[Congressional Record Volume 149, Number 176 (Tuesday, December 9, 2003)]
[Senate]
[Pages S16159-S16196]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 SOCIAL SECURITY PROTECTION ACT OF 2003

  Mr. FRIST. Mr. President, I ask unanimous consent that the Senate now 
proceed to the consideration of Calendar No. 349, H.R. 743.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A 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.

  There being no objection, the Senate proceeded to consider the 
bill, which had been reported from the Committee on Finance, with an 
amendment to strike all after the enacting clause and inserting in lieu 
thereof the following;

  [Strike the part shown in black brackets and insert the part shown in 
italic.]

                                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.

[[Page S16160]]

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)) (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

[[Page S16161]]

     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.
       [``(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

[[Page S16162]]

       [(C) by inserting after subclause (III) the following new 
     subclauses:
       [``(IV) obtain information concerning whether such person 
     has been convicted of any other offense under Federal or 
     State law which resulted in imprisonment for more than 1 
     year,
       [``(V) obtain information concerning whether such person is 
     a person described in section 202(x)(1)(A)(iv), and'';
       [(2) in subparagraph (B), by adding at the end the 
     following new clause:
       [``(iii) Notwithstanding the provisions of section 552a of 
     title 5, United States Code, or any other provision of 
     Federal or State law (other than section 6103 of the Internal 
     Revenue Code of 1986 and section 1106(c) of this Act), the 
     Commissioner shall furnish any Federal, State, or local law 
     enforcement officer, upon the written request of the officer, 
     with the current address, social security account number, and 
     photograph (if applicable) of any person investigated under 
     this paragraph, if the officer furnishes the Commissioner 
     with the name of such person and such other identifying 
     information as may reasonably be required by the Commissioner 
     to establish the unique identity of such person, and notifies 
     the Commissioner that--
       [``(I) such person is described in section 
     202(x)(1)(A)(iv),
       [``(II) such person has information that is necessary for 
     the officer to conduct the officer's official duties, and
       [``(III) the location or apprehension of such person is 
     within the officer's official duties.'';
       [(3) in subparagraph (C)(i)(II), by striking ``subparagraph 
     (B)(i)(IV),,'' and inserting ``subparagraph (B)(i)(VI)'' and 
     striking ``section 1631(a)(2)(B)(ii)(IV)'' and inserting 
     ``section 1631(a)(2)(B)(ii)(VI)''; and
       [(4) in subparagraph (C)(i)--
       [(A) by striking ``or'' at the end of subclause (II);
       [(B) by striking the period at the end of subclause (III) 
     and inserting a comma; and
       [(C) by adding at the end the following new subclauses:
       [``(IV) such person has previously been convicted as 
     described in subparagraph (B)(i)(IV), unless the Commissioner 
     determines that such certification would be appropriate 
     notwithstanding such conviction, or
       [``(V) such person is person described in section 
     202(x)(1)(A)(iv).''.
       [(b) Title VIII Amendments.--Section 807 of such Act (42 
     U.S.C. 1007) is amended--
       [(1) in subsection (b)(2)--
       [(A) by striking ``and'' at the end of subparagraph (C);
       [(B) by redesignating subparagraph (D) as subparagraph (F); 
     and
       [(C) by inserting after subparagraph (C) the following new 
     subparagraphs:
       [``(D) obtain information concerning whether such person 
     has been convicted of any other offense under Federal or 
     State law which resulted in imprisonment for more than 1 
     year;
       [``(E) obtain information concerning whether such person is 
     a person described in section 804(a)(2); and'';
       [(2) in subsection (b), by adding at the end the following 
     new paragraph:
       [``(3) Notwithstanding the provisions of section 552a of 
     title 5, United States Code, or any other provision of 
     Federal or State law (other than section 6103 of the Internal 
     Revenue Code of 1986 and section 1106(c) of this Act), the 
     Commissioner shall furnish any Federal, State, or local law 
     enforcement officer, upon the written request of the officer, 
     with the current address, social security account number, and 
     photograph (if applicable) of any person investigated under 
     this subsection, if the officer furnishes the Commissioner 
     with the name of such person and such other identifying 
     information as may reasonably be required by the Commissioner 
     to establish the unique identity of such person, and notifies 
     the Commissioner that--
       [``(A) such person is described in section 804(a)(2),
       [``(B) such person has information that is necessary for 
     the officer to conduct the officer's official duties, and
       [``(C) the location or apprehension of such person is 
     within the officer's official duties.''; and
       [(3) in subsection (d)(1)--
       [(A) by striking ``or'' at the end of subparagraph (B);
       [(B) by striking the period at the end of subparagraph (C) 
     and inserting a semicolon; and
       [(C) by adding at the end the following new subparagraphs:
       [``(D) such person has previously been convicted as 
     described in subsection (b)(2)(D), unless the Commissioner 
     determines that such payment would be appropriate 
     notwithstanding such conviction; or
       [``(E) such person is a person described in section 
     804(a)(2).''.
       [(c) Title XVI Amendments.--Section 1631(a)(2)(B) of such 
     Act (42 U.S.C. 1383(a)(2)(B)) is amended--
       [(1) in clause (ii)--
       [(A) by striking ``and'' at the end of subclause (III);
       [(B) by redesignating subclause (IV) as subclause (VI); and
       [(C) by inserting after subclause (III) the following new 
     subclauses:
       [``(IV) obtain information concerning whether the person 
     has been convicted of any other offense under Federal or 
     State law which resulted in imprisonment for more than 1 
     year;
       [``(V) obtain information concerning whether such person is 
     a person described in section 1611(e)(4)(A); and'';
       [(2) in clause (iii)(II)--
       [(A) by striking ``clause (ii)(IV)'' and inserting ``clause 
     (ii)(VI)''; and
       [(B) by striking ``section 205(j)(2)(B)(i)(IV)'' and 
     inserting ``section 205(j)(2)(B)(i)(VI)'';
       [(3) in clause (iii)--
       [(A) by striking ``or'' at the end of subclause (II);
       [(B) by striking the period at the end of subclause (III) 
     and inserting a semicolon; and
       [(C) by adding at the end the following new subclauses:
       [``(IV) the person has previously been convicted as 
     described in clause (ii)(IV) of this subparagraph, unless the 
     Commissioner determines that the payment would be appropriate 
     notwithstanding the conviction; or
       [``(V) such person is a person described in section 
     1611(e)(4)(A).''; and
       [(4) by adding at the end the following new clause:
       [``(xiv) Notwithstanding the provisions of section 552a of 
     title 5, United States Code, or any other provision of 
     Federal or State law (other than section 6103 of the Internal 
     Revenue Code of 1986 and section 1106(c) of this Act), the 
     Commissioner shall furnish any 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)'';

[[Page S16163]]

       [(3) in paragraph (6)(A)(ii), by striking ``paragraph (9)'' 
     and inserting ``paragraph (10)''; and
       [(4) by inserting after paragraph (6) the following new 
     paragraph:
       [``(7)(A) If the Commissioner of Social Security or a court 
     of competent jurisdiction determines that a representative 
     payee that is not a Federal, State, or local government 
     agency has misused all or part of an individual's benefit 
     that was paid to such representative payee under this 
     subsection, the representative payee shall be liable for the 
     amount misused, and such amount (to the extent not repaid by 
     the representative payee) shall be treated as an overpayment 
     of benefits under this title to the representative payee for 
     all purposes of this Act and related laws pertaining to the 
     recovery of such overpayments. Subject to subparagraph (B), 
     upon recovering all or any part of such amount, the 
     Commissioner shall certify an amount equal to the recovered 
     amount for payment to such individual or such individual's 
     alternative representative payee.
       [``(B) The total of the amount certified for payment to 
     such individual or such individual's alternative 
     representative payee under subparagraph (A) and the amount 
     certified for payment under paragraph (5) may not exceed the 
     total benefit amount misused by the representative payee with 
     respect to such individual.''.
       [(b) Title VIII Amendment.--Section 807 of such Act (as 
     amended by section 102(b)(2)) is amended further by adding at 
     the end the following new subsection:
       [``(l) Liability for Misused Amounts.--
       [``(1) In general.--If the Commissioner of Social Security 
     or a court of competent jurisdiction determines that a 
     representative payee that is not a Federal, State, or local 
     government agency has misused all or part of a qualified 
     individual's benefit that was paid to such representative 
     payee under this section, the representative payee shall be 
     liable for the amount misused, and such amount (to the extent 
     not repaid by the representative payee) shall be treated as 
     an overpayment of benefits under this title to the 
     representative payee for all purposes of this Act and related 
     laws pertaining to the recovery of such overpayments. Subject 
     to paragraph (2), upon recovering all or any part of such 
     amount, the Commissioner shall make payment of an amount 
     equal to the recovered amount to such qualified individual or 
     such qualified individual's alternative representative payee.
       [``(2) Limitation.--The total of the amount paid to such 
     individual or such individual's alternative representative 
     payee under paragraph (1) and the amount paid under 
     subsection (i) may not exceed the total benefit amount 
     misused by the representative payee with respect to such 
     individual.''.
       [(c) Title XVI Amendments.--Section 1631(a)(2) of such Act 
     (42 U.S.C. 1383(a)(2)) (as amended by section 102(b)(3)) is 
     amended further--
       [(1) in subparagraph (G)(i)(II), by striking ``section 
     205(j)(9)'' and inserting ``section 205(j)(10)''; and
       [(2) by striking subparagraph (H) and inserting the 
     following:
       [``(H)(i) If the Commissioner of Social Security or a court 
     of competent jurisdiction determines that a representative 
     payee that is not a Federal, State, or local government 
     agency has misused all or part of an individual's benefit 
     that was paid to the representative payee under this 
     paragraph, the representative payee shall be liable for the 
     amount misused, and the amount (to the extent not repaid by 
     the representative payee) shall be treated as an overpayment 
     of benefits under this title to the representative payee for 
     all purposes of this Act and related laws pertaining to the 
     recovery of the overpayments. Subject to clause (ii), upon 
     recovering all or any part of the amount, the Commissioner 
     shall make payment of an amount equal to the recovered amount 
     to such individual or such individual's alternative 
     representative payee.
       [``(ii) The total of the amount paid to such individual or 
     such individual's alternative representative payee under 
     clause (i) and the amount paid under subparagraph (E) may not 
     exceed the total benefit amount misused by the representative 
     payee with respect to such individual.''.
       [(d) Effective Date.--The amendments made by this section 
     shall apply to benefit misuse by a representative payee in 
     any case with respect to which the Commissioner of Social 
     Security or a court of competent jurisdiction makes the 
     determination of misuse after 180 days after the date of the 
     enactment of this Act.

     [SEC. 106. AUTHORITY TO REDIRECT DELIVERY OF BENEFIT PAYMENTS 
                   WHEN A REPRESENTATIVE PAYEE FAILS TO PROVIDE 
                   REQUIRED ACCOUNTING.

       [(a) Title II Amendments.--Section 205(j)(3) of the Social 
     Security Act (42 U.S.C. 405(j)(3)) (as amended by sections 
     102(a)(1)(B) and 105(a)(2)) is amended--
       [(1) by redesignating subparagraphs (E) and (F) as 
     subparagraphs (F) and (G), respectively; and
       [(2) by inserting after subparagraph (D) the following new 
     subparagraph:
       [``(E) In any case in which the person described in 
     subparagraph (A) or (D) receiving payments on behalf of 
     another fails to submit a report required by the Commissioner 
     of Social Security under subparagraph (A) or (D), the 
     Commissioner may, after furnishing notice to such person and 
     the individual entitled to such payment, require that such 
     person appear in person at a field office of the Social 
     Security Administration serving the area in which the 
     individual resides in order to receive such payments.''.
       [(b) Title VIII Amendments.--Section 807(h) of such Act (42 
     U.S.C. 1007(h)) is amended--
       [(1) by redesignating paragraphs (3) and (4) as paragraphs 
     (4) and (5), respectively; and
       [(2) by inserting after paragraph (2) the following new 
     paragraph:
       [``(3) Authority to redirect delivery of benefit payments 
     when a representative payee fails to provide required 
     accounting.--In any case in which the person described in 
     paragraph (1) or (2) receiving benefit payments on behalf of 
     a qualified individual fails to submit a report required by 
     the Commissioner of Social Security under paragraph (1) or 
     (2), the Commissioner may, after furnishing notice to such 
     person and the qualified individual, require that such person 
     appear in person at a United States Government facility 
     designated by the Social Security Administration as serving 
     the area in which the qualified individual resides in order 
     to receive such benefit payments.''.
       [(c) Title XVI Amendment.--Section 1631(a)(2)(C) of such 
     Act (42 U.S.C. 1383(a)(2)(C)) is amended by adding at the end 
     the following new clause:
       [``(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--

[[Page S16164]]

       [(A) by striking ``who'' the first place it appears and 
     inserting ``who--''; and
       [(B) by striking ``makes'' and all that follows through 
     ``shall be subject to,'' and inserting the following:
       [``(1) makes, or causes to be made, a statement or 
     representation of a material fact, for use in determining any 
     initial or continuing right to or the amount of monthly 
     insurance benefits under title II or benefits or payments 
     under title XVI that the person knows or should know is false 
     or misleading,
       [``(2) makes such a statement or representation for such 
     use with knowing disregard for the truth, or
       [``(3) omits from a statement or representation for such 
     use, or otherwise withholds disclosure of, a fact which the 
     person knows or should know is material to the determination 
     of any initial or continuing right to or the amount of 
     monthly insurance benefits under title II or benefits or 
     payments under title XVI, if the person knows, or should 
     know, that the statement or representation with such omission 
     is false or misleading or that the withholding of such 
     disclosure is misleading,

     shall be subject to,''.
       [(b) Clarification of Treatment of Recovered Amounts.--
     Section 1129(e)(2)(B) of such Act (42 U.S.C. 1320a-
     8(e)(2)(B)) is amended by striking ``In the case of amounts 
     recovered arising out of a determination relating to title 
     VIII or XVI,'' and inserting ``In the case of any other 
     amounts recovered under this section,''.
       [(c) Conforming Amendments.--
       [(1) Section 1129(b)(3)(A) of such Act (42 U.S.C. 1320a-
     8(b)(3)(A)) is amended by striking ``charging fraud or false 
     statements''.
       [(2) Section 1129(c)(1) of such Act (42 U.S.C. 1320a-
     8(c)(1)) is amended by striking ``and representations'' and 
     inserting ``, representations, or actions''.
       [(3) Section 1129(e)(1)(A) of such Act (42 U.S.C. 1320a-
     8(e)(1)(A)) is amended by striking ``statement or 
     representation referred to in subsection (a) was made'' and 
     inserting ``violation occurred''.
       [(d) Effective Date.--The amendments made by this section 
     shall apply with respect to violations committed after the 
     date on which the Commissioner implements the centralized 
     computer file described in section 202.

     [SEC. 202. ISSUANCE BY COMMISSIONER OF SOCIAL SECURITY OF 
                   RECEIPTS TO ACKNOWLEDGE SUBMISSION OF REPORTS 
                   OF CHANGES IN WORK OR EARNINGS STATUS OF 
                   DISABLED BENEFICIARIES.

       [Effective as soon as possible, but not later than 1 year 
     after the date of the enactment of this Act, until such time 
     as the Commissioner of Social Security implements a 
     centralized computer file recording the date of the 
     submission of information by a disabled beneficiary (or 
     representative) regarding a change in the beneficiary's work 
     or earnings status, the Commissioner shall issue a receipt to 
     the disabled beneficiary (or representative) each time he or 
     she submits documentation, or otherwise reports to the 
     Commissioner, on a change in such status.

     [SEC. 203. DENIAL OF TITLE II BENEFITS TO PERSONS FLEEING 
                   PROSECUTION, CUSTODY, OR CONFINEMENT, AND TO 
                   PERSONS VIOLATING PROBATION OR PAROLE.

       [(a) In General.--Section 202(x) of the Social Security Act 
     (42 U.S.C. 402(x)) is amended--
       [(1) in the heading, by striking ``Prisoners'' and all that 
     follows and inserting the following: ``Prisoners, Certain 
     Other Inmates of Publicly Funded Institutions, Fugitives, 
     Probationers, and Parolees'';
       [(2) in paragraph (1)(A)(ii)(IV), by striking ``or'' at the 
     end;
       [(3) in paragraph (1)(A)(iii), by striking the period at 
     the end and inserting a comma;
       [(4) by inserting after paragraph (1)(A)(iii) the 
     following:
       [``(iv) is fleeing to avoid prosecution, or custody or 
     confinement after conviction, under the laws of the place 
     from which the person flees, for a crime, or an attempt to 
     commit a crime, which is a felony under the laws of the place 
     from which the person flees, or which, in the case of the 
     State of New Jersey, is a high misdemeanor under the laws of 
     such State, or
       [``(v) is violating a condition of probation or parole 
     imposed under Federal or State law.
     In the case of an individual from whom such monthly benefits 
     have been withheld pursuant to clause (iv) or (v), the 
     Commissioner may, for good cause shown, pay such withheld 
     benefits to the individual.''; and
       [(5) in paragraph (3), by adding at the end the following 
     new subparagraph:
       [``(C) Notwithstanding the provisions of section 552a of 
     title 5, United States Code, or any other provision of 
     Federal or State law (other than section 6103 of the Internal 
     Revenue Code of 1986 and section 1106(c) of this Act), the 
     Commissioner shall furnish any Federal, State, or local law 
     enforcement officer, upon the written request of the officer, 
     with the current address, Social Security number, and 
     photograph (if applicable) of any beneficiary under this 
     title, if the officer furnishes the Commissioner with the 
     name of the beneficiary, and other identifying information as 
     reasonably required by the Commissioner to establish the 
     unique identity of the beneficiary, and notifies the 
     Commissioner that--
       [``(i) the beneficiary--
       [``(I) is described in clause (iv) or (v) of paragraph 
     (1)(A); and
       [``(II) has information that is necessary for the officer 
     to conduct the officer's official duties; and
       [``(ii) the location or apprehension of the beneficiary is 
     within the officer's official duties.''.
       [(b) Regulations.--Not later than the first day of the 
     first month that begins on or after the date that is 9 months 
     after the date of the enactment of this Act, the Commissioner 
     of Social Security shall promulgate regulations governing 
     payment by the Commissioner, for good cause shown, of 
     withheld benefits, pursuant to the last sentence of section 
     202(x)(1)(A) of the Social Security Act (as amended by 
     subsection (a)).
       [(c) Effective Date.--The amendments made by subsection (a) 
     shall take effect on the first day of the first month that 
     begins on or after the date that is 9 months after the date 
     of the enactment of this Act.

     [SEC. 204. REQUIREMENTS RELATING TO OFFERS TO PROVIDE FOR A 
                   FEE A PRODUCT OR SERVICE AVAILABLE WITHOUT 
                   CHARGE FROM THE SOCIAL SECURITY ADMINISTRATION.

       [(a) In General.--Section 1140 of the Social Security Act 
     (42 U.S.C. 1320b-10) is amended--
       [(1) in subsection (a), by adding at the end the following 
     new paragraph:
       [``(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

[[Page S16165]]

     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 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

[[Page S16166]]

     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 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

[[Page S16167]]

     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''.

     [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''.

[[Page S16168]]

       [(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''.]

     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.
Sec. 107. Survey of use of payments by representative payees.

                        Subtitle B--Enforcement

Sec. 111. Civil monetary penalty authority with respect to wrongful 
              conversions by representative payees.

                     TITLE II--PROGRAM PROTECTIONS

Sec. 201. Civil monetary penalty authority with respect to withholding 
              of material facts.
Sec. 202. Issuance by Commissioner of Social Security of receipts to 
              acknowledge submission of reports of changes in work or 
              earnings status of disabled beneficiaries.
Sec. 203. Denial of title II benefits to persons fleeing prosecution, 
              custody, or confinement, and to persons violating 
              probation or parole.
Sec. 204. Requirements relating to offers to provide for a fee a 
              product or service available without charge from the 
              Social Security Administration.
Sec. 205. Refusal to recognize certain individuals as claimant 
              representatives.
Sec. 206. Criminal penalty for corrupt or forcible interference with 
              administration of Social Security Act.
Sec. 207. Use of symbols, emblems, or names in reference to social 
              security or medicare.
Sec. 208. Disqualification from payment during trial work period upon 
              conviction of fraudulent concealment of work activity.
Sec. 209. Authority for judicial orders of restitution.
Sec. 210. Information for administration of provisions related to 
              noncovered employment.
Sec. 211. Cross-program recovery of overpayments.
Sec. 212. Prohibition on payment of title II benefits to persons not 
              authorized to work in the United States.

   TITLE III--ATTORNEY REPRESENTATIVE FEE PAYMENT SYSTEM IMPROVEMENTS

Sec. 301. Cap on attorney assessments.
Sec. 302. GAO study of fee payment process for claimant 
              representatives.

            TITLE IV--MISCELLANEOUS AND TECHNICAL AMENDMENTS

    Subtitle A--Amendments Relating to the Ticket to Work and Work 
                   Incentives Improvement Act of 1999

Sec. 401. Elimination of demonstration authority sunset date.
Sec. 402. Expansion of waiver authority available in connection with 
              demonstration projects providing for reductions in 
              disability insurance benefits based on earnings.
Sec. 403. Funding of demonstration projects providing for reductions in 
              disability insurance benefits based on earnings.

[[Page S16169]]

Sec. 404. Availability of Federal and State work incentive services to 
              additional individuals.
Sec. 405. Technical amendment clarifying treatment for certain purposes 
              of individual work plans under the Ticket to Work and 
              Self-Sufficiency Program.
Sec. 406. GAO study regarding the Ticket to Work and Self-Sufficiency 
              Program.

                  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.
Sec. 417. Compensation for the Social Security Advisory Board.
Sec. 418. 60-month period of employment requirement for government 
              pension offset exemption.
Sec. 419. Post-1956 Military Wage Credits.

                    Subtitle C--Technical Amendments

Sec. 421. Technical correction relating to responsible agency head.
Sec. 422. Technical correction relating to retirement benefits of 
              ministers.
Sec. 423. Technical corrections relating to domestic employment.
Sec. 424. Technical corrections of outdated references.
Sec. 425. Technical correction respecting self-employment income in 
              community property States.
Sec. 426. Technical amendments to the Railroad Retirement and Survivors 
              Improvement Act of 2001.

              Subtitle D--Amendments Related to Title XVI

Sec. 430. Exclusion from income for certain infrequent or irregular 
              income and certain interest or dividend income.
Sec. 431. Uniform 9-month resource exclusion periods.
Sec. 432. Modification of dedicated account requirements.
Sec. 433. Elimination of certain restrictions on the application of the 
              student earned income exclusion.
Sec. 434. Exclusion of Americorps and other volunteer benefits for 
              purposes of determining supplemental security income 
              eligibility and benefit amounts and social security 
              disability insurance entitlement.
Sec. 435. Exception to retrospective monthly accounting for 
              nonrecurring income.
Sec. 436. Removal of restriction on payment of benefits to children who 
              are born or who become blind or disabled after their 
              military parents are stationed overseas.
Sec. 437. Treatment of education-related income and resources.
Sec. 438. Monthly treatment of uniformed service compensation.
Sec. 439. Update of resource limits.
Sec. 440. Review of State agency blindness and disability 
              determinations.

                  TITLE I--PROTECTION OF BENEFICIARIES

                   Subtitle A--Representative Payees

     SEC. 101. AUTHORITY TO REISSUE BENEFITS MISUSED BY 
                   ORGANIZATIONAL REPRESENTATIVE PAYEES.

       (a) Title II Amendments.--
       (1) Reissuance of benefits.--Section 205(j)(5) of the 
     Social Security Act (42 U.S.C. 405(j)(5)) is amended by 
     inserting after the first sentence the following: ``In any 
     case in which a representative payee that--
       ``(A) is not an individual (regardless of whether it is a 
     `qualified organization' within the meaning of paragraph 
     (4)(B)); or
       ``(B) is an individual who, for any month during a period 
     when misuse occurs, serves 15 or more individuals who are 
     beneficiaries under this title, title VIII, title XVI, or any 
     combination of such titles;
     misuses all or part of an individual's benefit paid to such 
     representative payee, the Commissioner of Social Security 
     shall certify for payment to the beneficiary or the 
     beneficiary's alternative representative payee an amount 
     equal to the amount of such benefit so misused. The 
     provisions of this paragraph are subject to the limitations 
     of paragraph (7)(B).''.
       (2) Misuse of benefits defined.--Section 205(j) of such Act 
     (42 U.S.C. 405(j)) is amended by adding at the end the 
     following:
       ``(8) For purposes of this subsection, misuse of benefits 
     by a representative payee occurs in any case in which the 
     representative payee receives payment under this title for 
     the use and benefit of another person and converts such 
     payment, or any part thereof, to a use other than for the use 
     and benefit of such other person. The Commissioner of Social 
     Security may prescribe by regulation the meaning of the term 
     `use and benefit' for purposes of this paragraph.''.
       (b) Title VIII Amendments.--
       (1) Reissuance of benefits.--Section 807(i)(1) 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: ``In any 
     case in which a representative payee that--
       ``(A) is not an individual; or
       ``(B) is an individual who, for any month during a period 
     when misuse occurs, serves 15 or more individuals who are 
     beneficiaries under this title, title II, title XVI, or any 
     combination of such titles;
     misuses all or part of an individual's benefit paid to such 
     representative payee, the Commissioner of Social Security 
     shall pay to the beneficiary or the beneficiary's alternative 
     representative payee an amount equal to the amount of such 
     benefit so misused. The provisions of this paragraph are 
     subject to the limitations of subsection (l)(2).''.
       (2) Misuse of benefits defined.--Section 807 of such Act 
     (42 U.S.C. 1007) is amended by adding at the end the 
     following:
       ``(j) Misuse of Benefits.--For purposes of this title, 
     misuse of benefits by a representative payee occurs in any 
     case in which the representative payee receives payment under 
     this title for the use and benefit of another person under 
     this title and converts such payment, or any part thereof, to 
     a use other than for the use and benefit of such person. The 
     Commissioner of Social Security may prescribe by regulation 
     the meaning of the term `use and benefit' for purposes of 
     this subsection.''.
       (3) Technical amendment.--Section 807(a) of such Act (42 
     U.S.C. 1007(a)) is amended, in the first sentence, by 
     striking ``for his or her benefit'' and inserting ``for his 
     or her use and benefit''.
       (c) Title XVI Amendments.--
       (1) Reissuance of benefits.--Section 1631(a)(2)(E) of such 
     Act (42 U.S.C. 1383(a)(2)(E)) is amended by inserting after 
     the first sentence the following: ``In any case in which a 
     representative payee that--
       ``(i) is not an individual (regardless of whether it is a 
     `qualified organization' within the meaning of subparagraph 
     (D)(ii)); or
       ``(ii) is an individual who, for any month during a period 
     when misuse occurs, serves 15 or more individuals who are 
     beneficiaries under this title, title II, title VIII, or any 
     combination of such titles;
     misuses all or part of an individual's benefit paid to such 
     representative payee, the Commissioner of Social Security 
     shall pay to the beneficiary or the beneficiary's alternative 
     representative payee an amount equal to the amount of such 
     benefit so misused. The provisions of this subparagraph are 
     subject to the limitations of subparagraph (H)(ii).''.
       (2) Exclusion of reissued benefits from resources.--Section 
     1613(a) of such Act (42 U.S.C. 1382b(a)) is amended--
       (A) in paragraph (12), by striking ``and'' at the end;
       (B) in paragraph (13), by striking the period and inserting 
     ``; and''; and
       (C) by inserting after paragraph (13) the following:
       ``(14) for the 9-month period beginning after the month in 
     which received, any amount received by such individual (or 
     spouse) or any other person whose income is deemed to be 
     included in such individual's (or spouse's) income for 
     purposes of this title as restitution for benefits under this 
     title, title II, or title VIII that a representative payee of 
     such individual (or spouse) or such other person under 
     section 205(j), 807, or 1631(a)(2) has misused.''.
       (3) Misuse of benefits defined.--Section 1631(a)(2)(A) of 
     such Act (42 U.S.C. 1383(a)(2)(A)) is amended by adding at 
     the end the following:
       ``(iv) For purposes of this paragraph, misuse of benefits 
     by a representative payee occurs in any case in which the 
     representative payee receives payment under this title for 
     the use and benefit of another person and converts such 
     payment, or any part thereof, to a use other than for the use 
     and benefit of such other person. The Commissioner of Social 
     Security may prescribe by regulation the meaning of the term 
     `use and benefit' for purposes of this clause.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to any case of benefit misuse by a representative 
     payee with respect to which the Commissioner of Social 
     Security makes the determination of misuse on or after 
     January 1, 1995.

     SEC. 102. OVERSIGHT OF REPRESENTATIVE PAYEES.

       (a) Certification of Bonding and Licensing Requirements for 
     Nongovernmental Organizational Representative Payees.--
       (1) Title ii amendments.--Section 205(j) of the Social 
     Security Act (42 U.S.C. 405(j)) is amended--
       (A) in paragraph (2)(C)(v), by striking ``a community-based 
     nonprofit social service agency licensed or bonded by the 
     State'' in subclause (I) and inserting ``a certified 
     community-based nonprofit social service agency (as defined 
     in paragraph (9))'';
       (B) in paragraph (3)(F), by striking ``community-based 
     nonprofit social service agencies'' and inserting ``certified 
     community-based nonprofit social service agencies (as defined 
     in paragraph (9))'';
       (C) in paragraph (4)(B), by striking ``any community-based 
     nonprofit social service agency which is bonded or licensed 
     in each State in which it serves as a representative payee'' 
     and inserting ``any certified community-based nonprofit 
     social service agency (as defined in paragraph (9))''; and
       (D) by adding after paragraph (8) (as added by section 
     101(a)(2) of this Act) the following:
       ``(9) For purposes of this subsection, the term `certified 
     community-based nonprofit social service agency' means a 
     community-based nonprofit social service agency which is in 
     compliance with requirements, under regulations which shall 
     be prescribed by the Commissioner, for annual certification 
     to the Commissioner that it is bonded in accordance with 
     requirements specified by the Commissioner and that it is 
     licensed in each State in which it serves as a representative 
     payee (if licensing is available in the State) in accordance 
     with requirements specified by the Commissioner. Any such 
     annual certification shall include a copy of any independent

[[Page S16170]]

     audit on the agency which may have been performed since the 
     previous certification.''.
       (2) Title xvi amendments.--Section 1631(a)(2) of such Act 
     (42 U.S.C. 1383(a)(2)) is amended--
       (A) in subparagraph (B)(vii), by striking ``a community-
     based nonprofit social service agency licensed or bonded by 
     the State'' in subclause (I) and inserting ``a certified 
     community-based nonprofit social service agency (as defined 
     in subparagraph (I))'';
       (B) in subparagraph (D)(ii)--
       (i) by striking ``or any community-based'' and all that 
     follows through ``in accordance'' in subclause (II) and 
     inserting ``or any certified community-based nonprofit social 
     service agency (as defined in subparagraph (I)), if the 
     agency, in accordance'';
       (ii) by redesignating items (aa) and (bb) as subclauses (I) 
     and (II), respectively (and adjusting the margins 
     accordingly); and
       (iii) by striking ``subclause (II)(bb)'' and inserting 
     ``subclause (II)''; and
       (C) by adding at the end the following:
       ``(I) For purposes of this paragraph, the term `certified 
     community-based nonprofit social service agency' means a 
     community-based nonprofit social service agency which is in 
     compliance with requirements, under regulations which shall 
     be prescribed by the Commissioner, for annual certification 
     to the Commissioner that it is bonded in accordance with 
     requirements specified by the Commissioner and that it is 
     licensed in each State in which it serves as a representative 
     payee (if licensing is available in the State) in accordance 
     with requirements specified by the Commissioner. Any such 
     annual certification shall include a copy of any independent 
     audit on the agency which may have been performed since the 
     previous certification.''.
       (3) Effective date.--The amendments made by this subsection 
     shall take effect on the first day of the thirteenth month 
     beginning after the date of the enactment of this Act.
       (b) Periodic Onsite Review.--
       (1) Title ii amendment.--Section 205(j)(6) of such Act (42 
     U.S.C. 405(j)(6)) is amended to read as follows:
       ``(6)(A) In addition to such other reviews of 
     representative payees as the Commissioner of Social Security 
     may otherwise conduct, the Commissioner shall provide for the 
     periodic onsite review of any person or agency located in the 
     United States that receives the benefits payable under this 
     title (alone or in combination with benefits payable under 
     title VIII or title XVI) to another individual pursuant to 
     the appointment of such person or agency as a representative 
     payee under this subsection, section 807, or section 
     1631(a)(2) in any case in which--
       ``(i) the representative payee is a person who serves in 
     that capacity with respect to 15 or more such individuals;
       ``(ii) the representative payee is a certified community-
     based nonprofit social service agency (as defined in 
     paragraph (9) of this subsection or section 1631(a)(2)(I)); 
     or
       ``(iii) the representative payee is an agency (other than 
     an agency described in clause (ii)) that serves in that 
     capacity with respect to 50 or more such individuals.
       ``(B) Within 120 days after the end of each fiscal year, 
     the Commissioner shall submit to the Committee on Ways and 
     Means of the House of Representatives and the Committee on 
     Finance of the Senate a report on the results of periodic 
     onsite reviews conducted during the fiscal year pursuant to 
     subparagraph (A) and of any other reviews of representative 
     payees conducted during such fiscal year in connection with 
     benefits under this title. Each such report shall describe in 
     detail all problems identified in such reviews and any 
     corrective action taken or planned to be taken to correct 
     such problems, and shall include--
       ``(i) the number of such reviews;
       ``(ii) the results of such reviews;
       ``(iii) the number of cases in which the representative 
     payee was changed and why;
       ``(iv) the number of cases involving the exercise of 
     expedited, targeted oversight of the representative payee by 
     the Commissioner conducted upon receipt of an allegation of 
     misuse of funds, failure to pay a vendor, or a similar 
     irregularity;
       ``(v) the number of cases discovered in which there was a 
     misuse of funds;
       ``(vi) how any such cases of misuse of funds were dealt 
     with by the Commissioner;
       ``(vii) the final disposition of such cases of misuse of 
     funds, including any criminal penalties imposed; and
       ``(viii) such other information as the Commissioner deems 
     appropriate.''.
       (2) Title viii amendment.--Section 807 of such Act (as 
     amended by section 101(b)(2) of this Act) is amended further 
     by adding at the end the following:
       ``(k) Periodic Onsite Review.--
       ``(1) In general.--In addition to such other reviews of 
     representative payees as the Commissioner of Social Security 
     may otherwise conduct, the Commissioner may provide for the 
     periodic onsite review of any person or agency that receives 
     the benefits payable under this title (alone or in 
     combination with benefits payable under title II or title 
     XVI) to another individual pursuant to the appointment of 
     such person or agency as a representative payee under this 
     section, section 205(j), or section 1631(a)(2) in any case in 
     which--
       ``(A) the representative payee is a person who serves in 
     that capacity with respect to 15 or more such individuals; or
       ``(B) the representative payee is an agency that serves in 
     that capacity with respect to 50 or more such individuals.
       ``(2) Report.--Within 120 days after the end of each fiscal 
     year, the Commissioner shall submit to the Committee on Ways 
     and Means of the House of Representatives and the Committee 
     on Finance of the Senate a report on the results of periodic 
     onsite reviews conducted during the fiscal year pursuant to 
     paragraph (1) and of any other reviews of representative 
     payees conducted during such fiscal year in connection with 
     benefits under this title. Each such report shall describe in 
     detail all problems identified in such reviews and any 
     corrective action taken or planned to be taken to correct 
     such problems, and shall include--
       ``(A) the number of such reviews;
       ``(B) the results of such reviews;
       ``(C) the number of cases in which the representative payee 
     was changed and why;
       ``(D) the number of cases involving the exercise of 
     expedited, targeted oversight of the representative payee by 
     the Commissioner conducted upon receipt of an allegation of 
     misuse of funds, failure to pay a vendor, or a similar 
     irregularity;
       ``(E) the number of cases discovered in which there was a 
     misuse of funds;
       ``(F) how any such cases of misuse of funds were dealt with 
     by the Commissioner;
       ``(G) the final disposition of such cases of misuse of 
     funds, including any criminal penalties imposed; and
       ``(H) such other information as the Commissioner deems 
     appropriate.''.
       (3) Title xvi amendment.--Section 1631(a)(2)(G) of such Act 
     (42 U.S.C. 1383(a)(2)(G)) is amended to read as follows:
       ``(G)(i) In addition to such other reviews of 
     representative payees as the Commissioner of Social Security 
     may otherwise conduct, the Commissioner shall provide for the 
     periodic onsite review of any person or agency that receives 
     the benefits payable under this title (alone or in 
     combination with benefits payable under title II or title 
     VIII) to another individual pursuant to the appointment of 
     the person or agency as a representative payee under this 
     paragraph, section 205(j), or section 807 in any case in 
     which--
       ``(I) the representative payee is a person who serves in 
     that capacity with respect to 15 or more such individuals;
       ``(II) the representative payee is a certified community-
     based nonprofit social service agency (as defined in 
     subparagraph (I) of this paragraph or section 205(j)(9)); or
       ``(III) the representative payee is an agency (other than 
     an agency described in subclause (II)) that serves in that 
     capacity with respect to 50 or more such individuals.
       ``(ii) Within 120 days after the end of each fiscal year, 
     the Commissioner shall submit to the Committee on Ways and 
     Means of the House of Representatives and the Committee on 
     Finance of the Senate a report on the results of periodic 
     onsite reviews conducted during the fiscal year pursuant to 
     clause (i) and of any other reviews of representative 
     payees conducted during such fiscal year in connection 
     with benefits under this title. Each such report shall 
     describe in detail all problems identified in the reviews 
     and any corrective action taken or planned to be taken to 
     correct the problems, and shall include--
       ``(I) the number of the reviews;
       ``(II) the results of such reviews;
       ``(III) the number of cases in which the representative 
     payee was changed and why;
       ``(IV) the number of cases involving the exercise of 
     expedited, targeted oversight of the representative payee by 
     the Commissioner conducted upon receipt of an allegation of 
     misuse of funds, failure to pay a vendor, or a similar 
     irregularity;
       ``(V) the number of cases discovered in which there was a 
     misuse of funds;
       ``(VI) how any such cases of misuse of funds were dealt 
     with by the Commissioner;
       ``(VII) the final disposition of such cases of misuse of 
     funds, including any criminal penalties imposed; and
       ``(VIII) such other information as the Commissioner deems 
     appropriate.''.

