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[Congressional Record: August 4, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]
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CONFERENCE REPORT ON H.R. 4277
Mr. GIBBONS submitted the following conference report and statement
on the bill (H.R. 4277), to establish the Social Security
Administration as an independent agency and to make other improvements
in the old-age, survivors, and disability insurance program:
Conference Report (H. Rept. 103-670)
The committee of conference on the disagreeing votes of the
two Houses on the amendment of the Senate to the bill (H.R.
4277), to establish the Social Security Administration as an
independent agency and to make other improvements in the old-
age, survivors, and disability insurance program, having met,
after full and free conference, have agreed to recommend and
do recommend to their respective Houses as follows:
That the House recede from its disagreement to the
amendment of the Senate and agree to the same with an
amendment as follows:
In lieu of the matter proposed to be inserted by the Senate
amendment, insert the following:
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Social
Security Independence and Program Improvements Act of 1994''.
(b) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title and table of contents.
TITLE I--ESTABLISHMENT OF THE SOCIAL SECURITY ADMINISTRATION AS AN
INDEPENDENT AGENCY
Sec. 101. Establishment of Social Security Administration as an
independent agency.
Sec. 102. Commissioner and Deputy Commissioner; other officers.
Sec. 103. Social Security Advisory Board.
Sec. 104. Personnel; budgetary matters; seal of office.
Sec. 105. Transfers to the new Social Security Administration.
Sec. 106. Transition rules.
Sec. 107. Conforming amendments to titles II and XVI of the Social
Security Act.
Sec. 108. Additional conforming amendments.
Sec. 109. Rules of construction.
Sec. 110. Effective dates.
TITLE II--PROGRAM IMPROVEMENTS RELATING TO OASDI AND SSI
Sec. 201. Restrictions on payment of benefits based on disability to
substance abusers.
Sec. 202. Commission on childhood disability.
Sec. 203. Regulations regarding completion of plans for achieving self-
support.
Sec. 204. SSI eligibility for students temporarily abroad.
Sec. 205. Disregard of cost-of-living increases for continued
eligibility for work incentives.
Sec. 206. Expansion of the authority of the Social Security
Administration to prevent, detect, and terminate
fraudulent claims for OASDI and SSI benefits.
Sec. 207. Disability review required for SSI recipients who are 18
years of age.
Sec. 208. Continuing disability reviews.
Sec. 209. Exemption from adjustment in pass-along requirements.
TITLE III--MISCELLANEOUS PROGRAM IMPROVEMENTS
Sec. 301. Issuance of physical documents in the form of bonds, notes,
or certificates to the social security trust funds.
Sec. 302. GAO study regarding telephone access to local offices of the
Social Security Administration.
Sec. 303. Expansion of State option to exclude service of election
officials or election workers from coverage.
Sec. 304. Use of social security numbers by States and local
governments and Federal district courts for jury
selection purposes.
Sec. 305. Authorization for all States to extend coverage to State and
local police officers and firefighters under existing
coverage agreements.
Sec. 306. Limited exemption for Canadian ministers from certain self-
employment tax liability.
Sec. 307. Exclusion of totalization benefits from the application of
the windfall elimination provision.
Sec. 308. Exclusion of military reservists from application of the
government pension offset and windfall elimination
provisions.
Sec. 309. Repeal of the facility-of-payment provision.
Sec. 310. Maximum family benefits in guarantee cases.
Sec. 311. Authorization for disclosure of social security information
for purposes of public or private epidemiological and
similar research.
Sec. 312. Misuse of symbols, emblems, or names in reference to Social
Security Administration, Department of Health and Human
Services, or Department of the Treasury.
Sec. 313. Increased penalties for unauthorized disclosure of social
security information.
Sec. 314. Increase in authorized period for extension of time to file
annual earnings report.
Sec. 315. Extension of disability insurance program demonstration
project authority.
Sec. 316. Cross-matching of social security account number information
and employer identification number information maintained
by the Department of Agriculture.
Sec. 317. Certain transfers to railroad retirement account made
permanent.
Sec. 318. Authorization for use of social security account numbers by
Department of Labor in administration of Federal workers'
compensation laws.
Sec. 319. Coverage under FICA of Federal employees transferred
temporarily to international organizations.
Sec. 320. Extension of the FICA tax exemption and certain tax rules to
individuals who enter the United States under a visa
issued under section 101 of the Immigration and
Nationality Act.
Sec. 321. Technical and clerical amendments.
TITLE I--ESTABLISHMENT OF THE SOCIAL SECURITY ADMINISTRATION AS AN
INDEPENDENT AGENCY
SEC. 101. ESTABLISHMENT OF SOCIAL SECURITY ADMINISTRATION AS
AN INDEPENDENT AGENCY.
Section 701 of the Social Security Act (42 U.S.C. 901) is
amended to read as follows:
``SOCIAL SECURITY ADMINISTRATION
``Sec. 701. (a) There is hereby established, as an
independent agency in the executive branch of the Government,
a Social Security Administration (in this title referred to
as the `Administration').
``(b) It shall be the duty of the Administration to
administer the old-age, survivors, and disability insurance
program under title II and the supplemental security income
program under title XVI.
SEC. 102. COMMISSIONER AND DEPUTY COMMISSIONER; OTHER
OFFICERS.
Section 702 of the Social Security Act (42 U.S.C. 902) is
amended to read as follows:
``COMMISSIONER; DEPUTY COMMISSIONER; OTHER OFFICERS
``Commissioner of Social Security
``Sec. 702. (a)(1) There shall be in the Administration a
Commissioner of Social Security (in this title referred to as
the `Commissioner') who shall be appointed by the President,
by and with the advice and consent of the Senate.
``(2) The Commissioner shall be compensated at the rate
provided for level I of the Executive Schedule.
``(3) The Commissioner shall be appointed for a term of 6
years, except that the initial term of office for
Commissioner shall terminate January 19, 2001. In any case in
which a successor does not take office at the end of a
Commissioner's term of office, such Commissioner may continue
in office until the entry upon office of such a successor. A
Commissioner appointed to a term of office after the
commencement of such term may serve under such appointment
only for the remainder of such term. An individual serving in
the office of Commissioner may be removed from office only
pursuant to a finding by the President of neglect of duty or
malfeasance in office.
``(4) The Commissioner shall be responsible for the
exercise of all powers and the discharge of all duties of the
Administration, and shall have authority and control over all
personnel and activities thereof.
``(5) The Commissioner may prescribe such rules and
regulations as the Commissioner determines necessary or
appropriate to carry out the functions of the Administration.
The regulations prescribed by the Commissioner shall be
subject to the rulemaking procedures established under
section 553 of title 5, United States Code.
``(6) The Commissioner may establish, alter, consolidate,
or discontinue such organizational units or components within
the Administration as the Commissioner considers necessary or
appropriate, except that this paragraph shall not apply with
respect to any unit, component, or provision provided for by
this Act.
``(7) The Commissioner may assign duties, and delegate, or
authorize successive redelegations of, authority to act and
to render decisions, to such officers and employees of the
Administration as the Commissioner may find necessary. Within
the limitations of such delegations, redelegations, or
assignments, all official acts and decisions of such officers
and employees shall have the same force and effect as though
performed or rendered by the Commissioner.
``(8) The Commissioner and the Secretary of Health and
Human Services (in this title referred to as the `Secretary')
shall consult, on an ongoing basis, to ensure--
``(A) the coordination of the programs administered by the
Commissioner, as described in section 701, with the programs
administered by the Secretary under titles XVIII and XIX of
this Act; and
``(B) that adequate information concerning benefits under
such titles XVIII and XIX is available to the public.
``Deputy Commissioner of Social Security
``(b)(1) There shall be in the Administration a Deputy
Commissioner of Social Security (in this title referred to as
the `Deputy Commissioner') who shall be appointed by the
President, by and with the advice and consent of the Senate.
``(2) The Deputy Commissioner shall be appointed for a term
of 6 years, except that the initial term of office for the
Deputy Commissioner shall terminate January 19, 2001. In any
case in which a successor does not take office at the end of
a Deputy Commissioner's term of office, such Deputy
Commissioner may continue in office until the entry upon
office of such a successor. A Deputy Commissioner appointed
to a term of office after the commencement of such term may
serve under such appointment only for the remainder of such
term.
``(3) The Deputy Commissioner shall be compensated at the
rate provided for level II of the Executive Schedule.
``(4) The Deputy Commissioner shall perform such duties and
exercise such powers as the Commissioner shall from time to
time assign or delegate. The Deputy Commissioner shall be
Acting Commissioner of the Administration during the absence
or disability of the Commissioner and, unless the President
designates another officer of the Government as Acting
Commissioner, in the event of a vacancy in the office of the
Commissioner.
``Chief Financial Officer
``(c) There shall be in the Administration a Chief
Financial Officer appointed by the Commissioner in accordance
with section 901(a)(2) of title 31, United States Code.
``Inspector General
``(d) There shall be in the Administration an Inspector
General appointed by the President, by and with the advice
and consent of the Senate, in accordance with section 3(a) of
the Inspector General Act of 1978.''.
SEC. 103. SOCIAL SECURITY ADVISORY BOARD.
Section 703 of the Social Security Act (42 U.S.C. 903) is
amended to read as follows:
``SOCIAL SECURITY ADVISORY BOARD
``Establishment of Board
``Sec. 703. (a) There shall be established a Social
Security Advisory Board (in this section referred to as the
`Board').
``Functions of the Board
``(b) On and after the date the Commissioner takes office,
the Board shall advise the Commissioner on policies related
to the old-age, survivors, and disability insurance program
under title II and the supplemental security income program
under title XVI. Specific functions of the Board shall
include--
``(1) analyzing the Nation's retirement and disability
systems and making recommendations with respect to how the
old-age, survivors, and disability insurance program and the
supplemental security income program, supported by other
public and private systems, can most effectively assure
economic security;
``(2) studying and making recommendations relating to the
coordination of programs that provide health security with
programs described in paragraph (1);
``(3) making recommendations to the President and to the
Congress with respect to policies that will ensure the
solvency of the old-age, survivors, and disability insurance
program, both in the short-term and the long-term;
``(4) making recommendations with respect to the quality of
service that the Administration provides to the public;
``(5) making recommendations with respect to policies and
regulations regarding the old-age, survivors, and disability
insurance program and the supplemental security income
program;
``(6) increasing public understanding of the social
security system;
``(7) making recommendations with respect to a long-range
research and program evaluation plan for the Administration;
``(8) reviewing and assessing any major studies of social
security as may come to the attention of the Board; and
``(9) making recommendations with respect to such other
matters as the Board determines to be appropriate.
``Structure and Membership of the Board
``(c)(1) The Board shall be composed of 7 members who shall
be appointed as follows:
``(A) 3 members shall be appointed by the President, by and
with the advice and consent of the Senate. Not more than 2 of
such members shall be from the same political party.
``(B) 2 members (each member from a different political
party) shall be appointed by the President pro tempore of the
Senate with the advice of the Chairman and the Ranking
Minority Member of the Senate Committee on Finance.
``(C) 2 members (each member from a different political
party) shall be appointed by the Speaker of the House of
Representatives, with the advice of the Chairman and the
Ranking Minority Member of the House Committee on Ways and
Means.
``(2) The members shall be chosen on the basis of their
integrity, impartiality, and good judgment, and shall be
individuals who are, by reason of their education,
experience, and attainments, exceptionally qualified to
perform the duties of members of the Board.
``Terms of Appointment
``(d) Each member of the Board shall serve for a term of 6
years, except that--
``(1) a member appointed to a term of office after the
commencement of such term may serve under such appointment
only for the remainder of such term; and
``(2) the terms of service of the members initially
appointed under this section shall begin on October 1, 1994,
and expire as follows:
``(A) The terms of service of the members initially
appointed by the President shall expire as designated by the
President at the time of nomination, 1 each at the end of--
``(i) 2 years;
``(ii) 4 years; and
``(iii) 6 years.
``(B) The terms of service of members initially appointed
by the President pro tempore of the Senate shall expire as
designated by the President pro tempore of the Senate at the
time of nomination, 1 each at the end of--
``(i) 3 years; and
``(ii) 6 years.
``(C) The terms of service of members initially appointed
by the Speaker of the House of Representatives shall expire
as designated by the Speaker of the House of Representatives
at the time of nomination, 1 each at the end of--
``(i) 4 years; and
``(ii) 5 years.
``Chairman
``(e) A member of the Board shall be designated by the
President to serve as Chairman for a term of 4 years,
coincident with the term of the President, or until the
designation of a successor.
``Expenses and Per Diem
``(f) Members of the Board shall serve without
compensation, except that, 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.
``Meetings
``(g)(1) The Board shall meet at the call of the Chairman
(in consultation with the other members of the Board) not
less than 4 times each year to consider a specific agenda of
issues, as determined by the Chairman in consultation with
the other members of the Board.
``(2) Four members of the Board (not more than 3 of whom
may be of the same political party) shall constitute a quorum
for purposes of conducting business.
``Federal Advisory Committee Act
``(h) The Board shall be exempt from the provisions of the
Federal Advisory Committee Act (5 U.S.C. App.).
``Personnel
``(i) The Board shall, without regard to the provisions of
title 5, United States Code, relating to the competitive
service, appoint a Staff Director who shall be paid at a rate
equivalent to a rate established for the Senior Executive
Service under section 5382 of title 5, United States Code.
The Board shall appoint such additional personnel as the
Board determines to be necessary to provide adequate clerical
support for the Board, and may compensate such additional
personnel without regard to the provisions of title 5, United
States Code, relating to the competitive service.
``Authorization of Appropriations
``(j) There are authorized to be appropriated, out of the
Federal Disability Insurance Trust Fund, the Federal Old-Age
and Survivors Insurance Trust Fund, and the general fund of
the Treasury, such sums as are necessary to carry out the
purposes of this section.''.
SEC. 104. PERSONNEL; BUDGETARY MATTERS; SEAL OF OFFICE.
(a) In General.--Section 704 of the Social Security Act (42
U.S.C. 904) is amended to read as follows:
``ADMINISTRATIVE DUTIES OF THE COMMISSIONER
``Personnel
``Sec. 704. (a)(1) The Commissioner shall appoint such
additional officers and employees as the Commissioner
considers necessary to carry out the functions of the
Administration under this Act, and attorneys and experts may
be appointed without regard to the civil service laws. Except
as otherwise provided in the preceding sentence or in any
other provision of law, such officers and employees shall be
appointed, and their compensation shall be fixed, in
accordance with title 5, United States Code.
``(2) The Commissioner may procure the services of experts
and consultants in accordance with the provisions of section
3109 of title 5, United States Code.
``(3) Notwithstanding any requirements of section 3133 of
title 5, United States Code, the Director of the Office of
Personnel Management shall authorize for the Administration a
total number of Senior Executive Service positions which is
substantially greater than the number of such positions
authorized in the Social Security Administration in the
Department of Health and Human Services as of immediately
before the date of the enactment of the Social Security
Independence and Program Improvements Act of 1994 to the
extent that the greater number of such authorized positions
is specified in the comprehensive work force plan as
established and revised by the Commissioner under subsection
(b)(2). The total number of such positions authorized for the
Administration shall not at any time be less than the number
of such authorized positions as of immediately before such
date.
``Budgetary Matters
``(b)(1) The Commissioner shall prepare an annual budget
for the Administration, which shall be submitted by the
President to the Congress without revision, together with the
President's annual budget for the Administration.
``(2)(A) Appropriations requests for staffing and personnel
of the Administration shall be based upon a comprehensive
work force plan, which shall be established and revised from
time to time by the Commissioner.
``(B) Appropriations for administrative expenses of the
Administration are authorized to be provided on a biennial
basis.
``Employment Restriction
``(c) The total number of positions in the Administration
(other than positions established under section 702) which--
``(1) are held by noncareer appointees (within the meaning
of section 3132(a)(7) of title 5, United States Code) in the
Senior Executive Service, or
``(2) have been determined by the President or the Office
of Personnel Management to be of a confidential, policy-
determining, policy-making, or policy-advocating character
and have been excepted from the competitive service thereby,
may not exceed at any time the equivalent of 20 full-time
positions.
``Seal of Office
``(d) The Commissioner shall cause a seal of office to be
made for the Administration of such design as the
Commissioner shall approve. Judicial notice shall be taken of
such seal.
``Data Exchanges
``(e)(1) Notwithstanding any other provision of law
(including subsections (b), (o), (p), (q), (r), and (u) of
section 552a of title 5, United States Code)--
``(A) the Secretary shall disclose to the Commissioner any
record or information requested in writing by the
Commissioner for the purpose of administering any program
administered by the Commissioner, if records or information
of such type were disclosed to the Commissioner of Social
Security in the Department of Health and Human Services under
applicable rules, regulations, and procedures in effect
before the date of the enactment of the Social Security
Independence and Program Improvements Act of 1994; and
``(B) the Commissioner shall disclose to the Secretary or
to any State any record or information requested in writing
by the Secretary to be so disclosed for the purpose of
administering any program administered by the Secretary, if
records or information of such type were so disclosed under
applicable rules, regulations, and procedures in effect
before the date of the enactment of the Social Security
Independence and Program Improvements Act of 1994.
``(2) The Commissioner and the Secretary shall enter into
an agreement under which the Commissioner provides the
Secretary data concerning the quality of the services and
information provided to beneficiaries of the programs under
titles XVIII and XIX and the administrative services provided
by the Social Security Administration in support of such
programs. Such agreement shall stipulate the type of data to
be provided and the terms and conditions under which the data
are to be provided.
``(3) The Commissioner and the Secretary shall periodically
review the need for exchanges of information not referred to
in paragraph (1) or (2) and shall enter into such agreements
as may be necessary and appropriate to provide information to
each other or to States in order to meet the programmatic
needs of the requesting agencies.
``(4)(A) Any disclosure from a system of records (as
defined in section 552a(a)(5) of title 5, United States Code)
pursuant to this subsection shall be made as a routine use
under subsection (b)(3) of section 552a of such title (unless
otherwise authorized under such section 552a).
``(B) Any computerized comparison of records, including
matching programs, between the Commissioner and the Secretary
shall be conducted in accordance with subsections (o), (p),
(q), (r), and (u) of section 552a of title 5, United States
Code.
``(5) The Commissioner and the Secretary shall each ensure
that timely action is taken to establish any necessary
routine uses for disclosures required under paragraph (1) or
agreed to pursuant to paragraph (3).''.
(b) Report on SES Positions under Comprehensive Work Force
Plan.--Within 60 days after the establishment by the
Commissioner of Social Security of the comprehensive work
force plan required under section 704(b)(2) of the Social
Security Act (as amended by this Act), the Director of the
Office of Personnel Management shall transmit to the
Committee on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate a report
specifying the total number of Senior Executive Services
positions authorized for the Social Security Administration
in connection with such work force plan.
(c) Effective Date and Transition Rule for Certain Data
Exchange Provisions.--
(1) Effective date.--Section 704(e)(4) of the Social
Security Act (as amended by subsection (a)) shall take effect
March 31, 1996.
(2) Transition rule.--Notwithstanding any other provision
of law (including subsections (b), (o), (p), (q), (r), and
(u) of section 552a of title 5, United States Code),
arrangements for disclosure of records or other information,
and arrangements for computer matching of records, which were
in effect immediately before the date of the enactment of
this Act between the Social Security Administration in the
Department of Health and Human Services and other components
of such Department may continue between the Social Security
Administration established under section 701 of the Social
Security Act (as amended by this Act) and such Department
during the period beginning on the date of the enactment of
this Act and ending March 31, 1996.
SEC. 105. TRANSFERS TO THE NEW SOCIAL SECURITY
ADMINISTRATION.
(a) Functions.--
(1) In general.--There are transferred to the Social
Security Administration all functions of the Secretary of
Health and Human Services with respect to or in support of
the programs and activities the administration of which is
vested in the Social Security Administration by reason of
this title and the amendments made thereby. The Commissioner
of Social Security shall allocate such functions in
accordance with sections 701, 702, 703, and 704 of the Social
Security Act (as amended by this title).
(2) Functions of other agencies.--
(A) In general.--Subject to subparagraph (B), the Social
Security Administration shall also perform--
(i) the functions of the Department of Health and Human
Services, including functions relating to titles XVIII and
XIX of the Social Security Act (including adjudications,
subject to final decisions by the Secretary of Health and
Human Services), that the Social Security Administration in
such Department performed as of immediately before the date
of the enactment of this Act, and
(ii) the functions of any other agency for which
administrative responsibility was vested in the Social
Security Administration in the Department of Health and Human
Services as of immediately before the date of the enactment
of this Act.
(B) Rules governing continuation of functions in the
administration.--The Social Security Administration shall
perform, on behalf of the Secretary of Health and Human
Services (or the head of any other agency, as applicable),
the functions described in subparagraph (A) in accordance
with the same financial and other terms in effect on the day
before the date of the enactment of this Act, except to the
extent that the Commissioner and the Secretary (or other
agency head, as applicable) agree to alter such terms
pertaining to any such function or to terminate the
performance by the Social Security Administration of any such
function.
(b) Personnel, Assets, Etc.--
(1) In general.--There are transferred from the Department
of Health and Human Services to the Social Security
Administration, for appropriate allocation by the
Commissioner of Social Security in the Social Security
Administration--
(A) the personnel employed in connection with the functions
transferred by this title and the amendments made thereby;
and
(B) the assets, liabilities, contracts, property, records,
and unexpended balance of appropriations, authorizations,
allocations, and other funds employed, held, or used in
connection with such functions, arising from such functions,
or available, or to be made available, in connection with
such functions.
(2) Unexpended funds.--Unexpended funds transferred
pursuant to this subsection shall be used only for the
purposes for which the funds were originally appropriated.
(3) Employment protections.--
(A) In general.--During the 1-year period beginning March
31, 1995,--
(i) the transfer pursuant to this section of any full-time
personnel (except special Government employees) and part-time
personnel holding permanent positions shall not cause any
such personnel to be separated or reduced in grade or
compensation solely as a result of such transfer, and
(ii) except as provided in subparagraph (B), any such
personnel who were not employed in the Social Security
Administration in the Department of Health and Human Services
immediately before the date of the enactment of this Act
shall not be subject to directed reassignment to a duty
station outside their commuting area.
(B) Special rules.--
(i) In the case of personnel whose duty station is in the
Washington, District of Columbia, commuting area immediately
before March 31, 1995, subparagraph (A)(ii) shall not apply
with respect to directed reassignment to a duty station in
the Baltimore, Maryland, commuting area after September 30,
1995.
(ii) In the case of personnel whose duty station is in the
Baltimore, Maryland, commuting area immediately before March
31, 1995, subparagraph (A)(ii) shall not apply with respect
to directed reassignment to a duty station in the Washington,
District of Columbia, commuting area after September 30,
1995.
(4) Office space.--Notwithstanding section 7 of the Public
Buildings Act of 1959 (40 U.S.C. 606), and subject to
available appropriations, the Administrator of General
Services may, after consultation with the Commissioner of
Social Security and under such terms and conditions as the
Administrator finds to be in the interests of the United
States--
(A) acquire occupiable space in the metropolitan area of
Washington, District of Columbia, for housing the Social
Security Administration, and
(B) renovate such space as necessary.
(c) Inter-Agency Transfer Arrangement.--The Secretary of
Health and Human Services and the Commissioner of Social
Security shall enter into a written inter-agency transfer
arrangement (in this subsection referred to as the
``arrangement''), which shall be effective March 31, 1995.
Transfers made pursuant to this section shall be in
accordance with the arrangement, which shall specify the
personnel and resources to be transferred as provided under
this section. The terms of such arrangement shall be
transmitted not later than January 1, 1995, to the Committee
on Ways and Means of the House of Representatives, to the
Committee on Finance of the Senate, and to the Comptroller
General of the United States. Not later than February 15,
1995, the Comptroller General shall submit a report to each
such Committee setting forth an evaluation of such
arrangement.
SEC. 106. TRANSITION RULES.
(a) Transition Rules Relating to Officers of the Social
Security Administration.--
(1) Appointment of initial commissioner of social
security.--The President shall nominate for appointment the
initial Commissioner of Social Security to serve as head of
the Social Security Administration established under section
701 of the Social Security Act (as amended by this Act) not
later than 60 days after the date of the enactment of this
Act.
(2) Assumption of office of initial commissioner before
effective date of new agency.--If the appointment of the
initial Commissioner of Social Security pursuant to section
702 of the Social Security Act (as amended by this Act) is
confirmed by the Senate pursuant to such section 702 before
March 31, 1995, the individual shall take office as
Commissioner immediately upon confirmation, and, until March
31, 1995, such Commissioner shall perform the functions of
the Commissioner of Social Security in the Department of
Health and Human Services.
(3) Treatment of inspector general and other
appointments.--At any time on or after the date of the
enactment of this Act, any of the officers provided for in
section 702 of the Social Security Act (as amended by this
title) and any of the members of the Social Security Advisory
Board provided for in section 703 of such Act (as so amended)
may be nominated and take office, under the terms and
conditions set out in such sections.
(4) Compensation for initial officers and board members
before effective date of new agency.--Funds available to any
official or component of the Department of Health and Human
Services, functions of which are transferred to the
Commissioner of Social Security or the Social Security
Administration by this title, may, with the approval of the
Director of the Office of Management and Budget, be used to
pay the compensation and expenses of any officer or employee
of the new Social Security Administration and of any member
or staff of the Social Security Advisory Board who takes
office pursuant to this subsection before March 31, 1995,
until such time as funds for that purpose are otherwise
available.
(5) Interim role of current commissioner after effective
date of new agency.--In the event that, as of March 31, 1995,
an individual appointed to serve as the initial Commissioner
of Social Security has not taken office, until such initial
Commissioner has taken office, the officer serving on March
31, 1995, as Commissioner of Social Security (or Acting
Commissioner of Social Security, if applicable) in the
Department of Health and Human Services shall, while
continuing to serve as such Commissioner of Social Security
(or Acting Commissioner of Social Security), serve as
Commissioner of Social Security (or Acting Commissioner of
Social Security, respectively) in the Social Security
Administration established under such section 701 and shall
assume the powers and duties under such Act (as amended by
this Act) of the Commissioner of Social Security in the
Social Security Administration as so established under such
section 701. In the event that, as of March 31, 1995, the
President has not nominated an individual for appointment to
the office of Commissioner of Social Security in the Social
Security Administration established under such section 701,
then the individual serving as Commissioner of Social
Security (or Acting Commissioner of Social Security, if
applicable) in the Department of Health and Human Services
shall become the Acting Commissioner of Social Security in
the Social Security Administration as so established under
such section 701.
(6) Interim inspector general.--The Commissioner of Social
Security may appoint an individual to assume the powers and
duties under the Inspector General Act of 1978 of Inspector
General of the Social Security Administration as established
under section 701 of the Social Security Act for a period not
to exceed 60 days. The Inspector General of the Department of
Health and Human Services may, when so requested by the
Commissioner, while continuing to serve as Inspector General
in such Department, serve as Inspector General of the Social
Security Administration established under such section 701
and shall assume the powers and duties under the Inspector
General Act of 1978 of Inspector General of the Social
Security Administration as established under such section
701. The Social Security Administration shall reimburse the
Office of Inspector General of the Department of Health and
Human Services for costs of any functions performed pursuant
to this subsection, from funds available to the
Administration at the time the functions are performed. The
authority under this paragraph to exercise the powers and
duties of the Inspector General shall terminate upon the
entry upon office of an Inspector General for the Social
Security Administration under the Inspector General Act of
1978.
(7) Abolishment of office of commissioner of social
security in the department of health and human services.--
Effective when the initial Commissioner of Social Security of
the Social Security Administration established under section
701 of the Social Security Act (as amended by this title)
takes office pursuant to section 702 of such Act (as so
amended)--
(A) the position of Commissioner of Social Security in the
Department of Health and Human Services is abolished; and
(B) section 5315 of title 5, United States Code, is amended
by striking the following:
``Commissioner of Social Security, Department of Health and
Human Services.''.
(b) Continuation of Orders, Determinations, Rules,
Regulations, Etc.--All orders, determinations, rules,
regulations, permits, contracts, collective bargaining
agreements (and ongoing negotiations relating to such
collective bargaining agreements), recognitions of labor
organizations, certificates, licenses, and privileges--
(1) which have been issued, made, promulgated, granted, or
allowed to become effective, in the exercise of functions (A)
which were exercised by the Secretary of Health and Human
Services (or the Secretary's delegate), and (B) which relate
to functions which, by reason of this title, the amendments
made thereby, and regulations prescribed thereunder, are
vested in the Commissioner of Social Security; and
(2) which are in effect immediately before March 31, 1995,
shall (to the extent that they relate to functions described
in paragraph (1)(B)) continue in effect according to their
terms until modified, terminated, suspended, set aside, or
repealed by such Commissioner, except that any collective
bargaining agreement shall remain in effect until the date of
termination specified in such agreement.
(c) Continuation of Proceedings.--The provisions of this
title (including the amendments made thereby) shall not
affect any proceeding pending before the Secretary of Health
and Human Services immediately before March 31, 1995, with
respect to functions vested (by reason of this title, the
amendments made thereby, and regulations prescribed
thereunder) in the Commissioner of Social Security, except
that such proceedings, to the extent that such proceedings
relate to such functions, shall continue before such
Commissioner. Orders shall be issued under any such
proceeding, appeals taken therefrom, and payments shall be
made pursuant to such orders, in like manner as if this title
had not been enacted, and orders issued in any such
proceeding shall continue in effect until modified,
terminated, superseded, or repealed by such Commissioner, by
a court of competent jurisdiction, or by operation of law.
(d) Continuation of Suits.--Except as provided in this
subsection--
(1) the provisions of this title shall not affect suits
commenced before March 31, 1995; and
(2) in all such suits proceedings shall be had, appeals
taken, and judgments rendered, in the same manner and effect
as if this title had not been enacted.
No cause of action, and no suit, action, or other proceeding
commenced by or against any officer in such officer's
official capacity as an officer of the Department of Health
and Human Services, shall abate by reason of the enactment of
this title. In any suit, action, or other proceeding pending
immediately before March 31, 1995, the court or hearing
officer may at any time, on the motion of the court or
hearing officer or that of a party, enter an order which will
give effect to the provisions of this subsection (including,
where appropriate, an order for substitution of parties).
(e) Continuation of Penalties.--This title shall not have
the effect of releasing or extinguishing any civil or
criminal prosecution, penalty, forfeiture, or liability
incurred as a result of any function which (by reason of this
title, the amendments made thereby, and regulations
prescribed thereunder) is vested in the Commissioner of
Social Security.
(f) Judicial Review.--Orders and actions of the
Commissioner of Social Security in the exercise of functions
vested in such Commissioner under this title and the
amendments made thereby (other than functions performed
pursuant to 105(a)(2)) shall be subject to judicial review to
the same extent and in the same manner as if such orders had
been made and such actions had been taken by the Secretary of
Health and Human Services in the exercise of such functions
immediately before March 31, 1995. Any statutory requirements
relating to notice, hearings, action upon the record, or
administrative review that apply to any function so vested in
such Commissioner shall continue to apply to the exercise of
such function by such Commissioner.
(g) Exercise of Functions.--In the exercise of the
functions vested in the Commissioner of Social Security under
this title, the amendments made thereby, and regulations
prescribed thereunder, such Commissioner shall have the same
authority as that vested in the Secretary of Health and Human
Services with respect to the exercise of such functions
immediately preceding the vesting of such functions in such
Commissioner, and actions of such Commissioner shall have the
same force and effect as when exercised by such Secretary.
SEC. 107. CONFORMING AMENDMENTS TO TITLES II AND XVI OF THE
SOCIAL SECURITY ACT.
(a) In General.--Title II of the Social Security Act (42
U.S.C. 401 et seq.) (other than section 201, section 231(c),
section 226, and section 226A) and title XVI of such Act (42
U.S.C. 1382 et seq.) (other than section 1614(f)(2)(B)) are
each amended--
(1) by striking, wherever it appears, ``Secretary of Health
and Human Services'' and inserting ``Commissioner of Social
Security'';
(2) by striking, wherever it appears, ``Department of
Health and Human Services'' and inserting ``Social Security
Administration'';
(3) by striking, wherever it appears, ``Department'' (but
only if it is not immediately succeeded by the words ``of
Health and Human Services'', and only if it is used in
reference to the Department of Health and Human Services) and
inserting ``Administration'';
(4) by striking, wherever it appears, each of the following
words (but, in the case of any such word only if such word
refers to the Secretary of Health and Human Services):
``Secretary'', ``Secretary's'', ``his'', ``him'', ``he'',
``her'', and ``she'', and inserting (in the case of the word
``Secretary'') ``Commissioner of Social Security'', (in the
case of the word ``Secretary's'') ``Commissioner's'', (in the
case of the word ``his'') ``the Commissioner's'', (in the
case of the word ``him'') ``the Commissioner'', (in the case
of the word ``her'') ``the Commissioner'' or ``the
Commissioner's'', as may be appropriate, and (in the case of
the words ``she'' or ``he'') ``the Commissioner''; and
(b) Amendments to Section 201.--
(1) Subsections (a)(3), (a)(4), (b)(1), and (b)(2) of
section 201 of such Act (42 U.S.C. 401) are amended by
striking ``Secretary of Health and Human Services'' and
inserting ``Commissioner of Social Security''.
(2) Subsections (a)(3) and (b)(1) of section 201 of such
Act (42 U.S.C. 401) are amended by striking ``such
Secretary'' and inserting ``such Commissioner''.
(3) Section 201(c) of such Act (42 U.S.C. 401(c)) is
amended--
(A) in the first sentence, by inserting ``the Commissioner
of Social Security,'' before ``the Secretary of the
Treasury''; and
(B) in the fifth sentence, by striking ``Commissioner of
Social Security'' and inserting ``Deputy Commissioner of
Social Security''.
(4) Section 201(g)(1)(A) of such Act (42 U.S.C.
401(g)(1)(A)) is amended--
(A) in clause (i), by striking ``by him and the Secretary
of Health and Human Services'' and inserting ``by the
Managing Trustee, the Commissioner of Social Security, and
the Secretary of Health and Human Services'', and by striking
``by the Department of Health and Human Services and the
Treasury Department for the administration of titles II, XVI,
and XVIII of this Act'' and inserting ``by the Department of
Health and Human Services for the administration of title
XVIII of this Act, and by the Department of the Treasury for
the administration of titles II and XVIII of this Act'';
(B) in clause (ii), by striking ``method prescribed by the
Board of Trustees under paragraph (4)'' and inserting
``applicable method prescribed under paragraph (4)'', by
striking ``the Secretary of Health and Human Services'' and
inserting ``the Commissioner of Social Security'', and by
striking ``the Department of Health and Human Services'' and
inserting ``the Social Security Administration''; and
(C) in the matter following clause (ii), by striking
``titles II, XVI, and XVIII'' in the first sentence and
inserting ``titles II and XVIII'', and by striking the last
sentence and inserting the following: ``There are hereby
authorized to be made available for expenditure, out of any
or all of the Trust Funds, such amounts as the Congress may
deem appropriate to pay the costs of the part of the
administration of this title, title XVI, and title XVIII for
which the Commissioner of Social Security is responsible, the
costs of title XVIII for which the Secretary of Health and
Human Services is responsible, and the costs of carrying out
the functions of the Social Security Administration,
specified in section 232, which relate to the administration
of provisions of the Internal Revenue Code of 1986 other than
those referred to in clause (i) of the first sentence of this
subparagraph.''.
(4)(A) Section 201(g)(1) of such Act (42 U.S.C. 401(g)(1))
is further amended by striking subparagraph (B) and inserting
the following new subparagraphs:
``(B) After the close of each fiscal year--
``(i) the Commissioner of Social Security shall determine--
``(I) the portion of the costs, incurred during such fiscal
year, of administration of this title, title XVI, and title
XVIII for which the Commissioner is responsible and of
carrying out the functions of the Social Security
Administration, specified in section 232, which relate to the
administration of provisions of the Internal Revenue Code of
1986 (other than those referred to in clause (i) of the first
sentence of subparagraph (A)), which should have been borne
by the general fund of the Treasury,
``(II) the portion of such costs which should have been
borne by the Federal Old-Age and Survivors Insurance Trust
Fund,
``(III) the portion of such costs which should have been
borne by the Federal Disability Insurance Trust Fund,
``(IV) the portion of such costs which should have been
borne by the Federal Hospital Insurance Trust Fund, and
``(V) the portion of such costs which should have been
borne by the Federal Supplementary Medical Insurance Trust
Fund, and
``(ii) the Secretary of Health and Human Services shall
determine--
``(I) the portion of the costs, incurred during such fiscal
year, of the administration of title XVIII for which the
Secretary is responsible, which should have been borne by the
general fund of the Treasury,
``(II) the portion of such costs which should have been
borne by the Federal Hospital Insurance Trust Fund, and
``(III) the portion of such costs which should have been
borne by the Federal Supplementary Medical Insurance Trust
Fund.
``(C) After the determinations under subparagraph (B) have
been made for any fiscal year, the Commisioner of Social
Security and the Secretary shall each certify to the Managing
Trustee the amounts, if any, which should be transferred from
one to any of the other such Trust Funds and the amounts, if
any, which should be transferred between the Trust Funds (or
one of the Trust Funds) and the general fund of the Treasury,
in order to ensure that each of the Trust Funds and the
general fund of the Treasury have borne their proper share of
the costs, incurred during such fiscal year, for--
``(i) the parts of the administration of this title, title
XVI, and title XVIII for which the Commissioner of Social
Security is responsible,
``(ii) the parts of the administration of title XVIII for
which the Secretary is responsible, and
``(iii) carrying out the functions of the Social Security
Administration, specified in section 232, which relate to the
administration of provisions of the Internal Revenue Code of
1986 (other than those referred to in clause (i) of the first
sentence of subparagraph (A)).
The Managing Trustee shall transfer any such amounts in
accordance with any certification so made.
``(D) The determinations required under subclauses (IV) and
(V) of subparagraph (B)(i) shall be made in accordance with
the cost allocation methodology in existence on the date of
the enactment of the Social Security Independence and Program
Improvements Act of 1994, until such time as the methodology
for making the determinations required under such subclauses
is revised by agreement of the Commissioner and the
Secretary, except that the determination of the amounts to be
borne by the general fund of the Treasury with respect to
expenditures incurred in carrying out the functions of the
Social Security Administration specified in section 232 shall
be made pursuant to the applicable method prescribed under
paragraph (4).''.
(5) Section 201(g)(2) of such Act (42 U.S.C. 401(g)(2)) is
amended, in the second sentence, by striking ``established
and maintained by the Secretary of Health and Human
Services'' and inserting ``maintained by the Commissioner of
Social Security'', and by striking ``Secretary shall
furnish'' and inserting ``Commissioner of Social Security
shall furnish''.
(6) Section 201(g)(4) of such Act (42 U.S.C. 401(g)(4)) is
amended to read as follows:
``(4) The Commissioner of Social Security shall utilize the
method prescribed pursuant to this paragraph, as in effect
immediately before the date of the enactment of the Social
Security Independence and Program Improvements Act of 1994,
for determining the costs which should be borne by the
general fund of the Treasury of carrying out the functions of
the Commissioner, specified in section 232, which relate to
the administration of provisions of the Internal Revenue Code
of 1986 (other than those referred to in clause (i) of the
first sentence of paragraph (1)(A)). If at any time or times
thereafter the Boards of Trustees of such Trust Funds
consider such action advisable, they may modify the method of
determining such costs.''.
(7) Section 201(i)(1) of such Act (42 U.S.C. 401(i)(1)) is
amended to read as follows:
``(i)(1) The Managing Trustee may accept on behalf of the
United States money gifts and bequests made unconditionally
to the Federal Old-Age and Survivors Insurance Trust Fund,
the Federal Disability Insurance Trust Fund, the Federal
Hospital Insurance Trust Fund, or the Federal Supplementary
Medical Insurance Trust Fund or to the Social Security
Administration, the Department of Health and Human Services,
or any part or officer thereof, for the benefit of any of
such Funds or any activity financed through such Funds.''.
(8) Subsections (j) and (k) of section 201 of such Act (42
U.S.C. 401) are each amended by striking ``Secretary'' each
place it appears and inserting ``Commissioner of Social
Security''.
(9) Section 201(l)(3)(B)(iii)(II) of such Act (42 U.S.C.
401(l)(3)(B)(iii)(II)) is amended by striking ``Secretary''
and inserting ``Commissioner of Social Security''.
(10) Section 201(m)(3) of such Act (42 U.S.C. 401(m)(3)) is
amended by striking ``Secretary of Health and Human
Services'' and inserting ``Commissioner of Social Security''.
(c) Amendment to Section 231.--Section 231(c) of such Act
(42 U.S.C. 431(c)) is amended by striking ``Secretary
determines'' and inserting ``Commissioner of Social Security
and the Secretary jointly determine''.
