150
Subtitle B—Miscellaneous 
Amendments 
SEC. 411. ELIMINATION OF TRANSCRIPT REQUIREMENT IN 
REMAND CASES FULLY FAVORABLE TO THE 
CLAIMANT. 
(a) IN GENERAL.—Section 205(g) of the Social Secu-
rity Act (42 U.S.C. 405(g)) is amended in the sixth sen-
tence by striking ‘‘and a transcript’’ and inserting ‘‘and, 
in any case in which the Commissioner has not made a 
decision fully favorable to the individual, a transcript’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply with respect to final determinations 
issued (upon remand) on or after the date of the enactment 
of this Act.
SEC. 412. NONPAYMENT OF BENEFITS UPON REMOVAL 
FROM THE UNITED STATES. 
(a) IN GENERAL.—Section 202(n) of the Social Secu-
rity Act (42 U.S.C. 402(n)) is amended—
(1) in paragraph (1), by striking ‘‘section 241(a) 
(other than under paragraph (1)(C) or (1)(E) thereof) 
of the Immigration and Nationality Act’’ and insert-
ing ‘‘section 237(a) of the Immigration and Nation-
ality Act (other than under paragraph (1)(C) of such 
section) or under section 212(a)(6)(A) of such Act’’;
151
(2) in paragraph (2), by striking ‘‘section 241(a) 
of the Immigration and Nationality Act (other than 
under paragraph (1)(C) or (1)(E) thereof)’’ and in-
serting ‘‘section 237(a) of the Immigration and Na-
tionality Act (other than under paragraph (1)(C) of 
such section) or under section 212(a)(6)(A) of such 
Act’’; 
(3) in paragraph (3), by striking ‘‘paragraph 
(19) of section 241(a) of the Immigration and Nation-
ality Act (relating to persecution of others on account 
of race, religion, national origin, or political opinion, 
under the direction of or in association with the Nazi 
government of Germany or its allies) shall be consid-
ered to have been deported under such paragraph 
(19)’’ and inserting ‘‘paragraph (4)(D) of section 
241(a) of the Immigration and Nationality Act (re-
lating to participating in Nazi persecutions or geno-
cide) shall be considered to have been deported under 
such paragraph (4)(D)’’; and 
(4) in paragraph (3) (as amended by paragraph 
(3) of this subsection), by striking ‘‘241(a)’’ and in-
serting ‘‘237(a)’’. 
(b) TECHNICAL CORRECTIONS.—
(1) TERMINOLOGY REGARDING REMOVAL FROM 
THE UNITED STATES.—Section 202(n) of the Social
152
Security Act (42 U.S.C. 402(n)) (as amended by sub-
section (a)) is amended further—
(A) by striking ‘‘deportation’’ each place it 
appears and inserting ‘‘removal’’; 
(B) by striking ‘‘deported’’ each place it ap-
pears and inserting ‘‘removed’’; and 
(C) in the heading, by striking ‘‘Deporta-
tion’’ and inserting ‘‘Removal’’. 
(2) REFERENCES TO THE SECRETARY OF HOME-
LAND SECURITY.—Section 202(n) of the Social Secu-
rity Act (42 U.S.C. 402(n)) (as amended by sub-
section (a) and paragraph (1)) is amended further by 
inserting ‘‘or the Secretary of Homeland Security’’ 
after ‘‘the Attorney General’’ each place it appears. 
(c) EFFECTIVE DATES.—
(1) IN GENERAL.—The amendment made by—
(A) subsection (a)(1) shall apply to individ-
uals with respect to whom the Commissioner of 
Social Security receives a removal notice after 
the date of the enactment of this Act; 
(B) subsection (a)(2) shall apply with re-
spect to notifications of removals received by the 
Commissioner of Social Security after the date of 
enactment of this Act; and
153
(C) subsection (a)(3) shall be effective as if 
enacted on March 1, 1991. 
(2) SUBSEQUENT
CORRECTION
OF
CROSS-REF-
ERENCE AND TERMINOLOGY.—The amendments made 
by subsections (a)(4) and (b)(1) shall be effective as 
if enacted on April 1, 1997. 
(3) REFERENCES TO THE SECRETARY OF HOME-
LAND
SECURITY.—The amendment made by sub-
section (b)(2) shall be effective as if enacted on March 
1, 2003. 
SEC. 413. REINSTATEMENT OF CERTAIN REPORTING RE-
QUIREMENTS. 
Section 3003(a)(1) of the Federal Reports Elimination 
and Sunset Act of 1995 (31 U.S.C. 1113 note) shall not 
apply to any report required to be submitted under any 
of the following provisions of law: 
(1)(A) Section 201(c)(2) of the Social Security 
Act (42 U.S.C. 401(c)(2)). 
(B) Section 1817(b)(2) of the Social Security Act 
(42 U.S.C. 1395i(b)(2)). 
(C) Section 1841(b)(2) of the Social Security Act 
(42 U.S.C. 1395t(b)(2)). 
(2)(A) Section 221(c)(3)(C) of the Social Secu-
rity Act (42 U.S.C. 421(c)(3)(C)).
154
(B) Section 221(i)(3) of the Social Security Act 
(42 U.S.C. 421(i)(3)). 
SEC. 414. CLARIFICATION OF DEFINITIONS REGARDING 
CERTAIN SURVIVOR BENEFITS. 
