contributing factor material to the Secretary’s deter-
mination that they are disabled, where they may ob-
tain treatment described in subparagraph (B)(ii)(I);
‘‘(bb) refer such individuals to such placements
for such treatment; and
‘‘(cc) monitor compliance with the requirements
of subparagraph (B) by individuals who are referred
by the agency to such placements, and promptly re-
port to the Secretary any failure to comply with
such requirements.’’.
(C) PRESERVATION
OF
MEDICAID
BENE-
FITS.—Section 1634 of such Act (42 U.S.C.
13283c) is amended by adding at the end the
following:
‘‘(e) Each person to whom benefits under this title
by reason of disability are not payable for any month sole-
ly by reason of section 1611(e)(3)(B) shall be treated, for
purposes of title XIX, as receiving benefits under this title
for such month.’’.
(D) CONFORMING AMENDMENTS.—Section
1611(e)(3) of such Act (42 U.S.C. 1382(e)(3)),
as amended by subparagraphs (A) and (B) of
this paragraph, is amended—
(i) in subparagraph (A), by striking
‘‘(B)’’ and inserting ‘‘(C)’’; and
(ii) in subparagraph (C), by inserting
‘‘or (B)’’ after ‘‘(A)’’.
(E) EFFECTIVE DATE.—
(i) IN GENERAL.—Except as provided
in clauses (ii) and (iii), the amendments
made by this paragraph shall apply with
respect to benefits for months beginning
after 180 days after the date of the enact-
ment of this Act.
(ii) TIME
LIMITATION
ON
BENE-
FITS.—Section 1611(e)(3)(B)(v) of the So-
cial Security Act (as added by the amend-
ment made by subparagraph (A) of this
paragraph) shall apply with respect to ben-
efits for months ending after 180 days
after the date of the enactment of this Act,
and, for purposes of such section, in the
case of any individual entitled to benefits
by reason of disability for the first month
ending after 180 days after the date of the
enactment of this Act, such month shall be
treated as such individual’s first month of
entitlement to such benefits.
(iii) ESTABLISHMENT
OF
REFERRAL
AND
MONITORING
AGENCIES.—Section
1611(e)(3)(C)(iii) of the Social Security
Act (as added by the amendment made by
subparagraph (B)(iii) of this paragraph)
shall take effect 180 days after the date of
the enactment of this Act.
(4) IRRELEVANCE OF LEGALITY OF SUBSTAN-
TIAL GAINFUL ACTIVITY.—
(A) IN GENERAL.—Section 1614(a)(3)(D)
of such Act (42 U.S.C. 1382c(a)(3)(D)) is
amended by adding at the end the following:
‘‘The Secretary shall make determinations
under this title with respect to substantial gain-
ful activity, without regard to the legality of the
activity.’’.
(B) EFFECTIVE
DATE.—The amendment
made by subparagraph (A) shall take effect on
the date of the enactment of this Act.
(c) EFFECTIVE DATE.—The amendments made by
the preceding provisions of this section shall apply to bene-
fits payable for months beginning 180 or more days after
the date of the enactment of this Act.
(d) DEMONSTRATION PROJECTS.—
(1) IN GENERAL.—The Secretary of Health and
Human Services shall develop and carry out dem-
onstration projects designed to explore innovative re-
ferral, monitoring, and treatment approaches with
respect to—
(A) individuals who are entitled to disabil-
ity insurance benefits or child’s, widow’s, or
widower’s insurance benefits based on disability
under title II of the Social Security Act, and
(B) individuals who are eligible for supple-
mental security income benefits under title XVI
of such Act based solely on disability,
in cases in which alcoholism or drug addiction is a
contributing factor material to the Secretary’s deter-
mination that individuals are under a disability.
(2) SCOPE.—The demonstration projects devel-
oped under paragraph (1) shall be of sufficient scope
and shall be carried out on a wide enough scale to
permit a thorough evaluation of the alternative ap-
proaches under consideration while giving assurance
that the results derived from the projects will obtain
generally in the operation of the programs involved
without committing such programs to the adoption
of any particular system either locally or nationally.
(3) FINAL REPORT.—The Secretary shall sub-
mit to the Committee on Ways and Means of the
House of Representatives and the Committee on Fi-
nance of the Senate no later than December 31,
1997, a final report on the demonstration projects
carried out under this subsection, together with any
related data and materials which the Secretary may
consider appropriate. The authority under this sec-
tion shall terminate upon the transmittal of such
final report.
SEC. 202. ISSUANCE OF PHYSICAL DOCUMENTS IN THE
FORM OF BONDS, NOTES, OR CERTIFICATES
TO THE SOCIAL SECURITY TRUST FUNDS.
(a) REQUIREMENT THAT OBLIGATIONS ISSUED TO
THE OASDI TRUST FUNDS BE EVIDENCED BY PAPER
INSTRUMENTS IN THE FORM OF BONDS, NOTES, OR CER-
TIFICATES OF INDEBTEDNESS SETTING FORTH THEIR
TERMS.—Section 201(d) of the Social Security Act (42
U.S.C. 401(d)) is amended by inserting after the fifth sen-
tence the following new sentence: ‘‘Each obligation issued
for purchase by the Trust Funds under this subsection
shall be evidenced by a paper instrument in the form of
a bond, note, or certificate of indebtedness issued by the
Secretary of the Treasury setting forth the principal
amount, date of maturity, and interest rate of the obliga-
tion, and stating on its face that the obligation shall be
incontestable in the hands of the Trust Fund to which
it is issued, that the obligation is supported by the full
faith and credit of the United States, and that the United