I 
108TH CONGRESS 
1ST SESSION 
H. R. 743
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 pro-
gram protections, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 12, 2003
Mr. SHAW (for himself, Mr. MATSUI, Mr. COLLINS, Mr. POMEROY, Mr. LEWIS 
of Kentucky, Mr. BECERRA, Mr. RYAN of Wisconsin, Mrs. JONES of 
Ohio, Mr. RANGEL, Mr. FOLEY, Mr. BALLENGER, Mr. FLETCHER, Ms. 
HARRIS, Mrs. NORTHUP, and Mr. WHITFIELD) introduced the following 
bill; which was referred to the Committee on Ways and Means 
A BILL 
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 protec-
tions, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Social Security Protection Act of 2003’’.
(b) TABLE OF CONTENTS.—The table of contents is 
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 con-
victed 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 representa-
tive 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 acknowl-
edge submission of reports of changes in work or earnings sta-
tus 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 serv-
ice available without charge from the Social Security Adminis-
tration. 
Sec. 205. Refusal to recognize certain individuals as claimant representatives. 
Sec. 206. Penalty for corrupt or forcible interference with administration of So-
cial 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 convic-
tion of fraudulent concealment of work activity. 
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 dem-
onstration projects providing for reductions in disability insur-
ance benefits based on earnings. 
Sec. 403. Funding of demonstration projects provided for reductions in dis-
ability 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 in-
dividual work plans under the Ticket to Work and Self-Suffi-
ciency 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 total-
ization 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 gov-
ernment 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.
TITLE I—PROTECTION OF 
BENEFICIARIES 
Subtitle A—Representative Payees 
SEC. 101. AUTHORITY TO REISSUE BENEFITS MISUSED BY 
ORGANIZATIONAL REPRESENTATIVE PAYEES. 
(a) TITLE II AMENDMENTS.—
(1) 
REISSUANCE
OF
BENEFITS.—Section 
205(j)(5) 
of 
the 
Social 
Security 
Act 
(42 
U.S.C. 405(j)(5)) is amended by inserting after the
first sentence the following new sentences: ‘‘In any 
case in which a representative payee that—
‘‘(A) is not an individual (regardless of whether 
it is a ‘qualified organization’ within the meaning of 
paragraph (4)(B)); or 
‘‘(B) is an individual who, for any month dur-
ing a period when misuse occurs, serves 15 or more 
individuals who are beneficiaries under this title, 
title VIII, title XVI, or any combination of such ti-
tles; 
misuses all or part of an individual’s benefit paid to such 
representative payee, the Commissioner of Social Security 
shall certify for payment to the beneficiary or the bene-
ficiary’s alternative representative payee an amount equal 
to the amount of such benefit so misused. The provisions 
of this paragraph are subject to the limitations of para-
graph (7)(B).’’. 
(2) MISUSE OF BENEFITS DEFINED.—Section 
205(j) of such Act (42 U.S.C. 405(j)) is amended 
by adding at the end the following new paragraph: 
‘‘(8) For purposes of this subsection, misuse of bene-
fits by a representative payee occurs in any case in which 
the representative payee receives payment under this title 
for the use and benefit of another person and converts 
such payment, or any part thereof, to a use other than
for the use and benefit of such other person. The Commis-
sioner of Social Security may prescribe by regulation the 
meaning of the term ‘use and benefit’ for purposes of this 
paragraph.’’. 
(b) TITLE VIII AMENDMENTS.—
(1) REISSUANCE OF BENEFITS.—Section 807(i) 
of the Social Security Act (42 U.S.C. 1007(i)) is 
amended by inserting after the first sentence the fol-
lowing new sentences: ‘‘In any case in which a rep-
resentative payee that—
‘‘(1) is not an individual; or 
‘‘(2) is an individual who, for any month during 
a period when misuse occurs, serves 15 or more indi-
viduals who are beneficiaries under this title, title II, 
title XVI, or any combination of such titles; 
misuses all or part of an individual’s benefit paid to such 
representative payee, the Commissioner of Social Security 
shall pay to the beneficiary or the beneficiary’s alternative 
representative payee an amount equal to the amount of 
such benefit so misused. The provisions of this paragraph 
are subject to the limitations of subsection (l)(2).’’. 
