I

103D CONGRESS

2D SESSION H. R. 4277

To establish the Social Security Administration as an independent agency

and to make other improvements in the old-age, survivors, and disability

insurance program.

IN THE HOUSE OF REPRESENTATIVES

APRIL 21, 1994

Mr. JACOBS (for himself and Mr. FORD of Tennessee) introduced the

following bill; which was referred to the Committee on Ways and Means

A BILL

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; facilities; and procurement; 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—MISCELLANEOUS IMPROVEMENTS TO THE OLD-AGE,

SURVIVORS, AND DISABILITY INSURANCE PROGRAM

Sec. 201. Restrictions on benefits based on disability of substance abusers.

Sec. 202. Continuing disability review account.

Sec. 203. Issuance of physical documents in the form of bonds, notes, or certificates to the Social Security trust funds.

Sec. 204. Explicit requirements for maintenance of telephone access to local offices of the Social Security Administration.

Sec. 205. Expansion of State option to exclude service of election officials or

election workers from coverage.

Sec. 206. Use of social security numbers by States and local governments and

Federal district courts for jury selection purposes.

Sec. 207. Authorization for all States to extend coverage to State and local policemen and firemen under existing coverage agreements.

Sec. 208. Limited exemption for Canadian ministers from certain self-employment tax liability.

Sec. 209. Exclusion of totalization benefits from the application of the windfall

elimination provision.

Sec. 210. Exclusion of military reservists from application of the government

pension offset and windfall elimination provisions.

Sec. 211. Repeal of the facility-of-payment provision.

Sec. 212. Maximum family benefits in guarantee cases.

Sec. 213. Authorization for disclosure by the Secretary of Health and Human

Services of information for purposes of public or private epidemiological and similar research.

Sec. 214. Misuse of symbols, emblems, or names in reference to social security

programs and agencies.

Sec. 215. Increased penalties for unauthorized disclosure of social security information.

Sec. 216. Increase in authorized period for extension of time to file annual

earnings report.

Sec. 217. Extension of disability insurance program demonstration project authority.
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Sec. 218. Cross-matching of social security account number information and

employer identification number information maintained by the

Department of Agriculture.

Sec. 219. Certain transfers to railroad retirement account made permanent.

Sec. 220. Authorization for use of social security account numbers by Department of Labor in administration of Federal workers’ compensation laws.

Sec. 221. Retirement eligibility for Federal employees transferred to international organizations.

Sec. 222. Treatment of certain visas.

Sec. 223. Commission on Childhood Disability.

Sec. 224. 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;

10 (3) to establish a Social Security board as head

11 of the Social Security Administration and define the

12 powers and duties of such Board;

13 (4) to establish an Executive Director of the

14 Administration and define the powers and duties of

15 the Executive Director;

16 (5) to provide for delegating major authorities

17 to the Board and the Executive Director; and

18 (6) to make other improvements in the old-age,

19 survivors, and disability insurance program under

20 title II of the Social Security Act.
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1 TITLE I—ESTABLISHMENT OF

2 THE SOCIAL SECURITY AD3 MINISTRATION AS AN INDE4 PENDENT AGENCY

5 SEC. 101. ESTABLISHMENT OF THE SOCIAL SECURITY AD6 MINISTRATION AS A SEPARATE, INDEPEND7 ENT AGENCY; RESPONSIBILITIES OF THE

8 AGENCY.

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

10 901) is amended to read as follows:

11 ‘‘SOCIAL SECURITY ADMINISTRATION

12 ‘‘SEC. 701. There is hereby established, as an inde13 pendent agency in the executive branch of the Govern14 ment, a Social Security Administration. It shall be the

15 duty of the Administration to administer the old-age, sur16 vivors, and disability insurance program under title II and

17 the supplemental security income program under title

18 XVI.’’.

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

20 DEPUTY DIRECTOR, BENEFICIARY OMBUDS21 MAN; OTHER OFFICERS.

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

23 Act (42 U.S.C. 902) is amended to read as follows:
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1 ‘‘SOCIAL SECURITY BOARD; EXECUTIVE DIRECTOR;

2 OTHER OFFICERS

3 ‘‘Social Security Board

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

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

6 composed of three members appointed by the President,

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

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

9 impartiality, and good judgment, and shall be individuals

10 who are, by reason of their education, experience, and at11 tainments, exceptionally qualified to perform the duties of

12 members of the Board.

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

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

15 years. A member of the Board may be removed only pur16 suant to a finding by the President of neglect of duty or

17 malfeasance in office. The President shall transmit any

18 such finding to the Speaker of the House of Representa19 tives and the majority leader of the Senate not later than

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

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

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

23 years,

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

25 years, and
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1 ‘‘(III) one shall be appointed for a term of 6

2 years,

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

4 Such members shall be appointed after active consider5 ation of recommendations made by the chairman of the

6 Committee on Ways and Means of the House of Rep7 resentatives and of recommendations made by the chair8 man of the Committee on Finance of the Senate.

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

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

11 Board before the commencement of the President’s term

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

13 Any member appointed to a term of office after the com14 mencement of such term may serve under such appoint15 ment only for the remainder of such term. A member may,

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

17 one year after the expiration of his or her term until his

18 or her successor has taken office. A member of the Board

19 may be appointed for additional terms.

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

21 be of the same political party.

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

23 or her term as member, engage in any other business, vo24 cation, profession, or employment. A member of the Board

25 may continue as a member of the Board for not longer
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1 than the 30-day period beginning on the date such mem2 ber first fails to meet the requirements of the preceding

3 sentence.

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

5 quorum, except that one member may hold hearings.

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

7 the President to serve as Chairperson of the Board for

8 a term of 4 years.

9 ‘‘(G) The Board shall meet at the call of the Chair10 person or two members of the Board.

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

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

13 ‘‘(3) The Board shall—

14 ‘‘(A) govern by regulation the old-age, survi15 vors, and disability insurance program under title II

16 and the supplemental security income program

17 under title XVI,

18 ‘‘(B) establish the Administration and oversee

19 its efficient and effective operation,

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

21 to promote and maintain the effective implementa22 tion of programs referred to in subparagraph (A),

23 ‘‘(D) appoint an Executive Director of the Ad24 ministration, as described in subsection (b), to act as

25 the chief operating officer of the Administration re-
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1 sponsible for administering the programs referred to

2 in subparagraph (A),

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

4 Board of Trustees of the Federal Old-Age and Sur5 vivors Insurance Trust Fund and the Federal Dis6 ability Insurance Trust Fund, with the Chairperson

7 of the Social Security Board serving as Chairperson

8 of such Board of Trustees,

9 ‘‘(F) prepare an annual budget for the Admin10 istration, which shall be submitted by the President

11 to the Congress without revision, together with the

12 President’s annual budget for the Administration,

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

14 Congress and the President as to the most effective

15 methods of providing economic security through so16 cial insurance, supplemental security income, and re17 lated programs and as to legislation and matters of

18 administrative policy concerning the programs re19 ferred to in subparagraph (A),

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

21 with the ongoing actuarial and other analysis under22 taken by the Administration with respect to the pro23 grams referred to in subparagraph (A) and any

24 other information relating to such programs, and
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1 ‘‘(I) conduct policy analysis and research relat2 ing to the programs referred to in subparagraph

3 (A).

4 ‘‘(4)(A) The Board may prescribe such rules and reg5 ulations as the Board determines necessary or appropriate

6 to carry out the functions of the Administration. The reg7 ulations prescribed by the Board shall be subject to the

8 rulemaking procedures established under section 553 of

9 title 5, United States Code.

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

11 discontinue such organizational units or components with12 in the Administration as the Board considers necessary

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

14 subparagraph shall not apply with respect to any unit,

15 component, or position provided for by this Act.

16 ‘‘(C) The Board may, with respect to the administra17 tion of the old-age, survivors, and disability insurance pro18 gram under title II and the supplemental security income

19 program under title XVI, assign duties, and delegate, or

20 authorize successive redelegations of, authority to act and

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

22 Board may find necessary. Within the limitations of such

23 delegations, redelegations, or assignments, all official acts

24 and decisions of such officers and employees shall have
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1 the same force and effect as though performed or rendered

2 by the Board.

3 ‘‘Executive Director

4 ‘‘(b)(1) There shall be in the Administration an Exec5 utive Director who shall be appointed by the Social Secu6 rity Board.

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

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

9 of office as Executive Director after the commencement

10 of such term of office may serve under such appointment

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

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

13 Executive Director after the expiration of his or her term

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

15 taken office. An individual may be appointed as Executive

16 Director for additional terms.

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

18 of Executive Director before completion of his or her term

19 only for cause found by the Board.

20 ‘‘(3) The Executive Director shall be compensated at

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

22 ‘‘(4) The Executive Director shall—

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

24 Administration, responsible for administering, in ac25 cordance with applicable statutes and regulations,
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1 the old-age, survivors, and disability insurance pro2 gram under title II and the supplemental security

3 income program under title XVI,

4 ‘‘(B) maintain an efficient and effective oper5 ational structure for the Administration,

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

7 Board to promote and maintain the effective imple8 mentation of such programs,

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

10 costs under titles II and XVI, make annual budg11 etary recommendations to the Board for the ongoing

12 administrative costs of the Administration under this

13 Act, and defend the recommendations before the

14 Board,

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

16 effect on the administration of such programs of

17 proposed legislative changes in such programs,

18 ‘‘(F) serve as Secretary of the Board of Trust19 ees of the Federal Old-Age and Survivors Insurance

20 Trust Fund and the Federal Disability Insurance

21 Trust Fund,

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

23 Board for transmittal to the Congress concerning

24 the administrative endeavors and accomplishments

25 of the Administration, and
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1 ‘‘(H) carry out such additional duties as are as2 signed by the Board from time to time.

3 Any reference to the Board in this Act or any other provi4 sion of law in connection with the exercise of a function

5 of the Board which is delegated to the Executive Director

6 pursuant to this section shall be considered a reference

7 to the Executive Director.

8 ‘‘Deputy Director of Social Security

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

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

11 serve at the pleasure of the Executive Director.

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

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

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

15 and exercise such powers as the Executive Director shall

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

17 shall be Acting Executive Director of the Administration

18 during the absence or disability of the Executive Director

19 and, unless the Board designates another officer of the

20 Government as Acting Executive Director, in the event of

21 a vacancy in the office of the Executive Director.

22 ‘‘General Counsel

23 ‘‘(d)(1) There shall be in the Administration a Gen24 eral Counsel, who shall be appointed by and serve at the
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1 pleasure of the Board. The General Counsel shall be the

2 principal legal officer in the Administration.

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

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

5 ‘‘Inspector General

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

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

8 an Inspector General appointed in accordance with the In9 spector General Act of 1978.

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

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

12 ‘‘Beneficiary Ombudsman

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

14 of the Beneficiary Ombudsman, to be headed by a Bene15 ficiary Ombudsman appointed by the Board.

16 ‘‘(2)(A) The Beneficiary Ombudsman shall be ap17 pointed for a term of five years, except that the individual

18 first appointed to the Office of Beneficiary Ombudsman

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

20 An individual appointed to a term of office as Beneficiary

21 Ombudsman after the commencement of such term may

22 serve under such appointment only for the remainder of

23 such term. An individual may, at the request of the Chair24 person of the Board, serve as Beneficiary Ombudsman

25 after the expiration of his or her term for not more than
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1 one year until his or her successor has taken office. An

2 individual may be appointed as Beneficiary Ombudsman

3 for additional terms.

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

5 of Beneficiary Ombudsman before completion of his or her

6 term only for cause found by the Board.

7 ‘‘(3) The Beneficiary Ombudsman shall be com8 pensated at the rate provided for level V of the Executive

9 Schedule.

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

11 as follows:

12 ‘‘(A) to represent within the Administration’s

13 decisionmaking process the interests and concerns of

14 beneficiaries under the old-age, survivors, and dis15 ability insurance program under title II and the sup16 plemental security income program under title XVI;

17 ‘‘(B) to review the Administration’s policies and

18 procedures for possible adverse effects on such bene19 ficiaries;

20 ‘‘(C) to recommend within the Administration’s

21 decisionmaking process changes in policies which

22 have caused problems for such beneficiaries;

23 ‘‘(D) to help resolve the problems under such

24 programs of individual beneficiaries in unusual or
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1 difficult circumstances, as determined by the Admin2 istration; and

3 ‘‘(E) to represent within the Administration’s

4 decisionmaking process the views of beneficiaries in

5 the design of forms and the issuance of instructions.

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

7 Beneficiary Ombudsman has staff sufficient to enable the

8 Beneficiary Ombudsman to efficiently carry out his or her

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

10 program centers, and central office of the Administration.

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

12 704 shall include a description of the activities of the Ben13 eficiary Ombudsman.

14 ‘‘Administrative Law Judge

15 ‘‘(g)(1) There shall be in the Administration an Of16 fice of the Chief Administrative Law Judge, who shall be

17 appointed by the Board. The duty of the Chief Adminis18 trative Law Judge shall be to administer the affairs of

19 the administrative law judges serving in the Administra20 tion in a manner so as to ensure that hearings and other

21 business are conducted by the administrative law judges

22 in accordance with applicable law and regulations.

