of 1993, if the service performed by such individual
in such position did not as of such day constitute
employment within the meaning of this subsection,
service performed by such individual on or after
such effective date in the employ of the United
States or any instrumentality of the United States
shall be treated as service described in this para-
graph until a break in continuous performance of
such service (within the meaning of ‘continuous’ pro-
vided by clause (i) of subparagraph (B));’’.
(2) SERVICE TREATED AS EMPLOYMENT UNDER
FICA.—Paragraph (5) of section 3121(b) of the In-
ternal Revenue Code of 1986 (relating to definition
of employment) is amended by adding at the end the
following:
‘‘and except that, in the case of an individual serving
in a position as of the day before the effective date
of a conversion of such position under section 102(a)
of the Social Security Procedural Improvements Act
of 1993, if the service performed by such individual
in such position did not as of such day constitute
employment within the meaning of this subsection,
service performed by such individual on or after
such effective date in the employ of the United
States or any instrumentality of the United States
shall be treated as service described in this para-
graph until a break in continuous performance of
such service (within the meaning of ‘continuous’ pro-
vided by clause (i) of subparagraph (B));’’.
SEC. 103. REQUIREMENT OF FULLY-INSURED STATUS OF
WORKER FOR ENTITLEMENT TO CHILD’S OR
PARENT’S INSURANCE BENEFITS.
(a) CHILD’S INSURANCE BENEFITS.—Section 202(d)
of the Social Security Act (42 U.S.C. 402(d)) is amend-
ed—
(1) in paragraph (1), by striking ‘‘fully or cur-
rently insured’’ and inserting ‘‘fully insured’’; and
(2) in paragraph (3), by striking ‘‘fully or cur-
rently insured’’ in the matter following subpara-
graph (B) and inserting ‘‘fully insured’’.
(b) MOTHER’S AND FATHER’S INSURANCE BENE-
FITS.—Section 202(g)(1) of such Act (42 U.S.C.
402(g)(1)) is amended by striking ‘‘fully or currently in-
sured’’ and inserting ‘‘fully insured’’.
(c) LUMP-SUM DEATH PAYMENTS.—Section 202(i)
of such Act (42 U.S.C. 402(i)) is amended by striking
‘‘fully or currently insured’’ and inserting ‘‘fully insured’’.
(d) CONFORMING AMENDMENTS.—Section 216(h) of
such Act (42 U.S.C. 416(h)) is amended by striking ‘‘fully
or currently insured’’ each place it appears and inserting
‘‘fully insured’’.
SEC. 
104. 
REPORT 
REGARDING 
DEMONSTRATION
PROJECTS PILOTING CASE MANAGEMENT
TECHNIQUES.
Not later than December 31, 1995, the Secretary of
Health and Human Services 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
regarding the 4 demonstration projects conducted under
the authority of section 505(a) of the Social Security Dis-
ability Amendments of 1980 which currently pilot case
management techniques in the disability insurance pro-
gram under title II of the Social Security Act. Such report
shall contain a comprehensive assessment of the results
obtained under such projects, together with recommenda-
tions of the Secretary for facilitating case management
services for not more than 331⁄3 percent of all beneficiaries
under such program by not later than December 31, 1997,
and for not more than 50 percent of such beneficiaries
by not later than December 31, 1999, and such proposals
for legislative changes as may be necessary and appro-
priate to carry out such recommendations.
SEC. 105. EFFECTIVE DATES.
The amendments made by sections 101 and 102 shall
take effect on the date of the enactment of this Act. The
amendments made by section 103 shall apply with respect
to deaths occurring after December 31, 1993.
TITLE II—ESTABLISHMENT OF SOCIAL SECU-
RITY COURT AND ABOLITION OF APPEALS
COUNCIL
SEC. 201. ENTITLEMENT TO JUDICIAL REVIEW.
Section 205(g) of the Social Security Act (42 U.S.C.
