[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 743 Enrolled Bill (ENR)]

        H.R.743

                       One Hundred Eighth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
           the twentieth day of January, two thousand and four


                                 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.

    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 confinement, 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.
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 withholding procedures to non-attorney representatives.
Sec. 304. GAO study regarding the fee payment process for claimant 
          representatives.

            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 individuals.
Sec. 405. Technical amendment clarifying treatment for certain purposes 
          of individual work plans under the Ticket to Work and Self-
          Sufficiency Program.
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 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 and Louisiana.
Sec. 417. Compensation for the Social Security Advisory Board.
Sec. 418. Sixty-month period of employment requirement for application 
          of government pension offset exemption.
Sec. 419. Disclosure to workers of effect of windfall elimination 
          provision and government 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' 
          Improvement Act of 2001.

               Subtitle D--Amendments Related to Title XVI

Sec. 430. Exclusion from income for certain infrequent or irregular 
          income and certain 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 stationed overseas.
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 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: ``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:
    ``(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 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 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:
    ``(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 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 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 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:
        ``(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:
    ``(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 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 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:
    ``(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 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.''.
        (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 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 
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 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 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:
    ``(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 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 OR FLEEING PROSECUTION, CUSTODY, OR 
              CONFINEMENT.

    (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:
        ``(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 written 
request of the officer, with the current address, social security 
account number, and photograph (if applicable) of any person 
investigated under this paragraph, 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--
        ``(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 notwithstanding 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 subparagraph (F); 
        and
            (C) by inserting after subparagraph (C) the following:
            ``(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 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 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 
        notwithstanding 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 notwithstanding 
    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 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 
account number, and photograph (if applicable) of any person 
investigated under this subparagraph, 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--
        ``(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 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 the 
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 180 days after the date of the enactment 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 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:
    ``(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:
    ``(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 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 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:
    ``(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:
        ``(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:
    ``(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 benefits 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 Representatives and the 
Committee on Finance of the Senate.''.

                        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 Security 
    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 
    representation 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,'';
            (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 
        sentence;
            (D) by inserting ``or because of such withholding of 
        disclosure of a material fact'' after ``because of such 
        statement 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 
    representation 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 statement or representation 
    with such omission is false or misleading 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 centralized computer 
file described in section 202.

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.

    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 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. 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, Probationers, 
    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 
    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, 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 
    individual 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 connection 
    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 otherwise be withheld 
pursuant to clause (iv) or (v) of subparagraph (A) if the Commissioner 
determines that--
        ``(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 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 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 regardless 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 subparagraph (A) as 
an eligible individual or eligible spouse if the Commissioner 
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 exonerating 
    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 
    underlying the imposition of the probation or parole described in 
    subparagraph (A)(ii) was nonviolent and not drug-related, and
        ``(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 
    paragraph (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 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 the 
enactment of this Act.

SEC. 205. 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 non-attorney 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. 206. CRIMINAL 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:


    ``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. 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 
    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 the enactment of 
this Act.

SEC. 208. 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:
    ``(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.

SEC. 209. AUTHORITY FOR JUDICIAL ORDERS OF RESTITUTION.

    (a) Amendments to Title II.--Section 208 of the Social Security Act 
(42 U.S.C. 408) is amended--
        (1) by redesignating subsections (b), (c), and (d) as 
    subsections (c), (d), and (e), respectively;
        (2) by inserting after subsection (a) the following:
    ``(b)(1) 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 victims of such offense specified in paragraph (4).
    ``(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 subsection.
    ``(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 benefit 
        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 Insurance 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 paragraph 
    (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 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 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 
    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 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 XVI by the individual.''.
    (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 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 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 paragraph 
    (1)) by striking ``(1) If a person'' and all that follows through 
    ``(2)''.
    (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 program or whose amount of such 
benefits, is determined by considering 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 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 benefits 
    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 Commissioner 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 
        subsections (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 provisions 
relating to the cross-program recovery of overpayments made under 
programs administered by the Commissioner of Social Security, 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 following:
    ``(6) For provisions relating to the cross-program recovery of 
overpayments made under programs administered by the Commissioner 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 outstanding on or after such date.

SEC. 211. PROHIBITION ON PAYMENT OF TITLE II BENEFITS TO PERSONS 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 
specified 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 subparagraph (D)), and
            ``(C) the business engaged in or service as a crewman 
        performed is within the scope of the terms of such individual's 
        admission to the United States.''.
    (b) Disability Benefits.--Section 223(a)(1) of the Social Security 
Act (42 U.S.C. 423(a)(1)) is amended--
        (1) by redesignating subparagraphs (C) and (D) as subparagraphs 
    (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 crewman 
            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 numbers issued on 
or after January 1, 2004.

   TITLE III--ATTORNEY REPRESENTATIVE 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: ``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 multiple 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 
        subsection (a)(2)''; and
            (B) 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 `paragraph (7)(A) or (8)(A) of section 
    1631(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 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 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 $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 
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 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 Congress 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 (hereafter 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 assessment 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 administration.
    (b) Standards for Inclusion in Demonstration Project.--Fee-
withholding procedures may be extended under the demonstration 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 background 
    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 entitlement 
    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 standards as 
    the Commissioner may prescribe.
    (c) Assessment of Fees.--
        (1) In general.--The Commissioner may assess representatives 
    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 general fund of the 
    Treasury, based on such allocations as the Commissioner of Social 
    Security determines appropriate.
        (3) Authorization of appropriations.--The fees 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 administering the prerequisites 
    described in subsection (b).
    (d) Notice to Congress and Applicability of Fee Withholding 
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 operation 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 for representation is 
entered into by such non-attorney representatives 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 termination 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 representation 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 
            representatives, such as with an advocacy group, State or 
            local government, or insurance or other company;
                (iii) geographical distribution between urban and rural 
            areas;
                (iv) the nature of claimants' cases, such as whether 
            the cases are for disability insurance benefits only, 
            supplemental security income benefits only, or concurrent 
            benefits;
                (v) the relationship of such claimant representatives 
            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 payment 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 benefit 
        outcomes, adjusted for differences in claimant representatives' 
        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 section 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 Commissioner 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, claimant 
    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 operation 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 subsection (a).

