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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4277 Engrossed Amendment Senate (EAS)]

103d CONGRESS

  2d Session

                               H. R. 4277

_______________________________________________________________________

                               AMENDMENT
  
  
  
  
  
  
  
  
  
  

                  In the Senate of the United States,

                                May 23 (legislative day, May 16), 1994.
      Resolved, That the bill from the House of Representatives (H.R. 
4277) entitled ``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'', do pass with the 
following

                               AMENDMENT:

            Strike out all after the enacting clause and insert:

SECTION 1. SHORT TITLE; AMENDMENT OF SOCIAL SECURITY ACT; TABLE OF 
              CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Social Security 
Administration Independence Act of 1994''.
    (b) Amendment of Social Security Act.--Except as otherwise 
expressly provided, whenever in this Act an amendment is expressed in 
terms of an amendment to or repeal of, a section or other provision, 
the reference shall be considered to be made to that section or other 
provision of the Social Security Act.
    (c) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; amendment of Social Security Act; table of 
                            contents.

            TITLE I--ESTABLISHMENT OF NEW INDEPENDENT AGENCY

Sec. 101. Establishment of Social Security Administration as a 
                            separate, independent agency.
Sec. 102. Commissioner and Deputy Commissioner of Social Security.
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. Transitional rules.
Sec. 107. Effective dates.

                    TITLE II--CONFORMING AMENDMENTS

Sec. 201. Amendments to titles II and XVI of the Social Security Act.
Sec. 202. Other amendments.
Sec. 203. Rules of construction.
Sec. 204. Effective dates.

        TITLE III--SOCIAL SECURITY DISABILITY AND REHABILITATION

Sec. 301. Short title.
Sec. 302. Reform of monthly insurance benefits based on disability 
                            involving substance abuse.
Sec. 303. Priority of treatment.
Sec. 304. Establishment of referral monitoring agencies required in all 
                            States.
Sec. 305. Proceeds from certain criminal activities constitute 
                            substantial gainful employment.
Sec. 306. Consistent penalty provisions for SSDI and SSI programs.

            TITLE I--ESTABLISHMENT OF NEW INDEPENDENT AGENCY

SEC. 101. ESTABLISHMENT OF SOCIAL SECURITY ADMINISTRATION AS A 
              SEPARATE, INDEPENDENT AGENCY.

    Section 701 (42 U.S.C. 901) is amended to read as follows:

                    ``social security administration

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

SEC. 102. COMMISSIONER AND DEPUTY COMMISSIONER OF SOCIAL SECURITY.

    Section 702 (42 U.S.C. 902) is amended to read as follows:

                 ``commissioner and deputy commissioner

                   ``Commissioner of Social Security

    ``Sec. 702. (a)(1) There shall be in the Administration a 
Commissioner of Social Security (hereafter in this title referred to as 
the `Commissioner') who shall be appointed by the President, 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 4 years 
coincident with the term of the President, or until the appointment of 
a qualified successor.
    ``(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 (hereafter 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 shall be available to the public.

                ``Deputy Commissioner of Social Security

    ``(b)(1) There shall be in the Administration a Deputy Commissioner 
of Social Security (hereafter in this title referred to as the `Deputy 
Commissioner') who shall be appointed by the President, with the advice 
and consent of the Senate.
    ``(2) The Deputy Commissioner shall be appointed for a term of 4 
years coincident with the term of the Commissioner, or until the 
appointment of a qualified successor.
    ``(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.''.

SEC. 103. SOCIAL SECURITY ADVISORY BOARD.

    Section 703 (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 (hereinafter referred to as the `Board').

                        ``Functions of the Board

    ``(b) 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 
        of the old-age, survivors, and disability insurance program, 
        both in the short-term and the long-term;
            ``(4) making recommendations to the President of candidates 
        to consider in selecting nominees for the position of 
        Commissioner and Deputy Commissioner;
            ``(5) reviewing and assessing the quality of service that 
        the Administration provides to the public;
            ``(6) reviewing and making recommendations with respect to 
        policies and regulations regarding the old-age, survivors, and 
        disability insurance program and the supplemental security 
        income program;
            ``(7) increasing public understanding of the social 
        security system;
            ``(8) in consultation with the Commissioner, reviewing the 
        development and implementation of a long-range research and 
        program evaluation plan for the Administration;
            ``(9) reviewing and assessing any major studies of social 
        security as may come to the attention of the Board; and
            ``(10) conducting such other reviews and assessments that 
        the Board determines to be appropriate.

                ``Structure and Membership of the Board

    ``(c) The Board shall be composed of 7 members who shall be 
appointed as follows:
            ``(1) 3 members shall be appointed by the President, with 
        the advice and consent of the Senate. Not more than 2 of such 
        members shall be from the same political party.
            ``(2) 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.
            ``(3) 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.

                         ``Terms of Appointment

    ``(d) Each member of the Board shall serve for a term of 6 years, 
except that--
            ``(1) a member appointed to fill a vacancy occurring prior 
        to the expiration of the term for which a predecessor was 
        appointed, shall be appointed for the remainder of such term; 
        and
            ``(2) the terms of service of the members initially 
        appointed under this section shall 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 expire as designated by the President pro tempore 
                of the Senate at the time of nomination, 1 each at the 
                end of--
                            ``(i) 4 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) 3 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.