(a) WIDOWS.—Section 216(c) of the Social Security 
Act (42 U.S.C. 416(c)) is amended—
(1) by redesignating subclauses (A) through (C) 
of clause (6) as subclauses (i) through (iii), respec-
tively; 
(2) by redesignating clauses (1) through (6) as 
clauses (A) through (F), respectively; 
(3) in clause (E) (as redesignated), by inserting 
‘‘except as provided in paragraph (2),’’ before ‘‘she 
was married’’; 
(4) by inserting ‘‘(1)’’ after ‘‘(c)’’; and 
(5) by adding at the end the following:
‘‘(2) The requirements of paragraph (1)(E) in connec-
tion with the surviving wife of an individual shall be treat-
ed as satisfied if—
‘‘(A) the individual had been married prior to 
the individual’s marriage to the surviving wife, 
‘‘(B) the prior wife was institutionalized during 
the individual’s marriage to the prior wife due to 
mental incompetence or similar incapacity,
155
‘‘(C) during the period of the prior wife’s insti-
tutionalization, the individual would have divorced 
the prior wife and married the surviving wife, but the 
individual did not do so because such divorce would 
have been unlawful, by reason of the prior wife’s in-
stitutionalization, under the laws of the State in 
which the individual was domiciled at the time (as 
determined based on evidence satisfactory to the Com-
missioner of Social Security), 
‘‘(D) the prior wife continued to remain institu-
tionalized up to the time of her death, and 
‘‘(E) the individual married the surviving wife 
within 60 days after the prior wife’s death.’’. 
(b) WIDOWERS.—Section 216(g) of such Act (42 
U.S.C. 416(g)) is amended—
(1) by redesignating subclauses (A) through (C) 
of clause (6) as subclauses (i) through (iii), respec-
tively; 
(2) by redesignating clauses (1) through (6) as 
clauses (A) through (F), respectively; 
(3) in clause (E) (as redesignated), by inserting 
‘‘except as provided in paragraph (2),’’ before ‘‘he was 
married’’; 
(4) by inserting ‘‘(1)’’ after ‘‘(g)’’; and 
(5) by adding at the end the following:
157
inserting ‘‘clause (E) of subsection (c)(1) or clause (E) of 
subsection (g)(1)’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall be effective with respect to applications for ben-
efits under title II of the Social Security Act filed during 
months ending after the date of the enactment of this Act. 
SEC. 415. CLARIFICATION RESPECTING THE FICA AND SECA 
TAX 
EXEMPTIONS 
FOR 
AN 
INDIVIDUAL 
WHOSE EARNINGS ARE SUBJECT TO THE 
LAWS OF A TOTALIZATION AGREEMENT PART-
NER. 
Sections 1401(c), 3101(c), and 3111(c) of the Internal 
Revenue Code of 1986 are each amended by striking ‘‘to 
taxes or contributions for similar purposes under’’ and in-
serting ‘‘exclusively to the laws applicable to’’.
SEC. 416. COVERAGE UNDER DIVIDED RETIREMENT SYSTEM 
FOR PUBLIC EMPLOYEES. 
(a) IN GENERAL.—Section 218(d)(6)(C) of the Social 
Security Act (42 U.S.C. 418(d)(6)(C)) is amended by strik-
ing ‘‘the State of Alaska, California, Connecticut, Florida, 
Georgia, Illinois, Massachusetts, Minnesota, Nevada, New 
Jersey, New Mexico, New York, North Dakota, Pennsyl-
vania, Rhode Island, Tennessee, Texas, Vermont, Wash-
ington, Wisconsin, or Hawaii’’ and inserting ‘‘a State’’.
158
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) takes effect on January 1, 2003. 
SEC. 417. COMPENSATION FOR THE SOCIAL SECURITY ADVI-
SORY BOARD. 
(a) IN GENERAL.—Subsection (f) of section 703 of the 
Social Security Act (42 U.S.C. 903(f)) is amended to read 
as follows: 
‘‘Compensation, Expenses, and Per Diem 
‘‘(f) A member of the Board shall, for each day (includ-
ing traveltime) during which the member is attending meet-
ings or conferences of the Board or otherwise engaged in 
the business of the Board, be compensated at the daily rate 
of basic pay for level IV of the Executive Schedule. While 
serving on business of the Board away from their homes 
or regular places of business, members may be allowed trav-
el expenses, including per diem in lieu of subsistence, as 
authorized by section 5703 of title 5, United States Code, 
for persons in the Government employed intermittently.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall be effective as of January 1, 2003.
159
SEC. 418. 60-MONTH PERIOD OF EMPLOYMENT REQUIRE-
MENT FOR GOVERNMENT PENSION OFFSET 
EXEMPTION. 
(a) WIFE’S INSURANCE BENEFITS.—Section 202(b)(4) 
of the Social Security Act (42 U.S.C. 402(b)(4)) is amend-
ed—
(1) in subparagraph (A), by striking ‘‘if, on the 
last day she was employed by such entity’’ and insert-
ing ‘‘if, during any portion of such service’’; and 
(2) in subparagraph (B)—
(A) in clause (ii), by striking ‘‘Subpara-
graph (A)(ii)’’ and inserting ‘‘Clauses (i) and 
(ii) of subparagraph (A)’’; and 
(B) by adding at the end the following: 
‘‘(iii) Subparagraph (A)(i) shall not apply with re-
spect to monthly periodic benefits based in whole or in part 
on service which constituted ‘employment’ as defined in sec-
tion 210 pursuant to an agreement executed with the Com-
missioner of Social Security under section 218, provided 
that the wife (or divorced wife) was employed in such serv-
ice—
‘‘(I) on the date of enactment of this clause and 
such service was continuous throughout the 60-month 
period ending on the last day the wife (or divorced 
wife) was employed in the service of the State (or po-
160
litical subdivision thereof, as defined in section 
218(b)(2)), or 
‘‘(II) in the case of such an agreement that was 
executed by the Commissioner of Social Security after 
the date of enactment of this clause, on the date such 
an agreement was executed by the Commissioner of 
Social Security and such service was continuous 
throughout the 60-month period ending on the last 
day the wife (or divorced wife) was employed in the 
service of the State (or political subdivision thereof, as 
so defined).’’. 
