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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3487 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 3487

     To amend the Social Security Act to improve review procedures 
 (particularly those involved in the disability determination process) 
 under the OASDI, SSI, and medicare programs by making such procedures 
more cost-effective and by providing greater equity and efficiency for 
                      claimants and beneficiaries.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           November 10, 1993

Mr. Archer introduced the following bill; which was referred jointly to 
 the Committees on Ways and Means, Post Office and Civil Service, and 
                          Energy and Commerce

_______________________________________________________________________

                                 A BILL

 
     To amend the Social Security Act to improve review procedures 
 (particularly those involved in the disability determination process) 
 under the OASDI, SSI, and medicare programs by making such procedures 
more cost-effective and by providing greater equity and efficiency for 
                      claimants and beneficiaries.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    This Act may be cited as the ``Social Security Procedural 
Improvements Act of 1993''.

                           TABLE OF CONTENTS

Sec. 1. Short title and table of contents.
 TITLE I--IMPROVEMENTS IN ADMINISTRATIVE DETERMINATIONS OF DISABILITY 
                              ENTITLEMENTS

Sec. 101. Authority for the Secretary of Health and Human Services to 
                            assume from States the disability 
                            determination function.
Sec. 102. Conversion to Federal employment of State employees whose 
                            disability determination function is 
                            assumed by Secretary.
Sec. 103. Requirement of fully-insured status of worker for entitlement 
                            to child's or parent's insurance benefits.
Sec. 104. Report regarding demonstration projects piloting case 
                            management techniques.
Sec. 105. Effective date.
   TITLE II--ESTABLISHMENT OF SOCIAL SECURITY COURT AND ABOLITION OF 
                            APPEALS COUNCIL

Sec. 201. Entitlement to judicial review.
Sec. 202. Social Security Court.
Sec. 203. Abolition of Appeals Council.
Sec. 204. Effective date and transitional rules.

 TITLE I--IMPROVEMENTS IN ADMINISTRATIVE DETERMINATIONS OF DISABILITY 
                              ENTITLEMENTS

SEC. 101. AUTHORITY FOR THE SECRETARY OF HEALTH AND HUMAN SERVICES TO 
              ASSUME FROM STATES THE DISABILITY DETERMINATION FUNCTION.

    (a) Amendments to Provision Delegating to States the Disability 
Determination Function.--Section 221(a)(1) of the Social Security Act 
(42 U.S.C. 421(a)(1)) is amended--
            (1) by striking clause (A) of the first sentence and 
        inserting the following: ``(A) the Secretary has not assumed 
        the disability determination function from the State under 
        subsection (b)(1), and''; and
            (2) by striking ``makes the finding described in clause 
        (A)'' in the second sentence and inserting ``assumes the 
        disability determination function from the State as described 
        in clause (A)''.
    (b) Authority of the Secretary To Assume Function.--Section 
221(b)(1) of such Act (42 U.S.C. 421(b)(1)) is amended to read as 
follows:
    ``(b)(1) The Secretary, in his or her discretion, may at any time 
assume the disability determination function from any State in order to 
assure the effective, equitable, and uniform administration of the 
program. Determinations by the Secretary pursuant to the assumption of 
such function under this paragraph shall not be made earlier than 180 
days after the date on which the Secretary notifies the State of his or 
her intention to assume the function unless the Secretary and the State 
agree upon an earlier date.''.
    (c) Treatment of State Employees Affected by Assumption of Function 
by the Secretary.--Section 221(b)(3) of such Act (42 U.S.C. 421(b)(3)) 
is amended--
            (1) by striking subparagraph (B); and
            (2) by striking ``(3)(A) The Secretary'' and all that 
        follows down through ``from a State agency'' and inserting the 
        following:
    ``(3)(A) In any case where the Secretary notifies a State of his or 
her intention to assume the disability determination function from such 
State under paragraph (1) or where a State notifies the Secretary under 
paragraph (2) that it no longer wishes to exercise such function, 
section 102 of the Social Security Procedural Improvements Act of 1993 
shall apply with respect to the positions of persons employed by the 
State in the disability determination process under this section, and 
with respect to the persons holding those positions, in the manner and 
to the extent provided in such section 102; except that in a case where 
the notification involved is given by the State under paragraph (2) the 
Secretary may elect to apply subparagraph (B) of this paragraph instead 
of such section 102.
    ``(B) If the notification involved is by a State under paragraph 
(2) and the Secretary elects to apply this subparagraph instead of 
section 102 of the Social Security Procedural Improvements Act of 1993, 
the Secretary shall develop and initiate all appropriate procedures to 
implement a plan with respect to the assumption by the Secretary of the 
disability determination function from the State''.
    (d) Conforming Amendment.--Section 221(g) of such Act (42 U.S.C. 
421(g)) is amended by striking ``or which has been found by the 
Secretary'' and all that follows down through ``guidelines,'' and 
inserting ``or in which the Secretary has assumed the disability 
determination function under subsection (b)(1) or (b)(2),''.

SEC. 102. CONVERSION TO FEDERAL EMPLOYMENT OF STATE EMPLOYEES WHOSE 
              DISABILITY DETERMINATION FUNCTION IS ASSUMED BY 
              SECRETARY.

