H. R. 4277

One Hundred Third Congress

of the

United States of America

AT THE SECOND SESSION

Begun and held at the City of Washington on Tuesday,

the twenty-fifth day of January, one thousand nine hundred and ninety-four

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

Independence and Program Improvements Act of 1994’’.

(b) TABLE OF CONTENTS.—The table of contents of this Act

is as follows:

Sec. 1. Short title and table of contents.

TITLE I—ESTABLISHMENT OF THE SOCIAL SECURITY ADMINISTRATION

AS AN INDEPENDENT AGENCY

Sec. 101. Establishment of Social Security Administration as an independent

agency.

Sec. 102. Commissioner and Deputy Commissioner; other officers.

Sec. 103. Social Security Advisory Board.

Sec. 104. Personnel; budgetary matters; seal of office.

Sec. 105. Transfers to the new Social Security Administration.

Sec. 106. Transition rules.

Sec. 107. Conforming amendments to titles II and XVI of the Social Security Act.

Sec. 108. Additional conforming amendments.

Sec. 109. Rules of construction.

Sec. 110. Effective dates.

TITLE II—PROGRAM IMPROVEMENTS RELATING TO OASDI AND SSI

Sec. 201. Restrictions on payment of benefits based on disability to substance abusers. Sec. 202. Commission on childhood disability.

Sec. 203. Regulations regarding completion of plans for achieving self-support.

Sec. 204. SSI eligibility for students temporarily abroad.

Sec. 205. Disregard of cost-of-living increases for continued eligibility for work incentives.

Sec. 206. Expansion of the authority of the Social Security Administration to prevent, detect, and terminate fraudulent claims for OASDI and SSI benefits.

Sec. 207. Disability review required for SSI recipients who are 18 years of age.

Sec. 208. Continuing disability reviews.

Sec. 209. Exemption from adjustment in pass-along requirements.

TITLE III—MISCELLANEOUS PROGRAM IMPROVEMENTS

Sec. 301. Issuance of physical documents in the form of bonds, notes, or certificates

to the social security trust funds.

Sec. 302. GAO study regarding telephone access to local offices of the Social Security Administration.

Sec. 303. Expansion of State option to exclude service of election officials or election

workers from coverage.

Sec. 304. Use of social security numbers by States and local governments and Federal district courts for jury selection purposes.
H. R. 4277—2

Sec. 305. Authorization for all States to extend coverage to State and local police

officers and firefighters under existing coverage agreements. Sec. 306. Limited exemption for Canadian ministers from certain self-employment

tax liability. Sec. 307. Exclusion of totalization benefits from the application of the windfall

elimination provision. Sec. 308. Exclusion of military reservists from application of the government pension offset and windfall elimination provisions. Sec. 309. Repeal of the facility-of-payment provision. Sec. 310. Maximum family benefits in guarantee cases. Sec. 311. Authorization for disclosure of social security information for purposes of

public or private epidemiological and similar research. Sec. 312. Misuse of symbols, emblems, or names in reference to Social Security Administration, Department of Health and Human Services, or Department of the Treasury. Sec. 313. Increased penalties for unauthorized disclosure of social security information.

Sec. 314. Increase in authorized period for extension of time to file annual earnings

report. Sec. 315. Extension of disability insurance program demonstration project authority. Sec. 316. Cross-matching of social security account number information and employer identification number information maintained by the Department

of Agriculture. Sec. 317. Certain transfers to railroad retirement account made permanent. Sec. 318. Authorization for use of social security account numbers by Department

of Labor in administration of Federal workers’ compensation laws. Sec. 319. Coverage under FICA of Federal employees transferred temporarily to

international organizations. Sec. 320. 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. 321. Technical and clerical amendments.

TITLE I—ESTABLISHMENT OF THE SOCIAL SECURITY ADMINISTRATION AS

AN INDEPENDENT AGENCY

SEC. 101. ESTABLISHMENT OF SOCIAL SECURITY ADMINISTRATION AS

AN INDEPENDENT AGENCY.

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

amended to read as follows:

‘‘SOCIAL SECURITY ADMINISTRATION

‘‘SEC. 701. (a) There is hereby established, as an independent

agency in the executive branch of the Government, a Social Security

Administration (in this title referred to as the ‘Administration’).

‘‘(b) 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. COMMISSIONER AND DEPUTY COMMISSIONER; OTHER OFFICERS.

Section 702 of the Social Security Act (42 U.S.C. 902) is

amended to read as follows:

‘‘COMMISSIONER; DEPUTY COMMISSIONER; OTHER OFFICERS

‘‘Commissioner of Social Security

‘‘SEC. 702. (a)(1) There shall be in the Administration a

Commissioner of Social Security (in this title referred to as the
H. R. 4277—3

‘Commissioner’) who shall be appointed by the President, by and

with the advice and consent of the Senate.

‘‘(2) The Commissioner shall be compensated at the rate provided for level I of the Executive Schedule.

‘‘(3) The Commissioner shall be appointed for a term of 6

years, except that the initial term of office for Commissioner shall

terminate January 19, 2001. In any case in which a successor

does not take office at the end of a Commissioner’s term of office,

such Commissioner may continue in office until the entry upon

office of such a successor. A Commissioner appointed to a term

of office after the commencement of such term may serve under

such appointment only for the remainder of such term. An individual serving in the office of Commissioner may be removed from

office only pursuant to a finding by the President of neglect of

duty or malfeasance in office.

‘‘(4) The Commissioner shall be responsible for the exercise

of all powers and the discharge of all duties of the Administration,

and shall have authority and control over all personnel and activities thereof.

‘‘(5) The Commissioner may prescribe such rules and regulations as the Commissioner determines necessary or appropriate

to carry out the functions of the Administration. The regulations

prescribed by the Commissioner shall be subject to the rulemaking

procedures established under section 553 of title 5, United States

Code.

‘‘(6) The Commissioner may establish, alter, consolidate, or

discontinue such organizational units or components within the

Administration as the Commissioner considers necessary or appropriate, except that this paragraph shall not apply with respect

to any unit, component, or provision provided for by this Act. ‘‘(7) The Commissioner may assign duties, and delegate, or

authorize successive redelegations of, authority to act and to render

decisions, to such officers and employees of the Administration

as the Commissioner 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 Commissioner.

‘‘(8) The Commissioner and the Secretary of Health and Human Services (in this title referred to as the ‘Secretary’) shall consult,

on an ongoing basis, to ensure— ‘‘(A) the coordination of the programs administered by the

Commissioner, as described in section 701, with the programs

administered by the Secretary under titles XVIII and XIX of

this Act; and

‘‘(B) that adequate information concerning benefits under

such titles XVIII and XIX is available to the public.

‘‘Deputy Commissioner of Social Security

‘‘(b)(1) There shall be in the Administration a Deputy Commissioner of Social Security (in this title referred to as the ‘Deputy

Commissioner’) who shall be appointed by the President, by and

with the advice and consent of the Senate.

‘‘(2) The Deputy Commissioner shall be appointed for a term

of 6 years, except that the initial term of office for the Deputy

Commissioner shall terminate January 19, 2001. In any case in
H. R. 4277—4

which a successor does not take office at the end of a Deputy

Commissioner’s term of office, such Deputy Commissioner may continue in office until the entry upon office of such a successor.

A Deputy Commissioner appointed to a term of office after the

commencement of such term may serve under such appointment

only for the remainder of such term.

‘‘(3) The Deputy Commissioner shall be compensated at the

rate provided for level II of the Executive Schedule.

‘‘(4) The Deputy Commissioner shall perform such duties and

exercise such powers as the Commissioner shall from time to time

assign or delegate. The Deputy Commissioner shall be Acting

Commissioner of the Administration during the absence or disability

of the Commissioner and, unless the President designates another

officer of the Government as Acting Commissioner, in the event

of a vacancy in the office of the Commissioner.

‘‘Chief Financial Officer

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

Officer appointed by the Commissioner in accordance with section

901(a)(2) of title 31, United States Code.

‘‘Inspector General

‘‘(d) There shall be in the Administration an Inspector General

appointed by the President, by and with the advice and consent

of the Senate, in accordance with section 3(a) of the Inspector

General Act of 1978.’’.

SEC. 103. SOCIAL SECURITY ADVISORY BOARD.

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

amended to read as follows:

‘‘SOCIAL SECURITY ADVISORY BOARD

‘‘Establishment of Board

‘‘SEC. 703. (a) There shall be established a Social Security

Advisory Board (in this section referred to as the ‘Board’).

‘‘Functions of the Board

‘‘(b) On and after the date the Commissioner takes office, the

Board shall advise the Commissioner on policies related to the

old-age, survivors, and disability insurance program under title

II and the supplemental security income program under title XVI.

Specific functions of the Board shall include—

‘‘(1) analyzing the Nation’s retirement and disability systems and making recommendations with respect to how the

old-age, survivors, and disability insurance program and the

supplemental security income program, supported by other public and private systems, can most effectively assure economic

security; ‘‘(2) studying and making recommendations relating to the

coordination of programs that provide health security with programs described in paragraph (1);

‘‘(3) making recommendations to the President and to the

Congress with respect to policies that will ensure the solvency
H. R. 4277—5

of the old-age, survivors, and disability insurance program,

both in the short-term and the long-term;

‘‘(4) making recommendations with respect to the quality

of service that the Administration provides to the public;

‘‘(5) making recommendations with respect to policies and

regulations regarding the old-age, survivors, and disability

insurance program and the supplemental security income program;

‘‘(6) increasing public understanding of the social security

system;

‘‘(7) making recommendations with respect to a long-range

research and program evaluation plan for the Administration;

‘‘(8) reviewing and assessing any major studies of social

security as may come to the attention of the Board; and

‘‘(9) making recommendations with respect to such other

matters as the Board determines to be appropriate.

‘‘Structure and Membership of the Board

‘‘(c)(1) The Board shall be composed of 7 members who shall

be appointed as follows:

‘‘(A) 3 members shall be appointed by the President, by

and with the advice and consent of the Senate. Not more

than 2 of such members shall be from the same political party.

‘‘(B) 2 members (each member from a different political

party) shall be appointed by the President pro tempore of

the Senate with the advice of the Chairman and the Ranking

Minority Member of the Senate Committee on Finance.

‘‘(C) 2 members (each member from a different political

party) shall be appointed by the Speaker of the House of Representatives, with the advice of the Chairman and the Ranking

Minority Member of the House Committee on Ways and Means.

‘‘(2) 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.

‘‘Terms of Appointment

‘‘(d) Each member of the Board shall serve for a term of 6

years, except that—

‘‘(1) a 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; and

‘‘(2) the terms of service of the members initially appointed

under this section shall begin on October 1, 1994, and expire

as follows:

‘‘(A) The terms of service of the members initially

appointed by the President shall expire as designated by

the President at the time of nomination, 1 each at the

end of—

‘‘(i) 2 years;

‘‘(ii) 4 years; and

‘‘(iii) 6 years.

‘‘(B) The terms of service of members initially

appointed by the President pro tempore of the Senate shall
H. R. 4277—6

expire as designated by the President pro tempore of the

Senate at the time of nomination, 1 each at the end of—

‘‘(i) 3 years; and

‘‘(ii) 6 years. ‘‘(C) The terms of service of members initially appointed by the Speaker of the House of Representatives

shall expire as designated by the Speaker of the House

of Representatives at the time of nomination, 1 each at

the end of—

‘‘(i) 4 years; and

‘‘(ii) 5 years.

‘‘Chairman

‘‘(e) A member of the Board shall be designated by the President to serve as Chairman for a term of 4 years, coincident with the

term of the President, or until the designation of a successor.

‘‘Expenses and Per Diem

‘‘(f) Members of the Board shall serve without compensation,

except that, while serving on business of the Board away from

their homes or regular places of business, members 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

in the Government employed intermittently.

‘‘Meetings

‘‘(g)(1) The Board shall meet at the call of the Chairman (in consultation with the other members of the Board) not less than

4 times each year to consider a specific agenda of issues, as determined by the Chairman in consultation with the other members

of the Board.

‘‘(2) Four members of the Board (not more than 3 of whom

may be of the same political party) shall constitute a quorum

for purposes of conducting business.

‘‘Federal Advisory Committee Act

‘‘(h) The Board shall be exempt from the provisions of the Federal Advisory Committee Act (5 U.S.C. App.).

‘‘Personnel

‘‘(i) The Board shall, without regard to the provisions of title 5, United States Code, relating to the competitive service, appoint

a Staff Director who shall be paid at a rate equivalent to a rate

established for the Senior Executive Service under section 5382

of title 5, United States Code. The Board shall appoint such additional personnel as the Board determines to be necessary to provide

adequate clerical support for the Board, and may compensate such

additional personnel without regard to the provisions of title 5,

United States Code, relating to the competitive service.

‘‘Authorization of Appropriations

‘‘(j) There are authorized to be appropriated, out of the Federal

Disability Insurance Trust Fund, the Federal Old-Age and Survivors
H. R. 4277—7

Insurance Trust Fund, and the general fund of the Treasury, such

sums as are necessary to carry out the purposes of this section.’’.

SEC. 104. PERSONNEL; BUDGETARY MATTERS; SEAL OF OFFICE.

(a) IN GENERAL.—Section 704 of the Social Security Act (42

U.S.C. 904) is amended to read as follows:

‘‘ADMINISTRATIVE DUTIES OF THE COMMISSIONER

‘‘Personnel

‘‘SEC. 704. (a)(1) The Commissioner shall appoint such additional officers and employees as the Commissioner considers necessary to carry out the functions of the Administration under this

Act, and attorneys and experts may be appointed without regard

to the civil service laws. Except as otherwise provided in the preceding sentence or 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 Commissioner may procure the services of experts

and consultants in accordance with the provisions of section 3109

of title 5, United States Code.

‘‘(3) Notwithstanding any requirements of section 3133 of title

5, United States Code, the Director of the Office of Personnel

Management shall authorize for the Administration a total number

of Senior Executive Service positions which is substantially 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 Independence and Program Improvements Act of 1994

to the extent that the greater number of such authorized positions

is specified in the comprehensive work force plan as established

and revised by the Commissioner under subsection (b)(2). The total

number of such positions authorized for the Administration shall

not at any time be less than the number of such authorized positions

as of immediately before such date.

‘‘Budgetary Matters

‘‘(b)(1) The Commissioner shall 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. ‘‘(2)(A) Appropriations requests for staffing and personnel of

the Administration shall be based upon a comprehensive work

force plan, which shall be established and revised from time to

time by the Commissioner.

‘‘(B) Appropriations for administrative expenses of the Administration are authorized to be provided on a biennial basis.

