)(D), un21 less the Commissioner determines that such

22 payment would be appropriate notwithstanding

23 such conviction; or

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

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

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

3 amended—

4 (1) in clause (ii)—

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

7 (B) by redesignating subclause (IV) as

8 subclause (VI); and

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

10 following new subclauses:

11 ‘‘(IV) obtain information concerning whether

12 the person has been convicted of any other offense

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

15 ‘‘(V) obtain information concerning whether

16 such person is a person described in section

17 1611(e)(4)(A); and’’;

18 (2) in clause (iii)(II)—

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

21 (B) by striking ‘‘section

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

23 205(j)(2)(B)(i)(VI)’’;

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

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

4 subclause (III) and inserting a semicolon; and

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

6 subclauses:

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

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

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

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

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

15 clause:

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

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

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

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

21 or local law enforcement officer, upon the written request

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

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

2 be required by the Commissioner to establish the unique

3 identity of such person, and notifies the Commissioner

4 that—

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

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

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

9 duties, and

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

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

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

15 of this Act.

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

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

19 a report evaluating whether the existing procedures and

20 reviews for the qualification (including disqualification) of

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

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

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

3 report any recommendations that the Commissioner con4 siders appropriate.

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

6 BY REPRESENTATIVE PAYEES.

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

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

9 amended—

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

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

12 a’’; and

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

14 Secretary’’ and inserting the following:

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

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

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

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

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

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

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

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

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

6 a’’; and

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

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

9 qualified organization may not collect a fee from an

10 individual for any month with respect to which the

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

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

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

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

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

21 which the Commissioner of Social Security or a court of

22 competent jurisdiction makes the determination of misuse

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

2 MISUSED BENEFITS.

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

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

5 sections 101 and 102) is amended further—

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

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

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

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

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

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

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

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

19 benefit that was paid to such representative payee under

20 this subsection, the representative payee shall be liable for

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

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

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

25 pertaining to the recovery of such overpayments. Subject

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

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

4 payee.

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

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

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

9 the total benefit amount misused by the representative

10 payee with respect to such individual.’’.

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

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

13 by adding at the end the following new subsection:

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

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

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

20 that was paid to such representative payee under

21 this section, the representative payee shall be liable

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

23 extent not repaid by the representative payee) shall

24 be treated as an overpayment of benefits under this

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

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

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

4 Commissioner shall make payment of an amount

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

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

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

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

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

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

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

19 and

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

21 the following:

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

23 court of competent jurisdiction determines that a rep24 resentative payee that is not a Federal, State, or local gov25 ernment agency has misused all or part of an individual’s
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1 benefit that was paid to the representative payee under

2 this paragraph, the representative payee shall be liable for

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

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

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

7 pertaining to the recovery of the overpayments. Subject

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

9 amount, the Commissioner shall make payment of an

10 amount equal to the recovered amount to such individual

11 or such individual’s alternative representative payee.

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

13 or such individual’s alternative representative payee under

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

15 may not exceed the total benefit amount misused by the

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

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

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

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

2 PAYMENTS WHEN A REPRESENTATIVE PAYEE

3 FAILS TO PROVIDE REQUIRED ACCOUNTING.

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

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

7 (1) by redesignating subparagraphs (E) and

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

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

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

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

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

15 the Commissioner may, after furnishing notice to such

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

18 of the Social Security Administration serving the area in

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

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

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

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

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

25 (2) by inserting after paragraph (2) the fol26 lowing new paragraph:
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1 ‘‘(3) AUTHORITY TO REDIRECT DELIVERY OF

2 BENEFIT PAYMENTS WHEN A REPRESENTATIVE

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

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

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

9 may, after furnishing notice to such person and the

10 qualified individual, require that such person appear

11 in person at a United States Government facility

12 designated by the Social Security Administration as

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

15 (c) TITLE XVI AMENDMENT.—Section

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

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

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

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

20 fails to submit a report required by the Commissioner of

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

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

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

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

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

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

5 the enactment of this Act.

