I
103D CONGRESS
1ST SESSION
H. R. 623
To establish the Social Security Administration as an independent agency,
which shall be headed by a Social Security Board, and which shall
be responsible for the administration of the old-age, survivors, and dis-
ability insurance program under title II of the Social Security Act and
the supplemental security income program under title XVI of such Act.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 26, 1993
Mr. MCCANDLESS introduced the following bill; which was referred to the
Committee on Ways and Means
A BILL
To establish the Social Security Administration as an inde-
pendent agency, which shall be headed by a Social Secu-
rity Board, and which shall be responsible for the admin-
istration of the old-age, survivors, and disability insur-
ance program under title II of the Social Security Act
and the supplemental security income program under
title XVI of such Act.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
This Act may be cited as the ‘‘Social Security Reor-
ganization Act of 1993’’.
TABLE OF CONTENTS
Sec. 1. Short title and table of contents.
Sec. 2. Declaration of purpose.
TITLE I—ESTABLISHMENT OF THE SOCIAL SECURITY
ADMINISTRATION
Sec. 101. Establishment of the Social Security Administration as a separate,
independent agency; responsibilities of the agency.
Sec. 102. Social Security Board; Commissioner; Deputy Commissioner; Bene-
ficiary Ombudsman; other officers.
Sec. 103. Personnel; budgetary matters; facilities and procurement; seal of
office.
Sec. 104. Transfers to the new Social Security Administration.
TITLE II—MISCELLANEOUS PROVISIONS AND CONFORMING
AMENDMENTS
Sec. 201. Contributor and beneficiary bill of rights.
Sec. 202. Amendments to titles II and XVI of the Social Security Act.
Sec. 203. Other Amendments.
Sec. 204. Rules of construction.
TITLE III—EFFECTIVE DATES AND TRANSITIONAL RULES
Sec. 301. Effective dates.
Sec. 302. Transitional rules.
SEC. 2. DECLARATION OF PURPOSE.
The purposes of this Act are as follows:
(1) to establish the Social Security Administra-
tion as an independent agency, separate from the
Department of Health and Human Services;
(2) to charge the Social Security Administra-
tion with administration of the old-age, survivors,
and disability insurance program and supplemental
security income program;
(3) to establish a Social Security Board as head
of the Social Security Administration and define the
powers and duties of such Board;
(4) to establish a Commissioner of Social Secu-
rity and define the powers and duties of the Com-
missioner; and
(5) to provide for delegating major management
authorities to the Board and the Commissioner.
TITLE I—ESTABLISHMENT OF THE SOCIAL
SECURITY ADMINISTRATION
SEC. 101. ESTABLISHMENT OF SOCIAL SECURITY ADMINIS-
TRATION AS A SEPARATE, INDEPENDENT
AGENCY; RESPONSIBILITIES OF THE AGENCY.
Section 701 of the Social Security Act is amended
to read as follows:
‘‘SOCIAL SECURITY ADMINISTRATION
‘‘SEC. 701. There is hereby established, as an inde-
pendent agency in the executive branch of the Govern-
ment, a Social Security Administration. It shall be the
duty of the Administration to administer the old-age, sur-
vivors, and disability insurance program under title II and
the supplemental security income program under title
XVI.’’.
SEC. 102. SOCIAL SECURITY BOARD; COMMISSIONER; DEP-
UTY COMMISSIONER; BENEFICIARY OMBUDS-
MAN; OTHER OFFICERS.
(a) IN GENERAL.—Section 702 of the Social Security
Act is amended to read as follows:
‘‘SOCIAL SECURITY BOARD; COMMISSIONER; OTHER
OFFICERS
‘‘Social Security Board
‘‘SEC. 702. (a)(1)(A) The Administration shall be
governed by a Social Security Board. The Board shall be
composed of three members appointed by the President,
by and with the advice and consent of the Senate. The
members shall be chosen, on the basis of their integrity,
impartiality, and good judgment, from among individuals
who, by reason of their education, experience, and attain-
ments, are exceptionally qualified to perform the duties
of members of the Board.
‘‘(B)(i) Except as provided in clauses (i) and (ii),
members of the Board shall be appointed for terms of six
years. A member of the Board may be removed only pur-
suant to a finding by the President of neglect of duty or
malfeasance in office. The President shall transmit any
such finding to the Speaker of the House of Representa-
tives and the Majority Leader of the Senate not later than
five days after the date on which such finding is made.
‘‘(ii) Of the members first appointed—
‘‘(I) one shall be appointed for a term ending
January 31, 1995,
‘‘(II) one shall be appointed for a term ending
January 31, 1997, and
member may continue as a member of the Board for not
longer than the 30-day period beginning on the date such
member becomes such an officer or employee.
‘‘(E) Two members of the Board shall constitute a
quorum, except that one member may hold hearings.
‘‘(F) A member of the Board shall be designated from
time to time by the President to serve as Chairperson of
the Board.
‘‘(G) The Board shall meet at the call of the Chair-
person or two members of the Board.
‘‘(2) Each member of the Board shall be compensated
at the rate provided for level II of the Executive Schedule.
‘‘(3) The Board shall—
‘‘(A) govern by regulation the old-age, survi-
vors, and disability insurance program under title II
and the supplemental security income program
under title XVI,
‘‘(B) appoint a Commissioner of Social Secu-
rity, as described in subsection (b), to act as the
chief operating officer of the Administration respon-
sible for administering such programs,
‘‘(C) constitute three of the members the Board
of Trustees of the Federal Old-Age and Survivors
Insurance Trust Fund and the Federal Disability
Insurance Trust Fund, with the Chairperson of the
Social Security Board serving as Chairperson of
such Board of Trustees,
‘‘(D) make annual budgetary recommendations
relating to the Administration and defend such rec-
ommendations before the appropriate committees of
each House of the Congress,
‘‘(E) make recommendations to the Congress
and the President as to the most effective methods
of providing economic security through social insur-
ance and as to legislation and matters of administra-
tive policy concerning such programs,
‘‘(F) provide the Congress and the President
with the ongoing actuarial and other analysis under-
taken by the Administration with respect to such
programs and any other information relating to such
programs, and
‘‘(G) conduct policy analysis and research relat-
ing to such programs.