‘‘Employment Restriction

‘‘(c) The total number of positions in the Administration (other

than positions established under section 702) which—

‘‘(1) are held by noncareer appointees (within the meaning

of section 3132(a)(7) of title 5, United States Code) in the

Senior Executive Service, or
H. R. 4277—8

‘‘(2) have been determined by the President or the Office

of Personnel Management to be of a confidential, policy-determining, policy-making, or policy-advocating character and have

been excepted from the competitive service thereby,

may not exceed at any time the equivalent of 20 full-time positions.

‘‘Seal of Office

‘‘(d) The Commissioner shall cause a seal of office to be made

for the Administration of such design as the Commissioner shall

approve. Judicial notice shall be taken of such seal.

‘‘Data Exchanges

‘‘(e)(1) Notwithstanding any other provision of law (including

subsections (b), (o), (p), (q), (r), and (u) of section 552a of title

5, United States Code)—

‘‘(A) the Secretary shall disclose to the Commissioner any

record or information requested in writing by the Commissioner

for the purpose of administering any program administered

by the Commissioner, if records or information of such type

were disclosed to the Commissioner of Social Security in the

Department of Health and Human Services under applicable

rules, regulations, and procedures in effect before the date

of the enactment of the Social Security Independence and Program Improvements Act of 1994; and

‘‘(B) the Commissioner shall disclose to the Secretary or

to any State any record or information requested in writing

by the Secretary to be so disclosed for the purpose of administering any program administered by the Secretary, if records

or information of such type were so disclosed under applicable

rules, regulations, and procedures in effect before the date

of the enactment of the Social Security Independence and Program Improvements Act of 1994.

‘‘(2) The Commissioner and the Secretary shall enter into an

agreement under which the Commissioner provides the Secretary

data concerning the quality of the services and information provided

to beneficiaries of the programs under titles XVIII and XIX and

the administrative services provided by the Social Security Administration in support of such programs. Such agreement shall stipulate

the type of data to be provided and the terms and conditions

under which the data are to be provided.

‘‘(3) The Commissioner and the Secretary shall periodically

review the need for exchanges of information not referred to in

paragraph (1) or (2) and shall enter into such agreements as may

be necessary and appropriate to provide information to each other

or to States in order to meet the programmatic needs of the requesting agencies.

‘‘(4)(A) Any disclosure from a system of records (as defined

in section 552a(a)(5) of title 5, United States Code) pursuant to

this subsection shall be made as a routine use under subsection

(b)(3) of section 552a of such title (unless otherwise authorized

under such section 552a).

‘‘(B) Any computerized comparison of records, including matching programs, between the Commissioner and the Secretary shall

be conducted in accordance with subsections (o), (p), (q), (r), and

(u) of section 552a of title 5, United States Code.
H. R. 4277—9

‘‘(5) The Commissioner and the Secretary shall each ensure

that timely action is taken to establish any necessary routine uses

for disclosures required under paragraph (1) or agreed to pursuant

to paragraph (3).’’.

(b) REPORT ON SES POSITIONS UNDER COMPREHENSIVE WORK

FORCE PLAN.—Within 60 days after the establishment by the

Commissioner of Social Security of the comprehensive work force

plan required under section 704(b)(2) of the Social Security Act

(as amended by this Act), the Director of the Office of Personnel

Management shall transmit to the Committee on Ways and Means

of the House of Representatives and the Committee on Finance

of the Senate a report specifying the total number of Senior Executive Services positions authorized for the Social Security Administration in connection with such work force plan.

(c) EFFECTIVE DATE AND TRANSITION RULE FOR CERTAIN DATA

EXCHANGE PROVISIONS.—

(1) EFFECTIVE DATE.—Section 704(e)(4) of the Social Security Act (as amended by subsection (a)) shall take effect March

31, 1996.

(2) TRANSITION RULE.—Notwithstanding any other provision of law (including subsections (b), (o), (p), (q), (r), and

(u) of section 552a of title 5, United States Code), arrangements

for disclosure of records or other information, and arrangements

for computer matching of records, which were in effect immediately before the date of the enactment of this Act between

the Social Security Administration in the Department of Health

and Human Services and other components of such Department

may continue between the Social Security Administration established under section 701 of the Social Security Act (as amended

by this Act) and such Department during the period beginning

on the date of the enactment of this Act and ending March

31, 1996.

SEC. 105. TRANSFERS TO THE NEW SOCIAL SECURITY ADMINISTRATION.

(a) FUNCTIONS.—

(1) IN GENERAL.—There are transferred to the Social Security Administration all functions of the Secretary of Health

and Human Services with respect to or in support of the programs and activities the administration of which is vested

in the Social Security Administration by reason of this title

and the amendments made thereby. The Commissioner of Social

Security shall allocate such functions in accordance with sections 701, 702, 703, and 704 of the Social Security Act (as

amended by this title).

(2) FUNCTIONS OF OTHER AGENCIES.—

(A) IN GENERAL.—Subject to subparagraph (B), the

Social Security Administration shall also perform—

(i) the functions of the Department of Health and

Human Services, including functions relating to titles

XVIII and XIX of the Social Security Act (including

adjudications, subject to final decisions by the Secretary of Health and Human Services), that the Social

Security Administration in such Department performed

as of immediately before the date of the enactment

of this Act, and
H. R. 4277—10

(ii) the functions of any other agency for which

administrative responsibility was vested in the Social

Security Administration in the Department of Health

and Human Services as of immediately before the date

of the enactment of this Act.

(B) RULES GOVERNING CONTINUATION OF FUNCTIONS

IN THE ADMINISTRATION.—The Social Security Administration shall perform, on behalf of the Secretary of Health

and Human Services (or the head of any other agency,

as applicable), the functions described in subparagraph

(A) in accordance with the same financial and other terms

in effect on the day before the date of the enactment

of this Act, except to the extent that the Commissioner

and the Secretary (or other agency head, as applicable)

agree to alter such terms pertaining to any such function

or to terminate the performance by the Social Security

Administration of any such function.

(b) PERSONNEL, ASSETS, ETC.—

(1) IN GENERAL.—There are transferred from the Department of Health and Human Services to the Social Security

Administration, for appropriate allocation by the Commissioner

of Social Security in the Social Security Administration—

(A) the personnel employed in connection with the

functions transferred by this title and the amendments

made thereby; and

(B) 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.—Unexpended funds transferred

pursuant to this subsection shall be used only for the purposes

for which the funds were originally appropriated. (3) EMPLOYMENT PROTECTIONS.— (A) IN GENERAL.—During the 1-year period beginning

March 31, 1995—

(i) the transfer pursuant to this section of any full-time personnel (except special Government employees) and part-time personnel holding permanent positions shall not cause any such personnel to be

separated or reduced in grade or compensation solely

as a result of such transfer, and

(ii) except as provided in subparagraph (B), any

such personnel who were not employed in the Social

Security Administration in the Department of Health

and Human Services immediately before the date of

the enactment of this Act shall not be subject to

directed reassignment to a duty station outside their

commuting area.

(B) SPECIAL RULES.—

(i) In the case of personnel whose duty station

is in the Washington, District of Columbia, commuting

area immediately before March 31, 1995, subparagraph

(A)(ii) shall not apply with respect to directed reassignment to a duty station in the Baltimore, Maryland,

commuting area after September 30, 1995.
H. R. 4277—11

(ii) In the case of personnel whose duty station

is in the Baltimore, Maryland, commuting area immediately before March 31, 1995, subparagraph (A)(ii)

shall not apply with respect to directed reassignment

to a duty station in the Washington, District of Columbia, commuting area after September 30, 1995.

(4) OFFICE SPACE.—Notwithstanding section 7 of the Public

Buildings Act of 1959 (40 U.S.C. 606), and subject to available

appropriations, the Administrator of General Services may,

after consultation with the Commissioner of Social Security

and under such terms and conditions as the Administrator

finds to be in the interests of the United States—

(A) acquire occupiable space in the metropolitan area

of Washington, District of Columbia, for housing the Social

Security Administration, and

(B) renovate such space as necessary.

(c) INTER-AGENCY TRANSFER ARRANGEMENT.—The Secretary of

Health and Human Services and the Commissioner of Social Security shall enter into a written inter-agency transfer arrangement

(in this subsection referred to as the ‘‘arrangement’’), which shall

be effective March 31, 1995. Transfers made pursuant to this section

shall be in accordance with the arrangement, which shall specify

the personnel and resources to be transferred as provided under

this section. The terms of such arrangement shall be transmitted

not later than January 1, 1995, to the Committee on Ways and

Means of the House of Representatives, to the Committee on

Finance of the Senate, and to the Comptroller General of the

United States. Not later than February 15, 1995, the Comptroller

General shall submit a report to each such Committee setting

forth an evaluation of such arrangement.

SEC. 106. TRANSITION RULES.

(a) TRANSITION RULES RELATING TO OFFICERS OF THE SOCIAL

SECURITY ADMINISTRATION.—

(1) APPOINTMENT OF INITIAL COMMISSIONER OF SOCIAL SECURITY.—The President shall nominate for appointment the initial

Commissioner of Social Security to serve as head of the Social

Security Administration established under section 701 of the

Social Security Act (as amended by this Act) not later than

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

(2) ASSUMPTION OF OFFICE OF INITIAL COMMISSIONER

BEFORE EFFECTIVE DATE OF NEW AGENCY.—If the appointment

of the initial Commissioner of Social Security pursuant to section 702 of the Social Security Act (as amended by this Act)

is confirmed by the Senate pursuant to such section 702 before

March 31, 1995, the individual shall take office as Commissioner immediately upon confirmation, and, until March 31,

1995, such Commissioner shall perform the functions of the

Commissioner of Social Security in the Department of Health

and Human Services.

(3) TREATMENT OF INSPECTOR GENERAL AND OTHER APPOINTMENTS.—At any time on or after the date of the enactment

of this Act, any of the officers provided for in section 702

of the Social Security Act (as amended by this title) and any

of the members of the Social Security Advisory Board provided

for in section 703 of such Act (as so amended) may be nominated
H. R. 4277—12

and take office, under the terms and conditions set out in

such sections.

(4) COMPENSATION FOR INITIAL OFFICERS AND BOARD MEMBERS BEFORE EFFECTIVE DATE OF NEW AGENCY.—Funds available to any official or component of the Department of Health

and Human Services, functions of which are transferred to

the Commissioner of Social Security or the Social Security

Administration by this title, may, with the approval of the

Director of the Office of Management and Budget, be used

to pay the compensation and expenses of any officer or employee

of the new Social Security Administration and of any member

or staff of the Social Security Advisory Board who takes office

pursuant to this subsection before March 31, 1995, until such

time as funds for that purpose are otherwise available.

(5) INTERIM ROLE OF CURRENT COMMISSIONER AFTER EFFECTIVE DATE OF NEW AGENCY.—In the event that, as of March

31, 1995, an individual appointed to serve as the initial

Commissioner of Social Security has not taken office, until

such initial Commissioner has taken office, the officer serving

on March 31, 1995, as Commissioner of Social Security (or

Acting Commissioner of Social Security, if applicable) in the

Department of Health and Human Services shall, while continuing to serve as such Commissioner of Social Security (or Acting

Commissioner of Social Security), serve as Commissioner of

Social Security (or Acting Commissioner of Social Security,

respectively) in the Social Security Administration established

under such section 701 and shall assume the powers and duties

under such Act (as amended by this Act) of the Commissioner

of Social Security in the Social Security Administration as

so established under such section 701. In the event that, as

of March 31, 1995, the President has not nominated an individual for appointment to the office of Commissioner of Social

Security in the Social Security Administration established

under such section 701, then the individual serving as Commissioner of Social Security (or Acting Commissioner of Social

Security, if applicable) in the Department of Health and Human

Services shall become the Acting Commissioner of Social Security in the Social Security Administration as so established

under such section 701.

(6) INTERIM INSPECTOR GENERAL.—The Commissioner of

Social Security may appoint an individual to assume the powers

and duties under the Inspector General Act of 1978 of Inspector

General of the Social Security Administration as established

under section 701 of the Social Security Act for a period not

to exceed 60 days. The Inspector General of the Department

of Health and Human Services may, when so requested by

the Commissioner, while continuing to serve as Inspector General in such Department, serve as Inspector General of the

Social Security Administration established under such section

701 and shall assume the powers and duties under the Inspector General Act of 1978 of Inspector General of the Social

Security Administration as established under such section 701.

The Social Security Administration shall reimburse the Office

of Inspector General of the Department of Health and Human

Services for costs of any functions performed pursuant to this

subsection, from funds available to the Administration at the

time the functions are performed. The authority under this
H. R. 4277—13

paragraph to exercise the powers and duties of the Inspector

General shall terminate upon the entry upon office of an Inspector General for the Social Security Administration under the

Inspector General Act of 1978.

(7) ABOLISHMENT OF OFFICE OF COMMISSIONER OF SOCIAL

SECURITY IN THE DEPARTMENT OF HEALTH AND HUMAN SERVICES.—Effective when the initial Commissioner of Social Security of the Social Security Administration established under

section 701 of the Social Security Act (as amended by this

title) takes office pursuant to section 702 of such Act (as so

amended)—

(A) the position of Commissioner of Social Security

in the Department of Health and Human Services is abolished; and

(B) section 5315 of title 5, United States Code, is

amended by striking the following:

‘‘Commissioner of Social Security, Department of Health

and Human Services.’’.

(b) CONTINUATION OF ORDERS, DETERMINATIONS, RULES, REGULATIONS, ETC.—All orders, determinations, rules, regulations, permits, contracts, collective bargaining agreements (and ongoing

negotiations relating to such 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 the Secretary’s delegate), and (B) which relate

to functions which, by reason of this title, the amendments

made thereby, and regulations prescribed thereunder, are

vested in the Commissioner of Social Security; and (2) which are in effect immediately before March 31, 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 by such

Commissioner, except that any collective bargaining agreement

shall remain in effect until the date of termination specified in

such agreement. (c) CONTINUATION OF PROCEEDINGS.—The provisions of this

title (including the amendments made thereby) shall not affect

any proceeding pending before the Secretary of Health and Human

Services immediately before March 31, 1995, with respect to functions vested (by reason of this title, the amendments made thereby,

and regulations prescribed thereunder) in the Commissioner of

Social Security, except that such proceedings, to the extent that

such proceedings relate to such functions, shall continue before

such Commissioner. 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 title had not been enacted,

and orders issued in any such proceeding shall continue in effect

until modified, terminated, superseded, or repealed by such

Commissioner, 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 title shall not affect suits commenced before March 31, 1995; and
H. R. 4277—14

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

taken, and judgments rendered, in the same manner and effect

as if this title had not been enacted.

