SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Social Security Attorney Fee Payment 
System Improvement Act of 2002''.

SEC. 2. 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 by inserting ``, except that the 
maximum amount of the assessment may not exceed $75'' after 
``subparagraph (B)''.
    (b) Effective Date.--The amendment 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 (42 U.S.C. 406) on or after the first day of the first 
month that begins after 120 days after the date of enactment of this 
Act.

SEC. 3. 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), by striking ``in subparagraphs 
        (A)(ii)(I) and (C)(i),'' and inserting ``in subparagraphs 
        (A)(ii)(I) and (D)(i) of subsection (a)(2)'', and by striking 
        ``and'' at the end;
            (3) by striking subparagraph (A)(ii) and inserting the 
        following:
            ``(ii) by substituting, in subsections (a)(2)(B) and 
        (b)(1)(B)(i), the phrase `section 1631(a)(7)(A) or the 
        requirements of due process of law' for the phrase `subsection 
        (g) or (h) of section 223';
            ``(iii) by substituting, in subsection (a)(2)(C)(i), the 
        phrase `under title II' for the phrase `under title XVI';
            ``(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 `determined 
        before any applicable reduction under section 1127(a))'.''; and
            (4) by striking subparagraph (B) and inserting the 
        following new subparagraphs:
    ``(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.
    ``(II) The percentage specified in this subclause is such 
percentage 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.
    ``(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 subparagraph 
shall be deposited in the Treasury in a separate fund created for this 
purpose.
    ``(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) 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 1631(d)(2) of the 
Social Security Act (42 U.S.C. 1383(d)(2)) on or after the first day of 
the first month that begins after 270 days after the date of enactment 
of this Act.
Output: Social Security Attorney Fee Payment System Improvement Act of 2002 - Amends title II (Old Age, Survivors and Disability Insurance) (OASDI) of the Social Security Act (SSA) to set a cap of $75 on assessments owed by attorney representatives upon receiving payment for representing a successful claimant for past-due benefits.Amends title XVI (Supplemental Security Income) (SSI) of the Social Security Act to extend a similar payment system to attorney representatives of claimants who obtain a favorable court judgment for past-due SSI benefits. Sets a cap to such an attorney payment by the Commissioner of Social Security of 25% of the amount of such past-due benefits.