103D CONGRESS

2D SESSION H. R. 4277

AN ACT

To establish the Social Security Administration as

ity insurance program.provements in the old-age, survivors, and disabilan independent agency and to make other im-
103D CONGRESS

2D SESSION H. R. 4277

AN ACT

To establish the Social Security Administration as an independent agency and to make other improvements in the

old-age, survivors, and disability insurance program.

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 AND TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Social Security Administrative Reform Act of 1994’’.
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1 (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.
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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.

1 SEC. 2. DECLARATION OF PURPOSES.

2 The purposes of this Act are as follows:

3 (1) To establish the Social Security Administra4 tion as an independent agency, separate from the

5 Department of Health and Human Services.

6 (2) To charge the Social Security Administra7 tion with administration of the old-age, survivors,

8 and disability insurance program and supplemental

9 security income program.
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1 (3) To establish a Social Security board as head

2 of the Social Security Administration and define the

3 powers and duties of such Board.

4 (4) To establish an Executive Director of the

5 Administration and define the powers and duties of

6 the Executive Director.

7 (5) To provide for delegating major authorities

8 to the Board and the Executive Director.

9 (6) To make other improvements in the old-age,

10 survivors, and disability insurance program under

11 title II of the Social Security Act.

12 TITLE I—ESTABLISHMENT OF

13 THE SOCIAL SECURITY AD14 MINISTRATION AS AN INDE15 PENDENT AGENCY

16 SEC. 101. ESTABLISHMENT OF THE SOCIAL SECURITY AD17 MINISTRATION AS A SEPARATE, INDEPEND18 ENT AGENCY; RESPONSIBILITIES OF THE

19 AGENCY.

20 Section 701 of the Social Security Act (42 U.S.C.

21 901) is amended to read as follows:

22 ‘‘SOCIAL SECURITY ADMINISTRATION

23 ‘‘SEC. 701. There is hereby established, as an inde24 pendent agency in the executive branch of the Govern25 ment, a Social Security Administration. It shall be the

26 duty of the Administration to administer the old-age, sur-
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1 vivors, and disability insurance program under title II and

2 the supplemental security income program under title

3 XVI.’’.

4 SEC. 102. SOCIAL SECURITY BOARD, EXECUTIVE DIRECTOR,

5 DEPUTY DIRECTOR, BENEFICIARY OMBUDS6 MAN; OTHER OFFICERS.

7 (a) IN GENERAL.—Section 702 of the Social Security

8 Act (42 U.S.C. 902) is amended to read as follows:

9 ‘‘SOCIAL SECURITY BOARD; EXECUTIVE DIRECTOR;

10 OTHER OFFICERS

11 ‘‘Social Security Board

12 ‘‘SEC. 702. (a)(1)(A) The Administration shall be

13 governed by a Social Security Board. The Board shall be

14 composed of three members appointed by the President,

15 by and with the advice and consent of the Senate. The

16 members shall be chosen on the basis of their integrity,

17 impartiality, and good judgment, and shall be individuals

18 who are, by reason of their education, experience, and at19 tainments, exceptionally qualified to perform the duties of

20 members of the Board.

21 ‘‘(B)(i) Except as provided in clauses (ii) and (iii),

22 members of the Board shall be appointed for terms of six

23 years. A member of the Board may be removed only pur24 suant to a finding by the President of neglect of duty or

25 malfeasance in office. The President shall transmit any

26 such finding to the Speaker of the House of Representa-
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1 tives and the majority leader of the Senate not later than

2 five days after the date on which such finding is made.

3 ‘‘(ii) Of the members first appointed—

4 ‘‘(I) one shall be appointed for a term of 2

5 years,

6 ‘‘(II) one shall be appointed for a term of 4

7 years, and

8 ‘‘(III) one shall be appointed for a term of 6

9 years,

10 as designated by the President at the time of appointment.

11 Such members shall be appointed after active consider12 ation of recommendations made by the chairman of the

13 Committee on Ways and Means of the House of Rep14 resentatives and of recommendations made by the chair15 man of the Committee on Finance of the Senate.

16 ‘‘(iii) The President may not nominate an individual

17 for appointment to a term of office as member of the

18 Board before the commencement of the President’s term

19 of office in which the member’s term of office commences.

20 Any member appointed to a term of office after the com21 mencement of such term may serve under such appoint22 ment only for the remainder of such term. A member may,

23 at the request of the President, serve for not more than

24 one year after the expiration of his or her term until his
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1 or her successor has taken office. A member of the Board

2 may be appointed for additional terms.

3 ‘‘(C) Not more than two members of the Board shall

4 be of the same political party.

5 ‘‘(D) A member of the Board may not, during his

6 or her term as member, engage in any other business, vo7 cation, profession, or employment. A member of the Board

8 may continue as a member of the Board for not longer

9 than the 30-day period beginning on the date such mem10 ber first fails to meet the requirements of the preceding

11 sentence.

12 ‘‘(E) Two members of the Board shall constitute a

13 quorum, except that one member may hold hearings.

14 ‘‘(F) A member of the Board shall be designated by

15 the President to serve as Chairperson of the Board for

16 a term of 4 years.

17 ‘‘(G) The Board shall meet at the call of the Chair18 person or two members of the Board.

19 ‘‘(2) Each member of the Board shall be compensated

20 at the rate provided for level II of the Executive Schedule.

21 ‘‘(3) The Board shall—

22 ‘‘(A) govern by regulation the old-age, survi23 vors, and disability insurance program under title II

24 and the supplemental security income program

25 under title XVI,
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1 ‘‘(B) establish the Administration and oversee

2 its efficient and effective operation,

3 ‘‘(C) establish policy and devise long-term plans

4 to promote and maintain the effective implementa5 tion of programs referred to in subparagraph (A),

6 ‘‘(D) appoint an Executive Director of the Ad7 ministration, as described in subsection (b), to act as

8 the chief operating officer of the Administration re9 sponsible for administering the programs referred to

10 in subparagraph (A),

11 ‘‘(E) constitute three of the members of the

12 Board of Trustees of the Federal Old-Age and Sur13 vivors Insurance Trust Fund and the Federal Dis14 ability Insurance Trust Fund, with the Chairperson

15 of the Social Security Board serving as Chairperson

16 of such Board of Trustees,

17 ‘‘(F) prepare an annual budget for the Admin18 istration, which shall be submitted by the President

19 to the Congress without revision, together with the

20 President’s annual budget for the Administration,

21 ‘‘(G) study and make recommendations to the

22 Congress and the President as to the most effective

23 methods of providing economic security through so24 cial insurance, supplemental security income, and re25 lated programs and as to legislation and matters of
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1 administrative policy concerning the programs re2 ferred to in subparagraph (A),

3 ‘‘(H) provide the Congress and the President

4 with the ongoing actuarial and other analysis under5 taken by the Administration with respect to the pro6 grams referred to in subparagraph (A) and any

7 other information relating to such programs, and

8 ‘‘(I) conduct policy analysis and research relat9 ing to the programs referred to in subparagraph

10 (A).

11 ‘‘(4)(A) The Board may prescribe such rules and reg12 ulations as the Board determines necessary or appropriate

13 to carry out the functions of the Administration. The reg14 ulations prescribed by the Board shall be subject to the

15 rulemaking procedures established under section 553 of

16 title 5, United States Code.

17 ‘‘(B) The Board may establish, alter, consolidate, or

18 discontinue such organizational units or components with19 in the Administration as the Board considers necessary

20 or appropriate to carry out its functions, except that this

21 subparagraph shall not apply with respect to any unit,

22 component, or position provided for by this Act.

23 ‘‘(C) The Board may, with respect to the administra24 tion of the old-age, survivors, and disability insurance pro25 gram under title II and the supplemental security income
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1 program under title XVI, assign duties, and delegate, or

2 authorize successive redelegations of, authority to act and

3 to render decisions, to such officers and employees as the

4 Board may find necessary. Within the limitations of such

5 delegations, redelegations, or assignments, all official acts

6 and decisions of such officers and employees shall have

7 the same force and effect as though performed or rendered

8 by the Board.

9 ‘‘Executive Director

10 ‘‘(b)(1) There shall be in the Administration an Exec11 utive Director who shall be appointed by the Social Secu12 rity Board.

13 ‘‘(2)(A) The Executive Director shall be appointed

14 for a term of four years. An individual appointed to a term

15 of office as Executive Director after the commencement

16 of such term of office may serve under such appointment

17 only for the remainder of such term. An individual may,

18 at the request of the Chairperson of the Board, serve as

19 Executive Director after the expiration of his or her term

20 for not more than one year until his or her successor has

21 taken office. An individual may be appointed as Executive

22 Director for additional terms.

23 ‘‘(B) An individual may be removed from the office

24 of Executive Director before completion of his or her term

25 only for cause found by the Board.
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1 ‘‘(3) The Executive Director shall be compensated at

2 the rate provided for level II of the Executive Schedule.

3 ‘‘(4) The Executive Director shall—

4 ‘‘(A) constitute the chief operating officer of the

5 Administration, responsible for administering, in ac6 cordance with applicable statutes and regulations,

7 the old-age, survivors, and disability insurance pro8 gram under title II and the supplemental security

9 income program under title XVI,

10 ‘‘(B) maintain an efficient and effective oper11 ational structure for the Administration,

12 ‘‘(C) implement the long-term plans of the

13 Board to promote and maintain the effective imple14 mentation of such programs,

15 ‘‘(D) report annually to the Board on program

16 costs under titles II and XVI, make annual budg17 etary recommendations to the Board for the ongoing

18 administrative costs of the Administration under this

19 Act, and defend the recommendations before the

20 Board,

21 ‘‘(E) advise the Board and the Congress on the

22 effect on the administration of such programs of

23 proposed legislative changes in such programs,

24 ‘‘(F) serve as Secretary of the Board of Trust25 ees of the Federal Old-Age and Survivors Insurance
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1 Trust Fund and the Federal Disability Insurance

2 Trust Fund,

3 ‘‘(G) report in December of each year to the

4 Board for transmittal to the Congress concerning

5 the administrative endeavors and accomplishments

6 of the Administration, and

7 ‘‘(H) carry out such additional duties as are as8 signed by the Board from time to time.

9 Any reference to the Board in this Act or any other provi10 sion of law in connection with the exercise of a function

11 of the Board which is delegated to the Executive Director

12 pursuant to this section shall be considered a reference

13 to the Executive Director.

14 ‘‘Deputy Director of Social Security

15 ‘‘(c)(1) There shall be in the Office of the Executive

16 Director a Deputy Director, who shall be appointed by and

17 serve at the pleasure of the Executive Director.

18 ‘‘(2) The Deputy Director shall be compensated at

19 the rate provided for level III of the Executive Schedule.

20 ‘‘(3) The Deputy Director shall perform such duties

21 and exercise such powers as the Executive Director shall

22 from time to time assign or delegate. The Deputy Director

23 shall be Acting Executive Director of the Administration

24 during the absence or disability of the Executive Director

25 and, unless the Board designates another officer of the
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1 Government as Acting Executive Director, in the event of

2 a vacancy in the office of the Executive Director.

3 ‘‘General Counsel

4 ‘‘(d)(1) There shall be in the Administration a Gen5 eral Counsel, who shall be appointed by and serve at the

6 pleasure of the Board. The General Counsel shall be the

7 principal legal officer in the Administration.

8 ‘‘(2) The General Counsel shall be compensated at

9 the rate provided for level IV of the Executive Schedule.

10 ‘‘Inspector General

11 ‘‘(e)(1) There shall be in the Administration an Office

12 of the Inspector General. Such Office shall be headed by

13 an Inspector General appointed in accordance with the In14 spector General Act of 1978.

15 ‘‘(2) The Inspector General shall be compensated at

16 the rate provided for level IV of the Executive Schedule.

17 ‘‘Beneficiary Ombudsman

18 ‘‘(f)(1) There shall be in the Administration an Office

19 of the Beneficiary Ombudsman, to be headed by a Bene20 ficiary Ombudsman appointed by the Board.

21 ‘‘(2)(A) The Beneficiary Ombudsman shall be ap22 pointed for a term of five years, except that the individual

23 first appointed to the Office of Beneficiary Ombudsman

24 shall be appointed for a term ending September 30, 2000.

25 An individual appointed to a term of office as Beneficiary
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1 Ombudsman after the commencement of such term may

2 serve under such appointment only for the remainder of

3 such term. An individual may, at the request of the Chair4 person of the Board, serve as Beneficiary Ombudsman

5 after the expiration of his or her term for not more than

6 one year until his or her successor has taken office. An

7 individual may be appointed as Beneficiary Ombudsman

8 for additional terms.

9 ‘‘(B) An individual may be removed from the office

10 of Beneficiary Ombudsman before completion of his or her

11 term only for cause found by the Board.

12 ‘‘(3) The Beneficiary Ombudsman shall be com13 pensated at the rate provided for level V of the Executive

14 Schedule.

15 ‘‘(4) The duties of the Beneficiary Ombudsman are

16 as follows:

17 ‘‘(A) To represent within the Administration’s

18 decisionmaking process the interests and concerns of

19 beneficiaries under the old-age, survivors, and dis20 ability insurance program under title II and the sup21 plemental security income program under title XVI.

22 ‘‘(B) To review the Administration’s policies

23 and procedures for possible adverse effects on such

24 beneficiaries.
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1 ‘‘(C) To recommend within the Administration’s

2 decisionmaking process changes in policies which

3 have caused problems for such beneficiaries.

4 ‘‘(D) To help resolve the problems under such

5 programs of individual beneficiaries in unusual or

6 difficult circumstances, as determined by the Admin7 istration.

8 ‘‘(E) To represent within the Administration’s

9 decisionmaking process the views of beneficiaries in

10 the design of forms and the issuance of instructions.

11 ‘‘(5) The Board shall assure that the Office of the

12 Beneficiary Ombudsman has staff sufficient to enable the

13 Beneficiary Ombudsman to efficiently carry out his or her

14 duties. Such staff shall be located in the regional offices,

15 program centers, and central office of the Administration.

16 ‘‘(6) The annual report of the Board under section

17 704 shall include a description of the activities of the Ben18 eficiary Ombudsman.

19 ‘‘Administrative Law Judge

20 ‘‘(g)(1) There shall be in the Administration an Of21 fice of the Chief Administrative Law Judge, who shall be

22 appointed by the Board. The duty of the Chief Adminis23 trative Law Judge shall be to administer the affairs of

24 the administrative law judges serving in the Administra25 tion in a manner so as to ensure that hearings and other
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1 business are conducted by the administrative law judges

2 in accordance with applicable law and regulations.

3 ‘‘(2) The Chief Administrative Law Judge shall re4 port directly to the Board.’’.

5 (b) CONFORMING AMENDMENTS RELATING TO COM6 POSITION OF BOARD OF TRUSTEES OF OASDI TRUST

7 FUNDS.—Section 201(c) of such Act (42 U.S.C. 401(c))

8 is amended—

9 (1) in the first sentence, by striking ‘‘shall be

10 composed of’’ and all that follows down through ‘‘ex

11 officio’’ and inserting the following: ‘‘shall be com12 posed of the members of the Social Security Board,

13 the Secretary of the Treasury, the Secretary of

14 Health and Human Services, all ex officio’’;

15 (2) by inserting after the first sentence the fol16 lowing new sentence: ‘‘The Chairperson of the Social

17 Security Board shall be the Chairperson of the

18 Board of Trustees.’’; and

19 (3) by striking ‘‘Commissioner of Social Secu20 rity’’ and inserting ‘‘Executive Director of the Social

21 Security Administration’’.

22 (c) INTERIM AUTHORITY OF THE COMMISSIONER.—

23 The President shall nominate for appointment the initial

24 members of the Social Security Board not later than April

25 1, 1995. In the event that, as of October 1, 1995, all mem-
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1 bers of the Social Security Board have not entered upon

2 office, until all members of the Board have entered upon

3 office, the officer serving on October 1, 1995, as Commis4 sioner of Social Security in the Department of Health and

5 Human Services (or Acting Commissioner, if applicable),

6 or such officer’s successor, shall, while continuing to serve

7 as Commissioner of Social Security (or Acting Commis8 sioner) in such Department, serve as head of the Social

9 Security Administration established under section 701 of

10 the Social Security Act (as amended by this Act) and shall

11 assume the powers and duties of such Board and of the

12 Executive Director under such Act (as amended by this

13 Act).

14 SEC. 103. PERSONNEL; BUDGETARY MATTERS; SEAL OF

15 OFFICE.

16 Section 703 of the Social Security Act (42 U.S.C.

17 903) is amended to read as follows:

18 ‘‘ADMINISTRATIVE DUTIES OF THE SOCIAL SECURITY

19 BOARD

20 ‘‘Personnel

21 ‘‘SEC. 703. (a)(1) The Social Security Board shall

22 appoint such additional officers and employees as it con23 siders necessary to carry out its functions. Except as oth24 erwise provided in any other provision of law, such officers

25 and employees shall be appointed, and their compensation
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1 shall be fixed, in accordance with title 5, United States

2 Code.

3 ‘‘(2) The Board may procure the services of experts

4 and consultants in accordance with the provisions of sec5 tion 3109 of title 5, United States Code.

6 ‘‘(3) The Director of the Office of Personnel Manage7 ment shall authorize for the Administration a total num8 ber of Senior Executive Service positions which is greater

9 than the number of such positions authorized in the Social

10 Security Administration in the Department of Health and

11 Human Services as of immediately before the date of the

12 enactment of the Social Security Administrative Reform

13 Act of 1994, to the extent that the greater number of such

14 authorized positions is specified in the comprehensive

15 workforce plan as established and revised by the Board

16 under subsection (b)(1). The total number of such posi17 tions authorized for the Administration pursuant to such

18 section 3133 shall not at any time be less than the number

19 of such authorized positions as of immediately before such

20 date.

21 ‘‘(4) In addition to the positions of the Administra22 tion in the Executive Schedule specified in section 702,

23 the Administration is authorized six additional positions

24 at level IV of the Executive Schedule and six additional

25 positions at level V of the Executive Schedule.
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1 ‘‘Budgetary Matters

2 ‘‘(b) Appropriations requests for staffing and person3 nel of the Administration shall be based upon a com4 prehensive workforce plan, which shall be established and

5 revised from time to time by the Board.

6 ‘‘Seal of Office

7 ‘‘(c) The Board shall cause a seal of office to be made

8 for the Administration of such design as the Board shall

9 approve. Judicial notice shall be taken of such seal.’’.

10 SEC. 104. TRANSFERS TO THE NEW SOCIAL SECURITY

11 ADMINISTRATION.

12 (a) FUNCTIONS.—There are transferred to the Social

13 Security Administration all functions carried out by the

14 Secretary of Health and Human Services with respect to

15 the programs and activities the administration of which

16 is vested in the Social Security Administration by reason

17 of this Act and the amendments made thereby. The Social

18 Security Board shall allocate such functions in accordance

19 with sections 701, 702, and 703 of the Social Security

20 Act (as amended by this Act).

21 (b) PERSONNEL, ASSETS, ETC.—(1) There are trans22 ferred from the Department of Health and Human Serv23 ices to the Social Security Administration, for appropriate

24 allocation by the Social Security Board in the Social Secu25 rity Administration—
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1 (A) the personnel (other than administrative

2 law judges) employed in connection with the func3 tions transferred by this Act and the amendments

4 made thereby, as considered appropriate by the

5 Board in consultation with the Secretary of Health

6 and Human Services,

7 (B) such number of administrative law judges

8 as are necessary to carry out the functions trans9 ferred by this Act and the amendments made there10 by, as determined by the Board in consultation with

11 the Secretary of Health and Human Services, and

12 (C) the assets, liabilities, contracts, property,

13 records, and unexpended balance of appropriations,

14 authorizations, allocations, and other funds em15 ployed, held, or used in connection with such func16 tions, arising from such functions, or available, or to

17 be made available, in connection with such functions.

18 (2) Unexpended funds transferred pursuant to this

19 subsection shall be used only for the purposes for which

20 the funds were originally authorized and appropriated.

21 (3) The Secretary of Health and Human Services

22 shall terminate—

23 (A) six positions in the Department of Health

24 and Human Services placed in level IV of the Execu25 tive Schedule (or equivalent positions) other than po-
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1 sitions specifically required under section 5315 of

2 title 5, United States Code, or any other provision

3 of law, and

4 (B) six positions in such Department placed in

5 level V of the Executive Schedule (or equivalent po6 sitions) other than positions specifically required

7 under section 5316 of such title or any other provi8 sion of law.

9 (4) The transfer pursuant to this section of full-time

10 personnel (except special Government employees) and

11 part-time personnel holding permanent positions shall not

12 cause any such employees to be separated or reduced in

13 grade or compensation for 1 year after such transfer or

14 October 1, 1995, whichever is later.

15 (c) ABOLISHMENT OF OFFICE OF COMMISSIONER IN

16 THE DEPARTMENT OF HEALTH AND HUMAN SERV17 ICES.—Effective upon the entry upon office of all initial

18 members of the Social Security Board pursuant to section

19 702 of the Social Security Act (as amended by this Act),

20 the position of Commissioner of Social Security in the De21 partment of Health and Human Services is abolished.

22 SEC. 105. TRANSITIONAL RULES.

23 (a) INTERIM AUTHORITY FOR APPOINTMENT AND

24 COMPENSATION.—At any time on or after the date of the

25 enactment of this Act—
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1 (1) any of the officers provided for in section

2 702 of the Social Security Act (as amended by this

3 Act) may enter upon office, as provided in such sec4 tion, and

5 (2) the Social Security Board, upon entry upon

6 office of all of the members thereof, may prescribe

7 regulations providing for the orderly transfer of pro8 ceedings before the Secretary of Health and Human

9 Services to the Social Security Board.

10 Funds available to any official or component of the De11 partment of Health and Human Services, functions of

12 which are transferred to the Social Security Board or the

13 Social Security Administration by this Act, may be used,

14 with the approval of the Director of the Office of Manage15 ment and Budget, to pay the compensation and expenses

16 of any officer entering upon office pursuant to this section

17 until such time as funds for that purpose are otherwise

18 available.

19 (b) CONTINUATION OF ORDERS, DETERMINATIONS,

20 RULES, REGULATIONS, ETC.—All orders, determinations,

21 rules, regulations, permits, contracts, collective bargaining

22 agreements, recognitions of labor organizations, certifi23 cates, licenses, and privileges—

24 (1) which have been issued, made, promulgated,

25 granted, or allowed to become effective, in the exer-
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1 cise of functions (A) which were exercised by the

2 Secretary of Health and Human Services (or his del3 egate), and (B) which relate to functions which, by

4 reason of this Act, the amendments made thereby,

5 and regulations prescribed thereunder, are vested in

6 the Social Security Board, and

7 (2) which are in effect immediately before Octo8 ber 1, 1995,

9 shall (to the extent that they relate to functions described

10 in paragraph (1)(B)) continue in effect according to their

11 terms until modified, terminated, suspended, set aside, or

12 repealed, in accordance with law, by such Board.

