[108th Congress Public Law 203]
[From the U.S. Government Printing Office]


[DOCID: f:publ203.108]

[[Page 118 STAT. 493]]

Public Law 108-203
108th Congress

                                 An Act


 
 To amend the Social Security Act and the Internal Revenue Code of 1986 
 to provide additional safeguards for Social Security and Supplemental 
  Security Income beneficiaries with representative payees, to enhance 
      program protections, and for other purposes. <<NOTE: Mar. 2, 
                          2004 -  [H.R. 743]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Social Security Protection 
Act of 2004.>> assembled,

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This <<NOTE: 42 USC 1305 note.>> Act may be cited 
as the ``Social Security Protection Act of 2004''.

    (b) Table of Contents.--The table of contents for this Act 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.

[[Page 118 STAT. 494]]

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.
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. Sixty-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.

[[Page 118 STAT. 495]]

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 <<NOTE: Certification.>> 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).''.

[[Page 118 STAT. 496]]

            (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

[[Page 118 STAT. 497]]

the meaning of the term `use and benefit' for purposes of this 
clause.''.
    (d) Effective Date.--The <<NOTE: Applicability. 42 USC 405 
note.>> 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) <<NOTE: Regulations.>> For purposes of this subsection, the 
term `certified community-based nonprofit social service agency' means a 
community-based nonprofit social service agency which is in compliance 
with requirements, under regulations which shall be prescribed by the 
Commissioner, for annual certification to the Commissioner that it is 
bonded in accordance with requirements specified by the Commissioner and 
that it is licensed in each State in which it serves as a representative 
payee (if licensing is available in the State) in accordance with 
requirements specified by the Commissioner. <<NOTE: Records.>> 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'';

[[Page 118 STAT. 498]]

                          (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) <<NOTE: Regulations.>> 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. <<NOTE: Records.>> 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 <<NOTE: 42 USC 405.>> 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) <<NOTE: Deadline. Reports.>> 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

[[Page 118 STAT. 499]]

        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 <<NOTE: Deadline.>> 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.''.

[[Page 118 STAT. 500]]

            (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) <<NOTE: Deadline. Reports.>> 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:

[[Page 118 STAT. 501]]

            ``(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) <<NOTE: Identifying information.>> Notwithstanding the 
provisions of section 552a of title 5, United States Code, or any other 
provision of Federal or State law (other than section 6103 of the 
Internal Revenue Code of 1986 and section 1106(c) of this Act), the 
Commissioner shall furnish any Federal, State, or local law enforcement 
officer, upon the written request of the officer, with the current 
address, social security account number, and photograph (if applicable) 
of any person investigated under this paragraph, if the officer 
furnishes the Commissioner with the name of such person and such other 
identifying information as may reasonably be required by the 
Commissioner to establish the unique identity of such person, and 
notifies the Commissioner that--
            ``(I) such person is described in section 202(x)(1)(A)(iv),
            ``(II) such person has information that is necessary for the 
        officer to conduct the officer's official duties, and
            ``(III) the location or apprehension of such person is 
        within the officer's official duties.'';
            (3) in subparagraph (C)(i)(II)--
                    (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 a 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) <<NOTE: Identifying information.>> 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

[[Page 118 STAT. 502]]

        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) <<NOTE: Identifying information.>> 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

[[Page 118 STAT. 503]]

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 <<NOTE: 42 USC 405 note.>> 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. <<NOTE: Deadline.>> 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

[[Page 118 STAT. 504]]

        be treated as a misused part of the individual's benefit for 
        purposes of subparagraphs (E) and (F). The Commissioner''.

    (c) Effective Date.--The <<NOTE: Applicability. 42 USC 405 
note.>> 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. <<NOTE: Certification.>> Subject to subparagraph (B), upon 
recovering all or any part of such amount, the Commissioner shall 
certify an amount equal to the recovered amount for payment to such 
individual or such individual's alternative representative payee.

