a person who receives a fee or other income for serv-
ices performed in connection with any determination 
with respect to benefits under this title (including a 
claimant representative, translator, or current or 
former employee of the Social Security Administra-
tion), or who is a physician or other health care pro-
vider who submits, or causes the submission of, med-
ical or other evidence in connection with any such de-
termination, such person shall be guilty of a felony 
and upon conviction thereof shall be fined under title 
18, United States Code, or imprisoned for not more 
than ten years, or both.’’. 
(c) INCREASED CIVIL MONETARY PENALTIES
FOR 
CERTAIN INDIVIDUALS VIOLATING POSITIONS OF TRUST.— 
Section 1129(a)(1) of the Social Security Act (42 U.S.C. 
1320a–8(a)(1)) is amended, in the matter following sub-
paragraph (C), by inserting after ‘‘withholding disclosure 
of such fact’’ the following: ‘‘, except that in the case of such 
a person who receives a fee or other income for services per-
formed in connection with any such determination (includ-
ing a claimant representative, translator, or current or 
former employee of the Social Security Administration) or 
who is a physician or other health care provider who sub-
mits, or causes the submission of, medical or other evidence
in connection with any such determination, the amount of 
such penalty shall be not more than $7,500’’. 
(d) NO BENEFITS PAYABLE
TO INDIVIDUALS
FOR 
WHOM
A CIVIL MONETARY PENALTY IS IMPOSED
FOR 
FRAUDULENTLY CONCEALING WORK ACTIVITY.—Section 
222(c)(5) of the Social Security Act (42 U.S.C. 422(c)(5)) 
is amended by inserting after ‘‘conviction by a Federal 
court’’ the following: ‘‘, or the imposition of a civil mone-
tary penalty under section 1129,’’. 
SEC. 814. REFERENCES TO SOCIAL SECURITY AND MEDI-
CARE IN ELECTRONIC COMMUNICATIONS. 
(a) IN GENERAL.—Section 1140(a)(1) of the Social Se-
curity Act (42 U.S.C. 1320b–10(a)(1)) is amended by in-
serting ‘‘(including any Internet or other electronic commu-
nication)’’ after ‘‘or other communication’’. 
(b) EACH COMMUNICATION TREATED AS SEPARATE 
VIOLATION.—Section 1140(b) of such Act (42 U.S.C. 
1320b–10(b)) is amended by inserting after the second sen-
tence the following: ‘‘In the case of any items referred to 
in subsection (a)(1) consisting of Internet or other electronic 
communications, each dissemination, viewing, or accessing 
of such a communication which contains one or more words, 
letters, symbols, or emblems in violation of subsection (a) 
shall represent a separate violation’’.
SEC. 815. CHANGE TO CAP ADJUSTMENT AUTHORITY. 
Section 251(b)(2)(B) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 (2 U.S.C. 
901(b)(2)(B)) is amended— 
(1) in clause (i)— 
(A) in the matter before subclause (I), by 
striking ‘‘and for the cost associated with con-
ducting redeterminations of eligibility under title 
XVI of the Social Security Act’’ and inserting ‘‘, 
for the cost associated with conducting redeter-
minations of eligibility under title XVI of the 
Social Security Act, for the cost of co-operative 
disability investigation units, and for the cost 
associated with the prosecution of fraud in the 
programs and operations of the Social Security 
Administration by Special Assistant United 
States Attorneys’’; 
(B) 
in 
subclause 
(VI), 
by 
striking 
‘‘$1,309,000,000’’ 
and 
inserting 
‘‘$1,546,000,000’’; 
(C) 
in 
subclause 
(VII), 
by 
striking 
‘‘$1,309,000,000’’ 
and 
inserting 
‘‘$1,462,000,000’’; 
(D) 
in 
subclause 
(VIII), 
by 
striking 
‘‘$1,309,000,000’’ 
and 
inserting 
‘‘$1,410,000,000’’; and
(E) 
in 
subclause 
(X), 
by 
striking 
‘‘$1,309,000,000’’ 
and 
inserting 
‘‘$1,302,000,000’’; 
(2) in clause (ii)(I), by inserting ‘‘, including 
work-related continuing disability reviews to deter-
mine whether earnings derived from services dem-
onstrate an individual’s ability to engage in substan-
tial gainful activity’’ before the semicolon; and 
(3) in clause (ii)(III), by striking ‘‘and redeter-
minations’’ and inserting ‘‘, redeterminations, co-op-
erative disability investigation units, and fraud pros-
ecutions’’. 
