H. R. 3136
One Hundred Fourth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Wednesday,
the third day of January, one thousand nine hundred and ninety-six
An Act
To provide for enactment of the Senior Citizens’ Right to Work Act of 1996, the
Line Item Veto Act, and the Small Business Growth and Fairness Act of 1996,
and to provide for a permanent increase in the public debt limit.
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 ‘‘Contract with America Advance-
ment Act of 1996’’.
TITLE I—SOCIAL SECURITY EARNINGS
LIMITATION AMENDMENTS
SEC. 101. SHORT TITLE OF TITLE.
This title may be cited as the ‘‘Senior Citizens’ Right to Work
Act of 1996’’.
SEC. 102. 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, $1,041.662⁄3,
‘‘(ii) for each month of any taxable year ending after
1996 and before 1998, $1,125.00,
‘‘(iii) for each month of any taxable year ending after
1997 and before 1999, $1,208.331⁄3,
‘‘(iv) for each month of any taxable year ending after
1998 and before 2000, $1,291.662⁄3,
‘‘(v) for each month of any taxable year ending after
1999 and before 2001, $1,416.662⁄3,
‘‘(vi) for each month of any taxable year ending after
2000 and before 2002, $2,083.331⁄3, and
‘‘(vii) for each month of any taxable year ending after
2001 and before 2003, $2,500.00.’’.
(b) CONFORMING AMENDMENTS.—
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(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 individ-
uals)’’; and
(B) in subclause (II), by striking ‘‘for 1992’’ and insert-
ing ‘‘for 2000 (with respect to individuals described in
subparagraph (D)) or 1992 (with respect to other individ-
uals)’’.
(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 individ-
uals 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 102 of the Senior Citi-
zens’ Right to Work Act of 1996 had not been enacted’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply with respect to taxable years ending after 1995.
SEC. 103. CONTINUING DISABILITY REVIEWS.
(a) AUTHORIZATION
FOR
APPROPRIATIONS
FOR
CONTINUING
DISABILITY REVIEWS.—Section 201(g)(1)(A) of the Social Security
Act (42 U.S.C. 401(g)(1)(A)) is amended by adding at the end the
following: ‘‘Of the amounts authorized to be made available out
of the Federal Old-Age and Survivors Insurance Trust Fund and
the Federal Disability Insurance Trust Fund under the preceding
sentence, there are hereby authorized to be made available from
either or both of such Trust Funds for continuing disability
reviews—
‘‘(i) for fiscal year 1996, $260,000,000;
‘‘(ii) for fiscal year 1997, $360,000,000;
‘‘(iii) for fiscal year 1998, $570,000,000;
‘‘(iv) for fiscal year 1999, $720,000,000;
‘‘(v) for fiscal year 2000, $720,000,000;
‘‘(vi) for fiscal year 2001, $720,000,000; and
‘‘(viii) for fiscal year 2002, $720,000,000.
For purposes of this subparagraph, the term ‘continuing disability
review’ means a review conducted pursuant to section 221(i) and
a review or disability eligibility redetermination conducted to deter-
mine the continuing disability and eligibility of a recipient of bene-
fits under the supplemental security income program under title
XVI, including any review or redetermination conducted pursuant
to section 207 or 208 of the Social Security Independence and
Program Improvements Act of 1994 (Public Law 103–296).’’.
(b) ADJUSTMENT TO DISCRETIONARY SPENDING LIMITS.—Section
251(b)(2) of the Balanced Budget and Emergency Deficit Control
Act of 1985 is amended by adding the following new subparagraph:
‘‘(H) CONTINUING DISABILITY REVIEWS.—(i) Whenever
a bill or joint resolution making appropriations for fiscal
year 1996, 1997, 1998, 1999, 2000, 2001, or 2002 is enacted
that specifies an amount for continuing disability reviews
under the heading ‘Limitation on Administrative Expenses’
for the Social Security Administration, the adjustments
H. R. 3136—3
for that fiscal year shall be the additional new budget
authority provided in that Act for such reviews for that
fiscal year and the additional outlays flowing from such
amounts, but shall not exceed—
‘‘(I) for fiscal year 1996, $15,000,000 in additional
new budget authority and $60,000,000 in additional
outlays;
‘‘(II) for fiscal year 1997, $25,000,000 in additional
new budget authority and $160,000,000 in additional
outlays;
‘‘(III) for fiscal year 1998, $145,000,000 in addi-
tional new budget authority and $370,000,000 in addi-
tional outlays;
‘‘(IV) for fiscal year 1999, $280,000,000 in addi-
tional new budget authority and $520,000,000 in addi-
tional outlays;
‘‘(V) for fiscal year 2000, $317,500,000 in additional
new budget authority and $520,000,000 in additional
outlays;
‘‘(VI) for fiscal year 2001, $317,500,000 in addi-
tional new budget authority and $520,000,000 in addi-
tional outlays; and
‘‘(VII) for fiscal year 2002, $317,500,000 in addi-
tional new budget authority and $520,000,000 in addi-
tional outlays.
