[Congressional Record Volume 149, Number 53 (Wednesday, April 2, 2003)]
[House]
[Pages H2591-H2603]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
PROVIDING FOR CONSIDERATION OF H.R. 743, SOCIAL SECURITY PROTECTION ACT
OF 2003
Mr. LINDER. Mr. Speaker, by direction of the Committee on Rules, I
call up House Resolution 168 and ask for its immediate consideration.
The Clerk read the resolution, as follows:
H. Res. 168
Resolved, That upon the adoption of this resolution it
shall be in order without intervention of any point of order
to consider in
[[Page H2592]]
the House the bill (H.R. 743) 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. The bill
shall be considered as read for amendment. The amendment
recommended by the Committee on Ways and Means now printed in
the bill shall be considered as adopted. The previous
question shall be considered as ordered on the bill, as
amended, and on any further amendment thereto to final
passage without intervening motion except: (1) one hour of
debate on the bill, as amended, equally divided and
controlled by the chairman and ranking minority member of the
Committee on Ways and Means; (2) the further amendment
printed in the report of the Committee on Rules accompanying
this resolution, if offered by Representative Green of Texas
or his designee, which shall be in order without intervention
of any point of order, shall be considered as read, and shall
be separately debatable for 40 minutes equally divided and
controlled by the proponent and an opponent; and (3) one
motion to recommit with or without instructions.
The SPEAKER pro tempore (Mr. LaHood). The gentleman from Georgia (Mr.
Linder) is recognized for 1 hour.
Mr. LINDER. Mr. Speaker, for the purposes of debate only, I yield the
customary 30 minutes to the gentleman from Texas (Mr. Frost), pending
which I yield myself such time as I may consume. During consideration
of this resolution, all time yielded is for the purpose of debate only.
H. Res. 168 is a modified closed rule that provides 1 hour of debate
in the House, equally divided and controlled by the chairman and
ranking minority member of the Committee on Ways and Means.
It waives all points of order against consideration of the bill and
provides that the amendment recommended by the Committee on Ways and
Means now printed in the bill shall be considered as adopted. H. Res.
168 provides for consideration of the amendment printed in the
Committee on Rules report accompanying the resolution, if offered by
the gentleman from Texas (Mr. Green) or his designee, which shall be
considered as read and shall be separately debatable for 40 minutes,
equally divided and controlled by the proponent and an opponent.
H. Res. 168 waives all points of order against the amendment printed
in the report and provides one motion to recommit with or without
instructions.
Mr. Speaker, I urge my colleagues to join me in approving this rule
so that the full House can proceed to work its will on the underlying
Social Security reform legislation.
On March 5, just about a month ago, the House considered this bill
with an amendment under suspension of the rules. A bipartisan majority
of the House voted to approve this bill, 249 to 180, but it fell short
of the needed two-thirds majority to pass the House under suspension.
So today we are bringing it back to the House for further deliberation.
The controversy that arose during initial consideration of H.R. 743
last month dealt with the language in this bill closing the so-called
``last day rule.''
At the recommendation of the General Accounting Office, which
estimates that this loophole could cost the Social Security program
$450 million, this bill is seeking to eliminate the ``last day rule.''
The ``last day rule'' allows some workers in certain States to switch
job classifications on their last day of service, pay Social Security
payroll taxes for 1 day, and magically become eligible for Social
Security spousal or survivor benefits without the government pension
offset being applied to their benefits.
H.R. 743 eliminates this problem by requiring individuals to work in
a government job that is covered by Social Security for the last 60
calendar months of employment in order to be exempt from the GPO. This
is truly a reasonable proposal which should be promptly enacted into
law.
The rule before us makes in order an amendment from the gentleman
from Texas (Mr. Green) which strikes section 418 from H.R. 743. Section
418 is the segment of the legislation that once and for all eliminates
the ``last day rule.'' So this rule will allow the House to choose
between two starkly different proposals.
One proposal, H.R. 743, gets rid of this loophole which could cost
Social Security almost $500 million. The other proposal, the gentleman
from Texas's (Mr. Green) amendment, allows this loophole to continue on
well into the future, thereby allowing the hemorrhaging of the Social
Security program to continue unabated.
I urge my colleagues on both sides of the aisle to support H. Res.
168, a rule that will allow the House to consider and ultimately pass
legislation that will improve the lives of millions of senior citizens
across the country by strengthening the long-term solvency of the
Social Security program.
Mr. Speaker, I reserve the balance of my time.
Mr. FROST. Mr. Speaker, I yield myself such time as I may consume.
(Mr. FROST asked and was given permission to revise and extend his
remarks.)
Mr. FROST. Mr. Speaker, the underlying bill, the Social Security
Protection Act, is largely noncontroversial. Its main provisions would
deny supplemental security income, SSI, to fugitive felons, make it
easier for seniors to get a lawyer for the complicated disability
application process, and reform the representative payee program so
that seniors are not defrauded. I support all of these reforms, Mr.
Speaker.
Unfortunately, this bill also has one very harmful provision. A
change in the government pension offset that would hurt teachers,
firefighters, police officers and other public servants around the
country including in my home State of Texas. Specifically, section 418
of this bill would prevent these hard-working public servants from
protecting their retirement benefits from the harsh impact of the
government pension offset.
Mr. Speaker, this issue is somewhat complicated, but it affects
thousands and thousands of dedicated teachers and other public
servants. So I am going to take a minute to explain how it works. Say
one was a teacher and their job has a pension plan that is not covered
under Social Security. If their spouse's job pays into Social Security,
then they are eligible for spousal or survivor's benefit if their
spouse dies. But under current law, the government pension offset
reduces or eliminates the spousal or survivor's benefits they deserve.
Fortunately, there is a provision in law right now that helps some
people in this situation. It allows one to protect their retirement by
switching jobs at the end of their career. This ``last day exemption,''
as it is called, has helped many teachers in Texas and other States
protect the Social Security benefits they deserve and that they need to
retire. However, section 418 of the underlying bill would eliminate
this exemption. Instead it would force teachers, police officers,
firefighters, and other public servants to work 5 additional years
before receiving full spousal benefits.
Mr. Speaker, that is no way to treat hard-working people who have
dedicated their entire lives to serving their communities and this
Nation. It hurts real people, especially women and lower-income
individuals. That is why it is opposed by teachers organizations like
the National Education Association and the American Federation of
Teachers.
Mr. Speaker, helping teachers and other public servants is not
difficult. In the Committee on Rules yesterday, Democrats offered
several amendments to fix the GPO problem. One option was offered by
the gentleman from Texas (Mr. Doggett). His amendment would protect
teachers' retirement by reducing the government pension offset from two
thirds to one third, and it would protect the Social Security trust
fund. Unfortunately, Republicans on the Committee on Rules refused to
allow the House to vote on the Doggett amendment. For that reason, I
urge Members to join me in opposing the previous question. If we defeat
the previous question, I will offer an amendment to the rule that will
allow the House to consider the gentleman from Texas's (Mr. Doggett)
amendment.
Another option, Mr. Speaker, was offered by the gentleman from Texas
(Mr. Green). His amendment, which will be considered on the floor today
as a Democratic substitute, would simply eliminate section 418 so that
teachers and other public servants can continue to protect their
retirement benefits. The substitute does not affect the rest of the
Social Security Protection Act.
So I urge my colleagues to vote ``yes'' on the Green amendment. That
way we can support Social Security
[[Page H2593]]
fairness for teachers, firefighters, and police officers.
Mr. Speaker, I reserve the balance of my time.
{time} 1030
Mr. FROST. Mr. Speaker, I yield 6 minutes to the gentleman from Texas
(Mr. Doggett).
