employer to the employee for such service is less
than the applicable dollar threshold (as defined
in subsection (y)) for such year;’’.
(B) Section 3121 of such Code is amended
by adding at the end thereof the following new
subsection:
‘‘(y) DOMESTIC SERVICE IN A PRIVATE HOME.—For
purposes of subsection (a)(7)(B)—
‘‘(1) EXCLUSION
FOR
CERTAIN
FARM
SERV-
ICE.—The term ‘domestic service in a private home
of the employer’ does not include service described
in subsection (g)(5).
‘‘(2) APPLICABLE DOLLAR THRESHOLD.—The
term ‘applicable dollar threshold’ means $1,250. In
the case of calendar years after 1995, the Secretary
of Health and Human Services shall adjust such
$1,250 amount at the same time and in the same
manner as under section 215(a)(1)(B)(ii) of the So-
cial Security Act with respect to the amounts re-
ferred to in section 215(a)(1)(B)(i) of such Act, ex-
cept that, for purposes of this paragraph, 1993 shall
be substituted for the calendar year referred to in
section 215(a)(1)(B)(ii)(II) of such Act. If the
amount determined under the preceding sentence is
not a multiple of $50, such amount shall be rounded
to the nearest multiple of $50.’’.
(C) The second sentence of section 3102(a)
of such Code is amended—
(i) by striking ‘‘calendar quarter’’
each place it appears and inserting ‘‘cal-
endar year’’, and
(ii) by striking ‘‘$50’’ and inserting
‘‘the applicable dollar threshold (as defined
in section 3121(y)(2)) for such year’’.
(2) AMENDMENT OF SOCIAL SECURITY ACT.—
Subparagraph (B) of section 209(a)(6) of the Social
Security Act (42 U.S.C. 409(a)(6)(B)) is amended
to read as follows:
‘‘(B) Cash remuneration paid by an employer in
any calendar year to an employee for domestic serv-
ice in a private home of the employer, if the cash re-
muneration paid in such year by the employer to the
employee for such service is less than the applicable
dollar threshold (as defined in section 3121(y)(2) of
the Internal Revenue Code of 1986) for such year.
As used in this subparagraph, the term ‘domestic
service in a private home of the employer’ does not
include service described in section 210(f)(5).’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to remuneration paid
in calendar years beginning after December 31,
1994.
(4) RELIEF
FROM
LIABILITY
FOR
CERTAIN
UNDERPAYMENT AMOUNTS.—
(A) IN GENERAL.—On and after the date
of the enactment of this Act, an underpayment
to which this paragraph applies (and any pen-
alty, addition to tax, and interest with respect
to such underpayment) shall not be assessed
(or, if assessed, shall not be collected).
(B) UNDERPAYMENTS
TO
WHICH
PARA-
GRAPH APPLIES.—This paragraph shall apply
to an underpayment to the extent of the
amount thereof which would not be an
underpayment if—
(i) the amendments made by para-
graph (1) had applied to calendar years
1993 and 1994, and
(ii)(I) the applicable dollar threshold
for calendar year 1993 were $1,150, and
(II) the applicable dollar threshold for
calendar year 1994 were $1,200.
SEC. 3. ALLOCATIONS TO FEDERAL DISABILITY INSURANCE
TRUST FUND.
(a) ALLOCATION WITH RESPECT TO WAGES.—Sec-
tion 201(b)(1) of the Social Security Act (42 U.S.C.
401(b)(1)) is amended by striking ‘‘(O) 1.20 per centum’’
and all that follows through ‘‘December 31, 1999, and so
reported,’’ and inserting ‘‘(O) 1.20 per centum of the
wages (as so defined) paid after December 31, 1989, and
before January 1, 1994, and so reported, (P) 1.88 per
centum of the wages (as so defined) paid after December
31, 1993, and before January 1, 2000, and so reported,
and (Q) 1.80 per centum of the wages (as so defined) paid
after December 31, 1999, and so reported,’’.
(b) ALLOCATION WITH RESPECT TO SELF-EMPLOY-
MENT INCOME.—Section 201(b)(2) of such Act (42 U.S.C.
401(b)(2)) is amended striking ‘‘(O) 1.20 per centum’’
and all that follows through ‘‘December 31, 1999,’’ and
inserting ‘‘(O) 1.20 per centum of the amount of self-em-
ployment income (as so defined) so reported for any tax-
able year beginning after December 31, 1989, and before
January 1, 1994, (P) 1.88 per centum of the amount of
self-employment income (as so defined) so reported for
any taxable year beginning after December 31, 1993, and
before January 1, 2000, and (Q) 1.80 per centum of the
amount of self-employment income (as so defined) so re-
ported for any taxable year beginning after December 31,
1999,’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to wages paid after
December 31, 1993, and self-employment income for tax-
able years beginning after such date.
