[Congressional Record (Bound Edition), Volume 150 (2004), Part 2]
[House]
[Pages 1591-1613]
[From the U.S. Government Publishing Office, www.gpo.gov]




                 SOCIAL SECURITY PROTECTION ACT OF 2003

  Mr. SHAW. Mr. Speaker, pursuant to House Resolution 520, I call up 
from the Speaker's table the bill (H.R. 743) to amend the Social 
Security Act and the Internal Revenue Code of 1986 to provide 
additional safeguards for Social Security and Supplemental Security 
Income beneficiaries with representative payees, to enhance program 
protections, and for other purposes, with a Senate amendment thereto, 
and ask for its immediate consideration.
  The Clerk read the title of the bill.
  The text of the Senate amendment is as follows:

       Senate Amendment:
       Strike out all after the enacting clause and insert:

     SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Social 
     Security Protection Act of 2003''.
       (b) Table of Contents.--The table of contents is as 
     follows:

Sec. 1. Short title and table of contents.

                  TITLE I--PROTECTION OF BENEFICIARIES

                   Subtitle A--Representative Payees

Sec. 101. Authority to reissue benefits misused by organizational 
              representative payees.
Sec. 102. Oversight of representative payees.
Sec. 103. Disqualification from service as representative payee of 
              persons convicted of offenses resulting in imprisonment 
              for more than 1 year or fleeing prosecution, custody, or 
              confinement.
Sec. 104. Fee forfeiture in case of benefit misuse by representative 
              payees.
Sec. 105. Liability of representative payees for misused benefits.
Sec. 106. Authority to redirect delivery of benefit payments when a 
              representative payee fails to provide required 
              accounting.
Sec. 107. Survey of use of payments by representative payees.

                        Subtitle B--Enforcement

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

                     TITLE II--PROGRAM PROTECTIONS

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

   TITLE III--ATTORNEY REPRESENTATIVE FEE PAYMENT SYSTEM IMPROVEMENTS

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

            TITLE IV--MISCELLANEOUS AND TECHNICAL AMENDMENTS

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

Sec. 401. Application of demonstration authority sunset date to new 
              projects.
Sec. 402. Expansion of waiver authority available in connection with 
              demonstration projects providing for reductions in 
              disability insurance benefits based on earnings.
Sec. 403. Funding of demonstration projects providing for reductions in 
              disability insurance benefits based on earnings.
Sec. 404. Availability of Federal and State work incentive services to 
              additional individuals.

[[Page 1592]]

Sec. 405. Technical amendment clarifying treatment for certain purposes 
              of individual work plans under the Ticket to Work and 
              Self-Sufficiency Program.
Sec. 406. GAO study regarding the Ticket to Work and Self-Sufficiency 
              Program.
Sec. 407. Reauthorization of appropriations for certain work incentives 
              programs.

                  Subtitle B--Miscellaneous Amendments

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

                    Subtitle C--Technical Amendments

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

              Subtitle D--Amendments Related to Title XVI

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

                  TITLE I--PROTECTION OF BENEFICIARIES

                   Subtitle A--Representative Payees

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

       (a) Title II Amendments.--
       (1) Reissuance of benefits.--Section 205(j)(5) of the 
     Social Security Act (42 U.S.C. 405(j)(5)) is amended by 
     inserting after the first sentence the following: ``In any 
     case in which a representative payee that--
       ``(A) is not an individual (regardless of whether it is a 
     `qualified organization' within the meaning of paragraph 
     (4)(B)); or
       ``(B) is an individual who, for any month during a period 
     when misuse occurs, serves 15 or more individuals who are 
     beneficiaries under this title, title VIII, title XVI, or any 
     combination of such titles;

     misuses all or part of an individual's benefit paid to such 
     representative payee, the Commissioner of Social Security 
     shall certify for payment to the beneficiary or the 
     beneficiary's alternative representative payee an amount 
     equal to the amount of such benefit so misused. The 
     provisions of this paragraph are subject to the limitations 
     of paragraph (7)(B).''.
       (2) Misuse of benefits defined.--Section 205(j) of such Act 
     (42 U.S.C. 405(j)) is amended by adding at the end the 
     following:
       ``(8) For purposes of this subsection, misuse of benefits 
     by a representative payee occurs in any case in which the 
     representative payee receives payment under this title for 
     the use and benefit of another person and converts such 
     payment, or any part thereof, to a use other than for the use 
     and benefit of such other person. The Commissioner of Social 
     Security may prescribe by regulation the meaning of the term 
     `use and benefit' for purposes of this paragraph.''.
       (b) Title VIII Amendments.--
       (1) Reissuance of benefits.--Section 807(i) of the Social 
     Security Act (42 U.S.C. 1007(i)) is amended further by 
     inserting after the first sentence the following: ``In any 
     case in which a representative payee that--
       ``(A) is not an individual; or
       ``(B) is an individual who, for any month during a period 
     when misuse occurs, serves 15 or more individuals who are 
     beneficiaries under this title, title II, title XVI, or any 
     combination of such titles;

     misuses all or part of an individual's benefit paid to such 
     representative payee, the Commissioner of Social Security 
     shall pay to the beneficiary or the beneficiary's alternative 
     representative payee an amount equal to the amount of such 
     benefit so misused. The provisions of this paragraph are 
     subject to the limitations of subsection (l)(2).''.
       (2) Misuse of benefits defined.--Section 807 of such Act 
     (42 U.S.C. 1007) is amended by adding at the end the 
     following:
       ``(j) Misuse of Benefits.--For purposes of this title, 
     misuse of benefits by a representative payee occurs in any 
     case in which the representative payee receives payment under 
     this title for the use and benefit of another person under 
     this title and converts such payment, or any part thereof, to 
     a use other than for the use and benefit of such person. The 
     Commissioner of Social Security may prescribe by regulation 
     the meaning of the term `use and benefit' for purposes of 
     this subsection.''.
       (3) Technical amendment.--Section 807(a) of such Act (42 
     U.S.C. 1007(a)) is amended, in the first sentence, by 
     striking ``for his or her benefit'' and inserting ``for his 
     or her use and benefit''.
       (c) Title XVI Amendments.--
       (1) Reissuance of benefits.--Section 1631(a)(2)(E) of such 
     Act (42 U.S.C. 1383(a)(2)(E)) is amended by inserting after 
     the first sentence the following: ``In any case in which a 
     representative payee that--
       ``(i) is not an individual (regardless of whether it is a 
     `qualified organization' within the meaning of subparagraph 
     (D)(ii)); or
       ``(ii) is an individual who, for any month during a period 
     when misuse occurs, serves 15 or more individuals who are 
     beneficiaries under this title, title II, title VIII, or any 
     combination of such titles;

     misuses all or part of an individual's benefit paid to such 
     representative payee, the Commissioner of Social Security 
     shall pay to the beneficiary or the beneficiary's alternative 
     representative payee an amount equal to the amount of such 
     benefit so misused. The provisions of this subparagraph are 
     subject to the limitations of subparagraph (H)(ii).''.
       (2) Exclusion of reissued benefits from resources.--Section 
     1613(a) of such Act (42 U.S.C. 1382b(a)) is amended--
       (A) in paragraph (12), by striking ``and'' at the end;
       (B) in paragraph (13), by striking the period and inserting 
     ``; and''; and
       (C) by inserting after paragraph (13) the following:
       ``(14) for the 9-month period beginning after the month in 
     which received, any amount received by such individual (or 
     spouse) or any other person whose income is deemed to be 
     included in such individual's (or spouse's) income for 
     purposes of this title as restitution for benefits under this 
     title, title II, or title VIII that a representative payee of 
     such individual (or spouse) or such other person under 
     section 205(j), 807, or 1631(a)(2) has misused.''.
       (3) Misuse of benefits defined.--Section 1631(a)(2)(A) of 
     such Act (42 U.S.C. 1383(a)(2)(A)) is amended by adding at 
     the end the following:
       ``(iv) For purposes of this paragraph, misuse of benefits 
     by a representative payee occurs in any case in which the 
     representative payee receives payment under this title for 
     the use and benefit of another person and converts such 
     payment, or any part thereof, to a use other than for the use 
     and benefit of such other person. The Commissioner of Social 
     Security may prescribe by regulation the meaning of the term 
     `use and benefit' for purposes of this clause.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to any case of benefit misuse by a representative 
     payee with respect to which the Commissioner of Social 
     Security makes the determination of misuse on or after 
     January 1, 1995.

     SEC. 102. OVERSIGHT OF REPRESENTATIVE PAYEES.

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

[[Page 1593]]

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

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

       (a) Title II Amendments.--Section 205(j)(2) of the Social 
     Security Act (42 U.S.C. 405(j)(2)) is amended--
       (1) in subparagraph (B)(i)--
       (A) by striking ``and'' at the end of subclause (III);
       (B) by redesignating subclause (IV) as subclause (VI); and
       (C) by inserting after subclause (III) the following:
       ``(IV) obtain information concerning whether such person 
     has been convicted of any other offense under Federal or 
     State law which resulted in imprisonment for more than 1 
     year,
       ``(V) obtain information concerning whether such person is 
     a person described in section 202(x)(1)(A)(iv), and'';
       (2) in subparagraph (B), by adding at the end the 
     following:
       ``(iii) Notwithstanding the provisions of section 552a of 
     title 5, United States Code, or any other provision of 
     Federal or State law (other than section 6103 of the Internal 
     Revenue Code

[[Page 1594]]

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

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

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

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

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

[[Page 1595]]

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

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

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

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

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

                        Subtitle B--Enforcement

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

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

                     TITLE II--PROGRAM PROTECTIONS

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

       (a) Treatment of Withholding of Material Facts.--
       (1) Civil penalties.--Section 1129(a)(1) of the Social 
     Security Act (42 U.S.C. 1320a-8(a)(1)) is amended--
       (A) by striking ``who'' in the first sentence and inserting 
     ``who--'';
       (B) by striking ``makes'' in the first sentence and all 
     that follows through ``shall be subject to,'' and inserting 
     the following:
       ``(A) makes, or causes to be made, a statement or 
     representation of a material fact, for use in determining any 
     initial or continuing right to or the amount of monthly 
     insurance benefits under title II or benefits or payments 
     under title VIII or XVI, that the person knows or should know 
     is false or misleading,
       ``(B) makes such a statement or representation for such use 
     with knowing disregard for the truth, or
       ``(C) omits from a statement or representation for such 
     use, or otherwise withholds disclosure of, a fact which the 
     person knows or should know is material to the determination 
     of any initial or continuing right to or the amount of 
     monthly insurance benefits under title II or benefits or 
     payments under title VIII or XVI, if the person knows, or 
     should know, that the statement or representation with such 
     omission is false or misleading or that the withholding of 
     such disclosure is misleading,

     shall be subject to,'';
       (C) by inserting ``or each receipt of such benefits or 
     payments while withholding disclosure of such fact'' after 
     ``each such statement or representation'' in the first 
     sentence;
       (D) by inserting ``or because of such withholding of 
     disclosure of a material fact'' after ``because of such 
     statement or representation'' in the second sentence; and
       (E) by inserting ``or such a withholding of disclosure'' 
     after ``such a statement or representation'' in the second 
     sentence.
       (2) Administrative procedure for imposing penalties.--
     Section 1129A(a) of such Act (42 U.S.C. 1320a-8a(a)) is 
     amended--
       (A) by striking ``who'' the first place it appears and 
     inserting ``who--''; and
       (B) by striking ``makes'' and all that follows through 
     ``shall be subject to,'' and inserting the following:

[[Page 1596]]

       ``(1) makes, or causes to be made, a statement or 
     representation of a material fact, for use in determining any 
     initial or continuing right to or the amount of monthly 
     insurance benefits under title II or benefits or payments 
     under title XVI that the person knows or should know is false 
     or misleading,
       ``(2) makes such a statement or representation for such use 
     with knowing disregard for the truth, or
       ``(3) omits from a statement or representation for such 
     use, or otherwise withholds disclosure of, a fact which the 
     person knows or should know is material to the determination 
     of any initial or continuing right to or the amount of 
     monthly insurance benefits under title II or benefits or 
     payments under title XVI, if the person knows, or should 
     know, that the statement or representation with such omission 
     is false or misleading or that the withholding of such 
     disclosure is misleading,

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

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

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

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

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

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

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

[[Page 1597]]

       (b) Effective Date.--The amendments made by this section 
     shall apply to offers of assistance made after the sixth 
     month ending after the Commissioner of Social Security 
     promulgates final regulations prescribing the standards 
     applicable to the notice required to be provided in 
     connection with such offer. The Commissioner shall promulgate 
     such final regulations within 1 year after the date of the 
     enactment of this Act.