‘‘(ii) As used in this subparagraph—
‘‘(I) the term ‘continuing disability reviews’ has
the meaning given such term by section 201(g)(1)(A)
of the Social Security Act;
‘‘(II) the term ‘additional new budget authority’
means new budget authority provided for a fiscal year,
in excess of $100,000,000, for the Supplemental Secu-
rity Income program and specified to pay for the costs
of continuing disability reviews attributable to the
Supplemental Security Income program; and
‘‘(III) the term ‘additional outlays’ means outlays,
in excess of $200,000,000 in a fiscal year, flowing from
the amounts specified for continuing disability reviews
under the heading ‘Limitation on Administrative
Expenses’ for the Social Security Administration,
including outlays in that fiscal year flowing from
amounts specified in Acts enacted for prior fiscal years
(but not before 1996).’’.
(c) BUDGET ALLOCATION ADJUSTMENT BY BUDGET COMMITTEE.—
Section 606 of the Congressional Budget and Impoundment Control
Act of 1974 is amended by adding the following new subsection:
‘‘(e) CONTINUING DISABILITY REVIEW ADJUSTMENT.—
‘‘(1) IN GENERAL.—(A) For fiscal year 1996, upon the enact-
ment of the Contract with America Advancement Act of 1996,
the Chairmen of the Committees on the Budget of the Senate
and House of Representatives shall make the adjustments
referred to in subparagraph (C) to reflect $15,000,000 in addi-
tional new budget authority and $60,000,000 in additional out-
lays for continuing disability reviews (as defined in section
201(g)(1)(A) of the Social Security Act).
‘‘(B) When the Committee on Appropriations reports an
appropriations measure for fiscal year 1997, 1998, 1999, 2000,
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2001, or 2002 that specifies an amount for continuing disability
reviews under the heading ‘Limitation on Administrative
Expenses’ for the Social Security Administration, or when a
conference committee submits a conference report thereon, the
Chairman of the Committee on the Budget of the Senate or
House of Representatives (whichever is appropriate) shall make
the adjustments referred to in subparagraph (C) to reflect the
additional new budget authority for continuing disability
reviews provided in that measure or conference report and
the additional outlays flowing from such amounts for continuing
disability reviews.
‘‘(C) The adjustments referred to in this subparagraph con-
sist of adjustments to—
‘‘(i) the discretionary spending limits for that fiscal
year as set forth in the most recently adopted concurrent
resolution on the budget;
‘‘(ii) the allocations to the Committees on Appropria-
tions of the Senate and the House of Representatives for
that fiscal year under sections 302(a) and 602(a); and
‘‘(iii) the appropriate budgetary aggregates for that
fiscal year in the most recently adopted concurrent resolu-
tion on the budget.
‘‘(D) The adjustments under this paragraph for any fiscal
year shall not exceed the levels set forth in section 251(b)(2)(H)
of the Balanced Budget and Emergency Deficit Control Act
of 1985 for that fiscal year. The adjusted discretionary spending
limits, allocations, and aggregates under this paragraph shall
be considered the appropriate limits, allocations, and aggregates
for purposes of congressional enforcement of this Act and
concurrent budget resolutions under this Act.
‘‘(2) REPORTING REVISED SUBALLOCATIONS.—Following the
adjustments made under paragraph (1), the Committees on
Appropriations of the Senate and the House of Representatives
may report appropriately revised suballocations pursuant to
sections 302(b) and 602(b) of this Act to carry out this sub-
section.
