I

103D CONGRESS

1ST SESSION H. R. 647

To establish the Social Security Administration as an independent agency,

which shall be headed by a Social Security Board, and which shall

be responsible for the administration of the old-age, survivors, and disability insurance program under title II of the Social Security Act and

the supplemental security income program under title XVI of such Act.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 27, 1993

Mr. JACOBS introduced the following bill; which was referred to the Committee

on Ways and Means

A BILL

To establish the Social Security Administration as an independent agency, which shall be headed by a Social Security Board, and which shall be responsible for the administration of the old-age, survivors, and disability insurance program under title II of the Social Security Act

and the supplemental security income program under

title XVI of such Act.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

4 This Act may be cited as the ‘‘Social Security Admin5 istration Independence Act of 1993’’.
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TABLE OF CONTENTS

Sec. 1. Short title and table of contents.

Sec. 2. Declaration of purposes.

TITLE I—ESTABLISHMENT OF THE SOCIAL SECURITY

ADMINISTRATION AS AN INDEPENDENT AGENCY

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

independent agency; responsibilities of the agency.

Sec. 102. Social Security Board, Executive Director, Deputy Director, Beneficiary Ombudsman; other officers.

Sec. 103. Personnel; budgetary matters; facilities; and procurement; seal of office.

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

Sec. 105. Transitional rules.

Sec. 106. Effective dates.

TITLE II—CONFORMING AMENDMENTS AND RULES OF

CONSTRUCTION

Sec. 201. Amendments to titles II and XVI of the Social Security Act.

Sec. 202. Other conforming amendments.

Sec. 203. Rules of construction.

Sec. 204. Effective dates.

1 SEC. 2. DECLARATION OF PURPOSES.

2 The purposes of this Act are as follows:

3 (1) to establish the Social Security Administra4 tion as an independent agency, separate from the

5 Department of Health and Human Services;

6 (2) to charge the Social Security Administra7 tion with administration of the old-age, survivors,

8 and disability insurance program and supplemental

9 security income program;

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

11 of the Social Security Administration and define the

12 powers and duties of such Board;
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1 (4) to establish an Executive Director of the

2 Administration and define the powers and duties of

3 the Executive Director; and

4 (5) to provide for delegating major authorities

5 to the Board and the Executive Director.

6 TITLE I—ESTABLISHMENT OF

7 THE SOCIAL SECURITY AD8 MINISTRATION AS AN INDE9 PENDENT AGENCY

10 SEC. 101. ESTABLISHMENT OF THE SOCIAL SECURITY AD11 MINISTRATION AS A SEPARATE, INDEPEND12 ENT AGENCY; RESPONSIBILITIES OF THE

13 AGENCY.

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

15 901) is amended to read as follows:

16 ‘‘SOCIAL SECURITY ADMINISTRATION

17 ‘‘SEC. 701. There is hereby established, as an inde18 pendent agency in the executive branch of the Govern19 ment, a Social Security Administration. It shall be the

20 duty of the Administration to administer the old-age, sur21 vivors, and disability insurance program under title II and

22 the supplemental security income program under title

23 XVI.’’.
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1 SEC. 102. SOCIAL SECURITY BOARD, EXECUTIVE DIRECTOR,

2 DEPUTY DIRECTOR, BENEFICIARY OMBUDS3 MAN; OTHER OFFICERS.

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

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

6 ‘‘SOCIAL SECURITY BOARD; EXECUTIVE DIRECTOR;

7 OTHER OFFICERS

8 ‘‘Social Security Board

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

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

11 composed of three members appointed by the President,

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

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

14 impartiality, and good judgment, and shall be individuals

15 who are, by reason of their education, experience, and at16 tainments, exceptionally qualified to perform the duties of

17 members of the Board.