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

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

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

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


   ``ATTEMPTS TO INTERFERE WITH ADMINISTRATION OF SOCIAL SECURITY ACT

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

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

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

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

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

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

     SEC. 209. AUTHORITY FOR JUDICIAL ORDERS OF RESTITUTION.

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

[[Page 1598]]

       (1) by redesignating subsection (b) as subsection (c); and
       (2) by inserting after subsection (a) the following:
       ``(b)(1) Any Federal court, when sentencing a defendant 
     convicted of an offense under subsection (a), may order, in 
     addition to or in lieu of any other penalty authorized by 
     law, that the defendant make restitution to the Commissioner 
     of Social Security, in any case in which such offense results 
     in--
       ``(A) the Commissioner of Social Security making a benefit 
     payment that should not have been made, or
       ``(B) an individual suffering a financial loss due to the 
     defendant's violation of subsection (a) in his or her 
     capacity as the individual's representative payee appointed 
     pursuant to section 1631(a)(2).
       ``(2) Sections 3612, 3663, and 3664 of title 18, United 
     States Code, shall apply with respect to the issuance and 
     enforcement of orders of restitution under this subsection. 
     In so applying such sections, the Commissioner of Social 
     Security shall be considered the victim.
       ``(3) If the court does not order restitution, or orders 
     only partial restitution, under this subsection, the court 
     shall state on the record the reasons therefor.
       ``(4)(A) Except as provided in subparagraph (B), funds paid 
     to the Commissioner of Social Security as restitution 
     pursuant to a court order shall be deposited as miscellaneous 
     receipts in the general fund of the Treasury.
       ``(B) In the case of funds paid to the Commissioner of 
     Social Security pursuant to paragraph (1)(B), the 
     Commissioner of Social Security shall certify for payment to 
     the individual described in such paragraph an amount equal to 
     the lesser of the amount of the funds so paid or the 
     individual's outstanding financial loss as described in such 
     paragraph, except that such amount may be reduced by any 
     overpayment of benefits owed under this title, title II, or 
     title VIII by the individual.''; and
       (3) by amending subsection (c) (as redesignated by 
     paragraph (1)) by striking ``(1) If a person'' and all that 
     follows through ``(2)''.
       (d) Effective Date.--The amendments made by subsections 
     (a), (b), and (c) shall apply with respect to violations 
     occurring on or after the date of enactment of this Act.

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

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


         ``cross-program recovery of overpayments from benefits

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

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

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

[[Page 1599]]



   TITLE III--ATTORNEY REPRESENTATIVE FEE PAYMENT SYSTEM IMPROVEMENTS

     SEC. 301. CAP ON ATTORNEY ASSESSMENTS.

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

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

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

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

       (a) In General.--The Commissioner of Social Security 
     (hereafter in this section referred to as the 
     ``Commissioner'') shall develop and carry out a nationwide 
     demonstration project under this section with respect to 
     agents and other persons, other than attorneys, who represent 
     claimants under titles II and XVI of the Social Security Act 
     before the Commissioner. The demonstration project shall be 
     designed to determine the potential results of extending to 
     such representatives the fee withholding procedures and 
     assessment procedures that apply under sections 206 and 
     section 1631(d)(2) of such Act to attorneys seeking direct 
     payment out of past due benefits under such titles and shall 
     include an analysis of the effect of such extension on 
     claimants and program administration.
       (b) Standards for Inclusion in Demonstration Project.--Fee-
     withholding procedures may be extended under the 
     demonstration project carried out pursuant to subsection (a) 
     to any non-attorney representative only if such 
     representative meets at least the following prerequisites:
       (1) The representative has been awarded a bachelor's degree 
     from an accredited institution of higher education, or has 
     been determined by the Commissioner to have equivalent 
     qualifications derived from training and work experience.
       (2) The representative has passed an examination, written 
     and administered by the Commissioner, which tests knowledge 
     of the relevant provisions of the Social Security Act and the 
     most recent developments in agency and court decisions 
     affecting titles II and XVI of such Act.
       (3) The representative has secured professional liability 
     insurance, or equivalent insurance, which the Commissioner 
     has determined to be adequate to protect claimants in the 
     event of malpractice by the representative.
       (4) The representative has undergone a criminal background 
     check to ensure the representative's fitness to practice 
     before the Commissioner.
       (5) The representative demonstrates ongoing completion of 
     qualified courses of continuing education, including 
     education regarding ethics and professional conduct, which 
     are designed to enhance professional knowledge in matters 
     related to entitlement to, or eligibility for, benefits based 
     on disability under titles II and XVI of such Act. Such 
     continuing education, and the instructors providing such 
     education, shall meet such standards as the Commissioner may 
     prescribe.
       (c) Assessment of Fees.--
       (1) In general.--The Commissioner may assess 
     representatives reasonable fees to cover the

[[Page 1600]]

     cost to the Social Security Administration of administering 
     the prerequisites described in subsection (b).
       (2) Disposition of fees.--Fees collected under paragraph 
     (1) shall be credited to the Federal Old-Age and Survivors 
     Insurance Trust Fund and the Federal Disability Insurance 
     Trust Fund, or deposited as miscellaneous receipts in the 
     general fund of the Treasury, based on such allocations as 
     the Commissioner of Social Security determines appropriate.
       (3) Authorization of appropriations.--The fees authorized 
     under this subparagraph shall be collected and available for 
     obligation only to the extent and in the amount provided in 
     advance in appropriations Acts. Amounts so appropriated are 
     authorized to remain available until expended for 
     administering the prerequisites described in subsection (b).
       (d) Notice to Congress and Applicability of Fee Withholding 
     Procedures.--Not later than 1 year after the date of 
     enactment of this Act, the Commissioner shall complete such 
     actions as are necessary to fully implement the requirements 
     for full operation of the demonstration project and shall 
     submit to each House of Congress a written notice of the 
     completion of such actions. The applicability under this 
     section to non-attorney representatives of the fee 
     withholding procedures and assessment procedures under 
     sections 206 and 1631(d)(2) of the Social Security Act shall 
     be effective with respect to fees for representation of 
     claimants in the case of claims for benefits with respect to 
     which the agreement for representation is entered into by 
     such non-attorney representatives during the period beginning 
     with the date of the submission of such notice by the 
     Commissioner to Congress and ending with the termination date 
     of the demonstration project.
       (e) Reports by the Commissioner; Termination.--
       (1) Interim reports.--On or before the date which is 1 year 
     after the date of enactment of this Act, and annually 
     thereafter, the Commissioner shall transmit to the Committee 
     on Ways and Means of the House of Representatives and to the 
     Committee on Finance of the Senate an annual interim report 
     on the progress of the demonstration project carried out 
     under this section, together with any related data and 
     materials that the Commissioner may consider appropriate.
       (2) Termination date and final report.--The termination 
     date of the demonstration project under this section is the 
     date which is 5 years after the date of the submission of the 
     notice by the Commissioner to each House of Congress pursuant 
     to subsection (d). The authority under the preceding 
     provisions of this section shall not apply in the case of 
     claims for benefits with respect to which the agreement for 
     representation is entered into after the termination date. 
     Not later than 90 days after the termination date, the 
     Commissioner shall submit to the Committee on Ways and Means 
     of the House of Representatives and to the Committee on 
     Finance of the Senate a final report with respect to the 
     demonstration project.

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

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

            TITLE IV--MISCELLANEOUS AND TECHNICAL AMENDMENTS

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

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

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

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

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

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

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

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

       (a) Federal Work Incentives Outreach Program.--
       (1) In general.--Section 1149(c)(2) of the Social Security 
     Act (42 U.S.C. 1320b-20(c)(2)) is amended to read as follows:
       ``(2) Disabled beneficiary.--The term `disabled 
     beneficiary' means an individual--
       ``(A) who is a disabled beneficiary as defined in section 
     1148(k)(2) of this Act;
       ``(B) who is receiving a cash payment described in section 
     1616(a) of this Act or a supplementary payment described in 
     section 212(a)(3) of Public Law 93-66 (without regard to 
     whether such payment is paid by the Commissioner pursuant to 
     an agreement under section 1616(a) of this Act or under 
     section 212(b) of Public Law 93-66);
       ``(C) who, pursuant to section 1619(b) of this Act, is 
     considered to be receiving benefits under title XVI of this 
     Act; or
       ``(D) who is entitled to benefits under part A of title 
     XVIII of this Act by reason of the penultimate sentence of 
     section 226(b) of this Act.''.

[[Page 1601]]

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

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

       (a) In General.--Section 1148(g)(1) of the Social Security 
     Act (42 U.S.C. 1320b-19(g)(1)) is amended by adding at the 
     end, after and below subparagraph (E), the following:

     ``An individual work plan established pursuant to this 
     subsection shall be treated, for purposes of section 
     51(d)(6)(B)(i) of the Internal Revenue Code of 1986, as an 
     individualized written plan for employment under a State plan 
     for vocational rehabilitation services approved under the 
     Rehabilitation Act of 1973.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect as if included in section 505 of the Ticket 
     to Work and Work Incentives Improvement Act of 1999 (Public 
     Law 106-170; 113 Stat. 1921).

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

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

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

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

                  Subtitle B--Miscellaneous Amendments

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

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

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

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

     SEC. 413. REINSTATEMENT OF CERTAIN REPORTING REQUIREMENTS.

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

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

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

[[Page 1602]]

     husband due to mental incompetence or similar incapacity,
       ``(C) during the period of the prior husband's 
     institutionalization, the individual would have divorced the 
     prior husband and married the surviving husband, but the 
     individual did not do so because such divorce would have been 
     unlawful, by reason of the prior husband's 
     institutionalization, under the laws of the State in which 
     the individual was domiciled at the time (as determined based 
     on evidence satisfactory to the Commissioner of Social 
     Security),
       ``(D) the prior husband continued to remain 
     institutionalized up to the time of his death, and
       ``(E) the individual married the surviving husband within 
     60 days after the prior husband's death.''.
       (c) Conforming Amendment.--Section 216(k) of such Act (42 
     U.S.C. 416(k)) is amended by striking ``clause (5) of 
     subsection (c) or clause (5) of subsection (g)'' and 
     inserting ``clause (E) of subsection (c)(1) or clause (E) of 
     subsection (g)(1)''.
       (d) Effective Date.--The amendments made by this section 
     shall be effective with respect to applications for benefits 
     under title II of the Social Security Act filed during months 
     ending after the date of the enactment of this Act.

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

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

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

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

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

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

                 ``Compensation, Expenses, and Per Diem

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

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

       (a) In General.--Section 202(k) of the Social Security Act 
     (42 U.S.C. 402(k)) is amended by adding at the end the 
     following:
       ``(5)(A) The amount of a monthly insurance benefit of any 
     individual for each month under subsection (b), (c), (e), 
     (f), or (g) (as determined after application of the 
     provisions of subsection (q) and the preceding provisions of 
     this subsection) shall be reduced (but not below zero) by an 
     amount equal to two-thirds of the amount of any monthly 
     periodic benefit payable to such individual for such month 
     which is based upon such individual's earnings while in the 
     service of the Federal Government or any State (or political 
     subdivision thereof, as defined in section 218(b)(2)) if, 
     during any portion of the last 60 months of such service 
     ending with the last day such individual was employed by such 
     entity--
       ``(i) such service did not constitute `employment' as 
     defined in section 210, or
       ``(ii) such service was being performed while in the 
     service of the Federal Government, and constituted 
     `employment' as so defined solely by reason of--
       ``(I) clause (ii) or (iii) of subparagraph (G) of section 
     210(a)(5), where the lump-sum payment described in such 
     clause (ii) or the cessation of coverage described in such 
     clause (iii) (whichever is applicable) was received or 
     occurred on or after January 1, 1988, or
       ``(II) an election to become subject to the Federal 
     Employees' Retirement System provided in chapter 84 of title 
     5, United States Code, or the Foreign Service Pension System 
     provided in subchapter II of chapter 8 of title I of the 
     Foreign Service Act of 1980 made pursuant to law after 
     December 31, 1987,

     unless subparagraph (B) applies.

