[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4070 Engrossed Amendment Senate (EAS)]

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  

                  In the Senate of the United States,

                                                     November 18, 2002.
    Resolved, That the bill from the House of Representatives (H.R. 
4070) entitled ``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 Income beneficiaries with 
representative payees, to enhance program protections, and for other 
purposes.'', do pass with the following

                               AMENDMENT:

            Strike out all after the enacting clause and insert:

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Social Security 
Program Protection Act of 2002''.
    (b) Table of Contents.--The table of contents 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, of 
                            persons fleeing prosecution, custody, or 
                            confinement, and of persons violating 
                            probation or parole.
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.

                        Subtitle B--Enforcement

Sec. 111. Civil monetary penalty authority with respect to wrongful 
                            conversions by representative payees.

                     TITLE II--PROGRAM PROTECTIONS

Sec. 201. Issuance by Commissioner of Social Security of receipts to 
                            acknowledge submission of reports of 
                            changes in work or earnings status of 
                            disabled beneficiaries.
Sec. 202. Denial of title II benefits to persons fleeing prosecution, 
                            custody, or confinement, and to persons 
                            violating probation or parole.
Sec. 203. Requirements relating to offers to provide for a fee a 
                            product or service available without charge 
                            from the Social Security Administration.
Sec. 204. Refusal to recognize certain individuals as claimant 
                            representatives.
Sec. 205. Penalty for corrupt or forcible interference with 
                            administration of Social Security Act.
Sec. 206. Use of symbols, emblems, or names in reference to social 
                            security or medicare.
Sec. 207. Disqualification from payment during trial work period upon 
                            conviction of fraudulent concealment of 
                            work activity.

          TITLE III--ATTORNEY FEE PAYMENT SYSTEM IMPROVEMENTS

Sec. 301. Cap on attorney assessments.

            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 provided for reductions in 
                            disability insurance benefits based on 
                            earnings.
Sec. 404. Availability of Federal and State work incentive services to 
                            additional individuals.
Sec. 405. Technical amendment clarifying treatment for certain purposes 
                            of individual work plans under the Ticket 
                            to Work and Self-Sufficiency Program.

                  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 individual whose earnings are subject to 
                            the laws of a totalization agreement 
                            partner.
Sec. 416. Coverage under divided retirement system for public employees 
                            in Kentucky.
Sec. 417. Compensation for the Social Security Advisory Board.
Sec. 418. 60-month period of employment requirement for application of 
                            government pension offset exemption.

                    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 relating to the Railroad Retirement and 
                            Survivors Improvement Act of 2001.

