IIA

104TH CONGRESS

1ST SESSION H. R. 2684

IN THE SENATE OF THE UNITED STATES

DECEMBER 6, 1995

Received; read twice and referred to the Committee on Finance

AN ACT

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,
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1 SECTION 1. SHORT TITLE.

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

3 to Work Act of 1995’’.

4 SEC. 2. INCREASES IN MONTHLY EXEMPT AMOUNT FOR

5 PURPOSES OF THE SOCIAL SECURITY EARN6 INGS LIMIT.

7 (a) INCREASE IN MONTHLY EXEMPT AMOUNT FOR

8 INDIVIDUALS WHO HAVE ATTAINED RETIREMENT

9 AGE.—Section 203(f)(8)(D) of the Social Security Act (42

10 U.S.C. 403(f)(8)(D)) is amended to read as follows:

11 ‘‘(D) Notwithstanding any other provision of

12 this subsection, the exempt amount which is applica13 ble to an individual who has attained retirement age

14 (as defined in section 216(l)) before the close of the

15 taxable year involved shall be—

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

17 ending after 1995 and before 1997,

$1,166.662 18 ⁄3,

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

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

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

22 ending after 1997 and before 1999,

$1,333.331 23 ⁄3,

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

25 ending after 1998 and before 2000,

$1,416.662 26 ⁄3,
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1 ‘‘(v) for each month of any taxable year

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

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

4 ending after 2000 and before 2002,

$2,083.331 5 ⁄3, and

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

7 ending after 2001 and before 2003,

8 $2,500.00.’’.

9 (b) CONFORMING AMENDMENTS.—

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

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

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

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

14 taxable year ending after 2001 and before 2003

15 (with respect to individuals described in sub16 paragraph (D)) or the taxable year ending after

17 1993 and before 1995 (with respect to other in18 dividuals)’’; and

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

20 1992’’ and inserting ‘‘for 2000 (with respect to

21 individuals described in subparagraph (D)) or

22 1992 (with respect to other individuals)’’.

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

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

25 striking ‘‘the exempt amount under section 203(f)(8)
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1 which is applicable to individuals described in sub2 paragraph (D) thereof’’ and inserting the following:

3 ‘‘an amount equal to the exempt amount which

4 would be applicable under section 203(f)(8), to indi5 viduals described in subparagraph (D) thereof, if

6 section 2 of the Senior Citizens’ Right to Work Act

7 of 1995 had not been enacted’’.

8 (c) EFFECTIVE DATE.—The amendments made by

9 this section shall apply with respect to taxable years end10 ing after 1995.

11 SEC. 3. ESTABLISHMENT OF DISABILITY INSURANCE CON12 TINUING DISABILITY REVIEW ADMINISTRA13 TION REVOLVING ACCOUNT.

14 (a) CONTINUING DISABILITY REVIEW ADMINISTRA15 TION REVOLVING ACCOUNT FOR TITLE II DISABILITY

16 BENEFITS IN THE FEDERAL DISABILITY INSURANCE

17 TRUST FUND.—

18 (1) IN GENERAL.—Section 201 of the Social

19 Security Act (42 U.S.C. 401) is amended by adding

20 at the end the following new subsection:

21 ‘‘(n)(1) There is hereby created in the Federal Dis22 ability Insurance Trust Fund a Continuing Disability Re23 view Administration Revolving Account (hereinafter in

24 this subsection referred to as the ‘Account’). The Account

25 shall consist initially of $300,000,000 (which is hereby
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1 transferred to the Account from amounts otherwise avail2 able in such Trust Fund) and shall also consist thereafter

3 of such other amounts as may be transferred to it under

4 this subsection. The balance in the Account shall be avail5 able solely for expenditures certified under paragraph (2).