     The amount of the reduction in any benefit under this 
     subparagraph, if not a multiple of $0.10, shall be rounded to 
     the next higher multiple of $0.10.
       ``(B)(i) Subparagraph (A)(i) shall not apply with respect 
     to monthly periodic benefits based wholly on service as a 
     member of a uniformed service (as defined in section 210(m)).
       ``(ii) Subparagraph (A)(ii) shall not apply with respect to 
     monthly periodic benefits based in whole or in part on 
     service which constituted `employment' as defined in section 
     210 if such service was performed for at least 60 months in 
     the aggregate during the period beginning January 1, 1988, 
     and ending with the close of the first calendar month as of 
     the end of which such individual is eligible for benefits 
     under this subsection and has made a valid application for 
     such benefits.
       ``(C) For purposes of this paragraph, any periodic benefit 
     which otherwise meets the requirements of subparagraph (A), 
     but which is paid on other than a monthly basis, shall be 
     allocated on a basis equivalent to a monthly benefit (as 
     determined by the Commissioner of Social Security) and such 
     equivalent monthly benefit shall constitute a monthly 
     periodic benefit for purposes of subparagraph (A). For 
     purposes of this subparagraph, the term `periodic benefit' 
     includes a benefit payable in a lump sum if it is a 
     commutation of, or a substitute for, periodic payments.''.
       (b) Conforming Amendments.--
       (1) Wife's insurance benefits.--Section 202(b) of the 
     Social Security Act (42 U.S.C. 402(b)) is amended--
       (A) in paragraph (2), by striking ``subsection (q) and 
     paragraph (4) of this subsection'' and inserting 
     ``subsections (k)(5) and (q)''; and
       (B) by striking paragraph (4) and redesignating paragraph 
     (5) as paragraph (4).
       (2) Husband's insurance benefits.--Section 202(c) of the 
     Social Security Act (42 U.S.C. 402(c)) is amended--
       (A) by striking paragraph (2) and redesignating paragraphs 
     (3) through (5) as paragraphs (2) through (4), respectively; 
     and
       (B) in paragraph (2) as so redesignated, by striking 
     ``subsection (q) and paragraph (2) of this subsection'' and 
     inserting ``subsections (k)(5) and (q)''.
       (3) Widow's insurance benefits.--Section 202(e) of the 
     Social Security Act (42 U.S.C. 402(e)) is amended--
       (A) in paragraph (2)(A), by striking ``subsection (q), 
     paragraph (7) of this subsection,'' and inserting 
     ``subsection (k)(5), subsection (q),''; and
       (B) by striking paragraph (7) and redesignating paragraphs 
     (8) and (9) as paragraphs (7) and (8), respectively.
       (4) Widower's insurance benefits.--
       (A) In general.--Section 202(f) of the Social Security Act 
     (42 U.S.C. 402(f)) is amended--
       (i) by striking paragraph (2) and redesignating paragraphs 
     (3) through (9) as paragraphs (2) through (8), respectively; 
     and
       (ii) in paragraph (2) as so redesignated, by striking 
     ``subsection (q), paragraph (2) of this subsection,'' and 
     inserting ``subsection (k)(5), subsection (q),''.
       (B) Conforming amendments.--
       (i) Section 202(f)(1)(B) of the Social Security Act (42 
     U.S.C. 402(f)(1)(B)) is amended by striking ``paragraph (5)'' 
     and inserting ``paragraph (4)''.
       (ii) Section 202(f)(1)(F) of the Social Security Act (42 
     U.S.C. 402(f)(1)(F)) is amended by striking ``paragraph (6)'' 
     and ``paragraph (5)'' (in clauses (i) and (ii)) and inserting 
     ``paragraph (5)'' and ``paragraph (4)'', respectively.
       (iii) Section 202(f)(5)(A)(ii) of the Social Security Act 
     (as redesignated by subparagraph (A)(i)) is amended by 
     striking ``paragraph (5)'' and inserting ``paragraph (4)''.
       (iv) Section 202(k)(2)(B) of the Social Security Act (42 
     U.S.C. 402(k)(2)(B)) is amended by striking ``or (f)(4)'' 
     each place it appears and inserting ``or (f)(3)''.
       (v) Section 202(k)(3)(A) of the Social Security Act (42 
     U.S.C. 402(k)(3)(A)) is amended by striking ``or (f)(3)'' and 
     inserting ``or (f)(2)''.
       (vi) Section 202(k)(3)(B) of the Social Security Act (42 
     U.S.C. 402(k)(3)(B)) is amended by striking ``or (f)(4)'' and 
     inserting ``or (f)(3)''.
       (vii) Section 226(e)(1)(A)(i) of the Social Security Act 
     (42 U.S.C. 426(e)(1)(A)(i)) is amended by striking ``and 
     202(f)(5)'' and inserting ``and 202(f)(4)''.
       (5) Mother's and father's insurance benefits.--Section 
     202(g) of the Social Security Act (42 U.S.C. 402(g)) is 
     amended--
       (A) in paragraph (2), by striking ``Except as provided in 
     paragraph (4) of this subsection, such'' and inserting 
     ``Such''; and
       (B) by striking paragraph (4).
       (c) Effective Date and Transitional Rule.--
       (1) In general.--The amendments made by this section shall 
     apply with respect to applications for benefits under title 
     II of the Social Security Act filed on or after the first day 
     of the first month that begins after the date of enactment of 
     this Act, except that such amendments shall not apply in 
     connection with monthly periodic benefits of any individual 
     based on earnings while in service described in section 
     202(k)(5)(A) of the Social Security Act (in the matter 
     preceding clause (i) thereof) if the last day of such service 
     occurs before July 1, 2004.
       (2) Transitional rule.--In the case of any individual whose 
     last day of service described in subparagraph (A) of section 
     202(k)(5) of the Social Security Act (as added by subsection 
     (a) of this section) occurs within 5 years after the date of 
     enactment of this Act--
       (A) the 60-month period described in such subparagraph (A) 
     shall be reduced (but not to less than 1 month) by the number 
     of months of such service (in the aggregate and without 
     regard to whether such months of service were continuous) 
     which--
       (i) were performed by the individual under the same 
     retirement system on or before the date of enactment of this 
     Act, and
       (ii) constituted ``employment'' as defined in section 210 
     of the Social Security Act; and
       (B) months of service necessary to fulfill the 60-month 
     period as reduced by subparagraph (A) of this paragraph must 
     be performed after the date of enactment of this Act.

[[Page 1603]]



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

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

    ``Disclosure to Governmental Employees of Effect of Noncovered 
                               Employment

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

     SEC. 420. POST-1956 MILITARY WAGE CREDITS.

       (a) Payment to the Social Security Trust Funds in 
     Satisfaction of Outstanding Obligations.--Section 201 of the 
     Social Security Act (42 U.S.C. 401) is amended by adding at 
     the end the following:
       ``(n) Not later than July 1, 2004, the Secretary of the 
     Treasury shall transfer, from amounts in the general fund of 
     the Treasury that are not otherwise appropriated--
       ``(1) $624,971,854 to the Federal Old-Age and Survivors 
     Insurance Trust Fund;
       ``(2) $105,379,671 to the Federal Disability Insurance 
     Trust Fund; and
       ``(3) $173,306,134 to the Federal Hospital Insurance Trust 
     Fund.

     Amounts transferred in accordance with this subsection shall 
     be in satisfaction of certain outstanding obligations for 
     deemed wage credits for 2000 and 2001.''.
       (b) Conforming Amendments.--
       (1) Repeal of authority for annual appropriations and 
     related adjustments to compensate the social security trust 
     fund for military wage credits.--Section 229 of the Social 
     Security Act (42 U.S.C. 429) is amended--
       (A) by striking ``(a)''; and
       (B) by striking subsection (b).
       (2) Amendment to reflect the termination of wage credits 
     effective after calendar year 2001 by section 8134 of public 
     law 107-117.--Section 229(a)(2) of the Social Security Act 
     (42 U.S.C. 429(a)(2)), as amended by paragraph (1), is 
     amended by inserting ``and before 2002'' after ``1977''.

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

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

                    Subtitle C--Technical Amendments

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

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

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

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

     SEC. 423. TECHNICAL CORRECTIONS RELATING TO DOMESTIC 
                   EMPLOYMENT.

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

     SEC. 424. TECHNICAL CORRECTIONS OF OUTDATED REFERENCES.

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

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

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

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

       (a) Quorum Rules.--Section 15(j)(7) of the Railroad 
     Retirement Act of 1974 (45 U.S.C. 231n(j)(7)) is amended by 
     striking ``entire Board of Trustees'' and inserting 
     ``Trustees then holding office''.
       (b) Powers of the Board of Trustees.--Section 15(j)(4) of 
     the Railroad Retirement Act of 1974 (45 U.S.C. 231n(j)(4)) is 
     amended to read as follows:
       ``(4) Powers of the board of trustees.--The Board of 
     Trustees shall--
       ``(A) retain independent advisers to assist it in the 
     formulation and adoption of its investment guidelines;
       ``(B) invest assets of the Trust in a manner consistent 
     with such investment guidelines, either directly or through 
     the retention of independent investment managers;
       ``(C) adopt bylaws and other rules to govern its 
     operations;

[[Page 1604]]

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

              Subtitle D--Amendments Related to Title XVI

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

       (a) Infrequent or Irregular Income.--Section 1612(b)(3) of 
     the Social Security Act (42 U.S.C. 1382a(b)(3)) is amended to 
     read as follows--
       ``(3) in any calendar quarter, the first--
       ``(A) $60 of unearned income, and
       ``(B) $30 of earned income,

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

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

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

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

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

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

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

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

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

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

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

     SEC. 436. MONTHLY TREATMENT OF UNIFORMED SERVICE 
                   COMPENSATION.

       (a) Treatment of Pay as Received When Earned.--Section 
     1611(c) of the Social Security Act (42 U.S.C. 1382(c)), as 
     amended by section 435(a), is amended by adding at the end 
     the following:
       ``(10) For purposes of this subsection, remuneration for 
     service performed as a member of a

[[Page 1605]]

     uniformed service may be treated as received in the month in 
     which it was earned, if the Commissioner of Social Security 
     determines that such treatment would promote the economical 
     and efficient administration of the program authorized by 
     this title.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to benefits payable for months that begin more 
     than 90 days after the date of enactment of this Act.


                       Motion Offered by Mr. Shaw

  Mr. SHAW. Mr. Speaker, I offer a motion.
  The SPEAKER pro tempore. The Clerk will designate the motion.
  The text of the motion is as follows:

       Mr. Shaw moves that the House concur in the Senate 
     amendment to H.R. 743.

