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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1470 Introduced in Senate (IS)]

104th CONGRESS
  1st Session
                                S. 1470

 To amend title II of the Social Security Act to provide for increases 
in the amounts of allowable earnings under the social security earnings 
 limit for individuals who have attained retirement age, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           December 12, 1995

    Mr. McCain (for himself, Mr. Roth, and Mr. Dole) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL

 
 To amend title II of the Social Security Act to provide for increases 
in the amounts of allowable earnings under the social security earnings 
 limit for individuals who have attained retirement age, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Senior Citizens' Freedom to Work Act 
of 1995''.

SEC. 2. INCREASES IN MONTHLY EXEMPT AMOUNT FOR PURPOSES OF THE SOCIAL 
              SECURITY EARNINGS LIMIT.

    (a) Increase in Monthly Exempt Amount for Individuals Who Have 
Attained Retirement Age.--Section 203(f)(8)(D) of the Social Security 
Act (42 U.S.C. 403(f)(8)(D)) is amended to read as follows:
            ``(D) Notwithstanding any other provision of this 
        subsection, the exempt amount which is applicable to an 
        individual who has attained retirement age (as defined in 
        section 216(l)) before the close of the taxable year involved 
        shall be--
                    ``(i) for each month of any taxable year ending 
                after 1995 and before 1997, $1,166.66\2/3\,
                    ``(ii) for each month of any taxable year ending 
                after 1996 and before 1998, $1,250.00,
                    ``(iii) for each month of any taxable year ending 
                after 1997 and before 1999, $1,333.33\1/3\,
                    ``(iv) for each month of any taxable year ending 
                after 1998 and before 2000, $1,416.66\2/3\,
                    ``(v) for each month of any taxable year ending 
                after 1999 and before 2001, $1,500.00,
                    ``(vi) for each month of any taxable year ending 
                after 2000 and before 2002, $2,083.33\1/3\, and
                    ``(vii) for each month of any taxable year ending 
                after 2001 and before 2003, $2,500.00.''.
    (b) Conforming Amendments.--
            (1) Section 203(f)(8)(B)(ii) of such Act (42 U.S.C. 
        403(f)(8)(B)(ii)) is amended--
                    (A) by striking ``the taxable year ending after 
                1993 and before 1995'' and inserting ``the taxable year 
                ending after 2001 and before 2003 (with respect to 
                individuals described in subparagraph (D)) or the 
                taxable year ending after 1993 and before 1995 (with 
                respect to other individuals)''; and
                    (B) in subclause (II), by striking ``for 1992'' and 
                inserting ``for 2000 (with respect to individuals 
                described in subparagraph (D)) or 1992 (with respect to 
                other individuals)''.
            (2) The second sentence of section 223(d)(4)(A) of such Act 
        (42 U.S.C. 423(d)(4)(A)) is amended by striking ``the exempt 
        amount under section 203(f)(8) which is applicable to 
        individuals described in subparagraph (D) thereof'' and 
        inserting the following: ``an amount equal to the exempt amount 
which would be applicable under section 203(f)(8), to individuals 
described in subparagraph (D) thereof, if section 2 of the Senior 
Citizens' Right to Work Act of 1995 had not been enacted''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to taxable years ending after 1995.

SEC. 3. DENIAL OF DISABILITY BENEFITS TO DRUG ADDICTS AND ALCOHOLICS.