    ``(B) The total of the amount certified for payment to such 
individual or such individual's alternative representative payee under 
subparagraph (A) and the amount certified for payment under paragraph 
(5) may not exceed the total benefit amount misused by the 
representative payee with respect to such individual.''.
    (b) Title VIII Amendment.--Section 807 of such Act (as amended by 
section 102(b)(2)) is amended further by adding at the end the 
following:
    ``(l) Liability for Misused Amounts.--
            ``(1) In general.--If the Commissioner of Social Security or 
        a court of competent jurisdiction determines that a 
        representative payee that is not a Federal, State, or local 
        government agency has misused all or part of a qualified 
        individual's benefit that was paid to such representative payee 
        under this section, the representative payee shall be liable for 
        the amount misused, and such amount (to the extent not repaid by 
        the representative payee) shall be treated as an overpayment of 
        benefits under this title to the representative payee for all 
        purposes of this Act and related laws pertaining to the recovery 
        of such overpayments. Subject to paragraph (2), upon recovering 
        all or any part of such amount, the Commissioner shall make 
        payment of an amount equal to the recovered amount to such 
        qualified

[[Page 118 STAT. 505]]

        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 <<NOTE: Applicability. 42 USC 405 
note.>> 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.''.

[[Page 118 STAT. 506]]

    (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 <<NOTE: 42 USC 405 note.>> 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) <<NOTE: Deadline. Reports.>> 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.''.

[[Page 118 STAT. 507]]

                         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 <<NOTE: Applicability. 42 USC 1320a-8 
note.>> 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,'';

[[Page 118 STAT. 508]]

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

shall be subject to,''.
    (b) Clarification of Treatment of Recovered Amounts.--Section 
1129(e)(2)(B) of such Act (42 U.S.C. 1320a-8(e)(2)(B)) is amended by 
striking ``In the case of amounts recovered arising out of a 
determination relating to title VIII or XVI,'' and inserting ``In the 
case of any other amounts recovered under this section,''.
    (c) Conforming Amendments.--
            (1) Section 1129(b)(3)(A) of such Act (42 U.S.C. 1320a-
        8(b)(3)(A)) is amended by striking ``charging fraud or false 
        statements''.
            (2) Section 1129(c)(1) of such Act (42 U.S.C. 1320a-8(c)(1)) 
        is amended by striking ``and representations'' and inserting ``, 
        representations, or actions''.
            (3) Section 1129(e)(1)(A) of such Act (42 U.S.C. 1320a-
        8(e)(1)(A)) is amended by striking ``statement or representation 
        referred to in subsection (a) was made'' and inserting 
        ``violation occurred''.

    (d) Effective Date.--The <<NOTE: Applicability. 42 USC 1320a-8 
note.>> 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.

[[Page 118 STAT. 509]]

SEC. 202. <<NOTE: Effective date. Records. 42 USC 902 note.>> 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--

[[Page 118 STAT. 510]]

            ``(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

[[Page 118 STAT. 511]]

            ``(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 <<NOTE: 42 USC 402 note.>> amendments made 
by this section shall take effect on the first day of the first month 
that begins on or after the date that is 9 months after the date of 
enactment of this Act.

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

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

    ``(4)(A) No person shall offer, for a fee, to assist an individual 
to obtain a product or service that the person knows or should know is 
provided free of charge by the Social Security Administration unless, at 
the time the offer is made, the person provides to the individual to 
whom the offer is tendered a notice that--
            ``(i) explains that the product or service is available free 
        of charge from the Social Security Administration, and
            ``(ii) complies with standards prescribed by the 
        Commissioner of Social Security respecting the content of such 
        notice and its placement, visibility, and legibility.

    ``(B) Subparagraph (A) shall not apply to any offer--
            ``(i) to serve as a claimant representative in connection 
        with a claim arising under title II, title VIII, or title XVI; 
        or
            ``(ii) to prepare, or assist in the preparation of, an 
        individual's plan for achieving self-support under title XVI.''; 
        and
            (2) in the heading, by striking ``prohibition of misuse of 
        symbols, emblems, or names in reference'' and inserting 
        ``prohibitions relating to references''.

    (b) Effective Date.--The <<NOTE: Applicability. 42 USC 1320b-10 
note.>> 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. <<NOTE: Regulations. Deadline.>> The Commissioner shall 
promulgate such final regulations within 1 year after the date of the 
enactment of this Act.

[[Page 118 STAT. 512]]

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:

    ``Sec. 1129B. <<NOTE: 42 USC 1320a-8b.>> 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',

[[Page 118 STAT. 513]]

        `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 <<NOTE: Applicability. 42 USC 1320b-10 
note.>> 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 <<NOTE: Applicability. 42 USC 422 
note.>> 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).

