Union Calendar No. 283
103D CONGRESS
2D SESSION
H. R. 4277
[Report No. 103–506]
A BILL
To establish the Social Security Administration as
an independent agency and to make other im-
provements in the old-age, survivors, and disabil-
ity insurance program.
MAY 12, 1994
Reported with an amendment, committed to the Commit-
tee of the Whole House on the State of the Union, and
ordered to be printed
IB
Union Calendar No. 283
103D CONGRESS
2D SESSION
H. R. 4277
[Report No. 103–506]
To establish the Social Security Administration as an independent agency
and to make other improvements in the old-age, survivors, and disability
insurance program.
IN THE HOUSE OF REPRESENTATIVES
APRIL 21, 1994
Mr. JACOBS (for himself and Mr. FORD of Tennessee) introduced the
following bill; which was referred to the Committee on Ways and Means
MAY 12, 1994
Additional sponsors: Mr. ROSTENKOWSKI, Mr. ARCHER, Mr. PICKLE, Mr.
STARK, Mrs. KENNELLY, Mr. COYNE, Mr. KLECZKA, Mr. PAYNE of Vir-
ginia, Mr. JEFFERSON, Mr. BREWSTER, Mr. REYNOLDS, Mr. THOMAS of
California, Mrs. JOHNSON of Connecticut, Mr. BUNNING, Mr. GRANDY,
Mr. HOUGHTON, Mr. HERGER, Mr. MCCRERY, Mr. SANTORUM, Mr.
CAMP, Mrs. VUCANOVICH, and Mr. BACHUS of Alabama
MAY 12, 1994
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on April 21, 1994]
A BILL
To establish the Social Security Administration as an inde-
pendent agency and to make other improvements in the
old-age, survivors, and disability insurance program.
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.
(a) SHORT TITLE.—This Act may be cited as the ‘‘So-
cial Security Administrative Reform Act of 1994’’.
(b) TABLE OF CONTENTS.—
Sec. 1. Short title and table of contents.
Sec. 2. Declaration of purposes.
TITLE I—ESTABLISHMENT OF THE SOCIAL SECURITY
ADMINISTRATION AS AN INDEPENDENT AGENCY
Sec. 101. Establishment of the Social Security Administration as a separate,
independent agency; responsibilities of the agency.
Sec. 102. Social Security Board, executive director, deputy director, beneficiary
ombudsman; other officers.
Sec. 103. Personnel; budgetary matters; seal of office.
Sec. 104. Transfers to the new Social Security Administration.
Sec. 105. Transitional rules.
Sec. 106. Conforming amendments to Titles II and XVI of the Social Security
Act.
Sec. 107. Other conforming amendments.
Sec. 108. Rules of construction.
Sec. 109. Effective dates.
TITLE II—IMPROVEMENTS TO THE OLD-AGE, SURVIVORS, AND
DISABILITY INSURANCE PROGRAM
Sec. 201. Restrictions on payment of benefits based on disability to substance
abusers.
Sec. 202. Issuance of physical documents in the form of bonds, notes, or certifi-
cates to the social security trust funds.
Sec. 203. Explicit requirements for maintenance of telephone access to local offices
of the Social Security Administration.
Sec. 204. Expansion of State option to exclude service of election officials or elec-
tion workers from coverage.
Sec. 205. Use of social security numbers by States and local governments and
Federal district courts for jury selection purposes.
Sec. 206. Authorization for all States to extend coverage to State and local police-
men and firemen under existing coverage agreements.
Sec. 207. Limited exemption for Canadian ministers from certain self-employ-
ment tax liability.
Sec. 208. Exclusion of totalization benefits from the application of the windfall
elimination provision.
Sec. 209. Exclusion of military reservists from application of the government pen-
sion offset and windfall elimination provisions.
Sec. 210. Repeal of the facility-of-payment provision.
Sec. 211. Maximum family benefits in guarantee cases.
Sec. 212. Authorization for disclosure by the Secretary of Health and Human
Services of information for purposes of public or private epide-
miological and similar research.
Sec. 213. Misuse of symbols, emblems, or names in reference to social security
programs and agencies.
Sec. 214. Increased penalties for unauthorized disclosure of social security infor-
mation.
Sec. 215. Increase in authorized period for extension of time to file annual earn-
ings report.
Sec. 216. Extension of disability insurance program demonstration project au-
thority.
Sec. 217. Cross-matching of social security account number information and em-
ployer identification number information maintained by the De-
partment of Agriculture.
Sec. 218. Certain transfers to railroad retirement account made permanent.
Sec. 219. Authorization for use of social security account numbers by department
of labor in administration of Federal workers’ compensation
laws.
Sec. 220. Coverage under FICA of Federal employees transferred temporarily to
international organizations.
Sec. 221. Extension of the FICA tax exemption and certain tax rules to individ-
uals who enter the United States under a visa issued under sec-
tion 101 of the Immigration and Nationality Act.
Sec. 222. Study of rising costs of disability insurance benefits.
Sec. 223. Commission on childhood disability.
Sec. 224. Disregard deemed income and resources of ineligible spouse in determin-
ing continued eligibility under section 1619(b).
Sec. 225. Plans for achieving self-support not disapproved within 60 days to be
deemed approved.
Sec. 226. Temporary authority to approve a limited number of plans for achiev-
ing self-support that include housing goals.
Sec. 227. Regulations regarding completion of plans for achieving self-support.
Sec. 228. Treatment of certain grant, scholarship, or fellowship income as earned
income for SSI purposes.
Sec. 229. SSI eligibility for students temporarily abroad.
Sec. 230. Disregard of cost-of-living increases for continued eligibility for work
incentives.
Sec. 231. Expansion of the authority of the Social Security Administration to
prevent, detect, and terminate fraudulent claims for SSI bene-
fits.
Sec. 232. Disability review required for SSI recipients who are 18 years of age.
Sec. 233. Continuing disability reviews.
Sec. 234. Technical and clerical amendments.
SEC. 2. DECLARATION OF PURPOSES.
The purposes of this Act are as follows:
(1) To establish the Social Security Administra-
tion as an independent agency, separate from the De-
partment 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 an Executive Director of the Ad-
ministration and define the powers and duties of the
Executive Director.
(5) To provide for delegating major authorities
to the Board and the Executive Director.
(6) To make other improvements in the old-age,
survivors, and disability insurance program under
title II of the Social Security Act.
TITLE 
I—ESTABLISHMENT 
OF
THE SOCIAL SECURITY AD-
MINISTRATION AS AN INDE-
PENDENT AGENCY
SEC. 101. ESTABLISHMENT OF THE SOCIAL SECURITY AD-
MINISTRATION AS A SEPARATE, INDEPEND-
ENT AGENCY; RESPONSIBILITIES OF THE
AGENCY.
Section 701 of the Social Security Act (42 U.S.C. 901)
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 Government,
a Social Security Administration. 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. SOCIAL SECURITY BOARD, EXECUTIVE DIRECTOR,
DEPUTY DIRECTOR, BENEFICIARY OMBUDS-
MAN; OTHER OFFICERS.
(a) IN GENERAL.—Section 702 of the Social Security
Act (42 U.S.C. 902) is amended to read as follows:
‘‘SOCIAL SECURITY BOARD; EXECUTIVE DIRECTOR; OTHER
OFFICERS
‘‘Social Security Board
‘‘SEC. 702. (a)(1)(A) The Administration shall be gov-
erned by a Social Security Board. The Board shall be com-
posed 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, and shall be individuals who are, by
reason of their education, experience, and attainments, ex-
ceptionally qualified to perform the duties of members of
the Board.
‘‘(B)(i) Except as provided in clauses (ii) and (iii),
members of the Board shall be appointed for terms of six
years. A member of the Board may be removed only pursu-
ant to a finding by the President of neglect of duty or mal-
feasance in office. The President shall transmit any such
finding to the Speaker of the House of Representatives 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 of 2 years,
‘‘(II) one shall be appointed for a term of 4
years, and
‘‘(III) one shall be appointed for a term of 6
years,
as designated by the President at the time of appointment.
Such members shall be appointed after active consideration
of recommendations made by the chairman of the Commit-
tee on Ways and Means of the House of Representatives and
of recommendations made by the chairman of the Commit-
tee on Finance of the Senate.
‘‘(iii) The President may not nominate an individual
for appointment to a term of office as member of the Board
before the commencement of the President’s term of office
in which the member’s term of office commences. Any mem-
ber appointed to a term of office after the commencement
of such term may serve under such appointment only for
the remainder of such term. A member may, at the request
of the President, serve for not more than one year after the
expiration of his or her term until his or her successor has
taken office. A member of the Board may be appointed for
additional terms.
‘‘(C) Not more than two members of the Board shall
be of the same political party.
‘‘(D) A member of the Board may not, during his or
her term as member, engage in any other business, vocation,
profession, or employment. A member of the Board may
continue as a member of the Board for not longer than the
30-day period beginning on the date such member first fails
to meet the requirements of the preceding sentence.
‘‘(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 by
the President to serve as Chairperson of the Board for a
term of 4 years.
‘‘(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, survivors,
and disability insurance program under title II and
the supplemental security income program under title
XVI,
‘‘(B) establish the Administration and oversee its
efficient and effective operation,
‘‘(C) establish policy and devise long-term plans
to promote and maintain the effective implementation
of programs referred to in subparagraph (A),
‘‘(D) appoint an Executive Director of the Ad-
ministration, as described in subsection (b), to act as
the chief operating officer of the Administration re-
sponsible for administering the programs referred to
in subparagraph (A),
‘‘(E) constitute three of the members of the Board
of Trustees of the Federal Old-Age and Survivors In-
surance Trust Fund and the Federal Disability In-
surance Trust Fund, with the Chairperson of the So-
cial Security Board serving as Chairperson of such
Board of Trustees,
‘‘(F) prepare an annual budget for the Adminis-
tration, which shall be submitted by the President to
the Congress without revision, together with the Presi-
dent’s annual budget for the Administration,
‘‘(G) study and make recommendations to the
Congress and the President as to the most effective
methods of providing economic security through social
insurance, supplemental security income, and related
programs and as to legislation and matters of admin-
istrative policy concerning the programs referred to
in subparagraph (A),
‘‘(H) provide the Congress and the President
with the ongoing actuarial and other analysis under-
taken by the Administration with respect to the pro-
grams referred to in subparagraph (A) and any other
information relating to such programs, and
‘‘(I) conduct policy analysis and research relat-
ing to the programs referred to in subparagraph (A).
‘‘(4)(A) The Board may prescribe such rules and regu-
lations as the Board determines necessary or appropriate
to carry out the functions of the Administration. The regu-
lations prescribed by the Board shall be subject to the rule-
making procedures established under section 553 of title 5,
United States Code.
‘‘(B) The Board may establish, alter, consolidate, or
discontinue such organizational units or components within
the Administration as the Board considers necessary or ap-
propriate to carry out its functions, except that this sub-
paragraph shall not apply with respect to any unit, compo-
nent, 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.
‘‘Executive Director
‘‘(b)(1) There shall be in the Administration an Execu-
tive Director who shall be appointed by the Social Security
Board.
‘‘(2)(A) The Executive Director shall be appointed for
a term of four years. An individual appointed to a term
of office as Executive Director after the commencement of
such term of office 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 Executive
Director 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 Executive Director for
additional terms.
‘‘(B) An individual may be removed from the office
of Executive Director before completion of his or her term
only for cause found by the Board.
‘‘(3) The Executive Director shall be compensated at
the rate provided for level II of the Executive Schedule.
‘‘(4) The Executive Director 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 program
under title II and the supplemental security income
program under title XVI,
‘‘(B) maintain an efficient and effective oper-
ational structure for the Administration,
‘‘(C) implement the long-term plans of the Board
to promote and maintain the effective implementation
of such programs,
‘‘(D) report annually to the Board on program
costs under titles II and XVI, make annual budgetary
recommendations to the Board for the ongoing admin-
istrative costs of the Administration under this Act,
and defend the recommendations before the Board,
‘‘(E) advise the Board and the Congress on the
effect on the administration of such programs of pro-
posed legislative changes in such programs,
during the absence or disability of the Executive Director
and, unless the Board designates another officer of the Gov-
ernment as Acting Executive Director, in the event of a va-
cancy in the office of the Executive Director.
‘‘General Counsel
‘‘(d)(1) There shall be in the Administration a General
Counsel, who shall be appointed by and serve at the pleasure
of the Board. The General Counsel shall be the principal
legal officer in the Administration.
‘‘(2) The General Counsel shall be compensated at the
rate provided for level IV of the Executive Schedule.
‘‘Inspector General
‘‘(e)(1) 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 Inspec-
tor General Act of 1978.
‘‘(2) The Inspector General shall be compensated at the
rate provided for level IV of the Executive Schedule.
‘‘Beneficiary Ombudsman
‘‘(f)(1) There shall be in the Administration an Office
of the Beneficiary Ombudsman, to be headed by a Bene-
ficiary Ombudsman appointed by the Board.
‘‘(2)(A) The Beneficiary Ombudsman shall be ap-
pointed 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, 2000.
An individual appointed to a term of office as Beneficiary
Ombudsman 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 Chair-
person 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 individ-
ual may be appointed as Beneficiary Ombudsman for addi-
tional terms.
‘‘(B) An individual may be removed from the office
of Beneficiary Ombudsman before completion of his or her
term only for cause found by the Board.
‘‘(3) The Beneficiary Ombudsman shall be com-
pensated at the rate provided for level V of the Executive
Schedule.
‘‘(4) The duties of the Beneficiary Ombudsman are as
follows:
‘‘(A) To represent within the Administration’s
decisionmaking process the interests and concerns of
beneficiaries under the old-age, survivors, and disabil-
ity insurance program under title II and the supple-
mental security income program under title XVI.
‘‘(B) To review the Administration’s policies and
procedures for possible adverse effects on such bene-
ficiaries.
‘‘(C) To recommend within the Administration’s
decisionmaking process changes in policies which have
caused problems for such beneficiaries.
‘‘(D) To help resolve the problems under such
programs of individual beneficiaries in unusual or
difficult circumstances, as determined by the Admin-
istration.
‘‘(E) To represent within the Administration’s
decisionmaking process the views of beneficiaries in
the design of forms and the issuance of instructions.
‘‘(5) The Board shall assure that the Office of the Bene-
ficiary Ombudsman has staff sufficient to enable the Bene-
ficiary Ombudsman to efficiently carry out his or her du-
ties. Such staff shall be located in the regional offices, pro-
gram centers, and central office of the Administration.
‘‘(6) The annual report of the Board under section 704
shall include a description of the activities of the Bene-
ficiary Ombudsman.
‘‘Administrative Law Judge
‘‘(g)(1) There shall be in the Administration an Office
of the Chief Administrative Law Judge, who shall be ap-
pointed by the Board. The duty of the Chief Administrative
Law Judge shall be to administer the affairs of the adminis-
trative law judges serving in the Administration in a man-
ner so as to ensure that hearings and other business are
conducted by the administrative law judges in accordance
with applicable law and regulations.
‘‘(2) The Chief Administrative Law Judge shall report
directly to the Board.’’.
(b) CONFORMING AMENDMENTS RELATING TO COM-
POSITION
OF BOARD
OF TRUSTEES
OF OASDI TRUST
FUNDS.—Section 201(c) of such Act (42 U.S.C. 401(c)) is
amended—
(1) in the first sentence, by striking ‘‘shall be
composed of’’ and all that follows down through ‘‘ex
officio’’ and inserting the following: ‘‘shall be com-
posed of the members of the Social Security Board,
the Secretary of the Treasury, the Secretary of Health
and Human Services, all ex officio’’;
(2) 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.’’; and
(3) by striking ‘‘Commissioner of Social Secu-
rity’’ and inserting ‘‘Executive Director of the Social
Security Administration’’.