    (a) In General.--Except as provided in this section and in the 
amendments made by section 101, and notwithstanding any law, rule, 
regulation, or decision to the contrary, the positions of persons 
permanently employed by a State in the disability determination process 
under section 221 of the Social Security Act (42 U.S.C. 421) which 
exist on the day the Secretary notifies the State of his or her 
intention to assume the disability determination function from such 
State under subsection (b)(1) of such section or the State notifies the 
Secretary of Health and Human Services under subsection (b)(2) of such 
section that it no longer wishes to exercise such function, which are 
continued by the State from the day of such notification until the day 
before the assumption of such function by the Secretary, and which the 
Secretary determines are affected by such assumption, and the persons 
holding those positions on that day, shall, on and after the effective 
date of such assumption, be considered (unless subsection (b)(3) of 
such section applies) to be positions in and employees of the 
Department of Health and Human Services and employees of the United 
States to the same extent as other positions in and employees of such 
Department.
    (b) Crediting of State Service.--
            (1) In general.--All service of an employee whose position 
        is converted under subsection (a), performed for the State by 
        which he or she was employed on the day before the effective 
        date of such conversion and otherwise creditable under an 
        employee retirement system of (or plan sponsored by) such 
        State, shall be included and credited in the determination of 
        his or her length of service as a Federal employee for purposes 
        of leave, Federal employees' pay, group life and health 
        insurance, severance pay, tenure, and status.
            (2) Crediting of leave.--Annual leave (not in excess of 240 
        hours), and sick leave, to which an employee whose position is 
        converted under subsection (a) was entitled on the day before 
        the effective date of such conversion, shall be credited to 
        such employee in his or her new position.
    (c) Retirement.--
            (1) In general.--Except as provided in subsection (d)(1), 
        every person whose position is converted under subsection (a) 
        shall be automatically covered by chapter 84 of title 5, United 
        States Code, beginning on the effective date of such 
        conversion.
            (2) Crediting of state service.--
                    (A) In general.--Subject to subparagraph (B), 
                service of any person whose position is converted under 
                subsection (a), performed for the State by which such 
                employee was employed on the day before the effective 
                date of the conversion and otherwise creditable under 
                an employee retirement system of (or plan sponsored by) 
                such State, shall be considered ``creditable service'' 
                for purposes of the Federal Employees' Retirement 
                System, in accordance with section 8411(b)(5) of title 
                5, United States Code.
                    (B) Any state retirement refund must be paid into 
                the civil service retirement and disability fund.--In 
                the case of any person who has made contributions to an 
                employee retirement system of (or plan sponsored by) 
                the State and who under applicable State law would be 
                entitled upon the conversion to request and receive a 
                refund of such contributions, subparagraph (A) shall 
                not apply unless (under arrangements satisfactory to 
                the Director of the Office of Personnel Management) 
                such person requests and receives such refund and pays 
                it into the Civil Service Retirement and Disability 
                Fund or the State transfers the full amount thereof 
                directly to such Fund. The Director may enter into such 
                arrangements as may be necessary to carry out this 
                subparagraph with respect to any person who, with the 
                consent of the State concerned, is allowed to remain 
                covered by a State retirement system (or plan) after 
                the conversion of such person's position under 
                subsection (a).
            (3) Election to contribute to the thrift savings fund.--
                    (A) In general.--Any person who becomes subject to 
                chapter 84 of title 5, United States Code, under 
                paragraph (1) shall, under regulations prescribed by 
                the Executive Director of the Federal Retirement Thrift 
                Investment Board, be eligible to contribute to the 
                Thrift Savings Fund beginning not later than 6 months 
                after so becoming subject to such chapter.
                    (B) Terms and conditions of participation.--The 
                terms and conditions governing a person's participation 
                in the Thrift Savings Plan pursuant to this paragraph 
                shall be the same as those applicable to any other 
                employee of the Department of Health and Human Services 
                under chapter 84 of title 5, United States Code. 
                Nothing in the preceding sentence shall be considered 
                to authorize any Government contributions under section 
                8432(c) of such title for any period before the period 
                in which the person first becomes eligible to begin 
                contributing to the Thrift Savings Fund.
    (d) Continued Coverage Under State Retirement Arrangements in Lieu 
of Federal Coverage.--
            (1) Election.--Notwithstanding subsection (a), a person 
        whose position is converted under such subsection, and who on 
        the day before the effective date of such conversion has 
        attained age 50 and has performed at least 5 years of service 
        creditable under an employee retirement system of (or plan 
        sponsored by) the State concerned, may elect, not later than 
        the effective date of such conversion, to be excluded from the 
        application of subsection (c) and, with the consent of the 
        State, to remain covered by the employee retirement system of 
        (or plan sponsored by) the State.
            (2) Authority for federal payment of employer contributions 
        for persons electing to remain covered by a state system or 
        plan.--In the case of any person who files a valid election 
        under paragraph (1) to remain covered by an employee retirement 
        system of (or plan sponsored by) a State, the United States may 
        pay the amount of the employer's contributions to that system 
        (or plan) that become due for periods beginning on or after the 
        effective date of the conversion under this title. However, 
        such payment by the United States may not exceed the amount 
        which the employing agency would otherwise contribute on behalf 
        of the person to the Civil Service Retirement and Disability 
        Fund under section 8334(a) of title 5, United States Code. 
        Notwithstanding any other provision of law, service covered by 
        a valid election filed by any person under paragraph (1) shall 
        not be credited or taken into account in determining such 
        person's eligibility for (or the amount of) any rights, 
        payments, benefits, or privileges to which retired civilian 
        employees of the United States may be entitled by reason of 
        Federal civilian service (other than under the Social Security 
        Act, if applicable).
    (e) Assignment of Federal Pay Rates.--The Secretary of Health and 
Human Services shall fix the rate of basic pay of positions converted 
under subsection (a) in accordance with the General Schedule set forth 
in section 5332, or under the appropriate prevailing rate schedule in 
accordance with section 5341, of title 5, United States Code, as 
applicable (or, for any position classified above GS-15 pursuant to 
section 5108 of such title, in accordance with section 5376 of such 
title). In fixing such rate--
            (1) if the person is receiving a rate of basic pay which is 
        less than the minimum rate of the appropriate grade of the 
        General Schedule, or which is less than the minimum rate of the 
        appropriate grade or compensation level of the appropriate 
        prevailing rate schedule, as applicable, in which his or her 
        position is placed (or, in the case of a person whose position 
        is classified above GS-15, less than the minimum rate required 
        under section 5376(b)(1)(A) of such title), such person's basic 
        pay shall be increased to that minimum rate;
            (2) if the person is receiving a rate of basic pay which is 
        equal to a rate of the appropriate grade or pay level under the 
        appropriate prevailing rate schedule, as applicable, in which 
        his or her position is placed, such person shall receive basic 
        pay at that rate of the General Schedule, or at that rate under 
        the prevailing rate schedule, as applicable;
            (3) if the person is receiving a rate of basic pay which is 
        between two rates of the appropriate grade of the General 
        Schedule, or which is between two rates of the appropriate 
        grade or pay level under the appropriate prevailing rate 
        schedule, as applicable, in which his or her position is 
        placed, such person shall receive basic pay at the higher of 
        those two rates under the General Schedule or appropriate 
        prevailing rate schedule, as applicable; and
            (4) if the person is receiving a rate of basic pay which is 
        in excess of the maximum rate of the appropriate grade of the 
        General Schedule, or which is in excess of the maximum rate of 
        the appropriate grade or pay level of the appropriate 
        prevailing rate schedule, as applicable, in which his or her 