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

7 Chief Actuary of the Social Security Administration

8 shall—

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

10 Federal Old-Age and Survivors Insurance Trust

11 Fund, the Federal Disability Insurance Trust Fund,

12 the Federal Hospital Insurance Trust Fund, and the

13 Federal Supplementary Medical Insurance Trust

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

15 cessations of benefit payments resulting from con16 tinuing disability reviews carried out pursuant to the

17 requirements of section 221(i) during the fiscal year

18 ending on September 30 of such calendar year (in19 creased or decreased as appropriate to account for

20 deviations of estimates for prior fiscal years from

21 the actual amounts for such fiscal years), and

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

23 Managing Trustee.

24 ‘‘(B) Upon receipt of certification by the Chief Actu25 ary under subparagraph (A), the Managing Trustee shall
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1 transfer to the Account from amounts otherwise in the

2 Trust Fund an amount equal to the estimated savings so

3 certified.

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

5 upon certification by the Chief Actuary that such funds

6 are currently required to meet expenditures necessary to

7 provide for continuing disability reviews required under

8 section 221(i), the Managing Trustee shall make available

9 to the Commissioner of Social Security from the Account

10 the amount so certified.

11 ‘‘(D) The expenditures referred to in subparagraph

12 (C) shall include, but not be limited to, the cost of staffing,

13 training, purchase of medical and other evidence, and

14 processing related to appeals (including appeal hearings)

15 and to overpayments and related indirect costs.

16 ‘‘(E) The Commissioner shall use funds made avail17 able pursuant to this paragraph solely for the purposes

18 described in subparagraph (C).’’.

19 (2) CONFORMING AMENDMENT.—Section

20 201(g)(1)(A) of such Act (42 U.S.C. 401(g)(1)(A))

21 is amended in the last sentence by inserting ‘‘(other

22 than expenditures from available funds in the Con23 tinuing Disability Review Administration Revolving

24 Account in the Federal Disability Insurance Trust
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1 Fund made pursuant to subsection (n))’’ after ‘‘is

2 responsible’’ the first place it appears.

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

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

5 (A) by striking ‘‘and the number’’ and in6 serting ‘‘the number’’;

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

8 inserting a comma; and

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

10 ‘‘and a final accounting of amounts transferred

11 to the Continuing Disability Review Adminis12 tration Revolving Account in the Federal Dis13 ability Insurance Trust Fund during the year,

14 the amount made available from such Account

15 during such year pursuant to certifications

16 made by the Chief Actuary of the Social Secu17 rity Administration under section 201(n)(2)(C),

18 and expenditures made by the Commissioner of

19 Social Security for the purposes described in

20 section 201(n)(2)(C) during the year, including

21 a comparison of the number of continuing dis22 ability reviews conducted during the year with

23 the estimated number of continuing disability

24 reviews upon which the estimate of such ex-
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1 penditures was made under section

2 201(n)(2)(A).’’.

3 (b) EFFECTIVE DATE AND SUNSET.—

4 (1) EFFECTIVE DATE.—The amendments made

5 by subsection (a) shall apply for fiscal years begin6 ning on or after October 1, 1995, and ending on or

7 before September 30, 2002.

8 (2) SUNSET.—Effective October 1, 2002, the

9 Continuing Disability Review Administration Revolv10 ing Account in the Federal Disability Insurance

11 Trust Fund shall cease to exist, any balance in such

12 Account shall revert to funds otherwise available in

13 such Trust Fund, and sections 201 and 221 of the

14 Social Security Act shall read as if the amendments

15 made by subsection (a) had not been enacted.

16 (c) OFFICE OF CHIEF ACTUARY IN THE SOCIAL SE17 CURITY ADMINISTRATION.—

18 (1) IN GENERAL.—Section 702 of such Act (42

19 U.S.C. 902) is amended—

20 (A) by redesignating subsections (c) and

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

22 (B) by inserting after subsection (b) the

23 following new subsection:
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1 ‘‘Chief Actuary

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

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

4 authority to, the Commissioner. The Chief Actuary shall

5 be appointed from individuals who have demonstrated, by

6 their education and experience, superior expertise in the

7 actuarial sciences. The Chief Actuary shall serve as the

8 chief actuarial officer of the Administration, and shall ex9 ercise such duties as are appropriate for the office of the

10 Chief Actuary and in accordance with professional stand11 ards of actuarial independence. The Chief Actuary may

12 be removed only for cause.