[[Page 118 STAT. 514]]

    ``(2) <<NOTE: Applicability.>> 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 <<NOTE: Applicability.>> 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

[[Page 118 STAT. 515]]

        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 <<NOTE: Certification.>> the case of funds paid to 
                the Commissioner of Social Security pursuant to 
                paragraph (1)(B), the Commissioner of Social Security 
                shall certify for payment to the individual described in 
                such paragraph an amount equal to the lesser of the 
                amount of the funds so paid or the individual's 
                outstanding financial loss as described in such 
                paragraph, except that such amount may be reduced by any 
                overpayment of benefits owed under this title, title II, 
                or title XVI by the individual.''.

    (c) Amendments to Title XVI.--Section 1632 of the Social Security 
Act (42 U.S.C. 1383a) is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following:

    ``(b)(1) Any Federal court, when sentencing a defendant convicted of 
an offense under subsection (a), may order, in addition to or in lieu of 
any other penalty authorized by law, that the defendant make restitution 
to the Commissioner of Social Security, in any case in which such 
offense results in--
            ``(A) the Commissioner of Social Security making a benefit 
        payment that should not have been made, or
            ``(B) an individual suffering a financial loss due to the 
        defendant's violation of subsection (a) in his or her capacity 
        as the individual's representative payee appointed pursuant to 
        section 1631(a)(2).

    ``(2) <<NOTE: Applicability.>> 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) <<NOTE: Certification.>> 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)''.

[[Page 118 STAT. 516]]

    (d) Effective Date.--The <<NOTE: Applicability. 42 USC 408 
note.>> 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:

    ``(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

[[Page 118 STAT. 517]]

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 <<NOTE: 42 USC 404 note.>> 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.

[[Page 118 STAT. 518]]

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 <<NOTE: Applicability. 42 USC 414 
note.>> amendments made by this section apply to benefit applications 
based on social security account numbers issued on or after January 1, 
2004.

[[Page 118 STAT. 519]]

   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 <<NOTE: Applicability. 42 USC 406 
note.>> 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';

[[Page 118 STAT. 520]]

            ``(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.

[[Page 118 STAT. 521]]

    ``(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 <<NOTE: 42 USC 1383 note.>> Date.--
            (1) In general.--
        The <<NOTE: Applicability. Notice.>> 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. <<NOTE: 42 USC 406 note.>> 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.

[[Page 118 STAT. 522]]

    (b) Standards for Inclusion in Demonstration Project.--Fee-
withholding procedures may be extended under the demonstration project 
carried out pursuant to subsection (a) to any non-attorney 
representative only if such representative meets at least the following 
prerequisites:
            (1) The representative has been awarded a bachelor's degree 
        from an accredited institution of higher education, or has been 
        determined by the Commissioner to have equivalent qualifications 
        derived from training and work experience.
            (2) The representative has passed an examination, written 
        and administered by the Commissioner, which tests knowledge of 
        the relevant provisions of the Social Security Act and the most 
        recent developments in agency and court decisions affecting 
        titles II and XVI of such Act.
            (3) The representative has secured professional liability 
        insurance, or equivalent insurance, which the Commissioner has 
        determined to be adequate to protect claimants in the event of 
        malpractice by the representative.
            (4) The representative has undergone a criminal background 
        check to ensure the representative's fitness to practice before 
        the Commissioner.
            (5) The representative demonstrates ongoing completion of 
        qualified courses of continuing education, including education 
        regarding ethics and professional conduct, which are designed to 
        enhance professional knowledge in matters related to entitlement 
        to, or eligibility for, benefits based on disability under 
        titles II and XVI of such Act. Such continuing education, and 
        the instructors providing such education, shall meet such 
        standards as the Commissioner may prescribe.

    (c) Assessment of Fees.--
            (1) In general.--The Commissioner may assess representatives 
        reasonable fees to cover the cost to the Social Security 
        Administration of administering the prerequisites described in 
        subsection (b).
            (2) Disposition of fees.--Fees collected under paragraph (1) 
        shall be credited to the Federal Old-Age and Survivors Insurance 
        Trust Fund and the Federal Disability Insurance Trust Fund, or 
        deposited as miscellaneous receipts in the general fund of the 
        Treasury, based on such allocations as the Commissioner of 
        Social Security determines appropriate.
            (3) Authorization of appropriations.--The fees authorized 
        under this subparagraph shall be collected and available for 
        obligation only to the extent and in the amount provided in 
        advance in appropriations Acts. Amounts so appropriated are 
        authorized to remain available until expended for administering 
        the prerequisites described in subsection (b).