        position is placed (or, in the case of a person whose position 
        is classified above GS-15, in excess of the maximum rate 
        allowable under section 5376(b)(1)(B) of such title), such 
        person shall continue to receive basic pay without change in 
        rate until--
                    (A) he or she leaves that position, or
                    (B) he or she is entitled to receive basic pay at a 
                higher rate,
        but, when any such position becomes vacant, the rate of basic 
        pay of any subsequent appointee thereto shall be fixed in the 
        manner provided by applicable law and regulation.
    (f) Conversion Not Treated as Transfer or Promotion.--The 
conversion of positions and employees to the appropriate grades of the 
General Schedule set forth in section 5332 of title 5, United States 
Code, and the initial adjustment of rates of basic pay of those 
positions and persons provided for by this section, shall not be 
considered to be transfers or promotions within the meaning of section 
5334(b) of such title 5 and the regulations issued thereunder.
    (g) Crediting of Earned Prospective Pay Increase.--Each person 
performing service for a State on the effective date of this title 
whose position is converted under this section to the General Schedule 
set forth in section 5332 of title 5, United States Code, or to the 
appropriate prevailing rate schedule, as applicable, and who prior to 
the initial adjustment of his or her rate of basic pay under subsection 
(e) has earned, but has not been credited with, an increase in that 
rate, shall be granted credit for such increase before his or her rate 
of basic pay is initially adjusted under that subsection.    
    (h) Crediting of Satisfactory Service.--Each person performing 
service for a State on the effective date of this title whose position 
is converted under this section to the General Schedule set forth in 
section 5332 of title 5, United States Code, or to the appropriate 
prevailing rate schedule, as applicable, shall be granted credit, for 
purposes of his or her first step increase under the General Schedule 
or prevailing rate schedule, for all satisfactory service performed 
since his or her last increase in pay prior to the initial adjustment 
of his or her rate of basic pay under subsection (e).
    (i) Treatment of Conversion Pay Increase in Relation to General 
Schedule Step Increases.--An increase in rate of basic pay by reason of 
the enactment of subsection (e) shall not be considered to be an 
equivalent increase with respect to step increases for persons whose 
positions are converted to the General Schedule set forth in section 
5332 of title 5, United States Code, or the appropriate prevailing rate 
schedule, under authority of this section.
    (j) Transfers to the Civil Service Retirement and Disability 
Fund.--
            (1) Transfers.--There shall be transferred periodically to 
        the Civil Service Retirement and Disability Fund in accordance 
        with paragraph (2), from the Federal Old-Age and Survivors 
        Insurance Trust Fund, the Federal Disability Insurance Trust 
        Fund, and the general fund in the Treasury, such sums as the 
        Director of the Office of Personnel Management deems necessary 
        for any fiscal year and so certifies to the Managing Trustee of 
        the Trust Funds, on account of--
                    (A) any annuities or survivor annuities which are 
                paid or are to be paid during such fiscal year from 
                such Retirement and Disability Fund under subchapter 
                II, IV, or V of chapter 84 of title 5 of the United 
                States Code and which are payable, or the amount of 
                which is increased, by reason of the inclusion and 
                crediting (for Federal retirement or disability 
                purposes) of State service under subsection (c) (and 
                the amendments made by subsection (k)),
                    (B) the additional administrative expenses 
                resulting or expected to result therefrom, and
                    (C) any loss of interest to such Retirement and 
                Disability Fund resulting from the payment of such 
                annuities,
        in order to place such Retirement and Disability Fund in the 
        same position at the end of such fiscal year as the position in 
        which it would have been if such subsection (c) (and the 
        amendments made by subsection (k)) had not been enacted. In 
        carrying out the preceding provisions of this paragraph, any 
        amounts paid into such Retirement and Disability Fund under 
        subsection (c)(2)(B) shall be taken into account.
            (2) Source distribution of transferred funds.--The sums 
        required to be transferred to the Civil Service Retirement and 
        Disability Fund under paragraph (1) for any fiscal year shall 
        be taken--
                    (A) from the Federal Old-Age and Survivors 
                Insurance Trust Fund to the extent that (as determined 
                by the Secretary of Health and Human Services and so 
                certified to the Managing Trustee of the Trust Fund) 
                the claims considered in the exercise of the disability 
                determination function during that fiscal year by the 
                Secretary (pursuant to his or her assumption of such 
                function from the various States under section 
                221(b)(1) of the Social Security Act) involve benefits 
                which are or would be payable from that Fund;
                    (B) from the Federal Disability Insurance Trust 
                Fund to the extent that (as so determined and so 
                certified to the Managing Trustee of the Trust Fund) 
                the claims considered in the exercise of the disability 
                determination function during that fiscal year by the 
                Secretary (pursuant to his or her assumption of such 
                function from the various States under such section 
                221(b)(1)) involve benefits which are or would be 
                payable from that Fund; and
                    (C) from funds appropriated from the general fund 
                in the Treasury (and the appropriation of such funds is 
                hereby authorized) to the extent that (as so determined 
                and so certified to the Secretary of the Treasury) the 
                claims considered in the exercise of the disability 
                determination function during that fiscal year by the 
                Secretary of Health and Human Services (pursuant to his 
                or her assumption of such function from the various 
                States under such section 221(b)(1)) involve benefits 
                which are or would be payable under title XVI of such 
                Act.
    (k) Amendments to Federal Employees' Retirement Provisions in 
Chapter 84 of Title 5, United States Code.--
            (1) Definition of creditable service.--Section 8411(b) of 
        title 5, United States Code, is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (3);
                    (B) by striking the period at the end of paragraph 
                (4) and inserting ``; and''; and
                    (C) by inserting after paragraph (4) the following 
                new paragraph:
            ``(5) for an individual who becomes an employee pursuant to 
        section 102(c)(1) of the Social Security Procedural 
        Improvements Act of 1993, service performed for the State by 
        which the individual was employed on the day before the 
        effective date of the conversion of the individual's position 
        under section 102(a) of such Act (to the extent that such 
        service was performed before the effective date of the 
        conversion), subject to section 102(c)(2)(B) of such Act, and 
        only if that service is or would (but for the Social Security 
        Procedural Improvements Act of 1993, and disregarding any 
        refund described in section 102(c)(2)(B) of such Act) be 
        creditable under an employee retirement system of (or plan 
        sponsored by) such State.''.
            (2) Service for which deposits not required.--Section 8422 
        of title 5, United States Code, is amended by adding at the end 
        the following:
    ``(f) Except as provided in section 102(c)(2)(B) of the Social 
Security Procedural Improvements Act of 1993, deposit may not be 
required for any service described in section 8411(b)(5) of this 
title.''.
            (3) Adjustment of annuity to account for state retirement 
        benefits.--
                    (A) In general.--Title 5, United States Code, is 
                amended by inserting after section 8470 the following 
                new section:
``Sec. 8470a. Offset relating to certain State retirement benefits
    ``(a)(1) Subject to paragraph (2), in computing an annuity under 
subchapter II or V of this chapter based in whole or in part on an 
individual's service described in section 8411(b)(5) of this title, the 
amount of the annuity (as otherwise so computed) shall be reduced by an 
amount equal to the amount of any retirement benefits payable by a 
State to or with respect to such individual on the basis of that 
service.
    ``(2) In no event shall the application of paragraph (1) result in 
the reduction of an annuity by an amount greater than that portion of 
the annuity which is attributable to service described in section 
8411(b)(5).
    ``(b) Any survivor annuity under subchapter IV of this chapter 
which is computed based on the annuity of an individual which is 
subject to reduction under subsection (a) of this section shall be 
computed based on the annuity of such individual after such reduction.
    ``(c) The Office of Personnel Management shall prescribe such 
regulations as may be necessary to carry out this section.''.
                    (B) Chapter analysis.--The analysis for chapter 84 
                of title 5, United States Code, is amended by inserting 
                after the item relating to section 8470 the following 
                new item:

``8470a. Offset relating to certain State retirement benefits.''.
    (l) Amendments to the Social Security Act and the Internal Revenue 
Code of 1986.--
            (1) Service treated as employment under title ii of the 
        social security act.--Section 210(a)(5) of the Social Security 
        Act (42 U.S.C. 410(a)(5)) is amended by adding at the end the 
        following:
        ``and except that, in the case of an individual serving in a 
        position as of the day before the effective date of a 
        conversion of such position under section 102(a) of the Social 
        Security Procedural Improvements Act of 1993, if the service 
        performed by such individual in such position did not as of 
        such day constitute employment within the meaning of this 
        subsection, service performed by such individual on or after 
        such effective date in the employ of the United States or any 
        instrumentality of the United States shall be treated as 
        service described in this paragraph until a break in continuous 
        performance of such service (within the meaning of `continuous' 
        provided by clause (i) of subparagraph (B));''.
            (2) Service treated as employment under fica.--Paragraph 
        (5) of section 3121(b) of the Internal Revenue Code of 1986 
        (relating to definition of employment) is amended by adding at 
        the end the following:
        ``and except that, in the case of an individual serving in a 
        position as of the day before the effective date of a 
        conversion of such position under section 102(a) of the Social 
        Security Procedural Improvements Act of 1993, if the service 
        performed by such individual in such position did not as of 
        such day constitute employment within the meaning of this 
        subsection, service performed by such individual on or after 
        such effective date in the employ of the United States or any 
        instrumentality of the United States shall be treated as 
        service described in this paragraph until a break in continuous 
        performance of such service (within the meaning of `continuous' 
        provided by clause (i) of subparagraph (B));''.