                  TITLE I--PROTECTION OF BENEFICIARIES

                   Subtitle A--Representative Payees

SEC. 101. AUTHORITY TO REISSUE BENEFITS MISUSED BY ORGANIZATIONAL 
              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 new sentences: 
        ``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 
        combination of such titles;
misuses all or part of an individual's benefit paid to such 
representative payee, the Commissioner of Social Security shall certify 
for payment to the beneficiary or the beneficiary's alternative 
representative 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 new paragraph:
    ``(8) For purposes of this subsection, 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 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 by inserting after 
        the first sentence the following new sentences: ``In any case 
        in which a representative payee that--
            ``(1) is not an individual; or
            ``(2) 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 representative 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).''.
            (2) Misuse of benefits defined.--Section 807 of such Act 
        (42 U.S.C. 1007) is amended by adding at the end the following 
        new subsection:
    ``(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 qualified individual under this title and converts 
such payment, or any part thereof, to a use other than for the use and 
benefit of such other qualified individual. 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 new sentences: ``In any case in 
        which a representative 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 
        combination of such titles;
misuses all or part of an individual's benefit paid to the 
representative 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 the benefit so misused. The provisions 
of this subparagraph are subject to the limitations of subparagraph 
(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 
                new paragraph:
            ``(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 purposes 
        of this title as restitution for benefits under this title, 
        title II, or title VIII that a representative payee of such 
        individual (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 new clause:
    ``(iv) For purposes of this paragraph, 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 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 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 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 nonprofit 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 new 
                paragraph:
    ``(9) For purposes of this subsection, the term `certified 
community-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 such State) in 
accordance with requirements specified by the Commissioner. Any such 
annual certification shall include a copy of any independent audit on 
such 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 nonprofit social 
                        service agency (as defined in subparagraph 
                        (I)), if the agency, in accordance'';
                            (ii) by redesignating items (aa) and (bb) 
                        as subclauses (I) and (II), respectively (and 
                        adjusting the margination accordingly); and
                            (iii) by striking ``subclause (II)(bb)'' 
                        and inserting ``subclause (II)''; and
                    (C) by adding at the end the following new 
                subparagraph:
    ``(I) For purposes of this paragraph, the term `certified 
community-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 Commissioner. 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 subsection 
        shall take effect on the first day of the thirteenth month 
        beginning after the date of 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 conduct, 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 representative 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 
        expedited, 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.''.
            (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 new subsection:
    ``(k) Periodic Onsite Review.--(1) 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) 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 allegation 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.''.
            (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 conduct, 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 appointment 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 
        subparagraph (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 
        expedited, 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, OF PERSONS FLEEING PROSECUTION, 
              CUSTODY, OR CONFINEMENT, AND OF PERSONS VIOLATING 
              PROBATION OR PAROLE.

    (a) Title II Amendments.--Section 205(j)(2) of the Social Security 
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 new subclauses:
            ``(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 clause (iv) or (v) of section 
        202(x)(1)(A), and''.
            (2) in subparagraph (C)(i)(II), by striking ``subparagraph 
        (B)(i)(IV),,'' and inserting ``subparagraph (B)(i)(VI)'' and 
        striking ``section 1631(a)(2)(B)(ii)(IV)'' and inserting 
        ``section 1631(a)(2)(B)(ii)(VI)''; and
            (3) 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 new 
                subclauses:
            ``(IV) such person has previously been convicted as 
        described in subparagraph (B)(i)(IV), unless the Commissioner 
        determines that such certification would be appropriate 
        notwithstanding such conviction, or
            ``(V) such person is person described in clause (iv) or (v) 
        of section 202(x)(1)(A).''.
    (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 
                subparagraph (F); and
                    (C) by inserting after subparagraph (C) the 
                following new subparagraphs:
                    ``(D) 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;
                    ``(E) obtain information concerning whether such 
                person is a person described in paragraph (2) or (3) of 
                section 804(a); and''; and
            (2) 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 new 
                subparagraphs:
                    ``(D) such person has previously been convicted as 
                described in subsection (b)(2)(D), unless the 
                Commissioner determines that such payment would be 
                appropriate notwithstanding such conviction; or
                    ``(E) such person is a person described in 
                paragraph (2) or (3) of section 804(a).''.
    (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 new subclauses:
            ``(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); 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)''; and
            (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 new 
                subclauses:
            ``(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 
        notwithstanding the conviction; or
            ``(V) such person is a person described in section 
        1611(e)(4).''.
    (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 enactment of this Act.
    (e) Report to Congress.--The Commissioner of Social Security, in 
consultation with the Inspector General of the Social Security 
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 representative 
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 
enactment of this Act. The Commissioner shall include in such report 
any recommendations that the Commissioner considers appropriate.

SEC. 104. FEE FORFEITURE IN CASE OF BENEFIT MISUSE BY REPRESENTATIVE 
              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 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 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 December 31, 2002.

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 
        paragraphs (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 new 
        paragraph:
    ``(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 representative 
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 misused 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 new subsection:
    ``(l) Liability for Misused Amounts.--
            ``(1) In general.--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 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 overpayments. 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 individual or such qualified 
        individual's alternative representative 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 
        following:
    ``(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 representative 
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 payment 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 December 
31, 2002.