(c) INTERIM AUTHORITY OF THE COMMISSIONER.—
The President shall nominate for appointment the initial
members of the Social Security Board not later than April
1, 1995. In the event that, as of October 1, 1995, all mem-
bers of the Social Security Board have not entered upon
office, until all members of the Board have entered upon
office, the officer serving on October 1, 1995, as Commis-
sioner of Social Security in the Department of Health and
Human Services (or Acting Commissioner, if applicable),
or such officer’s successor, shall, while continuing to serve
as Commissioner of Social Security (or Acting Commis-
sioner) in such Department, serve as head of the Social Se-
curity Administration established under section 701 of the
Social Security Act (as amended by this Act) and shall as-
sume the powers and duties of such Board and of the Execu-
tive Director under such Act (as amended by this Act).
SEC. 103. PERSONNEL; BUDGETARY MATTERS; SEAL OF
OFFICE.
Section 703 of the Social Security Act (42 U.S.C. 903)
is amended to read as follows:
‘‘ADMINISTRATIVE DUTIES OF THE SOCIAL SECURITY
BOARD
‘‘Personnel
‘‘SEC. 703. (a)(1) The Social Security Board shall ap-
point such additional officers and employees as it considers
necessary to carry out its functions. Except as otherwise
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 procure the services of experts and
consultants in accordance with the provisions of section
3109 of title 5, United States Code.
‘‘(3) The Director of the Office of Personnel Manage-
ment shall authorize for the Administration a total number
of Senior Executive Service positions which is greater than
the number of such positions authorized in the Social Secu-
rity Administration in the Department of Health and
Human Services as of immediately before the date of the
enactment of the Social Security Administrative Reform
Act of 1994, to the extent that the greater number of such
authorized positions is specified in the comprehensive
workforce plan as established and revised by the Board
under subsection (b)(1). The total number of such positions
authorized for the Administration pursuant to such section
3133 shall not at any time be less than the number of such
authorized positions as of immediately before such date.
‘‘(4) In addition to the positions of the Administration
in the Executive Schedule specified in section 702, the Ad-
ministration 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) Appropriations requests for staffing and personnel
of the Administration shall be based upon a comprehensive
workforce plan, which shall be established and revised from
time to time by the Board.
‘‘Seal of Office
‘‘(c) 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
ADMINISTRATION.
(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 Se-
curity 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 Services
to the Social Security Administration, for appropriate allo-
cation by the Social Security Board in the Social Security
Administration—
sitions specifically required under section 5315 of title
5, United States Code, or any other provision of law,
and
(B) six positions in such Department placed in
level V of the Executive Schedule (or equivalent posi-
tions) other than positions specifically required under
section 5316 of such title or any other provision of
law.
(4) The transfer pursuant to this section of full-time
personnel (except special Government employees) and part-
time personnel holding permanent positions shall not cause
any such employees to be separated or reduced in grade or
compensation for 1 year after such transfer or October 1,
1995, whichever is later.
(c) ABOLISHMENT OF OFFICE OF COMMISSIONER IN
THE DEPARTMENT OF HEALTH AND HUMAN SERVICES.—
Effective upon the entry upon office of all initial members
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 Department of
Health and Human Services is abolished.
SEC. 105. TRANSITIONAL RULES.
(a) INTERIM AUTHORITY FOR APPOINTMENT AND COM-
PENSATION.—At any time on or 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 this Act)
may enter upon office, as provided in such section,
and
(2) the Social Security Board, upon entry upon
office of all of the members thereof, may prescribe reg-
ulations providing for the orderly transfer of proceed-
ings before the Secretary of Health and Human Serv-
ices to the Social Security Board.
Funds available to any official or component of the Depart-
ment of Health and Human Services, functions of which
are transferred to the Social Security Board or the Social
Security Administration by this Act, may be used, with the
approval of the Director of the Office of Management and
Budget, to pay the compensation and expenses of any officer
entering upon office 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, collective bargaining
agreements, recognitions of labor organizations, certificates,
licenses, and privileges—
(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 his delegate), 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 Secu-
rity Board, and
(2) which are in effect immediately before Octo-
ber 1, 1995,
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, in accordance with law, by such Board.
(c) CONTINUATION OF PROCEEDINGS.—The provisions
of this Act (including the amendments made thereby) shall
not affect any proceeding pending before the Secretary of
Health and Human Services immediately before October 1,
1995, with respect to functions vested (by reason of this Act,
the amendments made thereby, and regulations 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 pursuant to such orders, in like
manner as if this Act had not been enacted, and orders is-
sued in any such proceeding shall continue in effect until
modified, terminated, superseded, or repealed by such
Board, by a court of competent 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 October 1, 1995; and
(2) in all such suits proceedings shall be had, ap-
peals taken, and judgments rendered, in the same
manner and effect as if this Act had not been enacted.
No cause of action, and no suit, action, or other pro-
ceeding commenced by or against any officer in his
official capacity 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, ac-
tions, or other proceedings may be asserted by or
against the United States and the Social Security Ad-
ministration, or such official of such Administration
as may be appropriate, and, in any litigation pend-
ing immediately before October 1, 1995, the court
may at any time, on its own motion or that of a
party, enter an order which will give effect to the pro-
visions of this subsection (including, where appro-
priate, an order for substitution of parties).
(e) CONTINUATION OF PENALTIES.—This Act shall not
have the effect of releasing or extinguishing any criminal
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 So-
cial 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 had been made
and such actions had been taken by the Secretary of Health
and Human Services in the exercise of such functions im-
mediately before October 1, 1995. Any statutory require-
ments relating to notice, hearings, action upon the record,
or administrative review that apply to any function so vest-
ed 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 author-
ity as that vested in the Secretary of Health and Human
Services with respect to the exercise of such functions imme-
diately 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 COMMISSIONER.—
For purposes of this section, in any case in which the pow-
ers and duties to be transferred to the Social Security Board
are transferred to the Commissioner of Social Security (or
acting Commissioner) in the Department of Health and
Human Services for an interim period pursuant to section
102(c), the preceding provisions of this section shall apply
with respect to the transfer of such powers and duties to
and from such Commissioner (or acting Commissioner)
pursuant to section 102(c) 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 members of the Board had en-
tered upon office.
SEC. 106. CONFORMING AMENDMENTS TO TITLES II AND
XVI OF THE SOCIAL SECURITY ACT.
(a) IN GENERAL.—Title II of the Social Security Act
(other than section 201, section 218(d), section 226, section
226A, and section 231(c)) and title XVI of such Act are
each amended—
(1) by striking, wherever it appears therein,
‘‘Secretary of Health and Human Services’’ and in-
serting ‘‘Social Security Board’’;
(2) by striking, wherever it appears therein, ‘‘De-
partment of Health and Human Services’’ and insert-
ing ‘‘Social Security Administration’’;
(3) by striking, wherever it appears therein, ‘‘De-
partment’’ (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 insert-
ing ‘‘Administration’’;
(4) by striking, 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
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’’; and
(5) by striking, wherever it appears therein, ‘‘In-
ternal Revenue Code of 1954’’ and inserting ‘‘Internal
Revenue Code of 1986’’.
(b) AMENDMENTS TO SECTION 218.—Section 218(d) of
such Act (42 U.S.C. 418(d)) is amended by striking ‘‘Sec-
retary’’ each place it appears in paragraphs (3) and (7)
and inserting ‘‘Social Security Board’’.
(c) AMENDMENTS TO SECTION 222.—Section 222(d) of
such Act (42 U.S.C. 422(d)) is amended—
(1) in the last sentence of paragraph (1), by
striking ‘‘Commissioner of Social Security’’ and in-
serting ‘‘Executive Director of the Social Security Ad-
ministration’’; and
(2) in the first sentence of paragraph (2), by
striking ‘‘Commissioner of Social Security’’ and in-
serting ‘‘Executive Director of the Social Security Ad-
ministration’’.
(d) AMENDMENT TO SECTION 231.—Section 231(c) of
such Act (42 U.S.C. 431(c)) is amended by striking ‘‘Sec-
retary determines’’ and inserting ‘‘Social Security Board
and the Secretary jointly determine’’.
(e) AMENDMENT TO SECTION 1615.—Section 1615(d)
of such Act (422 U.S.C. 1832d(d)) is amended by striking
‘‘Commissioner of Social Security’’ and inserting ‘‘Execu-
tive Director of the Social Security Administration’’.
SEC. 107. OTHER CONFORMING AMENDMENTS.
Title VII of the Social Security Act is amended—
(1) by striking section 704 (42 U.S.C. 904) and
inserting the following new section:
‘‘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 adminis-
tration of the functions with which they are charged under
this Act. In addition to the number of copies of such reports
authorized by other law to be printed, there is hereby au-
thorized 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 par-
ticipating in or concerned with the programs provided for
in this Act.’’;
(2) in section 709(b)(2) (42 U.S.C. 910(b)(2)),
by striking ‘‘(as estimated by the Secretary)’’ and in-
serting ‘‘, as estimated by the Social Security Board
or the Secretary (whichever administers the program
involved),’’; and
(3) by adding at the end thereof the following
new section:
‘‘DUTIES AND AUTHORITY OF SECRETARY
‘‘SEC. 712. (a) 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 concerning
the programs administered by the Secretary and related
subjects; except that nothing in this section shall be con-
strued to require the Secretary to make studies or rec-
ommendations with respect to programs administered by
the Social Security Administration.
‘‘(b) 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 Secretary’s functions under this Act. Appointments
of attorneys and experts may be made without regard to
the civil service laws.’’.
SEC. 108. 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, court
order, or other document to the Department of Health and
Human Services with respect to such Department’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, 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 Act or a provision
of law amended by this Act), regulation, rule, record, court
order, or other document to the Secretary of Health and
Human Services with respect to such Secretary’s functions
under such programs, such reference shall be considered a
reference to the Social Security Board.
(c) REFERENCES TO OTHER OFFICERS AND EMPLOY-
EES.—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 any
other officer or employee of the Department of Health and
Human Services with respect to such officer’s or employee’s
functions under such programs, such reference shall be con-
sidered a reference to the appropriate officer or employee
of the Social Security Administration.
SEC. 109. EFFECTIVE DATES.
(a) IN GENERAL.—Sections 101, 102(a), 103, 104,
106, 107, and 108 of this Act (and the amendments made
thereby) shall take effect October 1, 1995.
(b) EXCEPTIONS.—Section 102(b) of this Act shall take
effect upon the entry upon office of all initial members of
the Social Security Board. Sections 102(c) and 105 of this
Act shall take effect on the date of the enactment of this
Act.
(c) NEW SPENDING AUTHORITY.—Any new spending
authority provided by this title shall be effective for any
fiscal year only to such extent or in such amounts as are
provided in advance in appropriation Acts.
TITLE 
II—IMPROVEMENTS 
TO
THE 
OLD-AGE, 
SURVIVORS,
AND DISABILITY INSURANCE
PROGRAM
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 REP-
RESENTATIVE PAYEES.—
(A) IN GENERAL.—Section 205(j)(1) of the
Social Security Act (42 U.S.C. 405(j)(1)) is
amended—
(i) by inserting after the first sentence
the following new sentence: ‘‘In the case of
an individual entitled to benefits based on
disability, if alcoholism or drug addiction is
a contributing factor material to the Sec-
retary’s determination that the individual
is under a disability, certification of pay-
ment of such benefits to a representative
payee shall be deemed to serve the interest
of such individual under this title.’’; and
(ii) in the last sentence, by inserting
‘‘, if the interest of the individual under
this title would be served thereby,’’ after ‘‘al-
ternative representative payee or’’.
(B) EFFECTIVE
DATE.—The amendments
made by subparagraph (A) shall apply with re-
spect to benefits for months beginning after 180
days after the date of the enactment of this Act.
(C) STUDY REGARDING FEASIBILITY, COST,
AND
EQUITY
OF
REQUIRING
REPRESENTATIVE
PAYEES
FOR
ALL
DISABILITY
BENEFICIARIES
SUFFERING FROM ALCOHOLISM OR DRUG ADDIC-
TION.—
(i) STUDY.—As soon as practicable
after the date of the enactment of this Act,
the Secretary of Health and Human Serv-
ices shall conduct a study of the representa-
tive 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 addic-
tion, irrespective of whether the alco-
holism or drug addiction was material
in any case to the Secretary’s deter-
mination of disability,
(II) the feasibility of and appro-
priate timetable for 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 addi-
tion or alcoholism and ways of ad-
dressing such affliction, including the
feasibility of requiring treatment, and
(IV) the extent to which children’s
representative payees are afflicted by
drug addiction or alcoholism, and
methods to identify children’s rep-
resentative payees afflicted by drug ad-
dition or alcoholism and to ensure that
benefits continue to be provided to
beneficiaries appropriately.
(ii) REPORT.—Not later than April 1,
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 leg-
islative changes as the Secretary considers
appropriate.
(2) INCREASED
RELIANCE
ON
PROFESSIONAL
REPRESENTATIVE PAYEES.—
(A) PREFERENCE REQUIRED FOR ORGANI-
ZATIONAL
REPRESENTATIVE
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 determina-
tion that the individual is under a disability, when select-
ing 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 State or local government agency whose
mission is to carry out income maintenance, social
service, or health care-related activities, or
‘‘(III) a State or local government agency with
fiduciary responsibilities,
(or a designee of such an agency if the Secretary deems it
appropriate), unless the Secretary determines that selection
of such an agency would not be appropriate.’’.
(B) AVAILABILITY
OF
PUBLIC
AGENCIES
AND
OTHER
QUALIFIED
ORGANIZATIONS
TO
SERVE
AS
REPRESENTATIVE
PAYEES.—Section
205(j)(4) of such Act (42 U.S.C. 405(j)(4)) is
amended—
(i) in subparagraph (A)—
(I) by striking ‘‘exceed the lesser
of—’’ and inserting ‘‘exceed—’’; and
(II) by striking clauses (i) and
(ii) and inserting the following:
‘‘(i) in any case in which an individ-
ual is entitled to benefits based on disability
and alcoholism or drug addiction is a con-
tributing factor material to the Secretary’s
determination that the individual is under
a disability, 10 percent of the monthly bene-
fit involved, or
‘‘(ii) in any other case, the lesser of—
‘‘(I) 10 percent of the monthly
benefit involved, or
‘‘(II) $25.00 per month.’’;
(ii) in subparagraph (B)—
(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 ‘‘rep-
resentative payee, if such agency,’’;
(III) by striking ‘‘, and’’ at the
end of clause (ii) and inserting a pe-
riod; and
(IV) by striking clause (iii); and
(iii) by striking subparagraph (D), ef-
fective July 1, 1994.
(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 in-
surance benefit of such individual under section 223 or a
child’s, widow’s, or widower’s insurance benefit of such in-
dividual under section 202 based on such individual’s dis-
ability.’’.