Mr. DOGGETT. Mr. Speaker, what is happening here this morning
provides yet another example of the complete indifference of this House
Republican leadership to the retirement security of millions of older
Americans. Like their pseudo-prescription drug plan, which is not a
plan to help seniors but only a scheme to subsidize HMOs and deny
seniors their choice of doctors; like their persistence in seeking to
privatize and undermine our Social Security system and end the basic
guaranteed retirement upon which so many Americans have relied for the
last seven decades. Today, Republicans reject the pleas of
firefighters, of police officers, of teachers, and of the other public
servants who have asked this Congress for years to correct the
government pension offset that cuts into their retirement security
after they have served America, often at very low wages in very
critical jobs.
The Republicans' refusal to permit debate on the amendment that I
offered or the amendment that our colleague, the gentleman from
Louisiana (Mr. Jefferson) offered can only add to the cynicism of those
who have strived for so long to have their voices heard in this
Congress on this matter and who have yet to even get a vote on the
floor, much less passage, of this measure.
Almost 200 Members of this House, including a substantial number of
Republicans, have signed on as sponsors to a bill to repeal the
government pension offset. The gentleman from Florida (Mr. Shaw), the
gentleman from Texas (Mr. Culbertson), the gentleman from Kentucky (Mr.
Lewis), the gentleman from Florida (Mr. Foley), the gentleman from
Georgia (Mr. Norwood), and the gentleman from Michigan (Mr. Smith),
Republicans all, and proud of it, sponsored last session and again this
session a more modest proposal: Just cut the government pension offset
in half and provide half a loaf to those firefighters and teachers.
That proposal has been filed again this year as H.R. 75.
Now, for some unknown reason, though he is chairman of the
subcommittee with the sole jurisdiction over this matter, the gentleman
from Florida (Mr. Shaw) has never even bothered to ask for a hearing on
his very own proposal, much less ask for a vote on it, much less bring
it to the floor of this House.
So I acted in a very modest way, joined our colleague, the gentleman
from Florida (Mr. Shaw) in committee when this measure was forced back
to the committee for its first-ever vote, and we offered the bill for
the gentleman from Florida (Mr. Shaw).
We were prouder of it than he was. We asked for a vote from him but,
more importantly, for the millions of Americans, retirees, near
retirees, who serve the public, who are counting on these Republicans
to address their retirement security issues, we asked for a vote on
their proposal, written not in our words but in the Republican author's
words.
And what happened? Well, these Republicans who did not have the
slightest intention of ever advancing the proposal that they offered,
they all voted against their own proposal. And so in the Committee on
Rules, quite naturally, they said they do not want to bring these
amendments out here to the floor, because the Republicans will vote
against the very proposals that they have been writing to their
constituents about and that they are sponsoring.
This kind of total contradiction is what makes so many Americans
question whether this institution, this House of Representatives, is
the people's House and whether it is doing the people's business.
Mr. Speaker, it is very interesting that though he has been largely
in charge here for the last eight years, our colleague, the gentleman
from Texas, now the Republican majority leader, says he agrees with our
position, not their position. He wrote one constituent recently: ``I
strongly believe that the GPO is an unfair and misguided piece of
legislation. It undercuts the people who have spent their entire
working life paying into the Social Security system by denying them
their fair share of the hard-earned money they contributed. Married
couples should be able to share those benefits with their spouses.''
I could not have said it better myself.
But words will not solve the problems of these teachers,
firefighters, and police officers. This House can solve the problem.
This House can solve it by voting today to support the previous
question so we can get action on the floor. Words will not make any
difference to the people out there who are counting on us. Letters and
e-mails to constituents will not make any difference. A vote on the
House floor to correct this problem, to adopt verbatim the Republican
legislation and do it here on the floor of the House will respond to
the needs of people across this country.
Mr. Speaker, there are those who help us provide security, security
for our families, and they deserve a little retirement security. The
Republicans know how to fix this problem; they have war-gamed against
the enemy that undermines the retirement security. All they have to do
is pass the relevant provisions of the Shaw bill and we want to give
them that opportunity to pass a Republican piece of legislation. For
once, a piece of legislation that will strengthen retirement security
instead of undermining it like their prescription drug and privatized
Social Security schemes.
We ask them to join with us today in a key vote, the first vote on
the government pension offset by supporting the leadership of the
gentleman from Texas (Mr. Frost) on the previous question. We will
provide real retirement security coverage to the people of this
country, not just political coverage, which is apparently all the
authors of this legislation originally had in mind.
Mr. FROST. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I urge a ``no'' vote on the previous question. If the
previous question is defeated, I will offer an amendment to the rule
that will allow the House to consider the Doggett pension offset
amendment that was voted down in the Committee on Rules yesterday. The
Doggett amendment would reduce the government pension offset of Social
Security spousal and survivors benefits from two-thirds to one-third of
the government pension. It would hold the trust fund harmless for the
cost of the benefit improvement by making annual transfers from the
general funds to the Social Security Trust Fund.
Mr. Speaker, I ask unanimous consent to insert the text of the
previous question immediately prior to the vote.
The SPEAKER pro tempore (Mr. LaHood). Is there objection to the
request of the gentleman from Texas?
There was no objection.
Mr. FROST. Mr. Speaker, vote ``no'' on the previous question so we
can help all those who are unfairly penalized in their pension benefits
simply because one spouse is a government employee and one works for
the private sector. Let us support those who go into public service,
not punish them.
Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise in opposition to the
previous question on H.R. 743. I will vote no on this motion, I will
vote in favor of the Green amendment. The bill failed when it was first
brought to the floor earlier, because of a controversial provision
(section 418) and was an abuse of the suspension procedure, which is
intended for noncontroversial legislation.
Section 418, which modifies an exemption to the Social Security
Government Pension Offset (GPO) remains in the bill. The GPO is
designed to treat workers who are not covered by Social Security (some
federal, state and local government employees) the same as workers who
are covered by Social Security and therefore pay FICA taxes. Texas
teachers benefit from the use of the exemption. The Texas teachers'
pension system is uniquely suited to use of this exemption.
I have heard from many teachers in Houston who do not want me to
support H.R. 743. The National Education Association supports the Green
substitute that would strike Section 418 from the Social Security
Protection Act (H.R. 743).
NEA strongly opposes Section 418, which would prevent teachers from
protecting their retirement benefits from the harsh impacts of the
Government Pension Offset (GPO).
The GPO unfairly reduces the retirement benefits of public employees
who have dedicated their lives to serving their communities
[[Page H2594]]
and their country. Educators are shocked to learn that their decision
to enter the education profession--often at considerable financial
sacrifice--has caused them to lose benefits they counted on.
Instead of addressing what is clearly a response to a larger issue of
unfairness, we strongly believe that Congress should focus on remedying
the underlying problem by repealing the Government Pension Offset.
Addressing the broader issue would make provisions such as Section 418
unnecessary.
The House rejected H.R. 743 last month because of Section 418. Now,
supporters are bringing the bill back to the floor for yet another
vote. The Green substitute offers an important opportunity to strike
this controversial and unfair provision from an otherwise non-
controversial bill.
I urge my colleagues to vote against the previous question, and to
vote in support of the Green substitute. I strongly urge my colleagues
to reject H.R. 743 as currently written and instead to support the
Green substitute.
The material previously referred to by Mr. Frost is as follows:
Previous Question for H. Res. 168--Social Security Protection Act
In the resolution strike ``and (3)'' and insert the
following:
``(3) the further amendment printed in Sec. 2 of the
resolution if offered by Representative Doggett of Texas or
his designee, which shall be in order without intervention of
any point of order, shall be considered as read, and shall be
separately debatable for 60 minutes equally divided and
controlled by the proponent and an opponent; and (4)''.
Sec. 2. (Insert text of the amendment):
Amendment in the Nature of a Substitute to H.R. 743, as Reported
Offered by Mr. Doggett of Texas
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Social
Security Protection Act of 2003''.
(b) Table of Contents.--The table of contents is as
follows:
Sec. 1. Short title and table of contents.
TITLE I--PROTECTION OF BENEFICIARIES
Subtitle A--Representative Payees
Sec. 101. Authority to reissue benefits misused by organizational
representative payees.
Sec. 102. Oversight of representative payees.
Sec. 103. Disqualification from service as representative payee of
persons convicted of offenses resulting in imprisonment
for more than 1 year 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.