    (d) Notice <<NOTE: Deadline.>> 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

[[Page 118 STAT. 523]]

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 <<NOTE: Deadlines.>> 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. <<NOTE: 42 USC 406 note.>> 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;

[[Page 118 STAT. 524]]

                          (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 <<NOTE: Deadline.>> 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).

[[Page 118 STAT. 525]]

            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:

[[Page 118 STAT. 526]]

            ``(2) Disabled beneficiary.--The term `disabled beneficiary' 
        means an individual--
                    ``(A) who is a disabled beneficiary as defined in 
                section 1148(k)(2) of this Act;
                    ``(B) who is receiving a cash payment described in 
                section 1616(a) of this Act or a supplementary payment 
                described in section 212(a)(3) of Public Law 93-66 
                (without regard to whether such payment is paid by the 
                Commissioner pursuant to an agreement under section 
                1616(a) of this Act or under section 212(b) of Public 
                Law 93-66);
                    ``(C) who, pursuant to section 1619(b) of this Act, 
                is considered to be receiving benefits under title XVI 
                of this Act; or
                    ``(D) who is entitled to benefits under part A of 
                title XVIII of this Act by reason of the penultimate 
                sentence of section 226(b) of this Act.''.
            (2) Effective date.--The <<NOTE: Applicability. 42 
        USC 1320b-20 note.>> 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 <<NOTE: Applicability. 42 
        USC 1320b-21 note.>> 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:

[[Page 118 STAT. 527]]

        ``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 <<NOTE: 42 USC 1320b-19 note.>> 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. <<NOTE: 42 USC 1320b-19 note.>> GAO STUDY REGARDING THE TICKET 
            TO WORK AND SELF-SUFFICIENCY PROGRAM.

    (a) GAO Report.--Not <<NOTE: Deadline.>> 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 <<NOTE: Applicability. 42 USC 405 
note.>> 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--

[[Page 118 STAT. 528]]

            (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 <<NOTE: 42 USC 402 note.>> Dates.--
            (1) In general.--The <<NOTE: Applicability.>> 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.

[[Page 118 STAT. 529]]

SEC. 413. <<NOTE: 31 USC 1113 note.>> 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

[[Page 118 STAT. 530]]

            (5) by adding at the end the following:

    ``(2) The requirements of paragraph (1)(E) in connection with the 
surviving husband of an individual shall be treated as satisfied if--
            ``(A) the individual had been married prior to the 
        individual's marriage to the surviving husband,
            ``(B) the prior husband was institutionalized during the 
        individual's marriage to the prior husband due to mental 
        incompetence or similar incapacity,
            ``(C) during the period of the prior husband's 
        institutionalization, the individual would have divorced the 
        prior husband and married the surviving husband, but the 
        individual did not do so because such divorce would have been 
        unlawful, by reason of the prior husband's institutionalization, 
        under the laws of the State in which the individual was 
        domiciled at the time (as determined based on evidence 
        satisfactory to the Commissioner of Social Security),
            ``(D) the prior husband continued to remain 
        institutionalized up to the time of his death, and
            ``(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 <<NOTE: 42 USC 416 note.>> 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 <<NOTE: 26 USC 1401, 3101, and 3111.>> 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 <<NOTE: 42 USC 418 note.>> 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

[[Page 118 STAT. 531]]

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 <<NOTE: 42 USC 903 note.>> amendment made 
by this section shall be effective as of January 1, 2003.

SEC. 418. SIXTY-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.

[[Page 118 STAT. 532]]

    ``(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)''.

[[Page 118 STAT. 533]]