SEC. 108. ADDITIONAL CONFORMING AMENDMENTS.
(a) Amendments to Title VII.--
(1) Title VII of the Social Security Act (42 U.S.C. 901 et
seq.) is amended by adding at the end the following new
section:
``DUTIES AND AUTHORITY OF SECRETARY
``Sec. 712. The Secretary shall perform the duties imposed
upon the Secretary by this Act. The Secretary is authorized
to appoint and fix the compensation of such officers and
employees, and to make such expenditures as may be necessary
for carrying out the functions of the Secretary under this
Act. The Secretary may appoint attorneys and experts without
regard to the civil service laws.''.
(2) Section 706 of such Act (42 U.S.C. 907) is repealed.
This paragraph shall not apply with respect to the Advisory
Council for Social Security appointed in 1994.
(3) Paragraph (2) of section 709(b) of such Act (42 U.S.C.
910(b)) is amended by striking ``(as estimated by the
Secretary)'' and inserting ``(for amounts which will be paid
from the Federal Old-Age and Survivors Insurance Trust Fund
and the Federal Disability Insurance Trust Fund, as estimated
by the Commissioner, and for amounts which will be paid from
the Federal Hospital Insurance Trust and the Federal
Supplementary Medical Insurance Trust Fund, as estimated by
the Secretary)''.
(b) Amendments to Title XI.--
(1) Section 1101(a) of such Act (42 U.S.C. 1301(a)) is
amended by adding at the end the following new paragraph:
``(10) The term `Administration' means the Social Security
Administration, except where the context requires
otherwise.''.
(2) Section 1106(a) of such Act (42 U.S.C. 1306(a)) is
amended--
(A) by inserting ``(1)'' after ``(a)'';
(B) by striking ``Department of Health and Human Services''
each place it appears and inserting ``applicable agency'';
(C) by striking ``Secretary'' each place it appears and
inserting ``head of the applicable agency''; and
(D) by adding at the end the following new paragraph:
``(2) For purposes of this subsection and subsection (b),
the term `applicable agency' means--
``(A) the Social Security Administration, with respect to
matter transmitted to or obtained by such Administration or
matter disclosed by such Administration, or
``(B) the Department of Health and Human Services, with
respect to matter transmitted to or obtained by such
Department or matter disclosed by such Department.''.
(3) Section 1106(b) of such Act (42 U.S.C. 1306(b)) is
amended--
(A) by striking ``Secretary'' each place it appears and
inserting ``head of the applicable agency''; and
(B) by striking ``Department of Health and Human Services''
and inserting ``applicable agency''.
(4) Section 1106(c) of such Act (42 U.S.C. 1306(c)) is
amended--
(A) by striking ``the Secretary'' the first place it
appears and inserting ``the Commissioner of Social Security
or the Secretary''; and
(B) by striking ``the Secretary'' each subsequent place it
appears and inserting ``such Commissioner or Secretary''.
(5) Section 1106(d) of such Act (added by section 311 of
this Act) is amended--
(A) by striking ``Secretary'' the first place it appears
and inserting ``Commissioner of Social Security'';
(B) by striking ``Secretary'' the second place it appears
and inserting ``Commissioner'';
(C) by striking ``Secretary'' the third place it appears
and inserting ``Commissioner in consultation with the
Secretary of Health and Human Services''; and
(D) by striking ``Secretary'' each subsequent place it
appears and inserting ``Commissioner''.
(6) Section 1107(b) of such Act (42 U.S.C. 1307(b)) is
amended by striking ``the Secretary of Health and Human
Services'' and inserting ``the Commissioner of Social
Security or the Secretary''.
(7) Section 1110 of such Act (42 U.S.C. 1310) is amended--
(A) by striking ``he'', ``his'', and ``him'' each place
they appear (except in subsection (b)(2)(A)) and inserting
``the Commissioner'', ``the Commissioner's'', and ``the
Commissioner'', respectively;
(B) in subsection (a)(2), by inserting ``(or the
Commissioner, with respect to any jointly financed
cooperative agreement or grant concerning titles II or XVI)''
after ``Secretary'';
(C) in subsection (b)(1)--
(i) by striking ``Secretary'' each place it appears in the
first two sentences and inserting ``Commissioner'';
(ii) by striking in the third sentence ``determined by the
Secretary,'' and inserting ``determined by the Commissioner
with respect to the old-age, survivors, and disability
insurance programs under title II and the supplemental
security income program under title XVI, and by the Secretary
with respect to other titles of this Act,''; and
(iii) by striking the fourth sentence and inserting the
following new sentences: ``If, in order to carry out a
project under this subsection, the Commissioner requests a
State to make supplementary payments (or the Commissioner
makes them pursuant to an agreement under section 1616) to
individuals who are not eligible therefor, or in amounts or
under circumstances in which the State does not make such
payments, the Commissioner shall reimburse such State for the
non-Federal share of such payments from amounts appropriated
to carry out title XVI. If, in order to carry out a project
under this subsection, the Secretary requests a State to
provide medical assistance under its plan approved under
title XIX to individuals who are not eligible therefor, or in
amounts or under circumstances in which the State does not
provide such medical assistance, the Secretary shall
reimburse such State for the non-Federal share of such
assistance from amounts appropriated to carry out title XVI,
which shall be provided by the Commissioner to the Secretary
for this purpose.'';
(D) in subsection (b)(2), by striking ``Secretary'' each
place it appears and inserting ``Commissioner''; and
(E) in subsection (b), by striking paragraph (3).
(8) Subsections (b) and (c) of section 1127 of such Act (42
U.S.C. 1320a-6) are each amended by striking ``Secretary''
and inserting ``Commissioner of Social Security''.
(9) Section 1128(f) of such Act (42 U.S.C. 1320a-7(f)) is
amended--
(A) in paragraph (1), by inserting after ``section 205(g)''
the following: ``, except that, in so applying such sections
and section 205(l), any reference therein to the Commissioner
of Social Security or the Social Security Administration
shall be considered a reference to the Secretary or the
Department of Health and Human Services, respectively'', and
(B) in paragraph (3), by inserting after ``title II'' the
following: ``, except that, in so applying such section and
section 205(l), any reference therein to the Commissioner of
Social Security shall be considered a reference to the
Secretary''.
(10)(A) Section 1129 of such Act (added by section 206(b)
of this Act) is amended--
(i) by striking ``Secretary'' each place it appears and
inserting ``Commissioner of Social Security'';
(ii) in subsection (a)(1)--
(I) by striking ``exclude, as provided in section 1128,''
and inserting ``recommend that the Secretary exclude, as
provided in section 1128,''; and
(II) by striking ``and to direct'' and all that follows
through ``determines'';
(iii) in subsection (g)--
(I) by striking ``Secretary's'' and inserting
``Commissioner's''; and
(II) by striking ``the provisions'' and all that follows
and inserting the following: ``the Commissioner shall notify
the Secretary of the final determination and the reasons
therefor, and the Secretary shall then notify the entities
described in section 1128A(h) of such final determination.'';
(iv) in subsection (k), by inserting ``based on a
recommendation under subsection (a)'' after ``section 1128'';
and
(v) in subsection (l) (added by section 206(e)(1)), by
striking ``Department of Health and Human Services'' and
inserting ``Social Security Administration''.
(B) Section 206(g) of this Act is amended--
(i) by striking ``Secretary of Health and Human Services''
and inserting ``Commissioner of Social Security''; and
(ii) by striking ``Secretary has exercised'' and inserting
``Commissioner has exercised''.
(11) Section 1131 of such Act (42 U.S.C. 1320b-1) is
amended--
(A) by striking ``Secretary'' each place it appears and
inserting ``Commissioner of Social Security'';
(B) in subsection (a)(1)(A), by adding ``or'' at the end;
(C) in subsection (a)(1)(B), by striking ``or'' at the end;
(D) by striking subsection (a)(1)(C);
(E) by redesignating subsection (a)(2) as subsection
(a)(3);
(F) by inserting after subsection (a)(1) the following new
paragraph:
``(2) the Secretary makes a finding of fact and a decision
as to the entitlement under section 226 of any individual to
hospital insurance benefits under part A of title XVIII,
or''; and
(G) in the matter in subsection (a) following paragraph (3)
(as so redesignated), by striking ``he'' and inserting ``the
Commissioner of Social Security'', by striking ``paragraph
(1)'' and inserting ``paragraph (1) or (2)'', by striking
``paragraph (2)'' and inserting ``paragraph (3)'', and by
striking ``paragraph (1) or (2)(A)'' and inserting
``paragraph (1), (2), or (3)(A)''.
(12) Section 1140 of such Act (42 U.S.C. 1320b-10) (as
amended by section 312 of this Act) is amended--
(A) in subsection (a)(2)--
(i) by inserting ``(A)'' after ``(2)'';
(ii) by striking ``or of the Department of Health and Human
Services'';
(iii) by striking ``which the Secretary shall prescribe''
and inserting ``which the Commissioner of Social Security
shall prescribe''; and
(iv) by adding at the end the following new subparagraph:
``(B) No person may, for a fee, reproduce, reprint, or
distribute any item consisting of a form, application, or
other publication of the Department of Health and Human
Services unless such person has obtained specific, written
authorization for such activity in accordance with
regulations which the Secretary shall prescribe.'';
(B) in subsection (b), by striking ``the Secretary'' and
inserting ``the Commissioner or the Secretary (as
applicable)'';
(C) in subsection (c)(2), by striking ``the Secretary''
each place it appears and inserting ``the Commissioner or the
Secretary (as applicable)''; and
(D) in subsection (d), by striking ``the Office of
Inspector General of the Department of Health and Human
Services'' and inserting ``the Office of the Inspector
General of the Social Security Administration or the Office
of the Inspector General of the Department of Health and
Human Services (as appropriate)''.
(13) Section 1141 of such Act (42 U.S.C. 1320b-11) is
amended--
(A) by striking ``Secretary'' each place it appears and
inserting ``Commissioner of Social Security'';
(B) by striking ``Secretary's'' each place it appears and
inserting ``Commissioner's'';
(C) in the first sentence of subsection (a), by striking
``under the direction of the Commissioner of Social
Security,''; and
(D) in subsection (d)(6), by striking ``Department of
Health Services and inserting ``Social Security
Administration''.
(14) Section 1155 of such Act (42 U.S.C. 1320c-4) is
amended by striking ``(to the same extent as is provided in
section 205(b))'' and all that follows and inserting ``(to
the same extent as beneficiaries under title II are entitled
to a hearing by the Commissioner of Social Security under
section 205(b)). For purposes of the preceding sentence,
subsection (l) of section 205 shall apply, except that any
reference in such subsection to the Commissioner of Social
Security or the Social Security Administration shall be
deemed a reference to the Secretary or the Department of
Health and Human Services, respectively. Where the amount in
controversy is $2,000 or more, such beneficiary shall be
entitled to judicial review of any final decision relating to
a reconsideration described in this subsection.''.
(c) Amendments to Title XVIII.--
(1) Section 1817 of such Act (42 U.S.C. 1395i) is amended--
(A) in subsection (a), by striking ``Secretary of Health
and Human Services'' each place it appears and inserting
``Commissioner of Social Security'';
(B) in subsection (b), by inserting ``the Commissioner of
Social Security,'' before ``the Secretary of the Treasury'';
and
(C) in subsection (f), by striking ``Secretary of Health
and Human Services'' each place it appears and inserting
``Commissioner of Social Security''.
(2) Section 1840(a) of such Act (42 U.S.C. 1395s(a)) is
amended--
(A) in paragraph (1), by striking ``Secretary'' and
inserting ``Commissioner of Social Security'', and by adding
at the end the following new sentence: ``Such regulations
shall be prescribed after consultation with the Secretary.'';
and
(B) in paragraph (2), by striking ``Secretary of Health and
Human Services'' and inserting ``Commissioner of Social
Security''.
(3) Section 1841(b) of such Act (42 U.S.C. 1395t) is
amended by inserting ``the Commissioner of Social Security,''
before ``the Secretary of the Treasury''.
(4) Section 1872 of such Act (42 U.S.C. 1395ii) is amended
by inserting after ``title II'' the following: ``, except
that, in applying such provisions with respect to this title,
any reference therein to the Commissioner of Social Security
or the Social Security Administration shall be considered a
reference to the Secretary or the Department of Health and
Human Services, respectively''.
(5) Sections 1866(h)(1), 1869(b)(1), and 1881(g)(3) of such
Act (42 U.S.C. 1395cc(h)(1), 1395ff(b)(1), 1395rr(g)(3)) are
amended by inserting after ``section 205(g)'' the following:
``, except that, in so applying such sections and in applying
section 205(l) thereto, any reference therein to the
Commissioner of Social Security or the Social Security
Administration shall be considered a reference to the
Secretary or the Department of Health and Human Services,
respectively''.
(6) Section 1876(c)(5)(B) of such Act (42 U.S.C.
1395mm(c)(5)(B)) is amended by adding at the end the
following: ``In applying sections 205(b) and 205(g) as
provided in this subparagraph, and in applying section 205(l)
thereto, any reference therein to the Commissioner of Social
Security or the Social Security Administration shall be
considered a reference to the Secretary or the Department of
Health and Human Services, respectively.''.
(d) Amendments to Title XIX.--
(1) Section 1902(a)(10)(A)(ii)(XI) of such Act (42 U.S.C.
1396a(a)(10)(A)(ii)(XI)) is amended by striking ``Secretary''
and inserting ``Commissioner of Social Security''.
(2) Section 1905(j) of such Act (42 U.S.C. 1396d(j)) is
amended by striking ``Secretary'' and inserting
``Commissioner of Social Security''.
(3) Section 1905(q)(2) of such Act (42 U.S.C. 1396d(q)(2))
is amended by striking ``Secretary'' and inserting
``Commissioner of Social Security''.
(4) Section 1910(b)(2) of such Act (42 U.S.C. 1396i(b)(2))
is amended, in the first sentence, by inserting after
``section 205(g)'' the following: ``, except that, in so
applying such sections and in applying section 205(l)
thereto, any reference therein to the Commissioner of Social
Security or the Social Security Administration shall be
considered a reference to the Secretary or the Department of
Health and Human Services, respectively''.
(5) Section 1918 of such Act (42 U.S.C. 1396q) is amended
by inserting after ``title II'' the following: ``, except
that, in so applying such subsections, and in applying
section 205(l) thereto, with respect to this title, any
reference therein to the Commissioner of Social Security or
the Social Security Administration shall be considered a
reference to the Secretary or the Department of Health and
Human Services, respectively''.
(e) Amendments to Title 5, United States Code.--Title 5,
United States Code, is amended--
(1) by adding at the end of section 5312 the following new
item:
``Commissioner of Social Security, Social Security
Administration.'';
(2) by adding at the end of section 5313 the following new
item:
``Deputy Commissioner of Social Security, Social Security
Administration.'';
(3) by adding at the end of section 5315 the following new
item:
``Inspector General, Social Security Administration.'';
(4) by striking ``Secretary of Health, Education, and
Welfare'' each place it appears in section 8141 and inserting
``Commissioner of Social Security''; and
(5) by striking ``Secretary of Health and Human Services''
in section 8347(m)(3) and inserting ``Commissioner of Social
Security''.
(f) Amendments to Food Stamp Act of 1977.--
(1) Sections 6(c)(3) and 8(e)(6) of the Food Stamp Act of
1977 (7 U.S.C. 2015(c)(3) and 2017(e)(6)) are each amended by
inserting ``the Commissioner of Social Security and'' before
``the Secretary of Health and Human Services''.
(2) Sections 6(g), 11(j), and 16(e) of such Act (7 U.S.C.
2015(g), 2020(j), and 2025(e)) are each amended by striking
``Secretary of Health and Human Services'' each place it
appears and inserting ``Commissioner of Social Security''.
(3) Section 11(i) of such Act (7 U.S.C. 2020(i)) is amended
by adding ``, the Commissioner of Social Security'' after
``the Secretary''.
(g) Amendment to Title 14, United States Code.--Section
707(e)(3) of title 14, United States Code, is amended by
striking ``Secretary of Health and Human Services'' each
place it appears and inserting ``Commissioner of Social
Security''.
(h) Amendments to Internal Revenue Code of 1986.--
(1) Subsections (c)(1), (c)(2)(E), (e)(2), (g)(1),
(g)(2)(A), and (g)(2)(B) of section 1402 of the Internal
Revenue Code of 1986 are amended by striking ``Secretary of
Health and Human Services'' each place it appears and
inserting ``Commissioner of Social Security''.
(2) Section 3121(b)(10)(B) of such Code is amended by
striking ``Secretary of Health and Human Services'' each
place it appears and inserting ``Commissioner of Social
Security''.
(3) Section 3127 of such Code is amended by striking
``Secretary of Health and Human Services'' each place it
appears and inserting ``Commissioner of Social Security''.
(4) Section 6050F(c)(1)(A) of such Code is amended by
striking ``Secretary of Health and Human Services'' and
inserting ``Commissioner of Social Security''.
(5) Subsections (d) and (f) of section 6057 of such Code
are amended by striking ``Secretary of Health and Human
Services'' each place it appears and inserting ``Commissioner
of Social Security''.
(6) Section 6103(l)(5) of such Code is amended--
(A) by striking ``Department of Health and Human Services''
in the heading and inserting ``Social Security
Administration''; and
(B) by striking ``Secretary of Health and Human Services''
and inserting ``Commissioner of Social Security''.
(7) Subsections (d)(3)(C) and (e) of section 6402 of such
Code are amended by striking ``Secretary of Health and Human
Services'' each place it appears and inserting ``Commissioner
of Social Security''.
(8) Section 6511(d)(5) of such Code is amended by striking
``Secretary of Health and Human Services'' and inserting
``Commissioner of Social Security''.
(9)(A) Subsections (b)(2) and (h) of section 9704 of such
Code are amended by striking ``Secretary of Health and Human
Services'' and inserting ``Commissioner of Social Security''.
(B) Section 9706 of such Code is amended--
(i) by striking ``Secretary of Health and Human Services''
each place it appears and inserting ``Commissioner of Social
Security'';
(ii) in such section as amended by clause (i), by striking
``Secretary'' each place it appears and inserting
``Commissioner''; and
(iii) in subsection (d)(3), by striking ``Secretary's'' and
inserting ``Commissioner's''.
(i) Amendments to Black Lung Benefits Act.--
(1) Section 402(c) of the Black Lung Benefits Act (30
U.S.C. 902(c)) is amended by striking ``where used in part
B'' and all that follows through ``part C'' and insert
``where used in part C''.
(2) Part B of such Act (30 U.S.C. 921 et seq.) is amended
by striking ``Secretary of Health, Education, and Welfare''
each place it appears and inserting ``Commissioner of Social
Security, and by striking ``Secretary'' each place it
otherwise appears in reference to the Secretary of Health and
Human Services and inserting ``Commissioner of Social
Security''.
(3) Section 426 of such Act (30 U.S.C. 936) is amended--
(A) in subsection (a), by striking ``and the Secretary of
Health, Education, and Welfare'' and inserting ``, the
Commissioner of Social Security, and the Secretary of Health
and Human Services''; and
(B) in subsection (b), by striking ``the Secretary of
Health, Education, and Welfare'' and inserting ``the
Commissioner of Social Security''.
(4) Section 435 of such Act (30 U.S.C. 945) is amended by
striking ``Secretary of Health, Education, and Welfare'' each
place it appears and inserting ``Commissioner of Social
Security''.
(5) Section 508 of such Act (30 U.S.C. 957) is amended by
striking ``the Secretary of Health, Education, and Welfare,''
and inserting ``the Secretary of Health and Human Services,
the Commissioner of Social Security,''.
(j) Amendments to Title 31, United States Code.--
(1) Section 901(b)(2) of title 31, United States Code, is
amended by adding at the end the following:
``(H) The Social Security Administration.''.
(2) Section 3720A(f)(2) of such title is amended by
striking ``Secretary of Health and Human Services'' each
place it appears in and inserting ``Commissioner of Social
Security''.
(k) Amendments to Title 38, United States Code.--Section
5105 of title 38, United States Code, is amended--
(1) by striking ``Secretary of Health and Human Services''
each place it appears and inserting ``Commissioner of Social
Security''; and
(2) by striking the second sentence of subsection (b) and
inserting the following new sentence: ``A copy of each such
application filed with either the Secretary or the
Commissioner, together with any additional information and
supporting documents (or certifications thereof) which may
have been received by the Secretary or the Commissioner with
such application, and which may be needed by the other
official in connection therewith, shall be transmitted by the
Secretary or the Commissioner receiving the application to
the other official.''.
(l) Amendments to Inspector General Act of 1978.--
(1) Section 9(a)(1) of the Inspector General Act of 1978 (5
U.S.C. App.) is amended--
(A) by striking ``and'' at the end of suchparagraph (V);
and
(B) by adding at the end the following new subparagraph:
``(W) of the Social Security Administration, the functions
of the Inspector General of the Department of Health and
Human Services which are transferred to the Social Security
Administration by the Social Security Independence and
Program Improvements Act of 1994 (other than functions
performed pursuant to section 105(a)(2) of such Act), except
that such transfers shall be made in accordance with the
provisions of such Act and shall not be subject to
subsections (b) through (d) of this section; and''.
(2) Section 11 of such Act (5 U.S.C. App.) is amended--
(A) in paragraph (1), by inserting ``; or the Commissioner
of Social Security, Social Security Administration'' before
``; as the case may be''; and
(B) in paragraph (2), by inserting ``, or the Social
Security Administration'' before ``; as the case may be''.
(m) Section 505 of the Social Security Disability
Amendments of 1980.--Section 505 of the Social Security
Disability Amendments of 1980 is amended--
(1) in subsection (a), by striking ``Secretary of Health
and Human Services'' and inserting ``Commissioner of Social
Security'';
(2) in subsection (a)(3), by amending the first sentence to
read as follows: ``In the case of any experiment or
demonstration project under paragraph (1) which is initiated
before June 10, 1996, the Commissioner may waive compliance
with the benefit requirements of title II of the Social
Security Act, and the Secretary of Health and Human Services
may (upon the request of the Commissioner) waive compliance
with the benefits requirements of title XVIII of such Act,
insofar as is necessary for a thorough evaluation of the
alternative methods under consideration.''; and
(3) in subsections (a) and (c), by striking ``Secretary''
each place it otherwise appears and inserting
``Commissioner''.
SEC. 109. RULES OF CONSTRUCTION.
(a) References to the Department of Health and Human
Services.--Whenever any reference is made in any provision of
law (other than this title or a provision of law amended by
this title), regulation, rule, record, or document to the
Department of Health and Human Services with respect to such
Department's functions under the old-age, survivors, and
disability insurance program under title II of the Social
Security Act or the supplemental security income program
under title XVI of such Act or other functions performed by
the Social Security Administration pursuant to section
105(a)(2) of this Act, such reference shall be considered a
reference to the Social Security Administration.
(b) References to the Secretary of Health and Human
Services.--Whenever any reference is made in any provision of
law (other than this title or a provision of law amended by
this title), regulation, rule, record, or document to the
Secretary of Health and Human Services with respect to such
Secretary's functions under the old-age, survivors, and
disability insurance program under title II of the Social
Security Act or the supplemental security income program
under title XVI of such Act or other functions performed by
the Commissioner of Social Security pursuant to section
105(a)(2) of this Act, such reference shall be considered a
reference to the Commissioner of Social Security.
(c) References to Other Officers and Employees.--Whenever
any reference is made in any provision of law (other than
this title or a provision of law amended by this title),
regulation, rule, record, or document to any other officer or
employee of the Department of Health and Human Services with
respect to such officer or employee's functions under the
old-age, survivors, and disability insurance program under
title II of the Social Security Act or the supplemental
security income program under title XVI of such Act or other
functions performed by the officer or employee of the Social
Security Administration pursuant to section 105(a)(2) of this
Act, such reference shall be considered a reference to the
appropriate officer or employee of the Social Security
Administration.
SEC. 110. EFFECTIVE DATES.
(a) In General.--Except as otherwise provided in this
title, this title, and the amendments made by such title,
shall take effect March 31, 1995.
(b) Transition Rules.--Section 106 shall take effect on the
date of the enactment of this Act.
(c) Exceptions.--The amendments made by section 103,
subsections (b)(4) and (c) of section 105, and subsections
(a)(1), (e)(1), (e)(2), (e)(3), and (l)(2) of section 108
shall take effect on the date of the enactment of this Act.
TITLE II--PROGRAM IMPROVEMENTS RELATING TO OASDI AND SSI
SEC. 201. RESTRICTIONS ON PAYMENT OF BENEFITS BASED ON
DISABILITY TO SUBSTANCE ABUSERS.
(a) Amendments Relating to Benefits Based on Disability
Under Title II of the Social Security Act.--
(1) Required payment of benefits to representative
payees.--
(A) In general.--Section 205(j)(1) of the Social Security
Act (42 U.S.C. 405(j)(1)) is amended--
(i) by inserting ``(A)'' after ``(j)(1)'';
(ii) in the last sentence, by inserting ``, if the interest
of the individual under this title would be served thereby,''
after ``alternative representative payee or''; and
(iii) by adding at the end the following new subparagraph:
``(B) In the case of an individual entitled to benefits
based on disability, if alcoholism or drug addiction is a
contributing factor material to the Secretary's determination
that the individual is under a disability, certification of
payment of such benefits to a representative payee shall be
deemed to serve the interest of such individual under this
title. In any case in which such certification is so deemed
under this subparagraph to serve the interest of an
individual, the Secretary shall include, in such individual's
notification of entitlement, a notice that alcoholism or drug
addiction is a contributing factor material to the
Secretary's determination of such individual's disability and
that the Secretary is therefore required to make a
certification of payment of such individual's benefits to a
representative payee.''.
(B) Conforming amendment.--Section 205(j)(2)(D)(ii)(II) of
such Act (42 U.S.C. 402(j)(2)(D)(ii)(II)) is amended by
striking ``or under the age of 15'' and inserting ``, under
the age of 15 years, or (if alcoholism or drug addiction is a
contributing factor material to the Secretary's determination
that the individual is under a disability) is eligible for
benefits under this title by reason of disability.''.
(C) 90-day delay in deferral or suspension of benefits for
current beneficiaries.--In the case of an individual who, as
of 180 days after the date of the enactment of this Act, has
been determined to be under a disability, if alcoholism or
drug addiction is a contributing factor material to the
determination of the Secretary of Health and Human Services
that the individual is under a disability, the Secretary may,
notwithstanding clauses (i) and (ii) of section 205(j)(2)(D)
of the Social Security Act, make direct payment of benefits
to such individual during the 90-day period commencing with
the date on which such individual is provided the notice
described in subparagraph (D)(ii) of this paragraph, until
such time during such period as the selection of a
representative payee is made pursuant to section 205(j) of
such Act.
(D) Effective date.--
(i) General rule.--Except as provided in clause (ii), the
amendments made by this paragraph shall apply with respect to
benefits paid in months beginning after 180 days after the
date of the enactment of this Act.
(ii) Treatment of current beneficiaries.--In any case in
which--
(I) an individual is entitled to benefits based on
disability (as defined in section 205(j)(7) of the Social
Security Act, as amended by this section),
(II) the determination of disability was made by the
Secretary of Health and Human Services during or before the
180-day period following the date of the enactment of this
Act, and
(III) alcoholism or drug addiction is a contributing factor
material to the Secretary's determination that the individual
is under a disability,
the amendments made by this paragraph shall apply with
respect to benefits paid in months after the month in which
such individual is notified by the Secretary in writing that
alcoholism or drug addiction is a contributing factor
material to the Secretary's determination and that the
Secretary is therefore required to make a certification of
payment of such individual's benefits to a representative
payee.
(E) Study regarding feasibility, cost, and equity of
requiring representative payees for all disability
beneficiaries suffering from alcoholism or drug addiction.--
(i) Study.--As soon as practicable after the date of the
enactment of this Act, the Secretary of Health and Human
Services shall conduct a study of the representative payee
program. In such study, the Secretary shall examine--
(I) the feasibility, cost, and equity of requiring
representative payees for all individuals entitled to
benefits based on disability under title II or XVI of the
Social Security Act who suffer from alcoholism or drug
addiction, irrespective of whether the alcoholism or drug
addiction was material in any case to the Secretary's
determination of disability,
(II) the feasibility, cost, and equity of providing
benefits through non-cash means, including (but not limited
to) vouchers, debit cards, and electronic benefits transfer
systems,
(III) the extent to which child beneficiaries are afflicted
by drug addition or alcoholism and ways of addressing such
affliction, including the feasibility of requiring treatment,
and
(IV) the extent to which children's representative payees
are afflicted by drug addiction or alcoholism, and methods to
identify children's representative payees afflicted by drug
addition or alcoholism and to ensure that benefits continue
to be provided to beneficiaries appropriately.
(ii) Report.--Not later than December 31, 1995, the
Secretary shall transmit to the Committee on Ways and Means
of the House of Representatives and the Committee on Finance
of the Senate a report setting forth the findings of the
Secretary based on such study. Such report shall include such
recommendations for administrative or legislative changes as
the Secretary considers appropriate.
(2) Increased reliance on professional representative
payees.--
(A) Preference required for organizational representative
payees.--Section 205(j)(2)(C) of such Act (42 U.S.C.
405(j)(2)(C)) is amended by adding at the end the following
new clause:
``(v) In the case of an individual entitled to benefits
based on disability, if alcoholism or drug addiction is a
contributing factor material to the Secretary's determination
that the individual is under a disability, when selecting
such individual's representative payee, preference shall be
given to--
``(I) a community-based nonprofit social service agency
licensed or bonded by the State,
``(II) a Federal, State, or local government agency whose
mission is to carry out income maintenance, social service,
or health care-related activities,
``(III) a State or local government agency with fiduciary
responsibilities, or
``(IV) a designee of an agency (other than of a Federal
agency) referred to in the preceding subclauses of this
clause, if the Secretary deems it appropriate,
unless the Secretary determines that selection of a family
member would be appropriate.''.
(B) Availability of public agencies and other qualified
organizations to serve as representative payees.--
(i) Allowable fees.--Section 205(j)(4)(A) of such Act (42
U.S.C. 405(j)(4)) is amended--
(I) by redesignating clauses (i) and (ii) as subclauses (I)
and (II), respectively;
(II) by inserting ``(i)'' after ``(4)(A)'';
(III) by striking subclause (II) (as redesignated by
subclause (I) of this clause) and inserting the following:
``(II) $25.00 per month ($50.00 per month in any case in
which the individual is entitled to benefits based on
disability and alcoholism or drug addiction is a contributing
factor material to the Secretary's determination that the
individual is under a disability).'';
(IV) by inserting, after and below subclause (II) (as
amended), the following new sentence:
``The Secretary shall adjust annually (after 1995) each
dollar amount set forth in subclause (II) under procedures
providing for adjustments in the same manner and to the same
extent as adjustments are provided for under the procedures
used to adjust benefit amounts under section 215(i)(2)(A),
except that any amount so adjusted that is not a multiple of
$1.00 shall be rounded to the nearest multiple of $1.00.'';
and
(V) by adding at the end the following new clause:
``(ii) In the case of an individual who is no longer
currently entitled to monthly insurance benefits under this
title but to whom all past-due benefits have not been paid,
for purposes of clause (i), any amount of such past-due
benefits payable in any month shall be treated as a monthly
benefit referred to in clause (i)(I).''.
(ii) Inclusion of State and local agencies as qualified
organizations.--Section 205(j)(4)(B) of such Act (42 U.S.C.
405(j)(4)(B))) is amended--
(I) by inserting ``State or local government agency whose
mission is to carry out income maintenance, social service,
or health care-related activities, any State or local
government agency with fiduciary responsibilities, or any''
after ``means any'';
(II) by striking ``representative payee and which,'' and
inserting ``representative payee, if such agency,'';
(III) by striking ``, and'' at the end of clause (ii) and
inserting a period; and
(IV) by striking clause (iii).
(iii) Retroactive repeal of sunset.--Effective July 1,
1994, section 205(j)(4) of such Act (42 U.S.C. 405(j)(4)) is
amended by striking subparagraph (D).
(C) Definition.--Section 205(j) of such Act (42 U.S.C.
405(j)) is amended by adding at the end the following new
paragraph:
``(7) For purposes of this subsection, the term `benefit
based on disability' of an individual means a disability
insurance benefit of such individual under section 223 or a
child's, widow's, or widower's insurance benefit of such
individual under section 202 based on such individual's
disability.''.
(D) Effective date.--Except as provided in subparagraph
(B)(iii), the amendments made by this paragraph shall apply
with respect to months beginning after 90 days after the date
of the enactment of this Act.
(3) Nonpayment or termination of benefits.--
(A) In general.--Section 225 of such Act (42 U.S.C. 425) is
amended--
(i) by striking the heading and inserting the following:
``additional rules relating to benefits based on disability
``Suspension of Benefits'';
(ii) by inserting before subsection (b) the following new
heading:
``Continued Payments During Rehabilitation Program'';
and
(iii) by adding at the end the following new subsection:
``Nonpayment or Termination of Benefits Where Entitlement Involves
Alcoholism or Drug Addiction
``(c)(1)(A) In the case of any individual entitled to
benefits based on disability, if alcoholism or drug addiction
is a contributing factor material to the Secretary's
determination that such individual is under a disability,
such individual shall comply with the provisions of this
subsection. In any case in which an individual is required to
comply with the provisions of this subsection, the Secretary
shall include, in such individual's notification of
entitlement, a notice informing such individual of such
requirement.
``(B) Notwithstanding any other provision of this title, if
an individual who is required under subparagraph (A) to
comply with the provisions of this subsection is determined
by the Secretary not to be in compliance with the provisions
of this subsection, such individual's benefits based on
disability shall be suspended for a period--
``(i) commencing with the first month following the month
in which such individual is notified by the Secretary of the
determination of noncompliance and that the individual's
benefits will be suspended, and
``(ii) ending with the month preceding the first month,
after the determination of noncompliance, in which such
individual demonstrates that he or she has reestablished and
maintained compliance with such provisions for the applicable
period specified in paragraph (3).
``(2)(A) An individual described in paragraph (1) is in
compliance with the requirements of this subsection for a
month if in such month--
``(i) such individual undergoes substance abuse treatment
which is appropriate for such individual's condition
diagnosed as alcoholism or drug addiction and for the stage
of such individual's rehabilitation and which is conducted at
an institution or facility approved for purposes of this
subsection by the Secretary, and
``(ii) such individual complies in such month with the
terms, conditions, and requirements of such treatment and
with requirements imposed by the Secretary under paragraph
(5).
``(B) An individual described in paragraph (1) may be
determined as failing to comply with the requirements of this
subsection for a month only if treatment meeting the
requirements of subparagraph (A)(i) is available for that
month, as determined pursuant to regulations of the
Secretary.
``(3) The applicable period specified in this paragraph
is--
``(A) 2 consecutive months, in the case of a first
determination that an individual is not in compliance with
the requirements of this subsection,
``(B) 3 consecutive months, in the case of the second such
determination with respect to the individual, or
``(C) 6 consecutive months, in the case of the third or
subsequent such determination with respect to the individual.
``(4) In any case in which an individual's benefit is
suspended for a period of 12 consecutive months for failure
to comply with treatment described in paragraph (2) of this
subsection, the month following such period shall be deemed,
for purposes of section 223(a)(1) or subsection (d)(1)(G)(i),
(e)(1), or (f)(1) of section 202 (as applicable), the
termination month with respect to such entitlement.
``(5)(A) The Secretary shall provide for the monitoring and
testing of individuals who are receiving benefits under this
title and who as a condition of payment of such benefits are
required to be undergoing treatment under paragraph (1) and
complying with the terms, conditions, and requirements
thereof as described in paragraph (2)(A), in order to assure
such compliance.
``(B) The Secretary, in consultation with drug and alcohol
treatment professionals, shall issue regulations--
``(i) defining appropriate treatment for alcoholics and
drug addicts who are subject to appropriate substance abuse
treatment required under this subsection, and
``(ii) establishing guidelines to be used to review and
evaluate their compliance, including measures of the progress
expected to be achieved by participants in such programs.
``(C)(i) For purposes of carrying out the requirements of
subparagraphs (A) and (B), the Secretary shall provide for
the establishment of one or more referral and monitoring
agencies for each State.
``(ii) Each referral and monitoring agency for a State
shall--
``(I) identify appropriate placements, for individuals
residing in such State who are entitled to benefits based on
disability and with respect to whom alcoholism or drug
addiction is a contributing factor material to the
Secretary's determination that they are under a disability,
where they may obtain treatment described in paragraph
(2)(A),
``(II) refer such individuals to such placements for such
treatment, and
``(III) monitor compliance with the requirements of
paragraph (2)(A) by individuals who are referred by the
agency to such placements and promptly report failures to
comply to the Secretary.
``(D) There are authorized to be transferred from the
Federal Old-Age and Survivors Insurance Trust Fund and the
Federal Disability Insurance Trust Fund such sums as are
necessary to carry out the requirements of this paragraph for
referral, monitoring, and testing.
``(6)(A) In the case of any individual who is entitled to a
benefit based on disability for any month, if alcoholism or
drug addiction is a contributing factor material to the
Secretary's determination that the individual is under a
disability, payment of any past-due monthly insurance
benefits under this title to which such individual is
entitled shall be made in any month only to the extent that
the sum of--
``(i) the amount of such past-due benefit paid in such
month, and
``(ii) the amount of any benefit for the preceding month
under such current entitlement which is payable in such
month,
does not exceed, subject to subparagraph (B), twice the
amount of such individual's benefit for the preceding month
(determined without applying any reductions or deductions
under this title).
``(B)(i) In the case of an individual who is no longer
currently entitled to monthly insurance benefits under this
title but to whom any amount of past-due benefits has not
been paid, for purposes of subparagraph (A), such
individual's monthly insurance benefit for such individual's
last month of entitlement shall be treated as such
individual's benefit for the preceding month.
``(ii) For the first month in which an individual's past-
due benefits referred to in subparagraph (A) are paid, the
amount of the limitation provided in subparagraph (A) shall
be increased by the amount of any debts of such individual
related to housing which are outstanding as of the end of the
preceding month and which are resulting in a high risk of
homelessness for such individual.
``(C) Upon the death of an individual to whom payment of
past-due benefits has been limited under subparagraph (A),
any amount of such past-due benefits remaining unpaid shall
be treated as an underpayment for purposes of section 204.
``(D) In the case of an individual who would be entitled to
benefits based on disability but for termination of such
benefits under paragraph (4) or (7), such individual shall be
entitled to payment of past-due benefits under this paragraph
as if such individual continued to be entitled to such
terminated benefits.
``(7)(A) Subject to subparagraph (B), in the case of any
individual entitled to benefits based on disability, if--
``(i) alcoholism or drug addiction is a contributing factor
material to the Secretary's determination that such
individual is under a disability, and
``(ii) as of the end of the 36-month period beginning with
such individual's first month of entitlement, such individual
would not otherwise be disabled but for alcoholism or drug
addiction,
the month following such 36-month period shall be deemed, for
purposes of section 223(a)(1) or subsection (d)(1)(G)(i),
(e)(1), or (f)(1) of section 202 (as applicable), the
termination month with respect to such entitlement. Such
individual whose entitlement is terminated under this
paragraph may not be entitled to benefits based on disability
for any month following such 36-month period if, in such
following month, alcoholism or drug addiction is a
contributing factor material to the Secretary's determination
that such individual is under a disability.
``(B) In determining whether the 36-month period referred
to in subparagraph (A) has elapsed--
``(i) a month shall not be taken into account unless the
Secretary determines, under regulations of the Secretary,
that treatment required under this subsection is available to
the individual for the month, and
``(ii) any month for which a suspension is in effect for
the individual under paragraph (1)(B) shall not be taken into
account.
``(8) Monthly insurance benefits under this title which
would be payable to any individual (other than the disabled
individual to whom benefits are not payable by reason of this
subsection) on the basis of the wages and self-employment
income of such disabled individual but for the provisions of
paragraph (1), (4), or (7) shall be payable as though such
paragraph did not apply.
``(9) For purposes of this subsection, the term `benefit
based on disability' of an individual means a disability
insurance benefit of such individual under section 223 or a
child's, widow's, or widower's insurance benefit of such
individual under section 202 based on the disability of such
individual.''.
(B) Report.--Not later than December 31, 1996, the
Secretary shall submit to the Committee on Ways and Means of
the House of Representatives and the Committee on Finance of
the Senate a full and complete report on the Secretary's
activities under paragraph (5) of section 225(c) of the
Social Security Act (as amended by subparagraph (A)). Such
report shall include the number and percentage of individuals
referred to in such paragraph who have not received regular
drug testing since the effective date of such paragraph.
(C) Sunset of 36-month rule.--Section 225(c)(7) of the
Social Security Act (added by subparagraph (A)) shall cease
to be effective with respect to benefits for months after
September 2004.
