Union Calendar No. 191

104TH CONGRESS

1ST SESSION H. R. 2684

[Report No. 104–379]

A BILL

To amend title II of the Social Security Act to proand for other purposes. for individuals who have attained retirement age, earnings under the social security earnings limit vide for increases in the amounts of allowable

DECEMBER 4, 1995

Reported with an amendment, committed to the Commitordered to be printed tee of the Whole House on the State of the Union, and
IB

Union Calendar No. 191

104TH CONGRESS

1ST SESSION H. R. 2684

[Report No. 104–379]

To amend title II of the Social Security Act to provide for increases in

the amounts of allowable earnings under the social security earnings

limit for individuals who have attained retirement age, and for other

purposes.

IN THE HOUSE OF REPRESENTATIVES

NOVEMBER 29, 1995

Mr. BUNNING of Kentucky (for himself, Mr. HASTERT, Mr. ARCHER, Mr. JACOBS, Mr. SAM JOHNSON of Texas, Mr. COLLINS of Georgia, Mr.

PORTMAN, Mr. ENGLISH of Pennsylvania, Mr. CHRISTENSEN, Mr.

LAUGHLIN, Mr. CRANE, Mr. THOMAS, Mr. SHAW, Mrs. JOHNSON of Connecticut, Mr. HOUGHTON, Mr. HERGER, Mr. MCCRERY, Mr. HANCOCK,

Mr. CAMP, Mr. RAMSTAD, Mr. ZIMMER, Mr. NUSSLE, Ms. DUNN of

Washington, Mr. ENSIGN, Mr. MCCOLLUM, Mr. MCINTOSH, Mr.

KNOLLENBERG, Mr. GOSS, Mrs. SMITH of Washington, Mr. MCDADE,

Mr. EMERSON, Mr. FRELINGHUYSEN, Mr. BUNN of Oregon, Mr.

CHABOT, Mr. KOLBE, Mr. BALLENGER, Mr. BACHUS, Mr. SOLOMON, Mr.

CUNNINGHAM, Mr. LATOURETTE, Mr. METCALF, Mr. CALVERT, Mr.

FUNDERBURK, Mr. LEWIS of Kentucky, Mr. BURTON of Indiana, Mr.

GUNDERSON, Mr. BLUTE, Mr. MYERS of Indiana, Mr. GALLEGLY, Mr.

HEINEMAN, Mr. COBLE, Mr. FOLEY, Mr. BARTLETT of Maryland, Mrs.

FOWLER, Mr. HANSEN, Mr. SAXTON, Mr. BOEHNER, Mr. FIELDS of

Texas, Mr. STEARNS, Mr. BEREUTER, Mr. BARTON of Texas, Mr. BLILEY, Mr. HAYWORTH, Mr. COOLEY, Mr. BASS, Mrs. KELLY, Mr.

LARGENT, Mr. INGLIS of South Carolina, Mr. EWING, Mr. LUCAS, Mr.

SCHAEFER, Mr. TORKILDSEN, Mr. MILLER of Florida, Mr. FOX of Pennsylvania, Mr. BOEHLERT, Mr. CLINGER, Mr. GREENWOOD, Mr.

NETHERCUTT, Mr. STUMP, Mr. JONES, Mr. FRISA, Mrs. MORELLA, Mr.

NORWOOD, Mr. TALENT, Mr. WELDON of Pennsylvania, Mr. EHRLICH,

Mr. ROYCE, Mr. SALMON, Mrs. VUCANOVICH, Mr. SMITH of New Jersey,

Mr. DORNAN, Mr. HOSTETTLER, Mr. BUYER, Mr. ROBERTS, Mr. SHAYS,

Mr. UPTON, and Mr. CLEMENT) introduced the following bill; which was

referred to the Committee on Ways and Means
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DECEMBER 4, 1995

Reported with an amendment, committed to the Committee of the Whole

House on the State of the Union, and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in italic]

[For text of introduced bill, see copy of bill as introduced on November 29, 1995]

A BILL

To amend title II of the Social Security Act to provide

for increases in the amounts of allowable earnings under

the social security earnings limit for individuals who

have attained retirement age, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Senior Citizens’ Right

5 to Work Act of 1995’’.

6 SEC. 2. INCREASES IN MONTHLY EXEMPT AMOUNT FOR

7 PURPOSES OF THE SOCIAL SECURITY EARN8 INGS LIMIT.

9 (a) INCREASE IN MONTHLY EXEMPT AMOUNT FOR IN10 DIVIDUALS WHO HAVE ATTAINED RETIREMENT AGE.—Sec11 tion 203(f)(8)(D) of the Social Security Act (42 U.S.C.