                          (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 <<NOTE: 42 USC 402 note.>> Date and Transitional 
Rule.--
            (1) In general.--The <<NOTE: Applicability.>> amendments 
        made by this section shall apply with respect to applications 
        for benefits under title II of the Social Security Act filed on 
        or after the first day of the first month that begins after the 
        date of enactment of this Act, except that such amendments shall 
        not apply in connection with monthly periodic benefits of any 
        individual based on earnings while in service described in 
        section 202(k)(5)(A) of the Social Security Act (in the matter 
        preceding clause (i) thereof) if the last day of such service 
        occurs before July 1, 2004.
            (2) Transitional rule.--In the case of any individual whose 
        last day of service described in subparagraph (A) of section 
        202(k)(5) of the Social Security Act (as added by subsection (a) 
        of this section) occurs within 5 years after the date of 
        enactment of this Act--
                    (A) the 60-month period described in such 
                subparagraph (A) shall be reduced (but not to less than 
                1 month) by the number of months of such service (in the 
                aggregate and without regard to whether such months of 
                service were continuous) which--
                          (i) were performed by the individual under the 
                      same retirement system on or before the date of 
                      enactment of this Act, and
                          (ii) constituted ``employment'' as defined in 
                      section 210 of the Social Security Act; and
                    (B) months of service necessary to fulfill the 60-
                month period as reduced by subparagraph (A) of this 
                paragraph must be performed after the date of enactment 
                of this Act.

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

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

[[Page 118 STAT. 534]]

            (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 <<NOTE: Applicability. 42 USC 1320b-13 
note.>> 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.

[[Page 118 STAT. 535]]

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) <<NOTE: Deadline.>> 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 <<NOTE: 42 USC 402 note.>> 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''.

[[Page 118 STAT. 536]]

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 <<NOTE: Applicability. 42 USC 411 
note.>> 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 <<NOTE: 26 USC 3121.>> 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 <<NOTE: 26 
USC 3102.>> 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 <<NOTE: 26 USC 1402.>> is amended 
by striking ``all of the gross income'' and all that follows and 
inserting ``the gross income and deductions attributable to such

[[Page 118 STAT. 537]]

trade or business shall be treated as the gross income and deductions of 
the spouse carrying on such trade or business or, if such trade or 
business is jointly operated, treated as the gross income and deductions 
of each spouse on the basis of their respective distributive share of 
the gross income and deductions; and''.

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

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

    (c) State and Local Taxes.--Section 15(j)(6) of the Railroad 
Retirement Act of 1974 (45 U.S.C. 231n(j)(6)) is amended to read as 
follows:
            ``(6) State and local taxes.--The Trust shall be exempt from 
        any income, sales, use, property, or other similar tax or fee 
        imposed or levied by a State, political subdivision, or local 
        taxing authority. The district courts of the United States shall 
        have original jurisdiction over a civil action brought by the 
        Trust to enforce this subsection and may grant equitable or 
        declaratory relief requested by the Trust.''.

    (d) Funding.--Section 15(j)(8) of the Railroad Retirement Act of 
1974 (45 U.S.C. 231n(j)(8)) is repealed.

[[Page 118 STAT. 538]]

    (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 <<NOTE: 42 USC 1382a note.>> 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.

[[Page 118 STAT. 539]]

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 <<NOTE: Applicability. 42 USC 1382b 
note.>> 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 <<NOTE: 42 USC 1382a note.>> 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.''.

[[Page 118 STAT. 540]]

    (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 <<NOTE: 42 USC 1382 note.>> 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 <<NOTE: 42 USC 1382c note.>> 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 <<NOTE: Applicability. 42 USC 1382a 
note.>> 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.

[[Page 118 STAT. 541]]

SEC. 436. MONTHLY TREATMENT OF UNIFORMED SERVICE COMPENSATION.

    (a) Treatment of Pay as Received When Earned.--Section 1611(c) of 
the Social Security Act (42 U.S.C. 1382(c)), as amended by section 
435(a), is amended by adding at the end the following:
    ``(10) For purposes of this subsection, remuneration for service 
performed as a member of a uniformed service may be treated as received 
in the month in which it was earned, if the Commissioner of Social 
Security determines that such treatment would promote the economical and 
efficient administration of the program authorized by this title.''.
    (b) Effective Date.--The <<NOTE: Applicability. 42 USC 1382 
note.>> 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.

    Approved March 2, 2004.

LEGISLATIVE HISTORY--H.R. 743:
---------------------------------------------------------------------------

HOUSE REPORTS: No. 108-46 (Comm. on Ways and Means).
SENATE REPORTS: No. 108-176 (Comm. on Finance).
CONGRESSIONAL RECORD:
                                                        Vol. 149 (2003):
                                    Mar. 5, considered and rejected in 
                                        House.
                                    Apr. 2, considered and passed House.
                                    Dec. 9, considered and passed 
                                        Senate, amended.
                                                        Vol. 150 (2004):
                                    Feb. 11, House concurred in Senate 
                                        amendment.

                                  <all>