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 Security 
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 
        subparagraphs (F) and (G), respectively; and
            (2) by inserting after subparagraph (D) the following new 
        subparagraph:
    ``(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.''.
    (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 new 
        paragraph:
            ``(3) Authority to redirect delivery of benefit payments 
        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 paragraph (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 new 
clause:
    ``(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 amendment made by this section shall take 
effect 180 days after the date of enactment of this Act.

                        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 new 
paragraph:
    ``(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 enactment of 
this Act.

                     TITLE II--PROGRAM PROTECTIONS

SEC. 201. ISSUANCE BY COMMISSIONER OF SOCIAL SECURITY OF RECEIPTS TO 
              ACKNOWLEDGE SUBMISSION OF REPORTS OF CHANGES IN WORK OR 
              EARNINGS STATUS OF DISABLED BENEFICIARIES.

    Effective as soon as possible, but not later than 1 year after the 
date of 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 beneficiary'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. 202. 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, and Fugitives'';
            (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 
        confinement 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 which, in the case of the State of New 
        Jersey, is a high misdemeanor under the laws of such State, or
            ``(v) is violating a condition of probation or parole 
        imposed under Federal or State law.
In the case of an individual from whom such monthly benefits have been 
withheld pursuant to clause (iv), the Commissioner may, for good cause 
shown, pay such withheld benefits to the individual.''; and
            (5) in paragraph (3), by adding at the end the following 
        new subparagraph:
    ``(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 written 
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--
                    ``(I) is described in clause (iv) or (v) of 
                paragraph (1)(A); and
                    ``(II) has information that is necessary for the 
                officer to conduct the officer's official duties; and
            ``(ii) the location or apprehension of the beneficiary is 
        within the officer's official duties.''.
    (b) Regulations.--Not later than 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, the Commissioner of Social Security shall 
promulgate regulations governing payment by the Commissioner, for good 
cause shown, of withheld benefits, pursuant to the last sentence of 
section 202(x)(1)(A) of the Social Security Act (as amended by 
subsection (a)).
    (c) Effective Date.--The amendments made by subsection (a) 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. 203. 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 
        new paragraph:
    ``(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 Administration 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 
        Commissioner 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 
        individual'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 Commissioner shall 
promulgate such final regulations within 1 year after the date of 
enactment of this Act.

SEC. 204. REFUSAL TO RECOGNIZE CERTAIN INDIVIDUALS AS CLAIMANT 
              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 nonattorney representative 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 
suspended 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 representative 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. 205. PENALTY FOR CORRUPT OR FORCIBLE INTERFERENCE 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 new 
section:

   ``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 Administration, or to a member of the family of 
such an officer or employee or contractor.''.

SEC. 206. 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 Administration','', by striking ``or `Medicaid', '' 
        and inserting `` `Medicaid', `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 
        Administration,'' 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 enactment of this 
Act.

SEC. 207. DISQUALIFICATION FROM PAYMENT DURING TRIAL WORK PERIOD UPON 
              CONVICTION OF FRAUDULENT CONCEALMENT 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 new 
paragraph:
    ``(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 repayments shall 
in all cases be in addition to any amounts for which such individual is 
liable as overpayments by reason of such concealment.''.
    (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.

          TITLE III--ATTORNEY FEE PAYMENT SYSTEM IMPROVEMENTS

SEC. 301. CAP ON ATTORNEY ASSESSMENTS.

    (a) In General.--Section 206(d)(2)(A) of the Social Security Act 
(42 U.S.C. 406(d)(2)(A)) is amended--
            (1) by inserting ``, except that the maximum amount of the 
        assessment may not exceed the greater of $75 or the adjusted 
        amount as provided pursuant to the following two sentences'' 
        after ``subparagraph (B)''; and
            (2) by adding at the end the following new sentence: ``In 
        the case of any calendar year beginning after 2003, 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 multiple of $10 shall be 
        rounded to the next lowest multiple of $10, but in no case less 
        than $75.''.
    (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 on or after the first day of the first month that begins 
after 180 days after the date of enactment of this Act.