                             ``Compensation

    ``(f) Members of the Board shall be compensated as follows:
            ``(1) Members shall be paid at a rate equal to 25 percent 
        of the rate for level III of the Executive Schedule.
            ``(2) For days when the Board or any authorized 
        subcommittee of the Board meets, members who attend meetings on 
        such days (including travel time) shall receive additional 
        compensation in an amount equal to the daily equivalent of the 
        rate for level III of the Executive Schedule.
            ``(3) 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.
            ``(4) Service on the Board shall not be treated as Federal 
        service or employment for purposes of receiving any benefits 
        under chapters 83, 84, and 87 of title 5, United States Code.
            ``(5) A member of the Board may elect coverage of a health 
        benefits plan under chapter 89 of title 5, United States Code. 
        Such a member electing coverage shall have the applicable 
        employee contributions under section 8906 of such title 
        withheld from pay for service as a member of the Board. The 
        Administration shall pay the applicable Government 
        contributions under such section 8906 for such member. The 
        Office of Personnel Management shall promulgate regulations to 
        apply the provisions of chapter 89 of such title to Board 
        members electing coverage as provided under this paragraph.

                               ``Meetings

    ``(g) The Board shall meet not less than 6 times each year to 
consider a specific agenda of issues, as determined by the Chairman in 
consultation with the other members of the Board.

                    ``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)(1) The Board shall, without regard to title 5, United States 
Code, appoint a Staff Director who shall be paid at a rate equivalent 
to a rate for the Senior Executive Service.
    ``(2) The Board is authorized, without regard to title 5, United 
States Code, to appoint and fix the compensation of such additional 
personnel as the Board determines to be necessary to carry out the 
functions of the Board.
    ``(3) In fixing the compensation of additional personnel under 
paragraph (2), the Board shall not authorize that any individual 
appointed under such paragraph be compensated at a rate that is greater 
than the rate of compensation of the Staff Director described in 
paragraph (1).

                    ``Authorization of Appropriation

    ``(j) There are authorized to be made available for expenditure, 
out of the Federal Disability Insurance Trust Fund, the Federal Old Age 
and Survivors Insurance Trust Fund, and the general fund in the 
Treasury, such sums as the Congress may deem appropriate to carry out 
the purposes of this section.''.

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

    Section 704 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. Except as 
otherwise provided in any other provision of law, such officers and 
employees shall be appointed, and their compensation shall be fixed, in 
accordance with title 5, United States Code.
    ``(2) The 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 
Administration Independence 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)(1). 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) 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.
    ``(2) Appropriations for administrative expenses of the 
Administration are authorized to be provided on a biennial basis.
    ``(3) Funds appropriated for the Administration to be available on 
a contingency basis shall be apportioned upon the occurrence of the 
stipulated contingency, as determined by the Commissioner and reported 
to the Congress.

                        ``Employment Restriction

    ``(c) The number of positions in the Administration which may be 
excepted from the competitive service, on a temporary or permanent 
basis, because of the confidential or policy-determining character of 
such positions, may not exceed at any time the equivalent of 10 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.''.

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

    (a) Functions.--There are transferred to the Social Security 
Administration all functions carried out by the Secretary of Health and 
Human Services with respect to the programs and activities the 
administration of which is vested in the Social Security Administration 
by reason of this 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).
    (b) Personnel, Assets, Etc.--(1) There are transferred from the 
Department of Health and Human Services to the Social Security 
Administration, for appropriate allocation by the 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 transferred pursuant to this subsection shall 
be used only for the purposes for which the funds were originally 
authorized and appropriated.
    (3) Any individual who is an employee of the Department and who was 
not employed on the date of the enactment of this title, in connection 
with functions transferred by this title to the Administration, but who 
was so employed on the day before the date established pursuant to 
section 107(a), may be transferred from the Department of Health and 
Human Services to the Social Security Administration by the 
Commissioner under subparagraph (A) of paragraph (1), after 
consultation with the Secretary of Health and Human Services, if the 
Commissioner determines such transfer to be appropriate.
    (4) Any individual who is an employee of the Department and who was 
employed on the date of the enactment of this title, solely in 
connection with functions transferred by this title to the 
Administration, and who was so employed on the day before the date 
established pursuant to section 107(a), shall be transferred from the 
Department of Health and Human Services to the Social Security 
Administration.
    (c) Abolishment of Office of Commissioner in the Department of 
Health and Human Services.--Effective upon the appointment of a 
Commissioner of Social Security pursuant to section 702 of the Social 
Security Act (as amended by this title)--
            (1) the position of Commissioner of Social Security in the 
        Department of Health and Human Services is abolished; and
            (2) section 5315 of title 5, United States Code, is amended 
        by striking the following:
            ``Commissioner of Social Security, Department of Health and 
        Human Services.''.

SEC. 106. TRANSITIONAL RULES.