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 knowing
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. 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.
TITLE III--ATTORNEY FEE PAYMENT SYSTEM IMPROVEMENTS
Sec. 301. Cap on attorney assessments.
Sec. 302. Extension of attorney fee payment system to title XVI claims.
TITLE IV--MISCELLANEOUS AND TECHNICAL AMENDMENTS
Subtitle A--Amendments Relating to the Ticket to Work and Work
Incentives Improvement Act of 1999
Sec. 401. Application of demonstration authority sunset date to new
projects.
Sec. 402. Expansion of waiver authority available in connection with
demonstration projects providing for reductions in
disability insurance benefits based on earnings.
Sec. 403. Funding of demonstration projects provided for reductions in
disability insurance benefits based on earnings.
Sec. 404. Availability of Federal and State work incentive services to
additional individuals.
Sec. 405. Technical amendment clarifying treatment for certain purposes
of individual work plans under the Ticket to Work and
Self-Sufficiency Program.
Subtitle B--Miscellaneous Amendments
Sec. 411. Elimination of transcript requirement in remand cases fully
favorable to the claimant.
Sec. 412. Nonpayment of benefits upon removal from the United States.
Sec. 413. Reinstatement of certain reporting requirements.
Sec. 414. Clarification of definitions regarding certain survivor
benefits.
Sec. 415. Clarification respecting the FICA and SECA tax exemptions for
an individual whose earnings are subject to the laws of a
totalization agreement partner.
Sec. 416. Coverage under divided retirement system for public employees
in Kentucky.
Sec. 417. Compensation for the Social Security Advisory Board.
Sec. 418. 60-month period of employment requirement for application of
government pension offset exemption.
Sec. 419. Government pension offset reduced from two-thirds to one-
third of the government pension.
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.
TITLE I--PROTECTION OF BENEFICIARIES
Subtitle A--Representative Payees
SEC. 101. AUTHORITY TO REISSUE BENEFITS MISUSED BY
ORGANIZATIONAL REPRESENTATIVE PAYEES.
(a) Title II Amendments.--
(1) Reissuance of benefits.--Section 205(j)(5) of the
Social Security Act (42 U.S.C. 405(j)(5)) is amended by
inserting after the first sentence the following new
sentences: ``In any case in which a representative payee
that--
``(A) is not an individual (regardless of whether it is a
`qualified organization' within the meaning of paragraph
(4)(B)); or
``(B) is an individual who, for any month during a period
when misuse occurs, serves 15 or more individuals who are
beneficiaries under this title, title VIII, title XVI, or any
combination of such titles;
misuses all or part of an individual's benefit paid to such
representative payee, the Commissioner of Social Security
shall certify for payment to the beneficiary or the
beneficiary's alternative representative payee an amount
equal to the amount of such benefit so misused. The
provisions of this paragraph are subject to the limitations
of paragraph (7)(B).''.
(2) Misuse of benefits defined.--Section 205(j) of such Act
(42 U.S.C. 405(j)) is amended by adding at the end the
following new paragraph:
``(8) For purposes of this subsection, misuse of benefits
by a representative payee occurs in any case in which the
representative payee receives payment under this title for
the use and benefit of another person and converts such
payment, or any part thereof, to a use other than for the use
and benefit of such other person. The Commissioner of Social
Security may prescribe by regulation the meaning of the term
`use and benefit' for purposes of this paragraph.''.
(b) Title VIII Amendments.--
(1) Reissuance of benefits.--Section 807(i) of the Social
Security Act (42 U.S.C. 1007(i)) (as amended by section
209(b)(1) of this Act) is amended further by inserting after
the first sentence the following new sentences: ``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 new subsection:
``(j) Misuse of Benefits.--For purposes of this title,
misuse of benefits by a representative payee occurs in any
case in which the representative payee receives payment under
this title for the use and benefit of another
[[Page H2595]]
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 new sentences: ``In any case
in which a representative payee that--
``(i) is not an individual (regardless of whether it is a
`qualified organization' within the meaning of subparagraph
(D)(ii)); or
``(ii) is an individual who, for any month during a period
when misuse occurs, serves 15 or more individuals who are
beneficiaries under this title, title II, title VIII, or any
combination of such titles;
misuses all or part of an individual's benefit paid to the
representative payee, the Commissioner of Social Security
shall pay to the beneficiary or the beneficiary's alternative
representative payee an amount equal to the amount of the
benefit so misused. The provisions of this subparagraph are
subject to the limitations of subparagraph (H)(ii).''.
(2) Exclusion of reissued benefits from resources.--Section
1613(a) of such Act (42 U.S.C. 1382b(a)) is amended--
(A) in paragraph (12), by striking ``and'' at the end;
(B) in paragraph (13), by striking the period and inserting
``; and''; and
(C) by inserting after paragraph (13) the following new
paragraph:
``(14) for the 9-month period beginning after the month in
which received, any amount received by such individual (or
spouse) or any other person whose income is deemed to be
included in such individual's (or spouse's) income for
purposes of this title as restitution for benefits under this
title, title II, or title VIII that a representative payee of
such individual (or spouse) or such other person under
section 205(j), 807, or 1631(a)(2) has misused.''.
(3) Misuse of benefits defined.--Section 1631(a)(2)(A) of
such Act (42 U.S.C. 1383(a)(2)(A)) is amended by adding at
the end the following new clause:
``(iv) For purposes of this paragraph, misuse of benefits
by a representative payee occurs in any case in which the
representative payee receives payment under this title for
the use and benefit of another person and converts such
payment, or any part thereof, to a use other than for the use
and benefit of such other person. The Commissioner of Social
Security may prescribe by regulation the meaning of the term
`use and benefit' for purposes of this clause.''.
(d) Effective Date.--The amendments made by this section
shall apply to any case of benefit misuse by a representative
payee with respect to which the Commissioner makes the
determination of misuse on or after January 1, 1995.
SEC. 102. OVERSIGHT OF REPRESENTATIVE PAYEES.
(a) Certification of Bonding and Licensing Requirements for
Nongovernmental Organizational Representative Payees.--
(1) Title ii amendments.--Section 205(j) of the Social
Security Act (42 U.S.C. 405(j)) is amended--
(A) in paragraph (2)(C)(v), by striking ``a community-based
nonprofit social service agency licensed or bonded by the
State'' in subclause (I) and inserting ``a certified
community-based nonprofit social service agency (as defined
in paragraph (9))'';
(B) in paragraph (3)(F), by striking ``community-based
nonprofit social service agencies'' and inserting ``certified
community-based nonprofit social service agencies (as defined
in paragraph (9))'';
(C) in paragraph (4)(B), by striking ``any community-based
nonprofit social service agency which is bonded or licensed
in each State in which it serves as a representative payee''
and inserting ``any certified community-based nonprofit
social service agency (as defined in paragraph (9))''; and
(D) by adding after paragraph (8) (as added by section
101(a)(2) of this Act) the following new paragraph:
``(9) For purposes of this subsection, the term `certified
community-based nonprofit social service agency' means a
community-based nonprofit social service agency which is in
compliance with requirements, under regulations which shall
be prescribed by the Commissioner, for annual certification
to the Commissioner that it is bonded in accordance with
requirements specified by the Commissioner and that it is
licensed in each State in which it serves as a representative
payee (if licensing is available in such State) in accordance
with requirements specified by the Commissioner. Any such
annual certification shall include a copy of any independent
audit on such agency which may have been performed since the
previous certification.''.