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

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

20 years. A member of the Board may be removed only pur21 suant to a finding by the President of neglect of duty or

22 malfeasance in office. The President shall transmit any

23 such finding to the Speaker of the House of Representa24 tives and the majority leader of the Senate not later than

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

26 ‘‘(ii) Of the members first appointed—
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1 ‘‘(I) one shall be appointed for a term ending

2 June 30, 1997,

3 ‘‘(II) one shall be appointed for a term ending

4 June 30, 1999, and

5 ‘‘(III) one shall be appointed for a term ending

6 June 30, 2001,

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

8 Such members shall be appointed after active consider9 ation of recommendations made by the chairman of the

10 Committee on Ways and Means of the House of Rep11 resentatives and of recommendations made by the chair12 man of the Committee on Finance of the Senate.

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

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

15 Board before the commencement of the President’s term

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

17 Any member appointed to a term of office after the com18 mencement of such term may serve under such appoint19 ment only for the remainder of such term. A member may,

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

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

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

23 may be appointed for additional terms.

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

25 be of the same political party.
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1 ‘‘(D) A member of the Board may not, during his

2 or her term as member, engaged in any other business,

3 vocation, profession, or employment. A member of the

4 Board may continue as a member of the Board for not

5 longer than the 30-day period beginning on the date such

6 member first fails to meet the requirements of the preced7 ing sentence.

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

9 quorum, except that one member may hold hearings.

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

11 the President to serve as Chairperson of the Board for

12 a term of 4 years.

13 ‘‘(G) The Board shall meet at the call of the Chair14 person or two members of the Board.

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

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

17 ‘‘(3) The Board shall—

18 ‘‘(A) govern by regulation the old-age, survi19 vors, and disability insurance program under title II

20 and the supplemental security income program

21 under title XVI,

22 ‘‘(B) establish the Administration and oversee

23 its efficient and effective operation,
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1 ‘‘(C) establish policy and devise long-term plans

2 to promote and maintain the effective implementa3 tion of programs referred to in subparagraph (A),

4 ‘‘(D) appoint an Executive Director of the Ad5 ministration, as described in subsection (b), to act as

6 the chief operating officer of the Administration re7 sponsible for administering the programs referred to

8 in subparagraph (A),

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

10 Board of Trustees of the Federal Old-Age and Sur11 vivors Insurance Trust Fund and the Federal Dis12 ability Insurance Trust Fund, with the Chairperson

13 of the Social Security Board serving as Chairperson

14 of such Board of Trustees,

15 ‘‘(F) prepare an annual budget for the Admin16 istration, which shall be submitted by the President

17 to the Congress without revision, together with the

18 President’s annual budget for the Administration,

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

20 Congress and the President as to the most effective

21 methods of providing economic security through so22 cial insurance, supplemental security income, and re23 lated programs and as to legislation and matters of

24 administrative policy concerning the programs re25 ferred to in subparagraph (A),
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1 ‘‘(H) provide the Congress and the President

2 with the ongoing actuarial and other analysis under3 taken by the Administration with respect to the pro4 grams referred to in subparagraph (A) and any

5 other information relating to such programs, and

6 ‘‘(I) conduct policy analysis and research relat7 ing to the programs referred to in subparagraph

8 (A).

9 ‘‘(4)(A) The Board may prescribe such rules and reg10 ulations as the Board determines necessary or appropriate

11 to carry out the functions of the Administration. The reg12 ulations prescribed by the Board shall be subject to the

13 rulemaking procedures established under section 553 of

14 title 5, United States Code.

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

16 discontinue such organizational units or components with17 in the Administration as the Board considers necessary

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

19 subparagraph shall not apply with respect to any unit,

20 component, or position provided for by this Act.

21 ‘‘(C) The Board may, with respect to the administra22 tion of the old-age, survivors, and disability insurance pro23 gram under title II and the supplemental security income

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

25 authorize successive redelegations of, authority to act and
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1 to render decisions, to such officers and employees as the

2 Board may find necessary. Within the limitations of such

3 delegations, redelegations, or assignments, all official acts

4 and decisions of such officers and employees shall have

5 the same force and effect as though performed or rendered

6 by the Board.