SEC. 103. REQUIREMENT OF FULLY-INSURED STATUS OF WORKER FOR ENTITLEMENT 
              TO CHILD'S OR PARENT'S INSURANCE BENEFITS.

    (a) Child's Insurance Benefits.--Section 202(d) of the Social 
Security Act (42 U.S.C. 402(d)) is amended--
            (1) in paragraph (1), by striking ``fully or currently 
        insured'' and inserting ``fully insured''; and
            (2) in paragraph (3), by striking ``fully or currently 
        insured'' in the matter following subparagraph (B) and 
        inserting ``fully insured''.
    (b) Mother's and Father's Insurance Benefits.--Section 202(g)(1) of 
such Act (42 U.S.C. 402(g)(1)) is amended by striking ``fully or 
currently insured'' and inserting ``fully insured''.
    (c) Lump-Sum Death Payments.--Section 202(i) of such Act (42 U.S.C. 
402(i)) is amended by striking ``fully or currently insured'' and 
inserting ``fully insured''.
    (d) Conforming Amendments.--Section 216(h) of such Act (42 U.S.C. 
416(h)) is amended by striking ``fully or currently insured'' each 
place it appears and inserting ``fully insured''.

SEC. 104. REPORT REGARDING DEMONSTRATION PROJECTS PILOTING CASE 
              MANAGEMENT TECHNIQUES.

    Not later than December 31, 1995, the Secretary of Health and Human 
Services shall submit a report to the Committee on Ways and Means of 
the House of Representatives and the Committee on Finance of the Senate 
regarding the 4 demonstration projects conducted under the authority of 
section 505(a) of the Social Security Disability Amendments of 1980 
which currently pilot case management techniques in the disability 
insurance program under title II of the Social Security Act. Such 
report shall contain a comprehensive assessment of the results obtained 
under such projects, together with recommendations of the Secretary for 
facilitating case management services for not more than 33\1/3\ percent 
of all beneficiaries under such program by not later than December 31, 
1997, and for not more than 50 percent of such beneficiaries by not 
later than December 31, 1999, and such proposals for legislative 
changes as may be necessary and appropriate to carry out such 
recommendations.

SEC. 105. EFFECTIVE DATES.

    The amendments made by sections 101 and 102 shall take effect on 
the date of the enactment of this Act. The amendments made by section 
103 shall apply with respect to deaths occurring after December 31, 
1993.

   TITLE II--ESTABLISHMENT OF SOCIAL SECURITY COURT AND ABOLITION OF 
                            APPEALS COUNCIL

SEC. 201. ENTITLEMENT TO JUDICIAL REVIEW.

    Section 205(g) of the Social Security Act (42 U.S.C. 405(g)) is 
amended to read as follows:
    ``(g)(1) Any individual, after any final decision of the Secretary 
made after a hearing to which he was a party (under subsection (b) or 
under any other provision of this Act which authorizes a hearing in the 
same manner or to the same extent as is provided in such subsection), 
irrespective of the amount in controversy, may obtain a review of such 
decision by a civil action brought in the Social Security Court and 
commenced within 60 days after the mailing to him of notice of such 
decision or within such further time as the Secretary may allow.
    ``(2) As part of his answer in an action brought by an individual 
for the review of the decision in the Social Security Court, the 
Secretary shall file a certified copy of the transcript of the record 
including the evidence upon which the findings and decision complained 
of are based. The Social Security Court shall have power to enter, upon 
the pleadings and transcript of the record, a judgment affirming, 
modifying, or reversing the decision. The findings as to any fact, if 
supported by substantial evidence, shall be conclusive; and where the 
claim was denied by the Secretary or the decision rendered under 
subsection (b) of this section or subsection (d) of section 221 was 
adverse to any individual who was a party to the proceedings held under 
that subsection, because of the failure of the claimant or such 
individual to submit proof in conformity with any regulation made or 
adopted under subsection (a), the Court shall review only the question 
of conformity with such regulations and the validity of such 
regulations.
    ``(3) The Social Security Court may, on motion of the Secretary for 
good cause shown before he files his answer, remand the case for 
further action by an administrative law judge. The Court may also, at 
any time, order additional evidence to be taken before an 
administrative law judge on a showing that there is new material 
evidence and that there is good cause for the failure to incorporate it 
into the record of the prior proceeding.
    ``(4) The claimant and the Secretary shall be parties to the 
proceeding before an administrative law judge in any case remanded from 
the Social Security Court. The administrative law judge shall file with 
the Court his decision and any additional or modified findings of fact 
resulting from the proceeding, which shall be reviewable only to the 
same extent as the original decision and findings. The filing shall 
include a transcript of the additional record on which the modification 
or affirmance of the original decision and findings was based.
    ``(5) The judgment of the Social Security Court shall be final 
except that it shall be subject to review as provided in section 
712(g).
    ``(6) Any action instituted in accordance with this subsection 
shall survive notwithstanding any change in the person occupying the 
office of Secretary or any vacancy in such office.''.

SEC. 202. SOCIAL SECURITY COURT.

    (a) In General.--Title VII of the Social Security Act is amended by 
inserting after section 711 (42 U.S.C. 912) the following new section:

                        ``social security court

                            ``Establishment

    ``Sec. 712. (a) There is hereby established a court of record to be 
known as the Social Security Court.