     SEC. 103. DISQUALIFICATION FROM SERVICE AS REPRESENTATIVE 
                   PAYEE OF PERSONS CONVICTED OF OFFENSES 
                   RESULTING IN IMPRISONMENT FOR MORE THAN 1 YEAR 
                   OR FLEEING PROSECUTION, CUSTODY, OR 
                   CONFINEMENT.

       (a) Title II Amendments.--Section 205(j)(2) of the Social 
     Security Act (42 U.S.C. 405(j)(2)) is amended--
       (1) in subparagraph (B)(i)--
       (A) by striking ``and'' at the end of subclause (III);
       (B) by redesignating subclause (IV) as subclause (VI); and
       (C) by inserting after subclause (III) the following:
       ``(IV) obtain information concerning whether such person 
     has been convicted of any other offense under Federal or 
     State law which resulted in imprisonment for more than 1 
     year,
       ``(V) obtain information concerning whether such person is 
     a person described in section 202(x)(1)(A)(iv), and'';
       (2) in subparagraph (B), by adding at the end the 
     following:
       ``(iii) Notwithstanding the provisions of section 552a of 
     title 5, United States Code, or any other provision of 
     Federal or State law (other than section 6103 of the Internal 
     Revenue Code of 1986 and section 1106(c) of this Act), the 
     Commissioner shall furnish any Federal, State, or local law 
     enforcement officer, upon the written request of the officer, 
     with the current address, social security account number, and 
     photograph (if applicable) of any person investigated under 
     this paragraph, if the officer furnishes the Commissioner 
     with the name of such person and such other identifying 
     information as may reasonably be required by the Commissioner 
     to establish the unique identity of such person, and notifies 
     the Commissioner that--
       ``(I) such person is described in section 202(x)(1)(A)(iv),
       ``(II) such person has information that is necessary for 
     the officer to conduct the officer's official duties, and

[[Page S16171]]

       ``(III) the location or apprehension of such person is 
     within the officer's official duties.'';
       (3) in subparagraph (C)(i)(II)--
       (A) by striking ``subparagraph (B)(i)(IV),,'' and inserting 
     ``subparagraph (B)(i)(VI)''; and
       (B) by striking ``section 1631(a)(2)(B)(ii)(IV)'' and 
     inserting ``section 1631(a)(2)(B)(ii)(VI)''; and
       (4) in subparagraph (C)(i)--
       (A) by striking ``or'' at the end of subclause (II);
       (B) by striking the period at the end of subclause (III) 
     and inserting a comma; and
       (C) by adding at the end the following:
       ``(IV) such person has previously been convicted as 
     described in subparagraph (B)(i)(IV), unless the Commissioner 
     determines that such certification would be appropriate 
     notwithstanding such conviction, or
       ``(V) such person is person described in section 
     202(x)(1)(A)(iv).''.
       (b) Title VIII Amendments.--Section 807 of such Act (42 
     U.S.C. 1007) is amended--
       (1) in subsection (b)(2)--
       (A) by striking ``and'' at the end of subparagraph (C);
       (B) by redesignating subparagraph (D) as subparagraph (F); 
     and
       (C) by inserting after subparagraph (C) the following:
       ``(D) obtain information concerning whether such person has 
     been convicted of any other offense under Federal or State 
     law which resulted in imprisonment for more than 1 year;
       ``(E) obtain information concerning whether such person is 
     a person described in section 804(a)(2); and'';
       (2) in subsection (b), by adding at the end the following:
       ``(3) Notwithstanding the provisions of section 552a of 
     title 5, United States Code, or any other provision of 
     Federal or State law (other than section 6103 of the Internal 
     Revenue Code of 1986 and section 1106(c) of this Act), the 
     Commissioner shall furnish any Federal, State, or local law 
     enforcement officer, upon the written request of the officer, 
     with the current address, social security account number, and 
     photograph (if applicable) of any person investigated under 
     this subsection, if the officer furnishes the Commissioner 
     with the name of such person and such other identifying 
     information as may reasonably be required by the Commissioner 
     to establish the unique identity of such person, and notifies 
     the Commissioner that--
       ``(A) such person is described in section 804(a)(2),
       ``(B) such person has information that is necessary for the 
     officer to conduct the officer's official duties, and
       ``(C) the location or apprehension of such person is within 
     the officer's official duties.''; and
       (3) in subsection (d)(1)--
       (A) by striking ``or'' at the end of subparagraph (B);
       (B) by striking the period at the end of subparagraph (C) 
     and inserting a semicolon; and
       (C) by adding at the end the following:
       ``(D) such person has previously been convicted as 
     described in subsection (b)(2)(D), unless the Commissioner 
     determines that such payment would be appropriate 
     notwithstanding such conviction; or
       ``(E) such person is a person described in section 
     804(a)(2).''.
       (c) Title XVI Amendments.--Section 1631(a)(2)(B) of such 
     Act (42 U.S.C. 1383(a)(2)(B)) is amended--
       (1) in clause (ii)--
       (A) by striking ``and'' at the end of subclause (III);
       (B) by redesignating subclause (IV) as subclause (VI); and
       (C) by inserting after subclause (III) the following:
       ``(IV) obtain information concerning whether the person has 
     been convicted of any other offense under Federal or State 
     law which resulted in imprisonment for more than 1 year;
       ``(V) obtain information concerning whether such person is 
     a person described in section 1611(e)(4)(A); and'';
       (2) in clause (iii)(II)--
       (A) by striking ``clause (ii)(IV)'' and inserting ``clause 
     (ii)(VI)''; and
       (B) by striking ``section 205(j)(2)(B)(i)(IV)'' and 
     inserting ``section 205(j)(2)(B)(i)(VI)'';
       (3) in clause (iii)--
       (A) by striking ``or'' at the end of subclause (II);
       (B) by striking the period at the end of subclause (III) 
     and inserting a semicolon; and
       (C) by adding at the end the following:
       ``(IV) the person has previously been convicted as 
     described in clause (ii)(IV) of this subparagraph, unless the 
     Commissioner determines that the payment would be appropriate 
     notwithstanding the conviction; or
       ``(V) such person is a person described in section 
     1611(e)(4)(A).''; and
       (4) by adding at the end the following:
       ``(xiv) Notwithstanding the provisions of section 552a of 
     title 5, United States Code, or any other provision of 
     Federal or State law (other than section 6103 of the Internal 
     Revenue Code of 1986 and section 1106(c) of this Act), the 
     Commissioner shall furnish any Federal, State, or local law 
     enforcement officer, upon the written request of the officer, 
     with the current address, social security account number, and 
     photograph (if applicable) of any person investigated under 
     this subparagraph, if the officer furnishes the Commissioner 
     with the name of such person and such other identifying 
     information as may reasonably be required by the Commissioner 
     to establish the unique identity of such person, and notifies 
     the Commissioner that--
       ``(I) such person is described in section 1611(e)(4)(A),
       ``(II) such person has information that is necessary for 
     the officer to conduct the officer's official duties, and
       ``(III) the location or apprehension of such person is 
     within the officer's official duties.''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on the first day of the thirteenth month 
     beginning after the date of the enactment of this Act.
       (e) Report to Congress.--The Commissioner of Social 
     Security, in consultation with the Inspector General of the 
     Social Security Administration, shall prepare a report 
     evaluating whether the existing procedures and reviews for 
     the qualification (including disqualification) of 
     representative payees are sufficient to enable the 
     Commissioner to protect benefits from being misused by 
     representative payees. The Commissioner shall submit the 
     report to the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate no 
     later than 270 days after the date of the enactment of this 
     Act. The Commissioner shall include in such report any 
     recommendations that the Commissioner considers appropriate.

     SEC. 104. FEE FORFEITURE IN CASE OF BENEFIT MISUSE BY 
                   REPRESENTATIVE PAYEES.

       (a) Title II Amendments.--Section 205(j)(4)(A)(i) of the 
     Social Security Act (42 U.S.C. 405(j)(4)(A)(i)) is amended--
       (1) in the first sentence, by striking ``A'' and inserting 
     ``Except as provided in the next sentence, a''; and
       (2) in the second sentence, by striking ``The Secretary'' 
     and inserting the following: ``A qualified organization may 
     not collect a fee from an individual for any month with 
     respect to which the Commissioner of Social Security or a 
     court of competent jurisdiction has determined that the 
     organization misused all or part of the individual's benefit, 
     and any amount so collected by the qualified organization for 
     such month shall be treated as a misused part of the 
     individual's benefit for purposes of paragraphs (5) and 
     (6). The Commissioner''.
       (b) Title XVI Amendments.--Section 1631(a)(2)(D)(i) of such 
     Act (42 U.S.C. 1383(a)(2)(D)(i)) is amended--
       (1) in the first sentence, by striking ``A'' and inserting 
     ``Except as provided in the next sentence, a''; and
       (2) in the second sentence, by striking ``The 
     Commissioner'' and inserting the following: ``A qualified 
     organization may not collect a fee from an individual for any 
     month with respect to which the Commissioner of Social 
     Security or a court of competent jurisdiction has determined 
     that the organization misused all or part of the individual's 
     benefit, and any amount so collected by the qualified 
     organization for such month shall be treated as a misused 
     part of the individual's benefit for purposes of 
     subparagraphs (E) and (F). The Commissioner''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to any month involving benefit misuse by a 
     representative payee in any case with respect to which the 
     Commissioner of Social Security or a court of competent 
     jurisdiction makes the determination of misuse after 180 days 
     after the date of the enactment of this Act.

     SEC. 105. LIABILITY OF REPRESENTATIVE PAYEES FOR MISUSED 
                   BENEFITS.

       (a) Title II Amendments.--Section 205(j) of the Social 
     Security Act (42 U.S.C. 405(j)) (as amended by sections 101 
     and 102) is amended further--
       (1) by redesignating paragraphs (7), (8), and (9) as 
     paragraphs (8), (9), and (10), respectively;
       (2) in paragraphs (2)(C)(v), (3)(F), and (4)(B), by 
     striking ``paragraph (9)'' and inserting ``paragraph (10)'';
       (3) in paragraph (6)(A)(ii), by striking ``paragraph (9)'' 
     and inserting ``paragraph (10)''; and
       (4) by inserting after paragraph (6) the following:
       ``(7)(A) If the Commissioner of Social Security or a court 
     of competent jurisdiction determines that a representative 
     payee that is not a Federal, State, or local government 
     agency has misused all or part of an individual's benefit 
     that was paid to such representative payee under this 
     subsection, the representative payee shall be liable for the 
     amount misused, and such amount (to the extent not repaid by 
     the representative payee) shall be treated as an overpayment 
     of benefits under this title to the representative payee for 
     all purposes of this Act and related laws pertaining to the 
     recovery of such overpayments. Subject to subparagraph (B), 
     upon recovering all or any part of such amount, the 
     Commissioner shall certify an amount equal to the recovered 
     amount for payment to such individual or such individual's 
     alternative representative payee.
       ``(B) The total of the amount certified for payment to such 
     individual or such individual's alternative representative 
     payee under subparagraph (A) and the amount certified for 
     payment under paragraph (5) may not exceed the total benefit 
     amount misused by the representative payee with respect to 
     such individual.''.
       (b) Title VIII Amendment.--Section 807 of such Act (as 
     amended by section 102(b)(2)) is amended further by adding at 
     the end the following:
       ``(l) Liability for Misused Amounts.--
       ``(1) In general.--If the Commissioner of Social Security 
     or a court of competent jurisdiction determines that a 
     representative payee that is not a Federal, State, or local 
     government agency has misused all or part of a qualified 
     individual's benefit that was paid to such representative 
     payee under this section, the representative payee shall be 
     liable for the amount misused, and such amount (to the extent 
     not repaid by the representative payee) shall be treated as 
     an overpayment of benefits under this title to the 
     representative payee for all purposes of this Act and related 
     laws pertaining to the recovery of such overpayments. Subject 
     to paragraph (2), upon recovering all or any part of such 
     amount, the Commissioner shall make payment of an amount 
     equal to the recovered amount to such qualified individual or 
     such qualified individual's alternative representative payee.

[[Page S16172]]

       ``(2) Limitation.--The total of the amount paid to such 
     individual or such individual's alternative representative 
     payee under paragraph (1) and the amount paid under 
     subsection (i) may not exceed the total benefit amount 
     misused by the representative payee with respect to such 
     individual.''.
       (c) Title XVI Amendments.--Section 1631(a)(2) of such Act 
     (42 U.S.C. 1383(a)(2)) (as amended by section 102(b)(3)) is 
     amended further--
       (1) in subparagraph (G)(i)(II), by striking ``section 
     205(j)(9)'' and inserting ``section 205(j)(10)''; and
       (2) by striking subparagraph (H) and inserting the 
     following:
       ``(H)(i) If the Commissioner of Social Security or a court 
     of competent jurisdiction determines that a representative 
     payee that is not a Federal, State, or local government 
     agency has misused all or part of an individual's benefit 
     that was paid to the representative payee under this 
     paragraph, the representative payee shall be liable for the 
     amount misused, and the amount (to the extent not repaid by 
     the representative payee) shall be treated as an overpayment 
     of benefits under this title to the representative payee for 
     all purposes of this Act and related laws pertaining to the 
     recovery of the overpayments. Subject to clause (ii), upon 
     recovering all or any part of the amount, the Commissioner 
     shall make payment of an amount equal to the recovered amount 
     to such individual or such individual's alternative 
     representative payee.
       ``(ii) The total of the amount paid to such individual or 
     such individual's alternative representative payee under 
     clause (i) and the amount paid under subparagraph (E) may not 
     exceed the total benefit amount misused by the representative 
     payee with respect to such individual.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to benefit misuse by a representative payee in 
     any case with respect to which the Commissioner of Social 
     Security or a court of competent jurisdiction makes the 
     determination of misuse after 180 days after the date of the 
     enactment of this Act.

     SEC. 106. AUTHORITY TO REDIRECT DELIVERY OF BENEFIT PAYMENTS 
                   WHEN A REPRESENTATIVE PAYEE FAILS TO PROVIDE 
                   REQUIRED ACCOUNTING.

       (a) Title II Amendments.--Section 205(j)(3) of the Social 
     Security Act (42 U.S.C. 405(j)(3)) (as amended by sections 
     102(a)(1)(B) and 105(a)(2)) is amended--
       (1) by redesignating subparagraphs (E) and (F) as 
     subparagraphs (F) and (G), respectively; and
       (2) by inserting after subparagraph (D) the following:
       ``(E) In any case in which the person described in 
     subparagraph (A) or (D) receiving payments on behalf of 
     another fails to submit a report required by the Commissioner 
     of Social Security under subparagraph (A) or (D), the 
     Commissioner may, after furnishing notice to such person and 
     the individual entitled to such payment, require that such 
     person appear in person at a field office of the Social 
     Security Administration serving the area in which the 
     individual resides in order to receive such payments.''.
       (b) Title VIII Amendments.--Section 807(h) of such Act (42 
     U.S.C. 1007(h)) is amended--
       (1) by redesignating paragraphs (3) and (4) as paragraphs 
     (4) and (5), respectively; and
       (2) by inserting after paragraph (2) the following:
       ``(3) Authority to redirect delivery of benefit payments 
     when a representative payee fails to provide required 
     accounting.--In any case in which the person described in 
     paragraph (1) or (2) receiving benefit payments on behalf of 
     a qualified individual fails to submit a report required by 
     the Commissioner of Social Security under paragraph (1) or 
     (2), the Commissioner may, after furnishing notice to such 
     person and the qualified individual, require that such person 
     appear in person at a United States Government facility 
     designated by the Social Security Administration as serving 
     the area in which the qualified individual resides in order 
     to receive such benefit payments.''.
       (c) Title XVI Amendment.--Section 1631(a)(2)(C) of such Act 
     (42 U.S.C. 1383(a)(2)(C)) is amended by adding at the end the 
     following:
       ``(v) In any case in which the person described in clause 
     (i) or (iv) receiving payments on behalf of another fails to 
     submit a report required by the Commissioner of Social 
     Security under clause (i) or (iv), the Commissioner may, 
     after furnishing notice to the person and the individual 
     entitled to the payment, require that such person appear in 
     person at a field office of the Social Security 
     Administration serving the area in which the individual 
     resides in order to receive such payments.''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect 180 days after the date of the enactment of 
     this Act.

     SEC. 107. SURVEY OF USE OF PAYMENTS BY REPRESENTATIVE PAYEES.

       (a) In General.--Section 1110 of the Social Security Act 
     (42 U.S.C. 1310) is amended by adding at the end the 
     following:
       ``(c) Notwithstanding subsection (a)(1), of the amount 
     appropriated to carry out that subsection for fiscal year 
     2004, $17,800,000 of such amount shall be transferred and 
     made available to the Inspector General of the Social 
     Security Administration for purposes of conducting a 
     statistically significant survey to determine how payments 
     made to individuals, organizations, and State or local 
     government agencies that are representative payees for 
     benefits paid under title II or XVI are being managed and 
     used on behalf of the beneficiaries for whom such benefits 
     are paid. Not later than February 1, 2005, the Inspector 
     General of the Social Security Administration shall submit a 
     report on the survey conducted in accordance with this 
     subsection to the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the 
     Senate.''.

                        Subtitle B--Enforcement

     SEC. 111. CIVIL MONETARY PENALTY AUTHORITY WITH RESPECT TO 
                   WRONGFUL CONVERSIONS BY REPRESENTATIVE PAYEES.

       (a) In General.--Section 1129(a) of the Social Security Act 
     (42 U.S.C. 1320a-8) is amended by adding at the end the 
     following:
       ``(3) Any person (including an organization, agency, or 
     other entity) who, having received, while acting in the 
     capacity of a representative payee pursuant to section 
     205(j), 807, or 1631(a)(2), a payment under title II, VIII, 
     or XVI for the use and benefit of another individual, 
     converts such payment, or any part thereof, to a use that 
     such person knows or should know is other than for the use 
     and benefit of such other individual shall be subject to, in 
     addition to any other penalties that may be prescribed by 
     law, a civil money penalty of not more than $5,000 for each 
     such conversion. Such person shall also be subject to an 
     assessment, in lieu of damages sustained by the United States 
     resulting from the conversion, of not more than twice the 
     amount of any payments so converted.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply with respect to violations committed after the 
     date of the enactment of this Act.

                     TITLE II--PROGRAM PROTECTIONS

     SEC. 201. CIVIL MONETARY PENALTY AUTHORITY WITH RESPECT TO 
                   WITHHOLDING OF MATERIAL FACTS.

       (a) Treatment of Withholding of Material Facts.--
       (1) Civil penalties.--Section 1129(a)(1) of the Social 
     Security Act (42 U.S.C. 1320a-8(a)(1)) is amended--
       (A) by striking ``who'' in the first sentence and inserting 
     ``who--'';
       (B) by striking ``makes'' in the first sentence and all 
     that follows through ``shall be subject to,'' and inserting 
     the following:
       ``(A) makes, or causes to be made, a statement or 
     representation of a material fact, for use in determining any 
     initial or continuing right to or the amount of monthly 
     insurance benefits under title II or benefits or payments 
     under title VIII or XVI, that the person knows or should know 
     is false or misleading,
       ``(B) makes such a statement or representation for such use 
     with knowing disregard for the truth, or
       ``(C) omits from a statement or representation for such 
     use, or otherwise withholds disclosure of, a fact which the 
     person knows or should know is material to the determination 
     of any initial or continuing right to or the amount of 
     monthly insurance benefits under title II or benefits or 
     payments under title VIII or XVI, if the person knows, or 
     should know, that the statement or representation with such 
     omission is false or misleading or that the withholding of 
     such disclosure is misleading,
     shall be subject to,'';
       (C) by inserting ``or each receipt of such benefits or 
     payments while withholding disclosure of such fact'' after 
     ``each such statement or representation'' in the first 
     sentence;
       (D) by inserting ``or because of such withholding of 
     disclosure of a material fact'' after ``because of such 
     statement or representation'' in the second sentence; and
       (E) by inserting ``or such a withholding of disclosure'' 
     after ``such a statement or representation'' in the second 
     sentence.
       (2) Administrative procedure for imposing penalties.--
     Section 1129A(a) of such Act (42 U.S.C. 1320a-8a(a)) is 
     amended--
       (A) by striking ``who'' the first place it appears and 
     inserting ``who--''; and
       (B) by striking ``makes'' and all that follows through 
     ``shall be subject to,'' and inserting the following:
       ``(1) makes, or causes to be made, a statement or 
     representation of a material fact, for use in determining any 
     initial or continuing right to or the amount of monthly 
     insurance benefits under title II or benefits or payments 
     under title XVI that the person knows or should know is false 
     or misleading,
       ``(2) makes such a statement or representation for such use 
     with knowing disregard for the truth, or
       ``(3) omits from a statement or representation for such 
     use, or otherwise withholds disclosure of, a fact which the 
     person knows or should know is material to the determination 
     of any initial or continuing right to or the amount of 
     monthly insurance benefits under title II or benefits or 
     payments under title XVI, if the person knows, or should 
     know, that the statement or representation with such omission 
     is false or misleading or that the withholding of such 
     disclosure is misleading,
     shall be subject to,''.
       (b) Clarification of Treatment of Recovered Amounts.--
     Section 1129(e)(2)(B) of such Act (42 U.S.C. 1320a-
     8(e)(2)(B)) is amended by striking ``In the case of amounts 
     recovered arising out of a determination relating to title 
     VIII or XVI,'' and inserting ``In the case of any other 
     amounts recovered under this section,''.
       (c) Conforming Amendments.--
       (1) Section 1129(b)(3)(A) of such Act (42 U.S.C. 1320a-
     8(b)(3)(A)) is amended by striking ``charging fraud or false 
     statements''.
       (2) Section 1129(c)(1) of such Act (42 U.S.C. 1320a-
     8(c)(1)) is amended by striking ``and representations'' and 
     inserting ``, representations, or actions''.
       (3) Section 1129(e)(1)(A) of such Act (42 U.S.C. 1320a-
     8(e)(1)(A)) is amended by striking ``statement or 
     representation referred to in subsection (a) was made'' and 
     inserting ``violation occurred''.

[[Page S16173]]

       (d) Effective Date.--The amendments made by this section 
     shall apply with respect to violations committed after the 
     date on which the Commissioner of Social Security implements 
     the centralized computer file described in section 202.

     SEC. 202. ISSUANCE BY COMMISSIONER OF SOCIAL SECURITY OF 
                   RECEIPTS TO ACKNOWLEDGE SUBMISSION OF REPORTS 
                   OF CHANGES IN WORK OR EARNINGS STATUS OF 
                   DISABLED BENEFICIARIES.

       Effective as soon as possible, but not later than 1 year 
     after the date of the enactment of this Act, until such time 
     as the Commissioner of Social Security implements a 
     centralized computer file recording the date of the 
     submission of information by a disabled beneficiary (or 
     representative) regarding a change in the beneficiary's work 
     or earnings status, the Commissioner shall issue a receipt to 
     the disabled beneficiary (or representative) each time he or 
     she submits documentation, or otherwise reports to the 
     Commissioner, on a change in such status.

     SEC. 203. DENIAL OF TITLE II BENEFITS TO PERSONS FLEEING 
                   PROSECUTION, CUSTODY, OR CONFINEMENT, AND TO 
                   PERSONS VIOLATING PROBATION OR PAROLE.

       (a) In General.--Section 202(x) of the Social Security Act 
     (42 U.S.C. 402(x)) is amended--
       (1) in the heading, by striking ``Prisoners'' and all that 
     follows and inserting the following: ``Prisoners, Certain 
     Other Inmates of Publicly Funded Institutions, Fugitives, 
     Probationers, and Parolees'';
       (2) in paragraph (1)(A)(ii)(IV), by striking ``or'' at the 
     end;
       (3) in paragraph (1)(A)(iii), by striking the period at the 
     end and inserting a comma;
       (4) by inserting after paragraph (1)(A)(iii) the following:
       ``(iv) is fleeing to avoid prosecution, or custody or 
     confinement after conviction, under the laws of the place 
     from which the person flees, for a crime, or an attempt to 
     commit a crime, which is a felony under the laws of the place 
     from which the person flees, or, in jurisdictions that do not 
     define crimes as felonies, is punishable by death or 
     imprisonment for a term exceeding 1 year regardless of the 
     actual sentence imposed, and a Federal, State, or local law 
     enforcement agency has notified the Commissioner that such 
     agency intends to pursue the individual by seeking arrest, 
     extradition, or prosecution, or
       ``(v) is violating a condition of probation or parole 
     imposed under Federal or State law, and a Federal, State, or 
     local law enforcement agency has notified the Commissioner 
     that such agency intends to seek revocation of the 
     individual's probation or parole.

     In the case of an individual from whom such monthly benefits 
     have been withheld pursuant to clause (iv) or (v), the 
     Commissioner of Social Security may, for good cause shown, 
     pay such withheld benefits to the individual.''; and
       (5) in paragraph (3), by adding at the end the following:
       ``(C) Notwithstanding the provisions of section 552a of 
     title 5, United States Code, or any other provision of 
     Federal or State law (other than section 6103 of the Internal 
     Revenue Code of 1986 and section 1106(c) of this Act), the 
     Commissioner shall furnish any Federal, State, or local law 
     enforcement officer, upon the written request of the officer, 
     with the current address, Social Security number, and 
     photograph (if applicable) of any beneficiary under this 
     title, if the officer furnishes the Commissioner with the 
     name of the beneficiary, and other identifying information as 
     reasonably required by the Commissioner to establish the 
     unique identity of the beneficiary, and notifies the 
     Commissioner that--
       ``(i) the beneficiary is described in clause (iv) or (v) of 
     paragraph (1)(A);
       ``(ii) the Commissioner has information with respect to the 
     beneficiary that is necessary for the officer to conduct the 
     officer's official duties; and
       ``(iii) the location or apprehension of the beneficiary is 
     within the officer's official duties.''.
       (b) Conforming Amendments to Title XVI.--Section 1611(e) of 
     the Social Security Act (42 U.S.C. 1382(e)) is amended--
       (1) in paragraph (4)--
       (A) in subparagraph (A), by striking ``or which, in the 
     case of the State of 
     New Jersey, is a high misdemeanor under the laws of such 
     State'' and inserting ``or, in jurisdictions that do not 
     define crimes as felonies, is punishable by death or 
     imprisonment for a term exceeding 1 year regardless of the 
     actual sentence imposed, and a Federal, State, or local law 
     enforcement agency has notified the Commissioner of Social 
     Security that the agency intends to pursue the person by 
     seeking arrest, extradition, or prosecution'';
       (B) in subparagraph (B), by inserting ``and a Federal, 
     State, or local law enforcement agency has notified the 
     Commissioner of Social Security that the agency intends to 
     seek revocation of the person's probation or parole'' after 
     ``law''; and
       (C) by adding at the end the following sentence after and 
     below subparagraph (B):
     ``In the case of an individual whose eligibility for a month 
     or months has been suspended pursuant to subparagraph (A) or 
     (B), the Commissioner of Social Security may, for good cause 
     shown, restore such individual's eligibility for all such 
     months.''; and
       (2) in paragraph (5), by striking subparagraphs (A) and (B) 
     and inserting the following:
       ``(A) the recipient is described in subparagraph (A) or (B) 
     of paragraph (4);
       ``(B) the Commissioner has information with respect to the 
     recipient that is necessary for the officer to conduct the 
     officer's official duties; and
       ``(C) the location or apprehension of the recipient is 
     within the officer's official duties.''.
       (c) Conforming Amendment.--Section 804(a)(2) of the Social 
     Security Act (42 U.S.C. 1004(a)(2)) is amended by striking 
     ``or which, in the case of the State of New Jersey, is a high 
     misdemeanor under the laws of such State'' and inserting 
     ``or, in jurisdictions that do not define crimes as felonies, 
     is punishable by death or imprisonment for a term exceeding 1 
     year regardless of the actual sentence imposed''.
       (d) 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 sentences of sections 
     202(x)(1)(A) and 1611(e)(4) of the Social Security Act (as 
     amended by subsections (a) and (b), respectively).
       (e) 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:
       ``(4)(A) No person shall offer, for a fee, to assist an 
     individual to obtain a product or service that the person 
     knows or should know is provided free of charge by the Social 
     Security Administration unless, at the time the offer is 
     made, the person provides to the individual to whom the offer 
     is tendered a notice that--
       ``(i) explains that the product or service is available 
     free of charge from the Social Security Administration, and
       ``(ii) complies with standards prescribed by the 
     Commissioner of Social Security respecting the content of 
     such notice and its placement, visibility, and legibility.
       ``(B) Subparagraph (A) shall not apply to any offer--
       ``(i) to serve as a claimant representative in connection 
     with a claim arising under title II, title VIII, or title 
     XVI; or
       ``(ii) to prepare, or assist in the preparation of, an 
     individual's plan for achieving self-support under title 
     XVI.''; and
       (2) in the heading, by striking ``prohibition of misuse of 
     symbols, emblems, or names in reference'' and inserting 
     ``prohibitions relating to references''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to offers of assistance made after the sixth 
     month ending after the Commissioner of Social Security 
     promulgates final regulations prescribing the standards 
     applicable to the notice required to be provided in 
     connection with such offer. The Commissioner shall promulgate 
     such final regulations within 1 year after the date of the 
     enactment of this Act.

     SEC. 205. REFUSAL TO RECOGNIZE CERTAIN INDIVIDUALS AS 
                   CLAIMANT REPRESENTATIVES.

       Section 206(a)(1) of the Social Security Act (42 U.S.C. 
     406(a)(1)) is amended by inserting after the second sentence 
     the following: ``Notwithstanding the preceding sentences, the 
     Commissioner, after due notice and opportunity for hearing, 
     (A) may refuse to recognize as a representative, and may 
     disqualify a representative already recognized, any attorney 
     who has been disbarred or suspended from any court or bar to 
     which he or she was previously admitted to practice or who 
     has been disqualified from participating in or appearing 
     before any Federal program or agency, and (B) may refuse to 
     recognize, and may disqualify, as a non-attorney 
     representative any attorney who has been disbarred or 
     suspended from any court or bar to which he or she was 
     previously admitted to practice. A representative who has 
     been disqualified or suspended pursuant to this section from 
     appearing before the Social Security Administration as a 
     result of collecting or receiving a fee in excess of the 
     amount authorized shall be barred from appearing before the 
     Social Security Administration as a representative until full 
     restitution is made to the claimant and, thereafter, may be 
     considered for reinstatement only under such rules as the 
     Commissioner may prescribe.''.

     SEC. 206. CRIMINAL PENALTY FOR CORRUPT OR FORCIBLE 
                   INTERFERENCE WITH ADMINISTRATION OF SOCIAL 
                   SECURITY ACT.

       Part A of title XI of the Social Security Act (42 U.S.C. 
     1301 et seq.) is amended by inserting after section 1129A the 
     following:


   ``ATTEMPTS TO INTERFERE WITH ADMINISTRATION OF SOCIAL SECURITY ACT

       ``Sec. 1129B. Whoever corruptly or by force or threats of 
     force (including any threatening letter or communication) 
     attempts to intimidate or impede any officer, employee, or 
     contractor of the Social Security Administration (including 
     any State employee of a disability determination service or 
     any other individual designated by the Commissioner of Social 
     Security) acting in an official capacity to carry out a duty 
     under this Act, or in any other way corruptly or by force or 
     threats of force (including any threatening letter or 
     communication) obstructs or impedes, or attempts to obstruct 
     or impede, the due administration of this Act, shall be 
     guilty of a felony and upon conviction thereof 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 guilty of a felony and upon 
     conviction thereof 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.''.

[[Page S16174]]

     SEC. 207. USE OF SYMBOLS, EMBLEMS, OR NAMES IN REFERENCE TO 
                   SOCIAL SECURITY OR MEDICARE.