    (a) Transition Director.--(1) Within 30 days after the date of the 
enactment of this Act, a transition director shall be appointed by the 
President, who shall be selected on the basis of experience and 
knowledge of the operation of the Government.
    (2) The transition director shall conduct activities necessary to 
ensure the transition of the Social Security Administration to the 
status of an independent agency in the executive branch of the 
Government. In conducting such activities before the appointment of the 
Commissioner of Social Security, the transition director shall consult 
regularly with the Director of the Office of Management and Budget. 
Upon such appointment, the transition director shall conduct such 
activities at the direction of the Commissioner of Social Security.
    (3) The transition director shall be compensated at the rate 
provided for level IV of the Executive Schedule.
    (4) Expenditures to carry out the purposes of this subsection shall 
be made out of the Federal Old Age and Survivors Insurance Trust Fund 
and the Federal Disability Insurance Trust Fund.
    (b) Interim Authority for Appointment and Compensation.--
            (1) Appointment of commissioner.--Within 60 days of the 
        date of the enactment of this title, the Commissioner of Social 
        Security shall be appointed by the President pursuant to 
        section 702 of the Social Security Act (as amended by this 
        title). If the appointment is made pursuant to such section 
        before the date established pursuant to section 107(a), the 
        Commissioner of Social Security shall also perform the duties 
        assigned to the Commissioner of Social Security in the 
        Department of Health and Human Services.
            (2) Other appointments.--At any time on or after the date 
        of the enactment of this title any of the other officers 
        provided for in sections 702 and 703 of the Social Security Act 
        (as amended by this title) may be nominated and appointed, as 
        provided in such sections.
            (3) Compensation.--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 appointed pursuant to this subsection 
        until such time as funds for that purpose are otherwise 
        available.
    (c) 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 the date 
        established pursuant to section 107(a),
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.
    (d) 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 the date established pursuant to section 107(a), 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.
    (e) Continuation of Suits.--Except as provided in this subsection--
            (1) the provisions of this title shall not affect suits 
        commenced before the date established pursuant to section 
        107(a); and
            (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. Causes of action, suits, 
actions, or other proceedings may be asserted by or against the United 
States and the Social Security Administration, or such official of such 
Administration as may be appropriate, and, in any litigation pending 
immediately before the date established pursuant to section 107(a), the 
court may at any time, on the court's own motion or that of a party, 
enter an order which will give effect to the provisions of this 
subsection (including, where appropriate, an order for substitution of 
parties).
    (f) Continuation of Penalties.--This title shall not have the 
effect of releasing or extinguishing any criminal prosecution, penalty, 
forfeiture, or liability incurred as a result of any function which (by 
reason of this title, the amendments made thereby, and regulations 
prescribed thereunder) is vested in the Commissioner of Social 
Security.
    (g) 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) 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 the date established pursuant to section 
107(a). 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.
    (h) 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.
    (i) Report.--Within 120 days of the date of the enactment of this 
title, the transition director and the Commissioner of Social Security 
shall report to the Congress on the status of the transition to an 
independent Social Security Administration, and on any significant 
internal restructuring or management improvements that are proposed to 
be undertaken.

SEC. 107. EFFECTIVE DATES.

    (a) In General.--Except as provided in subsection (b), this title, 
and the amendments made by such title shall take effect on the earlier 
of--
            (1) the date which is 180 days after the date of the 
        enactment of this Act, or
            (2) a date designated by the President.
    (b) Transitional Rules.--Section 106 shall take effect on the date 
of the enactment of this title.

                    TITLE II--CONFORMING AMENDMENTS

SEC. 201. AMENDMENTS TO TITLES II AND XVI OF THE SOCIAL SECURITY ACT.

