†
HR 743 EAS
individual described in such subparagraph (B))
or the performance as a crewman (in the case of
an individual described in such subparagraph
(D)), and
‘‘(C) the business engaged in or service as a
crewman performed is within the scope of the
terms of such individual’s admission to the
United States.’’.
(b) DISABILITY BENEFITS.—Section 223(a)(1) of the
Social Security Act (42 U.S.C. 423(a)(1)) is amended—
(1) by redesignating subparagraphs (C) and (D)
as subparagraphs (D) and (E), respectively; and
(2) by inserting after subparagraph (B), the fol-
lowing:
‘‘(C) if not a United States citizen or national—
‘‘(i) has been assigned a social security ac-
count number that was, at the time of assign-
ment, or at any later time, consistent with the
requirements of subclause (I) or (III) of section
205(c)(2)(B)(i); or
‘‘(ii) at the time any quarters of coverage
are earned—
‘‘(I) is described in subparagraph (B)
or (D) of section 101(a)(15) of the Immigra-
tion and Nationality Act,
†
HR 743 EAS
‘‘(II) is lawfully admitted temporarily
to the United States for business (in the
case of an individual described in such sub-
paragraph (B)) or the performance as a
crewman (in the case of an individual de-
scribed in such subparagraph (D)), and
‘‘(III) the business engaged in or serv-
ice as a crewman performed is within the
scope of the terms of such individual’s ad-
mission to the United States.’’.
(c) EFFECTIVE DATE.—The amendments made by this
section apply to benefit applications based on social secu-
rity account numbers issued on or after January 1, 2004.
TITLE 
III—ATTORNEY 
REP-
RESENTATIVE FEE PAYMENT
SYSTEM IMPROVEMENTS
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
to the following two sentences’’ after ‘‘subparagraph
(B)’’; and
†
HR 743 EAS
(2) by adding at the end the following: ‘‘In the
case of any calendar year beginning after the amend-
ments made by section 301 of the Social Security
Protection Act of 2003 take effect, the dollar amount
specified in the preceding sentence (including a pre-
viously 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 $1
shall be rounded to the next lowest multiple of $1, but
in no case less than $75.’’.
(b) EFFECTIVE DATE.—The amendments 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 the enactment of this Act.
SEC. 302. TEMPORARY EXTENSION OF ATTORNEY FEE PAY-
MENT SYSTEM TO TITLE XVI CLAIMS.
(a) IN GENERAL.—Section 1631(d)(2) of the Social Se-
curity Act (42 U.S.C. 1383(d)(2)) is amended—
†
HR 743 EAS
(1) in subparagraph (A), in the matter preceding
clause (i)—
(A) by striking ‘‘section 206(a)’’ and insert-
ing ‘‘section 206’’;
(B) by striking ‘‘(other than paragraph (4)
thereof)’’ and inserting ‘‘(other than subsections
(a)(4) and (d) thereof)’’; and
(C) by striking ‘‘paragraph (2) thereof’’ and
inserting ‘‘such section’’;
(2) in subparagraph (A)(i)—
(A) 
by 
striking 
‘‘in 
subparagraphs
(A)(ii)(I) and (C)(i),’’ and inserting ‘‘in sub-
paragraphs (A)(ii)(I) and (D)(i) of subsection
(a)(2)’’; and
(B) 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 ‘paragraph (7)(A) or
(8)(A) of section 1631(a) or the requirements of due
process of law’ for the phrase ‘subsection (g) or (h) of
section 223’;
‘‘(iii) by substituting, in subsection (a)(2)(C)(i),
the phrase ‘under title II’ for the phrase ‘under title
XVI’;
†
HR 743 EAS
‘‘(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 cer-
tified for payment’; and
‘‘(v) by substituting, in subsection (b)(1)(B)(ii),
the phrase ‘deemed to be such amounts as determined
before any applicable reduction under section 1631(g),
and reduced by the amount of any reduction in bene-
fits under this title or title II made pursuant to sec-
tion 1127(a)’ for the phrase ‘determined before any
applicable reduction under section 1127(a))’.’’; and
(4) by redesignating subparagraph (B) as sub-
paragraph (D) and inserting after subparagraph (A)
the following:
‘‘(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 attorney,
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 ex-
ceed 25 percent of such past-due benefits (as deter-
mined before any applicable reduction under section
1631(g) and reduced by the amount of any reduction
†
HR 743 EAS
in benefits under this title or title II pursuant to sec-
tion 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 im-
pose on the attorney an assessment calculated in accordance
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 required
to be paid by subparagraph (B) before the application 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 calendar year begin-
ning after the amendments made by section 302 of the So-
cial Security Protection Act of 2003 take effect, the dollar
amount specified in the preceding sentence (including 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
†
HR 743 EAS
preceding year, but for the rounding of such amount pursu-
ant to the following sentence. Any amount so adjusted that
is not a multiple of $1 shall be rounded to the next lowest
multiple of $1, but in no case less than $75.
