II 
Calendar No. 349
108TH CONGRESS 
1ST SESSION 
H. R. 743
[Report No. 108–176] 
IN THE SENATE OF THE UNITED STATES 
APRIL 3, 2003
Received; read twice and referred to the Committee on Finance 
OCTOBER 29, 2003
Reported by Mr. GRASSLEY, with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
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.
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
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)) (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 
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’’. 
(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-