  The SPEAKER pro tempore. Pursuant to House Resolution 520, the 
gentleman from Florida (Mr. Shaw) and the gentleman from California 
(Mr. Matsui) each will control 30 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, I am pleased to present to the House the Social Security 
Protection Act of 2003, bipartisan legislation that fights fraud and 
abuse in the Social Security programs.
  In April, the House overwhelmingly passed this bipartisan bill by a 
vote of 396 to 28. In December, the Senate passed an amended version of 
the Protection Act unanimously. They did this by unanimous consent. 
Today, we have an opportunity to pass this essential legislation so 
that it be sent to the President and made law.
  Workers, retirees, individuals with disabilities, survivors and their 
families have paid for and deserve better protection under Social 
Security and the enhanced vigilance against waste, fraud and abuse this 
bill provides.
  First, this bill protects nearly 7 million beneficiaries who cannot 
manage their own affairs and rely on representative payees appointed by 
the Social Security Administration. It does this by raising payee 
standards, increasing oversight, and imposing stricter penalties on 
those who would mismanage the benefits entrusted to their care.
  Second, this bill denies Social Security benefits to fugitive felons 
and probation/parole violators.
  Third, it provides tools to further safeguard Social Security 
programs, including new civil monetary penalties for those who withhold 
information to get benefits and improving collection of overpaid 
benefits.
  Fourth, this legislation closes a loophole in the law that has 
allowed an isolated group of public employees to receive full Social 
Security spouse and widow benefits that no other identical working 
spouse in America receives even when both pay into the Social Security 
program.
  Finally, the bill helps people with disabilities by giving greater 
access to qualified representatives when applying for benefits, by 
improving work incentive programs, and by expanding eligibility for the 
Work Opportunity Tax Credit to encourage more employers to hire 
individuals with disabilities.
  And, accompanying all of this, the taxpayers will save $800 million 
over the next 10 years.
  I thank Senators Grassley and Baucus of the Senate Finance Committee 
who offered to work with the Committee on Ways and Means and, of 
course, the gentleman from California (Mr. Matsui) as we have done this 
on a bipartisan basis as they developed their amendments to the House-
passed bill.
  This amendment made a number of enhancements to the bill.
  First, it increased overpayment collection by authorized recovery 
across Social Security and Supplemental Social Security Income program 
lines.
  It provides for a 5-year nationwide demonstration project providing 
direct fee withholding for qualified nonattorneys who help individuals 
through the complex disability application process.
  It provides additional time for the Social Security Administration to 
test initiatives to help individuals with disabilities return to work 
as well as extended funding for services that help individuals with 
disabilities return to work and keep working.
  It provides for the ability to restart disability benefits based on 
their parent's work if an individual disabled in childhood tries to 
work but must later stop.
  Lastly, enhancement and simplification of the Supplemental Security 
Income program, especially for members of the military and their 
families.
  This bipartisan legislation has support of many organizations because 
it does what is right for the Social Security program, the people who 
pay into it and the people who benefit. It was developed in cooperation 
with the Social Security Administration and the Social Security 
Inspector General. It is also supported by AARP, Citizens Against 
Government Waste, the National Conference of State Social Security 
Administrators, the Consortium for Citizens with Disabilities, the 
National Alliance for the Mentally Ill, the Association of 
Administrative Law Judges, and the National Organization of Social 
Security Claimants' Representatives.

                              {time}  1415

  This bill probably will not make the front page of your newspaper on 
kitchen tables tomorrow morning. That is unfortunate, as Social 
Security is one of our Nation's most important programs and constitutes 
our government's largest expense, consuming approximately one-quarter 
of our Federal budget and growing. It deserves our Nation's attention.
  Protecting the most vulnerable beneficiaries and stopping Social 
Security from hemorrhaging precious dollars through fraud and benefit 
misuse is important and serves as a shining example of what Members of 
Congress can achieve for the American people when we work together.
  I strongly urge my colleagues to vote ``yes'' and give workers and 
beneficiaries the protections that they deserve.
  Mr. Speaker, I reserve the balance of my time.
  Mr. MATSUI. Mr. Speaker, I yield myself such time as I may consume.
  Today, we have before us the Social Security Protection Act. This 
legislation was developed over several years in conjunction with the 
Social Security Administration, its Inspector General, beneficiary 
representatives and others. The bill reflects a preconference agreement 
negotiated with the other body on a bipartisan basis and is supported 
by the Consortium for Seniors With Disabilities, the National Alliance 
for the Mentally Ill, the Association of Administrative Law Judges, the 
National Organization of Social Security Claimants' Representatives and 
others.
  I would like to take a few moments to highlight several items in this 
bill. The first deals with representative payees. Nearly 8 million 
Social Security and SSI beneficiaries who are unable to manage their 
own benefits have representative payees, including children, the 
mentally impaired and the very frail elderly. Most payees work hard to 
ensure that the benefits are spent to meet the beneficiary's needs. 
However, in some instances SSA's screening process for determining who 
should serve as a payee has failed to prevent the misuse of these 
benefits. This legislation gives SSA the tools it needs to reissue 
benefits that are misused. It provides for penalties for those who 
would take advantage of some of our most vulnerable citizens. It also 
strengthens Social Security's oversight of these payees.
  Second, the bill helps individuals with disabilities gain greater 
access to legal representation when filing for benefits. Social 
Security disability insurance beneficiaries already have this access, 
and the bill extends it to SSI claimants, as well, so they can get the 
needed help and ensure that their applications are fully considered.
  Finally, and very importantly, the bill prohibits paying Social 
Security benefits to fugitive felons and to those who have violated 
probation or parole. It is my strong belief that we should not be 
supporting fugitives who are fleeing the law, and this bill will help 
bring them to justice.
  Now, I would like to mention one provision in the bill that has 
generated some controversy. This is the provision that would modify an 
exemption to the government pension offset, or known as GPO, that is 
being used by some

[[Page 1606]]

workers but is not available to all. My colleagues from Texas have 
discussed this specific provision in more detail during the debate on 
the rule and will discuss it further on this bill, but the larger issue 
here itself is the GPO. Across the country, people who have worked hard 
all their lives are unexpectedly faced with the loss of Social Security 
benefits that they had been counting on because of the GPO. The GPO, 
which was created in the 1970s and phased in during the 1980s, was 
designed to provide roughly equal treatment between people who work 
under Social Security and pay into the system and those who do not. It 
was designed to end a disparity between couples where in one couple, 
both members paid into the Social Security system and in another when 
one spouse paid into the system and the other spouse paid into a State 
retirement system. Unfortunately, we now know that the GPO often 
produces unfair results. It is a rough tool that clearly needs 
adjustments.
  Let me illustrate my point. Research shows that a widow needs 80 
percent of the income needed to support a couple. Because of the GPO, 
the couple's income from Social Security can drop to zero when the 
husband dies. On average, the reduction caused by the GPO is $421 per 
month, which cuts the average widow's benefit in half, jeopardizing her 
ability to keep up with fixed costs of housing, health care and others 
that still exist after the death of her spouse.
  We tried to address some of these problems with the GPO during the 
committee markup last year, but we were rejected on party-line votes. 
We were also denied the opportunity to address the larger GPO problem 
in the Rules Committee when the bill came before the House last April. 
Finally today, my good friend from Texas (Mr. Frost) attempted to bring 
forward for debate a bill that would fully repeal the GPO, and he was 
denied that opportunity.
  The will to solve the problem with the GPO is clearly an issue of 
priorities. My Democratic colleagues and I have been prevented from 
bringing this issue before the Congress over and over again, while my 
friends on the other side of the aisle have continued to push policies 
that benefit the wealthy at the expense of this important issue.
  For example, the GPO affects 400,000 hardworking Americans every year 
and eliminating it would cost $31 billion over 10 years. Not $800 
billion, not $1 trillion, but it would cost $31 billion over 10 years. 
In contrast, the 200,000 households that make more than $1 million each 
year will see $90 billion in tax cuts over that same period. That is 
half as many people being benefited at three times the cost. There are 
other examples of misplaced priorities. Congress could and should close 
corporate tax shelters and prevent companies from incorporating 
offshore. That would save $30 billion over a 10-year period and that 
amount would actually take care of dealing with the 10-year period of 
eliminating the GPO completely.
  This is an issue that should not go unaddressed any longer, and I 
hope that the Congress will make it a priority for consideration this 
year. While I am disappointed that we are not addressing this important 
issue today, there are many other provisions in this bill that I 
mentioned that will strengthen the Social Security system, and I intend 
to support this bill; but it is my hope that we do address the issue of 
the government pension offset because it is creating a great deal of 
consternation and damage to many people who obviously lose their 
spouse. I support the legislation, but I just hope that we can take 
some action on the GPO in the future.
  Mr. Speaker, I reserve the balance of my time.
  Mr. SHAW. Mr. Speaker, I yield 2 minutes to the gentleman from 
California (Mr. Herger), a member of the Committee on Ways and Means.
  Mr. HERGER. Mr. Speaker, I rise in strong support of the Social 
Security Program Protection Act. This bill contains important 
provisions to better protect disabled Americans, prevent fraud and 
abuse in Social Security programs, and help disabled beneficiaries 
return to work.
  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. The bill we are considering today will 
make an important contribution to those continuing efforts.
  I commend the gentleman from Florida (Mr. Shaw) for his leadership 
and persistence on this legislation over the course of several 
Congresses. I particularly want to thank him for including provisions 
that will help bring criminals to justice, rather than subsidizing 
their flight, by preventing convicted fugitive felons and parole or 
probation violators from getting Social Security checks. These 
provisions build on my previous legislation that now has successfully 
blocked prisoners and fugitive felons from getting illegally millions 
of dollars in supplemental security income checks.
  Please join me in supporting this legislation.
  Mr. MATSUI. Mr. Speaker, I yield 3 minutes to the gentleman from 
Texas (Mr. Hinojosa).
  Mr. HINOJOSA. Mr. Speaker, I rise today on behalf of the teachers in 
the State of Texas in strong opposition to this legislation.
  H.R. 743 turns a 1-day loophole, which was a minor inconvenience, 
into a 5-year career deterrent. My office is flooded with letters from 
justifiably concerned teachers that do not want to be forced out of the 
classroom even one day earlier than when they are ready.
  Mr. Speaker, I would like to know if the supporters of this bill are 
aware of the teaching shortage crippling our education system. Clearly 
they are not or they would not support the legislation before us today. 
They would not force teachers in Texas and Georgia to choose between 
retirement benefits and a career educating our children. If my 
colleagues were aware of these critical shortages, they would have 
surely stripped this provision from the legislation when they had an 
opportunity to do so almost a year ago. If they were aware of the 
growing teacher-student ratios in public schools, they would definitely 
honor our teachers with the retirement benefits they deserve by 
repealing the WEP and GPO. It could easily be done by passing H.R. 594. 
This bill, with 285 bipartisan cosponsors, would end this inequity not 
only for Texas teachers but for government employees throughout the 
country.
  In 2002, 376,000 public servants had their Social Security spousal 
benefits affected by the GPO. Forty percent of these were widows and 
widowers, and 73 percent were women. These are hardworking people who 
are relying on full spousal benefits to live comfortably in their 
retirement. Many learn of the GPO when it is too late to change their 
retirement plans.
  Yesterday, my office had the pleasure of speaking with Mrs. Carolyn 
Martin, a school librarian at Gregory-Portland High School in the 
coastal bend of Texas. Mrs. Martin was understandably concerned about 
her own future, but much more focused on the future of a teacher at her 
school who recently lost her husband over the holidays. This teacher 
has two children in college and, if H.R. 743 passes, will not be able 
to collect her widow's benefits under Social Security if she wants to 
stay in the classroom.
  Mrs. Martin characterized the issue best. She said, ``Social Security 
is the difference between a minimal standard of living and a dog-food 
diet in retirement.'' She was outraged, as am I, and again I quote, 
that ``millionaires can collect Social Security in this country but not 
Texas teachers.''
  Mr. Speaker, I implore my colleagues to consider the consequences of 
this vote today. Vote against H.R. 743.
  Mr. SHAW. Mr. Speaker, I yield myself such time as I may consume.
  I would like to point out at this time that even under this bill, the 
offset is only $2 for every $3 of pension received, whereas those of us 
who are going to depend on Social Security, those that depend on Social 
Security, the offset is a dollar for dollar. So the teachers that 
people are talking about and public employees that this might affect, 
they are still getting a much better deal

[[Page 1607]]

than people who have paid into Social Security.
  Mr. Speaker, I yield 1 minute to the gentleman from Texas (Mr. 
DeLay), the majority leader.
  Mr. DeLAY. Mr. Speaker, this is a very important bill, and I rise in 
strong support of its passage; but I want to take just a few minutes to 
speak to a particular provision in this bill and the unfortunately 
contentious debate that surrounds it.
  There is a lot of misinformation out there about the government 
pension offset provision, and I want to make sure everyone understands 
what we are talking about today. Under Social Security, spouses of 
covered workers who do not work outside the home themselves are 
entitled to spousal benefits. But if both spouses work, their spousal 
benefits are reduced, or offset, one dollar for every dollar of Social 
Security benefits that they themselves earn. This is true for every 
single couple in America that is covered by Social Security.
  In Texas, many of our school districts have opted out of the Social 
Security system, instead using the Texas teachers retirement system, so 
that those district teachers and staff pay into the TRS, not Social 
Security. As a matter of fairness, the law says that if you pay into a 
different retirement system, like TRS, then your Social Security 
spousal benefits are offset by the benefits that you accrue in the 
other system. This is only fair, and it has been the law for a 
generation.
  Unfortunately, a loophole exists in that law that says even if you 
work your entire career in the teacher retirement system and then work 
for just one day in another school district that uses Social Security, 
you are suddenly entitled to full spousal benefits under Social 
Security, as if you only worked one day in your entire life.
  That is simply unfair, Mr. Speaker.
  The offset law is in place to protect the spirit of Social Security, 
and the loophole violates that spirit.

