[Congressional Record Volume 149, Number 53 (Wednesday, April 2, 2003)]
[House]
[Pages H2625-H2669]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              {time}  1215
                 SOCIAL SECURITY PROTECTION ACT OF 2003

  Mr. SHAW. Mr. Speaker, pursuant to House Resolution 168, I call up 
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, and ask for its immediate consideration.
  The Clerk read the title of the bill.
  The SPEAKER pro tempore (Mr. Linder). Pursuant to House Resolution 
168, the bill is considered read for amendment.
  The text of H.R. 743 is as follows:

                                H.R. 743

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

[[Page H2626]]

     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.

                    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)) is amended by inserting 
     after the first sentence the following new sentences: ``In 
     any case in which a representative payee that--
       ``(1) is not an individual; or
       ``(2) is an individual who, for any month during a period 
     when misuse occurs, serves 15 or more individuals who are 
     beneficiaries under this title, title II, title XVI, or any 
     combination of such titles;

     misuses all or part of an individual's benefit paid to such 
     representative payee, the Commissioner of Social Security 
     shall pay to the beneficiary or the beneficiary's alternative 
     representative payee an amount equal to the amount of such 
     benefit so misused. The provisions of this paragraph are 
     subject to the limitations of subsection (l)(2).''.
       (2) Misuse of benefits defined.--Section 807 of such Act 
     (42 U.S.C. 1007) is amended by adding at the end the 
     following new subsection:
       ``(j) Misuse of Benefits.--For purposes of this title, 
     misuse of benefits by a representative payee occurs in any 
     case in which the representative payee receives payment under 
     this title for the use and benefit of another 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

[[Page H2627]]

     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 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.

[[Page H2628]]

       ``(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 (C)(i)(II), by striking ``subparagraph 
     (B)(i)(IV),,'' and inserting ``subparagraph (B)(i)(VI)'' and 
     striking ``section 1631(a)(2)(B)(ii)(IV)'' and inserting 
     ``section 1631(a)(2)(B)(ii)(VI)''; and
       (3) in subparagraph (C)(i)--
       (A) by striking ``or'' at the end of subclause (II);
       (B) by striking the period at the end of subclause (III) 
     and inserting a comma; and
       (C) by adding at the end the following new subclauses:
       ``(IV) such person has previously been convicted as 
     described in subparagraph (B)(i)(IV), unless the Commissioner 
     determines that such certification would be appropriate 
     notwithstanding such conviction, or
       ``(V) such person is person described in 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''; and
       (2) in subsection (d)(1)--
       (A) by striking ``or'' at the end of subparagraph (B);
       (B) by striking the period at the end of subparagraph (C) 
     and inserting a semicolon; and
       (C) by adding at the end the following new subparagraphs:
       ``(D) such person has previously been convicted as 
     described in subsection (b)(2)(D), unless the Commissioner 
     determines that such payment would be appropriate 
     notwithstanding such conviction; or
       ``(E) such person is a person described in 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)''; and
       (3) in clause (iii)--
       (A) by striking ``or'' at the end of subclause (II);
       (B) by striking the period at the end of subclause (III) 
     and inserting a semicolon; and
       (C) by adding at the end the following new subclauses:
       ``(IV) the person has previously been convicted as 
     described in clause (ii)(IV) of this subparagraph, unless the 
     Commissioner determines that the payment would be appropriate 
     notwithstanding the conviction; or
       ``(V) such person is a person described in section 
     1611(e)(4)(A).''.
       (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

[[Page H2629]]

     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:
       ``(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,


[[Page H2630]]


     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, and 
     Fugitives'';
       (2) in paragraph (1)(A)(ii)(IV), by striking ``or'' at the 
     end;
       (3) in paragraph (1)(A)(iii), by striking the period at the 
     end and inserting a comma;
       (4) by inserting after paragraph (1)(A)(iii) the following:
       ``(iv) is fleeing to avoid prosecution, or custody or 
     confinement after conviction, under the laws of the place 
     from which the person flees, for a crime, or an attempt to 
     commit a crime, which is a felony under the laws of the place 
     from which the person flees, or which, in the case of the 
     State of New Jersey, is a high misdemeanor under the laws of 
     such State, or
       ``(v) is violating a condition of probation or parole 
     imposed under Federal or State law.
     In the case of an individual from whom such monthly benefits 
     have been withheld pursuant to clause (iv), the Commissioner 
     may, for good cause shown, pay such withheld benefits to the 
     individual.''; and
       (5) in paragraph (3), by adding at the end the following 
     new subparagraph:
       ``(C) Notwithstanding the provisions of section 552a of 
     title 5, United States Code, or any other provision of 
     Federal or State law (other than section 6103 of the Internal 
     Revenue Code of 1986 and section 1106(c) of this Act), the 
     Commissioner shall furnish any Federal, State, or local law 
     enforcement officer, upon the written request of the officer, 
     with the current address, Social Security number, and 
     photograph (if applicable) of any beneficiary under this 
     title, if the officer furnishes the Commissioner with the 
     name of the beneficiary, and other identifying information as 
     reasonably required by the Commissioner to establish the 
     unique identity of the beneficiary, and notifies the 
     Commissioner that--
       ``(i) the beneficiary--
       ``(I) is described in clause (iv) or (v) of paragraph 
     (1)(A); and
       ``(II) has information that is necessary for the officer to 
     conduct the officer's official duties; and
       ``(ii) the location or apprehension of the beneficiary is 
     within the officer's official duties.''.
       (b) Regulations.--Not later than the first day of the first 
     month that begins on or after the date that is 9 months after 
     the date of 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:
       ``(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

[[Page H2631]]

     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) 
     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) 
     and (b) 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 date of the 
     enactment of the Social Security Program Protection Act of 
     2003, the dollar amount specified in the preceding sentence 
     (including a previously adjusted amount) shall be adjusted 
     annually under the procedures used to adjust benefit amounts 
     under section 215(i)(2)(A)(ii), except such adjustment shall 
     be based on the higher of $75 or the previously adjusted 
     amount that would have been in effect for December of the 
     preceding year, but for the rounding of such amount pursuant 
     to the following sentence. Any amount so adjusted that is not 
     a multiple of $10 shall be rounded to the next lowest 
     multiple of $10, but in no case less than $75.''.
       (b) Effective Date.--The 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

[[Page H2632]]

       ``(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 date of the enactment of the Social Security Program 
     Protection Act of 2003, the dollar amount specified in the 
     preceding sentence (including a previously adjusted amount) 
     shall be adjusted annually under the procedures used to 
     adjust benefit amounts under section 215(i)(2)(A)(ii), except 
     such adjustment shall be based on the higher of $75 or the 
     previously adjusted amount that would have been in effect for 
     December of the preceding year, but for the rounding of such 
     amount pursuant to the following sentence. Any amount so 
     adjusted that is not a multiple of $10 shall be rounded to 
     the next lowest multiple of $10, but in no case less than 
     $75.
       ``(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 3 years after the date 
     of the enactment of this Act.
       (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--
       (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

[[Page H2633]]

     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 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 for each day during 
     which the member is engaged in performing a function of the 
     Board. While serving on business of the Board away from their 
     homes or regular places of business, members may be allowed 
     travel expenses, including per diem in lieu of subsistence, 
     as authorized by section 5703 of title 5, United States Code, 
     for persons in the Government employed intermittently.''.
       (b) Effective Date.--The amendment made by this section 
     shall be effective as of January 1, 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 the last day she was employed by such 
     entity'' and inserting ``if, throughout the period beginning 
     with the period of 60 calendar months preceding the last day 
     she was employed by such entity and ending with such last 
     day''.
       (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 the last day he was employed by such entity'' and 
     inserting ``if, throughout the period beginning with the 
     period of 60 calendar months preceding the last day he was 
     employed by such entity and ending with such last day''.
       (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 the last day she was employed by such entity'' and 
     inserting ``if, throughout the period beginning with the 
     period of 60 calendar months preceding the last day she was 
     employed by such entity and ending with such last day''.
       (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 the last day he was employed by such entity'' and 
     inserting ``if, throughout the period beginning with the 
     period of 60 calendar months preceding the last day he was 
     employed by such entity and ending with such last day''.
       (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 the last day the individual was 
     employed by such entity'' and inserting ``if, throughout the 
     period beginning with the period of 60 calendar months 
     preceding the last day the individual was employed by such 
     entity and ending with such last day''.
       (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

[[Page H2634]]

     210 of such Act, and all such service subsequently performed 
     by such individual has constituted such ``employment''.

                    Subtitle C--Technical Amendments

     SEC. 421. TECHNICAL CORRECTION RELATING TO RESPONSIBLE AGENCY 
                   HEAD.

       Section 1143 of the Social Security Act (42 U.S.C. 1320b-
     13) is amended--
       (1) by striking ``Secretary'' the first place it appears 
     and inserting ``Commissioner of Social Security''; and
       (2) by striking ``Secretary'' each subsequent place it 
     appears and inserting ``Commissioner''.

     SEC. 422. TECHNICAL CORRECTION RELATING TO RETIREMENT 
                   BENEFITS OF MINISTERS.

       (a) In General.--Section 211(a)(7) of the Social Security 
     Act (42 U.S.C. 411(a)(7)) is amended by inserting ``, but 
     shall not include in any such net earnings from self-
     employment the rental value of any parsonage or any parsonage 
     allowance (whether or not excluded under section 107 of the 
     Internal Revenue Code of 1986) provided after the individual 
     retires, or any other retirement benefit received by such 
     individual from a church plan (as defined in section 414(e) 
     of such Code) after the individual retires'' before the 
     semicolon.
       (b) Effective Date.--The amendment made by this section 
     shall apply to years beginning before, on, or after December 
     31, 1994.

     SEC. 423. TECHNICAL CORRECTIONS RELATING TO DOMESTIC 
                   EMPLOYMENT.

       (a) Amendment to Internal Revenue Code.--Section 
     3121(a)(7)(B) of the Internal Revenue Code of 1986 is amended 
     by striking ``described in subsection (g)(5)'' and inserting 
     ``on a farm operated for profit''.
       (b) Amendment to Social Security Act.--Section 209(a)(6)(B) 
     of the Social Security Act (42 U.S.C. 409(a)(6)(B)) is 
     amended by striking ``described in section 210(f)(5)'' and 
     inserting ``on a farm operated for profit''.
       (c) Conforming Amendment.--Section 3121(g)(5) of such Code 
     and section 210(f)(5) of such Act (42 U.S.C. 410(f)(5)) are 
     amended by striking ``or is domestic service in a private 
     home of the employer''.

     SEC. 424. TECHNICAL CORRECTIONS OF OUTDATED REFERENCES.

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

     SEC. 425. TECHNICAL CORRECTION RESPECTING SELF-EMPLOYMENT 
                   INCOME IN COMMUNITY PROPERTY STATES.

       (a) Social Security Act Amendment.--Section 211(a)(5)(A) of 
     the Social Security Act (42 U.S.C. 411(a)(5)(A)) is amended 
     by striking ``all of the gross income'' and all that follows 
     and inserting ``the gross income and deductions attributable 
     to such trade or business shall be treated as the gross 
     income and deductions of the spouse carrying on such trade or 
     business or, if such trade or business is jointly operated, 
     treated as the gross income and deductions of each spouse on 
     the basis of their respective distributive share of the gross 
     income and deductions;''.
       (b) Internal Revenue Code of 1986 Amendment.--Section 
     1402(a)(5)(A) of the Internal Revenue Code of 1986 is amended 
     by striking ``all of the gross income'' and all that follows 
     and inserting ``the gross income and deductions attributable 
     to such trade or business shall be treated as the gross 
     income and deductions of the spouse carrying on such trade or 
     business or, if such trade or business is jointly operated, 
     treated as the gross income and deductions of each spouse on 
     the basis of their respective distributive share of the gross 
     income and deductions; and''.

  The SPEAKER pro tempore. The amendment printed in the bill is 
adopted.
  The text of H.R. 743, as amended, is as follows:

                                H.R. 743

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Social 
     Security Protection Act of 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.

                    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.

[[Page H2635]]

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 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

[[Page H2636]]

     Committee on Ways and Means of the House of Representatives 
     and the Committee on Finance of the Senate a report on the 
     results of periodic onsite reviews conducted during the 
     fiscal year pursuant to subparagraph (A) and of any other 
     reviews of representative payees conducted during such fiscal 
     year in connection with benefits under this title. Each such 
     report shall describe in detail all problems identified in 
     such reviews and any corrective action taken or planned to be 
     taken to correct such problems, and shall include--
       ``(i) the number of such reviews;
       ``(ii) the results of such reviews;
       ``(iii) the number of cases in which the representative 
     payee was changed and why;
       ``(iv) the number of cases involving the exercise of 
     expedited, targeted oversight of the representative payee by 
     the Commissioner conducted upon receipt of an allegation of 
     misuse of funds, failure to pay a vendor, or a similar 
     irregularity;
       ``(v) the number of cases discovered in which there was a 
     misuse of funds;
       ``(vi) how any such cases of misuse of funds were dealt 
     with by the Commissioner;
       ``(vii) the final disposition of such cases of misuse of 
     funds, including any criminal penalties imposed; and
       ``(viii) such other information as the Commissioner deems 
     appropriate.''.
       (2) Title viii amendment.--Section 807 of such Act (as 
     amended by section 101(b)(2) of this Act) is amended further 
     by adding at the end the following new subsection:
       ``(k) Periodic Onsite Review.--(1) In addition to such 
     other reviews of representative payees as the Commissioner of 
     Social Security may otherwise conduct, the Commissioner may 
     provide for the periodic onsite review of any person or 
     agency that receives the benefits payable under this title 
     (alone or in combination with benefits payable under title 
     II or title XVI) to another individual pursuant to the 
     appointment of such person or agency as a representative 
     payee under this section, section 205(j), or section 
     1631(a)(2) in any case in which--
       ``(A) the representative payee is a person who serves in 
     that capacity with respect to 15 or more such individuals; or
       ``(B) the representative payee is an agency that serves in 
     that capacity with respect to 50 or more such individuals.
       ``(2) Within 120 days after the end of each fiscal year, 
     the Commissioner shall submit to the Committee on Ways and 
     Means of the House of Representatives and the Committee on 
     Finance of the Senate a report on the results of periodic 
     onsite reviews conducted during the fiscal year pursuant to 
     paragraph (1) and of any other reviews of representative 
     payees conducted during such fiscal year in connection with 
     benefits under this title. Each such report shall describe in 
     detail all problems identified in such reviews and any 
     corrective action taken or planned to be taken to correct 
     such problems, and shall include--
       ``(A) the number of such reviews;
       ``(B) the results of such reviews;
       ``(C) the number of cases in which the representative payee 
     was changed and why;
       ``(D) the number of cases involving the exercise of 
     expedited, targeted oversight of the representative payee by 
     the Commissioner conducted upon receipt of an allegation of 
     misuse of funds, failure to pay a vendor, or a similar 
     irregularity;
       ``(E) the number of cases discovered in which there was a 
     misuse of funds;
       ``(F) how any such cases of misuse of funds were dealt with 
     by the Commissioner;
       ``(G) the final disposition of such cases of misuse of 
     funds, including any criminal penalties imposed; and
       ``(H) such other information as the Commissioner deems 
     appropriate.''.
       (3) Title xvi amendment.--Section 1631(a)(2)(G) of such Act 
     (42 U.S.C. 1383(a)(2)(G)) is amended to read as follows:
       ``(G)(i) In addition to such other reviews of 
     representative payees as the Commissioner of Social Security 
     may otherwise conduct, the Commissioner shall provide for the 
     periodic onsite review of any person or agency that receives 
     the benefits payable under this title (alone or in 
     combination with benefits payable under title II or title 
     VIII) to another individual pursuant to the appointment of 
     the person or agency as a representative payee under this 
     paragraph, section 205(j), or section 807 in any case in 
     which--
       ``(I) the representative payee is a person who serves in 
     that capacity with respect to 15 or more such individuals;
       ``(II) the representative payee is a certified community-
     based nonprofit social service agency (as defined in 
     subparagraph (I) of this paragraph or section 205(j)(9)); or
       ``(III) the representative payee is an agency (other than 
     an agency described in subclause (II)) that serves in that 
     capacity with respect to 50 or more such individuals.
       ``(ii) Within 120 days after the end of each fiscal year, 
     the Commissioner shall submit to the Committee on Ways and 
     Means of the House of Representatives and the Committee on 
     Finance of the Senate a report on the results of periodic 
     onsite reviews conducted during the fiscal year pursuant to 
     clause (i) and of any other reviews of representative payees 
     conducted during such fiscal year in connection with benefits 
     under this title. Each such report shall describe in detail 
     all problems identified in the reviews and any corrective 
     action taken or planned to be taken to correct the problems, 
     and shall include--
       ``(I) the number of the reviews;
       ``(II) the results of such reviews;
       ``(III) the number of cases in which the representative 
     payee was changed and why;
       ``(IV) the number of cases involving the exercise of 
     expedited, targeted oversight of the representative payee by 
     the Commissioner conducted upon receipt of an allegation of 
     misuse of funds, failure to pay a vendor, or a similar 
     irregularity;
       ``(V) the number of cases discovered in which there was a 
     misuse of funds;
       ``(VI) how any such cases of misuse of funds were dealt 
     with by the Commissioner;
       ``(VII) the final disposition of such cases of misuse of 
     funds, including any criminal penalties imposed; and
       ``(VIII) such other information as the Commissioner deems 
     appropriate.''.

     SEC. 103. DISQUALIFICATION FROM SERVICE AS REPRESENTATIVE 
                   PAYEE OF PERSONS CONVICTED OF OFFENSES 
                   RESULTING IN IMPRISONMENT FOR MORE THAN 1 YEAR 
                   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

[[Page H2637]]

       ``(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 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

[[Page H2638]]

     person at a field office of the Social Security 
     Administration serving the area in which the individual 
     resides in order to receive such payments.''.
       (b) Title VIII Amendments.--Section 807(h) of such Act (42 
     U.S.C. 1007(h)) is amended--
       (1) by redesignating paragraphs (3) and (4) as paragraphs 
     (4) and (5), respectively; and
       (2) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) Authority to redirect delivery of benefit payments 
     when a representative payee fails to provide required 
     accounting.--In any case in which the person described in 
     paragraph (1) or (2) receiving benefit payments on behalf of 
     a qualified individual fails to submit a report required by 
     the Commissioner of Social Security under paragraph (1) or 
     (2), the Commissioner may, after furnishing notice to such 
     person and the qualified individual, require that such person 
     appear in person at a United States Government facility 
     designated by the Social Security Administration as serving 
     the area in which the qualified individual resides in order 
     to receive such benefit payments.''.
       (c) Title XVI Amendment.--Section 1631(a)(2)(C) of such Act 
     (42 U.S.C. 1383(a)(2)(C)) is amended by adding at the end the 
     following new clause:
       ``(v) In any case in which the person described in clause 
     (i) or (iv) receiving payments on behalf of another fails to 
     submit a report required by the Commissioner of Social 
     Security under clause (i) or (iv), the Commissioner may, 
     after furnishing notice to the person and the individual 
     entitled to the payment, require that such person appear in 
     person at a field office of the Social Security 
     Administration serving the area in which the individual 
     resides in order to receive such payments.''.
       (d) Effective Date.--The amendment made by this section 
     shall take effect 180 days after the date of 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

[[Page H2639]]

     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:
       ``(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) 
     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

[[Page H2640]]

     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--
       (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

[[Page H2641]]

     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 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''.

[[Page H2642]]

     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''.

                    Subtitle C--Technical Amendments

     SEC. 421. TECHNICAL CORRECTION RELATING TO RESPONSIBLE AGENCY 
                   HEAD.

       Section 1143 of the Social Security Act (42 U.S.C. 1320b-
     13) is amended--
       (1) by striking ``Secretary'' the first place it appears 
     and inserting ``Commissioner of Social Security''; and
       (2) by striking ``Secretary'' each subsequent place it 
     appears and inserting ``Commissioner''.

     SEC. 422. TECHNICAL CORRECTION RELATING TO RETIREMENT 
                   BENEFITS OF MINISTERS.

       (a) In General.--Section 211(a)(7) of the Social Security 
     Act (42 U.S.C. 411(a)(7)) is amended by inserting ``, but 
     shall not include in any such net earnings from self-
     employment the rental value of any parsonage or any parsonage 
     allowance (whether or not excluded under section 107 of the 
     Internal Revenue Code of 1986) provided after the individual 
     retires, or any other retirement benefit received by such 
     individual from a church plan (as defined in section 414(e) 
     of such Code) after the individual retires'' before the 
     semicolon.
       (b) Effective Date.--The amendment made by this section 
     shall apply to years beginning before, on, or after December 
     31, 1994.

     SEC. 423. TECHNICAL CORRECTIONS RELATING TO DOMESTIC 
                   EMPLOYMENT.

