Union Calendar No. 283

103D CONGRESS

2D SESSION H. R. 4277

[Report No. 103–506]

A BILL

To establish the Social Security Administration as

ity insurance program.provements in the old-age, survivors, and disabilan independent agency and to make other imMAY 12, 1994

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

Union Calendar No. 283

103D CONGRESS

2D SESSION H. R. 4277

[Report No. 103–506]

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

MAY 12, 1994

Additional sponsors: Mr. ROSTENKOWSKI, Mr. ARCHER, Mr. PICKLE, Mr.

STARK, Mrs. KENNELLY, Mr. COYNE, Mr. KLECZKA, Mr. PAYNE of Virginia, Mr. JEFFERSON, Mr. BREWSTER, Mr. REYNOLDS, Mr. THOMAS of

California, Mrs. JOHNSON of Connecticut, Mr. BUNNING, Mr. GRANDY,

Mr. HOUGHTON, Mr. HERGER, Mr. MCCRERY, Mr. SANTORUM, Mr.

CAMP, Mrs. VUCANOVICH, and Mr. BACHUS of Alabama

MAY 12, 1994

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

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

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

[For text of introduced bill, see copy of bill as introduced on April 21, 1994]

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.
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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 ‘‘So5 cial Security Administrative Reform Act of 1994’’.

6 (b) TABLE OF CONTENTS.—

Sec. 1. Short title and table of contents.

Sec. 2. Declaration of purposes.

TITLE I—ESTABLISHMENT OF THE SOCIAL SECURITY

ADMINISTRATION AS AN INDEPENDENT AGENCY

Sec. 101. Establishment of the Social Security Administration as a separate,

independent agency; responsibilities of the agency.

Sec. 102. Social Security Board, executive director, deputy director, beneficiary

ombudsman; other officers.

Sec. 103. Personnel; budgetary matters; seal of office.

Sec. 104. Transfers to the new Social Security Administration.

Sec. 105. Transitional rules.

Sec. 106. Conforming amendments to Titles II and XVI of the Social Security

Act.

Sec. 107. Other conforming amendments.

Sec. 108. Rules of construction.

Sec. 109. Effective dates.

TITLE II—IMPROVEMENTS TO THE OLD-AGE, SURVIVORS, AND

DISABILITY INSURANCE PROGRAM

Sec. 201. Restrictions on payment of benefits based on disability to substance

abusers.

Sec. 202. Issuance of physical documents in the form of bonds, notes, or certificates to the social security trust funds.

Sec. 203. Explicit requirements for maintenance of telephone access to local offices

of the Social Security Administration.

Sec. 204. Expansion of State option to exclude service of election officials or election workers from coverage.

Sec. 205. Use of social security numbers by States and local governments and

Federal district courts for jury selection purposes.

Sec. 206. Authorization for all States to extend coverage to State and local policemen and firemen under existing coverage agreements.

Sec. 207. Limited exemption for Canadian ministers from certain self-employment tax liability.

Sec. 208. Exclusion of totalization benefits from the application of the windfall

elimination provision.

Sec. 209. Exclusion of military reservists from application of the government pension offset and windfall elimination provisions.

Sec. 210. Repeal of the facility-of-payment provision.

Sec. 211. Maximum family benefits in guarantee cases.
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Sec. 212. Authorization for disclosure by the Secretary of Health and Human

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

Sec. 213. Misuse of symbols, emblems, or names in reference to social security

programs and agencies.

Sec. 214. Increased penalties for unauthorized disclosure of social security information.

Sec. 215. Increase in authorized period for extension of time to file annual earnings report.

Sec. 216. Extension of disability insurance program demonstration project authority.

Sec. 217. Cross-matching of social security account number information and employer identification number information maintained by the Department of Agriculture.

Sec. 218. Certain transfers to railroad retirement account made permanent.

Sec. 219. Authorization for use of social security account numbers by department

of labor in administration of Federal workers’ compensation

laws.

Sec. 220. Coverage under FICA of Federal employees transferred temporarily to

international organizations.

Sec. 221. Extension of the FICA tax exemption and certain tax rules to individuals who enter the United States under a visa issued under section 101 of the Immigration and Nationality Act.

Sec. 222. Study of rising costs of disability insurance benefits.

Sec. 223. Commission on childhood disability.

Sec. 224. Disregard deemed income and resources of ineligible spouse in determining continued eligibility under section 1619(b).

Sec. 225. Plans for achieving self-support not disapproved within 60 days to be

deemed approved.

Sec. 226. Temporary authority to approve a limited number of plans for achieving self-support that include housing goals.

Sec. 227. Regulations regarding completion of plans for achieving self-support.

Sec. 228. Treatment of certain grant, scholarship, or fellowship income as earned

income for SSI purposes.

Sec. 229. SSI eligibility for students temporarily abroad.

Sec. 230. Disregard of cost-of-living increases for continued eligibility for work

incentives.

Sec. 231. Expansion of the authority of the Social Security Administration to

prevent, detect, and terminate fraudulent claims for SSI benefits.

Sec. 232. Disability review required for SSI recipients who are 18 years of age.

Sec. 233. Continuing disability reviews.

Sec. 234. Technical and clerical amendments.

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 De5 partment of Health and Human Services.
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1 (2) To charge the Social Security Administra2 tion with administration of the old-age, survivors,

3 and disability insurance program and supplemental

4 security income program.

5 (3) To establish a Social Security board as head

6 of the Social Security Administration and define the

7 powers and duties of such Board.

8 (4) To establish an Executive Director of the Ad9 ministration and define the powers and duties of the

10 Executive Director.

11 (5) To provide for delegating major authorities

12 to the Board and the Executive Director.

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

14 survivors, and disability insurance program under

15 title II of the Social Security Act.

16 TITLE I—ESTABLISHMENT OF

17 THE SOCIAL SECURITY AD18 MINISTRATION AS AN INDE19 PENDENT AGENCY

20 SEC. 101. ESTABLISHMENT OF THE SOCIAL SECURITY AD21 MINISTRATION AS A SEPARATE, INDEPEND22 ENT AGENCY; RESPONSIBILITIES OF THE

23 AGENCY.

24 Section 701 of the Social Security Act (42 U.S.C. 901)

25 is amended to read as follows:
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1 ‘‘SOCIAL SECURITY ADMINISTRATION

2 ‘‘SEC. 701. There is hereby established, as an inde3 pendent agency in the executive branch of the Government,

4 a Social Security Administration. It shall be the duty of

5 the Administration to administer the old-age, survivors,

6 and disability insurance program under title II and the

7 supplemental security income program under title XVI.’’.

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

9 DEPUTY DIRECTOR, BENEFICIARY OMBUDS10 MAN; OTHER OFFICERS.

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

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

13 ‘‘SOCIAL SECURITY BOARD; EXECUTIVE DIRECTOR; OTHER

14 OFFICERS

15 ‘‘Social Security Board

16 ‘‘SEC. 702. (a)(1)(A) The Administration shall be gov17 erned by a Social Security Board. The Board shall be com18 posed of three members appointed by the President, by and

19 with the advice and consent of the Senate. The members

20 shall be chosen on the basis of their integrity, impartiality,

21 and good judgment, and shall be individuals who are, by

22 reason of their education, experience, and attainments, ex23 ceptionally qualified to perform the duties of members of

24 the Board.

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

26 members of the Board shall be appointed for terms of six
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1 years. A member of the Board may be removed only pursu2 ant to a finding by the President of neglect of duty or mal3 feasance in office. The President shall transmit any such

4 finding to the Speaker of the House of Representatives and

5 the majority leader of the Senate not later than five days

6 after the date on which such finding is made.

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

8 ‘‘(I) one shall be appointed for a term of 2 years,

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

10 years, and

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

12 years,

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

14 Such members shall be appointed after active consideration

15 of recommendations made by the chairman of the Commit16 tee on Ways and Means of the House of Representatives and

17 of recommendations made by the chairman of the Commit18 tee on Finance of the Senate.

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

20 for appointment to a term of office as member of the Board

21 before the commencement of the President’s term of office

22 in which the member’s term of office commences. Any mem23 ber appointed to a term of office after the commencement

24 of such term may serve under such appointment only for

25 the remainder of such term. A member may, at the request
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1 of the President, serve for not more than one year after the

2 expiration of his or her term until his or her successor has

3 taken office. A member of the Board may be appointed for

4 additional terms.

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

6 be of the same political party.

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

8 her term as member, engage in any other business, vocation,

9 profession, or employment. A member of the Board may

10 continue as a member of the Board for not longer than the

11 30-day period beginning on the date such member first fails

12 to meet the requirements of the preceding sentence.

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

14 quorum, except that one member may hold hearings.

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

16 the President to serve as Chairperson of the Board for a

17 term of 4 years.

18 ‘‘(G) The Board shall meet at the call of the Chair19 person or two members of the Board.

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

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

22 ‘‘(3) The Board shall—

23 ‘‘(A) govern by regulation the old-age, survivors,

24 and disability insurance program under title II and
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1 the supplemental security income program under title

2 XVI,

3 ‘‘(B) establish the Administration and oversee its

4 efficient and effective operation,

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

6 to promote and maintain the effective implementation

7 of programs referred to in subparagraph (A),

8 ‘‘(D) appoint an Executive Director of the Ad9 ministration, as described in subsection (b), to act as

10 the chief operating officer of the Administration re11 sponsible for administering the programs referred to

12 in subparagraph (A),

13 ‘‘(E) constitute three of the members of the Board

14 of Trustees of the Federal Old-Age and Survivors In15 surance Trust Fund and the Federal Disability In16 surance Trust Fund, with the Chairperson of the So17 cial Security Board serving as Chairperson of such

18 Board of Trustees,

19 ‘‘(F) prepare an annual budget for the Adminis20 tration, which shall be submitted by the President to

21 the Congress without revision, together with the Presi22 dent’s annual budget for the Administration,

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

24 Congress and the President as to the most effective

25 methods of providing economic security through social
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1 insurance, supplemental security income, and related

2 programs and as to legislation and matters of admin3 istrative policy concerning the programs referred to

4 in subparagraph (A),

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

6 with the ongoing actuarial and other analysis under7 taken by the Administration with respect to the pro8 grams referred to in subparagraph (A) and any other

9 information relating to such programs, and

10 ‘‘(I) conduct policy analysis and research relat11 ing to the programs referred to in subparagraph (A).

12 ‘‘(4)(A) The Board may prescribe such rules and regu13 lations as the Board determines necessary or appropriate

14 to carry out the functions of the Administration. The regu15 lations prescribed by the Board shall be subject to the rule16 making procedures established under section 553 of title 5,

17 United States Code.

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

19 discontinue such organizational units or components within

20 the Administration as the Board considers necessary or ap21 propriate to carry out its functions, except that this sub22 paragraph shall not apply with respect to any unit, compo23 nent, or position provided for by this Act.

24 ‘‘(C) The Board may, with respect to the administra25 tion of the old-age, survivors, and disability insurance pro-
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1 gram under title II and the supplemental security income

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

3 authorize successive redelegations of, authority to act and

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

5 Board may find necessary. Within the limitations of such

6 delegations, redelegations, or assignments, all official acts

7 and decisions of such officers and employees shall have the

8 same force and effect as though performed or rendered by

9 the Board.

10 ‘‘Executive Director

11 ‘‘(b)(1) There shall be in the Administration an Execu12 tive Director who shall be appointed by the Social Security

13 Board.

14 ‘‘(2)(A) The Executive Director shall be appointed for

15 a term of four years. An individual appointed to a term

16 of office as Executive Director after the commencement of

17 such term of office may serve under such appointment only

18 for the remainder of such term. An individual may, at the

19 request of the Chairperson of the Board, serve as Executive

20 Director after the expiration of his or her term for not more

21 than one year until his or her successor has taken office.

22 An individual may be appointed as Executive Director for

23 additional terms.
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1 ‘‘(B) An individual may be removed from the office

2 of Executive Director before completion of his or her term

3 only for cause found by the Board.

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

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

6 ‘‘(4) The Executive Director shall—

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

8 Administration, responsible for administering, in ac9 cordance with applicable statutes and regulations, the

10 old-age, survivors, and disability insurance program

11 under title II and the supplemental security income

12 program under title XVI,

13 ‘‘(B) maintain an efficient and effective oper14 ational structure for the Administration,

15 ‘‘(C) implement the long-term plans of the Board

16 to promote and maintain the effective implementation

17 of such programs,

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

19 costs under titles II and XVI, make annual budgetary

20 recommendations to the Board for the ongoing admin21 istrative costs of the Administration under this Act,

22 and defend the recommendations before the Board,

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

24 effect on the administration of such programs of pro25 posed legislative changes in such programs,
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1 ‘‘(F) serve as Secretary of the Board of Trustees

2 of the Federal Old-Age and Survivors Insurance Trust

3 Fund and the Federal Disability Insurance Trust

4 Fund,

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

6 Board for transmittal to the Congress concerning the

7 administrative endeavors and accomplishments of the

8 Administration, and

9 ‘‘(H) carry out such additional duties as are as10 signed by the Board from time to time.

11 Any reference to the Board in this Act or any other provi12 sion of law in connection with the exercise of a function

13 of the Board which is delegated to the Executive Director

14 pursuant to this section shall be considered a reference to

15 the Executive Director.

16 ‘‘Deputy Director of Social Security

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

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

19 serve at the pleasure of the Executive Director.

20 ‘‘(2) The Deputy Director shall be compensated at the

21 rate provided for level III of the Executive Schedule.

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

23 and exercise such powers as the Executive Director shall

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

25 shall be Acting Executive Director of the Administration
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1 during the absence or disability of the Executive Director

2 and, unless the Board designates another officer of the Gov3 ernment as Acting Executive Director, in the event of a va4 cancy in the office of the Executive Director.

5 ‘‘General Counsel

6 ‘‘(d)(1) There shall be in the Administration a General

7 Counsel, who shall be appointed by and serve at the pleasure

8 of the Board. The General Counsel shall be the principal

9 legal officer in the Administration.

10 ‘‘(2) The General Counsel shall be compensated at the

11 rate provided for level IV of the Executive Schedule.

12 ‘‘Inspector General

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

14 of the Inspector General. Such Office shall be headed by an

15 Inspector General appointed in accordance with the Inspec16 tor General Act of 1978.

17 ‘‘(2) The Inspector General shall be compensated at the

18 rate provided for level IV of the Executive Schedule.

19 ‘‘Beneficiary Ombudsman

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

21 of the Beneficiary Ombudsman, to be headed by a Bene22 ficiary Ombudsman appointed by the Board.

23 ‘‘(2)(A) The Beneficiary Ombudsman shall be ap24 pointed for a term of five years, except that the individual

25 first appointed to the Office of Beneficiary Ombudsman
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1 shall be appointed for a term ending September 30, 2000.

2 An individual appointed to a term of office as Beneficiary

3 Ombudsman after the commencement of such term may

4 serve under such appointment only for the remainder of

5 such term. An individual may, at the request of the Chair6 person of the Board, serve as Beneficiary Ombudsman after

7 the expiration of his or her term for not more than one

8 year until his or her successor has taken office. An individ9 ual may be appointed as Beneficiary Ombudsman for addi10 tional terms.

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

12 of Beneficiary Ombudsman before completion of his or her

13 term only for cause found by the Board.

14 ‘‘(3) The Beneficiary Ombudsman shall be com15 pensated at the rate provided for level V of the Executive

16 Schedule.

17 ‘‘(4) The duties of the Beneficiary Ombudsman are as

18 follows:

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

20 decisionmaking process the interests and concerns of

21 beneficiaries under the old-age, survivors, and disabil22 ity insurance program under title II and the supple23 mental security income program under title XVI.
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1 ‘‘(B) To review the Administration’s policies and

2 procedures for possible adverse effects on such bene3 ficiaries.

4 ‘‘(C) To recommend within the Administration’s

5 decisionmaking process changes in policies which have

6 caused problems for such beneficiaries.

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

8 programs of individual beneficiaries in unusual or

9 difficult circumstances, as determined by the Admin10 istration.

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

12 decisionmaking process the views of beneficiaries in

13 the design of forms and the issuance of instructions.

14 ‘‘(5) The Board shall assure that the Office of the Bene15 ficiary Ombudsman has staff sufficient to enable the Bene16 ficiary Ombudsman to efficiently carry out his or her du17 ties. Such staff shall be located in the regional offices, pro18 gram centers, and central office of the Administration.

19 ‘‘(6) The annual report of the Board under section 704

20 shall include a description of the activities of the Bene21 ficiary Ombudsman.

22 ‘‘Administrative Law Judge

23 ‘‘(g)(1) There shall be in the Administration an Office

24 of the Chief Administrative Law Judge, who shall be ap25 pointed by the Board. The duty of the Chief Administrative
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1 Law Judge shall be to administer the affairs of the adminis2 trative law judges serving in the Administration in a man3 ner so as to ensure that hearings and other business are

4 conducted by the administrative law judges in accordance

5 with applicable law and regulations.

6 ‘‘(2) The Chief Administrative Law Judge shall report

7 directly to the Board.’’.

8 (b) CONFORMING AMENDMENTS RELATING TO COM9 POSITION OF BOARD OF TRUSTEES OF OASDI TRUST

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

11 amended—

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

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

14 officio’’ and inserting the following: ‘‘shall be com15 posed of the members of the Social Security Board,

16 the Secretary of the Treasury, the Secretary of Health

17 and Human Services, all ex officio’’;

18 (2) by inserting after the first sentence the fol19 lowing new sentence: ‘‘The Chairperson of the Social

20 Security Board shall be the Chairperson of the Board

21 of Trustees.’’; and

22 (3) by striking ‘‘Commissioner of Social Secu23 rity’’ and inserting ‘‘Executive Director of the Social

24 Security Administration’’.
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1 (c) INTERIM AUTHORITY OF THE COMMISSIONER.—

2 The President shall nominate for appointment the initial

3 members of the Social Security Board not later than April

4 1, 1995. In the event that, as of October 1, 1995, all mem5 bers of the Social Security Board have not entered upon

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

7 office, the officer serving on October 1, 1995, as Commis8 sioner of Social Security in the Department of Health and

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

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

11 as Commissioner of Social Security (or Acting Commis12 sioner) in such Department, serve as head of the Social Se13 curity Administration established under section 701 of the

14 Social Security Act (as amended by this Act) and shall as15 sume the powers and duties of such Board and of the Execu16 tive Director under such Act (as amended by this Act).

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

18 OFFICE.

19 Section 703 of the Social Security Act (42 U.S.C. 903)

20 is amended to read as follows:

21 ‘‘ADMINISTRATIVE DUTIES OF THE SOCIAL SECURITY

22 BOARD

23 ‘‘Personnel

24 ‘‘SEC. 703. (a)(1) The Social Security Board shall ap25 point such additional officers and employees as it considers

26 necessary to carry out its functions. Except as otherwise
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1 provided in any other provision of law, such officers and

2 employees shall be appointed, and their compensation shall

3 be fixed, in accordance with title 5, United States Code.

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

5 consultants in accordance with the provisions of section

6 3109 of title 5, United States Code.

7 ‘‘(3) The Director of the Office of Personnel Manage8 ment shall authorize for the Administration a total number

9 of Senior Executive Service positions which is greater than

10 the number of such positions authorized in the Social Secu11 rity Administration in the Department of Health and

12 Human Services as of immediately before the date of the

13 enactment of the Social Security Administrative Reform

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

15 authorized positions is specified in the comprehensive

16 workforce plan as established and revised by the Board

17 under subsection (b)(1). The total number of such positions

18 authorized for the Administration pursuant to such section

19 3133 shall not at any time be less than the number of such

20 authorized positions as of immediately before such date.

21 ‘‘(4) In addition to the positions of the Administration

22 in the Executive Schedule specified in section 702, the Ad23 ministration is authorized six additional positions at level

24 IV of the Executive Schedule and six additional positions

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

2 ‘‘(b) Appropriations requests for staffing and personnel

3 of the Administration shall be based upon a comprehensive

4 workforce plan, which shall be established and revised from

5 time to time by the Board.

6 ‘‘Seal of Office

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

8 for the Administration of such design as the Board shall

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

10 SEC. 104. TRANSFERS TO THE NEW SOCIAL SECURITY

11 ADMINISTRATION.

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

13 Security Administration all functions carried out by the

14 Secretary of Health and Human Services with respect to

15 the programs and activities the administration of which is

16 vested in the Social Security Administration by reason of

17 this Act and the amendments made thereby. The Social Se18 curity Board shall allocate such functions in accordance

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

20 (as amended by this Act).

21 (b) PERSONNEL, ASSETS, ETC.—(1) There are trans22 ferred from the Department of Health and Human Services

23 to the Social Security Administration, for appropriate allo24 cation by the Social Security Board in the Social Security

25 Administration—
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1 (A) the personnel (other than administrative law

2 judges) employed in connection with the functions

3 transferred by this Act and the amendments made

4 thereby, as considered appropriate by the Board in

5 consultation with the Secretary of Health and

6 Human Services,

7 (B) such number of administrative law judges as

8 are necessary to carry out the functions transferred

9 by this Act and the amendments made thereby, as de10 termined by the Board in consultation with the Sec11 retary of Health and Human Services, and

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

13 records, and unexpended balance of appropriations,

14 authorizations, allocations, and other funds employed,

15 held, or used in connection with such functions, aris16 ing from such functions, or available, or to be made

17 available, in connection with such functions.