7 ‘‘Executive Director

8 ‘‘(b)(1) There shall be in the Administration an Exec9 utive Director who shall be appointed by the Social Secu10 rity Board.

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

12 for a term of four years, except that the individual first

13 appointed to the office of Executive Director shall be ap14 pointed for a term ending September 30, 1997. An indi15 vidual appointed to a term of office as Executive Director

16 after the commencement of such term of office as Execu17 tive Director after the commencement of such term may

18 serve under such appointment only for the remainder of

19 such term. An individual may, at the request of the Chair20 person of the Board, serve as Executive Director after the

21 expiration of his or her term for not more than one year

22 until his or her successor has taken office. An individual

23 may be appointed as Executive Director for additional

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

2 of Executive Director before completion of his or her term

3 only for cause found by the Board.

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

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

6 ‘‘(4) The Executive Director shall—

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

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

10 the old-age, survivors, and disability insurance pro11 gram under title II and the supplemental security

12 income program under title XVI,

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

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

16 Board to promote and maintain the effective imple17 mentation of such programs,

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

19 costs under titles II and XVI, make annual budg20 etary recommendations to the Board for the ongoing

21 administrative costs of the Administration under this

22 Act, and defend the recommendations before the

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

2 effect on the administration of such programs of

3 proposed legislative changes in such programs,

4 ‘‘(F) serve as Secretary of the Board of Trust5 ees of the Federal Old-Age and Survivors Insurance

6 Trust Fund and the Federal Disability Insurance

7 Trust Fund,

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

9 Board for transmittal to the Congress concerning

10 the administrative endeavors and accomplishments

11 of the Administration, and

12 ‘‘(H) carry out such additional duties as are as13 signed by the Board from time to time.

14 Any reference to the Board in this Act or any other provi15 sion of law in connection with the exercise of a function

16 of the Board which is delegated to the Executive Director

17 pursuant to this section shall be considered a reference

18 to the Executive Director.

19 ‘‘Deputy Director of Social Security

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

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

22 serve at the pleasure of the Executive Director.

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

24 the rate provided for level III of the Executive Schedule.
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1 ‘‘(3) The Deputy Director shall perform such duties

2 and exercise such powers as the Executive Director shall

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

4 shall be Acting Executive Director of the Administration

5 during the absence or disability of the Executive Director

6 and, unless the Board designates another officer of the

7 Government as Acting Executive Director, in the event of

8 a vacancy in the office of the Executive Director.

9 ‘‘General Counsel

10 ‘‘(d)(1) There shall be in the Administration a Gen11 eral Counsel, who shall be appointed by and serve at the

12 pleasure of the Board. The General Counsel shall be the

13 principal legal officer in the Administration.

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

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

16 ‘‘Inspector General

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

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

19 an Inspector General appointed in accordance with the In20 spector General Act of 1978.

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

22 the rate provided for level IV of the Executive Schedule.
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1 ‘‘Beneficiary Ombudsman

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

3 of the Beneficiary Ombudsman, to be headed by a Bene4 ficiary Ombudsman appointed by the Board.

5 ‘‘(2)(A) The Beneficiary Ombudsman shall be ap6 pointed for a term of five years, except that the individual

7 first appointed to the Office of Beneficiary Ombudsman

8 shall be appointed for a term ending September 30, 1996.

9 An individual appointed to a term of office as Beneficiary

10 Ombudsman after the commencement of such term may

11 serve under such appointment only for the remainder of

12 such term. An individual may, at the request of the Chair13 person of the Board, serve as Beneficiary Ombudsman

14 after the expiration of his or her term for not more than

15 one year until his or her successor has taken office. An

16 individual may be appointed as Beneficiary Ombudsman

17 for additional terms.

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

19 of Beneficiary Ombudsman before completion of his or her

20 term only for cause found by the Board.