    (a) In General.--Title II (42 U.S.C. 401 et seq.) (other than 
section 201, section 218(d), section 231(c), section 226, and section 
226A) and title XVI (42 U.S.C. 1382 et seq.) (other than sections 
1614(f)(2)(B) and 1616(e)(3)) are each amended--
            (1) by striking, wherever it appears therein, ``Secretary 
        of Health and Human Services'' and inserting ``Commissioner of 
        Social Security'';
            (2) by striking, wherever it appears therein, ``Department 
        of Health and Human Services'' and inserting ``Social Security 
        Administration'';
            (3) by striking, wherever it appears therein, 
        ``Department'' (but only if it is not immediately succeeded by 
        the words ``of Health and Human Services'', and only if it is 
        used in reference to the Department of Health and Human 
        Services) and inserting ``Administration'';
            (4) by striking, wherever it appears therein, each of the 
        following words (but, in the case of any such word only if such 
        word refers to the Secretary of Health and Human Services): 
        ``Secretary'', ``Secretary's'', ``his'', ``him'', ``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''; and
            (5) by striking, wherever it appears therein, ``Internal 
        Revenue Code of 1954'' and inserting ``Internal Revenue Code of 
        1986''.
    (b) Amendments to Section 201.--(1)(A) Sections 201(a)(3), 
201(a)(4), 201(b)(1), and 201(b)(2) (42 U.S.C. 401(a)(3), 401(a)(4), 
401(b)(1), and 401(b)(2), respectively) are each amended by striking 
``Secretary of Health and Human Services'' each place it appears and 
inserting ``Commissioner of Social Security''; and
    (B) Sections 201(a)(3) and 201(b)(1) (42 U.S.C. 401(a)(3) and 
401(b)(1), respectively) are each amended by striking ``such 
Secretary'' and inserting ``such Commissioner''.
    (2) Section 201(c) (42 U.S.C. 401(c)) is amended--
            (A) in the first sentence, by striking ``shall be composed 
        of'' and all that follows down through ``ex officio'' and 
        inserting the following: ``shall be composed of the 
        Commissioner of Social Security, the Secretary of the Treasury, 
        and the Secretary of Health and Human Services, all ex 
        officio''; and
            (B) in the fifth sentence, by striking ``The Commissioner 
        of Social Security'' and inserting ``The Deputy Commissioner of 
        Social Security''.
    (3) Section 201(g)(1)(A) (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 him, 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'' and 
        inserting ``by the Social Security Administration, the 
        Department of Health and Human Services, and the Department of 
        the Treasury'';
            (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 the 
        Secretary of Health and Human Services'', and by striking ``the 
        Department of Health and Human Services'' and inserting ``the 
        Social Security Administration and the Department of Health and 
        Human Services''; and
            (C) 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 and title XVI 
        for which the Commissioner of Social Security is responsible, 
        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) Section 201(g)(1) (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 and title XVI 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 in the Treasury, (II) the portion of such costs which 
        should have been borne by the Federal Old-Age and Survivors 
        Insurance Trust Fund, and (III) the portion of such costs which 
        should have been borne by the Federal Disability 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 administration of title XVIII which should have 
        been borne by the general fund in 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,
except that the determination of the amounts to be borne by the general 
fund in the Treasury with respect to expenditures incurred in carrying 
out such functions specified in section 232 shall be made pursuant to 
the applicable method prescribed under paragraph (4) of this 
subsection.
    ``(C) After the determinations under subparagraph (B) have been 
made for any fiscal year, the Commissioner of Social Security and the 
Secretary of Health and Human Services shall jointly certify to the 
Managing Trustee the amounts, if any, which should be transferred from 
one to any of the other of 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 in the Treasury, in order to ensure 
that each of the Trust Funds and the general fund in the Treasury have 
borne their proper share of the costs, incurred during such fiscal 
year, for (i) the part of the administration of this title and title 
XVI for which the Commissioner of Social Security is responsible, (ii) 
the part of the administration of this title and title XVIII for which 
the Secretary of Health and Human Services is responsible, and (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.''.
    (5) Section 201(g)(2) (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) (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 Administration 
Independence Act of 1994 for determining the costs which should be 
borne by the general fund in the Treasury 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 paragraph (1)(A)). If at any time or times thereafter the 
Boards of Trustees of such Trust Funds consider such action advisable, 
such Boards may modify the method of determining such costs.''.
    (7) Section 201(i)(1) (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 (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) (42 U.S.C. 401(l)(3)(B)(iii)(II)) 
is amended by striking ``Secretary'' and inserting ``Commissioner of 
Social Security''.
    (10) Section 201(m)(3) (42 U.S.C. 401(m)(3)) is amended by striking 
``Secretary of Health and Human Services'' and inserting ``Commissioner 
of Social Security''.
    (11) Section 201 (42 U.S.C. 401) is amended by striking ``Internal 
Revenue Code of 1954'' each place it appears and inserting ``Internal 
Revenue Code of 1986''.
    (c) Amendments to Section 218.--Section 218(d) (42 U.S.C. 418(d)) 
is amended by striking ``Secretary'' each place it appears in 
paragraphs (3) and (7) and inserting ``Commissioner of Social 
Security''.
    (d) Amendment to Section 231.--Section 231(c) (42 U.S.C. 431(c)) is 
amended by striking ``Secretary determines'' and inserting 
``Commissioner of Social Security and the Secretary jointly 
determine''.

SEC. 202. OTHER AMENDMENTS.

    (a) Amendments to Title VII.--(1) Title VII (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.''.
    (2) Section 706 (42 U.S.C. 907) is amended--
            (A) in subsection (a), by striking ``Advisory Council on 
        Social Security'' and all that follows through ``disability 
        insurance program and'' and inserting ``Advisory Council on 
        Hospital and Supplementary Medical Insurance for the purpose of 
        reviewing the status of the Federal Hospital Insurance Trust 
        Fund and the Federal Supplementary Medical Insurance Trust Fund 
        in relation to the long-term commitments of'';
            (B) in subsection (d), by striking paragraph (1) and by 
        redesignating paragraphs (2) and (3) as paragraphs (1) and (2), 
        respectively, and
            (C) by striking the section heading and inserting the 
        following:

 ``advisory council on hospital and supplementary medical insurance''.