12 403(f)(8)(D)) is amended to read as follows:

13 ‘‘(D) Notwithstanding any other provision of

14 this subsection, the exempt amount which is applica15 ble to an individual who has attained retirement age
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1 (as defined in section 216(l)) before the close of the

2 taxable year involved shall be—

3 ‘‘(i) for each month of any taxable year

ending after 1995 and before 1997, $1,166.662 4 ⁄3,

5 ‘‘(ii) for each month of any taxable year

6 ending after 1996 and before 1998, $1,250.00,

7 ‘‘(iii) for each month of any taxable year

ending after 1997 and before 1999, $1,333.331 8 ⁄3,

9 ‘‘(iv) for each month of any taxable year

ending after 1998 and before 2000, $1,416.662 10 ⁄3,

11 ‘‘(v) for each month of any taxable year

12 ending after 1999 and before 2001, $1,500.00,

13 ‘‘(vi) for each month of any taxable year

ending after 2000 and before 2002, $2,083.331 14 ⁄3,

15 and

16 ‘‘(vii) for each month of any taxable year

17 ending after 2001 and before 2003, $2,500.00.’’.

18 (b) CONFORMING AMENDMENTS.—

19 (1) Section 203(f)(8)(B)(ii) of such Act (42

20 U.S.C. 403(f)(8)(B)(ii)) is amended—

21 (A) by striking ‘‘the taxable year ending

22 after 1993 and before 1995’’ and inserting ‘‘the

23 taxable year ending after 2001 and before 2003

24 (with respect to individuals described in sub25 paragraph (D)) or the taxable year ending after
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1 1993 and before 1995 (with respect to other indi2 viduals)’’; and

3 (B) in subclause (II), by striking ‘‘for

4 1992’’ and inserting ‘‘for 2000 (with respect to

5 individuals described in subparagraph (D)) or

6 1992 (with respect to other individuals)’’.

7 (2) The second sentence of section 223(d)(4)(A) of

8 such Act (42 U.S.C. 423(d)(4)(A)) is amended by

9 striking ‘‘the exempt amount under section 203(f)(8)

10 which is applicable to individuals described in sub11 paragraph (D) thereof’’ and inserting the following:

12 ‘‘an amount equal to the exempt amount which would

13 be applicable under section 203(f)(8), to individuals

14 described in subparagraph (D) thereof, if section 2 of

15 the Senior Citizens’ Right to Work Act of 1995 had

16 not been enacted’’.

17 (c) EFFECTIVE DATE.—The amendments made by this

18 section shall apply with respect to taxable years ending

19 after 1995.

20 SEC. 3. ESTABLISHMENT OF DISABILITY INSURANCE CON21 TINUING DISABILITY REVIEW ADMINISTRA22 TION REVOLVING ACCOUNT.

23 (a) CONTINUING DISABILITY REVIEW ADMINISTRA24 TION REVOLVING ACCOUNT FOR TITLE II DISABILITY BEN-
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1 EFITS IN THE FEDERAL DISABILITY INSURANCE TRUST

2 FUND.—

3 (1) IN GENERAL.—Section 201 of the Social Se4 curity Act (42 U.S.C. 401) is amended by adding at

5 the end the following new subsection:

6 ‘‘(n)(1) There is hereby created in the Federal Disabil7 ity Insurance Trust Fund a Continuing Disability Review

8 Administration Revolving Account (hereinafter in this sub9 section referred to as the ‘Account’). The Account shall con10 sist initially of $300,000,000 (which is hereby transferred

11 to the Account from amounts otherwise available in such

12 Trust Fund) and shall also consist thereafter of such other

13 amounts as may be transferred to it under this subsection.

14 The balance in the Account shall be available solely for ex15 penditures certified under paragraph (2).

16 ‘‘(2)(A) Before October 1 of each calendar year, the

17 Chief Actuary of the Social Security Administration

18 shall—

19 ‘‘(i) estimate the present value of savings to the

20 Federal Old-Age and Survivors Insurance Trust

21 Fund, the Federal Disability Insurance Trust Fund,

22 the Federal Hospital Insurance Trust Fund, and the

23 Federal Supplementary Medical Insurance Trust

24 Fund which will accrue for all years as a result of

25 cessations of benefit payments resulting from continu-
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1 ing disability reviews carried out pursuant to the re2 quirements of section 221(i) during the fiscal year

3 ending on September 30 of such calendar year (in4 creased or decreased as appropriate to account for de5 viations of estimates for prior fiscal years from the

6 actual amounts for such fiscal years), and

7 ‘‘(ii) certify the amount of such estimate to the

8 Managing Trustee.

9 ‘‘(B) Upon receipt of certification by the Chief Actuary

10 under subparagraph (A), the Managing Trustee shall trans11 fer to the Account from amounts otherwise in the Trust

12 Fund an amount equal to the estimated savings so certified.

13 ‘‘(C) To the extent of available funds in the Account,

14 upon certification by the Chief Actuary that such funds are

15 currently required to meet expenditures necessary to provide

16 for continuing disability reviews required under section

17 221(i), the Managing Trustee shall make available to the

18 Commissioner of Social Security from the Account the

19 amount so certified.

