I

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 costeffective 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.

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 Proce5 dural Improvements Act of 1993’’.
2

•HR 3487 IH

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.

1 TITLE I—IMPROVEMENTS IN ADMINISTRATIVE

2 DETERMINATIONS OF DISABILITY ENTI3 TLEMENTS

4 SEC. 101. AUTHORITY FOR THE SECRETARY OF HEALTH

5 AND HUMAN SERVICES TO ASSUME FROM

6 STATES THE DISABILITY DETERMINATION

7 FUNCTION.

8 (a) AMENDMENTS TO PROVISION DELEGATING TO

9 STATES THE DISABILITY DETERMINATION FUNCTION.—

10 Section 221(a)(1) of the Social Security Act (42 U.S.C.

11 421(a)(1)) is amended—

12 (1) by striking clause (A) of the first sentence

13 and inserting the following: ‘‘(A) the Secretary has

14 not assumed the disability determination function

15 from the State under subsection (b)(1), and’’; and
3

•HR 3487 IH

1 (2) by striking ‘‘makes the finding described in

2 clause (A)’’ in the second sentence and inserting

3 ‘‘assumes the disability determination function from

4 the State as described in clause (A)’’.

5 (b) AUTHORITY OF THE SECRETARY TO ASSUME

6 FUNCTION.—Section 221(b)(1) of such Act (42 U.S.C.

7 421(b)(1)) is amended to read as follows:

8 ‘‘(b)(1) The Secretary, in his or her discretion, may

9 at any time assume the disability determination function

10 from any State in order to assure the effective, equitable,

11 and uniform administration of the program. Determina12 tions by the Secretary pursuant to the assumption of such

13 function under this paragraph shall not be made earlier

14 than 180 days after the date on which the Secretary noti15 fies the State of his or her intention to assume the func16 tion unless the Secretary and the State agree upon an ear17 lier date.’’.

18 (c) TREATMENT OF STATE EMPLOYEES AFFECTED

19 BY ASSUMPTION OF FUNCTION BY THE SECRETARY.—

20 Section 221(b)(3) of such Act (42 U.S.C. 421(b)(3)) is

21 amended—

22 (1) by striking subparagraph (B); and

23 (2) by striking ‘‘(3)(A) The Secretary’’ and all

24 that follows down through ‘‘from a State agency’’

25 and inserting the following:
4

•HR 3487 IH

1 ‘‘(3)(A) In any case where the Secretary notifies a

2 State of his or her intention to assume the disability deter3 mination function from such State under paragraph (1)

4 or where a State notifies the Secretary under paragraph

5 (2) that it no longer wishes to exercise such function, sec6 tion 102 of the Social Security Procedural Improvements

7 Act of 1993 shall apply with respect to the positions of

8 persons employed by the State in the disability determina9 tion process under this section, and with respect to the

10 persons holding those positions, in the manner and to the

11 extent provided in such section 102; except that in a case

12 where the notification involved is given by the State under

13 paragraph (2) the Secretary may elect to apply subpara14 graph (B) of this paragraph instead of such section 102.

15 ‘‘(B) If the notification involved is by a State under

16 paragraph (2) and the Secretary elects to apply this sub17 paragraph instead of section 102 of the Social Security

18 Procedural Improvements Act of 1993, the Secretary shall

19 develop and initiate all appropriate procedures to imple20 ment a plan with respect to the assumption by the Sec21 retary of the disability determination function from the

22 State’’.

23 (d) CONFORMING AMENDMENT.—Section 221(g) of

24 such Act (42 U.S.C. 421(g)) is amended by striking ‘‘or

25 which has been found by the Secretary’’ and all that fol-
5

•HR 3487 IH

1 lows down through ‘‘guidelines,’’ and inserting ‘‘or in

2 which the Secretary has assumed the disability determina3 tion function under subsection (b)(1) or (b)(2),’’.

4 SEC. 102. CONVERSION TO FEDERAL EMPLOYMENT OF

5 STATE EMPLOYEES WHOSE DISABILITY DE6 TERMINATION FUNCTION IS ASSUMED BY

7 SECRETARY.

8 (a) IN GENERAL.—Except as provided in this section

9 and in the amendments made by section 101, and notwith10 standing any law, rule, regulation, or decision to the con11 trary, the positions of persons permanently employed by

12 a State in the disability determination process under sec13 tion 221 of the Social Security Act (42 U.S.C. 421) which

14 exist on the day the Secretary notifies the State of his

15 or her intention to assume the disability determination

16 function from such State under subsection (b)(1) of such

17 section or the State notifies the Secretary of Health and

18 Human Services under subsection (b)(2) of such section

19 that it no longer wishes to exercise such function, which

20 are continued by the State from the day of such notifica21 tion until the day before the assumption of such function

22 by the Secretary, and which the Secretary determines are

23 affected by such assumption, and the persons holding

24 those positions on that day, shall, on and after the effec25 tive date of such assumption, be considered (unless sub-
6

•HR 3487 IH

1 section (b)(3) of such section applies) to be positions in

2 and employees of the Department of Health and Human

3 Services and employees of the United States to the same

4 extent as other positions in and employees of such Depart5 ment.

6 (b) CREDITING OF STATE SERVICE.—

7 (1) IN GENERAL.—All service of an employee

8 whose position is converted under subsection (a),

9 performed for the State by which he or she was em10 ployed on the day before the effective date of such

11 conversion and otherwise creditable under an em12 ployee retirement system of (or plan sponsored by)

13 such State, shall be included and credited in the de14 termination of his or her length of service as a Fed15 eral employee for purposes of leave, Federal employ16 ees’ pay, group life and health insurance, severance

17 pay, tenure, and status.

18 (2) CREDITING OF LEAVE.—Annual leave (not

19 in excess of 240 hours), and sick leave, to which an

20 employee whose position is converted under sub21 section (a) was entitled on the day before the effec22 tive date of such conversion, shall be credited to

23 such employee in his or her new position.

24 (c) RETIREMENT.—
7

•HR 3487 IH

1 (1) IN GENERAL.—Except as provided in sub2 section (d)(1), every person whose position is con3 verted under subsection (a) shall be automatically

4 covered by chapter 84 of title 5, United States Code,

5 beginning on the effective date of such conversion.