    (3) Paragraph (2) of section 709(b) (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)''.
    (4) Sections 709 and 710 (42 U.S.C. 910 and 911) are amended by 
striking ``Internal Revenue Code of 1954'' each place it appears and 
inserting ``Internal Revenue Code of 1986''.
    (b) Amendments to Title XI.--(1) Section 1101(a) (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) (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) (42 U.S.C. 1306(b)) is amended--
            (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) (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 1107(b) (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''.
    (6) Section 1110 (42 U.S.C. 1310) is amended--
            (A) 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'';
            (B) in subsection (b)--
                    (i) by striking ``Secretary'' each place it appears 
                and inserting ``Commissioner'', and
                    (ii) by striking ``the Secretary's'' each place it 
                appears and inserting ``the Commissioner's''; and
            (C) by striking ``he'', ``his'', ``him'', and ``himself'' 
        each place they appear (except in subsection (b)(2)(A)) and 
        inserting ``the Commissioner'', ``the Commissioner's'', ``the 
        Commissioner'', and ``himself or herself'', respectively.
    (7) Subsections (b) and (c) of section 1127 (42 U.S.C. 1320a-6) are 
each amended by striking ``Secretary'' and inserting ``Commissioner of 
Social Security''.
    (8) Section 1128(f) (42 U.S.C. 1320a-7(f)) is amended 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''.
    (9) Section 1131 (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) by striking ``he'' in the matter in subsection (a) 
        following paragraph (3) (as so redesignated) and inserting 
        ``the Commissioner of Social Security''.
    (10) Section 1155 (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.''.
    (11) Sections 1101, 1106, 1107, and 1137 (42 U.S.C. 1301, 1306, 
1307, and 1320b-7, respectively) are amended by striking ``Internal 
Revenue Code of 1954'' each place it appears and inserting ``Internal 
Revenue Code of 1986''.
    (c) Amendments to Title XVIII.--(1) Subsections (a) and (f) of 
section 1817 (42 U.S.C. 1395i) are amended by striking ``Secretary of 
Health and Human Services'' each place it appears and inserting 
``Commissioner of Social Security''.
    (2) Section 1840(a) (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 1872 (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''.
    (4) Section 1869(b)(1) (42 U.S.C. 1395ff(b)(1)) and the last 
sentence of section 1876(c)(5)(B) (42 U.S.C. 1395mm(c)(5)(B)) are 
amended 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''.
    (5) Sections 1817, 1862, and 1886 (42 U.S.C. 1395i, 1395y, and 
1395ww, respectively) are amended by striking ``Internal Revenue Code 
of 1954'' each place it appears and inserting ``Internal Revenue Code 
of 1986''.
    (d) Amendments to Title XIX.--(1) Section 1905(q)(2) (42 U.S.C. 
1396d(q)(2)) is amended by striking ``Secretary'' and inserting 
``Commissioner of Social Security''.
    (2) Section 1910(b)(2) (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 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''.
    (e) Amendment to Title XX.--Section 2002(a)(2)(B) (42 U.S.C. 
1397a(a)(2)(B)) is amended by striking ``Internal Revenue Code of 
1954'' and inserting ``Internal Revenue Code of 1986''.
    (f) Amendments to Title 5, United States Code.--Title 5, United 
States Code, is amended--
            (1) by adding at the end of section 5311 the following new 
        item:
            ``Commissioner, Social Security Administration.'';
            (2) by adding at the end of section 5313 the following new 
        item:
            ``Deputy Commissioner, Social Security Administration.''; 
        and
            (3) by striking ``Secretary of Health Education, and 
        Welfare'' each place it appears in section 8141 and inserting 
        ``Commissioner of Social Security''.
    (g) Amendments to Food Stamp Act of 1977.--(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''.
    (h) 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''.
    (i) Amendments to Internal Revenue Code of 1986.--(1) Subsections 
(c)(1), (c)(2)(E), (g)(1), (g)(2)(A), and (g)(2)(B) of section 1402 of 
the Internal Revenue Code of 1986 (26 U.S.C. 1402) 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 (26 U.S.C. 3121(b)(10)(B)) 
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 (26 U.S.C. 3127) 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 (26 U.S.C. 6050F(c)(1)(A)) 
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 (26 U.S.C. 
6057) 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 (26 U.S.C. 6103(l)(5)) is 
amended--
            (A) by striking ``Department of Health and Human Services'' 
        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 (26 
U.S.C. 6402) 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 (26 U.S.C. 6511(d)(5)) is 
amended by striking ``Secretary of Health and Human Services'' and 
inserting ``Commissioner of Social Security''.
    (j) Amendments to Title 31, United States Code.--Section 3720A(f) 
of title 31, United States Code, is amended by striking ``Secretary of 
Health and Human Services'' each place it appears in 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.--The Inspector 
General Act of 1978 (5 U.S.C. App.) is amended--
            (1) in section 9(a)(1), by striking ``and'' at the end of 
        subparagraph (U), and by adding at the end the following new 
        subparagraph:
                    ``(V) of the Social Security Administration, the 
                functions of the Inspector General of the Department of 
                Health and Human Services relating to the 
                administration of the old-age, survivors, and 
                disability insurance program under title II of the 
                Social Security Act and of the supplemental security 
                income program under title XVI of such Act; and'';
            (2) in section 11(1), by striking ``or'' after 
        ``Commission'' and inserting a semicolon, and by inserting 
        after ``Board;'' the following: ``or the Commissioner of Social 
        Security;''; and
            (3) in section 11(2), by striking ``or'' after 
        ``Information Agency,'', and by inserting after ``Veterans' 
        Administration'' the following: ``, or the Social Security 
        Administration;''.

SEC. 203. RULES OF CONSTRUCTION.

    (a) References to the Department of Health and Human Services.--
Whenever any reference is made in any provision of law (other than this 
Act or a provision of law amended by this Act), regulation, rule, 
record, 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, such reference shall be considered a reference to the Social 
Security Administration.
    (b) References to the Secretary of Health and Human Services.--
Whenever any reference is made in any provision of law (other than this 
Act or a provision of law amended by this Act), regulation, rule, 
record, 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, such reference shall be considered a reference to the Commissioner 
of Social Security.
    (c) References to Other Officers and Employees.--Whenever any 
reference is made in any provision of law (other than this Act or a 
provision of law amended by this Act), regulation, rule, record, or 
document to any other officer or employee of the Department of Health 
and Human Services with respect to such officer 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, such reference shall be considered 
a reference to the appropriate officer or employee of the Social 
Security Administration.

SEC. 204. EFFECTIVE DATES.

    (a) In General.--Except as provided in subsection (b), the 
provisions of this title shall take effect on the date established 
pursuant to section 107(a).
    (b) Exceptions.--Subsections (f)(1), (f)(2), and (l) of section 202 
shall take effect on the date of the enactment of this title.

        TITLE III--SOCIAL SECURITY DISABILITY AND REHABILITATION

SEC. 301. SHORT TITLE.

    This title may be cited as the ``Social Security Disability and 
Rehabilitation Act of 1994''.

SEC. 302. REFORM OF MONTHLY INSURANCE BENEFITS BASED ON DISABILITY 
              INVOLVING SUBSTANCE ABUSE.