No cause of action, and no suit, action, or other proceeding commenced by or against any officer in such officer’s official capacity

as an officer of the Department of Health and Human Services,

shall abate by reason of the enactment of this title. In any suit,

action, or other proceeding pending immediately before March 31,

1995, the court or hearing officer may at any time, on the motion

of the court or hearing officer 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 title shall not have

the effect of releasing or extinguishing any civil or criminal prosecution, penalty, forfeiture, or liability incurred as a result of any

function which (by reason of this title, the amendments made

thereby, and regulations prescribed thereunder) is vested in the

Commissioner of Social Security.

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

of Social Security in the exercise of functions vested in such

Commissioner under this title and the amendments made thereby

(other than functions performed pursuant to 105(a)(2)) 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 March 31, 1995.

Any statutory requirements relating to notice, hearings, action upon

the record, or administrative review that apply to any function

so vested in such Commissioner shall continue to apply to the

exercise of such function by such Commissioner. (g) EXERCISE OF FUNCTIONS.—In the exercise of the functions

vested in the Commissioner of Social Security under this title,

the amendments made thereby, and regulations prescribed thereunder, such Commissioner 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 Commissioner, and actions of such

Commissioner shall have the same force and effect as when exercised by such Secretary.

SEC. 107. CONFORMING AMENDMENTS TO TITLES II AND XVI OF THE

SOCIAL SECURITY ACT.

(a) IN GENERAL.—Title II of the Social Security Act (42 U.S.C. 401 et seq.) (other than section 201, section 231(c), section 226,

and section 226A) and title XVI of such Act (42 U.S.C. 1382 et

seq.) (other than section 1614(f)(2)(B)) are each amended—

(1) by striking, wherever it appears, ‘‘Secretary of Health

and Human Services’’ and inserting ‘‘Commissioner of Social

Security’’;

(2) by striking, wherever it appears, ‘‘Department of Health

and Human Services’’ and inserting ‘‘Social Security Administration’’;

(3) by striking, wherever it appears, ‘‘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’’; and
H. R. 4277—15

(4) by striking, wherever it appears, 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’’, ‘‘he’’, ‘‘her’’, and ‘‘she’’, and

inserting (in the case of the word ‘‘Secretary’’) ‘‘Commissioner

of Social Security’’, (in the case of the word ‘‘Secretary’s’’)

‘‘Commissioner’s’’, (in the case of the word ‘‘his’’) ‘‘the Commissioner’s’’, (in the case of the word ‘‘him’’) ‘‘the Commissioner’’,

(in the case of the word ‘‘her’’) ‘‘the Commissioner’’ or ‘‘the

Commissioner’s’’, as may be appropriate, and (in the case of

the words ‘‘she’’ or ‘‘he’’) ‘‘the Commissioner’’.

(b) AMENDMENTS TO SECTION 201.—

(1) Subsections (a)(3), (a)(4), (b)(1), and (b)(2) of section

201 of such Act (42 U.S.C. 401) are amended by striking ‘‘Secretary of Health and Human Services’’ and inserting ‘‘Commissioner of Social Security’’.

(2) Subsections (a)(3) and (b)(1) of section 201 of such

Act (42 U.S.C. 401) are amended by striking ‘‘such Secretary’’

and inserting ‘‘such Commissioner’’.

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

amended—

(A) in the first sentence, by inserting ‘‘the Commissioner of Social Security,’’ before ‘‘the Secretary of the

Treasury’’; and

(B) in the fifth sentence, by striking ‘‘Commissioner

of Social Security’’ and inserting ‘‘Deputy Commissioner

of Social Security’’.

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

is amended—

(A) in clause (i), by striking ‘‘by him and the Secretary

of Health and Human Services’’ and inserting ‘‘by the Managing Trustee, the Commissioner of Social Security, and

the Secretary of Health and Human Services’’, and by

striking ‘‘by the Department of Health and Human Services

and the Treasury Department for the administration of

titles II, XVI, and XVIII of this Act’’ and inserting ‘‘by

the Department of Health and Human Services for the

administration of title XVIII of this Act, and by the Department of the Treasury for the administration of titles II

and XVIII of this Act’’;

(B) in clause (ii), by striking ‘‘method prescribed by the Board of Trustees under paragraph (4)’’ and inserting

‘‘applicable method prescribed under paragraph (4)’’, by

striking ‘‘the Secretary of Health and Human Services’’

and inserting ‘‘the Commissioner of Social Security’’, and

by striking ‘‘the Department of Health and Human Services’’ and inserting ‘‘the Social Security Administration’’;

and

(C) in the matter following clause (ii), by striking ‘‘titles

II, XVI, and XVIII’’ in the first sentence and inserting

‘‘titles II and XVIII’’, and by striking the last sentence

and inserting the following: ‘‘There are hereby authorized

to be made available for expenditure, out of any or all

of the Trust Funds, such amounts as the Congress may

deem appropriate to pay the costs of the part of the

administration of this title, title XVI, and title XVIII for

which the Commissioner of Social Security is responsible,
H. R. 4277—16

the costs of title XVIII for which the Secretary of Health

and Human Services is responsible, and the costs of carrying out the functions of the Social Security Administration,

specified in section 232, which relate to the administration

of provisions of the Internal Revenue Code of 1986 other

than those referred to in clause (i) of the first sentence

of this subparagraph.’’.

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

is further amended by striking subparagraph (B) and inserting

the following new subparagraphs:

‘‘(B) After the close of each fiscal year—

‘‘(i) the Commissioner of Social Security shall determine—

‘‘(I) the portion of the costs, incurred during such fiscal

year, of administration of this title, title XVI, and title

XVIII for which the Commissioner is responsible and of

carrying out the functions of the Social Security Administration, specified in section 232, which relate to the

administration of provisions of the Internal Revenue Code

of 1986 (other than those referred to in clause (i) of the

first sentence of subparagraph (A)), which should have

been borne by the general fund of the Treasury,

‘‘(II) the portion of such costs which should have been

borne by the Federal Old-Age and Survivors Insurance

Trust Fund,

‘‘(III) the portion of such costs which should have been

borne by the Federal Disability Insurance Trust Fund,

‘‘(IV) the portion of such costs which should have been

borne by the Federal Hospital Insurance Trust Fund, and ‘‘(V) the portion of such costs which should have been

borne by the Federal Supplementary Medical Insurance

Trust Fund, and

‘‘(ii) the Secretary of Health and Human Services shall

determine—

‘‘(I) the portion of the costs, incurred during such fiscal

year, of the administration of title XVIII for which the

Secretary is responsible, which should have been borne

by the general fund of the Treasury, ‘‘(II) the portion of such costs which should have been

borne by the Federal Hospital Insurance Trust Fund, and ‘‘(III) the portion of such costs which should have been

borne by the Federal Supplementary Medical Insurance

Trust Fund.

‘‘(C) After the determinations under subparagraph (B) have

been made for any fiscal year, the Commisioner of Social Security

and the Secretary shall each certify to the Managing Trustee the

amounts, if any, which should be transferred from one to any

of the other such Trust Funds and the amounts, if any, which

should be transferred between the Trust Funds (or one of the

Trust Funds) and the general fund of the Treasury, in order to

ensure that each of the Trust Funds and the general fund of

the Treasury have borne their proper share of the costs, incurred

during such fiscal year, for—

‘‘(i) the parts of the administration of this title, title XVI,

and title XVIII for which the Commissioner of Social Security

is responsible,

‘‘(ii) the parts of the administration of title XVIII for which

the Secretary is responsible, and
H. R. 4277—17

‘‘(iii) carrying out the functions of the Social Security

Administration, specified in section 232, which relate to the

administration of provisions of the Internal Revenue Code of

1986 (other than those referred to in clause (i) of the first

sentence of subparagraph (A)).

The Managing Trustee shall transfer any such amounts in accordance with any certification so made.

‘‘(D) The determinations required under subclauses (IV) and

(V) of subparagraph (B)(i) shall be made in accordance with the

cost allocation methodology in existence on the date of the enactment of the Social Security Independence and Program Improvements Act of 1994, until such time as the methodology for making

the determinations required under such subclauses is revised by

agreement of the Commissioner and the Secretary, except that

the determination of the amounts to be borne by the general fund

of the Treasury with respect to expenditures incurred in carrying

out the functions of the Social Security Administration specified

in section 232 shall be made pursuant to the applicable method

prescribed under paragraph (4).’’.

(5) Section 201(g)(2) of such Act (42 U.S.C. 401(g)(2)) is

amended, in the second sentence, by striking ‘‘established and

maintained by the Secretary of Health and Human Services’’

and inserting ‘‘maintained by the Commissioner of Social Security’’, and by striking ‘‘Secretary shall furnish’’ and inserting

‘‘Commissioner of Social Security shall furnish’’.

(6) Section 201(g)(4) of such Act (42 U.S.C. 401(g)(4)) is

amended to read as follows:

‘‘(4) The Commissioner of Social Security shall utilize the

method prescribed pursuant to this paragraph, as in effect immediately before the date of the enactment of the Social Security

Independence and Program Improvements Act of 1994, for determining the costs which should be borne by the general fund of the

Treasury of carrying out the functions of the Commissioner, specified in section 232, which relate to the administration of provisions

of the Internal Revenue Code of 1986 (other than those referred

to in clause (i) of the first sentence of paragraph (1)(A)). If at

any time or times thereafter the Boards of Trustees of such Trust

Funds consider such action advisable, they may modify the method

of determining such costs.’’. (7) Section 201(i)(1) of such Act (42 U.S.C. 401(i)(1)) is

amended to read as follows:

‘‘(i)(1) The Managing Trustee may accept on behalf of the United

States money gifts and bequests made unconditionally to the Federal Old-Age and Survivors Insurance Trust Fund, the Federal

Disability Insurance Trust Fund, the Federal Hospital Insurance

Trust Fund, or the Federal Supplementary Medical Insurance Trust

Fund or to the Social Security Administration, the Department

of Health and Human Services, or any part or officer thereof,

for the benefit of any of such Funds or any activity financed through

such Funds.’’.

(8) Subsections (j) and (k) of section 201 of such Act (42

U.S.C. 401) are each amended by striking ‘‘Secretary’’ each

place it appears and inserting ‘‘Commissioner of Social Security’’.

(9) Section 201(l)(3)(B)(iii)(II) of such Act (42 U.S.C.

401(l)(3)(B)(iii)(II)) is amended by striking ‘‘Secretary’’ and

inserting ‘‘Commissioner of Social Security’’.
H. R. 4277—18

(10) Section 201(m)(3) of such Act (42 U.S.C. 401(m)(3))

is amended by striking ‘‘Secretary of Health and Human Services’’ and inserting ‘‘Commissioner of Social Security’’.

(c) AMENDMENT TO SECTION 231.—Section 231(c) of such Act

(42 U.S.C. 431(c)) is amended by striking ‘‘Secretary determines’’

and inserting ‘‘Commissioner of Social Security and the Secretary

jointly determine’’.

SEC. 108. ADDITIONAL CONFORMING AMENDMENTS.

(a) AMENDMENTS TO TITLE VII.—

(1) Title VII of the Social Security Act (42 U.S.C. 901 et seq.) is amended by adding at the end the following new

section:

‘‘DUTIES AND AUTHORITY OF SECRETARY

‘‘SEC. 712. The Secretary shall perform the duties imposed upon the Secretary by this Act. 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 functions of the Secretary under this Act. The Secretary

may appoint attorneys and experts without regard to the civil

service laws.’’.

(2) Section 706 of such Act (42 U.S.C. 907) is repealed.

This paragraph shall not apply with respect to the Advisory

Council for Social Security appointed in 1994. (3) Paragraph (2) of section 709(b) of such Act (42 U.S.C. 910(b)) is amended by striking ‘‘(as estimated by the Secretary)’’

and inserting ‘‘(for amounts which will be paid from the Federal

Old-Age and Survivors Insurance Trust Fund and the Federal

Disability Insurance Trust Fund, as estimated by the Commissioner, and for amounts which will be paid from the Federal

Hospital Insurance Trust and the Federal Supplementary Medical Insurance Trust Fund, as estimated by the Secretary)’’.

(b) AMENDMENTS TO TITLE XI.—

(1) Section 1101(a) of such Act (42 U.S.C. 1301(a)) is

amended by adding at the end the following new paragraph:

‘‘(10) The term ‘Administration’ means the Social Security

Administration, except where the context requires otherwise.’’.

(2) Section 1106(a) of such Act (42 U.S.C. 1306(a)) is

amended—

(A) by inserting ‘‘(1)’’ after ‘‘(a)’’;

(B) by striking ‘‘Department of Health and Human

Services’’ each place it appears and inserting ‘‘applicable

agency’’;

(C) by striking ‘‘Secretary’’ each place it appears and

inserting ‘‘head of the applicable agency’’; and

(D) by adding at the end the following new paragraph:

‘‘(2) For purposes of this subsection and subsection (b), the

term ‘applicable agency’ means—

‘‘(A) the Social Security Administration, with respect to

matter transmitted to or obtained by such Administration or

matter disclosed by such Administration, or

‘‘(B) the Department of Health and Human Services, with

respect to matter transmitted to or obtained by such Department or matter disclosed by such Department.’’.

(3) Section 1106(b) of such Act (42 U.S.C. 1306(b)) is

amended—
H. R. 4277—19

(A) by striking ‘‘Secretary’’ each place it appears and

inserting ‘‘head of the applicable agency’’; and

(B) by striking ‘‘Department of Health and Human

Services’’ and inserting ‘‘applicable agency’’.

(4) Section 1106(c) of such Act (42 U.S.C. 1306(c)) is

amended—

(A) by striking ‘‘the Secretary’’ the first place it appears

and inserting ‘‘the Commissioner of Social Security or the

Secretary’’; and

(B) by striking ‘‘the Secretary’’ each subsequent place

it appears and inserting ‘‘such Commissioner or Secretary’’.

(5) Section 1106(d) of such Act (added by section 311 of

this Act) is amended—

(A) by striking ‘‘Secretary’’ the first place it appears

and inserting ‘‘Commissioner of Social Security’’;

(B) by striking ‘‘Secretary’’ the second place it appears

and inserting ‘‘Commissioner’’;

(C) by striking ‘‘Secretary’’ the third place it appears

and inserting ‘‘Commissioner in consultation with the Secretary of Health and Human Services’’; and

(D) by striking ‘‘Secretary’’ each subsequent place it

appears and inserting ‘‘Commissioner’’.

(6) Section 1107(b) of such Act (42 U.S.C. 1307(b)) is

amended by striking ‘‘the Secretary of Health and Human

Services’’ and inserting ‘‘the Commissioner of Social Security

or the Secretary’’.

