`[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4277 Engrossed in House (EH)]

103d CONGRESS

  2d Session

                               H. R. 4277

_______________________________________________________________________

                                 AN ACT

   To establish the Social Security Administration as an independent 
 agency and to make other improvements in the old-age, survivors, and 
                     disability insurance program.





103d CONGRESS
  2d Session
                                H. R. 4277

_______________________________________________________________________

                                 AN ACT


 
   To establish the Social Security Administration as an independent 
 agency and to make other improvements in the old-age, survivors, and 
                     disability insurance program.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Social Security 
Administrative Reform Act of 1994''.
    (b) Table of Contents.--

Sec. 1. Short title and table of contents.
Sec. 2. Declaration of purposes.
  TITLE I--ESTABLISHMENT OF THE SOCIAL SECURITY ADMINISTRATION AS AN 
                           INDEPENDENT AGENCY

Sec. 101. Establishment of the Social Security Administration as a 
                            separate, independent agency; 
                            responsibilities of the agency.
Sec. 102. Social Security Board, executive director, deputy director, 
                            beneficiary ombudsman; other officers.
Sec. 103. Personnel; budgetary matters; seal of office.
Sec. 104. Transfers to the new Social Security Administration.
Sec. 105. Transitional rules.
Sec. 106. Conforming amendments to Titles II and XVI of the Social 
                            Security Act.
Sec. 107. Other conforming amendments.
Sec. 108. Rules of construction.
Sec. 109. Effective dates.
   TITLE II--IMPROVEMENTS TO THE OLD-AGE, SURVIVORS, AND DISABILITY 
                           INSURANCE PROGRAM

Sec. 201. Restrictions on payment of benefits based on disability to 
                            substance abusers.
Sec. 202. Issuance of physical documents in the form of bonds, notes, 
                            or certificates to the social security 
                            trust funds.
Sec. 203. Explicit requirements for maintenance of telephone access to 
                            local offices of the Social Security 
                            Administration.
Sec. 204. Expansion of State option to exclude service of election 
                            officials or election workers from 
                            coverage.
Sec. 205. Use of social security numbers by States and local 
                            governments and Federal district courts for 
                            jury selection purposes.
Sec. 206. Authorization for all States to extend coverage to State and 
                            local policemen and firemen under existing 
                            coverage agreements.
Sec. 207. Limited exemption for Canadian ministers from certain self-
                            employment tax liability.
Sec. 208. Exclusion of totalization benefits from the application of 
                            the windfall elimination provision.
Sec. 209. Exclusion of military reservists from application of the 
                            government pension offset and windfall 
                            elimination provisions.
Sec. 210. Repeal of the facility-of-payment provision.
Sec. 211. Maximum family benefits in guarantee cases.
Sec. 212. Authorization for disclosure by the Secretary of Health and 
                            Human Services of information for purposes 
                            of public or private epidemiological and 
                            similar research.
Sec. 213. Misuse of symbols, emblems, or names in reference to social 
                            security programs and agencies.
Sec. 214. Increased penalties for unauthorized disclosure of social 
                            security information.
Sec. 215. Increase in authorized period for extension of time to file 
                            annual earnings report.
Sec. 216. Extension of disability insurance program demonstration 
                            project authority.
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.

SEC. 2. DECLARATION OF PURPOSES.

    The purposes of this Act are as follows:
            (1) To establish the Social Security Administration as an 
        independent agency, separate from the Department of Health and 
        Human Services.
            (2) To charge the Social Security Administration with 
        administration of the old-age, survivors, and disability 
        insurance program and supplemental security income program.
            (3) To establish a Social Security board as head of the 
        Social Security Administration and define the powers and duties 
        of such Board.
            (4) To establish an Executive Director of the 
        Administration and define the powers and duties of the 
        Executive Director.
            (5) To provide for delegating major authorities to the 
        Board and the Executive Director.
            (6) To make other improvements in the old-age, survivors, 
        and disability insurance program under title II of the Social 
        Security Act.

  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.

    Section 701 of the Social Security Act (42 U.S.C. 901) is amended 
to read as follows:

                    ``social security administration

    ``Sec. 701. There is hereby established, as an independent agency 
in the executive branch of the Government, a Social Security 
Administration. It shall be the duty of the Administration to 
administer the old-age, survivors, and disability insurance program 
under title II and the supplemental security income program under title 
XVI.''.

SEC. 102. SOCIAL SECURITY BOARD, EXECUTIVE DIRECTOR, DEPUTY DIRECTOR, 
              BENEFICIARY OMBUDSMAN; OTHER OFFICERS.

    (a) In General.--Section 702 of the Social Security Act (42 U.S.C. 
902) is amended to read as follows:

      ``social security board; executive director; other officers

                        ``Social Security Board

    ``Sec. 702. (a)(1)(A) The Administration shall be governed by a 
Social Security Board. The Board shall be composed of three members 
appointed by the President, by and with the advice and consent of the 
Senate. The members shall be chosen on the basis of their integrity, 
impartiality, and good judgment, and shall be individuals who are, by 
reason of their education, experience, and attainments, exceptionally 
qualified to perform the duties of members of the Board.
    ``(B)(i) Except as provided in clauses (ii) and (iii), members of 
the Board shall be appointed for terms of six years. A member of the 
Board may be removed only pursuant to a finding by the President of 
neglect of duty or malfeasance in office. The President shall transmit 
any such finding to the Speaker of the House of Representatives and the 
majority leader of the Senate not later than five days after the date 
on which such finding is made.
    ``(ii) Of the members first appointed--
            ``(I) one shall be appointed for a term of 2 years,
            ``(II) one shall be appointed for a term of 4 years, and
            ``(III) one shall be appointed for a term of 6 years,
as designated by the President at the time of appointment. Such members 
shall be appointed after active consideration of recommendations made 
by the chairman of the Committee on Ways and Means of the House of 
Representatives and of recommendations made by the chairman of the 
Committee on Finance of the Senate.
    ``(iii) The President may not nominate an individual for 
appointment to a term of office as member of the Board before the 
commencement of the President's term of office in which the member's 
term of office commences. Any member appointed to a term of office 
after the commencement of such term may serve under such appointment 
only for the remainder of such term. A member may, at the request of 
the President, serve for not more than one year after the expiration of 
his or her term until his or her successor has taken office. A member 
of the Board may be appointed for additional terms.
    ``(C) Not more than two members of the Board shall be of the same 
political party.
    ``(D) A member of the Board may not, during his or her term as 
member, engage in any other business, vocation, profession, or 
employment. A member of the Board may continue as a member of the Board 
for not longer than the 30-day period beginning on the date such member 
first fails to meet the requirements of the preceding sentence.
    ``(E) Two members of the Board shall constitute a quorum, except 
that one member may hold hearings.
    ``(F) A member of the Board shall be designated by the President to 
serve as Chairperson of the Board for a term of 4 years.
    ``(G) The Board shall meet at the call of the Chairperson or two 
members of the Board.
    ``(2) Each member of the Board shall be compensated at the rate 
provided for level II of the Executive Schedule.
    ``(3) The Board shall--
            ``(A) govern by regulation the old-age, survivors, and 
        disability insurance program under title II and the 
        supplemental security income program under title XVI,
            ``(B) establish the Administration and oversee its 
        efficient and effective operation,
            ``(C) establish policy and devise long-term plans to 
        promote and maintain the effective implementation of programs 
        referred to in subparagraph (A),
            ``(D) appoint an Executive Director of the Administration, 
        as described in subsection (b), to act as the chief operating 
        officer of the Administration responsible for administering the 
        programs referred to in subparagraph (A),
            ``(E) constitute three of the members of the Board of 
        Trustees of the Federal Old-Age and Survivors Insurance Trust 
        Fund and the Federal Disability Insurance Trust Fund, with the 
        Chairperson of the Social Security Board serving as Chairperson 
        of such Board of Trustees,
            ``(F) prepare an annual budget for the Administration, 
        which shall be submitted by the President to the Congress 
        without revision, together with the President's annual budget 
        for the Administration,
            ``(G) study and make recommendations to the Congress and 
        the President as to the most effective methods of providing 
        economic security through social insurance, supplemental 
        security income, and related programs and as to legislation and 
        matters of administrative policy concerning the programs 
        referred to in subparagraph (A),
            ``(H) provide the Congress and the President with the 
        ongoing actuarial and other analysis undertaken by the 
        Administration with respect to the programs referred to in 
        subparagraph (A) and any other information relating to such 
        programs, and
            ``(I) conduct policy analysis and research relating to the 
        programs referred to in subparagraph (A).
    ``(4)(A) The Board may prescribe such rules and regulations as the 
Board determines necessary or appropriate to carry out the functions of 
the Administration. The regulations prescribed by the Board shall be 
subject to the rulemaking procedures established under section 553 of 
title 5, United States Code.
    ``(B) The Board may establish, alter, consolidate, or discontinue 
such organizational units or components within the Administration as 
the Board considers necessary or appropriate to carry out its 
functions, except that this subparagraph shall not apply with respect 
to any unit, component, or position provided for by this Act.
    ``(C) The Board may, with respect to the administration of the old-
age, survivors, and disability insurance program under title II and the 
supplemental security income program under title XVI, assign duties, 
and delegate, or authorize successive redelegations of, authority to 
act and to render decisions, to such officers and employees as the 
Board may find necessary. Within the limitations of such delegations, 
redelegations, or assignments, all official acts and decisions of such 
officers and employees shall have the same force and effect as though 
performed or rendered by the Board.

                          ``Executive Director

    ``(b)(1) There shall be in the Administration an Executive Director 
who shall be appointed by the Social Security Board.
    ``(2)(A) The Executive Director shall be appointed for a term of 
four years. An individual appointed to a term of office as Executive 
Director after the commencement of such term of office may serve under 
such appointment only for the remainder of such term. An individual 
may, at the request of the Chairperson of the Board, serve as Executive 
Director after the expiration of his or her term for not more than one 
year until his or her successor has taken office. An individual may be 
appointed as Executive Director for additional terms.
    ``(B) An individual may be removed from the office of Executive 
Director before completion of his or her term only for cause found by 
the Board.
    ``(3) The Executive Director shall be compensated at the rate 
provided for level II of the Executive Schedule.
    ``(4) The Executive Director shall--
            ``(A) constitute the chief operating officer of the 
        Administration, responsible for administering, in accordance 
        with applicable statutes and regulations, the old-age, 
        survivors, and disability insurance program under title II and 
        the supplemental security income program under title XVI,
            ``(B) maintain an efficient and effective operational 
        structure for the Administration,
            ``(C) implement the long-term plans of the Board to promote 
        and maintain the effective implementation of such programs,
            ``(D) report annually to the Board on program costs under 
        titles II and XVI, make annual budgetary recommendations to the 
        Board for the ongoing administrative costs of the 
        Administration under this Act, and defend the recommendations 
        before the Board,
            ``(E) advise the Board and the Congress on the effect on 
        the administration of such programs of proposed legislative 
        changes in such programs,
            ``(F) serve as Secretary of the Board of Trustees of the 
        Federal Old-Age and Survivors Insurance Trust Fund and the 
        Federal Disability Insurance Trust Fund,
            ``(G) report in December of each year to the Board for 
        transmittal to the Congress concerning the administrative 
        endeavors and accomplishments of the Administration, and
            ``(H) carry out such additional duties as are assigned by 
        the Board from time to time.
Any reference to the Board in this Act or any other provision of law in 
connection with the exercise of a function of the Board which is 
delegated to the Executive Director pursuant to this section shall be 
considered a reference to the Executive Director.

                  ``Deputy Director of Social Security

    ``(c)(1) There shall be in the Office of the Executive Director a 
Deputy Director, who shall be appointed by and serve at the pleasure of 
the Executive Director.
    ``(2) The Deputy Director shall be compensated at the rate provided 
for level III of the Executive Schedule.
    ``(3) The Deputy Director shall perform such duties and exercise 
such powers as the Executive Director shall from time to time assign or 
delegate. The Deputy Director shall be Acting Executive Director of the 
Administration during the absence or disability of the Executive 
Director and, unless the Board designates another officer of the 
Government as Acting Executive Director, in the event of a vacancy in 
the office of the Executive Director.

                           ``General Counsel

    ``(d)(1) There shall be in the Administration a General Counsel, 
who shall be appointed by and serve at the pleasure of the Board. The 
General Counsel shall be the principal legal officer in the 
Administration.
    ``(2) The General Counsel shall be compensated at the rate provided 
for level IV of the Executive Schedule.

                          ``Inspector General

    ``(e)(1) There shall be in the Administration an Office of the 
Inspector General. Such Office shall be headed by an Inspector General 
appointed in accordance with the Inspector General Act of 1978.
    ``(2) The Inspector General shall be compensated at the rate 
provided for level IV of the Executive Schedule.

                        ``Beneficiary Ombudsman

    ``(f)(1) There shall be in the Administration an Office of the 
Beneficiary Ombudsman, to be headed by a Beneficiary Ombudsman 
appointed by the Board.
    ``(2)(A) The Beneficiary Ombudsman shall be appointed for a term of 
five years, except that the individual first appointed to the Office of 
Beneficiary Ombudsman shall be appointed for a term ending September 
30, 2000. An individual appointed to a term of office as Beneficiary 
Ombudsman after the commencement of such term may serve under such 
appointment only for the remainder of such term. An individual may, at 
the request of the Chairperson of the Board, serve as Beneficiary 
Ombudsman after the expiration of his or her term for not more than one 
year until his or her successor has taken office. An individual may be 
appointed as Beneficiary Ombudsman for additional terms.
    ``(B) An individual may be removed from the office of Beneficiary 
Ombudsman before completion of his or her term only for cause found by 
the Board.
    ``(3) The Beneficiary Ombudsman shall be compensated at the rate 
provided for level V of the Executive Schedule.
    ``(4) The duties of the Beneficiary Ombudsman are as follows:
            ``(A) To represent within the Administration's 
        decisionmaking process the interests and concerns of 
        beneficiaries under the old-age, survivors, and disability 
        insurance program under title II and the supplemental security 
        income program under title XVI.
            ``(B) To review the Administration's policies and 
        procedures for possible adverse effects on such beneficiaries.
            ``(C) To recommend within the Administration's 
        decisionmaking process changes in policies which have caused 
        problems for such beneficiaries.
            ``(D) To help resolve the problems under such programs of 
        individual beneficiaries in unusual or difficult circumstances, 
        as determined by the Administration.
            ``(E) To represent within the Administration's 
        decisionmaking process the views of beneficiaries in the design 
        of forms and the issuance of instructions.
    ``(5) The Board shall assure that the Office of the Beneficiary 
Ombudsman has staff sufficient to enable the Beneficiary Ombudsman to 
efficiently carry out his or her duties. Such staff shall be located in 
the regional offices, program centers, and central office of the 
Administration.
    ``(6) The annual report of the Board under section 704 shall 
include a description of the activities of the Beneficiary Ombudsman.

                       ``Administrative Law Judge

    ``(g)(1) There shall be in the Administration an Office of the 
Chief Administrative Law Judge, who shall be appointed by the Board. 
The duty of the Chief Administrative Law Judge shall be to administer 
the affairs of the administrative law judges serving in the 
Administration in a manner so as to ensure that hearings and other 
business are conducted by the administrative law judges in accordance 
with applicable law and regulations.
    ``(2) The Chief Administrative Law Judge shall report directly to 
the Board.''.
    (b) Conforming Amendments Relating to Composition of Board of 
Trustees of OASDI Trust Funds.--Section 201(c) of such Act (42 U.S.C. 
401(c)) is amended--
            (1) in the first sentence, by striking ``shall be composed 
        of'' and all that follows down through ``ex officio'' and 
        inserting the following: ``shall be composed of the members of 
        the Social Security Board, the Secretary of the Treasury, the 
        Secretary of Health and Human Services, all ex officio'';
            (2) by inserting after the first sentence the following new 
        sentence: ``The Chairperson of the Social Security Board shall 
        be the Chairperson of the Board of Trustees.''; and
            (3) by striking ``Commissioner of Social Security'' and 
        inserting ``Executive Director of the Social Security 
        Administration''.
    (c) Interim Authority of the Commissioner.--The President shall 
nominate for appointment the initial members of the Social Security 
Board not later than April 1, 1995. In the event that, as of October 1, 
1995, all members of the Social Security Board have not entered upon 
office, until all members of the Board have entered upon office, the 
officer serving on October 1, 1995, as Commissioner of Social Security 
in the Department of Health and Human Services (or Acting Commissioner, 
if applicable), or such officer's successor, shall, while continuing to 
serve as Commissioner of Social Security (or Acting Commissioner) in 
such Department, serve as head of the Social Security Administration 
established under section 701 of the Social Security Act (as amended by 
this Act) and shall assume the powers and duties of such Board and of 
the Executive Director under such Act (as amended by this Act).

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

    Section 703 of the Social Security Act (42 U.S.C. 903) is amended 
to read as follows:

          ``administrative duties of the social security board

                              ``Personnel

    ``Sec. 703. (a)(1) The Social Security Board shall appoint such 
additional officers and employees as it considers necessary to carry 
out its functions. Except as otherwise provided in any other provision 
of law, such officers and employees shall be appointed, and their 
compensation shall be fixed, in accordance with title 5, United States 
Code.
    ``(2) The Board may procure the services of experts and consultants 
in accordance with the provisions of section 3109 of title 5, United 
States Code.
    ``(3) The Director of the Office of Personnel Management shall 
authorize for the Administration a total number of Senior Executive 
Service positions which is greater than the number of such positions 
authorized in the Social Security Administration in the Department of 
Health and Human Services as of immediately before the date of the 
enactment of the Social Security Administrative Reform Act of 1994, to 
the extent that the greater number of such authorized positions is 
specified in the comprehensive workforce plan as established and 
revised by the Board under subsection (b)(1). The total number of such 
positions authorized for the Administration pursuant to such section 
3133 shall not at any time be less than the number of such authorized 
positions as of immediately before such date.
    ``(4) In addition to the positions of the Administration in the 
Executive Schedule specified in section 702, the Administration is 
authorized six additional positions at level IV of the Executive 
Schedule and six additional positions at level V of the Executive 
Schedule.

                          ``Budgetary Matters

    ``(b) Appropriations requests for staffing and personnel of the 
Administration shall be based upon a comprehensive workforce plan, 
which shall be established and revised from time to time by the Board.

                            ``Seal of Office

    ``(c) The Board shall cause a seal of office to be made for the 
Administration of such design as the Board shall approve. Judicial 
notice shall be taken of such seal.''.

SEC. 104. TRANSFERS TO THE NEW SOCIAL SECURITY ADMINISTRATION.

    (a) Functions.--There are transferred to the Social Security 
Administration all functions carried out by the Secretary of Health and 
Human Services with respect to the programs and activities the 
administration of which is vested in the Social Security Administration 
by reason of this Act and the amendments made thereby. The Social 
Security Board shall allocate such functions in accordance with 
sections 701, 702, and 703 of the Social Security Act (as amended by 
this Act).
    (b) Personnel, Assets, Etc.--(1) There are transferred from the 
Department of Health and Human Services to the Social Security 
Administration, for appropriate allocation by the Social Security Board 
in the Social Security Administration--
            (A) the personnel (other than administrative law judges) 
        employed in connection with the functions transferred by this 
        Act and the amendments made thereby, as considered appropriate 
        by the Board in consultation with the Secretary of Health and 
        Human Services,
            (B) such number of administrative law judges as are 
        necessary to carry out the functions transferred by this Act 
        and the amendments made thereby, as determined by the Board in 
        consultation with the Secretary of Health and Human Services, 
        and
            (C) the assets, liabilities, contracts, property, records, 
        and unexpended balance of appropriations, authorizations, 
        allocations, and other funds employed, held, or used in 
        connection with such functions, arising from such functions, or 
        available, or to be made available, in connection with such 
        functions.
    (2) Unexpended funds transferred pursuant to this subsection shall 
be used only for the purposes for which the funds were originally 
authorized and appropriated.
    (3) The Secretary of Health and Human Services shall terminate--
            (A) six positions in the Department of Health and Human 
        Services placed in level IV of the Executive Schedule (or 
        equivalent positions) other than positions specifically 
        required under section 5315 of title 5, United States Code, or 
        any other provision of law, and
            (B) six positions in such Department placed in level V of 
        the Executive Schedule (or equivalent positions) other than 
        positions specifically required under section 5316 of such 
        title or any other provision of law.
    (4) The transfer pursuant to this section of full-time personnel 
(except special Government employees) and part-time personnel holding 
permanent positions shall not cause any such employees to be separated 
or reduced in grade or compensation for 1 year after such transfer or 
October 1, 1995, whichever is later.
    (c) Abolishment of Office of Commissioner in the Department of 
Health and Human Services.--Effective upon the entry upon office of all 
initial members of the Social Security Board pursuant to section 702 of 
the Social Security Act (as amended by this Act), the position of 
Commissioner of Social Security in the Department of Health and Human 
Services is abolished.

