[Congressional Record (Bound Edition), Volume 148 (2002), Part 8]
[House]
[Pages 11224-11237]
[From the U.S. Government Publishing Office, www.gpo.gov]




             SOCIAL SECURITY PROGRAM PROTECTION ACT OF 2002

  Mr. SHAW. Mr. Speaker, I move to suspend the rules and pass the bill 
(H.R. 4070) 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, as amended.
  The Clerk read as follows:

                               H.R. 4070

       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 Program Protection Act of 2002''.
       (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 upon 
              conviction of offenses resulting in imprisonment for more 
              than 1 year and upon fugitive felon status.
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. Denial of title II benefits to fugitive felons and persons 
              fleeing prosecution.

[[Page 11225]]

Sec. 203. Requirements relating to offers to provide for a fee a 
              product or service available without charge from the 
              Social Security Administration.
Sec. 204. Refusal to recognize certain individuals as claimant 
              representatives.
Sec. 205. Penalty for corrupt or forcible interference with 
              administration of Social Security Act.
Sec. 206. Use of symbols, emblems, or names in reference to social 
              security or medicare.

          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.

                    Subtitle C--Technical Amendments

Sec. 431. Technical correction relating to responsible agency head.
Sec. 432. Technical correction relating to retirement benefits of 
              ministers.
Sec. 433. Technical corrections relating to domestic employment.
Sec. 434. Technical corrections of outdated references.
Sec. 435. 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--
       ``(A) that is not an individual (regardless of whether it 
     is a `qualified organization' within the meaning of paragraph 
     (4)(B)); or
       ``(B) is an individual who, for any month during a period 
     when misuse occurs, serves 15 or more individuals who are 
     beneficiaries under this title, title VIII, title XVI, or any 
     combination of such titles;
     misuses all or part of an individual's benefit paid to such 
     representative payee, the Commissioner of Social Security 
     shall certify for payment to the beneficiary or the 
     beneficiary's alternative representative payee an amount 
     equal to the amount of such benefit so misused. The 
     provisions of this paragraph are subject to the limitations 
     of paragraph (7)(B).''.
       (2) Misuse of benefits defined.--Section 205(j) of such Act 
     (42 U.S.C. 405(j)) is amended by adding at the end the 
     following new paragraph:
       ``(8) For purposes of this subsection, misuse of benefits 
     by a representative payee occurs in any case in which the 
     representative payee receives payment under this title for 
     the use and benefit of another person and converts such 
     payment, or any part thereof, to a use other than for the use 
     and benefit of such other person. The Commissioner of Social 
     Security may prescribe by regulation the meaning of the term 
     `use and benefit' for purposes of this paragraph.''.
       (b) Title VIII Amendments.--
       (1) Reissuance of benefits.--Section 807(i) of the Social 
     Security Act (42 U.S.C. 1007(i)) is amended by inserting 
     after the first sentence the following new sentences: ``In 
     any case in which a representative payee--
       ``(1) that is not an individual; or
       ``(2) is an individual who, for any month during a period 
     when misuse occurs, serves 15 or more individuals who are 
     beneficiaries under this title, title II, title XVI, or any 
     combination of such titles;
     misuses all or part of an individual's benefit paid to such 
     representative payee, the Commissioner of Social Security 
     shall pay to the beneficiary or the beneficiary's alternative 
     representative payee an amount equal to the amount of such 
     benefit so misused. The provisions of this paragraph are 
     subject to the limitations of subsection (l)(2).''.
       (2) Misuse of benefits defined.--Section 807 of such Act 
     (42 U.S.C. 1007) is amended by adding at the end the 
     following new subsection:
       ``(j) Misuse of Benefits.--For purposes of this title, 
     misuse of benefits by a representative payee occurs in any 
     case in which the representative payee receives payment under 
     this title for the use and benefit of another person 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 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--
       ``(i) that 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 make payment to the beneficiary or the beneficiary's 
     alternative representative payee of an amount equal to the 
     amount of the benefit so misused. The provisions of this 
     subparagraph are subject to the limitations of subparagraph 
     (H)(ii).''.
       (2) Exclusion of reissued benefits from resources.--Section 
     1613(a) of such Act (42 U.S.C. 1382b(a)) is amended--
       (A) in paragraph (12), by striking ``and'' at the end;
       (B) in paragraph (13), by striking the period and inserting 
     ``; and''; and
       (C) by inserting after paragraph (13) the following new 
     paragraph:
       ``(14) for the 9-month period beginning after the month in 
     which received, any amount received by such individual (or 
     spouse) or any other person whose income is deemed to be 
     included in such individual's (or spouse's) income for 
     purposes of this title as restitution for benefits under this 
     title, title II, or title VIII that a representative payee of 
     such individual (or spouse) or such other person under 
     section 205(j), 807, or 1631(a)(2) has misused.''.
       (3) Misuse of benefits defined.--Section 1631(a)(2)(A) of 
     such Act (42 U.S.C. 1383(a)(2)(A)) is amended by adding at 
     the end the following new clause:
       ``(iv) For purposes of this paragraph, misuse of benefits 
     by a representative payee occurs in any case in which the 
     representative payee receives payment under this title for 
     the use and benefit of another person and converts such 
     payment, or any part thereof, to a use other than for the use 
     and benefit of such other person. The Commissioner of Social 
     Security may prescribe by regulation the meaning of the term 
     `use and benefit' for purposes of this clause.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to any case of benefit misuse by a representative 
     payee with respect to which the Commissioner makes the 
     determination of misuse on or after January 1, 1995.

     SEC. 102. OVERSIGHT OF REPRESENTATIVE PAYEES.

       (a) Certification of Bonding and Licensing Requirements for 
     Nongovernmental Organizational Representative Payees.--
       (1) Title ii amendments.--Section 205(j) of the Social 
     Security Act (42 U.S.C. 405(j)) is amended--
       (A) in paragraph (2)(C)(v), by striking ``a community-based 
     nonprofit social service agency licensed or bonded by the 
     State'' in subclause (I) and inserting ``a certified 
     community-based nonprofit social service agency (as defined 
     in paragraph (9))'';
       (B) in paragraph (3)(F), by striking ``community-based 
     nonprofit social service agencies'' and inserting ``certified 
     community-based nonprofit social service agencies (as defined 
     in paragraph (9))'';
       (C) in paragraph (4)(B), by striking ``any community-based 
     nonprofit social service agency which is bonded or licensed 
     in each State in which it serves as a representative payee'' 
     and inserting ``any certified community-based nonprofit 
     social service agency (as defined in paragraph (9))''; and

[[Page 11226]]

       (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.''.

[[Page 11227]]

     SEC. 103. DISQUALIFICATION FROM SERVICE AS REPRESENTATIVE 
                   PAYEE UPON CONVICTION OF OFFENSES RESULTING IN 
                   IMPRISONMENT FOR MORE THAN 1 YEAR AND UPON 
                   FUGITIVE FELON STATUS.

