103D CONGRESS
2D SESSION
H. R. 4277
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.
‘‘(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 pro-
gram 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 imple-
mentation of such programs,
‘‘(D) report annually to the Board on program
costs under titles II and XVI, make annual budg-
etary recommendations to the Board for the ongoing
administrative 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
proposed legislative changes in such programs,
‘‘(F) serve as Secretary of the Board of Trust-
ees of the Federal Old-Age and Survivors Insurance
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
Government as Acting Executive Director, in the event of
a vacancy in the office of the Executive Director.
‘‘General Counsel
‘‘(d)(1) There shall be in the Administration a Gen-
eral 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 In-
spector 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
individual may be appointed as Beneficiary Ombudsman
for additional 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 dis-
ability insurance program under title II and the sup-
plemental security income program under title XVI.
‘‘(B) To review the Administration’s policies
and procedures for possible adverse effects on such
beneficiaries.
‘‘(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
Beneficiary Ombudsman has staff sufficient to enable the
Beneficiary Ombudsman to efficiently carry out his or her
duties. Such staff shall be located in the regional offices,
program centers, and central office of the Administration.
‘‘(6) The annual report of the Board under section
704 shall include a description of the activities of the Ben-
eficiary Ombudsman.
‘‘Administrative Law Judge
‘‘(g)(1) There shall be in the Administration an Of-
fice of the Chief Administrative Law Judge, who shall be
appointed by the Board. The duty of the Chief Adminis-
trative Law Judge shall be to administer the affairs of
the administrative law judges serving in the Administra-
tion in a manner 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 re-
port 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
Security Administration established under section 701 of
the Social Security Act (as amended by this Act) and shall
assume the powers and duties of such Board and of the
Executive 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
appoint such additional officers and employees as it con-
siders necessary to carry out its functions. Except as oth-
erwise provided in any other provision of law, such officers
and employees shall be appointed, and their compensation
shall be fixed, in accordance with title 5, United States
Code.
‘‘(2) The Board may procure the services of experts
and consultants in accordance with the provisions of sec-
tion 3109 of title 5, United States Code.
‘‘(3) The Director of the Office of Personnel Manage-
ment shall authorize for the Administration a total num-
ber of Senior Executive Service positions which is greater
than the number of such positions authorized in the Social
Security Administration in the Department of Health and
Human Services as of immediately before the date of the
enactment of the Social Security 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 posi-
tions 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 Administra-
tion in the Executive Schedule specified in section 702,
the Administration is authorized six additional positions
at level IV of the Executive Schedule and six additional
positions at level V of the Executive Schedule.
‘‘Budgetary Matters
‘‘(b) Appropriations requests for staffing and person-
nel of the Administration shall be based upon a com-
prehensive 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
Security Board shall allocate such functions in accordance
with sections 701, 702, and 703 of the Social Security
Act (as amended by this Act).
(b) PERSONNEL, ASSETS, ETC.—(1) There are trans-
ferred from the Department of Health and Human Serv-
ices to the Social Security Administration, for appropriate
allocation by the Social Security Board in the Social Secu-
rity 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 po-
sitions) other than positions specifically required
under section 5316 of such title or any other provi-
sion 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 SERV-
ICES.—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 De-
partment of Health and Human Services is abolished.
SEC. 105. TRANSITIONAL RULES.
(a) INTERIM AUTHORITY FOR APPOINTMENT AND
COMPENSATION.—At any time on or after the date of the
enactment 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 sec-
tion, and
(2) the Social Security Board, upon entry upon
office of all of the members thereof, may prescribe
regulations providing for the orderly transfer of pro-
ceedings before the Secretary of Health and Human
Services to the Social Security Board.
Funds available to any official or component of the De-
partment of Health and Human Services, functions of
which are transferred to the Social Security Board or the
Social Security Administration by this Act, may be used,
with the approval of the Director of the Office of Manage-
ment 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, certifi-
cates, licenses, and privileges—
(1) which have been issued, made, promulgated,
granted, or allowed to become effective, in the exer-
cise of functions (A) which were exercised by the
Secretary of Health and Human Services (or his del-
egate), and (B) which relate to functions which, by
reason of this Act, the amendments made thereby,
and regulations prescribed thereunder, are vested in
the Social Security Board, and
(2) which are in effect immediately before 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 provi-
sions of this Act (including the amendments made there-
by) shall not affect any proceeding pending before the Sec-
retary of Health and Human Services immediately before
October 1, 1995, with respect to functions vested (by rea-
son of this Act, the amendments made thereby, and regu-
lations prescribed thereunder) in the Social Security
Board, except that such proceedings, to the extent that
they relate to such functions, shall continue before such
Board. Orders shall be issued under any such proceeding,
appeals taken therefrom, and payments shall be made pur-
suant to such orders, in like manner as if this Act had
not been enacted, and orders issued in any such proceed-
ing shall continue in effect until modified, terminated, su-
perseded, or repealed by such Board, by a court of com-
petent jurisdiction, or by operation of law.
