H. R. 4277
One Hundred Third Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the twenty-fifth day of January, one thousand nine hundred and ninety-four
An Act
To establish the Social Security Administration as an independent agency and
to make other improvements in the old-age, survivors, and disability insurance
program.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the ‘‘Social Security
Independence and Program Improvements Act of 1994’’.
(b) TABLE OF CONTENTS.—The table of contents of this Act
is as follows:
Sec. 1. Short title and table of contents.
TITLE I—ESTABLISHMENT OF THE SOCIAL SECURITY ADMINISTRATION
AS AN INDEPENDENT AGENCY
Sec. 101. Establishment of Social Security Administration as an independent
agency.
Sec. 102. Commissioner and Deputy Commissioner; other officers.
Sec. 103. Social Security Advisory Board.
Sec. 104. Personnel; budgetary matters; seal of office.
Sec. 105. Transfers to the new Social Security Administration.
Sec. 106. Transition rules.
Sec. 107. Conforming amendments to titles II and XVI of the Social Security Act.
Sec. 108. Additional conforming amendments.
Sec. 109. Rules of construction.
Sec. 110. Effective dates.
TITLE II—PROGRAM IMPROVEMENTS RELATING TO OASDI AND SSI
Sec. 201. Restrictions on payment of benefits based on disability to substance abus-
ers.
Sec. 202. Commission on childhood disability.
Sec. 203. Regulations regarding completion of plans for achieving self-support.
Sec. 204. SSI eligibility for students temporarily abroad.
Sec. 205. Disregard of cost-of-living increases for continued eligibility for work in-
centives.
Sec. 206. Expansion of the authority of the Social Security Administration to pre-
vent, detect, and terminate fraudulent claims for OASDI and SSI bene-
fits.
Sec. 207. Disability review required for SSI recipients who are 18 years of age.
Sec. 208. Continuing disability reviews.
Sec. 209. Exemption from adjustment in pass-along requirements.
TITLE III—MISCELLANEOUS PROGRAM IMPROVEMENTS
Sec. 301. Issuance of physical documents in the form of bonds, notes, or certificates
to the social security trust funds.
Sec. 302. GAO study regarding telephone access to local offices of the Social Secu-
rity Administration.
Sec. 303. Expansion of State option to exclude service of election officials or election
workers from coverage.
Sec. 304. Use of social security numbers by States and local governments and Fed-
eral district courts for jury selection purposes.
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Sec. 305. Authorization for all States to extend coverage to State and local police
officers and firefighters under existing coverage agreements.
Sec. 306. Limited exemption for Canadian ministers from certain self-employment
tax liability.
Sec. 307. Exclusion of totalization benefits from the application of the windfall
elimination provision.
Sec. 308. Exclusion of military reservists from application of the government pen-
sion offset and windfall elimination provisions.
Sec. 309. Repeal of the facility-of-payment provision.
Sec. 310. Maximum family benefits in guarantee cases.
Sec. 311. Authorization for disclosure of social security information for purposes of
public or private epidemiological and similar research.
Sec. 312. Misuse of symbols, emblems, or names in reference to Social Security Ad-
ministration, Department of Health and Human Services, or Depart-
ment of the Treasury.
Sec. 313. Increased penalties for unauthorized disclosure of social security informa-
tion.
Sec. 314. Increase in authorized period for extension of time to file annual earnings
report.
Sec. 315. Extension of disability insurance program demonstration project author-
ity.
Sec. 316. Cross-matching of social security account number information and em-
ployer identification number information maintained by the Department
of Agriculture.
Sec. 317. Certain transfers to railroad retirement account made permanent.
Sec. 318. Authorization for use of social security account numbers by Department
of Labor in administration of Federal workers’ compensation laws.
Sec. 319. Coverage under FICA of Federal employees transferred temporarily to
international organizations.
Sec. 320. Extension of the FICA tax exemption and certain tax rules to individuals
who enter the United States under a visa issued under section 101 of
the Immigration and Nationality Act.
Sec. 321. Technical and clerical amendments.
TITLE I—ESTABLISHMENT OF THE SO-
CIAL SECURITY ADMINISTRATION AS
AN INDEPENDENT AGENCY
SEC. 101. ESTABLISHMENT OF SOCIAL SECURITY ADMINISTRATION AS
AN INDEPENDENT AGENCY.
Section 701 of the Social Security Act (42 U.S.C. 901) is
amended to read as follows:
‘‘SOCIAL SECURITY ADMINISTRATION
‘‘SEC. 701. (a) There is hereby established, as an independent
agency in the executive branch of the Government, a Social Security
Administration (in this title referred to as the ‘Administration’).
‘‘(b) It shall be the duty of the Administration to administer
the old-age, survivors, and disability insurance program under title
II and the supplemental security income program under title XVI.
SEC. 102. COMMISSIONER AND DEPUTY COMMISSIONER; OTHER OFFI-
CERS.
Section 702 of the Social Security Act (42 U.S.C. 902) is
amended to read as follows:
‘‘COMMISSIONER; DEPUTY COMMISSIONER; OTHER OFFICERS
‘‘Commissioner of Social Security
‘‘SEC. 702. (a)(1) There shall be in the Administration a
Commissioner of Social Security (in this title referred to as the
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‘Commissioner’) who shall be appointed by the President, by and
with the advice and consent of the Senate.
‘‘(2) The Commissioner shall be compensated at the rate pro-
vided for level I of the Executive Schedule.
‘‘(3) The Commissioner shall be appointed for a term of 6
years, except that the initial term of office for Commissioner shall
terminate January 19, 2001. In any case in which a successor
does not take office at the end of a Commissioner’s term of office,
such Commissioner may continue in office until the entry upon
office of such a successor. A Commissioner appointed to a term
of office after the commencement of such term may serve under
such appointment only for the remainder of such term. An individ-
ual serving in the office of Commissioner may be removed from
office only pursuant to a finding by the President of neglect of
duty or malfeasance in office.
‘‘(4) The Commissioner shall be responsible for the exercise
of all powers and the discharge of all duties of the Administration,
and shall have authority and control over all personnel and activi-
ties thereof.
‘‘(5) The Commissioner may prescribe such rules and regula-
tions as the Commissioner determines necessary or appropriate
to carry out the functions of the Administration. The regulations
prescribed by the Commissioner shall be subject to the rulemaking
procedures established under section 553 of title 5, United States
Code.
‘‘(6) The Commissioner may establish, alter, consolidate, or
discontinue such organizational units or components within the
Administration as the Commissioner considers necessary or appro-
priate, except that this paragraph shall not apply with respect
to any unit, component, or provision provided for by this Act.
‘‘(7) The Commissioner may assign duties, and delegate, or
authorize successive redelegations of, authority to act and to render
decisions, to such officers and employees of the Administration
as the Commissioner may find necessary. Within the limitations
of such delegations, redelegations, or assignments, all official acts
and decisions of such officers and employees shall have the same
force and effect as though performed or rendered by the Commis-
sioner.
‘‘(8) The Commissioner and the Secretary of Health and Human
Services (in this title referred to as the ‘Secretary’) shall consult,
on an ongoing basis, to ensure—
‘‘(A) the coordination of the programs administered by the
Commissioner, as described in section 701, with the programs
administered by the Secretary under titles XVIII and XIX of
this Act; and
‘‘(B) that adequate information concerning benefits under
such titles XVIII and XIX is available to the public.
‘‘Deputy Commissioner of Social Security
‘‘(b)(1) There shall be in the Administration a Deputy Commis-
sioner of Social Security (in this title referred to as the ‘Deputy
Commissioner’) who shall be appointed by the President, by and
with the advice and consent of the Senate.
‘‘(2) The Deputy Commissioner shall be appointed for a term
of 6 years, except that the initial term of office for the Deputy
Commissioner shall terminate January 19, 2001. In any case in
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which a successor does not take office at the end of a Deputy
Commissioner’s term of office, such Deputy Commissioner may con-
tinue in office until the entry upon office of such a successor.
A Deputy Commissioner appointed to a term of office after the
commencement of such term may serve under such appointment
only for the remainder of such term.
‘‘(3) The Deputy Commissioner shall be compensated at the
rate provided for level II of the Executive Schedule.
‘‘(4) The Deputy Commissioner shall perform such duties and
exercise such powers as the Commissioner shall from time to time
assign or delegate. The Deputy Commissioner shall be Acting
Commissioner of the Administration during the absence or disability
of the Commissioner and, unless the President designates another
officer of the Government as Acting Commissioner, in the event
of a vacancy in the office of the Commissioner.
‘‘Chief Financial Officer
‘‘(c) There shall be in the Administration a Chief Financial
Officer appointed by the Commissioner in accordance with section
901(a)(2) of title 31, United States Code.
‘‘Inspector General
‘‘(d) There shall be in the Administration an Inspector General
appointed by the President, by and with the advice and consent
of the Senate, in accordance with section 3(a) of the Inspector
General Act of 1978.’’.
SEC. 103. SOCIAL SECURITY ADVISORY BOARD.
Section 703 of the Social Security Act (42 U.S.C. 903) is
amended to read as follows:
‘‘SOCIAL SECURITY ADVISORY BOARD
‘‘Establishment of Board
‘‘SEC. 703. (a) There shall be established a Social Security
Advisory Board (in this section referred to as the ‘Board’).
‘‘Functions of the Board
‘‘(b) On and after the date the Commissioner takes office, the
Board shall advise the Commissioner on policies related to the
old-age, survivors, and disability insurance program under title
II and the supplemental security income program under title XVI.
Specific functions of the Board shall include—
‘‘(1) analyzing the Nation’s retirement and disability sys-
tems and making recommendations with respect to how the
old-age, survivors, and disability insurance program and the
supplemental security income program, supported by other pub-
lic and private systems, can most effectively assure economic
security;
‘‘(2) studying and making recommendations relating to the
coordination of programs that provide health security with pro-
grams described in paragraph (1);
‘‘(3) making recommendations to the President and to the
Congress with respect to policies that will ensure the solvency
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of the old-age, survivors, and disability insurance program,
both in the short-term and the long-term;
‘‘(4) making recommendations with respect to the quality
of service that the Administration provides to the public;
‘‘(5) making recommendations with respect to policies and
regulations regarding the old-age, survivors, and disability
insurance program and the supplemental security income pro-
gram;
‘‘(6) increasing public understanding of the social security
system;
‘‘(7) making recommendations with respect to a long-range
research and program evaluation plan for the Administration;
‘‘(8) reviewing and assessing any major studies of social
security as may come to the attention of the Board; and
‘‘(9) making recommendations with respect to such other
matters as the Board determines to be appropriate.
‘‘Structure and Membership of the Board
‘‘(c)(1) The Board shall be composed of 7 members who shall
be appointed as follows:
‘‘(A) 3 members shall be appointed by the President, by
and with the advice and consent of the Senate. Not more
than 2 of such members shall be from the same political party.
‘‘(B) 2 members (each member from a different political
party) shall be appointed by the President pro tempore of
the Senate with the advice of the Chairman and the Ranking
Minority Member of the Senate Committee on Finance.
‘‘(C) 2 members (each member from a different political
party) shall be appointed by the Speaker of the House of Rep-
resentatives, with the advice of the Chairman and the Ranking
Minority Member of the House Committee on Ways and Means.
‘‘(2) The members shall be chosen on the basis of their integrity,
impartiality, and good judgment, and shall be individuals who
are, by reason of their education, experience, and attainments,
exceptionally qualified to perform the duties of members of the
Board.
‘‘Terms of Appointment
‘‘(d) Each member of the Board shall serve for a term of 6
years, except that—
‘‘(1) a member appointed to a term of office after the
commencement of such term may serve under such appointment
only for the remainder of such term; and
‘‘(2) the terms of service of the members initially appointed
under this section shall begin on October 1, 1994, and expire
as follows:
‘‘(A) The terms of service of the members initially
appointed by the President shall expire as designated by
the President at the time of nomination, 1 each at the
end of—
‘‘(i) 2 years;
‘‘(ii) 4 years; and
‘‘(iii) 6 years.
‘‘(B) The terms of service of members initially
appointed by the President pro tempore of the Senate shall
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expire as designated by the President pro tempore of the
Senate at the time of nomination, 1 each at the end of—
‘‘(i) 3 years; and
‘‘(ii) 6 years.
‘‘(C) The terms of service of members initially
appointed by the Speaker of the House of Representatives
shall expire as designated by the Speaker of the House
of Representatives at the time of nomination, 1 each at
the end of—
‘‘(i) 4 years; and
‘‘(ii) 5 years.
‘‘Chairman
‘‘(e) A member of the Board shall be designated by the President
to serve as Chairman for a term of 4 years, coincident with the
term of the President, or until the designation of a successor.
‘‘Expenses and Per Diem
‘‘(f) Members of the Board shall serve without compensation,
except that, while serving on business of the Board away from
their homes or regular places of business, members may be allowed
travel expenses, including per diem in lieu of subsistence, as author-
ized by section 5703 of title 5, United States Code, for persons
in the Government employed intermittently.
‘‘Meetings
‘‘(g)(1) The Board shall meet at the call of the Chairman (in
consultation with the other members of the Board) not less than
4 times each year to consider a specific agenda of issues, as deter-
mined by the Chairman in consultation with the other members
of the Board.
‘‘(2) Four members of the Board (not more than 3 of whom
may be of the same political party) shall constitute a quorum
for purposes of conducting business.
‘‘Federal Advisory Committee Act
‘‘(h) The Board shall be exempt from the provisions of the
Federal Advisory Committee Act (5 U.S.C. App.).
‘‘Personnel
‘‘(i) The Board shall, without regard to the provisions of title
5, United States Code, relating to the competitive service, appoint
a Staff Director who shall be paid at a rate equivalent to a rate
established for the Senior Executive Service under section 5382
of title 5, United States Code. The Board shall appoint such addi-
tional personnel as the Board determines to be necessary to provide
adequate clerical support for the Board, and may compensate such
additional personnel without regard to the provisions of title 5,
United States Code, relating to the competitive service.
‘‘Authorization of Appropriations
‘‘(j) There are authorized to be appropriated, out of the Federal
Disability Insurance Trust Fund, the Federal Old-Age and Survivors
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Insurance Trust Fund, and the general fund of the Treasury, such
sums as are necessary to carry out the purposes of this section.’’.
SEC. 104. PERSONNEL; BUDGETARY MATTERS; SEAL OF OFFICE.
(a) IN GENERAL.—Section 704 of the Social Security Act (42
U.S.C. 904) is amended to read as follows:
‘‘ADMINISTRATIVE DUTIES OF THE COMMISSIONER
‘‘Personnel
‘‘SEC. 704. (a)(1) The Commissioner shall appoint such addi-
tional officers and employees as the Commissioner considers nec-
essary to carry out the functions of the Administration under this
Act, and attorneys and experts may be appointed without regard
to the civil service laws. Except as otherwise provided in the preced-
ing sentence or in any other provision of law, such officers and
employees shall be appointed, and their compensation shall be
fixed, in accordance with title 5, United States Code.
‘‘(2) The Commissioner may procure the services of experts
and consultants in accordance with the provisions of section 3109
of title 5, United States Code.
‘‘(3) Notwithstanding any requirements of section 3133 of title
5, United States Code, the Director of the Office of Personnel
Management shall authorize for the Administration a total number
of Senior Executive Service positions which is substantially greater
than the number of such positions authorized in the Social Security
Administration in the Department of Health and Human Services
as of immediately before the date of the enactment of the Social
Security Independence and Program Improvements Act of 1994
to the extent that the greater number of such authorized positions
is specified in the comprehensive work force plan as established
and revised by the Commissioner under subsection (b)(2). The total
number of such positions authorized for the Administration shall
not at any time be less than the number of such authorized positions
as of immediately before such date.
‘‘Budgetary Matters
‘‘(b)(1) The Commissioner shall prepare an annual budget for
the Administration, which shall be submitted by the President
to the Congress without revision, together with the President’s
annual budget for the Administration.
‘‘(2)(A) Appropriations requests for staffing and personnel of
the Administration shall be based upon a comprehensive work
force plan, which shall be established and revised from time to
time by the Commissioner.
‘‘(B) Appropriations for administrative expenses of the Adminis-
tration are authorized to be provided on a biennial basis.
‘‘Employment Restriction
‘‘(c) The total number of positions in the Administration (other
than positions established under section 702) which—
‘‘(1) are held by noncareer appointees (within the meaning
of section 3132(a)(7) of title 5, United States Code) in the
Senior Executive Service, or
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‘‘(2) have been determined by the President or the Office
of Personnel Management to be of a confidential, policy-deter-
mining, policy-making, or policy-advocating character and have
been excepted from the competitive service thereby,
may not exceed at any time the equivalent of 20 full-time positions.
‘‘Seal of Office
‘‘(d) The Commissioner shall cause a seal of office to be made
for the Administration of such design as the Commissioner shall
approve. Judicial notice shall be taken of such seal.
‘‘Data Exchanges
‘‘(e)(1) Notwithstanding any other provision of law (including
subsections (b), (o), (p), (q), (r), and (u) of section 552a of title
5, United States Code)—
‘‘(A) the Secretary shall disclose to the Commissioner any
record or information requested in writing by the Commissioner
for the purpose of administering any program administered
by the Commissioner, if records or information of such type
were disclosed to the Commissioner of Social Security in the
Department of Health and Human Services under applicable
rules, regulations, and procedures in effect before the date
of the enactment of the Social Security Independence and Pro-
gram Improvements Act of 1994; and
‘‘(B) the Commissioner shall disclose to the Secretary or
to any State any record or information requested in writing
by the Secretary to be so disclosed for the purpose of administer-
ing any program administered by the Secretary, if records
or information of such type were so disclosed under applicable
rules, regulations, and procedures in effect before the date
of the enactment of the Social Security Independence and Pro-
gram Improvements Act of 1994.
‘‘(2) The Commissioner and the Secretary shall enter into an
agreement under which the Commissioner provides the Secretary
data concerning the quality of the services and information provided
to beneficiaries of the programs under titles XVIII and XIX and
the administrative services provided by the Social Security Adminis-
tration in support of such programs. Such agreement shall stipulate
the type of data to be provided and the terms and conditions
under which the data are to be provided.
‘‘(3) The Commissioner and the Secretary shall periodically
review the need for exchanges of information not referred to in
paragraph (1) or (2) and shall enter into such agreements as may
be necessary and appropriate to provide information to each other
or to States in order to meet the programmatic needs of the request-
ing agencies.
‘‘(4)(A) Any disclosure from a system of records (as defined
in section 552a(a)(5) of title 5, United States Code) pursuant to
this subsection shall be made as a routine use under subsection
(b)(3) of section 552a of such title (unless otherwise authorized
under such section 552a).
‘‘(B) Any computerized comparison of records, including match-
ing programs, between the Commissioner and the Secretary shall
be conducted in accordance with subsections (o), (p), (q), (r), and
(u) of section 552a of title 5, United States Code.
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‘‘(5) The Commissioner and the Secretary shall each ensure
that timely action is taken to establish any necessary routine uses
for disclosures required under paragraph (1) or agreed to pursuant
to paragraph (3).’’.
(b) REPORT ON SES POSITIONS UNDER COMPREHENSIVE WORK
FORCE PLAN.—Within 60 days after the establishment by the
Commissioner of Social Security of the comprehensive work force
plan required under section 704(b)(2) of the Social Security Act
(as amended by this Act), the Director of the Office of Personnel
Management shall transmit to the Committee on Ways and Means
of the House of Representatives and the Committee on Finance
of the Senate a report specifying the total number of Senior Execu-
tive Services positions authorized for the Social Security Adminis-
tration in connection with such work force plan.
(c) EFFECTIVE DATE AND TRANSITION RULE FOR CERTAIN DATA
EXCHANGE PROVISIONS.—
(1) EFFECTIVE DATE.—Section 704(e)(4) of the Social Secu-
rity Act (as amended by subsection (a)) shall take effect March
31, 1996.
(2) TRANSITION RULE.—Notwithstanding any other provi-
sion of law (including subsections (b), (o), (p), (q), (r), and
(u) of section 552a of title 5, United States Code), arrangements
for disclosure of records or other information, and arrangements
for computer matching of records, which were in effect imme-
diately before the date of the enactment of this Act between
the Social Security Administration in the Department of Health
and Human Services and other components of such Department
may continue between the Social Security Administration estab-
lished under section 701 of the Social Security Act (as amended
by this Act) and such Department during the period beginning
on the date of the enactment of this Act and ending March
31, 1996.
SEC. 105. TRANSFERS TO THE NEW SOCIAL SECURITY ADMINISTRA-
TION.
(a) FUNCTIONS.—
(1) IN GENERAL.—There are transferred to the Social Secu-
rity Administration all functions of the Secretary of Health
and Human Services with respect to or in support of the pro-
grams and activities the administration of which is vested
in the Social Security Administration by reason of this title
and the amendments made thereby. The Commissioner of Social
Security shall allocate such functions in accordance with sec-
tions 701, 702, 703, and 704 of the Social Security Act (as
amended by this title).
(2) FUNCTIONS OF OTHER AGENCIES.—
(A) IN
GENERAL.—Subject to subparagraph (B), the
Social Security Administration shall also perform—
(i) the functions of the Department of Health and
Human Services, including functions relating to titles
XVIII and XIX of the Social Security Act (including
adjudications, subject to final decisions by the Sec-
retary of Health and Human Services), that the Social
Security Administration in such Department performed
as of immediately before the date of the enactment
of this Act, and
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(ii) the functions of any other agency for which
administrative responsibility was vested in the Social
Security Administration in the Department of Health
and Human Services as of immediately before the date
of the enactment of this Act.
(B) RULES
GOVERNING
CONTINUATION
OF
FUNCTIONS
IN THE ADMINISTRATION.—The Social Security Administra-
tion shall perform, on behalf of the Secretary of Health
and Human Services (or the head of any other agency,
as applicable), the functions described in subparagraph
(A) in accordance with the same financial and other terms
in effect on the day before the date of the enactment
of this Act, except to the extent that the Commissioner
and the Secretary (or other agency head, as applicable)
agree to alter such terms pertaining to any such function
or to terminate the performance by the Social Security
Administration of any such function.
(b) PERSONNEL, ASSETS, ETC.—
(1) IN GENERAL.—There are transferred from the Depart-
ment of Health and Human Services to the Social Security
Administration, for appropriate allocation by the Commissioner
of Social Security in the Social Security Administration—
(A) the personnel employed in connection with the
functions transferred by this title and the amendments
made thereby; and
(B) the assets, liabilities, contracts, property, records,
and unexpended balance of appropriations, authorizations,
allocations, and other funds employed, held, or used in
connection with such functions, arising from such functions,
or available, or to be made available, in connection with
such functions.