13 (c) CONTINUATION OF PROCEEDINGS.—The provi14 sions of this Act (including the amendments made there15 by) shall not affect any proceeding pending before the Sec16 retary of Health and Human Services immediately before

17 October 1, 1995, with respect to functions vested (by rea18 son of this Act, the amendments made thereby, and regu19 lations prescribed thereunder) in the Social Security

20 Board, except that such proceedings, to the extent that

21 they relate to such functions, shall continue before such

22 Board. Orders shall be issued under any such proceeding,

23 appeals taken therefrom, and payments shall be made pur24 suant to such orders, in like manner as if this Act had

25 not been enacted, and orders issued in any such proceed-
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1 ing shall continue in effect until modified, terminated, su2 perseded, or repealed by such Board, by a court of com3 petent jurisdiction, or by operation of law.

4 (d) CONTINUATION OF SUITS.—Except as provided

5 in this subsection—

6 (1) the provisions of this Act shall not affect

7 suits commenced prior to October 1, 1995; and

8 (2) in all such suits proceedings shall be had,

9 appeals taken, and judgments rendered, in the same

10 manner and effect as if this Act had not been en11 acted. No cause of action, and no suit, action, or

12 other proceeding commenced by or against any offi13 cer in his official capacity as an officer of the De14 partment of Health and Human Services, shall abate

15 by reason of the enactment of this Act. Causes of

16 action, suits, actions, or other proceedings may be

17 asserted by or against the United States and the So18 cial Security Administration, or such official of such

19 Administration as may be appropriate, and, in any

20 litigation pending immediately before October 1,

21 1995, the court may at any time, on its own motion

22 or that of a party, enter an order which will give ef23 fect to the provisions of this subsection (including,

24 where appropriate, an order for substitution of par25 ties).
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1 (e) CONTINUATION OF PENALTIES.—This Act shall

2 not have the effect of releasing or extinguishing any crimi3 nal prosecution, penalty, forfeiture, or liability incurred as

4 a result of any function which (by reason of this Act),

5 the amendments made thereby, and regulations prescribed

6 thereunder) is vested in the Social Security Board.

7 (f) JUDICIAL REVIEW.—Orders and actions of the

8 Social Security Board in the exercise of functions vested

9 in such Board under this Act (and the amendments made

10 thereby) shall be subject to judicial review to the same

11 extent and in the same manner as if such orders had been

12 made and such actions had been taken by the Secretary

13 of Health and Human Services in the exercise of such

14 functions immediately before October 1, 1995. Any statu15 tory requirements relating to notice, hearings, action upon

16 the record, or administrative review that apply to any

17 function so vested in such Board shall continue to apply

18 to the exercise of such function by such Board.

19 (g) EXERCISE OF FUNCTIONS.—In the exercise of the

20 functions vested in the Social Security Board under this

21 Act, the amendments made thereby, and regulations pre22 scribed thereunder, such Board shall have the same au23 thority as that vested in the Secretary of Health and

24 Human Services with respect to the exercise of such func25 tions immediately preceding the vesting of such functions
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1 in such Board, and actions of such Board shall have the

2 same force and effect as when exercised by such Secretary.

3 (h) OPERATION OF TRANSITIONAL RULES IN THE

4 EVENT OF INTERIM AUTHORITY IN THE COMMIS5 SIONER.—For purposes of this section, in any case in

6 which the powers and duties to be transferred to the Social

7 Security Board are transferred to the Commissioner of So8 cial Security (or acting Commissioner) in the Department

9 of Health and Human Services for an interim period pur10 suant to section 102(c), the preceding provisions of this

11 section shall apply with respect to the transfer of such

12 powers and duties to and from such Commissioner (or act13 ing Commissioner) pursuant to section 102(c) in the same

14 manner and to the same extent as they would have applied

15 to a direct transfer from the Secretary of Health and

16 Human Services to the Social Security Board if all mem17 bers of the Board had entered upon office.

18 SEC. 106. CONFORMING AMENDMENTS TO TITLES II AND

19 XVI OF THE SOCIAL SECURITY ACT.

20 (a) IN GENERAL.—Title II of the Social Security Act

21 (other than section 201, section 218(d), section 226, sec22 tion 226A, and section 231(c)) and title XVI of such Act

23 are each amended—
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1 (1) by striking, wherever it appears therein,

2 ‘‘Secretary of Health and Human Services’’ and in3 serting ‘‘Social Security Board’’;

4 (2) by striking, wherever it appears therein,

5 ‘‘Department of Health and Human Services’’ and

6 inserting ‘‘Social Security Administration’’;

7 (3) by striking, wherever it appears therein,

8 ‘‘Department’’ (but only if it is not immediately suc9 ceeded by the words ‘‘of Health and Human Serv10 ices’’, and only if it is used in reference to the De11 partment of Health and Human Services) and in12 serting ‘‘Administration’’;

13 (4) by striking, wherever it appears therein,

14 each of the following words (but, in the case of any

15 such word only if such word refers to the Secretary

16 of Health and Human Services): ‘‘Secretary’’, ‘‘Sec17 retary’s’’, ‘‘his’’, ‘‘him’’, and ‘‘he’’, and inserting (in

18 the case of the word ‘‘Secretary’’) ‘‘Social Security

19 Board’’, (in the case of the word ‘‘Secretary’s’’)

20 ‘‘Board’s’’, (in the case of the word ‘‘his’’) ‘‘the

21 Board’s’’, (in the case of the word ‘‘him’’) ‘‘the

22 Board’’, and (in the case of the word ‘‘he’’) ‘‘the

23 Board’’; and
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1 (5) by striking, wherever it appears therein,

2 ‘‘Internal Revenue Code of 1954’’ and inserting ‘‘In3 ternal Revenue Code of 1986’’.

4 (b) AMENDMENTS TO SECTION 218.—Section 218(d)

5 of such Act (42 U.S.C. 418(d)) is amended by striking

6 ‘‘Secretary’’ each place it appears in paragraphs (3) and

7 (7) and inserting ‘‘Social Security Board’’.

8 (c) AMENDMENTS TO SECTION 222.—Section 222(d)

9 of such Act (42 U.S.C. 422(d)) is amended—

10 (1) in the last sentence of paragraph (1), by

11 striking ‘‘Commissioner of Social Security’’ and in12 serting ‘‘Executive Director of the Social Security

13 Administration’’; and

14 (2) in the first sentence of paragraph (2), by

15 striking ‘‘Commissioner of Social Security’’ and in16 serting ‘‘Executive Director of the Social Security

17 Administration’’.

18 (d) AMENDMENT TO SECTION 231.—Section 231(c)

19 of such Act (42 U.S.C. 431(c)) is amended by striking

20 ‘‘Secretary determines’’ and inserting ‘‘Social Security

21 Board and the Secretary jointly determine’’.

22 (e) AMENDMENT TO SECTION 1615.—Section

23 1615(d) of such Act (422 U.S.C. 1832d(d)) is amended

24 by striking ‘‘Commissioner of Social Security’’ and insert-
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1 ing ‘‘Executive Director of the Social Security Administra2 tion’’.

3 SEC. 107. OTHER CONFORMING AMENDMENTS.

4 Title VII of the Social Security Act is amended—

5 (1) by striking section 704 (42 U.S.C. 904) and

6 inserting the following new section:

7 ‘‘REPORTS

8 ‘‘SEC. 704. The Secretary and the Social Security

9 Board shall make full reports to Congress, within 120

10 days after the beginning of each regular session, of the

11 administration of the functions with which they are

12 charged under this Act. In addition to the number of cop13 ies of such reports authorized by other law to be printed,

14 there is hereby authorized to be printed not more than

15 5,000 copies of each such report for use by the Secretary

16 and Social Security Board for distribution to Members of

17 Congress and to State and other public or private agencies

18 or organizations participating in or concerned with the

19 programs provided for in this Act.’’;

20 (2) in section 709(b)(2) (42 U.S.C. 910(b)(2)),

21 by striking ‘‘(as estimated by the Secretary)’’ and

22 inserting ‘‘, as estimated by the Social Security

23 Board or the Secretary (whichever administers the

24 program involved),’’; and

25 (3) by adding at the end thereof the following

26 new section:
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1 ‘‘DUTIES AND AUTHORITY OF SECRETARY

2 ‘‘SEC. 712. (a) The Secretary shall perform the du3 ties imposed upon him by this Act and shall also have the

4 duty of studying and making recommendations as to the

5 most effective methods of providing economic security and

6 as to legislation and matters of administrative policy con7 cerning the programs administered by the Secretary and

8 related subjects; except that nothing in this section shall

9 be construed to require the Secretary to make studies or

10 recommendations with respect to programs administered

11 by the Social Security Administration.

12 ‘‘(b) The Secretary is authorized to appoint and fix

13 the compensation of such officers and employees, and to

14 make such expenditures, as may be necessary for carrying

15 out the Secretary’s functions under this Act. Appoint16 ments of attorneys and experts may be made without re17 gard to the civil service laws.’’.

18 SEC. 108. RULES OF CONSTRUCTION.

19 (a) REFERENCES TO THE DEPARTMENT OF HEALTH

20 AND HUMAN SERVICES.—Whenever any reference is made

21 in any provision of law (other than this Act or a provision

22 of law amended by this Act), regulation, rule, record, court

23 order, or other document to the Department of Health and

24 Human Services with respect to such Department’s func25 tions under the old-age, survivors, and disability insurance
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1 program under title II of the Social Security Act or the

2 supplemental security income program under title XVI of

3 such Act, such reference shall be considered a reference

4 to the Social Security Administration.

5 (b) REFERENCES TO THE SECRETARY OF HEALTH

6 AND HUMAN SERVICES.—Whenever any reference is made

7 in any provision of law (other than this Act or a provision

8 of law amended by this Act), regulation, rule, record, court

9 order, or other document to the Secretary of Health and

10 Human Services with respect to such Secretary’s functions

11 under such programs, such reference shall be considered

12 a reference to the Social Security Board.

13 (c) REFERENCES TO OTHER OFFICERS AND EM14 PLOYEES.—Whenever any reference is made in any provi15 sion of law (other than this Act or a provision of law

16 amended by this Act), regulation, rule, record, or docu17 ment to any other officer or employee of the Department

18 of Health and Human Services with respect to such offi19 cer’s or employee’s functions under such programs, such

20 reference shall be considered a reference to the appro21 priate officer or employee of the Social Security Adminis22 tration.
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1 SEC. 109. EFFECTIVE DATES.

2 (a) IN GENERAL.—Sections 101, 102(a), 103, 104,

3 106, 107, and 108 of this Act (and the amendments made

4 thereby) shall take effect October 1, 1995.

5 (b) EXCEPTIONS.—Section 102(b) of this Act shall

6 take effect upon the entry upon office of all initial mem7 bers of the Social Security Board. Sections 102(c) and

8 105 of this Act shall take effect on the date of the enact9 ment of this Act.

10 (c) NEW SPENDING AUTHORITY.—Any new spending

11 authority provided by this title shall be effective for any

12 fiscal year only to such extent or in such amounts as are

13 provided in advance in appropriation Acts.

14 TITLE II—IMPROVEMENTS TO

15 THE OLD-AGE, SURVIVORS,

16 AND DISABILITY INSURANCE

17 PROGRAM

18 SEC. 201. RESTRICTIONS ON PAYMENT OF BENEFITS BASED

19 ON DISABILITY TO SUBSTANCE ABUSERS.

20 (a) AMENDMENTS RELATING TO BENEFITS BASED

21 ON DISABILITY UNDER TITLE II OF THE SOCIAL SECU22 RITY ACT.—

23 (1) REQUIRED PAYMENT OF BENEFITS TO REP24 RESENTATIVE PAYEES.—
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•HR 4277 EH

1 (A) IN GENERAL.—Section 205(j)(1) of

2 the Social Security Act (42 U.S.C. 405(j)(1)) is

3 amended—

4 (i) by inserting after the first sentence

5 the following new sentence: ‘‘In the case of

6 an individual entitled to benefits based on

7 disability, if alcoholism or drug addiction is

8 a contributing factor material to the Sec9 retary’s determination that the individual

10 is under a disability, certification of pay11 ment of such benefits to a representative

12 payee shall be deemed to serve the interest

13 of such individual under this title.’’; and

14 (ii) in the last sentence, by inserting

15 ‘‘, if the interest of the individual under

16 this title would be served thereby,’’ after

17 ‘‘alternative representative payee or’’.

18 (B) EFFECTIVE DATE.—The amendments

19 made by subparagraph (A) shall apply with re20 spect to benefits for months beginning after

21 180 days after the date of the enactment of this

22 Act.

23 (C) STUDY REGARDING FEASIBILITY,

24 COST, AND EQUITY OF REQUIRING REPRESENT25 ATIVE PAYEES FOR ALL DISABILITY BENE-
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•HR 4277 EH

1 FICIARIES SUFFERING FROM ALCOHOLISM OR

2 DRUG ADDICTION.—

3 (i) STUDY.—As soon as practicable

4 after the date of the enactment of this Act,

5 the Secretary of Health and Human Serv6 ices shall conduct a study of the represent7 ative payee program. In such study, the

8 Secretary shall examine—

9 (I) the feasibility, cost, and eq10 uity of requiring representative payees

11 for all individuals entitled to benefits

12 based on disability under title II or

13 XVI of the Social Security Act who

14 suffer from alcoholism or drug addic15 tion, irrespective of whether the alco16 holism or drug addiction was material

17 in any case to the Secretary’s deter18 mination of disability,

19 (II) the feasibility of and appro20 priate timetable for providing benefits

21 through non-cash means, including

22 (but not limited to) vouchers, debit

23 cards, and electronic benefits transfer

24 systems,
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1 (III) the extent to which child

2 beneficiaries are afflicted by drug ad3 dition or alcoholism and ways of ad4 dressing such affliction, including the

5 feasibility of requiring treatment, and

6 (IV) the extent to which chil7 dren’s representative payees are af8 flicted by drug addiction or alcohol9 ism, and methods to identify chil10 dren’s representative payees afflicted

11 by drug addition or alcoholism and to

12 ensure that benefits continue to be

13 provided to beneficiaries appro14 priately.

15 (ii) REPORT.—Not later than April 1,

16 1995, the Secretary shall transmit to the

17 Committee on Ways and Means of the

18 House of Representatives and the Commit19 tee on Finance of the Senate a report set20 ting forth the findings of the Secretary

21 based on such Study. Such report shall in22 clude such recommendations for adminis23 trative or legislative changes as the Sec24 retary considers appropriate.
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1 (2) INCREASED RELIANCE ON PROFESSIONAL

2 REPRESENTATIVE PAYEES.—

3 (A) PREFERENCE REQUIRED FOR ORGANI4 ZATIONAL REPRESENTATIVE PAYEES.—Section

5 205(j)(2)(C) of such Act (42 U.S.C.

6 405(j)(2)(C)) is amended by adding at the end

7 the following new clause:

8 ‘‘(v) In the case of an individual entitled to benefits

9 based on disability, if alcoholism or drug addiction is a

10 contributing factor material to the Secretary’s determina11 tion that the individual is under a disability, when select12 ing such individual’s representative payee, preference shall

13 be given to—

14 ‘‘(I) a community-based nonprofit social service

15 agency licensed or bonded by the State,

16 ‘‘(II) a State or local government agency whose

17 mission is to carry out income maintenance, social

18 service, or health care-related activities, or

19 ‘‘(III) a State or local government agency with

20 fiduciary responsibilities,

21 (or a designee of such an agency if the Secretary deems

22 it appropriate), unless the Secretary determines that selec23 tion of such an agency would not be appropriate.’’.

24 (B) AVAILABILITY OF PUBLIC AGENCIES

25 AND OTHER QUALIFIED ORGANIZATIONS TO
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1 SERVE AS REPRESENTATIVE PAYEES.—Section

2 205(j)(4) of such Act (42 U.S.C. 405(j)(4)) is

3 amended—

4 (i) in subparagraph (A)—

5 (I) by striking ‘‘exceed the lesser

6 of—’’ and inserting ‘‘exceed—’’; and

7 (II) by striking clauses (i) and

8 (ii) and inserting the following:

9 ‘‘(i) in any case in which an individual

10 is entitled to benefits based on disability

11 and alcoholism or drug addiction is a con12 tributing factor material to the Secretary’s

13 determination that the individual is under

14 a disability, 10 percent of the monthly ben15 efit involved, or

16 ‘‘(ii) in any other case, the lesser of—

17 ‘‘(I) 10 percent of the monthly

18 benefit involved, or

19 ‘‘(II) $25.00 per month.’’;

20 (ii) in subparagraph (B)—

21 (I) by inserting ‘‘State or local

22 government agency whose mission is

23 to carry out income maintenance, so24 cial service, or health care-related ac25 tivities, any State or local government
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•HR 4277 EH

1 agency with fiduciary responsibilities,

2 or any’’ after ‘‘means any’’;

3 (II) by striking ‘‘representative

4 payee and which,’’ and inserting ‘‘rep5 resentative payee, if such agency,’’;

6 (III) by striking ‘‘, and’’ at the

7 end of clause (ii) and inserting a pe8 riod; and

9 (IV) by striking clause (iii); and

10 (iii) by striking subparagraph (D), ef11 fective July 1, 1994.

12 (C) DEFINITION.—Section 205(j) of such

13 Act (42 U.S.C. 405(j)) is amended by adding at

14 the end the following new paragraph:

15 ‘‘(7) For purposes of this subsection, the term ‘bene16 fit based on disability’ of an individual means a disability

17 insurance benefit of such individual under section 223 or

18 a child’s, widow’s, or widower’s insurance benefit of such

19 individual under section 202 based on such individual’s

20 disability.’’.

21 (3) NONPAYMENT OR TERMINATION OF BENE22 FITS.—

23 (A) IN GENERAL.—Section 225 of such

24 Act (42 U.S.C. 425) is amended—
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1 (i) by striking the heading and insert2 ing the following:

3 ‘‘ADDITIONAL RULES RELATING TO BENEFITS BASED ON

4 DISABILITY

5 ‘‘Suspension of Benefits’’;

6 (ii) by inserting before subsection (b)

7 the following new heading:

8 ‘‘Continued Payments During Rehabilitation Program’’;

9 and

10 (iii) by adding at the end the follow11 ing new subsection:

12 ‘‘Nonpayment or Termination of Benefits Where

13 Entitlement Involves Alcoholism or Drug Addiction

14 ‘‘(c)(1)(A) Notwithstanding any other provision of

15 this title, in the case of any individual entitled to benefits

16 based on disability, if alcoholism or drug addiction is a

17 contributing factor material to the Secretary’s determina18 tion that such individual is under a disability and such

19 individual is determined by the Secretary not to be in com20 pliance with the requirements of this subsection for a

21 month, such benefits shall be suspended for a period com22 mencing with such month and ending with the month pre23 ceding the first month, after the determination of non24 compliance, in which such individual demonstrates that he

25 or she has reestablished and maintained compliance with
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1 such requirements for the applicable period specified in

2 paragraph (3).

3 ‘‘(B) For purposes of this subsection, in the case of

4 an individual who is entitled to benefits based on disability

5 for the first month ending after 180 days after the date

6 of the enactment of the Social Security Administrative Re7 form Act of 1994, if such individual has a primary diag8 nosis of alcoholism or drug addiction, such alcoholism or

9 drug addiction shall be treated as a contributing factor

10 material to the Secretary’s determination of disability.

11 ‘‘(2)(A) An individual described in paragraph (1) is

12 in compliance with the requirements of this subsection for

13 a month if such individual in such month undergoes any

14 medical or psychological treatment that may be appro15 priate, for such individual’s condition diagnosed as sub16 stance abuse or alcohol abuse and for the stage of such

17 individual’s rehabilitation, at an institution or facility ap18 proved for purposes of this subsection by the Secretary,

19 and complies in such month with the terms, conditions,

20 and requirements of such treatment and with require21 ments imposed by the Secretary under paragraph (6).

22 ‘‘(B) An individual described in paragraph (1) shall

23 not be determined to be not in compliance with the re24 quirements of this subsection for a month if access by such

25 individual to such treatment is not reasonably available
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1 for that month, as determined under regulations of the

2 Secretary.

3 ‘‘(3) The applicable period specified in this paragraph

4 is—

5 ‘‘(A) 2 consecutive months, in the case of a

6 first determination that an individual is not in com7 pliance with the requirements of this subsection,

8 ‘‘(B) 3 consecutive months, in the case of the

9 second such determination with respect to the indi10 vidual, and

11 ‘‘(C) 6 consecutive months, in the case of the

12 third or subsequent such determination with respect

13 to the individual.

14 ‘‘(4) In any case in which an individual’s benefit is

15 suspended for a period of 12 consecutive months for fail16 ure to comply with treatment described in paragraph (2)

17 of this subsection, the month following such period shall

18 be deemed, for purposes of section 223(a)(1) or subsection

19 (d)(1)(G)(i), (e)(1), or (f)(1) of section 202 (as applica20 ble), as the termination month with respect to such entitle21 ment.

22 ‘‘(5)(A) Subject to subparagraph (B), monthly insur23 ance benefits under this title which would be payable to

24 any individual (other than the disabled individual to whom

25 benefits are not payable by reason of this subsection) on
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1 the basis of the wages and self-employment income of such

2 disabled individual but for the provisions of paragraph (1)

3 or (4), shall be payable as though such disabled individual

4 were receiving such benefits which are not payable under

5 this subsection (and, in the case of a disabled individual

6 whose entitlement is terminated under paragraph (4), as

7 though such disabled individual’s entitlement were not ter8 minated).

9 ‘‘(B) If the monthly insurance benefits of a disabled

10 individual referred to in subparagraph (A) are not payable

11 by reason of termination of entitlement under paragraph

12 (4), monthly insurance benefits which are payable to any

13 other individual on the basis of the wages and self-employ14 ment income of such disabled individual pursuant to sub15 paragraph (A) shall not be payable for any month after

16 2 years after the last month of such entitlement.

17 ‘‘(6)(A) The Secretary shall provide for the monitor18 ing and testing of all individuals who are receiving benefits

19 under this title and who as a condition of payment of such

20 benefits are required to be undergoing treatment and com21 plying with the terms, conditions, and requirements there22 of as described in paragraph (2)(A), in order to assure

23 such compliance and to determine the extent to which the

24 imposition of such requirements is contributing to the

25 achievement of the purposes of this title. The Secretary
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1 shall annually submit to the Congress a full and complete

2 report on the Secretary’s activities under this paragraph.

3 Each such annual report shall include the number and

4 percentage of such individuals who did not receive regular

5 drug testing during the year covered by the report.

6 ‘‘(B) The Secretary, in consultation with drug and

7 alcohol treatment professionals, shall issue regulations—

8 ‘‘(i) defining appropriate treatment for alcohol9 ics and drug addicts who are subject to required

10 medical or psychological treatment under this sub11 section, and

12 ‘‘(ii) establishing guidelines to be used to review

13 and evaluate their compliance, including measures of

14 the progress of participants in such programs.

15 ‘‘(C)(i) For purposes of carrying out the require16 ments of subparagraphs (A) and (B), the Secretary shall

17 establish in each State a referral and monitoring agency

18 for such State.