(2) Title xvi amendments.--Section 1631(a)(2) of such Act
(42 U.S.C. 1383(a)(2)) is amended--
(A) in subparagraph (B)(vii), by striking ``a community-
based nonprofit social service agency licensed or bonded by
the State'' in subclause (I) and inserting ``a certified
community-based nonprofit social service agency (as defined
in subparagraph (I))'';
(B) in subparagraph (D)(ii)--
(i) by striking ``or any community-based'' and all that
follows through ``in accordance'' in subclause (II) and
inserting ``or any certified community-based nonprofit social
service agency (as defined in subparagraph (I)), if the
agency, in accordance'';
(ii) by redesignating items (aa) and (bb) as subclauses (I)
and (II), respectively (and adjusting the margination
accordingly); and
(iii) by striking ``subclause (II)(bb)'' and inserting
``subclause (II)''; and
(C) by adding at the end the following new subparagraph:
``(I) For purposes of this paragraph, the term `certified
community-based nonprofit social service agency' means a
community-based nonprofit social service agency which is in
compliance with requirements, under regulations which shall
be prescribed by the Commissioner, for annual certification
to the Commissioner that it is bonded in accordance with
requirements specified by the Commissioner and that it is
licensed in each State in which it serves as a representative
payee (if licensing is available in the State) in accordance
with requirements specified by the Commissioner. Any such
annual certification shall include a copy of any independent
audit on the agency which may have been performed since the
previous certification.''.
(3) Effective date.--The amendments made by this subsection
shall take effect on the first day of the thirteenth month
beginning after the date of 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 new subsection:
``(k) Periodic Onsite Review.--(1) In addition to such
other reviews of representative payees as the Commissioner of
Social Security may otherwise conduct, the Commissioner may
provide for the periodic onsite review of any person or
agency that receives the benefits payable under this title
(alone or in combination with benefits payable under title
II or title XVI) to another individual pursuant to the
appointment of such person or agency as a representative
payee under this section, section 205(j), or section
1631(a)(2) in any case in which--
``(A) the representative payee is a person who serves in
that capacity with respect to 15 or more such individuals; or
``(B) the representative payee is an agency that serves in
that capacity with respect to 50 or more such individuals.
``(2) Within 120 days after the end of each fiscal year,
the Commissioner shall submit to the Committee on Ways and
Means of the House of Representatives and the Committee on
Finance of the Senate a report on the results of periodic
onsite reviews conducted during the fiscal year pursuant to
paragraph (1) and of any other reviews of representative
payees conducted during such fiscal year in connection with
benefits under this
[[Page H2596]]
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 new
subclauses:
``(IV) obtain information concerning whether such person
has been convicted of any other offense under Federal or
State law which resulted in imprisonment for more than 1
year,
``(V) obtain information concerning whether such person is
a person described in section 202(x)(1)(A)(iv), and'';
(2) in subparagraph (B), by adding at the end the following
new clause:
``(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), by striking ``subparagraph
(B)(i)(IV),,'' and inserting ``subparagraph (B)(i)(VI)'' and
striking ``section 1631(a)(2)(B)(ii)(IV)'' and inserting
``section 1631(a)(2)(B)(ii)(VI)''; and
(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 new subclauses:
``(IV) such person has previously been convicted as
described in subparagraph (B)(i)(IV), unless the Commissioner
determines that such certification would be appropriate
notwithstanding such conviction, or
``(V) such person is person described in 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 new
subparagraphs:
``(D) obtain information concerning whether such person has
been convicted of any other offense under Federal or State
law which resulted in imprisonment for more than 1 year;
``(E) obtain information concerning whether such person is
a person described in section 804(a)(2); and'';
(2) in subsection (b), by adding at the end the following
new paragraph:
``(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 new subparagraphs:
``(D) such person has previously been convicted as
described in subsection (b)(2)(D), unless the Commissioner
determines that such payment would be appropriate
notwithstanding such conviction; or
``(E) such person is a person described in 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 new
subclauses:
``(IV) obtain information concerning whether the person has
been convicted of any other offense under Federal or State
law which resulted in imprisonment for more than 1 year;
``(V) obtain information concerning whether such person is
a person described in section 1611(e)(4)(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 new subclauses:
``(IV) the person has previously been convicted as
described in clause (ii)(IV) of this subparagraph, unless the
Commissioner determines that the payment would be appropriate
notwithstanding the conviction; or
``(V) such person is a person described in section
1611(e)(4)(A).''; and
(4) by adding at the end the following new clause:
``(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
[[Page H2597]]
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 the 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 new
paragraph:
``(7)(A) If the Commissioner of Social Security or a court
of competent jurisdiction determines that a representative
payee that is not a Federal, State, or local government
agency has misused all or part of an individual's benefit
that was paid to such representative payee under this
subsection, the representative payee shall be liable for the
amount misused, and such amount (to the extent not repaid by
the representative payee) shall be treated as an overpayment
of benefits under this title to the representative payee for
all purposes of this Act and related laws pertaining to the
recovery of such overpayments. Subject to subparagraph (B),
upon recovering all or any part of such amount, the
Commissioner shall certify an amount equal to the recovered
amount for payment to such individual or such individual's
alternative representative payee.
``(B) The total of the amount certified for payment to such
individual or such individual's alternative representative
payee under subparagraph (A) and the amount certified for
payment under paragraph (5) may not exceed the total benefit
amount misused by the representative payee with respect to
such individual.''.
(b) Title VIII Amendment.--Section 807 of such Act (as
amended by section 102(b)(2)) is amended further by adding at
the end the following new subsection:
``(l) Liability for Misused Amounts.--
``(1) In general.--If the Commissioner of Social Security
or a court of competent jurisdiction determines that a
representative payee that is not a Federal, State, or local
government agency has misused all or part of a qualified
individual's benefit that was paid to such representative
payee under this section, the representative payee shall be
liable for the amount misused, and such amount (to the extent
not repaid by the representative payee) shall be treated as
an overpayment of benefits under this title to the
representative payee for all purposes of this Act and related
laws pertaining to the recovery of such overpayments. Subject
to paragraph (2), upon recovering all or any part of such
amount, the Commissioner shall make payment of an amount
equal to the recovered amount to such qualified individual or
such qualified individual's alternative representative payee.
``(2) Limitation.--The total of the amount paid to such
individual or such individual's alternative representative
payee under paragraph (1) and the amount paid under
subsection (i) may not exceed the total benefit amount
misused by the representative payee with respect to such
individual.''.
(c) Title XVI Amendments.--Section 1631(a)(2) of such Act
(42 U.S.C. 1383(a)(2)) (as amended by section 102(b)(3)) is
amended further--
(1) in subparagraph (G)(i)(II), by striking ``section
205(j)(9)'' and inserting ``section 205(j)(10)''; and
(2) by striking subparagraph (H) and inserting the
following:
``(H)(i) If the Commissioner of Social Security or a court
of competent jurisdiction determines that a representative
payee that is not a Federal, State, or local government
agency has misused all or part of an individual's benefit
that was paid to the representative payee under this
paragraph, the representative payee shall be liable for the
amount misused, and the amount (to the extent not repaid by
the representative payee) shall be treated as an overpayment
of benefits under this title to the representative payee for
all purposes of this Act and related laws pertaining to the
recovery of the overpayments. Subject to clause (ii), upon
recovering all or any part of the amount, the Commissioner
shall make payment of an amount equal to the recovered amount
to such individual or such individual's alternative
representative payee.
``(ii) The total of the amount paid to such individual or
such individual's alternative representative payee under
clause (i) and the amount paid under subparagraph (E) may not
exceed the total benefit amount misused by the representative
payee with respect to such individual.''.
(d) Effective Date.--The amendments made by this section
shall apply to benefit misuse by a representative payee in
any case with respect to which the Commissioner of Social
Security or a court of competent jurisdiction makes the
determination of misuse after 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 new
subparagraph:
``(E) In any case in which the person described in
subparagraph (A) or (D) receiving payments on behalf of
another fails to submit a report required by the Commissioner
of Social Security under subparagraph (A) or (D), the
Commissioner may, after furnishing notice to such person and
the individual entitled to such payment, require that such
person appear in person at a field office of the Social
Security Administration serving the area in which the
individual resides in order to receive such payments.''.