            TITLE IV--MISCELLANEOUS AND TECHNICAL AMENDMENTS

    Subtitle A--Amendments Relating to the Ticket to Work and Work 
                   Incentives Improvement Act of 1999

SEC. 401. APPLICATION OF DEMONSTRATION AUTHORITY SUNSET DATE TO NEW 
              PROJECTS.

    Section 234 of the Social Security Act (42 U.S.C. 434) is amended--
            (1) in the first sentence of subsection (c), by striking 
        ``conducted under subsection (a)'' and inserting ``initiated 
        under subsection (a) on or before December 17, 2004''; and
            (2) in subsection (d)(2), by amending the first sentence to 
        read as follows: ``The authority to initiate projects under the 
        preceding provisions of this section shall terminate on 
        December 18, 2004.''.

SEC. 402. EXPANSION OF WAIVER AUTHORITY AVAILABLE IN CONNECTION WITH 
              DEMONSTRATION PROJECTS PROVIDING FOR REDUCTIONS IN 
              DISABILITY INSURANCE BENEFITS BASED ON EARNINGS.

    Section 302(c) of the Ticket to Work and Work 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 PROVIDED 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 demonstration 
projects under this section shall be paid from funds available for the 
administration of title II or XVIII of the Social Security Act, as 
appropriate. Benefits payable to or on behalf of individuals by reason 
of participation in projects under this section shall be made from the 
Federal Disability Insurance Trust Fund and the Federal Old-Age and 
Survivors Insurance Trust Fund, as determined 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:
            ``(2) Disabled beneficiary.--The term `disabled 
        beneficiary' 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 
                Commissioner 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 subsection 
        shall apply with respect to grants, cooperative agreements, or 
        contracts entered into on or after the date of 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 
        beneficiary' 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 
                Commissioner 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 subsection 
        shall apply with respect to payments provided after the date of 
        enactment of this Act.

SEC. 405. TECHNICAL AMENDMENT CLARIFYING TREATMENT FOR CERTAIN PURPOSES 
              OF INDIVIDUAL WORK PLANS UNDER THE TICKET TO WORK AND 
              SELF-SUFFICIENCY PROGRAM.

    (a) In General.--Section 1148(g)(1) of the Social Security Act (42 
U.S.C. 1320b-19) is amended by adding at the end, after and below 
subparagraph (E), the following new sentence:
        ``An individual work plan established pursuant to this 
        subsection 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).

                  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 individual, a 
transcript''.
    (b) Effective Date.--The amendment made by this section shall apply 
with respect to final determinations issued (upon remand) on or after 
the date of enactment of this Act.

SEC. 412. NONPAYMENT OF BENEFITS UPON REMOVAL FROM THE UNITED STATES.

    (a) In General.--Paragraphs (1) and (2) of section 202(n) of the 
Social Security Act (42 U.S.C. 402(n)(1), (2)) are each amended by 
striking ``or (1)(E)''.
    (b) Effective Date.--The amendment made by this section to section 
202(n)(1) of the Social Security Act shall apply to individuals with 
respect to whom the Commissioner of Social Security receives a removal 
notice from the Attorney General after the date of enactment of this 
Act. The amendment made by this section to section 202(n)(2) of the 
Social Security Act shall apply with respect to removals occurring 
after the date of enactment of this Act.

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 provisions of law:
            (1)(A) Section 201(c)(2) of the Social Security Act (42 
        U.S.C. 401(c)(2)).
            (B) Section 1817(b)(2) of the Social Security Act (42 
        U.S.C. 1395i(b)(2)).
            (C) Section 1841(b)(2) of the Social Security Act (42 
        U.S.C. 1395t(b)(2)).
            (2)(A) Section 221(c)(3)(C) of the Social 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 SURVIVOR 
              BENEFITS.