‘‘(4)(A) The Board may prescribe such rules and reg-
ulations as the Board determines necessary or appropriate
to carry out the functions of the Administration.
‘‘(B) The Board may establish, alter, consolidate, or
discontinue such organizational units or components with-
in the Administration as the Board considers necessary
or appropriate to carry out its functions, except that this
subparagraph shall not apply with respect to any unit,
component, or position provided for by this Act.
‘‘(C) The Board may, with respect to the administra-
tion of the old-age, survivors, and disability insurance pro-
gram under title II and the supplemental security income
program under title XVI, assign duties, and delegate, or
authorize successive redelegations of, authority to act and
to render decisions, to such officers and employees as the
Board 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 Board.
‘‘Commissioner of Social Security
‘‘(b)(1) There shall be in the Administration a Com-
missioner of Social Security who shall be appointed by the
Social Security Board.
‘‘(2)(A) The Commissioner shall be appointed for a
term of five years, except that the individual first ap-
pointed to the office of Commissioner shall be appointed
for a term ending September 30, 1995. An individual ap-
pointed to a term of office as Commissioner after the com-
mencement of such term may serve under such appoint-
ment only for the remainder of such term. An individual
may, at the request of the Chairperson of the Board, serve
as Commissioner after the expiration of his or her term
for not more than one year until his or her successor has
taken office. An individual may be appointed as Commis-
sioner for additional terms.
‘‘(B) An individual may be removed from the office
of Commissioner before completion of his or her term only
for cause found by the Board.
‘‘(3) The Commissioner shall be compensated at the
rate provided for level II of the Executive Schedule.
‘‘(4) The Commissioner shall—
‘‘(A) constitute the chief operating officer of the
Administration, responsible for administering, in ac-
cordance with applicable statutes and regulations,
the old-age, survivors, and disability insurance pro-
gram under title II and the supplemental security
income program under title XVI,
‘‘(B) establish and maintain an efficient and ef-
fective operational structure for the Administration,
‘‘(C) devise and implement long-term plans to
promote and maintain the effective implementation
of such programs,
‘‘(D) make annual budgetary recommendations
of the Administration for the ongoing administrative
costs of the Administration and defend such rec-
ommendations before the Board and before the ap-
propriate Committees of each House of the Con-
gress,
‘‘(E) advise the Board and the Congress of the
effect on the administration of such programs of
proposed legislative changes in such programs,
‘‘(F) serve as Secretary of the Board of Trust-
ees of the Federal Old-Age, Survivors, and Disability
Insurance Trust Fund and the Federal Disability
Insurance Trust Fund, and
‘‘(G) report in December of each year to the
Board for transmittal to the Congress concerning
the administrative endeavors and accomplishments
of the Administration.
Any reference to the Board in this Act or any other provi-
sion of law in connection with the exercise of a function
of the Board which is delegated to the Commissioner pur-
suant to this section shall be considered a reference to the
Commissioner.
‘‘Deputy Commissioner of Social Security
‘‘(c)(1) There shall be in the Office of the Commis-
sioner a Deputy Commissioner, who shall be appointed by
the Board. The Deputy Commissioner shall be appointed
for a term coextensive with the term of the Commissioner
and may be removed by the Board only for cause.
‘‘(2) The Deputy Commissioner shall be compensated
at the rate provided for level III of the Executive Schedule.
‘‘(3) The Deputy Commissioner shall perform such
duties and exercise such powers as the Commissioner shall
from time to time assign or delegate. The Deputy Com-
missioner shall be Acting Commissioner of Social Security
during the absence or disability of the Commissioner and,
unless the Board designates another officer of the Govern-
ment, in the event of a vacancy in the office of Com-
missioner.
‘‘Beneficiary Ombudsman
‘‘(d)(1) The Board shall by regulation establish in the
Administration an Office of the Beneficiary Ombudsman,
to be headed by a Beneficiary Ombudsman appointed by
the Board.
‘‘(2) The Beneficiary Ombudsman shall be appointed
for a term of five years, except that the individual first
appointed to the office of Beneficiary Ombudsman shall
be appointed for a term ending September 30, 1991. An
individual appointed to a term of office as Beneficiary Om-
budsman after the commencement of such term may serve
under such appointment only for the remainder of such
term. An individual may, at the request of the Chairperson
of the Board, serve as Beneficiary Ombudsman after the
expiration of his or her term for not more than one year
until his or her successor has taken office. An individual
may be appointed as Beneficiary Ombudsman for addi-
tional terms.
‘‘(3) The duties of the Beneficiary Ombudsman are
as follows:
‘‘(A) to represent the interests and concerns of
beneficiaries under the old-age, survivors, and dis-
ability insurance program under title II and the sup-
plemental security income program under title XVI
within the Administration’s decisionmaking process;
‘‘(B) to review the Administration’s policies and
procedures for possible adverse effects on such
beneficiaries;
‘‘(C) to recommend changes in policies which
have caused problems for such beneficiaries;
‘‘(D) to help resolve the problems under such
programs of individual beneficiaries; and
‘‘(E) to represent the views of beneficiaries in
the design of forms and the issuance of instructions.
‘‘(4) The Board shall assure that the Office of the
Beneficiary Ombudsman has staff sufficient to enable the
Beneficiary Ombudsman to efficiently carry out his or her
duties. Such staff shall be located in the regional offices,
program centers, and central office of the Administration.
‘‘(5) The annual report of the Board under section
704 shall include a description of the activities of the Ben-
eficiary Ombudsman.