    (a) Amendments Relating to Title II Disability Benefits.--
            (1) In general.--Section 223(d)(2) of the Social Security 
        Act (42 U.S.C. 423(d)(2)) is amended by adding at the end the 
        following:
            ``(C) An individual shall not be considered to be disabled 
        for purposes of this title if alcoholism or drug addiction 
        would (but for this subparagraph) be a contributing factor 
        material to the Commissioner's determination that the 
        individual is disabled.''.
            (2) Representative payee requirements.--
                    (A) Section 205(j)(1)(B) of such Act (42 U.S.C. 
                405(j)(1)(B)) is amended to read as follows:
    ``(B) In the case of an individual entitled to benefits based on 
disability, the payment of such benefits shall be made to a 
representative payee if the Commissioner of Social Security determines 
that such payment would serve the interest of the individual because 
the individual also has an alcoholism or drug addiction condition (as 
determined by the Commissioner) that prevents the individual from 
managing such benefits.''.
                    (B) Section 205(j)(2)(C)(v) of such Act (42 U.S.C. 
                405(j)(2)(C)(v)) is amended by striking ``entitled to 
                benefits'' and all that follows through ``under a 
                disability'' and inserting ``described in paragraph 
                (1)(B)''.
                    (C) Section 205(j)(2)(D)(ii)(II) of such Act (42 
                U.S.C. 405(j)(2)(D)(ii)(II)) is amended by striking all 
                that follows ``15 years, or'' and inserting ``described 
                in paragraph (1)(B).''.
                    (D) Section 205(j)(4)(A)(i)(II) (42 U.S.C. 
                405(j)(4)(A)(ii)(II)) is amended by striking ``entitled 
                to benefits'' and all that follows through ``under a 
                disability'' and inserting ``described in paragraph 
                (1)(B)''.
            (3) Treatment referrals for individuals with an alcoholism 
        or drug addiction condition.--Section 222 of such Act (42 
        U.S.C. 422) is amended by adding at the end the following new 
        subsection:

   ``Treatment Referrals for Individuals with an Alcoholism or Drug 
                          Addiction Condition

    ``(e) In the case of any individual whose benefits under this title 
are paid to a representative payee pursuant to section 205(j)(1)(B), 
the Commissioner of Social Security shall refer such individual to the 
appropriate State agency administering the State plan for substance 
abuse treatment services approved under subpart II of part B of title 
XIX of the Public Health Service Act (42 U.S.C. 300x-21 et seq.).''.
            (4) Conforming amendment.--Subsection (c) of section 225 of 
        such Act (42 U.S.C. 425(c)) is repealed.
            (5) Effective dates.--
                    (A) The amendments made by paragraphs (1) and (4) 
                shall apply to any individual who applies for, or whose 
                claim is adjudicated with respect to, benefits under 
                title II of the Social Security Act based on disability 
                on or after the date of the enactment of this Act, and, 
                in the case of any individual who has applied for, and 
                whose claim has been adjudicated with respect to, such 
                benefits before such date of enactment, such amendments 
                shall apply only with respect to such benefits for 
                months beginning on or after January 1, 1997.
                    (B) The amendments made by paragraphs (2) and (3) 
                shall apply with respect to benefits for which 
                applications are filed on or after the date of the 
                enactment of this Act.
                    (C) If an individual who is entitled to monthly 
                insurance benefits under title II of the Social 
                Security Act based on disability for the month in which 
                this Act is enacted and whose entitlement to such 
                benefits would terminate by reason of the amendments 
                made by this subsection reapplies for benefits under 
                title II of such Act (as amended by this Act) based on 
                disability within 120 days after the date of the 
                enactment of this Act, the Commissioner of Social 
                Security shall, not later than January 1, 1997, 
                complete the entitlement redetermination with respect 
                to such individual pursuant to the procedures of such 
                title.
    (b) Amendments Relating to SSI Benefits.--
            (1) In general.--Section 1614(a)(3) of the Social Security 
        Act (42 U.S.C. 1382c(a)(3)) is amended by adding at the end the 
        following:
    ``(I) Notwithstanding subparagraph (A), an individual shall not be 
considered to be disabled for purposes of this title if alcoholism or 
drug addiction would (but for this subparagraph) be a contributing 
factor material to the Commissioner's determination that the individual 
is disabled.''.
            (2) Representative payee requirements.--
                    (A) Section 1631(a)(2)(A)(ii)(II) of such Act (42 
                U.S.C. 1383(a)(2)(A)(ii)(II)) is amended to read as 
                follows:
    ``(II) In the case of an individual eligible for benefits under 
this title by reason of disability, the payment of such benefits shall 
be made to a representative payee if the Commissioner of Social 
Security determines that such payment would serve the interest of the 
individual because the individual also has an alcoholism or drug 
addiction condition (as determined by the Commissioner) that prevents 
the individual from managing such benefits.''.
                    (B) Section 1631(a)(2)(B)(vii) of such Act (42 
                U.S.C. 1383(a)(2)(B)(vii)) is amended by striking 
                ``eligible for benefits'' and all that follows through 
                ``is disabled'' and inserting ``described in 
                subparagraph (A)(ii)(II)''.
                    (C) Section 1631(a)(2)(B)(ix)(II) of such Act (42 
                U.S.C. 1383(a)(2)(B)(ix)(II)) is amended by striking 
                all that follows ``15 years, or'' and inserting 
                ``described in subparagraph (A)(ii)(II).''.
                    (D) Section 1631(a)(2)(D)(i)(II) of such Act (42 
                U.S.C. 1383(a)(2)(D)(i)(II)) is amended by striking 
                ``eligible for benefits'' and all that follows through 
                ``is disabled'' and inserting ``described in 
                subparagraph (A)(ii)(II)''.
            (3) Treatment services for individuals with a substance 
        abuse condition.--Title XVI of such Act (42 U.S.C. 1381 et 
        seq.) is amended by adding at the end the following new 
        section:

 ``treatment services for individuals with a substance abuse condition

    ``Sec. 1636. In the case of any individual whose benefits under 
this title are paid to a representative payee pursuant to section 
1631(a)(2)(A)(ii)(II), the Commissioner of Social Security shall refer 
such individual to the appropriate State agency administering the State 
plan for substance abuse treatment services approved under subpart II 
of part B of title XIX of the Public Health Service Act (42 U.S.C. 
300x-21 et seq.).''.
            (4) Conforming amendments.--
                    (A) Section 1611(e) of such Act (42 U.S.C. 1382(e)) 
                is amended by striking paragraph (3).
                    (B) Section 1634 of such Act (42 U.S.C. 1383c) is 
                amended by striking subsection (e).
            (5) Effective dates.--
                    (A) The amendments made by paragraphs (1) and (4) 
                shall apply to any individual who applies for, or whose 
                claim is adjudicated with respect to, supplemental 
                security income benefits under title XVI of the Social 
                Security Act based on disability on or after the date 
                of the enactment of this Act, and, in the case of any 
                individual who has applied for, and whose claim has 
                been adjudicated with respect to, such benefits before 
                such date of enactment, such amendments shall apply 
                only with respect to such benefits for months beginning 
                on or after January 1, 1997.
                    (B) The amendments made by paragraphs (2) and (3) 
                shall apply with respect to supplemental security 
                income benefits under title XVI of the Social Security 
                Act for which applications are filed on or after the 
                date of the enactment of this Act.
                    (C) If an individual who is eligible for 
                supplemental security income benefits under title XVI 
                of the Social Security Act for the month in which this 
                Act is enacted and whose eligibility for such benefits 
                would terminate by reason of the amendments made by 
                this subsection reapplies for supplemental security 
                income benefits under title XVI of such Act (as amended 
                by this Act) within 120 days after the date of the 
                enactment of this Act, the Commissioner of Social 
                Security shall, not later than January 1, 1997, 
                complete the eligibility redetermination with respect 
                to such individual pursuant to the procedures of such 
                title.
                    (D) For purposes of this paragraph, the phrase 
                ``supplemental security income benefits under title XVI 
                of the Social Security Act'' includes supplementary 
                payments pursuant to an agreement for Federal 
                administration under section 1616(a) of the Social 
                Security Act and payments pursuant to an agreement 
                entered into under section 212(b) of Public Law 93-66.
    (c) Conforming Amendment.--Section 201(c) of the Social Security 
Independence and Program Improvements Act of 1994 (42 U.S.C. 425 note) 
is repealed.
    (d) Supplemental Funding for Alcohol and Substance Abuse Treatment 
Programs.--
            (1) In general.--Out of any money in the Treasury not 
        otherwise appropriated, there are hereby appropriated to 
        supplement State and Tribal programs funded under section 1933 
        of the Public Health Service Act (42 U.S.C. 300x-33), 
        $100,000,000 for each of the fiscal years 1997 and 1998.
            (2) Additional funds.--Amounts appropriated under paragraph 
        (1) shall be in addition to any funds otherwise appropriated 
        for allotments under section 1933 of the Public Health Service 
        Act (42 U.S.C. 300x-33) and shall be allocated pursuant to such 
        section 1933.
            (3) Use of Funds.--A State or Tribal government receiving 
        an allotment under this subsection shall consider as 
        priorities, for purposes of expending funds allotted under this 
        subsection, activities relating to the treatment of the abuse 
        of alcohol and other drugs.