6 (2) CREDITING OF STATE SERVICE.—

7 (A) IN GENERAL.—Subject to subpara8 graph (B), service of any person whose position

9 is converted under subsection (a), performed for

10 the State by which such employee was employed

11 on the day before the effective date of the con12 version and otherwise creditable under an em13 ployee retirement system of (or plan sponsored

14 by) such State, shall be considered ‘‘creditable

15 service’’ for purposes of the Federal Employees’

16 Retirement System, in accordance with section

17 8411(b)(5) of title 5, United States Code.

18 (B) ANY STATE RETIREMENT REFUND

19 MUST BE PAID INTO THE CIVIL SERVICE RE20 TIREMENT AND DISABILITY FUND.—In the case

21 of any person who has made contributions to an

22 employee retirement system of (or plan spon23 sored by) the State and who under applicable

24 State law would be entitled upon the conversion

25 to request and receive a refund of such con-
8

•HR 3487 IH

1 tributions, subparagraph (A) shall not apply

2 unless (under arrangements satisfactory to the

3 Director of the Office of Personnel Manage4 ment) such person requests and receives such

5 refund and pays it into the Civil Service Retire6 ment and Disability Fund or the State trans7 fers the full amount thereof directly to such

8 Fund. The Director may enter into such ar9 rangements as may be necessary to carry out

10 this subparagraph with respect to any person

11 who, with the consent of the State concerned,

12 is allowed to remain covered by a State retire13 ment system (or plan) after the conversion of

14 such person’s position under subsection (a).

15 (3) ELECTION TO CONTRIBUTE TO THE THRIFT

16 SAVINGS FUND.—

17 (A) IN GENERAL.—Any person who be18 comes subject to chapter 84 of title 5, United

19 States Code, under paragraph (1) shall, under

20 regulations prescribed by the Executive Direc21 tor of the Federal Retirement Thrift Invest22 ment Board, be eligible to contribute to the

23 Thrift Savings Fund beginning not later than 6

24 months after so becoming subject to such chap25 ter.
9

•HR 3487 IH

1 (B) TERMS AND CONDITIONS OF PARTICI2 PATION.—The terms and conditions governing a

3 person’s participation in the Thrift Savings

4 Plan pursuant to this paragraph shall be the

5 same as those applicable to any other employee

6 of the Department of Health and Human Serv7 ices under chapter 84 of title 5, United States

8 Code. Nothing in the preceding sentence shall

9 be considered to authorize any Government con10 tributions under section 8432(c) of such title

11 for any period before the period in which the

12 person first becomes eligible to begin contribut13 ing to the Thrift Savings Fund.

14 (d) CONTINUED COVERAGE UNDER STATE RETIRE15 MENT ARRANGEMENTS IN LIEU OF FEDERAL COV16 ERAGE.—

17 (1) ELECTION.—Notwithstanding subsection

18 (a), a person whose position is converted under such

19 subsection, and who on the day before the effective

20 date of such conversion has attained age 50 and has

21 performed at least 5 years of service creditable

22 under an employee retirement system of (or plan

23 sponsored by) the State concerned, may elect, not

24 later than the effective date of such conversion, to

25 be excluded from the application of subsection (c)
10

•HR 3487 IH

1 and, with the consent of the State, to remain cov2 ered by the employee retirement system of (or plan

3 sponsored by) the State.

4 (2) AUTHORITY FOR FEDERAL PAYMENT OF

5 EMPLOYER CONTRIBUTIONS FOR PERSONS ELECTING

6 TO REMAIN COVERED BY A STATE SYSTEM OR

7 PLAN.—In the case of any person who files a valid

8 election under paragraph (1) to remain covered by

9 an employee retirement system of (or plan sponsored

10 by) a State, the United States may pay the amount

11 of the employer’s contributions to that system (or

12 plan) that become due for periods beginning on or

13 after the effective date of the conversion under this

14 title. However, such payment by the United States

15 may not exceed the amount which the employing

16 agency would otherwise contribute on behalf of the

17 person to the Civil Service Retirement and Disability

18 Fund under section 8334(a) of title 5, United States

19 Code. Notwithstanding any other provision of law,

20 service covered by a valid election filed by any per21 son under paragraph (1) shall not be credited or

22 taken into account in determining such person’s eli23 gibility for (or the amount of) any rights, payments,

24 benefits, or privileges to which retired civilian em25 ployees of the United States may be entitled by rea-
11

•HR 3487 IH

1 son of Federal civilian service (other than under the

2 Social Security Act, if applicable).

3 (e) ASSIGNMENT OF FEDERAL PAY RATES.—The

4 Secretary of Health and Human Services shall fix the rate

5 of basic pay of positions converted under subsection (a)

6 in accordance with the General Schedule set forth in sec7 tion 5332, or under the appropriate prevailing rate sched8 ule in accordance with section 5341, of title 5, United

9 States Code, as applicable (or, for any position classified

10 above GS–15 pursuant to section 5108 of such title, in

11 accordance with section 5376 of such title). In fixing such

12 rate—

13 (1) if the person is receiving a rate of basic pay

14 which is less than the minimum rate of the appro15 priate grade of the General Schedule, or which is

16 less than the minimum rate of the appropriate grade

17 or compensation level of the appropriate prevailing

18 rate schedule, as applicable, in which his or her posi19 tion is placed (or, in the case of a person whose po20 sition is classified above GS–15, less than the mini21 mum rate required under section 5376(b)(1)(A) of

22 such title), such person’s basic pay shall be in23 creased to that minimum rate;

24 (2) if the person is receiving a rate of basic pay

25 which is equal to a rate of the appropriate grade or
12

•HR 3487 IH

1 pay level under the appropriate prevailing rate

2 schedule, as applicable, in which his or her position

3 is placed, such person shall receive basic pay at that

4 rate of the General Schedule, or at that rate under

5 the prevailing rate schedule, as applicable;