405(g)) is amended to read as follows:
‘‘(g)(1) Any individual, after any final decision of the
Secretary made after a hearing to which he was a party
(under subsection (b) or under any other provision of this
Act which authorizes a hearing in the same manner or
to the same extent as is provided in such subsection), irre-
spective of the amount in controversy, may obtain a review
of such decision by a civil action brought in the Social
Security Court and commenced within 60 days after the
mailing to him of notice of such decision or within such
further time as the Secretary may allow.
‘‘(2) As part of his answer in an action brought by
an individual for the review of the decision in the Social
Security Court, the Secretary shall file a certified copy of
the transcript of the record including the evidence upon
which the findings and decision complained of are based.
The Social Security Court shall have power to enter, upon
the pleadings and transcript of the record, a judgment af-
firming, modifying, or reversing the decision. The findings
as to any fact, if supported by substantial evidence, shall
be conclusive; and where the claim was denied by the Sec-
retary or the decision rendered under subsection (b) of
this section or subsection (d) of section 221 was adverse
to any individual who was a party to the proceedings held
under that subsection, because of the failure of the claim-
ant or such individual to submit proof in conformity with
any regulation made or adopted under subsection (a), the
Court shall review only the question of conformity with
such regulations and the validity of such regulations.
‘‘(3) The Social Security Court may, on motion of
the Secretary for good cause shown before he files his an-
swer, remand the case for further action by an administra-
tive law judge. The Court may also, at any time, order
additional evidence to be taken before an administrative
law judge on a showing that there is new material evidence
and that there is good cause for the failure to incorporate
it into the record of the prior proceeding.
‘‘(4) The claimant and the Secretary shall be parties
to the proceeding before an administrative law judge in
any case remanded from the Social Security Court. The
administrative law judge shall file with the Court his deci-
sion and any additional or modified findings of fact result-
ing from the proceeding, which shall be reviewable only
to the same extent as the original decision and findings.
The filing shall include a transcript of the additional
record on which the modification or affirmance of the
original decision and findings was based.
‘‘(5) The judgment of the Social Security Court shall
be final except that it shall be subject to review as pro-
vided in section 712(g).
‘‘(6) Any action instituted in accordance with this
subsection shall survive notwithstanding any change in the
person occupying the office of Secretary or any vacancy
in such office.’’.
SEC. 202. SOCIAL SECURITY COURT.
(a) IN GENERAL.—Title VII of the Social Security
Act is amended by inserting after section 711 (42 U.S.C.
912) the following new section:
‘‘SOCIAL SECURITY COURT
‘‘Establishment
‘‘SEC. 712. (a) There is hereby established a court
of record to be known as the Social Security Court.
‘‘Jurisdiction
‘‘(b) The Social Security Court (and its divisions es-
tablished under subsection (d)(1)) shall have exclusive ju-
risdiction, in actions brought as described in section
205(g), to review decisions rendered under sections 205(b)
and 221(d), final determinations made under section
1631(c)(3), and final decisions rendered under sections
1128(f), 1155, 1156(b)(4), 1866(h)(1), 1869(b)(1),
1876(c)(5)(B), 1881(g)(3), and 1910(b)(2) and shall have
exclusive jurisdiction in all other cases and proceedings
arising under titles II, XVI, and XVIII and in all cases
and proceedings involving the validity or administration
of such titles, regardless of the form or manner in which
such cases and proceedings are brought.
‘‘Judges
‘‘(c)(1) The Social Security Court shall be composed
of 20 judges, appointed by the President, by and with the
advice and consent of the Senate, solely on the grounds
of fitness to perform the duties of the office. The Presi-
dent shall appoint one of the judges of the Court as its
chief judge.
‘‘(2) The chief judge of the Social Security Court
shall receive a salary at the same rate and in the same
installments as judges of the district courts of the United
States; and the other judges of the Court shall receive a
salary at the rate provided for positions in level V of the
Executive Schedule (5 U.S.C. 5316).