(d) CONTINUATION OF SUITS.—Except as provided
in this subsection—
(1) the provisions of this Act shall not affect
suits commenced prior to October 1, 1995; and
(2) in all such suits proceedings shall be had,
appeals taken, and judgments rendered, in the same
manner and effect as if this Act had not been en-
acted. No cause of action, and no suit, action, or
other proceeding commenced by or against any offi-
cer in his official capacity as an officer of the De-
partment of Health and Human Services, shall abate
by reason of the enactment of this Act. Causes of
action, suits, actions, or other proceedings may be
asserted by or against the United States and the So-
cial Security Administration, or such official of such
Administration as may be appropriate, and, in any
litigation pending 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 ef-
fect to the provisions of this subsection (including,
where appropriate, an order for substitution of par-
ties).
(e) CONTINUATION OF PENALTIES.—This Act shall
not have the effect of releasing or extinguishing any crimi-
nal prosecution, penalty, forfeiture, or liability incurred as
a result of any function which (by reason of this Act),
the amendments made thereby, and regulations prescribed
thereunder) is vested in the Social Security Board.
(f) JUDICIAL REVIEW.—Orders and actions of the
Social Security Board in the exercise of functions vested
in such Board under this Act (and the amendments made
thereby) shall be subject to judicial review to the same
extent and in the same manner as if such orders had been
made and such actions had been taken by the Secretary
of Health and Human Services in the exercise of such
functions immediately before October 1, 1995. Any statu-
tory requirements relating to notice, hearings, action upon
the record, or administrative review that apply to any
function so vested in such Board shall continue to apply
to the exercise of such function by such Board.
(g) EXERCISE OF FUNCTIONS.—In the exercise of the
functions vested in the Social Security Board under this
Act, the amendments made thereby, and regulations pre-
scribed thereunder, such Board shall have the same au-
thority as that vested in the Secretary of Health and
Human Services with respect to the exercise of such func-
tions immediately preceding the vesting of such functions
in such Board, and actions of such Board shall have the
same force and effect as when exercised by such Secretary.
(h) OPERATION OF TRANSITIONAL RULES IN THE
EVENT
OF
INTERIM
AUTHORITY
IN
THE
COMMIS-
SIONER.—For purposes of this section, in any case in
which the powers and duties to be transferred to the Social
Security Board are transferred to the Commissioner of So-
cial Security (or acting Commissioner) in the Department
of Health and Human Services for an interim period pur-
suant to section 102(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 act-
ing 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 mem-
bers of the Board had entered 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, sec-
tion 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,
‘‘Department of Health and Human Services’’ and
inserting ‘‘Social Security Administration’’;
(3) by striking, wherever it appears therein,
‘‘Department’’ (but only if it is not immediately suc-
ceeded by the words ‘‘of Health and Human Serv-
ices’’, and only if it is used in reference to the De-
partment of Health and Human Services) and in-
serting ‘‘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,
‘‘Internal Revenue Code of 1954’’ and inserting ‘‘In-
ternal 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
‘‘Secretary’’ 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
Administration’’; and
(2) in the first sentence of paragraph (2), by
striking ‘‘Commissioner of Social Security’’ and in-
serting ‘‘Executive Director of the Social Security
Administration’’.
(d) AMENDMENT TO SECTION 231.—Section 231(c)
of such Act (42 U.S.C. 431(c)) is amended by striking
‘‘Secretary 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 insert-
ing ‘‘Executive Director of the Social Security Administra-
tion’’.
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
administration of the functions with which they are
charged under this Act. In addition to the number of cop-
ies of such reports authorized by other law to be printed,
there is hereby authorized to be printed not more than
5,000 copies of each such report for use by the Secretary
and Social Security Board for distribution to Members of
Congress and to State and other public or private agencies
or organizations participating in or concerned with the
programs provided for in this Act.’’;
(2) in section 709(b)(2) (42 U.S.C. 910(b)(2)),
by striking ‘‘(as estimated by the Secretary)’’ and
inserting ‘‘, 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 du-
ties 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 con-
cerning the programs administered by the Secretary and
related subjects; except that nothing in this section shall
be construed to require the Secretary to make studies or
recommendations 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. Appoint-
ments of attorneys and experts may be made without re-
gard 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 EM-
PLOYEES.—Whenever any reference is made in any provi-
sion of law (other than this Act or a provision of law
amended by this Act), regulation, rule, record, or docu-
ment to any other officer or employee of the Department
of Health and Human Services with respect to such offi-
cer’s or employee’s functions under such programs, such
reference shall be considered a reference to the appro-
priate officer or employee of the Social Security Adminis-
tration.