(b) 
HUSBAND’S
INSURANCE
BENEFITS.—Section 
202(c)(2) of such Act (42 U.S.C. 402(c)(2)) is amended—
(1) in subparagraph (A), by striking ‘‘if, on the 
last day he was employed by such entity’’ and insert-
ing ‘‘if, during any portion of such service’’; and 
(2) in subparagraph (B)—
(A) in clause (ii), by striking ‘‘Subpara-
graph (A)(ii)’’ and inserting ‘‘Clauses (i) and 
(ii) of subparagraph (A)’’; and 
(B) by adding at the end the following: 
‘‘(iii) Subparagraph (A)(i) shall not apply with re-
spect to monthly periodic benefits based in whole or in part 
on service which constituted ‘employment’ as defined in sec-
tion 210 pursuant to an agreement executed with the Com-
161
missioner of Social Security under section 218, provided 
that the husband (or divorced husband) was employed in 
such service—
‘‘(I) on the date of enactment of this clause and 
such service was continuous throughout the 60-month 
period ending on the last day the husband (or di-
vorced husband) was employed in the service of the 
State (or political subdivision thereof, as defined in 
section 218(b)(2)), or 
‘‘(II) in the case of such an agreement that was 
executed by the Commissioner of Social Security after 
the date of enactment of this clause, on the date such 
an agreement was executed by the Commissioner of 
Social Security and such service was continuous 
throughout the 60-month period ending on the last 
day the husband (or divorced husband) was employed 
in the service of the State (or political subdivision 
thereof, as so defined).’’. 
(c) 
WIDOW’S
INSURANCE
BENEFITS.—Section 
202(e)(7) of such Act (42 U.S.C. 402(e)(7)) is amended—
(1) in subparagraph (A), by striking ‘‘if, on the 
last day she was employed by such entity’’ and insert-
ing ‘‘if, during any portion of such service’’; and 
(2) in subparagraph (B)—
162
(A) in clause (ii), by striking ‘‘Subpara-
graph (A)(ii)’’ and inserting ‘‘Clauses (i) and 
(ii) of subparagraph (A)’’; and 
(B) by adding at the end the following: 
‘‘(iii) Subparagraph (A)(i) shall not apply with re-
spect to monthly periodic benefits based in whole or in part 
on service which constituted ‘employment’ as defined in sec-
tion 210 pursuant to an agreement executed with the Com-
missioner of Social Security under section 218, provided 
that the widow (or surviving divorced wife) was employed 
in such service—
‘‘(I) on the date of enactment of this clause and 
such service was continuous throughout the 60-month 
period ending on the last day the widow (or surviving 
divorced wife) was employed in the service of the 
State (or political subdivision thereof, as defined in 
section 218(b)(2)), or 
‘‘(II) in the case of such an agreement that was 
executed by the Commissioner of Social Security after 
the date of enactment of this clause, on the date such 
an agreement was executed by the Commissioner of 
Social Security and such service was continuous 
throughout the 60-month period ending on the last 
day the widow (or surviving divorced wife) was em-
163
ployed in the service of the State (or political subdivi-
sion thereof, as so defined).’’. 
(d) 
WIDOWER’S
INSURANCE
BENEFITS.—Section 
202(f)(2) of such Act (42 U.S.C. 402(f)(2)) is amended—
(1) in subparagraph (A), by striking ‘‘if, on the 
last day he was employed by such entity’’ and insert-
ing ‘‘if, during any portion of such service’’; and 
(2) in subparagraph (B)—
(A) in clause (ii), by striking ‘‘Subpara-
graph (A)(ii)’’ and inserting ‘‘Clauses (i) and 
(ii) of subparagraph (A)’’; and 
(B) by adding at the end the following: 
‘‘(iii) Subparagraph (A)(i) shall not apply with re-
spect to monthly periodic benefits based in whole or in part 
on service which constituted ‘employment’ as defined in sec-
tion 210 pursuant to an agreement executed with the Com-
missioner of Social Security under section 218, provided 
that the widower (or surviving divorced husband) was em-
ployed in such service—
‘‘(I) on the date of enactment of this clause and 
such service was continuous throughout the 60-month 
period ending on the last day the widower (or sur-
viving divorced husband) was employed in the service 
of the State (or political subdivision thereof, as de-
fined in section 218(b)(2)), or
164
‘‘(II) in the case of such an agreement that was 
executed by the Commissioner of Social Security after 
the date of enactment of this clause, on the date such 
an agreement was executed by the Commissioner of 
Social Security and such service was continuous 
throughout the 60-month period ending on the last 
day the widower (or surviving divorced husband) was 
employed in the service of the State (or political sub-
division thereof, as so defined).’’. 
(e) MOTHER’S
AND FATHER’S INSURANCE BENE-
FITS.—Section 202(g)(4) of the such Act (42 U.S.C. 
402(g)(4)) is amended—
(1) in subparagraph (A), by striking ‘‘if, on the 
last day the individual was employed by such entity’’ 
and inserting ‘‘if, during any portion of such serv-
ice’’; and 
(2) in subparagraph (B)—
(A) in clause (ii), by striking ‘‘Subpara-
graph (A)(ii)’’ and inserting ‘‘Clauses (i) and 
(ii) of subparagraph (A)’’; and 
(B) by adding at the end the following: 
‘‘(iii) Subparagraph (A)(i) shall not apply with re-
spect to monthly periodic benefits based in whole or in part 
on service which constituted ‘employment’ as defined in sec-
tion 210 pursuant to an agreement executed with the Com-
165
missioner of Social Security under section 218, provided 
that the individual was employed in such service—
‘‘(I) on the date of enactment of this clause and 
such service was continuous throughout the 60-month 
period ending on the last day the individual was em-
ployed in the service of the State (or political subdivi-
sion thereof, as defined in section 218(b)(2)), or 
‘‘(II) in the case of such an agreement that was 
executed by the Commissioner of Social Security after 
the date of enactment of this clause, on the date such 
an agreement was executed by the Commissioner of 
Social Security and such service was continuous 
throughout the 60-month period ending on the last 
day the individual was employed in the service of the 
State (or political subdivision thereof, as so de-
fined).’’. 
(f) EFFECTIVE DATE.—The amendments made by this 
section shall apply with respect to applications for benefits 
under title II of the Social Security Act filed on or after 
the first day of the first month that begins after the date 
of the enactment of this Act, except that such amendments 
shall not apply with respect to applications for benefits 
under title II of the Social Security Act based on earnings 
while in the service of any State (or political subdivision
166
thereof, as defined in section 218(b)(2) of the Social Secu-
rity Act)—
(1) if the last day of such service occurs before 
December 31, 2003, or 
(2) in any case in which the last day of such 
service occurs before June 30, 2004, subject to a con-
tract for such service entered into prior to September 
30, 2003. 
SEC. 419. POST-1956 MILITARY WAGE CREDITS. 
(a) PAYMENT
TO
THE SOCIAL SECURITY TRUST 
FUNDS
IN
SATISFACTION
OF
OUTSTANDING
OBLIGA-
TIONS.—Section 201 of the Social Security Act (42 U.S.C. 
401) is amended by adding at the end the following: 
‘‘(n) Not later than July 1, 2004, the Secretary of the 
Treasury shall transfer, from amounts in the general fund 
of the Treasury that are not otherwise appropriated— 
‘‘(1) $624,971,854 to the Federal Old-Age and 
Survivors Insurance Trust Fund; 
‘‘(2) $105,379,671 to the Federal Disability In-
surance Trust Fund; and 
‘‘(3) $173,306,134 to the Federal Hospital Insur-
ance Trust Fund. 
Amounts transferred in accordance with this subsection 
shall be in satisfaction of certain outstanding obligations 
for deemed wage credits for 2000 and 2001.’’.
167
(b) CONFORMING AMENDMENTS.—
(1) REPEAL OF AUTHORITY FOR ANNUAL APPRO-
PRIATIONS
AND
RELATED
ADJUSTMENTS
TO
COM-
PENSATE THE SOCIAL SECURITY TRUST FUND FOR 
MILITARY WAGE CREDITS.—Section 229 of the Social 
Security Act (42 U.S.C. 429) is amended—
(A) by striking ‘‘(a)’’; and 
(B) by striking subsection (b). 
(2) AMENDMENT TO REFLECT THE TERMINATION 
OF WAGE CREDITS EFFECTIVE AFTER CALENDAR YEAR 
2001 BY SECTION 8134 OF PUBLIC LAW 107–117.—Sec-
tion 229(a)(2) of the Social Security Act (42 U.S.C. 
429(a)(2)), as amended by paragraph (1), is amended 
by inserting ‘‘and before 2002’’ after ‘‘1977’’. 
Subtitle C—Technical Amendments 
SEC. 421. TECHNICAL CORRECTION RELATING TO RESPON-
SIBLE AGENCY HEAD. 
Section 1143 of the Social Security Act (42 
U.S.C. 1320b–13) is amended—
(1) by striking ‘‘Secretary’’ the first place it ap-
pears and inserting ‘‘Commissioner of Social Secu-
rity’’; and 
(2) by striking ‘‘Secretary’’ each subsequent place 
it appears and inserting ‘‘Commissioner’’.
168
SEC. 422. TECHNICAL CORRECTION RELATING TO RETIRE-
MENT BENEFITS OF MINISTERS. 
(a) IN GENERAL.—Section 211(a)(7) of the Social Se-
curity Act (42 U.S.C. 411(a)(7)) is amended by inserting 
‘‘, but shall not include in any such net earnings from self-
employment the rental value of any parsonage or any par-
sonage allowance (whether or not excluded under section 
107 of the Internal Revenue Code of 1986) provided after 
the individual retires, or any other retirement benefit re-
ceived by such individual from a church plan (as defined 
in section 414(e) of such Code) after the individual retires’’ 
before the semicolon. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to years beginning before, on, or after 
December 31, 1994. 
SEC. 423. TECHNICAL CORRECTIONS RELATING TO DOMES-
TIC EMPLOYMENT. 
(a) AMENDMENT TO INTERNAL REVENUE CODE.—Sec-
tion 3121(a)(7)(B) of the Internal Revenue Code of 1986 
is amended by striking ‘‘described in subsection (g)(5)’’ and 
inserting ‘‘on a farm operated for profit’’. 
(b) AMENDMENT TO SOCIAL SECURITY ACT.—Section 
209(a)(6)(B) 
of 
the 
Social 
Security 
Act 
(42 
U.S.C. 409(a)(6)(B)) is amended by striking ‘‘described in 
section 210(f)(5)’’ and inserting ‘‘on a farm operated for 
profit’’.
169
(c) CONFORMING AMENDMENT.—Section 3121(g)(5) of 
such Code and section 210(f)(5) of such Act (42 
U.S.C. 410(f)(5)) are amended by striking ‘‘or is domestic 
service in a private home of the employer’’. 
SEC. 424. TECHNICAL CORRECTIONS OF OUTDATED REF-
ERENCES. 
(a) CORRECTION OF CITATION RESPECTING THE TAX 
DEDUCTION RELATING TO HEALTH INSURANCE COSTS OF 
SELF-EMPLOYED INDIVIDUALS.—Section 211(a)(15) of the 
Social Security Act (42 U.S.C. 411(a)(15)) is amended by 
striking ‘‘section 162(m)’’ and inserting ‘‘section 162(l)’’. 
(b) ELIMINATION OF REFERENCE TO OBSOLETE 20-
DAY AGRICULTURAL WORK TEST.—Section 3102(a) of the 
Internal Revenue Code of 1986 is amended by striking ‘‘and 
the employee has not performed agricultural labor for the 
employer on 20 days or more in the calendar year for cash 
remuneration computed on a time basis’’. 
SEC. 425. TECHNICAL CORRECTION RESPECTING SELF-EM-
PLOYMENT INCOME IN COMMUNITY PROP-
ERTY STATES. 
(a) SOCIAL SECURITY ACT AMENDMENT.—Section 
211(a)(5)(A) 
of 
the 
Social 
Security 
Act 
(42 
U.S.C. 411(a)(5)(A)) is amended by striking ‘‘all of the 
gross income’’ and all that follows and inserting ‘‘the gross 
income and deductions attributable to such trade or busi-
170
ness shall be treated as the gross income and deductions 
of the spouse carrying on such trade or business or, if such 
trade or business is jointly operated, treated as the gross 
income and deductions of each spouse on the basis of their 
respective distributive share of the gross income and deduc-
tions;’’. 
(b) INTERNAL REVENUE CODE
OF 1986 AMEND-
MENT.—Section 1402(a)(5)(A) of the Internal Revenue 
Code of 1986 is amended by striking ‘‘all of the gross in-
come’’ and all that follows and inserting ‘‘the gross income 
and deductions attributable to such trade or business shall 
be treated as the gross income and deductions of the spouse 
carrying on such trade or business or, if such trade or busi-
ness is jointly operated, treated as the gross income and 
deductions of each spouse on the basis of their respective 
distributive share of the gross income and deductions; and’’. 
SEC. 426. TECHNICAL AMENDMENTS TO THE RAILROAD RE-
TIREMENT AND SURVIVORS’ IMPROVEMENT 
ACT OF 2001. 
(a) QUORUM RULES.—Section 15(j)(7) of the Railroad 
Retirement Act of 1974 (45 U.S.C. 231n(j)(7)) is amended 
by striking ‘‘entire Board of Trustees’’ and inserting 
‘‘Trustees then holding office’’.
171
(b) POWERS OF THE BOARD OF TRUSTEES.—Section 
15(j)(4) of the Railroad Retirement Act of 1974 (45 U.S.C. 
231n(j)(4)) is amended to read as follows: 
‘‘(4) POWERS OF THE BOARD OF TRUSTEES.—
The Board of Trustees shall—
‘‘(A) retain independent advisers to assist it 
in the formulation and adoption of its invest-
ment guidelines; 
‘‘(B) invest assets of the Trust in a manner 
consistent with such investment guidelines, either 
directly or through the retention of independent 
investment managers; 
‘‘(C) adopt bylaws and other rules to govern 
its operations; 
‘‘(D) employ professional staff, and contract 
with outside advisers, including the Railroad Re-
tirement Board, to provide legal, accounting, in-
vestment advisory or management services (com-
pensation for which may be on a fixed contract 
fee basis or on such other terms as are customary 
for such services), or other services necessary for 
the proper administration of the Trust; 
‘‘(E) sue and be sued and participate in 
legal proceedings, have and use a seal, conduct 
business, carry on operations, and exercise its
172
powers within or without the District of Colum-
bia, form, own, or participate in entities of any 
kind, enter into contracts and agreements nec-
essary to carry out its business purposes, lend 
money for such purposes, and deal with property 
as security for the payment of funds so loaned, 
and possess and exercise any other powers ap-
propriate to carry out the purposes of the Trust; 
‘‘(F) pay administrative expenses of the 
Trust from the assets of the Trust; and 
‘‘(G) transfer money to the disbursing agent 
or as otherwise provided in section 7(b)(4), to 
pay benefits payable under this Act from the as-
sets of the Trust.’’. 
(c) STATE AND LOCAL TAXES.—Section 15(j)(6) of the 
Railroad Retirement Act of 1974 (45 U.S.C. 231n(j)(6)) is 
amended to read as follows: 
‘‘(6) STATE AND LOCAL TAXES.—The Trust shall 
be exempt from any income, sales, use, property, or 
other similar tax or fee imposed or levied by a State, 
political subdivision, or local taxing authority. The 
district courts of the United States shall have original 
jurisdiction over a civil action brought by the Trust 
to enforce this subsection and may grant equitable or 
declaratory relief requested by the Trust.’’.
173
(d) FUNDING.—Section 15(j)(8) of the Railroad Re-
tirement Act of 1974 (45 U.S.C. 231n(j)(8)) is repealed. 
(e) TRANSFERS.—
(1) Section 15(k) of the Railroad Retirement Act 
of 1974 (45 U.S.C. 231n(k)) is amended by adding at 
the end the following: ‘‘At the direction of the Rail-
road Retirement Board, the National Railroad Re-
tirement Investment Trust shall transfer funds to the 
Railroad Retirement Account.’’. 
(2) Section 15A(d)(2) of the Railroad Retirement 
Act of 1974 (45 U.S.C. 231n–1(d)(2)) is amended—
(A) by inserting ‘‘or the Railroad Retire-
ment Account’’ after ‘‘National Railroad Retire-
ment Investment Trust’’ the second place it ap-
pears; 
(B) by inserting ‘‘or the Railroad Retire-
ment Board’’ after ‘‘National Railroad Retire-
ment Investment Trust’’ the third place it ap-
pears; 
(C) by inserting ‘‘(either directly or through 
a commingled account consisting only of such ob-
ligations)’’ after ‘‘United States’’ the first place 
it appears; and
174
(D) in the third sentence, by inserting be-
fore the period at the end the following: ‘‘or to 
purchase such additional obligations’’. 
(3) Paragraph (4)(B)(ii) of section 7(b) of the 
Railroad Retirement Act of 1974 (45 U.S.C. 
231f(b)(4)(B)(ii)) is amended by inserting ‘‘quarterly 
or at such other times as the Railroad Retirement 
Board and the Board of Trustees of the National 
Railroad Retirement Investment Trust may mutually 
agree’’ after ‘‘amounts’’ the second place it appears. 
(f) CLERICAL AMENDMENTS.—Section 15(j)(5) of the 
Railroad Retirement Act of 1974 (45 U.S.C. 231n(j)(5)) is 
amended—
(1) in subparagraph (B), by striking ‘‘trustee’s’’ 
each place it appears and inserting ‘‘Trustee’s’’; 
(2) in subparagraph (C), by striking ‘‘trustee’’ 
and ‘‘trustees’’ each place it appears and inserting 
‘‘Trustee’’ and ‘‘Trustees’’, respectively; and 
(3) in the matter preceding clause (i) of subpara-
graph (D), by striking ‘‘trustee’’ and inserting 
‘‘Trustee’’.
175
Subtitle D—Amendments Related to 
Title XVI 
SEC. 430. EXCLUSION FROM INCOME FOR CERTAIN INFRE-
QUENT OR IRREGULAR INCOME AND CERTAIN 
INTEREST OR DIVIDEND INCOME. 
(a) INFREQUENT
OR IRREGULAR INCOME.—Section 
1612(b)(3) of the Social Security Act (42 U.S.C. 
1382a(b)(3)) is amended to read as follows—
‘‘(3) in any calendar quarter, the first—
‘‘(A) $60 of unearned income, and 
‘‘(B) $30 of earned income, 
of such individual (and such spouse, if any) which, 
as determined in accordance with criteria prescribed 
by the Commissioner of Social Security, is received 
too infrequently or irregularly to be included;’’. 
(b) 
INTEREST
OR
DIVIDEND
INCOME.—Section 
1612(b) of the Social Security Act (42 U.S.C. 1382a(b)) is 
amended—
(1) in paragraph (21), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (22), by striking the period 
and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(23) interest or dividend income from re-
sources—
176
‘‘(A) not excluded under section 1613(a), or 
‘‘(B) excluded pursuant to Federal law 
other than section 1613(a).’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall be effective with respect to benefits payable for 
months in calendar quarters that begin more than 90 days 
after the date of the enactment of this Act. 
SEC. 431. UNIFORM 9-MONTH RESOURCE EXCLUSION PERI-
ODS. 
(a) 
UNDERPAYMENTS
OF
BENEFITS.—Section 
1613(a)(7) of the Social Security Act (42 U.S.C. 
1382b(a)(7)) is amended—
(1) by striking ‘‘6’’ and inserting ‘‘9’’; and 
(2) by striking ‘‘(or to the first 9 months fol-
lowing such month with respect to any amount so re-
ceived during the period beginning October 1, 1987, 
and ending September 30, 1989)’’. 
(b) 
ADVANCEABLE
TAX
CREDITS.—Section 
1613(a)(11) of the Social Security Act (42 U.S.C. 
1382b(a)(11)) is amended to read as follows: 
‘‘(11) for the 9-month period beginning after the 
month in which received—
‘‘(A) notwithstanding section 203 of the 
Economic Growth and Tax Relief Reconciliation 
Act of 2001, any refund of Federal income taxes
177
made to such individual (or such spouse) under 
section 24 of the Internal Revenue Code of 1986 
(relating to child tax credit) by reason of sub-
section (d) thereof; and 
‘‘(B) any refund of Federal income taxes 
made to such individual (or such spouse) by rea-
son of section 32 of the Internal Revenue Code 
of 1986 (relating to earned income tax credit), 
and any payment made to such individual (or 
such spouse) by an employer under section 3507 
of such Code (relating to advance payment of 
earned income credit);’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on the date of enactment of this Act, 
and shall apply to amounts described in paragraph (7) of 
section 1613(a) of the Social Security Act and refunds of 
Federal income taxes described in paragraph (11) of such 
section, that are received by an eligible individual or eligi-
ble spouse on or after such date. 
SEC. 432. MODIFICATION OF DEDICATED ACCOUNT RE-
QUIREMENTS. 
(a) IN GENERAL.—Section 1631(a)(2)(F) of the Social 
Security Act (42 U.S.C. 1383(a)(2)(F)) is amended—
(1) in clause (ii)(II)—
(A) in item (ff), by striking ‘‘or’’ at the end;
178
(B) by redesignating item (gg) as item (hh); 
(C) by inserting after item (ff) the fol-
lowing: 
‘‘(gg) reimbursement of expenditures incurred by 
the representative payee that are for the good of such 
individual; or’’; and 
(D) in the matter following item (hh) (as 
redesignated by subparagraph (B)), by striking 
‘‘(gg), is related to the impairment (or combina-
tion of impairments)’’ and inserting ‘‘(hh), is ex-
pended for the good’’; and 
(2) in clause (iv), by inserting ‘‘, including with 
respect to allowable expenses paid from the account in 
accordance with clause (ii)(II)’’ before the period. 
(b) EFFECTIVE DATE.—The amendments made by this 
section take effect on January 1, 2004, and apply with re-
spect to allowable expenses incurred or accounts established 
on or after that date. 
SEC. 433. ELIMINATION OF CERTAIN RESTRICTIONS ON THE 
APPLICATION OF THE STUDENT EARNED IN-
COME EXCLUSION. 
(a) IN GENERAL.—Section 1612(b)(1) of the Social Se-
curity Act (42 U.S.C. 1382a(b)(1)) is amended by striking 
‘‘a child who’’ and inserting ‘‘under the age of 22 and’’.
179
(b) EFFECTIVE DATE.—The amendment made by this 
section shall be effective with respect to benefits payable for 
months that begin on or after 1 year after the date of enact-
ment of this Act. 
SEC. 434. EXCLUSION OF AMERICORPS AND OTHER VOLUN-
TEER BENEFITS FOR PURPOSES OF DETER-
MINING SUPPLEMENTAL SECURITY INCOME 
ELIGIBILITY AND BENEFIT AMOUNTS AND SO-
CIAL SECURITY DISABILITY INSURANCE ENTI-
TLEMENT. 
(a) IN GENERAL.—
(1) SSI.—
(A) INCOME.—Section 1612(b) of the Social 
Security Act (42 U.S.C. 1382a(b)) (as amended 
by section 430(a)(2)) is amended—
(i) in paragraph (22), by striking 
‘‘and’’ at the end; 
(ii) in paragraph (23), by striking the 
period and inserting ‘‘; and’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(24) any cash or in-kind benefit conferred upon 
(or paid on behalf of) an individual serving as a vol-
unteer or participant in a program administered by
180
the Corporation for National and Community Service 
for service in such program.’’. 
(B) SUBSTANTIAL GAINFUL ACTIVITY.—Sec-
tion 1614(a)(3) of the Social Security Act (42 
U.S.C. 1382c(a)(3)) is amended by adding at the 
end the following: 
‘‘(K) In determining under subparagraph (A) when 
services performed or earnings derived from services dem-
onstrate an individual’s ability to engage in substantial 
gainful activity, the Commissioner of Social Security shall 
disregard services performed as a volunteer or participant 
in any program administered by the Corporation for Na-
tional and Community Service, and any earnings derived 
from such service.’’. 
(2) SSDI.—Section 223(d)(4) of such Act (42 
U.S.C. 423(d)(4)) is amended by adding at the end 
the following: 
‘‘(C) In determining under subparagraph (A) when 
services performed or earnings derived from services dem-
onstrate an individual’s ability to engage in substantial 
gainful activity, the Commissioner of Social Security shall 
disregard services performed as a volunteer or participant 
in any program administered by the Corporation for Na-
tional and Community Service, and any earnings derived 
from such service.’’.
181
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to benefits payable for months beginning 
on or after 60 days after the date of enactment of this Act. 
SEC. 435. EXCEPTION TO RETROSPECTIVE MONTHLY AC-
COUNTING FOR NONRECURRING INCOME. 
(a) IN GENERAL.—Section 1611(c) of the Social Secu-
rity Act (42 U.S.C. 1382(c)) is amended by adding at the 
end the following: 
‘‘(9)(A) Notwithstanding paragraphs (1) and (2), any 
nonrecurring income which is paid to an individual in the 
first month of any period of eligibility shall be taken into 
account in determining the amount of the benefit under this 
title of such individual (and his eligible spouse, if any) only 
for that month, and shall not be taken into account in deter-
mining the amount of the benefit for any other month. 
‘‘(B) For purposes of subparagraph (A), payments to 
an individual in varying amounts from the same or similar 
source for the same or similar purpose shall not be consid-
ered to be nonrecurring income.’’. 
(b) DELETION
OF OBSOLETE MATERIAL.—Section 
1611(c)(2)(B) of the Social Security Act (42 U.S.C. 
1382(c)(2)(B)) is amended to read as follows: 
‘‘(B) in the case of the first month following a 
period of ineligibility in which eligibility is restored 
after the first day of such month, bear the same ratio
182
to the amount of the benefit which would have been 
payable to such individual if eligibility had been re-
stored on the first day of such month as the number 
of days in such month including and following the 
date of restoration of eligibility bears to the total 
number of days in such month.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall be effective with respect to benefits payable for 
months that begin on or after 1 year after the date of enact-
ment of this Act. 
SEC. 436. REMOVAL OF RESTRICTION ON PAYMENT OF BEN-
EFITS TO CHILDREN WHO ARE BORN OR WHO 
BECOME BLIND OR DISABLED AFTER THEIR 
MILITARY PARENTS ARE STATIONED OVER-
SEAS. 
