HR 4070 RFS
sioner and that it is licensed in each State in which it
serves as a representative payee (if licensing is available
in the State) in accordance with requirements specified by
the Commissioner. Any such annual certification shall in-
clude a copy of any independent audit on the agency which
may have been performed since the previous certifi-
cation.’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall take effect on the first day
of the thirteenth month beginning after the date of
the enactment of this Act.
(b) PERIODIC ONSITE REVIEW.—
(1) TITLE II AMENDMENT.—Section 205(j)(6)
of such Act (42 U.S.C. 405(j)(6)) is amended to
read as follows:
‘‘(6)(A) In addition to such other reviews of rep-
resentative payees as the Commissioner of Social Security
may otherwise conduct, the Commissioner shall provide for
the periodic onsite review of any person or agency located
in the United States that receives the benefits payable
under this title (alone or in combination with benefits pay-
able under title VIII or title XVI) to another individual
pursuant to the appointment of such person or agency as
a representative payee under this subsection, section 807,
or section 1631(a)(2) in any case in which—
HR 4070 RFS
‘‘(i) the representative payee is a person who
serves in that capacity with respect to 15 or more
such individuals;
‘‘(ii) the representative payee is a certified com-
munity-based nonprofit social service agency (as de-
fined in paragraph (9) of this subsection or section
1631(a)(2)(I)); or
‘‘(iii) the representative payee is an agency
(other than an agency described in clause (ii)) that
serves in that capacity with respect to 50 or more
such individuals.
‘‘(B) Within 120 days after the end of each fiscal
year, the Commissioner shall submit to the Committee on
Ways and Means of the House of Representatives and the
Committee on Finance of the Senate a report on the re-
sults of periodic onsite reviews conducted during the fiscal
year pursuant to subparagraph (A) and of any other re-
views of representative payees conducted during such fis-
cal year in connection with benefits under this title. Each
such report shall describe in detail all problems identified
in such reviews and any corrective action taken or planned
to be taken to correct such problems, and shall include—
‘‘(i) the number of such reviews;
‘‘(ii) the results of such reviews;
HR 4070 RFS
‘‘(iii) the number of cases in which the rep-
resentative payee was changed and why;
‘‘(iv) the number of cases involving the exercise
of expedited, targeted oversight of the representative
payee by the Commissioner conducted upon receipt
of an allegation of misuse of funds, failure to pay a
vendor, or a similar irregularity;
‘‘(v) the number of cases discovered in which
there was a misuse of funds;
‘‘(vi) how any such cases of misuse of funds
were dealt with by the Commissioner;
‘‘(vii) the final disposition of such cases of mis-
use of funds, including any criminal penalties im-
posed; and
‘‘(viii) such other information as the Commis-
sioner deems appropriate.’’.
(2) TITLE VIII AMENDMENT.—Section 807 of
such Act (as amended by section 101(b)(2) of this
Act) is amended further by adding at the end the
following new subsection:
‘‘(k) PERIODIC ONSITE REVIEW.—(1) In addition to
such other reviews of representative payees as the Com-
missioner of Social Security may otherwise conduct, the
Commissioner may provide for the periodic onsite review
of any person or agency that receives the benefits payable
HR 4070 RFS
under this title (alone or in combination with benefits pay-
able under title II or title XVI) to another individual pur-
suant to the appointment of such person or agency as a
representative payee under this section, section 205(j), or
section 1631(a)(2) in any case in which—
‘‘(A) the representative payee is a person who
serves in that capacity with respect to 15 or more
such individuals; or
‘‘(B) the representative payee is an agency that
serves in that capacity with respect to 50 or more
such individuals.
‘‘(2) Within 120 days after the end of each fiscal
year, the Commissioner shall submit to the Committee on
Ways and Means of the House of Representatives and the
Committee on Finance of the Senate a report on the re-
sults of periodic onsite reviews conducted during the fiscal
year pursuant to paragraph (1) and of any other reviews
of representative payees conducted during such fiscal year
in connection with benefits under this title. Each such re-
port shall describe in detail all problems identified in such
reviews and any corrective action taken or planned to be
taken to correct such problems, and shall include—
‘‘(A) the number of such reviews;
‘‘(B) the results of such reviews;
HR 4070 RFS
‘‘(C) the number of cases in which the rep-
resentative payee was changed and why;
‘‘(D) the number of cases involving the exercise
of expedited, targeted oversight of the representative
payee by the Commissioner conducted upon receipt
of an allegation of misuse of funds, failure to pay a
vendor, or a similar irregularity;
‘‘(E) the number of cases discovered in which
there was a misuse of funds;
‘‘(F) how any such cases of misuse of funds
were dealt with by the Commissioner;
‘‘(G) the final disposition of such cases of mis-
use of funds, including any criminal penalties im-
posed; and
‘‘(H) such other information as the Commis-
sioner deems appropriate.’’.
(3) 
TITLE
XVI
AMENDMENT.—Section
1631(a)(2)(G) 
of 
such 
Act 
(42
U.S.C. 1383(a)(2)(G)) is amended to read as fol-
lows:
‘‘(G)(i) In addition to such other reviews of rep-
resentative payees as the Commissioner of Social Security
may otherwise conduct, the Commissioner shall provide for
the periodic onsite review of any person or agency that
receives the benefits payable under this title (alone or in
HR 4070 RFS
combination with benefits payable under title II or title
VIII) to another individual pursuant to the appointment
of the person or agency as a representative payee under
this paragraph, section 205(j), or section 807 in any case
in which—
‘‘(I) the representative payee is a person who
serves in that capacity with respect to 15 or more
such individuals;
‘‘(II) the representative payee is a certified
community-based nonprofit social service agency (as
defined in subparagraph (I) of this paragraph or
section 205(j)(9)); or
‘‘(III) the representative payee is an agency
(other than an agency described in subclause (II))
that serves in that capacity with respect to 50 or
more such individuals.