‘‘(3) Judges of the Social Security Court shall receive
necessary traveling expenses, and expenses actually in-
curred for subsistence while traveling on duty and away
from their designated stations, subject to the same limita-
tions on amount as are now or may hereafter be applicable
to the United States Customs Court.
‘‘(4) The term of office of any judge of the Social
Security Court shall expire 10 years after he takes office.
‘‘(5)(A) A judge of the Social Security Court may be
removed by the President, but only during the term for
which such judge is appointed and only for incompetency,
misconduct, neglect of duty, engaging in the practice of
law, or physical or mental disability.
‘‘(B) Before any order of removal may be entered,
a full specification of the charges shall be furnished to the
judge involved, and the judge shall be accorded an oppor-
tunity to be heard on the charges.
‘‘(C) Any cause for removal of any judge of the Social
Security Court coming to the knowledge of the Director
of the Administrative Office of the United States Courts
shall be reported by him to the President, and a copy of
the report shall at the same time be transmitted to the
judge.
‘‘(D) A judge removed from office under this section
shall not be permitted at any time to practice before the
Social Security Court.
‘‘Organizational Matters
‘‘(d)(1) In order that cases may be heard throughout
the United States in a manner which will promote the ob-
jective specified in paragraph (3), the chief judge may
from time to time divide the Social Security Court into
divisions of one or more judges, assign the judges of the
Court thereto, and, in the case of a division of more than
one judge, designate a chief thereof. If a division, as a
result of a vacancy or the absence or inability of a judge
assigned thereto, is composed of less than the number of
judges designated for the division, the chief judge may as-
sign other judges to the division or direct the division to
proceed with the transaction of business without awaiting
any additional assignment of judges thereto.
‘‘(2) The Social Security Court or any of its divisions
may sit at any place within the United States.
‘‘(3) The times and places of the sessions of the So-
cial Security Court and of its divisions shall be prescribed
by the chief judge with the objective of securing reasonable
opportunity to claimants to appear before the Court or
any of its divisions with as little inconvenience and
expense as is practicable.
‘‘Procedural Matters
‘‘(e)(1) A majority of the judges of the Social Secu-
rity Court or of any division thereof shall constitute a
quorum for the transaction of the business of the Court
or of such division, respectively. A vacancy in the Social
Security Court or in any division thereof shall not impair
the powers or affect the duties of the Court or such divi-
sion or of the remaining judges of the Court or such divi-
sion, respectively.
‘‘(2) The proceedings of the Social Security Court
and its divisions shall be conducted in accordance with
such rules of practice and procedure as the Court may
prescribe. The rules of practice and procedure prescribed
by the Court under the preceding sentence may provide
for the imposition of fees for the filing of petitions, but
any such fee may be waived by the Court in any case upon
a determination that the imposition of such fee would
cause hardship to the claimant. The rules of practice and
procedure so prescribed may also specify qualifications for
persons representing claimants, but no qualified person
may be denied admission to practice before the Court be-
cause of his failure to be a member of any profession or
calling.
‘‘(3) The mailing by certified mail or registered mail
of any pleading, decision, order, notice, or process in re-
spect of proceedings before the Social Security Court shall
be held sufficient service of such pleading, decision, order,
notice, or process.
‘‘(4) The chief judge may from time to time appoint
commissioners, in sufficient numbers to meet the needs
of the Social Security Court, who shall proceed under such
rules and regulations as may be promulgated by the Court.
Each commissioner shall receive the same compensation
and travel and subsistence allowances provided by law for
commissioners of the United States Court of Claims.
‘‘(5) The Social Security Court and each division
thereof shall have power to punish by fine or imprison-
ment, at its discretion, any contempt of its authority in
the form of—
‘‘(A) misbehavior of any person in its presence
or 
so 
near 
thereto 
as 
to 
obstruct 
the
administration of justice;
‘‘(B) misbehavior of any of its officers in their
official transactions; or
‘‘(C) disobedience or resistance to its lawful
writ, process, order, rule, decree, or command.