‘‘(II) The percentage specified in this subclause is such
percentage rate as the Commissioner determines is nec-
essary in order to achieve full recovery of the costs of deter-
mining 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 bene-
fits.
‘‘(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 sub-
paragraph shall be deposited as miscellaneous receipts in
the general fund of the Treasury.
‘‘(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 author-
†
HR 743 EAS
ized to remain available until expended, for administrative
expenses in carrying out this title and related laws.’’.
(b) CONFORMING AMENDMENTS.—Section 1631(a) of
the Social Security Act (42 U.S.C. 1383(a)) is amended—
(1) in paragraph (2)(F)(i)(II), by inserting
‘‘and payment of attorney fees under subsection
(d)(2)(B)’’ after ‘‘subsection (g)’’; and
(2) in paragraph (10)(A)—
(A) in the matter preceding clause (i), by
inserting ‘‘and payment of attorney fees under
subsection (d)(2)(B)’’ after ‘‘subsection (g)’’; and
(B) in the matter following clause (ii), by
inserting ‘‘and payment of attorney fees under
subsection (d)(2)(B)’’ after ‘‘State’’.
(c) 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
paid under section 1631(d)(2) of the Social Security
Act on or after the date of the submission by the Com-
missioner of Social Security to each House of Con-
gress pursuant to section 303(d) of this Act of written
notice of completion of full implementation of the re-
quirements for operation of the demonstration project
under section 303 of this Act.
†
HR 743 EAS
(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 5 years after the date described in paragraph
(1).
SEC. 303. NATIONWIDE DEMONSTRATION PROJECT PRO-
VIDING 
FOR 
EXTENSION 
OF 
FEE 
WITH-
HOLDING PROCEDURES TO NON-ATTORNEY
REPRESENTATIVES.
(a) IN GENERAL.—The Commissioner of Social Secu-
rity (hereafter in this section referred to as the ‘‘Commis-
sioner’’) shall develop and carry out a nationwide dem-
onstration project under this section with respect to agents
and other persons, other than attorneys, who represent
claimants under titles II and XVI of the Social Security
Act before the Commissioner. The demonstration project
shall be designed to determine the potential results of ex-
tending to such representatives the fee withholding proce-
dures and assessment procedures that apply under sections
206 and section 1631(d)(2) of such Act to attorneys seeking
direct payment out of past due benefits under such titles
and shall include an analysis of the effect of such extension
on claimants and program administration.
†
HR 743 EAS
(b) STANDARDS FOR INCLUSION IN DEMONSTRATION
PROJECT.—Fee-withholding procedures may be extended
under the demonstration project carried out pursuant to
subsection (a) to any non-attorney representative only if
such representative meets at least the following pre-
requisites:
(1) The representative has been awarded a bach-
elor’s degree from an accredited institution of higher
education, or has been determined by the Commis-
sioner to have equivalent qualifications derived from
training and work experience.
(2) The representative has passed an examina-
tion, written and administered by the Commissioner,
which tests knowledge of the relevant provisions of the
Social Security Act and the most recent developments
in agency and court decisions affecting titles II and
XVI of such Act.
(3) The representative has secured professional
liability insurance, or equivalent insurance, which the
Commissioner has determined to be adequate to pro-
tect claimants in the event of malpractice by the rep-
resentative.
(4) The representative has undergone a criminal
background check to ensure the representative’s fitness
to practice before the Commissioner.
†
HR 743 EAS
(5) The representative demonstrates ongoing
completion of qualified courses of continuing edu-
cation, including education regarding ethics and pro-
fessional conduct, which are designed to enhance pro-
fessional knowledge in matters related to entitlement
to, or eligibility for, benefits based on disability under
titles II and XVI of such Act. Such continuing edu-
cation, and the instructors providing such education,
shall meet such standards as the Commissioner may
prescribe.
(c) ASSESSMENT OF FEES.—
(1) IN GENERAL.—The Commissioner may assess
representatives reasonable fees to cover the cost to the
Social Security Administration of administering the
prerequisites described in subsection (b).
(2) DISPOSITION OF FEES.—Fees collected under
paragraph (1) shall be credited to the Federal Old-Age
and Survivors Insurance Trust Fund and the Federal
Disability Insurance Trust Fund, or deposited as
miscellaneous receipts in the general fund of the
Treasury, based on such allocations as the Commis-
sioner of Social Security determines appropriate.
(3) AUTHORIZATION OF APPROPRIATIONS.—The
fees authorized under this subparagraph shall be col-
lected and available for obligation only to the extent
†
HR 743 EAS
and in the amount provided in advance in appro-
priations Acts. Amounts so appropriated are author-
ized to remain available until expended for admin-
istering the prerequisites described in subsection (b).