(2) UNEXPENDED
FUNDS.—Unexpended funds transferred
pursuant to this subsection shall be used only for the purposes
for which the funds were originally appropriated.
(3) EMPLOYMENT PROTECTIONS.—
(A) IN GENERAL.—During the 1-year period beginning
March 31, 1995—
(i) the transfer pursuant to this section of any
full-time personnel (except special Government employ-
ees) and part-time personnel holding permanent posi-
tions shall not cause any such personnel to be
separated or reduced in grade or compensation solely
as a result of such transfer, and
(ii) except as provided in subparagraph (B), any
such personnel who were not employed in the Social
Security Administration in the Department of Health
and Human Services immediately before the date of
the enactment of this Act shall not be subject to
directed reassignment to a duty station outside their
commuting area.
(B) SPECIAL RULES.—
(i) In the case of personnel whose duty station
is in the Washington, District of Columbia, commuting
area immediately before March 31, 1995, subparagraph
(A)(ii) shall not apply with respect to directed reassign-
ment to a duty station in the Baltimore, Maryland,
commuting area after September 30, 1995.
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(ii) In the case of personnel whose duty station
is in the Baltimore, Maryland, commuting area imme-
diately before March 31, 1995, subparagraph (A)(ii)
shall not apply with respect to directed reassignment
to a duty station in the Washington, District of Colum-
bia, commuting area after September 30, 1995.
(4) OFFICE SPACE.—Notwithstanding section 7 of the Public
Buildings Act of 1959 (40 U.S.C. 606), and subject to available
appropriations, the Administrator of General Services may,
after consultation with the Commissioner of Social Security
and under such terms and conditions as the Administrator
finds to be in the interests of the United States—
(A) acquire occupiable space in the metropolitan area
of Washington, District of Columbia, for housing the Social
Security Administration, and
(B) renovate such space as necessary.
(c) INTER-AGENCY TRANSFER ARRANGEMENT.—The Secretary of
Health and Human Services and the Commissioner of Social Secu-
rity shall enter into a written inter-agency transfer arrangement
(in this subsection referred to as the ‘‘arrangement’’), which shall
be effective March 31, 1995. Transfers made pursuant to this section
shall be in accordance with the arrangement, which shall specify
the personnel and resources to be transferred as provided under
this section. The terms of such arrangement shall be transmitted
not later than January 1, 1995, to the Committee on Ways and
Means of the House of Representatives, to the Committee on
Finance of the Senate, and to the Comptroller General of the
United States. Not later than February 15, 1995, the Comptroller
General shall submit a report to each such Committee setting
forth an evaluation of such arrangement.
SEC. 106. TRANSITION RULES.
(a) TRANSITION RULES RELATING TO OFFICERS OF THE SOCIAL
SECURITY ADMINISTRATION.—
(1) APPOINTMENT OF INITIAL COMMISSIONER OF SOCIAL SECU-
RITY.—The President shall nominate for appointment the initial
Commissioner of Social Security to serve as head of the Social
Security Administration established under section 701 of the
Social Security Act (as amended by this Act) not later than
60 days after the date of the enactment of this Act.
(2) ASSUMPTION
OF
OFFICE
OF
INITIAL
COMMISSIONER
BEFORE EFFECTIVE DATE OF NEW AGENCY.—If the appointment
of the initial Commissioner of Social Security pursuant to sec-
tion 702 of the Social Security Act (as amended by this Act)
is confirmed by the Senate pursuant to such section 702 before
March 31, 1995, the individual shall take office as Commis-
sioner immediately upon confirmation, and, until March 31,
1995, such Commissioner shall perform the functions of the
Commissioner of Social Security in the Department of Health
and Human Services.
(3) TREATMENT OF INSPECTOR GENERAL AND OTHER APPOINT-
MENTS.—At any time on or after the date of the enactment
of this Act, any of the officers provided for in section 702
of the Social Security Act (as amended by this title) and any
of the members of the Social Security Advisory Board provided
for in section 703 of such Act (as so amended) may be nominated
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and take office, under the terms and conditions set out in
such sections.
(4) COMPENSATION FOR INITIAL OFFICERS AND BOARD MEM-
BERS BEFORE EFFECTIVE DATE OF NEW AGENCY.—Funds avail-
able to any official or component of the Department of Health
and Human Services, functions of which are transferred to
the Commissioner of Social Security or the Social Security
Administration by this title, may, with the approval of the
Director of the Office of Management and Budget, be used
to pay the compensation and expenses of any officer or employee
of the new Social Security Administration and of any member
or staff of the Social Security Advisory Board who takes office
pursuant to this subsection before March 31, 1995, until such
time as funds for that purpose are otherwise available.
(5) INTERIM ROLE OF CURRENT COMMISSIONER AFTER EFFEC-
TIVE DATE OF NEW AGENCY.—In the event that, as of March
31, 1995, an individual appointed to serve as the initial
Commissioner of Social Security has not taken office, until
such initial Commissioner has taken office, the officer serving
on March 31, 1995, as Commissioner of Social Security (or
Acting Commissioner of Social Security, if applicable) in the
Department of Health and Human Services shall, while continu-
ing to serve as such Commissioner of Social Security (or Acting
Commissioner of Social Security), serve as Commissioner of
Social Security (or Acting Commissioner of Social Security,
respectively) in the Social Security Administration established
under such section 701 and shall assume the powers and duties
under such Act (as amended by this Act) of the Commissioner
of Social Security in the Social Security Administration as
so established under such section 701. In the event that, as
of March 31, 1995, the President has not nominated an individ-
ual for appointment to the office of Commissioner of Social
Security in the Social Security Administration established
under such section 701, then the individual serving as Commis-
sioner of Social Security (or Acting Commissioner of Social
Security, if applicable) in the Department of Health and Human
Services shall become the Acting Commissioner of Social Secu-
rity in the Social Security Administration as so established
under such section 701.
(6) INTERIM
INSPECTOR
GENERAL.—The Commissioner of
Social Security may appoint an individual to assume the powers
and duties under the Inspector General Act of 1978 of Inspector
General of the Social Security Administration as established
under section 701 of the Social Security Act for a period not
to exceed 60 days. The Inspector General of the Department
of Health and Human Services may, when so requested by
the Commissioner, while continuing to serve as Inspector Gen-
eral in such Department, serve as Inspector General of the
Social Security Administration established under such section
701 and shall assume the powers and duties under the Inspec-
tor General Act of 1978 of Inspector General of the Social
Security Administration as established under such section 701.
The Social Security Administration shall reimburse the Office
of Inspector General of the Department of Health and Human
Services for costs of any functions performed pursuant to this
subsection, from funds available to the Administration at the
time the functions are performed. The authority under this
H. R. 4277—13
paragraph to exercise the powers and duties of the Inspector
General shall terminate upon the entry upon office of an Inspec-
tor General for the Social Security Administration under the
Inspector General Act of 1978.
(7) ABOLISHMENT OF OFFICE OF COMMISSIONER OF SOCIAL
SECURITY IN THE DEPARTMENT OF HEALTH AND HUMAN SERV-
ICES.—Effective when the initial Commissioner of Social Secu-
rity of the Social Security Administration established under
section 701 of the Social Security Act (as amended by this
title) takes office pursuant to section 702 of such Act (as so
amended)—
(A) the position of Commissioner of Social Security
in the Department of Health and Human Services is abol-
ished; and
(B) section 5315 of title 5, United States Code, is
amended by striking the following:
‘‘Commissioner of Social Security, Department of Health
and Human Services.’’.
(b) CONTINUATION OF ORDERS, DETERMINATIONS, RULES, REGU-
LATIONS, ETC.—All orders, determinations, rules, regulations, per-
mits, contracts, collective bargaining agreements (and ongoing
negotiations relating to such collective bargaining agreements),
recognitions of labor organizations, certificates, licenses, and privi-
leges—
(1) which have been issued, made, promulgated, granted,
or allowed to become effective, in the exercise of functions
(A) which were exercised by the Secretary of Health and Human
Services (or the Secretary’s delegate), and (B) which relate
to functions which, by reason of this title, the amendments
made thereby, and regulations prescribed thereunder, are
vested in the Commissioner of Social Security; and
(2) which are in effect immediately before March 31, 1995,
shall (to the extent that they relate to functions described in para-
graph (1)(B)) continue in effect according to their terms until
modified, terminated, suspended, set aside, or repealed by such
Commissioner, except that any collective bargaining agreement
shall remain in effect until the date of termination specified in
such agreement.
(c) CONTINUATION
OF PROCEEDINGS.—The provisions of this
title (including the amendments made thereby) shall not affect
any proceeding pending before the Secretary of Health and Human
Services immediately before March 31, 1995, with respect to func-
tions vested (by reason of this title, the amendments made thereby,
and regulations prescribed thereunder) in the Commissioner of
Social Security, except that such proceedings, to the extent that
such proceedings relate to such functions, shall continue before
such Commissioner. Orders shall be issued under any such proceed-
ing, appeals taken therefrom, and payments shall be made pursuant
to such orders, in like manner as if this title had not been enacted,
and orders issued in any such proceeding shall continue in effect
until modified, terminated, superseded, or repealed by such
Commissioner, by a court of competent jurisdiction, or by operation
of law.
(d) CONTINUATION OF SUITS.—Except as provided in this sub-
section—
(1) the provisions of this title shall not affect suits com-
menced before March 31, 1995; and
H. R. 4277—14
(2) in all such suits proceedings shall be had, appeals
taken, and judgments rendered, in the same manner and effect
as if this title had not been enacted.
No cause of action, and no suit, action, or other proceeding com-
menced by or against any officer in such officer’s official capacity
as an officer of the Department of Health and Human Services,
shall abate by reason of the enactment of this title. In any suit,
action, or other proceeding pending immediately before March 31,
1995, the court or hearing officer may at any time, on the motion
of the court or hearing officer or that of a party, enter an order
which will give effect to the provisions of this subsection (including,
where appropriate, an order for substitution of parties).
(e) CONTINUATION
OF PENALTIES.—This title shall not have
the effect of releasing or extinguishing any civil or criminal prosecu-
tion, penalty, forfeiture, or liability incurred as a result of any
function which (by reason of this title, the amendments made
thereby, and regulations prescribed thereunder) is vested in the
Commissioner of Social Security.
(f) JUDICIAL REVIEW.—Orders and actions of the Commissioner
of Social Security in the exercise of functions vested in such
Commissioner under this title and the amendments made thereby
(other than functions performed pursuant to 105(a)(2)) shall be
subject to judicial review to the same extent and in the same
manner as if such orders had been made and such actions had
been taken by the Secretary of Health and Human Services in
the exercise of such functions immediately before March 31, 1995.
Any statutory requirements relating to notice, hearings, action upon
the record, or administrative review that apply to any function
so vested in such Commissioner shall continue to apply to the
exercise of such function by such Commissioner.
(g) EXERCISE OF FUNCTIONS.—In the exercise of the functions
vested in the Commissioner of Social Security under this title,
the amendments made thereby, and regulations prescribed there-
under, such Commissioner shall have the same authority as that
vested in the Secretary of Health and Human Services with respect
to the exercise of such functions immediately preceding the vesting
of such functions in such Commissioner, and actions of such
Commissioner shall have the same force and effect as when exer-
cised by such Secretary.
SEC. 107. CONFORMING AMENDMENTS TO TITLES II AND XVI OF THE
SOCIAL SECURITY ACT.
(a) IN GENERAL.—Title II of the Social Security Act (42 U.S.C.
401 et seq.) (other than section 201, section 231(c), section 226,
and section 226A) and title XVI of such Act (42 U.S.C. 1382 et
seq.) (other than section 1614(f)(2)(B)) are each amended—
(1) by striking, wherever it appears, ‘‘Secretary of Health
and Human Services’’ and inserting ‘‘Commissioner of Social
Security’’;
(2) by striking, wherever it appears, ‘‘Department of Health
and Human Services’’ and inserting ‘‘Social Security Adminis-
tration’’;
(3) by striking, wherever it appears, ‘‘Department’’ (but
only if it is not immediately succeeded by the words ‘‘of Health
and Human Services’’, and only if it is used in reference to
the Department of Health and Human Services) and inserting
‘‘Administration’’; and
H. R. 4277—15
(4) by striking, wherever it appears, each of the following
words (but, in the case of any such word only if such word
refers to the Secretary of Health and Human Services): ‘‘Sec-
retary’’, ‘‘Secretary’s’’, ‘‘his’’, ‘‘him’’, ‘‘he’’, ‘‘her’’, and ‘‘she’’, and
inserting (in the case of the word ‘‘Secretary’’) ‘‘Commissioner
of Social Security’’, (in the case of the word ‘‘Secretary’s’’)
‘‘Commissioner’s’’, (in the case of the word ‘‘his’’) ‘‘the Commis-
sioner’s’’, (in the case of the word ‘‘him’’) ‘‘the Commissioner’’,
(in the case of the word ‘‘her’’) ‘‘the Commissioner’’ or ‘‘the
Commissioner’s’’, as may be appropriate, and (in the case of
the words ‘‘she’’ or ‘‘he’’) ‘‘the Commissioner’’.
(b) AMENDMENTS TO SECTION 201.—
(1) Subsections (a)(3), (a)(4), (b)(1), and (b)(2) of section
201 of such Act (42 U.S.C. 401) are amended by striking ‘‘Sec-
retary of Health and Human Services’’ and inserting ‘‘Commis-
sioner of Social Security’’.
(2) Subsections (a)(3) and (b)(1) of section 201 of such
Act (42 U.S.C. 401) are amended by striking ‘‘such Secretary’’
and inserting ‘‘such Commissioner’’.
(3) Section 201(c) of such Act (42 U.S.C. 401(c)) is
amended—
(A) in the first sentence, by inserting ‘‘the Commis-
sioner of Social Security,’’ before ‘‘the Secretary of the
Treasury’’; and
(B) in the fifth sentence, by striking ‘‘Commissioner
of Social Security’’ and inserting ‘‘Deputy Commissioner
of Social Security’’.
(4) Section 201(g)(1)(A) of such Act (42 U.S.C. 401(g)(1)(A))
is amended—
(A) in clause (i), by striking ‘‘by him and the Secretary
of Health and Human Services’’ and inserting ‘‘by the Man-
aging Trustee, the Commissioner of Social Security, and
the Secretary of Health and Human Services’’, and by
striking ‘‘by the Department of Health and Human Services
and the Treasury Department for the administration of
titles II, XVI, and XVIII of this Act’’ and inserting ‘‘by
the Department of Health and Human Services for the
administration of title XVIII of this Act, and by the Depart-
ment of the Treasury for the administration of titles II
and XVIII of this Act’’;
(B) in clause (ii), by striking ‘‘method prescribed by
the Board of Trustees under paragraph (4)’’ and inserting
‘‘applicable method prescribed under paragraph (4)’’, by
striking ‘‘the Secretary of Health and Human Services’’
and inserting ‘‘the Commissioner of Social Security’’, and
by striking ‘‘the Department of Health and Human Serv-
ices’’ and inserting ‘‘the Social Security Administration’’;
and
(C) in the matter following clause (ii), by striking ‘‘titles
II, XVI, and XVIII’’ in the first sentence and inserting
‘‘titles II and XVIII’’, and by striking the last sentence
and inserting the following: ‘‘There are hereby authorized
to be made available for expenditure, out of any or all
of the Trust Funds, such amounts as the Congress may
deem appropriate to pay the costs of the part of the
administration of this title, title XVI, and title XVIII for
which the Commissioner of Social Security is responsible,
H. R. 4277—16
the costs of title XVIII for which the Secretary of Health
and Human Services is responsible, and the costs of carry-
ing out the functions of the Social Security Administration,
specified in section 232, which relate to the administration
of provisions of the Internal Revenue Code of 1986 other
than those referred to in clause (i) of the first sentence
of this subparagraph.’’.
(4)(A) Section 201(g)(1) of such Act (42 U.S.C. 401(g)(1))
is further amended by striking subparagraph (B) and inserting
the following new subparagraphs:
‘‘(B) After the close of each fiscal year—
‘‘(i) the Commissioner of Social Security shall determine—
‘‘(I) the portion of the costs, incurred during such fiscal
year, of administration of this title, title XVI, and title
XVIII for which the Commissioner is responsible and of
carrying out the functions of the Social Security Adminis-
tration, specified in section 232, which relate to the
administration of provisions of the Internal Revenue Code
of 1986 (other than those referred to in clause (i) of the
first sentence of subparagraph (A)), which should have
been borne by the general fund of the Treasury,
‘‘(II) the portion of such costs which should have been
borne by the Federal Old-Age and Survivors Insurance
Trust Fund,
‘‘(III) the portion of such costs which should have been
borne by the Federal Disability Insurance Trust Fund,
‘‘(IV) the portion of such costs which should have been
borne by the Federal Hospital Insurance Trust Fund, and
‘‘(V) the portion of such costs which should have been
borne by the Federal Supplementary Medical Insurance
Trust Fund, and
‘‘(ii) the Secretary of Health and Human Services shall
determine—
‘‘(I) the portion of the costs, incurred during such fiscal
year, of the administration of title XVIII for which the
Secretary is responsible, which should have been borne
by the general fund of the Treasury,
‘‘(II) the portion of such costs which should have been
borne by the Federal Hospital Insurance Trust Fund, and
‘‘(III) the portion of such costs which should have been
borne by the Federal Supplementary Medical Insurance
Trust Fund.
‘‘(C) After the determinations under subparagraph (B) have
been made for any fiscal year, the Commisioner of Social Security
and the Secretary shall each certify to the Managing Trustee the
amounts, if any, which should be transferred from one to any
of the other such Trust Funds and the amounts, if any, which
should be transferred between the Trust Funds (or one of the
Trust Funds) and the general fund of the Treasury, in order to
ensure that each of the Trust Funds and the general fund of
the Treasury have borne their proper share of the costs, incurred
during such fiscal year, for—
‘‘(i) the parts of the administration of this title, title XVI,
and title XVIII for which the Commissioner of Social Security
is responsible,
‘‘(ii) the parts of the administration of title XVIII for which
the Secretary is responsible, and
H. R. 4277—17
‘‘(iii) carrying out the functions of the Social Security
Administration, specified in section 232, which relate to the
administration of provisions of the Internal Revenue Code of
1986 (other than those referred to in clause (i) of the first
sentence of subparagraph (A)).
The Managing Trustee shall transfer any such amounts in accord-
ance with any certification so made.
‘‘(D) The determinations required under subclauses (IV) and
(V) of subparagraph (B)(i) shall be made in accordance with the
cost allocation methodology in existence on the date of the enact-
ment of the Social Security Independence and Program Improve-
ments Act of 1994, until such time as the methodology for making
the determinations required under such subclauses is revised by
agreement of the Commissioner and the Secretary, except that
the determination of the amounts to be borne by the general fund
of the Treasury with respect to expenditures incurred in carrying
out the functions of the Social Security Administration specified
in section 232 shall be made pursuant to the applicable method
prescribed under paragraph (4).’’.
(5) Section 201(g)(2) of such Act (42 U.S.C. 401(g)(2)) is
amended, in the second sentence, by striking ‘‘established and
maintained by the Secretary of Health and Human Services’’
and inserting ‘‘maintained by the Commissioner of Social Secu-
rity’’, and by striking ‘‘Secretary shall furnish’’ and inserting
‘‘Commissioner of Social Security shall furnish’’.
(6) Section 201(g)(4) of such Act (42 U.S.C. 401(g)(4)) is
amended to read as follows:
‘‘(4) The Commissioner of Social Security shall utilize the
method prescribed pursuant to this paragraph, as in effect imme-
diately before the date of the enactment of the Social Security
Independence and Program Improvements Act of 1994, for determin-
ing the costs which should be borne by the general fund of the
Treasury of carrying out the functions of the Commissioner, speci-
fied in section 232, which relate to the administration of provisions
of the Internal Revenue Code of 1986 (other than those referred
to in clause (i) of the first sentence of paragraph (1)(A)). If at
any time or times thereafter the Boards of Trustees of such Trust
Funds consider such action advisable, they may modify the method
of determining such costs.’’.
(7) Section 201(i)(1) of such Act (42 U.S.C. 401(i)(1)) is
amended to read as follows:
‘‘(i)(1) The Managing Trustee may accept on behalf of the United
States money gifts and bequests made unconditionally to the Fed-
eral Old-Age and Survivors Insurance Trust Fund, the Federal
Disability Insurance Trust Fund, the Federal Hospital Insurance
Trust Fund, or the Federal Supplementary Medical Insurance Trust
Fund or to the Social Security Administration, the Department
of Health and Human Services, or any part or officer thereof,
for the benefit of any of such Funds or any activity financed through
such Funds.’’.
(8) Subsections (j) and (k) of section 201 of such Act (42
U.S.C. 401) are each amended by striking ‘‘Secretary’’ each
place it appears and inserting ‘‘Commissioner of Social Secu-
rity’’.
(9) Section 201(l)(3)(B)(iii)(II) of such Act (42 U.S.C.
401(l)(3)(B)(iii)(II)) is amended by striking ‘‘Secretary’’ and
inserting ‘‘Commissioner of Social Security’’.
H. R. 4277—18
(10) Section 201(m)(3) of such Act (42 U.S.C. 401(m)(3))
is amended by striking ‘‘Secretary of Health and Human Serv-
ices’’ and inserting ‘‘Commissioner of Social Security’’.
(c) AMENDMENT TO SECTION 231.—Section 231(c) of such Act
(42 U.S.C. 431(c)) is amended by striking ‘‘Secretary determines’’
and inserting ‘‘Commissioner of Social Security and the Secretary
jointly determine’’.
SEC. 108. ADDITIONAL CONFORMING AMENDMENTS.
(a) AMENDMENTS TO TITLE VII.—
(1) Title VII of the Social Security Act (42 U.S.C. 901
et seq.) is amended by adding at the end the following new
section:
‘‘DUTIES AND AUTHORITY OF SECRETARY
‘‘SEC. 712. The Secretary shall perform the duties imposed
upon the Secretary by this Act. The Secretary is authorized to
appoint and fix the compensation of such officers and employees,
and to make such expenditures as may be necessary for carrying
out the functions of the Secretary under this Act. The Secretary
may appoint attorneys and experts without regard to the civil
service laws.’’.
(2) Section 706 of such Act (42 U.S.C. 907) is repealed.
This paragraph shall not apply with respect to the Advisory
Council for Social Security appointed in 1994.
(3) Paragraph (2) of section 709(b) of such Act (42 U.S.C.
910(b)) is amended by striking ‘‘(as estimated by the Secretary)’’
and inserting ‘‘(for amounts which will be paid from the Federal
Old-Age and Survivors Insurance Trust Fund and the Federal
Disability Insurance Trust Fund, as estimated by the Commis-
sioner, and for amounts which will be paid from the Federal
Hospital Insurance Trust and the Federal Supplementary Medi-
cal Insurance Trust Fund, as estimated by the Secretary)’’.