‘‘General Counsel
‘‘(e) There shall be in the Administration a General
Counsel, who shall be appointed by and serve at the pleas-
ure of the Board. The General Counsel shall be the prin-
cipal legal officer in the Administration.
‘‘Inspector General
‘‘(f) There shall be in the Administration an Office
of the Inspector General. Such Office shall be headed by
an Inspector General appointed in accordance with the In-
spector General Act of 1978.’’.
(b) INTERIM AUTHORITY OF THE COMMISSIONER.—
The President shall nominate for appointment the initial
members of the Social Security Board not later than 180
days after the date of the enactment of this Act. In the
event that, as of the effective date of the amendment made
by this Act to section 702 of the Social Security Act, all
members of the Social Security Board have not been ap-
pointed, until all members of the Board have been ap-
pointed, the officer serving on the date of the enactment
of this Act as Commissioner of Social Security in the De-
partment of Health and Human Services (or Acting Com-
missioner, if applicable), or such officer’s successor, shall,
while continuing to serve as Commissioner of Social Secu-
rity (or Acting Commissioner) in such Department, serve
as head of the Social Security Administration established
under section 701 of the Social Security Act (as amended
by this Act) and shall assume the powers and duties of
such Board and of the Commissioner of Social Security
under such Act (as amended by this Act).
SEC. 103. PERSONNEL; BUDGETARY MATTERS; FACILITIES
AND PROCUREMENT; SEAL OF OFFICE.
Section 703 of the Social Security Act is amended
to read as follows:
‘‘ADMINISTRATIVE DUTIES OF THE SOCIAL SECURITY
BOARD
‘‘Personnel
‘‘SEC. 703. (a)(1) The Social Security Board shall
appoint such additional officers and employees as it con-
siders necessary to carry out its functions. Except as oth-
erwise provided 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 Board may appoint, without regard to the
provisions of title 5, United States Code, governing ap-
pointments in the competitive service, such technical or
professional employees as the Board considers appro-
priate, and such employees may be paid without regard
to the provisions of chapter 51 and subchapter III of chap-
ter 53 of such title relating to classification and General
Schedule pay rates.
‘‘(3) The Board may procure the services of experts
and consultants in accordance with the provisions of sec-
tion 3109 of title 5, United States Code.
‘‘(4) The Director of the Office of Personnel Manage-
ment shall delegate to the Board, pursuant to section
1104 of title 5, United States Code, and subject to appli-
cable limitations under such title relating to delegations
under such section, the functions relating to—
‘‘(A) recruitment and examination programs for
entry level employees, and
‘‘(B) classification and standards development
systems and pay ranges for those job categories
identified by the Board in assuming such delegation.
The Director of the Office of Personnel Management shall
provide any assistance requested by the Board in assum-
ing such delegation.
‘‘(5) 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 equal to 200 percent of the number of such posi-
tions in the Social Security Administration in the Depart-
ment of Health and Human Services as of immediately
before the date of the enactment of the Social Security
Reorganization Act of 1985, and the total number of such
positions authorized for the Administration pursuant to
such section 3133 shall not at any time be less than such
number.
‘‘(6) In addition to the positions of the Administra-
tion in the Executive Schedule specified in section 702,
the Administration is authorized six additional positions
at level IV of the Executive Schedule and six additional
positions at level V of the Executive Schedule.
‘‘Budgetary Matters
‘‘(b)(1) Appropriations requests for staffing and per-
sonnel of the Administration shall be based upon a com-
prehensive work force plan, which shall be established and
revised from time to time by the Board. The entire amount
of appropriations provided for the administrative costs of
the Administration shall be apportioned in the time period
provided in title 31, United States Code, for apportion-
ment and shall be apportioned for the entire period of
availability without restriction or deduction by the appor-
tioning officer or employee of the Office of Management
and Budget or any other entity within the executive
branch of the Federal Government, except as otherwise
provided in this subsection.
‘‘(2) The report submitted pursuant to section 704
shall include a section reflecting the use of budget author-
ity provided to the Administration by quarters.
‘‘(3)(A) Authority of the Administration for auto-
mated data processing procurement and facilities con-
struction shall be provided in the form of contract author-
ity covering the total costs of such acquisitions, to be
available until expended.
‘‘(B) Amounts necessary for the liquidation of con-
tract authority provided pursuant to this paragraph are
hereby made available from the Federal Old-Age and Sur-
vivors Insurance Trust Fund and the Federal Disability
Insurance Trust Fund to the extent that the Board, with
the concurrence of the Secretary of the Treasury, deter-
mines that such amounts are not necessary to meet the
current obligations for benefit payments from the Trust
Funds.
‘‘(C) Funds appropriated for the Administration to
be available on a contingency basis shall be apportioned
only upon the occurrence of the stipulated contingency, as
determined by the Board and reported to each House of
the Congress.
‘‘Mandatory Delegations from Administrator of General
Services
‘‘(c)(1) The Board shall have—
‘‘(A) all authorities permitted to be delegated
under the provisions of Federal law codified under
title 40 of the United States Code, relating to the
acquisition, operation, and maintenance of the facili-
ties needed for the administration of programs for
which the Board is given responsibility under this
Act,
‘‘(B) all authorities permitted to be delegated
under section 111 of the Federal Property and Ad-
ministrative Services Act of 1949 (40 U.S.C. 759),
relating to the lease, purchase, or maintenance of
automated data processing equipment, and
‘‘(C) the authority to contract for any auto-
mated data processing equipment or services which
the Board considers necessary for the efficient and
effective operation of such programs.
‘‘(2) The Administrator of the General Services Ad-
ministration shall provide any assistance requested by the
Board in assuming the delegations required under para-
graph (1).’’.