(7) Section 1110 of such Act (42 U.S.C. 1310) is amended—

(A) by striking ‘‘he’’, ‘‘his’’, and ‘‘him’’ each place they appear (except in subsection (b)(2)(A)) and inserting ‘‘the

Commissioner’’, ‘‘the Commissioner’s’’, and ‘‘the Commissioner’’, respectively; (B) in subsection (a)(2), by inserting ‘‘(or the Commissioner, with respect to any jointly financed cooperative

agreement or grant concerning titles II or XVI)’’ after ‘‘Secretary’’; (C) in subsection (b)(1)—

(i) by striking ‘‘Secretary’’ each place it appears

in the first two sentences and inserting ‘‘Commissioner’’;

(ii) by striking in the third sentence ‘‘determined

by the Secretary,’’ and inserting ‘‘determined by the

Commissioner with respect to the old-age, survivors,

and disability insurance programs under title II and

the supplemental security income program under title

XVI, and by the Secretary with respect to other titles

of this Act,’’; and

(iii) by striking the fourth sentence and inserting

the following new sentences: ‘‘If, in order to carry out

a project under this subsection, the Commissioner

requests a State to make supplementary payments

(or the Commissioner makes them pursuant to an

agreement under section 1616) to individuals who are

not eligible therefor, or in amounts or under circumstances in which the State does not make such

payments, the Commissioner shall reimburse such

State for the non-Federal share of such payments from

amounts appropriated to carry out title XVI. If, in
H. R. 4277—20

order to carry out a project under this subsection,

the Secretary requests a State to provide medical

assistance under its plan approved under title XIX

to individuals who are not eligible therefor, or in

amounts or under circumstances in which the State

does not provide such medical assistance, the Secretary

shall reimburse such State for the non-Federal share

of such assistance from amounts appropriated to carry

out title XVI, which shall be provided by the Commissioner to the Secretary for this purpose.’’;

(D) in subsection (b)(2), by striking ‘‘Secretary’’ each

place it appears and inserting ‘‘Commissioner’’; and

(E) in subsection (b), by striking paragraph (3).

(8) Subsections (b) and (c) of section 1127 of such Act

(42 U.S.C. 1320a–6) are each amended by striking ‘‘Secretary’’

and inserting ‘‘Commissioner of Social Security’’.

(9) Section 1128(f) of such Act (42 U.S.C. 1320a–7(f)) is

amended—

(A) in paragraph (1), by inserting after ‘‘section 205(g)’’

the following: ‘‘, except that, in so applying such sections

and section 205(l), any reference therein to the Commissioner of Social Security or the Social Security Administration shall be considered a reference to the Secretary or

the Department of Health and Human Services, respectively’’, and

(B) in paragraph (3), by inserting after ‘‘title II’’ the

following: ‘‘, except that, in so applying such section and

section 205(l), any reference therein to the Commissioner

of Social Security shall be considered a reference to the

Secretary’’.

(10)(A) Section 1129 of such Act (added by section 206(b)

of this Act) is amended—

(i) by striking ‘‘Secretary’’ each place it appears and

inserting ‘‘Commissioner of Social Security’’;

(ii) in subsection (a)(1)—

(I) by striking ‘‘exclude, as provided in section

1128,’’ and inserting ‘‘recommend that the Secretary

exclude, as provided in section 1128,’’; and

(II) by striking ‘‘and to direct’’ and all that follows

through ‘‘determines’’;

(iii) in subsection (g)—

(I) by striking ‘‘Secretary’s’’ and inserting

‘‘Commissioner’s’’; and

(II) by striking ‘‘the provisions’’ and all that follows

and inserting the following: ‘‘the Commissioner shall

notify the Secretary of the final determination and

the reasons therefor, and the Secretary shall then

notify the entities described in section 1128A(h) of

such final determination.’’;

(iv) in subsection (k), by inserting ‘‘based on a recommendation under subsection (a)’’ after ‘‘section 1128’’;

and

(v) in subsection (l) (added by section 206(e)(1)), by

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

inserting ‘‘Social Security Administration’’.

(B) Section 206(g) of this Act is amended—
H. R. 4277—21

(i) by striking ‘‘Secretary of Health and Human Services’’ and inserting ‘‘Commissioner of Social Security’’; and

(ii) by striking ‘‘Secretary has exercised’’ and inserting

‘‘Commissioner has exercised’’.

(11) Section 1131 of such Act (42 U.S.C. 1320b–1) is

amended—

(A) by striking ‘‘Secretary’’ each place it appears and

inserting ‘‘Commissioner of Social Security’’;

(B) in subsection (a)(1)(A), by adding ‘‘or’’ at the end;

(C) in subsection (a)(1)(B), by striking ‘‘or’’ at the end;

(D) by striking subsection (a)(1)(C);

(E) by redesignating subsection (a)(2) as subsection

(a)(3);

(F) by inserting after subsection (a)(1) the following

new paragraph:

‘‘(2) the Secretary makes a finding of fact and a decision as

to the entitlement under section 226 of any individual to hospital

insurance benefits under part A of title XVIII, or’’; and

(G) in the matter in subsection (a) following paragraph

(3) (as so redesignated), by striking ‘‘he’’ and inserting

‘‘the Commissioner of Social Security’’, by striking ‘‘paragraph (1)’’ and inserting ‘‘paragraph (1) or (2)’’, by striking

‘‘paragraph (2)’’ and inserting ‘‘paragraph (3)’’, and by striking ‘‘paragraph (1) or (2)(A)’’ and inserting ‘‘paragraph (1),

(2), or (3)(A)’’.

(12) Section 1140 of such Act (42 U.S.C. 1320b–10) (as

amended by section 312 of this Act) is amended—

(A) in subsection (a)(2)—

(i) by inserting ‘‘(A)’’ after ‘‘(2)’’;

(ii) by striking ‘‘or of the Department of Health

and Human Services’’;

(iii) by striking ‘‘which the Secretary shall prescribe’’ and inserting ‘‘which the Commissioner of

Social Security shall prescribe’’; and (iv) by adding at the end the following new

subparagraph: ‘‘(B) No person may, for a fee, reproduce, reprint, or distribute

any item consisting of a form, application, or other publication

of the Department of Health and Human Services unless such

person has obtained specific, written authorization for such activity

in accordance with regulations which the Secretary shall prescribe.’’; (B) in subsection (b), by striking ‘‘the Secretary’’ and inserting ‘‘the Commissioner or the Secretary (as

applicable)’’;

(C) in subsection (c)(2), by striking ‘‘the Secretary’’

each place it appears and inserting ‘‘the Commissioner

or the Secretary (as applicable)’’; and

(D) in subsection (d), by striking ‘‘the Office of Inspector

General of the Department of Health and Human Services’’

and inserting ‘‘the Office of the Inspector General of the

Social Security Administration or the Office of the Inspector

General of the Department of Health and Human Services

(as appropriate)’’.

(13) Section 1141 of such Act (42 U.S.C. 1320b–11) is

amended—

(A) by striking ‘‘Secretary’’ each place it appears and

inserting ‘‘Commissioner of Social Security’’;
H. R. 4277—22

(B) by striking ‘‘Secretary’s’’ each place it appears and

inserting ‘‘Commissioner’s’’;

(C) in the first sentence of subsection (a), by striking

‘‘under the direction of the Commissioner of Social Security,’’; and

(D) in subsection (d)(6), by striking ‘‘Department of

Health Services and inserting ‘‘Social Security Administration’’.

(14) Section 1155 of such Act (42 U.S.C. 1320c–4) is

amended by striking ‘‘(to the same extent as is provided in

section 205(b))’’ and all that follows and inserting ‘‘(to the

same extent as beneficiaries under title II are entitled to a

hearing by the Commissioner of Social Security under section

205(b)). For purposes of the preceding sentence, subsection

(l) of section 205 shall apply, except that any reference in

such subsection to the Commissioner of Social Security or the

Social Security Administration shall be deemed a reference

to the Secretary or the Department of Health and Human

Services, respectively. Where the amount in controversy is

$2,000 or more, such beneficiary shall be entitled to judicial

review of any final decision relating to a reconsideration

described in this subsection.’’.

(c) AMENDMENTS TO TITLE XVIII.—

(1) Section 1817 of such Act (42 U.S.C. 1395i) is amended—

(A) in subsection (a), by striking ‘‘Secretary of Health

and Human Services’’ each place it appears and inserting

‘‘Commissioner of Social Security’’;

(B) in subsection (b), by inserting ‘‘the Commissioner

of Social Security,’’ before ‘‘the Secretary of the Treasury’’;

and

(C) in subsection (f), by striking ‘‘Secretary of Health

and Human Services’’ each place it appears and inserting

‘‘Commissioner of Social Security’’.

(2) Section 1840(a) of such Act (42 U.S.C. 1395s(a)) is

amended—

(A) in paragraph (1), by striking ‘‘Secretary’’ and inserting ‘‘Commissioner of Social Security’’, and by adding at

the end the following new sentence: ‘‘Such regulations shall

be prescribed after consultation with the Secretary.’’; and (B) in paragraph (2), by striking ‘‘Secretary of Health

and Human Services’’ and inserting ‘‘Commissioner of

Social Security’’.

(3) Section 1841(b) of such Act (42 U.S.C. 1395t) is amended

by inserting ‘‘the Commissioner of Social Security,’’ before ‘‘the

Secretary of the Treasury’’.

(4) Section 1872 of such Act (42 U.S.C. 1395ii) is amended

by inserting after ‘‘title II’’ the following: ‘‘, except that, in

applying such provisions with respect to this title, any reference

therein to the Commissioner of Social Security or the Social

Security Administration shall be considered a reference to the

Secretary or the Department of Health and Human Services,

respectively’’.

(5) Sections 1866(h)(1), 1869(b)(1), and 1881(g)(3) of such

Act (42 U.S.C. 1395cc(h)(1), 1395ff(b)(1), 1395rr(g)(3)) are

amended by inserting after ‘‘section 205(g)’’ the following: ‘‘,

except that, in so applying such sections and in applying section

205(l) thereto, any reference therein to the Commissioner of
H. R. 4277—23

Social Security or the Social Security Administration shall be

considered a reference to the Secretary or the Department

of Health and Human Services, respectively’’.

(6) Section 1876(c)(5)(B) of such Act (42 U.S.C.

1395mm(c)(5)(B)) is amended by adding at the end the following: ‘‘In applying sections 205(b) and 205(g) as provided in

this subparagraph, and in applying section 205(l) thereto, any

reference therein to the Commissioner of Social Security or

the Social Security Administration shall be considered a reference to the Secretary or the Department of Health and

Human Services, respectively.’’.

(d) AMENDMENTS TO TITLE XIX.—

(1) Section 1902(a)(10)(A)(ii)(XI) of such Act (42 U.S.C.

1396a(a)(10)(A)(ii)(XI)) is amended by striking ‘‘Secretary’’ and

inserting ‘‘Commissioner of Social Security’’.

(2) Section 1905(j) of such Act (42 U.S.C. 1396d(j)) is

amended by striking ‘‘Secretary’’ and inserting ‘‘Commissioner

of Social Security’’.

(3) Section 1905(q)(2) of such Act (42 U.S.C. 1396d(q)(2))

is amended by striking ‘‘Secretary’’ and inserting ‘‘Commissioner of Social Security’’.

(4) Section 1910(b)(2) of such Act (42 U.S.C. 1396i(b)(2))

is amended, in the first sentence, by inserting after ‘‘section

205(g)’’ the following: ‘‘, except that, in so applying such sections

and in applying section 205(l) thereto, any reference therein

to the Commissioner of Social Security or the Social Security

Administration shall be considered a reference to the Secretary

or the Department of Health and Human Services, respectively’’. (5) Section 1918 of such Act (42 U.S.C. 1396q) is amended

by inserting after ‘‘title II’’ the following: ‘‘, except that, in

so applying such subsections, and in applying section 205(l)

thereto, with respect to this title, any reference therein to

the Commissioner of Social Security or the Social Security

Administration shall be considered a reference to the Secretary

or the Department of Health and Human Services, respectively’’.

(e) AMENDMENTS TO TITLE 5, UNITED STATES CODE.—Title 5,

United States Code, is amended—

(1) by adding at the end of section 5312 the following

new item:

‘‘Commissioner of Social Security, Social Security Administration.’’;

(2) by adding at the end of section 5313 the following

new item:

‘‘Deputy Commissioner of Social Security, Social Security

Administration.’’;

(3) by adding at the end of section 5315 the following

new item:

‘‘Inspector General, Social Security Administration.’’;

(4) by striking ‘‘Secretary of Health, Education, and Welfare’’ each place it appears in section 8141 and inserting

‘‘Commissioner of Social Security’’; and

(5) by striking ‘‘Secretary of Health and Human Services’’

in section 8347(m)(3) and inserting ‘‘Commissioner of Social

Security’’.

(f) AMENDMENTS TO FOOD STAMP ACT OF 1977.—
H. R. 4277—24

(1) Sections 6(c)(3) and 8(e)(6) of the Food Stamp Act of

1977 (7 U.S.C. 2015(c)(3) and 2017(e)(6)) are each amended

by inserting ‘‘the Commissioner of Social Security and’’ before

‘‘the Secretary of Health and Human Services’’.

(2) Sections 6(g), 11(j), and 16(e) of such Act (7 U.S.C.

2015(g), 2020(j), and 2025(e)) are each amended by striking

‘‘Secretary of Health and Human Services’’ each place it appears

and inserting ‘‘Commissioner of Social Security’’.

(3) Section 11(i) of such Act (7 U.S.C. 2020(i)) is amended

by adding ‘‘, the Commissioner of Social Security’’ after ‘‘the

Secretary’’.

(g) AMENDMENT TO TITLE 14, UNITED STATES CODE.—Section

707(e)(3) of title 14, United States Code, is amended by striking

‘‘Secretary of Health and Human Services’’ each place it appears

and inserting ‘‘Commissioner of Social Security’’.

(h) AMENDMENTS TO INTERNAL REVENUE CODE OF 1986.—

(1) Subsections (c)(1), (c)(2)(E), (e)(2), (g)(1), (g)(2)(A), and

(g)(2)(B) of section 1402 of the Internal Revenue Code of 1986

are amended by striking ‘‘Secretary of Health and Human

Services’’ each place it appears and inserting ‘‘Commissioner

of Social Security’’.

(2) Section 3121(b)(10)(B) of such Code is amended by

striking ‘‘Secretary of Health and Human Services’’ each place

it appears and inserting ‘‘Commissioner of Social Security’’.

(3) Section 3127 of such Code is amended by striking ‘‘Secretary of Health and Human Services’’ each place it appears

and inserting ‘‘Commissioner of Social Security’’.

