| |
| [Congressional
Record: May 17, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov] |
SOCIAL SECURITY ADMINISTRATIVE REFORM ACT OF 1994
Mr. ROSTENKOWSKI. Mr. Speaker, I move to suspend the rules and pass
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, as amended.
The Clerk read as follows:
H.R. 4277
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Social
Security Administrative Reform Act of 1994''.
(b) Table of Contents.--
Sec. 1. Short title and table of contents.
Sec. 2. Declaration of purposes.
TITLE I--ESTABLISHMENT OF THE SOCIAL SECURITY ADMINISTRATION AS AN
INDEPENDENT AGENCY
Sec. 101. Establishment of the Social Security Administration as a
separate, independent agency; responsibilities of the
agency.
Sec. 102. Social Security Board, executive director, deputy director,
beneficiary ombudsman; other officers.
Sec. 103. Personnel; budgetary matters; seal of office.
Sec. 104. Transfers to the new Social Security Administration.
Sec. 105. Transitional rules.
Sec. 106. Conforming amendments to Titles II and XVI of the Social
Security Act.
Sec. 107. Other conforming amendments.
Sec. 108. Rules of construction.
Sec. 109. Effective dates.
TITLE II--IMPROVEMENTS TO THE OLD-AGE, SURVIVORS, AND DISABILITY
INSURANCE PROGRAM
Sec. 201. Restrictions on payment of benefits based on disability to
substance abusers.
Sec. 202. Issuance of physical documents in the form of bonds, notes,
or certificates to the social security trust funds.
Sec. 203. Explicit requirements for maintenance of telephone access to
local offices of the Social Security Administration.
Sec. 204. Expansion of State option to exclude service of election
officials or election workers from coverage.
Sec. 205. Use of social security numbers by States and local
governments and Federal district courts for jury
selection purposes.
Sec. 206. Authorization for all States to extend coverage to State and
local policemen and firemen under existing coverage
agreements.
Sec. 207. Limited exemption for Canadian ministers from certain self-
employment tax liability.
Sec. 208. Exclusion of totalization benefits from the application of
the windfall elimination provision.
Sec. 209. Exclusion of military reservists from application of the
government pension offset and windfall elimination
provisions.
Sec. 210. Repeal of the facility-of-payment provision.
Sec. 211. Maximum family benefits in guarantee cases.
Sec. 212. Authorization for disclosure by the Secretary of Health and
Human Services of information for purposes of public or
private epidemiological and similar research.
Sec. 213. Misuse of symbols, emblems, or names in reference to social
security programs and agencies.
Sec. 214. Increased penalties for unauthorized disclosure of social
security information.
Sec. 215. Increase in authorized period for extension of time to file
annual earnings report.
Sec. 216. Extension of disability insurance program demonstration
project authority.
Sec. 217. Cross-matching of social security account number information
and employer identification number information maintained
by the Department of Agriculture.
Sec. 218. Certain transfers to railroad retirement account made
permanent.
Sec. 219. Authorization for use of social security account numbers by
department of labor in administration of Federal workers'
compensation laws.
Sec. 220. Coverage under FICA of Federal employees transferred
temporarily to international organizations.
Sec. 221. 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. 222. Study of rising costs of disability insurance benefits.
Sec. 223. Commission on childhood disability.
Sec. 224. Disregard deemed income and resources of ineligible spouse in
determining continued eligibility under section 1619(b).
Sec. 225. Plans for achieving self-support not disapproved within 60
days to be deemed approved.
Sec. 226. Temporary authority to approve a limited number of plans for
achieving self-support that include housing goals.
Sec. 227. Regulations regarding completion of plans for achieving self-
support.
Sec. 228. Treatment of certain grant, scholarship, or fellowship income
as earned income for SSI purposes.
Sec. 229. SSI eligibility for students temporarily abroad.
Sec. 230. Disregard of cost-of-living increases for continued
eligibility for work incentives.
Sec. 231. Expansion of the authority of the Social Security
Administration to prevent, detect, and terminate
fraudulent claims for SSI benefits.
Sec. 232. Disability review required for SSI recipients who are 18
years of age.
Sec. 233. Continuing disability reviews.
Sec. 234. Technical and clerical amendments.
SEC. 2. DECLARATION OF PURPOSES.
The purposes of this Act are as follows:
(1) To establish the Social Security Administration as an
independent agency, separate from the Department of Health
and Human Services.
(2) To charge the Social Security Administration with
administration of the old-age, survivors, and disability
insurance program and supplemental security income program.
(3) To establish a Social Security board as head of the
Social Security Administration and define the powers and
duties of such Board.
(4) To establish an Executive Director of the
Administration and define the powers and duties of the
Executive Director.
(5) To provide for delegating major authorities to the
Board and the Executive Director.
(6) To make other improvements in the old-age, survivors,
and disability insurance program under title II of the Social
Security Act.
TITLE I--ESTABLISHMENT OF THE SOCIAL SECURITY ADMINISTRATION AS AN
INDEPENDENT AGENCY
SEC. 101. ESTABLISHMENT OF THE SOCIAL SECURITY ADMINISTRATION
AS A SEPARATE, INDEPENDENT AGENCY;
RESPONSIBILITIES OF THE AGENCY.
Section 701 of the Social Security Act (42 U.S.C. 901) is
amended to read as follows:
``Social Security Administration
``Sec. 701. There is hereby established, as an independent
agency in the executive branch of the Government, a Social
Security Administration. 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. SOCIAL SECURITY BOARD, EXECUTIVE DIRECTOR, DEPUTY
DIRECTOR, BENEFICIARY OMBUDSMAN; OTHER
OFFICERS.
(a) In General.--Section 702 of the Social Security Act (42
U.S.C. 902) is amended to read as follows:
``SOCIAL SECURITY BOARD; EXECUTIVE DIRECTOR; OTHER OFFICERS
``Social Security Board
``Sec. 702. (a)(1)(A) The Administration shall be governed
by a Social Security Board. The Board shall be composed of
three members appointed by the President, by and with the
advice and consent of the Senate. 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.
``(B)(i) Except as provided in clauses (ii) and (iii),
members of the Board shall be appointed for terms of six
years. A member of the Board may be removed only pursuant to
a finding by the President of neglect of duty or malfeasance
in office. The President shall transmit any such finding to
the Speaker of the House of Representatives and the majority
leader of the Senate not later than five days after the date
on which such finding is made.
``(ii) Of the members first appointed--
``(I) one shall be appointed for a term of 2 years,
``(II) one shall be appointed for a term of 4 years, and
``(III) one shall be appointed for a term of 6 years,
as designated by the President at the time of appointment.
Such members shall be appointed after active consideration of
recommendations made by the chairman of the Committee on Ways
and Means of the House of Representatives and of
recommendations made by the chairman of the Committee on
Finance of the Senate.
``(iii) The President may not nominate an individual for
appointment to a term of office as member of the Board before
the commencement of the President's term of office in which
the member's term of office commences. Any 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. A member may, at the request of the President, serve
for not more than one year after the expiration of his or her
term until his or her successor has taken office. A member of
the Board may be appointed for additional terms.
``(C) Not more than two members of the Board shall be of
the same political party.
``(D) A member of the Board may not, during his or her term
as member, engage in any other business, vocation,
profession, or employment. A member of the Board may continue
as a member of the Board for not longer than the 30-day
period beginning on the date such member first fails to meet
the requirements of the preceding sentence.
``(E) Two members of the Board shall constitute a quorum,
except that one member may hold hearings.
``(F) A member of the Board shall be designated by the
President to serve as Chairperson of the Board for a term of
4 years.
``(G) The Board shall meet at the call of the Chairperson
or two members of the Board.
``(2) Each member of the Board shall be compensated at the
rate provided for level II of the Executive Schedule.
``(3) The Board shall--
``(A) govern by regulation the old-age, survivors, and
disability insurance program under title II and the
supplemental security income program under title XVI,
``(B) establish the Administration and oversee its
efficient and effective operation,
``(C) establish policy and devise long-term plans to
promote and maintain the effective implementation of programs
referred to in subparagraph (A),
``(D) appoint an Executive Director of the Administration,
as described in subsection (b), to act as the chief operating
officer of the Administration responsible for administering
the programs referred to in subparagraph (A),
``(E) constitute three of the members of the Board of
Trustees of the Federal Old-Age and Survivors Insurance Trust
Fund and the Federal Disability Insurance Trust Fund, with
the Chairperson of the Social Security Board serving as
Chairperson of such Board of Trustees,
``(F) 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,
``(G) study and make recommendations to the Congress and
the President as to the most effective methods of providing
economic security through social insurance, supplemental
security income, and related programs and as to legislation
and matters of administrative policy concerning the programs
referred to in subparagraph (A),
``(H) provide the Congress and the President with the
ongoing actuarial and other analysis undertaken by the
Administration with respect to the programs referred to in
subparagraph (A) and any other information relating to such
programs, and
``(I) conduct policy analysis and research relating to the
programs referred to in subparagraph (A).
``(4)(A) The Board may prescribe such rules and regulations
as the Board determines necessary or appropriate to carry out
the functions of the Administration. The regulations
prescribed by the Board shall be subject to the rulemaking
procedures established under section 553 of title 5, United
States Code.
``(B) The Board may establish, alter, consolidate, or
discontinue such organizational units or components within
the Administration as the Board considers necessary or
appropriate to carry out its functions, except that this
subparagraph shall not apply with respect to any unit,
component, or position provided for by this Act.
``(C) The Board may, with respect to the administration of
the old-age, survivors, and disability insurance program
under title II and the supplemental security income program
under title XVI, assign duties, and delegate, or authorize
successive redelegations of, authority to act and to render
decisions, to such officers and employees as the Board 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
Board.
``Executive Director
``(b)(1) There shall be in the Administration an Executive
Director who shall be appointed by the Social Security Board.
``(2)(A) The Executive Director shall be appointed for a
term of four years. An individual appointed to a term of
office as Executive Director after the commencement of such
term of office may serve under such appointment only for the
remainder of such term. An individual may, at the request of
the Chairperson of the Board, serve as Executive Director
after the expiration of his or her term for not more than one
year until his or her successor has taken office. An
individual may be appointed as Executive Director for
additional terms.
``(B) An individual may be removed from the office of
Executive Director before completion of his or her term only
for cause found by the Board.
``(3) The Executive Director shall be compensated at the
rate provided for level II of the Executive Schedule.
``(4) The Executive Director shall--
``(A) constitute the chief operating officer of the
Administration, responsible for administering, in accordance
with applicable statutes and regulations, the old-age,
survivors, and disability insurance program under title II
and the supplemental security income program under title XVI,
``(B) maintain an efficient and effective operational
structure for the Administration,
``(C) implement the long-term plans of the Board to promote
and maintain the effective implementation of such programs,
``(D) report annually to the Board on program costs under
titles II and XVI, make annual budgetary recommendations to
the Board for the ongoing administrative costs of the
Administration under this Act, and defend the recommendations
before the Board,
``(E) advise the Board and the Congress on the effect on
the administration of such programs of proposed legislative
changes in such programs,
``(F) serve as Secretary of the Board of Trustees of the
Federal Old-Age and Survivors Insurance Trust Fund and the
Federal Disability Insurance Trust Fund,
``(G) report in December of each year to the Board for
transmittal to the Congress concerning the administrative
endeavors and accomplishments of the Administration, and
``(H) carry out such additional duties as are assigned by
the Board from time to time.
Any reference to the Board in this Act or any other provision
of law in connection with the exercise of a function of the
Board which is delegated to the Executive Director pursuant
to this section shall be considered a reference to the
Executive Director.
``Deputy Director of Social Security
``(c)(1) There shall be in the Office of the Executive
Director a Deputy Director, who shall be appointed by and
serve at the pleasure of the Executive Director.
``(2) The Deputy Director shall be compensated at the rate
provided for level III of the Executive Schedule.
``(3) The Deputy Director shall perform such duties and
exercise such powers as the Executive Director shall from
time to time assign or delegate. The Deputy Director shall be
Acting Executive Director of the Administration during the
absence or disability of the Executive Director and, unless
the Board designates another officer of the Government as
Acting Executive Director, in the event of a vacancy in the
office of the Executive Director.
``General Counsel
``(d)(1) There shall be in the Administration a General
Counsel, who shall be appointed by and serve at the pleasure
of the Board. The General Counsel shall be the principal
legal officer in the Administration.
``(2) The General Counsel shall be compensated at the rate
provided for level IV of the Executive Schedule.