6 Subtitle B—Enforcement

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

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

12 the end the following new paragraph:

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

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

15 capacity of a representative payee pursuant to section

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

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

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

20 use and benefit of such other individual shall be subject

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

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

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

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

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

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

6 TITLE II—PROGRAM

7 PROTECTIONS

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

11 (a) TREATMENT OF WITHHOLDING OF MATERIAL

12 FACTS.—

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

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

15 is amended—

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

17 and inserting ‘‘who—’’;

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

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

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

24 amount of monthly insurance benefits under title II

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

2 misleading,

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

4 for such use with knowing disregard for the truth,

5 or

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

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

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

10 right to or the amount of monthly insurance benefits

11 under title II or benefits or payments under title

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

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

15 such disclosure is misleading,

16 shall be subject to,’’;

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

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

20 or representation’’ in the first sentence;

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

23 ‘‘because of such statement or representation’’

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

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

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

6 U.S.C. 1320a–8a(a)) is amended—

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

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

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

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

15 amount of monthly insurance benefits under title II

16 or benefits or payments under title XVI that the

17 person knows or should know is false or misleading,

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

19 for such use with knowing disregard for the truth,

20 or

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

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

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

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

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

3 statement or representation with such omission is

4 false or misleading or that the withholding of such

5 disclosure is misleading,

6 shall be subject to,’’.

7 (b) CLARIFICATION OF TREATMENT OF RECOVERED

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

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

10 case of amounts recovered arising out of a determination

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

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

13 (c) CONFORMING AMENDMENTS.—

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

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

16 ‘‘charging fraud or false statements’’.

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

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

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

20 actions’’.

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

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

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

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

5 202.

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

9 OR EARNINGS STATUS OF DISABLED BENE10 FICIARIES.

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

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

13 time as the Commissioner of Social Security implements

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

17 or earnings status, the Commissioner shall issue a receipt

18 to the disabled beneficiary (or representative) each time

19 he or she submits documentation, or otherwise reports to

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

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

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

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

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

12 ‘‘or’’ at the end;

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

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

16 following:

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

18 or confinement after conviction, under the laws of

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

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

21 under the laws of the place from which the person

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

24 State, or

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

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

4 withheld benefits to the individual.’’; and

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

6 following new subparagraph:

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

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

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

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

12 or local law enforcement officer, upon the written request

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

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

15 under this title, if the officer furnishes the Commissioner

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

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

20 ‘‘(i) the beneficiary—

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

22 paragraph (1)(A); and

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

24 the officer to conduct the officer’s official du25 ties; and
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1 ‘‘(ii) the location or apprehension of the bene2 ficiary is within the officer’s official duties.’’.

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

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

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

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

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

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

10 (as amended by subsection (a)).

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

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

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

14 after the date of the enactment of this Act.

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

17 AVAILABLE WITHOUT CHARGE FROM THE SO18 CIAL SECURITY ADMINISTRATION.

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

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

22 following new paragraph:

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

24 individual to obtain a product or service that the person

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

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

3 whom the offer is tendered a notice that—

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

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

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

10 legibility.

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

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

13 connection with a claim arising under title II, title

14 VIII, or title XVI; or

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

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

17 title XVI.’’; and

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

19 OF MISUSE OF SYMBOLS, EMBLEMS, OR NAMES IN

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

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

23 this section shall apply to offers of assistance made after

24 the sixth month ending after the Commissioner of Social

25 Security promulgates final regulations prescribing the
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1 standards applicable to the notice required to be provided

2 in connection with such offer. The Commissioner shall

3 promulgate such final regulations within 1 year after the

4 date of the enactment of this Act.

5 SEC. 205. REFUSAL TO RECOGNIZE CERTAIN INDIVIDUALS

6 AS CLAIMANT REPRESENTATIVES.

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

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

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

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

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

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

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

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

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

23 Social Security Administration as a result of collecting or

24 receiving a fee in excess of the amount authorized shall

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

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

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

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

7 SECURITY ACT.

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

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

10 1129A the following new section:

11 ‘‘ATTEMPTS TO INTERFERE WITH ADMINISTRATION OF

12 SOCIAL SECURITY ACT

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

18 ‘‘ ‘HCFA’,’’;

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

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

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

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

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

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

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

5 the date of the enactment of this Act.