SEC. 4. ENTITLEMENT OF STEPCHILDREN TO CHILD'S INSURANCE BENEFITS BASED 
              ON ACTUAL DEPENDENCY ON STEPPARENT SUPPORT.

    (a) Requirement of Actual Dependency for Future Entitlements.--
            (1) In general.--Section 202(d)(4) of the Social Security 
        Act (42 U.S.C. 402(d)(4)) is amended by striking ``was living 
        with or''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to benefits of individuals who become 
        entitled to such benefits for months after the third month 
        following the month in which this Act is enacted.
    (b) Termination of Child's Insurance Benefits Based on Work Record 
of Stepparent Upon Natural Parent's Divorce From Stepparent.--
            (1) In general.--Section 202(d)(1) of the Social Security 
        Act (42 U.S.C. 402(d)(1)) is amended--
                    (A) by striking ``or'' at the end of subparagraph 
                (F);
                    (B) by striking the period at the end of 
                subparagraph (G) and inserting ``; or''; and
                    (C) by inserting after subparagraph (G) the 
                following new subparagraph:
            ``(H) if the benefits under this subsection are based on 
        the wages and self-employment income of a stepparent who is 
        subsequently divorced from such child's natural parent, the 
        month after the month in which such divorce becomes final.''.
            (2) Notification.--Section 202(d) of such Act (42 U.S.C. 
        402(d)) is amended by adding the following new paragraph:
    ``(10) For purposes of paragraph (1)(H)--
            ``(A) each stepparent shall notify the Commissioner of 
        Social Security of any divorce upon such divorce becoming 
        final; and
            ``(B) the Commissioner shall annually notify any stepparent 
        of the rule for termination described in paragraph (1)(H) and 
        of the requirement described in subparagraph (A).''.
            (3) Effective dates.--
                    (A) The amendments made by paragraph (1) shall 
                apply with respect to notifications of divorces 
                received by the Commissioner of Social Security on or 
                after the date of the enactment of this Act.
                    (B) The amendment made by paragraph (2) shall take 
                effect on the date of the enactment of this Act.

SEC. 5. ESTABLISHMENT OF DISABILITY INSURANCE CONTINUING DISABILITY 
              REVIEW ADMINISTRATION REVOLVING ACCOUNT.