‘‘Seal of Office
‘‘(d) The Board shall cause a seal of office to be made
for the Administration of such design as the Board shall
approve. Judicial notice shall be taken of such seal.’’.
SEC. 104. TRANSFERS TO THE NEW SOCIAL SECURITY AD-
MINISTRATION.
(a) FUNCTIONS.—There are transferred to the Social
Security Administration all functions carried out by the
Secretary of Health and Human Services with respect to
the programs and activities the administration of which
is vested in the Social Security Administration by reason
of this Act and the amendments made thereby. The Social
Security Board shall allocate such functions in accordance
with sections 701, 702, and 703 of the Social Security
Act (as amended by this Act).
(b) PERSONNEL, ASSETS, ETC.—(1) There are trans-
ferred from the Department of Health and Human Serv-
ices to the Social Security Administration, for appropriate
allocation by the Social Security Board in the Social
Security Administration—
(A) the personnel employed in connection with
the functions transferred by this Act and the amend-
ments made thereby, and
(B) the assets, liabilities, contracts, property,
records, and unexpended balance of appropriations,
authorizations, allocations, and other funds em-
ployed, held, or used in connection with such func-
tions, arising from such functions, or available, or to
be made available, in connection with such functions.
(2) Unexpended funds transferred pursuant to this
subsection shall be used only for the purposes for which
the funds were originally authorized and appropriated.
(c) ABOLISHMENT OF OFFICE OF COMMISSIONER IN
THE DEPARTMENT
OF HEALTH
AND HUMAN SERV-
ICES.—Effective upon the appointment of all initial mem-
bers of the Social Security Board pursuant to section 702
of the Social Security Act (as amended by this Act), the
position of Commissioner of Social Security in the Depart-
ment of Health and Human Services is abolished.
TITLE II—MISCELLANEOUS PROVISIONS AND
CONFORMING AMENDMENTS
SEC. 201. CONTRIBUTOR AND BENEFICIARY BILL OF
RIGHTS.
Title VII of the Social Security Act is further amend-
ed by adding at the end thereof the following new section:
‘‘CONTRIBUTOR AND BENEFICIARY BILL OF RIGHTS
‘‘Principles for Implementation of Act
‘‘SEC. 711. (a) The provisions of this Act should be
implemented consistent with the following principles:
‘‘(1) All persons should be treated fairly and
equitably by the Social Security Board and the Sec-
retary with proper regard and protection for their
rights under this Act, their constitutional rights, and
their privacy.
‘‘(2) The Social Security Board and the Sec-
retary should not discriminate against persons on
account of their age, sex, race, creed, color, handi-
cap, national origin, or economic condition.
‘‘(3) The Board and the Secretary should each
maintain prompt, professional, and effective service
which is accessible and responsive to the commu-
nities and persons which they serve.
‘‘Enforcement of Principles
‘‘(b) In carrying out their responsibilities under this
Act, the Social Security Board and the Secretary, pursu-
ant to authority otherwise available, shall take any action,
including the issuance of rules, regulations, or directives,
which is consistent with the provisions of this Act and
which the Social Security Board or the Secretary (as the
case may be) determines is necessary to ensure that the
administration of this Act is based on and embodies the
principles set forth in subsection (a) and that such prin-
ciples are publicly displayed in each office of the Social
Security Administration.’’.
SEC. 202. AMENDMENTS TO TITLES II AND XVI OF THE SO-
CIAL SECURITY ACT.
(a) Title II (other than section 201, section 231(c),
section 226, and section 226A) and title XVI of the Social
Security Act are each amended—
(1) by striking out, wherever it appears therein,
‘‘Secretary of Health and Human Services’’ and in-
serting in lieu thereof ‘‘Social Security Board’’;
(2) by striking out, wherever it appears therein,
‘‘Department of Health and Human Services’’ and
inserting in lieu thereof ‘‘Social Security Administra-
tion’’;
(3) by striking out, wherever it appears therein,
‘‘Department’’ (but only if it is not immediately suc-
ceeded by the words ‘‘of Health and Human Serv-
ices’’, and only if it is used in reference to the De-
partment of Health and Human Services) and in-
serting in lieu thereof ‘‘Administration’’; and
(4) by striking out, wherever it appears therein,
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): ‘‘Secretary’’, ‘‘Sec-
retary’s’’, ‘‘his’’, ‘‘him’’, and ‘‘he’’, and inserting in
lieu thereof (in the case of the word ‘‘Secretary’’)
‘‘Social Security Board’’, (in the case of the word
‘‘Secretary’s’’) ‘‘Board’s’’, (in the case of the word
‘‘his’’) ‘‘the Board’s’’, (in the case of the word
‘‘him’’) ‘‘the Board’’, and (in the case of the word
‘‘he’’) ‘‘the Board’’.
(b)(1) Section 201(a)(3) of such Act is amended by
striking out ‘‘Secretary of Health and Human Services’’
and inserting in lieu thereof ‘‘Social Security Board’’.
(2) Section 201(c) of such Act is amended—
(A) in the first sentence, by striking out ‘‘shall
be composed of’’ and all that follows down through
‘‘ex officio’’ and inserting in lieu thereof the follow-
ing: ‘‘shall be composed of the members of the Social
Security Board, the Secretary of the Treasury, and
the Secretary of Health and Human Services, all ex
officio’’; and
(B) by inserting after the first sentence the fol-
lowing new sentence: ‘‘The Chairperson of the Social
Security Board shall be the Chairperson of the
Board of Trustees.’’.