Subtitle B—Promoting Opportunity 
for Disability Beneficiaries 
SEC. 821. TEMPORARY REAUTHORIZATION OF DISABILITY 
INSURANCE DEMONSTRATION PROJECT AU-
THORITY. 
(a) TERMINATION DATE.—Section 234(d)(2) of the So-
cial Security Act (42 U.S.C. 434(d)(2)) is amended by 
striking ‘‘December 18, 2005’’ and inserting ‘‘December 31, 
2021, and the authority to carry out such projects shall ter-
minate on December 31, 2022’’. 
(b) AUTHORITY TO WAIVE COMPLIANCE WITH BENE-
FITS REQUIREMENTS.—Section 234(c) of such Act is
amended by striking ‘‘December 17, 2005’’ and inserting 
‘‘December 30, 2021’’. 
SEC. 822. MODIFICATION OF DEMONSTRATION PROJECT 
AUTHORITY. 
(a) IN GENERAL.—Section 234(a)(1) of the Social Se-
curity Act (42 U.S.C. 434(a)(1)) is amended in the matter 
preceding subparagraph (A) by inserting ‘‘to promote at-
tachment to the labor force and’’ after ‘‘designed’’. 
(b) CONGRESSIONAL REVIEW PERIOD.—Section 234(c) 
of the Social Security Act (42 U.S.C. 434(c)), as amended 
by section 821(b) of this Act, is further amended by insert-
ing ‘‘including the objectives of the experiment or dem-
onstration project, the expected annual and total costs, and 
the dates on which the experiment or demonstration project 
is expected to start and finish,’’ after ‘‘thereof,’’ 
(c) ADDITIONAL REQUIREMENTS.—Section 234 of the 
Social Security Act (42 U.S.C. 434), as amended by sub-
section (b), is further amended by adding at the end the 
following: 
‘‘(e) ADDITIONAL REQUIREMENTS.—In developing and 
carrying out any experiment or demonstration project 
under this section, the Commissioner may not require any 
individual to participate in such experiment or demonstra-
tion project and shall ensure—
‘‘(1) that the voluntary participation of individ-
uals in such experiment or demonstration project is 
obtained through informed written consent which sat-
isfies the requirements for informed consent estab-
lished by the Commissioner for use in such experi-
ment or demonstration project in which human sub-
jects are at risk; 
‘‘(2) that any individual’s voluntary agreement 
to participate in any such experiment or demonstra-
tion project may be revoked by such individual at 
any time; and 
‘‘(3) that such experiment or demonstration 
project is expected to yield statistically significant re-
sults.’’. 
(d) 
ANNUAL
REPORTING
DEADLINE.—Section 
234(d)(1) of such Act is amended by striking ‘‘June 9’’ and 
inserting ‘‘September 30’’. 
SEC. 823. PROMOTING OPPORTUNITY DEMONSTRATION 
PROJECT. 
Section 234 of the Social Security Act (42 U.S.C. 434), 
as amended by section 822 of this Act, is further amended 
by adding at the end the following: 
‘‘(f) 
PROMOTING
OPPORTUNITY
DEMONSTRATION 
PROJECT.—
‘‘(1) IN
GENERAL.—The Commissioner shall 
carry out a demonstration project under this sub-
section as described in paragraph (2) during a 5-year 
period beginning not later than January 1, 2017. 
‘‘(2) BENEFIT OFFSET.—Under the demonstra-
tion project described in this paragraph, with respect 
to any individual participating in the project who is 
otherwise entitled to a benefit under section 223(a)(1) 
for a month— 
‘‘(A) any such benefit otherwise payable to 
the individual for such month (other than a ben-
efit payable for any month prior to the 1st 
month beginning after the date on which the in-
dividual’s entitlement to such benefit is deter-
mined) shall be reduced by $1 for each $2 by 
which the individual’s earnings derived from 
services paid during such month exceeds an 
amount equal to the individual’s impairment-re-
lated work expenses for such month (as deter-
mined under paragraph (3)), except that such 
benefit may not be reduced below $0; 
‘‘(B) no benefit shall be payable under sec-
tion 202 on the basis of the wages and self-em-
ployment income of the individual for any 
month for which the benefit of such individual
under section 223(a)(1) is reduced to $0 pursu-
ant to subparagraph (A); 
‘‘(C) entitlement to any benefit described in 
subparagraph (A) or (B) shall not terminate due 
to earnings derived from services except following 
the first month for which such benefit has been 
reduced to $0 pursuant to subparagraph (A) 
(and the trial work period (as defined in section 
222(c)) and extended period of eligibility shall 
not apply to any such individual for any such 
month); and 
‘‘(D) in any case in which such an indi-
vidual is entitled to hospital insurance benefits 
under part A of title XVIII by reason of section 
226(b) and such individual’s entitlement to a 
benefit described in subparagraph (A) or (B) or 
status as a qualified railroad retirement bene-
ficiary is terminated pursuant to subparagraph 
(C), such individual shall be deemed to be enti-
tled to such benefits or to occupy such status 
(notwithstanding the termination of such entitle-
ment or status) for the period of consecutive 
months throughout all of which the physical or 
mental impairment, on which such entitlement 
or status was based, continues, and throughout
all of which such individual would have been en-
titled to monthly insurance benefits under title 
II or as a qualified railroad retirement bene-
ficiary had such termination of entitlement or 
status not occurred, but not in excess of 93 such 
months. 