(b) Title VIII Amendments.--Section 807(h) of such Act (42
U.S.C. 1007(h)) is amended--
(1) by redesignating paragraphs (3) and (4) as paragraphs
(4) and (5), respectively; and
(2) by inserting after paragraph (2) the following new
paragraph:
``(3) Authority to redirect delivery of benefit payments
when a representative payee fails to provide required
accounting.--In any case in which the person described in
paragraph (1) or (2) receiving benefit payments on behalf of
a qualified individual fails to submit a report required by
the Commissioner of Social Security under paragraph (1) or
(2), the Commissioner may, after furnishing notice to such
person and the qualified individual, require that such person
appear in person at a United States Government facility
designated by the Social Security Administration as serving
the area in which the qualified individual resides in order
to receive such benefit payments.''.
(c) Title XVI Amendment.--Section 1631(a)(2)(C) of such Act
(42 U.S.C. 1383(a)(2)(C)) is amended by adding at the end the
following new clause:
[[Page H2598]]
``(v) In any case in which the person described in clause
(i) or (iv) receiving payments on behalf of another fails to
submit a report required by the Commissioner of Social
Security under clause (i) or (iv), the Commissioner may,
after furnishing notice to the person and the individual
entitled to the payment, require that such person appear in
person at a field office of the Social Security
Administration serving the area in which the individual
resides in order to receive such payments.''.
(d) Effective Date.--The amendment made by this section
shall take effect 180 days after the date of the enactment of
this Act.
Subtitle B--Enforcement
SEC. 111. CIVIL MONETARY PENALTY AUTHORITY WITH RESPECT TO
WRONGFUL CONVERSIONS BY REPRESENTATIVE PAYEES.
(a) In General.--Section 1129(a) of the Social Security Act
(42 U.S.C. 1320a-8) is amended by adding at the end the
following new paragraph:
``(3) Any person (including an organization, agency, or
other entity) who, having received, while acting in the
capacity of a representative payee pursuant to section
205(j), 807, or 1631(a)(2), a payment under title II, VIII,
or XVI for the use and benefit of another individual,
converts such payment, or any part thereof, to a use that
such person knows or should know is other than for the use
and benefit of such other individual shall be subject to, in
addition to any other penalties that may be prescribed by
law, a civil money penalty of not more than $5,000 for each
such conversion. Such person shall also be subject to an
assessment, in lieu of damages sustained by the United States
resulting from the conversion, of not more than twice the
amount of any payments so converted.''.
(b) Effective Date.--The amendment made by this section
shall apply with respect to violations committed after the
date of the enactment of this Act.
TITLE II--PROGRAM PROTECTIONS
SEC. 201. CIVIL MONETARY PENALTY AUTHORITY WITH RESPECT TO
KNOWING 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 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 which, in the case of the
State of New Jersey, is a high misdemeanor under the laws of
such State, or
``(v) is violating a condition of probation or parole
imposed under Federal or State law.
In the case of an individual from whom such monthly benefits
have been withheld pursuant to clause (iv) or (v), the
Commissioner may, for good cause shown, pay such withheld
benefits to the individual.''; and
(5) in paragraph (3), by adding at the end the following
new subparagraph:
``(C) Notwithstanding the provisions of section 552a of
title 5, United States Code, or any other provision of
Federal or State law (other than section 6103 of the Internal
Revenue Code of 1986 and section 1106(c) of this Act), the
Commissioner shall furnish any Federal, State, or local law
enforcement officer, upon the written request of the officer,
with the current address, Social Security number, and
photograph (if applicable) of any beneficiary under this
title, if the officer furnishes the Commissioner with the
name of the beneficiary, and other identifying information as
reasonably required by the Commissioner to establish the
unique identity of the beneficiary, and notifies the
Commissioner that--
``(i) the beneficiary--
``(I) is described in clause (iv) or (v) of paragraph
(1)(A); and
``(II) has information that is necessary for the officer to
conduct the officer's official duties; and
``(ii) the location or apprehension of the beneficiary is
within the officer's official duties.''.
(b) Regulations.--Not later than the first day of the first
month that begins on or after the date that is 9 months after
the date of the enactment of this Act, the Commissioner of
Social Security shall promulgate regulations governing
payment by the Commissioner, for good cause shown, of
withheld benefits, pursuant to the last sentence of section
202(x)(1)(A) of the Social Security Act (as amended by
subsection (a)).
(c) Effective Date.--The amendments made by subsection (a)
shall take effect on the first day of the first month that
begins on or after the date that is 9 months after the date
of the 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
new paragraph:
[[Page H2599]]
``(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. PENALTY FOR CORRUPT OR FORCIBLE INTERFERENCE WITH
ADMINISTRATION OF SOCIAL SECURITY ACT.
Part A of title XI of the Social Security Act (42 U.S.C.
1301 et seq.) is amended by inserting after section 1129A the
following new section:
``ATTEMPTS TO INTERFERE WITH ADMINISTRATION OF SOCIAL SECURITY ACT
``Sec. 1129B. Whoever corruptly or by force or threats of
force (including any threatening letter or communication)
attempts to intimidate or impede any officer, employee, or
contractor of the Social Security Administration (including
any State employee of a disability determination service or
any other individual designated by the Commissioner of Social
Security) acting in an official capacity to carry out a duty
under this Act, or in any other way corruptly or by force or
threats of force (including any threatening letter or
communication) obstructs or impedes, or attempts to obstruct
or impede, the due administration of this Act, shall be fined
not more than $5,000, imprisoned not more than 3 years, or
both, except that if the offense is committed only by threats
of force, the person shall be fined not more than $3,000,
imprisoned not more than 1 year, or both. In this subsection,
the term `threats of force' means threats of harm to the
officer or employee of the United States or to a contractor
of the Social Security Administration, or to a member of the
family of such an officer or employee or contractor.''.
SEC. 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 new paragraph:
``(5) Upon conviction by a Federal court that an individual
has fraudulently concealed work activity during a period of
trial work from the Commissioner of Social Security by--
``(A) providing false information to the Commissioner of
Social Security as to whether the individual had earnings in
or for a particular period, or as to the amount thereof;
``(B) receiving disability insurance benefits under this
title while engaging in work activity under another identity,
including under another social security account number or a
number purporting to be a social security account number; or
``(C) taking other actions to conceal work activity with an
intent fraudulently to secure payment in a greater amount
than is due or when no payment is authorized,
no benefit shall be payable to such individual under this
title with respect to a period of disability for any month
before such conviction during which the individual rendered
services during the period of trial work with respect to
which the fraudulently concealed work activity occurred, and
amounts otherwise due under this title as restitution,
penalties, assessments, fines, or other repayments shall in
all cases be in addition to any amounts for which such
individual is liable as overpayments by reason of such
concealment.''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply with respect to work activity performed after the
date of the enactment of this Act.
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; and
(2) by inserting after subsection (a) the following new
subsection:
``(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 Social
Security Administration.
``(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 Social Security
Administration 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.''.
(b) Amendments to Title VIII.--Section 807(i) of such Act
(42 U.S.C. 1007(i)) is amended--
(1) by striking ``(i) Restitution.--In any case where'' and
inserting the following:
``(i) Restitution.--
``(1) In general.--In any case where''; and
(2) by adding at the end the following new paragraph:
``(2) Court order for restitution.--
``(A) 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
Social Security Administration.
``(B) 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
paragraph. In so applying such sections, the Social Security
Administration shall be considered the victim.
``(C) Stated reasons for not ordering restitution.--If the
court does not order restitution, or orders only partial
restitution, under this paragraph, the court shall state on
the record the reasons therefor.''.
(c) Amendments to Title XVI.--Section 1632 of such 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 new
subsection:
``(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 Social
Security Administration.
``(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 Social Security
Administration 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.''.
(d) Special Account for Receipt of Restitution Payments.--
Section 704(b) of such Act (42 U.S.C. 904(b)) is amended by
adding at the end the following new paragraph:
``(3)(A) Except as provided in subparagraph (B), amounts
received by the Social Security Administration pursuant to an
order of restitution under section 208(b), 807(i), or 1632(b)
[[Page H2600]]
shall be credited to a special fund established in the
Treasury of the United States for amounts so received or
recovered. The amounts so credited, to the extent and in the
amounts provided in advance in appropriations Acts, shall be
available to defray expenses incurred in carrying out titles
II, VIII, and XVI.