(2) MISUSE OF BENEFITS DEFINED.—Section 
807 of such Act (42 U.S.C. 1007) is amended by 
adding at the end the following new subsection:
‘‘(j) MISUSE OF BENEFITS.—For purposes of this 
title, misuse of benefits by a representative payee occurs 
in any case in which the representative payee receives pay-
ment under this title for the use and benefit of another 
person under this title and converts such payment, or any 
part thereof, to a use other than for the use and benefit 
of such person. The Commissioner of Social Security may 
prescribe by regulation the meaning of the term ‘use and 
benefit’ for purposes of this subsection.’’. 
(3) TECHNICAL AMENDMENT.—Section 807(a) 
of such Act (42 U.S.C. 1007(a)) is amended, in the 
first sentence, by striking ‘‘for his or her benefit’’ 
and inserting ‘‘for his or her use and benefit’’. 
(c) TITLE XVI AMENDMENTS.—
(1) 
REISSUANCE
OF
BENEFITS.—Section 
1631(a)(2)(E) 
of 
such 
Act 
(42 
U.S.C. 1383(a)(2)(E)) is amended by inserting 
after the first sentence the following new sentences: 
‘‘In any case in which a representative payee that—
‘‘(i) is not an individual (regardless of whether 
it is a ‘qualified organization’ within the meaning of 
subparagraph (D)(ii)); or 
‘‘(ii) is an individual who, for any month during 
a period when misuse occurs, serves 15 or more indi-
viduals who are beneficiaries under this title, title II, 
title VIII, or any combination of such titles; 
misuses all or part of an individual’s benefit paid to the 
representative payee, the Commissioner of Social Security 
shall pay to the beneficiary or the beneficiary’s alternative 
representative payee an amount equal to the amount of 
the benefit so misused. The provisions of this subpara-
graph are subject to the limitations of subparagraph 
(H)(ii).’’. 
(2) EXCLUSION OF REISSUED BENEFITS FROM 
RESOURCES.—Section 1613(a) of such Act (42 
U.S.C. 1382b(a)) is amended—
(A) in paragraph (12), by striking ‘‘and’’ 
at the end; 
(B) in paragraph (13), by striking the pe-
riod and inserting ‘‘; and’’; and 
(C) by inserting after paragraph (13) the 
following new paragraph: 
‘‘(14) for the 9-month period beginning after 
the month in which received, any amount received by 
such individual (or spouse) or any other person 
whose income is deemed to be included in such indi-
vidual’s (or spouse’s) income for purposes of this 
title as restitution for benefits under this title, title 
II, or title VIII that a representative payee of such
individual (or spouse) or such other person under 
section 205(j), 807, or 1631(a)(2) has misused.’’. 
(3) MISUSE OF BENEFITS DEFINED.—Section 
1631(a)(2)(A) 
of 
such 
Act 
(42 
U.S.C. 1383(a)(2)(A)) is amended by adding at the 
end the following new clause: 
‘‘(iv) For purposes of this paragraph, misuse of bene-
fits by a representative payee occurs in any case in which 
the representative payee receives payment under this title 
for the use and benefit of another person and converts 
such payment, or any part thereof, to a use other than 
for the use and benefit of such other person. The Commis-
sioner of Social Security may prescribe by regulation the 
meaning of the term ‘use and benefit’ for purposes of this 
clause.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to any case of benefit misuse by 
a representative payee with respect to which the Commis-
sioner makes the determination of misuse on or after Jan-
uary 1, 1995. 
SEC. 102. OVERSIGHT OF REPRESENTATIVE PAYEES. 
