118 STAT. 520 PUBLIC LAW 108–203—MAR. 2, 2004 ‘‘(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 ‘deter mined 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 pre viously 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 percent age 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.
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