    (a) Social Security Disability Insurance.--
            (1) In general.--Section 223 of the Social Security Act (42 
        U.S.C. 423) is amended by adding at the end the following new 
        subsection:

    ``Limitation on Payment of Benefits by Reason of Substance Abuse

    ``(j)(1)(A) Notwithstanding any other provision of this title, no 
individual whose disability is based in whole or in part on a medical 
determination that the individual is a drug addict or alcoholic shall 
be entitled to benefits under this title based on such disability with 
respect to any month, unless such individual--
            ``(i) is undergoing, or on a waiting list for, any medical 
        or psychological treatment that may be appropriate for such 
        individual's condition as a drug addict or alcoholic (as the 
        case may be) and for the stage of such individual's 
        rehabilitation at an institution or facility approved for 
        purposes of this paragraph by the Secretary (so long as access 
        to such treatment is reasonably available, as determined by the 
        Secretary), and
            ``(ii) demonstrates in such manner as the Secretary 
        requires, including at a continuing disability review not later 
        than one year after such determination, that such individual is 
        complying with the terms, conditions, and requirements of such 
        treatment and with the requirements imposed by the Secretary 
        under subparagraph (B).
    ``(B) The Secretary shall provide for the monitoring and testing of 
all individuals who are receiving benefits under this title and who as 
a condition of such benefits are required to be undergoing treatment 
and complying with the terms, conditions, and requirements thereof as 
described in subparagraph (A), in order to assure such compliance and 
to determine the extent to which the imposition of such requirements is 
contributing to the achievement of the purposes of this title. The 
Secretary may retain jurisdiction in the case of a hearing before the 
Secretary under this title to the extent the Secretary determines 
necessary to carry out the preceding sentence. The Secretary shall 
annually submit to the Congress a full and complete report on the 
Secretary's activities under this paragraph.
    ``(C) The representative payee and the referral and monitoring 
agency for any individual described in subparagraph (A) shall report to 
the Secretary any noncompliance with the terms, conditions, and 
requirements of the treatment described in subparagraph (A) and with 
the requirements imposed by the Secretary under subparagraph (B).
    ``(D)(i) If the Secretary finds that an individual is not complying 
with the terms, conditions, and requirements of the treatment described 
in subparagraph (A), or with the requirements imposed by the Secretary 
under subparagraph (B), or both, the Secretary, in lieu of termination, 
may suspend such individual's benefits under this title until 
compliance has been reestablished, including compliance with any 
additional requirements determined to be necessary by the Secretary.
    ``(ii) Any period of suspension under clause (i) shall be taken 
into account in determining any 24-month period described in 
subparagraph (E) and shall not be taken into account in determining the 
36-month period described in such subparagraph.
    ``(E)(i) Except as provided in clause (ii), no individual described 
in subparagraph (A) shall be entitled to benefits under this title for 
any month following the 24-month period beginning with the 
determination of the disability described in such subparagraph.
    ``(ii) If at the end of the 24-month period described in clause 
(i), the individual furnishes evidence in accordance with subsection 
(d)(5) that the individual continues to be under a disability based in 
whole or in part on a medical determination that the individual is a 
drug addict or alcoholic, such individual shall continue to be entitled 
to benefits under this title based on such disability.
    ``(iii) Subject to clause (iv), if such an individual continues to 
be entitled to such benefits for an additional 24-month period 
following a determination under clause (ii), clauses (i) and (ii) shall 
apply with regard to any further entitlement to such benefits following 
the end of such additional period.
    ``(iv) In no event shall such an individual be entitled to benefits 
under this title for more than a total of 36 months, unless upon the 
termination of the 36th month such individual furnishes evidence in 
accordance with subsection (d)(5) that the individual is under a 
disability which is not related in part to a medical determination that 
the individual is a drug addict or alcoholic.
    ``(2)(A) Any benefits under this title payable to any individual 
referred to in paragraph (1), including any benefits payable in a lump 
sum amount, shall be payable only pursuant to a certification of such 
payment to a qualified organization acting as a representative payee of 
such individual pursuant to section 205(j).
    ``(B) For purposes of subparagraph (A) and section 205(j)(4), the 
term `qualified organization'--
            ``(i) shall have the meaning given such term by section 
        205(j)(4)(B), and
            ``(ii) shall mean an agency or instrumentality of a State 
        or a political subdivision of a State.
    ``(3) 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 a disabled individual but 
for the provisions of paragraph (1), shall be payable as though such 
disabled individual were receiving such benefits which are not payable 
under this subsection.''
            (2) Conforming amendments.--
                    (A) Section 205(j)(1) of such Act (42 U.S.C. 
                405(j)(1)) is amended by inserting '', or in the case 
                of any individual referred to in section 223(j)(1)(A)'' 
                after ``thereby''.
                    (B) Section 205(j)(2)(D)(ii)(II) of such Act (42 
                U.S.C. 405(j)(2)(D)(ii)(II)) is amended by striking 
                ``legally incompetent or under the age of 15'' and 
                inserting ``legally incompetent, under the age of 15, 
                or a drug addict or alcoholic referred to in section 
                223(j)(1)(A)''.
    (b) Supplemental Security Income.--Paragraph (3) of section 1611(e) 
of the Social Security Act (42 U.S.C. 1382(e)) is amended to read as 
follows:
    ``(3)(A)(i) No person who is an aged, blind, or disabled individual 
solely by reason of disability (as determined under section 1614(a)(3)) 