(3) Section 201(g)(1)(A) of such Act is amended—
(A) in clause (i), by striking out ‘‘by him and
the Secretary of Health and Human Services’’ and
inserting in lieu thereof ‘‘by him, the Social Security
Board, and the Secretary of Health and Human
Services’’, and by striking out ‘‘by the Department
of Health and Human Services and the Treasury
Department’’ and inserting in lieu thereof ‘‘by the
Social Security Administration, the Department of
Health and Human Services, and the Department of
the Treasury’’;
(B) in clause (ii), by striking out ‘‘method pre-
scribed by the Board of Trustees under paragraph
(4)’’ and inserting in lieu thereof ‘‘applicable method
prescribed under paragraph (4)’’, by striking out
‘‘the Secretary of Health and Human Services’’ and
inserting in lieu thereof ‘‘the Social Security Board
and the Secretary of Health and Human Services’’,
and by striking out ‘‘the Department of Health and
Human Services’’ and inserting in lieu thereof ‘‘the
Social Security Administration and the Department
of Health and Human Services’’; and
(C) by striking out the last sentence and insert-
ing in lieu thereof 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 and
title XVI for which the Social Security Board is re-
sponsible, the costs of title XVIII for which the Sec-
retary of Health and Human Services is responsible,
and the costs of 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 1954 other than
those referred to in clause (i) of the first sentence
of this subparagraph.’’.
(4) Section 201(g)(1) of such Act is further amended
by striking out subparagraph (B) and inserting in lieu
thereof the following new subparagraphs:
‘‘(B) After the close of each fiscal year—
‘‘(i) the Social Security Board shall determine
(I) the portion of the costs, incurred during such fis-
cal year, of administration of this title and title XVI
and of carrying out the functions of the Social Secu-
rity Administration, specified in section 232, which
relate to the administration of provisions of the In-
ternal Revenue Code of 1954 (other than those re-
ferred to in clause (i) of the first sentence of sub-
paragraph (A)), which should have been borne by
the general fund in the Treasury, (II) the portion of
such costs which should have been borne by the Fed-
eral Old-Age and Survivors Insurance Trust Fund,
and (III) the portion of such costs which should
have been borne by the Federal Disability Insurance
Trust Fund, and
‘‘(ii) the Secretary of Health and Human Serv-
ices shall determine (I) the portion of the costs, in-
curred during such fiscal year, of administration of
title XVIII which should have been borne by the
general fund in the Treasury, (II) the portion of
such costs which should have been borne by the Fed-
eral Hospital Insurance Trust Fund, and (III) the
portion of such costs which should have been borne
by the Federal Supplementary Medical Insurance
Trust Fund,
except that the determination of the amounts to be borne
by the general fund in the Treasury with respect to ex-
penditures incurred in carrying out such functions speci-
fied in section 232 shall be made pursuant to the applica-
ble method prescribed under paragraph (4) of this sub-
section.
‘‘(C) After the determinations under subparagraph
(B) have been made for any fiscal year, the Social Security
Board and the Secretary of Health and Human Services
shall each certify to the Managing Trustee the amounts
which should be transferred from each of the Trust Funds
to the general fund in the Treasury and from the general
fund in the Treasury to each of the Trust Funds, in order
to ensure that each of the Trust Funds and the general
fund in the Treasury have borne their proper share of the
costs, incurred during such fiscal year, for (i) the part of
the administration of this title and title XVI for which
the Social Security Board is responsible, (ii) the part of
the administration of this title and title XVIII for which
the Secretary of Health and Human Services is respon-
sible, and (iii) carrying out the functions of the Social Se-
curity Administration, specified in section 232, which re-
late to the administration of provisions of the Internal
Revenue Code of 1954 (other than those referred to in
clause (i) of the first sentence of subparagraph (A)). The
Managing Trustee shall transfer any such amounts in ac-
cordance with any certification so made.’’.
(5) Section 201(g)(2) of such Act is amended, in the
second sentence, by striking out ‘‘established and main-
tained by the Secretary of Health and Human Services’’
and inserting in lieu thereof ‘‘maintained by the Social Se-
curity Board’’, and by striking out ‘‘Secretary shall fur-
nish’’ and inserting in lieu thereof ‘‘Social Security
Board shall furnish’’.
(6) Section 201(g)(4) of such Act is amended to read
as follows:
‘‘(4) The Social Security Board shall utilize the meth-
od prescribed pursuant to this paragraph, as of imme-
diately before the date of the enactment of the Social Se-
curity Reorganization Act of 1985, for determining the
costs which should be borne by the general fund in the
Treasury of carrying out the functions of the Board, speci-
fied in section 232, which relate to the administration of
provisions of the Internal Revenue Code of 1954 (other
than those referred to in clause (i) of the first sentence
of paragraph (1)(A)). If at any time or times thereafter
the Board considers such action advisable, it may modify
the method of determining such costs.’’.
(7) Section 201(i)(1) of such Act is amended to read
as follows:
‘‘(i)(1) The Managing Trustee may accept on behalf
of the United States money gifts and bequests made un-
conditionally to the Federal Old-Age and Survivors Insur-
ance 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 there-
of, 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 are each amended by striking out ‘‘Secretary’’ each
place it appears and inserting in lieu thereof ‘‘Social Secu-
rity Board’’.
(9) Section 201(l)(3)(B)(iii)(II) of such Act is
amended by striking out ‘‘Secretary’’ and inserting in lieu
thereof ‘‘Social Security Board’’.
(10) Section 201(m)(3) of such Act is amended by
striking out ‘‘Secretary of Health and Human Services’’
and inserting in lieu thereof ‘‘Social Security Board’’.
(c) Section 231(c) of such Act is amended by striking
out ‘‘Secretary determines’’ and inserting in lieu thereof
‘‘Social Security Board and the Secretary jointly deter-
mine’’.
SEC. 203. OTHER AMENDMENTS.
(a) Section 411 of the Social Security Act is amend-
ed—
(1) in subsection (a), by striking out ‘‘Sec-
retary’’ and inserting in lieu thereof ‘‘Social Security
Board, at the request of the Secretary,’’; and
(2) in subsection (b), by striking out ‘‘Sec-
retary’’ each place it appears and inserting in lieu
thereof ‘‘Social Security Board’’.
