In the Senate of the United States,
November 18, 2002.
Resolved, That the bill from the House of Representa-
tives (H.R. 4070) entitled ‘‘An Act to amend the Social Secu-
rity Act and the Internal Revenue Code of 1986 to provide
additional safeguards for Social Security and Supplemental
Security Income beneficiaries with representative payees, to
enhance program protections, and for other purposes.’’, do
pass with the following
AMENDMENT:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the ‘‘So-
cial Security Program Protection Act of 2002’’.
†
HR 4070 EAS
(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, of persons fleeing prosecution, custody, or confinement, and
of persons violating probation or parole.
Sec. 104. Fee forfeiture in case of benefit misuse by representative payees.
Sec. 105. Liability of representative payees for misused benefits.
Sec. 106. Authority to redirect delivery of benefit payments when a representative
payee fails to provide required accounting.
Subtitle B—Enforcement
Sec. 111. Civil monetary penalty authority with respect to wrongful conversions
by representative payees.
TITLE II—PROGRAM PROTECTIONS
Sec. 201. Issuance by Commissioner of Social Security of receipts to acknowledge
submission of reports of changes in work or earnings status of
disabled beneficiaries.
Sec. 202. Denial of title II benefits to persons fleeing prosecution, custody, or con-
finement, and to persons violating probation or parole.
Sec. 203. Requirements relating to offers to provide for a fee a product or service
available without charge from the Social Security Administra-
tion.
Sec. 204. Refusal to recognize certain individuals as claimant representatives.
Sec. 205. Penalty for corrupt or forcible interference with administration of So-
cial Security Act.
Sec. 206. Use of symbols, emblems, or names in reference to social security or
medicare.
Sec. 207. Disqualification from payment during trial work period upon convic-
tion of fraudulent concealment of work activity.
TITLE III—ATTORNEY FEE PAYMENT SYSTEM IMPROVEMENTS
Sec. 301. Cap on attorney assessments.
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.
†
HR 4070 EAS
Sec. 402. Expansion of waiver authority available in connection with demonstra-
tion projects providing for reductions in disability insurance
benefits based on earnings.
Sec. 403. Funding of demonstration projects provided for reductions in disability
insurance benefits based on earnings.
Sec. 404. Availability of Federal and State work incentive services to additional
individuals.
Sec. 405. Technical amendment clarifying treatment for certain purposes of indi-
vidual work plans under the Ticket to Work and Self-Sufficiency
Program.
Subtitle B—Miscellaneous Amendments
Sec. 411. Elimination of transcript requirement in remand cases fully favorable
to the claimant.
Sec. 412. Nonpayment of benefits upon removal from the United States.
Sec. 413. Reinstatement of certain reporting requirements.
Sec. 414. Clarification of definitions regarding certain survivor benefits.
Sec. 415. Clarification respecting the FICA and SECA tax exemptions for an in-
dividual whose earnings are subject to the laws of a totalization
agreement partner.
Sec. 416. Coverage under divided retirement system for public employees in Ken-
tucky.
Sec. 417. Compensation for the Social Security Advisory Board.
Sec. 418. 60-month period of employment requirement for application of govern-
ment 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.
Sec. 426. Technical amendments relating to the Railroad Retirement and Sur-
vivors Improvement Act of 2001.
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
†
HR 4070 EAS
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 titles;
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 benefits
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 pay-
ment, or any part thereof, to a use other than for the use
†
HR 4070 EAS
and benefit of such other person. The Commissioner of So-
cial 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 add-
ing 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
†
HR 4070 EAS
case in which the representative payee receives payment
under this title for the use and benefit of another qualified
individual under this title and converts such payment, or
any part thereof, to a use other than for the use and benefit
of such other qualified individual. The Commissioner of So-
cial 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 in-
serting ‘‘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 rep-
resentative 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 dur-
ing a period when misuse occurs, serves 15 or more
individuals who are beneficiaries under this title, title
II, title VIII, or any combination of such titles;
†
HR 4070 EAS
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 subparagraph 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 individual’s
(or spouse’s) income for purposes of this title as res-
titution 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.’’.