(4) Section 6050F(c)(1)(A) of such Code is amended by

striking ‘‘Secretary of Health and Human Services’’ and inserting ‘‘Commissioner of Social Security’’. (5) Subsections (d) and (f) of section 6057 of such Code

are amended by striking ‘‘Secretary of Health and Human

Services’’ each place it appears and inserting ‘‘Commissioner

of Social Security’’. (6) Section 6103(l)(5) of such Code is amended—

(A) by striking ‘‘DEPARTMENT OF HEALTH AND HUMAN

SERVICES’’ in the heading and inserting ‘‘SOCIAL SECURITY

ADMINISTRATION’’; and

(B) by striking ‘‘Secretary of Health and Human Services’’ and inserting ‘‘Commissioner of Social Security’’.

(7) Subsections (d)(3)(C) and (e) of section 6402 of such

Code are amended by striking ‘‘Secretary of Health and Human

Services’’ each place it appears and inserting ‘‘Commissioner

of Social Security’’. (8) Section 6511(d)(5) of such Code is amended by striking

‘‘Secretary of Health and Human Services’’ and inserting

‘‘Commissioner of Social Security’’.

(9)(A) Subsections (b)(2) and (h) of section 9704 of such

Code are amended by striking ‘‘Secretary of Health and Human

Services’’ and inserting ‘‘Commissioner of Social Security’’.

(B) Section 9706 of such Code is amended—

(i) by striking ‘‘Secretary of Health and Human Services’’ each place it appears and inserting ‘‘Commissioner

of Social Security’’;

(ii) in such section as amended by clause (i), by striking

‘‘Secretary’’ each place it appears and inserting ‘‘Commissioner’’; and
H. R. 4277—25

(iii) in subsection (d)(3), by striking ‘‘Secretary’s’’ and

inserting ‘‘Commissioner’s’’.

(i) AMENDMENTS TO BLACK LUNG BENEFITS ACT.—

(1) Section 402(c) of the Black Lung Benefits Act (30 U.S.C.

902(c)) is amended by striking ‘‘where used in part B’’ and

all that follows through ‘‘part C’’ and inserting ‘‘where used

in part C’’.

(2) Part B of such Act (30 U.S.C. 921 et seq.) is amended

by striking ‘‘Secretary of Health, Education, and Welfare’’ each

place it appears and inserting ‘‘Commissioner of Social Security’’, and by striking ‘‘Secretary’’ each place it otherwise

appears in reference to the Secretary of Health and Human

Services and inserting ‘‘Commissioner of Social Security’’.

(3) Section 426 of such Act (30 U.S.C. 936) is amended—

(A) in subsection (a), by striking ‘‘and the Secretary

of Health, Education, and Welfare’’ and inserting ‘‘, the

Commissioner of Social Security, and the Secretary of

Health and Human Services’’; and

(B) in subsection (b), by striking ‘‘the Secretary of

Health, Education, and Welfare’’ and inserting ‘‘the

Commissioner of Social Security’’.

(4) Section 435 of such Act (30 U.S.C. 945) is amended

by striking ‘‘Secretary of Health, Education, and Welfare’’ each

place it appears and inserting ‘‘Commissioner of Social Security’’.

(5) Section 508 of such Act (30 U.S.C. 957) is amended

by striking ‘‘the Secretary of Health, Education, and Welfare,’’

and inserting ‘‘the Secretary of Health and Human Services,

the Commissioner of Social Security,’’.

(j) AMENDMENTS TO TITLE 31, UNITED STATES CODE.— (1) Section 901(b)(2) of title 31, United States Code, is

amended by adding at the end the following: ‘‘(H) The Social Security Administration.’’. (2) Section 3720A(f)(2) of such title is amended by striking

‘‘Secretary of Health and Human Services’’ each place it appears

and inserting ‘‘Commissioner of Social Security’’.

(k) AMENDMENTS TO TITLE 38, UNITED STATES CODE.—Section

5105 of title 38, United States Code, is amended—

(1) by striking ‘‘Secretary of Health and Human Services’’

each place it appears and inserting ‘‘Commissioner of Social

Security’’; and (2) by striking the second sentence of subsection (b) and

inserting the following new sentence: ‘‘A copy of each such

application filed with either the Secretary or the Commissioner,

together with any additional information and supporting documents (or certifications thereof) which may have been received

by the Secretary or the Commissioner with such application,

and which may be needed by the other official in connection

therewith, shall be transmitted by the Secretary or the Commissioner receiving the application to the other official.’’.

(l) AMENDMENTS TO INSPECTOR GENERAL ACT OF 1978.—

(1) Section 9(a)(1) of the Inspector General Act of 1978

(5 U.S.C. App.) is amended—

(A) by striking ‘‘and’’ at the end of subparagraph (V);

and

(B) by adding at the end the following new subparagraph:
H. R. 4277—26

‘‘(W) of the Social Security Administration, the functions of the Inspector General of the Department of Health

and Human Services which are transferred to the Social

Security Administration by the Social Security Independence and Program Improvements Act of 1994 (other than

functions performed pursuant to section 105(a)(2) of such

Act), except that such transfers shall be made in accordance

with the provisions of such Act and shall not be subject

to subsections (b) through (d) of this section; and’’.

(2) Section 11 of such Act (5 U.S.C. App.) is amended—

(A) in paragraph (1), by inserting ‘‘; or the Commissioner of Social Security, Social Security Administration’’

before ‘‘; as the case may be’’; and

(B) in paragraph (2), by inserting ‘‘, or the Social Security Administration’’ before ‘‘; as the case may be’’.

(m) SECTION 505 OF THE SOCIAL SECURITY DISABILITY AMENDMENTS OF 1980.—Section 505 of the Social Security Disability

Amendments of 1980 is amended—

(1) in subsection (a), by striking ‘‘Secretary of Health and

Human Services’’ and inserting ‘‘Commissioner of Social Security’’;

(2) in subsection (a)(3), by amending the first sentence

to read as follows: ‘‘In the case of any experiment or demonstration project under paragraph (1) which is initiated before June

10, 1996, the Commissioner may waive compliance with the

benefit requirements of title II of the Social Security Act, and

the Secretary of Health and Human Services may (upon the

request of the Commissioner) waive compliance with the benefits requirements of title XVIII of such Act, insofar as is necessary for a thorough evaluation of the alternative methods

under consideration.’’; and

(3) in subsections (a) and (c), by striking ‘‘Secretary’’ each

place it otherwise appears and inserting ‘‘Commissioner’’.

SEC. 109. 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 title or a provision of law amended by this

title), regulation, rule, record, or 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 or other

functions performed by the Social Security Administration pursuant

to section 105(a)(2) of this 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 title or a provision of law amended by this

title), regulation, rule, record, or document to the Secretary of

Health and Human Services with respect to such Secretary’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 or other functions

performed by the Commissioner of Social Security pursuant to

section 105(a)(2) of this Act, such reference shall be considered

a reference to the Commissioner of Social Security.
H. R. 4277—27

(c) REFERENCES TO OTHER OFFICERS AND EMPLOYEES.—Whenever any reference is made in any provision of law (other than

this title or a provision of law amended by this title), regulation,

rule, record, or document to any other officer or employee of the

Department of Health and Human Services with respect to such

officer or employee’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 or other functions performed by the officer or employee

of the Social Security Administration pursuant to section 105(a)(2)

of this Act, such reference shall be considered a reference to the

appropriate officer or employee of the Social Security Administration.

SEC. 110. EFFECTIVE DATES.

(a) IN GENERAL.—Except as otherwise provided in this title,

this title, and the amendments made by such title, shall take

effect March 31, 1995.

(b) TRANSITION RULES.—Section 106 shall take effect on the

date of the enactment of this Act.

(c) EXCEPTIONS.—The amendments made by section 103, sub- sections (b)(4) and (c) of section 105, and subsections (a)(1), (e)(1),

(e)(2), (e)(3), and (l)(2) of section 108 shall take effect on the date

of the enactment of this Act.

TITLE II—PROGRAM IMPROVEMENTS

RELATING TO OASDI AND SSI

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 ‘‘(A)’’ after ‘‘(j)(1)’’;

(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’’; and

(iii) by adding at the end the following new

subparagraph:

‘‘(B) 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. In any case in which such certification is so deemed under this subparagraph to serve the interest

of an individual, the Secretary shall include, in such individual’s

notification of entitlement, a notice that alcoholism or drug addiction is a contributing factor material to the Secretary’s determination of such individual’s disability and that the Secretary is

therefore required to make a certification of payment of such

individual’s benefits to a representative payee.’’.
H. R. 4277—28

(B) CONFORMING AMENDMENT.—Section

205(j)(2)(D)(ii)(II) of such Act (42 U.S.C. 402(j)(2)(D)(ii)(II))

is amended by striking ‘‘or under the age of 15’’ and inserting ‘‘, under the age of 15 years, or (if alcoholism or drug

addiction is a contributing factor material to the Secretary’s

determination that the individual is under a disability)

is eligible for benefits under this title by reason of disability.’’.

(C) 90-DAY DELAY IN DEFERRAL OR SUSPENSION OF

BENEFITS FOR CURRENT BENEFICIARIES.—In the case of an

individual who, as of 180 days after the date of the enactment of this Act, has been determined to be under a disability, if alcoholism or drug addiction is a contributing factor

material to the determination of the Secretary of Health

and Human Services that the individual is under a disability, the Secretary may, notwithstanding clauses (i) and

(ii) of section 205(j)(2)(D) of the Social Security Act, make

direct payment of benefits to such individual during the

90-day period commencing with the date on which such

individual is provided the notice described in subparagraph

(D)(ii) of this paragraph, until such time during such period

as the selection of a representative payee is made pursuant

to section 205(j) of such Act.

(D) EFFECTIVE DATE.—

(i) GENERAL RULE.—Except as provided in clause

(ii), the amendments made by this paragraph shall

apply with respect to benefits paid in months beginning

after 180 days after the date of the enactment of this

Act.

(ii) TREATMENT OF CURRENT BENEFICIARIES.—In

any case in which—

(I) an individual is entitled to benefits based

on disability (as defined in section 205(j)(7) of the

Social Security Act, as amended by this section),

(II) the determination of disability was made

by the Secretary of Health and Human Services

during or before the 180-day period following the

date of the enactment of this Act, and

(III) alcoholism or drug addiction is a contributing factor material to the Secretary’s determination that the individual is under a disability,

the amendments made by this paragraph shall apply

with respect to benefits paid in months after the month

in which such individual is notified by the Secretary

in writing that alcoholism or drug addiction is a

contributing factor material to the Secretary’s determination and that the Secretary is therefore required

to make a certification of payment of such individual’s

benefits to a representative payee.

(E) 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 rep-
H. R. 4277—29

resentative 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, cost, and equity of 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 December 31, 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 Federal, State, or local government agency whose

mission is to carry out income maintenance, social service,

or health care-related activities,

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

responsibilities, or

‘‘(IV) a designee of an agency (other than of a Federal

agency) referred to in the preceding subclauses of this clause,

if the Secretary deems it appropriate,

unless the Secretary determines that selection of a family member

would be appropriate.’’.
H. R. 4277—30

(B) AVAILABILITY OF PUBLIC AGENCIES AND OTHER

QUALIFIED ORGANIZATIONS TO SERVE AS REPRESENTATIVE

PAYEES.—

(i) ALLOWABLE FEES.—Section 205(j)(4)(A) of such

Act (42 U.S.C. 405(j)(4)) is amended—

(I) by redesignating clauses (i) and (ii) as

subclauses (I) and (II), respectively;

(II) by inserting ‘‘(i)’’ after ‘‘(4)(A)’’;

(III) by striking subclause (II) (as redesignated

by subclause (I) of this clause) and inserting the

following:

‘‘(II) $25.00 per month ($50.00 per month in any case

in which the 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).’’;

(IV) by inserting, after and below subclause

(II) (as amended), the following new sentence:

‘‘The Secretary shall adjust annually (after 1995) each dollar

amount set forth in subclause (II) under procedures providing for

adjustments in the same manner and to the same extent as adjustments are provided for under the procedures used to adjust benefit

amounts under section 215(i)(2)(A), except that any amount so

adjusted that is not a multiple of $1.00 shall be rounded to the

nearest multiple of $1.00.’’; and

(V) by adding at the end the following new

clause:

‘‘(ii) In the case of an individual who is no longer currently

entitled to monthly insurance benefits under this title but to whom

all past-due benefits have not been paid, for purposes of clause

(i), any amount of such past-due benefits payable in any month

shall be treated as a monthly benefit referred to in clause (i)(I).’’.

(ii) INCLUSION OF STATE AND LOCAL AGENCIES AS

QUALIFIED ORGANIZATIONS.—Section 205(j)(4)(B) of

such Act (42 U.S.C. 405(j)(4)(B)) is amended—

(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).

(iii) RETROACTIVE REPEAL OF SUNSET.—Effective

July 1, 1994, section 205(j)(4) of such Act (42 U.S.C.

405(j)(4)) is amended by striking subparagraph (D).

(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 widow-
H. R. 4277—31

er’s insurance benefit of such individual under section 202 based

on such individual’s disability.’’.

(D) EFFECTIVE DATE.—Except as provided in subparagraph (B)(iii), the amendments made by this paragraph

shall apply with respect to months beginning after 90 days

after the date of the enactment of this Act.

(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) 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, such individual shall comply with the provisions of this subsection. In any case in which an individual is

required to comply with the provisions of this subsection, the Secretary shall include, in such individual’s notification of entitlement,

a notice informing such individual of such requirement. ‘‘(B) Notwithstanding any other provision of this title, if an individual who is required under subparagraph (A) to comply with

the provisions of this subsection is determined by the Secretary

not to be in compliance with the provisions of this subsection,

such individual’s benefits based on disability shall be suspended

for a period—

‘‘(i) commencing with the first month following the month

in which such individual is notified by the Secretary of the

determination of noncompliance and that the individual’s benefits will be suspended, and

‘‘(ii) 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 provisions for the applicable

period specified in paragraph (3).

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

with the requirements of this subsection for a month if in such

month—

‘‘(i) such individual undergoes substance abuse treatment

which is appropriate for such individual’s condition diagnosed

as alcoholism or drug addiction and for the stage of such

individual’s rehabilitation and which is conducted at an institu-
H. R. 4277—32

tion or facility approved for purposes of this subsection by

the Secretary, and

‘‘(ii) such individual complies in such month with the terms,

conditions, and requirements of such treatment and with

requirements imposed by the Secretary under paragraph (5).

‘‘(B) An individual described in paragraph (1) may be determined as failing to comply with the requirements of this subsection

for a month only if treatment meeting the requirements of subparagraph (A)(i) is available for that month, as determined pursuant

to 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, or

‘‘(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), the termination month with respect to such entitlement.