                             ``Jurisdiction

    ``(b) The Social Security Court (and its divisions established 
under subsection (d)(1)) shall have exclusive jurisdiction, in actions 
brought as described in section 205(g), to review decisions rendered 
under sections 205(b) and 221(d), final determinations made under 
section 1631(c)(3), and final decisions rendered under sections 
1128(f), 1155, 1156(b)(4), 1866(h)(1), 1869(b)(1), 1876(c)(5)(B), 
1881(g)(3), and 1910(b)(2) and shall have exclusive jurisdiction in all 
other cases and proceedings arising under titles II, XVI, and XVIII and 
in all cases and proceedings involving the validity or administration 
of such titles, regardless of the form or manner in which such cases 
and proceedings are brought.

                                ``Judges

    ``(c)(1) The Social Security Court shall be composed of 20 judges, 
appointed by the President, by and with the advice and consent of the 
Senate, solely on the grounds of fitness to perform the duties of the 
office. The President shall appoint one of the judges of the Court as 
its chief judge.
    ``(2) The chief judge of the Social Security Court shall receive a 
salary at the same rate and in the same installments as judges of the 
district courts of the United States; and the other judges of the Court 
shall receive a salary at the rate provided for positions in level V of 
the Executive Schedule (5 U.S.C. 5316).
    ``(3) Judges of the Social Security Court shall receive necessary 
traveling expenses, and expenses actually incurred for subsistence 
while traveling on duty and away from their designated stations, 
subject to the same limitations on amount as are now or may hereafter 
be applicable to the United States Customs Court.
    ``(4) The term of office of any judge of the Social Security Court 
shall expire 10 years after he takes office.
    ``(5)(A) A judge of the Social Security Court may be removed by the 
President, but only during the term for which such judge is appointed 
and only for incompetency, misconduct, neglect of duty, engaging in the 
practice of law, or physical or mental disability.
    ``(B) Before any order of removal may be entered, a full 
specification of the charges shall be furnished to the judge involved, 
and the judge shall be accorded an opportunity to be heard on the 
charges.
    ``(C) Any cause for removal of any judge of the Social Security 
Court coming to the knowledge of the Director of the Administrative 
Office of the United States Courts shall be reported by him to the 
President, and a copy of the report shall at the same time be 
transmitted to the judge.
    ``(D) A judge removed from office under this section shall not be 
permitted at any time to practice before the Social Security Court.

                        ``Organizational Matters

    ``(d)(1) In order that cases may be heard throughout the United 
States in a manner which will promote the objective specified in 
paragraph (3), the chief judge may from time to time divide the Social 
Security Court into divisions of one or more judges, assign the judges 
of the Court thereto, and, in the case of a division of more than one 
judge, designate a chief thereof. If a division, as a result of a 
vacancy or the absence or inability of a judge assigned thereto, is 
composed of less than the number of judges designated for the division, 
the chief judge may assign other judges to the division or direct the 
division to proceed with the transaction of business without awaiting 
any additional assignment of judges thereto.
    ``(2) The Social Security Court or any of its divisions may sit at 
any place within the United States.
    ``(3) The times and places of the sessions of the Social Security 
Court and of its divisions shall be prescribed by the chief judge with 
the objective of securing reasonable opportunity to claimants to appear 
before the Court or any of its divisions with as little inconvenience 
and expense as is practicable.