       (a) Amendment to Internal Revenue Code.--Section 
     3121(a)(7)(B) of the Internal Revenue Code of 1986 is amended 
     by striking ``described in subsection (g)(5)'' and 
     inserting ``on a farm operated for profit''.
       (b) Amendment to Social Security Act.--Section 209(a)(6)(B) 
     of the Social Security Act (42 U.S.C. 409(a)(6)(B)) is 
     amended by striking ``described in section 210(f)(5)'' and 
     inserting ``on a farm operated for profit''.
       (c) Conforming Amendment.--Section 3121(g)(5) of such Code 
     and section 210(f)(5) of such Act (42 U.S.C. 410(f)(5)) are 
     amended by striking ``or is domestic service in a private 
     home of the employer''.

     SEC. 424. TECHNICAL CORRECTIONS OF OUTDATED REFERENCES.

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

     SEC. 425. TECHNICAL CORRECTION RESPECTING SELF-EMPLOYMENT 
                   INCOME IN COMMUNITY PROPERTY STATES.

       (a) Social Security Act Amendment.--Section 211(a)(5)(A) of 
     the Social Security Act (42 U.S.C. 411(a)(5)(A)) is amended 
     by striking ``all of the gross income'' and all that follows 
     and inserting ``the gross income and deductions attributable 
     to such trade or business shall be treated as the gross 
     income and deductions of the spouse carrying on such trade or 
     business or, if such trade or business is jointly operated, 
     treated as the gross income and deductions of each spouse on 
     the basis of their respective distributive share of the gross 
     income and deductions;''.
       (b) Internal Revenue Code of 1986 Amendment.--Section 
     1402(a)(5)(A) of the Internal Revenue Code of 1986 is amended 
     by striking ``all of the gross income'' and all that follows 
     and inserting ``the gross income and deductions attributable 
     to such trade or business shall be treated as the gross 
     income and deductions of the spouse carrying on such trade or 
     business or, if such trade or business is jointly operated, 
     treated as the gross income and deductions of each spouse on 
     the basis of their respective distributive share of the gross 
     income and deductions; and''.

  The SPEAKER pro tempore. After 1 hour of debate on the bill, as 
amended, it shall be in order to consider the further amendment printed 
in House Report 108-54, if offered by the gentleman from Texas (Mr. 
Green) or his designee, which shall be considered read, and shall be 
debatable for 40 minutes, equally divided and controlled by the 
proponent and an opponent.
  The gentleman from Florida (Mr. Shaw) and the gentleman from 
California (Mr. Matsui) each will control 30 minutes of debate on the 
bill, as amended.
  The Chair recognizes the gentleman from Florida (Mr. Shaw).
  Mr. SHAW. Mr. Speaker, I yield myself such time as I may consume.
  This afternoon I am pleased to present to the House for its 
consideration the Social Security Protection Act of 2003, which is 
bipartisan legislation that fights fraud and abuse in Social Security 
programs.
  First, this bill protects nearly 8 million beneficiaries who cannot 
manage their own affairs and rely on representative payees appointed by 
the Social Security Administration. It does this by raising payee 
standards and by imposing stricter penalties on those who mismanage the 
benefits they are entrusted to administer.
  Second, this bill denies Social Security benefits to fugitive felons 
and probation and parole violators. Third, the Protection Act provides 
tools to further safeguard Social Security programs including new civil 
monetary penalties.
  Finally, this bill helps people with disabilities by giving greater 
access to legal representation when applying for benefits by improving 
work incentive programs and by expanding eligibility for the Work 
Opportunity Tax Credit to encourage more employers to hire individuals 
with disabilities.
  Despite the fact that a majority of the Members voted to pass this 
bill last month, the needed two-thirds approval

[[Page H2643]]

required under suspension of the rules was not achieved. That is 
because special interest groups betrayed Social Security and America's 
seniors to appease the few who believe they could get special treatment 
and be allowed to exploit an unintended loophole that presently exists 
in the law. These groups misinformed both public and the Congress by 
falsely claiming that teachers and other public servants who pay into a 
public employee pension plan instead of Social Security are being 
singled out for unfair treatment. According to the General Accounting 
Office and the Social Security Administration, these claims are false.
  In fact, government workers who do not pay Social Security taxes 
receive higher spouse or widow benefits than workers who do, given 
equal retirement benefits from work. By taking advantage of the 
loophole, a select group of public employees receives full Social 
Security spouse and widow benefits that no other working spouse in 
America receives, including other teachers who pay into Social Security 
for their entire career.
  I want to share this example provided by the Social Security 
Administration because it shows so well that assertions of targeting 
public servants for unfair reduction in spousal benefits are just 
simply incorrect.
  As this placard will show, we are comparing two working couples, the 
Bakers and the Smiths. They have equal retirement benefits from their 
work. In both cases the husband receives a Social Security work benefit 
of $1,200 per month, and the wife receives $300 per month based on her 
work. They are equal in every way except that Mrs. Baker paid Social 
Security taxes and receives her benefits from Social Security, but Mrs. 
Smith paid into a public pension plan instead of Social Security and 
receives her benefits from that plan.
  Both Mrs. Baker's and Mrs. Smith's spouse benefits are reduced. Mrs. 
Baker's spouse benefits of $600, which is one half of her husband's 
benefit amount, is reduced $1 for every dollar of her Social Security 
benefit, providing her with a $300 spouse benefit. Mrs. Smith's spouse 
benefit, also $600, is reduced $2 for $3 by her public pension benefit, 
providing her with a $400 spouse benefit.
  The end result, Mrs. Smith's benefit is $100 higher than Mrs. 
Baker's, even though Mrs. Baker paid her whole career into Social 
Security. Clearly, Mrs. Smith is not being discriminated against 
because she paid into a public pension plan instead of Social Security.
  Mrs. Smith has a twin sister, Mrs. Jones, who is also a teacher; but 
Mrs. Jones was a teacher in Texas who switched to a school cafeteria 
job on the last day and paid Social Security taxes in for that last 
day. Mrs. Jones has an advantage over every other working spouse in 
America. She receives both her worker's benefit and full spousal 
benefit. As a result her spousal benefit would be $300 higher than Mrs. 
Baker's and $200 higher than her twin's. Clearly, for someone who 
worked 1 day under Social Security, that is just plain unfair.
  Every Member of Congress deeply appreciates the valuable contribution 
of teachers and public servants and all workers, whether they be in 
Texas, Georgia, Florida, or New York. However, no single group of 
workers should have an unfair advantage over workers in other school 
districts, in other pension systems, or all across this Nation.
  We absolutely need a full discussion of all Social Security 
provisions affecting public employees, which is why the Subcommittee on 
Social Security will have a hearing on these issues and legislative 
opportunities in the coming weeks. While we want to make Social 
Security fair for all workers, we must take care not to worsen Social 
Security's already bleak fiscal picture or undermine the principle of 
Social Security as an earned benefit. It is an earned benefit. That 
would negatively affect both government workers and all Americans who 
depend on Social Security.
  This bipartisan bill does the right thing and has the support of many 
organizations. It was developed using recommendations from and in 
cooperation with the Social Security Administration and the Social 
Security Inspector General. It is also supported by the AARP, Citizens 
Against Government Waste, the National Conference of State Social 
Security Administrators, the Consortium for Citizens with Disabilities, 
the National Alliance for the Mentally Ill, the Association of 
Administrative Law Judges, the National Organization of Social Security 
Claimants' Representatives, and numerous other national and local law 
enforcement agencies and organizations.
  We should protect senior citizens from unscrupulous representative 
payees skimming off of the top. We should prevent fugitive felons and 
probation or parole violators from using Social Security dollars to 
finance their illegal activity. We should pass H.R. 743 to stop this 
fraud and abuse in Social Security and in the process save the 
taxpayers $655 million over the next 10 years.
  Mr. Speaker, I reserve the balance of my time.
  Mr. MATSUI. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I would like to commend my colleague from the State of 
Florida (Mr. Shaw), the Chair of the Subcommittee on Social Security of 
the Committee on Ways and Means. We entered into a bipartisan 
discussion, and we have a bipartisan bill at this time.
  The gentleman mentioned the Inspector General of the Social Security 
Administration. The Social Security Administration and the beneficiary 
community all came together last year to put this piece of legislation 
together. It was essentially the same bill that passed last year, and 
just 2 weeks ago it came again before the House Committee on Ways and 
Means and passed on a 35 in favor of to two against vote count. So this 
is a good bill. I hope we have final passage in favor of this piece of 
legislation.
  I might just very briefly go over the points of the legislation. One, 
it deals with representative payees; and basically what this means is 
that when we have a person who is perhaps mentally disabled, a minor, 
or somebody who is a frail elderly, they may not be able to collect the 
benefits themselves or know how to handle their benefit, Social 
Security benefits, that is. So we have a representative payee that will 
take the money and make sure that proper accounting of the money is 
taken care of. Essentially in some cases we have had representative 
payees where they have actually absconded with the money. This would 
tighten up the laws on representative payees and, secondly, would make 
sure that beneficiaries are held harmless and receive the full benefits 
even when the representative payee takes the money from them. It also 
would provide a greater legal representation for SSDI recipients, those 
people that are seeking disability benefits under Social Security, by 
providing for greater legal representation by changing some of the 
requirements for lawyers under the Social Security Administration Act.
  Lastly, it would deny benefits to fugitive felons. Right now under 
the law, through the quirk in the law, unfortunately, fugitive felons 
are able to receive Social Security benefits, and this would deny those 
benefits to fugitive felons.
  There are a number of other technical provisions in the legislation. 
One area I might just spend a few moments on is the one that my 
colleague from Florida talked about, and that is the government pension 
offset issue. As the Members know, this legislation was passed in 1976. 
It did not take place until the mid-1980s. It was not fully put in 
place until the 1980s. It was basically to take care of the disparity 
where one of the spouses has two employments over a period of their 
lifetime of work, one in the local or State government and one in the 
private sector. So one would then be eligible for both Social Security 
benefits and also eligible at the same time for a government pension.
  Under the law that currently is in place, a surviving widow or 
widower in this circumstance would have a reduction in their benefit 
level, depending upon the size of their pension. It was a law to try to 
correct an inequity. Unfortunately, the government pension offset has 
in some cases been fair but in many case has been unfair. One, many of 
the recipients do not know until actually their spouse dies that they 
are subject to that rule, in which case all of a sudden their lives 
have become totally disruptive. In fact, we

[[Page H2644]]

have calculated, and studies have shown this, that when one spouse 
dies, it still requires 80 percent of the former income that the couple 
had in order to live comfortably, and this in many cases drops that 
income level down to 30 or 40 percent of what they received when they 
were both alive. So there is a problem with this piece of legislation.
  What the gentleman from Florida (Mr. Shaw) and I have attempted to do 
was strengthen the potential loopholes that some call it loopholes and 
some say it is only a way to make sure their benefits are collected 
properly.
  The gentleman from Florida (Mr. Shaw) has indicated that he intends 
to hold hearings on the government pension offset issue, and we really 
appreciate that because I believe that some action should be taken in 
this Congress on that issue.

                              {time}  1230

  Obviously, we cannot reinstate full benefits, but perhaps there is 
some way we can at least help these recipients that are subject to this 
rule so that they will be able to continue on when one of the spouses 
passes away.
  It is, however, a situation now where some of my colleagues feel that 
they have a problem with this particular provision. This provision was 
not in the bill last year to close this provision on the government 
pension offset; it was added to the bill in this Congress, and many of 
my colleagues have questions about it.
  It would have been my hope that we would have dealt with this issue 
and the larger issue of trying to deal with the government pension 
offset, because in this situation it would put pressure on all of us to 
try to deal with this comprehensively. But we do have it before us at 
this time, and as many of us know, the gentleman from Texas (Mr. Green) 
will have an amendment in which he will move to strike that one 
provision out of this legislation.
  I intend to support his motion to strike this by way of an amendment 
but, at the same time I would hope that my colleagues on both sides of 
the aisle would support the final passage of this legislation, because 
it is a good bill and certainly we do believe that the other provisions 
of this legislation must move forward.
  Mr. Speaker, I reserve the balance of my time.
  Mr. SHAW. Mr. Speaker, I yield myself such time as I may consume. 
Very, very briefly, what the gentleman from California said about 
people receiving bad information from the Social Security 
Administration is absolutely correct, and we are working on that. This 
came out at the hearing that we had, and this is something that our 
committee will be addressing.
  Now, the reason that the correction, as far as the unfair benefits 
being paid out to people who never really paid into Social Security 
more than one day of their working life, that information did not come 
out from the General Accounting Office until after we passed our bill 
last June.
  The Democrat-controlled Senate, however, did have the benefit of the 
General Accounting Office study when they passed their bill, and they 
passed it by unanimous consent and they attached this provision to it.
  This is not a partisan issue. I understand the problems within 
certain States and those are only two States, by the way, Texas and 
Georgia. However, for the rest of this country, it is looking at 
Georgia and Texas as an unfair abuse of the Social Security system 
because of the inartful drawing of that one provision. This is what we 
are trying to correct here this afternoon.
  Mr. Speaker, I would say to the gentleman from California (Mr. 
Matsui) that at this particular time I do not expect to use all of our 
time on general debate. We have already been through this on 
suspension. I would invite the gentleman to put a couple of speakers up 
at this time.
  Mr. Speaker, I reserve the balance of my time.
  Mr. MATSUI. Mr. Speaker, I yield 2 minutes to the distinguished 
gentleman from Texas (Mr. Green).
  Mr. GREEN of Texas. Mr. Speaker, I thank the gentleman from 
California (Mr. Matsui), our ranking member on the Subcommittee on 
Social Security, for yielding me this time.
  One thing I do agree with the chairman of the Subcommittee on Social 
Security about is that we should reform the government pension offset. 
Instead of talking about technicalities or ways that people have 
figured a way around it, we ought to look at the whole issue. There has 
been legislation cosponsored by the majority of this House for 3 years, 
but we have not had a hearing yet on dealing with that. That is what is 
frustrating.
  So instead of dealing with the big issue, they are going to say, 
okay, for those teachers or firefighters or police officers in Texas or 
Georgia or whatever other States, they are going to punish those 
because they found a way under current law to be able to receive their 
widows' benefits. We are talking about widows benefits. I do not know 
about the GAO study or whatever they wanted to talk about, but I do 
know that we are talking about widows' benefits.
  Let me give an example. I have a lady in my own district in the 
Aldine School District; her husband passed away 10 years ago. She has 
been receiving his Social Security widow's benefits. She teaches 
school. She is 73 years old now. After decades of teaching math, she is 
ready to retire; but if she retires, she will have her widow's benefits 
under Social Security reduced so substantially that there will almost 
be nothing left, because of her teacher retirement under the State of 
Texas.
  Now, again, I do not know how the request was made for these GAO 
studies, but I do know that the facts on the ground show something 
different than what my colleagues say. This teacher will have to wait 
to retire. She would have to go to work for 5 years at a school that 
has Social Security. Well, she does not have that choice. We have some 
districts in Texas who do, some who do not. Very few actually do. So 
she would have to be 78 years old under the bill to be able to continue 
receiving her widow's benefits. That is wrong. That has been wrong, and 
it is affecting so many people. That is why we have an amendment, and I 
thank the Committee on Rules for giving us an opportunity to strike 
that section.
  We have an opportunity through that amendment that will do it. Let us 
deal with the whole issue, but let us also support the amendment that 
will leave this provision in here for people who need it.
  Mr. MATSUI. Mr. Speaker, I yield 2 minutes to the distinguished 
gentleman from California (Mr. Becerra), a member of the Committee on 
Ways and Means.
  Mr. BECERRA. Mr. Speaker, I thank the gentleman for yielding me this 
time.
  I first would like to thank the chairman of the subcommittee, the 
gentleman from Florida (Mr. Shaw), and also the ranking member, the 
gentleman from California (Mr. Matsui) for the work that they have done 
on this legislation.
  Certainly, those of us who have worked on this issue in the past know 
that we need to deal with these issues for all of those beneficiaries 
who are out there trying to collect their well-earned Social Security 
benefits, and also for those who have in the past had difficulties 
going before the Administration, the Social Security Administration, to 
get the benefits they deserve. Too, oftentimes we find that some of the 
folks that are now trying to collect their benefits are old, disabled; 
in many cases they have become incompetent and cannot do some of these 
things for themselves, and we have had to find ways to help them move 
their case along. The ``representative payee'' program has been a good 
one. Oftentimes, unfortunately, it has been abused by some, and we are 
trying to make sure that we forever guarantee that those people who 
have earned these benefits will get them and not someone who is trying 
to take advantage of them and claims to be providing advocacy on their 
behalf.
  This is a good bill. H.R. 743 was a bill that was passed last year by 
this House. I hope it does have a chance to become law this year. I do 
want to support, and I associate myself with the words of the gentleman 
from Texas (Mr. Green) who spoke. We have an issue with the government 
pension offset that we must address. We must address it in a way that 
deals with reform in its entirety.
  Many of us have talked about the need to make sure that we strengthen 
Social Security into the future. There

[[Page H2645]]

are a lot of folks, teachers, police officers, firefighters, who find 
that because they have not been in the system, or if they have been in 
part of the system for part of the time, the treatment that they will 
receive is different from those who have been within Social Security or 
completely outside of Social Security throughout the process. We must 
deal with this.
  To some people who may be watching, it may seem confusing what we are 
talking about with regard to the government pension offset but, really, 
the bottom line here is whether you understand GPO and what it stands 
for or not. What we are trying to do is make sure the system under 
Social Security is fair for everyone. At this stage there is an issue 
that has been raised whether or not through this legislation we should 
be trying to make changes to the GPO.
  I would urge all of my colleagues to support the bill, and I also 
urge my colleagues to support the Green amendment that he has offered 
today.
  Mr. MATSUI. Mr. Speaker, I yield 2 minutes to the distinguished 
gentleman from Texas (Mr. Rodriguez).
  Mr. RODRIGUEZ. Mr. Speaker, let me take this time to also rise and 
say that we really need to look at that government pension offset.
  The government pension offset unfairly reduces the retirement 
benefits of public employees who have dedicated their lives to serving 
their communities and our children. Many of those impacted expected to 
receive the Social Security benefit that their spouse earned, and we 
are talking about the majority, almost 90 percent are women that are 
widowed. So if we look at what we are doing, it is extremely 
discriminatory towards those women in this category. Often they remain 
unaware of the offset until they reach retirement age.
  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 have counted on. The resulting loss 
of income forces some into poverty and despair. Section 418 of the 
Social Security Protection Act would close the so-called loophole that 
allows educators in my home State of Texas to avoid the unjust and 
harsh impact of the government pension offset by transferring it to the 
school districts covering Social Security just before they retire.
  I would like to add that I am not alone in this. Mr. Speaker, 176 
other Members of this House from both sides of the aisle have 
cosponsored legislation to eliminate this provision. If Members agree 
that this provision is unfair, I would strongly urge them to vote in 
favor of this amendment when it comes forward and to vote against this 
bill.
  Once again, I asked the chairman on the Republican side to bring this 
forward and try to deal with this, because it is extremely important. I 
know we have argued about offshore and allowing companies to go 
offshore and have that loophole for the major companies. But when it is 
a loophole that applies to women and widows, we need to look at that 
and see if we can come back, and I would just ask the chairman and 
appeal to him to bring forward that bill and have an up-or-down vote on 
the entire bill and allow it to go and impact throughout the counties 
for these teachers and those individuals and those widows that fall 
under that category.
  Mr. SHAW. Mr. Speaker, I yield such time as he may consume to the 
gentleman from Texas (Mr. Brady), a member of the Subcommittee on 
Social Security.
  Mr. BRADY of Texas. Mr. Speaker, I support this bill. Let me address 
my remarks toward the teacher loophole portion of this, because this is 
what we are discussing the most.
  I admire teachers. They are hardworking and incredibly dedicated, as 
we all know. They are my friends, my sister-in-law, and my next-door 
neighbor, literally. But keeping open the Texas teacher loophole is 
terribly unfair.
  The loophole practice was first reported to the fraud hotline of 
Social Security a few years ago. A subsequent investigation by the 
General Accounting Office followed and, upon their finding that 
millions of dollars were being siphoned from Social Security, the 
recommendation was made to Congress to close it. The Senate voted 99 to 
0 to close it. But that is why we are here today in the House, to 
preserve the integrity of Social Security.
  This is how the loophole works in Texas, in my State. Teachers in the 
State retirement system do not pay into Social Security. They have 
opted out. They pay instead into a substitute retirement plan, the 
teacher retirement system of Texas. As they near retirement, a Texas 
teacher resigns from her school district. She pays then another school 
district that is in Social Security; she pays them between $200 and 
$500 to work for them 1 day, in the cafeteria, doing maintenance, or as 
a clerical aid. Typically, for that 1 day of work, the teacher 
contributes $3 into Social Security and thanks to the loophole, 
collects nearly $100,000 in Social Security benefits over her 
retirement. That is $3 into Social Security, $100,000 taken from Social 
Security. This is terribly unfair. It is unfair to all of the teachers 
in other States who have no loophole. It is unfair to all the working 
families in Texas, in America, who have no loophole, including our 
soldiers overseas; and it is certainly unfair to our elderly who, even 
if we close the loophole today, will see $450 million drained from 
their Social Security Trust Fund.
  On the Web site for the Texas Federation of Teachers, their 
President, John Cole, describes the loophole as a trick and proudly 
proclaims the gimmick is perfectly legal. The gimmick is perfectly 
legal.
  Well, the gimmick may be legal, but is it right? Virtually no other 
worker in Texas or America can take a job in a school cafeteria for a 
day, contribute $3 into Social Security, and walk away with nearly 
$100,000 more than their next-door neighbor. How do we justify this? We 
would not allow someone to spend 1 day as a substitute teacher and take 
home $100,000 in teacher retirement, so why would we allow a teacher to 
work 1 day in Social Security and take home $100,000 they did not earn?
  Alarmingly, this 25-year-old obscure loophole just recently 
discovered is now being institutionalized. In Texas, in my home State, 
teachers groups regularly hold retirement seminars to instruct their 
members on how to take advantage of the loophole. Some school districts 
make as much as $280,000 a year. That is a quarter of a million dollars 
a year, charging fees to teachers to work for them for just a day. 
During the General Accounting Office investigation, they even 
discovered one Texas university has gone so far as to regularly 
schedule 5 days per year where university professors can work their 
last day as a janitor under Social Security, contribute $3, and receive 
an extra $100,000. That is $100,000 that university professors in other 
States cannot earn, because they do not have a loophole. And it is 
$100,000 the janitor they worked alongside of cannot earn either, 
because they do not have a loophole.
  We are not going to create two classes of citizens in America, those 
who have loopholes and those who do not. Congress has a clear choice. 
We can keep open this lucrative loophole for a few that is draining 
$450 million from everyone else's Social Security, or we can stand up 
for our seniors, stand up for our elderly, stand up for the 99 percent 
of America's workers who are playing by the fair rules.