20 ‘‘(D) The expenditures referred to in subparagraph (C)

21 shall include, but not be limited to, the cost of staffing,

22 training, purchase of medical and other evidence, and proc23 essing related to appeals (including appeal hearings) and

24 to overpayments and related indirect costs.
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1 ‘‘(E) The Commissioner shall use funds made available

2 pursuant to this paragraph solely for the purposes described

3 in subparagraph (C).’’.

4 (2) CONFORMING AMENDMENT.—Section

5 201(g)(1)(A) of such Act (42 U.S.C. 401(g)(1)(A)) is

6 amended in the last sentence by inserting ‘‘(other

7 than expenditures from available funds in the Con8 tinuing Disability Review Administration Revolving

9 Account in the Federal Disability Insurance Trust

10 Fund made pursuant to subsection (n))’’ after ‘‘is re11 sponsible’’ the first place it appears.

12 (3) ANNUAL REPORT.—Section 221(i)(3) of such

13 Act (42 U.S.C. 421(i)(3)) is amended—

14 (A) by striking ‘‘and the number’’ and in15 serting ‘‘the number’’;

16 (B) by striking the period at the end and

17 inserting a comma; and

18 (C) by adding at the end the following:

19 ‘‘and a final accounting of amounts transferred

20 to the Continuing Disability Review Administra21 tion Revolving Account in the Federal Disability

22 Insurance Trust Fund during the year, the

23 amount made available from such Account dur24 ing such year pursuant to certifications made by

25 the Chief Actuary of the Social Security Admin-
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1 istration under section 201(n)(2)(C), and ex2 penditures made by the Commissioner of Social

3 Security for the purposes described in section

4 201(n)(2)(C) during the year, including a com5 parison of the number of continuing disability

6 reviews conducted during the year with the esti7 mated number of continuing disability reviews

8 upon which the estimate of such expenditures

9 was made under section 201(n)(2)(A).’’.

10 (b) EFFECTIVE DATE AND SUNSET.—

11 (1) EFFECTIVE DATE.—The amendments made

12 by subsection (a) shall apply for fiscal years begin13 ning on or after October 1, 1995, and ending on or

14 before September 30, 2002.

15 (2) SUNSET.—Effective October 1, 2002, the Con16 tinuing Disability Review Administration Revolving

17 Account in the Federal Disability Insurance Trust

18 Fund shall cease to exist, any balance in such Ac19 count shall revert to funds otherwise available in such

20 Trust Fund, and sections 201 and 221 of the Social

21 Security Act shall read as if the amendments made

22 by subsection (a) had not been enacted.

23 (c) OFFICE OF CHIEF ACTUARY IN THE SOCIAL SECU24 RITY ADMINISTRATION.—
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1 (1) IN GENERAL.—Section 702 of such Act (42

2 U.S.C. 902) is amended—

3 (A) by redesignating subsections (c) and (d)

4 as subsections (d) and (e), respectively; and

5 (B) by inserting after subsection (b) the fol6 lowing new subsection:

7 ‘‘Chief Actuary

8 ‘‘(c)(1) There shall be in the Administration a Chief

9 Actuary, who shall be appointed by, and in direct line of

10 authority to, the Commissioner. The Chief Actuary shall be

11 appointed from individuals who have demonstrated, by

12 their education and experience, superior expertise in the ac13 tuarial sciences. The Chief Actuary shall serve as the chief

14 actuarial officer of the Administration, and shall exercise

15 such duties as are appropriate for the office of the Chief

16 Actuary and in accordance with professional standards of

17 actuarial independence. The Chief Actuary may be removed

18 only for cause.

19 ‘‘(2) The Chief Actuary shall be compensated at the

20 highest rate of basic pay for the Senior Executive Service

21 under section 5382(b) of title 5, United States Code.’’.

22 (2) EFFECTIVE DATE OF SUBSECTION.—The

23 amendments made by this subsection shall take effect

24 on the date of the enactment of this Act.
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1 SEC. 4. ENTITLEMENT OF STEPCHILDREN TO CHILD’S IN2 SURANCE BENEFITS BASED ON ACTUAL DE3 PENDENCY ON STEPPARENT SUPPORT.

4 (a) REQUIREMENT OF ACTUAL DEPENDENCY FOR FU5 TURE ENTITLEMENTS.—

6 (1) IN GENERAL.—Section 202(d)(4) of the So7 cial Security Act (42 U.S.C. 402(d)(4)) is amended

8 by striking ‘‘was living with or’’.