19 ‘‘(ii) Each referral and monitoring agency for a State

20 shall—

21 ‘‘(I) identify appropriate placements, for indi22 viduals residing in such State who are entitled to

23 benefits based on disability and with respect to

24 whom alcoholism or drug addiction is a contributing

25 factor material to the Secretary’s determination that
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1 they are under a disability, where they may obtain

2 treatment described in paragraph (2)(A),

3 ‘‘(II) refer such individuals to such placements

4 for such treatment, and

5 ‘‘(III) monitor compliance with the require6 ments of paragraph (2)(A) by individuals who are

7 referred by the agency to such placements and

8 promptly report failures to comply to the Secretary.

9 ‘‘(7) In the case of any individual who is entitled to

10 a benefit based on disability for any month, if alcoholism

11 or drug addiction is a contributing factor material to the

12 Secretary’s determination that the individual is under a

13 disability, payment of any past-due monthly insurance

14 benefits under this title to which such individual is entitled

15 shall be made in any month only to the extent that the

16 sum of—

17 ‘‘(A) the amount of such past-due benefit paid

18 in such month, and

19 ‘‘(B) the amount of any benefit for the preced20 ing month under such current entitlement which is

21 payable in such month,

22 does not exceed 200 percent of the amount of such benefit

23 for the preceding month.

24 ‘‘(8) In the case of any individual entitled to benefits

25 based on disability, if alcoholism or drug addiction is a
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1 contributing factor material to the Secretary’s determina2 tion that such individual is under a disability, the month

3 following the 36-month period beginning with such indi4 vidual’s first month of entitlement shall be deemed, for

5 purposes of section 223(a)(1) or subsection (d)(1)(G)(i),

6 (e)(1), or (f)(1) of section 202 (as applicable), as the ter7 mination month with respect to such entitlement, and such

8 individual shall be deemed not to be entitled to any past9 due benefits under such entitlement remaining unpaid as

10 of the end of such 36-month period. Such individual may

11 not be entitled to benefits based on disability for any

12 month after such 36-month period if, with respect to such

13 entitlement, alcoholism or drug addition is a contributing

14 factor material to the Secretary’s determination that such

15 individual is under a disability.

16 ‘‘(9) For purposes of this subsection, the term ‘bene17 fit based on disability’ of an individual means a disability

18 insurance benefit of such individual under section 223 or

19 a child’s, widow’s, or widower’s insurance benefit of such

20 individual under section 202 based on the disability of

21 such individual.’’.

22 (B) PRESERVATION OF MEDICARE BENE23 FITS.—Section 226 of such Act (42 U.S.C.

24 426) is amended by adding at the end the fol25 lowing:
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1 ‘‘(i) For purposes of this section, each person whose

2 benefit for any month is not payable by reason of para3 graph (1) of section 225(c) (and is not terminated by rea4 son of paragraph (4) or (8) of section 225(c)) shall be

5 treated as entitled to such benefit for such month if such

6 person would be entitled to such benefit for such month

7 in the absence of such section.’’.paragraph (other than

8 paragraphs (6)(C) and (8) of section 225(c) of the Social

9 Security Act added by this paragraph) shall apply with

10 respect to benefits based on disability (as defined in sec11 tion 225(c)(9) of the Social Security Act, added by this

12 section) of individuals becoming entitled to such benefits

13 for months beginning after 180 days after the date of the

14 enactment of this Act. Section 225(c)(6)(C) of the Social

15 Security Act shall take effect 180 days after the date of

16 the enactment of this Act. Section 225(c)(8) of the Social

17 Security Act (added by this section) shall apply with re18 spect to benefits for months ending after 180 days after

19 the date of the enactment of this Act, and, for purposes

20 of such section 225(c)(8), in the case of any individual

21 entitled to benefits based on disability (as so defined) for

22 the first month ending after 180 days after the date of

23 the enactment of this Act, such month shall be treated

24 as such individual’s first month of entitlement to such

25 benefits.
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1 (4) IRRELEVANCE OF LEGALITY OF SERVICES

2 PERFORMED IN DETERMINING SUBSTANTIAL GAIN3 FUL ACTIVITY.—

4 (A) IN GENERAL.—Section 223(d)(4) of

5 such Act (42 U.S.C. 423(d)(4)) is amended—

6 (i) by inserting ‘‘(A)’’ after ‘‘(4)’’; and

7 (ii) by adding at the end the following

8 new subparagraph:

9 ‘‘(B) In determining under subparagraph (A) when

10 services performed or earnings derived from services dem11 onstrate an individual’s ability to engage in substantial

12 gainful activity, the Secretary apply the criteria described

13 in subparagraph (A) with respect to services performed

14 by any individual without regard to the legality of such

15 services.’’.

16 (B) EFFECTIVE DATE.—The amendments

17 made by this paragraph shall take effect on the

18 date of the enactment of this Act.

19 (b) AMENDMENTS RELATING TO SUPPLEMENTAL SE20 CURITY INCOME BENEFITS UNDER TITLE XVI OF THE

21 SOCIAL SECURITY ACT.—

22 (1) REQUIRED PAYMENT OF BENEFITS TO REP23 RESENTATIVE PAYEES.—
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1 (A) IN GENERAL.—Section 1631(a)(2)(A)

2 of the Social Security Act (42 U.S.C.

3 1383(a)(2)(A)) is amended—

4 (i) in clause (ii), by adding at the end

5 the following: ‘‘In the case of an individual

6 entitled to benefits under this title by rea7 son of disability, if alcoholism or drug ad8 diction is a contributing factor material to

9 the Secretary’s determination that the in10 dividual is disabled, the payment of such

11 benefits to a representative payee shall be

12 deemed to serve the interest of such indi13 vidual under this title.’’; and

14 (ii) in clause (iii), by striking ‘‘to the

15 individual or eligible spouse or to an alter16 native representative payee of the individ17 ual or eligible spouse’’ and inserting ‘‘to an

18 alternative representative payee of the indi19 vidual or eligible spouse or, if the interest

20 of the individual under this title would be

21 served thereby, to the individual or eligible

22 spouse’’.

23 (B) CONFORMING AMENDMENT.—Section

24 1631(a)(2)(B)(viii)(II) of such Act (42 U.S.C.

25 1383(a)(2)(B)(viii)(II)) is amended by striking
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1 ‘‘15 years’’ and all that follows and inserting

2 ‘‘of 15 years, or (if alcoholism or drug addiction

3 is a contributing factor material to the Sec4 retary’s determination that the individual is dis5 abled) is entitled to benefits under this title by

6 reason of disability.’’.

7 (C) EFFECTIVE DATE.—The amendments

8 made by subparagraphs (A) and (B) shall apply

9 with respect to benefits for months beginning

10 after 180 days after the date of the enactment

11 of this Act.

12 (2) INCREASED RELIANCE ON PROFESSIONAL

13 REPRESENTATIVE PAYEES.—

14 (A) PREFERENCE REQUIRED FOR ORGANI15 ZATIONAL REPRESENTATIVE PAYEES.—Section

16 1631(a)(2)(B) of such Act (42 U.S.C.

17 1383(a)(2)(B)) is amended—

18 (i) by redesignating clauses (vii)

19 through (xii) as clauses (viii) through

20 (xiii), respectively;

21 (ii) by inserting after clause (vi) the

22 following:

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

24 under this title by reason of disability, if alcoholism or

25 drug addiction is a contributing factor material to the Sec-
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1 retary’s determination that the individual is disabled,

2 when selecting such individual’s representative payee,

3 preference shall be given to—

4 ‘‘(I) a community-based nonprofit social service

5 agency licensed or bonded by the State;

6 ‘‘(II) a State or local government agency whose

7 mission is to carry out income maintenance, social

8 service, or health care-related activities; or

9 ‘‘(III) a State or local government agency with

10 fiduciary responsibilities,

11 (or a designee of such an agency if the Secretary deems

12 it appropriate), unless the Secretary determines that selec13 tion of such an agency would not be appropriate.’’;

14 (iii) in clause (viii) (as so redesig15 nated), by striking ‘‘clause (viii)’’ and in16 serting ‘‘clause (ix)’’;

17 (iv) in clause (ix) (as so redesignated),

18 by striking ‘‘(vii)’’ and inserting ‘‘(viii)’’;

19 (v) in clause (xiii) (as so redesig20 nated)—

21 (I) by striking ‘‘(xi)’’ and insert22 ing ‘‘(xii)’’; and

23 (II) by striking ‘‘(x)’’ and insert24 ing ‘‘(xi)’’.
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1 (B) AVAILABILITY OF PUBLIC AGENCIES

2 AND OTHER QUALIFIED ORGANIZATIONS TO

3 SERVE AS REPRESENTATIVE PAYEES.—Section

4 1631(a)(2)(D) of such Act (42 U.S.C.

5 1383(a)(2)(D)) is amended—

6 (i) in clause (i)—

7 (I) by striking ‘‘exceed the lesser

8 of—’’ and inserting ‘‘exceed—’’; and

9 (II) by striking subclauses (I)

10 and (II) and inserting the following:

11 ‘‘(I) in any case in which an individual is enti12 tled to benefits under this title by reason of disabil13 ity and alcoholism or drug addiction is a contribut14 ing factor material to the Secretary’s determination

15 that the individual is disabled, 10 percent of the

16 monthly benefit involved, or

17 ‘‘(II) in any other case, the lesser of—

18 ‘‘(aa) 10 percent of the monthly benefit in19 volved, or

20 ‘‘(bb) $25.00 per month.’’;

21 (ii) in clause (ii)—

22 (I) by inserting ‘‘State or local

23 government agency whose mission is

24 to carry out income maintenance, so25 cial service, or health care-related ac-
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1 tivities, any State or local government

2 agency with fiduciary responsibilities,

3 or any’’ after ‘‘means any’’;

4 (II) by inserting a comma after

5 ‘‘service agency’’;

6 (III) by adding ‘‘and’’ at the end

7 of subclause (I); and

8 (IV) in subclause (II)—

9 (aa) by adding ‘‘and’’ at the

10 end of item (aa);

11 (bb) by striking ‘‘; and’’ at

12 the end of item (bb) and insert13 ing a period; and

14 (cc) by striking item (cc);

15 and

16 (iii) by striking clause (iv), effective

17 July 1, 1994.

18 (3) NONPAYMENT OR TERMINATION OF BENE19 FITS.—

20 (A) IN GENERAL.—Section 1611(e)(3) of

21 such Act (42 U.S.C. 1382(e)(3)), is amended

22 by redesignating subparagraph (B) as subpara23 graph (C) and by inserting after subparagraph

24 (A) the following:
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1 ‘‘(B)(i) Notwithstanding any other provision of this

2 title, in the case of any individual entitled to benefits

3 under this title solely by reason of disability, if alcoholism

4 or drug addiction is a contributing factor material to the

5 Secretary’s determination that such individual is disabled

6 and such individual is determined by the Secretary not

7 to be in compliance with the requirements of this subpara8 graph for a month, such benefits shall be suspended for

9 a period commencing with such month and ending with

10 the month preceding the first month, after the determina11 tion of noncompliance, in which such individual dem12 onstrates that he or she has reestablished and maintained

13 compliance with such requirements for the applicable pe14 riod specified in clause (iii).

15 ‘‘(ii)(I) An individual described in clause (i) is in com16 pliance with the requirements of this subparagraph for a

17 month if the individual in such month undergoes any med18 ical or psychological treatment that may be appropriate,

19 for the individual’s condition diagnosed as substance

20 abuse or alcohol abuse and for the stage of the individual’s

21 rehabilitation, at an institution or facility approved for

22 purposes of this subparagraph by the Secretary, and com23 plies in such month with the terms, conditions, and re24 quirements of such treatment and with requirements im25 posed by the Secretary under subparagraph (C).
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1 ‘‘(II) An individual described in clause (i) shall not

2 be determined to be not in compliance with the require3 ments of this subparagraph for a month if access by such

4 individual to such treatment is not reasonably available

5 for the month, as determined under regulations of the Sec6 retary.

7 ‘‘(iii) The applicable period specified in this clause

8 is—

9 ‘‘(I) 2 consecutive months, in the case of a 1st

10 determination that an individual is not in compliance

11 with the requirements of this subparagraph;

12 ‘‘(II) 3 consecutive months, in the case of the

13 2nd such determination with respect to the individ14 ual; or

15 ‘‘(III) 6 consecutive months, in the case of the

16 3rd or subsequent such determination with respect

17 to the individual.

18 ‘‘(iv) An individual shall not be an eligible individual

19 for purposes of this title for the 12-month period that be20 gins with the end of any period of 12 consecutive months

21 for which the benefits of the individual under this title

22 have been suspended by reason of this subparagraph.

23 ‘‘(v) In the case of any individual entitled to benefits

24 under this title by reason of disability, if alcoholism or

25 drug addiction is a contributing factor material to the Sec-
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1 retary’s determination that such individual is disabled,

2 such individual may not be entitled to such benefits by

3 reason of disability (or any past-due benefits under such

4 entitlement) for any month after the 36-month period be5 ginning with such individual’s first month of such entitle6 ment, notwithstanding section 1619(a).

7 ‘‘(vi)(I) The Secretary shall not, in a month, pay to

8 an individual described in clause (i) benefits under this

9 title the payment of which is past due, in an amount that

10 exceeds the amount of benefits under this title which are

11 payable to the individual for the month and the payment

12 of which is not past due.

13 ‘‘(II) As used in subclause (I) of this clause, the term

14 ‘benefits under this title’ includes supplementary pay15 ments of the type described in section 1616(a) and pay16 ments pursuant to an agreement entered into under sec17 tion 212(a) of Public Law 93–66.’’.

18 (B) REFERRAL, MONITORING, AND TREAT19 MENT.—Section 1611(e)(3)(C) of such Act (42

20 U.S.C. 1382(e)(3)(C)), as so designated by the

21 amendment made by subparagraph (A) of this

22 paragraph, is amended—

23 (i) by adding at the end the following:

24 ‘‘Each such annual report shall include the

25 number and percentage of such individuals
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1 who did not receive regular drug testing

2 during the year covered by the report.’’;

3 (ii) by inserting ‘‘(i)’’ after ‘‘(C)’’; and

4 (iii) by adding after and below the end

5 following:

6 ‘‘(ii) The Secretary, in consultation with drug and al7 cohol treatment professionals, shall issue regulations—

8 ‘‘(I) defining appropriate treatment for alcohol9 ics and drug addicts who are subject to required

10 medical or psychological treatment under this sub11 paragraph; and

12 ‘‘(II) establishing guidelines to be used to re13 view and evaluate their compliance, including meas14 ures of the progress of participants in such pro15 grams.

16 ‘‘(iii)(I) For purposes of carrying out the require17 ments of clauses (i) and (ii), the Secretary shall establish

18 in each State a referral and monitoring agency for the

19 State.

20 ‘‘(II) Each referral and monitoring agency for a State

21 shall—

22 ‘‘(aa) identify appropriate placements, for indi23 viduals residing in the State who are entitled to ben24 efits under this title by reason of disability and with

25 respect to whom alcoholism or drug addiction is a
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1 contributing factor material to the Secretary’s deter2 mination that they are disabled, where they may ob3 tain treatment described in subparagraph (B)(ii)(I);

4 ‘‘(bb) refer such individuals to such placements

5 for such treatment; and

6 ‘‘(cc) monitor compliance with the requirements

7 of subparagraph (B) by individuals who are referred

8 by the agency to such placements, and promptly re9 port to the Secretary any failure to comply with

10 such requirements.’’.

11 (C) PRESERVATION OF MEDICAID BENE12 FITS.—Section 1634 of such Act (42 U.S.C.

13 13283c) is amended by adding at the end the

14 following:

15 ‘‘(e) Each person to whom benefits under this title

16 by reason of disability are not payable for any month sole17 ly by reason of section 1611(e)(3)(B) shall be treated, for

18 purposes of title XIX, as receiving benefits under this title

19 for such month.’’.

20 (D) CONFORMING AMENDMENTS.—Section

21 1611(e)(3) of such Act (42 U.S.C. 1382(e)(3)),

22 as amended by subparagraphs (A) and (B) of

23 this paragraph, is amended—

24 (i) in subparagraph (A), by striking

25 ‘‘(B)’’ and inserting ‘‘(C)’’; and
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1 (ii) in subparagraph (C), by inserting

2 ‘‘or (B)’’ after ‘‘(A)’’.

3 (E) EFFECTIVE DATE.—

4 (i) IN GENERAL.—Except as provided

5 in clauses (ii) and (iii), the amendments

6 made by this paragraph shall apply with

7 respect to benefits for months beginning

8 after 180 days after the date of the enact9 ment of this Act.

10 (ii) TIME LIMITATION ON BENE11 FITS.—Section 1611(e)(3)(B)(v) of the So12 cial Security Act (as added by the amend13 ment made by subparagraph (A) of this

14 paragraph) shall apply with respect to ben15 efits for months ending after 180 days

16 after the date of the enactment of this Act,

17 and, for purposes of such section, in the

18 case of any individual entitled to benefits

19 by reason of disability for the first month

20 ending after 180 days after the date of the

21 enactment of this Act, such month shall be

22 treated as such individual’s first month of

23 entitlement to such benefits.

24 (iii) ESTABLISHMENT OF REFERRAL

25 AND MONITORING AGENCIES.—Section
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1 1611(e)(3)(C)(iii) of the Social Security

2 Act (as added by the amendment made by

3 subparagraph (B)(iii) of this paragraph)

4 shall take effect 180 days after the date of

5 the enactment of this Act.

6 (4) IRRELEVANCE OF LEGALITY OF SUBSTAN7 TIAL GAINFUL ACTIVITY.—

8 (A) IN GENERAL.—Section 1614(a)(3)(D)

9 of such Act (42 U.S.C. 1382c(a)(3)(D)) is

10 amended by adding at the end the following:

11 ‘‘The Secretary shall make determinations

12 under this title with respect to substantial gain13 ful activity, without regard to the legality of the

14 activity.’’.

15 (B) EFFECTIVE DATE.—The amendment

16 made by subparagraph (A) shall take effect on

17 the date of the enactment of this Act.

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

19 the preceding provisions of this section shall apply to bene20 fits payable for months beginning 180 or more days after

21 the date of the enactment of this Act.

22 (d) DEMONSTRATION PROJECTS.—

23 (1) IN GENERAL.—The Secretary of Health and

24 Human Services shall develop and carry out dem25 onstration projects designed to explore innovative re-
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1 ferral, monitoring, and treatment approaches with

2 respect to—

3 (A) individuals who are entitled to disabil4 ity insurance benefits or child’s, widow’s, or

5 widower’s insurance benefits based on disability

6 under title II of the Social Security Act, and

7 (B) individuals who are eligible for supple8 mental security income benefits under title XVI

9 of such Act based solely on disability,

10 in cases in which alcoholism or drug addiction is a

11 contributing factor material to the Secretary’s deter12 mination that individuals are under a disability.

13 (2) SCOPE.—The demonstration projects devel14 oped under paragraph (1) shall be of sufficient scope

15 and shall be carried out on a wide enough scale to

16 permit a thorough evaluation of the alternative ap17 proaches under consideration while giving assurance

18 that the results derived from the projects will obtain

19 generally in the operation of the programs involved

20 without committing such programs to the adoption

21 of any particular system either locally or nationally.

22 (3) FINAL REPORT.—The Secretary shall sub23 mit to the Committee on Ways and Means of the

24 House of Representatives and the Committee on Fi25 nance of the Senate no later than December 31,
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1 1997, a final report on the demonstration projects

2 carried out under this subsection, together with any

3 related data and materials which the Secretary may

4 consider appropriate. The authority under this sec5 tion shall terminate upon the transmittal of such

6 final report.

7 SEC. 202. ISSUANCE OF PHYSICAL DOCUMENTS IN THE

8 FORM OF BONDS, NOTES, OR CERTIFICATES

9 TO THE SOCIAL SECURITY TRUST FUNDS.

10 (a) REQUIREMENT THAT OBLIGATIONS ISSUED TO

11 THE OASDI TRUST FUNDS BE EVIDENCED BY PAPER

12 INSTRUMENTS IN THE FORM OF BONDS, NOTES, OR CER13 TIFICATES OF INDEBTEDNESS SETTING FORTH THEIR

14 TERMS.—Section 201(d) of the Social Security Act (42

15 U.S.C. 401(d)) is amended by inserting after the fifth sen16 tence the following new sentence: ‘‘Each obligation issued

17 for purchase by the Trust Funds under this subsection

18 shall be evidenced by a paper instrument in the form of

19 a bond, note, or certificate of indebtedness issued by the

20 Secretary of the Treasury setting forth the principal

21 amount, date of maturity, and interest rate of the obliga22 tion, and stating on its face that the obligation shall be

23 incontestable in the hands of the Trust Fund to which

24 it is issued, that the obligation is supported by the full

25 faith and credit of the United States, and that the United
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1 States is pledged to the payment of the obligation with

2 respect to both principal and interest.’’.

3 (b) PAYMENT TO THE OASDI TRUST FUNDS FROM

4 THE GENERAL FUND OF THE TREASURY OF INTEREST

5 ON OBLIGATIONS, AND OF PROCEEDS FROM THE SALE OR

6 REDEMPTION OF OBLIGATIONS, REQUIRED TO BE IN THE

7 FORM OF CHECKS.—Section 201(f) of such Act (42

8 U.S.C. 401(f)) is amended by adding at the end the follow9 ing new sentence: ‘‘Payment from the general fund of the

10 the Treasury to either of the Trust Funds of any such

11 interest or proceeds shall be in the form of paper checks

12 drawn on such general fund to the order of such Trust

13 Fund.’’.

14 (c) EFFECTIVE DATE.—

15 (1) IN GENERAL.—The amendments made by

16 this section shall apply with respect to obligations is17 sued, and payments made, after 60 days after the

18 date of the enactment of this Act.

19 (2) TREATMENT OF OUTSTANDING OBLIGA20 TIONS.—Not later than 60 days after the date of the

21 enactment of this Act, the Secretary of the Treasury

22 shall issue to the Federal Old-Age and Survivors In23 surance Trust Fund or the Federal Disability Insur24 ance Trust Fund, as applicable, a paper instrument,

25 in the form of a bond, note, or certificate of indebt-
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1 edness, for each obligation which has been issued to

2 the Trust Fund under section 201(d) of the Social

3 Security Act and which is outstanding as of such

4 date. Each such document shall set forth the prin5 cipal amount, date of maturity, and interest rate of

6 the obligation, and shall state on its face that the

7 obligation shall be incontestable in the hands of the

8 Trust Fund to which it was issued, that the obliga9 tion is supported by the full faith and credit of the

10 United States, and that the United States is pledged

11 to the payment of the obligation with respect to both

12 principal and interest.

13 SEC. 203. EXPLICIT REQUIREMENTS FOR MAINTENANCE OF

14 TELEPHONE ACCESS TO LOCAL OFFICES OF

15 THE SOCIAL SECURITY ADMINISTRATION.

16 (a) MAINTENANCE OF SERVICE TO LOCAL OF17 FICES.—

18 (1) IN GENERAL.—Section 5110(a) of the Om19 nibus Budget Reconciliation Act of 1990 (104 Stat.

20 1388–272) is amended by adding at the end the fol21 lowing new sentence: ‘‘In carrying out the require22 ments of the preceding sentence, the Secretary shall

23 reestablish and maintain in service at least the same

24 number of telephone lines to each such local office
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1 as was in place as of such date, including telephone

2 sets for connections to such lines.’’.