‘‘(3) DEFINITIONS.—As used in this section, the terms
‘continuing disability reviews’, ‘additional new budget author-
ity’, and ‘additional outlays’ shall have the same meanings
as provided in section 251(b)(2)(H)(ii) of the Balanced Budget
and Emergency Deficit Control Act of 1985.’’.
(d) USE OF FUNDS AND REPORTS.—
(1) IN GENERAL.—The Commissioner of Social Security shall
ensure that funds made available for continuing disability
reviews (as defined in section 201(g)(1)(A) of the Social Security
Act) are used, to the greatest extent practicable, to maximize
the combined savings in the old-age, survivors, and disability
insurance, supplemental security income, Medicare, and medic-
aid programs.
(2) REPORT.—The Commissioner of Social Security shall
provide annually (at the conclusion of each of the fiscal years
1996 through 2002) to the Congress a report on continuing
disability reviews which includes—
(A) the amount spent on continuing disability reviews
in the fiscal year covered by the report, and the number
of reviews conducted, by category of review;
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(B) the results of the continuing disability reviews
in terms of cessations of benefits or determinations of
continuing eligibility, by program; and
(C) the estimated savings over the short-, med-
ium-, and long-term to the old-age, survivors, and disability
insurance, supplemental security income, Medicare, and
medicaid programs from continuing disability reviews
which result in cessations of benefits and the estimated
present value of such savings.
(e) OFFICE
OF
CHIEF
ACTUARY
IN
THE
SOCIAL
SECURITY
ADMINISTRATION.—
(1) IN GENERAL.—Section 702 of the Social Security Act
(42 U.S.C. 902) is amended—
(A) by redesignating subsections (c) and (d) as sub-
sections (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 experi-
ence, 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. 104. ENTITLEMENT OF STEPCHILDREN TO CHILD’S INSURANCE
BENEFITS BASED ON ACTUAL DEPENDENCY ON STEP-
PARENT 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
H. R. 3136—6
(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 final divorces occurring after the
third month following the month in which this Act is
enacted.
(B) The amendment made by paragraph (2) shall take
effect on the date of the enactment of this Act.
SEC. 105. 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 deter-
mines 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) and the individual
is incapable of 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 insert-
ing ‘‘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) of such Act (42 U.S.C.
405(j)(4)(A)(ii)(II)) is amended by striking ‘‘entitled to bene-
fits’’ 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
H. R. 3136—7
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 finally adjudicated by the Commissioner of Social
Security 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 finally adjudicated by the Commissioner 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 after the third month following the month in
which this Act is enacted.
(C) Within 90 days after the date of the enactment
of this Act, the Commissioner of Social Security shall notify
each individual who is entitled to monthly insurance bene-
fits 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. If
such an individual 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 redeter-
mination (including a new medical determination) 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 contribut-
ing 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:
H. R. 3136—8
‘‘(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 alcohol-
ism or drug addiction condition (as determined by the Commis-
sioner) and the individual is incapable of 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 bene-
fits’’ 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
REFERRALS
FOR
INDIVIDUALS
WITH
AN
ALCOHOLISM OR DRUG ADDICTION 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 REFERRALS FOR INDIVIDUALS WITH AN ALCOHOLISM OR
DRUG ADDICTION 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 finally adjudicated by the Commissioner of Social
Security 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 finally adjudicated by the
Commissioner 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 after the third month following
the month in which this Act is enacted.
H. R. 3136—9
(C) Within 90 days after the date of the enactment
of this Act, the Commissioner of Social Security shall notify
each 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. If such an
individual reapplies for supplemental security income bene-
fits 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 redetermina-
tion (including a new medical determination) with respect
to such individual pursuant to the procedures of such title.
(D) For purposes of this paragraph, the phrase ‘‘supple-
mental 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),
$50,000,000 for each of the fiscal years 1997 and 1998.
(2) ADDITIONAL FUNDS.—Amounts appropriated under para-
graph (1) shall be in addition to any funds otherwise appro-
priated 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. 106. PILOT STUDY OF EFFICACY OF PROVIDING INDIVIDUALIZED
INFORMATION TO RECIPIENTS OF OLD-AGE AND SURVI-
VORS INSURANCE BENEFITS.