(D) Preservation of medicare benefits.--
(i) Section 226 of such Act (42 U.S.C. 426) is amended by
adding at the end the following:
``(i) For purposes of this section, each person whose
monthly insurance benefit for any month is terminated or is
otherwise not payable solely by reason of paragraph (1) or
(7) of section 225(c) shall be treated as entitled to such
benefit for such month.''.
(ii) Section 226A of such Act (42 U.S.C. 426A) is amended
by adding at the end the following:
``(c) For purposes of this section, each person whose
monthly insurance benefit for any month is terminated or is
otherwise not payable solely by reason of paragraph (1) or
(7) of section 225(c) shall be treated as entitled to such
benefit for such month.''.
(E) Effective date.--
(i) In general.--Except as otherwise provided in this
paragraph, the amendments made by this paragraph shall apply
with respect to benefits based on disability (as defined in
section 225(c)(9) of the Social Security Act, added by this
section) which are otherwise payable in months beginning
after 180 days after the date of the enactment of this Act.
The Secretary of Health and Human Services shall issue
regulations necessary to carry out the amendments made by
this paragraph not later than 180 days after the date of the
enactment of this Act.
(ii) Referral and monitoring agencies.--Section 225(c)(5)
of the Social Security Act (added by this subsection) shall
take effect 180 days after the date of the enactment of this
Act.
(iii) Termination after 36 months.--Section 225(c)(7) of
the Social Security Act (added by this subsection) shall
apply with respect to benefits based on disability (as so
defined) for months beginning after 180 days after the date
of the enactment of this Act.
(F) Transition rules for current beneficiaries.--In any
case in which an individual is entitled to benefits based on
disability, the determination of disability was made by the
Secretary of Health and Human Services during or before the
180-day period following the date of the enactment of this
Act, and alcoholism or drug addiction is a contributing
factor material to the Secretary's determination that the
individual is under a disability--
(i) Treatment requirement.--Paragraphs (1) through (4) of
section 225(c) of the Social Security Act (added by this
subsection) shall apply only with respect to benefits paid in
months after the month in which such individual is notified
by the Secretary in writing that alcoholism or drug addiction
is a contributing factor material to the Secretary's
determination and that such individual is therefore required
to comply with the provisions of section 225(c) of such Act.
(ii) Termination after 36 months.--
(I) In general.--For purposes of section 225(c)(7) of the
Social Security Act (added by this subsection), the first
month of entitlement beginning after 180 days after the date
of the enactment of this Act shall be treated as the
individual's first month of entitlement to such benefits.
(II) Concurrent beneficiaries currently under treatment.--
In any case in which the individual is also entitled to
benefits under title XVI and, as of 180 days after the date
of the enactment of this Act, such individual is undergoing
treatment required under section 1611(e)(3) of the Social
Security Act (as in effect immediately before the date of the
enactment of this Act), the Secretary of Health and Human
Services shall notify such individual of the provisions of
section 225(c)(7) of the Social Security Act (added by this
subsection) not later than 180 days after the date of the
enactment of this Act.
(III) Concurrent beneficiaries not currently under
treatment.--In any case in which the individual is also
entitled to benefits under title XVI but, as of 180 days
after the date of the enactment of this Act, such individual
is not undergoing treatment described in subclause (II),
section 225(c)(7) (added by this subsection) shall apply only
with respect to benefits for months after the month in which
treatment required under section 1611(e)(3) of the Social
Security Act (as amended by subsection (b)) is available, as
determined under regulations of the Secretary of Health and
Human Services, and the Secretary notifies such individual of
the availability of such treatment and describes in such
notification the provisions of section 225(c)(7) of the
Social Security Act (added by this subsection).
(4) Irrelevance of legality of services performed in
determining substantial gainful activity.--
(A) In general.--Section 223(d)(4) of such Act (42 U.S.C.
423(d)(4)) is amended--
(i) by inserting ``(A)'' after ``(4)''; and
(ii) by adding at the end the following new subparagraph:
``(B) In determining under subparagraph (A) when services
performed or earnings derived from services demonstrate an
individual's ability to engage in substantial gainful
activity, the Secretary shall apply the criteria described in
subparagraph (A) with respect to services performed by any
individual without regard to the legality of such
services.''.
(B) Conforming amendment relating to trial work.--Section
222(c)(2) of such Act (42 U.S.C. 422(c)(2)) is amended by
inserting ``(whether legal or illegal)'' after ``activity''.
(C) Effective date.--The amendments made by this paragraph
shall take effect on the date of the enactment of this Act.
(b) Amendments Relating to Supplemental Security Income
Benefits Under Title XVI of the Social Security Act.--
(1) Required payment of benefits to representative
payees.--
(A) In general.--Section 1631(a)(2)(A) of the Social
Security Act (42 U.S.C. 1383(a)(2)(A)) is amended--
(i) in clause (ii)--
(I) by inserting ``(I)'' after ``(ii)'';
(II) by striking ``or in the case of any individual or
eligible spouse referred to in section 1611(e)(3)(A),''; and
(III) by adding after and below the end the following:
``(II) In the case of an individual eligible for benefits
under this title by reason of disability, if alcoholism or
drug addiction is a contributing factor material to the
Secretary's determination that the individual is disabled,
the payment of such benefits to a representative payee shall
be deemed to serve the interest of the individual under this
title. In any case in which such payment is so deemed under
this subclause to serve the interest of an individual, the
Secretary shall include, in the individual's notification of
such eligibility, a notice that alcoholism or drug addiction
is a contributing factor material to the Secretary's
determination that the individual is disabled and that the
Secretary is therefore required to pay the individual's
benefits to a representative payee.''; and
(ii) in clause (iii), by striking ``to the individual or
eligible spouse or to an alternative representative payee of
the individual or eligible spouse'' and inserting ``to an
alternative representative payee of the individual or
eligible spouse or, if the interest of the individual under
this title would be served thereby, to the individual or
eligible spouse''.
(B) Conforming amendment.--Section 1631(a)(2)(B)(viii)(II)
of such Act (42 U.S.C. 1383(a)(2)(B)(viii)(II)) is amended by
striking ``15 years'' and all that follows and inserting ``of
15 years, or (if alcoholism or drug addiction is a
contributing factor material to the Secretary's determination
that the individual is disabled) is eligible for benefits
under this title by reason of disability.''.
(C) Effective date.--The amendments made by this paragraph
shall apply with respect to months beginning after 180 days
after the date of the enactment of this Act.
(2) Increased reliance on professional representative
payees.--
(A) Preference required for organizational representative
payees.--Section 1631(a)(2)(B) of such Act (42 U.S.C.
1383(a)(2)(B)), as amended by paragraph (1)(B) of this
subsection, is amended--
(i) by redesignating clauses (vii) through (xii) as clauses
(viii) through (xiii), respectively;
(ii) by inserting after clause (vi) the following:
``(vii) In the case of an individual eligible for benefits
under this title by reason of disability, if alcoholism or
drug addiction is a contributing factor material to the
Secretary's determination that the individual is disabled,
when selecting such individual's representative payee,
preference shall be given to--
``(I) a community-based nonprofit social service agency
licensed or bonded by the State;
``(II) a Federal, State, or local government agency whose
mission is to carry out income maintenance, social service,
or health care-related activities;
``(III) a State or local government agency with fiduciary
responsibilities; or
``(IV) a designee of an agency (other than of a Federal
agency) referred to in the preceding subclauses of this
clause, if the Secretary deems it appropriate,
unless the Secretary determines that selection of a family
member would be appropriate.'';
(iii) in clause (viii) (as so redesignated), by striking
``clause (viii)'' and inserting ``clause (ix)'';
(iv) in clause (ix) (as so redesignated), by striking
``(vii)'' and inserting ``(viii)'';
(v) in clause (xiii) (as so redesignated)--
(I) by striking ``(xi)'' and inserting ``(xii)''; and
(II) by striking ``(x)'' and inserting ``(xi)''.
(B) Availability of public agencies and other qualified
organizations to serve as representative payees.--
(i) Allowable fees.--Section 1631(a)(2)(D) of such Act (42
U.S.C. 1383(a)(2)(D)) is amended--
(I) in clause (i)--
(aa) by striking subclause (II) and inserting the
following:
``(II) $25.00 per month ($50.00 per month in any case in
which an individual is eligible for benefits under this title
by reason of disability and alcoholism or drug addiction is a
contributing factor material to the Secretary's determination
that the individual is disabled).''; and
(bb) by inserting after the 1st sentence the following:
``The Secretary shall adjust annually (after 1995) each
dollar amount set forth in subclause (II) of this clause
under procedures providing for adjustments in the same manner
and to the same extent as adjustments are provided for under
the procedures used to adjust benefit amounts under section
215(i)(2)(A), except that any amount so adjusted that is not
a multiple of $1.00 shall be rounded to the nearest multiple
of $1.00.''; and
(II) by adding at the end the following:
``(v) In the case of an individual who is no longer
eligible for benefits under this title but to whom any amount
of past-due benefits under this title has not been paid, for
purposes of clause (i), any amount of such past-due benefits
payable in any month shall be treated as a monthly benefit
referred to in clause (i)(I).''.
(ii) Inclusion of state and local agencies as qualified
organizations.--Section 1631(a)(2)(D)(ii) of such Act (42
U.S.C. 1383(a)(2)(D)(ii)) is amended--
(I) by inserting ``State or local government agency whose
mission is to carry out income maintenance, social service,
or health care-related activities, any State or local
government agency with fiduciary responsibilities, or any''
after ``means any'';
(II) by inserting a comma after ``service agency'';
(III) by adding ``and'' at the end of subclause (I); and
(IV) in subclause (II)--
(aa) by adding ``and'' at the end of item (aa);
(bb) by striking ``; and'' at the end of item (bb) and
inserting a period; and
(cc) by striking item (cc).
(iii) Retroactive repeal of sunset.--
(I) Repeal.--Effective July 1, 1994, section 1631(a)(2)(D)
of such Act (42 U.S.C. 1383(a)(2)(D)) is amended by striking
clause (iv).
(II) Conforming amendment.--Section 1631(a)(2)(D) of such
Act (42 U.S.C. 1383(a)(2)(D)) is amended by redesignating
clause (v) (as added by clause (i)(II) of this subparagraph)
as clause (iv).
(C) Effective date.--Except as provided in subparagraph
(B)(iii)(I), the amendments made by this paragraph shall
apply with respect to months beginning after 90 days after
the date of the enactment of this Act.
(3) Nonpayment or termination of benefits.--
(A) In general.--Section 1611(e)(3)(A) of such Act (42
U.S.C. 1382(e)(3)(A)) is amended to read as follows:
``(A)(i)(I) In the case of any individual eligible for
benefits under this title solely by reason of disability, if
alcoholism or drug addiction is a contributing factor
material to the Secretary's determination that the individual
is disabled, the individual shall comply with the provisions
of this subparagraph. In any case in which an individual is
required to comply with the provisions of this subparagraph,
the Secretary shall include in the individual's notification
of such eligibility a notice informing the individual of such
requirement.
``(II) Notwithstanding any other provision of this title,
if an individual who is required under subclause (I) to
comply with the requirements of this subparagraph is
determined by the Secretary not to be in compliance with the
provisions of this subparagraph, the individual's benefits
under this title by reason of disability shall be suspended
for a period--
``(aa) commencing with the first month following the month
in which the individual is notified by the Secretary of the
determination of noncompliance and that the individual's
benefits will be suspended; and
``(bb) ending with the month preceding the first month,
after the determination of noncompliance, in which the
individual demonstrates that he or she has reestablished and
maintained compliance with such provisions for the applicable
period specified in clause (iii).
``(ii)(I) An individual described in clause (i) is in
compliance with the requirements of this subparagraph for a
month if in such month--
``(aa) the individual undergoes substance abuse treatment,
which is appropriate for the individual's condition diagnosed
as alcoholism or drug addiction and for the stage of the
individual's rehabilitation and which is conducted at an
institution or facility approved for purposes of this
subparagraph by the Secretary; and
``(bb) the individual complies in such month with the
terms, conditions, and requirements of the treatment and with
requirements imposed by the Secretary under this paragraph.
``(II) An individual described in clause (i) may be
determined as failing to comply with the requirements of this
subparagraph for a month only if treatment meeting the
requirements of subclause (I)(aa) is available for the month,
as determined pursuant to regulations of the Secretary.
``(iii) The applicable period specified in this clause is--
``(I) 2 consecutive months, in the case of a 1st
determination that an individual is not in compliance with
the requirements of this subparagraph;
``(II) 3 consecutive months, in the case of the 2nd such
determination with respect to the individual; or
``(III) 6 consecutive months, in the case of the 3rd or
subsequent such determination with respect to the individual.
``(iv) An individual who is not in compliance with this
paragraph for 12 consecutive months shall not be eligible for
supplemental security income benefits under this title. The
preceding sentence shall not be construed to prevent the
individual from reapplying and becoming eligible for such
benefits.
``(v)(I) In the case of any individual eligible for
benefits under this title by reason of disability, if--
``(aa) alcoholism or drug addiction is a contributing
factor material to the Secretary's determination that the
individual is disabled; and
``(bb) as of the end of the 36-month period beginning with
the 1st month for which such benefits by reason of disability
are payable to the individual, the individual would not
otherwise be disabled but for alcoholism or drug addiction,
the individual shall not be eligible for such benefits by
reason of disability for any month following such 36-month
period if, in such following month, alcoholism or drug
addiction would be a contributing factor material to the
Secretary's determination that the individual is disabled,
notwithstanding section 1619(a).
``(II) An individual whose entitlement to benefits under
title II based on disability has been terminated by reason of
section 225(c)(7) shall not be eligible for benefits under
this title by reason of disability, if alcoholism or drug
addiction is a contributing factor material to the
Secretary's determination that the individual is disabled,
for any month after the individual's termination month
(within the meaning of section 223(a)(1) or subsection
(d)(1)(G)(i), (e)(1), or (f)(1) of section 202, as
applicable) with respect to such benefits.
``(III) Any month for which a suspension is in effect for
the individual under clause (i)(II) shall not be taken into
account in determining whether any 36-month period referred
to in this clause has elapsed.
``(vi)(I) In the case of any individual who is eligible for
benefits under this title for any month solely by reason of
disability, if alcoholism or drug addiction is a contributing
factor material to the Secretary's determination that the
individual is disabled, payment of any benefits under this
title the payment of which is past due shall be made in any
month only to the extent that the sum of--
``(aa) the amount of the past-due benefit paid in the
month; and
``(bb) the amount of any benefit under this title which is
payable to the individual for the month,
does not exceed twice the maximum benefit payable under this
title to an eligible individual for the preceding month.
``(II) For the first month in which an individual's past-
due benefits referred to in subclause (I) are paid, the
amount of the limitation provided in subclause (I) shall be
increased by the amount of any debts of the individual
related to housing which are outstanding as of the end of the
preceding month and which are resulting in a high risk of
homelessness for the individual.
``(III) Upon the death of an individual to whom payment of
past-due benefits has been limited under subclause (I), any
amount of such past-due benefits remaining unpaid shall be
treated as an underpayment for purposes of section
1631(b)(1)(A).
``(IV) As used in this clause, the term `benefits under
this title' includes supplementary payments pursuant to an
agreement for Federal administration under section 1616(a),
and payments pursuant to an agreement entered into under
section 212(b) of Public Law 93-66.
``(V) In the case of an individual who would be eligible
for benefits under this title by reason of disability but for
termination of such benefits under clause (iv) or (v), the
individual shall be eligible for payment of past-due benefits
under this clause as if the individual continued to be
eligible for such terminated benefits.
``(VI) Subclause (I) shall not apply to payments under
section 1631(g).''.
(B) Referral, monitoring, and treatment.--
(i) In general.--Section 1611(e)(3)(B) of such Act (42
U.S.C. 1382(e)(3)(B)) is amended--
(I) by inserting ``(i)'' after ``(B)'';
(II) by striking the 2nd sentence; and
(III) by adding after and below the end following:
``(ii) The Secretary, in consultation with drug and alcohol
treatment professionals, shall issue regulations--
``(I) defining appropriate treatment for alcoholics and
drug addicts who are subject to required appropriate
substance abuse treatment under this subparagraph; and
``(II) establishing guidelines to be used to review and
evaluate their compliance, including measures of the progress
expected to be achieved by participants in such programs.
``(iii)(I) For purposes of carrying out the requirements of
clauses (i) and (ii), the Secretary shall provide for the
establishment of 1 or more referral and monitoring agencies
for each State.
``(II) Each referral and monitoring agency for a State
shall--
``(aa) identify appropriate placements, for individuals
residing in the State who are eligible for benefits under
this title by reason of disability and with respect to whom
alcoholism or drug addiction is a contributing factor
material to the Secretary's determination that they are
disabled, where they may obtain treatment described in
subparagraph (A)(ii)(I);
``(bb) refer such individuals to such placements for such
treatment; and
``(cc) monitor compliance with the requirements of
subparagraph (A) by individuals who are referred by the
agency to such placements, and promptly report to the
Secretary any failure to comply with such requirements.''.
(ii) Report.--Not later than December 31, 1996, the
Secretary shall submit to the Committee on Ways and Means of
the House of Representatives and the Committee on Finance of
the Senate a full and complete report on the Secretary's
activities under section 1611(e)(3)(B) of the Social Security
Act. The report shall include the number and percentage of
individuals referred to in such paragraph who have not
received regular drug testing since the effective date of the
amendments made by clause (i) of this subparagraph.
(C) Sunset of 36-month rule.--Section 1611(e)(3)(A)(v) of
the Social Security Act (added by subparagraph (A) of this
paragraph) shall cease to be effective with respect to
benefits for months after September 2004.
(D) Preservation of medicaid benefits.--Section 1634 of
such Act (42 U.S.C. 13283c) is amended by adding at the end
the following:
``(e) Each person to whom benefits under this title by
reason of disability are not payable for any month solely by
reason of clause (i) or (v) of section 1611(e)(3)(A) shall be
treated, for purposes of title XIX, as receiving benefits
under this title for the month.''.
(E) Effective date.--
(i) In general.--Except as otherwise provided in this
paragraph, the amendments made by this paragraph shall apply
with respect to supplemental security income benefits under
title XVI of the Social Security Act by reason of disability
which are otherwise payable in months beginning after 180
days after the date of the enactment of this Act. The
Secretary of Health and Human Services shall issue
regulations necessary to carry out the amendments made by
this paragraph not later than 180 days after such date of
enactment.
(ii) Referral and monitoring agencies.--The amendments made
by subparagraph (B) shall take effect 180 days after the date
of the enactment of this Act.
(iii) Termination after 36 months.--Clause (v) of section
1611(e)(3)(A) of the Social Security Act (added by the
amendment made by subparagraph (A) of this paragraph) shall
apply with respect to supplemental security income benefits
under title XVI of the Social Security Act by reason of
disability for months beginning after 180 days after the date
of the enactment of this Act.
(F) Transition rules for current beneficiaries.--In any
case in which an individual is eligible for supplemental
security income benefits under title XVI of the Social
Security Act by reason of disability, the determination of
disability was made by the Secretary of Health and Human
Services during or before the 180-day period following the
date of the enactment of this Act, and alcoholism or drug
addiction is a contributing factor material to the
Secretary's determination that the individual is disabled,
for purposes of section 1611(e)(3)(A)(v) of the Social
Security Act (added by the amendment made by subparagraph (A)
of this paragraph)--
(i) the first month of such eligibility beginning after 180
days after the date of the enactment of this Act shall be
treated as the individual's first month of such eligibility;
and
(ii) the Secretary shall notify the individual of the
requirements of the amendments made by this paragraph no
later than 180 days after the date of the enactment of this
Act.
(4) Irrelevance of legality of substantial gainful
activity.--
(A) In general.--Section 1614(a)(3)(D) of such Act (42
U.S.C. 1382c(a)(3)(D)) is amended by adding at the end the
following: ``The Secretary shall make determinations under
this title with respect to substantial gainful activity,
without regard to the legality of the activity.''.
(B) Effective date.--The amendment made by subparagraph (A)
shall take effect on the date of the enactment of this Act.
(c) Demonstration Projects.--
(1) In general.--The Secretary of Health and Human Services
shall develop and carry out demonstration projects designed
to explore innovative referral, monitoring, and treatment
approaches with respect to--
(A) individuals who are entitled to disability insurance
benefits or child's, widow's, or widower's insurance benefits
based on disability under title II of the Social Security
Act, and
(B) individuals who are eligible for supplemental security
income benefits under title XVI of such Act based solely on
disability,
in cases in which alcoholism or drug addiction is a
contributing factor material to the Secretary's determination
that individuals are under a disability. The Secretary may
include in such demonstration projects individuals who are
not described in either subparagraph (A) or subparagraph (B)
if the inclusion of such individuals is necessary to
determine the efficacy of various monitoring, referral, and
treatment approaches for individuals described in
subparagraph (A) or (B).
(2) Scope.--The demonstration projects developed under
paragraph (1) shall be of sufficient scope and shall be
carried out on a wide enough scale to permit a thorough
evaluation of the alternative approaches under consideration
while giving assurance that the results derived from the
projects will obtain generally in the operation of the
programs involved without committing such programs to the
adoption of any particular system either locally or
nationally.
(3) Final report.--The Secretary shall submit to the
Committee on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate no later than
December 31, 1997, a final report on the demonstration
projects carried out under this subsection, together with any
related data and materials which the Secretary may consider
appropriate. The authority under this section shall terminate
upon the transmittal of such final report.
SEC. 202. COMMISSION ON CHILDHOOD DISABILITY.
(a) Establishment of Commission.--The Secretary of Health
and Human Services (in this section referred to as the
``Secretary'') shall appoint a Commission on the Evaluation
of Disability in Children (in this section referred to as the
``Commission'').
(b) Appointment of Members.--(1) The Secretary shall
appoint not less than 9 but not more than 15 members to the
Commission, including--
(A) recognized experts in the field of medicine, whose work
involves--
(i) the evaluation and treatment of disability in children;
(ii) the study of congenital, genetic, or perinatal
disorders in children; or
(iii) the measurement of developmental milestones and
developmental deficits in children; and
(B) recognized experts in the fields of--
(i) psychology;
(ii) education and rehabilitation;
(iii) law;
(iv) the administration of disability programs; and
(v) social insurance (including health insurance); and
(C) other fields of expertise that the Secretary determines
to be appropriate.
(2) Members shall be appointed by January 1, 1995, without
regard to the provisions of title 5, United States Code,
governing appointments to competitive service.
(3) Members appointed under this subsection shall serve for
a term equivalent to the duration of the Commission.
(4) The Secretary shall designate a member of the
Commission to serve as Chair of the Commission for a term
equivalent to the duration of the Commission.
(c) Administrative Provisions.--(1) Service as a member of
the Commission by an individual who is not otherwise a
Federal employee shall not be considered service in an
appointive or elective position in the Federal Government for
the purposes of title 5, United States Code.
(2) Each member of the Commission who is not a full-time
Federal employee shall be paid compensation at a rate equal
to the daily equivalent of the rate of basic pay in effect
for Level IV of the Executive Schedule for each day
(including travel time) the member attends meetings or
otherwise performs the duties of the Commission.
(3) While away from their homes or regular places of
business on the business of the Commission, each member who
is not a full-time Federal employee 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 employed intermittently in the Government
service.
(d) Assistance to Commission.--The Commission may engage
individuals skilled in medical and other aspects of childhood
disability to provide such technical assistance as may be
necessary to carry out the functions of the Commission. The
Secretary shall make available to the Commission such
secretarial, clerical, and other assistance as the Commission
may require to carry out the functions of the Commission.
(e) Study by the Commission.--(1) The Commission shall
conduct a study, in consultation with the National Academy of
Sciences, of the effects of the definition of ``disability''
under title XVI of the Social Security Act (42 U.S.C. 1382 et
seq.) in effect on the date of enactment of this Act, as such
definition applies to determining whether a child under the
age of 18 is eligible to receive benefits under such title,
the appropriateness of such definition, and the advantages
and disadvantages of using any alternative definition of
disability in determining whether a child under age 18 is
eligible to receive benefits under such title.
(2) The study described in paragraph (1) shall include
issues of--
(A) whether the need by families for assistance in meeting
high costs of medical care for children with serious physical
or mental impairments, whether or not they are eligible for
disability benefits under title XVI of the Social Security
Act, might appropriately be met through expansion of Federal
health assistance programs;
(B) the feasibility of providing benefits to children
through noncash means, including but not limited to vouchers,
debit cards, and electronic benefit transfer systems;
(C) the extent to which the Social Security Administration
can involve private organizations in an effort to increase
the provision of social services, education, and vocational
instruction with the aim of promoting independence and the
ability to engage in substantial gainful activity;
(D) alternative ways and providing retroactive supplemental
security income benefits to disabled children, including the
desirability and feasibility of conserving some portion of
such benefits to promote the long-term well-being of such
children;
(E) the desirability and methods of increasing the extent
to which benefits are used in the effort to assist disabled
children in achieving independence and engaging in
substantial gainful activity;
(F) the effects of the supplemental security income program
on disabled children and their families; and
(G) such other issues that the Secretary determines to be
appropriate.
(f) Report.--Not later than November 30, 1995, the
Commission shall prepare a report and submit such report to
the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate
which shall summarize the results of the study described in
subsection (e) and include any recommendations that the
Commission determines to be appropriate.
SEC. 203. REGULATIONS REGARDING COMPLETION OF PLANS FOR
ACHIEVING SELF-SUPPORT.
(a) In General.--Section 1633 of the Social Security Act
(42 U.S.C. 1383b) is amended by adding at the end the
following:
``(d) The Secretary shall establish by regulation criteria
for time limits and other criteria related to individuals'
plans for achieving self-support, that take into account--
``(1) the length of time that the individual will need to
achieve the individual's employment goal (within such
reasonable period as the Secretary may establish); and
``(2) other factors determined by the Secretary to be
appropriate.''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect on January 1, 1995.
SEC. 204. SSI ELIGIBILITY FOR STUDENTS TEMPORARILY ABROAD.
(a) In General.--Section 1611(f) of the Social Security Act
(42 U.S.C. 1382(f)) is amended--
(1) by inserting ``(1)'' after ``(f)''; and
(2) by adding after and below the end the following:
``(2) For a period of not more than 1 year, the first
sentence of paragraph (1) shall not apply to any individual
who--
``(A) was eligible to receive a benefit under this title
for the month immediately preceding the first month during
all of which the individual was outside the United States;
and
``(B) demonstrates to the satisfaction of the Secretary
that the absence of the individual from the United States
will be--
``(i) for not more than 1 year; and
``(ii) for the purpose of conducting studies as part of an
educational program that is--
``(I) designed to substantially enhance the ability of the
individual to engage in gainful employment;
``(II) sponsored by a school, college, or university in the
United States; and
``(III) not available to the individual in the United
States.''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect on January 1, 1995.
SEC. 205. DISREGARD OF COST-OF-LIVING INCREASES FOR CONTINUED
ELIGIBILITY FOR WORK INCENTIVES.
(a) In General.--Section 1619(b)(1)(B) of the Social
Security Act (42 U.S.C. 1382h(b)(1)(B)) is amended by
inserting ``and increases pursuant to section 215(i) in the
level of monthly insurance benefits to which the individual
is entitled under title II that occur while such individual
is considered to be receiving supplemental security income
benefits by reason of this subsection'' after ``earnings''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply to eligibility determinations for months after
December 1994.
SEC. 206. EXPANSION OF THE AUTHORITY OF THE SOCIAL SECURITY
ADMINISTRATION TO PREVENT, DETECT, AND
TERMINATE FRAUDULENT CLAIMS FOR OASDI AND SSI
BENEFITS.
(a) Prevention of Fraud by Translators of Foreign
Languages.--
(1) OASDI programs.--Section 205(c) of the Social Security
Act (42 U.S.C. 405(c)) is amended--
(A) by redesignating paragraph (8) as paragraph (9); and
(B) by inserting after paragraph (7) the following:
``(8) A translation into English by a third party of a
statement made in a foreign language by an applicant for or
beneficiary of monthly insurance benefits under this title
shall not be regarded as reliable for any purpose under this
title unless the third party, under penalty of perjury--
``(A) certifies that the translation is accurate; and
``(B) discloses the nature and scope of the relationship
between the third party and the applicant or recipient, as
the case may be.''.
(2) SSI program.--Section 1631(e) of such Act (42 U.S.C.
1383(e)) is amended by inserting after paragraph (3) the
following:
``(4) A translation into English by a third party of a
statement made in a foreign language by an applicant for or
recipient of benefits under this title shall not be regarded
as reliable for any purpose under this title unless the third
party, under penalty of perjury--
``(A) certifies that the translation is accurate; and
``(B) discloses the nature and scope of the relationship
between the third party and the applicant or recipient, as
the case may be.''.
(3) Effective date.--The amendments made by this subsection
shall apply to translations made on or after October 1, 1994.
(b) Civil Monetary Penalties, Assessments, and Exclusions
for Titles II and XVI.--
(1) In general.--Title XI of the Social Security Act (42
U.S.C. 1301 et seq.) is amended by inserting after section
1128B the following:
``SEC. 1129. CIVIL MONETARY PENALTIES AND ASSESSMENTS FOR
TITLES II AND XVI.
``(a)(1) Any person (including an organization, agency, or
other entity) who 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--
``(A) monthly insurance benefits under title II, or
``(B) benefits or payments under title XVI,
that the person knows or should know is false or misleading
or knows or should know omits a material fact or makes such a
statement with knowing disregard for the truth 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 statement or representation. Such person
also shall be subject to an assessment, in lieu of damages
sustained by the United States because of such statement or
representation, of not more than twice the amount of benefits
or payments paid as a result of such a statement or
representation. In addition, the Secretary may make a
determination in the same proceeding to exclude, as provided
in section 1128, such a person who is a medical provider or
physician from participation in the programs under title
XVIII and to direct the appropriate State agency to exclude
the person from participation in any State health care
program permanently or for such period as the Secretary
determines.
``(2) For purposes of this section, a material fact is one
which the Secretary may consider in evaluating whether an
applicant is entitled to benefits under title II or eligible
for benefits or payments under title XVI.
``(b)(1) The Secretary may initiate a proceeding to
determine whether to impose a civil money penalty or
assessment, or whether to recommend exclusion under
subsection (a) only as authorized by the Attorney General
pursuant to procedures agreed upon by the Secretary and the
Attorney General. The Secretary may not initiate an action
under this section with respect to any violation described in
subsection (a) later than 6 years after the date the
violation was committed. The Secretary may initiate an action
under this section by serving notice of the action in any
manner authorized by Rule 4 of the Federal Rules of Civil
Procedure.
``(2) The Secretary shall not make a determination adverse
to any person under this section until the person has been
given written notice and an opportunity for the determination
to be made on the record after a hearing at which the person
is entitled to be represented by counsel, to present
witnesses, and to cross-examine witnesses against the person.
``(3) In a proceeding under this section which--
``(A) is against a person who has been convicted (whether
upon a verdict after trial or upon a plea of guilty or nolo
contendere) of a Federal or State crime charging fraud or
false statements; and
``(B) involves the same transaction as in the criminal
action;
the person is estopped from denying the essential elements of
the criminal offense.
``(4) The official conducting a hearing under this section
may sanction a person, including any party or attorney, for
failing to comply with an order or procedure, for failing to
defend an action, or for such other misconduct as would
interfere with the speedy, orderly, or fair conduct of the
hearing. Such sanction shall reasonably relate to the
severity and nature of the failure or misconduct. Such
sanction may include--
``(A) in the case of refusal to provide or permit
discovery, drawing negative factual inference or treating
such refusal as an admission by deeming the matter, or
certain facts, to be established;
``(B) prohibiting a party from introducing certain evidence
or otherwise supporting a particular claim or defense;
``(C) striking pleadings, in whole or in part;
``(D) staying the proceedings;
``(E) dismissal of the action;
``(F) entering a default judgment;
``(G) ordering the party or attorney to pay attorneys' fees
and other costs caused by the failure or misconduct; and
``(H) refusing to consider any motion or other action which
is not filed in a timely manner.
``(c) In determining pursuant to subsection (a) the amount
or scope of any penalty or assessment, or whether to
recommend an exclusion, the Secretary shall take into
account--
``(1) the nature of the statements and representations
referred to in subsection (a) and the circumstances under
which they occurred;
``(2) the degree of culpability, history of prior offenses,
and financial condition of the person committing the offense;
and
``(3) such other matters as justice may require.
``(d)(1) Any person adversely affected by a determination
of the Secretary under this section may obtain a review of
such determination in the United States Court of Appeals for
the circuit in which the person resides, or in which the
statement or representation referred to in subsection (a) was
made, by filing in such court (within 60 days following the
date the person is notified of the Secretary's determination)
a written petition requesting that the determination be
modified or set aside. A copy of the petition shall be
forthwith transmitted by the clerk of the court to the
Secretary, and thereupon the Secretary shall file in the
court the record in the proceeding as provided in section
2112 of title 28, United States Code. Upon such filing, the
court shall have jurisdiction of the proceeding and of the
question determined therein, and shall have the power to make
and enter upon the pleadings, testimony, and proceedings set
forth in such record a decree affirming, modifying, remanding
for further consideration, or setting aside, in whole or in
part, the determination of the Secretary and enforcing the
same to the extent that such order is affirmed or modified.
No objection that has not been urged before the Secretary
shall be considered by the court, unless the failure or
neglect to urge such objection shall be excused because of
extraordinary circumstances.
``(2) The findings of the Secretary with respect to
questions of fact, if supported by substantial evidence on
the record considered as a whole, shall be conclusive in the
review described in paragraph (1). If any party shall apply
to the court for leave to adduce additional evidence and
shall show to the satisfaction of the court that such
additional evidence is material and that there were
reasonable grounds for the failure to adduce such evidence in
the hearing before the Secretary, the court may order such
additional evidence to be taken before the Secretary and to
be made a part of the record. The Secretary may modify such
findings as to the facts, or make new findings, by reason of
additional evidence so taken and filed, and the Secretary
shall file with the court such modified or new findings,
which findings with respect to questions of fact, if
supported by substantial evidence on the record considered as
a whole shall be conclusive, and the Secretary's
recommendations, if any, for the modification or setting
aside of the Secretary's original order.
``(3) Upon the filing of the record and the Secretary's
original or modified order with the court, the jurisdiction
of the court shall be exclusive and its judgment and decree
shall be final, except that the same shall be subject to
review by the Supreme Court of the United States, as provided
in section 1254 of title 28, United States Code.
``(e)(1) Civil money penalties and assessments imposed
under this section may be compromised by the Secretary and
may be recovered--
``(A) in a civil action in the name of the United States
brought in United States district court for the district
where the statement or representation referred to in
subsection (a) was made, or where the person resides, as
determined by the Secretary;
``(B) by means of reduction in tax refunds to which the
person is entitled, based on notice to the Secretary of the
Treasury as permitted under section 3720A of title 31, United
States Code;
``(C)(i) by decrease of any payment of monthly insurance
benefits under title II, notwithstanding section 207, or
``(ii) by decrease of any payment under title XVI for which
the person is eligible, notwithstanding section 207, as made
applicable to title XVI by reason of section 1631(d)(1);
``(D) by authorities provided under the Debt Collection Act
of 1982, as amended, to the extent applicable to debts
arising under the Social Security Act;
``(E) by deduction of the amount of such penalty or
assessment, when finally determined, or the amount agreed
upon in compromise, from any sum then or later owing by the
United States to the person against whom the penalty or
assessment has been assessed; or
``(F) by any combination of the foregoing.
``(2) Amounts recovered under this section shall be
recovered by the Secretary and shall be disposed of as
follows:
``(A) In the case of amounts recovered arising out of a
determination relating to title II, the amounts shall be
transferred to the Managing Trustee of the Federal Old-Age
and Survivors Insurance Trust Fund or the Federal Disability
Insurance Trust Fund, as determined appropriate by the
Secretary, and such amounts shall be deposited by the
Managing Trustee into such Trust Fund.
``(B) In the case of amounts recovered arising out of a
determination relating to title XVI, the amounts shall be be
deposited by the Secretary into the general fund of the
Treasury as miscellaneous receipts.
``(f) A determination pursuant to subsection (a) by the
Secretary to impose a penalty or assessment, or to recommend
an exclusion shall be final upon the expiration of the 60-day
period referred to in subsection (d). Matters that were
raised or that could have been raised in a hearing before the
Secretary or in an appeal pursuant to subsection (d) may not
be raised as a defense to a civil action by the United States
to collect a penalty or assessment imposed under this
section.
``(g) Whenever the Secretary's determination to impose a
penalty or assessment under this section with respect to a
medical provider or physician becomes final, the provisions
of section 1128A(h) shall apply.
``(h) Whenever the Secretary has reason to believe that any
person has engaged, is engaging, or is about to engage in any
activity which makes the person subject to a civil monetary
penalty under this section, the Secretary may bring an action
in an appropriate district court of the United States (or, if
applicable, a United States court of any territory) to enjoin
such activity, or to enjoin the person from concealing,
removing, encumbering, or disposing of assets which may be
required in order to pay a civil monetary penalty and
assessment if any such penalty were to be imposed or to seek
other appropriate relief.
``(i)(1) The provisions of subsections (d) and (e) of
section 205 shall apply with respect to this section to the
same extent as they are applicable with respect to title II.
The Secretary may delegate the authority granted by section
205(d) (as made applicable to this section) to the Inspector
General for purposes of any investigation under this section.
``(2) The Secretary may delegate authority granted under
this section to the Inspector General.
``(j) For purposes of this section, the term `State agency'
shall have the same meaning as in section 1128A(i)(1).
``(k) A principal is liable for penalties and assessments
under subsection (a), and for an exclusion under section
1128, for the actions of the principal's agent acting within
the scope of the agency.''.
(2) Conforming amendments.--Section 1128 of such Act (42
U.S.C. 1320a-7) is amended--
(A) in subsection (b)(7), by striking ``or section 1128B''
and inserting ``, 1128B, or 1129'';
(B) in subsection (b)(8)(B)(ii), by inserting ``or 1129''
after ``section 1128A''; and
(C) in subsection (f)(3), by inserting ``, 1129,'' after
``sections 1128A''.
(3) Effective date.--The amendments made by this subsection
shall apply to conduct occurring on or after October 1, 1994.
(c) SSI Fraud Considered a Felony.--
(1) In general.--Section 1632(a) of the Social Security Act
(42 U.S.C. 1383a(a)) is amended by striking ``shall'' the 1st
place such term appears and all that follows and inserting
``shall be fined under title 18, United States Code,
imprisoned not more than 5 years, or both.''.
(2) Conforming amendment.--Section 1632(b) of such Act (42
U.S.C. 1383a(b)) is amended to read as follows:
``(b)(1) If a person or entity violates subsection (a) in
the person's or entity's role as, or in applying to become, a
representative payee under section 1631(a)(2) on behalf of
another individual (other than the person's eligible spouse),
and the violation includes a willful misuse of funds by the
person or entity, the court may also require that full or
partial restitution of funds be made to such other
individual.
``(2) Any person or entity convicted of a violation of
subsection (a) of this section or of section 208 may not be
certified as a representative payee under section
1631(a)(2).''.
(3) Effective date.--The amendments made by this subsection
shall apply to conduct occurring on or after October 1, 1994.
(d) Authority to Redetermine Eligibility if Fraud is
Involved, and to Terminate Benefits if There is Insufficient
Reliable Evidence.--
(1) OASDI programs.--Section 205 of the Social Security Act
(42 U.S.C. 405) is amended by adding at the end the
following:
``(u)(1)(A) The Secretary shall immediately redetermine the
entitlement of individuals to monthly insurance benefits
under this title if there is reason to believe that fraud or
similar fault was involved in the application of the
individual for such benefits, unless a United States
attorney, or equivalent State prosecutor, with jurisdiction
over potential or actual related criminal cases, certifies,
in writing, that there is a substantial risk that such action
by the Secretary with regard to beneficiaries in a particular
investigation would jeopardize the criminal prosecution of a
person involved in a suspected fraud.
``(B) When redetermining the entitlement, or making an
initial determination of entitlement, of an individual under
this title, the Secretary shall disregard any evidence if
there is reason to believe that fraud or similar fault was
involved in the providing of such evidence.
``(2) For purposes of paragraph (1), similar fault is
involved with respect to a determination if--
``(A) an incorrect or incomplete statement that is material
to the determination is knowingly made; or
``(B) information that is material to the determination is
knowingly concealed.
``(3) If, after redetermining pursuant to this subsection
the entitlement of an individual to monthly insurance
benefits, the Secretary determines that there is insufficient
evidence to support such entitlement, the Secretary may
terminate such entitlement and may treat benefits paid on the
basis of such insufficient evidence as overpayments.''.
(2) SSI program.--Section 1631(e) of such Act (42 U.S.C.