18 (2) Unexpended funds transferred pursuant to this

19 subsection shall be used only for the purposes for which the

20 funds were originally authorized and appropriated.

21 (3) The Secretary of Health and Human Services shall

22 terminate—

23 (A) six positions in the Department of Health

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

2 5, United States Code, or any other provision of law,

3 and

4 (B) six positions in such Department placed in

5 level V of the Executive Schedule (or equivalent posi6 tions) other than positions specifically required under

7 section 5316 of such title or any other provision of

8 law.

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

10 personnel (except special Government employees) and part11 time personnel holding permanent positions shall not cause

12 any such employees to be separated or reduced in grade or

13 compensation for 1 year after such transfer or October 1,

14 1995, whichever is later.

15 (c) ABOLISHMENT OF OFFICE OF COMMISSIONER IN

16 THE DEPARTMENT OF HEALTH AND HUMAN SERVICES.—

17 Effective upon the entry upon office of all initial members

18 of the Social Security Board pursuant to section 702 of the

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

20 of Commissioner of Social Security in the Department of

21 Health and Human Services is abolished.

22 SEC. 105. TRANSITIONAL RULES.

23 (a) INTERIM AUTHORITY FOR APPOINTMENT AND COM24 PENSATION.—At any time on or after the date of the enact25 ment of this Act—
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1 (1) any of the officers provided for in section 702

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

3 may enter upon office, as provided in such section,

4 and

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

6 office of all of the members thereof, may prescribe reg7 ulations providing for the orderly transfer of proceed8 ings before the Secretary of Health and Human Serv9 ices to the Social Security Board.

10 Funds available to any official or component of the Depart11 ment of Health and Human Services, functions of which

12 are transferred to the Social Security Board or the Social

13 Security Administration by this Act, may be used, with the

14 approval of the Director of the Office of Management and

15 Budget, to pay the compensation and expenses of any officer

16 entering upon office pursuant to this section until such time

17 as funds for that purpose are otherwise available.

18 (b) CONTINUATION OF ORDERS, DETERMINATIONS,

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

20 rules, regulations, permits, contracts, collective bargaining

21 agreements, recognitions of labor organizations, certificates,

22 licenses, and privileges—

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

24 granted, or allowed to become effective, in the exercise

25 of functions (A) which were exercised by the Secretary
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1 of Health and Human Services (or his delegate), and

2 (B) which relate to functions which, by reason of this

3 Act, the amendments made thereby, and regulations

4 prescribed thereunder, are vested in the Social Secu5 rity Board, and

6 (2) which are in effect immediately before Octo7 ber 1, 1995,

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

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

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

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

12 (c) CONTINUATION OF PROCEEDINGS.—The provisions

13 of this Act (including the amendments made thereby) shall

14 not affect any proceeding pending before the Secretary of

15 Health and Human Services immediately before October 1,

16 1995, with respect to functions vested (by reason of this Act,

17 the amendments made thereby, and regulations prescribed

18 thereunder) in the Social Security Board, except that such

19 proceedings, to the extent that they relate to such functions,

20 shall continue before such Board. Orders shall be issued

21 under any such proceeding, appeals taken therefrom, and

22 payments shall be made pursuant to such orders, in like

23 manner as if this Act had not been enacted, and orders is24 sued in any such proceeding shall continue in effect until

25 modified, terminated, superseded, or repealed by such
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1 Board, by a court of competent jurisdiction, or by operation

2 of law.

3 (d) CONTINUATION OF SUITS.—Except as provided in

4 this subsection—

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

6 suits commenced prior to October 1, 1995; and

7 (2) in all such suits proceedings shall be had, ap8 peals taken, and judgments rendered, in the same

9 manner and effect as if this Act had not been enacted.

10 No cause of action, and no suit, action, or other pro11 ceeding commenced by or against any officer in his

12 official capacity as an officer of the Department of

13 Health and Human Services, shall abate by reason of

14 the enactment of this Act. Causes of action, suits, ac15 tions, or other proceedings may be asserted by or

16 against the United States and the Social Security Ad17 ministration, or such official of such Administration

18 as may be appropriate, and, in any litigation pend19 ing immediately before October 1, 1995, the court

20 may at any time, on its own motion or that of a

21 party, enter an order which will give effect to the pro22 visions of this subsection (including, where appro23 priate, an order for substitution of parties).

24 (e) CONTINUATION OF PENALTIES.—This Act shall not

25 have the effect of releasing or extinguishing any criminal
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1 prosecution, penalty, forfeiture, or liability incurred as a

2 result of any function which (by reason of this Act), the

3 amendments made thereby, and regulations prescribed

4 thereunder) is vested in the Social Security Board.

5 (f) JUDICIAL REVIEW.—Orders and actions of the So6 cial Security Board in the exercise of functions vested in

7 such Board under this Act (and the amendments made

8 thereby) shall be subject to judicial review to the same extent

9 and in the same manner as if such orders had been made

10 and such actions had been taken by the Secretary of Health

11 and Human Services in the exercise of such functions im12 mediately before October 1, 1995. Any statutory require13 ments relating to notice, hearings, action upon the record,

14 or administrative review that apply to any function so vest15 ed in such Board shall continue to apply to the exercise

16 of such function by such Board.

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

18 functions vested in the Social Security Board under this

19 Act, the amendments made thereby, and regulations pre20 scribed thereunder, such Board shall have the same author21 ity as that vested in the Secretary of Health and Human

22 Services with respect to the exercise of such functions imme23 diately preceding the vesting of such functions in such

24 Board, and actions of such Board shall have the same force

25 and effect as when exercised by such Secretary.
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1 (h) OPERATION OF TRANSITIONAL RULES IN THE

2 EVENT OF INTERIM AUTHORITY IN THE COMMISSIONER.—

3 For purposes of this section, in any case in which the pow4 ers and duties to be transferred to the Social Security Board

5 are transferred to the Commissioner of Social Security (or

6 acting Commissioner) in the Department of Health and

7 Human Services for an interim period pursuant to section

8 102(c), the preceding provisions of this section shall apply

9 with respect to the transfer of such powers and duties to

10 and from such Commissioner (or acting Commissioner)

11 pursuant to section 102(c) in the same manner and to the

12 same extent as they would have applied to a direct transfer

13 from the Secretary of Health and Human Services to the

14 Social Security Board if all members of the Board had en15 tered upon office.

16 SEC. 106. CONFORMING AMENDMENTS TO TITLES II AND

17 XVI OF THE SOCIAL SECURITY ACT.

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

19 (other than section 201, section 218(d), section 226, section

20 226A, and section 231(c)) and title XVI of such Act are

21 each amended—

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

23 ‘‘Secretary of Health and Human Services’’ and in24 serting ‘‘Social Security Board’’;
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1 (2) by striking, wherever it appears therein, ‘‘De2 partment of Health and Human Services’’ and insert3 ing ‘‘Social Security Administration’’;

4 (3) by striking, wherever it appears therein, ‘‘De5 partment’’ (but only if it is not immediately suc6 ceeded by the words ‘‘of Health and Human Serv7 ices’’, and only if it is used in reference to the De8 partment of Health and Human Services) and insert9 ing ‘‘Administration’’;

10 (4) by striking, wherever it appears therein, each

11 of the following words (but, in the case of any such

12 word only if such word refers to the Secretary of

13 Health and Human Services): ‘‘Secretary’’, ‘‘Sec14 retary’s’’, ‘‘his’’, ‘‘him’’, and ‘‘he’’, and inserting (in

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

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

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

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

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

20 Board’’; and

21 (5) by striking, wherever it appears therein, ‘‘In22 ternal Revenue Code of 1954’’ and inserting ‘‘Internal

23 Revenue Code of 1986’’.

24 (b) AMENDMENTS TO SECTION 218.—Section 218(d) of

25 such Act (42 U.S.C. 418(d)) is amended by striking ‘‘Sec-
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1 retary’’ each place it appears in paragraphs (3) and (7)

2 and inserting ‘‘Social Security Board’’.

3 (c) AMENDMENTS TO SECTION 222.—Section 222(d) of

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

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

6 striking ‘‘Commissioner of Social Security’’ and in7 serting ‘‘Executive Director of the Social Security Ad8 ministration’’; and

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

10 striking ‘‘Commissioner of Social Security’’ and in11 serting ‘‘Executive Director of the Social Security Ad12 ministration’’.

13 (d) AMENDMENT TO SECTION 231.—Section 231(c) of

14 such Act (42 U.S.C. 431(c)) is amended by striking ‘‘Sec15 retary determines’’ and inserting ‘‘Social Security Board

16 and the Secretary jointly determine’’.

17 (e) AMENDMENT TO SECTION 1615.—Section 1615(d)

18 of such Act (422 U.S.C. 1832d(d)) is amended by striking

19 ‘‘Commissioner of Social Security’’ and inserting ‘‘Execu20 tive Director of the Social Security Administration’’.

21 SEC. 107. OTHER CONFORMING AMENDMENTS.

22 Title VII of the Social Security Act is amended—

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

24 inserting the following new section:
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1 ‘‘REPORTS

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

3 Board shall make full reports to Congress, within 120 days

4 after the beginning of each regular session, of the adminis5 tration of the functions with which they are charged under

6 this Act. In addition to the number of copies of such reports

7 authorized by other law to be printed, there is hereby au8 thorized to be printed not more than 5,000 copies of each

9 such report for use by the Secretary and Social Security

10 Board for distribution to Members of Congress and to State

11 and other public or private agencies or organizations par12 ticipating in or concerned with the programs provided for

13 in this Act.’’;

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

15 by striking ‘‘(as estimated by the Secretary)’’ and in16 serting ‘‘, as estimated by the Social Security Board

17 or the Secretary (whichever administers the program

18 involved),’’; and

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

20 new section:

21 ‘‘DUTIES AND AUTHORITY OF SECRETARY

22 ‘‘SEC. 712. (a) The Secretary shall perform the duties

23 imposed upon him by this Act and shall also have the duty

24 of studying and making recommendations as to the most

25 effective methods of providing economic security and as to

26 legislation and matters of administrative policy concerning
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1 the programs administered by the Secretary and related

2 subjects; except that nothing in this section shall be con3 strued to require the Secretary to make studies or rec4 ommendations with respect to programs administered by

5 the Social Security Administration.

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

7 the compensation of such officers and employees, and to

8 make such expenditures, as may be necessary for carrying

9 out the Secretary’s functions under this Act. Appointments

10 of attorneys and experts may be made without regard to

11 the civil service laws.’’.

12 SEC. 108. RULES OF CONSTRUCTION.

13 (a) REFERENCES TO THE DEPARTMENT OF HEALTH

14 AND HUMAN SERVICES.—Whenever any reference is made

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

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

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

18 Human Services with respect to such Department’s func19 tions under the old-age, survivors, and disability insurance

20 program under title II of the Social Security Act or the

21 supplemental security income program under title XVI of

22 such Act, such reference shall be considered a reference to

23 the Social Security Administration.

24 (b) REFERENCES TO THE SECRETARY OF HEALTH AND

25 HUMAN SERVICES.—Whenever any reference is made in
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1 any provision of law (other than this Act or a provision

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

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

4 Human Services with respect to such Secretary’s functions

5 under such programs, such reference shall be considered a

6 reference to the Social Security Board.

7 (c) REFERENCES TO OTHER OFFICERS AND EMPLOY8 EES.—Whenever any reference is made in any provision of

9 law (other than this Act or a provision of law amended

10 by this Act), regulation, rule, record, or document to any

11 other officer or employee of the Department of Health and

12 Human Services with respect to such officer’s or employee’s

13 functions under such programs, such reference shall be con14 sidered a reference to the appropriate officer or employee

15 of the Social Security Administration.

16 SEC. 109. EFFECTIVE DATES.

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

18 106, 107, and 108 of this Act (and the amendments made

19 thereby) shall take effect October 1, 1995.

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

21 effect upon the entry upon office of all initial members of

22 the Social Security Board. Sections 102(c) and 105 of this

23 Act shall take effect on the date of the enactment of this

24 Act.
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1 (c) NEW SPENDING AUTHORITY.—Any new spending

2 authority provided by this title shall be effective for any

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

4 provided in advance in appropriation Acts.

5 TITLE II—IMPROVEMENTS TO

6 THE OLD-AGE, SURVIVORS,

7 AND DISABILITY INSURANCE

8 PROGRAM

9 SEC. 201. RESTRICTIONS ON PAYMENT OF BENEFITS BASED

10 ON DISABILITY TO SUBSTANCE ABUSERS.

11 (a) AMENDMENTS RELATING TO BENEFITS BASED ON

12 DISABILITY UNDER TITLE II OF THE SOCIAL SECURITY

13 ACT.—

14 (1) REQUIRED PAYMENT OF BENEFITS TO REP15 RESENTATIVE PAYEES.—

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

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

18 amended—

19 (i) by inserting after the first sentence

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

21 an individual entitled to benefits based on

22 disability, if alcoholism or drug addiction is

23 a contributing factor material to the Sec24 retary’s determination that the individual

25 is under a disability, certification of pay-
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1 ment of such benefits to a representative

2 payee shall be deemed to serve the interest

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

4 (ii) in the last sentence, by inserting

5 ‘‘, if the interest of the individual under

6 this title would be served thereby,’’ after ‘‘al7 ternative representative payee or’’.

8 (B) EFFECTIVE DATE.—The amendments

9 made by subparagraph (A) shall apply with re10 spect to benefits for months beginning after 180

11 days after the date of the enactment of this Act.

12 (C) STUDY REGARDING FEASIBILITY, COST,

13 AND EQUITY OF REQUIRING REPRESENTATIVE

14 PAYEES FOR ALL DISABILITY BENEFICIARIES

15 SUFFERING FROM ALCOHOLISM OR DRUG ADDIC16 TION.—

17 (i) STUDY.—As soon as practicable

18 after the date of the enactment of this Act,

19 the Secretary of Health and Human Serv20 ices shall conduct a study of the representa21 tive payee program. In such study, the Sec22 retary shall examine—

23 (I) the feasibility, cost, and equity

24 of requiring representative payees for

25 all individuals entitled to benefits
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1 based on disability under title II or

2 XVI of the Social Security Act who

3 suffer from alcoholism or drug addic4 tion, irrespective of whether the alco5 holism or drug addiction was material

6 in any case to the Secretary’s deter7 mination of disability,

8 (II) the feasibility of and appro9 priate timetable for providing benefits

10 through non-cash means, including

11 (but not limited to) vouchers, debit

12 cards, and electronic benefits transfer

13 systems,

14 (III) the extent to which child

15 beneficiaries are afflicted by drug addi16 tion or alcoholism and ways of ad17 dressing such affliction, including the

18 feasibility of requiring treatment, and

19 (IV) the extent to which children’s

20 representative payees are afflicted by

21 drug addiction or alcoholism, and

22 methods to identify children’s rep23 resentative payees afflicted by drug ad24 dition or alcoholism and to ensure that
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1 benefits continue to be provided to

2 beneficiaries appropriately.

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

4 1995, the Secretary shall transmit to the

5 Committee on Ways and Means of the

6 House of Representatives and the Committee

7 on Finance of the Senate a report setting

8 forth the findings of the Secretary based on

9 such Study. Such report shall include such

10 recommendations for administrative or leg11 islative changes as the Secretary considers

12 appropriate.

13 (2) INCREASED RELIANCE ON PROFESSIONAL

14 REPRESENTATIVE PAYEES.—

15 (A) PREFERENCE REQUIRED FOR ORGANI16 ZATIONAL REPRESENTATIVE PAYEES.—Section

17 205(j)(2)(C) of such Act (42 U.S.C. 405(j)(2)(C))

18 is amended by adding at the end the following

19 new clause:

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

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

22 contributing factor material to the Secretary’s determina23 tion that the individual is under a disability, when select24 ing such individual’s representative payee, preference shall

25 be given to—
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1 ‘‘(I) a community-based nonprofit social service

2 agency licensed or bonded by the State,

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

4 mission is to carry out income maintenance, social

5 service, or health care-related activities, or

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

7 fiduciary responsibilities,

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

9 appropriate), unless the Secretary determines that selection

10 of such an agency would not be appropriate.’’.

11 (B) AVAILABILITY OF PUBLIC AGENCIES

12 AND OTHER QUALIFIED ORGANIZATIONS TO

13 SERVE AS REPRESENTATIVE PAYEES.—Section

14 205(j)(4) of such Act (42 U.S.C. 405(j)(4)) is

15 amended—

16 (i) in subparagraph (A)—

17 (I) by striking ‘‘exceed the lesser

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

19 (II) by striking clauses (i) and

20 (ii) and inserting the following:

21 ‘‘(i) in any case in which an individ22 ual is entitled to benefits based on disability

23 and alcoholism or drug addiction is a con24 tributing factor material to the Secretary’s

25 determination that the individual is under
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1 a disability, 10 percent of the monthly bene2 fit involved, or

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

4 ‘‘(I) 10 percent of the monthly

5 benefit involved, or

6 ‘‘(II) $25.00 per month.’’;

7 (ii) in subparagraph (B)—

8 (I) by inserting ‘‘State or local

9 government agency whose mission is to

10 carry out income maintenance, social

11 service, or health care-related activities,

12 any State or local government agency

13 with fiduciary responsibilities, or any’’

14 after ‘‘means any’’;

15 (II) by striking ‘‘representative

16 payee and which,’’ and inserting ‘‘rep17 resentative payee, if such agency,’’;

18 (III) by striking ‘‘, and’’ at the

19 end of clause (ii) and inserting a pe20 riod; and

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

22 (iii) by striking subparagraph (D), ef23 fective July 1, 1994.
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1 (C) DEFINITION.—Section 205(j) of such

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

3 the end the following new paragraph:

4 ‘‘(7) For purposes of this subsection, the term ‘benefit

5 based on disability’ of an individual means a disability in6 surance benefit of such individual under section 223 or a

7 child’s, widow’s, or widower’s insurance benefit of such in8 dividual under section 202 based on such individual’s dis9 ability.’’.

10 (3) NONPAYMENT OR TERMINATION OF BENE11 FITS.—

12 (A) IN GENERAL.—Section 225 of such Act

13 (42 U.S.C. 425) is amended—

14 (i) by striking the heading and insert15 ing the following:

16 ‘‘ADDITIONAL RULES RELATING TO BENEFITS BASED ON

17 DISABILITY

18 ‘‘Suspension of Benefits’’;

19 (ii) by inserting before subsection (b)

20 the following new heading:

21 ‘‘Continued Payments During Rehabilitation Program’’;

22 and

23 (iii) by adding at the end the following

24 new subsection:
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1 ‘‘Nonpayment or Termination of Benefits Where

2 Entitlement Involves Alcoholism or Drug Addiction

3 ‘‘(c)(1)(A) Notwithstanding any other provision of this

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

5 on disability, if alcoholism or drug addiction is a contribut6 ing factor material to the Secretary’s determination that

7 such individual is under a disability and such individual

8 is determined by the Secretary not to be in compliance with

9 the requirements of this subsection for a month, such bene10 fits shall be suspended for a period commencing with such

11 month and ending with the month preceding the first

12 month, after the determination of noncompliance, in which

13 such individual demonstrates that he or she has reestab14 lished and maintained compliance with such requirements

15 for the applicable period specified in paragraph (3).

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

17 individual who is entitled to benefits based on disability

18 for the first month ending after 180 days after the date of

19 the enactment of the Social Security Administrative Reform

20 Act of 1994, if such individual has a primary diagnosis

21 of alcoholism or drug addiction, such alcoholism or drug

22 addiction shall be treated as a contributing factor material

23 to the Secretary’s determination of disability.

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

25 in compliance with the requirements of this subsection for
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1 a month if such individual in such month undergoes any

2 medical or psychological treatment that may be appro3 priate, for such individual’s condition diagnosed as sub4 stance abuse or alcohol abuse and for the stage of such indi5 vidual’s rehabilitation, at an institution or facility ap6 proved for purposes of this subsection by the Secretary, and

7 complies in such month with the terms, conditions, and re8 quirements of such treatment and with requirements im9 posed by the Secretary under paragraph (6).

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

11 not be determined to be not in compliance with the require12 ments of this subsection for a month if access by such indi13 vidual to such treatment is not reasonably available for that

14 month, as determined under regulations of the Secretary.

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

16 is—

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

18 determination that an individual is not in compli19 ance with the requirements of this subsection,

20 ‘‘(B) 3 consecutive months, in the case of the sec21 ond such determination with respect to the individ22 ual, and

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

24 third or subsequent such determination with respect

25 to the individual.
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1 ‘‘(4) In any case in which an individual’s benefit is

2 suspended for a period of 12 consecutive months for failure

3 to comply with treatment described in paragraph (2) of this

4 subsection, the month following such period shall be deemed,

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

6 (e)(1), or (f)(1) of section 202 (as applicable), as the termi7 nation month with respect to such entitlement.

8 ‘‘(5)(A) Subject to subparagraph (B), monthly insur9 ance benefits under this title which would be payable to any

10 individual (other than the disabled individual to whom ben11 efits are not payable by reason of this subsection) on the

12 basis of the wages and self-employment income of such dis13 abled individual but for the provisions of paragraph (1)

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

15 were receiving such benefits which are not payable under

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

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

18 though such disabled individual’s entitlement were not ter19 minated).

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

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

22 by reason of termination of entitlement under paragraph

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

24 other individual on the basis of the wages and self-employ25 ment income of such disabled individual pursuant to sub-
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1 paragraph (A) shall not be payable for any month after

2 2 years after the last month of such entitlement.