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

14 highest rate of basic pay for the Senior Executive Service

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

16 (2) EFFECTIVE DATE OF SUBSECTION.—The

17 amendments made by this subsection shall take ef18 fect on the date of the enactment of this Act.

19 SEC. 4. ENTITLEMENT OF STEPCHILDREN TO CHILD’S IN20 SURANCE BENEFITS BASED ON ACTUAL DE21 PENDENCY ON STEPPARENT SUPPORT.

22 (a) REQUIREMENT OF ACTUAL DEPENDENCY FOR

23 FUTURE ENTITLEMENTS.—
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1 (1) IN GENERAL.—Section 202(d)(4) of the So2 cial Security Act (42 U.S.C. 402(d)(4)) is amended

3 by striking ‘‘was living with or’’.

4 (2) EFFECTIVE DATE.—The amendment made

5 by paragraph (1) shall apply with respect to benefits

6 of individuals who become entitled to such benefits

7 for months after the third month following the

8 month in which this Act is enacted.

9 (b) TERMINATION OF CHILD’S INSURANCE BENE10 FITS BASED ON WORK RECORD OF STEPPARENT UPON

11 NATURAL PARENT’S DIVORCE FROM STEPPARENT.—

12 (1) IN GENERAL.—Section 202(d)(1) of the So13 cial Security Act (42 U.S.C. 402(d)(1)) is amend14 ed—

15 (A) by striking ‘‘or’’ at the end of subpara16 graph (F);

17 (B) by striking the period at the end of

18 subparagraph (G) and inserting ‘‘; or’’; and

19 (C) by inserting after subparagraph (G)

20 the following new subparagraph:

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

22 based on the wages and self-employment income of

23 a stepparent who is subsequently divorced from such

24 child’s natural parent, the sixth month after the
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1 month in which the Commissioner of Social Security

2 receives formal notification of such divorce.’’.

3 (2) EFFECTIVE DATE.—The amendments made

4 by this subsection shall apply with respect to notifi5 cations of divorces received by the Commissioner of

6 Social Security on or after the date of the enactment

7 of this Act.

8 SEC. 5. RECOMPUTATION OF BENEFITS AFTER NORMAL

9 RETIREMENT AGE.

10 (a) IN GENERAL.—Section 215(f)(2)(D)(i) of the So11 cial Security Act (42 U.S.C. 415(f)(2)(D)(i)) is amended

12 to read as follows:

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

14 in the year with respect to which the recomputation

15 is made, for monthly benefits beginning with bene16 fits for January of—

17 ‘‘(I) the second year following the year

18 with respect to which the recomputation is

19 made, in any such case in which the individual

20 is entitled to old-age insurance benefits, the in21 dividual has attained retirement age (as defined

22 in section 216(l)) as of the end of the year pre23 ceding the year with respect to which the re24 computation is made, and the year with respect

25 to which the recomputation is made would not
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1 be substituted in recomputation under this sub2 section for a benefit computation year in which

3 no wages or self-employment income have been

4 credited previously to such individual, or

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

6 respect to which the recomputation is made, in

7 any other such case; or’’.

8 (b) CONFORMING AMENDMENTS.—

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

10 415(f)(7)) is amended by inserting ‘‘, and as

11 amended by section 5(b)(2) of the Senior Citizens’

12 Right to Work Act of 1995,’’ after ‘‘This subsection

13 as in effect in December 1978’’.

14 (2) Subparagraph (A) of section 215(f)(2) of

15 the Social Security Act as in effect in December

16 1978 and applied in certain cases under the provi17 sions of such Act as in effect after December 1978

18 is amended—

19 (A) by striking ‘‘in the case of an individ20 ual who did not die’’ and all that follows and

21 inserting ‘‘in the case of an individual who did

22 not die in the year with respect to which the re23 computation is made, for monthly benefits be24 ginning with benefits for January of—’’; and

25 (B) by adding at the end the following:
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1 ‘‘(i) the second year following the year with

2 respect to which the recomputation is made, in

3 any such case in which the individual is entitled

4 to old-age insurance benefits, the individual has

5 attained age 65 as of the end of the year pre6 ceding the year with respect to which the re7 computation is made, and the year with respect

8 to which the recomputation is made would not

9 be substituted in recomputation under this sub10 section for a benefit computation year in which

11 no wages or self-employment income have been

12 credited previously to such individual, or

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

14 respect to which the recomputation is made, in

15 any other such case; or’’.