(a) CERTIFICATION OF BONDING AND LICENSING 
REQUIREMENTS
FOR
NONGOVERNMENTAL
ORGANIZA-
TIONAL REPRESENTATIVE PAYEES.—
(1) TITLE II AMENDMENTS.—Section 205(j) of 
the Social Security Act (42 U.S.C. 405(j)) is 
amended—
(A) in paragraph (2)(C)(v), by striking ‘‘a 
community-based nonprofit social service agen-
cy licensed or bonded by the State’’ in sub-
clause (I) and inserting ‘‘a certified community-
based nonprofit social service agency (as de-
fined in paragraph (9))’’; 
(B) in paragraph (3)(F), by striking ‘‘com-
munity-based nonprofit social service agencies’’ 
and inserting ‘‘certified community-based non-
profit social service agencies (as defined in 
paragraph (9))’’; 
(C) in paragraph (4)(B), by striking ‘‘any 
community-based nonprofit social service agen-
cy which is bonded or licensed in each State in 
which it serves as a representative payee’’ and 
inserting ‘‘any certified community-based non-
profit social service agency (as defined in para-
graph (9))’’; and 
(D) by adding after paragraph (8) (as 
added by section 101(a)(2) of this Act) the fol-
lowing new paragraph:
‘‘(9) For purposes of this subsection, the term ‘cer-
tified community-based nonprofit social service agency’ 
means a community-based nonprofit social service agency 
which is in compliance with requirements, under regula-
tions which shall be prescribed by the Commissioner, for 
annual certification to the Commissioner that it is bonded 
in accordance with requirements specified by the Commis-
sioner and that it is licensed in each State in which it 
serves as a representative payee (if licensing is available 
in such State) in accordance with requirements specified 
by the Commissioner. Any such annual certification shall 
include a copy of any independent audit on such agency 
which may have been performed since the previous certifi-
cation.’’. 
(2) 
TITLE
XVI
AMENDMENTS.—Section 
1631(a)(2) of such Act (42 U.S.C. 1383(a)(2)) is 
amended—
(A) in subparagraph (B)(vii), by striking 
‘‘a community-based nonprofit social service 
agency licensed or bonded by the State’’ in sub-
clause (I) and inserting ‘‘a certified community-
based nonprofit social service agency (as de-
fined in subparagraph (I))’’; 
(B) in subparagraph (D)(ii)—
(i) by striking ‘‘or any community-
based’’ and all that follows through ‘‘in ac-
cordance’’ in subclause (II) and inserting 
‘‘or any certified community-based non-
profit social service agency (as defined in 
subparagraph (I)), if the agency, in ac-
cordance’’; 
(ii) by redesignating items (aa) and 
(bb) as subclauses (I) and (II), respectively 
(and adjusting the margination accord-
ingly); and 
(iii) by striking ‘‘subclause (II)(bb)’’ 
and inserting ‘‘subclause (II)’’; and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(I) For purposes of this paragraph, the term ‘cer-
tified community-based nonprofit social service agency’ 
means a community-based nonprofit social service agency 
which is in compliance with requirements, under regula-
tions which shall be prescribed by the Commissioner, for 
annual certification to the Commissioner that it is bonded 
in accordance with requirements specified by the Commis-
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—
‘‘(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; 
‘‘(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 
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; 
‘‘(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 
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-
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.’’.
SEC. 103. DISQUALIFICATION FROM SERVICE AS REP-
RESENTATIVE 
PAYEE 
OF 
PERSONS 
CON-
VICTED OF OFFENSES RESULTING IN IMPRIS-
ONMENT FOR MORE THAN 1 YEAR OR FLEE-
ING PROSECUTION, CUSTODY, OR CONFINE-
MENT. 
(a) TITLE II AMENDMENTS.—Section 205(j)(2) of 
the Social Security Act (42 U.S.C. 405(j)(2)) is amend-
ed—
(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 person described in section 
202(x)(1)(A)(iv), and’’. 