3 (2) EFFECTIVE DATE.—The Secretary of

4 Health and Human Services shall ensure that the

5 requirements of the amendment made by paragraph

6 (1) are carried out no later than 90 days after the

7 date of the enactment of this Act.

8 (3) GAO REPORT.—The Comptroller General of

9 the United States shall make an independent deter10 mination of the number of telephone lines to each

11 local office of the Social Security Administration

12 which are in place as of 90 days after the enactment

13 of this Act and shall report his findings to the Com14 mittee on Ways and Means of the House of Rep15 resentatives and the Committee on Finance of the

16 Senate no later than 150 days after the date of the

17 enactment of this Act.

18 (b) MAINTENANCE OF TOLL-FREE TELEPHONE

19 NUMBER SERVICE.—The Secretary of Health and Human

20 Services shall ensure that toll-free telephone service pro21 vided by the Social Security Administration is maintained

22 at a level which is at least equal to that in effect on the

23 date of the enactment of this Act.
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1 SEC. 204. EXPANSION OF STATE OPTION TO EXCLUDE

2 SERVICE OF ELECTION OFFICIALS OR ELEC3 TION WORKERS FROM COVERAGE.

4 (a) LIMITATION ON MANDATORY COVERAGE OF

5 STATE ELECTION OFFICIALS AND ELECTION WORKERS

6 WITHOUT STATE RETIREMENT SYSTEM.—

7 (1) AMENDMENT TO SOCIAL SECURITY ACT.—

8 Section 210(a)(7)(F)(iv) of the Social Security Act

9 (42 U.S.C. 410(a)(7)(F)(iv)) (as amended by section

10 11332(a) of the Omnibus Budget Reconciliation Act

11 of 1990) is amended by striking ‘‘$100’’ and insert12 ing ‘‘$1,000 with respect to service performed dur13 ing 1995, and the adjusted amount determined

14 under section 218(c)(8)(B) for any subsequent year

15 with respect to service performed during such subse16 quent year’’.

17 (2) AMENDMENT TO FICA.—Section

18 3121(b)(7)(F)(iv) of the Internal Revenue Code of

19 1986 (as amended by section 11332(b) of the Omni20 bus Budget Reconciliation Act of 1990) is amended

21 by striking ‘‘$100’’ and inserting ‘‘$1,000 with re22 spect to service performed during 1995, and the

23 adjusted amount determined under section

24 218(c)(8)(B) of the Social Security Act for any sub25 sequent year with respect to service performed dur26 ing such subsequent year’’.
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1 (b) CONFORMING AMENDMENTS RELATING TO MED2 ICARE QUALIFIED GOVERNMENT EMPLOYMENT.—

3 (1) AMENDMENT TO SOCIAL SECURITY ACT.—

4 Section 210(p)(2)(E) of the Social Security Act (42

5 U.S.C. 410(p)(2)(E)) is amended by striking

6 ‘‘$100’’ and inserting ‘‘$1,000 with respect to serv7 ice performed during 1995, and the adjusted amount

8 determined under section 218(c)(8)(B) for any sub9 sequent year with respect to service performed dur10 ing such subsequent year’’.

11 (2) AMENDMENT TO FICA.—Section

12 3121(u)(2)(B)(ii)(V) of the Internal Revenue Code

13 of 1986 is amended by striking ‘‘$100’’ and insert14 ing ‘‘$1,000 with respect to service performed dur15 ing 1995, and the adjusted amount determined

16 under section 218(c)(8)(B) of the Social Security

17 Act for any subsequent year with respect to service

18 performed during such subsequent year’’.

19 (c) AUTHORITY FOR STATES TO MODIFY COVERAGE

20 AGREEMENTS WITH RESPECT TO ELECTION OFFICIALS

21 AND ELECTION WORKERS.—Section 218(c)(8) of the So22 cial Security Act (42 U.S.C. 418(c)(8)) is amended—

23 (1) by striking ‘‘on or after January 1, 1968,’’

24 and inserting ‘‘at any time’’;
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1 (2) by striking ‘‘$100’’ and inserting ‘‘$1,000

2 with respect to service performed during 1995, and

3 the adjusted amount determined under subpara4 graph (B) for any subsequent year with respect to

5 service performed during such subsequent year’’;

6 and

7 (3) by striking the last sentence and inserting

8 the following new sentence: ‘‘Any modification of an

9 agreement pursuant to this paragraph shall be effec10 tive with respect to services performed in and after

11 the calendar year in which the modification is mailed

12 or delivered by other means to the Secretary.’’.

13 (d) INDEXATION OF EXEMPT AMOUNT.—Section

14 218(c)(8) of such Act (as amended by subsection (c)) is

15 further amended—

16 (1) by inserting ‘‘(A)’’ after ‘‘(8)’’; and

17 (2) by adding at the end the following new sub18 paragraph:

19 ‘‘(B) For each year after 1995, the Secretary shall

20 adjust the amount referred to in subparagraph (A) at the

21 same time and in the same manner as is provided under

22 section 215(a)(1)(B)(ii) with respect to the amounts re23 ferred to in section 215(a)(1)(B)(i), except that—
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1 ‘‘(i) for purposes of this subparagraph, 1993

2 shall be substituted for the calendar year referred to

3 in section 215(a)(1)(B)(ii)(II), and

4 ‘‘(ii) such amount as so adjusted, if not a mul5 tiple of $100, shall be rounded to the next higher

6 multiple of $100 where such amount is a multiple of

7 $50 and to the nearest multiple of $100 in any other

8 case.

9 The Secretary shall determine and publish in the Federal

10 Register each adjusted amount determined under this sub11 paragraph not later than November 1 preceding the year

12 for which the adjustment is made.’’.

13 (e) EFFECTIVE DATE.—The amendments made by

14 subsections (a), (b), and (c) shall apply with respect to

15 service performed on or after January 1, 1995.

16 SEC. 205. USE OF SOCIAL SECURITY NUMBERS BY STATES

17 AND LOCAL GOVERNMENTS AND FEDERAL

18 DISTRICT COURTS FOR JURY SELECTION

19 PURPOSES.

20 (a) IN GENERAL.—Section 205(c)(2) of the Social

21 Security Act (42 U.S.C. 405(c)(2)) is amended—

22 (1) in subparagraph (B)(i), by striking ‘‘(E)’’ in

23 the matter preceding subclause (I) and inserting

24 ‘‘(F)’’;
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1 (2) by redesignating subparagraphs (E) and

2 (F) as subparagraphs (F) and (G), respectively; and

3 (3) by inserting after subparagraph (D) the fol4 lowing:

5 ‘‘(E)(i) It is the policy of the United States that—

6 ‘‘(I) any State (or any political subdivision of a

7 State) may utilize the social security account num8 bers issued by the Secretary for the additional pur9 poses described in clause (ii) if such numbers have

10 been collected and are otherwise utilized by such

11 State (or political subdivision) in accordance with

12 applicable law, and

13 ‘‘(II) any district court of the United States

14 may use, for such additional purposes, any such so15 cial security account numbers which have been so

16 collected and are so utilized by any State.

17 ‘‘(ii) The additional purposes described in this clause

18 are the following:

19 ‘‘(I) Identifying duplicate names of individuals

20 on master lists used for jury selection purposes.

21 ‘‘(II) Identifying on such master lists those in22 dividuals who are ineligible to serve on a jury by rea23 son of their conviction of a felony.

24 ‘‘(iii) To the extent that any provision of Federal law

25 enacted before the date of the enactment of this subpara-
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1 graph is inconsistent with the policy set forth in clause

2 (i), such provision shall, on and after that date, be null,

3 void, and of no effect.

4 ‘‘(iv) For purposes of this subparagraph, the term

5 ‘State’ has the meaning such term has in subparagraph

6 (D).’’.

7 (b) EFFECTIVE DATE.—The amendments made by

8 subsection (a) shall take effect on the date of the enact9 ment of this Act.

10 SEC. 206. AUTHORIZATION FOR ALL STATES TO EXTEND

11 COVERAGE TO STATE AND LOCAL POLICE12 MEN AND FIREMEN UNDER EXISTING COV13 ERAGE AGREEMENTS.

14 (a) IN GENERAL.—Section 218(l) of the Social Secu15 rity Act (42 U.S.C. 418(l)) is amended—

16 (1) in paragraph (1), by striking ‘‘(1)’’ after

17 ‘‘(l)’’, and by striking ‘‘the State of’’ and all that fol18 lows through ‘‘prior to the date of enactment of this

19 subsection’’ and inserting ‘‘a State entered into pur20 suant to this section’’; and

21 (2) by striking paragraph (2).

22 (b) CONFORMING AMENDMENT.—Section

23 218(d)(8)(D) of such Act (42 U.S.C. 418(d)(8)(D)) is

24 amended by striking ‘‘agreements with the States named
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1 in’’ and inserting ‘‘State agreements modified as provided

2 in’’.

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

4 this section shall apply with respect to modifications filed

5 by States after the date of the enactment of this Act.

6 SEC. 207. LIMITED EXEMPTION FOR CANADIAN MINISTERS

7 FROM CERTAIN SELF-EMPLOYMENT TAX LI8 ABILITY.

9 (a) IN GENERAL.—Notwithstanding any other provi10 sion of law, if—

11 (1) an individual performed services described

12 in section 1402(c)(4) of the Internal Revenue Code

13 of 1986 which are subject to tax under section 1401

14 of such Code,

15 (2) such services were performed in Canada at

16 a time when no agreement between the United

17 States and Canada pursuant to section 233 of the

18 Social Security Act was in effect, and

19 (3) such individual was required to pay con20 tributions on the earnings from such services under

21 the social insurance system of Canada,

22 then such individual may file a certificate under this sec23 tion in such form and manner, and with such official, as

24 may be prescribed in regulations issued under chapter 2

25 of such Code. Upon the filing of such certificate, notwith-
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1 standing any judgment which has been entered to the con2 trary, such individual shall be exempt from payment of

3 such tax with respect to services described in paragraphs

4 (1) and (2) and from any penalties or interest for failure

5 to pay such tax or to file a self-employment tax return

6 as required under section 6017 of such Code.

7 (b) PERIOD FOR FILING.—A certificate referred to

8 in subsection (a) may be filed only during the 180-day

9 period commencing with the date on which the regulations

10 referred to in subsection (a) are issued.

11 (c) TAXABLE YEARS AFFECTED BY CERTIFICATE.—

12 A certificate referred to in subsection (a) shall be effective

13 for taxable years ending after December 31, 1978, and

14 before January 1, 1985.

15 (d) RESTRICTION ON CREDITING OF EXEMPT SELF16 EMPLOYMENT INCOME.—In any case in which an individ17 ual is exempt under this section from paying a tax im18 posed under section 1401 of the Internal Revenue Code

19 of 1986, any income on which such tax would have been

20 imposed but for such exemption shall not constitute self21 employment income under section 211(b) of the Social Se22 curity Act (42 U.S.C. 411(b)), and, if such individual’s

23 primary insurance amount has been determined under sec24 tion 215 of such Act (42 U.S.C. 415), notwithstanding

25 section 215(f)(1) of such Act, the Secretary of Health and
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1 Human Services shall recompute such primary insurance

2 amount so as to take into account the provisions of this

3 subsection. The recomputation under this subsection shall

4 be effective with respect to benefits for months following

5 approval of the certificate of exemption.

6 SEC. 208. EXCLUSION OF TOTALIZATION BENEFITS FROM

7 THE APPLICATION OF THE WINDFALL ELIMI8 NATION PROVISION.

9 (a) IN GENERAL.—Section 215(a)(7) of the Social

10 Security Act (42 U.S.C. 415(a)(7)) is amended—

11 (1) in subparagraph (A), by striking ‘‘but ex12 cluding’’ and all that follows through ‘‘1937’’ and

13 inserting ‘‘but excluding (I) a payment under the

14 Railroad Retirement Act of 1974 or 1937, and (II)

15 a payment by a social security system of a foreign

16 country based on an agreement concluded between

17 the United States and such foreign country pursuant

18 to section 233’’; and

19 (2) in subparagraph (E), by inserting after ‘‘in

20 the case of an individual’’ the following: ‘‘whose eli21 gibility for old-age or disability insurance benefits is

22 based on an agreement concluded pursuant to sec23 tion 233 or an individual’’.

24 (b) CONFORMING AMENDMENT RELATING TO BENE25 FITS UNDER 1939 ACT.—Section 215(d)(3) of such Act
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1 (42 U.S.C. 415(d)(3)) is amended by striking ‘‘but exclud2 ing’’ and all that follows through ‘‘1937’’ and inserting

3 ‘‘but excluding (I) a payment under the Railroad Retire4 ment Act of 1974 or 1937, and (II) a payment by a social

5 security system of a foreign country based on an agree6 ment concluded between the United States and such for7 eign country pursuant to section 233’’.

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

9 this section shall apply (notwithstanding section 215(f)(1)

10 of the Social Security Act (42 U.S.C. 415(f)(1))) with re11 spect to benefits payable for months after January 1995.

12 SEC. 209. EXCLUSION OF MILITARY RESERVISTS FROM AP13 PLICATION OF THE GOVERNMENT PENSION

14 OFFSET AND WINDFALL ELIMINATION PROVI15 SIONS.

16 (a) EXCLUSION FROM GOVERNMENT PENSION OFF17 SET PROVISIONS.—Subsections (b)(4), (c)(2), (e)(7),

18 (f)(2), and (g)(4) of section 202 of the Social Security Act

19 (42 U.S.C. 402 (b)(4), (c)(2), (e)(7), (f)(2), and (g)(4))

20 are each amended—

21 (1) in subparagraph (A)(ii), by striking ‘‘unless

22 subparagraph (B) applies.’’;

23 (2) in subparagraph (A), by striking ‘‘The’’ in

24 the matter following clause (ii) and inserting ‘‘unless

25 subparagraph (B) applies. The’’; and
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1 (3) in subparagraph (B), by redesignating the

2 existing matter as clause (ii), and by inserting before

3 such clause (ii) (as so redesignated) the following:

4 ‘‘(B)(i) Subparagraph (A)(i) shall not apply with re5 spect to monthly periodic benefits based wholly on service

6 as a member of a uniformed service (as defined in section

7 210(m)).’’.

8 (b) EXCLUSION FROM WINDFALL ELIMINATION

9 PROVISIONS.—Section 215(a)(7)(A) of such Act (as

10 amended by section 210(a) of this Act) and section

11 215(d)(3) of such Act (as amended by section 210(b) of

12 this Act) are each further amended—

13 (1) by striking ‘‘and’’ before ‘‘(II)’’; and

14 (2) by striking ‘‘section 233’’ and inserting

15 ‘‘section 233, and (III) a payment based wholly on

16 service as a member of a uniformed service (as de17 fined in section 210(m))’’.

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

19 this section shall apply (notwithstanding section 215(f) of

20 the Social Security Act) with respect to benefits payable

21 for months after January 1995.
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1 SEC. 210. REPEAL OF THE FACILITY-OF-PAYMENT PROVI2 SION.

3 (a) REPEAL OF RULE PRECLUDING REDISTRIBUTION

4 UNDER FAMILY MAXIMUM.—Section 203(i) of the Social

5 Security Act (42 U.S.C. 403(i)) is repealed.

6 (b) COORDINATION UNDER FAMILY MAXIMUM OF

7 REDUCTION IN BENEFICIARY’S AUXILIARY BENEFITS

8 WITH SUSPENSION OF AUXILIARY BENEFITS OF OTHER

9 BENEFICIARY UNDER EARNINGS TEST.—Section

10 203(a)(4) of such Act (42 U.S.C. 403(a)(4)) is amended

11 by striking ‘‘section 222(b). Whenever’’ and inserting the

12 following: ‘‘section 222(b). Notwithstanding the preceding

13 sentence, any reduction under this subsection in the case

14 of an individual who is entitled to a benefit under sub15 section (b), (c), (d), (e), (f), (g), or (h) of section 202 for

16 any month on the basis of the same wages and self-em17 ployment income as another person—

18 ‘‘(A) who also is entitled to a benefit under sub19 section (b), (c), (d), (e), (f), (g), or (h) of section

20 202 for such month,

21 ‘‘(B) who does not live in the same household

22 as such individual, and

23 ‘‘(C) whose benefit for such month is suspended

24 (in whole or in part) pursuant to subsection (h)(3)

25 of this section,
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1 shall be made before the suspension under subsection

2 (h)(3). Whenever’’.

3 (c) CONFORMING AMENDMENT APPLYING EARNINGS

4 REPORTING REQUIREMENT DESPITE SUSPENSION OF

5 BENEFITS.—The third sentence of section 203(h)(1)(A)

6 of such Act (42 U.S.C. 403(h)(1)(A)) is amended by strik7 ing ‘‘Such report need not be made’’ and all that follows

8 through ‘‘The Secretary may grant’’ and inserting the fol9 lowing: ‘‘Such report need not be made for any taxable

10 year—

11 ‘‘(i) beginning with or after the month in which

12 such individual attained age 70, or

13 ‘‘(ii) if benefit payments for all months (in such

14 taxable year) in which such individual is under age

15 70 have been suspended under the provisions of the

16 first sentence of paragraph (3) of this subsection,

17 unless—

18 ‘‘(I) such individual is entitled to benefits

19 under subsection (b), (c), (d), (e), (f), (g), or

20 (h) of section 202,

21 ‘‘(II) such benefits are reduced under sub22 section (a) of this section for any month in such

23 taxable year, and

24 ‘‘(III) in any such month there is another

25 person who also is entitled to benefits under
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1 subsection (b), (c), (d), (e), (f), (g), or (h) of

2 section 202 on the basis of the same wages and

3 self-employment income and who does not live

4 in the same household as such individual.

5 The Secretary may grant’’.

6 (d) CONFORMING AMENDMENT DELETING SPECIAL

7 INCOME TAX TREATMENT OF BENEFITS NO LONGER RE8 QUIRED BY REASON OF REPEAL.—Section 86(d)(1) of the

9 Internal Revenue Code of 1986 (relating to income tax

10 on social security benefits) is amended by striking the last

11 sentence.

12 (e) EFFECTIVE DATES.—

13 (1) The amendments made by subsections (a),

14 (b), and (c) shall apply with respect to benefits pay15 able for months after December 1995.

16 (2) The amendment made by subsection (d)

17 shall apply with respect to benefits received after

18 December 31, 1995, in taxable years ending after

19 such date.

20 SEC. 211. MAXIMUM FAMILY BENEFITS IN GUARANTEE

21 CASES.

22 (a) IN GENERAL.—Section 203(a) of the Social Secu23 rity Act (42 U.S.C. 403(a)) is amended by adding at the

24 end the following new paragraph:

25 ‘‘(10)(A) Subject to subparagraphs (B) and (C)—
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1 ‘‘(i) the total monthly benefits to which bene2 ficiaries may be entitled under sections 202 and 223

3 for a month on the basis of the wages and self-em4 ployment income of an individual whose primary in5 surance amount is computed under section

6 215(a)(2)(B)(i) shall equal the total monthly bene7 fits which were authorized by this section with re8 spect to such individual’s primary insurance amount

9 for the last month of his prior entitlement to disabil10 ity insurance benefits, increased for this purpose by

11 the general benefit increases and other increases

12 under section 215(i) that would have applied to such

13 total monthly benefits had the individual remained

14 entitled to disability insurance benefits until the

15 month in which he became entitled to old-age insur16 ance benefits or reentitled to disability insurance

17 benefits or died, and

18 ‘‘(ii) the total monthly benefits to which bene19 ficiaries may be entitled under sections 202 and 223

20 for a month on the basis of the wages and self-em21 ployment income of an individual whose primary in22 surance amount is computed under section

23 215(a)(2)(C) shall equal the total monthly benefits

24 which were authorized by this section with respect to

25 such individual’s primary insurance amount for the
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1 last month of his prior entitlement to disability in2 surance benefits.

3 ‘‘(B) In any case in which—

4 ‘‘(i) the total monthly benefits with respect to

5 such individual’s primary insurance amount for the

6 last month of his prior entitlement to disability in7 surance benefits was computed under paragraph (6),

8 and

9 ‘‘(ii) the individual’s primary insurance amount

10 is computed under subparagraph (B)(i) or (C) of

11 section 215(a)(2) by reason of the individual’s enti12 tlement to old-age insurance benefits or death,

13 the total monthly benefits shall equal the total monthly

14 benefits that would have been authorized with respect to

15 the primary insurance amount for the last month of his

16 prior entitlement to disability insurance benefits if such

17 total monthly benefits had been computed without regard

18 to paragraph (6).

19 ‘‘(C) This paragraph shall apply before the applica20 tion of paragraph (3)(A), and before the application of

21 section 203(a)(1) of this Act as in effect in December

22 1978.’’.

23 (b) CONFORMING AMENDMENT.—Section 203(a)(8)

24 of such Act (42 U.S.C. 403(a)(8)) is amended by striking

25 ‘‘Subject to paragraph (7),’’ and inserting ‘‘Subject to
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1 paragraph (7) and except as otherwise provided in para2 graph (10)(C),’’.

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

4 this section shall apply for the purpose of determining the

5 total monthly benefits to which beneficiaries may be enti6 tled under sections 202 and 223 of the Social Security

7 Act based on the wages and self-employment income of

8 an individual who—

9 (1) becomes entitled to an old-age insurance

10 benefit under section 202(a) of such Act,

11 (2) becomes reentitled to a disability insurance

12 benefit under section 223 of such Act, or

13 (3) dies,

14 after January 1995.

15 SEC. 212. AUTHORIZATION FOR DISCLOSURE BY THE SEC16 RETARY OF HEALTH AND HUMAN SERVICES

17 OF INFORMATION FOR PURPOSES OF PUBLIC

18 OR PRIVATE EPIDEMIOLOGICAL AND SIMI19 LAR RESEARCH.

20 (a) IN GENERAL.—Section 1106 of the Social Secu21 rity Act (42 U.S.C. 1306) is amended—

22 (1) by redesignating subsections (d) and (e) as

23 subsections (e) and (f), respectively;
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1 (2) in subsection (f) (as so redesignated), by

2 striking ‘‘subsection (d)’’ and inserting ‘‘subsection

3 (e)’’; and

4 (3) by inserting after subsection (c) the follow5 ing new subsection:

6 ‘‘(d) Notwithstanding any other provision of this sec7 tion, in any case in which—

8 ‘‘(1) information regarding whether an individ9 ual is shown on the records of the Secretary as

10 being alive or deceased is requested from the Sec11 retary for purposes of epidemiological or similar re12 search which the Secretary finds may reasonably be

13 expected to contribute to a national health interest,

14 and

15 ‘‘(2) the requester agrees to reimburse the Sec16 retary for providing such information and to comply

17 with limitations on safeguarding and rerelease or

18 redisclosure of such information as may be specified

19 by the Secretary,

20 the Secretary shall comply with such request, except to

21 the extent that compliance with such request would con22 stitute a violation of the terms of any contract entered

23 into under section 205(r).’’.