(3) NONPAYMENT
OR
TERMINATION
OF
BENE-
FITS.—
(A) IN GENERAL.—Section 225 of such Act
(42 U.S.C. 425) is amended—
(i) by striking the heading and insert-
ing the following:
‘‘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 subsection:
‘‘Nonpayment or Termination of Benefits Where
Entitlement Involves Alcoholism or Drug Addiction
‘‘(c)(1)(A) Notwithstanding any other provision of this
title, in the case of any individual entitled to benefits based
on disability, if alcoholism or drug addiction is a contribut-
ing factor material to the Secretary’s determination that
such individual is under a disability and such individual
is determined by the Secretary not to be in compliance with
the requirements of this subsection for a month, such bene-
fits shall be suspended for a period commencing with such
month and ending with the month preceding the first
month, after the determination of noncompliance, in which
such individual demonstrates that he or she has reestab-
lished and maintained compliance with such requirements
for the applicable period specified in paragraph (3).
‘‘(B) For purposes of this subsection, in the case of an
individual who is entitled to benefits based on disability
for the first month ending after 180 days after the date of
the enactment of the Social Security Administrative Reform
Act of 1994, if such individual has a primary diagnosis
of alcoholism or drug addiction, such alcoholism or drug
addiction shall be treated as a contributing factor material
to the Secretary’s determination of disability.
‘‘(2)(A) An individual described in paragraph (1) is
in compliance with the requirements of this subsection for
a month if such individual in such month undergoes any
medical or psychological treatment that may be appro-
priate, for such individual’s condition diagnosed as sub-
stance abuse or alcohol abuse and for the stage of such indi-
vidual’s rehabilitation, at an institution or facility ap-
proved for purposes of this subsection by the Secretary, and
complies in such month with the terms, conditions, and re-
quirements of such treatment and with requirements im-
posed by the Secretary under paragraph (6).
‘‘(B) An individual described in paragraph (1) shall
not be determined to be not in compliance with the require-
ments of this subsection for a month if access by such indi-
vidual to such treatment is not reasonably available for that
month, as determined under regulations of the Secretary.
‘‘(3) The applicable period specified in this paragraph
is—
‘‘(A) 2 consecutive months, in the case of a first
determination that an individual is not in compli-
ance with the requirements of this subsection,
‘‘(B) 3 consecutive months, in the case of the sec-
ond such determination with respect to the individ-
ual, and
‘‘(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), as the termi-
nation month with respect to such entitlement.
‘‘(5)(A) Subject to subparagraph (B), monthly insur-
ance benefits under this title which would be payable to any
individual (other than the disabled individual to whom ben-
efits are not payable by reason of this subsection) on the
basis of the wages and self-employment income of such dis-
abled individual but for the provisions of paragraph (1)
or (4), shall be payable as though such disabled individual
were receiving such benefits which are not payable under
this subsection (and, in the case of a disabled individual
whose entitlement is terminated under paragraph (4), as
though such disabled individual’s entitlement were not ter-
minated).
‘‘(B) If the monthly insurance benefits of a disabled
individual referred to in subparagraph (A) are not payable
by reason of termination of entitlement under paragraph
(4), monthly insurance benefits which are payable to any
other individual on the basis of the wages and self-employ-
ment income of such disabled individual pursuant to sub-
paragraph (A) shall not be payable for any month after
2 years after the last month of such entitlement.
‘‘(6)(A) The Secretary shall provide for the monitoring
and testing of all individuals who are receiving benefits
under this title and who as a condition of payment of such
benefits are required to be undergoing treatment and com-
plying with the terms, conditions, and requirements thereof
as described in paragraph (2)(A), in order to assure such
compliance and to determine the extent to which the imposi-
tion of such requirements is contributing to the achievement
of the purposes of this title. The Secretary shall annually
submit to the Congress a full and complete report on the
Secretary’s activities under this paragraph. Each such an-
nual report shall include the number and percentage of such
individuals who did not receive regular drug testing during
the year covered by the report.
‘‘(B) The Secretary, in consultation with drug and al-
cohol treatment professionals, shall issue regulations—
‘‘(i) defining appropriate treatment for alcohol-
ics and drug addicts who are subject to required med-
ical or psychological treatment under this subsection,
and
‘‘(ii) establishing guidelines to be used to review
and evaluate their compliance, including measures of
the progress of participants in such programs.
‘‘(C)(i) For purposes of carrying out the requirements
of subparagraphs (A) and (B), the Secretary shall establish
in each State a referral and monitoring agency for such
State.
‘‘(ii) Each referral and monitoring agency for a State
shall—
‘‘(I) identify appropriate placements, for indi-
viduals residing 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 paragraph (2)(A) by individuals who are referred
by the agency to such placements and promptly re-
port failures to comply to the Secretary.
‘‘(7) 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—
‘‘(A) the amount of such past-due benefit paid in
such month, and
‘‘(B) the amount of any benefit for the preceding
month under such current entitlement which is pay-
able in such month,
does not exceed 200 percent of the amount of such benefit
for the preceding month.
‘‘(8) 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 determina-
tion that such individual is under a disability, the month
following the 36-month period beginning with such individ-
ual’s first month of entitlement shall be deemed, for pur-
poses of section 223(a)(1) or subsection (d)(1)(G)(i), (e)(1),
or (f)(1) of section 202 (as applicable), as the termination
month with respect to such entitlement, and such individual
shall be deemed not to be entitled to any past-due benefits
under such entitlement remaining unpaid as of the end of
such 36-month period. Such individual may not be entitled
to benefits based on disability for any month after such 36-
month period if, with respect to such entitlement, alcohol-
ism or drug addition is a contributing factor material to
(B) 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 SE-
CURITY INCOME BENEFITS UNDER TITLE XVI OF THE SO-
CIAL SECURITY ACT.—
(1) REQUIRED PAYMENT OF BENEFITS TO REP-
RESENTATIVE 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), by adding at the end
the following: ‘‘In the case of an individual
entitled to benefits under this title by reason
of disability, if alcoholism or drug addic-
tion is a contributing factor material to the
Secretary’s determination that the individ-
ual is disabled, the payment of such benefits
to a representative payee shall be deemed to
serve the interest of such individual under
this title.’’; and
(ii) in clause (iii), by striking ‘‘to the
individual or eligible spouse or to an alter-
native representative payee of the individ-
ual or eligible spouse’’ and inserting ‘‘to an
alternative representative payee of the indi-
vidual or eligible spouse or, if the interest of
the individual under this title would be
served thereby, to the individual 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 alcoholism or drug addition is a
contributing factor material to the Secretary’s
determination that the individual is disabled) is
entitled to benefits under this title by reason of
disability.’’.
(C) EFFECTIVE
DATE.—The amendments
made by subparagraphs (A) and (B) shall apply
with respect to benefits for 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 ORGANI-
ZATIONAL
REPRESENTATIVE
PAYEES.—Section
1631(a)(2)(B) 
of 
such 
Act 
(42 
U.S.C.
1383(a)(2)(B)) 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 entitled to benefits
under this title by reason of disability, if alcoholism or drug
addiction is a contributing factor material to the Sec-
retary’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 State or local government agency whose
mission is to carry out income maintenance, social
service, or health care-related activities; or
‘‘(III) a State or local government agency with
fiduciary responsibilities,
(or a designee of such an agency if the Secretary deems it
appropriate), unless the Secretary determines that selection
of such an agency would not be appropriate.’’;
(iii) in clause (viii) (as so redesig-
nated), by striking ‘‘clause (viii)’’ and in-
serting ‘‘clause (ix)’’;
(iv) in clause (ix) (as so redesignated),
by striking ‘‘(vii)’’ and inserting ‘‘(viii)’’;
(v) in clause (xiii) (as so redesig-
nated)—
(I) by striking ‘‘(xi)’’ and insert-
ing ‘‘(xii)’’; and
(II) by striking ‘‘(x)’’ and insert-
ing ‘‘(xi)’’.
(B) AVAILABILITY
OF
PUBLIC
AGENCIES
AND
OTHER
QUALIFIED
ORGANIZATIONS
TO
SERVE
AS
REPRESENTATIVE
PAYEES.—Section
1631(a)(2)(D) 
of 
such 
Act 
(42 
U.S.C.
1383(a)(2)(D)) is amended—
(i) in clause (i)—
(I) by striking ‘‘exceed the lesser
of—’’ and inserting ‘‘exceed—’’; and
(II) by striking subclauses (I) and
(II) and inserting the following:
‘‘(I) in any case in which an individual is enti-
tled to 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, 10 percent of the monthly
benefit involved, or
‘‘(II) in any other case, the lesser of—
‘‘(aa) 10 percent of the monthly benefit in-
volved, or
‘‘(bb) $25.00 per month.’’;
(ii) in clause (ii)—
(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);
and
(iii) by striking clause (iv), effective
July 1, 1994.
(3) NONPAYMENT
OR
TERMINATION
OF
BENE-
FITS.—
(A) IN
GENERAL.—Section 1611(e)(3) of
such Act (42 U.S.C. 1382(e)(3)), is amended by
redesignating subparagraph (B) as subpara-
graph (C) and by inserting after subparagraph
(A) the following:
‘‘(B)(i) Notwithstanding any other provision of this
title, in the case of any individual entitled to benefits under
this title solely by reason of disability, if alcoholism or drug
addiction is a contributing factor material to the Sec-
retary’s determination that such individual is disabled and
such individual is determined by the Secretary not to be
in compliance with the requirements of this subparagraph
for a month, such benefits shall be suspended for a period
commencing with such month and ending with the month
preceding the first month, after the determination of non-
compliance, in which such individual demonstrates that he
or she has reestablished and maintained compliance with
such requirements 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 the individual in such month undergoes any
medical or psychological treatment that may be appro-
priate, for the individual’s condition diagnosed as substance
abuse or alcohol abuse and for the stage of the individual’s
rehabilitation, at an institution or facility approved for
purposes of this subparagraph by the Secretary, and com-
plies in such month with the terms, conditions, and require-
ments of such treatment and with requirements imposed by
the Secretary under subparagraph (C).
‘‘(II) An individual described in clause (i) shall not
be determined to be not in compliance with the require-
ments of this subparagraph for a month if access by such
individual to such treatment is not reasonably available for
the month, as determined under regulations of the Sec-
retary.
‘‘(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 compli-
ance 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 subsequent such determination with respect to
the individual.
‘‘(iv) An individual shall not be an eligible individual
for purposes of this title for the 12-month period that begins
with the end of any period of 12 consecutive months for
which the benefits of the individual under this title have
been suspended by reason of this subparagraph.
‘‘(v) In the case of any individual entitled to benefits
under this title by reason of disability, if alcoholism or drug
addiction is a contributing factor material to the Sec-
retary’s determination that such individual is disabled,
such individual may not be entitled to such benefits by rea-
son of disability (or any past-due benefits under such enti-
tlement) for any month after the 36-month period beginning
with such individual’s first month of such entitlement, not-
withstanding section 1619(a).
‘‘(vi)(I) The Secretary shall not, in a month, pay to
an individual described in clause (i) benefits under this title
the payment of which is past due, in an amount that ex-
ceeds the amount of benefits under this title which are pay-
able to the individual for the month and the payment of
which is not past due.
‘‘(II) As used in subclause (I) of this clause, the term
‘benefits under this title’ includes supplementary payments
of the type described in section 1616(a) and payments pur-
suant to an agreement entered into under section 212(a)
of Public Law 93–66.’’.
(B) REFERRAL, MONITORING, AND TREAT-
MENT.—Section 1611(e)(3)(C) of such Act (42
U.S.C. 1382(e)(3)(C)), as so designated by the
amendment made by subparagraph (A) of this
paragraph, is amended—
(i) by adding at the end the following:
‘‘Each such annual report shall include the
number and percentage of such individuals
who did not receive regular drug testing
during the year covered by the report.’’;
(ii) by inserting ‘‘(i)’’ after ‘‘(C)’’; and
(iii) by adding after and below the end
following:
‘‘(ii) The Secretary, in consultation with drug and al-
cohol treatment professionals, shall issue regulations—
‘‘(I) defining appropriate treatment for alcohol-
ics and drug addicts who are subject to required med-
ical or psychological treatment under this subpara-
graph; and
‘‘(II) establishing guidelines to be used to review
and evaluate their compliance, including measures of
the progress of participants in such programs.
‘‘(iii)(I) For purposes of carrying out the requirements
of clauses (i) and (ii), the Secretary shall establish in each
State a referral and monitoring agency for the State.
‘‘(II) Each referral and monitoring agency for a State
shall—
‘‘(aa) identify appropriate placements, for indi-
viduals residing in the State who are entitled to bene-
fits under this title by reason of disability and with
respect to whom alcoholism or drug addiction is a
contributing factor material to the Secretary’s deter-
mination that they are disabled, where they may ob-
tain treatment described in subparagraph (B)(ii)(I);
‘‘(bb) refer such individuals to such placements
for such treatment; and
‘‘(cc) monitor compliance with the requirements
of subparagraph (B) by individuals who are referred
by the agency to such placements, and promptly re-
port to the Secretary any failure to comply with such
requirements.’’.
(C) PRESERVATION
OF
MEDICAID
BENE-
FITS.—Section 1634 of such Act (42 U.S.C.
13283c) is amended by adding at the end the fol-
lowing:
‘‘(e) Each person to whom benefits under this title by
reason of disability are not payable for any month solely
by reason of section 1611(e)(3)(B) shall be treated, for pur-
poses of title XIX, as receiving benefits under this title for
such month.’’.
(D) CONFORMING
AMENDMENTS.—Section
1611(e)(3) of such Act (42 U.S.C. 1382(e)(3)), as
amended by subparagraphs (A) and (B) of this
paragraph, is amended—
(i) in subparagraph (A), by striking
‘‘(B)’’ and inserting ‘‘(C)’’; and
(ii) in subparagraph (C), by inserting
‘‘or (B)’’ after ‘‘(A)’’.
(E) EFFECTIVE DATE.—
(i) IN GENERAL.—Except as provided
in clauses (ii) and (iii), the amendments
made by this paragraph shall apply with
respect to benefits for months beginning
after 180 days after the date of the enact-
ment of this Act.
(ii) TIME LIMITATION ON BENEFITS.—
Section 1611(e)(3)(B)(v) of the Social Secu-
rity Act (as added by the amendment made
by subparagraph (A) of this paragraph)
shall apply with respect to benefits for
months ending after 180 days after the date
of the enactment of this Act, and, for pur-
poses of such section, in the case of any in-
dividual entitled to benefits by reason of
disability for the first month ending after
180 days after the date of the enactment of
this Act, such month shall be treated as such
individual’s first month of entitlement to
such benefits.
(iii) ESTABLISHMENT
OF
REFERRAL
AND
MONITORING
AGENCIES.—Section
1611(e)(3)(C)(iii) of the Social Security Act
(as added by the amendment made by sub-
paragraph (B)(iii) of this paragraph) shall
take effect 180 days after the date of the en-
actment 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 Sec-
retary shall make determinations under this title
with respect to substantial gainful activity, with-
out regard to the legality of the activity.’’.
(B) EFFECTIVE
DATE.—The amendment
made by subparagraph (A) shall take effect on
the date of the enactment of this Act.
(c) EFFECTIVE DATE.—The amendments made by the
preceding provisions of this section shall apply to benefits
payable for months beginning 180 or more days after the
date of the enactment of this Act.
(d) DEMONSTRATION PROJECTS.—
(1) IN GENERAL.—The Secretary of Health and
Human Services shall develop and carry out dem-
onstration projects designed to explore innovative re-
ferral, monitoring, and treatment approaches with re-
spect to—
(A) individuals who are entitled to disabil-
ity insurance benefits or child’s, widow’s, or wid-
ower’s insurance benefits based on disability
under title II of the Social Security Act, and
(B) individuals who are eligible for supple-
mental security income benefits under title XVI
of such Act based solely on disability,
in cases in which alcoholism or drug addiction is a
contributing factor material to the Secretary’s deter-
mination that individuals are under a disability.