9 (2) EFFECTIVE DATE.—The amendment made by

10 paragraph (1) shall apply with respect to benefits of

11 individuals who become entitled to such benefits for

12 months after the third month following the month in

13 which this Act is enacted.

14 (b) TERMINATION OF CHILD’S INSURANCE BENEFITS

15 BASED ON WORK RECORD OF STEPPARENT UPON NATURAL

16 PARENT’S DIVORCE FROM STEPPARENT.—

17 (1) IN GENERAL.—Section 202(d)(1) of the So18 cial Security Act (42 U.S.C. 402(d)(1)) is amended—

19 (A) by striking ‘‘or’’ at the end of subpara20 graph (F);

21 (B) by striking the period at the end of sub22 paragraph (G) and inserting ‘‘; or’’; and

23 (C) by inserting after subparagraph (G) the

24 following new subparagraph:

25 ‘‘(H) if the benefits under this subsection are

26 based on the wages and self-employment income of a
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1 stepparent who is subsequently divorced from such

2 child’s natural parent, the sixth month after the

3 month in which the Commissioner of Social Security

4 receives formal notification of such divorce.’’.

5 (2) EFFECTIVE DATE.—The amendments made

6 by this subsection shall apply with respect to notifica7 tions of divorces received by the Commissioner of So8 cial Security on or after the date of the enactment of

9 this Act.

10 SEC. 5. RECOMPUTATION OF BENEFITS AFTER NORMAL RE11 TIREMENT AGE.

12 (a) IN GENERAL.—Section 215(f)(2)(D)(i) of the So13 cial Security Act (42 U.S.C. 415(f)(2)(D)(i)) is amended

14 to read as follows:

15 ‘‘(i) in the case of an individual who did not die

16 in the year with respect to which the recomputation

17 is made, for monthly benefits beginning with benefits

18 for January of—

19 ‘‘(I) the second year following the year with

20 respect to which the recomputation is made, in

21 any such case in which the individual is entitled

22 to old-age insurance benefits, the individual has

23 attained retirement age (as defined in section

24 216(l)) as of the end of the year preceding the

25 year with respect to which the recomputation is
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1 made, and the year with respect to which the re2 computation is made would not be substituted in

3 recomputation under this subsection for a benefit

4 computation year in which no wages or self-em5 ployment income have been credited previously

6 to such individual, or

7 ‘‘(II) the first year following the year with

8 respect to which the recomputation is made, in

9 any other such case; or’’.

10 (b) CONFORMING AMENDMENTS.—

11 (1) Section 215(f)(7) of such Act (42 U.S.C.

12 415(f)(7)) is amended by inserting ‘‘, and as amend13 ed by section 5(b)(2) of the Senior Citizens’ Right to

14 Work Act of 1995,’’ after ‘‘This subsection as in effect

15 in December 1978’’.

16 (2) Subparagraph (A) of section 215(f)(2) of the

17 Social Security Act as in effect in December 1978 and

18 applied in certain cases under the provisions of such

19 Act as in effect after December 1978 is amended—

20 (A) by striking ‘‘in the case of an individ21 ual who did not die’’ and all that follows and in22 serting ‘‘in the case of an individual who did not

23 die in the year with respect to which the recom24 putation is made, for monthly benefits beginning

25 with benefits for January of—’’; and
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1 (B) by adding at the end the following:

2 ‘‘(i) the second year following the year with

3 respect to which the recomputation is made, in

4 any such case in which the individual is entitled

5 to old-age insurance benefits, the individual has

6 attained age 65 as of the end of the year preced7 ing the year with respect to which the recom8 putation is made, and the year with respect to

9 which the recomputation is made would not be

10 substituted in recomputation under this sub11 section for a benefit computation year in which

12 no wages or self-employment income have been

13 credited previously to such individual, or

14 ‘‘(ii) the first year following the year with

15 respect to which the recomputation is made, in

16 any other such case; or’’.

17 (c) EFFECTIVE DATE.—The amendments made by this

18 section shall apply with respect to recomputations of pri19 mary insurance amounts based on wages paid and self em20 ployment income derived after 1994 and with respect to

21 benefits payable after December 31, 1995.
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1 SEC. 6. ELIMINATION OF THE ROLE OF THE SOCIAL SECU2 RITY ADMINISTRATION IN PROCESSING AT3 TORNEY FEES.