                              {time}  1245

  If we insist on keeping this loophole open, Congress, I think, has 
forfeited any future credibility to claiming to protect Social Security 
for our seniors. We will rightly be labeled hypocrites.
  What can we do to help our teachers, but still be fair to America? 
The question has been raised today, and it is a fair one. I am 
convinced the answer lies in repeal or at least modification of the 
windfall elimination provision, which docks workers who have earned 
both the Social Security retirement and the government pension. I think 
the principle we should be applying is this: if you have earned two 
pensions, you should receive two pensions.
  I have asked the chairman of the Subcommittee on Social Security, the 
gentleman from Florida (Mr. Shaw), to hold hearings on the windfall 
provision; and he has agreed. I appreciate his willingness to promptly 
study the impact and fairness of the windfall provision as it relates 
to today's retirees.
  I think we will find when we do study it, and I am in total agreement 
with

[[Page H2646]]

our teachers on this, that the windfall makes it much more difficult to 
recruit into teaching the professionals who have had other careers. I 
think it penalizes educators who held a second job in order to make 
ends meet. Teachers tell me this would go a long way towards helping 
them. And best of all, it is not a gimmick. It is fair for them, and it 
is fair to the rest of America.
  I urge the House to pass H.R. 743 without amendment. We must not 
allow our precious Social Security to be drained away; and most 
importantly, we cannot create two classes of citizens in America, those 
who have loopholes and those who do not.
  Mr. MATSUI. Mr. Speaker, I yield 4 minutes to the distinguished 
gentleman from Texas (Mr. Doggett), a member of the Committee on Ways 
and Means.
  Mr. DOGGETT. What a truly disappointing presentation. Mr. Speaker, 
this is not about ``gimmicks,'' and it is not really even about Texas 
teachers. It is about whether this Congress will have on the floor of 
the House its first ever vote in recent memory on correcting the 
Government Pension Offset and Windfall Elimination Provision.
  Last year, when the constituents of the gentleman from Texas (Mr. 
Brady) contacted him about this, he said that these provisions seemed 
to be ``most unfair.'' He pointed out, quite correctly, that ``about 40 
percent of the total number of affected beneficiaries are widows and 
widowers''; that ``240,000 affected beneficiaries are women.''
  I think that we need an opportunity in this Congress to address the 
Government Pension Offset. When the gentleman from Florida (Mr. Shaw) 
released the GAO report to which he has referred today, although he and 
the gentleman from Texas (Mr. Brady) use terms like ``fraud'' and 
attack the professional associations of our teachers in Texas, although 
he even has the audacity today to invoke our soldiers overseas against 
our police officers and our firefighters and teachers who deserve a GPO 
correction, when the gentleman from Florida (Mr. Shaw) introduced the 
GAO report, he said ``The apparently growing use'' of what he calls a 
loophole ``is only a symptom of general concern about whether the GPO 
itself is fair. . . . That is why my plan . . . would reduce the 
Government Pension Offset.'' [Aug. 15, 2002 press release]
  His plan that he refers to is the one that he and the gentleman from 
Texas (Mr. Brady) voted against when we presented it in the Committee 
on Ways and Means. It is the plan which the Committee on Rules made out 
of order today. Not Texas teachers, not ``gimmicks,'' not the Texas 
Federation of Teachers, but police officers in New York City and 
firefighters in San Francisco, and everyone in between who has been a 
public servant and who has suffered as a result of this Windfall 
Elimination Provision, they are the ones that they are standing against 
today.
  ``GPO'' stands for ``Government Pension Offset.'' It cuts into the 
retirement security of dedicated public servants, like firefighters, 
police officers, and teachers who provide us physical and economic 
security and who need retirement security. ``GPO'' really means ``gouge 
police officers,'' and it gouges our teachers and firefighters seeking 
their well-earned retirement security.
  GPO also stands for ``good photo opportunity.'' That is what is 
involved here. Whether it is police officers, firefighters, or 
teachers, Members are eager to stand with them and get their picture 
taken. But when it comes time to vote with them and protect their 
retirement security, they come up with one excuse after another.
  This provision dealing with the self-help provisions that Texas 
teachers have used, and used in accordance with the letter of the law 
as written, specifically as written by this Congress, was buried on 
page 70 of the original bill. They did not even have the courage to 
bring it up for a vote in the committee at that point, or to wait until 
our Texas teachers could be here.
  An apt analogy to what is happening here today is to find oneself 
driving down a highway and seeing a senior citizen, a retired teacher, 
pulled off along the side of the road with a flat tire.
  The reaction of most folks is to stop and help. Well, the Congress 
comes along and it stops to help. It tells the retirees, ``You cannot 
fix this problem yourself,'' the way our Texas teachers have done, 
``that is our job.'' Then, while the senior waits for help, the 
Congress gets back in the car and drives off, leaving them stranded 
beside the road.
  That is exactly what has happened here as this Republican Congress 
refuses to address the problem that our Texas teachers and our 
firefighters are rightly concerned about. Instead, they pick up a tire 
iron all right, but they are using it on our retirees, not the flat.
  The GPO bills introduced and never set for a hearing or never voted 
on will never provide retirement coverage, only political coverage. 
When Members pose with public servants for a good photo opportunity, a 
``GPO,'' they hope those employees will not notice that: When they 
smile, the real message is, ``I am standing with you, but I am not 
voting with you.''
  Mr. SHAW. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I must say, and be sure that all the Members that are 
listening to this debate know, this debate has nothing to do with the 
Government Pension Offset that the last speaker was referring to. That 
particular provision has a price tag of $9 billion.
  As chairman of the Subcommittee on Social Security, I would like to 
correct that, or at least go halfway towards correcting that. But part 
of my job as chairman of this subcommittee is also to protect the 
integrity of the Social Security program itself. To go off willy-nilly 
and start throwing dollars out means the demise of the Social Security 
system. It will come up short well before 2016, which is the day on 
which the cash coming into the system is not enough to pay the 
benefits. We have to be concerned about that.
  We are going to have hearings on the Government Pension Offset, and 
try to find ways to pay for it. But we have to pay for it within the 
system. To do otherwise would be just plain reckless.
  Mr. Speaker, I yield 3 minutes to the gentleman from Missouri (Mr. 
Hulshof), a distinguished member of the subcommittee.
  Mr. HULSHOF. Mr. Speaker, I thank the gentleman for yielding time to 
me.
  The gentleman from Texas (Mr. Doggett) who spoke last has regaled us 
on a number of occasions with some interesting and I would say 
provocative speeches over the last couple of years about the use and 
abuse of tax shelters. He has proclaimed himself, Mr. Speaker, the 
defender of the individual taxpayer against abusive corporate tax 
shelters. He has often cited Enron when that issue was before Congress. 
He has railed against the expansion of the business meal deduction, 
saying taxpayers would subsidize $400 bottles of wine, a thinly-veiled 
swipe at the former Speaker.
  In the immediate aftermath of September 11, in the committee he went 
as far as to say that Republicans on the committee were looking for tax 
cuts for Osama bin Laden. Now he attempts to wrap himself into the 
fireman's coat and shield himself with the policeman's shield. It is 
just not so.
  Section 418 of the Social Security Protection Act closes a loophole. 
The General Accounting Office says this about that loophole: ``4,819 
individuals from Texas and Georgia have performed work in Social 
Security-covered positions for short periods, and in fact even for a 
day, in order to offset'' or get away from this government pension 
offset in this exemption.
  This is a loophole, a loophole that is being exploited. In 2002, one-
fourth of all the public education retirees in the State of Texas took 
advantage of this loophole.
  Let me give an example of an egregious type of way that this is being 
exploited, and unfortunately, much to the chagrin of other hardworking 
Social Security payees across the country. School officials reported 
individuals were taking, or one individual traveled 800 miles one way, 
800 miles, a two-day trip, to be employed for a single day, traveling 
back 800 miles back to that person's home in order to get away from 
this loophole.
  As my friend, the gentleman from Texas (Mr. Brady), noted, a lot of 
these school districts are seeing the money flow in because they are 
charging these retirees, these teachers, a processing fee for their 
school districts. Ultimately, what it means is that

[[Page H2647]]

these workers are seeing their annual pensions increased by the tune of 
about $5,000 a year to which they are not entitled.
  So we can talk about the government pension offset all we would like, 
or the windfall elimination provision. Yet what we are trying to do is 
root out waste, fraud and abuse. The General Accounting Office has told 
us clearly and unequivocally this is a loophole that is being 
exploited, and it is time that this Congress acted to close this 
loophole, because other retirees are the ones that are losing the 
advantage of their social security.
  Mr. MATSUI. Mr. Speaker, I yield myself 2 minutes.
  Mr. Speaker, I would like to just make a couple of observations, if I 
may. I appreciate the Chair of the subcommittee on Social Security of 
the Committee on Ways and Means, his discussion.
  I just want to point out, the President had said during the campaign 
of 2000 that he wanted to reform Social Security. He came up in 2001, 
December of 2001, with a commission report and three recommendations 
all dealing with privatization of Social Security. The gentleman 
himself has come up with a privatization plan. We still have not seen 
Social Security reform in the committee, nor have we seen it on the 
floor of the House.
  Initially, I was hoping to take care of the GPO under Social Security 
reform. Obviously, we cannot do it because there is no intention of 
bringing Social Security reform to the House floor until after the 2004 
election, after the President presumably is reelected. So it is 
unfortunate we have to deal with this issue now.
  I also want to say that with respect to the gentleman from Texas (Mr. 
Doggett), he was trying to deal through the whole issue of corporate 
shelters with things like the Bermuda inversion issue, in which 
companies in the United States went offshore in order to avoid U.S. 
taxes, thereby increasing taxes for individual citizens. These are the 
things that he has been working on.
  Lastly, this is about the government pension offset, to a large 
extent; it is not about loopholes. The reason I say this, just 3 weeks 
ago the gentleman voted, the gentleman who just spoke voted in 
committee on a piece of legislation actually in which we were going to 
try to give benefits to our young men and women overseas, in the 
Persian Gulf at this time, by adding little provisions like eliminating 
taxation on foreigners who actually bet on U.S. gaming and horse races.
  These are the kinds of things that are real loopholes. These are the 
things that are loopholes. These are ordinary citizens who are just 
trying to deal with their own livelihood when one of their spouses 
dies.
  Mr. Speaker, I yield 1 minute to the gentleman from Texas (Mr. 
Doggett).
  Mr. DOGGETT. Mr. Speaker, I am so pleased that the last speaker 
raised this issue of corporate loopholes, because it is the same crowd 
that stood in the Committee on Ways and Means repeatedly and on the 
floor of this House and has defended corporations that renounce their 
citizenship and head off for tax havens like Bermuda. They say that 
this is fine, that this is legal, and that we do not need to do 
anything about it.
  As to the Government Pension Offset and the issue of the alleged 
``loophole'' in Texas, what the gentleman failed to mention is that we 
offered in committee to close the alleged ``loophole'' for Texas 
teachers, but to do it in connection with reforming the GPO problem 
that they have consistently refused to correct all this time. Fix the 
two together.
  We make them that same offer today. This is not about gimmicks in 
Texas, it is about people that file bills, as the gentleman from 
Florida (Mr. Shaw) has done, that they never intend to move through the 
Congress; file bills they do not even get a hearing on, and say they 
are on the side of the firefighters, police officers, and teachers 
while doing nothing for them.
  Mr. SHAW. Mr. Speaker, I yield 30 seconds to the gentleman from 
Missouri (Mr. Hulshof).
  Mr. HULSHOF. Mr. Speaker, again I would say to the gentleman who just 
spoke, who has self-proclaimed his time here as far as trying to shut 
down these corporate abusive shelters, in existing law that the Social 
Security Protection Act attempts to protect is a loophole that is being 
exploited, a single-day exception where workers attempt to get around 
this law.
  Perhaps if the gentleman's constituents had set up post office boxes 
in Bermuda, perhaps we would see some righteous indignation in favor of 
this legislation instead of opposed.

                              {time}  1300

  Mr. MATSUI. Mr. Speaker, I yield 2 minutes to the distinguished 
gentleman from the State of Maine (Mr. Allen).
  Mr. ALLEN. Mr. Speaker, I thank the gentleman for yielding me time.
  Mr. Speaker, I rise to make an argument outside of the scope of this 
latest controversy, though I will say the sooner this Congress deals 
with the GPO issue, the better, because it is a very important issue 
back in my home State of Maine. But I do rise in support of this bill, 
H.R. 743.
  I commend the work of the chairman of the subcommittee, the gentleman 
from Florida (Mr. Shaw) and the ranking member, the gentleman from 
California (Mr. Matsui) for their effort to bring this bill forward.
  I want to confine my remarks to one particular section of the bill, 
section 414. That section will directly benefit one of my constituents, 
Nancy Wilson of Bremen, Maine. Nancy Wilson has been denied Social 
Security benefits through a quirk in the law for more than 10 years, 
and thanks to the efforts of the Committee on Ways and Means, H.R. 743 
will fix that quirk and will enable Nancy Wilson to receive the 
benefits to which she otherwise would have been entitled.
  Since the 105th Congress I have been working to pass legislation that 
would assist Mrs. Wilson. In both the 105th and 106th Congresses, 
private legislation passed this House but was not acted on by the other 
body. Since then the Committee on Ways and Means has graciously worked 
with me in both the 107th and 108th Congresses to include language 
similar to my bill, H.R. 249, in the Social Security Protection Act in 
order to help Mrs. Wilson.
  As anyone who has worked with her knows, Nancy Wilson is a tenacious 
battler. She will not give up. She will not allow her elected 
representatives to give up until she receives the justice that she 
feels she deserves and that she does deserve. I hope with the passage 
of this bill, Nancy's efforts will finally be vindicated.
  I urge the swift enactment of this legislation.
  Mr. SHAW. Mr. Speaker, I yield 2\1/2\ minutes to the gentleman from 
Arizona (Mr. Hayworth), a distinguished member of the committee.
  (Mr. HAYWORTH asked and was given permission to revise and extend his 
remarks.)
  Mr. HAYWORTH. Mr. Speaker, I thank the chairman of the subcommittee 
for yielding me time, and I appreciate and applaud the remarks of my 
friend from Maine (Mr. Allen) across the aisle because it typifies, at 
long last, we actually had discussion on the bill we are working on 
this afternoon and the benefits it brings, rather than another 
convoluted process.
  So let us focus on the legislation at hand, H.R. 743. The preceding 
speaker pointed out how it would directly help one of his constituents.
  Mr. Speaker, let me suggest to you that this legislation will help 
thousands, if not millions, of Social Security recipients because it 
protects Social Security. First and foremost, we strengthen the ability 
of this government and the Social Security Administration to deny 
benefits to fugitive felons and probation or parole violators. We have 
such a huge system which so many Americans depend on that it is hard to 
believe, but true, there are actually felons and fugitives who have 
depended on Social Security and taken money out of the system. That is 
wrong. That is going to stop.
  It deters fraud. It creates new civil monetary penalties for those 
who would commit fraud against our seniors and against Social Security 
recipients. It prevents persons from misrepresenting themselves as they 
provide Social Security-related services. We move to protect what so 
many Americans depend upon.
  And I should also point out that one key group of constituents whom I 
was

[[Page H2648]]