21 ‘‘(3) The Beneficiary Ombudsman shall be com22 pensated at the rate provided for level V of the Executive

23 Schedule.

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

25 as follows:
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1 ‘‘(A) to represent within the Administration’s

2 decisionmaking process the interests and concerns of

3 beneficiaries under the old-age, survivors, and dis4 ability insurance program under title II and the sup5 plemental security income program under title XVI;

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

7 procedures for possible adverse effects on such bene8 ficiaries;

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

10 decisionmaking process changes in policies which

11 have caused problems for such beneficiaries;

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

13 programs of individual beneficiaries in unusual or

14 difficult circumstances, as determined by the Admin15 istration; and

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

17 decisionmaking process the views of beneficiaries in

18 the design of forms and the issuance of instructions.

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

20 Beneficiary Ombudsman has staff sufficient to enable the

21 Beneficiary Ombudsman to efficiently carry out his or her

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

23 program centers, and central office of the Administration.
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1 ‘‘(6) The annual report of the Board under section

2 704 shall include a description of the activities of the Ben3 eficiary Ombudsman.

4 ‘‘Administrative Law Judge

5 ‘‘(g)(1) There shall be in the Administration an Of6 fice of the Chief Administrative Law Judge, who shall be

7 appointed by the Board. The duty of the Chief Adminis8 trative Law Judge shall be to administer the affairs of

9 the administrative law judges serving in the Administra10 tion in a manner so as to ensure that hearings and other

11 business are conducted by the administrative law judges

12 in accordance with applicable law and regulations.

13 ‘‘(2) The Chief Administrative Law Judge shall re14 port directly to the Board.’’.

15 (b) CONFORMING AMENDMENTS RELATING TO COM16 POSITION OF BOARD OF TRUSTEES OF OASDI TRUST

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

18 is amended—

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

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

21 officio’’ and inserting the following: ‘‘shall be com22 posed of the members of the Social Security Board,

23 the Secretary of Health and Human Services, all ex

24 officio’’;
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1 (2) by inserting after the first sentence the fol2 lowing new sentence: ‘‘The Chairperson of the Social

3 Security Board shall be the Chairperson of the

4 Board of Trustees.’’; and

5 (3) by striking ‘‘Commissioner of Social Secu6 rity’’ and inserting ‘‘Executive Director of the Social

7 Security Administration’’.

8 (c) INTERIM AUTHORITY OF THE COMMISSIONER.—

9 The President shall nominate for appointment the initial

10 members of the Social Security Board not later than April

11 1, 1994. In the event that, as of July 1, 1994, all members

12 of the Social Security Board have not entered upon office,

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

14 the officer serving on July 1, 1994, as Commissioner of

15 Social Security in the Department of Health and Human

16 Services (or Acting Commissioner, if applicable), or such

17 officer’s successor, shall, while continuing to serve as Com18 missioner of Social Security (or Acting Commissioner) in

19 such Department, serve as head of the Social Security Ad20 ministration established under section 701 of the Social

21 Security Act (as amended by this Act) and shall assume

22 the powers and duties of such Board and of the Executive

23 Director under such Act (as amended by this Act).
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1 SEC. 103. PERSONNEL; BUDGETARY MATTERS; FACILITIES;

2 AND PROCUREMENT; SEAL OF OFFICE.

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

4 903) is amended to read as follows:

5 ‘‘ADMINISTRATIVE DUTIES OF THE SOCIAL SECURITY

6 BOARD

7 ‘‘Personnel

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

9 appoint such additional officers and employees as it con10 siders necessary to carry out its functions. Except as oth11 erwise provided in any other provision of law, such officers

12 and employees shall be appointed, and their compensation

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

14 Code.

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

16 and consultants in accordance with the provisions of sec17 tion 3109 of title 5, United States Code.