‘‘(ii) Within 120 days after the end of each fiscal
year, the Commissioner shall submit to the Committee on
Ways and Means of the House of Representatives and the
Committee on Finance of the Senate a report on the re-
sults of periodic onsite reviews conducted during the fiscal
year pursuant to clause (i) and of any other reviews of
representative payees conducted during such fiscal year in
connection with benefits under this title. Each such report
shall describe in detail all problems identified in the re-
HR 4070 RFS
views and any corrective action taken or planned to be
taken to correct the problems, and shall include—
‘‘(I) the number of the reviews;
‘‘(II) the results of such reviews;
‘‘(III) the number of cases in which the rep-
resentative payee was changed and why;
‘‘(IV) the number of cases involving the exercise
of expedited, targeted oversight of the representative
payee by the Commissioner conducted upon receipt
of an allegation of misuse of funds, failure to pay a
vendor, or a similar irregularity;
‘‘(V) the number of cases discovered in which
there was a misuse of funds;
‘‘(VI) how any such cases of misuse of funds
were dealt with by the Commissioner;
‘‘(VII) the final disposition of such cases of
misuse of funds, including any criminal penalties im-
posed; and
‘‘(VIII) such other information as the Commis-
sioner deems appropriate.’’.
HR 4070 RFS
SEC. 103. DISQUALIFICATION FROM SERVICE AS REP-
RESENTATIVE PAYEE UPON CONVICTION OF
OFFENSES RESULTING IN IMPRISONMENT
FOR MORE THAN 1 YEAR AND UPON FUGI-
TIVE FELON STATUS.
(a) TITLE II AMENDMENTS.—Section 205(j)(2) of
the Social Security Act (42 U.S.C. 405(j)(2)) is
amended—
(1) in subparagraph (B)(i)—
(A) by striking ‘‘and’’ at the end of sub-
clause (III);
(B) by redesignating subclause (IV) as
subclause (VI); and
(C) by inserting after subclause (III) the
following new subclauses:
‘‘(IV) obtain information concerning whether
such person has been convicted of any other offense
under Federal or State law which resulted in impris-
onment for more than 1 year,
‘‘(V) obtain information concerning whether
such person is a fugitive felon as described in section
1611(e)(4), and’’.
(2) in subparagraph (C)(i)(II), by striking
‘‘subparagraph (B)(i)(IV),,’’ and inserting ‘‘subpara-
graph 
(B)(i)(VI)’’ 
and 
striking 
‘‘section
HR 4070 RFS
1631(a)(2)(B)(ii)(IV)’’ 
and 
inserting 
‘‘section
1631(a)(2)(B)(ii)(VI)’’; and
(3) in subparagraph (C)(i)—
(A) by striking ‘‘or’’ at the end of sub-
clause (II);
(B) by striking the period at the end of
subclause (III) and inserting a comma; and
(C) by adding at the end the following new
subclauses:
‘‘(IV) such person has previously been convicted
as described in subparagraph (B)(i)(IV), unless the
Commissioner determines that such certification
would be appropriate notwithstanding such convic-
tion, or
‘‘(V) such person is in fugitive felon status as
described in section 1611(e)(4).’’.
(b) TITLE VIII AMENDMENTS.—Section 807 of such
Act (42 U.S.C. 1007) is amended—
(1) in subsection (b)(2)—
(A) by striking ‘‘and’’ at the end of sub-
paragraph (C);
(B) by redesignating subparagraph (D) as
subparagraph (F); and
(C) by inserting after subparagraph (C)
the following new subparagraphs:
HR 4070 RFS
‘‘(D) obtain information concerning wheth-
er such person has been convicted of any other
offense under a law of the United States or of
any State of the United States which resulted
in imprisonment for more than 1 year;
‘‘(E) obtain information concerning wheth-
er such person is a fugitive felon as described
in section 804(a)(2); and’’; and
(2) in subsection (d)(1)—
(A) by striking ‘‘or’’ at the end of subpara-
graph (B);
(B) by striking the period at the end of
subparagraph (C) and inserting a semicolon;
and
(C) by adding at the end the following new
subparagraphs:
‘‘(D) such person has previously been con-
victed as described in subsection (b)(2)(D), un-
less the Commissioner determines that such
payment would be appropriate notwithstanding
such conviction; or
‘‘(E) such person is in fugitive felon status
as described in section 804(a)(2).’’.
HR 4070 RFS
(c) 
TITLE
XVI 
AMENDMENTS.—Section
1631(a)(2)(B) of such Act (42 U.S.C. 1383(a)(2)(B)) is
amended—
(1) in clause (ii)—
(A) by striking ‘‘and’’ at the end of sub-
clause (III);
(B) by redesignating subclause (IV) as
subclause (VI); and
(C) by inserting after subclause (III) the
following new subclauses:
‘‘(IV) obtain information concerning whether
the person has been convicted of any other offense
under Federal or State law which resulted in impris-
onment for more than 1 year;
‘‘(V) obtain information concerning whether
such person is a fugitive felon as described in section
1611(e)(4); and’’;
(2) in clause (iii)(II)—
(A) by striking ‘‘clause (ii)(IV)’’ and in-
serting ‘‘clause (ii)(VI)’’; and
(B) 
by 
striking 
‘‘section
205(j)(2)(B)(i)(IV)’’ and inserting ‘‘section
205(j)(2)(B)(i)(VI)’’; and
(3) in clause (iii)—
HR 4070 RFS
(A) by striking ‘‘or’’ at the end of sub-
clause (II);
(B) by striking the period at the end of
subclause (III) and inserting a semicolon; and
(C) by adding at the end the following new
subclauses:
‘‘(IV) if the person has previously been con-
victed as described in clause (ii)(IV) of this subpara-
graph, unless the Commissioner determines that the
payment would be appropriate notwithstanding the
conviction; or
‘‘(V) such person is in fugitive felon status as
described in section 1611(e)(4).’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the first day of the thir-
teenth month beginning after the date of the enactment
of this Act.
(e) REPORT TO THE CONGRESS.—The Commissioner
of Social Security, in consultation with the Inspector Gen-
eral of the Social Security Administration, shall prepare
a report evaluating whether the existing procedures and
reviews for the qualification (including disqualification) of
representative payees are sufficient to enable the Commis-
sioner to protect benefits from being misused by represent-
ative payees. The Commissioner shall submit the report
HR 4070 RFS
to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the
Senate no later than 270 days after the date of the enact-
ment of this Act. The Commissioner shall include in such
report any recommendations that the Commissioner con-
siders appropriate.