‘‘(5)(A) The Secretary shall provide for the monitoring and

testing of individuals who are receiving benefits under this title

and who as a condition of payment of such benefits are required

to be undergoing treatment under paragraph (1) and complying

with the terms, conditions, and requirements thereof as described

in paragraph (2)(A), in order to assure such compliance.

‘‘(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 appropriate substance abuse treatment required under this subsection, and

‘‘(ii) establishing guidelines to be used to review and evaluate their compliance, including measures of the progress

expected to be achieved by participants in such programs.

‘‘(C)(i) For purposes of carrying out the requirements of subparagraphs (A) and (B), the Secretary shall provide for the establishment of one or more referral and monitoring agencies for each

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.
H. R. 4277—33

‘‘(D) There are authorized to be transferred from the Federal

Old-Age and Survivors Insurance Trust Fund and the Federal

Disability Insurance Trust Fund such sums as are necessary to

carry out the requirements of this paragraph for referral, monitoring, and testing.

‘‘(6)(A) 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 pastdue 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—

‘‘(i) the amount of such past-due benefit paid in such month,

and

‘‘(ii) the amount of any benefit for the preceding month

under such current entitlement which is payable in such month,

does not exceed, subject to subparagraph (B), twice the amount

of such individual’s benefit for the preceding month (determined

without applying any reductions or deductions under this title).

‘‘(B)(i) In the case of an individual who is no longer currently

entitled to monthly insurance benefits under this title but to whom

any amount of past-due benefits has not been paid, for purposes

of subparagraph (A), such individual’s monthly insurance benefit

for such individual’s last month of entitlement shall be treated

as such individual’s benefit for the preceding month.

‘‘(ii) For the first month in which an individual’s past-due

benefits referred to in subparagraph (A) are paid, the amount

of the limitation provided in subparagraph (A) shall be increased

by the amount of any debts of such individual related to housing

which are outstanding as of the end of the preceding month

and which are resulting in a high risk of homelessness for such

individual.

‘‘(C) Upon the death of an individual to whom payment of past-due benefits has been limited under subparagraph (A), any

amount of such past-due benefits remaining unpaid shall be treated

as an underpayment for purposes of section 204. ‘‘(D) In the case of an individual who would be entitled to

benefits based on disability but for termination of such benefits

under paragraph (4) or (7), such individual shall be entitled to

payment of past-due benefits under this paragraph as if such

individual continued to be entitled to such terminated benefits.

‘‘(7)(A) Subject to subparagraph (B), in the case of any individual entitled to benefits based on disability, if— ‘‘(i) alcoholism or drug addiction is a contributing factor

material to the Secretary’s determination that such individual

is under a disability, and

‘‘(ii) as of the end of the 36-month period beginning with

such individual’s first month of entitlement, such individual

would not otherwise be disabled but for alcoholism or drug

addiction,

the month following such 36-month 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), the termination month with

respect to such entitlement. Such individual whose entitlement

is terminated under this paragraph may not be entitled to benefits

based on disability for any month following such 36-month period

if, in such following month, alcoholism or drug addiction is a contrib-
H. R. 4277—34

uting factor material to the Secretary’s determination that such

individual is under a disability.

‘‘(B) In determining whether the 36-month period referred to

in subparagraph (A) has elapsed—

‘‘(i) a month shall not be taken into account unless the

Secretary determines, under regulations of the Secretary, that

treatment required under this subsection is available to the

individual for the month, and

‘‘(ii) any month for which a suspension is in effect for

the individual under paragraph (1)(B) shall not be taken into

account.

‘‘(8) 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), (4),

or (7) shall be payable as though such paragraph did not apply.

‘‘(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) REPORT.—Not later than December 31, 1996, the

Secretary shall submit to the Committee on Ways and

Means of the House of Representatives and the Committee

on Finance of the Senate a full and complete report on

the Secretary’s activities under paragraph (5) of section

225(c) of the Social Security Act (as amended by subparagraph (A)). Such report shall include the number and

percentage of individuals referred to in such paragraph

who have not received regular drug testing since the effective date of such paragraph. (C) SUNSET OF 36-MONTH RULE.—Section 225(c)(7) of

the Social Security Act (added by subparagraph (A)) shall

cease to be effective with respect to benefits for months

after September 2004.

(D) PRESERVATION OF MEDICARE BENEFITS.— (i) 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 monthly

insurance benefit for any month is terminated or is otherwise

not payable solely by reason of paragraph (1) or (7) of section

225(c) shall be treated as entitled to such benefit for such month.’’.

(ii) Section 226A of such Act (42 U.S.C. 426A)

is amended by adding at the end the following:

‘‘(c) For purposes of this section, each person whose monthly

insurance benefit for any month is terminated or is otherwise

not payable solely by reason of paragraph (1) or (7) of section

225(c) shall be treated as entitled to such benefit for such month.’’.

(E) EFFECTIVE DATE.—

(i) IN GENERAL.—Except as otherwise provided in

this paragraph, the amendments made 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) which are otherwise payable in months beginning after 180 days after

the date of the enactment of this Act. The Secretary
H. R. 4277—35

of Health and Human Services shall issue regulations

necessary to carry out the amendments made by this

paragraph not later than 180 days after the date of

the enactment of this Act.

(ii) REFERRAL AND MONITORING AGENCIES.—Section

225(c)(5) of the Social Security Act (added by this subsection) shall take effect 180 days after the date of

the enactment of this Act.

(iii) TERMINATION AFTER 36 MONTHS.—Section

225(c)(7) of the Social Security Act (added by this subsection) shall apply with respect to benefits based on

disability (as so defined) for months beginning after

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

(F) TRANSITION RULES FOR CURRENT BENEFICIARIES.—

In any case in which an individual is entitled to benefits

based on disability, the determination of disability was

made by the Secretary of Health and Human Services

during or before the 180-day period following the date

of the enactment of this Act, and alcoholism or drug addiction is a contributing factor material to the Secretary’s

determination that the individual is under a disability—

(i) TREATMENT REQUIREMENT.—Paragraphs (1)

through (4) of section 225(c) of the Social Security

Act (added by this subsection) shall apply only with

respect to benefits paid in months after the month

in which such individual is notified by the Secretary

in writing that alcoholism or drug addiction is a

contributing factor material to the Secretary’s determination and that such individual is therefore required

to comply with the provisions of section 225(c) of such

Act.

(ii) TERMINATION AFTER 36 MONTHS.— (I) IN GENERAL.—For purposes of section

225(c)(7) of the Social Security Act (added by this

subsection), the first month of entitlement beginning after 180 days after the date of the enactment

of this Act shall be treated as the individual’s

first month of entitlement to such benefits.

(II) CONCURRENT BENEFICIARIES CURRENTLY

UNDER TREATMENT.—In any case in which the

individual is also entitled to benefits under title

XVI and, as of 180 days after the date of the

enactment of this Act, such individual is undergoing treatment required under section 1611(e)(3)

of the Social Security Act (as in effect immediately

before the date of the enactment of this Act), the

Secretary of Health and Human Services shall

notify such individual of the provisions of section

225(c)(7) of the Social Security Act (added by this

subsection) not later than 180 days after the date

of the enactment of this Act.

(III) CONCURRENT BENEFICIARIES NOT CURRENTLY UNDER TREATMENT.—In any case in which

the individual is also entitled to benefits under

title XVI but, as of 180 days after the date of

the enactment of this Act, such individual is not

undergoing treatment described in subclause (II),
H. R. 4277—36

section 225(c)(7) (added by this subsection) shall

apply only with respect to benefits for months

after the month in which treatment required under

section 1611(e)(3) of the Social Security Act (as

amended by subsection (b)) is available, as determined under regulations of the Secretary of Health

and Human Services, and the Secretary notifies

such individual of the availability of such treatment and describes in such notification the provisions of section 225(c)(7) of the Social Security

Act (added by this subsection).

(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

shall apply the criteria described in subparagraph (A) with respect

to services performed by any individual without regard to the

legality of such services.’’.

(B) CONFORMING AMENDMENT RELATING TO TRIAL

WORK.—Section 222(c)(2) of such Act (42 U.S.C. 422(c)(2))

is amended by inserting ‘‘(whether legal or illegal)’’ after

‘‘activity’’.

(C) 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)—

(I) by inserting ‘‘(I)’’ after ‘‘(ii)’’;

(II) by striking ‘‘or in the case of any individual

or eligible spouse referred to in section

1611(e)(3)(A),’’; and

(III) by adding after and below the end the

following:

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

the individual under this title. In any case in which such payment

is so deemed under this subclause to serve the interest of an

individual, the Secretary shall include, in the individual’s notification of such eligibility, a notice that alcoholism or drug addiction

is a contributing factor material to the Secretary’s determination

that the individual is disabled and that the Secretary is therefore
H. R. 4277—37

required to pay the individual’s benefits to a representative payee.’’;

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 eligible for benefits under this title by reason

of disability.’’.

(C) EFFECTIVE DATE.—The amendments made by this

paragraph shall apply with respect to 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)), as amended by paragraph (1)(B)

of this subsection, 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 eligible for 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 Federal, State, or local government agency whose

mission is to carry out income maintenance, social service,

or health care-related activities;

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

responsibilities; or

‘‘(IV) a designee of an agency (other than of a Federal agency) referred to in the preceding subclauses of this clause,

if the Secretary deems it appropriate,

unless the Secretary determines that selection of a family member

would 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.—
H. R. 4277—38

(i) ALLOWABLE FEES.—Section 1631(a)(2)(D) of such

Act (42 U.S.C. 1383(a)(2)(D)) is amended—

(I) in clause (i)—

(aa) by striking subclause (II) and inserting the following:

‘‘(II) $25.00 per month ($50.00 per month in any case

in which an individual is eligible for 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).’’; and

(bb) by inserting after the 1st sentence

the following:

‘‘The Secretary shall adjust annually (after 1995) each dollar

amount set forth in subclause (II) of this clause under procedures

providing for adjustments in the same manner and to the same

extent as adjustments are provided for under the procedures used

to adjust benefit amounts under section 215(i)(2)(A), except that

any amount so adjusted that is not a multiple of $1.00 shall be

rounded to the nearest multiple of $1.00.’’; and

(II) by adding at the end the following:

‘‘(v) In the case of an individual who is no longer eligible

for benefits under this title but to whom any amount of pastdue benefits under this title has not been paid, for purposes of

clause (i), any amount of such past-due benefits payable in any

month shall be treated as a monthly benefit referred to in clause

(i)(I).’’.

(ii) INCLUSION OF STATE AND LOCAL AGENCIES AS

QUALIFIED ORGANIZATIONS.—Section 1631(a)(2)(D)(ii) of

such Act (42 U.S.C. 1383(a)(2)(D)(ii)) is amended—

(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).

(iii) RETROACTIVE REPEAL OF SUNSET.—

(I) REPEAL.—Effective July 1, 1994, section

1631(a)(2)(D) of such Act (42 U.S.C. 1383(a)(2)(D))

is amended by striking clause (iv).

(II) CONFORMING AMENDMENT.—Section

1631(a)(2)(D) of such Act (42 U.S.C. 1383(a)(2)(D))

is amended by redesignating clause (v) (as added

by clause (i)(II) of this subparagraph) as clause

(iv).

(C) EFFECTIVE DATE.—Except as provided in subparagraph (B)(iii)(I), the amendments made by this paragraph
H. R. 4277—39

shall apply with respect to months beginning after 90 days

after the date of the enactment of this Act.

(3) NONPAYMENT OR TERMINATION OF BENEFITS.—

(A) IN GENERAL.—Section 1611(e)(3)(A) of such Act (42

U.S.C. 1382(e)(3)(A)) is amended to read as follows:

‘‘(A)(i)(I) In the case of any individual eligible for 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 the individual is disabled, the individual shall comply

with the provisions of this subparagraph. In any case in which

an individual is required to comply with the provisions of this

subparagraph, the Secretary shall include in the individual’s

notification of such eligibility a notice informing the individual

of such requirement.

‘‘(II) Notwithstanding any other provision of this title, if an

individual who is required under subclause (I) to comply with

the requirements of this subparagraph is determined by the Secretary not to be in compliance with the provisions of this subparagraph, the individual’s benefits under this title by reason of

disability shall be suspended for a period—

‘‘(aa) commencing with the first month following the month

in which the individual is notified by the Secretary of the

determination of noncompliance and that the individual’s benefits will be suspended; and

‘‘(bb) ending with the month preceding the first month,

after the determination of noncompliance, in which the individual demonstrates that he or she has reestablished and maintained compliance with such provisions 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 in

such month—

‘‘(aa) the individual undergoes substance abuse treatment,

which is appropriate for the individual’s condition diagnosed

as alcoholism or drug addiction and for the stage of the individual’s rehabilitation and which is conducted at an institution

or facility approved for purposes of this subparagraph by the

Secretary; and ‘‘(bb) the individual complies in such month with the terms,

conditions, and requirements of the treatment and with requirements imposed by the Secretary under this paragraph.

‘‘(II) An individual described in clause (i) may be determined

as failing to comply with the requirements of this subparagraph

for a month only if treatment meeting the requirements of subclause

(I)(aa) is available for the month, as determined pursuant to 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 who is not in compliance with this paragraph

for 12 consecutive months shall not be eligible for supplemental

security income benefits under this title. The preceding sentence
H. R. 4277—40

shall not be construed to prevent the individual from reapplying

and becoming eligible for such benefits.

‘‘(v)(I) In the case of any individual eligible for benefits under

this title by reason of disability, if—

‘‘(aa) alcoholism or drug addiction is a contributing factor

material to the Secretary’s determination that the individual

is disabled; and

‘‘(bb) as of the end of the 36-month period beginning with

the 1st month for which such benefits by reason of disability

are payable to the individual, the individual would not otherwise be disabled but for alcoholism or drug addiction,

the individual shall not be eligible for such benefits by reason

of disability for any month following such 36-month period if, in

such following month, alcoholism or drug addiction would be a

contributing factor material to the Secretary’s determination that

the individual is disabled, notwithstanding section 1619(a).

‘‘(II) An individual whose entitlement to benefits under title

II based on disability has been terminated by reason of section

225(c)(7) shall not be eligible for 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, for any month after the individual’s termination month

(within the meaning of section 223(a)(1) or subsection (d)(1)(G)(i),

(e)(1), or (f)(1) of section 202, as applicable) with respect to such

benefits.

‘‘(III) Any month for which a suspension is in effect for the

individual under clause (i)(II) shall not be taken into account in

determining whether any 36-month period referred to in this clause

has elapsed.