``Inspector General
``(e)(1) There shall be in the Administration an Office of
the Inspector General. Such Office shall be headed by an
Inspector General appointed in accordance with the Inspector
General Act of 1978.
``(2) The Inspector General shall be compensated at the
rate provided for level IV of the Executive Schedule.
``Beneficiary Ombudsman
``(f)(1) There shall be in the Administration an Office of
the Beneficiary Ombudsman, to be headed by a Beneficiary
Ombudsman appointed by the Board.
``(2)(A) The Beneficiary Ombudsman shall be appointed for a
term of five years, except that the individual first
appointed to the Office of Beneficiary Ombudsman shall be
appointed for a term ending September 30, 2000. An individual
appointed to a term of office as Beneficiary Ombudsman after
the commencement of such term may serve under such
appointment only for the remainder of such term. An
individual may, at the request of the Chairperson of the
Board, serve as Beneficiary Ombudsman after the expiration of
his or her term for not more than one year until his or her
successor has taken office. An individual may be appointed as
Beneficiary Ombudsman for additional terms.
``(B) An individual may be removed from the office of
Beneficiary Ombudsman before completion of his or her term
only for cause found by the Board.
``(3) The Beneficiary Ombudsman shall be compensated at the
rate provided for level V of the Executive Schedule.
``(4) The duties of the Beneficiary Ombudsman are as
follows:
``(A) To represent within the Administration's
decisionmaking process the interests and concerns of
beneficiaries under the old-age, survivors, and disability
insurance program under title II and the supplemental
security income program under title XVI.
``(B) To review the Administration's policies and
procedures for possible adverse effects on such
beneficiaries.
``(C) To recommend within the Administration's
decisionmaking process changes in policies which have caused
problems for such beneficiaries.
``(D) To help resolve the problems under such programs of
individual beneficiaries in unusual or difficult
circumstances, as determined by the Administration.
``(E) To represent within the Administration's
decisionmaking process the views of beneficiaries in the
design of forms and the issuance of instructions.
``(5) The Board shall assure that the Office of the
Beneficiary Ombudsman has staff sufficient to enable the
Beneficiary Ombudsman to efficiently carry out his or her
duties. Such staff shall be located in the regional offices,
program centers, and central office of the Administration.
``(6) The annual report of the Board under section 704
shall include a description of the activities of the
Beneficiary Ombudsman.
``Administrative Law Judge
``(g)(1) There shall be in the Administration an Office of
the Chief Administrative Law Judge, who shall be appointed by
the Board. The duty of the Chief Administrative Law Judge
shall be to administer the affairs of the administrative law
judges serving in the Administration in a manner so as to
ensure that hearings and other business are conducted by the
administrative law judges in accordance with applicable law
and regulations.
``(2) The Chief Administrative Law Judge shall report
directly to the Board.''.
(b) Conforming Amendments Relating to Composition of Board
of Trustees of OASDI Trust Funds.--Section 201(c) of such Act
(42 U.S.C. 401(c)) is amended--
(1) in the first sentence, by striking ``shall be composed
of'' and all that follows down through ``ex officio'' and
inserting the following: ``shall be composed of the members
of the Social Security Board, the Secretary of the Treasury,
the Secretary of Health and Human Services, all ex officio'';
(2) by inserting after the first sentence the following new
sentence: ``The Chairperson of the Social Security Board
shall be the Chairperson of the Board of Trustees.''; and
(3) by striking ``Commissioner of Social Security'' and
inserting ``Executive Director of the Social Security
Administration''.
(c) Interim Authority of the Commissioner.--The President
shall nominate for appointment the initial members of the
Social Security Board not later than April 1, 1995. In the
event that, as of October 1, 1995, all members of the Social
Security Board have not entered upon office, until all
members of the Board have entered upon office, the officer
serving on October 1, 1995, as Commissioner of Social
Security in the Department of Health and Human Services (or
Acting Commissioner, if applicable), or such officer's
successor, shall, while continuing to serve as Commissioner
of Social Security (or Acting Commissioner) in such
Department, serve as head of the Social Security
Administration established under section 701 of the Social
Security Act (as amended by this Act) and shall assume the
powers and duties of such Board and of the Executive Director
under such Act (as amended by this Act).
SEC. 103. PERSONNEL; BUDGETARY MATTERS; SEAL OF OFFICE.
Section 703 of the Social Security Act (42 U.S.C. 903) is
amended to read as follows:
``administrative duties of the social security board
``Personnel
``Sec. 703. (a)(1) The Social Security Board shall appoint
such additional officers and employees as it considers
necessary to carry out its functions. Except as otherwise
provided 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 Board may procure the services of experts and
consultants in accordance with the provisions of section 3109
of title 5, United States Code.
``(3) The Director of the Office of Personnel Management
shall authorize for the Administration a total number of
Senior Executive Service positions which is 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 Administrative Reform Act of 1994, to the
extent that the greater number of such authorized positions
is specified in the comprehensive workforce plan as
established and revised by the Board under subsection (b)(1).
The total number of such positions authorized for the
Administration pursuant to such section 3133 shall not at any
time be less than the number of such authorized positions as
of immediately before such date.
``(4) In addition to the positions of the Administration in
the Executive Schedule specified in section 702, the
Administration is authorized six additional positions at
level IV of the Executive Schedule and six additional
positions at level V of the Executive Schedule.
``Budgetary Matters
``(b) Appropriations requests for staffing and personnel of
the Administration shall be based upon a comprehensive
workforce plan, which shall be established and revised from
time to time by the Board.
``Seal of Office
``(c) The Board shall cause a seal of office to be made for
the Administration of such design as the Board shall approve.
Judicial notice shall be taken of such seal.''.
SEC. 104. TRANSFERS TO THE NEW SOCIAL SECURITY
ADMINISTRATION.
(a) Functions.--There are transferred to the Social
Security Administration all functions carried out by the
Secretary of Health and Human Services with respect to the
programs and activities the administration of which is vested
in the Social Security Administration by reason of this Act
and the amendments made thereby. The Social Security Board
shall allocate such functions in accordance with sections
701, 702, and 703 of the Social Security Act (as amended by
this Act).
(b) Personnel, Assets, Etc.--(1) There are transferred from
the Department of Health and Human Services to the Social
Security Administration, for appropriate allocation by the
Social Security Board in the Social Security Administration--
(A) the personnel (other than administrative law judges)
employed in connection with the functions transferred by this
Act and the amendments made thereby, as considered
appropriate by the Board in consultation with the Secretary
of Health and Human Services,
(B) such number of administrative law judges as are
necessary to carry out the functions transferred by this Act
and the amendments made thereby, as determined by the Board
in consultation with the Secretary of Health and Human
Services, and
(C) 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 transferred pursuant to this
subsection shall be used only for the purposes for which the
funds were originally authorized and appropriated.
(3) The Secretary of Health and Human Services shall
terminate--
(A) six positions in the Department of Health and Human
Services placed in level IV of the Executive Schedule (or
equivalent positions) other than positions specifically
required under section 5315 of title 5, United States Code,
or any other provision of law, and
(B) six positions in such Department placed in level V of
the Executive Schedule (or equivalent positions) other than
positions specifically required under section 5316 of such
title or any other provision of law.
(4) The transfer pursuant to this section of full-time
personnel (except special Government employees) and part-time
personnel holding permanent positions shall not cause any
such employees to be separated or reduced in grade or
compensation for 1 year after such transfer or October 1,
1995, whichever is later.
(c) Abolishment of Office of Commissioner in the Department
of Health and Human Services.--Effective upon the entry upon
office of all initial members of the Social Security Board
pursuant to section 702 of the Social Security Act (as
amended by this Act), the position of Commissioner of Social
Security in the Department of Health and Human Services is
abolished.
SEC. 105. TRANSITIONAL RULES.
(a) Interim Authority for Appointment and Compensation.--At
any time on or after the date of the enactment of this Act--
(1) any of the officers provided for in section 702 of the
Social Security Act (as amended by this Act) may enter upon
office, as provided in such section, and
(2) the Social Security Board, upon entry upon office of
all of the members thereof, may prescribe regulations
providing for the orderly transfer of proceedings before the
Secretary of Health and Human Services to the Social Security
Board.
Funds available to any official or component of the
Department of Health and Human Services, functions of which
are transferred to the Social Security Board or the Social
Security Administration by this Act, may be used, with the
approval of the Director of the Office of Management and
Budget, to pay the compensation and expenses of any officer
entering upon office pursuant to this section until such time
as funds for that purpose are otherwise available.
(b) Continuation of Orders, Determinations, Rules,
Regulations, Etc.--All orders, determinations, rules,
regulations, permits, contracts, 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 his delegate), and (B) which relate to functions
which, by reason of this Act, the amendments made thereby,
and regulations prescribed thereunder, are vested in the
Social Security Board, and
(2) which are in effect immediately before October 1, 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, in accordance with law, by such Board.
(c) Continuation of Proceedings.--The provisions of this
Act (including the amendments made thereby) shall not affect
any proceeding pending before the Secretary of Health and
Human Services immediately before October 1, 1995, with
respect to functions vested (by reason of this Act, the
amendments made thereby, and regulations prescribed
thereunder) in the Social Security Board, except that such
proceedings, to the extent that they relate to such
functions, shall continue before such Board. 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 Act had not been enacted, and orders issued
in any such proceeding shall continue in effect until
modified, terminated, superseded, or repealed by such Board,
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 Act shall not affect suits
commenced prior to October 1, 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 Act had not been enacted. No cause of action, and
no suit, action, or other proceeding commenced by or against
any officer in his official capacity as an officer of the
Department of Health and Human Services, shall abate by
reason of the enactment of this Act. Causes of action, suits,
actions, or other proceedings may be asserted by or against
the United States and the Social Security Administration, or
such official of such Administration as may be appropriate,
and, in any litigation pending immediately before October 1,
1995, the court may at any time, on its own motion 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 Act shall not have the
effect of releasing or extinguishing any criminal
prosecution, penalty, forfeiture, or liability incurred as a
result of any function which (by reason of this Act), the
amendments made thereby, and regulations prescribed
thereunder) is vested in the Social Security Board.
(f) Judicial Review.--Orders and actions of the Social
Security Board in the exercise of functions vested in such
Board under this Act (and the amendments made thereby) 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 October
1, 1995. Any statutory requirements relating to notice,
hearings, action upon the record, or administrative review
that apply to any function so vested in such Board shall
continue to apply to the exercise of such function by such
Board.
(g) Exercise of Functions.--In the exercise of the
functions vested in the Social Security Board under this Act,
the amendments made thereby, and regulations prescribed
thereunder, such Board 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 Board, and
actions of such Board shall have the same force and effect as
when exercised by such Secretary.
(h) Operation of Transitional Rules in the Event of Interim
Authority in the Commissioner.--For purposes of this section,
in any case in which the powers and duties to be transferred
to the Social Security Board are transferred to the
Commissioner of Social Security (or acting Commissioner) in
the Department of Health and Human Services for an interim
period pursuant to section 102(c), the preceding provisions
of this section shall apply with respect to the transfer of
such powers and duties to and from such Commissioner (or
acting Commissioner) pursuant to section 102(c) in the same
manner and to the same extent as they would have applied to a
direct transfer from the Secretary of Health and Human
Services to the Social Security Board if all members of the
Board had entered upon office.
SEC. 106. CONFORMING AMENDMENTS TO TITLES II AND XVI OF THE
SOCIAL SECURITY ACT.
(a) In General.--Title II of the Social Security Act (other
than section 201, section 218(d), section 226, section 226A,
and section 231(c)) and title XVI of such Act are each
amended--
(1) by striking, wherever it appears therein, ``Secretary
of Health and Human Services'' and inserting ``Social
Security Board'';
(2) by striking, wherever it appears therein, ``Department
of Health and Human Services'' and inserting ``Social
Security Administration'';
(3) by striking, wherever it appears therein,
``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 therein, 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'',
and ``he'', and inserting (in the case of the word
``Secretary'') ``Social Security Board'', (in the case of the
word ``Secretary's'') ``Board's'', (in the case of the word
``his'') ``the Board's'', (in the case of the word ``him'')
``the Board'', and (in the case of the word ``he'') ``the
Board''; and
(5) by striking, wherever it appears therein, ``Internal
Revenue Code of 1954'' and inserting ``Internal Revenue Code
of 1986''.
(b) Amendments to Section 218.--Section 218(d) of such Act
(42 U.S.C. 418(d)) is amended by striking ``Secretary'' each
place it appears in paragraphs (3) and (7) and inserting
``Social Security Board''.