(2) in subparagraph (C)(i)(II), by striking 
‘‘subparagraph (B)(i)(IV),,’’ and inserting ‘‘subpara-
graph 
(B)(i)(VI)’’ 
and 
striking 
‘‘section
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 person described in section 
202(x)(1)(A)(iv).’’. 
(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:
‘‘(D) obtain information concerning wheth-
er such person has been convicted of any other 
offense under Federal or State law which re-
sulted in imprisonment for more than 1 year; 
‘‘(E) obtain information concerning wheth-
er such person is a person 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 a person described in 
section 804(a)(2).’’. 
(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 person described in section 
1611(e)(4)(A); 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)—
(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) the person has previously been convicted 
as described in clause (ii)(IV) of this subparagraph, 
unless the Commissioner determines that the pay-
ment would be appropriate notwithstanding the con-
viction; or 
‘‘(V) such person is a person described in sec-
tion 1611(e)(4)(A).’’. 
(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 
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’’. 
(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 of Social Security or a court of 
competent jurisdiction makes the determination of misuse 
after 180 days after the date of the enactment of this Act. 
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) 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 
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) and the amount 
certified for payment under paragraph (5) may not exceed 
the total benefit amount misused by the representative 
payee with respect to such individual.’’. 
(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 a qualified 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 
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 qualified indi-
vidual or such qualified individual’s alternative rep-
resentative payee. 
‘‘(2) LIMITATION.—The total of the amount 
paid to such individual or such individual’s alter-
native representative payee under paragraph (1) and 
the amount paid under subsection (i) may not ex-
ceed the total benefit amount misused by the rep-
resentative 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(b)(3)) 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-
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) 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 of Social Security or a court of competent jurisdic-
tion makes the determination of misuse after 180 days 
after the date of the enactment of this Act. 
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—
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 
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 
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, 
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, 
or
‘‘(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, 
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; 
(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 XVI that the 
person knows or should know is false or misleading, 
‘‘(2) makes such a statement or representation 
for such use with knowing disregard for the truth, 
or 
‘‘(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 
XVI, if the person knows, or should know, that the 
statement or representation with such omission is 
false or misleading or that the withholding of such 
disclosure is misleading, 
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.—
(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 date on which the Commissioner imple-
ments the centralized computer file described in section 
202.
SEC. 202. ISSUANCE BY COMMISSIONER OF SOCIAL SECU-
RITY OF RECEIPTS TO ACKNOWLEDGE SUB-
MISSION OF REPORTS OF CHANGES IN WORK 
OR EARNINGS STATUS OF DISABLED BENE-
FICIARIES. 
Effective as soon as possible, but not later than 1 
year after the date of the enactment of this Act, until such 
time as the Commissioner of Social Security implements 
a centralized computer file recording the date of the sub-
mission of information by a disabled beneficiary (or rep-
resentative) regarding a change in the beneficiary’s work 
or earnings status, the Commissioner shall issue a receipt 
to the disabled beneficiary (or representative) each time 
he or she submits documentation, or otherwise reports to 
the Commissioner, on a change in such status. 
SEC. 203. DENIAL OF TITLE II BENEFITS TO PERSONS FLEE-
ING PROSECUTION, CUSTODY, OR CONFINE-
MENT, AND TO PERSONS VIOLATING PROBA-
TION OR PAROLE. 
(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: 
‘‘(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 
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 the first day of 
the first month that begins on or after the date that is 
9 months after the date of the enactment of this Act, the 
Commissioner of Social Security shall promulgate regula-
tions 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)). 
(c) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect on the first day of the first 
month that begins on or after the date that is 9 months 
after the date of the enactment of this Act. 
SEC. 204. 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—
(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 the con-
tent of such notice and its placement, visibility, and 
legibility. 
‘‘(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 
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 
Security promulgates final regulations prescribing the 
standards applicable to the notice required to be provided 
in connection with such offer. The Commissioner shall 
promulgate such final regulations within 1 year after the 
date of the enactment of this Act. 