       (a) In General.--Section 1140(a)(1) of the Social Security 
     Act (42 U.S.C. 1320b-10(a)(1)) is amended--
       (1) in subparagraph (A), by inserting `` `Centers for 
     Medicare & Medicaid Services','' after `` `Health Care 
     Financing Administration','', by striking ``or `Medicaid', '' 
     and inserting `` `Medicaid', `Death Benefits Update', 
     `Federal Benefit Information', `Funeral Expenses', or `Final 
     Supplemental Plan','' and by inserting `` `CMS','' after `` 
     `HCFA','';
       (2) in subparagraph (B), by inserting ``Centers for 
     Medicare & Medicaid Services,'' after ``Health Care Financing 
     Administration,'' each place it appears; and
       (3) in the matter following subparagraph (B), by striking 
     ``the Health Care Financing Administration,'' each place it 
     appears and inserting ``the Centers for Medicare & Medicaid 
     Services,''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to items sent after 180 days after the date of 
     the enactment of this Act.

     SEC. 208. DISQUALIFICATION FROM PAYMENT DURING TRIAL WORK 
                   PERIOD UPON CONVICTION OF FRAUDULENT 
                   CONCEALMENT OF WORK ACTIVITY.

       (a) In General.--Section 222(c) of the Social Security Act 
     (42 U.S.C. 422(c)) is amended by adding at the end the 
     following:
       ``(5) Upon conviction by a Federal court that an individual 
     has fraudulently concealed work activity during a period of 
     trial work from the Commissioner of Social Security by--
       ``(A) providing false information to the Commissioner of 
     Social Security as to whether the individual had earnings in 
     or for a particular period, or as to the amount thereof;
       ``(B) receiving disability insurance benefits under this 
     title while engaging in work activity under another identity, 
     including under another social security account number or a 
     number purporting to be a social security account number; or
       ``(C) taking other actions to conceal work activity with an 
     intent fraudulently to secure payment in a greater amount 
     than is due or when no payment is authorized,
     no benefit shall be payable to such individual under this 
     title with respect to a period of disability for any month 
     before such conviction during which the individual rendered 
     services during the period of trial work with respect to 
     which the fraudulently concealed work activity occurred, and 
     amounts otherwise due under this title as restitution, 
     penalties, assessments, fines, or other repayments shall in 
     all cases be in addition to any amounts for which such 
     individual is liable as overpayments by reason of such 
     concealment.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to work activity performed after the 
     date of the enactment of this Act.

     SEC. 209. AUTHORITY FOR JUDICIAL ORDERS OF RESTITUTION.

       (a) Amendments to Title II.--Section 208 of the Social 
     Security Act (42 U.S.C. 408) is amended--
       (1) by redesignating subsections (b), (c), and (d) as 
     subsections (c), (d), and (e), respectively; and
       (2) by inserting after subsection (a) the following:
       ``(b) Any Federal court, when sentencing a defendant 
     convicted of an offense under subsection (a) that results in 
     the Commissioner of Social Security making a benefit payment 
     (or an increase in such a payment) that should not have been 
     made, shall consider the Commissioner of Social Security a 
     victim of the crime.''.
       (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:
       ``(2) SSA treated as a victim.--Any Federal court, when 
     sentencing a defendant convicted of an offense that results 
     in the Commissioner of Social Security making a benefit 
     payment (or an increase in such a payment) that should not 
     have been made, shall consider the Commissioner of Social 
     Security a victim of the crime.''.
       (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:
       ``(b) Any Federal court, when sentencing a defendant 
     convicted of an offense under subsection (a) that results in 
     the Commissioner of Social Security making a benefit payment 
     (or an increase in such a payment) that should not have been 
     made, shall consider the Commissioner of Social Security a 
     victim of the crime.''.
       (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:
       ``(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.

     SEC. 210. INFORMATION FOR ADMINISTRATION OF PROVISIONS 
                   RELATED TO NONCOVERED EMPLOYMENT.

       (a) Collection.--Paragraph (2) of section 6047(d) of the 
     Internal Revenue Code of 1986 (relating to reports by 
     employers, plan administrators, etc.) is amended by adding at 
     the end the following new sentence: ``In the case of any 
     employer deferred compensation plan (as defined in section 
     3405(e)(5)) of a State, a political subdivision thereof, or 
     any agency or instrumentality of either, the Secretary shall 
     in such forms or regulations require the identification of 
     any designated distribution (as so defined) if paid to any 
     participant or beneficiary of such plan based in whole or in 
     part upon an individual's earnings for service in the employ 
     of any such governmental entity which did not constitute 
     employment (as defined in section 3121(b)).''.
       (b) Disclosure.--Section 6103(l)(1) of the Internal Revenue 
     Code of 1986 (relating to disclosure of certain returns and 
     return information to Social Security Administration and 
     Railroad Retirement Board) is amended--
       (1) in subparagraph (B), by striking ``and''; and
       (2) in subparagraph (C), by striking the period and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(D) any designated distribution described in the second 
     sentence of section 6047(d)(2) to the Social Security 
     Administration for purposes of its administration of the 
     Social Security Act.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to distributions made after December 31, 2003.

     SEC. 211. AUTHORITY FOR CROSS-PROGRAM RECOVERY OF BENEFIT 
                   OVERPAYMENTS.

       (a) In General.--Section 1147 of the Social Security Act 
     (42 U.S.C. 1320b-17) is amended to read as follows:


         ``cross-program recovery of overpayments from benefits

       ``(a) In General.--Subject to subsection (b), whenever the 
     Commissioner of Social Security determines that more than the 
     correct amount of any payment has been made to a person under 
     a program described in subsection (e), the Commissioner of 
     Social Security may recover the amount incorrectly paid by 
     decreasing any amount which is payable to such person under 
     any other program specified in that subsection.
       ``(b) Limitation Applicable to Current Benefits.--
       ``(1) In general.--In carrying out subsection (a), the 
     Commissioner of Social Security may not decrease the monthly 
     amount payable to an individual under a program described in 
     subsection (e) that is paid when regularly due--
       ``(A) in the case of benefits under title II or VIII, by 
     more than 10 percent of the amount of the benefit payable to 
     the person for that month under such title; and
       ``(B) in the case of benefits under title XVI, by an amount 
     greater than the lesser of--
       ``(i) the amount of the benefit payable to the person for 
     that month; or
       ``(ii) an amount equal to 10 percent of the person's income 
     for that month (including such monthly benefit but excluding 
     payments under title II when recovery is also made from title 
     II payments and excluding income excluded pursuant to section 
     1612(b)).
       ``(2) Exception.--Paragraph (1) shall not apply if--
       ``(A) the person or the spouse of the person was involved 
     in willful misrepresentation or concealment of material 
     information in connection with the amount incorrectly paid; 
     or
       ``(B) the person so requests.
       ``(c) No Effect on Eligibility or Benefit Amount Under 
     Title VIII or XVI.--In any case in which the Commissioner of 
     Social Security takes action in accordance with subsection 
     (a) to recover an amount incorrectly paid to any person, 
     neither that person, nor (with respect to the program 
     described in subsection (e)(3)) any individual whose 
     eligibility for benefits under such program or whose amount 
     of such benefits, is determined by considering any part of 
     that person's income, shall, as a result of such action--
       ``(1) become eligible for benefits under the program 
     described in paragraph (2) or (3) of subsection (e); or
       ``(2) if such person or individual is otherwise so 
     eligible, become eligible for increased benefits under such 
     program.
       ``(d) Inapplicability of Prohibition Against Assessment and 
     Legal Process.--Section 207 shall not apply to actions taken 
     under the provisions of this section to decrease amounts 
     payable under titles II and XVI.
       ``(e) Programs Described.--The programs described in this 
     subsection are the following:
       ``(1) The old-age, survivors, and disability insurance 
     benefits program under title II.
       ``(2) The special benefits for certain World War II 
     veterans program under title VIII.
       ``(3) The supplemental security income benefits program 
     under title XVI (including, for purposes of this section, 
     State supplementary payments paid by the Commissioner 
     pursuant to an agreement under section 1616(a) of this Act or 
     section 212(b) of Public Law 93-66).''.

[[Page S16175]]

       (b) Conforming Amendments.--
       (1) Section 204(g) of the Social Security Act (42 U.S.C. 
     404(g)) is amended to read as follows:
       ``(g) For provisions relating to the cross-program recovery 
     of overpayments made under programs administered by the 
     Commissioner of Social Security, see section 1147.''.
       (2) Section 808 of the Social Security Act (42 U.S.C. 1008) 
     is amended--
       (A) in subsection (a)(1)--
       (i) by striking subparagraph (B);
       (ii) in the matter preceding subparagraph (A), by striking 
     ``any payment'' and all that follows through ``under this 
     title'' and inserting ``any payment under this title''; and
       (iii) by striking ``; or'' and inserting a period;
       (B) by striking subsection (b) and redesignating 
     subsections (c), (d), and (e) as subsections (b), (c), and 
     (d), respectively; and
       (C) by adding at the end the following:
       ``(e) Cross-Program Recovery of Overpayments.--For 
     provisions relating to the cross-program recovery of 
     overpayments made under programs administered by the 
     Commissioner of Social Security, see section 1147.''.
       (3) Section 1147A of the Social Security Act (42 U.S.C. 
     1320b-18) is repealed.
       (4) Section 1631(b) of the Social Security Act (42 U.S.C. 
     1383(b)) is amended--
       (A) in paragraph (1)(B)--
       (i) by striking ``excluding any other'' and inserting 
     ``excluding payments under title II when recovery is made 
     from title II payments pursuant to section 1147 and 
     excluding''; and
       (ii) by striking ``50 percent of''; and
       (B) by striking paragraph (6) and inserting the following:
       ``(6) For provisions relating to the cross-program recovery 
     of overpayments made under programs administered by the 
     Commissioner of Social Security, see section 1147.''.
       (c) Effective Date.--The amendments and repeal made by this 
     section shall take effect on the date of enactment of this 
     Act, and shall be effective with respect to overpayments 
     under titles II, VIII, and XVI of the Social Security Act 
     that are outstanding on or after such date.

     SEC. 212. PROHIBITION ON PAYMENT OF TITLE II BENEFITS TO 
                   PERSONS NOT AUTHORIZED TO WORK IN THE UNITED 
                   STATES.

       (a) Fully Insured and Currently Insured Individuals.--
     Section 214 (42 U.S.C. 414) is amended--
       (1) in subsection (a), by inserting before the period at 
     the end the following: ``, and who satisfies the criterion 
     specified in subsection (c)'';
       (2) in subsection (b), by inserting before the period at 
     the end the following: ``, and who satisfies the criterion 
     specified in subsection (c)''; and
       (3) by adding at the end the following:
       ``(c) For purposes of subsections (a) and (b), the 
     criterion specified in this subsection is that the 
     individual, if not a United States citizen or national, has 
     been assigned a social security account number that was, at 
     the time of assignment, or at any later time, consistent with 
     the requirements of subclause (I) or (III) of section 
     205(c)(2)(B)(i).''.
       (b) Disability Benefits.--Section 223(a)(1) of the Social 
     Security Act (42 U.S.C. 423(a)(1)) is amended--
       (1) by redesignating subparagraphs (C) and (D) as 
     subparagraphs (D) and (E), respectively; and
       (2) by inserting after subparagraph (B), the following:
       ``(C) if not a United States citizen or national, has been 
     assigned a social security account number that was, at the 
     time of assignment, or at any later time, consistent with the 
     requirements of subclause (I) or (III) of section 
     205(c)(2)(B)(i),''.
       (c) Effective Date.--The amendments made by this section 
     apply to benefit applications filed on or after January 1, 
     2004.

   TITLE III--ATTORNEY REPRESENTATIVE FEE PAYMENT SYSTEM IMPROVEMENTS

     SEC. 301. CAP ON ATTORNEY ASSESSMENTS.

       (a) In General.--Section 206(d)(2)(A) of the Social 
     Security Act (42 U.S.C. 406(d)(2)(A)) is amended--
       (1) by inserting ``, except that the maximum amount of the 
     assessment may not exceed the greater of $75 or the adjusted 
     amount as provided pursuant to the following two sentences'' 
     after ``subparagraph (B)''; and
       (2) by adding at the end the following: ``In the case of 
     any calendar year beginning after the amendments made by 
     section 301 of the Social Security Protection Act of 2003 
     take effect, the dollar amount specified in the preceding 
     sentence (including a previously adjusted amount) shall be 
     adjusted annually under the procedures used to adjust benefit 
     amounts under section 215(i)(2)(A)(ii), except such 
     adjustment shall be based on the higher of $75 or the 
     previously adjusted amount that would have been in effect for 
     December of the preceding year, but for the rounding of such 
     amount pursuant to the following sentence. Any amount so 
     adjusted that is not a multiple of $1 shall be rounded to the 
     next lowest multiple of $1, but in no case less than 
     $75.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply with respect to fees for representation of 
     claimants which are first required to be certified or paid 
     under section 206 of the Social Security Act on or after the 
     first day of the first month that begins after 180 days after 
     the date of the enactment of this Act.

     SEC. 302. GAO STUDY REGARDING FEE PAYMENT PROCESS FOR 
                   CLAIMANT REPRESENTATIVES.

       (a) Study.--
       (1) In general.--The Comptroller General of the United 
     States shall study and evaluate the appointment and payment 
     of claimant representatives under titles II and XVI of the 
     Social Security Act (42 U.S.C. 401 et seq., 1381 et seq.).
       (2) Consultation required.--The Comptroller General shall 
     consult with beneficiaries under title II of such Act, 
     beneficiaries under title XVI of such Act, claimant 
     representatives of beneficiaries under such titles, and other 
     interested parties, in conducting the study and evaluation 
     required under paragraph (1).
       (b) Report.--Not later than 2 years after the date of 
     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 that includes the following:
       (1) A survey of the relevant characteristics of claimant 
     representatives that provides statistically significant 
     results for characteristics which include (but are not 
     limited to)--
       (A) qualifications and experience;
       (B) the type of employment of such representatives, such as 
     with an advocacy group, State or local government, or 
     insurance or other company;
       (C) geographical distribution between urban and rural 
     areas;
       (D) the nature of claimants' cases, such as whether the 
     cases are for disability insurance benefits only, 
     supplemental security income benefits only, or concurrent 
     benefits;
       (E) the relationship of such representatives to claimants, 
     such as whether the representative is a friend, family 
     member, or client of the claimant; and
       (F) the amount of compensation (if any) paid to the 
     representatives and the method of payment of such 
     compensation.
       (2) An assessment of the quality and effectiveness of the 
     services provided by claimant representatives, including a 
     comparison of claimant satisfaction or complaints and benefit 
     outcomes, adjusted for differences in representatives' 
     caseload, claimants' diagnostic group, level of decision, and 
     other relevant factors.
       (3) An assessment of the costs and benefits of the 
     appointment and payment of representatives with respect to 
     claimant satisfaction or complaints, benefit outcomes, and 
     program administration.
       (4) An assessment of the potential results, including the 
     effect on claimants and program administration, of extending 
     to title XVI of the Social Security Act the fee withholding 
     procedures which apply under title II of that Act and of 
     allowing non-attorney representatives to be subject to any 
     fee withholding procedures applicable under title II and XVI 
     of such Act, and whether the rules and procedures employed by 
     the Commissioner of Social Security to evaluate the 
     qualifications and performance of claimant representatives 
     should be revised prior to any extensions of fee withholding.

            TITLE IV--MISCELLANEOUS AND TECHNICAL AMENDMENTS

    Subtitle A--Amendments Relating to the Ticket to Work and Work 
                   Incentives Improvement Act of 1999

     SEC. 401. ELIMINATION OF DEMONSTRATION AUTHORITY SUNSET DATE.

       Section 234(d)(2) of the Social Security Act (42 U.S.C. 
     434(d)(2)) is amended--
       (1) in the paragraph heading, by striking ``Termination and 
     final'' and inserting ``Final''; and
       (2) by striking the first sentence.

     SEC. 402. EXPANSION OF WAIVER AUTHORITY AVAILABLE IN 
                   CONNECTION WITH DEMONSTRATION PROJECTS 
                   PROVIDING FOR REDUCTIONS IN DISABILITY 
                   INSURANCE BENEFITS BASED ON EARNINGS.

       Section 302(c) of the Ticket to Work and Work Incentives 
     Improvement Act of 1999 (42 U.S.C. 434 note) is amended by 
     striking ``(42 U.S.C. 401 et seq.),'' and inserting ``(42 
     U.S.C. 401 et seq.) and the requirements of section 1148 of 
     such Act (42 U.S.C. 1320b-19) as they relate to the program 
     established under title II of such Act,''.

     SEC. 403. FUNDING OF DEMONSTRATION PROJECTS PROVIDING FOR 
                   REDUCTIONS IN DISABILITY INSURANCE BENEFITS 
                   BASED ON EARNINGS.

       Section 302(f) of the Ticket to Work and Work Incentives 
     Improvement Act of 1999 (42 U.S.C. 434 note) is amended to 
     read as follows:
       ``(f) Expenditures.--Administrative expenses for 
     demonstration projects under this section shall be paid from 
     funds available for the administration of title II or XVIII 
     of the Social Security Act, as appropriate. Benefits payable 
     to or on behalf of individuals by reason of participation in 
     projects under this section shall be made from the Federal 
     Disability Insurance Trust Fund and the Federal Old-Age and 
     Survivors Insurance Trust Fund, as determined appropriate by 
     the Commissioner of Social Security, and from the Federal 
     Hospital Insurance Trust Fund and the Federal Supplementary 
     Medical Insurance Trust Fund, as determined appropriate by 
     the Secretary of Health and Human Services, from funds 
     available for benefits under such title II or XVIII.''.

     SEC. 404. AVAILABILITY OF FEDERAL AND STATE WORK INCENTIVE 
                   SERVICES TO ADDITIONAL INDIVIDUALS.

       (a) Federal Work Incentives Outreach Program.--
       (1) In general.--Section 1149(c)(2) of the Social Security 
     Act (42 U.S.C. 1320b-20(c)(2)) is amended to read as follows:
       ``(2) Disabled beneficiary.--The term `disabled 
     beneficiary' means an individual--
       ``(A) who is a disabled beneficiary as defined in section 
     1148(k)(2) of this Act;
       ``(B) who is receiving a cash payment described in section 
     1616(a) of this Act or a supplementary payment described in 
     section 212(a)(3) of Public Law 93-66 (without regard to 
     whether such payment is paid by the Commissioner pursuant to 
     an agreement under section 1616(a) of

[[Page S16176]]

     this Act or under section 212(b) of Public Law 93-66);
       ``(C) who, pursuant to section 1619(b) of this Act, is 
     considered to be receiving benefits under title XVI of this 
     Act; or
       ``(D) who is entitled to benefits under part A of title 
     XVIII of this Act by reason of the penultimate sentence of 
     section 226(b) of this Act.''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply with respect to grants, cooperative agreements, 
     or contracts entered into on or after the date of the 
     enactment of this Act.
       (b) State Grants for Work Incentives Assistance.--
       (1) Definition of disabled beneficiary.--Section 1150(g)(2) 
     of such Act (42 U.S.C. 1320b-21(g)(2)) is amended to read as 
     follows:
       ``(2) Disabled beneficiary.--The term `disabled 
     beneficiary' means an individual--
       ``(A) who is a disabled beneficiary as defined in section 
     1148(k)(2) of this Act;
       ``(B) who is receiving a cash payment described in section 
     1616(a) of this Act or a supplementary payment described in 
     section 212(a)(3) of Public Law 93-66 (without regard to 
     whether such payment is paid by the Commissioner pursuant to 
     an agreement under section 1616(a) of this Act or under 
     section 212(b) of Public Law 93-66);
       ``(C) who, pursuant to section 1619(b) of this Act, is 
     considered to be receiving benefits under title XVI of this 
     Act; or
       ``(D) who is entitled to benefits under part A of title 
     XVIII of this Act by reason of the penultimate sentence of 
     section 226(b) of this Act.''.
       (2) Advocacy or other services needed to maintain gainful 
     employment.--Section 1150(b)(2) of such Act (42 U.S.C. 1320b-
     21(b)(2)) is amended by striking ``secure or regain'' and 
     inserting ``secure, maintain, or regain''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply with respect to payments provided after the date 
     of the enactment of this Act.

     SEC. 405. TECHNICAL AMENDMENT CLARIFYING TREATMENT FOR 
                   CERTAIN PURPOSES OF INDIVIDUAL WORK PLANS UNDER 
                   THE TICKET TO WORK AND SELF-SUFFICIENCY 
                   PROGRAM.

       (a) In General.--Section 1148(g)(1) of the Social Security 
     Act (42 U.S.C. 1320b-19(g)(1)) is amended by adding at the 
     end, after and below subparagraph (E), the following:
     ``An individual work plan established pursuant to this 
     subsection shall be treated, for purposes of section 
     51(d)(6)(B)(i) of the Internal Revenue Code of 1986, as an 
     individualized written plan for employment under a State plan 
     for vocational rehabilitation services approved under the 
     Rehabilitation Act of 1973.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect as if included in section 505 of the Ticket 
     to Work and Work Incentives Improvement Act of 1999 (Public 
     Law 106-170; 113 Stat. 1921).

     SEC. 406. GAO STUDY REGARDING THE TICKET TO WORK AND SELF-
                   SUFFICIENCY PROGRAM.

       (a) GAO Report.--Not later than 12 months after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall submit a report to Congress regarding the Ticket 
     to Work and Self-Sufficiency Program established under 
     section 1148 of the Social Security Act (42 U.S.C. 1320b-19) 
     that--
       (1) examines the annual and interim reports issued by 
     States, the Ticket to Work and Work Incentives Advisory Panel 
     established under section 101(f) of the Ticket to Work and 
     Work Incentives Improvement Act of 1999 (42 U.S.C. 1320b-19 
     note), and the Commissioner of Social Security regarding such 
     program;
       (2) assesses the effectiveness of the activities carried 
     out under such program; and
       (3) recommends such legislative or administrative changes 
     as the Comptroller General determines are appropriate to 
     improve the effectiveness of such program.

                  Subtitle B--Miscellaneous Amendments

     SEC. 411. ELIMINATION OF TRANSCRIPT REQUIREMENT IN REMAND 
                   CASES FULLY FAVORABLE TO THE CLAIMANT.

       (a) In General.--Section 205(g) of the Social Security Act 
     (42 U.S.C. 405(g)) is amended in the sixth sentence by 
     striking ``and a transcript'' and inserting ``and, in any 
     case in which the Commissioner has not made a decision fully 
     favorable to the individual, a transcript''.
       (b) Effective Date.--The amendment made by this section 
     shall apply with respect to final determinations issued (upon 
     remand) on or after the date of the enactment of this Act.

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

       (a) In General.--Section 202(n) of the Social Security Act 
     (42 U.S.C. 402(n)) is amended--
       (1) in paragraph (1), by striking ``section 241(a) (other 
     than under paragraph (1)(C) or (1)(E) thereof) of the 
     Immigration and Nationality Act'' and inserting ``section 
     237(a) of the Immigration and Nationality Act (other than 
     under paragraph (1)(C) of such section) or under section 
     212(a)(6)(A) of such Act'';
       (2) in paragraph (2), by striking ``section 241(a) of the 
     Immigration and Nationality Act (other than under paragraph 
     (1)(C) or (1)(E) thereof)'' and inserting ``section 237(a) of 
     the Immigration and Nationality Act (other than under 
     paragraph (1)(C) of such section) or under section 
     212(a)(6)(A) of such Act'';
       (3) in paragraph (3), by striking ``paragraph (19) of 
     section 241(a) of the Immigration and Nationality Act 
     (relating to persecution of others on account of race, 
     religion, national origin, or political opinion, under the 
     direction of or in association with the Nazi government of 
     Germany or its allies) shall be considered to have been 
     deported under such paragraph (19)'' and inserting 
     ``paragraph (4)(D) of section 241(a) of the Immigration and 
     Nationality Act (relating to participating in Nazi 
     persecutions or genocide) shall be considered to have been 
     deported under such paragraph (4)(D)''; and
       (4) in paragraph (3) (as amended by paragraph (3) of this 
     subsection), by striking ``241(a)'' and inserting ``237(a)''.
       (b) Technical Corrections.--
       (1) Terminology regarding removal from the united states.--
     Section 202(n) of the Social Security Act (42 U.S.C. 402(n)) 
     (as amended by subsection (a)) is amended further--
       (A) by striking ``deportation'' each place it appears and 
     inserting ``removal'';
       (B) by striking ``deported'' each place it appears and 
     inserting ``removed''; and
       (C) in the heading, by striking ``Deportation'' and 
     inserting ``Removal''.
       (2) References to the secretary of homeland security.--
     Section 202(n) of the Social Security Act (42 U.S.C. 402(n)) 
     (as amended by subsection (a) and paragraph (1)) is amended 
     further by inserting ``or the Secretary of Homeland 
     Security'' after ``the Attorney General'' each place it 
     appears.
       (c) Effective Dates.--
       (1) In general.--The amendment made by--
       (A) subsection (a)(1) shall apply to individuals with 
     respect to whom the Commissioner of Social Security receives 
     a removal notice after the date of the enactment of this Act;
       (B) subsection (a)(2) shall apply with respect to 
     notifications of removals received by the Commissioner of 
     Social Security after the date of enactment of this Act; and
       (C) subsection (a)(3) shall be effective as if enacted on 
     March 1, 1991.
       (2) Subsequent correction of cross-reference and 
     terminology.--The amendments made by subsections (a)(4) and 
     (b)(1) shall be effective as if enacted on April 1, 1997.
       (3) References to the secretary of homeland security.--The 
     amendment made by subsection (b)(2) shall be effective as if 
     enacted on March 1, 2003.

     SEC. 413. REINSTATEMENT OF CERTAIN REPORTING REQUIREMENTS.

       Section 3003(a)(1) of the Federal Reports Elimination and 
     Sunset Act of 1995 (31 U.S.C. 1113 note) shall not apply to 
     any report required to be submitted under any of the 
     following provisions of law:
       (1)(A) Section 201(c)(2) of the Social Security Act (42 
     U.S.C. 401(c)(2)).
       (B) Section 1817(b)(2) of the Social Security Act (42 
     U.S.C. 1395i(b)(2)).
       (C) Section 1841(b)(2) of the Social Security Act (42 
     U.S.C. 1395t(b)(2)).
       (2)(A) Section 221(c)(3)(C) of the Social Security Act (42 
     U.S.C. 421(c)(3)(C)).
       (B) Section 221(i)(3) of the Social Security Act (42 U.S.C. 
     421(i)(3)).

     SEC. 414. CLARIFICATION OF DEFINITIONS REGARDING CERTAIN 
                   SURVIVOR BENEFITS.

       (a) Widows.--Section 216(c) of the Social Security Act (42 
     U.S.C. 416(c)) is amended--
       (1) by redesignating subclauses (A) through (C) of clause 
     (6) as subclauses (i) through (iii), respectively;
       (2) by redesignating clauses (1) through (6) as clauses (A) 
     through (F), respectively;
       (3) in clause (E) (as redesignated), by inserting ``except 
     as provided in paragraph (2),'' before ``she was married'';
       (4) by inserting ``(1)'' after ``(c)''; and
       (5) by adding at the end the following:
       ``(2) The requirements of paragraph (1)(E) in connection 
     with the surviving wife of an individual shall be treated as 
     satisfied if--
       ``(A) the individual had been married prior to the 
     individual's marriage to the surviving wife,
       ``(B) the prior wife was institutionalized during the 
     individual's marriage to the prior wife due to mental 
     incompetence or similar incapacity,
       ``(C) during the period of the prior wife's 
     institutionalization, the individual would have divorced the 
     prior wife and married the surviving wife, but the individual 
     did not do so because such divorce would have been unlawful, 
     by reason of the prior wife's institutionalization, under the 
     laws of the State in which the individual was domiciled at 
     the time (as determined based on evidence satisfactory to the 
     Commissioner of Social Security),
       ``(D) the prior wife continued to remain institutionalized 
     up to the time of her death, and
       ``(E) the individual married the surviving wife within 60 
     days after the prior wife's death.''.
       (b) Widowers.--Section 216(g) of such Act (42 U.S.C. 
     416(g)) is amended--
       (1) by redesignating subclauses (A) through (C) of clause 
     (6) as subclauses (i) through (iii), respectively;
       (2) by redesignating clauses (1) through (6) as clauses (A) 
     through (F), respectively;
       (3) in clause (E) (as redesignated), by inserting ``except 
     as provided in paragraph (2),'' before ``he was married'';
       (4) by inserting ``(1)'' after ``(g)''; and
       (5) by adding at the end the following:
       ``(2) The requirements of paragraph (1)(E) in connection 
     with the surviving husband of an individual shall be treated 
     as satisfied if--
       ``(A) the individual had been married prior to the 
     individual's marriage to the surviving husband,
       ``(B) the prior husband was institutionalized during the 
     individual's marriage to the prior husband due to mental 
     incompetence or similar incapacity,
       ``(C) during the period of the prior husband's 
     institutionalization, the individual would have divorced the 
     prior husband and married the surviving husband, but the 
     individual did not do so because such divorce would have been 
     unlawful, by reason of the prior husband's 
     institutionalization, under the laws of the State in which 
     the individual was domiciled at the time (as determined based 
     on evidence satisfactory to the Commissioner of Social 
     Security),
       ``(D) the prior husband continued to remain 
     institutionalized up to the time of his death, and

[[Page S16177]]

       ``(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.

       (a) In General.--Section 218(d)(6)(C) of the Social 
     Security Act (42 U.S.C. 418(d)(6)(C)) is amended by striking 
     ``the State of Alaska, California, Connecticut, Florida, 
     Georgia, Illinois, Massachusetts, Minnesota, Nevada, New 
     Jersey, New Mexico, New York, North Dakota, Pennsylvania, 
     Rhode Island, Tennessee, Texas, Vermont, Washington, 
     Wisconsin, or Hawaii'' and inserting ``a State''.
       (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 
                   GOVERNMENT PENSION OFFSET EXEMPTION.

       (a) Wife's Insurance Benefits.--Section 202(b)(4) of the 
     Social Security Act (42 U.S.C. 402(b)(4)) is amended--
       (1) in subparagraph (A), by striking ``if, on the last day 
     she was employed by such entity'' and inserting ``if, during 
     any portion of such service''; and
       (2) in subparagraph (B)--
       (A) in clause (ii), by striking ``Subparagraph (A)(ii)'' 
     and inserting ``Clauses (i) and (ii) of subparagraph (A)''; 
     and
       (B) by adding at the end the following:
       ``(iii) Subparagraph (A)(i) shall not apply with respect to 
     monthly periodic benefits based in whole or in part on 
     service which constituted `employment' as defined in section 
     210 pursuant to an agreement executed with the Commissioner 
     of Social Security under section 218, provided that the wife 
     (or divorced wife) was employed in such service--
       ``(I) on the date of enactment of this clause and such 
     service was continuous throughout the 60-month period ending 
     on the last day the wife (or divorced wife) was employed in 
     the service of the State (or political subdivision thereof, 
     as defined in section 218(b)(2)), or
       ``(II) in the case of such an agreement that was executed 
     by the Commissioner of Social Security after the date of 
     enactment of this clause, on the date such an agreement was 
     executed by the Commissioner of Social Security and such 
     service was continuous throughout the 60-month period ending 
     on the last day the wife (or divorced wife) was employed in 
     the service of the State (or political subdivision thereof, 
     as so defined).''.
       (b) Husband's Insurance Benefits.--Section 202(c)(2) of 
     such Act (42 U.S.C. 402(c)(2)) is amended--
       (1) in subparagraph (A), by striking ``if, on the last day 
     he was employed by such entity'' and inserting ``if, during 
     any portion of such service''; and
       (2) in subparagraph (B)--
       (A) in clause (ii), by striking ``Subparagraph (A)(ii)'' 
     and inserting ``Clauses (i) and (ii) of subparagraph (A)''; 
     and
       (B) by adding at the end the following:
       ``(iii) Subparagraph (A)(i) shall not apply with respect to 
     monthly periodic benefits based in whole or in part on 
     service which constituted `employment' as defined in section 
     210 pursuant to an agreement executed with the Commissioner 
     of Social Security under section 218, provided that the 
     husband (or divorced husband) was employed in such service--
       ``(I) on the date of enactment of this clause and such 
     service was continuous throughout the 60-month period ending 
     on the last day the husband (or divorced husband) was 
     employed in the service of the State (or political 
     subdivision thereof, as defined in section 218(b)(2)), or
       ``(II) in the case of such an agreement that was executed 
     by the Commissioner of Social Security after the date of 
     enactment of this clause, on the date such an agreement was 
     executed by the Commissioner of Social Security and such 
     service was continuous throughout the 60-month period ending 
     on the last day the husband (or divorced husband) was 
     employed in the service of the State (or political 
     subdivision thereof, as so defined).''.
       (c) Widow's Insurance Benefits.--Section 202(e)(7) of such 
     Act (42 U.S.C. 402(e)(7)) is amended--
       (1) in subparagraph (A), by striking ``if, on the last day 
     she was employed by such entity'' and inserting ``if, during 
     any portion of such service''; and
       (2) in subparagraph (B)--
       (A) in clause (ii), by striking ``Subparagraph (A)(ii)'' 
     and inserting ``Clauses (i) and (ii) of subparagraph (A)''; 
     and
       (B) by adding at the end the following:
       ``(iii) Subparagraph (A)(i) shall not apply with respect to 
     monthly periodic benefits based in whole or in part on 
     service which constituted `employment' as defined in section 
     210 pursuant to an agreement executed with the Commissioner 
     of Social Security under section 218, provided that the widow 
     (or surviving divorced wife) was employed in such service--
       ``(I) on the date of enactment of this clause and such 
     service was continuous throughout the 60-month period ending 
     on the last day the widow (or surviving divorced wife) was 
     employed in the service of the State (or political 
     subdivision thereof, as defined in section 218(b)(2)), or
       ``(II) in the case of such an agreement that was executed 
     by the Commissioner of Social Security after the date of 
     enactment of this clause, on the date such an agreement was 
     executed by the Commissioner of Social Security and such 
     service was continuous throughout the 60-month period ending 
     on the last day the widow (or surviving divorced wife) was 
     employed in the service of the State (or political 
     subdivision thereof, as so defined).''.
       (d) Widower's Insurance Benefits.--Section 202(f)(2) of 
     such Act (42 U.S.C. 402(f)(2)) is amended--
       (1) in subparagraph (A), by striking ``if, on the last day 
     he was employed by such entity'' and inserting ``if, during 
     any portion of such service''; and
       (2) in subparagraph (B)--
       (A) in clause (ii), by striking ``Subparagraph (A)(ii)'' 
     and inserting ``Clauses (i) and (ii) of subparagraph (A)''; 
     and
       (B) by adding at the end the following:
       ``(iii) Subparagraph (A)(i) shall not apply with respect to 
     monthly periodic benefits based in whole or in part on 
     service which constituted `employment' as defined in section 
     210 pursuant to an agreement executed with the Commissioner 
     of Social Security under section 218, provided that the 
     widower (or surviving divorced husband) was employed in such 
     service--
       ``(I) on the date of enactment of this clause and such 
     service was continuous throughout the 60-month period ending 
     on the last day the widower (or surviving divorced husband) 
     was employed in the service of the State (or political 
     subdivision thereof, as defined in section 218(b)(2)), or
       ``(II) in the case of such an agreement that was executed 
     by the Commissioner of Social Security after the date of 
     enactment of this clause, on the date such an agreement was 
     executed by the Commissioner of Social Security and such 
     service was continuous throughout the 60-month period ending 
     on the last day the widower (or surviving divorced husband) 
     was employed in the service of the State (or political 
     subdivision thereof, as so defined).''.
       (e) Mother's and Father's Insurance Benefits.--Section 
     202(g)(4) of the such Act (42 U.S.C. 402(g)(4)) is amended--
       (1) in subparagraph (A), by striking ``if, on the last day 
     the individual was employed by such entity'' and inserting 
     ``if, during any portion of such service''; and
       (2) in subparagraph (B)--
       (A) in clause (ii), by striking ``Subparagraph (A)(ii)'' 
     and inserting ``Clauses (i) and (ii) of subparagraph (A)''; 
     and
       (B) by adding at the end the following:
       ``(iii) Subparagraph (A)(i) shall not apply with respect to 
     monthly periodic benefits based in whole or in part on 
     service which constituted `employment' as defined in section 
     210 pursuant to an agreement executed with the Commissioner 
     of Social Security under section 218, provided that the 
     individual was employed in such service--
       ``(I) on the date of enactment of this clause and such 
     service was continuous throughout the 60-month period ending 
     on the last day the individual was employed in the service of 
     the State (or political subdivision thereof, as defined in 
     section 218(b)(2)), or
       ``(II) in the case of such an agreement that was executed 
     by the Commissioner of Social Security after the date of 
     enactment of this clause, on the date such an agreement was 
     executed by the Commissioner of Social Security and such 
     service was continuous throughout the 60-month period ending 
     on the last day the individual was employed in the service of 
     the State (or political subdivision thereof, as so 
     defined).''.
       (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 with respect to applications for benefits under 
     title II of the Social Security Act based on earnings while 
     in the service of any State (or political subdivision 
     thereof, as defined in section 218(b)(2) of the Social 
     Security Act)--
       (1) if the last day of such service occurs before December 
     31, 2003, or
       (2) in any case in which the last day of such service 
     occurs before June 30, 2004, subject to a contract for such 
     service entered into prior to September 30, 2003.