(c) Amendments to Section 222.--Section 222(d) of such Act
(42 U.S.C. 422(d)) is amended--
(1) in the last sentence of paragraph (1), by striking
``Commissioner of Social Security'' and inserting ``Executive
Director of the Social Security Administration''; and
(2) in the first sentence of paragraph (2), by striking
``Commissioner of Social Security'' and inserting ``Executive
Director of the Social Security Administration''.
(d) Amendment to Section 231.--Section 231(c) of such Act
(42 U.S.C. 431(c)) is amended by striking ``Secretary
determines'' and inserting ``Social Security Board and the
Secretary jointly determine''.
(e) Amendment to Section 1615.--Section 1615(d) of such Act
(422 U.S.C. 1832d(d)) is amended by striking ``Commissioner
of Social Security'' and inserting ``Executive Director of
the Social Security Administration''.
SEC. 107. OTHER CONFORMING AMENDMENTS.
Title VII of the Social Security Act is amended--
(1) by striking section 704 (42 U.S.C. 904) and inserting
the following new section:
``reports
``Sec. 704. The Secretary and the Social Security Board
shall make full reports to Congress, within 120 days after
the beginning of each regular session, of the administration
of the functions with which they are charged under this Act.
In addition to the number of copies of such reports
authorized by other law to be printed, there is hereby
authorized to be printed not more than 5,000 copies of each
such report for use by the Secretary and Social Security
Board for distribution to Members of Congress and to State
and other public or private agencies or organizations
participating in or concerned with the programs provided for
in this Act.'';
(2) in section 709(b)(2) (42 U.S.C. 910(b)(2)), by striking
``(as estimated by the Secretary)'' and inserting ``, as
estimated by the Social Security Board or the Secretary
(whichever administers the program involved),''; and
(3) by adding at the end thereof the following new section:
``duties and authority of secretary
``Sec. 712. (a) The Secretary shall perform the duties
imposed upon him by this Act and shall also have the duty of
studying and making recommendations as to the most effective
methods of providing economic security and as to legislation
and matters of administrative policy concerning the programs
administered by the Secretary and related subjects; except
that nothing in this section shall be construed to require
the Secretary to make studies or recommendations with respect
to programs administered by the Social Security
Administration.
``(b) 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
Secretary's functions under this Act. Appointments of
attorneys and experts may be made without regard to the civil
service laws.''.
SEC. 108. 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 Act or a provision of law amended by
this Act), regulation, rule, record, court order, or other
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, 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 Act or a provision of law amended by
this Act), regulation, rule, record, court order, or other
document to the Secretary of Health and Human Services with
respect to such Secretary's functions under such programs,
such reference shall be considered a reference to the Social
Security Board.
(c) References to Other Officers and Employees.--Whenever
any reference is made in any provision of law (other than
this Act or a provision of law amended by this Act),
regulation, rule, record, or document to any other officer or
employee of the Department of Health and Human Services with
respect to such officer's or employee's functions under such
programs, such reference shall be considered a reference to
the appropriate officer or employee of the Social Security
Administration.
SEC. 109. EFFECTIVE DATES.
(a) In General.--Sections 101, 102(a), 103, 104, 106, 107,
and 108 of this Act (and the amendments made thereby) shall
take effect October 1, 1995.
(b) Exceptions.--Section 102(b) of this Act shall take
effect upon the entry upon office of all initial members of
the Social Security Board. Sections 102(c) and 105 of this
Act shall take effect on the date of the enactment of this
Act.
(c) New Spending Authority.--Any new spending authority
provided by this title shall be effective for any fiscal year
only to such extent or in such amounts as are provided in
advance in appropriation Acts.
TITLE II--IMPROVEMENTS TO THE OLD-AGE, SURVIVORS, AND DISABILITY
INSURANCE PROGRAM
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 after the first sentence the following new
sentence: ``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.''; and
(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''.
(B) Effective date.--The amendments made by subparagraph
(A) shall apply with respect to benefits for months beginning
after 180 days after the date of the enactment of this Act.
(C) 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 of and appropriate timetable for
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 April 1, 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 State or local government agency whose mission is
to carry out income maintenance, social service, or health
care-related activities, or
``(III) a State or local government agency with fiduciary
responsibilities,
(or a designee of such an agency if the Secretary deems it
appropriate), unless the Secretary determines that selection
of such an agency would not be appropriate.''.
(B) Availability of public agencies and other qualified
organizations to serve as representative payees.--Section
205(j)(4) of such Act (42 U.S.C. 405(j)(4)) is amended--
(i) in subparagraph (A)--
(I) by striking ``exceed the lesser of--'' and inserting
``exceed--''; and
(II) by striking clauses (i) and (ii) and inserting the
following:
``(i) in any case in which an 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, 10
percent of the monthly benefit involved, or
``(ii) in any other case, the lesser of--
``(I) 10 percent of the monthly benefit involved, or
``(II) $25.00 per month.'';
(ii) in subparagraph (B)--
(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); and
(iii) by striking subparagraph (D), effective July 1, 1994.
(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.''.
(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) Notwithstanding any other provision of this
title, 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 and such
individual is determined by the Secretary not to be in
compliance with the requirements of this subsection for a
month, such benefits shall be suspended for a period
commencing with such month and 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
requirements for the applicable period specified in paragraph
(3).
``(B) For purposes of this subsection, in the case of an
individual who is entitled to benefits based on disability
for the first month ending after 180 days after the date of
the enactment of the Social Security Administrative Reform
Act of 1994, if such individual has a primary diagnosis of
alcoholism or drug addiction, such alcoholism or drug
addiction shall be treated as a contributing factor material
to the Secretary's determination of disability.
``(2)(A) An individual described in paragraph (1) is in
compliance with the requirements of this subsection for a
month if such individual in such month undergoes any medical
or psychological treatment that may be appropriate, for such
individual's condition diagnosed as substance abuse or
alcohol abuse and for the stage of such individual's
rehabilitation, at an institution or facility approved for
purposes of this subsection by the Secretary, and complies in
such month with the terms, conditions, and requirements of
such treatment and with requirements imposed by the Secretary
under paragraph (6).
``(B) An individual described in paragraph (1) shall not be
determined to be not in compliance with the requirements of
this subsection for a month if access by such individual to
such treatment is not reasonably available for that month, as
determined under 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, and
``(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), as the
termination month with respect to such entitlement.
``(5)(A) Subject to subparagraph (B), 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)
or (4), shall be payable as though such disabled individual
were receiving such benefits which are not payable under this
subsection (and, in the case of a disabled individual whose
entitlement is terminated under paragraph (4), as though such
disabled individual's entitlement were not terminated).
``(B) If the monthly insurance benefits of a disabled
individual referred to in subparagraph (A) are not payable by
reason of termination of entitlement under paragraph (4),
monthly insurance benefits which are payable to any other
individual on the basis of the wages and self-employment
income of such disabled individual pursuant to subparagraph
(A) shall not be payable for any month after 2 years after
the last month of such entitlement.
``(6)(A) The Secretary shall provide for the monitoring and
testing of all individuals who are receiving benefits under
this title and who as a condition of payment of such benefits
are required to be undergoing treatment and complying with
the terms, conditions, and requirements thereof as described
in paragraph (2)(A), in order to assure such compliance and
to determine the extent to which the imposition of such
requirements is contributing to the achievement of the
purposes of this title. The Secretary shall annually submit
to the Congress a full and complete report on the Secretary's
activities under this paragraph. Each such annual report
shall include the number and percentage of such individuals
who did not receive regular drug testing during the year
covered by the report.
``(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 required medical or
psychological treatment under this subsection, and
``(ii) establishing guidelines to be used to review and
evaluate their compliance, including measures of the progress
of participants in such programs.
``(C)(i) For purposes of carrying out the requirements of
subparagraphs (A) and (B), the Secretary shall establish in
each State a referral and monitoring agency for such 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.
``(7) 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--
``(A) the amount of such past-due benefit paid in such
month, and
``(B) the amount of any benefit for the preceding month
under such current entitlement which is payable in such
month,
does not exceed 200 percent of the amount of such benefit for
the preceding month.
``(8) 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, the month
following the 36-month period beginning with such
individual's first month of entitlement 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), as the
termination month with respect to such entitlement, and such
individual shall be deemed not to be entitled to any past-due
benefits under such entitlement remaining unpaid as of the
end of such 36-month period. Such individual may not be
entitled to benefits based on disability for any month after
such 36-month period if, with respect to such entitlement,
alcoholism or drug addition is a contributing factor material
to the Secretary's determination that such individual is
under a disability.
``(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) Preservation of medicare benefits.--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
benefit for any month is not payable by reason of paragraph
(1) of section 225(c) (and is not terminated by reason of
paragraph (4) or (8) of section 225(c)) shall be treated as
entitled to such benefit for such month if such person would
be entitled to such benefit for such month in the absence of
such section.''.paragraph (other than paragraphs (6)(C) and
(8) of section 225(c) of the Social Security Act added 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) of individuals becoming
entitled to such benefits for months beginning after 180 days
after the date of the enactment of this Act. Section
225(c)(6)(C) of the Social Security Act shall take effect 180
days after the date of the enactment of this Act. Section
225(c)(8) of the Social Security Act (added by this section)
shall apply with respect to benefits for months ending after
180 days after the date of the enactment of this Act, and,
for purposes of such section 225(c)(8), in the case of any
individual entitled to benefits based on disability (as so
defined) for the first month ending after 180 days after the
date of the enactment of this Act, such month shall be
treated as such individual's first month of entitlement to
such benefits.
(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 apply the criteria described in
subparagraph (A) with respect to services performed by any
individual without regard to the legality of such
services.''.
(B) 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), by adding at the end the following:
``In the case of an individual entitled to 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 such individual under this
title.''; 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 addition is a
contributing factor material to the Secretary's determination
that the individual is disabled) is entitled to benefits
under this title by reason of disability.''.
(C) Effective date.--The amendments made by subparagraphs
(A) and (B) shall apply with respect to benefits for 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)) 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 entitled to 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 State or local government agency whose mission is
to carry out income maintenance, social service, or health
care-related activities; or
``(III) a State or local government agency with fiduciary
responsibilities,
(or a designee of such an agency if the Secretary deems it
appropriate), unless the Secretary determines that selection
of such an agency would not 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.--Section
1631(a)(2)(D) of such Act (42 U.S.C. 1383(a)(2)(D)) is
amended--
(i) in clause (i)--
(I) by striking ``exceed the lesser of--'' and inserting
``exceed--''; and
(II) by striking subclauses (I) and (II) and inserting the
following:
``(I) in any case in which an individual is entitled to
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, 10 percent of the monthly benefit involved, or
``(II) in any other case, the lesser of--
``(aa) 10 percent of the monthly benefit involved, or
``(bb) $25.00 per month.'';
(ii) in clause (ii)--
(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); and
(iii) by striking clause (iv), effective July 1, 1994.
(3) Nonpayment or termination of benefits.--
(A) In general.--Section 1611(e)(3) of such Act (42 U.S.C.
1382(e)(3)), is amended by redesignating subparagraph (B) as
subparagraph (C) and by inserting after subparagraph (A) the
following:
``(B)(i) Notwithstanding any other provision of this title,
in the case of any individual entitled to 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 such individual is disabled
and such individual is determined by the Secretary not to be
in compliance with the requirements of this subparagraph for
a month, such benefits shall be suspended for a period
commencing with such month and 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
requirements 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 the individual in such month undergoes any medical
or psychological treatment that may be appropriate, for the
individual's condition diagnosed as substance abuse or
alcohol abuse and for the stage of the individual's
rehabilitation, at an institution or facility approved for
purposes of this subparagraph by the Secretary, and complies
in such month with the terms, conditions, and requirements of
such treatment and with requirements imposed by the Secretary
under subparagraph (C).
``(II) An individual described in clause (i) shall not be
determined to be not in compliance with the requirements of
this subparagraph for a month if access by such individual to
such treatment is not reasonably available for the month, as
determined under 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 shall not be an eligible individual
for purposes of this title for the 12-month period that
begins with the end of any period of 12 consecutive months
for which the benefits of the individual under this title
have been suspended by reason of this subparagraph.
``(v) In the case of any individual entitled to benefits
under this title by reason of disability, if alcoholism or
drug addiction is a contributing factor material to the
Secretary's determination that such individual is disabled,
such individual may not be entitled to such benefits by
reason of disability (or any past-due benefits under such
entitlement) for any month after the 36-month period
beginning with such individual's first month of such
entitlement, notwithstanding section 1619(a).