1383(e)) is amended by adding at the end the following:
``(6)(A)(i) The Secretary shall immediately redetermine the
eligibility of an individual for benefits under this title if
there is reason to believe that fraud or similar fault was
involved in the application of the individual for such
benefits, unless a United States attorney, or equivalent
State prosecutor, with jurisdiction over potential or actual
related criminal cases, certifies, in writing, that there is
a substantial risk that such action by the Secretary with
regard to recipients in a particular investigation would
jeopardize the criminal prosecution of a person involved in a
suspected fraud.
``(ii) When redetermining the eligibility, or making an
initial determination of eligibility, of an individual for
benefits under this title, the Secretary shall disregard any
evidence if there is reason to believe that fraud or similar
fault was involved in the providing of such evidence.
``(B) For purposes of subparagraph (A), similar fault is
involved with respect to a determination if--
``(i) an incorrect or incomplete statement that is material
to the determination is knowingly made; or
``(ii) information that is material to the determination is
knowingly concealed.
``(C) If, after redetermining the eligibility of an
individual for benefits under this title, the Secretary
determines that there is insufficient evidence to support
such eligibility, the Secretary may terminate such
eligibility and may treat benefits paid on the basis of such
insufficient evidence as overpayments.''.
(3) Effective date.--The amendments made by this subsection
shall take effect on October 1, 1994, and shall apply to
determinations made before, on, or after such date.
(e) Availability of Recipient Identifying Information From
the Inspector General.--
(1) In general.--Section 1129 of the Social Security Act
(added by subsection (b) of this section) is amended by
adding at the end the following:
``(l) As soon as the Inspector General, Department of
Health and Human Services, has reason to believe that fraud
was involved in the application of an individual for monthly
insurance benefits under title II or for benefits under title
XVI, the Inspector General shall make available to the
Secretary information identifying the individual, unless a
United States attorney, or equivalent State prosecutor, with
jurisdiction over potential or actual related criminal cases,
certifies, in writing, that there is a substantial risk that
making the information so available in a particular
investigation or redetermining the eligibility of the
individual for such benefits would jeopardize the criminal
prosecution of any person who is a subject of the
investigation from which the information is derived.''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect on October 1, 1994.
(f) Authority to Use Available Preadmission Immigrant and
Refugee Medical Information.--
(1) In general.--Section 1631(e) of the Social Security Act
(42 U.S.C. 1383(e)) as amended by subsection (d)(2) of this
section, is amended by adding at the end the following:
``(7)(A) The Secretary shall request the Immigration and
Naturalization Service or the Centers for Disease Control to
provide the Secretary with whatever medical information,
identification information, and employment history either
such entity has with respect to any alien who has applied for
benefits under title XVI to the extent that the information
is relevant to any determination relating to eligibility for
such benefits under title XVI.
``(B) Subparagraph (A) shall not be construed to prevent
the Secretary from adjudicating the case before receiving
such information.''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect on October 1, 1994.
(g) Annual Reports on Reviews of OASDI and SSI Cases.--The
Secretary of Health and Human Services shall annually 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 extent to which the Secretary has exercised his
authority to review cases of entitlement to monthly insurance
benefits under title II of the Social Security Act and
supplemental security income cases under title XVI of such
Act, and the extent to which the cases reviewed were those
that involved a high likelihood or probability of fraud.
SEC. 207. DISABILITY REVIEW REQUIRED FOR SSI RECIPIENTS WHO
ARE 18 YEARS OF AGE.
(a) Disability Review Requirement.--
(1) In general.--The applicable State agency or the
Secretary of Health and Human Services (as may be
appropriate) shall redetermine the eligibility of a qualified
individual for supplemental security income benefits under
title XVI of the Social Security Act by reason of disability,
by applying the criteria used in determining eligibility for
such benefits of applicants who have attained 18 years of
age.
(2) When conducted.--The redetermination required by
paragraph (1) with respect to a qualified individual shall be
conducted during the 1-year period that begins on the date
the qualified individual attains 18 years of age.
(3) Minimum number of reviews.--The Secretary shall conduct
redeterminations under paragraph (1) with respect to not less
than \1/3\ of qualified individuals in each of fiscal years
1996, 1997, and 1998.
(4) Qualified individual defined.--As used in this
paragraph, the term ``qualified individual'' means a
recipient of supplemental security income benefits under
title XVI of the Social Security Act by reason of disability
who attains 18 years of age in or after the 9th month after
the month in which this Act is enacted.
(5) Substitute for a continuing disability review.--A
redetermination under paragraph (1) of this subsection shall
be considered a substitute for a review required under
section 1614(a)(3)(G) of the Social Security Act.
(6) Sunset.--Paragraph (1) shall have no force or effect
after October 1, 1998.
(b) Report to the Congress.--Not later than October 1,
1998, the Secretary of Health and Human Services 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 activities conducted under subsection (a).
SEC. 208. CONTINUING DISABILITY REVIEWS.
(a) Temporary Annual Minimum Number of Reviews.--During
each year of the 3-year period that begins on October 1,
1995, the Secretary of Health and Human Services shall apply
section 221(i) of the Social Security Act in making
disability determinations under title XVI of such Act with
respect to at least 100,000 recipients of supplemental
security income benefits under such title.
(b) Report to the Congress.--Not later than October 1,
1998, the Secretary of Health and Human Services 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 activities conducted under subsection (a).
SEC. 209. EXEMPTION FROM ADJUSTMENT IN PASS-ALONG
REQUIREMENTS.
(a) In General.--Section 1618(b) of the Social Security Act
(42 U.S.C. 1382g(b)) is amended--
(1) by inserting ``(1)'' after ``(b)''; and
(2) by adding at the end the following:
``(2) For purposes of determining under paragraph (1)
whether a State's expenditures for supplementary payments in
the 12-month period beginning on the effective date of any
increase in the level of supplemental security income
benefits are not less than the State's expenditures for such
payments in the preceding 12-month period, the Secretary, in
computing the State's expenditures, shall disregard, pursuant
to a 1-time election of the State, all expenditures by the
State for retroactive supplementary payments that are
required to be made in connection with the retroactive
supplemental security income benefits referred to in section
5041 of the Omnibus Budget Reconciliation Act of 1990.''.
(b) Applicability.--The amendments made by subsection (a)
shall apply with respect to increases in the level of
supplemental security income benefits under title XVI of the
Social Security Act whether occurring before, on, or after
the date of the enactment of this Act.
TITLE III--MISCELLANEOUS PROGRAM IMPROVEMENTS
SEC. 301. ISSUANCE OF PHYSICAL DOCUMENTS IN THE FORM OF
BONDS, NOTES, OR CERTIFICATES TO THE SOCIAL
SECURITY TRUST FUNDS.
(a) Requirement that Obligations Issued to the OASDI Trust
Funds Be Evidenced by Paper Instruments in the Form of Bonds,
Notes, or Certificates of Indebtedness Setting Forth Their
Terms.--Section 201(d) of the Social Security Act (42 U.S.C.
401(d)) is amended by inserting after the fifth sentence the
following new sentence: ``Each obligation issued for purchase
by the Trust Funds under this subsection shall be evidenced
by a paper instrument in the form of a bond, note, or
certificate of indebtedness issued by the Secretary of the
Treasury setting forth the principal amount, date of
maturity, and interest rate of the obligation, and stating on
its face that the obligation shall be incontestable in the
hands of the Trust Fund to which it is issued, that the
obligation is supported by the full faith and credit of the
United States, and that the United States is pledged to the
payment of the obligation with respect to both principal and
interest.''.
(b) Payment to the OASDI Trust Funds from the General Fund
of the Treasury of Interest on Obligations, and of Proceeds
from the Sale or Redemption of Obligations, Required to Be in
the Form of Checks.--Section 201(f) of such Act (42 U.S.C.
401(f)) is amended by adding at the end the following new
sentence: ``Payment from the general fund of the the Treasury
to either of the Trust Funds of any such interest or proceeds
shall be in the form of paper checks drawn on such general
fund to the order of such Trust Fund.''.
(c) Effective Date.--
(1) In general.--The amendments made by this section shall
apply with respect to obligations issued, and payments made,
after 60 days after the date of the enactment of this Act.
(2) Treatment of outstanding obligations.--Not later than
60 days after the date of the enactment of this Act, the
Secretary of the Treasury shall issue to the Federal Old-Age
and Survivors Insurance Trust Fund or the Federal Disability
Insurance Trust Fund, as applicable, a paper instrument, in
the form of a bond, note, or certificate of indebtedness, for
each obligation which has been issued to the Trust Fund under
section 201(d) of the Social Security Act and which is
outstanding as of such date. Each such document shall set
forth the principal amount, date of maturity, and interest
rate of the obligation, and shall state on its face that the
obligation shall be incontestable in the hands of the Trust
Fund to which it was issued, that the obligation is supported
by the full faith and credit of the United States, and that
the United States is pledged to the payment of the obligation
with respect to both principal and interest.
SEC. 302. GAO STUDY REGARDING TELEPHONE ACCESS TO LOCAL
OFFICES OF THE SOCIAL SECURITY ADMINISTRATION.
(a) Study.--The Comptroller General of the United States
shall conduct a study of telephone access to local offices of
the Social Security Administration.
(b) Matters To Be Studied.--In conducting the study under
this section, the Comptroller General shall make an
independent assessment of the Social Security
Administration's use of innovative technology (including
attendant call and voice mail) to increase public telephone
access to local offices of the Administration. Such study
shall include--
(1) an assessment of the aggregate impact of such
technology on public access to the local offices, and
(2) a separate assessment of the impact of such technology
on public access to those local offices to which access was
restricted on October 1, 1989.
(c) Report.--Not later than January 31, 1996, the
Comptroller General shall submit a report on the results of
the study conducted pursuant to this section to the Committee
on Ways and Means of the House of Representatives and the
Committee on Finance of the Senate.
SEC. 303. EXPANSION OF STATE OPTION TO EXCLUDE SERVICE OF
ELECTION OFFICIALS OR ELECTION WORKERS FROM
COVERAGE.
(a) Limitation on Mandatory Coverage of State Election
Officials and Election Workers Without State Retirement
System.--
(1) Amendment to social security act.--Section
210(a)(7)(F)(iv) of the Social Security Act (42 U.S.C.
410(a)(7)(F)(iv)) (as amended by section 11332(a) of the
Omnibus Budget Reconciliation Act of 1990) is amended by
striking ``$100'' and inserting ``$1,000 with respect to
service performed during any calendar year commencing on or
after January 1, 1995, ending on or before December 31, 1999,
and the adjusted amount determined under section 218(c)(8)(B)
for any calendar year commencing on or after January 1, 2000,
with respect to service performed during such calendar
year''.
(2) Amendment to fica.--Section 3121(b)(7)(F)(iv) of the
Internal Revenue Code of 1986 (as amended by section 11332(b)
of the Omnibus Budget Reconciliation Act of 1990) is amended
by striking ``$100'' and inserting ``$1,000 with respect to
service performed during any calendar year commencing on or
after January 1, 1995, ending on or before December 31, 1999,
and the adjusted amount determined under section 218(c)(8)(B)
of the Social Security Act for any calendar year commencing
on or after January 1, 2000, with respect to service
performed during such calendar year''.
(b) Conforming Amendments Relating to Medicare Qualified
Government Employment.--
(1) Amendment to social security act.--Section 210(p)(2)(E)
of the Social Security Act (42 U.S.C. 410(p)(2)(E)) is
amended by striking ``$100'' and inserting ``$1,000 with
respect to service performed during any calendar year
commencing on or after January 1, 1995, ending on or before
December 31, 1999, and the adjusted amount determined under
section 218(c)(8)(B) for any calendar year commencing on or
after January 1, 2000, with respect to service performed
during such calendar year''.
(2) Amendment to fica.--Section 3121(u)(2)(B)(ii)(V) of the
Internal Revenue Code of 1986 is amended by striking ``$100''
and inserting ``$1,000 with respect to service performed
during any calendar year commencing on or after January 1,
1995, ending on or before December 31, 1999, and the adjusted
amount determined under section 218(c)(8)(B) of the Social
Security Act for any calendar year commencing on or after
January 1, 2000, with respect to service performed during
such calendar year''.
(c) Authority for States To Modify Coverage Agreements With
Respect to Election Officials and Election Workers.--Section
218(c)(8) of the Social Security Act (42 U.S.C. 418(c)(8)) is
amended--
(1) by striking ``on or after January 1, 1968,'' and
inserting ``at any time'';
(2) by striking ``$100'' and inserting ``$1,000 with
respect to service performed during any calendar year
commencing on or after January 1, 1995, ending on or before
December 31, 1999, and the adjusted amount determined under
subparagraph (B) for any calendar year commencing on or after
January 1, 2000, with respect to service performed during
such calendar year''; and
(3) by striking the last sentence and inserting the
following new sentence: ``Any modification of an agreement
pursuant to this paragraph shall be effective with respect to
services performed in and after the calendar year in which
the modification is mailed or delivered by other means to the
Secretary.''.
(d) Indexation of Exempt Amount.--Section 218(c)(8) of such
Act (as amended by subsection (c)) is further amended--
(1) by inserting ``(A)'' after ``(8)''; and
(2) by adding at the end the following new subparagraph:
``(B) For each year after 1999, the Secretary shall adjust
the amount referred to in subparagraph (A) at the same time
and in the same manner as is provided under section
215(a)(1)(B)(ii) with respect to the amounts referred to in
section 215(a)(1)(B)(i), except that--
``(i) for purposes of this subparagraph, 1997 shall be
substituted for the calendar year referred to in section
215(a)(1)(B)(ii)(II), and
``(ii) such amount as so adjusted, if not a multiple of
$100, shall be rounded to the next higher multiple of $100
where such amount is a multiple of $50 and to the nearest
multiple of $100 in any other case.
The Secretary shall determine and publish in the Federal
Register each adjusted amount determined under this
subparagraph not later than November 1 preceding the year for
which the adjustment is made.''.
(e) Effective Date.--The amendments made by subsections
(a), (b), and (c) shall apply with respect to service
performed on or after January 1, 1995.
SEC. 304. USE OF SOCIAL SECURITY NUMBERS BY STATES AND LOCAL
GOVERNMENTS AND FEDERAL DISTRICT COURTS FOR
JURY SELECTION PURPOSES.
(a) In General.--Section 205(c)(2) of the Social Security
Act (42 U.S.C. 405(c)(2)) is amended--
(1) in subparagraph (B)(i), by striking ``(E)'' in the
matter preceding subclause (I) and inserting ``(F)'';
(2) by redesignating subparagraphs (E) and (F) as
subparagraphs (F) and (G), respectively; and
(3) by inserting after subparagraph (D) the following:
``(E)(i) It is the policy of the United States that--
``(I) any State (or any political subdivision of a State)
may utilize the social security account numbers issued by the
Secretary for the additional purposes described in clause
(ii) if such numbers have been collected and are otherwise
utilized by such State (or political subdivision) in
accordance with applicable law, and
``(II) any district court of the United States may use, for
such additional purposes, any such social security account
numbers which have been so collected and are so utilized by
any State.
``(ii) The additional purposes described in this clause are
the following:
``(I) Identifying duplicate names of individuals on master
lists used for jury selection purposes.
``(II) Identifying on such master lists those individuals
who are ineligible to serve on a jury by reason of their
conviction of a felony.
``(iii) To the extent that any provision of Federal law
enacted before the date of the enactment of this subparagraph
is inconsistent with the policy set forth in clause (i), such
provision shall, on and after that date, be null, void, and
of no effect.
``(iv) For purposes of this subparagraph, the term `State'
has the meaning such term has in subparagraph (D).''.
(b) Conforming Amendment.--Section 1140(a)(2) of such Act
(42 U.S.C. 1320b-10(a)(2)) is amended by striking
``205(c)(2)(E)'' and inserting ``205(c)(2)(F)''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 305. AUTHORIZATION FOR ALL STATES TO EXTEND COVERAGE TO
STATE AND LOCAL POLICE OFFICERS AND
FIREFIGHTERS UNDER EXISTING COVERAGE
AGREEMENTS.
(a) In General.--Section 218(l) of the Social Security Act
(42 U.S.C. 418(l)) is amended--
(1) in paragraph (1), by striking ``(1)'' after ``(l)'',
and by striking ``the State of'' and all that follows through
``prior to the date of enactment of this subsection'' and
inserting ``a State entered into pursuant to this section'';
and
(2) by striking paragraph (2).
(b) Conforming Amendment.--Section 218(d)(8)(D) of such Act
(42 U.S.C. 418(d)(8)(D)) is amended by striking ``agreements
with the States named in'' and inserting ``State agreements
modified as provided in''.
(c) Effective Date.--The amendments made by this section
shall apply with respect to modifications filed by States
after the date of the enactment of this Act.
SEC. 306. LIMITED EXEMPTION FOR CANADIAN MINISTERS FROM
CERTAIN SELF-EMPLOYMENT TAX LIABILITY.
(a) In General.--Notwithstanding any other provision of
law, if--
(1) an individual performed services described in section
1402(c)(4) of the Internal Revenue Code of 1986 which are
subject to tax under section 1401 of such Code,
(2) such services were performed in Canada at a time when
no agreement between the United States and Canada pursuant to
section 233 of the Social Security Act was in effect, and
(3) such individual was required to pay contributions on
the earnings from such services under the social insurance
system of Canada,
then such individual may file a certificate under this
section in such form and manner, and with such official, as
may be prescribed in regulations issued under chapter 2 of
such Code. Upon the filing of such certificate,
notwithstanding any judgment which has been entered to the
contrary, such individual shall be exempt from payment of
such tax with respect to services described in paragraphs (1)
and (2) and from any penalties or interest for failure to pay
such tax or to file a self-employment tax return as required
under section 6017 of such Code.
(b) Period for Filing.--A certificate referred to in
subsection (a) may be filed only during the 180-day period
commencing with the date on which the regulations referred to
in subsection (a) are issued.
(c) Taxable Years Affected by Certificate.--A certificate
referred to in subsection (a) shall be effective for taxable
years ending after December 31, 1978, and before January 1,
1985.
(d) Restriction on Crediting of Exempt Self-Employment
Income.--In any case in which an individual is exempt under
this section from paying a tax imposed under section 1401 of
the Internal Revenue Code of 1986, any income on which such
tax would have been imposed but for such exemption shall not
constitute self-employment income under section 211(b) of the
Social Security Act (42 U.S.C. 411(b)), and, if such
individual's primary insurance amount has been determined
under section 215 of such Act (42 U.S.C. 415),
notwithstanding section 215(f)(1) of such Act, the Secretary
of Health and Human Services (prior to March 31, 1995) or the
Commissioner of Social Security (after March 30, 1995) shall
recompute such primary insurance amount so as to take into
account the provisions of this subsection. The recomputation
under this subsection shall be effective with respect to
benefits for months following approval of the certificate of
exemption.
SEC. 307. EXCLUSION OF TOTALIZATION BENEFITS FROM THE
APPLICATION OF THE WINDFALL ELIMINATION
PROVISION.
(a) In General.--Section 215(a)(7) of the Social Security
Act (42 U.S.C. 415(a)(7)) is amended--
(1) in subparagraph (A), by striking ``but excluding'' and
all that follows through ``1937'' and inserting ``but
excluding (I) a payment under the Railroad Retirement Act of
1974 or 1937, and (II) a payment by a social security system
of a foreign country based on an agreement concluded between
the United States and such foreign country pursuant to
section 233''; and
(2) in subparagraph (E), by inserting after ``in the case
of an individual'' the following: ``whose eligibility for
old-age or disability insurance benefits is based on an
agreement concluded pursuant to section 233 or an
individual''.
(b) Conforming Amendment Relating to Benefits Under 1939
Act.--Section 215(d)(3) of such Act (42 U.S.C. 415(d)(3)) is
amended by striking ``but excluding'' and all that follows
through ``1937'' and inserting ``but excluding (I) a payment
under the Railroad Retirement Act of 1974 or 1937, and (II) a
payment by a social security system of a foreign country
based on an agreement concluded between the United States and
such foreign country pursuant to section 233''.
(c) Effective Date.--The amendments made by this section
shall apply (notwithstanding section 215(f)(1) of the Social
Security Act (42 U.S.C. 415(f)(1))) with respect to benefits
payable for months after December 1994.
SEC. 308. EXCLUSION OF MILITARY RESERVISTS FROM APPLICATION
OF THE GOVERNMENT PENSION OFFSET AND WINDFALL
ELIMINATION PROVISIONS.
(a) Exclusion from Government Pension Offset Provisions.--
Subsections (b)(4), (c)(2), (e)(7), (f)(2), and (g)(4) of
section 202 of the Social Security Act (42 U.S.C. 402 (b)(4),
(c)(2), (e)(7), (f)(2), and (g)(4)) are each amended--
(1) in subparagraph (A)(ii), by striking ``unless
subparagraph (B) applies.'';
(2) in subparagraph (A), by striking ``The'' in the matter
following clause (ii) and inserting ``unless subparagraph (B)
applies. The''; and
(3) in subparagraph (B), by redesignating the existing
matter as clause (ii), and by inserting before such clause
(ii) (as so redesignated) the following:
``(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)).''.
(b) Exclusion From Windfall Elimination Provisions.--
Section 215(a)(7)(A) of such Act (as amended by section
307(a) of this Act) and section 215(d)(3) of such Act (as
amended by section 307(b) of this Act) are each further
amended--
(1) by striking ``and'' before ``(II)''; and
(2) by striking ``section 233'' and inserting ``section
233, and (III) a payment based wholly on service as a member
of a uniformed service (as defined in section 210(m))''.
(c) Effective Date.--The amendments made by this section
shall apply (notwithstanding section 215(f) of the Social
Security Act) with respect to benefits payable for months
after December 1994.
SEC. 309. REPEAL OF THE FACILITY-OF-PAYMENT PROVISION.
(a) Repeal of Rule Precluding Redistribution Under Family
Maximum.--Section 203(i) of the Social Security Act (42
U.S.C. 403(i)) is repealed.
(b) Coordination Under Family Maximum of Reduction in
Beneficiary's Auxiliary Benefits With Suspension of Auxiliary
Benefits of Other Beneficiary Under Earnings Test.--Section
203(a)(4) of such Act (42 U.S.C. 403(a)(4)) is amended by
striking ``section 222(b). Whenever'' and inserting the
following: ``section 222(b). Notwithstanding the preceding
sentence, any reduction under this subsection in the case of
an individual who is entitled to a benefit under subsection
(b), (c), (d), (e), (f), (g), or (h) of section 202 for any
month on the basis of the same wages and self-employment
income as another person--
``(A) who also is entitled to a benefit under subsection
(b), (c), (d), (e), (f), (g), or (h) of section 202 for such
month,
``(B) who does not live in the same household as such
individual, and
``(C) whose benefit for such month is suspended (in whole
or in part) pursuant to subsection (h)(3) of this section,
shall be made before the suspension under subsection (h)(3).
Whenever''.
(c) Conforming Amendment Applying Earnings Reporting
Requirement Despite Suspension of Benefits.--The third
sentence of section 203(h)(1)(A) of such Act (42 U.S.C.
403(h)(1)(A)) is amended by striking ``Such report need not
be made'' and all that follows through ``The Secretary may
grant'' and inserting the following: ``Such report need not
be made for any taxable year--
``(i) beginning with or after the month in which such
individual attained age 70, or
``(ii) if benefit payments for all months (in such taxable
year) in which such individual is under age 70 have been
suspended under the provisions of the first sentence of
paragraph (3) of this subsection, unless--
``(I) such individual is entitled to benefits under
subsection (b), (c), (d), (e), (f), (g), or (h) of section
202,
``(II) such benefits are reduced under subsection (a) of
this section for any month in such taxable year, and
``(III) in any such month there is another person who also
is entitled to benefits under subsection (b), (c), (d), (e),
(f), (g), or (h) of section 202 on the basis of the same
wages and self-employment income and who does not live in the
same household as such individual.
The Secretary may grant''.
(d) Conforming Amendment Deleting Special Income Tax
Treatment of Benefits No Longer Required by Reason of
Repeal.--Section 86(d)(1) of the Internal Revenue Code of
1986 (relating to income tax on social security benefits) is
amended by striking the last sentence.
(e) Effective Dates.--
(1) The amendments made by subsections (a), (b), and (c)
shall apply with respect to benefits payable for months after
December 1995.
(2) The amendment made by subsection (d) shall apply with
respect to benefits received after December 31, 1995, in
taxable years ending after such date.
SEC. 310. MAXIMUM FAMILY BENEFITS IN GUARANTEE CASES.
(a) In General.--Section 203(a) of the Social Security Act
(42 U.S.C. 403(a)) is amended by adding at the end the
following new paragraph:
``(10)(A) Subject to subparagraphs (B) and (C)--
``(i) the total monthly benefits to which beneficiaries may
be entitled under sections 202 and 223 for a month on the
basis of the wages and self-employment income of an
individual whose primary insurance amount is computed under
section 215(a)(2)(B)(i) shall equal the total monthly
benefits which were authorized by this section with respect
to such individual's primary insurance amount for the last
month of his prior entitlement to disability insurance
benefits, increased for this purpose by the general benefit
increases and other increases under section 215(i) that would
have applied to such total monthly benefits had the
individual remained entitled to disability insurance benefits
until the month in which he became entitled to old-age
insurance benefits or reentitled to disability insurance
benefits or died, and
``(ii) the total monthly benefits to which beneficiaries
may be entitled under sections 202 and 223 for a month on the
basis of the wages and self-employment income of an
individual whose primary insurance amount is computed under
section 215(a)(2)(C) shall equal the total monthly benefits
which were authorized by this section with respect to such
individual's primary insurance amount for the last month of
his prior entitlement to disability insurance benefits.
``(B) In any case in which--
``(i) the total monthly benefits with respect to such
individual's primary insurance amount for the last month of
his prior entitlement to disability insurance benefits was
computed under paragraph (6), and
``(ii) the individual's primary insurance amount is
computed under subparagraph (B)(i) or (C) of section
215(a)(2) by reason of the individual's entitlement to old-
age insurance benefits or death,
the total monthly benefits shall equal the total monthly
benefits that would have been authorized with respect to the
primary insurance amount for the last month of his prior
entitlement to disability insurance benefits if such total
monthly benefits had been computed without regard to
paragraph (6).
``(C) This paragraph shall apply before the application of
paragraph (3)(A), and before the application of section
203(a)(1) of this Act as in effect in December 1978.''.
(b) Conforming Amendment.--Section 203(a)(8) of such Act
(42 U.S.C. 403(a)(8)) is amended by striking ``Subject to
paragraph (7),'' and inserting ``Subject to paragraph (7) and
except as otherwise provided in paragraph (10)(C),''.
(c) Effective Date.--The amendments made by this section
shall apply for the purpose of determining the total monthly
benefits to which beneficiaries may be entitled under
sections 202 and 223 of the Social Security Act based on the
wages and self-employment income of an individual who--
(1) becomes entitled to an old-age insurance benefit under
section 202(a) of such Act,
(2) becomes reentitled to a disability insurance benefit
under section 223 of such Act, or
(3) dies,
after December 1995.
SEC. 311. AUTHORIZATION FOR DISCLOSURE OF SOCIAL SECURITY
INFORMATION FOR PURPOSES OF PUBLIC OR PRIVATE
EPIDEMIOLOGICAL AND SIMILAR RESEARCH.
(a) In General.--Section 1106 of the Social Security Act
(42 U.S.C. 1306) is amended--
(1) by redesignating subsections (d) and (e) as subsections
(e) and (f), respectively;
(2) in subsection (f) (as so redesignated), by striking
``subsection (d)'' and inserting ``subsection (e)''; and
(3) by inserting after subsection (c) the following new
subsection:
``(d) Notwithstanding any other provision of this section,
in any case in which--
``(1) information regarding whether an individual is shown
on the records of the Secretary as being alive or deceased is
requested from the Secretary for purposes of epidemiological
or similar research which the Secretary finds may reasonably
be expected to contribute to a national health interest, and
``(2) the requester agrees to reimburse the Secretary for
providing such information and to comply with limitations on
safeguarding and rerelease or redisclosure of such
information as may be specified by the Secretary,
the Secretary shall comply with such request, except to the
extent that compliance with such request would constitute a
violation of the terms of any contract entered into under
section 205(r).''.
(b) Availability of Information Returns Regarding Wages
Paid Employees.--Section 6103(l)(5) of the Internal Revenue
Code of 1986 (relating to disclosure of returns and return
information to the Department of Health and Human Services
for purposes other than tax administration) is amended--
(1) by striking ``for the purpose of'' and inserting ``for
the purpose of--'';
(2) by striking ``carrying out, in accordance with an
agreement'' and inserting the following:
``(A) carrying out, in accordance with an agreement'';
(3) by striking ``program.'' and inserting ``program; or'';
and
(4) by adding at the end the following new subparagraph:
``(B) providing information regarding the mortality status
of individuals for epidemiological and similar research in
accordance with section 1106(d) of the Social Security
Act.''.
(c) Effective Date.--The amendments made by this section
shall apply with respect to requests for information made
after the date of the enactment of this Act.
SEC. 312. MISUSE OF SYMBOLS, EMBLEMS, OR NAMES IN REFERENCE
TO SOCIAL SECURITY ADMINISTRATION OR DEPARTMENT
OF HEALTH AND HUMAN SERVICES.
(a) Prohibition of Unauthorized Reproduction, Reprinting,
or Distribution for Fee of Certain Official Publications.--
Section 1140(a) of the Social Security Act (42 U.S.C. 1320b-
10(a)) is amended--
(1) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively;
(2) by inserting ``(1)'' after ``(a)''; and
(3) by adding at the end the following new paragraph:
``(2) No person may, for a fee, reproduce, reprint, or
distribute any item consisting of a form, application, or
other publication of the Social Security Administration or of
the Department of Health and Human Services unless such
person has obtained specific, written authorization for such
activity in accordance with regulations which the Secretary
shall prescribe.''.
(b) Addition to Prohibited Words, Letters, Symbols, and
Emblems.--Paragraph (1) of section 1140(a) of such Act (as
redesignated by subsection (a)) is further amended--
(1) in subparagraph (A) (as redesignated), by striking
``Administration', the letters `SSA' or `HCFA','' and
inserting ``Administration', `Department of Health and Human
Services', `Health and Human Services', `Supplemental
Security Income Program', or `Medicaid', the letters `SSA',
`HCFA', `DHHS', `HHS', or `SSI',''; and
(2) in subparagraph (B) (as amended by section 304 and as
redesignated), by striking ``Social Security Administration''
each place it appears and inserting ``Social Security
Administration, Health Care Financing Administration, or
Department of Health and Human Services'', by striking ``or
of the Health Care Financing Administration'', and by
inserting ``or the Medicare card,'' after ``205(c)(2)(F)''.
(c) Exemption for Use of Words, Letters, Symbols, and
Emblems of State and Local Government Agencies by Such
Agencies.--Paragraph (1) of section 1140(a) of such Act (as
redesignated by subsection (a)) is further amended by adding
at the end the following new sentence: ``The preceding
provisions of this subsection shall not apply with respect to
the use by any agency or instrumentality of a State or
political subdivision of a State of any words or letters
which identify an agency or instrumentality of such State or
of a political subdivision of such State or the use by any
such agency or instrumentality of any symbol or emblem of an
agency or instrumentality of such State or a political
subdivision of such State.''.
(d) Inclusion of Reasonableness Standard.--Section
1140(a)(1) of such Act (as amended by the preceding
provisions of this section) is further amended, in the matter
following subparagraph (B) (as redesignated), by striking
``convey'' and inserting ``convey, or in a manner which
reasonably could be interpreted or construed as conveying,''.
(e) Ineffectiveness of Disclaimers.--Subsection (a) of
section 1140 of such Act (as amended by the preceding
provisions of this section) is further amended by adding at
the end the following new paragraph:
``(3) Any determination of whether the use of one or more
words, letters, symbols, or emblems (or any combination or
variation thereof) in connection with an item described in
paragraph (1) or the reproduction, reprinting, or
distribution of an item described in paragraph (2) is a
violation of this subsection shall be made without regard to
any inclusion in such item (or any so reproduced, reprinted,
or distributed copy thereof) of a disclaimer of affiliation
with the United States Government or any particular agency or
instrumentality thereof.''.
(f) Violations With Respect to Individual Items.--Section
1140(b)(1) of such Act (42 U.S.C. 1320b-10(b)(1)) is amended
by adding at the end the following new sentence: ``In the
case of any items referred to in subsection (a)(1) consisting
of pieces of mail, each such piece of mail which contains one
or more words, letters, symbols, or emblems in violation of
subsection (a) shall represent a separate violation. In the
case of any item referred to in subsection (a)(2), the
reproduction, reprinting, or distribution of such item shall
be treated as a separate violation with respect to each copy
thereof so reproduced, reprinted, or distributed.''.
(g) Elimination of Cap on Aggregate Liability Amount.--
(1) Repeal.--Paragraph (2) of section 1140(b) of such Act
(42 U.S.C. 1320b-10(b)(2)) is repealed.
(2) Conforming amendments.--Section 1140(b) of such Act is
further amended--
(A) by striking ``(1) Subject to paragraph (2), the'' and
inserting ``The'';
(B) by redesignating subparagraphs (A) and (B) as
paragraphs (1) and (2), respectively; and
(C) in paragraph (1) (as redesignated), by striking
``subparagraph (B)'' and inserting ``paragraph (2)''.
(h) Removal of Formal Declination Requirement.--Section
1140(c)(1) of such Act (42 U.S.C. 1320b-10(c)(1)) is amended
by inserting ``and the first sentence of subsection (c)''
after ``and (i)''.
(i) Penalties Relating to Social Security Administration
Deposited in OASI Trust Fund, and Penalties Related to Health
Care Financing Administration Deposited in the HI and SMI
Trust Funds.--Section 1140(c)(2) of such Act (42 U.S.C.
1320b-10(c)(2)) is amended in the second sentence by striking
``United States.'' and inserting ``United States, except that
(A) to the extent that such amounts are recovered under this
section as penalties imposed for misuse of words, letters,
symbols, or emblems relating to the Social Security
Administration, such amounts shall be deposited into the
Federal Old-Age and Survivors Insurance Trust Fund, and (B)
to the extent that such amounts are recovered under this
section as penalties imposed for misuse of words, letters,
symbols, or emblems relating to the Department of Health and
Human Services, such amounts shall be deposited into the
Federal Hospital Insurance Trust Fund or the Federal
Supplementary Medical Insurance Trust Fund, as
appropriate.''.
(j) Enforcement.--Section 1140 of such Act (42 U.S.C.
1320b-10) is amended by adding at the end the following new
subsection:
``(d) The preceding provisions of this section may be
enforced through the Office of the Inspector General of the
Department of Health and Human Services.''.
(k) Reports.--
(1) In general.--The Secretary of Health and Human Services
and the Commissioner of Social Security shall each submit to
the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate 3
reports on the operation of section 1140 of the Social
Security Act with respect to the Social Security
Administration or the Department of Health and Human Services
during the period covered by the report, which shall
specify--
(A) the number of complaints of violations of such section
received by the Social Security Administration or the
Department of Health and Human Services during the period,
(B) the number of cases in which the Social Security
Administration or the Department, during the period, sent a
notice of violation of such section requesting that an
individual cease activities in violation of such section,
(C) the number of cases in which the Social Security
Administration or the Department formally proposed a civil
money penalty in a demand letter during the period,
(D) the total amount of civil money penalties assessed by
the Social Security Administration or the Department under
this section during the period,
(E) the number of requests for hearings filed during the
period by the Social Security Administration or the
Department pursuant to sections 1140(c)(1) and 1128A(c)(2) of
the Social Security Act,
(F) the disposition during the period of hearings filed
pursuant to sections 1140(c)(1) and 1128A(c)(2) of the Social
Security Act, and
(G) the total amount of civil money penalties collected
under this section and deposited into the Federal Old-Age and
Survivors Insurance Trust Fund or the Health Insurance and
Supplementary Medical Insurance Trust Funds, as applicable,
during the period.
(2) When due.--The reports required by paragraph (1) shall
be submitted not later than December 1, 1995, not later than
December 1, 1997, and not later than December 1, 1999,
respectively.
(l) Prohibition of Misuse of Department of the Treasury
Names, Symbols, Etc.--
(1) General rule.--Subchapter II of chapter 3 of title 31,
United States Code, is amended by adding at the end thereof
the following new section:
``Sec. 333. Prohibition of misuse of Department of the
Treasury names, symbols, etc.
``(a) General Rule.--No person may use, in connection with,
or as a part of, any advertisement, solicitation, business
activity, or product, whether alone or with other words,
letters, symbols, or emblems--
``(1) the words `Department of the Treasury', or the name
of any service, bureau, office, or other subdivision of the
Department of the Treasury,
``(2) the titles `Secretary of the Treasury' or `Treasurer
of the United States' or the title of any other officer or
employee of the Department of the Treasury,
``(3) the abbreviations or initials of any entity referred
to in paragraph (1),
``(4) the words `United States Savings Bond' or the name of
any other obligation issued by the Department of the
Treasury,
``(5) any symbol or emblem of an entity referred to in
paragraph (1) (including the design of any envelope or
stationary used by such an entity), and
``(6) any colorable imitation of any such words, titles,
abbreviations, initials, symbols, or emblems,
in a manner which could reasonably be interpreted or
construed as conveying the false impression that such
advertisement, solicitation, business activity, or product is
in any manner approved, endorsed, sponsored, or authorized
by, or associated with, the Department of the Treasury or any
entity referred to in paragraph (1) or any officer or
employee thereof.
``(b) Treatment of Disclaimers.--Any determination of
whether a person has violated the provisions of subsection
(a) shall be made without regard to any use of a disclaimer
of affiliation with the United States Government or any
particular agency or instrumentality thereof.
``(c) Civil Penalty.--
``(1) In general.--The Secretary of the Treasury may impose
a civil penalty on any person who violates the provisions of
subsection (a).
``(2) Amount of penalty.--The amount of the civil penalty
imposed by paragraph (1) shall not exceed $5,000 for each use
of any material in violation of subsection (a). If such use
is in a broadcast or telecast, the preceding sentence shall
be applied by substituting `$25,000' for `$5,000'.
``(3) Time limitations.--
``(A) Assessments.--The Secretary of the Treasury may
assess any civil penalty under paragraph (1) at any time
before the end of the 3-year period beginning on the date of
the violation with respect to which such penalty is imposed.
``(B) Civil action.--The Secretary of the Treasury may
commence a civil action to recover any penalty imposed under
this subsection at any time before the end of the 2-year
period beginning on the date on which such penalty was
assessed.
``(4) Coordination with subsection (d).--No penalty may be
assessed under this subsection with respect to any violation
after a criminal proceeding with respect to such violation
has been commenced under subsection (d).
``(d) Criminal Penalty.--
``(1) In general.--If any person knowingly violates
subsection (a), such person shall, upon conviction thereof,
be fined not more than $10,000 for each such use or
imprisoned not more than 1 year, or both. If such use is in a
broadcast or telecast, the preceding sentence shall be
applied by substituting `$50,000' for `$10,000'.
``(2) Time limitations.--No person may be prosecuted,
tried, or punished under paragraph (1) for any violation of
subsection (a) unless the indictment is found or the
information instituted during the 3-year period beginning on
the date of the violation.
``(3) Coordination with subsection (c).--No criminal
proceeding may be commenced under this subsection with
respect to any violation if a civil penalty has previously
been assessed under subsection (c) with respect to such
violation.''
(2) Clerical amendment.--The analysis for chapter 3 of
title 31, United States Code, is amended by adding after the
item relating to section 332 the following new item:
``333. Prohibition of misuse of Department of the Treasury names,
symbols, etc.''.
(3) Report.--Not later than May 1, 1996, the Secretary of
the Treasury shall submit a report to the Committee on Ways
and Means of the House of Representatives and the Committee
on Finance of the Senate on the implementation of the
amendments made by this section. Such report shall include
the number of cases in which the Secretary has notified
persons of violations of section 333 of title 31, United
States Code (as added by subsection (a)), the number of
prosecutions commenced under such section, and the total
amount of the penalties collected in such prosecutions.
(m) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply with respect to
violations occurring after March 31, 1995.
(2) Prohibition of misuse of department of the treasury
names, symbols, etc.--Subsection (l)(3) shall take effect on
the date of the enactment of this Act, and the amendments
made by paragraphs (1) and (2) of subsection (l) shall apply
with respect to violations occurring after such date.
SEC. 313. INCREASED PENALTIES FOR UNAUTHORIZED DISCLOSURE OF
SOCIAL SECURITY INFORMATION.
(a) Unauthorized Disclosure.--Section 1106(a) of the Social
Security Act (42 U.S.C. 1306(a)) is amended--
(1) by striking ``misdemeanor'' and inserting ``felony'';
(2) by striking ``$1,000'' and inserting ``$10,000 for each
occurrence of a violation''; and
(3) by striking ``one year'' and inserting ``5 years''.