23 ‘‘(2) The Chief Administrative Law Judge shall re24 port directly to the Board.’’.
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1 (b) CONFORMING AMENDMENTS RELATING TO COM2 POSITION OF BOARD OF TRUSTEES OF OASDI TRUST

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

4 is amended—

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

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

7 officio’’ and inserting the following: ‘‘shall be com8 posed of the members of the Social Security Board,

9 the Secretary of the Treasury, the Secretary of

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

11 (2) by inserting after the first sentence the fol12 lowing new sentence: ‘‘The Chairperson of the Social

13 Security Board shall be the Chairperson of the

14 Board of Trustees.’’; and

15 (3) by striking ‘‘Commissioner of Social Secu16 rity’’ and inserting ‘‘Executive Director of the Social

17 Security Administration’’.

18 (c) INTERIM AUTHORITY OF THE COMMISSIONER.—

19 The President shall nominate for appointment the initial

20 members of the Social Security Board not later than April

21 1, 1995. In the event that, as of October 1, 1995, all mem22 bers of the Social Security Board have not entered upon

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

24 office, the officer serving on October 1, 1995, as Commis25 sioner of Social Security in the Department of Health and
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1 Human Services (or Acting Commissioner, if applicable),

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

3 as Commissioner of Social Security (or Acting Commis4 sioner) in such Department, serve as head of the Social

5 Security Administration established under section 701 of

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

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

8 Executive Director under such Act (as amended by this

9 Act).

10 SEC. 103. PERSONNEL; BUDGETARY MATTERS; FACILITIES;

11 AND PROCUREMENT; SEAL OF OFFICE.

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

13 903) is amended to read as follows:

14 ‘‘ADMINISTRATIVE DUTIES OF THE SOCIAL SECURITY

15 BOARD

16 ‘‘Personnel

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

18 appoint such additional officers and employees as it con19 siders necessary to carry out its functions. Except as oth20 erwise provided in any other provision of law, such officers

21 and employees shall be appointed, and their compensation

22 shall be fixed, in accordance with title 5, United States

23 Code.

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

25 and consultants in accordance with the provisions of sec26 tion 3109 of title 5, United States Code.
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1 ‘‘(3) The Director of the Office of Personnel Manage2 ment shall authorize for the Administration a total num3 ber of Senior Executive Service positions which is greater

4 than the number of such positions authorized in the Social

5 Security Administration in the Department of Health and

6 Human Services as of immediately before the date of the

7 enactment of the Social Security Administrative Reform

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

9 authorized positions is specified in the comprehensive

10 workforce plan as established and revised by the Board

11 under subsection (b)(1). The total number of such posi12 tions authorized for the Administration pursuant to such

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

14 of such authorized positions as of immediately before such

15 date.

16 ‘‘(4) In addition to the positions of the Administra17 tion in the Executive Schedule specified in section 702,

18 the Administration is authorized six additional positions

19 at level IV of the Executive Schedule and six additional

20 positions at level V of the Executive Schedule.

21 ‘‘Budgetary Matters

22 ‘‘(b)(1) Appropriations requests for staffing and per23 sonnel of the Administration shall be based upon a com24 prehensive workforce plan, which shall be established and

25 revised from time to time by the Board. The entire amount
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1 of appropriations provided for the administrative costs of

2 the Administration shall be apportioned in the time period

3 provided in title 31, United States Code, for apportion4 ment and shall be apportioned for the entire period of

5 availability without restriction or deduction by the appor6 tioning officer or employee of the Office of Management

7 and Budget or any other entity within the executive

8 branch of the Federal Government, except as otherwise

9 provided in this subsection.

10 ‘‘(2) The report submitted pursuant to section 704

11 shall include a section reflecting the use of budget author12 ity provided to the Administration by quarters.

13 ‘‘(3)(A) The authority of the Administration for fa14 cilities construction, and any authority of the Administra15 tion for automated data processing procurement which is

16 delegated thereto, shall be provided in the form of contract

17 authority covering the total costs thereof, to be available

18 until expended.

19 ‘‘(B) Amounts necessary for the liquidation of con20 tract authority provided pursuant to this paragraph are

21 hereby made available from the Federal Old-Age and Sur22 vivors Insurance Trust Fund and the Federal Disability

23 Insurance Trust Fund to the extent that the Board, with

24 the concurrence of the Secretary of the Treasury, deter25 mines that such amounts are not necessary to meet the
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1 current obligations for benefit payments from the Trust

2 Funds.

3 ‘‘(C) Funds appropriated for the Administration to

4 be available on a contingency basis shall be apportioned

5 only upon the occurrence of the stipulated contingency, as

6 determined by the Board and reported to each House of

7 the Congress.

8 ‘‘Seal of Office

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

10 for the Administration of such design as the Board shall

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

12 SEC. 104. TRANSFERS TO THE NEW SOCIAL SECURITY AD13 MINISTRATION.

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

15 Security Administration all functions carried out by the

16 Secretary of Health and Human Services with respect to

17 the programs and activities the administration of which

18 is vested in the Social Security Administration by reason

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

20 Security Board shall allocate such functions in accordance

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

22 Act (as amended by this Act).

23 (b) PERSONNEL, ASSETS, ETC.—(1) There are trans24 ferred from the Department of Health and Human Serv25 ices to the Social Security Administration, for appropriate
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1 allocation by the Social Security Board in the Social Secu2 rity Administration—

3 (A) the personnel (other than administrative

4 law judges) employed in connection with the func5 tions transferred by this Act and the amendments

6 made thereby, as considered appropriate by the

7 Board in consultation with the Secretary of Health

8 and Human Services,

9 (B) such number of administrative law judges

10 as are necessary to carry out the functions trans11 ferred by this Act and the amendments made there12 by, as determined by the Board in consultation with

13 the Secretary of Health and Human Services, and

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

15 records, and unexpended balance of appropriations,

16 authorizations, allocations, and other funds em17 ployed, held, or used in connection with such func18 tions, arising from such functions, or available, or to

19 be made available, in connection with such functions.

20 (2) Unexpended funds transferred pursuant to this

21 subsection shall be used only for the purposes for which

22 the funds were originally authorized and appropriated.

23 (3) The Secretary of Health and Human Services

24 shall terminate—
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1 (A) six positions in the Department of Health

2 and Human Services placed in level IV of the Execu3 tive Schedule (or equivalent positions) other than po4 sitions specifically required under section 5315 of

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

6 of law, and

7 (B) six positions in such Department placed in

8 level V of the Executive Schedule (or equivalent po9 sitions) other than positions specifically required

10 under section 5316 of such title or any other provi11 sion of law.

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

13 personnel (except special Government employees) and

14 part-time personnel holding permanent positions shall not

15 cause any such employees to be separated or reduced in

16 grade or compensation for 1 year after such transfer or

17 October 1, 1995, whichever is later.

18 (c) ABOLISHMENT OF OFFICE OF COMMISSIONER IN

19 THE DEPARTMENT OF HEALTH AND HUMAN SERV20 ICES.—Effective upon the entry upon office of all initial

21 members of the Social Security Board pursuant to section

22 702 of the Social Security Act (as amended by this Act),

23 the position of Commissioner of Social Security in the De24 partment of Health and Human Services is abolished.
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1 SEC. 105. TRANSITIONAL RULES.

2 (a) INTERIM AUTHORITY FOR APPOINTMENT AND

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

4 enactment of this Act—

5 (1) any of the officers provided for in section

6 702 of the Social Security Act (as amended by this

7 Act) may enter upon office, as provided in such sec8 tion, and

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

10 office of all of the members thereof, may prescribe

11 regulations providing for the orderly transfer of pro12 ceedings before the Secretary of Health and Human

13 Services to the Social Security Board.

14 Funds available to any official or component of the De15 partment of Health and Human Services, functions of

16 which are transferred to the Social Security Board or the

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

18 with the approval of the Director of the Office of Manage19 ment and Budget, to pay the compensation and expenses

20 of any officer entering upon office pursuant to this section

21 until such time as funds for that purpose are otherwise

22 available.

23 (b) CONTINUATION OF ORDERS, DETERMINATIONS,

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

25 rules, regulations, permits, contracts, collective bargaining
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1 agreements, recognitions of labor organizations, certifi2 cates, licenses, and privileges—

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

4 granted, or allowed to become effective, in the exer5 cise of functions (A) which were exercised by the

6 Secretary of Health and Human Services (or his del7 egate), and (B) which relate to functions which, by

8 reason of this Act, the amendments made thereby,

9 and regulations prescribed thereunder, are vested in

10 the Social Security Board, and

11 (2) which are in effect immediately before Octo12 ber 1, 1995,

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

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

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

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

17 (c) CONTINUATION OF PROCEEDINGS.—The provi18 sions of this Act (including the amendments made there19 by) shall not affect any proceeding pending before the Sec20 retary of Health and Human Services immediately before

21 October 1, 1995, with respect to functions vested (by rea22 son of this Act, the amendments made thereby, and regu23 lations prescribed thereunder) in the Social Security

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

25 they relate to such functions, shall continue before such
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1 Board. Orders shall be issued under any such proceeding,

2 appeals taken therefrom, and payments shall be made pur3 suant to such orders, in like manner as if this Act had

4 not been enacted, and orders issued in any such proceed5 ing shall continue in effect until modified, terminated, su6 perseded, or repealed by such Board, by a court of com7 petent jurisdiction, or by operation of law.

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

9 in this subsection—

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

11 suits commenced prior to October 1, 1995; and

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

13 appeals taken, and judgments rendered, in the same

14 manner and effect as if this Act had not been en15 acted. No cause of action, and no suit, action, or

16 other proceeding commenced by or against any offi17 cer in his official capacity as an officer of the De18 partment of Health and Human Services, shall abate

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

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

21 asserted by or against the United States and the So22 cial Security Administration, or such official of such

23 Administration as may be appropriate, and, in any

24 litigation pending immediately before October 1,

25 1995, the court may at any time, on its own motion
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1 or that of a party, enter an order which will give ef2 fect to the provisions of this subsection (including,

3 where appropriate, an order for substitution of par4 ties).

5 (e) CONTINUATION OF PENALTIES.—This Act shall

6 not have the effect of releasing or extinguishing any crimi7 nal prosecution, penalty, forfeiture, or liability incurred as

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

9 the amendments made thereby, and regulations prescribed

10 thereunder) is vested in the Social Security Board.

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

12 Social Security Board in the exercise of functions vested

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

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

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

16 made and such actions had been taken by the Secretary

17 of Health and Human Services in the exercise of such

18 functions immediately before October 1, 1995. Any statu19 tory requirements relating to notice, hearings, action upon

20 the record, or administrative review that apply to any

21 function so vested in such Board shall continue to apply

22 to the exercise of such function by such Board.

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

24 functions vested in the Social Security Board under this

25 Act, the amendments made thereby, and regulations pre-
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1 scribed thereunder, such Board shall have the same au2 thority as that vested in the Secretary of Health and

3 Human Services with respect to the exercise of such func4 tions immediately preceding the vesting of such functions

5 in such Board, and actions of such Board shall have the

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

7 (h) OPERATION OF TRANSITIONAL RULES IN THE

8 EVENT OF INTERIM AUTHORITY IN THE COMMIS9 SIONER.—For purposes of this section, in any case in

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

11 Security Board are transferred to the Commissioner of So12 cial Security (or acting Commissioner) in the Department

13 of Health and Human Services for an interim period pur14 suant to section 102(c), the preceding provisions of this

15 section shall apply with respect to the transfer of such

16 powers and duties to and from such Commissioner (or act17 ing Commissioner) pursuant to section 102(c) in the same

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

19 to a direct transfer from the Secretary of Health and

20 Human Services to the Social Security Board if all mem21 bers of the Board had entered upon office.

22 SEC. 106. CONFORMING AMENDMENTS TO TITLES II AND

23 XVI OF THE SOCIAL SECURITY ACT.

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

25 (other than section 201, section 218(d), section 226, sec-
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•HR 4277 IH

1 tion 226A, and section 231(c)) and title XVI of such Act

2 are each amended—

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

4 ‘‘Secretary of Health and Human Services’’ and in5 serting ‘‘Social Security Board’’;

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

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

8 inserting ‘‘Social Security Administration’’;

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

10 ‘‘Department’’ (but only if it is not immediately suc11 ceeded by the words ‘‘of Health and Human Serv12 ices’’, and only if it is used in reference to the De13 partment of Health and Human Services) and in14 serting ‘‘Administration’’;

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

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

17 such word only if such word refers to the Secretary

18 of Health and Human Services): ‘‘Secretary’’, ‘‘Sec19 retary’s’’, ‘‘his’’, ‘‘him’’, and ‘‘he’’, and inserting (in

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

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

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

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

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

25 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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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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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 feasibility,

7 cost, and equity of requiring representative

8 payees for all individuals entitled to bene9 fits based on disability under title II or

10 XVI of the Social Security Act who suffer

11 from alcoholism or drug addiction, irre12 spective of whether the alcoholism or drug

13 addiction was material in any case to the

14 Secretary’s determination of disability.

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 selecting under this paragraph any person to

9 serve as the representative payee for an individual entitled

10 to benefits based on disability, if alcoholism or drug addic11 tion is a contributing factor material to the Secretary’s

12 determination that the individual is under a disability,

13 preference shall be given to community-based nonprofit so14 cial service agencies licensed or bonded by the State, or

15 State or local government agencies whose mission is to

16 carry out income maintenance, social service, or health

17 care-related activities.’’.

18 (B) AVAILABILITY OF PUBLIC AGENCIES

19 AND OTHER QUALIFIED ORGANIZATIONS TO

20 SERVE AS REPRESENTATIVE PAYEES.—Section

21 205(j)(4) of such Act (42 U.S.C. 405(j)(4)) is

22 amended—

23 (i) in subparagraph (A)(ii), by insert24 ing ‘‘($50.00 per month in the case of an

25 individual who is entitled to benefits based
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1 on disability if alcoholism or drug addic2 tion is a contributing factor material to the

3 Secretary’s determination that the individ4 ual is under a disability)’’ after ‘‘$25.00

5 per month’’; and

6 (ii) in subparagraph (B)—

7 (I) by inserting ‘‘State or local

8 government agency whose mission is

9 to carry out income maintenance, so10 cial service, or health care-related ac11 tivities, or any’’ after ‘‘means any’’;

12 (II) by striking ‘‘representative

13 payee and which,’’ and inserting ‘‘rep14 resentative payee, if such agency,’’;

15 and

16 (III) by striking ‘‘, and’’ at the

17 end of clause (ii) and inserting a pe18 riod.

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

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

21 the end the following new paragraph:

22 ‘‘(7) For purposes of this subsection, the term ‘bene23 fit based on disability’ of an individual means a disability

24 insurance benefit of such individual under section 223 or

25 a child’s, widow’s, or widower’s insurance benefit of such
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1 individual under section 202 based on such individual’s

2 disability.’’.