4 (a) ACTIONS BEFORE THE COMMISSIONER.—Section

5 206(a) of the Social Security Act (42 U.S.C. 406(a)) is

6 amended—

7 (1) in paragraph (1), by striking the fourth and

8 fifth sentences;

9 (2) by striking paragraphs (2), (3), and (4);

10 (3) by inserting after paragraph (1) the follow11 ing new paragraph:

12 ‘‘(2)(A) No person, agent, or attorney may charge in

13 excess of $4,000 (or, if higher, the amount set pursuant to

14 subparagraph (B)) for services performed in connection

15 with any claim before the Commissioner under this title,

16 or for services performed in connection with concurrent

17 claims before the Commissioner under this title and title

18 XVI.

19 ‘‘(B) The Commissioner may increase the dollar

20 amount under subparagraph (A) whenever the Commis21 sioner determines that such an increase is warranted. The

22 Commissioner shall publish any such increased amount in

23 the Federal Register.

24 ‘‘(C) Any agreement in violation of this paragraph

25 shall be void.
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1 ‘‘(D) Whenever the Commissioner makes a favorable

2 determination in connection with any claim for benefits

3 under this title by a claimant who is represented by a per4 son, agent, or attorney, the Commissioner shall provide the

5 claimant and such person, agent, or attorney a written no6 tice of—

7 ‘‘(i) the determination,

8 ‘‘(ii) the dollar amount of any benefits payable

9 to the claimant, and

10 ‘‘(iii) the maximum amount under paragraph

11 (2) that may be charged for services performed in con12 nection with such claim.’’; and

13 (4) by redesignating paragraph (5) as para14 graph (3).

15 (b) JUDICIAL PROCEEDINGS.—Section 206(b)(1) of

16 such Act (42 U.S.C. 406(b)(1)) is amended—

17 (1) in the first sentence of subparagraph (A), by

18 striking ‘‘representation,’’ and all that follows and in19 serting the following: ‘‘representation. In determining

20 a reasonable fee, the court shall take into consider21 ation the amount of the fee, if any, that such attor22 ney, or any other person, agent, or attorney, may

23 charge the claimant for services performed in connec24 tion with the claimant’s claim when it was pending

25 before the Commissioner.’’;
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1 (2) in the second sentence of subparagraph (A),

2 by striking ‘‘or certified for payment’’;

3 (3) by striking subparagraph (B); and

4 (4) by striking ‘‘(b)(1)(A)’’ and inserting

5 ‘‘(b)(1)’’.

6 (c) CONFORMING AMENDMENTS.—

7 (1) Section 223(h)(3) of such Act (42 U.S.C.

8 423(h)(3)) is amended by striking all that follows

9 ‘‘obtained)’’ and inserting a period.

10 (2) Section 1127(a) of such Act (42 U.S.C.

11 1320a–6(a)) is amended by striking the last sentence.

12 (3) Section 1631(d)(2)(A) of such Act (42 U.S.C.

13 1383(d)(2)(A)) is amended—

14 (A) by striking ‘‘(other than paragraph (4)

15 thereof)’’; and

16 (B) by striking all that follows ‘‘title II’’

17 and inserting a period.

18 (d) EFFECTIVE DATE.—The amendments made by this

19 section shall apply with respect to—

20 (1) any claim for benefits under the old-age, sur21 vivors, and disability insurance program under title

22 II of the Social Security Act, the supplemental secu23 rity income program under title XVI of such Act, or

24 the black lung program under part B of the Black

25 Lung Benefits Act that is initially filed on or after
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1 the 60th day following the date of the enactment of

2 this Act, and

3 (2) any claim for such benefits filed before such

4 60th day by a claimant who is first represented by

5 any person, agent, or attorney in connection with

6 such claim on or after such 60th day.

7 SEC. 7. DENIAL OF DISABILITY BENEFITS TO DRUG AD8 DICTS AND ALCOHOLICS.

9 (a) AMENDMENTS RELATING TO TITLE II DISABILITY

10 BENEFITS.—

11 (1) IN GENERAL.—Section 223(d)(2) of the So12 cial Security Act (42 U.S.C. 423(d)(2)) is amended

13 by adding at the end the following:

14 ‘‘(C) An individual shall not be considered to be

15 disabled for purposes of this title if alcoholism or drug

16 addiction would (but for this subparagraph) be a con17 tributing factor material to the Commissioner’s deter18 mination that the individual is disabled.’’.

19 (2) REPRESENTATIVE PAYEE REQUIREMENTS.—

20 (A) Section 205(j)(1)(B) of such Act (42

21 U.S.C. 405(j)(1)(B)) is amended to read as fol22 lows:

23 ‘‘(B) In the case of an individual entitled to benefits

24 based on disability, the payment of such benefits shall be

25 made to a representative payee if the Commissioner of So-
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1 cial Security determines that such payment would serve the

2 interest of the individual because the individual also has

3 an alcoholism or drug addiction condition (as determined

4 by the Commissioner) that prevents the individual from

5 managing such benefits.’’.