(b) Unauthorized Disclosure by Fraud.--Section 1107(b) of
such Act (42 U.S.C. 1307(b)) is amended--
(1) by inserting ``social security account number,'' after
``information as to the'';
(2) by striking ``misdemeanor'' and inserting ``felony'';
(3) by striking ``$1,000'' and inserting ``$10,000 for each
occurrence of a violation''; and
(4) by striking ``one year'' and inserting ``5 years''.
(c) Effective Date.--The amendments made by this section
shall apply to violations occurring on or after the date of
the enactment of this Act.
SEC. 314. INCREASE IN AUTHORIZED PERIOD FOR EXTENSION OF TIME
TO FILE ANNUAL EARNINGS REPORT.
(a) In General.--Section 203(h)(1)(A) of the Social
Security Act (42 U.S.C. 403(h)(1)(A)) is amended in the last
sentence by striking ``three months'' and inserting ``four
months''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply with respect to reports of earnings for taxable
years ending on or after December 31, 1994.
SEC. 315. EXTENSION OF DISABILITY INSURANCE PROGRAM
DEMONSTRATION PROJECT AUTHORITY.
(a) In General.--Section 505 of the Social Security
Disability Amendments of 1980 (Public Law 96-265), as amended
by section 12101 of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (Public Law 99-272), section 10103
of the Omnibus Budget Reconciliation Act of 1989 (Public Law
101-239), and section 5120 of the Omnibus Budget
Reconciliation Act of 1990 (Public Law 101-508), is further
amended--
(1) in paragraph (3) of subsection (a), by striking ``June
10, 1993'' and inserting ``June 10, 1996'';
(2) in paragraph (4) of subsection (a), by striking
``1992'' and inserting ``1995''; and
(3) in subsection (c), by striking ``October 1, 1993'' and
inserting ``October 1, 1996''.
(b) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 316. CROSS-MATCHING OF SOCIAL SECURITY ACCOUNT NUMBER
INFORMATION AND EMPLOYER IDENTIFICATION NUMBER
INFORMATION MAINTAINED BY THE DEPARTMENT OF
AGRICULTURE.
(a) Social Security Account Number Information.--Clause
(iii) of section 205(c)(2)(C) of the Social Security Act (42
U.S.C. 405(c)(2)(C)) (as added by section 1735(a)(3) of the
Food, Agriculture, Conservation, and Trade Act of 1990
(Public Law 101-624; 104 Stat. 3791)) is amended--
(1) by inserting ``(I)'' after ``(iii)''; and
(2) by striking ``The Secretary of Agriculture shall
restrict'' and all that follows and inserting the following:
``(II) The Secretary of Agriculture may share any
information contained in any list referred to in subclause
(I) with any other agency or instrumentality of the United
States which otherwise has access to social security account
numbers in accordance with this subsection or other
applicable Federal law, except that the Secretary of
Agriculture may share such information only to the extent
that such Secretary determines such sharing would assist in
verifying and matching such information against information
maintained by such other agency or instrumentality. Any such
information shared pursuant to this subclause may be used by
such other agency or instrumentality only for the purpose of
effective administration and enforcement of the Food Stamp
Act of 1977 or for the purpose of investigation of violations
of other Federal laws or enforcement of such laws.
``(III) The Secretary of Agriculture, and the head of any
other agency or instrumentality referred to in this
subclause, shall restrict, to the satisfaction of the
Secretary of Health and Human Services, access to social
security account numbers obtained pursuant to this clause
only to officers and employees of the United States whose
duties or responsibilities require access for the purposes
described in subclause (II).
``(IV) The Secretary of Agriculture, and the head of any
agency or instrumentality with which information is shared
pursuant to clause (II), shall provide such other safeguards
as the Secretary of Health and Human Services determines to
be necessary or appropriate to protect the confidentiality of
the social security account numbers.''.
(b) Employer Identification Number Information.--Subsection
(f) of section 6109 of the Internal Revenue Code of 1986 (as
added by section 1735(c) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (Public Law 101-624; 104
Stat. 3792)) (relating to access to employer identification
numbers by Secretary of Agriculture for purposes of Food
Stamp Act of 1977) is amended--
(1) by striking paragraph (2) and inserting the following:
``(2) Sharing of information and safeguards.--
``(A) Sharing of information.--The Secretary of Agriculture
may share any information contained in any list referred to
in paragraph (1) with any other agency or instrumentality of
the United States which otherwise has access to employer
identification numbers in accordance with this section or
other applicable Federal law, except that the Secretary of
Agriculture may share such information only to the extent
that such Secretary determines such sharing would assist in
verifying and matching such information against information
maintained by such other agency or instrumentality. Any such
information shared pursuant to this subparagraph may be used
by such other agency or instrumentality only for the purpose
of effective administration and enforcement of the Food Stamp
Act of 1977 or for the purpose of investigation of violations
of other Federal laws or enforcement of such laws.
``(B) Safeguards.--The Secretary of Agriculture, and the
head of any other agency or instrumentality referred to in
subparagraph (A), shall restrict, to the satisfaction of the
Secretary of the Treasury, access to employer identification
numbers obtained pursuant to this subsection only to officers
and employees of the United States whose duties or
responsibilities require access for the purposes described in
subparagraph (A). The Secretary of Agriculture, and the head
of any agency or instrumentality with which information is
shared pursuant to subparagraph (A), shall provide such other
safeguards as the Secretary of the Treasury determines to be
necessary or appropriate to protect the confidentiality of
the employer identification numbers.'';
(2) in paragraph (3), by striking ``by the Secretary of
Agriculture pursuant to this subsection'' and inserting
``pursuant to this subsection by the Secretary of Agriculture
or the head of any agency or instrumentality with which
information is shared pursuant to paragraph (2)'', and by
striking ``social security account numbers'' and inserting
``employer identification numbers''; and
(3) in paragraph (4), by striking ``by the Secretary of
Agriculture pursuant to this subsection'' and inserting
``pursuant to this subsection by the Secretary of Agriculture
or any agency or instrumentality with which information is
shared pursuant to paragraph (2)''.
SEC. 317. CERTAIN TRANSFERS TO RAILROAD RETIREMENT ACCOUNT
MADE PERMANENT.
Subsection (c)(1)(A) of section 224 of the Railroad
Retirement Solvency Act of 1983 (relating to section 72(r)
revenue increase transferred to certain railroad accounts) is
amended by striking ``with respect to benefits received
before October 1, 1992''.
SEC. 318. AUTHORIZATION FOR USE OF SOCIAL SECURITY ACCOUNT
NUMBERS BY DEPARTMENT OF LABOR IN
ADMINISTRATION OF FEDERAL WORKERS' COMPENSATION
LAWS.
Section 205(c)(2)(C) of the Social Security Act (42 U.S.C.
405(c)(2)(C)) is amended by adding at the end the following
new clause:
``(ix) In the administration of the provisions of chapter
81 of title 5, United States Code, and the Longshore and
Harbor Workers' Compensation Act (33 U.S.C. 901 et seq.), the
Secretary of Labor may require by regulation that any person
filing a notice of injury or a claim for benefits under such
provisions provide as part of such notice or claim such
person's social security account number, subject to the
requirements of this clause. No officer or employee of the
Department of Labor shall have access to any such number for
any purpose other than the establishment of a system of
records necessary for the effective administration of such
provisions. The Secretary of Labor shall restrict, to the
satisfaction of the Secretary of Health and Human Services,
access to social security account numbers obtained pursuant
to this clause to officers and employees of the United States
whose duties or responsibilities require access for the
administration or enforcement of such provisions. The
Secretary of Labor shall provide such other safeguards as the
Secretary of Health and Human Services determines to be
necessary or appropriate to protect the confidentiality of
the social security account numbers.''.
SEC. 319. COVERAGE UNDER FICA OF FEDERAL EMPLOYEES
TRANSFERRED TEMPORARILY TO INTERNATIONAL
ORGANIZATIONS.
(a) Treatment of Service in the Employ of International
Organizations by Certain Transferred Federal Employees.--
(1) In general.--Section 3121 of the Internal Revenue Code
of 1986 (relating to definitions) is amended by adding at the
end the following new subsection:
``(y) Service in the Employ of International Organizations
by Certain Transferred Federal Employees.--
``(1) In general.--For purposes of this chapter, service
performed in the employ of an international organization by
an individual pursuant to a transfer of such individual to
such international organization pursuant to section 3582 of
title 5, United States Code, shall constitute `employment'
if--
``(A) immediately before such transfer, such individual
performed service with a Federal agency which constituted
`employment' under subsection (b) for purposes of the taxes
imposed by sections 3101(a) and 3111(a), and
``(B) such individual would be entitled, upon separation
from such international organization and proper application,
to reemployment with such Federal agency under such section
3582.
``(2) Definitions.--For purposes of this subsection--
``(A) Federal agency.--The term `Federal agency' means an
agency, as defined in section 3581(1) of title 5, United
States Code.
``(B) International organization.--The term `international
organization' has the meaning provided such term by section
3581(3) of title 5, United States Code.''
(2) Contributions by federal agency.--Section 3122 of such
Code (relating to Federal service) is amended by inserting
after the first sentence the following new sentence: ``In the
case of the taxes imposed by this chapter with respect to
service performed in the employ of an international
organization pursuant to a transfer to which the provisions
of section 3121(y) are applicable, the determination of the
amount of remuneration for such service, and the return and
payment of the taxes imposed by this chapter, shall be made
by the head of the Federal agency from which the transfer was
made.''
(3) Collection of employee contributions.--Section 3102 of
such Code (relating to deduction of tax from wages) is
amended by adding at the end the following new subsection:
``(e) Special Rule for Certain Transferred Federal
Employees.--In the case of any payments of wages for service
performed in the employ of an international organization
pursuant to a transfer to which the provisions of section
3121(y) are applicable--
``(1) subsection (a) shall not apply,
``(2) the head of the Federal agency from which the
transfer was made shall separately include on the statement
required under section 6051--
``(A) the amount determined to be the amount of the wages
for such service, and
``(B) the amount of the tax imposed by section 3101 on such
payments, and
``(3) the tax imposed by section 3101 on such payments
shall be paid by the employee.''
(4) Exclusion from treatment as trade or business.--
Paragraph (2)(C) of section 1402(c) of such Code (defining
trade or business) is amended by adding at the end the
following: ``except service which constitutes `employment'
under section 3121(y),''.
(5) Conforming amendment.--Paragraph (15) of section
3121(b) of such Code is amended by inserting ``, except
service which constitutes `employment' under subsection (y)''
after ``organization''.
(b) Amendments to the Social Security Act.--
(1) In general.--Section 210 of the Social Security Act (42
U.S.C. 410) is amended by adding at the end the following new
subsection:
``service in the employ of international organizations by certain
transferred federal employees
``(r)(1) For purposes of this title, service performed in
the employ of an international organization by an individual
pursuant to a transfer of such individual to such
international organization pursuant to section 3582 of title
5, United States Code, shall constitute `employment' if--
``(A) immediately before such transfer, such individual
performed service with a Federal agency which constituted
`employment' as defined in subsection (a), and
``(B) such individual would be entitled, upon separation
from such international organization and proper application,
to reemployment with such Federal agency under such section
3582.
``(2) For purposes of this subsection:
``(A) The term `Federal agency' means an agency, as defined
in section 3581(1) of title 5, United States Code.
``(B) The term `international organization' has the meaning
provided such term by section 3581(3) of title 5, United
States Code.''
(2) Exclusion from treatment as trade or business.--Section
211(c)(2)(C) of such Act (42 U.S.C. 411(c)(2)(C)) is amended
by inserting before the semicolon the following ``, except
service which constitutes `employment' under section
210(r)''.
(3) Conforming amendment.--Section 210(a)(15) of such Act
(42 U.S.C. 410(a)(15)) is amended by inserting ``, except
service which constitutes `employment' under subsection (r)''
before the semicolon.
(c) Effective Date.--The amendments made by this section
shall apply with respect to service performed after the
calendar quarter following the calendar quarter in which the
date of the enactment of this Act occurs.
SEC. 320. EXTENSION OF THE FICA TAX EXEMPTION AND CERTAIN TAX
RULES TO INDIVIDUALS WHO ENTER THE UNITED
STATES UNDER A VISA ISSUED UNDER SECTION 101 OF
THE IMMIGRATION AND NATIONALITY ACT.
(a) Amendments to the Internal Revenue Code of 1986.--
(1) The following provisions of the Internal Revenue Code
of 1986 are each amended by striking ``(J), or (M)'' each
place it appears and inserting ``(J), (M), or (Q)'':
(A) Section 871(c).
(B) Section 1441(b).
(C) Section 3121(b)(19).
(D) Section 3231(e)(1).
(E) Section 3306(c)(19).
(2) Paragraph (3) of section 872(b) of such Code is amended
by striking ``(F) or (J)'' and inserting ``(F), (J), or
(Q)''.
(3) Paragraph (5) of section 7701(b) of such Code is
amended by striking ``subparagraph (J)'' in subparagraphs
(C)(i) and (D)(i)(II) and inserting ``subparagraph (J) or
(Q)''.
(b) Amendment to Social Security Act.--Paragraph (19) of
section 210(a) of the Social Security Act is amended by
striking ``(J), or (M)'' each place it appears and inserting
``(J), (M), or (Q)''.
(c) Effective Date.--The amendments made by this subsection
shall take effect with the calendar quarter following the
date of the enactment of this Act.
SEC. 321. TECHNICAL AND CLERICAL AMENDMENTS.
(a) Amendments to Title II of the Social Security Act.--
(1) Section 201(a) of the Social Security Act (42 U.S.C.
401(a)) is amended, in the matter following clause (4), by
striking ``and and'' and inserting ``and''.
(2) Section 202(d)(8)(D)(ii) of such Act (42 U.S.C.
402(d)(8)(D)(ii)) is amended by adding a period at the end,
and by adjusting the left hand margination thereof so as to
align with section 202(d)(8)(D)(i) of such Act.
(3) Section 202(q)(1)(A) of such Act (42 U.S.C.
402(q)(1)(A)) is amended by striking the dash at the end.
(4) Section 202(q)(9) of such Act (42 U.S.C. 402(q)(9)) is
amended, in the matter preceding subparagraph (A), by
striking ``parargaph'' and inserting ``paragraph''.
(5) Section 202(t)(4)(D) of such Act (42 U.S.C.
402(t)(4)(D)) is amended by inserting ``if the'' before
``Secretary'' the second and third places it appears.
(6) Clauses (i) and (ii) of section 203(f)(5)(C) of such
Act (42 U.S.C. 403(f)(5)(C)) are amended by adjusting the
left-hand margination thereof so as to align with clauses (i)
and (ii) of section 203(f)(5)(B) of such Act.
(7) Paragraph (3)(A) and paragraph (3)(B) of section 205(b)
of such Act (42 U.S.C. 405(b)) are amended by adjusting the
left-hand margination thereof so as to align with the matter
following section 205(b)(2)(C) of such Act.
(8) Section 205(c)(2)(B)(iii) of such Act (42 U.S.C.
405(c)(2)(B)(iii)) is amended by striking ``non-public'' and
inserting ``nonpublic''.
(9) Section 205(c)(2)(C) of such Act (42 U.S.C.
405(c)(2)(C)) is amended--
(A) by striking the clause (vii) added by section 2201(c)
of Public Law 101-624;
(B) by redesignating the clause (iii) added by section
2201(b)(3) of Public Law 101-624, clause (iv), clause (v),
clause (vi), and the clause (vii) added by section 1735(b) of
Public Law 101-624 as clause (iv), clause (v), clause (vi),
clause (vii), and clause (viii), respectively;
(C) in clause (v) (as redesignated), by striking
``subclause (I) of'', and by striking ``subclause (II) of
clause (i)'' and inserting ``clause (ii)''; and
(D) in clause (viii)(IV) (as redesignated), by inserting
``a social security account number or'' before ``a request
for''.
(10) The heading for section 205(j) of such Act (42 U.S.C.
405(j)) is amended to read as follows:
``Representative Payees''.
(11) The heading for section 205(s) of such Act (42 U.S.C.
405(s)) is amended to read as follows:
``Notice Requirements''.
(12) Section 208(c) of such Act (42 U.S.C. 408(c)) is
amended by striking ``subsection (g)'' and inserting
``subsection (a)(7)''.
(13) Section 210(a)(5)(B)(i)(V) of such Act (42 U.S.C.
410(a)(5)(B)(i)(V)) is amended by striking ``section
105(e)(2)'' and inserting ``section 104(e)(2)''.
(14) Section 211(a) of such Act (42 U.S.C. 411(a)) is
amended--
(A) in paragraph (13), by striking ``and'' at the end; and
(B) in paragraph (14), by striking the period and inserting
``; and''.
(15) Section 213(c) of such Act (42 U.S.C. 413(c)) is
amended by striking ``section'' the first place it appears
and inserting ``sections''.
(16) Section 215(a)(5)(B)(i) of such Act (42 U.S.C.
415(a)(5)(B)(i)) is amended by striking ``subsection'' the
second place it appears and inserting ``subsections''.
(17) Section 215(f)(7) of such Act (42 U.S.C. 415(f)(7)) is
amended by inserting a period after ``1990''.
(18) Subparagraph (F) of section 218(c)(6) of such Act (42
U.S.C. 418(c)(6)) is amended by adjusting the left-hand
margination thereof so as to align with section 218(c)(6)(E)
of such Act.
(19) Section 223(i) of such Act (42 U.S.C. 423(i)) is
amended by adding at the beginning the following heading:
``Limitation on Payments to Prisoners''.
(b) Related Amendments.--
(1) Section 603(b)(5)(A) of Public Law 101-649 (amending
section 202(n)(1) of the Social Security Act) (104 Stat.
5085) is amended by inserting ``under'' before ``paragraph
(1),'' and by striking ``(17), or (18)'' and inserting
``(17), (18), or (19)'', effective as if this paragraph were
included in such section 603(b)(5)(A).
(2) Section 10208(b)(1) of Public Law 101-239 (amending
section 230(b)(2)(A) of the Social Security Act) (103 Stat.
2477) is amended by striking ``230(b)(2)(A)'' and
``430(b)(2)(A)'' and inserting ``230(b)(2)'' and
``430(b)(2)'', respectively, effective as if this paragraph
were included in such section 10208(b)(1).
(c) Conforming, Clerical Amendments Updating, Without
Substantive Change, References in Title II of the Social
Security Act to the Internal Revenue Code.--
(1)(A)(i) Section 201(g)(1) of such Act (42 U.S.C.
401(g)(1)) is amended--
(I) in subparagraph (A)(i), by striking ``and subchapter
E'' and all that follows through ``1954'' and inserting ``and
chapters 2 and 21 of the Internal Revenue Code of 1986'';
(II) in subparagraph (A)(ii), by striking ``1954'' and
inserting ``1986'';
(III) in the matter in subparagraph (A) following clause
(ii), by striking ``subchapter E'' and all that follows
through ``1954.'' and inserting ``chapters 2 and 21 of the
Internal Revenue Code of 1986.'', and by striking ``1954
other'' and inserting ``1986 other''; and
(IV) in subparagraph (B), by striking ``1954'' each place
it appears and inserting ``1986''.
(ii) The amendments made by clause (i) shall apply only
with respect to periods beginning on or after the date of the
enactment of this Act.
(B)(i) Section 201(g)(2) of such Act (42 U.S.C. 401(g)(2))
is amended by striking ``section 3101(a)'' and all that
follows through ``1950.'' and inserting ``section 3101(a) of
the Internal Revenue Code of 1986 which are subject to refund
under section 6413(c) of such Code with respect to wages (as
defined in section 3121 of such Code).'', and by striking
``wages reported'' and all that follows through ``1954,'' and
inserting ``wages reported to the Secretary of the Treasury
or his delegate pursuant to subtitle F of such Code,''.
(ii) The amendments made by clause (i) shall apply only
with respect to wages paid on or after January 1, 1995.
(C) Section 201(g)(4) of such Act (42 U.S.C. 401(g)(4)) is
amended--
(i) by striking ``The Board of Trustees shall prescribe
before January 1, 1981, the method'' and inserting ``If at
any time or times the Boards of Trustees of such Trust Funds
deem such action advisable, they may modify the method
prescribed by such Boards'';
(ii) by striking ``1954'' and inserting ``1986''; and
(iii) by striking the last sentence.
(2) Section 202(v) of such Act (42 U.S.C. 402(v)) is
amended--
(A) in paragraph (1), by striking ``1954'' and inserting
``1986''; and
(B) in paragraph (3)(A), by inserting ``of the Internal
Revenue Code of 1986'' after ``3127''.
(3) Section 205(c)(5)(F)(i) of such Act (42 U.S.C.
405(c)(5)(F)(i)) is amended by inserting ``or the Internal
Revenue Code of 1986'' after ``1954''.
(4)(A) Section 209(a)(4)(A) of such Act (42 U.S.C.
409(a)(4)(A)) is amended by inserting ``or the Internal
Revenue Code of 1986'' after ``Internal Revenue Code of
1954''.
(B) Section 209(a) of such Act (42 U.S.C. 409(a)) is
amended--
(i) in subparagraphs (C) and (E) of paragraph (4),
(ii) in paragraph (5)(A),
(iii) in subparagraphs (A) and (B) of paragraph (14),
(iv) in paragraph (15),
(v) in paragraph (16), and
(vi) in paragraph (17),
by striking ``1954'' each place it appears and inserting
``1986''.
(C) Subsections (b), (f), (g), (i)(1), and (j) of section
209 of such Act (42 U.S.C. 409) are amended by striking
``1954'' each place it appears and inserting ``1986''.
(5) Section 211(a)(15) of such Act (42 U.S.C. 411(a)(15))
is amended by inserting ``of the Internal Revenue Code of
1986'' after ``section 162(m)''.
(6) Title II of such Act is further amended--
(A) in subsections (f)(5)(B)(ii) and (k) of section 203 (42
U.S.C. 403),
(B) in section 205(c)(1)(D)(i) (42 U.S.C. 405(c)(1)(D)(i)),
(C) in the matter in section 210(a) (42 U.S.C. 410(a))
preceding paragraph (1) and in paragraphs (8), (9), and (10)
of section 210(a),
(D) in subsections (p)(4) and (q) of section 210 (42 U.S.C.
410),
(E) in the matter in section 211(a) (42 U.S.C. 411(a))
preceding paragraph (1) and in paragraphs (3), (4), (6),
(10), (11), and (12) and clauses (iii) and (iv) of section
211(a),
(F) in the matter in section 211(c) (42 U.S.C. 411(c))
preceding paragraph (1), in paragraphs (3) and (6) of section
211(c), and in the matter following paragraph (6) of section
211(c),
(G) in subsections (d), (e), and (h)(1)(B) of section 211
(42 U.S.C. 411),
(H) in section 216(j) (42 U.S.C. 416(j)),
(I) in section 218(e)(3) (42 U.S.C. 418(e)(3)),
(J) in section 229(b) (42 U.S.C. 429(b)),
(K) in section 230(c) (42 U.S.C. 430(c)), and
(L) in section 232 (42 U.S.C. 432),
by striking ``1954'' each place it appears and inserting
``1986''.
(d) Rules of Construction.--
(1) The preceding provisions of this section shall be
construed only as technical and clerical corrections and as
reflecting the original intent of the provisions amended
thereby.
(2) Any reference in title II of the Social Security Act to
the Internal Revenue Code of 1986 shall be construed to
include a reference to the Internal Revenue Code of 1954 to
the extent necessary to carry out the provisions of paragraph
(1).
(e) Utilization of National Average Wage Index for Wage-
Based Adjustments.--
(1) Definition of national average wage index.--Section
209(k) of the Social Security Act (42 U.S.C. 409(k)) is
amended--
(A) by redesignating paragraph (2) as paragraph (3);
(B) in paragraph (3) (as redesignated), by striking
``paragraph (1)'' and inserting ``this subsection''; and
(C) by striking paragraph (1) and inserting the following
new paragraphs:
``(k)(1) For purposes of sections 203(f)(8)(B)(ii),
213(d)(2)(B), 215(a)(1)(B)(ii), 215(a)(1)(C)(ii),
215(a)(1)(D), 215(b)(3)(A)(ii), 215(i)(1)(E),
215(i)(2)(C)(ii), 224(f)(2)(B), and 230(b)(2) (and 230(b)(2)
as in effect immediately prior to the enactment of the Social
Security Amendments of 1977), the term `national average wage
index' for any particular calendar year means, subject to
regulations of the Secretary under paragraph (2), the average
of the total wages for such particular calendar year.
``(2) The Secretary shall prescribe regulations under which
the national average wage index for any calendar year shall
be computed--
``(A) on the basis of amounts reported to the Secretary of
the Treasury or his delegate for such year,
``(B) by disregarding the limitation on wages specified in
subsection (a)(1),
``(C) with respect to calendar years after 1990, by
incorporating deferred compensation amounts and factoring in
for such years the rate of change from year to year in such
amounts, in a manner consistent with the requirements of
section 10208 of the Omnibus Budget Reconciliation Act of
1989, and
``(D) with respect to calendar years before 1978, in a
manner consistent with the manner in which the average of the
total wages for each of such calendar years was determined as
provided by applicable law as in effect for such years.''.
(2) Conforming amendments.--
(A) Section 213(d)(2)(B) of such Act (42 U.S.C.
413(d)(2)(B)) is amended by striking ``deemed average total
wages'' and inserting ``national average wage index'', and by
striking ``the average of the total wages'' and all that
follows and inserting ``the national average wage index (as
so defined) for 1976,''.
(B) Section 215(a)(1)(B)(ii) of such Act (42 U.S.C.
415(a)(1)(B)(ii)) is amended--
(i) in subclause (I), by striking ``deemed average total
wages'' and inserting ``national average wage index''; and
(ii) in subclause (II), by striking ``the average of the
total wages'' and all that follows and inserting ``the
national average wage index (as so defined) for 1977.''.
(C) Section 215(a)(1)(C)(ii) of such Act (42 U.S.C.
415(a)(1)(C)(ii)) is amended by striking ``deemed average
total wages'' and inserting ``national average wage index''.
(D) Section 215(a)(1)(D) of such Act (42 U.S.C.
415(a)(1)(D)) is amended--
(i) by striking ``after 1978'';
(ii) by striking ``and the average of the total wages (as
described in subparagraph (B)(ii)(I))'' and inserting ``and
the national average wage index (as defined in section
209(k)(1))''; and
(iii) by striking the last sentence.
(E) Section 215(b)(3)(A)(ii) of such Act (42 U.S.C.
415(b)(3)(A)(ii)) is amended by striking ``deemed average
total wages'' each place it appears and inserting ``national
average wage index''.
(F) Section 215(i)(1) of such Act (42 U.S.C. 415(i)(1)) is
amended--
(i) in subparagraph (E), by striking ``SSA average wage
index'' and inserting ``national average wage index (as
defined in section 209(k)(1))''; and
(ii) by striking subparagraph (G) and redesignating
subparagraph (H) as subparagraph (G).
(G) Section 215(i)(2)(C)(ii) of such Act (42 U.S.C.
415(i)(1)(C)(ii)) is amended to read as follows:
``(ii) The Secretary shall determine and promulgate the
OASDI fund ratio for the current calendar year on or before
November 1 of the current calendar year, based upon the most
recent data then available. The Secretary shall include a
statement of the fund ratio and the national average wage
index (as defined in section 209(k)(1)) and a statement of
the effect such ratio and the level of such index may have
upon benefit increases under this subsection in any
notification made under clause (i) and any determination
published under subparagraph (D).''.
(H) Section 224(f)(2) of such Act (42 U.S.C. 424a(f)(2)) is
amended--
(i) in subparagraph (A), by adding ``and'' at the end;
(ii) by striking subparagraph (C); and
(iii) by striking subparagraph (B) and inserting the
following:
``(B) the ratio of (i) the national average wage index (as
defined in section 209(k)(1)) for the calendar year before
the year in which such redetermination is made to (ii) the
national average wage index (as so defined) for the calendar
year before the year in which the reduction was first
computed (but not counting any reduction made in benefits for
a previous period of disability).''.
(f) Technical Corrections Related to OASDI in the Omnibus
Budget Reconciliation Act of 1990.--
(1) Amendments related to provisions in section 5103(b)
relating to disabled widows.--Section 223(f)(2) of the Social
Security Act (42 U.S.C. 423(f)(2)) is amended--
(A) in subparagraph (A), by striking ``(in a case to which
clause (ii)(II) does not apply)''; and
(B) by striking subparagraph (B)(ii) and inserting the
following:
``(ii) the individual is now able to engage in substantial
gainful activity; or''.
(2) Amendments related to provisions in section 5105(d)
relating to representative payees.--
(A) Title ii amendments.--Section 5105(d)(1)(A) of the
Omnibus Budget Reconciliation Act of 1990 (Public Law 101-
508) is amended--
(i) by striking ``Section 205(j)(5)'' and inserting
``Section 205(j)(6)''; and
(ii) by redesignating the paragraph (5) as amended thereby
as paragraph (6).
(B) Title xvi amendments.--Section 1631(a)(2) of the Social
Security Act (42 U.S.C. 1383(a)(2)) is amended--
(i) by redesignating subparagraphs (E) and (F) as
subparagraphs (F) and (G), respectively; and
(ii) by inserting after subparagraph (D) the following:
``(E) Restitution.--In cases where the negligent failure of
the Secretary to investigate or monitor a representative
payee results in misuse of benefits by the representative
payee, the Secretary shall make payment to the beneficiary or
the beneficiary's representative payee of an amount equal to
such misused benefits. The Secretary shall make a good faith
effort to obtain restitution from the terminated
representative payee.''.
(3) Amendments related to provisions in section 5106
relating to coordination of rules under titles ii and xvi
governing fees for representatives of claimants with
entitlements under both titles.--
(A) Calculation of fee of claimant's representative based
on amount of past-due supplemental security income benefits
after application of windfall offset provision.--Section
1631(d)(2)(A)(i) of the Social Security Act (as amended by
section 5106(a)(2) of the Omnibus Budget Reconciliation Act
of 1990) (42 U.S.C. 1383(d)(2)(A)(i)) is amended to read as
follows:
``(i) by substituting, in subparagraphs (A)(ii)(I) and
(C)(i), the phrase `(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 parenthetical phrase
contained therein; and''.
(B) Calculation of past-due benefits for purposes of
determining attorney fees in judicial proceedings.--
(i) In general.--Section 206(b)(1) of such Act (42 U.S.C.
406(b)(1)) is amended--
(I) by inserting ``(A)'' after ``(b)(1)''; and
(II) by adding at the end the following new subparagraph:
``(B) For purposes of this paragraph--
``(i) the term `past-due benefits' excludes any benefits
with respect to which payment has been continued pursuant to
subsection (g) or (h) of section 223, and
``(ii) amounts of past-due benefits shall be determined
before any applicable reduction under section 1127(a).''.
(ii) Protection from offsetting ssi benefits.--The last
sentence of section 1127(a) of such Act (as added by section
5106(b) of the Omnibus Budget Reconciliation Act of 1990) (42
U.S.C. 1320a-6(a)) is amended by striking ``section
206(a)(4)'' and inserting ``subsection (a)(4) or (b) of
section 206''.
(4) Application of single dollar amount ceiling to
concurrent claims under titles ii and xvi.--
(A) In general.--Section 206(a)(2) of such Act (as amended
by section 5106(a)(1) of the Omnibus Budget Reconciliation
Act of 1990) (42 U.S.C. 406(a)(2)) is amended--
(i) by redesignating subparagraph (C) as subparagraph (D);
and
(ii) by inserting after subparagraph (B) the following new
subparagraph:
``(C) In any case involving--
``(i) an agreement described in subparagraph (A) with any
person relating to both a claim of entitlement to past-due
benefits under this title and a claim of entitlement to past-
due benefits under title XVI, and
``(ii) a favorable determination made by the Secretary with
respect to both such claims,
the Secretary may approve such agreement only if the total
fee or fees specified in such agreement does not exceed, in
the aggregate, the dollar amount in effect under subparagraph
(A)(ii)(II).''.
(B) Conforming amendment.--Section 206(a)(3)(A) of such Act
(as amended by section 5106(a)(1) of the Omnibus Budget
Reconciliation Act of 1990) (42 U.S.C. 406(a)(3)(A)) is
amended by striking ``paragraph (2)(C)'' and inserting
``paragraph (2)(D)''.
(5) Effective date.--Each amendment made by this subsection
shall take effect as if included in the provisions of the
Omnibus Budget Reconciliation Act of 1990 to which such
amendment relates, except that the amendments made by
paragraph (3)(B) shall apply with respect to favorable
judgments made after 180 days after the date of the enactment
of this Act.
(g) Elimination of Rounding Distortion in the Calculation
of the Old-Age, Survivors, and Disability Insurance
Contribution and Benefit Base and the Earnings Test Exempt
Amounts.--
(1) Adjustment of oasdi contribution and benefit base.--
(A) In general.--Section 230(b) of the Social Security Act
(42 U.S.C. 430(b)) is amended by striking paragraphs (1) and
(2) and inserting the following:
``(1) $60,600, and
``(2) the ratio of (A) the national average wage index (as
defined in section 209(k)(1)) for the calendar year before
the calendar year in which the determination under subsection
(a) is made to (B) the national average wage index (as so
defined) for 1992,''.
(B) Conforming amendment relating to applicable prior
law.--Section 230(d) of such Act (42 U.S.C. 430(d)) is
amended by striking ``(except that'' and all that follows
through the end and inserting ``(except that, for purposes of
subsection (b) of such section 230 as so in effect, the
reference to the contribution and benefit base in paragraph
(1) of such subsection (b) shall be deemed a reference to an
amount equal to $45,000, each reference in paragraph (2) of
such subsection (b) to the average of the wages of all
employees as reported to the Secretary of the Treasury shall
be deemed a reference to the national average wage index (as
defined in section 209(k)(1)), the reference to a preceding
calendar year in paragraph (2)(A) of such subsection (b)
shall be deemed a reference to the calendar year before the
calendar year in which the determination under subsection (a)
of such section 230 is made, and the reference to a calendar
year in paragraph (2)(B) of such subsection (b) shall be
deemed a reference to 1992).''.
(C) Adjustment of contribution and benefit base applicable
in determining years of coverage for purposes of special
minimum primary insurance amount.--Section 215(a)(1)(C)(ii)
of such Act is amended by striking ``(except that'' and all
that follows through the end and inserting ``(except that,
for purposes of subsection (b) of such section 230 as so in
effect, the reference to the contribution and benefit base in
paragraph (1) of such subsection (b) shall be deemed a
reference to an amount equal to $45,000, each reference in
paragraph (2) of such subsection (b) to the average of the
wages of all employees as reported to the Secretary of the
Treasury shall be deemed a reference to the national average
wage index (as defined in section 209(k)(1)), the reference
to a preceding calendar year in paragraph (2)(A) of such
subsection (b) shall be deemed a reference to the calendar
year before the calendar year in which the determination
under subsection (a) of such section 230 is made, and the
reference to a calendar year in paragraph (2)(B) of such
subsection (b) shall be deemed a reference to 1992).''.
(2) Adjustment of earnings test exempt amount.--Section
203(f)(8)(B)(ii) of the Social Security Act (42 U.S.C.
403(f)(8)(B)(ii)) is amended to read as follows:
``(ii) the product of the corresponding exempt amount which
is in effect with respect to months in the taxable year
ending after 1993 and before 1995, and the ratio of--
``(I) the national average wage index (as defined in
section 209(k)(1)) for the calendar year before the calendar
year in which the determination under subparagraph (A) is
made, to
``(II) the national average wage index (as so defined) for
1992,
with such product, if not a multiple of $10, being rounded to
the next higher multiple of $10 where such product is a
multiple of $5 but not of $10 and to the nearest multiple of
$10 in any other case.''.
(3) Effective dates.--
(A) The amendments made by paragraph (1) shall be effective
with respect to the determination of the contribution and
benefit base for years after 1994.
(B) The amendment made by paragraph (2) shall be effective
with respect to the determination of the exempt amounts
applicable to any taxable year ending after 1994.
(h) Technical Amendments to Title XVI.--(1) Section 1631 of
the Social Security Act (42 U.S.C. 1383) is amended--
(A) in the 1st subsection (n), by striking ``subsection''
and inserting ``title''; and
(B) by redesignating the 2nd subsection (n) as subsection
(o).
(2) Section 1613(a) of such Act (42 U.S.C. 1382b(a)) is
amended--
(A) by striking ``and'' at the end of paragraph (9);
(B) by striking the period at the end of the 1st paragraph
(10) and inserting ``; and''; and
(C) by redesignating the 2nd paragraph (10) as paragraph
(11).
(3) Effective date.--The amendments made by this subsection
shall take effect on the date of the enactment of this Act.
And the Senate agree to the same.
Sam Gibbons,
Dan Rostenkowski,
J.J. Pickle,
Andrew Jacobs, Jr.,
Harold Ford,
Bill Archer,
Jim Bunning,
Rick Santorum,
Managers on the Part of the House.
Daniel P. Moynihan,
Max Baucus,
John Breaux,
Bob Packwood,
Bob Dole,
Managers on the Part of the Senate.
JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE
The managers on the part of the House and the Senate at the
conference on the disagreeing votes of the two Houses on the
amendment of the Senate to the bill (H.R. 4277) to establish
the Social Security Administration as an independent agency
and to make other improvements in the old-age, survivors, and
disability insurance program, submit the following joint
statement to the House and the Senate in explanation of the
effect of the action agreed upon by the managers and
recommended in the accompanying conference report:
The Senate amendment struck all of the House bill after the
enacting clause and inserted a substitute text.
The House recedes from its disagreement to the amendment of
the Senate with an amendment that is a substitute for the
House bill and the Senate amendment. The differences between
the House bill, the Senate amendment, and the substitute
agreed to in conference are noted below, except for clerical
corrections, conforming changes made necessary by agreements
reached by the conferees, and minor drafting and clerical
changes.
1. Establishment of the Social Security Administration as an
Independent Agency
(Sec. 101-110 of the House bill, secs. 101-204 of the Senate amendment,
and secs. 101-110 of the conference agreement)
a. Status of Agency
Present law
The Social Security Administration (SSA) is a component of
the Department of Health and Human Services (HHS).
House bill
SSA would be made an independent agency in the executive
branch of the Federal government, with responsibility for
administration of the Old-Age, Survivors, and Disability
Insurance (OASDI) and Supplemental Security Income (SSI)
programs.
Senate amendment
Same as House provision.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment, with amendments providing that SSA would
continue to perform its current functions in administering
the Coal Industry Retirees Health Benefits Act and Part B of
the Black Lung Benefits Act.
b. Agency Leadership and Management
Present law
The Secretary of HHS has responsibility for administration
of the OASDI and SSI programs. Administration of these
programs has been delegated to the Commissioner of Social
Security. The Commissioner is appointed by the President with
the advice and consent of the Senate, but reports to the
Secretary.
House bill
SSA would be governed by a three-member, full-time Board,
appointed by the President with the advice and consent of the
Senate. The Board members would serve 6-year terms, with no
more than 2 members being from the same political party.
Board members would be chosen on the basis of their
integrity, impartiality, and good judgment, and would be
individuals who, by reason of education, experience, and
attainments, are exceptionally qualified to perform the
duties of the Board. Board members could be removed from
office by the President only pursuant to a finding of neglect
of duty or malfeasance in office. The terms of the first
members would expire after two, four and six years.
Recommendations for persons to serve on the Board would be
made by the Chairman of the House Committee on Ways and Means
and the Senate Committee on Finance. A member could, at the
request of the President, serve for up to a year after the
member's term expires until a successor has taken office. A
member could be appointed for additional terms.
The President would appoint one of the members to be a
chairperson of the Board for a 4-year term. The chairperson
or two members could call a meeting of the Board with any two
members constituting a quorum. Any member alone would be
permitted to hold a hearing.
Each member of the Board would be compensated at the rate
provided in level II of the Executive Schedule. No member
would be permitted to engage in any other business, vocation,
profession, or employment.
The Board would:
Govern OASDI and SSI by regulation;
Establish the agency and oversee its efficient and
effective operation;
Establish policy and devise long-range plans for the
agency;
Appoint an Executive Director to act as the agency's chief
operating officer;
Constitute three members of a new seven-member Board of
Trustees of the Social Security Trust Funds, with the
chairperson of the agency's Board serving as chairperson of
the Board of Trustees (the Secretary of Labor would be
dropped as a member of the Board of Trustees);
Prepare an annual budget, which would be presented by the
President to Congress without revision, together with the
President's annual budget for the agency;
Study and make recommendations to the Congress and
President on the most effective methods of providing economic
security through social insurance, SSI, and related programs,
as well as on matters related to OASDI and SSI
administration;
Provide the Congress and President with ongoing actuarial
and other analyses; and
Conduct policy analysis and research.