``(vi)(I) The Secretary shall not, in a month, pay to an
individual described in clause (i) benefits under this title
the payment of which is past due, in an amount that exceeds
the amount of benefits under this title which are payable to
the individual for the month and the payment of which is not
past due.
``(II) As used in subclause (I) of this clause, the term
`benefits under this title' includes supplementary payments
of the type described in section 1616(a) and payments
pursuant to an agreement entered into under section 212(a) of
Public Law 93-66.''.
(B) Referral, monitoring, and treatment.--Section
1611(e)(3)(C) of such Act (42 U.S.C. 1382(e)(3)(C)), as so
designated by the amendment made by subparagraph (A) of this
paragraph, is amended--
(i) by adding at the end the following: ``Each such annual
report shall include the number and percentage of such
individuals who did not receive regular drug testing during
the year covered by the report.'';
(ii) by inserting ``(i)'' after ``(C)''; 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 medical or
psychological treatment under this subparagraph; and
``(II) establishing guidelines to be used to review and
evaluate their compliance, including measures of the progress
of participants in such programs.
``(iii)(I) For purposes of carrying out the requirements of
clauses (i) and (ii), the Secretary shall establish in each
State a referral and monitoring agency for the State.
``(II) Each referral and monitoring agency for a State
shall--
``(aa) identify appropriate placements, for individuals
residing in the State who are entitled to 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 (B)(ii)(I);
``(bb) refer such individuals to such placements for such
treatment; and
``(cc) monitor compliance with the requirements of
subparagraph (B) by individuals who are referred by the
agency to such placements, and promptly report to the
Secretary any failure to comply with such requirements.''.
(C) 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 section 1611(e)(3)(B) shall be treated, for
purposes of title XIX, as receiving benefits under this title
for such month.''.
(D) Conforming amendments.--Section 1611(e)(3) of such Act
(42 U.S.C. 1382(e)(3)), as amended by subparagraphs (A) and
(B) of this paragraph, is amended--
(i) in subparagraph (A), by striking ``(B)'' and inserting
``(C)''; and
(ii) in subparagraph (C), by inserting ``or (B)'' after
``(A)''.
(E) Effective date.--
(i) In general.--Except as provided in clauses (ii) and
(iii), the amendments made by this paragraph shall apply with
respect to benefits for months beginning after 180 days after
the date of the enactment of this Act.
(ii) Time limitation on benefits.--Section 1611(e)(3)(B)(v)
of the Social Security Act (as added by the amendment made by
subparagraph (A) of this paragraph) shall apply with respect
to benefits for months ending after 180 days after the date
of the enactment of this Act, and, for purposes of such
section, in the case of any individual entitled to benefits
by reason of disability for the first month ending after 180
days after the date of the enactment of this Act, such month
shall be treated as such individual's first month of
entitlement to such benefits.
(iii) Establishment of referral and monitoring agencies.--
Section 1611(e)(3)(C)(iii) of the Social Security Act (as
added by the amendment made by subparagraph (B)(iii) of this
paragraph) shall take effect 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) Effective Date.--The amendments made by the preceding
provisions of this section shall apply to benefits payable
for months beginning 180 or more days after the date of the
enactment of this Act.
(d) 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.
(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. 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. 203. EXPLICIT REQUIREMENTS FOR MAINTENANCE OF TELEPHONE
ACCESS TO LOCAL OFFICES OF THE SOCIAL SECURITY
ADMINISTRATION.
(a) Maintenance of Service to Local Offices.--
(1) In general.--Section 5110(a) of the Omnibus Budget
Reconciliation Act of 1990 (104 Stat. 1388-272) is amended by
adding at the end the following new sentence: ``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.''.
(2) Effective date.--The Secretary of Health and Human
Services shall ensure that the requirements of the amendment
made by paragraph (1) are carried out no later than 90 days
after the date of the enactment of this Act.
(3) GAO report.--The Comptroller General of the United
States shall make an independent determination of the number
of telephone lines to each local office of the Social
Security Administration which are in place as of 90 days
after the enactment of this Act and shall report his findings
to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate no
later than 150 days after the date of the enactment of this
Act.
(b) Maintenance of Toll-Free Telephone Number Service.--The
Secretary of Health and Human Services shall ensure that
toll-free telephone service provided by the Social Security
Administration is maintained at a level which is at least
equal to that in effect on the date of the enactment of this
Act.
SEC. 204. 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 1995, and the adjusted amount
determined under section 218(c)(8)(B) for any subsequent year
with respect to service performed during such subsequent
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 1995, and the adjusted amount
determined under section 218(c)(8)(B) of the Social Security
Act for any subsequent year with respect to service performed
during such subsequent 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 1995, and the adjusted
amount determined under section 218(c)(8)(B) for any
subsequent year with respect to service performed during such
subsequent 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 1995, and the adjusted amount determined under section
218(c)(8)(B) of the Social Security Act for any subsequent
year with respect to service performed during such subsequent
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 1995, and the adjusted
amount determined under subparagraph (B) for any subsequent
year with respect to service performed during such subsequent
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 1995, 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, 1993 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. 205. 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) Effective Date.--The amendments made by subsection (a)
shall take effect on the date of the enactment of this Act.
SEC. 206. AUTHORIZATION FOR ALL STATES TO EXTEND COVERAGE TO
STATE AND LOCAL POLICEMEN AND FIREMEN 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. 207. 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 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. 208. 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 January 1995.
SEC. 209. 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
210(a) of this Act) and section 215(d)(3) of such Act (as
amended by section 210(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 January 1995.
SEC. 210. 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. 211. 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 January 1995.
SEC. 212. AUTHORIZATION FOR DISCLOSURE BY THE SECRETARY OF
HEALTH AND HUMAN SERVICES OF 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. 213. MISUSE OF SYMBOLS, EMBLEMS, OR NAMES IN REFERENCE
TO SOCIAL SECURITY PROGRAMS AND AGENCIES.
(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
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 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'', and by striking ``or of the Health Care Financing
Administration''.
(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.--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, 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 Survivor's Insurance Trust Fund.''.
(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 shall be
enforced through the Office of Inspector General of the
Department of Health and Human Services.''.
(k) Annual Reports.--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 subsection:
``(e) The Secretary shall include in the annual report
submitted pursuant to section 704 a report on the operation
of this section during the year covered by such annual
report. Such report shall specify--
``(1) the number of complaints of violations of this
section received by the Social Security Administration during
the year,
``(2) the number of cases in which a notice of violation of
this section was sent by the Social Security Administration
during the year requesting that an individual cease
activities in violation of this section,
``(3) the number of complaints of violations of this
section referred by the Social Security Administration to the
Inspector General in the Department of Health and Human
Services during the year,
``(4) the number of investigations of violations of this
section undertaken by the Inspector General during the year,
``(5) the number of cases in which a demand letter was sent
during the year assessing a civil money penalty under this
section,
``(6) the total amount of civil money penalties assessed
under this section during the year,
``(7) the number of requests for hearings filed during the
year pursuant to subsection (c)(1) of this section and
section 1128A(c)(2),
``(8) the disposition during such year of hearings filed
pursuant to sections 1140(c)(1) and 1128A(c)(2), and
``(9) the total amount of civil money penalties under this
section deposited into the Federal Old-Age and Survivors
Insurance Trust Fund during the year.''.
(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.--The amendments made by this section
shall apply with respect to violations occurring after the
date of the enactment of this Act.
SEC. 214. 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. 215. 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. 216. 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. 217. 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. 218. 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. 219. 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. 220. COVERAGE UNDER FICA OF FEDERAL EMPLOYEES
TRANSFERRED TEMPORARILY TO INTERNATIONAL
ORGANIZATIONS.
(a) Treament 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. 221. EXTEND 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. 222. STUDY OF RISING COSTS OF DISABILITY INSURANCE
BENEFITS.
(a) In General.--As soon as practicable after the date of
the enactment of this Act, the Secretary of Health and Human
Services shall conduct a comprehensive study of the reasons
for rising costs payable from the Federal Disability
Insurance Trust Fund.
(b) Matters to Be Included in Study.--In conducting the
study under this section, the Secretary shall--
(1) determine the relative importance of the following
factors in increasing the costs payable from the Trust Fund:
(A) increased numbers of applications for benefits;
(B) higher rates of benefit allowances; and
(C) decreased rates of benefit terminations; and
(2) identify, to the extent possible, underlying social,
economic, demographic, programmatic, and other trends
responsible for changes in disability benefit applications,
allowances, and terminations.
(c) Report.--Not later than December 31, 1994, the
Secretary shall transmit a report to the Committee on Ways
and Means of the House of Representatives and the Committee
on Finance of the Senate setting forth the results of the
study conducted under this section, together with any
recommendations for legislative changes which the Secretary
determines appropriate.
SEC. 223. 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,
(v) social insurance (including health insurance), and
(vi) 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 (including the program of medical
assistance under title XIX of such Act);
(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 increae 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) the feasibility of providing retroactive supplemental
security income benefits pursuant to the decision in Sullivan
v. Zebley, 110 S. Ct. 2658 (1990), on a prorated basis or by
means of a packaged trust;
(E) 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
(F) 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. 224. DISREGARD DEEMED INCOME AND RESOURCES OF INELIGIBLE
SPOUSE IN DETERMINING CONTINUED ELIGIBILITY
UNDER SECTION 1619(b).
(a) In General.--Section 1619(b)(2) of the Social Security
Act (42 U.S.C. 1382h(b)(2)) is amended by adding at the end
the following:
``(C)(i)(I) For purposes of paragraph (1), in determining
the earnings of an individual whose spouse is not an eligible
individual, there shall be disregarded the net income of the
spouse to the extent such net income does not exceed an
amount equal to twice the threshold amount determined for the
individual.
``(II) As used in subclause (I), the term `threshold
amount' means, with respect to an individual--
``(aa) $85, plus twice the amount of benefits payable under
this title (including federally administered State
supplementary payments) to an individual who is living in his
or her own household and who has no other income, plus the
average amount expended per individual, under the State plan
approved under title XIX by the State in which the individual
resides, on individuals who are recipients of benefits under
this title by reason of disability; or
``(bb) if the gross earnings of the individual exceeds the
amount described in item (aa), the amount that would be
sufficient to allow the individual to provide for himself or
herself a reasonable equivalent of benefits and services
described in paragraph (1)(D).
``(ii) For purposes of paragraph (1)(A), in determining the
resources of an individual whose spouse is not an eligible
individual, there shall be disregarded the resources of the
spouse to the extent the amount of such resources does not
exceed the community spouse resource allowance (as defined in
section 1924(f)(2)) of the State in which the individual
resides.''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect on October 1, 1995.
SEC. 225. PLANS FOR ACHIEVING SELF-SUPPORT NOT DISAPPROVED
WITHIN 60 DAYS TO BE DEEMED APPROVED.
(a) Amendments to Income Exclusion Rules.--Section
1612(b)(4) of the Social Security Act (42 U.S.C.
1382a(b)(4)(A)) is amended in each of subparagraphs (A) and
(B) by inserting ``and, for purposes of this clause, a
completed plan for achieving self-support which is not
disapproved by the Board within 60 days after the date of
submission shall be deemed to be approved by the Board until
subsequently disapproved by the Board (with appropriate
notification to the individual),'' after ``plan,''.
(b) Amendment to Resource Exclusion Rule.--Section
1613(a)(4) of such Act (42 U.S.C. 1382b(a)(4)) is amended by
inserting ``, and, for purposes of this paragraph, a
completed plan for achieving self-support which is not
disapproved by the Board within 60 days after the date of
submission shall be deemed to be approved by the Board until
6 months after subsequently disapproved by the Board (with
appropriate notification to the individual)'' after ``such
plan''.
(c) Effective Date.--The amendments made by this section
shall take effect on January 1, 1995.
SEC. 226. TEMPORARY AUTHORITY TO APPROVE A LIMITED NUMBER OF
PLANS FOR ACHIEVING SELF-SUPPORT THAT INCLUDE
HOUSING GOALS.
(a) In General.--During the 42-month period that begins on
January 1, 1995, the Board may, under title XVI of the Social
Security Act, approve not more than 20 percent of the plans
for achieving self-support that include a housing goal.
(b) Report.--Within 12 months after the end of the 5-year
period that begins on January 1, 1995, the Board shall submit
to the Congress a report on the activities under subsection
(a).
SEC. 227. 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 Board shall establish by regulation time limits
and other criteria related to individuals' plans for
achieving self-support, that take into account the difficulty
of achieving self-support based on the needs of individuals
and the goals of the plan.''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect on January 1, 1995.