(d) STUDY ON RISING COSTS OF DISABILITY BENE-
FITS.—
(1) IN GENERAL.—As soon as practicable after
the date of the enactment of this Act, the Secretary
of Health and Human Services shall conduct a com-
prehensive study of the reasons for rising costs pay-
able from the Federal Disability Insurance Trust
Fund.
(2) MATTERS TO BE INCLUDED IN STUDY.—In
conducting the study under this subsection, the Sec-
retary shall—
(A) determine the relative importance of
the following factors in increasing the costs
payable from the Trust Fund:
(i) increased numbers of applications
for benefits;
(ii) higher rates of benefit allowances;
and
(iii) decreased rates of benefit termi-
nations; and
(B) identify, to the extent possible, under-
lying 
social, 
economic, 
demographic, 
pro-
grammatic, and other trends responsible for
changes in disability benefit applications, allow-
ances, and terminations.
(3) REPORT.—Not later than December 31,
1995, the Secretary shall transmit a report to the
Committee on Ways and Means of the House of
Representatives and the Committee on Finance of
the Senate setting forth the results of the study con-
ducted under this subsection, together with any rec-
ommendations for legislative changes which the
Secretary determines appropriate.
SEC. 4. NONPAYMENT OF BENEFITS TO INCARCERATED IN-
DIVIDUALS AND INDIVIDUALS CONFINED IN
CRIMINAL CASES PURSUANT TO CONVICTION
OR BY COURT ORDER BASED ON FINDINGS
OF INSANITY.
(a) IN GENERAL.—Section 202(x) of the Social Secu-
rity Act (42 U.S.C. 402(x)) is amended—
(1) in the heading, by inserting ‘‘and Certain
Other Inmates of Publicly Funded Institutions’’
after ‘‘Prisoners’’;
(2) in paragraph (1) by striking ‘‘during which
such individual’’ and inserting ‘‘during which such
individual—’’, and by striking ‘‘is confined’’ and all
that follows and inserting the following:
‘‘(A) is confined in a jail, prison, or other penal
institution or correctional facility pursuant to his
conviction of an offense punishable by imprisonment
for more than 1 year (regardless of the actual sen-
tence imposed), or
‘‘(B) is confined by court order in an institution
at public expense in connection with—
‘‘(i) a verdict that the individual is guilty
but insane, with respect to an offense punish-
able by imprisonment for more than 1 year,
‘‘(ii) a verdict that the individual is not
guilty of such an offense by reason of insanity,
‘‘(iii) a finding that such individual is in-
competent to stand trial under an allegation of
such an offense, or
‘‘(iv) a similar verdict or finding with re-
spect to such an offense based on similar fac-
tors (such as a mental disease, a mental defect,
or mental incompetence),
and, for purposes of this subparagraph, an individ-
ual so confined shall be treated as remaining so con-
fined until he or she is unconditionally released from
the care and supervision of such institution and such
institution ceases to meet the individual’s basic liv-
ing needs.’’; and
(3) in paragraph (3), by striking ‘‘any individ-
ual’’ and all that follows and inserting ‘‘any individ-
ual who is confined as described in paragraph (1) if
the confinement is under the jurisdiction of such
agency and the Secretary requires such information
to carry out the provisions of this section.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 226 of such Act (42 U.S.C. 426) is
amended by adding at the end the following new
subsection:
‘‘(i) The requirements of subsections (a)(2) and
(b)(2) shall not be treated as met with respect to any indi-
vidual for any month if a monthly benefit to which such
individual is entitled under section 202 or 223 for such
month is not payable under section 202(x).’’.
(2) Section 226A of such Act (42 U.S.C. 426–
1) is amended by adding at the end the following
new subsection:
‘‘(d) The requirements of subsection (a)(1) shall not
be treated as met with respect to any individual for any
month if a monthly benefit to which such individual is en-
titled under section 202 or 223 for such month is not pay-
able under section 202(x).’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to benefits for months
commencing after 90 days after the date of the enactment
of this Act and with respect to items and services provided
after such 90-day period.
Passed the House of Representatives May 12, 1994.
Attest:
Clerk.