3 (3) NONPAYMENT OR TERMINATION OF BENE4 FITS BY REASON OF NONCOMPLIANCE WITH TREAT5 MENT REQUIREMENTS.—

6 (A) IN GENERAL.—Section 225 of such

7 Act (42 U.S.C. 425) is amended—

8 (i) by striking the heading and insert9 ing the following:

10 ‘‘ADDITIONAL RULES RELATING TO BENEFITS BASED ON

11 DISABILITY

12 ‘‘Suspension of Benefits’’;

13 (ii) by inserting before subsection (b)

14 the following new heading:

15 ‘‘Continued Payments During Rehabilitation Program’’;

16 and

17 (iii) by adding at the end the follow18 ing new subsection:

19 ‘‘Nonpayment or Termination of Benefits for Failure to

20 Undergo Required Treatment for Alcoholism or

21 Drug Addiction

22 ‘‘(c)(1) Notwithstanding any other provision of this

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

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

25 contributing factor material to the Secretary’s determina26 tion that such individual is under a disability and such
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1 individual is determined by the Secretary not to be in com2 pliance with the requirements of this subsection for a

3 month, such benefits shall be suspended for a period com4 mencing with such month and ending with the month pre5 ceding the first month, after the determination of non6 compliance, in which such individual demonstrates that he

7 or she has reestablished and maintained compliance with

8 such requirements for the applicable period specified in

9 paragraph (3).

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

11 in compliance with the requirements of this subsection for

12 a month if such individual in such month undergoes any

13 medical or psychological treatment that may be appro14 priate, for such individual’s condition diagnosed as sub15 stance abuse or alcohol abuse and for the stage of such

16 individual’s rehabilitation, at an institution or facility ap17 proved for purposes of this subsection by the Secretary,

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

19 and requirements of such treatment and with require20 ments imposed by the Secretary under paragraph (6).

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

22 not be determined to be not in compliance with the re23 quirements of this subsection for a month if access by such

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

4 alcohol treatment professionals, shall issue regulations—

5 ‘‘(i) defining appropriate treatment for alcohol6 ics and drug addicts who are subject to required

7 medical or psychological treatment under this sub8 section, and

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

10 and evaluate their compliance, including measures of

11 the progress of participants in such programs.

12 ‘‘(C)(i) For purposes of carrying out the require13 ments of subparagraphs (A) and (B), the Secretary shall

14 establish in each State a referral and monitoring agency

15 for such State.

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

17 shall—

18 ‘‘(I) identify appropriate placements, for indi19 viduals residing in such State who are entitled to

20 benefits based on disability and with respect to

21 whom alcoholism or drug addiction is a contributing

22 factor material to the Secretary’s determination that

23 they are under a disability, where they may obtain

24 treatment described in paragraph (2)(A),
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1 ‘‘(II) refer such individuals to such placements

2 for such treatment, and

3 ‘‘(III) monitor compliance with the require4 ments of paragraph (2)(A) by individuals who are

5 referred by the agency to such placements and

6 promptly report failures to comply to the Secretary.

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

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

9 or drug addiction is a contributing factor material to the

10 Secretary’s determination that the individual is under a

11 disability, payment of any past-due monthly insurance

12 benefits under this title to which such individual is entitled

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

14 sum of—

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

16 in such month, and

17 ‘‘(B) the amount of any benefit for the preced18 ing month under such current entitlement which is

19 payable in such month,

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

21 for the preceding month.

22 ‘‘(8) For purposes of this subsection, the term ‘bene23 fit based on disability’ of an individual means a disability

24 insurance benefit of such individual under section 223 or

25 a child’s, widow’s, or widower’s insurance benefit of such
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1 individual under section 202 based on the disability of

2 such individual.’’.

3 (B) PRESERVATION OF MEDICARE BENE4 FITS.—Section 226 of such Act (42 U.S.C.

5 426) is amended by adding at the end the fol6 lowing:

7 ‘‘(i) For purposes of this section, each person whose

8 benefit for any month is not payable by reason of para9 graph (1) of section 225(c) (and is not terminated by rea10 son of paragraph (4) of section 225(c)) shall be treated

11 as entitled to such benefit for such month if such person

12 would be entitled to such benefit for such month in the

13 absence of such section.’’.

14 (C) EFFECTIVE DATE.—The amendments

15 made by this paragraph (other than section

16 225(c)(6)(C) of the Social Security Act added

17 by this paragraph) shall apply with respect to

18 benefits based on disability (as defined in sec19 tion 225(c)(8) of the Social Security Act, added

20 by this section) of individuals becoming eligible

21 for such benefits after 180 days after the date

22 of the enactment of this Act. For purposes of

23 determining eligibility for benefits under this

24 subparagraph, the rules applicable in determin25 ing eligibility under section 215(a)(3)(B)(ii) of
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1 the Social Security Act shall apply. Section

2 225(c)(6)(C) of the Social Security Act shall

3 take effect 180 days after the date of the enact4 ment of this Act.

5 (4) IRRELEVANCE OF LEGALITY OF SERVICES

6 PERFORMED IN DETERMINING SUBSTANTIAL GAIN7 FUL ACTIVITY.—

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

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

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

11 (ii) by adding at the end the following

12 new subparagraph:

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

14 services performed or earnings derived from services dem15 onstrate an individual’s ability to engage in substantial

16 gainful activity, the Secretary apply the criteria described

17 in subparagraph (A) with respect to services performed

18 by any individual without regard to the legality of such

19 services.’’.

20 (B) EFFECTIVE DATE.—The amendments

21 made by this paragraph shall take effect on the

22 date of the enactment of this Act.

23 (b) AMENDMENTS RELATING TO SUPPLEMENTAL SE24 CURITY INCOME BENEFITS UNDER TITLE XVI OF THE

25 SOCIAL SECURITY ACT.—
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1 (1) REQUIRED PAYMENT OF BENEFITS TO REP2 RESENTATIVE PAYEES.—

3 (A) IN GENERAL.—Section 1631(a)(2)(A)

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

5 1383(a)(2)(A)) is amended—

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

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

8 entitled to benefits under this title by rea9 son of disability, if alcoholism or drug ad10 diction is a contributing factor material to

11 the Secretary’s determination that the in12 dividual is disabled, the payment of such

13 benefits to a representative payee shall be

14 deemed to serve the interest of such indi15 vidual under this title.’’; and

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

17 individual or eligible spouse or to an alter18 native representative payee of the individ19 ual or eligible spouse’’ and inserting ‘‘to an

20 alternative representative payee of the indi21 vidual or eligible spouse or, if the interest

22 of the individual under this title would be

23 served thereby, to the individual or eligible

24 spouse’’.
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1 (B) EFFECTIVE DATE.—The amendments

2 made by subparagraph (A) shall apply with re3 spect to benefits for months beginning after

4 180 days after the date of the enactment of this

5 Act.

6 (2) INCREASED RELIANCE ON PROFESSIONAL

7 REPRESENTATIVE PAYEES.—

8 (A) PREFERENCE REQUIRED FOR ORGANI9 ZATIONAL REPRESENTATIVE PAYEES.—Section

10 1631(a)(2)(B) of such Act (42 U.S.C.

11 1383(a)(2)(B)) is amended—

12 (i) by redesignating clauses (vii)

13 through (xii) as clauses (viii) through

14 (xiii), respectively;

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

16 following:

17 ‘‘(vii) In selecting under this subparagraph any per18 son to serve as the representative payee for an individual

19 entitled to benefits under this title by reason of disability,

20 if alcoholism or drug addiction is a contributing factor ma21 terial to the Secretary’s determination that the individual

22 is disabled, preference shall be given to community-based

23 nonprofit social service agencies licensed or bonded by the

24 State, or State or local government agencies whose mis-
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1 sion is to carry out income maintenance, social service,

2 or health care-related activities.’’;

3 (iii) in clause (viii) (as so redesig4 nated), by striking ‘‘clause (viii)’’ and in5 serting ‘‘clause (ix)’’;

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

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

8 (v) in clause (xiii) (as so redesig9 nated)—

10 (I) by striking ‘‘(xi)’’ and insert11 ing ‘‘(xii)’’; and

12 (II) by striking ‘‘(x)’’ and insert13 ing ‘‘(xi)’’.

14 (B) AVAILABILITY OF PUBLIC AGENCIES

15 AND OTHER QUALIFIED ORGANIZATIONS TO

16 SERVE AS REPRESENTATIVE PAYEES.—Section

17 1631(a)(2)(D) of such Act (42 U.S.C.

18 1383(a)(2)(D)) is amended—

19 (i) in clause (i)(II), by inserting

20 ‘‘($50.00 per month in the case of an indi21 vidual who is entitled to benefits under this

22 title by reason of disability if alcoholism or

23 drug addiction is a contributing factor ma24 terial to the Secretary’s determination that
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1 the individual is disabled)’’ after ‘‘$25.00

2 per month’’; and

3 (ii) in clause (ii)—

4 (I) by inserting ‘‘State or local

5 government agency whose mission is

6 to carry out income maintenance, so7 cial service, or health care-related ac8 tivities, or any’’ after ‘‘means any’’;

9 (II) by inserting a comma after

10 ‘‘service agency’’;

11 (III) by adding ‘‘and’’ at the end

12 of subclause (I); and

13 (IV) in subclause (II)—

14 (aa) by adding ‘‘and’’ at the

15 end of item (aa);

16 (bb) by striking ‘‘; and’’ at

17 the end of item (bb) and insert18 ing a period; and

19 (cc) by striking item (cc).

20 (3) NONPAYMENT OR TERMINATION OF BENE21 FITS BY REASON OF CONTINUED SUBSTANCE ABUSE

22 OR ALCOHOL ABUSE.—

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

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

25 by redesignating subparagraph (B) as subpara-
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1 graph (C) and by inserting after subparagraph

2 (A) the following:

3 ‘‘(B)(i) Notwithstanding any other provision of this

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

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

6 or drug addiction is a contributing factor material to the

7 Secretary’s determination that such individual is disabled

8 and such individual is determined by the Secretary not

9 to be in compliance with the requirements of this subpara10 graph for a month, such benefits shall be suspended for

11 a period commencing with such month and ending with

12 the month preceding the first month, after the determina13 tion of noncompliance, in which such individual dem14 onstrates that he or she has reestablished and maintained

15 compliance with such requirements for the applicable pe16 riod specified in clause (iii).

17 ‘‘(ii)(I) An individual described in clause (i) is in com18 pliance with the requirements of this subparagraph for a

19 month if the individual in such month undergoes any med20 ical or psychological treatment that may be appropriate,

21 for the individual’s condition diagnosed as substance

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

23 rehabilitation, at an institution or facility approved for

24 purposes of this subparagraph by the Secretary, and com25 plies in such month with the terms, conditions, and re-
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1 quirements of such treatment and with requirements im2 posed by the Secretary under subparagraph (C).

3 ‘‘(II) An individual described in clause (i) shall not

4 be determined to be not in compliance with the require5 ments of this subparagraph for a month if access by such

6 individual to such treatment is not reasonably available

7 for the month, as determined under regulations of the Sec8 retary.

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

10 is—

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

12 determination that an individual is not in compliance

13 with the requirements of this subparagraph;

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

15 2nd such determination with respect to the individ16 ual; or

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

18 3rd or subsequent such determination with respect

19 to the individual.

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

21 for purposes of this title for the 12-month period that be22 gins with the end of any period of 12 consecutive months

23 for which the benefits of the individual under this title

24 have been suspended by reason of this subparagraph.
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1 ‘‘(v)(I) The Secretary shall not, in a month, pay to

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

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

4 exceeds the amount of benefits under this title which are

5 payable to the individual for the month and the payment

6 of which is not past due.

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

8 ‘benefits under this title’ includes supplementary pay9 ments of the type described in section 1616(a) and pay10 ments pursuant to an agreement entered into under sec11 tion 212(a) of Public Law 93–66.’’.

12 (B) REFERRAL, MONITORING, AND TREAT13 MENT.—Section 1611(e)(3)(C) of such Act (42

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

15 amendment made by subparagraph (A) of this

16 paragraph, is amended—

17 (i) by inserting ‘‘(i)’’ after ‘‘(C)’’; and

18 (ii) by adding after and below the end

19 following:

20 ‘‘(ii) The Secretary, in consultation with drug and al21 cohol treatment professionals, shall issue regulations—

22 ‘‘(I) defining appropriate treatment for alcohol23 ics and drug addicts who are subject to required

24 medical or psychological treatment under this sub25 paragraph; and
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1 ‘‘(II) establishing guidelines to be used to re2 view and evaluate their compliance, including meas3 ures of the progress of participants in such pro4 grams.

5 ‘‘(iii)(I) For purposes of carrying out the require6 ments of clauses (i) and (ii), the Secretary shall establish

7 in each State a referral and monitoring agency for the

8 State.

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

10 shall—

11 ‘‘(aa) identify appropriate placements, for indi12 viduals residing in the State who are entitled to ben13 efits under this title by reason of disability and with

14 respect to whom alcoholism or drug addiction is a

15 contributing factor material to the Secretary’s deter16 mination that they are disabled, where they may ob17 tain treatment described in subparagraph (B)(ii)(I);

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

19 for such treatment; and

20 ‘‘(cc) monitor compliance with the requirements

21 of subparagraph (B) by individuals who are referred

22 by the agency to such placements, and promptly re23 port to the Secretary any failure to comply with

24 such requirements.’’.
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1 (C) PRESERVATION OF MEDICAID BENE2 FITS.—Section 1634 of such Act (42 U.S.C.

3 13283c) is amended by adding at the end the

4 following:

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

6 by reason of disability are not payable for any month sole7 ly by reason of section 1611(j) shall be treated, for pur8 poses of title XIX, as receiving benefits under this title

9 for such month.’’.

10 (D) CONFORMING AMENDMENTS.—Section

11 1611(e)(3) of such Act (42 U.S.C. 1382(e)(3)),

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

13 this paragraph, is amended—

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

15 ‘‘(B)’’ and insertng ‘‘(C)’’; and

16 (ii) in subparagraph (C), by inserting

17 ‘‘or (B)’’ after ‘‘(A)’’.