The Board would be authorized to prescribe rules and
regulations. It would also be authorized to establish, alter,
consolidate, or discontinue organizational units and
components of the agency (other than those provided by
statute). Further, it would be permitted to assign duties and
delegate (or authorize successive redelegations of) authority
to act and to render decisions to such officers and employees
as it deems necessary.
Senate amendment
SSA would be governed by a Commissioner appointed by the
President, with the advice and consent of the Senate, for a
4-year term coinciding with the term of the President (or
until the appointment of a successor). The Commissioner would
be compensated at the rate for level I of the Executive
Schedule (equivalent to Cabinet officer pay). The
Commissioner would be responsible for the exercise of all
powers and the discharge of all duties of SSA, have authority
and control over all personnel and activities of the agency,
and serve as a member of the 5-member Board of Trustees.
The President would be required to appoint a Commissioner
within 60 days of the enactment. Upon such appointment and
confirmation by the Senate, the Commissioner appointed under
this title would assume the duties of the HHS Commissioner of
Social Security until SSA is established as an independent
agency.
The Commissioner would be authorized to prescribe rules and
regulations; establish, alter, consolidate, or discontinue
organizational units and components of the agency (except for
those prescribed by law); and assign duties, and delegate, or
authorize successive redelegations of, authority to act and
to render decisions, to such officers and employees as the
Commissioner may find necessary.
The Commissioner and the Secretary of Health and Human
Services would be directed to consult with one another on an
on-going basis to assure: (1) the coordination of the Social
Security, SSI, and Medicare and Medicaid programs and (2)
that adequate information concerning Medicare and Medicaid
benefits would be available to the public.
Conference agreement
The conference agreement follows the Senate amendment,
modified to provide that the Commissioner would serve a fixed
six-year term, except that the initial term of office would
terminate January 19, 2001. As in the case of the Board
members in the House bill, the Commissioner could be removed
from office by the President only pursuant to a finding of
neglect of duty or malfeasance in office.
In providing that a single administrator, rather than a
bipartisan board, will head the independent agency, the
conferees place high priority on management efficiency, which
they see as essential in enabling the independent SSA to
address the problems that confront it. At the same time, the
conferees are concerned by the high rate of turnover, and
resulting instability, that has characterized SSA's top
management in recent years. A number of problems in service
delivery associated with this instability has been documented
in studies by the General Accounting Office and in hearings
by the House Committee on Ways and Means and the Senate
Committee on Finance. A description of these studies and
hearings is contained in both Committees' reports on this
legislation.
The conferees expect that the key features of SSA's
leadership structure as established in the conference
agreement--i.e., independent status, a six-year term and the
limitation on removal by the President, and a bipartisan
advisory board--will be effective in assuring that policy
errors resulting from inappropriate influence from outside
the agency such as those occurring in the early 1980s do not
recur in the future.
(1) Board of Trustees
Present law
The Board of Trustees of the Federal Old-Age and Survivors
Insurance and Disability Insurance Trust Funds consists of
the Secretary of the Treasury, the Secretary of Labor, the
Secretary of Health and Human Services, and two public
trustees. The Commissioner of Social Security serves as the
Secretary of the Board.
House bill
The provision would expand the Board of Trustees and alter
its membership. As restructured, the Board would consist of
the 3 members of the independent agency's board of directors,
the Secretary of the Treasury, the Secretary of Health and
Human Services, and the two public trustees. the Secretary of
Labor would be dropped from the Board. Also, the chairperson
of SSA's board of directors would serve as the chairperson of
the Board of Trustees. The Executive Director would serve as
the Secretary of the Board.
Senate amendment
The Commissioner of the independent agency would serve as a
member of the Board of Trustees, and the Secretary of Labor
would be dropped from the Board. The Deputy Commissioner
would serve as the Secretary of the Board.
Conference agreement
The conference agreement follows the Senate amendment, with
an amendment providing that the Secretary of Labor would
continue to serve as a member of the Board.
(2) SSA Budget
Present law
SSA's annual budget request is submitted to Congress by the
President, as part of his proposal for the overall budget for
the executive branch.
House bill
SSA's board of directors would be required to prepare an
annual budget for the agency, which would be presented by the
President to Congress without revision, together with the
President's annual budget for the agency.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill, except
that the budget would be prepared and forwarded to the
President by the Commissioner, rather than the Board.
(3) Advisory Board
Present law
No provision.
House bill
No provision.
Senate amendment
A 7-member part-time Advisory Board would be appointed for
6-year terms, made up as follows: 3 appointed by the
President (no more than 1 from the same political party); 2
each (no more than 1 from the same political party) by the
Speaker of the House (in consultation with the Chairman and
Ranking Minority Member of the Committee on Ways and Means)
and the President pro tempore of the Senate (in consultation
with the Chairman and Ranking Minority member of the
Committee on Finance). Presidential appointees would be
subject to Senate confirmation. Board members would serve
staggered terms. The chairman of the Board would be appointed
by the President for a 4-year term, coincident with the term
of the President, or until the designation of a successor.
The Board would meet at least 6 times each year and generally
would be responsible for giving advice on policies related to
the OASDI and SSI programs.
Compensation of members would be set at a rate equal to 25
percent of the rate for level III of the Executive Schedule
(in addition, on meeting days compensation would be
equivalent to that of the daily rate of level III of the
Executive Schedule). Other benefits (except for health
benefits) would not accrue. The Board would be required to
appoint a staff director (paid at a rate equivalent to a rate
for the Senior Executive Service) and would be authorized to
hire necessary staff. The Board would be exempt from the
provisions of the Federal Advisory Committee Act.
Specific functions of the Board would include:
Analyzing the nation's retirement and disability system and
making recommendations with respect to how the OASDI program
and SSI program, supported by other public and private
systems, can most effectively assure economic security;
Studying and making recommendations relating to the
coordination of programs that provide health security with
the OASDI and SSI programs and with other public and private
systems;
Making recommendations to the President and to the Congress
with respect to policies that will ensure the solvency of the
OASDI program, both in the short-term and long-term;
Making recommendations to the President of candidates to
consider in selecting nominees for the position of
Commissioner and Deputy Commissioner;
Reviewing and assessing the quality of service that the
Administration provides to the public;
Reviewing and making recommendations with respect to
policies and regulations regarding the OASDI and SSI
programs;
Increasing public understanding of the Social Security
system;
In consultation with the Commissioner, reviewing the
development and implementation of a long-range research and
program evaluation plan for the Administration;
Reviewing and assessing any major studies of Social
Security that may come to the attention of the Board; and
Conducting such other reviews and assessments as the Board
determines to the appropriate.
Conference agreement
The conference agreement generally follows the Senate
amendment, except that Advisory Board members would serve
fixed terms, meet at least four times a year (four members,
not more than three from the same political party, would
constitute a quorum), and serve without compensation, except
that, 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.
Specific functions of the Board include:
Analyzing the nation's retirement and disability systems
and making recommendations with respect to how the OASDI
program and SSI program, supported by other public and
private systems, can most effectively assure economic
security;
Studying and making recommendations relating to the
coordination of programs that provide health security with
the OASDI and SSI programs and with other public and private
systems;
Making recommendations to the President and to the Congress
with respect to policies that will ensure the solvency of the
OASDI program, both in the short-term and the long term;
Making recommendations with respect to the quality of
service that the Administration provides to the public;
Making recommendations with respect to policies and
regulations regarding the OASDI and SSI programs;
Increasing public understanding of the social security
system;
Making recommendations with respect to a long-range
research and program evaluation plan for the Administration;
Reviewing and assessing any major studies of social
security that may come to the attention of the Board; and
Making recommendations with respect to such other matters
as the Board determines to be appropriate.
In general, it is expected that the scope of the Advisory
Board would be broadly focused, as indicated by its statutory
mandate. This would be in contrast to the focus of recent
Advisory Councils, which have tended to focus on specific
aspects of the program. While the Advisory Board is required
to review and assess the quality of service to the public
provided by the Administration, the conferees expect that the
performance of this or any other duty shall not serve as a
basis for the Advisory Board to become involved in the day-
to-day operation or management of the agency. Moreover, the
conferees do not see the Board's role in evaluating SSA's
policies and regulations as extending to the Board any
special status with respect to the requirements and
procedures related to the Administrative Procedures Act.
While the Board will appoint a staff director and hire
required clerical support personnel, any additional staff
required by the Board will be provided by the Commissioner of
Social Security, who will detail employees to the Board, as
agreed by the Commissioner and the Board. It is the intention
of the conferees that the Board's staff director and clerical
support staff not fall under the cap imposed by the
conference agreement on positions that may be exempted from
the competitive service at SSA.
To carry out its duties, the Advisory Board must have
access to the records of the Social Security Administration.
Therefore, it is expected that SSA will furnish information
requested by the Advisory Board that, in the Board's
judgment, is required for the performance of its duties.
The conferees believe that it is important to emphasize
that the Board is advisory in nature, and that its members
will meet on a part-time basis rather than serve as a
standing body. It is expected that the Commissioner will
consider the advice of the Board when formulating agency
policy. The conferees anticipate that the Board will be
effective in enhancing public confidence in the Social
Security system. They believe that the Board's independent
status and bipartisan membership make it especially well-
suited for this important task.
(4) Executive Director
Present law
No provision.
House bill
An Executive Director would be appointed by the Board to
serve as the agency's chief operating officer for a 4-year
term. The individual would be permitted to serve up to one
additional year until a successor had taken office (at the
request of the chairperson of the Board). The Board would be
permitted to appoint the Executive Director for additional
terms. An Executive Director could be removed from office
before completion of his or her term only for cause found by
the Board. Compensation would be set at the rate provided in
level II of the Executive Schedule.
The Executive Director would:
Be the chief operating officer responsible for
administration;
Maintain an efficient and effective administrative
structure;
Implement the long-term plans of the Board;
Report annually to the Board on the program costs of OASDI
and SSI; make annual budgetary recommendations for the
administrative costs of the agency and defend such
recommendations before the board;
Advise the Board and Congress of effects on administration
of proposed legislative changes;
Serve as Secretary of the Board of Trustees (for OASDI);
Report to the Board in December of each year, for
transmittal to Congress; on administrative endeavors and
accomplishments; and
Carry out any additional duties assigned by the Board.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the Senate amendment
(i.e., no provision).
c. Deputy Commissioner of Social Security
Present law
Under current SSA practice, there are six deputy
commissioners (for operations; programs; finance, assessment
and management; policy and external affairs; systems; and
human resources). None of these is a statutory position. In
addition, a non-statutory Principal Deputy Commissioner is
designated to serve as Acting Commissioner in the absence of
the Commissioner.
House bill
A Deputy Director of Social Security would be appointed by,
and serve at the pleasure of, the Executive Director.
The Deputy Director would perform such duties and exercise
such powers as are assigned by the Executive Director, and
serve as Acting Executive Director during the absence or
disability of the Executive Director. The Deputy Director
would also serve as Acting Executive Director in the event of
a vacancy in the office of Executive Director unless the
Board designates another official to fill the post. He or she
would be compensated at the rate provided in level III of the
Executive Schedule.
Senate amendment
A Deputy Commissioner would be appointed by the President,
with the advice and consent of the Senate, for a 4-year term
coincident with the term of the Commissioner or until
appointment of a qualified successor.
The Deputy Commissioner would perform such duties and
exercise such powers as are assigned by the Commissioner, and
serve as Acting Commissioner during the absence or disability
of the Commissioner (or vacancy of the office) unless the
President designates someone else. He or she would be
compensated at the rate provided for level II of the
Executive Schedule. In addition, the Deputy Commissioner
would serve as the Secretary of the Board of Trustees of the
OASDI Trust Funds.
Conference agreement
The conference agreement follows the Senate amendment,
except that the Deputy Commissioner would serve a six-year,
rather than a four-year, term. The Deputy Commissioner's term
would coincide with that of the Commissioner.
d. General Counsel
Present law
SSA receives legal services from the Office of General
Counsel of HHS through a component headed by a Chief Counsel
for Social Security.
House bill
A General Counsel would be appointed by and serve at the
pleasure of the Board as SSA's principal legal officer. He or
she would be compensated at the rate provided in level IV of
the Executive Schedule.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the Senate amendment
(i.e., no provision). The conferees anticipate that the
agency officers will include a General Counsel.
e. Inspector General
Present law
The Inspector General of HHS is responsible for oversight
of SSA
House bill
An Office of Inspector General would be created within SSA,
to be headed by an Inspector General appointed in accordance
with the Inspector General Act of 1978. He or she would be
compensated at the rate provided in level IV of the Executive
Schedule.
Senate amendment
The Inspector General Act of 1978 would be amended to
authorize establishment, under that act, of an Inspector
General of SSA.
Conference agreement
The conference agreement follows the Senate amendment, with
an amendment providing that the Inspector General would be
compensated at the rate provided in level IV of the Executive
Schedule.
In addition, the conference agreement provides the
Commissioner of the independent agency with authority to
appoint an interim Inspector General to serve for up to 60
days. If the Commissioner does not make this appointment, the
Inspector General of HHS may, if requested by the
Commissioner, serve as SSA's Inspector General (while
continuing to serve as the Inspector General of HHS) until an
Inspector General is appointed for the independent agency.
The bill does not establish in the Administration any
positions other than the Commissioner, Deputy Commissioner,
Inspector General and Chief Financial Officer. The conferees
believe that it is preferable to give the Commissioner the
authority to determine the most efficient administrative
organization for an independent SSA. However, the conferees
believe that an essential element in any administrative
organization for SSA is the position of Chief Actuary. While
such a position is not mandated legislatively, it is expected
that SSA will continue to have a Chief Actuary, and that the
Chief Actuary will remain available to consult with the
Chairman of the Senate Committee on Finance and the Chairman
of the House Ways and Means Committee.
The conferees wish to emphasize the very important role of
the Office of the Actuary in assessing the financial
condition of the Social Security trust funds and in
developing estimates of the financial effects of potential
legislative and administrative changes in the Social Security
program. The Office of the Actuary has a unique role within
the agency in that it serves both the Administration and the
Congress. While the conferees expect that the Chief Actuary
will report to the Commissioner, this office often must work
with the committees of jurisdiction in the development of
legislation.
Beginning with the appointment of the first Chief Actuary
in 1936, the tradition was for a close and confidential
working relationship between the individual who held that
office and the committees of jurisdiction in the Congress, a
relationship which the Committees value highly. It is
important to emphasize that both the Senate Committee on
Finance and the House Committee on Ways and Means rely on
their ability to seek estimates on a confidential basis from
the Chief Actuary, especially when developing new
legislation. Thus, the independence of the Office of the
Chief Actuary with respect to providing assistance to the
Congress is vital in maintaining a trusting and useful
relationship.
The conferees believe that it is important for the Office
of the Chief Actuary to receive adequate staffing and support
from the agency. In this regard, the conferees are concerned
that fewer actuarial studies and notes have been published in
recent years and that various informal reports and actuarial
memoranda that were available in the past are no longer
circulated. The conferees consider independent analyses by
the Office of the Chief Actuary to be consistent with the
general role and responsibilities of the actuarial
profession, and in the past have found these analyses to be
very helpful in understanding the factors underlying
estimates and trends in the Social Security program.
With respect to adequate staffing, the conferees wish to
note that it is essential that the strength of the Office of
the Actuary be maintained. The conferees strongly urge that
the actuarial staff at SSA be enhanced on an ongoing basis.
Toward that end, the conferees believe that, in formulating a
comprehensive workforce plan, the Commissioner of Social
Security should carefully evaluate the needs of the Office of
the Actuary and consider the need for additional Senior
Executive Service positions in this office.
Although the conferees have not legislatively established a
position of Chief Actuary in the independent agency, the
conferees recognize the important role of the Office of the
Chief Actuary and expect that in the independent SSA the
office will be permitted to function with a high degree of
independence and professionalism.
f. Chief Financial Officer
Present law
No provision.
House bill
No provision.
Senate amendment
A Chief Financial Officer would be appointed by the
Commissioner in accordance with amendments to Title 31 of the
U.S. Code made by the Chief Financial Officers Act of 1990.
Conference agreement
The conference agreement follows the Senate Amendment.
g. Beneficiary Ombudsman
Present law
No formal position of this nature exists within SSA.
House bill
An Office of Beneficiary Ombudsman, headed by a beneficiary
ombudsman appointed by the Board, would be created within
SSA. The term of office would be 5 years, except for the
first ombudsman whose term would end September 30, 2000. The
ombudsman would be permitted to serve up to one additional
year until a successor had taken office (at the request of
the chairperson of the Board), and could be appointed for
additional terms. The ombudsman could be removed from office
before completion of his or her term only for cause found by
the Board. Compensation would be set at the rate provided in
level V of the Executive Schedule.
The beneficiary ombudsman would:
Represent the interests and concerns of program
beneficiaries within SSA's decision-making process;
Review SSA's policies and procedures for possible adverse
effects on beneficiaries;
Recommend within SSA's decision-making process changes in
policies which have caused problems for beneficiaries;
Help resolve problems for individual beneficiaries in
unusual or difficult circumstances, as determined by the
Administration; and
Represent the views of beneficiaries within SSA's decision-
making process in the design of forms and issuance of
instructions.
The Board would assure that the Office of Beneficiary
Ombudsman is sufficiently staffed in regional offices,
program centers, and the central office.
The annual report of the Board would include a description
of the activities of the beneficiary ombudsman.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the Senate amendment
(i.e., no provision).
h. Office of Chief Administrative Law Judge
Present law
The Social Security Act requires SSA to conduct hearings to
consider appeals of SSA decisions by beneficiaries and
applicants for benefits. These hearings are conducted by
administrative law judges (ALJs). Although not required by
law, the agency follows the procedures of the Administrative
Procedures Act (APA) with respect to the appointment of ALJs
and the conduct of hearings. The ALJs are located
organizationally within the Office of Hearings and Appeals,
headed by an associate commissioner who reports to the deputy
commissioner for programs.
House bill
An Office of Chief Administrative Law Judge, headed by a
chief ALJ appointed by the Board, would be created within SSA
to administer the affairs of SSA's ALJs in a manner so as to
ensure that hearings and other business are conducted by the
ALJs in accordance with applicable law and regulations. The
chief ALJ would report directly to the Board.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the Senate amendment
(i.e., no provision).
i. Interim Authority of the Commissioner
Present law
No provision.
House bill
The President would be required to nominate appointments to
the Board not later than April 1, 1995. If all members of the
Board are not in office by October 1, 1995, the person then
serving as Commissioner of Social Security would continue to
serve as head of SSA within HHS, and serve as the head of the
newly-established SSA, assuming the powers and duties of the
Board and Executive Director.
Senate amendment
No provision.
Conference agreement
The conference agreement generally follows the House bill
by providing that the existing Commissioner of Social
Security in the Department of HHS would continue to serve in
that post until a Commissioner is nominated by the President
pursuant to this statute and is confirmed by the Senate.
Nomination by the President must occur within 60 days of
enactment. Upon confirmation by the Senate (whether before or
after the general effective date of this statute), the
President's nominee would assume the position of Commissioner
of Social Security.
In the event that, as of March 31, 1995, the President has
not nominated an individual for appointment to the Office of
Commissioner of Social Security, the individual serving as
Commissioner of Social Security in the Department of Health
and Human Services shall become the Acting Commissioner of
Social Security in the independent SSA.
j. Personnel; Budgetary Matters; Facilities and Procurement; Seal of
Office
(1) Appointment of Employees by the Commissioner
Present law
No provision.
House bill
The Board would appoint additional officers and employees
as it deems necessary (with compensation fixed in accordance
with title 5 of the U.S. Code, except as otherwise provided
by law), and could procure services of experts and
consultants.
Senate amendment
Identical provision.
Conference agreement
The conference agreement follows the House bill and the
Senate amendment.
(2) Allotment of Senior Executive Service (SES) Employees
Present law
No provision.
House bill
The Director of the Office of Personnel Management (OPM)
would be required to give SSA an allotment of Senior
Executive Service (SES) positions that exceeds the number
authorized for SSA immediately before enactment of this Act
to the extent a larger number is specified in a comprehensive
work plan developed by the Board. The total number of such
positions could not be reduced at any time below the number
SSA held immediately before enactment of this Act.
Senate amendment
The Senate amendment includes the same provision, except
that the number of SES positions allotted to SSA must be
``substantially'' greater than the number allotted to SSA
before enactment of this Act.
Conference agreement
The conference agreement follows the Senate amendment, with
an amendment requiring the Director of OPM to inform the
Committee on Ways and Means and the Committee on Finance of
the number of SES positions allotted to SSA within 60 days of
the transmittal of the comprehensive work plan to the
Director of OPM.
In agreeing to this provision, the conferees wish to note
that, at present, the number of SES positions in SSA is low
in proportion to the agency's responsibilities and the size
of the agency's staff. The conferees expect that SSA's
allotment will increase as an independent agency,
commensurate with the agency's increased stature and
responsibilities.
(3) Executive Level Positions
Present law
No provision.
House bill
In addition to the 8 Executive Schedule positions
established by this Act, SSA also would be authorized 6
positions at level IV and 6 positions at level V of the
Executive Schedule.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the Senate amendment
(i.e., no provision).
(4) Positions Exempted From the Competitive Service
Present law
No provision.
House bill
No provision.
Senate amendment
The number of positions which may be excepted from the
competitive service because of their confidential or policy-
determining character could not exceed the equivalent of 10
full-time positions.
Conference agreement
The conference agreement generally follows the Senate
amendment, except that the limit would be set at 20 and would
apply only to non-career Senior Executive Service (SES) and
schedule C positions. The four SSA positions authorized by
this statute--Commissioner, Deputy Commissioner, Inspector
General, and Chief Financial Officer--would not be counted
toward the limit, nor would the staff hired by the Social
Security Advisory Board.
(5) Workforce Plan; Biennial Appropriation
Present law
No provision.
House bill
Appropriation requests for SSA staffing and personnel would
be based upon a comprehensive workforce plan, established and
revised from time to time by the Board.
Senate amendment
The Senate amendment includes a similar provision, except
that the plan would be established by the Commissioner and
appropriations would be authorized to be made on a biennial
basis.
Conference agreement
The conference agreement follows the Senate amendment.
(6) Contingency Funds
Present law
No provision.
House bill
No provision.
Senate amendment
Appropriated contingency funds would be apportioned upon
the occurrence of the stipulated contingency, as determined
by the Commissioner and reported to the Congress.
Conference agreement
The conference agreement follows the House bill (i.e., no
provision).
(7) Seal of Office
Present law
No provision.
House bill
The Board would create a Seal of Office for SSA, and
judicial notice would be taken of it.
Senate amendment
The Commissioner would create a Seal of Office for SSA, and
judicial notice would be taken of it.
Conference agreement
The conference agreement follows the Senate amendment.
k. Transfers and Transitional Rules
(1) Transfers of Functions and Staff
Present law
No provision.
House bill
In consultation with the Secretary of HHS, the Board would
determine appropriate allocations of personnel and assets be
transferred from HHS to SSA. In addition, there would be
transferred such number of ALJs as are necessary to carry out
the functions transferred by this Act (as determined by the
Board in consultation with the Secretary).
Senate amendment
All functions, assets and personnel related to the
administration of Social Security programs would be
transferred from HHS to SSA. Transfers include all personnel
employed in connection with the functions transferred to SSA
and the assets, liabilities, contracts, property, records and
unexpended balance of appropriations, authorizations,
allocations, or other funds employed, held, or used in
connection with these functions.
Conference agreement
Under the conference agreement generally follows the Senate
amendment, with an amendment providing that the Commissioner
and the Secretary will enter into a written interagency
transfer arrangement identifying the personnel and resources
to be transferred to SSA pursuant to this provision. The
Commissioner and the Secretary will also identify support
functions which are to be transferred--i.e., payroll, legal,
and audit functions.
Under the conference agreement, SSA will continue to
perform its current functions in administering the Medicare
and Medicaid programs, including the adjudication of Medicare
appeals, until such time as the Secretary and the
Commissioner agree to a different arrangement. While the
Secretary will maintain the ultimate authority for appeal
decisions, SSA's ALJ corps will conduct appeal hearings until
such time as the Secretary and the Commissioner agree to
separate the functions.
The conferees urge the Secretary and the Commissioner to
make a joint examination of the most approriate methodology
which could be used to determine the costs to be borne by the
Medicare trust funds for Medicare-related functions performed
by SSA. The conferees request that the Secretary and the
Commissioner report their joint findings to the Committee on
Ways and Means and Committee on Finance within 36 months.
(2) Terminate 6 Executive Level IV and V Positions
Present law
No provision.
House bill
The Secretary of HHS shall terminate 6 positions in the
Department of HHS placed in level IV and 6 positions placed
in level V of the Executive Schedule other than positions
required by law.
Senate amendment
No provision.
Conference agreement
The conference agreement follows Senate amendment (i.e., no
provision).
(3) Employees Performing SSA Work on Date of Transfer
Present law
No provision.
House bill
No provision.
Senate amendment
HHS employees who are employed on the date of enactment of
this Act, solely in connection with functions transferred by
this title to SSA, and who are so employed on the day before
the date SSA is established as an independent agency, shall
be transferred from HHS to SSA.
HHS employees who are not employed on the date of the
enactment of this Act in connection with functions
transferred to SSA, but who are so employed on the day before
SSA is established as an independent agency, may be
transferred from HHS to SSA by the Commissioner, after
consulting with the Secretary of HHS, if the Commissioner
determines such transfer to be appropriate.
Conference agreement
The conference agreement follows the House bill (i.e., no
provision).
(4) Funds Transferred
Present law
No provision.
House bill
Funds available to any official or component of HHS whose
functions are transferred to the Commissioner of Social
Security or the independent SSA may, with the approval of the
Director of the Office of Management and Budget, be used to
pay compensation of any officers appointed during the
transition until funds for that purpose are otherwise
available.
Senate amendment
Same as House provision.
Conference agreement
The conference agreement follows the House bill and Senate
amendment.
(5) Transfer of Existing Orders, Determinations, Contracts, etc.
Present law
No provision.
House bill
All orders, determinations, rules, regulations, collective
bargaining agreements, recognitions of labor organizations,
certificates, licenses, and privileges in effect under the
authority of the Secretary of HHS at the time of the
transition would continue under the independent agency until
their expiration or modification by the Board in accordance
with law. Further, the change would not alter any pending
proceeding before the Secretary, nor any suit nor penalty,
except that such proceedings would continue before the Board.
Senate amendment
All orders, rules, regulations, determinations, contracts,
collective bargaining agreements (including ongoing
negotiations), recognitions of labor organizations,
certificates, licenses and privileges in effect under the
authority of the Secretary of HHS at the time of the
transition would continue under the authority of the
independent SSA until modified or terminated by the
Commissioner. Suits and penalties commenced prior to
enactment would also continue. Collective bargaining
agreements would remain in effect until the date of
termination specified in such agreement.
Conference agreement
The conference agreement follows the Senate amendment.
(6) Employee Protections; Transfer of Employees
Present law
No provision.
House bill
Transfer to the independent agency would not cause any
full-time personnel (except special government employees) or
part-time personnel holding permanent positions to be
separated or reduced in grade or compensation for one year
after such transfer.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill with
technical modifications. In addition, the provision
stipulates that transferred personnel who were not SSA
employees immediately prior to March 31, 1995, would not be
subject to directed reassignment to a duty station outside
their commuting area for one year after such date, except
that such personnel residing in the Baltimore, Maryland, or
Washington, D.C., commuting area would not be subject to
directed reassignment to duty stations in the Washington,
D.C. or Baltimore, Maryland, commuting areas, respectively,
for six months after such date. The conferees expect that in
implementing this provision, SSA will develop a definition of
``commuting area'' no later than March 31, 1995.
In establishing these protections, the conferees are
seeking to insure that SSA's transition to independent status
does not adversely affect any worker's employment, pay, or
grade. The conferees also want to protect employees who are
transferred as a result of this Act from HHS to SSA, and
their families, from having to relocate immediately. The
conferees intend these protections to extend only to
personnel actions and transfers stemming from the transition
of SSA to its new status as an independent agency. They
should not be interpreted as preventing SSA from taking
personnel actions unrelated to this transition that affect
employees' jobs, pay, or grade.
1. Transition Director
Present law
No provision.
House bill
No provision.
Senate amendment
SSA's transition to independent status would be led by a
Transition Director, who would be selected on the basis of
experience and knowledge of the operation of the Federal
Government. Within 30 days after enactment, the President
would be required to appoint the Transition Director, who
would be compensated at the rate provided for level IV of the
Executive Schedule.
Before the Commissioner of the independent SSA has been
appointed, the Transition Director would be required to
consult regularly with the Director of the Office of
Management and Budget. Upon such appointment, the Transition
Director would work under the direction of the Commissioner
of SSA.
Within 120 days of the enactment, the Transition Director
and the Commissioner of Social Security would be required to
report to the Congress on the status of the transition and on
any significant internal restructuring or management
improvements that are proposed to be undertaken.
Conference agreement
The conference agreement follows the House bill (i.e., no
provision).
m. Advisory Council
Present law
An advisory council is appointed by the Secretary of HHS
every four years for the purpose of reviewing the status of
the Social Security and Medicare programs.
House bill
No provision.
Senate amendment
There would be no quadrennial advisory councils for Social
Security, although quadrennial councils would continue to be
convened for Medicare.
Conference agreement
The conference agreement follows the Senate amendment,
except that the provision does not authorize quadrennial
advisory councils for Medicare. Also, the Advisory Council
appointed in 1994 would be authorized to complete its work.
The conferees expect that the Congress will consider
authorizing quadrennial advisory councils for Medicare in
future legislation.
n. Annual Report
Present law
The Secretary of HHS is required to make an annual report
to Congress on the administration of the functions with which
the Secretary is charged under the Social Security Act
(including OASDI and SSI).
House bill
No provision.
Senate amendment
The requirement for an annual report with respect to OASDI
and SSI would be eliminated.
Conference agreement
The conference agreement follows the Senate amendment, with
a technical amendment modifying provisions of existing law
which require the inclusion of information in SSA's annual
report so that this information will be provided to Congress
separately.
The conferees do not intend this provision to override any
statutory requirements that SSA provide information to
Congress. Rather, reports that are mandated by law will
continue to be provided. Furthermore, in the absence of the
annual report, the conferees expect that SSA will include in
its annual statistical supplement basic information similar
to that currently included in the annual report on: (1) the
OASI, DI, and SSI programs, (2) the structure of SSA,
including numbers of local offices, regional offices, and
teleservice centers; (3) the size and distribution of SSA
staff; (4) pending workloads at each level of the disability
application and appeals process; and (5) representative
payees for Social Security and SSI beneficiaries.
o. Data Exchange
Present law
Within the current Department of Health and Human Services,
programs administered by the Social Security Administration,
the Health Care Financing Administration for Children and
Families, and other programs may disclose information from
their respective systems of records to assist the
administration of various HHS programs.
House bill
No provision.
Senate amendment
No provision.
Conference agreement
The provision would continue existing data exchanges
between HHS and SSA, by requiring the Secretary to disclose
to the Commissioner, and the Commissioner to the Secretary,
any record or information requested in writing by the other
for the purpose of administering any program, if the same
type of information was disclosed to SSA or HHS,
respectively, before the date of enactment.
Until March 31, 1995, such exchanges may continue to be
carried out without need to publish new routine uses under
the Privacy Act, and without need for computer matching
agreements. Beginning March 31, 1996, additional data
exchanges and computer matching agreements shall be made in
compliance with the routine uses provision under the Privacy
Act.
p. Effective Date
Present law
No provision.
House bill
In general, the provision would take effect October 1,
1995.
Senate amendment
In general, the provision would take effect 180 days after
enactment.
Conference agreement
In general, the provision would take effect March 31, 1995.
The Secretary and the Commissioner would be required to
develop an arrangement for the transfer on March 31, 1995, of
SSA personnel, and resources to the independent agency. They
would be required to submit this plan to the Committee on
Ways and Means and the Committee on Finance no later than
January 1, 1995. No later than February 15, 1995, the General
Accounting Office would be required to issue a report to the
Committees evaluating this plan.
The conferees expect this plan to be sufficiently detailed
that Congress and the GAO can evaluate whether the decisions
made by the Secretary and the Commissioner reflect a division
of staff and resources that is equitable from the perspective
of both agencies. The plan should include the number or
portion of staff from each division within the Office of the
Secretary that will be transferred to SSA and the method by
which those staff will be designated.
In addition, to ensure that the Congress is fully informed
of the progress of the transition, the conferees expect GAO
to monitor the transition closely and to report frequently to
the Committee on Ways and Means and the Committee on Finance
on an informal basis. To facilitate GAO's role in the
transition, the conferees expect that all participants will
furnish the Comptroller General with such information as he
determines is necessary to apprise the Committees of the
progress of the transition.
Further, the conferees require that, no later than November
1, 1994, the Secretary and the Commissioner report directly
to the Committee on Ways and Means and the Committee on
Finance on their progress in developing the required joint
plan.
2. restrict disability insurance and supplemental security income
disability payments to substance abusers
(Sec. 201 of the House bill, secs. 301-305 of the Senate amendment, and
sec. 201 of the conference agreement)
a. Require that all DI Beneficiaries receive payment through a
representative payee
Present law
Supplemental Security Income (SSI) recipients whose
alcoholism or drug addiction is a contributing factor
material to their disability are required to receive payments
through a representative payee, who has responsibility for
managing their finances. There is no parallel requirement for
the Disability Insurance (DI) program.
House bill
DI beneficiaries whose drug addiction or alcoholism is a
contributing factor material to their disability would be
required to receive payment through a representative payee.
Thus, for both DI and SSI, it would be deemed in the best
interest of the individual to be paid through a
representative payee if alcoholism or drug addiction is a
contributing factor material to the determination of
disability. Further, the requirement that payment be
certified to an alternative representative payee is modified
by specifying that this occur, ``if the interest of the
disabled individual would be served thereby.''
The provision would become effective 180 days after
enactment for both current and prospective DI beneficiaries.
Senate amendment
DI beneficiaries whose disabilities are based in whole or
in part on a medical determination that the individual is a
drug addict or alcoholic would be required to receive
payments through a representative payee.
Conference agreement
The conference agreement follows the House bill with an
amendment providing that, for individuals determined eligible
for DI benefits beginning 180 days after enactment, the
requirement for a representative payee would become effective
with respect to their first benefit check. Notification that
the individual is subject to this requirement because
alcoholism or drug addiction is a contributing factor
material to his or her disability would be included in SSA's
award notice informing the individual of entitlement to
benefits.
For DI beneficiaries on the rolls, this requirement would
become effective the month following the month in which SSA
provides notification that alcoholism or drug addiction is a
contributing factor material to the individual's disability
and that, as a consequence, the individual is required to
receive payment through a representative payee.
An exception to these rules would apply in cases where SSA
has difficulty locating a suitable representative payee for a
DI beneficiary who is on the rolls prior to the effective
date of the amendment. In such situations, direct payment to
the individual could be made for up to 90 days.
The conferees recognize that requiring SSA to identify
those DI beneficiaries on the rolls whose alcoholism or drug
addiction is material to their disability is a costly and
labor-intensive task. Finding appropriate representative
payees for these individuals will also present an enormous
challenge to the agency. The conferees are establishing these
requirements in spite of their difficulty because of the high
priority they place on halting the use of DI and SSI funds to
support disabling addictions. They expect that SSA will
implement this requirement in stages, giving first priority
to newly-adjudicated cases and individuals with primary
diagnoses of alcoholism or drug addiction. The conferees
place a high priority on accomplishing this task and expect
that SSA will make every effort to identify during the 180
days following enactment DI beneficiaries on the rolls who
are required to have representative payees and to find
suitable representative payees for these beneficiaries as
soon as possible.
b. Studies
Present law
No provision.
House bill
The Secretary of Health and Human Services would be
required to conduct a study of (a) the cost, feasibility, and
equity of requiring all DI and SSI beneficiaries who suffer
from alcoholism or drug addiction (including those whose
addiction did not contribute materially to the determination
of disability) to have a representative payee, (b) the
feasibility of, and appropriate timetable for, providing
benefits through non-cash means (e.g., vouchers, debit cards,
electronic benefit transfer systems), (c) the extent to which
child recipients are afflicted by drug addiction or
alcoholism and ways of addressing such affliction, including
the feasibility of requiring treatment, and (d) the extent to
which children's representative payees are afflicted by drug
addiction or alcoholism, and methods to identify these
afflicted individuals and to ensure that benefits continue to
be provided to beneficiaries appropriately.
Not later than April 1, 1995, the Secretary shall transmit
to the Committee on Ways and Means and the Committee on
Finance a report on the findings and recommendations of the
study.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill, except
that the study of providing non-cash benefits to alcoholics
and drug addicts would focus on issues of cost and equity as
well as feasibility and would not include a timetable for
implementation. Also, the due date for the study would be
December 31, 1995.
c. Preference for Organizations as Representative Payees and Expansion
of Qualified Organizations
Present law
The law is silent with regard to assigning an order of
preference for the appointment of representative payees. SSA
regulations give preference to family members and friends
over organizations in both the DI and SSI programs. If the
representative payee is determined to have misused any
benefits, the Secretary must certify payment to an
alternative payee or to the individual.
Community-based nonprofit social service agencies in
existence on October 1, 1988, and serving as representative
payees for five or more recipients are allowed to collect a
monthly fee for their services the fee is collected from the
DI or SSI payment, and cannot exceed the lesser of ten
percent of the benefit or $25 per month. The authority for
qualified organizations to charge a fee for representative
payee services expired July 1, 1994.
House bill
In selecting a representative payee for an individual whose
alcoholism or drug addiction is a contributing factor
material to his or her disability, preference would be given
to qualified organizations, unless the Secretary determines
that selection of such an agency would not be appropriate.
Further, the requirement that qualified organizations have
been in existence on October 1, 1988, to receive a fee for
representative payee services would be repealed, and the list
of qualified organizations would be expanded to include:
(1) Community-based, nonprofit social services agencies;
(2) State or local agencies whose mission is to carry out
income maintenance, social service, or health care-related
services; and
(3) State or local government agencies with fiduciary
responsibilities (or a designee of such an agency if the
Secretary deems it appropriate).
The authority for qualified organizations to charge a fee
for representative payee services (which expired July 1,
1994) would be reestablished and made permanent, and the
monthly fee for services that qualified representative payees
of drug addicts and alcoholics receive would be set at ten
percent of the monthly benefit.
Senate amendment
Any benefits payable to DI and SSI beneficiaries (including
retroactive benefits) based in whole or in part on alcoholism
or drug addiction would be payable only pursuant to a
certification of such payment to a qualified organization
acting as representative payee for the individual. A
qualified organization would be further defined to include an
agency or instrumentality of a State or a political
subdivision of a State.
Conference agreement
The conference agreement follows the House bill, with an
amendment that provides an exception to the preference for
organizations to serve as representative payees for drug
addicts and alcoholics to allow SSA to appoint a family
member as representative payee if appointing a family member
would be appropriate. However, the conferees intend that in
cases where the alcoholic or drug addict is abusive to family
members or in cases where family members turn over benefits
to the alcoholic or drug addict, a family member would not be
found to be an appropriate representative payee. In addition,
the conferees believe that there are no circumstances under
which bartenders should be permitted to serve as
representative payees for the customers they serve.
The fee that organizational representative payees would be
permitted to charge drug addicts and alcoholics would be the
lesser of 10 percent of the monthly benefit or $50, indexed
to the Consumer Price Index. In addition, the authority for
qualified organizations to charge a fee for representative
payee services would be made retroactive to July 1, 1994; and
the ceiling on fees for organizational representative payees
of OASDI and SSI beneficiaries who are not alcoholics or drug
addicts--currently $25--would be indexed to the CPI.
d. Treatment Requirement
Present law
SSI recipients whose alcoholism or drug addiction is a
contributing factor material to their disability are required
to undergo treatment, when available, at approved facilities.
They must also comply with the terms of their treatment
program and comply with monitoring and testing provided by
the Secretary. There are no parallel requirements for the DI
program.
House bill
DI beneficiaries whose drug addiction or alcoholism is a
contributing factor material to their disability and who are
determined eligible for benefits at least 180 days after
enactment would be required to undergo treatment, when
available, at approved facilities; to comply with the terms
of such treatment programs; and to comply with monitoring and
testing provided by the Secretary.
In addition, DI beneficiaries on the rolls with a primary
diagnosis of alcoholism or drug addiction would be subject to
these requirements.
Senate amendment
DI and SSI beneficiaries whose disability is based in whole
or in part on drug addiction or alcoholism would be required
to undergo treatment, when available, at approved facilities;
to allow their treatment to be monitored; and to comply with
monitoring and testing provided by the Secretary.
