[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.
____________________