SEC. 104. FEE FORFEITURE IN CASE OF BENEFIT MISUSE
BY REPRESENTATIVE PAYEES.
(a) TITLE II AMENDMENTS.—Section 205(j)(4)(A)(i)
of the Social Security Act (42 U.S.C. 405(j)(4)(A)(i)) is
amended—
(1) in the first sentence, by striking ‘‘A’’ and
inserting ‘‘Except as provided in the next sentence,
a’’; and
(2) in the second sentence, by striking ‘‘The
Secretary’’ and inserting the following:
‘‘A qualified organization may not collect a fee from an
individual for any month with respect to which the Com-
missioner of Social Security or a court of competent juris-
diction has determined that the organization misused all
or part of the individual’s benefit, and any amount so col-
lected by the qualified organization for such month shall
be treated as a misused part of the individual’s benefit
for purposes of paragraphs (5) and (6). The Commis-
sioner’’.
HR 4070 RFS
(b) 
TITLE
XVI 
AMENDMENTS.—Section
1631(a)(2)(D)(i) 
of 
such 
Act 
(42
U.S.C. 1383(a)(2)(D)(i)) is amended—
(1) in the first sentence, by striking ‘‘A’’ and
inserting ‘‘Except as provided in the next sentence,
a’’; and
(2) in the second sentence, by striking ‘‘The
Commissioner’’ and inserting the following: ‘‘A
qualified organization may not collect a fee from an
individual for any month with respect to which the
Commissioner of Social Security or a court of com-
petent jurisdiction has determined that the organiza-
tion misused all or part of the individual’s benefit,
and any amount so collected by the qualified organi-
zation for such month shall be treated as a misused
part of the individual’s benefit for purposes of sub-
paragraphs (E) and (F). The Commissioner’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to any month involving benefit mis-
use by a representative payee in any case with respect to
which the Commissioner makes the determination of mis-
use after December 31, 2002.
HR 4070 RFS
SEC. 105. LIABILITY OF REPRESENTATIVE PAYEES FOR
MISUSED BENEFITS.
(a) TITLE II AMENDMENTS.—Section 205(j) of the
Social Security Act (42 U.S.C. 405(j)) (as amended by
sections 101 and 102 of this Act) is amended further—
(1) by redesignating paragraphs (7), (8), and
(9) as paragraphs (8), (9), and (10), respectively;
(2) in paragraphs (2)(C)(v), (3)(F), and (4)(B),
by striking ‘‘paragraph (9)’’ and inserting ‘‘para-
graph (10)’’;
(3) in paragraph (6)(A)(ii), by striking ‘‘para-
graph (9)’’ and inserting ‘‘paragraph (10)’’; and
(4) by inserting after paragraph (6) the fol-
lowing new paragraph:
‘‘(7)(A) If the Commissioner of Social Security or a
court of competent jurisdiction determines that a rep-
resentative payee that is not a Federal, State, or local gov-
ernment agency has misused all or part of an individual’s
benefit that was paid to such representative payee under
this subsection, the representative payee shall be liable for
the amount misused, and such amount (to the extent not
repaid by the representative payee) shall be treated as an
overpayment of benefits under this title to the representa-
tive payee for all purposes of this Act and related laws
pertaining to the recovery of such overpayments. Subject
to subparagraph (B), upon recovering all or any part of
HR 4070 RFS
such amount, the Commissioner shall certify an amount
equal to the recovered amount for payment to such indi-
vidual or such individual’s alternative representative
payee.
‘‘(B) The total of the amount certified for payment
to such individual or such individual’s alternative rep-
resentative payee under subparagraph (A) of this para-
graph and the amount certified for payment under para-
graph (5) may not exceed the total benefit amount mis-
used by the representative payee with respect to such indi-
vidual.’’.
(b) TITLE VIII AMENDMENT.—Section 807 of such
Act (as amended by section 102(b)(2)) is amended further
by adding at the end the following new subsection:
‘‘(l) LIABILITY FOR MISUSED AMOUNTS.—
‘‘(1) IN GENERAL.—If the Commissioner of So-
cial Security or a court of competent jurisdiction de-
termines that a representative payee that is not a
Federal, State, or local government agency has mis-
used all or part of an individual’s benefit that was
paid to such representative payee under this section,
the representative payee shall be liable for the
amount misused, and such amount (to the extent
not repaid by the representative payee) shall be
treated as an overpayment of benefits under this
HR 4070 RFS
title to the representative payee for all purposes of
this Act and related laws pertaining to the recovery
of such overpayments. Subject to paragraph (2),
upon recovering all or any part of such amount, the
Commissioner shall make payment of an amount
equal to the recovered amount to such individual or
such individual’s alternative representative payee.
‘‘(2) LIMITATION.—The total of the amount
paid to such individual or such individual’s alter-
native representative payee under paragraph (1) of
this subsection and the amount paid under sub-
section (i) may not exceed the total benefit amount
misused by the representative payee with respect to
such individual.’’.
(c) TITLE XVI AMENDMENTS.—Section 1631(a)(2)
of such Act (42 U.S.C. 1383(a)(2)) (as amended by sec-
tion 102 of this Act) is amended further—
(1) in subparagraph (G)(i)(II), by striking ‘‘sec-
tion 205(j)(9)’’ and inserting ‘‘section 205(j)(10)’’;
and
(2) by striking subparagraph (H) and inserting
the following:
‘‘(H)(i) If the Commissioner of Social Security or a
court of competent jurisdiction determines that a rep-
resentative payee that is not a Federal, State, or local gov-
HR 4070 RFS
ernment agency has misused all or part of an individual’s
benefit that was paid to the representative payee under
this paragraph, the representative payee shall be liable for
the amount misused, and the amount (to the extent not
repaid by the representative payee) shall be treated as an
overpayment of benefits under this title to the representa-
tive payee for all purposes of this Act and related laws
pertaining to the recovery of the overpayments. Subject
to clause (ii), upon recovering all or any part of the
amount, the Commissioner shall make payment of an
amount equal to the recovered amount to such individual
or such individual’s alternative representative payee.