SEC. 228. TREATMENT OF CERTAIN GRANT, SCHOLARSHIP, OR
FELLOWSHIP INCOME AS EARNED INCOME FOR SSI
PURPOSES.
(a) In General.--Section 1612(a)(1) of the Social Security
Act (42 U.S.C. 1382a(a)(1)) is amended--
(1) by striking ``and'' at the end of subparagraph (D); and
(2) by adding at the end the following:
``(F) any grant, scholarship, or fellowship.''.
(b) Effective Date.--The amendments made by subsection (a)
shall apply to eligibility and benefit determinations for any
month that begins after the 2nd month after the month in
which this Act is enacted.
SEC. 229. 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) 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 Board that
the absence of the individual from the United States is--
``(i) temporary; and
``(ii) 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.''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect on January 1, 1995.
SEC. 230. 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. 231. EXPANSION OF THE AUTHORITY OF THE SOCIAL SECURITY
ADMINISTRATION TO PREVENT, DETECT, AND
TERMINATE FRAUDULENT CLAIMS FOR SSI BENEFITS.
(a) Prevention of Fraud in the SSI Program by Translators
of Foreign Languages.--
(1) In general.--Section 1631(e) of the Social Security 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 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) Effective date.--The amendment made by paragraph (1)
shall take effect on October 1, 1994.
(b) Civil Monetary Penalties, Assessments, and Exclusions
for Title XVI.--
(1) In general.--Title XI of the Social Security Act (42
U.S.C. 1301-1320b-14) is amended by inserting after section
1128B the following:
``SEC. 1129. CIVIL MONETARY PENALTIES AND ASSESSMENTS FOR
TITLE XVI.
``(a) 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 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
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 Board may make
a determination in the same proceeding to exclude the person
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.
``(b)(1) The Board may initiate a proceeding to determine
whether to impose a civil money penalty, assessment, or
exclusion under subsection (a) only as authorized by the
Attorney General pursuant to procedures agreed upon by the
Board and the Attorney General. The Board 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 Board 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 Board 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 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, failing to
defend an action, or 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 the amount or scope of any penalty,
assessment, or exclusion imposed pursuant to this section,
the Board 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 Board 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 Board'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 Board,
and thereupon the Board 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 Board and enforcing the same to the
extent that such order is affirmed or modified. No objection
that has not been urged before the Board 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 Board 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 Board, the court may order such additional evidence to be
taken before the Board and to be made a part of the record.
The Board may modify its findings as to the facts, or make
new findings, by reason of additional evidence so taken and
filed, and the Board 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 his
recommendations, if any, for the modification or setting
aside of his original order.
``(3) Upon the filing of the record with the Board's
original or modified order, 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 Board 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 Board;
``(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) by decrease of any payment under title XVI to which
the person is entitled, notwithstanding section 207 of this
Act, as made applicable to this title 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.
``(f) A determination by the Board to impose a penalty,
assessment, or exclusion under this section 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 Board 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 and
assessment imposed under this section.
``(g) Whenever the Board's determination to impose a
penalty, assessment, or exclusion under this section with
respect to a medical provider or physician becomes final, the
provisions of section 1128A(h) shall apply.
``(h) Whenever the Board 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 Board 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 Board may delegate the authority granted by section
205(d) (as made applicable to this section) to the Inspector
General of the Department of Health and Human Services for
purposes of any investigation under this section.
``(2) The Board may delegate authority granted under this
section to the Inspector General of the Social Security
Administration.
``(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, assessments, and
exclusions under this section 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 ``, section 1128B, or section 1129'';
(B) in subsection (b)(8)(B)(ii), by inserting ``and section
1129'' after ``section 1128A'';
(C) in subsection (c)(1), by striking ``or under section
1128A'' and inserting ``, section 1128A, or section 1129'';
(D) in subsection (c)(3)(A), by inserting ``or section
1129'' after ``section 1128A'';
(E) in subsection (d)(1), by striking ``and section 1128A''
and inserting ``, section 1128A, and section 1129'';
(F) in subsection (d)(2)(A), by striking ``or section
1128A'' and inserting ``, section 1128A, or section 1129'';
(G) in subsection (e)(1), by striking ``or section 1128A''
and inserting ``, section 1128A, or section 1129'';
(H) in subsection (f)(3), by inserting ``, 1129,'' after
``sections 1128A'';
(I) in subsection (g)(1), by striking ``or section 1128A''
each place such term appears and inserting ``, section 1128A,
or section 1129'';
(J) in subsection (g)(2)(A), by inserting ``and section
1129(a)'' after ``section 1128A(a)''; and
(K) in subsection (h), by striking ``1128A and 1128B'' and
inserting ``1128A, 1128B, and 1129''.
(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
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 payee under section 1631(a)(2).''.
(d) Authority to Redetermine Eligibility in Disability
Cases if Fraud is Involved, and to Terminate Benefits if
There is Insufficient Reliable Evidence of Disability.--
(1) In general.--Section 1631(e) of the Social Security Act
(42 U.S.C. 1383(e)) is amended by adding at the end the
following:
``(6)(A) The Board shall immediately redetermine the
eligibility of an individual for benefits under this title by
reason of disability, disregarding any unreliable evidence of
disability, if there is reason to believe that fraud 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 redetermining such eligibility would
jeopardize the criminal prosecution of any person who is a
subject of the investigation from which the information is
derived.
``(B) If, after redetermining the eligibility of an
individual for benefits under this title by reason of
disability, the Board determines that there is insufficient
reliable evidence of disability, the Board may terminate such
eligibility.''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect on October 1, 1994, and shall apply to
eligibility determinations made before, on, or after such
date.
(e) Availability of Recipient Identifying Information From
the Inspector General, Social Security Administration.--
(1) In general.--Section 1631(e) of the Social Security Act
(42 U.S.C. 1383(e)), as amended by subsection (d) of this
section, is amended by adding at the end the following:
``(7) As soon as the Inspector General, Social Security
Administration, has reason to believe that fraud was involved
in the application of a recipient for benefits under this
title, the Inspector General shall make available to the
Board information identifying the recipient, 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 or redetermining the
eligibility of the recipient 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 the preceding provisions
of this Act, is amended by adding at the end the following:
``(8) The Board shall request the Immigration and
Naturalization Service and the Centers for Disease Control to
provide the Board with whatever medical information either
such entity has with respect to any alien who has applied for
benefits under this title to the extent that the information
is relevant to any determination relating to such
eligibility.''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect on October 1, 1994.
(g) Annual Reports on Reviews of SSI Cases.--The Board
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 exent to which the Board has
exercised its authority to review supplemental security
income cases under title XVI of the Social Security Act, and
the extent to which the cases reviewed were those that
involved a high likelihood or probability of fraud.
SEC. 232. DISABILITY REVIEW REQUIRED FOR SSI RECIPIENTS WHO
ARE 18 YEARS OF AGE.
(a) In General.--Section 1614(a)(3)(G) of the Social
Security Act (42 U.S.C. 1382c(a)(3)(G)) is amended--
(1) by inserting ``(i)'' after ``(G)''; and
(2) by adding after and below the end the following:
``(ii)(I) During the 1-year period that begins on the date
a recipient of benefits under this title by reason of
disability attains 18 years of age, the applicable State
agency or the Board (as may be appropriate) shall redetermine
the eligibility of the recipient for such benefits by reason
of disability, by applying the criteria used in determining
eligibility for such benefits of applicants who have attained
18 years of age.
``(II) A review under subclause (I) of this clause shall be
considered a substitute for a review required under clause
(i).''.
(b) Effective Date.--The amendments made by subsection (a)
shall apply to individuals who attain 18 years of age in or
after the 9th month after the month in which this Act is
enacted.
SEC. 233. CONTINUING DISABILITY REVIEWS.
(a) In General.--Section 1614(a)(3)(G) of such Act (42
U.S.C. 1382c(a)(3)(G)) is amended by inserting ``221(i),''
after ``221(h),''.
(b) Effective Date.--The amendment made by subsection (A)
shall take effect on October 1, 1995.
SEC. 234. 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 taken into
account to the extent provided under the rules applicable in
cases before the Secretary.''.
(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 section
shall take effect as if included in the provisions of the
Omnibus Budget Reconciliation Act of 1990 to which such
amendment relates.
(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 subsection (a) shall be
effective with respect to the determination of the
contribution and benefit base for years after 1994.
(B) The amendment made by subsection (b) shall be effective
with respect to the determination of the exempt amounts
applicable to any taxable year ending after 1994.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Illinois [Mr. Rostenkowski] will be recognized for 20 minutes, and the
gentleman from Texas [Mr. Archer] will be recognized for 20 minutes.
The Chair recognizes the gentleman from Illinois [Mr. Rostenkowski].
Mr. ROSTENKOWSKI. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, the Committee on Ways and Means brings before the House
today H.R. 4277, a bill making the Social Security Administration an
independent agency and making other needed improvements in the Social
Security and SSI programs.
First, the bill creates an independent Social Security
Administration. This legislation has been a long time in coming. In the
House, we have acted on this measure three times in the past. Recently,
the Senate has also acted, approving an independent agency bill just 2
months ago.
This bill takes an important step toward restoring confidence in an
agency which was decimated during the late 1980's. During the two
previous administrations, the agency was starved of resources, and its
staff was cut by over 20 percent. As a result of these actions,
disability applications piled up and the quality of service to the
public declined.
The Clinton administration has done an excellent job working to
return the agency to world class service--but it has been an uphill
battle. More remains to be done.
As an independent agency, SSA can focus on the goal of improving
service; insulate itself from the political pressures under which it
operated in the 1980's; and return to the stature it enjoyed in the
past.
H.R. 4277 also reforms the payments of both Social Security and SSI
disability benefits to drug addicts and alcoholics. The bill would
place strict limitations on benefits to such individuals and would
establish safeguards to ensure that benefits, when paid, are not used
to support an addiction.
The legislation also would require that individuals participate in a
drug treatment program as a condition of receiving benefits.
Progressive sanctions--in the form of lost benefits--would be applied
to those who do not comply. Moreover, a total 3-year limit would be
placed on benefits to drug addicts and alcoholics.
The bill also addresses fraud and abuse issues in the SSI program by
expanding the authority of SSA to prevent, detect, and terminate
fraudulent claims for SSI benefits. As a method of prevention, SSA
would be required to certify individuals who serve as third-party
translators.
In addition, persons found guilty of committing fraud would be
subject to to civil money penalties and criminal felony sanctions. The
legislation would also SSA to review all disability cases involving
fraud, using identification information from the inspector general and
immigrant medical information from the immigration and Naturalization
Service.
Finally, the legislation includes a number of other improvements in
the Social Security program: it increases the FICA exemption for
election workers and makes permanent the transfer of certain revenues
to the railroad retirement account.
Mr. Speaker, this legislation includes important changes which will
increase public confidence in the Social Security and SSI programs.
Moreover, it will reduce the unified deficit by $2.3 billion over the
next 5 years. I urge my colleagues to give it their support.
{time} 1330
Mr. Speaker, I reserve the balance of my time.
Mr. ARCHER. Mr. Speaker, I yield myself such time as I may consume.
(Mr. ARCHER asked and was given permission to revise and extend his
remarks.)
Mr. ARCHER. Mr. Speaker, I sincerely hope that the action we are
about to set into motion on this bill at long last results in final
passage of legislation to make Social Security an independent agency.
In my view, this legislation is long, long overdue.
Mr. Speaker, shoring up the Social Security System, has been one of
my chief legislative priorities since I was elected to Congress. That
is the reason I chose to become the ranking Republican on the Social
Security Subcommittee when it was first created.
It is also the reason why I sponsored one of the first House bills
creating an independent Social Security agency with my colleague from
Austin, Mr. Pickle, who served as the subcommittee's first chairman.
That bill was one of the three to have overwhelmingly been passed in
the House over the last decade. As sometimes happens around here,
however, the House and Senate were unable to get together on a final
product.
This time, I strongly hope we in fact see the issue finally resolved.
First, because freeing Social Security from the HHS bureaucracy is
critical to its survival as a vital public service agency.
Making Social Security independent is not a panacea, but I believe
that freeing Social Security from the layers of bureaucracy imposed
upon it by its current structure within HHS will go a long way in
making it less political and both more responsive and more accountable.
I believe that independence from HHS simply will allow Social
Security to manage more of its own resources, and with better results.
Mr. Speaker, the 1983 Social Security Commission, on which I served,
recommended a study to make Social Security an independent agency. That
recommendation was included in the 1983 Social Security Amendments.