(2) SCOPE.—The demonstration projects devel-
oped under paragraph (1) shall be of sufficient scope
and shall be carried out on a wide enough scale to
permit a thorough evaluation of the alternative ap-
proaches under consideration while giving assurance
that the results derived from the projects will obtain
generally in the operation of the programs involved
without committing such programs to the adoption of
any particular system either locally or nationally.
(3) FINAL REPORT.—The Secretary shall 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 ap-
propriate. The authority under this section shall ter-
minate upon the transmittal of such final report.
SEC. 202. ISSUANCE OF PHYSICAL DOCUMENTS IN THE
FORM OF BONDS, NOTES, OR CERTIFICATES
TO THE SOCIAL SECURITY TRUST FUNDS.
(a) REQUIREMENT
THAT OBLIGATIONS ISSUED
TO
THE OASDI TRUST FUNDS BE EVIDENCED BY PAPER IN-
STRUMENTS IN THE FORM OF BONDS, NOTES, OR CERTIFI-
CATES
OF
INDEBTEDNESS
SETTING
FORTH
THEIR
TERMS.—Section 201(d) of the Social Security Act (42
U.S.C. 401(d)) is amended by inserting after the fifth sen-
tence the following new sentence: ‘‘Each obligation issued
for purchase by the Trust Funds under this subsection shall
be evidenced by a paper instrument in the form of a bond,
note, or certificate of indebtedness issued by the Secretary
of the Treasury setting forth the principal amount, date of
maturity, and interest rate of the 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 obli-
gation 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 RE-
DEMPTION 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 the Treas-
ury to either of the Trust Funds of any such interest or
proceeds 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 is-
sued, and payments made, after 60 days after the
date of the enactment of this Act.
(2) TREATMENT
OF
OUTSTANDING
OBLIGA-
TIONS.—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 In-
surance Trust Fund or the Federal Disability Insur-
ance Trust Fund, as applicable, a paper instrument,
in the form of a bond, note, or certificate of indebted-
ness, for each obligation which has been issued to the
Trust Fund under section 201(d) of the Social Secu-
rity 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 ob-
ligation, 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 sup-
ported 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 prin-
cipal and interest.
SEC. 203. EXPLICIT REQUIREMENTS FOR MAINTENANCE OF
TELEPHONE ACCESS TO LOCAL OFFICES OF
THE SOCIAL SECURITY ADMINISTRATION.
(a) MAINTENANCE OF SERVICE TO LOCAL OFFICES.—
(1) IN GENERAL.—Section 5110(a) of the Omni-
bus Budget Reconciliation Act of 1990 (104 Stat.
1388–272) is amended by adding at the end the fol-
lowing new sentence: ‘‘In carrying out the require-
ments of the preceding sentence, the Secretary shall
reestablish and maintain in service at least the same
number of telephone lines to each such local office as
was in place as of such date, including telephone sets
for connections to such lines.’’.
(2) EFFECTIVE DATE.—The Secretary of Health
and Human Services shall ensure that the require-
ments of the amendment made by paragraph (1) are
carried out no later than 90 days after the date of the
enactment of this Act.
(3) GAO REPORT.—The Comptroller General of
the United States shall make an independent deter-
mination of the number of telephone lines to each
local office of the Social Security Administration
which are in place as of 90 days after the enactment
of this Act and shall report his findings to the Com-
mittee on Ways and Means of the House of Represent-
atives and the Committee on Finance of the Senate no
later than 150 days after the date of the enactment
of this Act.
(b) MAINTENANCE OF TOLL-FREE TELEPHONE NUM-
BER SERVICE.—The Secretary of Health and Human Serv-
ices shall ensure that toll-free telephone service provided by
the Social Security Administration is maintained at a level
which is at least equal to that in effect on the date of the
enactment of this Act.
SEC. 204. EXPANSION OF STATE OPTION TO EXCLUDE SERV-
ICE OF ELECTION OFFICIALS OR ELECTION
WORKERS FROM COVERAGE.
(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 Omnibus Budget Reconciliation Act
of 1990) is amended by striking ‘‘$100’’ and inserting
‘‘$1,000 with respect to service performed during
1995, and the adjusted amount determined under sec-
tion 218(c)(8)(B) for any subsequent year with re-
spect to service performed during such subsequent
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 1995, and the adjusted
amount determined under section 218(c)(8)(B) of the
Social Security Act for any subsequent year with re-
spect to service performed during such subsequent
year’’.
(b) CONFORMING AMENDMENTS RELATING TO MEDI-
CARE QUALIFIED 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 per-
formed during 1995, and the adjusted amount deter-
mined under section 218(c)(8)(B) for any subsequent
year with respect to service performed during such
subsequent 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
1995, and the adjusted amount determined under sec-
tion 218(c)(8)(B) of the Social Security Act for any
subsequent year with respect to service performed dur-
ing such subsequent 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 1995, and
the adjusted amount determined under subparagraph
(B) for any subsequent year with respect to service
performed during such subsequent 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 effec-
tive with respect to services performed in and after
the calendar year in which the modification 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 fur-
ther amended—
(1) by inserting ‘‘(A)’’ after ‘‘(8)’’; and
(2) by adding at the end the following new sub-
paragraph:
‘‘(B) For each year after 1995, the Secretary shall ad-
just 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, 1993
shall be substituted for the calendar year referred to
in section 215(a)(1)(B)(ii)(II), and
‘‘(ii) such amount as so adjusted, if not a mul-
tiple of $100, shall be rounded to the next higher mul-
tiple 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 sub-
paragraph not later than November 1 preceding the year
for which the adjustment is made.’’.
(e) EFFECTIVE DATE.—The amendments made by sub-
sections (a), (b), and (c) shall apply with respect to service
performed on or after January 1, 1995.
SEC. 205. 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 Se-
curity 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 subparagraphs (F) and (G), respectively; and
(3) by inserting after subparagraph (D) the fol-
lowing:
‘‘(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 num-
bers issued by the Secretary for the additional pur-
poses described in clause (ii) if such numbers have
been collected and are otherwise utilized by such State
(or political subdivision) in accordance with applica-
ble law, and
‘‘(II) any district court of the United States may
use, for such additional purposes, any such social se-
curity account numbers 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 indi-
viduals who are ineligible to serve on a jury by rea-
son 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 subpara-
graph 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) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect on the date of the enactment
of this Act.
SEC. 206. AUTHORIZATION FOR ALL STATES TO EXTEND
COVERAGE TO STATE AND LOCAL POLICEMEN
AND FIREMEN UNDER EXISTING COVERAGE
AGREEMENTS.
(a) IN GENERAL.—Section 218(l) of the Social Secu-
rity 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 fol-
lows through ‘‘prior to the date of enactment of this
subsection’’ and inserting ‘‘a State entered into pur-
suant 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 strik-
ing ‘‘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. 207. LIMITED EXEMPTION FOR CANADIAN MINISTERS
FROM CERTAIN SELF-EMPLOYMENT TAX LI-
ABILITY.
(a) IN GENERAL.—Notwithstanding any other provi-
sion 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 Se-
curity Act was in effect, and
(3) such individual was required to pay con-
tributions on the earnings from such services under
the social insurance system of Canada,
then such individual may file a certificate under this sec-
tion 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, notwith-
standing any judgment which has been entered to the con-
trary, such individual shall be exempt from payment of
such tax with respect to services described in paragraphs
(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 individ-
ual 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 constitute self-employment
income under section 211(b) of the Social Security Act (42
U.S.C. 411(b)), and, if such individual’s primary 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 shall re-
compute such primary insurance amount so as to take into
account the provisions of this subsection. The recomputation
under this subsection shall be effective with respect to bene-
fits for months following approval of the certificate of ex-
emption.
SEC. 208. EXCLUSION OF TOTALIZATION BENEFITS FROM
THE APPLICATION OF THE WINDFALL ELIMI-
NATION PROVISION.
(a) IN GENERAL.—Section 215(a)(7) of the Social Se-
curity Act (42 U.S.C. 415(a)(7)) is amended—
(1) in subparagraph (A), by striking ‘‘but ex-
cluding’’ and all that follows through ‘‘1937’’ and in-
serting ‘‘but excluding (I) a payment under the Rail-
road Retirement Act of 1974 or 1937, and (II) a pay-
ment 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 eligi-
bility for old-age or disability insurance benefits is
based on an agreement concluded pursuant to section
233 or an individual’’.
(b) CONFORMING AMENDMENT RELATING TO BENE-
FITS 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 ex-
cluding (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 con-
cluded 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 January 1995.
SEC. 209. EXCLUSION OF MILITARY RESERVISTS FROM AP-
PLICATION OF THE GOVERNMENT PENSION
OFFSET AND WINDFALL ELIMINATION PROVI-
SIONS.
(a) EXCLUSION FROM GOVERNMENT PENSION OFFSET
PROVISIONS.—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 amend-
ed—
(1) in subparagraph (A)(ii), by striking ‘‘unless
subparagraph (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 matter as clause (ii), and by inserting before
such clause (ii) (as so redesignated) the following:
‘‘(B)(i) Subparagraph (A)(i) shall not apply with re-
spect 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 PROVI-
SIONS.—Section 215(a)(7)(A) of such Act (as amended by
section 210(a) of this Act) and section 215(d)(3) of such
Act (as amended by section 210(b) of this Act) are each
further amended—
(1) by striking ‘‘and’’ before ‘‘(II)’’; and
(2) by striking ‘‘section 233’’ and inserting ‘‘sec-
tion 233, and (III) a payment based wholly on serv-
ice 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 January 1995.
SEC. 210. REPEAL OF THE FACILITY-OF-PAYMENT PROVI-
SION.
(a) REPEAL OF RULE PRECLUDING REDISTRIBUTION
UNDER FAMILY MAXIMUM.—Section 203(i) of the Social
Security Act (42 U.S.C. 403(i)) is repealed.
(b) COORDINATION UNDER FAMILY MAXIMUM OF RE-
DUCTION IN BENEFICIARY’S AUXILIARY BENEFITS WITH
SUSPENSION OF AUXILIARY BENEFITS OF OTHER BENE-
FICIARY UNDER EARNINGS TEST.—Section 203(a)(4) of
such Act (42 U.S.C. 403(a)(4)) is amended by striking ‘‘sec-
tion 222(b). Whenever’’ and inserting the following: ‘‘section
222(b). Notwithstanding the preceding sentence, any reduc-
tion 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 sub-
section (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).
Whenever’’.
(c) CONFORMING AMENDMENT APPLYING EARNINGS
REPORTING REQUIREMENT DESPITE SUSPENSION OF BEN-
EFITS.—The third sentence 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 paragraph (3) of this subsection, un-
less—
‘‘(I) such individual is entitled to benefits
under subsection (b), (c), (d), (e), (f), (g), or (h)
of section 202,
‘‘(II) such benefits are reduced under sub-
section (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 sub-
section (b), (c), (d), (e), (f), (g), or (h) of section
202 on the basis of the same wages and self-em-
ployment income and who does not live in the
same household as such individual.
The Secretary may grant’’.
(d) CONFORMING AMENDMENT DELETING SPECIAL IN-
COME TAX TREATMENT OF BENEFITS NO LONGER RE-
QUIRED BY REASON OF 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 pay-
able 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. 211. MAXIMUM FAMILY BENEFITS IN GUARANTEE
CASES.
(a) IN GENERAL.—Section 203(a) of the Social Secu-
rity 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 bene-
ficiaries may be entitled under sections 202 and 223
for a month on the basis of the wages and self-employ-
ment income of an individual whose primary insur-
ance 
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 in-
surance 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 bene-
ficiaries may be entitled under sections 202 and 223
for a month on the basis of the wages and self-employ-
ment income of an individual whose primary insur-
ance amount is computed under section 215(a)(2)(C)
shall equal the total monthly benefits which were au-
thorized by this section with respect to such individ-
ual’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 individual’s primary insurance amount for the
last month of his prior entitlement to disability in-
surance benefits was computed under paragraph (6),
and
‘‘(ii) the individual’s primary insurance amount
is computed under subparagraph (B)(i) or (C) of sec-
tion 215(a)(2) by reason of the individual’s entitle-
ment to old-age insurance benefits or death,
the total monthly benefits shall equal the total monthly ben-
efits that would have been authorized with respect to the
primary insurance 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 paragraph (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 (7),’’ and inserting ‘‘Subject to para-
graph (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-employment income of an individual
who—
(1) becomes entitled to an old-age insurance ben-
efit 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 January 1995.
SEC. 212. AUTHORIZATION FOR DISCLOSURE BY THE SEC-
RETARY OF HEALTH AND HUMAN SERVICES
OF 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 ‘‘subsection (d)’’ and inserting ‘‘subsection
(e)’’; and
(3) by inserting after subsection (c) the following
new subsection:
‘‘(d) Notwithstanding any other provision of this sec-
tion, in any case in which—
‘‘(1) information regarding whether an individ-
ual 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 Sec-
retary 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 RE-
GARDING 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 insert-
ing ‘‘for the purpose of—’’;
(2) by striking ‘‘carrying out, in accordance
with an agreement’’ and inserting the following:
‘‘(A) carrying out, in accordance with an
agreement’’;
(3) by striking ‘‘program.’’ and inserting ‘‘pro-
gram; or’’; and
(4) by adding at the end the following new sub-
paragraph:
‘‘(B) providing information regarding the
mortality status of individuals for epidemiolog-
ical and similar research in accordance with sec-
tion 1106(d) of the Social Security Act.’’.
(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. 213. MISUSE OF SYMBOLS, EMBLEMS, OR NAMES IN
REFERENCE TO SOCIAL SECURITY PROGRAMS
AND AGENCIES.
(a) PROHIBITION OF UNAUTHORIZED REPRODUCTION,
REPRINTING, OR DISTRIBUTION FOR FEE OF CERTAIN OF-
FICIAL PUBLICATIONS.—Section 1140(a) of the Social Secu-
rity Act (42 U.S.C. 1320b–10(a)) is amended—
(1) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively;
(2) by inserting ‘‘(1)’’ after ‘‘(a)’’; and
(3) by adding at the end the following new para-
graph:
‘‘(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 un-
less such person has obtained specific, written authorization
for such activity in accordance with regulations which the
Secretary shall prescribe.’’.
(b) ADDITION
TO PROHIBITED WORDS, LETTERS,
SYMBOLS, AND
EMBLEMS.—Paragraph (1) of section
1140(a) of such Act (as redesignated by subsection (a)) is
further amended—
(1) in subparagraph (A) (as redesignated), by
striking ‘‘Administration’, the letters ‘SSA’ or
‘HCFA’,’’ and inserting ‘‘Administration’, ‘Depart-
ment 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 redesignated), by
striking ‘‘Social Security Administration’’ each place
it appears and inserting ‘‘Social Security Adminis-
tration, Health Care Financing Administration, or
Department of Health and Human Services’’, and by
striking ‘‘or of the Health Care Financing Adminis-
tration’’.
(c) EXEMPTION FOR USE OF WORDS, LETTERS, SYM-
BOLS, AND EMBLEMS OF STATE AND LOCAL GOVERNMENT
AGENCIES BY SUCH AGENCIES.—Paragraph (1) of section
1140(a) of such Act (as redesignated by subsection (a)) is
further amended by adding at the end the following new
sentence: ‘‘The preceding provisions of this subsection shall
not apply with respect to the use by any agency or instru-
mentality of a State or political subdivision of a State of
any words or letters which identify an agency or instru-
mentality 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 subdivision of such State.’’.