16 (c) EFFECTIVE DATE.—The amendments made by

17 this section shall apply with respect to recomputations of

18 primary insurance amounts based on wages paid and self

19 employment income derived after 1994 and with respect

20 to 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

14 to 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

5 the claimant and such person, agent, or attorney a written

6 notice 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

12 connection 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),

18 by striking ‘‘representation,’’ and all that follows

19 and inserting the following: ‘‘representation. In de20 termining a reasonable fee, the court shall take into

21 consideration the amount of the fee, if any, that

22 such attorney, or any other person, agent, or attor23 ney, may charge the claimant for services performed

24 in connection with the claimant’s claim when it was

25 pending 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 sen12 tence.

13 (3) Section 1631(d)(2)(A) of such Act (42

14 U.S.C. 1383(d)(2)(A)) is amended—

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

16 thereof)’’; and

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

18 and inserting a period.

19 (d) EFFECTIVE DATE.—The amendments made by

20 this section shall apply with respect to—

21 (1) any claim for benefits under the old-age,

22 survivors, and disability insurance program under

23 title II of the Social Security Act, the supplemental

24 security income program under title XVI of such

25 Act, or the black lung program under part B of the
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1 Black Lung Benefits Act that is initially filed on or

2 after the 60th day following the date of the enact3 ment of this Act, and

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

5 60th day by a claimant who is first represented by

6 any person, agent, or attorney in connection with

7 such claim on or after such 60th day.

8 SEC. 7. DENIAL OF DISABILITY BENEFITS TO DRUG AD9 DICTS AND ALCOHOLICS.

10 (a) AMENDMENTS RELATING TO TITLE II DISABIL11 ITY BENEFITS.—

12 (1) IN GENERAL.—Section 223(d)(2) of the So13 cial Security Act (42 U.S.C. 423(d)(2)) is amended

14 by adding at the end the following:

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

16 disabled for purposes of this title if alcoholism or

17 drug addiction would (but for this subparagraph) be

18 a contributing factor material to the Commissioner’s

19 determination that the individual is disabled.’’.

20 (2) REPRESENTATIVE PAYEE REQUIRE21 MENTS.—

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

23 U.S.C. 405(j)(1)(B)) is amended to read as fol24 lows:
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1 ‘‘(B) In the case of an individual entitled to benefits

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

3 made to a representative payee if the Commissioner of So4 cial Security determines that such payment would serve

5 the interest of the individual because the individual also

6 has an alcoholism or drug addiction condition (as deter7 mined by the Commissioner) that prevents the individual

8 from managing such benefits.’’.

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

10 (42 U.S.C. 405(j)(2)(C)(v)) is amended by

11 striking ‘‘entitled to benefits’’ and all that fol12 lows through ‘‘under a disability’’ and inserting

13 ‘‘described in paragraph (1)(B)’’.

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

15 Act (42 U.S.C. 405(j)(2)(D)(ii)(II)) is amended

16 by striking all that follows ‘‘15 years, or’’ and

17 inserting ‘‘described in paragraph (1)(B).’’.

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

19 405(j)(4)(A)(ii)(II)) is amended by striking

20 ‘‘entitled to benefits’’ and all that follows

21 through ‘‘under a disability’’ and inserting ‘‘de22 scribed in paragraph (1)(B)’’.

23 (3) TREATMENT REFERRALS FOR INDIVIDUALS

24 WITH AN ALCOHOLISM OR DRUG ADDICTION CONDI25 TION.—Section 222 of such Act (42 U.S.C. 422) is
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1 amended by adding at the end the following new

2 subsection:

3 ‘‘Treatment Referrals for Individuals with an Alcoholism

4 or Drug Addiction Condition

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

6 under this title are paid to a representative payee pursu7 ant to section 205(j)(1)(B), the Commissioner of Social

8 Security shall refer such individual to the appropriate

9 State agency administering the State plan for substance

10 abuse treatment services approved under subpart II of

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

12 U.S.C. 300x–21 et seq.).’’.

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

14 of section 225 of such Act (42 U.S.C. 425(c)) is re15 pealed.