(b) AMENDMENTS TO TITLE XI.—
(1) Section 1101(a) of such Act (42 U.S.C. 1301(a)) is
amended by adding at the end the following new paragraph:
‘‘(10) The term ‘Administration’ means the Social Security
Administration, except where the context requires otherwise.’’.
(2) Section 1106(a) of such Act (42 U.S.C. 1306(a)) is
amended—
(A) by inserting ‘‘(1)’’ after ‘‘(a)’’;
(B) by striking ‘‘Department of Health and Human
Services’’ each place it appears and inserting ‘‘applicable
agency’’;
(C) by striking ‘‘Secretary’’ each place it appears and
inserting ‘‘head of the applicable agency’’; and
(D) by adding at the end the following new paragraph:
‘‘(2) For purposes of this subsection and subsection (b), the
term ‘applicable agency’ means—
‘‘(A) the Social Security Administration, with respect to
matter transmitted to or obtained by such Administration or
matter disclosed by such Administration, or
‘‘(B) the Department of Health and Human Services, with
respect to matter transmitted to or obtained by such Depart-
ment or matter disclosed by such Department.’’.
(3) Section 1106(b) of such Act (42 U.S.C. 1306(b)) is
amended—
H. R. 4277—19
(A) by striking ‘‘Secretary’’ each place it appears and
inserting ‘‘head of the applicable agency’’; and
(B) by striking ‘‘Department of Health and Human
Services’’ and inserting ‘‘applicable agency’’.
(4) Section 1106(c) of such Act (42 U.S.C. 1306(c)) is
amended—
(A) by striking ‘‘the Secretary’’ the first place it appears
and inserting ‘‘the Commissioner of Social Security or the
Secretary’’; and
(B) by striking ‘‘the Secretary’’ each subsequent place
it appears and inserting ‘‘such Commissioner or Secretary’’.
(5) Section 1106(d) of such Act (added by section 311 of
this Act) is amended—
(A) by striking ‘‘Secretary’’ the first place it appears
and inserting ‘‘Commissioner of Social Security’’;
(B) by striking ‘‘Secretary’’ the second place it appears
and inserting ‘‘Commissioner’’;
(C) by striking ‘‘Secretary’’ the third place it appears
and inserting ‘‘Commissioner in consultation with the Sec-
retary of Health and Human Services’’; and
(D) by striking ‘‘Secretary’’ each subsequent place it
appears and inserting ‘‘Commissioner’’.
(6) Section 1107(b) of such Act (42 U.S.C. 1307(b)) is
amended by striking ‘‘the Secretary of Health and Human
Services’’ and inserting ‘‘the Commissioner of Social Security
or the Secretary’’.
(7) Section 1110 of such Act (42 U.S.C. 1310) is amended—
(A) by striking ‘‘he’’, ‘‘his’’, and ‘‘him’’ each place they
appear (except in subsection (b)(2)(A)) and inserting ‘‘the
Commissioner’’, ‘‘the Commissioner’s’’, and ‘‘the Commis-
sioner’’, respectively;
(B) in subsection (a)(2), by inserting ‘‘(or the Commis-
sioner, with respect to any jointly financed cooperative
agreement or grant concerning titles II or XVI)’’ after ‘‘Sec-
retary’’;
(C) in subsection (b)(1)—
(i) by striking ‘‘Secretary’’ each place it appears
in the first two sentences and inserting ‘‘Commis-
sioner’’;
(ii) by striking in the third sentence ‘‘determined
by the Secretary,’’ and inserting ‘‘determined by the
Commissioner with respect to the old-age, survivors,
and disability insurance programs under title II and
the supplemental security income program under title
XVI, and by the Secretary with respect to other titles
of this Act,’’; and
(iii) by striking the fourth sentence and inserting
the following new sentences: ‘‘If, in order to carry out
a project under this subsection, the Commissioner
requests a State to make supplementary payments
(or the Commissioner makes them pursuant to an
agreement under section 1616) to individuals who are
not eligible therefor, or in amounts or under cir-
cumstances in which the State does not make such
payments, the Commissioner shall reimburse such
State for the non-Federal share of such payments from
amounts appropriated to carry out title XVI. If, in
H. R. 4277—20
order to carry out a project under this subsection,
the Secretary requests a State to provide medical
assistance under its plan approved under title XIX
to individuals who are not eligible therefor, or in
amounts or under circumstances in which the State
does not provide such medical assistance, the Secretary
shall reimburse such State for the non-Federal share
of such assistance from amounts appropriated to carry
out title XVI, which shall be provided by the Commis-
sioner to the Secretary for this purpose.’’;
(D) in subsection (b)(2), by striking ‘‘Secretary’’ each
place it appears and inserting ‘‘Commissioner’’; and
(E) in subsection (b), by striking paragraph (3).
(8) Subsections (b) and (c) of section 1127 of such Act
(42 U.S.C. 1320a–6) are each amended by striking ‘‘Secretary’’
and inserting ‘‘Commissioner of Social Security’’.
(9) Section 1128(f) of such Act (42 U.S.C. 1320a–7(f)) is
amended—
(A) in paragraph (1), by inserting after ‘‘section 205(g)’’
the following: ‘‘, except that, in so applying such sections
and section 205(l), any reference therein to the Commis-
sioner of Social Security or the Social Security Administra-
tion shall be considered a reference to the Secretary or
the Department of Health and Human Services, respec-
tively’’, and
(B) in paragraph (3), by inserting after ‘‘title II’’ the
following: ‘‘, except that, in so applying such section and
section 205(l), any reference therein to the Commissioner
of Social Security shall be considered a reference to the
Secretary’’.
(10)(A) Section 1129 of such Act (added by section 206(b)
of this Act) is amended—
(i) by striking ‘‘Secretary’’ each place it appears and
inserting ‘‘Commissioner of Social Security’’;
(ii) in subsection (a)(1)—
(I) by striking ‘‘exclude, as provided in section
1128,’’ and inserting ‘‘recommend that the Secretary
exclude, as provided in section 1128,’’; and
(II) by striking ‘‘and to direct’’ and all that follows
through ‘‘determines’’;
(iii) in subsection (g)—
(I) 
by 
striking 
‘‘Secretary’s’’ 
and 
inserting
‘‘Commissioner’s’’; and
(II) by striking ‘‘the provisions’’ and all that follows
and inserting the following: ‘‘the Commissioner shall
notify the Secretary of the final determination and
the reasons therefor, and the Secretary shall then
notify the entities described in section 1128A(h) of
such final determination.’’;
(iv) in subsection (k), by inserting ‘‘based on a rec-
ommendation under subsection (a)’’ after ‘‘section 1128’’;
and
(v) in subsection (l) (added by section 206(e)(1)), by
striking ‘‘Department of Health and Human Services’’ and
inserting ‘‘Social Security Administration’’.
(B) Section 206(g) of this Act is amended—
H. R. 4277—21
(i) by striking ‘‘Secretary of Health and Human Serv-
ices’’ and inserting ‘‘Commissioner of Social Security’’; and
(ii) by striking ‘‘Secretary has exercised’’ and inserting
‘‘Commissioner has exercised’’.
(11) Section 1131 of such Act (42 U.S.C. 1320b–1) is
amended—
(A) by striking ‘‘Secretary’’ each place it appears and
inserting ‘‘Commissioner of Social Security’’;
(B) in subsection (a)(1)(A), by adding ‘‘or’’ at the end;
(C) in subsection (a)(1)(B), by striking ‘‘or’’ at the end;
(D) by striking subsection (a)(1)(C);
(E) by redesignating subsection (a)(2) as subsection
(a)(3);
(F) by inserting after subsection (a)(1) the following
new paragraph:
‘‘(2) the Secretary makes a finding of fact and a decision as
to the entitlement under section 226 of any individual to hospital
insurance benefits under part A of title XVIII, or’’; and
(G) in the matter in subsection (a) following paragraph
(3) (as so redesignated), by striking ‘‘he’’ and inserting
‘‘the Commissioner of Social Security’’, by striking ‘‘para-
graph (1)’’ and inserting ‘‘paragraph (1) or (2)’’, by striking
‘‘paragraph (2)’’ and inserting ‘‘paragraph (3)’’, and by strik-
ing ‘‘paragraph (1) or (2)(A)’’ and inserting ‘‘paragraph (1),
(2), or (3)(A)’’.
(12) Section 1140 of such Act (42 U.S.C. 1320b–10) (as
amended by section 312 of this Act) is amended—
(A) in subsection (a)(2)—
(i) by inserting ‘‘(A)’’ after ‘‘(2)’’;
(ii) by striking ‘‘or of the Department of Health
and Human Services’’;
(iii) by striking ‘‘which the Secretary shall pre-
scribe’’ and inserting ‘‘which the Commissioner of
Social Security shall prescribe’’; and
(iv) by adding at the end the following new
subparagraph:
‘‘(B) No person may, for a fee, reproduce, reprint, or distribute
any item consisting of a form, application, or other publication
of the Department of Health and Human Services unless such
person has obtained specific, written authorization for such activity
in accordance with regulations which the Secretary shall prescribe.’’;
(B) in subsection (b), by striking ‘‘the Secretary’’ and
inserting 
‘‘the 
Commissioner 
or 
the 
Secretary 
(as
applicable)’’;
(C) in subsection (c)(2), by striking ‘‘the Secretary’’
each place it appears and inserting ‘‘the Commissioner
or the Secretary (as applicable)’’; and
(D) in subsection (d), by striking ‘‘the Office of Inspector
General of the Department of Health and Human Services’’
and inserting ‘‘the Office of the Inspector General of the
Social Security Administration or the Office of the Inspector
General of the Department of Health and Human Services
(as appropriate)’’.
(13) Section 1141 of such Act (42 U.S.C. 1320b–11) is
amended—
(A) by striking ‘‘Secretary’’ each place it appears and
inserting ‘‘Commissioner of Social Security’’;
H. R. 4277—22
(B) by striking ‘‘Secretary’s’’ each place it appears and
inserting ‘‘Commissioner’s’’;
(C) in the first sentence of subsection (a), by striking
‘‘under the direction of the Commissioner of Social Secu-
rity,’’; and
(D) in subsection (d)(6), by striking ‘‘Department of
Health Services and inserting ‘‘Social Security Administra-
tion’’.
(14) Section 1155 of such Act (42 U.S.C. 1320c–4) is
amended by striking ‘‘(to the same extent as is provided in
section 205(b))’’ and all that follows and inserting ‘‘(to the
same extent as beneficiaries under title II are entitled to a
hearing by the Commissioner of Social Security under section
205(b)). For purposes of the preceding sentence, subsection
(l) of section 205 shall apply, except that any reference in
such subsection to the Commissioner of Social Security or the
Social Security Administration shall be deemed a reference
to the Secretary or the Department of Health and Human
Services, respectively. Where the amount in controversy is
$2,000 or more, such beneficiary shall be entitled to judicial
review of any final decision relating to a reconsideration
described in this subsection.’’.
(c) AMENDMENTS TO TITLE XVIII.—
(1) Section 1817 of such Act (42 U.S.C. 1395i) is amended—
(A) in subsection (a), by striking ‘‘Secretary of Health
and Human Services’’ each place it appears and inserting
‘‘Commissioner of Social Security’’;
(B) in subsection (b), by inserting ‘‘the Commissioner
of Social Security,’’ before ‘‘the Secretary of the Treasury’’;
and
(C) in subsection (f), by striking ‘‘Secretary of Health
and Human Services’’ each place it appears and inserting
‘‘Commissioner of Social Security’’.
(2) Section 1840(a) of such Act (42 U.S.C. 1395s(a)) is
amended—
(A) in paragraph (1), by striking ‘‘Secretary’’ and insert-
ing ‘‘Commissioner of Social Security’’, and by adding at
the end the following new sentence: ‘‘Such regulations shall
be prescribed after consultation with the Secretary.’’; and
(B) in paragraph (2), by striking ‘‘Secretary of Health
and Human Services’’ and inserting ‘‘Commissioner of
Social Security’’.
(3) Section 1841(b) of such Act (42 U.S.C. 1395t) is amended
by inserting ‘‘the Commissioner of Social Security,’’ before ‘‘the
Secretary of the Treasury’’.
(4) Section 1872 of such Act (42 U.S.C. 1395ii) is amended
by inserting after ‘‘title II’’ the following: ‘‘, except that, in
applying such provisions with respect to this title, any reference
therein to the Commissioner of Social Security or the Social
Security Administration shall be considered a reference to the
Secretary or the Department of Health and Human Services,
respectively’’.
(5) Sections 1866(h)(1), 1869(b)(1), and 1881(g)(3) of such
Act (42 U.S.C. 1395cc(h)(1), 1395ff(b)(1), 1395rr(g)(3)) are
amended by inserting after ‘‘section 205(g)’’ the following: ‘‘,
except that, in so applying such sections and in applying section
205(l) thereto, any reference therein to the Commissioner of
H. R. 4277—23
Social Security or the Social Security Administration shall be
considered a reference to the Secretary or the Department
of Health and Human Services, respectively’’.
(6) 
Section 
1876(c)(5)(B) 
of 
such 
Act 
(42 
U.S.C.
1395mm(c)(5)(B)) is amended by adding at the end the follow-
ing: ‘‘In applying sections 205(b) and 205(g) as provided in
this subparagraph, and in applying section 205(l) thereto, any
reference therein to the Commissioner of Social Security or
the Social Security Administration shall be considered a ref-
erence to the Secretary or the Department of Health and
Human Services, respectively.’’.
(d) AMENDMENTS TO TITLE XIX.—
(1) Section 1902(a)(10)(A)(ii)(XI) of such Act (42 U.S.C.
1396a(a)(10)(A)(ii)(XI)) is amended by striking ‘‘Secretary’’ and
inserting ‘‘Commissioner of Social Security’’.
(2) Section 1905(j) of such Act (42 U.S.C. 1396d(j)) is
amended by striking ‘‘Secretary’’ and inserting ‘‘Commissioner
of Social Security’’.
(3) Section 1905(q)(2) of such Act (42 U.S.C. 1396d(q)(2))
is amended by striking ‘‘Secretary’’ and inserting ‘‘Commis-
sioner of Social Security’’.
(4) Section 1910(b)(2) of such Act (42 U.S.C. 1396i(b)(2))
is amended, in the first sentence, by inserting after ‘‘section
205(g)’’ the following: ‘‘, except that, in so applying such sections
and in applying section 205(l) thereto, any reference therein
to the Commissioner of Social Security or the Social Security
Administration shall be considered a reference to the Secretary
or the Department of Health and Human Services, respec-
tively’’.
(5) Section 1918 of such Act (42 U.S.C. 1396q) is amended
by inserting after ‘‘title II’’ the following: ‘‘, except that, in
so applying such subsections, and in applying section 205(l)
thereto, with respect to this title, any reference therein to
the Commissioner of Social Security or the Social Security
Administration shall be considered a reference to the Secretary
or the Department of Health and Human Services, respec-
tively’’.
(e) AMENDMENTS TO TITLE 5, UNITED STATES CODE.—Title 5,
United States Code, is amended—
(1) by adding at the end of section 5312 the following
new item:
‘‘Commissioner of Social Security, Social Security Adminis-
tration.’’;
(2) by adding at the end of section 5313 the following
new item:
‘‘Deputy Commissioner of Social Security, Social Security
Administration.’’;
(3) by adding at the end of section 5315 the following
new item:
‘‘Inspector General, Social Security Administration.’’;
(4) by striking ‘‘Secretary of Health, Education, and Wel-
fare’’ each place it appears in section 8141 and inserting
‘‘Commissioner of Social Security’’; and
(5) by striking ‘‘Secretary of Health and Human Services’’
in section 8347(m)(3) and inserting ‘‘Commissioner of Social
Security’’.
(f) AMENDMENTS TO FOOD STAMP ACT OF 1977.—
H. R. 4277—24
(1) Sections 6(c)(3) and 8(e)(6) of the Food Stamp Act of
1977 (7 U.S.C. 2015(c)(3) and 2017(e)(6)) are each amended
by inserting ‘‘the Commissioner of Social Security and’’ before
‘‘the Secretary of Health and Human Services’’.
(2) Sections 6(g), 11(j), and 16(e) of such Act (7 U.S.C.
2015(g), 2020(j), and 2025(e)) are each amended by striking
‘‘Secretary of Health and Human Services’’ each place it appears
and inserting ‘‘Commissioner of Social Security’’.
(3) Section 11(i) of such Act (7 U.S.C. 2020(i)) is amended
by adding ‘‘, the Commissioner of Social Security’’ after ‘‘the
Secretary’’.
(g) AMENDMENT TO TITLE 14, UNITED STATES CODE.—Section
707(e)(3) of title 14, United States Code, is amended by striking
‘‘Secretary of Health and Human Services’’ each place it appears
and inserting ‘‘Commissioner of Social Security’’.
(h) AMENDMENTS TO INTERNAL REVENUE CODE OF 1986.—
(1) Subsections (c)(1), (c)(2)(E), (e)(2), (g)(1), (g)(2)(A), and
(g)(2)(B) of section 1402 of the Internal Revenue Code of 1986
are amended by striking ‘‘Secretary of Health and Human
Services’’ each place it appears and inserting ‘‘Commissioner
of Social Security’’.
(2) Section 3121(b)(10)(B) of such Code is amended by
striking ‘‘Secretary of Health and Human Services’’ each place
it appears and inserting ‘‘Commissioner of Social Security’’.
(3) Section 3127 of such Code is amended by striking ‘‘Sec-
retary of Health and Human Services’’ each place it appears
and inserting ‘‘Commissioner of Social Security’’.
(4) Section 6050F(c)(1)(A) of such Code is amended by
striking ‘‘Secretary of Health and Human Services’’ and insert-
ing ‘‘Commissioner of Social Security’’.
(5) Subsections (d) and (f) of section 6057 of such Code
are amended by striking ‘‘Secretary of Health and Human
Services’’ each place it appears and inserting ‘‘Commissioner
of Social Security’’.
(6) Section 6103(l)(5) of such Code is amended—
(A) by striking ‘‘DEPARTMENT OF HEALTH AND HUMAN
SERVICES’’ in the heading and inserting ‘‘SOCIAL SECURITY
ADMINISTRATION’’; and
(B) by striking ‘‘Secretary of Health and Human Serv-
ices’’ and inserting ‘‘Commissioner of Social Security’’.
(7) Subsections (d)(3)(C) and (e) of section 6402 of such
Code are amended by striking ‘‘Secretary of Health and Human
Services’’ each place it appears and inserting ‘‘Commissioner
of Social Security’’.
(8) Section 6511(d)(5) of such Code is amended by striking
‘‘Secretary of Health and Human Services’’ and inserting
‘‘Commissioner of Social Security’’.
(9)(A) Subsections (b)(2) and (h) of section 9704 of such
Code are amended by striking ‘‘Secretary of Health and Human
Services’’ and inserting ‘‘Commissioner of Social Security’’.
(B) Section 9706 of such Code is amended—
(i) by striking ‘‘Secretary of Health and Human Serv-
ices’’ each place it appears and inserting ‘‘Commissioner
of Social Security’’;
(ii) in such section as amended by clause (i), by striking
‘‘Secretary’’ each place it appears and inserting ‘‘Commis-
sioner’’; and
H. R. 4277—25
(iii) in subsection (d)(3), by striking ‘‘Secretary’s’’ and
inserting ‘‘Commissioner’s’’.
(i) AMENDMENTS TO BLACK LUNG BENEFITS ACT.—
(1) Section 402(c) of the Black Lung Benefits Act (30 U.S.C.
902(c)) is amended by striking ‘‘where used in part B’’ and
all that follows through ‘‘part C’’ and inserting ‘‘where used
in part C’’.
(2) Part B of such Act (30 U.S.C. 921 et seq.) is amended
by striking ‘‘Secretary of Health, Education, and Welfare’’ each
place it appears and inserting ‘‘Commissioner of Social Secu-
rity’’, and by striking ‘‘Secretary’’ each place it otherwise
appears in reference to the Secretary of Health and Human
Services and inserting ‘‘Commissioner of Social Security’’.
(3) Section 426 of such Act (30 U.S.C. 936) is amended—
(A) in subsection (a), by striking ‘‘and the Secretary
of Health, Education, and Welfare’’ and inserting ‘‘, the
Commissioner of Social Security, and the Secretary of
Health and Human Services’’; and
(B) in subsection (b), by striking ‘‘the Secretary of
Health, Education, and Welfare’’ and inserting ‘‘the
Commissioner of Social Security’’.
(4) Section 435 of such Act (30 U.S.C. 945) is amended
by striking ‘‘Secretary of Health, Education, and Welfare’’ each
place it appears and inserting ‘‘Commissioner of Social Secu-
rity’’.
(5) Section 508 of such Act (30 U.S.C. 957) is amended
by striking ‘‘the Secretary of Health, Education, and Welfare,’’
and inserting ‘‘the Secretary of Health and Human Services,
the Commissioner of Social Security,’’.
(j) AMENDMENTS TO TITLE 31, UNITED STATES CODE.—
(1) Section 901(b)(2) of title 31, United States Code, is
amended by adding at the end the following:
‘‘(H) The Social Security Administration.’’.
(2) Section 3720A(f)(2) of such title is amended by striking
‘‘Secretary of Health and Human Services’’ each place it appears
and inserting ‘‘Commissioner of Social Security’’.
(k) AMENDMENTS TO TITLE 38, UNITED STATES CODE.—Section
5105 of title 38, United States Code, is amended—
(1) by striking ‘‘Secretary of Health and Human Services’’
each place it appears and inserting ‘‘Commissioner of Social
Security’’; and
(2) by striking the second sentence of subsection (b) and
inserting the following new sentence: ‘‘A copy of each such
application filed with either the Secretary or the Commissioner,
together with any additional information and supporting docu-
ments (or certifications thereof) which may have been received
by the Secretary or the Commissioner with such application,
and which may be needed by the other official in connection
therewith, shall be transmitted by the Secretary or the Commis-
sioner receiving the application to the other official.’’.
(l) AMENDMENTS TO INSPECTOR GENERAL ACT OF 1978.—
(1) Section 9(a)(1) of the Inspector General Act of 1978
(5 U.S.C. App.) is amended—
(A) by striking ‘‘and’’ at the end of subparagraph (V);
and
(B) by adding at the end the following new subpara-
graph:
H. R. 4277—26
‘‘(W) of the Social Security Administration, the func-
tions of the Inspector General of the Department of Health
and Human Services which are transferred to the Social
Security Administration by the Social Security Independ-
ence and Program Improvements Act of 1994 (other than
functions performed pursuant to section 105(a)(2) of such
Act), except that such transfers shall be made in accordance
with the provisions of such Act and shall not be subject
to subsections (b) through (d) of this section; and’’.