3 ‘‘(6)(A) The Secretary shall provide for the monitoring

4 and testing of all individuals who are receiving benefits

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

6 benefits are required to be undergoing treatment and com7 plying with the terms, conditions, and requirements thereof

8 as described in paragraph (2)(A), in order to assure such

9 compliance and to determine the extent to which the imposi10 tion of such requirements is contributing to the achievement

11 of the purposes of this title. The Secretary shall annually

12 submit to the Congress a full and complete report on the

13 Secretary’s activities under this paragraph. Each such an14 nual report shall include the number and percentage of such

15 individuals who did not receive regular drug testing during

16 the year covered by the report.

17 ‘‘(B) The Secretary, in consultation with drug and al18 cohol treatment professionals, shall issue regulations—

19 ‘‘(i) defining appropriate treatment for alcohol20 ics and drug addicts who are subject to required med21 ical or psychological treatment under this subsection,

22 and

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

24 and evaluate their compliance, including measures of

25 the progress of participants in such programs.
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1 ‘‘(C)(i) For purposes of carrying out the requirements

2 of subparagraphs (A) and (B), the Secretary shall establish

3 in each State a referral and monitoring agency for such

4 State.

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

6 shall—

7 ‘‘(I) identify appropriate placements, for indi8 viduals residing in such State who are entitled to

9 benefits based on disability and with respect to whom

10 alcoholism or drug addiction is a contributing factor

11 material to the Secretary’s determination that they

12 are under a disability, where they may obtain treat13 ment described in paragraph (2)(A),

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

15 for such treatment, and

16 ‘‘(III) monitor compliance with the requirements

17 of paragraph (2)(A) by individuals who are referred

18 by the agency to such placements and promptly re19 port failures to comply to the Secretary.

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

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

22 or drug addiction is a contributing factor material to the

23 Secretary’s determination that the individual is under a

24 disability, payment of any past-due monthly insurance

25 benefits under this title to which such individual is entitled
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1 shall be made in any month only to the extent that the sum

2 of—

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

4 such month, and

5 ‘‘(B) the amount of any benefit for the preceding

6 month under such current entitlement which is pay7 able in such month,

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

9 for the preceding month.

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

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

12 contributing factor material to the Secretary’s determina13 tion that such individual is under a disability, the month

14 following the 36-month period beginning with such individ15 ual’s first month of entitlement shall be deemed, for pur16 poses of section 223(a)(1) or subsection (d)(1)(G)(i), (e)(1),

17 or (f)(1) of section 202 (as applicable), as the termination

18 month with respect to such entitlement, and such individual

19 shall be deemed not to be entitled to any past-due benefits

20 under such entitlement remaining unpaid as of the end of

21 such 36-month period. Such individual may not be entitled

22 to benefits based on disability for any month after such 36-

23 month period if, with respect to such entitlement, alcohol24 ism or drug addition is a contributing factor material to
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1 the Secretary’s determination that such individual is under

2 a disability.

3 ‘‘(9) For purposes of this subsection, the term ‘benefit

4 based on disability’ of an individual means a disability in5 surance benefit of such individual under section 223 or a

6 child’s, widow’s, or widower’s insurance benefit of such in7 dividual under section 202 based on the disability of such

8 individual.’’.

9 (B) PRESERVATION OF MEDICARE BENE10 FITS.—Section 226 of such Act (42 U.S.C. 426)

11 is amended by adding at the end the following:

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

13 benefit for any month is not payable by reason of para14 graph (1) of section 225(c) (and is not terminated by reason

15 of paragraph (4) or (8) of section 225(c)) shall be treated

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

17 would be entitled to such benefit for such month in the ab18 sence of such section.’’.paragraph (other than paragraphs

19 (6)(C) and (8) of section 225(c) of the Social Security Act

20 added by this paragraph) shall apply with respect to bene21 fits based on disability (as defined in section 225(c)(9) of

22 the Social Security Act, added by this section) of individ23 uals becoming entitled to such benefits for months beginning

24 after 180 days after the date of the enactment of this Act.

25 Section 225(c)(6)(C) of the Social Security Act shall take
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1 effect 180 days after the date of the enactment of this Act.

2 Section 225(c)(8) of the Social Security Act (added by this

3 section) shall apply with respect to benefits for months end4 ing after 180 days after the date of the enactment of this

5 Act, and, for purposes of such section 225(c)(8), in the case

6 of any individual entitled to benefits based on disability

7 (as so defined) for the first month ending after 180 days

8 after the date of the enactment of this Act, such month shall

9 be treated as such individual’s first month of entitlement

10 to such benefits.

11 (4) IRRELEVANCE OF LEGALITY OF SERVICES

12 PERFORMED IN DETERMINING SUBSTANTIAL GAINFUL

13 ACTIVITY.—

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

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

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

17 (ii) by adding at the end the following

18 new subparagraph:

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

20 services performed or earnings derived from services dem21 onstrate an individual’s ability to engage in substantial

22 gainful activity, the Secretary apply the criteria described

23 in subparagraph (A) with respect to services performed by

24 any individual without regard to the legality of such

25 services.’’.
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1 (B) EFFECTIVE DATE.—The amendments

2 made by this paragraph shall take effect on the

3 date of the enactment of this Act.

4 (b) AMENDMENTS RELATING TO SUPPLEMENTAL SE5 CURITY INCOME BENEFITS UNDER TITLE XVI OF THE SO6 CIAL SECURITY ACT.—

7 (1) REQUIRED PAYMENT OF BENEFITS TO REP8 RESENTATIVE PAYEES.—

9 (A) IN GENERAL.—Section 1631(a)(2)(A) of

10 the Social Security Act (42 U.S.C.

11 1383(a)(2)(A)) is amended—

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

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

14 entitled to benefits under this title by reason

15 of disability, if alcoholism or drug addic16 tion is a contributing factor material to the

17 Secretary’s determination that the individ18 ual is disabled, the payment of such benefits

19 to a representative payee shall be deemed to

20 serve the interest of such individual under

21 this title.’’; and

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

23 individual or eligible spouse or to an alter24 native representative payee of the individ25 ual or eligible spouse’’ and inserting ‘‘to an
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1 alternative representative payee of the indi2 vidual or eligible spouse or, if the interest of

3 the individual under this title would be

4 served thereby, to the individual or eligible

5 spouse’’.

6 (B) CONFORMING AMENDMENT.—Section

7 1631(a)(2)(B)(viii)(II) of such Act (42 U.S.C.

8 1383(a)(2)(B)(viii)(II)) is amended by striking

9 ‘‘15 years’’ and all that follows and inserting ‘‘of

10 15 years, or (if alcoholism or drug addition is a

11 contributing factor material to the Secretary’s

12 determination that the individual is disabled) is

13 entitled to benefits under this title by reason of

14 disability.’’.

15 (C) EFFECTIVE DATE.—The amendments

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

17 with respect to benefits for months beginning

18 after 180 days after the date of the enactment of

19 this Act.

20 (2) INCREASED RELIANCE ON PROFESSIONAL

21 REPRESENTATIVE PAYEES.—

22 (A) PREFERENCE REQUIRED FOR ORGANI23 ZATIONAL REPRESENTATIVE PAYEES.—Section

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

25 1383(a)(2)(B)) is amended—
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1 (i) by redesignating clauses (vii)

2 through (xii) as clauses (viii) through (xiii),

3 respectively;

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

5 following:

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

7 under this title by reason of disability, if alcoholism or drug

8 addiction is a contributing factor material to the Sec9 retary’s determination that the individual is disabled, when

10 selecting such individual’s representative payee, preference

11 shall be given to—

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

13 agency licensed or bonded by the State;

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

15 mission is to carry out income maintenance, social

16 service, or health care-related activities; or

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

18 fiduciary responsibilities,

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

20 appropriate), unless the Secretary determines that selection

21 of such an agency would not be appropriate.’’;

22 (iii) in clause (viii) (as so redesig23 nated), by striking ‘‘clause (viii)’’ and in24 serting ‘‘clause (ix)’’;
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1 (iv) in clause (ix) (as so redesignated),

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

3 (v) in clause (xiii) (as so redesig4 nated)—

5 (I) by striking ‘‘(xi)’’ and insert6 ing ‘‘(xii)’’; and

7 (II) by striking ‘‘(x)’’ and insert8 ing ‘‘(xi)’’.

9 (B) AVAILABILITY OF PUBLIC AGENCIES

10 AND OTHER QUALIFIED ORGANIZATIONS TO

11 SERVE AS REPRESENTATIVE PAYEES.—Section

12 1631(a)(2)(D) of such Act (42 U.S.C.

13 1383(a)(2)(D)) is amended—

14 (i) in clause (i)—

15 (I) by striking ‘‘exceed the lesser

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

17 (II) by striking subclauses (I) and

18 (II) and inserting the following:

19 ‘‘(I) in any case in which an individual is enti20 tled to benefits under this title by reason of disability

21 and alcoholism or drug addiction is a contributing

22 factor material to the Secretary’s determination that

23 the individual is disabled, 10 percent of the monthly

24 benefit involved, or

25 ‘‘(II) in any other case, the lesser of—
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1 ‘‘(aa) 10 percent of the monthly benefit in2 volved, or

3 ‘‘(bb) $25.00 per month.’’;

4 (ii) in clause (ii)—

5 (I) by inserting ‘‘State or local

6 government agency whose mission is to

7 carry out income maintenance, social

8 service, or health care-related activities,

9 any State or local government agency

10 with fiduciary responsibilities, or any’’

11 after ‘‘means any’’;

12 (II) by inserting a comma after

13 ‘‘service agency’’;

14 (III) by adding ‘‘and’’ at the end

15 of subclause (I); and

16 (IV) in subclause (II)—

17 (aa) by adding ‘‘and’’ at the

18 end of item (aa);

19 (bb) by striking ‘‘; and’’ at

20 the end of item (bb) and inserting

21 a period; and

22 (cc) by striking item (cc);

23 and

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

25 July 1, 1994.
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1 (3) NONPAYMENT OR TERMINATION OF BENE2 FITS.—

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

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

5 redesignating subparagraph (B) as subpara6 graph (C) and by inserting after subparagraph

7 (A) the following:

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

9 title, in the case of any individual entitled to benefits under

10 this title solely by reason of disability, if alcoholism or drug

11 addiction is a contributing factor material to the Sec12 retary’s determination that such individual is disabled and

13 such individual is determined by the Secretary not to be

14 in compliance with the requirements of this subparagraph

15 for a month, such benefits shall be suspended for a period

16 commencing with such month and ending with the month

17 preceding the first month, after the determination of non18 compliance, in which such individual demonstrates that he

19 or she has reestablished and maintained compliance with

20 such requirements for the applicable period specified in

21 clause (iii).

22 ‘‘(ii)(I) An individual described in clause (i) is in

23 compliance with the requirements of this subparagraph for

24 a month if the individual in such month undergoes any

25 medical or psychological treatment that may be appro-
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1 priate, for the individual’s condition diagnosed as substance

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

3 rehabilitation, at an institution or facility approved for

4 purposes of this subparagraph by the Secretary, and com5 plies in such month with the terms, conditions, and require6 ments of such treatment and with requirements imposed by

7 the Secretary under subparagraph (C).

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

9 be determined to be not in compliance with the require10 ments of this subparagraph for a month if access by such

11 individual to such treatment is not reasonably available for

12 the month, as determined under regulations of the Sec13 retary.

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

15 is—

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

17 determination that an individual is not in compli18 ance with the requirements of this subparagraph;

19 ‘‘(II) 3 consecutive months, in the case of the 2nd

20 such determination with respect to the individual; or

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

22 3rd or subsequent such determination with respect to

23 the individual.

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

25 for purposes of this title for the 12-month period that begins
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1 with the end of any period of 12 consecutive months for

2 which the benefits of the individual under this title have

3 been suspended by reason of this subparagraph.

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

5 under this title by reason of disability, if alcoholism or drug

6 addiction is a contributing factor material to the Sec7 retary’s determination that such individual is disabled,

8 such individual may not be entitled to such benefits by rea9 son of disability (or any past-due benefits under such enti10 tlement) for any month after the 36-month period beginning

11 with such individual’s first month of such entitlement, not12 withstanding section 1619(a).

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

14 an individual described in clause (i) benefits under this title

15 the payment of which is past due, in an amount that ex16 ceeds the amount of benefits under this title which are pay17 able to the individual for the month and the payment of

18 which is not past due.

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

20 ‘benefits under this title’ includes supplementary payments

21 of the type described in section 1616(a) and payments pur22 suant to an agreement entered into under section 212(a)

23 of Public Law 93–66.’’.

24 (B) REFERRAL, MONITORING, AND TREAT25 MENT.—Section 1611(e)(3)(C) of such Act (42
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1 U.S.C. 1382(e)(3)(C)), as so designated by the

2 amendment made by subparagraph (A) of this

3 paragraph, is amended—

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

5 ‘‘Each such annual report shall include the

6 number and percentage of such individuals

7 who did not receive regular drug testing

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

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

10 (iii) by adding after and below the end

11 following:

12 ‘‘(ii) The Secretary, in consultation with drug and al13 cohol treatment professionals, shall issue regulations—

14 ‘‘(I) defining appropriate treatment for alcohol15 ics and drug addicts who are subject to required med16 ical or psychological treatment under this subpara17 graph; and

18 ‘‘(II) establishing guidelines to be used to review

19 and evaluate their compliance, including measures of

20 the progress of participants in such programs.

21 ‘‘(iii)(I) For purposes of carrying out the requirements

22 of clauses (i) and (ii), the Secretary shall establish in each

23 State a referral and monitoring agency for the State.

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

25 shall—
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1 ‘‘(aa) identify appropriate placements, for indi2 viduals residing in the State who are entitled to bene3 fits under this title by reason of disability and with

4 respect to whom alcoholism or drug addiction is a

5 contributing factor material to the Secretary’s deter6 mination that they are disabled, where they may ob7 tain treatment described in subparagraph (B)(ii)(I);

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

9 for such treatment; and

10 ‘‘(cc) monitor compliance with the requirements

11 of subparagraph (B) by individuals who are referred

12 by the agency to such placements, and promptly re13 port to the Secretary any failure to comply with such

14 requirements.’’.

15 (C) PRESERVATION OF MEDICAID BENE16 FITS.—Section 1634 of such Act (42 U.S.C.

17 13283c) is amended by adding at the end the fol18 lowing:

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

20 reason of disability are not payable for any month solely

21 by reason of section 1611(e)(3)(B) shall be treated, for pur22 poses of title XIX, as receiving benefits under this title for

23 such month.’’.

24 (D) CONFORMING AMENDMENTS.—Section

25 1611(e)(3) of such Act (42 U.S.C. 1382(e)(3)), as
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1 amended by subparagraphs (A) and (B) of this

2 paragraph, is amended—

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

4 ‘‘(B)’’ and inserting ‘‘(C)’’; and

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

6 ‘‘or (B)’’ after ‘‘(A)’’.

7 (E) EFFECTIVE DATE.—

8 (i) IN GENERAL.—Except as provided

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

10 made by this paragraph shall apply with

11 respect to benefits for months beginning

12 after 180 days after the date of the enact13 ment of this Act.

14 (ii) TIME LIMITATION ON BENEFITS.—

15 Section 1611(e)(3)(B)(v) of the Social Secu16 rity Act (as added by the amendment made

17 by subparagraph (A) of this paragraph)

18 shall apply with respect to benefits for

19 months ending after 180 days after the date

20 of the enactment of this Act, and, for pur21 poses of such section, in the case of any in22 dividual entitled to benefits by reason of

23 disability for the first month ending after

24 180 days after the date of the enactment of

25 this Act, such month shall be treated as such
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1 individual’s first month of entitlement to

2 such benefits.

3 (iii) ESTABLISHMENT OF REFERRAL

4 AND MONITORING AGENCIES.—Section

5 1611(e)(3)(C)(iii) of the Social Security Act

6 (as added by the amendment made by sub7 paragraph (B)(iii) of this paragraph) shall

8 take effect 180 days after the date of the en9 actment of this Act.

10 (4) IRRELEVANCE OF LEGALITY OF SUBSTANTIAL

11 GAINFUL ACTIVITY.—

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

13 such Act (42 U.S.C. 1382c(a)(3)(D)) is amended

14 by adding at the end the following: ‘‘The Sec15 retary shall make determinations under this title

16 with respect to substantial gainful activity, with17 out regard to the legality of the activity.’’.

18 (B) EFFECTIVE DATE.—The amendment

19 made by subparagraph (A) shall take effect on

20 the date of the enactment of this Act.

21 (c) EFFECTIVE DATE.—The amendments made by the

22 preceding provisions of this section shall apply to benefits

23 payable for months beginning 180 or more days after the

24 date of the enactment of this Act.

25 (d) DEMONSTRATION PROJECTS.—
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1 (1) IN GENERAL.—The Secretary of Health and

2 Human Services shall develop and carry out dem3 onstration projects designed to explore innovative re4 ferral, monitoring, and treatment approaches with re5 spect to—

6 (A) individuals who are entitled to disabil7 ity insurance benefits or child’s, widow’s, or wid8 ower’s insurance benefits based on disability

9 under title II of the Social Security Act, and

10 (B) individuals who are eligible for supple11 mental security income benefits under title XVI

12 of such Act based solely on disability,

13 in cases in which alcoholism or drug addiction is a

14 contributing factor material to the Secretary’s deter15 mination that individuals are under a disability.

16 (2) SCOPE.—The demonstration projects devel17 oped under paragraph (1) shall be of sufficient scope

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

19 permit a thorough evaluation of the alternative ap20 proaches under consideration while giving assurance

21 that the results derived from the projects will obtain

22 generally in the operation of the programs involved

23 without committing such programs to the adoption of

24 any particular system either locally or nationally.
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1 (3) FINAL REPORT.—The Secretary shall submit

2 to the Committee on Ways and Means of the House

3 of Representatives and the Committee on Finance of

4 the Senate no later than December 31, 1997, a final

5 report on the demonstration projects carried out

6 under this subsection, together with any related data

7 and materials which the Secretary may consider ap8 propriate. The authority under this section shall ter9 minate upon the transmittal of such final report.

10 SEC. 202. ISSUANCE OF PHYSICAL DOCUMENTS IN THE

11 FORM OF BONDS, NOTES, OR CERTIFICATES

12 TO THE SOCIAL SECURITY TRUST FUNDS.

13 (a) REQUIREMENT THAT OBLIGATIONS ISSUED TO

14 THE OASDI TRUST FUNDS BE EVIDENCED BY PAPER IN15 STRUMENTS IN THE FORM OF BONDS, NOTES, OR CERTIFI16 CATES OF INDEBTEDNESS SETTING FORTH THEIR

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

18 U.S.C. 401(d)) is amended by inserting after the fifth sen19 tence the following new sentence: ‘‘Each obligation issued

20 for purchase by the Trust Funds under this subsection shall

21 be evidenced by a paper instrument in the form of a bond,

22 note, or certificate of indebtedness issued by the Secretary

23 of the Treasury setting forth the principal amount, date of

24 maturity, and interest rate of the obligation, and stating

25 on its face that the obligation shall be incontestable in the
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1 hands of the Trust Fund to which it is issued, that the obli2 gation is supported by the full faith and credit of the United

3 States, and that the United States is pledged to the payment

4 of the obligation with respect to both principal and

5 interest.’’.

6 (b) PAYMENT TO THE OASDI TRUST FUNDS FROM

7 THE GENERAL FUND OF THE TREASURY OF INTEREST ON

8 OBLIGATIONS, AND OF PROCEEDS FROM THE SALE OR RE9 DEMPTION OF OBLIGATIONS, REQUIRED TO BE IN THE

10 FORM OF CHECKS.—Section 201(f) of such Act (42 U.S.C.

11 401(f)) is amended by adding at the end the following new

12 sentence: ‘‘Payment from the general fund of the the Treas13 ury to either of the Trust Funds of any such interest or

14 proceeds shall be in the form of paper checks drawn on such

15 general fund to the order of such Trust Fund.’’.

16 (c) EFFECTIVE DATE.—

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

18 this section shall apply with respect to obligations is19 sued, and payments made, after 60 days after the

20 date of the enactment of this Act.

21 (2) TREATMENT OF OUTSTANDING OBLIGA22 TIONS.—Not later than 60 days after the date of the

23 enactment of this Act, the Secretary of the Treasury

24 shall issue to the Federal Old-Age and Survivors In25 surance Trust Fund or the Federal Disability Insur-
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1 ance Trust Fund, as applicable, a paper instrument,

2 in the form of a bond, note, or certificate of indebted3 ness, for each obligation which has been issued to the

4 Trust Fund under section 201(d) of the Social Secu5 rity Act and which is outstanding as of such date.

6 Each such document shall set forth the principal

7 amount, date of maturity, and interest rate of the ob8 ligation, and shall state on its face that the obligation

9 shall be incontestable in the hands of the Trust Fund

10 to which it was issued, that the obligation is sup11 ported by the full faith and credit of the United

12 States, and that the United States is pledged to the

13 payment of the obligation with respect to both prin14 cipal and interest.

15 SEC. 203. EXPLICIT REQUIREMENTS FOR MAINTENANCE OF

16 TELEPHONE ACCESS TO LOCAL OFFICES OF

17 THE SOCIAL SECURITY ADMINISTRATION.

18 (a) MAINTENANCE OF SERVICE TO LOCAL OFFICES.—

19 (1) IN GENERAL.—Section 5110(a) of the Omni20 bus Budget Reconciliation Act of 1990 (104 Stat.

