II
Calendar No. 433
103D CONGRESS
2D SESSION
H. R. 4277
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 SENATE OF THE UNITED STATES
MAY 19 (legislative day, MAY 16, 1994)
Received; read twice and placed on the calendar
AN ACT
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
‘‘Social 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 of-
fices of the Social Security Administration.
Sec. 204. Expansion of State option to exclude service of election officials or
election 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 po-
licemen 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
pension 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 in-
formation.
Sec. 215. Increase in authorized period for extension of time to file annual
earnings report.
Sec. 216. Extension of disability insurance program demonstration project au-
thority.
Sec. 217. Cross-matching of social security account number information and
employer identification number information maintained by the
Department of Agriculture.
Sec. 218. Certain transfers to railroad retirement account made permanent.
Sec. 219. Authorization for use of social security account numbers by depart-
ment of labor in administration of Federal workers’ compensa-
tion 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
section 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 deter-
mining 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
Department of Health and Human Services.
(2) To charge the Social Security Administra-
tion with administration of the old-age, survivors,
and disability insurance program and supplemental
security income program.
(3) To establish a Social Security board as head
of the Social Security Administration and define the
powers and duties of such Board.
(4) To establish an Executive Director of the
Administration 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 Govern-
ment, a Social Security Administration. It shall be the
duty of the Administration to administer the old-age, sur-
vivors, and disability insurance program under title II and
the supplemental security income program under title
XVI.’’.
SEC. 102. SOCIAL SECURITY BOARD, 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
governed by a Social Security Board. The Board shall be
composed of three members appointed by the President,
by and with the advice and consent of the Senate. The
members shall be chosen on the basis of their integrity,
impartiality, and good judgment, and shall be individuals
who are, by reason of their education, experience, and at-
tainments, exceptionally 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 pur-
suant to a finding by the President of neglect of duty or
malfeasance in office. The President shall transmit any
such finding to the Speaker of the House of Representa-
tives and the majority leader of the Senate not later than
five days after the date on which such finding is made.
‘‘(ii) Of the members first appointed—
‘‘(I) one shall be appointed for a term 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 consider-
ation of recommendations made by the chairman of the
Committee on Ways and Means of the House of Rep-
resentatives and of recommendations made by the chair-
man of the Committee 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 member appointed to a term of office after the com-
mencement of such term may serve under such appoint-
ment 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, vo-
cation, 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 mem-
ber 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, survi-
vors, 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 implementa-
tion 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 Sur-
vivors Insurance Trust Fund and the Federal Dis-
ability Insurance Trust Fund, with the Chairperson
of the Social Security Board serving as Chairperson
of such Board of Trustees,
‘‘(F) prepare an annual budget for the Admin-
istration, which shall be submitted by the President
to the Congress without revision, together with the
President’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 so-
cial insurance, supplemental security income, and re-
lated programs and as to legislation and matters of
administrative policy concerning the programs re-
ferred 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 reg-
ulations as the Board determines necessary or appropriate
to carry out the functions of the Administration. The reg-
ulations prescribed by the Board shall be subject to the
rulemaking 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 with-
in the Administration as the Board considers necessary
or appropriate to carry out its functions, except that this
subparagraph shall not apply with respect to any unit,
component, or position provided for by this Act.
‘‘(C) The Board may, with respect to the administra-
tion of the old-age, survivors, and disability insurance pro-
gram under title II and the supplemental security income
program under title XVI, assign duties, and delegate, or
authorize successive redelegations of, authority to act and
to render decisions, to such officers and employees as the
Board may find necessary. Within the limitations of such
delegations, redelegations, or assignments, all official acts
and decisions of such officers and employees shall have
the same force and effect as though performed or rendered
by the Board.
‘‘Executive Director
‘‘(b)(1) There shall be in the Administration an Exec-
utive Director who shall be appointed by the Social Secu-
rity 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.
Trust Fund and the Federal Disability Insurance
Trust Fund,
‘‘(G) report in December of each year to the
Board for transmittal to the Congress concerning
the administrative endeavors and accomplishments
of the Administration, and
‘‘(H) carry out such additional duties as are as-
signed by the Board from time to time.
Any reference to the Board in this Act or any other provi-
sion of law in connection with the exercise of a function
of the Board which is delegated to the Executive Director
pursuant to this section shall be considered a reference
to the Executive Director.
‘‘Deputy Director of Social Security
‘‘(c)(1) There shall be in the Office of the Executive
Director a Deputy Director, who shall be appointed by and
serve at the pleasure of the Executive Director.
‘‘(2) The Deputy Director shall be compensated at
the rate provided for level III of the Executive Schedule.
‘‘(3) The Deputy Director shall perform such duties
and exercise such powers as the Executive Director shall
from time to time assign or delegate. The Deputy Director
shall be Acting Executive Director of the Administration
during the absence or disability of the Executive Director
and, unless the Board designates another officer of the