It shall have such assistance in the carrying out of its law-
ful writ, process, order, rule, decree, or command as is
available to a court of the United States.
‘‘(6) Notice and opportunity to be heard upon any
proceeding in the Social Security Court or any division
thereof shall be given to the claimant and the Secretary.
If an opportunity to be heard upon the proceeding is given
before a division of the Court, neither the claimant nor
the Secretary shall be entitled to notice and opportunity
to be heard before the Court upon review, except upon
a specific order of the chief judge. Hearings before the
Social Security Court and its divisions shall be open to
the public, and the proceedings shall be stenographically
reported. The Court is authorized to contract (by renewal
of contract or otherwise) for the reporting of such proceed-
ings, and in any such contract to fix the terms and condi-
tions under which transcripts will be supplied by the con-
tractor to the Court and to other persons and agencies.
‘‘(7) A decision in any proceeding in the Social Secu-
rity Court or a division thereof shall be rendered as quick-
ly as practicable. The decision made (and any order grant-
ed pursuant thereto) shall, when entered, be the decision
(and order) of the Social Security Court, except as other-
wise provided in paragraph (8). It shall be the duty of
the Court and of each division to render its decision in
writing.
‘‘(8) A division shall hear, and make a written deci-
sion upon, any proceeding instituted before the Social Se-
curity Court (including any motion in connection there-
with) which is assigned to such division by the chief judge,
and such decision shall constitute its final disposition of
the proceeding. The decision of the division shall become
the decision of the Court within 60 days after such deci-
sion by the division, unless (A) within such period a party
to the proceedings has petitioned the chief judge for direct
review of the decision and (before or after the expiration
of such period) the chief judge has granted such petition,
or (B) within such period the chief judge on his own mo-
tion has directed that such decision shall be reviewed by
the Court. The chief judge may provide that any such re-
view be conducted by the Court itself en banc or may as-
sign the decision to be reviewed to a panel consisting of
at least three judges of the Court (not including any judge
who was a member of the division which made the deci-
sion); and any order or decision made by such a panel
upon such a review shall be the decision of the Social Secu-
rity Court.
‘‘(9)(A) All proceedings, decisions, and orders of the
Social Security Court and its divisions, including a tran-
script of the stenographic report of the proceedings, shall
be public records open to the inspection of the public.
‘‘(B) The Social Security Court shall provide for the
publication at the Government Printing Office of any of
its decisions which the chief judge determines will or may
serve as precedents in subsequent cases, in such form and
manner as may be best adapted for public information and
use, and such authorized publication shall be competent
evidence of the decisions of the Social Security Court
therein contained in all courts of the United States and
of the several States without any further proof of authen-
tication thereof. Such decision shall be subject to sale in
the same manner and upon the same terms as other public
documents.
‘‘(10) The Social Security Court shall have a seal
which shall be judicially noticed.
‘‘Administrative Matters
‘‘(f)(1) The Social Security Court is authorized to ap-
point, in accordance with the provisions of title 5, United
States Code, governing appointments in the competitive
service, and to fix the basic pay of, in accordance with
chapter 51 and subchapter III of chapter 53 of such title,
such employees as may be necessary efficiently and effec-
tively to execute the functions vested in the Court.
‘‘(2) The employees of the Social Security Court shall
receive their necessary traveling expenses, and expenses
for subsistence while traveling on duty and away from
their designated stations, as provided in chapter 57 of title
5, United States Code.
‘‘(3) The Social Security Court is authorized to make
such expenditures (including expenditures for personal
services and rent at the seat of government and elsewhere,
and for lawbooks, books of reference, and periodicals) as
may be necessary to execute efficiently the functions vest-
ed in the Court. All expenditures of the Court shall be
allowed and paid, out of any moneys appropriated for pur-
poses of the Court, upon presentation of itemized vouchers
therefor signed by the certifying officer designated by the
chief judge.
‘‘(4) All fees received by the Social Security Court
shall be covered into the Treasury as miscellaneous re-
ceipts.