16 (5) EFFECTIVE DATES.—

17 (A) The amendments made by paragraphs

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

19 insurance benefits under title II of the Social

20 Security Act based on disability for months be21 ginning after the date of the enactment of this

22 Act, except that, in the case of individuals who

23 are entitled to such benefits for the month in

24 which this Act is enacted, such amendments

25 shall apply only with respect to such benefits
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1 for months beginning on or after January 1,

2 1997.

3 (B) The amendments made by paragraphs

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

5 for which applications are filed on or after the

6 date of the enactment of this Act.

7 (C) If an individual who is entitled to

8 monthly insurance benefits under title II of the

9 Social Security Act based on disability for the

10 month in which this Act is enacted and whose

11 entitlement to such benefits would terminate by

12 reason of the amendments made by this sub13 section reapplies for benefits under title II of

14 such Act (as amended by this Act) based on

15 disability within 120 days after the date of the

16 enactment of this Act, the Commissioner of So17 cial Security shall, not later than January 1,

18 1997, complete the entitlement redetermination

19 with respect to such individual pursuant to the

20 procedures of such title.

21 (b) AMENDMENTS RELATING TO SSI BENEFITS.—

22 (1) IN GENERAL.—Section 1614(a)(3) of the

23 Social Security Act (42 U.S.C. 1382c(a)(3)) is

24 amended by adding at the end the following:
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1 ‘‘(I) Notwithstanding subparagraph (A), an individ2 ual shall not be considered to be disabled for purposes of

3 this title if alcoholism or drug addiction would (but for

4 this subparagraph) be a contributing factor material to

5 the Commissioner’s determination that the individual is

6 disabled.’’.

7 (2) REPRESENTATIVE PAYEE REQUIRE8 MENTS.—

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

10 Act (42 U.S.C. 1383(a)(2)(A)(ii)(II)) is amend11 ed to read as follows:

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

13 under this title by reason of disability, the payment of

14 such benefits shall be made to a representative payee if

15 the Commissioner of Social Security determines that such

16 payment would serve the interest of the individual because

17 the individual also has an alcoholism or drug addiction

18 condition (as determined by the Commissioner) that pre19 vents the individual from managing such benefits.’’.

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

21 (42 U.S.C. 1383(a)(2)(B)(vii)) is amended by

22 striking ‘‘eligible for benefits’’ and all that fol23 lows through ‘‘is disabled’’ and inserting ‘‘de24 scribed in subparagraph (A)(ii)(II)’’.
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1 (C) Section 1631(a)(2)(B)(ix)(II) of such

2 Act (42 U.S.C. 1383(a)(2)(B)(ix)(II)) is

3 amended by striking all that follows ‘‘15 years,

4 or’’ and inserting ‘‘described in subparagraph

5 (A)(ii)(II).’’.

6 (D) Section 1631(a)(2)(D)(i)(II) of such

7 Act (42 U.S.C. 1383(a)(2)(D)(i)(II)) is amend8 ed by striking ‘‘eligible for benefits’’ and all

9 that follows through ‘‘is disabled’’ and inserting

10 ‘‘described in subparagraph (A)(ii)(II)’’.

11 (3) TREATMENT SERVICES FOR INDIVIDUALS

12 WITH A SUBSTANCE ABUSE CONDITION.—Title XVI

13 of such Act (42 U.S.C. 1381 et seq.) is amended by

14 adding at the end the following new section:

15 ‘‘TREATMENT SERVICES FOR INDIVIDUALS WITH A

16 SUBSTANCE ABUSE CONDITION

17 ‘‘SEC. 1636. In the case of any individual whose bene18 fits under this title are paid to a representative payee pur19 suant to section 1631(a)(2)(A)(ii)(II), the Commissioner

20 of Social Security shall refer such individual to the appro21 priate State agency administering the State plan for sub22 stance abuse treatment services approved under subpart

23 II of part B of title XIX of the Public Health Service Act

24 (42 U.S.C. 300x–21 et seq.).’’.