shall be an eligible individual or eligible spouse for purposes of this 
title with respect to any month if such individual's disability is 
based in whole or in part on a medical determination that the 
individual is a drug addict or alcoholic, unless such individual--
            ``(I) is undergoing, or on a waiting list for, any medical 
        or psychological treatment that may be appropriate for such 
        individual's condition as a drug addict or alcoholic (as the 
        case may be) and for the stage of such individual's 
        rehabilitation at an institution or facility approved for 
        purposes of this paragraph by the Secretary (so long as access 
        to such treatment is reasonably available, as determined by the 
        Secretary), and
            ``(II) demonstrates in such manner as the Secretary 
        requires, including at a continuing disability review not later 
        than one year after such determination, that such individual is 
        complying with the terms, conditions, and requirements of such 
        treatment and with the requirements imposed by the Secretary 
        under clause (ii).
    ``(ii) The Secretary shall provide for the monitoring and testing 
of all individuals who are receiving benefits under this title and who 
as a condition of such benefits are required to be undergoing treatment 
and complying with the terms, conditions, and requirements thereof as 
described in clause (i), in order to assure such compliance and to 
determine the extent to which the imposition of such requirements is 
contributing to the achievement of the purposes of this title. The 
Secretary may retain jurisdiction in the case of a hearing before the 
Secretary under this title to the extent the Secretary determines 
necessary to carry out the preceding sentence. The Secretary shall 
annually submit to the Congress a full and complete report on the 
Secretary's activities under this subparagraph.
    ``(iii) The representative payee and the referral and monitoring 
agency for any individual described in clause (i) shall report to the 
Secretary any noncompliance with the terms, conditions, and 
requirements of the treatment described in clause (i) and with the 
requirements imposed by the Secretary under clause (ii).
    ``(iv)(I) If the Secretary finds that an individual is not 
complying with the terms, conditions, and requirements of the treatment 
described in clause (i), or with the requirements imposed by the 
Secretary under clause (ii), or both, the Secretary, in lieu of 
termination, may suspend such individual's benefits under this title 
until compliance has been reestablished, including compliance with any 
additional requirements determined to be necessary by the Secretary.
    ``(II) Any period of suspension under subclause (I) shall be taken 
into account in determining any 24-month period described in clause (v) 
and shall not be taken into account in determining the 36-month period 
described in such clause.
    ``(v)(I) Except as provided in subclause (II), no individual 
described in clause (i) shall be entitled to benefits under this title 
for any month following the 24-month period beginning with the 
determination of the disability described in such clause.
    ``(II) If at the end of the 24-month period described in subclause 
(I), the individual furnishes evidence in accordance with section 
223(d)(5) that the individual continues to be under a disability based 
in whole on a medical determination that the individual is a drug 
addict or alcoholic, such individual shall be entitled to benefits 
under this title based on such disability for no more than an 
additional 36 months.
    ``(III) Subject to subclause (IV), if such an individual continues 
to be entitled to such benefits for an additional 24-month period 
following a determination under subclause (II), subclauses (I) and (II) 
shall apply with regard to any further entitlement to such benefits 
following the end of such additional period.
    ``(IV) In no event shall such an individual be entitled to benefits 
under this title for more than a total of 36 months, unless upon the 
termination of the 36th month such individual furnishes evidence in 
accordance with section 223(d)(5) that the individual is under a 
disability which is not related in part to a medical determination that 
the individual is a drug addict or alcoholic.
    ``(B)(i) Any benefits under this title payable to any individual 
referred to in subparagraph (A), including any benefits payable in a 
lump sum amount, shall be payable only pursuant to a certification of 
such payment to a qualified organization acting as a representative 
payee of such individual pursuant to section 1631(a)(2)(A)(ii).
    ``(ii) For purposes of clause (i) and section 1631(a)(2)(D), the 
term `qualified organization'--
            ``(I) shall have the meaning given such term by section 
        1631(a)(2)(D)(ii), and
            ``(II) shall mean an agency or instrumentality of a State 
        or a political subdivision of a State.''
    (c) Effective Dates; Authorizations.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to benefits payable 
        for determinations of disability made 90 or more days after the 
        date of the enactment of this Act.
            (2) Current determinations.--
                    (A) In general.--With respect to any individual 
                described in subparagraph (B), the Secretary of Health 
                and Human Services shall provide during the 3-year 
                period beginning after the date of the enactment of 
                this Act for the application of the amendments made by 
                this section to such individual with the time periods 
                described in such amendments to begin upon such 
                application.
                    (B) Individual described.--An individual is 
                described in this subparagraph if such individual is 
                entitled to benefits under title II or XVI of the 
                Social Security Act based on a disability determined 
                before the date described in paragraph (1) to be based 
                in whole or in part on a medical determination that the 
                individual is a drug addict or alcoholic.
            (3) Authorization of appropriations.--There are authorized 
        to be appropriated such sums as may be necessary to carry out 
        the purposes of the provisions of, and the amendments made by, 
        this section.