                          ``Procedural Matters

    ``(e)(1) A majority of the judges of the Social Security Court or 
of any division thereof shall constitute a quorum for the transaction 
of the business of the Court or of such division, respectively. A 
vacancy in the Social Security Court or in any division thereof shall 
not impair the powers or affect the duties of the Court or such 
division or of the remaining judges of the Court or such division, 
respectively.
    ``(2) The proceedings of the Social Security Court and its 
divisions shall be conducted in accordance with such rules of practice 
and procedure as the Court may prescribe. The rules of practice and 
procedure prescribed by the Court under the preceding sentence may 
provide for the imposition of fees for the filing of petitions, but any 
such fee may be waived by the Court in any case upon a determination 
that the imposition of such fee would cause hardship to the claimant. 
The rules of practice and procedure so prescribed may also specify 
qualifications for persons representing claimants, but no qualified 
person may be denied admission to practice before the Court because of 
his failure to be a member of any profession or calling.
    ``(3) The mailing by certified mail or registered mail of any 
pleading, decision, order, notice, or process in respect of proceedings 
before the Social Security Court shall be held sufficient service of 
such pleading, decision, order, notice, or process.
    ``(4) The chief judge may from time to time appoint commissioners, 
in sufficient numbers to meet the needs of the Social Security Court, 
who shall proceed under such rules and regulations as may be 
promulgated by the Court. Each commissioner shall receive the same 
compensation and travel and subsistence allowances provided by law for 
commissioners of the United States Court of Claims.
    ``(5) The Social Security Court and each division thereof shall 
have power to punish by fine or imprisonment, at its discretion, any 
contempt of its authority in the form of--
            ``(A) misbehavior of any person in its presence or so near 
        thereto as to obstruct the administration of justice;    
            ``(B) misbehavior of any of its officers in their official 
        transactions; or
            ``(C) disobedience or resistance to its lawful writ, 
        process, order, rule, decree, or command.
It shall have such assistance in the carrying out of its lawful writ, 
process, order, rule, decree, or command as is available to a court of 
the United States.
    ``(6) Notice and opportunity to be heard upon any proceeding in the 
Social Security Court or any division thereof shall be given to the 
claimant and the Secretary. If an opportunity to be heard upon the 
proceeding is given before a division of the Court, neither the 
claimant nor the Secretary shall be entitled to notice and opportunity 
to be heard before the Court upon review, except upon a specific order 
of the chief judge. Hearings before the Social Security Court and its 
divisions shall be open to the public, and the proceedings shall be 
stenographically reported. The Court is authorized to contract (by 
renewal of contract or otherwise) for the reporting of such 
proceedings, and in any such contract to fix the terms and conditions 
under which transcripts will be supplied by the contractor to the Court 
and to other persons and agencies.
    ``(7) A decision in any proceeding in the Social Security Court or 
a division thereof shall be rendered as quickly as practicable. The 
decision made (and any order granted pursuant thereto) shall, when 
entered, be the decision (and order) of the Social Security Court, 
except as otherwise provided in paragraph (8). It shall be the duty of 
the Court and of each division to render its decision in writing.
    ``(8) A division shall hear, and make a written decision upon, any 
proceeding instituted before the Social Security Court (including any 
motion in connection therewith) which is assigned to such division by 
the chief judge, and such decision shall constitute its final 
disposition of the proceeding. The decision of the division shall 
become the decision of the Court within 60 days after such decision by 
the division, unless (A) within such period a party to the proceedings 
has petitioned the chief judge for direct review of the decision and 
(before or after the expiration of such period) the chief judge has 
granted such petition, or (B) within such period the chief judge on his 
own motion has directed that such decision shall be reviewed by the 
Court. The chief judge may provide that any such review be conducted by 
the Court itself en banc or may assign the decision to be reviewed to a 
panel consisting of at least three judges of the Court (not including 
any judge who was a member of the division which made the decision); 
and any order or decision made by such a panel upon such a review shall 
be the decision of the Social Security Court.
    ``(9)(A) All proceedings, decisions, and orders of the Social 
Security Court and its divisions, including a transcript of the 
stenographic report of the proceedings, shall be public records open to 
the inspection of the public.
    ``(B) The Social Security Court shall provide for the publication 
at the Government Printing Office of any of its decisions which the 
chief judge determines will or may serve as precedents in subsequent 
cases, in such form and manner as may be best adapted for public 
information and use, and such authorized publication shall be competent 
evidence of the decisions of the Social Security Court therein 
contained in all courts of the United States and of the several States 
without any further proof of authentication thereof. Such decision 
shall be subject to sale in the same manner and upon the same terms as 
other public documents.
    ``(10) The Social Security Court shall have a seal which shall be 
judicially noticed.

                        ``Administrative Matters

    ``(f)(1) The Social Security Court is authorized to appoint, in 
accordance with the provisions of title 5, United States Code, 
governing appointments in the competitive service, and to fix the basic 
pay of, in accordance with chapter 51 and subchapter III of chapter 53 
of such title, such employees as may be necessary efficiently and 
effectively to execute the functions vested in the Court.
    ``(2) The employees of the Social Security Court shall receive 
their necessary traveling expenses, and expenses for subsistence while 
traveling on duty and away from their designated stations, as provided 
in chapter 57 of title 5, United States Code.
    ``(3) The Social Security Court is authorized to make such 
expenditures (including expenditures for personal services and rent at 
the seat of government and elsewhere, and for lawbooks, books of 
reference, and periodicals) as may be necessary to execute efficiently 
the functions vested in the Court. All expenditures of the Court shall 
be allowed and paid, out of any moneys appropriated for purposes of the 
Court, upon presentation of itemized vouchers therefor signed by the 
certifying officer designated by the chief judge.
    ``(4) All fees received by the Social Security Court shall be 
covered into the Treasury as miscellaneous receipts.
    ``(5) The Social Security Court is authorized to fix and impose a 
fee, not in excess of the fee fixed by law to be charged and collected 
therefor by the clerks of the district courts, for comparing, or for 
preparing and comparing, a transcript of the record, or for copying any 
record, entry, or other paper and the comparison and certification 
thereof; except that any fee so fixed may be waived by the Court in any 
case upon a determination that the imposition of such a fee would cause 
hardship to a claimant.

                        ``Appeals From the Court

    ``(g) The United States Court of Appeals for the Federal Circuit 
shall have exclusive jurisdiction to review the decisions of the Social 
Security Court upon appeal by either the Secretary or the claimant; but 
a party may not apply to the court of appeals for leave to appeal such 
a decision unless such decision was made or reviewed by the Social 
Security Court en banc or reviewed by a panel described in subsection 
(e)(8), or was the subject of a petition under subsection (e)(8) for 
review by the Social Security Court en banc and such petition was 
denied. Any such appeal to the court of appeals shall be subject to the 
same provisions, conditions, and requirements (including further review 
by the United States Supreme Court in accordance with section 1254 of 
title 28, United States Code) as an appeal from a final decision of a 
district court of the United States under chapter 83 of such title 28.

                         ``Retirement of Judges

    ``(h) Judges of the Social Security Court shall retire and be 
entitled to retired pay, and widows and dependent children of such 
judges shall be entitled to annuities, in the same manner and subject 
to the same provisions, conditions, and requirements as judges of the 
United States Tax Court (and their widows and dependent children) under 
sections 7447 and 7448 of the Internal Revenue Code of 1986. The chief 
judge of the Social Security Court first appointed, in consultation 
with the Office of Personnel Management, shall within 120 days after 
such appointment submit to the President and the Congress his 
recommendations for appropriate legislative and administrative action 
to implement the retirement system established by the preceding 
sentence.