honored to work with, with the Commissioner of the Social Security 
Administration, came to Arizona, to Tempe, Arizona, to issue our first 
ticket to work for a disabled member of our society who wanted to 
emphasize the ability in disability, we broaden and strengthen the 
ability with ticket to work. We help individuals with disabilities gain 
access to representation and to get back to work. We expand the 
eligibility for the work opportunity tax credits. Employers outside of 
a predesignated number in the past can take advantage of the work 
opportunity tax credit. It allows the Social Security Administration to 
examine alternative methods of encouraging work.
  This is a good bill. Pass it on the merits. Support H.R. 743.
  Mr. MATSUI. Mr. Speaker, I yield 2\1/2\ minutes to the distinguished 
gentlewoman from the State of Texas (Ms. Jackson-Lee).
  (Ms. JACKSON-LEE of Texas asked and was given permission to revise 
and extend her remarks.)
  Ms. JACKSON-LEE of Texas. Mr. Speaker, it is interesting, this is a 
good bill. I am frankly appalled that we have a situation where we have 
to fix the question of fugitive felons receiving Federal dollars, and I 
believe we should fix it. That is the point I rise to make, Mr. 
Speaker.
  Forgive me for talking in a second-level voice, but this could have 
been a bill that all of us supported. My good friend from Arizona (Mr. 
Hayworth) stood a couple of years ago disagreeing with opposing the 
government pension offset. What we are trying to do is to fix it to 
make it work.
  We offered, I understand, I am not on the committee but I understand 
that the gentleman from Connecticut's (Mr. Shays) legislation that 
could have fixed this question that we are concerned with about 
teachers and police and firefighters was offered in committee and was 
rejected along a party line vote.
  Mr. Speaker, this is legislation that should be supported by all. We 
should have a 100 percent vote on the Green amendment, which I am 
supporting, for these teachers and widows that we are talking about. 
This is a simple amendment because what it does is this amendment works 
to correct the problem, and that is in 418.
  This amendment is important to have. The legislation does nothing to 
remedy the GPO to make it fair to public servants. This amendment 
strips this one hidden offensive provision in this otherwise 
noncontroversial bill that deals with prohibiting a widow to be 
eligible for a pension based upon State, local, or Federal jobs, that 
is ridiculous, or requiring them to work an extra 5 years.
  Now why, Mr. Speaker, we could not work together to ensure that we 
had a bipartisan bill. My voice is weak, it is broken, but I could not 
miss talking about this inequity.
  Why are we here fighting about a bill that has some very good 
elements? Why are we here fighting over the Green amendment? It should 
be under unanimous consent, because it makes sense for people not just 
in Texas but in New York. And I think it is important, Mr. Speaker, to 
say here we go again, dividing unnecessarily along party lines on what 
is good for America. And frankly, I think we got a whole lot of work to 
do with our troops in Iraq in terms of benefits that they need and 
veterans benefits that they need and tax changes that they need. We 
could do this in a bipartisan way.
  So I hope, Mr. Speaker, that we will find a way to unanimously 
support this Green amendment that will strike this language that puts 
elderly people back to work, and I hope we will find a way to correct 
this legislation so we have a bill that will have the support of all 
Members.
  Mr. Speaker, I am saddened to have come to the floor today to speak 
out yet against H.R. 743. The Social Security Protection Act of 2003. 
This bill was broken last time it came up on the floor. Many public 
servants in our districts noticed that. We noticed it was broken and 
voted the bill down. But, here it is again--and it still has not been 
fixed. There is much good in this bill. If the Majority Leadership 
would take out the small error that will hurt our teachers and 
firefighters and police, this bill could be in front of the President 
soon. That would be a great service.
  Social Security represents a covenant between the U.S. Federal 
Government and the American people. It is a promise that if a person 
works hard, and contributes into this investment program, that when it 
comes time for them to retire--their government will ensure that a fair 
benefit is there for them. It seems that too often, criminals take 
advantage of the trust between the Social Security Administration and 
the seniors and disabled Americans it serves. They misuse Social 
Security benefits. Such activity is worse than just stealing, because 
it threatens the confidence that the American people have in the 
government. That confidence is the foundation of our democracy.
  So last Congress, I joined with every voting Member of this House in 
support of The Social Security Act of 2002. It was an excellent piece 
of bipartisan legislation, which would have made great strides towards 
cutting down on the abuse of the Social Security system. Most of the 
major provisions of that bill are reflected in the bill before us 
today, and I still support them. The bills would both protect Social 
Security recipients by mandating reissue of funds when their payments 
are misused. Representative payees who misuse a person's benefits would 
be forced to reimburse those funds, plus would be subject to fines of 
up to $5000 if they knowingly provided false or misleading information.
  For further protection, representative payees for over 15 individuals 
would be required to be licensed and bonded, and would be subject to 
periodic reviews. The bills would allow the Commissioner to withhold 
benefits from fugitive felons, and persons fleeing prosecution. The 
bills also provide for numerous improvements to the present system, 
which would reduce fraud and abuse of the program.
  The bill passed unanimously in the House last Congress, and similar 
legislation cleared the Senate. But unfortunately this important 
legislation got hung up at the end of last year. With such support and 
progress, this should have been an easy piece of work to get through 
this year, and a score for the American taxpayers. Instead, a wrench 
has been thrown into the works, through the addition of a small section 
that has provoked a deluge of phone calls into my office from, it seems 
like, every schoolteacher in my district.
  The Texas branch of the American Federation of Teachers describes 
Section 418 as ``poison for Texas school employees.'' That section 
relates to the Government Pension Offset. At present, if an individual 
receives a government pension based on work that was not covered by 
Social Security, his or her Social Security spousal or survivor benefit 
is reduced by an amount equal to two-thirds the government pension. 
This provision of current law is called the Government Pension Offset 
(GPO). However, under the ``last day rule,'' an individual is exempt 
from the GPO if he or she works in a job covered by Social Security on 
the last day of employment.
  Many school disticts offer teachers non-Social Security government 
pensions, so till now many teachers have been forced to take advantage 
of the ``last day'' loophole. Just before they retire, they get a job 
in a business with a Social Security pension for a day, in order to 
receive their deserved benefits. This is a ridiculous system, and the 
appropriate way to fix it would have been to repeal the GPO. In fact, I 
have co-sponsored H.R. 594 with my colleague from California, Buck 
McKeon, and 132 others to do just that.
  Instead, the bill before us today closes the loophole. I am usually 
all for getting rid of loopholes, but now is no time to be ``sticking-
it'' to teachers--just as we are trying to leave no child behind, just 
as we have a shortage of qualified teachers in many areas. This could 
drive many people away from careers in teaching.
  For example, last month I received a call from one woman in my 
District who was a teacher earlier in her life. Her husband recently 
passed away and she has been contemplating going back into teaching. 
But she has been warned that she could actually jeopardize her 
financial future by going to work. As a widow, she will be entitled to 
her husband's social security benefits. However, if she starts to teach 
in a school district with a government non-Social Security pension, she 
could lose $360 per month in retirement benefits--over $4000 per year.
  Why should she risk it? If H.R. 743 passed today, it won't be only 
she that loses. It will be our Nation's children who lose--an 
experienced, intelligent teacher.
  The GPO issue needs to be addressed, but not today. Right now, we are 
giving money to criminals who are beating our system and undermining 
confidence in the future of Social Security and the government as a 
whole. We need to protect Social Security, and we need to do it soon. 
But I will wait until we can do it without attacking our teachers, and 
penalizing our children.
  I will vote ``no'' on H.R. 743 unless the offending provision is 
taken out, and urge my colleagues to do the same.

[[Page H2649]]

  Mr. MATSUI. Mr. Speaker, I yield 2 minutes and 10 seconds to the 
distinguished gentleman from the State of Texas (Mr. Hinojosa).
  Mr. HINOJOSA. Mr. Speaker, I rise in opposition to H.R. 743 and I 
wish to express my strong support for the amendment offered by my 
friend, the gentleman from Texas (Mr. Green).
  The underlying bill was rejected by the House last month when it was 
considered under suspension of the rules. Yet it is being brought 
before us again with the same objectionable provision that will hurt 
teachers, police officers, firefighters and other State and local 
workers in Texas and lots of States around the country.
  H.R. 743 would compel experienced public servants to quit their jobs 
prematurely and work in the private sector for 5 years before they 
retire in order to avoid a reduction in their pension caused by the 
Social Security offset. We all know that our Nation has a critical 
shortage of teachers and public safety personnel. This provision would 
only exacerbate the problem.
  That is why I support the Green amendment to strip this offending 
provision from the bill. Unfortunately, the Committee on Rules has 
prevented this House from considering a permanent fix to the problems 
associated with the government pension offset.
  My friend, the gentleman from Texas (Mr. Doggett), proposed an 
amendment to the Committee on Rules that would end this policy that 
forces public employees to offset their State pensions against the 
Social Security benefits they have earned. But the Committee on Rules 
refused to allow the Doggett amendment to be considered today. As a 
result, State and municipal employees throughout the Nation will 
continue to be hurt by this unfair policy.
  At a time when Federal and State budgets for education and public 
safety are being slashed, this is just one more slap in the face to 
those teachers and those public safety officers who are working hard to 
educate our children and protect our communities. We need to let them 
know that education and security are national priorities and that we 
value their dedication. I encourage my colleagues to move quickly to 
bring relief to teachers and other public employees by supporting the 
Green amendment.
  Mr. SHAW. Mr. Speaker, I yield 2 minutes to the gentleman from 
California (Mr. Herger), a member of the committee.
  Mr. HERGER. Mr. Speaker, I rise in strong support of the Social 
Security Program Protection Act. I would like to thank the gentleman 
from Florida (Chairman Shaw) and the other members of the Committee on 
Ways and Means who have worked tirelessly to improve Social Security 
programs that provide an important, crucially important, safety net for 
many of our Nation's neediest disabled and elderly individuals. These 
changes have been designed to ensure that the right benefits go to the 
right people, a principle which should guide our efforts on behalf of 
the taxpayers we serve.
  I am especially pleased that the bill before us includes a provision 
designed to keep convicted fugitive felons from getting Social Security 
checks. These efforts build upon the criminal welfare provision which I 
introduced and which were enacted into law more than 3 years ago. By 
all accounts, these laws have been effective in stopping illegal 
fraudulent Social Security payments to prisoners. We have also stopped 
hard-earned taxpayer dollars from being used to subsidize addicts with 
disability checks. Overall, we have saved taxpayers and beneficiaries 
literally billions of dollars.
  Other provisions in the legislation before us, such as granting the 
Social Security Administration the tools it needs to weed out waste and 
fraud, will further protect vulnerable beneficiaries.
  Mr. Speaker, this bill passed with overwhelming bipartisan support in 
the last Congress. I urge my colleagues to join me today in supporting 
it once again.
  Mr. MATSUI. If the Speaker may inquire whether the gentleman from 
Florida (Mr. Shaw) has any further speakers?
  The SPEAKER pro tempore (Mr. Linder). Does the gentleman from Florida 
(Mr. Shaw) have any further speakers?
  Mr. SHAW. At this particular time I may close, depending on what I 
hear from the other side.
  Mr. MATSUI. Mr. Speaker, how much time remains?
  The SPEAKER pro tempore. The gentleman from California (Mr. Matsui) 
has 5 minutes remaining. The gentleman from Florida (Mr. Shaw) has 5\1/
2\ minutes remaining.
  Mr. MATSUI. Mr. Speaker, I yield 3 minutes to the gentleman from the 
State of Texas (Mr. Green).
  Mr. GREEN of Texas. Mr. Speaker, I think the debate has been good 
because it has talked about what the concern is, that we really need to 
deal with government pension offset.
  I know there has been legislation introduced now for a number of 
years and that there is a commitment to have a hearing on it, but we 
have a bill right now; the latest legislation, H.R. 594, has at least 
50 Republican Members and in a very short time has received almost 200 
co-sponsors of it, that would eliminate the controversial government 
pension offset. And I guess that is what is frustrating because we have 
so much support to eliminate it or at least, as had been earlier talked 
about, let us moderate it. Do not punish widows that are public 
employees, two-thirds. Let us make them only pay one-third. Sure, they 
only worked a day maybe, but they are not getting it for their work 
under Social Security.

                              {time}  1315

  They are getting it because they were married to their spouse for at 
least 10 years and, in some cases, 30 and 40 years; and yet, because 
they were public schoolteachers, they had to take advantage of that 
loophole because, otherwise if their husband died before they were 62, 
they did not receive anything. So they found a way under current law to 
seek redress, and this bill is going to close that loophole, 
supposedly.
  Again, maybe it should be, if my amendment is adopted, I would like 
the committee to really bring out a reform during this Congress 
because, again, we have been waiting now for many years. In fact, my 
colleague from Arizona (Mr. Hayworth), I remember 3 years ago he and I 
stood at a press conference with lots of Members talking about we need 
to reform the government pension offset, and that is what ought to be 
done, but do not punish the States of Georgia or Texas or whatever 
other jurisdiction said, well, wait a minute, we know it is wrong, we 
know it is wrong to penalize a widow who teaches school.
  For example, a colleague of mine from Texas has a military base, Fort 
Hood, with a lot of his constituents now in the Persian Gulf. They said 
we have a program that is called Troops to Teachers. Our armed services 
pay Social Security so they retire from the military, and yet they are 
going to go back to teach and they are going to be penalized for the 
Social Security they earned in the military if they retire in Texas 
from the teacher retirement system and they do not work for a school 
district that has Social Security.
  The system is wrong, and my colleagues are making it worse by 
changing it by this bill; and this is what is so bad. My colleagues can 
show me all of the studies, but I cannot explain those studies to my 
constituents who are teachers who said you mean to tell me I have been 
married 30 years to my husband and everything because we are talking 
about 80 percent of these people are women, and we know nationally the 
retirement income for women is so much lower than men. We have teachers 
who have been married all these years, and sure, they are going to take 
advantage, but that is because they have been married to someone who 
paid into Social Security for at least 10 years, in some cases 3 or 4 
decades.
  Mr. MATSUI. Mr. Speaker, I yield myself the balance of my time.
  This is a good bill. I want to commend the gentleman from the State 
of Florida, the Chair of the subcommittee. We put together a bipartisan 
bill. Obviously with the Social Security Administration, with the 
beneficiary groups and certainly with the Inspector General's office, 
and certainly this is a good piece of legislation.
  I hope that each of my colleagues, as I, will vote for final passage 
of this legislation. Obviously, we do have one controversy here, and it 
is the government pension offset issue; and the gentleman from Florida 
has indicated he

[[Page H2650]]

will address this issue through a hearing of the subcommittee sometime 
in the near future, I believe after the April recess; and so I look 
forward to working with him with the idea of perhaps given the time 
constraints and other problems that we might have that we can really 
address this issue in a comprehensive way.
  I do hope that there will be some way that we can vote in favor of 
the gentleman from Texas's (Mr. Green) amendment when it is offered in 
about 40, 45 minutes because I think that will keep the pressure on the 
institution, both bodies and the executive branch of government, to 
address this issue.
  There is no question that many people are caught unaware when one 
spouse dies that they did not know about the government pension offset. 
It results in a reduction of their level of income by 40, 50, even in 
many cases 60 percent, and secondly, we do have to deal with the 
inequalities of the proposal. There is no question that in some cases 
it does actually help and it creates inequality in terms of people that 
have multiple jobs.
  On the other hand, it does create some inequality, and as a result of 
that, we really need to address this issue in a comprehensive way; and 
given the fact we probably will not deal with Social Security reform in 
this Congress, it is incumbent on us at least to address this issue and 
perhaps a few other issues, as well, as long as they are not extremely 
costly.
  Mr. Speaker, I urge a ``yes'' vote on final passage, a ``yes'' vote 
when the gentleman from Texas (Mr. Green) offers his amendment.
  Mr. Speaker, I yield back the balance of my time.
  Mr. SHAW. Mr. Speaker, I yield myself such time as I may consume.
  (Mr. SHAW asked and was given permission to revise and extend his 
remarks, and include extraneous material.)
  Mr. SHAW. Mr. Speaker, I place in the Record a large number of 
letters in support from police groups, fire groups, AARP, and a number 
of other letters.

                                                         AARP,

                                    Washington, DC, March 5, 2003.
     Hon. Clay Shaw,
     House of Representatives, Washington, DC.
       Dear Representative Shaw: On behalf of AARP and its 35 
     million members, I wish to commend you and Representative 
     Matsui for introducing H.R. 743, the ``Social Security 
     Program Protection Act of 2003.'' This comprehensive 
     legislation is important to claimants, beneficiaries and the 
     overall Social Security program.
       We are pleased that the legislation would protect 
     beneficiaries against abuses by representative payees. For 
     many years, AARP recruited volunteers as representative 
     payees so that Social Security beneficiaries who needed a 
     representative payee but could not find one would not lose 
     any benefits. These programs were quite successful but were 
     limited in scope.
       AARP has had a longstanding interest in curbing deceptive 
     mailings targeted at older Americans. This legislation builds 
     upon prior legislation and could discourage other mailers 
     from scaring older people about their Social Security and 
     Medicare benefits.
       The legislation would strengthen the Ticket to Work Act and 
     conduct pilot projects to improve work incentives for those 
     with a disability. These changes would send a strong signal 
     that our society values the contributions of all its 
     citizens.
       Thank you again for your leadership in moving H.R. 743 in 
     the House.
           Sincerely,
                                                    David Certner,
     Director, Federal Affairs.
                                  ____

                                              Council for Citizens


                                     Against Government Waste,

                                   Washington, DC, March 10, 2003.
     Hon. Clay Shaw, Chairman,
     Hon. Robert Matsui, Ranking Member,
     Committee on Ways and Means, Subcommittee on Social Security, 
         House of Representatives, Washington, DC.
       Dear Chairman Shaw and Ranking Member Matsui: On behalf of 
     the more than 1 million members and supporters of the Council 
     for Citizens Against Government Waste (CCAGW), I commend you 
     both for introducing H.R. 743, the Social Security Protection 
     Act of 2003. CCAGW supports this important legislation.
       Passage of H.R. 743 would fiscally strengthen the Social 
     Security program by reining in the loss of millions flowing 
     away from beneficiaries each year due to waste, fraud and 
     abuse. It strengthens the supervision of individuals and 
     institutions that handle benefit checks belonging to others, 
     bars Social Security payments to fugitives, and would allow 
     federal courts to order an individual who breaks a Social 
     Security-related law to make restitution to the fund.
       The members of CCAGW also support your efforts to close the 
     loophole regarding government pension offsets for Social 
     Security benefits. This loophole has allowed thousands of 
     individuals to receive Social Security benefits for previous 
     employment for which they did not pay into the system. The 
     Government Accounting Office (GAO) has recommended 
     eliminating this loophole, estimating that failure to do so 
     will cost the program $450 million in long-term overpayments.
       Enactment of H.R. 743 would boost solvency of the Social 
     Security program and ensure that benefits would go to those 
     who have earned it by instituting strict safeguards for 
     annuitants and the programs on which they depend. This bill 
     will be among those considered for inclusion in CCAGW's 2003 
     Congressional Ratings.
           Sincerely,
                                                    Thomas Schatz,
     President.
                                  ____


 National Conference of State Social Security Administrators Position 
                               Statement

       Overview: This bill is intended to make changes to various 
     sections of the Federal Social Security Act. One of the many 
     changes provides for an extended period of employment in a 
     position covered by Social Security in order to be eligible 
     for the Government Pension Offset (GPO) exemption.
       Current law: The current Social Security Act allows any 
     employee to be exempt from the GPO if, on their last day of 
     employment, they are in a covered position. While this little 
     noticed provision has been in the law for many years it has 
     recently become the subject of discussion and possible abuse. 
     It has been noted that a number of employees who have worked 
     in a non-covered position during their normal working career 
     have switched over to a position covered by Social Security 
     on their last day of employment in order to circumvent the 
     GPO impact on their benefits.
       This perceived abuse can be significantly reduced by the 
     passage of this legislation. In addition, this change for the 
     state and local government employees, brings the criteria 
     into synchronization with the Federal employee requirements.
       Position: The National Conference of State Social Security 
     Administrators supports the changes proposed in section 418 
     of H.R. 743.
       Contact: If you have any questions or comments regarding 
     this Position Statement or other activities of the NCSSSA, 
     please contact either Nicholas C. Merrill, Jr. (IL) 
     Legislative Committee Chairman, at (217) 785-2340, or Steve 
     Delaney, (OR) President, at (503) 603-7694.
       NCSSSA background: Since its formation in 1952, the NCSSSA 
     has worked closely with SSA and IRS to address social 
     security and medicare coverage and employment tax issues 
     raised by state and local government employers and state 
     social security administrators throughout the United States. 
     The NCSSSA works with federal officials to ensure legislative 
     and regulatory changes address state and local concerns. The 
     NCSSSA provides leadership to state and local governments 
     through accurate interpretation of federal laws and 
     regulations, communication of Federal tax policy, and 
     resolution of problems arising at the state and local level.
                                  ____

                               National Council of Social Security


                                Management Associations, Inc.,

                                   Hackensack, NJ, March 31, 2003.
     Hon. Clay Shaw,
     Chairman, Social Security Subcommittee, House Ways and Means 
         Committee, Rayburn House Office Building, Washington, DC.
       Dear Chairman Shaw: We appreciate that your efforts as 
     Chairman of the Social Security Subcommittee have brought to 
     light many issues that affect the stability and solvency of 
     the Social Security program. Your continued attention to 
     detail ensures that SSA recipients will be better served in 
     the future.
       One such issue is a loophole that currently exists in the 
     law regarding the Government Pension Offset. The National 
     Council of Social Security Management Associations (NCSSMA) 
     favors the provision in H.R. 743, ``The Social Security 
     Protection Act of 2003,'' that closes this loophole that 
     affects the Government Pension Offset.
       As you are aware, legislation was enacted in 1977 creating 
     a Government Pension Offset (GPO) to equalize the treatment 
     of workers covered by Social Security and those with 
     noncovered government pensions. The GPO prevents workers from 
     receiving a full spousal benefit on top of a pension earned 
     from noncovered government employment. The law, however, 
     provides an exemption to the GPO if an individual's last day 
     of state/local employment is in a job that is covered by both 
     Social Security and the state/local government's pension 
     system. That provision provides a loophole that needs to be 
     closed.
       The Government Accounting Office found last year that 3,500 
     teachers in Texas switched to clerical or janitorial 
     positions covered by Social Security on the last day of their 
     employment in order to avoid the GPO. The GAO estimates that 
     use of the loophole thus far could cost Social Security $450 
     million and even more if use of the loophole grows. Not 
     closing this loophole would be fiscally irresponsible and 
     unfair to other citizens who comply with the intent of the 
     law. Therefore we favor the provision in H.R. 743 designed to 
     rectify this problem.
           Sincerely,
                                                    Anthony Pezza,
                                                        President.