(d) INCLUSION
OF REASONABLENESS STANDARD.—
Section 1140(a)(1) of such Act (as amended by the preced-
ing provisions of this section) is further amended, in the
matter following subparagraph (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 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 combina-
tion or variation thereof) in connection with an item de-
scribed 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, re-
printed, or distributed copy thereof) of a disclaimer of affili-
ation 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 sub-
section (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 distribu-
tion 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 REQUIRE-
MENT.—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 AD-
MINISTRATION DEPOSITED IN OASI TRUST FUND.—Sec-
tion 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, 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 Survivor’s Insurance Trust Fund.’’.
(j) ENFORCEMENT.—Section 1140 of such Act (42
U.S.C. 1320b–10) is amended by adding at the end the fol-
lowing new subsection:
‘‘(d) The preceding provisions of this section shall be
enforced through the Office of Inspector General of the De-
partment of Health and Human Services.’’.
(k) ANNUAL REPORTS.—Section 1140 of such Act (as
amended by the preceding provisions of this section) is fur-
ther amended by adding at the end the following new sub-
section:
‘‘(e) The Secretary shall include in the annual report
submitted pursuant to section 704 a report on the operation
of this section during the year covered by such annual re-
port. Such report shall specify—
‘‘(1) the number of complaints of violations of
this section received by the Social Security Adminis-
tration during the year,
‘‘(2) the number of cases in which a notice of
violation of this section was sent by the Social Secu-
rity Administration during the year requesting that
an individual cease activities in violation of this
section,
‘‘(3) the number of complaints of violations of
this section referred by the Social Security Adminis-
tration to the Inspector General in the Department of
Health and Human Services during the year,
‘‘(4) the number of investigations of violations of
this section undertaken by the Inspector General dur-
ing the year,
‘‘(5) the number of cases in which a demand let-
ter was sent during the year assessing a civil money
penalty under this section,
‘‘(6) the total amount of civil money penalties
assessed under this section during the year,
‘‘(7) the number of requests for hearings filed
during the year pursuant to subsection (c)(1) of this
section and section 1128A(c)(2),
‘‘(8) the disposition during such year of hearings
filed pursuant to sections 1140(c)(1) and 1128A(c)(2),
and
‘‘(9) the total amount of civil money penalties
under this section deposited into the Federal Old-Age
and Survivors Insurance Trust Fund during the
year.’’.
(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 connec-
tion 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 sub-
division of the Department 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,
‘‘(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 De-
partment of the Treasury,
‘‘(5) any symbol or emblem of an entity referred
to in paragraph (1) (including the design of any en-
velope or stationary used by such an entity), and
‘‘(6) any colorable imitation of any such words,
titles, abbreviations, initials, symbols, or emblems,
in a manner which could reasonably be interpreted or con-
strued as conveying the false impression that such advertise-
ment, solicitation, business activity, or product is in any
manner approved, endorsed, sponsored, or authorized by, or
associated with, the Department of the Treasury or any en-
tity referred to in paragraph (1) or any officer or employee
thereof.
‘‘(b) TREATMENT OF DISCLAIMERS.—Any determina-
tion of whether a person has violated the provisions of sub-
section (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 Treas-
ury 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 ex-
ceed $5,000 for each use of any material in violation
of subsection (a). If such use is in a broadcast or tele-
cast, the preceding sentence shall be applied by sub-
stituting ‘$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 viola-
tion with respect to which such penalty is im-
posed.
‘‘(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 be-
ginning 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 vio-
lates subsection (a), such person shall, upon convic-
tion 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 indict-
ment is found or the information instituted during
the 3-year period beginning on the date of the viola-
tion.
‘‘(3) COORDINATION WITH SUBSECTION (c).—No
criminal proceeding may be commenced under this
subsection with respect to any violation if a civil pen-
alty 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 Rep-
resentatives 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.—The amendments made by
this section shall apply with respect to violations occurring
after the date of the enactment of this Act.
SEC. 214. INCREASED PENALTIES FOR UNAUTHORIZED DIS-
CLOSURE OF SOCIAL SECURITY INFORMA-
TION.
(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 num-
ber,’’ 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. 215. INCREASE IN AUTHORIZED PERIOD FOR EXTEN-
SION 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 sub-
section (a) shall apply with respect to reports of earnings
for taxable years ending on or after December 31, 1994.
SEC. 216. EXTENSION OF DISABILITY INSURANCE PROGRAM
DEMONSTRATION PROJECT AUTHORITY.
(a) IN GENERAL.—Section 505 of the Social Security
Disability Amendments of 1980 (Public Law 96–265), as
amended by section 12101 of the Consolidated Omnibus
Budget Reconciliation Act of 1985 (Public Law 99–272),
section 10103 of the Omnibus Budget Reconciliation Act of
1989 (Public Law 101–239), and section 5120 of the Omni-
bus Budget Reconciliation Act of 1990 (Public Law 101–
508) is further amended—
(1) in paragraph (3) of subsection (a), by strik-
ing ‘‘June 10, 1993’’ and inserting ‘‘June 10, 1996’’;
(2) in paragraph (4) of subsection (a), by strik-
ing ‘‘1992’’ and inserting ‘‘1995’’; and
(3) in subsection (c), by striking ‘‘October 1,
1993’’ and inserting ‘‘October 1, 1996’’.
(b) EFFECTIVE DATE.—The amendments made by this
section shall take effect on the date of the enactment of this
Act.
SEC. 217. CROSS-MATCHING OF SOCIAL SECURITY ACCOUNT
NUMBER 
INFORMATION 
AND 
EMPLOYER
IDENTIFICATION 
NUMBER 
INFORMATION
MAINTAINED BY THE DEPARTMENT OF AGRI-
CULTURE.
(a) SOCIAL SECURITY ACCOUNT NUMBER INFORMA-
TION.—Clause (iii) of section 205(c)(2)(C) of the Social Se-
curity Act (42 U.S.C. 405(c)(2)(C)) (as added by section
1735(a)(3) of the Food, Agriculture, Conservation, and
Trade Act of 1990 (Public Law 101–624; 104 Stat. 3791))
is amended—
(1) by inserting ‘‘(I)’’ after ‘‘(iii)’’; and
(2) by striking ‘‘The Secretary of Agriculture
shall restrict’’ and all that follows and inserting the
following:
‘‘(II) The Secretary of Agriculture may share any in-
formation contained in any list referred to in subclause (I)
with any other agency or instrumentality of the United
States which otherwise has access to social security account
numbers in accordance with this subsection or other appli-
cable Federal law, except that the Secretary of Agriculture
may share such information only to the extent that such
Secretary determines such sharing would assist in verifying
and matching such information against information main-
tained by such other agency or instrumentality. Any such
information shared pursuant to this subclause may be used
by such other agency or instrumentality only for the pur-
pose of effective administration and enforcement of the Food
Stamp Act of 1977 or for the purpose of investigation of
violations of other Federal laws or enforcement of such laws.
‘‘(III) The Secretary of Agriculture, and the head of
any other agency or instrumentality referred to in this
subclause, shall restrict, to the satisfaction of the Secretary
of Health and Human Services, access to social security ac-
count numbers obtained pursuant to this clause only to offi-
cers and employees of the United States whose duties or re-
sponsibilities require access for the purposes described in
subclause (II).
‘‘(IV) The Secretary of Agriculture, and the head of
any agency or instrumentality with which information is
shared pursuant to clause (II), shall provide such other safe-
guards as the Secretary of Health and Human Services de-
termines to be necessary or appropriate to protect the con-
fidentiality of the social security account numbers.’’.
(b) EMPLOYER IDENTIFICATION NUMBER INFORMA-
TION.—Subsection (f) of section 6109 of the Internal Reve-
nue Code of 1986 (as added by section 1735(c) of the Food,
Agriculture, Conservation, and Trade Act of 1990 (Public
Law 101–624; 104 Stat. 3792)) (relating to access to em-
ployer identification numbers by Secretary of Agriculture
for purposes of Food Stamp Act of 1977) is amended—
(1) by striking paragraph (2) and inserting the
following:
‘‘(2) SHARING
OF
INFORMATION
AND
SAFE-
GUARDS.—
‘‘(A) SHARING OF INFORMATION.—The Sec-
retary of Agriculture may share any information
contained in any list referred to in paragraph
(1) with any other agency or instrumentality of
the United States which otherwise has access to
employer identification numbers in accordance
with this section or other applicable Federal law,
except that the Secretary of Agriculture may
share such information only to the extent that
such Secretary determines such sharing would
assist in verifying and matching such informa-
tion against information maintained by such
other agency or instrumentality. Any such infor-
mation shared pursuant to this subparagraph
may be used by such other agency or instrumen-
tality only for the purpose of effective adminis-
tration and enforcement of the Food Stamp Act
of 1977 or for the purpose of investigation of vio-
lations of other Federal laws or enforcement of
such laws.
‘‘(B) SAFEGUARDS.—The Secretary of Agri-
culture, and the head of any other agency or in-
strumentality referred to in subparagraph (A),
shall restrict, to the satisfaction of the Secretary
of the Treasury, access to employer identification
numbers obtained pursuant to this subsection
only to officers and employees of the United
States whose duties or responsibilities require ac-
cess for the purposes described in subparagraph
(A). The Secretary of Agriculture, and the head
of any agency or instrumentality with which in-
formation is shared pursuant to subparagraph
(A), shall provide such other safeguards as the
Secretary of the Treasury determines to be nec-
essary or appropriate to protect the confidential-
ity of the employer identification numbers.’’;
(2) in paragraph (3), by striking ‘‘by the Sec-
retary of Agriculture pursuant to this subsection’’ and
inserting ‘‘pursuant to this subsection by the Sec-
retary of Agriculture or the head of any agency or in-
strumentality with which information is shared pur-
suant to paragraph (2)’’, and by striking ‘‘social se-
curity account numbers’’ and inserting ‘‘employer
identification numbers’’; and
(3) in paragraph (4), by striking ‘‘by the Sec-
retary of Agriculture pursuant to this subsection’’ and
inserting ‘‘pursuant to this subsection by the Sec-
retary of Agriculture or any agency or instrumental-
ity with which information is shared pursuant to
paragraph (2)’’.
SEC. 218. CERTAIN TRANSFERS TO RAILROAD RETIREMENT
ACCOUNT MADE PERMANENT.
Subsection (c)(1)(A) of section 224 of the Railroad Re-
tirement Solvency Act of 1983 (relating to section 72(r) rev-
enue increase transferred to certain railroad accounts) is
amended by striking ‘‘with respect to benefits received before
October 1, 1992’’.
100
SEC. 219. AUTHORIZATION FOR USE OF SOCIAL SECURITY
ACCOUNT NUMBERS BY DEPARTMENT OF
LABOR IN ADMINISTRATION OF FEDERAL
WORKERS’ COMPENSATION LAWS.
Section 205(c)(2)(C) of the Social Security Act (42
U.S.C. 405(c)(2)(C)) is amended by adding at the end the
following new clause:
‘‘(ix) In the administration of the provisions of chapter
81 of title 5, United States Code, and the Longshore and
Harbor Workers’ Compensation Act (33 U.S.C. 901 et seq.),
the Secretary of Labor may require by regulation that any
person filing a notice of injury or a claim for benefits under
such provisions provide as part of such notice or claim such
person’s social security account number, subject to the re-
quirements of this clause. No officer or employee of the De-
partment of Labor shall have access to any such number
for any purpose other than the establishment of a system
of records necessary for the effective administration of such
provisions. The Secretary of Labor shall restrict, to the sat-
isfaction of the Secretary of Health and Human Services,
access to social security account numbers obtained pursuant
to this clause to officers and employees of the United States
whose duties or responsibilities require access for the ad-
ministration or enforcement of such provisions. The Sec-
retary of Labor shall provide such other safeguards as the
Secretary of Health and Human Services determines to be
101
necessary or appropriate to protect the confidentiality of
the social security account numbers.’’.
SEC. 220. COVERAGE UNDER FICA OF FEDERAL EMPLOYEES
TRANSFERRED 
TEMPORARILY 
TO 
INTER-
NATIONAL ORGANIZATIONS.
(a) TREAMENT
OF SERVICE
IN
THE EMPLOY
OF
INTERNATIONAL
ORGANIZATIONS
BY
CERTAIN
TRANS-
FERRED FEDERAL EMPLOYEES.—
(1) IN GENERAL.—Section 3121 of the Internal
Revenue Code of 1986 (relating to definitions) is
amended by adding at the end the following new sub-
section:
‘‘(y) SERVICE IN THE EMPLOY OF INTERNATIONAL OR-
GANIZATIONS BY CERTAIN TRANSFERRED FEDERAL EM-
PLOYEES.—
‘‘(1) IN GENERAL.—For purposes of this chapter,
service performed in the employ of an international
organization by an individual pursuant to a transfer
of such individual to such international organization
pursuant to section 3582 of title 5, United States
Code, shall constitute ‘employment’ if—
‘‘(A) immediately before such transfer, such
individual performed service with a Federal
agency which constituted ‘employment’ under
102
subsection (b) for purposes of the taxes imposed
by sections 3101(a) and 3111(a), and
‘‘(B) such individual would be entitled,
upon separation from such international organi-
zation and proper application, to reemployment
with such Federal agency under such section
3582.
‘‘(2) DEFINITIONS.—For purposes of this sub-
section—
‘‘(A) FEDERAL AGENCY.—The term ‘Federal
agency’ means an agency, as defined in section
3581(1) of title 5, United States Code.
‘‘(B) INTERNATIONAL ORGANIZATION.—The
term ‘international organization’ has the mean-
ing provided such term by section 3581(3) of
title 5, United States Code.’’
(2) CONTRIBUTIONS BY FEDERAL AGENCY.—Sec-
tion 3122 of such Code (relating to Federal service)
is amended by inserting after the first sentence the
following new sentence: ‘‘In the case of the taxes im-
posed by this chapter with respect to service per-
formed in the employ of an international organiza-
tion pursuant to a transfer to which the provisions of
section 3121(y) are applicable, the determination of
the amount of remuneration for such service, and the
103
return and payment of the taxes imposed by this
chapter, shall be made by the head of the Federal
agency from which the transfer was made.’’
(3) COLLECTION
OF
EMPLOYEE
CONTRIBU-
TIONS.—Section 3102 of such Code (relating to deduc-
tion of tax from wages) is amended by adding at the
end the following new subsection:
‘‘(e) SPECIAL RULE
FOR CERTAIN TRANSFERRED
FEDERAL EMPLOYEES.—In the case of any payments of
wages for service performed in the employ of an inter-
national organization pursuant to a transfer to which the
provisions of section 3121(y) are applicable—
‘‘(1) subsection (a) shall not apply,
‘‘(2) the head of the Federal agency from which
the transfer was made shall separately include on the
statement required under section 6051—
‘‘(A) the amount determined to be the
amount of the wages for such service, and
‘‘(B) the amount of the tax imposed by sec-
tion 3101 on such payments, and
‘‘(3) the tax imposed by section 3101 on such
payments shall be paid by the employee.’’
(4) EXCLUSION FROM TREATMENT AS TRADE OR
BUSINESS.—Paragraph (2)(C) of section 1402(c) of
such Code (defining trade or business) is amended by
104
adding at the end the following: ‘‘except service which
constitutes ‘employment’ under section 3121(y),’’.