‘‘(3) IMPAIRMENT-RELATED WORK EXPENSES.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (2)(A) and except as provided in subpara-
graph (C), the amount of an individual’s im-
pairment-related work expenses for a month is 
deemed to be the minimum threshold amount. 
‘‘(B) MINIMUM
THRESHOLD
AMOUNT.—In 
this paragraph, the term ‘minimum threshold 
amount’ means an amount, to be determined by 
the Commissioner, which shall not exceed the 
amount sufficient to demonstrate that an indi-
vidual has rendered services in a month, as de-
termined by the Commissioner under section 
222(c)(4)(A). The Commissioner may test mul-
tiple minimum threshold amounts. 
‘‘(C) EXCEPTION
FOR
ITEMIZED
IMPAIR-
MENT-RELATED WORK EXPENSES.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
subparagraph (A), in any case in which the
amount of such an individual’s itemized 
impairment-related work expenses (as de-
fined in clause (ii)) for a month is greater 
than the minimum threshold amount, the 
amount of the individual’s impairment-re-
lated work expenses for the month shall be 
equal to the amount of the individual’s 
itemized impairment-related work expenses 
(as so defined) for the month. 
‘‘(ii) DEFINITION.—In this subpara-
graph, the term ‘itemized impairment-re-
lated work expenses’ means the amount ex-
cluded under section 223(d)(4)(A) from an 
individual’s earnings for a month in deter-
mining whether an individual is able to en-
gage in substantial gainful activity by rea-
son of such earnings in such month, except 
that such amount does not include the cost 
to the individual of any item or service for 
which the individual does not provide to the 
Commissioner a satisfactory itemized ac-
counting. 
‘‘(D) 
LIMITATION.—Notwithstanding 
the 
other provisions of this paragraph, for purposes 
of paragraph (2)(A), the amount of an individ-
ual’s impairment-related work expenses for a 
month shall not exceed the amount of earnings 
derived from services, prescribed by the Commis-
sioner under regulations issued pursuant to sec-
tion 223(d)(4)(A), sufficient to demonstrate an 
individual’s ability to engage in substantial 
gainful activity.’’. 
SEC. 824. USE OF ELECTRONIC PAYROLL DATA TO IMPROVE 
PROGRAM ADMINISTRATION. 
(a) IN GENERAL.—Title XI of the Social Security Act 
(42 U.S.C. 1301 et seq.) is amended by inserting after sec-
tion 1183 the following: 
‘‘INFORMATION EXCHANGE WITH PAYROLL DATA 
PROVIDERS 
‘‘SEC. 1184. (a) IN GENERAL.—The Commissioner of 
Social Security may enter into an information exchange 
with a payroll data provider for purposes of— 
‘‘(1) efficiently administering— 
‘‘(A) monthly insurance benefits under sub-
sections (d)(1)(B)(ii), (d)(6)(A)(ii), (d)(6)(B), 
(e)(1)(B)(ii), and (f)(1)(B)(ii) of section 202 and 
subsection (a)(1) of section 223; and 
‘‘(B) supplemental security income benefits 
under title XVI; and
‘‘(2) preventing improper payments of such bene-
fits without the need for verification by independent 
or collateral sources. 
‘‘(b) NOTIFICATION REQUIREMENTS.—Before entering 
into an information exchange pursuant to subsection (a), 
the Commissioner shall publish in the Federal Register a 
notice describing the information exchange and the extent 
to which the information received through such exchange 
is— 
‘‘(1) relevant and necessary to— 
‘‘(A) accurately determine entitlement to, 
and the amount of, benefits described under sub-
paragraph (A) of subsection (a)(1); 
‘‘(B) accurately determine eligibility for, 
and the amount of, benefits described in sub-
paragraph (B) of such subsection; and 
‘‘(C) prevent improper payment of such 
benefits; and 
‘‘(2) sufficiently accurate, up-to-date, and com-
plete. 