18 (4) IRRELEVANCE OF LEGALITY OF SUBSTAN19 TIAL GAINFUL ACTIVITY.—

20 (A) IN GENERAL.—Section 1614 of such

21 Act (42 U.S.C. 1382c) is amended by adding at

22 the end the following:

23 ‘‘(g) The Secretary shall make determinations under

24 this title with respect to substantial gainful activity, with25 out regard to the legality of the activity.’’.
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1 (B) EFFECTIVE DATE.—The amendment

2 made by subparagraph (A) shall take effect on

3 the date of the enactment of this Act.

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

5 the preceding provisions of this section shall apply to bene6 fits payable for months beginning 180 or more days after

7 the date of the enactment of this Act.

8 (d) DEMONSTRATION PROJECTS.—

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

10 Human Services shall develop and carry out dem11 onstration projects designed to explore innovative re12 ferral, monitoring, and treatment approaches with

13 respect to—

14 (A) individuals who are entitled to disabil15 ity insurance benefits or child’s, widow’s, or

16 widower’s insurance benefits based on disability

17 under title II of the Social Security Act, and

18 (B) individuals who are eligible for supple19 mental security income benefits under title XVI

20 of such Act based solely on disability,

21 in cases in which alcoholism or drug addiction is a

22 contributing factor material to the Secretary’s deter23 mination that individuals are under a disability.

24 (2) SCOPE.—The demonstration projects devel25 oped under paragraph (1) shall be of sufficient scope
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1 and shall be carried out on a wide enough scale to

2 permit a thorough evaluation of the alternative ap3 proaches under consideration while giving assurance

4 that the results derived from the projects will obtain

5 generally in the operation of the programs involved

6 without committing such programs to the adoption

7 of any particular system either locally or nationally.

8 (3) FINAL REPORT.—The Secretary shall sub9 mit to the Committee on Ways and Means of the

10 House of Representatives and the Committee on Fi11 nance of the Senate no later than December 31,

12 1997, a final report on the demonstration projects

13 carried out under this subsection, together with any

14 related data and materials which the Secretary may

15 consider appropriate. The authority under this sec16 tion shall terminate upon the transmittal of such

17 final report.

18 SEC. 202. CONTINUING DISABILITY REVIEW ACCOUNT.

19 (a) IN GENERAL.—Section 201 of the Social Security

20 Act (42 U.S.C. 401) is amended by adding at the end the

21 following new subsection:

22 ‘‘(n)(1) There is hereby created in the Federal Dis23 ability Insurance Trust Fund a Continuing Disability Re24 view Account (hereinafter in this subsection referred to as

25 the ‘Account’). The Account shall consist of such amounts
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1 as may be transferred to it under this subsection. The bal2 ance in the Account shall be available solely for expendi3 tures certified under paragraph (3).

4 ‘‘(2)(A) Not later than September 1 of each calendar

5 year, the Secretary shall—

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

7 Federal Old-Age and Survivors Insurance Trust

8 Fund and the Federal Disability Insurance Trust

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

10 the cessation of benefit payments during the fiscal

11 year ending on September 30 of the prior calendar

12 year based on continuing disability reviews carried

13 out pursuant to the requirements of section 221(i)

14 during or prior to such fiscal year,

15 ‘‘(ii) determine the portion of such estimate at16 tributable to each of the Trust Funds described in

17 clause (i), and

18 ‘‘(iii) certify the amount of such estimate and

19 such portion to the Managing Trustee of the Trust

20 Funds.

21 ‘‘(B) Upon receipt of certification by the Secretary

22 under subparagraph (A), the Managing Trustee shall

23 transfer to the Account from amounts otherwise in each

24 of the Trust Funds an amount equal to—
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1 ‘‘(i) for calendar years 1995 and 1996, 100

2 percent of the the portion of the estimated savings

3 computed under subparagraph (A)(i), attributable to

4 the Trust Fund (as certified under subparagraph

5 (A)(iii)), and

6 ‘‘(ii) for subsequent calendar years, the lesser

7 of—

8 ‘‘(I) 50 percent of the portion of the esti9 mated savings so certified, or

10 ‘‘(II) the difference (not less than $0) de11 rived by subtracting the balance in the Account

12 as of the end of the prior calendar year referred

13 to in subparagraph (A)(i) from the portion of

14 the estimated savings so certified.

15 ‘‘(3)(A) Not later than September 15 of each cal16 endar year, the Secretary shall—

17 ‘‘(i) estimate the total amount of expenditures

18 which will be necessary to carry out continuing dis19 ability reviews required under section 221(i) during

20 the fiscal year beginning on October 1 of such cal21 endar year, and

22 ‘‘(ii) certify such estimated amount to the Man23 aging Trustee of the Trust Funds.

24 ‘‘(B) The expenditures referred to in subparagraph

25 (A)(i) shall include, but not be limited to, the cost of staff-
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1 ing, training, purchase of medical and other evidence, and

2 processing related to appeals (including appeal hearings)

3 and to overpayments.

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

5 and prior to any action thereon by the General Accounting

6 Office, the Managing Trustee shall, upon the commence7 ment of each fiscal year, make available to the Secretary

8 from the Account an amount equal the total of estimated

9 expenditures for such fiscal year described in subpara10 graph (A)(i) as certified under subparagraph (A)(ii).

11 ‘‘(D) The Secretary shall use funds made available

12 pursuant to this paragraph solely for the purpose of carry13 ing out continuing disability reviews required under sec14 tion 221(i).’’.

15 (b) CONFORMING AMENDMENT.—Section

16 201(g)(1)(A) of such Act (42 U.S.C. 401(g)(1)(A)) is

17 amended in the last sentence by inserting ‘‘(other than

18 expenditures from available funds in the Continuing Dis19 ability Review Account in the Federal Disability Insurance

20 Trust Fund made pursuant to subsection (n))’’ after ‘‘is

21 responsible’’.

22 (c) ANNUAL REPORT.—Section 221(i)(3) of such Act

23 (42 U.S.C. 421(i)(3)) is amended—

24 (1) by striking ‘‘and the number’’ and inserting

25 ‘‘the number’’;
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1 (2) by striking the period at the end and insert2 ing a comma; and

3 (3) by adding at the end the following: ‘‘and a

4 final accounting of amounts transferred to the Con5 tinuing Disability Review Account in the Federal

6 Disability Insurance Trust Fund during the year,

7 the amount made available from such Account dur8 ing such year for continuing disability reviews, and

9 expenditures for continuing disability reviews made

10 during the year, including a comparison of such

11 number of reviews with the estimated number of re12 views upon which the estimate of such expenditures

13 was made under section 201(n)(3).’’.

14 SEC. 203. ISSUANCE OF PHYSICAL DOCUMENTS IN THE

15 FORM OF BONDS, NOTES, OR CERTIFICATES

16 TO THE SOCIAL SECURITY TRUST FUNDS.

17 (a) REQUIREMENT THAT OBLIGATIONS ISSUED TO

18 THE OASDI TRUST FUNDS BE EVIDENCED BY PAPER

19 INSTRUMENTS IN THE FORM OF BONDS, NOTES, OR CER20 TIFICATES OF INDEBTEDNESS SETTING FORTH THEIR

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

22 U.S.C. 401(d)) is amended by inserting after the fifth sen23 tence the following new sentence: ‘‘Each obligation issued

24 for purchase by the Trust Funds under this subsection

25 shall be evidenced by a paper instrument in the form of
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1 a bond, note, or certificate of indebtedness issued by the

2 Secretary of the Treasury setting forth the principal

3 amount, date of maturity, and interest rate of the obliga4 tion, and stating on its face that the obligation shall be

5 incontestable in the hands of the Trust Fund to which

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

7 faith and credit of the United States, and that the United

8 States is pledged to the payment of the obligation with

9 respect to both principal and interest.’’.

10 (b) PAYMENT TO THE OASDI TRUST FUNDS FROM

11 THE GENERAL FUND OF THE TREASURY OF INTEREST

12 ON OBLIGATIONS, AND OF PROCEEDS FROM THE SALE OR

13 REDEMPTION OF OBLIGATIONS, REQUIRED TO BE IN THE

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

15 U.S.C. 401(f)) is amended by adding at the end the follow16 ing new sentence: ‘‘Payment from the general fund of the

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

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

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

20 Fund.’’.

21 (c) EFFECTIVE DATE.—

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

23 this section shall apply with respect to obligations is24 sued, and payments made, after 60 days after the

25 date of the enactment of this Act.
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1 (2) TREATMENT OF OUTSTANDING OBLIGA2 TIONS.—Not later than 60 days after the date of the

3 enactment of this Act, the Secretary of the Treasury

4 shall issue to the Federal Old-Age and Survivors In5 surance Trust Fund or the Federal Disability Insur6 ance Trust Fund, as applicable, a paper instrument,

7 in the form of a bond, note, or certificate of indebt8 edness, for each obligation which has been issued to

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

10 Security Act and which is outstanding as of such

11 date. Each such document shall set forth the prin12 cipal amount, date of maturity, and interest rate of

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

14 obligation shall be incontestable in the hands of the

15 Trust Fund to which it was issued, that the obliga16 tion is supported by the full faith and credit of the

17 United States, and that the United States is pledged

18 to the payment of the obligation with respect to both

19 principal and interest.

20 SEC. 204. EXPLICIT REQUIREMENTS FOR MAINTENANCE OF

21 TELEPHONE ACCESS TO LOCAL OFFICES OF

22 THE SOCIAL SECURITY ADMINISTRATION.

23 (a) MAINTENANCE OF SERVICE TO LOCAL OF24 FICES.—
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1 (1) IN GENERAL.—Section 5110(a) of the Om2 nibus Budget Reconciliation Act of 1990 (104 Stat.

3 1388–272) is amended by adding at the end the fol4 lowing new sentence: ‘‘In carrying out the require5 ments of the preceding sentence, the Secretary shall

6 reestablish and maintain in service at least the same

7 number of telephone lines to each such local office

8 as was in place as of such date, including telephone

9 sets for connections to such lines.’’.

10 (2) EFFECTIVE DATE.—The Secretary of

11 Health and Human Services shall ensure that the

12 requirements of the amendment made by paragraph

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

14 date of the enactment of this Act.

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

16 the United States shall make an independent deter17 mination of the number of telephone lines to each

18 local office of the Social Security Administration

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

20 of this Act and shall report his findings to the Com21 mittee on Ways and Means of the House of Rep22 resentatives and the Committee on Finance of the

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

24 enactment of this Act.
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1 (b) MAINTENANCE OF TOLL-FREE TELEPHONE

2 NUMBER SERVICE.—The Secretary of Health and Human

3 Services shall ensure that toll-free telephone service pro4 vided by the Social Security Administration is maintained

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

6 date of the enactment of this Act.

7 SEC. 205. EXPANSION OF STATE OPTION TO EXCLUDE

8 SERVICE OF ELECTION OFFICIALS OR ELEC9 TION WORKERS FROM COVERAGE.

10 (a) LIMITATION ON MANDATORY COVERAGE OF

11 STATE ELECTION OFFICIALS AND ELECTION WORKERS

12 WITHOUT STATE RETIREMENT SYSTEM.—

13 (1) AMENDMENT TO SOCIAL SECURITY ACT.—

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

15 (42 U.S.C. 410(a)(7)(F)(iv)) (as amended by section

16 11332(a) of the Omnibus Budget Reconciliation Act

17 of 1990) is amended by striking ‘‘$100’’ and insert18 ing ‘‘$1,000 with respect to service performed dur19 ing 1995, and the adjusted amount determined

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

21 with respect to service performed during such subse22 quent year’’.

23 (2) AMENDMENT TO FICA.—Section

24 3121(b)(7)(F)(iv) of the Internal Revenue Code of

25 1986 (as amended by section 11332(b) of the Omni-
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1 bus Budget Reconciliation Act of 1990) is amended

2 by striking ‘‘$100’’ and inserting ‘‘$1,000 with re3 spect to service performed during 1995, and the

4 adjusted amount determined under section

5 218(c)(8)(B) of the Social Security Act for any sub6 sequent year with respect to service performed dur7 ing such subsequent year’’.

8 (b) CONFORMING AMENDMENTS RELATING TO MED9 ICARE QUALIFIED GOVERNMENT EMPLOYMENT.—

10 (1) AMENDMENT TO SOCIAL SECURITY ACT.—

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

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

13 ‘‘$100’’ and inserting ‘‘$1,000 with respect to serv14 ice performed during 1995, and the adjusted amount

15 determined under section 218(c)(8)(B) for any sub16 sequent year with respect to service performed dur17 ing such subsequent year’’.

18 (2) AMENDMENT TO FICA.—Section

19 3121(u)(2)(B)(ii)(V) of the Internal Revenue Code

20 of 1986 is amended by striking ‘‘$100’’ and insert21 ing ‘‘$1,000 with respect to service performed dur22 ing 1995, and the adjusted amount determined

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

24 Act for any subsequent year with respect to service

25 performed during such subsequent year’’.
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1 (c) AUTHORITY FOR STATES TO MODIFY COVERAGE

2 AGREEMENTS WITH RESPECT TO ELECTION OFFICIALS

3 AND ELECTION WORKERS.—Section 218(c)(8) of the So4 cial Security Act (42 U.S.C. 418(c)(8)) is amended—

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

6 and inserting ‘‘at any time’’;

7 (2) by striking ‘‘$100’’ and inserting ‘‘$1,000

8 with respect to service performed during 1995, and

9 the adjusted amount determined under subpara10 graph (B) for any subsequent year with respect to

11 service performed during such subsequent year’’;

12 and

13 (3) by striking the last sentence and inserting

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

15 agreement pursuant to this paragraph shall be effec16 tive with respect to services performed in and after

17 the calendar year in which the modification is mailed

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

19 (d) INDEXATION OF EXEMPT AMOUNT.—Section

20 218(c)(8) of such Act (as amended by subsection (c)) is

21 further amended—

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

23 (2) by adding at the end the following new sub24 paragraph:
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1 ‘‘(B) For each year after 1995, the Secretary shall

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

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

4 section 215(a)(1)(B)(ii) with respect to the amounts re5 ferred to in section 215(a)(1)(B)(i), except that—

6 ‘‘(i) for purposes of this subparagraph, 1993

7 shall be substituted for the calendar year referred to

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

9 ‘‘(ii) such amount as so adjusted, if not a mul10 tiple of $100, shall be rounded to the next higher

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

12 $50 and to the nearest multiple of $100 in any other

13 case.

