(2)(A) Section 221(c)(3)(C) of the Social Secu-
rity Act (42 U.S.C. 421(c)(3)(C)). 
(B) Section 221(i)(3) of the Social Security Act 
(42 U.S.C. 421(i)(3)). 
SEC. 414. CLARIFICATION OF DEFINITIONS REGARDING 
CERTAIN SURVIVOR BENEFITS. 
(a) WIDOWS.—Section 216(c) of the Social Security 
Act (42 U.S.C. 416(c)) is amended—
(1) by redesignating subclauses (A) through (C) 
of clause (6) as subclauses (i) through (iii), respec-
tively; 
(2) by redesignating clauses (1) through (6) as 
clauses (A) through (F), respectively; 
(3) in clause (E) (as redesignated), by inserting 
‘‘except as provided in paragraph (2),’’ before ‘‘she 
was married’’; 
(4) by inserting ‘‘(1)’’ after ‘‘(c)’’; and 
(5) by adding at the end the following new para-
graph: 
‘‘(2) The requirements of paragraph (1)(E) in connec-
tion with the surviving wife of an individual shall be treat-
ed as satisfied if—
‘‘(A) the individual had been married prior to 
the individual’s marriage to the surviving wife,
‘‘(B) the prior wife was institutionalized during 
the individual’s marriage to the prior wife due to 
mental incompetence or similar incapacity, 
‘‘(C) during the period of the prior wife’s insti-
tutionalization, the individual would have divorced 
the prior wife and married the surviving wife, but the 
individual did not do so because such divorce would 
have been unlawful, by reason of the prior wife’s in-
stitutionalization, under the laws of the State in 
which the individual was domiciled at the time (as 
determined based on evidence satisfactory to the Com-
missioner of Social Security), 
‘‘(D) the prior wife continued to remain institu-
tionalized up to the time of her death, and 
‘‘(E) the individual married the surviving wife 
within 60 days after the prior wife’s death.’’. 
(b) WIDOWERS.—Section 216(g) of such Act (42 
U.S.C. 416(g)) is amended—
(1) by redesignating subclauses (A) through (C) 
of clause (6) as subclauses (i) through (iii), respec-
tively; 
(2) by redesignating clauses (1) through (6) as 
clauses (A) through (F), respectively;
(3) in clause (E) (as redesignated), by inserting 
‘‘except as provided in paragraph (2),’’ before ‘‘he was 
married’’; 
(4) by inserting ‘‘(1)’’ after ‘‘(g)’’; and 
(5) by adding at the end the following new para-
graph: 
‘‘(2) The requirements of paragraph (1)(E) in connec-
tion with the surviving husband of an individual shall be 
treated as satisfied if—
‘‘(A) the individual had been married prior to 
the individual’s marriage to the surviving husband, 
‘‘(B) the prior husband was institutionalized 
during the individual’s marriage to the prior husband 
due to mental incompetence or similar incapacity, 
‘‘(C) during the period of the prior husband’s in-
stitutionalization, the individual would have divorced 
the prior husband and married the surviving hus-
band, but the individual did not do so because such 
divorce would have been unlawful, by reason of the 
prior husband’s institutionalization, under the laws 
of the State in which the individual was domiciled at 
the time (as determined based on evidence satisfactory 
to the Commissioner of Social Security), 
‘‘(D) the prior husband continued to remain in-
stitutionalized up to the time of his death, and
‘‘(E) the individual married the surviving hus-
band within 60 days after the prior husband’s 
death.’’. 
(c) CONFORMING AMENDMENT.—Section 216(k) of 
such Act (42 U.S.C. 416(k)) is amended by striking ‘‘clause 
(5) of subsection (c) or clause (5) of subsection (g)’’ and 
inserting ‘‘clause (E) of subsection (c)(1) or clause (E) of 
subsection (g)(1)’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall be effective with respect to applications for ben-
efits under title II of the Social Security Act filed during 
months ending after the date of the enactment of this Act. 
SEC. 415. CLARIFICATION RESPECTING THE FICA AND SECA 
TAX 
EXEMPTIONS 
FOR 
AN 
INDIVIDUAL 
WHOSE EARNINGS ARE SUBJECT TO THE 
LAWS OF A TOTALIZATION AGREEMENT PART-
NER. 
Sections 1401(c), 3101(c), and 3111(c) of the Internal 
Revenue Code of 1986 are each amended by striking ‘‘to 
taxes or contributions for similar purposes under’’ and in-
serting ‘‘exclusively to the laws applicable to’’.
SEC. 416. COVERAGE UNDER DIVIDED RETIREMENT SYSTEM 
FOR PUBLIC EMPLOYEES IN KENTUCKY. 
(a) IN GENERAL.—Section 218(d)(6)(C) of the Social 
Security Act (42 U.S.C. 418(d)(6)(C)) is amended by in-
serting ‘‘Kentucky,’’ after ‘‘Illinois,’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) takes effect on January 1, 2003. 
SEC. 417. COMPENSATION FOR THE SOCIAL SECURITY ADVI-
SORY BOARD. 
(a) IN GENERAL.—Subsection (f) of section 703 of the 
Social Security Act (42 U.S.C. 903(f)) is amended to read 
as follows: 
‘‘Compensation, Expenses, and Per Diem 
‘‘(f) A member of the Board shall, for each day (includ-
ing traveltime) during which the member is attending meet-
ings or conferences of the Board or otherwise engaged in 
the business of the Board, be compensated at the daily rate 
of basic pay for level IV of the Executive Schedule. While 
serving on business of the Board away from their homes 
or regular places of business, members may be allowed trav-
el expenses, including per diem in lieu of subsistence, as 
authorized by section 5703 of title 5, United States Code, 
for persons in the Government employed intermittently.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall be effective as of January 1, 2003.