24 (b) AVAILABILITY OF INFORMATION RETURNS RE25 GARDING WAGES PAID EMPLOYEES.—Section 6103(l)(5)
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1 of the Internal Revenue Code of 1986 (relating to disclo2 sure of returns and return information to the Department

3 of Health and Human Services for purposes other than

4 tax administration) is amended—

5 (1) by striking ‘‘for the purpose of’’ and insert6 ing ‘‘for the purpose of—’’;

7 (2) by striking ‘‘carrying out, in accordance

8 with an agreement’’ and inserting the following:

9 ‘‘(A) carrying out, in accordance with an

10 agreement’’;

11 (3) by striking ‘‘program.’’ and inserting ‘‘pro12 gram; or’’; and

13 (4) by adding at the end the following new sub14 paragraph:

15 ‘‘(B) providing information regarding the

16 mortality status of individuals for epidemiolog17 ical and similar research in accordance with

18 section 1106(d) of the Social Security Act.’’.

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

20 this section shall apply with respect to requests for infor21 mation made after the date of the enactment of this Act.
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1 SEC. 213. MISUSE OF SYMBOLS, EMBLEMS, OR NAMES IN

2 REFERENCE TO SOCIAL SECURITY PRO3 GRAMS AND AGENCIES.

4 (a) PROHIBITION OF UNAUTHORIZED REPRODUC5 TION, REPRINTING, OR DISTRIBUTION FOR FEE OF CER6 TAIN OFFICIAL PUBLICATIONS.—Section 1140(a) of the

7 Social Security Act (42 U.S.C. 1320b–10(a)) is amend8 ed—

9 (1) by redesignating paragraphs (1) and (2) as

10 subparagraphs (A) and (B), respectively;

11 (2) by inserting ‘‘(1)’’ after ‘‘(a)’’; and

12 (3) by adding at the end the following new

13 paragraph:

14 ‘‘(2) No person may, for a fee, reproduce, reprint,

15 or distribute any item consisting of a form, application,

16 or other publication of the Social Security Administration

17 unless such person has obtained specific, written author18 ization for such activity in accordance with regulations

19 which the Secretary shall prescribe.’’.

20 (b) ADDITION TO PROHIBITED WORDS, LETTERS,

21 SYMBOLS, AND EMBLEMS.—Paragraph (1) of section

22 1140(a) of such Act (as redesignated by subsection (a))

23 is further amended—

24 (1) in subparagraph (A) (as redesignated), by

25 striking ‘‘Administration’, the letters ‘SSA’ or

26 ‘HCFA’,’’ and inserting ‘‘Administration’, ‘Depart-
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1 ment of Health and Human Services’, ‘Health and

2 Human Services’, ‘Supplemental Security Income

3 Program’, or ‘Medicaid’, the letters ‘SSA’, ‘HCFA’,

4 ‘DHHS’, ‘HHS’, or ‘SSI’,’’; and

5 (2) in subparagraph (B) (as redesignated), by

6 striking ‘‘Social Security Administration’’ each place

7 it appears and inserting ‘‘Social Security Adminis8 tration, Health Care Financing Administration, or

9 Department of Health and Human Services’’, and

10 by striking ‘‘or of the Health Care Financing Ad11 ministration’’.

12 (c) EXEMPTION FOR USE OF WORDS, LETTERS,

13 SYMBOLS, AND EMBLEMS OF STATE AND LOCAL GOV14 ERNMENT AGENCIES BY SUCH AGENCIES.—Paragraph

15 (1) of section 1140(a) of such Act (as redesignated by sub16 section (a)) is further amended by adding at the end the

17 following new sentence: ‘‘The preceding provisions of this

18 subsection shall not apply with respect to the use by any

19 agency or instrumentality of a State or political subdivi20 sion of a State of any words or letters which identify an

21 agency or instrumentality of such State or of a political

22 subdivision of such State or the use by any such agency

23 or instrumentality of any symbol or emblem of an agency

24 or instrumentality of such State or a political subdivision

25 of such State.’’.
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1 (d) INCLUSION OF REASONABLENESS STANDARD.—

2 Section 1140(a)(1) of such Act (as amended by the pre3 ceding provisions of this section) is further amended, in

4 the matter following subparagraph (B) (as redesignated),

5 by striking ‘‘convey’’ and inserting ‘‘convey, or in a man6 ner which reasonably could be interpreted or construed as

7 conveying,’’.

8 (e) INEFFECTIVENESS OF DISCLAIMERS.—Sub9 section (a) of section 1140 of such Act (as amended by

10 the preceding provisions of this section) is further amend11 ed by adding at the end the following new paragraph:

12 ‘‘(3) Any determination of whether the use of one or

13 more words, letters, symbols, or emblems (or any combina14 tion or variation thereof) in connection with an item de15 scribed in paragraph (1) or the reproduction, reprinting,

16 or distribution of an item described in paragraph (2) is

17 a violation of this subsection shall be made without regard

18 to any inclusion in such item (or any so reproduced, re19 printed, or distributed copy thereof) of a disclaimer of af20 filiation with the United States Government or any par21 ticular agency or instrumentality thereof.’’.

22 (f) VIOLATIONS WITH RESPECT TO INDIVIDUAL

23 ITEMS.—Section 1140(b)(1) of such Act (42 U.S.C.

24 1320b–10(b)(1)) is amended by adding at the end the fol25 lowing new sentence: ‘‘In the case of any items referred
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1 to in subsection (a)(1) consisting of pieces of mail, each

2 such piece of mail which contains one or more words, let3 ters, symbols, or emblems in violation of subsection (a)

4 shall represent a separate violation. In the case of any

5 item referred to in subsection (a)(2), the reproduction, re6 printing, or distribution of such item shall be treated as

7 a separate violation with respect to each copy thereof so

8 reproduced, reprinted, or distributed.’’.

9 (g) ELIMINATION OF CAP ON AGGREGATE LIABILITY

10 AMOUNT.—

11 (1) REPEAL.—Paragraph (2) of section 1140(b)

12 of such Act (42 U.S.C. 1320b–10(b)(2)) is repealed.

13 (2) CONFORMING AMENDMENTS.—Section

14 1140(b) of such Act is further amended—

15 (A) by striking ‘‘(1) Subject to paragraph

16 (2), the’’ and inserting ‘‘The’’;

17 (B) by redesignating subparagraphs (A)

18 and (B) as paragraphs (1) and (2), respectively;

19 and

20 (C) in paragraph (1) (as redesignated), by

21 striking ‘‘subparagraph (B)’’ and inserting

22 ‘‘paragraph (2)’’.

23 (h) REMOVAL OF FORMAL DECLINATION REQUIRE24 MENT.—Section 1140(c)(1) of such Act (42 U.S.C.
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1 1320b–10(c)(1)) is amended by inserting ‘‘and the first

2 sentence of subsection (c)’’ after ‘‘and (i)’’.

3 (i) PENALTIES RELATING TO SOCIAL SECURITY AD4 MINISTRATION DEPOSITED IN OASI TRUST FUND.—Sec5 tion 1140(c)(2) of such Act (42 U.S.C. 1320b–10(c)(2))

6 is amended in the second sentence by striking ‘‘United

7 States.’’ and inserting ‘‘United States, except that, to the

8 extent that such amounts are recovered under this section

9 as penalties imposed for misuse of words, letters, symbols,

10 or emblems relating to the Social Security Administration,

11 such amounts shall be deposited into the Federal Old-Age

12 and Survivor’s Insurance Trust Fund.’’.

13 (j) ENFORCEMENT.—Section 1140 of such Act (42

14 U.S.C. 1320b–10) is amended by adding at the end the

15 following new subsection:

16 ‘‘(d) The preceding provisions of this section shall be

17 enforced through the Office of Inspector General of the

18 Department of Health and Human Services.’’.

19 (k) ANNUAL REPORTS.—Section 1140 of such Act

20 (as amended by the preceding provisions of this section)

21 is further amended by adding at the end the following new

22 subsection:

23 ‘‘(e) The Secretary shall include in the annual report

24 submitted pursuant to section 704 a report on the oper-
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1 ation of this section during the year covered by such an2 nual report. Such report shall specify—

3 ‘‘(1) the number of complaints of violations of

4 this section received by the Social Security Adminis5 tration during the year,

6 ‘‘(2) the number of cases in which a notice of

7 violation of this section was sent by the Social Secu8 rity Administration during the year requesting that

9 an individual cease activities in violation of this

10 section,

11 ‘‘(3) the number of complaints of violations of

12 this section referred by the Social Security Adminis13 tration to the Inspector General in the Department

14 of Health and Human Services during the year,

15 ‘‘(4) the number of investigations of violations

16 of this section undertaken by the Inspector General

17 during the year,

18 ‘‘(5) the number of cases in which a demand

19 letter was sent during the year assessing a civil

20 money penalty under this section,

21 ‘‘(6) the total amount of civil money penalties

22 assessed under this section during the year,

23 ‘‘(7) the number of requests for hearings filed

24 during the year pursuant to subsection (c)(1) of this

25 section and section 1128A(c)(2),
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1 ‘‘(8) the disposition during such year of hear2 ings filed pursuant to sections 1140(c)(1) and

3 1128A(c)(2), and

4 ‘‘(9) the total amount of civil money penalties

5 under this section deposited into the Federal Old6 Age and Survivors Insurance Trust Fund during the

7 year.’’.

8 (l) PROHIBITION OF MISUSE OF DEPARTMENT OF

9 THE TREASURY NAMES, SYMBOLS, ETC.—

10 (1) GENERAL RULE.—Subchapter II of chapter

11 3 of title 31, United States Code, is amended by

12 adding at the end thereof the following new section:

13 ‘‘§ 333. Prohibition of misuse of Department of the

14 Treasury names, symbols, etc.

15 ‘‘(a) GENERAL RULE.—No person may use, in con16 nection with, or as a part of, any advertisement, solicita17 tion, business activity, or product, whether alone or with

18 other words, letters, symbols, or emblems—

19 ‘‘(1) the words ‘Department of the Treasury’,

20 or the name of any service, bureau, office, or other

21 subdivision of the Department of the Treasury,

22 ‘‘(2) the titles ‘Secretary of the Treasury’ or

23 ‘Treasurer of the United States’ or the title of any

24 other officer or employee of the Department of the

25 Treasury,
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1 ‘‘(3) the abbreviations or initials of any entity

2 referred to in paragraph (1),

3 ‘‘(4) the words ‘United States Savings Bond’ or

4 the name of any other obligation issued by the De5 partment of the Treasury,

6 ‘‘(5) any symbol or emblem of an entity re7 ferred to in paragraph (1) (including the design of

8 any envelope or stationary used by such an entity),

9 and

10 ‘‘(6) any colorable imitation of any such words,

11 titles, abbreviations, initials, symbols, or emblems,

12 in a manner which could reasonably be interpreted or con13 strued as conveying the false impression that such adver14 tisement, solicitation, business activity, or product is in

15 any manner approved, endorsed, sponsored, or authorized

16 by, or associated with, the Department of the Treasury

17 or any entity referred to in paragraph (1) or any officer

18 or employee thereof.

19 ‘‘(b) TREATMENT OF DISCLAIMERS.—Any deter20 mination of whether a person has violated the provisions

21 of subsection (a) shall be made without regard to any use

22 of a disclaimer of affiliation with the United States Gov23 ernment or any particular agency or instrumentality there24 of.

25 ‘‘(c) CIVIL PENALTY.—
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1 ‘‘(1) IN GENERAL.—The Secretary of the

2 Treasury may impose a civil penalty on any person

3 who violates the provisions of subsection (a).

4 ‘‘(2) AMOUNT OF PENALTY.—The amount of

5 the civil penalty imposed by paragraph (1) shall not

6 exceed $5,000 for each use of any material in viola7 tion of subsection (a). If such use is in a broadcast

8 or telecast, the preceding sentence shall be applied

9 by substituting ‘$25,000’ for ‘$5,000’.

10 ‘‘(3) TIME LIMITATIONS.—

11 ‘‘(A) ASSESSMENTS.—The Secretary of the

12 Treasury may assess any civil penalty under

13 paragraph (1) at any time before the end of the

14 3-year period beginning on the date of the vio15 lation with respect to which such penalty is im16 posed.

17 ‘‘(B) CIVIL ACTION.—The Secretary of the

18 Treasury may commence a civil action to re19 cover any penalty imposed under this subsection

20 at any time before the end of the 2-year period

21 beginning on the date on which such penalty

22 was assessed.

23 ‘‘(4) COORDINATION WITH SUBSECTION (d).—

24 No penalty may be assessed under this subsection

25 with respect to any violation after a criminal pro-
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1 ceeding with respect to such violation has been com2 menced under subsection (d).

3 ‘‘(d) CRIMINAL PENALTY.—

4 ‘‘(1) IN GENERAL.—If any person knowingly

5 violates subsection (a), such person shall, upon con6 viction thereof, be fined not more than $10,000 for

7 each such use or imprisoned not more than 1 year,

8 or both. If such use is in a broadcast or telecast, the

9 preceding sentence shall be applied by substituting

10 ‘$50,000’ for ‘$10,000’.

11 ‘‘(2) TIME LIMITATIONS.—No person may be

12 prosecuted, tried, or punished under paragraph (1)

13 for any violation of subsection (a) unless the indict14 ment is found or the information instituted during

15 the 3-year period beginning on the date of the viola16 tion.

17 ‘‘(3) COORDINATION WITH SUBSECTION (c).—

18 No criminal proceeding may be commenced under

19 this subsection with respect to any violation if a civil

20 penalty has previously been assessed under sub21 section (c) with respect to such violation.’’

22 (2) CLERICAL AMENDMENT.—The analysis for

23 chapter 3 of title 31, United States Code, is amend24 ed by adding after the item relating to section 332

25 the following new item:
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‘‘333. Prohibition of misuse of Department of the Treasury names, symbols,

etc.’’.

1 (3) REPORT.—Not later than May 1, 1996, the

2 Secretary of the Treasury shall submit a report to

3 the Committee on Ways and Means of the House of

4 Representatives and the Committee on Finance of

5 the Senate on the implementation of the amend6 ments made by this section. Such report shall in7 clude the number of cases in which the Secretary

8 has notified persons of violations of section 333 of

9 title 31, United States Code (as added by subsection

10 (a)), the number of prosecutions commenced under

11 such section, and the total amount of the penalties

12 collected in such prosecutions.

13 (m) EFFECTIVE DATE.—The amendments made by

14 this section shall apply with respect to violations occurring

15 after the date of the enactment of this Act.

16 SEC. 214. INCREASED PENALTIES FOR UNAUTHORIZED DIS17 CLOSURE OF SOCIAL SECURITY INFORMA18 TION.

19 (a) UNAUTHORIZED DISCLOSURE.—Section 1106(a)

20 of the Social Security Act (42 U.S.C. 1306(a)) is amend21 ed—

22 (1) by striking ‘‘misdemeanor’’ and inserting

23 ‘‘felony’’;
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1 (2) by striking ‘‘$1,000’’ and inserting

2 ‘‘$10,000 for each occurrence of a violation’’; and

3 (3) by striking ‘‘one year’’ and inserting ‘‘5

4 years’’.

5 (b) UNAUTHORIZED DISCLOSURE BY FRAUD.—Sec6 tion 1107(b) of such Act (42 U.S.C. 1307(b)) is amend7 ed—

8 (1) by inserting ‘‘social security account num9 ber,’’ after ‘‘information as to the’’;

10 (2) by striking ‘‘misdemeanor’’ and inserting

11 ‘‘felony’’;

12 (3) by striking ‘‘$1,000’’ and inserting

13 ‘‘$10,000 for each occurrence of a violation’’; and

14 (4) by striking ‘‘one year’’ and inserting ‘‘5

15 years’’.

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

17 this section shall apply to violations occurring on or after

18 the date of the enactment of this Act.

19 SEC. 215. INCREASE IN AUTHORIZED PERIOD FOR EXTEN20 SION OF TIME TO FILE ANNUAL EARNINGS

21 REPORT.

22 (a) IN GENERAL.—Section 203(h)(1)(A) of the Social

23 Security Act (42 U.S.C. 403(h)(1)(A)) is amended in the

24 last sentence by striking ‘‘three months’’ and inserting

25 ‘‘four months’’.
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1 (b) EFFECTIVE DATE.—The amendment made by

2 subsection (a) shall apply with respect to reports of earn3 ings for taxable years ending on or after December 31,

4 1994.

5 SEC. 216. EXTENSION OF DISABILITY INSURANCE PRO6 GRAM DEMONSTRATION PROJECT AUTHOR7 ITY.

8 (a) IN GENERAL.—Section 505 of the Social Security

9 Disability Amendments of 1980 (Public Law 96–265), as

10 amended by section 12101 of the Consolidated Omnibus

11 Budget Reconciliation Act of 1985 (Public Law 99–272),

12 section 10103 of the Omnibus Budget Reconciliation Act

13 of 1989 (Public Law 101–239), and section 5120 of the

14 Omnibus Budget Reconciliation Act of 1990 (Public Law

15 101–508) is further amended—

16 (1) in paragraph (3) of subsection (a), by strik17 ing ‘‘June 10, 1993’’ and inserting ‘‘June 10,

18 1996’’;

19 (2) in paragraph (4) of subsection (a), by strik20 ing ‘‘1992’’ and inserting ‘‘1995’’; and

21 (3) in subsection (c), by striking ‘‘October 1,

22 1993’’ and inserting ‘‘October 1, 1996’’.

23 (b) EFFECTIVE DATE.—The amendments made by

24 this section shall take effect on the date of the enactment

25 of this Act.
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1 SEC. 217. CROSS-MATCHING OF SOCIAL SECURITY AC2 COUNT NUMBER INFORMATION AND EM3 PLOYER IDENTIFICATION NUMBER INFORMA4 TION MAINTAINED BY THE DEPARTMENT OF

5 AGRICULTURE.

6 (a) SOCIAL SECURITY ACCOUNT NUMBER INFORMA7 TION.—Clause (iii) of section 205(c)(2)(C) of the Social

8 Security Act (42 U.S.C. 405(c)(2)(C)) (as added by sec9 tion 1735(a)(3) of the Food, Agriculture, Conservation,

10 and Trade Act of 1990 (Public Law 101–624; 104 Stat.

11 3791)) is amended—

12 (1) by inserting ‘‘(I)’’ after ‘‘(iii)’’; and

13 (2) by striking ‘‘The Secretary of Agriculture

14 shall restrict’’ and all that follows and inserting the

15 following:

16 ‘‘(II) The Secretary of Agriculture may share any in17 formation contained in any list referred to in subclause

18 (I) with any other agency or instrumentality of the United

19 States which otherwise has access to social security ac20 count numbers in accordance with this subsection or other

21 applicable Federal law, except that the Secretary of Agri22 culture may share such information only to the extent that

23 such Secretary determines such sharing would assist in

24 verifying and matching such information against informa25 tion maintained by such other agency or instrumentality.

26 Any such information shared pursuant to this subclause
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1 may be used by such other agency or instrumentality only

2 for the purpose of effective administration and enforce3 ment of the Food Stamp Act of 1977 or for the purpose

4 of investigation of violations of other Federal laws or en5 forcement of such laws.

6 ‘‘(III) The Secretary of Agriculture, and the head of

7 any other agency or instrumentality referred to in this

8 subclause, shall restrict, to the satisfaction of the Sec9 retary of Health and Human Services, access to social se10 curity account numbers obtained pursuant to this clause

11 only to officers and employees of the United States whose

12 duties or responsibilities require access for the purposes

13 described in subclause (II).

14 ‘‘(IV) The Secretary of Agriculture, and the head of

15 any agency or instrumentality with which information is

16 shared pursuant to clause (II), shall provide such other

17 safeguards as the Secretary of Health and Human Serv18 ices determines to be necessary or appropriate to protect

19 the confidentiality of the social security account

20 numbers.’’.

21 (b) EMPLOYER IDENTIFICATION NUMBER INFORMA22 TION.—Subsection (f) of section 6109 of the Internal Rev23 enue Code of 1986 (as added by section 1735(c) of the

24 Food, Agriculture, Conservation, and Trade Act of 1990

25 (Public Law 101–624; 104 Stat. 3792)) (relating to access
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1 to employer identification numbers by Secretary of Agri2 culture for purposes of Food Stamp Act of 1977) is

3 amended—

4 (1) by striking paragraph (2) and inserting the

5 following:

6 ‘‘(2) SHARING OF INFORMATION AND SAFE7 GUARDS.—

8 ‘‘(A) SHARING OF INFORMATION.—The

9 Secretary of Agriculture may share any infor10 mation contained in any list referred to in para11 graph (1) with any other agency or instrumen12 tality of the United States which otherwise has

13 access to employer identification numbers in ac14 cordance with this section or other applicable

15 Federal law, except that the Secretary of Agri16 culture may share such information only to the

17 extent that such Secretary determines such

18 sharing would assist in verifying and matching

19 such information against information main20 tained by such other agency or instrumentality.

21 Any such information shared pursuant to this

22 subparagraph may be used by such other agen23 cy or instrumentality only for the purpose of ef24 fective administration and enforcement of the

25 Food Stamp Act of 1977 or for the purpose of
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1 investigation of violations of other Federal laws

2 or enforcement of such laws.

3 ‘‘(B) SAFEGUARDS.—The Secretary of Ag4 riculture, and the head of any other agency or

5 instrumentality referred to in subparagraph

6 (A), shall restrict, to the satisfaction of the Sec7 retary of the Treasury, access to employer iden8 tification numbers obtained pursuant to this

9 subsection only to officers and employees of the

10 United States whose duties or responsibilities

11 require access for the purposes described in

12 subparagraph (A). The Secretary of Agri13 culture, and the head of any agency or instru14 mentality with which information is shared pur15 suant to subparagraph (A), shall provide such

16 other safeguards as the Secretary of the Treas17 ury determines to be necessary or appropriate

18 to protect the confidentiality of the employer

19 identification numbers.’’;

20 (2) in paragraph (3), by striking ‘‘by the Sec21 retary of Agriculture pursuant to this subsection’’

22 and inserting ‘‘pursuant to this subsection by the

23 Secretary of Agriculture or the head of any agency

24 or instrumentality with which information is shared

25 pursuant to paragraph (2)’’, and by striking ‘‘social
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1 security account numbers’’ and inserting ‘‘employer

2 identification numbers’’; and

3 (3) in paragraph (4), by striking ‘‘by the Sec4 retary of Agriculture pursuant to this subsection’’

5 and inserting ‘‘pursuant to this subsection by the

6 Secretary of Agriculture or any agency or instru7 mentality with which information is shared pursuant

8 to paragraph (2)’’.

9 SEC. 218. CERTAIN TRANSFERS TO RAILROAD RETIREMENT

10 ACCOUNT MADE PERMANENT.

11 Subsection (c)(1)(A) of section 224 of the Railroad

12 Retirement Solvency Act of 1983 (relating to section 72(r)

13 revenue increase transferred to certain railroad accounts)

14 is amended by striking ‘‘with respect to benefits received

15 before October 1, 1992’’.