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 mem-
bers of the Social Security Board. Sections 102(c) and
105 of this Act shall take effect on the date of the enact-
ment 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 SECU-
RITY 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
‘‘alternative 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 REPRESENT-
ATIVE
PAYEES
FOR
ALL
DISABILITY
BENE-
FICIARIES
SUFFERING
FROM
ALCOHOLISM
OR
DRUG ADDICTION.—
(i) STUDY.—As soon as practicable
after the date of the enactment of this Act,
the Secretary of Health and Human Serv-
ices shall conduct a study of the represent-
ative payee program. In such study, the
Secretary shall examine—
(I) the feasibility, cost, and eq-
uity 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 ad-
dition or alcoholism and ways of ad-
dressing such affliction, including the
feasibility of requiring treatment, and
(IV) the extent to which chil-
dren’s representative payees are af-
flicted by drug addiction or alcohol-
ism, and methods to identify chil-
dren’s representative payees afflicted
by drug addition or alcoholism and to
ensure that benefits continue to be
provided 
to 
beneficiaries 
appro-
priately.
(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 Commit-
tee on Finance of the Senate a report set-
ting forth the findings of the Secretary
based on such Study. Such report shall in-
clude such recommendations for adminis-
trative or legislative changes as the Sec-
retary 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 selec-
tion 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 individual
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 ben-
efit 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, so-
cial service, or health care-related ac-
tivities, 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 ‘bene-
fit based on disability’ of an individual means a disability
insurance benefit of such individual under section 223 or
a child’s, widow’s, or widower’s insurance benefit of such
individual under section 202 based on such individual’s
disability.’’.
(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 follow-
ing 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
contributing factor material to the Secretary’s determina-
tion that such individual is under a disability and such
individual is determined by the Secretary not to be in com-
pliance with the requirements of this subsection for a
month, such benefits shall be suspended for a period com-
mencing with such month and ending with the month pre-
ceding 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
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 Re-
form Act of 1994, if such individual has a primary diag-
nosis 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
individual’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 requirements of such treatment and with require-
ments imposed by the Secretary under paragraph (6).
‘‘(B) An individual described in paragraph (1) shall
not be determined to be not in compliance with the re-
quirements of this subsection for a month if access by such
individual 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 com-
pliance with the requirements of this subsection,
‘‘(B) 3 consecutive months, in the case of the
second such determination with respect to the indi-
vidual, 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 fail-
ure 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 applica-
ble), as the termination month with respect to such entitle-
ment.
‘‘(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
benefits are not payable by reason of this subsection) on
the basis of the wages and self-employment income of such
disabled individual but for the provisions of paragraph (1)
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 monitor-
ing 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 there-
of as described in paragraph (2)(A), in order to assure
such compliance and to determine the extent to which the
imposition 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 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.
‘‘(B) The Secretary, in consultation with drug and
alcohol treatment professionals, shall issue regulations—
‘‘(i) defining appropriate treatment for alcohol-
ics and drug addicts who are subject to required
medical or psychological treatment under this sub-
section, 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 require-
ments 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
treatment described in paragraph (2)(A),
‘‘(II) refer such individuals to such placements
for such treatment, and
‘‘(III) monitor compliance with the require-
ments of paragraph (2)(A) by individuals who are
referred by the agency to such placements and
promptly report 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 preced-
ing month under such current entitlement which is
payable 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 indi-
vidual’s first month of entitlement 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 ter-
mination 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, alcoholism or drug addition is a contributing
factor material to the Secretary’s determination that such
individual is under a disability.
‘‘(9) For purposes of this subsection, the term ‘bene-
fit based on disability’ of an individual means a disability
insurance benefit of such individual under section 223 or
a child’s, widow’s, or widower’s insurance benefit of such
individual under section 202 based on the disability of
such individual.’’.
(B) PRESERVATION OF MEDICARE BENE-
FITS.—Section 226 of such Act (42 U.S.C.
426) is amended by adding at the end the fol-
lowing: