Social Security Protection Act of 2004
PL 108-203 (H.R.743), enacted 03/02/2004

118 STAT. 493
PUBLIC LAW 108–203—MAR. 2, 2004
Public Law 108–203
108th Congress
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 In-
come beneficiaries with representative payees, to enhance program protections,
and for other purposes.
Be it enacted by the Senate and House of Representatives 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 2004’’.
(b) TABLE OF CONTENTS.—The table of contents for this Act
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 convicted
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 representative
payee fails to provide required accounting.
Sec. 107. Survey of use of payments by representative payees.
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 withholding of material
facts.
Sec. 202. Issuance by Commissioner of Social Security of receipts to acknowledge
submission of reports of changes in work or earnings status of disabled
beneficiaries.
Sec. 203. Denial of title II benefits to persons fleeing prosecution, custody, or con-
finement, and to persons violating probation or parole.
Sec. 204. Requirements relating to offers to provide for a fee, a product or service
available without charge from the Social Security Administration.
Sec. 205. Refusal to recognize certain individuals as claimant representatives.
Sec. 206. Criminal penalty for corrupt or forcible interference with administration
of Social 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 conviction of
fraudulent concealment of work activity.
Sec. 209. Authority for judicial orders of restitution.
42 USC 1305
note.
Social Security
Protection Act of
2004.
Mar. 2, 2004
[H.R. 743]
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118 STAT. 494
PUBLIC LAW 108–203—MAR. 2, 2004
Sec. 210. Authority for cross-program recovery of benefit overpayments.
Sec. 211. Prohibition on payment of title II benefits to persons not authorized to
work in the United States.
TITLE III—ATTORNEY REPRESENTATIVE FEE PAYMENT SYSTEM
IMPROVEMENTS
Sec. 301. Cap on attorney assessments.
Sec. 302. Temporary extension of attorney fee payment system to title XVI claims.
Sec. 303. Nationwide demonstration project providing for extension of fee with-
holding procedures to non-attorney representatives.
Sec. 304. GAO study regarding the fee payment process for claimant representa-
tives.
TITLE IV—MISCELLANEOUS AND TECHNICAL AMENDMENTS
Subtitle A—Amendments Relating to the Ticket to Work and Work Incentives
Improvement Act of 1999
Sec. 401. Application of demonstration authority sunset date to new projects.
Sec. 402. Expansion of waiver authority available in connection with demonstration
projects providing for reductions in disability insurance benefits based
on earnings.
Sec. 403. Funding of demonstration projects providing for reductions in disability
insurance benefits based on earnings.
Sec. 404. Availability of Federal and State work incentive services to additional in-
dividuals.
Sec. 405. Technical amendment clarifying treatment for certain purposes of indi-
vidual work plans under the Ticket to Work and Self-Sufficiency Pro-
gram.
Sec. 406. GAO study regarding the Ticket to Work and Self-Sufficiency Program.
Sec. 407. Reauthorization of appropriations for certain work incentives programs.
Subtitle B—Miscellaneous Amendments
Sec. 411. Elimination of transcript requirement in remand cases fully favorable to
the claimant.
Sec. 412. Nonpayment of benefits upon removal from the United States.
Sec. 413. Reinstatement of certain reporting requirements.
Sec. 414. Clarification of definitions regarding certain survivor benefits.
Sec. 415. Clarification respecting the FICA and SECA tax exemptions for an indi-
vidual whose earnings are subject to the laws of a totalization agree-
ment partner.
Sec. 416. Coverage under divided retirement system for public employees in Ken-
tucky and Louisiana.
Sec. 417. Compensation for the Social Security Advisory Board.
Sec. 418. Sixty-month period of employment requirement for application of govern-
ment pension offset exemption.
Sec. 419. Disclosure to workers of effect of windfall elimination provision and gov-
ernment pension offset provision.
Sec. 420. Post-1956 Military Wage Credits.
Sec. 420A. Elimination of disincentive to return-to-work for childhood disability
beneficiaries.
Subtitle C—Technical Amendments
Sec. 421. Technical correction relating to responsible agency head.
Sec. 422. Technical correction relating to retirement benefits of ministers.
Sec. 423. Technical corrections relating to domestic employment.
Sec. 424. Technical corrections of outdated references.
Sec. 425. Technical correction respecting self-employment income in community
property States.
Sec. 426. Technical amendments to the Railroad Retirement and Survivors’ Im-
provement Act of 2001.
Subtitle D—Amendments Related to Title XVI
Sec. 430. Exclusion from income for certain infrequent or irregular income and cer-
tain interest or dividend income.
Sec. 431. Uniform 9-month resource exclusion periods.
Sec. 432. Elimination of certain restrictions on the application of the student
earned income exclusion.
Sec. 433. Exception to retrospective monthly accounting for nonrecurring income.
Sec. 434. Removal of restriction on payment of benefits to children who are born
or who become blind or disabled after their military parents are sta-
tioned overseas.
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118 STAT. 495
PUBLIC LAW 108–203—MAR. 2, 2004
Sec. 435. Treatment of education-related income and resources.
Sec. 436. Monthly treatment of uniformed service compensation.
TITLE I—PROTECTION OF
BENEFICIARIES
Subtitle A—Representative Payees
SEC. 101. AUTHORITY TO REISSUE BENEFITS MISUSED BY ORGANIZA-
TIONAL REPRESENTATIVE PAYEES.
(a) TITLE II AMENDMENTS.—
(1) REISSUANCE
OF
BENEFITS.—Section 205(j)(5) of the
Social Security Act (42 U.S.C. 405(j)(5)) is amended by
inserting after the first sentence the following: ‘‘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 during a period
when misuse occurs, serves 15 or more individuals who are
beneficiaries under this title, title VIII, title XVI, or any com-
bination of such titles;
misuses all or part of an individual’s benefit paid to such representa-
tive payee, the Commissioner of Social Security shall certify for
payment to the beneficiary or the beneficiary’s alternative rep-
resentative payee an amount equal to the amount of such benefit
so misused. The provisions of this paragraph are subject to the
limitations of paragraph (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:
‘‘(8) For purposes of this subsection, misuse of benefits by
a representative payee occurs in any case in which the representa-
tive 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 Commissioner 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)) is amended further by inserting
after the first sentence the following: ‘‘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 Social Security shall
pay to the beneficiary or the beneficiary’s alternative represent-
ative payee an amount equal to the amount of such benefit
so misused. The provisions of this paragraph are subject to
the limitations of subsection (l)(2).’’.
Certification.
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118 STAT. 496
PUBLIC LAW 108–203—MAR. 2, 2004
(2) MISUSE
OF
BENEFITS
DEFINED.—Section 807 of such
Act (42 U.S.C. 1007) is amended by adding at the end the
following:
‘‘(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 payment 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: ‘‘In any case in which a rep-
resentative 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 individuals who are
beneficiaries under this title, title II, title VIII, or any combina-
tion of such titles;
misuses all or part of an individual’s benefit paid to such representa-
tive 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 such benefit so misused. The provi-
sions of this subparagraph are subject to the limitations of subpara-
graph (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 period and
inserting ‘‘; and’’; and
(C) by inserting after paragraph (13) the following:
‘‘(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 individual’s (or spouse’s) income for pur-
poses of this title as restitution for benefits under this title,
title II, or title VIII that a representative payee of such indi-
vidual (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:
‘‘(iv) For purposes of this paragraph, misuse of benefits by
a representative payee occurs in any case in which the representa-
tive 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 Commissioner of Social Security may prescribe by regulation
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118 STAT. 497
PUBLIC LAW 108–203—MAR. 2, 2004
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 Commissioner of Social Security makes
the determination of misuse on or after January 1, 1995.
SEC. 102. OVERSIGHT OF REPRESENTATIVE PAYEES.
(a) CERTIFICATION OF BONDING AND LICENSING REQUIREMENTS
FOR
NONGOVERNMENTAL
ORGANIZATIONAL
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 agency licensed or bonded
by the State’’ in subclause (I) and inserting ‘‘a certified
community-based nonprofit social service agency (as
defined in paragraph (9))’’;
(B) in paragraph (3)(F), by striking ‘‘community-based
nonprofit social service agencies’’ and inserting ‘‘certified
community-based nonprofit social service agencies (as
defined in paragraph (9))’’;
(C) in paragraph (4)(B), by striking ‘‘any community-
based nonprofit social service agency 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 paragraph (9))’’;
and
(D) by adding after paragraph (8) (as added by section
101(a)(2) of this Act) the following:
‘‘(9) For purposes of this subsection, the term ‘certified commu-
nity-based nonprofit social service agency’ means a community-
based nonprofit social service agency which is in compliance with
requirements, under regulations which shall be prescribed by the
Commissioner, for annual certification to the Commissioner that
it is bonded in accordance with requirements specified by the
Commissioner and that it is licensed in each State in which it
serves as a representative payee (if licensing is available in the
State) in accordance with requirements specified by the Commis-
sioner. Any such annual certification shall include a copy of any
independent audit on the agency which may have been performed
since the previous certification.’’.
(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 subclause (I) and inserting ‘‘a certified
community-based nonprofit social service agency (as
defined in subparagraph (I))’’;
(B) in subparagraph (D)(ii)—
(i) by striking ‘‘or any community-based’’ and all
that follows through ‘‘in accordance’’ in subclause (II)
and inserting ‘‘or any certified community-based non-
profit social service agency (as defined in subparagraph
(I)), if the agency, in accordance’’;
Records.
Regulations.
Applicability.
42 USC 405 note.
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118 STAT. 498
PUBLIC LAW 108–203—MAR. 2, 2004
(ii) by redesignating items (aa) and (bb) as sub-
clauses (I) and (II), respectively (and adjusting the
margins accordingly); and
(iii) by striking ‘‘subclause (II)(bb)’’ and inserting
‘‘subclause (II)’’; and
(C) by adding at the end the following:
‘‘(I) For purposes of this paragraph, the term ‘certified commu-
nity-based nonprofit social service agency’ means a community-
based nonprofit social service agency which is in compliance with
requirements, under regulations which shall be prescribed by the
Commissioner, for annual certification to the Commissioner that
it is bonded in accordance with requirements specified by the
Commissioner and that it is licensed in each State in which it
serves as a representative payee (if licensing is available in the
State) in accordance with requirements specified by the Commis-
sioner. Any such annual certification shall include a copy of any
independent audit on the agency which may have been performed
since the previous certification.’’.
(3) EFFECTIVE DATE.—The amendments made by this sub-
section shall take effect on the first day of the thirteenth
month beginning after the date of the enactment of this Act.
(b) PERIODIC ONSITE REVIEW.—
(1) TITLE
II
AMENDMENT.—Section 205(j)(6) of such Act
(42 U.S.C. 405(j)(6)) is amended to read as follows:
‘‘(6)(A) In addition to such other reviews of representative
payees as the Commissioner of Social Security may otherwise con-
duct, the Commissioner shall provide for the periodic onsite review
of any person or agency located in the United States that receives
the benefits payable under this title (alone or in combination with
benefits payable under title VIII or title XVI) to another individual
pursuant to the appointment of such person or agency as a rep-
resentative payee under this subsection, section 807, or section
1631(a)(2) in any case in which—
‘‘(i) the representative payee is a person who serves in
that capacity with respect to 15 or more such individuals;
‘‘(ii) the representative payee is a certified community-
based nonprofit social service agency (as defined in paragraph
(9) of this subsection or section 1631(a)(2)(I)); or
‘‘(iii) the representative payee is an agency (other than
an agency described in clause (ii)) that serves in that capacity
with respect to 50 or more such individuals.
‘‘(B) Within 120 days after the end of each fiscal year, the
Commissioner shall submit to the Committee on Ways and Means
of the House of Representatives and the Committee on Finance
of the Senate a report on the results of periodic onsite reviews
conducted during the fiscal year pursuant to subparagraph (A)
and of any other reviews of representative payees conducted during
such fiscal year in connection with benefits under this title. Each
such report shall describe in detail all problems identified in such
reviews and any corrective action taken or planned to be taken
to correct such problems, and shall include—
‘‘(i) the number of such reviews;
‘‘(ii) the results of such reviews;
‘‘(iii) the number of cases in which the representative payee
was changed and why;
‘‘(iv) the number of cases involving the exercise of expe-
dited, targeted oversight of the representative payee by the
Deadline.
Reports.
42 USC 405.
Records.
Regulations.
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118 STAT. 499
PUBLIC LAW 108–203—MAR. 2, 2004
Commissioner conducted upon receipt of an allegation of misuse
of funds, failure to pay a vendor, or a similar irregularity;
‘‘(v) the number of cases discovered in which there was
a misuse of funds;
‘‘(vi) how any such cases of misuse of funds were dealt
with by the Commissioner;
‘‘(vii) the final disposition of such cases of misuse of funds,
including any criminal penalties imposed; and
‘‘(viii) such other information as the Commissioner deems
appropriate.’’.
(2) TITLE VIII AMENDMENT.—Section 807 of such Act (as
amended by section 101(b)(2) of this Act) is amended further
by adding at the end the following:
‘‘(k) PERIODIC ONSITE REVIEW.—
‘‘(1) IN
GENERAL.—In addition to such other reviews of
representative payees as the Commissioner of Social Security
may otherwise conduct, the Commissioner may provide for the
periodic onsite review of any person or agency that receives
the benefits payable under this title (alone or in combination
with benefits payable under title II or title XVI) to another
individual pursuant to the appointment of such person or
agency as a representative payee under this section, section
205(j), or section 1631(a)(2) in any case in which—
‘‘(A) the representative payee is a person who serves
in that capacity with respect to 15 or more such individuals;
or
‘‘(B) the representative payee is an agency that serves
in that capacity with respect to 50 or more such individuals.
‘‘(2) REPORT.—Within 120 days after the end of each fiscal
year, the Commissioner shall submit to the Committee on Ways
and Means of the House of Representatives and the Committee
on Finance of the Senate a report on the results of periodic
onsite reviews conducted during the fiscal year pursuant to
paragraph (1) and of any other reviews of representative payees
conducted during such fiscal year in connection with benefits
under this title. Each such report shall describe in detail all
problems identified in such reviews and any corrective action
taken or planned to be taken to correct such problems, and
shall include—
‘‘(A) the number of such reviews;
‘‘(B) the results of such reviews;
‘‘(C) the number of cases in which the representative
payee was changed and why;
‘‘(D) the number of cases involving the exercise of
expedited, targeted oversight of the representative payee
by the Commissioner conducted upon receipt of an allega-
tion of misuse of funds, failure to pay a vendor, or a
similar irregularity;
‘‘(E) the number of cases discovered in which there
was a misuse of funds;
‘‘(F) how any such cases of misuse of funds were dealt
with by the Commissioner;
‘‘(G) the final disposition of such cases of misuse of
funds, including any criminal penalties imposed; and
‘‘(H) such other information as the Commissioner
deems appropriate.’’.
Deadline.
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118 STAT. 500
PUBLIC LAW 108–203—MAR. 2, 2004
(3) TITLE XVI AMENDMENT.—Section 1631(a)(2)(G) of such
Act (42 U.S.C. 1383(a)(2)(G)) is amended to read as follows:
‘‘(G)(i) In addition to such other reviews of representative
payees as the Commissioner of Social Security may otherwise con-
duct, the Commissioner shall provide for the periodic onsite review
of any person or agency that receives the benefits payable under
this title (alone or in combination with benefits payable under
title II or title VIII) to another individual pursuant to the appoint-
ment of the person or agency as a representative payee under
this paragraph, section 205(j), or section 807 in any case in which—
‘‘(I) the representative payee is a person who serves in
that capacity with respect to 15 or more such individuals;
‘‘(II) the representative payee is a certified community-
based nonprofit social service agency (as defined in subpara-
graph (I) of this paragraph or section 205(j)(9)); or
‘‘(III) the representative payee is an agency (other than
an agency described in subclause (II)) that serves in that
capacity with respect to 50 or more such individuals.
‘‘(ii) Within 120 days after the end of each fiscal year, the
Commissioner shall submit to the Committee on Ways and Means
of the House of Representatives and the Committee on Finance
of the Senate a report on the results of periodic onsite reviews
conducted during the fiscal year pursuant to clause (i) and of
any other reviews of representative payees conducted during such
fiscal year in connection with benefits under this title. Each such
report shall describe in detail all problems identified in the reviews
and any corrective action taken or planned to be taken to correct
the problems, and shall include—
‘‘(I) the number of the reviews;
‘‘(II) the results of such reviews;
‘‘(III) the number of cases in which the representative
payee was changed and why;
‘‘(IV) the number of cases involving the exercise of expe-
dited, targeted oversight of the representative payee by the
Commissioner conducted upon receipt of an allegation of misuse
of funds, failure to pay a vendor, or a similar irregularity;
‘‘(V) the number of cases discovered in which there was
a misuse of funds;
‘‘(VI) how any such cases of misuse of funds were dealt
with by the Commissioner;
‘‘(VII) the final disposition of such cases of misuse of funds,
including any criminal penalties imposed; and
‘‘(VIII) such other information as the Commissioner deems
appropriate.’’.
SEC. 103. DISQUALIFICATION FROM SERVICE AS REPRESENTATIVE
PAYEE 
OF 
PERSONS 
CONVICTED 
OF 
OFFENSES
RESULTING IN IMPRISONMENT FOR MORE THAN 1 YEAR
OR FLEEING PROSECUTION, CUSTODY, OR CONFINE-
MENT.
(a) TITLE II AMENDMENTS.—Section 205(j)(2) of the Social Secu-
rity Act (42 U.S.C. 405(j)(2)) is amended—
(1) in subparagraph (B)(i)—
(A) by striking ‘‘and’’ at the end of subclause (III);
(B) by redesignating subclause (IV) as subclause (VI);
and
(C) by inserting after subclause (III) the following:
Deadline.
Reports.
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‘‘(IV) obtain information concerning whether such person
has been convicted of any other offense under Federal or State
law which resulted in imprisonment for more than 1 year,
‘‘(V) obtain information concerning whether such person
is a person described in section 202(x)(1)(A)(iv), and’’;
(2) in subparagraph (B), by adding at the end the following:
‘‘(iii) Notwithstanding the provisions of section 552a of title
5, United States Code, or any other provision of Federal or State
law (other than section 6103 of the Internal Revenue Code of
1986 and section 1106(c) of this Act), the Commissioner shall furnish
any Federal, State, or local law enforcement officer, upon the writ-
ten request of the officer, with the current address, social security
account number, and photograph (if applicable) of any person inves-
tigated under this paragraph, if the officer furnishes the Commis-
sioner with the name of such person and such other identifying
information as may reasonably be required by the Commissioner
to establish the unique identity of such person, and notifies the
Commissioner that—
‘‘(I) such person is described in section 202(x)(1)(A)(iv),
‘‘(II) such person has information that is necessary for
the officer to conduct the officer’s official duties, and
‘‘(III) the location or apprehension of such person is within
the officer’s official duties.’’;
(3) in subparagraph (C)(i)(II)—
(A) by striking ‘‘subparagraph (B)(i)(IV),,’’ and inserting
‘‘subparagraph (B)(i)(VI)’’; and
(B) by striking ‘‘section 1631(a)(2)(B)(ii)(IV)’’ and
inserting ‘‘section 1631(a)(2)(B)(ii)(VI)’’; and
(4) in subparagraph (C)(i)—
(A) by striking ‘‘or’’ at the end of subclause (II);
(B) by striking the period at the end of subclause
(III) and inserting a comma; and
(C) by adding at the end the following:
‘‘(IV) such person has previously been convicted as
described in subparagraph (B)(i)(IV), unless the Commissioner
determines that such certification would be appropriate not-
withstanding such conviction, or
‘‘(V) such person is a person described in section
202(x)(1)(A)(iv).’’.
(b) TITLE VIII AMENDMENTS.—Section 807 of such Act (42
U.S.C. 1007) is amended—
(1) in subsection (b)(2)—
(A) by striking ‘‘and’’ at the end of subparagraph (C);
(B) by redesignating subparagraph (D) as subpara-
graph (F); and
(C) by inserting after subparagraph (C) the following:
‘‘(D) obtain information concerning whether such per-
son has been convicted of any other offense under Federal
or State law which resulted in imprisonment for more
than 1 year;
‘‘(E) obtain information concerning whether such per-
son is a person described in section 804(a)(2); and’’;
(2) in subsection (b), by adding at the end the following:
‘‘(3) Notwithstanding the provisions of section 552a of title
5, United States Code, or any other provision of Federal or
State law (other than section 6103 of the Internal Revenue
Code of 1986 and section 1106(c) of this Act), the Commissioner
Identifying
information.
Identifying
information.
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shall furnish any Federal, State, or local law enforcement
officer, upon the written request of the officer, with the current
address, social security account number, and photograph (if
applicable) of any person investigated under this subsection,
if the officer furnishes the Commissioner with the name of
such person and such other identifying information as may
reasonably be required by the Commissioner to establish the
unique identity of such person, and notifies the Commissioner
that—
‘‘(A) such person is described in section 804(a)(2),
‘‘(B) such person has information that is necessary
for the officer to conduct the officer’s official duties, and
‘‘(C) the location or apprehension of such person is
within the officer’s official duties.’’; and
(3) in subsection (d)(1)—
(A) by striking ‘‘or’’ at the end of subparagraph (B);
(B) by striking the period at the end of subparagraph
(C) and inserting a semicolon; and
(C) by adding at the end the following:
‘‘(D) such person has previously been convicted as
described in subsection (b)(2)(D), unless the Commissioner
determines that such payment would be appropriate not-
withstanding such conviction; or
‘‘(E) such person is a person described in section
804(a)(2).’’.
(c) TITLE XVI AMENDMENTS.—Section 1631(a)(2)(B) of such Act
(42 U.S.C. 1383(a)(2)(B)) is amended—
(1) in clause (ii)—
(A) by striking ‘‘and’’ at the end of subclause (III);
(B) by redesignating subclause (IV) as subclause (VI);
and
(C) by inserting after subclause (III) the following:
‘‘(IV) obtain information concerning whether the person
has been convicted of any other offense under Federal or State
law which resulted in imprisonment for more than 1 year;
‘‘(V) obtain information concerning whether such person
is a person described in section 1611(e)(4)(A); and’’;
(2) in clause (iii)(II)—
(A) by striking ‘‘clause (ii)(IV)’’ and inserting ‘‘clause
(ii)(VI)’’; and
(B) by striking ‘‘section 205(j)(2)(B)(i)(IV)’’ and inserting
‘‘section 205(j)(2)(B)(i)(VI)’’;
(3) in clause (iii)—
(A) by striking ‘‘or’’ at the end of subclause (II);
(B) by striking the period at the end of subclause
(III) and inserting a semicolon; and
(C) by adding at the end the following:
‘‘(IV) the person has previously been convicted as described
in clause (ii)(IV) of this subparagraph, unless the Commissioner
determines that the payment would be appropriate notwith-
standing the conviction; or
‘‘(V) such person is a person described in section
1611(e)(4)(A).’’; and
(4) by adding at the end the following:
‘‘(xiv) Notwithstanding the provisions of section 552a of title
5, United States Code, or any other provision of Federal or State
law (other than section 6103 of the Internal Revenue Code of
Identifying
information.
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118 STAT. 503
PUBLIC LAW 108–203—MAR. 2, 2004
1986 and section 1106(c) of this Act), the Commissioner shall furnish
any Federal, State, or local law enforcement officer, upon the writ-
ten request of the officer, with the current address, social security
account number, and photograph (if applicable) of any person inves-
tigated under this subparagraph, if the officer furnishes the
Commissioner with the name of such person and such other identi-
fying information as may reasonably be required by the Commis-
sioner to establish the unique identity of such person, and notifies
the Commissioner that—
‘‘(I) such person is described in section 1611(e)(4)(A),
‘‘(II) such person has information that is necessary for
the officer to conduct the officer’s official duties, and
‘‘(III) the location or apprehension of such person is within
the officer’s official duties.’’.
(d) EFFECTIVE DATE.—The amendments made by this section
shall take effect on the first day of the thirteenth month beginning
after the date of the enactment of this Act.
(e) REPORT TO CONGRESS.—The Commissioner of Social Secu-
rity, in consultation with the Inspector General of the Social Secu-
rity Administration, shall prepare a report evaluating whether the
existing procedures and reviews for the qualification (including
disqualification) of representative payees are sufficient to enable
the Commissioner to protect benefits from being misused by rep-
resentative payees. The Commissioner shall submit the report to
the Committee on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate no later than 270
days after the date of the enactment of this Act. The Commissioner
shall include in such report any recommendations that the Commis-
sioner considers appropriate.
SEC. 104. FEE FORFEITURE IN CASE OF BENEFIT MISUSE BY REP-
RESENTATIVE PAYEES.
(a) TITLE II AMENDMENTS.—Section 205(j)(4)(A)(i) of the Social
Security Act (42 U.S.C. 405(j)(4)(A)(i)) is amended—
(1) in the first sentence, by striking ‘‘A’’ and inserting
‘‘Except as provided in the next sentence, a’’; and
(2) in the second sentence, by striking ‘‘The Secretary’’
and inserting the following: ‘‘A qualified organization may not
collect a fee from an individual for any month with respect
to which the Commissioner of Social Security or a court of
competent jurisdiction has determined that the organization
misused all or part of the individual’s benefit, and any amount
so collected by the qualified organization for such month shall
be treated as a misused part of the individual’s benefit for
purposes of paragraphs (5) and (6). The Commissioner’’.
(b) TITLE XVI AMENDMENTS.—Section 1631(a)(2)(D)(i) of such
Act (42 U.S.C. 1383(a)(2)(D)(i)) is amended—
(1) in the first sentence, by striking ‘‘A’’ and inserting
‘‘Except as provided in the next sentence, a’’; and
(2) in the second sentence, by striking ‘‘The Commissioner’’
and inserting the following: ‘‘A qualified organization may not
collect a fee from an individual for any month with respect
to which the Commissioner of Social Security or a court of
competent jurisdiction has determined that the organization
misused all or part of the individual’s benefit, and any amount
so collected by the qualified organization for such month shall
Deadline.
42 USC 405 note.
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118 STAT. 504
PUBLIC LAW 108–203—MAR. 2, 2004
be treated as a misused part of the individual’s benefit for
purposes of subparagraphs (E) and (F). The Commissioner’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to any month involving benefit misuse by a representa-
tive payee in any case with respect to which the Commissioner
of Social Security or a court of competent jurisdiction makes the
determination of misuse after 180 days after the date of the enact-
ment of this Act.
SEC. 105. LIABILITY OF REPRESENTATIVE PAYEES FOR MISUSED
BENEFITS.
(a) TITLE II AMENDMENTS.—Section 205(j) of the Social Security
Act (42 U.S.C. 405(j)) (as amended by sections 101 and 102) is
amended further—
(1) by redesignating paragraphs (7), (8), and (9) as para-
graphs (8), (9), and (10), respectively;
(2) in paragraphs (2)(C)(v), (3)(F), and (4)(B), by striking
‘‘paragraph (9)’’ and inserting ‘‘paragraph (10)’’;
(3) in paragraph (6)(A)(ii), by striking ‘‘paragraph (9)’’ and
inserting ‘‘paragraph (10)’’; and
(4) by inserting after paragraph (6) the following:
‘‘(7)(A) If the Commissioner of Social Security or a court of
competent jurisdiction determines that a representative payee that
is not a Federal, State, or local government agency has misused
all or part of an individual’s benefit that was paid to such represent-
ative payee under this subsection, the representative payee shall
be liable for the amount misused, and such amount (to the extent
not repaid by the representative payee) shall be treated as an
overpayment of benefits under this title to the representative payee
for all purposes of this Act and related laws pertaining to the
recovery of such overpayments. Subject to subparagraph (B), upon
recovering all or any part of such amount, the Commissioner shall
certify an amount equal to the recovered amount for payment
to such individual or such individual’s alternative representative
payee.
‘‘(B) The total of the amount certified for payment to such
individual or such individual’s alternative representative payee
under subparagraph (A) and the amount certified for payment
under paragraph (5) may not exceed the total benefit amount mis-
used by the representative payee with respect to such individual.’’.
(b) TITLE VIII AMENDMENT.—Section 807 of such Act (as
amended by section 102(b)(2)) is amended further by adding at
the end the following:
‘‘(l) LIABILITY FOR MISUSED AMOUNTS.—
‘‘(1) IN GENERAL.—If the Commissioner of Social Security
or a court of competent jurisdiction determines that a represent-
ative payee that is not a Federal, State, or local government
agency has misused all or part of a qualified individual’s benefit
that was paid to such representative payee under this section,
the representative payee shall be liable for the amount misused,
and such amount (to the extent not repaid by the representative
payee) shall be treated as an overpayment of benefits under
this title to the representative payee for all purposes of this
Act and related laws pertaining to the recovery of such overpay-
ments. Subject to paragraph (2), upon recovering all or any
part of such amount, the Commissioner shall make payment
of an amount equal to the recovered amount to such qualified
Certification.
Applicability.
42 USC 405 note.
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118 STAT. 505
PUBLIC LAW 108–203—MAR. 2, 2004
individual or such qualified individual’s alternative representa-
tive payee.
‘‘(2) LIMITATION.—The total of the amount paid to such
individual or such individual’s alternative representative payee
under paragraph (1) and the amount paid under subsection
(i) may not exceed the total benefit amount misused by the
representative payee with respect to such individual.’’.
(c) TITLE XVI AMENDMENTS.—Section 1631(a)(2) of such Act
(42 U.S.C. 1383(a)(2)) (as amended by section 102(b)(3)) is amended
further—
(1) in subparagraph (G)(i)(II), by striking ‘‘section 205(j)(9)’’
and inserting ‘‘section 205(j)(10)’’; and
(2) by striking subparagraph (H) and inserting the fol-
lowing:
‘‘(H)(i) If the Commissioner of Social Security or a court of
competent jurisdiction determines that a representative payee that
is not a Federal, State, or local government agency has misused
all or part of an individual’s benefit that was paid to the representa-
tive payee under this paragraph, the representative payee shall
be liable for the amount misused, and the amount (to the extent
not repaid by the representative payee) shall be treated as an
overpayment of benefits under this title to the representative payee
for all purposes of this Act and related laws pertaining to the
recovery of the overpayments. Subject to clause (ii), upon recovering
all or any part of the amount, the Commissioner shall make pay-
ment of an amount equal to the recovered amount to such individual
or such individual’s alternative representative payee.
‘‘(ii) The total of the amount paid to such individual or such
individual’s alternative representative payee under clause (i) and
the amount paid under subparagraph (E) may not exceed the total
benefit amount misused by the representative payee with respect
to such individual.’’.
(d) EFFECTIVE DATE.—The amendments made by this section
shall apply to benefit misuse by a representative payee in any
case with respect to which the Commissioner of Social Security
or a court of competent jurisdiction makes the determination of
misuse after 180 days after the date of the enactment of this
Act.
SEC. 106. AUTHORITY TO REDIRECT DELIVERY OF BENEFIT PAYMENTS
WHEN A REPRESENTATIVE PAYEE FAILS TO PROVIDE
REQUIRED ACCOUNTING.
(a) TITLE II AMENDMENTS.—Section 205(j)(3) of the Social Secu-
rity Act (42 U.S.C. 405(j)(3)) (as amended by sections 102(a)(1)(B)
and 105(a)(2)) is amended—
(1) by redesignating subparagraphs (E) and (F) as subpara-
graphs (F) and (G), respectively; and
(2) by inserting after subparagraph (D) the following:
‘‘(E) In any case in which the person described in subparagraph
(A) or (D) receiving payments on behalf of another fails to submit
a report required by the Commissioner of Social Security under
subparagraph (A) or (D), the Commissioner may, after furnishing
notice to such person and the individual entitled to such payment,
require that such person appear in person at a field office of
the Social Security Administration serving the area in which the
individual resides in order to receive such payments.’’.
Applicability.
42 USC 405 note.
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118 STAT. 506
PUBLIC LAW 108–203—MAR. 2, 2004
(b) TITLE VIII AMENDMENTS.—Section 807(h) of such Act (42
U.S.C. 1007(h)) is amended—
(1) by redesignating paragraphs (3) and (4) as paragraphs
(4) and (5), respectively; and
(2) by inserting after paragraph (2) the following:
‘‘(3) AUTHORITY TO REDIRECT DELIVERY OF BENEFIT PAY-
MENTS
WHEN
A
REPRESENTATIVE
PAYEE
FAILS
TO
PROVIDE
REQUIRED
ACCOUNTING.—In any case in which the person
described in paragraph (1) or (2) receiving benefit payments
on behalf of a qualified individual fails to submit a report
required by the Commissioner of Social Security under para-
graph (1) or (2), the Commissioner may, after furnishing notice
to such person and the qualified individual, require that such
person appear in person at a United States Government facility
designated by the Social Security Administration as serving
the area in which the qualified individual resides in order
to receive such benefit payments.’’.
(c) TITLE XVI AMENDMENT.—Section 1631(a)(2)(C) of such Act
(42 U.S.C. 1383(a)(2)(C)) is amended by adding at the end the
following:
‘‘(v) In any case in which the person described in clause (i)
or (iv) receiving payments on behalf of another fails to submit
a report required by the Commissioner of Social Security under
clause (i) or (iv), the Commissioner may, after furnishing notice
to the person and the individual entitled to the payment, require
that such person appear in person at a field office of the Social
Security Administration serving the area in which the individual
resides in order to receive such payments.’’.
(d) EFFECTIVE DATE.—The amendments made by this section
shall take effect 180 days after the date of the enactment of this
Act.
SEC. 107. SURVEY OF USE OF PAYMENTS BY REPRESENTATIVE PAYEES.
(a) IN GENERAL.—Section 1110 of the Social Security Act (42
U.S.C. 1310) is amended by adding at the end the following:
‘‘(c)(1) In addition to the amount otherwise appropriated in
any other law to carry out subsection (a) for fiscal year 2004,
up to $8,500,000 is authorized and appropriated and shall be used
by the Commissioner of Social Security under this subsection for
purposes of conducting a statistically valid survey to determine
how payments made to individuals, organizations, and State or
local government agencies that are representative payees for bene-
fits paid under title II or XVI are being managed and used on
behalf of the beneficiaries for whom such benefits are paid.
‘‘(2) Not later than 18 months after the date of enactment
of this subsection, the Commissioner of Social Security shall submit
a report on the survey conducted in accordance with paragraph
(1) to the Committee on Ways and Means of the House of Represent-
atives and the Committee on Finance of the Senate.’’.
Deadline.
Reports.
42 USC 405 note.
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PUBLIC LAW 108–203—MAR. 2, 2004
Subtitle B—Enforcement
SEC. 111. CIVIL MONETARY PENALTY AUTHORITY WITH RESPECT TO
WRONGFUL 
CONVERSIONS 
BY 
REPRESENTATIVE
PAYEES.
(a) IN GENERAL.—Section 1129(a) of the Social Security Act
(42 U.S.C. 1320a–8) is amended by adding at the end the following:
‘‘(3) Any person (including an organization, agency, or other
entity) who, having received, while acting in the capacity of a
representative payee pursuant to section 205(j), 807, or 1631(a)(2),
a payment under title II, VIII, or XVI for the use and benefit
of another individual, converts such payment, or any part thereof,
to a use that such person knows or should know is other than
for the use and benefit of such other individual shall be subject
to, in addition to any other penalties that may be prescribed by
law, a civil money penalty of not more than $5,000 for each such
conversion. Such person shall also be subject to an assessment,
in lieu of damages sustained by the United States resulting from
the conversion, of not more than twice the amount of any payments
so converted.’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall apply with respect to violations committed after the date
of the enactment of this Act.
TITLE II—PROGRAM PROTECTIONS
SEC. 201. CIVIL MONETARY PENALTY AUTHORITY WITH RESPECT TO
WITHHOLDING OF MATERIAL FACTS.
(a) TREATMENT OF WITHHOLDING OF MATERIAL FACTS.—
(1) CIVIL PENALTIES.—Section 1129(a)(1) of the Social Secu-
rity Act (42 U.S.C. 1320a–8(a)(1)) is amended—
(A) by striking ‘‘who’’ in the first sentence and inserting
‘‘who—’’;
(B) by striking ‘‘makes’’ in the first sentence and all
that follows through ‘‘shall be subject to,’’ and inserting
the following:
‘‘(A) makes, or causes to be made, a statement or represen-
tation of a material fact, for use in determining any initial
or continuing right to or the amount of monthly insurance
benefits under title II or benefits or payments under title VIII
or XVI, that the person knows or should know is false or
misleading,
‘‘(B) makes such a statement or representation for such
use with knowing disregard for the truth, or
‘‘(C) omits from a statement or representation for such
use, or otherwise withholds disclosure of, a fact which the
person knows or should know is material to the determination
of any initial or continuing right to or the amount of monthly
insurance benefits under title II or benefits or payments under
title VIII or XVI, if the person knows, or should know, that
the statement or representation with such omission is false
or misleading or that the withholding of such disclosure is
misleading,
shall be subject to,’’;
Applicability.
42 USC 1320a–8
note.
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118 STAT. 508
PUBLIC LAW 108–203—MAR. 2, 2004
(C) by inserting ‘‘or each receipt of such benefits or
payments while withholding disclosure of such fact’’ after
‘‘each such statement or representation’’ in the first sen-
tence;
(D) by inserting ‘‘or because of such withholding of
disclosure of a material fact’’ after ‘‘because of such state-
ment or representation’’ in the second sentence; and
(E) by inserting ‘‘or such a withholding of disclosure’’
after ‘‘such a statement or representation’’ in the second
sentence.
(2) ADMINISTRATIVE PROCEDURE FOR IMPOSING PENALTIES.—
Section 1129A(a) of such Act (42 U.S.C. 1320a–8a(a)) is
amended—
(A) by striking ‘‘who’’ the first place it appears and
inserting ‘‘who—’’; and
(B) by striking ‘‘makes’’ and all that follows through
‘‘shall be subject to,’’ and inserting the following:
‘‘(1) makes, or causes to be made, a statement or represen-
tation of a material fact, for use in determining any initial
or continuing right to or the amount of monthly insurance
benefits under title II or benefits or payments under title XVI
that the person knows or should know is false or misleading,
‘‘(2) makes such a statement or representation for such
use with knowing disregard for the truth, or
‘‘(3) omits from a statement or representation for such
use, or otherwise withholds disclosure of, a fact which the
person knows or should know is material to the determination
of any initial or continuing right to or the amount of monthly
insurance benefits under title II or benefits or payments under
title XVI, if the person knows, or should know, that the state-
ment or representation with such omission is false or mis-
leading or that the withholding of such disclosure is misleading,
shall be subject to,’’.
(b) CLARIFICATION OF TREATMENT OF RECOVERED AMOUNTS.—
Section 1129(e)(2)(B) of such Act (42 U.S.C. 1320a–8(e)(2)(B)) is
amended by striking ‘‘In the case of amounts recovered arising
out of a determination relating to title VIII or XVI,’’ and inserting
‘‘In the case of any other amounts recovered under this section,’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 1129(b)(3)(A) of such Act (42 U.S.C. 1320a–
8(b)(3)(A)) is amended by striking ‘‘charging fraud or false
statements’’.
(2) Section 1129(c)(1) of such Act (42 U.S.C. 1320a–8(c)(1))
is amended by striking ‘‘and representations’’ and inserting
‘‘, representations, or actions’’.
(3) Section 1129(e)(1)(A) of such Act (42 U.S.C. 1320a–
8(e)(1)(A)) is amended by striking ‘‘statement or representation
referred to in subsection (a) was made’’ and inserting ‘‘violation
occurred’’.
(d) EFFECTIVE DATE.—The amendments made by this section
shall apply with respect to violations committed after the date
on which the Commissioner of Social Security implements the cen-
tralized computer file described in section 202.
Applicability.
42 USC 1320a–8
note.
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PUBLIC LAW 108–203—MAR. 2, 2004
SEC. 202. ISSUANCE BY COMMISSIONER OF SOCIAL SECURITY OF
RECEIPTS TO ACKNOWLEDGE SUBMISSION OF REPORTS
OF CHANGES IN WORK OR EARNINGS STATUS OF DIS-
ABLED BENEFICIARIES.
Effective as soon as possible, but not later than 1 year after
the date of the enactment of this Act, until such time as the
Commissioner of Social Security implements a centralized computer
file recording the date of the submission of information by a disabled
beneficiary (or representative) regarding a change in the bene-
ficiary’s work or earnings status, the Commissioner shall issue
a receipt to the disabled beneficiary (or representative) each time
he or she submits documentation, or otherwise reports to the
Commissioner, on a change in such status.
SEC. 203. DENIAL OF TITLE II BENEFITS TO PERSONS FLEEING
PROSECUTION, CUSTODY, OR CONFINEMENT, AND TO
PERSONS VIOLATING PROBATION OR PAROLE.
(a) IN GENERAL.—Section 202(x) of the Social Security Act
(42 U.S.C. 402(x)) is amended—
(1) in the heading, by striking ‘‘Prisoners’’ and all that
follows and inserting the following: ‘‘Prisoners, Certain Other
Inmates of Publicly Funded Institutions, Fugitives, Proba-
tioners, and Parolees’’;
(2) in paragraph (1)(A)(ii)(IV), by striking ‘‘or’’ at the end;
(3) in paragraph (1)(A)(iii), by striking the period at the
end and inserting a comma;
(4) by inserting after paragraph (1)(A)(iii) the following:
‘‘(iv) is fleeing to avoid prosecution, or custody or confine-
ment after conviction, under the laws of the place from which
the person flees, for a crime, or an attempt to commit a crime,
which is a felony under the laws of the place from which
the person flees, or, in jurisdictions that do not define crimes
as felonies, is punishable by death or imprisonment for a term
exceeding 1 year regardless of the actual sentence imposed,
or
‘‘(v) is violating a condition of probation or parole imposed
under Federal or State law.’’;
(5) by adding at the end of paragraph (1)(B) the following:
‘‘(iii) Notwithstanding subparagraph (A), the Commissioner
shall, for good cause shown, pay the individual benefits that have
been withheld or would otherwise be withheld pursuant to clause
(iv) or (v) of subparagraph (A) if the Commissioner determines
that—
‘‘(I) a court of competent jurisdiction has found the indi-
vidual not guilty of the criminal offense, dismissed the charges
relating to the criminal offense, vacated the warrant for arrest
of the individual for the criminal offense, or issued any similar
exonerating order (or taken similar exonerating action), or
‘‘(II) the individual was erroneously implicated in connec-
tion with the criminal offense by reason of identity fraud.
‘‘(iv) Notwithstanding subparagraph (A), the Commissioner
may, for good cause shown based on mitigating circumstances,
pay the individual benefits that have been withheld or would other-
wise be withheld pursuant to clause (iv) or (v) of subparagraph
(A) if the Commissioner determines that—
Effective date.
Records.
42 USC 902 note.
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118 STAT. 510
PUBLIC LAW 108–203—MAR. 2, 2004
‘‘(I) the offense described in clause (iv) or underlying the
imposition of the probation or parole described in clause (v)
was nonviolent and not drug-related, and
‘‘(II) in the case of an individual from whom benefits have
been withheld or otherwise would be withheld pursuant to
subparagraph (A)(v), the action that resulted in the violation
of a condition of probation or parole was nonviolent and not
drug-related.’’; and
(6) in paragraph (3), by adding at the end the following:
‘‘(C) Notwithstanding the provisions of section 552a of title
5, United States Code, or any other provision of Federal or State
law (other than section 6103 of the Internal Revenue Code of
1986 and section 1106(c) of this Act), the Commissioner shall furnish
any Federal, State, or local law enforcement officer, upon the writ-
ten request of the officer, with the current address, Social Security
number, and photograph (if applicable) of any beneficiary under
this title, if the officer furnishes the Commissioner with the name
of the beneficiary, and other identifying information as reasonably
required by the Commissioner to establish the unique identity
of the beneficiary, and notifies the Commissioner that—
‘‘(i) the beneficiary is described in clause (iv) or (v) of
paragraph (1)(A); and
‘‘(ii) the location or apprehension of the beneficiary is within
the officer’s official duties.’’.
(b) CONFORMING AMENDMENTS TO TITLE XVI.—Section 1611(e)
of the Social Security Act (42 U.S.C. 1382(e)) is amended—
(1) in paragraph (4)—
(A) by redesignating subparagraphs (A) and (B) as
clauses (i) and (ii), respectively;
(B) by inserting ‘‘(A)’’ after ‘‘(4)’’;
(C) in clause (i) of subparagraph (A) (as redesignated
by subparagraph (A)), by striking ‘‘or which, in the case
of the State of New Jersey, is a high misdemeanor under
the laws of such State’’ and inserting ‘‘or, in jurisdictions
that do not define crimes as felonies, is punishable by
death or imprisonment for a term exceeding 1 year regard-
less of the actual sentence imposed’’; and
(D) by adding at the end the following:
‘‘(B) Notwithstanding subparagraph (A), the Commissioner
shall, for good cause shown, treat the person referred to in subpara-
graph (A) as an eligible individual or eligible spouse if the Commis-
sioner determines that—
‘‘(i) a court of competent jurisdiction has found the person
not guilty of the criminal offense, dismissed the charges relating
to the criminal offense, vacated the warrant for arrest of the
person for the criminal offense, or issued any similar exon-
erating order (or taken similar exonerating action), or
‘‘(ii) the person was erroneously implicated in connection
with the criminal offense by reason of identity fraud.
‘‘(C) Notwithstanding subparagraph (A), the Commissioner
may, for good cause shown based on mitigating circumstances,
treat the person referred to in subparagraph (A) as an eligible
individual or eligible spouse if the Commissioner determines that—
‘‘(i) the offense described in subparagraph (A)(i) or under-
lying the imposition of the probation or parole described in
subparagraph (A)(ii) was nonviolent and not drug-related, and
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‘‘(ii) in the case of a person who is not considered an
eligible individual or eligible spouse pursuant to subparagraph
(A)(ii), the action that resulted in the violation of a condition
of probation or parole was nonviolent and not drug-related.’’;
and
(2) in paragraph (5), by striking subparagraphs (A) and
(B) and inserting the following:
‘‘(A) the recipient is described in clause (i) or (ii) of para-
graph (4)(A); and
‘‘(B) the location or apprehension of the recipient is within
the officer’s official duties.’’.
(c) CONFORMING AMENDMENT.—Section 804(a)(2) of the Social
Security Act (42 U.S.C. 1004(a)(2)) is amended by striking ‘‘or
which, in the case of the State of New Jersey, is a high misdemeanor
under the laws of such State’’ and inserting ‘‘or, in jurisdictions
that do not define crimes as felonies, is punishable by death or
imprisonment for a term exceeding 1 year regardless of the actual
sentence imposed’’.
(d) EFFECTIVE DATE.—The amendments made by this section
shall take effect on the first day of the first month that begins
on or after the date that is 9 months after the date of enactment
of this Act.
SEC. 204. REQUIREMENTS RELATING TO OFFERS TO PROVIDE FOR
A FEE, A PRODUCT OR SERVICE AVAILABLE WITHOUT
CHARGE FROM THE SOCIAL SECURITY ADMINISTRATION.
(a) IN GENERAL.—Section 1140 of the Social Security Act (42
U.S.C. 1320b–10) is amended—
(1) in subsection (a), by adding at the end the following:
‘‘(4)(A) No person shall offer, for a fee, to assist an individual
to obtain a product or service that the person knows or should
know is provided free of charge by the Social Security Administra-
tion unless, at the time the offer is made, the person provides
to the individual to whom the offer is tendered a notice that—
‘‘(i) explains that the product or service is available free
of charge from the Social Security Administration, and
‘‘(ii) complies with standards prescribed by the Commis-
sioner of Social Security respecting the content of such notice
and its placement, visibility, and legibility.
‘‘(B) Subparagraph (A) shall not apply to any offer—
‘‘(i) to serve as a claimant representative in connection
with a claim arising under title II, title VIII, or title XVI;
or
‘‘(ii) to prepare, or assist in the preparation of, an individ-
ual’s plan for achieving self-support under title XVI.’’; and
(2) in the heading, by striking ‘‘PROHIBITION OF MISUSE
OF SYMBOLS, EMBLEMS, OR NAMES IN REFERENCE’’ and inserting
‘‘PROHIBITIONS RELATING TO REFERENCES’’.
(b) EFFECTIVE DATE.—The amendments made by this section
shall apply to offers of assistance made after the sixth month
ending after the Commissioner of Social Security promulgates final
regulations prescribing the standards applicable to the notice
required to be provided in connection with such offer. The Commis-
sioner shall promulgate such final regulations within 1 year after
the date of the enactment of this Act.
Regulations.
Deadline.
Applicability.
42 USC
1320b–10 note.
42 USC 402 note.
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SEC. 205. REFUSAL TO RECOGNIZE CERTAIN INDIVIDUALS AS CLAIM-
ANT REPRESENTATIVES.
Section 206(a)(1) of the Social Security Act (42 U.S.C. 406(a)(1))
is amended by inserting after the second sentence the following:
‘‘Notwithstanding the preceding sentences, the Commissioner, after
due notice and opportunity for hearing, (A) may refuse to recognize
as a representative, and may disqualify a representative already
recognized, any attorney who has been disbarred or suspended
from any court or bar to which he or she was previously admitted
to practice or who has been disqualified from participating in or
appearing before any Federal program or agency, and (B) may
refuse to recognize, and may disqualify, as a non-attorney represent-
ative any attorney who has been disbarred or suspended from
any court or bar to which he or she was previously admitted
to practice. A representative who has been disqualified or sus-
pended pursuant to this section from appearing before the Social
Security Administration as a result of collecting or receiving a
fee in excess of the amount authorized shall be barred from
appearing before the Social Security Administration as a representa-
tive until full restitution is made to the claimant and, thereafter,
may be considered for reinstatement only under such rules as
the Commissioner may prescribe.’’.
SEC. 206. CRIMINAL PENALTY FOR CORRUPT OR FORCIBLE INTER-
FERENCE WITH ADMINISTRATION OF SOCIAL SECURITY
ACT.
Part A of title XI of the Social Security Act (42 U.S.C. 1301
et seq.) is amended by inserting after section 1129A the following:
‘‘ATTEMPTS TO INTERFERE WITH ADMINISTRATION OF SOCIAL
SECURITY ACT
‘‘SEC. 1129B. Whoever corruptly or by force or threats of force
(including any threatening letter or communication) attempts to
intimidate or impede any officer, employee, or contractor of the
Social Security Administration (including any State employee of
a disability determination service or any other individual designated
by the Commissioner of Social Security) acting in an official capacity
to carry out a duty under this Act, or in any other way corruptly
or by force or threats of force (including any threatening letter
or communication) obstructs or impedes, or attempts to obstruct
or impede, the due administration of this Act, shall be fined not
more than $5,000, imprisoned not more than 3 years, or both,
except that if the offense is committed only by threats of force,
the person shall be fined not more than $3,000, imprisoned not
more than 1 year, or both. In this subsection, the term ‘threats
of force’ means threats of harm to the officer or employee of the
United States or to a contractor of the Social Security Administra-
tion, or to a member of the family of such an officer or employee
or contractor.’’.
SEC. 207. USE OF SYMBOLS, EMBLEMS, OR NAMES IN REFERENCE TO
SOCIAL SECURITY OR MEDICARE.
(a) IN GENERAL.—Section 1140(a)(1) of the Social Security Act
(42 U.S.C. 1320b–10(a)(1)) is amended—
(1) in subparagraph (A), by inserting ‘‘ ‘Centers for Medicare
& Medicaid Services’,’’ after ‘‘ ‘Health Care Financing Adminis-
tration’,’’, by striking ‘‘or ‘Medicaid’, ’’ and inserting ‘‘ ‘Medicaid’,
42 USC
1320a–8b.
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118 STAT. 513
PUBLIC LAW 108–203—MAR. 2, 2004
‘Death Benefits Update’, ‘Federal Benefit Information’, ‘Funeral
Expenses’, or ‘Final Supplemental Plan’,’’ and by inserting
‘‘ ‘CMS’,’’ after ‘‘ ‘HCFA’,’’;
(2) in subparagraph (B), by inserting ‘‘Centers for Medicare
& Medicaid Services,’’ after ‘‘Health Care Financing Adminis-
tration,’’ each place it appears; and
(3) in the matter following subparagraph (B), by striking
‘‘the Health Care Financing Administration,’’ each place it
appears and inserting ‘‘the Centers for Medicare & Medicaid
Services,’’.
(b) EFFECTIVE DATE.—The amendments made by this section
shall apply to items sent after 180 days after the date of the
enactment of this Act.
SEC. 208. DISQUALIFICATION FROM PAYMENT DURING TRIAL WORK
PERIOD UPON CONVICTION OF FRAUDULENT CONCEAL-
MENT OF WORK ACTIVITY.
(a) IN GENERAL.—Section 222(c) of the Social Security Act (42
U.S.C. 422(c)) is amended by adding at the end the following:
‘‘(5) Upon conviction by a Federal court that an individual
has fraudulently concealed work activity during a period of trial
work from the Commissioner of Social Security by—
‘‘(A) providing false information to the Commissioner of
Social Security as to whether the individual had earnings in
or for a particular period, or as to the amount thereof;
‘‘(B) receiving disability insurance benefits under this title
while engaging in work activity under another identity,
including under another social security account number or a
number purporting to be a social security account number;
or
‘‘(C) taking other actions to conceal work activity with
an intent fraudulently to secure payment in a greater amount
than is due or when no payment is authorized,
no benefit shall be payable to such individual under this title
with respect to a period of disability for any month before such
conviction during which the individual rendered services during
the period of trial work with respect to which the fraudulently
concealed work activity occurred, and amounts otherwise due under
this title as restitution, penalties, assessments, fines, or other repay-
ments shall in all cases be in addition to any amounts for which
such individual is liable as overpayments by reason of such conceal-
ment.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply with respect to work activity performed after the date
of the enactment of this Act.
SEC. 209. AUTHORITY FOR JUDICIAL ORDERS OF RESTITUTION.
(a) AMENDMENTS TO TITLE II.—Section 208 of the Social Secu-
rity Act (42 U.S.C. 408) is amended—
(1) by redesignating subsections (b), (c), and (d) as sub-
sections (c), (d), and (e), respectively;
(2) by inserting after subsection (a) the following:
‘‘(b)(1) Any Federal court, when sentencing a defendant con-
victed of an offense under subsection (a), may order, in addition
to or in lieu of any other penalty authorized by law, that the
defendant make restitution to the victims of such offense specified
in paragraph (4).
Applicability.
42 USC 422 note.
Applicability.
42 USC
1320b–10 note.
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PUBLIC LAW 108–203—MAR. 2, 2004
‘‘(2) Sections 3612, 3663, and 3664 of title 18, United States
Code, shall apply with respect to the issuance and enforcement
of orders of restitution to victims of such offense under this sub-
section.
‘‘(3) If the court does not order restitution, or orders only
partial restitution, under this subsection, the court shall state on
the record the reasons therefor.
‘‘(4) For purposes of paragraphs (1) and (2), the victims of
an offense under subsection (a) are the following:
‘‘(A) Any individual who suffers a financial loss as a result
of the defendant’s violation of subsection (a).
‘‘(B) The Commissioner of Social Security, to the extent
that the defendant’s violation of subsection (a) results in—
‘‘(i) the Commissioner of Social Security making a ben-
efit payment that should not have been made; or
‘‘(ii) an individual suffering a financial loss due to
the defendant’s violation of subsection (a) in his or her
capacity as the individual’s representative payee appointed
pursuant to section 205(j).
‘‘(5)(A) Except as provided in subparagraph (B), funds paid
to the Commissioner of Social Security as restitution pursuant
to a court order shall be deposited in the Federal Old-Age and
Survivors Insurance Trust Fund, or the Federal Disability Insur-
ance Trust Fund, as appropriate.
‘‘(B) In the case of funds paid to the Commissioner of Social
Security pursuant to paragraph (4)(B)(ii), the Commissioner of
Social Security shall certify for payment to the individual described
in such paragraph an amount equal to the lesser of the amount
of the funds so paid or the individual’s outstanding financial loss,
except that such amount may be reduced by the amount of any
overpayments of benefits owed under this title, title VIII, or title
XVI by the individual.’’; and
(3) by amending subsection (c) (as redesignated by para-
graph (1)), by striking the second sentence.
(b) AMENDMENTS
TO TITLE VIII.—Section 811 of the Social
Security Act (42 U.S.C. 1011) is amended—
(1) by striking subsection (b) and inserting the following:
‘‘(b) COURT ORDER FOR RESTITUTION.—
‘‘(1) IN GENERAL.—Any Federal court, when sentencing a
defendant convicted of an offense under subsection (a), may
order, in addition to or in lieu of any other penalty authorized
by law, that the defendant make restitution to the Commis-
sioner of Social Security, in any case in which such offense
results in—
‘‘(A) the Commissioner of Social Security making a
benefit payment that should not have been made, or
‘‘(B) an individual suffering a financial loss due to
the defendant’s violation of subsection (a) in his or her
capacity as the individual’s representative payee appointed
pursuant to section 807(i).
‘‘(2) RELATED PROVISIONS.—Sections 3612, 3663, and 3664
of title 18, United States Code, shall apply with respect to
the issuance and enforcement of orders of restitution under
this subsection. In so applying such sections, the Commissioner
of Social Security shall be considered the victim.
‘‘(3) STATED REASONS FOR NOT ORDERING RESTITUTION.—
If the court does not order restitution, or orders only partial
Applicability.
Applicability.
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118 STAT. 515
PUBLIC LAW 108–203—MAR. 2, 2004
restitution, under this subsection, the court shall state on the
record the reasons therefor.
‘‘(4) RECEIPT OF RESTITUTION PAYMENTS.—
‘‘(A) IN GENERAL.—Except as provided in subparagraph
(B), funds paid to the Commissioner of Social Security
as restitution pursuant to a court order shall be deposited
as miscellaneous receipts in the general fund of the
Treasury.
‘‘(B) PAYMENT TO THE INDIVIDUAL.—In the case of funds
paid to the Commissioner of Social Security pursuant to
paragraph (1)(B), the Commissioner of Social Security shall
certify for payment to the individual described in such
paragraph an amount equal to the lesser of the amount
of the funds so paid or the individual’s outstanding finan-
cial loss as described in such paragraph, except that such
amount may be reduced by any overpayment of benefits
owed under this title, title II, or title XVI by the indi-
vidual.’’.
(c) AMENDMENTS TO TITLE XVI.—Section 1632 of the Social
Security Act (42 U.S.C. 1383a) is amended—
(1) by redesignating subsection (b) as subsection (c); and
(2) by inserting after subsection (a) the following:
‘‘(b)(1) Any Federal court, when sentencing a defendant con-
victed of an offense under subsection (a), may order, in addition
to or in lieu of any other penalty authorized by law, that the
defendant make restitution to the Commissioner of Social Security,
in any case in which such offense results in—
‘‘(A) the Commissioner of Social Security making a benefit
payment that should not have been made, or
‘‘(B) an individual suffering a financial loss due to the
defendant’s violation of subsection (a) in his or her capacity
as the individual’s representative payee appointed pursuant
to section 1631(a)(2).
‘‘(2) Sections 3612, 3663, and 3664 of title 18, United States
Code, shall apply with respect to the issuance and enforcement
of orders of restitution under this subsection. In so applying such
sections, the Commissioner of Social Security shall be considered
the victim.
‘‘(3) If the court does not order restitution, or orders only
partial restitution, under this subsection, the court shall state on
the record the reasons therefor.
‘‘(4)(A) Except as provided in subparagraph (B), funds paid
to the Commissioner of Social Security as restitution pursuant
to a court order shall be deposited as miscellaneous receipts in
the general fund of the Treasury.
‘‘(B) In the case of funds paid to the Commissioner of Social
Security pursuant to paragraph (1)(B), the Commissioner of Social
Security shall certify for payment to the individual described in
such paragraph an amount equal to the lesser of the amount
of the funds so paid or the individual’s outstanding financial loss
as described in such paragraph, except that such amount may
be reduced by any overpayment of benefits owed under this title,
title II, or title VIII by the individual.’’; and
(3) by amending subsection (c) (as redesignated by para-
graph (1)) by striking ‘‘(1) If a person’’ and all that follows
through ‘‘(2)’’.
Certification.
Applicability.
Certification.
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118 STAT. 516
PUBLIC LAW 108–203—MAR. 2, 2004
(d) EFFECTIVE DATE.—The amendments made by subsections
(a), (b), and (c) shall apply with respect to violations occurring
on or after the date of enactment of this Act.
SEC. 210. AUTHORITY FOR CROSS-PROGRAM RECOVERY OF BENEFIT
OVERPAYMENTS.
(a) IN GENERAL.—Section 1147 of the Social Security Act (42
U.S.C. 1320b–17) is amended to read as follows:
‘‘CROSS-PROGRAM RECOVERY OF OVERPAYMENTS FROM BENEFITS
‘‘(a) IN GENERAL.—Subject to subsection (b), whenever the
Commissioner of Social Security determines that more than the
correct amount of any payment has been made to a person under
a program described in subsection (e), the Commissioner of Social
Security may recover the amount incorrectly paid by decreasing
any amount which is payable to such person under any other
program specified in that subsection.
‘‘(b) LIMITATION APPLICABLE TO CURRENT BENEFITS.—
‘‘(1) IN
GENERAL.—In carrying out subsection (a), the
Commissioner of Social Security may not decrease the monthly
amount payable to an individual under a program described
in subsection (e) that is paid when regularly due—
‘‘(A) in the case of benefits under title II or VIII,
by more than 10 percent of the amount of the benefit
payable to the person for that month under such title;
and
‘‘(B) in the case of benefits under title XVI, by an
amount greater than the lesser of—
‘‘(i) the amount of the benefit payable to the person
for that month; or
‘‘(ii) an amount equal to 10 percent of the person’s
income for that month (including such monthly benefit
but excluding payments under title II when recovery
is also made from title II payments and excluding
income excluded pursuant to section 1612(b)).
‘‘(2) EXCEPTION.—Paragraph (1) shall not apply if—
‘‘(A) the person or the spouse of the person was involved
in willful misrepresentation or concealment of material
information in connection with the amount incorrectly paid;
or
‘‘(B) the person so requests.
‘‘(c) NO EFFECT ON ELIGIBILITY OR BENEFIT AMOUNT UNDER
TITLE VIII OR XVI.—In any case in which the Commissioner of
Social Security takes action in accordance with subsection (a) to
recover an amount incorrectly paid to any person, neither that
person, nor (with respect to the program described in subsection
(e)(3)) any individual whose eligibility for benefits under such pro-
gram or whose amount of such benefits, is determined by consid-
ering any part of that person’s income, shall, as a result of such
action—
‘‘(1) become eligible for benefits under the program
described in paragraph (2) or (3) of subsection (e); or
‘‘(2) if such person or individual is otherwise so eligible,
become eligible for increased benefits under such program.
‘‘(d) INAPPLICABILITY OF PROHIBITION AGAINST ASSESSMENT AND
LEGAL PROCESS.—Section 207 shall not apply to actions taken under
Applicability.
42 USC 408 note.
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118 STAT. 517
PUBLIC LAW 108–203—MAR. 2, 2004
the provisions of this section to decrease amounts payable under
titles II and XVI.
‘‘(e) PROGRAMS DESCRIBED.—The programs described in this
subsection are the following:
‘‘(1) The old-age, survivors, and disability insurance bene-
fits program under title II.
‘‘(2) The special benefits for certain World War II veterans
program under title VIII.
‘‘(3) The supplemental security income benefits program
under title XVI (including, for purposes of this section, State
supplementary payments paid by the Commissioner pursuant
to an agreement under section 1616(a) of this Act or section
212(b) of Public Law 93–66).’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 204(g) of the Social Security Act (42 U.S.C.
404(g)) is amended to read as follows:
‘‘(g) For provisions relating to the cross-program recovery of
overpayments made under programs administered by the Commis-
sioner of Social Security, see section 1147.’’.
(2) Section 808 of the Social Security Act (42 U.S.C. 1008)
is amended—
(A) in subsection (a)(1)—
(i) by striking subparagraph (B);
(ii) in the matter preceding subparagraph (A), by
striking ‘‘any payment’’ and all that follows through
‘‘under this title’’ and inserting ‘‘any payment under
this title’’; and
(iii) by striking ‘‘; or’’ and inserting a period;
(B) by striking subsection (b) and redesignating sub-
sections (c), (d), and (e) as subsections (b), (c), and (d),
respectively; and
(C) by adding at the end the following:
‘‘(e) CROSS-PROGRAM RECOVERY OF OVERPAYMENTS.—For provi-
sions relating to the cross-program recovery of overpayments made
under programs administered by the Commissioner of Social Secu-
rity, see section 1147.’’.
(3) Section 1147A of the Social Security Act (42 U.S.C.
1320b–18) is repealed.
(4) Section 1631(b) of the Social Security Act (42 U.S.C.
1383(b)) is amended—
(A) in paragraph (1)(B)—
(i) by striking ‘‘excluding any other’’ and inserting
‘‘excluding payments under title II when recovery is
made from title II payments pursuant to section 1147
and excluding’’; and
(ii) by striking ‘‘50 percent of’’; and
(B) by striking paragraph (6) and inserting the fol-
lowing:
‘‘(6) For provisions relating to the cross-program recovery of
overpayments made under programs administered by the Commis-
sioner of Social Security, see section 1147.’’.
(c) EFFECTIVE DATE.—The amendments and repeal made by
this section shall take effect on the date of enactment of this
Act, and shall be effective with respect to overpayments under
titles II, VIII, and XVI of the Social Security Act that are out-
standing on or after such date.
42 USC 404 note.
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118 STAT. 518
PUBLIC LAW 108–203—MAR. 2, 2004
SEC. 211. PROHIBITION ON PAYMENT OF TITLE II BENEFITS TO PER-
SONS NOT AUTHORIZED TO WORK IN THE UNITED
STATES.
(a) FULLY INSURED AND CURRENTLY INSURED INDIVIDUALS.—
Section 214 (42 U.S.C. 414) is amended—
(1) in subsection (a), by inserting before the period at
the end the following: ‘‘, and who satisfies the criterion specified
in subsection (c)’’;
(2) in subsection (b), by inserting before the period at
the end the following: ‘‘, and who satisfies the criterion specified
in subsection (c)’’; and
(3) by adding at the end the following:
‘‘(c) For purposes of subsections (a) and (b), the criterion speci-
fied in this subsection is that the individual, if not a United States
citizen or national—
‘‘(1) has been assigned a social security account number
that was, at the time of assignment, or at any later time,
consistent with the requirements of subclause (I) or (III) of
section 205(c)(2)(B)(i); or
‘‘(2) at the time any such quarters of coverage are earned—
‘‘(A) is described in subparagraph (B) or (D) of section
101(a)(15) of the Immigration and Nationality Act,
‘‘(B) is lawfully admitted temporarily to the United
States for business (in the case of an individual described
in such subparagraph (B)) or the performance as a crewman
(in the case of an individual described in such subpara-
graph (D)), and
‘‘(C) the business engaged in or service as a crewman
performed is within the scope of the terms of such individ-
ual’s admission to the United States.’’.
(b) DISABILITY BENEFITS.—Section 223(a)(1) of the Social Secu-
rity Act (42 U.S.C. 423(a)(1)) is amended—
(1) by redesignating subparagraphs (C) and (D) as subpara-
graphs (D) and (E), respectively; and
(2) by inserting after subparagraph (B), the following:
‘‘(C) if not a United States citizen or national—
‘‘(i) has been assigned a social security account number
that was, at the time of assignment, 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 Immigration and Nationality
Act,
‘‘(II) is lawfully admitted temporarily to the United
States for business (in the case of an individual
described in such subparagraph (B)) or the performance
as a crewman (in the case of an individual described
in such subparagraph (D)), and
‘‘(III) the business engaged in or service as a crew-
man performed is within the scope of the terms of
such individual’s admission to the United States.’’.
(c) EFFECTIVE DATE.—The amendments made by this section
apply to benefit applications based on social security account num-
bers issued on or after January 1, 2004.
Applicability.
42 USC 414 note.
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118 STAT. 519
PUBLIC LAW 108–203—MAR. 2, 2004
TITLE 
III—ATTORNEY 
REPRESENTA-
TIVE 
FEE 
PAYMENT 
SYSTEM 
IM-
PROVEMENTS
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
(2) by adding at the end the following: ‘‘In the case of
any calendar year beginning after the amendments made by
section 301 of the Social 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 preceding
year, but for the rounding of such amount pursuant to the
following sentence. Any amount so adjusted that is not a mul-
tiple 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 PAYMENT
SYSTEM TO TITLE XVI CLAIMS.
(a) IN GENERAL.—Section 1631(d)(2) of the Social Security Act
(42 U.S.C. 1383(d)(2)) is amended—
(1) in subparagraph (A), in the matter preceding clause
(i)—
(A) by striking ‘‘section 206(a)’’ and inserting ‘‘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 subparagraphs (A)(ii)(I) and (D)(i) of sub-
section (a)(2)’’; and
(B) by striking ‘‘and’’ at the end;
(3) by striking subparagraph (A)(ii) and inserting the fol-
lowing:
‘‘(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 ‘sub-
section (g) or (h) of section 223’;
Applicability.
42 USC 406 note.
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‘‘(iii) by substituting, in subsection (a)(2)(C)(i), the phrase
‘under title II’ for the phrase ‘under title XVI’;
‘‘(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 certified 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 benefits under this title or
title II made pursuant to section 1127(a)’ for the phrase ‘deter-
mined before any applicable reduction under section 1127(a))’.’’;
and
(4) by redesignating subparagraph (B) as subparagraph
(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 exceed 25
percent of such past-due benefits (as determined before any
applicable reduction under section 1631(g) and reduced by the
amount of any reduction in benefits under this title or title
II pursuant to section 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 impose 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 beginning after the amendments made by section
302 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.
‘‘(II) The percentage specified in this subclause is such percent-
age rate as the Commissioner determines is necessary in order
to achieve full recovery of the costs of determining 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 benefits.
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‘‘(iv) An attorney subject to an assessment under clause (i)
may not, directly or indirectly, request or otherwise obtain
reimbursement for such assessment from the claimant whose claim
gave rise to the assessment.
‘‘(v) Assessments on attorneys collected under this subpara-
graph shall be deposited as miscellaneous receipts in the general
fund of the Treasury.
‘‘(vi) The assessments authorized under this subparagraph 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 authorized 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 representation 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 Commissioner 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 requirements for
operation of the demonstration project under section 303 of
this Act.
(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 PROVIDING FOR
EXTENSION OF FEE WITHHOLDING PROCEDURES TO
NON-ATTORNEY REPRESENTATIVES.
(a) IN GENERAL.—The Commissioner of Social Security (here-
after in this section referred to as the ‘‘Commissioner’’) shall develop
and carry out a nationwide demonstration 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 extending
to such representatives the fee withholding procedures and assess-
ment 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 administra-
tion.
42 USC 406 note.
Applicability.
Notice.
42 USC 1383
note.
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(b) STANDARDS FOR INCLUSION IN DEMONSTRATION PROJECT.—
Fee-withholding procedures may be extended under the demonstra-
tion project carried out pursuant to subsection (a) to any non-
attorney representative only if such representative meets at least
the following prerequisites:
(1) The representative has been awarded a bachelor’s
degree from an accredited institution of higher education, or
has been determined by the Commissioner to have equivalent
qualifications derived from training and work experience.
(2) The representative has passed an examination, 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 protect claimants in the
event of malpractice by the representative.
(4) The representative has undergone a criminal back-
ground check to ensure the representative’s fitness to practice
before the Commissioner.
(5) The representative demonstrates ongoing completion
of qualified courses of continuing education, including education
regarding ethics and professional conduct, which are designed
to enhance professional knowledge in matters related to entitle-
ment to, or eligibility for, benefits based on disability under
titles II and XVI of such Act. Such continuing education, and
the instructors providing such education, shall meet such stand-
ards as the Commissioner may prescribe.
(c) ASSESSMENT OF FEES.—
(1) IN GENERAL.—The Commissioner may assess represent-
atives 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 gen-
eral fund of the Treasury, based on such allocations as the
Commissioner of Social Security determines appropriate.
(3) AUTHORIZATION OF APPROPRIATIONS.—The fees author-
ized under this subparagraph 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 authorized to remain available until expended for admin-
istering the prerequisites described in subsection (b).
(d) NOTICE TO CONGRESS AND APPLICABILITY OF FEE WITH-
HOLDING 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 oper-
ation of the demonstration project and shall submit to each House
of Congress a written notice of the completion of such actions.
The applicability 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
Deadline.
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118 STAT. 523
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for representation is entered into by such non-attorney representa-
tives during the period beginning with the date of the submission
of such notice by the Commissioner to Congress and ending with
the termination date of the demonstration project.
(e) REPORTS BY THE COMMISSIONER; TERMINATION.—
(1) INTERIM REPORTS.—On or before the date which is 1
year after the date of enactment of this Act, and annually
thereafter, the Commissioner shall transmit to the Committee
on Ways and Means of the House of Representatives and to
the Committee on Finance of the Senate an annual interim
report on the progress of the demonstration project carried
out under this section, together with any related data and
materials that the Commissioner may consider appropriate.
(2) TERMINATION
DATE
AND
FINAL
REPORT.—The termi-
nation date of the demonstration project under this section
is the date which is 5 years after the date of the submission
of the notice by the Commissioner to each House of Congress
pursuant to subsection (d). The authority under the preceding
provisions of this section shall not apply in the case of claims
for benefits with respect to which the agreement for representa-
tion is entered into after the termination date. Not later than
90 days after the termination date, the Commissioner shall
submit to the Committee on Ways and Means of the House
of Representatives and to the Committee on Finance of the
Senate a final report with respect to the demonstration project.
SEC. 304. GAO STUDY REGARDING THE FEE PAYMENT PROCESS FOR
CLAIMANT REPRESENTATIVES.
(a) STUDY.—
(1) IN GENERAL.—The Comptroller General of the United
States shall study and evaluate the appointment 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 withholding.
(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 General shall, for each
of group of claimant representatives described in paragraph
(1)—
(A) conduct a survey of the relevant characteristics
of such claimant representatives including—
(i) qualifications and experience;
(ii) the type of employment of such claimant rep-
resentatives, such as with an advocacy group, State
or local government, or insurance or other company;
(iii) geographical distribution between urban and
rural areas;
42 USC 406 note.
Deadlines.
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118 STAT. 524
PUBLIC LAW 108–203—MAR. 2, 2004
(iv) the nature of claimants’ cases, such as whether
the cases are for disability insurance benefits only,
supplemental security income benefits only, or concur-
rent benefits;
(v) the relationship of such claimant representa-
tives to claimants, such as whether 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 pay-
ment of such compensation;
(B) assess the quality and effectiveness of the services
provided by such claimant representatives, including a
comparison of claimant satisfaction or complaints and ben-
efit outcomes, adjusted for differences in claimant rep-
resentatives’ caseload, claimants’ diagnostic group, level
of decision, and other relevant factors;
(C) assess the interactions between fee withholding
under sections 206 and 1631(d)(2) of such Act (including
under the amendments made by section 302 of this Act
and under the demonstration project conducted under sec-
tion 303 of this Act), the windfall offset under section
1127 of such Act, and interim assistance reimbursements
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
program administration and claimant outcomes, and assess
whether the rules and procedures employed by the Commis-
sioner of Social Security to evaluate the qualifications and
performance of claimant representatives should be revised
prior to making such procedures permanent; and
(E) make such recommendations for administrative and
legislative changes as the Comptroller General of the
United States considers necessary or appropriate.
(3) CONSULTATION REQUIRED.—The Comptroller General of
the United States shall consult with beneficiaries under title
II of such Act, beneficiaries under title XVI of such Act, claim-
ant representatives of beneficiaries under such titles, and other
interested parties, in conducting the study and evaluation
required 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 implementation of the requirements for oper-
ation of the demonstration project under section 303 of this Act,
the Comptroller General 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).
Deadline.
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118 STAT. 525
PUBLIC LAW 108–203—MAR. 2, 2004
TITLE IV—MISCELLANEOUS AND
TECHNICAL AMENDMENTS
Subtitle A—Amendments Relating to the
Ticket to Work and Work Incentives Im-
provement 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 ‘‘con-
ducted under subsection (a)’’ and inserting ‘‘initiated under
subsection (a) on or before December 17, 2005’’; and
(2) in subsection (d)(2), by striking the first sentence 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 CONNEC-
TION WITH DEMONSTRATION PROJECTS PROVIDING FOR
REDUCTIONS 
IN 
DISABILITY 
INSURANCE 
BENEFITS
BASED ON EARNINGS.
Section 302(c) of the Ticket to Work and Work Incentives
Improvement Act of 1999 (42 U.S.C. 434 note) is amended by
striking ‘‘(42 U.S.C. 401 et seq.),’’ and inserting ‘‘(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 PROVIDING FOR
REDUCTIONS 
IN 
DISABILITY 
INSURANCE 
BENEFITS
BASED ON EARNINGS.
Section 302(f) of the Ticket to Work and Work Incentives
Improvement Act of 1999 (42 U.S.C. 434 note) is amended to read
as follows:
‘‘(f) EXPENDITURES.—Administrative expenses for demonstra-
tion 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 deter-
mined appropriate by the Commissioner of Social Security, and
from the Federal Hospital Insurance Trust Fund and the Federal
Supplementary Medical Insurance Trust Fund, as determined
appropriate by the Secretary of Health and Human Services, from
funds available for benefits under such title II or XVIII.’’.
SEC. 404. AVAILABILITY OF FEDERAL AND STATE WORK INCENTIVE
SERVICES TO ADDITIONAL INDIVIDUALS.
(a) FEDERAL WORK INCENTIVES OUTREACH PROGRAM.—
(1) IN GENERAL.—Section 1149(c)(2) of the Social Security
Act (42 U.S.C. 1320b–20(c)(2)) is amended to read as follows:
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118 STAT. 526
PUBLIC LAW 108–203—MAR. 2, 2004
‘‘(2) DISABLED
BENEFICIARY.—The term ‘disabled bene-
ficiary’ means an individual—
‘‘(A) who is a disabled beneficiary as defined in section
1148(k)(2) of this Act;
‘‘(B) who is receiving a cash payment described in
section 1616(a) of this Act or a supplementary payment
described in section 212(a)(3) of Public Law 93–66 (without
regard to whether such payment is paid by the Commis-
sioner pursuant to an agreement under section 1616(a)
of this Act or under section 212(b) of Public Law 93–
66);
‘‘(C) who, pursuant to section 1619(b) of this Act, is
considered to be receiving benefits under title XVI of this
Act; or
‘‘(D) who is entitled to benefits under part A of title
XVIII of this Act by reason of the penultimate sentence
of section 226(b) of this Act.’’.
(2) EFFECTIVE DATE.—The amendment made by this sub-
section shall apply with respect to grants, cooperative agree-
ments, or contracts entered into on or after the date of the
enactment of this Act.
(b) STATE GRANTS FOR WORK INCENTIVES ASSISTANCE.—
(1) 
DEFINITION
OF
DISABLED
BENEFICIARY.—Section
1150(g)(2) of such Act (42 U.S.C. 1320b–21(g)(2)) is amended
to read as follows:
‘‘(2) DISABLED
BENEFICIARY.—The term ‘disabled bene-
ficiary’ means an individual—
‘‘(A) who is a disabled beneficiary as defined in section
1148(k)(2) of this Act;
‘‘(B) who is receiving a cash payment described in
section 1616(a) of this Act or a supplementary payment
described in section 212(a)(3) of Public Law 93–66 (without
regard to whether such payment is paid by the Commis-
sioner pursuant to an agreement under section 1616(a)
of this Act or under section 212(b) of Public Law 93–
66);
‘‘(C) who, pursuant to section 1619(b) of this Act, is
considered to be receiving benefits under title XVI of this
Act; or
‘‘(D) who is entitled to benefits under part A of title
XVIII of this Act by reason of the penultimate sentence
of section 226(b) of this Act.’’.
(2) ADVOCACY OR OTHER SERVICES NEEDED TO MAINTAIN
GAINFUL
EMPLOYMENT.—Section 1150(b)(2) of such Act (42
U.S.C. 1320b–21(b)(2)) is amended by striking ‘‘secure or
regain’’ and inserting ‘‘secure, maintain, or regain’’.
(3) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply with respect to payments provided after
the date of the enactment of this Act.
SEC. 405. TECHNICAL AMENDMENT CLARIFYING TREATMENT FOR CER-
TAIN PURPOSES OF INDIVIDUAL WORK PLANS UNDER
THE TICKET TO WORK AND SELF-SUFFICIENCY PRO-
GRAM.
(a) IN GENERAL.—Section 1148(g)(1) of the Social Security Act
(42 U.S.C. 1320b–19(g)(1)) is amended by adding at the end, after
and below subparagraph (E), the following:
Applicability.
42 USC
1320b–21 note.
Applicability.
42 USC
1320b–20 note.
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PUBLIC LAW 108–203—MAR. 2, 2004
‘‘An individual work plan established pursuant to this sub-
section shall be treated, for purposes of section 51(d)(6)(B)(i)
of the Internal Revenue Code of 1986, as an individualized
written plan for employment under a State plan for vocational
rehabilitation services approved under the Rehabilitation Act
of 1973.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall take effect as if included in section 505 of the Ticket to
Work and Work Incentives Improvement Act of 1999 (Public Law
106–170; 113 Stat. 1921).
SEC. 406. GAO STUDY REGARDING THE TICKET TO WORK AND SELF-
SUFFICIENCY PROGRAM.
(a) GAO REPORT.—Not later than 12 months after the date
of enactment of this Act, the Comptroller General of the United
States shall submit a report to Congress regarding the Ticket
to Work and Self-Sufficiency Program established under section
1148 of the Social Security Act (42 U.S.C. 1320b–19) that—
(1) examines the annual and interim reports issued by
States, the Ticket to Work and Work Incentives Advisory Panel
established under section 101(f) of the Ticket to Work and
Work Incentives Improvement Act of 1999 (42 U.S.C. 1320b–
19 note), and the Commissioner of Social Security regarding
such program;
(2) assesses the effectiveness of the activities carried out
under such program; and
(3) recommends such legislative or administrative changes
as the Comptroller General determines are appropriate to
improve the effectiveness of such program.
SEC. 407. REAUTHORIZATION OF APPROPRIATIONS FOR CERTAIN
WORK INCENTIVES PROGRAMS.
(a) BENEFITS PLANNING, ASSISTANCE, AND OUTREACH.—Section
1149(d) of the Social Security Act (42 U.S.C. 1320b–20(d)) is
amended by striking ‘‘2004’’ and inserting ‘‘2009’’.
(b) PROTECTION AND ADVOCACY.—Section 1150(h) of the Social
Security Act (42 U.S.C. 1320b–21(h)) is amended by striking ‘‘2004’’
and inserting ‘‘2009’’.
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 Security Act
(42 U.S.C. 405(g)) is amended in the sixth sentence by striking
‘‘and a transcript’’ and inserting ‘‘and, in any case in which the
Commissioner has not made a decision fully favorable to the indi-
vidual, 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 Security Act
(42 U.S.C. 402(n)) is amended—
Applicability.
42 USC 405 note.
Deadline.
42 USC
1320b–19 note.
42 USC
1320b–19 note.
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118 STAT. 528
PUBLIC LAW 108–203—MAR. 2, 2004
(1) in paragraph (1), by striking ‘‘section 241(a) (other
than under paragraph (1)(C) or (1)(E) thereof) of the Immigra-
tion and Nationality Act’’ and inserting ‘‘section 237(a) of the
Immigration and Nationality Act (other than under paragraph
(1)(C) of such section) or under section 212(a)(6)(A) of such
Act’’;
(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 inserting ‘‘section 237(a) of the
Immigration and Nationality 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 Nationality Act (relating to
persecution of others on account of race, religion, national
origin, or political opinion, under the direction of or in associa-
tion with the Nazi government of Germany or its allies) shall
be considered to have been deported under such paragraph
(19)’’ and inserting ‘‘paragraph (4)(D) of section 241(a) of the
Immigration and Nationality Act (relating to participating in
Nazi persecutions or genocide) 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 inserting ‘‘237(a)’’.
(b) TECHNICAL CORRECTIONS.—
(1) TERMINOLOGY REGARDING REMOVAL FROM THE UNITED
STATES.—Section 202(n) of the Social Security Act (42
U.S.C. 402(n)) (as amended by subsection (a)) is amended
further—
(A) by striking ‘‘deportation’’ each place it appears
and inserting ‘‘removal’’;
(B) by striking ‘‘deported’’ each place it appears and
inserting ‘‘removed’’; and
(C) in the heading, by striking ‘‘Deportation’’ and
inserting ‘‘Removal’’.
(2) REFERENCES TO THE SECRETARY OF HOMELAND SECU-
RITY.—Section 202(n) of the Social Security Act (42 U.S.C.
402(n)) (as amended by subsection (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 individuals 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 respect to notifica-
tions of removals received by the Commissioner of Social
Security after the date of enactment of this Act; and
(C) subsection (a)(3) shall be effective as if enacted
on March 1, 1991.
(2) SUBSEQUENT
CORRECTION
OF
CROSS-REFERENCE
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 HOMELAND SECU-
RITY.—The amendment made by subsection (b)(2) shall be effec-
tive as if enacted on March 1, 2003.
Applicability.
42 USC 402 note.
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SEC. 413. REINSTATEMENT OF CERTAIN REPORTING REQUIREMENTS.
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 provi-
sions 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 Security Act (42
U.S.C. 421(c)(3)(C)).
(B) Section 221(i)(3) of the Social Security Act (42
U.S.C. 421(i)(3)).
SEC. 414. CLARIFICATION OF DEFINITIONS REGARDING CERTAIN SUR-
VIVOR 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), respectively;
(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 connection with
the surviving wife of an individual shall be treated as satisfied
if—
‘‘(A) the individual had been married prior to the individ-
ual’s marriage to the surviving wife,
‘‘(B) the prior wife was institutionalized during the individ-
ual’s marriage to the prior wife due to mental incompetence
or similar incapacity,
‘‘(C) during the period of the prior wife’s institutionaliza-
tion, 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 institutionalization, under the laws of the
State in which the individual was domiciled at the time (as
determined based on evidence satisfactory to the Commissioner
of Social Security),
‘‘(D) the prior wife continued to remain institutionalized
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), respectively;
(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
31 USC 1113
note.
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(5) by adding at the end the following:
‘‘(2) The requirements of paragraph (1)(E) in connection with
the surviving husband of an individual shall be treated as satisfied
if—
‘‘(A) the individual had been married prior to the individ-
ual’s marriage to the surviving husband,
‘‘(B) the prior husband was institutionalized during the
individual’s marriage to the prior husband due to mental incom-
petence or similar incapacity,
‘‘(C) during the period of the prior husband’s institutional-
ization, the individual would have divorced the prior husband
and married the surviving husband, but the individual did
not do so because such divorce would have been unlawful,
by reason of the prior husband’s institutionalization, under
the laws of the State in which the individual was domiciled
at the time (as determined based on evidence satisfactory to
the Commissioner of Social Security),
‘‘(D) the prior husband continued to remain institutional-
ized up to the time of his death, and
‘‘(E) the individual married the surviving husband within
60 days after the prior husband’s death.’’.
(c) CONFORMING AMENDMENT.—Section 216(k) of such Act (42
U.S.C. 416(k)) is amended by striking ‘‘clause (5) of subsection
(c) or clause (5) of subsection (g)’’ and 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 benefits 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
PARTNER.
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 inserting ‘‘exclusively to the laws
applicable to’’.
SEC. 416. COVERAGE UNDER DIVIDED RETIREMENT SYSTEM FOR
PUBLIC EMPLOYEES IN KENTUCKY AND LOUISIANA.
(a) IN GENERAL.—Section 218(d)(6)(C) of the Social Security
Act (42 U.S.C. 418(d)(6)(C)) is amended by inserting ‘‘Kentucky,
Louisiana,’’ after ‘‘Illinois,’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
takes effect on January 1, 2003.
SEC. 417. COMPENSATION FOR THE SOCIAL SECURITY ADVISORY
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 (including
traveltime) during which the member is attending meetings or
conferences of the Board or otherwise engaged in the business
of the Board, be compensated at the daily rate of basic pay for
42 USC 418 note.
26 USC 1401,
3101, and 3111.
42 USC 416 note.
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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 travel 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 intermit-
tently.’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall be effective as of January 1, 2003.
SEC. 418. SIXTY-MONTH PERIOD OF EMPLOYMENT REQUIREMENT FOR
APPLICATION 
OF 
GOVERNMENT 
PENSION 
OFFSET
EXEMPTION.
(a) IN GENERAL.—Section 202(k) of the Social Security Act
(42 U.S.C. 402(k)) is amended by adding at the end the following:
‘‘(5)(A) The amount of a monthly insurance benefit of any
individual for each month under subsection (b), (c), (e), (f), or
(g) (as determined after application of the provisions of subsection
(q) and the preceding provisions of this subsection) shall be reduced
(but not below zero) by an amount equal to two-thirds of the
amount of any monthly periodic benefit payable to such individual
for such month which is based upon such individual’s earnings
while in the service of the Federal Government or any State (or
political subdivision thereof, as defined in section 218(b)(2)) if,
during any portion of the last 60 months of such service ending
with the last day such individual was employed by such entity—
‘‘(i) such service did not constitute ‘employment’ as defined
in section 210, or
‘‘(ii) such service was being performed while in the service
of the Federal Government, and constituted ‘employment’ as
so defined solely by reason of—
‘‘(I) clause (ii) or (iii) of subparagraph (G) of section
210(a)(5), where the lump-sum payment described in such
clause (ii) or the cessation of coverage described in such
clause (iii) (whichever is applicable) was received or
occurred on or after January 1, 1988, or
‘‘(II) an election to become subject to the Federal
Employees’ Retirement System provided in chapter 84 of
title 5, United States Code, or the Foreign Service Pension
System provided in subchapter II of chapter 8 of title
I of the Foreign Service Act of 1980 made pursuant to
law after December 31, 1987,
unless subparagraph (B) applies.
The amount of the reduction in any benefit under this subpara-
graph, if not a multiple of $0.10, shall be rounded to the next
higher multiple of $0.10.
‘‘(B)(i) Subparagraph (A)(i) shall not apply with respect to
monthly periodic benefits based wholly on service as a member
of a uniformed service (as defined in section 210(m)).
‘‘(ii) Subparagraph (A)(ii) shall not apply with respect to
monthly periodic benefits based in whole or in part on service
which constituted ‘employment’ as defined in section 210 if such
service was performed for at least 60 months in the aggregate
during the period beginning January 1, 1988, and ending with
the close of the first calendar month as of the end of which such
individual is eligible for benefits under this subsection and has
made a valid application for such benefits.
42 USC 903 note.
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‘‘(C) For purposes of this paragraph, any periodic benefit which
otherwise meets the requirements of subparagraph (A), but which
is paid on other than a monthly basis, shall be allocated on a
basis equivalent to a monthly benefit (as determined by the
Commissioner of Social Security) and such equivalent monthly ben-
efit shall constitute a monthly periodic benefit for purposes of
subparagraph (A). For purposes of this subparagraph, the term
‘periodic benefit’ includes a benefit payable in a lump sum if it
is a commutation of, or a substitute for, periodic payments.’’.
(b) CONFORMING AMENDMENTS.—
(1) WIFE’S
INSURANCE
BENEFITS.—Section 202(b) of the
Social Security Act (42 U.S.C. 402(b)) is amended—
(A) in paragraph (2), by striking ‘‘subsection (q) and
paragraph (4) of this subsection’’ and inserting ‘‘subsections
(k)(5) and (q)’’; and
(B) by striking paragraph (4) and redesignating para-
graph (5) as paragraph (4).
(2) HUSBAND’S INSURANCE BENEFITS.—Section 202(c) of the
Social Security Act (42 U.S.C. 402(c)) is amended—
(A) by striking paragraph (2) and redesignating para-
graphs (3) through (5) as paragraphs (2) through (4),
respectively; and
(B) in paragraph (2) as so redesignated, by striking
‘‘subsection (q) and paragraph (2) of this subsection’’ and
inserting ‘‘subsections (k)(5) and (q)’’.
(3) WIDOW’S INSURANCE BENEFITS.—Section 202(e) of the
Social Security Act (42 U.S.C. 402(e)) is amended—
(A) in paragraph (2)(A), by striking ‘‘subsection (q),
paragraph (7) of this subsection,’’ and inserting ‘‘subsection
(k)(5), subsection (q),’’; and
(B) by striking paragraph (7) and redesignating para-
graphs (8) and (9) as paragraphs (7) and (8), respectively.
(4) WIDOWER’S INSURANCE BENEFITS.—
(A) IN GENERAL.—Section 202(f) of the Social Security
Act (42 U.S.C. 402(f)) is amended—
(i) by striking paragraph (2) and redesignating
paragraphs (3) through (9) as paragraphs (2) through
(8), respectively; and
(ii) in paragraph (2) as so redesignated, by striking
‘‘subsection (q), paragraph (2) of this subsection,’’ and
inserting ‘‘subsection (k)(5), subsection (q),’’.
(B) CONFORMING AMENDMENTS.—
(i) Section 202(f)(1)(B) of the Social Security Act
(42 U.S.C. 402(f)(1)(B)) is amended by striking ‘‘para-
graph (5)’’ and inserting ‘‘paragraph (4)’’.
(ii) Section 202(f)(1)(F) of the Social Security Act
(42 U.S.C. 402(f)(1)(F)) is amended by striking ‘‘para-
graph (6)’’ and ‘‘paragraph (5)’’ (in clauses (i) and (ii))
and inserting ‘‘paragraph (5)’’ and ‘‘paragraph (4)’’,
respectively.
(iii) Section 202(f)(5)(A)(ii) of the Social Security
Act (as redesignated by subparagraph (A)(i)) is
amended by striking ‘‘paragraph (5)’’ and inserting
‘‘paragraph (4)’’.
(iv) Section 202(k)(2)(B) of the Social Security Act
(42 U.S.C. 402(k)(2)(B)) is amended by striking ‘‘or
(f)(4)’’ each place it appears and inserting ‘‘or (f)(3)’’.
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(v) Section 202(k)(3)(A) of the Social Security Act
(42 U.S.C. 402(k)(3)(A)) is amended by striking ‘‘or
(f)(3)’’ and inserting ‘‘or (f)(2)’’.
(vi) Section 202(k)(3)(B) of the Social Security Act
(42 U.S.C. 402(k)(3)(B)) is amended by striking ‘‘or
(f)(4)’’ and inserting ‘‘or (f)(3)’’.
(vii) Section 226(e)(1)(A)(i) of the Social Security
Act (42 U.S.C. 426(e)(1)(A)(i)) is amended by striking
‘‘and 202(f)(5)’’ and inserting ‘‘and 202(f)(4)’’.