†
HR 4070 EAS
(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 Commissioner 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 rep-
resentative payee with respect to which the Commissioner
makes the determination of misuse on or after January 1,
1995.
SEC. 102. OVERSIGHT OF REPRESENTATIVE PAYEES.
(a) CERTIFICATION OF BONDING AND LICENSING RE-
QUIREMENTS
FOR NONGOVERNMENTAL ORGANIZATIONAL
REPRESENTATIVE PAYEES.—
(1) TITLE II AMENDMENTS.—Section 205(j) of
the Social Security Act (42 U.S.C. 405(j)) is
amended—
†
HR 4070 EAS
(A) in paragraph (2)(C)(v), by striking ‘‘a
community-based nonprofit social service agency
licensed or bonded by the State’’ in subclause (I)
and inserting ‘‘a certified community-based non-
profit social service agency (as defined in para-
graph (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 para-
graph (9))’’;
(C) in paragraph (4)(B), by striking ‘‘any
community-based nonprofit social service agency
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 ‘certified
community-based nonprofit social service agency’ means a
community-based nonprofit social service agency which is
in compliance with requirements, under regulations which
†
HR 4070 EAS
shall be prescribed by the Commissioner, for annual certifi-
cation to the Commissioner that it is bonded in accordance
with requirements specified by the Commissioner and that
it is licensed in each State in which it serves as a represent-
ative payee (if licensing is available in such State) in ac-
cordance 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 certification.’’.
(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 defined
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
†
HR 4070 EAS
subparagraph (I)), if the agency, in accord-
ance’’;
(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 ‘certified
community-based nonprofit social service agency’ means a
community-based nonprofit social service agency which is
in compliance with requirements, under regulations which
shall be prescribed by the Commissioner, for annual certifi-
cation to the Commissioner that it is bonded in accordance
with requirements specified by the Commissioner and that
it is licensed in each State in which it serves as a represent-
ative payee (if licensing is available in the State) in accord-
ance with requirements specified by the Commissioner. Any
such annual certification shall include a copy of any inde-
pendent audit on the agency which may have been per-
formed since the previous certification.’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall take effect on the first day of
†
HR 4070 EAS
the thirteenth month beginning after the date of en-
actment 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 represent-
ative 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 payable
under title VIII or title XVI) to another individual pursu-
ant to the appointment of such person or agency as a rep-
resentative payee under this subsection, section 807, or sec-
tion 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
†
HR 4070 EAS
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 Com-
mittee on Finance of the Senate a report on the results of
periodic onsite reviews conducted during the fiscal year
pursuant to subparagraph (A) 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 such re-
views 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 represent-
ative 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 ven-
dor, or a similar irregularity;
‘‘(v) the number of cases discovered in which
there was a misuse of funds;
†
HR 4070 EAS
‘‘(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 Commis-
sioner of Social Security may otherwise conduct, the Com-
missioner 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 payable
under title II or title XVI) to another individual pursuant
to the appointment of such person or agency as a represent-
ative 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
†
HR 4070 EAS
‘‘(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 Com-
mittee on Finance of the Senate a report on the results of
periodic onsite reviews conducted during the fiscal year
pursuant to paragraph (1) and of any other reviews of rep-
resentative payees conducted during such fiscal year in con-
nection with benefits under this title. Each such report
shall describe in detail all problems identified in such re-
views 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 represent-
ative 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 ven-
dor, or a similar irregularity;
‘‘(E) the number of cases discovered in which
there was a misuse of funds;
†
HR 4070 EAS
‘‘(F) how any such cases of misuse of funds were
dealt with by the Commissioner;
‘‘(G) the final disposition of such cases of misuse
of funds, including any criminal penalties imposed;
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 follows:
‘‘(G)(i) In addition to such other reviews of representa-
tive 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 combina-
tion with benefits payable under title II or title VIII) to
another individual pursuant to the appointment of the per-
son or agency as a representative payee under this para-
graph, 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 com-
munity-based nonprofit social service agency (as de-
†
HR 4070 EAS
fined in subparagraph (I) of this paragraph or sec-
tion 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 Com-
mittee on Finance of the Senate a report on the results of
periodic onsite reviews conducted during the fiscal year
pursuant to clause (i) and of any other reviews of represent-
ative payees conducted during such fiscal year in connec-
tion with benefits under this title. Each such report shall
describe in detail all problems identified in the reviews 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
†
HR 4070 EAS
an allegation of misuse of funds, failure to pay a ven-
dor, 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.’’.