    (a) Widows.--Section 216(c) of the Social Security Act (42 U.S.C. 
416(c)) is amended--
            (1) by redesignating subclauses (A) through (C) of clause 
        (6) as subclauses (i) through (iii), 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 new paragraph:
    ``(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 
        individual's marriage to the surviving wife,
            ``(B) the prior wife was institutionalized during the 
        individual's marriage to the prior wife due to mental 
        incompetence or similar incapacity,
            ``(C) during the period of the prior wife's 
        institutionalization, 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
            (5) by adding at the end the following new paragraph:
    ``(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 
        individual's marriage to the surviving husband,
            ``(B) the prior husband was institutionalized during the 
        individual's marriage to the prior husband due to mental 
        incompetence or similar incapacity,
            ``(C) during the period of the prior husband's 
        institutionalization, 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 
        institutionalized 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 
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.

    (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,'' 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 level IV of 
the Executive Schedule for each day during which the member is engaged 
in performing a function of the Board. 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 intermittently.''.
    (b) Effective Date.--The amendment made by this section shall be 
effective as of January 1, 2002.

SEC. 418. 60-MONTH PERIOD OF EMPLOYMENT REQUIREMENT FOR APPLICATION OF 
              GOVERNMENT PENSION OFFSET EXEMPTION.

    (a) Wife's Insurance Benefits.--Section 202(b)(4)(A) of the Social 
Security Act (42 U.S.C. 402(b)(4)(A)) is amended by striking ``if, on'' 
and inserting ``if, during any portion of the last 60 months of such 
service prior to''.
    (b) Husband's Insurance Benefits.--Section 202(c)(2)(A) of such Act 
(42 U.S.C. 402(c)(2)(A)) is amended by striking ``if, on'' and 
inserting ``if, during any portion of the last 60 months of such 
service prior to''.
    (c) Widow's Insurance Benefits.--Section 202(e)(7)(A) of such Act 
(42 U.S.C. 402(e)(7)(A)) is amended by striking ``if, on'' and 
inserting ``if, during any portion of the last 60 months of such 
service prior to''.
    (d) Widower's Insurance Benefits.--Section 202(f)(2)(A) of such Act 
(42 U.S.C. 402(f)(2)(A)) is amended by striking ``if, on'' and 
inserting ``if, during any portion of the last 60 months of such 
service prior to''.
    (e) Mother's and Father's Insurance Benefits.--Section 202(g)(4)(A) 
of the such Act (42 U.S.C. 402(g)(4)(A)) is amended by striking ``if, 
on'' and inserting ``if, during any portion of the last 60 months of 
such service prior to''.
    (f) Effective Date.--The amendments made by this section shall 
apply with respect to applications for benefits under title II of the 
Social Security Act filed on or after the first day of the first month 
that begins after the date of enactment of this Act, except that such 
amendments shall not apply to individuals whose last day of employment 
while in the service of any State (or political subdivision thereof, as 
defined in section 218(b)(2) of the Social Security Act (42 U.S.C. 
418(b)(2))) constitutes covered employment (as defined in section 210 
of such Act (42 U.S.C. 410)) and occurs on or before June 30, 2003, 
provided that such period of covered employment for such governmental 
entity began on or before December 31, 2002.

                    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''.