‘‘(c) DEFINITIONS.—For purposes of this section: 
‘‘(1) PAYROLL DATA PROVIDER.—The term ‘pay-
roll data provider’ means payroll providers, wage 
verification companies, and other commercial or non- 
commercial entities that collect and maintain data
regarding employment and wages, without regard to 
whether the entity provides such data for a fee or 
without cost. 
‘‘(2) INFORMATION EXCHANGE.—The term ‘infor-
mation exchange’ means the automated comparison of 
a system of records maintained by the commissioner 
of Social Security with records maintained by a pay-
roll data provider.’’. 
(b) AUTHORIZATION TO ACCESS INFORMATION HELD 
BY PAYROLL DATA PROVIDERS.— 
(1) AMENDMENT TO TITLE II.—Section 225 of 
the Social Security Act (42 U.S.C. 425) is amended 
by adding at the end the following: 
‘‘(c) ACCESS TO INFORMATION HELD BY PAYROLL 
DATA PROVIDERS.—(1) The Commissioner of Social Secu-
rity may require each individual who applies for or is enti-
tled to monthly insurance benefits under subsections 
(d)(1)(B)(ii), (d)(6)(A)(ii), (d)(6)(B), (e)(1)(B)(ii), and 
(f)(1)(B)(ii) of section 202 and subsection (a)(1) of section 
223 to provide authorization by the individual for the Com-
missioner to obtain from any payroll data provider (as de-
fined in section 1184(c)(1)) any record held by the payroll 
data provider with respect to the individual whenever the 
Commissioner determines the record is needed in connection
with a determination of initial or ongoing entitlement to 
such benefits. 
‘‘(2) An authorization provided by an individual 
under this subsection shall remain effective until the earliest 
of— 
‘‘(A) the rendering of a final adverse decision on 
the individual’s application or entitlement to benefits 
under this title; 
‘‘(B) the termination of the individual’s entitle-
ment to benefits under this title; or 
‘‘(C) the express revocation by the individual of 
the authorization, in a written notification to the 
Commissioner. 
‘‘(3) The Commissioner of Social Security is not re-
quired to furnish any authorization obtained pursuant to 
this subsection to the payroll data provider. 
‘‘(4) The Commissioner shall inform any person who 
provides authorization pursuant to this clause of the dura-
tion and scope of the authorization. 
‘‘(5) If an individual who applies for or is entitled 
to benefits under this title refuses to provide, or revokes, 
any authorization under this subsection, subsection (d) 
shall not apply to such individual beginning with the first 
day of the first month in which he or she refuses or revokes 
such authorization.’’.
(2) TITLE XVI.—Section 1631(e)(1)(B) of the So-
cial Security Act (42 U.S.C. 1383(e)(1)(B)) is amend-
ed by adding at the end the following: 
‘‘(iii)(I) The Commissioner of Social Security may re-
quire each applicant for, or recipient of, benefits under this 
title to provide authorization by the applicant, recipient or 
legal guardian (or by any other person whose income or 
resources are material to the determination of the eligibility 
of the applicant or recipient for such benefits) for the Com-
missioner to obtain from any payroll data provider (as de-
fined in section 1184(c)(1)) any record held by the payroll 
data provider with respect to the applicant or recipient (or 
any such other person) whenever the Commissioner deter-
mines the record is needed in connection with a determina-
tion of initial or ongoing eligibility or the amount of such 
benefits. 
‘‘(II) An authorization provided by an applicant, re-
cipient or legal guardian (or any other person whose income 
or resources are material to the determination of the eligi-
bility of the applicant or recipient) under this clause shall 
remain effective until the earliest of— 
‘‘(aa) the rendering of a final adverse decision 
on the applicant’s application for eligibility for bene-
fits under this title;
‘‘(bb) the cessation of the recipient’s eligibility 
for benefits under this title; 
‘‘(cc) the express revocation by the applicant, or 
recipient (or such other person referred to in sub-
clause (I)) of the authorization, in a written notifica-
tion to the Commissioner; or 
‘‘(dd) the termination of the basis upon which 
the Commissioner considers another person’s income 
and resources available to the applicant or recipient. 
‘‘(III) The Commissioner of Social Security is not re-
quired to furnish any authorization obtained pursuant to 
this clause to the payroll data provider. 
‘‘(IV) The Commissioner shall inform any person who 
provides authorization pursuant to this clause of the dura-
tion and scope of the authorization. 