14 The Secretary shall determine and publish in the Federal

15 Register each adjusted amount determined under this sub16 paragraph not later than November 1 preceding the year

17 for which the adjustment is made.’’.

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

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

20 service performed on or after January 1, 1995.
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1 SEC. 206. USE OF SOCIAL SECURITY NUMBERS BY STATES

2 AND LOCAL GOVERNMENTS AND FEDERAL

3 DISTRICT COURTS FOR JURY SELECTION

4 PURPOSES.

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

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

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

8 the matter preceding subclause (I) and inserting

9 ‘‘(F)’’;

10 (2) by redesignating subparagraphs (E) and

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

12 (3) by inserting after subparagraph (D) the fol13 lowing:

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

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

16 State) may utilize the social security account num17 bers issued by the Secretary for the additional pur18 poses described in clause (ii) if such numbers have

19 been collected and are otherwise utilized by such

20 State (or political subdivision) in accordance with

21 applicable law, and

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

23 may use, for such additional purposes, any such so24 cial security account numbers which have been so

25 collected and are so utilized by any State.
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1 ‘‘(ii) The additional purposes described in this clause

2 are the following:

3 ‘‘(I) identifying duplicate names of individuals

4 on master lists used for jury selection purposes, and

5 ‘‘(II) identifying on such master lists those indi6 viduals who are ineligible to serve on a jury by rea7 son of their conviction of a felony.

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

9 enacted before the date of the enactment of this subpara10 graph is inconsistent with the policy set forth in clause

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

12 void, and of no effect.

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

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

15 (D).’’.

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

17 subsection (a) shall take effect on the date of the enact18 ment of this Act.

19 SEC. 207. AUTHORIZATION FOR ALL STATES TO EXTEND

20 COVERAGE TO STATE AND LOCAL POLICE21 MEN AND FIREMEN UNDER EXISTING COV22 ERAGE AGREEMENTS.

23 (a) IN GENERAL.—Section 218(l) of the Social Secu24 rity Act (42 U.S.C. 418(l)) is amended—
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1 (1) in paragraph (1), by striking ‘‘(1)’’ after

2 ‘‘(l)’’, and by striking ‘‘the State of’’ and all that fol3 lows through ‘‘prior to the date of enactment of this

4 subsection’’ and inserting ‘‘a State entered into pur5 suant to this section’’; and

6 (2) by striking paragraph (2).

7 (b) CONFORMING AMENDMENT.—Section

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

9 amended by striking ‘‘agreements with the States named

10 in’’ and inserting ‘‘State agreements modified as provided

11 in’’.

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

13 this section shall apply with respect to modifications filed

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

15 SEC. 208. LIMITED EXEMPTION FOR CANADIAN MINISTERS

16 FROM CERTAIN SELF-EMPLOYMENT TAX LI17 ABILITY.

18 (a) IN GENERAL.—Notwithstanding any other provi19 sion of law, if—

20 (1) an individual performed services described

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

22 of 1986 which are subject to tax under section 1401

23 of such Code,

24 (2) such services were performed in Canada at

25 a time when no agreement between the United
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1 States and Canada pursuant to section 233 of the

2 Social Security Act was in effect, and

3 (3) such individual was required to pay con4 tributions on the earnings from such services under

5 the social insurance system of Canada,

6 then such individual may file a certificate under this sec7 tion in such form and manner, and with such official, as

8 may be prescribed in regulations issued under chapter 2

9 of such Code. Upon the filing of such certificate, notwith10 standing any judgment which has been entered to the con11 trary, such individual shall be exempt from payment of

12 such tax with respect to services described in paragraphs

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

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

15 as required under section 6017 of such Code.

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

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

18 period commencing with the date on which the regulations

19 referred to in subsection (a) are issued.

20 (c) TAXABLE YEARS AFFECTED BY CERTIFICATE.—

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

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

23 before January 1, 1985.

24 (d) RESTRICTION ON CREDITING OF EXEMPT SELF25 EMPLOYMENT INCOME.—In any case in which an individ-
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1 ual is exempt under this section from paying a tax im2 posed under section 1401 of the Internal Revenue Code

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

4 imposed but for such exemption shall not constitute self5 employment income under section 211(b) of the Social Se6 curity Act (42 U.S.C. 411(b)), and, if such individual’s

7 primary insurance amount has been determined under sec8 tion 215 of such Act (42 U.S.C. 415), notwithstanding

9 section 215(f)(1) of such Act, the Secretary of Health and

10 Human Services shall recompute such primary insurance

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

12 subsection. The recomputation under this subsection shall

13 be effective with respect to benefits for months following

14 approval of the certificate of exemption.

15 SEC. 209. EXCLUSION OF TOTALIZATION BENEFITS FROM

16 THE APPLICATION OF THE WINDFALL ELIMI17 NATION PROVISION.

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

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

20 (1) in subparagraph (A), by striking ‘‘but ex21 cluding’’ and all that follows through ‘‘1937’’ and

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

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

24 a payment by a social security system of a foreign

25 country based on an agreement concluded between
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1 the United States and such foreign country pursuant

2 to section 233’’; and

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

4 the case of an individual’’ the following: ‘‘whose eli5 gibility for old-age or disability insurance benefits is

6 based on an agreement concluded pursuant to sec7 tion 233 or an individual’’.

8 (b) CONFORMING AMENDMENT RELATING TO BENE9 FITS UNDER 1939 ACT.—Section 215(d)(3) of such Act

10 (42 U.S.C. 415(d)(3)) is amended by striking ‘‘but exclud11 ing’’ and all that follows through ‘‘1937’’ and inserting

12 ‘‘but excluding (I) a payment under the Railroad Retire13 ment Act of 1974 or 1937, and (II) a payment by a social

14 security system of a foreign country based on an agree15 ment concluded between the United States and such for16 eign country pursuant to section 233’’.

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

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

19 of the Social Security Act (42 U.S.C. 415(f)(1))) with re20 spect to benefits payable for months after January 1995.
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1 SEC. 210. EXCLUSION OF MILITARY RESERVISTS FROM AP2 PLICATION OF THE GOVERNMENT PENSION

3 OFFSET AND WINDFALL ELIMINATION PROVI4 SIONS.

5 (a) EXCLUSION FROM GOVERNMENT PENSION OFF6 SET PROVISIONS.—Subsections (b)(4), (c)(2), (e)(7),

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

8 (42 U.S.C. 402 (b)(4), (c)(2), (e)(7), (f)(2), and (g)(4))

9 are each amended—

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

11 subparagraph (B) applies.’’;

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

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

14 subparagraph (B) applies. The’’; and

15 (3) in subparagraph (B), by redesignating the

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

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

18 ‘‘(B)(i) Subparagraph (A)(i) shall not apply with re19 spect to monthly periodic benefits based wholly on service

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

21 210(m)).’’.

22 (b) EXCLUSION FROM WINDFALL ELIMINATION

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

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

25 215(d)(3) of such Act (as amended by section 210(b) of

26 this Act) are each further amended—
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1 (1) by striking ‘‘and’’ before ‘‘(II)’’; and

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

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

4 service as a member of a uniformed service (as de5 fined in section 210(m))’’.

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

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

8 the Social Security Act) with respect to benefits payable

9 for months after January 1995.

10 SEC. 211. REPEAL OF THE FACILITY-OF-PAYMENT PROVI11 SION.

12 (a) REPEAL OF RULE PRECLUDING REDISTRIBUTION

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

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

15 (b) COORDINATION UNDER FAMILY MAXIMUM OF

16 REDUCTION IN BENEFICIARY’S AUXILIARY BENEFITS

17 WITH SUSPENSION OF AUXILIARY BENEFITS OF OTHER

18 BENEFICIARY UNDER EARNINGS TEST.—Section

19 203(a)(4) of such Act (42 U.S.C. 403(a)(4)) is amended

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

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

22 sentence, any reduction under this subsection in the case

23 of an individual who is entitled to a benefit under sub24 section (b), (c), (d), (e), (f), (g), or (h) of section 202 for
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1 any month on the basis of the same wages and self-em2 ployment income as another person—

3 ‘‘(A) who also is entitled to a benefit under sub4 section (b), (c), (d), (e), (f), (g), or (h) of section

5 202 for such month,

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

7 as such individual, and

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

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

10 of this section,

11 shall be made before the suspension under subsection

12 (h)(3). Whenever’’.

13 (c) CONFORMING AMENDMENT APPLYING EARNINGS

14 REPORTING REQUIREMENT DESPITE SUSPENSION OF

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

16 of such Act (42 U.S.C. 403(h)(1)(A)) is amended by strik17 ing ‘‘Such report need not be made’’ and all that follows

18 through ‘‘The Secretary may grant’’ and inserting the fol19 lowing: ‘‘Such report need not be made for any taxable

20 year—

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

22 such individual attained age 70, or

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

24 taxable year) in which such individual is under age

25 70 have been suspended under the provisions of the
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1 first sentence of paragraph (3) of this subsection,

2 unless—

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

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

5 (h) of section 202,

6 ‘‘(II) such benefits are reduced under sub7 section (a) of this section for any month in such

8 taxable year, and

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

10 person who also is entitled to benefits under

11 subsection (b), (c), (d), (e), (f), (g), or (h) of

12 section 202 on the basis of the same wages and

13 self-employment income and who does not live

14 in the same household as such individual.

15 The Secretary may grant’’.

16 (d) CONFORMING AMENDMENT DELETING SPECIAL

17 INCOME TAX TREATMENT OF BENEFITS NO LONGER RE18 QUIRED BY REASON OF REPEAL.—Section 86(d)(1) of the

19 Internal Revenue Code of 1986 (relating to income tax

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

21 sentence.

22 (e) EFFECTIVE DATES.—

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

24 (b), and (c) shall apply with respect to benefits pay25 able for months after December 1995.
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1 (2) The amendment made by subsection (d)

2 shall apply with respect to benefits received after

3 December 31, 1995, in taxable years ending after

4 such date.

5 SEC. 212. MAXIMUM FAMILY BENEFITS IN GUARANTEE

6 CASES.

7 (a) IN GENERAL.—Section 203(a) of the Social Secu8 rity Act (42 U.S.C. 403(a)) is amended by adding at the

9 end the following new paragraph:

10 ‘‘(10)(A) Subject to subparagraphs (B) and (C)—

11 ‘‘(i) the total monthly benefits to which bene12 ficiaries may be entitled under sections 202 and 223

13 for a month on the basis of the wages and self-em14 ployment income of an individual whose primary in15 surance amount is computed under section

16 215(a)(2)(B)(i) shall equal the total monthly bene17 fits which were authorized by this section with re18 spect to such individual’s primary insurance amount

19 for the last month of his prior entitlement to disabil20 ity insurance benefits, increased for this purpose by

21 the general benefit increases and other increases

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

23 total monthly benefits had the individual remained

24 entitled to disability insurance benefits until the

25 month in which he became entitled to old-age insur-
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1 ance benefits or reentitled to disability insurance

2 benefits or died, and

3 ‘‘(ii) the total monthly benefits to which bene4 ficiaries may be entitled under sections 202 and 223

5 for a month on the basis of the wages and self-em6 ployment income of an individual whose primary in7 surance amount is computed under section

8 215(a)(2)(C) shall equal the total monthly benefits

9 which were authorized by this section with respect to

10 such individual’s primary insurance amount for the

11 last month of his prior entitlement to disability in12 surance benefits.

13 ‘‘(B) In any case in which—

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

15 such individual’s primary insurance amount for the

16 last month of his prior entitlement to disability in17 surance benefits was computed under paragraph (6),

18 and

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

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

21 section 215(a)(2) by reason of the individual’s enti22 tlement to old-age insurance benefits or death,

23 the total monthly benefits shall equal the total monthly

24 benefits that would have been authorized with respect to

25 the primary insurance amount for the last month of his
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1 prior entitlement to disability insurance benefits if such

2 total monthly benefits had been computed without regard

3 to paragraph (6).

4 ‘‘(C) This paragraph shall apply before the applica5 tion of paragraph (3)(A), and before the application of

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

7 1978.’’.

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

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

10 ‘‘Subject to paragraph (7),’’ and inserting ‘‘Subject to

11 paragraph (7) and except as otherwise provided in para12 graph (10)(C),’’.

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

14 this section shall apply for the purpose of determining the

15 total monthly benefits to which beneficiaries may be enti16 tled under sections 202 and 223 of the Social Security

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

18 an individual who—

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

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

21 (2) becomes reentitled to a disability insurance

22 benefit under section 223 of such Act, or

23 (3) dies,

24 after January 1995.
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1 SEC. 213. AUTHORIZATION FOR DISCLOSURE BY THE SEC2 RETARY OF HEALTH AND HUMAN SERVICES

3 OF INFORMATION FOR PURPOSES OF PUBLIC

4 OR PRIVATE EPIDEMIOLOGICAL AND SIMI5 LAR RESEARCH.

6 (a) IN GENERAL.—Section 1106 of the Social Secu7 rity Act (42 U.S.C. 1306) is amended—

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

9 subsections (e) and (f), respectively;

10 (2) in subsection (f) (as so redesignated), by

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

12 (e)’’; and

13 (3) by inserting after subsection (c) the follow14 ing new subsection:

15 ‘‘(d) Notwithstanding any other provision of this sec16 tion, in any case in which—

17 ‘‘(1) information regarding whether an individ18 ual is shown on the records of the Secretary as

19 being alive or deceased is requested from the Sec20 retary for purposes of epidemiological or similar re21 search which the Secretary finds may reasonably be

22 expected to contribute to a national health interest,

23 and

24 ‘‘(2) the requester agrees to reimburse the Sec25 retary for providing such information and to comply

26 with limitations on safeguarding and rerelease or
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1 redisclosure of such information as may be specified

2 by the Secretary,

3 the Secretary shall comply with such request, except to

4 the extent that compliance with such request would con5 stitute a violation of the terms of any contract entered

6 into under section 205(r).’’.