SEC. 105. TRANSITIONAL RULES.

    (a) Interim Authority for Appointment and Compensation.--At any 
time on or after the date of the enactment of this Act--
            (1) any of the officers provided for in section 702 of the 
        Social Security Act (as amended by this Act) may enter upon 
        office, as provided in such section, and
            (2) the Social Security Board, upon entry upon office of 
        all of the members thereof, may prescribe regulations providing 
        for the orderly transfer of proceedings before the Secretary of 
        Health and Human Services to the Social Security Board.
Funds available to any official or component of the Department of 
Health and Human Services, functions of which are transferred to the 
Social Security Board or the Social Security Administration by this 
Act, may be used, with the approval of the Director of the Office of 
Management and Budget, to pay the compensation and expenses of any 
officer entering upon office pursuant to this section until such time 
as funds for that purpose are otherwise available.
    (b) Continuation of Orders, Determinations, Rules, Regulations, 
Etc.--All orders, determinations, rules, regulations, permits, 
contracts, collective bargaining agreements, recognitions of labor 
organizations, certificates, licenses, and privileges--
            (1) which have been issued, made, promulgated, granted, or 
        allowed to become effective, in the exercise of functions (A) 
        which were exercised by the Secretary of Health and Human 
        Services (or his delegate), and (B) which relate to functions 
        which, by reason of this Act, the amendments made thereby, and 
        regulations prescribed thereunder, are vested in the Social 
        Security Board, and
            (2) which are in effect immediately before October 1, 1995,
shall (to the extent that they relate to functions described in 
paragraph (1)(B)) continue in effect according to their terms until 
modified, terminated, suspended, set aside, or repealed, in accordance 
with law, by such Board.
    (c) Continuation of Proceedings.--The provisions of this Act 
(including the amendments made thereby) shall not affect any proceeding 
pending before the Secretary of Health and Human Services immediately 
before October 1, 1995, with respect to functions vested (by reason of 
this Act, the amendments made thereby, and regulations prescribed 
thereunder) in the Social Security Board, except that such proceedings, 
to the extent that they relate to such functions, shall continue before 
such Board. Orders shall be issued under any such proceeding, appeals 
taken therefrom, and payments shall be made pursuant to such orders, in 
like manner as if this Act had not been enacted, and orders issued in 
any such proceeding shall continue in effect until modified, 
terminated, superseded, or repealed by such Board, by a court of 
competent jurisdiction, or by operation of law.
    (d) Continuation of Suits.--Except as provided in this subsection--
            (1) the provisions of this Act shall not affect suits 
        commenced prior to October 1, 1995; and
            (2) in all such suits proceedings shall be had, appeals 
        taken, and judgments rendered, in the same manner and effect as 
        if this Act had not been enacted. No cause of action, and no 
        suit, action, or other proceeding commenced by or against any 
        officer in his official capacity as an officer of the 
        Department of Health and Human Services, shall abate by reason 
        of the enactment of this Act. Causes of action, suits, actions, 
        or other proceedings may be asserted by or against the United 
        States and the Social Security Administration, or such official 
        of such Administration as may be appropriate, and, in any 
        litigation pending immediately before October 1, 1995, the 
        court may at any time, on its own motion or that of a party, 
        enter an order which will give effect to the provisions of this 
        subsection (including, where appropriate, an order for 
        substitution of parties).
    (e) Continuation of Penalties.--This Act shall not have the effect 
of releasing or extinguishing any criminal prosecution, penalty, 
forfeiture, or liability incurred as a result of any function which (by 
reason of this Act), the amendments made thereby, and regulations 
prescribed thereunder) is vested in the Social Security Board.
    (f) Judicial Review.--Orders and actions of the Social Security 
Board in the exercise of functions vested in such Board under this Act 
(and the amendments made thereby) shall be subject to judicial review 
to the same extent and in the same manner as if such orders had been 
made and such actions had been taken by the Secretary of Health and 
Human Services in the exercise of such functions immediately before 
October 1, 1995. Any statutory requirements relating to notice, 
hearings, action upon the record, or administrative review that apply 
to any function so vested in such Board shall continue to apply to the 
exercise of such function by such Board.
    (g) Exercise of Functions.--In the exercise of the functions vested 
in the Social Security Board under this Act, the amendments made 
thereby, and regulations prescribed thereunder, such Board shall have 
the same authority as that vested in the Secretary of Health and Human 
Services with respect to the exercise of such functions immediately 
preceding the vesting of such functions in such Board, and actions of 
such Board shall have the same force and effect as when exercised by 
such Secretary.
    (h) Operation of Transitional Rules in the Event of Interim 
Authority in the Commissioner.--For purposes of this section, in any 
case in which the powers and duties to be transferred to the Social 
Security Board are transferred to the Commissioner of Social Security 
(or acting Commissioner) in the Department of Health and Human Services 
for an interim period pursuant to section 102(c), the preceding 
provisions of this section shall apply with respect to the transfer of 
such powers and duties to and from such Commissioner (or acting 
Commissioner) pursuant to section 102(c) in the same manner and to the 
same extent as they would have applied to a direct transfer from the 
Secretary of Health and Human Services to the Social Security Board if 
all members of the Board had entered upon office.

SEC. 106. CONFORMING AMENDMENTS TO TITLES II AND XVI OF THE SOCIAL 
              SECURITY ACT.

    (a) In General.--Title II of the Social Security Act (other than 
section 201, section 218(d), section 226, section 226A, and section 
231(c)) and title XVI of such Act are each amended--
            (1) by striking, wherever it appears therein, ``Secretary 
        of Health and Human Services'' and inserting ``Social Security 
        Board'';
            (2) by striking, wherever it appears therein, ``Department 
        of Health and Human Services'' and inserting ``Social Security 
        Administration'';
            (3) by striking, wherever it appears therein, 
        ``Department'' (but only if it is not immediately succeeded by 
        the words ``of Health and Human Services'', and only if it is 
        used in reference to the Department of Health and Human 
        Services) and inserting ``Administration'';
            (4) by striking, wherever it appears therein, each of the 
        following words (but, in the case of any such word only if such 
        word refers to the Secretary of Health and Human Services): 
        ``Secretary'', ``Secretary's'', ``his'', ``him'', and ``he'', 
        and inserting (in the case of the word ``Secretary'') ``Social 
        Security Board'', (in the case of the word ``Secretary's'') 
        ``Board's'', (in the case of the word ``his'') ``the Board's'', 
        (in the case of the word ``him'') ``the Board'', and (in the 
        case of the word ``he'') ``the Board''; and
            (5) by striking, wherever it appears therein, ``Internal 
        Revenue Code of 1954'' and inserting ``Internal Revenue Code of 
        1986''.
    (b) Amendments to Section 218.--Section 218(d) of such Act (42 
U.S.C. 418(d)) is amended by striking ``Secretary'' each place it 
appears in paragraphs (3) and (7) and inserting ``Social Security 
Board''.
    (c) Amendments to Section 222.--Section 222(d) of such Act (42 
U.S.C. 422(d)) is amended--
            (1) in the last sentence of paragraph (1), by striking 
        ``Commissioner of Social Security'' and inserting ``Executive 
        Director of the Social Security Administration''; and
            (2) in the first sentence of paragraph (2), by striking 
        ``Commissioner of Social Security'' and inserting ``Executive 
        Director of the Social Security Administration''.
    (d) Amendment to Section 231.--Section 231(c) of such Act (42 
U.S.C. 431(c)) is amended by striking ``Secretary determines'' and 
inserting ``Social Security Board and the Secretary jointly 
determine''.
    (e) Amendment to Section 1615.--Section 1615(d) of such Act (422 
U.S.C. 1832d(d)) is amended by striking ``Commissioner of Social 
Security'' and inserting ``Executive Director of the Social Security 
Administration''.

SEC. 107. OTHER CONFORMING AMENDMENTS.

    Title VII of the Social Security Act is amended--
            (1) by striking section 704 (42 U.S.C. 904) and inserting 
        the following new section:

                               ``reports

    ``Sec. 704. The Secretary and the Social Security Board shall make 
full reports to Congress, within 120 days after the beginning of each 
regular session, of the administration of the functions with which they 
are charged under this Act. In addition to the number of copies of such 
reports authorized by other law to be printed, there is hereby 
authorized to be printed not more than 5,000 copies of each such report 
for use by the Secretary and Social Security Board for distribution to 
Members of Congress and to State and other public or private agencies 
or organizations participating in or concerned with the programs 
provided for in this Act.'';
            (2) in section 709(b)(2) (42 U.S.C. 910(b)(2)), by striking 
        ``(as estimated by the Secretary)'' and inserting ``, as 
        estimated by the Social Security Board or the Secretary 
        (whichever administers the program involved),''; and
            (3) by adding at the end thereof the following new section:

                  ``duties and authority of secretary

    ``Sec. 712. (a) The Secretary shall perform the duties imposed upon 
him by this Act and shall also have the duty of studying and making 
recommendations as to the most effective methods of providing economic 
security and as to legislation and matters of administrative policy 
concerning the programs administered by the Secretary and related 
subjects; except that nothing in this section shall be construed to 
require the Secretary to make studies or recommendations with respect 
to programs administered by the Social Security Administration.
    ``(b) The Secretary is authorized to appoint and fix the 
compensation of such officers and employees, and to make such 
expenditures, as may be necessary for carrying out the Secretary's 
functions under this Act. Appointments of attorneys and experts may be 
made without regard to the civil service laws.''.

SEC. 108. RULES OF CONSTRUCTION.

    (a) References to the Department of Health and Human Services.--
Whenever any reference is made in any provision of law (other than this 
Act or a provision of law amended by this Act), regulation, rule, 
record, court order, or other document to the Department of Health and 
Human Services with respect to such Department's functions under the 
old-age, survivors, and disability insurance program under title II of 
the Social Security Act or the supplemental security income program 
under title XVI of such Act, such reference shall be considered a 
reference to the Social Security Administration.
    (b) References to the Secretary of Health and Human Services.--
Whenever any reference is made in any provision of law (other than this 
Act or a provision of law amended by this Act), regulation, rule, 
record, court order, or other document to the Secretary of Health and 
Human Services with respect to such Secretary's functions under such 
programs, such reference shall be considered a reference to the Social 
Security Board.
    (c) References to Other Officers and Employees.--Whenever any 
reference is made in any provision of law (other than this Act or a 
provision of law amended by this Act), regulation, rule, record, or 
document to any other officer or employee of the Department of Health 
and Human Services with respect to such officer's or employee's 
functions under such programs, such reference shall be considered a 
reference to the appropriate officer or employee of the Social Security 
Administration.

SEC. 109. EFFECTIVE DATES.

    (a) In General.--Sections 101, 102(a), 103, 104, 106, 107, and 108 
of this Act (and the amendments made thereby) shall take effect October 
1, 1995.
    (b) Exceptions.--Section 102(b) of this Act shall take effect upon 
the entry upon office of all initial members of the Social Security 
Board. Sections 102(c) and 105 of this Act shall take effect on the 
date of the enactment of this Act.
    (c) New Spending Authority.--Any new spending authority provided by 
this title shall be effective for any fiscal year only to such extent 
or in such amounts as are provided in advance in appropriation Acts.

   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.

    (a) Amendments Relating to Benefits Based on Disability Under Title 
II of the Social Security Act.--
            (1) Required payment of benefits to representative 
        payees.--
                    (A) In general.--Section 205(j)(1) of the Social 
                Security Act (42 U.S.C. 405(j)(1)) is amended--
                            (i) by inserting after the first sentence 
                        the following new sentence: ``In the case of an 
                        individual entitled to benefits based on 
                        disability, if alcoholism or drug addiction is 
                        a contributing factor material to the 
                        Secretary's determination that the individual 
                        is under a disability, certification of payment 
                        of such benefits to a representative payee 
                        shall be deemed to serve the interest of such 
                        individual under this title.''; and
                            (ii) in the last sentence, by inserting ``, 
                        if the interest of the individual under this 
                        title would be served thereby,'' after 
                        ``alternative representative payee or''.
                    (B) Effective date.--The amendments made by 
                subparagraph (A) shall apply with respect to benefits 
                for months beginning after 180 days after the date of 
                the enactment of this Act.
                    (C) Study regarding feasibility, cost, and equity 
                of requiring representative payees for all disability 
                beneficiaries suffering from alcoholism or drug 
                addiction.--
                            (i) Study.--As soon as practicable after 
                        the date of the enactment of this Act, the 
                        Secretary of Health and Human Services shall 
                        conduct a study of the representative payee 
                        program. In such study, the Secretary shall 
                        examine--
                                    (I) the feasibility, cost, and 
                                equity of requiring representative 
                                payees for all individuals entitled to 
                                benefits based on disability under 
                                title II or XVI of the Social Security 
                                Act who suffer from alcoholism or drug 
                                addiction, irrespective of whether the 
                                alcoholism or drug addiction was 
                                material in any case to the Secretary's 
                                determination of disability,
                                    (II) the feasibility of and 
                                appropriate timetable for providing 
                                benefits through non-cash means, 
                                including (but not limited to) 
                                vouchers, debit cards, and electronic 
                                benefits transfer systems,
                                    (III) the extent to which child 
                                beneficiaries are afflicted by drug 
                                addition or alcoholism and ways of 
                                addressing such affliction, including 
                                the feasibility of requiring treatment, 
                                and
                                    (IV) the extent to which children's 
                                representative payees are afflicted by 
                                drug addiction or alcoholism, and 
                                methods to identify children's 
                                representative payees afflicted by drug 
                                addition or alcoholism and to ensure 
                                that benefits continue to be provided 
                                to beneficiaries appropriately.
                            (ii) Report.--Not later than April 1, 1995, 
                        the Secretary shall transmit to the Committee 
                        on Ways and Means of the House of 
                        Representatives and the Committee on Finance of 
                        the Senate a report setting forth the findings 
                        of the Secretary based on such Study. Such 
                        report shall include such recommendations for 
                        administrative or legislative changes as the 
                        Secretary considers appropriate.
            (2) Increased reliance on professional representative 
        payees.--
                    (A) Preference required for organizational 
                representative payees.--Section 205(j)(2)(C) of such 
                Act (42 U.S.C. 405(j)(2)(C)) is amended by adding at 
                the end the following new clause:
    ``(v) In the case of an individual entitled to benefits based on 
disability, if alcoholism or drug addiction is a contributing factor 
material to the Secretary's determination that the individual is under 
a disability, when selecting such individual's representative payee, 
preference shall be given to--
            ``(I) a community-based nonprofit social service agency 
        licensed or bonded by the State,
            ``(II) a State or local government agency whose mission is 
        to carry out income maintenance, social service, or health 
        care-related activities, or
            ``(III) a State or local government agency with fiduciary 
        responsibilities,
(or a designee of such an agency if the Secretary deems it 
appropriate), unless the Secretary determines that selection of such an 
agency would not be appropriate.''.
                    (B) Availability of public agencies and other 
                qualified organizations to serve as representative 
                payees.--Section 205(j)(4) of such Act (42 U.S.C. 
                405(j)(4)) is amended--
                            (i) in subparagraph (A)--
                                    (I) by striking ``exceed the lesser 
                                of--'' and inserting ``exceed--''; and
                                    (II) by striking clauses (i) and 
                                (ii) and inserting the following:
                            ``(i) in any case in which an individual is 
                        entitled to benefits based on disability and 
                        alcoholism or drug addiction is a contributing 
                        factor material to the Secretary's 
                        determination that the individual is under a 
                        disability, 10 percent of the monthly benefit 
                        involved, or
                            ``(ii) in any other case, the lesser of--
                                    ``(I) 10 percent of the monthly 
                                benefit involved, or
                                    ``(II) $25.00 per month.'';
                            (ii) in subparagraph (B)--
                                    (I) by inserting ``State or local 
                                government agency whose mission is to 
                                carry out income maintenance, social 
                                service, or health care-related 
                                activities, any State or local 
                                government agency with fiduciary 
                                responsibilities, or any'' after 
                                ``means any'';
                                    (II) by striking ``representative 
                                payee and which,'' and inserting 
                                ``representative payee, if such 
                                agency,'';
                                    (III) by striking ``, and'' at the 
                                end of clause (ii) and inserting a 
                                period; and
                                    (IV) by striking clause (iii); and
                            (iii) by striking subparagraph (D), 
                        effective July 1, 1994.
                    (C) Definition.--Section 205(j) of such Act (42 
                U.S.C. 405(j)) is amended by adding at the end the 
                following new paragraph:
    ``(7) For purposes of this subsection, the term `benefit based on 
disability' of an individual means a disability insurance benefit of 
such individual under section 223 or a child's, widow's, or widower's 
insurance benefit of such individual under section 202 based on such 
individual's disability.''.
            (3) Nonpayment or termination of benefits.--
                    (A) In general.--Section 225 of such Act (42 U.S.C. 
                425) is amended--
                            (i) by striking the heading and inserting 
                        the following:

      ``additional rules relating to benefits based on disability

                      ``Suspension of Benefits'';

                            (ii) by inserting before subsection (b) the 
                        following new heading:

         ``Continued Payments During Rehabilitation Program'';

                        and
                            (iii) by adding at the end the following 
                        new subsection:

  ``Nonpayment or Termination of Benefits Where Entitlement Involves 
                      Alcoholism or Drug Addiction