SEC. 103. DISQUALIFICATION FROM SERVICE AS REP-
RESENTATIVE 
PAYEE 
OF 
PERSONS 
CON-
VICTED OF OFFENSES RESULTING IN IMPRIS-
ONMENT FOR MORE THAN 1 YEAR, OF PER-
SONS FLEEING PROSECUTION, CUSTODY, OR
CONFINEMENT, AND OF PERSONS VIOLATING
PROBATION OR PAROLE.
(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 sub-
clause (VI); and
†
HR 4070 EAS
(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 clause (iv) or (v) of
section 202(x)(1)(A), and’’.
(2) in subparagraph (C)(i)(II), by striking ‘‘sub-
paragraph (B)(i)(IV),,’’ and inserting ‘‘subparagraph
(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 subclause
(II);
(B) by striking the period at the end of sub-
clause (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
†
HR 4070 EAS
would be appropriate notwithstanding such convic-
tion, or
‘‘(V) such person is person described in clause
(iv) or (v) of section 202(x)(1)(A).’’.
(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 whether
such person has been convicted of any other of-
fense under Federal or State law which resulted
in imprisonment for more than 1 year;
‘‘(E) obtain information concerning whether
such person is a person described in paragraph
(2) or (3) of section 804(a); 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 sub-
paragraph (C) and inserting a semicolon; and
†
HR 4070 EAS
(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 pay-
ment would be appropriate notwithstanding such
conviction; or
‘‘(E) such person is a person described in
paragraph (2) or (3) of section 804(a).’’.
(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 sub-
clause (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 imprisonment
for more than 1 year;
‘‘(V) obtain information concerning whether such
person is a person described in section 1611(e)(4);
and’’;
†
HR 4070 EAS
(2) in clause (iii)(II)—
(A) by striking ‘‘clause (ii)(IV)’’ and insert-
ing ‘‘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 subclause
(II);
(B) by striking the period at the end of sub-
clause (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, un-
less the Commissioner determines that the payment
would be appropriate notwithstanding the conviction;
or
‘‘(V) such person is a person described in section
1611(e)(4).’’.
(d) EFFECTIVE DATE.—The amendments made by this
section shall take effect on the first day of the thirteenth
month beginning after the date of enactment of this Act.
(e) REPORT TO CONGRESS.—The Commissioner of So-
cial Security, in consultation with the Inspector General
†
HR 4070 EAS
of the Social Security Administration, shall prepare a re-
port evaluating whether the existing procedures and reviews
for the qualification (including disqualification) of rep-
resentative payees are sufficient to enable the Commissioner
to protect benefits from being misused by representative
payees. The Commissioner shall submit the report to the
Committee on Ways and Means of the House of Representa-
tives and the Committee on Finance of the Senate no later
than 270 days after the date of enactment of this Act. The
Commissioner shall include in such report any rec-
ommendations that the Commissioner considers appro-
priate.
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 in-
serting ‘‘Except as provided in the next sentence, a’’;
and
(2) in the second sentence, by striking ‘‘The Sec-
retary’’ 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-
†
HR 4070 EAS
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 Commissioner’’.
(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 in-
serting ‘‘Except as provided in the next sentence, a’’;
and
(2) in the second sentence, by striking ‘‘The
Commissioner’’ and inserting the following: ‘‘A quali-
fied organization may not collect a fee from an indi-
vidual for any month with respect to which the Com-
missioner of Social Security or a court of competent
jurisdiction has determined that the organization
misused all or part of the individual’s benefit, and
any amount so collected by the qualified organization
for such month shall be treated as a misused part of
the individual’s benefit for purposes of subparagraphs
(E) and (F). The Commissioner’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall apply to any month involving benefit misuse
by a representative payee in any case with respect to which
†
HR 4070 EAS
the Commissioner of Social Security or a court of competent
jurisdiction makes the determination of misuse after De-
cember 31, 2002.