6 SEC. 208. DISQUALIFICATION FROM PAYMENT DURING

7 TRIAL WORK PERIOD UPON CONVICTION OF

8 FRAUDULENT CONCEALMENT OF WORK AC9 TIVITY.

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

12 end the following new paragraph:

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

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

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

20 as to the amount thereof;

21 ‘‘(B) receiving disability insurance benefits

22 under this title while engaging in work activity

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

3 a greater amount than is due or when no payment

4 is authorized,

5 no benefit shall be payable to such individual under this

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

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

9 to which the fraudulently concealed work activity occurred,

10 and amounts otherwise due under this title as restitution,

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

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

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

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

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

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

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

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

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

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

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

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

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

5 Social Security Administration.

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

7 United States Code, shall apply with respect to the

8 issuance and enforcement of orders of restitution under

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

10 Security Administration shall be considered the victim.

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

12 only partial restitution, under this subsection, the court

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

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

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

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

17 where’’ and inserting the following:

18 ‘‘(i) RESTITUTION.—

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

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

21 paragraph:

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

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

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

3 to the Social Security Administration.

4 ‘‘(B) RELATED PROVISIONS.—Sections

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

6 Code, shall apply with respect to the issuance

7 and enforcement of orders of restitution under

8 this paragraph. In so applying such sections,

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

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

13 restitution, or orders only partial restitution,

14 under this paragraph, the court shall state on

15 the record the reasons therefor.’’.

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

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

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

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

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

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

2 Social Security Administration.

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

4 United States Code, shall apply with respect to the

5 issuance and enforcement of orders of restitution under

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

7 Security Administration shall be considered the victim.

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

9 only partial restitution, under this subsection, the court

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

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

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

14 new paragraph:

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

16 amounts received by the Social Security Administration

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

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

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

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

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

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

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

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

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

5 be transferred to the Managing Trustee of the Federal

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

9 such amounts shall be deposited by the Managing Trustee

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

11 deposited by the Commissioner into the general fund of

12 the Treasury as miscellaneous receipts.’’.

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

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

15 violations occurring on or after the date of the enactment

16 of this Act.

17 TITLE III—ATTORNEY FEE PAY18 MENT SYSTEM IMPROVE19 MENTS

20 SEC. 301. CAP ON ATTORNEY ASSESSMENTS.

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

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

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

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

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

5 after the amendments made by section 301 of the

6 Social Security Protection Act of 2003 take effect,

7 the dollar amount specified in the preceding sentence

8 (including a previously adjusted amount) shall be

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

11 except such adjustment shall be based on the higher

12 of $75 or the previously adjusted amount that would

13 have been in effect for December of the preceding

14 year, but for the rounding of such amount pursuant

15 to the following sentence. Any amount so adjusted

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

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

18 $75.’’.

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

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

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

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

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

2 TO TITLE XVI CLAIMS.

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

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

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

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

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

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

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

13 and inserting ‘‘such section’’;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

5 ‘or certified for payment’; and

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

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

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

12 before any applicable reduction under section

13 1127(a))’.’’; and

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

15 the following new subparagraphs:

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

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

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

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

21 to the lesser of—

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

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

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

4 after any applicable reductions under sections

5 1631(g) and 1127(a).

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

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

8 pursuant to subparagraph (B), the Commissioner shall

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

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

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

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

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

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

20 take effect, the dollar amount specified in the preceding

21 sentence (including a previously adjusted amount) shall be

22 adjusted annually under the procedures used to adjust

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

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

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

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

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

5 in no case less than $75.

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

7 such percentage rate as the Commissioner determines is

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

9 determining and approving fees to attorneys from the

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

11 percent.

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

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

14 the amount of the fee otherwise required by subparagraph

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

16 benefits.

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

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

20 claimant whose claim gave rise to the assessment.

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

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

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

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

5 laws.’’.

6 (b) EFFECTIVE DATE.—

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

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

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

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

12 first month that begins after 270 days after the date

13 of the enactment of this Act.