    ``(c)(1)(A) Notwithstanding any other provision of this title, in 
the case of any individual entitled to benefits based on disability, if 
alcoholism or drug addiction is a contributing factor material to the 
Secretary's determination that such individual is under a disability 
and such individual is determined by the Secretary not to be in 
compliance with the requirements of this subsection for a month, such 
benefits shall be suspended for a period commencing with such month and 
ending with the month preceding the first month, after the 
determination of noncompliance, in which such individual demonstrates 
that he or she has reestablished and maintained compliance with such 
requirements for the applicable period specified in paragraph (3).
    ``(B) For purposes of this subsection, in the case of an individual 
who is entitled to benefits based on disability for the first month 
ending after 180 days after the date of the enactment of the Social 
Security Administrative Reform Act of 1994, if such individual has a 
primary diagnosis of alcoholism or drug addiction, such alcoholism or 
drug addiction shall be treated as a contributing factor material to 
the Secretary's determination of disability.
    ``(2)(A) An individual described in paragraph (1) is in compliance 
with the requirements of this subsection for a month if such individual 
in such month undergoes any medical or psychological treatment that may 
be appropriate, for such individual's condition diagnosed as substance 
abuse or alcohol abuse and for the stage of such individual's 
rehabilitation, at an institution or facility approved for purposes of 
this subsection by the Secretary, and complies in such month with the 
terms, conditions, and requirements of such treatment and with 
requirements imposed by the Secretary under paragraph (6).
    ``(B) An individual described in paragraph (1) shall not be 
determined to be not in compliance with the requirements of this 
subsection for a month if access by such individual to such treatment 
is not reasonably available for that month, as determined under 
regulations of the Secretary.
    ``(3) The applicable period specified in this paragraph is--
            ``(A) 2 consecutive months, in the case of a first 
        determination that an individual is not in compliance with the 
        requirements of this subsection,
            ``(B) 3 consecutive months, in the case of the second such 
        determination with respect to the individual, and
            ``(C) 6 consecutive months, in the case of the third or 
        subsequent such determination with respect to the individual.
    ``(4) In any case in which an individual's benefit is suspended for 
a period of 12 consecutive months for failure to comply with treatment 
described in paragraph (2) of this subsection, the month following such 
period shall be deemed, for purposes of section 223(a)(1) or subsection 
(d)(1)(G)(i), (e)(1), or (f)(1) of section 202 (as applicable), as the 
termination month with respect to such entitlement.
    ``(5)(A) Subject to subparagraph (B), monthly insurance benefits 
under this title which would be payable to any individual (other than 
the disabled individual to whom benefits are not payable by reason of 
this subsection) on the basis of the wages and self-employment income 
of such disabled individual but for the provisions of paragraph (1) or 
(4), shall be payable as though such disabled individual were receiving 
such benefits which are not payable under this subsection (and, in the 
case of a disabled individual whose entitlement is terminated under 
paragraph (4), as though such disabled individual's entitlement were 
not terminated).
    ``(B) If the monthly insurance benefits of a disabled individual 
referred to in subparagraph (A) are not payable by reason of 
termination of entitlement under paragraph (4), monthly insurance 
benefits which are payable to any other individual on the basis of the 
wages and self-employment income of such disabled individual pursuant 
to subparagraph (A) shall not be payable for any month after 2 years 
after the last month of such entitlement.
    ``(6)(A) The Secretary shall provide for the monitoring and testing 
of all individuals who are receiving benefits under this title and who 
as a condition of payment of such benefits are required to be 
undergoing treatment and complying with the terms, conditions, and 
requirements thereof as described in paragraph (2)(A), in order to 
assure such compliance and to determine the extent to which the 
imposition of such requirements is contributing to the achievement of 
the purposes of this title. The Secretary shall annually submit to the 
Congress a full and complete report on the Secretary's activities under 
this paragraph. Each such annual report shall include the number and 
percentage of such individuals who did not receive regular drug testing 
during the year covered by the report.
    ``(B) The Secretary, in consultation with drug and alcohol 
treatment professionals, shall issue regulations--
            ``(i) defining appropriate treatment for alcoholics and 
        drug addicts who are subject to required medical or 
        psychological treatment under this subsection, and
            ``(ii) establishing guidelines to be used to review and 
        evaluate their compliance, including measures of the progress 
        of participants in such programs.
    ``(C)(i) For purposes of carrying out the requirements of 
subparagraphs (A) and (B), the Secretary shall establish in each State 
a referral and monitoring agency for such State.
    ``(ii) Each referral and monitoring agency for a State shall--
            ``(I) identify appropriate placements, for individuals 
        residing in such State who are entitled to benefits based on 
        disability and with respect to whom alcoholism or drug 
        addiction is a contributing factor material to the Secretary's 
        determination that they are under a disability, where they may 
        obtain treatment described in paragraph (2)(A),
            ``(II) refer such individuals to such placements for such 
        treatment, and
            ``(III) monitor compliance with the requirements of 
        paragraph (2)(A) by individuals who are referred by the agency 
        to such placements and promptly report failures to comply to 
        the Secretary.
    ``(7) In the case of any individual who is entitled to a benefit 
based on disability for any month, if alcoholism or drug addiction is a 
contributing factor material to the Secretary's determination that the 
individual is under a disability, payment of any past-due monthly 
insurance benefits under this title to which such individual is 
entitled shall be made in any month only to the extent that the sum 
of--
            ``(A) the amount of such past-due benefit paid in such 
        month, and
            ``(B) the amount of any benefit for the preceding month 
        under such current entitlement which is payable in such month,
does not exceed 200 percent of the amount of such benefit for the 
preceding month.
    ``(8) In the case of any individual entitled to benefits based on 
disability, if alcoholism or drug addiction is a contributing factor 
material to the Secretary's determination that such individual is under 
a disability, the month following the 36-month period beginning with 
such individual's first month of entitlement shall be deemed, for 
purposes of section 223(a)(1) or subsection (d)(1)(G)(i), (e)(1), or 
(f)(1) of section 202 (as applicable), as the termination month with 
respect to such entitlement, and such individual shall be deemed not to 
be entitled to any past-due benefits under such entitlement remaining 
unpaid as of the end of such 36-month period. Such individual may not 
be entitled to benefits based on disability for any month after such 
36-month period if, with respect to such entitlement, alcoholism or 
drug addition is a contributing factor material to the Secretary's 
determination that such individual is under a disability.
    ``(9) For purposes of this subsection, the term `benefit based on 
disability' of an individual means a disability insurance benefit of 
such individual under section 223 or a child's, widow's, or widower's 
insurance benefit of such individual under section 202 based on the 
disability of such individual.''.
                    (B) Preservation of medicare benefits.--Section 226 
                of such Act (42 U.S.C. 426) is amended by adding at the 
                end the following:
    ``(i) For purposes of this section, each person whose benefit for 
any month is not payable by reason of paragraph (1) of section 225(c) 
(and is not terminated by reason of paragraph (4) or (8) of section 
225(c)) shall be treated as entitled to such benefit for such month if 
such person would be entitled to such benefit for such month in the 
absence of such section.''.paragraph (other than paragraphs (6)(C) and 
(8) of section 225(c) of the Social Security Act added by this 
paragraph) shall apply with respect to benefits based on disability (as 
defined in section 225(c)(9) of the Social Security Act, added by this 
section) of individuals becoming entitled to such benefits for months 
beginning after 180 days after the date of the enactment of this Act. 
Section 225(c)(6)(C) of the Social Security Act shall take effect 180 
days after the date of the enactment of this Act. Section 225(c)(8) of 
the Social Security Act (added by this section) shall apply with 
respect to benefits for months ending after 180 days after the date of 
the enactment of this Act, and, for purposes of such section 225(c)(8), 
in the case of any individual entitled to benefits based on disability 
(as so defined) for the first month ending after 180 days after the 
date of the enactment of this Act, such month shall be treated as such 
individual's first month of entitlement to such benefits.
            (4) Irrelevance of legality of services performed in 
        determining substantial gainful activity.--
                    (A) In general.--Section 223(d)(4) of such Act (42 
                U.S.C. 423(d)(4)) is amended--
                            (i) by inserting ``(A)'' after ``(4)''; and
                            (ii) by adding at the end the following new 
                        subparagraph:
    ``(B) In determining under subparagraph (A) when services performed 
or earnings derived from services demonstrate an individual's ability 
to engage in substantial gainful activity, the Secretary apply the 
criteria described in subparagraph (A) with respect to services 
performed by any individual without regard to the legality of such 
services.''.
                    (B) Effective date.--The amendments made by this 
                paragraph shall take effect on the date of the 
                enactment of this Act.
    (b) Amendments Relating to Supplemental Security Income Benefits 
Under Title XVI of the Social Security Act.--
            (1) Required payment of benefits to representative 
        payees.--
                    (A) In general.--Section 1631(a)(2)(A) of the 
                Social Security Act (42 U.S.C. 1383(a)(2)(A)) is 
                amended--
                            (i) in clause (ii), by adding at the end 
                        the following: ``In the case of an individual 
                        entitled to benefits under this title by reason 
                        of disability, if alcoholism or drug addiction 
                        is a contributing factor material to the 
                        Secretary's determination that the individual 
                        is disabled, the payment of such benefits to a 
                        representative payee shall be deemed to serve 
                        the interest of such individual under this 
                        title.''; and
                            (ii) in clause (iii), by striking ``to the 
                        individual or eligible spouse or to an 
                        alternative representative payee of the 
                        individual or eligible spouse'' and inserting 
                        ``to an alternative representative payee of the 
                        individual or eligible spouse or, if the 
                        interest of the individual under this title 
                        would be served thereby, to the individual or 
                        eligible spouse''.
                    (B) Conforming amendment.--Section 
                1631(a)(2)(B)(viii)(II) of such Act (42 U.S.C. 
                1383(a)(2)(B)(viii)(II)) is amended by striking ``15 
                years'' and all that follows and inserting ``of 15 
                years, or (if alcoholism or drug addiction is a 
                contributing factor material to the Secretary's 
                determination that the individual is disabled) is 
                entitled to benefits under this title by reason of 
                disability.''.
                    (C) Effective date.--The amendments made by 
                subparagraphs (A) and (B) shall apply with respect to 
                benefits for months beginning after 180 days after the 
                date of the enactment of this Act.
            (2) Increased reliance on professional representative 
        payees.--
                    (A) Preference required for organizational 
                representative payees.--Section 1631(a)(2)(B) of such 
                Act (42 U.S.C. 1383(a)(2)(B)) is amended--
                            (i) by redesignating clauses (vii) through 
                        (xii) as clauses (viii) through (xiii), 
                        respectively;
                            (ii) by inserting after clause (vi) the 
                        following:
    ``(vii) In the case of an individual entitled to benefits under 
this title by reason of disability, if alcoholism or drug addiction is 
a contributing factor material to the Secretary's determination that 
the individual is disabled, when selecting such individual's 
representative payee, preference shall be given to--
            ``(I) a community-based nonprofit social service agency 
        licensed or bonded by the State;
            ``(II) a State or local government agency whose mission is 
        to carry out income maintenance, social service, or health 
        care-related activities; or
            ``(III) a State or local government agency with fiduciary 
        responsibilities,
(or a designee of such an agency if the Secretary deems it 
appropriate), unless the Secretary determines that selection of such an 
agency would not be appropriate.'';
                            (iii) in clause (viii) (as so 
                        redesignated), by striking ``clause (viii)'' 
                        and inserting ``clause (ix)'';
                            (iv) in clause (ix) (as so redesignated), 
                        by striking ``(vii)'' and inserting ``(viii)'';
                            (v) in clause (xiii) (as so redesignated)--
                                    (I) by striking ``(xi)'' and 
                                inserting ``(xii)''; and
                                    (II) by striking ``(x)'' and 
                                inserting ``(xi)''.
                    (B) Availability of public agencies and other 
                qualified organizations to serve as representative 
                payees.--Section 1631(a)(2)(D) of such Act (42 U.S.C. 
                1383(a)(2)(D)) is amended--
                            (i) in clause (i)--
                                    (I) by striking ``exceed the lesser 
                                of--'' and inserting ``exceed--''; and
                                    (II) by striking subclauses (I) and 
                                (II) and inserting the following:
            ``(I) in any case in which an individual is entitled to 
        benefits under this title by reason of disability and 
        alcoholism or drug addiction is a contributing factor material 
        to the Secretary's determination that the individual is 
        disabled, 10 percent of the monthly benefit involved, or
            ``(II) in any other case, the lesser of--
                    ``(aa) 10 percent of the monthly benefit involved, 
                or
                    ``(bb) $25.00 per month.'';
                            (ii) in clause (ii)--
                                    (I) by inserting ``State or local 
                                government agency whose mission is to 
                                carry out income maintenance, social 
                                service, or health care-related 
                                activities, any State or local 
                                government agency with fiduciary 
                                responsibilities, or any'' after 
                                ``means any'';
                                    (II) by inserting a comma after 
                                ``service agency'';
                                    (III) by adding ``and'' at the end 
                                of subclause (I); and
                                    (IV) in subclause (II)--
                                            (aa) by adding ``and'' at 
                                        the end of item (aa);
                                            (bb) by striking ``; and'' 
                                        at the end of item (bb) and 
                                        inserting a period; and
                                            (cc) by striking item (cc); 
                                        and
                            (iii) by striking clause (iv), effective 
                        July 1, 1994.
            (3) Nonpayment or termination of benefits.--
                    (A) In general.--Section 1611(e)(3) of such Act (42 
                U.S.C. 1382(e)(3)), is amended by redesignating 
                subparagraph (B) as subparagraph (C) and by inserting 
                after subparagraph (A) the following:
    ``(B)(i) Notwithstanding any other provision of this title, in the 
case of any individual entitled to benefits under this title solely by 
reason of disability, if alcoholism or drug addiction is a contributing 
factor material to the Secretary's determination that such individual 
is disabled and such individual is determined by the Secretary not to 
be in compliance with the requirements of this subparagraph for a 
month, such benefits shall be suspended for a period commencing with 
such month and ending with the month preceding the first month, after 
the determination of noncompliance, in which such individual 
demonstrates that he or she has reestablished and maintained compliance 
with such requirements for the applicable period specified in clause 
(iii).
    ``(ii)(I) An individual described in clause (i) is in compliance 
with the requirements of this subparagraph for a month if the 
individual in such month undergoes any medical or psychological 
treatment that may be appropriate, for the individual's condition 
diagnosed as substance abuse or alcohol abuse and for the stage of the 
individual's rehabilitation, at an institution or facility approved for 
purposes of this subparagraph by the Secretary, and complies in such 
month with the terms, conditions, and requirements of such treatment 
and with requirements imposed by the Secretary under subparagraph (C).
    ``(II) An individual described in clause (i) shall not be 
determined to be not in compliance with the requirements of this 
subparagraph for a month if access by such individual to such treatment 
is not reasonably available for the month, as determined under 
regulations of the Secretary.
    ``(iii) The applicable period specified in this clause is--
            ``(I) 2 consecutive months, in the case of a 1st 
        determination that an individual is not in compliance with the 
        requirements of this subparagraph;
            ``(II) 3 consecutive months, in the case of the 2nd such 
        determination with respect to the individual; or
            ``(III) 6 consecutive months, in the case of the 3rd or 
        subsequent such determination with respect to the individual.
    ``(iv) An individual shall not be an eligible individual for 
purposes of this title for the 12-month period that begins with the end 
of any period of 12 consecutive months for which the benefits of the 
individual under this title have been suspended by reason of this 
subparagraph.
    ``(v) In the case of any individual entitled to benefits under this 
title by reason of disability, if alcoholism or drug addiction is a 
contributing factor material to the Secretary's determination that such 
individual is disabled, such individual may not be entitled to such 
benefits by reason of disability (or any past-due benefits under such 
entitlement) for any month after the 36-month period beginning with 
such individual's first month of such entitlement, notwithstanding 
section 1619(a).
    ``(vi)(I) The Secretary shall not, in a month, pay to an individual 
described in clause (i) benefits under this title the payment of which 
is past due, in an amount that exceeds the amount of benefits under 
this title which are payable to the individual for the month and the 
payment of which is not past due.
    ``(II) As used in subclause (I) of this clause, the term `benefits 
under this title' includes supplementary payments of the type described 
in section 1616(a) and payments pursuant to an agreement entered into 
under section 212(a) of Public Law 93-66.''.
                    (B) Referral, monitoring, and treatment.--Section 
                1611(e)(3)(C) of such Act (42 U.S.C. 1382(e)(3)(C)), as 
                so designated by the amendment made by subparagraph (A) 
                of this paragraph, is amended--
                            (i) by adding at the end the following: 
                        ``Each such annual report shall include the 
                        number and percentage of such individuals who 
                        did not receive regular drug testing during the 
                        year covered by the report.'';
                            (ii) by inserting ``(i)'' after ``(C)''; 
                        and
                            (iii) by adding after and below the end 
                        following:
    ``(ii) The Secretary, in consultation with drug and alcohol 
treatment professionals, shall issue regulations--
            ``(I) defining appropriate treatment for alcoholics and 
        drug addicts who are subject to required medical or 
        psychological treatment under this subparagraph; and
            ``(II) establishing guidelines to be used to review and 
        evaluate their compliance, including measures of the progress 
        of participants in such programs.
    ``(iii)(I) For purposes of carrying out the requirements of clauses 
(i) and (ii), the Secretary shall establish in each State a referral 
and monitoring agency for the State.
    ``(II) Each referral and monitoring agency for a State shall--
            ``(aa) identify appropriate placements, for individuals 
        residing in the State who are entitled to benefits under this 
        title by reason of disability and with respect to whom 
        alcoholism or drug addiction is a contributing factor material 
        to the Secretary's determination that they are disabled, where 
        they may obtain treatment described in subparagraph (B)(ii)(I);
            ``(bb) refer such individuals to such placements for such 
        treatment; and
            ``(cc) monitor compliance with the requirements of 
        subparagraph (B) by individuals who are referred by the agency 
        to such placements, and promptly report to the Secretary any 
        failure to comply with such requirements.''.
                    (C) Preservation of medicaid benefits.--Section 
                1634 of such Act (42 U.S.C. 13283c) is amended by 
                adding at the end the following:
    ``(e) Each person to whom benefits under this title by reason of 
disability are not payable for any month solely by reason of section 
1611(e)(3)(B) shall be treated, for purposes of title XIX, as receiving 
benefits under this title for such month.''.
                    (D) Conforming amendments.--Section 1611(e)(3) of 
                such Act (42 U.S.C. 1382(e)(3)), as amended by 
                subparagraphs (A) and (B) of this paragraph, is 
                amended--
                            (i) in subparagraph (A), by striking 
                        ``(B)'' and inserting ``(C)''; and
                            (ii) in subparagraph (C), by inserting ``or 
                        (B)'' after ``(A)''.
                    (E) Effective date.--
                            (i) In general.--Except as provided in 
                        clauses (ii) and (iii), the amendments made by 
                        this paragraph shall apply with respect to 
                        benefits for months beginning after 180 days 
                        after the date of the enactment of this Act.
                            (ii) Time limitation on benefits.--Section 
                        1611(e)(3)(B)(v) of the Social Security Act (as 
                        added by the amendment made by subparagraph (A) 
                        of this paragraph) shall apply with respect to 
                        benefits for months ending after 180 days after 
                        the date of the enactment of this Act, and, for 
                        purposes of such section, in the case of any 
                        individual entitled to benefits by reason of 
                        disability for the first month ending after 180 
                        days after the date of the enactment of this 
                        Act, such month shall be treated as such 
                        individual's first month of entitlement to such 
                        benefits.
                            (iii) Establishment of referral and 
                        monitoring agencies.--Section 
                        1611(e)(3)(C)(iii) of the Social Security Act 
                        (as added by the amendment made by subparagraph 
                        (B)(iii) of this paragraph) shall take effect 
                        180 days after the date of the enactment of 
                        this Act.
            (4) Irrelevance of legality of substantial gainful 
        activity.--
                    (A) In general.--Section 1614(a)(3)(D) of such Act 
                (42 U.S.C. 1382c(a)(3)(D)) is amended by adding at the 
                end the following: ``The Secretary shall make 
                determinations under this title with respect to 
                substantial gainful activity, without regard to the 
                legality of the activity.''.
                    (B) Effective date.--The amendment made by 
                subparagraph (A) shall take effect on the date of the 
                enactment of this Act.
    (c) Effective Date.--The amendments made by the preceding 
provisions of this section shall apply to benefits payable for months 
beginning 180 or more days after the date of the enactment of this Act.
    (d) Demonstration Projects.--
            (1) In general.--The Secretary of Health and Human Services 
        shall develop and carry out demonstration projects designed to 
        explore innovative referral, monitoring, and treatment 
        approaches with respect to--
                    (A) individuals who are entitled to disability 
                insurance benefits or child's, widow's, or widower's 
                insurance benefits based on disability under title II 
                of the Social Security Act, and
                    (B) individuals who are eligible for supplemental 
                security income benefits under title XVI of such Act 
                based solely on disability,
        in cases in which alcoholism or drug addiction is a 
        contributing factor material to the Secretary's determination 
        that individuals are under a disability.
            (2) Scope.--The demonstration projects developed under 
        paragraph (1) shall be of sufficient scope and shall be carried 
        out on a wide enough scale to permit a thorough evaluation of 
        the alternative approaches under consideration while giving 
        assurance that the results derived from the projects will 
        obtain generally in the operation of the programs involved 
        without committing such programs to the adoption of any 
        particular system either locally or nationally.
            (3) Final report.--The Secretary shall submit to the 
        Committee on Ways and Means of the House of Representatives and 
        the Committee on Finance of the Senate no later than December 
        31, 1997, a final report on the demonstration projects carried 
        out under this subsection, together with any related data and 
        materials which the Secretary may consider appropriate. The 
        authority under this section shall terminate upon the 
        transmittal of such final report.

SEC. 202. ISSUANCE OF PHYSICAL DOCUMENTS IN THE FORM OF BONDS, NOTES, 
              OR CERTIFICATES TO THE SOCIAL SECURITY TRUST FUNDS.