(a) IN GENERAL.—During a 2-year period beginning as soon
as practicable in 1996, the Commissioner of Social Security shall
conduct a pilot study of the efficacy of providing certain individual-
ized information to recipients of monthly insurance benefits under
section 202 of the Social Security Act, designed to promote better
understanding of their contributions and benefits under the social
security system. The study shall involve solely beneficiaries whose
entitlement to such benefits first occurred in or after 1984 and
who have remained entitled to such benefits for a continuous period
of not less than 5 years. The number of such recipients involved
in the study shall be of sufficient size to generate a statistically
H. R. 3136—10
valid sample for purposes of the study, but shall not exceed 600,000
beneficiaries.
(b) ANNUALIZED STATEMENTS.—During the course of the study,
the Commissioner shall provide to each of the beneficiaries involved
in the study one annualized statement, setting forth the following
information:
(1) an estimate of the aggregate wages and self-employment
income earned by the individual on whose wages and self-
employment income the benefit is based, as shown on the
records of the Commissioner as of the end of the last calendar
year ending prior to the beneficiary’s first month of entitlement;
(2) an estimate of the aggregate of the employee and self-
employment contributions, and the aggregate of the employer
contributions (separately identified), made with respect to the
wages and self-employment income on which the benefit is
based, as shown on the records of the Commissioner as of
the end of the calendar year preceding the beneficiary’s first
month of entitlement; and
(3) an estimate of the total amount paid as benefits under
section 202 of the Social Security Act based on such wages
and self-employment income, as shown on the records of the
Commissioner as of the end of the last calendar year preceding
the issuance of the statement for which complete information
is available.
(c) INCLUSION WITH MATTER OTHERWISE DISTRIBUTED TO BENE-
FICIARIES.—The Commissioner shall ensure that reports provided
pursuant to this section are, to the maximum extent practicable,
included with other reports currently provided to beneficiaries on
an annual basis.
(d) REPORT TO THE CONGRESS.—The Commissioner shall report
to each House of the Congress regarding the results of the pilot
study conducted pursuant to this section not later than 60 days
after the completion of such study.
SEC. 107. PROTECTION OF SOCIAL SECURITY AND MEDICARE TRUST
FUNDS.
(a) IN GENERAL.—Part A of title XI of the Social Security
Act (42 U.S.C. 1301 et seq.) is amended by adding at the end
the following new section:
‘‘PROTECTION OF SOCIAL SECURITY AND MEDICARE TRUST FUNDS
‘‘SEC. 1145. (a) IN GENERAL.—No officer or employee of the
United States shall—
‘‘(1) 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,
‘‘(2) refrain from the investment in public debt obligations
of amounts in any Federal fund, or
‘‘(3) redeem prior to maturity amounts in any Federal
fund which are invested in public debt obligations for any
purpose other than the payment of benefits or administrative
expenses from such Federal fund.
‘‘(b) 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.
H. R. 3136—11
‘‘(c) 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.’’.
(b) EFFECTIVE DATE.—The amendment made by this section
shall take effect on the date of the enactment of this Act.
SEC. 108. PROFESSIONAL STAFF FOR THE SOCIAL SECURITY ADVISORY
BOARD.
Section 703(i) of the Social Security Act (42 U.S.C. 903(i))
is amended in the first sentence by inserting after ‘‘Staff Director’’
the following: ‘‘, and three professional staff members one of whom
shall be appointed from among individuals approved by the mem-
bers of the Board who are not members of the political party
represented by the majority of the Board,’’.
TITLE II—SMALL BUSINESS
REGULATORY FAIRNESS
SEC. 201. SHORT TITLE.
This title may be cited as the ‘‘Small Business Regulatory
Enforcement Fairness Act of 1996’’.
SEC. 202. FINDINGS.