‘‘(vi)(I) In the case of any individual who is eligible for benefits

under this title for any month solely by reason of disability, if

alcoholism or drug addiction is a contributing factor material to

the Secretary’s determination that the individual is disabled, payment of any benefits under this title the payment of which is

past due shall be made in any month only to the extent that

the sum of—

‘‘(aa) the amount of the past-due benefit paid in the month;

and

‘‘(bb) the amount of any benefit under this title which

is payable to the individual for the month,

does not exceed twice the maximum benefit payable under this

title to an eligible individual for the preceding month. ‘‘(II) For the first month in which an individual’s past-due

benefits referred to in subclause (I) are paid, the amount of the

limitation provided in subclause (I) shall be increased by the amount

of any debts of the individual related to housing which are outstanding as of the end of the preceding month and which are resulting

in a high risk of homelessness for the individual.

‘‘(III) Upon the death of an individual to whom payment of

past-due benefits has been limited under subclause (I), any amount

of such past-due benefits remaining unpaid shall be treated as

an underpayment for purposes of section 1631(b)(1)(A).

‘‘(IV) As used in this clause, the term ‘benefits under this

title’ includes supplementary payments pursuant to an agreement

for Federal administration under section 1616(a), and payments

pursuant to an agreement entered into under section 212(b) of

Public Law 93–66.
H. R. 4277—41

‘‘(V) In the case of an individual who would be eligible for

benefits under this title by reason of disability but for termination

of such benefits under clause (iv) or (v), the individual shall be

eligible for payment of past-due benefits under this clause as if

the individual continued to be eligible for such terminated benefits.

‘‘(VI) Subclause (I) shall not apply to payments under section

1631(g).’’.

(B) REFERRAL, MONITORING, AND TREATMENT.—

(i) IN GENERAL.—Section 1611(e)(3)(B) of such Act

(42 U.S.C. 1382(e)(3)(B)) is amended—

(I) by inserting ‘‘(i)’’ after ‘‘(B)’’;

(II) by striking the 2nd sentence; and

(III) by adding after and below the end

the 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 appropriate substance abuse

treatment under this subparagraph; and

‘‘(II) establishing guidelines to be used to review and evaluate their compliance, including measures of the progress

expected to be achieved by participants in such programs.

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

(i) and (ii), the Secretary shall provide for the establishment of

1 or more referral and monitoring agencies for each State.

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

‘‘(aa) identify appropriate placements, for individuals residing in the State who are eligible for 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 (A)(ii)(I);

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

treatment; and

‘‘(cc) monitor compliance with the requirements of subparagraph (A) by individuals who are referred by the agency to

such placements, and promptly report to the Secretary any

failure to comply with such requirements.’’.

(ii) REPORT.—Not later than December 31, 1996,

the Secretary shall submit to the Committee on Ways

and Means of the House of Representatives and the

Committee on Finance of the Senate a full and complete report on the Secretary’s activities under section

1611(e)(3)(B) of the Social Security Act. The report

shall include the number and percentage of individuals

referred to in such paragraph who have not received

regular drug testing since the effective date of the

amendments made by clause (i) of this subparagraph.

(C) SUNSET OF 36-MONTH RULE.—Section

1611(e)(3)(A)(v) of the Social Security Act (added by

subparagraph (A) of this paragraph) shall cease to be effective with respect to benefits for months after September

2004.

(D) PRESERVATION OF MEDICAID BENEFITS.—Section

1634 of such Act (42 U.S.C. 13283c) is amended by adding

at the end the following:
H. R. 4277—42

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

of disability are not payable for any month solely by reason of

clause (i) or (v) of section 1611(e)(3)(A) shall be treated, for purposes

of title XIX, as receiving benefits under this title for the month.’’.

(E) EFFECTIVE DATE.—

(i) IN GENERAL.—Except as otherwise provided in

this paragraph, the amendments made by this paragraph shall apply with respect to supplemental security

income benefits under title XVI of the Social Security

Act by reason of disability which are otherwise payable

in months beginning after 180 days after the date

of the enactment of this Act. The Secretary of Health

and Human Services shall issue regulations necessary

to carry out the amendments made by this paragraph

not later than 180 days after such date of enactment.

(ii) REFERRAL AND MONITORING AGENCIES.—The

amendments made by subparagraph (B) shall take

effect 180 days after the date of the enactment of

this Act.

(iii) TERMINATION AFTER 36 MONTHS.—Clause (v)

of section 1611(e)(3)(A) of the Social Security Act

(added by the amendment made by subparagraph (A)

of this paragraph) shall apply with respect to supplemental security income benefits under title XVI of

the Social Security Act by reason of disability for

months beginning after 180 days after the date of

the enactment of this Act.

(F) TRANSITION RULES FOR CURRENT BENEFICIARIES.— In any case in which an individual is eligible for supplemental security income benefits under title XVI of the

Social Security Act by reason of disability, the determination of disability was made by the Secretary of Health

and Human Services during or before the 180-day period

following the date of the enactment of this Act, and alcoholism or drug addiction is a contributing factor material

to the Secretary’s determination that the individual is disabled, for purposes of section 1611(e)(3)(A)(v) of the Social

Security Act (added by the amendment made by subparagraph (A) of this paragraph)— (i) the first month of such eligibility beginning

after 180 days after the date of the enactment of this

Act shall be treated as the individual’s first month

of such eligibility; and (ii) the Secretary shall notify the individual of

the requirements of the amendments made by this

paragraph no later than 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.
H. R. 4277—43

(c) 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. The Secretary may include in such

demonstration projects individuals who are not described in

either subparagraph (A) or subparagraph (B) if the inclusion

of such individuals is necessary to determine the efficacy of

various monitoring, referral, and treatment approaches for

individuals described in subparagraph (A) or (B).

(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. 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;
H. R. 4277—44

(iv) the administration of disability programs; and

(v) social insurance (including health insurance); and

(C) 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;

(B) the feasibility of providing benefits to children through

noncash means, including but not limited to vouchers, debit

cards, and electronic benefit transfer systems;
H. R. 4277—45

(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) alternative ways and providing retroactive supple- mental security income benefits to disabled children, including

the desirability and feasibility of conserving some portion of

such benefits to promote the long-term well-being of such children;

(E) the desirability and methods of increasing the extent to which benefits are used in the effort to assist disabled

children in achieving independence and engaging in substantial

gainful activity; (F) the effects of the supplemental security income program on disabled children and their families; and

(G) 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. 203. 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 Secretary shall establish by regulation criteria for time limits and other criteria related to individuals’ plans for achieving self-support, that take into account— ‘‘(1) the length of time that the individual will need to achieve the individual’s employment goal (within such reasonable period as the Secretary may establish); and ‘‘(2) other factors determined by the Secretary to be appropriate.’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a) shall take effect on January 1, 1995.

SEC. 204. 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) For a period of not more than 1 year, 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 Secretary that

the absence of the individual from the United States will be—

‘‘(i) for not more than 1 year; and

‘‘(ii) for the purpose of conducting studies as part of

an educational program that is—

‘‘(I) designed to substantially enhance the ability

of the individual to engage in gainful employment;
H. R. 4277—46

‘‘(II) sponsored by a school, college, or university

in the United States; and

‘‘(III) not available to the individual in the United

States.’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall take effect on January 1, 1995.

SEC. 205. 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. 206. EXPANSION OF THE AUTHORITY OF THE SOCIAL SECURITY

ADMINISTRATION TO PREVENT, DETECT, AND TERMINATE

FRAUDULENT CLAIMS FOR OASDI AND SSI BENEFITS.

(a) PREVENTION OF FRAUD BY TRANSLATORS OF FOREIGN LANGUAGES.—

(1) OASDI PROGRAMS.—Section 205(c) of the Social Security

Act (42 U.S.C. 405(c)) is amended—

(A) by redesignating paragraph (8) as paragraph (9);

and

(B) by inserting after paragraph (7) the following:

‘‘(8) A translation into English by a third party of a statement

made in a foreign language by an applicant for or beneficiary

of monthly insurance benefits under this title shall not be regarded

as reliable for any purpose under this title 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) SSI PROGRAM.—Section 1631(e) of such 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 for any

purpose under this title 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.’’.

(3) EFFECTIVE DATE.—The amendments made by this subsection shall apply to translations made on or after October

1, 1994.

(b) CIVIL MONETARY PENALTIES, ASSESSMENTS, AND EXCLUSIONS

FOR TITLES II AND XVI.—
H. R. 4277—47

(1) IN GENERAL.—Title XI of the Social Security Act (42

U.S.C. 1301 et seq.) is amended by inserting after section

1128B the following:

‘‘SEC. 1129. CIVIL MONETARY PENALTIES AND ASSESSMENTS FOR

TITLES II AND XVI.

‘‘(a)(1) 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 or the amount of—

‘‘(A) monthly insurance benefits under title II, or

‘‘(B) 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 or makes such a

statement with knowing disregard for the truth 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 Secretary may

make a determination in the same proceeding to exclude, as provided in section 1128, such a person who is a medical provider

or physician 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 permanently

or for such period as the Secretary determines.

‘‘(2) For purposes of this section, a material fact is one which

the Secretary may consider in evaluating whether an applicant

is entitled to benefits under title II or eligible for benefits or

payments under title XVI.

‘‘(b)(1) The Secretary may initiate a proceeding to determine

whether to impose a civil money penalty or assessment, or whether

to recommend exclusion under subsection (a) only as authorized

by the Attorney General pursuant to procedures agreed upon by

the Secretary and the Attorney General. The Secretary 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 Secretary 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 Secretary 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 or State 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.
H. R. 4277—48

‘‘(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, for failing to defend an action,

or for such 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 pursuant to subsection (a) the amount or

scope of any penalty or assessment, or whether to recommend

an exclusion, the Secretary 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 Secretary 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 Secretary’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

Secretary, and thereupon the Secretary 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 Secretary and enforcing

the same to the extent that such order is affirmed or modified.

No objection that has not been urged before the Secretary 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 Secretary 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 addi-
H. R. 4277—49

tional 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 Secretary, the court may order such additional

evidence to be taken before the Secretary and to be made a part

of the record. The Secretary may modify such findings as to the

facts, or make new findings, by reason of additional evidence so

taken and filed, and the Secretary 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 the Secretary’s recommendations, if any, for the modification or setting aside of the Secretary’s

original order.

‘‘(3) Upon the filing of the record and the Secretary’s original

or modified order with the court, 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 Secretary 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 Secretary;

‘‘(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)(i) by decrease of any payment of monthly insurance

benefits under title II, notwithstanding section 207, or

‘‘(ii) by decrease of any payment under title XVI for which

the person is eligible, notwithstanding section 207, as made

applicable to title XVI 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.

‘‘(2) Amounts recovered under this section shall be recovered

by the Secretary and shall be disposed of as follows:

‘‘(A) In the case of amounts recovered arising out of a

determination relating to title II, the amounts shall be transferred to the Managing Trustee of the Federal Old-Age and

Survivors Insurance Trust Fund or the Federal Disability Insurance Trust Fund, as determined appropriate by the Secretary,

and such amounts shall be deposited by the Managing Trustee

into such Trust Fund.

‘‘(B) In the case of amounts recovered arising out of a

determination relating to title XVI, the amounts shall be depos-
H. R. 4277—50

ited by the Secretary into the general fund of the Treasury

as miscellaneous receipts.

‘‘(f) A determination pursuant to subsection (a) by the Secretary

to impose a penalty or assessment, or to recommend an exclusion

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 Secretary 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 or assessment

imposed under this section.

‘‘(g) Whenever the Secretary’s determination to impose a penalty or assessment under this section with respect to a medical

provider or physician becomes final, the provisions of section

1128A(h) shall apply.

‘‘(h) Whenever the Secretary 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 Secretary 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 Secretary may

delegate the authority granted by section 205(d) (as made applicable

to this section) to the Inspector General for purposes of any investigation under this section. ‘‘(2) The Secretary may delegate authority granted under this

section to the Inspector General.

‘‘(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 and assessments under

subsection (a), and for an exclusion under section 1128, 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 ‘‘, 1128B, or 1129’’; (B) in subsection (b)(8)(B)(ii), by inserting ‘‘or 1129’’

after ‘‘section 1128A’’; and

(C) in subsection (f)(3), by inserting ‘‘, 1129,’’ after

‘‘sections 1128A’’.

(3) EFFECTIVE DATE.—The amendments made by this subsection shall apply to conduct occurring on or after October

1, 1994.

(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:
H. R. 4277—51

‘‘(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 representative 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

representative payee under section 1631(a)(2).’’.

(3) EFFECTIVE DATE.—The amendments made by this subsection shall apply to conduct occurring on or after October

1, 1994.

(d) AUTHORITY TO REDETERMINE ELIGIBILITY IF FRAUD IS

INVOLVED, AND TO TERMINATE BENEFITS IF THERE IS INSUFFICIENT

RELIABLE EVIDENCE.—

(1) OASDI PROGRAMS.—Section 205 of the Social Security

Act (42 U.S.C. 405) is amended by adding at the end the

following:

‘‘(u)(1)(A) The Secretary shall immediately redetermine the

entitlement of individuals to monthly insurance benefits under this

title if there is reason to believe that fraud or similar fault 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 such

action by the Secretary with regard to beneficiaries in a particular

investigation would jeopardize the criminal prosecution of a person

involved in a suspected fraud.

‘‘(B) When redetermining the entitlement, or making an initial

determination of entitlement, of an individual under this title,

the Secretary shall disregard any evidence if there is reason to

believe that fraud or similar fault was involved in the providing

of such evidence.

‘‘(2) For purposes of paragraph (1), similar fault is involved

with respect to a determination if—

‘‘(A) an incorrect or incomplete statement that is material

to the determination is knowingly made; or ‘‘(B) information that is material to the determination is

knowingly concealed.

‘‘(3) If, after redetermining pursuant to this subsection the

entitlement of an individual to monthly insurance benefits, the

Secretary determines that there is insufficient evidence to support

such entitlement, the Secretary may terminate such entitlement

and may treat benefits paid on the basis of such insufficient evidence as overpayments.’’.

(2) SSI PROGRAM.—Section 1631(e) of such Act (42 U.S.C.

1383(e)) is amended by adding at the end the following:

‘‘(6)(A)(i) The Secretary shall immediately redetermine the eligibility of an individual for benefits under this title if there is reason

to believe that fraud or similar fault 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 such action by the Secretary with regard

to recipients in a particular investigation would jeopardize the

criminal prosecution of a person involved in a suspected fraud.
H. R. 4277—52

‘‘(ii) When redetermining the eligibility, or making an initial

determination of eligibility, of an individual for benefits under this

title, the Secretary shall disregard any evidence if there is reason

to believe that fraud or similar fault was involved in the providing

of such evidence.

‘‘(B) For purposes of subparagraph (A), similar fault is involved

with respect to a determination if—

‘‘(i) an incorrect or incomplete statement that is material

to the determination is knowingly made; or

‘‘(ii) information that is material to the determination is

knowingly concealed.