(5) CONFORMING AMENDMENT.—Paragraph (15)
of section 3121(b) of such Code is amended by insert-
ing ‘‘, except service which constitutes ‘employment’
under subsection (y)’’ after ‘‘organization’’.
(b) AMENDMENTS TO THE SOCIAL SECURITY ACT.—
(1) IN GENERAL.—Section 210 of the Social Se-
curity Act (42 U.S.C. 410) is amended by adding at
the end the following new subsection:
‘‘SERVICE IN THE EMPLOY OF INTERNATIONAL ORGANIZA-
TIONS BY CERTAIN TRANSFERRED FEDERAL EMPLOY-
EES
‘‘(r)(1) For purposes of this title, service performed in
the employ of an international organization by an individ-
ual pursuant to a transfer of such individual to such inter-
national organization pursuant to section 3582 of title 5,
United States Code, shall constitute ‘employment’ if—
‘‘(A) immediately before such transfer, such indi-
vidual performed service with a Federal agency which
constituted ‘employment’ as defined in subsection (a),
and
‘‘(B) such individual would be entitled, upon
separation from such international organization and
proper application, to reemployment with such Fed-
eral agency under such section 3582.
105
‘‘(2) For purposes of this subsection:
‘‘(A) The term ‘Federal agency’ means an agen-
cy, as defined in section 3581(1) of title 5, United
States Code.
‘‘(B) The term ‘international organization’ has
the meaning provided such term by section 3581(3) of
title 5, United States Code.’’
(2) EXCLUSION FROM TREATMENT AS TRADE OR
BUSINESS.—Section 211(c)(2)(C) of such Act (42
U.S.C. 411(c)(2)(C)) is amended by inserting before
the semicolon the following ‘‘, except service which
constitutes ‘employment’ under section 210(r)’’.
(3) 
CONFORMING
AMENDMENT.—Section
210(a)(15) of such Act (42 U.S.C. 410(a)(15)) is
amended by inserting ‘‘, except service which con-
stitutes ‘employment’ under subsection (r)’’ before the
semicolon.
(c) EFFECTIVE DATE.—The amendments made by this
section shall apply with respect to service performed after
the calendar quarter following the calendar quarter in
which the date of the enactment of this Act occurs.
106
SEC. 221. EXTEND 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.
(a) AMENDMENTS TO THE INTERNAL REVENUE CODE
OF 1986.—
(1) The following provisions of the Internal Rev-
enue Code of 1986 are each amended by striking ‘‘(J),
or (M)’’ each place it appears and inserting ‘‘(J),
(M), or (Q)’’:
(A) Section 871(c).
(B) Section 1441(b).
(C) Section 3121(b)(19).
(D) Section 3231(e)(1).
(E) Section 3306(c)(19).
(2) Paragraph (3) of section 872(b) of such Code
is amended by striking ‘‘(F) or (J)’’ and inserting
‘‘(F), (J), or (Q)’’.
(3) Paragraph (5) of section 7701(b) of such
Code is amended by striking ‘‘subparagraph (J)’’ in
subparagraphs (C)(i) and (D)(i)(II) and inserting
‘‘subparagraph (J) or (Q)’’.
(b) AMENDMENT TO SOCIAL SECURITY ACT.—Para-
graph (19) of section 210(a) of the Social Security Act is
107
amended by striking ‘‘(J), or (M)’’ each place it appears
and inserting ‘‘(J), (M), or (Q)’’.
(c) EFFECTIVE DATE.—The amendments made by this
subsection shall take effect with the calendar quarter follow-
ing the date of the enactment of this Act.
SEC. 222. STUDY OF RISING COSTS OF DISABILITY INSUR-
ANCE BENEFITS.
(a) IN GENERAL.—As soon as practicable after the
date of the enactment of this Act, the Secretary of Health
and Human Services shall conduct a comprehensive study
of the reasons for rising costs payable from the Federal Dis-
ability Insurance Trust Fund.
(b) MATTERS TO BE INCLUDED IN STUDY.—In con-
ducting the study under this section, the Secretary shall—
(1) determine the relative importance of the fol-
lowing factors in increasing the costs payable from
the Trust Fund:
(A) increased numbers of applications for
benefits;
(B) higher rates of benefit allowances; and
(C) decreased rates of benefit terminations;
and
(2) identify, to the extent possible, underlying so-
cial, economic, demographic, programmatic, and
108
other trends responsible for changes in disability bene-
fit applications, allowances, and terminations.
(c) REPORT.—Not later than December 31, 1994, the
Secretary shall transmit a report to the Committee on Ways
and Means of the House of Representatives and the Commit-
tee on Finance of the Senate setting forth the results of the
study conducted under this section, together with any rec-
ommendations for legislative changes which the Secretary
determines appropriate.
SEC. 223. 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 re-
ferred 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 disabil-
ity in children,
(ii) the study of congenital, genetic, or
perinatal disorders in children, or
109
(iii) the measurement of developmental
milestones and developmental deficits in chil-
dren; and
(B) recognized experts in the fields of—
(i) psychology,
(ii) education and rehabilitation,
(iii) law,
(iv) the administration of disability pro-
grams,
(v) social insurance (including health insur-
ance), and
(vi) other fields of expertise that the Sec-
retary 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 Commis-
sion.
(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
110
in an appointive or elective position in the Federal Govern-
ment 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 oth-
erwise 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, including 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 disability to provide such technical assistance
as may be necessary to carry out the functions of the Com-
mission. The Secretary shall make available to the Commis-
sion 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 conduct a study, in consultation with the National
111
Academy of Sciences, of the effects of the definition of ‘‘dis-
ability’’ 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 determining 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 appro-
priately be met through expansion of Federal health
assistance programs (including the program of medi-
cal assistance under title XIX of such Act);
(B) the feasibility of providing benefits to chil-
dren through noncash means, including but not lim-
ited to vouchers, debit cards, and electronic benefit
transfer systems;
(C) the extent to which the Social Security Ad-
ministration can involve private organizations in an
112
effort to increae the provision of social services, edu-
cation, and vocational instruction with the aim of
promoting independence and the ability to engage in
substantial gainful activity;
(D) the feasibility of providing retroactive sup-
plemental security income benefits pursuant to the de-
cision in Sullivan v. Zebley, 110 S. Ct. 2658 (1990),
on a prorated basis or by means of a packaged trust;
(E) methods to increase the extent to which bene-
fits are used in the effort to assist the child achieve
independence and engage in substantial gainful activ-
ity; and
(F) such other issues that the Secretary deter-
mines to be appropriate.
(f) REPORT.—Not later than November 30, 1995, the
Commission shall prepare a report and submit such report
to the Committee on Ways and Means of the House of Rep-
resentatives 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 appropriate.
113
SEC. 224. DISREGARD DEEMED INCOME AND RESOURCES
OF INELIGIBLE SPOUSE IN DETERMINING
CONTINUED ELIGIBILITY UNDER SECTION
1619(b).
(a) IN GENERAL.—Section 1619(b)(2) of the Social Se-
curity Act (42 U.S.C. 1382h(b)(2)) is amended by adding
at the end the following:
‘‘(C)(i)(I) For purposes of paragraph (1), in determin-
ing the earnings of an individual whose spouse is not an
eligible individual, there shall be disregarded the net income
of the spouse to the extent such net income does not exceed
an amount equal to twice the threshold amount determined
for the individual.
‘‘(II) As used in subclause (I), the term ‘threshold
amount’ means, with respect to an individual—
‘‘(aa) $85, plus twice the amount of benefits pay-
able under this title (including federally administered
State supplementary payments) to an individual who
is living in his or her own household and who has no
other income, plus the average amount expended per
individual, under the State plan approved under title
XIX by the State in which the individual resides, on
individuals who are recipients of benefits under this
title by reason of disability; or
‘‘(bb) if the gross earnings of the individual ex-
ceeds the amount described in item (aa), the amount
114
that would be sufficient to allow the individual to
provide for himself or herself a reasonable equivalent
of benefits and services described in paragraph
(1)(D).
‘‘(ii) For purposes of paragraph (1)(A), in determin-
ing the resources of an individual whose spouse is not an
eligible individual, there shall be disregarded the resources
of the spouse to the extent the amount of such resources does
not exceed the community spouse resource allowance (as de-
fined in section 1924(f)(2)) of the State in which the indi-
vidual resides.’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on October 1, 1995.
SEC. 225. PLANS FOR ACHIEVING SELF-SUPPORT NOT DIS-
APPROVED WITHIN 60 DAYS TO BE DEEMED
APPROVED.
(a) AMENDMENTS TO INCOME EXCLUSION RULES.—
Section 1612(b)(4) of the Social Security Act (42 U.S.C.
1382a(b)(4)(A)) is amended in each of subparagraphs (A)
and (B) by inserting ‘‘and, for purposes of this clause, a
completed plan for achieving self-support which is not dis-
approved by the Board within 60 days after the date of
submission shall be deemed to be approved by the Board
until subsequently disapproved by the Board (with appro-
priate notification to the individual),’’ after ‘‘plan,’’.
115
(b) AMENDMENT TO RESOURCE EXCLUSION RULE.—
Section 1613(a)(4) of such Act (42 U.S.C. 1382b(a)(4)) is
amended by inserting ‘‘, and, for purposes of this para-
graph, a completed plan for achieving self-support which
is not disapproved by the Board within 60 days after the
date of submission shall be deemed to be approved by the
Board until 6 months after subsequently disapproved by the
Board (with appropriate notification to the individual)’’
after ‘‘such plan’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall take effect on January 1, 1995.
SEC. 226. TEMPORARY AUTHORITY TO APPROVE A LIMITED
NUMBER OF PLANS FOR ACHIEVING SELF-
SUPPORT THAT INCLUDE HOUSING GOALS.
(a) IN GENERAL.—During the 42-month period that
begins on January 1, 1995, the Board may, under title XVI
of the Social Security Act, approve not more than 20 per-
cent of the plans for achieving self-support that include a
housing goal.
(b) REPORT.—Within 12 months after the end of the
5-year period that begins on January 1, 1995, the Board
shall submit to the Congress a report on the activities under
subsection (a).
116
SEC. 227. 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 Board shall establish by regulation time lim-
its and other criteria related to individuals’ plans for
achieving self-support, that take into account the difficulty
of achieving self-support based on the needs of individuals
and the goals of the plan.’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on January 1, 1995.
SEC. 228. TREATMENT OF CERTAIN GRANT, SCHOLARSHIP,
OR FELLOWSHIP INCOME AS EARNED INCOME
FOR SSI PURPOSES.
(a) IN GENERAL.—Section 1612(a)(1) of the Social Se-
curity Act (42 U.S.C. 1382a(a)(1)) is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (D); and
(2) by adding at the end the following:
‘‘(F) any grant, scholarship, or fellowship.’’.
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall apply to eligibility and benefit determina-
tions for any month that begins after the 2nd month after
the month in which this Act is enacted.
117
SEC. 229. SSI ELIGIBILITY FOR STUDENTS TEMPORARILY
ABROAD.
(a) IN GENERAL.—Section 1611(f) of the Social Secu-
rity 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 follow-
ing:
‘‘(2) 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
Board that the absence of the individual from the
United States is—
‘‘(i) temporary; and
‘‘(ii) for the purpose of conducting studies
as part of an educational program that is de-
signed to prepare the individual for gainful em-
ployment, and is sponsored by a school, college,
or university in the United States.’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on January 1, 1995.
118
SEC. 230. DISREGARD OF COST-OF-LIVING INCREASES FOR
CONTINUED ELIGIBILITY FOR WORK INCEN-
TIVES.
(a) IN GENERAL.—Section 1619(b)(1)(B) of the Social
Security Act (42 U.S.C. 1382h(b)(1)(B)) is amended by in-
serting ‘‘and increases pursuant to section 215(i) in the
level of monthly insurance benefits to which the individual
is entitled under title II that occur while such individual
is considered to be receiving supplemental security income
benefits by reason of this subsection’’ after ‘‘earnings’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply to eligibility determinations for
months after December 1994.
SEC. 231. EXPANSION OF THE AUTHORITY OF THE SOCIAL
SECURITY ADMINISTRATION TO PREVENT,
DETECT, 
AND 
TERMINATE 
FRAUDULENT
CLAIMS FOR SSI BENEFITS.
(a) PREVENTION OF FRAUD IN THE SSI PROGRAM BY
TRANSLATORS OF FOREIGN LANGUAGES.—
(1) IN GENERAL.—Section 1631(e) of the Social
Security Act (42 U.S.C. 1383(e)) is amended by in-
serting after paragraph (3) the following:
‘‘(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 re-
119
garded as reliable unless the third party, under penalty of
perjury—
‘‘(A) certifies that the translation is accurate;
and
‘‘(B) discloses the nature and scope of the rela-
tionship between the third party and the applicant or
recipient, as the case may be.’’.
(2) EFFECTIVE DATE.—The amendment made by
paragraph (1) shall take effect on October 1, 1994.
(b) CIVIL MONETARY PENALTIES, ASSESSMENTS, AND
EXCLUSIONS FOR TITLE XVI.—
(1) IN GENERAL.—Title XI of the Social Secu-
rity Act (42 U.S.C. 1301–1320b–14) is amended by
inserting after section 1128B the following:
‘‘SEC. 1129. CIVIL MONETARY PENALTIES AND ASSESS-
MENTS FOR TITLE XVI.
‘‘(a) Any person (including an organization, agency,
or other entity) who makes, or causes to be made, a state-
ment or representation of a material fact for use in deter-
mining any initial or continuing right to benefits or pay-
ments under title XVI that the person knows or should know
is false or misleading or knows or should know omits a ma-
terial fact shall be subject to, in addition to any other pen-
alties that may be prescribed by law, a civil money penalty
of not more than $5,000 for each such statement or represen-
120
tation. 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 Board may
make a determination in the same proceeding to exclude
the person 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 pro-
gram.
‘‘(b)(1) The Board may initiate a proceeding to deter-
mine whether to impose a civil money penalty, assessment,
or exclusion under subsection (a) only as authorized by the
Attorney General pursuant to procedures agreed upon by
the Board and the Attorney General. The Board 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 Board may initi-
ate 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 Board shall not make a determination ad-
verse to any person under this section until the person has
been given written notice and an opportunity for the deter-
mination to be made on the record after a hearing at which
121
the person is entitled to be represented by counsel, to present
witnesses, and to cross-examine 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 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.
‘‘(4) The official conducting a hearing under this sec-
tion may sanction a person, including any party or attor-
ney, for failing to comply with an order or procedure, fail-
ing to defend an action, or other misconduct as would inter-
fere with the speedy, orderly, or fair conduct of the hearing.
Such sanction shall reasonably relate to the severity and
nature of the failure or misconduct. Such sanction may in-
clude—
‘‘(A) in the case of refusal to provide or permit
discovery, drawing negative factual inference or treat-
ing such refusal as an admission by deeming the mat-
ter, or certain facts, to be established;
122
‘‘(B) prohibiting a party from introducing cer-
tain 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 attor-
neys’ fees and other costs caused by the failure or mis-
conduct; and
‘‘(H) refusing to consider any motion or other
action which is not filed in a timely manner.
‘‘(c) In determining the amount or scope of any pen-
alty, assessment, or exclusion imposed pursuant to this sec-
tion, the Board shall take into account—
‘‘(1) the nature of the statements and representa-
tions referred to in subsection (a) and the cir-
cumstances under which they occurred;
‘‘(2) the degree of culpability, history of prior of-
fenses, and financial condition of the person commit-
ting the offense; and
‘‘(3) such other matters as justice may require.