7 (b) AVAILABILITY OF INFORMATION RETURNS RE8 GARDING WAGES PAID EMPLOYEES.—Section 6103(l)(5)

9 of the Internal Revenue Code of 1986 (relating to disclo10 sure of returns and return information to the Department

11 of Health and Human Services for purposes other than

12 tax administration) is amended—

13 (1) by striking ‘‘for the purpose of’’ and insert14 ing ‘‘for the purpose of—’’;

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

16 with an agreement’’ and inserting the following:

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

18 agreement’’;

19 (3) by striking ‘‘program.’’ and inserting ‘‘pro20 gram; or’’; and

21 (4) by adding at the end the following new sub22 paragraph:

23 ‘‘(B) providing information regarding the

24 mortality status of individuals for epidemiolog-
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1 ical and similar research in accordance with

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

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

4 this section shall apply with respect to requests for infor5 mation made after the date of the enactment of this Act.

6 SEC. 214. MISUSE OF SYMBOLS, EMBLEMS, OR NAMES IN

7 REFERENCE TO SOCIAL SECURITY PRO8 GRAMS AND AGENCIES.

9 (a) PROHIBITION OF UNAUTHORIZED REPRODUC10 TION, REPRINTING, OR DISTRIBUTION FOR FEE OF CER11 TAIN OFFICIAL PUBLICATIONS.—Section 1140(a) of the

12 Social Security Act (42 U.S.C. 1320b–10(a)) is amend13 ed—

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

15 subparagraphs (A) and (B), respectively;

16 (2) by inserting ‘‘(1)’’ after ‘‘(a)’’; and

17 (3) by adding at the end the following new

18 paragraph:

19 ‘‘(2) No person may, for a fee, reproduce, reprint,

20 or distribute any item consisting of a form, application,

21 or other publication of the Social Security Administration

22 unless such person has obtained specific, written author23 ization for such activity in accordance with regulations

24 which the Secretary shall prescribe.’’.
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1 (b) ADDITION TO PROHIBITED WORDS, LETTERS,

2 SYMBOLS, AND EMBLEMS.—Paragraph (1) of section

3 1140(a) of such Act (as redesignated by subsection (a))

4 is further amended—

5 (1) in subparagraph (A) (as redesignated), by

6 striking ‘‘Administration’, the letters ‘SSA’ or

7 ‘HCFA’,’’ and inserting ‘‘Administration’, ‘Depart8 ment of Health and Human Services’, ‘Health and

9 Human Services’, ‘Supplemental Security Income

10 Program’, or ‘Medicaid’, the letters ‘SSA’, ‘HCFA’,

11 ‘DHHS’, ‘HHS’, or ‘SSI’,’’; and

12 (2) in subparagraph (B) (as redesignated), by

13 striking ‘‘Social Security Administration’’ each place

14 it appears and inserting ‘‘Social Security Adminis15 tration, Health Care Financing Administration, or

16 Department of Health and Human Services’’, and

17 by striking ‘‘or of the Health Care Financing Ad18 ministration’’.

19 (c) EXEMPTION FOR USE OF WORDS, LETTERS,

20 SYMBOLS, AND EMBLEMS OF STATE AND LOCAL GOV21 ERNMENT AGENCIES BY SUCH AGENCIES.—Paragraph

22 (1) of section 1140(a) of such Act (as redesignated by sub23 section (a)) is further amended by adding at the end the

24 following new sentence: ‘‘The preceding provisions of this

25 subsection shall not apply with respect to the use by any
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1 agency or instrumentality of a State or political subdivi2 sion of a State of any words or letters which identify an

3 agency or instrumentality of such State or of a political

4 subdivision of such State or the use by any such agency

5 or instrumentality of any symbol or emblem of an agency

6 or instrumentality of such State or a political subdivision

7 of such State.’’.

8 (d) INCLUSION OF REASONABLENESS STANDARD.—

9 Section 1140(a)(1) of such Act (as amended by the pre10 ceding provisions of this section) is further amended, in

11 the matter following subparagraph (B) (as redesignated),

12 by striking ‘‘convey’’ and inserting ‘‘convey, or in a man13 ner which reasonably could be interpreted or construed as

14 conveying,’’.

15 (e) INEFFECTIVENESS OF DISCLAIMERS.—Sub16 section (a) of section 1140 of such Act (as amended by

17 the preceding provisions of this section) is further amend18 ed by adding at the end the following new paragraph:

19 ‘‘(3) Any determination of whether the use of one or

20 more words, letters, symbols, or emblems (or any combina21 tion or variation thereof) in connection with an item de22 scribed in paragraph (1) or the reproduction, reprinting,

23 or distribution of an item described in paragraph (2) is

24 a violation of this subsection shall be made without regard

25 to any inclusion in such item (or any so reproduced, re-
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1 printed, or distributed copy thereof) of a disclaimer of af2 filiation with the United States Government or any par3 ticular agency or instrumentality thereof.’’.

4 (f) VIOLATIONS WITH RESPECT TO INDIVIDUAL

5 ITEMS.—Section 1140(b)(1) of such Act (42 U.S.C.

6 1320b–10(b)(1)) is amended by adding at the end the fol7 lowing new sentence: ‘‘In the case of any items referred

8 to in subsection (a)(1) consisting of pieces of mail, each

9 such piece of mail which contains one or more words, let10 ters, symbols, or emblems in violation of subsection (a)

11 shall represent a separate violation. In the case of any

12 item referred to in subsection (a)(2), the reproduction, re13 printing, or distribution of such item shall be treated as

14 a separate violation with respect to each copy thereof so

15 reproduced, reprinted, or distributed.’’.

16 (g) ELIMINATION OF CAP ON AGGREGATE LIABILITY

17 AMOUNT.—

18 (1) REPEAL.—Paragraph (2) of section 1140(b)

19 of such Act (42 U.S.C. 1320b–10(b)(2)) is repealed.

20 (2) CONFORMING AMENDMENTS.—Section

21 1140(b) of such Act is further amended—

22 (A) by striking ‘‘(1) Subject to paragraph

23 (2), the’’ and inserting ‘‘The’’;
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1 (B) by redesignating subparagraphs (A)

2 and (B) as paragraphs (1) and (2), respectively;

3 and

4 (C) in paragraph (1) (as redesignated), by

5 striking ‘‘subparagraph (B)’’ and inserting

6 ‘‘paragraph (2)’’.

7 (h) REMOVAL OF FORMAL DECLINATION REQUIRE8 MENT.—Section 1140(c)(1) of such Act (42 U.S.C.

9 1320b–10(c)(1)) is amended by inserting ‘‘and the first

10 sentence of subsection (c)’’ after ‘‘and (i)’’.

11 (i) PENALTIES RELATING TO SOCIAL SECURITY AD12 MINISTRATION DEPOSITED IN OASI TRUST FUND.—Sec13 tion 1140(c)(2) of such Act (42 U.S.C. 1320b–10(c)(2))

14 is amended in the second sentence by striking ‘‘United

15 States.’’ and inserting ‘‘United States, except that, to the

16 extent that such amounts are recovered under this section

17 as penalties imposed for misuse of words, letters, symbols,

18 or emblems relating to the Social Security Administration,

19 such amounts shall be deposited into the Federal Old-Age

20 and Survivor’s Insurance Trust Fund.’’.

21 (j) ENFORCEMENT.—Section 1140 of such Act (42

22 U.S.C. 1320b–10) is amended by adding at the end the

23 following new subsection:
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1 ‘‘(d) The preceding provisions of this section shall be

2 enforced through the Office of Inspector General of the

3 Department of Health and Human Services.’’.

4 (k) ANNUAL REPORTS.—Section 1140 of such Act

5 (as amended by the preceding provisions of this section)

6 is further amended by adding at the end the following new

7 subsection:

8 ‘‘(e) The Secretary shall include in the annual report

9 submitted pursuant to section 704 a report on the oper10 ation of this section during the year covered by such an11 nual report. Such report shall specify—

12 ‘‘(1) the number of complaints of violations of

13 this section received by the Social Security Adminis14 tration during the year,

15 ‘‘(2) the number of cases in which a notice of

16 violation of this section was sent by the Social Secu17 rity Administration during the year requesting that

18 an individual cease activities in violation of this sec19 tion,

20 ‘‘(3) the number of complaints of violations of

21 this section referred by the Social Security Adminis22 tration to the Inspector General in the Department

23 of Health and Human Services during the year,
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1 ‘‘(4) the number of investigations of violations

2 of this section undertaken by the Inspector General

3 during the year,

4 ‘‘(5) the number of cases in which a demand

5 letter was sent during the year assessing a civil

6 money penalty under this section,

7 ‘‘(6) the total amount of civil money penalties

8 assessed under this section during the year,

9 ‘‘(7) the number of requests for hearings filed

10 during the year pursuant to subsection (c)(1) of this

11 section and section 1128A(c)(2),

12 ‘‘(8) the disposition during such year of hear13 ings filed pursuant to sections 1140(c)(1) and

14 1128A(c)(2), and

15 ‘‘(9) the total amount of civil money penalties

16 under this section deposited into the Federal Old17 Age and Survivors Insurance Trust Fund during the

18 year.’’.

19 (l) PROHIBITION OF MISUSE OF DEPARTMENT OF

20 THE TREASURY NAMES, SYMBOLS, ETC.—

21 (1) GENERAL RULE.—Subchapter II of chapter

22 3 of title 31, United States Code, is amended by

23 adding at the end thereof the following new section:
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1 ‘‘§ 333. Prohibition of misuse of Department of the

2 Treasury names, symbols, etc.

3 ‘‘(a) GENERAL RULE.—No person may use, in con4 nection with, or as a part of, any advertisement, solicita5 tion, business activity, or product, whether alone or with

6 other words, letters, symbols, or emblems—

7 ‘‘(1) the words ‘Department of the Treasury’,

8 or the name of any service, bureau, office, or other

9 subdivision of the Department of the Treasury,

10 ‘‘(2) the titles ‘Secretary of the Treasury’ or

11 ‘Treasurer of the United States’ or the title of any

12 other officer or employee of the Department of the

13 Treasury,

14 ‘‘(3) the abbreviations or initials of any entity

15 referred to in paragraph (1),

16 ‘‘(4) the words ‘United States Savings Bond’ or

17 the name of any other obligation issued by the De18 partment of the Treasury,

19 ‘‘(5) any symbol or emblem of an entity re20 ferred to in paragraph (1) (including the design of

21 any envelope or stationary used by such an entity),

22 and

23 ‘‘(6) any colorable imitation of any such words,

24 titles, abbreviations, initials, symbols, or emblems,

25 in a manner which could reasonably be interpreted or con26 strued as conveying the false impression that such adver-
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1 tisement, solicitation, business activity, or product is in

2 any manner approved, endorsed, sponsored, or authorized

3 by, or associated with, the Department of the Treasury

4 or any entity referred to in paragraph (1) or any officer

5 or employee thereof.

6 ‘‘(b) TREATMENT OF DISCLAIMERS.—Any deter7 mination of whether a person has violated the provisions

8 of subsection (a) shall be made without regard to any use

9 of a disclaimer of affiliation with the United States Gov10 ernment or any particular agency or instrumentality there11 of.

12 ‘‘(c) CIVIL PENALTY.—

13 ‘‘(1) IN GENERAL.—The Secretary of the

14 Treasury may impose a civil penalty on any person

15 who violates the provisions of subsection (a).

16 ‘‘(2) AMOUNT OF PENALTY.—The amount of

17 the civil penalty imposed by paragraph (1) shall not

18 exceed $5,000 for each use of any material in viola19 tion of subsection (a). If such use is in a broadcast

20 or telecast, the preceding sentence shall be applied

21 by substituting ‘$25,000’ for ‘$5,000’.

22 ‘‘(3) TIME LIMITATIONS.—

23 ‘‘(A) ASSESSMENTS.—The Secretary of the

24 Treasury may assess any civil penalty under

25 paragraph (1) at any time before the end of the
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1 3-year period beginning on the date of the vio2 lation with respect to which such penalty is im3 posed.

4 ‘‘(B) CIVIL ACTION.—The Secretary of the

5 Treasury may commence a civil action to re6 cover any penalty imposed under this subsection

7 at any time before the end of the 2-year period

8 beginning on the date on which such penalty

9 was assessed.

10 ‘‘(4) COORDINATION WITH SUBSECTION (d).—

11 No penalty may be assessed under this subsection

12 with respect to any violation after a criminal pro13 ceeding with respect to such violation has been com14 menced under subsection (d).

15 ‘‘(d) CRIMINAL PENALTY.—

16 ‘‘(1) IN GENERAL.—If any person knowingly

17 violates subsection (a), such person shall, upon con18 viction thereof, be fined not more than $10,000 for

19 each such use or imprisoned not more than 1 year,

20 or both. If such use is in a broadcast or telecast, the

21 preceding sentence shall be applied by substituting

22 ‘$50,000’ for ‘$10,000’.

23 ‘‘(2) TIME LIMITATIONS.—No person may be

24 prosecuted, tried, or punished under paragraph (1)

25 for any violation of subsection (a) unless the indict-
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1 ment is found or the information instituted during

2 the 3-year period beginning on the date of the viola3 tion.

4 ‘‘(3) COORDINATION WITH SUBSECTION (c).—

5 No criminal proceeding may be commenced under

6 this subsection with respect to any violation if a civil

7 penalty has previously been assessed under sub8 section (c) with respect to such violation.’’

9 (2) CLERICAL AMENDMENT.—The analysis for

10 chapter 3 of title 31, United States Code, is amend11 ed by adding after the item relating to section 332

12 the following new item:

‘‘333. Prohibition of misuse of Department of the Treasury names, symbols,

etc.’’.

13 (3) REPORT.—Not later than May 1, 1996, the

14 Secretary of the Treasury shall submit a report to

15 the Committee on Ways and Means of the House of

16 Representatives and the Committee on Finance of

17 the Senate on the implementation of the amend18 ments made by this section. Such report shall in19 clude the number of cases in which the Secretary

20 has notified persons of violations of section 333 of

21 title 31, United States Code (as added by subsection

22 (a)), the number of prosecutions commenced under

23 such section, and the total amount of the penalties

24 collected in such prosecutions.
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1 (m) EFFECTIVE DATE.—The amendments made by

2 this section shall apply with respect to violations occurring

3 after the date of the enactment of this Act.