21 1388–272) is amended by adding at the end the fol22 lowing new sentence: ‘‘In carrying out the require23 ments of the preceding sentence, the Secretary shall

24 reestablish and maintain in service at least the same

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

2 for connections to such lines.’’.

3 (2) EFFECTIVE DATE.—The Secretary of Health

4 and Human Services shall ensure that the require5 ments of the amendment made by paragraph (1) are

6 carried out no later than 90 days after the date of the

7 enactment of this Act.

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

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

11 local office of the Social Security Administration

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

13 of this Act and shall report his findings to the Com14 mittee on Ways and Means of the House of Represent15 atives and the Committee on Finance of the Senate no

16 later than 150 days after the date of the enactment

17 of this Act.

18 (b) MAINTENANCE OF TOLL-FREE TELEPHONE NUM19 BER SERVICE.—The Secretary of Health and Human Serv20 ices shall ensure that toll-free telephone service provided by

21 the Social Security Administration is maintained at a level

22 which is at least equal to that in effect on the date of the

23 enactment of this Act.
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1 SEC. 204. EXPANSION OF STATE OPTION TO EXCLUDE SERV2 ICE OF ELECTION OFFICIALS OR ELECTION

3 WORKERS FROM COVERAGE.

4 (a) LIMITATION ON MANDATORY COVERAGE OF STATE

5 ELECTION OFFICIALS AND ELECTION WORKERS WITHOUT

6 STATE RETIREMENT SYSTEM.—

7 (1) AMENDMENT TO SOCIAL SECURITY ACT.—

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

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

10 11332(a) of the Omnibus Budget Reconciliation Act

11 of 1990) is amended by striking ‘‘$100’’ and inserting

12 ‘‘$1,000 with respect to service performed during

13 1995, and the adjusted amount determined under sec14 tion 218(c)(8)(B) for any subsequent year with re15 spect to service performed during such subsequent

16 year’’.

17 (2) AMENDMENT TO FICA.—Section

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

19 1986 (as amended by section 11332(b) of the Omnibus

20 Budget Reconciliation Act of 1990) is amended by

21 striking ‘‘$100’’ and inserting ‘‘$1,000 with respect to

22 service performed during 1995, and the adjusted

23 amount determined under section 218(c)(8)(B) of the

24 Social Security Act for any subsequent year with re25 spect to service performed during such subsequent

26 year’’.
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1 (b) CONFORMING AMENDMENTS RELATING TO MEDI2 CARE QUALIFIED GOVERNMENT EMPLOYMENT.—

3 (1) AMENDMENT TO SOCIAL SECURITY ACT.—

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

5 U.S.C. 410(p)(2)(E)) is amended by striking ‘‘$100’’

6 and inserting ‘‘$1,000 with respect to service per7 formed during 1995, and the adjusted amount deter8 mined under section 218(c)(8)(B) for any subsequent

9 year with respect to service performed during such

10 subsequent year’’.

11 (2) AMENDMENT TO FICA.—Section

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

13 1986 is amended by striking ‘‘$100’’ and inserting

14 ‘‘$1,000 with respect to service performed during

15 1995, and the adjusted amount determined under sec16 tion 218(c)(8)(B) of the Social Security Act for any

17 subsequent year with respect to service performed dur18 ing such subsequent year’’.

19 (c) AUTHORITY FOR STATES TO MODIFY COVERAGE

20 AGREEMENTS WITH RESPECT TO ELECTION OFFICIALS

21 AND ELECTION WORKERS.—Section 218(c)(8) of the Social

22 Security Act (42 U.S.C. 418(c)(8)) is amended—

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

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

2 with respect to service performed during 1995, and

3 the adjusted amount determined under subparagraph

4 (B) for any subsequent year with respect to service

5 performed during such subsequent year’’; and

6 (3) by striking the last sentence and inserting

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

8 agreement pursuant to this paragraph shall be effec9 tive with respect to services performed in and after

10 the calendar year in which the modification is mailed

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

12 (d) INDEXATION OF EXEMPT AMOUNT.—Section

13 218(c)(8) of such Act (as amended by subsection (c)) is fur14 ther amended—

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

16 (2) by adding at the end the following new sub17 paragraph:

18 ‘‘(B) For each year after 1995, the Secretary shall ad19 just the amount referred to in subparagraph (A) at the same

20 time and in the same manner as is provided under section

21 215(a)(1)(B)(ii) with respect to the amounts referred to in

22 section 215(a)(1)(B)(i), except that—

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

24 shall be substituted for the calendar year referred to

25 in section 215(a)(1)(B)(ii)(II), and
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1 ‘‘(ii) such amount as so adjusted, if not a mul2 tiple of $100, shall be rounded to the next higher mul3 tiple of $100 where such amount is a multiple of $50

4 and to the nearest multiple of $100 in any other case.

5 The Secretary shall determine and publish in the Federal

6 Register each adjusted amount determined under this sub7 paragraph not later than November 1 preceding the year

8 for which the adjustment is made.’’.

9 (e) EFFECTIVE DATE.—The amendments made by sub10 sections (a), (b), and (c) shall apply with respect to service

11 performed on or after January 1, 1995.

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

13 AND LOCAL GOVERNMENTS AND FEDERAL

14 DISTRICT COURTS FOR JURY SELECTION

15 PURPOSES.

16 (a) IN GENERAL.—Section 205(c)(2) of the Social Se17 curity Act (42 U.S.C. 405(c)(2)) is amended—

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

19 the matter preceding subclause (I) and inserting

20 ‘‘(F)’’;

21 (2) by redesignating subparagraphs (E) and (F)

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

23 (3) by inserting after subparagraph (D) the fol24 lowing:

25 ‘‘(E)(i) It is the policy of the United States that—
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1 ‘‘(I) any State (or any political subdivision of a

2 State) may utilize the social security account num3 bers issued by the Secretary for the additional pur4 poses described in clause (ii) if such numbers have

5 been collected and are otherwise utilized by such State

6 (or political subdivision) in accordance with applica7 ble law, and

8 ‘‘(II) any district court of the United States may

9 use, for such additional purposes, any such social se10 curity account numbers which have been so collected

11 and are so utilized by any State.

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

13 are the following:

14 ‘‘(I) Identifying duplicate names of individuals

15 on master lists used for jury selection purposes.

16 ‘‘(II) Identifying on such master lists those indi17 viduals who are ineligible to serve on a jury by rea18 son of their conviction of a felony.

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

20 enacted before the date of the enactment of this subpara21 graph is inconsistent with the policy set forth in clause (i),

22 such provision shall, on and after that date, be null, void,

23 and of no effect.
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1 ‘‘(iv) For purposes of this subparagraph, the term

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

3 (D).’’.

4 (b) EFFECTIVE DATE.—The amendments made by sub5 section (a) shall take effect on the date of the enactment

6 of this Act.

7 SEC. 206. AUTHORIZATION FOR ALL STATES TO EXTEND

8 COVERAGE TO STATE AND LOCAL POLICEMEN

9 AND FIREMEN UNDER EXISTING COVERAGE

10 AGREEMENTS.

11 (a) IN GENERAL.—Section 218(l) of the Social Secu12 rity Act (42 U.S.C. 418(l)) is amended—

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

14 ‘‘(l)’’, and by striking ‘‘the State of’’ and all that fol15 lows through ‘‘prior to the date of enactment of this

16 subsection’’ and inserting ‘‘a State entered into pur17 suant to this section’’; and

18 (2) by striking paragraph (2).

19 (b) CONFORMING AMENDMENT.—Section 218(d)(8)(D)

20 of such Act (42 U.S.C. 418(d)(8)(D)) is amended by strik21 ing ‘‘agreements with the States named in’’ and inserting

22 ‘‘State agreements modified as provided in’’.

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

24 section shall apply with respect to modifications filed by

25 States after the date of the enactment of this Act.
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1 SEC. 207. LIMITED EXEMPTION FOR CANADIAN MINISTERS

2 FROM CERTAIN SELF-EMPLOYMENT TAX LI3 ABILITY.

4 (a) IN GENERAL.—Notwithstanding any other provi5 sion of law, if—

6 (1) an individual performed services described in

7 section 1402(c)(4) of the Internal Revenue Code of

8 1986 which are subject to tax under section 1401 of

9 such Code,

10 (2) such services were performed in Canada at a

11 time when no agreement between the United States

12 and Canada pursuant to section 233 of the Social Se13 curity Act was in effect, and

14 (3) such individual was required to pay con15 tributions on the earnings from such services under

16 the social insurance system of Canada,

17 then such individual may file a certificate under this sec18 tion in such form and manner, and with such official, as

19 may be prescribed in regulations issued under chapter 2

20 of such Code. Upon the filing of such certificate, notwith21 standing any judgment which has been entered to the con22 trary, such individual shall be exempt from payment of

23 such tax with respect to services described in paragraphs

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

25 to pay such tax or to file a self-employment tax return as

26 required under section 6017 of such Code.
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1 (b) PERIOD FOR FILING.—A certificate referred to in

2 subsection (a) may be filed only during the 180-day period

3 commencing with the date on which the regulations referred

4 to in subsection (a) are issued.

5 (c) TAXABLE YEARS AFFECTED BY CERTIFICATE.—A

6 certificate referred to in subsection (a) shall be effective for

7 taxable years ending after December 31, 1978, and before

8 January 1, 1985.

9 (d) RESTRICTION ON CREDITING OF EXEMPT SELF10 EMPLOYMENT INCOME.—In any case in which an individ11 ual is exempt under this section from paying a tax imposed

12 under section 1401 of the Internal Revenue Code of 1986,

13 any income on which such tax would have been imposed

14 but for such exemption shall not constitute self-employment

15 income under section 211(b) of the Social Security Act (42

16 U.S.C. 411(b)), and, if such individual’s primary insurance

17 amount has been determined under section 215 of such Act

18 (42 U.S.C. 415), notwithstanding section 215(f)(1) of such

19 Act, the Secretary of Health and Human Services shall re20 compute such primary insurance amount so as to take into

21 account the provisions of this subsection. The recomputation

22 under this subsection shall be effective with respect to bene23 fits for months following approval of the certificate of ex24 emption.
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1 SEC. 208. EXCLUSION OF TOTALIZATION BENEFITS FROM

2 THE APPLICATION OF THE WINDFALL ELIMI3 NATION PROVISION.

4 (a) IN GENERAL.—Section 215(a)(7) of the Social Se5 curity Act (42 U.S.C. 415(a)(7)) is amended—

6 (1) in subparagraph (A), by striking ‘‘but ex7 cluding’’ and all that follows through ‘‘1937’’ and in8 serting ‘‘but excluding (I) a payment under the Rail9 road Retirement Act of 1974 or 1937, and (II) a pay10 ment by a social security system of a foreign country

11 based on an agreement concluded between the United

12 States and such foreign country pursuant to section

13 233’’; and

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

15 the case of an individual’’ the following: ‘‘whose eligi16 bility for old-age or disability insurance benefits is

17 based on an agreement concluded pursuant to section

18 233 or an individual’’.

19 (b) CONFORMING AMENDMENT RELATING TO BENE20 FITS UNDER 1939 ACT.—Section 215(d)(3) of such Act (42

21 U.S.C. 415(d)(3)) is amended by striking ‘‘but excluding’’

22 and all that follows through ‘‘1937’’ and inserting ‘‘but ex23 cluding (I) a payment under the Railroad Retirement Act

24 of 1974 or 1937, and (II) a payment by a social security

25 system of a foreign country based on an agreement con-
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1 cluded between the United States and such foreign country

2 pursuant to section 233’’.

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

4 section shall apply (notwithstanding section 215(f)(1) of the

5 Social Security Act (42 U.S.C. 415(f)(1))) with respect to

6 benefits payable for months after January 1995.

7 SEC. 209. EXCLUSION OF MILITARY RESERVISTS FROM AP8 PLICATION OF THE GOVERNMENT PENSION

9 OFFSET AND WINDFALL ELIMINATION PROVI10 SIONS.

11 (a) EXCLUSION FROM GOVERNMENT PENSION OFFSET

12 PROVISIONS.—Subsections (b)(4), (c)(2), (e)(7), (f)(2), and

13 (g)(4) of section 202 of the Social Security Act (42 U.S.C.

14 402 (b)(4), (c)(2), (e)(7), (f)(2), and (g)(4)) are each amend15 ed—

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

17 subparagraph (B) applies.’’;

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

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

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

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

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

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

24 ‘‘(B)(i) Subparagraph (A)(i) shall not apply with re25 spect to monthly periodic benefits based wholly on service
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1 as a member of a uniformed service (as defined in section

2 210(m)).’’.

3 (b) EXCLUSION FROM WINDFALL ELIMINATION PROVI4 SIONS.—Section 215(a)(7)(A) of such Act (as amended by

5 section 210(a) of this Act) and section 215(d)(3) of such

6 Act (as amended by section 210(b) of this Act) are each

7 further amended—

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

9 (2) by striking ‘‘section 233’’ and inserting ‘‘sec10 tion 233, and (III) a payment based wholly on serv11 ice as a member of a uniformed service (as defined in

12 section 210(m))’’.

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

14 section shall apply (notwithstanding section 215(f) of the

15 Social Security Act) with respect to benefits payable for

16 months after January 1995.

17 SEC. 210. REPEAL OF THE FACILITY-OF-PAYMENT PROVI18 SION.

19 (a) REPEAL OF RULE PRECLUDING REDISTRIBUTION

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

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

22 (b) COORDINATION UNDER FAMILY MAXIMUM OF RE23 DUCTION IN BENEFICIARY’S AUXILIARY BENEFITS WITH

24 SUSPENSION OF AUXILIARY BENEFITS OF OTHER BENE25 FICIARY UNDER EARNINGS TEST.—Section 203(a)(4) of
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1 such Act (42 U.S.C. 403(a)(4)) is amended by striking ‘‘sec2 tion 222(b). Whenever’’ and inserting the following: ‘‘section

3 222(b). Notwithstanding the preceding sentence, any reduc4 tion under this subsection in the case of an individual who

5 is entitled to a benefit under subsection (b), (c), (d), (e),

6 (f), (g), or (h) of section 202 for any month on the basis

7 of the same wages and self-employment income as another

8 person—

9 ‘‘(A) who also is entitled to a benefit under sub10 section (b), (c), (d), (e), (f), (g), or (h) of section 202

11 for such month,

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

13 such individual, and

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

15 (in whole or in part) pursuant to subsection (h)(3) of

16 this section,

17 shall be made before the suspension under subsection (h)(3).

18 Whenever’’.

19 (c) CONFORMING AMENDMENT APPLYING EARNINGS

20 REPORTING REQUIREMENT DESPITE SUSPENSION OF BEN21 EFITS.—The third sentence of section 203(h)(1)(A) of such

22 Act (42 U.S.C. 403(h)(1)(A)) is amended by striking ‘‘Such

23 report need not be made’’ and all that follows through ‘‘The

24 Secretary may grant’’ and inserting the following: ‘‘Such

25 report need not be made for any taxable year—
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1 ‘‘(i) beginning with or after the month in which

2 such individual attained age 70, or

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

4 taxable year) in which such individual is under age

5 70 have been suspended under the provisions of the

6 first sentence of paragraph (3) of this subsection, un7 less—

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

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

10 of section 202,

11 ‘‘(II) such benefits are reduced under sub12 section (a) of this section for any month in such

13 taxable year, and

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

15 person who also is entitled to benefits under sub16 section (b), (c), (d), (e), (f), (g), or (h) of section

17 202 on the basis of the same wages and self-em18 ployment income and who does not live in the

19 same household as such individual.

20 The Secretary may grant’’.

21 (d) CONFORMING AMENDMENT DELETING SPECIAL IN22 COME TAX TREATMENT OF BENEFITS NO LONGER RE23 QUIRED BY REASON OF REPEAL.—Section 86(d)(1) of the

24 Internal Revenue Code of 1986 (relating to income tax on
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1 social security benefits) is amended by striking the last

2 sentence.

3 (e) EFFECTIVE DATES.—

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

5 (b), and (c) shall apply with respect to benefits pay6 able for months after December 1995.

7 (2) The amendment made by subsection (d) shall

8 apply with respect to benefits received after December

9 31, 1995, in taxable years ending after such date.

10 SEC. 211. MAXIMUM FAMILY BENEFITS IN GUARANTEE

11 CASES.

12 (a) IN GENERAL.—Section 203(a) of the Social Secu13 rity Act (42 U.S.C. 403(a)) is amended by adding at the

14 end the following new paragraph:

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

16 ‘‘(i) the total monthly benefits to which bene17 ficiaries may be entitled under sections 202 and 223

18 for a month on the basis of the wages and self-employ19 ment income of an individual whose primary insur20 ance amount is computed under section

21 215(a)(2)(B)(i) shall equal the total monthly benefits

22 which were authorized by this section with respect to

23 such individual’s primary insurance amount for the

24 last month of his prior entitlement to disability in25 surance benefits, increased for this purpose by the
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1 general benefit increases and other increases under

2 section 215(i) that would have applied to such total

3 monthly benefits had the individual remained entitled

4 to disability insurance benefits until the month in

5 which he became entitled to old-age insurance benefits

6 or reentitled to disability insurance benefits or died,

7 and

8 ‘‘(ii) the total monthly benefits to which bene9 ficiaries may be entitled under sections 202 and 223

10 for a month on the basis of the wages and self-employ11 ment income of an individual whose primary insur12 ance amount is computed under section 215(a)(2)(C)

13 shall equal the total monthly benefits which were au14 thorized by this section with respect to such individ15 ual’s primary insurance amount for the last month of

16 his prior entitlement to disability insurance benefits.

17 ‘‘(B) In any case in which—

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

19 such individual’s primary insurance amount for the

20 last month of his prior entitlement to disability in21 surance benefits was computed under paragraph (6),

22 and

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

24 is computed under subparagraph (B)(i) or (C) of sec-
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1 tion 215(a)(2) by reason of the individual’s entitle2 ment to old-age insurance benefits or death,

3 the total monthly benefits shall equal the total monthly ben4 efits that would have been authorized with respect to the

5 primary insurance amount for the last month of his prior

6 entitlement to disability insurance benefits if such total

7 monthly benefits had been computed without regard to

8 paragraph (6).

9 ‘‘(C) This paragraph shall apply before the application

10 of paragraph (3)(A), and before the application of section

11 203(a)(1) of this Act as in effect in December 1978.’’.

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

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

14 ‘‘Subject to paragraph (7),’’ and inserting ‘‘Subject to para15 graph (7) and except as otherwise provided in paragraph

16 (10)(C),’’.

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

18 section shall apply for the purpose of determining the total

19 monthly benefits to which beneficiaries may be entitled

20 under sections 202 and 223 of the Social Security Act based

21 on the wages and self-employment income of an individual

22 who—

23 (1) becomes entitled to an old-age insurance ben24 efit under section 202(a) of such Act,
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1 (2) becomes reentitled to a disability insurance

2 benefit under section 223 of such Act, or

3 (3) dies,

4 after January 1995.

5 SEC. 212. AUTHORIZATION FOR DISCLOSURE BY THE SEC6 RETARY OF HEALTH AND HUMAN SERVICES

7 OF INFORMATION FOR PURPOSES OF PUBLIC

8 OR PRIVATE EPIDEMIOLOGICAL AND SIMILAR

9 RESEARCH.

10 (a) IN GENERAL.—Section 1106 of the Social Security

11 Act (42 U.S.C. 1306) is amended—

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

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

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

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

16 (e)’’; and

17 (3) by inserting after subsection (c) the following

18 new subsection:

19 ‘‘(d) Notwithstanding any other provision of this sec20 tion, in any case in which—

21 ‘‘(1) information regarding whether an individ22 ual is shown on the records of the Secretary as being

23 alive or deceased is requested from the Secretary for

24 purposes of epidemiological or similar research which
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1 the Secretary finds may reasonably be expected to

2 contribute to a national health interest, and

3 ‘‘(2) the requester agrees to reimburse the Sec4 retary for providing such information and to comply

5 with limitations on safeguarding and rerelease or

6 redisclosure of such information as may be specified

7 by the Secretary,

8 the Secretary shall comply with such request, except to the

9 extent that compliance with such request would constitute

10 a violation of the terms of any contract entered into under

11 section 205(r).’’.

12 (b) AVAILABILITY OF INFORMATION RETURNS RE13 GARDING WAGES PAID EMPLOYEES.—Section 6103(l)(5) of

14 the Internal Revenue Code of 1986 (relating to disclosure

15 of returns and return information to the Department of

16 Health and Human Services for purposes other than tax

17 administration) is amended—

18 (1) by striking ‘‘for the purpose of’’ and insert19 ing ‘‘for the purpose of—’’;

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

21 with an agreement’’ and inserting the following:

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

23 agreement’’;

24 (3) by striking ‘‘program.’’ and inserting ‘‘pro25 gram; or’’; and
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1 (4) by adding at the end the following new sub2 paragraph:

3 ‘‘(B) providing information regarding the

4 mortality status of individuals for epidemiolog5 ical and similar research in accordance with sec6 tion 1106(d) of the Social Security Act.’’.

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

8 section shall apply with respect to requests for information

9 made after the date of the enactment of this Act.