                              {time}  1430

  Opponents of this provision are correct, though, when they say Texas 
teachers have been targeted for unfair treatment. They have been 
targeted by their unions, Mr. Speaker, who have spread misinformation 
about the spousal benefit loophole. Not only has that misinformation 
been spread about this debate, but it is poisoning the retirement 
planning of deliberately misinformed Texas teachers.
  In recent months some of our offices have gotten calls from single 
teachers who have been led to believe by their unions that they could 
qualify for the spousal benefit loophole when they have never even been 
married. That is the outrage, Mr. Speaker. Not this bipartisan effort 
to protect the Social Security system from waste, fraud, and abuse. 
Teachers in Texas and around the country will be just as protected by 
this bill as everyone else, which is the whole point of the Social 
Security system in the first place.
  We are doing the right thing, and I urge my colleagues to vote yes.
  Mr. MATSUI. Mr. Speaker, I yield 2 minutes to the distinguished 
gentleman from the State of Texas (Mr. Green).
  Mr. GREEN of Texas. Mr. Speaker, even though I hate to disagree with 
another Texan, particularly the majority leader, but let me tell the 
Members the real story. It is not the unions that are the problem. 
Congress made in 1983 Social Security participation by some local 
governments voluntary, school districts. In Texas, very few school 
districts participate in Social Security because they have a teacher 
retirement system. Some do. But the problem we need to address in this 
legislation that we are not and it makes it worse is that we have a 
widow's benefit under Social Security.
  I do not care if they have never paid into Social Security at all. 
They receive a widow's benefit if they were married to someone for more 
than 10 years. And we have cases in Texas that educators, not just 
teachers, custodial staff, lunchroom staff, administrators, maybe even 
superintendents, the highest paid, but it covers so many people that 
they may work under that system their whole life. They are career 
educators, and yet they are married to someone who pays into Social 
Security for over 10 years, maybe 30 or 40 years, and when their spouse 
passes away, that person may be receiving teacher retirement then.
  All of a sudden, they say, I should get my spousal benefit because I 
am a widow. Tough luck. That spouse they may have been married with for 
30 years, they receive very little, in fact, almost nothing under their 
Social Security benefits.
  That is what is wrong with the current law. That is why Texans 
innovatively have found a way, okay, we will go work a day. That is a 
loophole. Let me tell my colleagues I have watched lots of loopholes 
pass through this House in my six terms, but I am glad for one time 
maybe teachers are benefiting from it.
  But that is why we need to reform the Government Pension Offset, and 
that is why I wish the committee would deal with it. But, in all 
honesty, this is making a bad situation worse, because we will have 
Texan teachers who have committed their lives to our public 
schoolchildren and they will be retiring before this bill is effective 
if they have their magic number of years plus age, and they will retire 
because they will not want to lose their spousal benefits.
  Mr. SHAW. Mr. Speaker, I yield myself such time as I may consume.
  I tell the gentleman from Texas that I know he feels passionate about 
this and I can agree with his motivation with regard to this, but the 
simple fact arises that there is an offset for those where we have a 
spouse and a worker both paying into Social Security. We simply bring 
them pretty close down to where some people who are paying into Social 
Security and work every single day and pay under the Social Security 
program, and still we give the people he is talking about a better deal 
than the people who have really labored under Social Security only.
  Mr. Speaker, I yield 10 minutes to the gentleman from Texas (Mr. 
Brady).
  Mr. BRADY of Texas. Mr. Speaker, I rise on behalf of the 99 percent 
of the seniors in America who do not have a special loophole. I rise on 
behalf of the 99 percent of the widows in America who do not have a 
special loophole.
  What we are discussing today is a situation where a very select few 
in America, sort of a second class, a higher class of citizens in 
America, get to keep a lot of Social Security, where their next-door 
neighbor who has paid into Social Security all their life get to keep 
much less.
  What we are talking about here is a special loophole. The way it 
works today is that most of us pay into Social Security. My wife pays 
into Social Security. The husband pays into Social Security. But there 
are some who work for local governments or who are teachers like in 
Texas where they do not contribute to Social Security at work. They 
have a substitute, in this case a teacher retirement system. That is 
where their payroll taxes go. And very few of them have found a 
loophole in the law from 25 years ago that allows them to escape the 
formula that everyone else in America is applied to and receive much 
more in benefits than we will ever dream of receiving.
  Here is the way the loophole works. In Texas, a teacher works their 
whole life, but they do not contribute to Social Security. Under this 
loophole, if they will take their last day and go to another school 
district and pay that school district to work for them, think about it, 
they pay $500 so they can work one day at minimum wage for a school 
district. And, in return for working that one day at minimum wage, 
contributing about $3 into Social Security, they receive on average 
$93,000 of Social Security retirement that no one else in America gets, 
literally no one else in America gets, the teacher in New York does not 
get, the nurse in Iowa does not get. The cleaning lady in our offices 
up here does not get this.
  Let us compare how it works in real life so we can all see how it 
affects us and just what this loophole means. Take a look at the 
average Social Security recipient in America. The husband is getting 
about $1,000 a month for

[[Page 1608]]

Social Security; the wife's monthly retirement is $700. For most of us, 
almost everyone who pays into Social Security, when that husband dies 
and the widow has her benefits, for 99 percent of America her benefits 
are going to be $1,000 a month, using this example, which, by the way, 
is exactly the average for Americans. For those who are in government 
pensions, the ones who do not pay into Social Security, they receive 
more. Those widows receive $1,233 more. They keep more of Social 
Security, having not paid into it, than those who have paid their whole 
life into it. That is the way the formula works.
  But under the loophole we are closing today, it is even more 
outrageous. If we leave this loophole open, the teacher who only worked 
one day in Social Security will receive $1,700 in monthly benefits, far 
greater than the widow who worked her whole life in Social Security. 
Amazingly, the loophole permits a spouse who only contributed to Social 
Security for one day to receive so much more than the widow who worked 
her whole life in Social Security, her whole life, and who receives a 
pittance of what this loophole provides for \1/100\ of 1 percent of all 
Americans.
  We cannot have two classes of families in America, those who have 
loopholes for Social Security and those who do not. This loophole is 
unfair to working families. It drains hundreds of millions of dollars 
from the Social Security Trust Fund, which is why senior groups say 
close this loophole now. And it deserves to be closed.
  Let me make a final point here. Under this loophole in Texas today, 
we have great teachers. We have wonderful teachers. My sister-in-law is 
one. We are here because of our teachers. But teachers are inherently 
fair, I think, like the rest of Americans; and if we look at loophole 
today, this college professor who worked one day in Social Security 
receives a ton of the money, but the cleaning lady in our offices 
receives a small fraction of it. If we leave the loophole open, the 
school superintendent who makes $200,000 a year keeps a ton of Social 
Security. The checkout lady at the grocery store who has worked her 
whole life and still working now, she gets a pittance of it. The 
teacher in Texas gets a ton of money. The teacher in Iowa and Ohio and 
New York and California gets a pittance.
  Those who want to keep this loophole open want to create two classes 
in America. It is inherently unfair to do that. It is right to close 
this loophole. It is wrong to have two classes of families in America. 
It is time to make Social Security fair.
  Mr. LAMPSON. Mr. Speaker, will the gentleman yield?
  Mr. BRADY of Texas. I yield to the gentleman from Texas.
  Mr. LAMPSON. Mr. Speaker, one quick, simple question. Who earns the 
benefits that the teacher's spouse, who ultimately goes off and takes 
advantage of that loophole, who earns the benefits he or she is trying 
to get?
  Mr. BRADY of Texas. The husband.
  Mr. LAMPSON. The spouse earns them. Those are earned dollars; right 
or not?
  Mr. BRADY of Texas. Yes.
  Mr. LAMPSON. They are earned dollars?
  Mr. BRADY of Texas. Yes.
  Mr. LAMPSON. Mr. Speaker, so what we are going to say is we will 
dilute what was earned by that family. Yes or no?
  Mr. BRADY of Texas. No.
  Mr. LAMPSON. Explain.
  Mr. BRADY of Texas. Mr. Speaker, because in America when both spouses 
pay into Social Security, the formula, the way it works, is that if 
their husband passes away, which normally happens first, she keeps all 
of her Social Security. Then she keeps all of his minus hers. That is 
the formula. For those in government pensions, like teachers, it is 
almost the exact same formula. They keep their retirement plus their 
husband's minus only \2/3\.
  So I appreciate this is an issue dear to the gentleman from Texas's 
(Mr. Lampson) heart, but under the formula today, that teacher, that 
government worker already keeps more of their spouse's Social Security 
than the rest of America. And if we keep the loophole open, they gain 
nearly twice as much as the family that worked exactly the same hours, 
paid exactly the same money in, and whose husband died exactly at the 
same time. We are creating those two classes of families in America, 
and that is what we are trying to stop.
  Mr. LAMPSON. But all paid in by the husband and spouse?
  Mr. BRADY of Texas. Mr. Speaker, the husband paid in in one; the 
husband and wife paid in in both; and the husband and wife, the widow 
who paid her whole life, she gets less. Two classes of citizens in 
America. And nowhere do I know in America can one work one day, 
contribute $3, and take home $93,000 in their pocketbook that the widow 
next door who worked her whole life will never, ever see. It is time to 
close this loophole.
  Mr. MATSUI. Mr. Speaker, I yield 1\1/2\ minutes to the distinguished 
gentleman from the State of Maryland (Mr. Cardin), member of the 
Committee on Ways and Means.
  Mr. CARDIN. Mr. Speaker, I thank the gentleman from California (Mr. 
Matsui) for yielding me this time.
  Let me concur in the comments that the gentleman from California (Mr. 
Matsui) made earlier where I think he gave a very good explanation, the 
Government Pension Offset and the issues concerning it and then what is 
in this bill generally, which have very good things to help shore up a 
system that is very important to millions of Americans, our Social 
Security system.
  I listened to debate about the Government Pension Offset and the 
problems in Texas, and I think the point that many of us are trying to 
raise is that there may be a problem in what is happening in Texas, but 
why are we not reforming the Government Pension Offset? The 
distinguished gentleman from Florida (Mr. Shaw) has a bill in to reform 
that. The gentleman from Louisiana (Mr. Jefferson) has a bill in to 
deal with it.
  It is an issue that cries out for reform because we are not treating 
particularly our lower-wage workers appropriately with the Government 
Pension Offset. I think we have all acknowledged that this is an issue 
that we need to take up. This was an excellent opportunity for us to 
correct it, and we will lose that opportunity.
  In regards to the underlying bill itself, I compliment the gentleman 
from Florida (Mr. Shaw) and the gentleman from California (Mr. Matsui) 
and Commissioner Barnhart and our colleagues on the other side of the 
Capitol for working together to develop a bipartisan bill to strengthen 
Social Security, particularly as it relates to individuals who have 
disabilities who are collecting Social Security, ``representative 
payees.''
  We know, we have reports, of people who are not able to manage their 
own money. We know that in 2,400 cases over $12 million dollars has 
been lost, and this bill will help clean that up, and that is important 
for us to deal with that.
  We also know, in regards to the Ticket to Work law and the Work 
Incentives program that helped disabled individuals, that we are 
strengthening those programs. We are helping claimants who are applying 
for SSI to get the funds that they need.
  So there are important provisions in this bill that have been worked 
out by Democrats and Republicans working together. That is the way we 
should work. It is a good bill. But we should have taken care of the 
Government Pension Offset, and we have not done that in this bill.
  Mr. SHAW. Mr. Speaker, I yield myself such time as I may consume.
  In just a brief response to the gentleman from Maryland, he correctly 
described my intentions, but the bill has not yet been prepared. As 
soon as we get some figures back, I intend to work closely with the 
gentleman from California (Mr. Matsui) and other members on our 
Committee on Ways and Means to make this a bipartisan effort on the 
Government Pension Offset, where it is still very much a work in 
progress, and we want to be sure that we can get it right. If it can be 
bipartisan, I think the gentleman from California (Mr. Matsui) and I 
have both learned that we can accomplish a

[[Page 1609]]

lot more by working together than working separately.
  Mr. Speaker, I reserve the balance of my time.