(b)(1) Section 704 of such Act is amended to read
as follows:
‘‘REPORTS
‘‘SEC. 704. The Secretary and the Social Security
Board shall make full reports to Congress, within 120
days after the beginning of each regular session, of the
administration of the functions with which they are
charged under this Act. In addition to the number of cop-
ies of such reports authorized by other law to be printed,
there is hereby authorized to be printed not more than
5,000 copies of each such report for use by the Secretary
and Social Security Board for distribution to Members of
Congress and to State and other public or private agencies
or organizations participating in or concerned with the
programs provided for in this Act.’’.
(2) Section 709(b)(2) of such Act is amended by
striking out ‘‘(as estimated by the Secretary)’’ and insert-
ing in lieu thereof ‘‘, as estimated by the Social Security
Board or the Secretary (whichever administers the pro-
gram involved),’’.
(3) Title VII of such Act is further amended by add-
ing at the end thereof the following new section:
‘‘DUTIES OF SECRETARY
‘‘SEC. 712. The Secretary shall perform the duties
imposed upon him by this Act and shall also have the duty
of studying and making recommendations as to the most
effective methods of providing economic security and as
to legislation and matters of administrative policy concern-
ing the programs administered by the Secretary and relat-
ed subjects; except that nothing in this section shall be
construed to require the Secretary to make studies or rec-
ommendations with respect to programs administered by
the Social Security Administration.’’.
(c)(1) Section 1101(a) of such Act is amended by
adding at the end thereof the following new paragraph:
‘‘(10) The term ‘Administration’ means the So-
cial Security Administration.’’.
(2) Section 1106(a) of such Act is amended—
(A) by inserting ‘‘(1)’’ after ‘‘(a)’’;
(B) by striking out ‘‘Department of Health and
Human Services’’ and inserting in lieu thereof ‘‘ap-
plicable agency’’;
(C) by striking out ‘‘Secretary’’ and inserting in
lieu thereof ‘‘head of the applicable agency’’; and
(D) by adding at the end thereof 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 Adminis-
tration, or
‘‘(B) the Department of Health and Human
Services, with respect to matter transmitted to or
obtained by such Department or matter disclosed
by such Department.’’.
(3) Section 1106(b) of such Act is amended—
(A) by striking out ‘‘Secretary’’ and inserting in
lieu thereof ‘‘head of the applicable agency’’; and
(B) by striking out ‘‘Department of Health and
Human Services’’ and inserting in lieu thereof ‘‘ap-
plicable agency’’.
(4) Section 1106(c) of such Act is amended—
(A) by striking out ‘‘the Secretary’’ the first
place it appears and inserting in lieu thereof ‘‘the
Social Security Board or the Secretary’’; and
(B) by striking out ‘‘the Secretary’’ each subse-
quent place it appears and inserting in lieu thereof
‘‘such Board or Secretary’’.
(5) Section 1107(b) of such Act is amended by strik-
ing out ‘‘the Secretary of Health and Human Services’’
and inserting in lieu thereof ‘‘the Social Security Board
or the Secretary’’.
(6) Section 1110 of such Act is amended—
(A) by striking out ‘‘Secretary’’ each place it
appears and inserting in lieu thereof ‘‘Social Secu-
rity Board’’; and
(B) by striking out ‘‘he’’, ‘‘his’’, ‘‘him’’, and
‘‘himself’’ each place they appear (except in sub-
section (b)(2)(A)) and inserting in lieu thereof ‘‘the
Board’’, ‘‘the Board’s’’, ‘‘the Board’’, and ‘‘itself’’,
respectively.
(7) Section 1127 of such Act is amended by striking
out ‘‘Secretary’’ and inserting in lieu thereof ‘‘Social Secu-
rity Board’’.
(8) Section 1128(e) of such Act is amended by insert-
ing after ‘‘section 205(g)’’ the following: ‘‘, except that,
in so applying such sections, any reference therein to the
Social Security Board shall be considered a reference to
the Secretary’’.
(9) Section 1131 of such Act is amended—
(A) by striking out ‘‘Secretary’’ each place it
appears and inserting in lieu thereof ‘‘Social Secu-
rity Board’’;
(B) in subsection (a)(1)(A), by adding ‘‘or’’ at
the end thereof;
(C) in subsection (a)(1)(B), by striking out
‘‘or’’ at the end thereof;
(D) by striking out subsection (a)(1)(C);
(E) by redesignating subsection (a)(2) as sub-
section (a)(3);
(F) by inserting after subsection (a)(1) the fol-
lowing 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) by striking out ‘‘he’’ in the matter in sub-
section (a) following paragraph (3) (as so redesig-
nated) and inserting in lieu thereof ‘‘the Social Se-
curity Board’’.
(10) Section 1155 of such Act is amended by striking
out ‘‘(to the same extent as is provided in section 205(b))’’
and inserting in lieu thereof ‘‘(to the same extent as bene-
ficiaries under title II are entitled to a hearing by the So-
cial Security Board under section 205(b))’’.
(d)(1) Subsections (a) and (f) of section 1817 of such
Act are amended by striking out ‘‘Secretary of Health and
Human Services’’ each place it appears and inserting in
lieu thereof ‘‘Social Security Board’’.
(2) Section 1840(a) of such Act is amended—
(A) in paragraph (1), by striking out ‘‘Sec-
retary’’ and inserting in lieu thereof ‘‘Social Security
Board’’, and by adding at the end thereof the follow-
ing new sentence: ‘‘Such regulations shall be pre-
scribed only after consultation with the Secretary.’’;
and
(B) in paragraph (2), by striking out ‘‘Sec-
retary of Health and Human Services’’ and inserting
in lieu thereof ‘‘Social Security Board’’.
(3) Section 1872 of such Act 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 Social Security Board shall be considered
a reference to the Secretary’’.