SEC. 205. 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, after due notice and 
opportunity for hearing, (A) may refuse to recognize as 
a representative, and may disqualify a representative al-
ready recognized, any attorney who has been disbarred or 
suspended from any court or bar to which he or she was 
previously admitted to practice or who has been disquali-
fied from participating in or appearing before any Federal 
program or agency, and (B) may refuse to recognize, and 
may disqualify, as a non-attorney representative any attor-
ney who has been disbarred or suspended from any court 
or bar to which he or she was previously admitted to prac-
tice. A representative who has been disqualified or sus-
pended pursuant to this section from appearing before the 
Social Security Administration as a result of collecting or 
receiving a fee in excess of the amount authorized shall 
be barred from appearing before the Social Security Ad-
ministration as a representative until full restitution is 
made to the claimant and, thereafter, may be considered 
for reinstatement only under such rules as the Commis-
sioner may prescribe.’’.
SEC. 206. 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 
1129A the following new section: 
‘‘ATTEMPTS TO INTERFERE WITH ADMINISTRATION OF 
SOCIAL SECURITY ACT 
‘‘SEC. 1129B. Whoever corruptly or by force or 
threats of force (including any threatening letter or com-
munication) attempts to intimidate or impede any officer, 
employee, or contractor of the Social Security Administra-
tion (including any State employee of a disability deter-
mination service or any other individual designated by the 
Commissioner of Social Security) acting in an official ca-
pacity to carry out a duty under this Act, or in any other 
way corruptly or by force or threats of force (including 
any threatening letter or communication) obstructs or im-
pedes, or attempts to obstruct or impede, the due adminis-
tration 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 contractor of
the Social Security Administration, or to a member of the 
family of such an officer or employee or contractor.’’. 
SEC. 207. 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 
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.
SEC. 208. DISQUALIFICATION FROM PAYMENT DURING 
TRIAL WORK PERIOD UPON CONVICTION OF 
FRAUDULENT CONCEALMENT OF WORK AC-
TIVITY. 
(a) IN GENERAL.—Section 222(c) of the Social Secu-
rity Act (42 U.S.C. 422(c)) is amended by adding at the 
end the following new paragraph: 
‘‘(5) Upon conviction by a Federal court that an indi-
vidual has fraudulently concealed work activity during a 
period of trial work from the Commissioner of Social Secu-
rity by—
‘‘(A) providing false information to the Com-
missioner of Social Security as to whether the indi-
vidual had earnings in or for a particular period, or 
as to the amount thereof; 
‘‘(B) receiving disability insurance benefits 
under this title while engaging in work activity 
under another identity, including under another so-
cial security account number or a number pur-
porting to be a social security account number; or 
‘‘(C) taking other actions to conceal work activ-
ity with an intent fraudulently to secure payment in 
a greater amount than is due or when no payment 
is authorized, 
no benefit shall be payable to such individual under this 
title with respect to a period of disability for any month
before such conviction during which the individual ren-
dered services during the period of trial work with respect 
to which the fraudulently concealed work activity occurred, 
and amounts otherwise due under this title as restitution, 
penalties, assessments, fines, or other repayments shall in 
all cases be in addition to any amounts for which such 
individual is liable as overpayments by reason of such con-
cealment.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to work activity 
performed after the date of the enactment of this Act. 
SEC. 209. AUTHORITY FOR JUDICIAL ORDERS OF RESTITU-
TION. 
(a) AMENDMENTS TO TITLE II.—Section 208 of the 
Social Security Act (42 U.S.C. 408) is amended—
(1) by redesignating subsections (b), (c), and 
(d) as subsections (c), (d), and (e), respectively; and 
(2) by inserting after subsection (a) the fol-
lowing new subsection: 
‘‘(b)(1) Any Federal court, when sentencing a defend-
ant convicted of an offense under subsection (a), may 
order, in addition to or in lieu of any other penalty author-
ized by law, that the defendant make restitution to the 
Social Security Administration.