25 (4) CONFORMING AMENDMENTS.—
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1 (A) Section 1611(e) of such Act (42

2 U.S.C. 1382(e)) is amended by striking para3 graph (3).

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

5 1383c) is amended by striking subsection (e).

6 (5) EFFECTIVE DATES.—

7 (A) The amendments made by paragraphs

8 (1) and (4) shall apply with respect to supple9 mental security income benefits under title XVI

10 of the Social Security Act based on disability

11 for months beginning after the date of the en12 actment of this Act, except that, in the case of

13 individuals who are eligible for such benefits for

14 the month in which this Act is enacted, such

15 amendments shall apply only with respect to

16 such benefits for months beginning on or after

17 January 1, 1997.

18 (B) The amendments made by paragraphs

19 (2) and (3) shall apply with respect to supple20 mental security income benefits under title XVI

21 of the Social Security Act for which applica22 tions are filed on or after the date of the enact23 ment of this Act.

24 (C) If an individual who is eligible for sup25 plemental security income benefits under title
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1 XVI of the Social Security Act for the month

2 in which this Act is enacted and whose eligi3 bility for such benefits would terminate by rea4 son of the amendments made by this subsection

5 reapplies for supplemental security income ben6 efits under title XVI of such Act (as amended

7 by this Act) within 120 days after the date of

8 the enactment of this Act, the Commissioner of

9 Social Security shall, not later than January 1,

10 1997, complete the eligibility redetermination

11 with respect to such individual pursuant to the

12 procedures of such title.

13 (D) For purposes of this paragraph, the

14 phrase ‘‘supplemental security income benefits

15 under title XVI of the Social Security Act’’ in16 cludes supplementary payments pursuant to an

17 agreement for Federal administration under

18 section 1616(a) of the Social Security Act and

19 payments pursuant to an agreement entered

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

21 (c) CONFORMING AMENDMENT.—Section 201(c) of

22 the Social Security Independence and Program Improve23 ments Act of 1994 (42 U.S.C. 425 note) is repealed.

24 (d) SUPPLEMENTAL FUNDING FOR ALCOHOL AND

25 SUBSTANCE ABUSE TREATMENT PROGRAMS.—
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1 (1) IN GENERAL.—Out of any money in the

2 Treasury not otherwise appropriated, there are here3 by appropriated to supplement State and Tribal pro4 grams funded under section 1933 of the Public

5 Health Service Act (42 U.S.C. 300x–33),

6 $100,000,000 for each of the fiscal years 1997 and

7 1998.

8 (2) ADDITIONAL FUNDS.—Amounts appro9 priated under paragraph (1) shall be in addition to

10 any funds otherwise appropriated for allotments

11 under section 1933 of the Public Health Service Act

12 (42 U.S.C. 300x–33) and shall be allocated pursuant

13 to such section 1933.

14 (3) USE OF FUNDS.—A State or Tribal govern15 ment receiving an allotment under this subsection

16 shall consider as priorities, for purposes of expend17 ing funds allotted under this subsection, activities

18 relating to the treatment of the abuse of alcohol and

19 other drugs.

20 SEC. 8. REVOCATION BY MEMBERS OF THE CLERGY OF EX21 EMPTION FROM SOCIAL SECURITY COV22 ERAGE.

23 (a) IN GENERAL.—Notwithstanding section

24 1402(e)(4) of the Internal Revenue Code of 1986, any ex25 emption which has been received under section 1402(e)(1)
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1 of such Code by a duly ordained, commissioned, or li2 censed minister of a church, a member of a religious order,

3 or a Christian Science practitioner, and which is effective

4 for the taxable year in which this Act is enacted, may be

5 revoked by filing an application therefor (in such form and

6 manner, and with such official, as may be prescribed in

7 regulations made under chapter 2 of such Code), if such

8 application is filed no later than the due date of the Fed9 eral income tax return (including any extension thereof)