    (a) Requirement that Obligations Issued to the OASDI Trust Funds Be 
Evidenced by Paper Instruments in the Form of Bonds, Notes, or 
Certificates of Indebtedness Setting Forth Their Terms.--Section 201(d) 
of the Social Security Act (42 U.S.C. 401(d)) is amended by inserting 
after the fifth sentence the following new sentence: ``Each obligation 
issued for purchase by the Trust Funds under this subsection shall be 
evidenced by a paper instrument in the form of a bond, note, or 
certificate of indebtedness issued by the Secretary of the Treasury 
setting forth the principal amount, date of maturity, and interest rate 
of the obligation, and stating on its face that the obligation shall be 
incontestable in the hands of the Trust Fund to which it is issued, 
that the obligation is supported by the full faith and credit of the 
United States, and that the United States is pledged to the payment of 
the obligation with respect to both principal and interest.''.
    (b) Payment to the OASDI Trust Funds from the General Fund of the 
Treasury of Interest on Obligations, and of Proceeds from the Sale or 
Redemption of Obligations, Required to Be in the Form of Checks.--
Section 201(f) of such Act (42 U.S.C. 401(f)) is amended by adding at 
the end the following new sentence: ``Payment from the general fund of 
the the Treasury to either of the Trust Funds of any such interest or 
proceeds shall be in the form of paper checks drawn on such general 
fund to the order of such Trust Fund.''.
    (c) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply with respect to obligations issued, and payments made, 
        after 60 days after the date of the enactment of this Act.
            (2) Treatment of outstanding obligations.--Not later than 
        60 days after the date of the enactment of this Act, the 
        Secretary of the Treasury shall issue to the Federal Old-Age 
        and Survivors Insurance Trust Fund or the Federal Disability 
        Insurance Trust Fund, as applicable, a paper instrument, in the 
        form of a bond, note, or certificate of indebtedness, for each 
        obligation which has been issued to the Trust Fund under 
        section 201(d) of the Social Security Act and which is 
        outstanding as of such date. Each such document shall set forth 
        the principal amount, date of maturity, and interest rate of 
        the obligation, and shall state on its face that the obligation 
        shall be incontestable in the hands of the Trust Fund to which 
        it was issued, that the obligation is supported by the full 
        faith and credit of the United States, and that the United 
        States is pledged to the payment of the obligation with respect 
        to both principal and interest.

SEC. 203. EXPLICIT REQUIREMENTS FOR MAINTENANCE OF TELEPHONE ACCESS TO 
              LOCAL OFFICES OF THE SOCIAL SECURITY ADMINISTRATION.

    (a) Maintenance of Service to Local Offices.--
            (1) In general.--Section 5110(a) of the Omnibus Budget 
        Reconciliation Act of 1990 (104 Stat. 1388-272) is amended by 
        adding at the end the following new sentence: ``In carrying out 
        the requirements of the preceding sentence, the Secretary shall 
        reestablish and maintain in service at least the same number of 
        telephone lines to each such local office as was in place as of 
        such date, including telephone sets for connections to such 
        lines.''.
            (2) Effective date.--The Secretary of Health and Human 
        Services shall ensure that the requirements of the amendment 
        made by paragraph (1) are carried out no later than 90 days 
        after the date of the enactment of this Act.
            (3) GAO report.--The Comptroller General of the United 
        States shall make an independent determination of the number of 
        telephone lines to each local office of the Social Security 
        Administration which are in place as of 90 days after the 
        enactment of this Act and shall report his findings to the 
        Committee on Ways and Means of the House of Representatives and 
        the Committee on Finance of the Senate no later than 150 days 
        after the date of the enactment of this Act.
    (b) Maintenance of Toll-Free Telephone Number Service.--The 
Secretary of Health and Human Services shall ensure that toll-free 
telephone service provided by the Social Security Administration is 
maintained at a level which is at least equal to that in effect on the 
date of the enactment of this Act.

SEC. 204. EXPANSION OF STATE OPTION TO EXCLUDE SERVICE OF ELECTION 
              OFFICIALS OR ELECTION WORKERS FROM COVERAGE.

    (a) Limitation on Mandatory Coverage of State Election Officials 
and Election Workers Without State Retirement System.--
            (1) Amendment to social security act.--Section 
        210(a)(7)(F)(iv) of the Social Security Act (42 U.S.C. 
        410(a)(7)(F)(iv)) (as amended by section 11332(a) of the 
        Omnibus Budget Reconciliation Act of 1990) is amended by 
        striking ``$100'' and inserting ``$1,000 with respect to 
        service performed during 1995, and the adjusted amount 
        determined under section 218(c)(8)(B) for any subsequent year 
        with respect to service performed during such subsequent 
        year''.
            (2) Amendment to fica.--Section 3121(b)(7)(F)(iv) of the 
        Internal Revenue Code of 1986 (as amended by section 11332(b) 
        of the Omnibus Budget Reconciliation Act of 1990) is amended by 
        striking ``$100'' and inserting ``$1,000 with respect to 
        service performed during 1995, and the adjusted amount 
        determined under section 218(c)(8)(B) of the Social Security 
        Act for any subsequent year with respect to service performed 
        during such subsequent year''.
    (b) Conforming Amendments Relating to Medicare Qualified Government 
Employment.--
            (1) Amendment to social security act.--Section 210(p)(2)(E) 
        of the Social Security Act (42 U.S.C. 410(p)(2)(E)) is amended 
        by striking ``$100'' and inserting ``$1,000 with respect to 
        service performed during 1995, and the adjusted amount 
        determined under section 218(c)(8)(B) for any subsequent year 
        with respect to service performed during such subsequent 
        year''.
            (2) Amendment to fica.--Section 3121(u)(2)(B)(ii)(V) of the 
        Internal Revenue Code of 1986 is amended by striking ``$100'' 
        and inserting ``$1,000 with respect to service performed during 
        1995, and the adjusted amount determined under section 
        218(c)(8)(B) of the Social Security Act for any subsequent year 
        with respect to service performed during such subsequent 
        year''.
    (c) Authority for States To Modify Coverage Agreements With Respect 
to Election Officials and Election Workers.--Section 218(c)(8) of the 
Social Security Act (42 U.S.C. 418(c)(8)) is amended--
            (1) by striking ``on or after January 1, 1968,'' and 
        inserting ``at any time'';
            (2) by striking ``$100'' and inserting ``$1,000 with 
        respect to service performed during 1995, and the adjusted 
        amount determined under subparagraph (B) for any subsequent 
        year with respect to service performed during such subsequent 
        year''; and
            (3) by striking the last sentence and inserting the 
        following new sentence: ``Any modification of an agreement 
        pursuant to this paragraph shall be effective with respect to 
        services performed in and after the calendar year in which the 
        modification is mailed or delivered by other means to the 
        Secretary.''.
    (d) Indexation of Exempt Amount.--Section 218(c)(8) of such Act (as 
amended by subsection (c)) is further amended--
            (1) by inserting ``(A)'' after ``(8)''; and
            (2) by adding at the end the following new subparagraph:
    ``(B) For each year after 1995, the Secretary shall adjust the 
amount referred to in subparagraph (A) at the same time and in the same 
manner as is provided under section 215(a)(1)(B)(ii) with respect to 
the amounts referred to in section 215(a)(1)(B)(i), except that--
            ``(i) for purposes of this subparagraph, 1993 shall be 
        substituted for the calendar year referred to in section 
        215(a)(1)(B)(ii)(II), and
            ``(ii) such amount as so adjusted, if not a multiple of 
        $100, shall be rounded to the next higher multiple of $100 
        where such amount is a multiple of $50 and to the nearest 
        multiple of $100 in any other case.
The Secretary shall determine and publish in the Federal Register each 
adjusted amount determined under this subparagraph not later than 
November 1 preceding the year for which the adjustment is made.''.
    (e) Effective Date.--The amendments made by subsections (a), (b), 
and (c) shall apply with respect to service performed on or after 
January 1, 1995.

SEC. 205. USE OF SOCIAL SECURITY NUMBERS BY STATES AND LOCAL 
              GOVERNMENTS AND FEDERAL DISTRICT COURTS FOR JURY 
              SELECTION PURPOSES.

    (a) In General.--Section 205(c)(2) of the Social Security Act (42 
U.S.C. 405(c)(2)) is amended--
            (1) in subparagraph (B)(i), by striking ``(E)'' in the 
        matter preceding subclause (I) and inserting ``(F)'';
            (2) by redesignating subparagraphs (E) and (F) as 
        subparagraphs (F) and (G), respectively; and
            (3) by inserting after subparagraph (D) the following:
    ``(E)(i) It is the policy of the United States that--
            ``(I) any State (or any political subdivision of a State) 
        may utilize the social security account numbers issued by the 
        Secretary for the additional purposes described in clause (ii) 
        if such numbers have been collected and are otherwise utilized 
        by such State (or political subdivision) in accordance with 
        applicable law, and
            ``(II) any district court of the United States may use, for 
        such additional purposes, any such social security account 
        numbers which have been so collected and are so utilized by any 
        State.
    ``(ii) The additional purposes described in this clause are the 
following:
            ``(I) Identifying duplicate names of individuals on master 
        lists used for jury selection purposes.
            ``(II) Identifying on such master lists those individuals 
        who are ineligible to serve on a jury by reason of their 
        conviction of a felony.
    ``(iii) To the extent that any provision of Federal law enacted 
before the date of the enactment of this subparagraph is inconsistent 
with the policy set forth in clause (i), such provision shall, on and 
after that date, be null, void, and of no effect.
    ``(iv) For purposes of this subparagraph, the term `State' has the 
meaning such term has in subparagraph (D).''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date of the enactment of this Act.

SEC. 206. AUTHORIZATION FOR ALL STATES TO EXTEND COVERAGE TO STATE AND 
              LOCAL POLICEMEN AND FIREMEN UNDER EXISTING COVERAGE 
              AGREEMENTS.

    (a) In General.--Section 218(l) of the Social Security Act (42 
U.S.C. 418(l)) is amended--
            (1) in paragraph (1), by striking ``(1)'' after ``(l)'', 
        and by striking ``the State of'' and all that follows through 
        ``prior to the date of enactment of this subsection'' and 
        inserting ``a State entered into pursuant to this section''; 
        and
            (2) by striking paragraph (2).
    (b) Conforming Amendment.--Section 218(d)(8)(D) of such Act (42 
U.S.C. 418(d)(8)(D)) is amended by striking ``agreements with the 
States named in'' and inserting ``State agreements modified as provided 
in''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to modifications filed by States after the date of 
the enactment of this Act.

SEC. 207. LIMITED EXEMPTION FOR CANADIAN MINISTERS FROM CERTAIN SELF-
              EMPLOYMENT TAX LIABILITY.

    (a) In General.--Notwithstanding any other provision of law, if--
            (1) an individual performed services described in section 
        1402(c)(4) of the Internal Revenue Code of 1986 which are 
        subject to tax under section 1401 of such Code,
            (2) such services were performed in Canada at a time when 
        no agreement between the United States and Canada pursuant to 
        section 233 of the Social Security Act was in effect, and
            (3) such individual was required to pay contributions on 
        the earnings from such services under the social insurance 
        system of Canada,
then such individual may file a certificate under this section in such 
form and manner, and with such official, as may be prescribed in 
regulations issued under chapter 2 of such Code. Upon the filing of 
such certificate, notwithstanding any judgment which has been entered 
to the contrary, such individual shall be exempt from payment of such 
tax with respect to services described in paragraphs (1) and (2) and 
from any penalties or interest for failure to pay such tax or to file a 
self-employment tax return as required under section 6017 of such Code.
    (b) Period for Filing.--A certificate referred to in subsection (a) 
may be filed only during the 180-day period commencing with the date on 
which the regulations referred to in subsection (a) are issued.
    (c) Taxable Years Affected by Certificate.--A certificate referred 
to in subsection (a) shall be effective for taxable years ending after 
December 31, 1978, and before January 1, 1985.
    (d) Restriction on Crediting of Exempt Self-Employment Income.--In 
any case in which an individual is exempt under this section from 
paying a tax imposed under section 1401 of the Internal Revenue Code of 
1986, any income on which such tax would have been imposed but for such 
exemption shall not constitute self-employment income under section 
211(b) of the Social Security Act (42 U.S.C. 411(b)), and, if such 
individual's primary insurance amount has been determined under section 
215 of such Act (42 U.S.C. 415), notwithstanding section 215(f)(1) of 
such Act, the Secretary of Health and Human Services shall recompute 
such primary insurance amount so as to take into account the provisions 
of this subsection. The recomputation under this subsection shall be 
effective with respect to benefits for months following approval of the 
certificate of exemption.

SEC. 208. EXCLUSION OF TOTALIZATION BENEFITS FROM THE APPLICATION OF 
              THE WINDFALL ELIMINATION PROVISION.

    (a) In General.--Section 215(a)(7) of the Social Security Act (42 
U.S.C. 415(a)(7)) is amended--
            (1) in subparagraph (A), by striking ``but excluding'' and 
        all that follows through ``1937'' and inserting ``but excluding 
        (I) a payment under the Railroad Retirement Act of 1974 or 
        1937, and (II) a payment by a social security system of a 
        foreign country based on an agreement concluded between the 
        United States and such foreign country pursuant to section 
        233''; and
            (2) in subparagraph (E), by inserting after ``in the case 
        of an individual'' the following: ``whose eligibility for old-
        age or disability insurance benefits is based on an agreement 
        concluded pursuant to section 233 or an individual''.
    (b) Conforming Amendment Relating to Benefits Under 1939 Act.--
Section 215(d)(3) of such Act (42 U.S.C. 415(d)(3)) is amended by 
striking ``but excluding'' and all that follows through ``1937'' and 
inserting ``but excluding (I) a payment under the Railroad Retirement 
Act of 1974 or 1937, and (II) a payment by a social security system of 
a foreign country based on an agreement concluded between the United 
States and such foreign country pursuant to section 233''.
    (c) Effective Date.--The amendments made by this section shall 
apply (notwithstanding section 215(f)(1) of the Social Security Act (42 
U.S.C. 415(f)(1))) with respect to benefits payable for months after 
January 1995.

SEC. 209. EXCLUSION OF MILITARY RESERVISTS FROM APPLICATION OF THE 
              GOVERNMENT PENSION OFFSET AND WINDFALL ELIMINATION 
              PROVISIONS.

    (a) Exclusion from Government Pension Offset Provisions.--
Subsections (b)(4), (c)(2), (e)(7), (f)(2), and (g)(4) of section 202 
of the Social Security Act (42 U.S.C. 402 (b)(4), (c)(2), (e)(7), 
(f)(2), and (g)(4)) are each amended--
            (1) in subparagraph (A)(ii), by striking ``unless 
        subparagraph (B) applies.'';
            (2) in subparagraph (A), by striking ``The'' in the matter 
        following clause (ii) and inserting ``unless subparagraph (B) 
        applies. The''; and
            (3) in subparagraph (B), by redesignating the existing 
        matter as clause (ii), and by inserting before such clause (ii) 
        (as so redesignated) the following:
    ``(B)(i) Subparagraph (A)(i) shall not apply with respect to 
monthly periodic benefits based wholly on service as a member of a 
uniformed service (as defined in section 210(m)).''.
    (b) Exclusion From Windfall Elimination Provisions.--Section 
215(a)(7)(A) of such Act (as amended by section 210(a) of this Act) and 
section 215(d)(3) of such Act (as amended by section 210(b) of this 
Act) are each further amended--
            (1) by striking ``and'' before ``(II)''; and
            (2) by striking ``section 233'' and inserting ``section 
        233, and (III) a payment based wholly on service as a member of 
        a uniformed service (as defined in section 210(m))''.
    (c) Effective Date.--The amendments made by this section shall 
apply (notwithstanding section 215(f) of the Social Security Act) with 
respect to benefits payable for months after January 1995.

SEC. 210. REPEAL OF THE FACILITY-OF-PAYMENT PROVISION.

    (a) Repeal of Rule Precluding Redistribution Under Family 
Maximum.--Section 203(i) of the Social Security Act (42 U.S.C. 403(i)) 
is repealed.
    (b) Coordination Under Family Maximum of Reduction in Beneficiary's 
Auxiliary Benefits With Suspension of Auxiliary Benefits of Other 
Beneficiary Under Earnings Test.--Section 203(a)(4) of such Act (42 
U.S.C. 403(a)(4)) is amended by striking ``section 222(b). Whenever'' 
and inserting the following: ``section 222(b). Notwithstanding the 
preceding sentence, any reduction under this subsection in the case of 
an individual who is entitled to a benefit under subsection (b), (c), 
(d), (e), (f), (g), or (h) of section 202 for any month on the basis of 
the same wages and self-employment income as another person--
            ``(A) who also is entitled to a benefit under subsection 
        (b), (c), (d), (e), (f), (g), or (h) of section 202 for such 
        month,
            ``(B) who does not live in the same household as such 
        individual, and
            ``(C) whose benefit for such month is suspended (in whole 
        or in part) pursuant to subsection (h)(3) of this section,
shall be made before the suspension under subsection (h)(3). 
Whenever''.
    (c) Conforming Amendment Applying Earnings Reporting Requirement 
Despite Suspension of Benefits.--The third sentence of section 
203(h)(1)(A) of such Act (42 U.S.C. 403(h)(1)(A)) is amended by 
striking ``Such report need not be made'' and all that follows through 
``The Secretary may grant'' and inserting the following: ``Such report 
need not be made for any taxable year--
            ``(i) beginning with or after the month in which such 
        individual attained age 70, or
            ``(ii) if benefit payments for all months (in such taxable 
        year) in which such individual is under age 70 have been 
        suspended under the provisions of the first sentence of 
        paragraph (3) of this subsection, unless--
                    ``(I) such individual is entitled to benefits under 
                subsection (b), (c), (d), (e), (f), (g), or (h) of 
                section 202,
                    ``(II) such benefits are reduced under subsection 
                (a) of this section for any month in such taxable year, 
                and
                    ``(III) in any such month there is another person 
                who also is entitled to benefits under subsection (b), 
                (c), (d), (e), (f), (g), or (h) of section 202 on the 
                basis of the same wages and self-employment income and 
                who does not live in the same household as such 
                individual.
The Secretary may grant''.
    (d) Conforming Amendment Deleting Special Income Tax Treatment of 
Benefits No Longer Required by Reason of Repeal.--Section 86(d)(1) of 
the Internal Revenue Code of 1986 (relating to income tax on social 
security benefits) is amended by striking the last sentence.
    (e) Effective Dates.--
            (1) The amendments made by subsections (a), (b), and (c) 
        shall apply with respect to benefits payable for months after 
        December 1995.
            (2) The amendment made by subsection (d) shall apply with 
        respect to benefits received after December 31, 1995, in 
        taxable years ending after such date.

SEC. 211. MAXIMUM FAMILY BENEFITS IN GUARANTEE CASES.

    (a) In General.--Section 203(a) of the Social Security Act (42 
U.S.C. 403(a)) is amended by adding at the end the following new 
paragraph:
    ``(10)(A) Subject to subparagraphs (B) and (C)--
            ``(i) the total monthly benefits to which beneficiaries may 
        be entitled under sections 202 and 223 for a month on the basis 
        of the wages and self-employment income of an individual whose 
        primary insurance amount is computed under section 
        215(a)(2)(B)(i) shall equal the total monthly benefits which 
        were authorized by this section with respect to such 
        individual's primary insurance amount for the last month of his 
        prior entitlement to disability insurance benefits, increased 
        for this purpose by the general benefit increases and other 
        increases under section 215(i) that would have applied to such 
        total monthly benefits had the individual remained entitled to 
        disability insurance benefits until the month in which he 
        became entitled to old-age insurance benefits or reentitled to 
        disability insurance benefits or died, and
            ``(ii) the total monthly benefits to which beneficiaries 
        may be entitled under sections 202 and 223 for a month on the 
        basis of the wages and self-employment income of an individual 
        whose primary insurance amount is computed under section 
        215(a)(2)(C) shall equal the total monthly benefits which were 
        authorized by this section with respect to such individual's 
        primary insurance amount for the last month of his prior 
        entitlement to disability insurance benefits.
    ``(B) In any case in which--
            ``(i) the total monthly benefits with respect to such 
        individual's primary insurance amount for the last month of his 
        prior entitlement to disability insurance benefits was computed 
        under paragraph (6), and
            ``(ii) the individual's primary insurance amount is 
        computed under subparagraph (B)(i) or (C) of section 215(a)(2) 
        by reason of the individual's entitlement to old-age insurance 
        benefits or death,
the total monthly benefits shall equal the total monthly benefits that 
would have been authorized with respect to the primary insurance amount 
for the last month of his prior entitlement to disability insurance 
benefits if such total monthly benefits had been computed without 
regard to paragraph (6).
    ``(C) This paragraph shall apply before the application of 
paragraph (3)(A), and before the application of section 203(a)(1) of 
this Act as in effect in December 1978.''.
    (b) Conforming Amendment.--Section 203(a)(8) of such Act (42 U.S.C. 
403(a)(8)) is amended by striking ``Subject to paragraph (7),'' and 
inserting ``Subject to paragraph (7) and except as otherwise provided 
in paragraph (10)(C),''.
    (c) Effective Date.--The amendments made by this section shall 
apply for the purpose of determining the total monthly benefits to 
which beneficiaries may be entitled under sections 202 and 223 of the 
Social Security Act based on the wages and self-employment income of an 
individual who--
            (1) becomes entitled to an old-age insurance benefit under 
        section 202(a) of such Act,
            (2) becomes reentitled to a disability insurance benefit 
        under section 223 of such Act, or
            (3) dies,
after January 1995.