       (a) Title II Amendments.--Section 205(j)(2) of the Social 
     Security Act (42 U.S.C. 405(j)(2)) is amended--
       (1) in subparagraph (B)(i)--
       (A) by striking ``and'' at the end of subclause (III);
       (B) by redesignating subclause (IV) as subclause (VI); and
       (C) by inserting after subclause (III) the following new 
     subclauses:
       ``(IV) obtain information concerning whether such person 
     has been convicted of any other offense under Federal or 
     State law which resulted in imprisonment for more than 1 
     year,
       ``(V) obtain information concerning whether such person is 
     a fugitive felon as described in section 1611(e)(4), and''.
       (2) in subparagraph (C)(i)(II), by striking ``subparagraph 
     (B)(i)(IV),,'' and inserting ``subparagraph (B)(i)(VI)'' and 
     striking ``section 1631(a)(2)(B)(ii)(IV)'' and inserting 
     ``section 1631(a)(2)(B)(ii)(VI)''; and
       (3) in subparagraph (C)(i)--
       (A) by striking ``or'' at the end of subclause (II);
       (B) by striking the period at the end of subclause (III) 
     and inserting a comma; and
       (C) by adding at the end the following new subclauses:
       ``(IV) such person has previously been convicted as 
     described in subparagraph (B)(i)(IV), unless the Commissioner 
     determines that such certification would be appropriate 
     notwithstanding such conviction, or
       ``(V) such person is in fugitive felon status as described 
     in section 1611(e)(4).''.
       (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 a law of the United 
     States or of any State of the United States which resulted in 
     imprisonment for more than 1 year;
       ``(E) obtain information concerning whether such person is 
     a fugitive felon as described in section 804(a)(2); and''; 
     and
       (2) in subsection (d)(1)--
       (A) by striking ``or'' at the end of subparagraph (B);
       (B) by striking the period at the end of subparagraph (C) 
     and inserting a semicolon; and
       (C) by adding at the end the following new subparagraphs:
       ``(D) such person has previously been convicted as 
     described in subsection (b)(2)(D), unless the Commissioner 
     determines that such payment would be appropriate 
     notwithstanding such conviction; or
       ``(E) such person is in fugitive felon status as 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 fugitive felon as described in section 1611(e)(4); and'';
       (2) in clause (iii)(II)--
       (A) by striking ``clause (ii)(IV)'' and inserting ``clause 
     (ii)(VI)''; and
       (B) by striking ``section 205(j)(2)(B)(i)(IV)'' and 
     inserting ``section 205(j)(2)(B)(i)(VI)''; and
       (3) in clause (iii)--
       (A) by striking ``or'' at the end of subclause (II);
       (B) by striking the period at the end of subclause (III) 
     and inserting a semicolon; and
       (C) by adding at the end the following new subclauses:
       ``(IV) if 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 in fugitive felon status as described 
     in section 1611(e)(4).''.
       (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 makes the determination of misuse after December 
     31, 2002.

     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 of this Act) is amended further--
       (1) by redesignating paragraphs (7), (8), and (9) as 
     paragraphs (8), (9), and (10), respectively;
       (2) in paragraphs (2)(C)(v), (3)(F), and (4)(B), by 
     striking ``paragraph (9)'' and inserting ``paragraph (10)'';
       (3) in paragraph (6)(A)(ii), by striking ``paragraph (9)'' 
     and inserting ``paragraph (10)''; and
       (4) by inserting after paragraph (6) the following new 
     paragraph:
       ``(7)(A) If the Commissioner of Social Security or a court 
     of competent jurisdiction determines that a representative 
     payee that is not a Federal, State, or local government 
     agency has misused all or part of an individual's benefit 
     that was paid to such representative payee under this 
     subsection, the representative payee shall be liable for the 
     amount misused, and such amount (to the extent not repaid by 
     the representative payee) shall be treated as an overpayment 
     of benefits under this title to the representative payee for 
     all purposes of this Act and related laws pertaining to the 
     recovery of such overpayments. Subject to subparagraph (B), 
     upon recovering all or any part of such amount, the 
     Commissioner shall certify an amount equal to the recovered 
     amount for payment to such individual or such individual's 
     alternative representative payee.
       ``(B) The total of the amount certified for payment to such 
     individual or such individual's alternative representative 
     payee under subparagraph (A) of this paragraph 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 an 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

[[Page 11228]]

     amount to such individual or such 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) of this subsection 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 of this 
     Act) 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) of this subparagraph 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 makes the 
     determination of misuse after December 31, 2002.

     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,
       ``(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, or
       ``(D) conceals or fails to disclose the occurrence of any 
     event that the person knows, or should know, is material to 
     the determination of any initial or continuing right to the 
     amount of monthly insurance benefits under title II or 
     benefits or payments under title VIII or XVI,
     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 VIII or 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,
       ``(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 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, or
       ``(4) conceals or fails to disclose the occurrence of any 
     event that the person knows, or should know, is material to 
     the determination of any initial or continuing right to the 
     amount of monthly insurance benefits under title II or 
     benefits or payments under title VIII or XVI,
     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

[[Page 11229]]

     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 
     later of--
       (1) 180 days after the date of the enactment of this Act, 
     or
       (2) the earlier of the date on which the Commissioner of 
     Social Security implements the system for issuing the 
     receipts required under subsection (e) of this section or the 
     date on which the Commissioner implements the centralized 
     computer file described in such subsection.
       (e) Issuance by Commissioner of Receipts to Acknowledge 
     Submission of Reports of Changes in Earning or Work Status.--
     Effective 180 days 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 beneficiary (or 
     representative) regarding a change in the beneficiary's 
     earning or work status, the Commissioner shall issue a 
     receipt to the beneficiary (or representative) each time he 
     or she submits documentation, or otherwise reports to the 
     Commissioner, on a change in such status.

     SEC. 202. DENIAL OF TITLE II BENEFITS TO FUGITIVE FELONS AND 
                   PERSONS FLEEING PROSECUTION.

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

     SEC. 203. 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 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 one year after the date of the 
     enactment of this Act.

     SEC. 204. 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 (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. 205. 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 1134 the 
     following new section:


   ``attempts to interfere with administration of social security act

       ``Sec. 1135. Corrupt or Forcible Interference.--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 member of the family of 
     such an officer or employee.''.

     SEC. 206. 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.

[[Page 11230]]

          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 by inserting 
     ``, except that the maximum amount of the assessment may not 
     exceed $100'' after ``subparagraph (B)''.
       (b) Effective Date.--The amendment made by this section 
     shall apply with respect to fees for representation of 
     claimants which are first required to be certified or paid 
     under section 206 of the Social Security Act on or after the 
     first day of the first month that begins after 180 days after 
     the date of the enactment of this Act.