[[Page H2651]]

     
                                  ____
                                                    Consortium for


                                   Citizens With Disabilities,

                                    Washington, DC, March 4, 2003.
     Hon. E. Clay Shaw,
     Hon. Robert Matsui,
     House of Representatives, Washington, DC.
       Dear Representatives Shaw and Matsui: On behalf of the 
     Consortium for Citizens with Disabilities Task Forces on 
     Social Security and Work Incentives Implementation, we are 
     writing to express our support for the speedy passage of H.R. 
     743, the Social Security Protection Act of 2003.
       We appreciate the hard work and the perservance of the 
     Subcommittee on Social Security in addressing this important 
     legislation over the course of two Congresses and again in 
     this 108th Congress. Your leadership and commitment last year 
     resulted in the passage of the Social Security Program 
     Protection Act of 2002, H.R. 4070, in the House by a vote of 
     425 to 0. Clearly, the issues addressed in the bipartisan 
     Social Security Protection Act are important to people with 
     disabilities who must depend on the Title II and Title XVI 
     disability programs. We urge House passage of H.R. 743.
       H.R. 743 is a very important bill for people with 
     disabilities. We believe that it should be enacted as soon as 
     possible. People with disabilities need the protections of 
     the representative payee provisions. People with disabilities 
     who are attempting to work need the statutory changes to the 
     Ticket to Work program in order to better utilize the 
     intended work incentive provisions enacted in 1999. In 
     addition, beneficiaries with disabilities need the provision 
     requiring the Social Security Administration to issue written 
     receipts, and to implement a centralized computer file 
     record, whenever beneficiaries report earnings or a change in 
     work status. These important provisions have not been 
     controversial--in fact, they have enjoyed significant 
     bipartisan support--and have simply fallen prey to the 
     legislative process over the last two Congresses. We 
     appreciate your interest in moving H.R. 743 quickly so that 
     these important protections can become available to 
     beneficiaries as soon as possible.
       One of the most important sections of H.R. 743 for people 
     with disabilities is the section dealing with improved 
     protections for beneficiaries who need representative payees. 
     Approximately 6 million Social Security and Supplemental 
     Security Income beneficiaries have representative payees, 
     often family members or friends, who receive the benefits on 
     their behalf and have a responsibility to manage the benefits 
     on behalf of the beneficiaries.
       H.R. 743 includes important provisions strengthening SSA's 
     ability to address abuses by representative payees. The 
     provisions would: require non-governmental fee-for-services 
     organizational representative payees to be bonded and 
     licensed under state or local law; provide that when an 
     organization has been found to have misused an individual's 
     benefits, the organization would not qualify for the fee; 
     allow SSA to re-issue benefits to beneficiaries whose funds 
     had been misused; allow SSA to treat misused benefits as 
     ``overpayments'' to the representative payee, thereby 
     triggering SSA's authority to recover the money through tax 
     refund offsets, referral to collection agencies, notifying 
     credit bureaus, and offset of any future federal benefits/
     payments; and require monitoring of representative payees, 
     including monitoring of organizations over a certain size and 
     government agencies serving as representative payees.
       In addition, H.R. 743 would extend the direct payment of 
     attorneys fees in SSI cases on a voluntary basis. Advocates 
     believe that such a program will make legal representation 
     more accessible for people with disabilities who need 
     assistance in handling their cases as they move through the 
     extremely complex disability determination and appeals 
     systems.
       CCD is a working coalition of national consumer, advocacy, 
     provider, and professional organizations working together 
     with and on behalf of the 54 million children and adults with 
     disabilities and their families living in the United States. 
     The CCD Social Security and Work Incentives Implementation 
     Task Forces focus on disability policy issues in the Title 
     XVI Supplemental Security Income program and the Title II 
     disability programs. We look forward to the House passage and 
     final enactment of H.R. 743.
           Sincerely,
         Co-chairs, Social Security and Work Incentives 
           Implementation Task Forces: Marty Ford, The Arc and UCP 
           Public Policy Collaboration; Ethel Zelenske, National 
           Organization of Social Security Claimants' 
           Representatives; Cheryl Bates-Harris, National 
           Association of Protection and Advocacy Systems; Susan 
           Prokop, Paralyzed Veterans of America; Melanie Brunson, 
           American Council of the Blind; Paul Seifert, 
           International Association of Psychosocial 
           Rehabilitation Services.
                                  ____

         National Organization of Social


                          Security Claimants' Representatives,

                              Midland Park, NJ, February 26, 2003.
     Hon. E. Clay Shaw, Jr.,
     Subcommittee on Social Security, Committee on Ways and Means, 
         House of Representatives, Rayburn House Office Building, 
         Washington, DC.
       Dear Mr. Chairman: On behalf of the National Organization 
     of Social Security Claimants' Representatives (``NOSSCR''), 
     we offer our support for the important goals of H.R. 743, the 
     Social Security Protection Act of 2003.
       Specifically, we support the protections in Title I for 
     beneficiaries who have representative payees and support 
     provisions which, for the first time, require the Social 
     Security Administration to issue receipts to beneficiaries 
     when they report earnings or a change in work status. 
     Additionally, title III of this measure contains two 
     important provisions NOSSCR strongly supports. These 
     provisions are designed to ensure access to legal 
     representation for those Social Security and Supplemental 
     Security Income (``SSI'') claimants who seek to be 
     represented as they pursue their claims and appeals. First, 
     the bill limits the assessment of the user fee to $75.00 or 
     6.3 percent, whichever is lower. Second, the bill extends the 
     current Title II fee withholding and direct payment procedure 
     to the Title XVI program, giving SSI claimants the same 
     access to representation as is currently available to Social 
     Security disability claimants. Together, these provisions 
     make changes that will help claimants obtain representation 
     as they navigate what can often be a confusing and difficult 
     process.
       We are dismayed, however, by the addition of a sunset 
     provision for the extension of withholding to the Title XVI 
     program. Enactment of an attorneys' fee payment system with 
     an ``end date'' will undercut its very purpose: to enable 
     more SSI claimants seeking a lawyer to hire one. The sunset 
     provision shortchanges SSI claimants who desire legal 
     representation. We are not aware of any policy justification 
     for this provision, and we urge its deletion from the bill.
       NOSSCR appreciates your continued interest in improving the 
     Social Security and SSI programs and ensuring the best 
     possible service delivery. We look forward to your 
     Subcommittee's consideration of this legislation.
           Very truly yours,
                                                    Nancy G. Shor,
     Executive Director.
                                  ____

                                                    Association of


                                    Administrative Law Judges,

                                 Milwaukee, WI, February 28, 2003.
     Hon. Clay Shaw, Jr.,
     Chairperson, Subcommittee on Social Security, Rayburn House 
         Office Building, Washington, DC.
       Dear Chairperson Shaw: I write on behalf of the Association 
     Law Judges. We represent about 1000 administrative law judges 
     in the Social Security Administration and in the Department 
     of Health and Human Services which comprise about 80% of the 
     administrative law judges in the Federal government. I am 
     writing in regard to H.R. 743, a bill to provide additional 
     safeguards for Social Security and Supplement Security Income 
     beneficiaries with representative payees, to enhance program 
     protections, and for other purposes.
       We support the goals of H.R. 743. In particular, we support 
     the attorney fee payment system improvements provided for in 
     the bill, but we believe that the legislation should not 
     include any ``sunset'' provisions. We further support the 
     provisions in the legislation for the elimination of 
     transcript requirements in remand cases fully favorable to 
     the claimant.
       We also favor the provision in the legislation that directs 
     the Social Security Administration to issue receipts to 
     acknowledge submissions of earnings by beneficiaries.
       Thank you for your work on this important legislation.
           Sincerely,
                                               Ronald G. Bernoski,
                                                        President.

  Mr. Speaker, we are going to go into the amendment process in just a 
moment. I think it is important for the House to realize here that what 
we are talking about in all this debate has been on a very narrow point 
that really only affects basically one State, possibly two, and that is 
a question of where their particular pension law is written in such a 
way that it creates a loophole and gives their teachers, their 
firefighters, an advantage over the rest of the country.
  This is not about teachers. It is not about widows. It is not about 
firefighters. It is about basic fairness.
  So I would hope that in the final vote I think we will get a big vote 
in favor of the bill itself. I have no doubt about it, but I would urge 
the Members to defeat the amendment that is going to be offered by the 
gentleman from Texas (Mr. Green) that would preserve this loophole for 
these few people. It is just simply not fair.
  Mr. REYES. Mr. Speaker, I rise today in support of the Green 
Substitute amendment to H.R. 743. This amendment would result in 
removing Section 418 from the bill. This section negatively affects 
teachers and other public servants in my state of Texas. This is 
unacceptable. Our hardworking teachers deserve more.
  I know full well the effort and hard work that teachers dedicate to 
their students. My wife was a teacher for many years and my daughter, 
who just completed her doctorate degree in education, is currently an 
administrator at a local school district. I believe that teaching is

[[Page H2652]]

one of the most honorable professions. I credit our teachers with 
laying the foundation for the future of our country and the world. In 
addition to teaching children the basic skills they need, teachers are 
an important guiding force for our children. After parents, they are 
one of the greatest influences on children. We therefore need to make 
sure we have well-qualified and well-paid teachers educating students.
  As you know Mr. Speaker, passage of this bill before us would reduce 
the spousal Social Security benefits for countless teachers. H.R. 743 
also affects school support personnel, police officers, firefighters, 
and other public servants. At a time when multi-billion dollar tax 
breaks are being given to our country's top income earners, our 
teachers and other public servants would be penalized through this 
bill. These are people we should be protecting and rewarding. We should 
not make them pay for the tax cuts we give those who are more 
fortunate. For this reason I cannot support the original version of 
this bill.
  Mr. Speaker, I have co-sponsored H.R. 594, a bill introduced by my 
colleague, Mr. McKeon, that will eliminate the Government Pension 
Offset and the Windfall Elimination Provisions that target our teachers 
and other public servants by denying them the opportunity to retain 
their full spousal Social Security benefits. This bill would be a more 
appropriate permanent solution to the unfair treatment of teachers' 
social security benefits. However, until we can pass that bill, I 
strongly urge my colleagues to support the Green Substitute, oppose 
H.R. 743 unless it is amended, and continue to support our teachers. I 
yield back the balance of my time.
  Mr. PAUL. Mr. Speaker, I rise in reluctant opposition to HR 743, the 
Social Security Protection Act. While this bill contains many 
provisions worthy of support, it also removes the only means by which 
many widowed Texas public school teachers can receive the same spousal 
social security benefits as every other American. As I am sure my 
colleagues are aware, widowed public school employees in Texas, like 
public employees throughout the The Government Pension Offset even 
applies if the public employee in question worked all the quarters 
necessary to qualify for full social security benefits either before or 
after working in the public school system!
  The effect of the Government Pension Offset is to punish people for 
teaching in public schools! However, current law provides widowed Texas 
public school teachers a means of collecting the full social security 
spousal benefits. Unfortunately, this bill removes that option from 
Texas teachers. Since I believe the Congress should repeal the 
Government Pension Offset by passing HR 524, which repeals both the 
Government Pension Offset and the Windfall Elimination Provision, 
another provision that denies public employees full social security 
benefits, I must oppose this bill.
  Instead of punishing public school teachers, Congress should be 
encouraging good people to enter the education profession by passing my 
Teacher Tax Cut Act (HR 613) which provides every teacher with a $1,000 
tax credit, as well as my Professional Educators Tax Credit act (HR 
614), which provides a $1,000 tax credit to counselors, librarians, and 
all school personnel. Congress should also act to protect the integrity 
of the Social Security Trust Fund by passing my Social Security 
Preservation Act (HR 219), which ensures that Social Security monies 
are not spent on other programs. Congress should also pass my Social 
Security for American Citizens Only Act (HR 489), which ensures that 
non-citizens who have not worked the required number of quarters and 
illegal immigrants do not receive social security benefits.
  Mrs. JONES of Ohio. Mr. Speaker, I rise in support of H.R. 743. 
First, I would like to acknowledge Mr. Matsui for working diligently on 
the Social Security Act of 2003.
  As we all know, H.R. 743 will extend the direct fee withholding 
program payment to attorneys who represent supplemental security income 
claimants, thus encouraging more attorneys to represent them.
  It is vital that we pass legislation that addresses the major 
concerns of our seniors, the blind, and the disabled.
  This legislation imposes greater standards on individuals and 
organizations that serve as representative payees for social security 
and supplemental security income recipients; this legislation will make 
non-governmental representative payees liable for ``misused'' funds and 
subject them to civil monetary penalties; H.R. 743 will reduce the fee 
assessments from the Social Security Administration that charges 
attorneys for fee withholding.
  Overall, the Social Security Act of 2003 will be beneficial to 
recipients and those who serve as representatives for recipients.
  Furthermore, H.R. 743 will make a number of technical changes 
designed to reduce social security fraud and abuse.
  Mr. Speaker, I will close my statement for the Record with supporting 
H.R. 743.
  Mr. SHAW. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Linder). All time having been yielded 
back, it is now in order to consider the amendment in the nature of a 
substitute printed in House Report 108-54.


 Amendment In The Nature Of A Substitute Offered by Mr. Green of Texas

  Mr. GREEN of Texas. Mr. Chairman, I offer an amendment in the nature 
of a substitute.
  The SPEAKER pro tempore. The Clerk will designate the amendment in 
the nature of a substitute.
  The text of the amendment in the nature of a substitute is as 
follows:

       Amendment in the nature of a substitute offered by Mr. 
     Green 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.

[[Page H2653]]

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.

                    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 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.''.

[[Page H2654]]

       (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 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

[[Page H2655]]

       (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 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

[[Page H2656]]

     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:
       ``(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

[[Page H2657]]

     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:
       ``(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

[[Page H2658]]

     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) 
     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.

[[Page H2659]]

       ``(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--
       (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

[[Page H2660]]

     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 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.

                    Subtitle C--Technical Amendments

     SEC. 421. TECHNICAL CORRECTION RELATING TO RESPONSIBLE AGENCY 
                   HEAD.

       Section 1143 of the Social Security Act (42 U.S.C. 1320b-
     13) is amended--
       (1) by striking ``Secretary'' the first place it appears 
     and inserting ``Commissioner of Social Security''; and
       (2) by striking ``Secretary'' each subsequent place it 
     appears and inserting ``Commissioner''.

     SEC. 422. TECHNICAL CORRECTION RELATING TO RETIREMENT 
                   BENEFITS OF MINISTERS.

       (a) In General.--Section 211(a)(7) of the Social Security 
     Act (42 U.S.C. 411(a)(7)) is amended by inserting ``, but 
     shall not include in any such net earnings from self-
     employment the rental value of any parsonage or any parsonage 
     allowance (whether or not excluded under section 107 of the 
     Internal Revenue Code of 1986) provided after the individual 
     retires, or any other retirement benefit received by such 
     individual from a church plan (as defined in section 414(e) 
     of such Code) after the individual retires'' before the 
     semicolon.
       (b) Effective Date.--The amendment made by this section 
     shall apply to years beginning before, on, or after December 
     31, 1994.

     SEC. 423. TECHNICAL CORRECTIONS RELATING TO DOMESTIC 
                   EMPLOYMENT.

       (a) Amendment to Internal Revenue Code.--Section 
     3121(a)(7)(B) of the Internal Revenue Code of 1986 is amended 
     by striking ``described in subsection (g)(5)'' and 
     inserting ``on a farm operated for profit''.
       (b) Amendment to Social Security Act.--Section 209(a)(6)(B) 
     of the Social Security Act (42 U.S.C. 409(a)(6)(B)) is 
     amended by striking ``described in section 210(f)(5)'' and 
     inserting ``on a farm operated for profit''.
       (c) Conforming Amendment.--Section 3121(g)(5) of such Code 
     and section 210(f)(5) of such Act (42 U.S.C. 410(f)(5)) are 
     amended by striking ``or is domestic service in a private 
     home of the employer''.

     SEC. 424. TECHNICAL CORRECTIONS OF OUTDATED REFERENCES.

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

     SEC. 425. TECHNICAL CORRECTION RESPECTING SELF-EMPLOYMENT 
                   INCOME IN COMMUNITY PROPERTY STATES.

       (a) Social Security Act Amendment.--Section 211(a)(5)(A) of 
     the Social Security Act (42 U.S.C. 411(a)(5)(A)) is amended 
     by striking ``all of the gross income'' and all

[[Page H2661]]

     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''.

  The SPEAKER pro tempore. Pursuant to House Resolution 168, the 
gentleman from Texas (Mr. Green) and a Member opposed each will control 
20 minutes.
  The Chair recognizes the gentleman from Texas (Mr. Green).
  Mr. GREEN of Texas. Mr. Speaker, I yield myself such time as I may 
consume.
  (Mr. GREEN of Texas asked and was given permission to revise and 
extend his remarks.)
  Mr. GREEN of Texas. Mr. Speaker, we have had a great deal of debate 
already on the general debate, but I rise in opposition to the 
legislation in support of my amendment, and it is frustrating because 
there are some good things in this legislation, but I guess what is 
really frustrating is that why should a section of this bill be 
addressed to public educators, firefighter and police officers that 
happen to be in Texas or Georgia, and yet, in another section, we are 
trying to combat fraud by felons.
  I agree, we should combat fraud by felons; and if we have felons who 
are receiving Social Security, felons who are absconding, I do not 
mind. In fact, why are we waiting this long to keep them from getting 
their Social Security? Do not go after widowed teachers, whose spouses 
paid into Social Security.
  Eighty percent are women who receive fewer retirement benefits than 
men, and it is not just for teachers, firefighters in the same 
legislation. It just seems like it is wrong to put that issue in the 
same legislation due to felons receiving Social Security benefits.
  In fact, I had a constituent last night say, you mean to tell me all 
these years I have taught and I am in the same legislation trying to 
close a loophole for fugitive felons receiving Social Security? I said, 
I am sorry, ma'am, but that is what it has. The bill has some other 
good things in it; but we have this amendment, and I appreciate the 
Committee on Rules providing this.
  It is called a loophole, but it is really not. There are lots of 
loopholes in our laws, but it is called laws; and I know on our side of 
the aisle we have talked about corporate loopholes for a long time. Let 
us close up the corporate loopholes, but why are we closing up one for 
the widowed teachers, again, who their only punishment is they worked 
as a public schoolteacher and was married to someone who paid into 
Social Security at least 10 years and, again, in some cases, many more 
years?
  When the House first considered this legislation, it failed because 
of a controversial provision that we have, and the bill ought to pass, 
but it ought to be passed without this provision, and let us come back, 
get our Ways and Means subcommittee and the Committee on Ways and Means 
to deal with the government pension offset as a separate bill.
  Last session, this legislation passed out of the House with, I do not 
think, any dissenting votes. It went to the Senate; and on a 
technicality, they added this back in, and it was stopped in the House 
when they tried to pass it on unanimous consent last fall and when most 
of us were in our districts.
  In States where some public employees are not covered by Social 
Security, such as in Texas, this does reduce the spousal benefits by 
two-thirds, and in some cases, it can eliminate all of them, all their 
benefits. It is a problem for many public servants, but it is 
especially, again, bad for women, and, again, since 80 percent of the 
Texas schoolteachers and retirees are women. Sixty percent of that 
group is married, and again, I think it is interesting on the floor of 
the House because I always heard the statement, consistency is the 
hobgoblin of little minds, but here we have bills that can enforce 
marriage, why are people on social services, that encourage them to get 
married, and here we have teachers who are married for all these years, 
and yet we are punishing them under the pension government offset.
  Mr. Speaker, I reserve the balance of my time.
  The SPEAKER pro tempore. Who seeks time in opposition?
  Mr. SHAW. Mr. Speaker, I claim the time in opposition, and I yield 7 
minutes to the gentleman from Texas (Mr. Sam Johnson), a valuable 
member of the Subcommittee on Social Security of the Committee on Ways 
and Means.
  Mr. SAM JOHNSON of Texas. Mr. Speaker, this is a terrible amendment. 
What I am rising for is to support equality for 95 percent of working 
Americans who pay into Social Security.
  Today's debate is about fairness, a need to bring equity to a system 
under scrutiny. This amendment concerns Texas teachers. This bill 
concerns equality, fairness and equity.
  Texas is home to great students and great schools, thanks in part to 
great Texas teachers. Educated in Texas schools myself, I put my kids 
through Texas schools, and my grandkids are attending Texas schools; 
but there is a lot of misinformation out there about Texas teachers and 
their retirement plan.
  Before I get too far into the details of this issue, I want to 
explain some of the fundamentals of Social Security. When the Social 
Security System was created, the workforce was made up largely of men 
whose wives stayed home. Spousal benefits were created for these women. 
Social Security spousal benefits are for the nonworking spouse of a 
worker covered by Social Security. Generally, we think of this as a 
stay-at-home mom and a working dad. Social Security retirement benefits 
are for those who work and pay Social Security taxes. Ninety-five 
percent of working Americans are covered by this program.
  The situation is very different today from when Social Security was 
created in the 1930s. The majority of families today have two earners 
supporting the family. A primary rule of Social Security is that 
everyone is able to collect either their own retirement benefit from 
Social Security or their spousal benefit, whichever is higher. Let me 
repeat that. It is one or the other, not both.
  The Texas teacher retirement system is a substitute for Social 
Security. A person can participate in one system or the other, but not 
both. Most school districts in Texas have chosen to stay out of Social 
Security; yet they have always had the chance to join the system. In 
fact, fifty school districts in Texas have entered into Social 
Security, and they can have their own 401(k)-type program also. Again, 
at any time school districts can leave the Texas teacher retirement 
system and enter into Social Security, but they cannot do both because 
the retirement system was a substitute for Social Security.
  Back to Social Security. Whether a married couple works in a job such 
as a nurse and a small business owner, Social Security-covered teacher 
and an accountant or a lawyer or an engineer, they both pay into Social 
Security and both are subject to this rule. A husband and wife are each 
able to collect either their retirement benefits earned through their 
own hard work or they are able to collect spousal benefits, i.e., 50 
percent of retirement, whichever is higher. They cannot collect both.
  It is very possible that if one spouse earns significantly less than 
the other, for example, that nurse and a small business owner, then the 
nurse is going to have higher spousal benefits than her own retirement. 
In that case, the nurse will collect the higher spousal benefit but may 
ask herself why she paid all those Social Security taxes all those 
years. If a retirement benefit is $600, for example, for the nurse, and 
her spouse benefit is $800, she would collect $800 but not $1,400 which 
is what her husband would have collected.
  Again, this is how the system works for 95 percent of all Americans. 
This bill concerns some teachers in Texas who have questioned the 
system because they want both Social Security

[[Page H2662]]

spouse benefits and their Texas retirement. Again, the Texas teacher 
retirement system is a substitute for Social Security. A person can do 
one or the other, but not both.
  I want teachers to understand that the government pension offset 
actually only reduces their spousal benefit by two-thirds of their 
State retirement benefit rather than dollar for dollar as in the case 
for other working spouses.