SEC. 303. PRIORITY OF TREATMENT.

    The Secretary of Health and Human Services, through the 
Administrator of the Substance Abuse and Mental Health Services 
Administration, shall assure that every individual receiving disability 
benefits under title II or XVI of the Social Security Act based in 
whole or in part on a medical determination that the individual is a 
drug addict or alcoholic be given high priority for treatment through 
entities supported by the various States through any substance abuse 
block grant authorized under law.

SEC. 304. ESTABLISHMENT OF REFERRAL MONITORING AGENCIES REQUIRED IN ALL 
              STATES.

    The Secretary of Health and Human Services shall, within 1 year of 
the date of the enactment of this Act, provide for the establishment of 
referral and monitoring agencies for each State for the purpose of 
carrying out the treatment requirements under sections 223(j)(1) and 
1611(e)(3)(A) of the Social Security Act (42 U.S.C. 423(j)(1) and 
1382(e)(3)(A)).

SEC. 305. PROCEEDS FROM CERTAIN CRIMINAL ACTIVITIES CONSTITUTE 
              SUBSTANTIAL GAINFUL EMPLOYMENT.

    (a) Social Security Disability Insurance.--Section 223(d)(4) of the 
Social Security Act (42 U.S.C. 423(d)(4)) is amended by inserting the 
following after the first sentence: ``If an individual engages in a 
criminal activity to support substance abuse, any proceeds derived from 
such activity shall demonstrate such individual's ability to engage in 
substantial gainful activity.''.
    (b) Supplemental Security Income.--Section 1614(a)(3)(D) of the 
Social Security Act (42 U.S.C. 1382(a)(3)(D)) is amended by inserting 
the following after the first sentence: ``If an individual engages in a 
criminal activity to support substance abuse, any proceeds derived from 
such activity shall demonstrate such individual's ability to engage in 
substantial gainful activity.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to disability determinations conducted on or after the date of 
the enactment of this Act.

SEC. 306. CONSISTENT PENALTY PROVISIONS FOR SSDI AND SSI PROGRAMS.

    (a) Felony Penalties for Fraud.--
            (1) In general.--Subsection (a) of section 1631 of the 
        Social Security Act (42 U.S.C. 1383a) is amended by striking 
        ``shall be guilty of a misdemeanor and upon conviction thereof 
        shall be fined not more than $1,000 or imprisoned for not more 
        than one year, or both'' and inserting ``shall be guilty of a 
        felony and upon conviction thereof shall be fined under title 
        18, United States Code, or imprisoned for not more than five 
        years, or both''.
            (2) Representative payees.--
                    (A) Ssdi.--Subsections (b) and (c) of section 208 
                of such Act (42 U.S.C. 408) are amended to read as 
                follows:
    ``(b)(1) Any person or other entity who is convicted of a violation 
of any of the provisions of this section, if such violation is 
committed by such person or entity in his role as, or in applying to 
become, a certified payee under section 205(j) on behalf of another 
individual (other than such person's spouse or an entity described in 
section 223(j)(2)(B)(ii)), shall be guilty of a felony and upon 
conviction thereof shall be fined under title 18, United States Code, 
or imprisoned for not more than five years, or both.
    ``(2) In any case in which the court determines that a violation 
described in paragraph (1) includes a willful misuse of funds by such 
person or entity, the court may also require that full or partial 
restitution of such funds be made to the individual for whom such 
person or entity was the certified payee.
    ``(3) Any person or entity convicted of a felony under this section 
or under section 1632(b) may not be certified as a payee under section 
205(j).
    ``(c) For the purpose of subsection (a)(7), the terms `social 
security number' and `social security account number' mean such numbers 
as are assigned by the Secretary under section 205(c)(2) whether or 
not, in actual use, such numbers are called social security numbers.''
                    (B) Ssi.--Subsection (b)(1) of section 1632 of such 
                Act (42 U.S.C. 1383a) is amended by striking ``(other 
                than such person's spouse)'' and all that follows 
                through the period and inserting ``(other than such 
                person's spouse or an entity described in section 
                1611(e)(3)(B)(ii)(II)), shall be guilty of a felony and 
                upon conviction thereof shall be fined under title 18, 
                United States Code, or imprisoned for not more than 
                five years, or both.''
    (b) Civil Administrative Penalties.--
            (1) Ssdi.--Section 208 of the Social Security Act (42 
        U.S.C. 408) is amended by adding at the end the following new 
        subsections:
    ``(e) For administrative penalties for false claims and statements 
with respect to which an individual or other entity knows or has reason 
to know such falsity, see chapter 38 of title 31, United States Code.
    ``(f) In the case of the second or subsequent imposition of an 
administrative or criminal penalty on any person or other entity under 
this section, the Secretary may exclude such person or entity from 
participation in any program under this title and titles V, XVI, XVIII, 
and XX, and may direct that such person or entity be excluded from any 
State health care program (as defined in section 1128(h)) and any other 
Federal program as provided by law.''
            (2) Ssi.--
                    (A) In general.--Section 1632 of such Act (42 
                U.S.C. 1383a) is amended by adding at the end the 
                following new subsections:
    ``(c) For administrative penalties for false claims and statements 
with respect to which an individual or other entity knows or has reason 
to know such falsity, see chapter 38 of title 31, United States Code.
    ``(d) In the case of the second or subsequent imposition of an 
administrative or criminal penalty on any person or other entity under 
this section, the Secretary may exclude such person or entity from 
participation in any program under this title and titles II, V, XVIII, 
and XX, and may direct that such person or entity be excluded from any 
State health care program (as defined in section 1128(h)) and any other 
Federal program as provided by law.''
                    (B) Conforming amendment.--The heading for section 
                1632 of such Act (42 U.S.C. 1383a) is amended by 
                striking ``for fraud''.
    (c) Effective Date.--The amendments made by this section shall be 
effective on or after the date of the enactment of this Act.

            Attest:

                                                             Secretary.

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