Conference agreement
The conference agreement generally follows the House bill
with respect to new DI beneficiaries. With respect to DI
beneficiaries on the rolls as of the effective date of this
provision, treatment would be required, if available, for all
individuals whose alcoholism or drug addiction is a
contributing factor material to their disability.
For individuals determined eligible for DI benefits
following the effective date of this provision, the
requirement to undergo treatment, if available, would apply
beginning with the first month that they receive a benefit
check. Notification that the individual is subject to this
requirement because alcoholism or drug addiction is a
contributing factor material to his or her disability would
be included in SSA's award notice informing the individual of
entitlement to benefits.
For DI beneficiaries on the rolls, the treatment
requirement would become effective the month following the
month in which SSA provides notification that alcoholism or
drug addiction is a contributing factor material to the
individual's disability and that, as a consequence, he or she
is required to undergo treatment, if available, as a
condition of eligibility.
e. Appropriate Treatment and Standards for Compliance
Present law
Under the SSI program, alcoholics and drug addicts must
undergo ``any treatment which may be appropriate for their
condition at an institution or facility approved by the
Secretary (so long as such treatment is available).'' There
is no parallel requirement in the DI program.
House bill
DI and SSI recipients whose alcoholism or drug addiction is
a contributing factor material to their disability would be
required to undergo any medical or psychological treatment
that is appropriate for the individual's addition and for the
stage of the individual's rehabilitation, at an approved
facility.
The Secretary, in consultation with drug and alcohol
treatment professionals, would be required to issue
regulations further defining appropriate treatment and
compliance, and to establish guidelines for evaluating
compliance, including measures of the progress expected of
participants.
Senate amendment
Similar provision, but excludes the requirement that the
Secretary issue regulations defining compliance with
treatment.
Conference agreement
The conference agreement follows the House bill, except
that the requirement to undergo ``any medical or
psychological treatment'' would be replaced with a
requirement to undergo ``appropriate substance abuse
treatment.'' This change is intended to assure that SSA
continues to treat organizations such as Alcoholics Anonymous
as qualified treatment providers.
The conferees anticipate that, in addition to issuing
regulations, SSA will develop specific guidelines for
assessing compliance. These guidelines should be consistent
with the thrust of the regulations. However, the conferees
expect that the guidelines will be altered from time to time,
based on improved medical understanding of addiction.
f. Benefit Suspension for Noncompliance With Treatment
Present law
SSI law requires disabled alcoholics and drug addicts to
participate in treatment, if available, as a condition of
eligibility. It does not, however, specify the timing and
duration of benefit suspensions for failure to comply with
this requirement. There is no parallel requirement for the DI
program.
House bill
Benefits would be suspended for DI and SSI disability
beneficiaries who fail to undergo or comply with required
treatment for drug addiction or alcoholism. (Medicare
benefits would continue during the period of DI suspension,
as would Medicaid benefits for suspended SSI recipients). To
qualify for benefit reinstatement, DI and SSI recipients
would have to demonstrate compliance with treatment for
progressively longer periods--two months, three months, and
six months for the first, second, third (and subsequent)
instances of noncompliance, respectively. An individual's DI
or SSI benefits would be terminated after he or she was
suspended for 12 consecutive months. As under current law,
terminated individuals could reapply for benefits.
Senate amendment
The individual must demonstrate in such manner as the
Secretary requires, including at a continuing disability
review not later than 1 year after the determination of
disability, that the individual is complying with the terms
and conditions of treatment. If the Secretary finds that an
individual is not complying, the Secretary, in lieu of
termination, may suspend benefits until compliance is
reestablished, including compliance with any additional
requirements the Secretary determines necessary.
Conference agreement
The conference agreement follows the House bill, except
that suspensions would become effective the month following
notification by SSA of the noncompliance and resulting
suspension, rather than the month of noncompliance. (An
individual may be determined as failing to comply for a month
only if treatment is available for the month.)
g. Referral and Monitoring Activities and Report on Testing
Present law
The Secretary of HHS must provide for the monitoring and
testing of all SSI recipients whose alcoholism or drug
addiction is a contributing factor material to their
disability. There is no parallel requirement for the DI
program.
House bill
The Secretary would be required to establish a referral and
monitoring agency for each State. These agencies would
identify appropriate placements for DI and SSI recipients who
are drug addicts and alcoholics, refer them to such
treatment, monitor compliance, and report failures to comply
to the Secretary. The Secretary would also be required to
provide for the testing of DI beneficiaries, as is currently
required under the SSI program.
The Secretary would be required to submit annual reports to
Congress on required testing and referral and monitoring
activities for DI beneficiaries, as is currently required in
the SSI program. These reports would indicate the number and
percentage of DI and SSI substance abusers who did not
receive regular testing during the year.
Senate amendment
Within 1 year of enactment, the Secretary of HHS would be
required to provide for the establishment of referral and
monitoring agencies for each State, as well as for the
testing of DI beneficiaries, as is currently required under
the SSI program.
Conference agreement
The conference agreement follows the House bill with minor
drafting modifications and with an amendment replacing the
requirement for annual reports with a one-time report, due
December 31, 1996. Thereafter, annual reports on testing and
referral and monitoring activities would no longer be
required under the SSI program.
In requiring SSA to provide drug testing, the conferees
intend that this authority be used as a tool for assessing
compliance with treatment in those instances where a test is
likely to yield important information. This provision should
not be interpreted as requiring random drug or alcohol
testing of all DI and SSI beneficiaries who are disabled by
alcoholism or drug addiction.
h. 36-Month Limit
Present law
No provision.
House bill
DI and SSI benefits (including retroactive benefits) for
individuals whose drug addition or alcoholism is a
contributing factor material to their disability would be
terminated after 36 months of entitlement. Once terminated,
the individual would not be entitled to any future benefits
if alcoholism or drug addition were a contributing factor
material to the disability termination. For those
beneficiaries on the rolls 180 days after enactment of this
provision, the first month ending after 180 days after
enactment would be treated as the first month of entitlement
for the purpose of determining their 36-month period of
entitlement.
Senate amendment
In no event would an individual be entitled to benefits for
more than a total of 36 months (excluding periods of
suspension) unless upon the termination of the 36th month the
individual furnishes evidence that the individual is under a
disability which is not related in part to a medical
determination that the individual is a drug addict or
alcoholic.
Conference agreement
SSI recipients whose alcoholism or drug addiction is a
contributing factor material to SSA's determination that they
are disabled would be terminated from the rolls after
receiving 36 months of benefits unless they are disabled for
some reason other than alcoholism or drug addiction. The 36-
month limit would be applied to DI substance abusers
beginning when treatment becomes available. DI substance
abusers would be terminated after receiving benefits in
treatment for 36 months, unless they are disabled for some
reason other than substance abuse. The conferees expect that
SSA will notify DI and SSI beneficiaries well in advance of
the 36-month termination that benefits will be ceased, unless
the individual provides evidence that he or she is disabled
independent of alcoholism or drug addiction.
For SSI recipients determined eligible for benefits after
180 days after enactment, the 36-month limit would begin to
toll with the first month for which the individual receives a
benefit check. Notification that the individual is subject to
the 36-month limit because alcoholism or drug addiction is a
contributing factor material to his or her disability would
be included in SSA's award notice informing the individual of
eligibility for benefits. For SSI recipients on the rolls,
the limit would also begin to toll 180 days after enactment;
and SSA would be required to notify all affected individuals
prior to this date that they are subject to this limit
because alcoholism or drug addiction is a contributing factor
material to their disability.
For DI beneficiaries (both current and newly-entitled
individuals), the limit would begin when treatment becomes
available, at which time SSA would be required to notify the
individual that he or she is subject to the limit.
For both groups, only those months for which an individual
receives a benefit would be counted toward the 36-month
period. (Periods of benefit suspension would be excluded.) An
individual whose benefits are terminated as a result of the
36-month limit may not receive benefits for any following
month if, in such following month, alcoholism or drug
addiction is a contributing factor material to the
Secretary's determination that the individual is disabled.
Medicare and Medicaid would be continued beyond the 36-
month period so long as the terminated individual continues
to be disabled, as would benefits for dependents of
terminated DI beneficiaries (see ``i'').
The provision would sunset the 36-month limit, effective
October 1, 2004.
i. Dependents Benefits After 12-Month and 36-Month Termination
Present law
Dependents are entitled to DI benefits only so long as the
worker on whose wage record benefits are paid is so entitled.
House bill
Dependents' benefits would be continued for two years after
the worker on whose record benefits are paid is terminated
from the DI rolls.
Senate amendment
No provision.
Conference agreement
Dependents' benefits would be continued so long as the
worker on whose record benefits are paid continues to be
disabled.
j. Proration of Retroactive Lump-Sum Benefits
Present law
No provision.
House bill
Retroactive lump-sum DI and SSI disability benefits for
individuals whose alcoholism or drug abuse is a contributing
factor material to their disability would be prorated and
paid gradually. Each monthly payment would be limited to 200
percent of the normal benefit amount.
Senate amendment
Retroactive lump-sum benefits for individuals whose
disabilities are related in whole or in part to alcoholism or
drug addiction would be paid to a representative payee, who
would be charged with managing the individual's finances.
Conference agreement
The conference agreement follows the House bill, with
amendments that:
(1) Create an exception for individuals who are at high
risk of homelessness because they incurred debts related to
housing while awaiting their eligibility decision. The
exception would be limited to the amount of the debt;
(2) Provide that, when a beneficiary dies without having
received the full amount of his or her retroactive benefits
in prorated payments, the unpaid amount would be treated as
an underpayment; and
(3) Provide that, when retroactive benefits are owed to an
individual whose entitlement ceases due to 12 months of
suspension or the 36-month limit, prorated payments would
continue through a representative payee until all retroactive
benefits are paid.
The conferees are establishing the first exception to help
insure that the restrictions being imposed on lump-sum
payments will not result in an increased level of
homelessness. They expect representative payees to use any
amounts so excepted for the sole purpose of repaying housing-
related debts.
The second and third exceptions recognize that, once an
individual has been determined eligible for DI and SSI
benefits, subsequent events--such as failure to comply with
required treatment, the imposition of the 36-month limit, or
the individual's death--do not negate his or her previous
eligibility and resulting right to past-due benefits.
k. Illegal Activity and SGA
Present law
No provision.
House bill
In determining whether an individual is engaging in
substantial gainful activity, the Secretary must consider
services performed or earnings derived from such services
without regard to the legality of such services.
Senate amendment
Any proceeds derived from criminal activity undertaken to
support substance abuse would be treated as evidence of the
individual's ability to engage in substantial gainful
activity.
Conference agreement
The conference agreement follows the House bill.
l. Demonstration Projects
Present Law
No provision.
House bill
The Secretary of HHS would be required to develop and carry
out demonstration projects designed to explore innovative
referral, monitoring, and treatment approaches for drug
addicts and alcoholics who are subject to a treatment
requirement. A report to the Committee on Ways and Means and
Committee on Finance would be due not later than December 31,
1997.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill, with an
amendment authorizing the Secretary to include individuals
who are not DI or SSI beneficiaries in the projects, to the
extent that this is necessary to determine the most effective
referral, monitoring, and treatment approaches for DI and SSI
beneficiaries. The conferees expect that the Department of
Health and Human Service (Substance Abuse and Mental Health
Services Administration) and the Social Security Commissioner
will coordinate their efforts with respect to such projects.
m. Effective Date
In general, the provision would take effect 180 days after
enactment.
3. issuance of physical documents in the form of bonds, notes, or
certificates to the social security trust funds
(Sec. 202 of the House bill and sec. 301 of the conference agreement)
Present law
In general, section 201(d) of the Social Security Act
requires the Secretary of the Treasury to invest annual
surpluses of the Social Security Trust Funds in interest-
bearing obligations of the U.S. government. Under current
Treasury practice, these holdings are recorded as entries on
a ledger. No physical documents are required to be issued to
the Trust Funds evidencing these obligations.
House bill
The provision would require that each obligation issued for
purchase by the Social Security Trust Funds be evidenced by a
physical document in the form of a bond, note, or certificate
of indebtedness issued by the Secretary of the Treasury. The
physical document would state the principal amount, date of
maturity, and interest rate of the obligation. It would also
state on its face that: `` . . . the obligation shall be
incontestable in the hands of the Trust Fund to which it is
issued, that the obligation is supported by the full faith
and credit of the United States, and that the United States
is pledged to the payment of the obligation with respect to
both principal and interest.''
In addition, interest on such obligations would be paid to
the Trust Funds with paper checks drawn on the general fund.
Effective date.--The provision would apply with respect to
obligations issued, and payments made, after 60 days after
the date of enactment. No later than 60 days after enactment,
the Secretary of the Treasury would be required to issue to
the Social Security Trust Funds physical documents in the
form of bonds, notes, or certificates of indebtedness for all
outstanding Social Security Trust Fund obligations.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill.
Effective date--The provision would apply with respect to
the obligations issued, and payments made, after 60 days
after the date of enactment. No later than 60 days after
enactment, the Secretary of the Treasury would be required to
issue to the Social Security Trust Funds physical documents
in the form of bonds, notes, or certificates of indebtedness
for all outstanding Social Security Trust Fund obligations.
4. gao study regarding telephone access to local offices of the social
security administration
(Sec. 203 of the House bill and sec. 302 of the conference agreement)
Present law
The Omnibus Budget Reconciliation Act of 1990 (P.L. 101-
508), requires SSA to: (a) maintain telephone access to local
offices at the level generally available as of September 30,
1989, and (b) relist the numbers of affected offices in local
telephone directories. P.L. 101-508 also required the General
Accounting Office to report to Congress on the level of
public telephone access to local offices following enactment
of these requirements.
In September 1991, the GAO reported that SSA had generally
complied with the requirement that it relist local office
telephone numbers. It also reported that general inquiry
lines to the offices to which the provisions of P.L. 101-508
apply had decreased by 30 percent, or 766 lines, below the
level that existed on September 30, 1989.
House bill
The provision would add the following sentence to the
current statutory requirement that SSA maintain public access
to its local offices at the level generally available on
September 30, 1989: ``In carrying out the requirements of the
preceding sentence, the Secretary shall reestablish and
maintain in service at least the same number of telephone
lines to each such local office as was in place as of such
date, including telephone sets for connections to such
lines.''
In addition, the General Accounting Office would be
required to make an independent determination of the number
of telephone lines to each SSA local office which are in
place as of 90 days after enactment and to report its
findings to the House Committee on Ways and Means and the
Senate Committee on Finance no later than 150 days after
enactment.
SSA would be required to maintain its toll-free service at
a level at least equal to that in effect on the date of
enactment.
Senate amendment
No provision.
Conference agreement
The provision would require the General Accounting Office
to assess SSA's use of innovative technology (including
attendant call and voice mail) to increase public telephone
access to local Social Security offices (including a separate
assessment of the impact of such technology on offices to
which public access was curtailed on October 1, 1989.) The
conferees expect that, as part of this assessment, GAO will
evaluate the telephone access demonstration projects using
attendant call and voice mail that SSA has indicated that it
is about to begin. A report to the House Committee on Ways
and Means and the Senate Committee on Finance would be due no
later than January 31, 1996.
Effective date.--Upon enactment.
5. Expansion of State Option to Exclude Service of Election Officials
or Election Workers from Coverage
(Sec. 204 of the House bill and sec. 303 of the conference agreement)
Present law
Election workers who earn less than $100 per year are
subject to three Social Security exclusions: (a) at the
option of a State, they may be excluded from the State's
voluntary coverage agreement with the Secretary of Health and
Human Services (HHS); (b) they are excluded from the
requirement that State and local workers hired after March
31, 1986, pay the hospital insurance portion of the Social
Security tax (1.45 percent); and (c) they are excluded from
the requirement in the Omnibus Budget Reconciliation Act of
1990 (P.L. 101-508) that State and local workers who are
neither covered by a State or local retirement system nor by
a voluntary agreement pay the full Social Security tax (7.65
percent).
House bill
These three exclusions would be modified to apply to
election workers with annual earnings of up to $1,000, rather
than the current $100; and the new exempt amount would be
indexed for increases in wages in the economy.
Effective date.--The provision would apply to services
performed on or after January 1, 1995. Modifications of State
voluntary agreements to reflect the higher exclusion for
election workers would be effective with respect to services
performed in and after the calendar year in which the
modification is mailed or delivered by other means to the
Secretary.
Senate amendment
No provision
Conference agreement
The conference agreement follows the House bill except that
there would be no adjustments in the threshold for wage
increases before January 1, 2000.
Effective date.--The provision would apply to services
performed on or after January 1, 1995. Modifications of State
voluntary agreements to reflect the higher exclusion for
election workers would be effective with respect to services
performed in and after the calendar year in which the
modification is mailed or delivered by other means to the
Secretary.
6. Use of Social Security Numbers By States and Local Governments and
Federal District Courts for Jury Selection Purposes
(Sec. 205 of House bill and sec. 304 of the conference agreement)
Present law
The Privacy Act of 1974 prohibits States from requiring
individuals to provide Social Security numbers for
identification purposes unless the State was doing so prior
to January 1, 1975, or the State is specifically permitted to
do so under Federal law. The Social Security Act currently
authorizes States to use the Social Security number in
administration of any tax, general public assistance and
driver's license or motor vehicle registration law within its
jurisdiction. Other Federal statutes authorize the State use
of the Social Security number for other purposes.
Currently, courts utilize jury source lists within their
jurisdiction to select jurors. Source lists (most commonly)
made up of lists of licensed drivers and registered voters)
are usually computer tapes merged by the courts to form one
pool--or master list--from which jurors are selected.
States which are permitted under current law to collect
Social Security numbers for purposes such as driver's
licenses and voter registration are not allowed to use those
Social Security numbers for other purposes such as refining
jury selection master lists to identify and eliminate
duplicate names, unless the court was using the Social
Security number for that purpose before the Privacy Act took
effect.
Current law likewise prevents State and Federal Courts from
using the Social Security number to run the merged list
against computerized lists of convicted felons in order to
eliminate these individuals from jury pools.
House bill
States and Federal District Courts would be permitted to
use Social Security numbers which have already been collected
for purposes permitted under current law to eliminate
duplicate names and names of convicted felons from jury
source lists. Any Federal law enacted prior to enactment of
this provision which is inconsistent with the above policy
would be null, void and of no effect.
Effective date.--The provision would be effective upon
enactment.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill.
Effective date.--The provision would be effective upon
enactment.
7. Authorization for All States to Extend Coverage To State and Local
Police Officers and Firefighters Under Existing Coverage Agreements
(Sec. 206 of the House bill and sec. 305 of the conference agreement)
Present law
In general, employees of State and local governments who
participate in a public retirement system can be brought
under Social Security by means of voluntary agreements
entered into by the States with the Secretary of Health and
Human Services.
However, the State option to obtain Social Security
coverage for police officers and firefighters who are under a
public retirement system applies only in 24 States that are
named in the Social Security Act. (An additional option
applies with respect to firefighters only: any State may
obtain coverage for them if the governor certifies that it
would improve the overall benefit protection of firefighters
in the coverage group and a referendum is held among the
group under authorization of the State.) The Act also
provides that, in the 24 named States, Social Security
coverage can be obtained only after a State-sponsored
referendum.
House bill
The provision would extend to all States the option to
provide police officers and firefighters who participate in a
public retirement system with Social Security coverage under
their voluntary agreements with the Secretary of HHS. The
existing requirement for a referendum held under the
authority of the State would continue to apply.
Effectively date.--The provision would apply with respect
to modifications filed by States after enactment.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill.
Effective date.--The provision would apply with respect to
modifications filed by States after enactment.
8. Limited Exemption for Canadian ministers from certain self-
employment tax liability
(Sec. 207 of the House bill and sec. 306 of the conference agreement)
Present law
Section 233 (c)(1) of the Social Security Act authorizes
the President to enter into ``totalization agreements'' with
foreign countries to coordinate entitlement to Social
Security benefits in the U.S. with pension benefits in those
foreign countries. The law requires that international
agreements concluded pursuant to that section provide for the
elimination of dual coverage of work under the Social
Security systems of the United States and another country.
Article V(7) of the totalization agreement between the
United States and Canada provides that individuals considered
self-employed by the United States who are American citizens
but are residents of Canada are covered only under the
Canadian Pension Plan.
Under the Social Security Act, an individual who is duly
ordained, commissioned, or licensed minister of a church or a
member of a religious order is generally considered self-
employed for Social Security payroll tax purposes and subject
to SECA taxes.
The Canadian social insurance program treats ministers as
employees of the church rather than self-employed.
Prior to the 1984 totalization agreement with Canada, duly
ordained and licensed ministers who were American citizens,
but residents of Canada, were required to pay SECA taxes to
the United States and Social taxes to Canada.
In some cases, ministers who were American citizens, ut
residents of Canada, failed to file tax returns or pay SECA
tax believing that they were not required to do so because
they were paying into the Canadian Pension Plan as residents
of Canada. The Internal Revenue Service has assessed taxes
and penalties against those ministers who failed to file a
return and pay the required taxes prior to the 1984
agreement.
House bill
The provision would exempt ministers who failed to pay SECA
taxes in the United States on earnings from services
performed in Canada for a period before the 1984 totalization
agreement between the United States and Canada went into
effect, and who were required to pay social insurance taxes
in Canada on such earnings, from the payment of such taxes or
related penalties, owed to the United States.
The ministers' Social Security earnings records would not
be credited for years in which the SECA tax was not paid.
Effective date.--The provision would be effective for
individuals who meet the requirements of the statute and who
file a certificate with the Internal Revenue Service within
180 days after the IRS issues regulations implementing this
provision. The certificate shall be effective for taxable
years 1979 through 1984.
The Social Security benefit for current Social Security
beneficiaries who file certificates under this provision,
would be recomputed for months following approval of the
certificate of exemption.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill.
Effective date.--The provision would be effective for
individuals who meet the requirements of the statute and who
file a certificate with the Internal Revenue Service within
180 days after the IRS issues regulations implementing this
provision. The certificate shall be effective for taxable
years 1979 through 1984.
The Social Security benefit for current Social Security
beneficiaries who file certificates under this provision
would be recomputed for months following approval of the
certificate of exemption.
9. Exclusion of Totalization Benefits from the Application of the
Windfall Elimination Provision
(Sec. 208 of the House bill and sec. 307 of the conference agreement)
Present law
The President is authorized to enter into ``totalization
agreements'' with foreign countries. If an individual has
worked under Social Security systems in both the U.S. and a
foreign country with which the U.S. has such an agreement,
but has not worked long enough to qualify for a benefit, a
totalization agreement allows the individual's coverage under
both systems to be combined, or ``totalized,'' in order for
one country (or both) to pay a benefit. Benefits paid under a
totalization agreement are generally prorated to take account
of the fact that the person did not work for an entire career
under the system that is paying benefits.
The windfall elimination provision (WEP) is applied to the
computation of Social Security benefits for workers who are
eligible for both Social Security and a pension from work not
covered by Social Security. Under the WEP, a different
benefit formula yielding a lower amount is used to calculate
the worker's Social Security benefit.
With respect to individuals who have worked under Social
Security systems in both the United States and a foreign
country with which the United States has a totalization
agreement, the WEP applies: 1) in the computation of some
U.S. totalization benefits, and 2) in the computation of
regular U.S. Social Security benefits if the individual
receives a foreign totalization benefit.
House bill
The provision would disregard the windfall elimination
provision in computing any U.S. totalization benefit, and in
computing the amount of a regular U.S. benefit of an
individual who (1) receives a foreign totalization benefit
based in part on U.S. employment and (2) does not receive any
other pension which is based on non-covered employment
Effective date.--The provision would be effective with
respect to benefits payable for months after January, 1995.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill.
Effective date.--The provision would be effective with
respect to benefits payable for months after December, 1994.
10. Exclusion of Military Reservists from Application of the Government
Pension Offset and the Windfall Elimination Provisions
(Sec. 209 of the House bill and sec. 308 of the conference agreement)
Present law
The Government Pension Offset (GPO) and the Windfall
Elimination Provision (WEP) are intended to reduce Social
Security benefits payable to an individual who qualifies for
both a Social Security benefit and a pension based on
employment not covered by Social Security.
The WEP reduces a worker's Social Security retirement or
disability benefit in cases where the worker is receiving
both a Social Security benefit and a pension based on
employment not covered by Social Security. The WEP is
designed to eliminate the windfall resulting from the
weighted Social Security benefit formula which is intended to
replace a higher proportion of wages for low-earning workers
than for high-earning workers.
Active military service became covered under Social
Security in 1957. Inactive duty by reservists (such as
weekend drills) became covered under Social Security in 1988.
A pension based on either type of service (active or
inactive), if performed before 1957, does not trigger the
WEP. The only military pension which triggers the WEP is a
pension based on inactive duty after 1956 and before 1988.
Under the GPO, spouse's and widow(er)'s benefits received
by an individual based on his or her spouse's Social
Security-covered work are reduced by two-thirds of the amount
of any government pension to which the individual is entitled
based on his or her own work in a government job not covered
under Social Security.
House bill
An individual's receipt of a pension based wholly on
service performed as a member of a uniformed service, whether
on active or inactive duty and whether performed prior to
1988 or not, would not trigger application of the GPO and WEP
to the individual's Social Security benefits.
Effective date.--The provision would be effective with
respect to benefits payable for months after January, 1995.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill.
Effective date.--The provision would be effective with
respect to benefits payable for months after December, 1994.
11. repeal of the facility-of-payment provision
(Sec. 210 of the House bill and sec. 309 of the conference agreement)
Present law
As a general rule, when an individual receiving benefits as
the dependent of a worker has a deduction in his or her
benefits--for example, due to his or her own earnings
exceeding the earnings test exempt amount--and the Maximum
Family Benefit rule applies, the withheld benefits are
redistributed and paid to other dependents. (The Maximum
Family Benefit, or MFB, is a limit on the total amount of
benefits which can be paid on a worker's record to the worker
and his or her dependents.)
However, if all of the dependents are living in the same
household, the affected individual's benefit check is not
actually withheld; instead, the individual receives a notice
from the Social Security Administration accompanying the
benefit check. This notice explains that the beneficiary is
subject to a benefit deduction and should not actually
receive the benefit check. However, the benefit is being paid
with the understanding that it is for the use and benefit of
the other dependent beneficiaries. This procedure is known as
the facility-of-payment provision.
In cases where all the dependent beneficiaries are not
residing in the same household, the facility-of-payment
provision does not apply and the withheld benefits are
redistributed and paid directly to the remaining dependents.
House bill
The facility-of-payment provision would be repealed. As a
result, a beneficiary who is subject to a deduction would
have his or her benefits withheld, and the withheld amount
would be redistributed and paid directly to the other
dependents.
Effective date.--The provision would be effective for
benefits payable for months after December, 1995.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill.
Effective date.--The provision would be effective for
benefits payable for months after December, 1995.
12. maximum family benefits in guarantee cases
(Sec. 211 of the House bill and sec. 310 of the conference
agreement)
Present law
A guarantee is provided for workers who receive disability
benefits, then stop receiving disability benefits, and
subsequently become reentitled to benefits due to death,
retirement or disability. This `'subsequent entitlement
guarantee'' provides that the basic benefit amount (the
Primary Insurance Amount, or PIA) of a worker who becomes
reentitled to benefits or dies (thereby entitling his or her
survivors) cannot be less than the PIA in effect in the last
month of the worker's prior entitlement to disability
benefits.
Due to a drafting error in the 1977 Social Security
Amendments, the guarantee does not extend to the Maximum
Family Benefit (MFB) payable on the worker's record, which is
determined based upon the PIA. (The MFB is a limit on the
total amount of benefits which may be paid on a worker's
record to the worker and his or her dependents.) As a result,
the MFB which is payable when the worker becomes reentitled
to benefits or dies may be less than the MFB payable in the
last month of the worker's prior entitlement to disability
benefits.
House bill
The provision would make a conforming change in the Maximum
Family Benefit, so that the guaranteed PIA would be the basis
for calculating the guaranteed Maximum Family Benefit.
Effective date.--The provision would be effective for the
MFB of workers who become reentitled to benefits or die
(after previously having been entitled) after January, 1995.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill.
Effective date.--The provision would be effective for the
MFB of workers who become reentitled to benefits or die
(after previously having been entitled) after December, 1995.
13. Authorization for Disclosure of Social Security Administration
Information for Purposes of Public or Private Epidemiological and
Similar Research
(Sec. 212 of the House bill and sec. 311 of the conference agreement)
Present law
Current law prohibits Federal agencies from releasing
personal information contained in an individual file without
the written consent of the individual.
Prior to the 1989 Supreme Court decision United States
Department of Justice v. Reporters Committee for Freedom of
the Press (Reporters Committee), the Social Security
Administration (SSA) would permit disclosure of personally
identifiable information to epidemiological researchers
believing that it was permitted to do so under the Freedom of
Information Act (FOIA). Disclosure of personal information is
permitted under FOIA when the public interest served by the
disclosure outweighs the privacy interest served by
withholding and information.
In the Reporters Committee decision, the Supreme Court
restricted disclosures of personally identifiable information
under FOIA, ruling that disclosure of personal information
serves the public interest only when the requested
information gives the public insight into the Federal
government's performance of its statutory duties.
As a result of the Reporters Committee decision, SSA has
discontinued the practice of disclosing information from its
files to epidemiological researchers.
Epidemiological research examines specific risk factors
(such as exposure to chemical agents or specific medical
treatments) that may cause disease by measuring the effect of
these factors on a known population.
House bill
The provision would require SSA, under certain
circumstances, to disclose limited personally identifiable
information for epidemiological research purposes only, and
it would permit the Secretary of the Treasury to provide such
information to SSA for purposes of complying with such
requirement.
Under the provision, SSA would be required to comply with
requests for information showing whether an individual is
alive or deceased. The requester would be required to meet
two conditions:
(1) the information would be used for epidemiological or
similar research which the Secretary determined showed a
reasonable promise of contributing to a national health
interest; and
(2) the requester agrees to reimburse the Secretary for
providing such information and agree to comply with
limitations on safeguarding and rerelease or redisclosure of
such information, as specified by the Secretary. The
Secretary would not be required to comply with a request for
information if doing so would constitute a violation of a
contract entered into with a State for the provision by the
State of death information.
The Secretary of the Treasury would be permitted to provide
such information to SSA for purposes of complying with such a
requirement.
Effective date.--The provision would apply to requests for
information made after the date of enactment.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill.
Effective date.--The provision would apply to requests for
information made after the date of enactment.
14. misuse of symbols, emblems or names in reference to social security
administration, department of health and human services, or department
of the treasury
(Sec. 213 of the House bill and sec. 312 of the conference agreement)
Present law
In 1988, Congress enacted a provision prohibiting the use
of words, letters, symbols and emblems of the Social Security
Administration (SSA) and the Health Care Financing
Administration (HCFA) in a manner that the user knows or
should know would convey the false impression that such an
item was approved, endorsed, or authorized by the Social
Security Administration, the Health Care Financing
Administration or the Department of Health and Human
Services, or that the user has some connection with, or
authorization from, these agencies.
The law permits the Secretary of Health and Human Services
(HHS) to impose civil monetary penalties not to exceed $5,000
per violation or, in the case of a broadcast or telecast,
$25,000 per violation. The total amount of penalties which
may be imposed is limited to $100,000 per year.
Amounts collected by the Secretary are deposited as
miscellaneous receipts of the Treasury of the United States.
There is no provision in present law prohibiting the use of
titles, symbols, emblems, and names of the Department of the
Treasury (and its subsidiary agencies) in connection with
advertisements, mailings, solicitations, or other business
activities.
House bill
The provision would amend current law to:
(a) eliminate the annual cap on penalties;
(b) also prohibit the use of words and letters of the
Department of Health and Human Services, Supplemental
Security Income Program, or Medicaid, and the symbols or
emblems of the Department of Health and Human Services;
(c) define a ``violation,'' with regard to mailings, as
each individual piece of mail in a mass mailing;
(d) Further prohibit the use of names, letters or emblems
of SSA, HCFA, or HHS in a manner that reasonably could be
interpreted to convey a relationship with these agencies;
(e) exempt from the prohibition the use by any State agency
or instrumentality of a State, or political subdivision of
any words, letters, symbols, or emblems which identify an
agency or instrumentality of the State or political
subdivision;
(f) repeal the present law requirement that the Department
of Health and Human Services obtain a formal declination from
the Department of Justice (DOJ) before pursuing a civil
monetary penalty case under this provision;
(g) provide that penalties collected by the Secretary for
violations of this provision would be deposited in the Old-
Age and Survivors Insurance, Health Insurance or
Supplementary Medical Insurance Trust Funds as applicable;
(h) stipulate that no person may reproduce, reprint, or
distribute for a fee any form, application, or other
publication of the Social Security Administration unless such
person has obtained specific written authorization for such
activity in accordance with regulations prescribed by the
Secretary;
(i) provide that any determination of whether there is a
violation of this provision shall be made without regard to a
disclaimer;
(j) require the Commissioner of Social Security and the HHS
Secretary to issue three reports to the Committee on Ways and
Means and the Committee on Finance on the operation of
section 1140 as applicable. The report would specify: (1) the
number of complaints of violations of section 1140 received
by the Social Security Administration or the Department of
Health and Human Services during the period covering the
report; (2) the number of cases in which a notice of
violation of section 1140 was sent by the Social Security
Administration or the Department of Health and Human Services
during the period covering the report requesting that an
individual cease activities in violation of this section; (3)
the number of cases in which a civil monetary penalty was
formally proposed in a demand letter during the period
covering the report by the Social Security Administration or
the Department of Health and Human Services; (4) the total
number of civil monetary penalties assessed under this
section during the period covered by the report by the Social
Security Administration or the Department of Health and Human
Services; (5) the number of requests for hearings filed
during the period covering the report pursuant to subsection
(c)(1) of this section and section 1128A(c)(2) by the Social
Security Administration or the Department of Health and Human
Services; (6) the disposition during the period covering the
report of hearings filed pursuant to sections 1140(c)(1) and
1128A(c) (2), and (7) the total amount of civil monetary
penalties collected under this section and deposited into the
Federal Old-Age and Survivors Insurance, Health Insurance and
Supplementary Medical Insurance Trust Funds, as applicable,
during the period covering the report. The reports would be
due December 1, 1995, December 1, 1997, and December 1, 1999;
(k) specify that the provisions in section 1140 may be
enforced by the Office of Inspector General of the Social
Security Administration or the Office of Inspector General of
the Department of Health and Human Services. The provisions
for Social Security and the Department of Health and Human
Services would be effective for violations occurring after
March 31, 1995.
The provision would prohibit the use in advertisements,
solicitations, and other business activities of words,
abbreviations, titles, letters, symbols, or emblems
associated with the Department of the Treasury (and services,
bureaus, offices or subdivisions of the Department, including
the Internal Revenue Service) in a manner which could
reasonably be interpreted as conveying a connection with or
approval by the Department of the Treasury.
The bill would establish civil penalty of not more than
$5,000 per violation (or not more than $25,000 in the case of
a broadcast or telecast). In addition, the bill would
establish a criminal penalty of not more than $10,000 (or not
more than $50,000 in the case of a broadcast or telecast) or
imprisonment of not more than one year, or both, in any case
in which the prohibition is knowingly violated. Any
determination of whether there is a violation would be made
without regard to the use of a disclaimer of affiliation with
the Federal Government. The Secretary of the Treasury would
be required to provide to the Committee on Ways and Means and
the Committee on Finance, no later than May 1, 1996, a report
on enforcement activities relating to the implementation of
the provision.
Effective date.--The provisions would apply with respect to
violations occurring after the date of enactment.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill.
Effective date.--The provisions would apply with respect to
violations occurring after the date of enactment.
15. increased penalties for unauthorized disclosure of social security
information
(Sec. 214 of the House bill and sec. 313 of the conference agreement)
Present law
Each year, the Social Security Administration (SSA)
receives and maintains earnings information, including the
names and addresses of employers, on over 130 million working
Americans in its computer system. Employers are required to
file annually with the Social Security Administration copies
of their workers' W-2 statements. The statements contain the
worker's Social Security numbers and the amount of wages the
workers received during the year. In addition, each SSA file
contains an individual's birth certificate information, such
as date of birth, father's name and mother's maiden name. For
those receiving Social Security benefits, the file contains a
current address and monthly benefit amounts.
The Social Security Act includes provisions which prohibit
the unauthorized disclosure of information contained in
Social Security Administration files. The Act provides that
any person who violates these provisions and makes an
unauthorized disclosure can be found guilty of a misdemeanor
and, upon conviction, punished by a fine not exceeding $1,000
or by imprisonment not exceeding one year, or both.
House bill
The provision stipulates that unauthorized disclosure of
information and fraudulent attempts to obtain personal
information under the Social Security Act would be a felony.
Each occurrence of a violation would be punishable by a fine
not exceeding $10,000 or by imprisonment not exceeding five
years, or both.
Effective date.--The provision would apply to violations
occurring on or after the date of enactment.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill.
Effective date.--The provision would apply to violations
occurring on or after the date of enactment.
16. increase in authorized period for extension of time to file annual
earnings report
(Sec. 215 of the House bill and sec. 314 of the conference agreement)
Present law
In general, individuals under age 70 who receive Social
Security retirement or survivors benefits must file an annual
report of their earnings with the Social Security
Administration for any taxable year in which their earnings
or wages exceed the annual exempt amount of earnings under
the Social Security earnings test. These reports are due to
be filed by the same date as Federal income tax returns, the
fifteenth day of the fourth month after the close of the
taxable year (normally April 15). Individuals may be granted
a reasonable extension of time for filing an earnings report
if there is a valid reason for delay, but not more than 3
months. An extension of time for filing an income tax return
may be granted for up to 4 months.
House bill
The time for which an extension could be granted for filing
an earnings report would be increased to 4 months.
Effective date.--The provision would be effective with
respect to reports of earnings for taxable years ending on or
after December 31, 1994.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill.
Effective date.--The provision would be effective with
respect to reports of earnings for taxable years ending on or
after December 31, 1994.
17. Extension of Disability Insurance Program Demonstration Project
Authority
(Sec. 216 of the House bill and sec. 315 of the conference agreement)
Present law
Section 505(a) of the Social Security Disability Insurance
Amendments of 1980 (P.L. 96-265), as extended by the Omnibus
Budget Reconciliation Act of 1989 (P.L. 101-508), authorizes
the Secretary of Health and Human Services to waive
compliance with the benefit requirements of titles II and
XVIII for purposes of conducting work incentive demonstration
projects to encourage disabled beneficiaries to return to
work. The authority to waive compliance applies to projects
initiated prior to June 10, 1993. A final report is due no
later than October 1, 1993.
House bill
The Secretary's authority to initiate disability work
incentive demonstration projects that waive compliance with
benefit provision (as provided in P.L. 96-265) would be
extended through June 9, 1996. A final report would be due no
later than October 1, 1996.
Effective Date.--The provisions would be effective upon
enactment.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill.
Effective date.--The provisions would be effective upon
enactment.
18. Cross-Matching of Social Security Account Number Information And
Employer Identification Number Maintained by the Department of
Agriculture
(Sec. 217 of the House bill and sec. 316 of the conference agreement)
Present law
The Department of Agriculture is allowed to collect and
maintain a list of names, Social Security numbers and
employer identifications numbers of the owners and officers
of retail grocery stores which redeem food stamps. The list
is used to keep track of grocery store operators who have
been sanctioned for violations under the Food Stamp Act.
House bill
The provision would permit the Secretary of Agriculture to
share the list of names and identifying numbers with other
Federal agencies which otherwise have access to Social
Security account numbers for the purpose of effective
administration and enforcement of the Food Stamp Act of 1977
or for investigating violations of other Federal laws, or
enforcement of such laws. The Secretary of Agriculture must
restrict access to Social Security account numbers obtained
pursuant to this provision to officers and employees of
United States whose duties or responsibilities require access
for such purposes.
Effctive date.--The provision would be effective upon
enactment.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill.
Effective date.--The provision would be effective upon
enactment.
19. Certain Transfers to Railroad Retirement Account Made Permanent
(Sec. 218 of the House bill and sec. 317 of the conference agreement)
Present law
A portion of the railroad retirement tier 2 benefits are
included in gross income of recipients (similar to the
treatment accorded recipients of private pensions) for
Federal income tax purposes. The proceeds from the income
taxation of railroad tier 2 benefits received prior to
October 1, 1992, have been transferred from the General Fund
of the Treasury to the railroad retirement account. Proceeds
from the income taxation of benefits received after September
30, 1992, remain in the General Fund.
House bill
The transfer of proceeds from the income taxation of
railroad retirement tier 2 benefits from the General Fund of
the Treasury to the railroad retirement account would be made
permanent.
Effective date.--The provision would be effective for
income taxes on benefits received after September 30, 1992.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill.
Effective date.--The provision would be effective for
income taxes on benefits received after September 30, 1992.
