[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 709 Introduced in House (IH)]
110th CONGRESS
1st Session
H. R. 709
To amend title II of the Social Security Act to restrict totalization
agreements between the United States and other countries to providing
for appropriate exchange of Social Security taxes or contributions
between the parties to such agreements, and to prohibit crediting of
individuals under such title with earnings from employment or self-
employment in the United States performed while such individuals are
not citizens, nationals, or lawful permanent residents of the United
States and are not authorized by law to be employed in the United
States.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 29, 2007
Mr. Gallegly introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend title II of the Social Security Act to restrict totalization
agreements between the United States and other countries to providing
for appropriate exchange of Social Security taxes or contributions
between the parties to such agreements, and to prohibit crediting of
individuals under such title with earnings from employment or self-
employment in the United States performed while such individuals are
not citizens, nationals, or lawful permanent residents of the United
States and are not authorized by law to be employed in the United
States.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Total Overhaul of Totalization
Agreements Law of 2007''.
SEC. 2. RESTRICTION OF TOTALIZATION AGREEMENTS TO PROVIDING FOR
APPROPRIATE EXCHANGE OF SOCIAL SECURITY TAXES OR
CONTRIBUTIONS.
(a) In General.--Section 233(c)(1) of the Social Security Act (42
U.S.C. 433(c)(1)) is amended--
(1) in subsection (a), by striking ``for the purposes of''
and all that follows and inserting the following: ``for the
purposes of providing appropriate exchange between the parties
to such agreements of taxes or contributions paid under their
respective social security systems, as provided in subsection
(c)(1).''; and
(2) by striking subsection (c)(1) and inserting the
following:
``(c)(1) Any agreement establishing a totalization arrangement
pursuant to this section between the United States and another country
shall provide that--
``(A) in any case in which--
``(i) an individual who is a citizen or national of
the other country or lawfully admitted to the other
country for permanent residence in the other country
becomes entitled to cash benefits under the social
security system of the other country, and
``(ii) such individual (or, in the case of a
survivor or derivative benefit, the individual on whose
contributions such benefits are based) has been
credited with at least 6 quarters of coverage as
defined in section 213 based on wages paid for services
performed in the United States or self-employment
income derived in the United States,
the Secretary of the Treasury shall transfer from the Federal
Old-Age and Survivors Insurance Trust Fund and the Federal
Disability Insurance Trust Fund to the other country amounts
appropriated to each such Trust Fund under section 201 in
connection with taxes under chapters 2 and 21 of the Internal
Revenue Code of 1986 paid in connection with such wages and
self-employment income, and
``(B) in any case in which--
``(i) an individual who is a citizen or national of
the United States or lawfully admitted for permanent
residence in the United States becomes entitled to cash
benefits under this title, and
``(ii) such individual (or, in the case of a
survivor or derivative benefit, the individual on whose
wages and self-employment income such benefits are
based) has been credited with a period of coverage
under the social security system of the other country,
based on service performed, or earnings derived, in the
other country, equivalent (under the terms of the
agreement) to 6 quarters of coverage as defined in
section 213,
the other country shall pay to the United States an amount
equivalent to any taxes or other contributions paid by the
credited individual described in clause (ii) or such
individual's employer to the social security system of the
other country, based on such service or earnings, as required
under the social security system of the other country.''.
(b) Conforming Amendment.--Section 233(c)(3) of such Act is amended
to read as follows:
``(3) Any such agreement shall provide for the exchange of such
information between the parties to the agreement as is necessary to
provide for the transfers between the parties under paragraph (1). The
Secretary of the Treasury and the Commissioner of Social Security shall
exchange such information as is necessary to enable the Secretary of
the Treasury to carry out any transfers referred to in paragraph
(1)(A).''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to agreements becoming effective on or after January
1, 2007.
SEC. 3. LIMITATIONS ON COVERAGE OF INDIVIDUALS BASED ON EARNINGS BY
INDIVIDUALS IN THE UNITED STATES WHILE SUCH INDIVIDUALS
WERE NOT CITIZENS, NATIONALS, OR LAWFUL PERMANENT
RESIDENTS OF THE UNITED STATES AND WERE NOT AUTHORIZED TO
BE EMPLOYED IN THE UNITED STATES.
(a) In General.--Section 215(e) of the Social Security Act (42
U.S.C. 415(e)) is amended--
(1) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively;
(2) by inserting ``(1)'' after ``(e)''; and
(3) by adding at the end the following new paragraph:
``(2) For purposes of subsections (b) and (d), in computing an
individual's average indexed monthly earnings (or in the case of an
individual whose primary insurance amount is computed under section
215(a) as in effect prior to January 1979, average monthly wage), such
individual shall not be credited with any wages paid to such individual
for services performed in the United States, or any self-employment
income derived by such individual in the United States, if such
services were performed, or such self-employment income was derived,
while such individual was neither a citizen or national of the United
States nor lawfully admitted for permanent residence in the United
States and was not authorized to be employed in the United States.''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply with respect to wages paid, and self-employment income derived,
before, on, or after the date of the enactment of this Act.
Notwithstanding section 215(f)(1) of the Social Security Act (42 U.S.C.
415(f)(1)), as soon as practicable after the date of the enactment of
this Act, the Commissioner of Social Security shall recompute all
primary insurance amounts to the extent necessary to carry out such
amendments. Such amendments shall affect benefits only for months after
the date of the enactment of this Act.
<all>