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

       (a) In General.--Section 1631(d)(2) of the Social Security 
     Act (42 U.S.C. 1383(d)(2)) is amended--
       (1) in subparagraph (A), in the matter preceding clause 
     (i)--
       (A) by striking ``section 206(a)'' and inserting ``section 
     206'';
       (B) by striking ``(other than paragraph (4) thereof)'' and 
     inserting ``(other than subsections (a)(4) and (d) 
     thereof)''; and
       (C) by striking ``paragraph (2) thereof'' and inserting 
     ``such section'';
       (2) in subparagraph (A)(i), by striking ``in subparagraphs 
     (A)(ii)(I) and (C)(i),'' and inserting ``in subparagraphs 
     (A)(ii)(I) and (D)(i) of subsection (a)(2)'', and by striking 
     ``and'' at the end;
       (3) by striking subparagraph (A)(ii) and inserting the 
     following:
       ``(ii) by substituting, in subsections (a)(2)(B) and 
     (b)(1)(B)(i), the phrase `section 1631(a)(7)(A) or the 
     requirements of due process of law' for the phrase 
     `subsection (g) or (h) of section 223';
       ``(iii) by substituting, in subsection (a)(2)(C)(i), the 
     phrase `under title II' for the phrase `under title XVI';
       ``(iv) by substituting, in subsection (b)(1)(A), the phrase 
     `pay the amount of such fee' for the phrase `certify the 
     amount of such fee for payment' and by striking, in 
     subsection (b)(1)(A), the phrase `or certified for payment'; 
     and
       ``(v) by substituting, in subsection (b)(1)(B)(ii), the 
     phrase `deemed to be such amounts as determined before any 
     applicable reduction under section 1631(g), and reduced by 
     the amount of any reduction in benefits under this title or 
     title II made pursuant to section 1127(a)' for the phrase 
     `determined before any applicable reduction under section 
     1127(a))'.''; and
       (4) by striking subparagraph (B) and inserting the 
     following new subparagraphs:
       ``(B) Subject to subparagraph (C), if the claimant is 
     determined to be entitled to past-due benefits under this 
     title and the person representing the claimant is an 
     attorney, the Commissioner of Social Security shall pay out 
     of such past-due benefits to such attorney an amount equal to 
     the lesser of--
       ``(i) so much of the maximum fee as does not exceed 25 
     percent of such past-due benefits (as determined before any 
     applicable reduction under section 1631(g) and reduced by the 
     amount of any reduction in benefits under this title or title 
     II pursuant to section 1127(a)), or
       ``(ii) the amount of past-due benefits available after any 
     applicable reductions under sections 1631(g) and 1127(a).
       ``(C)(i) Whenever a fee for services is required to be paid 
     to an attorney from a claimant's past-due benefits pursuant 
     to subparagraph (B), the Commissioner shall impose on the 
     attorney an assessment calculated in accordance with clause 
     (ii).
       ``(ii)(I) The amount of an assessment under clause (i) 
     shall be equal to the product obtained by multiplying the 
     amount of the representative's fee that would be required to 
     be paid by subparagraph (B) before the application of this 
     subparagraph, by the percentage specified in subclause (II), 
     except that the maximum amount of the assessment may not 
     exceed $100.
       ``(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.--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.
       (c) Report to the Congress.--The Commissioner of Social 
     Security, after consulting with representatives of affected 
     beneficiaries and other interested persons, shall prepare a 
     report evaluating the feasibility 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. 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, and the Commissioner shall include in such report any 
     recommendations that the Commissioner considers appropriate.

            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 title 
     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 title 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;

[[Page 11231]]

       ``(B) who is receiving a cash payment described in section 
     1616(a) of this Act or a supplementary payment described in 
     section 212(a)(3) of Public Law 93-66 (without regard to 
     whether such payment is paid by the Commissioner pursuant to 
     an agreement under section 1616(a) of this Act or under 
     section 212(b) of Public Law 93-66);
       ``(C) who, pursuant to section 1619(b) of this Act, is 
     considered to be receiving benefits under title XVI of this 
     Act; or
       ``(D) who is entitled to benefits under part A of title 
     XVIII of this Act by reason of the penultimate sentence of 
     section 226(b) of this Act.''.
       (2) Advocacy or other services needed to maintain gainful 
     employment.--Section 1150(b)(2) of such Act (42 U.S.C. 1320b-
     21(b)(2)) is amended by striking ``secure or regain'' and 
     inserting ``secure, maintain, or regain''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply with respect to payments provided after the date 
     of the enactment of this Act.

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

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

                  Subtitle B--Miscellaneous Amendments

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

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

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

       (a) In General.--Paragraphs (1) and (2) of section 202(n) 
     of the Social Security Act (42 U.S.C. 402(n)(1), (2)) are 
     each amended by striking ``or (1)(E)''.
       (b) Effective Date.--The amendment made by this section to 
     section 202(n)(1) of the Social Security Act shall apply to 
     individuals with respect to whom the Commissioner of Social 
     Security receives a removal notice from the Attorney General 
     after the date of the enactment of this Act. The amendment 
     made by this section to section 202(n)(2) of the Social 
     Security Act shall apply with respect to removals occurring 
     after the date of the enactment of this Act.

     SEC. 413. REINSTATEMENT OF CERTAIN REPORTING REQUIREMENTS.

       Section 3003(a)(1) of the Federal Reports Elimination and 
     Sunset Act of 1995 (31 U.S.C. 1113 note) does 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 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 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.

       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,''.

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

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

                 ``Compensation, Expenses, and Per Diem

       ``(f) A member of the Board shall, for each day (including 
     traveltime) during which the member is attending meetings or 
     conferences of the Board or otherwise engaged in the business 
     of the Board, be compensated at the daily rate of basic pay 
     for level IV of the Executive Schedule for each day during 
     which the member is engaged in performing a function of the 
     Board. While serving on business of the Board away from their 
     homes or regular places of business, members may be allowed 
     travel expenses, including per diem in lieu of subsistence, 
     as authorized by section 5703 of title 5, United States Code, 
     for persons in the Government employed intermittently.''.
       (b) Effective Date.--The amendment made by this section 
     shall be effective as of January 1, 2002.

                    Subtitle C--Technical Amendments

     SEC. 431. 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. 432. 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

[[Page 11232]]

     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. 433. 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. 434. 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. 435. TECHNICAL CORRECTION RESPECTING SELF-EMPLOYMENT 
                   INCOME IN COMMUNITY PROPERTY STATES.