``(B) Subparagraph (A) shall not apply with respect to
amounts received in connection with misuse by a
representative payee (within the meaning of sections 205(j),
807, and 1631(a)(2)) of funds paid as benefits under
title II, VIII, or XVI. Such amounts received in
connection with misuse of funds paid as benefits under
title II shall be transferred to the Managing Trustee of
the Federal Old-Age and Survivors Insurance Trust Fund or
the Federal Disability Insurance Trust Fund, as determined
appropriate by the Commissioner of Social Security, and
such amounts shall be deposited by the Managing Trustee
into such Trust Fund. All other such amounts shall be
deposited by the Commissioner into the general fund of the
Treasury as miscellaneous receipts.''.
(e) Effective Date.--The amendments made by subsections
(a), (b), and (c) shall apply with respect to violations
occurring on or after the date of the enactment of this Act.
TITLE III--ATTORNEY FEE PAYMENT SYSTEM IMPROVEMENTS
SEC. 301. CAP ON ATTORNEY ASSESSMENTS.
(a) In General.--Section 206(d)(2)(A) of the Social
Security Act (42 U.S.C. 406(d)(2)(A)) is amended--
(1) by inserting ``, except that the maximum amount of the
assessment may not exceed the greater of $75 or the adjusted
amount as provided pursuant to the following two sentences''
after ``subparagraph (B)''; and
(2) by adding at the end the following new sentence: ``In
the case of any calendar year beginning after 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. EXTENSION OF ATTORNEY FEE PAYMENT SYSTEM TO TITLE
XVI CLAIMS.
(a) In General.--Section 1631(d)(2) of the Social Security
Act (42 U.S.C. 1383(d)(2)) is amended--
(1) in subparagraph (A), in the matter preceding clause
(i)--
(A) by striking ``section 206(a)'' and inserting ``section
206'';
(B) by striking ``(other than paragraph (4) thereof)'' and
inserting ``(other than subsections (a)(4) and (d)
thereof)''; and
(C) by striking ``paragraph (2) thereof'' and inserting
``such section'';
(2) in subparagraph (A)(i), by striking ``in subparagraphs
(A)(ii)(I) and (C)(i),'' and inserting ``in subparagraphs
(A)(ii)(I) and (D)(i) of subsection (a)(2)'', and by striking
``and'' at the end;
(3) by striking subparagraph (A)(ii) and inserting the
following:
``(ii) by substituting, in subsections (a)(2)(B) and
(b)(1)(B)(i), the phrase `section 1631(a)(7)(A) or the
requirements of due process of law' for the phrase
`subsection (g) or (h) of section 223';
``(iii) by substituting, in subsection (a)(2)(C)(i), the
phrase `under title II' for the phrase `under title XVI';
``(iv) by substituting, in subsection (b)(1)(A), the phrase
`pay the amount of such fee' for the phrase `certify the
amount of such fee for payment' and by striking, in
subsection (b)(1)(A), the phrase `or certified for payment';
and
``(v) by substituting, in subsection (b)(1)(B)(ii), the
phrase `deemed to be such amounts as determined before any
applicable reduction under section 1631(g), and reduced by
the amount of any reduction in benefits under this title or
title II made pursuant to section 1127(a)' for the phrase
`determined before any applicable reduction under section
1127(a))'.''; and
(4) by striking subparagraph (B) and inserting the
following new subparagraphs:
``(B) Subject to subparagraph (C), if the claimant is
determined to be entitled to past-due benefits under this
title and the person representing the claimant is an
attorney, the Commissioner of Social Security shall pay out
of such past-due benefits to such attorney an amount equal to
the lesser of--
``(i) so much of the maximum fee as does not exceed 25
percent of such past-due benefits (as determined before any
applicable reduction under section 1631(g) and reduced by the
amount of any reduction in benefits under this title or title
II pursuant to section 1127(a)), or
``(ii) the amount of past-due benefits available after any
applicable reductions under sections 1631(g) and 1127(a).
``(C)(i) Whenever a fee for services is required to be paid
to an attorney from a claimant's past-due benefits pursuant
to subparagraph (B), the Commissioner shall impose on the
attorney an assessment calculated in accordance with clause
(ii).
``(ii)(I) The amount of an assessment under clause (i)
shall be equal to the product obtained by multiplying the
amount of the representative's fee that would be required to
be paid by subparagraph (B) before the application of this
subparagraph, by the percentage specified in subclause (II),
except that the maximum amount of the assessment may not
exceed $75. 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 in the Treasury in a separate
fund created for this purpose.
``(vi) The assessments authorized under this subparagraph
shall be collected and available for obligation only to the
extent and in the amount provided in advance in
appropriations Acts. Amounts so appropriated are authorized
to remain available until expended, for administrative
expenses in carrying out this title and related laws.''.
(b) Effective Date.--
(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 certified or paid under
section 1631(d)(2) of the Social Security Act on or after the
first day of the first month that begins after 270 days after
the date of the enactment 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
on which the Commissioner of Social Security first implements
the amendments made by this section.
(c) Study Regarding Fee-Withholding for Non-Attorney
Representatives.--
(1) Study.--As soon as practicable after the date of the
enactment of this Act, the Comptroller General of the United
States shall undertake a study regarding fee-withholding for
non-attorney representatives representing claimants before
the Social Security Administration.
(2) Matters to be studied.--In conducting the study under
this subsection, the Comptroller General shall--
(A) compare the non-attorney representatives who seek fee
approval for representing claimants before the Social
Security Administration to attorney representatives who seek
such fee approval, with regard to--
(i) their training, qualifications, and competency,
(ii) the type and quality of services provided, and
(iii) the extent to which claimants are protected through
oversight of such representatives by the Social Security
Administration or other organizations, and
(B) consider the potential results of extending to non-
attorney representatives the fee withholding procedures that
apply under titles II and XVI of the Social Security Act for
the payment of attorney fees, including the effect on
claimants and program administration.
(3) Report.--Not later than 1 year after the date of the
enactment of this Act, the Comptroller General shall submit
to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate a
report detailing the results of the Comptroller General's
study conducted pursuant to this subsection.
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--
[[Page H2601]]
(1) in the first sentence of subsection (c), by striking
``conducted under subsection (a)'' and inserting ``initiated
under subsection (a) on or before December 17, 2004''; and
(2) in subsection (d)(2), by amending the first sentence to
read as follows: ``The authority to initiate projects under
the preceding provisions of this section shall terminate on
December 18, 2004.''.
SEC. 402. EXPANSION OF WAIVER AUTHORITY AVAILABLE IN
CONNECTION WITH DEMONSTRATION PROJECTS
PROVIDING FOR REDUCTIONS IN DISABILITY
INSURANCE BENEFITS BASED ON EARNINGS.
Section 302(c) of the Ticket to Work and Work Incentives
Improvement Act of 1999 (42 U.S.C. 434 note) is amended by
striking ``(42 U.S.C. 401 et seq.),'' and inserting ``(42
U.S.C. 401 et seq.) and the requirements of section 1148 of
such Act (42 U.S.C. 1320b-19) as they relate to the program
established under title II of such Act,''.
SEC. 403. FUNDING OF DEMONSTRATION PROJECTS PROVIDED FOR
REDUCTIONS IN DISABILITY INSURANCE BENEFITS
BASED ON EARNINGS.
Section 302(f) of the Ticket to Work and Work Incentives
Improvement Act of 1999 (42 U.S.C. 434 note) is amended to
read as follows:
``(f) Expenditures.--Administrative expenses for
demonstration projects under this section shall be paid from
funds available for the administration of title II or XVIII
of the Social Security Act, as appropriate. Benefits payable
to or on behalf of individuals by reason of participation in
projects under this section shall be made from the Federal
Disability Insurance Trust Fund and the Federal Old-Age and
Survivors Insurance Trust Fund, as determined appropriate by
the Commissioner of Social Security, and from the Federal
Hospital Insurance Trust Fund and the Federal Supplementary
Medical Insurance Trust Fund, as determined appropriate by
the Secretary of Health and Human Services, from funds
available for benefits under such title II or XVIII.''.