‘‘(2) Sections 3612, 3663, and 3664 of title 18, 
United States Code, shall apply with respect to the 
issuance and enforcement of orders of restitution under 
this subsection. In so applying such sections, the Social 
Security Administration shall be considered the victim. 
‘‘(3) If the court does not order restitution, or orders 
only partial restitution, under this subsection, the court 
shall state on the record the reasons therefor.’’. 
(b) AMENDMENTS TO TITLE VIII.—Section 807(i) of 
such Act (42 U.S.C. 1007(i)) is amended—
(1) by striking ‘‘(i) RESTITUTION.—In any case 
where’’ and inserting the following: 
‘‘(i) RESTITUTION.—
‘‘(1) IN GENERAL.—In any case where’’; and
(2) by adding at the end the following new 
paragraph: 
‘‘(2) COURT ORDER FOR RESTITUTION.—
‘‘(A) IN
GENERAL.—Any Federal court, 
when sentencing a defendant convicted of an of-
fense under subsection (a), may order, in addi-
tion to or in lieu of any other penalty author-
ized by law, that the defendant make restitution 
to the Social Security Administration. 
‘‘(B) 
RELATED
PROVISIONS.—Sections 
3612, 3663, and 3664 of title 18, United States
Code, shall apply with respect to the issuance 
and enforcement of orders of restitution under 
this paragraph. In so applying such sections, 
the Social Security Administration shall be con-
sidered the victim. 
‘‘(C) STATED REASONS FOR NOT ORDER-
ING RESTITUTION.—If the court does not order 
restitution, or orders only partial restitution, 
under this paragraph, the court shall state on 
the record the reasons therefor.’’. 
(c) AMENDMENTS TO TITLE XVI.—Section 1632 of 
such Act (42 U.S.C. 1383a) is amended—
(1) by redesignating subsection (b) as sub-
section (c); and 
(2) by inserting after subsection (a) the fol-
lowing new subsection: 
‘‘(b)(1) Any Federal court, when sentencing a defend-
ant convicted of an offense under subsection (a), may 
order, in addition to or in lieu of any other penalty author-
ized by law, that the defendant make restitution to the 
Social Security Administration. 
‘‘(2) Sections 3612, 3663, and 3664 of title 18, 
United States Code, shall apply with respect to the 
issuance and enforcement of orders of restitution under
this subsection. In so applying such sections, the Social 
Security Administration shall be considered the victim. 
‘‘(3) If the court does not order restitution, or orders 
only partial restitution, under this subsection, the court 
shall state on the record the reasons therefor.’’. 
(d) SPECIAL ACCOUNT FOR RECEIPT OF RESTITU-
TION PAYMENTS.—Section 704(b) of such Act (42 U.S.C. 
904(b)) is amended by adding at the end the following 
new paragraph: 
‘‘(3)(A) Except as provided in subparagraph (B), 
amounts received by the Social Security Administration 
pursuant to an order of restitution under section 208(b), 
807(i), or 1632(b) shall be credited to a special fund es-
tablished in the Treasury of the United States for 
amounts so received or recovered. The amounts so cred-
ited, to the extent and in the amounts provided in advance 
in appropriations Acts, shall be available to defray ex-
penses incurred in carrying out titles II, VIII, and XVI. 