4 SEC. 215. INCREASED PENALTIES FOR UNAUTHORIZED DIS5 CLOSURE OF SOCIAL SECURITY INFORMA6 TION.

7 (a) UNAUTHORIZED DISCLOSURE.—Section 1106(a)

8 of the Social Security Act (42 U.S.C. 1306(a)) is amend9 ed—

10 (1) by striking ‘‘misdemeanor’’ and inserting

11 ‘‘felony’’;

12 (2) by striking ‘‘$1,000’’ and inserting

13 ‘‘$10,000 for each occurrence of a violation’’; and

14 (3) by striking ‘‘one year’’ and inserting ‘‘5

15 years’’.

16 (b) UNAUTHORIZED DISCLOSURE BY FRAUD.—Sec17 tion 1107(b) of such Act (42 U.S.C. 1307(b)) is amend18 ed—

19 (1) by inserting ‘‘social security account num20 ber,’’ after ‘‘information as to the’’;

21 (2) by striking ‘‘misdemeanor’’ and inserting

22 ‘‘felony’’;

23 (3) by striking ‘‘$1,000’’ and inserting

24 ‘‘$10,000 for each occurrence of a violation’’; and
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1 (4) by striking ‘‘one year’’ and inserting ‘‘5

2 years’’.

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

4 this section shall apply to violations occurring on or after

5 the date of the enactment of this Act.

6 SEC. 216. INCREASE IN AUTHORIZED PERIOD FOR EXTEN7 SION OF TIME TO FILE ANNUAL EARNINGS

8 REPORT.

9 (a) IN GENERAL.—Section 203(h)(1)(A) of the Social

10 Security Act (42 U.S.C. 403(h)(1)(A)) is amended in the

11 last sentence by striking ‘‘three months’’ and inserting

12 ‘‘four months’’.

13 (b) EFFECTIVE DATE.—The amendment made by

14 subsection (a) shall apply with respect to reports of earn15 ings for taxable years ending on or after December 31,

16 1994.

17 SEC. 217. EXTENSION OF DISABILITY INSURANCE PRO18 GRAM DEMONSTRATION PROJECT AUTHOR19 ITY.

20 (a) IN GENERAL.—Section 505 of the Social Security

21 Disability Amendments of 1980 (Public Law 96–265), as

22 amended by section 12101 of the Consolidated Omnibus

23 Budget Reconciliation Act of 1985 (Public Law 99–272),

24 section 10103 of the Omnibus Budget Reconciliation Act

25 of 1989 (Public Law 101–239), and section 5120 of the
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1 Omnibus Budget Reconciliation Act of 1990 (Public Law

2 101–508) is further amended—

3 (1) in paragraph (3) of subsection (a), by strik4 ing ‘‘June 10, 1993’’ and inserting ‘‘June 10,

5 1996’’;

6 (2) in paragraph (4) of subsection (a), by strik7 ing ‘‘1992’’ and inserting ‘‘1995’’; and

8 (3) in subsection (c), by striking ‘‘October 1,

9 1993’’ and inserting ‘‘October 1, 1996’’.

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

11 this section shall take effect on the date of the enactment

12 of this Act.

13 SEC. 218. CROSS-MATCHING OF SOCIAL SECURITY AC14 COUNT NUMBER INFORMATION AND EM15 PLOYER IDENTIFICATION NUMBER INFORMA16 TION MAINTAINED BY THE DEPARTMENT OF

17 AGRICULTURE.

18 (a) SOCIAL SECURITY ACCOUNT NUMBER INFORMA19 TION.—Clause (iii) of section 205(c)(2)(C) of the Social

20 Security Act (42 U.S.C. 405(c)(2)(C)) (as added by sec21 tion 1735(a)(3) of the Food, Agriculture, Conservation,

22 and Trade Act of 1990 (Public Law 101–624; 104 Stat.

23 3791)) is amended—

24 (1) by inserting ‘‘(I)’’ after ‘‘(iii)’’; and
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1 (2) by striking ‘‘The Secretary of Agriculture

2 shall restrict’’ and all that follows and inserting the

3 following:

4 ‘‘(II) The Secretary of Agriculture may share any in5 formation contained in any list referred to in subclause

6 (I) with any other agency or instrumentality of the United

7 States which otherwise has access to social security ac8 count numbers in accordance with this subsection or other

9 applicable Federal law, except that the Secretary of Agri10 culture may share such information only to the extent that

11 such Secretary determines such sharing would assist in

12 verifying and matching such information against informa13 tion maintained by such other agency or instrumentality.

14 Any such information shared pursuant to this subclause

15 may be used by such other agency or instrumentality only

16 for the purpose of effective administration and enforce17 ment of the Food Stamp Act of 1977 or for the purpose

18 of investigation of violations of other Federal laws or en19 forcement of such laws.

20 ‘‘(III) The Secretary of Agriculture, and the head of

21 any other agency or instrumentality referred to in this

22 subclause, shall restrict, to the satisfaction of the Sec23 retary of Health and Human Services, access to social se24 curity account numbers obtained pursuant to this clause

25 only to officers and employees of the United States whose
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1 duties or responsibilities require access for the purposes

2 described in subclause (II).

3 ‘‘(IV) The Secretary of Agriculture, and the head of

4 any agency or instrumentality with which information is

5 shared pursuant to clause (II), shall provide such other

6 safeguards as the Secretary of Health and Human Serv7 ices determines to be necessary or appropriate to protect

8 the confidentiality of the social security account

9 numbers.’’.

10 (b) EMPLOYER IDENTIFICATION NUMBER INFORMA11 TION.—Subsection (f) of section 6109 of the Internal Rev12 enue Code of 1986 (as added by section 1735(c) of the

13 Food, Agriculture, Conservation, and Trade Act of 1990

14 (Public Law 101–624; 104 Stat. 3792)) (relating to access

15 to employer identification numbers by Secretary of Agri16 culture for purposes of Food Stamp Act of 1977) is

17 amended—

18 (1) by striking paragraph (2) and inserting the

19 following:

20 ‘‘(2) SHARING OF INFORMATION AND SAFE21 GUARDS.—

22 ‘‘(A) SHARING OF INFORMATION.—The

23 Secretary of Agriculture may share any infor24 mation contained in any list referred to in para25 graph (1) with any other agency or instrumen-
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1 tality of the United States which otherwise has

2 access to employer identification numbers in ac3 cordance with this section or other applicable

4 Federal law, except that the Secretary of Agri5 culture may share such information only to the

6 extent that such Secretary determines such

7 sharing would assist in verifying and matching

8 such information against information main9 tained by such other agency or instrumentality.

10 Any such information shared pursuant to this

11 subparagraph may be used by such other agen12 cy or instrumentality only for the purpose of ef13 fective administration and enforcement of the

14 Food Stamp Act of 1977 or for the purpose of

15 investigation of violations of other Federal laws

16 or enforcement of such laws.

17 ‘‘(B) SAFEGUARDS.—The Secretary of Ag18 riculture, and the head of any other agency or

19 instrumentality referred to in subparagraph

20 (A), shall restrict, to the satisfaction of the Sec21 retary of the Treasury, access to employer iden22 tification numbers obtained pursuant to this

23 subsection only to officers and employees of the

24 United States whose duties or responsibilities

25 require access for the purposes described in
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1 subparagraph (A). The Secretary of Agri2 culture, and the head of any agency or instru3 mentality with which information is shared pur4 suant to subparagraph (A), shall provide such

5 other safeguards as the Secretary of the Treas6 ury determines to be necessary or appropriate

7 to protect the confidentiality of the employer

8 identification numbers.’’;

9 (2) in paragraph (3), by striking ‘‘by the Sec10 retary of Agriculture pursuant to this subsection’’

11 and inserting ‘‘pursuant to this subsection by the

12 Secretary of Agriculture or the head of any agency

13 or instrumentality with which information is shared

14 pursuant to paragraph (2)’’, and by striking ‘‘social

15 security account numbers’’ and inserting ‘‘employer

16 identification numbers’’; and

17 (3) in paragraph (4), by striking ‘‘by the Sec18 retary of Agriculture pursuant to this subsection’’

19 and inserting ‘‘pursuant to this subsection by the

20 Secretary of Agriculture or any agency or instru21 mentality with which information is shared pursuant

22 to paragraph (2)’’.
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1 SEC. 219. CERTAIN TRANSFERS TO RAILROAD RETIREMENT

2 ACCOUNT MADE PERMANENT.

3 Subsection (c)(1)(A) of section 224 of the Railroad

4 Retirement Solvency Act of 1983 (relating to section 72(r)

5 revenue increase transferred to certain railroad accounts)

6 is amended by striking ‘‘with respect to benefits received

7 before October 1, 1992’’.

8 SEC. 220. AUTHORIZATION FOR USE OF SOCIAL SECURITY

9 ACCOUNT NUMBERS BY DEPARTMENT OF

10 LABOR IN ADMINISTRATION OF FEDERAL

11 WORKERS’ COMPENSATION LAWS.

12 Section 205(c)(2)(C) of the Social Security Act (42

13 U.S.C. 405(c)(2)(C)) is amended by adding at the end the

14 following new clause:

15 ‘‘(ix) In the administration of the provisions of chap16 ter 81 of title 5, United States Code, and the Longshore

17 and Harbor Workers’ Compensation Act (33 U.S.C. 901

18 et seq.), the Secretary of Labor may require by regulation

19 that any person filing a notice of injury or a claim for

20 benefits under such provisions provide as part of such no21 tice or claim such person’s social security account number,

22 subject to the requirements of this clause. No officer or

23 employee of the Department of Labor shall have access

24 to any such number for any purpose other than the estab25 lishment of a system of records necessary for the effective

26 administration of such provisions. The Secretary of Labor
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1 shall restrict, to the satisfaction of the Secretary of Health

2 and Human Services, access to social security account

3 numbers obtained pursuant to this clause to officers and

4 employees of the United States whose duties or respon5 sibilities require access for the administration or enforce6 ment of such provisions. The Secretary of Labor shall pro7 vide such other safeguards as the Secretary of Health and

8 Human Services determines to be necessary or appropriate

9 to protect the confidentiality of the social security account

10 numbers.’’.

11 SEC. 221. RETIREMENT ELIGIBILITY FOR FEDERAL EM12 PLOYEES TRANSFERRED TO INTERNATIONAL

13 ORGANIZATIONS.

14 (a) TREAMENT OF SERVICE IN THE EMPLOY OF

15 INTERNATIONAL ORGANIZATIONS BY CERTAIN TRANS16 FERRED FEDERAL EMPLOYEES.—

17 (1) IN GENERAL.—Section 3121 of the Internal

18 Revenue Code of 1986 (relating to definitions) is

19 amended by adding at the end the following new

20 subsection:

21 ‘‘(y) SERVICE IN THE EMPLOY OF INTERNATIONAL

22 ORGANIZATIONS BY CERTAIN TRANSFERRED FEDERAL

23 EMPLOYEES.—

24 ‘‘(1) IN GENERAL.—For purposes of this chap25 ter, service performed in the employ of an inter-
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1 national organization by an individual pursuant to a

2 transfer of such individual to such international or3 ganization pursuant to section 3582 of title 5, Unit4 ed States Code, shall constitute ‘employment’ if—

5 ‘‘(A) immediately before such transfer,

6 such individual performed service with a Fed7 eral agency which constituted ‘employment’

8 under subsection (b) for purposes of the taxes

9 imposed by sections 3101(a) and 3111(a), and

10 ‘‘(B) such individual would be entitled,

11 upon separation from such international organi12 zation and proper application, to reemployment

13 with such Federal agency under such section

14 3582.

15 ‘‘(2) DEFINITIONS.—For purposes of this sub16 section—

17 ‘‘(A) FEDERAL AGENCY.—The term ‘Fed18 eral agency’ means an agency, as defined in

19 section 3581(1) of title 5, United States Code.

20 ‘‘(B) INTERNATIONAL ORGANIZATION.—

21 The term ‘international organization’ has the

22 meaning provided such term by section 3581(3)

23 of title 5, United States Code.’’

24 (2) CONTRIBUTIONS BY FEDERAL AGENCY.—

25 Section 3122 of such Code (relating to Federal serv-
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1 ice) is amended by inserting after the first sentence

2 the following new sentence: ‘‘In the case of the taxes

3 imposed by this chapter with respect to service per4 formed in the employ of an international organiza5 tion pursuant to a transfer to which the provisions

6 of section 3121(y) are applicable, the determination

7 of the amount of remuneration for such service, and

8 the return and payment of the taxes imposed by this

9 chapter, shall be made by the head of the Federal

10 agency from which the transfer was made.’’

11 (3) COLLECTION OF EMPLOYEE CONTRIBU12 TIONS.—Section 3102 of such Code (relating to de13 duction of tax from wages) is amended by adding at

14 the end the following new subsection:

15 ‘‘(e) SPECIAL RULE FOR CERTAIN TRANSFERRED

16 FEDERAL EMPLOYEES.—In the case of any payments of

17 wages for service performed in the employ of an inter18 national organization pursuant to a transfer to which the

19 provisions of section 3121(y) are applicable—

20 ‘‘(1) subsection (a) shall not apply,

21 ‘‘(2) the head of the Federal agency from which

22 the transfer was made shall separately include on

23 the statement required under section 6051—

24 ‘‘(A) the amount determined to be the

25 amount of the wages for such service, and
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1 ‘‘(B) the amount of the tax imposed by

2 section 3101 on such payments, and

3 ‘‘(3) the tax imposed by section 3101 on such

4 payments shall be paid by the employee.’’

5 (4) EXCLUSION FROM TREATMENT AS TRADE

6 OR BUSINESS.—Paragraph (2)(C) of section 1402(c)

7 of such Code (defining trade or business) is amend8 ed by adding at the end the following: ‘‘except serv9 ice which constitutes ‘employment’ under section

10 3121(y),’’.

11 (5) CONFORMING AMENDMENT.—Paragraph

12 (15) of section 3121(b) of such Code is amended by

13 inserting ‘‘, except service which constitutes ‘em14 ployment’ under subsection (y)’’ after ‘‘organiza15 tion’’.