Congress finds that—
(1) a vibrant and growing small business sector is critical
to creating jobs in a dynamic economy;
(2) small businesses bear a disproportionate share of regu-
latory costs and burdens;
(3) fundamental changes that are needed in the regulatory
and enforcement culture of Federal agencies to make agencies
more responsive to small business can be made without com-
promising the statutory missions of the agencies;
(4) three of the top recommendations of the 1995 White
House Conference on Small Business involve reforms to the
way government regulations are developed and enforced, and
reductions in government paperwork requirements;
(5) the requirements of chapter 6 of title 5, United States
Code, have too often been ignored by government agencies,
resulting in greater regulatory burdens on small entities than
necessitated by statute; and
(6) small entities should be given the opportunity to seek
judicial review of agency actions required by chapter 6 of title
5, United States Code.
SEC. 203. PURPOSES.
The purposes of this title are—
(1) to implement certain recommendations of the 1995
White House Conference on Small Business regarding the devel-
opment and enforcement of Federal regulations;
(2) to provide for judicial review of chapter 6 of title 5,
United States Code;
H. R. 3136—12
(3) to encourage the effective participation of small
businesses in the Federal regulatory process;
(4) to simplify the language of Federal regulations affecting
small businesses;
(5) to develop more accessible sources of information on
regulatory and reporting requirements for small businesses;
(6) to create a more cooperative regulatory environment
among agencies and small businesses that is less punitive
and more solution-oriented; and
(7) to make Federal regulators more accountable for their
enforcement actions by providing small entities with a meaning-
ful opportunity for redress of excessive enforcement activities.
Subtitle A—Regulatory Compliance
Simplification
SEC. 211. DEFINITIONS.
For purposes of this subtitle—
(1) the terms ‘‘rule’’ and ‘‘small entity’’ have the same
meanings as in section 601 of title 5, United States Code;
(2) the term ‘‘agency’’ has the same meaning as in section
551 of title 5, United States Code; and
(3) the term ‘‘small entity compliance guide’’ means a docu-
ment designated as such by an agency.
SEC. 212. COMPLIANCE GUIDES.
(a) COMPLIANCE GUIDE.—For each rule or group of related
rules for which an agency is required to prepare a final regulatory
flexibility analysis under section 604 of title 5, United States Code,
the agency shall publish one or more guides to assist small entities
in complying with the rule, and shall designate such publications
as ‘‘small entity compliance guides’’. The guides shall explain the
actions a small entity is required to take to comply with a rule
or group of rules. The agency shall, in its sole discretion, taking
into account the subject matter of the rule and the language of
relevant statutes, ensure that the guide is written using sufficiently
plain language likely to be understood by affected small entities.
Agencies may prepare separate guides covering groups or classes
of similarly affected small entities, and may cooperate with associa-
tions of small entities to develop and distribute such guides.
(b) COMPREHENSIVE SOURCE OF INFORMATION.—Agencies shall
cooperate to make available to small entities through comprehensive
sources of information, the small entity compliance guides and
all other available information on statutory and regulatory require-
ments affecting small entities.
(c) LIMITATION ON JUDICIAL REVIEW.—An agency’s small entity
compliance guide shall not be subject to judicial review, except
that in any civil or administrative action against a small entity
for a violation occurring after the effective date of this section,
the content of the small entity compliance guide may be considered
as evidence of the reasonableness or appropriateness of any pro-
posed fines, penalties or damages.
SEC. 213. INFORMAL SMALL ENTITY GUIDANCE.
(a) GENERAL.—Whenever appropriate in the interest of admin-
istering statutes and regulations within the jurisdiction of an agency
H. R. 3136—13
which regulates small entities, it shall be the practice of the agency
to answer inquiries by small entities concerning information on,
and advice about, compliance with such statutes and regulations,
interpreting and applying the law to specific sets of facts supplied
by the small entity. In any civil or administrative action against
a small entity, guidance given by an agency applying the law
to facts provided by the small entity may be considered as evidence
of the reasonableness or appropriateness of any proposed fines,
penalties or damages sought against such small entity.
(b) PROGRAM.—Each agency regulating the activities of small
entities shall establish a program for responding to such inquiries
no later than 1 year after enactment of this section, utilizing exist-
ing functions and personnel of the agency to the extent practicable.
(c) REPORTING.—Each agency regulating the activities of small
business shall report to the Committee on Small Business and
Committee on Governmental Affairs of the Senate and the Commit-
tee on Small Business and Committee on the Judiciary of the
House of Representatives no later than 2 years after the date
of the enactment of this section on the scope of the agency’s pro-
gram, the number of small entities using the program, and the
achievements of the program to assist small entity compliance
with agency regulations.