   ``Availability of Trust Funds and Authorization of Appropriations

    ``(i)(1) The expenses of the Social Security Court shall be paid--
            ``(A) from the Federal Old-Age and Survivors Insurance 
        Trust Fund to the extent that such expenses are attributable to 
        cases involving claims which are or would be payable from that 
        Fund;
            ``(B) from the Federal Disability Insurance Trust Fund to 
        the extent that such expenses are attributable to cases 
        involving claims which are or would be payable from that Fund;
            ``(C) from the Federal Hospital Insurance Trust Fund to the 
        extent that such expenses are attributable to cases involving 
        claims which are or would be payable from that Fund; and
            ``(D) from funds appropriated for purposes of this section 
        (and the appropriation of such funds is hereby authorized) to 
        the extent that such expenses are attributable to (i) cases 
        involving claims which are or would be payable under title XVI 
        or (ii) other cases or proceedings not involving the payment of 
        specific claims from any of such Trust Funds.
    ``(2) Payments to the Social Security Court from the Trust Funds 
specified in subparagraphs (A), (B), and (C) of paragraph (1) shall be 
made on the first day of each calendar quarter, on the basis of 
estimates (by the Managing Trustee of such Funds) of the amount of the 
expenses to be incurred by the Court during that quarter which are 
attributable to cases within each of the categories described in such 
subparagraphs; and proper adjustments shall be made in subsequent 
payments to the Court under this subsection to the extent that prior 
estimates (with respect to cases within any such category) were in 
excess of or were less than they should have been.''.
    (b) Conforming Amendments.--
            (1)(A) Section 205(c)(8) of such Act (42 U.S.C. 405(c)(8)) 
        is amended by striking ``the United States district court'' and 
        inserting ``the Social Security Court,''.
            (B) Section 221(d) of such Act (42 U.S.C. 421(d)) is 
        amended by striking ``judicial review of the Secretary's final 
        decision'' and inserting ``review of the Secretary's final 
        decision in the Social Security Court''.
            (C) Sections 1128(f), 1155, and 1156(b)(4) of such Act (42 
        U.S.C. 1320a-7(f), 1320c-4, and 1320c-5(b)(4)) are each amended 
        by striking ``judicial review of the Secretary's final 
        decision'' and inserting ``review of the Secretary's final 
        decision in the Social Security Court''.
            (D) Section 1631(c)(3) of such Act (42 U.S.C. 1383(c)(3)) 
        is amended by striking ``judicial review'' and inserting 
        ``review in the Social Security Court''.
            (E) Sections 1866(h)(1), 1869(b)(1), 1876(c)(5)(B), 
        1881(g)(3), and 1910(b)(2) of such Act (42 U.S.C. 1395cc(h)(1), 
        1395ff(b)(1), 1395mm(c)(5)(B), 1395rr(g)(3), and 1396i(b)(2)) 
        are each amended by striking ``judicial review of the 
        Secretary's final decision'' and inserting ``review of the 
        Secretary's final decision in the Social Security Court''.
            (2)(A) Section 201(h) of such Act (42 U.S.C. 401(h)) is 
        amended--
                    (i) by inserting ``along with expenditures for any 
                related expenses of the Social Security Court with 
                respect to cases involving claims for such payments as 
                described in section 712(i)(1)(B),'' immediately before 
                ``shall be made'' in the first sentence; and
                    (ii) by inserting ``, along with expenditures for 
                any related expenses of the Social Security Court with 
                respect to cases involving claims for such payments as 
                described in section 712(i)(1)(A),'' immediately before 
                ``shall be made'' in the second sentence.
            (B) Section 1817(h) of such Act (42 U.S.C. 1395i(h)) is 
        amended by inserting before the period at the end the 
        following: ``, and such amounts as are necessary to pay the 
        expenses of the Social Security Court with respect to cases 
        involving claims for payments under this part as described in 
        section 712(i)(1)(C)''.

SEC. 203. ABOLITION OF APPEALS COUNCIL.

    (a) Abolition of the Appeals Council.--The Appeals Council in the 
Department of Health and Human Services is abolished.
    (b) Continued Authority of Secretary.--Nothing in subsection (a) 
shall be construed to limit to any extent the authority of the 
Secretary of Health and Human Services under the Social Security Act to 
hold such hearings and to conduct such investigations and other 
proceedings as he or she may deem necessary or proper for the 
administration of such Act.

SEC. 204. EFFECTIVE DATE AND TRANSITIONAL RULES.

    (a) Effective Date.--The provisions of this title relating to the 
establishment and constitution of the Social Security Court shall be 
effective on the date of the enactment of this Act; but the amendments 
made by this title relating to decisions rendered and determinations 
made on claims under titles II, XVI, and XVIII of the Social Security 
Act (including the abolition of the Appeals Council under section 203) 
shall apply only in the case of decisions rendered and determinations 
made one year or more after such date.
    (b) Expedited Procedures During One-Year Transitional Period.--
During the one-year period beginning on the date of the enactment of 
this Act, the proceedings held in the district courts of the United 
States in cases involving final decisions of the Secretary rendered and 
final determinations of the Secretary made on claims under titles II, 
XVI, and XVIII of the Social Security Act shall be preferred cases and 
shall be expedited in every way.
    (c) Transfer of Cases From Appeals Council to Social Security 
Court.--Cases pending before the Appeals Council in the Department of 
Health and Human Services at the expiration of the one-year period 
beginning on the date of the enactment of this Act shall be transferred 
to the Social Security Court and shall be deemed to have been timely 
filed in such Court; but the claimant in any such case shall have the 
right to withdraw the case from such Court at any time.

                                 <all>

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