6 (3) if the person is receiving a rate of basic pay

7 which is between two rates of the appropriate grade

8 of the General Schedule, or which is between two

9 rates of the appropriate grade or pay level under the

10 appropriate prevailing rate schedule, as applicable,

11 in which his or her position is placed, such person

12 shall receive basic pay at the higher of those two

13 rates under the General Schedule or appropriate

14 prevailing rate schedule, as applicable; and

15 (4) if the person is receiving a rate of basic pay

16 which is in excess of the maximum rate of the ap17 propriate grade of the General Schedule, or which is

18 in excess of the maximum rate of the appropriate

19 grade or pay level of the appropriate prevailing rate

20 schedule, as applicable, in which his or her position

21 is placed (or, in the case of a person whose position

22 is classified above GS–15, in excess of the maximum

23 rate allowable under section 5376(b)(1)(B) of such

24 title), such person shall continue to receive basic pay

25 without change in rate until—
13

•HR 3487 IH

1 (A) he or she leaves that position, or

2 (B) he or she is entitled to receive basic

3 pay at a higher rate,

4 but, when any such position becomes vacant, the

5 rate of basic pay of any subsequent appointee there6 to shall be fixed in the manner provided by applica7 ble law and regulation.

8 (f) CONVERSION NOT TREATED AS TRANSFER OR

9 PROMOTION.—The conversion of positions and employees

10 to the appropriate grades of the General Schedule set

11 forth in section 5332 of title 5, United States Code, and

12 the initial adjustment of rates of basic pay of those posi13 tions and persons provided for by this section, shall not

14 be considered to be transfers or promotions within the

15 meaning of section 5334(b) of such title 5 and the regula16 tions issued thereunder.

17 (g) CREDITING OF EARNED PROSPECTIVE PAY IN18 CREASE.—Each person performing service for a State on

19 the effective date of this title whose position is converted

20 under this section to the General Schedule set forth in

21 section 5332 of title 5, United States Code, or to the ap22 propriate prevailing rate schedule, as applicable, and who

23 prior to the initial adjustment of his or her rate of basic

24 pay under subsection (e) has earned, but has not been

25 credited with, an increase in that rate, shall be granted
14

•HR 3487 IH

1 credit for such increase before his or her rate of basic pay

2 is initially adjusted under that subsection.

3 (h) CREDITING OF SATISFACTORY SERVICE.—Each

4 person performing service for a State on the effective date

5 of this title whose position is converted under this section

6 to the General Schedule set forth in section 5332 of title

7 5, United States Code, or to the appropriate prevailing

8 rate schedule, as applicable, shall be granted credit, for

9 purposes of his or her first step increase under the General

10 Schedule or prevailing rate schedule, for all satisfactory

11 service performed since his or her last increase in pay

12 prior to the initial adjustment of his or her rate of basic

13 pay under subsection (e).

14 (i) TREATMENT OF CONVERSION PAY INCREASE IN

15 RELATION TO GENERAL SCHEDULE STEP INCREASES.—

16 An increase in rate of basic pay by reason of the enact17 ment of subsection (e) shall not be considered to be an

18 equivalent increase with respect to step increases for per19 sons whose positions are converted to the General Sched20 ule set forth in section 5332 of title 5, United States Code,

21 or the appropriate prevailing rate schedule, under author22 ity of this section.

23 (j) TRANSFERS TO THE CIVIL SERVICE RETIREMENT

24 AND DISABILITY FUND.—
15

•HR 3487 IH

1 (1) TRANSFERS.—There shall be transferred

2 periodically to the Civil Service Retirement and Dis3 ability Fund in accordance with paragraph (2), from

4 the Federal Old-Age and Survivors Insurance Trust

5 Fund, the Federal Disability Insurance Trust Fund,

6 and the general fund in the Treasury, such sums as

7 the Director of the Office of Personnel Management

8 deems necessary for any fiscal year and so certifies

9 to the Managing Trustee of the Trust Funds, on ac10 count of—

11 (A) any annuities or survivor annuities

12 which are paid or are to be paid during such

13 fiscal year from such Retirement and Disability

14 Fund under subchapter II, IV, or V of chapter

15 84 of title 5 of the United States Code and

16 which are payable, or the amount of which is

17 increased, by reason of the inclusion and credit18 ing (for Federal retirement or disability pur19 poses) of State service under subsection (c)

20 (and the amendments made by subsection (k)),

21 (B) the additional administrative expenses

22 resulting or expected to result therefrom, and

23 (C) any loss of interest to such Retirement

24 and Disability Fund resulting from the pay25 ment of such annuities,
16

•HR 3487 IH

1 in order to place such Retirement and Disability

2 Fund in the same position at the end of such fiscal

3 year as the position in which it would have been if

4 such subsection (c) (and the amendments made by

5 subsection (k)) had not been enacted. In carrying

6 out the preceding provisions of this paragraph, any

7 amounts paid into such Retirement and Disability

8 Fund under subsection (c)(2)(B) shall be taken into

9 account.

10 (2) SOURCE DISTRIBUTION OF TRANSFERRED

11 FUNDS.—The sums required to be transferred to the

12 Civil Service Retirement and Disability Fund under

13 paragraph (1) for any fiscal year shall be taken—

14 (A) from the Federal Old-Age and Survi15 vors Insurance Trust Fund to the extent that

16 (as determined by the Secretary of Health and

17 Human Services and so certified to the Manag18 ing Trustee of the Trust Fund) the claims con19 sidered in the exercise of the disability deter20 mination function during that fiscal year by the

21 Secretary (pursuant to his or her assumption of

22 such function from the various States under

23 section 221(b)(1) of the Social Security Act) in24 volve benefits which are or would be payable

25 from that Fund;
17

•HR 3487 IH

1 (B) from the Federal Disability Insurance

2 Trust Fund to the extent that (as so deter3 mined and so certified to the Managing Trustee

4 of the Trust Fund) the claims considered in the

5 exercise of the disability determination function

6 during that fiscal year by the Secretary (pursu7 ant to his or her assumption of such function

8 from the various States under such section

9 221(b)(1)) involve benefits which are or would

10 be payable from that Fund; and

11 (C) from funds appropriated from the gen12 eral fund in the Treasury (and the appropria13 tion of such funds is hereby authorized) to the

14 extent that (as so determined and so certified

15 to the Secretary of the Treasury) the claims

16 considered in the exercise of the disability de17 termination function during that fiscal year by

18 the Secretary of Health and Human Services

19 (pursuant to his or her assumption of such

20 function from the various States under such

21 section 221(b)(1)) involve benefits which are or

22 would be payable under title XVI of such Act.