The study itself, which was headed up by former General Accounting
Office Comptroller General Elmer Staats, recommended that an
independent Social Security Administration be run by a single
administrator, backed by an advisory board.
While I strongly support this bill, I would like to note that I would
prefer the form of administrative leadership specified in the bill of
the gentleman from Kentucky [Mr. Bunning], the ranking Republican on
the Social Security Subcommittee, whose efforts on this issue I
commend. His bill would establish the same form of leadership as was
endorsed by the experts on the Staats panel.
Mr. Speaker, the bill contains other provisions that are important to
average Americans and that are also long overdue. Although I would have
liked stronger provisions dealing with payments to drug addicts and
alcoholics, I am confident that this is just the beginning, and I look
forward to working with the leadership of the subcommittees and
committee to take further action.
The laxness of the current program is an affront to hard-working
American taxpayers and must be corrected.
Mr. Speaker, I join Chairman Rostenkowski, Subcommittee Chairman
Jacobs and our Republican leader on Social Security, the gentleman from
Kentucky, Mr. Bunning, in strongly supporting this bill.
Mr. Speaker, I yield the balance of my time to the gentleman from
Kentucky [Mr. Bunning], and I ask unanimous consent that he be
permitted to yield time to other Members.
The SPEAKER pro tempore (Mr. Mazzoli). Is there objection to the
request of the gentleman from Texas?
There was no objection.
The SPEAKER pro tempore. The gentleman from Kentucky [Mr. Bunning]
will control the remainder of the time for the minority.
Mr. ROSTENKOWSKI. Mr. Speaker, I make the same unanimous-consent
request that the gentleman from Texas [Mr. Archer] made on behalf of
the gentleman from Indiana [Mr. Jacobs] the chairman of the
Subcommittee on Social Security.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Illinois?
There was no objection.
The SPEAKER pro tempore. The gentleman from Indiana [Mr. Jacobs] will
control the balance of the time on behalf of the majority.
Mr. JACOBS. Mr. Speaker, I thank the chairman of the Committee on
Ways and Means, and I yield myself such time as I may consume.
Naming Members of Congress as receiving credit on legislation gets
run into the ground, but I am going to do it now. This is the first
time I have ever done it, but this is a special occasion.
This proposal has been before the Congress for more than a decade. It
makes all the sense in the world. In essence, to put it in plain
English, it allows the Social security system to mind its own business
without meddling for any reason, other than to perform its mission,
into the affairs of anybody else.
The gentleman from Texas [Mr. Pickle] and the gentleman from Texas
[Mr. Archer] deserve credit. As a Hoosier, I hate to concentrate all
the praise in that direction, but that is the way it came out. Both Mr.
Pickle and Mr. Archer have labored long and hard in this vineyard.
Chairman Rostenkowski has been supportive at every turn in the past.
The gentleman from Kentucky [Mr. Bunning] and the gentleman from New
York [Mr. Moynihan], chairman of the Senate Finance Committee, have
worked unstintingly toward this end. And I might take this occasion--in
fact, I think I will--to say that working with the gentleman from
Kentucky [Mr. Bunning] has been a real joy, particularly since we have
managed to have the honor really of steering it into its final harbor.
I would have to say that in terms of the Record and for the sake of
history we have had a series of Presidents who did not like this idea,
and now we have a President who has endorsed the idea. So on behalf of
everybody who believes it makes common sense, I express my gratitude to
the President as well.
Mr. Speaker, I reserve the balance of my time.
Mr. BUNNING. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, the bill we are considering right now, H.R. 4277, is,
without any question, the most substantial piece of Social Security
legislation I have worked on since I became ranking Republican member
of the Social Security Subcommittee in 1990.
This bill does quite a few things, but the heart and soul of this
bill is independent agency status for the Social Security
Administration. It is long overdue.
As my colleagues know, this body has approved independent agency
legislation three times in the past. But this time is different because
the Senate has approved similar legislation this year. And we are
finally going to make independent agency status for the Social Security
Administration a reality.
Before I comment further on the merits of the bill before us, I would
also like to acknowledge the efforts of several of my colleagues, whose
persistence and hard work on this issue are finally paying off.
First, the ranking Republican on the Ways and Means Committee, the
gentleman from Texas [Mr. Archer], who served as the first ranking
Republican on the Social Security Subcommittee, has been an unflagging
supporter of making Social Security independent for over a decade.
The chairman of the Ways and Means Committee, Mr. Rostenkowski, is to
be commended for his leadership in bringing this legislation to the
floor.
The gentleman from Texas [Mr. Pickle] deserves a great deal of credit
for his early efforts to bring this important change about as the first
chairman of the Social Security Subcommittee.
And finally, Mr. Jacobs of Indiana, the chairman of the Social
Security Subcommittee with whom it has been my distinct pleasure to
work closely since 1990, has done an outstanding job bringing this bill
together.
I appreciate their leadership and wok on this issue.
Mr. Speaker, I have been convinced for some time that if Social
Security is ever to operate efficiently, and give taxpaying Americans
the service they deserve, it must be made independent of the Department
of Health and Human Services.
Social Security touches the life of virtually every American citizen.
It deserves more than being a sideshow in the basement of a huge
bureaucracy like the Department of Health and Human Services.
In my opinion, making Social Security an independent agency would do
more than anything else we could do to make Social Security more
responsive and more efficient. Independence will also do a great deal
to insulate the Social Security Program from political pressures and
budgetary games.
If there were ever a question in my mind about the need for an
independent agency, it would have been answered very forcefully by the
recent developments regarding the decision of HHS appointees to use
Social Security trust funds to pay employee bonuses instead of to
process backlogged disability claims.
That outrageous incident when one high-level official received a
$9,200 bonus after being with the agency less than 3 months, is proof
enough for me that the folks who run Health and Human Services are not
sufficiently sensitive to the special, near-sacred status of the Social
Security trust funds.
Independent status will give us a chance to improve oversight and it
will clarify and strengthen the lines of responsibility within the
agency so that outrages like these will not be repeated.
While I strongly support making social Security independent of the
Department of Health and Human Services, I would have preferred the
form of administrative leadership structure specified in the bill I
introduced in April of last year--a single Administrator supported by a
seven-member part-time board instead of a three-member board as
outlined in this bill.
However, I am confident that this matter of organizational structure
will be thoroughly reviewed and reconsidered in conference and that a
workable solution will emerge.
In any event, independent agency status for the Social Security
Administration will do more to strengthen and protect the Social
Security Program than anything else we could possibly do.
As I mentioned earlier, this bill contains quite a few other
provisions. I will not mention them all. But I would like to comment on
one other significant portion of the bill, the provisions which tighten
up payment of benefits to drug addicts and alcoholics.
As it stands, many recipients of Social Security disability benefits
are using their benefits to finance ongoing addictions. This is
intolerable.
The purpose of Social Security disability is to provide financial
assistance to the disabled until they can recover from that disability
and return to productive lives. It is very difficult for anyone to
recover from anything, if they carry the additional burden of drug or
alcohol addiction.
We cannot allow this to continue. It is not fair to the taxpayers. It
is not fair to the others who depend on the SSDI Program. And it is not
even fair to the disabled addicts and alcoholics themselves.
This bill does require better monitoring of benefits to substance
abusers, it does mandate participation in treatment programs, and it
does terminate benefits to addicts after 36 months.
These are very positive and much needed improvements. I think we
could and should do even more--and I hope that we will return to this
issue in the near future--but this bill is a very good start at
addressing this very serious problem.
This bill is not and should not be controversial. As has already been
mentioned, the House has overwhelmingly passed legislation to make
Social Security an independent agency three times in the past.
The provisions tightening up on benefits to addicts and alcoholics
are pure common sense.
And the other provisions in this bill should all help improve the
efficiency, the fairness, and the responsiveness of the Social Security
Program.
Overall, it is a very good bill--a long-overdue bill--and it deserves
the support of every Member of this body today.
I strongly urge my colleagues to vote for this landmark legislation.
Mr. Speaker, I reserve the balance of my time.
{time} 1340
Mr. JACOBS. Mr. Speaker, we should also give a great deal of credit
to our friend and colleague, the gentleman from Wisconsin [Mr.
Kleczka], who offered the key amendment on drug addiction and alcoholic
addition in the Committee on Ways and Means, a measure that was passed
in no small measure because of the gentleman's unstinting work on the
problem.
Mr. Speaker, I yield 2 minutes to the first chairman of the
Subcommittee on Social Security, the gentleman from Texas [Mr. Pickle].
(Mr. PICKLE asked and was given permission to revise and extend his
remarks.)
Mr. PICKLE. Mr. Speaker, I thank the chairman for yielding.
Mr. Speaker, I rise today in support of H.R. 4277, the Social
Security Administrative Reform Act of 1994. As I would hope all Members
are aware, this legislation would establish the Social Security
Administration as an independent agency, thereby helping to insulate
this vital program from partisan political pressures. The House has
overwhelmingly voted in favor of this provision in the past, and,
earlier this year, the Senate, under the able leadership of Senator
Moynihan, recognized the merits of this approach.
In addition, this bill contains several important provisions which
are the result of investigations by the Subcommittee on Oversight,
including: Preventing fraud by middlemen in obtaining benefits through
the Social Security and SSI disability insurance programs; requiring
periodic continuing disability reviews for people receiving benefits
under the SSI Disability Insurance Program--an amendment by Mr. Herger;
and prohibiting the misuse of symbols, emblems, or names related to the
Social Security Administration, the Health Care Financing
Administration, and the Treasury Department.
Each of these reforms will protect American taxpayers from currently
widespread abuse in these programs which are so important to the
general public welfare. They will prevent the payments of hundreds of
millions of dollars of benefits to those who are not entitled to
benefits. In addition, they will preserve public confidence in the
ability of the Federal Government to properly administer these
programs.
I am pleased to note that these reforms are the result of the
bipartisan efforts of the Members of the Committee. I would
particularly note the leadership of Chairman Andy Jacobs and Harold
Ford who have worked closely on these issues with Amo Houghton, Jim
Bunning, Rick Santorum, and Wally Herger. I strongly urge that Members
of both sides of the aisle come together in support of this important
package of reforms.
Mr. BUNNING. Mr. Speaker, I yield 2 minutes to the gentleman from
Wisconsin [Mr. Roth].
Mr. ROTH. Mr. Speaker, I thank my good friend from Kentucky for
yielding.
Mr. Speaker, I support today's bill to reform our Social Security
System. Under this bill, Social Security will become a separate agency,
walled off from political mischief, to protect the hard-earned benefits
of Social Security recipients. We will also impose some tough
restrictions on drug addicts and alcoholics who abuse their benefits.
Today's bill, while it does not go as far as I would like it to, it
will at least go in the right direction. I urge the Members of Congress
to pass these reforms to protect our Social Security recipients'
benefits and to guarantee Americans a secure retirement.
Mr. Speaker, as chairman of the House Republican Social Security Task
Force, I support this Social Security Administrative Reform Act. Social
Security is a trust between the American people and their Government.
In recent years, that trust has eroded.
First, senior citizens are justifiably upset that political and
budget battles have put their hard-earned Social Security benefits many
times in jeopardy. Why, just last year the Clinton administration
forced through this Congress a $26.5 billion Social Security tax on
Social Security recipients.
The American people are outraged that drug addicts and alcoholics are
spending their supplemental security income and Social Security
disability insurance benefits on drugs and alcohol.
{time} 1350
While the time for solutions is long overdue, today's House action
will take us at least a step in the right direction. Today's bill will
make Social Security an independent agency to protect Americans'
retirement funds from political and budget battles. Every Social
Security beneficiary, both current and future, must be assured that his
and her benefits will be secure and that the program will be
administered fairly and soundly.
By walling off Social Security as an independent agency, Congress
will help to assure the American people that Social Security funds will
be used for Social Security purposes only.
Today's bill also will tighten the rules for drug addicts and
alcoholics who receive these benefits. As I testified before the
subcommittee back in February, the American people are outraged that
our Social Security has degenerated into a cash cow for addicts. This
goes in the right direction in making those corrections.
Mr. JACOBS. Mr. Speaker, I yield 2 minutes to our hard-working
colleague, the gentlewoman from Connecticut [Mrs. Kennelly].
(Mrs. KENNELLY asked and was given permission to revise and extend
her remarks.)
Mrs. KENNELLY. Mr. Speaker, in a world of few guarantees, one should
stand out as inviolate--the promise of Social Security benefits.
