Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Total Overhaul of To-
talization Agreements Law of 2007’’. 
SEC. 2. RESTRICTION OF TOTALIZATION AGREEMENTS TO 
PROVIDING FOR APPROPRIATE EXCHANGE 
OF SOCIAL SECURITY TAXES OR CONTRIBU-
TIONS. 
(a) IN GENERAL.—Section 233(c)(1) of the Social 
Security Act (42 U.S.C. 433(c)(1)) is amended— 
(1) in subsection (a), by striking ‘‘for the pur-
poses of’’ and all that follows and inserting the fol-
lowing: ‘‘for the purposes of providing appropriate 
exchange between the parties to such agreements of 
taxes or contributions paid under their respective so-
cial security systems, as provided in subsection 
(c)(1).’’; and 
(2) by striking subsection (c)(1) and inserting 
the following: 
‘‘(c)(1) Any agreement establishing a totalization ar-
rangement pursuant to this section between the United 
States and another country shall provide that— 
‘‘(A) in any case in which— 
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‘‘(i) an individual who is a citizen or na-
tional of the other country or lawfully admitted 
to the other country for permanent residence in 
the other country becomes entitled to cash ben-
efits under the social security system of the 
other country, and 
‘‘(ii) such individual (or, in the case of a 
survivor or derivative benefit, the individual on 
whose contributions such benefits are based) 
has been credited with at least 6 quarters of 
coverage as defined in section 213 based on 
wages paid for services performed in the United 
States or self-employment income derived in the 
United States, 
the Secretary of the Treasury shall transfer from the 
Federal Old-Age and Survivors Insurance Trust 
Fund and the Federal Disability Insurance Trust 
Fund to the other country amounts appropriated to 
each such Trust Fund under section 201 in connec-
tion with taxes under chapters 2 and 21 of the In-
ternal Revenue Code of 1986 paid in connection with 
such wages and self-employment income, and 
‘‘(B) in any case in which— 
‘‘(i) an individual who is a citizen or na-
tional of the United States or lawfully admitted 
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for permanent residence in the United States 
becomes entitled to cash benefits under this 
title, and 
‘‘(ii) such individual (or, in the case of a 
survivor or derivative benefit, the individual on 
whose wages and self-employment income such 
benefits are based) has been credited with a pe-
riod of coverage under the social security sys-
tem of the other country, based on service per-
formed, or earnings derived, in the other coun-
try, equivalent (under the terms of the agree-
ment) to 6 quarters of coverage as defined in 
section 213, 
the other country shall pay to the United States an 
amount equivalent to any taxes or other contribu-
tions paid by the credited individual described in 
clause (ii) or such individual’s employer to the social 
security system of the other country, based on such 
service or earnings, as required under the social se-
curity system of the other country.’’. 
(b) CONFORMING AMENDMENT.—Section 233(c)(3) 
of such Act is amended to read as follows: 
‘‘(3) Any such agreement shall provide for the ex-
change of such information between the parties to the 
agreement as is necessary to provide for the transfers be-
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tween the parties under paragraph (1). The Secretary of 
the Treasury and the Commissioner of Social Security 
shall exchange such information as is necessary to enable 
the Secretary of the Treasury to carry out any transfers 
referred to in paragraph (1)(A).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to agreements becom-
ing effective on or after January 1, 2007. 
SEC. 3. LIMITATIONS ON COVERAGE OF INDIVIDUALS 
BASED ON EARNINGS BY INDIVIDUALS IN 
THE UNITED STATES WHILE SUCH INDIVID-
UALS WERE NOT CITIZENS, NATIONALS, OR 
LAWFUL PERMANENT RESIDENTS OF THE 
UNITED STATES AND WERE NOT AUTHOR-
IZED TO BE EMPLOYED IN THE UNITED 
STATES. 
(a) IN GENERAL.—Section 215(e) of the Social Secu-
rity Act (42 U.S.C. 415(e)) is amended— 
(1) by redesignating paragraphs (1) and (2) as 
subparagraphs (A) and (B), respectively; 
(2) by inserting ‘‘(1)’’ after ‘‘(e)’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(2) For purposes of subsections (b) and (d), in com-
puting an individual’s average indexed monthly earnings 
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(or in the case of an individual whose primary insurance 
amount is computed under section 215(a) as in effect 
prior to January 1979, average monthly wage), such indi-
vidual shall not be credited with any wages paid to such 
individual for services performed in the United States, or 
any self-employment income derived by such individual in 
the United States, if such services were performed, or such 
self-employment income was derived, while such individual 
was neither a citizen or national of the United States nor 
lawfully admitted for permanent residence in the United 
States and was not authorized to be employed in the 
United States.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply with respect to wages paid, and 
self-employment income derived, before, on, or after the 
date of the enactment of this Act. Notwithstanding section 
215(f)(1) of the Social Security Act (42 U.S.C. 415(f)(1)), 
as soon as practicable after the date of the enactment of 
this Act, the Commissioner of Social Security shall recom-
pute all primary insurance amounts to the extent nec-
essary to carry out such amendments. Such amendments 
shall affect benefits only for months after the date of the 
enactment of this Act. 
Æ 
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