23 (k) AMENDMENTS TO FEDERAL EMPLOYEES’ RE24 TIREMENT PROVISIONS IN CHAPTER 84 OF TITLE 5,

25 UNITED STATES CODE.—
18

•HR 3487 IH

1 (1) DEFINITION OF CREDITABLE SERVICE.—

2 Section 8411(b) of title 5, United States Code, is

3 amended—

4 (A) by striking ‘‘and’’ at the end of para5 graph (3);

6 (B) by striking the period at the end of

7 paragraph (4) and inserting ‘‘; and’’; and

8 (C) by inserting after paragraph (4) the

9 following new paragraph:

10 ‘‘(5) for an individual who becomes an employee

11 pursuant to section 102(c)(1) of the Social Security

12 Procedural Improvements Act of 1993, service per13 formed for the State by which the individual was

14 employed on the day before the effective date of the

15 conversion of the individual’s position under section

16 102(a) of such Act (to the extent that such service

17 was performed before the effective date of the con18 version), subject to section 102(c)(2)(B) of such Act,

19 and only if that service is or would (but for the So20 cial Security Procedural Improvements Act of 1993,

21 and disregarding any refund described in section

22 102(c)(2)(B) of such Act) be creditable under an

23 employee retirement system of (or plan sponsored

24 by) such State.’’.
19

•HR 3487 IH

1 (2) SERVICE FOR WHICH DEPOSITS NOT RE2 QUIRED.—Section 8422 of title 5, United States

3 Code, is amended by adding at the end the follow4 ing:

5 ‘‘(f) Except as provided in section 102(c)(2)(B) of the

6 Social Security Procedural Improvements Act of 1993, de7 posit may not be required for any service described in sec8 tion 8411(b)(5) of this title.’’.

9 (3) ADJUSTMENT OF ANNUITY TO ACCOUNT

10 FOR STATE RETIREMENT BENEFITS.—

11 (A) IN GENERAL.—Title 5, United States

12 Code, is amended by inserting after section

13 8470 the following new section:

14 ‘‘§ 8470a. Offset relating to certain State retirement

15 benefits

16 ‘‘(a)(1) Subject to paragraph (2), in computing an

17 annuity under subchapter II or V of this chapter based

18 in whole or in part on an individual’s service described

19 in section 8411(b)(5) of this title, the amount of the annu20 ity (as otherwise so computed) shall be reduced by an

21 amount equal to the amount of any retirement benefits

22 payable by a State to or with respect to such individual

23 on the basis of that service.

24 ‘‘(2) In no event shall the application of paragraph

25 (1) result in the reduction of an annuity by an amount
20

•HR 3487 IH

1 greater than that portion of the annuity which is attrib2 utable to service described in section 8411(b)(5).

3 ‘‘(b) Any survivor annuity under subchapter IV of

4 this chapter which is computed based on the annuity of

5 an individual which is subject to reduction under sub6 section (a) of this section shall be computed based on the

7 annuity of such individual after such reduction.

8 ‘‘(c) The Office of Personnel Management shall pre9 scribe such regulations as may be necessary to carry out

10 this section.’’.

11 (B) CHAPTER ANALYSIS.—The analysis for

12 chapter 84 of title 5, United States Code, is

13 amended by inserting after the item relating to

14 section 8470 the following new item:

‘‘8470a. Offset relating to certain State retirement benefits.’’.

15 (l) AMENDMENTS TO THE SOCIAL SECURITY ACT

16 AND THE INTERNAL REVENUE CODE OF 1986.—

17 (1) SERVICE TREATED AS EMPLOYMENT UNDER

18 TITLE II OF THE SOCIAL SECURITY ACT.—Section

19 210(a)(5) of the Social Security Act (42 U.S.C.

20 410(a)(5)) is amended by adding at the end the fol21 lowing:

22 ‘‘and except that, in the case of an individual serving

23 in a position as of the day before the effective date

24 of a conversion of such position under section 102(a)

25 of the Social Security Procedural Improvements Act
21

•HR 3487 IH

1 of 1993, if the service performed by such individual

2 in such position did not as of such day constitute

3 employment within the meaning of this subsection,

4 service performed by such individual on or after

5 such effective date in the employ of the United

6 States or any instrumentality of the United States

7 shall be treated as service described in this para8 graph until a break in continuous performance of

9 such service (within the meaning of ‘continuous’ pro10 vided by clause (i) of subparagraph (B));’’.

11 (2) SERVICE TREATED AS EMPLOYMENT UNDER

12 FICA.—Paragraph (5) of section 3121(b) of the In13 ternal Revenue Code of 1986 (relating to definition

14 of employment) is amended by adding at the end the

15 following:

16 ‘‘and except that, in the case of an individual serving

17 in a position as of the day before the effective date

18 of a conversion of such position under section 102(a)

19 of the Social Security Procedural Improvements Act

20 of 1993, if the service performed by such individual

21 in such position did not as of such day constitute

22 employment within the meaning of this subsection,

23 service performed by such individual on or after

24 such effective date in the employ of the United

25 States or any instrumentality of the United States
22

•HR 3487 IH

1 shall be treated as service described in this para2 graph until a break in continuous performance of

3 such service (within the meaning of ‘continuous’ pro4 vided by clause (i) of subparagraph (B));’’.

5 SEC. 103. REQUIREMENT OF FULLY-INSURED STATUS OF

6 WORKER FOR ENTITLEMENT TO CHILD’S OR

7 PARENT’S INSURANCE BENEFITS.

8 (a) CHILD’S INSURANCE BENEFITS.—Section 202(d)

9 of the Social Security Act (42 U.S.C. 402(d)) is amend10 ed—

11 (1) in paragraph (1), by striking ‘‘fully or cur12 rently insured’’ and inserting ‘‘fully insured’’; and

13 (2) in paragraph (3), by striking ‘‘fully or cur14 rently insured’’ in the matter following subpara15 graph (B) and inserting ‘‘fully insured’’.