(2) Section 11 of such Act (5 U.S.C. App.) is amended—
(A) in paragraph (1), by inserting ‘‘; or the Commis-
sioner of Social Security, Social Security Administration’’
before ‘‘; as the case may be’’; and
(B) in paragraph (2), by inserting ‘‘, or the Social Secu-
rity Administration’’ before ‘‘; as the case may be’’.
(m) SECTION 505 OF THE SOCIAL SECURITY DISABILITY AMEND-
MENTS
OF 1980.—Section 505 of the Social Security Disability
Amendments of 1980 is amended—
(1) in subsection (a), by striking ‘‘Secretary of Health and
Human Services’’ and inserting ‘‘Commissioner of Social Secu-
rity’’;
(2) in subsection (a)(3), by amending the first sentence
to read as follows: ‘‘In the case of any experiment or demonstra-
tion project under paragraph (1) which is initiated before June
10, 1996, the Commissioner may waive compliance with the
benefit requirements of title II of the Social Security Act, and
the Secretary of Health and Human Services may (upon the
request of the Commissioner) waive compliance with the bene-
fits requirements of title XVIII of such Act, insofar as is nec-
essary for a thorough evaluation of the alternative methods
under consideration.’’; and
(3) in subsections (a) and (c), by striking ‘‘Secretary’’ each
place it otherwise appears and inserting ‘‘Commissioner’’.
SEC. 109. RULES OF CONSTRUCTION.
(a) REFERENCES TO THE DEPARTMENT OF HEALTH AND HUMAN
SERVICES.—Whenever any reference is made in any provision of
law (other than this title or a provision of law amended by this
title), regulation, rule, record, or document to the Department of
Health and Human Services with respect to such Department’s
functions under the old-age, survivors, and disability insurance
program under title II of the Social Security Act or the supplemental
security income program under title XVI of such Act or other
functions performed by the Social Security Administration pursuant
to section 105(a)(2) of this Act, such reference shall be considered
a reference to the Social Security Administration.
(b) REFERENCES TO THE SECRETARY OF HEALTH AND HUMAN
SERVICES.—Whenever any reference is made in any provision of
law (other than this title or a provision of law amended by this
title), regulation, rule, record, or document to the Secretary of
Health and Human Services with respect to such Secretary’s func-
tions under the old-age, survivors, and disability insurance program
under title II of the Social Security Act or the supplemental security
income program under title XVI of such Act or other functions
performed by the Commissioner of Social Security pursuant to
section 105(a)(2) of this Act, such reference shall be considered
a reference to the Commissioner of Social Security.
H. R. 4277—27
(c) REFERENCES TO OTHER OFFICERS AND EMPLOYEES.—When-
ever any reference is made in any provision of law (other than
this title or a provision of law amended by this title), regulation,
rule, record, or document to any other officer or employee of the
Department of Health and Human Services with respect to such
officer or employee’s functions under the old-age, survivors, and
disability insurance program under title II of the Social Security
Act or the supplemental security income program under title XVI
of such Act or other functions performed by the officer or employee
of the Social Security Administration pursuant to section 105(a)(2)
of this Act, such reference shall be considered a reference to the
appropriate officer or employee of the Social Security Administra-
tion.
SEC. 110. EFFECTIVE DATES.
(a) IN GENERAL.—Except as otherwise provided in this title,
this title, and the amendments made by such title, shall take
effect March 31, 1995.
(b) TRANSITION RULES.—Section 106 shall take effect on the
date of the enactment of this Act.
(c) EXCEPTIONS.—The amendments made by section 103, sub-
sections (b)(4) and (c) of section 105, and subsections (a)(1), (e)(1),
(e)(2), (e)(3), and (l)(2) of section 108 shall take effect on the date
of the enactment of this Act.
TITLE II—PROGRAM IMPROVEMENTS
RELATING TO OASDI AND SSI
SEC. 201. RESTRICTIONS ON PAYMENT OF BENEFITS BASED ON
DISABILITY TO SUBSTANCE ABUSERS.
(a) AMENDMENTS RELATING TO BENEFITS BASED ON DISABILITY
UNDER TITLE II OF THE SOCIAL SECURITY ACT.—
(1) REQUIRED PAYMENT OF BENEFITS TO REPRESENTATIVE
PAYEES.—
(A) IN GENERAL.—Section 205(j)(1) of the Social Secu-
rity Act (42 U.S.C. 405(j)(1)) is amended—
(i) by inserting ‘‘(A)’’ after ‘‘(j)(1)’’;
(ii) in the last sentence, by inserting ‘‘, if the
interest of the individual under this title would be
served thereby,’’ after ‘‘alternative representative payee
or’’; and
(iii) by adding at the end the following new
subparagraph:
‘‘(B) In the case of an individual entitled to benefits based
on disability, if alcoholism or drug addiction is a contributing factor
material to the Secretary’s determination that the individual is
under a disability, certification of payment of such benefits to
a representative payee shall be deemed to serve the interest of
such individual under this title. In any case in which such certifi-
cation is so deemed under this subparagraph to serve the interest
of an individual, the Secretary shall include, in such individual’s
notification of entitlement, a notice that alcoholism or drug addic-
tion is a contributing factor material to the Secretary’s determina-
tion of such individual’s disability and that the Secretary is
therefore required to make a certification of payment of such
individual’s benefits to a representative payee.’’.
H. R. 4277—28
(B) 
CONFORMING
AMENDMENT.—Section
205(j)(2)(D)(ii)(II) of such Act (42 U.S.C. 402(j)(2)(D)(ii)(II))
is amended by striking ‘‘or under the age of 15’’ and insert-
ing ‘‘, under the age of 15 years, or (if alcoholism or drug
addiction is a contributing factor material to the Secretary’s
determination that the individual is under a disability)
is eligible for benefits under this title by reason of disabil-
ity.’’.
(C) 90-DAY
DELAY
IN
DEFERRAL
OR
SUSPENSION
OF
BENEFITS FOR CURRENT BENEFICIARIES.—In the case of an
individual who, as of 180 days after the date of the enact-
ment of this Act, has been determined to be under a disabil-
ity, if alcoholism or drug addiction is a contributing factor
material to the determination of the Secretary of Health
and Human Services that the individual is under a disabil-
ity, the Secretary may, notwithstanding clauses (i) and
(ii) of section 205(j)(2)(D) of the Social Security Act, make
direct payment of benefits to such individual during the
90-day period commencing with the date on which such
individual is provided the notice described in subparagraph
(D)(ii) of this paragraph, until such time during such period
as the selection of a representative payee is made pursuant
to section 205(j) of such Act.
(D) EFFECTIVE DATE.—
(i) GENERAL RULE.—Except as provided in clause
(ii), the amendments made by this paragraph shall
apply with respect to benefits paid in months beginning
after 180 days after the date of the enactment of this
Act.
(ii) TREATMENT
OF
CURRENT
BENEFICIARIES.—In
any case in which—
(I) an individual is entitled to benefits based
on disability (as defined in section 205(j)(7) of the
Social Security Act, as amended by this section),
(II) the determination of disability was made
by the Secretary of Health and Human Services
during or before the 180-day period following the
date of the enactment of this Act, and
(III) alcoholism or drug addiction is a contrib-
uting factor material to the Secretary’s determina-
tion that the individual is under a disability,
the amendments made by this paragraph shall apply
with respect to benefits paid in months after the month
in which such individual is notified by the Secretary
in writing that alcoholism or drug addiction is a
contributing factor material to the Secretary’s deter-
mination and that the Secretary is therefore required
to make a certification of payment of such individual’s
benefits to a representative payee.
(E) STUDY REGARDING FEASIBILITY, COST, AND EQUITY
OF REQUIRING REPRESENTATIVE PAYEES FOR ALL DISABILITY
BENEFICIARIES
SUFFERING
FROM
ALCOHOLISM
OR
DRUG
ADDICTION.—
(i) STUDY.—As soon as practicable after the date
of the enactment of this Act, the Secretary of Health
and Human Services shall conduct a study of the rep-
H. R. 4277—29
resentative payee program. In such study, the Sec-
retary shall examine—
(I) the feasibility, cost, and equity of requiring
representative payees for all individuals entitled
to benefits based on disability under title II or
XVI of the Social Security Act who suffer from
alcoholism or drug addiction, irrespective of
whether the alcoholism or drug addiction was
material in any case to the Secretary’s determina-
tion of disability,
(II) the feasibility, cost, and equity of providing
benefits through non-cash means, including (but
not limited to) vouchers, debit cards, and electronic
benefits transfer systems,
(III) the extent to which child beneficiaries
are afflicted by drug addition or alcoholism and
ways of addressing such affliction, including the
feasibility of requiring treatment, and
(IV) the extent to which children’s representa-
tive payees are afflicted by drug addiction or
alcoholism, and methods to identify children’s rep-
resentative payees afflicted by drug addition or
alcoholism and to ensure that benefits continue
to be provided to beneficiaries appropriately.
(ii) REPORT.—Not later than December 31, 1995,
the Secretary shall transmit to the Committee on Ways
and Means of the House of Representatives and the
Committee on Finance of the Senate a report setting
forth the findings of the Secretary based on such study.
Such report shall include such recommendations for
administrative or legislative changes as the Secretary
considers appropriate.
(2) INCREASED RELIANCE ON PROFESSIONAL REPRESENTATIVE
PAYEES.—
(A) PREFERENCE REQUIRED FOR ORGANIZATIONAL REP-
RESENTATIVE PAYEES.—Section 205(j)(2)(C) of such Act (42
U.S.C. 405(j)(2)(C)) is amended by adding at the end the
following new clause:
‘‘(v) In the case of an individual entitled to benefits based
on disability, if alcoholism or drug addiction is a contributing factor
material to the Secretary’s determination that the individual is
under a disability, when selecting such individual’s representative
payee, preference shall be given to—
‘‘(I) a community-based nonprofit social service agency
licensed or bonded by the State,
‘‘(II) a Federal, State, or local government agency whose
mission is to carry out income maintenance, social service,
or health care-related activities,
‘‘(III) a State or local government agency with fiduciary
responsibilities, or
‘‘(IV) a designee of an agency (other than of a Federal
agency) referred to in the preceding subclauses of this clause,
if the Secretary deems it appropriate,
unless the Secretary determines that selection of a family member
would be appropriate.’’.
H. R. 4277—30
(B) AVAILABILITY
OF
PUBLIC
AGENCIES
AND
OTHER
QUALIFIED
ORGANIZATIONS
TO
SERVE
AS
REPRESENTATIVE
PAYEES.—
(i) ALLOWABLE FEES.—Section 205(j)(4)(A) of such
Act (42 U.S.C. 405(j)(4)) is amended—
(I) by redesignating clauses (i) and (ii) as
subclauses (I) and (II), respectively;
(II) by inserting ‘‘(i)’’ after ‘‘(4)(A)’’;
(III) by striking subclause (II) (as redesignated
by subclause (I) of this clause) and inserting the
following:
‘‘(II) $25.00 per month ($50.00 per month in any case
in which the individual is entitled to benefits based on disability
and alcoholism or drug addiction is a contributing factor mate-
rial to the Secretary’s determination that the individual is
under a disability).’’;
(IV) by inserting, after and below subclause
(II) (as amended), the following new sentence:
‘‘The Secretary shall adjust annually (after 1995) each dollar
amount set forth in subclause (II) under procedures providing for
adjustments in the same manner and to the same extent as adjust-
ments are provided for under the procedures used to adjust benefit
amounts under section 215(i)(2)(A), except that any amount so
adjusted that is not a multiple of $1.00 shall be rounded to the
nearest multiple of $1.00.’’; and
(V) by adding at the end the following new
clause:
‘‘(ii) In the case of an individual who is no longer currently
entitled to monthly insurance benefits under this title but to whom
all past-due benefits have not been paid, for purposes of clause
(i), any amount of such past-due benefits payable in any month
shall be treated as a monthly benefit referred to in clause (i)(I).’’.
(ii) INCLUSION OF STATE AND LOCAL AGENCIES AS
QUALIFIED
ORGANIZATIONS.—Section 205(j)(4)(B) of
such Act (42 U.S.C. 405(j)(4)(B)) is amended—
(I) by inserting ‘‘State or local government
agency whose mission is to carry out income
maintenance, social service, or health care-related
activities, any State or local government agency
with fiduciary responsibilities, or any’’ after
‘‘means any’’;
(II) by striking ‘‘representative payee and
which,’’ and inserting ‘‘representative payee, if
such agency,’’;
(III) by striking ‘‘, and’’ at the end of clause
(ii) and inserting a period; and
(IV) by striking clause (iii).
(iii) RETROACTIVE
REPEAL
OF
SUNSET.—Effective
July 1, 1994, section 205(j)(4) of such Act (42 U.S.C.
405(j)(4)) is amended by striking subparagraph (D).
(C) DEFINITION.—Section 205(j) of such Act (42 U.S.C.
405(j)) is amended by adding at the end the following
new paragraph:
‘‘(7) For purposes of this subsection, the term ‘benefit based
on disability’ of an individual means a disability insurance benefit
of such individual under section 223 or a child’s, widow’s, or widow-
H. R. 4277—31
er’s insurance benefit of such individual under section 202 based
on such individual’s disability.’’.
(D) EFFECTIVE DATE.—Except as provided in subpara-
graph (B)(iii), the amendments made by this paragraph
shall apply with respect to months beginning after 90 days
after the date of the enactment of this Act.
(3) NONPAYMENT OR TERMINATION OF BENEFITS.—
(A) IN GENERAL.—Section 225 of such Act (42 U.S.C.
425) is amended—
(i) by striking the heading and inserting the follow-
ing:
‘‘ADDITIONAL RULES RELATING TO BENEFITS BASED ON DISABILITY
‘‘Suspension of Benefits’’;
(ii) by inserting before subsection (b) the following
new heading:
‘‘Continued Payments During Rehabilitation Program’’;
and
(iii) by adding at the end the following new sub-
section:
‘‘Nonpayment or Termination of Benefits Where Entitlement
Involves Alcoholism or Drug Addiction
‘‘(c)(1)(A) In the case of any individual entitled to benefits
based on disability, if alcoholism or drug addiction is a contributing
factor material to the Secretary’s determination that such individual
is under a disability, such individual shall comply with the provi-
sions of this subsection. In any case in which an individual is
required to comply with the provisions of this subsection, the Sec-
retary shall include, in such individual’s notification of entitlement,
a notice informing such individual of such requirement.
‘‘(B) Notwithstanding any other provision of this title, if an
individual who is required under subparagraph (A) to comply with
the provisions of this subsection is determined by the Secretary
not to be in compliance with the provisions of this subsection,
such individual’s benefits based on disability shall be suspended
for a period—
‘‘(i) commencing with the first month following the month
in which such individual is notified by the Secretary of the
determination of noncompliance and that the individual’s bene-
fits will be suspended, and
‘‘(ii) ending with the month preceding the first month,
after the determination of noncompliance, in which such
individual demonstrates that he or she has reestablished and
maintained compliance with such provisions for the applicable
period specified in paragraph (3).
‘‘(2)(A) An individual described in paragraph (1) is in compliance
with the requirements of this subsection for a month if in such
month—
‘‘(i) such individual undergoes substance abuse treatment
which is appropriate for such individual’s condition diagnosed
as alcoholism or drug addiction and for the stage of such
individual’s rehabilitation and which is conducted at an institu-
H. R. 4277—32
tion or facility approved for purposes of this subsection by
the Secretary, and
‘‘(ii) such individual complies in such month with the terms,
conditions, and requirements of such treatment and with
requirements imposed by the Secretary under paragraph (5).
‘‘(B) An individual described in paragraph (1) may be deter-
mined as failing to comply with the requirements of this subsection
for a month only if treatment meeting the requirements of subpara-
graph (A)(i) is available for that month, as determined pursuant
to regulations of the Secretary.
‘‘(3) The applicable period specified in this paragraph is—
‘‘(A) 2 consecutive months, in the case of a first determina-
tion that an individual is not in compliance with the require-
ments of this subsection,
‘‘(B) 3 consecutive months, in the case of the second such
determination with respect to the individual, or
‘‘(C) 6 consecutive months, in the case of the third or
subsequent such determination with respect to the individual.
‘‘(4) In any case in which an individual’s benefit is suspended
for a period of 12 consecutive months for failure to comply with
treatment described in paragraph (2) of this subsection, the month
following such period shall be deemed, for purposes of section
223(a)(1) or subsection (d)(1)(G)(i), (e)(1), or (f)(1) of section 202
(as applicable), the termination month with respect to such entitle-
ment.
‘‘(5)(A) The Secretary shall provide for the monitoring and
testing of individuals who are receiving benefits under this title
and who as a condition of payment of such benefits are required
to be undergoing treatment under paragraph (1) and complying
with the terms, conditions, and requirements thereof as described
in paragraph (2)(A), in order to assure such compliance.
‘‘(B) The Secretary, in consultation with drug and alcohol treat-
ment professionals, shall issue regulations—
‘‘(i) defining appropriate treatment for alcoholics and drug
addicts who are subject to appropriate substance abuse treat-
ment required under this subsection, and
‘‘(ii) establishing guidelines to be used to review and evalu-
ate their compliance, including measures of the progress
expected to be achieved by participants in such programs.
‘‘(C)(i) For purposes of carrying out the requirements of sub-
paragraphs (A) and (B), the Secretary shall provide for the establish-
ment of one or more referral and monitoring agencies for each
State.
‘‘(ii) Each referral and monitoring agency for a State shall—
‘‘(I) identify appropriate placements, for individuals resid-
ing in such State who are entitled to benefits based on disability
and with respect to whom alcoholism or drug addiction is
a contributing factor material to the Secretary’s determination
that they are under a disability, where they may obtain treat-
ment described in paragraph (2)(A),
‘‘(II) refer such individuals to such placements for such
treatment, and
‘‘(III) monitor compliance with the requirements of para-
graph (2)(A) by individuals who are referred by the agency
to such placements and promptly report failures to comply
to the Secretary.
H. R. 4277—33
‘‘(D) There are authorized to be transferred from the Federal
Old-Age and Survivors Insurance Trust Fund and the Federal
Disability Insurance Trust Fund such sums as are necessary to
carry out the requirements of this paragraph for referral, monitor-
ing, and testing.
‘‘(6)(A) In the case of any individual who is entitled to a benefit
based on disability for any month, if alcoholism or drug addiction
is a contributing factor material to the Secretary’s determination
that the individual is under a disability, payment of any past-
due monthly insurance benefits under this title to which such
individual is entitled shall be made in any month only to the
extent that the sum of—
‘‘(i) the amount of such past-due benefit paid in such month,
and
‘‘(ii) the amount of any benefit for the preceding month
under such current entitlement which is payable in such month,
does not exceed, subject to subparagraph (B), twice the amount
of such individual’s benefit for the preceding month (determined
without applying any reductions or deductions under this title).
‘‘(B)(i) In the case of an individual who is no longer currently
entitled to monthly insurance benefits under this title but to whom
any amount of past-due benefits has not been paid, for purposes
of subparagraph (A), such individual’s monthly insurance benefit
for such individual’s last month of entitlement shall be treated
as such individual’s benefit for the preceding month.
‘‘(ii) For the first month in which an individual’s past-due
benefits referred to in subparagraph (A) are paid, the amount
of the limitation provided in subparagraph (A) shall be increased
by the amount of any debts of such individual related to housing
which are outstanding as of the end of the preceding month
and which are resulting in a high risk of homelessness for such
individual.
‘‘(C) Upon the death of an individual to whom payment of
past-due benefits has been limited under subparagraph (A), any
amount of such past-due benefits remaining unpaid shall be treated
as an underpayment for purposes of section 204.
‘‘(D) In the case of an individual who would be entitled to
benefits based on disability but for termination of such benefits
under paragraph (4) or (7), such individual shall be entitled to
payment of past-due benefits under this paragraph as if such
individual continued to be entitled to such terminated benefits.
‘‘(7)(A) Subject to subparagraph (B), in the case of any individ-
ual entitled to benefits based on disability, if—
‘‘(i) alcoholism or drug addiction is a contributing factor
material to the Secretary’s determination that such individual
is under a disability, and
‘‘(ii) as of the end of the 36-month period beginning with
such individual’s first month of entitlement, such individual
would not otherwise be disabled but for alcoholism or drug
addiction,
the month following such 36-month period shall be deemed, for
purposes of section 223(a)(1) or subsection (d)(1)(G)(i), (e)(1), or
(f)(1) of section 202 (as applicable), the termination month with
respect to such entitlement. Such individual whose entitlement
is terminated under this paragraph may not be entitled to benefits
based on disability for any month following such 36-month period
if, in such following month, alcoholism or drug addiction is a contrib-
H. R. 4277—34
uting factor material to the Secretary’s determination that such
individual is under a disability.
‘‘(B) In determining whether the 36-month period referred to
in subparagraph (A) has elapsed—
‘‘(i) a month shall not be taken into account unless the
Secretary determines, under regulations of the Secretary, that
treatment required under this subsection is available to the
individual for the month, and
‘‘(ii) any month for which a suspension is in effect for
the individual under paragraph (1)(B) shall not be taken into
account.
‘‘(8) Monthly insurance benefits under this title which would
be payable to any individual (other than the disabled individual
to whom benefits are not payable by reason of this subsection)
on the basis of the wages and self-employment income of such
disabled individual but for the provisions of paragraph (1), (4),
or (7) shall be payable as though such paragraph did not apply.
‘‘(9) For purposes of this subsection, the term ‘benefit based
on disability’ of an individual means a disability insurance benefit
of such individual under section 223 or a child’s, widow’s, or widow-
er’s insurance benefit of such individual under section 202 based
on the disability of such individual.’’.
(B) REPORT.—Not later than December 31, 1996, the
Secretary shall submit to the Committee on Ways and
Means of the House of Representatives and the Committee
on Finance of the Senate a full and complete report on
the Secretary’s activities under paragraph (5) of section
225(c) of the Social Security Act (as amended by subpara-
graph (A)). Such report shall include the number and
percentage of individuals referred to in such paragraph
who have not received regular drug testing since the effec-
tive date of such paragraph.
(C) SUNSET OF 36-MONTH RULE.—Section 225(c)(7) of
the Social Security Act (added by subparagraph (A)) shall
cease to be effective with respect to benefits for months
after September 2004.
(D) PRESERVATION OF MEDICARE BENEFITS.—
(i) Section 226 of such Act (42 U.S.C. 426) is
amended by adding at the end the following:
‘‘(i) For purposes of this section, each person whose monthly
insurance benefit for any month is terminated or is otherwise
not payable solely by reason of paragraph (1) or (7) of section
225(c) shall be treated as entitled to such benefit for such month.’’.