SEC. 404. AVAILABILITY OF FEDERAL AND STATE WORK INCENTIVE
SERVICES TO ADDITIONAL INDIVIDUALS.
(a) Federal Work Incentives Outreach Program.--
(1) In general.--Section 1149(c)(2) of the Social Security
Act (42 U.S.C. 1320b-20(c)(2)) is amended to read as follows:
``(2) Disabled beneficiary.--The term `disabled
beneficiary' means an individual--
``(A) who is a disabled beneficiary as defined in section
1148(k)(2) of this Act;
``(B) who is receiving a cash payment described in section
1616(a) of this Act or a supplementary payment described in
section 212(a)(3) of Public Law 93-66 (without regard to
whether such payment is paid by the Commissioner pursuant to
an agreement under section 1616(a) of this Act or under
section 212(b) of Public Law 93-66);
``(C) who, pursuant to section 1619(b) of this Act, is
considered to be receiving benefits under title XVI of this
Act; or
``(D) who is entitled to benefits under part A of title
XVIII of this Act by reason of the penultimate sentence of
section 226(b) of this Act.''.
(2) Effective date.--The amendment made by this subsection
shall apply with respect to grants, cooperative agreements,
or contracts entered into on or after the date of 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) is amended by adding at the end,
after and below subparagraph (E), the following new sentence:
``An individual work plan established pursuant to this
subsection shall be treated, for purposes of section
51(d)(6)(B)(i) of the Internal Revenue Code of 1986, as an
individualized written plan for employment under a State plan
for vocational rehabilitation services approved under the
Rehabilitation Act of 1973.''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect as if included in section 505 of the Ticket
to Work and Work Incentives Improvement Act of 1999 (Public
Law 106-170; 113 Stat. 1921).
Subtitle B--Miscellaneous Amendments
SEC. 411. ELIMINATION OF TRANSCRIPT REQUIREMENT IN REMAND
CASES FULLY FAVORABLE TO THE CLAIMANT.
(a) In General.--Section 205(g) of the Social Security Act
(42 U.S.C. 405(g)) is amended in the sixth sentence by
striking ``and a transcript'' and inserting ``and, in any
case in which the Commissioner has not made a decision fully
favorable to the individual, a transcript''.
(b) Effective Date.--The amendment made by this section
shall apply with respect to final determinations issued (upon
remand) on or after the date of the enactment of this Act.
SEC. 412. NONPAYMENT OF BENEFITS UPON REMOVAL FROM THE UNITED
STATES.
(a) In General.--Paragraphs (1) and (2) of section 202(n)
of the Social Security Act (42 U.S.C. 402(n)(1), (2)) are
each amended by striking ``or (1)(E)''.
(b) Effective Date.--The amendment made by this section to
section 202(n)(1) of the Social Security Act shall apply to
individuals with respect to whom the Commissioner of Social
Security receives a removal notice from the Attorney General
after the date of the enactment of this Act. The amendment
made by this section to section 202(n)(2) of the Social
Security Act shall apply with respect to removals occurring
after the date of the enactment of this Act.
SEC. 413. REINSTATEMENT OF CERTAIN REPORTING REQUIREMENTS.
Section 3003(a)(1) of the Federal Reports Elimination and
Sunset Act of 1995 (31 U.S.C. 1113 note) shall not apply to
any report required to be submitted under any of the
following provisions of law:
(1)(A) Section 201(c)(2) of the Social Security Act (42
U.S.C. 401(c)(2)).
(B) Section 1817(b)(2) of the Social Security Act (42
U.S.C. 1395i(b)(2)).
(C) Section 1841(b)(2) of the Social Security Act (42
U.S.C. 1395t(b)(2)).
(2)(A) Section 221(c)(3)(C) of the Social Security Act (42
U.S.C. 421(c)(3)(C)).
(B) Section 221(i)(3) of the Social Security Act (42 U.S.C.
421(i)(3)).
SEC. 414. CLARIFICATION OF DEFINITIONS REGARDING CERTAIN
SURVIVOR BENEFITS.
(a) Widows.--Section 216(c) of the Social Security Act (42
U.S.C. 416(c)) is amended--
(1) by redesignating subclauses (A) through (C) of clause
(6) as subclauses (i) through (iii), respectively;
(2) by redesignating clauses (1) through (6) as clauses (A)
through (F), respectively;
(3) in clause (E) (as redesignated), by inserting ``except
as provided in paragraph (2),'' before ``she was married'';
(4) by inserting ``(1)'' after ``(c)''; and
(5) by adding at the end the following new paragraph:
``(2) The requirements of paragraph (1)(E) in connection
with the surviving wife of an individual shall be treated as
satisfied if--
``(A) the individual had been married prior to the
individual's marriage to the surviving wife,
``(B) the prior wife was institutionalized during the
individual's marriage to the prior wife due to mental
incompetence or similar incapacity,
``(C) during the period of the prior wife's
institutionalization, the individual would have divorced the
prior wife and married the surviving wife, but the individual
did not do so because such divorce would have been unlawful,
by reason of the prior wife's institutionalization, under the
laws of the State in which the individual was domiciled at
the time (as determined based on evidence satisfactory to the
Commissioner of Social Security),
``(D) the prior wife continued to remain institutionalized
up to the time of her death, and
``(E) the individual married the surviving wife within 60
days after the prior wife's death.''.
(b) Widowers.--Section 216(g) of such Act (42 U.S.C.
416(g)) is amended--
(1) by redesignating subclauses (A) through (C) of clause
(6) as subclauses (i) through (iii), respectively;
(2) by redesignating clauses (1) through (6) as clauses (A)
through (F), respectively;
(3) in clause (E) (as redesignated), by inserting ``except
as provided in paragraph (2),'' before ``he was married'';
(4) by inserting ``(1)'' after ``(g)''; and
(5) by adding at the end the following new paragraph:
``(2) The requirements of paragraph (1)(E) in connection
with the surviving husband of an individual shall be treated
as satisfied if--
``(A) the individual had been married prior to the
individual's marriage to the surviving husband,
``(B) the prior husband was institutionalized during the
individual's marriage to the prior husband due to mental
incompetence or similar incapacity,
``(C) during the period of the prior husband's
institutionalization, the individual would have divorced the
prior husband and married the surviving husband, but the
individual did not do so because such divorce would have been
unlawful, by reason of the prior husband's
institutionalization, under the laws of the State in which
the individual was domiciled at the time (as determined
[[Page H2602]]
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.
(a) In General.--Section 218(d)(6)(C) of the Social
Security Act (42 U.S.C. 418(d)(6)(C)) is amended by inserting
``Kentucky,'' after ``Illinois,''.
(b) Effective Date.--The amendment made by subsection (a)
takes effect on January 1, 2003.
SEC. 417. COMPENSATION FOR THE SOCIAL SECURITY ADVISORY
BOARD.
(a) In General.--Subsection (f) of section 703 of the
Social Security Act (42 U.S.C. 903(f)) is amended to read as
follows:
``Compensation, Expenses, and Per Diem
``(f) A member of the Board shall, for each day (including
traveltime) during which the member is attending meetings or
conferences of the Board or otherwise engaged in the business
of the Board, be compensated at the daily rate of basic pay
for level IV of the Executive Schedule. 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. 60-MONTH PERIOD OF EMPLOYMENT REQUIREMENT FOR
APPLICATION OF GOVERNMENT PENSION OFFSET
EXEMPTION.
(a) Wife's Insurance Benefits.--Section 202(b)(4)(A) of the
Social Security Act (42 U.S.C. 402(b)(4)(A)) is amended by
striking ``if, on'' and inserting ``if, during any portion of
the last 60 months of such service ending with''.