SEC. 105. LIABILITY OF REPRESENTATIVE PAYEES FOR MIS-
USED BENEFITS.
(a) TITLE II AMENDMENTS.—Section 205(j) of the So-
cial Security Act (42 U.S.C. 405(j)) (as amended by sec-
tions 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 represent-
ative payee that is not a Federal, State, or local government
agency has misused all or part of an individual’s benefit
that was paid to such representative payee under this sub-
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 overpay-
†
HR 4070 EAS
ment 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 subparagraph
(B), upon recovering all or any part of such amount, the
Commissioner shall certify an amount equal to the recov-
ered amount for payment to such individual or such indi-
vidual’s alternative representative payee.
‘‘(B) The total of the amount certified for payment to
such individual or such individual’s alternative representa-
tive payee under subparagraph (A) and the amount cer-
tified 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
†
HR 4070 EAS
repaid by the representative payee) shall be treated as
an overpayment of benefits under this title to the rep-
resentative payee for all purposes of this Act and re-
lated laws pertaining to the recovery of such overpay-
ments. 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 individual or such qualified
individual’s alternative representative payee.
‘‘(2) LIMITATION.—The total of the amount paid
to such individual or such individual’s alternative
representative payee under paragraph (1) and the
amount paid under subsection (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 section
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 represent-
†
HR 4070 EAS
ative payee that is not a Federal, State, or local government
agency has misused all or part of an individual’s benefit
that was paid to the representative payee under this para-
graph, 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 overpay-
ment of benefits under this title to the representative 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 Commis-
sioner shall make payment of an amount equal to the recov-
ered amount to such individual or such individual’s alter-
native 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 rep-
resentative payee with respect to such individual.’’.
(d) EFFECTIVE DATE.—The amendments made by this
section shall apply to benefit misuse 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 December 31, 2002.
†
HR 4070 EAS
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 amended 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 sub-
paragraph (A) or (D) receiving payments on behalf of an-
other fails to submit a report required by the Commissioner
of Social Security under subparagraph (A) or (D), the
Commissioner may, after furnishing notice to such person
and the individual entitled to such payment, require that
such person appear in person at a field office of the Social
Security Administration serving the area in which the indi-
vidual resides in order to receive such payments.’’.
(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 EAS
‘‘(3) AUTHORITY
TO
REDIRECT
DELIVERY
OF
BENEFIT PAYMENTS WHEN A REPRESENTATIVE PAYEE
FAILS TO PROVIDE REQUIRED ACCOUNTING.—In any
case in which the person described in paragraph (1)
or (2) receiving benefit payments on behalf of a quali-
fied individual fails to submit a report required by
the Commissioner of Social Security under paragraph
(1) or (2), the Commissioner may, after furnishing
notice to such person and the qualified individual, re-
quire 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 resides 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 add-
ing 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 ap-
pear in person at a field office of the Social Security Ad-
†
HR 4070 EAS
ministration serving the area in which the individual re-
sides in order to receive such payments.’’.
(d) EFFECTIVE DATE.—The amendment made by this
section shall take effect 180 days after the date of 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 Secu-
rity 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 addi-
tion to any other penalties that may be prescribed by law,
a civil money penalty of not more than $5,000 for each
such conversion. Such person shall also be subject to an as-
sessment, in lieu of damages sustained by the United States
†
HR 4070 EAS
resulting from the conversion, of not more than twice the
amount of any payments so converted.’’.
(b) EFFECTIVE DATE.—The amendment made by this
section shall apply with respect to violations committed
after the date of enactment of this Act.
TITLE II—PROGRAM
PROTECTIONS
SEC. 201. 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 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 disabled beneficiary (or representative) re-
garding a change in the beneficiary’s work or earnings sta-
tus, 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.
†
HR 4070 EAS
SEC. 202. 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 Jersey, 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.