‘‘(ii) The total of the amount paid to such individual
or such individual’s alternative representative payee under
clause (i) of this subparagraph and the amount paid under
subparagraph (E) may not exceed the total benefit amount
misused by the representative payee with respect to such
individual.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to benefit misuse by a representa-
tive payee in any case with respect to which the Commis-
sioner makes the determination of misuse after December
31, 2002.
HR 4070 RFS
SEC. 106. AUTHORITY TO REDIRECT DELIVERY OF BENEFIT
PAYMENTS WHEN A REPRESENTATIVE PAYEE
FAILS TO PROVIDE REQUIRED ACCOUNTING.
(a) TITLE II AMENDMENTS.—Section 205(j)(3) of
the Social Security Act (42 U.S.C. 405(j)(3)) (as amend-
ed by sections 102(a)(1)(B) and 105(a)(2)) is amended—
(1) by redesignating subparagraphs (E) and
(F) as subparagraphs (F) and (G), respectively; and
(2) by inserting after subparagraph (D) the fol-
lowing new subparagraph:
‘‘(E) In any case in which the person described in
subparagraph (A) or (D) receiving payments on behalf of
another fails to submit a report required by the Commis-
sioner of Social Security under subparagraph (A) or (D),
the Commissioner may, after furnishing notice to such
person and the individual entitled to such payment, re-
quire that such person appear in person at a field office
of the Social Security Administration serving the area in
which the individual resides in order to receive such pay-
ments.’’.
(b) TITLE VIII AMENDMENTS.—Section 807(h) of
such Act (42 U.S.C. 1007(h)) is amended—
(1) by redesignating paragraphs (3) and (4) as
paragraphs (4) and (5), respectively; and
(2) by inserting after paragraph (2) the fol-
lowing new paragraph:
HR 4070 RFS
‘‘(3) AUTHORITY TO REDIRECT DELIVERY OF
BENEFIT
PAYMENTS
WHEN
A
REPRESENTATIVE
PAYEE
FAILS
TO
PROVIDE
REQUIRED
ACCOUNT-
ING.—In any case in which the person described in
paragraph (1) or (2) receiving benefit payments on
behalf of a qualified individual fails to submit a re-
port required by the Commissioner of Social Secu-
rity under paragraph (1) or (2), the Commissioner
may, after furnishing notice to such person and the
qualified individual, require that such person appear
in person at a United States Government facility
designated by the Social Security Administration as
serving the area in which the qualified individual re-
sides in order to receive such benefit payments.’’.
(c) 
TITLE
XVI 
AMENDMENT.—Section
1631(a)(2)(C) of such Act (42 U.S.C. 1383(a)(2)(C)) is
amended by adding at the end the following new clause:
‘‘(v) In any case in which the person described in
clause (i) or (iv) receiving payments on behalf of another
fails to submit a report required by the Commissioner of
Social Security under clause (i) or (iv), the Commissioner
may, after furnishing notice to the person and the indi-
vidual entitled to the payment, require that such person
appear in person at a field office of the Social Security
HR 4070 RFS
Administration serving the area in which the individual
resides in order to receive such payments.’’.
(d) EFFECTIVE DATE.—The amendment made by
this section shall take effect 180 days after the date of
the enactment of this Act.
Subtitle B—Enforcement
SEC. 111. CIVIL MONETARY PENALTY AUTHORITY WITH RE-
SPECT TO WRONGFUL CONVERSIONS BY REP-
RESENTATIVE PAYEES.
(a) IN GENERAL.—Section 1129(a) of the Social Se-
curity Act (42 U.S.C. 1320a–8) is amended by adding at
the end the following new paragraph:
‘‘(3) Any person (including an organization, agency,
or other entity) who, having received, while acting in the
capacity of a representative payee pursuant to section
205(j), 807, or 1631(a)(2), a payment under title II, VIII,
or XVI for the use and benefit of another individual, con-
verts such payment, or any part thereof, to a use that
such person knows or should know is other than for the
use and benefit of such other individual shall be subject
to, in addition to any other penalties that may be pre-
scribed by law, a civil money penalty of not more than
$5,000 for each such conversion. Such person shall also
be subject to an assessment, in lieu of damages sustained
by the United States resulting from the conversion, of not
HR 4070 RFS
more than twice the amount of any payments so con-
verted.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply with respect to violations com-
mitted after the date of the enactment of this Act.
TITLE II—PROGRAM
PROTECTIONS
SEC. 201. CIVIL MONETARY PENALTY AUTHORITY WITH RE-
SPECT TO KNOWING WITHHOLDING OF MATE-
RIAL FACTS.
(a) TREATMENT OF WITHHOLDING OF MATERIAL
FACTS.—
(1) CIVIL PENALTIES.—Section 1129(a)(1) of
the Social Security Act (42 U.S.C. 1320a–8(a)(1))
is amended—
(A) by striking ‘‘who’’ in the first sentence
and inserting ‘‘who—’’;
(B) by striking ‘‘makes’’ in the first sen-
tence and all that follows through ‘‘shall be sub-
ject to’’ and inserting the following:
‘‘(A) makes, or causes to be made, a statement
or representation of a material fact, for use in deter-
mining any initial or continuing right to or the
amount of monthly insurance benefits under title II
or benefits or payments under title VIII or XVI,
HR 4070 RFS
that the person knows or should know is false or
misleading,
‘‘(B) makes such a statement or representation
for such use with knowing disregard for the truth,
‘‘(C) omits from a statement or representation
for such use, or otherwise withholds disclosure of, a
fact which the person knows or should know is mate-
rial to the determination of any initial or continuing
right to or the amount of monthly insurance benefits
under title II or benefits or payments under title
VIII or XVI, if the person knows, or should know,
that the statement or representation with such omis-
sion is false or misleading or that the withholding of
such disclosure is misleading, or
‘‘(D) conceals or fails to disclose the occurrence
of any event that the person knows, or should know,
is material to the determination of any initial or con-
tinuing right to the amount of monthly insurance
benefits under title II or benefits or payments under
title VIII or XVI,
shall be subject to’’;
(C) by inserting ‘‘or each receipt of such
benefits or payments while withholding disclo-
sure of such fact’’ after ‘‘each such statement
or representation’’ in the first sentence;
HR 4070 RFS
(D) by inserting ‘‘or because of such with-
holding of disclosure of a material fact’’ after
‘‘because of such statement or representation’’
in the second sentence; and
(E) by inserting ‘‘or such a withholding of
disclosure’’ after ‘‘such a statement or rep-
resentation’’ in the second sentence.