16 SEC. 219. AUTHORIZATION FOR USE OF SOCIAL SECURITY

17 ACCOUNT NUMBERS BY DEPARTMENT OF

18 LABOR IN ADMINISTRATION OF FEDERAL

19 WORKERS’ COMPENSATION LAWS.

20 Section 205(c)(2)(C) of the Social Security Act (42

21 U.S.C. 405(c)(2)(C)) is amended by adding at the end the

22 following new clause:

23 ‘‘(ix) In the administration of the provisions of chap24 ter 81 of title 5, United States Code, and the Longshore

25 and Harbor Workers’ Compensation Act (33 U.S.C. 901
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1 et seq.), the Secretary of Labor may require by regulation

2 that any person filing a notice of injury or a claim for

3 benefits under such provisions provide as part of such no4 tice or claim such person’s social security account number,

5 subject to the requirements of this clause. No officer or

6 employee of the Department of Labor shall have access

7 to any such number for any purpose other than the estab8 lishment of a system of records necessary for the effective

9 administration of such provisions. The Secretary of Labor

10 shall restrict, to the satisfaction of the Secretary of Health

11 and Human Services, access to social security account

12 numbers obtained pursuant to this clause to officers and

13 employees of the United States whose duties or respon14 sibilities require access for the administration or enforce15 ment of such provisions. The Secretary of Labor shall pro16 vide such other safeguards as the Secretary of Health and

17 Human Services determines to be necessary or appropriate

18 to protect the confidentiality of the social security account

19 numbers.’’.

20 SEC. 220. COVERAGE UNDER FICA OF FEDERAL EMPLOY21 EES TRANSFERRED TEMPORARILY TO INTER22 NATIONAL ORGANIZATIONS.

23 (a) TREATMENT OF SERVICE IN THE EMPLOY OF

24 INTERNATIONAL ORGANIZATIONS BY CERTAIN TRANS25 FERRED FEDERAL EMPLOYEES.—
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1 (1) IN GENERAL.—Section 3121 of the Internal

2 Revenue Code of 1986 (relating to definitions) is

3 amended by adding at the end the following new

4 subsection:

5 ‘‘(y) SERVICE IN THE EMPLOY OF INTERNATIONAL

6 ORGANIZATIONS BY CERTAIN TRANSFERRED FEDERAL

7 EMPLOYEES.—

8 ‘‘(1) IN GENERAL.—For purposes of this chap9 ter, service performed in the employ of an inter10 national organization by an individual pursuant to a

11 transfer of such individual to such international or12 ganization pursuant to section 3582 of title 5,

13 United States Code, shall constitute ‘employment’

14 if—

15 ‘‘(A) immediately before such transfer,

16 such individual performed service with a Fed17 eral agency which constituted ‘employment’

18 under subsection (b) for purposes of the taxes

19 imposed by sections 3101(a) and 3111(a), and

20 ‘‘(B) such individual would be entitled,

21 upon separation from such international organi22 zation and proper application, to reemployment

23 with such Federal agency under such section

24 3582.
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1 ‘‘(2) DEFINITIONS.—For purposes of this sub2 section—

3 ‘‘(A) FEDERAL AGENCY.—The term ‘Fed4 eral agency’ means an agency, as defined in

5 section 3581(1) of title 5, United States Code.

6 ‘‘(B) INTERNATIONAL ORGANIZATION.—

7 The term ‘international organization’ has the

8 meaning provided such term by section 3581(3)

9 of title 5, United States Code.’’

10 (2) CONTRIBUTIONS BY FEDERAL AGENCY.—

11 Section 3122 of such Code (relating to Federal serv12 ice) is amended by inserting after the first sentence

13 the following new sentence: ‘‘In the case of the taxes

14 imposed by this chapter with respect to service per15 formed in the employ of an international organiza16 tion pursuant to a transfer to which the provisions

17 of section 3121(y) are applicable, the determination

18 of the amount of remuneration for such service, and

19 the return and payment of the taxes imposed by this

20 chapter, shall be made by the head of the Federal

21 agency from which the transfer was made.’’

22 (3) COLLECTION OF EMPLOYEE CONTRIBU23 TIONS.—Section 3102 of such Code (relating to de24 duction of tax from wages) is amended by adding at

25 the end the following new subsection:
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1 ‘‘(e) SPECIAL RULE FOR CERTAIN TRANSFERRED

2 FEDERAL EMPLOYEES.—In the case of any payments of

3 wages for service performed in the employ of an inter4 national organization pursuant to a transfer to which the

5 provisions of section 3121(y) are applicable—

6 ‘‘(1) subsection (a) shall not apply,

7 ‘‘(2) the head of the Federal agency from which

8 the transfer was made shall separately include on

9 the statement required under section 6051—

10 ‘‘(A) the amount determined to be the

11 amount of the wages for such service, and

12 ‘‘(B) the amount of the tax imposed by

13 section 3101 on such payments, and

14 ‘‘(3) the tax imposed by section 3101 on such

15 payments shall be paid by the employee.’’

16 (4) EXCLUSION FROM TREATMENT AS TRADE

17 OR BUSINESS.—Paragraph (2)(C) of section 1402(c)

18 of such Code (defining trade or business) is amend19 ed by adding at the end the following: ‘‘except serv20 ice which constitutes ‘employment’ under section

21 3121(y),’’.

22 (5) CONFORMING AMENDMENT.—Paragraph

23 (15) of section 3121(b) of such Code is amended by

24 inserting ‘‘, except service which constitutes ‘em-
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1 ployment’ under subsection (y)’’ after ‘‘organiza2 tion’’.

3 (b) AMENDMENTS TO THE SOCIAL SECURITY ACT.—

4 (1) IN GENERAL.—Section 210 of the Social

5 Security Act (42 U.S.C. 410) is amended by adding

6 at the end the following new subsection:

7 ‘‘SERVICE IN THE EMPLOY OF INTERNATIONAL ORGANI8 ZATIONS BY CERTAIN TRANSFERRED FEDERAL EM9 PLOYEES

10 ‘‘(r)(1) For purposes of this title, service performed

11 in the employ of an international organization by an indi12 vidual pursuant to a transfer of such individual to such

13 international organization pursuant to section 3582 of

14 title 5, United States Code, shall constitute ‘employment’

15 if—

16 ‘‘(A) immediately before such transfer, such in17 dividual performed service with a Federal agency

18 which constituted ‘employment’ as defined in sub19 section (a), and

20 ‘‘(B) such individual would be entitled, upon

21 separation from such international organization and

22 proper application, to reemployment with such Fed23 eral agency under such section 3582.

24 ‘‘(2) For purposes of this subsection:
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1 ‘‘(A) The term ‘Federal agency’ means an agen2 cy, as defined in section 3581(1) of title 5, United

3 States Code.

4 ‘‘(B) The term ‘international organization’ has

5 the meaning provided such term by section 3581(3)

6 of title 5, United States Code.’’

7 (2) EXCLUSION FROM TREATMENT AS TRADE

8 OR BUSINESS.—Section 211(c)(2)(C) of such Act

9 (42 U.S.C. 411(c)(2)(C)) is amended by inserting

10 before the semicolon the following ‘‘, except service

11 which constitutes ‘employment’ under section

12 210(r)’’.

13 (3) CONFORMING AMENDMENT.—Section

14 210(a)(15) of such Act (42 U.S.C. 410(a)(15)) is

15 amended by inserting ‘‘, except service which con16 stitutes ‘employment’ under subsection (r)’’ before

17 the semicolon.

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

19 this section shall apply with respect to service performed

20 after the calendar quarter following the calendar quarter

21 in which the date of the enactment of this Act occurs.
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1 SEC. 221. EXTEND THE FICA TAX EXEMPTION AND CERTAIN

2 TAX RULES TO INDIVIDUALS WHO ENTER

3 THE UNITED STATES UNDER A VISA ISSUED

4 UNDER SECTION 101 OF THE IMMIGRATION

5 AND NATIONALITY ACT.

6 (a) AMENDMENTS TO THE INTERNAL REVENUE

7 CODE OF 1986.—

8 (1) The following provisions of the Internal

9 Revenue Code of 1986 are each amended by striking

10 ‘‘(J), or (M)’’ each place it appears and inserting

11 ‘‘(J), (M), or (Q)’’:

12 (A) Section 871(c).

13 (B) Section 1441(b).

14 (C) Section 3121(b)(19).

15 (D) Section 3231(e)(1).

16 (E) Section 3306(c)(19).

17 (2) Paragraph (3) of section 872(b) of such

18 Code is amended by striking ‘‘(F) or (J)’’ and in19 serting ‘‘(F), (J), or (Q)’’.

20 (3) Paragraph (5) of section 7701(b) of such

21 Code is amended by striking ‘‘subparagraph (J)’’ in

22 subparagraphs (C)(i) and (D)(i)(II) and inserting

23 ‘‘subparagraph (J) or (Q)’’.

24 (b) AMENDMENT TO SOCIAL SECURITY ACT.—Para25 graph (19) of section 210(a) of the Social Security Act
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1 is amended by striking ‘‘(J), or (M)’’ each place it appears

2 and inserting ‘‘(J), (M), or (Q)’’.

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

4 this subsection shall take effect with the calendar quarter

5 following the date of the enactment of this Act.

6 SEC. 222. STUDY OF RISING COSTS OF DISABILITY INSUR7 ANCE BENEFITS.

8 (a) IN GENERAL.—As soon as practicable after the

9 date of the enactment of this Act, the Secretary of Health

10 and Human Services shall conduct a comprehensive study

11 of the reasons for rising costs payable from the Federal

12 Disability Insurance Trust Fund.

13 (b) MATTERS TO BE INCLUDED IN STUDY.—In con14 ducting the study under this section, the Secretary shall—

15 (1) determine the relative importance of the fol16 lowing factors in increasing the costs payable from

17 the Trust Fund:

18 (A) increased numbers of applications for

19 benefits;

20 (B) higher rates of benefit allowances; and

21 (C) decreased rates of benefit terminations;

22 and

23 (2) identify, to the extent possible, underlying

24 social, economic, demographic, programmatic, and
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1 other trends responsible for changes in disability

2 benefit applications, allowances, and terminations.

3 (c) REPORT.—Not later than December 31, 1994, the

4 Secretary shall transmit a report to the Committee on

5 Ways and Means of the House of Representatives and the

6 Committee on Finance of the Senate setting forth the re7 sults of the study conducted under this section, together

8 with any recommendations for legislative changes which

9 the Secretary determines appropriate.

10 SEC. 223. COMMISSION ON CHILDHOOD DISABILITY.

11 (a) ESTABLISHMENT OF COMMISSION.—The Sec12 retary of Health and Human Services (in this section re13 ferred to as the ‘‘Secretary’’) shall appoint a Commission

14 on the Evaluation of Disability in Children (in this section

15 referred to as the ‘‘Commission’’).

16 (b) APPOINTMENT OF MEMBERS.—(1) The Secretary

17 shall appoint not less than 9 but not more than 15 mem18 bers to the Commission, including—

19 (A) recognized experts in the field of medicine,

20 whose work involves—

21 (i) the evaluation and treatment of disabil22 ity in children,

23 (ii) the study of congenital, genetic, or

24 perinatal disorders in children, or
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1 (iii) the measurement of developmental

2 milestones and developmental deficits in chil3 dren; and

4 (B) recognized experts in the fields of—

5 (i) psychology,

6 (ii) education and rehabilitation,

7 (iii) law,

8 (iv) the administration of disability pro9 grams,

10 (v) social insurance (including health in11 surance), and

12 (vi) other fields of expertise that the Sec13 retary determines to be appropriate.

14 (2) Members shall be appointed by January 1, 1995,

15 without regard to the provisions of title 5, United States

16 Code, governing appointments to competitive service.

17 (3) Members appointed under this subsection shall

18 serve for a term equivalent to the duration of the Commis19 sion.

20 (4) The Secretary shall designate a member of the

21 Commission to serve as Chair of the Commission for a

22 term equivalent to the duration of the Commission.

23 (c) ADMINISTRATIVE PROVISIONS.—(1) Service as a

24 member of the Commission by an individual who is not

25 otherwise a Federal employee shall not be considered serv-
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1 ice in an appointive or elective position in the Federal Gov2 ernment for the purposes of title 5, United States Code.

3 (2) Each member of the Commission who is not a

4 full-time Federal employee shall be paid compensation at

5 a rate equal to the daily equivalent of the rate of basic

6 pay in effect for Level IV of the Executive Schedule for

7 each day (including travel time) the member attends meet8 ings or otherwise performs the duties of the Commission.

9 (3) While away from their homes or regular places

10 of business on the business of the Commission, each mem11 ber who is not a full-time Federal employee may be al12 lowed travel expenses, including per diem in lieu of sub13 sistence, as authorized by section 5703 of title 5, United

14 States Code, for persons employed intermittently in the

15 Government service.

16 (d) ASSISTANCE TO COMMISSION.—The Commission

17 may engage individuals skilled in medical and other as18 pects of childhood disability to provide such technical as19 sistance as may be necessary to carry out the functions

20 of the Commission. The Secretary shall make available to

21 the Commission such secretarial, clerical, and other assist22 ance as the Commission may require to carry out the func23 tions of the Commission.

24 (e) STUDY BY THE COMMISSION.—(1) The Commis25 sion shall conduct a study, in consultation with the Na-
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1 tional Academy of Sciences, of the effects of the definition

2 of ‘‘disability’’ under title XVI of the Social Security Act

3 (42 U.S.C. 1382 et seq.) in effect on the date of enactment

4 of this Act, as such definition applies to determining

5 whether a child under the age of 18 is eligible to receive

6 benefits under such title, the appropriateness of such defi7 nition, and the advantages and disadvantages of using any

8 alternative definition of disability in determining whether

9 a child under age 18 is eligible to receive benefits under

10 such title.

11 (2) The study described in paragraph (1) shall in12 clude issues of—

13 (A) whether the need by families for assistance

14 in meeting high costs of medical care for children

15 with serious physical or mental impairments, wheth16 er or not they are eligible for disability benefits

17 under title XVI of the Social Security Act, might ap18 propriately be met through expansion of Federal

19 health assistance programs (including the program

20 of medical assistance under title XIX of such Act);

21 (B) the feasibility of providing benefits to chil22 dren through noncash means, including but not lim23 ited to vouchers, debit cards, and electronic benefit

24 transfer systems;
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1 (C) the extent to which the Social Security Ad2 ministration can involve private organizations in an

3 effort to increase the provision of social services,

4 education, and vocational instruction with the aim of

5 promoting independence and the ability to engage in

6 substantial gainful activity;

7 (D) the feasibility of providing retroactive sup8 plemental security income benefits pursuant to the

9 decision in Sullivan v. Zebley, 110 S. Ct. 2658

10 (1990), on a prorated basis or by means of a

11 packaged trust;

12 (E) methods to increase the extent to which

13 benefits are used in the effort to assist the child

14 achieve independence and engage in substantial

15 gainful activity; and

16 (F) such other issues that the Secretary deter17 mines to be appropriate.

18 (f) REPORT.—Not later than November 30, 1995, the

19 Commission shall prepare a report and submit such report

20 to the Committee on Ways and Means of the House of

21 Representatives and the Committee on Finance of the

22 Senate which shall summarize the results of the study de23 scribed in subsection (e) and include any recommendations

24 that the Commission determines to be appropriate.
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1 SEC. 224. DISREGARD DEEMED INCOME AND RESOURCES

2 OF INELIGIBLE SPOUSE IN DETERMINING

3 CONTINUED ELIGIBILITY UNDER SECTION

4 1619(b).

5 (a) IN GENERAL.—Section 1619(b)(2) of the Social

6 Security Act (42 U.S.C. 1382h(b)(2)) is amended by add7 ing at the end the following:

8 ‘‘(C)(i)(I) For purposes of paragraph (1), in deter9 mining the earnings of an individual whose spouse is not

10 an eligible individual, there shall be disregarded the net

11 income of the spouse to the extent such net income does

12 not exceed an amount equal to twice the threshold amount

13 determined for the individual.

14 ‘‘(II) As used in subclause (I), the term ‘threshold

15 amount’ means, with respect to an individual—

16 ‘‘(aa) $85, plus twice the amount of benefits

17 payable under this title (including federally adminis18 tered State supplementary payments) to an individ19 ual who is living in his or her own household and

20 who has no other income, plus the average amount

21 expended per individual, under the State plan ap22 proved under title XIX by the State in which the in23 dividual resides, on individuals who are recipients of

24 benefits under this title by reason of disability; or

25 ‘‘(bb) if the gross earnings of the individual ex26 ceeds the amount described in item (aa), the amount
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1 that would be sufficient to allow the individual to

2 provide for himself or herself a reasonable equivalent

3 of benefits and services described in paragraph

4 (1)(D).

5 ‘‘(ii) For purposes of paragraph (1)(A), in determin6 ing the resources of an individual whose spouse is not an

7 eligible individual, there shall be disregarded the resources

8 of the spouse to the extent the amount of such resources

9 does not exceed the community spouse resource allowance

10 (as defined in section 1924(f)(2)) of the State in which

11 the individual resides.’’.

12 (b) EFFECTIVE DATE.—The amendment made by

13 subsection (a) shall take effect on October 1, 1995.

14 SEC. 225. PLANS FOR ACHIEVING SELF-SUPPORT NOT DIS15 APPROVED WITHIN 60 DAYS TO BE DEEMED

16 APPROVED.

17 (a) AMENDMENTS TO INCOME EXCLUSION RULES.—

18 Section 1612(b)(4) of the Social Security Act (42 U.S.C.

19 1382a(b)(4)(A)) is amended in each of subparagraphs (A)

20 and (B) by inserting ‘‘and, for purposes of this clause,

21 a completed plan for achieving self-support which is not

22 disapproved by the Board within 60 days after the date

23 of submission shall be deemed to be approved by the

24 Board until subsequently disapproved by the Board (with

25 appropriate notification to the individual),’’ after ‘‘plan,’’.
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1 (b) AMENDMENT TO RESOURCE EXCLUSION

2 RULE.—Section 1613(a)(4) of such Act (42 U.S.C.

3 1382b(a)(4)) is amended by inserting ‘‘, and, for purposes

4 of this paragraph, a completed plan for achieving self-sup5 port which is not disapproved by the Board within 60 days

6 after the date of submission shall be deemed to be ap7 proved by the Board until 6 months after subsequently

8 disapproved by the Board (with appropriate notification

9 to the individual)’’ after ‘‘such plan’’.

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

11 this section shall take effect on January 1, 1995.

12 SEC. 226. TEMPORARY AUTHORITY TO APPROVE A LIMITED

13 NUMBER OF PLANS FOR ACHIEVING SELF14 SUPPORT THAT INCLUDE HOUSING GOALS.

15 (a) IN GENERAL.—During the 42-month period that

16 begins on January 1, 1995, the Board may, under title

17 XVI of the Social Security Act, approve not more than

18 20 percent of the plans for achieving self-support that in19 clude a housing goal.

20 (b) REPORT.—Within 12 months after the end of the

21 5-year period that begins on January 1, 1995, the Board

22 shall submit to the Congress a report on the activities

23 under subsection (a).
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1 SEC. 227. REGULATIONS REGARDING COMPLETION OF

2 PLANS FOR ACHIEVING SELF-SUPPORT.

3 (a) IN GENERAL.—Section 1633 of the Social Secu4 rity Act (42 U.S.C. 1383b) is amended by adding at the

5 end the following:

6 ‘‘(d) The Board shall establish by regulation time

7 limits and other criteria related to individuals’ plans for

8 achieving self-support, that take into account the difficulty

9 of achieving self-support based on the needs of individuals

10 and the goals of the plan.’’.

11 (b) EFFECTIVE DATE.—The amendment made by

12 subsection (a) shall take effect on January 1, 1995.

13 SEC. 228. TREATMENT OF CERTAIN GRANT, SCHOLARSHIP,

14 OR FELLOWSHIP INCOME AS EARNED IN15 COME FOR SSI PURPOSES.

16 (a) IN GENERAL.—Section 1612(a)(1) of the Social

17 Security Act (42 U.S.C. 1382a(a)(1)) is amended—

18 (1) by striking ‘‘and’’ at the end of subpara19 graph (D); and

20 (2) by adding at the end the following:

21 ‘‘(F) any grant, scholarship, or fellow22 ship.’’.

23 (b) EFFECTIVE DATE.—The amendments made by

24 subsection (a) shall apply to eligibility and benefit deter25 minations for any month that begins after the 2nd month

26 after the month in which this Act is enacted.
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1 SEC. 229. SSI ELIGIBILITY FOR STUDENTS TEMPORARILY

2 ABROAD.

3 (a) IN GENERAL.—Section 1611(f) of the Social Se4 curity Act (42 U.S.C. 1382(f)) is amended—

5 (1) by inserting ‘‘(1)’’ after ‘‘(f)’’; and

6 (2) by adding after and below the end the fol7 lowing:

8 ‘‘(2) The first sentence of paragraph (1) shall not

9 apply to any individual who—

10 ‘‘(A) was eligible to receive a benefit under this

11 title for the month immediately preceding the first

12 month during all of which the individual was outside

13 the United States; and

14 ‘‘(B) demonstrates to the satisfaction of the

15 Board that the absence of the individual from the

16 United States is—

17 ‘‘(i) temporary; and

18 ‘‘(ii) for the purpose of conducting studies

19 as part of an educational program that is de20 signed to prepare the individual for gainful em21 ployment, and is sponsored by a school, college,

22 or university in the United States.’’.

23 (b) EFFECTIVE DATE.—The amendment made by

24 subsection (a) shall take effect on January 1, 1995.
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1 SEC. 230. DISREGARD OF COST-OF-LIVING INCREASES FOR

2 CONTINUED ELIGIBILITY FOR WORK INCEN3 TIVES.

4 (a) IN GENERAL.—Section 1619(b)(1)(B) of the So5 cial Security Act (42 U.S.C. 1382h(b)(1)(B)) is amended

6 by inserting ‘‘and increases pursuant to section 215(i) in

7 the level of monthly insurance benefits to which the indi8 vidual is entitled under title II that occur while such indi9 vidual is considered to be receiving supplemental security

10 income benefits by reason of this subsection’’ after ‘‘earn11 ings’’.

12 (b) EFFECTIVE DATE.—The amendment made by

13 subsection (a) shall apply to eligibility determinations for

14 months after December 1994.

15 SEC. 231. EXPANSION OF THE AUTHORITY OF THE SOCIAL

16 SECURITY ADMINISTRATION TO PREVENT,

17 DETECT, AND TERMINATE FRAUDULENT

18 CLAIMS FOR SSI BENEFITS.

19 (a) PREVENTION OF FRAUD IN THE SSI PROGRAM

20 BY TRANSLATORS OF FOREIGN LANGUAGES.—

21 (1) IN GENERAL.—Section 1631(e) of the So22 cial Security Act (42 U.S.C. 1383(e)) is amended by

23 inserting after paragraph (3) the following:

24 ‘‘(4) A translation into English by a third party of

25 a statement made in a foreign language by an applicant

26 for or recipient of benefits under this title shall not be
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1 regarded as reliable unless the third party, under penalty

2 of perjury—

3 ‘‘(A) certifies that the translation is accurate;

4 and

5 ‘‘(B) discloses the nature and scope of the rela6 tionship between the third party and the applicant

7 or recipient, as the case may be.’’.

8 (2) EFFECTIVE DATE.—The amendment made

9 by paragraph (1) shall take effect on October 1,

10 1994.