18 ‘‘(3) The Director of the Office of Personnel Manage19 ment shall authorize for the Administration a total num20 ber of Senior Executive Service positions which is greater

21 than the number of such positions authorized in the Social

22 Security Administration in the Department of Health and

23 Human Services as of immediately before the date of the

24 enactment of the Social Security Administration Inde25 pendence Act of 1993, to the extent that the greater num26 ber of such authorized positions is specified in the com-
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1 prehensive workforce plan as established and revised by

2 the Board under subsection (b)(1). The total number of

3 such positions authorized for the Administration pursuant

4 to such section 3133 shall not at any time be less than

5 the number of such authorized positions as of immediately

6 before such date.

7 ‘‘(4) In addition to the positions of the Administra8 tion in the Executive Schedule specified in section 702,

9 the Administration is authorized six additional positions

10 at level IV of the Executive Schedule and six additional

11 positions at level V of the Executive Schedule.

12 ‘‘Budgetary Matters

13 ‘‘(b)(1) Appropriations requests for staffing and per14 sonnel of the Administration shall be based upon a com15 prehensive workforce plan, which shall be established and

16 revised from time to time by the Board. The entire amount

17 of appropriations provided for the administrative costs of

18 the Administration shall be apportioned in the time period

19 provided in title 31, United States Code, for apportion20 ment and shall be apportioned for the entire period of

21 availability without restriction or deduction by the appor22 tioning officer or employee of the Office of Management

23 and Budget or any other entity within the executive

24 branch of the Federal Government, except as otherwise

25 provided in this subsection.
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1 ‘‘(2) The report submitted pursuant to section 704

2 shall include a section reflecting the use of budget author3 ity provided to the Administration by quarters.

4 ‘‘(3)(A) The authority of the Administration for fa5 cilities construction, and any authority of the Administra6 tion for automated data processing procurement which is

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

8 authority covering the total costs thereof, to be available

9 until expended.

10 ‘‘(B) Amounts necessary for the liquidation of con11 tract authority provided pursuant to this paragraph are

12 hereby made available from the Federal Old-Age and Sur13 vivors Insurance Trust Fund and the Federal Disability

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

15 the concurrence of the Secretary of the Treasury, deter16 mines that such amounts are not necessary to meet the

17 current obligations for benefit payments from the Trust

18 Funds.

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

20 be available on a contingency basis shall be apportioned

21 only upon the occurrence of the stipulated contingency, as

22 determined by the Board and reported to each House of

23 the Congress.
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1 ‘‘Seal of Office

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

3 for the Administration of such design as the Board shall

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

5 SEC. 104. TRANSFERS TO THE NEW SOCIAL SECURITY AD6 MINISTRATION.

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

8 Security Administration all functions carried out by the

9 Secretary of Health and Human Services with respect to

10 the programs and activities the administration of which

11 is vested in the Social Security Administration by reason

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

13 Security Board shall allocate such functions in accordance

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

15 Act (as amended by this Act).

16 (b) PERSONNEL, ASSETS, ETC.—(1) There are trans17 ferred from the Department of Health and Human Serv18 ices to the Social Security Administration, for appropriate

19 allocation by the Social Security Board in the Social Secu20 rity Administration—

21 (A) the personnel (other than administrative

22 law judges) employed in connection with the func23 tions transferred by this Act and the amendments

24 made thereby, as considered appropriate by the
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1 Board in consultation with the Secretary of Health

2 and Human Services,

3 (B) such number of administrative law judges

4 as are necessary to carry out the functions trans5 ferred by this Act and the amendments made there6 by, as determined by the Board in consultation with

7 the Secretary of Health and Human Services, and

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

9 records, and unexpended balance of appropriations,

10 authorizations, allocations, and other funds em11 ployed, held, or used in connection with such func12 tions, arising from such functions, or available, or to

13 be made available, in connection with such functions.

14 (2) Unexpended funds transferred pursuant to this

15 subsection shall be used only for the purposes for which

16 the funds were originally authorized and appropriated.