(2) ADMINISTRATIVE PROCEDURE FOR IMPOS-
ING PENALTIES.—Section 1129A(a) of such Act (42
U.S.C. 1320a–8a(a)) is amended—
(A) by striking ‘‘who’’ the first place it ap-
pears and inserting ‘‘who—’’; and
(B) by striking ‘‘makes’’ and all that fol-
lows through ‘‘shall be subject to,’’ and insert-
ing the following:
‘‘(1) makes, or causes to be made, a statement
or representation of a material fact, for use in deter-
mining any initial or continuing right to or the
amount of monthly insurance benefits under title II
or benefits or payments under title VIII or XVI that
the person knows or should know is false or mis-
leading,
‘‘(2) makes such a statement or representation
for such use with knowing disregard for the truth,
HR 4070 RFS
‘‘(3) omits from a statement or representation
for such use, or otherwise withholds disclosure of, a
fact which the person knows or should know is mate-
rial to the determination of any initial or continuing
right to or the amount of monthly insurance benefits
under title II or benefits or payments under title
VIII or XVI, if the person knows, or should know,
that the statement or representation with such omis-
sion is false or misleading or that the withholding of
such disclosure is misleading, or
‘‘(4) conceals or fails to disclose the occurrence
of any event that the person knows, or should know,
is material to the determination of any initial or con-
tinuing right to the amount of monthly insurance
benefits under title II or benefits or payments under
title VIII or XVI,
shall be subject to,’’.
(b) CLARIFICATION OF TREATMENT OF RECOVERED
AMOUNTS.—Section 1129(e)(2)(B) of such Act (42
U.S.C. 1320a–8(e)(2)(B)) is amended by striking ‘‘In the
case of amounts recovered arising out of a determination
relating to title VIII or XVI,’’ and inserting ‘‘In the case
of any other amounts recovered under this section,’’.
(c) CONFORMING AMENDMENTS.—
HR 4070 RFS
(1) Section 1129(b)(3)(A) of such Act (42
U.S.C. 1320a–8(b)(3)(A)) is amended by striking
‘‘charging fraud or false statements’’.
(2) Section 1129(c)(1) of such Act (42
U.S.C. 1320a–8(c)(1)) is amended by striking ‘‘and
representations’’ and inserting ‘‘, representations, or
actions’’.
(3) Section 1129(e)(1)(A) of such Act (42
U.S.C. 1320a–8(e)(1)(A)) is amended by striking
‘‘statement or representation referred to in sub-
section (a) was made’’ and inserting ‘‘violation oc-
curred’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to violations com-
mitted after the later of—
(1) 180 days after the date of the enactment of
this Act, or
(2) the earlier of the date on which the Com-
missioner of Social Security implements the system
for issuing the receipts required under subsection (e)
of this section or the date on which the Commis-
sioner implements the centralized computer file de-
scribed in such subsection.
(e) ISSUANCE BY COMMISSIONER OF RECEIPTS TO
ACKNOWLEDGE SUBMISSION OF REPORTS OF CHANGES
HR 4070 RFS
IN EARNING OR WORK STATUS.—Effective 180 days after
the date of the enactment of this Act, until such time as
the Commissioner of Social Security implements a central-
ized computer file recording the date of the submission
of information by a beneficiary (or representative) regard-
ing a change in the beneficiary’s earning or work status,
the Commissioner shall issue a receipt to the beneficiary
(or representative) each time he or she submits docu-
mentation, or otherwise reports to the Commissioner, on
a change in such status.
SEC. 202. DENIAL OF TITLE II BENEFITS TO FUGITIVE FEL-
ONS AND PERSONS FLEEING PROSECUTION.
(a) IN GENERAL.—Section 202(x) of the Social Secu-
rity Act (42 U.S.C. 402(x)) is amended—
(1) in the heading, by striking ‘‘Prisoners’’ and
all that follows and inserting the following: ‘‘Pris-
oners, Certain Other Inmates of Publicly Funded In-
stitutions, and Fugitives’’;
(2) in paragraph (1)(A)(ii)(IV), by striking
‘‘or’’ at the end;
(3) in paragraph (1)(A)(iii), by striking the pe-
riod at the end and inserting a comma;
(4) by inserting after paragraph (1)(A)(iii) the
following:
HR 4070 RFS
‘‘(iv) is fleeing to avoid prosecution, or custody
or confinement after conviction, under the laws of
the place from which the person flees, for a crime,
or an attempt to commit a crime, which is a felony
under the laws of the place from which the person
flees, or which, in the case of the State of New Jer-
sey, is a high misdemeanor under the laws of such
State, or
‘‘(v) is violating a condition of probation or pa-
role imposed under Federal or State law.
In the case of an individual from whom such monthly ben-
efits have been withheld pursuant to clause (iv), the Com-
missioner may, for good cause shown, pay such withheld
benefits to the individual.’’; and
(5) in paragraph (3), by adding at the end the
following new subparagraph:
‘‘(C) Notwithstanding the provisions of section 552a
of title 5, United States Code, or any other provision of
Federal or State law (other than section 6103 of the Inter-
nal Revenue Code of 1986 and section 1106(c) of this
Act), the Commissioner shall furnish any Federal, State,
or local law enforcement officer, upon the written request
of the officer, with the current address, Social Security
number, and photograph (if applicable) of any beneficiary
under this title, if the officer furnishes the Commissioner
HR 4070 RFS
with the name of the beneficiary, and other identifying in-
formation as reasonably required by the Commissioner to
establish the unique identity of the beneficiary, and noti-
fies the Commissioner that—
‘‘(i) the beneficiary—
‘‘(I) is described in clause (iv) or (v) of
paragraph (1)(A); and
‘‘(II) has information that is necessary for
the officer to conduct the officer’s official du-
ties; and
‘‘(ii) the location or apprehension of the bene-
ficiary is within the officer’s official duties.’’.