10 SEC. 213. MISUSE OF SYMBOLS, EMBLEMS, OR NAMES IN

11 REFERENCE TO SOCIAL SECURITY PROGRAMS

12 AND AGENCIES.

13 (a) PROHIBITION OF UNAUTHORIZED REPRODUCTION,

14 REPRINTING, OR DISTRIBUTION FOR FEE OF CERTAIN OF15 FICIAL PUBLICATIONS.—Section 1140(a) of the Social Secu16 rity Act (42 U.S.C. 1320b–10(a)) is amended—

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

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

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

20 (3) by adding at the end the following new para21 graph:

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

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

24 other publication of the Social Security Administration un25 less such person has obtained specific, written authorization
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1 for such activity in accordance with regulations which the

2 Secretary shall prescribe.’’.

3 (b) ADDITION TO PROHIBITED WORDS, LETTERS,

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

5 1140(a) of such Act (as redesignated by subsection (a)) is

6 further amended—

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

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

9 ‘HCFA’,’’ and inserting ‘‘Administration’, ‘Depart10 ment of Health and Human Services’, ‘Health and

11 Human Services’, ‘Supplemental Security Income

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

13 ‘DHHS’, ‘HHS’, or ‘SSI’,’’; and

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

15 striking ‘‘Social Security Administration’’ each place

16 it appears and inserting ‘‘Social Security Adminis17 tration, Health Care Financing Administration, or

18 Department of Health and Human Services’’, and by

19 striking ‘‘or of the Health Care Financing Adminis20 tration’’.

21 (c) EXEMPTION FOR USE OF WORDS, LETTERS, SYM22 BOLS, AND EMBLEMS OF STATE AND LOCAL GOVERNMENT

23 AGENCIES BY SUCH AGENCIES.—Paragraph (1) of section

24 1140(a) of such Act (as redesignated by subsection (a)) is

25 further amended by adding at the end the following new
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1 sentence: ‘‘The preceding provisions of this subsection shall

2 not apply with respect to the use by any agency or instru3 mentality of a State or political subdivision of a State of

4 any words or letters which identify an agency or instru5 mentality of such State or of a political subdivision of such

6 State or the use by any such agency or instrumentality of

7 any symbol or emblem of an agency or instrumentality of

8 such State or a political subdivision of such State.’’.

9 (d) INCLUSION OF REASONABLENESS STANDARD.—

10 Section 1140(a)(1) of such Act (as amended by the preced11 ing provisions of this section) is further amended, in the

12 matter following subparagraph (B) (as redesignated), by

13 striking ‘‘convey’’ and inserting ‘‘convey, or in a manner

14 which reasonably could be interpreted or construed as

15 conveying,’’.

16 (e) INEFFECTIVENESS OF DISCLAIMERS.—Subsection

17 (a) of section 1140 of such Act (as amended by the preceding

18 provisions of this section) is further amended by adding at

19 the end the following new paragraph:

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

21 more words, letters, symbols, or emblems (or any combina22 tion or variation thereof) in connection with an item de23 scribed in paragraph (1) or the reproduction, reprinting,

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

25 a violation of this subsection shall be made without regard
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1 to any inclusion in such item (or any so reproduced, re2 printed, or distributed copy thereof) of a disclaimer of affili3 ation with the United States Government or any particular

4 agency or instrumentality thereof.’’.

5 (f) VIOLATIONS WITH RESPECT TO INDIVIDUAL

6 ITEMS.—Section 1140(b)(1) of such Act (42 U.S.C. 1320b–

7 10(b)(1)) is amended by adding at the end the following

8 new sentence: ‘‘In the case of any items referred to in sub9 section (a)(1) consisting of pieces of mail, each such piece

10 of mail which contains one or more words, letters, symbols,

11 or emblems in violation of subsection (a) shall represent a

12 separate violation. In the case of any item referred to in

13 subsection (a)(2), the reproduction, reprinting, or distribu14 tion of such item shall be treated as a separate violation

15 with respect to each copy thereof so reproduced, reprinted,

16 or distributed.’’.

17 (g) ELIMINATION OF CAP ON AGGREGATE LIABILITY

18 AMOUNT.—

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

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

21 (2) CONFORMING AMENDMENTS.—Section

22 1140(b) of such Act is further amended—

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

24 (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. 1320b–

9 10(c)(1)) is amended by inserting ‘‘and the first sentence

10 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)) is

14 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 fol23 lowing 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 De3 partment of Health and Human Services.’’.

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

5 amended by the preceding provisions of this section) is fur6 ther amended by adding at the end the following new sub7 section:

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

9 submitted pursuant to section 704 a report on the operation

10 of this section during the year covered by such annual re11 port. 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

19 section,

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 of

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

2 this section undertaken by the Inspector General dur3 ing the year,

4 ‘‘(5) the number of cases in which a demand let5 ter was sent during the year assessing a civil money

6 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 hearings

13 filed pursuant to sections 1140(c)(1) and 1128A(c)(2),

14 and

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

16 under this section deposited into the Federal Old-Age

17 and Survivors Insurance Trust Fund during the

18 year.’’.

19 (l) PROHIBITION OF MISUSE OF DEPARTMENT OF THE

20 TREASURY NAMES, SYMBOLS, ETC.—

21 (1) GENERAL RULE.—Subchapter II of chapter 3

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

23 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 connec4 tion with, or as a part of, any advertisement, solicitation,

5 business activity, or product, whether alone or with other

6 words, letters, symbols, or emblems—

7 ‘‘(1) the words ‘Department of the Treasury’, or

8 the name of any service, bureau, office, or other sub9 division 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 referred

20 to in paragraph (1) (including the design of any en21 velope or stationary used by such an entity), and

22 ‘‘(6) any colorable imitation of any such words,

23 titles, abbreviations, initials, symbols, or emblems,

24 in a manner which could reasonably be interpreted or con25 strued as conveying the false impression that such advertise26 ment, solicitation, business activity, or product is in any
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1 manner approved, endorsed, sponsored, or authorized by, or

2 associated with, the Department of the Treasury or any en3 tity referred to in paragraph (1) or any officer or employee

4 thereof.

5 ‘‘(b) TREATMENT OF DISCLAIMERS.—Any determina6 tion of whether a person has violated the provisions of sub7 section (a) shall be made without regard to any use of a

8 disclaimer of affiliation with the United States Government

9 or any particular agency or instrumentality thereof.

10 ‘‘(c) CIVIL PENALTY.—

11 ‘‘(1) IN GENERAL.—The Secretary of the Treas12 ury may impose a civil penalty on any person who

13 violates the provisions of subsection (a).

14 ‘‘(2) AMOUNT OF PENALTY.—The amount of the

15 civil penalty imposed by paragraph (1) shall not ex16 ceed $5,000 for each use of any material in violation

17 of subsection (a). If such use is in a broadcast or tele18 cast, the preceding sentence shall be applied by sub19 stituting ‘$25,000’ for ‘$5,000’.

20 ‘‘(3) TIME LIMITATIONS.—

21 ‘‘(A) ASSESSMENTS.—The Secretary of the

22 Treasury may assess any civil penalty under

23 paragraph (1) at any time before the end of the

24 3-year period beginning on the date of the viola-
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1 tion with respect to which such penalty is im2 posed.

3 ‘‘(B) CIVIL ACTION.—The Secretary of the

4 Treasury may commence a civil action to recover

5 any penalty imposed under this subsection at

6 any time before the end of the 2-year period be7 ginning on the date on which such penalty was

8 assessed.

9 ‘‘(4) COORDINATION WITH SUBSECTION (d).—No

10 penalty may be assessed under this subsection with

11 respect to any violation after a criminal proceeding

12 with respect to such violation has been commenced

13 under subsection (d).

14 ‘‘(d) CRIMINAL PENALTY.—

15 ‘‘(1) IN GENERAL.—If any person knowingly vio16 lates subsection (a), such person shall, upon convic17 tion thereof, be fined not more than $10,000 for each

18 such use or imprisoned not more than 1 year, or both.

19 If such use is in a broadcast or telecast, the preceding

20 sentence shall be applied by substituting ‘$50,000’ for

21 ‘$10,000’.

22 ‘‘(2) TIME LIMITATIONS.—No person may be

23 prosecuted, tried, or punished under paragraph (1)

24 for any violation of subsection (a) unless the indict25 ment is found or the information instituted during
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1 the 3-year period beginning on the date of the viola2 tion.

3 ‘‘(3) COORDINATION WITH SUBSECTION (c).—No

4 criminal proceeding may be commenced under this

5 subsection with respect to any violation if a civil pen6 alty has previously been assessed under subsection (c)

7 with respect to such violation.’’

8 (2) CLERICAL AMENDMENT.—The analysis for

9 chapter 3 of title 31, United States Code, is amended

10 by adding after the item relating to section 332 the

11 following new item:

‘‘333. Prohibition of misuse of Department of the Treasury names, symbols, etc.’’.

12 (3) REPORT.—Not later than May 1, 1996, the

13 Secretary of the Treasury shall submit a report to the

14 Committee on Ways and Means of the House of Rep15 resentatives and the Committee on Finance of the

16 Senate on the implementation of the amendments

17 made by this section. Such report shall include the

18 number of cases in which the Secretary has notified

19 persons of violations of section 333 of title 31, United

20 States Code (as added by subsection (a)), the number

21 of prosecutions commenced under such section, and

22 the total amount of the penalties collected in such

23 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. 214. INCREASED PENALTIES FOR UNAUTHORIZED DIS5 CLOSURE OF SOCIAL SECURITY INFORMA6 TION.

7 (a) UNAUTHORIZED DISCLOSURE.—Section 1106(a) of

8 the Social Security Act (42 U.S.C. 1306(a)) is amended—

9 (1) by striking ‘‘misdemeanor’’ and inserting

10 ‘‘felony’’;

11 (2) by striking ‘‘$1,000’’ and inserting ‘‘$10,000

12 for each occurrence of a violation’’; and

13 (3) by striking ‘‘one year’’ and inserting ‘‘5

14 years’’.

15 (b) UNAUTHORIZED DISCLOSURE BY FRAUD.—Section

16 1107(b) of such Act (42 U.S.C. 1307(b)) is amended—

17 (1) by inserting ‘‘social security account num18 ber,’’ after ‘‘information as to the’’;

19 (2) by striking ‘‘misdemeanor’’ and inserting

20 ‘‘felony’’;

21 (3) by striking ‘‘$1,000’’ and inserting ‘‘$10,000

22 for each occurrence of a violation’’; and

23 (4) by striking ‘‘one year’’ and inserting ‘‘5

24 years’’.
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1 (c) EFFECTIVE DATE.—The amendments made by this

2 section shall apply to violations occurring on or after the

3 date of the enactment of this Act.

4 SEC. 215. INCREASE IN AUTHORIZED PERIOD FOR EXTEN5 SION OF TIME TO FILE ANNUAL EARNINGS

6 REPORT.

7 (a) IN GENERAL.—Section 203(h)(1)(A) of the Social

8 Security Act (42 U.S.C. 403(h)(1)(A)) is amended in the

9 last sentence by striking ‘‘three months’’ and inserting ‘‘four

10 months’’.

11 (b) EFFECTIVE DATE.—The amendment made by sub12 section (a) shall apply with respect to reports of earnings

13 for taxable years ending on or after December 31, 1994.

14 SEC. 216. EXTENSION OF DISABILITY INSURANCE PROGRAM

15 DEMONSTRATION PROJECT AUTHORITY.

16 (a) IN GENERAL.—Section 505 of the Social Security

17 Disability Amendments of 1980 (Public Law 96–265), as

18 amended by section 12101 of the Consolidated Omnibus

19 Budget Reconciliation Act of 1985 (Public Law 99–272),

20 section 10103 of the Omnibus Budget Reconciliation Act of

21 1989 (Public Law 101–239), and section 5120 of the Omni22 bus Budget Reconciliation Act of 1990 (Public Law 101–

23 508) is further amended—

24 (1) in paragraph (3) of subsection (a), by strik25 ing ‘‘June 10, 1993’’ and inserting ‘‘June 10, 1996’’;
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1 (2) in paragraph (4) of subsection (a), by strik2 ing ‘‘1992’’ and inserting ‘‘1995’’; and

3 (3) in subsection (c), by striking ‘‘October 1,

4 1993’’ and inserting ‘‘October 1, 1996’’.

5 (b) EFFECTIVE DATE.—The amendments made by this

6 section shall take effect on the date of the enactment of this

7 Act.

8 SEC. 217. CROSS-MATCHING OF SOCIAL SECURITY ACCOUNT

9 NUMBER INFORMATION AND EMPLOYER

10 IDENTIFICATION NUMBER INFORMATION

11 MAINTAINED BY THE DEPARTMENT OF AGRI12 CULTURE.

13 (a) SOCIAL SECURITY ACCOUNT NUMBER INFORMA14 TION.—Clause (iii) of section 205(c)(2)(C) of the Social Se15 curity Act (42 U.S.C. 405(c)(2)(C)) (as added by section

16 1735(a)(3) of the Food, Agriculture, Conservation, and

17 Trade Act of 1990 (Public Law 101–624; 104 Stat. 3791))

18 is amended—

19 (1) by inserting ‘‘(I)’’ after ‘‘(iii)’’; and

20 (2) by striking ‘‘The Secretary of Agriculture

21 shall restrict’’ and all that follows and inserting the

22 following:

23 ‘‘(II) The Secretary of Agriculture may share any in24 formation contained in any list referred to in subclause (I)

25 with any other agency or instrumentality of the United
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1 States which otherwise has access to social security account

2 numbers in accordance with this subsection or other appli3 cable Federal law, except that the Secretary of Agriculture

4 may share such information only to the extent that such

5 Secretary determines such sharing would assist in verifying

6 and matching such information against information main7 tained by such other agency or instrumentality. Any such

8 information shared pursuant to this subclause may be used

9 by such other agency or instrumentality only for the pur10 pose of effective administration and enforcement of the Food

11 Stamp Act of 1977 or for the purpose of investigation of

12 violations of other Federal laws or enforcement of such laws.

13 ‘‘(III) The Secretary of Agriculture, and the head of

14 any other agency or instrumentality referred to in this

15 subclause, shall restrict, to the satisfaction of the Secretary

16 of Health and Human Services, access to social security ac17 count numbers obtained pursuant to this clause only to offi18 cers and employees of the United States whose duties or re19 sponsibilities require access for the purposes described in

20 subclause (II).

21 ‘‘(IV) The Secretary of Agriculture, and the head of

22 any agency or instrumentality with which information is

23 shared pursuant to clause (II), shall provide such other safe24 guards as the Secretary of Health and Human Services de-
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1 termines to be necessary or appropriate to protect the con2 fidentiality of the social security account numbers.’’.

3 (b) EMPLOYER IDENTIFICATION NUMBER INFORMA4 TION.—Subsection (f) of section 6109 of the Internal Reve5 nue Code of 1986 (as added by section 1735(c) of the Food,

6 Agriculture, Conservation, and Trade Act of 1990 (Public

7 Law 101–624; 104 Stat. 3792)) (relating to access to em8 ployer identification numbers by Secretary of Agriculture

9 for purposes of Food Stamp Act of 1977) is amended—

10 (1) by striking paragraph (2) and inserting the

11 following:

12 ‘‘(2) SHARING OF INFORMATION AND SAFE13 GUARDS.—

14 ‘‘(A) SHARING OF INFORMATION.—The Sec15 retary of Agriculture may share any information

16 contained in any list referred to in paragraph

17 (1) with any other agency or instrumentality of

18 the United States which otherwise has access to

19 employer identification numbers in accordance

20 with this section or other applicable Federal law,

21 except that the Secretary of Agriculture may

22 share such information only to the extent that

23 such Secretary determines such sharing would

24 assist in verifying and matching such informa25 tion against information maintained by such
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1 other agency or instrumentality. Any such infor2 mation shared pursuant to this subparagraph

3 may be used by such other agency or instrumen4 tality only for the purpose of effective adminis5 tration and enforcement of the Food Stamp Act

6 of 1977 or for the purpose of investigation of vio7 lations of other Federal laws or enforcement of

8 such laws.

9 ‘‘(B) SAFEGUARDS.—The Secretary of Agri10 culture, and the head of any other agency or in11 strumentality referred to in subparagraph (A),

12 shall restrict, to the satisfaction of the Secretary

13 of the Treasury, access to employer identification

14 numbers obtained pursuant to this subsection

15 only to officers and employees of the United

16 States whose duties or responsibilities require ac17 cess for the purposes described in subparagraph

18 (A). The Secretary of Agriculture, and the head

19 of any agency or instrumentality with which in20 formation is shared pursuant to subparagraph

21 (A), shall provide such other safeguards as the

22 Secretary of the Treasury determines to be nec23 essary or appropriate to protect the confidential24 ity of the employer identification numbers.’’;
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1 (2) in paragraph (3), by striking ‘‘by the Sec2 retary of Agriculture pursuant to this subsection’’ and

3 inserting ‘‘pursuant to this subsection by the Sec4 retary of Agriculture or the head of any agency or in5 strumentality with which information is shared pur6 suant to paragraph (2)’’, and by striking ‘‘social se7 curity account numbers’’ and inserting ‘‘employer

8 identification numbers’’; and

9 (3) in paragraph (4), by striking ‘‘by the Sec10 retary of Agriculture pursuant to this subsection’’ and

11 inserting ‘‘pursuant to this subsection by the Sec12 retary of Agriculture or any agency or instrumental13 ity with which information is shared pursuant to

14 paragraph (2)’’.

15 SEC. 218. CERTAIN TRANSFERS TO RAILROAD RETIREMENT

16 ACCOUNT MADE PERMANENT.

17 Subsection (c)(1)(A) of section 224 of the Railroad Re18 tirement Solvency Act of 1983 (relating to section 72(r) rev19 enue increase transferred to certain railroad accounts) is

20 amended by striking ‘‘with respect to benefits received before

21 October 1, 1992’’.
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1 SEC. 219. AUTHORIZATION FOR USE OF SOCIAL SECURITY

2 ACCOUNT NUMBERS BY DEPARTMENT OF

3 LABOR IN ADMINISTRATION OF FEDERAL

4 WORKERS’ COMPENSATION LAWS.

5 Section 205(c)(2)(C) of the Social Security Act (42

6 U.S.C. 405(c)(2)(C)) is amended by adding at the end the

7 following new clause:

8 ‘‘(ix) In the administration of the provisions of chapter

9 81 of title 5, United States Code, and the Longshore and

10 Harbor Workers’ Compensation Act (33 U.S.C. 901 et seq.),

11 the Secretary of Labor may require by regulation that any

12 person filing a notice of injury or a claim for benefits under

13 such provisions provide as part of such notice or claim such

14 person’s social security account number, subject to the re15 quirements of this clause. No officer or employee of the De16 partment of Labor shall have access to any such number

17 for any purpose other than the establishment of a system

18 of records necessary for the effective administration of such

19 provisions. The Secretary of Labor shall restrict, to the sat20 isfaction of the Secretary of Health and Human Services,

21 access to social security account numbers obtained pursuant

22 to this clause to officers and employees of the United States

23 whose duties or responsibilities require access for the ad24 ministration or enforcement of such provisions. The Sec25 retary of Labor shall provide such other safeguards as the

26 Secretary of Health and Human Services determines to be
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1 necessary or appropriate to protect the confidentiality of

2 the social security account numbers.’’.

3 SEC. 220. COVERAGE UNDER FICA OF FEDERAL EMPLOYEES

4 TRANSFERRED TEMPORARILY TO INTER5 NATIONAL ORGANIZATIONS.

6 (a) TREAMENT OF SERVICE IN THE EMPLOY OF

7 INTERNATIONAL ORGANIZATIONS BY CERTAIN TRANS8 FERRED FEDERAL EMPLOYEES.—

9 (1) IN GENERAL.—Section 3121 of the Internal

10 Revenue Code of 1986 (relating to definitions) is

11 amended by adding at the end the following new sub12 section:

13 ‘‘(y) SERVICE IN THE EMPLOY OF INTERNATIONAL OR14 GANIZATIONS BY CERTAIN TRANSFERRED FEDERAL EM15 PLOYEES.—

16 ‘‘(1) IN GENERAL.—For purposes of this chapter,

17 service performed in the employ of an international

18 organization by an individual pursuant to a transfer

19 of such individual to such international organization

20 pursuant to section 3582 of title 5, United States

21 Code, shall constitute ‘employment’ if—

22 ‘‘(A) immediately before such transfer, such

23 individual performed service with a Federal

24 agency which constituted ‘employment’ under
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1 subsection (b) for purposes of the taxes imposed

2 by sections 3101(a) and 3111(a), and

3 ‘‘(B) such individual would be entitled,

4 upon separation from such international organi5 zation and proper application, to reemployment

6 with such Federal agency under such section

7 3582.

8 ‘‘(2) DEFINITIONS.—For purposes of this sub9 section—

10 ‘‘(A) FEDERAL AGENCY.—The term ‘Federal

11 agency’ means an agency, as defined in section

12 3581(1) of title 5, United States Code.

13 ‘‘(B) INTERNATIONAL ORGANIZATION.—The

14 term ‘international organization’ has the mean15 ing provided such term by section 3581(3) of

16 title 5, United States Code.’’

17 (2) CONTRIBUTIONS BY FEDERAL AGENCY.—Sec18 tion 3122 of such Code (relating to Federal service)

19 is amended by inserting after the first sentence the

20 following new sentence: ‘‘In the case of the taxes im21 posed by this chapter with respect to service per22 formed in the employ of an international organiza23 tion pursuant to a transfer to which the provisions of

24 section 3121(y) are applicable, the determination of

25 the amount of remuneration for such service, and the
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1 return and payment of the taxes imposed by this

2 chapter, shall be made by the head of the Federal

3 agency from which the transfer was made.’’