11 (b) CIVIL MONETARY PENALTIES, ASSESSMENTS,

12 AND EXCLUSIONS FOR TITLE XVI.—

13 (1) IN GENERAL.—Title XI of the Social Secu14 rity Act (42 U.S.C. 1301–1320b–14) is amended by

15 inserting after section 1128B the following:

16 ‘‘SEC. 1129. CIVIL MONETARY PENALTIES AND ASSESS17 MENTS FOR TITLE XVI.

18 ‘‘(a) Any person (including an organization, agency,

19 or other entity) who makes, or causes to be made, a state20 ment or representation of a material fact for use in deter21 mining any initial or continuing right to benefits or pay22 ments under title XVI that the person knows or should

23 know is false or misleading or knows or should know omits

24 a material fact shall be subject to, in addition to any other

25 penalties that may be prescribed by law, a civil money pen-
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1 alty of not more than $5,000 for each such statement or

2 representation. Such person also shall be subject to an as3 sessment, in lieu of damages sustained by the United

4 States because of such statement or representation, of not

5 more than twice the amount of benefits or payments paid

6 as a result of such a statement or representation. In addi7 tion, the Board may make a determination in the same

8 proceeding to exclude the person from participation in the

9 programs under title XVIII and to direct the appropriate

10 State agency to exclude the person from participation in

11 any State health care program.

12 ‘‘(b)(1) The Board may initiate a proceeding to deter13 mine whether to impose a civil money penalty, assessment,

14 or exclusion under subsection (a) only as authorized by

15 the Attorney General pursuant to procedures agreed upon

16 by the Board and the Attorney General. The Board may

17 not initiate an action under this section with respect to

18 any violation described in subsection (a) later than 6 years

19 after the date the violation was committed. The Board

20 may initiate an action under this section by serving notice

21 of the action in any manner authorized by Rule 4 of the

22 Federal Rules of Civil Procedure.

23 ‘‘(2) The Board shall not make a determination ad24 verse to any person under this section until the person

25 has been given written notice and an opportunity for the
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1 determination to be made on the record after a hearing

2 at which the person is entitled to be represented by coun3 sel, to present witnesses, and to cross-examine witnesses

4 against the person.

5 ‘‘(3) In a proceeding under this section which—

6 ‘‘(A) is against a person who has been convicted

7 (whether upon a verdict after trial or upon a plea of

8 guilty or nolo contendere) of a Federal crime charg9 ing fraud or false statements; and

10 ‘‘(B) involves the same transaction as in the

11 criminal action;

12 the person is estopped from denying the essential elements

13 of the criminal offense.

14 ‘‘(4) The official conducting a hearing under this sec15 tion may sanction a person, including any party or attor16 ney, for failing to comply with an order or procedure, fail17 ing to defend an action, or other misconduct as would

18 interfere with the speedy, orderly, or fair conduct of the

19 hearing. Such sanction shall reasonably relate to the sever20 ity and nature of the failure or misconduct. Such sanction

21 may include—

22 ‘‘(A) in the case of refusal to provide or permit

23 discovery, drawing negative factual inference or

24 treating such refusal as an admission by deeming

25 the matter, or certain facts, to be established;
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1 ‘‘(B) prohibiting a party from introducing cer2 tain evidence or otherwise supporting a particular

3 claim or defense;

4 ‘‘(C) striking pleadings, in whole or in part;

5 ‘‘(D) staying the proceedings;

6 ‘‘(E) dismissal of the action;

7 ‘‘(F) entering a default judgment;

8 ‘‘(G) ordering the party or attorney to pay at9 torneys’ fees and other costs caused by the failure

10 or misconduct; and

11 ‘‘(H) refusing to consider any motion or other

12 action which is not filed in a timely manner.

13 ‘‘(c) In determining the amount or scope of any pen14 alty, assessment, or exclusion imposed pursuant to this

15 section, the Board shall take into account—

16 ‘‘(1) the nature of the statements and represen17 tations referred to in subsection (a) and the cir18 cumstances under which they occurred;

19 ‘‘(2) the degree of culpability, history of prior

20 offenses, and financial condition of the person com21 mitting the offense; and

22 ‘‘(3) such other matters as justice may require.

23 ‘‘(d)(1) Any person adversely affected by a deter24 mination of the Board under this section may obtain a

25 review of such determination in the United States Court
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1 of Appeals for the circuit in which the person resides, or

2 in which the statement or representation referred to in

3 subsection (a) was made, by filing in such court (within

4 60 days following the date the person is notified of the

5 Board’s determination) a written petition requesting that

6 the determination be modified or set aside. A copy of the

7 petition shall be forthwith transmitted by the clerk of the

8 court to the Board, and thereupon the Board shall file

9 in the court the record in the proceeding as provided in

10 section 2112 of title 28, United States Code. Upon such

11 filing, the court shall have jurisdiction of the proceeding

12 and of the question determined therein, and shall have the

13 power to make and enter upon the pleadings, testimony,

14 and proceedings set forth in such record a decree affirm15 ing, modifying, remanding for further consideration, or

16 setting aside, in whole or in part, the determination of

17 the Board and enforcing the same to the extent that such

18 order is affirmed or modified. No objection that has not

19 been urged before the Board shall be considered by the

20 court, unless the failure or neglect to urge such objection

21 shall be excused because of extraordinary circumstances.

22 ‘‘(2) The findings of the Board with respect to ques23 tions of fact, if supported by substantial evidence on the

24 record considered as a whole, shall be conclusive in the

25 review described in paragraph (1). If any party shall apply
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1 to the court for leave to adduce additional evidence and

2 shall show to the satisfaction of the court that such addi3 tional evidence is material and that there were reasonable

4 grounds for the failure to adduce such evidence in the

5 hearing before the Board, the court may order such addi6 tional evidence to be taken before the Board and to be

7 made a part of the record. The Board may modify its find8 ings as to the facts, or make new findings, by reason of

9 additional evidence so taken and filed, and the Board shall

10 file with the court such modified or new findings, which

11 findings with respect to questions of fact, if supported by

12 substantial evidence on the record considered as a whole

13 shall be conclusive, and his recommendations, if any, for

14 the modification or setting aside of his original order.

15 ‘‘(3) Upon the filing of the record with the Board’s

16 original or modified order, the jurisdiction of the court

17 shall be exclusive and its judgment and decree shall be

18 final, except that the same shall be subject to review by

19 the Supreme Court of the United States, as provided in

20 section 1254 of title 28, United States Code.

21 ‘‘(e)(1) Civil money penalties and assessments im22 posed under this section may be compromised by the

23 Board and may be recovered—

24 ‘‘(A) in a civil action in the name of the United

25 States brought in United States district court for
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1 the district where the statement or representation

2 referred to in subsection (a) was made, or where the

3 person resides, as determined by the Board;

4 ‘‘(B) by means of reduction in tax refunds to

5 which the person is entitled, based on notice to the

6 Secretary of the Treasury as permitted under sec7 tion 3720A of title 31, United States Code;

8 ‘‘(C) by decrease of any payment under title

9 XVI to which the person is entitled, notwithstanding

10 section 207 of this Act, as made applicable to this

11 title by reason of section 1631(d)(1);

12 ‘‘(D) by authorities provided under the Debt

13 Collection Act of 1982, as amended, to the extent

14 applicable to debts arising under the Social Security

15 Act;

16 ‘‘(E) by deduction of the amount of such pen17 alty or assessment, when finally determined, or the

18 amount agreed upon in compromise, from any sum

19 then or later owing by the United States to the per20 son against whom the penalty or assessment has

21 been assessed; or

22 ‘‘(F) by any combination of the foregoing.

23 ‘‘(f) A determination by the Board to impose a pen24 alty, assessment, or exclusion under this section shall be

25 final upon the expiration of the 60-day period referred to
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1 in subsection (d). Matters that were raised or that could

2 have been raised in a hearing before the Board or in an

3 appeal pursuant to subsection (d) may not be raised as

4 a defense to a civil action by the United States to collect

5 a penalty and assessment imposed under this section.

6 ‘‘(g) Whenever the Board’s determination to impose

7 a penalty, assessment, or exclusion under this section with

8 respect to a medical provider or physician becomes final,

9 the provisions of section 1128A(h) shall apply.

10 ‘‘(h) Whenever the Board has reason to believe that

11 any person has engaged, is engaging, or is about to engage

12 in any activity which makes the person subject to a civil

13 monetary penalty under this section, the Board may bring

14 an action in an appropriate district court of the United

15 States (or, if applicable, a United States court of any ter16 ritory) to enjoin such activity, or to enjoin the person from

17 concealing, removing, encumbering, or disposing of assets

18 which may be required in order to pay a civil monetary

19 penalty and assessment if any such penalty were to be im20 posed or to seek other appropriate relief.

21 ‘‘(i)(1) The provisions of subsections (d) and (e) of

22 section 205 shall apply with respect to this section to the

23 same extent as they are applicable with respect to title

24 II. The Board may delegate the authority granted by sec25 tion 205(d) (as made applicable to this section) to the In-
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1 spector General of the Department of Health and Human

2 Services for purposes of any investigation under this sec3 tion.

4 ‘‘(2) The Board may delegate authority granted

5 under this section to the Inspector General of the Social

6 Security Administration.

7 ‘‘(j) For purposes of this section, the term ‘State

8 agency’ shall have the same meaning as in section

9 1128A(i)(1).

10 ‘‘(k) A principal is liable for penalties, assessments,

11 and exclusions under this section for the actions of the

12 principal’s agent acting within the scope of the agency.’’.

13 (2) CONFORMING AMENDMENTS.—Section 1128

14 of such Act (42 U.S.C. 1320a–7) is amended—

15 (A) in subsection (b)(7), by striking ‘‘or

16 section 1128B’’ and inserting ‘‘, section 1128B,

17 or section 1129’’;

18 (B) in subsection (b)(8)(B)(ii), by insert19 ing ‘‘and section 1129’’ after ‘‘section 1128A’’;

20 (C) in subsection (c)(1), by striking ‘‘or

21 under section 1128A’’ and inserting ‘‘, section

22 1128A, or section 1129’’;

23 (D) in subsection (c)(3)(A), by inserting

24 ‘‘or section 1129’’ after ‘‘section 1128A’’;
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1 (E) in subsection (d)(1), by striking ‘‘and

2 section 1128A’’ and inserting ‘‘, section 1128A,

3 and section 1129’’;

4 (F) in subsection (d)(2)(A), by striking ‘‘or

5 section 1128A’’ and inserting ‘‘, section 1128A,

6 or section 1129’’;

7 (G) in subsection (e)(1), by striking ‘‘or

8 section 1128A’’ and inserting ‘‘, section 1128A,

9 or section 1129’’;

10 (H) in subsection (f)(3), by inserting ‘‘,

11 1129,’’ after ‘‘sections 1128A’’;

12 (I) in subsection (g)(1), by striking ‘‘or

13 section 1128A’’ each place such term appears

14 and inserting ‘‘, section 1128A, or section

15 1129’’;

16 (J) in subsection (g)(2)(A), by inserting

17 ‘‘and section 1129(a)’’ after ‘‘section

18 1128A(a)’’; and

19 (K) in subsection (h), by striking ‘‘1128A

20 and 1128B’’ and inserting ‘‘1128A, 1128B, and

21 1129’’.

22 (c) SSI FRAUD CONSIDERED A FELONY.—

23 (1) IN GENERAL.—Section 1632(a) of the So24 cial Security Act (42 U.S.C. 1383a(a)) is amended

25 by striking ‘‘shall’’ the 1st place such term appears
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1 and all that follows and inserting ‘‘shall be fined

2 under title 18, United States Code, imprisoned not

3 more than 5 years, or both.’’.

4 (2) CONFORMING AMENDMENT.—Section

5 1632(b) of such Act (42 U.S.C. 1383a(b)) is amend6 ed to read as follows:

7 ‘‘(b)(1) If a person or entity violates subsection (a)

8 in the person’s or entity’s role as, or in applying to be9 come, a payee under section 1631(a)(2) on behalf of an10 other individual (other than the person’s eligible spouse),

11 and the violation includes a willful misuse of funds by the

12 person or entity, the court may also require that full or

13 partial restitution of funds be made to such other individ14 ual.

15 ‘‘(2) Any person or entity convicted of a violation of

16 subsection (a) of this section or of section 208 may not

17 be certified as a payee under section 1631(a)(2).’’.

18 (d) AUTHORITY TO REDETERMINE ELIGIBILITY IN

19 DISABILITY CASES IF FRAUD IS INVOLVED, AND TO TER20 MINATE BENEFITS IF THERE IS INSUFFICIENT RELIABLE

21 EVIDENCE OF DISABILITY.—

22 (1) IN GENERAL.—Section 1631(e) of the So23 cial Security Act (42 U.S.C. 1383(e)) is amended by

24 adding at the end the following:
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1 ‘‘(6)(A) The Board shall immediately redetermine the

2 eligibility of an individual for benefits under this title by

3 reason of disability, disregarding any unreliable evidence

4 of disability, if there is reason to believe that fraud was

5 involved in the application of the individual for such bene6 fits, unless a United States attorney, or equivalent State

7 prosecutor, with jurisdiction over potential or actual relat8 ed criminal cases, certifies, in writing, that there is a sub9 stantial risk that redetermining such eligibility would jeop10 ardize the criminal prosecution of any person who is a sub11 ject of the investigation from which the information is de12 rived.

13 ‘‘(B) If, after redetermining the eligibility of an indi14 vidual for benefits under this title by reason of disability,

15 the Board determines that there is insufficient reliable evi16 dence of disability, the Board may terminate such eligi17 bility.’’.

18 (2) EFFECTIVE DATE.—The amendment made

19 by paragraph (1) shall take effect on October 1,

20 1994, and shall apply to eligibility determinations

21 made before, on, or after such date.

22 (e) AVAILABILITY OF RECIPIENT IDENTIFYING IN23 FORMATION FROM THE INSPECTOR GENERAL, SOCIAL

24 SECURITY ADMINISTRATION.—
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1 (1) IN GENERAL.—Section 1631(e) of the So2 cial Security Act (42 U.S.C. 1383(e)), as amended

3 by subsection (d) of this section, is amended by add4 ing at the end the following:

5 ‘‘(7) As soon as the Inspector General, Social Secu6 rity Administration, has reason to believe that fraud was

7 involved in the application of a recipient for benefits under

8 this title, the Inspector General shall make available to

9 the Board information identifying the recipient, unless a

10 United States attorney, or equivalent State prosecutor,

11 with jurisdiction over potential or actual related criminal

12 cases, certifies, in writing, that there is a substantial risk

13 that making the information so available or redetermining

14 the eligibility of the recipient for such benefits would jeop15 ardize the criminal prosecution of any person who is a sub16 ject of the investigation from which the information is de17 rived.’’.

18 (2) EFFECTIVE DATE.—The amendment made

19 by paragraph (1) shall take effect on October 1,

20 1994.

21 (f) AUTHORITY TO USE AVAILABLE PREADMISSION

22 IMMIGRANT AND REFUGEE MEDICAL INFORMATION.—

23 (1) IN GENERAL.—Section 1631(e) of the So24 cial Security Act (42 U.S.C. 1383(e)), as amended
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1 by the preceding provisions of this Act, is amended

2 by adding at the end the following:

3 ‘‘(8) The Board shall request the Immigration and

4 Naturalization Service and the Centers for Disease Con5 trol to provide the Board with whatever medical informa6 tion either such entity has with respect to any alien who

7 has applied for benefits under this title to the extent that

8 the information is relevant to any determination relating

9 to such eligibility.’’.

10 (2) EFFECTIVE DATE.—The amendment made

11 by paragraph (1) shall take effect on October 1,

12 1994.

13 (g) ANNUAL REPORTS ON REVIEWS OF SSI CASES.—

14 The Board shall annually submit to the Committee on

15 Ways and Means of the House of Representatives and the

16 Committee on Finance of the Senate a report on the ex17 tent to which the Board has exercised its authority to re18 view supplemental security income cases under title XVI

19 of the Social Security Act, and the extent to which the

20 cases reviewed were those that involved a high likelihood

21 or probability of fraud.
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1 SEC. 232. DISABILITY REVIEW REQUIRED FOR SSI RECIPI2 ENTS WHO ARE 18 YEARS OF AGE.

3 (a) IN GENERAL.—Section 1614(a)(3)(G) of the So4 cial Security Act (42 U.S.C. 1382c(a)(3)(G)) is amend5 ed—

6 (1) by inserting ‘‘(i)’’ after ‘‘(G)’’; and

7 (2) by adding after and below the end the fol8 lowing:

9 ‘‘(ii)(I) During the 1-year period that begins on the

10 date a recipient of benefits under this title by reason of

11 disability attains 18 years of age, the applicable State

12 agency or the Board (as may be appropriate) shall redeter13 mine the eligibility of the recipient for such benefits by

14 reason of disability, by applying the criteria used in deter15 mining eligibility for such benefits of applicants who have

16 attained 18 years of age.

17 ‘‘(II) A review under subclause (I) of this clause shall

18 be considered a substitute for a review required under

19 clause (i).’’.

20 (b) EFFECTIVE DATE.—The amendments made by

21 subsection (a) shall apply to individuals who attain 18

22 years of age in or after the 9th month after the month

23 in which this Act is enacted.
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1 SEC. 233. CONTINUING DISABILITY REVIEWS.

2 (a) IN GENERAL.—Section 1614(a)(3)(G) of such

3 Act (42 U.S.C. 1382c(a)(3)(G)) is amended by inserting

4 ‘‘221(i),’’ after ‘‘221(h),’’.

5 (b) EFFECTIVE DATE.—The amendment made by

6 subsection (A) shall take effect on October 1, 1995.

7 SEC. 234. TECHNICAL AND CLERICAL AMENDMENTS.

8 (a) AMENDMENTS TO TITLE II OF THE SOCIAL SE9 CURITY ACT.—

10 (1) Section 201(a) of the Social Security Act

11 (42 U.S.C. 401(a)) is amended, in the matter follow12 ing clause (4), by striking ‘‘and and’’ and inserting

13 ‘‘and’’.

14 (2) Section 202(d)(8)(D)(ii) of such Act (42

15 U.S.C. 402(d)(8)(D)(ii)) is amended by adding a pe16 riod at the end and by adjusting the left hand

17 margination thereof so as to align with section

18 202(d)(8)(D)(i) of such Act.

19 (3) Section 202(q)(1)(A) of such Act (42

20 U.S.C. 402(q)(1)(A)) is amended by striking the

21 dash at the end.

22 (4) Section 202(q)(9) of such Act (42 U.S.C.

23 402(q)(9)) is amended, in the matter preceding sub24 paragraph (A), by striking ‘‘parargaph’’ and insert25 ing ‘‘paragraph’’.
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1 (5) Section 202(t)(4)(D) of such Act (42

2 U.S.C. 402(t)(4)(D)) is amended by inserting ‘‘if

3 the’’ before ‘‘Secretary’’ the second and third places

4 it appears.

5 (6) Clauses (i) and (ii) of section 203(f)(5)(C)

6 of such Act (42 U.S.C. 403(f)(5)(C)) are amended

7 by adjusting the left-hand margination thereof so as

8 to align with clauses (i) and (ii) of section

9 203(f)(5)(B) of such Act.

10 (7) Paragraph (3)(A) and paragraph (3)(B) of

11 section 205(b) of such Act (42 U.S.C. 405(b)) are

12 amended by adjusting the left-hand margination

13 thereof so as to align with the matter following

14 section 205(b)(2)(C) of such Act.

15 (8) Section 205(c)(2)(B)(iii) of such Act (42

16 U.S.C. 405(c)(2)(B)(iii)) is amended by striking

17 ‘‘non-public’’ and inserting ‘‘nonpublic’’.

18 (9) Section 205(c)(2)(C) of such Act (42 U.S.C.

19 405(c)(2)(C)) is amended—

20 (A) by striking the clause (vii) added by

21 section 2201(c) of Public Law 101–624;

22 (B) by redesignating the clause (iii) added

23 by section 2201(b)(3) of Public Law 101–624,

24 clause (iv), clause (v), clause (vi), and the

25 clause (vii) added by section 1735(b) of Public
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1 Law 101–624 as clause (iv), clause (v), clause

2 (vi), clause (vii), and clause (viii), respectively;

3 (C) in clause (v) (as redesignated), by

4 striking ‘‘subclause (I) of’’, and by striking

5 ‘‘subclause (II) of clause (i)’’ and inserting

6 ‘‘clause (ii)’’; and

7 (D) in clause (viii)(IV) (as redesignated),

8 by inserting ‘‘a social security account number

9 or’’ before ‘‘a request for’’.

10 (10) The heading for section 205(j) of such Act

11 (42 U.S.C. 405(j)) is amended to read as follows:

12 ‘‘Representative Payees’’.

13 (11) The heading for section 205(s) of such Act

14 (42 U.S.C. 405(s)) is amended to read as follows:

15 ‘‘Notice Requirements’’.

16 (12) Section 208(c) of such Act (42 U.S.C.

17 408(c)) is amended by striking ‘‘subsection (g)’’ and

18 inserting ‘‘subsection (a)(7)’’.

19 (13) Section 210(a)(5)(B)(i)(V) of such Act (42

20 U.S.C. 410(a)(5)(B)(i)(V)) is amended by striking

21 ‘‘section 105(e)(2)’’ and inserting ‘‘section

22 104(e)(2)’’.

23 (14) Section 211(a) of such Act (42 U.S.C.

24 411(a)) is amended—
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1 (A) in paragraph (13), by striking ‘‘and’’

2 at the end; and

3 (B) in paragraph (14), by striking the pe4 riod and inserting ‘‘; and’’.

5 (15) Section 213(c) of such Act (42 U.S.C.

6 413(c)) is amended by striking ‘‘section’’ the first

7 place it appears and inserting ‘‘sections’’.

8 (16) Section 215(a)(5)(B)(i) of such Act (42

9 U.S.C. 415(a)(5)(B)(i)) is amended by striking

10 ‘‘subsection’’ the second place it appears and insert11 ing ‘‘subsections’’.

12 (17) Section 215(f)(7) of such Act (42 U.S.C.

13 415(f)(7)) is amended by inserting a period after

14 ‘‘1990’’.

15 (18) Subparagraph (F) of section 218(c)(6) of

16 such Act (42 U.S.C. 418(c)(6)) is amended by ad17 justing the left-hand margination thereof so as to

18 align with section 218(c)(6)(E) of such Act.

19 (19) Section 223(i) of such Act (42 U.S.C.

20 423(i)) is amended by adding at the beginning the

21 following heading:

22 ‘‘Limitation on Payments to Prisoners’’.

23 (b) RELATED AMENDMENTS.—

24 (1) Section 603(b)(5)(A) of Public Law 101–

25 649 (amending section 202(n)(1) of the Social Secu-
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1 rity Act) (104 Stat. 5085) is amended by inserting

2 ‘‘under’’ before ‘‘paragraph (1),’’ and by striking

3 ‘‘(17), or (18)’’ and inserting ‘‘(17), (18), or (19)’’,

4 effective as if this paragraph were included in such

5 section 603(b)(5)(A).