‘‘(d)(1) Any person adversely affected by a determina-
tion of the Board under this section may obtain a review
of such determination in the United States Court of Appeals
123
for the circuit in which the person resides, or in which the
statement or representation referred to in subsection (a) was
made, by filing in such court (within 60 days following
the date the person is notified of the Board’s determination)
a written petition requesting that the determination be
modified or set aside. A copy of the petition shall be forth-
with transmitted by the clerk of the court to the Board, and
thereupon the Board shall file in the court the record in
the proceeding as provided in section 2112 of title 28, Unit-
ed States Code. Upon such filing, the court shall have juris-
diction 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 affirming, modifying, remanding for further
consideration, or setting aside, in whole or in part, the de-
termination of the Board and enforcing the same to the ex-
tent that such order is affirmed or modified. No objection
that has not been urged before the Board shall be considered
by the court, unless the failure or neglect to urge such objec-
tion shall be excused because of extraordinary cir-
cumstances.
‘‘(2) The findings of the Board with respect to ques-
tions of fact, if supported by substantial evidence on the
record considered as a whole, shall be conclusive in the re-
view described in paragraph (1). If any party shall apply
124
to the court for leave to adduce additional evidence and
shall show to the satisfaction of the court that such addi-
tional evidence is material and that there were reasonable
grounds for the failure to adduce such evidence in the hear-
ing before the Board, the court may order such additional
evidence to be taken before the Board and to be made a
part of the record. The Board may modify its findings as
to the facts, or make new findings, by reason of additional
evidence so taken and filed, and the Board 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 conclu-
sive, and his recommendations, if any, for the modification
or setting aside of his original order.
‘‘(3) Upon the filing of the record with the Board’s
original or modified order, the jurisdiction of the court shall
be exclusive and its judgment and decree shall be final, ex-
cept 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 Board and
may be recovered—
‘‘(A) in a civil action in the name of the United
States brought in United States district court for the
125
district where the statement or representation referred
to in subsection (a) was made, or where the person
resides, as determined by the Board;
‘‘(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) by decrease of any payment under title XVI
to which the person is entitled, notwithstanding sec-
tion 207 of this Act, as made applicable to this title
by reason of section 1631(d)(1);
‘‘(D) by authorities provided under the Debt Col-
lection Act of 1982, as amended, to the extent appli-
cable to debts arising under the Social Security Act;
‘‘(E) by deduction of the amount of such penalty
or assessment, 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 as-
sessed; or
‘‘(F) by any combination of the foregoing.
‘‘(f) A determination by the Board to impose a pen-
alty, assessment, or exclusion under this section shall be
final upon the expiration of the 60-day period referred to
in subsection (d). Matters that were raised or that could
126
have been raised in a hearing before the Board 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 and assessment imposed under this section.
‘‘(g) Whenever the Board’s determination to impose a
penalty, assessment, or exclusion under this section with re-
spect to a medical provider or physician becomes final, the
provisions of section 1128A(h) shall apply.
‘‘(h) Whenever the Board 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 mone-
tary penalty under this section, the Board may bring an
action in an appropriate 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 conceal-
ing, 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 sec-
tion 205 shall apply with respect to this section to the same
extent as they are applicable with respect to title II. The
Board may delegate the authority granted by section 205(d)
(as made applicable to this section) to the Inspector General
127
of the Department of Health and Human Services for pur-
poses of any investigation under this section.
‘‘(2) The Board may delegate authority granted under
this section to the Inspector General of the Social Security
Administration.
‘‘(j) For purposes of this section, the term ‘State agen-
cy’ shall have the same meaning as in section 1128A(i)(1).
‘‘(k) A principal is liable for penalties, assessments,
and exclusions under this section for the actions of the prin-
cipal’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 sec-
tion 1128B’’ and inserting ‘‘, section 1128B, or
section 1129’’;
(B) in subsection (b)(8)(B)(ii), by inserting
‘‘and section 1129’’ after ‘‘section 1128A’’;
(C) in subsection (c)(1), by striking ‘‘or
under section 1128A’’ and inserting ‘‘, section
1128A, or section 1129’’;
(D) in subsection (c)(3)(A), by inserting ‘‘or
section 1129’’ after ‘‘section 1128A’’;
(E) in subsection (d)(1), by striking ‘‘and
section 1128A’’ and inserting ‘‘, section 1128A,
and section 1129’’;
128
(F) in subsection (d)(2)(A), by striking ‘‘or
section 1128A’’ and inserting ‘‘, section 1128A,
or section 1129’’;
(G) in subsection (e)(1), by striking ‘‘or sec-
tion 1128A’’ and inserting ‘‘, section 1128A, or
section 1129’’;
(H) in subsection (f)(3), by inserting ‘‘,
1129,’’ after ‘‘sections 1128A’’;
(I) in subsection (g)(1), by striking ‘‘or sec-
tion 1128A’’ each place such term appears and
inserting ‘‘, section 1128A, or section 1129’’;
(J) in subsection (g)(2)(A), by inserting
‘‘and section 1129(a)’’ after ‘‘section 1128A(a)’’;
and
(K) in subsection (h), by striking ‘‘1128A
and 1128B’’ and inserting ‘‘1128A, 1128B, and
1129’’.
(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.’’.
129
(2) CONFORMING AMENDMENT.—Section 1632(b)
of such Act (42 U.S.C. 1383a(b)) is amended to read
as follows:
‘‘(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 payee under section 1631(a)(2) on behalf of another indi-
vidual (other than the person’s eligible spouse), and the vio-
lation includes a willful misuse of funds by the person or
entity, the court may also require that full or partial res-
titution 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 payee under section 1631(a)(2).’’.
(d) AUTHORITY
TO REDETERMINE ELIGIBILITY
IN
DISABILITY CASES IF FRAUD IS INVOLVED, AND TO TERMI-
NATE BENEFITS IF THERE IS INSUFFICIENT RELIABLE
EVIDENCE OF DISABILITY.—
(1) IN GENERAL.—Section 1631(e) of the Social
Security Act (42 U.S.C. 1383(e)) is amended by add-
ing at the end the following:
‘‘(6)(A) The Board shall immediately redetermine the
eligibility of an individual for benefits under this title by
reason of disability, disregarding any unreliable evidence
of disability, if there is reason to believe that fraud was
involved in the application of the individual for such bene-
130
fits, 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 substan-
tial risk that redetermining such eligibility would jeopard-
ize the criminal prosecution of any person who is a subject
of the investigation from which the information is derived.
‘‘(B) If, after redetermining the eligibility of an indi-
vidual for benefits under this title by reason of disability,
the Board determines that there is insufficient reliable evi-
dence of disability, the Board may terminate such eligi-
bility.’’.
(2) EFFECTIVE DATE.—The amendment made by
paragraph (1) shall take effect on October 1, 1994,
and shall apply to eligibility determinations made be-
fore, on, or after such date.
(e) AVAILABILITY OF RECIPIENT IDENTIFYING INFOR-
MATION FROM THE INSPECTOR GENERAL, SOCIAL SECU-
RITY ADMINISTRATION.—
(1) IN GENERAL.—Section 1631(e) of the Social
Security Act (42 U.S.C. 1383(e)), as amended by sub-
section (d) of this section, is amended by adding at
the end the following:
‘‘(7) As soon as the Inspector General, Social Security
Administration, has reason to believe that fraud was in-
volved in the application of a recipient for benefits under
131
this title, the Inspector General shall make available to the
Board information identifying the recipient, unless a Unit-
ed States attorney, or equivalent State prosecutor, with ju-
risdiction over potential or actual related criminal cases,
certifies, in writing, that there is a substantial risk that
making the information so available or redetermining the
eligibility of the recipient for such benefits 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 IM-
MIGRANT AND REFUGEE MEDICAL INFORMATION.—
(1) IN GENERAL.—Section 1631(e) of the Social
Security Act (42 U.S.C. 1383(e)), as amended by the
preceding provisions of this Act, is amended by add-
ing at the end the following:
‘‘(8) The Board shall request the Immigration and
Naturalization Service and the Centers for Disease Control
to provide the Board with whatever medical information
either such entity has with respect to any alien who has
applied for benefits under this title to the extent that the
information is relevant to any determination relating to
such eligibility.’’.
132
(2) EFFECTIVE DATE.—The amendment made by
paragraph (1) shall take effect on October 1, 1994.
(g) ANNUAL REPORTS ON REVIEWS OF SSI CASES.—
The Board shall annually submit to the Committee on Ways
and Means of the House of Representatives and the Commit-
tee on Finance of the Senate a report on the exent to which
the Board has exercised its authority to review supple-
mental security income cases under title XVI of the Social
Security Act, and the extent to which the cases reviewed
were those that involved a high likelihood or probability of
fraud.
SEC. 232. DISABILITY REVIEW REQUIRED FOR SSI RECIPI-
ENTS WHO ARE 18 YEARS OF AGE.
(a) IN GENERAL.—Section 1614(a)(3)(G) of the Social
Security Act (42 U.S.C. 1382c(a)(3)(G)) is amended—
(1) by inserting ‘‘(i)’’ after ‘‘(G)’’; and
(2) by adding after and below the end the follow-
ing:
‘‘(ii)(I) During the 1-year period that begins on the
date a recipient of benefits under this title by reason of dis-
ability attains 18 years of age, the applicable State agency
or the Board (as may be appropriate) shall redetermine the
eligibility of the recipient for such benefits by reason of dis-
ability, by applying the criteria used in determining eligi-
133
bility for such benefits of applicants who have attained 18
years of age.
‘‘(II) A review under subclause (I) of this clause shall
be considered a substitute for a review required under clause
(i).’’.
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall apply to individuals who attain 18 years
of age in or after the 9th month after the month in which
this Act is enacted.
SEC. 233. CONTINUING DISABILITY REVIEWS.
(a) IN GENERAL.—Section 1614(a)(3)(G) of such Act
(42 U.S.C. 1382c(a)(3)(G)) is amended by inserting
‘‘221(i),’’ after ‘‘221(h),’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (A) shall take effect on October 1, 1995.
SEC. 234. TECHNICAL AND CLERICAL AMENDMENTS.
(a) AMENDMENTS TO TITLE II OF THE SOCIAL SECU-
RITY ACT.—
(1) Section 201(a) of the Social Security Act (42
U.S.C. 401(a)) is amended, in the matter following
clause (4), by striking ‘‘and and’’ and inserting
‘‘and’’.
(2) Section 202(d)(8)(D)(ii) of such Act (42
U.S.C. 402(d)(8)(D)(ii)) is amended by adding a pe-
riod at the end and by adjusting the left hand
134
margination thereof so as to align with section
202(d)(8)(D)(i) of such Act.
(3) Section 202(q)(1)(A) of such Act (42 U.S.C.
402(q)(1)(A)) is amended by striking the dash at the
end.
(4) Section 202(q)(9) of such Act (42 U.S.C.
402(q)(9)) is amended, in the matter preceding sub-
paragraph (A), by striking ‘‘parargaph’’ and insert-
ing ‘‘paragraph’’.
(5) Section 202(t)(4)(D) of such Act (42 U.S.C.
402(t)(4)(D)) is amended by inserting ‘‘if the’’ before
‘‘Secretary’’ the second and third places it appears.
(6) Clauses (i) and (ii) of section 203(f)(5)(C) of
such Act (42 U.S.C. 403(f)(5)(C)) are amended by ad-
justing the left-hand margination thereof so as to
align with clauses (i) and (ii) of section 203(f)(5)(B)
of such Act.
(7) Paragraph (3)(A) and paragraph (3)(B) of
section 205(b) of such Act (42 U.S.C. 405(b)) are
amended by adjusting the left-hand margination
thereof so as to align with the matter following section
205(b)(2)(C) of such Act.
(8) Section 205(c)(2)(B)(iii) of such Act (42
U.S.C. 405(c)(2)(B)(iii)) is amended by striking
‘‘non-public’’ and inserting ‘‘nonpublic’’.
135
(9) Section 205(c)(2)(C) of such Act (42 U.S.C.
405(c)(2)(C)) is amended—
(A) by striking the clause (vii) added by
section 2201(c) of Public Law 101–624;
(B) by redesignating the clause (iii) added
by section 2201(b)(3) of Public Law 101–624,
clause (iv), clause (v), clause (vi), and the clause
(vii) added by section 1735(b) of Public Law
101–624 as clause (iv), clause (v), clause (vi),
clause (vii), and clause (viii), respectively;
(C) in clause (v) (as redesignated), by strik-
ing 
‘‘subclause 
(I) 
of’’, 
and 
by 
striking
‘‘subclause (II) of clause (i)’’ and inserting
‘‘clause (ii)’’; and
(D) in clause (viii)(IV) (as redesignated),
by inserting ‘‘a social security account number
or’’ before ‘‘a request for’’.
(10) The heading for section 205(j) of such Act
(42 U.S.C. 405(j)) is amended to read as follows:
‘‘Representative Payees’’.
(11) The heading for section 205(s) of such Act
(42 U.S.C. 405(s)) is amended to read as follows:
136
‘‘Notice Requirements’’.
(12) Section 208(c) of such Act (42 U.S.C.
408(c)) is amended by striking ‘‘subsection (g)’’ and
inserting ‘‘subsection (a)(7)’’.
(13) Section 210(a)(5)(B)(i)(V) of such Act (42
U.S.C. 410(a)(5)(B)(i)(V)) is amended by striking
‘‘section 105(e)(2)’’ and inserting ‘‘section 104(e)(2)’’.
(14) Section 211(a) of such Act (42 U.S.C.
411(a)) is amended—
(A) in paragraph (13), by striking ‘‘and’’
at the end; and
(B) in paragraph (14), by striking the pe-
riod and inserting ‘‘; and’’.
(15) Section 213(c) of such Act (42 U.S.C.
413(c)) is amended by striking ‘‘section’’ the first
place it appears and inserting ‘‘sections’’.
(16) Section 215(a)(5)(B)(i) of such Act (42
U.S.C. 415(a)(5)(B)(i)) is amended by striking ‘‘sub-
section’’ the second place it appears and inserting
‘‘subsections’’.
(17) Section 215(f)(7) of such Act (42 U.S.C.
415(f)(7)) is amended by inserting a period after
‘‘1990’’.
(18) Subparagraph (F) of section 218(c)(6) of
such Act (42 U.S.C. 418(c)(6)) is amended by adjust-
137
ing the left-hand margination thereof so as to align
with section 218(c)(6)(E) of such Act.
(19) Section 223(i) of such Act (42 U.S.C.
423(i)) is amended by adding at the beginning the
following heading:
‘‘Limitation on Payments to Prisoners’’.
(b) RELATED AMENDMENTS.—
(1) Section 603(b)(5)(A) of Public Law 101–649
(amending section 202(n)(1) of the Social Security
Act) (104 Stat. 5085) is amended by inserting
‘‘under’’ before ‘‘paragraph (1),’’ and by striking
‘‘(17), or (18)’’ and inserting ‘‘(17), (18), or (19)’’, ef-
fective as if this paragraph were included in such sec-
tion 603(b)(5)(A).
(2) Section 10208(b)(1) of Public Law 101–239
(amending section 230(b)(2)(A) of the Social Security
Act) (103 Stat. 2477) is amended by striking
‘‘230(b)(2)(A)’’ and ‘‘430(b)(2)(A)’’ and inserting
‘‘230(b)(2)’’ and ‘‘430(b)(2)’’, respectively, effective as
if this paragraph were included in such section
10208(b)(1).