16 (b) MOTHER’S AND FATHER’S INSURANCE BENE17 FITS.—Section 202(g)(1) of such Act (42 U.S.C.

18 402(g)(1)) is amended by striking ‘‘fully or currently in19 sured’’ and inserting ‘‘fully insured’’.

20 (c) LUMP-SUM DEATH PAYMENTS.—Section 202(i)

21 of such Act (42 U.S.C. 402(i)) is amended by striking

22 ‘‘fully or currently insured’’ and inserting ‘‘fully insured’’.

23 (d) CONFORMING AMENDMENTS.—Section 216(h) of

24 such Act (42 U.S.C. 416(h)) is amended by striking ‘‘fully
23

•HR 3487 IH

1 or currently insured’’ each place it appears and inserting

2 ‘‘fully insured’’.

3 SEC. 104. REPORT REGARDING DEMONSTRATION

4 PROJECTS PILOTING CASE MANAGEMENT

5 TECHNIQUES.

6 Not later than December 31, 1995, the Secretary of

7 Health and Human Services shall submit a report to the

8 Committee on Ways and Means of the House of Rep9 resentatives and the Committee on Finance of the Senate

10 regarding the 4 demonstration projects conducted under

11 the authority of section 505(a) of the Social Security Dis12 ability Amendments of 1980 which currently pilot case

13 management techniques in the disability insurance pro14 gram under title II of the Social Security Act. Such report

15 shall contain a comprehensive assessment of the results

16 obtained under such projects, together with recommenda17 tions of the Secretary for facilitating case management

services for not more than 331 18 ⁄3 percent of all beneficiaries

19 under such program by not later than December 31, 1997,

20 and for not more than 50 percent of such beneficiaries

21 by not later than December 31, 1999, and such proposals

22 for legislative changes as may be necessary and appro23 priate to carry out such recommendations.
24

•HR 3487 IH

1 SEC. 105. EFFECTIVE DATES.

2 The amendments made by sections 101 and 102 shall

3 take effect on the date of the enactment of this Act. The

4 amendments made by section 103 shall apply with respect

5 to deaths occurring after December 31, 1993.

6 TITLE II—ESTABLISHMENT OF SOCIAL SECU7 RITY COURT AND ABOLITION OF APPEALS

8 COUNCIL

9 SEC. 201. ENTITLEMENT TO JUDICIAL REVIEW.

10 Section 205(g) of the Social Security Act (42 U.S.C.

11 405(g)) is amended to read as follows:

12 ‘‘(g)(1) Any individual, after any final decision of the

13 Secretary made after a hearing to which he was a party

14 (under subsection (b) or under any other provision of this

15 Act which authorizes a hearing in the same manner or

16 to the same extent as is provided in such subsection), irre17 spective of the amount in controversy, may obtain a review

18 of such decision by a civil action brought in the Social

19 Security Court and commenced within 60 days after the

20 mailing to him of notice of such decision or within such

21 further time as the Secretary may allow.

22 ‘‘(2) As part of his answer in an action brought by

23 an individual for the review of the decision in the Social

24 Security Court, the Secretary shall file a certified copy of

25 the transcript of the record including the evidence upon

26 which the findings and decision complained of are based.
25

•HR 3487 IH

1 The Social Security Court shall have power to enter, upon

2 the pleadings and transcript of the record, a judgment af3 firming, modifying, or reversing the decision. The findings

4 as to any fact, if supported by substantial evidence, shall

5 be conclusive; and where the claim was denied by the Sec6 retary or the decision rendered under subsection (b) of

7 this section or subsection (d) of section 221 was adverse

8 to any individual who was a party to the proceedings held

9 under that subsection, because of the failure of the claim10 ant or such individual to submit proof in conformity with

11 any regulation made or adopted under subsection (a), the

12 Court shall review only the question of conformity with

13 such regulations and the validity of such regulations.

14 ‘‘(3) The Social Security Court may, on motion of

15 the Secretary for good cause shown before he files his an16 swer, remand the case for further action by an administra17 tive law judge. The Court may also, at any time, order

18 additional evidence to be taken before an administrative

19 law judge on a showing that there is new material evidence

20 and that there is good cause for the failure to incorporate

21 it into the record of the prior proceeding.

22 ‘‘(4) The claimant and the Secretary shall be parties

23 to the proceeding before an administrative law judge in

24 any case remanded from the Social Security Court. The

25 administrative law judge shall file with the Court his deci-
26

•HR 3487 IH

1 sion and any additional or modified findings of fact result2 ing from the proceeding, which shall be reviewable only

3 to the same extent as the original decision and findings.

4 The filing shall include a transcript of the additional

5 record on which the modification or affirmance of the

6 original decision and findings was based.

7 ‘‘(5) The judgment of the Social Security Court shall

8 be final except that it shall be subject to review as pro9 vided in section 712(g).

10 ‘‘(6) Any action instituted in accordance with this

11 subsection shall survive notwithstanding any change in the

12 person occupying the office of Secretary or any vacancy

13 in such office.’’.

14 SEC. 202. SOCIAL SECURITY COURT.

15 (a) IN GENERAL.—Title VII of the Social Security

16 Act is amended by inserting after section 711 (42 U.S.C.

17 912) the following new section:

18 ‘‘SOCIAL SECURITY COURT

19 ‘‘Establishment

20 ‘‘SEC. 712. (a) There is hereby established a court

21 of record to be known as the Social Security Court.

22 ‘‘Jurisdiction

23 ‘‘(b) The Social Security Court (and its divisions es24 tablished under subsection (d)(1)) shall have exclusive ju25 risdiction, in actions brought as described in section
27

•HR 3487 IH

1 205(g), to review decisions rendered under sections 205(b)

2 and 221(d), final determinations made under section

3 1631(c)(3), and final decisions rendered under sections

4 1128(f), 1155, 1156(b)(4), 1866(h)(1), 1869(b)(1),

5 1876(c)(5)(B), 1881(g)(3), and 1910(b)(2) and shall have

6 exclusive jurisdiction in all other cases and proceedings

7 arising under titles II, XVI, and XVIII and in all cases

8 and proceedings involving the validity or administration

9 of such titles, regardless of the form or manner in which

10 such cases and proceedings are brought.