We are considering a bill today that will help us make good on this
promise of future security--a bill to make the Social Security
Administration an independent agency.
This bill will put Social Security Administration above the fray. It
will help ensure that policy is made with regard only to beneficiaries.
It will help us keep our promises and our guarantees, and it will help
the men and women who depend on these benefits.
Every time I am at home, I hear from seniors who are concerned about
their benefits, who are worried that changes in Washington may affect
them unnecessarily. This bill will help ensure that their benefits will
be protected and will be there when they need them.
Mr. Speaker, I urge my colleagues to pass this bill. It is long
overdue.
Mr. BUNNING. Mr. Speaker, I yield 2 minutes to the gentleman from
Alabama [Mr. Bachus].
(Mr. BACHUS of Alabama asked and was given permission to revise and
extend his remarks.)
Mr. BACHUS of Alabama. Mr. Speaker, I rise today in full support of
H.R. 4277. I am cosponsor of that legislation, and I want to commend
the gentleman from Indiana [Mr. Jacobs], the gentleman from Kentucky
[Mr. Bunning], the gentleman from Illinois [Mr. Rostenkowski], and the
gentleman from Texas [Mr. Archer], and the gentleman from Texas [Mr.
Pickle] for their fine work.
We must protect our Social Security system from the political
spending practices and gimmickry that we have seen in this Congress and
from this administration. This protection is all the more mandatory in
these days of $300 billion deficits. By making Social Security an
independent agency this legislation will help insulate our Social
Security funds from such mischief.
Americans deserve a return on their investment, an investment they
believe they make when they contribute to Social Security out of every
paycheck. Making Social Security an independent agency is an important
step in assuring that they get that return. And finally, this
legislation will go a great distance in helping ensure that Social
Security is there for our seniors and every working American who
invested in the system.
Mr. Speaker, I have stood on this floor on several occasions to warn
of the impending insolvency of the Social Security Disability Trust
Fund. Today the disability system is already in serious financial
trouble. Unless we in Congress act now, the disability fund will be
totally bankrupt by 1995. Last year alone, the Disability Trust Fund
lost over $3 billion, and is expected to show a deficit of over $118
billion by the year 2002 unless this Congress takes action. The Clinton
administration has requested that $16 billion be diverted from the Old
Age and Survivors Insurance Trust Fund to shore up the Disability Trust
Fund. Mr. Speaker, this is no solution.
Instead, we must have a top to bottom reform of the Social Security
disability system. I see this legislation as a first step in that
process. I commend the gentleman from Indiana [Mr. Jacobs] for offering
it.
I am also very pleased that my amendment requiring the Department of
Health and Human Services to Investigate the causes of the impending
insolvency of the Disability Trust Fund, and make recommendations on
how to correct them, has been included in this bill. I thank the
gentleman from Texas [Mr. Archer] for offering the amendment in
committee on my behalf.
The study, now required by this legislation, is to be completed by
December 31. It will identify problems and offer solutions to make the
Disability Trust Fund sound and solvent. We can not continue to throw
money at this problem, but instead must use this study as a road map to
make additional changes which will be necessary if we are to save the
Disability Trust Fund.
There is no need for us to reach a crisis atmosphere before we act.
There is every need for us to avoid a last-ditch effort in bailing out
the Social Security System. I urge you, pass this important legislation
now.
Mr. JACOBS. Mr. Speaker, I yield 3 minutes to the gentleman from
Wisconsin [Mr. Kleczka], a member on the committee who has worked the
hardest on this addiction problem.
(Mr. KLECZKA asked and was given permission to revise and extend his
remarks.)
Mr. KLECZKA. Mr. Speaker, I rise in support of H.R. 4277 and urge my
colleagues to do the same. I am particularly pleased to see that this
bill addresses the Supplemental Security Income [SSI] Program, which is
in dire need of reform.
In recent months, SSI has been the subject of widespread public
outrage. Reports abound of alcoholics and drug addicts using taxpayer
money to finance their habits and of parents encouraging children to
misbehave in school so they can qualify for benefits.
Clearly, the system is not working and H.R. 4277 takes a much-needed
step toward fixing it. Under current law, substance abusers whose
addictions are serious enough to qualify as disabling can receive SSI
if they are low income. These recipients are required to undergo
treatment and receive benefits through a representative payee. However,
a General Accounting Office study shows that the Social Security
Administration [SSA], which runs the program, is not adequately
tracking these individuals. It can confirm that only 9 percent of these
substance abusers are in treatment. And, a full 84 percent are lost in
the system.
Moreover, a recent Department of Health and Human Services Office of
Inspector General study finds that few SSI recipients leave the program
because of successful treatment. This study, which looked at 196 drug
addicts and alcoholics, found only one case where a recipient left the
rolls due to successful rehabilitation. In fact, the most common reason
for termination of benefits is death. These statistics show a drastic
need for change.
We must balance the need to assist substance abusers who genuinely
want to help themselves with our responsibility to protect valuable
taxpayer dollars from misuse. By providing addicts an opportunity to
rehabilitate, the bill provides such a balance. Included in the bill is
a provision I offered, in conjunction with Mr. Brewster of Oklahoma,
which sets a lifetime limitation of 36 months on the amount of time a
substance abuser can receive disability benefits. This provision sends
a clear message that Federal assistance cannot last forever. And, it
will save taxpayers approximately $940 million over 5 years in the
process of strengthening the program.
When the bill is signed into law, drug addicts and alcoholics will
find it far more difficult to abuse the system. They will not be
permitted to use fellow addicts and bartenders as representative
payees, or safekeepers of their Federal checks. Drug addicts will also
find that they must remain in treatment and pass drug tests if they are
to remain on the program. If they fail to comply with the treatment
requirement, they will be suspended from the program until they
demonstrate compliance. Each successive time they are suspended, they
will have to demonstrate their compliance for a progressively longer
period.
Another provision contained in the bill will look for ways to reduce
fraud and abuse. It calls for a comprehensive study on the possibility
of delivering benefits through the use of modern technology, such as
debit cards, computer systems, and vouchers.
H.R. 4277 also calls for an examination of SSI benefit payments to
children. A Childhood Disability Commission is established to examine
the program; specifically, to consider whether the current system is
the appropriate means of offering our assistance. The question is not
whether we should provide benefits to disabled children, but what is
the best way of doing so?
This bill also contains a provision I authored which mandates reviews
of continuing disability for child recipients as they near adulthood.
These reviews, rarely done now, will use the same eligibility criteria
applied to adults, which evaluates whether the recipient is capable of
earning substantial income.
This legislation is a strong step toward a new and improved SSI.
While the intention of this program is noble in theory, it is failing
miserably in practice. I am hopeful these provisions will protect
valuable taxpayer dollars, while helping recipients become productive
members of our society.
{time} 1400
The SPEAKER pro tempore (Mr. Mazzoli). The gentleman from Kentucky
[Mr. Bunning] has 4 minutes remaining, and the gentleman from Indiana
[Mr. Jacobs] has 7 minutes.
Mr. BUNNING. Mr. Speaker, I yield 2 minutes to the gentleman from
Florida [Mr. Goss].
(Mr. GOSS asked and was given permission to revise and extend his
remarks.)
Mr. GOSS. Mr. Speaker, I thank my friend and distinguished colleague,
the gentleman from the Commonwealth of Kentucky [Mr. Bunning] for
yielding me the time. I congratulate him and the gentleman from Indiana
[Mr. Jacobs] for bringing this legislation forward.
Mr. Speaker, I am from Florida, and when we say the words ``Social
Security'' in my district in Florida, we get a lot of attention
immediately, because we have an awful lot of the Nation's seniors who
have found the quality of life to be terrific, and are living in
Florida, as we all know, and it is the place of choice for our
retirees.
Ironically, as we bring this bill up today, today's Washington Post
reports that more than two-thirds of all Americans do not think Social
Security will survive to pay them benefits. In other words, what they
are saying is that they are going to outlive the Social Security
system. Many of these or most of these, of course, are our younger
workers. They feel they are just shoveling their hard-earned dollars
into a bottomless pit.
Today, with H.R. 4277, we have a chance to implement one commonsense
Social Security amendment to help restore a level of confidence in the
system. We have all seen the reports of the abuses in the SSI and SSDI
programs--how drug-pushers and bartenders are cashing Government-
support checks to fund the addictions of beneficiaries.
``60 Minutes'' did a piece a couple of weeks ago, as everybody knows,
everybody in Congress knows that, I am sure, because if it is like my
district, the phones keep ringing saying, ``Why in the world do you let
things like that happen? Does that really happen? Why don't you fix
it?''
Today's bill in fact will crack down on this type of fraud. It will
put firm limits on benefits to substance abusers. Seniors in my
district who have seen their taxes go up this year and seen their
Medicare get cut, and are seeing predictions of more of those cuts as
we talk about health care reform, and are penalized for returning to
work under the earnings-limitation test, need some good news. They are
sick of the abuses they have been subjected to, and this is some good
news for them.
Again, I think this is overdue good news. This should have been fixed
a long time ago. At a time when the long-term solvency of the system is
in doubt and we have just gotten new reports on that, showing that we
have a larger problem than we had thought we did, taxpayers do not want
to hear any more rhetoric about sacrifice. They want action. They want
constructive change. They want to stop waste and they want to stop
nonsense.
Today we get a start at doing all of those things. I urge support of
this and congratulate the authors.
Mr. BUNNING. Mr. Speaker, I yield 1 minute to the gentleman from
California [Mr. Herger].
Mr. HERGER. Mr. Speaker, I rise in strong support of this
legislation, which makes vitally needed reforms in the SSI disability
and disability insurance programs.
For too long we have allowed our disability programs to endanger the
lives of drug addicts and alcoholics by simply providing them cash to
feed their habits.
Additionally, we have not taken steps to ensure that representative
payees are responsible parties like treatment centers or Government
agencies. As a result, one Denver liquor store owner was collecting
$140,000 annually to run a tab for 40 alcoholics on our disability
rolls.
This legislation make vitally needed reforms to ensure that only
responsible parties are named as representative payees for drug addicts
or alcoholics. It also will end the practice of making huge lump sum
payments to addicts. Finally, it imposes a lifetime limit of 36 months
for disability benefits resulting from substance abuse. Treatment
providers have told me this is critical to ensuring that addicts have
an incentive for beating their habit and sticking with their
rehabilitation programs.
Mr. Speaker, I urge the immediate adoption of this legislation.
Mr. JACOBS. Mr. Speaker, I yield 2 minutes to my eloquent colleague,
the sheriff, the gentleman from Ohio [Mr. Traficant].
(Mr. TRAFICANT asked and was given permission to revise and extend
his remarks.)
Mr. TRAFICANT. Mr. Speaker, I support this bill. I believe its
passage is critical for the following reason: A recent General
Accounting Office investigation, IRS, found something that really
startled me. It said that they could not tell where the revenue came
from. All the money was in one big pot, Social Security taxes and
general income taxes.
Furthermore, they said they were astounded by that, and the General
Accounting Office said the Internal Revenue Service system of
bookkeeping and recordkeeping was ``sloppy, sloppy.''
I have had a lot of dealings with the IRS, Mr. Speaker, and the IRS
is anything but sloppy. Let me give my little two cents' worth here. I
do not believe what the IRS is telling us about the Social Security
trust fund. Mr. Speaker, I think those moneys are commingled so they
would, in fact, chase Congress on a wild goose chase.
I believe what the gentleman from Florida [Mr. Goss] said is exactly
correct. I would doubt if our grandchildren will see Social Security. I
could be wrong. I believe the money coming in one door in Social
Security is going out the other right now, and there is a wastebasket
all filled up with IOU's. I want to know. In fact, I have a letter in
there, and if the Committee on Ways and Means would do this Nation a
favor, they would want to know if the social Security trust fund is
what they say it is.
I think we are being ripped off big-time. I think there is a
wastebasket all filled up with IOU's. The Members will not lose it,
their kids will not lose it, but I think our grandchildren will never
see Social Security. I want to know. Show me.
Mr. BUNNING. Mr. Speaker, to close the debate on our side, I yield 1
minute to the gentleman from New York [Mr. Houghton] a member of the
Subcommittee on Social Security of the Committee on Ways and Means.
(Mr. HOUGHTON asked and was given permission to revise and extend his
remarks.)
Mr. HOUGHTON. Mr. Speaker, I thank the gentleman for yielding time to
me.