(b) REGULATIONS.—Not later than 1 year after the
date of the enactment of this Act, the Commissioner of
Social Security shall promulgate regulations governing
payment by the Commissioner, for good cause shown, of
withheld benefits, pursuant to the last sentence of section
202(x)(1)(A) of the Social Security Act (as amended by
subsection (a)).
SEC. 203. REQUIREMENTS RELATING TO OFFERS TO PRO-
VIDE FOR A FEE A PRODUCT OR SERVICE
AVAILABLE WITHOUT CHARGE FROM THE SO-
CIAL SECURITY ADMINISTRATION.
(a) IN GENERAL.—Section 1140 of the Social Secu-
rity Act (42 U.S.C. 1320b–10) is amended—
HR 4070 RFS
(1) in subsection (a), by adding at the end the
following new paragraph:
‘‘(4)(A) No person shall offer, for a fee, to assist an
individual to obtain a product or service that the person
knows or should know is provided free of charge by the
Social Security Administration unless, at the time the
offer is made, the person provides to the individual to
whom the offer is tendered a notice that—
‘‘(i) explains that the product or service is avail-
able free of charge from the Social Security Admin-
istration, and
‘‘(ii) complies with standards prescribed by the
Commissioner of Social Security respecting content
of such notice and its placement, visibility, and leg-
ibility.
‘‘(B) Subparagraph (A) shall not apply to any offer—
‘‘(i) to serve as a claimant representative in
connection with a claim arising under title II, title
VIII, or title XVI; or
‘‘(ii) to prepare, or assist in the preparation of,
an individual’s plan for achieving self-support under
title XVI.’’; and
(2) in the heading, by striking ‘‘PROHIBITION
OF MISUSE OF SYMBOLS, EMBLEMS, OR NAMES IN
HR 4070 RFS
REFERENCE’’ and inserting ‘‘PROHIBITIONS RELAT-
ING TO REFERENCES’’.
(b) EFFECTIVE DATE.—The amendments made by this
section shall apply to offers of assistance made after the
sixth month ending after the Commissioner of Social Secu-
rity promulgates final regulations prescribing the stand-
ards applicable to the notice required to be provided in
connection with such offer. The Commissioner shall pro-
mulgate such final regulations within one year after the
date of the enactment of this Act.
SEC. 204. REFUSAL TO RECOGNIZE CERTAIN INDIVIDUALS
AS CLAIMANT REPRESENTATIVES.
Section 206(a)(1) of the Social Security Act (42
U.S.C. 406(a)(1)) is amended by inserting after the sec-
ond sentence the following: ‘‘Notwithstanding the pre-
ceding sentences, the Commissioner (A) may refuse to rec-
ognize as a representative, and may disqualify a represent-
ative already recognized, any attorney who has been dis-
barred or suspended from any court or bar to which he
or she was previously admitted to practice or who has been
disqualified from participating in or appearing before any
Federal program or agency, and (B) may refuse to recog-
nize, and may disqualify, as a non-attorney representative
any attorney who has been disbarred or suspended from
any court or bar to which he or she was previously admit-
HR 4070 RFS
ted to practice. A representative who has been disqualified
or suspended pursuant to this section from appearing be-
fore the Social Security Administration as a result of col-
lecting or receiving a fee in excess of the amount author-
ized shall be barred from appearing before the Social Se-
curity Administration as a representative until full restitu-
tion is made to the claimant and, thereafter, may be con-
sidered for reinstatement only under such rules as the
Commissioner may prescribe.’’.
SEC. 205. PENALTY FOR CORRUPT OR FORCIBLE INTER-
FERENCE WITH ADMINISTRATION OF SOCIAL
SECURITY ACT.
Part A of title XI of the Social Security Act (42
U.S.C. 1301 et seq.) is amended by inserting after section
1134 the following new section:
‘‘ATTEMPTS TO INTERFERE WITH ADMINISTRATION OF
SOCIAL SECURITY ACT
‘‘SEC. 
1135. CORRUPT
OR
FORCIBLE
INTER-
FERENCE.—Whoever corruptly or by force or threats of
force (including any threatening letter or communication)
attempts to intimidate or impede any officer, employee,
or contractor of the social security administration (includ-
ing any State employee of a disability determination serv-
ice or any other individual designated by the commissioner
of social security) acting in an official capacity to carry
out a duty under this act, or in any other way corruptly
HR 4070 RFS
or by force or threats of force (including any threatening
letter or communication) obstructs or impedes, or at-
tempts to obstruct or impede, the due administration of
this act, shall be fined not more than $5,000, imprisoned
not more than 3 years, or both, except that if the offense
is committed only by threats of force, the person shall be
fined not more than $3,000, imprisoned not more than
1 year, or both. In this subsection, the term ‘threats of
force’ means threats of harm to the officer or employee
of the United States or to a member of the family of such
an officer or employee.’’.
SEC. 206. USE OF SYMBOLS, EMBLEMS, OR NAMES IN REF-
ERENCE TO SOCIAL SECURITY OR MEDICARE.
(a) IN GENERAL.—Section 1140(a)(1) of the Social
Security Act (42 U.S.C. 1320b–10(a)(1)) is amended—
(1) in subparagraph (A), by inserting ‘‘ ‘Cen-
ters for Medicare & Medicaid Services’,’’ after
‘‘ ‘Health Care Financing Administration’,’’, by
striking ‘‘or ‘Medicaid’, ’’ and inserting ‘‘ ‘Med-
icaid’, ‘Death Benefits Update’, ‘Federal Benefit In-
formation’, ‘Funeral Expenses’, or ‘Final Supple-
mental Plan’,’’ and by inserting ‘‘ ‘CMS’,’’ after
‘‘ ‘HCFA’,’’;
(2) in subparagraph (B), by inserting ‘‘Centers
for Medicare & Medicaid Services,’’ after ‘‘Health
HR 4070 RFS
Care Financing Administration,’’ each place it ap-
pears; and
(3) in the matter following subparagraph (B),
by striking ‘‘the Health Care Financing Administra-
tion,’’ each place it appears and inserting ‘‘the Cen-
ters for Medicare & Medicaid Services,’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply to items sent after 180 days after
the date of the enactment of this Act.