(4) Sections 1862(d)(3), 1869(b)(1), and 1869(c) of
such Act and the last sentence of section 1876(c)(5)(B)
of such Act are amended by inserting after ‘‘section
205(g)’’ the following: ‘‘, except that, in so applying such
sections, any reference therein to the Social Security
Board shall be considered a reference to the Secretary’’.
(e) Section 1910(c)(2) of such Act is amended, in the
first sentence, by inserting after ‘‘section 205(g)’’ the fol-
lowing: ‘‘, except that, in so applying such sections, any
reference therein to the Social Security Board shall be
considered a reference to the Secretary’’.
(f) Title 5, United States Code, is amended—
(1) by adding at the end of section 5313 the
following new items:
‘‘Members, Social Security Board (3).
‘‘Commissioner of Social Security.’’;
(2) by adding at the end of section 5314 the
following new item:
‘‘Deputy Commissioner of Social Security.’’;
(3) by adding at the end of section 5315 the
following new items:
‘‘General Counsel, Social Security Administra-
tion.
‘‘Additional officers, Social Security Adminis-
tration (6).’’;
(4) by adding at the end of section 5316 the
following new items:
‘‘Inspector General, Social Security Administra-
tion.
‘‘Additional officers, Social Security Adminis-
tration (6).’’; and
(5) by striking out ‘‘Secretary of Health and
Human Services’’ each place it appears in section
8141 and inserting in lieu thereof ‘‘Social Security
Board’’.
(g) The Food Stamp Act of 1977 is amended—
(1) in section 6 (7 U.S.C. 2015), by striking
out ‘‘Secretary of Health and Human Services’’ and
inserting in lieu thereof ‘‘Social Security Board’’;
and
(2) in section 17(d) (7 U.S.C. 2026(d)), by in-
serting after ‘‘Services’’ the following: ‘‘and the So-
cial Security Board’’.
(h) Section 707 of title 14, United States Code, is
amended by striking out ‘‘Secretary of Health and Human
Services’’ each place it appears and inserting in lieu there-
of ‘‘Social Security Board’’.
(i)(1) Subsections (c)(1), (c)(2)(E), (g)(1), (g)(3)(A),
and (g)(3)(B) of section 1402 of the Internal Revenue
Code of 1954 are amended by striking out ‘‘Secretary of
Health and Human Services’’ each place it appears and
inserting in lieu thereof ‘‘Social Security Board’’.
(2) Section 3121(b)(10)(B) of such Code is amended
by striking out each place it appears ‘‘Secretary of Health
and Human Services’’ and inserting in lieu thereof ‘‘Social
Security Board’’.
(3) Subsections (d) and (f) of section 6057 of such
Code are amended by striking out ‘‘Secretary of Health
and Human Services’’ each place it appears and inserting
in lieu thereof ‘‘Social Security Board’’.
(4) Section 6103(l)(5) of such Code is amended—
(A) by striking out ‘‘Department of Health and
Human Services’’ and inserting in lieu thereof ‘‘So-
cial Security Administration’’; and
(B) by striking out ‘‘Secretary of Health and
Human Services’’ and inserting in lieu thereof ‘‘So-
cial Security Board’’.
(5) Section 6511(d)(5) of such Code is amended by
striking out ‘‘Secretary of Health and Human Services’’
and inserting in lieu thereof ‘‘Social Security Board’’.
(j) Section 3005 of title 38, United States Code, is
amended by striking out ‘‘Secretary of Health and Human
Services’’ and ‘‘Secretary’’ each place they appear and in-
serting in lieu thereof ‘‘Social Security Board’’.
(k) The Inspector General Act of 1978 (5 U.S.C.
App.) is amended—
(1) in section 2(1), by striking out ‘‘and the
Veterans’ Administration’’ and inserting in lieu
thereof ‘‘the Veterans’ Administration, and the So-
cial Security Administration’’;
(2) in section 9(a)(1), by striking out ‘‘and’’ at
the end of subparagraph (M), and by adding at the
end thereof the following new subparagraph:
‘‘(O) of the Social Security Administration
(to the extent provided in the Social Security
Reorganization Act of 1985), the functions of
the Inspector General of the Department of
Health and Human Services relating to the ad-
ministration of the old-age, survivors, and dis-
ability insurance program under title II of the
Social Security Act and of the supplemental se-
curity income program under title XVI of such
Act; and’’;
(3) in section 11(1), by striking out ‘‘or’’ after
‘‘Transportation’’ and inserting in lieu thereof a
comma, and by inserting after ‘‘Affairs,’’ the follow-
ing: ‘‘or the Social Security Board,’’; and
(4) in section 11(2), by striking out ‘‘or’’ after
‘‘Transportation’’, and by inserting after ‘‘Veterans’
Administration,’’ the following: ‘‘or the Social Secu-
rity Administration,’’.
SEC. 204. 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 Act or a provision
of law amended by this Act), regulation, rule, record, or
document to the Department of Health and Human Serv-
ices with respect such Department’s functions under the
old-age, survivors, and disability insurance program under
title II of the Social Security Act or the supplemental se-
curity income program under title XVI of such Act, such
reference shall be considered a reference to the Social Se-
curity Administration.
(b) REFERENCES TO THE SECRETARY OF HEALTH
AND HUMAN SERVICES.—Whenever any reference is made
in any provision of law (other than this Act or a provision
of law amended by this Act), regulation, rule, record, or
document to the Secretary of Health and Human Services
with respect to such Secretary’s functions under such pro-
grams, such reference shall be considered a reference to
the Social Security Board.
(c) REFERENCES TO OTHER OFFICERS AND EM-
PLOYEES.—Whenever any reference is made in any provi-
sion of law (other than this Act or a provision of law
amended by this Act), regulation, rule, record, or docu-
ment to any other officer or employee of the Department
of Health and Human Services with respect to such officer
or employee’s functions under such programs, such ref-
erence shall be considered a reference to the appropriate
officer or employee of the Social Security Administration.