‘‘(B) Subparagraph (A) shall not apply with respect 
to amounts received in connection with misuse by a rep-
resentative payee (within the meaning of sections 205(j), 
807, and 1631(a)(2)) of funds paid as benefits under title 
II, VIII, or XVI. Such amounts received in connection 
with misuse of funds paid as benefits under title II shall 
be transferred to the Managing Trustee of the Federal
Old-Age and Survivors Insurance Trust Fund or the Fed-
eral Disability Insurance Trust Fund, as determined ap-
propriate by the Commissioner of Social Security, and 
such amounts shall be deposited by the Managing Trustee 
into such Trust Fund. All other such amounts shall be 
deposited by the Commissioner into the general fund of 
the Treasury as miscellaneous receipts.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
subsections (a) and (b) shall apply with respect to viola-
tions occurring on or 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—
(1) by inserting ‘‘, except that the maximum 
amount of the assessment may not exceed the great-
er of $75 or the adjusted amount as provided pursu-
ant to the following two sentences’’ after ‘‘subpara-
graph (B)’’; and 
(2) by adding at the end the following new sen-
tence: ‘‘In the case of any calendar year beginning 
after the date of the enactment of the Social Secu-
rity Program Protection Act of 2003, the dollar 
amount specified in the preceding sentence (includ-
ing a previously adjusted amount) shall be adjusted 
annually under the procedures used to adjust benefit 
amounts under section 215(i)(2)(A)(ii), except such 
adjustment shall be based on the higher of $75 or 
the previously adjusted amount that would have 
been in effect for December of the preceding year, 
but for the rounding of such amount pursuant to the 
following sentence. Any amount so adjusted that is 
not a multiple of $10 shall be rounded to the next 
lowest multiple of $10, but in no case less than 
$75.’’. 
(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 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. 
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’; 
‘‘(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-
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 $75. In the case of any cal-
endar year beginning after the date of the enactment of 
the Social Security Program Protection Act of 2003, the 
dollar amount specified in the preceding sentence (includ-
ing a previously adjusted amount) shall be adjusted annu-
ally under the procedures used to adjust benefit amounts 
under section 215(i)(2)(A)(ii), except such adjustment 
shall be based on the higher of $75 or the previously ad-
justed amount that would have been in effect for Decem-
ber of the preceding year, but for the rounding of such 
amount pursuant to the following sentence. Any amount 
so adjusted that is not a multiple of $10 shall be rounded 
to the next lowest multiple of $10, but in no case less 
than $75.
‘‘(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 
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.—
(1) IN GENERAL.—The amendments made by 
this section shall apply with respect to fees for rep-
resentation 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. 
(2) SUNSET.—Such amendments shall not 
apply with respect to fees for representation of 
claimants in the case of any claim for benefits with 
respect to which the agreement for representation is 
entered into after 3 years after the date of the en-
actment of this Act. 
(c) STUDY
REGARDING
FEE-WITHHOLDING
FOR 
NON-ATTORNEY REPRESENTATIVES.—
(1) STUDY.—As soon as practicable after the 
date of the enactment of this Act, the Comptroller 
General of the United States shall undertake a study 
regarding fee-withholding for non-attorney rep-
resentatives representing claimants before the Social 
Security Administration. 
(2) MATTERS TO BE STUDIED.—In conducting 
the study under this subsection, the Comptroller 
General shall—
(A) compare the non-attorney representa-
tives who seek fee approval for representing 
claimants before the Social Security Adminis-
tration to attorney representatives who seek 
such fee approval, with regard to—
(i) their training, qualifications, and 
competency, 
(ii) the type and quality of services 
provided, and 
(iii) the extent to which claimants are 
protected through oversight of such rep-
resentatives by the Social Security Admin-
istration or other organizations, and 
(B) consider the potential results of ex-
tending to non-attorney representatives the fee 
withholding procedures that apply under titles 
II and XVI of the Social Security Act for the 
payment of attorney fees, including the effect 
on claimants and program administration. 
(3) REPORT.—Not later than 1 year after the 
date of the enactment of this Act, the Comptroller 
General shall submit to the Committee on Ways and 
Means of the House of Representatives and the 
Committee on Finance of the Senate a report detail-
ing the results of the Comptroller General’s study 
conducted pursuant to this subsection. 