6 (B) Section 205(j)(2)(C)(v) of such Act (42

7 U.S.C. 405(j)(2)(C)(v)) is amended by striking

8 ‘‘entitled to benefits’’ and all that follows through

9 ‘‘under a disability’’ and inserting ‘‘described in

10 paragraph (1)(B)’’.

11 (C) Section 205(j)(2)(D)(ii)(II) of such Act

12 (42 U.S.C. 405(j)(2)(D)(ii)(II)) is amended by

13 striking all that follows ‘‘15 years, or’’ and in14 serting ‘‘described in paragraph (1)(B).’’.

15 (D) Section 205(j)(4)(A)(i)(II) (42 U.S.C.

16 405(j)(4)(A)(ii)(II)) is amended by striking ‘‘en17 titled to benefits’’ and all that follows through

18 ‘‘under a disability’’ and inserting ‘‘described in

19 paragraph (1)(B)’’.

20 (3) TREATMENT REFERRALS FOR INDIVIDUALS

21 WITH AN ALCOHOLISM OR DRUG ADDICTION CONDI22 TION.—Section 222 of such Act (42 U.S.C. 422) is

23 amended by adding at the end the following new sub24 section:
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1 ‘‘Treatment Referrals for Individuals with an Alcoholism

2 or Drug Addiction Condition

3 ‘‘(e) In the case of any individual whose benefits under

4 this title are paid to a representative payee pursuant to

5 section 205(j)(1)(B), the Commissioner of Social Security

6 shall refer such individual to the appropriate State agency

7 administering the State plan for substance abuse treatment

8 services approved under subpart II of part B of title XIX

9 of the Public Health Service Act (42 U.S.C. 300x–21 et

10 seq.).’’.

11 (4) CONFORMING AMENDMENT.—Subsection (c)

12 of section 225 of such Act (42 U.S.C. 425(c)) is re13 pealed.

14 (5) EFFECTIVE DATES.—

15 (A) The amendments made by paragraphs

16 (1) and (4) shall apply with respect to monthly

17 insurance benefits under title II of the Social Se18 curity Act based on disability for months begin19 ning after the date of the enactment of this Act,

20 except that, in the case of individuals who are

21 entitled to such benefits for the month in which

22 this Act is enacted, such amendments shall apply

23 only with respect to such benefits for months be24 ginning on or after January 1, 1997.
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1 (B) The amendments made by paragraphs

2 (2) and (3) shall apply with respect to benefits

3 for which applications are filed on or after the

4 date of the enactment of this Act.

5 (C) If an individual who is entitled to

6 monthly insurance benefits under title II of the

7 Social Security Act based on disability for the

8 month in which this Act is enacted and whose

9 entitlement to such benefits would terminate by

10 reason of the amendments made by this sub11 section reapplies for benefits under title II of

12 such Act (as amended by this Act) based on dis13 ability within 120 days after the date of the en14 actment of this Act, the Commissioner of Social

15 Security shall, not later than January 1, 1997,

16 complete the entitlement redetermination with

17 respect to such individual pursuant to the proce18 dures of such title.

19 (b) AMENDMENTS RELATING TO SSI BENEFITS.—

20 (1) IN GENERAL.—Section 1614(a)(3) of the So21 cial Security Act (42 U.S.C. 1382c(a)(3)) is amended

22 by adding at the end the following:

23 ‘‘(I) Notwithstanding subparagraph (A), an individ24 ual shall not be considered to be disabled for purposes of

25 this title if alcoholism or drug addiction would (but for this
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1 subparagraph) be a contributing factor material to the

2 Commissioner’s determination that the individual is dis3 abled.’’.

4 (2) REPRESENTATIVE PAYEE REQUIREMENTS.—

5 (A) Section 1631(a)(2)(A)(ii)(II) of such

6 Act (42 U.S.C. 1383(a)(2)(A)(ii)(II)) is amended

7 to read as follows:

8 ‘‘(II) In the case of an individual eligible for benefits

9 under this title by reason of disability, the payment of such

10 benefits shall be made to a representative payee if the Com11 missioner of Social Security determines that such payment

12 would serve the interest of the individual because the indi13 vidual also has an alcoholism or drug addiction condition

14 (as determined by the Commissioner) that prevents the in15 dividual from managing such benefits.’’.

16 (B) Section 1631(a)(2)(B)(vii) of such Act

17 (42 U.S.C. 1383(a)(2)(B)(vii)) is amended by

18 striking ‘‘eligible for benefits’’ and all that fol19 lows through ‘‘is disabled’’ and inserting ‘‘de20 scribed in subparagraph (A)(ii)(II)’’.