TITLE III—ATTORNEY FEE PAY-
MENT 
SYSTEM 
IMPROVE-
MENTS
SEC. 301. CAP ON ATTORNEY ASSESSMENTS.
(a) IN GENERAL.—Section 206(d)(2)(A) of the Social
Security Act (42 U.S.C. 406(d)(2)(A)) is amended by in-
serting ‘‘, except that the maximum amount of the assess-
ment may not exceed $100’’ after ‘‘subparagraph (B)’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply with respect to fees for representa-
tion of claimants which are first required to be certified
or paid under section 206 of the Social Security Act on
or after the first day of the first month that begins after
180 days after the date of the enactment of this Act.
HR 4070 RFS
SEC. 302. EXTENSION OF ATTORNEY FEE PAYMENT SYSTEM
TO TITLE XVI CLAIMS.
(a) IN GENERAL.—Section 1631(d)(2) of the Social
Security Act (42 U.S.C. 1383(d)(2)) is amended—
(1) in subparagraph (A), in the matter pre-
ceding clause (i)—
(A) by striking ‘‘section 206(a)’’ and in-
serting ‘‘section 206’’;
(B) by striking ‘‘(other than paragraph (4)
thereof)’’ and inserting ‘‘(other than sub-
sections (a)(4) and (d) thereof)’’; and
(C) by striking ‘‘paragraph (2) thereof’’
and inserting ‘‘such section’’;
(2) in subparagraph (A)(i), by striking ‘‘in sub-
paragraphs (A)(ii)(I) and (C)(i),’’ and inserting ‘‘in
subparagraphs (A)(ii)(I) and (D)(i) of subsection
(a)(2)’’, and by striking ‘‘and’’ at the end;
(3) by striking subparagraph (A)(ii) and insert-
ing the following:
‘‘(ii) by substituting, in subsections (a)(2)(B)
and (b)(1)(B)(i), the phrase ‘section 1631(a)(7)(A)
or the requirements of due process of law’ for the
phrase ‘subsection (g) or (h) of section 223’;
‘‘(iii) by substituting, in subsection (a)(2)(C)(i),
the phrase ‘under title II’ for the phrase ‘under title
XVI’;
HR 4070 RFS
‘‘(iv) by substituting, in subsection (b)(1)(A),
the phrase ‘pay the amount of such fee’ for the
phrase ‘certify the amount of such fee for payment’
and by striking, in subsection (b)(1)(A), the phrase
‘or certified for payment’; and
‘‘(v) by substituting, in subsection (b)(1)(B)(ii),
the phrase ‘deemed to be such amounts as deter-
mined before any applicable reduction under section
1631(g), and reduced by the amount of any reduc-
tion in benefits under this title or title II made pur-
suant to section 1127(a)’ for the phrase ‘determined
before any applicable reduction under section
1127(a))’.’’; and
(4) by striking subparagraph (B) and inserting
the following new subparagraphs:
‘‘(B) Subject to subparagraph (C), if the claimant is
determined to be entitled to past-due benefits under this
title and the person representing the claimant is an attor-
ney, the Commissioner of Social Security shall pay out of
such past-due benefits to such attorney an amount equal
to the lesser of—
‘‘(i) so much of the maximum fee as does not
exceed 25 percent of such past-due benefits (as de-
termined before any applicable reduction under sec-
tion 1631(g) and reduced by the amount of any re-
HR 4070 RFS
duction in benefits under this title or title II pursu-
ant to section 1127(a)), or
‘‘(ii) the amount of past-due benefits available
after any applicable reductions under sections
1631(g) and 1127(a).
‘‘(C)(i) Whenever a fee for services is required to be
paid to an attorney from a claimant’s past-due benefits
pursuant to subparagraph (B), the Commissioner shall
impose on the attorney an assessment calculated in ac-
cordance with clause (ii).
‘‘(ii)(I) The amount of an assessment under clause
(i) shall be equal to the product obtained by multiplying
the amount of the representative’s fee that would be re-
quired to be paid by subparagraph (B) before the applica-
tion of this subparagraph, by the percentage specified in
subclause (II), except that the maximum amount of the
assessment may not exceed $100.
‘‘(II) The percentage specified in this subclause is
such percentage rate as the Commissioner determines is
necessary in order to achieve full recovery of the costs of
determining and approving fees to attorneys from the
past-due benefits of claimants, but not in excess of 6.3
percent.
‘‘(iii) The Commissioner may collect the assessment
imposed on an attorney under clause (i) by offset from
HR 4070 RFS
the amount of the fee otherwise required by subparagraph
(B) to be paid to the attorney from a claimant’s past-due
benefits.
‘‘(iv) An attorney subject to an assessment under
clause (i) may not, directly or indirectly, request or other-
wise obtain reimbursement for such assessment from the
claimant whose claim gave rise to the assessment.
‘‘(v) Assessments on attorneys collected under this
subparagraph shall be deposited in the Treasury in a sepa-
rate fund created for this purpose.
‘‘(vi) The assessments authorized under this subpara-
graph shall be collected and available for obligation only
to the extent and in the amount provided in advance in
appropriations Acts. Amounts so appropriated are au-
thorized to remain available until expended, for adminis-
trative expenses in carrying out this title and related
laws.’’.
(b) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to fees for representa-
tion of claimants which are first required to be certified
or paid under section 1631(d)(2) of the Social Security
Act on or after the first day of the first month that begins
after 270 days after the date of the enactment of this Act.