‘‘(V) If an applicant for, or recipient of, benefits under 
this title (or any such other person referred to in subclause 
(I)) refuses to provide, or revokes, any authorization re-
quired by subclause (I), paragraph (2)(B) and paragraph 
(10) shall not apply to such applicant or recipient begin-
ning with the first day of the first month in which he or 
she refuses or revokes such authorization.’’. 
(c) 
REPORTING
RESPONSIBILITIES
FOR
BENE-
FICIARIES SUBJECT TO INFORMATION EXCHANGE WITH 
PAYROLL DATA PROVIDER.—
(1) AMENDMENT TO TITLE II.—Section 225 of 
the Social Security (42 U.S.C. 425), as amended by 
subsection (b)(1), is further amended by adding at the 
end the following: 
‘‘(d) An individual who has authorized the Commis-
sioner of Social Security to obtain records from a payroll 
data provider under subsection (c) shall not be subject to 
a penalty under section 1129A for any omission or error 
with respect to such individual’s wages as reported by the 
payroll data provider.’’. 
(2) AMENDMENT TO TITLE XVI.—Section 1631(e) 
of the Social Security Act (42 U.S.C. 1383(e)) is 
amended— 
(A) in paragraph (2)— 
(i) by striking ‘‘In the case of the fail-
ure’’ and inserting ‘‘(A) In the case of the 
failure’’; 
(ii) by redesignating subparagraphs 
(A) through (C) as clauses (i) through (iii), 
respectively; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(B) For purposes of subparagraph (A), the Commis-
sioner of Social Security shall find that good cause exists 
for the failure of, or delay by, an individual in submitting
a report of an event or change in circumstances relevant 
to eligibility for or amount of benefits under this title in 
any case where— 
‘‘(i) the individual (or another person referred to 
in paragraph (1)(B)(iii)(I)) has provided authoriza-
tion to the Commissioner to access payroll data 
records related to the individual; and 
‘‘(ii) the event or change in circumstance is a 
change in the individual’s employer.’’; and 
(B) by adding at the end the following: 
‘‘(10) An individual who has authorized the Commis-
sioner of Social Security to obtain records from a payroll 
data provider under paragraph (1)(B)(iii) (or on whose be-
half another person described in subclause (I) of such para-
graph has provided such authorization) shall not be subject 
to a penalty under section 1129A for any omission or error 
with respect to such individual’s wages as reported by the 
payroll data provider.’’. 
(d) REGULATIONS.—Not later than 1 year after the 
date of the enactment of this Act, the Commissioner of So-
cial Security shall prescribe by regulation procedures for 
implementing the Commissioner’s access to and use of infor-
mation held by payroll providers, including—
(1) guidelines for establishing and maintaining 
information exchanges with payroll providers, pursu-
ant to section 1184 of the Social Security Act; 
(2) beneficiary authorizations; 
(3) reduced wage reporting responsibilities for 
individuals who authorize the Commissioner to access 
information held by payroll data providers through 
an information exchange; and 
(4) procedures for notifying individuals in writ-
ing when they become subject to such reduced wage re-
porting requirements and when such reduced wage re-
porting requirements no longer apply to them. 
(e) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on the date that is 1 year after the 
date of the enactment of this Act. 
SEC. 825. TREATMENT OF EARNINGS DERIVED FROM SERV-
ICES. 
(a) IN GENERAL.—Section 223(d)(4) of the Social Se-
curity Act (42 U.S.C. 423(d)(4)) is amended by adding at 
the end the following: 
‘‘(C)(i) Subject to clause (ii), in determining when 
earnings derived from services demonstrate an individual’s 
ability to engage in substantial gainful activity, such earn-
ings shall be presumed to have been earned—
‘‘(I) in making a determination of initial enti-
tlement on the basis of disability, in the month in 
which the services were performed from which such 
earnings were derived; and 
‘‘(II) in any other case, in the month in which 
such earnings were paid. 
‘‘(ii) A presumption made under clause (i) shall not 
apply to a determination described in such clause if— 
‘‘(I) the Commissioner can reasonably establish, 
based on evidence readily available at the time of 
such determination, that the earnings were earned in 
a different month than when paid; or 
‘‘(II) in any case in which there is a determina-
tion that no benefit is payable due to earnings, after 
the individual is notified of the presumption made 
and provided with an opportunity to submit addi-
tional information along with an explanation of what 
additional information is needed, the individual 
shows to the satisfaction of the Commissioner that 
such earnings were earned in another month.’’. 
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect upon the date of the enactment 
of this Act, or as soon as practicable thereafter.