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.

    (a) In General.--Section 1106 of the Social Security Act (42 U.S.C. 
1306) is amended--
            (1) by redesignating subsections (d) and (e) as subsections 
        (e) and (f), respectively;
            (2) in subsection (f) (as so redesignated), by striking 
        ``subsection (d)'' and inserting ``subsection (e)''; and
            (3) by inserting after subsection (c) the following new 
        subsection:
    ``(d) Notwithstanding any other provision of this section, in any 
case in which--
            ``(1) information regarding whether an individual is shown 
        on the records of the Secretary as being alive or deceased is 
        requested from the Secretary for purposes of epidemiological or 
        similar research which the Secretary finds may reasonably be 
        expected to contribute to a national health interest, and
            ``(2) the requester agrees to reimburse the Secretary for 
        providing such information and to comply with limitations on 
        safeguarding and rerelease or redisclosure of such information 
        as may be specified by the Secretary,
the Secretary shall comply with such request, except to the extent that 
compliance with such request would constitute a violation of the terms 
of any contract entered into under section 205(r).''.
    (b) Availability of Information Returns Regarding Wages Paid 
Employees.--Section 6103(l)(5) of the Internal Revenue Code of 1986 
(relating to disclosure of returns and return information to the 
Department of Health and Human Services for purposes other than tax 
administration) is amended--
            (1) by striking ``for the purpose of'' and inserting ``for 
        the purpose of--'';
            (2) by striking ``carrying out, in accordance with an 
        agreement'' and inserting the following:
                    ``(A) carrying out, in accordance with an 
                agreement'';
            (3) by striking ``program.'' and inserting ``program; or''; 
        and
            (4) by adding at the end the following new subparagraph:
                    ``(B) providing information regarding the mortality 
                status of individuals for epidemiological and similar 
                research in accordance with section 1106(d) of the 
                Social Security Act.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to requests for information made after the date of 
the enactment of this Act.

SEC. 213. MISUSE OF SYMBOLS, EMBLEMS, OR NAMES IN REFERENCE TO SOCIAL 
              SECURITY PROGRAMS AND AGENCIES.

    (a) Prohibition of Unauthorized Reproduction, Reprinting, or 
Distribution for Fee of Certain Official Publications.--Section 1140(a) 
of the Social Security Act (42 U.S.C. 1320b-10(a)) is amended--
            (1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively;
            (2) by inserting ``(1)'' after ``(a)''; and
            (3) by adding at the end the following new paragraph:
    ``(2) No person may, for a fee, reproduce, reprint, or distribute 
any item consisting of a form, application, or other publication of the 
Social Security Administration unless such person has obtained 
specific, written authorization for such activity in accordance with 
regulations which the Secretary shall prescribe.''.
    (b) Addition to Prohibited Words, Letters, Symbols, and Emblems.--
Paragraph (1) of section 1140(a) of such Act (as redesignated by 
subsection (a)) is further amended--
            (1) in subparagraph (A) (as redesignated), by striking 
        ``Administration', the letters `SSA' or `HCFA','' and inserting 
        ``Administration', `Department of Health and Human Services', 
        `Health and Human Services', `Supplemental Security Income 
        Program', or `Medicaid', the letters `SSA', `HCFA', `DHHS', 
        `HHS', or `SSI',''; and
            (2) in subparagraph (B) (as redesignated), by striking 
        ``Social Security Administration'' each place it appears and 
        inserting ``Social Security Administration, Health Care 
        Financing Administration, or Department of Health and Human 
        Services'', and by striking ``or of the Health Care Financing 
        Administration''.
    (c) Exemption for Use of Words, Letters, Symbols, and Emblems of 
State and Local Government Agencies by Such Agencies.--Paragraph (1) of 
section 1140(a) of such Act (as redesignated by subsection (a)) is 
further amended by adding at the end the following new sentence: ``The 
preceding provisions of this subsection shall not apply with respect to 
the use by any agency or instrumentality of a State or political 
subdivision of a State of any words or letters which identify an agency 
or instrumentality of such State or of a political subdivision of such 
State or the use by any such agency or instrumentality of any symbol or 
emblem of an agency or instrumentality of such State or a political 
subdivision of such State.''.
    (d) Inclusion of Reasonableness Standard.--Section 1140(a)(1) of 
such Act (as amended by the preceding provisions of this section) is 
further amended, in the matter following subparagraph (B) (as 
redesignated), by striking ``convey'' and inserting ``convey, or in a 
manner which reasonably could be interpreted or construed as 
conveying,''.
    (e) Ineffectiveness of Disclaimers.--Subsection (a) of section 1140 
of such Act (as amended by the preceding provisions of this section) is 
further amended by adding at the end the following new paragraph:
    ``(3) Any determination of whether the use of one or more words, 
letters, symbols, or emblems (or any combination or variation thereof) 
in connection with an item described in paragraph (1) or the 
reproduction, reprinting, or distribution of an item described in 
paragraph (2) is a violation of this subsection shall be made without 
regard to any inclusion in such item (or any so reproduced, reprinted, 
or distributed copy thereof) of a disclaimer of affiliation with the 
United States Government or any particular agency or instrumentality 
thereof.''.
    (f) Violations With Respect to Individual Items.--Section 
1140(b)(1) of such Act (42 U.S.C. 1320b-10(b)(1)) is amended by adding 
at the end the following new sentence: ``In the case of any items 
referred to in subsection (a)(1) consisting of pieces of mail, each 
such piece of mail which contains one or more words, letters, symbols, 
or emblems in violation of subsection (a) shall represent a separate 
violation. In the case of any item referred to in subsection (a)(2), 
the reproduction, reprinting, or distribution of such item shall be 
treated as a separate violation with respect to each copy thereof so 
reproduced, reprinted, or distributed.''.
    (g) Elimination of Cap on Aggregate Liability Amount.--
            (1) Repeal.--Paragraph (2) of section 1140(b) of such Act 
        (42 U.S.C. 1320b-10(b)(2)) is repealed.
            (2) Conforming amendments.--Section 1140(b) of such Act is 
        further amended--
                    (A) by striking ``(1) Subject to paragraph (2), 
                the'' and inserting ``The'';
                    (B) by redesignating subparagraphs (A) and (B) as 
                paragraphs (1) and (2), respectively; and
                    (C) in paragraph (1) (as redesignated), by striking 
                ``subparagraph (B)'' and inserting ``paragraph (2)''.
    (h) Removal of Formal Declination Requirement.--Section 1140(c)(1) 
of such Act (42 U.S.C. 1320b-10(c)(1)) is amended by inserting ``and 
the first sentence of subsection (c)'' after ``and (i)''.
    (i) Penalties Relating to Social Security Administration Deposited 
in OASI Trust Fund.--Section 1140(c)(2) of such Act (42 U.S.C. 1320b-
10(c)(2)) is amended in the second sentence by striking ``United 
States.'' and inserting ``United States, except that, to the extent 
that such amounts are recovered under this section as penalties imposed 
for misuse of words, letters, symbols, or emblems relating to the 
Social Security Administration, such amounts shall be deposited into 
the Federal Old-Age and Survivor's Insurance Trust Fund.''.
    (j) Enforcement.--Section 1140 of such Act (42 U.S.C. 1320b-10) is 
amended by adding at the end the following new subsection:
    ``(d) The preceding provisions of this section shall be enforced 
through the Office of Inspector General of the Department of Health and 
Human Services.''.
    (k) Annual Reports.--Section 1140 of such Act (as amended by the 
preceding provisions of this section) is further amended by adding at 
the end the following new subsection:
    ``(e) The Secretary shall include in the annual report submitted 
pursuant to section 704 a report on the operation of this section 
during the year covered by such annual report. Such report shall 
specify--
            ``(1) the number of complaints of violations of this 
        section received by the Social Security Administration during 
        the year,
            ``(2) the number of cases in which a notice of violation of 
        this section was sent by the Social Security Administration 
        during the year requesting that an individual cease activities 
        in violation of this section,
            ``(3) the number of complaints of violations of this 
        section referred by the Social Security Administration to the 
        Inspector General in the Department of Health and Human 
        Services during the year,
            ``(4) the number of investigations of violations of this 
        section undertaken by the Inspector General during the year,
            ``(5) the number of cases in which a demand letter was sent 
        during the year assessing a civil money penalty under this 
        section,
            ``(6) the total amount of civil money penalties assessed 
        under this section during the year,
            ``(7) the number of requests for hearings filed during the 
        year pursuant to subsection (c)(1) of this section and section 
        1128A(c)(2),
            ``(8) the disposition during such year of hearings filed 
        pursuant to sections 1140(c)(1) and 1128A(c)(2), and
            ``(9) the total amount of civil money penalties under this 
        section deposited into the Federal Old-Age and Survivors 
        Insurance Trust Fund during the year.''.
    (l) Prohibition of Misuse of Department of the Treasury Names, 
Symbols, Etc.--
            (1) General rule.--Subchapter II of chapter 3 of title 31, 
        United States Code, is amended by adding at the end thereof the 
        following new section:
``Sec. 333. Prohibition of misuse of Department of the Treasury names, 
              symbols, etc.
    ``(a) General Rule.--No person may use, in connection with, or as a 
part of, any advertisement, solicitation, business activity, or 
product, whether alone or with other words, letters, symbols, or 
emblems--
            ``(1) the words `Department of the Treasury', or the name 
        of any service, bureau, office, or other subdivision of the 
        Department of the Treasury,
            ``(2) the titles `Secretary of the Treasury' or `Treasurer 
        of the United States' or the title of any other officer or 
        employee of the Department of the Treasury,
            ``(3) the abbreviations or initials of any entity referred 
        to in paragraph (1),
            ``(4) the words `United States Savings Bond' or the name of 
        any other obligation issued by the Department of the Treasury,
            ``(5) any symbol or emblem of an entity referred to in 
        paragraph (1) (including the design of any envelope or 
        stationary used by such an entity), and
            ``(6) any colorable imitation of any such words, titles, 
        abbreviations, initials, symbols, or emblems,
in a manner which could reasonably be interpreted or construed as 
conveying the false impression that such advertisement, solicitation, 
business activity, or product is in any manner approved, endorsed, 
sponsored, or authorized by, or associated with, the Department of the 
Treasury or any entity referred to in paragraph (1) or any officer or 
employee thereof.
    ``(b) Treatment of Disclaimers.--Any determination of whether a 
person has violated the provisions of subsection (a) shall be made 
without regard to any use of a disclaimer of affiliation with the 
United States Government or any particular agency or instrumentality 
thereof.
    ``(c) Civil Penalty.--
            ``(1) In general.--The Secretary of the Treasury may impose 
        a civil penalty on any person who violates the provisions of 
        subsection (a).
            ``(2) Amount of penalty.--The amount of the civil penalty 
        imposed by paragraph (1) shall not exceed $5,000 for each use 
        of any material in violation of subsection (a). If such use is 
        in a broadcast or telecast, the preceding sentence shall be 
        applied by substituting `$25,000' for `$5,000'.
            ``(3) Time limitations.--
                    ``(A) Assessments.--The Secretary of the Treasury 
                may assess any civil penalty under paragraph (1) at any 
                time before the end of the 3-year period beginning on 
                the date of the violation with respect to which such 
                penalty is imposed.
                    ``(B) Civil action.--The Secretary of the Treasury 
                may commence a civil action to recover any penalty 
                imposed under this subsection at any time before the 
                end of the 2-year period beginning on the date on which 
                such penalty was assessed.
            ``(4) Coordination with subsection (d).--No penalty may be 
        assessed under this subsection with respect to any violation 
        after a criminal proceeding with respect to such violation has 
        been commenced under subsection (d).
    ``(d) Criminal Penalty.--
            ``(1) In general.--If any person knowingly violates 
        subsection (a), such person shall, upon conviction thereof, be 
        fined not more than $10,000 for each such use or imprisoned not 
        more than 1 year, or both. If such use is in a broadcast or 
        telecast, the preceding sentence shall be applied by 
        substituting `$50,000' for `$10,000'.
            ``(2) Time limitations.--No person may be prosecuted, 
        tried, or punished under paragraph (1) for any violation of 
        subsection (a) unless the indictment is found or the 
        information instituted during the 3-year period beginning on 
        the date of the violation.
            ``(3) Coordination with subsection (c).--No criminal 
        proceeding may be commenced under this subsection with respect 
        to any violation if a civil penalty has previously been 
        assessed under subsection (c) with respect to such violation.''
            (2) Clerical amendment.--The analysis for chapter 3 of 
        title 31, United States Code, is amended by adding after the 
        item relating to section 332 the following new item:

``333. Prohibition of misuse of Department of the Treasury names, 
                            symbols, etc.''.
            (3) Report.--Not later than May 1, 1996, the Secretary of 
        the Treasury shall submit a report to the Committee on Ways and 
        Means of the House of Representatives and the Committee on 
        Finance of the Senate on the implementation of the amendments 
        made by this section. Such report shall include the number of 
        cases in which the Secretary has notified persons of violations 
        of section 333 of title 31, United States Code (as added by 
        subsection (a)), the number of prosecutions commenced under 
        such section, and the total amount of the penalties collected 
        in such prosecutions.
    (m) Effective Date.--The amendments made by this section shall 
apply with respect to violations occurring after the date of the 
enactment of this Act.

SEC. 214. INCREASED PENALTIES FOR UNAUTHORIZED DISCLOSURE OF SOCIAL 
              SECURITY INFORMATION.

    (a) Unauthorized Disclosure.--Section 1106(a) of the Social 
Security Act (42 U.S.C. 1306(a)) is amended--
            (1) by striking ``misdemeanor'' and inserting ``felony'';
            (2) by striking ``$1,000'' and inserting ``$10,000 for each 
        occurrence of a violation''; and
            (3) by striking ``one year'' and inserting ``5 years''.
    (b) Unauthorized Disclosure by Fraud.--Section 1107(b) of such Act 
(42 U.S.C. 1307(b)) is amended--
            (1) by inserting ``social security account number,'' after 
        ``information as to the'';
            (2) by striking ``misdemeanor'' and inserting ``felony'';
            (3) by striking ``$1,000'' and inserting ``$10,000 for each 
        occurrence of a violation''; and
            (4) by striking ``one year'' and inserting ``5 years''.
    (c) Effective Date.--The amendments made by this section shall 
apply to violations occurring on or after the date of the enactment of 
this Act.

SEC. 215. INCREASE IN AUTHORIZED PERIOD FOR EXTENSION OF TIME TO FILE 
              ANNUAL EARNINGS REPORT.

    (a) In General.--Section 203(h)(1)(A) of the Social Security Act 
(42 U.S.C. 403(h)(1)(A)) is amended in the last sentence by striking 
``three months'' and inserting ``four months''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to reports of earnings for taxable years ending on 
or after December 31, 1994.

SEC. 216. EXTENSION OF DISABILITY INSURANCE PROGRAM DEMONSTRATION 
              PROJECT AUTHORITY.

    (a) In General.--Section 505 of the Social Security Disability 
Amendments of 1980 (Public Law 96-265), as amended by section 12101 of 
the Consolidated Omnibus Budget Reconciliation Act of 1985 (Public Law 
99-272), section 10103 of the Omnibus Budget Reconciliation Act of 1989 
(Public Law 101-239), and section 5120 of the Omnibus Budget 
Reconciliation Act of 1990 (Public Law 101-508) is further amended--
            (1) in paragraph (3) of subsection (a), by striking ``June 
        10, 1993'' and inserting ``June 10, 1996'';
            (2) in paragraph (4) of subsection (a), by striking 
        ``1992'' and inserting ``1995''; and
            (3) in subsection (c), by striking ``October 1, 1993'' and 
        inserting ``October 1, 1996''.
    (b) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 217. CROSS-MATCHING OF SOCIAL SECURITY ACCOUNT NUMBER INFORMATION 
              AND EMPLOYER IDENTIFICATION NUMBER INFORMATION MAINTAINED 
              BY THE DEPARTMENT OF AGRICULTURE.

    (a) Social Security Account Number Information.--Clause (iii) of 
section 205(c)(2)(C) of the Social Security Act (42 U.S.C. 
405(c)(2)(C)) (as added by section 1735(a)(3) of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (Public Law 101-624; 104 Stat. 
3791)) is amended--
            (1) by inserting ``(I)'' after ``(iii)''; and
            (2) by striking ``The Secretary of Agriculture shall 
        restrict'' and all that follows and inserting the following:
    ``(II) The Secretary of Agriculture may share any information 
contained in any list referred to in subclause (I) with any other 
agency or instrumentality of the United States which otherwise has 
access to social security account numbers in accordance with this 
subsection or other applicable Federal law, except that the Secretary 
of Agriculture may share such information only to the extent that such 
Secretary determines such sharing would assist in verifying and 
matching such information against information maintained by such other 
agency or instrumentality. Any such information shared pursuant to this 
subclause may be used by such other agency or instrumentality only for 
the purpose of effective administration and enforcement of the Food 
Stamp Act of 1977 or for the purpose of investigation of violations of 
other Federal laws or enforcement of such laws.
    ``(III) The Secretary of Agriculture, and the head of any other 
agency or instrumentality referred to in this subclause, shall 
restrict, to the satisfaction of the Secretary of Health and Human 
Services, access to social security account numbers obtained pursuant 
to this clause only to officers and employees of the United States 
whose duties or responsibilities require access for the purposes 
described in subclause (II).
    ``(IV) The Secretary of Agriculture, and the head of any agency or 
instrumentality with which information is shared pursuant to clause 
(II), shall provide such other safeguards as the Secretary of Health 
and Human Services determines to be necessary or appropriate to protect 
the confidentiality of the social security account numbers.''.
    (b) Employer Identification Number Information.--Subsection (f) of 
section 6109 of the Internal Revenue Code of 1986 (as added by section 
1735(c) of the Food, Agriculture, Conservation, and Trade Act of 1990 
(Public Law 101-624; 104 Stat. 3792)) (relating to access to employer 
identification numbers by Secretary of Agriculture for purposes of Food 
Stamp Act of 1977) is amended--
            (1) by striking paragraph (2) and inserting the following:
            ``(2) Sharing of information and safeguards.--
                    ``(A) Sharing of information.--The Secretary of 
                Agriculture may share any information contained in any 
                list referred to in paragraph (1) with any other agency 
                or instrumentality of the United States which otherwise 
                has access to employer identification numbers in 
                accordance with this section or other applicable 
                Federal law, except that the Secretary of Agriculture 
                may share such information only to the extent that such 
                Secretary determines such sharing would assist in 
                verifying and matching such information against 
                information maintained by such other agency or 
                instrumentality. Any such information shared pursuant 
                to this subparagraph may be used by such other agency 
                or instrumentality only for the purpose of effective 
                administration and enforcement of the Food Stamp Act of 
                1977 or for the purpose of investigation of violations 
                of other Federal laws or enforcement of such laws.
                    ``(B) Safeguards.--The Secretary of Agriculture, 
                and the head of any other agency or instrumentality 
                referred to in subparagraph (A), shall restrict, to the 
                satisfaction of the Secretary of the Treasury, access 
                to employer identification numbers obtained pursuant to 
                this subsection only to officers and employees of the 
                United States whose duties or responsibilities require 
                access for the purposes described in subparagraph (A). 
                The Secretary of Agriculture, and the head of any 
                agency or instrumentality with which information is 
                shared pursuant to subparagraph (A), shall provide such 
                other safeguards as the Secretary of the Treasury 
                determines to be necessary or appropriate to protect 
                the confidentiality of the employer identification 
                numbers.'';
            (2) in paragraph (3), by striking ``by the Secretary of 
        Agriculture pursuant to this subsection'' and inserting 
        ``pursuant to this subsection by the Secretary of Agriculture 
        or the head of any agency or instrumentality with which 
        information is shared pursuant to paragraph (2)'', and by 
        striking ``social security account numbers'' and inserting 
        ``employer identification numbers''; and
            (3) in paragraph (4), by striking ``by the Secretary of 
        Agriculture pursuant to this subsection'' and inserting 
        ``pursuant to this subsection by the Secretary of Agriculture 
        or any agency or instrumentality with which information is 
        shared pursuant to paragraph (2)''.