(5) MOTHER’S AND FATHER’S INSURANCE BENEFITS.—Section
202(g) of the Social Security Act (42 U.S.C. 402(g)) is amended—
(A) in paragraph (2), by striking ‘‘Except as provided
in paragraph (4) of this subsection, such’’ and inserting
‘‘Such’’; and
(B) by striking paragraph (4).
(c) EFFECTIVE DATE AND TRANSITIONAL RULE.—
(1) IN GENERAL.—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 enactment
of this Act, except that such amendments shall not apply in
connection with monthly periodic benefits of any individual
based on earnings while in service described in section
202(k)(5)(A) of the Social Security Act (in the matter preceding
clause (i) thereof) if the last day of such service occurs before
July 1, 2004.
(2) TRANSITIONAL
RULE.—In the case of any individual
whose last day of service described in subparagraph (A) of
section 202(k)(5) of the Social Security Act (as added by sub-
section (a) of this section) occurs within 5 years after the
date of enactment of this Act—
(A) the 60-month period described in such subpara-
graph (A) shall be reduced (but not to less than 1 month)
by the number of months of such service (in the aggregate
and without regard to whether such months of service
were continuous) which—
(i) were performed by the individual under the
same retirement system on or before the date of enact-
ment of this Act, and
(ii) constituted ‘‘employment’’ as defined in section
210 of the Social Security Act; and
(B) months of service necessary to fulfill the 60-month
period as reduced by subparagraph (A) of this paragraph
must be performed after the date of enactment of this
Act.
SEC. 419. DISCLOSURE TO WORKERS OF EFFECT OF WINDFALL ELIMI-
NATION PROVISION AND GOVERNMENT PENSION OFFSET
PROVISION.
(a) INCLUSION
OF
NONCOVERED
EMPLOYEES
AS
ELIGIBLE
INDIVIDUALS
ENTITLED
TO
SOCIAL
SECURITY
ACCOUNT
STATE-
MENTS.—Section 1143(a)(3) of the Social Security Act (42 U.S.C.
1320b–13(a)(3)) is amended—
(1) by striking ‘‘who’’ after ‘‘an individual’’ and inserting
‘‘who’’ before ‘‘has’’ in each of subparagraphs (A) and (B);
(2) by inserting ‘‘(i) who’’ after ‘‘(C)’’; and
Applicability.
42 USC 402 note.
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(3) by inserting before the period the following: ‘‘, or (ii)
with respect to whom the Commissioner has information that
the pattern of wages or self-employment income indicate a
likelihood of noncovered employment’’.
(b) EXPLANATION IN SOCIAL SECURITY ACCOUNT STATEMENTS
OF POSSIBLE EFFECTS OF PERIODIC BENEFITS UNDER STATE AND
LOCAL RETIREMENT SYSTEMS ON SOCIAL SECURITY BENEFITS.—Sec-
tion 1143(a)(2) of the Social Security Act (42 U.S.C. 1320b–13(a)(2))
is amended—
(1) in subparagraph (C), by striking ‘‘and’’ at the end;
(2) in subparagraph (D), by striking the period and
inserting ‘‘; and’’; and
(3) by adding at the end the following:
‘‘(E) in the case of an eligible individual described in para-
graph (3)(C)(ii), an explanation, in language calculated to be
understood by the average eligible individual, of the operation
of the provisions under sections 202(k)(5) and 215(a)(7) and
an explanation of the maximum potential effects of such provi-
sions on the eligible individual’s monthly retirement, survivor,
and auxiliary benefits.’’.
(c) TRUTH
IN RETIREMENT DISCLOSURE
TO GOVERNMENTAL
EMPLOYEES OF EFFECT OF NONCOVERED EMPLOYMENT ON BENEFITS
UNDER TITLE II.—Section 1143 of the Social Security Act (42 U.S.C.
1320b–13) is amended further by adding at the end the following:
‘‘Disclosure to Governmental Employees of Effect of Noncovered
Employment
‘‘(d)(1) In the case of any individual commencing employment
on or after January 1, 2005, in any agency or instrumentality
of any State (or political subdivision thereof, as defined in section
218(b)(2)) in a position in which service performed by the individual
does not constitute ‘employment’ as defined in section 210, the
head of the agency or instrumentality shall ensure that, prior
to the date of the commencement of the individual’s employment
in the position, the individual is provided a written notice setting
forth an explanation, in language calculated to be understood by
the average individual, of the maximum effect on computations
of primary insurance amounts (under section 215(a)(7)) and the
effect on benefit amounts (under section 202(k)(5)) of monthly peri-
odic payments or benefits payable based on earnings derived in
such service. Such notice shall be in a form which shall be pre-
scribed by the Commissioner of Social Security.
‘‘(2) The written notice provided to an individual pursuant
to paragraph (1) shall include a form which, upon completion and
signature by the individual, would constitute certification by the
individual of receipt of the notice. The agency or instrumentality
providing the notice to the individual shall require that the form
be completed and signed by the individual and submitted to the
agency or instrumentality and to the pension, annuity, retirement,
or similar fund or system established by the governmental entity
involved responsible for paying the monthly periodic payments or
benefits, before commencement of service with the agency or
instrumentality.’’.
(d) EFFECTIVE DATES.—The amendments made by subsections
(a) and (b) of this section shall apply with respect to social security
account statements issued on or after January 1, 2007.
Applicability.
42 USC
1320b–13 note.
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PUBLIC LAW 108–203—MAR. 2, 2004
SEC. 420. POST-1956 MILITARY WAGE CREDITS.
(a) PAYMENT TO THE SOCIAL SECURITY TRUST FUNDS IN SATIS-
FACTION OF OUTSTANDING OBLIGATIONS.—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 Insurance Trust
Fund; and
‘‘(3) $173,306,134 to the Federal Hospital Insurance 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.’’.
(b) CONFORMING AMENDMENTS.—
(1) REPEAL OF AUTHORITY FOR ANNUAL APPROPRIATIONS AND
RELATED ADJUSTMENTS TO COMPENSATE 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.—Section 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’’.
SEC. 420A. ELIMINATION OF DISINCENTIVE TO RETURN-TO-WORK FOR
CHILDHOOD DISABILITY BENEFICIARIES.
(a) IN GENERAL.—Section 202(d)(6)(B) of the Social Security
Act (42 U.S.C. 402(d)(6)(B)) is amended—
(1) by inserting ‘‘(i)’’ after ‘‘began’’; and
(2) by adding after ‘‘such disability,’’ the following: ‘‘or
(ii) after the close of the 84th month following the month
in which his most recent entitlement to child’s insurance bene-
fits terminated because he ceased to be under such disability
due to performance of substantial gainful activity,’’.
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) shall be effective with respect to benefits payable for months
beginning with the 7th month that begins after the date of enact-
ment of this Act.
Subtitle C—Technical Amendments
SEC. 421. TECHNICAL CORRECTION RELATING TO RESPONSIBLE
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 appears and
inserting ‘‘Commissioner of Social Security’’; and
(2) by striking ‘‘Secretary’’ each subsequent place it appears
and inserting ‘‘Commissioner’’.
42 USC 402 note.
Deadline.
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SEC. 422. TECHNICAL CORRECTION RELATING TO RETIREMENT BENE-
FITS OF MINISTERS.
(a) IN GENERAL.—Section 211(a)(7) of the Social Security 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 parsonage 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
received 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 
DOMESTIC
EMPLOYMENT.
(a) 
AMENDMENT
TO
INTERNAL
REVENUE
CODE.—Section
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’’.
(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 REFERENCES.
(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 AGRICUL-
TURAL 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-EMPLOYMENT
INCOME IN COMMUNITY PROPERTY 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
business 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 distribu-
tive share of the gross income and deductions;’’.
(b) INTERNAL REVENUE CODE OF 1986 AMENDMENT.—Section
1402(a)(5)(A) of the Internal Revenue Code of 1986 is amended
by striking ‘‘all of the gross income’’ and all that follows and
inserting ‘‘the gross income and deductions attributable to such
26 USC 1402.
26 USC 3102.
26 USC 3121.
Applicability.
42 USC 411 note.
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PUBLIC LAW 108–203—MAR. 2, 2004
trade or business shall be treated as the gross income and deduc-
tions 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 deductions; and’’.
SEC. 426. TECHNICAL AMENDMENTS TO THE RAILROAD RETIREMENT
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’’.
(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 investment 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 oper-
ations;
‘‘(D) employ professional staff, and contract with out-
side advisers, including the Railroad Retirement Board,
to provide legal, accounting, investment advisory or
management services (compensation 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 pro-
ceedings, have and use a seal, conduct business, carry
on operations, and exercise its powers within or without
the District of Columbia, form, own, or participate in enti-
ties 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 appropriate 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 other-
wise provided in section 7(b)(4), to pay benefits payable
under this Act from the assets 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.’’.
(d) FUNDING.—Section 15(j)(8) of the Railroad Retirement Act
of 1974 (45 U.S.C. 231n(j)(8)) is repealed.
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118 STAT. 538
PUBLIC LAW 108–203—MAR. 2, 2004
(e) TRANSFERS.—Section 15A(d)(2) of the Railroad Retirement
Act of 1974 (45 U.S.C. 231n–1(d)(2)) is amended—
(1) by inserting ‘‘or the Railroad Retirement Account’’ after
‘‘National Railroad Retirement Investment Trust’’ the second
place it appears;
(2) by inserting ‘‘or the Railroad Retirement Board’’ after
‘‘National Railroad Retirement Investment Trust’’ the third
place it appears;
(3) by inserting ‘‘(either directly or through a commingled
account consisting only of such obligations)’’ after ‘‘United
States’’ the first place it appears; and
(4) in the third sentence, by inserting before the period
at the end the following: ‘‘or to purchase such additional obliga-
tions’’.
(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 subparagraph (D),
by striking ‘‘trustee’’ and inserting ‘‘Trustee’’.
Subtitle D—Amendments Related to Title
XVI
SEC. 430. EXCLUSION FROM INCOME FOR CERTAIN INFREQUENT OR
IRREGULAR INCOME AND CERTAIN INTEREST OR DIVI-
DEND 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 deter-
mined in accordance with criteria prescribed by the Commis-
sioner of Social Security, is received too infrequently or irregu-
larly 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 resources—
‘‘(A) not excluded under section 1613(a), or
‘‘(B) excluded pursuant to Federal law other than sec-
tion 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.
42 USC 1382a
note.
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118 STAT. 539
PUBLIC LAW 108–203—MAR. 2, 2004
SEC. 431. UNIFORM 9-MONTH RESOURCE EXCLUSION PERIODS.
(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 following such
month with respect to any amount so received 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 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
subsection (d) thereof; and
‘‘(B) any refund of Federal income taxes made to such
individual (or such spouse) by reason 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 eligible spouse on or after such date.
SEC. 432. ELIMINATION OF CERTAIN RESTRICTIONS ON THE APPLICA-
TION OF THE STUDENT EARNED INCOME EXCLUSION.
(a) IN GENERAL.—Section 1612(b)(1) of the Social Security Act
(42 U.S.C. 1382a(b)(1)) is amended by striking ‘‘a child who’’ and
inserting ‘‘under the age of 22 and’’.
(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 enactment of this Act.
SEC. 433. EXCEPTION TO RETROSPECTIVE MONTHLY ACCOUNTING
FOR NONRECURRING INCOME.
(a) IN GENERAL.—Section 1611(c) of the Social Security Act
(42 U.S.C. 1382(c)) is amended by adding at the end the following:
‘‘(9)(A) Notwithstanding paragraphs (1) and (2), any non-
recurring 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 determining the amount of the benefit
for any other month.
‘‘(B) For purposes of subparagraph (A), payments to an indi-
vidual in varying amounts from the same or similar source for
the same or similar purpose shall not be considered to be non-
recurring income.’’.
42 USC 1382a
note.
Applicability.
42 USC 1382b
note.
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118 STAT. 540
PUBLIC LAW 108–203—MAR. 2, 2004
(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 to the amount of the
benefit which would have been payable to such individual if
eligibility had been restored 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 enactment of this Act.
SEC. 434. REMOVAL OF RESTRICTION ON PAYMENT OF BENEFITS TO
CHILDREN WHO ARE BORN OR WHO BECOME BLIND OR
DISABLED AFTER THEIR MILITARY PARENTS ARE STA-
TIONED OVERSEAS.
(a) IN GENERAL.—Section 1614(a)(1)(B)(ii) of the Social Security
Act (42 U.S.C. 1382c(a)(1)(B)(ii)) is amended—
(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 months begin-
ning after the date of enactment of this Act, but only on the
basis of an application filed after such date.
SEC. 
435. 
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 PROVIDED 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 following:
‘‘(15) for the 9-month period beginning after the month
in which received, any grant, scholarship, fellowship, or gift
(or portion of a gift) used to pay the 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.
Applicability.
42 USC 1382a
note.
42 USC 1382c
note.
42 USC 1382
note.
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PUBLIC LAW 108–203—MAR. 2, 2004
LEGISLATIVE HISTORY—H.R. 743:
HOUSE REPORTS: No. 108–46 (Comm. on Ways and Means).
SENATE REPORTS: No. 108–176 (Comm. on Finance).
CONGRESSIONAL RECORD:
Vol. 149 (2003): Mar. 5, considered and rejected in House.
Apr. 2, considered and passed House.
Dec. 9, considered and passed Senate, amended.
Vol. 150 (2004): Feb. 11, House concurred in Senate amendment.
SEC. 436. MONTHLY TREATMENT OF UNIFORMED SERVICE COMPENSA-
TION.
(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 Commis-
sioner of Social Security determines that such treatment would
promote the economical and efficient administration 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.
Approved March 2, 2004.
Applicability.
42 USC 1382
note.
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