11 ‘‘Judges

12 ‘‘(c)(1) The Social Security Court shall be composed

13 of 20 judges, appointed by the President, by and with the

14 advice and consent of the Senate, solely on the grounds

15 of fitness to perform the duties of the office. The Presi16 dent shall appoint one of the judges of the Court as its

17 chief judge.

18 ‘‘(2) The chief judge of the Social Security Court

19 shall receive a salary at the same rate and in the same

20 installments as judges of the district courts of the United

21 States; and the other judges of the Court shall receive a

22 salary at the rate provided for positions in level V of the

23 Executive Schedule (5 U.S.C. 5316).

24 ‘‘(3) Judges of the Social Security Court shall receive

25 necessary traveling expenses, and expenses actually in-
28

•HR 3487 IH

1 curred for subsistence while traveling on duty and away

2 from their designated stations, subject to the same limita3 tions on amount as are now or may hereafter be applicable

4 to the United States Customs Court.

5 ‘‘(4) The term of office of any judge of the Social

6 Security Court shall expire 10 years after he takes office.

7 ‘‘(5)(A) A judge of the Social Security Court may be

8 removed by the President, but only during the term for

9 which such judge is appointed and only for incompetency,

10 misconduct, neglect of duty, engaging in the practice of

11 law, or physical or mental disability.

12 ‘‘(B) Before any order of removal may be entered,

13 a full specification of the charges shall be furnished to the

14 judge involved, and the judge shall be accorded an oppor15 tunity to be heard on the charges.

16 ‘‘(C) Any cause for removal of any judge of the Social

17 Security Court coming to the knowledge of the Director

18 of the Administrative Office of the United States Courts

19 shall be reported by him to the President, and a copy of

20 the report shall at the same time be transmitted to the

21 judge.

22 ‘‘(D) A judge removed from office under this section

23 shall not be permitted at any time to practice before the

24 Social Security Court.
29

•HR 3487 IH

1 ‘‘Organizational Matters

2 ‘‘(d)(1) In order that cases may be heard throughout

3 the United States in a manner which will promote the ob4 jective specified in paragraph (3), the chief judge may

5 from time to time divide the Social Security Court into

6 divisions of one or more judges, assign the judges of the

7 Court thereto, and, in the case of a division of more than

8 one judge, designate a chief thereof. If a division, as a

9 result of a vacancy or the absence or inability of a judge

10 assigned thereto, is composed of less than the number of

11 judges designated for the division, the chief judge may as12 sign other judges to the division or direct the division to

13 proceed with the transaction of business without awaiting

14 any additional assignment of judges thereto.

15 ‘‘(2) The Social Security Court or any of its divisions

16 may sit at any place within the United States.

17 ‘‘(3) The times and places of the sessions of the So18 cial Security Court and of its divisions shall be prescribed

19 by the chief judge with the objective of securing reasonable

20 opportunity to claimants to appear before the Court or

21 any of its divisions with as little inconvenience and

22 expense as is practicable.

23 ‘‘Procedural Matters

24 ‘‘(e)(1) A majority of the judges of the Social Secu25 rity Court or of any division thereof shall constitute a
30

•HR 3487 IH

1 quorum for the transaction of the business of the Court

2 or of such division, respectively. A vacancy in the Social

3 Security Court or in any division thereof shall not impair

4 the powers or affect the duties of the Court or such divi5 sion or of the remaining judges of the Court or such divi6 sion, respectively.

7 ‘‘(2) The proceedings of the Social Security Court

8 and its divisions shall be conducted in accordance with

9 such rules of practice and procedure as the Court may

10 prescribe. The rules of practice and procedure prescribed

11 by the Court under the preceding sentence may provide

12 for the imposition of fees for the filing of petitions, but

13 any such fee may be waived by the Court in any case upon

14 a determination that the imposition of such fee would

15 cause hardship to the claimant. The rules of practice and

16 procedure so prescribed may also specify qualifications for

17 persons representing claimants, but no qualified person

18 may be denied admission to practice before the Court be19 cause of his failure to be a member of any profession or

20 calling.

21 ‘‘(3) The mailing by certified mail or registered mail

22 of any pleading, decision, order, notice, or process in re23 spect of proceedings before the Social Security Court shall

24 be held sufficient service of such pleading, decision, order,

25 notice, or process.
31

•HR 3487 IH

1 ‘‘(4) The chief judge may from time to time appoint

2 commissioners, in sufficient numbers to meet the needs

3 of the Social Security Court, who shall proceed under such

4 rules and regulations as may be promulgated by the Court.

5 Each commissioner shall receive the same compensation

6 and travel and subsistence allowances provided by law for

7 commissioners of the United States Court of Claims.

8 ‘‘(5) The Social Security Court and each division

9 thereof shall have power to punish by fine or imprison10 ment, at its discretion, any contempt of its authority in

11 the form of—

12 ‘‘(A) misbehavior of any person in its presence

13 or so near thereto as to obstruct the

14 administration of justice;

15 ‘‘(B) misbehavior of any of its officers in their

16 official transactions; or

17 ‘‘(C) disobedience or resistance to its lawful

18 writ, process, order, rule, decree, or command.

19 It shall have such assistance in the carrying out of its law20 ful writ, process, order, rule, decree, or command as is

21 available to a court of the United States.

22 ‘‘(6) Notice and opportunity to be heard upon any

23 proceeding in the Social Security Court or any division

24 thereof shall be given to the claimant and the Secretary.

25 If an opportunity to be heard upon the proceeding is given
32

•HR 3487 IH

1 before a division of the Court, neither the claimant nor

2 the Secretary shall be entitled to notice and opportunity

3 to be heard before the Court upon review, except upon

4 a specific order of the chief judge. Hearings before the

5 Social Security Court and its divisions shall be open to

6 the public, and the proceedings shall be stenographically

7 reported. The Court is authorized to contract (by renewal

8 of contract or otherwise) for the reporting of such proceed9 ings, and in any such contract to fix the terms and condi10 tions under which transcripts will be supplied by the con11 tractor to the Court and to other persons and agencies.

