IIB 
108TH CONGRESS 
1ST SESSION 
H. R. 743
IN THE SENATE OF THE UNITED STATES 
APRIL 3, 2003
Received; read twice and referred to the Committee on Finance 
AN ACT 
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.
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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.
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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.
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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
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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)) (as 
amended by section 209(b)(1) of this Act) is amend-
ed further by inserting after the first sentence the 
following new sentences: ‘‘In any case in which a 
representative payee that—
‘‘(A) is not an individual; or 
‘‘(B) is an individual who, for any month 
during a period when misuse occurs, serves 15 
or more individuals who are beneficiaries under
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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 So-
cial Security shall pay 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 limi-
tations 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’’.
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(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;
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(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
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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))’’;
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(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.’’.
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(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:
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‘‘(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
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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-
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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
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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
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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