17 (3) The Secretary of Health and Human Services

18 shall terminate—

19 (A) six positions in the Department of Health

20 and Human Services placed in level IV of the Execu21 tive Schedule (or equivalent positions) other than po22 sitions specifically required under section 5315 of

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

24 of law, and
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1 (B) six positions in such Department placed in

2 level V of the Executive Schedule (or equivalent po3 sitions) other than positions specifically required

4 under section 5316 of such title or any other provi5 sion of law.

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

7 personnel (except special Government employees) and

8 part-time personnel holding permanent positions shall not

9 cause any such employees to be separated or reduced in

10 grade or compensation for 1 year after such transfer or

11 July 1, 1994, whichever is later.

12 (c) ABOLISHMENT OF OFFICE OF COMMISSIONER IN

13 THE DEPARTMENT OF HEALTH AND HUMAN SERV14 ICES.—Effective upon the entry upon office of all initial

15 members of the Social Security Board pursuant to section

16 702 of the Social Security Act (as amended by this Act),

17 the position of Commissioner of Social Security in the De18 partment of Health and Human Services is abolished.

19 SEC. 105. TRANSITIONAL RULES.

20 (a) INTERIM AUTHORITY FOR APPOINTMENT AND

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

22 enactment of this Act—

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

24 702 of the Social Security Act (as amended by this
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1 Act) may enter upon office, as provided in such sec2 tion, and

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

4 office of all of the members thereof, may prescribe

5 regulations providing for the orderly transfer of pro6 ceedings before the Secretary of Health and Human

7 Services to the Social Security Board.

8 Funds available to any official or component of the De9 partment of Health and Human Services, functions of

10 which are transferred to the Social Security Board or the

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

12 with the approval of the Director of the Office of Manage13 ment and Budget, to pay the compensation and expenses

14 of any officer entering upon office pursuant to this section

15 until such time as funds for that purpose are otherwise

16 available.

17 (b) CONTINUATION OF ORDERS, DETERMINATIONS,

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

19 rules, regulations, permits, contracts, collective bargaining

20 agreements, recognitions of labor organizations, certifi21 cates, licenses, and privileges—

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

23 granted, or allowed to become effective, in the exer24 cise of functions (A) which were exercised by the

25 Secretary of Health and Human Services (or his del-
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1 egate), and (B) which relate to functions which, by

2 reason of this Act, the amendments made thereby,

3 and regulations prescribed thereunder, are vested in

4 the Social Security Board, and

5 (2) which are in effect immediately before July

6 1, 1994,

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

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

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

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

11 (c) CONTINUATION OF PROCEEDINGS.—The provi12 sions of this Act (including the amendments made there13 by) shall not affect any proceeding pending before the Sec14 retary of Health and Human Services immediately before

15 July 1, 1994, with respect to functions vested (by reason

16 of this Act, the amendments made thereby, and regula17 tions prescribed thereunder) in the Social Security Board,

18 except that such proceedings, to the extent that they relate

19 to such functions, shall continue before such Board. Or20 ders shall be issued under any such proceeding, appeals

21 taken therefrom, and payments shall be made pursuant

22 to such orders, in like manner as if this Act had not been

23 enacted, and orders issued in any such proceeding shall

24 continue in effect until modified, terminated, superseded,
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1 or repealed by such Board, by a court of competent juris2 diction, or by operation of law.

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

4 in this subsection—

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

6 suits commenced prior to July 1, 1994; and

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

8 appeals taken, and judgments rendered, in the same

9 manner and effect as if this Act had not been en10 acted. No cause of action, and no suit, action, or

11 other proceeding commenced by or against any offi12 cer in his official capacity as an officer of the De13 partment of Health and Human Services, shall abate

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

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

16 asserted by or against the United States and the So17 cial Security Administration, or such official of such

18 Administration as may be appropriate, and, in any

19 litigation pending immediately before July 1, 1994,

20 the court may at any time, on its own motion or

21 that of a party, enter an order which will give effect

22 to the provisions of this subsection (including, where

23 appropriate, an order for substitution of parties).