                              {time}  1445

  Mr. MATSUI. Mr. Speaker, I yield 2 minutes to the distinguished 
gentlewoman from Texas (Ms. Jackson-Lee).
  Ms. JACKSON-LEE of Texas. Mr. Speaker, I thank the distinguished 
ranking member and the chairman, and I thank my good friend from Texas 
as well. I will try to speak quickly. Many of us are managing a number 
of activities, and committees are going on as we speak.
  I just quickly want to say that although we appreciate the work of 
this bill, we have to rename it. It is called the ``Forced Work Bill.''
  I think what is going on on this floor is a lot of smoke and mirrors. 
There are good points to this bill. Someone got up on the floor and 
said you are asking the widows and others to do things and to get 
benefits that others are not. That is absolutely incorrect. If we had 
supported the Frost motion to fix this problem by stripping section 
418, which would penalize firefighters, police officers and teachers, 
we would not be standing here saying vote ``no'' on this bill.
  What this bill is doing is those who are in an independent pension 
system are now forbidden from getting their spousal benefit. It is the 
benefit that their spouse is owed. It is not that they are getting any 
monies that are not owed them; it is that they are prohibited from 
getting those monies because they are not in the Social Security 
system. If they are not in the Social Security system, they are 
forbidden from getting the money.
  All we are asking to do is support teachers, police officers, 
firefighters and other public servants. The GPO affects many 
individuals, but it especially is harmful to these public servants. And 
we are not snatching anything from someone who has gotten this benefit. 
We are trying to get what is ours. The only reason we cannot get it if 
we happen to be a teacher, policeman or firefighter is because we are 
not in the Social Security system.
  So this is a lot of smoke and mirrors; and if I have to stand with 
anyone, I am going to stand with the hardworking teachers, firefighters 
and police officers, who are merely trying to get what is theirs. If we 
do not remedy this problem, then you force those who have worked all of 
their lives and are due for retirement to work another 5 years in order 
to get equity for something that is owed to them.
  I wish our colleagues would tell the truth and stand for teachers, 
firefighters and police officers, like the rest of us.
  Mr. Speaker, I am saddened to have to come to the floor today to 
speak out yet again against H.R. 743, The Social Security Protection 
Act of 2003. There is much good in this bill. If the Majority 
Leadership would take out the small error that will hurt our teachers 
and firefighters and police, this bill could be in front of the 
President soon. That would be a great service.
  Social Security represents a covenant between the U.S. Federal 
Government and the American people. It is a promise that if a person 
works hard, and contributes into this investment program, that when it 
comes time for them to retire--their government will ensure that a fair 
benefit is there for them. It seems that too often, criminals take 
advantage of the trust between the Social Security Administration and 
the seniors and disabled Americans it serves. They misuse Social 
Security benefits. Such activity is worse than just stealing, because 
it threatens the confidence that the American people have in their 
government. That confidence is the foundation of our democracy.
  So last Congress, I joined with every voting Member of this House in 
support of the The Social Security Act of 2002. It was an excellent 
piece of bipartisan legislation, which would have made great strides 
towards cutting down on the abuse of the Social Security system. Most 
of the major provisions of the that bill are reflected in the bill 
before us today, and I still support them. The bills would both protect 
Social Security recipients by mandating reissue of funds when their 
payments are misused. Representative payees who misuse a person's 
benefits would be forced to reimburse those funds, plus would be 
subject to fines of up to $5,000 if they knowingly provided false or 
misleading information.
  The bills would allow the Commissioner to withhold benefits from 
fugitive felons, and persons fleeing prosecution. The bills also 
provide for numerous improvements to the present system, which would 
reduce fraud and abuse of the program. Obviously there is a lot of good 
in the last bill and in this bill as well.
  The last bill passed unanimously in the House in the 107th Congress, 
and similar legislation cleared the Senate. But unfortunately this 
important legislation got hung up at the end of 2002. With such support 
and progress, this should have been an easy piece of work to get 
through this year, and a score for the American taxpayers. Instead, a 
wrench has been thrown into the works, through the addition of a small 
section that has provoked a deluge of phone calls into my office from, 
it seems like, every schoolteacher in my district.
  The Texas branch of the American Federation of Teachers describes 
Section 418 as ``poison for Texas school employees.'' That section 
relates to the Government Pension Offset. At present, if an individual 
receives a government pension based on work that was not covered by 
Social Security, his or her Social Security spousal or survivor benefit 
is reduced by an amount equal to two-thirds the government pension. 
This provision of current law is called the Government Pension Offset 
(GPO). However, under the ``last day rule,'' an individual is exempt 
from the GPO if he or she works in a job covered by Social Security on 
the last day of employment.
  Many school districts offer teachers non-Social Security government 
pensions, so until now many teachers have been forced to take advantage 
of the ``last day'' loophole. Just before they retire, they get a job 
in a business with a Social Security pension for a day, in order to 
receive their deserved benefits. This is a ridiculous system, and the 
appropriate way to fix it would have been to repeal the GPO. In fact, I 
have co-sponsored H.R. 594 with my colleague from California, Buck 
McKeon, and 285 others to do just that.
  Instead, the bill before us today closes the loophole by forcing 
teachers to work for the last five years of their careers in an 
appropriate job. That may force many teachers to retire early from 
teaching. I am usually all for getting rid of loopholes, but now is no 
time to be ``sticking-it'' to teachers--just as we are trying to leave 
no child behind, just as we have a shortage of qualified teachers in 
many areas. This could drive many people away from careers in teaching.
  For example, I received one call from a woman in my District who was 
a teacher earlier in her life. Her husband recently passed away and she 
has been contemplating going back into teaching. But she has been 
warned that she could actually jeopardize her financial future by going 
to work. As a widow, she will be entitled to her husband's social 
security benefits. However, if she starts to teach in a school district 
with a government non-Social Security pension, she could lose $360 per 
month in retirement benefits--over $4000 per year.
  Why should she risk it? If H.R. 743 passes today, it won't be only 
she that loses. It will be our nation's children who lose--an 
experienced, intelligent teacher.
  The GPO issue needs to be addressed, but not today. Right now, we are 
giving money to criminals who are beating our system and undermining 
confidence in the future of Social Security and the government as a 
whole. We need to protect Social Security, and we need to do it soon. 
But I will wait until we can do it without attacking our teachers, and 
penalizing our children.
  I am proud to stand with my Democratic colleagues from Texas, to 
fight for our teachers. I will vote ``no'' on H.R. 743 unless the 
offending provision is taken out, and urge my colleagues to do the 
same.
  Mr. SHAW. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I would have to correct the previous speaker when she 
says they do not get any of their survivor benefits and advise her 
that, yes, under this bill, the teachers that she is referring to get 
one-third of the survivor benefits, even after the offset, whereas if 
you have a similar situation where a teacher teaching where there is 
not this loophole and pays into the Social Security system, generally 
in that same example they get zero. So I just want to be sure the 
record is correct on that.
  Mr. Speaker, I reserve the balance of my time.
  Mr. MATSUI. Mr. Speaker, I yield 1 minute to the gentlewoman from 
Texas (Ms. Jackson-Lee).
  Ms. JACKSON-LEE of Texas. Mr. Speaker, let me just quickly say I 
appreciate the attempt to correct some

[[Page 1610]]

portions of this bill, but that is not enough.
  Again, let me emphasize the one-third. What I am suggesting is that 
the only reason these individuals are penalized is because they are in 
a parallel system; they are not in the Social Security system, which in 
fact helps to relieve the Social Security system from the burden of 
more people being in it.
  I would only say, do you not think if you worked a full-term and you 
are owed these benefits through your spouse that you deserve the full 
benefits and not one-third? Why penalize firefighters, police officers, 
and teachers? I will support these Texas public servants having full 
benefits.
  Mr. SHAW. Mr. Speaker, I yield 1 minute to the gentleman from Texas 
(Mr. Brady) a member of the Committee on Ways and Means.
  Mr. BRADY of Texas. Mr. Speaker, I would like to make two points. 
This bill does not address firefighters or police officers or teachers, 
and not even all the teachers in Texas. It applies to \1/100\ of 1 
percent of all Americans who have a special loophole.
  The point my good friend from Houston was making is absolutely wrong. 
They do not receive less money because they do not pay into Social 
Security; they actually get more money than the widows and the families 
who have spent their whole life paying into Social Security. They 
already get this. Under this loophole, they would get, for $3 of work, 
1 day, they receive $93,000 on average in retirement; and our widows in 
hospitals and widows that clean our offices and widows, like my mom, 
will never see that money.
  This is about not creating two classes of citizens in America, those 
with a special loophole and those without.
  Mr. MATSUI. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I would just like to make an observation. I would not 
have so many problems with this were it not for the fact that there are 
many other loopholes that have actually been passed through this House 
over the last few years.
  For example, if a corporation in the U.S. goes to Bermuda to avoid 
U.S. taxes, we tried time and time again to close that loophole. But 
the other side of the aisle, in fact the gentleman who just spoke, 
denies the ability for us to even bring such a bill to the floor.
  I guess that is where the frustration lies, is when we close 
loopholes, we pick on the people that are firefighters and teachers; 
but we let large corporations who avoid U.S. taxes go from that.
  Mr. Speaker, I yield 3 minutes to the distinguished gentleman from 
the State of Texas (Mr. Lampson).
  Mr. LAMPSON. Mr. Speaker, I thank the gentleman for yielding me time.
  Mr. Speaker, this is a complex issue and one that touches an awful 
lot of us in different kinds of ways. While I certainly support the 
efforts that this committee has made in developing this bill, and I 
know how important the bill is, I am still going to vote against it and 
will oppose it and ask my colleagues to do so.
  There are some 50,000 teachers across the State of Texas who will 
indeed be adversely affected by this legislation. The bill includes 
provisions which I consider to be catastrophic for Texas teachers. 
Provisions in the legislation would, in effect, reduce the amount of 
combined benefits that Texas teachers could depend upon after 
retirement.
  There are many Texas teachers who have worked and paid into Social 
Security in other jobs. My wife and my daughter are two who have done 
just that. They have moved, and they have paid into the teacher 
retirement system now. Susan has paid into the Social Security system 
for many years in other jobs that she held before she decided to teach. 
Because of her involvement in the teacher retirement system and because 
she has paid into her pension fund, she will be adversely affected by 
the government pension offset. Those are benefits that I earned because 
of my payment into Social Security.
  Teachers do not make a great deal of money in the State of Texas, and 
in most other places as well; and it is hard to entice them to stay in 
the classroom. This legislation is going to have broad implications for 
those teachers and will most likely force many of them to leave this 
profession early, most likely, from our public schools. What impetus 
does an experienced teacher have to stay in the classroom and continue 
teaching, if the government is in effect going to significantly reduce 
his or her retirement payment potential after this year?
  This bill fails to address a larger issue for public servants in this 
country. The government pension offset unfairly penalizes teachers and 
many other government workers, the employees who mostly pay into a 
public pension plan. How can we sit by idly while our public service 
employees are being penalized for serving their communities? Where is 
our loyalty to the first responders that so many of my colleagues have 
praised on this floor? When push comes to shove, are we willing to 
allow the firefighters and police officers in our hometowns to suffer?
  The government pension offset is a deterrent to public service across 
this Nation; and if we are to attract the best and the brightest into 
public service, such as our teachers, such as my wife, Susan, and my 
daughter Stephanie, fire fighters and police officers, we must repeal 
this unfair provision. This is money that hardworking American citizens 
have earned and are indeed entitled to.
  I truly wish, and I intended to make the point the gentleman from 
California (Mr. Matsui) made a minute ago, I wish we would work as hard 
in repealing the loophole that has allowed corporations to avoid the 
payment of $40 billion in taxes each year by moving their corporations 
offshore.
  I urge my colleagues to consider a ``no'' vote on this bill, as I am 
going to vote against H.R. 743. Our public servants deserve our 
support.
  Mr. SHAW. Mr. Speaker, I reserve the balance of my time.
  Mr. MATSUI. Mr. Speaker, I yield such time as he may consume to the 
gentleman from Texas (Mr. Green).
  Mr. GREEN of Texas. Mr. Speaker, again I thank our ranking member on 
our Subcommittee on Social Security and also the chairman of the 
Subcommittee on Social Security. I know we have a difference of opinion 
on this issue; and I guess it is frustrating, because with what is 
happening with our general budget, this year, this Congress and this 
government will take $155 billion and borrow it from the Social 
Security trust fund, and what is it paying for? A lot of folks will say 
it is paying for the war in Iraq. No, it is also paying for tax cuts 
that this House passed on two different occasions. But by this bill 
today, we are going to take away these same Social Security trust funds 
that are for these widows and people who paid into Social Security.
  Again, let me explain to my colleagues, these are people who may 
never have paid into Social Security. If they did, they are subject to 
government pension offset, like everyone. But these people never paid 
in. They were educators or firefighters or police officers in a system 
that was not part of Social Security, but they paid into their own 
pension fund; and if their spouses die and they have been married for 
less than 10 years, we will not pay them their spousal benefit.
  I do not know how much harder this Congress can get. When we talk 
about giving tax cuts to everybody in the world, and we let companies 
move their headquarters overseas as a sham, and yet we are going to 
remove the Social Security benefits from a widowed educator, and 
typically 80 percent of them are women, and her only problem was that 
she taught school or worked in the cafeteria or helped clean up 
schools. Because their husband was a Social Security beneficiary, he 
paid into Social Security, maybe for their whole work life, and so you 
remove it.
  It is just frustrating that this bill is going to make a bad system 
even worse. That is why I rise in opposition to H.R. 743 and urge my 
colleagues to join in voting against it.
  In many ways, 743 is a good bill, and I know there are some good 
parts in it, and I heard my colleagues on both sides. It would help 
stem fraud and abuse in the Social Security system. Well, I support 
that. I agree that fugitive felons should not collect Social