‘‘(C) If, after redetermining the eligibility of an individual for

benefits under this title, the Secretary determines that there is

insufficient evidence to support such eligibility, the Secretary may

terminate such eligibility and may treat benefits paid on the basis

of such insufficient evidence as overpayments.’’.

(3) EFFECTIVE DATE.—The amendments made by this subsection shall take effect on October 1, 1994, and shall apply

to determinations made before, on, or after such date.

(e) AVAILABILITY OF RECIPIENT IDENTIFYING INFORMATION FROM

THE INSPECTOR GENERAL.—

(1) IN GENERAL.—Section 1129 of the Social Security Act

(added by subsection (b) of this section) is amended by adding

at the end the following:

‘‘(l) As soon as the Inspector General, Department of Health

and Human Services, has reason to believe that fraud was involved

in the application of an individual for monthly insurance benefits

under title II or for benefits under title XVI, the Inspector General

shall make available to the Secretary information identifying the

individual, 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 in a particular investigation or redetermining the eligibility of the individual 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 subsection (d)(2) of

this section, is amended by adding at the end the following:

‘‘(7)(A) The Secretary shall request the Immigration and Naturalization Service or the Centers for Disease Control to provide

the Secretary with whatever medical information, identification

information, and employment history either such entity has with

respect to any alien who has applied for benefits under title XVI

to the extent that the information is relevant to any determination

relating to eligibility for such benefits under title XVI.

‘‘(B) Subparagraph (A) shall not be construed to prevent the

Secretary from adjudicating the case before receiving such information.’’.

(2) EFFECTIVE DATE.—The amendment made by paragraph

(1) shall take effect on October 1, 1994.
H. R. 4277—53

(g) ANNUAL REPORTS ON REVIEWS OF OASDI AND SSI CASES.—

The Secretary of Health and Human Services 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 Secretary has exercised his authority to

review cases of entitlement to monthly insurance benefits under

title II of the Social Security Act and supplemental security income

cases under title XVI of such Act, and the extent to which the

cases reviewed were those that involved a high likelihood or probability of fraud.

SEC. 207. DISABILITY REVIEW REQUIRED FOR SSI RECIPIENTS WHO

ARE 18 YEARS OF AGE.

(a) DISABILITY REVIEW REQUIREMENT.—

(1) IN GENERAL.—The applicable State agency or the Secretary of Health and Human Services (as may be appropriate)

shall redetermine the eligibility of a qualified individual for

supplemental security income benefits under title XVI of the

Social Security Act by reason of disability, by applying the

criteria used in determining eligibility for such benefits of

applicants who have attained 18 years of age.

(2) WHEN CONDUCTED.—The redetermination required by

paragraph (1) with respect to a qualified individual shall be

conducted during the 1-year period that begins on the date

the qualified individual attains 18 years of age.

(3) MINIMUM NUMBER OF REVIEWS.—The Secretary shall

conduct redeterminations under paragraph (1) with respect to

not less than 1⁄3 of qualified individuals in each of fiscal years

1996, 1997, and 1998.

(4) QUALIFIED INDIVIDUAL DEFINED.—As used in this paragraph, the term ‘‘qualified individual’’ means a recipient of

supplemental security income benefits under title XVI of the

Social Security Act by reason of disability who attains 18 years

of age in or after the 9th month after the month in which

this Act is enacted.

(5) SUBSTITUTE FOR A CONTINUING DISABILITY REVIEW.— A redetermination under paragraph (1) of this subsection shall

be considered a substitute for a review required under section

1614(a)(3)(G) of the Social Security Act. (6) SUNSET.—Paragraph (1) shall have no force or effect

after October 1, 1998.

(b) REPORT TO THE CONGRESS.—Not later than October 1, 1998,

the Secretary of Health and Human Services shall 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

activities conducted under subsection (a).

SEC. 208. CONTINUING DISABILITY REVIEWS.

(a) TEMPORARY ANNUAL MINIMUM NUMBER OF REVIEWS.—During each year of the 3-year period that begins on October 1, 1995,

the Secretary of Health and Human Services shall apply section

221(i) of the Social Security Act in making disability determinations

under title XVI of such Act with respect to at least 100,000 recipients of supplemental security income benefits under such title.

(b) REPORT TO THE CONGRESS.—Not later than October 1, 1998,

the Secretary of Health and Human Services shall submit to the

Committee on Ways and Means of the House of Representatives
H. R. 4277—54

and the Committee on Finance of the Senate a report on the

activities conducted under subsection (a).

SEC. 209. EXEMPTION FROM ADJUSTMENT IN PASS-ALONG REQUIREMENTS.

(a) IN GENERAL.—Section 1618(b) of the Social Security Act

(42 U.S.C. 1382g(b)) is amended—

(1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and

(2) by adding at the end the following:

‘‘(2) For purposes of determining under paragraph (1) whether

a State’s expenditures for supplementary payments in the 12-month

period beginning on the effective date of any increase in the level

of supplemental security income benefits are not less than the

State’s expenditures for such payments in the preceding 12-month

period, the Secretary, in computing the State’s expenditures, shall

disregard, pursuant to a 1-time election of the State, all expenditures by the State for retroactive supplementary payments that

are required to be made in connection with the retroactive supplemental security income benefits referred to in section 5041 of the

Omnibus Budget Reconciliation Act of 1990.’’.

(b) APPLICABILITY.—The amendments made by subsection (a)

shall apply with respect to increases in the level of supplemental

security income benefits under title XVI of the Social Security

Act whether occurring before, on, or after the date of the enactment

of this Act.

TITLE III—MISCELLANEOUS PROGRAM

IMPROVEMENTS

SEC. 301. 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 Treasury

to either of the Trust Funds of any such interest or proceeds
H. R. 4277—55

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 OldAge 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. 302. GAO STUDY REGARDING TELEPHONE ACCESS TO LOCAL

OFFICES OF THE SOCIAL SECURITY ADMINISTRATION.

(a) STUDY.—The Comptroller General of the United States shall

conduct a study of telephone access to local offices of the Social

Security Administration. (b) MATTERS TO BE STUDIED.—In conducting the study under this section, the Comptroller General shall make an independent

assessment of the Social Security Administration’s use of innovative

technology (including attendant call and voice mail) to increase

public telephone access to local offices of the Administration. Such

study shall include— (1) an assessment of the aggregate impact of such tech- nology on public access to the local offices, and (2) a separate assessment of the impact of such technology on public access to those local offices to which access was

restricted on October 1, 1989.

(c) REPORT.—Not later than January 31, 1996, the Comptroller General shall submit a report on the results of the study conducted

pursuant to this section to the Committee on Ways and Means

of the House of Representatives and the Committee on Finance

of the Senate.

SEC. 303. 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 any calendar year commencing on or after January
H. R. 4277—56

1, 1995, ending on or before December 31, 1999, and the

adjusted amount determined under section 218(c)(8)(B) for any

calendar year commencing on or after January 1, 2000, with

respect to service performed during such calendar 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 any calendar year commencing on or after

January 1, 1995, ending on or before December 31, 1999, and

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

the Social Security Act for any calendar year commencing on

or after January 1, 2000, with respect to service performed

during such calendar 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 any calendar year commencing on or after January 1, 1995, ending on or before December

31, 1999, and the adjusted amount determined under section

218(c)(8)(B) for any calendar year commencing on or after January 1, 2000, with respect to service performed during such

calendar 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 any calendar year commencing on or after January

1, 1995, ending on or before December 31, 1999, and the

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

Social Security Act for any calendar year commencing on or

after January 1, 2000, with respect to service performed during

such calendar 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 any calendar year commencing

on or after January 1, 1995, ending on or before December

31, 1999, and the adjusted amount determined under subparagraph (B) for any calendar year commencing on or after January

1, 2000, with respect to service performed during such calendar

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:
H. R. 4277—57

‘‘(B) For each year after 1999, 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, 1997 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. 304. 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 subpara- graphs (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) CONFORMING AMENDMENT.—Section 1140(a)(2) of such Act

(42 U.S.C. 1320b–10(a)(2)) is amended by striking ‘‘205(c)(2)(E)’’

and inserting ‘‘205(c)(2)(F)’’.
H. R. 4277—58

(c) EFFECTIVE DATE.—The amendments made by this section shall take effect on the date of the enactment of this Act.

SEC. 305. AUTHORIZATION FOR ALL STATES TO EXTEND COVERAGE

TO STATE AND LOCAL POLICE OFFICERS AND FIREFIGHTERS 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. 306. 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
H. R. 4277—59

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 (prior to March 31,

1995) or the Commissioner of Social Security (after March 30,

1995) 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. 307. 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 December 1994.

SEC. 308. EXCLUSION OF MILITARY RESERVISTS FROM APPLICATION

OF THE GOVERNMENT PENSION OFFSET AND WINDFALL

ELIMINATION PROVISIONS.

(a) EXCLUSION FROM GOVERNMENT PENSION OFFSET PROVI- SIONS.—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 subpara- graph (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 mat- ter 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 307(a) of
H. R. 4277—60

this Act) and section 215(d)(3) of such Act (as amended by section

307(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 December

1994.

SEC. 309. 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
H. R. 4277—61

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. 310. 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
H. R. 4277—62

(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 December 1995.

SEC. 311. AUTHORIZATION FOR DISCLOSURE OF SOCIAL SECURITY

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.’’.
H. R. 4277—63

(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. 312. MISUSE OF SYMBOLS, EMBLEMS, OR NAMES IN REFERENCE

TO SOCIAL SECURITY ADMINISTRATION OR DEPARTMENT

OF HEALTH AND HUMAN SERVICES.

(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 or of the Department of Health

and Human Services 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 amended by section 304 and 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’’, by striking ‘‘or of the Health

Care Financing Administration’’, and by inserting ‘‘or the Medicare card,’’ after ‘‘205(c)(2)(F)’’.

(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 redesig- nated 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
H. R. 4277—64

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, AND PENALTIES RELATED TO

HEALTH CARE FINANCING ADMINISTRATION DEPOSITED IN THE HI

AND SMI TRUST FUNDS.—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 (A) 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 Survivors

Insurance Trust Fund, and (B) 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 Department

of Health and Human Services, such amounts shall be deposited

into the Federal Hospital Insurance Trust Fund or the Federal

Supplementary Medical Insurance Trust Fund, as appropriate.’’.

(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 may be enforced

through the Office of the Inspector General of the Department

of Health and Human Services.’’.

(k) REPORTS.—
H. R. 4277—65

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

Services and the Commissioner of Social Security shall each

submit to the Committee on Ways and Means of the House

of Representatives and the Committee on Finance of the Senate

3 reports on the operation of section 1140 of the Social Security

Act with respect to the Social Security Administration or the

Department of Health and Human Services during the period

covered by the report, which shall specify—

(A) the number of complaints of violations of such

section received by the Social Security Administration or

the Department of Health and Human Services during

the period,

(B) the number of cases in which the Social Security

Administration or the Department, during the period, sent

a notice of violation of such section requesting that an

individual cease activities in violation of such section,

(C) the number of cases in which the Social Security

Administration or the Department formally proposed a civil

money penalty in a demand letter during the period,

(D) the total amount of civil money penalties assessed

by the Social Security Administration or the Department

under this section during the period,

(E) the number of requests for hearings filed during

the period by the Social Security Administration or the

Department pursuant to sections 1140(c)(1) and 1128A(c)(2)

of the Social Security Act,

(F) the disposition during the period of hearings filed

pursuant to sections 1140(c)(1) and 1128A(c)(2) of the Social

Security Act, and

(G) the total amount of civil money penalties collected

under this section and deposited into the Federal OldAge and Survivors Insurance Trust Fund or the Health

Insurance and Supplementary Medical Insurance Trust

Funds, as applicable, during the period.

(2) WHEN DUE.—The reports required by paragraph (1)

shall be submitted not later than December 1, 1995, not later

than December 1, 1997, and not later than December 1, 1999,

respectively.

(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:

‘‘§ 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,
H. R. 4277—66

‘‘(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.
H. R. 4277—67

‘‘(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.—

(1) IN GENERAL.—Except as provided in paragraph (2), the

amendments made by this section shall apply with respect

to violations occurring after March 31, 1995.

(2) PROHIBITION OF MISUSE OF DEPARTMENT OF THE TREASURY NAMES, SYMBOLS, ETC.—Subsection (l)(3) shall take effect

on the date of the enactment of this Act, and the amendments

made by paragraphs (1) and (2) of subsection (l) shall apply

with respect to violations occurring after such date.

SEC. 313. 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. 314. 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.
H. R. 4277—68

SEC. 315. 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. 316. 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.’’.
H. R. 4277—69

(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. 317. 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’’.
H. R. 4277—70

SEC. 318. 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. 319. 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.’’
H. R. 4277—71

(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 per- formed 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:
H. R. 4277—72

‘‘(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. 320. 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.

(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. 321. 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’’.
H. R. 4277—73

(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 lefthand 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 insert- ing ‘‘; 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’’.
H. R. 4277—74

(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
H. R. 4277—75

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.—
H. R. 4277—76

(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 WAGEBASED 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
H. R. 4277—77

‘‘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
H. R. 4277—78

(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 REPRESENTA- TIVE BASED ON AMOUNT OF PAST-DUE SUPPLEMENTAL SECU- RITY 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 determined

before any applicable reduction under section 1127(a).’’.
H. R. 4277—79

(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 pastdue 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 subsection shall take effect as if included in the provisions of

the Omnibus Budget Reconciliation Act of 1990 to which such

amendment relates, except that the amendments made by paragraph (3)(B) shall apply with respect to favorable judgments

made after 180 days after the date of the enactment of this

Act.

(g) ELIMINATION OF ROUNDING DISTORTION IN THE CALCULATION

OF THE OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE CONTRIBU- TION 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
H. R. 4277—80

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 paragraph (1) shall be

effective with respect to the determination of the contribution and benefit base for years after 1994.

(B) The amendment made by paragraph (2) shall be

effective with respect to the determination of the exempt

amounts applicable to any taxable year ending after 1994.
H. R. 4277—81

(h) TECHNICAL AMENDMENTS TO TITLE XVI.—(1) Section 1631

of the Social Security Act (42 U.S.C. 1383) is amended—

(A) in the 1st subsection (n), by striking ‘‘subsection’’ and

inserting ‘‘title’’; and

(B) by redesignating the 2nd subsection (n) as subsection (o).

(2) Section 1613(a) of such Act (42 U.S.C. 1382b(a)) is

amended—

(A) by striking ‘‘and’’ at the end of paragraph (9);

(B) by striking the period at the end of the 1st paragraph

(10) and inserting ‘‘; and’’; and

(C) by redesignating the 2nd paragraph (10) as paragraph (11).

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

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

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.