†
HR 4070 EAS
In the case of an individual from whom such monthly bene-
fits have been withheld pursuant to clause (iv), the Commis-
sioner may, for good cause shown, pay such withheld bene-
fits 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 offi-
cer, 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 information
as reasonably required by the Commissioner to establish the
unique identity of the beneficiary, and notifies the Commis-
sioner 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 duties;
and
†
HR 4070 EAS
‘‘(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 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 sub-
section (a)).
(c) EFFECTIVE DATE.—The amendments made by sub-
section (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 enactment of this Act.
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 Security
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 So-
†
HR 4070 EAS
cial 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 Adminis-
tration, 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 con-
nection 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 REF-
ERENCE’’ and inserting ‘‘PROHIBITIONS RELATING 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-
†
HR 4070 EAS
ards applicable to the notice required to be provided in con-
nection with such offer. The Commissioner shall promul-
gate such final regulations within 1 year after the date of
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 second
sentence the following: ‘‘Notwithstanding the preceding sen-
tences, the Commissioner, after due notice and opportunity
for hearing, (A) may refuse to recognize as a representative,
and may disqualify a representative already 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 disqualified 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 attorney who has been dis-
barred or suspended from any court or bar to which he or
she was previously admitted to practice. A representative
who has been disqualified or suspended pursuant to this sec-
tion from appearing before the Social Security Administra-
tion as a result of collecting or receiving a fee in excess
of the amount authorized shall be barred from appearing
before the Social Security Administration as a representa-
†
HR 4070 EAS
tive until full restitution is made to the claimant and,
thereafter, may be considered 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
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 communica-
tion) attempts to intimidate or impede any officer, em-
ployee, or contractor of the Social Security Administration
(including any State employee of a disability determina-
tion service or any other individual designated by the Com-
missioner of Social Security) acting in an official capacity
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 impedes,
or attempts 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
†
HR 4070 EAS
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 Ad-
ministration, or to a member of the family of such an officer
or employee or contractor.’’.
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 Se-
curity Act (42 U.S.C. 1320b–10(a)(1)) is amended—
(1) in subparagraph (A), by inserting ‘‘ ‘Centers
for Medicare & Medicaid Services’,’’ after ‘‘ ‘Health
Care Financing Administration’,’’, by striking ‘‘or
‘Medicaid’, ’’ and inserting ‘‘ ‘Medicaid’, ‘Death Ben-
efits Update’, ‘Federal Benefit Information’, ‘Funeral
Expenses’, or ‘Final Supplemental Plan’,’’ and by in-
serting ‘‘ ‘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,’’.
†
HR 4070 EAS
(b) EFFECTIVE DATE.—The amendments made by this
section shall apply to items sent after 180 days after the
date of enactment of this Act.
SEC. 207. 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 Commis-
sioner of Social Security as to whether the individual
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 social secu-
rity account number or a number purporting 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
†
HR 4070 EAS
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 rendered
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 indi-
vidual is liable as overpayments by reason of such conceal-
ment.’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply with respect to work activity per-
formed 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 greater
of $75 or the adjusted amount as provided pursuant
†
HR 4070 EAS
to the following two sentences’’ after ‘‘subparagraph
(B)’’; and
(2) by adding at the end the following new sen-
tence: ‘‘In the case of any calendar year beginning
after 2003, the dollar amount specified in the pre-
ceding sentence (including a previously adjusted
amount) shall be adjusted annually under the proce-
dures 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 amendment made by this
section shall apply with respect to fees for representation
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 enactment of this Act.
†
HR 4070 EAS
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 insert-
ing ‘‘initiated under subsection (a) on or before De-
cember 17, 2004’’; and
(2) in subsection (d)(2), by amending the first
sentence to read as follows: ‘‘The authority to initiate
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 Incen-
tives Improvement Act of 1999 (42 U.S.C. 434 note) is
†
HR 4070 EAS
amended by striking ‘‘(42 U.S.C. 401 et seq.),’’ and insert-
ing ‘‘(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 Incen-
tives 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 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 appro-
priate by the Commissioner of Social Security, and from
the Federal Hospital Insurance Trust Fund and the Federal
Supplementary Medical Insurance Trust Fund, as deter-
mined appropriate by the Secretary of Health and Human
Services, from funds available for benefits under such title
II or XVIII.’’.