[[Page S16178]]

     SEC. 419. POST-1956 MILITARY WAGE CREDITS.

       (a) Payment to the Social Security Trust Funds in 
     Satisfaction of Outstanding Obligations.--Section 201 of the 
     Social Security Act (42 U.S.C. 401) is amended by adding at 
     the end the following:
       ``(n) Not later than July 1, 2004, the Secretary of the 
     Treasury shall transfer, from amounts in the general fund of 
     the Treasury that are not otherwise appropriated--
       ``(1) $624,971,854 to the Federal Old-Age and Survivors 
     Insurance Trust Fund;
       ``(2) $105,379,671 to the Federal Disability Insurance 
     Trust Fund; and
       ``(3) $173,306,134 to the Federal Hospital Insurance Trust 
     Fund.
     Amounts transferred in accordance with this subsection shall 
     be in satisfaction of certain outstanding obligations for 
     deemed wage credits for 2000 and 2001.''.
       (b) Conforming Amendments.--
       (1) Repeal of authority for annual appropriations and 
     related adjustments to compensate the social security trust 
     fund for military wage credits.--Section 229 of the Social 
     Security Act (42 U.S.C. 429) is amended--
       (A) by striking ``(a)''; and
       (B) by striking subsection (b).
       (2) Amendment to reflect the termination of wage credits 
     effective after calendar year 2001 by section 8134 of public 
     law 107-117.--Section 229(a)(2) of the Social Security Act 
     (42 U.S.C. 429(a)(2)), as amended by paragraph (1), is 
     amended by inserting ``and before 2002'' after ``1977''.

                    Subtitle C--Technical Amendments

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

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

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

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

     SEC. 423. TECHNICAL CORRECTIONS RELATING TO DOMESTIC 
                   EMPLOYMENT.

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

     SEC. 424. TECHNICAL CORRECTIONS OF OUTDATED REFERENCES.

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

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

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

     SEC. 426. TECHNICAL AMENDMENTS TO THE RAILROAD RETIREMENT AND 
                   SURVIVORS' IMPROVEMENT ACT OF 2001.

       (a) Quorum Rules.--Section 15(j)(7) of the Railroad 
     Retirement Act of 1974 (45 U.S.C. 231n(j)(7)) is amended by 
     striking ``entire Board of Trustees'' and inserting 
     ``Trustees then holding office''.
       (b) Powers of the Board of Trustees.--Section 15(j)(4) of 
     the Railroad Retirement Act of 1974 (45 U.S.C. 231n(j)(4)) is 
     amended to read as follows:
       ``(4) Powers of the board of trustees.--The Board of 
     Trustees shall--
       ``(A) retain independent advisers to assist it in the 
     formulation and adoption of its investment guidelines;
       ``(B) invest assets of the Trust in a manner consistent 
     with such investment guidelines, either directly or through 
     the retention of independent investment managers;
       ``(C) adopt bylaws and other rules to govern its 
     operations;
       ``(D) employ professional staff, and contract with outside 
     advisers, including the Railroad Retirement Board, to provide 
     legal, accounting, investment advisory or management services 
     (compensation for which may be on a fixed contract fee basis 
     or on such other terms as are customary for such services), 
     or other services necessary for the proper administration of 
     the Trust;
       ``(E) sue and be sued and participate in legal proceedings, 
     have and use a seal, conduct business, carry on operations, 
     and exercise its powers within or without the District of 
     Columbia, form, own, or participate in entities of any kind, 
     enter into contracts and agreements necessary to carry out 
     its business purposes, lend money for such purposes, and deal 
     with property as security for the payment of funds so loaned, 
     and possess and exercise any other powers appropriate to 
     carry out the purposes of the Trust;
       ``(F) pay administrative expenses of the Trust from the 
     assets of the Trust; and
       ``(G) transfer money to the disbursing agent or as 
     otherwise provided in section 7(b)(4), to pay benefits 
     payable under this Act from the assets of the Trust.''.
       (c) State and Local Taxes.--Section 15(j)(6) of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231n(j)(6)) is 
     amended to read as follows:
       ``(6) State and local taxes.--The Trust shall be exempt 
     from any income, sales, use, property, or other similar tax 
     or fee imposed or levied by a State, political subdivision, 
     or local taxing authority. The district courts of the United 
     States shall have original jurisdiction over a civil action 
     brought by the Trust to enforce this subsection and may grant 
     equitable or declaratory relief requested by the Trust.''.
       (d) Funding.--Section 15(j)(8) of the Railroad Retirement 
     Act of 1974 (45 U.S.C. 231n(j)(8)) is repealed.
       (e) Transfers.--
       (1) Section 15(k) of the Railroad Retirement Act of 1974 
     (45 U.S.C. 231n(k)) is amended by adding at the end the 
     following: ``At the direction of the Railroad Retirement 
     Board, the National Railroad Retirement Investment Trust 
     shall transfer funds to the Railroad Retirement Account.''.
       (2) Section 15A(d)(2) of the Railroad Retirement Act of 
     1974 (45 U.S.C. 231n-1(d)(2)) is amended--
       (A) by inserting ``or the Railroad Retirement Account'' 
     after ``National Railroad Retirement Investment Trust'' the 
     second place it appears;
       (B) by inserting ``or the Railroad Retirement Board'' after 
     ``National Railroad Retirement Investment Trust'' the third 
     place it appears;
       (C) by inserting ``(either directly or through a commingled 
     account consisting only of such obligations)'' after ``United 
     States'' the first place it appears; and
       (D) in the third sentence, by inserting before the period 
     at the end the following: ``or to purchase such additional 
     obligations''.
       (3) Paragraph (4)(B)(ii) of section 7(b) of the Railroad 
     Retirement Act of 1974 (45 U.S.C. 231f(b)(4)(B)(ii)) is 
     amended by inserting ``quarterly or at such other times as 
     the Railroad Retirement Board and the Board of Trustees of 
     the National Railroad Retirement Investment Trust may 
     mutually agree'' after ``amounts'' the second place it 
     appears.
       (f) Clerical Amendments.--Section 15(j)(5) of the Railroad 
     Retirement Act of 1974 (45 U.S.C. 231n(j)(5)) is amended--
       (1) in subparagraph (B), by striking ``trustee's'' each 
     place it appears and inserting ``Trustee's'';
       (2) in subparagraph (C), by striking ``trustee'' and 
     ``trustees'' each place it appears and inserting ``Trustee'' 
     and ``Trustees'', respectively; and
       (3) in the matter preceding clause (i) of subparagraph (D), 
     by striking ``trustee'' and inserting ``Trustee''.

              Subtitle D--Amendments Related to Title XVI

     SEC. 430. EXCLUSION FROM INCOME FOR CERTAIN INFREQUENT OR 
                   IRREGULAR INCOME AND CERTAIN INTEREST OR 
                   DIVIDEND INCOME.

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

[[Page S16179]]

     benefits payable for months in calendar quarters that begin 
     more than 90 days after the date of the enactment of this 
     Act.

     SEC. 431. UNIFORM 9-MONTH RESOURCE EXCLUSION PERIODS.

       (a) Underpayments of Benefits.--Section 1613(a)(7) of the 
     Social Security Act (42 U.S.C. 1382b(a)(7)) is amended--
       (1) by striking ``6'' and inserting ``9''; and
       (2) by striking ``(or to the first 9 months following such 
     month with respect to any amount so received during the 
     period beginning October 1, 1987, and ending September 30, 
     1989)''.
       (b) Advanceable Tax Credits.--Section 1613(a)(11) of the 
     Social Security Act (42 U.S.C. 1382b(a)(11)) is amended to 
     read as follows:
       ``(11) for the 9-month period beginning after the month in 
     which received--
       ``(A) notwithstanding section 203 of the Economic Growth 
     and Tax Relief Reconciliation Act of 2001, any refund of 
     Federal income taxes made to such individual (or such spouse) 
     under section 24 of the Internal Revenue Code of 1986 
     (relating to child tax credit) by reason of subsection (d) 
     thereof; and
       ``(B) any refund of Federal income taxes made to such 
     individual (or such spouse) by reason of section 32 of the 
     Internal Revenue Code of 1986 (relating to earned income tax 
     credit), and any payment made to such individual (or such 
     spouse) by an employer under section 3507 of such Code 
     (relating to advance payment of earned income credit);''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of enactment of this Act, and 
     shall apply to amounts described in paragraph (7) of section 
     1613(a) of the Social Security Act and refunds of Federal 
     income taxes described in paragraph (11) of such section, 
     that are received by an eligible individual or eligible 
     spouse on or after such date.

     SEC. 432. MODIFICATION OF DEDICATED ACCOUNT REQUIREMENTS.

       (a) In General.--Section 1631(a)(2)(F) of the Social 
     Security Act (42 U.S.C. 1383(a)(2)(F)) is amended--
       (1) in clause (ii)(II)--
       (A) in item (ff), by striking ``or'' at the end;
       (B) by redesignating item (gg) as item (hh);
       (C) by inserting after item (ff) the following:
       ``(gg) reimbursement of expenditures incurred by the 
     representative payee that are for the good of such 
     individual; or''; and
       (D) in the matter following item (hh) (as redesignated by 
     subparagraph (B)), by striking ``(gg), is related to the 
     impairment (or combination of impairments)'' and inserting 
     ``(hh), is expended for the good''; and
       (2) in clause (iv), by inserting ``, including with respect 
     to allowable expenses paid from the account in accordance 
     with clause (ii)(II)'' before the period.
       (b) Effective Date.--The amendments made by this section 
     take effect on January 1, 2004, and apply with respect to 
     allowable expenses incurred or accounts established on or 
     after that date.

     SEC. 433. ELIMINATION OF CERTAIN RESTRICTIONS ON THE 
                   APPLICATION OF THE STUDENT EARNED INCOME 
                   EXCLUSION.

       (a) In General.--Section 1612(b)(1) of the Social Security 
     Act (42 U.S.C. 1382a(b)(1)) is amended by striking ``a child 
     who'' and inserting ``under the age of 22 and''.
       (b) Effective Date.--The amendment made by this section 
     shall be effective with respect to benefits payable for 
     months that begin on or after 1 year after the date of 
     enactment of this Act.

     SEC. 434. EXCLUSION OF AMERICORPS AND OTHER VOLUNTEER 
                   BENEFITS FOR PURPOSES OF DETERMINING 
                   SUPPLEMENTAL SECURITY INCOME ELIGIBILITY AND 
                   BENEFIT AMOUNTS AND SOCIAL SECURITY DISABILITY 
                   INSURANCE ENTITLEMENT.

       (a) In General.--
       (1) SSI.--
       (A) Income.--Section 1612(b) of the Social Security Act (42 
     U.S.C. 1382a(b)) (as amended by section 430(a)(2)) is 
     amended--
       (i) in paragraph (22), by striking ``and'' at the end;
       (ii) in paragraph (23), by striking the period and 
     inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(24) any cash or in-kind benefit conferred upon (or paid 
     on behalf of) an individual serving as a volunteer or 
     participant in a program administered by the Corporation for 
     National and Community Service for service in such 
     program.''.
       (B) Substantial gainful activity.--Section 1614(a)(3) of 
     the Social Security Act (42 U.S.C. 1382c(a)(3)) is amended by 
     adding at the end the following:
       ``(K) In determining under subparagraph (A) when services 
     performed or earnings derived from services demonstrate an 
     individual's ability to engage in substantial gainful 
     activity, the Commissioner of Social Security shall disregard 
     services performed as a volunteer or participant in any 
     program administered by the Corporation for National and 
     Community Service, and any earnings derived from such 
     service.''.
       (2) SSDI.--Section 223(d)(4) of such Act (42 U.S.C. 
     423(d)(4)) is amended by adding at the end the following:
       ``(C) In determining under subparagraph (A) when services 
     performed or earnings derived from services demonstrate an 
     individual's ability to engage in substantial gainful 
     activity, the Commissioner of Social Security shall disregard 
     services performed as a volunteer or participant in any 
     program administered by the Corporation for National and 
     Community Service, and any earnings derived from such 
     service.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to benefits payable for months beginning on or 
     after 60 days after the date of enactment of this Act.

     SEC. 435. EXCEPTION TO RETROSPECTIVE MONTHLY ACCOUNTING FOR 
                   NONRECURRING INCOME.

       (a) In General.--Section 1611(c) of the Social Security Act 
     (42 U.S.C. 1382(c)) is amended by adding at the end the 
     following:
       ``(9)(A) Notwithstanding paragraphs (1) and (2), any 
     nonrecurring income which is paid to an individual in the 
     first month of any period of eligibility shall be taken into 
     account in determining the amount of the benefit under this 
     title of such individual (and his eligible spouse, if any) 
     only for that month, and shall not be taken into account in 
     determining the amount of the benefit for any other month.
       ``(B) For purposes of subparagraph (A), payments to an 
     individual in varying amounts from the same or similar source 
     for the same or similar purpose shall not be considered to be 
     nonrecurring income.''.
       (b) Deletion of Obsolete Material.--Section 1611(c)(2)(B) 
     of the Social Security Act (42 U.S.C. 1382(c)(2)(B)) is 
     amended to read as follows:
       ``(B) in the case of the first month following a period of 
     ineligibility in which eligibility is restored after the 
     first day of such month, bear the same ratio to the amount of 
     the benefit which would have been payable to such individual 
     if eligibility had been restored on the first day of such 
     month as the number of days in such month including and 
     following the date of restoration of eligibility bears to the 
     total number of days in such month.''.
       (c) Effective Date.--The amendments made by this section 
     shall be effective with respect to benefits payable for 
     months that begin on or after 1 year after the date of 
     enactment of this Act.

     SEC. 436. REMOVAL OF RESTRICTION ON PAYMENT OF BENEFITS TO 
                   CHILDREN WHO ARE BORN OR WHO BECOME BLIND OR 
                   DISABLED AFTER THEIR MILITARY PARENTS ARE 
                   STATIONED OVERSEAS.

       (a) In General.--Section 1614(a)(1)(B)(ii) of the Social 
     Security Act (42 U.S.C. 1382c(a)(1)(B)(ii)) is amended--
       (1) by inserting ``and'' after ``citizen of the United 
     States,''; and
       (2) by striking ``, and who,'' and all that follows and 
     inserting a period.
       (b) Effective Date.--The amendments made by this section 
     shall be effective with respect to benefits payable 
     for months beginning after the date of enactment of this 
     Act, but only on the basis of an application filed after 
     such date.

     SEC. 437. TREATMENT OF EDUCATION-RELATED INCOME AND 
                   RESOURCES.

       (a) Exclusion From Income of Gifts Provided for Tuition and 
     Other Education-Related Fees.--Section 1612(b)(7) of the 
     Social Security Act (42 U.S.C. 1382a(b)(7)) is amended by 
     striking ``or fellowship received for use in paying'' and 
     inserting ``fellowship, or gift (or portion of a gift) used 
     to pay''.
       (b) Exclusion From Resources for 9 Months of Grants, 
     Scholarships, Fellowships, or Gifts Provided for Tuition and 
     Other Education-Related Fees.--Section 1613(a) of the Social 
     Security Act (42 U.S.C. 1382b(a)) (as amended by section 
     101(c)(2)) is amended--
       (1) in paragraph (13), by striking ``and'' at the end;
       (2) in paragraph (14), by striking the period and inserting 
     ``; and''; and
       (3) by inserting after paragraph (14) the following:
       ``(15) for the 9-month period beginning after the month in 
     which received, any grant, scholarship, fellowship, or gift 
     (or portion of a gift) used to pay the cost of tuition and 
     fees at any educational (including technical or vocational 
     education) institution.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to benefits payable for months that begin more 
     than 90 days after the date of enactment of this Act.

     SEC. 438. MONTHLY TREATMENT OF UNIFORMED SERVICE 
                   COMPENSATION.

       (a) Treatment of Pay as Received When Earned.--Section 
     1611(c) of the Social Security Act (42 U.S.C. 1382(c)), as 
     amended by section 435(a), is amended by adding at the end 
     the following:
       ``(10) For purposes of this subsection, remuneration for 
     service performed as a member of a uniformed service may be 
     treated as received in the month in which it was earned, if 
     the Commissioner of Social Security determines that such 
     treatment would promote the economical and efficient 
     administration of the program authorized by this title.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to benefits payable for months that begin more 
     than 90 days after the date of enactment of this Act.

     SEC. 439. UPDATE OF RESOURCE LIMITS.

       (a) Increase.--Section 1611(a)(3) of the Social Security 
     Act (42 U.S.C. 1382(a)(3)) is amended--
       (1) in subparagraph (A), by adding at the end the 
     following: ``On January 1, 2004, such dollar amount shall be 
     increased to an amount equal to 150 percent of the dollar 
     amount applicable to an individual described in paragraph 
     (1)(B)(ii).''; and
       (2) in subparagraph (B)--
       (A) by striking ``and'' the last place it appears; and
       (B) by inserting ``, and to $3,000 on January 1, 2004'' 
     before the period.
       (b) Cost-of-Living Adjustment.--Section 1617(a)(1) of the 
     Social Security Act (42 U.S.C. 1382f(a)(1)) is amended by 
     inserting ``(a)(3)(B),'' before ``(b)(1)''.
       (c) Effective Dates.--

[[Page S16180]]

       (1) Increase.--The amendments made by subsection (a) shall 
     take effect on January 1, 2004.
       (2) Cost-of-living adjustment.--The amendment made by 
     subsection (b) shall take effect on January 1, 2005.

     SEC. 440. REVIEW OF STATE AGENCY BLINDNESS AND DISABILITY 
                   DETERMINATIONS.

       Section 1633 of the Social Security Act (42 U.S.C. 1383b) 
     is amended by adding at the end the following:
       ``(e)(1) The Commissioner of Social Security shall review 
     determinations, made by State agencies pursuant to subsection 
     (a) in connection with applications for benefits under this 
     title on the basis of blindness or disability, that 
     individuals who have attained 18 years of age are blind or 
     disabled. Any review by the Commissioner of Social Security 
     of a State agency determination under this paragraph shall be 
     made before any action is taken to implement the 
     determination.
       ``(2)(A) In carrying out paragraph (1), the Commissioner of 
     Social Security shall review--
       ``(i) with respect to fiscal year 2004, at least 25 percent 
     of all determinations referred to in paragraph (1) that are 
     made in such year after the later of--
       ``(I) March 31; and
       ``(II) the date of enactment of this subsection; and
       ``(ii) with respect to fiscal years after fiscal year 2004, 
     at least 50 percent of all such determinations that are made 
     in each such fiscal year.
       ``(B) In conducting reviews pursuant to subparagraph (A), 
     the Commissioner of Social Security shall, to the extent 
     feasible, select for review those determinations which the 
     Commissioner of Social Security identifies as being the most 
     likely to be incorrect.''.

  Mr. GRASSLEY. Mr. President, I urge my colleagues to support H.R. 
743, the Social Security Protection Act of 2003.
  The Social Security Protection Act of 2003 provides the Social 
Security Administration with important new tools to fight waste, fraud, 
and abuse. This bill would eliminate benefits to fugitive felons. It 
would prohibit benefits to illegal workers. It would eliminate the 
``last day'' loophole in the Government Pension Offset. It would 
provide additional oversight of representative payees. Finally, the 
bill would improve benefits for person with disabilities.
  This bill passed the House of Representatives in April. The Senate 
Committee on Finance approved the bill in September with a number of 
important changes.
  In order to expedite passage of this legislation, Senator Baucus and 
I have worked closely with the chairman and the ranking member of the 
Social Security Subcommittee of the House Ways and Means Committee over 
the past several weeks. The result of this work is reflected in the 
managers' amendment that has now been incorporated into this bill.
  I have drafted an explanation of the amendment that has been agreed 
to by the chairman and the ranking member of the House Social Security 
Subcommittee, as well as by the chairman and ranking member of the 
Senate Finance Committee. I ask unanimous consent that the explanation 
be printed in the Record.
  I strongly urge my colleagues to support this commonsense, bipartisan 
legislation.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

   Explanation of the Manager's Amendment to H.R. 743, the ``Social 
 Security Protection Act of 2003'' as Reported by the Senate Committee 
                       on Finance, Report 108-176

     Section 107. Survey of use of payments by representative 
         payees
       The Manager's amendment would limit the scope and cost of 
     the survey and change the organization designated to have the 
     responsibility for conducting the survey.
       As a result of the Manager's amendment, the Commissioner of 
     Social Security, in consultation with the Inspector General 
     of the Social Security Administration (SSA), the General 
     Accounting Office, the Committee on Ways and Means of the 
     House of Representatives, and the Committee on Finance of the 
     Senate, shall conduct a one-time audit of a representative 
     sample of representative payees who are not subject to 
     triennial onsite review or other random review under SSA 
     policy or law, as amended by this bill. That is, the sample 
     shall include individual representative payees serving one or 
     several beneficiaries; individual ``high-volume'' payees 
     serving more than several but fewer than 15 beneficiaries; 
     individual ``high-volume'' payees serving more than several 
     but fewer than 15 beneficiaries; and non-fee-for-service 
     organizational payees who are serving fewer than 50 
     beneficiaries. The cost of this audit will not be greater 
     than $8.5 million. The results of the audit should be 
     presented in a report to the Committee on Ways and Means of 
     the House of Representatives and the Committee on Finance of 
     the Senate.
       The audit shall assess the extent to which representative 
     payees are not performing their duties as payees in 
     accordance with SSA standards for payee conduct. Such SSA 
     standards include, but are not limited to, whether the funds 
     are being used for the benefit of the beneficiary. To the 
     extent possible, the report shall identify which types of 
     payees have the highest risk of misuse of benefits, and 
     suggest ways to reduce those risks and better protect 
     beneficiaries.
       In conducting the audit, the Commissioner shall take 
     special care to avoid excessive intrusiveness into family 
     affairs, including making appropriate adjustments to its 
     audit methodology. if some or all of the audit is contracted 
     out, such contractor shall be chosen with due regard for its 
     experience in conducting reviews of individuals and families, 
     as well as businesses and other organizations.
       In the course of conducting the audit and preparing the 
     report, the Commissioner, or a designated contractor, may 
     make observations about the adequacy of payees' actions and 
     recommendations for change or further review. However, 
     determinations as to whether funds have been misused and/or 
     whether a payee should be changed must be made only by the 
     Commissioner. Further, those conducting the survey should not 
     provide advice, guidance or other feedback to payees that are 
     reviewed under this audit regarding their performance as 
     payees.
       This provision authorizes and appropriates up to $8.5 
     million under subsection 1110(a) of the Social Security Act 
     to carry out this audit. However, these funds are 
     appropriated in addition to any funds appropriated for this 
     subsection under any other law. There is no intention of 
     reducing the funds that would otherwise be available under 
     this subsection to carry out any other projects.
       It is expected that the Commissioner will carry out a 
     survey that is statistically valid at reasonable levels of 
     confidence and precision. However, if the Commissioner 
     determines that such a survey can be prepared for less than 
     the amount appropriated, then the full $8.5 million should 
     not be used. The Commissioner has the authority to limit the 
     amount expended under this provision to that lesser amount. 
     The Committees expect the Commissioner to carefully assess 
     the design of the audit to ensure that it is being performed 
     as economically as possible, while still meeting the 
     objective of obtaining information that is of sufficient 
     statistical validity to assist in increasing the knowledge 
     and understanding of the representative payee program and 
     facilitating its possible improvement.

                             Effective Date

       The report will be due to the Committee on Ways and Means 
     of the House of Representatives and the Committee on Finance 
     of the Senate 18 months after the date of enactment of this 
     Act.
     Section 203. Denial of Title II benefits to persons fleeing 
         prosecution, custody, or confinement, and to persons 
         violating probation or parole
       The Manager's amendment would substitute the following 
     ``good cause'' exception for the original provision included 
     in the Committee-reported bill.
       Press accounts, hearing testimony and other information 
     provided to the Committees have identified cases in which 
     benefit continuation may be justified due to extenuating 
     circumstances. In light of this, the provision gives the 
     Commissioner authority to pay Title II or Title XVI benefits 
     that were withheld, or would otherwise be withheld, if there 
     is good cause in the following circumstances:
       First, the Commissioner shall apply the good cause 
     exception if a court of competent jurisdiction finds the 
     person is not guilty, charges are dismissed, a warrant for 
     arrest is vacated, or there are similar exonerating 
     circumstances found by the court.
       Second, the Commissioner shall apply the good cause 
     exception if the individual establishes to the satisfaction 
     of the Commissioner that he or she was the victim of identity 
     fraud and the warrant was erroneously issued on such basis.
       Third, the Commissioner may apply the good cause exception 
     if the criminal offense was non-violent and not drug-related, 
     and in the case of probation or parole violators, both the 
     violation and the underlying offense were non-violent and not 
     drug-related. However, in such cases, the Commissioner may 
     only establish good cause based on mitigating factors such 
     as the nature and severity of the crime, the length of 
     time that has passed since the warrant was issued, whether 
     other crimes have been committed in the interim, and the 
     beneficiary's mental capacity to resolve the issue.
       This document (which is to accompany the Manager's 
     amendment) also seeks to clarify two issues with respect to 
     current law. First, section 1611(e)(5)(A)(ii) of the Social 
     Security Act (42 USC 1382(e)(5)(A)(ii)) requires a law 
     enforcement officer to notify the Commissioner that an SSI 
     recipient has information necessary for the officer to 
     conduct his official duties.
       The Manager's amendment deletes this information 
     requirement in (A)(ii) to clarify that a law enforcement 
     officer only needs to notify the Commissioner of the 
     recipient's fugitive status (or parole / probation status), 
     and the officer's duty to locate or apprehend the recipient. 
     This change is not intended to have any effect on the 
     existing interpretation or application of section 1611 and is 
     consistent with current practices and procedures.
       Second, several recent decisions by Administrative Law 
     Judges have noted that neither

[[Page S16181]]

     the current statute nor the current regulations define the 
     phrase ``fleeing to avoid prosecution.'' This report provides 
     the following clarification. If it is reasonable to conclude 
     that the individual knew or should have known that criminal 
     charges were pending, or has been made aware of such charges 
     by the SSA, then the individual should be considered 
     ``fleeing,'' whether or not law enforcement seeks arrest or 
     extradition.
     Section 206. Penalty for corrupt or forcible interference 
         with administration of the Social Security Act
       The Manager's amendment makes a technical correction to 
     address a drafting error.
     Section 209. Authority for judicial orders of restitution
       The Manager's amendment makes technical corrections and 
     eliminates the special restitution account created within the 
     Treasury Department. Funds collected through restitution 
     would instead be credited to the Social Security trust funds 
     or the general fund of the U.S. Treasury, as appropriate.
     Section 210. Information for administration of provisions 
         related to non-covered employment
       The Manager's amendment would strike this section.
     Section 212. Prohibition of payment of Title II benefits to 
         persons not authorized to work in the United States
       The Manager's amendment would make a technical correction 
     related to certain non-citizens and change the effective 
     date.
       B-1 visa holders are generally aliens visiting the United 
     States temporarily for business on behalf of a foreign 
     employer. According to State Department regulations, the B-1 
     visa holder conducts business as a continuation of his 
     foreign employment. D visa holders are generally alien flight 
     attendants who enter into an employment contract in the 
     United States with a U.S. airline and who only fly into and 
     out of the United States.
       Although these categories of visa holders are not 
     technically authorized to work in the United States, such 
     persons are legally present in the United States while they 
     are working. Thus, they should not be subject to the benefit 
     prohibition.
       The Manager's amendment would also change the effective 
     date to limit the application of this provision to persons 
     with Social Security numbers issued after January 1, 2004. 
     This change would provide the Social Security Administration 
     the opportunity to develop the recordkeeping system necessary 
     to enforce the provision.
     Section 302. Temporary extension of attorney fee payment 
         system to Title XVI claims
       The Manager's amendment re-designates Section 302 as 
     Section 304 and adopts the House-passed provision to extend 
     the current Title II attorney fee withholding process to 
     Title XVI for a period of five years.
       The amendment would also cap the 6.3 percent assessment on 
     approved attorney representation fees at $75 (indexed for 
     inflation), as provided for Title II claims under Section 301 
     of the bill.
       With respect to the cap of $75 for Title II and Title XVI 
     claims, it should be noted that the cap applies on a per case 
     basis. (Concurrent cases shall be treated as a single case 
     for this purpose.) In a case multiple representatives, the 
     SAA should apply the assessment proportionately to each 
     representative issued a check and in no case should the 
     cumulative assessment exceed $75.
       Finally, the amendment would amend the existing dedicated 
     account and installment payment provisions in Title XVI. 
     Under current law, dedicated accounts are required when an 
     individual receives past-due benefits equal to 6 times the 
     Federal Benefit Rate (FBR); installment payments are required 
     when past due benefits are to be 12 times the FBR. The 
     amendment clarifies that these triggering amounts would be 
     based on the amount of past-due benefits that remain after 
     attorney fees that the Social Security Administration paid 
     directly to the attorney out of past-due benefits are 
     deducted.

                             Effective Date

       Applies with respect to fees for representation that are 
     first required to be certified or paid on or after the date 
     the Commissioner submits to Congress a notice that she 
     has completed the actions necessary to fully implement the 
     demonstration project under Section 303.
     Section 303. Nationwide demonstration project providing for 
         extension of fee withholding procedures to non-attorney 
         representatives
       The Manager's amendments adds the following new section.

                              Present Law

       An individual applying for Title II or Title XVI benefits 
     may seek the assistance of another person. The person 
     assisting the applicant may not charge or receive a fee 
     unless the Social Security Administration (SSA) approves it. 
     If the person assisting the individual is an attorney and the 
     individual is awarded past-due benefits under Title II, the 
     SSA may deduct the attorney's fee from the individual's 
     benefits and pay the attorney directly--minus a fee to cover 
     the SSA's administrative costs.

                        Explanation of Provision

       This provision would authorize a nationwide demonstration 
     project to allow non-attorneys the option of fee withholding 
     under both Title II and Title XVI for a period of five years. 
     The SSA would charge a 6.3 percent assessment on approved 
     fees, subject to a $75 cap (indexed for inflation), as 
     applies to attorneys under section 206 and section 1631(d)(2) 
     of the Act.
       Non-attorney representatives seeking direct payment of fees 
     under the demonstration project would need to meet at least 
     the following prerequisites: hold a bachelor's degree or 
     equivalent experience, pass an examination written and 
     administered by the Commissioner, secure professional 
     liability insurance or the equivalent, undergo a criminal 
     background check, and complete continuing education courses. 
     The provision would require the Commissioner to implement and 
     carry out the demonstration project no later than one year 
     after the date of enactment. The demonstration project would 
     terminate 5 years after being fully implemented.
       The Commissioner may charge a reasonable fee to individuals 
     seeking approval for direct payments. Such fees should be 
     comparable to the fees charged to other professionals subject 
     to similar regulation.
       The Commissioner should consult with relevant experts in 
     the area of disability policy and professional ethics 
     (including, but not limited to, experienced non-attorney and 
     attorney disability claimant representatives, disability 
     advocates, and organizations that develop and administer 
     examinations for the regulation of professionals) in 
     developing the exam and in determining whether other 
     prerequisites should be required.
       The Commissioner would be required to submit interim 
     reports on the progress of the demonstration and a final 
     report after the conclusion of the demonstration.

                           Reason for Change

       The demonstration project authorized by this section would 
     allow the SSA to pay all qualified representatives directly 
     out of past-due benefits for Title II and Title XVI claims 
     and would enable Congress (in conjunction with the GAO study 
     required under Section 304) to assess whether such an 
     extension of fee withholding would increase access to 
     qualified professional representation.

                             Effective Date

       Applies with respect to fees for representation that are 
     first required to be certified or paid after the date the 
     Commissioner submits to Congress a notice that she has 
     completed the actions necessary to fully implement this 
     demonstration project. The interim reports would be due 
     annually, and the final report would be due 90 days after the 
     termination of the demonstration.
     Section 304. GAO study of fee payment process for claimant 
         representatives
       The Manager's amendment re-designates Section 302 as 
     Section 304 and modifies the GAO study.
       The Committee-reported bill called for a study based upon 
     the potential results of extending fee withholding to Title 
     XVI and to non-attorneys. As modified by the Manager's 
     amendment, the study will now be based on the actual results 
     of such an extension as provided in Section 302 and Section 
     303 of the bill.
       The GAO report would provide a comprehensive overview of 
     the appointment and payment of claimant representatives. It 
     would include a survey of all categories of representatives--
     both attorneys and non-attorneys, as well as those who do and 
     do not elect fee withholding. It would compare claimant 
     outcomes by type of representatives. It would also compare 
     the costs and benefits of fee withholding from the 
     perspective of the Social Security Administration, claimants, 
     and representatives.
       GAO would evaluate the interactions between fee 
     withholding, the windfall offset, and interim assistance 
     reimbursement. This evaluation would consider the effects of 
     such interactions on claimant outcomes, access to 
     representatives, and reimbursements to the Federal and State 
     governments.
       Finally, GAO would make recommendations for any legislative 
     or administrative changes deemed appropriate. The report 
     would be due no later than 3 years after the implementation 
     date of Section 303.
     Section 401. Application of demonstration authority sunset 
         date to new projects
       The Manager's amendment would extend the demonstration 
     authority through December 18, 2005, rather than making it 
     permanent, and allow projects initiated by December 17, 2005 
     to be completed thereafter.
     Section 407. Reauthorization of appropriations for certain 
         work incentives programs
       The Manager's amendment adds the following new section.