(d) NOTICE TO CONGRESS AND APPLICABILITY OF FEE
WITHHOLDING PROCEDURES.—Not later than 1 year after
the date of enactment of this Act, the Commissioner shall
complete such actions as are necessary to fully implement
the requirements for full operation of the demonstration
project and shall submit to each House of Congress a writ-
ten notice of the completion of such actions. The applica-
bility under this section to non-attorney representatives of
the fee withholding procedures and assessment procedures
under sections 206 and 1631(d)(2) of the Social Security
Act shall be effective with respect to fees for representation
of claimants in the case of claims for benefits with respect
to which the agreement for representation is entered into
by such non-attorney representatives during the period be-
ginning with the date of the submission of such notice by
the Commissioner to Congress and ending with the termi-
nation date of the demonstration project.
(e) REPORTS
BY
THE
COMMISSIONER; TERMI-
NATION.—
(1) INTERIM REPORTS.—On or before the date
which is 1 year after the date of enactment of this
†
HR 743 EAS
SEC. 304. GAO STUDY REGARDING THE FEE PAYMENT PROC-
ESS FOR CLAIMANT REPRESENTATIVES.
(a) STUDY.—
(1) IN GENERAL.—The Comptroller General of
the United States shall study and evaluate the ap-
pointment and payment of claimant representatives
appearing before the Commissioner of Social Security
in connection with benefit claims under titles II and
XVI of the Social Security Act (42 U.S.C. 401 et seq.,
1381 et seq.) in each of the following groups:
(A) Attorney claimant representatives who
elect fee withholding under section 206 or
1631(d)(2) of such Act.
(B) Attorney claimant representatives who
do not elect such fee withholding.
(C) Non-attorney claimant representatives
who are eligible for, and elect, such fee with-
holding.
(D) Non-attorney claimant representatives
who are eligible for, but do not elect, such fee
withholding.
(E) Non-attorney claimant representatives
who are not eligible for such fee withholding.
(2) MATTERS TO BE STUDIED.—In conducting
the study under this subsection, the Comptroller Gen-
†
HR 743 EAS
eral shall, for each of group of claimant representa-
tives described in paragraph (1)—
(A) conduct a survey of the relevant charac-
teristics 
of 
such 
claimant 
representatives
including—
(i) qualifications and experience;
(ii) the type of employment of such
claimant representatives, such as with an
advocacy group, State or local government,
or insurance or other company;
(iii) geographical distribution between
urban and rural areas;
(iv) the nature of claimants’ cases,
such as whether the cases are for disability
insurance benefits only, supplemental secu-
rity income benefits only, or concurrent
benefits;
(v) the relationship of such claimant
representatives to claimants, such as wheth-
er the claimant is a friend, family member,
or client of the claimant representative; and
(vi) the amount of compensation (if
any) paid to the claimant representatives
and the method of payment of such com-
pensation;
†
HR 743 EAS
(B) assess the quality and effectiveness of
the services provided by such claimant represent-
atives, including a comparison of claimant satis-
faction or complaints and benefit outcomes, ad-
justed for differences in claimant representatives’
caseload, claimants’ diagnostic group, level of de-
cision, and other relevant factors;
(C) assess the interactions between fee with-
holding under sections 206 and 1631(d)(2) of
such Act (including under the amendments made
by section 302 of this Act and under the dem-
onstration project conducted under section 303 of
this Act), the windfall offset under section 1127
of such Act, and interim assistance reimburse-
ments under section 1631(g) of such Act;
(D) assess the potential results of making
permanent the fee withholding procedures under
sections 206 and 1631(d)(2) of such Act under
the amendments made by section 302 of this Act
and under the demonstration project conducted
under section 303 of this Act with respect to pro-
gram administration and claimant outcomes,
and assess whether the rules and procedures em-
ployed by the Commissioner of Social Security to
evaluate the qualifications and performance of
†
HR 743 EAS
claimant representatives should be revised prior
to making such procedures permanent; and
(E) make such recommendations for admin-
istrative and legislative changes as the Comp-
troller General of the United States considers
necessary or appropriate.
(3) CONSULTATION REQUIRED.—The Comptroller
General of the United States shall consult with bene-
ficiaries under title II of such Act, beneficiaries under
title XVI of such Act, claimant representatives of
beneficiaries under such titles, and other interested
parties, in conducting the study and evaluation re-
quired under paragraph (1).
(b) REPORT.—Not later than 3 years after the date
of the submission by the Commissioner of Social Security
to each House of Congress pursuant to section 303(d) of
this Act of written notice of completion of full implementa-
tion of the requirements for operation of the demonstration
project under section 303 of this Act, the Comptroller Gen-
eral of the United States 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 results
of the study and evaluation conducted pursuant to sub-
section (a).
†
HR 743 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, 2005’’; and
(2) in subsection (d)(2), by striking the first sen-
tence and inserting the following: ‘‘The authority to
initiate projects under the preceding provisions of this
section shall terminate on December 18, 2005.’’.
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 743 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-
VIDING 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.’’.