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

25 not have the effect of releasing or extinguishing any crimi-
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1 nal prosecution, penalty, forfeiture, or liability incurred as

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

3 the amendments made thereby, and regulations prescribed

4 thereunder) is vested in the Social Security Board.

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

6 Social Security Board in the exercise of functions vested

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

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

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

10 made and such actions had been taken by the Secretary

11 of Health and Human Services in the exercise of such

12 functions immediately before July 1, 1994. Any statutory

13 requirements relating to notice, hearings, action upon the

14 record, or administrative review that apply to any function

15 so vested in such Board shall continue to apply to the ex16 ercise of such function by such Board.

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

18 functions vested in the Social Security Board under this

19 Act, the amendments made thereby, and regulations pre20 scribed thereunder, such Board shall have the same au21 thority as that vested in the Secretary of Health and

22 Human Services with respect to the exercise of such func23 tions immediately preceding the vesting of such functions

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

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

2 EVENT OF INTERIM AUTHORITY IN THE COMMIS3 SIONER.—For purposes of this section, in any case in

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

5 Security Board are transferred to the Commissioner of So6 cial Security (or acting Commissioner) in the Department

7 of Health and Human Services for an interim period pur8 suant to section 102(c), the preceding provisions of this

9 section shall apply with respect to the transfer of such

10 powers and duties to and from such Commissioner (or act11 ing Commissioner) pursuant to section 102(c) in the same

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

13 to a direct transfer from the Secretary of Health and

14 Human Services to the Social Security Board if all mem15 bers of the Board had entered upon office.

16 SEC. 106. EFFECTIVE DATES.

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

18 104 of this Act shall take effect July 1, 1994.

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

20 take effect upon the entry upon office of all initial mem21 bers of the Social Security Board. Sections 102(c) and

22 105 of this Act shall take effect on the date of the enact23 ment of this Act.

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

25 authority provided by this title shall be effective for any
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1 fiscal year only to such extent or in such amounts as are

2 provided in advance in appropriation Acts.

3 TITLE II—CONFORMING AMEND4 MENTS AND RULES OF CON5 STRUCTION

6 SEC. 201. AMENDMENTS TO TITLES II AND XVI OF THE SO7 CIAL SECURITY ACT.

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

9 (other than section 201, section 218(d), section 226, sec10 tion 226A, and section 231(c)) and title XVI of such Act

11 are each amended—

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

13 ‘‘Secretary of Health and Human Services’’ and in14 serting ‘‘Social Security Board’’;

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

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

17 inserting ‘‘Social Security Administration’’;

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

19 ‘‘Department’’ (but only if it is not immediately suc20 ceeded by the words ‘‘of Health and Human Serv21 ices’’, and only if it is used in reference to the De22 partment of Health and Human Services) and in23 serting ‘‘Administration’’;

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

25 each of the following words (but, in the case of any
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1 such word only if such word refers to the Secretary

2 of Health and Human Services): ‘‘Secretary’’, ‘‘Sec3 retary’s’’, ‘‘his’’, ‘‘him’’, and ‘‘he’’, and inserting (in

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

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

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

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

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

9 Board’’; and

10 (5) by striking, wherever it appears therein,

11 ‘‘Internal Revenue Code of 1954’’ and inserting ‘‘In12 ternal Revenue Code of 1986’’.

13 (b) AMENDMENTS TO SECTION 218.—Section 218(d)

14 of such Act (42 U.S.C. 418(d)) is amended by striking

15 ‘‘Secretary’’ each place it appears in paragraphs (3) and

16 (7) and inserting ‘‘Social Security Board’’.