                              {time}  1330

  Teachers right now get a better deal and more bang for their buck 
than 95 percent of the American public. They get one-third more of 
their spousal benefits than 95 percent of working Americans.
  The so-called ``loophole'' that is being closed here today is one 
small part of the government pension offset meant to encourage entire 
school districts to join the Social Security system. If an entire 
school district, such as the Plano Independent School District, were to 
decide to enter Social Security and get out of State retirement, then 
every teacher in that school district would then be subject to all 
Social Security rules, even for a teacher who only works 1 day.
  Roughly 4,800 teachers in Texas have found a way as individuals to 
leave their regular teaching job covered by State retirement and move, 
for 1 day, to a school district that does pay Social Security taxes and 
then retire. An example is a teacher from Plano who is covered by the 
State retirement system. If she transfers her last day of work from 
Plano to Ponder, Texas, which does pay Social Security, she is paid 
roughly $6 per hour. She might pay a total of $3 into the Social 
Security fund, but because of this final day of work in Ponder, paying 
Social Security taxes, she is able to collect the higher of either her 
benefit or full spousal.
  Of course, because she only paid $3 in, she would collect the spousal 
benefits based off her husband's work, plus she collects her Social 
Security substitute; that is, her Texas teacher retirement money. She 
can double dip, when 95 percent of the American public cannot. This 
costs the Social Security System thousands of dollars.
  The General Accounting Office has estimated that $450 million is 
being paid in benefits under this loophole, and that number could 
increase tenfold if the loophole is marketed to other people throughout 
the country.
  I am pro-teacher, and in Texas they have a great State retirement 
system. Mr. Speaker, this is not how Social Security operates for 95 
percent of working Americans and we are going to break the Social 
Security System.
  Mr. GREEN of Texas. Mr. Speaker, I yield myself such time as I may 
consume to say that I realize my colleague from Texas did not have time 
to yield, but let me just say that these teachers do not make the 
choice between the teacher retirement systems and Social Security. The 
choice is made by the local school districts. That is why 50 school 
districts in Texas pay into both.
  We have more than 1,100 school districts in the State of Texas where 
those local school board members, not those employees, those local 
school board members make that decision.
  Mr. Speaker, I yield 2 minutes to the gentleman from Texas (Mr. 
Lampson).
  Mr. LAMPSON. Mr. Speaker, there are an awful lot of good people who 
want to leave some kind of employment into which they have been paying 
Social Security and go into the classroom, and our classrooms across 
the State of Texas and across this whole country are crying for good 
people to go into the classroom.
  My wife was one of those people who had a job that paid into Social 
Security for a long period of time. She is going to receive minimal, if 
anything, from the teacher retirement system. But upon her retirement 
is it right for her to have been discouraged, after being encouraged to 
come in, because she is not going to receive some of the benefits she 
thought she might be able to? That is not right. That is not what we 
are trying to do here. We want to be able to encourage good qualified 
people to go into our classrooms.
  This legislation is going to have broad implications for teachers in 
Texas and many other States. It is going to very likely force an 
exodus, a mass exodus of good experienced teachers from our public 
schools. What impetus does an experienced teacher have to stay in the 
classroom and continue teaching if the government is, in effect, going 
to significantly reduce his or her retirement payment potential after 
this year?
  Well, the bill also fails to address a larger issue for public 
servants in this country. The government pension offset unfairly 
penalizes teachers and government workers and the employees most likely 
to pay into a public pension plan. So how can we sit idly by while our 
public service employees are indeed being penalized for serving their 
communities?
  I think we really should show a different loyalty to our first 
responders, who we from this floor praise so very often. The government 
pension offset is a deterrent to public service across this Nation. 
There is a solution to this problem. We believe that we offered it and 
it has been turned down.
  If we are to attract the best and brightest in public service, such 
as our teachers, firefighters, and police officers, then we must repeal 
this unfair provision. I urge a vote for the Green amendment and I urge 
my colleagues to support the passage of legislation that would 
permanently repeal the government pension offset. Our public servants 
deserve our support.
  Mr. SHAW. Mr. Speaker, I yield such time as he may consume to the 
gentleman from California (Mr. Thomas), the distinguished chairman of 
the Committee on Ways and Means.
  Mr. THOMAS. Mr. Speaker, I thank the gentleman for yielding me this 
time.
  Prior to being elected to Congress, some of us were actually in the 
profession of teaching. I was, for a number of years, and I paid into 
the California State Teachers Retirement System. I can tell my 
colleagues right now that in California, no serious and responsible 
professional teacher would think that their 20 or 25 years devoted to 
the classroom should be capped off by scurrying to another school 
district where there is clear collusion between the districts to allow 
for 1 day, 1 week, or 1 month of employment so that they can scam the 
system. Now, that is basically what the Green amendment asks us to 
continue to allow; fortunately not in California, but unfortunately in 
Texas and perhaps in Georgia.
  Let me get my colleagues to really understand what is going on here. 
Is there a problem with the offset? Of course there is. We just had a 
colloquy on the floor with the chairman of the Subcommittee on Social 
Security and the ranking member of the Subcommittee on Social Security 
and there was agreement that we will seriously address the pension 
offset. I have friends of mine who are still in teaching who have 
implored me to address that. We are in the process of addressing it.
  The whole point of the Green amendment is do we allow something to 
continue which goes something like this: Let us take a teacher in 
Texas, Mrs. Brown or a Mrs. Green, and say she is employed in Dallas or 
Houston. And let us say she has worked for a number of years and has 
successfully put a significant amount of money in the Texas State 
Teachers Retirement System. She is now ready to retire. She finds 
another district. And it is true that the local district officials 
choose whether their employees are in the Social Security System or in 
the State teachers system. That is a local choice.
  But what happens is those board members are in collusion with other 
districts when they allow a 20-plus year career teacher to work, 
perhaps in areas not directly to their certificate of teaching 
credential but simply a job. And let us say they work there for as much 
as, oh, a month. They may have paid into Social Security, oh, maybe 
$100. And according to the Social Security actuaries, that 1 month, 
after those distinguished years of teaching, could produce as much as 
$93,000 of taxpayers' money going to this person who put a blemish on 
their professional teaching career to play an angle.
  The Green amendment says let us allow these folks to continue to play 
this little game of collusion to raid the Social Security System under 
the guise that we should take care of these people. If we vote for the 
Green amendment what we are doing is relieving pressure to address the 
real problem.
  I would urge all my colleagues to understand a ``yes'' vote on the 
Green

[[Page H2663]]

amendment slows down the addressing of the pension offset. A ``no'' 
vote on the Green amendment puts all Americans in the same position, 
pressuring us to do something about the pension offset. Please, do not 
remove the pressure by voting ``yes'' on the Green amendment. Vote 
``no'' on the Green amendment and all Americans will feel the pressure, 
rather than just a few who distinguish themselves at the end of their 
teaching career to go clip lawns, sweep up paper, or maybe even latch 
on to a substitute position to scam the system.
  Mr. GREEN of Texas. Mr. Speaker, I yield myself such time as I may 
consume to comment that having the chairman of the Committee on Ways 
and Means calling this ``scamming the system'' is like the pot calling 
the kettle black. We have provisions in our Tax Code for individuals, 
one person. We have Tax Code provisions for one company or groups of 
companies. Yet it is a scam system if we are going to protect public 
school educators.
  Mr. Speaker, I yield 2 minutes to the gentleman from Texas (Mr. 
Edwards), my colleague from Texas.
  Mr. EDWARDS. Mr. Speaker, I rise in support of the Green amendment 
because I do not believe teachers should be penalized for teaching our 
children.
  Now, my colleague from California came up with a hypothetical 
example, but let me tell my colleagues what will happen in real life, 
not hypothetically, if the Green amendment is defeated.
  I now am representing Fort Hood in Texas, the only two-division Army 
installation in America, which has several thousand soldiers arriving 
in Iraq, and several thousand more per day. We will have up to 30,000 
soldiers from Fort Hood, Texas, fighting for our country in Iraq most 
likely in the next 2 months. Now, those soldiers fighting for us today 
and in the weeks ahead over there come back to Texas. And the bill that 
Congress, which I helped pass a decade ago, the Troops to Teacher bill, 
actually tries to encourage those military retirees, those soldiers 
fighting for us today in Iraq, to go into teaching. They are doing that 
all throughout the school system, educating the children of military 
soldiers in central Texas.
  Now, for those who want to defeat the Green amendment, let me just 
mention what that is really saying. That says that it is okay for these 
soldiers fighting in Iraq today for our country to pay Social Security 
taxes, and then when they come back to Texas and retire, they are going 
to have their Social Security benefits cut because some opposed the 
Green amendment. I think that is unfair. It is not only unfair to the 
soldiers to have their Social Security benefits docked because we want 
to defeat the Green amendment, it is unfair to the children of military 
families who will not have the benefit of those retired soldiers 
teaching in our classrooms.
  It was bad enough that the administration was trying to cut impact 
aid to help military kids' education during a time of war, it was worse 
yet when the Republican leadership pushed for a $28 billion cut in 
veterans benefits during a time of war; but now, to add insult to 
injury, I hope the teachers of Texas, Mr. Speaker, are listening to my 
Republican colleagues who, intended or not, would push a policy that 
will penalize soldiers fighting today in Iraq who want to teach our 
children tomorrow. That is wrong for our servicemen and women, it is 
wrong for the children of Texas, and it is wrong for this country.
  Mr. SHAW. Mr. Speaker, I yield myself such time as I may consume to 
comment that I think the gentleman is figuring that all those soldiers 
are going to come back to Texas. That is nonsense. This has nothing to 
do with our soldiers.
  Mr. Speaker, I yield 2 minutes to the gentleman from Georgia (Mr. 
Collins), a distinguished member of the Committee on Ways and Means.
  Mr. COLLINS. Mr. Speaker, I thank the gentleman for yielding me this 
time.
  Mr. THOMAS. Mr. Speaker, will the gentleman yield?
  Mr. COLLINS. I yield to the gentleman from California.
  Mr. THOMAS. Mr. Speaker, I thank the gentleman for yielding to me so 
that I might inform my friend, the gentleman from Texas (Mr. Green), 
that I am doing everything I can to fix the loopholes in the Tax Code. 
He is well aware that his party was in the majority for 40 years and 
they punched an awful lot of holes in that Tax Code. We are trying to 
plug it up just as rapidly as we can, but it will take a few more years 
to clean up 40 years of a mess
  Mr. COLLINS. Mr. Speaker, reclaiming my time, I rise in full support 
of the bill as presented by the gentleman from Florida (Mr. Shaw), the 
chairman of the Subcommittee on Social Security.
  With all the respect I have for the gentleman from Texas (Mr. Green) 
and what is he is attempting to do, I do have to oppose his amendment. 
I can appreciate what he is doing, what he is intending to do, but this 
is a very serious loophole that does exist. It has benefitted a number 
of teachers in Texas, it has benefitted a few from Georgia. There is a 
difference in how the teachers in each State went about it, but it is 
unfair to the majority of the population of this country who pay into 
the Social Security system based on their employment for years and 
years.
  This has nothing to do with the government pension offset. It has 
nothing to do with the windfall benefit. It is all about spousal 
benefits, and it is a loophole that needs to be closed. It is one that 
has existed for some time. The Social Security commissioner has 
recommended that it be closed, the Government Accounting Office has 
also recommended it be closed, and as the chairman of the full 
committee mentioned, it can have benefits of upwards of almost $100,000 
for those who may work 1 day or 1 year in the system that is covered by 
Social Security, having worked the majority of their time in a system 
that is not.
  This has caused a lot of the districts in Georgia, the school 
districts who do not participate in Social Security, to lose teachers 
to other districts who do, and it is a loophole that needs to be 
closed.

                              {time}  1345

  Mr. GREEN of Texas. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I respect the gentleman from Georgia (Mr. Collins) with 
whom I have gone on trips to see our military, and this issue is also 
about the military. As the gentleman from Texas (Mr. Edwards) who 
represents Fort Hood pointed out, this will impact them unless we 
reform the government pension offset.
  Mr. Speaker, I yield 1 minute to the gentleman from Texas (Mr. 
Reyes).
  Mr. REYES. Mr. Speaker, I rise today in support of the Green 
substitute for H.R. 743. This substitute amendment contains all of the 
good elements of H.R. 743, and eliminates one very negative element, 
section 418, which negatively affects teachers and other public 
servants in my district of El Paso, Texas. I have heard from countless 
teachers in my district regarding this bill who will have their Social 
Security widow's benefit reduced so severely that their financial well-
being will be devastated. The Green amendment fixes this.
  Mr. Speaker, in addition, H.R. 743 also affects school support 
personnel, police officers, firefighters, and other public servants. At 
a time when multibillion-dollar tax breaks are being offered to our 
country's top income earners, our teachers and other public servants 
should not be penalized. These are the very people we should be 
protecting.
  Finally, Mr. Speaker, I want to speak to our veterans. If this issue 
sounds a lot like their concurrent receipt issue, that is because it 
is. And it is interesting that it is the Republican leadership that 
opposes both of these issues. Too bad it is okay to pass billions in 
tax relief to the wealthy but continue to undermine our working 
families. I urge my colleagues to show support for our teachers and 
vote in favor of the Green substitute amendment.
  Mr. GREEN of Texas. Mr. Speaker, I yield 2 minutes to the gentleman 
from Texas (Mr. Turner).
  Mr. TURNER of Texas. Mr. Speaker, not too many months ago I had a 
teacher in my office in East Texas in the city of Lufkin, sitting 
across the desk, crying because she had learned she would not receive 
any of her husband's Social Security survivor benefit because she had 
been employed for her entire career as a teacher.
  The issue before us is not a discussion on loopholes, it is whether 
the

[[Page H2664]]

government pension offset is fair. Why should teachers, firefighters, 
law enforcement people, be denied their survivor benefits under Social 
Security simply because they have a government retirement benefit? The 
truth of the matter is if the lady sitting across the desk from me had 
worked for any other private company and had received a retirement 
benefit from them, she would still be eligible for her husband's 
survivor benefit.
  So I would invite the distinguished chairman of the Committee on Ways 
and Means, who suggested that the Green amendment slows the pressure to 
change the government pension offset, to merely join with us in trying 
to amend this legislation; or, in the alternative, to join with the 172 
other Members of this House in cosponsoring legislation, H.R. 594, that 
eliminates this unfair government pension offset.
  We are here today to fight for our Texas teachers, to fight for our 
Texas firefighters and our Texas law enforcement people who are 
unfairly disadvantaged by a government pension offset that says to 
them, because they work for the government and they have a separate 
retirement program, then they are going to be denied the very Social 
Security benefit that their spouse worked and earned. We hope that 
those who are opposing us today will take a second look, join with us 
and try to correct this unfair provision.
  Mr. SHAW. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I would point out to the gentleman that if somebody is 
enjoying a private pension in the private sector, they also paid into 
Social Security, which is something that the teachers that the 
gentleman is referring to are not doing.
  Mr. Speaker, I yield 3 minutes to the gentleman from Texas (Mr. 
Brady).
  Mr. BRADY of Texas. Mr. Speaker, there is a great deal of 
misinformation being spoken today. This has nothing to do with our 
soldiers overseas, because they do not have a loophole; or our 
firefighters or police officers, because they do not have a loophole. 
This does have a lot to do with the widows in America who do not have a 
loophole and are losing $450 million of their Social Security because 
one group has a loophole that no one else in America has.
  Let us look at the average family in Texas because we have heard a 
lot of these examples. This is where the husband has made $1,000 a year 
as his retirement and the wife's retirement is $700. When he passes 
away, what happens? For almost everyone in America where both people 
work in Social Security, that benefit is $1,000. For other families 
that work and have a government pension, like our firefighters and 
policeman, or Federal workers, for example, who paid into their own 
private plan, they keep more, $1,233. They get more than most families 
in America.
  But look at our Texas teacher. Because we have a loophole where they 
can go to work 1 day in Social Security and contribute $3 and collect 
over $100,000 more, they pull down $1,700 a month for widow's benefits 
that no one else in America can achieve. Not other teachers in other 
States, not the elderly in other States, no one in America. And because 
of this, this is draining not just $450 million now, but if we keep 
this loophole open, we will do more and more damage to everyone else in 
America who pays into Social Security.
  Let me make a final point about this. Everyone's Social Security is 
offset. Members have what is called a dual-entitlement offset. That is 
100 percent. Government workers is less, only 66 percent, two-thirds. 
Texas teachers, no offset whatsoever, so they receive many more 
benefits than the next-door neighbor who works hard, than Texas nurses, 
store clerks, the woman who takes care of our elderly in nursing homes, 
they do not have a loophole.
  We are not going to have an America where there are two classes of 
citizens, those who have loopholes in Social Security and those who do 
not. This is about protecting the integrity of our Social Security 
system for every generation. If we do not close this loophole, we have 
lost all claim to protecting Social Security for the future.
  Mr. GREEN of Texas. Mr. Speaker, I yield such time as she may consume 
to the gentlewoman from Texas (Ms. Jackson-Lee.)
  (Ms. JACKSON-LEE of Texas asked and was given permission to revise 
and extend her remarks.)
  Ms. JACKSON-LEE of Texas. Mr. Speaker, because I support teachers, 
firefighters, police, and the United States military, I rise in support 
of this amendment.
  Mr. Speaker, the Social Security Protection Act of 2003 was broken 
last time it came up on the floor. Many public servants in our 
districts noticed that and called and emailed and faxed us. We in 
Congress realized indeed it was broken and voted the bill down. But, 
here it is again--and it still has not been fixed. There is much good 
in this bill. If the Majority Leadership would take out the small error 
that will hurt our teachers and firefighters and police, this bill 
could be in front of the President soon. That would be a great service.
  I commend my colleague and neighbor from Houston for his work in 
addressing the needs of our teachers--who are some of the hardest hit--
in Texas. The Green Substitute will preserve all the good in the Social 
Security Protection Act, that so many of us have worked together in 
bipartisan fashion, to create. It will simply remove a single offensive 
provision, that was added in at the eleventh hour, and hits hard a 
group of people that I can't imagine anyone wanting to hit right now--
when we are trying to improve our schools, when we are trying to 
bolster our first response capabilities, and when economic uncertainty 
abounds.
  The Government Pension Offset (GPO) reduces or eliminates a Social 
Security widow's benefit if the widow is eligible for a pension based 
on a state, local or federal job that was not covered by 
Social Security. The GPO affects many individuals, but is especially 
harmful for teachers, police officers, and firefighters, and is 
particularly burdensome for lower income workers and women. A provision 
in current law, however, allows some state and local government 
employees to escape the application of the GPO if they switch jobs at 
the end of their government careers.

  It is sad that we make dedicated employees jump through such hoops to 
get the benefits they deserve. I would like to totally revisit the GPO, 
but know that today is not the day to do it. Today, the best we can do 
is to keep this small loophole open and allow good people to continue 
to go into public service. I usually appreciate closing loopholes, but 
this one is too valuable to our schools and first responders.
  As it stands, H.R. 743 modifies the last-day-exemption clause by 
requiring public servants to work an additional five years in order to 
receive a full spousal benefit. This legislation does nothing to remedy 
the GPO to make it fairer for public servants. There are many people 
who are interested in going into public service as a second career, but 
may not be able to work and then switch employment for five years. 
These people may not then be able to afford to serve. This is 
ridiculous at a time when needs are so great in our society.
  The Green amendment strips this one, hidden, offensive provision in 
this otherwise non-controversial bill. I urge my colleagues to support 
teachers, firefighters, police officers, and other public servants by 
supporting the Green amendment.
  For example, last month I received a call from one woman in my 
District who was a teacher earlier in life. Her husband recently passed 
away and she has been contemplating going back into teaching. But she 
has been warned that she could actually jeopardize her financial future 
by going to work. As a widow, she will be entitled to her husband's 
social security benefits. However, if she starts to teach in a school 
district with a government non-Social Security pension, she could lose 
$360 per month in retirement benefits--over $4000 per year.