                              Present Law

       The Ticket to Work Act directs SSA to establish a 
     community-based program to provide benefit planning and 
     assistance to disabled beneficiaries. To establish this 
     program, SSA is required to award cooperative agreements (or 
     grants or contracts) to State or private entities. Services 
     include disseminating accurate information on work incentive 
     programs (the Ticket to Work, section 1619 programs, etc.) 
     and related issues to all disabled beneficiaries. In 
     fulfillment of this requirement, SSA has established the 
     Benefits Planning, Assistance, and Outreach (BPAO) program. 
     The Act also authorizes SSA to award grants to State 
     protection and advocacy (P&A) systems so that they can 
     provide protection and advocacy services to disabled 
     beneficiaries. Services include information and advice about 
     obtaining vocational rehabilitation and employment services 
     and advocacy or other services that a

[[Page S16182]]

     disabled beneficiary may need to secure, maintain, or regain 
     employment. SSA has established the Protection and Advocacy 
     to Beneficiaries of Social Security (PABSS) Program pursuant 
     to this authorization.
       The Ticket to Work Act authorizes certain funding amounts 
     to be appropriated for these BPAO and PABSS programs for the 
     fiscal years 2000 through 2004.

                        Explanation of Provision

       This provision extends the authorization to appropriate 
     funding for these programs for another five fiscal years.

                           Reason for Change

       SSA cannot continue to fund the BPAO and PABSS programs 
     beyond fiscal year 2004 without an extension of 
     authorization. These programs provide essential vocational 
     rehabilitation and employment services for disabled 
     beneficiaries to secure, maintain, and regain employment and 
     reduce their dependency on cash benefit programs.

                             Effective Date

       Upon enactment.
     Section 416. Coverage under divided retirement system for 
         public employees in Kentucky and Louisiana
       The Manager's amendment would incorporate the House-passed 
     provision in place of the Committee's provision, and add the 
     State of Louisiana, as requested by its State Treasurer.
     Section 418. 60-month period of employment requirement for 
         application of government pension offset exemption
       The Manager's amendment would adopt the House-passed 
     provision with a revised effective date and transition rule. 
     This provision is effective with respect to individuals whose 
     last day of State or local government service occurs on or 
     after July 1, 2004. The Manager's amendment would adopt the 
     House-passed provision with a revised effective date and 
     transition rule. This provision is effective with respect to 
     individuals whose last day of State or local government 
     service occurs on or after July 1, 2004. The transition rule 
     allows State or local employees, who retire from government 
     employment within five years of enactment, to count previous 
     work within the same retirement system towards the 60-month 
     requirement. Such previous work must meet both of the 
     following criteria: (a) the work was covered under both 
     Social Security and the government pension system, and (b) 
     the work was performed prior to the date of enactment.
       The Manager's amendment also consolidated existing 
     provisions of the Social Security Act in order to co-locate 
     the government pension offset provision with the provision on 
     which it is modeled, the dual entitlement rule for covered 
     workers.
     Section 419. Disclosure to workers of effect of windfall 
         elimination provision and government pension offset 
         provision
       The Manager's amendment re-designates Section 419 as 
     Section 420 and adds the following new section.

                              Present Law

       There are approximately 7.5 million workers who do not pay 
     taxes into the Social Security system. The majority of these 
     workers are State and local government employees. Many of 
     these government workers may eventually qualify for Social 
     Security as the result of other employment, or as the spouse 
     or survivor of a worker covered by Social Security. The 
     Government Pension Offset (GPO) and the Windfall Elimination 
     Provision (WEP) were enacted--in 1977 and 1983, 
     respectively--to provide more equitable treatment of covered 
     and non-covered workers.

                        Explanation of Provision

       This provision requires the Social Security Administration 
     to send a modified Social Security Statement to non-covered 
     employees that describes the potential maximum benefit 
     reductions that may result from the receipt of a Federal, 
     State, or local government pension based on employment that 
     is not subject to Social Security payroll taxes.
       It also requires government employers to notify newly hired 
     non-covered employees of the potential maximum effect of non-
     covered work on their Social Security benefits. The employer 
     shall obtain signed documentation of such notification from 
     the employee and transmit a copy to the pension paying 
     entity.

                           Reason for Change

       Organizations representing State and local employees report 
     their members are often unaware of the GPO and WEP provisions 
     until they apply for retirement benefits. The Committee 
     believes the Social Security Administration should utilize 
     the annual earnings statement mailed to every employee age 25 
     and over to more explicitly inform State and local employees 
     about the GPO and WEP. It is important that these employees 
     also be informed about their options to become exempt from 
     these provisions by electing coverage under the Social 
     Security program.

                             Efective Date

       Government employers must provide notification of the 
     potential effect of non-covered work beginning with employees 
     hired on or after January 1, 2005. The Social Security 
     Administration must provide the modified Social Security 
     Statements beginning January 1, 2007.
     Section 420A. Elimination of disincentives to return to work 
         for childhood disability beneficiaries
       The Manager's amendment adds the following new section.

                              Current Law

       A Childhood Disability Beneficiary (CDB)--sometimes also 
     referred to as a Disabled Adult Child (DAC)--whose benefits 
     terminate because disability ceased can become re-entitled on 
     the parent's record only if he or she is disabled within the 
     7-year period following the month benefits terminate and is 
     not entitled to higher benefits on his or her own record.

                        Explanation of Provision

       The provisions would allow re-entitlement to childhood 
     disability benefits after the 7-year period if the 
     beneficiary's previous entitlement had terminated because 
     disability ceased due to the performance of Substantial 
     Gainful Activity (SGA) and the beneficiary is not entitled to 
     higher benefits on his or her own record. This provision 
     would not apply to beneficiaries whose previous entitlement 
     terminated based on medical improvement.

                           Reason for Change

       Prohibiting re-entitlement to childhood disability benefits 
     after the expiration of the 7-year period is a significant 
     disincentive to return-to-work for a CDB. Many CDBs find that 
     the benefits for which they qualify on their own work record 
     are less--often significantly less--than the benefits they 
     received as a CDB based on a parent's work history. The 
     permanent loss of benefits on the parent's record remains a 
     major disincentive for a CDB to attempt to return to work, 
     one not addressed by the Ticket to Work and Work Incentives 
     Improvement Act of 1999. Although this provision is expected 
     to affect very few individuals, the change will make a 
     significant difference for those individuals in their efforts 
     to work to the fullest extent possible.

                             Effective Date

       The provision is effective on the first day of the seventh 
     month that begins after the date of enactment of this Act.
     Section 426. Technical amendments to the Railroad Retirement 
         and Survivors' Improvement Act of 2001
       The Manager's amendment strikes subsections (e)(1) and 
     (e)(3).
     Section 432. Modification of the dedicated account 
         requirements
       The Manager's amendment strikes this section.
     Section 434. Exclusion of Americorps and other volunteer 
         benefits for purposes of determining supplemental 
         security income eligibility and benefit amounts and 
         social Security disability insurance entitlement
       The Manager's amendment strikes this section.
     Section 439. Update of resource limit
       The Manager's amendment strikes this section.
     Section 440. Review of state agency blindness and disability 
         determinations
       The Manager's amendment strikes this section.
  Mr. BAUCUS. Mr. President, I rise today to urge my colleagues to 
support H.R. 743, the Social Security Protection Act of 2003 as 
modified. H.R. 743 is bipartisan legislation developed by Ways and 
Means Social Security Subcommittee Chairman Shaw and Ranking Member 
Matsui. H.R. 743 passed the House by a vote of 396 to 28, and was 
reported by the Committee on Finance with unanimous support. In keeping 
with the bipartisan tradition of the Senate Finance Committee and with 
the bipartisan origins of this legislation, Senator Grassley and I have 
worked together to further refine this legislation for Senate 
consideration.
  H.R. 743 makes a number of important changes to the Social Security 
and Supplemental Security Income, SSI, programs. These changes will 
accomplish a number of important goals: they will enhance the financial 
security of some of the most vulnerable beneficiaries of these 
programs, increase protections to seniors from deceptive practices by 
individuals in the private sector, reduce disincentives to employment 
for disabled individuals, improve program integrity and thereby save 
money for the Social Security and Medicare trust funds and for 
taxpayers, and make the Social Security program more equitable.
  One of the most important results of this legislation will be to 
enhance the financial security of the almost 7 million Social Security 
and SSI beneficiaries who are not capable of managing their own 
financial affairs due to advanced age or disability. The Social 
Security Administration, SSA, currently appoints individuals or 
organizations to act as ``representative payees'' for such 
beneficiaries. Most of these representative payees perform their roles 
conscientiously. However, some do not--indeed there have even been 
instances of terrible abuse in this program.

[[Page S16183]]

  It is imperative that Congress take action to guard vulnerable 
seniors and disabled individuals from such abuse. This legislation 
increases requirements for SSA to provide restitution to beneficiaries 
when representative payees defraud the beneficiaries of their benefits. 
The legislation also tightens the qualifications for representative 
payees, increases oversight of the program, and imposes stricter 
penalties on those who violate their responsibilities. Finally, the 
legislation provides--for the first time ever--that there will be a 
one-time audit of a representative sample of representative payees to 
assess the extent to which representative payees are not using the 
beneficiary's funds for the benefit of the beneficiary.
  The legislation expands the protection to seniors and disabled 
individuals by increasing the list of references to Social Security, 
Medicare and Medicaid which cannot be used by private-sector 
individuals, companies and organizations to give a false impression of 
Federal endorsement. The legislation also protects seniors from those 
who deceptively attempt to charge them for services that the seniors 
could receive for free from SSA.
  The legislation eliminates a disincentive to return to work for 
childhood disability beneficiaries. The provision would make it easier 
to regain childhood disability benefits for disabled adult children who 
had returned to work at one time. Additionally, H.R. 743 also includes 
technical amendments to improve the effectiveness of the Ticket to Work 
and Work Incentives Improvement Act, legislation passed in 1999 to help 
beneficiaries with disabilities become employed and move toward self-
sufficiency.
  H.R. 743 improves program integrity by expanding the current 
prohibition against paying benefits to fugitive felons. As part of the 
1996 welfare reform law, Congress banned the payment of SSI benefits to 
these individuals. However, under current law, fugitive felons can 
still receive Social Security benefits under title II. This legislation 
prohibits the payment of title II Social Security benefits to fugitive 
felons.
  The bill also makes the Social Security program more equitable by 
including a provision to make an exemption to the Government Pension 
Offset more uniform. The Government Pension Offset, GPO, was enacted in 
order to equalize the treatment of workers in jobs not covered by 
Social Security and workers in jobs covered by Social Security, with 
respect to spousal and survivors benefits. The GPO reduces the Social 
Security spousal or survivors benefit by an amount equal to two-thirds 
of the Government pension. However, as a GAO report highlighted, State 
and local government workers are exempt from the GPO if their job on 
their last day of employment was covered by Social Security. In 
contrast, Federal workers who switched from the Civil Service 
Retirement System, CSRS, a system that is not covered by Social 
Security, to the Federal Employee Retirement System, FERS, a system 
that is covered by Social Security, must work for 5 years under FERS in 
order to be exempt from the GPO. H.R. 743 makes the exemption to the 
Government Pension Offset similar for State and local government 
workers as for Federal Government workers.
  I believe that each of the provisions of H.R. 743 deserve the support 
of the Senate. Moreover, in an attempt to expedite Congressional 
passage of this legislation, the changes that Senator Grassley and I 
want to make to the bill as reported by the Finance Committee have 
already been worked out with both the chairman and the ranking member 
of the Social Security Subcommittee of the House Ways and Means 
Committee. Moreover, we have ``report language'' that has been agreed 
to by the chairman and the ranking member of the Social Security 
Subcommittee--as well as by the chairman and ranking member of the 
Senate Finance Committee which will be included in the Congressional 
Record directly following the legislative language. This statement 
provides details about each of the provisions of the legislation, as 
well as the rationale behind each provision.
  This legislation contains the types of improvements we can all agree 
on, as demonstrated by the overwhelming bipartisan vote in the House, 
and the bipartisan, bicameral agreement of the chairmen and ranking 
members of the committees of jurisdiction. I wholeheartedly urge my 
colleagues in the Senate to approve these sensible and important 
changes.
  Mr. FRIST. Mr. President, I ask unanimous consent that the Grassley 
amendment at the desk be agreed to, the committee substitute, as 
amended, be agreed to; the bill, as amended, be read a third time and 
passed, the motion to reconsider be laid upon the table, and any 
statements relating to the bill be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 2227) was agreed to.
  (The amendment is printed in today's Record under ``Text of 
Amendments.'')
  The committee amendment in the nature of a substitute, as amended, 
was agreed to.
  The bill (H.R. 743), as amended, was read the third time and passed, 
as follows:

                                H.R. 743

       Resolved, That the bill from the House of Representatives 
     (H.R. 743) entitled ``An Act to amend the Social Security Act 
     and the Internal Revenue Code of 1986 to provide additional 
     safeguards for Social Security and Supplemental Security 
     Income beneficiaries with representative payees, to enhance 
     program protections, and for other purposes.'', do pass with 
     the following amendment:
       Strike out all after the enacting clause and insert:

     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.
Sec. 107. Survey of use of payments by representative payees.

                        Subtitle B--Enforcement

Sec. 111. Civil monetary penalty authority with respect to wrongful 
              conversions by representative payees.

                     TITLE II--PROGRAM PROTECTIONS

Sec. 201. Civil monetary penalty authority with respect to withholding 
              of material facts.
Sec. 202. Issuance by Commissioner of Social Security of receipts to 
              acknowledge submission of reports of changes in work or 
              earnings status of disabled beneficiaries.
Sec. 203. Denial of title II benefits to persons fleeing prosecution, 
              custody, or confinement, and to persons violating 
              probation or parole.
Sec. 204. Requirements relating to offers to provide for a fee, a 
              product or service available without charge from the 
              Social Security Administration.
Sec. 205. Refusal to recognize certain individuals as claimant 
              representatives.
Sec. 206. Criminal penalty for corrupt or forcible interference with 
              administration of Social Security Act.
Sec. 207. Use of symbols, emblems, or names in reference to social 
              security or medicare.
Sec. 208. Disqualification from payment during trial work period upon 
              conviction of fraudulent concealment of work activity.
Sec. 209. Authority for judicial orders of restitution.
Sec. 210. Authority for cross-program recovery of benefit overpayments.
Sec. 211. Prohibition on payment of title II benefits to persons not 
              authorized to work in the United States.

   TITLE III--ATTORNEY REPRESENTATIVE FEE PAYMENT SYSTEM IMPROVEMENTS

Sec. 301. Cap on attorney assessments.
Sec. 302. Temporary extension of attorney fee payment system to title 
              XVI claims.
Sec. 303. Nationwide demonstration project providing for extension of 
              fee withholding procedures to non-attorney 
              representatives.
Sec. 304. GAO study regarding the fee payment process for claimant 
              representatives.

            TITLE IV--MISCELLANEOUS AND TECHNICAL AMENDMENTS

    Subtitle A--Amendments Relating to the Ticket to Work and Work 
                   Incentives Improvement Act of 1999

Sec. 401. Application of demonstration authority sunset date to new 
              projects.

[[Page S16184]]

Sec. 402. Expansion of waiver authority available in connection with 
              demonstration projects providing for reductions in 
              disability insurance benefits based on earnings.
Sec. 403. Funding of demonstration projects providing for reductions in 
              disability insurance benefits based on earnings.
Sec. 404. Availability of Federal and State work incentive services to 
              additional individuals.
Sec. 405. Technical amendment clarifying treatment for certain purposes 
              of individual work plans under the Ticket to Work and 
              Self-Sufficiency Program.
Sec. 406. GAO study regarding the Ticket to Work and Self-Sufficiency 
              Program.
Sec. 407. Reauthorization of appropriations for certain work incentives 
              programs.

                  Subtitle B--Miscellaneous Amendments

Sec. 411. Elimination of transcript requirement in remand cases fully 
              favorable to the claimant.
Sec. 412. Nonpayment of benefits upon removal from the United States.
Sec. 413. Reinstatement of certain reporting requirements.
Sec. 414. Clarification of definitions regarding certain survivor 
              benefits.
Sec. 415. Clarification respecting the FICA and SECA tax exemptions for 
              an individual whose earnings are subject to the laws of a 
              totalization agreement partner.
Sec. 416. Coverage under divided retirement system for public employees 
              in Kentucky and Louisiana.
Sec. 417. Compensation for the Social Security Advisory Board.
Sec. 418. 60-month period of employment requirement for application of 
              government pension offset exemption.
Sec. 419. Disclosure to workers of effect of windfall elimination 
              provision and government pension offset provision.
Sec. 420. Post-1956 Military Wage Credits.
Sec. 420A. Elimination of disincentive to return-to-work for childhood 
              disability beneficiaries.

                    Subtitle C--Technical Amendments

Sec. 421. Technical correction relating to responsible agency head.
Sec. 422. Technical correction relating to retirement benefits of 
              ministers.
Sec. 423. Technical corrections relating to domestic employment.
Sec. 424. Technical corrections of outdated references.
Sec. 425. Technical correction respecting self-employment income in 
              community property States.
Sec. 426. Technical amendments to the Railroad Retirement and 
              Survivors' Improvement Act of 2001.

              Subtitle D--Amendments Related to Title XVI

Sec. 430. Exclusion from income for certain infrequent or irregular 
              income and certain interest or dividend income.
Sec. 431. Uniform 9-month resource exclusion periods.
Sec. 432. Elimination of certain restrictions on the application of the 
              student earned income exclusion.
Sec. 433. Exception to retrospective monthly accounting for 
              nonrecurring income.
Sec. 434. Removal of restriction on payment of benefits to children who 
              are born or who become blind or disabled after their 
              military parents are stationed overseas.
Sec. 435. Treatment of education-related income and resources.
Sec. 436. Monthly treatment of uniformed service compensation.

                  TITLE I--PROTECTION OF BENEFICIARIES

                   Subtitle A--Representative Payees

     SEC. 101. AUTHORITY TO REISSUE BENEFITS MISUSED BY 
                   ORGANIZATIONAL REPRESENTATIVE PAYEES.

       (a) Title II Amendments.--
       (1) Reissuance of benefits.--Section 205(j)(5) of the 
     Social Security Act (42 U.S.C. 405(j)(5)) is amended by 
     inserting after the first sentence the following: ``In any 
     case in which a representative payee that--
       ``(A) is not an individual (regardless of whether it is a 
     `qualified organization' within the meaning of paragraph 
     (4)(B)); or
       ``(B) is an individual who, for any month during a period 
     when misuse occurs, serves 15 or more individuals who are 
     beneficiaries under this title, title VIII, title XVI, or any 
     combination of such titles;
     misuses all or part of an individual's benefit paid to such 
     representative payee, the Commissioner of Social Security 
     shall certify for payment to the beneficiary or the 
     beneficiary's alternative representative payee an amount 
     equal to the amount of such benefit so misused. The 
     provisions of this paragraph are subject to the limitations 
     of paragraph (7)(B).''.
       (2) Misuse of benefits defined.--Section 205(j) of such Act 
     (42 U.S.C. 405(j)) is amended by adding at the end the 
     following:
       ``(8) For purposes of this subsection, misuse of benefits 
     by a representative payee occurs in any case in which the 
     representative payee receives payment under this title for 
     the use and benefit of another person and converts such 
     payment, or any part thereof, to a use other than for the use 
     and benefit of such other person. The Commissioner of Social 
     Security may prescribe by regulation the meaning of the term 
     `use and benefit' for purposes of this paragraph.''.
       (b) Title VIII Amendments.--
       (1) Reissuance of benefits.--Section 807(i) of the Social 
     Security Act (42 U.S.C. 1007(i)) is amended further by 
     inserting after the first sentence the following: ``In any 
     case in which a representative payee that--
       ``(A) is not an individual; or
       ``(B) is an individual who, for any month during a period 
     when misuse occurs, serves 15 or more individuals who are 
     beneficiaries under this title, title II, title XVI, or any 
     combination of such titles;
     misuses all or part of an individual's benefit paid to such 
     representative payee, the Commissioner of Social Security 
     shall pay to the beneficiary or the beneficiary's alternative 
     representative payee an amount equal to the amount of such 
     benefit so misused. The provisions of this paragraph are 
     subject to the limitations of subsection (l)(2).''.
       (2) Misuse of benefits defined.--Section 807 of such Act 
     (42 U.S.C. 1007) is amended by adding at the end the 
     following:
       ``(j) Misuse of Benefits.--For purposes of this title, 
     misuse of benefits by a representative payee occurs in any 
     case in which the representative payee receives payment under 
     this title for the use and benefit of another person under 
     this title and converts such payment, or any part thereof, to 
     a use other than for the use and benefit of such person. The 
     Commissioner of Social Security may prescribe by regulation 
     the meaning of the term `use and benefit' for purposes of 
     this subsection.''.
       (3) Technical amendment.--Section 807(a) of such Act (42 
     U.S.C. 1007(a)) is amended, in the first sentence, by 
     striking ``for his or her benefit'' and inserting ``for his 
     or her use and benefit''.
       (c) Title XVI Amendments.--
       (1) Reissuance of benefits.--Section 1631(a)(2)(E) of such 
     Act (42 U.S.C. 1383(a)(2)(E)) is amended by inserting after 
     the first sentence the following: ``In any case in which a 
     representative payee that--
       ``(i) is not an individual (regardless of whether it is a 
     `qualified organization' within the meaning of subparagraph 
     (D)(ii)); or
       ``(ii) is an individual who, for any month during a period 
     when misuse occurs, serves 15 or more individuals who are 
     beneficiaries under this title, title II, title VIII, or any 
     combination of such titles;
     misuses all or part of an individual's benefit paid to such 
     representative payee, the Commissioner of Social Security 
     shall pay to the beneficiary or the beneficiary's alternative 
     representative payee an amount equal to the amount of such 
     benefit so misused. The provisions of this subparagraph are 
     subject to the limitations of subparagraph (H)(ii).''.
       (2) Exclusion of reissued benefits from resources.--Section 
     1613(a) of such Act (42 U.S.C. 1382b(a)) is amended--
       (A) in paragraph (12), by striking ``and'' at the end;
       (B) in paragraph (13), by striking the period and inserting 
     ``; and''; and
       (C) by inserting after paragraph (13) the following:
       ``(14) for the 9-month period beginning after the month in 
     which received, any amount received by such individual (or 
     spouse) or any other person whose income is deemed to be 
     included in such individual's (or spouse's) income for 
     purposes of this title as restitution for benefits under this 
     title, title II, or title VIII that a representative payee of 
     such individual (or spouse) or such other person under 
     section 205(j), 807, or 1631(a)(2) has misused.''.
       (3) Misuse of benefits defined.--Section 1631(a)(2)(A) of 
     such Act (42 U.S.C. 1383(a)(2)(A)) is amended by adding at 
     the end the following:
       ``(iv) For purposes of this paragraph, misuse of benefits 
     by a representative payee occurs in any case in which the 
     representative payee receives payment under this title for 
     the use and benefit of another person and converts such 
     payment, or any part thereof, to a use other than for the use 
     and benefit of such other person. The Commissioner of Social 
     Security may prescribe by regulation the meaning of the term 
     `use and benefit' for purposes of this clause.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to any case of benefit misuse by a representative 
     payee with respect to which the Commissioner of Social 
     Security makes the determination of misuse on or after 
     January 1, 1995.

     SEC. 102. OVERSIGHT OF REPRESENTATIVE PAYEES.

       (a) Certification of Bonding and Licensing Requirements for 
     Nongovernmental Organizational Representative Payees.--
       (1) Title ii amendments.--Section 205(j) of the Social 
     Security Act (42 U.S.C. 405(j)) is amended--
       (A) in paragraph (2)(C)(v), by striking ``a community-based 
     nonprofit social service agency licensed or bonded by the 
     State'' in subclause (I) and inserting ``a certified 
     community-based nonprofit social service agency (as defined 
     in paragraph (9))'';
       (B) in paragraph (3)(F), by striking ``community-based 
     nonprofit social service agencies'' and inserting ``certified 
     community-based nonprofit social service agencies (as defined 
     in paragraph (9))'';
       (C) in paragraph (4)(B), by striking ``any community-based 
     nonprofit social service agency which is bonded or licensed 
     in each State in which it serves as a representative payee'' 
     and inserting ``any certified community-based nonprofit 
     social service agency (as defined in paragraph (9))''; and
       (D) by adding after paragraph (8) (as added by section 
     101(a)(2) of this Act) the following:
       ``(9) For purposes of this subsection, the term `certified 
     community-based nonprofit social service agency' means a 
     community-based nonprofit social service agency which is in 
     compliance with requirements, under regulations which

[[Page S16185]]

     shall be prescribed by the Commissioner, for annual 
     certification to the Commissioner that it is bonded in 
     accordance with requirements specified by the Commissioner 
     and that it is licensed in each State in which it serves as a 
     representative payee (if licensing is available in the State) 
     in accordance with requirements specified by the 
     Commissioner. Any such annual certification shall include a 
     copy of any independent audit on the agency which may have 
     been performed since the previous certification.''.
       (2) Title xvi amendments.--Section 1631(a)(2) of such Act 
     (42 U.S.C. 1383(a)(2)) is amended--
       (A) in subparagraph (B)(vii), by striking ``a community-
     based nonprofit social service agency licensed or bonded by 
     the State'' in subclause (I) and inserting ``a certified 
     community-based nonprofit social service agency (as defined 
     in subparagraph (I))'';
       (B) in subparagraph (D)(ii)--
       (i) by striking ``or any community-based'' and all that 
     follows through ``in accordance'' in subclause (II) and 
     inserting ``or any certified community-based nonprofit social 
     service agency (as defined in subparagraph (I)), if the 
     agency, in accordance'';
       (ii) by redesignating items (aa) and (bb) as subclauses (I) 
     and (II), respectively (and adjusting the margins 
     accordingly); and
       (iii) by striking ``subclause (II)(bb)'' and inserting 
     ``subclause (II)''; and
       (C) by adding at the end the following:
       ``(I) For purposes of this paragraph, the term `certified 
     community-based nonprofit social service agency' means a 
     community-based nonprofit social service agency which is in 
     compliance with requirements, under regulations which shall 
     be prescribed by the Commissioner, for annual certification 
     to the Commissioner that it is bonded in accordance with 
     requirements specified by the Commissioner and that it is 
     licensed in each State in which it serves as a representative 
     payee (if licensing is available in the State) in accordance 
     with requirements specified by the Commissioner. Any such 
     annual certification shall include a copy of any independent 
     audit on the agency which may have been performed since the 
     previous certification.''.
       (3) Effective date.--The amendments made by this subsection 
     shall take effect on the first day of the thirteenth month 
     beginning after the date of the enactment of this Act.
       (b) Periodic Onsite Review.--
       (1) Title ii amendment.--Section 205(j)(6) of such Act (42 
     U.S.C. 405(j)(6)) is amended to read as follows:
       ``(6)(A) In addition to such other reviews of 
     representative payees as the Commissioner of Social Security 
     may otherwise conduct, the Commissioner shall provide for the 
     periodic onsite review of any person or agency located in the 
     United States that receives the benefits payable under this 
     title (alone or in combination with benefits payable under 
     title VIII or title XVI) to another individual pursuant to 
     the appointment of such person or agency as a representative 
     payee under this subsection, section 807, or section 
     1631(a)(2) in any case in which--
       ``(i) the representative payee is a person who serves in 
     that capacity with respect to 15 or more such individuals;
       ``(ii) the representative payee is a certified community-
     based nonprofit social service agency (as defined in 
     paragraph (9) of this subsection or section 1631(a)(2)(I)); 
     or
       ``(iii) the representative payee is an agency (other than 
     an agency described in clause (ii)) that serves in that 
     capacity with respect to 50 or more such individuals.
       ``(B) Within 120 days after the end of each fiscal year, 
     the Commissioner shall submit to the Committee on Ways and 
     Means of the House of Representatives and the Committee on 
     Finance of the Senate a report on the results of periodic 
     onsite reviews conducted during the fiscal year pursuant to 
     subparagraph (A) and of any other reviews of representative 
     payees conducted during such fiscal year in connection with 
     benefits under this title. Each such report shall describe in 
     detail all problems identified in such reviews and any 
     corrective action taken or planned to be taken to correct 
     such problems, and shall include--
       ``(i) the number of such reviews;
       ``(ii) the results of such reviews;
       ``(iii) the number of cases in which the representative 
     payee was changed and why;
       ``(iv) the number of cases involving the exercise of 
     expedited, targeted oversight of the representative payee by 
     the Commissioner conducted upon receipt of an allegation of 
     misuse of funds, failure to pay a vendor, or a similar 
     irregularity;
       ``(v) the number of cases discovered in which there was a 
     misuse of funds;
       ``(vi) how any such cases of misuse of funds were dealt 
     with by the Commissioner;
       ``(vii) the final disposition of such cases of misuse of 
     funds, including any criminal penalties imposed; and
       ``(viii) such other information as the Commissioner deems 
     appropriate.''.
       (2) Title viii amendment.--Section 807 of such Act (as 
     amended by section 101(b)(2) of this Act) is amended further 
     by adding at the end the following:
       ``(k) Periodic Onsite Review.--
       ``(1) In general.--In addition to such other reviews of 
     representative payees as the Commissioner of Social Security 
     may otherwise conduct, the Commissioner may provide for the 
     periodic onsite review of any person or agency that receives 
     the benefits payable under this title (alone or in 
     combination with benefits payable under title II or title 
     XVI) to another individual pursuant to the appointment of 
     such person or agency as a representative payee under this 
     section, section 205(j), or section 1631(a)(2) in any case in 
     which--
       ``(A) the representative payee is a person who serves in 
     that capacity with respect to 15 or more such individuals; or
       ``(B) the representative payee is an agency that serves in 
     that capacity with respect to 50 or more such individuals.
       ``(2) Report.--Within 120 days after the end of each fiscal 
     year, the Commissioner shall submit to the Committee on Ways 
     and Means of the House of Representatives and the Committee 
     on Finance of the Senate a report on the results of periodic 
     onsite reviews conducted during the fiscal year pursuant to 
     paragraph (1) and of any other reviews of representative 
     payees conducted during such fiscal year in connection with 
     benefits under this title. Each such report shall describe in 
     detail all problems identified in such reviews and any 
     corrective action taken or planned to be taken to correct 
     such problems, and shall include--
       ``(A) the number of such reviews;
       ``(B) the results of such reviews;
       ``(C) the number of cases in which the representative payee 
     was changed and why;
       ``(D) the number of cases involving the exercise of 
     expedited, targeted oversight of the representative payee by 
     the Commissioner conducted upon receipt of an allegation of 
     misuse of funds, failure to pay a vendor, or a similar 
     irregularity;
       ``(E) the number of cases discovered in which there was a 
     misuse of funds;
       ``(F) how any such cases of misuse of funds were dealt with 
     by the Commissioner;
       ``(G) the final disposition of such cases of misuse of 
     funds, including any criminal penalties imposed; and
       ``(H) such other information as the Commissioner deems 
     appropriate.''.
       (3) Title xvi amendment.--Section 1631(a)(2)(G) of such Act 
     (42 U.S.C. 1383(a)(2)(G)) is amended to read as follows:
       ``(G)(i) In addition to such other reviews of 
     representative payees as the Commissioner of Social Security 
     may otherwise conduct, the Commissioner shall provide for the 
     periodic onsite review of any person or agency that receives 
     the benefits payable under this title (alone or in 
     combination with benefits payable under title II or title 
     VIII) to another individual pursuant to the appointment of 
     the person or agency as a representative payee under this 
     paragraph, section 205(j), or section 807 in any case in 
     which--
       ``(I) the representative payee is a person who serves in 
     that capacity with respect to 15 or more such individuals;
       ``(II) the representative payee is a certified community-
     based nonprofit social service agency (as defined in 
     subparagraph (I) of this paragraph or section 205(j)(9)); or
       ``(III) the representative payee is an agency (other than 
     an agency described in subclause (II)) that serves in that 
     capacity with respect to 50 or more such individuals.
       ``(ii) Within 120 days after the end of each fiscal year, 
     the Commissioner shall submit to the Committee on Ways and 
     Means of the House of Representatives and the Committee on 
     Finance of the Senate a report on the results of periodic 
     onsite reviews conducted during the fiscal year pursuant to 
     clause (i) and of any other reviews of representative payees 
     conducted during such fiscal year in connection with benefits 
     under this title. Each such report shall describe in detail 
     all problems identified in the reviews and any corrective 
     action taken or planned to be taken to correct the problems, 
     and shall include--
       ``(I) the number of the reviews;
       ``(II) the results of such reviews;
       ``(III) the number of cases in which the representative 
     payee was changed and why;
       ``(IV) the number of cases involving the exercise of 
     expedited, targeted oversight of the representative payee by 
     the Commissioner conducted upon receipt of an allegation of 
     misuse of funds, failure to pay a vendor, or a similar 
     irregularity;
       ``(V) the number of cases discovered in which there was a 
     misuse of funds;
       ``(VI) how any such cases of misuse of funds were dealt 
     with by the Commissioner;
       ``(VII) the final disposition of such cases of misuse of 
     funds, including any criminal penalties imposed; and
       ``(VIII) such other information as the Commissioner deems 
     appropriate.''.

     SEC. 103. DISQUALIFICATION FROM SERVICE AS REPRESENTATIVE 
                   PAYEE OF PERSONS CONVICTED OF OFFENSES 
                   RESULTING IN IMPRISONMENT FOR MORE THAN 1 YEAR 
                   OR FLEEING PROSECUTION, CUSTODY, OR 
                   CONFINEMENT.

       (a) Title II Amendments.--Section 205(j)(2) of the Social 
     Security Act (42 U.S.C. 405(j)(2)) is amended--
       (1) in subparagraph (B)(i)--
       (A) by striking ``and'' at the end of subclause (III);
       (B) by redesignating subclause (IV) as subclause (VI); and
       (C) by inserting after subclause (III) the following:
       ``(IV) obtain information concerning whether such person 
     has been convicted of any other offense under Federal or 
     State law which resulted in imprisonment for more than 1 
     year,
       ``(V) obtain information concerning whether such person is 
     a person described in section 202(x)(1)(A)(iv), and'';
       (2) in subparagraph (B), by adding at the end the 
     following:
       ``(iii) Notwithstanding the provisions of section 552a of 
     title 5, United States Code, or any other provision of 
     Federal or State law (other than section 6103 of the Internal 
     Revenue Code of 1986 and section 1106(c) of this Act), the 
     Commissioner shall furnish any Federal, State, or local law 
     enforcement officer, upon the written request of the officer, 
     with the current address, social security account number, and 
     photograph (if applicable) of any person investigated under

[[Page S16186]]

     this paragraph, if the officer furnishes the Commissioner 
     with the name of such person and such other identifying 
     information as may reasonably be required by the Commissioner 
     to establish the unique identity of such person, and notifies 
     the Commissioner that--
       ``(I) such person is described in section 202(x)(1)(A)(iv),
       ``(II) such person has information that is necessary for 
     the officer to conduct the officer's official duties, and
       ``(III) the location or apprehension of such person is 
     within the officer's official duties.'';
       (3) in subparagraph (C)(i)(II)--
       (A) by striking ``subparagraph (B)(i)(IV),,'' and inserting 
     ``subparagraph (B)(i)(VI)''; and
       (B) by striking ``section 1631(a)(2)(B)(ii)(IV)'' and 
     inserting ``section 1631(a)(2)(B)(ii)(VI)''; and
       (4) in subparagraph (C)(i)--
       (A) by striking ``or'' at the end of subclause (II);
       (B) by striking the period at the end of subclause (III) 
     and inserting a comma; and
       (C) by adding at the end the following:
       ``(IV) such person has previously been convicted as 
     described in subparagraph (B)(i)(IV), unless the Commissioner 
     determines that such certification would be appropriate 
     notwithstanding such conviction, or
       ``(V) such person is person described in section 
     202(x)(1)(A)(iv).''.
       (b) Title VIII Amendments.--Section 807 of such Act (42 
     U.S.C. 1007) is amended--
       (1) in subsection (b)(2)--
       (A) by striking ``and'' at the end of subparagraph (C);
       (B) by redesignating subparagraph (D) as subparagraph (F); 
     and
       (C) by inserting after subparagraph (C) the following:
       ``(D) obtain information concerning whether such person has 
     been convicted of any other offense under Federal or State 
     law which resulted in imprisonment for more than 1 year;
       ``(E) obtain information concerning whether such person is 
     a person described in section 804(a)(2); and'';
       (2) in subsection (b), by adding at the end the following:
       ``(3) Notwithstanding the provisions of section 552a of 
     title 5, United States Code, or any other provision of 
     Federal or State law (other than section 6103 of the Internal 
     Revenue Code of 1986 and section 1106(c) of this Act), the 
     Commissioner shall furnish any Federal, State, or local law 
     enforcement officer, upon the written request of the officer, 
     with the current address, social security account number, and 
     photograph (if applicable) of any person investigated under 
     this subsection, if the officer furnishes the Commissioner 
     with the name of such person and such other identifying 
     information as may reasonably be required by the Commissioner 
     to establish the unique identity of such person, and notifies 
     the Commissioner that--
       ``(A) such person is described in section 804(a)(2),
       ``(B) such person has information that is necessary for the 
     officer to conduct the officer's official duties, and
       ``(C) the location or apprehension of such person is within 
     the officer's official duties.''; and
       (3) in subsection (d)(1)--
       (A) by striking ``or'' at the end of subparagraph (B);
       (B) by striking the period at the end of subparagraph (C) 
     and inserting a semicolon; and
       (C) by adding at the end the following:
       ``(D) such person has previously been convicted as 
     described in subsection (b)(2)(D), unless the Commissioner 
     determines that such payment would be appropriate 
     notwithstanding such conviction; or
       ``(E) such person is a person described in section 
     804(a)(2).''.
       (c) Title XVI Amendments.--Section 1631(a)(2)(B) of such 
     Act (42 U.S.C. 1383(a)(2)(B)) is amended--
       (1) in clause (ii)--
       (A) by striking ``and'' at the end of subclause (III);
       (B) by redesignating subclause (IV) as subclause (VI); and
       (C) by inserting after subclause (III) the following:
       ``(IV) obtain information concerning whether the person has 
     been convicted of any other offense under Federal or State 
     law which resulted in imprisonment for more than 1 year;
       ``(V) obtain information concerning whether such person is 
     a person described in section 1611(e)(4)(A); and'';
       (2) in clause (iii)(II)--
       (A) by striking ``clause (ii)(IV)'' and inserting ``clause 
     (ii)(VI)''; and
       (B) by striking ``section 205(j)(2)(B)(i)(IV)'' and 
     inserting ``section 205(j)(2)(B)(i)(VI)'';
       (3) in clause (iii)--
       (A) by striking ``or'' at the end of subclause (II);
       (B) by striking the period at the end of subclause (III) 
     and inserting a semicolon; and
       (C) by adding at the end the following:
       ``(IV) the person has previously been convicted as 
     described in clause (ii)(IV) of this subparagraph, unless the 
     Commissioner determines that the payment would be appropriate 
     notwithstanding the conviction; or
       ``(V) such person is a person described in section 
     1611(e)(4)(A).''; and
       (4) by adding at the end the following:
       ``(xiv) Notwithstanding the provisions of section 552a of 
     title 5, United States Code, or any other provision of 
     Federal or State law (other than section 6103 of the Internal 
     Revenue Code of 1986 and section 1106(c) of this Act), the 
     Commissioner shall furnish any Federal, State, or local law 
     enforcement officer, upon the written request of the officer, 
     with the current address, social security account number, and 
     photograph (if applicable) of any person investigated under 
     this subparagraph, if the officer furnishes the Commissioner 
     with the name of such person and such other identifying 
     information as may reasonably be required by the Commissioner 
     to establish the unique identity of such person, and notifies 
     the Commissioner that--
       ``(I) such person is described in section 1611(e)(4)(A),
       ``(II) such person has information that is necessary for 
     the officer to conduct the officer's official duties, and
       ``(III) the location or apprehension of such person is 
     within the officer's official duties.''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on the first day of the thirteenth month 
     beginning after the date of the enactment of this Act.
       (e) Report to Congress.--The Commissioner of Social 
     Security, in consultation with the Inspector General of the 
     Social Security Administration, shall prepare a report 
     evaluating whether the existing procedures and reviews for 
     the qualification (including disqualification) of 
     representative payees are sufficient to enable the 
     Commissioner to protect benefits from being misused by 
     representative payees. The Commissioner shall submit the 
     report to the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate no 
     later than 270 days after the date of the enactment of this 
     Act. The Commissioner shall include in such report any 
     recommendations that the Commissioner considers appropriate.

     SEC. 104. FEE FORFEITURE IN CASE OF BENEFIT MISUSE BY 
                   REPRESENTATIVE PAYEES.

       (a) Title II Amendments.--Section 205(j)(4)(A)(i) of the 
     Social Security Act (42 U.S.C. 405(j)(4)(A)(i)) is amended--
       (1) in the first sentence, by striking ``A'' and inserting 
     ``Except as provided in the next sentence, a''; and
       (2) in the second sentence, by striking ``The Secretary'' 
     and inserting the following: ``A qualified organization may 
     not collect a fee from an individual for any month with 
     respect to which the Commissioner of Social Security or a 
     court of competent jurisdiction has determined that the 
     organization misused all or part of the individual's benefit, 
     and any amount so collected by the qualified organization for 
     such month shall be treated as a misused part of the 
     individual's benefit for purposes of paragraphs (5) and (6). 
     The Commissioner''.
       (b) Title XVI Amendments.--Section 1631(a)(2)(D)(i) of such 
     Act (42 U.S.C. 1383(a)(2)(D)(i)) is amended--
       (1) in the first sentence, by striking ``A'' and inserting 
     ``Except as provided in the next sentence, a''; and
       (2) in the second sentence, by striking ``The 
     Commissioner'' and inserting the following: ``A qualified 
     organization may not collect a fee from an individual for any 
     month with respect to which the Commissioner of Social 
     Security or a court of competent jurisdiction has determined 
     that the organization misused all or part of the individual's 
     benefit, and any amount so collected by the qualified 
     organization for such month shall be treated as a misused 
     part of the individual's benefit for purposes of 
     subparagraphs (E) and (F). The Commissioner''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to any month involving benefit misuse by a 
     representative payee in any case with respect to which the 
     Commissioner of Social Security or a court of competent 
     jurisdiction makes the determination of misuse after 180 days 
     after the date of the enactment of this Act.

     SEC. 105. LIABILITY OF REPRESENTATIVE PAYEES FOR MISUSED 
                   BENEFITS.

       (a) Title II Amendments.--Section 205(j) of the Social 
     Security Act (42 U.S.C. 405(j)) (as amended by sections 101 
     and 102) is amended further--
       (1) by redesignating paragraphs (7), (8), and (9) as 
     paragraphs (8), (9), and (10), respectively;
       (2) in paragraphs (2)(C)(v), (3)(F), and (4)(B), by 
     striking ``paragraph (9)'' and inserting ``paragraph (10)'';
       (3) in paragraph (6)(A)(ii), by striking ``paragraph (9)'' 
     and inserting ``paragraph (10)''; and
       (4) by inserting after paragraph (6) the following:
       ``(7)(A) If the Commissioner of Social Security or a court 
     of competent jurisdiction determines that a representative 
     payee that is not a Federal, State, or local government 
     agency has misused all or part of an individual's benefit 
     that was paid to such representative payee under this 
     subsection, the representative payee shall be liable for the 
     amount misused, and such amount (to the extent not repaid by 
     the representative payee) shall be treated as an overpayment 
     of benefits under this title to the representative payee for 
     all purposes of this Act and related laws pertaining to the 
     recovery of such overpayments. Subject to subparagraph (B), 
     upon recovering all or any part of such amount, the 
     Commissioner shall certify an amount equal to the recovered 
     amount for payment to such individual or such individual's 
     alternative representative payee.
       ``(B) The total of the amount certified for payment to such 
     individual or such individual's alternative representative 
     payee under subparagraph (A) and the amount certified for 
     payment under paragraph (5) may not exceed the total benefit 
     amount misused by the representative payee with respect to 
     such individual.''.
       (b) Title VIII Amendment.--Section 807 of such Act (as 
     amended by section 102(b)(2)) is amended further by adding at 
     the end the following:
       ``(l) Liability for Misused Amounts.--
       ``(1) In general.--If the Commissioner of Social Security 
     or a court of competent jurisdiction determines that a 
     representative payee that is not a Federal, State, or local 
     government agency has misused all or part of a qualified 
     individual's benefit that was paid to such representative 
     payee under this section, the representative

[[Page S16187]]

     payee shall be liable for the amount misused, and such amount 
     (to the extent not repaid by the representative payee) shall 
     be treated as an overpayment of benefits under this title to 
     the representative payee for all purposes of this Act and 
     related laws pertaining to the recovery of such overpayments. 
     Subject to paragraph (2), upon recovering all or any part of 
     such amount, the Commissioner shall make payment of an amount 
     equal to the recovered amount to such qualified individual or 
     such qualified individual's alternative representative payee.
       ``(2) Limitation.--The total of the amount paid to such 
     individual or such individual's alternative representative 
     payee under paragraph (1) and the amount paid under 
     subsection (i) may not exceed the total benefit amount 
     misused by the representative payee with respect to such 
     individual.''.
       (c) Title XVI Amendments.--Section 1631(a)(2) of such Act 
     (42 U.S.C. 1383(a)(2)) (as amended by section 102(b)(3)) is 
     amended further--
       (1) in subparagraph (G)(i)(II), by striking ``section 
     205(j)(9)'' and inserting ``section 205(j)(10)''; and
       (2) by striking subparagraph (H) and inserting the 
     following:
       ``(H)(i) If the Commissioner of Social Security or a court 
     of competent jurisdiction determines that a representative 
     payee that is not a Federal, State, or local government 
     agency has misused all or part of an individual's benefit 
     that was paid to the representative payee under this 
     paragraph, the representative payee shall be liable for the 
     amount misused, and the amount (to the extent not repaid by 
     the representative payee) shall be treated as an overpayment 
     of benefits under this title to the representative payee for 
     all purposes of this Act and related laws pertaining to the 
     recovery of the overpayments. Subject to clause (ii), upon 
     recovering all or any part of the amount, the Commissioner 
     shall make payment of an amount equal to the recovered amount 
     to such individual or such individual's alternative 
     representative payee.
       ``(ii) The total of the amount paid to such individual or 
     such individual's alternative representative payee under 
     clause (i) and the amount paid under subparagraph (E) may not 
     exceed the total benefit amount misused by the representative 
     payee with respect to such individual.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to benefit misuse by a representative payee in 
     any case with respect to which the Commissioner of Social 
     Security or a court of competent jurisdiction makes the 
     determination of misuse after 180 days after the date of the 
     enactment of this Act.

     SEC. 106. AUTHORITY TO REDIRECT DELIVERY OF BENEFIT PAYMENTS 
                   WHEN A REPRESENTATIVE PAYEE FAILS TO PROVIDE 
                   REQUIRED ACCOUNTING.

       (a) Title II Amendments.--Section 205(j)(3) of the Social 
     Security Act (42 U.S.C. 405(j)(3)) (as amended by sections 
     102(a)(1)(B) and 105(a)(2)) is amended--
       (1) by redesignating subparagraphs (E) and (F) as 
     subparagraphs (F) and (G), respectively; and
       (2) by inserting after subparagraph (D) the following:
       ``(E) In any case in which the person described in 
     subparagraph (A) or (D) receiving payments on behalf of 
     another fails to submit a report required by the Commissioner 
     of Social Security under subparagraph (A) or (D), the 
     Commissioner may, after furnishing notice to such person and 
     the individual entitled to such payment, require that such 
     person appear in person at a field office of the Social 
     Security Administration serving the area in which the 
     individual resides in order to receive such payments.''.
       (b) Title VIII Amendments.--Section 807(h) of such Act (42 
     U.S.C. 1007(h)) is amended--
       (1) by redesignating paragraphs (3) and (4) as paragraphs 
     (4) and (5), respectively; and
       (2) by inserting after paragraph (2) the following:
       ``(3) Authority to redirect delivery of benefit payments 
     when a representative payee fails to provide required 
     accounting.--In any case in which the person described in 
     paragraph (1) or (2) receiving benefit payments on behalf of 
     a qualified individual fails to submit a report required by 
     the Commissioner of Social Security under paragraph (1) or 
     (2), the Commissioner may, after furnishing notice to such 
     person and the qualified individual, require that such person 
     appear in person at a United States Government facility 
     designated by the Social Security Administration as serving 
     the area in which the qualified individual resides in order 
     to receive such benefit payments.''.
       (c) Title XVI Amendment.--Section 1631(a)(2)(C) of such Act 
     (42 U.S.C. 1383(a)(2)(C)) is amended by adding at the end the 
     following:
       ``(v) In any case in which the person described in clause 
     (i) or (iv) receiving payments on behalf of another fails to 
     submit a report required by the Commissioner of Social 
     Security under clause (i) or (iv), the Commissioner may, 
     after furnishing notice to the person and the individual 
     entitled to the payment, require that such person appear in 
     person at a field office of the Social Security 
     Administration serving the area in which the individual 
     resides in order to receive such payments.''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect 180 days after the date of the enactment of 
     this Act.

     SEC. 107. SURVEY OF USE OF PAYMENTS BY REPRESENTATIVE PAYEES.

       (a) In General.--Section 1110 of the Social Security Act 
     (42 U.S.C. 1310) is amended by adding at the end the 
     following:
       ``(c)(1) In addition to the amount otherwise appropriated 
     in any other law to carry out subsection (a) for fiscal year 
     2004, up to $8,500,000 is authorized and appropriated and 
     shall be used by the Commissioner of Social Security under 
     this subsection for purposes of conducting a statistically 
     valid survey to determine how payments made to individuals, 
     organizations, and State or local government agencies that 
     are representative payees for benefits paid under title II or 
     XVI are being managed and used on behalf of the beneficiaries 
     for whom such benefits are paid.
       ``(2) Not later than 18 months after the date of enactment 
     of this subsection, the Commissioner of Social Security shall 
     submit a report on the survey conducted in accordance with 
     paragraph (1) to the Committee on Ways and Means of the House 
     of Representatives and the Committee on Finance of the 
     Senate.''.

                        Subtitle B--Enforcement

     SEC. 111. CIVIL MONETARY PENALTY AUTHORITY WITH RESPECT TO 
                   WRONGFUL CONVERSIONS BY REPRESENTATIVE PAYEES.

       (a) In General.--Section 1129(a) of the Social Security Act 
     (42 U.S.C. 1320a-8) is amended by adding at the end the 
     following:
       ``(3) Any person (including an organization, agency, or 
     other entity) who, having received, while acting in the 
     capacity of a representative payee pursuant to section 
     205(j), 807, or 1631(a)(2), a payment under title II, VIII, 
     or XVI for the use and benefit of another individual, 
     converts such payment, or any part thereof, to a use that 
     such person knows or should know is other than for the use 
     and benefit of such other individual shall be subject to, in 
     addition to any other penalties that may be prescribed by 
     law, a civil money penalty of not more than $5,000 for each 
     such conversion. Such person shall also be subject to an 
     assessment, in lieu of damages sustained by the United States 
     resulting from the conversion, of not more than twice the 
     amount of any payments so converted.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply with respect to violations committed after the 
     date of the enactment of this Act.

                     TITLE II--PROGRAM PROTECTIONS

     SEC. 201. CIVIL MONETARY PENALTY AUTHORITY WITH RESPECT TO 
                   WITHHOLDING OF MATERIAL FACTS.

       (a) Treatment of Withholding of Material Facts.--
       (1) Civil penalties.--Section 1129(a)(1) of the Social 
     Security Act (42 U.S.C. 1320a-8(a)(1)) is amended--
       (A) by striking ``who'' in the first sentence and inserting 
     ``who--'';
       (B) by striking ``makes'' in the first sentence and all 
     that follows through ``shall be subject to,'' and inserting 
     the following:
       ``(A) makes, or causes to be made, a statement or 
     representation of a material fact, for use in determining any 
     initial or continuing right to or the amount of monthly 
     insurance benefits under title II or benefits or payments 
     under title VIII or XVI, that the person knows or should know 
     is false or misleading,
       ``(B) makes such a statement or representation for such use 
     with knowing disregard for the truth, or
       ``(C) omits from a statement or representation for such 
     use, or otherwise withholds disclosure of, a fact which the 
     person knows or should know is material to the determination 
     of any initial or continuing right to or the amount of 
     monthly insurance benefits under title II or benefits or 
     payments under title VIII or XVI, if the person knows, or 
     should know, that the statement or representation with such 
     omission is false or misleading or that the withholding of 
     such disclosure is misleading,
     shall be subject to,'';
       (C) by inserting ``or each receipt of such benefits or 
     payments while withholding disclosure of such fact'' after 
     ``each such statement or representation'' in the first 
     sentence;
       (D) by inserting ``or because of such withholding of 
     disclosure of a material fact'' after ``because of such 
     statement or representation'' in the second sentence; and
       (E) by inserting ``or such a withholding of disclosure'' 
     after ``such a statement or representation'' in the second 
     sentence.
       (2) Administrative procedure for imposing penalties.--
     Section 1129A(a) of such Act (42 U.S.C. 1320a-8a(a)) is 
     amended--
       (A) by striking ``who'' the first place it appears and 
     inserting ``who--''; and
       (B) by striking ``makes'' and all that follows through 
     ``shall be subject to,'' and inserting the following:
       ``(1) makes, or causes to be made, a statement or 
     representation of a material fact, for use in determining any 
     initial or continuing right to or the amount of monthly 
     insurance benefits under title II or benefits or payments 
     under title XVI that the person knows or should know is false 
     or misleading,
       ``(2) makes such a statement or representation for such use 
     with knowing disregard for the truth, or
       ``(3) omits from a statement or representation for such 
     use, or otherwise withholds disclosure of, a fact which the 
     person knows or should know is material to the determination 
     of any initial or continuing right to or the amount of 
     monthly insurance benefits under title II or benefits or 
     payments under title XVI, if the person knows, or should 
     know, that the statement or representation with such omission 
     is false or misleading or that the withholding of such 
     disclosure is misleading,
     shall be subject to,''.
       (b) Clarification of Treatment of Recovered Amounts.--
     Section 1129(e)(2)(B) of such Act (42 U.S.C. 1320a-
     8(e)(2)(B)) is amended by striking ``In the case of amounts 
     recovered arising out of a determination relating to title 
     VIII or XVI,'' and inserting ``In the case of any other 
     amounts recovered under this section,''.

[[Page S16188]]

       (c) Conforming Amendments.--
       (1) Section 1129(b)(3)(A) of such Act (42 U.S.C. 1320a-
     8(b)(3)(A)) is amended by striking ``charging fraud or false 
     statements''.
       (2) Section 1129(c)(1) of such Act (42 U.S.C. 1320a-
     8(c)(1)) is amended by striking ``and representations'' and 
     inserting ``, representations, or actions''.
       (3) Section 1129(e)(1)(A) of such Act (42 U.S.C. 1320a-
     8(e)(1)(A)) is amended by striking ``statement or 
     representation referred to in subsection (a) was made'' and 
     inserting ``violation occurred''.
       (d) Effective Date.--The amendments made by this section 
     shall apply with respect to violations committed after the 
     date on which the Commissioner of Social Security implements 
     the centralized computer file described in section 202.

     SEC. 202. ISSUANCE BY COMMISSIONER OF SOCIAL SECURITY OF 
                   RECEIPTS TO ACKNOWLEDGE SUBMISSION OF REPORTS 
                   OF CHANGES IN WORK OR EARNINGS STATUS OF 
                   DISABLED BENEFICIARIES.

       Effective as soon as possible, but not later than 1 year 
     after the date of the enactment of this Act, until such time 
     as the Commissioner of Social Security implements a 
     centralized computer file recording the date of the 
     submission of information by a disabled beneficiary (or 
     representative) regarding a change in the beneficiary's work 
     or earnings status, the Commissioner shall issue a receipt to 
     the disabled beneficiary (or representative) each time he or 
     she submits documentation, or otherwise reports to the 
     Commissioner, on a change in such status.

     SEC. 203. DENIAL OF TITLE II BENEFITS TO PERSONS FLEEING 
                   PROSECUTION, CUSTODY, OR CONFINEMENT, AND TO 
                   PERSONS VIOLATING PROBATION OR PAROLE.

       (a) In General.--Section 202(x) of the Social Security Act 
     (42 U.S.C. 402(x)) is amended--
       (1) in the heading, by striking ``Prisoners'' and all that 
     follows and inserting the following: ``Prisoners, Certain 
     Other Inmates of Publicly Funded Institutions, Fugitives, 
     Probationers, and Parolees'';
       (2) in paragraph (1)(A)(ii)(IV), by striking ``or'' at the 
     end;
       (3) in paragraph (1)(A)(iii), by striking the period at the 
     end and inserting a comma;
       (4) by inserting after paragraph (1)(A)(iii) the following:
       ``(iv) is fleeing to avoid prosecution, or custody or 
     confinement after conviction, under the laws of the place 
     from which the person flees, for a crime, or an attempt to 
     commit a crime, which is a felony under the laws of the place 
     from which the person flees, or, in jurisdictions that do not 
     define crimes as felonies, is punishable by death or 
     imprisonment for a term exceeding 1 year regardless of the 
     actual sentence imposed, or
       ``(v) is violating a condition of probation or parole 
     imposed under Federal or State law.'';
       (5) by adding at the end of paragraph (1)(B) the following:
       ``(iii) Notwithstanding subparagraph (A), the Commissioner 
     shall, for good cause shown, pay the individual benefits that 
     have been withheld or would otherwise be withheld pursuant to 
     clause (iv) or (v) of subparagraph (A) if the Commissioner 
     determines that--
       ``(I) a court of competent jurisdiction has found the 
     individual not guilty of the criminal offense, dismissed the 
     charges relating to the criminal offense, vacated the warrant 
     for arrest of the individual for the criminal offense, or 
     issued any similar exonerating order (or taken similar 
     exonerating action), or
       ``(II) the individual was erroneously implicated in 
     connection with the criminal offense by reason of identity 
     fraud.
       ``(iv) Notwithstanding subparagraph (A), the Commissioner 
     may, for good cause shown based on mitigating circumstances, 
     pay the individual benefits that have been withheld or would 
     otherwise be withheld pursuant to clause (iv) or (v) of 
     subparagraph (A) if the Commissioner determines that--
       ``(I) the offense described in clause (iv) or underlying 
     the imposition of the probation or parole described in clause 
     (v) was nonviolent and not drug-related, and
       ``(II) in the case of an individual from whom benefits have 
     been withheld or otherwise would be withheld pursuant to 
     subparagraph (A)(v), the action that resulted in the 
     violation of a condition of probation or parole was 
     nonviolent and not drug-related.''; and
       (6) in paragraph (3), by adding at the end the following:
       ``(C) Notwithstanding the provisions of section 552a of 
     title 5, United States Code, or any other provision of 
     Federal or State law (other than section 6103 of the Internal 
     Revenue Code of 1986 and section 1106(c) of this Act), the 
     Commissioner shall furnish any Federal, State, or local law 
     enforcement officer, upon the written request of the officer, 
     with the current address, Social Security number, and 
     photograph (if applicable) of any beneficiary under this 
     title, if the officer furnishes the Commissioner with the 
     name of the beneficiary, and other identifying information as 
     reasonably required by the Commissioner to establish the 
     unique identity of the beneficiary, and notifies the 
     Commissioner that--
       ``(i) the beneficiary is described in clause (iv) or (v) of 
     paragraph (1)(A); and
       ``(ii) the location or apprehension of the beneficiary is 
     within the officer's official duties.''.
       (b) Conforming Amendments to Title XVI.--Section 1611(e) of 
     the Social Security Act (42 U.S.C. 1382(e)) is amended--
       (1) in paragraph (4)--
       (A) by redesignating subparagraphs (A) and (B) as clauses 
     (i) and (ii), respectively;
       (B) by inserting ``(A)'' after ``(4)'';
       (C) in clause (i) of subparagraph (A) (as redesignated by 
     subparagraph (A)), by striking ``or which, in the case of the 
     State of 
     New Jersey, is a high misdemeanor under the laws of such 
     State'' and inserting ``or, in jurisdictions that do not 
     define crimes as felonies, is punishable by death or 
     imprisonment for a term exceeding 1 year regardless of the 
     actual sentence imposed''; and
       (D) by adding at the end the following:
       ``(B) Notwithstanding subparagraph (A), the Commissioner 
     shall, for good cause shown, treat the person referred to in 
     subparagraph (A) as an eligible individual or eligible spouse 
     if the Commissioner determines that--
       ``(i) a court of competent jurisdiction has found the 
     person not guilty of the criminal offense, dismissed the 
     charges relating to the criminal offense, vacated the warrant 
     for arrest of the person for the criminal offense, or issued 
     any similar exonerating order (or taken similar exonerating 
     action), or
       ``(ii) the person was erroneously implicated in connection 
     with the criminal offense by reason of identity fraud.
       ``(C) Notwithstanding subparagraph (A), the Commissioner 
     may, for good cause shown based on mitigating circumstances, 
     treat the person referred to in subparagraph (A) as an 
     eligible individual or eligible spouse if the Commissioner 
     determines that--
       ``(i) the offense described in subparagraph (A)(i) or 
     underlying the imposition of the probation or parole 
     described in subparagraph (A)(ii) was nonviolent and not 
     drug-related, and
       ``(ii) in the case of a person who is not considered an 
     eligible individual or eligible spouse pursuant to 
     subparagraph (A)(ii), the action that resulted in the 
     violation of a condition of probation or parole was 
     nonviolent and not drug-related.''; and
       (2) in paragraph (5), by striking subparagraphs (A) and (B) 
     and inserting the following:
       ``(A) the recipient is described in clause (i) or (ii) of 
     paragraph (4)(A); and
       ``(B) the location or apprehension of the recipient is 
     within the officer's official duties.''.
       (c) Conforming Amendment.--Section 804(a)(2) of the Social 
     Security Act (42 U.S.C. 1004(a)(2)) is amended by striking 
     ``or which, in the case of the State of New Jersey, is a high 
     misdemeanor under the laws of such State'' and inserting 
     ``or, in jurisdictions that do not define crimes as felonies, 
     is punishable by death or imprisonment for a term exceeding 1 
     year regardless of the actual sentence imposed''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on the first day of the first month that 
     begins on or after the date that is 9 months after the date 
     of enactment of this Act.

     SEC. 204. REQUIREMENTS RELATING TO OFFERS TO PROVIDE FOR A 
                   FEE, A PRODUCT OR SERVICE AVAILABLE WITHOUT 
                   CHARGE FROM THE SOCIAL SECURITY ADMINISTRATION.

       (a) In General.--Section 1140 of the Social Security Act 
     (42 U.S.C. 1320b-10) is amended--
       (1) in subsection (a), by adding at the end the following:
       ``(4)(A) No person shall offer, for a fee, to assist an 
     individual to obtain a product or service that the person 
     knows or should know is provided free of charge by the Social 
     Security Administration unless, at the time the offer is 
     made, the person provides to the individual to whom the offer 
     is tendered a notice that--
       ``(i) explains that the product or service is available 
     free of charge from the Social Security Administration, and
       ``(ii) complies with standards prescribed by the 
     Commissioner of Social Security respecting the content of 
     such notice and its placement, visibility, and legibility.
       ``(B) Subparagraph (A) shall not apply to any offer--
       ``(i) to serve as a claimant representative in connection 
     with a claim arising under title II, title VIII, or title 
     XVI; or
       ``(ii) to prepare, or assist in the preparation of, an 
     individual's plan for achieving self-support under title 
     XVI.''; and
       (2) in the heading, by striking ``prohibition of misuse of 
     symbols, emblems, or names in reference'' and inserting 
     ``prohibitions relating to references''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to offers of assistance made after the sixth 
     month ending after the Commissioner of Social Security 
     promulgates final regulations prescribing the standards 
     applicable to the notice required to be provided in 
     connection with such offer. The Commissioner shall promulgate 
     such final regulations within 1 year after the date of the 
     enactment of this Act.

     SEC. 205. REFUSAL TO RECOGNIZE CERTAIN INDIVIDUALS AS 
                   CLAIMANT REPRESENTATIVES.

       Section 206(a)(1) of the Social Security Act (42 U.S.C. 
     406(a)(1)) is amended by inserting after the second sentence 
     the following: ``Notwithstanding the preceding sentences, the 
     Commissioner, after due notice and opportunity for hearing, 
     (A) may refuse to recognize as a representative, and may 
     disqualify a representative already recognized, any attorney 
     who has been disbarred or suspended from any court or bar to 
     which he or she was previously admitted to practice or who 
     has been disqualified from participating in or appearing 
     before any Federal program or agency, and (B) may refuse to 
     recognize, and may disqualify, as a non-attorney 
     representative any attorney who has been disbarred or 
     suspended from any court or bar to which he or she was 
     previously admitted to practice. A representative who has 
     been disqualified or suspended pursuant to this section from 
     appearing before the Social Security Administration as a 
     result of collecting or receiving a fee in excess of the 
     amount authorized shall be barred from appearing before the 
     Social Security Administration as a representative until full 
     restitution is made to the claimant and, thereafter,

[[Page S16189]]

     may be considered for reinstatement only under such rules as 
     the Commissioner may prescribe.''.

     SEC. 206. CRIMINAL PENALTY FOR CORRUPT OR FORCIBLE 
                   INTERFERENCE WITH ADMINISTRATION OF SOCIAL 
                   SECURITY ACT.

       Part A of title XI of the Social Security Act (42 U.S.C. 
     1301 et seq.) is amended by inserting after section 1129A the 
     following:


   ``ATTEMPTS TO INTERFERE WITH ADMINISTRATION OF SOCIAL SECURITY ACT

       ``Sec. 1129B. Whoever corruptly or by force or threats of 
     force (including any threatening letter or communication) 
     attempts to intimidate or impede any officer, employee, or 
     contractor of the Social Security Administration (including 
     any State employee of a disability determination service or 
     any other individual designated by the Commissioner of Social 
     Security) acting in an official capacity to carry out a duty 
     under this Act, or in any other way corruptly or by force or 
     threats of force (including any threatening letter or 
     communication) obstructs or impedes, or attempts to obstruct 
     or impede, the due administration of this Act, shall be fined 
     not more than $5,000, imprisoned not more than 3 years, or 
     both, except that if the offense is committed only by threats 
     of force, the person shall be fined not more than $3,000, 
     imprisoned not more than 1 year, or both. In this subsection, 
     the term `threats of force' means threats of harm to the 
     officer or employee of the United States or to a contractor 
     of the Social Security Administration, or to a member of the 
     family of such an officer or employee or contractor.''.

     SEC. 207. USE OF SYMBOLS, EMBLEMS, OR NAMES IN REFERENCE TO 
                   SOCIAL SECURITY OR MEDICARE.

       (a) In General.--Section 1140(a)(1) of the Social Security 
     Act (42 U.S.C. 1320b-10(a)(1)) is amended--
       (1) in subparagraph (A), by inserting `` `Centers for 
     Medicare & Medicaid Services','' after `` `Health Care 
     Financing Administration','', by striking ``or `Medicaid', '' 
     and inserting `` `Medicaid', `Death Benefits Update', 
     `Federal Benefit Information', `Funeral Expenses', or `Final 
     Supplemental Plan','' and by inserting `` `CMS','' after 
     `` `HCFA','';
       (2) in subparagraph (B), by inserting ``Centers for 
     Medicare & Medicaid Services,'' after ``Health Care Financing 
     Administration,'' each place it appears; and
       (3) in the matter following subparagraph (B), by striking 
     ``the Health Care Financing Administration,'' each place it 
     appears and inserting ``the Centers for Medicare & Medicaid 
     Services,''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to items sent after 180 days after the date of 
     the enactment of this Act.

     SEC. 208. DISQUALIFICATION FROM PAYMENT DURING TRIAL WORK 
                   PERIOD UPON CONVICTION OF FRAUDULENT 
                   CONCEALMENT OF WORK ACTIVITY.

       (a) In General.--Section 222(c) of the Social Security Act 
     (42 U.S.C. 422(c)) is amended by adding at the end the 
     following:
       ``(5) Upon conviction by a Federal court that an individual 
     has fraudulently concealed work activity during a period of 
     trial work from the Commissioner of Social Security by--
       ``(A) providing false information to the Commissioner of 
     Social Security as to whether the individual had earnings in 
     or for a particular period, or as to the amount thereof;
       ``(B) receiving disability insurance benefits under this 
     title while engaging in work activity under another identity, 
     including under another social security account number or a 
     number purporting to be a social security account number; or
       ``(C) taking other actions to conceal work activity with an 
     intent fraudulently to secure payment in a greater amount 
     than is due or when no payment is authorized,

     no benefit shall be payable to such individual under this 
     title with respect to a period of disability for any month 
     before such conviction during which the individual rendered 
     services during the period of trial work with respect to 
     which the fraudulently concealed work activity occurred, and 
     amounts otherwise due under this title as restitution, 
     penalties, assessments, fines, or other repayments shall in 
     all cases be in addition to any amounts for which such 
     individual is liable as overpayments by reason of such 
     concealment.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to work activity performed after the 
     date of the enactment of this Act.

     SEC. 209. AUTHORITY FOR JUDICIAL ORDERS OF RESTITUTION.

       (a) Amendments to Title II.--Section 208 of the Social 
     Security Act (42 U.S.C. 408) is amended--
       (1) by redesignating subsections (b), (c), and (d) as 
     subsections (c), (d), and (e), respectively;
       (2) by inserting after subsection (a) the following:
       ``(b)(1) Any Federal court, when sentencing a defendant 
     convicted of an offense under subsection (a), may order, in 
     addition to or in lieu of any other penalty authorized by 
     law, that the defendant make restitution to the victims of 
     such offense specified in paragraph (4).
       ``(2) Sections 3612, 3663, and 3664 of title 18, United 
     States Code, shall apply with respect to the issuance and 
     enforcement of orders of restitution to victims of such 
     offense under this subsection.
       ``(3) If the court does not order restitution, or orders 
     only partial restitution, under this subsection, the court 
     shall state on the record the reasons therefor.
       ``(4) For purposes of paragraphs (1) and (2), the victims 
     of an offense under subsection (a) are the following:
       ``(A) Any individual who suffers a financial loss as a 
     result of the defendant's violation of subsection (a).
       ``(B) The Commissioner of Social Security, to the extent 
     that the defendant's violation of subsection (a) results in--
       ``(i) the Commissioner of Social Security making a benefit 
     payment that should not have been made; or
       ``(ii) an individual suffering a financial loss due to the 
     defendant's violation of subsection (a) in his or her 
     capacity as the individual's representative payee appointed 
     pursuant to section 205(j).
       ``(5)(A) Except as provided in subparagraph (B), funds paid 
     to the Commissioner of Social Security as restitution 
     pursuant to a court order shall be deposited in the Federal 
     Old-Age and Survivors Insurance Trust Fund, or the Federal 
     Disability Insurance Trust Fund, as appropriate.
       ``(B) In the case of funds paid to the Commissioner of 
     Social Security pursuant to paragraph (4)(B)(ii), the 
     Commissioner of Social Security shall certify for payment to 
     the individual described in such paragraph an amount equal to 
     the lesser of the amount of the funds so paid or the 
     individual's outstanding financial loss, except that such 
     amount may be reduced by the amount of any overpayments of 
     benefits owed under this title, title VIII, or title XVI by 
     the individual.''; and
       (3) by amending subsection (c) (as redesignated by 
     paragraph (1)), by striking the second sentence.
       (b) Amendments to Title VIII.--Section 811 of the Social 
     Security Act (42 U.S.C. 1011) is amended--
       (1) by striking subsection (b) and inserting the following:
       ``(b) Court Order for Restitution.--
       ``(1) In general.--Any Federal court, when sentencing a 
     defendant convicted of an offense under subsection (a), may 
     order, in addition to or in lieu of any other penalty 
     authorized by law, that the defendant make restitution to the 
     Commissioner of Social Security, in any case in which such 
     offense results in--
       ``(A) the Commissioner of Social Security making a benefit 
     payment that should not have been made, or
       ``(B) an individual suffering a financial loss due to the 
     defendant's violation of subsection (a) in his or her 
     capacity as the individual's representative payee appointed 
     pursuant to section 807(i).
       ``(2) Related provisions.--Sections 3612, 3663, and 3664 of 
     title 18, United States Code, shall apply with respect to the 
     issuance and enforcement of orders of restitution under this 
     subsection. In so applying such sections, the Commissioner of 
     Social Security shall be considered the victim.
       ``(3) Stated reasons for not ordering restitution.--If the 
     court does not order restitution, or orders only partial 
     restitution, under this subsection, the court shall state on 
     the record the reasons therefor.
       ``(4) Receipt of restitution payments.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     funds paid to the Commissioner of Social Security as 
     restitution pursuant to a court order shall be deposited as 
     miscellaneous receipts in the general fund of the Treasury.
       ``(B) Payment to the individual.--In the case of funds paid 
     to the Commissioner of Social Security pursuant to paragraph 
     (1)(B), the Commissioner of Social Security shall certify for 
     payment to the individual described in such paragraph an 
     amount equal to the lesser of the amount of the funds so paid 
     or the individual's outstanding financial loss as described 
     in such paragraph, except that such amount may be reduced by 
     any overpayment of benefits owed under this title, title II, 
     or title XVI by the individual.''.
       (c) Amendments to Title XVI.--Section 1632 of the Social 
     Security Act (42 U.S.C. 1383a) is amended--
       (1) by redesignating subsection (b) as subsection (c); and
       (2) by inserting after subsection (a) the following:
       ``(b)(1) Any Federal court, when sentencing a defendant 
     convicted of an offense under subsection (a), may order, in 
     addition to or in lieu of any other penalty authorized by 
     law, that the defendant make restitution to the Commissioner 
     of Social Security, in any case in which such offense results 
     in--
       ``(A) the Commissioner of Social Security making a benefit 
     payment that should not have been made, or
       ``(B) an individual suffering a financial loss due to the 
     defendant's violation of subsection (a) in his or her 
     capacity as the individual's representative payee appointed 
     pursuant to section 1631(a)(2).
       ``(2) Sections 3612, 3663, and 3664 of title 18, United 
     States Code, shall apply with respect to the issuance and 
     enforcement of orders of restitution under this subsection. 
     In so applying such sections, the Commissioner of Social 
     Security shall be considered the victim.
       ``(3) If the court does not order restitution, or orders 
     only partial restitution, under this subsection, the court 
     shall state on the record the reasons therefor.
       ``(4)(A) Except as provided in subparagraph (B), funds paid 
     to the Commissioner of Social Security as restitution 
     pursuant to a court order shall be deposited as miscellaneous 
     receipts in the general fund of the Treasury.
       ``(B) In the case of funds paid to the Commissioner of 
     Social Security pursuant to

[[Page S16190]]

     paragraph (1)(B), the Commissioner of Social Security shall 
     certify for payment to the individual described in such 
     paragraph an amount equal to the lesser of the amount of the 
     funds so paid or the individual's outstanding financial loss 
     as described in such paragraph, except that such amount may 
     be reduced by any overpayment of benefits owed under this 
     title, title II, or title VIII by the individual.''; and
       (3) by amending subsection (c) (as redesignated by 
     paragraph (1)) by striking ``(1) If a person'' and all that 
     follows through ``(2)''.
       (d) Effective Date.--The amendments made by subsections 
     (a), (b), and (c) shall apply with respect to violations 
     occurring on or after the date of enactment of this Act.

     SEC. 210. AUTHORITY FOR CROSS-PROGRAM RECOVERY OF BENEFIT 
                   OVERPAYMENTS.

       (a) In General.--Section 1147 of the Social Security Act 
     (42 U.S.C. 1320b-17) is amended to read as follows:


         ``cross-program recovery of overpayments from benefits

       ``(a) In General.--Subject to subsection (b), whenever the 
     Commissioner of Social Security determines that more than the 
     correct amount of any payment has been made to a person under 
     a program described in subsection (e), the Commissioner of 
     Social Security may recover the amount incorrectly paid by 
     decreasing any amount which is payable to such person under 
     any other program specified in that subsection.
       ``(b) Limitation Applicable to Current Benefits.--
       ``(1) In general.--In carrying out subsection (a), the 
     Commissioner of Social Security may not decrease the monthly 
     amount payable to an individual under a program described in 
     subsection (e) that is paid when regularly due--
       ``(A) in the case of benefits under title II or VIII, by 
     more than 10 percent of the amount of the benefit payable to 
     the person for that month under such title; and
       ``(B) in the case of benefits under title XVI, by an amount 
     greater than the lesser of--
       ``(i) the amount of the benefit payable to the person for 
     that month; or
       ``(ii) an amount equal to 10 percent of the person's income 
     for that month (including such monthly benefit but excluding 
     payments under title II when recovery is also made from title 
     II payments and excluding income excluded pursuant to section 
     1612(b)).
       ``(2) Exception.--Paragraph (1) shall not apply if--
       ``(A) the person or the spouse of the person was involved 
     in willful misrepresentation or concealment of material 
     information in connection with the amount incorrectly paid; 
     or
       ``(B) the person so requests.
       ``(c) No Effect on Eligibility or Benefit Amount Under 
     Title VIII or XVI.--In any case in which the Commissioner of 
     Social Security takes action in accordance with subsection 
     (a) to recover an amount incorrectly paid to any person, 
     neither that person, nor (with respect to the program 
     described in subsection (e)(3)) any individual whose 
     eligibility for benefits under such program or whose amount 
     of such benefits, is determined by considering any part of 
     that person's income, shall, as a result of such action--
       ``(1) become eligible for benefits under the program 
     described in paragraph (2) or (3) of subsection (e); or
       ``(2) if such person or individual is otherwise so 
     eligible, become eligible for increased benefits under such 
     program.
       ``(d) Inapplicability of Prohibition Against Assessment and 
     Legal Process.--Section 207 shall not apply to actions taken 
     under the provisions of this section to decrease amounts 
     payable under titles II and XVI.
       ``(e) Programs Described.--The programs described in this 
     subsection are the following:
       ``(1) The old-age, survivors, and disability insurance 
     benefits program under title II.
       ``(2) The special benefits for certain World War II 
     veterans program under title VIII.
       ``(3) The supplemental security income benefits program 
     under title XVI (including, for purposes of this section, 
     State supplementary payments paid by the Commissioner 
     pursuant to an agreement under section 1616(a) of this Act or 
     section 212(b) of Public Law 93-66).''.
       (b) Conforming Amendments.--
       (1) Section 204(g) of the Social Security Act (42 U.S.C. 
     404(g)) is amended to read as follows:
       ``(g) For provisions relating to the cross-program recovery 
     of overpayments made under programs administered by the 
     Commissioner of Social Security, see section 1147.''.
       (2) Section 808 of the Social Security Act (42 U.S.C. 1008) 
     is amended--
       (A) in subsection (a)(1)--
       (i) by striking subparagraph (B);
       (ii) in the matter preceding subparagraph (A), by striking 
     ``any payment'' and all that follows through ``under this 
     title'' and inserting ``any payment under this title''; and
       (iii) by striking ``; or'' and inserting a period;
       (B) by striking subsection (b) and redesignating 
     subsections (c), (d), and (e) as subsections (b), (c), and 
     (d), respectively; and
       (C) by adding at the end the following:
       ``(e) Cross-Program Recovery of Overpayments.--For 
     provisions relating to the cross-program recovery of 
     overpayments made under programs administered by the 
     Commissioner of Social Security, see section 1147.''.
       (3) Section 1147A of the Social Security Act (42 U.S.C. 
     1320b-18) is repealed.
       (4) Section 1631(b) of the Social Security Act (42 U.S.C. 
     1383(b)) is amended--
       (A) in paragraph (1)(B)--
       (i) by striking ``excluding any other'' and inserting 
     ``excluding payments under title II when recovery is made 
     from title II payments pursuant to section 1147 and 
     excluding''; and
       (ii) by striking ``50 percent of''; and
       (B) by striking paragraph (6) and inserting the following:
       ``(6) For provisions relating to the cross-program recovery 
     of overpayments made under programs administered by the 
     Commissioner of Social Security, see section 1147.''.
       (c) Effective Date.--The amendments and repeal made by this 
     section shall take effect on the date of enactment of this 
     Act, and shall be effective with respect to overpayments 
     under titles II, VIII, and XVI of the Social Security Act 
     that are outstanding on or after such date.

     SEC. 211. PROHIBITION ON PAYMENT OF TITLE II BENEFITS TO 
                   PERSONS NOT AUTHORIZED TO WORK IN THE UNITED 
                   STATES.

       (a) Fully Insured and Currently Insured Individuals.--
     Section 214 (42 U.S.C. 414) is amended--
       (1) in subsection (a), by inserting before the period at 
     the end the following: ``, and who satisfies the criterion 
     specified in subsection (c)'';
       (2) in subsection (b), by inserting before the period at 
     the end the following: ``, and who satisfies the criterion 
     specified in subsection (c)''; and
       (3) by adding at the end the following:
       ``(c) For purposes of subsections (a) and (b), the 
     criterion specified in this subsection is that the 
     individual, if not a United States citizen or national--
       ``(1) has been assigned a social security account number 
     that was, at the time of assignment, or at any later time, 
     consistent with the requirements of subclause (I) or (III) of 
     section 205(c)(2)(B)(i); or
       ``(2) at the time any such quarters of coverage are 
     earned--
       ``(A) is described in subparagraph (B) or (D) of section 
     101(a)(15) of the Immigration and Nationality Act,
       ``(B) is lawfully admitted temporarily to the United States 
     for business (in the case of an individual described in such 
     subparagraph (B)) or the performance as a crewman (in the 
     case of an individual described in such subparagraph (D)), 
     and
       ``(C) the business engaged in or service as a crewman 
     performed is within the scope of the terms of such 
     individual's admission to the United States.''.
       (b) Disability Benefits.--Section 223(a)(1) of the Social 
     Security Act (42 U.S.C. 423(a)(1)) is amended--
       (1) by redesignating subparagraphs (C) and (D) as 
     subparagraphs (D) and (E), respectively; and
       (2) by inserting after subparagraph (B), the following:
       ``(C) if not a United States citizen or national--
       ``(i) has been assigned a social security account number 
     that was, at the time of assignment, or at any later time, 
     consistent with the requirements of subclause (I) or (III) of 
     section 205(c)(2)(B)(i); or
       ``(ii) at the time any quarters of coverage are earned--
       ``(I) is described in subparagraph (B) or (D) of section 
     101(a)(15) of the Immigration and Nationality Act,
       ``(II) is lawfully admitted temporarily to the United 
     States for business (in the case of an individual described 
     in such subparagraph (B)) or the performance as a crewman (in 
     the case of an individual described in such subparagraph 
     (D)), and
       ``(III) the business engaged in or service as a crewman 
     performed is within the scope of the terms of such 
     individual's admission to the United States.''.
       (c) Effective Date.--The amendments made by this section 
     apply to benefit applications based on social security 
     account numbers issued on or after January 1, 2004.

   TITLE III--ATTORNEY REPRESENTATIVE FEE PAYMENT SYSTEM IMPROVEMENTS

     SEC. 301. CAP ON ATTORNEY ASSESSMENTS.

       (a) In General.--Section 206(d)(2)(A) of the Social 
     Security Act (42 U.S.C. 406(d)(2)(A)) is amended--
       (1) by inserting ``, except that the maximum amount of the 
     assessment may not exceed the greater of $75 or the adjusted 
     amount as provided pursuant to the following two sentences'' 
     after ``subparagraph (B)''; and
       (2) by adding at the end the following: ``In the case of 
     any calendar year beginning after the amendments made by 
     section 301 of the Social Security Protection Act of 2003 
     take effect, the dollar amount specified in the preceding 
     sentence (including a previously adjusted amount) shall be 
     adjusted annually under the procedures used to adjust benefit 
     amounts under section 215(i)(2)(A)(ii), except such 
     adjustment shall be based on the higher of $75 or the 
     previously adjusted amount that would have been in effect for 
     December of the preceding year, but for the rounding of such 
     amount pursuant to the following sentence. Any amount so 
     adjusted that is not a multiple of $1 shall be rounded to the 
     next lowest multiple of $1, but in no case less than $75.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply with respect

[[Page S16191]]

     to fees for representation of claimants which are first 
     required to be certified or paid under section 206 of the 
     Social Security Act on or after the first day of the first 
     month that begins after 180 days after the date of the 
     enactment of this Act.

     SEC. 302. TEMPORARY EXTENSION OF ATTORNEY FEE PAYMENT SYSTEM 
                   TO TITLE XVI CLAIMS.

       (a) In General.--Section 1631(d)(2) of the Social Security 
     Act (42 U.S.C. 1383(d)(2)) is amended--
       (1) in subparagraph (A), in the matter preceding clause 
     (i)--
       (A) by striking ``section 206(a)'' and inserting ``section 
     206'';
       (B) by striking ``(other than paragraph (4) thereof)'' and 
     inserting ``(other than subsections (a)(4) and (d) 
     thereof)''; and
       (C) by striking ``paragraph (2) thereof'' and inserting 
     ``such section'';
       (2) in subparagraph (A)(i)--
       (A) by striking ``in subparagraphs (A)(ii)(I) and (C)(i),'' 
     and inserting ``in subparagraphs (A)(ii)(I) and (D)(i) of 
     subsection (a)(2)''; and
       (B) by striking ``and'' at the end;
       (3) by striking subparagraph (A)(ii) and inserting the 
     following:
       ``(ii) by substituting, in subsections (a)(2)(B) and 
     (b)(1)(B)(i), the phrase `paragraph (7)(A) or (8)(A) of 
     section 1631(a) or the requirements of due process of law' 
     for the phrase `subsection (g) or (h) of section 223';
       ``(iii) by substituting, in subsection (a)(2)(C)(i), the 
     phrase `under title II' for the phrase `under title XVI';
       ``(iv) by substituting, in subsection (b)(1)(A), the phrase 
     `pay the amount of such fee' for the phrase `certify the 
     amount of such fee for payment' and by striking, in 
     subsection (b)(1)(A), the phrase `or certified for payment'; 
     and
       ``(v) by substituting, in subsection (b)(1)(B)(ii), the 
     phrase `deemed to be such amounts as determined before any 
     applicable reduction under section 1631(g), and reduced by 
     the amount of any reduction in benefits under this title or 
     title II made pursuant to section 1127(a)' for the phrase 
     `determined before any applicable reduction under section 
     1127(a))'.''; and
       (4) by redesignating subparagraph (B) as subparagraph (D) 
     and inserting after subparagraph (A) the following:
       ``(B) Subject to subparagraph (C), if the claimant is 
     determined to be entitled to past-due benefits under this 
     title and the person representing the claimant is an 
     attorney, the Commissioner of Social Security shall pay out 
     of such past-due benefits to such attorney an amount equal to 
     the lesser of--
       ``(i) so much of the maximum fee as does not exceed 25 
     percent of such past-due benefits (as determined before any 
     applicable reduction under section 1631(g) and reduced by the 
     amount of any reduction in benefits under this title or title 
     II pursuant to section 1127(a)), or
       ``(ii) the amount of past-due benefits available after any 
     applicable reductions under sections 1631(g) and 1127(a).
       ``(C)(i) Whenever a fee for services is required to be paid 
     to an attorney from a claimant's past-due benefits pursuant 
     to subparagraph (B), the Commissioner shall impose on the 
     attorney an assessment calculated in accordance with clause 
     (ii).
       ``(ii)(I) The amount of an assessment under clause (i) 
     shall be equal to the product obtained by multiplying the 
     amount of the representative's fee that would be required to 
     be paid by subparagraph (B) before the application of this 
     subparagraph, by the percentage specified in subclause (II), 
     except that the maximum amount of the assessment may not 
     exceed $75. In the case of any calendar year beginning after 
     the amendments made by section 302 of the Social Security 
     Protection Act of 2003 take effect, the dollar amount 
     specified in the preceding sentence (including a previously 
     adjusted amount) shall be adjusted annually under the 
     procedures used to adjust benefit amounts under section 
     215(i)(2)(A)(ii), except such adjustment shall be based on 
     the higher of $75 or the previously adjusted amount that 
     would have been in effect for December of the preceding year, 
     but for the rounding of such amount pursuant to the following 
     sentence. Any amount so adjusted that is not a multiple of $1 
     shall be rounded to the next lowest multiple of $1, but in no 
     case less than $75.
       ``(II) The percentage specified in this subclause is such 
     percentage rate as the Commissioner determines is necessary 
     in order to achieve full recovery of the costs of determining 
     and approving fees to attorneys from the past-due benefits of 
     claimants, but not in excess of 6.3 percent.
       ``(iii) The Commissioner may collect the assessment imposed 
     on an attorney under clause (i) by offset from the amount of 
     the fee otherwise required by subparagraph (B) to be paid to 
     the attorney from a claimant's past-due benefits.
       ``(iv) An attorney subject to an assessment under clause 
     (i) may not, directly or indirectly, request or otherwise 
     obtain reimbursement for such assessment from the claimant 
     whose claim gave rise to the assessment.
       ``(v) Assessments on attorneys collected under this 
     subparagraph shall be deposited as miscellaneous receipts in 
     the general fund of the Treasury.
       ``(vi) The assessments authorized under this subparagraph 
     shall be collected and available for obligation only to the 
     extent and in the amount provided in advance in 
     appropriations Acts. Amounts so appropriated are authorized 
     to remain available until expended, for administrative 
     expenses in carrying out this title and related laws.''.
       (b) Conforming Amendments.--Section 1631(a) of the Social 
     Security Act (42 U.S.C. 1383(a)) is amended--
       (1) in paragraph (2)(F)(i)(II), by inserting ``and payment 
     of attorney fees under subsection (d)(2)(B)'' after 
     ``subsection (g)''; and
       (2) in paragraph (10)(A)--
       (A) in the matter preceding clause (i), by inserting ``and 
     payment of attorney fees under subsection (d)(2)(B)'' after 
     ``subsection (g)''; and
       (B) in the matter following clause (ii), by inserting ``and 
     payment of attorney fees under subsection (d)(2)(B)'' after 
     ``State''.
       (c) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply with respect to fees for representation of claimants 
     which are first required to be paid under section 1631(d)(2) 
     of the Social Security Act on or after the date of the 
     submission by the Commissioner of Social Security to each 
     House of Congress pursuant to section 303(d) of this Act of 
     written notice of completion of full implementation of the 
     requirements for operation of the demonstration project under 
     section 303 of this Act.
       (2) Sunset.--Such amendments shall not apply with respect 
     to fees for representation of claimants in the case of any 
     claim for benefits with respect to which the agreement for 
     representation is entered into after 5 years after the date 
     described in paragraph (1).

     SEC. 303. NATIONWIDE DEMONSTRATION PROJECT PROVIDING FOR 
                   EXTENSION OF FEE WITHHOLDING PROCEDURES TO NON-
                   ATTORNEY REPRESENTATIVES.

       (a) In General.--The Commissioner of Social Security 
     (hereafter in this section referred to as the 
     ``Commissioner'') shall develop and carry out a nationwide 
     demonstration project under this section with respect to 
     agents and other persons, other than attorneys, who represent 
     claimants under titles II and XVI of the Social Security Act 
     before the Commissioner. The demonstration project shall be 
     designed to determine the potential results of extending to 
     such representatives the fee withholding procedures and 
     assessment procedures that apply under sections 206 and 
     section 1631(d)(2) of such Act to attorneys seeking direct 
     payment out of past due benefits under such titles and shall 
     include an analysis of the effect of such extension on 
     claimants and program administration.
       (b) Standards for Inclusion in Demonstration Project.--Fee-
     withholding procedures may be extended under the 
     demonstration project carried out pursuant to subsection (a) 
     to any non-attorney representative only if such 
     representative meets at least the following prerequisites:
       (1) The representative has been awarded a bachelor's degree 
     from an accredited institution of higher education, or has 
     been determined by the Commissioner to have equivalent 
     qualifications derived from training and work experience.
       (2) The representative has passed an examination, written 
     and administered by the Commissioner, which tests knowledge 
     of the relevant provisions of the Social Security Act and the 
     most recent developments in agency and court decisions 
     affecting titles II and XVI of such Act.
       (3) The representative has secured professional liability 
     insurance, or equivalent insurance, which the Commissioner 
     has determined to be adequate to protect claimants in the 
     event of malpractice by the representative.
       (4) The representative has undergone a criminal background 
     check to ensure the representative's fitness to practice 
     before the Commissioner.
       (5) The representative demonstrates ongoing completion of 
     qualified courses of continuing education, including 
     education regarding ethics and professional conduct, which 
     are designed to enhance professional knowledge in matters 
     related to entitlement to, or eligibility for, benefits based 
     on disability under titles II and XVI of such Act. Such 
     continuing education, and the instructors providing such 
     education, shall meet such standards as the Commissioner may 
     prescribe.
       (c) Assessment of Fees.--
       (1) In general.--The Commissioner may assess 
     representatives reasonable fees to cover the cost to the 
     Social Security Administration of administering the 
     prerequisites described in subsection (b).
       (2) Disposition of fees.--Fees collected under paragraph 
     (1) shall be credited to the Federal Old-Age and Survivors 
     Insurance Trust Fund and the Federal Disability Insurance 
     Trust Fund, or deposited as miscellaneous receipts in the 
     general fund of the Treasury, based on such allocations as 
     the Commissioner of Social Security determines appropriate.
       (3) Authorization of appropriations.--The fees authorized 
     under this subparagraph shall be collected and available for 
     obligation only to the extent and in the amount provided in 
     advance in appropriations Acts. Amounts so appropriated are 
     authorized to remain available until expended for 
     administering the prerequisites described in subsection (b).
       (d) Notice to Congress and Applicability of Fee Withholding 
     Procedures.--Not later than 1 year after the date of 
     enactment of this Act, the Commissioner shall complete such 
     actions as are necessary to fully implement the requirements 
     for full operation of

[[Page S16192]]

     the demonstration project and shall submit to each House of 
     Congress a written notice of the completion of such actions. 
     The applicability under this section to non-attorney 
     representatives of the fee withholding procedures and 
     assessment procedures under sections 206 and 1631(d)(2) of 
     the Social Security Act shall be effective with respect to 
     fees for representation of claimants in the case of claims 
     for benefits with respect to which the agreement for 
     representation is entered into by such non-attorney 
     representatives during the period beginning with the date of 
     the submission of such notice by the Commissioner to Congress 
     and ending with the termination date of the demonstration 
     project.
       (e) Reports by the Commissioner; Termination.--
       (1) Interim reports.--On or before the date which is 1 year 
     after the date of enactment of this Act, and annually 
     thereafter, the Commissioner shall transmit to the Committee 
     on Ways and Means of the House of Representatives and to the 
     Committee on Finance of the Senate an annual interim report 
     on the progress of the demonstration project carried out 
     under this section, together with any related data and 
     materials that the Commissioner may consider appropriate.
       (2) Termination date and final report.--The termination 
     date of the demonstration project under this section is the 
     date which is 5 years after the date of the submission of the 
     notice by the Commissioner to each House of Congress pursuant 
     to subsection (d). The authority under the preceding 
     provisions of this section shall not apply in the case of 
     claims for benefits with respect to which the agreement for 
     representation is entered into after the termination date. 
     Not later than 90 days after the termination date, the 
     Commissioner shall submit to the Committee on Ways and Means 
     of the House of Representatives and to the Committee on 
     Finance of the Senate a final report with respect to the 
     demonstration project.

     SEC. 304. GAO STUDY REGARDING THE FEE PAYMENT PROCESS FOR 
                   CLAIMANT REPRESENTATIVES.

       (a) Study.--
       (1) In general.--The Comptroller General of the United 
     States shall study and evaluate the appointment and payment 
     of claimant representatives appearing before the Commissioner 
     of Social Security in connection with benefit claims under 
     titles II and XVI of the Social Security Act (42 U.S.C. 401 
     et seq., 1381 et seq.) in each of the following groups:
       (A) Attorney claimant representatives who elect fee 
     withholding under section 206 or 1631(d)(2) of such Act.
       (B) Attorney claimant representatives who do not elect such 
     fee withholding.
       (C) Non-attorney claimant representatives who are eligible 
     for, and elect, such fee withholding.
       (D) Non-attorney claimant representatives who are eligible 
     for, but do not elect, such fee withholding.
       (E) Non-attorney claimant representatives who are not 
     eligible for such fee withholding.
       (2) Matters to be studied.--In conducting the study under 
     this subsection, the Comptroller General shall, for each of 
     group of claimant representatives described in paragraph 
     (1)--
       (A) conduct a survey of the relevant characteristics of 
     such claimant representatives including--
       (i) qualifications and experience;
       (ii) the type of employment of such claimant 
     representatives, such as with an advocacy group, State or 
     local government, or insurance or other company;
       (iii) geographical distribution between urban and rural 
     areas;
       (iv) the nature of claimants' cases, such as whether the 
     cases are for disability insurance benefits only, 
     supplemental security income benefits only, or concurrent 
     benefits;
       (v) the relationship of such claimant representatives to 
     claimants, such as whether the claimant is a friend, family 
     member, or client of the claimant representative; and
       (vi) the amount of compensation (if any) paid to the 
     claimant representatives and the method of payment of such 
     compensation;
       (B) assess the quality and effectiveness of the services 
     provided by such claimant representatives, including a 
     comparison of claimant satisfaction or complaints and benefit 
     outcomes, adjusted for differences in claimant 
     representatives' caseload, claimants' diagnostic group, level 
     of decision, and other relevant factors;
       (C) assess the interactions between fee withholding under 
     sections 206 and 1631(d)(2) of such Act (including under the 
     amendments made by section 302 of this Act and under the 
     demonstration project conducted under section 303 of this 
     Act), the windfall offset under section 1127 of such Act, and 
     interim assistance reimbursements under section 1631(g) of 
     such Act;
       (D) assess the potential results of making permanent the 
     fee withholding procedures under sections 206 and 1631(d)(2) 
     of such Act under the amendments made by section 302 of this 
     Act and under the demonstration project conducted under 
     section 303 of this Act with respect to program 
     administration and claimant outcomes, and assess whether the 
     rules and procedures employed by the Commissioner of Social 
     Security to evaluate the qualifications and performance of 
     claimant representatives should be revised prior to making 
     such procedures permanent; and
       (E) make such recommendations for administrative and 
     legislative changes as the Comptroller General of the United 
     States considers necessary or appropriate.
       (3) Consultation required.--The Comptroller General of the 
     United States shall consult with beneficiaries under title II 
     of such Act, beneficiaries under title XVI of such Act, 
     claimant representatives of beneficiaries under such titles, 
     and other interested parties, in conducting the study and 
     evaluation required under paragraph (1).
       (b) Report.--Not later than 3 years after the date of the 
     submission by the Commissioner of Social Security to each 
     House of Congress pursuant to section 303(d) of this Act of 
     written notice of completion of full implementation of the 
     requirements for operation of the demonstration project under 
     section 303 of this Act, the Comptroller General of the 
     United States shall submit to the Committee on Ways and Means 
     of the House of Representatives and the Committee on Finance 
     of the Senate a report on the results of the study and 
     evaluation conducted pursuant to subsection (a).

            TITLE IV--MISCELLANEOUS AND TECHNICAL AMENDMENTS

    Subtitle A--Amendments Relating to the Ticket to Work and Work 
                   Incentives Improvement Act of 1999

     SEC. 401. APPLICATION OF DEMONSTRATION AUTHORITY SUNSET DATE 
                   TO NEW PROJECTS.

       Section 234 of the Social Security Act (42 U.S.C. 434) is 
     amended--
       (1) in the first sentence of subsection (c), by striking 
     ``conducted under subsection (a)'' and inserting ``initiated 
     under subsection (a) on or before December 17, 2005''; and
       (2) in subsection (d)(2), by striking the first sentence 
     and inserting the following: ``The authority to initiate 
     projects under the preceding provisions of this section shall 
     terminate on December 18, 2005.''.

     SEC. 402. EXPANSION OF WAIVER AUTHORITY AVAILABLE IN 
                   CONNECTION WITH DEMONSTRATION PROJECTS 
                   PROVIDING FOR REDUCTIONS IN DISABILITY 
                   INSURANCE BENEFITS BASED ON EARNINGS.

       Section 302(c) of the Ticket to Work and Work Incentives 
     Improvement Act of 1999 (42 U.S.C. 434 note) is amended by 
     striking ``(42 U.S.C. 401 et seq.),'' and inserting ``(42 
     U.S.C. 401 et seq.) and the requirements of section 1148 of 
     such Act (42 U.S.C. 1320b-19) as they relate to the program 
     established under title II of such Act,''.

     SEC. 403. FUNDING OF DEMONSTRATION PROJECTS PROVIDING FOR 
                   REDUCTIONS IN DISABILITY INSURANCE BENEFITS 
                   BASED ON EARNINGS.

       Section 302(f) of the Ticket to Work and Work Incentives 
     Improvement Act of 1999 (42 U.S.C. 434 note) is amended to 
     read as follows:
       ``(f) Expenditures.--Administrative expenses for 
     demonstration projects under this section shall be paid from 
     funds available for the administration of title II or XVIII 
     of the Social Security Act, as appropriate. Benefits payable 
     to or on behalf of individuals by reason of participation in 
     projects under this section shall be made from the Federal 
     Disability Insurance Trust Fund and the Federal Old-Age and 
     Survivors Insurance Trust Fund, as determined appropriate by 
     the Commissioner of Social Security, and from the Federal 
     Hospital Insurance Trust Fund and the Federal Supplementary 
     Medical Insurance Trust Fund, as determined appropriate by 
     the Secretary of Health and Human Services, from funds 
     available for benefits under such title II or XVIII.''.

     SEC. 404. AVAILABILITY OF FEDERAL AND STATE WORK INCENTIVE 
                   SERVICES TO ADDITIONAL INDIVIDUALS.

       (a) Federal Work Incentives Outreach Program.--
       (1) In general.--Section 1149(c)(2) of the Social Security 
     Act (42 U.S.C. 1320b-20(c)(2)) is amended to read as follows:
       ``(2) Disabled beneficiary.--The term `disabled 
     beneficiary' means an individual--
       ``(A) who is a disabled beneficiary as defined in section 
     1148(k)(2) of this Act;
       ``(B) who is receiving a cash payment described in section 
     1616(a) of this Act or a supplementary payment described in 
     section 212(a)(3) of Public Law 93-66 (without regard to 
     whether such payment is paid by the Commissioner pursuant to 
     an agreement under section 1616(a) of this Act or under 
     section 212(b) of Public Law 93-66);
       ``(C) who, pursuant to section 1619(b) of this Act, is 
     considered to be receiving benefits under title XVI of this 
     Act; or
       ``(D) who is entitled to benefits under part A of title 
     XVIII of this Act by reason of the penultimate sentence of 
     section 226(b) of this Act.''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply with respect to grants, cooperative agreements, 
     or contracts entered into on or after the date of the 
     enactment of this Act.
       (b) State Grants for Work Incentives Assistance.--
       (1) Definition of disabled beneficiary.--Section 1150(g)(2) 
     of such Act (42 U.S.C. 1320b-21(g)(2)) is amended to read as 
     follows:
       ``(2) Disabled beneficiary.--The term `disabled 
     beneficiary' means an individual--
       ``(A) who is a disabled beneficiary as defined in section 
     1148(k)(2) of this Act;
       ``(B) who is receiving a cash payment described in section 
     1616(a) of this Act or a supplementary payment described in 
     section 212(a)(3) of Public Law 93-66 (without regard to 
     whether such payment is paid by the Commissioner pursuant to 
     an agreement under

[[Page S16193]]

     section 1616(a) of this Act or under section 212(b) of Public 
     Law 93-66);
       ``(C) who, pursuant to section 1619(b) of this Act, is 
     considered to be receiving benefits under title XVI of this 
     Act; or
       ``(D) who is entitled to benefits under part A of title 
     XVIII of this Act by reason of the penultimate sentence of 
     section 226(b) of this Act.''.
       (2) Advocacy or other services needed to maintain gainful 
     employment.--Section 1150(b)(2) of such Act (42 U.S.C. 1320b-
     21(b)(2)) is amended by striking ``secure or regain'' and 
     inserting ``secure, maintain, or regain''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply with respect to payments provided after the date 
     of the enactment of this Act.

     SEC. 405. TECHNICAL AMENDMENT CLARIFYING TREATMENT FOR 
                   CERTAIN PURPOSES OF INDIVIDUAL WORK PLANS UNDER 
                   THE TICKET TO WORK AND SELF-SUFFICIENCY 
                   PROGRAM.

       (a) In General.--Section 1148(g)(1) of the Social Security 
     Act (42 U.S.C. 1320b-19(g)(1)) is amended by adding at the 
     end, after and below subparagraph (E), the following:
     ``An individual work plan established pursuant to this 
     subsection shall be treated, for purposes of section 
     51(d)(6)(B)(i) of the Internal Revenue Code of 1986, as an 
     individualized written plan for employment under a State plan 
     for vocational rehabilitation services approved under the 
     Rehabilitation Act of 1973.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect as if included in section 505 of the Ticket 
     to Work and Work Incentives Improvement Act of 1999 (Public 
     Law 106-170; 113 Stat. 1921).

     SEC. 406. GAO STUDY REGARDING THE TICKET TO WORK AND SELF-
                   SUFFICIENCY PROGRAM.

       (a) GAO Report.--Not later than 12 months after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall submit a report to Congress regarding the Ticket 
     to Work and Self-Sufficiency Program established under 
     section 1148 of the Social Security Act (42 U.S.C. 1320b-19) 
     that--
       (1) examines the annual and interim reports issued by 
     States, the Ticket to Work and Work Incentives Advisory Panel 
     established under section 101(f) of the Ticket to Work and 
     Work Incentives Improvement Act of 1999 (42 U.S.C. 1320b-19 
     note), and the Commissioner of Social Security regarding such 
     program;
       (2) assesses the effectiveness of the activities carried 
     out under such program; and
       (3) recommends such legislative or administrative changes 
     as the Comptroller General determines are appropriate to 
     improve the effectiveness of such program.