TITLE III—EFFECTIVE DATES AND
TRANSITIONAL RULES
SEC. 301. EFFECTIVE DATES.
(a) AMENDMENTS IN TITLE I.—(1) Sections 101,
102(a), 103, and 104 of this Act shall take effect 180 days
after the date of the enactment of this Act.
(2) Section 102(b) of this Act shall take effect on
the date of the enactment of this Act.
(b) AMENDMENTS IN TITLE II.—Title II of this Act
shall take effect 180 days after the date of the enactment
of this Act, except that subsections (f)(1), (f)(2), (f)(3),
(f)(4), and (k) of section 206 shall take effect on the date
of the enactment of this Act.
SEC. 302. TRANSITIONAL RULES.
(a) INTERIM AUTHORITY FOR APPOINTMENT AND
COMPENSATION.—At any time after the date of the enact-
ment of this Act—
(1) any of the officers provided for in section
702 of the Social Security Act (as amended by title
I of this Act) may be nominated and appointed, as
provided in such section, and
(2) the Social Security Board, upon nomination
and appointment of all of the members thereof, may
prescribe regulations providing for the orderly trans-
fer of proceedings before the Secretary of Health
and Human Services to the Social Security Board.
Funds available to any official or component of the De-
partment of Health and Human Services, functions of
which are transferred to the Social Security Board or the
Social Security Administration by this Act, 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 appointed pursuant to this section until such
time as funds for that purpose are otherwise available.
(b) CONTINUATION OF ORDERS, DETERMINATIONS,
RULES, REGULATIONS, ETC.—All orders, determinations,
rules, regulations, permits, contracts, certificates, licenses,
and privileges—
(1) which have been issued, made, promulgated,
granted, or allowed to become effective, in the exer-
cise of functions (A) which were exercised by the
Secretary of Health and Human Services (or his del-
egate), and (B) which relate to functions which, by
reason of this Act, the amendments made thereby,
and regulations prescribed thereunder, are vested in
the Social Security Board, and
(2) which are in effect immediately before the
effective date specified in section 301(a)(1),
shall (to the extent that they relate to functions described
in paragraph (1)(B)) continue in effect according to their
terms until modified, terminated, suspended, set aside, or
repealed by such Board.
(c) CONTINUATION OF PROCEEDINGS.—The provi-
sions of this Act (including the amendments made there-
by) shall not affect any proceeding pending at the time
this Act takes effect before the Secretary of Health and
Human Services with respect to functions vested (by rea-
son of this Act, the amendments made thereby, and regu-
lations prescribed thereunder) in the Social Security
Board, except that such proceedings, to the extent that
they relate to such functions, shall continue before such
Board. Orders shall be issued under any such proceeding,
appeals taken therefrom, and payments shall be made pur-
suant to such orders, in like manner as if this Act had
not been enacted, and orders issued in any such proceed-
ing shall continue in effect until modified, terminated, su-
perseded, or repealed by such Board, by a court of com-
petent jurisdiction, or by operation of law.
(d) CONTINUATION OF SUITS.—Except as provided
in this subsection—
(1) the provisions of this Act shall not affect
suits commenced prior to the effective date specified
in section 301(a)(1); and
(2) in all such suits proceedings shall be had,
appeals taken, and judgments rendered, in the same
manner and effect as if this Act had not been en-
acted.
No cause of action, and no suit, action, or other proceed-
ing commenced by or against any officer in his official ca-
pacity as an officer of the Department of Health and
Human Services, shall abate by reason of the enactment
of this Act. Causes of action, suits, actions, or other pro-
ceedings may be asserted by or against the United States
and the Social Security Administration, or such official of
such Administration as may be appropriate, and, in any
litigation pending when this section takes effect, the court
may at any time, on its own motion 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 Act shall
not have the effect of releasing or extinguishing any crimi-
nal prosecution, penalty, forfeiture, or liability incurred as
a result of any function which (by reason of this Act, the
amendments made thereby, and regulations prescribed
thereunder) is vested in the Social Security Board.
(f) JUDICIAL REVIEW.—Orders and actions of the
Social Security Board in the exercise of functions vested
in such Board under this Act (and the amendments made
thereby) shall be subject to judicial review to the same
extent and in the same manner as if such orders and ac-
tions had been taken by the Secretary of Health and
Human Services in the exercise of such functions imme-
diately preceding the effective date of this Act. Any statu-
tory requirements relating to notice, hearings, action upon
the record, or administrative review that apply to any
function so vested in such Board shall continue to apply
to the exercise of such function by such Board.
(g) EXERCISE OF FUNCTIONS.—In the exercise of the
functions vested in the Social Security Board under this
Act, the amendments made thereby, and regulations pre-
scribed thereunder, such Board shall have the same au-
thority as that vested in the Secretary of Health and
Human Services with respect to the exercise of such func-
tions immediately preceding the vesting of such functions
in such Board, and actions of such Board shall have the
same force and effect as when exercised by such Secretary.
(h) OPERATION OF TRANSITIONAL RULES IN THE
EVENT
OF
INTERIM
AUTHORITY
IN
THE
COMMIS-
SIONER.—For purposes of this section, in any case in
which the powers and duties to be transferred to the Social
Security Board are transferred to the Commissioner of So-
cial Security (or acting Commissioner) in the Department
of Health and Human Services for an interim period pur-
suant to section 102(b) of this Act, the preceding provi-
sions of this section shall apply with respect to the trans-
fer of such powers and duties to and from such Commis-
sioner (or acting Commissioner) pursuant to such section
in the same manner and to the same extent as they would
have applied to a direct transfer from the Secretary of
Health and Human Services to the Social Security Board
if all initial appointments to such Board had been made.
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