(ii) Section 226A of such Act (42 U.S.C. 426A)
is amended by adding at the end the following:
‘‘(c) For purposes of this section, each person whose monthly
insurance benefit for any month is terminated or is otherwise
not payable solely by reason of paragraph (1) or (7) of section
225(c) shall be treated as entitled to such benefit for such month.’’.
(E) EFFECTIVE DATE.—
(i) IN GENERAL.—Except as otherwise provided in
this paragraph, the amendments made by this para-
graph shall apply with respect to benefits based on
disability (as defined in section 225(c)(9) of the Social
Security Act, added by this section) which are other-
wise payable in months beginning after 180 days after
the date of the enactment of this Act. The Secretary
H. R. 4277—35
of Health and Human Services shall issue regulations
necessary to carry out the amendments made by this
paragraph not later than 180 days after the date of
the enactment of this Act.
(ii) REFERRAL AND MONITORING AGENCIES.—Section
225(c)(5) of the Social Security Act (added by this sub-
section) shall take effect 180 days after the date of
the enactment of this Act.
(iii) TERMINATION
AFTER
MONTHS.—Section
225(c)(7) of the Social Security Act (added by this sub-
section) shall apply with respect to benefits based on
disability (as so defined) for months beginning after
180 days after the date of the enactment of this Act.
(F) TRANSITION RULES FOR CURRENT BENEFICIARIES.—
In any case in which an individual is entitled to benefits
based on disability, the determination of disability was
made by the Secretary of Health and Human Services
during or before the 180-day period following the date
of the enactment of this Act, and alcoholism or drug addic-
tion is a contributing factor material to the Secretary’s
determination that the individual is under a disability—
(i) TREATMENT
REQUIREMENT.—Paragraphs (1)
through (4) of section 225(c) of the Social Security
Act (added by this subsection) shall apply only with
respect to benefits paid in months after the month
in which such individual is notified by the Secretary
in writing that alcoholism or drug addiction is a
contributing factor material to the Secretary’s deter-
mination and that such individual is therefore required
to comply with the provisions of section 225(c) of such
Act.
(ii) TERMINATION AFTER 36 MONTHS.—
(I) IN
GENERAL.—For purposes of section
225(c)(7) of the Social Security Act (added by this
subsection), the first month of entitlement begin-
ning after 180 days after the date of the enactment
of this Act shall be treated as the individual’s
first month of entitlement to such benefits.
(II) CONCURRENT
BENEFICIARIES
CURRENTLY
UNDER
TREATMENT.—In any case in which the
individual is also entitled to benefits under title
XVI and, as of 180 days after the date of the
enactment of this Act, such individual is under-
going treatment required under section 1611(e)(3)
of the Social Security Act (as in effect immediately
before the date of the enactment of this Act), the
Secretary of Health and Human Services shall
notify such individual of the provisions of section
225(c)(7) of the Social Security Act (added by this
subsection) not later than 180 days after the date
of the enactment of this Act.
(III) CONCURRENT
BENEFICIARIES
NOT
CUR-
RENTLY UNDER TREATMENT.—In any case in which
the individual is also entitled to benefits under
title XVI but, as of 180 days after the date of
the enactment of this Act, such individual is not
undergoing treatment described in subclause (II),
H. R. 4277—36
section 225(c)(7) (added by this subsection) shall
apply only with respect to benefits for months
after the month in which treatment required under
section 1611(e)(3) of the Social Security Act (as
amended by subsection (b)) is available, as deter-
mined under regulations of the Secretary of Health
and Human Services, and the Secretary notifies
such individual of the availability of such treat-
ment and describes in such notification the provi-
sions of section 225(c)(7) of the Social Security
Act (added by this subsection).
(4) IRRELEVANCE OF LEGALITY OF SERVICES PERFORMED IN
DETERMINING SUBSTANTIAL GAINFUL ACTIVITY.—
(A) IN
GENERAL.—Section 223(d)(4) of such Act (42
U.S.C. 423(d)(4)) is amended—
(i) by inserting ‘‘(A)’’ after ‘‘(4)’’; and
(ii) by adding at the end the following new
subparagraph:
‘‘(B) In determining under subparagraph (A) when services
performed or earnings derived from services demonstrate an individ-
ual’s ability to engage in substantial gainful activity, the Secretary
shall apply the criteria described in subparagraph (A) with respect
to services performed by any individual without regard to the
legality of such services.’’.
(B) CONFORMING
AMENDMENT
RELATING
TO
TRIAL
WORK.—Section 222(c)(2) of such Act (42 U.S.C. 422(c)(2))
is amended by inserting ‘‘(whether legal or illegal)’’ after
‘‘activity’’.
(C) EFFECTIVE DATE.—The amendments made by this
paragraph shall take effect on the date of the enactment
of this Act.
(b) AMENDMENTS
RELATING
TO
SUPPLEMENTAL
SECURITY
INCOME BENEFITS UNDER TITLE XVI OF
THE SOCIAL SECURITY
ACT.—
(1) REQUIRED PAYMENT OF BENEFITS TO REPRESENTATIVE
PAYEES.—
(A) IN GENERAL.—Section 1631(a)(2)(A) of the Social
Security Act (42 U.S.C. 1383(a)(2)(A)) is amended—
(i) in clause (ii)—
(I) by inserting ‘‘(I)’’ after ‘‘(ii)’’;
(II) by striking ‘‘or in the case of any individual
or 
eligible 
spouse 
referred 
to 
in 
section
1611(e)(3)(A),’’; and
(III) by adding after and below the end the
following:
‘‘(II) In the case of an individual eligible for benefits under
this title by reason of disability, if alcoholism or drug addiction
is a contributing factor material to the Secretary’s determination
that the individual is disabled, the payment of such benefits to
a representative payee shall be deemed to serve the interest of
the individual under this title. In any case in which such payment
is so deemed under this subclause to serve the interest of an
individual, the Secretary shall include, in the individual’s notifica-
tion of such eligibility, a notice that alcoholism or drug addiction
is a contributing factor material to the Secretary’s determination
that the individual is disabled and that the Secretary is therefore
H. R. 4277—37
required to pay the individual’s benefits to a representative payee.’’;
and
(ii) in clause (iii), by striking ‘‘to the individual
or eligible spouse or to an alternative representative
payee of the individual or eligible spouse’’ and inserting
‘‘to an alternative representative payee of the individ-
ual or eligible spouse or, if the interest of the individual
under this title would be served thereby, to the individ-
ual or eligible spouse’’.
(B) 
CONFORMING
AMENDMENT.—Section
1631(a)(2)(B)(viii)(II) 
of 
such 
Act 
(42 
U.S.C.
1383(a)(2)(B)(viii)(II)) is amended by striking ‘‘15 years’’
and all that follows and inserting ‘‘of 15 years, or (if alcohol-
ism or drug addiction is a contributing factor material
to the Secretary’s determination that the individual is dis-
abled) is eligible for benefits under this title by reason
of disability.’’.
(C) EFFECTIVE DATE.—The amendments made by this
paragraph shall apply with respect to months beginning
after 180 days after the date of the enactment of this
Act.
(2) INCREASED RELIANCE ON PROFESSIONAL REPRESENTATIVE
PAYEES.—
(A) PREFERENCE REQUIRED FOR ORGANIZATIONAL REP-
RESENTATIVE
PAYEES.—Section 1631(a)(2)(B) of such Act
(42 U.S.C. 1383(a)(2)(B)), as amended by paragraph (1)(B)
of this subsection, is amended—
(i) by redesignating clauses (vii) through (xii) as
clauses (viii) through (xiii), respectively;
(ii) by inserting after clause (vi) the following:
‘‘(vii) In the case of an individual eligible for benefits under
this title by reason of disability, if alcoholism or drug addiction
is a contributing factor material to the Secretary’s determination
that the individual is disabled, when selecting such individual’s
representative payee, preference shall be given to—
‘‘(I) a community-based nonprofit social service agency
licensed or bonded by the State;
‘‘(II) a Federal, State, or local government agency whose
mission is to carry out income maintenance, social service,
or health care-related activities;
‘‘(III) a State or local government agency with fiduciary
responsibilities; or
‘‘(IV) a designee of an agency (other than of a Federal
agency) referred to in the preceding subclauses of this clause,
if the Secretary deems it appropriate,
unless the Secretary determines that selection of a family member
would be appropriate.’’;
(iii) in clause (viii) (as so redesignated), by striking
‘‘clause (viii)’’ and inserting ‘‘clause (ix)’’;
(iv) in clause (ix) (as so redesignated), by striking
‘‘(vii)’’ and inserting ‘‘(viii)’’;
(v) in clause (xiii) (as so redesignated)—
(I) by striking ‘‘(xi)’’ and inserting ‘‘(xii)’’; and
(II) by striking ‘‘(x)’’ and inserting ‘‘(xi)’’.
(B) AVAILABILITY
OF
PUBLIC
AGENCIES
AND
OTHER
QUALIFIED
ORGANIZATIONS
TO
SERVE
AS
REPRESENTATIVE
PAYEES.—
H. R. 4277—38
(i) ALLOWABLE FEES.—Section 1631(a)(2)(D) of such
Act (42 U.S.C. 1383(a)(2)(D)) is amended—
(I) in clause (i)—
(aa) by striking subclause (II) and insert-
ing the following:
‘‘(II) $25.00 per month ($50.00 per month in any case
in which an individual is eligible for benefits under this title
by reason of disability and alcoholism or drug addiction is
a contributing factor material to the Secretary’s determination
that the individual is disabled).’’; and
(bb) by inserting after the 1st sentence
the following:
‘‘The Secretary shall adjust annually (after 1995) each dollar
amount set forth in subclause (II) of this clause under procedures
providing for adjustments in the same manner and to the same
extent as adjustments are provided for under the procedures used
to adjust benefit amounts under section 215(i)(2)(A), except that
any amount so adjusted that is not a multiple of $1.00 shall be
rounded to the nearest multiple of $1.00.’’; and
(II) by adding at the end the following:
‘‘(v) In the case of an individual who is no longer eligible
for benefits under this title but to whom any amount of past-
due benefits under this title has not been paid, for purposes of
clause (i), any amount of such past-due benefits payable in any
month shall be treated as a monthly benefit referred to in clause
(i)(I).’’.
(ii) INCLUSION OF STATE AND LOCAL AGENCIES AS
QUALIFIED ORGANIZATIONS.—Section 1631(a)(2)(D)(ii) of
such Act (42 U.S.C. 1383(a)(2)(D)(ii)) is amended—
(I) by inserting ‘‘State or local government
agency whose mission is to carry out income
maintenance, social service, or health care-related
activities, any State or local government agency
with fiduciary responsibilities, or any’’ after
‘‘means any’’;
(II) by inserting a comma after ‘‘service
agency’’;
(III) by adding ‘‘and’’ at the end of subclause
(I); and
(IV) in subclause (II)—
(aa) by adding ‘‘and’’ at the end of item
(aa);
(bb) by striking ‘‘; and’’ at the end of item
(bb) and inserting a period; and
(cc) by striking item (cc).
(iii) RETROACTIVE REPEAL OF SUNSET.—
(I) REPEAL.—Effective July 1, 1994, section
1631(a)(2)(D) of such Act (42 U.S.C. 1383(a)(2)(D))
is amended by striking clause (iv).
(II) 
CONFORMING
AMENDMENT.—Section
1631(a)(2)(D) of such Act (42 U.S.C. 1383(a)(2)(D))
is amended by redesignating clause (v) (as added
by clause (i)(II) of this subparagraph) as clause
(iv).
(C) EFFECTIVE DATE.—Except as provided in subpara-
graph (B)(iii)(I), the amendments made by this paragraph
H. R. 4277—39
shall apply with respect to months beginning after 90 days
after the date of the enactment of this Act.
(3) NONPAYMENT OR TERMINATION OF BENEFITS.—
(A) IN GENERAL.—Section 1611(e)(3)(A) of such Act (42
U.S.C. 1382(e)(3)(A)) is amended to read as follows:
‘‘(A)(i)(I) In the case of any individual eligible for benefits
under this title solely by reason of disability, if alcoholism or drug
addiction is a contributing factor material to the Secretary’s deter-
mination that the individual is disabled, the individual shall comply
with the provisions of this subparagraph. In any case in which
an individual is required to comply with the provisions of this
subparagraph, the Secretary shall include in the individual’s
notification of such eligibility a notice informing the individual
of such requirement.
‘‘(II) Notwithstanding any other provision of this title, if an
individual who is required under subclause (I) to comply with
the requirements of this subparagraph is determined by the Sec-
retary not to be in compliance with the provisions of this sub-
paragraph, the individual’s benefits under this title by reason of
disability shall be suspended for a period—
‘‘(aa) commencing with the first month following the month
in which the individual is notified by the Secretary of the
determination of noncompliance and that the individual’s bene-
fits will be suspended; and
‘‘(bb) ending with the month preceding the first month,
after the determination of noncompliance, in which the individ-
ual demonstrates that he or she has reestablished and main-
tained compliance with such provisions for the applicable period
specified in clause (iii).
‘‘(ii)(I) An individual described in clause (i) is in compliance
with the requirements of this subparagraph for a month if in
such month—
‘‘(aa) the individual undergoes substance abuse treatment,
which is appropriate for the individual’s condition diagnosed
as alcoholism or drug addiction and for the stage of the individ-
ual’s rehabilitation and which is conducted at an institution
or facility approved for purposes of this subparagraph by the
Secretary; and
‘‘(bb) the individual complies in such month with the terms,
conditions, and requirements of the treatment and with require-
ments imposed by the Secretary under this paragraph.
‘‘(II) An individual described in clause (i) may be determined
as failing to comply with the requirements of this subparagraph
for a month only if treatment meeting the requirements of subclause
(I)(aa) is available for the month, as determined pursuant to regula-
tions of the Secretary.
‘‘(iii) The applicable period specified in this clause is—
‘‘(I) 2 consecutive months, in the case of a 1st determination
that an individual is not in compliance with the requirements
of this subparagraph;
‘‘(II) 3 consecutive months, in the case of the 2nd such
determination with respect to the individual; or
‘‘(III) 6 consecutive months, in the case of the 3rd or subse-
quent such determination with respect to the individual.
‘‘(iv) An individual who is not in compliance with this paragraph
for 12 consecutive months shall not be eligible for supplemental
security income benefits under this title. The preceding sentence
H. R. 4277—40
shall not be construed to prevent the individual from reapplying
and becoming eligible for such benefits.
‘‘(v)(I) In the case of any individual eligible for benefits under
this title by reason of disability, if—
‘‘(aa) alcoholism or drug addiction is a contributing factor
material to the Secretary’s determination that the individual
is disabled; and
‘‘(bb) as of the end of the 36-month period beginning with
the 1st month for which such benefits by reason of disability
are payable to the individual, the individual would not other-
wise be disabled but for alcoholism or drug addiction,
the individual shall not be eligible for such benefits by reason
of disability for any month following such 36-month period if, in
such following month, alcoholism or drug addiction would be a
contributing factor material to the Secretary’s determination that
the individual is disabled, notwithstanding section 1619(a).
‘‘(II) An individual whose entitlement to benefits under title
II based on disability has been terminated by reason of section
225(c)(7) shall not be eligible for benefits under this title by reason
of disability, if alcoholism or drug addiction is a contributing factor
material to the Secretary’s determination that the individual is
disabled, for any month after the individual’s termination month
(within the meaning of section 223(a)(1) or subsection (d)(1)(G)(i),
(e)(1), or (f)(1) of section 202, as applicable) with respect to such
benefits.
‘‘(III) Any month for which a suspension is in effect for the
individual under clause (i)(II) shall not be taken into account in
determining whether any 36-month period referred to in this clause
has elapsed.
‘‘(vi)(I) In the case of any individual who is eligible for benefits
under this title for any month solely by reason of disability, if
alcoholism or drug addiction is a contributing factor material to
the Secretary’s determination that the individual is disabled, pay-
ment of any benefits under this title the payment of which is
past due shall be made in any month only to the extent that
the sum of—
‘‘(aa) the amount of the past-due benefit paid in the month;
and
‘‘(bb) the amount of any benefit under this title which
is payable to the individual for the month,
does not exceed twice the maximum benefit payable under this
title to an eligible individual for the preceding month.
‘‘(II) For the first month in which an individual’s past-due
benefits referred to in subclause (I) are paid, the amount of the
limitation provided in subclause (I) shall be increased by the amount
of any debts of the individual related to housing which are outstand-
ing as of the end of the preceding month and which are resulting
in a high risk of homelessness for the individual.
‘‘(III) Upon the death of an individual to whom payment of
past-due benefits has been limited under subclause (I), any amount
of such past-due benefits remaining unpaid shall be treated as
an underpayment for purposes of section 1631(b)(1)(A).
‘‘(IV) As used in this clause, the term ‘benefits under this
title’ includes supplementary payments pursuant to an agreement
for Federal administration under section 1616(a), and payments
pursuant to an agreement entered into under section 212(b) of
Public Law 93–66.
H. R. 4277—41
‘‘(V) In the case of an individual who would be eligible for
benefits under this title by reason of disability but for termination
of such benefits under clause (iv) or (v), the individual shall be
eligible for payment of past-due benefits under this clause as if
the individual continued to be eligible for such terminated benefits.
‘‘(VI) Subclause (I) shall not apply to payments under section
1631(g).’’.
(B) REFERRAL, MONITORING, AND TREATMENT.—
(i) IN GENERAL.—Section 1611(e)(3)(B) of such Act
(42 U.S.C. 1382(e)(3)(B)) is amended—
(I) by inserting ‘‘(i)’’ after ‘‘(B)’’;
(II) by striking the 2nd sentence; and
(III) by adding after and below the end
the following:
‘‘(ii) The Secretary, in consultation with drug and alcohol treat-
ment professionals, shall issue regulations—
‘‘(I) defining appropriate treatment for alcoholics and drug
addicts who are subject to required appropriate substance abuse
treatment under this subparagraph; and
‘‘(II) establishing guidelines to be used to review and evalu-
ate their compliance, including measures of the progress
expected to be achieved by participants in such programs.
‘‘(iii)(I) For purposes of carrying out the requirements of clauses
(i) and (ii), the Secretary shall provide for the establishment of
1 or more referral and monitoring agencies for each State.
‘‘(II) Each referral and monitoring agency for a State shall—
‘‘(aa) identify appropriate placements, for individuals resid-
ing in the State who are eligible for benefits under this title
by reason of disability and with respect to whom alcoholism
or drug addiction is a contributing factor material to the Sec-
retary’s determination that they are disabled, where they may
obtain treatment described in subparagraph (A)(ii)(I);
‘‘(bb) refer such individuals to such placements for such
treatment; and
‘‘(cc) monitor compliance with the requirements of subpara-
graph (A) by individuals who are referred by the agency to
such placements, and promptly report to the Secretary any
failure to comply with such requirements.’’.
(ii) REPORT.—Not later than December 31, 1996,
the Secretary shall submit to the Committee on Ways
and Means of the House of Representatives and the
Committee on Finance of the Senate a full and com-
plete report on the Secretary’s activities under section
1611(e)(3)(B) of the Social Security Act. The report
shall include the number and percentage of individuals
referred to in such paragraph who have not received
regular drug testing since the effective date of the
amendments made by clause (i) of this subparagraph.
(C) 
SUNSET
OF
36-MONTH
RULE.—Section
1611(e)(3)(A)(v) of the Social Security Act (added by
subparagraph (A) of this paragraph) shall cease to be effec-
tive with respect to benefits for months after September
2004.
(D) PRESERVATION
OF
MEDICAID
BENEFITS.—Section
1634 of such Act (42 U.S.C. 13283c) is amended by adding
at the end the following:
H. R. 4277—42
‘‘(e) Each person to whom benefits under this title by reason
of disability are not payable for any month solely by reason of
clause (i) or (v) of section 1611(e)(3)(A) shall be treated, for purposes
of title XIX, as receiving benefits under this title for the month.’’.
(E) EFFECTIVE DATE.—
(i) IN GENERAL.—Except as otherwise provided in
this paragraph, the amendments made by this para-
graph shall apply with respect to supplemental security
income benefits under title XVI of the Social Security
Act by reason of disability which are otherwise payable
in months beginning after 180 days after the date
of the enactment of this Act. The Secretary of Health
and Human Services shall issue regulations necessary
to carry out the amendments made by this paragraph
not later than 180 days after such date of enactment.
(ii) REFERRAL
AND
MONITORING
AGENCIES.—The
amendments made by subparagraph (B) shall take
effect 180 days after the date of the enactment of
this Act.
(iii) TERMINATION AFTER 36 MONTHS.—Clause (v)
of section 1611(e)(3)(A) of the Social Security Act
(added by the amendment made by subparagraph (A)
of this paragraph) shall apply with respect to supple-
mental security income benefits under title XVI of
the Social Security Act by reason of disability for
months beginning after 180 days after the date of
the enactment of this Act.
(F) TRANSITION RULES FOR CURRENT BENEFICIARIES.—
In any case in which an individual is eligible for supple-
mental security income benefits under title XVI of the
Social Security Act by reason of disability, the determina-
tion of disability was made by the Secretary of Health
and Human Services during or before the 180-day period
following the date of the enactment of this Act, and alcohol-
ism or drug addiction is a contributing factor material
to the Secretary’s determination that the individual is dis-
abled, for purposes of section 1611(e)(3)(A)(v) of the Social
Security Act (added by the amendment made by subpara-
graph (A) of this paragraph)—
(i) the first month of such eligibility beginning
after 180 days after the date of the enactment of this
Act shall be treated as the individual’s first month
of such eligibility; and
(ii) the Secretary shall notify the individual of
the requirements of the amendments made by this
paragraph no later than 180 days after the date of
the enactment of this Act.
(4) IRRELEVANCE
OF
LEGALITY
OF
SUBSTANTIAL
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 determina-
tions under this title with respect to substantial gainful
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 enact-
ment of this Act.
H. R. 4277—43
(c) DEMONSTRATION PROJECTS.—
(1) IN
GENERAL.—The Secretary of Health and Human
Services shall develop and carry out demonstration projects
designed to explore innovative referral, monitoring, and treat-
ment approaches with respect to—
(A) individuals who are entitled to disability 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 supplemental secu-
rity 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 determination that individuals
are under a disability. The Secretary may include in such
demonstration projects individuals who are not described in
either subparagraph (A) or subparagraph (B) if the inclusion
of such individuals is necessary to determine the efficacy of
various monitoring, referral, and treatment approaches for
individuals described in subparagraph (A) or (B).
(2) SCOPE.—The demonstration projects developed 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 approaches 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 submit to the
Committee on Ways and Means of the House of Representatives
and the Committee on Finance 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 appro-
priate. The authority under this section shall terminate upon
the transmittal of such final report.