21 (C) Section 1631(a)(2)(B)(ix)(II) of such

22 Act (42 U.S.C. 1383(a)(2)(B)(ix)(II)) is amend23 ed by striking all that follows ‘‘15 years, or’’ and

24 inserting ‘‘described in subparagraph

25 (A)(ii)(II).’’.
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1 (D) Section 1631(a)(2)(D)(i)(II) of such Act

2 (42 U.S.C. 1383(a)(2)(D)(i)(II)) is amended by

3 striking ‘‘eligible for benefits’’ and all that fol4 lows through ‘‘is disabled’’ and inserting ‘‘de5 scribed in subparagraph (A)(ii)(II)’’.

6 (3) TREATMENT SERVICES FOR INDIVIDUALS

7 WITH A SUBSTANCE ABUSE CONDITION.—Title XVI of

8 such Act (42 U.S.C. 1381 et seq.) is amended by add9 ing at the end the following new section:

10 ‘‘TREATMENT SERVICES FOR INDIVIDUALS WITH A

11 SUBSTANCE ABUSE CONDITION

12 ‘‘SEC. 1636. In the case of any individual whose bene13 fits under this title are paid to a representative payee pur14 suant to section 1631(a)(2)(A)(ii)(II), the Commissioner of

15 Social Security shall refer such individual to the appro16 priate State agency administering the State plan for sub17 stance abuse treatment services approved under subpart II

18 of part B of title XIX of the Public Health Service Act (42

19 U.S.C. 300x–21 et seq.).’’.

20 (4) CONFORMING AMENDMENTS.—

21 (A) Section 1611(e) of such Act (42 U.S.C.

22 1382(e)) is amended by striking paragraph (3).

23 (B) Section 1634 of such Act (42 U.S.C.

24 1383c) is amended by striking subsection (e).

25 (5) EFFECTIVE DATES.—
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1 (A) The amendments made by paragraphs

2 (1) and (4) shall apply with respect to supple3 mental security income benefits under title XVI

4 of the Social Security Act based on disability for

5 months beginning after the date of the enactment

6 of this Act, except that, in the case of individuals

7 who are eligible for such benefits for the month

8 in which this Act is enacted, such amendments

9 shall apply only with respect to such benefits for

10 months beginning on or after January 1, 1997.

11 (B) The amendments made by paragraphs

12 (2) and (3) shall apply with respect to supple13 mental security income benefits under title XVI

14 of the Social Security Act for which applications

15 are filed on or after the date of the enactment of

16 this Act.

17 (C) If an individual who is eligible for sup18 plemental security income benefits under title

19 XVI of the Social Security Act for the month in

20 which this Act is enacted and whose eligibility

21 for such benefits would terminate by reason of

22 the amendments made by this subsection

23 reapplies for supplemental security income bene24 fits under title XVI of such Act (as amended by

25 this Act) within 120 days after the date of the
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1 enactment of this Act, the Commissioner of So2 cial Security shall, not later than January 1,

3 1997, complete the eligibility redetermination

4 with respect to such individual pursuant to the

5 procedures of such title.

6 (D) For purposes of this paragraph, the

7 phrase ‘‘supplemental security income benefits

8 under title XVI of the Social Security Act’’ in9 cludes supplementary payments pursuant to an

10 agreement for Federal administration under sec11 tion 1616(a) of the Social Security Act and pay12 ments pursuant to an agreement entered into

13 under section 212(b) of Public Law 93–66.

14 (c) CONFORMING AMENDMENT.—Section 201(c) of the

15 Social Security Independence and Program Improvements

16 Act of 1994 (42 U.S.C. 425 note) is repealed.

17 (d) SUPPLEMENTAL FUNDING FOR ALCOHOL AND SUB18 STANCE ABUSE TREATMENT PROGRAMS.—

19 (1) IN GENERAL.—Out of any money in the

20 Treasury not otherwise appropriated, there are hereby

21 appropriated to supplement State and Tribal pro22 grams funded under section 1933 of the Public Health

23 Service Act (42 U.S.C. 300x–33), $100,000,000 for

24 each of the fiscal years 1997 and 1998.
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1 (2) ADDITIONAL FUNDS.—Amounts appropriated

2 under paragraph (1) shall be in addition to any

3 funds otherwise appropriated for allotments under

4 section 1933 of the Public Health Service Act (42

5 U.S.C. 300x–33) and shall be allocated pursuant to

6 such section 1933.

7 (3) USE OF FUNDS.—A State or Tribal govern8 ment receiving an allotment under this subsection

9 shall consider as priorities, for purposes of expending

10 funds allotted under this subsection, activities relating

11 to the treatment of the abuse of alcohol and other

12 drugs.