14 (2) SUNSET.—Such amendments shall not

15 apply with respect to fees for representation of

16 claimants in the case of any claim for benefits with

17 respect to which the agreement for representation is

18 entered into after 5 years after the date on which

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

21 (c) STUDY REGARDING FEE-WITHHOLDING FOR

22 NON-ATTORNEY REPRESENTATIVES.—

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

24 date of the enactment of this Act, the Comptroller

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

3 Security Administration.

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

5 the study under this subsection, the Comptroller

6 General shall—

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

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

11 such fee approval, with regard to—

12 (i) their training, qualifications, and

13 competency,

14 (ii) the type and quality of services

15 provided, and

16 (iii) the extent to which claimants are

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

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

22 withholding procedures that apply under titles

23 II and XVI of the Social Security Act for the

24 payment of attorney fees, including the effect

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

2 date of the enactment of this Act, the Comptroller

3 General shall submit to the Committee on Ways and

4 Means of the House of Representatives and the

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

7 conducted pursuant to this subsection.

8 TITLE IV—MISCELLANEOUS AND

9 TECHNICAL AMENDMENTS

10 Subtitle A—Amendments Relating

11 to the Ticket to Work and Work

12 Incentives Improvement Act of

13 1999

14 SEC. 401. APPLICATION OF DEMONSTRATION AUTHORITY

15 SUNSET DATE TO NEW PROJECTS.

16 Section 234 of the Social Security Act (42

17 U.S.C. 434) is amended—

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

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

21 December 17, 2004’’; and

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

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

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

2 IN CONNECTION WITH DEMONSTRATION

3 PROJECTS PROVIDING FOR REDUCTIONS IN

4 DISABILITY INSURANCE BENEFITS BASED ON

5 EARNINGS.

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

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

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

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

11 relate to the program established under title II of such

12 Act,’’.

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

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

18 is amended to read as follows:

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

20 demonstration projects under this section shall be paid

21 from funds available for the administration of title II or

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

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

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

3 and the Federal Supplementary Medical Insurance Trust

4 Fund, as determined appropriate by the Secretary of

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

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

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

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

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

14 amended to read as follows:

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

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

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

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

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

2 212(b) of Public Law 93–66);

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

4 this Act, is considered to be receiving benefits

5 under title XVI of this Act; or

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

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

9 Act.’’.

10 (2) EFFECTIVE DATE.—The amendment made

11 by this subsection shall apply with respect to grants,

12 cooperative agreements, or contracts entered into on

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

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

16 (1) DEFINITION OF DISABLED BENEFICIARY.—

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

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

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

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

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

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

5 212(b) of Public Law 93–66);

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

7 this Act, is considered to be receiving benefits

8 under title XVI of this Act; or

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

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

12 Act.’’.

13 (2) ADVOCACY OR OTHER SERVICES NEEDED

14 TO MAINTAIN GAINFUL EMPLOYMENT.—Section

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

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

18 (3) EFFECTIVE DATE.—The amendments made

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

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

4 WORK AND SELF-SUFFICIENCY PROGRAM.

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

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

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

9 ‘‘An individual work plan established pursuant to

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

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

14 services approved under the Rehabilitation Act of

15 1973.’’.

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

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

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

20 Subtitle B—Miscellaneous

21 Amendments

22 SEC. 411. ELIMINATION OF TRANSCRIPT REQUIREMENT IN

23 REMAND CASES FULLY FAVORABLE TO THE

24 CLAIMANT.

25 (a) IN GENERAL.—Section 205(g) of the Social Secu26 rity Act (42 U.S.C. 405(g)) is amended in the sixth sen-
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1 tence by striking ‘‘and a transcript’’ and inserting ‘‘and,

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

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

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

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

7 enactment of this Act.