17 (c) AMENDMENTS TO SECTION 222.—Section 222(d)

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

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

20 striking ‘‘Commissioner of Social Security’’ and in21 serting ‘‘Executive Director of the Social Security

22 Administration’’; and

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

24 striking ‘‘Commissioner of Social Security’’ and in-
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1 serting ‘‘Executive Director of the Social Security

2 Administration’’.

3 (d) AMENDMENT TO SECTION 231.—Section 231(c)

4 of such Act (42 U.S.C. 431(c)) is amended by striking

5 ‘‘Secretary determines’’ and inserting ‘‘Social Security

6 Board and the Secretary jointly determine’’.

7 (e) AMENDMENT TO SECTION 1615.—Section

8 1615(d) of such Act (422 U.S.C. 1832d(d)) is amended

9 by striking ‘‘Commissioner of Social Security’’ and insert10 ing ‘‘Executive Director of the Social Security Administra11 tion’’.

12 SEC. 202. OTHER CONFORMING AMENDMENTS.

13 Title VII of the Social Security Act is amended—

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

15 inserting the following new section:

16 ‘‘REPORTS

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

18 Board shall make full reports to Congress, within 120

19 days after the beginning of each regular session, of the

20 administration of the functions with which they are

21 charged under this Act. In addition to the number of cop22 ies of such reports authorized by other law to be printed,

23 there is hereby authorized to be printed not more than

24 5,000 copies of each such report for use by the Secretary

25 and Social Security Board for distribution to Members of

26 Congress and to State and other public or private agencies
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1 or organizations participating in or concerned with the

2 programs provided for in this Act.’’;

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

4 by striking ‘‘(as estimated by the Secretary)’’ and

5 inserting ‘‘, as estimated by the Social Security

6 Board or the Secretary (whichever administers the

7 program involved),’’; and

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

9 new section:

10 ‘‘DUTIES AND AUTHORITY OF SECRETARY

11 ‘‘SEC. 712. (a) The Secretary shall perform the du12 ties imposed upon him by this Act and shall also have the

13 duty of studying and making recommendations as to the

14 most effective methods of providing economic security and

15 as to legislation and matters of administrative policy con16 cerning the programs administered by the Secretary and

17 related subjects; except that nothing in this section shall

18 be construed to require the Secretary to make studies or

19 recommendations with respect to programs administered

20 by the Social Security Administration.

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

22 the compensation of such officers and employees, and to

23 make such expenditures, as may be necessary for carrying

24 out the Secretary’s functions under this Act. Appoint25 ments of attorneys and experts may be made without re26 gard to the civil service laws.’’.
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1 SEC. 203. RULES OF CONSTRUCTION.

2 (a) REFERENCES TO THE DEPARTMENT OF HEALTH

3 AND HUMAN SERVICES.—Whenever any reference is made

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

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

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

7 Human Services with respect to such Department’s func8 tions under the old-age, survivors, and disability insurance

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

10 supplemental security income program under title XVI of

11 such Act, such reference shall be considered a reference

12 to the Social Security Administration.

13 (b) REFERENCES TO THE SECRETARY OF HEALTH

14 AND HUMAN SERVICES.—Whenever any reference is made

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

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

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

18 Human Services with respect to such Secretary’s functions

19 under such programs, such reference shall be considered

20 a reference to the Social Security Board.

21 (c) REFERENCES TO OTHER OFFICERS AND EM22 PLOYEES.—Whenever any reference is made in any provi23 sion of law (other than this Act or a provision of law

24 amended by this Act), regulation, rule, record, or docu25 ment to any other officer or employee of the Department

26 of Health and Human Services with respect to such offi-
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1 cer’s or employee’s functions under such programs, such

2 reference shall be considered a reference to the appro3 priate officer or employee of the Social Security Adminis4 tration.

5 SEC. 204. EFFECTIVE DATES.

6 (a) IN GENERAL.—The preceding provisions of this

7 title shall take effect July 1, 1994.

8 (b) NEW SPENDING AUTHORITY.—Any new spending

9 authority provided by this title shall be effective for any

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

11 provided in advance in appropriation Acts.

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