SEC. 202. COMMISSION ON CHILDHOOD DISABILITY.
(a) ESTABLISHMENT OF COMMISSION.—The Secretary of Health
and Human Services (in this section referred to as the ‘‘Secretary’’)
shall appoint a Commission on the Evaluation of Disability in
Children (in this section referred to as the ‘‘Commission’’).
(b) APPOINTMENT OF MEMBERS.—(1) The Secretary shall appoint
not less than 9 but not more than 15 members to the Commission,
including—
(A) recognized experts in the field of medicine, whose work
involves—
(i) the evaluation and treatment of disability in chil-
dren;
(ii) the study of congenital, genetic, or perinatal dis-
orders in children; or
(iii) the measurement of developmental milestones and
developmental deficits in children; and
(B) recognized experts in the fields of—
(i) psychology;
(ii) education and rehabilitation;
(iii) law;
H. R. 4277—44
(iv) the administration of disability programs; and
(v) social insurance (including health insurance); and
(C) other fields of expertise that the Secretary determines
to be appropriate.
(2) Members shall be appointed by January 1, 1995, without
regard to the provisions of title 5, United States Code, governing
appointments to competitive service.
(3) Members appointed under this subsection shall serve for
a term equivalent to the duration of the Commission.
(4) The Secretary shall designate a member of the Commission
to serve as Chair of the Commission for a term equivalent to
the duration of the Commission.
(c) ADMINISTRATIVE PROVISIONS.—(1) Service as a member of
the Commission by an individual who is not otherwise a Federal
employee shall not be considered service in an appointive or elective
position in the Federal Government for the purposes of title 5,
United States Code.
(2) Each member of the Commission who is not a full-time
Federal employee shall be paid compensation at a rate equal to
the daily equivalent of the rate of basic pay in effect for Level
IV of the Executive Schedule for each day (including travel time)
the member attends meetings or otherwise performs the duties
of the Commission.
(3) While away from their homes or regular places of business
on the business of the Commission, each member who is not a
full-time Federal employee may be allowed travel expenses, includ-
ing per diem in lieu of subsistence, as authorized by section 5703
of title 5, United States Code, for persons employed intermittently
in the Government service.
(d) ASSISTANCE TO COMMISSION.—The Commission may engage
individuals skilled in medical and other aspects of childhood disabil-
ity to provide such technical assistance as may be necessary to
carry out the functions of the Commission. The Secretary shall
make available to the Commission such secretarial, clerical, and
other assistance as the Commission may require to carry out the
functions of the Commission.
(e) STUDY BY THE COMMISSION.—(1) The Commission shall con-
duct a study, in consultation with the National Academy of Sciences,
of the effects of the definition of ‘‘disability’’ under title XVI of
the Social Security Act (42 U.S.C. 1382 et seq.) in effect on the
date of enactment of this Act, as such definition applies to determin-
ing whether a child under the age of 18 is eligible to receive
benefits under such title, the appropriateness of such definition,
and the advantages and disadvantages of using any alternative
definition of disability in determining whether a child under age
18 is eligible to receive benefits under such title.
(2) The study described in paragraph (1) shall include issues
of—
(A) whether the need by families for assistance in meeting
high costs of medical care for children with serious physical
or mental impairments, whether or not they are eligible for
disability benefits under title XVI of the Social Security Act,
might appropriately be met through expansion of Federal health
assistance programs;
(B) the feasibility of providing benefits to children through
noncash means, including but not limited to vouchers, debit
cards, and electronic benefit transfer systems;
H. R. 4277—45
(C) the extent to which the Social Security Administration
can involve private organizations in an effort to increase the
provision of social services, education, and vocational instruc-
tion with the aim of promoting independence and the ability
to engage in substantial gainful activity;
(D) alternative ways and providing retroactive supple-
mental security income benefits to disabled children, including
the desirability and feasibility of conserving some portion of
such benefits to promote the long-term well-being of such chil-
dren;
(E) the desirability and methods of increasing the extent
to which benefits are used in the effort to assist disabled
children in achieving independence and engaging in substantial
gainful activity;
(F) the effects of the supplemental security income program
on disabled children and their families; and
(G) such other issues that the Secretary determines to
be appropriate.
(f) REPORT.—Not later than November 30, 1995, the Commis-
sion shall prepare a report and submit such report to the Committee
on Ways and Means of the House of Representatives and the
Committee on Finance of the Senate which shall summarize the
results of the study described in subsection (e) and include any
recommendations that the Commission determines to be appro-
priate.
SEC. 203. REGULATIONS REGARDING COMPLETION OF PLANS FOR
ACHIEVING SELF-SUPPORT.
(a) IN GENERAL.—Section 1633 of the Social Security Act (42
U.S.C. 1383b) is amended by adding at the end the following:
‘‘(d) The Secretary shall establish by regulation criteria for
time limits and other criteria related to individuals’ plans for achiev-
ing self-support, that take into account—
‘‘(1) the length of time that the individual will need to
achieve the individual’s employment goal (within such reason-
able period as the Secretary may establish); and
‘‘(2) other factors determined by the Secretary to be appro-
priate.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall take effect on January 1, 1995.
SEC. 204. SSI ELIGIBILITY FOR STUDENTS TEMPORARILY ABROAD.
(a) IN GENERAL.—Section 1611(f) of the Social Security Act
(42 U.S.C. 1382(f)) is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(f)’’; and
(2) by adding after and below the end the following:
‘‘(2) For a period of not more than 1 year, the first sentence
of paragraph (1) shall not apply to any individual who—
‘‘(A) was eligible to receive a benefit under this title for
the month immediately preceding the first month during all
of which the individual was outside the United States; and
‘‘(B) demonstrates to the satisfaction of the Secretary that
the absence of the individual from the United States will be—
‘‘(i) for not more than 1 year; and
‘‘(ii) for the purpose of conducting studies as part of
an educational program that is—
‘‘(I) designed to substantially enhance the ability
of the individual to engage in gainful employment;
H. R. 4277—46
‘‘(II) sponsored by a school, college, or university
in the United States; and
‘‘(III) not available to the individual in the United
States.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall take effect on January 1, 1995.
SEC. 205. DISREGARD OF COST-OF-LIVING INCREASES FOR CONTIN-
UED ELIGIBILITY FOR WORK INCENTIVES.
(a) IN GENERAL.—Section 1619(b)(1)(B) of the Social Security
Act (42 U.S.C. 1382h(b)(1)(B)) is amended by inserting ‘‘and
increases pursuant to section 215(i) in the level of monthly insur-
ance benefits to which the individual is entitled under title II
that occur while such individual is considered to be receiving supple-
mental security income benefits by reason of this subsection’’ after
‘‘earnings’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply to eligibility determinations for months after December
1994.
SEC. 206. EXPANSION OF THE AUTHORITY OF THE SOCIAL SECURITY
ADMINISTRATION TO PREVENT, DETECT, AND TERMINATE
FRAUDULENT CLAIMS FOR OASDI AND SSI BENEFITS.
(a) PREVENTION OF FRAUD BY TRANSLATORS OF FOREIGN LAN-
GUAGES.—
(1) OASDI PROGRAMS.—Section 205(c) of the Social Security
Act (42 U.S.C. 405(c)) is amended—
(A) by redesignating paragraph (8) as paragraph (9);
and
(B) by inserting after paragraph (7) the following:
‘‘(8) A translation into English by a third party of a statement
made in a foreign language by an applicant for or beneficiary
of monthly insurance benefits under this title shall not be regarded
as reliable for any purpose under this title unless the third party,
under penalty of perjury—
‘‘(A) certifies that the translation is accurate; and
‘‘(B) discloses the nature and scope of the relationship
between the third party and the applicant or recipient, as
the case may be.’’.
(2) SSI PROGRAM.—Section 1631(e) of such Act (42 U.S.C.
1383(e)) is amended by inserting after paragraph (3) the follow-
ing:
‘‘(4) A translation into English by a third party of a statement
made in a foreign language by an applicant for or recipient of
benefits under this title shall not be regarded as reliable for any
purpose under this title unless the third party, under penalty
of perjury—
‘‘(A) certifies that the translation is accurate; and
‘‘(B) discloses the nature and scope of the relationship
between the third party and the applicant or recipient, as
the case may be.’’.
(3) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to translations made on or after October
1, 1994.
(b) CIVIL MONETARY PENALTIES, ASSESSMENTS, AND EXCLUSIONS
FOR TITLES II AND XVI.—
H. R. 4277—47
(1) IN GENERAL.—Title XI of the Social Security Act (42
U.S.C. 1301 et seq.) is amended by inserting after section
1128B the following:
‘‘SEC. 1129. CIVIL MONETARY PENALTIES AND ASSESSMENTS FOR
TITLES II AND XVI.
‘‘(a)(1) Any person (including an organization, agency, or other
entity) who makes, or causes to be made, a statement or representa-
tion of a material fact for use in determining any initial or continu-
ing right to or the amount of—
‘‘(A) monthly insurance benefits under title II, or
‘‘(B) benefits or payments under title XVI,
that the person knows or should know is false or misleading or
knows or should know omits a material fact or makes such a
statement with knowing disregard for the truth shall be subject
to, in addition to any other penalties that may be prescribed by
law, a civil money penalty of not more than $5,000 for each such
statement or representation. Such person also shall be subject to
an assessment, in lieu of damages sustained by the United States
because of such statement or representation, of not more than
twice the amount of benefits or payments paid as a result of
such a statement or representation. In addition, the Secretary may
make a determination in the same proceeding to exclude, as pro-
vided in section 1128, such a person who is a medical provider
or physician from participation in the programs under title XVIII
and to direct the appropriate State agency to exclude the person
from participation in any State health care program permanently
or for such period as the Secretary determines.
‘‘(2) For purposes of this section, a material fact is one which
the Secretary may consider in evaluating whether an applicant
is entitled to benefits under title II or eligible for benefits or
payments under title XVI.
‘‘(b)(1) The Secretary may initiate a proceeding to determine
whether to impose a civil money penalty or assessment, or whether
to recommend exclusion under subsection (a) only as authorized
by the Attorney General pursuant to procedures agreed upon by
the Secretary and the Attorney General. The Secretary may not
initiate an action under this section with respect to any violation
described in subsection (a) later than 6 years after the date the
violation was committed. The Secretary may initiate an action
under this section by serving notice of the action in any manner
authorized by Rule 4 of the Federal Rules of Civil Procedure.
‘‘(2) The Secretary shall not make a determination adverse
to any person under this section until the person has been given
written notice and an opportunity for the determination to be made
on the record after a hearing at which the person is entitled to
be represented by counsel, to present witnesses, and to cross-exam-
ine witnesses against the person.
‘‘(3) In a proceeding under this section which—
‘‘(A) is against a person who has been convicted (whether
upon a verdict after trial or upon a plea of guilty or nolo
contendere) of a Federal or State crime charging fraud or
false statements; and
‘‘(B) involves the same transaction as in the criminal action;
the person is estopped from denying the essential elements of
the criminal offense.
H. R. 4277—48
‘‘(4) The official conducting a hearing under this section may
sanction a person, including any party or attorney, for failing to
comply with an order or procedure, for failing to defend an action,
or for such other misconduct as would interfere with the speedy,
orderly, or fair conduct of the hearing. Such sanction shall reason-
ably relate to the severity and nature of the failure or misconduct.
Such sanction may include—
‘‘(A) in the case of refusal to provide or permit discovery,
drawing negative factual inference or treating such refusal
as an admission by deeming the matter, or certain facts, to
be established;
‘‘(B) prohibiting a party from introducing certain evidence
or otherwise supporting a particular claim or defense;
‘‘(C) striking pleadings, in whole or in part;
‘‘(D) staying the proceedings;
‘‘(E) dismissal of the action;
‘‘(F) entering a default judgment;
‘‘(G) ordering the party or attorney to pay attorneys’ fees
and other costs caused by the failure or misconduct; and
‘‘(H) refusing to consider any motion or other action which
is not filed in a timely manner.
‘‘(c) In determining pursuant to subsection (a) the amount or
scope of any penalty or assessment, or whether to recommend
an exclusion, the Secretary shall take into account—
‘‘(1) the nature of the statements and representations
referred to in subsection (a) and the circumstances under which
they occurred;
‘‘(2) the degree of culpability, history of prior offenses,
and financial condition of the person committing the offense;
and
‘‘(3) such other matters as justice may require.
‘‘(d)(1) Any person adversely affected by a determination of
the Secretary under this section may obtain a review of such deter-
mination in the United States Court of Appeals for the circuit
in which the person resides, or in which the statement or represen-
tation referred to in subsection (a) was made, by filing in such
court (within 60 days following the date the person is notified
of the Secretary’s determination) a written petition requesting that
the determination be modified or set aside. A copy of the petition
shall be forthwith transmitted by the clerk of the court to the
Secretary, and thereupon the Secretary shall file in the court the
record in the proceeding as provided in section 2112 of title 28,
United States Code. Upon such filing, the court shall have jurisdic-
tion of the proceeding and of the question determined therein,
and shall have the power to make and enter upon the pleadings,
testimony, and proceedings set forth in such record a decree affirm-
ing, modifying, remanding for further consideration, or setting aside,
in whole or in part, the determination of the Secretary and enforcing
the same to the extent that such order is affirmed or modified.
No objection that has not been urged before the Secretary shall
be considered by the court, unless the failure or neglect to urge
such objection shall be excused because of extraordinary cir-
cumstances.
‘‘(2) The findings of the Secretary with respect to questions
of fact, if supported by substantial evidence on the record considered
as a whole, shall be conclusive in the review described in paragraph
(1). If any party shall apply to the court for leave to adduce addi-
H. R. 4277—49
tional evidence and shall show to the satisfaction of the court
that such additional evidence is material and that there were
reasonable grounds for the failure to adduce such evidence in the
hearing before the Secretary, the court may order such additional
evidence to be taken before the Secretary and to be made a part
of the record. The Secretary may modify such findings as to the
facts, or make new findings, by reason of additional evidence so
taken and filed, and the Secretary shall file with the court such
modified or new findings, which findings with respect to questions
of fact, if supported by substantial evidence on the record considered
as a whole shall be conclusive, and the Secretary’s recommenda-
tions, if any, for the modification or setting aside of the Secretary’s
original order.
‘‘(3) Upon the filing of the record and the Secretary’s original
or modified order with the court, the jurisdiction of the court shall
be exclusive and its judgment and decree shall be final, except
that the same shall be subject to review by the Supreme Court
of the United States, as provided in section 1254 of title 28, United
States Code.
‘‘(e)(1) Civil money penalties and assessments imposed under
this section may be compromised by the Secretary and may be
recovered—
‘‘(A) in a civil action in the name of the United States
brought in United States district court for the district where
the statement or representation referred to in subsection (a)
was made, or where the person resides, as determined by
the Secretary;
‘‘(B) by means of reduction in tax refunds to which the
person is entitled, based on notice to the Secretary of the
Treasury as permitted under section 3720A of title 31, United
States Code;
‘‘(C)(i) by decrease of any payment of monthly insurance
benefits under title II, notwithstanding section 207, or
‘‘(ii) by decrease of any payment under title XVI for which
the person is eligible, notwithstanding section 207, as made
applicable to title XVI by reason of section 1631(d)(1);
‘‘(D) by authorities provided under the Debt Collection Act
of 1982, as amended, to the extent applicable to debts arising
under the Social Security Act;
‘‘(E) by deduction of the amount of such penalty or assess-
ment, when finally determined, or the amount agreed upon
in compromise, from any sum then or later owing by the United
States to the person against whom the penalty or assessment
has been assessed; or
‘‘(F) by any combination of the foregoing.
‘‘(2) Amounts recovered under this section shall be recovered
by the Secretary and shall be disposed of as follows:
‘‘(A) In the case of amounts recovered arising out of a
determination relating to title II, the amounts shall be trans-
ferred to the Managing Trustee of the Federal Old-Age and
Survivors Insurance Trust Fund or the Federal Disability Insur-
ance Trust Fund, as determined appropriate by the Secretary,
and such amounts shall be deposited by the Managing Trustee
into such Trust Fund.
‘‘(B) In the case of amounts recovered arising out of a
determination relating to title XVI, the amounts shall be depos-
H. R. 4277—50
ited by the Secretary into the general fund of the Treasury
as miscellaneous receipts.
‘‘(f) A determination pursuant to subsection (a) by the Secretary
to impose a penalty or assessment, or to recommend an exclusion
shall be final upon the expiration of the 60-day period referred
to in subsection (d). Matters that were raised or that could have
been raised in a hearing before the Secretary or in an appeal
pursuant to subsection (d) may not be raised as a defense to
a civil action by the United States to collect a penalty or assessment
imposed under this section.
‘‘(g) Whenever the Secretary’s determination to impose a pen-
alty or assessment under this section with respect to a medical
provider or physician becomes final, the provisions of section
1128A(h) shall apply.
‘‘(h) Whenever the Secretary has reason to believe that any
person has engaged, is engaging, or is about to engage in any
activity which makes the person subject to a civil monetary penalty
under this section, the Secretary may bring an action in an appro-
priate district court of the United States (or, if applicable, a United
States court of any territory) to enjoin such activity, or to enjoin
the person from concealing, removing, encumbering, or disposing
of assets which may be required in order to pay a civil monetary
penalty and assessment if any such penalty were to be imposed
or to seek other appropriate relief.
‘‘(i)(1) The provisions of subsections (d) and (e) of section 205
shall apply with respect to this section to the same extent as
they are applicable with respect to title II. The Secretary may
delegate the authority granted by section 205(d) (as made applicable
to this section) to the Inspector General for purposes of any inves-
tigation under this section.
‘‘(2) The Secretary may delegate authority granted under this
section to the Inspector General.
‘‘(j) For purposes of this section, the term ‘State agency’ shall
have the same meaning as in section 1128A(i)(1).
‘‘(k) A principal is liable for penalties and assessments under
subsection (a), and for an exclusion under section 1128, for the
actions of the principal’s agent acting within the scope of the
agency.’’.
(2) CONFORMING AMENDMENTS.—Section 1128 of such Act
(42 U.S.C. 1320a–7) is amended—
(A) in subsection (b)(7), by striking ‘‘or section 1128B’’
and inserting ‘‘, 1128B, or 1129’’;
(B) in subsection (b)(8)(B)(ii), by inserting ‘‘or 1129’’
after ‘‘section 1128A’’; and
(C) in subsection (f)(3), by inserting ‘‘, 1129,’’ after
‘‘sections 1128A’’.
(3) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to conduct occurring on or after October
1, 1994.
(c) SSI FRAUD CONSIDERED A FELONY.—
(1) IN GENERAL.—Section 1632(a) of the Social Security
Act (42 U.S.C. 1383a(a)) is amended by striking ‘‘shall’’ the
1st place such term appears and all that follows and inserting
‘‘shall be fined under title 18, United States Code, imprisoned
not more than 5 years, or both.’’.
(2) CONFORMING AMENDMENT.—Section 1632(b) of such Act
(42 U.S.C. 1383a(b)) is amended to read as follows:
H. R. 4277—51
‘‘(b)(1) If a person or entity violates subsection (a) in the person’s
or entity’s role as, or in applying to become, a representative payee
under section 1631(a)(2) on behalf of another individual (other
than the person’s eligible spouse), and the violation includes a
willful misuse of funds by the person or entity, the court may
also require that full or partial restitution of funds be made to
such other individual.
‘‘(2) Any person or entity convicted of a violation of subsection
(a) of this section or of section 208 may not be certified as a
representative payee under section 1631(a)(2).’’.
(3) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to conduct occurring on or after October
1, 1994.
(d) AUTHORITY TO REDETERMINE ELIGIBILITY
IF FRAUD IS
INVOLVED, AND TO TERMINATE BENEFITS IF THERE IS INSUFFICIENT
RELIABLE EVIDENCE.—
(1) OASDI PROGRAMS.—Section 205 of the Social Security
Act (42 U.S.C. 405) is amended by adding at the end the
following:
‘‘(u)(1)(A) The Secretary shall immediately redetermine the
entitlement of individuals to monthly insurance benefits under this
title if there is reason to believe that fraud or similar fault was
involved in the application of the individual for such benefits,
unless a United States attorney, or equivalent State prosecutor,
with jurisdiction over potential or actual related criminal cases,
certifies, in writing, that there is a substantial risk that such
action by the Secretary with regard to beneficiaries in a particular
investigation would jeopardize the criminal prosecution of a person
involved in a suspected fraud.
‘‘(B) When redetermining the entitlement, or making an initial
determination of entitlement, of an individual under this title,
the Secretary shall disregard any evidence if there is reason to
believe that fraud or similar fault was involved in the providing
of such evidence.
‘‘(2) For purposes of paragraph (1), similar fault is involved
with respect to a determination if—
‘‘(A) an incorrect or incomplete statement that is material
to the determination is knowingly made; or
‘‘(B) information that is material to the determination is
knowingly concealed.
‘‘(3) If, after redetermining pursuant to this subsection the
entitlement of an individual to monthly insurance benefits, the
Secretary determines that there is insufficient evidence to support
such entitlement, the Secretary may terminate such entitlement
and may treat benefits paid on the basis of such insufficient evi-
dence as overpayments.’’.
(2) SSI PROGRAM.—Section 1631(e) of such Act (42 U.S.C.
1383(e)) is amended by adding at the end the following:
‘‘(6)(A)(i) The Secretary shall immediately redetermine the eligi-
bility of an individual for benefits under this title if there is reason
to believe that fraud or similar fault was involved in the application
of the individual for such benefits, unless a United States attorney,
or equivalent State prosecutor, with jurisdiction over potential or
actual related criminal cases, certifies, in writing, that there is
a substantial risk that such action by the Secretary with regard
to recipients in a particular investigation would jeopardize the
criminal prosecution of a person involved in a suspected fraud.
H. R. 4277—52
‘‘(ii) When redetermining the eligibility, or making an initial
determination of eligibility, of an individual for benefits under this
title, the Secretary shall disregard any evidence if there is reason
to believe that fraud or similar fault was involved in the providing
of such evidence.
‘‘(B) For purposes of subparagraph (A), similar fault is involved
with respect to a determination if—
‘‘(i) an incorrect or incomplete statement that is material
to the determination is knowingly made; or
‘‘(ii) information that is material to the determination is
knowingly concealed.
‘‘(C) If, after redetermining the eligibility of an individual for
benefits under this title, the Secretary determines that there is
insufficient evidence to support such eligibility, the Secretary may
terminate such eligibility and may treat benefits paid on the basis
of such insufficient evidence as overpayments.’’.
(3) EFFECTIVE DATE.—The amendments made by this sub-
section shall take effect on October 1, 1994, and shall apply
to determinations made before, on, or after such date.