SEC. 218. CERTAIN TRANSFERS TO RAILROAD RETIREMENT ACCOUNT MADE 
              PERMANENT.

    Subsection (c)(1)(A) of section 224 of the Railroad Retirement 
Solvency Act of 1983 (relating to section 72(r) revenue increase 
transferred to certain railroad accounts) is amended by striking ``with 
respect to benefits received before October 1, 1992''.

SEC. 219. AUTHORIZATION FOR USE OF SOCIAL SECURITY ACCOUNT NUMBERS BY 
              DEPARTMENT OF LABOR IN ADMINISTRATION OF FEDERAL WORKERS' 
              COMPENSATION LAWS.

    Section 205(c)(2)(C) of the Social Security Act (42 U.S.C. 
405(c)(2)(C)) is amended by adding at the end the following new clause:
    ``(ix) In the administration of the provisions of chapter 81 of 
title 5, United States Code, and the Longshore and Harbor Workers' 
Compensation Act (33 U.S.C. 901 et seq.), the Secretary of Labor may 
require by regulation that any person filing a notice of injury or a 
claim for benefits under such provisions provide as part of such notice 
or claim such person's social security account number, subject to the 
requirements of this clause. No officer or employee of the Department 
of Labor shall have access to any such number for any purpose other 
than the establishment of a system of records necessary for the 
effective administration of such provisions. The Secretary of Labor 
shall restrict, to the satisfaction of the Secretary of Health and 
Human Services, access to social security account numbers obtained 
pursuant to this clause to officers and employees of the United States 
whose duties or responsibilities require access for the administration 
or enforcement of such provisions. The Secretary of Labor shall provide 
such other safeguards as the Secretary of Health and Human Services 
determines to be necessary or appropriate to protect the 
confidentiality of the social security account numbers.''.

SEC. 220. COVERAGE UNDER FICA OF FEDERAL EMPLOYEES TRANSFERRED 
              TEMPORARILY TO INTERNATIONAL ORGANIZATIONS.

    (a) Treatment of Service in the Employ of International 
Organizations by Certain Transferred Federal Employees.--
            (1) In general.--Section 3121 of the Internal Revenue Code 
        of 1986 (relating to definitions) is amended by adding at the 
        end the following new subsection:
    ``(y) Service in the Employ of International Organizations by 
Certain Transferred Federal Employees.--
            ``(1) In general.--For purposes of this chapter, service 
        performed in the employ of an international organization by an 
        individual pursuant to a transfer of such individual to such 
        international organization pursuant to section 3582 of title 5, 
        United States Code, shall constitute `employment' if--
                    ``(A) immediately before such transfer, such 
                individual performed service with a Federal agency 
                which constituted `employment' under subsection (b) for 
                purposes of the taxes imposed by sections 3101(a) and 
                3111(a), and
                    ``(B) such individual would be entitled, upon 
                separation from such international organization and 
                proper application, to reemployment with such Federal 
                agency under such section 3582.
            ``(2) Definitions.--For purposes of this subsection--
                    ``(A) Federal agency.--The term `Federal agency' 
                means an agency, as defined in section 3581(1) of title 
                5, United States Code.
                    ``(B) International organization.--The term 
                `international organization' has the meaning provided 
                such term by section 3581(3) of title 5, United States 
                Code.''
            (2) Contributions by federal agency.--Section 3122 of such 
        Code (relating to Federal service) is amended by inserting 
        after the first sentence the following new sentence: ``In the 
        case of the taxes imposed by this chapter with respect to 
        service performed in the employ of an international 
        organization pursuant to a transfer to which the provisions of 
        section 3121(y) are applicable, the determination of the amount 
        of remuneration for such service, and the return and payment of 
        the taxes imposed by this chapter, shall be made by the head of 
        the Federal agency from which the transfer was made.''
            (3) Collection of employee contributions.--Section 3102 of 
        such Code (relating to deduction of tax from wages) is amended 
        by adding at the end the following new subsection:
    ``(e) Special Rule for Certain Transferred Federal Employees.--In 
the case of any payments of wages for service performed in the employ 
of an international organization pursuant to a transfer to which the 
provisions of section 3121(y) are applicable--
            ``(1) subsection (a) shall not apply,
            ``(2) the head of the Federal agency from which the 
        transfer was made shall separately include on the statement 
        required under section 6051--
                    ``(A) the amount determined to be the amount of the 
                wages for such service, and
                    ``(B) the amount of the tax imposed by section 3101 
                on such payments, and
            ``(3) the tax imposed by section 3101 on such payments 
        shall be paid by the employee.''
            (4) Exclusion from treatment as trade or business.--
        Paragraph (2)(C) of section 1402(c) of such Code (defining 
        trade or business) is amended by adding at the end the 
        following: ``except service which constitutes `employment' 
        under section 3121(y),''.
            (5) Conforming amendment.--Paragraph (15) of section 
        3121(b) of such Code is amended by inserting ``, except service 
        which constitutes `employment' under subsection (y)'' after 
        ``organization''.
    (b) Amendments to the Social Security Act.--
            (1) In general.--Section 210 of the Social Security Act (42 
        U.S.C. 410) is amended by adding at the end the following new 
        subsection:

   ``service in the employ of international organizations by certain 
                     transferred federal employees

    ``(r)(1) For purposes of this title, service performed in the 
employ of an international organization by an individual pursuant to a 
transfer of such individual to such international organization pursuant 
to section 3582 of title 5, United States Code, shall constitute 
`employment' if--
            ``(A) immediately before such transfer, such individual 
        performed service with a Federal agency which constituted 
        `employment' as defined in subsection (a), and
            ``(B) such individual would be entitled, upon separation 
        from such international organization and proper application, to 
        reemployment with such Federal agency under such section 3582.
    ``(2) For purposes of this subsection:
            ``(A) The term `Federal agency' means an agency, as defined 
        in section 3581(1) of title 5, United States Code.
            ``(B) The term `international organization' has the meaning 
        provided such term by section 3581(3) of title 5, United States 
        Code.''
            (2) Exclusion from treatment as trade or business.--Section 
        211(c)(2)(C) of such Act (42 U.S.C. 411(c)(2)(C)) is amended by 
        inserting before the semicolon the following ``, except service 
        which constitutes `employment' under section 210(r)''.
            (3) Conforming amendment.--Section 210(a)(15) of such Act 
        (42 U.S.C. 410(a)(15)) is amended by inserting ``, except 
        service which constitutes `employment' under subsection (r)'' 
        before the semicolon.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to service performed after the calendar quarter 
following the calendar quarter in which the date of the enactment of 
this Act occurs.

SEC. 221. EXTEND 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.

    (a) Amendments to the Internal Revenue Code of 1986.--
            (1) The following provisions of the Internal Revenue Code 
        of 1986 are each amended by striking ``(J), or (M)'' each place 
        it appears and inserting ``(J), (M), or (Q)'':
                    (A) Section 871(c).
                    (B) Section 1441(b).
                    (C) Section 3121(b)(19).
                    (D) Section 3231(e)(1).
                    (E) Section 3306(c)(19).
            (2) Paragraph (3) of section 872(b) of such Code is amended 
        by striking ``(F) or (J)'' and inserting ``(F), (J), or (Q)''.
            (3) Paragraph (5) of section 7701(b) of such Code is 
        amended by striking ``subparagraph (J)'' in subparagraphs 
        (C)(i) and (D)(i)(II) and inserting ``subparagraph (J) or 
        (Q)''.
    (b) Amendment to Social Security Act.--Paragraph (19) of section 
210(a) of the Social Security Act is amended by striking ``(J), or 
(M)'' each place it appears and inserting ``(J), (M), or (Q)''.
    (c) Effective Date.--The amendments made by this subsection shall 
take effect with the calendar quarter following the date of the 
enactment of this Act.

SEC. 222. STUDY OF RISING COSTS OF DISABILITY INSURANCE BENEFITS.

    (a) In General.--As soon as practicable after the date of the 
enactment of this Act, the Secretary of Health and Human Services shall 
conduct a comprehensive study of the reasons for rising costs payable 
from the Federal Disability Insurance Trust Fund.
    (b) Matters to Be Included in Study.--In conducting the study under 
this section, the Secretary shall--
            (1) determine the relative importance of the following 
        factors in increasing the costs payable from the Trust Fund:
                    (A) increased numbers of applications for benefits;
                    (B) higher rates of benefit allowances; and
                    (C) decreased rates of benefit terminations; and
            (2) identify, to the extent possible, underlying social, 
        economic, demographic, programmatic, and other trends 
        responsible for changes in disability benefit applications, 
        allowances, and terminations.
    (c) Report.--Not later than December 31, 1994, the Secretary shall 
transmit a report to the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate setting 
forth the results of the study conducted under this section, together 
with any recommendations for legislative changes which the Secretary 
determines appropriate.

SEC. 223. COMMISSION ON CHILDHOOD DISABILITY.

    (a) Establishment of Commission.--The Secretary of Health and Human 
Services (in this section referred to as the ``Secretary'') shall 
appoint a Commission on the Evaluation of Disability in Children (in 
this section referred to as the ``Commission'').
    (b) Appointment of Members.--(1) The Secretary shall appoint not 
less than 9 but not more than 15 members to the Commission, including--
            (A) recognized experts in the field of medicine, whose work 
        involves--
                    (i) the evaluation and treatment of disability in 
                children,
                    (ii) the study of congenital, genetic, or perinatal 
                disorders in children, or
                    (iii) the measurement of developmental milestones 
                and developmental deficits in children; and
            (B) recognized experts in the fields of--
                    (i) psychology,
                    (ii) education and rehabilitation,
                    (iii) law,
                    (iv) the administration of disability programs,
                    (v) social insurance (including health insurance), 
                and
                    (vi) other fields of expertise that the Secretary 
                determines to be appropriate.
    (2) Members shall be appointed by January 1, 1995, without regard 
to the provisions of title 5, United States Code, governing 
appointments to competitive service.
    (3) Members appointed under this subsection shall serve for a term 
equivalent to the duration of the Commission.
    (4) The Secretary shall designate a member of the Commission to 
serve as Chair of the Commission for a term equivalent to the duration 
of the Commission.
    (c) Administrative Provisions.--(1) Service as a member of the 
Commission by an individual who is not otherwise a Federal employee 
shall not be considered service in an appointive or elective position 
in the Federal Government for the purposes of title 5, United States 
Code.
    (2) Each member of the Commission who is not a full-time Federal 
employee shall be paid compensation at a rate equal to the daily 
equivalent of the rate of basic pay in effect for Level IV of the 
Executive Schedule for each day (including travel time) the member 
attends meetings or otherwise performs the duties of the Commission.
    (3) While away from their homes or regular places of business on 
the business of the Commission, each member who is not a full-time 
Federal employee may be allowed travel expenses, including per diem in 
lieu of subsistence, as authorized by section 5703 of title 5, United 
States Code, for persons employed intermittently in the Government 
service.
    (d) Assistance to Commission.--The Commission may engage 
individuals skilled in medical and other aspects of childhood 
disability to provide such technical assistance as may be necessary to 
carry out the functions of the Commission. The Secretary shall make 
available to the Commission such secretarial, clerical, and other 
assistance as the Commission may require to carry out the functions of 
the Commission.
    (e) Study by the Commission.--(1) The Commission shall conduct a 
study, in consultation with the National Academy of Sciences, of the 
effects of the definition of ``disability'' under title XVI of the 
Social Security Act (42 U.S.C. 1382 et seq.) in effect on the date of 
enactment of this Act, as such definition applies to determining 
whether a child under the age of 18 is eligible to receive benefits 
under such title, the appropriateness of such definition, and the 
advantages and disadvantages of using any alternative definition of 
disability in determining whether a child under age 18 is eligible to 
receive benefits under such title.
    (2) The study described in paragraph (1) shall include issues of--
            (A) whether the need by families for assistance in meeting 
        high costs of medical care for children with serious physical 
        or mental impairments, whether or not they are eligible for 
        disability benefits under title XVI of the Social Security Act, 
        might appropriately be met through expansion of Federal health 
        assistance programs (including the program of medical 
        assistance under title XIX of such Act);
            (B) the feasibility of providing benefits to children 
        through noncash means, including but not limited to vouchers, 
        debit cards, and electronic benefit transfer systems;
            (C) the extent to which the Social Security Administration 
        can involve private organizations in an effort to increase the 
        provision of social services, education, and vocational 
        instruction with the aim of promoting independence and the 
        ability to engage in substantial gainful activity;
            (D) the feasibility of providing retroactive supplemental 
        security income benefits pursuant to the decision in Sullivan 
        v. Zebley, 110 S. Ct. 2658 (1990), on a prorated basis or by 
        means of a packaged trust;
            (E) methods to increase the extent to which benefits are 
        used in the effort to assist the child achieve independence and 
        engage in substantial gainful activity; and
            (F) such other issues that the Secretary determines to be 
        appropriate.
    (f) Report.--Not later than November 30, 1995, the Commission shall 
prepare a report and submit such report to the Committee on Ways and 
Means of the House of Representatives and the Committee on Finance of 
the Senate which shall summarize the results of the study described in 
subsection (e) and include any recommendations that the Commission 
determines to be appropriate.

SEC. 224. DISREGARD DEEMED INCOME AND RESOURCES OF INELIGIBLE SPOUSE IN 
              DETERMINING CONTINUED ELIGIBILITY UNDER SECTION 1619(b).

    (a) In General.--Section 1619(b)(2) of the Social Security Act (42 
U.S.C. 1382h(b)(2)) is amended by adding at the end the following:
    ``(C)(i)(I) For purposes of paragraph (1), in determining the 
earnings of an individual whose spouse is not an eligible individual, 
there shall be disregarded the net income of the spouse to the extent 
such net income does not exceed an amount equal to twice the threshold 
amount determined for the individual.
    ``(II) As used in subclause (I), the term `threshold amount' means, 
with respect to an individual--
            ``(aa) $85, plus twice the amount of benefits payable under 
        this title (including federally administered State 
        supplementary payments) to an individual who is living in his 
        or her own household and who has no other income, plus the 
        average amount expended per individual, under the State plan 
        approved under title XIX by the State in which the individual 
        resides, on individuals who are recipients of benefits under 
        this title by reason of disability; or
            ``(bb) if the gross earnings of the individual exceeds the 
        amount described in item (aa), the amount that would be 
        sufficient to allow the individual to provide for himself or 
        herself a reasonable equivalent of benefits and services 
        described in paragraph (1)(D).
    ``(ii) For purposes of paragraph (1)(A), in determining the 
resources of an individual whose spouse is not an eligible individual, 
there shall be disregarded the resources of the spouse to the extent 
the amount of such resources does not exceed the community spouse 
resource allowance (as defined in section 1924(f)(2)) of the State in 
which the individual resides.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 1995.

SEC. 225. PLANS FOR ACHIEVING SELF-SUPPORT NOT DISAPPROVED WITHIN 60 
              DAYS TO BE DEEMED APPROVED.

    (a) Amendments to Income Exclusion Rules.--Section 1612(b)(4) of 
the Social Security Act (42 U.S.C. 1382a(b)(4)(A)) is amended in each 
of subparagraphs (A) and (B) by inserting ``and, for purposes of this 
clause, a completed plan for achieving self-support which is not 
disapproved by the Board within 60 days after the date of submission 
shall be deemed to be approved by the Board until subsequently 
disapproved by the Board (with appropriate notification to the 
individual),'' after ``plan,''.
    (b) Amendment to Resource Exclusion Rule.--Section 1613(a)(4) of 
such Act (42 U.S.C. 1382b(a)(4)) is amended by inserting ``, and, for 
purposes of this paragraph, a completed plan for achieving self-support 
which is not disapproved by the Board within 60 days after the date of 
submission shall be deemed to be approved by the Board until 6 months 
after subsequently disapproved by the Board (with appropriate 
notification to the individual)'' after ``such plan''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 1995.

SEC. 226. TEMPORARY AUTHORITY TO APPROVE A LIMITED NUMBER OF PLANS FOR 
              ACHIEVING SELF-SUPPORT THAT INCLUDE HOUSING GOALS.

    (a) In General.--During the 42-month period that begins on January 
1, 1995, the Board may, under title XVI of the Social Security Act, 
approve not more than 20 percent of the plans for achieving self-
support that include a housing goal.
    (b) Report.--Within 12 months after the end of the 5-year period 
that begins on January 1, 1995, the Board shall submit to the Congress 
a report on the activities under subsection (a).

SEC. 227. REGULATIONS REGARDING COMPLETION OF PLANS FOR ACHIEVING SELF-
              SUPPORT.

    (a) In General.--Section 1633 of the Social Security Act (42 U.S.C. 
1383b) is amended by adding at the end the following:
    ``(d) The Board shall establish by regulation time limits and other 
criteria related to individuals' plans for achieving self-support, that 
take into account the difficulty of achieving self-support based on the 
needs of individuals and the goals of the plan.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on January 1, 1995.

SEC. 228. TREATMENT OF CERTAIN GRANT, SCHOLARSHIP, OR FELLOWSHIP INCOME 
              AS EARNED INCOME FOR SSI PURPOSES.

    (a) In General.--Section 1612(a)(1) of the Social Security Act (42 
U.S.C. 1382a(a)(1)) is amended--
            (1) by striking ``and'' at the end of subparagraph (D); and
            (2) by adding at the end the following:
                    ``(F) any grant, scholarship, or fellowship.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to eligibility and benefit determinations for any month that 
begins after the 2nd month after the month in which this Act is 
enacted.

SEC. 229. SSI ELIGIBILITY FOR STUDENTS TEMPORARILY ABROAD.

    (a) In General.--Section 1611(f) of the Social Security Act (42 
U.S.C. 1382(f)) is amended--
            (1) by inserting ``(1)'' after ``(f)''; and
            (2) by adding after and below the end the following:
    ``(2) The first sentence of paragraph (1) shall not apply to any 
individual who--
            ``(A) was eligible to receive a benefit under this title 
        for the month immediately preceding the first month during all 
        of which the individual was outside the United States; and
            ``(B) demonstrates to the satisfaction of the Board that 
        the absence of the individual from the United States is--
                    ``(i) temporary; and
                    ``(ii) for the purpose of conducting studies as 
                part of an educational program that is designed to 
                prepare the individual for gainful employment, and is 
                sponsored by a school, college, or university in the 
                United States.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on January 1, 1995.

SEC. 230. DISREGARD OF COST-OF-LIVING INCREASES FOR CONTINUED 
              ELIGIBILITY FOR WORK INCENTIVES.

    (a) In General.--Section 1619(b)(1)(B) of the Social Security Act 
(42 U.S.C. 1382h(b)(1)(B)) is amended by inserting ``and increases 
pursuant to section 215(i) in the level of monthly insurance benefits 
to which the individual is entitled under title II that occur while 
such individual is considered to be receiving supplemental security 
income benefits by reason of this subsection'' after ``earnings''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to eligibility determinations for months after December 1994.

SEC. 231. EXPANSION OF THE AUTHORITY OF THE SOCIAL SECURITY 
              ADMINISTRATION TO PREVENT, DETECT, AND TERMINATE 
              FRAUDULENT CLAIMS FOR SSI BENEFITS.