4 (3) COLLECTION OF EMPLOYEE CONTRIBU5 TIONS.—Section 3102 of such Code (relating to deduc6 tion of tax from wages) is amended by adding at the

7 end the following new subsection:

8 ‘‘(e) SPECIAL RULE FOR CERTAIN TRANSFERRED

9 FEDERAL EMPLOYEES.—In the case of any payments of

10 wages for service performed in the employ of an inter11 national organization pursuant to a transfer to which the

12 provisions of section 3121(y) are applicable—

13 ‘‘(1) subsection (a) shall not apply,

14 ‘‘(2) the head of the Federal agency from which

15 the transfer was made shall separately include on the

16 statement required under section 6051—

17 ‘‘(A) the amount determined to be the

18 amount of the wages for such service, and

19 ‘‘(B) the amount of the tax imposed by sec20 tion 3101 on such payments, and

21 ‘‘(3) the tax imposed by section 3101 on such

22 payments shall be paid by the employee.’’

23 (4) EXCLUSION FROM TREATMENT AS TRADE OR

24 BUSINESS.—Paragraph (2)(C) of section 1402(c) of

25 such Code (defining trade or business) is amended by
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1 adding at the end the following: ‘‘except service which

2 constitutes ‘employment’ under section 3121(y),’’.

3 (5) CONFORMING AMENDMENT.—Paragraph (15)

4 of section 3121(b) of such Code is amended by insert5 ing ‘‘, except service which constitutes ‘employment’

6 under subsection (y)’’ after ‘‘organization’’.

7 (b) AMENDMENTS TO THE SOCIAL SECURITY ACT.—

8 (1) IN GENERAL.—Section 210 of the Social Se9 curity Act (42 U.S.C. 410) is amended by adding at

10 the end the following new subsection:

11 ‘‘SERVICE IN THE EMPLOY OF INTERNATIONAL ORGANIZA12 TIONS BY CERTAIN TRANSFERRED FEDERAL EMPLOY13 EES

14 ‘‘(r)(1) For purposes of this title, service performed in

15 the employ of an international organization by an individ16 ual pursuant to a transfer of such individual to such inter17 national organization pursuant to section 3582 of title 5,

18 United States Code, shall constitute ‘employment’ if—

19 ‘‘(A) immediately before such transfer, such indi20 vidual performed service with a Federal agency which

21 constituted ‘employment’ as defined in subsection (a),

22 and

23 ‘‘(B) such individual would be entitled, upon

24 separation from such international organization and

25 proper application, to reemployment with such Fed26 eral agency under such section 3582.
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1 ‘‘(2) For purposes of this subsection:

2 ‘‘(A) The term ‘Federal agency’ means an agen3 cy, as defined in section 3581(1) of title 5, United

4 States Code.

5 ‘‘(B) The term ‘international organization’ has

6 the meaning provided such term by section 3581(3) of

7 title 5, United States Code.’’

8 (2) EXCLUSION FROM TREATMENT AS TRADE OR

9 BUSINESS.—Section 211(c)(2)(C) of such Act (42

10 U.S.C. 411(c)(2)(C)) is amended by inserting before

11 the semicolon the following ‘‘, except service which

12 constitutes ‘employment’ under section 210(r)’’.

13 (3) CONFORMING AMENDMENT.—Section

14 210(a)(15) of such Act (42 U.S.C. 410(a)(15)) is

15 amended by inserting ‘‘, except service which con16 stitutes ‘employment’ under subsection (r)’’ before the

17 semicolon.

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

19 section shall apply with respect to service performed after

20 the calendar quarter following the calendar quarter in

21 which the date of the enactment of this Act occurs.
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1 SEC. 221. EXTEND THE FICA TAX EXEMPTION AND CERTAIN

2 TAX RULES TO INDIVIDUALS WHO ENTER THE

3 UNITED STATES UNDER A VISA ISSUED

4 UNDER SECTION 101 OF THE IMMIGRATION

5 AND NATIONALITY ACT.

6 (a) AMENDMENTS TO THE INTERNAL REVENUE CODE

7 OF 1986.—

8 (1) The following provisions of the Internal Rev9 enue Code of 1986 are each amended by striking ‘‘(J),

10 or (M)’’ each place it appears and inserting ‘‘(J),

11 (M), or (Q)’’:

12 (A) Section 871(c).

13 (B) Section 1441(b).

14 (C) Section 3121(b)(19).

15 (D) Section 3231(e)(1).

16 (E) Section 3306(c)(19).

17 (2) Paragraph (3) of section 872(b) of such Code

18 is amended by striking ‘‘(F) or (J)’’ and inserting

19 ‘‘(F), (J), or (Q)’’.

20 (3) Paragraph (5) of section 7701(b) of such

21 Code is amended by striking ‘‘subparagraph (J)’’ in

22 subparagraphs (C)(i) and (D)(i)(II) and inserting

23 ‘‘subparagraph (J) or (Q)’’.

24 (b) AMENDMENT TO SOCIAL SECURITY ACT.—Para25 graph (19) of section 210(a) of the Social Security Act is
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1 amended by striking ‘‘(J), or (M)’’ each place it appears

2 and inserting ‘‘(J), (M), or (Q)’’.

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

4 subsection shall take effect with the calendar quarter follow5 ing the date of the enactment of this Act.

6 SEC. 222. STUDY OF RISING COSTS OF DISABILITY INSUR7 ANCE BENEFITS.

8 (a) IN GENERAL.—As soon as practicable after the

9 date of the enactment of this Act, the Secretary of Health

10 and Human Services shall conduct a comprehensive study

11 of the reasons for rising costs payable from the Federal Dis12 ability Insurance Trust Fund.

13 (b) MATTERS TO BE INCLUDED IN STUDY.—In con14 ducting the study under this section, the Secretary shall—

15 (1) determine the relative importance of the fol16 lowing factors in increasing the costs payable from

17 the Trust Fund:

18 (A) increased numbers of applications for

19 benefits;

20 (B) higher rates of benefit allowances; and

21 (C) decreased rates of benefit terminations;

22 and

23 (2) identify, to the extent possible, underlying so24 cial, economic, demographic, programmatic, and
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1 other trends responsible for changes in disability bene2 fit applications, allowances, and terminations.

3 (c) REPORT.—Not later than December 31, 1994, the

4 Secretary shall transmit a report to the Committee on Ways

5 and Means of the House of Representatives and the Commit6 tee on Finance of the Senate setting forth the results of the

7 study conducted under this section, together with any rec8 ommendations for legislative changes which the Secretary

9 determines appropriate.

10 SEC. 223. COMMISSION ON CHILDHOOD DISABILITY.

11 (a) ESTABLISHMENT OF COMMISSION.—The Secretary

12 of Health and Human Services (in this section referred to

13 as the ‘‘Secretary’’) shall appoint a Commission on the

14 Evaluation of Disability in Children (in this section re15 ferred to as the ‘‘Commission’’).

16 (b) APPOINTMENT OF MEMBERS.—(1) The Secretary

17 shall appoint not less than 9 but not more than 15 members

18 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 insur11 ance), 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 term

22 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 service
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1 in an appointive or elective position in the Federal Govern2 ment for the purposes of title 5, United States Code.

3 (2) Each member of the Commission who is not a full4 time Federal employee shall be paid compensation at a rate

5 equal to the daily equivalent of the rate of basic pay in

6 effect for Level IV of the Executive Schedule for each day

7 (including travel time) the member attends meetings or oth8 erwise performs the duties of the Commission.

9 (3) While away from their homes or regular places of

10 business on the business of the Commission, each member

11 who is not a full-time Federal employee may be allowed

12 travel expenses, including per diem in lieu of subsistence,

13 as authorized by section 5703 of title 5, United States Code,

14 for persons employed intermittently in the Government

15 service.

16 (d) ASSISTANCE TO COMMISSION.—The Commission

17 may engage individuals skilled in medical and other aspects

18 of childhood disability to provide such technical assistance

19 as may be necessary to carry out the functions of the Com20 mission. The Secretary shall make available to the Commis21 sion such secretarial, clerical, and other assistance as the

22 Commission may require to carry out the functions of the

23 Commission.

24 (e) STUDY BY THE COMMISSION.—(1) The Commission

25 shall conduct a study, in consultation with the National
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1 Academy of Sciences, of the effects of the definition of ‘‘dis2 ability’’ under title XVI of the Social Security Act (42

3 U.S.C. 1382 et seq.) in effect on the date of enactment of

4 this Act, as such definition applies to determining whether

5 a child under the age of 18 is eligible to receive benefits

6 under such title, the appropriateness of such definition, and

7 the advantages and disadvantages of using any alternative

8 definition of disability in determining whether a child

9 under age 18 is eligible to receive benefits under such title.

10 (2) The study described in paragraph (1) shall include

11 issues of—

12 (A) whether the need by families for assistance

13 in meeting high costs of medical care for children

14 with serious physical or mental impairments, whether

15 or not they are eligible for disability benefits under

16 title XVI of the Social Security Act, might appro17 priately be met through expansion of Federal health

18 assistance programs (including the program of medi19 cal assistance under title XIX of such Act);

20 (B) the feasibility of providing benefits to chil21 dren through noncash means, including but not lim22 ited to vouchers, debit cards, and electronic benefit

23 transfer systems;

24 (C) the extent to which the Social Security Ad25 ministration can involve private organizations in an
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1 effort to increae the provision of social services, edu2 cation, and vocational instruction with the aim of

3 promoting independence and the ability to engage in

4 substantial gainful activity;

5 (D) the feasibility of providing retroactive sup6 plemental security income benefits pursuant to the de7 cision in Sullivan v. Zebley, 110 S. Ct. 2658 (1990),

8 on a prorated basis or by means of a packaged trust;

9 (E) methods to increase the extent to which bene10 fits are used in the effort to assist the child achieve

11 independence and engage in substantial gainful activ12 ity; and

13 (F) such other issues that the Secretary deter14 mines to be appropriate.

15 (f) REPORT.—Not later than November 30, 1995, the

16 Commission shall prepare a report and submit such report

17 to the Committee on Ways and Means of the House of Rep18 resentatives and the Committee on Finance of the Senate

19 which shall summarize the results of the study described in

20 subsection (e) and include any recommendations that the

21 Commission determines to be appropriate.
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1 SEC. 224. DISREGARD DEEMED INCOME AND RESOURCES

2 OF INELIGIBLE SPOUSE IN DETERMINING

3 CONTINUED ELIGIBILITY UNDER SECTION

4 1619(b).

5 (a) IN GENERAL.—Section 1619(b)(2) of the Social Se6 curity Act (42 U.S.C. 1382h(b)(2)) is amended by adding

7 at the end the following:

8 ‘‘(C)(i)(I) For purposes of paragraph (1), in determin9 ing the earnings of an individual whose spouse is not an

10 eligible individual, there shall be disregarded the net income

11 of the spouse to the extent such net income does not exceed

12 an amount equal to twice the threshold amount determined

13 for the individual.

14 ‘‘(II) As used in subclause (I), the term ‘threshold

15 amount’ means, with respect to an individual—

16 ‘‘(aa) $85, plus twice the amount of benefits pay17 able under this title (including federally administered

18 State supplementary payments) to an individual who

19 is living in his or her own household and who has no

20 other income, plus the average amount expended per

21 individual, under the State plan approved under title

22 XIX by the State in which the individual resides, on

23 individuals who are recipients of benefits under this

24 title by reason of disability; or

25 ‘‘(bb) if the gross earnings of the individual ex26 ceeds the amount described in item (aa), the amount
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1 that would be sufficient to allow the individual to

2 provide for himself or herself a reasonable equivalent

3 of benefits and services described in paragraph

4 (1)(D).

5 ‘‘(ii) For purposes of paragraph (1)(A), in determin6 ing the resources of an individual whose spouse is not an

7 eligible individual, there shall be disregarded the resources

8 of the spouse to the extent the amount of such resources does

9 not exceed the community spouse resource allowance (as de10 fined in section 1924(f)(2)) of the State in which the indi11 vidual resides.’’.

12 (b) EFFECTIVE DATE.—The amendment made by sub13 section (a) shall take effect on October 1, 1995.

14 SEC. 225. PLANS FOR ACHIEVING SELF-SUPPORT NOT DIS15 APPROVED WITHIN 60 DAYS TO BE DEEMED

16 APPROVED.

17 (a) AMENDMENTS TO INCOME EXCLUSION RULES.—

18 Section 1612(b)(4) of the Social Security Act (42 U.S.C.

19 1382a(b)(4)(A)) is amended in each of subparagraphs (A)

20 and (B) by inserting ‘‘and, for purposes of this clause, a

21 completed plan for achieving self-support which is not dis22 approved by the Board within 60 days after the date of

23 submission shall be deemed to be approved by the Board

24 until subsequently disapproved by the Board (with appro25 priate notification to the individual),’’ after ‘‘plan,’’.
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1 (b) AMENDMENT TO RESOURCE EXCLUSION RULE.—

2 Section 1613(a)(4) of such Act (42 U.S.C. 1382b(a)(4)) is

3 amended by inserting ‘‘, and, for purposes of this para4 graph, a completed plan for achieving self-support which

5 is not disapproved by the Board within 60 days after the

6 date of submission shall be deemed to be approved by the

7 Board until 6 months after subsequently disapproved by the

8 Board (with appropriate notification to the individual)’’

9 after ‘‘such plan’’.

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

11 section shall take effect on January 1, 1995.

12 SEC. 226. TEMPORARY AUTHORITY TO APPROVE A LIMITED

13 NUMBER OF PLANS FOR ACHIEVING SELF14 SUPPORT THAT INCLUDE HOUSING GOALS.

15 (a) IN GENERAL.—During the 42-month period that

16 begins on January 1, 1995, the Board may, under title XVI

17 of the Social Security Act, approve not more than 20 per18 cent of the plans for achieving self-support that include a

19 housing goal.

20 (b) REPORT.—Within 12 months after the end of the

21 5-year period that begins on January 1, 1995, the Board

22 shall submit to the Congress a report on the activities under

23 subsection (a).
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1 SEC. 227. REGULATIONS REGARDING COMPLETION OF

2 PLANS FOR ACHIEVING SELF-SUPPORT.

3 (a) IN GENERAL.—Section 1633 of the Social Security

4 Act (42 U.S.C. 1383b) is amended by adding at the end

5 the following:

6 ‘‘(d) The Board shall establish by regulation time lim7 its and other criteria related to individuals’ plans for

8 achieving self-support, that take into account the difficulty

9 of achieving self-support based on the needs of individuals

10 and the goals of the plan.’’.

11 (b) EFFECTIVE DATE.—The amendment made by sub12 section (a) shall take effect on January 1, 1995.

13 SEC. 228. TREATMENT OF CERTAIN GRANT, SCHOLARSHIP,

14 OR FELLOWSHIP INCOME AS EARNED INCOME

15 FOR SSI PURPOSES.

16 (a) IN GENERAL.—Section 1612(a)(1) of the Social Se17 curity Act (42 U.S.C. 1382a(a)(1)) is amended—

18 (1) by striking ‘‘and’’ at the end of subpara19 graph (D); and

20 (2) by adding at the end the following:

21 ‘‘(F) any grant, scholarship, or fellowship.’’.

22 (b) EFFECTIVE DATE.—The amendments made by sub23 section (a) shall apply to eligibility and benefit determina24 tions for any month that begins after the 2nd month after

25 the month in which this Act is enacted.
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1 SEC. 229. SSI ELIGIBILITY FOR STUDENTS TEMPORARILY

2 ABROAD.

3 (a) IN GENERAL.—Section 1611(f) of the Social Secu4 rity Act (42 U.S.C. 1382(f)) is amended—

5 (1) by inserting ‘‘(1)’’ after ‘‘(f)’’; and

6 (2) by adding after and below the end the follow7 ing:

8 ‘‘(2) The first sentence of paragraph (1) shall not

9 apply to any individual who—

10 ‘‘(A) was eligible to receive a benefit under this

11 title for the month immediately preceding the first

12 month during all of which the individual was outside

13 the United States; and

14 ‘‘(B) demonstrates to the satisfaction of the

15 Board that the absence of the individual from the

16 United States is—

17 ‘‘(i) temporary; and

18 ‘‘(ii) for the purpose of conducting studies

19 as part of an educational program that is de20 signed to prepare the individual for gainful em21 ployment, and is sponsored by a school, college,

22 or university in the United States.’’.

23 (b) EFFECTIVE DATE.—The amendment made by sub24 section (a) shall take effect on January 1, 1995.
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1 SEC. 230. DISREGARD OF COST-OF-LIVING INCREASES FOR

2 CONTINUED ELIGIBILITY FOR WORK INCEN3 TIVES.

4 (a) IN GENERAL.—Section 1619(b)(1)(B) of the Social

5 Security Act (42 U.S.C. 1382h(b)(1)(B)) is amended by in6 serting ‘‘and increases pursuant to section 215(i) in the

7 level of monthly insurance benefits to which the individual

8 is entitled under title II that occur while such individual

9 is considered to be receiving supplemental security income

10 benefits by reason of this subsection’’ after ‘‘earnings’’.

11 (b) EFFECTIVE DATE.—The amendment made by sub12 section (a) shall apply to eligibility determinations for

13 months after December 1994.

14 SEC. 231. EXPANSION OF THE AUTHORITY OF THE SOCIAL

15 SECURITY ADMINISTRATION TO PREVENT,

16 DETECT, AND TERMINATE FRAUDULENT

17 CLAIMS FOR SSI BENEFITS.

18 (a) PREVENTION OF FRAUD IN THE SSI PROGRAM BY

19 TRANSLATORS OF FOREIGN LANGUAGES.—

20 (1) IN GENERAL.—Section 1631(e) of the Social

21 Security Act (42 U.S.C. 1383(e)) is amended by in22 serting after paragraph (3) the following:

23 ‘‘(4) A translation into English by a third party of

24 a statement made in a foreign language by an applicant

25 for or recipient of benefits under this title shall not be re-
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1 garded as reliable unless the third party, under penalty of

2 perjury—

3 ‘‘(A) certifies that the translation is accurate;

4 and

5 ‘‘(B) discloses the nature and scope of the rela6 tionship between the third party and the applicant or

7 recipient, as the case may be.’’.

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

9 paragraph (1) shall take effect on October 1, 1994.

10 (b) CIVIL MONETARY PENALTIES, ASSESSMENTS, AND

11 EXCLUSIONS FOR TITLE XVI.—

12 (1) IN GENERAL.—Title XI of the Social Secu13 rity Act (42 U.S.C. 1301–1320b–14) is amended by

14 inserting after section 1128B the following:

15 ‘‘SEC. 1129. CIVIL MONETARY PENALTIES AND ASSESS16 MENTS FOR TITLE XVI.

17 ‘‘(a) Any person (including an organization, agency,

18 or other entity) who makes, or causes to be made, a state19 ment or representation of a material fact for use in deter20 mining any initial or continuing right to benefits or pay21 ments under title XVI that the person knows or should know

22 is false or misleading or knows or should know omits a ma23 terial fact shall be subject to, in addition to any other pen24 alties that may be prescribed by law, a civil money penalty

25 of not more than $5,000 for each such statement or represen-
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1 tation. Such person also shall be subject to an assessment,

2 in lieu of damages sustained by the United States because

3 of such statement or representation, of not more than twice

4 the amount of benefits or payments paid as a result of such

5 a statement or representation. In addition, the Board may

6 make a determination in the same proceeding to exclude

7 the person from participation in the programs under title

8 XVIII and to direct the appropriate State agency to exclude

9 the person from participation in any State health care pro10 gram.

11 ‘‘(b)(1) The Board may initiate a proceeding to deter12 mine whether to impose a civil money penalty, assessment,

13 or exclusion under subsection (a) only as authorized by the

14 Attorney General pursuant to procedures agreed upon by

15 the Board and the Attorney General. The Board may not

16 initiate an action under this section with respect to any

17 violation described in subsection (a) later than 6 years after

18 the date the violation was committed. The Board may initi19 ate an action under this section by serving notice of the

20 action in any manner authorized by Rule 4 of the Federal

21 Rules of Civil Procedure.

22 ‘‘(2) The Board shall not make a determination ad23 verse to any person under this section until the person has

24 been given written notice and an opportunity for the deter25 mination to be made on the record after a hearing at which
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1 the person is entitled to be represented by counsel, to present

2 witnesses, and to cross-examine witnesses against the

3 person.

4 ‘‘(3) In a proceeding under this section which—

5 ‘‘(A) is against a person who has been convicted

6 (whether upon a verdict after trial or upon a plea of

7 guilty or nolo contendere) of a Federal crime charging

8 fraud or false statements; and

9 ‘‘(B) involves the same transaction as in the

10 criminal action;

11 the person is estopped from denying the essential elements

12 of the criminal offense.

13 ‘‘(4) The official conducting a hearing under this sec14 tion may sanction a person, including any party or attor15 ney, for failing to comply with an order or procedure, fail16 ing to defend an action, or other misconduct as would inter17 fere with the speedy, orderly, or fair conduct of the hearing.