12 ‘‘(7) A decision in any proceeding in the Social Secu13 rity Court or a division thereof shall be rendered as quick14 ly as practicable. The decision made (and any order grant15 ed pursuant thereto) shall, when entered, be the decision

16 (and order) of the Social Security Court, except as other17 wise provided in paragraph (8). It shall be the duty of

18 the Court and of each division to render its decision in

19 writing.

20 ‘‘(8) A division shall hear, and make a written deci21 sion upon, any proceeding instituted before the Social Se22 curity Court (including any motion in connection there23 with) which is assigned to such division by the chief judge,

24 and such decision shall constitute its final disposition of

25 the proceeding. The decision of the division shall become
33

•HR 3487 IH

1 the decision of the Court within 60 days after such deci2 sion by the division, unless (A) within such period a party

3 to the proceedings has petitioned the chief judge for direct

4 review of the decision and (before or after the expiration

5 of such period) the chief judge has granted such petition,

6 or (B) within such period the chief judge on his own mo7 tion has directed that such decision shall be reviewed by

8 the Court. The chief judge may provide that any such re9 view be conducted by the Court itself en banc or may as10 sign the decision to be reviewed to a panel consisting of

11 at least three judges of the Court (not including any judge

12 who was a member of the division which made the deci13 sion); and any order or decision made by such a panel

14 upon such a review shall be the decision of the Social Secu15 rity Court.

16 ‘‘(9)(A) All proceedings, decisions, and orders of the

17 Social Security Court and its divisions, including a tran18 script of the stenographic report of the proceedings, shall

19 be public records open to the inspection of the public.

20 ‘‘(B) The Social Security Court shall provide for the

21 publication at the Government Printing Office of any of

22 its decisions which the chief judge determines will or may

23 serve as precedents in subsequent cases, in such form and

24 manner as may be best adapted for public information and

25 use, and such authorized publication shall be competent
34

•HR 3487 IH

1 evidence of the decisions of the Social Security Court

2 therein contained in all courts of the United States and

3 of the several States without any further proof of authen4 tication thereof. Such decision shall be subject to sale in

5 the same manner and upon the same terms as other public

6 documents.

7 ‘‘(10) The Social Security Court shall have a seal

8 which shall be judicially noticed.

9 ‘‘Administrative Matters

10 ‘‘(f)(1) The Social Security Court is authorized to ap11 point, in accordance with the provisions of title 5, United

12 States Code, governing appointments in the competitive

13 service, and to fix the basic pay of, in accordance with

14 chapter 51 and subchapter III of chapter 53 of such title,

15 such employees as may be necessary efficiently and effec16 tively to execute the functions vested in the Court.

17 ‘‘(2) The employees of the Social Security Court shall

18 receive their necessary traveling expenses, and expenses

19 for subsistence while traveling on duty and away from

20 their designated stations, as provided in chapter 57 of title

21 5, United States Code.

22 ‘‘(3) The Social Security Court is authorized to make

23 such expenditures (including expenditures for personal

24 services and rent at the seat of government and elsewhere,

25 and for lawbooks, books of reference, and periodicals) as
35

•HR 3487 IH

1 may be necessary to execute efficiently the functions vest2 ed in the Court. All expenditures of the Court shall be

3 allowed and paid, out of any moneys appropriated for pur4 poses of the Court, upon presentation of itemized vouchers

5 therefor signed by the certifying officer designated by the

6 chief judge.

7 ‘‘(4) All fees received by the Social Security Court

8 shall be covered into the Treasury as miscellaneous re9 ceipts.

10 ‘‘(5) The Social Security Court is authorized to fix

11 and impose a fee, not in excess of the fee fixed by law

12 to be charged and collected therefor by the clerks of the

13 district courts, for comparing, or for preparing and com14 paring, a transcript of the record, or for copying any

15 record, entry, or other paper and the comparison and cer16 tification thereof; except that any fee so fixed may be

17 waived by the Court in any case upon a determination that

18 the imposition of such a fee would cause hardship to a

19 claimant.

20 ‘‘Appeals From the Court

21 ‘‘(g) The United States Court of Appeals for the Fed22 eral Circuit shall have exclusive jurisdiction to review the

23 decisions of the Social Security Court upon appeal by ei24 ther the Secretary or the claimant; but a party may not

25 apply to the court of appeals for leave to appeal such a
36

•HR 3487 IH

1 decision unless such decision was made or reviewed by the

2 Social Security Court en banc or reviewed by a panel de3 scribed in subsection (e)(8), or was the subject of a peti4 tion under subsection (e)(8) for review by the Social Secu5 rity Court en banc and such petition was denied. Any such

6 appeal to the court of appeals shall be subject to the same

7 provisions, conditions, and requirements (including fur8 ther review by the United States Supreme Court in ac9 cordance with section 1254 of title 28, United States

10 Code) as an appeal from a final decision of a district court

11 of the United States under chapter 83 of such title 28.

12 ‘‘Retirement of Judges

13 ‘‘(h) Judges of the Social Security Court shall retire

14 and be entitled to retired pay, and widows and dependent

15 children of such judges shall be entitled to annuities, in

16 the same manner and subject to the same provisions, con17 ditions, and requirements as judges of the United States

18 Tax Court (and their widows and dependent children)

19 under sections 7447 and 7448 of the Internal Revenue

20 Code of 1986. The chief judge of the Social Security Court

21 first appointed, in consultation with the Office of Person22 nel Management, shall within 120 days after such appoint23 ment submit to the President and the Congress his rec24 ommendations for appropriate legislative and administra-
37

•HR 3487 IH

1 tive action to implement the retirement system established

2 by the preceding sentence.