(c) REPORT TO THE CONGRESS.—The Commissioner
of Social Security, after consulting with representatives of
HR 4070 RFS
affected beneficiaries and other interested persons, shall
prepare a report evaluating the feasibility of extending to
non-attorney representatives the fee withholding proce-
dures that apply under titles II and XVI of the Social Se-
curity Act for the payment of attorney fees. The Commis-
sioner shall submit the report to the Committee on Ways
and Means of the House of Representatives and the Com-
mittee on Finance of the Senate no later than 270 days
after the date of the enactment of this Act, and the Com-
missioner shall include in such report any recommenda-
tions that the Commissioner considers appropriate.
TITLE IV—MISCELLANEOUS AND
TECHNICAL AMENDMENTS
Subtitle A—Amendments Relating
to the Ticket to Work and Work
Incentives Improvement Act of
1999
SEC. 401. APPLICATION OF DEMONSTRATION AUTHORITY
SUNSET DATE TO NEW PROJECTS.
Section 234 of the Social Security Act (42
U.S.C. 434) is amended—
(1) in the first sentence of subsection (c), by
striking ‘‘conducted under subsection (a)’’ and in-
serting ‘‘initiated under subsection (a) on or before
December 17, 2004’’; and
HR 4070 RFS
(2) in subsection (d)(2), by amending the first
sentence to read as follows: ‘‘The authority to ini-
tiate projects under the preceding provisions of this
section shall terminate on December 18, 2004.’’.
SEC. 402. EXPANSION OF WAIVER AUTHORITY AVAILABLE
IN 
CONNECTION 
WITH 
DEMONSTRATION
PROJECTS PROVIDING FOR REDUCTIONS IN
DISABILITY INSURANCE BENEFITS BASED ON
EARNINGS.
Section 302(c) of the Ticket to Work and Work In-
centives Improvement Act of 1999 (42 U.S.C. 434 note)
is amended by striking ‘‘(42 U.S.C. 401 et seq.),’’ and
inserting ‘‘(42 U.S.C. 401 et seq.) and the requirements
of section 1148 of such Act (42 U.S.C. 1320b–19) as they
relate to the program established under title II of such
Act,’’.
SEC. 403. FUNDING OF DEMONSTRATION PROJECTS PRO-
VIDED FOR REDUCTIONS IN DISABILITY IN-
SURANCE BENEFITS BASED ON EARNINGS.
Section 302(f) of the Ticket to Work and Work In-
centives Improvement Act of 1999 (42 U.S.C. 434 note)
is amended to read as follows:
‘‘(f) EXPENDITURES.—Administrative expenses for
demonstration projects under this section shall be paid
from funds available for the administration of title II or
HR 4070 RFS
title XVIII of the Social Security Act, as appro-
priate. Benefits payable to or on behalf of individuals by
reason of participation in projects under this section shall
be made from the Federal Disability Insurance Trust
Fund and the Federal Old-Age and Survivors Insurance
Trust Fund, as determined appropriate by the Commis-
sioner of Social Security, and from the Federal Hospital
Insurance Trust Fund and the Federal Supplementary
Medical Insurance Trust Fund, as determined appropriate
by the Secretary of Health and Human Services, from
funds available for benefits under such title II or title
XVIII.’’.
SEC. 404. AVAILABILITY OF FEDERAL AND STATE WORK IN-
CENTIVE SERVICES TO ADDITIONAL INDIVID-
UALS.
(a) FEDERAL WORK INCENTIVES OUTREACH PRO-
GRAM.—
(1) IN
GENERAL.—Section 1149(c)(2) of the
Social Security Act (42 U.S.C. 1320b–20(c)(2)) is
amended to read as follows:
‘‘(2) DISABLED BENEFICIARY.—The term ‘dis-
abled beneficiary’ means an individual—
‘‘(A) who is a disabled beneficiary as de-
fined in section 1148(k)(2) of this Act;
HR 4070 RFS
‘‘(B) who is receiving a cash payment de-
scribed in section 1616(a) of this Act or a sup-
plementary 
payment 
described 
in 
section
212(a)(3) of Public Law 93–66 (without regard
to whether such payment is paid by the Com-
missioner pursuant to an agreement under sec-
tion 1616(a) of this Act or under section
212(b) of Public Law 93–66);
‘‘(C) who, pursuant to section 1619(b) of
this Act, is considered to be receiving benefits
under title XVI of this Act; or
‘‘(D) who is entitled to benefits under part
A of title XVIII of this Act by reason of the pe-
nultimate sentence of section 226(b) of this
Act.’’.
(2) EFFECTIVE DATE.—The amendment made
by this subsection shall apply with respect to grants,
cooperative agreements, or contracts entered into on
or after the date of the enactment of this Act.
(b) STATE GRANTS FOR WORK INCENTIVES ASSIST-
ANCE.—
(1) DEFINITION OF DISABLED BENEFICIARY.—
Section 1150(g)(2) of such Act (42 U.S.C. 1320b–
21(g)(2)) is amended to read as follows:
HR 4070 RFS
‘‘(2) DISABLED BENEFICIARY.—The term ‘dis-
abled beneficiary’ means an individual—
‘‘(A) who is a disabled beneficiary as de-
fined in section 1148(k)(2) of this Act;
‘‘(B) who is receiving a cash payment de-
scribed in section 1616(a) of this Act or a sup-
plementary 
payment 
described 
in 
section
212(a)(3) of Public Law 93–66 (without regard
to whether such payment is paid by the Com-
missioner pursuant to an agreement under sec-
tion 1616(a) of this Act or under section
212(b) of Public Law 93–66);
‘‘(C) who, pursuant to section 1619(b) of
this Act, is considered to be receiving benefits
under title XVI of this Act; or
‘‘(D) who is entitled to benefits under part
A of title XVIII of this Act by reason of the pe-
nultimate sentence of section 226(b) of this
Act.’’.
(2) ADVOCACY OR OTHER SERVICES NEEDED
TO
MAINTAIN
GAINFUL
EMPLOYMENT.—Section
1150(b)(2) of such Act (42 U.S.C. 1320b–21(b)(2))
is amended by striking ‘‘secure or regain’’ and in-
serting ‘‘secure, maintain, or regain’’.