    (a) Continuing Disability Review Administration Revolving Account 
for Title II Disability Benefits in the Federal Disability Insurance 
Trust Fund.--
            (1) In general.--Section 201 of the Social Security Act (42 
        U.S.C. 401) is amended by adding at the end the following new 
        subsection:
    ``(n)(1) There is hereby created in the Federal Disability 
Insurance Trust Fund a Continuing Disability Review Administration 
Revolving Account (hereinafter in this subsection referred to as the 
`Account'). The Account shall consist initially of $300,000,000 (which 
is hereby transferred to the Account from amounts otherwise available 
in such Trust Fund) and shall also consist thereafter of such other 
amounts as may be transferred to it under this subsection. Such amounts 
in the Account shall be considered amounts in the Federal Disability 
Insurance Trust Fund for purposes of subsections (d), (e), and (f), and 
the Managing Trustee shall credit the investment proceeds with respect 
to such amounts to the Account. The balance in the Account shall be 
available solely for expenditures certified under paragraph (2).
    ``(2)(A) Before October 1 of each calendar year, the Chief Actuary 
of the Social Security Administration shall--
            ``(i) estimate the present value of savings to the Federal 
        Old-Age and Survivors Insurance Trust Fund, the Federal 
        Disability Insurance Trust Fund, the Federal Hospital Insurance 
        Trust Fund, and the Federal Supplementary Medical Insurance 
        Trust Fund which will accrue for all years as a result of 
        cessations of benefit payments resulting from continuing 
        disability reviews carried out pursuant to the requirements of 
        section 221(i) during the fiscal year ending on September 30 of 
        such calendar year (increased or decreased as appropriate to 
        account for deviations of estimates for prior fiscal years from 
        the actual amounts for such fiscal years), and
            ``(ii) certify the amount of such estimate to the Managing 
        Trustee.
    ``(B) Upon receipt of certification by the Chief Actuary under 
subparagraph (A), the Managing Trustee shall transfer to the Account 
from amounts otherwise in the Trust Fund an amount equal to the 
estimated savings so certified.
    ``(C) To the extent of available funds in the Account, upon 
certification by the Chief Actuary that such funds are currently 
required to meet expenditures necessary to provide for continuing 
disability reviews required under section 221(i), the Managing Trustee 
shall make available to the Commissioner of Social Security from the 
Account the amount so certified.
    ``(D) The expenditures referred to in subparagraph (C) shall 
include, but not be limited to, the cost of staffing, training, 
purchase of medical and other evidence, and processing related to 
appeals (including appeal hearings) and to overpayments and related 
indirect costs.
    ``(E) The Commissioner shall use funds made available pursuant to 
this paragraph solely for the purposes described in subparagraph 
(C).''.
            (2) Conforming amendment.--Section 201(g)(1)(A) of such Act 
        (42 U.S.C. 401(g)(1)(A)) is amended in the last sentence by 
        inserting ``(other than expenditures from available funds in 
        the Continuing Disability Review Administration Revolving 
        Account in the Federal Disability Insurance Trust Fund made 
        pursuant to subsection (n))'' after ``is responsible'' the 
        first place it appears.
            (3) Annual report.--Section 221(i)(3) of such Act (42 
        U.S.C. 421(i)(3)) is amended--
                    (A) by striking ``and the number'' and inserting 
                ``the number'';
                    (B) by striking the period at the end and inserting 
                a comma; and
                    (C) by adding at the end the following: ``and a 
                final accounting of amounts transferred to the 
                Continuing Disability Review Administration Revolving 
                Account in the Federal Disability Insurance Trust Fund 
                during the year, the amount made available from such 
                Account during such year pursuant to certifications 
                made by the Chief Actuary of the Social Security 
                Administration under section 201(n)(2)(C), and 
                expenditures made by the Commissioner of Social 
                Security for the purposes described in section 
                201(n)(2)(C) during the year, including a comparison of 
                the number of continuing disability reviews conducted 
                during the year with the estimated number of continuing 
                disability reviews upon which the estimate of such 
                expenditures was made under section 201(n)(2)(A).''.
    (b) Effective Date and Sunset.--
            (1) Effective date.--The amendments made by subsection (a) 
        shall apply for fiscal years beginning on or after October 1, 
        1995, and ending on or before September 30, 2002.
            (2) Sunset.--Effective October 1, 2002, the Continuing 
        Disability Review Administration Revolving Account in the 
        Federal Disability Insurance Trust Fund shall cease to exist, 
        any balance in such Account shall revert to funds otherwise 
        available in such Trust Fund, and sections 201 and 221 of the 
        Social Security Act shall read as if the amendments made by 
        subsection (a) had not been enacted.
    (c) Office of Chief Actuary in the Social Security 
Administration.--
            (1) In general.--Section 702 of such Act (42 U.S.C. 902) is 
        amended--
                    (A) by redesignating subsections (c) and (d) as 
                subsections (d) and (e), respectively; and
                    (B) by inserting after subsection (b) the following 
                new subsection:

                            ``Chief Actuary

    ``(c)(1) There shall be in the Administration a Chief Actuary, who 
shall be appointed by, and in direct line of authority to, the 
Commissioner. The Chief Actuary shall be appointed from individuals who 
have demonstrated, by their education and experience, superior 
expertise in the actuarial sciences. The Chief Actuary shall serve as 
the chief actuarial officer of the Administration, and shall exercise 
such duties as are appropriate for the office of the Chief Actuary and 
in accordance with professional standards of actuarial independence. 
The Chief Actuary may be removed only for cause.
    ``(2) The Chief Actuary shall be compensated at the highest rate of 
basic pay for the Senior Executive Service under section 5382(b) of 
title 5, United States Code.''.
            (2) Effective date of subsection.--The amendments made by 
        this subsection shall take effect on the date of the enactment 
        of this Act.

SEC. 6. APPLICABILITY OF PUBLIC DEBT LIMIT TO FEDERAL TRUST FUNDS AND 
              OTHER FEDERAL ACCOUNTS.

    (a) Protection of Federal Funds.--Notwithstanding any other 
provision of law--
            (1) no officer or employee of the United States may--
                    (A) delay the deposit of any amount into (or delay 
                the credit of any amount to) any Federal fund or 
                otherwise vary from the normal terms, procedures, or 
                timing for making such deposits or credits, or
                    (B) refrain from the investment in public debt 
                obligations of amounts in any Federal fund,
        if a purpose of such action or inaction is to not increase the 
        amount of outstanding public debt obligations, and
            (2) no officer or employee of the United States may 
        disinvest amounts in any Federal fund which are invested in 
        public debt obligations if a purpose of the disinvestment is to 
        reduce the amount of outstanding public debt obligations.
    (b) Protection of Benefits and Expenditures for Administrative 
Expenses.--
            (1) In general.--Notwithstanding subsection (a), during any 
        period for which cash benefits or administrative expenses would 
        not otherwise be payable from a Federal fund by reason of an 
        inability to issue further public debt obligations because of 
        the applicable public debt limit, public debt obligations held 
        by such Federal fund shall be sold or redeemed only for the 
        purpose of making payment of such benefits or administrative 
        expenses and only to the extent cash assets of the Federal fund 
        are not available from month to month for making payment of 
        such benefits or administrative expenses.
            (2) Issuance of corresponding debt.--For purposes of 
        undertaking the sale or redemption of public debt obligations 
        held by a Federal fund pursuant to paragraph (1), the Secretary 
        of the Treasury may issue corresponding public debt obligations 
        to the public, in order to obtain the cash necessary for 
        payment of benefits or administrative expenses from such 
        Federal fund, notwithstanding the public debt limit.
            (3) Advance notice of sale or redemption.--Not less than 3 
        days prior to the date on which, by reason of the public debt 
        limit, the Secretary of the Treasury expects to undertake a 
        sale or redemption authorized under paragraph (1), the 
        Secretary of the Treasury shall report to each House of the 
        Congress and to the Comptroller General of the United States 
        regarding the expected sale or redemption. Upon receipt of such 
        report, the Comptroller General shall review the extent of 
        compliance with subsection (a) and paragraphs (1) and (2) of 
        this subsection and shall issue such findings and 
        recommendations to each House of the Congress as the 
        Comptroller General considers necessary and appropriate.
    (c) Public Debt Obligation.--For purposes of this section, the term 
``public debt obligation'' means any obligation subject to the public 
debt limit established under section 3101 of title 31, United States 
Code.
    (d) Federal Fund.--For purposes of this section, the term ``Federal 
fund'' means--
            (1) the Federal Old-Age and Survivors Insurance Trust Fund;
            (2) the Federal Disability Insurance Trust Fund;
            (3) the Federal Hospital Insurance Trust Fund; and
            (4) the Federal Supplementary Medical Insurance Trust Fund.
                                 <all>
S 1470 IS----2
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