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

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Florida (Mr. Shaw) and the gentleman from California (Mr. Matsui) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Florida (Mr. Shaw).
  Mr. SHAW. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, the House today will consider the Social Security 
Program Protection Act of 2002. It is legislation that would provide 
the Social Security Administration with the additional tools it needs 
to fight activities that drain program resources and undermine the 
financial security of beneficiaries.
  Many Social Security and supplemental security income beneficiaries 
have individuals or organizations called representative payees 
appointed by the agency to help manage their financial affairs when 
they are not capable. Nearly 7 million beneficiaries entrust their 
finances to representative payees who help safeguard their income and 
make sure expenditures are made in their best interests. Most are 
conscientious and honest. However, some are not.
  This bill raises the standard for representative payees and imposes 
stricter regulation and monetary penalties on those who take advantage 
of seniors. The bill also expands the existing prohibition against 
fugitive felons receiving benefits. In 1996, Congress denied 
supplemental security income benefits to persons fleeing prosecution or 
confinement. However, fugitive felons can still receive title II 
benefits. This is plain wrong, and H.R. 4070 denies benefits to those 
fleeing justice.
  Furthermore, the protection act enhances the ability of the Inspector 
General to fight fraud through new civil monetary penalties. This will 
help prevent seniors from being taken advantage of by unscrupulous 
organizations and individuals who deceptively present themselves as 
part of the Social Security Administration.
  While the bill cracks down on fraud and abuse, it also makes it 
easier for persons applying for disability benefits to obtain needed 
legal representation, and it improves the flexibility of the Ticket to 
Work program to enable more individuals with disabilities to seek and 
find jobs and achieve self-sufficiency. Also, the bill would amend the 
Social Security Act to include Kentucky among the States that may 
divide their retirement systems into two parts and thereby providing 
Social Security coverage under State agreement only for those State and 
local workers who choose it.
  Ensuring the integrity of Social Security programs is a key 
responsibility of the agency and of Congress. Taxpayers must be 
confident that their hard-earned payroll dollars are being spent 
accurately and wisely. Those who apply for and who receive Social 
Security benefits must receive timely services and correct and fair 
decisions. On that we can all agree, and that is why this bill has 
bipartisan support and was approved unanimously by the Social Security 
subcommittee.
  This bill is the culmination of extensive joint efforts by both the 
majority and minority Members of the Committee on Ways and Means and 
the full cooperation and support of the Social Security Administration 
and the Office of Inspector General. The legislation also benefited 
from the feedback provisions by advocacy groups and law enforcement 
agencies. Last, but certainly not least, this bill results in a small 
amount of savings for both the Social Security trust funds and general 
revenues.
  Today, we have an opportunity to continue our long tradition of 
achievements on the Social Security program which has been built on a 
foundation of common ground. Working together over the years, we have 
removed barriers for individuals with disabilities to return to work. 
We ended the earnings penalty for seniors who have reached full 
retirement age; and most recently, the House approved legislation last 
month to enhance benefits for women.
  Working together we can vote today to protect some of the most 
vulnerable beneficiaries and the integrity of the Social Security 
program. My hope is that we can continue to build on these important 
first steps and begin a constructive dialogue to strengthen Social 
Security for our children, our grandchildren, and for all future 
generations.
  Mr. Speaker, I reserve the balance of my time.
  Mr. MATSUI. Mr. Speaker, I yield myself such time as I may consume.
  I rise in support of H.R. 4070, the Social Security Program 
Protection Act of 2002. At this time, I would like to congratulate and 
thank my colleague, the gentleman from Florida (Mr. Shaw), the Chair of 
the Subcommittee on Social Security of the Committee on Ways and Means, 
for his cooperation and his work on this particular piece of 
legislation.

[[Page 11233]]

                              {time}  1500

  Basically, there are three components of this legislation, Mr. 
Speaker. We have the representative payee issue that the gentleman from 
Florida (Mr. Shaw) spoke about, the attorney's fees section as it 
pertains to supplemental security income, and there are a number of 
program protections that were added to the Social Security 
Administration's laws.
  In terms of the representative payee, Mr. Speaker, as many people may 
not know, if a Social Security recipient has a mental disability, is 
young or perhaps is of extreme old age, oftentimes that individual 
needs somebody to care for his or her Social Security check, whether it 
is a disability check or whether it is a regular Social Security check. 
So we have under the law what is known as representative payees. This 
has been in existence for quite some time.
  As our hearings and anecdotal information that many of us have 
received in our congressional districts can attest to, we have had 
problems with this program over the years because, oftentimes, if the 
representative payee is not somebody of good character, that person may 
take the Social Security check, abscond with it, and actually do damage 
to the normal recipient of the Social Security check.
  I had that problem some 12 years ago when a woman, Dorothea Puente, 
had been a caretaker of a home in which about 15 people were living in 
and she was the representative payee for all these people. She did not 
need a bond or a license at that time. She actually murdered a number 
of these people and took their checks. Finally, when one of the 
relatives found out about the fact that one of the tenants of the 
rooming house was missing, that is when it was uncovered that many 
people had been murdered as a result of her activities and she was 
receiving these checks.
  Basically, what this legislation would do is to tighten up the 
circumstances in which one could be qualified as a representative 
payee. If one is an organizational payee, it requires the organization 
to be both licensed and bonded. Right now, it only requires one or the 
other. And it would also require inspections of certain representative 
payees in terms of visiting with them, talking with them, and making 
sure that in fact they are carrying out their fiduciary 
responsibilities.
  Also, if anyone has been convicted of an offense resulting in prison 
for more than a year, they would be disqualified, or, obviously, a 
fugitive or felon would be as well. And it would impose a monetary or 
civil penalty on a payee who misuses benefits, and there was some 
obvious ambiguity in the law before this time.
  One of the most important provisions is that the beneficiary of the 
Social Security checks oftentimes lose their savings when the 
representative payee in fact has taken the money. This would, under a 
certain showing, would require the representative payee to pay the 
money back but also would allow the recipient of the benefits to be 
made whole under a showing of certain circumstances.
  Under the second section of the law, the attorney's fee section, Mr. 
Speaker, many supplemental security recipients need representation, 
because oftentimes they must seek their claims through the normal 
administrative review system. This would allow these claimants to have 
an attorney. Oftentimes, it is hard to get lawyers to represent them 
because of the way the fee schedule is arranged and also because the 
attorneys can never be guaranteed they will receive compensation for 
their work. This would change that by allowing the Social Security 
Administration to withhold fees for the attorneys and, at the same 
time, cut the processing fee, which is currently 6.3 percent of the 
overall attorney fees, to no more than $100.
  Lastly, the third element of this program, obviously, would deny 
benefits to fugitive felons, which is under current law, and persons 
fleeing prosecution. It would require companies that charge a fee for 
services under the Social Security Administration, if in fact the 
administration does not charge a fee, it requires the companies to 
state it; that, in fact, the Social Security Administration would 
provide the same services without any compensation or without fee.
  There are a number of other provisions, like it bars attorneys who 
have been disbarred or otherwise disqualified from the practice of 
representing claimants under the Social Security Act. So this 
legislation would go a long ways in helping recipients, it would 
undoubtedly help recipients obtain representation, and it would build 
in a number of protections for claimants in this Social Security 
Administration Act.
  I would urge support of H.R. 4070; and I want to commend my 
colleague, the gentleman from Florida (Mr. Shaw), for the work that he 
has done on this particular legislation.
  Mr. Speaker, I reserve the balance of my time.
  Mr. SHAW. Mr. Speaker, I yield 2 minutes to the gentleman from 
Kentucky (Mr. Lewis), a valued member of the subcommittee.
  Mr. LEWIS of Kentucky. Mr. Speaker, I thank the gentleman for 
yielding me this time, and I rise today to register my strong support 
for the Social Security Protection Act of 2002.
  Last month, the House passed a bill that would result in higher 
Social Security for women. It passed 418 to 0. I expect to see the same 
strong bipartisan support for the legislation we are considering today.
  H.R. 4070 is a common-sense bill that provides the Social Security 
Administration with the necessary resources to fight fraud and abuse 
within the system. Along with other provisions, this will help save 
over $165 million over 5 years.
  The bill also improves the landmark Ticket to Work bill to help 
people with disabilities find work. In addition, H.R. 4070 adds 
Kentucky to the list of States that offer divided retirement systems.
  In just over 6 months from now, the governments of the City of 
Louisville and Jefferson County will merge. Since the merger was 
approved by the people of Jefferson County in November, 2000, local 
elected officials have been working to go to ensure a smooth 
transition.
  One important issue that still needs to be addressed is how to 
provide Social Security and Medicare coverage to hazardous duty 
employees working for the county and city.
  On January 6, 2003, all officers will be considered as a single group 
for Social Security coverage purposes. Currently, some police officers 
and firefighters contribute to Medicare but not Social Security, some 
contribute to both, others neither. Ensuring fair and equitable 
coverage presents a serious challenge to the new government.
  After working with all interested parties, it was agreed a divided 
retirement system is the solution. Currently, 21 States use this 
system.
  Under a divided retirement system, each employee will decide whether 
to pay into Social Security. All new employees hired after the system 
is in place would automatically be enrolled in Social Security.
  The Kentucky Division of Social Security has already started the 
education process with representatives from SSA and the Louisville 
Fraternal Order of Police. And the Kentucky General Assembly has 
adopted a bill that allows this system to go forward as soon as 
Congress approves this legislation and President Bush signs it into 
law.
  This provision is important to the police officers and firefighters 
in my district. I appreciate the gentleman from Florida (Mr. Shaw) and 
the gentleman from California (Mr. Matsui) agreeing to include it in 
H.R. 4070.
  In closing, I urge my colleagues to support this bill.
  Mr. MATSUI. Mr. Speaker, I yield 2 minutes to the gentleman from New 
Jersey (Mr. Andrews).
  Mr. ANDREWS. Mr. Speaker, I thank the gentleman for yielding me this 
time.
  I thank and commend the authors of this very worthy legislation for 
bringing it to the floor, but, Mr. Speaker, I must lament the questions 
that we are not answering about Social Security, which I think are far 
more fundamental.

[[Page 11234]]

  As we speak today, for every $100 our government is spending, we are 
only bringing in about $90 worth of revenue. The way we are making up 
the $10 difference is to reach first into the Social Security Trust 
Fund to fund the operations of this government. That is the number one 
issue about Social Security, stopping that practice.
  We need to bring together the leadership of the House and the Senate 
to sit around the kitchen table, as many American families did after 
the disaster of September 11 to figure out how to change their budget, 
we need to figure out how to change ours.
  A second major Social Security question that is not being dealt with 
on this floor is the idea of privatizing all or part of the Social 
Security system. This is an idea that is worthy of debate. I think it 
has many flaws, many risks, and many pitfalls. There are those who in 
good faith disagree with my conclusions, but no one should disagree 
that, before this Congress adjourns for the year, ideas about the 
privatization of Social Security should be brought to this floor, 
debated, and voted upon, so the American people can see where the 
Members stand and what they believe about these very important 
questions.
  So I commend the authors for this very worthy bill, but I must lament 
the fact we are not answering the fundamental fact about Social 
Security: How do we stop dipping into the fund to fund the operations 
of the United States Government? That is what we need to focus on.
  Mr. SHAW. Mr. Speaker, I yield 2 minutes to the gentleman from 
California (Mr. Herger), a distinguished member of the Committee on 
Ways and Means.
  Mr. HERGER. Mr. Speaker, I rise in strong support of H.R. 4070, the 
Social Security Program Protection Act. This legislation contains 
important provisions to better protect retired and disabled Americans. 
In particular, I want to congratulate the chairman, the gentleman from 
Florida (Mr. Shaw), for the changes in his bill designed to keep 
convicted fugitive felons from getting Social Security checks. These 
efforts build on legislation I authored in 1996 that blocks fugitives 
from getting supplemental security income, or SSI, checks.
  According to the Social Security Inspector General, since the 1996 
changes, over 65,000 fugitives have been identified and almost 7,000 
have been arrested. As a result, American taxpayers have saved an 
estimated $200 million. The legislation before us today takes the next 
step by also barring fugitives from getting Social Security checks.
  Some Americans receive both Social Security and SSI checks. Yet, 
under current law, the government stops SSI checks for fugitives while 
continuing to send Social Security checks, even to known fugitives. 
This legislation closes that fugitive loophole. Our law should help 
bring fugitives to justice, not subsidize their flights from justice. 
This bill does just that.
  Over the years, the Committee on Ways and Means on which I serve has 
taken a number of steps to better protect Social Security recipients 
and other taxpayers. We ended SSI checks for prisoners and fugitives, 
and we stopped subsidizing addicts with disability checks. The changes 
in this legislation follow that same spirit, and I urge my colleagues 
to support this bill.
  Mr. MATSUI. Mr. Speaker, I yield 2 minutes to the distinguished 
gentleman from the State of North Dakota (Mr. Pomeroy), a member of the 
Subcommittee on Social Security of the Committee on Ways and Means.
  Mr. POMEROY. Mr. Speaker, I thank the gentleman for yielding me this 
time.
  This is a fine little bill, contains some protections for people who, 
because of age and disability, need assistance in managing their 
financial affairs for a family member, friend, or community 
organization. I will vote for this bill, and I urge my colleagues to 
vote for this bill.
  But in a broader sense, it is a little like the community fire 
department of Durango, Colorado, holding an open house today. They are 
not holding an open house today because they have a fire to fight. 
Bigger things to do.
  Quite frankly, when it comes to the Social Security program, I think 
there are more pressing matters than this legislation, which admittedly 
is good. We have to do it. I am glad we are doing it. But to have this 
take the place of the broader debate is absolutely confounding.
  Two principal questions hang over the Social Security program: the 
first involves its finances. We have gone from retiring debt held by 
the public, strengthening the financial condition of this country with 
those Social Security surplus dollars, to now running once again budget 
deficits. This means a raid on Social Security dollars, taking cash 
coming in for Social Security and spending it on other programs of 
government. That is wrong, and it makes our long-term funding problem 
for Social Security even harder.
  Second major issue: privatization. We know the President wants to 
privatize Social Security. He has said so. He has had a commission that 
came out with recommendations to privatize Social Security. We know the 
majority has bills to privatize Social Security. We think we deserve to 
have debate on the floor of this House about that significant concept.
  Count me against it. I believe the existing Social Security program 
provides vitally important guaranteed revenue to people in their 
retirement years, to people living on disability, or to individuals who 
have lost the primary breadwinner in their home. This is a program that 
has worked for six decades, perhaps better than any other Federal 
program. To have these plans afoot to so dramatically change the system 
but held quietly under the rug until the next election is just wrong. 
Let us get it out, let us debate it, and, in the end, let us strengthen 
Social Security.
  Mr. SHAW. Mr. Speaker, I yield 2 minutes to the gentleman from Texas 
(Mr. Brady), a distinguished member of the Subcommittee on Social 
Security of the Committee on Ways and Means.
  Mr. BRADY of Texas. Mr. Speaker, I thank the gentleman for yielding 
me this time, and I rise today in support of the Social Security 
Protection Act.
  I want to thank Chairman Shaw for his work on this and other issues 
related to Social Security.
  What we are debating today is a bill that will cut down on the waste, 
fraud, and abuse that surrounds the Social Security system today. This 
bill is needed to protect the 7 million people in this country who 
receive Social Security benefits but cannot manage them on their own. 
People like young, innocent children, people with Alzheimer's, and 
those with severe mental illness are just a few of the real-life 
examples we are trying to help.
  We expect this bill to pass by a very broad bipartisan margin. That 
is how Social Security issues ought to pass, with Republicans and 
Democrats working together to reform this vital retirement system.

                              {time}  1515

  It surprises me that we are seeing such a lively debate on this 
bipartisan measure.
  Mr. Speaker, we know if we do not reform Social Security in a 
bipartisan manner, it will go broke in 2017. Now is the time to get the 
ball rolling on reform by working together. Republicans have come up 
with a responsive plan that does not privatize Social Security as 
Members on the other side of the aisle would scare us with.
  The question here is: Is there anyone in Washington who seriously 
believes we can preserve Social Security once and for all without 
putting some portion of our payroll taxes to work for us? Common sense 
tells us we must transition to a traditional retirement plan where 
money grows over time into a bigger nest egg. The only question is how 
we do it and how soon. Some would say that is privatizing; most would 
say that is common sense.
  Mr. Speaker, I sincerely hope the rhetoric being heard on the floor 
is not an indicator for the debate that is to come on this issue. It is 
time for Republicans and Democrats to sit down and have a reasonable, 
rational discussion about saving Social Security once and for all.

[[Page 11235]]

  Mr. MATSUI. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I would just comment to the gentleman from Texas (Mr. 
Brady) that perhaps the majority should just bring a bill on the floor 
on privatization, let us debate it, and vote on it. That way we can 
discuss it if the gentleman is in favor of it.
  Mr. Speaker, I yield 2 minutes to the gentleman from Maine (Mr. 
Allen).
  Mr. ALLEN. Mr. Speaker, I thank the gentleman for yielding me this 
time.
  Mr. Speaker, I rise in strong support of H.R. 4070, the Social 
Security Program Protection Act of 2002. I commend the gentleman from 
Florida (Mr. Shaw) and the gentleman from California (Mr. Matsui) for 
their work on this bill.
  I want to speak regarding section 415, which will directly benefit 
one of my constituents, Mrs. Nancy Wilson of Bremen, Maine. In both the 
105th and 106th Congresses, private legislation passed this House that 
I sponsored that would have helped Nancy Wilson, but it was not acted 
upon by the other body. In the 107th Congress, the Committee on Ways 
and Means raised objections to the private legislation. However, the 
committee has graciously worked with me to include in H.R. 4070 
language from my bill, H.R. 319, that will help Mrs. Wilson.
  She has been denied Social Security benefits for more than 10 years 
due to a quirk in the law. H.R. 4070 will fix that problem and give her 
relief. In 1950, Nancy and Al Wilson began living together in 
Massachusetts. Al Wilson's previous wife, Edna, had been committed to a 
mental institution and was never going to come out. Massachusetts law 
at that time prevented divorce on the grounds of insanity so Al could 
not divorce Edna. The law has since been changed. Al and Nancy lived 
together for 19 years, raised children together, but were not allowed 
to marry until Edna's death in 1969. Then they got married, but Al died 
of cancer 7 months later.
  When Nancy tried to claim widow's benefits, she was denied because 
her marriage to Al had lasted only 7 months, not 9 months. She 
exhausted her options under the administrative appeals process and then 
came to her congressional delegation.
  Well, Nancy Wilson is a tenacious battler. She will not give up. She 
will not let her elected representatives give up; and I hope and 
believe that with passage of this bill, she will finally get the relief 
to which she is entitled.
  Mr. Speaker, I urge support for this legislation.
  Mr. SHAW. Mr. Speaker, I yield myself such time as I may consume. I 
congratulate the gentleman from Maine (Mr. Allen) for his tenacious and 
unyielding involvement in that particular tragedy. I am delighted that 
we will at last be able to deliver relief.
  Mr. Speaker, I reserve the balance of my time.
  Mr. MATSUI. Mr. Speaker, I yield 2 minutes to the gentleman from 
Rhode Island (Mr. Langevin).
  Mr. LANGEVIN. Mr. Speaker, today I rise in support of H.R. 4070, the 
Social Security Program Protection Act, which will provide new 
safeguards for the nearly 7 million Social Security and SSI 
beneficiaries who use a representative payee to receive their benefits.
  Social Security is among the most important and successful Federal 
programs ever created. In my home district alone, 110,000 people rely 
on this critical safety net for their livelihood.
  When I was elected to Congress, I promised these Rhode Islanders that 
I would protect Social Security. While I am pleased by the 
consideration of H.R. 4070, I would be remiss if I did not voice any 
adamant opposition to the Republican leadership's privatization 
proposals which would jeopardize the benefits to which our Nation's 
seniors are entitled by subjecting them to the whims of the financial 
markets.
  I urge Members to support this important legislation and to reject 
privatization proposals which fail to guarantee the continuation of 
benefits to the most vulnerable among us.
  Mr. MATSUI. Mr. Speaker, I yield 3 minutes to the gentlewoman from 
North Carolina (Mrs. Clayton), who is retiring at the end of this 
Congress.
  Mrs. CLAYTON. Mr. Speaker, I thank the gentleman for yielding me this 
time. I thank the gentleman from Florida (Mr. Shaw), as well as all 
Members, for this bill. I support this bill as a Democrat; but I oppose 
the undemocratic process, spelled with a small ``d.'' I support it 
because it is much needed; however, I oppose the process by which this 
bill comes to the floor. It did not allow many of the minority issues 
to come to the floor.
  I support the bill because it really is an important bill. It added a 
lot of administrative provisions that are needed. It provides 
opportunity to assist loved ones manage their finances. It is an 
important bill that we all support.
  But making these important, but modest, improvements to 
administrative procedures for the Social Security program is not what 
the American people expect. They really expect more of the Members of 
Congress and the President to provide, indeed, a reform of Social 
Security. We can and we should do much more.
  In 2000, both Republican and Democratic candidates for the 
Presidency, as well as Members of the House and Senate, all said we 
were about strengthening Social Security; we would protect the Social 
Security trust fund; we would keep faith with our seniors and future 
generations. All of us without exception, both parties, were for 
protecting Social Security. A lot of talk was about the lockbox. There 
was a lot of legislation about the lockbox. We have voted on the 
lockbox. This indeed has now become a shell game instead of protecting 
it.
  Why? That is a good question with a sad answer. Well, we should be 
protecting Social Security. If we can afford to have a tax bill that 
favors the wealthy, although we are adding new responsibilities, we 
need to protect our security. We should do more. I understand these are 
stressful times. We need to provide for homeland security, but we can 
do more.
  There are additional bills that need to be brought forward. The 
majority bill does not address these programs. The minority had a 
discharge procedure so we could have a full debate. Some are asking why 
are we not bringing up the privatization bill. That is so fundamental 
to the structure and the survival of Social Security. Indeed, Social 
Security is one program that seniors are looking for us to protect. I 
urge support for this bill. It is worthy, but it is unworthy as to what 
we are not doing. I urge Congress to do more for the seniors of 
America.
  Mr. Speaker, today I rise as a democrat--spelled with a small ``d''--
in support of House Resolution Forty Seventy (H.R. 4070), The Social 
Security Program Protection Act of 2002; but oppose the process by 
which this bill comes to the floor for debate--in a manner most un-
democratic, further encroaching on the minority's rights.
  I support this bill because it adds important protections for people 
who, due to advanced age, infirmity or disability, could use the 
assistance of a loved one or a community service organization to manage 
their finances. It also strengthens antifraud provisions . . . and this 
I support very much.
  But making modest improvements to administrative procedures for the 
Social Security Program is NOT what the American people expect of the 
House, the Senate, or the President of the United States. We can and 
should do such.
  In 2000, both the Republican and Democratic candidates for the 
presidency--as well as members of the House and Senate--campaigned on a 
promise to safeguard, secure and enhance the life of the Social 
Security Trust Fund, and to keep faith with our seniors and future 
generations. There was a lot of talk of a lock-box, and we have voted 
several times on this lock-box, which has instead become a shell-game 
sham.
  Why? That's a good question with a sad answer.
  Having passed a tax bill weighted in favor of the wealthiest 
individuals and well-heeled corporations, the majority have taken us 
``back to the future''--of deficit spending and an increase in the debt 
ceiling--another issue they don't want to debate.
  I am not up for re-election in November . . . but I think the 
American people have a right to ask why--with two years having gone 
by--the majority has failed to reform Social Security and to protect 
the Social Security Trust Fund. They have a right to wonder why the 
future of Social Security is not

[[Page 11236]]

being debated on this floor at this very moment.
  Instead, the majority has only addressed program administrative 
issues through bills like the one before us, yet they refuse to deal 
with the most overarching administrative issue: the lack of adequate 
funding to provide the customer services that workers have already paid 
for through their FICA contributions.
  Rather than having a real debate on important issues, the majority 
are closing down debate. They have refused to even bring up their 
privatization bills--bills which have been introduced by the leaders of 
their party. Democratic members recently filed a discharge petition to 
try to force debate on this issue and provide for some legislative 
remedies before the election.
  The public has a right to know about the true effects of 
privatization--cuts in guaranteed benefits, massive raids on the Social 
Security Trust Funds, huge subsidies for those who have private 
accounts, and the threat that privatization poses to the ability of the 
system to keep paying benefits to today's retirees.
  The future of Social Security and the retirement income of millions 
of Americans are too important not to debate and act on. I implore my 
friends on the other side of the aisle to do the right thing--let's 
debate this before the election, so the American people can make an 
informed choice.
  Mr. MATSUI. Mr. Speaker, I yield 2\1/2\ minutes to the gentlewoman 
from Florida (Mrs. Thurman), a member of the Committee on Ways and 
Means.
  Mrs. THURMAN. Mr. Speaker, I thank the gentleman for yielding me this 
time.
  Mr. Speaker, I commend the Committee on Ways and Means for bringing 
forward this legislation, H.R. 4070, today. I have heard the debate 
this afternoon about folks that have been injured because of the 
misuses. And people that have been taken advantage of by folks that in 
fact should not be taken advantage of, are those whom I believe are our 
most fragile and needed members of our society, and those are those who 
receive Social Security.
  I would say on the other side of this, and I know this is a series of 
pieces of legislation that we have been dealing with in Social 
Security, and I noted that we have been talking about some legislation 
that was passed a couple of weeks ago to help women and others, and I 
believe that begs the question that there are issues within our Social 
Security system that we ought to be looking at.
  Another area that I have great concern over is in the area of 
disability, how many folks and how long it takes for them to receive 
disability, and the idea that so many people will end up losing their 
homes and cars before we get any place.
  I am very supportive of the discharge petition that this House has 
the opportunity to sign. It would give us a full and thorough debate on 
the issues of Social Security and particularly on the issues that have 
been brought forward by the commission and other Members of this House 
on ways that they think privatization would, in fact, be better. I 
think we should have that debate.
  When I say that, I would also like to say that I think there are six 
areas that I feel very strongly about, and I would just like to list 
those six issues. I think it increases the financial risk for Social 
Security beneficiaries, requiring potentially severe cuts in benefits, 
the harm on women, harm on minorities, and undermining Social Security 
disability and survivor's benefits; and I believe it would eat away at 
the value of workers' accounts and significantly reduce the payments 
that they would receive from them.
  Mr. Speaker, while I favor the antifraud provisions in H.R. 4070, I 
hope we have an opportunity to look at all of Social Security and the 
concerns that we have.
  Mr. MATSUI. Mr. Speaker, I yield 1 minute to the gentleman from North 
Carolina (Mr. Etheridge).
  Mr. ETHERIDGE. Mr. Speaker, I rise in support of H.R. 4070, the 
Social Security Program Protection Act. It provides and contains 
important protections for those folks who need assistance managing 
their financial affairs. It also improves access to legal 
representation for disability claimants and strengthens protections 
against fraud.
  Mr. Speaker, we should also be debating the Republican leadership's 
plan to privatize Social Security. Social Security represents a compact 
with our seniors that says if they work hard all their life, they will 
not spend their golden years in poverty. We have no right to break 
that. No one has a right. I am willing to roll up my sleeves and work 
with anyone who is willing to do it; but privatization will not save 
Social Security. In fact, it jeopardizes the retirement security of our 
seniors and working families. Privatization of Social Security will 
destroy the system's financial stability, and threaten the benefits of 
millions of seniors, disabled Americans, and their families.

                              {time}  1530

  I urge my colleagues to support this bill. I hope this is not the 
last Social Security debate we have on this floor this year.
  I urge my colleagues to support H.R. 4070, and am hopeful that this 
will not be the last Social Security debate we have this year. I call 
on my colleagues to demand an open debate on the Republican 
privatization plans, and urge them to join me in working to protect 
Social Security's promise to America by opposing privatization.
  Mr. MATSUI. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  Mr. SHAW. Mr. Speaker, I yield myself such time as I may consume.
  Very briefly, I would like to close with just a few observations. I 
would like to commend both sides of the aisle for I think a very good 
and factual debate, looking at the legislation and showing that there 
are areas pertaining to Social Security where we can come together.
  I think a few things, though, need to be said in response to some of 
the arguments that I have heard from the other side of the aisle. I 
think the gentlewoman from North Carolina, and I think she has left the 
floor now, brings a certain level of common sense to this debate that I 
think should be listened to. I think she is going to be missed, and I 
am very sorry that she is retiring as a member of the minority party in 
this Chamber.
  There have been some comments regarding raiding the Social Security 
trust fund. I think it is very important that Congress exercise self-
control and not spend the Social Security surplus. But I think the 
American people have to know that the Social Security trust fund 
contains promises, not dollars. Those promises are in the form of 
Treasury bills. Those promises stay there, they are not taken from the 
Social Security trust fund, and nobody can debate that issue.
  But it is debatable, and I think it is something of great concern to 
both political parties here, that we do have a concern as to the 
expenditures which are going into the Social Security surplus. I think 
it is a goal of both political parties to stop spending that surplus as 
soon as we get through this war effort, as soon as we get totally out 
of this recession and as soon as we rebuild after the natural disaster 
that we had in New York. There is a question of debate on that. Whether 
we can say it is because of overspending or undertaxing, I think the 
question is certainly debatable and is subject to debate.
  But nobody should stand before this Congress or before the American 
people and say we are raiding the Social Security trust fund which only 
has promises. It does not have dollars.
  But, also, I think it is important to realize that, in going forward 
to decide what exactly we are going to do with Social Security, when we 
are coming together; and I would say to the members of the minority 
side who are trying to get some kind of a discharge petition to get 
their interpretation of the President's bill before this Congress or 
getting the two or three other bills before the Congress to have an 
open debate on it, as soon as I sense any real feeling on the minority 
party that they want to solve the problem rather than taking a few 
bills, some fictitious and some real, and crafting them into weapons, 
as soon as I get the sense that they want to move ahead, I am prepared 
to move ahead, because I think it is very important.
  I am concerned about my grandkids. I have a grandchild by the name of

[[Page 11237]]

Wyatt who lives in DeLand, Florida. He is 13 years old. He is going to 
face benefit cuts of 28 percent by the time he is 62 years old. He will 
get less than $3 for every $4 of benefits that are promised to him. We 
have got to remember we do not only represent seniors of today. We 
represent our kids and our grandkids. If we are going to take $1 out of 
every $4 that they are entitled to receive, that is, I think, a 
national tragedy and that is something that is certainly less and far 
below the mission for which the American people sent us here to the 
Congress. They did not send us here to misrepresent facts, they did not 
send us here to hold steady to political beliefs, and they did not send 
us here, frankly, to privatize Social Security.
  And no one is trying to privatize Social Security. In fact, the bill 
that I have filed leaves the Social Security system totally intact. It 
does not touch $1 of it, and it saves Social Security for all time 
according to the Clinton administration as well as according to the 
current administration.
  Mr. Speaker, again, I would like to thank this Chamber and Members of 
both sides of the aisle for the debate that we had. I apologize for my 
voice, but I am in about the third or fourth day of a cold which I am 
hopeful that it is no longer contagious.
  Mr. GILMAN. Mr. Speaker, I rise today in strong support of H.R. 4070, 
the Social Security Program Protection Act of 2002. I urge my 
colleagues to support this badly needed measure.
  Every year, Social Security provides benefits to over 50 million 
retired and disabled workers, their families and SSI recipients. Of 
this total, more than 7 million are beneficiaries who cannot manage 
their own financial affairs and have a ``Representative Payee'' 
appointed to guard their monthly benefits.
  While the majority of these arrangements are above board, a 
significant number are subject to fraud and abuse. In these cases, the 
beneficiary is being cheated out of their Social Security income, which 
they desperately need, and the taxpayers are being cheated by 
government funds being diverted to unauthorized recipients.
  This legislation protects vulnerable beneficiaries by tightening 
oversight and regulation of the ``Representative Payee'' system. 
Penalties for the misuse of the system are enhanced, and new 
regulations governing who is eligible for a ``Representative Payee'' 
status are further qualified by prohibiting anyone convicted and 
imprisoned for more than one year from serving in this capacity. 
Moreover, this measure permits the reissuance of benefits to 
individuals who have been cheated by their ``Representative Payee,'' 
and further directs that the recovery of misused benefits from those 
persons may be undertaken.
  This measure also makes a number of modifications to shore up the 
integrity of the Social Security system by denying benefits to fugitive 
felons, imposing penalties on recipients who fail to notify SSA of any 
change in their status and clarifies which attorneys the SS 
commissioner may refuse to recognize in the handling of specific cases.
  Mr. Speaker, this measure helps protect the interests of those who 
are unable to manage their financial affairs, including their Social 
Security benefits. In doing this, it addresses an unmet need. 
Accordingly, I strongly support its passage.
  Mr. CRANE. Mr. Speaker, I rise today in support of the Social 
Security Program Protection Act of 2002.
  This legislation gives the Social Security Administration the 
enhanced tools it needs to help fight fraud and abuse activities that 
drain program resources and undermine the financial security of 
beneficiaries.
  This legislation also helps individuals with disabilities gain access 
to representation to help them navigate through complex application 
process to receive benefit.
  Preliminary CBO estimates show this legislation saves the budget $534 
million over 10 years.
  The program protections and improvements in this bill are bipartisan 
and have the support of the Federal Bar Association, the Association of 
Administrative Law Judges, and the National Organization of Social 
Security Claimants' Representatives.
  I am saddened that the minority has spent today in the same manner 
they usually choose to spend very other October: scaring our senior 
citizens.
  It is easy for the minority to sit back and cry foul, but I would ask 
all of my colleagues the following questions: has the minority done 
anything but misrepresent our plans to save Social Security?
       Have they come to the table with any serious ideas 
     themselves on how to save the program?
  The answer to this question, regrettably, is ``no.''
  Mr. DAVIS of Illinois. Mr. Speaker, I rise in support of H.R. 4070, 
the Social Security Program Protection Act of 2002. This legislation 
provides needed safeguards for the over 6 million Social Security and 
Supplemental Security Income beneficiaries who cannot manage their own 
financial affairs and need a ``representative Payee.'' I fully support 
increased oversight of Representative Payees to prevent abuse, and the 
mis-allocation of taxpayer money. I also agree with this bill's 
provision that allows for the re-issuance of benefit payments that have 
been taken from the rightful beneficiaries and the recovery of these 
funds from unscrupulous Representative Payees.
  I want to underscore the importance of one of the items in the bill's 
final section containing miscellaneous and technical provisions. This 
is the provision that improves the effectiveness of the Ticket to Work 
and Work Incentives Improvement Act of 1999. It will ensure that 
employers who hire individuals with disabilities through referral by an 
employer network also qualify for the Work Opportunity Tax Credit. 
Americans with disabilities experience an unemployment rate of 70 
percent, and we must do everything in our power to make sure that 
incentives exist to open the doors of opportunity wider to these 
individuals.
  Finally, I want to draw attention to this bill's provision that 
disqualifies those who have been convicted and imprisoned more than a 
year from serving as Representative Payees. The bill also allows the 
Commissioner of Social Security to exercise judgment in determining 
cases where certain ex-offenders may be certified as Representative 
Payees despite this prohibition. While we must do everything possible 
to protect Social Security and Supplemental Security Income 
beneficiaries from being taken advantage of by unscrupulous 
individuals, we also must not unjustly condemn ex-offenders who have 
paid their dues and need to re-gain their ability to participate fully 
in society.
  Mr. SHAW. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Linder). The question is on the motion 
offered by the gentleman from Florida (Mr. Shaw) that the House suspend 
the rules and pass the bill, H.R. 4070, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of 
those present have voted in the affirmative.
  Mr. SHAW. Mr. Speaker, I object to the vote on the ground that a 
quorum is not present and make the point of order that a quorum is not 
present.
  The SPEAKER pro tempore. Pursuant to clause 8 rule XX and the Chair's 
prior announcement, further proceedings on this motion will be 
postponed.
  The point of no quorum is considered withdrawn.

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