(e) AVAILABILITY OF RECIPIENT IDENTIFYING INFORMATION FROM
THE INSPECTOR GENERAL.—
(1) IN GENERAL.—Section 1129 of the Social Security Act
(added by subsection (b) of this section) is amended by adding
at the end the following:
‘‘(l) As soon as the Inspector General, Department of Health
and Human Services, has reason to believe that fraud was involved
in the application of an individual for monthly insurance benefits
under title II or for benefits under title XVI, the Inspector General
shall make available to the Secretary information identifying the
individual, unless a United States attorney, or equivalent State
prosecutor, with jurisdiction over potential or actual related crimi-
nal cases, certifies, in writing, that there is a substantial risk
that making the information so available in a particular investiga-
tion or redetermining the eligibility of the individual for such bene-
fits would jeopardize the criminal prosecution of any person who
is a subject of the investigation from which the information is
derived.’’.
(2) EFFECTIVE DATE.—The amendment made by paragraph
(1) shall take effect on October 1, 1994.
(f) AUTHORITY TO USE AVAILABLE PREADMISSION IMMIGRANT
AND REFUGEE MEDICAL INFORMATION.—
(1) IN
GENERAL.—Section 1631(e) of the Social Security
Act (42 U.S.C. 1383(e)) as amended by subsection (d)(2) of
this section, is amended by adding at the end the following:
‘‘(7)(A) The Secretary shall request the Immigration and Natu-
ralization Service or the Centers for Disease Control to provide
the Secretary with whatever medical information, identification
information, and employment history either such entity has with
respect to any alien who has applied for benefits under title XVI
to the extent that the information is relevant to any determination
relating to eligibility for such benefits under title XVI.
‘‘(B) Subparagraph (A) shall not be construed to prevent the
Secretary from adjudicating the case before receiving such informa-
tion.’’.
(2) EFFECTIVE DATE.—The amendment made by paragraph
(1) shall take effect on October 1, 1994.
H. R. 4277—53
(g) ANNUAL REPORTS ON REVIEWS OF OASDI AND SSI CASES.—
The Secretary of Health and Human Services shall annually submit
to the Committee on Ways and Means of the House of Representa-
tives and the Committee on Finance of the Senate a report on
the extent to which the Secretary has exercised his authority to
review cases of entitlement to monthly insurance benefits under
title II of the Social Security Act and supplemental security income
cases under title XVI of such Act, and the extent to which the
cases reviewed were those that involved a high likelihood or prob-
ability of fraud.
SEC. 207. DISABILITY REVIEW REQUIRED FOR SSI RECIPIENTS WHO
ARE 18 YEARS OF AGE.
(a) DISABILITY REVIEW REQUIREMENT.—
(1) IN GENERAL.—The applicable State agency or the Sec-
retary of Health and Human Services (as may be appropriate)
shall redetermine the eligibility of a qualified individual for
supplemental security income benefits under title XVI of the
Social Security Act by reason of disability, by applying the
criteria used in determining eligibility for such benefits of
applicants who have attained 18 years of age.
(2) WHEN CONDUCTED.—The redetermination required by
paragraph (1) with respect to a qualified individual shall be
conducted during the 1-year period that begins on the date
the qualified individual attains 18 years of age.
(3) MINIMUM NUMBER OF REVIEWS.—The Secretary shall
conduct redeterminations under paragraph (1) with respect to
not less than 1⁄3 of qualified individuals in each of fiscal years
1996, 1997, and 1998.
(4) QUALIFIED INDIVIDUAL DEFINED.—As used in this para-
graph, the term ‘‘qualified individual’’ means a recipient of
supplemental security income benefits under title XVI of the
Social Security Act by reason of disability who attains 18 years
of age in or after the 9th month after the month in which
this Act is enacted.
(5) SUBSTITUTE FOR A CONTINUING DISABILITY REVIEW.—
A redetermination under paragraph (1) of this subsection shall
be considered a substitute for a review required under section
1614(a)(3)(G) of the Social Security Act.
(6) SUNSET.—Paragraph (1) shall have no force or effect
after October 1, 1998.
(b) REPORT TO THE CONGRESS.—Not later than October 1, 1998,
the Secretary of Health and Human Services shall submit to the
Committee on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate a report on the
activities conducted under subsection (a).
SEC. 208. CONTINUING DISABILITY REVIEWS.
(a) TEMPORARY ANNUAL MINIMUM NUMBER OF REVIEWS.—Dur-
ing each year of the 3-year period that begins on October 1, 1995,
the Secretary of Health and Human Services shall apply section
221(i) of the Social Security Act in making disability determinations
under title XVI of such Act with respect to at least 100,000 recipi-
ents of supplemental security income benefits under such title.
(b) REPORT TO THE CONGRESS.—Not later than October 1, 1998,
the Secretary of Health and Human Services shall submit to the
Committee on Ways and Means of the House of Representatives
H. R. 4277—54
and the Committee on Finance of the Senate a report on the
activities conducted under subsection (a).
SEC. 209. EXEMPTION FROM ADJUSTMENT IN PASS-ALONG REQUIRE-
MENTS.
(a) IN GENERAL.—Section 1618(b) of the Social Security Act
(42 U.S.C. 1382g(b)) is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and
(2) by adding at the end the following:
‘‘(2) For purposes of determining under paragraph (1) whether
a State’s expenditures for supplementary payments in the 12-month
period beginning on the effective date of any increase in the level
of supplemental security income benefits are not less than the
State’s expenditures for such payments in the preceding 12-month
period, the Secretary, in computing the State’s expenditures, shall
disregard, pursuant to a 1-time election of the State, all expendi-
tures by the State for retroactive supplementary payments that
are required to be made in connection with the retroactive supple-
mental security income benefits referred to in section 5041 of the
Omnibus Budget Reconciliation Act of 1990.’’.
(b) APPLICABILITY.—The amendments made by subsection (a)
shall apply with respect to increases in the level of supplemental
security income benefits under title XVI of the Social Security
Act whether occurring before, on, or after the date of the enactment
of this Act.
TITLE III—MISCELLANEOUS PROGRAM
IMPROVEMENTS
SEC. 301. ISSUANCE OF PHYSICAL DOCUMENTS IN THE FORM OF
BONDS, NOTES, OR CERTIFICATES TO THE SOCIAL SECU-
RITY TRUST FUNDS.
(a) REQUIREMENT THAT OBLIGATIONS ISSUED TO THE OASDI
TRUST FUNDS BE EVIDENCED BY PAPER INSTRUMENTS IN THE FORM
OF BONDS, NOTES, OR CERTIFICATES
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 sentence
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 obligation, 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 States is pledged to
the payment of the obligation with respect to both principal and
interest.’’.
(b) PAYMENT TO THE OASDI TRUST FUNDS FROM THE GENERAL
FUND OF THE TREASURY OF INTEREST ON OBLIGATIONS, AND OF
PROCEEDS
FROM
THE
SALE
OR
REDEMPTION
OF
OBLIGATIONS,
REQUIRED TO BE IN THE FORM OF CHECKS.—Section 201(f) of such
Act (42 U.S.C. 401(f)) is amended by adding at the end the following
new sentence: ‘‘Payment from the general fund of the Treasury
to either of the Trust Funds of any such interest or proceeds
H. R. 4277—55
shall be in the form of paper checks drawn on such general fund
to the order of such Trust Fund.’’.
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by this section
shall apply with respect to obligations issued, and payments
made, after 60 days after the date of the enactment of this
Act.
(2) TREATMENT OF OUTSTANDING OBLIGATIONS.—Not later
than 60 days after the date of the enactment of this Act,
the Secretary of the Treasury shall issue to the Federal Old-
Age and Survivors Insurance Trust Fund or the Federal Disabil-
ity Insurance Trust Fund, as applicable, a paper instrument,
in the form of a bond, note, or certificate of indebtedness,
for each obligation which has been issued to the Trust Fund
under section 201(d) of the Social Security Act and which
is outstanding as of such date. Each such document shall set
forth the principal amount, date of maturity, and interest rate
of the obligation, and shall state on its face that the obligation
shall be incontestable in the hands of the Trust Fund to which
it was issued, that the obligation is supported by the full
faith and credit of the United States, and that the United
States is pledged to the payment of the obligation with respect
to both principal and interest.
SEC. 302. GAO STUDY REGARDING TELEPHONE ACCESS TO LOCAL
OFFICES OF THE SOCIAL SECURITY ADMINISTRATION.
(a) STUDY.—The Comptroller General of the United States shall
conduct a study of telephone access to local offices of the Social
Security Administration.
(b) MATTERS TO BE STUDIED.—In conducting the study under
this section, the Comptroller General shall make an independent
assessment of the Social Security Administration’s use of innovative
technology (including attendant call and voice mail) to increase
public telephone access to local offices of the Administration. Such
study shall include—
(1) an assessment of the aggregate impact of such tech-
nology on public access to the local offices, and
(2) a separate assessment of the impact of such technology
on public access to those local offices to which access was
restricted on October 1, 1989.
(c) REPORT.—Not later than January 31, 1996, the Comptroller
General shall submit a report on the results of the study conducted
pursuant to this section to the Committee on Ways and Means
of the House of Representatives and the Committee on Finance
of the Senate.
SEC. 303. EXPANSION OF STATE OPTION TO EXCLUDE SERVICE OF
ELECTION OFFICIALS OR ELECTION WORKERS FROM COV-
ERAGE.
(a) LIMITATION ON MANDATORY COVERAGE OF STATE ELECTION
OFFICIALS AND ELECTION WORKERS WITHOUT STATE RETIREMENT
SYSTEM.—
(1) 
AMENDMENT
TO
SOCIAL
SECURITY
ACT.—Section
210(a)(7)(F)(iv) 
of 
the 
Social 
Security 
Act 
(42 
U.S.C.
410(a)(7)(F)(iv)) (as amended by section 11332(a) of the Omni-
bus Budget Reconciliation Act of 1990) is amended by striking
‘‘$100’’ and inserting ‘‘$1,000 with respect to service performed
during any calendar year commencing on or after January
H. R. 4277—56
1, 1995, ending on or before December 31, 1999, and the
adjusted amount determined under section 218(c)(8)(B) for any
calendar year commencing on or after January 1, 2000, with
respect to service performed during such calendar year’’.
(2) AMENDMENT TO FICA.—Section 3121(b)(7)(F)(iv) of the
Internal Revenue Code of 1986 (as amended by section 11332(b)
of the Omnibus Budget Reconciliation Act of 1990) is amended
by striking ‘‘$100’’ and inserting ‘‘$1,000 with respect to service
performed during any calendar year commencing on or after
January 1, 1995, ending on or before December 31, 1999, and
the adjusted amount determined under section 218(c)(8)(B) of
the Social Security Act for any calendar year commencing on
or after January 1, 2000, with respect to service performed
during such calendar year’’.
(b) CONFORMING AMENDMENTS RELATING TO MEDICARE QUALI-
FIED GOVERNMENT EMPLOYMENT.—
(1) 
AMENDMENT
TO
SOCIAL
SECURITY
ACT.—Section
210(p)(2)(E) of the Social Security Act (42 U.S.C. 410(p)(2)(E))
is amended by striking ‘‘$100’’ and inserting ‘‘$1,000 with
respect to service performed during any calendar year commenc-
ing on or after January 1, 1995, ending on or before December
31, 1999, and the adjusted amount determined under section
218(c)(8)(B) for any calendar year commencing on or after Janu-
ary 1, 2000, with respect to service performed during such
calendar year’’.
(2) AMENDMENT
TO
FICA.—Section 3121(u)(2)(B)(ii)(V) of
the Internal Revenue Code of 1986 is amended by striking
‘‘$100’’ and inserting ‘‘$1,000 with respect to service performed
during any calendar year commencing on or after January
1, 1995, ending on or before December 31, 1999, and the
adjusted amount determined under section 218(c)(8)(B) of the
Social Security Act for any calendar year commencing on or
after January 1, 2000, with respect to service performed during
such calendar year’’.
(c) AUTHORITY FOR STATES TO MODIFY COVERAGE AGREEMENTS
WITH RESPECT TO ELECTION OFFICIALS AND ELECTION WORKERS.—
Section 218(c)(8) of the Social Security Act (42 U.S.C. 418(c)(8))
is amended—
(1) by striking ‘‘on or after January 1, 1968,’’ and inserting
‘‘at any time’’;
(2) by striking ‘‘$100’’ and inserting ‘‘$1,000 with respect
to service performed during any calendar year commencing
on or after January 1, 1995, ending on or before December
31, 1999, and the adjusted amount determined under subpara-
graph (B) for any calendar year commencing on or after January
1, 2000, with respect to service performed during such calendar
year’’; and
(3) by striking the last sentence and inserting the following
new sentence: ‘‘Any modification of an agreement pursuant
to this paragraph shall be effective with respect to services
performed in and after the calendar year in which the modifica-
tion is mailed or delivered by other means to the Secretary.’’.
(d) INDEXATION OF EXEMPT AMOUNT.—Section 218(c)(8) of such
Act (as amended by subsection (c)) is further amended—
(1) by inserting ‘‘(A)’’ after ‘‘(8)’’; and
(2) by adding at the end the following new subparagraph:
H. R. 4277—57
‘‘(B) For each year after 1999, the Secretary shall adjust the
amount referred to in subparagraph (A) at the same time and
in the same manner as is provided under section 215(a)(1)(B)(ii)
with respect to the amounts referred to in section 215(a)(1)(B)(i),
except that—
‘‘(i) for purposes of this subparagraph, 1997 shall be sub-
stituted for the calendar year referred to in section
215(a)(1)(B)(ii)(II), and
‘‘(ii) such amount as so adjusted, if not a multiple of $100,
shall be rounded to the next higher multiple of $100 where
such amount is a multiple of $50 and to the nearest multiple
of $100 in any other case.
The Secretary shall determine and publish in the Federal Register
each adjusted amount determined under this subparagraph not
later than November 1 preceding the year for which the adjustment
is made.’’.
(e) EFFECTIVE DATE.—The amendments made by subsections
(a), (b), and (c) shall apply with respect to service performed on
or after January 1, 1995.
SEC. 304. USE OF SOCIAL SECURITY NUMBERS BY STATES AND LOCAL
GOVERNMENTS AND FEDERAL DISTRICT COURTS FOR
JURY SELECTION PURPOSES.
(a) IN GENERAL.—Section 205(c)(2) of the Social Security Act
(42 U.S.C. 405(c)(2)) is amended—
(1) in subparagraph (B)(i), by striking ‘‘(E)’’ in the matter
preceding subclause (I) and inserting ‘‘(F)’’;
(2) by redesignating subparagraphs (E) and (F) as subpara-
graphs (F) and (G), respectively; and
(3) by inserting after subparagraph (D) the following:
‘‘(E)(i) It is the policy of the United States that—
‘‘(I) any State (or any political subdivision of a State) may
utilize the social security account numbers issued by the Sec-
retary for the additional purposes described in clause (ii) if
such numbers have been collected and are otherwise utilized
by such State (or political subdivision) in accordance with
applicable law, and
‘‘(II) any district court of the United States may use, for
such additional purposes, any such social security account num-
bers which have been so collected and are so utilized by any
State.
‘‘(ii) The additional purposes described in this clause are the
following:
‘‘(I) Identifying duplicate names of individuals on master
lists used for jury selection purposes.
‘‘(II) Identifying on such master lists those individuals who
are ineligible to serve on a jury by reason of their conviction
of a felony.
‘‘(iii) To the extent that any provision of Federal law enacted
before the date of the enactment of this subparagraph is inconsistent
with the policy set forth in clause (i), such provision shall, on
and after that date, be null, void, and of no effect.
‘‘(iv) For purposes of this subparagraph, the term ‘State’ has
the meaning such term has in subparagraph (D).’’.
(b) CONFORMING AMENDMENT.—Section 1140(a)(2) of such Act
(42 U.S.C. 1320b–10(a)(2)) is amended by striking ‘‘205(c)(2)(E)’’
and inserting ‘‘205(c)(2)(F)’’.
H. R. 4277—58
(c) EFFECTIVE DATE.—The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 305. AUTHORIZATION FOR ALL STATES TO EXTEND COVERAGE
TO STATE AND LOCAL POLICE OFFICERS AND FIRE-
FIGHTERS UNDER EXISTING COVERAGE AGREEMENTS.
(a) IN GENERAL.—Section 218(l) of the Social Security Act (42
U.S.C. 418(l)) is amended—
(1) in paragraph (1), by striking ‘‘(1)’’ after ‘‘(l)’’, and by
striking ‘‘the State of’’ and all that follows through ‘‘prior to
the date of enactment of this subsection’’ and inserting ‘‘a
State entered into pursuant to this section’’; and
(2) by striking paragraph (2).
(b) CONFORMING AMENDMENT.—Section 218(d)(8)(D) of such Act
(42 U.S.C. 418(d)(8)(D)) is amended by striking ‘‘agreements with
the States named in’’ and inserting ‘‘State agreements modified
as provided in’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply with respect to modifications filed by States after the
date of the enactment of this Act.
SEC. 306. LIMITED EXEMPTION FOR CANADIAN MINISTERS FROM CER-
TAIN SELF-EMPLOYMENT TAX LIABILITY.
(a) IN GENERAL.—Notwithstanding any other provision of law,
if—
(1) an individual performed services described in section
1402(c)(4) of the Internal Revenue Code of 1986 which are
subject to tax under section 1401 of such Code,
(2) such services were performed in Canada at a time
when no agreement between the United States and Canada
pursuant to section 233 of the Social Security Act was in
effect, and
(3) such individual was required to pay contributions on
the earnings from such services under the social insurance
system of Canada,
then such individual may file a certificate under this section in
such form and manner, and with such official, as may be prescribed
in regulations issued under chapter 2 of such Code. Upon the
filing of such certificate, notwithstanding any judgment which has
been entered to the contrary, such individual shall be exempt from
payment of such tax with respect to services described in para-
graphs (1) and (2) and from any penalties or interest for failure
to pay such tax or to file a self-employment tax return as required
under section 6017 of such Code.
(b) PERIOD FOR FILING.—A certificate referred to in subsection
(a) may be filed only during the 180-day period commencing with
the date on which the regulations referred to in subsection (a)
are issued.
(c) TAXABLE YEARS AFFECTED BY CERTIFICATE.—A certificate
referred to in subsection (a) shall be effective for taxable years
ending after December 31, 1978, and before January 1, 1985.
(d) RESTRICTION ON CREDITING OF EXEMPT SELF-EMPLOYMENT
INCOME.—In any case in which an individual is exempt under
this section from paying a tax imposed under section 1401 of the
Internal Revenue Code of 1986, any income on which such tax
would have been imposed but for such exemption shall not con-
stitute self-employment income under section 211(b) of the Social
Security Act (42 U.S.C. 411(b)), and, if such individual’s primary
H. R. 4277—59
insurance amount has been determined under section 215 of such
Act (42 U.S.C. 415), notwithstanding section 215(f)(1) of such Act,
the Secretary of Health and Human Services (prior to March 31,
1995) or the Commissioner of Social Security (after March 30,
1995) shall recompute such primary insurance amount so as to
take into account the provisions of this subsection. The recomputa-
tion under this subsection shall be effective with respect to benefits
for months following approval of the certificate of exemption.
SEC. 307. EXCLUSION 
OF 
TOTALIZATION 
BENEFITS 
FROM 
THE
APPLICATION OF THE WINDFALL ELIMINATION PROVI-
SION.
(a) IN GENERAL.—Section 215(a)(7) of the Social Security Act
(42 U.S.C. 415(a)(7)) is amended—
(1) in subparagraph (A), by striking ‘‘but excluding’’ and
all that follows through ‘‘1937’’ and inserting ‘‘but excluding
(I) a payment under the Railroad Retirement Act of 1974 or
1937, and (II) a payment by a social security system of a
foreign country based on an agreement concluded between the
United States and such foreign country pursuant to section
233’’; and
(2) in subparagraph (E), by inserting after ‘‘in the case
of an individual’’ the following: ‘‘whose eligibility for old-age
or disability insurance benefits is based on an agreement con-
cluded pursuant to section 233 or an individual’’.
(b) CONFORMING AMENDMENT RELATING TO BENEFITS UNDER
1939 ACT.—Section 215(d)(3) of such Act (42 U.S.C. 415(d)(3)) is
amended by striking ‘‘but excluding’’ and all that follows through
‘‘1937’’ and inserting ‘‘but excluding (I) a payment under the Rail-
road Retirement Act of 1974 or 1937, and (II) a payment by a
social security system of a foreign country based on an agreement
concluded between the United States and such foreign country
pursuant to section 233’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply (notwithstanding section 215(f)(1) of the Social Security
Act (42 U.S.C. 415(f)(1))) with respect to benefits payable for months
after December 1994.
SEC. 308. EXCLUSION OF MILITARY RESERVISTS FROM APPLICATION
OF THE GOVERNMENT PENSION OFFSET AND WINDFALL
ELIMINATION PROVISIONS.
(a) EXCLUSION
FROM GOVERNMENT PENSION OFFSET PROVI-
SIONS.—Subsections (b)(4), (c)(2), (e)(7), (f)(2), and (g)(4) of section
202 of the Social Security Act (42 U.S.C. 402 (b)(4), (c)(2), (e)(7),
(f)(2), and (g)(4)) are each amended—
(1) in subparagraph (A)(ii), by striking ‘‘unless subpara-
graph (B) applies.’’;
(2) in subparagraph (A), by striking ‘‘The’’ in the matter
following clause (ii) and inserting ‘‘unless subparagraph (B)
applies. The’’; and
(3) in subparagraph (B), by redesignating the existing mat-
ter as clause (ii), and by inserting before such clause (ii) (as
so redesignated) the following:
‘‘(B)(i) Subparagraph (A)(i) shall not apply with respect to
monthly periodic benefits based wholly on service as a member
of a uniformed service (as defined in section 210(m)).’’.
(b) EXCLUSION FROM WINDFALL ELIMINATION PROVISIONS.—Sec-
tion 215(a)(7)(A) of such Act (as amended by section 307(a) of
H. R. 4277—60
this Act) and section 215(d)(3) of such Act (as amended by section
307(b) of this Act) are each further amended—
(1) by striking ‘‘and’’ before ‘‘(II)’’; and
(2) by striking ‘‘section 233’’ and inserting ‘‘section 233,
and (III) a payment based wholly on service as a member
of a uniformed service (as defined in section 210(m))’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply (notwithstanding section 215(f) of the Social Security
Act) with respect to benefits payable for months after December
1994.
SEC. 309. REPEAL OF THE FACILITY-OF-PAYMENT PROVISION.
(a) REPEAL OF RULE PRECLUDING REDISTRIBUTION UNDER FAM-
ILY MAXIMUM.—Section 203(i) of the Social Security Act (42 U.S.C.