  Why should she risk it? If H.R. 743 passes today as is, it won't be 
only she that loses. It will be our nation's children who lose--an 
experienced, intelligent teacher. The Green Substitute will allow her 
to help leave no child behind.
  I will support the Green Substitute to H.R. 743, and urge my 
colleagues to do the same.
  Mr. GREEN of Texas. Mr. Speaker, I yield 1 minute to the gentleman 
from Texas (Mr. Ortiz).
  (Mr. ORTIZ asked and was given permission to revise and extend his 
remarks.)
  Mr. ORTIZ. Mr. Speaker, the thing that we are trying to correct here 
today is we do not have a problem with the 50 school districts that pay 
Social Security, but we do have a problem with the 1,100 or more school 
districts where they are not allowed to pay Social Security. This is 
why the Green

[[Page H2665]]

amendment is a good amendment. We are trying to correct a deficiency 
that exists.
  We have a lot of soldiers and sailors who are fighting this war. They 
do pay Social Security. When they come back and they decide to take up 
the profession of teaching, they are going to lose their benefits. This 
is a true fact. This is what we are trying to correct.
  The teachers across the State of Texas are mostly women, and they are 
not wealthy people. If I had worked so many years and my spouse dies, I 
should be qualified to receive what my husband has paid into.
  Mr. GREEN of Texas. Mr. Speaker, I yield 2 minutes to the gentleman 
from Texas (Mr. Sandlin), a member of the Committee on Ways and Means.
  Mr. SANDLIN. Mr. Speaker, today the House stands to make a choice. We 
must choose to support our widowed teachers and public employees, or we 
choose to oppose them. The choice is ours. I am appalled that our 
friends on the other side of the aisle would take a stand against our 
teachers and claim that the teachers are receiving full spousal 
benefits and are engaged in a gimmick or a trick or a fraud. Obtaining 
spousal benefits is not a trick or a fraud. It is a payment for an 
entire lifetime of work by a spouse. It is a payment for an entire 
lifetime of a man and woman working together.
  Saying that teachers receive Social Security for working 1 day of 
work is simply not true, and our friends on the other side of the aisle 
know it and it is embarrassing for them to say that. The real fraud in 
this is that the Democrats on the Committee on Ways and Means offered 
to fix this section by using the language of the Republicans if they 
would address the GPO. The Republicans said no. Clearly the Green 
amendment points out the total absurdity of the GPO. It is quite 
simple.
  Here is the way, the Republican plan. If someone works for an 
insurance company, no offset. If someone works for a pharmaceutical 
company, no offset. If someone works for an HMO, no offset. But if that 
person is a teacher, there is an offset and their spouse's lifetime of 
work is absolutely meaningless. At least our friends on the other side 
of the aisle are consistent. They believe that neither the veterans nor 
the teachers should receive the benefits that they have earned from a 
lifetime of work. We saw that yesterday and we are seeing that today. 
Teachers work hard, they follow the rules. They are being rewarded for 
a lifetime of work with their spouse.
  We should not be involved in changing the rules of the game in the 
middle of the game. Let us stand up for our teachers. Our teachers 
should be rewarded. Our teachers should not be punished. Let us support 
the Green amendment and do what we ought to do in this House.
  Mr. SHAW. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman from 
Missouri (Mr. Hulshof).
  Mr. HULSHOF. Mr. Speaker, I would say to the gentleman from Texas 
(Mr. Turner), that tearful constituent of his is probably not scheming 
to game the system.
  I would say to the gentleman from Texas (Mr. Edwards), I think it is 
a bit disingenuous to invoke our troops and our firefighters.
  I would say to the gentleman from Texas (Mr. Green) who offers the 
amendment, the amendment would strip section 418 out of the underlying 
bill.
  And I would again say to the gentleman from Texas (Mr. Sandlin) who 
just spoke, would the following hypothetical be considered a gimmick, 
trick or fraud: A university professor who works his entire life as a 
university professor, works a single day as a janitor making $6 an 
hour, an 8-hour day, $48, and out of that paycheck, there is a $3 FICA 
withholding, is it a gimmick, a trick or a fraud for that $3 FICA 
withholding to then translate into roughly $100,000; $5,000 a year for 
20 years of retirement?
  Unfortunately, Mr. Speaker, that is not a gimmick, trick, or fraud. 
It is not even a hypothetical. It is a real-life example of something 
that has occurred that needs to be changed. A real janitor would not 
see that $100,000.
  Mr. GREEN of Texas. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, let me say they are not receiving the benefits because 
of that 1 day, they are receiving them because they were married for at 
least 10 years to someone who paid into Social Security. That is the 
reason that they are receiving it. It is not hypothetical. We have 
people who have paid into Social Security for 40 years, and their 
spouses have received nothing. That is wrong.
  Mr. Speaker, I yield 1 minute to the gentleman from Texas (Mr. 
Edwards).
  Mr. EDWARDS. Mr. Speaker, my Republican colleagues may not like the 
truth, but they cannot run from it. The truth is that by defeating the 
Green amendment, what they are saying to some of the thousands of 
soldiers from my district in the Iraqi theater today, that if they come 
back home to Texas and take advantage of the Troops to Teachers program 
passed by Congress to encourage them to become teachers, then their 
Social Security benefits are going to be reduced or eliminated. That is 
wrong. It is unfair. It discourages good people from going into the 
teaching profession. And I can tell Members, the school districts in my 
district value highly having these retired Army soldiers teaching in 
the classrooms. The other side may not like the facts, but they are 
going to have to accept them.

                              {time}  1400

  Mr. SHAW. Mr. Speaker, I yield 30 seconds to the gentleman from Texas 
(Mr. Brady).
  Mr. BRADY of Texas. Mr. Speaker, others may not like the facts 
either. My younger brother has been deployed as an Army medic in the 
67th Brigade. He will be watching out for the 4th Infantry Division in 
the Persian Gulf, his second tour of duty. He does not have a loophole. 
He cannot work 1 day and collect $100,000. Yes, he has an offset like 
the rest of America has an offset. When we hear this said no one else 
has an offset, it is absolutely untrue. What we are trying to defend 
here is some of America that has a loophole and all the rest of us, 
firefighters, widows, the elderly have no loophole. We are protecting 
the security of Social Security.
  Mr. GREEN of Texas. Mr. Speaker, I yield myself such time as I may 
consume.
  To my really good friend and neighbor, that is the whole point of the 
debate. We should reform the government pension offset and not punish 
those who have found a way to deal with it.
  Mr. Speaker, I yield 1 minute to the gentlewoman from Dallas, Texas 
(Ms. Eddie Bernice Johnson).
  (Ms. EDDIE BERNICE JOHNSON of Texas asked and was given permission to 
revise and extend her remarks.)
  Ms. EDDIE BERNICE JOHNSON of Texas. Mr. Speaker, I rise in support of 
the Green amendment. It is interesting as we sit here and listen to 
each other that the teaching profession is probably one of the most 
important professions there is. Not a single person here has gotten 
here without having some teachers. We do not pay them very much. It is 
one of the low-paying professions. And yet we do not want them to 
receive their spouses' Social Security. My Social Security is going to 
be offset with a pension. I am willing to allow that to go for making 
sure that the teachers after a long career of teaching can have a 
retirement, scraping together the pennies so they can live without 
going on a system that is no longer called welfare because we do not 
have it.
  Mr. SHAW. Mr. Speaker, I reserve the balance of my time to close.
  Mr. GREEN of Texas. Mr. Speaker, I think I have the right to close, 
and I reserve the balance of my time.
  The SPEAKER pro tempore (Mr. Simpson). The gentleman from Florida has 
the right to close.
  The gentleman from Texas has 2\1/2\ minutes remaining, and the 
gentleman from Florida has 2 minutes remaining.
  Mr. GREEN of Texas. Mr. Speaker, I yield myself such time as I may 
consume.
  The reason I am offering this amendment is because the underlying 
bill provides for this section 418. There are a lot of good provisions 
in the underlying bill, and people can vote for my amendment and still 
vote for the bill. There are other States with public employees like 
Texas. It just impacts Texas more than I guess other States, maybe 
Georgia or somewhere else, that reduces our spousal benefits because we 
have local governments that do not participate in Social Security. Only 
50 of our school districts, the gentleman

[[Page H2666]]

from Texas (Mr. Sam Johnson), participate; but we have over 1,100 
school districts, and that is a local decision. My wife as a teacher 
did not decide she would go to work for someone who paid Social 
Security. She went to work because she wanted to be a teacher, and that 
is the frustration because no one thinks about it until they realize 
later in their careers, wait a minute, I have been married for all 
these years and I am going to get penalized if my husband passes away?
  Marriage is a contract. It is also a contract that says they have 
worked together for all those years and yet if they happen to be a 
public school teacher, tough luck for that marriage contract. They do 
not benefit. They get punished because they worked as a teacher and 
they did not pay into Social Security, but their spouse did, their 
husband did. Again, we are talking about 80 percent of the public 
schoolteachers in Texas and I am sure nation-wide, and I am sure this 
is a nation-wide problem. It is just that Texas has found a way around 
it, and yet you are going to punish Texas, and yet Georgia and other 
States have the same problem. Almost all these people are eligible for 
Medicare through their husbands, but none of them are eligible for 
their spousal benefit because of the government pension offset. The GPO 
is wrong, and I would not be here today if we had a bill come out to 
deal with the GPO on a fair basis, the government pension offset; but 
we are not.
  I do not want to keep this loophole. I want it to treat fairly all 
the government employees who are being treated badly, but it affects 
teachers because they are the most in population. It affects 
firefighters and police officers also; but after a lifetime of being 
underpaid and they depend on their husband's Social Security or widow's 
benefits if they pass away and yet we take it away, and it is just 
frustrating to see that happen and to punish people. Yes, in Texas we 
found a way to deal with this wrong and you are punishing teachers 
because we have dealt with it instead of dealing with it in Congress, 
and that is what is wrong.
  Mr. SHAW. Mr. Speaker, I yield myself the balance of my time.
  Mr. Speaker, people watching this debate may have noticed that the 
only speakers in favor of the gentleman from Texas's amendment are 
Members from the State of Texas. We have seen even Jessica Lynch, an 
American hero who has just been freed as a prisoner of war, brought 
into this debate. Jessica is going back to West Virginia to teach, and 
she is not going to get this loophole. We need to wipe it out. It is 
unfair, and it is gaming the system.
  We have heard about people in the private sector, employees of HMOs, 
employees of automobile companies and all, they do not have the pension 
offset. They do not have it because they paid into Social Security. Why 
should they have an offset if they have paid into Social Security?
  We have heard about the soldiers coming home. What type of a 
desperate argument is this? This has nothing to do with the soldiers 
anymore than someone right now who is struggling to get through college 
to go to teach themselves. Ladies and gentlemen, I will tell it to the 
48 other States other than Texas and Georgia that you would be giving 
public employees in two States an advantage that they do not receive in 
the rest of the country. You will be giving to these teachers and these 
firefighters something that their teachers and their firefighters will 
not have. This is basically unfair. We are going to correct it.
  We have heard about the pension offset. All of us have been talked 
about that. Our Federal employees, our retired Federal employees, they 
have all been into our office talking about the pension offset. That is 
going to cost us $9 billion if we are able to do something with it, and 
I would like to address that; and Mr. Matsui and I have agreed to have 
hearings on it, and we are going to look to ways in order to try to do 
that, but that has nothing to do with this vote, absolutely nothing to 
do with it. This has only to do with a handful of public employees who 
are gaming the system in the State of Texas and even a smaller number 
in the State of Georgia. Vote ``no'' on the Green amendment. Vote 
``yes'' on the bill. It is a good bill, and it is time that we clean 
this up.
  The SPEAKER pro tempore. Pursuant to House Resolution 168, the 
previous question is ordered on the bill, as amended, and on the 
further amendment by the gentleman from Texas (Mr. Green).
  The question is on the amendment in the nature of a substitute 
offered by the gentleman from Texas (Mr. Green).
  The question was taken; and the Speaker pro tempore announced that 
the noes appeared to have it.
  Mr. GREEN of Texas. Mr. Speaker, I object to the vote on the ground 
that a quorum is not present and make the point of order that a quorum 
is not present.
  The SPEAKER pro tempore. Evidently a quorum is not present.
  The Sergeant at Arms will notify absent Members.
  The vote was taken by electronic device, and there were--yeas 196, 
nays 228, not voting 10, as follows:

                             [Roll No. 100]

                               YEAS--196

     Ackerman
     Alexander
     Allen
     Andrews
     Baca
     Baldwin
     Ballance
     Becerra
     Bell
     Berkley
     Berman
     Berry
     Bilirakis
     Bishop (GA)
     Bishop (NY)
     Blumenauer
     Bonilla
     Boswell
     Boucher
     Boyd
     Brady (PA)
     Brown (OH)
     Brown, Corrine
     Burgess
     Burns
     Capps
     Capuano
     Cardin
     Cardoza
     Carson (IN)
     Carson (OK)
     Carter
     Case
     Clay
     Clyburn
     Conyers
     Costello
     Crowley
     Cummings
     Davis (AL)
     Davis (CA)
     Davis (FL)
     Davis (IL)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Deutsch
     Dingell
     Doggett
     Edwards
     Emanuel
     Engel
     Eshoo
     Etheridge
     Evans
     Farr
     Fattah
     Filner
     Ford
     Frank (MA)
     Frost
     Gillmor
     Gonzalez
     Gordon
     Granger
     Green (TX)
     Grijalva
     Gutierrez
     Hall
     Harman
     Hastings (FL)
     Hefley
     Hill
     Hinchey
     Hinojosa
     Hoeffel
     Holt
     Honda
     Hooley (OR)
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     John
     Johnson (IL)
     Johnson, E. B.
     Jones (OH)
     Kaptur
     Kennedy (RI)
     Kildee
     Kilpatrick
     Kind
     Kleczka
     Kucinich
     Lampson
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     Lee
     Levin
     Lewis (GA)
     Lofgren
     Lowey
     Lucas (KY)
     Lynch
     Majette
     Maloney
     Markey
     Marshall
     Matheson
     Matsui
     McCarthy (NY)
     McCollum
     McDermott
     McGovern
     McIntyre
     McNulty
     Meehan
     Meek (FL)
     Meeks (NY)
     Menendez
     Michaud
     Millender-McDonald
     Miller (NC)
     Miller, George
     Mollohan
     Moore
     Moran (VA)
     Nadler
     Napolitano
     Neal (MA)
     Oberstar
     Olver
     Ortiz
     Owens
     Pallone
     Pascrell
     Pastor
     Paul
     Payne
     Pelosi
     Peterson (MN)
     Price (NC)
     Rahall
     Rangel
     Reyes
     Rodriguez
     Ross
     Rothman
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Sanchez, Linda T.
     Sanchez, Loretta
     Sanders
     Sandlin
     Schakowsky
     Schiff
     Scott (GA)
     Scott (VA)
     Serrano
     Sherman
     Skelton
     Slaughter
     Solis
     Spratt
     Stark
     Stenholm
     Strickland
     Stupak
     Tanner
     Tauscher
     Thompson (CA)
     Thompson (MS)
     Tierney
     Towns
     Turner (TX)
     Udall (CO)
     Udall (NM)
     Van Hollen
     Velazquez
     Visclosky
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Wexler
     Woolsey
     Wu
     Wynn

                               NAYS--228

     Abercrombie
     Aderholt
     Akin
     Bachus
     Baird
     Baker
     Ballenger
     Bartlett (MD)
     Barton (TX)
     Bass
     Beauprez
     Bereuter
     Biggert
     Bishop (UT)
     Blackburn
     Blunt
     Boehlert
     Boehner
     Bonner
     Bono
     Boozman
     Bradley (NH)
     Brady (TX)
     Brown (SC)
     Brown-Waite, Ginny
     Burr
     Burton (IN)
     Buyer
     Calvert
     Camp
     Cannon
     Cantor
     Capito
     Castle
     Chabot
     Chocola
     Coble
     Cole
     Collins
     Cooper
     Cox
     Cramer
     Crane
     Crenshaw
     Cubin
     Culberson
     Cunningham
     Davis, Jo Ann
     Davis, Tom
     Deal (GA)
     DeLay
     DeMint
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dicks
     Dooley (CA)
     Doolittle
     Doyle
     Dreier
     Duncan
     Dunn
     Ehlers
     Emerson
     English
     Everett
     Feeney
     Ferguson
     Flake
     Fletcher
     Foley
     Forbes
     Fossella
     Franks (AZ)
     Frelinghuysen
     Gallegly
     Garrett (NJ)
     Gerlach
     Gibbons
     Gilchrest
     Gingrey
     Goode
     Goodlatte
     Goss
     Graves
     Green (WI)
     Greenwood
     Gutknecht
     Harris
     Hart
     Hastings (WA)
     Hayes
     Hayworth
     Hensarling
     Herger
     Hobson
     Hoekstra
     Holden
     Hostettler
     Houghton
     Hulshof
     Hunter
     Isakson
     Issa
     Istook
     Janklow
     Jenkins
     Johnson (CT)
     Johnson, Sam
     Jones (NC)
     Kanjorski
     Keller
     Kelly
     Kennedy (MN)
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kline
     Knollenberg
     Kolbe
     LaHood
     Latham
     LaTourette
     Leach
     Lewis (CA)
     Lewis (KY)
     Linder
     Lipinski
     LoBiondo
     Lucas (OK)
     Manzullo
     McCotter
     McCrery
     McHugh
     McKeon
     Mica
     Miller (FL)

[[Page H2667]]


     Miller (MI)
     Miller, Gary
     Moran (KS)
     Murphy
     Murtha
     Musgrave
     Myrick
     Ney
     Northup
     Norwood
     Nunes
     Nussle
     Obey
     Osborne
     Ose
     Otter
     Oxley
     Pearce
     Pence
     Peterson (PA)
     Petri
     Pickering
     Pitts
     Platts
     Pombo
     Pomeroy
     Porter
     Portman
     Pryce (OH)
     Putnam
     Quinn
     Radanovich
     Ramstad
     Regula
     Rehberg
     Renzi
     Reynolds
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Ros-Lehtinen
     Royce
     Ryan (WI)
     Ryun (KS)
     Sabo
     Saxton
     Schrock
     Sensenbrenner
     Sessions
     Shadegg
     Shaw
     Shays
     Sherwood
     Shimkus
     Shuster
     Simmons
     Simpson
     Smith (MI)
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Snyder
     Stearns
     Sullivan
     Sweeney
     Tancredo
     Tauzin
     Taylor (MS)
     Taylor (NC)
     Terry
     Thomas
     Thornberry
     Tiahrt
     Tiberi
     Toomey
     Turner (OH)
     Upton
     Vitter
     Walsh
     Wamp
     Weldon (FL)
     Weldon (PA)
     Weller
     Whitfield
     Wicker
     Wilson (NM)
     Wilson (SC)
     Wolf
     Young (AK)
     Young (FL)

                             NOT VOTING--10

     Barrett (SC)
     Combest
     Davis (TN)
     Gephardt
     Hyde
     McCarthy (MO)
     McInnis
     Nethercutt
     Souder
     Walden (OR)


                Announcement by the Speaker Pro Tempore

  The SPEAKER pro tempore (Mr. Simpson) (during the vote). Members are 
reminded that there are 2 minutes remaining on this vote.

                              {time}  1428

  Ms. GINNY BROWN-WAITE of Florida, and Messrs. SHERWOOD, CRENSHAW, 
BACHUS, GARY G. MILLER of California, MCHUGH, REYNOLDS, ISTOOK, PORTER, 
DOOLEY of California and REGULA changed their vote from ``yea'' to 
``nay.''
  Mrs. JONES of Ohio and Mr. HEFLEY changed their vote from ``nay'' to 
``yea.''
  So the amendment in the nature of a substitute was rejected.
  The result of the vote was announced as above recorded.
  The SPEAKER pro tempore. The question is on the engrossment and third 
reading of the bill.
  The bill was ordered to be engrossed and read a third time, and was 
read the third time.