            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, 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 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 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 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 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 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 the 
    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(g)(1)) is amended by adding at the end, after and below 
subparagraph (E), the following:
    ``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).

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

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

    (a) In General.--Section 202(n) of the Social Security Act (42 
U.S.C. 402(n)) is amended--
        (1) in paragraph (1), by striking ``section 241(a) (other than 
    under paragraph (1)(C) or (1)(E) thereof) of the Immigration and 
    Nationality Act'' and 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 
    association 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 security.--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 
        notifications 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 security.--The 
    amendment made by subsection (b)(2) shall be effective as if 
    enacted on March 1, 2003.

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:
    ``(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:
    ``(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 
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 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 intermittently.''.
    (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 subparagraph, 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.
    ``(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 benefit 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 paragraph 
        (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 paragraphs 
        (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 paragraphs 
        (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 ``paragraph 
            (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 ``paragraph 
            (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)''.
                (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 subsection (a) of 
    this section) occurs within 5 years after the date of enactment of 
    this Act--
            (A) the 60-month period described in such subparagraph (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 enactment 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 ELIMINATION 
              PROVISION AND GOVERNMENT PENSION OFFSET PROVISION.

    (a) Inclusion of Noncovered Employees as Eligible Individuals 
Entitled to Social Security Account Statements.--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
        (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.--Section 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 
    paragraph (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 provisions 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 periodic payments or benefits payable based on 
earnings derived in such service. Such notice shall be in a form which 
shall be prescribed 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.

SEC. 420. POST-1956 MILITARY WAGE CREDITS.

    (a) Payment to the Social Security Trust Funds in Satisfaction 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 benefits 
    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 enactment 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''.

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 Citation Respecting the Tax Deduction Relating to 
Health Insurance Costs of Self-Employed Individuals.--Section 
211(a)(15) of the Social Security Act (42 U.S.C. 411(a)(15)) is amended 
by striking ``section 162(m)'' and inserting ``section 162(l)''.
    (b) Elimination of Reference to Obsolete 20-Day Agricultural Work 
Test.--Section 3102(a) of the Internal Revenue Code of 1986 is amended 
by striking ``and the employee has not performed agricultural labor for 
the employer on 20 days or more in the calendar year for cash 
remuneration computed on a time basis''.

SEC. 425. TECHNICAL CORRECTION RESPECTING SELF-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 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 
        operations;
            ``(D) employ professional staff, and contract with outside 
        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 proceedings, 
        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 entities of any kind, enter into 
        contracts and agreements necessary 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 
        otherwise 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.
    (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 
    obligations''.
    (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 DIVIDEND INCOME.

    (a) Infrequent or Irregular Income.--Section 1612(b)(3) of the 
Social Security Act (42 U.S.C. 1382a(b)(3)) is amended to read as 
follows--
        ``(3) in any calendar quarter, the first--
            ``(A) $60 of unearned income, and
            ``(B) $30 of earned income,
    of such individual (and such spouse, if any) which, as determined 
    in accordance with criteria prescribed by the Commissioner of 
    Social Security, is received too infrequently or irregularly to be 
    included;''.
    (b) Interest or Dividend Income.--Section 1612(b) of the Social 
Security Act (42 U.S.C. 1382a(b)) is amended--
        (1) in paragraph (21), by striking ``and'' at the end;
        (2) in paragraph (22), by striking the period and inserting ``; 
    and''; and
        (3) by adding at the end the following:
        ``(23) interest or dividend income from resources--
            ``(A) not excluded under section 1613(a), or
            ``(B) excluded pursuant to Federal law other than section 
        1613(a).''.
    (c) Effective Date.--The amendments made by this section shall be 
effective with respect to benefits payable for months in calendar 
quarters that begin more than 90 days after the date of the enactment 
of this Act.

SEC. 431. UNIFORM 9-MONTH RESOURCE EXCLUSION 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 APPLICATION 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 nonrecurring 
income which is paid to an individual in the first month of any period 
of eligibility shall be taken into account in determining the amount of 
the benefit under this title of such individual (and his eligible 
spouse, if any) only for that month, and shall not be taken into 
account in determining the amount of the benefit for any other month.
    ``(B) For purposes of subparagraph (A), payments to an individual 
in varying amounts from the same or similar source for the same or 
similar purpose shall not be considered to be nonrecurring income.''.
    (b) Deletion of Obsolete Material.--Section 1611(c)(2)(B) of the 
Social Security Act (42 U.S.C. 1382(c)(2)(B)) is amended to read as 
follows:
        ``(B) in the case of the first month following a period of 
    ineligibility in which eligibility is restored after the first day 
    of such month, bear the same ratio 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 STATIONED 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 beginning 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.

SEC. 436. MONTHLY TREATMENT OF UNIFORMED SERVICE COMPENSATION.

    (a) Treatment of Pay as Received When Earned.--Section 1611(c) of 
the Social Security Act (42 U.S.C. 1382(c)), as amended by section 
435(a), is amended by adding at the end the following:
    ``(10) For purposes of this subsection, remuneration for service 
performed as a member of a uniformed service may be treated as received 
in the month in which it was earned, if the Commissioner of Social 
Security determines that such treatment would promote the economical 
and efficient 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.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.