‘‘(5) The Social Security Court is authorized to fix
and impose a fee, not in excess of the fee fixed by law
to be charged and collected therefor by the clerks of the
district courts, for comparing, or for preparing and com-
paring, a transcript of the record, or for copying any
record, entry, or other paper and the comparison and cer-
tification thereof; except that any fee so fixed may be
waived by the Court in any case upon a determination that
the imposition of such a fee would cause hardship to a
claimant.
‘‘Appeals From the Court
‘‘(g) The United States Court of Appeals for the Fed-
eral Circuit shall have exclusive jurisdiction to review the
decisions of the Social Security Court upon appeal by ei-
ther the Secretary or the claimant; but a party may not
apply to the court of appeals for leave to appeal such a
decision unless such decision was made or reviewed by the
Social Security Court en banc or reviewed by a panel de-
scribed in subsection (e)(8), or was the subject of a peti-
tion under subsection (e)(8) for review by the Social Secu-
rity Court en banc and such petition was denied. Any such
appeal to the court of appeals shall be subject to the same
provisions, conditions, and requirements (including fur-
ther review by the United States Supreme Court in ac-
cordance with section 1254 of title 28, United States
Code) as an appeal from a final decision of a district court
of the United States under chapter 83 of such title 28.
‘‘Retirement of Judges
‘‘(h) Judges of the Social Security Court shall retire
and be entitled to retired pay, and widows and dependent
children of such judges shall be entitled to annuities, in
the same manner and subject to the same provisions, con-
ditions, and requirements as judges of the United States
Tax Court (and their widows and dependent children)
under sections 7447 and 7448 of the Internal Revenue
Code of 1986. The chief judge of the Social Security Court
first appointed, in consultation with the Office of Person-
nel Management, shall within 120 days after such appoint-
ment submit to the President and the Congress his rec-
ommendations for appropriate legislative and administra-
tive action to implement the retirement system established
by the preceding sentence.
‘‘Availability of Trust Funds and Authorization of
Appropriations
‘‘(i)(1) The expenses of the Social Security Court
shall be paid—
‘‘(A) from the Federal Old-Age and Survivors
Insurance Trust Fund to the extent that such ex-
penses are attributable to cases involving claims
which are or would be payable from that Fund;
‘‘(B) from the Federal Disability Insurance
Trust Fund to the extent that such expenses are at-
tributable to cases involving claims which are or
would be payable from that Fund;
‘‘(C) from the Federal Hospital Insurance
Trust Fund to the extent that such expenses are at-
tributable to cases involving claims which are or
would be payable from that Fund; and
‘‘(D) from funds appropriated for purposes of
this section (and the appropriation of such funds is
hereby authorized) to the extent that such expenses
are attributable to (i) cases involving claims which
are or would be payable under title XVI or (ii) other
cases or proceedings not involving the payment of
specific claims from any of such Trust Funds.
‘‘(2) Payments to the Social Security Court from the
Trust Funds specified in subparagraphs (A), (B), and (C)
of paragraph (1) shall be made on the first day of each
calendar quarter, on the basis of estimates (by the Manag-
ing Trustee of such Funds) of the amount of the expenses
to be incurred by the Court during that quarter which are
attributable to cases within each of the categories de-
scribed in such subparagraphs; and proper adjustments
shall be made in subsequent payments to the Court under
this subsection to the extent that prior estimates (with re-
spect to cases within any such category) were in excess
of or were less than they should have been.’’.
(b) CONFORMING AMENDMENTS.—
(1)(A) Section 205(c)(8) of such Act (42
U.S.C. 405(c)(8)) is amended by striking ‘‘the Unit-
ed States district court’’ and inserting ‘‘the Social
Security Court,’’.
(B) Section 221(d) of such Act (42 U.S.C.
421(d)) is amended by striking ‘‘judicial review of
the Secretary’s final decision’’ and inserting ‘‘review
of the Secretary’s final decision in the Social Secu-
rity Court’’.