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 
(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 
XVIII of the Social Security Act, as appropriate. Benefits 
payable to or on behalf of individuals by reason of partici-
pation in projects under this section shall be made from 
the Federal Disability Insurance Trust Fund and the Fed-
eral Old-Age and Survivors Insurance Trust Fund, as de-
termined appropriate by the Commissioner of Social Secu-
rity, 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 ben-
efits under such title II or 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; 
‘‘(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: 
‘‘(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’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply with respect to pay-
ments provided after the date of the enactment of 
this Act.
SEC. 405. TECHNICAL AMENDMENT CLARIFYING TREAT-
MENT FOR CERTAIN PURPOSES OF INDI-
VIDUAL WORK PLANS UNDER THE TICKET TO 
WORK AND SELF-SUFFICIENCY PROGRAM. 
(a) IN GENERAL.—Section 1148(g)(1) of the Social 
Security Act (42 U.S.C. 1320b–19) is amended by adding 
at the end, after and below subparagraph (E), the fol-
lowing new sentence: 
‘‘An individual work plan established pursuant to 
this subsection shall be treated, for purposes of sec-
tion 51(d)(6)(B)(i) of the Internal Revenue Code of 
1986, as an individualized written plan for employ-
ment under a State plan for vocational rehabilitation 
services approved under the Rehabilitation Act of 
1973.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect as if included in section 
505 of the Ticket to Work and Work Incentives Improve-
ment Act of 1999 (Public Law 106–170; 113 Stat. 1921). 
Subtitle B—Miscellaneous 
Amendments 
SEC. 411. ELIMINATION OF TRANSCRIPT REQUIREMENT IN 
REMAND CASES FULLY FAVORABLE TO THE 
CLAIMANT. 
(a) IN GENERAL.—Section 205(g) of the Social Secu-
rity Act (42 U.S.C. 405(g)) is amended in the sixth sen-
tence by striking ‘‘and a transcript’’ and inserting ‘‘and, 
in any case in which the Commissioner has not made a 
decision fully favorable to the individual, a transcript’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply with respect to final determina-
tions issued (upon remand) on or after the date of the 
enactment of this Act. 
SEC. 412. NONPAYMENT OF BENEFITS UPON REMOVAL 
FROM THE UNITED STATES. 
(a) IN GENERAL.—Paragraphs (1) and (2) of section 
202(n) of the Social Security Act (42 U.S.C. 402(n)(1), 
(2)) are each amended by striking ‘‘or (1)(E)’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section to section 202(n)(1) of the Social Security Act 
shall apply to individuals with respect to whom the Com-
missioner of Social Security receives a removal notice from 
the Attorney General after the date of the enactment of 
this Act. The amendment made by this section to section 
202(n)(2) of the Social Security Act shall apply with re-
spect to removals occurring after the date of the enact-
ment of this Act. 
SEC. 413. REINSTATEMENT OF CERTAIN REPORTING RE-
QUIREMENTS. 
Section 3003(a)(1) of the Federal Reports Elimi-
nation and Sunset Act of 1995 (31 U.S.C. 1113 note)
shall not apply to any report required to be submitted 
under any of the following provisions of law: 
(1)(A) Section 201(c)(2) of the Social Security 
Act (42 U.S.C. 401(c)(2)). 
(B) Section 1817(b)(2) of the Social Security 
Act (42 U.S.C. 1395i(b)(2)). 
(C) Section 1841(b)(2) of the Social Security 
Act (42 U.S.C. 1395t(b)(2)). 
(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 
paragraph: 
‘‘(2) The requirements of paragraph (1)(E) in con-
nection with the surviving wife of an individual shall be 
treated 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 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 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 
paragraph: 
‘‘(2) The requirements of paragraph (1)(E) in con-
nection 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 hus-
band due to mental incompetence or similar inca-
pacity, 
‘‘(C) during the period of the prior husband’s 
institutionalization, the individual would have di-
vorced the prior husband and married the surviving 
husband, 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 domi-
ciled 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 benefits under title II of the Social Security Act filed 
during months ending after the date of the enactment of 
this Act.