(c) CONFORMING, CLERICAL AMENDMENTS UPDATING,
WITHOUT SUBSTANTIVE CHANGE, REFERENCES IN TITLE
II OF THE SOCIAL SECURITY ACT TO THE INTERNAL REVE-
NUE CODE.—
138
(1)(A)(i) Section 201(g)(1) of such Act (42
U.S.C. 401(g)(1)) is amended—
(I) in subparagraph (A)(i), by striking
‘‘and subchapter E’’ and all that follows through
‘‘1954’’ and inserting ‘‘and chapters 2 and 21 of
the Internal Revenue Code of 1986’’;
(II) in subparagraph (A)(ii), by striking
‘‘1954’’ and inserting ‘‘1986’’;
(III) in the matter in subparagraph (A) fol-
lowing clause (ii), by striking ‘‘subchapter E’’
and all that follows through ‘‘1954.’’ and insert-
ing ‘‘chapters 2 and 21 of the Internal Revenue
Code of 1986.’’, and by striking ‘‘1954 other’’
and inserting ‘‘1986 other’’; and
(IV) in subparagraph (B), by striking
‘‘1954’’ each place it appears and inserting
‘‘1986’’.
(ii) The amendments made by clause (i) shall
apply only with respect to periods beginning on or
after the date of the enactment of this Act.
(B)(i) Section 201(g)(2) of such Act (42 U.S.C.
401(g)(2)) is amended by striking ‘‘section 3101(a)’’
and all that follows through ‘‘1950.’’ and inserting
‘‘section 3101(a) of the Internal Revenue Code of 1986
which are subject to refund under section 6413(c) of
139
such Code with respect to wages (as defined in section
3121 of such Code).’’, and by striking ‘‘wages re-
ported’’ and all that follows through ‘‘1954,’’ and in-
serting ‘‘wages reported to the Secretary of the Treas-
ury or his delegate pursuant to subtitle F of such
Code,’’.
(ii) The amendments made by clause (i) shall
apply only with respect to wages paid on or after
January 1, 1995.
(C) Section 201(g)(4) of such Act (42 U.S.C.
401(g)(4)) is amended—
(i) by striking ‘‘The Board of Trustees shall
prescribe before January 1, 1981, the method’’
and inserting ‘‘If at any time or times the
Boards of Trustees of such Trust Funds deem
such action advisable, they may modify the
method prescribed by such Boards’’;
(ii) by striking ‘‘1954’’ and inserting
‘‘1986’’; and
(iii) by striking the last sentence.
(2) Section 202(v) of such Act (42 U.S.C. 402(v))
is amended—
(A) in paragraph (1), by striking ‘‘1954’’
and inserting ‘‘1986’’; and
140
(B) in paragraph (3)(A), by inserting ‘‘of
the Internal Revenue Code of 1986’’ after
‘‘3127’’.
(3) Section 205(c)(5)(F)(i) of such Act (42
U.S.C. 405(c)(5)(F)(i)) is amended by inserting ‘‘or
the Internal Revenue Code of 1986’’ after ‘‘1954’’.
(4)(A) Section 209(a)(4)(A) of such Act (42
U.S.C. 409(a)(4)(A)) is amended by inserting ‘‘or the
Internal Revenue Code of 1986’’ after ‘‘Internal Reve-
nue Code of 1954’’.
(B) Section 209(a) of such Act (42 U.S.C.
409(a)) is amended—
(i) in subparagraphs (C) and (E) of para-
graph (4),
(ii) in paragraph (5)(A),
(iii) in subparagraphs (A) and (B) of para-
graph (14),
(iv) in paragraph (15),
(v) in paragraph (16), and
(vi) in paragraph (17),
by striking ‘‘1954’’ each place it appears and insert-
ing ‘‘1986’’.
(C) Subsections (b), (f), (g), (i)(1), and (j) of sec-
tion 209 of such Act (42 U.S.C. 409) are amended by
141
striking ‘‘1954’’ each place it appears and inserting
‘‘1986’’.
(5) Section 211(a)(15) of such Act (42 U.S.C.
411(a)(15)) is amended by inserting ‘‘of the Internal
Revenue Code of 1986’’ after ‘‘section 162(m)’’.
(6) Title II of such Act is further amended—
(A) in subsections (f)(5)(B)(ii) and (k) of
section 203 (42 U.S.C. 403),
(B) in section 205(c)(1)(D)(i) (42 U.S.C.
405(c)(1)(D)(i)),
(C) in the matter in section 210(a) (42
U.S.C. 410(a)) preceding paragraph (1) and in
paragraphs (8), (9), and (10) of section 210(a),
(D) in subsections (p)(4) and (q) of section
210 (42 U.S.C. 410),
(E) in the matter in section 211(a) (42
U.S.C. 411(a)) preceding paragraph (1) and in
paragraphs (3), (4), (6), (10), (11), and (12) and
clauses (iii) and (iv) of section 211(a),
(F) in the matter in section 211(c) (42
U.S.C. 411(c)) preceding paragraph (1), in
paragraphs (3) and (6) of section 211(c), and in
the matter following paragraph (6) of section
211(c),
142
(G) in subsections (d), (e), and (h)(1)(B) of
section 211 (42 U.S.C. 411),
(H) in section 216(j) (42 U.S.C. 416(j)),
(I) 
in 
section 
218(e)(3) 
(42 
U.S.C.
418(e)(3)),
(J) in section 229(b) (42 U.S.C. 429(b)),
(K) in section 230(c) (42 U.S.C. 430(c)),
and
(L) in section 232 (42 U.S.C. 432),
by striking ‘‘1954’’ each place it appears and insert-
ing ‘‘1986’’.
(d) RULES OF CONSTRUCTION.—
(1) The preceding provisions of this section shall
be construed only as technical and clerical corrections
and as reflecting the original intent of the provisions
amended thereby.
(2) Any reference in title II of the Social Secu-
rity Act to the Internal Revenue Code of 1986 shall
be construed to include a reference to the Internal
Revenue Code of 1954 to the extent necessary to carry
out the provisions of paragraph (1).
(e) UTILIZATION OF NATIONAL AVERAGE WAGE INDEX
FOR WAGE-BASED ADJUSTMENTS.—
143
(1) DEFINITION
OF
NATIONAL
AVERAGE
WAGE
INDEX.—Section 209(k) of the Social Security Act (42
U.S.C. 409(k)) is amended—
(A) by redesignating paragraph (2) as
paragraph (3);
(B) in paragraph (3) (as redesignated), by
striking ‘‘paragraph (1)’’ and inserting ‘‘this
subsection’’; and
(C) by striking paragraph (1) and inserting
the following new paragraphs:
‘‘(k)(1) For purposes of sections 203(f)(8)(B)(ii),
213(d)(2)(B), 
215(a)(1)(B)(ii), 
215(a)(1)(C)(ii),
215(a)(1)(D), 
215(b)(3)(A)(ii), 
215(i)(1)(E),
215(i)(2)(C)(ii), 224(f)(2)(B), and 230(b)(2) (and 230(b)(2)
as in effect immediately prior to the enactment of the Social
Security Amendments of 1977), the term ‘national average
wage index’ for any particular calendar year means, subject
to regulations of the Secretary under paragraph (2), the av-
erage of the total wages for such particular calendar year.
‘‘(2) The Secretary shall prescribe regulations under
which the national average wage index for any calendar
year shall be computed—
‘‘(A) on the basis of amounts reported to the Sec-
retary of the Treasury or his delegate for such year,
144
‘‘(B) by disregarding the limitation on wages
specified in subsection (a)(1),
‘‘(C) with respect to calendar years after 1990,
by incorporating deferred compensation amounts and
factoring in for such years the rate of change from
year to year in such amounts, in a manner consistent
with the requirements of section 10208 of the Omni-
bus Budget Reconciliation Act of 1989, and
‘‘(D) with respect to calendar years before 1978,
in a manner consistent with the manner in which the
average of the total wages for each of such calendar
years was determined as provided by applicable law
as in effect for such years.’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 213(d)(2)(B) of such Act (42
U.S.C. 413(d)(2)(B)) is amended by striking
‘‘deemed average total wages’’ and inserting ‘‘na-
tional average wage index’’, and by striking ‘‘the
average of the total wages’’ and all that follows
and inserting ‘‘the national average wage index
(as so defined) for 1976,’’.
(B) Section 215(a)(1)(B)(ii) of such Act (42
U.S.C. 415(a)(1)(B)(ii)) is amended—
145
(i) in subclause (I), by striking
‘‘deemed average total wages’’ and inserting
‘‘national average wage index’’; and
(ii) in subclause (II), by striking ‘‘the
average of the total wages’’ and all that fol-
lows and inserting ‘‘the national average
wage index (as so defined) for 1977.’’.
(C) Section 215(a)(1)(C)(ii) of such Act (42
U.S.C. 415(a)(1)(C)(ii)) is amended by striking
‘‘deemed average total wages’’ and inserting ‘‘na-
tional average wage index’’.
(D) Section 215(a)(1)(D) of such Act (42
U.S.C. 415(a)(1)(D)) is amended—
(i) by striking ‘‘after 1978’’;
(ii) by striking ‘‘and the average of the
total wages (as described in subparagraph
(B)(ii)(I))’’ and inserting ‘‘and the national
average wage index (as defined in section
209(k)(1))’’; and
(iii) by striking the last sentence.
(E) Section 215(b)(3)(A)(ii) of such Act (42
U.S.C. 415(b)(3)(A)(ii)) is amended by striking
‘‘deemed average total wages’’ each place it ap-
pears and inserting ‘‘national average wage
index’’.
146
(F) Section 215(i)(1) of such Act (42 U.S.C.
415(i)(1)) is amended—
(i) in subparagraph (E), by striking
‘‘SSA average wage index’’ and inserting
‘‘national average wage index (as defined in
section 209(k)(1))’’; and
(ii) by striking subparagraph (G) and
redesignating subparagraph (H) as sub-
paragraph (G).
(G) Section 215(i)(2)(C)(ii) of such Act (42
U.S.C. 415(i)(1)(C)(ii)) is amended to read as
follows:
‘‘(ii) The Secretary shall determine and promulgate
the OASDI fund ratio for the current calendar year on or
before November 1 of the current calendar year, based upon
the most recent data then available. The Secretary shall in-
clude a statement of the fund ratio and the national average
wage index (as defined in section 209(k)(1)) and a state-
ment of the effect such ratio and the level of such index
may have upon benefit increases under this subsection in
any notification made under clause (i) and any determina-
tion published under subparagraph (D).’’.
(H) Section 224(f)(2) of such Act (42
U.S.C. 424a(f)(2)) is amended—
147
(i) in subparagraph (A), by adding
‘‘and’’ at the end;
(ii) by striking subparagraph (C); and
(iii) by striking subparagraph (B) and
inserting the following:
‘‘(B) the ratio of (i) the national average wage
index (as defined in section 209(k)(1)) for the cal-
endar year before the year in which such redetermina-
tion is made to (ii) the national average wage index
(as so defined) for the calendar year before the year
in which the reduction was first computed (but not
counting any reduction made in benefits for a pre-
vious period of disability).’’.
(f) TECHNICAL CORRECTIONS RELATED TO OASDI IN
THE OMNIBUS BUDGET RECONCILIATION ACT OF 1990.—
(1) AMENDMENTS RELATED TO PROVISIONS IN
SECTION 5103(b) RELATING TO DISABLED WIDOWS.—
Section 223(f)(2) of the Social Security Act (42
U.S.C. 423(f)(2)) is amended—
(A) in subparagraph (A), by striking ‘‘(in
a case to which clause (ii)(II) does not apply)’’;
and
(B) by striking subparagraph (B)(ii) and
inserting the following:
148
‘‘(ii) the individual is now able to en-
gage in substantial gainful activity; or’’.
(2) AMENDMENTS RELATED TO PROVISIONS IN
SECTION 5105(d) RELATING TO REPRESENTATIVE PAY-
EES.—
(A) 
TITLE
II
AMENDMENTS.—Section
5105(d)(1)(A) of the Omnibus Budget Reconcili-
ation Act of 1990 (Public Law 101–508) is
amended—
(i) by striking ‘‘Section 205(j)(5)’’ and
inserting ‘‘Section 205(j)(6)’’; and
(ii) by redesignating the paragraph (5)
as amended thereby as paragraph (6).
(B) 
TITLE
XVI
AMENDMENTS.—Section
1631(a)(2) of the Social Security Act (42 U.S.C.
1383(a)(2)) is amended—
(i) by redesignating subparagraphs (E)
and (F) as subparagraphs (F) and (G), re-
spectively; and
(ii) by inserting after subparagraph
(D) the following:
‘‘(E) RESTITUTION.—In cases where the negligent fail-
ure of the Secretary to investigate or monitor a representa-
tive payee results in misuse of benefits by the representative
payee, the Secretary shall make payment to the beneficiary
149
or the beneficiary’s representative payee of an amount equal
to such misused benefits. The Secretary shall make a good
faith effort to obtain restitution from the terminated rep-
resentative payee.’’.
(3) AMENDMENTS RELATED TO PROVISIONS IN
SECTION 5106 RELATING TO COORDINATION OF RULES
UNDER TITLES II AND XVI GOVERNING FEES FOR REP-
RESENTATIVES OF CLAIMANTS WITH ENTITLEMENTS
UNDER BOTH TITLES.—
(A) CALCULATION OF FEE OF CLAIMANT’S
REPRESENTATIVE BASED ON AMOUNT OF PAST-
DUE
SUPPLEMENTAL
SECURITY
INCOME
BENE-
FITS AFTER APPLICATION OF WINDFALL OFFSET
PROVISION.—Section 1631(d)(2)(A)(i) of the So-
cial Security Act (as amended by section
5106(a)(2) of the Omnibus Budget Reconcili-
ation Act of 1990) (42 U.S.C. 1383(d)(2)(A)(i))
is amended to read as follows:
‘‘(i) by substituting, in subparagraphs (A)(ii)(I)
and (C)(i), the phrase ‘(as determined before any ap-
plicable reduction under section 1631(g), and reduced
by the amount of any reduction in benefits under this
title or title II made pursuant to section 1127(a))’ for
the parenthetical phrase contained therein; and’’.
150
(B) CALCULATION OF PAST-DUE BENEFITS
FOR
PURPOSES
OF
DETERMINING
ATTORNEY
FEES IN JUDICIAL PROCEEDINGS.—
(i) IN GENERAL.—Section 206(b)(1) of
such Act (42 U.S.C. 406(b)(1)) is amend-
ed—
(I) 
by 
inserting 
‘‘(A)’’ 
after
‘‘(b)(1)’’; and
(II) by adding at the end the fol-
lowing new subparagraph:
‘‘(B) For purposes of this paragraph—
‘‘(i) the term ‘past-due benefits’ excludes any
benefits with respect to which payment has been con-
tinued pursuant to subsection (g) or (h) of section
223, and
‘‘(ii) amounts of past-due benefits shall be taken
into account to the extent provided under the rules
applicable in cases before the Secretary.’’.
(ii) PROTECTION
FROM
OFFSETTING
SSI BENEFITS.—The last sentence of section
1127(a) of such Act (as added by section
5106(b) of the Omnibus Budget Reconcili-
ation Act of 1990) (42 U.S.C. 1320a–6(a))
is amended by striking ‘‘section 206(a)(4)’’