[[Page 1611]]

Security benefits. And I support a number of other provisions. But, in 
all honesty, if we have a fugitive felon getting Social Security 
benefits, why are they still a fugitive?
  Unfortunately, this has been wrapped up in an explosive issue that 
has caused serious harm to educators who are widowed by someone who has 
paid into Social Security.
  We are all familiar with the unfair government pension offset; 285 
Members of this House have cosponsored legislation to reform the GPO. 
This provision of current law keeps public employees from collecting 
full spousal benefits if they receive a pension based on State, local, 
or Federal Government employment not covered by Social Security. This 
provision is unfair and targets government workers at the Federal, 
State, and local levels. Again, 285 of us think it ought to be 
reformed.
  The GPO is a problem for many public servants, but it is especially 
bad for women. Eighty percent of the Texas school teachers and retirees 
are women, sixty percent of that group are married, and almost all of 
them are eligible for Medicare through their husbands; but none of them 
are eligible for their spousal benefit because of the GPO under this 
bill.
  After a lifetime of being underpaid as teachers, they depend on their 
Social Security widow's benefit to make up for their retirement, but 
the GPO takes that benefit away. That is why, again, the repeal of H.R. 
594 is so popular.
  The bill by our colleagues, the gentleman from California (Mr. 
McKeon) and the gentleman from California (Mr. Berman), have, again, 
garnered 285 bipartisan cosponsors. We had an opportunity to address 
this in H.R. 743; but instead of fixing the GPO, this bill makes it 
harder for Texas teachers to collect the full spousal benefit. Again, 
285 members agree the GPO is unfair and should be repealed. We should 
not penalize Texas teachers for figuring out a way to do what this 
Congress will not do.
  I urge my colleagues to stand for public servants everywhere and vote 
against H.R. 743.

                              {time}  1500

  Mr. MATSUI. Mr. Speaker, may I inquire as to how much time I have 
remaining.
  The SPEAKER pro tempore (Mr. Isakson). The gentleman from California 
(Mr. Matsui) has 7\1/2\ minutes remaining; the gentleman from Florida 
(Mr. Shaw) has 12\1/2\ minutes remaining.
  Mr. MATSUI. Mr. Speaker, I yield the balance of my time to the 
gentleman from Texas (Mr. Turner), the ranking member of the Committee 
on Homeland Security.
  Mr. TURNER of Texas. Mr. Speaker, it does not happen very often on 
the floor of this House where a bill comes forward that has many good 
provisions in it, but there is one provision that is so damaging and so 
harmful and so unfair that it causes us to oppose an otherwise good 
bill. But as my colleagues have heard over and over again today in this 
debate, public school teachers in places like my State of Texas and 
other government employees feel very strongly that the government 
pension offset is wrong, that it must be corrected, the law must be 
changed; and this bill provided an opportunity to correct that 
injustice.
  I know from personal experience how deeply this issue is felt by 
public school teachers. It was a couple of years ago in my office that 
I had a lady come to see me, and I really did not know why it was she 
really wanted to come see me, but my staff had said this lady really 
wants to talk to you, she needs to see you. So I said, well, let her 
come on, I would be glad to visit with her. I had no idea what it would 
be about.
  She came and she began to tell me a story that quickly turned to 
tears in her eyes when she told me about how her husband had passed 
away just a few months before. After his death, she learned that she 
would not be able to collect any of the survivor benefits that she 
believed, rightfully, her husband had earned by a lifetime of 
contributions to the Social Security system. She explained to me that 
the law apparently said that because she was a public school teacher, 
an honorable profession, that somehow the law said that she could not 
qualify for survivor benefits that her husband had contributed for 
years to ensure that she would get. She told me, she said, if I had 
done anything else, if I had just worked in a private company, they 
tell me that I could get the survivor benefit; but because I am a 
teacher and receiving a benefit from the teacher retirement system, 
that I am disqualified. Her tears turned to anger as she said to me, 
this is wrong. And as I have learned over the years since, teachers all 
across my State of Texas feel very strongly about the unfairness of 
this provision of the Social Security law.
  So I think with an overwhelming majority of this House having signed 
on to a bill to eliminate this offset, that we should have, in good 
conscience, taken the opportunity in this legislation to have corrected 
that unfair provision of the Social Security law.
  I recognize that there are some who have logical arguments as to why 
this should not be changed, but I will tell my colleagues that after 
listening to this widow with tears in her eyes, I became convinced that 
she had the better side of the argument. Oh, I know it is going to have 
a cost to the Social Security trust fund to provide this benefit to all 
of these public school teachers who have had spouses who have passed 
away before them, but the reality is that getting it fixed is the right 
thing to do.
  I would urge my colleagues today to take what will be perhaps 
somewhat of a difficult step and join with those of us who have stood 
on this floor arguing about this point for this entire hour of debate 
and vote against a bill that is otherwise a good bill, to give us the 
opportunity to correct what we believe, and many, many public employees 
believe, is a very unfair provision of the Social Security law.
  I want to commend the gentleman from Florida for his leadership on 
Social Security. I know that he differs with us on this issue, but I 
hope that the Members who have joined on in supporting the McKeon bill 
to correct this problem will also join with us today to vote against 
this bill so that once and for all we can do what is right for our 
teachers and for our public employees.
  Mr. MATSUI. Mr. Speaker, I yield back the balance of my time.
  Mr. SHAW. Mr. Speaker, I yield myself the balance of my time.
  Mr. Speaker, in looking at what is right, it is right to protect 
beneficiaries from representative payees who would misuse these 
benefits. We all agree on that, whether you are from Texas, Georgia, 
California, or New York. It is right to deny Social Security benefits 
to fugitive felons and probation parole violators. We can all agree on 
that. It is right for this Congress to pass a bill that deters waste, 
fraud, and abuse. That is in this bill, and that is the right thing to 
do. It helps individuals with disabilities gain access to 
representation, and it encourages disabled beneficiaries to return to 
work. That is the right thing to do.
  Now we get to the hard question: Is it right to close a loophole that 
enables some teachers in Georgia and Texas to contribute just a few 
dollars to Social Security to receive nearly $100,000 in additional 
lifetime spousal benefits? I strongly believe this loophole should be 
closed.
  Let me give an example which I think would be very helpful to the 
Members in deciding how they are going to vote on this issue. Any 
worker, corporate, executive, otherwise, or school teacher who pays 
into both Social Security and a retirement plan will receive both 
benefits based upon their work. However, no worker will receive a full 
spouse or widower benefit; those benefits are reduced or eliminated 
dollar for dollar by the earned Social Security benefit. Public 
employees who contribute to a public employee pension plan instead of 
Social Security actually face a lower, a lower offset under this bill 
of their spouse or widow benefits than workers who paid into Social 
Security their whole career. And that is only $2 for every $3. So these 
people who did not pay into Social Security are getting a better

[[Page 1612]]