8 SEC. 412. NONPAYMENT OF BENEFITS UPON REMOVAL

9 FROM THE UNITED STATES.

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

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

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

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

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

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

17 the Attorney General after the date of the enactment of

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

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

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

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

2 under any of the following provisions of law:

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

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

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

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

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

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

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

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

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

13 SEC. 414. CLARIFICATION OF DEFINITIONS REGARDING

14 CERTAIN SURVIVOR BENEFITS.

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

16 Act (42 U.S.C. 416(c)) is amended—

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

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

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

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

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

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

24 was married’’;

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

2 paragraph:

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

5 treated as satisfied if—

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

7 the individual’s marriage to the surviving wife,

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

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

10 mental incompetence or similar incapacity,

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

13 the prior wife and married the surviving wife, but

14 the individual did not do so because such divorce

15 would have been unlawful, by reason of the prior

16 wife’s institutionalization, under the laws of the

17 State in which the individual was domiciled at the

18 time (as determined based on evidence satisfactory

19 to the Commissioner of Social Security),

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

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

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

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

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

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

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

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

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

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

8 was married’’;

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

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

11 paragraph:

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

14 be treated as satisfied if—

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

16 the individual’s marriage to the surviving husband,

17 ‘‘(B) the prior husband was institutionalized

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

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

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

24 husband, but the individual did not do so because

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

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

4 satisfactory to the Commissioner of Social Security),

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

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

9 death.’’.

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

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

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

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

14 clause (E) of subsection (g)(1)’’.

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

16 this section shall be effective with respect to applications

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

18 during months ending after the date of the enactment of

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

2 SECA TAX EXEMPTIONS FOR AN INDIVIDUAL

3 WHOSE EARNINGS ARE SUBJECT TO THE

4 LAWS OF A TOTALIZATION AGREEMENT

5 PARTNER.

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

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

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

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

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

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

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

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

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

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

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

21 read as follows:

22 ‘‘Compensation, Expenses, and Per Diem

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

25 meetings or conferences of the Board or otherwise engaged

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

2 While serving on business of the Board away from their

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

6 States Code, for persons in the Government employed

7 intermittently.’’.

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

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

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

12 PENSION OFFSET EXEMPTION.

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

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

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

17 service ending with’’.

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

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

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

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

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

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

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

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

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

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

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

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

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

9 service ending with’’.

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

11 this section shall apply with respect to applications for

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

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

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

15 amendments shall not apply in connection with monthly

16 periodic benefits of any individual based on earnings while

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

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

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

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

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

22 the enactment of this Act, or

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

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

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

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

3 service subsequently performed by such individual

4 has constituted such ‘‘employment’’.

5 Subtitle C—Technical Amendments

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

8 Section 1143 of the Social Security Act (42

9 U.S.C. 1320b–13) is amended—

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

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

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

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

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

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

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

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

23 after the individual retires, or any other retirement benefit

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

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

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

5 after December 31, 1994.

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

8 (a) AMENDMENT TO INTERNAL REVENUE CODE.—

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

10 1986 is amended by striking ‘‘described in subsection

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

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

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

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

16 for profit’’.

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

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

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

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

23 (a) CORRECTION OF TERMINOLOGY AND CITATIONS

24 RESPECTING REMOVAL FROM THE UNITED STATES.—

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

2 further—

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

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

6 and inserting ‘‘removed’’;

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

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

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

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

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

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

14 and Nationality Act (other than under paragraph

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

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

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

19 (5) in paragraph (3)—

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

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

22 section 237(a)(4)’’; and

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

2 and inserting ‘‘Removal’’.

3 (b) CORRECTION OF CITATION RESPECTING THE

4 TAX DEDUCTION RELATING TO HEALTH INSURANCE

5 COSTS OF SELF-EMPLOYED INDIVIDUALS.—Section

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

8 162(l)’’.

9 (c) ELIMINATION OF REFERENCE TO OBSOLETE 20-

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

11 the Internal Revenue Code of 1986 is amended by striking

12 ‘‘and the employee has not performed agricultural labor

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

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

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

18 (a) SOCIAL SECURITY ACT AMENDMENT.—Section

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

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

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

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

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

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

2 of their respective distributive share of the gross income

3 and deductions;’’.

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

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

8 and deductions attributable to such trade or business shall

9 be treated as the gross income and deductions of the

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

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

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

14 and’’.

Passed the House of Representatives April 2, 2003.

Attest:

Clerk.