16 (b) AMENDMENTS TO THE SOCIAL SECURITY ACT.—

17 (1) IN GENERAL.—Section 210 of the Social

18 Security Act (42 U.S.C. 410) is amended by adding

19 at the end the following new subsection:

20 ‘‘SERVICE IN THE EMPLOY OF INTERNATIONAL ORGANI21 ZATIONS BY CERTAIN TRANSFERRED FEDERAL EM22 PLOYEES

23 ‘‘(r)(1) For purposes of this title, service performed

24 in the employ of an international organization by an indi25 vidual pursuant to a transfer of such individual to such

26 international organization pursuant to section 3582 of
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1 title 5, United States Code, shall constitute ‘employment’

2 if—

3 ‘‘(A) immediately before such transfer, such in4 dividual performed service with a Federal agency

5 which constituted ‘employment’ as defined in sub6 section (a), and

7 ‘‘(B) such individual would be entitled, upon

8 separation from such international organization and

9 proper application, to reemployment with such Fed10 eral agency under such section 3582.

11 ‘‘(2) For purposes of this subsection—

12 ‘‘(A) The term ‘Federal agency’ means an agen13 cy, as defined in section 3581(1) of title 5, United

14 States Code.

15 ‘‘(B) The term ‘international organization’ has

16 the meaning provided such term by section 3581(3)

17 of title 5, United States Code.’’

18 (2) EXCLUSION FROM TREATMENT AS TRADE

19 OR BUSINESS.—Section 211(c)(2)(C) of such Act

20 (42 U.S.C. 411(c)(2)(C)) is amended by inserting

21 before the semicolon the following ‘‘, except service

22 which constitutes ‘employment’ under section

23 210(r)’’.

24 (3) CONFORMING AMENDMENT.—Section

25 210(a)(15) of such Act (42 U.S.C. 410(a)(15)) is
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1 amended by inserting ‘‘, except service which con2 stitutes ‘employment’ under subsection (r)’’ before

3 the semicolon.

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

5 this section shall apply with respect to service performed

6 after the calendar quarter following the calendar quarter

7 in which the date of the enactment of this Act occurs.

8 SEC. 222. TREATMENT OF CERTAIN VISAS.

9 (a) AMENDMENTS TO THE INTERNAL REVENUE

10 CODE OF 1986.—

11 (1) The following provisions of the Internal

12 Revenue Code of 1986 are each amended by striking

13 ‘‘(J), or (M)’’ each place it appears and inserting

14 ‘‘(J), (M), or (Q)’’:

15 (A) Section 871(c).

16 (B) Section 1441(b).

17 (C) Section 3121(b)(19).

18 (D) Section 3231(e)(1).

19 (E) Section 3306(c)(19).

20 (2) Paragraph (3) of section 872(b) of such

21 Code is amended by striking ‘‘(F) or (J)’’ and in22 serting ‘‘(F), (J), or (Q)’’.

23 (3) Paragraph (5) of section 7701(b) of such

24 Code is amended by striking ‘‘subparagraph (J)’’ in
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1 subparagraphs (C)(i) and (D)(i)(II) and inserting

2 ‘‘subparagraph (J) or (Q)’’.

3 (b) AMENDMENT TO SOCIAL SECURITY ACT.—Para4 graph (19) of section 210(a) of the Social Security Act

5 is amended by striking ‘‘(J), or (M)’’ each place it appears

6 and inserting ‘‘(J), (M), or (Q)’’.

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

8 this subsection shall take effect with the calendar quarter

9 following the date of the enactment of this Act.

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 and

22 (B) such other issues that the Secretary deter23 mines to be appropriate.

24 (f) REPORT.—Not later than November 30, 1996, the

25 Commission shall prepare a report and submit such report
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1 to the Committee on Ways and Means of the House of

2 Representatives and the Committee on Finance of the

3 Senate which shall summarize the results of the study de4 scribed in subsection (e) and include any recommendations

5 that the Commission determines to be appropriate.

6 SEC. 224. TECHNICAL AND CLERICAL AMENDMENTS.

7 (a) AMENDMENTS TO TITLE II OF THE SOCIAL SE8 CURITY ACT.—

9 (1) Section 201(a) of the Social Security Act

10 (42 U.S.C. 401(a)) is amended, in the matter follow11 ing clause (4), by striking ‘‘and and’’ and inserting

12 ‘‘and’’.

13 (2) Section 202(d)(8)(D)(ii) of such Act (42

14 U.S.C. 402(d)(8)(D)(ii)) is amended by adding a pe15 riod at the end and by adjusting the left hand

16 margination thereof so as to align with section

17 202(d)(8)(D)(i) of such Act.

18 (3) Section 202(q)(1)(A) of such Act (42

19 U.S.C. 402(q)(1)(A)) is amended by striking the

20 dash at the end.

21 (4) Section 202(q)(9) of such Act (42 U.S.C.

22 402(q)(9)) is amended, in the matter preceding sub23 paragraph (A), by striking ‘‘parargaph’’ and insert24 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; and

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.—Section 5105(d)(1)(A) of the Omnibus

24 Budget Reconciliation Act of 1990 (Public Law

25 101–508) is amended—
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1 (A) by striking ‘‘Section 205(j)(5)’’ and in2 serting ‘‘Section 205(j)(6)’’; and

3 (B) by redesignating the paragraph (5) as

4 amended thereby as paragraph (6).

5 (3) AMENDMENTS RELATED TO PROVISIONS IN

6 SECTION 5106 RELATING TO COORDINATION OF

7 RULES UNDER TITLES II AND XVI GOVERNING FEES

8 FOR REPRESENTATIVES OF CLAIMANTS WITH ENTI9 TLEMENTS UNDER BOTH TITLES.—

10 (A) CALCULATION OF FEE OF CLAIMANT’S

11 REPRESENTATIVE BASED ON AMOUNT OF PAST12 DUE SUPPLEMENTAL SECURITY INCOME BENE13 FITS AFTER APPLICATION OF WINDFALL OFF14 SET PROVISION.—Section 1631(d)(2)(A)(i) of

15 the Social Security Act (as amended by section

16 5106(a)(2) of the Omnibus Budget Reconcili17 ation Act of 1990) (42 U.S.C.

18 1383(d)(2)(A)(i)) is amended to read as fol19 lows:

20 ‘‘(i) by substituting, in subparagraphs (A)(ii)(I)

21 and (C)(i), the phrase ‘(as determined before any

22 applicable reduction under section 1631(g), and re23 duced by the amount of any reduction in benefits

24 under this title or title II made pursuant to section
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1 1127(a))’ for the parenthetical phrase contained

2 therein; and’’.

3 (B) CALCULATION OF PAST-DUE BENEFITS

4 FOR PURPOSES OF DETERMINING ATTORNEY

5 FEES IN JUDICIAL PROCEEDINGS.—

6 (i) IN GENERAL.—Section 206(b)(1)

7 of such Act (42 U.S.C. 406(b)(1)) is

8 amended—

9 (I) by inserting ‘‘(A)’’ after

10 ‘‘(b)(1)’’; and

11 (II) by adding at the end the fol12 lowing new subparagraph:

13 ‘‘(B) For purposes of this paragraph—

14 ‘‘(i) the term ‘past-due benefits’ excludes any

15 benefits with respect to which payment has been

16 continued pursuant to subsection (g) or (h) of sec17 tion 223, and

18 ‘‘(ii) amounts of past-due benefits shall be

19 taken into account to the extent provided under the

20 rules applicable in cases before the Secretary.’’.

21 (ii) PROTECTION FROM OFFSETTING

22 SSI BENEFITS.—The last sentence of sec23 tion 1127(a) of such Act (as added by sec24 tion 5106(b) of the Omnibus Budget Rec25 onciliation Act of 1990) (42 U.S.C.
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1 1320a–6(a)) is amended by striking ‘‘sec2 tion 206(a)(4)’’ and inserting ‘‘subsection

3 (a)(4) or (b) of section 206’’.

4 (4) APPLICATION OF SINGLE DOLLAR AMOUNT

5 CEILING TO CONCURRENT CLAIMS UNDER TITLES II

6 AND XVI.—

7 (A) IN GENERAL.—Section 206(a)(2) of

8 such Act (as amended by section 5106(a)(1) of

9 the Omnibus Budget Reconciliation Act of

10 1990) (42 U.S.C. 406(a)(2)) is amended—

11 (i) by redesignating subparagraph (C)

12 as subparagraph (D); and

13 (ii) by inserting after subparagraph

14 (B) the following new subparagraph:

15 ‘‘(C) In any case involving—

16 ‘‘(i) an agreement described in subparagraph

17 (A) with any person relating to both a claim of enti18 tlement to past-due benefits under this title and a

19 claim of entitlement to past-due benefits under title

20 XVI, and

21 ‘‘(ii) a favorable determination made by the

22 Secretary with respect to both such claims,

23 the Secretary may approve such agreement only if the

24 total fee or fees specified in such agreement does not ex-
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1 ceed, in the aggregate, the dollar amount in effect under

2 subparagraph (A)(ii)(II).’’.

3 (B) CONFORMING AMENDMENT.—Section

4 206(a)(3)(A) of such Act (as amended by sec5 tion 5106(a)(1) of the Omnibus Budget Rec6 onciliation Act of 1990) (42 U.S.C.

7 406(a)(3)(A)) is amended by striking ‘‘para8 graph (2)(C)’’ and inserting ‘‘paragraph

9 (2)(D)’’.

10 (5) EFFECTIVE DATE.—Each amendment made

11 by this section shall take effect as if included in the

12 provisions of the Omnibus Budget Reconciliation Act

13 of 1990 to which such amendment relates.

14 (g) ELIMINATION OF ROUNDING DISTORTION IN THE

15 CALCULATION OF THE OLD-AGE, SURVIVORS, AND DIS16 ABILITY INSURANCE CONTRIBUTION AND BENEFIT BASE

17 AND THE EARNINGS TEST EXEMPT AMOUNTS.—

18 (1) ADJUSTMENT OF OASDI CONTRIBUTION AND

19 BENEFIT BASE.—

20 (A) IN GENERAL.—Section 230(b) of the

21 Social Security Act (42 U.S.C. 430(b)) is

22 amended by striking paragraphs (1) and (2)

23 and inserting the following:

24 ‘‘(1) $60,600, and
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1 ‘‘(2) the ratio of (A) the national average wage

2 index (as defined in section 209(k)(1)) for the cal3 endar year before the calendar year in which the de4 termination under subsection (a) is made to (B) the

5 national average wage index (as so defined) for

6 1992,’’.

7 (B) CONFORMING AMENDMENT RELATING

8 TO APPLICABLE PRIOR LAW.—Section 230(d) of

9 such Act (42 U.S.C. 430(d)) is amended by

10 striking ‘‘(except that’’ and all that follows

11 through the end and inserting ‘‘(except that, for

12 purposes of subsection (b) of such section 230

13 as so in effect, the reference to the contribution

14 and benefit base in paragraph (1) of such sub15 section (b) shall be deemed a reference to an

16 amount equal to $45,000, each reference in

17 paragraph (2) of such subsection (b) to the av18 erage of the wages of all employees as reported

19 to the Secretary of the Treasury shall be

20 deemed a reference to the national average

21 wage index (as defined in section 209(k)(1)),

22 the reference to a preceding calendar year in

23 paragraph (2)(A) of such subsection (b) shall

24 be deemed a reference to the calendar year be25 fore the calendar year in which the determina-
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1 tion under subsection (a) of such section 230 is

2 made, and the reference to a calendar year in

3 paragraph (2)(B) of such subsection (b) shall

4 be deemed a reference to 1992).’’.

5 (C) ADJUSTMENT OF CONTRIBUTION AND

6 BENEFIT BASE APPLICABLE IN DETERMINING

7 YEARS OF COVERAGE FOR PURPOSES OF SPE8 CIAL MINIMUM PRIMARY INSURANCE

9 AMOUNT.—Section 215(a)(1)(C)(ii) of such Act

10 is amended by striking ‘‘(except that’’ and all

11 that follows through the end and inserting ‘‘(ex12 cept that, for purposes of subsection (b) of such

13 section 230 as so in effect, the reference to the

14 contribution and benefit base in paragraph (1)

15 of such subsection (b) shall be deemed a ref16 erence to an amount equal to $45,000, each

17 reference in paragraph (2) of such subsection

18 (b) to the average of the wages of all employees

19 as reported to the Secretary of the Treasury

20 shall be deemed a reference to the national av21 erage wage index (as defined in section

22 209(k)(1)), the reference to a preceding cal23 endar year in paragraph (2)(A) of such sub24 section (b) shall be deemed a reference to the

25 calendar year before the calendar year in which
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1 the determination under subsection (a) of such

2 section 230 is made, and the reference to a cal3 endar year in paragraph (2)(B) of such sub4 section (b) shall be deemed a reference to

5 1992).’’.

6 (2) ADJUSTMENT OF EARNINGS TEST EXEMPT

7 AMOUNT.—Section 203(f)(8)(B)(ii) of the Social Se8 curity Act (42 U.S.C. 403(f)(8)(B)(ii)) is amended

9 to read as follows:

10 ‘‘(ii) the product of the corresponding ex11 empt amount which is in effect with respect to

12 months in the taxable year ending after 1993

13 and before 1995, and the ratio of—

14 ‘‘(I) the national average wage index

15 (as defined in section 209(k)(1)) for the

16 calendar year before the calendar year in

17 which the determination under subpara18 graph (A) is made, to

19 ‘‘(II) the national average wage index

20 (as so defined) for 1992,

21 with such product, if not a multiple of $10,

22 being rounded to the next higher multiple of

23 $10 where such product is a multiple of $5 but

24 not of $10 and to the nearest multiple of $10

25 in any other case.’’.
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1 (3) EFFECTIVE DATES.—

2 (A) The amendments made by subsection

3 (a) shall be effective with respect to the deter4 mination of the contribution and benefit base

5 for years after 1994.

6 (B) The amendment made by subsection

7 (b) shall be effective with respect to the deter8 mination of the exempt amounts applicable to

9 any taxable year ending after 1994.

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