deal than people who paid into Social Security their whole working 
lives.
  Also, this bill has bipartisan support and the support of key 
stakeholders, and it does save us money. This same identical bill was 
passed, almost identical bill, was passed by the House by a vote of 396 
to 28. It passed. And then it passed by unanimous consent in the Senate 
with some minor changes, which is the reason we are back here today.
  If we were to look at the arguments that have been made today as to 
what is fair and what is not fair and apply those same arguments as to 
spousal benefits, surviving spouse benefits to people who have paid 
into Social Security all their working life, it would cost the Social 
Security Administration $1 trillion and would bankrupt the system. This 
is what we are facing: basic fairness. I say, apply the law as this 
bill outlines it. It is fair. It is the right thing to do. I urge 
passage of the bill.
  Mr. STARK. Mr. Speaker, today I rise in support of the Social 
Security Program Protection Act.
  This legislation makes a strong Social Security program even stronger 
for the millions of Americans who rely on its benefits for stability 
through old age, disability or loss of a loved one. And this bill will 
help to protect the promise of economic security for future 
generations--a promise we must keep.
  I strongly support the protections this legislation provides for some 
of the most vulnerable recipients of Social Security. Today, many 
beneficiaries are unable to manage their own benefits so a 
representative payee is often appointed to do so on their behalf. While 
this is undoubtedly necessary, too many seniors and people with 
disabilities have fallen victim to fraud and abuse.
  This bill makes dramatic improvements to the representative payee 
system to help protect beneficiaries. It does so by initiating strict 
oversight of representative payees and expanding the ability of the 
Social Security Administration to repay benefits that have been misused 
or stolen. For many, this puts real financial security back in Social 
Security.
  Despite the strengths of this bill, I am disappointed, however, that 
Republicans refused to accept an amendment I offered to this bill in 
the Ways and Means Committee to reduce the Government Pension Offset 
penalty. This penalty unfairly reduces or even eliminates Social 
Security benefits for millions of teachers, firefighters, police 
officers and others who serve the public.
  I urge my colleagues to vote for the Social Security Program 
Protection Act to extend the promise of retirement security for every 
American, today and tomorrow.
  Mr. PAUL. Mr. Speaker, I intend to vote for H.R. 743, the Social 
Security Protection Act, because it contains an important provision 
that was not included in previous versions of this bill. This provision 
takes a first step toward ensuring that non-citizens who are 
unauthorized to work in the United States do not receive Social 
Security benefits. Giving Social Security benefits to illegal 
immigrants is a slap in the faces of Americans who pay their entire 
working lives into the Social Security system and now face the 
possibility that there will be nothing left when it is their turn to 
retire. This is why, at the beginning of the 108th Congress, I 
introduced legislation, the Social Security for American Citizens Only 
Act (H.R. 489), which ensures no non-citizen can receive Social 
Security benefits. Therefore, I am pleased to see Congress beginning at 
last to address this issue.
  However, I wish to make clear my continued opposition to a provision 
in the bill that removes the only means by which many widowed Texas 
public school teachers can receive the same personal Social Security 
benefits, as does every other American. As I am sure my colleagues are 
aware, widowed public school employees in Texas, like public employees 
throughout the nation, have their spousal Social Security benefits 
reduced if they receive a government pension. The Government Pension 
Offset even applies if the public employee in question worked all the 
quarters necessary to qualify for full Social Security benefits either 
before or after working in the public school system.
  The Government Pension Offset punishes people for teaching in public 
schools. However, current law provides widowed Texas public school 
teachers a means of collecting a full Social Security spousal benefits. 
Unfortunately, this bill takes that option away from Texas teachers. I 
have twice voted against H.R. 743 because of my strong opposition to 
the provision removing the only way Texas teachers can avoid the 
Government Pension Offset.
  Instead of repealing the only means Texas teachers have of avoiding 
the Government Pension Offset, Congress should pass H.R. 594, the 
Social Security Fairness Act that repeals both the Government Pension 
Offset and the Windfall Elimination Provision, another provision that 
denies public employees full Social Security benefits.
  Congress should also be encouraging good people to enter the 
education profession by passing my Teacher Tax Cut Act (H.R. 613) that 
provides every teacher with a $1,000 tax credit, as well as my 
Professional Educators Tax Credit Act (H.R. 614), which provides a 
$1,000 tax credit to counselors, librarians, and all school personnel.
  In conclusion, Mr. Speaker, I will support H.R. 743 because it 
restricts the ability of illegal immigrants to raid the Social Security 
Trust Fund. However, I remain opposed to the provision that punishes 
teachers by denying them Social Security benefits for which they would 
be eligible if they were not teachers. Instead of punishing teachers, 
Congress should be enacting pro-teacher legislation, such as the Social 
Security Fairness Act and the Teacher Tax Cut Act.
  Mr. HOLT. Mr. Speaker, I rise in support of H.R. 743, the Social 
Security Protection Act. This bill will protect the integrity of the 
Social Security program for the nearly eight million Social Security 
and Supplemental Security Income (SSI) beneficiaries who are unable to 
manage their own financial affairs and must have a ``representative 
payee'' designated to receive and manage their benefits on their 
behalf.
  I would, however, like to take this opportunity to discuss an 
important Social Security issue that this bill fails to address, the 
Government Pension Offset (GPO). This unjust, arcane law prevents 
government retirees from collecting a government pension and the Social 
Security benefits entitled to them through their spouse's history of 
employment.
  The GPO current affects 335,000 people, a number that is growing by 
15,000 each year. The people hit hardest by the GPO are State and 
municipal workers. Public employees like educators, police officers, 
and firefighters should not suffer a penalty for dedicating their lives 
to public service.
  Take, for example, a teacher who has worked for 30 years and with her 
husband has managed to raise a family. After her husband passes away, 
the law prevents her from receiving most, if not all, of the Social 
Security benefits that her husband earned and rightfully belong to her. 
She would lose the benefits simply because she worked for the 
government making a modest salary.
  Mr. Speaker, Congressman Buck McKeon has introduced H.R. 594, which 
would address the Government Pension Offset issue. Even though the bill 
currently has 285 cosponsors, the House leadership has failed to bring 
it up for a vote.
  Mr. Speaker, I have heard countless people say that teachers, police 
officers and firefighters deserve to be paid better for their public 
service. Fixing the GPO is our chance to say thanks to these selfless 
individuals whose work has helped make this country what it is today. I 
ask my colleagues on both sides of the aisle to urge the leadership to 
bring this issue to the floor during this session of Congress.
  Mr. REYES. Mr. Speaker, I rise in strong opposition to H.R. 743, the 
Social Security Protection Act. I support provisions in the bill to 
better protect Social Security beneficiaries from fraud. However, I 
cannot support the legislation because it would also seriously harm the 
retirement of teachers, firefighters, police officers, and other State 
and local government workers in my congressional district of El Paso, 
Texas by subjecting them to the government pension offset.
  Some public employees in my State have found a way to protect their 
retirement benefits from the unfair government pension offset, which 
targets public servants by refusing them their full spousal benefits 
under Social Security. The bill before us today would block these 
employees from protecting their benefits, subjecting them to the 
government pension offset and denying them the spousal benefits they 
rightfully deserve.
  Among those hardest hit by this legislation will be women, and 
particularly widows, who very often rely on spousal benefits to make 
ends meet in their retirement. Many are not aware of the government 
pension offset, and will only learn of it as they prepare for 
retirement, when it is too late to make alternative plans.
  We need to do more to support those who have dedicated their working 
lives to serving the public, rather than undermining their opportunity 
for a secure retirement with this bill. Therefore, I have cosponsored 
H.R. 594, the Social Security Fairness Act, which would

[[Page 1613]]

allow all public employees to collect full spousal benefits.
  Mr. Speaker, I urge my colleagues to show their support for teachers, 
and all of our hard-working public servants, by opposing this terribly 
unfair bill.
  Mr. DELAHUNT. Mr. Speaker, I rise today to highlight the inexplicable 
failure of the U.S. Congress to address the inequities of the 
Government Pension Offset (GPO) and Windfall Elimination Provision 
(WEP). For more than 20 years, the GPO and WEP have created enormous 
burdens for many public service retirees.
  More than half of the Members of this House want change; no fewer 
than 285 of my colleagues have co-sponsored bipartisan legislation for 
outright repeal of the GPO and WEP. But the House leadership won't even 
allow debate on the question.
  The legislation before this chamber today will help protect many 
vulnerable beneficiaries from fraud and contains many other important 
provisions. However, once again, the House missed a perfect opportunity 
to repeal both the GPO and WEP.
  Both the GPO and WEP unfairly reduce Social Security benefits for 
retirees who otherwise qualify, simply because they at some point 
worked in jobs covered by another government pension. In particular, 
the GPO and WEP penalize those who had short or intermittent careers, 
or who blended private jobs with stints in public service.
  Often, these are people already losing out in their overall earnings 
because they chose to make a meaningful contribution to society in 
roles that just don't pay well. Think of those in your community who 
teach your children, fight your fires and keep your streets safe. 
Chances are, you're thinking of people who are suffering the impact of 
the GPO or WEP.
  Because most paid Social Security taxes somewhere along the way, 
these people planned for retirement fully anticipating both pension and 
Social Security benefits. But when these teachers, police officers, and 
firefighters retired, they discovered all or much of their expected 
Social Security benefits wiped out by the WEP or GPO. In the case of 
the WEP, the Social Security benefit is reduced by up to 60 percent. If 
the GPO is triggered, it reduces a retiree's spousal benefit by two-
thirds.
  A Barnstable teacher wrote to me about her circumstances:

       I am a recently divorced woman, age 56, who has worked in 
     the school district for five years. Before taking this job I 
     was an at-home mother. Although I get very minimal alimony 
     (which I don't always receive) I face the grim reality of 
     what I will live on when--and if--I can retire. Having paid 
     the Social Security system for many years before having 
     children, the GPO and WEP would not permit me to collect on 
     what I paid into the system. I also understand that if my ex-
     husband were to die, the amount I would be able to collect 
     from his Social Security would also be cut.

  Countless heart-wrenching personal stories dramatically illustrate 
the impact of these unfair benefit reductions. In my home state of 
Massachusetts, over 18,000 retirees are being penalized by the WEP. 
When it comes to the GPO, almost 15,000 are affected--and over a third 
are widows or widowers.
  Consider this letter I received from a widow in Hull, MA:

       I am being punished because I worked for the Town for the 
     past 23 years. My husband passed away after only receiving 
     Social Security disability for six months. He worked 40 years 
     toward his Social Security. Many people do not know about 
     this penalty and find out when they go to collect their 
     Social Security that they cannot receive what they totally 
     deserve . . .

  From a Marshfield, MA teacher:

       If my husband should pre-decease me, I am not eligible for 
     his Social Security and would suffer a serious financial 
     burden. I stayed at home to raise four children, while my 
     husband worked six days a week and long hours and contributed 
     the maximum to Social Security. I reentered the workforce 
     late in life (to help pay for college tuitions) and made the 
     mistake of getting employment with our local municipality.

  From a 10-year employee of the town of Duxbury, MA:

       As I have been a part-time employee, my pension will be 
     quite small, about $300 a month. I worked many years under 
     Social Security with full and part-time jobs. As my Social 
     Security would be reduced from $600 to $400 it does not leave 
     much to live on, never mind paying for medical insurance.

  From a Sagamore Beach widow:

       I recently had two more friends die after waiting since 
     1983 to receive help on the Government Pension Offset issue. 
     If Congress waits much longer, they won't have many of us 
     left to help.

  It is particularly heartbreaking that retired women comprise over 70 
percent of those penalized by the GPO reduction of spousal benefits. 
Many sacrificed to stay home and raise children in the 1940s, 1950s and 
1960s--then went to work later in life. In retirement, they are hit 
especially hard. Not only did they face the challenges of a workplace 
that paid them far less than their male counterparts; now they face 
similarly diminished opportunities to enjoy their senior years. Many 
are widows with meager pensions, who now face drastically reduced 
financial support with the death of a spouse--and must also contend 
with reduced spousal Social Security benefits.
  During this 108th Congress, we had strong support for bills that 
would have modified or repealed the WEP and GPO. We had significant 
bipartisan endorsement and literally hundreds of senior organizations 
calling for action.
  In May of last year, we heard compelling testimony about the impact 
of these provisions in the House Ways and Means Social Security 
Subcommittee hearing. Chuck Canterbury, National President of the 
Fraternal Order of Police described why police officers in particular 
are penalized by the WEP:

       Owing to the physical demands of the job, a law enforcement 
     officer is likely to retire between the ages of 45 and 60. 
     After 20 or 25 years on the job, many law enforcement 
     officers are likely to begin second careers and hold jobs 
     that do pay into the Social Security system. Even more 
     officers are likely to ``moonlight,'' that is, hold second or 
     even third jobs throughout their law enforcement career in 
     order to augment their income. This creates an unjust 
     situation that too many of our members find themselves in: 
     they are entitled to a State or local retirement benefit 
     because they worked 20 or more years keeping their streets 
     and neighborhoods safe, and also working at a job or jobs in 
     which they paid into Social Security, entitling them to that 
     benefit as well. However, because of the WEP, if their second 
     career resulted in less than twenty (20) years of substantial 
     earnings, upon reaching the age they are eligible to collect 
     Social Security, they will discover that they lose sixty 
     percent (60%) of the benefit for which they were taxed! 
     Actuarially speaking, I doubt many officers will live long 
     enough to ``break even''--that is collect the money they paid 
     into the system, let alone receive any ``windfall.''

  Even if the personal circumstances of today's public sector retirees 
fail to move you, consider the fact that it gets harder every day to 
recruit and retain people for public service jobs. Compared with the 
private sector, public services jobs offer significantly less pay and 
benefits. Personal satisfaction, while a powerful motivator, begins to 
fade when you realize you won't be able to put food on the table during 
retirement. We'll never attract the best possible candidates to public 
service unless we remove the stark disincentives characterized by the 
WEP and GPO.
  Today this Congress failed to address the needs of almost one million 
former government employees who have already lost retirement dollars 
due to the GPO and WEP. Millions more face losses in the future. These 
are people we need, in every community, doing jobs that often keep us 
safe and secure in an era of unparalleled uncertainty.
  Mr. SHAW. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. All time for debate having expired, pursuant 
to House Resolution 520, the previous question is ordered.
  The question is on the motion offered by the gentleman from Florida 
(Mr. Shaw).
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.
  Mr. GREEN of Texas. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Without objection, further proceedings on 
this motion will be postponed.
  There was no objection.

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