6 (2) Section 10208(b)(1) of Public Law 101–

7 239 (amending section 230(b)(2)(A) of the Social

8 Security Act) (103 Stat. 2477) is amended by strik9 ing ‘‘230(b)(2)(A)’’ and ‘‘430(b)(2)(A)’’ and insert10 ing ‘‘230(b)(2)’’ and ‘‘430(b)(2)’’, respectively, effec11 tive as if this paragraph were included in such sec12 tion 10208(b)(1).

13 (c) CONFORMING, CLERICAL AMENDMENTS UPDAT14 ING, WITHOUT SUBSTANTIVE CHANGE, REFERENCES IN

15 TITLE II OF THE SOCIAL SECURITY ACT TO THE INTER16 NAL REVENUE CODE.—

17 (1)(A)(i) Section 201(g)(1) of such Act (42

18 U.S.C. 401(g)(1)) is amended—

19 (I) in subparagraph (A)(i), by striking

20 ‘‘and subchapter E’’ and all that follows

21 through ‘‘1954’’ and inserting ‘‘and chapters 2

22 and 21 of the Internal Revenue Code of 1986’’;

23 (II) in subparagraph (A)(ii), by striking

24 ‘‘1954’’ and inserting ‘‘1986’’;
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1 (III) in the matter in subparagraph (A)

2 following clause (ii), by striking ‘‘subchapter E’’

3 and all that follows through ‘‘1954.’’ and in4 serting ‘‘chapters 2 and 21 of the Internal Rev5 enue Code of 1986.’’, and by striking ‘‘1954

6 other’’ and inserting ‘‘1986 other’’; and

7 (IV) in subparagraph (B), by striking

8 ‘‘1954’’ each place it appears and inserting

9 ‘‘1986’’.

10 (ii) The amendments made by clause (i) shall

11 apply only with respect to periods beginning on or

12 after the date of the enactment of this Act.

13 (B)(i) Section 201(g)(2) of such Act (42 U.S.C.

14 401(g)(2)) is amended by striking ‘‘section 3101(a)’’

15 and all that follows through ‘‘1950.’’ and inserting

16 ‘‘section 3101(a) of the Internal Revenue Code of

17 1986 which are subject to refund under section

18 6413(c) of such Code with respect to wages (as de19 fined in section 3121 of such Code).’’, and by strik20 ing ‘‘wages reported’’ and all that follows through

21 ‘‘1954,’’ and inserting ‘‘wages reported to the Sec22 retary of the Treasury or his delegate pursuant to

23 subtitle F of such Code,’’.
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1 (ii) The amendments made by clause (i) shall

2 apply only with respect to wages paid on or after

3 January 1, 1995.

4 (C) Section 201(g)(4) of such Act (42 U.S.C.

5 401(g)(4)) is amended—

6 (i) by striking ‘‘The Board of Trustees

7 shall prescribe before January 1, 1981, the

8 method’’ and inserting ‘‘If at any time or times

9 the Boards of Trustees of such Trust Funds

10 deem such action advisable, they may modify

11 the method prescribed by such Boards’’;

12 (ii) by striking ‘‘1954’’ and inserting

13 ‘‘1986’’; and

14 (iii) by striking the last sentence.

15 (2) Section 202(v) of such Act (42 U.S.C.

16 402(v)) is amended—

17 (A) in paragraph (1), by striking ‘‘1954’’

18 and inserting ‘‘1986’’; and

19 (B) in paragraph (3)(A), by inserting ‘‘of

20 the Internal Revenue Code of 1986’’ after

21 ‘‘3127’’.

22 (3) Section 205(c)(5)(F)(i) of such Act (42

23 U.S.C. 405(c)(5)(F)(i)) is amended by inserting ‘‘or

24 the Internal Revenue Code of 1986’’ after ‘‘1954’’.
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1 (4)(A) Section 209(a)(4)(A) of such Act (42

2 U.S.C. 409(a)(4)(A)) is amended by inserting ‘‘or

3 the Internal Revenue Code of 1986’’ after ‘‘Internal

4 Revenue Code of 1954’’.

5 (B) Section 209(a) of such Act (42 U.S.C.

6 409(a)) is amended—

7 (i) in subparagraphs (C) and (E) of para8 graph (4),

9 (ii) in paragraph (5)(A),

10 (iii) in subparagraphs (A) and (B) of para11 graph (14),

12 (iv) in paragraph (15),

13 (v) in paragraph (16), and

14 (vi) in paragraph (17),

15 by striking ‘‘1954’’ each place it appears and insert16 ing ‘‘1986’’.

17 (C) Subsections (b), (f), (g), (i)(1), and (j) of

18 section 209 of such Act (42 U.S.C. 409) are amend19 ed by striking ‘‘1954’’ each place it appears and

20 inserting ‘‘1986’’.

21 (5) Section 211(a)(15) of such Act (42 U.S.C.

22 411(a)(15)) is amended by inserting ‘‘of the Internal

23 Revenue Code of 1986’’ after ‘‘section 162(m)’’.

24 (6) Title II of such Act is further amended—
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1 (A) in subsections (f)(5)(B)(ii) and (k) of

2 section 203 (42 U.S.C. 403),

3 (B) in section 205(c)(1)(D)(i) (42 U.S.C.

4 405(c)(1)(D)(i)),

5 (C) in the matter in section 210(a) (42

6 U.S.C. 410(a)) preceding paragraph (1) and in

7 paragraphs (8), (9), and (10) of section 210(a),

8 (D) in subsections (p)(4) and (q) of section

9 210 (42 U.S.C. 410),

10 (E) in the matter in section 211(a) (42

11 U.S.C. 411(a)) preceding paragraph (1) and in

12 paragraphs (3), (4), (6), (10), (11), and (12)

13 and clauses (iii) and (iv) of section 211(a),

14 (F) in the matter in section 211(c) (42

15 U.S.C. 411(c)) preceding paragraph (1), in

16 paragraphs (3) and (6) of section 211(c), and

17 in the matter following paragraph (6) of section

18 211(c),

19 (G) in subsections (d), (e), and (h)(1)(B)

20 of section 211 (42 U.S.C. 411),

21 (H) in section 216(j) (42 U.S.C. 416(j)),

22 (I) in section 218(e)(3) (42 U.S.C.

23 418(e)(3)),

24 (J) in section 229(b) (42 U.S.C. 429(b)),
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1 (K) in section 230(c) (42 U.S.C. 430(c)),

2 and

3 (L) in section 232 (42 U.S.C. 432),

4 by striking ‘‘1954’’ each place it appears and insert5 ing ‘‘1986’’.

6 (d) RULES OF CONSTRUCTION.—

7 (1) The preceding provisions of this section

8 shall be construed only as technical and clerical cor9 rections and as reflecting the original intent of the

10 provisions amended thereby.

11 (2) Any reference in title II of the Social Secu12 rity Act to the Internal Revenue Code of 1986 shall

13 be construed to include a reference to the Internal

14 Revenue Code of 1954 to the extent necessary to

15 carry out the provisions of paragraph (1).

16 (e) UTILIZATION OF NATIONAL AVERAGE WAGE

17 INDEX FOR WAGE-BASED ADJUSTMENTS.—

18 (1) DEFINITION OF NATIONAL AVERAGE WAGE

19 INDEX.—Section 209(k) of the Social Security Act

20 (42 U.S.C. 409(k)) is amended—

21 (A) by redesignating paragraph (2) as

22 paragraph (3);

23 (B) in paragraph (3) (as redesignated), by

24 striking ‘‘paragraph (1)’’ and inserting ‘‘this

25 subsection’’; and
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1 (C) by striking paragraph (1) and insert2 ing the following new paragraphs:

3 ‘‘(k)(1) For purposes of sections 203(f)(8)(B)(ii),

4 213(d)(2)(B), 215(a)(1)(B)(ii), 215(a)(1)(C)(ii),

5 215(a)(1)(D), 215(b)(3)(A)(ii), 215(i)(1)(E),

6 215(i)(2)(C)(ii), 224(f)(2)(B), and 230(b)(2) (and

7 230(b)(2) as in effect immediately prior to the enactment

8 of the Social Security Amendments of 1977), the term ‘na9 tional average wage index’ for any particular calendar year

10 means, subject to regulations of the Secretary under para11 graph (2), the average of the total wages for such particu12 lar calendar year.

13 ‘‘(2) The Secretary shall prescribe regulations under

14 which the national average wage index for any calendar

15 year shall be computed—

16 ‘‘(A) on the basis of amounts reported to the

17 Secretary of the Treasury or his delegate for such

18 year,

19 ‘‘(B) by disregarding the limitation on wages

20 specified in subsection (a)(1),

21 ‘‘(C) with respect to calendar years after 1990,

22 by incorporating deferred compensation amounts

23 and factoring in for such years the rate of change

24 from year to year in such amounts, in a manner

25 consistent with the requirements of section 10208 of
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1 the Omnibus Budget Reconciliation Act of 1989,

2 and

3 ‘‘(D) with respect to calendar years before

4 1978, in a manner consistent with the manner in

5 which the average of the total wages for each of

6 such calendar years was determined as provided by

7 applicable law as in effect for such years.’’.

8 (2) CONFORMING AMENDMENTS.—

9 (A) Section 213(d)(2)(B) of such Act (42

10 U.S.C. 413(d)(2)(B)) is amended by striking

11 ‘‘deemed average total wages’’ and inserting

12 ‘‘national average wage index’’, and by striking

13 ‘‘the average of the total wages’’ and all that

14 follows and inserting ‘‘the national average

15 wage index (as so defined) for 1976,’’.

16 (B) Section 215(a)(1)(B)(ii) of such Act

17 (42 U.S.C. 415(a)(1)(B)(ii)) is amended—

18 (i) in subclause (I), by striking

19 ‘‘deemed average total wages’’ and insert20 ing ‘‘national average wage index’’; and

21 (ii) in subclause (II), by striking ‘‘the

22 average of the total wages’’ and all that

23 follows and inserting ‘‘the national average

24 wage index (as so defined) for 1977.’’.
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1 (C) Section 215(a)(1)(C)(ii) of such Act

2 (42 U.S.C. 415(a)(1)(C)(ii)) is amended by

3 striking ‘‘deemed average total wages’’ and

4 inserting ‘‘national average wage index’’.

5 (D) Section 215(a)(1)(D) of such Act (42

6 U.S.C. 415(a)(1)(D)) is amended—

7 (i) by striking ‘‘after 1978’’;

8 (ii) by striking ‘‘and the average of

9 the total wages (as described in subpara10 graph (B)(ii)(I))’’ and inserting ‘‘and the

11 national average wage index (as defined in

12 section 209(k)(1))’’; and

13 (iii) by striking the last sentence.

14 (E) Section 215(b)(3)(A)(ii) of such Act

15 (42 U.S.C. 415(b)(3)(A)(ii)) is amended by

16 striking ‘‘deemed average total wages’’ each

17 place it appears and inserting ‘‘national average

18 wage index’’.

19 (F) Section 215(i)(1) of such Act (42

20 U.S.C. 415(i)(1)) is amended—

21 (i) in subparagraph (E), by striking

22 ‘‘SSA average wage index’’ and inserting

23 ‘‘national average wage index (as defined

24 in section 209(k)(1))’’; and
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1 (ii) by striking subparagraph (G) and

2 redesignating subparagraph (H) as sub3 paragraph (G).

4 (G) Section 215(i)(2)(C)(ii) of such Act

5 (42 U.S.C. 415(i)(1)(C)(ii)) is amended to read

6 as follows:

7 ‘‘(ii) The Secretary shall determine and promulgate

8 the OASDI fund ratio for the current calendar year on

9 or before November 1 of the current calendar year, based

10 upon the most recent data then available. The Secretary

11 shall include a statement of the fund ratio and the na12 tional average wage index (as defined in section 209(k)(1))

13 and a statement of the effect such ratio and the level of

14 such index may have upon benefit increases under this

15 subsection in any notification made under clause (i) and

16 any determination published under subparagraph (D).’’.

17 (H) Section 224(f)(2) of such Act (42

18 U.S.C. 424a(f)(2)) is amended—

19 (i) in subparagraph (A), by adding

20 ‘‘and’’ at the end;

21 (ii) by striking subparagraph (C); and

22 (iii) by striking subparagraph (B) and

23 inserting the following:

24 ‘‘(B) the ratio of (i) the national average wage

25 index (as defined in section 209(k)(1)) for the cal-
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1 endar year before the year in which such redeter2 mination is made to (ii) the national average wage

3 index (as so defined) for the calendar year before

4 the year in which the reduction was first computed

5 (but not counting any reduction made in benefits for

6 a previous period of disability).’’.

7 (f) TECHNICAL CORRECTIONS RELATED TO OASDI

8 IN THE OMNIBUS BUDGET RECONCILIATION ACT OF

9 1990.—

10 (1) AMENDMENTS RELATED TO PROVISIONS IN

11 SECTION 5103(b) RELATING TO DISABLED WID12 OWS.—Section 223(f)(2) of the Social Security Act

13 (42 U.S.C. 423(f)(2)) is amended—

14 (A) in subparagraph (A), by striking ‘‘(in

15 a case to which clause (ii)(II) does not apply)’’;

16 and

17 (B) by striking subparagraph (B)(ii) and

18 inserting the following:

19 ‘‘(ii) the individual is now able to en20 gage in substantial gainful activity; or’’.

21 (2) AMENDMENTS RELATED TO PROVISIONS IN

22 SECTION 5105(d) RELATING TO REPRESENTATIVE

23 PAYEES.—

24 (A) TITLE II AMENDMENTS.—Section

25 5105(d)(1)(A) of the Omnibus Budget Rec-
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1 onciliation Act of 1990 (Public Law 101–508)

2 is amended—

3 (i) by striking ‘‘Section 205(j)(5)’’

4 and inserting ‘‘Section 205(j)(6)’’; and

5 (ii) by redesignating the paragraph

6 (5) as amended thereby as paragraph (6).

7 (B) TITLE XVI AMENDMENTS.—Section

8 1631(a)(2) of the Social Security Act (42

9 U.S.C. 1383(a)(2)) is amended—

10 (i) by redesignating subparagraphs

11 (E) and (F) as subparagraphs (F) and

12 (G), respectively; and

13 (ii) by inserting after subparagraph

14 (D) the following:

15 ‘‘(E) RESTITUTION.—In cases where the negligent

16 failure of the Secretary to investigate or monitor a rep17 resentative payee results in misuse of benefits by the rep18 resentative payee, the Secretary shall make payment to

19 the beneficiary or the beneficiary’s representative payee of

20 an amount equal to such misused benefits. The Secretary

21 shall make a good faith effort to obtain restitution from

22 the terminated representative payee.’’.

23 (3) AMENDMENTS RELATED TO PROVISIONS IN

24 SECTION 5106 RELATING TO COORDINATION OF

25 RULES UNDER TITLES II AND XVI GOVERNING FEES
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1 FOR REPRESENTATIVES OF CLAIMANTS WITH ENTI2 TLEMENTS UNDER BOTH TITLES.—

3 (A) CALCULATION OF FEE OF CLAIMANT’S

4 REPRESENTATIVE BASED ON AMOUNT OF PAST5 DUE SUPPLEMENTAL SECURITY INCOME BENE6 FITS AFTER APPLICATION OF WINDFALL OFF7 SET PROVISION.—Section 1631(d)(2)(A)(i) of

8 the Social Security Act (as amended by section

9 5106(a)(2) of the Omnibus Budget Reconcili10 ation Act of 1990) (42 U.S.C.

11 1383(d)(2)(A)(i)) is amended to read as fol12 lows:

13 ‘‘(i) by substituting, in subparagraphs (A)(ii)(I)

14 and (C)(i), the phrase ‘(as determined before any

15 applicable reduction under section 1631(g), and re16 duced by the amount of any reduction in benefits

17 under this title or title II made pursuant to section

18 1127(a))’ for the parenthetical phrase contained

19 therein; and’’.

20 (B) CALCULATION OF PAST-DUE BENEFITS

21 FOR PURPOSES OF DETERMINING ATTORNEY

22 FEES IN JUDICIAL PROCEEDINGS.—

23 (i) IN GENERAL.—Section 206(b)(1)

24 of such Act (42 U.S.C. 406(b)(1)) is

25 amended—
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1 (I) by inserting ‘‘(A)’’ after

2 ‘‘(b)(1)’’; and

3 (II) by adding at the end the fol4 lowing new subparagraph:

5 ‘‘(B) For purposes of this paragraph—

6 ‘‘(i) the term ‘past-due benefits’ excludes any

7 benefits with respect to which payment has been

8 continued pursuant to subsection (g) or (h) of sec9 tion 223, and

10 ‘‘(ii) amounts of past-due benefits shall be

11 taken into account to the extent provided under the

12 rules applicable in cases before the Secretary.’’.

13 (ii) PROTECTION FROM OFFSETTING

14 SSI BENEFITS.—The last sentence of sec15 tion 1127(a) of such Act (as added by sec16 tion 5106(b) of the Omnibus Budget Rec17 onciliation Act of 1990) (42 U.S.C.

18 1320a–6(a)) is amended by striking ‘‘sec19 tion 206(a)(4)’’ and inserting ‘‘subsection

20 (a)(4) or (b) of section 206’’.

21 (4) APPLICATION OF SINGLE DOLLAR AMOUNT

22 CEILING TO CONCURRENT CLAIMS UNDER TITLES II

23 AND XVI.—

24 (A) IN GENERAL.—Section 206(a)(2) of

25 such Act (as amended by section 5106(a)(1) of
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1 the Omnibus Budget Reconciliation Act of

2 1990) (42 U.S.C. 406(a)(2)) is amended—

3 (i) by redesignating subparagraph (C)

4 as subparagraph (D); and

5 (ii) by inserting after subparagraph

6 (B) the following new subparagraph:

7 ‘‘(C) In any case involving—

8 ‘‘(i) an agreement described in subparagraph

9 (A) with any person relating to both a claim of enti10 tlement to past-due benefits under this title and a

11 claim of entitlement to past-due benefits under title

12 XVI, and

13 ‘‘(ii) a favorable determination made by the

14 Secretary with respect to both such claims,

15 the Secretary may approve such agreement only if the

16 total fee or fees specified in such agreement does not ex17 ceed, in the aggregate, the dollar amount in effect under

18 subparagraph (A)(ii)(II).’’.

19 (B) CONFORMING AMENDMENT.—Section

20 206(a)(3)(A) of such Act (as amended by sec21 tion 5106(a)(1) of the Omnibus Budget Rec22 onciliation Act of 1990) (42 U.S.C.

23 406(a)(3)(A)) is amended by striking ‘‘para24 graph (2)(C)’’ and inserting ‘‘paragraph

25 (2)(D)’’.
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1 (5) EFFECTIVE DATE.—Each amendment made

2 by this section shall take effect as if included in the

3 provisions of the Omnibus Budget Reconciliation Act

4 of 1990 to which such amendment relates.

5 (g) ELIMINATION OF ROUNDING DISTORTION IN THE

6 CALCULATION OF THE OLD-AGE, SURVIVORS, AND DIS7 ABILITY INSURANCE CONTRIBUTION AND BENEFIT BASE

8 AND THE EARNINGS TEST EXEMPT AMOUNTS.—

9 (1) ADJUSTMENT OF OASDI CONTRIBUTION AND

10 BENEFIT BASE.—

11 (A) IN GENERAL.—Section 230(b) of the

12 Social Security Act (42 U.S.C. 430(b)) is

13 amended by striking paragraphs (1) and (2)

14 and inserting the following:

15 ‘‘(1) $60,600, and

16 ‘‘(2) the ratio of (A) the national average wage

17 index (as defined in section 209(k)(1)) for the cal18 endar year before the calendar year in which the de19 termination under subsection (a) is made to (B) the

20 national average wage index (as so defined) for

21 1992,’’.

22 (B) CONFORMING AMENDMENT RELATING

23 TO APPLICABLE PRIOR LAW.—Section 230(d) of

24 such Act (42 U.S.C. 430(d)) is amended by

25 striking ‘‘(except that’’ and all that follows
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1 through the end and inserting ‘‘(except that, for

2 purposes of subsection (b) of such section 230

3 as so in effect, the reference to the contribution

4 and benefit base in paragraph (1) of such sub5 section (b) shall be deemed a reference to an

6 amount equal to $45,000, each reference in

7 paragraph (2) of such subsection (b) to the av8 erage of the wages of all employees as reported

9 to the Secretary of the Treasury shall be

10 deemed a reference to the national average

11 wage index (as defined in section 209(k)(1)),

12 the reference to a preceding calendar year in

13 paragraph (2)(A) of such subsection (b) shall

14 be deemed a reference to the calendar year be15 fore the calendar year in which the determina16 tion under subsection (a) of such section 230 is

17 made, and the reference to a calendar year in

18 paragraph (2)(B) of such subsection (b) shall

19 be deemed a reference to 1992).’’.

20 (C) ADJUSTMENT OF CONTRIBUTION AND

21 BENEFIT BASE APPLICABLE IN DETERMINING

22 YEARS OF COVERAGE FOR PURPOSES OF SPE23 CIAL MINIMUM PRIMARY INSURANCE

24 AMOUNT.—Section 215(a)(1)(C)(ii) of such Act

25 is amended by striking ‘‘(except that’’ and all
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1 that follows through the end and inserting ‘‘(ex2 cept that, for purposes of subsection (b) of such

3 section 230 as so in effect, the reference to the

4 contribution and benefit base in paragraph (1)

5 of such subsection (b) shall be deemed a ref6 erence to an amount equal to $45,000, each

7 reference in paragraph (2) of such subsection

8 (b) to the average of the wages of all employees

9 as reported to the Secretary of the Treasury

10 shall be deemed a reference to the national av11 erage wage index (as defined in section

12 209(k)(1)), the reference to a preceding cal13 endar year in paragraph (2)(A) of such sub14 section (b) shall be deemed a reference to the

15 calendar year before the calendar year in which

16 the determination under subsection (a) of such

17 section 230 is made, and the reference to a cal18 endar year in paragraph (2)(B) of such sub19 section (b) shall be deemed a reference to

20 1992).’’.

21 (2) ADJUSTMENT OF EARNINGS TEST EXEMPT

22 AMOUNT.—Section 203(f)(8)(B)(ii) of the Social Se23 curity Act (42 U.S.C. 403(f)(8)(B)(ii)) is amended

24 to read as follows:
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1 ‘‘(ii) the product of the corresponding ex2 empt amount which is in effect with respect to

3 months in the taxable year ending after 1993

4 and before 1995, and the ratio of—

5 ‘‘(I) the national average wage index

6 (as defined in section 209(k)(1)) for the

7 calendar year before the calendar year in

8 which the determination under subpara9 graph (A) is made, to

10 ‘‘(II) the national average wage index

11 (as so defined) for 1992,

12 with such product, if not a multiple of $10,

13 being rounded to the next higher multiple of

14 $10 where such product is a multiple of $5 but

15 not of $10 and to the nearest multiple of $10

16 in any other case.’’.

17 (3) EFFECTIVE DATES.—

18 (A) The amendments made by subsection

19 (a) shall be effective with respect to the deter20 mination of the contribution and benefit base

21 for years after 1994.

22 (B) The amendment made by subsection

23 (b) shall be effective with respect to the deter-
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1 mination of the exempt amounts applicable to

2 any taxable year ending after 1994.

Passed the House of Representatives May 17, 1994.

Attest:

Clerk.

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