13 SEC. 8. REVOCATION BY MEMBERS OF THE CLERGY OF EX14 EMPTION FROM SOCIAL SECURITY COV15 ERAGE.

16 (a) IN GENERAL.—Notwithstanding section 1402(e)(4)

17 of the Internal Revenue Code of 1986, any exemption which

18 has been received under section 1402(e)(1) of such Code by

19 a duly ordained, commissioned, or licensed minister of a

20 church, a member of a religious order, or a Christian

21 Science practitioner, and which is effective for the taxable

22 year in which this Act is enacted, may be revoked by filing

23 an application therefor (in such form and manner, and

24 with such official, as may be prescribed in regulations made

25 under chapter 2 of such Code), if such application is filed
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1 no later than the due date of the Federal income tax return

2 (including any extension thereof) for the applicant’s second

3 taxable year beginning after December 31, 1995. Any such

4 revocation shall be effective (for purposes of chapter 2 of

5 the Internal Revenue Code of 1986 and title II of the Social

6 Security Act), as specified in the application, either with

7 respect to the applicant’s first taxable year beginning after

8 December 31, 1995, or with respect to the applicant’s second

9 taxable year beginning after such date, and for all succeed10 ing taxable years; and the applicant for any such revoca11 tion may not thereafter again file application for an exemp12 tion under such section 1402(e)(1). If the application is

13 filed after the due date of the applicant’s Federal income

14 tax return for a taxable year and is effective with respect

15 to that taxable year, it shall include or be accompanied by

16 payment in full of an amount equal to the total of the taxes

17 that would have been imposed by section 1401 of the Inter18 nal Revenue Code of 1986 with respect to all of the appli19 cant’s income derived in that taxable year which would

20 have constituted net earnings from self-employment for pur21 poses of chapter 2 of such Code (notwithstanding section

22 1402(c)(4) or (c)(5) of such Code) except for the exemption

23 under section 1402(e)(1) of such Code.

24 (b) EFFECTIVE DATE.—Subsection (a) shall apply

25 with respect to service performed (to the extent specified in
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1 such subsection) in taxable years beginning after December

2 31, 1995, and with respect to monthly insurance benefits

3 payable under title II of the Social Security Act on the basis

4 of the wages and self-employment income of any individual

5 for months in or after the calendar year in which such indi6 vidual’s application for revocation (as described in such

7 subsection) is effective (and lump-sum death payments pay8 able under such title on the basis of such wages and self9 employment income in the case of deaths occurring in or

10 after such calendar year).

11 SEC. 9. PILOT STUDY OF EFFICACY OF PROVIDING INDIVID12 UALIZED INFORMATION TO RECIPIENTS OF

13 OLD-AGE AND SURVIVORS INSURANCE BENE14 FITS.

15 (a) IN GENERAL.—During a 2-year period beginning

16 as soon as practicable in 1996, the Commissioner of Social

17 Security shall conduct a pilot study of the efficacy of pro18 viding certain individualized information to recipients of

19 monthly insurance benefits under section 202 of the Social

20 Security Act, designed to promote better understanding of

21 their contributions and benefits under the social security

22 system. The study shall involve solely beneficiaries whose

23 entitlement to such benefits first occurred in or after 1984

24 and who have remained entitled to such benefits for a con25 tinuous period of not less than 5 years. The number of such
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1 recipients involved in the study shall be of sufficient size

2 to generate a statistically valid sample for purposes of the

3 study, but shall not exceed 600,000 beneficiaries.

4 (b) ANNUALIZED STATEMENTS.—During the course of

5 the study, the Commissioner shall provide to each of the

6 beneficiaries involved in the study one annualized state7 ment, setting forth the following information:

8 (1) an estimate of the aggregate wages and self9 employment income earned by the individual on

10 whose wages and self-employment income the benefit

11 is based, as shown on the records of the Commissioner

12 as of the end of the last calendar year ending prior

13 to the beneficiary’s first month of entitlement;

14 (2) an estimate of the aggregate of the employee

15 and self-employment contributions, and the aggregate

16 of the employer contributions (separately identified),

17 made with respect to the wages and self-employment

18 income on which the benefit is based, as shown on the

19 records of the Commissioner as of the end of the cal20 endar year preceding the beneficiary’s first month of

21 entitlement; and

22 (3) an estimate of the total amount paid as bene23 fits under section 202 of the Social Security Act based

24 on such wages and self-employment income, as shown

25 on the records of the Commissioner as of the end of
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1 the last calendar year preceding the issuance of the

2 statement for which complete information is avail3 able.

4 (b) INCLUSION WITH MATTER OTHERWISE DISTRIB5 UTED TO BENEFICIARIES.—The Commissioner shall ensure

6 that reports provided pursuant to this subsection are, to the

7 maximum extent practicable, included with other reports

8 currently provided to beneficiaries on an annual basis.

9 (c) REPORT TO THE CONGRESS.—The Commissioner

10 shall report to each House of the Congress regarding the

11 results of the pilot study conducted pursuant to this section

12 not later than 60 days after the completion of such study.

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