(C) Sections 1128(f), 1155, and 1156(b)(4) of
such Act (42 U.S.C. 1320a–7(f), 1320c–4, and
1320c–5(b)(4)) are each amended by striking ‘‘judi-
cial review of the Secretary’s final decision’’ and in-
serting ‘‘review of the Secretary’s final decision in
the Social Security Court’’.
(D) Section 1631(c)(3) of such Act (42 U.S.C.
1383(c)(3)) is amended by striking ‘‘judicial review’’
and inserting ‘‘review in the Social Security Court’’.
(E) 
Sections 
1866(h)(1), 
1869(b)(1),
1876(c)(5)(B), 1881(g)(3), and 1910(b)(2) of such
Act 
(42 
U.S.C. 
1395cc(h)(1), 
1395ff(b)(1),
1395mm(c)(5)(B), 1395rr(g)(3), and 1396i(b)(2))
are each amended by striking ‘‘judicial review of the
Secretary’s final decision’’ and inserting ‘‘review of
the Secretary’s final decision in the Social Security
Court’’.
(2)(A) Section 201(h) of such Act (42 U.S.C.
401(h)) is amended—
(i) by inserting ‘‘along with expenditures
for any related expenses of the Social Security
Court with respect to cases involving claims for
such 
payments 
as 
described 
in 
section
712(i)(1)(B),’’ immediately before ‘‘shall be
made’’ in the first sentence; and
(ii) by inserting ‘‘, along with expenditures
for any related expenses of the Social Security
Court with respect to cases involving claims for
such 
payments 
as 
described 
in 
section
712(i)(1)(A),’’ immediately before ‘‘shall be
made’’ in the second sentence.
(B) Section 1817(h) of such Act (42 U.S.C.
1395i(h)) is amended by inserting before the period
at the end the following: ‘‘, and such amounts as are
necessary to pay the expenses of the Social Security
Court with respect to cases involving claims for pay-
ments under this part as described in section
712(i)(1)(C)’’.
SEC. 203. ABOLITION OF APPEALS COUNCIL.
(a) ABOLITION OF THE APPEALS COUNCIL.—The
Appeals Council in the Department of Health and Human
Services is abolished.
(b) CONTINUED AUTHORITY OF SECRETARY.—Noth-
ing in subsection (a) shall be construed to limit to any
extent the authority of the Secretary of Health and
Human Services under the Social Security Act to hold
such hearings and to conduct such investigations and
other proceedings as he or she may deem necessary or
proper for the administration of such Act.
SEC. 204. EFFECTIVE DATE AND TRANSITIONAL RULES.
(a) EFFECTIVE DATE.—The provisions of this title
relating to the establishment and constitution of the Social
Security Court shall be effective on the date of the enact-
ment of this Act; but the amendments made by this title
relating to decisions rendered and determinations made on
claims under titles II, XVI, and XVIII of the Social Secu-
rity Act (including the abolition of the Appeals Council
under section 203) shall apply only in the case of decisions
rendered and determinations made one year or more after
such date.
(b) EXPEDITED PROCEDURES DURING ONE-YEAR
TRANSITIONAL PERIOD.—During the one-year period be-
ginning on the date of the enactment of this Act, the pro-
ceedings held in the district courts of the United States
in cases involving final decisions of the Secretary rendered
and final determinations of the Secretary made on claims
under titles II, XVI, and XVIII of the Social Security Act
shall be preferred cases and shall be expedited in every
way.
(c) TRANSFER OF CASES FROM APPEALS COUNCIL
TO SOCIAL SECURITY COURT.—Cases pending before the
Appeals Council in the Department of Health and Human
Services at the expiration of the one-year period beginning
on the date of the enactment of this Act shall be trans-
ferred to the Social Security Court and shall be deemed
to have been timely filed in such Court; but the claimant
in any such case shall have the right to withdraw the case
from such Court at any time.
Æ
HR 3487 IH——2
HR 3487 IH——3
HR 3487 IH——4