18 Such sanction shall reasonably relate to the severity and

19 nature of the failure or misconduct. Such sanction may in20 clude—

21 ‘‘(A) in the case of refusal to provide or permit

22 discovery, drawing negative factual inference or treat23 ing such refusal as an admission by deeming the mat24 ter, or certain facts, to be established;
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1 ‘‘(B) prohibiting a party from introducing cer2 tain evidence or otherwise supporting a particular

3 claim or defense;

4 ‘‘(C) striking pleadings, in whole or in part;

5 ‘‘(D) staying the proceedings;

6 ‘‘(E) dismissal of the action;

7 ‘‘(F) entering a default judgment;

8 ‘‘(G) ordering the party or attorney to pay attor9 neys’ fees and other costs caused by the failure or mis10 conduct; and

11 ‘‘(H) refusing to consider any motion or other

12 action which is not filed in a timely manner.

13 ‘‘(c) In determining the amount or scope of any pen14 alty, assessment, or exclusion imposed pursuant to this sec15 tion, the Board shall take into account—

16 ‘‘(1) the nature of the statements and representa17 tions referred to in subsection (a) and the cir18 cumstances under which they occurred;

19 ‘‘(2) the degree of culpability, history of prior of20 fenses, and financial condition of the person commit21 ting the offense; and

22 ‘‘(3) such other matters as justice may require.

23 ‘‘(d)(1) Any person adversely affected by a determina24 tion of the Board under this section may obtain a review

25 of such determination in the United States Court of Appeals
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1 for the circuit in which the person resides, or in which the

2 statement or representation referred to in subsection (a) was

3 made, by filing in such court (within 60 days following

4 the date the person is notified of the Board’s determination)

5 a written petition requesting that the determination be

6 modified or set aside. A copy of the petition shall be forth7 with transmitted by the clerk of the court to the Board, and

8 thereupon the Board shall file in the court the record in

9 the proceeding as provided in section 2112 of title 28, Unit10 ed States Code. Upon such filing, the court shall have juris11 diction of the proceeding and of the question determined

12 therein, and shall have the power to make and enter upon

13 the pleadings, testimony, and proceedings set forth in such

14 record a decree affirming, modifying, remanding for further

15 consideration, or setting aside, in whole or in part, the de16 termination of the Board and enforcing the same to the ex17 tent that such order is affirmed or modified. No objection

18 that has not been urged before the Board shall be considered

19 by the court, unless the failure or neglect to urge such objec20 tion shall be excused because of extraordinary cir21 cumstances.

22 ‘‘(2) The findings of the Board with respect to ques23 tions of fact, if supported by substantial evidence on the

24 record considered as a whole, shall be conclusive in the re25 view described in paragraph (1). If any party shall apply
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1 to the court for leave to adduce additional evidence and

2 shall show to the satisfaction of the court that such addi3 tional evidence is material and that there were reasonable

4 grounds for the failure to adduce such evidence in the hear5 ing before the Board, the court may order such additional

6 evidence to be taken before the Board and to be made a

7 part of the record. The Board may modify its findings as

8 to the facts, or make new findings, by reason of additional

9 evidence so taken and filed, and the Board shall file with

10 the court such modified or new findings, which findings

11 with respect to questions of fact, if supported by substantial

12 evidence on the record considered as a whole shall be conclu13 sive, and his recommendations, if any, for the modification

14 or setting aside of his original order.

15 ‘‘(3) Upon the filing of the record with the Board’s

16 original or modified order, the jurisdiction of the court shall

17 be exclusive and its judgment and decree shall be final, ex18 cept that the same shall be subject to review by the Supreme

19 Court of the United States, as provided in section 1254 of

20 title 28, United States Code.

21 ‘‘(e)(1) Civil money penalties and assessments imposed

22 under this section may be compromised by the Board and

23 may be recovered—

24 ‘‘(A) in a civil action in the name of the United

25 States brought in United States district court for the
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1 district where the statement or representation referred

2 to in subsection (a) was made, or where the person

3 resides, as determined by the Board;

4 ‘‘(B) by means of reduction in tax refunds to

5 which the person is entitled, based on notice to the

6 Secretary of the Treasury as permitted under section

7 3720A of title 31, United States Code;

8 ‘‘(C) by decrease of any payment under title XVI

9 to which the person is entitled, notwithstanding sec10 tion 207 of this Act, as made applicable to this title

11 by reason of section 1631(d)(1);

12 ‘‘(D) by authorities provided under the Debt Col13 lection Act of 1982, as amended, to the extent appli14 cable to debts arising under the Social Security Act;

15 ‘‘(E) by deduction of the amount of such penalty

16 or assessment, when finally determined, or the

17 amount agreed upon in compromise, from any sum

18 then or later owing by the United States to the person

19 against whom the penalty or assessment has been as20 sessed; or

21 ‘‘(F) by any combination of the foregoing.

22 ‘‘(f) A determination by the Board to impose a pen23 alty, assessment, or exclusion under this section shall be

24 final upon the expiration of the 60-day period referred to

25 in subsection (d). Matters that were raised or that could
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1 have been raised in a hearing before the Board or in an

2 appeal pursuant to subsection (d) may not be raised as a

3 defense to a civil action by the United States to collect a

4 penalty and assessment imposed under this section.

5 ‘‘(g) Whenever the Board’s determination to impose a

6 penalty, assessment, or exclusion under this section with re7 spect to a medical provider or physician becomes final, the

8 provisions of section 1128A(h) shall apply.

9 ‘‘(h) Whenever the Board has reason to believe that any

10 person has engaged, is engaging, or is about to engage in

11 any activity which makes the person subject to a civil mone12 tary penalty under this section, the Board may bring an

13 action in an appropriate district court of the United States

14 (or, if applicable, a United States court of any territory)

15 to enjoin such activity, or to enjoin the person from conceal16 ing, removing, encumbering, or disposing of assets which

17 may be required in order to pay a civil monetary penalty

18 and assessment if any such penalty were to be imposed or

19 to seek other appropriate relief.

20 ‘‘(i)(1) The provisions of subsections (d) and (e) of sec21 tion 205 shall apply with respect to this section to the same

22 extent as they are applicable with respect to title II. The

23 Board may delegate the authority granted by section 205(d)

24 (as made applicable to this section) to the Inspector General
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1 of the Department of Health and Human Services for pur2 poses of any investigation under this section.

3 ‘‘(2) The Board may delegate authority granted under

4 this section to the Inspector General of the Social Security

5 Administration.

6 ‘‘(j) For purposes of this section, the term ‘State agen7 cy’ shall have the same meaning as in section 1128A(i)(1).

8 ‘‘(k) A principal is liable for penalties, assessments,

9 and exclusions under this section for the actions of the prin10 cipal’s agent acting within the scope of the agency.’’.

11 (2) CONFORMING AMENDMENTS.—Section 1128

12 of such Act (42 U.S.C. 1320a–7) is amended—

13 (A) in subsection (b)(7), by striking ‘‘or sec14 tion 1128B’’ and inserting ‘‘, section 1128B, or

15 section 1129’’;

16 (B) in subsection (b)(8)(B)(ii), by inserting

17 ‘‘and section 1129’’ after ‘‘section 1128A’’;

18 (C) in subsection (c)(1), by striking ‘‘or

19 under section 1128A’’ and inserting ‘‘, section

20 1128A, or section 1129’’;

21 (D) in subsection (c)(3)(A), by inserting ‘‘or

22 section 1129’’ after ‘‘section 1128A’’;

23 (E) in subsection (d)(1), by striking ‘‘and

24 section 1128A’’ and inserting ‘‘, section 1128A,

25 and section 1129’’;
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1 (F) in subsection (d)(2)(A), by striking ‘‘or

2 section 1128A’’ and inserting ‘‘, section 1128A,

3 or section 1129’’;

4 (G) in subsection (e)(1), by striking ‘‘or sec5 tion 1128A’’ and inserting ‘‘, section 1128A, or

6 section 1129’’;

7 (H) in subsection (f)(3), by inserting ‘‘,

8 1129,’’ after ‘‘sections 1128A’’;

9 (I) in subsection (g)(1), by striking ‘‘or sec10 tion 1128A’’ each place such term appears and

11 inserting ‘‘, section 1128A, or section 1129’’;

12 (J) in subsection (g)(2)(A), by inserting

13 ‘‘and section 1129(a)’’ after ‘‘section 1128A(a)’’;

14 and

15 (K) in subsection (h), by striking ‘‘1128A

16 and 1128B’’ and inserting ‘‘1128A, 1128B, and

17 1129’’.

18 (c) SSI FRAUD CONSIDERED A FELONY.—

19 (1) IN GENERAL.—Section 1632(a) of the Social

20 Security Act (42 U.S.C. 1383a(a)) is amended by

21 striking ‘‘shall’’ the 1st place such term appears and

22 all that follows and inserting ‘‘shall be fined under

23 title 18, United States Code, imprisoned not more

24 than 5 years, or both.’’.
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1 (2) CONFORMING AMENDMENT.—Section 1632(b)

2 of such Act (42 U.S.C. 1383a(b)) is amended to read

3 as follows:

4 ‘‘(b)(1) If a person or entity violates subsection (a) in

5 the person’s or entity’s role as, or in applying to become,

6 a payee under section 1631(a)(2) on behalf of another indi7 vidual (other than the person’s eligible spouse), and the vio8 lation includes a willful misuse of funds by the person or

9 entity, the court may also require that full or partial res10 titution of funds be made to such other individual.

11 ‘‘(2) Any person or entity convicted of a violation of

12 subsection (a) of this section or of section 208 may not be

13 certified as a payee under section 1631(a)(2).’’.

14 (d) AUTHORITY TO REDETERMINE ELIGIBILITY IN

15 DISABILITY CASES IF FRAUD IS INVOLVED, AND TO TERMI16 NATE BENEFITS IF THERE IS INSUFFICIENT RELIABLE

17 EVIDENCE OF DISABILITY.—

18 (1) IN GENERAL.—Section 1631(e) of the Social

19 Security Act (42 U.S.C. 1383(e)) is amended by add20 ing at the end the following:

21 ‘‘(6)(A) The Board shall immediately redetermine the

22 eligibility of an individual for benefits under this title by

23 reason of disability, disregarding any unreliable evidence

24 of disability, if there is reason to believe that fraud was

25 involved in the application of the individual for such bene-
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1 fits, unless a United States attorney, or equivalent State

2 prosecutor, with jurisdiction over potential or actual related

3 criminal cases, certifies, in writing, that there is a substan4 tial risk that redetermining such eligibility would jeopard5 ize the criminal prosecution of any person who is a subject

6 of the investigation from which the information is derived.

7 ‘‘(B) If, after redetermining the eligibility of an indi8 vidual for benefits under this title by reason of disability,

9 the Board determines that there is insufficient reliable evi10 dence of disability, the Board may terminate such eligi11 bility.’’.

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

13 paragraph (1) shall take effect on October 1, 1994,

14 and shall apply to eligibility determinations made be15 fore, on, or after such date.

16 (e) AVAILABILITY OF RECIPIENT IDENTIFYING INFOR17 MATION FROM THE INSPECTOR GENERAL, SOCIAL SECU18 RITY ADMINISTRATION.—

19 (1) IN GENERAL.—Section 1631(e) of the Social

20 Security Act (42 U.S.C. 1383(e)), as amended by sub21 section (d) of this section, is amended by adding at

22 the end the following:

23 ‘‘(7) As soon as the Inspector General, Social Security

24 Administration, has reason to believe that fraud was in25 volved in the application of a recipient for benefits under
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1 this title, the Inspector General shall make available to the

2 Board information identifying the recipient, unless a Unit3 ed States attorney, or equivalent State prosecutor, with ju4 risdiction over potential or actual related criminal cases,

5 certifies, in writing, that there is a substantial risk that

6 making the information so available or redetermining the

7 eligibility of the recipient for such benefits would jeopardize

8 the criminal prosecution of any person who is a subject of

9 the investigation from which the information is derived.’’.

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

11 paragraph (1) shall take effect on October 1, 1994.

12 (f) AUTHORITY TO USE AVAILABLE PREADMISSION IM13 MIGRANT AND REFUGEE MEDICAL INFORMATION.—

14 (1) IN GENERAL.—Section 1631(e) of the Social

15 Security Act (42 U.S.C. 1383(e)), as amended by the

16 preceding provisions of this Act, is amended by add17 ing at the end the following:

18 ‘‘(8) The Board shall request the Immigration and

19 Naturalization Service and the Centers for Disease Control

20 to provide the Board with whatever medical information

21 either such entity has with respect to any alien who has

22 applied for benefits under this title to the extent that the

23 information is relevant to any determination relating to

24 such eligibility.’’.
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1 (2) EFFECTIVE DATE.—The amendment made by

2 paragraph (1) shall take effect on October 1, 1994.

3 (g) ANNUAL REPORTS ON REVIEWS OF SSI CASES.—

4 The Board shall annually submit to the Committee on Ways

5 and Means of the House of Representatives and the Commit6 tee on Finance of the Senate a report on the exent to which

7 the Board has exercised its authority to review supple8 mental security income cases under title XVI of the Social

9 Security Act, and the extent to which the cases reviewed

10 were those that involved a high likelihood or probability of

11 fraud.

12 SEC. 232. DISABILITY REVIEW REQUIRED FOR SSI RECIPI13 ENTS WHO ARE 18 YEARS OF AGE.

14 (a) IN GENERAL.—Section 1614(a)(3)(G) of the Social

15 Security Act (42 U.S.C. 1382c(a)(3)(G)) is amended—

16 (1) by inserting ‘‘(i)’’ after ‘‘(G)’’; and

17 (2) by adding after and below the end the follow18 ing:

19 ‘‘(ii)(I) During the 1-year period that begins on the

20 date a recipient of benefits under this title by reason of dis21 ability attains 18 years of age, the applicable State agency

22 or the Board (as may be appropriate) shall redetermine the

23 eligibility of the recipient for such benefits by reason of dis24 ability, by applying the criteria used in determining eligi-
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1 bility for such benefits of applicants who have attained 18

2 years of age.

3 ‘‘(II) A review under subclause (I) of this clause shall

4 be considered a substitute for a review required under clause

5 (i).’’.

6 (b) EFFECTIVE DATE.—The amendments made by sub7 section (a) shall apply to individuals who attain 18 years

8 of age in or after the 9th month after the month in which

9 this Act is enacted.

10 SEC. 233. CONTINUING DISABILITY REVIEWS.

11 (a) IN GENERAL.—Section 1614(a)(3)(G) of such Act

12 (42 U.S.C. 1382c(a)(3)(G)) is amended by inserting

13 ‘‘221(i),’’ after ‘‘221(h),’’.

14 (b) EFFECTIVE DATE.—The amendment made by sub15 section (A) shall take effect on October 1, 1995.

16 SEC. 234. TECHNICAL AND CLERICAL AMENDMENTS.

17 (a) AMENDMENTS TO TITLE II OF THE SOCIAL SECU18 RITY ACT.—

19 (1) Section 201(a) of the Social Security Act (42

20 U.S.C. 401(a)) is amended, in the matter following

21 clause (4), by striking ‘‘and and’’ and inserting

22 ‘‘and’’.

23 (2) Section 202(d)(8)(D)(ii) of such Act (42

24 U.S.C. 402(d)(8)(D)(ii)) is amended by adding a pe25 riod at the end and by adjusting the left hand
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1 margination thereof so as to align with section

2 202(d)(8)(D)(i) of such Act.

3 (3) Section 202(q)(1)(A) of such Act (42 U.S.C.

4 402(q)(1)(A)) is amended by striking the dash at the

5 end.

6 (4) Section 202(q)(9) of such Act (42 U.S.C.

7 402(q)(9)) is amended, in the matter preceding sub8 paragraph (A), by striking ‘‘parargaph’’ and insert9 ing ‘‘paragraph’’.

10 (5) Section 202(t)(4)(D) of such Act (42 U.S.C.

11 402(t)(4)(D)) is amended by inserting ‘‘if the’’ before

12 ‘‘Secretary’’ the second and third places it appears.

13 (6) Clauses (i) and (ii) of section 203(f)(5)(C) of

14 such Act (42 U.S.C. 403(f)(5)(C)) are amended by ad15 justing the left-hand margination thereof so as to

16 align with clauses (i) and (ii) of section 203(f)(5)(B)

17 of such Act.

18 (7) Paragraph (3)(A) and paragraph (3)(B) of

19 section 205(b) of such Act (42 U.S.C. 405(b)) are

20 amended by adjusting the left-hand margination

21 thereof so as to align with the matter following section

22 205(b)(2)(C) of such Act.

23 (8) Section 205(c)(2)(B)(iii) of such Act (42

24 U.S.C. 405(c)(2)(B)(iii)) is amended by striking

25 ‘‘non-public’’ and inserting ‘‘nonpublic’’.
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1 (9) Section 205(c)(2)(C) of such Act (42 U.S.C.

2 405(c)(2)(C)) is amended—

3 (A) by striking the clause (vii) added by

4 section 2201(c) of Public Law 101–624;

5 (B) by redesignating the clause (iii) added

6 by section 2201(b)(3) of Public Law 101–624,

7 clause (iv), clause (v), clause (vi), and the clause

8 (vii) added by section 1735(b) of Public Law

9 101–624 as clause (iv), clause (v), clause (vi),

10 clause (vii), and clause (viii), respectively;

11 (C) in clause (v) (as redesignated), by strik12 ing ‘‘subclause (I) of’’, and by striking

13 ‘‘subclause (II) of clause (i)’’ and inserting

14 ‘‘clause (ii)’’; and

15 (D) in clause (viii)(IV) (as redesignated),

16 by inserting ‘‘a social security account number

17 or’’ before ‘‘a request for’’.

18 (10) The heading for section 205(j) of such Act

19 (42 U.S.C. 405(j)) is amended to read as follows:

20 ‘‘Representative Payees’’.

21 (11) The heading for section 205(s) of such Act

22 (42 U.S.C. 405(s)) is amended to read as follows:
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1 ‘‘Notice Requirements’’.

2 (12) Section 208(c) of such Act (42 U.S.C.

3 408(c)) is amended by striking ‘‘subsection (g)’’ and

4 inserting ‘‘subsection (a)(7)’’.

5 (13) Section 210(a)(5)(B)(i)(V) of such Act (42

6 U.S.C. 410(a)(5)(B)(i)(V)) is amended by striking

7 ‘‘section 105(e)(2)’’ and inserting ‘‘section 104(e)(2)’’.

8 (14) Section 211(a) of such Act (42 U.S.C.

9 411(a)) is amended—

10 (A) in paragraph (13), by striking ‘‘and’’

11 at the end; and

12 (B) in paragraph (14), by striking the pe13 riod and inserting ‘‘; and’’.

14 (15) Section 213(c) of such Act (42 U.S.C.

15 413(c)) is amended by striking ‘‘section’’ the first

16 place it appears and inserting ‘‘sections’’.

17 (16) Section 215(a)(5)(B)(i) of such Act (42

18 U.S.C. 415(a)(5)(B)(i)) is amended by striking ‘‘sub19 section’’ the second place it appears and inserting

20 ‘‘subsections’’.

21 (17) Section 215(f)(7) of such Act (42 U.S.C.

22 415(f)(7)) is amended by inserting a period after

23 ‘‘1990’’.

24 (18) Subparagraph (F) of section 218(c)(6) of

25 such Act (42 U.S.C. 418(c)(6)) is amended by adjust-
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1 ing the left-hand margination thereof so as to align

2 with section 218(c)(6)(E) of such Act.

3 (19) Section 223(i) of such Act (42 U.S.C.

4 423(i)) is amended by adding at the beginning the

5 following heading:

6 ‘‘Limitation on Payments to Prisoners’’.

7 (b) RELATED AMENDMENTS.—

8 (1) Section 603(b)(5)(A) of Public Law 101–649

9 (amending section 202(n)(1) of the Social Security

10 Act) (104 Stat. 5085) is amended by inserting

11 ‘‘under’’ before ‘‘paragraph (1),’’ and by striking

12 ‘‘(17), or (18)’’ and inserting ‘‘(17), (18), or (19)’’, ef13 fective as if this paragraph were included in such sec14 tion 603(b)(5)(A).

15 (2) Section 10208(b)(1) of Public Law 101–239

16 (amending section 230(b)(2)(A) of the Social Security

17 Act) (103 Stat. 2477) is amended by striking

18 ‘‘230(b)(2)(A)’’ and ‘‘430(b)(2)(A)’’ and inserting

19 ‘‘230(b)(2)’’ and ‘‘430(b)(2)’’, respectively, effective as

20 if this paragraph were included in such section

21 10208(b)(1).

22 (c) CONFORMING, CLERICAL AMENDMENTS UPDATING,

23 WITHOUT SUBSTANTIVE CHANGE, REFERENCES IN TITLE

24 II OF THE SOCIAL SECURITY ACT TO THE INTERNAL REVE25 NUE CODE.—
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1 (1)(A)(i) Section 201(g)(1) of such Act (42

2 U.S.C. 401(g)(1)) is amended—

3 (I) in subparagraph (A)(i), by striking

4 ‘‘and subchapter E’’ and all that follows through

5 ‘‘1954’’ and inserting ‘‘and chapters 2 and 21 of

6 the Internal Revenue Code of 1986’’;

7 (II) in subparagraph (A)(ii), by striking

8 ‘‘1954’’ and inserting ‘‘1986’’;

9 (III) in the matter in subparagraph (A) fol10 lowing clause (ii), by striking ‘‘subchapter E’’

11 and all that follows through ‘‘1954.’’ and insert12 ing ‘‘chapters 2 and 21 of the Internal Revenue

13 Code of 1986.’’, and by striking ‘‘1954 other’’

14 and inserting ‘‘1986 other’’; and

15 (IV) in subparagraph (B), by striking

16 ‘‘1954’’ each place it appears and inserting

17 ‘‘1986’’.