10 for the applicant’s second taxable year beginning after De11 cember 31, 1995. Any such revocation shall be effective

12 (for purposes of chapter 2 of the Internal Revenue Code

13 of 1986 and title II of the Social Security Act), as speci14 fied in the application, either with respect to the appli15 cant’s first taxable year beginning after December 31,

16 1995, or with respect to the applicant’s second taxable

17 year beginning after such date, and for all succeeding tax18 able years; and the applicant for any such revocation may

19 not thereafter again file application for an exemption

20 under such section 1402(e)(1). If the application is filed

21 after the due date of the applicant’s Federal income tax

22 return for a taxable year and is effective with respect to

23 that taxable year, it shall include or be accompanied by

24 payment in full of an amount equal to the total of the

25 taxes that would have been imposed by section 1401 of
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1 the Internal Revenue Code of 1986 with respect to all of

2 the applicant’s income derived in that taxable year which

3 would have constituted net earnings from self-employment

4 for purposes of chapter 2 of such Code (notwithstanding

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

6 exemption under section 1402(e)(1) of such Code.

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

8 with respect to service performed (to the extent specified

9 in such subsection) in taxable years beginning after De10 cember 31, 1995, and with respect to monthly insurance

11 benefits payable under title II of the Social Security Act

12 on the basis of the wages and self-employment income of

13 any individual for months in or after the calendar year

14 in which such individual’s application for revocation (as

15 described in such subsection) is effective (and lump-sum

16 death payments payable under such title on the basis of

17 such wages and self-employment income in the case of

18 deaths occurring in or after such calendar year).

19 SEC. 9. PILOT STUDY OF EFFICACY OF PROVIDING INDIVID20 UALIZED INFORMATION TO RECIPIENTS OF

21 OLD-AGE AND SURVIVORS INSURANCE BENE22 FITS.

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

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

25 Security shall conduct a pilot study of the efficacy of pro-
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1 viding certain individualized information to recipients of

2 monthly insurance benefits under section 202 of the Social

3 Security Act, designed to promote better understanding

4 of their contributions and benefits under the social secu5 rity system. The study shall involve solely beneficiaries

6 whose entitlement to such benefits first occurred in or

7 after 1984 and who have remained entitled to such bene8 fits for a continuous period of not less than 5 years. The

9 number of such recipients involved in the study shall be

10 of sufficient size to generate a statistically valid sample

11 for purposes of the study, but shall not exceed 600,000

12 beneficiaries.

13 (b) ANNUALIZED STATEMENTS.—During the course

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

15 the beneficiaries involved in the study one annualized

16 statement, setting forth the following information:

17 (1) an estimate of the aggregate wages and

18 self-employment income earned by the individual on

19 whose wages and self-employment income the benefit

20 is based, as shown on the records of the Commis21 sioner as of the end of the last calendar year ending

22 prior to the beneficiary’s first month of entitlement;

23 (2) an estimate of the aggregate of the em24 ployee and self-employment contributions, and the

25 aggregate of the employer contributions (separately
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1 identified), made with respect to the wages and self2 employment income on which the benefit is based, as

3 shown on the records of the Commissioner as of the

4 end of the calendar year preceding the beneficiary’s

5 first month of entitlement; and

6 (3) an estimate of the total amount paid as

7 benefits under section 202 of the Social Security Act

8 based on such wages and self-employment income, as

9 shown on the records of the Commissioner as of the

10 end of the last calendar year preceding the issuance

11 of the statement for which complete information is

12 available.

13 (b) INCLUSION WITH MATTER OTHERWISE DISTRIB14 UTED TO BENEFICIARIES.—The Commissioner shall en15 sure that reports provided pursuant to this subsection are,

16 to the maximum extent practicable, included with other

17 reports currently provided to beneficiaries on an annual

18 basis.

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

20 shall report to each House of the Congress regarding the

21 results of the pilot study conducted pursuant to this sec-
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1 tion not later than 60 days after the completion of such

2 study.

Passed the House of Representatives December 5,

1995.

Attest: ROBIN H. CARLE,

Clerk.

By LINDA NAVE,

Deputy Clerk.

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