SEC. 422. TECHNICAL CORRECTION RELATING TO RETIREMENT BENEFITS 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 Terminology and Citations Respecting Removal From 
the United States.--Section 202(n) of the Social Security Act (42 
U.S.C. 402(n)) (as amended by section 412) is amended further--
            (1) by striking ``deportation'' each place it appears and 
        inserting ``removal'';
            (2) by striking ``deported'' each place it appears and 
        inserting ``removed'';
            (3) in paragraph (1) (in the matter preceding subparagraph 
        (A)), by striking ``under section 241(a) (other than under 
        paragraph (1)(C) thereof)'' and inserting ``under section 
        237(a) (other than paragraph (1)(C) thereof) or 212(a)(6)(A)'';
            (4) in paragraph (2), by striking ``under any of the 
        paragraphs of section 241(a) of the Immigration and Nationality 
        Act (other than under paragraph (1)(C) thereof)'' and inserting 
        ``under any of the paragraphs of section 237(a) of the 
        Immigration and Nationality Act (other than paragraph (1)(C) 
        thereof) or under section 212(a)(6)(A) of such Act'';
            (5) in paragraph (3)--
                    (A) by striking ``paragraph (19) of section 
                241(a)'' and inserting ``subparagraph (D) of section 
                237(a)(4)''; and
                    (B) by striking ``paragraph (19)'' and inserting 
                ``subparagraph (D)''; and
            (6) in the heading, by striking ``Deportation'' and 
        inserting ``Removal''.
    (b) Correction of Citation Respecting the Tax Deduction Relating to 
Health Insurance Costs of Self-Employed Individuals.--Section 
211(a)(15) of such Act (42 U.S.C. 411(a)(15)) is amended by striking 
``section 162(m)'' and inserting ``section 162(l)''.
    (c) Elimination of Reference to Obsolete 20-Day Agricultural Work 
Test.--Section 3102(a) of the Internal Revenue Code of 1986 is amended 
by striking ``and the employee has not performed agricultural labor for 
the employer on 20 days or more in the calendar year for cash 
remuneration computed on a time basis''.

SEC. 425. TECHNICAL CORRECTION RESPECTING SELF-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 distributive 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 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 distributive share of the gross income 
and deductions; and''.

SEC. 426. TECHNICAL AMENDMENTS RELATING 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) Transfers.--
            (1) Section 15(k) of the Railroad Retirement Act of 1974 
        (45 U.S.C. 231n(k)) is amended by adding at the end the 
        following: ``At the direction of the Railroad Retirement Board, 
        the National Railroad Retirement Investment Trust shall 
        transfer funds to the Railroad Retirement Account.''.
            (2) Section 15A(d)(2) of the Railroad Retirement Act of 
        1974 (45 U.S.C. 231n-1(d)(2)) is amended--
                    (A) by inserting ``or the Railroad Retirement 
                Account'' after ``National Railroad Retirement 
                Investment Trust'' the second place it appears;
                    (B) by inserting ``or the Railroad Retirement 
                Board'' after ``National Railroad Retirement Investment 
                Trust'' the third place it appears; and
                    (C) by inserting ``or the Railroad Retirement 
                Board'' after ``the Trust''.
    (c) Investment Authority.--Section 15(j)(4) of the Railroad 
Retirement Act of 1974 (45 U.S.C. 231n(j)(4)) is amended by striking 
``shall'' and inserting ``may''.
    (d) Clerical.--
            (1) Subparagraphs (C) and (D) of section 15(j)(4) of the 
        Railroad Retirement Act of 1974 (45 U.S.C. 231n(j)(4)) are each 
        amended by striking ``assets in the Trust'' and inserting 
        ``assets of the Trust''.
            (2) Paragraph (5) of section 15(j) of the Railroad 
        Retirement Act of 1974 (45 U.S.C. 231n(j)(5)) is amended--
                    (A) in subparagraph (B), by striking ``trustee's'' 
                each place it appears and inserting ``Trustee's'';
                    (B) in subparagraph (C), by striking ``trustee'' 
                and ``trustees'' each place it appears and inserting 
                ``Trustee'' and ``Trustees'', respectively; and
                    (C) in the matter preceding clause (i) of 
                subparagraph (D), by striking ``trustee'' and inserting 
                ``Trustee''.

            Attest:

                                                             Secretary.
107th CONGRESS

  2d Session

                               H. R. 4070

_______________________________________________________________________

                               AMENDMENT