18 (ii) The amendments made by clause (i) shall

19 apply only with respect to periods beginning on or

20 after the date of the enactment of this Act.

21 (B)(i) Section 201(g)(2) of such Act (42 U.S.C.

22 401(g)(2)) is amended by striking ‘‘section 3101(a)’’

23 and all that follows through ‘‘1950.’’ and inserting

24 ‘‘section 3101(a) of the Internal Revenue Code of 1986

25 which are subject to refund under section 6413(c) of
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1 such Code with respect to wages (as defined in section

2 3121 of such Code).’’, and by striking ‘‘wages re3 ported’’ and all that follows through ‘‘1954,’’ and in4 serting ‘‘wages reported to the Secretary of the Treas5 ury or his delegate pursuant to subtitle F of such

6 Code,’’.

7 (ii) The amendments made by clause (i) shall

8 apply only with respect to wages paid on or after

9 January 1, 1995.

10 (C) Section 201(g)(4) of such Act (42 U.S.C.

11 401(g)(4)) is amended—

12 (i) by striking ‘‘The Board of Trustees shall

13 prescribe before January 1, 1981, the method’’

14 and inserting ‘‘If at any time or times the

15 Boards of Trustees of such Trust Funds deem

16 such action advisable, they may modify the

17 method prescribed by such Boards’’;

18 (ii) by striking ‘‘1954’’ and inserting

19 ‘‘1986’’; and

20 (iii) by striking the last sentence.

21 (2) Section 202(v) of such Act (42 U.S.C. 402(v))

22 is amended—

23 (A) in paragraph (1), by striking ‘‘1954’’

24 and inserting ‘‘1986’’; and
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1 (B) in paragraph (3)(A), by inserting ‘‘of

2 the Internal Revenue Code of 1986’’ after

3 ‘‘3127’’.

4 (3) Section 205(c)(5)(F)(i) of such Act (42

5 U.S.C. 405(c)(5)(F)(i)) is amended by inserting ‘‘or

6 the Internal Revenue Code of 1986’’ after ‘‘1954’’.

7 (4)(A) Section 209(a)(4)(A) of such Act (42

8 U.S.C. 409(a)(4)(A)) is amended by inserting ‘‘or the

9 Internal Revenue Code of 1986’’ after ‘‘Internal Reve10 nue Code of 1954’’.

11 (B) Section 209(a) of such Act (42 U.S.C.

12 409(a)) is amended—

13 (i) in subparagraphs (C) and (E) of para14 graph (4),

15 (ii) in paragraph (5)(A),

16 (iii) in subparagraphs (A) and (B) of para17 graph (14),

18 (iv) in paragraph (15),

19 (v) in paragraph (16), and

20 (vi) in paragraph (17),

21 by striking ‘‘1954’’ each place it appears and insert22 ing ‘‘1986’’.

23 (C) Subsections (b), (f), (g), (i)(1), and (j) of sec24 tion 209 of such Act (42 U.S.C. 409) are amended by
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1 striking ‘‘1954’’ each place it appears and inserting

2 ‘‘1986’’.

3 (5) Section 211(a)(15) of such Act (42 U.S.C.

4 411(a)(15)) is amended by inserting ‘‘of the Internal

5 Revenue Code of 1986’’ after ‘‘section 162(m)’’.

6 (6) Title II of such Act is further amended—

7 (A) in subsections (f)(5)(B)(ii) and (k) of

8 section 203 (42 U.S.C. 403),

9 (B) in section 205(c)(1)(D)(i) (42 U.S.C.

10 405(c)(1)(D)(i)),

11 (C) in the matter in section 210(a) (42

12 U.S.C. 410(a)) preceding paragraph (1) and in

13 paragraphs (8), (9), and (10) of section 210(a),

14 (D) in subsections (p)(4) and (q) of section

15 210 (42 U.S.C. 410),

16 (E) in the matter in section 211(a) (42

17 U.S.C. 411(a)) preceding paragraph (1) and in

18 paragraphs (3), (4), (6), (10), (11), and (12) and

19 clauses (iii) and (iv) of section 211(a),

20 (F) in the matter in section 211(c) (42

21 U.S.C. 411(c)) preceding paragraph (1), in

22 paragraphs (3) and (6) of section 211(c), and in

23 the matter following paragraph (6) of section

24 211(c),
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1 (G) in subsections (d), (e), and (h)(1)(B) of

2 section 211 (42 U.S.C. 411),

3 (H) in section 216(j) (42 U.S.C. 416(j)),

4 (I) in section 218(e)(3) (42 U.S.C.

5 418(e)(3)),

6 (J) in section 229(b) (42 U.S.C. 429(b)),

7 (K) in section 230(c) (42 U.S.C. 430(c)),

8 and

9 (L) in section 232 (42 U.S.C. 432),

10 by striking ‘‘1954’’ each place it appears and insert11 ing ‘‘1986’’.

12 (d) RULES OF CONSTRUCTION.—

13 (1) The preceding provisions of this section shall

14 be construed only as technical and clerical corrections

15 and as reflecting the original intent of the provisions

16 amended thereby.

17 (2) Any reference in title II of the Social Secu18 rity Act to the Internal Revenue Code of 1986 shall

19 be construed to include a reference to the Internal

20 Revenue Code of 1954 to the extent necessary to carry

21 out the provisions of paragraph (1).

22 (e) UTILIZATION OF NATIONAL AVERAGE WAGE INDEX

23 FOR WAGE-BASED ADJUSTMENTS.—
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1 (1) DEFINITION OF NATIONAL AVERAGE WAGE

2 INDEX.—Section 209(k) of the Social Security Act (42

3 U.S.C. 409(k)) is amended—

4 (A) by redesignating paragraph (2) as

5 paragraph (3);

6 (B) in paragraph (3) (as redesignated), by

7 striking ‘‘paragraph (1)’’ and inserting ‘‘this

8 subsection’’; and

9 (C) by striking paragraph (1) and inserting

10 the following new paragraphs:

11 ‘‘(k)(1) For purposes of sections 203(f)(8)(B)(ii),

12 213(d)(2)(B), 215(a)(1)(B)(ii), 215(a)(1)(C)(ii),

13 215(a)(1)(D), 215(b)(3)(A)(ii), 215(i)(1)(E),

14 215(i)(2)(C)(ii), 224(f)(2)(B), and 230(b)(2) (and 230(b)(2)

15 as in effect immediately prior to the enactment of the Social

16 Security Amendments of 1977), the term ‘national average

17 wage index’ for any particular calendar year means, subject

18 to regulations of the Secretary under paragraph (2), the av19 erage of the total wages for such particular calendar year.

20 ‘‘(2) The Secretary shall prescribe regulations under

21 which the national average wage index for any calendar

22 year shall be computed—

23 ‘‘(A) on the basis of amounts reported to the Sec24 retary of the Treasury or his delegate for such year,
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1 ‘‘(B) by disregarding the limitation on wages

2 specified in subsection (a)(1),

3 ‘‘(C) with respect to calendar years after 1990,

4 by incorporating deferred compensation amounts and

5 factoring in for such years the rate of change from

6 year to year in such amounts, in a manner consistent

7 with the requirements of section 10208 of the Omni8 bus Budget Reconciliation Act of 1989, and

9 ‘‘(D) with respect to calendar years before 1978,

10 in a manner consistent with the manner in which the

11 average of the total wages for each of such calendar

12 years was determined as provided by applicable law

13 as in effect for such years.’’.

14 (2) CONFORMING AMENDMENTS.—

15 (A) Section 213(d)(2)(B) of such Act (42

16 U.S.C. 413(d)(2)(B)) is amended by striking

17 ‘‘deemed average total wages’’ and inserting ‘‘na18 tional average wage index’’, and by striking ‘‘the

19 average of the total wages’’ and all that follows

20 and inserting ‘‘the national average wage index

21 (as so defined) for 1976,’’.

22 (B) Section 215(a)(1)(B)(ii) of such Act (42

23 U.S.C. 415(a)(1)(B)(ii)) is amended—
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1 (i) in subclause (I), by striking

2 ‘‘deemed average total wages’’ and inserting

3 ‘‘national average wage index’’; and

4 (ii) in subclause (II), by striking ‘‘the

5 average of the total wages’’ and all that fol6 lows and inserting ‘‘the national average

7 wage index (as so defined) for 1977.’’.

8 (C) Section 215(a)(1)(C)(ii) of such Act (42

9 U.S.C. 415(a)(1)(C)(ii)) is amended by striking

10 ‘‘deemed average total wages’’ and inserting ‘‘na11 tional average wage index’’.

12 (D) Section 215(a)(1)(D) of such Act (42

13 U.S.C. 415(a)(1)(D)) is amended—

14 (i) by striking ‘‘after 1978’’;

15 (ii) by striking ‘‘and the average of the

16 total wages (as described in subparagraph

17 (B)(ii)(I))’’ and inserting ‘‘and the national

18 average wage index (as defined in section

19 209(k)(1))’’; and

20 (iii) by striking the last sentence.

21 (E) Section 215(b)(3)(A)(ii) of such Act (42

22 U.S.C. 415(b)(3)(A)(ii)) is amended by striking

23 ‘‘deemed average total wages’’ each place it ap24 pears and inserting ‘‘national average wage

25 index’’.
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1 (F) Section 215(i)(1) of such Act (42 U.S.C.

2 415(i)(1)) is amended—

3 (i) in subparagraph (E), by striking

4 ‘‘SSA average wage index’’ and inserting

5 ‘‘national average wage index (as defined in

6 section 209(k)(1))’’; and

7 (ii) by striking subparagraph (G) and

8 redesignating subparagraph (H) as sub9 paragraph (G).

10 (G) Section 215(i)(2)(C)(ii) of such Act (42

11 U.S.C. 415(i)(1)(C)(ii)) is amended to read as

12 follows:

13 ‘‘(ii) The Secretary shall determine and promulgate

14 the OASDI fund ratio for the current calendar year on or

15 before November 1 of the current calendar year, based upon

16 the most recent data then available. The Secretary shall in17 clude a statement of the fund ratio and the national average

18 wage index (as defined in section 209(k)(1)) and a state19 ment of the effect such ratio and the level of such index

20 may have upon benefit increases under this subsection in

21 any notification made under clause (i) and any determina22 tion published under subparagraph (D).’’.

23 (H) Section 224(f)(2) of such Act (42

24 U.S.C. 424a(f)(2)) is amended—
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1 (i) in subparagraph (A), by adding

2 ‘‘and’’ at the end;

3 (ii) by striking subparagraph (C); and

4 (iii) by striking subparagraph (B) and

5 inserting the following:

6 ‘‘(B) the ratio of (i) the national average wage

7 index (as defined in section 209(k)(1)) for the cal8 endar year before the year in which such redetermina9 tion is made to (ii) the national average wage index

10 (as so defined) for the calendar year before the year

11 in which the reduction was first computed (but not

12 counting any reduction made in benefits for a pre13 vious period of disability).’’.

14 (f) TECHNICAL CORRECTIONS RELATED TO OASDI IN

15 THE OMNIBUS BUDGET RECONCILIATION ACT OF 1990.—

16 (1) AMENDMENTS RELATED TO PROVISIONS IN

17 SECTION 5103(b) RELATING TO DISABLED WIDOWS.—

18 Section 223(f)(2) of the Social Security Act (42

19 U.S.C. 423(f)(2)) is amended—

20 (A) in subparagraph (A), by striking ‘‘(in

21 a case to which clause (ii)(II) does not apply)’’;

22 and

23 (B) by striking subparagraph (B)(ii) and

24 inserting the following:
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1 ‘‘(ii) the individual is now able to en2 gage in substantial gainful activity; or’’.

3 (2) AMENDMENTS RELATED TO PROVISIONS IN

4 SECTION 5105(d) RELATING TO REPRESENTATIVE PAY5 EES.—

6 (A) TITLE II AMENDMENTS.—Section

7 5105(d)(1)(A) of the Omnibus Budget Reconcili8 ation Act of 1990 (Public Law 101–508) is

9 amended—

10 (i) by striking ‘‘Section 205(j)(5)’’ and

11 inserting ‘‘Section 205(j)(6)’’; and

12 (ii) by redesignating the paragraph (5)

13 as amended thereby as paragraph (6).

14 (B) TITLE XVI AMENDMENTS.—Section

15 1631(a)(2) of the Social Security Act (42 U.S.C.

16 1383(a)(2)) is amended—

17 (i) by redesignating subparagraphs (E)

18 and (F) as subparagraphs (F) and (G), re19 spectively; and

20 (ii) by inserting after subparagraph

21 (D) the following:

22 ‘‘(E) RESTITUTION.—In cases where the negligent fail23 ure of the Secretary to investigate or monitor a representa24 tive payee results in misuse of benefits by the representative

25 payee, the Secretary shall make payment to the beneficiary
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1 or the beneficiary’s representative payee of an amount equal

2 to such misused benefits. The Secretary shall make a good

3 faith effort to obtain restitution from the terminated rep4 resentative payee.’’.

5 (3) AMENDMENTS RELATED TO PROVISIONS IN

6 SECTION 5106 RELATING TO COORDINATION OF RULES

7 UNDER TITLES II AND XVI GOVERNING FEES FOR REP8 RESENTATIVES OF CLAIMANTS WITH ENTITLEMENTS

9 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 OFFSET

14 PROVISION.—Section 1631(d)(2)(A)(i) of the So15 cial Security Act (as amended by section

16 5106(a)(2) of the Omnibus Budget Reconcili17 ation Act of 1990) (42 U.S.C. 1383(d)(2)(A)(i))

18 is amended to read as follows:

19 ‘‘(i) by substituting, in subparagraphs (A)(ii)(I)

20 and (C)(i), the phrase ‘(as determined before any ap21 plicable reduction under section 1631(g), and reduced

22 by the amount of any reduction in benefits under this

23 title or title II made pursuant to section 1127(a))’ for

24 the parenthetical phrase contained therein; and’’.
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1 (B) CALCULATION OF PAST-DUE BENEFITS

2 FOR PURPOSES OF DETERMINING ATTORNEY

3 FEES IN JUDICIAL PROCEEDINGS.—

4 (i) IN GENERAL.—Section 206(b)(1) of

5 such Act (42 U.S.C. 406(b)(1)) is amend6 ed—

7 (I) by inserting ‘‘(A)’’ after

8 ‘‘(b)(1)’’; and

9 (II) by adding at the end the fol10 lowing new subparagraph:

11 ‘‘(B) For purposes of this paragraph—

12 ‘‘(i) the term ‘past-due benefits’ excludes any

13 benefits with respect to which payment has been con14 tinued pursuant to subsection (g) or (h) of section

15 223, and

16 ‘‘(ii) amounts of past-due benefits shall be taken

17 into account to the extent provided under the rules

18 applicable in cases before the Secretary.’’.

19 (ii) PROTECTION FROM OFFSETTING

20 SSI BENEFITS.—The last sentence of section

21 1127(a) of such Act (as added by section

22 5106(b) of the Omnibus Budget Reconcili23 ation Act of 1990) (42 U.S.C. 1320a–6(a))

24 is amended by striking ‘‘section 206(a)(4)’’
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1 and inserting ‘‘subsection (a)(4) or (b) of

2 section 206’’.

3 (4) APPLICATION OF SINGLE DOLLAR AMOUNT

4 CEILING TO CONCURRENT CLAIMS UNDER TITLES II

5 AND XVI.—

6 (A) IN GENERAL.—Section 206(a)(2) of

7 such Act (as amended by section 5106(a)(1) of

8 the Omnibus Budget Reconciliation Act of 1990)

9 (42 U.S.C. 406(a)(2)) is amended—

10 (i) by redesignating subparagraph (C)

11 as subparagraph (D); and

12 (ii) by inserting after subparagraph

13 (B) the following new subparagraph:

14 ‘‘(C) In any case involving—

15 ‘‘(i) an agreement described in subparagraph (A)

16 with any person relating to both a claim of entitle17 ment to past-due benefits under this title and a claim

18 of entitlement to past-due benefits under title XVI,

19 and

20 ‘‘(ii) a favorable determination made by the Sec21 retary with respect to both such claims,

22 the Secretary may approve such agreement only if the total

23 fee or fees specified in such agreement does not exceed, in

24 the aggregate, the dollar amount in effect under subpara25 graph (A)(ii)(II).’’.
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1 (B) CONFORMING AMENDMENT.—Section

2 206(a)(3)(A) of such Act (as amended by section

3 5106(a)(1) of the Omnibus Budget Reconcili4 ation Act of 1990) (42 U.S.C. 406(a)(3)(A)) is

5 amended by striking ‘‘paragraph (2)(C)’’ and in6 serting ‘‘paragraph (2)(D)’’.

7 (5) EFFECTIVE DATE.—Each amendment made

8 by this section shall take effect as if included in the

9 provisions of the Omnibus Budget Reconciliation Act

10 of 1990 to which such amendment relates.

11 (g) ELIMINATION OF ROUNDING DISTORTION IN THE

12 CALCULATION OF THE OLD-AGE, SURVIVORS, AND DISABIL13 ITY INSURANCE CONTRIBUTION AND BENEFIT BASE AND

14 THE EARNINGS TEST EXEMPT AMOUNTS.—

15 (1) ADJUSTMENT OF OASDI CONTRIBUTION AND

16 BENEFIT BASE.—

17 (A) IN GENERAL.—Section 230(b) of the So18 cial Security Act (42 U.S.C. 430(b)) is amended

19 by striking paragraphs (1) and (2) and inserting

20 the following:

21 ‘‘(1) $60,600, and

22 ‘‘(2) the ratio of (A) the national average wage

23 index (as defined in section 209(k)(1)) for the cal24 endar year before the calendar year in which the de25 termination under subsection (a) is made to (B) the
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1 national average wage index (as so defined) for

2 1992,’’.

3 (B) CONFORMING AMENDMENT RELATING TO

4 APPLICABLE PRIOR LAW.—Section 230(d) of such

5 Act (42 U.S.C. 430(d)) is amended by striking

6 ‘‘(except that’’ and all that follows through the

7 end and inserting ‘‘(except that, for purposes of

8 subsection (b) of such section 230 as so in effect,

9 the reference to the contribution and benefit base

10 in paragraph (1) of such subsection (b) shall be

11 deemed a reference to an amount equal to

12 $45,000, each reference in paragraph (2) of such

13 subsection (b) to the average of the wages of all

14 employees as reported to the Secretary of the

15 Treasury shall be deemed a reference to the na16 tional average wage index (as defined in section

17 209(k)(1)), the reference to a preceding calendar

18 year in paragraph (2)(A) of such subsection (b)

19 shall be deemed a reference to the calendar year

20 before the calendar year in which the determina21 tion under subsection (a) of such section 230 is

22 made, and the reference to a calendar year in

23 paragraph (2)(B) of such subsection (b) shall be

24 deemed a reference to 1992).’’.
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1 (C) ADJUSTMENT OF CONTRIBUTION AND

2 BENEFIT BASE APPLICABLE IN DETERMINING

3 YEARS OF COVERAGE FOR PURPOSES OF SPECIAL

4 MINIMUM PRIMARY INSURANCE AMOUNT.—Sec5 tion 215(a)(1)(C)(ii) of such Act is amended by

6 striking ‘‘(except that’’ and all that follows

7 through the end and inserting ‘‘(except that, for

8 purposes of subsection (b) of such section 230 as

9 so in effect, the reference to the contribution and

10 benefit base in paragraph (1) of such subsection

11 (b) shall be deemed a reference to an amount

12 equal to $45,000, each reference in paragraph (2)

13 of such subsection (b) to the average of the wages

14 of all employees as reported to the Secretary of

15 the Treasury shall be deemed a reference to the

16 national average wage index (as defined in sec17 tion 209(k)(1)), the reference to a preceding cal18 endar year in paragraph (2)(A) of such sub19 section (b) shall be deemed a reference to the cal20 endar year before the calendar year in which the

21 determination under subsection (a) of such sec22 tion 230 is made, and the reference to a calendar

23 year in paragraph (2)(B) of such subsection (b)

24 shall be deemed a reference to 1992).’’.
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1 (2) ADJUSTMENT OF EARNINGS TEST EXEMPT

2 AMOUNT.—Section 203(f)(8)(B)(ii) of the Social Secu3 rity Act (42 U.S.C. 403(f)(8)(B)(ii)) is amended to

4 read as follows:

5 ‘‘(ii) the product of the corresponding ex6 empt amount which is in effect with respect to

7 months in the taxable year ending after 1993

8 and before 1995, and the ratio of—

9 ‘‘(I) the national average wage index

10 (as defined in section 209(k)(1)) for the cal11 endar year before the calendar year in

12 which the determination under subpara13 graph (A) is made, to

14 ‘‘(II) the national average wage index

15 (as so defined) for 1992,

16 with such product, if not a multiple of $10,

17 being rounded to the next higher multiple of $10

18 where such product is a multiple of $5 but not

19 of $10 and to the nearest multiple of $10 in any

20 other case.’’.

21 (3) EFFECTIVE DATES.—

22 (A) The amendments made by subsection

23 (a) shall be effective with respect to the deter24 mination of the contribution and benefit base for

25 years after 1994.
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1 (B) The amendment made by subsection (b)

2 shall be effective with respect to the determina3 tion of the exempt amounts applicable to any

4 taxable year ending after 1994.

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