Mr. Speaker, I think 4277, this bill, makes a lot of sense. I think
it is going to pass and it is right. I say so for two reasons. First of
all, it is entirely appropriate that this be a separate agency. Its
time has come. There are a lot of questions in our own mind about the
use of Social Security funds. I think this will tighten up the
management, it will do exactly what we want it to do, everybody, not
just us but everybody in the country.
Another thing, it gets at the so-called corruption and the middleman
fraud scheme that we have been dealing with that the gentleman from
Kentucky [Mr. Bunning] mentioned on the Committee on Ways and Means. It
is really not right to have people coming to this country, as we all
did at one point and another, and be taken over by a slick middleman,
and then bilk the system of thousands of dollars for him personally,
take a cut out of this, and say it is right for Social Security. It is
not right. I believe this bill goes a long way to correct that.
From the administration's standpoint, the monetary standpoint, the
management of fraud, I think it is the right thing to do. I urge my
colleagues to support it.
Mr. POMEROY. Mr. Speaker, I am pleased to support legislation making
the Social Security Administration an independent agency.
Social Security is an important trust between Americans and their
Government. It asks for a commitment from workers to contribute--and
promises income assistance in retirement years. Yet the trust is too
often threatened by Washington politics; leaving seniors--and all
Americans--to question whether the Government will hold up its end of
the promise.
Independent agency status will improve administration of Social
Security by enabling the agency to attract and retain talented
leadership. In the past 18 years, Social Security has had 12 different
administrators, often with periods in between when there was no
administrator. With independent status will come increased stature and
stability for Social Security.
As we continue to struggle with the Federal budget, I am concerned
about attempts to balance the budget on the backs of senior citizens
and the disabled. Numerous seniors from North Dakota have contacted me
about their fears of cuts to Social Security. By making Social Security
independent, I believe we send a message to seniors that we recognize
the importance of this program.
Many Americans in the work force today truly believe that Social
Security will not be there for them in their retirement years. I want
to make sure that Social Security is a viable program for generations
to come. Independent status will bolster the public's confidence level
in the agency and the programs it administers.
I look forward to seeing this legislation become law and a reality
for all its supporters.
Mr. ORTON. Mr. Speaker, today I am pleased to vote in favor of H.R.
4277, a bill to create an independent Social Security Administration.
The Social Security system plays a critical role in providing
economic security for millions of elderly Americans struggling to make
ends meet on fixed incomes in an inflationary environment. It is not a
government handout. It is a retirement plan in which individuals
contribute over their working lifetime and receive benefits when they
retire.
The program is financially self-sufficient. It is funded through FICA
contributions, with an annual surplus of $50 billion and a trust fund
that has built up to over $400 billion.
This self-funded, self-sufficient nature of the program distinguishes
itself from most other Federal spending. As a result, it merits
appropriate separate treatment.
For example, I am a strong advocate of balancing the Federal budget,
of making the tough budget cutting choices. I have even drafted my own
balanced-budget amendment. However, in recognition of the self-funding
nature of Social Security, my balanced-budget proposal specifically
exempts Social Security payments from automatic spending cuts in the
event of a deficit.
This is consistent with other recent efforts we have taken to
maintain Social Security against the relentless pressures of budget
cutting. A few years back, we took the step of putting Social Security
off-budget. We have also required annual reports by the Board of
Trustees of the Social Security Trust Fund, to address the long-run
actuarial future of the system.
Today, we are taking the further step of making the Social Security
Administration an independent agency. Currently, the Social Security
Commissioner reports directly to the Secretary of Health and Human
Services. Today's legislative action would instead create an
independent agency, with a full-time, 3-member board.
This heightened status is proper, given the weight and importance of
the Social Security Administration. Therefore, I am pleased to support
this legislation, and urge my colleagues to do the same.
Mr. MFUME. Mr. Speaker, I rise in support of H.R. 4277, which makes
the Social Security Administration an independent agency.
The Social Security Administration is responsible for administering
the Old-Age and Survivors Insurance program and Disability Insurance
program--Social Security--and the Supplemental Security Income [SSI]
program. The Social Security Administration is the ninth largest agency
in the Government. The bill establishes the Social Security
Administration [SSA] as an independent agency, effective October 1,
1995.
The bill gives SSA additional authority to prevent benefit fraud and
increases the penalties against deceptive mass mailings that mimic
official Social Security correspondence.
In my district of Baltimore, the employees of SSA have asked that I
support this measure.
However, Mr. Speaker, my support comes with some reservations.
Specifically, I am concerned that Congress' desire to improve and
advance the productivity and services of the Social Security
Administration, while well-intentioned may not be enough. In addition
to passing this bill, Congress must give the Social Security
Administration the necessary resources to successfully make the
smoother transition to independent status.
Another concern I have stems from the fact that the bill restricts
payment of Disability Insurance [DI] and Supplemental Security Income
[SSI] for persons with drug and alcohol additions. Under current law,
SSI recipients who have substance abuse problems are required to be
paid through a designated second party. Unfortunately, there have been
cases in which the alleged supplier of the drug to the abuser was the
representative payee.
In a provision I support, this bill requires that where possible,
organizations, rather than family or friends, be named as
representative payees for Disability Insurance and Supplemental
Security Income recipients.
However, the bill requires that the Social Security establish
agencies in all 50 States that would find treatment programs for DI and
SSI beneficiaries who are substance abusers, monitor their
participation in the treatment program, and periodically conduct drug
tests to determine if substance abuse problems are continuing. Under
the bill, people with substance abuse problems who are receiving
Disability Insurance would be required to participate in treatment, if
available, in order to receive benefits. Regardless of participation in
the treatment program, DI and SSI benefits to substance abusers would
be cut off after 3 years unless the individual qualifies for benefits
for reason other than the substance abuse problem. This will require
the Social Security agency to become involved in a whole new activity;
drug testing. I have a number of problems with this, but that
discussion is better left for another time.
Mr. Speaker, it is my hope this bill will pass to allow the Social
Security Administration to become an independent agency. It is my
further hope that we recognize the need to give this new Agency
adequate resources to improve and provide better service.
Mr. BORSKI. Mr. Speaker, I rise in strong support of H.R. 4277, the
Social Security Administrative Reform Act.
A few weeks ago, the trustees of the Social Security trust fund
reported that funds for paying benefits will run out in 2029, 7 years
earlier than estimated last year. This report highlights the need for
Congress to make some meaningful changes in the Social Security system.
Today, 9 out of 10 workers contribute payroll taxes to the Social
Security trust fund with the promise that they will get benefit
payments when they retire. It is our responsibility to the American
work force to protect and strengthen the Social Security system to
ensure that the Federal Government keeps this promise to both current
recipient's and future beneficiaries.
H.R. 4277 is a step in this direction. In recent years, the
Government agency that administrators Social Security has been
vulnerable to political and budgetary pressures. There have been
numerous cutbacks in the administration of this program, despite the
growing number of recipients. The result has been increased payment
errors, unanswered phones and a backlog on processing applications.
This legislation would separate the Social Security Administration
from the Department of Health and Human Services [HHS] and make it an
independent agency governed by a Social Security Board. The Board would
be independent and bipartisan, and its members would serve staggered 6-
year terms.
I believe making Social Security an independent agency will free its
operations from short-term political pressure and help restore public
confidence in the Social Security system. I urge all my colleagues to
support this legislation.
Mr. THOMAS of California. Mr. Speaker, I want to express my support
for the new provisions in H.R. 4277. The bill will stop drug addicts
and alcoholics from abusing the Social Security disability and
Supplementary Security income programs.
This legislation is important to my district and to the country.
People have been outraged to find that addicts who were supposed to be
getting treatment to end their addiction were able to use taxpayer
dollars to subsidize their habits. After reports of addicts being
arrested with literally thousands of dollars of Social Security
benefits in their possession began appearing in local newspapers, I met
with government officials and others to seek new ways to prevent
addicts from using Social Security benefits to feed their habits. I
introduced a bill, H.R. 1712, in light of the suggestions I received
and I am pleased to say that H.R. 4277 includes several of the
important changes I recommended.
H.R. 4277 cracks down on addicts who skip treatment, following my
proposal's suggestion that increasing penalties be used to discourage
addicts from thinking they can keep using drugs when they are supposed
to be in treatment seeking a cure. Addicts who get caught continuing to
use drugs are subjected to penalties. The first time they're caught,
they lose 2 months benefits; the second time, 3 months benefits. The
third time they're caught, the suspension is even longer.
H.R. 4277 also expands the use of representative payees for addicts.
I found that addicts often pick friends or family today to serve as the
recipient of their benefits and then pressure these payees to give them
the money without any controls. H.R. 4277 does two important things to
change that.
Under the bill, State and local agencies can serve as representative
payees. This means that agencies concerned about seeing addicts go
through treatment will be able to control their funds. The bill also
provides a model for resolving the unfunded mandates problem because it
incorporates my amendment to allow State and local agencies to take up
to 10 percent of an addict's benefit in order to pay for the cost of
providing services.
Finally, I am pleased that the bill incorporates suggestions that we
limit benefits to addicts to a maximum of 36 months because it sends a
message that they have to seriously seek treatment while they are
eligible.
Altogether, these provisions will save taxpayers billions of dollars.
They are appropriate steps toward bringing addiction under control and
I hope they can be enacted this year.
Mr. POSHARD. Mr. Speaker, I want to thank my Illinois colleague,
Chairman Rostenkowski, and the members of the committee who have worked
to bring this bill to the floor.
While there are a number of important changes being made in the
administration of Social Security Programs, I would like to focus on
reforms being implemented to restrict disability insurance and SSI
disability payments to substance abusers.
This issue came to the forefront in my district not long ago when the
Decatur Herald and Review newspaper published a series of articles
outlining deficiencies in our Social Security system.
The bill we are approving today makes a number of important changes:
Paying DI benefits to a representative payee.
Having organizations, rather than family or friends serve as the
representative payee.
Conditioning eligibility for DI benefits on participation in a
treatment program.
Importantly, the bill also stops benefits to substance abusers after
36 months.
As I discussed these proposals with my colleagues, including the
gentleman from Wisconsin, Congressman Kleczka, I also sought the advice
of the Honorable James A. Hendrian, who works through these cases on a
daily basis in his courtroom.
The judge tells troubling stories about persons receiving benefits
for disabilities which are the direct result of criminal activity.
Judge Hendrian also sees numerous cases where disabilities for which
people are receiving benefits appear to be based on little if any
factual evidence--other than the simple claim of disability.
Like so many other Government programs * * * our resources to assist
and support legitimate claims are being sapped by those who abuse the
system.
To quote Judge Hendrian:
While I am sure that there are many deserving and needy
people receiving benefits, there are far too many who are
abusing the system. Meaningful reform, monitoring and
limitation of benefits under certain circumstances is a
start.
If people are disabled due to their alcohol and drug addiction they
should receive treatment to recover and become productive citizens once
again.
But we should not finance a long-term program of disability programs
for people who are not willing to take responsibility for getting
better.
I also thank the committee for its attention to the problem of
school-age children who are receiving SSI benefits.
This is the headline from the Decatur Herald and Review.
``Teachers feel they fight losing battle with SSI. They say they
encourage success, while parents encourage failure.''
I realize that the Supreme Court ruling has made it easier for
children to qualify for SSI.
But we have to look at further ways to restrict SSI eligibility * * *
and the amendment included by the committee to require disabled
children receiving SSI benefits to be reviewed for continuing
disability by their 19th birthday is a start.
I've been an educator all my life. I've taught in the classroom and
administered educational programs.
I don't want to take any action which would limit a child's
opportunity to overcome adversity and realize his or her potential.
But if it is determined that some physical or mental condition
qualifies a child for SSI payments * * * we should ensure that child is
in an appropriate therapy program * * * is attending school * * * and
the payments are going to a responsible party which can help see to it
that those benefits are being used in the proper manner.
I know the committee has great concerns about this issue and I pledge
my support for further action.
Again, I thank the people in Decatur who have helped bring attention
to this problem, and my colleagues on the committee who are trying to
do something about it.
The SPEAKER pro tempore. The time of the gentleman from Kentucky [Mr.
Bunning] has expired.
Mr. JACOBS. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. All time has expired.
The question is on the motion offered by the gentleman from Illinois
[Mr. Rostenkowski] that the House suspend the rules and pass the bill,
H.R. 4277, as amended.
The question was taken.
Mr. JACOBS. Mr. Speaker, I object to the vote on the ground that a
quorum is not present and make the point of order that a quorum is not
present.
The SPEAKER pro tempore. Pursuant to clause 5 of rule I, and the
Chair's prior announcement, further proceedings on this motion will be
postponed.
The point of no quorum is considered withdrawn.
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