(b) Husband's Insurance Benefits.--Section 202(c)(2)(A) of
such Act (42 U.S.C. 402(c)(2)(A)) is amended by striking
``if, on'' and inserting ``if, during any portion of the last
60 months of such service ending with''.
(c) Widow's Insurance Benefits.--Section 202(e)(7)(A) of
such Act (42 U.S.C. 402(e)(7)(A)) is amended by striking
``if, on'' and inserting ``if, during any portion of the last
60 months of such service ending with''.
(d) Widower's Insurance Benefits.--Section 202(f)(2)(A) of
such Act (42 U.S.C. 402(f)(2)(A)) is amended by striking
``if, on'' and inserting ``if, during any portion of the last
60 months of such service ending with''.
(e) Mother's and Father's Insurance Benefits.--Section
202(g)(4)(A) of the such Act (42 U.S.C. 402(g)(4)(A)) is
amended by striking ``if, on'' and inserting ```if, during
any portion of the last 60 months of such service ending
with''.
(f) Effective Date.--The amendments made by this section
shall apply with respect to applications for benefits under
title II of the Social Security Act filed on or after the
first day of the first month that begins after the date of
the 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(b)(4)(A), 202(c)(2)(A), 202(e)(7)(A), or
202(f)(2)(A) of the Social Security Act (in the matter
preceding clause (i) thereof)--
(1) if the last day of such service occurs before the end
of the 90-day period following the date of the enactment of
this Act, or
(2) in any case in which the last day of such service
occurs after the end of such 90-day period, such individual
performed such service during such 90-day period which
constituted ``employment'' as defined in section 210 of such
Act, and all such service subsequently performed by such
individual has constituted such ``employment''.
SEC. 419. GOVERNMENT PENSION OFFSET REDUCED FROM TWO-THIRDS
TO ONE-THIRD OF THE GOVERNMENT PENSION.
(a) Wife's Insurance Benefits.--Section 202(b)(4)(A) of the
Social Security Act (42 U.S.C. 402(b)(4)(A)) is amended by
striking ``two-thirds'' and inserting ``one-third''.
(b) Husband's Insurance Benefits.--Section 202(c)(2)(A) of
such Act (42 U.S.C. 402(b)(2)(A)) is amended by striking
``two-thirds'' and inserting ``one-third''.
(c) Widow's Insurance Benefits.--Section 202(e)(7)(A) of
such Act (42 U.S.C. 402(e)(7)(A)) is amended by striking
``two-thirds'' and inserting ``one-third''.
(d) Widower's Insurance Benefits.--Section 202(f)(2)(A) of
such Act (42 U.S.C. 402(f)(2)(A)) is amended by striking
``two-thirds'' and inserting ``one-third''.
(e) Mother's and Father's Insurance Benefits.--Section
202(g)(4)(A) of such Act (42 U.S.C. 402(g)(4)(A)) is amended
by striking ``two-thirds'' and inserting ``one-third''.
(f) Effective Date.--The amendments made by this section
shall apply with respect to benefits for months ending after
the date of the enactment of this Act.
(g) Annual Reimbursement of Trust Fund.--There are
authorized to be appropriated from time to time to the
Federal Old-Age and Survivors Insurance Trust Fund such sums
as are necessary for any fiscal year, on account of--
(1) amounts paid or to be paid from such Trust Fund under
title II of the Social Security Act solely by reason of the
amendments made by this section,
(2) the additional administrative expenses resulting or
expected to result therefrom, and
(3) any loss in interest to such Trust Fund resulting from
the payment of such amounts,
in order to place such Trust Fund in the same position at the
end of such fiscal year as the position in which it would
have been if the preceding provisions of this section had not
been enacted.
Subtitle C--Technical Amendments
SEC. 421. TECHNICAL CORRECTION RELATING TO RESPONSIBLE AGENCY
HEAD.
Section 1143 of the Social Security Act (42 U.S.C. 1320b-
13) is amended--
(1) by striking ``Secretary'' the first place it appears
and inserting ``Commissioner of Social Security''; and
(2) by striking ``Secretary'' each subsequent place it
appears and inserting ``Commissioner''.
SEC. 422. TECHNICAL CORRECTION RELATING TO RETIREMENT
BENEFITS OF MINISTERS.
(a) In General.--Section 211(a)(7) of the Social Security
Act (42 U.S.C. 411(a)(7)) is amended by inserting ``, but
shall not include in any such net earnings from self-
employment the rental value of any parsonage or any parsonage
allowance (whether or not excluded under section 107 of the
Internal Revenue Code of 1986) provided after the individual
retires, or any other retirement benefit received by such
individual from a church plan (as defined in section 414(e)
of such Code) after the individual retires'' before the
semicolon.
(b) Effective Date.--The amendment made by this section
shall apply to years beginning before, on, or after December
31, 1994.
SEC. 423. TECHNICAL CORRECTIONS RELATING TO DOMESTIC
EMPLOYMENT.
(a) Amendment to Internal Revenue Code.--Section
3121(a)(7)(B) of the Internal Revenue Code of 1986 is amended
by striking ``described in subsection (g)(5)'' and
inserting ``on a farm operated for profit''.
(b) Amendment to Social Security Act.--Section 209(a)(6)(B)
of the Social Security Act (42 U.S.C. 409(a)(6)(B)) is
amended by striking ``described in section 210(f)(5)'' and
inserting ``on a farm operated for profit''.
(c) Conforming Amendment.--Section 3121(g)(5) of such Code
and section 210(f)(5) of such Act (42 U.S.C. 410(f)(5)) are
amended by striking ``or is domestic service in a private
home of the employer''.
SEC. 424. TECHNICAL CORRECTIONS OF OUTDATED REFERENCES.
(a) Correction of Terminology and Citations Respecting
Removal From the United States.--Section 202(n) of the Social
Security Act (42 U.S.C. 402(n)) (as amended by section 412)
is amended further--
(1) by striking ``deportation'' each place it appears and
inserting ``removal'';
(2) by striking ``deported'' each place it appears and
inserting ``removed'';
(3) in paragraph (1) (in the matter preceding subparagraph
(A)), by striking ``under section 241(a) (other than under
paragraph (1)(C) thereof)'' and inserting ``under section
237(a) (other than paragraph (1)(C) thereof) or
212(a)(6)(A)'';
(4) in paragraph (2), by striking ``under any of the
paragraphs of section 241(a) of the Immigration and
Nationality Act (other than under paragraph (1)(C) thereof)''
and inserting ``under any of the paragraphs of section 237(a)
of the Immigration and Nationality Act (other than paragraph
(1)(C) thereof) or under section 212(a)(6)(A) of such Act'';
(5) in paragraph (3)--
(A) by striking ``paragraph (19) of section 241(a)'' and
inserting ``subparagraph (D) of section 237(a)(4)''; and
(B) by striking ``paragraph (19)'' and inserting
``subparagraph (D)''; and
(6) in the heading, by striking ``Deportation'' and
inserting ``Removal''.
(b) Correction of Citation Respecting the Tax Deduction
Relating to Health Insurance Costs of Self-Employed
Individuals.--Section 211(a)(15) of such Act (42 U.S.C.
411(a)(15)) is amended by striking ``section 162(m)'' and
inserting ``section 162(l)''.
(c) Elimination of Reference to Obsolete 20-Day
Agricultural Work Test.--Section 3102(a) of the Internal
Revenue Code of 1986 is amended by striking ``and the
employee has not performed agricultural labor for the
employer on 20 days or more in the calendar year for cash
remuneration computed on a time basis''.
[[Page H2603]]
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''.
Mr. FROST. Mr. Speaker, I yield back the balance of my time.
Mr. LINDER. Mr. Speaker, I yield back the balance of my time, and I
move the previous question on the resolution.
The SPEAKER pro tempore. The question is on ordering the previous
question.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Mr. FROST. Mr. Speaker, on that, I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8(a)(2)(f) of rule XX,
further proceedings on this question will be postponed.
____________________