SEC. 214. SERVICES OF SMALL BUSINESS DEVELOPMENT CENTERS.
(a) Section 21(c)(3) of the Small Business Act (15 U.S.C.
648(c)(3)) is amended—
(1) in subparagraph (O), by striking ‘‘and’’ at the end;
(2) in subparagraph (P), by striking the period at the end
and inserting a semicolon; and
(3) by inserting after subparagraph (P) the following new
subparagraphs:
‘‘(Q) providing information to small business concerns
regarding compliance with regulatory requirements; and
‘‘(R) developing informational publications, establishing
resource centers of reference materials, and distributing
compliance guides published under section 312(a) of the
Small Business Regulatory Enforcement Fairness Act of
1996.’’.
(b) Nothing in this Act in any way affects or limits the ability
of other technical assistance or extension programs to perform
or continue to perform services related to compliance assistance.
SEC. 215. COOPERATION ON GUIDANCE.
Agencies may, to the extent resources are available and where
appropriate, in cooperation with the States, develop guides that
fully integrate requirements of both Federal and State regulations
where regulations within an agency’s area of interest at the Federal
and State levels impact small entities. Where regulations vary
among the States, separate guides may be created for separate
States in cooperation with State agencies.
SEC. 216. EFFECTIVE DATE.
This subtitle and the amendments made by this subtitle shall
take effect on the expiration of 90 days after the date of enactment
of this subtitle.
H. R. 3136—14
Subtitle B—Regulatory Enforcement
Reforms
SEC. 221. DEFINITIONS.
For purposes of this subtitle—
(1) the terms ‘‘rule’’ and ‘‘small entity’’ have the same
meanings as in section 601 of title 5, United States Code;
(2) the term ‘‘agency’’ has the same meaning as in section
551 of title 5, United States Code; and
(3) the term ‘‘small entity compliance guide’’ means a docu-
ment designated as such by an agency.
SEC. 222. SMALL BUSINESS AND AGRICULTURE ENFORCEMENT
OMBUDSMAN.
The Small Business Act (15 U.S.C. 631 et seq.) is amended—
(1) by redesignating section 30 as section 31; and
(2) by inserting after section 29 the following new section:
‘‘SEC. 30. OVERSIGHT OF REGULATORY ENFORCEMENT.
‘‘(a) DEFINITIONS.—For purposes of this section, the term—
‘‘(1) ‘Board’ means a Regional Small Business Regulatory
Fairness Board established under subsection (c); and
‘‘(2) ‘Ombudsman’ means the Small Business and Agri-
culture Regulatory Enforcement Ombudsman designated under
subsection (b).
‘‘(b) SBA ENFORCEMENT OMBUDSMAN.—
‘‘(1) Not later than 180 days after the date of enactment
of this section, the Administrator shall designate a Small Busi-
ness and Agriculture Regulatory Enforcement Ombudsman,
who shall report directly to the Administrator, utilizing person-
nel of the Small Business Administration to the extent prac-
ticable. Other agencies shall assist the Ombudsman and take
actions as necessary to ensure compliance with the require-
ments of this section. Nothing in this section is intended to
replace or diminish the activities of any Ombudsman or similar
office in any other agency.
‘‘(2) The Ombudsman shall—
‘‘(A) work with each agency with regulatory authority
over small businesses to ensure that small business con-
cerns that receive or are subject to an audit, on-site inspec-
tion, compliance assistance effort, or other enforcement
related communication or contact by agency personnel are
provided with a means to comment on the enforcement
activity conducted by such personnel;
‘‘(B) establish means to receive comments from small
business concerns regarding actions by agency employees
conducting compliance or enforcement activities with
respect to the small business concern, means to refer com-
ments to the Inspector General of the affected agency in
the appropriate circumstances, and otherwise seek to main-
tain the identity of the person and small business concern
making such comments on a confidential basis to the same
extent as employee identities are protected under section
7 of the Inspector General Act of 1978 (5 U.S.C. App.);
‘‘(C) based on substantiated comments received from
small business concerns and the Boards, annually report