    (a) Prevention of Fraud in the SSI Program by Translators of 
Foreign Languages.--
            (1) In general.--Section 1631(e) of the Social Security Act 
        (42 U.S.C. 1383(e)) is amended by inserting after paragraph (3) 
        the following:
    ``(4) A translation into English by a third party of a statement 
made in a foreign language by an applicant for or recipient of benefits 
under this title shall not be regarded as reliable unless the third 
party, under penalty of perjury--
            ``(A) certifies that the translation is accurate; and
            ``(B) discloses the nature and scope of the relationship 
        between the third party and the applicant or recipient, as the 
        case may be.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on October 1, 1994.
    (b) Civil Monetary Penalties, Assessments, and Exclusions for Title 
XVI.--
            (1) In general.--Title XI of the Social Security Act (42 
        U.S.C. 1301-1320b-14) is amended by inserting after section 
        1128B the following:

``SEC. 1129. CIVIL MONETARY PENALTIES AND ASSESSMENTS FOR TITLE XVI.

    ``(a) Any person (including an organization, agency, or other 
entity) who makes, or causes to be made, a statement or representation 
of a material fact for use in determining any initial or continuing 
right to benefits or payments under title XVI that the person knows or 
should know is false or misleading or knows or should know omits a 
material fact shall be subject to, in addition to any other penalties 
that may be prescribed by law, a civil money penalty of not more than 
$5,000 for each such statement or representation. Such person also 
shall be subject to an assessment, in lieu of damages sustained by the 
United States because of such statement or representation, of not more 
than twice the amount of benefits or payments paid as a result of such 
a statement or representation. In addition, the Board may make a 
determination in the same proceeding to exclude the person from 
participation in the programs under title XVIII and to direct the 
appropriate State agency to exclude the person from participation in 
any State health care program.
    ``(b)(1) The Board may initiate a proceeding to determine whether 
to impose a civil money penalty, assessment, or exclusion under 
subsection (a) only as authorized by the Attorney General pursuant to 
procedures agreed upon by the Board and the Attorney General. The Board 
may not initiate an action under this section with respect to any 
violation described in subsection (a) later than 6 years after the date 
the violation was committed. The Board may initiate an action under 
this section by serving notice of the action in any manner authorized 
by Rule 4 of the Federal Rules of Civil Procedure.
    ``(2) The Board shall not make a determination adverse to any 
person under this section until the person has been given written 
notice and an opportunity for the determination to be made on the 
record after a hearing at which the person is entitled to be 
represented by counsel, to present witnesses, and to cross-examine 
witnesses against the person.
    ``(3) In a proceeding under this section which--
            ``(A) is against a person who has been convicted (whether 
        upon a verdict after trial or upon a plea of guilty or nolo 
        contendere) of a Federal crime charging fraud or false 
        statements; and
            ``(B) involves the same transaction as in the criminal 
        action;
the person is estopped from denying the essential elements of the 
criminal offense.
    ``(4) The official conducting a hearing under this section may 
sanction a person, including any party or attorney, for failing to 
comply with an order or procedure, failing to defend an action, or 
other misconduct as would interfere with the speedy, orderly, or fair 
conduct of the hearing. Such sanction shall reasonably relate to the 
severity and nature of the failure or misconduct. Such sanction may 
include--
            ``(A) in the case of refusal to provide or permit 
        discovery, drawing negative factual inference or treating such 
        refusal as an admission by deeming the matter, or certain 
        facts, to be established;
            ``(B) prohibiting a party from introducing certain evidence 
        or otherwise supporting a particular claim or defense;
            ``(C) striking pleadings, in whole or in part;
            ``(D) staying the proceedings;
            ``(E) dismissal of the action;
            ``(F) entering a default judgment;
            ``(G) ordering the party or attorney to pay attorneys' fees 
        and other costs caused by the failure or misconduct; and
            ``(H) refusing to consider any motion or other action which 
        is not filed in a timely manner.
    ``(c) In determining the amount or scope of any penalty, 
assessment, or exclusion imposed pursuant to this section, the Board 
shall take into account--
            ``(1) the nature of the statements and representations 
        referred to in subsection (a) and the circumstances under which 
        they occurred;
            ``(2) the degree of culpability, history of prior offenses, 
        and financial condition of the person committing the offense; 
        and
            ``(3) such other matters as justice may require.
    ``(d)(1) Any person adversely affected by a determination of the 
Board under this section may obtain a review of such determination in 
the United States Court of Appeals for the circuit in which the person 
resides, or in which the statement or representation referred to in 
subsection (a) was made, by filing in such court (within 60 days 
following the date the person is notified of the Board's determination) 
a written petition requesting that the determination be modified or set 
aside. A copy of the petition shall be forthwith transmitted by the 
clerk of the court to the Board, and thereupon the Board shall file in 
the court the record in the proceeding as provided in section 2112 of 
title 28, United States Code. Upon such filing, the court shall have 
jurisdiction of the proceeding and of the question determined therein, 
and shall have the power to make and enter upon the pleadings, 
testimony, and proceedings set forth in such record a decree affirming, 
modifying, remanding for further consideration, or setting aside, in 
whole or in part, the determination of the Board and enforcing the same 
to the extent that such order is affirmed or modified. No objection 
that has not been urged before the Board shall be considered by the 
court, unless the failure or neglect to urge such objection shall be 
excused because of extraordinary circumstances.
    ``(2) The findings of the Board with respect to questions of fact, 
if supported by substantial evidence on the record considered as a 
whole, shall be conclusive in the review described in paragraph (1). If 
any party shall apply to the court for leave to adduce additional 
evidence and shall show to the satisfaction of the court that such 
additional evidence is material and that there were reasonable grounds 
for the failure to adduce such evidence in the hearing before the 
Board, the court may order such additional evidence to be taken before 
the Board and to be made a part of the record. The Board may modify its 
findings as to the facts, or make new findings, by reason of additional 
evidence so taken and filed, and the Board shall file with the court 
such modified or new findings, which findings with respect to questions 
of fact, if supported by substantial evidence on the record considered 
as a whole shall be conclusive, and his recommendations, if any, for 
the modification or setting aside of his original order.
    ``(3) Upon the filing of the record with the Board's original or 
modified order, the jurisdiction of the court shall be exclusive and 
its judgment and decree shall be final, except that the same shall be 
subject to review by the Supreme Court of the United States, as 
provided in section 1254 of title 28, United States Code.
    ``(e)(1) Civil money penalties and assessments imposed under this 
section may be compromised by the Board and may be recovered--
            ``(A) in a civil action in the name of the United States 
        brought in United States district court for the district where 
        the statement or representation referred to in subsection (a) 
        was made, or where the person resides, as determined by the 
        Board;
            ``(B) by means of reduction in tax refunds to which the 
        person is entitled, based on notice to the Secretary of the 
        Treasury as permitted under section 3720A of title 31, United 
        States Code;
            ``(C) by decrease of any payment under title XVI to which 
        the person is entitled, notwithstanding section 207 of this 
        Act, as made applicable to this title by reason of section 
        1631(d)(1);
            ``(D) by authorities provided under the Debt Collection Act 
        of 1982, as amended, to the extent applicable to debts arising 
        under the Social Security Act;
            ``(E) by deduction of the amount of such penalty or 
        assessment, when finally determined, or the amount agreed upon 
        in compromise, from any sum then or later owing by the United 
        States to the person against whom the penalty or assessment has 
        been assessed; or
            ``(F) by any combination of the foregoing.
    ``(f) A determination by the Board to impose a penalty, assessment, 
or exclusion under this section shall be final upon the expiration of 
the 60-day period referred to in subsection (d). Matters that were 
raised or that could have been raised in a hearing before the Board or 
in an appeal pursuant to subsection (d) may not be raised as a defense 
to a civil action by the United States to collect a penalty and 
assessment imposed under this section.
    ``(g) Whenever the Board's determination to impose a penalty, 
assessment, or exclusion under this section with respect to a medical 
provider or physician becomes final, the provisions of section 1128A(h) 
shall apply.
    ``(h) Whenever the Board has reason to believe that any person has 
engaged, is engaging, or is about to engage in any activity which makes 
the person subject to a civil monetary penalty under this section, the 
Board may bring an action in an appropriate district court of the 
United States (or, if applicable, a United States court of any 
territory) to enjoin such activity, or to enjoin the person from 
concealing, removing, encumbering, or disposing of assets which may be 
required in order to pay a civil monetary penalty and assessment if any 
such penalty were to be imposed or to seek other appropriate relief.
    ``(i)(1) The provisions of subsections (d) and (e) of section 205 
shall apply with respect to this section to the same extent as they are 
applicable with respect to title II. The Board may delegate the 
authority granted by section 205(d) (as made applicable to this 
section) to the Inspector General of the Department of Health and Human 
Services for purposes of any investigation under this section.
    ``(2) The Board may delegate authority granted under this section 
to the Inspector General of the Social Security Administration.
    ``(j) For purposes of this section, the term `State agency' shall 
have the same meaning as in section 1128A(i)(1).
    ``(k) A principal is liable for penalties, assessments, and 
exclusions under this section for the actions of the principal's agent 
acting within the scope of the agency.''.
            (2) Conforming amendments.--Section 1128 of such Act (42 
        U.S.C. 1320a-7) is amended--
                    (A) in subsection (b)(7), by striking ``or section 
                1128B'' and inserting ``, section 1128B, or section 
                1129'';
                    (B) in subsection (b)(8)(B)(ii), by inserting ``and 
                section 1129'' after ``section 1128A'';
                    (C) in subsection (c)(1), by striking ``or under 
                section 1128A'' and inserting ``, section 1128A, or 
                section 1129'';
                    (D) in subsection (c)(3)(A), by inserting ``or 
                section 1129'' after ``section 1128A'';
                    (E) in subsection (d)(1), by striking ``and section 
                1128A'' and inserting ``, section 1128A, and section 
                1129'';
                    (F) in subsection (d)(2)(A), by striking ``or 
                section 1128A'' and inserting ``, section 1128A, or 
                section 1129'';
                    (G) in subsection (e)(1), by striking ``or section 
                1128A'' and inserting ``, section 1128A, or section 
                1129'';
                    (H) in subsection (f)(3), by inserting ``, 1129,'' 
                after ``sections 1128A'';
                    (I) in subsection (g)(1), by striking ``or section 
                1128A'' each place such term appears and inserting ``, 
                section 1128A, or section 1129'';
                    (J) in subsection (g)(2)(A), by inserting ``and 
                section 1129(a)'' after ``section 1128A(a)''; and
                    (K) in subsection (h), by striking ``1128A and 
                1128B'' and inserting ``1128A, 1128B, and 1129''.
    (c) SSI Fraud Considered a Felony.--
            (1) In general.--Section 1632(a) of the Social Security Act 
        (42 U.S.C. 1383a(a)) is amended by striking ``shall'' the 1st 
        place such term appears and all that follows and inserting 
        ``shall be fined under title 18, United States Code, imprisoned 
        not more than 5 years, or both.''.
            (2) Conforming amendment.--Section 1632(b) of such Act (42 
        U.S.C. 1383a(b)) is amended to read as follows:
    ``(b)(1) If a person or entity violates subsection (a) in the 
person's or entity's role as, or in applying to become, a payee under 
section 1631(a)(2) on behalf of another individual (other than the 
person's eligible spouse), and the violation includes a willful misuse 
of funds by the person or entity, the court may also require that full 
or partial restitution of funds be made to such other individual.
    ``(2) Any person or entity convicted of a violation of subsection 
(a) of this section or of section 208 may not be certified as a payee 
under section 1631(a)(2).''.
    (d) Authority to Redetermine Eligibility in Disability Cases if 
Fraud is Involved, and to Terminate Benefits if There is Insufficient 
Reliable Evidence of Disability.--
            (1) In general.--Section 1631(e) of the Social Security Act 
        (42 U.S.C. 1383(e)) is amended by adding at the end the 
        following:
    ``(6)(A) The Board shall immediately redetermine the eligibility of 
an individual for benefits under this title by reason of disability, 
disregarding any unreliable evidence of disability, if there is reason 
to believe that fraud was involved in the application of the individual 
for such benefits, unless a United States attorney, or equivalent State 
prosecutor, with jurisdiction over potential or actual related criminal 
cases, certifies, in writing, that there is a substantial risk that 
redetermining such eligibility would jeopardize the criminal 
prosecution of any person who is a subject of the investigation from 
which the information is derived.
    ``(B) If, after redetermining the eligibility of an individual for 
benefits under this title by reason of disability, the Board determines 
that there is insufficient reliable evidence of disability, the Board 
may terminate such eligibility.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on October 1, 1994, and shall apply to 
        eligibility determinations made before, on, or after such date.
    (e) Availability of Recipient Identifying Information From the 
Inspector General, Social Security Administration.--
            (1) In general.--Section 1631(e) of the Social Security Act 
        (42 U.S.C. 1383(e)), as amended by subsection (d) of this 
        section, is amended by adding at the end the following:
    ``(7) As soon as the Inspector General, Social Security 
Administration, has reason to believe that fraud was involved in the 
application of a recipient for benefits under this title, the Inspector 
General shall make available to the Board information identifying the 
recipient, unless a United States attorney, or equivalent State 
prosecutor, with jurisdiction over potential or actual related criminal 
cases, certifies, in writing, that there is a substantial risk that 
making the information so available or redetermining the eligibility of 
the recipient for such benefits would jeopardize the criminal 
prosecution of any person who is a subject of the investigation from 
which the information is derived.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on October 1, 1994.
    (f) Authority to Use Available Preadmission Immigrant and Refugee 
Medical Information.--
            (1) In general.--Section 1631(e) of the Social Security Act 
        (42 U.S.C. 1383(e)), as amended by the preceding provisions of 
        this Act, is amended by adding at the end the following:
    ``(8) The Board shall request the Immigration and Naturalization 
Service and the Centers for Disease Control to provide the Board with 
whatever medical information either such entity has with respect to any 
alien who has applied for benefits under this title to the extent that 
the information is relevant to any determination relating to such 
eligibility.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on October 1, 1994.
    (g) Annual Reports on Reviews of SSI Cases.--The Board shall 
annually submit to the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate a report on 
the extent to which the Board has exercised its authority to review 
supplemental security income cases under title XVI of the Social 
Security Act, and the extent to which the cases reviewed were those 
that involved a high likelihood or probability of fraud.

SEC. 232. DISABILITY REVIEW REQUIRED FOR SSI RECIPIENTS WHO ARE 18 
              YEARS OF AGE.

    (a) In General.--Section 1614(a)(3)(G) of the Social Security Act 
(42 U.S.C. 1382c(a)(3)(G)) is amended--
            (1) by inserting ``(i)'' after ``(G)''; and
            (2) by adding after and below the end the following:
    ``(ii)(I) During the 1-year period that begins on the date a 
recipient of benefits under this title by reason of disability attains 
18 years of age, the applicable State agency or the Board (as may be 
appropriate) shall redetermine the eligibility of the recipient for 
such benefits by reason of disability, by applying the criteria used in 
determining eligibility for such benefits of applicants who have 
attained 18 years of age.
    ``(II) A review under subclause (I) of this clause shall be 
considered a substitute for a review required under clause (i).''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to individuals who attain 18 years of age in or after the 9th 
month after the month in which this Act is enacted.

SEC. 233. CONTINUING DISABILITY REVIEWS.

    (a) In General.--Section 1614(a)(3)(G) of such Act (42 U.S.C. 
1382c(a)(3)(G)) is amended by inserting ``221(i),'' after ``221(h),''.
    (b) Effective Date.--The amendment made by subsection (A) shall 
take effect on October 1, 1995.

SEC. 234. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) Amendments to Title II of the Social Security Act.--
            (1) Section 201(a) of the Social Security Act (42 U.S.C. 
        401(a)) is amended, in the matter following clause (4), by 
        striking ``and and'' and inserting ``and''.
            (2) Section 202(d)(8)(D)(ii) of such Act (42 U.S.C. 
        402(d)(8)(D)(ii)) is amended by adding a period at the end and 
        by adjusting the left hand margination thereof so as to align 
        with section 202(d)(8)(D)(i) of such Act.
            (3) Section 202(q)(1)(A) of such Act (42 U.S.C. 
        402(q)(1)(A)) is amended by striking the dash at the end.
            (4) Section 202(q)(9) of such Act (42 U.S.C. 402(q)(9)) is 
        amended, in the matter preceding subparagraph (A), by striking 
        ``parargaph'' and inserting ``paragraph''.
            (5) Section 202(t)(4)(D) of such Act (42 U.S.C. 
        402(t)(4)(D)) is amended by inserting ``if the'' before 
        ``Secretary'' the second and third places it appears.
            (6) Clauses (i) and (ii) of section 203(f)(5)(C) of such 
        Act (42 U.S.C. 403(f)(5)(C)) are amended by adjusting the left-
        hand margination thereof so as to align with clauses (i) and 
        (ii) of section 203(f)(5)(B) of such Act.
            (7) Paragraph (3)(A) and paragraph (3)(B) of section 205(b) 
        of such Act (42 U.S.C. 405(b)) are amended by adjusting the 
        left-hand margination thereof so as to align with the matter 
        following section 205(b)(2)(C) of such Act.
            (8) Section 205(c)(2)(B)(iii) of such Act (42 U.S.C. 
        405(c)(2)(B)(iii)) is amended by striking ``non-public'' and 
        inserting ``nonpublic''.
            (9) Section 205(c)(2)(C) of such Act (42 U.S.C. 
        405(c)(2)(C)) is amended--
                    (A) by striking the clause (vii) added by section 
                2201(c) of Public Law 101-624;
                    (B) by redesignating the clause (iii) added by 
                section 2201(b)(3) of Public Law 101-624, clause (iv), 
                clause (v), clause (vi), and the clause (vii) added by 
                section 1735(b) of Public Law 101-624 as clause (iv), 
                clause (v), clause (vi), clause (vii), and clause 
                (viii), respectively;
                    (C) in clause (v) (as redesignated), by striking 
                ``subclause (I) of'', and by striking ``subclause (II) 
                of clause (i)'' and inserting ``clause (ii)''; and
                    (D) in clause (viii)(IV) (as redesignated), by 
                inserting ``a social security account number or'' 
                before ``a request for''.
            (10) The heading for section 205(j) of such Act (42 U.S.C. 
        405(j)) is amended to read as follows:

                       ``Representative Payees''.

            (11) The heading for section 205(s) of such Act (42 U.S.C. 
        405(s)) is amended to read as follows:

                        ``Notice Requirements''.

            (12) Section 208(c) of such Act (42 U.S.C. 408(c)) is 
        amended by striking ``subsection (g)'' and inserting 
        ``subsection (a)(7)''.
            (13) Section 210(a)(5)(B)(i)(V) of such Act (42 U.S.C. 
        410(a)(5)(B)(i)(V)) is amended by striking ``section 
        105(e)(2)'' and inserting ``section 104(e)(2)''.
            (14) Section 211(a) of such Act (42 U.S.C. 411(a)) is 
        amended--
                    (A) in paragraph (13), by striking ``and'' at the 
                end; and
                    (B) in paragraph (14), by striking the period and 
                inserting ``; and''.
            (15) Section 213(c) of such Act (42 U.S.C. 413(c)) is 
        amended by striking ``section'' the first place it appears and 
        inserting ``sections''.
            (16) Section 215(a)(5)(B)(i) of such Act (42 U.S.C. 
        415(a)(5)(B)(i)) is amended by striking ``subsection'' the 
        second place it appears and inserting ``subsections''.
            (17) Section 215(f)(7) of such Act (42 U.S.C. 415(f)(7)) is 
        amended by inserting a period after ``1990''.
            (18) Subparagraph (F) of section 218(c)(6) of such Act (42 
        U.S.C. 418(c)(6)) is amended by adjusting the left-hand 
        margination thereof so as to align with section 218(c)(6)(E) of 
        such Act.
            (19) Section 223(i) of such Act (42 U.S.C. 423(i)) is 
        amended by adding at the beginning the following heading:

                ``Limitation on Payments to Prisoners''.

    (b) Related Amendments.--
            (1) Section 603(b)(5)(A) of Public Law 101-649 (amending 
        section 202(n)(1) of the Social Security Act) (104 Stat. 5085) 
        is amended by inserting ``under'' before ``paragraph (1),'' and 
        by striking ``(17), or (18)'' and inserting ``(17), (18), or 
        (19)'', effective as if this paragraph were included in such 
        section 603(b)(5)(A).
            (2) Section 10208(b)(1) of Public Law 101-239 (amending 
        section 230(b)(2)(A) of the Social Security Act) (103 Stat. 
        2477) is amended by striking ``230(b)(2)(A)'' and 
        ``430(b)(2)(A)'' and inserting ``230(b)(2)'' and ``430(b)(2)'', 
        respectively, effective as if this paragraph were included in 
        such section 10208(b)(1).
    (c) Conforming, Clerical Amendments Updating, Without Substantive 
Change, References in Title II of the Social Security Act to the 
Internal Revenue Code.--
            (1)(A)(i) Section 201(g)(1) of such Act (42 U.S.C. 
        401(g)(1)) is amended--
                    (I) in subparagraph (A)(i), by striking ``and 
                subchapter E'' and all that follows through ``1954'' 
                and inserting ``and chapters 2 and 21 of the Internal 
                Revenue Code of 1986'';
                    (II) in subparagraph (A)(ii), by striking ``1954'' 
                and inserting ``1986'';
                    (III) in the matter in subparagraph (A) following 
                clause (ii), by striking ``subchapter E'' and all that 
                follows through ``1954.'' and inserting ``chapters 2 
                and 21 of the Internal Revenue Code of 1986.'', and by 
                striking ``1954 other'' and inserting ``1986 other''; 
                and
                    (IV) in subparagraph (B), by striking ``1954'' each 
                place it appears and inserting ``1986''.
            (ii) The amendments made by clause (i) shall apply only 
        with respect to periods beginning on or after the date of the 
        enactment of this Act.
            (B)(i) Section 201(g)(2) of such Act (42 U.S.C. 401(g)(2)) 
        is amended by striking ``section 3101(a)'' and all that follows 
        through ``1950.'' and inserting ``section 3101(a) of the 
        Internal Revenue Code of 1986 which are subject to refund under 
        section 6413(c) of such Code with respect to wages (as defined 
        in section 3121 of such Code).'', and by striking ``wages 
        reported'' and all that follows through ``1954,'' and inserting 
        ``wages reported to the Secretary of the Treasury or his 
        delegate pursuant to subtitle F of such Code,''.
            (ii) The amendments made by clause (i) shall apply only 
        with respect to wages paid on or after January 1, 1995.
            (C) Section 201(g)(4) of such Act (42 U.S.C. 401(g)(4)) is 
        amended--
                    (i) by striking ``The Board of Trustees shall 
                prescribe before January 1, 1981, the method'' and 
                inserting ``If at any time or times the Boards of 
                Trustees of such Trust Funds deem such action 
                advisable, they may modify the method prescribed by 
                such Boards'';
                    (ii) by striking ``1954'' and inserting ``1986''; 
                and
                    (iii) by striking the last sentence.
            (2) Section 202(v) of such Act (42 U.S.C. 402(v)) is 
        amended--
                    (A) in paragraph (1), by striking ``1954'' and 
                inserting ``1986''; and
                    (B) in paragraph (3)(A), by inserting ``of the 
                Internal Revenue Code of 1986'' after ``3127''.
            (3) Section 205(c)(5)(F)(i) of such Act (42 U.S.C. 
        405(c)(5)(F)(i)) is amended by inserting ``or the Internal 
        Revenue Code of 1986'' after ``1954''.
            (4)(A) Section 209(a)(4)(A) of such Act (42 U.S.C. 
        409(a)(4)(A)) is amended by inserting ``or the Internal Revenue 
        Code of 1986'' after ``Internal Revenue Code of 1954''.
            (B) Section 209(a) of such Act (42 U.S.C. 409(a)) is 
        amended--
                    (i) in subparagraphs (C) and (E) of paragraph (4),
                    (ii) in paragraph (5)(A),
                    (iii) in subparagraphs (A) and (B) of paragraph 
                (14),
                    (iv) in paragraph (15),
                    (v) in paragraph (16), and
                    (vi) in paragraph (17),
        by striking ``1954'' each place it appears and inserting 
        ``1986''.
            (C) Subsections (b), (f), (g), (i)(1), and (j) of section 
        209 of such Act (42 U.S.C. 409) are amended by striking 
        ``1954'' each place it appears and inserting ``1986''.
            (5) Section 211(a)(15) of such Act (42 U.S.C. 411(a)(15)) 
        is amended by inserting ``of the Internal Revenue Code of 
        1986'' after ``section 162(m)''.
            (6) Title II of such Act is further amended--
                    (A) in subsections (f)(5)(B)(ii) and (k) of section 
                203 (42 U.S.C. 403),
                    (B) in section 205(c)(1)(D)(i) (42 U.S.C. 
                405(c)(1)(D)(i)),
                    (C) in the matter in section 210(a) (42 U.S.C. 
                410(a)) preceding paragraph (1) and in paragraphs (8), 
                (9), and (10) of section 210(a),
                    (D) in subsections (p)(4) and (q) of section 210 
                (42 U.S.C. 410),
                    (E) in the matter in section 211(a) (42 U.S.C. 
                411(a)) preceding paragraph (1) and in paragraphs (3), 
                (4), (6), (10), (11), and (12) and clauses (iii) and 
                (iv) of section 211(a),
                    (F) in the matter in section 211(c) (42 U.S.C. 
                411(c)) preceding paragraph (1), in paragraphs (3) and 
                (6) of section 211(c), and in the matter following 
                paragraph (6) of section 211(c),
                    (G) in subsections (d), (e), and (h)(1)(B) of 
                section 211 (42 U.S.C. 411),
                    (H) in section 216(j) (42 U.S.C. 416(j)),
                    (I) in section 218(e)(3) (42 U.S.C. 418(e)(3)),
                    (J) in section 229(b) (42 U.S.C. 429(b)),
                    (K) in section 230(c) (42 U.S.C. 430(c)), and
                    (L) in section 232 (42 U.S.C. 432),
        by striking ``1954'' each place it appears and inserting 
        ``1986''.
    (d) Rules of Construction.--
            (1) The preceding provisions of this section shall be 
        construed only as technical and clerical corrections and as 
        reflecting the original intent of the provisions amended 
        thereby.
            (2) Any reference in title II of the Social Security Act to 
        the Internal Revenue Code of 1986 shall be construed to include 
        a reference to the Internal Revenue Code of 1954 to the extent 
        necessary to carry out the provisions of paragraph (1).
    (e) Utilization of National Average Wage Index for Wage-Based 
Adjustments.--
            (1) Definition of national average wage index.--Section 
        209(k) of the Social Security Act (42 U.S.C. 409(k)) is 
        amended--
                    (A) by redesignating paragraph (2) as paragraph 
                (3);
                    (B) in paragraph (3) (as redesignated), by striking 
                ``paragraph (1)'' and inserting ``this subsection''; 
                and
                    (C) by striking paragraph (1) and inserting the 
                following new paragraphs:
    ``(k)(1) For purposes of sections 203(f)(8)(B)(ii), 213(d)(2)(B), 
215(a)(1)(B)(ii), 215(a)(1)(C)(ii), 215(a)(1)(D), 215(b)(3)(A)(ii), 
215(i)(1)(E), 215(i)(2)(C)(ii), 224(f)(2)(B), and 230(b)(2) (and 
230(b)(2) as in effect immediately prior to the enactment of the Social 
Security Amendments of 1977), the term `national average wage index' 
for any particular calendar year means, subject to regulations of the 
Secretary under paragraph (2), the average of the total wages for such 
particular calendar year.
    ``(2) The Secretary shall prescribe regulations under which the 
national average wage index for any calendar year shall be computed--
            ``(A) on the basis of amounts reported to the Secretary of 
        the Treasury or his delegate for such year,
            ``(B) by disregarding the limitation on wages specified in 
        subsection (a)(1),
            ``(C) with respect to calendar years after 1990, by 
        incorporating deferred compensation amounts and factoring in 
        for such years the rate of change from year to year in such 
        amounts, in a manner consistent with the requirements of 
        section 10208 of the Omnibus Budget Reconciliation Act of 1989, 
        and
            ``(D) with respect to calendar years before 1978, in a 
        manner consistent with the manner in which the average of the 
        total wages for each of such calendar years was determined as 
        provided by applicable law as in effect for such years.''.
            (2) Conforming amendments.--
                    (A) Section 213(d)(2)(B) of such Act (42 U.S.C. 
                413(d)(2)(B)) is amended by striking ``deemed average 
                total wages'' and inserting ``national average wage 
                index'', and by striking ``the average of the total 
                wages'' and all that follows and inserting ``the 
                national average wage index (as so defined) for 
                1976,''.
                    (B) Section 215(a)(1)(B)(ii) of such Act (42 U.S.C. 
                415(a)(1)(B)(ii)) is amended--
                            (i) in subclause (I), by striking ``deemed 
                        average total wages'' and inserting ``national 
                        average wage index''; and
                            (ii) in subclause (II), by striking ``the 
                        average of the total wages'' and all that 
                        follows and inserting ``the national average 
                        wage index (as so defined) for 1977.''.
                    (C) Section 215(a)(1)(C)(ii) of such Act (42 U.S.C. 
                415(a)(1)(C)(ii)) is amended by striking ``deemed 
                average total wages'' and inserting ``national average 
                wage index''.
                    (D) Section 215(a)(1)(D) of such Act (42 U.S.C. 
                415(a)(1)(D)) is amended--
                            (i) by striking ``after 1978'';
                            (ii) by striking ``and the average of the 
                        total wages (as described in subparagraph 
                        (B)(ii)(I))'' and inserting ``and the national 
                        average wage index (as defined in section 
                        209(k)(1))''; and
                            (iii) by striking the last sentence.
                    (E) Section 215(b)(3)(A)(ii) of such Act (42 U.S.C. 
                415(b)(3)(A)(ii)) is amended by striking ``deemed 
                average total wages'' each place it appears and 
                inserting ``national average wage index''.
                    (F) Section 215(i)(1) of such Act (42 U.S.C. 
                415(i)(1)) is amended--
                            (i) in subparagraph (E), by striking ``SSA 
                        average wage index'' and inserting ``national 
                        average wage index (as defined in section 
                        209(k)(1))''; and
                            (ii) by striking subparagraph (G) and 
                        redesignating subparagraph (H) as subparagraph 
                        (G).
                    (G) Section 215(i)(2)(C)(ii) of such Act (42 U.S.C. 
                415(i)(1)(C)(ii)) is amended to read as follows:
    ``(ii) The Secretary shall determine and promulgate the OASDI fund 
ratio for the current calendar year on or before November 1 of the 
current calendar year, based upon the most recent data then available. 
The Secretary shall include a statement of the fund ratio and the 
national average wage index (as defined in section 209(k)(1)) and a 
statement of the effect such ratio and the level of such index may have 
upon benefit increases under this subsection in any notification made 
under clause (i) and any determination published under subparagraph 
(D).''.
                    (H) Section 224(f)(2) of such Act (42 U.S.C. 
                424a(f)(2)) is amended--
                            (i) in subparagraph (A), by adding ``and'' 
                        at the end;
                            (ii) by striking subparagraph (C); and
                            (iii) by striking subparagraph (B) and 
                        inserting the following:
            ``(B) the ratio of (i) the national average wage index (as 
        defined in section 209(k)(1)) for the calendar year before the 
        year in which such redetermination is made to (ii) the national 
        average wage index (as so defined) for the calendar year before 
        the year in which the reduction was first computed (but not 
        counting any reduction made in benefits for a previous period 
        of disability).''.
    (f) Technical Corrections Related to OASDI in the Omnibus Budget 
Reconciliation Act of 1990.--
            (1) Amendments related to provisions in section 5103(b) 
        relating to disabled widows.--Section 223(f)(2) of the Social 
        Security Act (42 U.S.C. 423(f)(2)) is amended--
                    (A) in subparagraph (A), by striking ``(in a case 
                to which clause (ii)(II) does not apply)''; and
                    (B) by striking subparagraph (B)(ii) and inserting 
                the following:
                            ``(ii) the individual is now able to engage 
                        in substantial gainful activity; or''.
            (2) Amendments related to provisions in section 5105(d) 
        relating to representative payees.--
                    (A) Title ii amendments.--Section 5105(d)(1)(A) of 
                the Omnibus Budget Reconciliation Act of 1990 (Public 
                Law 101-508) is amended--
                            (i) by striking ``Section 205(j)(5)'' and 
                        inserting ``Section 205(j)(6)''; and
                            (ii) by redesignating the paragraph (5) as 
                        amended thereby as paragraph (6).
                    (B) Title xvi amendments.--Section 1631(a)(2) of 
                the Social Security Act (42 U.S.C. 1383(a)(2)) is 
                amended--
                            (i) by redesignating subparagraphs (E) and 
                        (F) as subparagraphs (F) and (G), respectively; 
                        and
                            (ii) by inserting after subparagraph (D) 
                        the following:
    ``(E) Restitution.--In cases where the negligent failure of the 
Secretary to investigate or monitor a representative payee results in 
misuse of benefits by the representative payee, the Secretary shall 
make payment to the beneficiary or the beneficiary's representative 
payee of an amount equal to such misused benefits. The Secretary shall 
make a good faith effort to obtain restitution from the terminated 
representative payee.''.
            (3) Amendments related to provisions in section 5106 
        relating to coordination of rules under titles ii and xvi 
        governing fees for representatives of claimants with 
        entitlements under both titles.--
                    (A) Calculation of fee of claimant's representative 
                based on amount of past-due supplemental security 
                income benefits after application of windfall offset 
                provision.--Section 1631(d)(2)(A)(i) of the Social 
                Security Act (as amended by section 5106(a)(2) of the 
                Omnibus Budget Reconciliation Act of 1990) (42 U.S.C. 
                1383(d)(2)(A)(i)) is amended to read as follows:
            ``(i) by substituting, in subparagraphs (A)(ii)(I) and 
        (C)(i), the phrase `(as determined before any applicable 
        reduction under section 1631(g), and reduced by the amount of 
        any reduction in benefits under this title or title II made 
        pursuant to section 1127(a))' for the parenthetical phrase 
        contained therein; and''.
                    (B) Calculation of past-due benefits for purposes 
                of determining attorney fees in judicial proceedings.--
                            (i) In general.--Section 206(b)(1) of such 
                        Act (42 U.S.C. 406(b)(1)) is amended--
                                    (I) by inserting ``(A)'' after 
                                ``(b)(1)''; and
                                    (II) by adding at the end the 
                                following new subparagraph:
    ``(B) For purposes of this paragraph--
            ``(i) the term `past-due benefits' excludes any benefits 
        with respect to which payment has been continued pursuant to 
        subsection (g) or (h) of section 223, and
            ``(ii) amounts of past-due benefits shall be taken into 
        account to the extent provided under the rules applicable in 
        cases before the Secretary.''.
                            (ii) Protection from offsetting ssi 
                        benefits.--The last sentence of section 1127(a) 
                        of such Act (as added by section 5106(b) of the 
                        Omnibus Budget Reconciliation Act of 1990) (42 
                        U.S.C. 1320a-6(a)) is amended by striking 
                        ``section 206(a)(4)'' and inserting 
                        ``subsection (a)(4) or (b) of section 206''.
            (4) Application of single dollar amount ceiling to 
        concurrent claims under titles ii and xvi.--
                    (A) In general.--Section 206(a)(2) of such Act (as 
                amended by section 5106(a)(1) of the Omnibus Budget 
                Reconciliation Act of 1990) (42 U.S.C. 406(a)(2)) is 
                amended--
                            (i) by redesignating subparagraph (C) as 
                        subparagraph (D); and
                            (ii) by inserting after subparagraph (B) 
                        the following new subparagraph:
    ``(C) In any case involving--
            ``(i) an agreement described in subparagraph (A) with any 
        person relating to both a claim of entitlement to past-due 
        benefits under this title and a claim of entitlement to past-
        due benefits under title XVI, and
            ``(ii) a favorable determination made by the Secretary with 
        respect to both such claims,
the Secretary may approve such agreement only if the total fee or fees 
specified in such agreement does not exceed, in the aggregate, the 
dollar amount in effect under subparagraph (A)(ii)(II).''.
                    (B) Conforming amendment.--Section 206(a)(3)(A) of 
                such Act (as amended by section 5106(a)(1) of the 
                Omnibus Budget Reconciliation Act of 1990) (42 U.S.C. 
                406(a)(3)(A)) is amended by striking ``paragraph 
                (2)(C)'' and inserting ``paragraph (2)(D)''.
            (5) Effective date.--Each amendment made by this section 
        shall take effect as if included in the provisions of the 
        Omnibus Budget Reconciliation Act of 1990 to which such 
        amendment relates.
    (g) Elimination of Rounding Distortion in the Calculation of the 
Old-Age, Survivors, and Disability Insurance Contribution and Benefit 
Base and the Earnings Test Exempt Amounts.--
            (1) Adjustment of oasdi contribution and benefit base.--
                    (A) In general.--Section 230(b) of the Social 
                Security Act (42 U.S.C. 430(b)) is amended by striking 
                paragraphs (1) and (2) and inserting the following:
            ``(1) $60,600, and
            ``(2) the ratio of (A) the national average wage index (as 
        defined in section 209(k)(1)) for the calendar year before the 
        calendar year in which the determination under subsection (a) 
        is made to (B) the national average wage index (as so defined) 
        for 1992,''.
                    (B) Conforming amendment relating to applicable 
                prior law.--Section 230(d) of such Act (42 U.S.C. 
                430(d)) is amended by striking ``(except that'' and all 
                that follows through the end and inserting ``(except 
                that, for purposes of subsection (b) of such section 
                230 as so in effect, the reference to the contribution 
                and benefit base in paragraph (1) of such subsection 
                (b) shall be deemed a reference to an amount equal to 
                $45,000, each reference in paragraph (2) of such 
                subsection (b) to the average of the wages of all 
                employees as reported to the Secretary of the Treasury 
                shall be deemed a reference to the national average 
                wage index (as defined in section 209(k)(1)), the 
                reference to a preceding calendar year in paragraph 
                (2)(A) of such subsection (b) shall be deemed a 
                reference to the calendar year before the calendar year 
                in which the determination under subsection (a) of such 
                section 230 is made, and the reference to a calendar 
                year in paragraph (2)(B) of such subsection (b) shall 
                be deemed a reference to 1992).''.
                    (C) Adjustment of contribution and benefit base 
                applicable in determining years of coverage for 
                purposes of special minimum primary insurance amount.--
                Section 215(a)(1)(C)(ii) of such Act is amended by 
                striking ``(except that'' and all that follows through 
                the end and inserting ``(except that, for purposes of 
                subsection (b) of such section 230 as so in effect, the 
                reference to the contribution and benefit base in 
                paragraph (1) of such subsection (b) shall be deemed a 
                reference to an amount equal to $45,000, each reference 
                in paragraph (2) of such subsection (b) to the average 
                of the wages of all employees as reported to the 
                Secretary of the Treasury shall be deemed a reference 
                to the national average wage index (as defined in 
                section 209(k)(1)), the reference to a preceding 
                calendar year in paragraph (2)(A) of such subsection 
                (b) shall be deemed a reference to the calendar year 
                before the calendar year in which the determination 
                under subsection (a) of such section 230 is made, and 
                the reference to a calendar year in paragraph (2)(B) of 
                such subsection (b) shall be deemed a reference to 
                1992).''.
            (2) Adjustment of earnings test exempt amount.--Section 
        203(f)(8)(B)(ii) of the Social Security Act (42 U.S.C. 
        403(f)(8)(B)(ii)) is amended to read as follows:
                    ``(ii) the product of the corresponding exempt 
                amount which is in effect with respect to months in the 
                taxable year ending after 1993 and before 1995, and the 
                ratio of--
                            ``(I) the national average wage index (as 
                        defined in section 209(k)(1)) for the calendar 
                        year before the calendar year in which the 
                        determination under subparagraph (A) is made, 
                        to
                            ``(II) the national average wage index (as 
                        so defined) for 1992,
                with such product, if not a multiple of $10, being 
                rounded to the next higher multiple of $10 where such 
                product is a multiple of $5 but not of $10 and to the 
                nearest multiple of $10 in any other case.''.
            (3) Effective dates.--
                    (A) The amendments made by subsection (a) shall be 
                effective with respect to the determination of the 
                contribution and benefit base for years after 1994.
                    (B) The amendment made by subsection (b) shall be 
                effective with respect to the determination of the 
                exempt amounts applicable to any taxable year ending 
                after 1994.

            Passed the House of Representatives May 17, 1994.

            Attest:






                                                                 Clerk.

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