(a) IN GENERAL.—Section 1614(a)(1)(B)(ii) of the So-
cial Security Act (42 U.S.C. 1382c(a)(1)(B)(ii)) is amend-
ed—
(1) by inserting ‘‘and’’ after ‘‘citizen of the 
United States,’’; and 
(2) by striking ‘‘, and who,’’ and all that follows 
and inserting a period. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall be effective with respect to benefits payable for
183
months beginning after the date of enactment of this Act, 
but only on the basis of an application filed after such date. 
SEC. 437. TREATMENT OF EDUCATION-RELATED INCOME 
AND RESOURCES. 
(a) EXCLUSION FROM INCOME OF GIFTS PROVIDED 
FOR TUITION AND OTHER EDUCATION-RELATED FEES.—
Section 1612(b)(7) of the Social Security Act (42 U.S.C. 
1382a(b)(7)) is amended by striking ‘‘or fellowship received 
for use in paying’’ and inserting ‘‘fellowship, or gift (or 
portion of a gift) used to pay’’. 
(b) EXCLUSION FROM RESOURCES FOR 9 MONTHS OF 
GRANTS, SCHOLARSHIPS, FELLOWSHIPS, OR GIFTS PRO-
VIDED
FOR TUITION
AND OTHER EDUCATION-RELATED 
FEES.—Section 1613(a) of the Social Security Act (42 
U.S.C. 1382b(a)) (as amended by section 101(c)(2)) is 
amended—
(1) in paragraph (13), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (14), by striking the period 
and inserting ‘‘; and’’; and 
(3) by inserting after paragraph (14) the fol-
lowing: 
‘‘(15) for the 9-month period beginning after the 
month in which received, any grant, scholarship, fel-
lowship, or gift (or portion of a gift) used to pay the
184
cost of tuition and fees at any educational (including 
technical or vocational education) institution.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to benefits payable for months that begin 
more than 90 days after the date of enactment of this Act. 
SEC. 438. MONTHLY TREATMENT OF UNIFORMED SERVICE 
COMPENSATION. 
(a) TREATMENT
OF
PAY
AS
RECEIVED
WHEN 
EARNED.—Section 1611(c) of the Social Security Act (42 
U.S.C. 1382(c)), as amended by section 435(a), is amended 
by adding at the end the following: 
‘‘(10) For purposes of this subsection, remuneration for 
service performed as a member of a uniformed service may 
be treated as received in the month in which it was earned, 
if the Commissioner of Social Security determines that such 
treatment would promote the economical and efficient ad-
ministration of the program authorized by this title.’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to benefits payable for months that begin 
more than 90 days after the date of enactment of this Act. 
SEC. 439. UPDATE OF RESOURCE LIMITS. 
(a) INCREASE.—Section 1611(a)(3) of the Social Secu-
rity Act (42 U.S.C. 1382(a)(3)) is amended—
(1) in subparagraph (A), by adding at the end 
the following: ‘‘On January 1, 2004, such dollar
185
amount shall be increased to an amount equal to 150 
percent of the dollar amount applicable to an indi-
vidual described in paragraph (1)(B)(ii).’’; and 
(2) in subparagraph (B)—
(A) by striking ‘‘and’’ the last place it ap-
pears; and 
(B) by inserting ‘‘, and to $3,000 on Janu-
ary 1, 2004’’ before the period. 
(b) 
COST-OF-LIVING
ADJUSTMENT.—Section 
1617(a)(1) of the Social Security Act (42 U.S.C. 
1382f(a)(1)) is amended by inserting ‘‘(a)(3)(B),’’ before 
‘‘(b)(1)’’. 
(c) EFFECTIVE DATES.—
(1) INCREASE.—The amendments made by sub-
section (a) shall take effect on January 1, 2004. 
(2) COST-OF-LIVING ADJUSTMENT.—The amend-
ment made by subsection (b) shall take effect on Jan-
uary 1, 2005. 
SEC. 440. REVIEW OF STATE AGENCY BLINDNESS AND DIS-
ABILITY DETERMINATIONS. 
Section 1633 of the Social Security Act (42 U.S.C. 
1383b) is amended by adding at the end the following: 
‘‘(e)(1) The Commissioner of Social Security shall re-
view determinations, made by State agencies pursuant to 
subsection (a) in connection with applications for benefits
186
under this title on the basis of blindness or disability, that 
individuals who have attained 18 years of age are blind 
or disabled. Any review by the Commissioner of Social Se-
curity of a State agency determination under this para-
graph shall be made before any action is taken to implement 
the determination. 
‘‘(2)(A) In carrying out paragraph (1), the Commis-
sioner of Social Security shall review—
‘‘(i) with respect to fiscal year 2004, at least 25 
percent of all determinations referred to in paragraph 
(1) that are made in such year after the later of—
‘‘(I) March 31; and 
‘‘(II) the date of enactment of this sub-
section; and 
‘‘(ii) with respect to fiscal years after fiscal year 
2004, at least 50 percent of all such determinations 
that are made in each such fiscal year. 
‘‘(B) In conducting reviews pursuant to subparagraph 
(A), the Commissioner of Social Security shall, to the extent 
feasible, select for review those determinations which the 
Commissioner of Social Security identifies as being the 
most likely to be incorrect.’’.
Calendar No. 349
108TH CONGRESS 
1ST SESSION 
H. R. 743
[Report No. 108–176] 
AN ACT 
To amend the Social Security Act and the Internal 
Revenue Code of 1986 to provide additional safe-
guards for Social Security and Supplemental Se-
curity Income beneficiaries with representative 
payees, to enhance program protections, and for 
other purposes. 
OCTOBER 29, 2003
Reported with an amendment