     SEC. 407. REAUTHORIZATION OF APPROPRIATIONS FOR CERTAIN WORK 
                   INCENTIVES PROGRAMS.

       (a) Benefits Planning, Assistance, and Outreach.--Section 
     1149(d) of the Social Security Act (42 U.S.C. 1320b-20(d)) is 
     amended by striking ``2004'' and inserting ``2009''.
       (b) Protection and Advocacy.--Section 1150(h) of the Social 
     Security Act (42 U.S.C. 1320b-21(h)) is amended by striking 
     ``2004'' and inserting ``2009''.

                  Subtitle B--Miscellaneous Amendments

     SEC. 411. ELIMINATION OF TRANSCRIPT REQUIREMENT IN REMAND 
                   CASES FULLY FAVORABLE TO THE CLAIMANT.

       (a) In General.--Section 205(g) of the Social Security Act 
     (42 U.S.C. 405(g)) is amended in the sixth sentence by 
     striking ``and a transcript'' and inserting ``and, in any 
     case in which the Commissioner has not made a decision fully 
     favorable to the individual, a transcript''.
       (b) Effective Date.--The amendment made by this section 
     shall apply with respect to final determinations issued (upon 
     remand) on or after the date of the enactment of this Act.

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

       (a) In General.--Section 202(n) of the Social Security Act 
     (42 U.S.C. 402(n)) is amended--
       (1) in paragraph (1), by striking ``section 241(a) (other 
     than under paragraph (1)(C) or (1)(E) thereof) of the 
     Immigration and Nationality Act'' and inserting ``section 
     237(a) of the Immigration and Nationality Act (other than 
     under paragraph (1)(C) of such section) or under section 
     212(a)(6)(A) of such Act'';
       (2) in paragraph (2), by striking ``section 241(a) of the 
     Immigration and Nationality Act (other than under paragraph 
     (1)(C) or (1)(E) thereof)'' and inserting ``section 237(a) of 
     the Immigration and Nationality Act (other than under 
     paragraph (1)(C) of such section) or under section 
     212(a)(6)(A) of such Act'';
       (3) in paragraph (3), by striking ``paragraph (19) of 
     section 241(a) of the Immigration and Nationality Act 
     (relating to persecution of others on account of race, 
     religion, national origin, or political opinion, under the 
     direction of or in association with the Nazi government of 
     Germany or its allies) shall be considered to have been 
     deported under such paragraph (19)'' and inserting 
     ``paragraph (4)(D) of section 241(a) of the Immigration and 
     Nationality Act (relating to participating in Nazi 
     persecutions or genocide) shall be considered to have been 
     deported under such paragraph (4)(D)''; and
       (4) in paragraph (3) (as amended by paragraph (3) of this 
     subsection), by striking ``241(a)'' and inserting ``237(a)''.
       (b) Technical Corrections.--
       (1) Terminology regarding removal from the united states.--
     Section 202(n) of the Social Security Act (42 U.S.C. 402(n)) 
     (as amended by subsection (a)) is amended further--
       (A) by striking ``deportation'' each place it appears and 
     inserting ``removal'';
       (B) by striking ``deported'' each place it appears and 
     inserting ``removed''; and
       (C) in the heading, by striking ``Deportation'' and 
     inserting ``Removal''.
       (2) References to the secretary of homeland security.--
     Section 202(n) of the Social Security Act (42 U.S.C. 402(n)) 
     (as amended by subsection (a) and paragraph (1)) is amended 
     further by inserting ``or the Secretary of Homeland 
     Security'' after ``the Attorney General'' each place it 
     appears.
       (c) Effective Dates.--
       (1) In general.--The amendment made by--
       (A) subsection (a)(1) shall apply to individuals with 
     respect to whom the Commissioner of Social Security receives 
     a removal notice after the date of the enactment of this Act;
       (B) subsection (a)(2) shall apply with respect to 
     notifications of removals received by the Commissioner of 
     Social Security after the date of enactment of this Act; and
       (C) subsection (a)(3) shall be effective as if enacted on 
     March 1, 1991.
       (2) Subsequent correction of cross-reference and 
     terminology.--The amendments made by subsections (a)(4) and 
     (b)(1) shall be effective as if enacted on April 1, 1997.
       (3) References to the secretary of homeland security.--The 
     amendment made by subsection (b)(2) shall be effective as if 
     enacted on March 1, 2003.

     SEC. 413. REINSTATEMENT OF CERTAIN REPORTING REQUIREMENTS.

       Section 3003(a)(1) of the Federal Reports Elimination and 
     Sunset Act of 1995 (31 U.S.C. 1113 note) shall not apply to 
     any report required to be submitted under any of the 
     following provisions of law:
       (1)(A) Section 201(c)(2) of the Social Security Act (42 
     U.S.C. 401(c)(2)).
       (B) Section 1817(b)(2) of the Social Security Act (42 
     U.S.C. 1395i(b)(2)).
       (C) Section 1841(b)(2) of the Social Security Act (42 
     U.S.C. 1395t(b)(2)).
       (2)(A) Section 221(c)(3)(C) of the Social Security Act (42 
     U.S.C. 421(c)(3)(C)).
       (B) Section 221(i)(3) of the Social Security Act (42 U.S.C. 
     421(i)(3)).

     SEC. 414. CLARIFICATION OF DEFINITIONS REGARDING CERTAIN 
                   SURVIVOR BENEFITS.

       (a) Widows.--Section 216(c) of the Social Security Act (42 
     U.S.C. 416(c)) is amended--
       (1) by redesignating subclauses (A) through (C) of clause 
     (6) as subclauses (i) through (iii), respectively;
       (2) by redesignating clauses (1) through (6) as clauses (A) 
     through (F), respectively;
       (3) in clause (E) (as redesignated), by inserting ``except 
     as provided in paragraph (2),'' before ``she was married'';
       (4) by inserting ``(1)'' after ``(c)''; and
       (5) by adding at the end the following:
       ``(2) The requirements of paragraph (1)(E) in connection 
     with the surviving wife of an individual shall be treated as 
     satisfied if--
       ``(A) the individual had been married prior to the 
     individual's marriage to the surviving wife,
       ``(B) the prior wife was institutionalized during the 
     individual's marriage to the prior wife due to mental 
     incompetence or similar incapacity,
       ``(C) during the period of the prior wife's 
     institutionalization, the individual would have divorced the 
     prior wife and married the surviving wife, but the individual 
     did not do so because such divorce would have been unlawful, 
     by reason of the prior wife's institutionalization, under the 
     laws of the State in which the individual was domiciled at 
     the time (as determined based on evidence satisfactory to the 
     Commissioner of Social Security),
       ``(D) the prior wife continued to remain institutionalized 
     up to the time of her death, and
       ``(E) the individual married the surviving wife within 60 
     days after the prior wife's death.''.
       (b) Widowers.--Section 216(g) of such Act (42 U.S.C. 
     416(g)) is amended--
       (1) by redesignating subclauses (A) through (C) of clause 
     (6) as subclauses (i) through (iii), respectively;
       (2) by redesignating clauses (1) through (6) as clauses (A) 
     through (F), respectively;
       (3) in clause (E) (as redesignated), by inserting ``except 
     as provided in paragraph (2),'' before ``he was married'';
       (4) by inserting ``(1)'' after ``(g)''; and
       (5) by adding at the end the following:
       ``(2) The requirements of paragraph (1)(E) in connection 
     with the surviving husband of an individual shall be treated 
     as satisfied if--
       ``(A) the individual had been married prior to the 
     individual's marriage to the surviving husband,
       ``(B) the prior husband was institutionalized during the 
     individual's marriage to the prior husband due to mental 
     incompetence or similar incapacity,
       ``(C) during the period of the prior husband's 
     institutionalization, the individual would have divorced the 
     prior husband and married the surviving husband, but the 
     individual did not do so because such divorce would have been 
     unlawful, by reason of the prior husband's 
     institutionalization, under the laws of the State in which 
     the individual was domiciled at the time (as determined based 
     on evidence satisfactory to the Commissioner of Social 
     Security),

[[Page S16194]]

       ``(D) the prior husband continued to remain 
     institutionalized up to the time of his death, and
       ``(E) the individual married the surviving husband within 
     60 days after the prior husband's death.''.
       (c) Conforming Amendment.--Section 216(k) of such Act (42 
     U.S.C. 416(k)) is amended by striking ``clause (5) of 
     subsection (c) or clause (5) of subsection (g)'' and 
     inserting ``clause (E) of subsection (c)(1) or clause (E) of 
     subsection (g)(1)''.
       (d) Effective Date.--The amendments made by this section 
     shall be effective with respect to applications for benefits 
     under title II of the Social Security Act filed during months 
     ending after the date of the enactment of this Act.

     SEC. 415. CLARIFICATION RESPECTING THE FICA AND SECA TAX 
                   EXEMPTIONS FOR AN INDIVIDUAL WHOSE EARNINGS ARE 
                   SUBJECT TO THE LAWS OF A TOTALIZATION AGREEMENT 
                   PARTNER.

       Sections 1401(c), 3101(c), and 3111(c) of the Internal 
     Revenue Code of 1986 are each amended by striking ``to taxes 
     or contributions for similar purposes under'' and inserting 
     ``exclusively to the laws applicable to''.

     SEC. 416. COVERAGE UNDER DIVIDED RETIREMENT SYSTEM FOR PUBLIC 
                   EMPLOYEES IN KENTUCKY AND LOUISIANA.

       (a) In General.--Section 218(d)(6)(C) of the Social 
     Security Act (42 U.S.C. 418(d)(6)(C)) is amended by inserting 
     ``Kentucky, Louisiana,'' after ``Illinois,''.
       (b) Effective Date.--The amendment made by subsection (a) 
     takes effect on January 1, 2003.

     SEC. 417. COMPENSATION FOR THE SOCIAL SECURITY ADVISORY 
                   BOARD.

       (a) In General.--Subsection (f) of section 703 of the 
     Social Security Act (42 U.S.C. 903(f)) is amended to read as 
     follows:

                 ``Compensation, Expenses, and Per Diem

       ``(f) A member of the Board shall, for each day (including 
     traveltime) during which the member is attending meetings or 
     conferences of the Board or otherwise engaged in the business 
     of the Board, be compensated at the daily rate of basic pay 
     for level IV of the Executive Schedule. While serving on 
     business of the Board away from their homes or regular places 
     of business, members may be allowed travel expenses, 
     including per diem in lieu of subsistence, as authorized by 
     section 5703 of title 5, United States Code, for persons in 
     the Government employed intermittently.''.
       (b) Effective Date.--The amendment made by this section 
     shall be effective as of January 1, 2003.

     SEC. 418. 60-MONTH PERIOD OF EMPLOYMENT REQUIREMENT FOR 
                   APPLICATION OF GOVERNMENT PENSION OFFSET 
                   EXEMPTION.

       (a) In General.--Section 202(k) of the Social Security Act 
     (42 U.S.C. 402(k)) is amended by adding at the end the 
     following:
       ``(5)(A) The amount of a monthly insurance benefit of any 
     individual for each month under subsection (b), (c), (e), 
     (f), or (g) (as determined after application of the 
     provisions of subsection (q) and the preceding provisions of 
     this subsection) shall be reduced (but not below zero) by an 
     amount equal to two-thirds of the amount of any monthly 
     periodic benefit payable to such individual for such month 
     which is based upon such individual's earnings while in the 
     service of the Federal Government or any State (or political 
     subdivision thereof, as defined in section 218(b)(2)) if, 
     during any portion of the last 60 months of such service 
     ending with the last day such individual was employed by such 
     entity--
       ``(i) such service did not constitute `employment' as 
     defined in section 210, or
       ``(ii) such service was being performed while in the 
     service of the Federal Government, and constituted 
     `employment' as so defined solely by reason of--
       ``(I) clause (ii) or (iii) of subparagraph (G) of section 
     210(a)(5), where the lump-sum payment described in such 
     clause (ii) or the cessation of coverage described in such 
     clause (iii) (whichever is applicable) was received or 
     occurred on or after January 1, 1988, or
       ``(II) an election to become subject to the Federal 
     Employees' Retirement System provided in chapter 84 of title 
     5, United States Code, or the Foreign Service Pension System 
     provided in subchapter II of chapter 8 of title I of the 
     Foreign Service Act of 1980 made pursuant to law after 
     December 31, 1987,
     unless subparagraph (B) applies.
     The amount of the reduction in any benefit under this 
     subparagraph, if not a multiple of $0.10, shall be rounded to 
     the next higher multiple of $0.10.
       ``(B)(i) Subparagraph (A)(i) shall not apply with respect 
     to monthly periodic benefits based wholly on service as a 
     member of a uniformed service (as defined in section 210(m)).
       ``(ii) Subparagraph (A)(ii) shall not apply with respect to 
     monthly periodic benefits based in whole or in part on 
     service which constituted `employment' as defined in section 
     210 if such service was performed for at least 60 months in 
     the aggregate during the period beginning January 1, 1988, 
     and ending with the close of the first calendar month as of 
     the end of which such individual is eligible for benefits 
     under this subsection and has made a valid application for 
     such benefits.
       ``(C) For purposes of this paragraph, any periodic benefit 
     which otherwise meets the requirements of subparagraph (A), 
     but which is paid on other than a monthly basis, shall be 
     allocated on a basis equivalent to a monthly benefit (as 
     determined by the Commissioner of Social Security) and such 
     equivalent monthly benefit shall constitute a monthly 
     periodic benefit for purposes of subparagraph (A). For 
     purposes of this subparagraph, the term `periodic benefit' 
     includes a benefit payable in a lump sum if it is a 
     commutation of, or a substitute for, periodic payments.''.
       (b) Conforming Amendments.--
       (1) Wife's insurance benefits.--Section 202(b) of the 
     Social Security Act (42 U.S.C. 402(b)) is amended--
       (A) in paragraph (2), by striking ``subsection (q) and 
     paragraph (4) of this subsection'' and inserting 
     ``subsections (k)(5) and (q)''; and
       (B) by striking paragraph (4) and redesignating paragraph 
     (5) as paragraph (4).
       (2) Husband's insurance benefits.--Section 202(c) of the 
     Social Security Act (42 U.S.C. 402(c)) is amended--
       (A) by striking paragraph (2) and redesignating paragraphs 
     (3) through (5) as paragraphs (2) through (4), respectively; 
     and
       (B) in paragraph (2) as so redesignated, by striking 
     ``subsection (q) and paragraph (2) of this subsection'' and 
     inserting ``subsections (k)(5) and (q)''.
       (3) Widow's insurance benefits.--Section 202(e) of the 
     Social Security Act (42 U.S.C. 402(e)) is amended--
       (A) in paragraph (2)(A), by striking ``subsection (q), 
     paragraph (7) of this subsection,'' and inserting 
     ``subsection (k)(5), subsection (q),''; and
       (B) by striking paragraph (7) and redesignating paragraphs 
     (8) and (9) as paragraphs (7) and (8), respectively.
       (4) Widower's insurance benefits.--
       (A) In general.--Section 202(f) of the Social Security Act 
     (42 U.S.C. 402(f)) is amended--
       (i) by striking paragraph (2) and redesignating paragraphs 
     (3) through (9) as paragraphs (2) through (8), respectively; 
     and
       (ii) in paragraph (2) as so redesignated, by striking 
     ``subsection (q), paragraph (2) of this subsection,'' and 
     inserting ``subsection (k)(5), subsection (q),''.
       (B) Conforming amendments.--
       (i) Section 202(f)(1)(B) of the Social Security Act (42 
     U.S.C. 402(f)(1)(B)) is amended by striking ``paragraph (5)'' 
     and inserting ``paragraph (4)''.
       (ii) Section 202(f)(1)(F) of the Social Security Act (42 
     U.S.C. 402(f)(1)(F)) is amended by striking ``paragraph (6)'' 
     and ``paragraph (5)'' (in clauses (i) and (ii)) and inserting 
     ``paragraph (5)'' and ``paragraph (4)'', respectively.
       (iii) Section 202(f)(5)(A)(ii) of the Social Security Act 
     (as redesignated by subparagraph (A)(i)) is amended by 
     striking ``paragraph (5)'' and inserting ``paragraph (4)''.
       (iv) Section 202(k)(2)(B) of the Social Security Act (42 
     U.S.C. 402(k)(2)(B)) is amended by striking ``or (f)(4)'' 
     each place it appears and inserting ``or (f)(3)''.
       (v) Section 202(k)(3)(A) of the Social Security Act (42 
     U.S.C. 402(k)(3)(A)) is amended by striking ``or (f)(3)'' and 
     inserting ``or (f)(2)''.
       (vi) Section 202(k)(3)(B) of the Social Security Act (42 
     U.S.C. 402(k)(3)(B)) is amended by striking ``or (f)(4)'' and 
     inserting ``or (f)(3)''.
       (vii) Section 226(e)(1)(A)(i) of the Social Security Act 
     (42 U.S.C. 426(e)(1)(A)(i)) is amended by striking ``and 
     202(f)(5)'' and inserting ``and 202(f)(4)''.
       (5) Mother's and father's insurance benefits.--Section 
     202(g) of the Social Security Act (42 U.S.C. 402(g)) is 
     amended--
       (A) in paragraph (2), by striking ``Except as provided in 
     paragraph (4) of this subsection, such'' and inserting 
     ``Such''; and
       (B) by striking paragraph (4).
       (c) Effective Date and Transitional Rule.--
       (1) In general.--The amendments made by this section shall 
     apply with respect to applications for benefits under title 
     II of the Social Security Act filed on or after the first day 
     of the first month that begins after the date of enactment of 
     this Act, except that such amendments shall not apply in 
     connection with monthly periodic benefits of any individual 
     based on earnings while in service described in section 
     202(k)(5)(A) of the Social Security Act (in the matter 
     preceding clause (i) thereof) if the last day of such service 
     occurs before July 1, 2004.
       (2) Transitional rule.--In the case of any individual whose 
     last day of service described in subparagraph (A) of section 
     202(k)(5) of the Social Security Act (as added by subsection 
     (a) of this section) occurs within 5 years after the date of 
     enactment of this Act--
       (A) the 60-month period described in such subparagraph (A) 
     shall be reduced (but not to less than 1 month) by the number 
     of months of such service (in the aggregate and without 
     regard to whether such months of service were continuous) 
     which--
       (i) were performed by the individual under the same 
     retirement system on or before the date of enactment of this 
     Act, and
       (ii) constituted ``employment'' as defined in section 210 
     of the Social Security Act; and
       (B) months of service necessary to fulfill the 60-month 
     period as reduced by subparagraph (A) of this paragraph must 
     be performed after the date of enactment of this Act.

     SEC. 419. DISCLOSURE TO WORKERS OF EFFECT OF WINDFALL 
                   ELIMINATION PROVISION AND GOVERNMENT PENSION 
                   OFFSET PROVISION.

       (a) Inclusion of Noncovered Employees as Eligible 
     Individuals Entitled to Social Security Account Statements.--
     Section 1143(a)(3) of the Social Security Act (42 U.S.C. 
     1320b-13(a)(3)) is amended--
       (1) by striking ``who'' after ``an individual'' and 
     inserting ``who'' before ``has'' in each of subparagraphs (A) 
     and (B);
       (2) by inserting ``(i) who'' after ``(C)''; and
       (3) by inserting before the period the following: ``, or 
     (ii) with respect to whom the Commissioner has information 
     that the pattern of

[[Page S16195]]

     wages or self-employment income indicate a likelihood of 
     noncovered employment''.
       (b) Explanation in Social Security Account Statements of 
     Possible Effects of Periodic Benefits Under State and Local 
     Retirement Systems on Social Security Benefits.--Section 
     1143(a)(2) of the Social Security Act (42 U.S.C. 1320b-
     13(a)(2)) is amended--
       (1) in subparagraph (C), by striking ``and'' at the end;
       (2) in subparagraph (D), by striking the period and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(E) in the case of an eligible individual described in 
     paragraph (3)(C)(ii), an explanation, in language calculated 
     to be understood by the average eligible individual, of the 
     operation of the provisions under sections 202(k)(5) and 
     215(a)(7) and an explanation of the maximum potential effects 
     of such provisions on the eligible individual's monthly 
     retirement, survivor, and auxiliary benefits.''.
       (c) Truth in Retirement Disclosure to Governmental 
     Employees of Effect of Noncovered Employment on Benefits 
     Under Title II.--Section 1143 of the Social Security Act (42 
     U.S..C. 1320b-13) is amended further by adding at the end the 
     following:

    ``Disclosure to Governmental Employees of Effect of Noncovered 
                               Employment

       ``(d)(1) In the case of any individual commencing 
     employment on or after January 1, 2005, in any agency or 
     instrumentality of any State (or political subdivision 
     thereof, as defined in section 218(b)(2)) in a position in 
     which service performed by the individual does not constitute 
     `employment' as defined in section 210, the head of the 
     agency or instrumentality shall ensure that, prior to the 
     date of the commencement of the individual's employment in 
     the position, the individual is provided a written notice 
     setting forth an explanation, in language calculated to be 
     understood by the average individual, of the maximum effect 
     on computations of primary insurance amounts (under section 
     215(a)(7)) and the effect on benefit amounts (under section 
     202(k)(5)) of monthly periodic payments or benefits payable 
     based on earnings derived in such service. Such notice shall 
     be in a form which shall be prescribed by the Commissioner of 
     Social Security.
       ``(2) The written notice provided to an individual pursuant 
     to paragraph (1) shall include a form which, upon completion 
     and signature by the individual, would constitute 
     certification by the individual of receipt of the notice. The 
     agency or instrumentality providing the notice to the 
     individual shall require that the form be completed and 
     signed by the individual and submitted to the agency or 
     instrumentality and to the pension, annuity, retirement, or 
     similar fund or system established by the governmental entity 
     involved responsible for paying the monthly periodic payments 
     or benefits, before commencement of service with the agency 
     or instrumentality.''.
       (d) Effective Dates.--The amendments made by subsections 
     (a) and (b) of this section shall apply with respect to 
     social security account statements issued on or after January 
     1, 2007.

     SEC. 420. POST-1956 MILITARY WAGE CREDITS.

       (a) Payment to the Social Security Trust Funds in 
     Satisfaction of Outstanding Obligations.--Section 201 of the 
     Social Security Act (42 U.S.C. 401) is amended by adding at 
     the end the following:
       ``(n) Not later than July 1, 2004, the Secretary of the 
     Treasury shall transfer, from amounts in the general fund of 
     the Treasury that are not otherwise appropriated--
       ``(1) $624,971,854 to the Federal Old-Age and Survivors 
     Insurance Trust Fund;
       ``(2) $105,379,671 to the Federal Disability Insurance 
     Trust Fund; and
       ``(3) $173,306,134 to the Federal Hospital Insurance Trust 
     Fund.
     Amounts transferred in accordance with this subsection shall 
     be in satisfaction of certain outstanding obligations for 
     deemed wage credits for 2000 and 2001.''.
       (b) Conforming Amendments.--
       (1) Repeal of authority for annual appropriations and 
     related adjustments to compensate the social security trust 
     fund for military wage credits.--Section 229 of the Social 
     Security Act (42 U.S.C. 429) is amended--
       (A) by striking ``(a)''; and
       (B) by striking subsection (b).
       (2) Amendment to reflect the termination of wage credits 
     effective after calendar year 2001 by section 8134 of public 
     law 107-117.--Section 229(a)(2) of the Social Security Act 
     (42 U.S.C. 429(a)(2)), as amended by paragraph (1), is 
     amended by inserting ``and before 2002'' after ``1977''.

     SEC. 420A. ELIMINATION OF DISINCENTIVE TO RETURN-TO-WORK FOR 
                   CHILDHOOD DISABILITY BENEFICIARIES.

       (a) In General.--Section 202(d)(6)(B) of the Social 
     Security Act (42 U.S.C. 402(d)(6)(B)) is amended--
       (1) by inserting ``(i)'' after ``began''; and
       (2) by adding after ``such disability,'' the following: 
     ``or (ii) after the close of the 84th month following the 
     month in which his most recent entitlement to child's 
     insurance benefits terminated because he ceased to be under 
     such disability due to performance of substantial gainful 
     activity,''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall be effective with respect to benefits payable for 
     months beginning with the 7th month that begins after the 
     date of enactment of this Act.

                    Subtitle C--Technical Amendments

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

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

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

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

     SEC. 423. TECHNICAL CORRECTIONS RELATING TO DOMESTIC 
                   EMPLOYMENT.

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

     SEC. 424. TECHNICAL CORRECTIONS OF OUTDATED REFERENCES.

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

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

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

     SEC. 426. TECHNICAL AMENDMENTS TO THE RAILROAD RETIREMENT AND 
                   SURVIVORS' IMPROVEMENT ACT OF 2001.

       (a) Quorum Rules.--Section 15(j)(7) of the Railroad 
     Retirement Act of 1974 (45 U.S.C. 231n(j)(7)) is amended by 
     striking ``entire Board of Trustees'' and inserting 
     ``Trustees then holding office''.
       (b) Powers of the Board of Trustees.--Section 15(j)(4) of 
     the Railroad Retirement Act of 1974 (45 U.S.C. 231n(j)(4)) is 
     amended to read as follows:
       ``(4) Powers of the board of trustees.--The Board of 
     Trustees shall--
       ``(A) retain independent advisers to assist it in the 
     formulation and adoption of its investment guidelines;
       ``(B) invest assets of the Trust in a manner consistent 
     with such investment guidelines, either directly or through 
     the retention of independent investment managers;
       ``(C) adopt bylaws and other rules to govern its 
     operations;
       ``(D) employ professional staff, and contract with outside 
     advisers, including the Railroad Retirement Board, to provide 
     legal, accounting, investment advisory or management services 
     (compensation for which may be on a fixed contract fee basis 
     or on such other terms as are customary for such services), 
     or other services necessary for the proper administration of 
     the Trust;
       ``(E) sue and be sued and participate in legal proceedings, 
     have and use a seal, conduct business, carry on operations, 
     and exercise its powers within or without the District of 
     Columbia, form, own, or participate in entities of any kind, 
     enter into contracts and agreements necessary to carry out 
     its business purposes, lend money for such purposes, and deal 
     with property as security for the payment of funds so loaned, 
     and possess and exercise any other powers appropriate to 
     carry out the purposes of the Trust;
       ``(F) pay administrative expenses of the Trust from the 
     assets of the Trust; and
       ``(G) transfer money to the disbursing agent or as 
     otherwise provided in section 7(b)(4), to pay benefits 
     payable under this Act from the assets of the Trust.''.

[[Page S16196]]

       (c) State and Local Taxes.--Section 15(j)(6) of the 
     Railroad Retirement Act of 1974 (45 U.S.C. 231n(j)(6)) is 
     amended to read as follows:
       ``(6) State and local taxes.--The Trust shall be exempt 
     from any income, sales, use, property, or other similar tax 
     or fee imposed or levied by a State, political subdivision, 
     or local taxing authority. The district courts of the United 
     States shall have original jurisdiction over a civil action 
     brought by the Trust to enforce this subsection and may grant 
     equitable or declaratory relief requested by the Trust.''.
       (d) Funding.--Section 15(j)(8) of the Railroad Retirement 
     Act of 1974 (45 U.S.C. 231n(j)(8)) is repealed.
       (e) Transfers.--Section 15A(d)(2) of the Railroad 
     Retirement Act of 1974 (45 U.S.C. 231n-1(d)(2)) is amended--
       (1) by inserting ``or the Railroad Retirement Account'' 
     after ``National Railroad Retirement Investment Trust'' the 
     second place it appears;
       (2) by inserting ``or the Railroad Retirement Board'' after 
     ``National Railroad Retirement Investment Trust'' the third 
     place it appears;
       (3) by inserting ``(either directly or through a commingled 
     account consisting only of such obligations)'' after ``United 
     States'' the first place it appears; and
       (4) in the third sentence, by inserting before the period 
     at the end the following: ``or to purchase such additional 
     obligations''.
       (f) Clerical Amendments.--Section 15(j)(5) of the Railroad 
     Retirement Act of 1974 (45 U.S.C. 231n(j)(5)) is amended--
       (1) in subparagraph (B), by striking ``trustee's'' each 
     place it appears and inserting ``Trustee's'';
       (2) in subparagraph (C), by striking ``trustee'' and 
     ``trustees'' each place it appears and inserting ``Trustee'' 
     and ``Trustees'', respectively; and
       (3) in the matter preceding clause (i) of subparagraph (D), 
     by striking ``trustee'' and inserting ``Trustee''.

              Subtitle D--Amendments Related to Title XVI

     SEC. 430. EXCLUSION FROM INCOME FOR CERTAIN INFREQUENT OR 
                   IRREGULAR INCOME AND CERTAIN INTEREST OR 
                   DIVIDEND INCOME.

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

     SEC. 431. UNIFORM 9-MONTH RESOURCE EXCLUSION PERIODS.

       (a) Underpayments of Benefits.--Section 1613(a)(7) of the 
     Social Security Act (42 U.S.C. 1382b(a)(7)) is amended--
       (1) by striking ``6'' and inserting ``9''; and
       (2) by striking ``(or to the first 9 months following such 
     month with respect to any amount so received during the 
     period beginning October 1, 1987, and ending September 30, 
     1989)''.
       (b) Advanceable Tax Credits.--Section 1613(a)(11) of the 
     Social Security Act (42 U.S.C. 1382b(a)(11)) is amended to 
     read as follows:
       ``(11) for the 9-month period beginning after the month in 
     which received--
       ``(A) notwithstanding section 203 of the Economic Growth 
     and Tax Relief Reconciliation Act of 2001, any refund of 
     Federal income taxes made to such individual (or such spouse) 
     under section 24 of the Internal Revenue Code of 1986 
     (relating to child tax credit) by reason of subsection (d) 
     thereof; and
       ``(B) any refund of Federal income taxes made to such 
     individual (or such spouse) by reason of section 32 of the 
     Internal Revenue Code of 1986 (relating to earned income tax 
     credit), and any payment made to such individual (or such 
     spouse) by an employer under section 3507 of such Code 
     (relating to advance payment of earned income credit);''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of enactment of this Act, and 
     shall apply to amounts described in paragraph (7) of section 
     1613(a) of the Social Security Act and refunds of Federal 
     income taxes described in paragraph (11) of such section, 
     that are received by an eligible individual or eligible 
     spouse on or after such date.

     SEC. 432. ELIMINATION OF CERTAIN RESTRICTIONS ON THE 
                   APPLICATION OF THE STUDENT EARNED INCOME 
                   EXCLUSION.

       (a) In General.--Section 1612(b)(1) of the Social Security 
     Act (42 U.S.C. 1382a(b)(1)) is amended by striking ``a child 
     who'' and inserting ``under the age of 22 and''.
       (b) Effective Date.--The amendment made by this section 
     shall be effective with respect to benefits payable for 
     months that begin on or after 1 year after the date of 
     enactment of this Act.

     SEC. 433. EXCEPTION TO RETROSPECTIVE MONTHLY ACCOUNTING FOR 
                   NONRECURRING INCOME.

       (a) In General.--Section 1611(c) of the Social Security Act 
     (42 U.S.C. 1382(c)) is amended by adding at the end the 
     following:
       ``(9)(A) Notwithstanding paragraphs (1) and (2), any 
     nonrecurring income which is paid to an individual in the 
     first month of any period of eligibility shall be taken into 
     account in determining the amount of the benefit under this 
     title of such individual (and his eligible spouse, if any) 
     only for that month, and shall not be taken into account in 
     determining the amount of the benefit for any other month.
       ``(B) For purposes of subparagraph (A), payments to an 
     individual in varying amounts from the same or similar source 
     for the same or similar purpose shall not be considered to be 
     nonrecurring income.''.
       (b) Deletion of Obsolete Material.--Section 1611(c)(2)(B) 
     of the Social Security Act (42 U.S.C. 1382(c)(2)(B)) is 
     amended to read as follows:
       ``(B) in the case of the first month following a period of 
     ineligibility in which eligibility is restored after the 
     first day of such month, bear the same ratio to the amount of 
     the benefit which would have been payable to such individual 
     if eligibility had been restored on the first day of such 
     month as the number of days in such month including and 
     following the date of restoration of eligibility bears to the 
     total number of days in such month.''.
       (c) Effective Date.--The amendments made by this section 
     shall be effective with respect to benefits payable for 
     months that begin on or after 1 year after the date of 
     enactment of this Act.

     SEC. 434. REMOVAL OF RESTRICTION ON PAYMENT OF BENEFITS TO 
                   CHILDREN WHO ARE BORN OR WHO BECOME BLIND OR 
                   DISABLED AFTER THEIR MILITARY PARENTS ARE 
                   STATIONED OVERSEAS.

       (a) In General.--Section 1614(a)(1)(B)(ii) of the Social 
     Security Act (42 U.S.C. 1382c(a)(1)(B)(ii)) is amended--
       (1) by inserting ``and'' after ``citizen of the United 
     States,''; and
       (2) by striking ``, and who,'' and all that follows and 
     inserting a period.
       (b) Effective Date.--The amendments made by this section 
     shall be effective with respect to benefits payable for 
     months beginning after the date of enactment of this Act, but 
     only on the basis of an application filed after such date.

     SEC. 435. TREATMENT OF EDUCATION-RELATED INCOME AND 
                   RESOURCES.

       (a) Exclusion From Income of Gifts Provided for Tuition and 
     Other Education-Related Fees.--Section 1612(b)(7) of the 
     Social Security Act (42 U.S.C. 1382a(b)(7)) is amended by 
     striking ``or fellowship received for use in paying'' and 
     inserting ``fellowship, or gift (or portion of a gift) used 
     to pay''.
       (b) Exclusion From Resources for 9 Months of Grants, 
     Scholarships, Fellowships, or Gifts Provided for Tuition and 
     Other Education-Related Fees.--Section 1613(a) of the Social 
     Security Act (42 U.S.C. 1382b(a)) (as amended by section 
     101(c)(2)) is amended--
       (1) in paragraph (13), by striking ``and'' at the end;
       (2) in paragraph (14), by striking the period and inserting 
     ``; and''; and
       (3) by inserting after paragraph (14) the following:
       ``(15) for the 9-month period beginning after the month in 
     which received, any grant, scholarship, fellowship, or gift 
     (or portion of a gift) used to pay the cost of tuition and 
     fees at any educational (including technical or vocational 
     education) institution.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to benefits payable for months that begin more 
     than 90 days after the date of enactment of this Act.

     SEC. 436. MONTHLY TREATMENT OF UNIFORMED SERVICE 
                   COMPENSATION.

       (a) Treatment of Pay as Received When Earned.--Section 
     1611(c) of the Social Security Act (42 U.S.C. 1382(c)), as 
     amended by section 435(a), is amended by adding at the end 
     the following:
       ``(10) For purposes of this subsection, remuneration for 
     service performed as a member of a uniformed service may be 
     treated as received in the month in which it was earned, if 
     the Commissioner of Social Security determines that such 
     treatment would promote the economical and efficient 
     administration of the program authorized by this title.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to benefits payable for months that begin more 
     than 90 days after the date of enactment of this Act.

                          ____________________