403(i)) is repealed.
(b) COORDINATION UNDER FAMILY MAXIMUM OF REDUCTION IN
BENEFICIARY’S AUXILIARY BENEFITS WITH SUSPENSION OF AUXILIARY
BENEFITS OF OTHER BENEFICIARY UNDER EARNINGS TEST.—Section
203(a)(4) of such Act (42 U.S.C. 403(a)(4)) is amended by striking
‘‘section 222(b). Whenever’’ and inserting the following: ‘‘section
222(b). Notwithstanding the preceding sentence, any reduction
under this subsection in the case of an individual who is entitled
to a benefit under subsection (b), (c), (d), (e), (f), (g), or (h) of
section 202 for any month on the basis of the same wages and
self-employment income as another person—
‘‘(A) who also is entitled to a benefit under subsection
(b), (c), (d), (e), (f), (g), or (h) of section 202 for such month,
‘‘(B) who does not live in the same household as such
individual, and
‘‘(C) whose benefit for such month is suspended (in whole
or in part) pursuant to subsection (h)(3) of this section,
shall be made before the suspension under subsection (h)(3). When-
ever’’.
(c) CONFORMING AMENDMENT APPLYING EARNINGS REPORTING
REQUIREMENT DESPITE SUSPENSION OF BENEFITS.—The third sen-
tence of section 203(h)(1)(A) of such Act (42 U.S.C. 403(h)(1)(A))
is amended by striking ‘‘Such report need not be made’’ and all
that follows through ‘‘The Secretary may grant’’ and inserting the
following: ‘‘Such report need not be made for any taxable year—
‘‘(i) beginning with or after the month in which such
individual attained age 70, or
‘‘(ii) if benefit payments for all months (in such taxable
year) in which such individual is under age 70 have been
suspended under the provisions of the first sentence of para-
graph (3) of this subsection, unless—
‘‘(I) such individual is entitled to benefits under sub-
section (b), (c), (d), (e), (f), (g), or (h) of section 202,
‘‘(II) such benefits are reduced under subsection (a)
of this section for any month in such taxable year, and
‘‘(III) in any such month there is another person who
also is entitled to benefits under subsection (b), (c), (d),
(e), (f), (g), or (h) of section 202 on the basis of the same
wages and self-employment income and who does not live
in the same household as such individual.
The Secretary may grant’’.
(d) CONFORMING AMENDMENT DELETING SPECIAL INCOME TAX
TREATMENT
OF BENEFITS NO LONGER REQUIRED
BY REASON
OF
H. R. 4277—61
REPEAL.—Section 86(d)(1) of the Internal Revenue Code of 1986
(relating to income tax on social security benefits) is amended
by striking the last sentence.
(e) EFFECTIVE DATES.—
(1) The amendments made by subsections (a), (b), and
(c) shall apply with respect to benefits payable for months
after December 1995.
(2) The amendment made by subsection (d) shall apply
with respect to benefits received after December 31, 1995, in
taxable years ending after such date.
SEC. 310. MAXIMUM FAMILY BENEFITS IN GUARANTEE CASES.
(a) IN GENERAL.—Section 203(a) of the Social Security Act
(42 U.S.C. 403(a)) is amended by adding at the end the following
new paragraph:
‘‘(10)(A) Subject to subparagraphs (B) and (C)—
‘‘(i) the total monthly benefits to which beneficiaries may
be entitled under sections 202 and 223 for a month on the
basis of the wages and self-employment income of an individual
whose primary insurance amount is computed under section
215(a)(2)(B)(i) shall equal the total monthly benefits which
were authorized by this section with respect to such individual’s
primary insurance amount for the last month of his prior
entitlement to disability insurance benefits, increased for this
purpose by the general benefit increases and other increases
under section 215(i) that would have applied to such total
monthly benefits had the individual remained entitled to
disability insurance benefits until the month in which he
became entitled to old-age insurance benefits or reentitled to
disability insurance benefits or died, and
‘‘(ii) the total monthly benefits to which beneficiaries may
be entitled under sections 202 and 223 for a month on the
basis of the wages and self-employment income of an individual
whose primary insurance amount is computed under section
215(a)(2)(C) shall equal the total monthly benefits which were
authorized by this section with respect to such individual’s
primary insurance amount for the last month of his prior
entitlement to disability insurance benefits.
‘‘(B) In any case in which—
‘‘(i) the total monthly benefits with respect to such individ-
ual’s primary insurance amount for the last month of his prior
entitlement to disability insurance benefits was computed under
paragraph (6), and
‘‘(ii) the individual’s primary insurance amount is computed
under subparagraph (B)(i) or (C) of section 215(a)(2) by reason
of the individual’s entitlement to old-age insurance benefits
or death,
the total monthly benefits shall equal the total monthly benefits
that would have been authorized with respect to the primary insur-
ance amount for the last month of his prior entitlement to disability
insurance benefits if such total monthly benefits had been computed
without regard to paragraph (6).
‘‘(C) This paragraph shall apply before the application of para-
graph (3)(A), and before the application of section 203(a)(1) of this
Act as in effect in December 1978.’’.
(b) CONFORMING AMENDMENT.—Section 203(a)(8) of such Act
(42 U.S.C. 403(a)(8)) is amended by striking ‘‘Subject to paragraph
H. R. 4277—62
(7),’’ and inserting ‘‘Subject to paragraph (7) and except as otherwise
provided in paragraph (10)(C),’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply for the purpose of determining the total monthly benefits
to which beneficiaries may be entitled under sections 202 and
223 of the Social Security Act based on the wages and self-employ-
ment income of an individual who—
(1) becomes entitled to an old-age insurance benefit under
section 202(a) of such Act,
(2) becomes reentitled to a disability insurance benefit
under section 223 of such Act, or
(3) dies,
after December 1995.
SEC. 311. AUTHORIZATION FOR DISCLOSURE OF SOCIAL SECURITY
INFORMATION FOR PURPOSES OF PUBLIC OR PRIVATE
EPIDEMIOLOGICAL AND SIMILAR RESEARCH.
(a) IN GENERAL.—Section 1106 of the Social Security Act (42
U.S.C. 1306) is amended—
(1) by redesignating subsections (d) and (e) as subsections
(e) and (f), respectively;
(2) in subsection (f) (as so redesignated), by striking ‘‘sub-
section (d)’’ and inserting ‘‘subsection (e)’’; and
(3) by inserting after subsection (c) the following new sub-
section:
‘‘(d) Notwithstanding any other provision of this section, in
any case in which—
‘‘(1) information regarding whether an individual is shown
on the records of the Secretary as being alive or deceased
is requested from the Secretary for purposes of epidemiological
or similar research which the Secretary finds may reasonably
be expected to contribute to a national health interest, and
‘‘(2) the requester agrees to reimburse the Secretary for
providing such information and to comply with limitations on
safeguarding and rerelease or redisclosure of such information
as may be specified by the Secretary,
the Secretary shall comply with such request, except to the extent
that compliance with such request would constitute a violation
of the terms of any contract entered into under section 205(r).’’.
(b) AVAILABILITY OF INFORMATION RETURNS REGARDING WAGES
PAID EMPLOYEES.—Section 6103(l)(5) of the Internal Revenue Code
of 1986 (relating to disclosure of returns and return information
to the Department of Health and Human Services for purposes
other than tax administration) is amended—
(1) by striking ‘‘for the purpose of’’ and inserting ‘‘for the
purpose of—’’;
(2) by striking ‘‘carrying out, in accordance with an agree-
ment’’ and inserting the following:
‘‘(A) carrying out, in accordance with an agreement’’;
(3) by striking ‘‘program.’’ and inserting ‘‘program; or’’;
and
(4) by adding at the end the following new subparagraph:
‘‘(B) providing information regarding the mortality sta-
tus of individuals for epidemiological and similar research
in accordance with section 1106(d) of the Social Security
Act.’’.
H. R. 4277—63
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply with respect to requests for information made after
the date of the enactment of this Act.
SEC. 312. MISUSE OF SYMBOLS, EMBLEMS, OR NAMES IN REFERENCE
TO SOCIAL SECURITY ADMINISTRATION OR DEPARTMENT
OF HEALTH AND HUMAN SERVICES.
(a) PROHIBITION OF UNAUTHORIZED REPRODUCTION, REPRINT-
ING, 
OR
DISTRIBUTION
FOR
FEE
OF
CERTAIN
OFFICIAL
PUBLICATIONS.—Section 1140(a) of the Social Security Act (42
U.S.C. 1320b–10(a)) is amended—
(1) by redesignating paragraphs (1) and (2) as subpara-
graphs (A) and (B), respectively;
(2) by inserting ‘‘(1)’’ after ‘‘(a)’’; and
(3) by adding at the end the following new paragraph:
‘‘(2) No person may, for a fee, reproduce, reprint, or distribute
any item consisting of a form, application, or other publication
of the Social Security Administration or of the Department of Health
and Human Services unless such person has obtained specific,
written authorization for such activity in accordance with regula-
tions which the Secretary shall prescribe.’’.
(b) ADDITION TO PROHIBITED WORDS, LETTERS, SYMBOLS, AND
EMBLEMS.—Paragraph (1) of section 1140(a) of such Act (as redesig-
nated by subsection (a)) is further amended—
(1) in subparagraph (A) (as redesignated), by striking
‘‘Administration’, the letters ‘SSA’ or ‘HCFA’,’’ and inserting
‘‘Administration’, ‘Department of Health and Human Services’,
‘Health and Human Services’, ‘Supplemental Security Income
Program’, or ‘Medicaid’, the letters ‘SSA’, ‘HCFA’, ‘DHHS’,
‘HHS’, or ‘SSI’,’’; and
(2) in subparagraph (B) (as amended by section 304 and
as redesignated), by striking ‘‘Social Security Administration’’
each place it appears and inserting ‘‘Social Security Administra-
tion, Health Care Financing Administration, or Department
of Health and Human Services’’, by striking ‘‘or of the Health
Care Financing Administration’’, and by inserting ‘‘or the Medi-
care card,’’ after ‘‘205(c)(2)(F)’’.
(c) EXEMPTION FOR USE OF WORDS, LETTERS, SYMBOLS, AND
EMBLEMS OF STATE AND LOCAL GOVERNMENT AGENCIES BY SUCH
AGENCIES.—Paragraph (1) of section 1140(a) of such Act (as redesig-
nated by subsection (a)) is further amended by adding at the end
the following new sentence: ‘‘The preceding provisions of this sub-
section shall not apply with respect to the use by any agency
or instrumentality of a State or political subdivision of a State
of any words or letters which identify an agency or instrumentality
of such State or of a political subdivision of such State or the
use by any such agency or instrumentality of any symbol or emblem
of an agency or instrumentality of such State or a political subdivi-
sion of such State.’’.
(d) 
INCLUSION
OF
REASONABLENESS
STANDARD.—Section
1140(a)(1) of such Act (as amended by the preceding provisions
of this section) is further amended, in the matter following subpara-
graph (B) (as redesignated), by striking ‘‘convey’’ and inserting
‘‘convey, or in a manner which reasonably could be interpreted
or construed as conveying,’’.
(e) INEFFECTIVENESS OF DISCLAIMERS.—Subsection (a) of section
1140 of such Act (as amended by the preceding provisions of this
H. R. 4277—64
section) is further amended by adding at the end the following
new paragraph:
‘‘(3) Any determination of whether the use of one or more
words, letters, symbols, or emblems (or any combination or variation
thereof) in connection with an item described in paragraph (1)
or the reproduction, reprinting, or distribution of an item described
in paragraph (2) is a violation of this subsection shall be made
without regard to any inclusion in such item (or any so reproduced,
reprinted, or distributed copy thereof) of a disclaimer of affiliation
with the United States Government or any particular agency or
instrumentality thereof.’’.
(f) VIOLATIONS WITH RESPECT TO INDIVIDUAL ITEMS.—Section
1140(b)(1) of such Act (42 U.S.C. 1320b–10(b)(1)) is amended by
adding at the end the following new sentence: ‘‘In the case of
any items referred to in subsection (a)(1) consisting of pieces of
mail, each such piece of mail which contains one or more words,
letters, symbols, or emblems in violation of subsection (a) shall
represent a separate violation. In the case of any item referred
to in subsection (a)(2), the reproduction, reprinting, or distribution
of such item shall be treated as a separate violation with respect
to each copy thereof so reproduced, reprinted, or distributed.’’.
(g) ELIMINATION OF CAP ON AGGREGATE LIABILITY AMOUNT.—
(1) REPEAL.—Paragraph (2) of section 1140(b) of such Act
(42 U.S.C. 1320b–10(b)(2)) is repealed.
(2) CONFORMING
AMENDMENTS.—Section 1140(b) of such
Act is further amended—
(A) by striking ‘‘(1) Subject to paragraph (2), the’’ and
inserting ‘‘The’’;
(B) by redesignating subparagraphs (A) and (B) as
paragraphs (1) and (2), respectively; and
(C) in paragraph (1) (as redesignated), by striking
‘‘subparagraph (B)’’ and inserting ‘‘paragraph (2)’’.
(h) REMOVAL OF FORMAL DECLINATION REQUIREMENT.—Section
1140(c)(1) of such Act (42 U.S.C. 1320b–10(c)(1)) is amended by
inserting ‘‘and the first sentence of subsection (c)’’ after ‘‘and (i)’’.
(i) PENALTIES RELATING TO SOCIAL SECURITY ADMINISTRATION
DEPOSITED
IN OASI TRUST FUND, AND
PENALTIES
RELATED
TO
HEALTH CARE FINANCING ADMINISTRATION DEPOSITED IN THE HI
AND SMI TRUST FUNDS.—Section 1140(c)(2) of such Act (42 U.S.C.
1320b–10(c)(2)) is amended in the second sentence by striking
‘‘United States.’’ and inserting ‘‘United States, except that (A) to
the extent that such amounts are recovered under this section
as penalties imposed for misuse of words, letters, symbols, or
emblems relating to the Social Security Administration, such
amounts shall be deposited into the Federal Old-Age and Survivors
Insurance Trust Fund, and (B) to the extent that such amounts
are recovered under this section as penalties imposed for misuse
of words, letters, symbols, or emblems relating to the Department
of Health and Human Services, such amounts shall be deposited
into the Federal Hospital Insurance Trust Fund or the Federal
Supplementary Medical Insurance Trust Fund, as appropriate.’’.
(j) ENFORCEMENT.—Section 1140 of such Act (42 U.S.C. 1320b–
10) is amended by adding at the end the following new subsection:
‘‘(d) The preceding provisions of this section may be enforced
through the Office of the Inspector General of the Department
of Health and Human Services.’’.
(k) REPORTS.—
H. R. 4277—65
(1) IN
GENERAL.—The Secretary of Health and Human
Services and the Commissioner of Social Security shall each
submit to the Committee on Ways and Means of the House
of Representatives and the Committee on Finance of the Senate
3 reports on the operation of section 1140 of the Social Security
Act with respect to the Social Security Administration or the
Department of Health and Human Services during the period
covered by the report, which shall specify—
(A) the number of complaints of violations of such
section received by the Social Security Administration or
the Department of Health and Human Services during
the period,
(B) the number of cases in which the Social Security
Administration or the Department, during the period, sent
a notice of violation of such section requesting that an
individual cease activities in violation of such section,
(C) the number of cases in which the Social Security
Administration or the Department formally proposed a civil
money penalty in a demand letter during the period,
(D) the total amount of civil money penalties assessed
by the Social Security Administration or the Department
under this section during the period,
(E) the number of requests for hearings filed during
the period by the Social Security Administration or the
Department pursuant to sections 1140(c)(1) and 1128A(c)(2)
of the Social Security Act,
(F) the disposition during the period of hearings filed
pursuant to sections 1140(c)(1) and 1128A(c)(2) of the Social
Security Act, and
(G) the total amount of civil money penalties collected
under this section and deposited into the Federal Old-
Age and Survivors Insurance Trust Fund or the Health
Insurance and Supplementary Medical Insurance Trust
Funds, as applicable, during the period.
(2) WHEN
DUE.—The reports required by paragraph (1)
shall be submitted not later than December 1, 1995, not later
than December 1, 1997, and not later than December 1, 1999,
respectively.
(l) PROHIBITION OF MISUSE OF DEPARTMENT OF THE TREASURY
NAMES, SYMBOLS, ETC.—
(1) GENERAL RULE.—Subchapter II of chapter 3 of title
31, United States Code, is amended by adding at the end
thereof the following new section:
‘‘§ 333. Prohibition of misuse of Department of the Treasury
names, symbols, etc.
‘‘(a) GENERAL RULE.—No person may use, in connection with,
or as a part of, any advertisement, solicitation, business activity,
or product, whether alone or with other words, letters, symbols,
or emblems—
‘‘(1) the words ‘Department of the Treasury’, or the name
of any service, bureau, office, or other subdivision of the Depart-
ment of the Treasury,
‘‘(2) the titles ‘Secretary of the Treasury’ or ‘Treasurer
of the United States’ or the title of any other officer or employee
of the Department of the Treasury,
H. R. 4277—66
‘‘(3) the abbreviations or initials of any entity referred
to in paragraph (1),
‘‘(4) the words ‘United States Savings Bond’ or the name
of any other obligation issued by the Department of the Treas-
ury,
‘‘(5) any symbol or emblem of an entity referred to in
paragraph (1) (including the design of any envelope or station-
ary used by such an entity), and
‘‘(6) any colorable imitation of any such words, titles, abbre-
viations, initials, symbols, or emblems,
in a manner which could reasonably be interpreted or construed
as conveying the false impression that such advertisement, solicita-
tion, business activity, or product is in any manner approved,
endorsed, sponsored, or authorized by, or associated with, the
Department of the Treasury or any entity referred to in paragraph
(1) or any officer or employee thereof.
‘‘(b) TREATMENT
OF
DISCLAIMERS.—Any determination of
whether a person has violated the provisions of subsection (a)
shall be made without regard to any use of a disclaimer of affiliation
with the United States Government or any particular agency or
instrumentality thereof.
‘‘(c) CIVIL PENALTY.—
‘‘(1) IN
GENERAL.—The Secretary of the Treasury may
impose a civil penalty on any person who violates the provisions
of subsection (a).
‘‘(2) AMOUNT OF PENALTY.—The amount of the civil penalty
imposed by paragraph (1) shall not exceed $5,000 for each
use of any material in violation of subsection (a). If such use
is in a broadcast or telecast, the preceding sentence shall be
applied by substituting ‘$25,000’ for ‘$5,000’.
‘‘(3) TIME LIMITATIONS.—
‘‘(A) ASSESSMENTS.—The Secretary of the Treasury
may assess any civil penalty under paragraph (1) at any
time before the end of the 3-year period beginning on
the date of the violation with respect to which such penalty
is imposed.
‘‘(B) CIVIL ACTION.—The Secretary of the Treasury may
commence a civil action to recover any penalty imposed
under this subsection at any time before the end of the
2-year period beginning on the date on which such penalty
was assessed.
‘‘(4) COORDINATION WITH SUBSECTION (d).—No penalty may
be assessed under this subsection with respect to any violation
after a criminal proceeding with respect to such violation has
been commenced under subsection (d).
‘‘(d) CRIMINAL PENALTY.—
‘‘(1) IN GENERAL.—If any person knowingly violates sub-
section (a), such person shall, upon conviction thereof, be fined
not more than $10,000 for each such use or imprisoned not
more than 1 year, or both. If such use is in a broadcast or
telecast, the preceding sentence shall be applied by substituting
‘$50,000’ for ‘$10,000’.
‘‘(2) TIME
LIMITATIONS.—No person may be prosecuted,
tried, or punished under paragraph (1) for any violation of
subsection (a) unless the indictment is found or the information
instituted during the 3-year period beginning on the date of
the violation.
H. R. 4277—67
‘‘(3) COORDINATION
WITH
SUBSECTION (c).—No criminal
proceeding may be commenced under this subsection with
respect to any violation if a civil penalty has previously been
assessed under subsection (c) with respect to such violation.’’.
(2) CLERICAL AMENDMENT.—The analysis for chapter 3 of
title 31, United States Code, is amended by adding after the
item relating to section 332 the following new item:
‘‘333. Prohibition of misuse of Department of the Treasury names, symbols, etc.’’.
(3) REPORT.—Not later than May 1, 1996, the Secretary
of the Treasury shall submit a report to the Committee on
Ways and Means of the House of Representatives and the
Committee on Finance of the Senate on the implementation
of the amendments made by this section. Such report shall
include the number of cases in which the Secretary has notified
persons of violations of section 333 of title 31, United States
Code (as added by subsection (a)), the number of prosecutions
commenced under such section, and the total amount of the
penalties collected in such prosecutions.
(m) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in paragraph (2), the
amendments made by this section shall apply with respect
to violations occurring after March 31, 1995.
(2) PROHIBITION OF MISUSE OF DEPARTMENT OF THE TREAS-
URY NAMES, SYMBOLS, ETC.—Subsection (l)(3) shall take effect
on the date of the enactment of this Act, and the amendments
made by paragraphs (1) and (2) of subsection (l) shall apply
with respect to violations occurring after such date.
SEC. 313. INCREASED PENALTIES FOR UNAUTHORIZED DISCLOSURE
OF SOCIAL SECURITY INFORMATION.
(a) UNAUTHORIZED DISCLOSURE.—Section 1106(a) of the Social
Security Act (42 U.S.C. 1306(a)) is amended—
(1) by striking ‘‘misdemeanor’’ and inserting ‘‘felony’’;
(2) by striking ‘‘$1,000’’ and inserting ‘‘$10,000 for each
occurrence of a violation’’; and
(3) by striking ‘‘one year’’ and inserting ‘‘5 years’’.
(b) UNAUTHORIZED DISCLOSURE BY FRAUD.—Section 1107(b) of
such Act (42 U.S.C. 1307(b)) is amended—
(1) by inserting ‘‘social security account number,’’ after
‘‘information as to the’’;
(2) by striking ‘‘misdemeanor’’ and inserting ‘‘felony’’;
(3) by striking ‘‘$1,000’’ and inserting ‘‘$10,000 for each
occurrence of a violation’’; and
(4) by striking ‘‘one year’’ and inserting ‘‘5 years’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall apply to violations occurring on or after the date of the
enactment of this Act.
SEC. 314. INCREASE IN AUTHORIZED PERIOD FOR EXTENSION OF TIME
TO FILE ANNUAL EARNINGS REPORT.
(a) IN GENERAL.—Section 203(h)(1)(A) of the Social Security
Act (42 U.S.C. 403(h)(1)(A)) is amended in the last sentence by
striking ‘‘three months’’ and inserting ‘‘four months’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall apply with respect to reports of earnings for taxable years
ending on or after December 31, 1994.