20. Authorization for Use of Social Security Account Numbers by
Department of Labor in Administration of Federal Workers' Compensation
Laws
(Sec. 219 of the House bill and sec. 318 of the conference agreement)
Present law
The Privacy Act of 1974 prohibits a Federal agency from
using the Social Security number as an identification number
unless it is specifically permitted by statute. There is no
specific statutory authorization to permit the Department of
Labor to use the Social Security number as an identification
number.
House bill
The provision would amend section 205 of the Social
Security Act to permit the Department of Labor to use the
Social Security number as the claim identification number for
workers' compensation claims.
Effective date.--The provision would be effective upon
enactment.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill.
Effective date.--The provision would be effective upon
enactment.
21. Coverage under FICA of Federal Employees Transferred Temporarily to
International Organizations
(Sec. 220 of the House bill and sec. 319 of the conference agreement)
Present law
Federal employees participating in the Civil Service
Retirement System are entitled to retain retirement coverage
rights and benefits when they are temporarily loaned by a
Federal agency to an international organization.
The definition of employment in the Social Security Act
prohibits Federal employees participating in the Federal
Employees Retirement System (FERS) or the Foreign Service
Pension System (FSPS) (which in general provide Federal
employees hired on or after January 1, 1984, with both Social
Security coverage and a supplemental government pension) from
continuing to contribute to Social Security if they transfer
to international organizations.
House bill
The provision would amend section 210 of the Social
Security Act and section 3121 of the Internal Revenue Code of
1986 to cover, in certain cases, service performed in the
employ of an international organization pursuant to a
transfer from a Federal agency under the definition of
employment. Under this provision, the employing agency would
be responsible for reporting the employee's wages and for
paying the employer's share of FICA. The employee would be
responsible for paying the employee's share.
Effective date.--The provision would apply with respect to
service performed after the calendar quarter following the
calendar quarter of enactment.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill.
Effective date.--The provision would apply with respect to
service performed after the calendar quarter following the
calendar quarter of enactment.
22. Extension of the FICA Tax Exemption and Certain Tax Rules to
Individuals who Enter the United States under a VISA Issued under
Section 101 of the Immigration and Nationality Act
(Sec. 221 of the House bill and sec. 320 of the conference agreement)
Present law
The Mutual Educational and Cultural Exchange Act of 1961
(P.L. 87-256) established section 101(a)(15)(J) of the
Immigration and Nationality Act under which so-called J visas
are authorized to be issued for a limited period of time to
aliens who are bona fide students, scholars, trainees,
teachers, professors, research assistants, specialists, or
leaders in a field of specialized knowledge or skill.
The 1961 Act also provided that wages paid to individuals
who enter the country on a J visa would be exempt from FICA,
FUTA, and Railroad Retirement Act taxes. In addition,
employers who hire J visa holders are not required to receive
certification from the Department of Labor that an
insufficient number of U.S. workers are available to meet
their needs.
The Immigration Act of 1990 added section 101(a)(15)(Q),
which provides for the issuance of a visa to ``an alien
having a residence in a foreign country which he has no
intention of abandoning who is coming temporarily (for a
period not to exceed 15 months) to the United States as a
participant in an international cultural exchange program
approved by the Attorney General for the purpose of providing
practical training, employment, and the sharing of the
history, culture, and traditions of the country of the
alien's nationality and who will be employed under the same
wages and working conditions as domestic workers.''
The Internal Revenue Code presently does not exempt wages
paid to individuals who enter the U.S. under Q visas from
FICA, FUTA, or Railroad Act taxes.
House bill
The provision amends the Internal Revenue Code to exclude
wages paid to aliens holding Q visas from FICA, FUTA, and
Railroad Retirement Act taxes, and, for income tax purposes,
treats their income in the same manner as income received by
aliens holding visas issued pursuant to section
101(a)(15)(J).
Effective date.--The provision would take effect with the
calendar quarter following the calendar quarter of enactment.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill.
Effective date.--The provision would take effect with the
calendar quarter following the calendar quarter of enactment.
23. Study Rising Cost of Disability Insurance Benefits
(Sec. 222 of the House bill)
Present law
In their 1993 and 1994 annual report to Congress, the
Social Security Board of Trustees reported that, under
intermediate economic assumptions, the Disability Insurance
Trust Fund would become insolvent during 1995. To address
this problem, the Trustees recommended a reallocation of the
Social Security payroll tax rate from the OASI Trust Fund to
the DI Trust Fund.
In addition, to the reallocation, the Board recommended
that a significant research effort be undertaken to establish
whether higher-than-expected DI program costs are a temporary
trend or longer-term phenomenon.
House bill
The Secretary of Health and Human Services would be
required to conduct a comprehensive study of the reasons for
rising costs in the Disability Insurance program. The study
would determine the relative importance of: (a) increased
numbers of applications for benefits, (b) higher rates of
benefit allowances, and (c) decreased rates of benefit
terminations in increasing DI program costs. It would also
identify, to the extent possible, underlying social,
economic, demographic, programmatic, and other trends
responsible for changes in DI applications, allowances, and
terminations. No later than December 31, 1994, the Secretary
would be required to issue a report to the House Committee on
Ways and Means and the Senate Committee on Finance
summarizing the results of the study and making any
recommendations for legislative changes which the Secretary
determines appropriate. The study would be due no later than
December 31, 1994.
Effective date.--Upon enactment.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the Senate amendment
(i.e., no provision)
24. commission on childhood disability
(Sec. 223 of House bill and sec. 202 of the conference agreement)
Present law
No provision.
House bill
The Secretary would be directed to appoint a Commission on
the Evaluation of Disability in Children, consisting of not
less than 9 but not more than 15 members including recognized
experts in relevant fields of medicine; recognized experts in
psychology, education and rehabilitation, law, administration
of disability programs; social insurance; and other experts
determined appropriate by the Secretary.
The Commission would conduct a study, in consultation with
the National Academy of Sciences, on the effect of the
current Supplemental Security Income definition of
disability, as it applies to children under the age of 18 and
their receipt of services, including the effect of using an
alternative definition.
The study shall include issues of (1) whether the need by
families for assistance in meeting the high costs of medical
care for children with serious physical or mental impairments
might appropriately be met through expansion of Federal
health assistance programs; (2) the feasibility of providing
benefits to children through non-cash means, including
vouchers, debit cards, and electronic benefits transfer
systems; (3) the extent to which SSA can involve private
organizations in an effort to increase the provision of
social services, education, and vocational instruction with
the aim of promoting independence and the ability to engage
in substantial gainful activity; (4) the feasibility of
providing retroactive SSI benefits pursuant to the Zebley
decision on a prorated basis or by means of a packaged trust;
(5) methods to increase the extent to which benefits are used
in the effort to assist the child achieve independence and
engage in substantial gainful activity; and (6) such other
issues as the Secretary determines appropriate.
The Commission would submit a report on the results of this
study, together with any recommendations, to the Committees
on Finance and Ways and Means, no later than November 30,
1995.
Effective date.--Upon enactment.
Senate amendment
No provision.
Conference agreement
The conference agreement generally follows the House bill,
but broadens the study to include: (1) the desirability and
methods of increasing the extent to which benefits are used
in the effort to assist disabled children in achieving
independence and engaging in substantial gainful activity,
and (2) the effects of the current program on disabled
children and their families.
The conferees expect that the Commission, in conducting its
study, will hold public hearings to hear the views and
perspectives of all parties who are interested in or
concerned about the SSI childhood disability program,
including parents of children who receive benefits,
educators, and representatives of non-profit organizations
serving children with physical and mental disabilities.
Effective date.--Upon enactment.
25. Disregard of Deemed Income and Resources of Ineligible Spouse in
Determining Continued Eligibility under Section 1619
(Sec. 224 of House bill)
Present law
Under section 1619(a) of the Social Security Act, SSI
benefits continue for those working and earning above the
substantial gainful activity level, which is currently $500
per month, as long as there is no medical improvement in the
disabling condition. Benefits decline at a rate of $1 for
each additional $2 earned after disregarding the first $65 of
earned income and the first $20 of unearned income. In
general, the point at which a recipient, who has at least $20
in monthly unearned income, would be ineligible for cash SSI
benefits in a month would be the sum of $85 plus twice the
sum of the Federal benefit and State supplement, if any. For
1994, the ``breakeven point'' for an individual is $977 per
month without a State supplement. For States with a
supplement, the breakeven point increases by $2 for every $1
in State supplement.
Under section 1619(b), SSI recipients can continue on
Medicaid even if their earnings cause their income to exceed
the breakeven point and they no longer receive cash SSI
benefits. In 209(b) States, this does not apply. However, in
most States, Medicaid continues as long as the SSI recipient:
(1) continues to be blind or disabled; (2) except for
earnings, continues to meet all of the eligibility
requirements; (3) is seriously inhibited from continuing work
by termination of eligibility of Medicaid; and (4) has
earnings insufficient to provide a reasonable equivalent to
cash SSI benefits, Medicaid, and publicly funded attendant
care that would have been available if he or she did not have
earnings.
In making determinations on the fourth criterion above, SSA
compares the individual's gross earnings to a ``threshold''
amount. The threshold amount is the sum of the break even
level for gross earnings of cash benefits for an individual
with no other income living in his or her own household plus
the average Medicaid expenditures for disabled SSI cash
recipients for the State of residence. If the recipient's
gross earnings exceeds the threshold, an individualized
threshold is calculated which considers the person's actual
Medicaid use, State supplement rate, and publicly-funded
attendant care. In other words, under the fourth criterion,
Medicaid eligibility continues until the individual's
earnings reach a higher plateau which takes into account the
person's ability to afford medical care, as well as his or
her normal living expenses.
An eligible spouse's income and resources are deemed to
include the income and resources of his or her ineligible
spouse with whom he or she lives. In some cases, SSI
recipients who are working and are eligible for Medicaid
under section 1619(b) may become ineligible for Medicaid
because they marry a person who has sufficient income to
render the SSI recipient ineligible for Medicaid. In other
cases, the SSI recipient's ineligible spouse might receive
additional income which makes the SSI recipient ineligible
for Medicaid under the deeming rules.
House bill
In determining an individual's eligibility for Medicaid
pursuant to section 1619(b) there would be disregarded (in
addition to amounts disregarded under current law): (1) the
net income of the individual's ineligible spouse to the
extent the spouse's net income does not exceed twice the
threshold amount determined for the individual, and (2) the
ineligible spouse's resources up to the State's spousal
impoverishment resource amount (as defined in section
1924(f)(2) of the Social Security Act).
Effective date.--October 1, 1995.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the Senate amendment
(i.e., no provision).
26. Plans for Achieving Self-Support Not Disapproved Within 60 Days to
be Deemed Approved
(Sec. 225 of House bill)
Present law
Under a plan for achieving self-support (PASS) certain
income and resources are not taken into account in
determining eligibility for or the amount of SSI benefits. An
approved PASS allows a person who is blind or disabled to set
aside the income and resources needed to achieve a work goal.
The funds set aside can be used to pay for education,
vocational training, or starting a business. The recipient
must have a feasible work goal, a specific savings and
spending plan, and must provide for a clearly identifiable
accounting for the funds which are set aside. The individual
must then follow the plan and negotiate revisions as needed.
SSA regulations provide the basic rules for a PASS. Under
these rules, the individually designed plan can be for an
initial period of at most 18 months but an 18-month extension
can be obtained. For participants engaged in lengthy
education or training programs, an additional 12-month
extension can be obtained. All plans must be approved by SSA
before the income and resource exclusions can be excluded. If
the recipient attains his or her goal, fails to follow the
plan, or time expires, the income and resource exclusions are
again countable.
House bill
A plan for achieving self-support (PASS) would be deemed to
be approved if SSA has not acted upon a recipient's
application within 60 days and shall be deemed to be approved
until 6 months after subsequent disapproval.
Effective date.--January 1, 1995.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the Senate amendment
(i.e., no provision), but the conferees request that the
General Accounting Office conduct a study of the PASS program
and procedures since little information is available at this
time. The study should include, to the extent available, data
for the last five years that show the number and
characteristics of individuals who have applied for a plan,
the number and characteristics of those who plans have been
approved, the kinds of plans that have been approved and
their duration, the success of individuals in fulfilling
their plans, and the extent to which individuals who have
completed a PASS have become economically self-sufficient.
The GAO should also study whether improvements can or should
be made in the PASS program or in the process used to
approved proposed plans. Findings and recommendations should
be reported to the Committee on Finance and Ways and Means.
27. Temporary Authority to Approve a Limited Number of Plans for
Achieving Self-Support that Include Housing Goals
(Sec. 226 of the House bill)
Present law
A PASS allows an SSI recipient to shelter income and
resources from limits if the funds are set aside to help him
or her achieve a work goal. Funds may be set aside for
education, vocational training, or starting a business.
House bill
Plans for achieving self-support would be expanded to
include housing goals in addition to the current work goals
under a 42-month demonstration.
A report on activities under this authority would be due
within 12 months after the end of the 5-year period that
begins on January 1, 1995.
Effective date.--January 1, 1995.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the Senate amendment
(i.e., no provision).
28. Regulations Regarding Completion of PASS
(Sec. 227 of the House bill and sec. 203 of the conference agreement)
Present law
Under current plan for achieving self-support (PASS)
regulations, an SSI recipient with a PASS may be eligible for
its income and resource exclusions for 18 months, followed by
two possible extensions of 18 and 12 months, respectively. An
individual involved in a lengthy education program, could
receive a PASS for up to 4 years.
House bill
SSA would be required to take into account the difficulty
of achieving self-support based on individual needs in
determining the time limit on a PASS.
Effective date.--January 1, 1995.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill, with a
clarification instructing SSA to take into account the length
of time the individual will need to reach the individual's
employment goal within such reasonable period as the
Secretary establishes, and other factors as are determined by
the Secretary to be appropriate.
Effective date.--January 1, 1995.
29. Treatment of Certain Grant, Scholarship, or Fellowship Income
(Sec. 228 of the House bill)
Present law
Grant, scholarship, and fellowship income are treated as
unearned income. The portion of this kind of income that is
received for use in paying the cost of tuition and fees at
any educational institution is excluded from income.
House bill
Grant, scholarship, and fellowship income would be treated
as earned income without regard to the purpose of its use.
Effective date.--Applies to eligibility determinations for
any month beginning after the second month following the
month of enactment.
Senate Amendment
No provision.
Conference agreement
The conference agreement follows the Senate amendment
(i.e., no provision).
30. ssi eligibility for students temporarily abroad
(Sec. 229 of the House bill and sec. 204 of the conference agreement)
Present law
A recipient who is outside the United States for a full
calendar month or more and who is not a child living outside
the United States with a parent in the military service, is
not eligible for SSI benefits for such month or months. A
person who has been outside the United States for 30
consecutive days or more is not considered to be back until
he or she has spent 30 consecutive days, in the United
States. After an absence of 30 consecutive days, SSI
eligibility may resume effective with the day following the
30th day of continuous presence in the United States, if the
individual continues to meet all other eligibility criteria.
House bill
SSI recipients who travel outside the United States would
be exempt from the calendar month and 30-day time limit if
the absence is (1) temporary, and (2) for the purpose of
conducting studies as part of an educational program that is
designed to prepare the individual for gainful employment,
and is sponsored by a school, college, or university in the
United States.
Effective date.--January 1, 1995.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill with an
amendment limiting eligibility to a period not to exceed one
year and only if the program is not available to the
individual in the United States. Because of the difficulty
faced by the Social Security Administration in administering
the SSI program while recipients are outside the United
States, the conferees intend that this provision will be used
sparingly. An example of a qualifying educational program
under this provision would be intensive study programs that
lead to fluency in a foreign language through immersion in
the cultural and social milieu of a country where the
language is spoken. Less intensive programs, which are
generally available in the United States, would not qualify.
Efective date.--January 1, 1995.
31. disregard of cost-of-living increases for continued eligibility for
work incentives
(Sec. 230 of the House bill and sec. 205 of the conference agreement)
Present law
Under section 504 of the Unemployment Compensation
Amendments of 1976 (P.L. 94-566), State Medicaid plans are
required to provide medical assistance to an individual if he
or she: (1) simultaneously received both Social Security and
SSI in some month after April 1977; (2) is currently eligible
for and receiving OASDI benefits; (3) is currently ineligible
for SSI; and (4) receives income that would qualify him or
her for SSI after deducting all OASDI cost-of-living
adjustment increases received since the last month in which
he or she was eligible for both OASDI and SSI. The provision
is intended to protect the individual against the loss of
Medicaid coverage in many States because of a cost-of-living
increase in Social Security benefits. The provision does not
explicitly apply to beneficiaries who have Medicaid
eligibility under section 1619(b) of the Social Security Act.
House bill
This provision amends section 1619(b) of the Social
Security Act to explicitly extend to SSI beneficiaries
receiving Medicaid under section 1619(b) protection against
the loss of Medicaid coverage because of a cost-of-living
increase in their Social Security benefits.
Effective date.--Applies to eligibility determinations for
months after December, 1994.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill.
Efective date.--Applies to eligibility determinations for
months after December, 1994.
32. expansion of the authority of the social security administration to
prevent, detect, and terminate fraudulent claims for OASDI and SSI
benefits
(Sec. 231 of the House bill, sec. 306 of the Senate amendment, and sec.
206 of the conference agreement)
a. Prevention of fraud in the SSI program by translators of foreign
languages
Present law
No provision.
House bill
A translation into English by a third party of a statement
made in a foreign language by an applicant for or recipient
of SSI benefits shall not be regarded as reliable unless the
third party, under penalty of perjury, (1) certifies that the
translation is accurate, and (2) discloses the nature and
scope of the relationship between the third part and the
applicant or recipient.
Effective date.--October 1, 1994.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill with
technical changes, and is expanded to apply to fraud under
the OASDI programs.
Effective date.--October 1, 1994.
b. Civil monetary penalties in SSI and OASDI cases involving fraud
Present law
Federal law provides broad authority for imposing civil
penalties against persons who submit fraudulent claims to the
Government. There are two applicable Federal statutes. The
Civil False Claims Act (CFCA) requires the Government to use
the normal judicial process, whereby the Department of
Justice initiates a civil action in Federal Court to impose a
penalty. The Program Fraud Civil Remedies Act (PFCRA)
authorizes an administrative process under which Federal
agencies may impose penalties. These statutes are intended to
address fraud from a Government-wide perspective, and the
process of imposing penalties can be complex and time-
consuming. Further, the PFCRA is restricted to initial
applications for benefits, in some circumstances, which
limits its usefulness for SSI and OASDI purposes.
House bill
The same authority to impose civil penalties as the
Secretary of HHS now has under sections 1128A of the Social
Security Act involving false claims in the Medicare and
Medicaid programs would be provided for the SSI program. SSA
would have direct authority, after approval by the Department
of Justice, to impose civil penalties when an individual or
entity has been involved in submitting or causing to be
submitted any statement that the individual knows or should
know is false or misleading, or knows or should know omits a
material fact. Each offense involving the SSI program would
be subject to a penalty of not more than $5,000 and an
assessment, in lieu of damages, of not more than twice the
amount of benefits paid as a result of such statement or
representation. In addition, medical providers or physicians
who commit such offenses with respect to the SSI program
could be subject to exclusion from participation in the
Medicare and Medicaid programs. The process would be similar
to that used under section 1128A with respect to false claims
in the Medicare and Medicaid programs. SSA would initiate and
investigate cases, refer proposed actions to the Department
of Justice for review before proceeding, and adjudicate and
impose penalties, assessments, or exclusions. As with section
1128A, any person adversely affect by a determination could
obtain a review of such determination in the United States
Court of Appeals.
Effective date.--October 1, 1994.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill with
technical changes, and is expanded to apply to fraud under
the OASDI programs.
Effective date.--October 1, 1994.
c. SSI Fraud Considered a Felony
Present law
SSI fraud is punishable by a fine of no more than $1,000 or
a prison term of no more than one year, a misdemeanor.
House bill
SSI fraud would be punishable by a fine as determined under
the general criminal fine statutes, by a prison term of not
more than five years, or both. This provision conforms the
specific crime of SSI fraud to the criminal sanctions
currently available for Social Security Disability Insurance
fraud.
Effective date.--October 1, 1994.
Senate amendment
Same as House bill.
In addition, title II is amended to provide that any person
or other entity who is convicted of a violation involving the
provision of false statements or representations, if the
violation is committed in the role as, or application to
become, a representative payee on behalf of another
individual, shall be guilty of a felony and be subject to the
same penalties as apply to SSI. In any case in which a court
determines that a violation includes a willful misuse of
funds by such person or entity, the court may also require
that full or partial restitution of funds be made to the
individual for whom such person or entity was the
representative payee.
An individual or entity convicted of a felony under the
representative payee requirements of title XVI may not be
certified as a payee under title II.
In the case of the second or subsequent imposition of an
administrative or criminal penalty on any person or other
entity under section 208 or section 1632 of the Social
Security Act (relating to fraud), the Secretary may exclude
such person or entity from participation in any program under
title II, V, XVI, XVIII, XIX, and XX of the Social Security
Act, and any other Federal program as provided by law.
Conference agreement
The conference agreement follows the House bill with an
amendment prohibiting persons convicted of SSI fraud from
serving as representative payees under title XVI.
Effective date.--The amendments apply to conduct occurring
on or after October 1, 1994.
d. Authority to Redetermine Eligibility in Disability Cases if Fraud is
Involved And to Terminate Benefits If There is Insufficient Reliable
Evidence of Disability
Present law
SSA is only permitted to terminate SSI benefits under well-
defined conditions, unless the benefits were obtained
fraudulently. The statute provides no guidance on the use of
this authority.
House bill
An individual's eligibility for SSI disability benefits
shall be immediately redetermined, disregarding any
unreliable evidence of disability, if there is reason to
believe that fraud was involved in the application for
benefits, unless a U.S. Attorney or equivalent State
prosecutor certifies, in writing, that to do so would create
a substantial risk of jeopardizing any current or anticipated
criminal proceeding.
Effective date.--October 1, 1994.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill with
technical amendments and is also expanded to apply to fraud
in the OASDI programs.
Effective date.--October 1, 1994.
e. Availability of Recipient Identifying Information From the Inspector
General, Social Security Administration
Present law
There is no current statutory requirement for the OIG to
provide SSI recipient identifying information obtained during
a criminal investigation to SSA for administrative action.
Such identifying information is transmitted to SSA at such
time as the OIG believes it appropriate and often not until
the conclusion of a criminal investigation or a Federal or
State criminal prosecutorial process. Consequently, SSI
benefits continue to be paid during an active investigation
or prosecution based on those benefits having been obtained
through fraud.
House bill
The SSA Inspector General would be required to disclose to
SSA recipient identifying information as soon as he has
reason to believe that any individual, or group of
individuals, have secured SSI benefits in a fraudulent
manner. This requirement would not apply if a U.S. Attorney
or State prosecutor who has jurisdiction to file a criminal
action against any of the parties involved certifies that
disclosure of SSI recipient information by the IG would
jeopardize the criminal prosecution of the individual who is
the subject of the investigation.
Effective date.--October 1, 1994
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill with
technical amendments and is also expanded to apply to fraud
under the OASDI programs.
Effective date.--October 1, 1994.
f. Authority To Use Available Pre-admission Immigrant and Refugee
Medical Information
Present law
No provision.
House bill
SSA would be required to request medical information from
the Immigration and Naturalization Service or the Centers for
Disease Control which they may have with respect to any alien
who has applied for SSI benefits to the extent the
information is relevant to determining eligibility.
Effective date.--October 1, 1994.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill with
technical amendments.
Effective date.--October 1, 1994.
g. Annual Reports on Reviews of SSI Cases
Present law
No provision.
House bill
SSA would be required to annually report to the Committee
on Ways and Means and the Committee on Finance on the extent
to which it has exercised its authority to review SSI cases
and the extent to which the cases reviewed were those that
involved a high likelihood or probability of fraud.
Effective date.--October 1, 1994.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill and is also
expanded to apply to fraud under the OASDI programs.
Effective date.--Upon enactment.
h. Effective Date
Present law
No provision.
House bill
In general these provisions would take effect on October 1,
1994. The provisions dealing with civil monetary penalties is
SSI cases involving fraud, with the treatment of SSI fraud as
a felony, and with annual reports of reviews of SSI cases
would be effective upon enactment.
Senate amendment
No provision.
Conference agreement
In general, these provisions would take effect on October
1, 1994. The provision dealing with the annual reports of
reviews of SSI and OASDI cases would be effective upon
enactment.
33. Disability Review Required for SSI Recipients Who are 18 Years of
Age
(Sec. 232 of the House bill and sec. 207 of the conference agreement)
Present law
Under current law, all disabled Social Security
beneficiaries are required to undergo periodic reviews to
determine whether they continue to be disabled. There is no
comparable provision in the SSI program.
A needy child under the age of 18 years old who has an
impairment of comparable severity with that of an adult may
be considered, disabled and eligible for SSI benefits. To be
found disabled, a child must have a medically determinable
impairment that substantially reduces his or her ability to
independently, appropriately, and effectively engage in age-
appropriate activities. This impairment must be expected to
result in death or to last for a continuous period of at
least 12 months.
Under the adult disability determination process,
individuals whose impairments do not ``meet or equal'' the
listings of impairments in regulations are subjected to an
assessment of residual functional capacity. SSA determines
whether adults are able to do their past work or whether they
are able to do any substantial gainful work. If they cannot
do either one, they are disabled.
Under the disability determination process for children,
individuals whose impairments do not ``meet or equal'' the
listings of impairments in regulations are subjected to an
individualized functional assessment. This assessment
examines whether the children can engage in age-appropriate
activities effectively. If it is found that the children's
impairments are on comparable severity to an adult's without
assessing past work or ability to do substantial gainful
work, the children are disabled.
House bill
SSA would be required to re-evaluate under adult disability
criteria the eligibility of children receiving SSI after they
reach 18 years old and before they are 19 years old.
Effective date.--Applies to recipients attaining the age of
18 years old in or after the ninth month following the month
of enactment.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill with an
amendment requiring SSA to conduct CDRs for a minimum of one-
third of the children reaching age 18 in each of fiscal years
1996, 1997, and 1998. SSA will be required to report to
Congress no later than October 1, 1998 on the activities
conducted under this requirement.
Effective date.--October 1, 1995.
34. Continuing Disability Reviews
(Sec. 233 of the House bill and sec. 208 of the conference agreement)
Present law
Title II of the Social Security Act requires the Secretary
of Health and Human Services to conduct periodic continuing
disability reviews (CDRs) of disabled beneficiaries. For
those beneficiaries whose impairments are not permanent, CDRs
must generally be performed every three years. Beneficiaries
with permanent disabilities receive CDRs at such times as the
Secretary determines appropriate.
CDRs are funded as part of the Social Security
Administration's administrative budget, which is subject to
annual appropriations.
House bill
The provision would require the Secretary to conduct
periodic continuing disability reviews on SSI recipients in
the same manner as such reviews are currently required for DI
beneficiaries.
Effective date.--October 1, 1995.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill with an
amendment requiring SSA to conduct CDRs for a minimum of
100,000 SSI recipients per year for 3 years. SSA will be
required to report to Congress no later than October 1, 1998.
Effective date.--October 1, 1995.
35. Technical and Clerical Amendments
(Sec. 234 of the House bill and sec. 321 of the conference agreement)
Present law
Title II of the Social Security contains a number of
typographical errors, erroneous references, circular cross
references, inconsistent margination, incorrect punctuation,
and references to outdated versions of the Internal Revenue
Code. In addition, present law includes certain inconsistent
statutory provisions.
House bill
Technical changes would be made to correct inconsistencies
in provisions relating to fees for claimant representatives,
rounding procedures for indexing certain program amounts, and
deemed average total wages, among others. These corrections
would not change the meaning of any section of the Social
Security Act.
Effective date.--In general, the provision would be
effective upon enactment.
Senate amendment
No provision.
Conference agreement
The conference agreement follows the House bill with an
amendment to the attorney fee provision.
Effective date.--In general, the provision would be
effective upon enactment.
36. Exemption from Adjustment in Pass-Along Requirements
(Sec. 209 of the conference agreement)
Present law
Section 1618 of the Social Security Act requires that
States making supplementary payments to Supplemental Security
Income recipients ``pass along'' cost-of-living increases in
the Federal benefit. There are two options for the States in
meeting the ``pass along'' requirement: (1) the aggregate
spending level option, under which States may make
supplementary payments in the current 12-month period that
are no less, in the aggregate, than were made in the previous
12-month period; or (2) the individual payment level option,
under which a State may maintain the supplementary payment
levels that were in effect for categories of individual
recipients in March 1983.
House bill
No provision.
Senate amendment.
No provision.
Conference agreement
For the purpose of determining under the ``aggregate
spending level option,'' whether a State's expenditures for
supplementary payments during a 12-month period are not less
than its expenditures for such payments in the preceding 12-
month period, retroactive SSI payments made to children
qualifying under the Zebley court decision may, pursuant to a
State's one-time option, be excluded from the computation of
the State's expenditures.
Effective date.--The provision would be effective with
respect to increases in the level of SSI benefits whether
occurring upon, before, and after the date of enactment.
U.S. Congress,
Congressional Budget Office,
Washington, DC, August 4, 1994.
Hon. Sam Gibbons,
Acting Chairman, Committee on Ways and Means, House of
Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office (CBO)
has prepared the enclosed cost estimate for the conference
agreement on H.R. 4277, the Social Security Administrative
Reform Act of 1994. The act would establish the Social
Security Administration as an independent agency and make
reforms to the payment of Social Security Disability
Insurance and Supplemental Security Income to persons
disabled as a result of drug addiction or alcoholism.
Enactment of H.R. 4277 would affect direct spending and
receipts and thus would be subject to pay-as-you-go
procedures under section 252 of the Balanced Budget and
Emergency Deficit Control Act of 1985.
This estimate was prepared based on draft legislative
language and is subject to change pending receipt of final
legislation. If you wish further details on this estimate, we
will be pleased to provide them. The CBO staff contacts are
Paul Cullinan and Patrick Purcell, who can be reached at 226-
2820.
Sincerely,
James L. Blum
(For Robert D. Reischauer).
Enclosure.
TABLE 1.--DETAILS OF FEDERAL GOVERNMENT COSTS OF CONFERENCE AGREEMENT ON H.R. 4277
[By fiscal year, in millions of dollars]
----------------------------------------------------------------------------------------------------------------
1995 1996 1997 1998 1999 Total
----------------------------------------------------------------------------------------------------------------
TITLE I--ESTABLISH SOCIAL SECURITY
ADMINISTRATION AS AN INDEPENDENT
AGENCY
Subject to Appropriation\1\....... (\2\) 1 1 1 1 3
TITLE II--PROGRAM IMPROVEMENTS
RELATING TO OASDI AND SSI
201. Restrictions on Benefits
Based on Disability of Substance
Abusers:
Direct Spending...............
OASDI....................... -73 -35 -16 -33 -85 -242
SSI......................... -13 -9 -11 -266 -299 -598
Medicare.................... 0 -1 -2 -3 -4 -10
Medicaid.................... 0 -2 -3 -4 -4 -13
Offsets..................... 1 1 1 26 30 60
-----------------------------------------------------------------------------
Subtotal.................. -85 -46 -31 -280 -362 -803
Administrative Costs Subject
to Appropriation\1\
OASDI....................... 35 51 71 39 37 233
SSI......................... (\2\) (\2\) (\2\) 20 20 40
Administrative Costs Subject
to Appropriation\3\
OASDI....................... 11 45 91 115 129 391
202. Commission on Childhood
Disability Subject to
Appropriation.................... 1 1 (\2\) 0 0 2
203. Regulations Regarding
Completion of PASS Direct
Spending......................... (\2\) (\2\) (\2\) (\2\) (\2\) (\2\)
204. SSI Eligibility for Students
Temporarily Abroad Direct
Spending......................... (\2\) (\2\) (\2\) (\2\) (\2\) (\2\)
205. Disregard of Cost-of-living
Increases for Continued
Eligibility for Work Incentives
Direct Spending.................. (\2\) (\2\) (\2\) (\2\) (\2\) (\2\)
206. Detection and Prevention of
Fraud Direct Spending............ (\2\) (\2\) (\2\) (\2\) (\2\) (\2\)
207. Disability Review for
Children Reaching 18 Years Old:
SSI........................... 0 -3 -7 -15 -15 -40
Medicaid...................... 0 -1 -5 -10 -10 -26
Offsets....................... 0 0 1 1 2 4
-----------------------------------------------------------------------------
Subtotal.................... 0 -4 -11 -24 -23 -62
Administrative Costs Subject
to Appropriation............. 0 8 10 10 3 31
208. Continuing Disability Reviews
for SSI Recipients Direct
Spending:
SSI........................... 0 -7 -20 -35 -45 -107
Medicaid...................... 0 -5 -15 -30 -40 -90
Offsets....................... 0 1 3 3 5 12
-----------------------------------------------------------------------------
Subtotal.................... 0 -11 -32 -62 -80 -185
Subject to Appropriation...... 0 35 40 40 30 145
209. Exemption from Pass-along
Requirements Direct Spending..... 0 0 0 0 0 0
TITLE III--MISCELLANEOUS PROGRAM
IMPROVEMENTS
301. Issuance of Physical
Documents in the Form of Bonds,
Notes, or Certificates to Social
Security Trust Funds:
Subject to Appropriation\1\... 0 0 0 0 0 0
302. GAO Study Regarding Telephone
Access:
Subject to Appropriation\1\... 0 0 0 0 0 0
303. Expand FICA Exemption for
Election Workers:
OASDI Revenue................. -7 -15 -15 -15 -15 -66
HI Revenue\4\................. -2 -3 -3 -3 -3 -15
-----------------------------------------------------------------------------
Subtotal.................... -9 -18 -18 -18 -18 -81
Income Tax Offset............. 1 2 2 2 2 8
-----------------------------------------------------------------------------
Total Net Revenue........... -8 -16 -16 -16 -16 -73
304. Use of Social Security
Numbers for Juries:
Subject to Appropriation\1\... 0 0 0 0 0 0
305. Coverage for Police and
Firefighters:
OASDI Revenue................. 0 0 (\2\) (\2\) (\2\) (\2\)
HI Revenue\4\................. 0 0 (\2\) (\2\) (\2\) (\2\)
-----------------------------------------------------------------------------
Total Net Revenue........... 0 0 (\2\) (\2\) (\2\) (\2\)
306. Exemption for Certain
Ministers:
OASDI Revenue................. (\2\) (\2\) (\2\) (\2\) (\2\) (\2\)
HI Revenue\4\................. (\2\) (\2\) (\2\) (\2\) (\2\) (\2\)
-----------------------------------------------------------------------------
Total Net Revenue........... (\2\) (\2\) (\2\) (\2\) (\2\) (\2\)
307. Totalization Benefits and the
Windfall Ellm. Provision Direct
Spending (\2\) 1 1 1 1 4
308. Exclusion of Military
Reservists from Application of
the Government Pension Offset and
Windfall Provisions:
Direct Spending............... (\2\) (\2\) (\2\) (\2\) (\2\) (\2\)
309. Repeal Facility-of-Payment
Provision:
Direct Spending............... 0 0 0 0 0 0
Subject to Appropriation\1\... 0 -3 -3 -3 -3 -12
310. Simplify Computation of
Maximum Family Benefits When
Subsequent Entitlement Guarantee
Applies to PIA:
Direct Spending............... (\2\) (\2\) (\2\) (\2\) (\2\) (\2\)
311. Use of SSA Information for
Epidemiological Research:
Subject to Appropriation\1\... 0 0 0 0 0 0
312. Prohibition on Misuse of
Social Security Names, Symbols,
etc.:
Subject to Appropriation\1\... 0 0 0 0 0 0
313. Unauthorized Disclosure of
Social Security Information:
Direct Spending............... (\2\) (\2\) (\2\) (\2\) (\2\) (\2\)
Subject to Appropriation\1\... (\2\) (\2\) (\2\) (\2\) (\2\) (\2\)
314. Time Extension for Annual
Earnings Report:
Direct Spending............... 0 0 0 0 0 0
Subject to Appropriation\1\... 0 0 0 0 0 0
314. Extend DI Demonstration
Authority Direct Spending........ 0 0 0 0 0 0
316. Cross-Matching Social
Security Account Number
Information With Dept. of
Agriculture Subject to
Appropriation\1\................. 0 0 0 0 0 0
317. Certain Transfers to the
Railroad Retirement Account Made
Permanent:
Direct Spending............... 0 0 0 0 0 0
318. Authorization for use of
Social Security Numbers by the
Dept. of Labor for Administration
of Federal Workers' Compensation:
Direct Spending............... 0 0 0 0 0 0
Subject to Appropriation\1\... 0 0 0 0 0 0
319. Retirement Eligibility for
Federal Employees Transferred to
International Organizations:
Off-Budget Revenue............ (\2\) (\2\) (\2\) (\2\) (\2\) 1
On-Budget Revenue............. (\2\) (\2\) (\2\) (\2\) (\2\) (\2\)
-----------------------------------------------------------------------------
Total Net Revenue........... (\2\) (\2\) (\2\) (\2\) (\2\) 1
Subject to Appropriation\1\... 1 1 1 1 1 5
320. Extend FICA exemption to
individuals who enter U.S. Under
a Visa Issued under Section 101
of the Immigration and
Naturalization Act\5\:
Off-Budget Revenue............ -4 -5 -6 -6 -6 -27
On-Budget Revenue\4\.......... -1 -1 -1 -1 -1 -5
-----------------------------------------------------------------------------
Total Net Revenue........... -5 -6 -7 -7 -7 -32
321. Technical and Clerical
Amendments Subject to
Appropriation\1\................. 0 0 0 0 0 0
TOTALS
Revenues:
On-Budget\4\.................. -2 -2 -2 -2 -2 -12
Off-Budget.................... -11 -20 -21 -21 -21 -92
-----------------------------------------------------------------------------
Total Net................... -13 -22 -23 -23 -23 -104
Direct Spending Totals:
On-Budget..................... -12 -25 -58 -332 -381 -796
Off-Budget.................... -62 11 76 83 45 153
-----------------------------------------------------------------------------
Total....................... -74 -14 18 -249 -336 -645
=============================================================================
Direct Spending Excluding
Administrative Costs not subj. to
Appropriations:
On-Budget..................... -12 -25 -58 -332 -381 -796
Off-Budget.................... -73 -34 -15 -32 -84 -238
-----------------------------------------------------------------------------
Total....................... -85 -59 -73 -364 -465 -1036
=============================================================================
Deficit Effects--Direct Spending
Minus Revenues:
On-Budget..................... -10 -23 -56 -330 -379 -786
Off-Budget.................... -51 31 97 104 66 245
-----------------------------------------------------------------------------
Total....................... -61 8 41 -226 -313 -541
=============================================================================
Deficit Effects--Direct Spending
Exc. Administrative Costs Not
Subj. to Appropriations Minus
Revenues:
On-Budget\4\.................. -10 -23 -56 -330 -379 -786
Off-Budget.................... -62 -14 6 -11 -63 -146
-----------------------------------------------------------------------------
Total....................... -72 -37 -50 -341 -442 -932
=============================================================================
Outlays Subject to Appropriation:
On-Budget\1\.................. 37 94 120 106 89 447
Off-Budget.................... 0 0 0 0 0 0
-----------------------------------------------------------------------------
Total Net................... 37 94 120 106 89 447
----------------------------------------------------------------------------------------------------------------
\1\Under the FY 1995 Budget Resolution, administrative expenses of the OASDI program are considered on-budget
because they fall under the discretionary spending limits.
(\2\)Indicates less than $500,000.
\3\Administrative costs would not have effects that must be considered for the purposes of the Budget
Enforcement Act.
\4\Effects on Hospital Insurance revenues are included as on-budget to be consistent with the Budget Resolution
for FY 1995.
\5\Preliminary estimate provided by the Joint Committee on Taxation.
Source: Congressional Budget Office, based on draft legislative language.
Note. Details may not add to totals due to rounding.
PAY-AS-YOU-GO CONSIDERATIONS
[By fiscal years, in millions of dollars]
------------------------------------------------------------------------
1995 1996 1997 1998
------------------------------------------------------------------------
Receipts.................... -2 -2 -2 -2
Outlays..................... -12 -25 -58 -332
------------------------------------------------------------------------
The on-budget outlay changes in SSI, Medicare, Medicaid,
Food Stamps, and AFDC would be included on the pay-as-you-go
scoreboard. Social Security spending is exempt from the pay-
as-you-go rules.
Sam Gibbons,
Dan Rostenkowski,
J.J. Pickle,
Andrew Jacobs, Jr.,
Harold Ford,
Bill Archer,
Jim Bunning,
Rick Santorum,
Managers on the Part of the House.
Daniel P. Moynihan,
Max Baucus,
John Breaux,
Bob Packwood,
Bob Dole,
Managers on the Part of the Senate.
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