3 ‘‘Availability of Trust Funds and Authorization of

4 Appropriations

5 ‘‘(i)(1) The expenses of the Social Security Court

6 shall be paid—

7 ‘‘(A) from the Federal Old-Age and Survivors

8 Insurance Trust Fund to the extent that such ex9 penses are attributable to cases involving claims

10 which are or would be payable from that Fund;

11 ‘‘(B) from the Federal Disability Insurance

12 Trust Fund to the extent that such expenses are at13 tributable to cases involving claims which are or

14 would be payable from that Fund;

15 ‘‘(C) from the Federal Hospital Insurance

16 Trust Fund to the extent that such expenses are at17 tributable to cases involving claims which are or

18 would be payable from that Fund; and

19 ‘‘(D) from funds appropriated for purposes of

20 this section (and the appropriation of such funds is

21 hereby authorized) to the extent that such expenses

22 are attributable to (i) cases involving claims which

23 are or would be payable under title XVI or (ii) other

24 cases or proceedings not involving the payment of

25 specific claims from any of such Trust Funds.
38

•HR 3487 IH

1 ‘‘(2) Payments to the Social Security Court from the

2 Trust Funds specified in subparagraphs (A), (B), and (C)

3 of paragraph (1) shall be made on the first day of each

4 calendar quarter, on the basis of estimates (by the Manag5 ing Trustee of such Funds) of the amount of the expenses

6 to be incurred by the Court during that quarter which are

7 attributable to cases within each of the categories de8 scribed in such subparagraphs; and proper adjustments

9 shall be made in subsequent payments to the Court under

10 this subsection to the extent that prior estimates (with re11 spect to cases within any such category) were in excess

12 of or were less than they should have been.’’.

13 (b) CONFORMING AMENDMENTS.—

14 (1)(A) Section 205(c)(8) of such Act (42

15 U.S.C. 405(c)(8)) is amended by striking ‘‘the Unit16 ed States district court’’ and inserting ‘‘the Social

17 Security Court,’’.

18 (B) Section 221(d) of such Act (42 U.S.C.

19 421(d)) is amended by striking ‘‘judicial review of

20 the Secretary’s final decision’’ and inserting ‘‘review

21 of the Secretary’s final decision in the Social Secu22 rity Court’’.

23 (C) Sections 1128(f), 1155, and 1156(b)(4) of

24 such Act (42 U.S.C. 1320a–7(f), 1320c–4, and

25 1320c–5(b)(4)) are each amended by striking ‘‘judi-
39

•HR 3487 IH

1 cial review of the Secretary’s final decision’’ and in2 serting ‘‘review of the Secretary’s final decision in

3 the Social Security Court’’.

4 (D) Section 1631(c)(3) of such Act (42 U.S.C.

5 1383(c)(3)) is amended by striking ‘‘judicial review’’

6 and inserting ‘‘review in the Social Security Court’’.

7 (E) Sections 1866(h)(1), 1869(b)(1),

8 1876(c)(5)(B), 1881(g)(3), and 1910(b)(2) of such

9 Act (42 U.S.C. 1395cc(h)(1), 1395ff(b)(1),

10 1395mm(c)(5)(B), 1395rr(g)(3), and 1396i(b)(2))

11 are each amended by striking ‘‘judicial review of the

12 Secretary’s final decision’’ and inserting ‘‘review of

13 the Secretary’s final decision in the Social Security

14 Court’’.

15 (2)(A) Section 201(h) of such Act (42 U.S.C.

16 401(h)) is amended—

17 (i) by inserting ‘‘along with expenditures

18 for any related expenses of the Social Security

19 Court with respect to cases involving claims for

20 such payments as described in section

21 712(i)(1)(B),’’ immediately before ‘‘shall be

22 made’’ in the first sentence; and

23 (ii) by inserting ‘‘, along with expenditures

24 for any related expenses of the Social Security

25 Court with respect to cases involving claims for
40

•HR 3487 IH

1 such payments as described in section

2 712(i)(1)(A),’’ immediately before ‘‘shall be

3 made’’ in the second sentence.

4 (B) Section 1817(h) of such Act (42 U.S.C.

5 1395i(h)) is amended by inserting before the period

6 at the end the following: ‘‘, and such amounts as are

7 necessary to pay the expenses of the Social Security

8 Court with respect to cases involving claims for pay9 ments under this part as described in section

10 712(i)(1)(C)’’.

11 SEC. 203. ABOLITION OF APPEALS COUNCIL.

12 (a) ABOLITION OF THE APPEALS COUNCIL.—The

13 Appeals Council in the Department of Health and Human

14 Services is abolished.

15 (b) CONTINUED AUTHORITY OF SECRETARY.—Noth16 ing in subsection (a) shall be construed to limit to any

17 extent the authority of the Secretary of Health and

18 Human Services under the Social Security Act to hold

19 such hearings and to conduct such investigations and

20 other proceedings as he or she may deem necessary or

21 proper for the administration of such Act.

22 SEC. 204. EFFECTIVE DATE AND TRANSITIONAL RULES.

23 (a) EFFECTIVE DATE.—The provisions of this title

24 relating to the establishment and constitution of the Social

25 Security Court shall be effective on the date of the enact-
41

•HR 3487 IH

1 ment of this Act; but the amendments made by this title

2 relating to decisions rendered and determinations made on

3 claims under titles II, XVI, and XVIII of the Social Secu4 rity Act (including the abolition of the Appeals Council

5 under section 203) shall apply only in the case of decisions

6 rendered and determinations made one year or more after

7 such date.

8 (b) EXPEDITED PROCEDURES DURING ONE-YEAR

9 TRANSITIONAL PERIOD.—During the one-year period be10 ginning on the date of the enactment of this Act, the pro11 ceedings held in the district courts of the United States

12 in cases involving final decisions of the Secretary rendered

13 and final determinations of the Secretary made on claims

14 under titles II, XVI, and XVIII of the Social Security Act

15 shall be preferred cases and shall be expedited in every

16 way.

17 (c) TRANSFER OF CASES FROM APPEALS COUNCIL

18 TO SOCIAL SECURITY COURT.—Cases pending before the

19 Appeals Council in the Department of Health and Human

20 Services at the expiration of the one-year period beginning

21 on the date of the enactment of this Act shall be trans22 ferred to the Social Security Court and shall be deemed

23 to have been timely filed in such Court; but the claimant

24 in any such case shall have the right to withdraw the case

25 from such Court at any time.
42

•HR 3487 IH

Æ

HR 3487 IH——2

HR 3487 IH——3

HR 3487 IH——4