                              {time}  1430


            Motion to Recommit Offered by Mr. Green of Texas

  Mr. GREEN of Texas. Mr. Speaker, I offer a motion to recommit.
  The SPEAKER pro tempore (Mr. Simpson). Is the gentleman opposed to 
the bill?
  Mr. GREEN of Texas. Yes, Mr. Speaker.
  The SPEAKER pro tempore. The Clerk will report the motion to 
recommit.
  The Clerk read as follows:

       Mr. Green of Texas moves to recommit the bill, H.R. 743, to 
     the Committee on Ways and Means with instructions to report 
     the same back to the House promptly with an amendment 
     addressing the concerns of Federal, State, and local 
     government employees about the government pension offset 
     under title II of the Social Security Act.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Texas (Mr. Green) is recognized for 5 minutes in support of his motion.
  Mr. GREEN of Texas. Mr. Speaker, I know a lot of Members thought that 
last battle was just because of Texas teachers, firefighters, or police 
officers; and it is, but simply because Texas has found a way to deal 
with the government pension offset. Another State, Georgia, has tried 
and is doing the same thing.
  We need to reform the government pension offset. A lot of Members 
have told me, we are going to vote for you, we are going to vote 
against you, but we need to reform it. This is what this motion to 
recommit says, to report back. It instructs the Committee on Ways and 
Means with instructions to report the same back to the House promptly 
with an amendment addressing the concerns of Federal, State, and local 
employees about the government pension offset under title II of the 
Social Security Act.
  During the last 3 or 4 years, there have been bills introduced in 
this House that have been bipartisan. We have had at times 218 
cosponsors of legislation to reform the government pension offset and 
have not had a hearing.
  We have a bill right now, H.R. 594, that has at least 50 Republican 
cosponsors, and has about 175, and I think it has only been out for a 
few weeks for cosponsorship, to reform the government pension offset. 
This is our way to use our rules to be able to say to one of our 
committees, whether it is my Committee on Energy and Commerce or 
something else, to say we want to reform the government pension offset. 
That is why we want to send this bill back. They can reform it and send 
it back to us. That is what this is about.
  If Members want to reform the government pension offset, if they want 
to take a benefit for not only teachers in Texas but teachers all 
across the country, Federal employees, military, because the government 
pension offset affects everyone who is a public employee, then we need 
to reform it. That is the job of our committee, the Committee on Ways 
and Means.
  I would hope that Members would vote for this motion. That way, we 
would actually see this vote on the floor of the House that I have not 
seen until the last few weeks dealing with the government pension 
offset.
  Mr. Speaker, I yield 1 minute to my colleague, the gentleman from 
Texas (Mr. Doggett).
  Mr. DOGGETT. Mr. Speaker, about 200 of us have regularly signed on as 
cosponsors to the legislation of our colleague, the gentleman from 
California (Mr. McKeon), to repeal the Government Pension Offset. In 
the Committee on Ways and Means, a more modest proposal would simply 
cut the government pension offset in half. It is authored by the 
gentleman from Florida (Mr. Shaw) and was joined by a number of 
Republicans on that committee.
  In the committee, we sought not to leave some special provision that 
Texas teachers have used to protect themselves. We said instead, 
``solve that problem.'' We did not use our language to correct the 
government pension offset; but we took verbatim the language of the 
gentleman from Florida (Mr. Shaw), his words, joined by four or five 
Republican members of the Committee.
  This motion would permit us to go back and get the correction that 
all of us have said we want. I do not believe those who suffer from 
this offset want merely a promise in every pot. They do not want just a 
committee hearing; they want action. With this motion to recommit, we 
would get that action and get it promptly for all the firefighters, 
police officers, and teachers in all the 50 States who deserve to have 
that done.
  Mr. GREEN of Texas. Mr. Speaker, it is frustrating, because a lot of 
us have heard from our public employees across the country and in our 
districts. They are frustrated when they find out they get penalized, 
even though they did pay into Social Security. Or in the case of 
teachers in Texas who do not have the option because of their local 
school district decision, they do not even receive their widow's 
benefits without such a penalty. That is what is frustrating.
  We need to reform the government pension offset. That is what the 
committee should do, and that is what this motion to instruct would do. 
I urge an ``aye'' vote.
  Mr. THOMAS. Mr. Speaker, I rise in opposition to the motion to 
recommit.
  The SPEAKER pro tempore. The gentleman from California (Mr. Thomas) 
is recognized for 5 minutes.
  Mr. THOMAS. Mr. Speaker, the gentleman from California who is 
interested in dealing with the teachers' issues is named Buck McKeon. 
We have talked about him as a good $1 bill, the gentleman from 
California (Mr. McKeon).
  I want Members to know this motion to recommit is a $3 bill. If 
Members have never seen a $3 bill, all Members have to do is look at 
this motion to recommit. As we all know, there is no such thing as 
legal tender that is a $3 bill.
  What this motion to recommit does is it kills the bill. I ask the 
freshmen to listen carefully. If this motion to recommit said ``report 
the same back to the House forthwith,'' a little word, ``forthwith'', 
what the gentleman from Texas (Mr. Green) was talking about could 
possibly occur. But he used the word ``promptly'' knowingly, because 
they know that a motion to recommit with the word ``promptly'' in it 
kills the bill.
  Let me tell the Members what this motion to recommit really does: it 
says that the Social Security Administration cannot withhold tax 
refunds of people who cheat other taxpayers. It

[[Page H2668]]

says that the Social Security Administration cannot impose monetary 
penalties on those who mismanage benefits. If says that we cannot 
create new civil monetary penalties for Social Security fraud.
  In other words, if people are for the good stuff that is in the bill, 
they are against this motion to recommit. The motion to recommit cannot 
add what they said it does because of the way it is written, it is very 
simple.
  There was not a lot of honest debate on the amendment, and this 
motion to recommit is not an honest amendment to recommit. It is a 
motion to kill. Let us vote ``no'' on this so we can get on to the 
basic business of passing a very important and helpful bill. Vote 
``no'' on this $3 bill, the motion to recommit.


                         parliamentary inquiry

  Mr. GREEN of Texas. Parliamentary inquiry, Mr. Speaker.
  The SPEAKER pro tempore. The gentleman may inquire.
  Mr. GREEN of Texas. I do not know about a $3 bill, but maybe the 
Committee on Ways and Means could get one printed.
  Mr. Speaker, it is my understanding that under our House rules that 
we are required to use the word ``promptly'' instead of ``forthwith'' 
because we now have had a budget resolution. I would ask, is that 
correct?
  The SPEAKER pro tempore. The Chair cannot anticipate the propriety of 
another kind of motion.
  Mr. GREEN of Texas. I withdraw the parliamentary inquiry, Mr. 
Speaker.
  The SPEAKER pro tempore. Without objection, the previous question is 
ordered on the motion to recommit.
  There was no objection.
  The SPEAKER pro tempore. The question is on the motion to recommit.
  The question was taken; and the Speaker pro tempore announced that 
the noes appeared to have it.


                             Recorded Vote

  Mr. GREEN of Texas. Mr. Speaker, I demand a recorded vote.
  A recorded vote was ordered.
  The SPEAKER pro tempore. Pursuant to clause 9 of rule XX, the Chair 
will reduce to 5 minutes the minimum time for any electronic vote on 
the question of passage.
  The vote was taken by electronic device, and there were--ayes 203, 
noes 220, not voting 11, as follows:

                             [Roll No. 101]

                               AYES--203

     Abercrombie
     Ackerman
     Alexander
     Allen
     Andrews
     Baca
     Baird
     Baldwin
     Ballance
     Becerra
     Bell
     Berkley
     Berman
     Berry
     Bishop (GA)
     Bishop (NY)
     Blumenauer
     Boswell
     Boucher
     Boyd
     Brady (PA)
     Brown (OH)
     Brown, Corrine
     Capps
     Capuano
     Cardin
     Cardoza
     Carson (IN)
     Carson (OK)
     Case
     Clay
     Clyburn
     Conyers
     Cooper
     Costello
     Cramer
     Crowley
     Cummings
     Davis (AL)
     Davis (CA)
     Davis (FL)
     Davis (IL)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Deutsch
     Dicks
     Dingell
     Doggett
     Dooley (CA)
     Doyle
     Edwards
     Emanuel
     Engel
     Eshoo
     Etheridge
     Evans
     Farr
     Fattah
     Filner
     Ford
     Frank (MA)
     Frost
     Gonzalez
     Gordon
     Green (TX)
     Grijalva
     Gutierrez
     Hall
     Harman
     Hastings (FL)
     Hill
     Hinchey
     Hinojosa
     Hoeffel
     Holden
     Holt
     Honda
     Hooley (OR)
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     John
     Johnson, E. B.
     Jones (OH)
     Kanjorski
     Kaptur
     Kennedy (RI)
     Kildee
     Kilpatrick
     Kind
     Kleczka
     Kucinich
     Lampson
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     Lee
     Levin
     Lewis (GA)
     Lipinski
     Lofgren
     Lowey
     Lucas (KY)
     Lynch
     Majette
     Maloney
     Markey
     Marshall
     Matheson
     Matsui
     McCarthy (NY)
     McCollum
     McDermott
     McGovern
     McIntyre
     McNulty
     Meehan
     Meek (FL)
     Meeks (NY)
     Menendez
     Michaud
     Millender-McDonald
     Miller (NC)
     Miller, George
     Mollohan
     Moore
     Moran (VA)
     Murtha
     Nadler
     Napolitano
     Neal (MA)
     Oberstar
     Obey
     Olver
     Ortiz
     Owens
     Pallone
     Pascrell
     Pastor
     Payne
     Pelosi
     Peterson (MN)
     Pomeroy
     Price (NC)
     Rahall
     Rangel
     Reyes
     Rodriguez
     Ross
     Rothman
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Sabo
     Sanchez, Linda T.
     Sanchez, Loretta
     Sanders
     Sandlin
     Schakowsky
     Schiff
     Scott (GA)
     Scott (VA)
     Serrano
     Sherman
     Skelton
     Slaughter
     Smith (WA)
     Snyder
     Solis
     Spratt
     Stark
     Stenholm
     Strickland
     Stupak
     Tanner
     Tauscher
     Taylor (MS)
     Thompson (CA)
     Thompson (MS)
     Tierney
     Towns
     Turner (TX)
     Udall (CO)
     Udall (NM)
     Van Hollen
     Velazquez
     Visclosky
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Wexler
     Woolsey
     Wu
     Wynn

                               NOES--220

     Aderholt
     Akin
     Bachus
     Baker
     Ballenger
     Barrett (SC)
     Bartlett (MD)
     Barton (TX)
     Bass
     Beauprez
     Bereuter
     Biggert
     Bilirakis
     Bishop (UT)
     Blackburn
     Blunt
     Boehlert
     Boehner
     Bonilla
     Bonner
     Bono
     Boozman
     Bradley (NH)
     Brady (TX)
     Brown (SC)
     Brown-Waite, Ginny
     Burgess
     Burns
     Burr
     Burton (IN)
     Buyer
     Calvert
     Camp
     Cannon
     Cantor
     Capito
     Carter
     Castle
     Chabot
     Chocola
     Coble
     Cole
     Collins
     Cox
     Crane
     Crenshaw
     Cubin
     Culberson
     Cunningham
     Davis, Jo Ann
     Davis, Tom
     Deal (GA)
     DeLay
     DeMint
     Diaz-Balart, L.
     Diaz-Balart, M.
     Doolittle
     Dreier
     Duncan
     Dunn
     Ehlers
     Emerson
     English
     Everett
     Feeney
     Ferguson
     Flake
     Fletcher
     Foley
     Forbes
     Fossella
     Franks (AZ)
     Frelinghuysen
     Gallegly
     Garrett (NJ)
     Gerlach
     Gibbons
     Gilchrest
     Gillmor
     Gingrey
     Goode
     Goodlatte
     Goss
     Granger
     Graves
     Green (WI)
     Greenwood
     Gutknecht
     Harris
     Hart
     Hastings (WA)
     Hayes
     Hayworth
     Hefley
     Hensarling
     Herger
     Hobson
     Hoekstra
     Hostettler
     Houghton
     Hulshof
     Hunter
     Isakson
     Issa
     Istook
     Janklow
     Jenkins
     Johnson (CT)
     Johnson (IL)
     Johnson, Sam
     Jones (NC)
     Keller
     Kelly
     Kennedy (MN)
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kline
     Knollenberg
     Kolbe
     LaHood
     Latham
     LaTourette
     Leach
     Lewis (CA)
     Lewis (KY)
     Linder
     LoBiondo
     Lucas (OK)
     Manzullo
     McCotter
     McCrery
     McHugh
     McKeon
     Mica
     Miller (FL)
     Miller (MI)
     Miller, Gary
     Moran (KS)
     Murphy
     Musgrave
     Myrick
     Ney
     Northup
     Norwood
     Nunes
     Nussle
     Osborne
     Ose
     Otter
     Oxley
     Pearce
     Pence
     Peterson (PA)
     Petri
     Pickering
     Platts
     Pombo
     Porter
     Portman
     Pryce (OH)
     Putnam
     Quinn
     Radanovich
     Ramstad
     Regula
     Rehberg
     Renzi
     Reynolds
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Ros-Lehtinen
     Royce
     Ryan (WI)
     Ryun (KS)
     Saxton
     Schrock
     Sensenbrenner
     Sessions
     Shadegg
     Shaw
     Shays
     Sherwood
     Shimkus
     Shuster
     Simmons
     Simpson
     Smith (MI)
     Smith (NJ)
     Smith (TX)
     Stearns
     Sullivan
     Sweeney
     Tancredo
     Tauzin
     Taylor (NC)
     Terry
     Thomas
     Thornberry
     Tiahrt
     Tiberi
     Toomey
     Turner (OH)
     Upton
     Vitter
     Walsh
     Wamp
     Weldon (FL)
     Weldon (PA)
     Weller
     Whitfield
     Wicker
     Wilson (NM)
     Wilson (SC)
     Wolf
     Young (AK)
     Young (FL)

                             NOT VOTING--11

     Combest
     Davis (TN)
     Gephardt
     Hyde
     McCarthy (MO)
     McInnis
     Nethercutt
     Paul
     Pitts
     Souder
     Walden (OR)


                Announcement by the Speaker Pro Tempore

  The SPEAKER pro tempore (during the vote). Members are advised that 
approximately 2 minutes remain in this vote.

                              {time}  1454

  So the motion to recommit was rejected.
  The result of the vote was announced as above recorded.
  The SPEAKER pro tempore (Mr. Simpson). The question is on the passage 
of the bill.
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.


                             Recorded Vote

  Mr. SHAW. Mr. Speaker, I demand a recorded vote.
  A recorded vote was ordered.
  The SPEAKER pro tempore. This will be a 5-minute vote.
  The vote was taken by electronic device, and there were--ayes 396, 
noes 28, not voting 10, as follows:

                             [Roll No. 102]

                               AYES--396

     Abercrombie
     Ackerman
     Aderholt
     Akin
     Alexander
     Allen
     Andrews
     Baca
     Bachus
     Baird
     Baker
     Baldwin
     Ballance
     Ballenger
     Barrett (SC)
     Bartlett (MD)
     Barton (TX)
     Bass
     Beauprez
     Becerra
     Bereuter
     Berkley
     Berman
     Berry
     Biggert
     Bilirakis
     Bishop (GA)
     Bishop (NY)
     Bishop (UT)
     Blackburn
     Blumenauer
     Blunt
     Boehlert
     Boehner
     Bonilla
     Bonner
     Bono
     Boozman
     Boswell
     Boucher
     Boyd
     Bradley (NH)
     Brady (PA)
     Brady (TX)
     Brown (OH)
     Brown (SC)
     Brown, Corrine
     Brown-Waite, Ginny
     Burgess
     Burns
     Burr
     Burton (IN)
     Buyer
     Calvert
     Camp
     Cannon
     Cantor
     Capito
     Capps
     Capuano
     Cardin
     Cardoza
     Carson (IN)
     Carson (OK)
     Case
     Castle
     Chabot
     Chocola
     Clay
     Clyburn
     Coble
     Cole
     Collins
     Cooper
     Costello
     Cox
     Cramer
     Crane
     Crenshaw
     Crowley

[[Page H2669]]


     Cubin
     Culberson
     Cummings
     Cunningham
     Davis (AL)
     Davis (CA)
     Davis (FL)
     Davis, Tom
     Deal (GA)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     DeLay
     DeMint
     Deutsch
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dicks
     Dingell
     Dooley (CA)
     Doolittle
     Doyle
     Dreier
     Duncan
     Dunn
     Ehlers
     Emanuel
     Emerson
     Engel
     English
     Eshoo
     Etheridge
     Evans
     Everett
     Farr
     Fattah
     Feeney
     Ferguson
     Filner
     Flake
     Fletcher
     Foley
     Forbes
     Ford
     Fossella
     Frank (MA)
     Franks (AZ)
     Frelinghuysen
     Gallegly
     Garrett (NJ)
     Gerlach
     Gibbons
     Gilchrest
     Gillmor
     Gingrey
     Goode
     Goodlatte
     Gordon
     Goss
     Graves
     Green (WI)
     Greenwood
     Grijalva
     Gutierrez
     Gutknecht
     Harman
     Harris
     Hart
     Hastings (FL)
     Hastings (WA)
     Hayes
     Hayworth
     Hefley
     Hensarling
     Herger
     Hill
     Hinchey
     Hobson
     Hoeffel
     Hoekstra
     Holden
     Holt
     Honda
     Hooley (OR)
     Hostettler
     Houghton
     Hoyer
     Hulshof
     Hunter
     Inslee
     Isakson
     Israel
     Issa
     Istook
     Janklow
     Jefferson
     Jenkins
     John
     Johnson (CT)
     Johnson (IL)
     Johnson, Sam
     Jones (NC)
     Jones (OH)
     Kanjorski
     Kaptur
     Keller
     Kelly
     Kennedy (MN)
     Kennedy (RI)
     Kildee
     Kilpatrick
     Kind
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kleczka
     Kline
     Knollenberg
     Kolbe
     Kucinich
     LaHood
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     Latham
     LaTourette
     Leach
     Lee
     Levin
     Lewis (CA)
     Lewis (KY)
     Linder
     Lipinski
     LoBiondo
     Lofgren
     Lowey
     Lucas (KY)
     Lucas (OK)
     Lynch
     Majette
     Maloney
     Manzullo
     Markey
     Marshall
     Matheson
     Matsui
     McCarthy (NY)
     McCollum
     McCotter
     McCrery
     McDermott
     McGovern
     McHugh
     McIntyre
     McKeon
     McNulty
     Meehan
     Meek (FL)
     Meeks (NY)
     Menendez
     Mica
     Millender-McDonald
     Miller (FL)
     Miller (MI)
     Miller (NC)
     Miller, Gary
     Miller, George
     Mollohan
     Moore
     Moran (KS)
     Moran (VA)
     Murphy
     Murtha
     Musgrave
     Myrick
     Nadler
     Napolitano
     Neal (MA)
     Ney
     Northup
     Norwood
     Nunes
     Nussle
     Oberstar
     Obey
     Olver
     Osborne
     Ose
     Otter
     Owens
     Oxley
     Pallone
     Pascrell
     Pastor
     Payne
     Pearce
     Pelosi
     Pence
     Peterson (MN)
     Peterson (PA)
     Petri
     Pickering
     Pitts
     Platts
     Pombo
     Pomeroy
     Porter
     Portman
     Price (NC)
     Pryce (OH)
     Putnam
     Quinn
     Radanovich
     Rahall
     Ramstad
     Rangel
     Regula
     Rehberg
     Renzi
     Reynolds
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Ros-Lehtinen
     Ross
     Rothman
     Roybal-Allard
     Royce
     Ruppersberger
     Ryan (OH)
     Ryan (WI)
     Ryun (KS)
     Sabo
     Sanchez, Linda T.
     Sanchez, Loretta
     Sanders
     Saxton
     Schiff
     Schrock
     Scott (GA)
     Scott (VA)
     Sensenbrenner
     Serrano
     Sessions
     Shadegg
     Shaw
     Shays
     Sherman
     Sherwood
     Shimkus
     Shuster
     Simmons
     Simpson
     Skelton
     Slaughter
     Smith (MI)
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Snyder
     Solis
     Souder
     Spratt
     Stark
     Stearns
     Strickland
     Stupak
     Sullivan
     Sweeney
     Tancredo
     Tanner
     Tauscher
     Tauzin
     Taylor (MS)
     Taylor (NC)
     Terry
     Thomas
     Thompson (CA)
     Thompson (MS)
     Thornberry
     Tiahrt
     Tiberi
     Toomey
     Towns
     Turner (OH)
     Udall (CO)
     Udall (NM)
     Upton
     Van Hollen
     Velazquez
     Visclosky
     Vitter
     Walsh
     Wamp
     Waters
     Watt
     Waxman
     Weiner
     Weldon (FL)
     Weldon (PA)
     Weller
     Wexler
     Whitfield
     Wicker
     Wilson (NM)
     Wilson (SC)
     Wolf
     Woolsey
     Wu
     Wynn
     Young (AK)
     Young (FL)

                                NOES--28

     Bell
     Carter
     Conyers
     Davis (IL)
     Doggett
     Edwards
     Frost
     Gonzalez
     Granger
     Green (TX)
     Hall
     Hinojosa
     Jackson (IL)
     Jackson-Lee (TX)
     Johnson, E. B.
     Lampson
     Lewis (GA)
     Michaud
     Ortiz
     Paul
     Reyes
     Rodriguez
     Rush
     Sandlin
     Schakowsky
     Stenholm
     Turner (TX)
     Watson

                             NOT VOTING--10

     Combest
     Davis (TN)
     Davis, Jo Ann
     Gephardt
     Hyde
     McCarthy (MO)
     McInnis
     Nethercutt
     Tierney
     Walden (OR)


                Announcement by the Speaker Pro Tempore

  The SPEAKER pro tempore (Mr. Simpson) (during the vote). Members are 
advised 2 minutes remain in this vote.

                              {time}  1501

  So the bill was passed.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.

                          ____________________