computation is made, for monthly benefits be-
ginning with benefits for January of—’’; and
(B) by adding at the end the following:
‘‘(i) the second year following the year with
respect to which the recomputation is made, in
any such case in which the individual has at-
tained age 65 as of the end of the year preced-
ing the year with respect to which the recom-
putation is made and the year with respect to
which the recomputation is made would not be
substituted in recomputation under this sub-
section for a benefit computation year in which
no wages or self-employment income have been
credited previously to such individual, or
‘‘(ii) the first year following the year with
respect to which the recomputation is made, in
any other such case; or’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to recomputations of
primary insurance amounts based on wages paid and self
employment income derived after 1994 and with respect
to benefits payable after December 31, 1995.
SEC. 6. ELIMINATION OF THE ROLE OF THE SOCIAL SECU-
RITY ADMINISTRATION IN PROCESSING AT-
TORNEY FEES.
(a) ACTIONS BEFORE THE COMMISSIONER.—Section
206(a) of the Social Security Act (42 U.S.C. 406(a)) is
amended—
(1) in paragraph (1), by striking the fourth and
fifth sentences;
(2) by striking paragraphs (2), (3), and (4);
(3) by inserting after paragraph (1) the follow-
ing new paragraph:
‘‘(2)(A) No person, agent, or attorney may charge in
excess of $4,000 (or, if higher, the amount set pursuant
to subparagraph (B)) for services performed in connection
with any claim before the Commissioner under this title,
or for services performed in connection with concurrent
claims before the Commissioner under this title and title
XVI.
‘‘(B) The Commissioner may increase the dollar
amount under subparagraph (A) whenever the Commis-
sioner determines that such an increase is warranted. The
Commissioner shall publish any such increased amount in
the Federal Register.
‘‘(C) Any agreement in violation of this paragraph
shall be void.
‘‘(D) Whenever the Commissioner makes a favorable
determination in connection with any claim for benefits
under this title by a claimant who is represented by a per-
son, agent, or attorney, the Commissioner shall provide
the claimant and such person, agent, or attorney a written
notice of—
‘‘(i) the determination,
‘‘(ii) the dollar amount of any benefits payable
to the claimant, and
‘‘(iii) the maximum amount under paragraph
(2) that may be charged for services performed in
connection with such claim.’’; and
(4) by redesignating paragraph (5) as para-
graph (3).
(b) JUDICIAL PROCEEDINGS.—Section 206(b)(1) of
such Act (42 U.S.C. 406(b)(1)) is amended—
(1) in the first sentence of subparagraph (A),
by striking ‘‘representation,’’ and all that follows
and inserting the following: ‘‘representation. In de-
termining a reasonable fee, the court shall take into
consideration the amount of the fee, if any, that
such attorney, or any other person, agent, or attor-
ney, may charge the claimant for services performed
in connection with the claimant’s claim when it was
pending before the Commissioner.’’;
(2) in the second sentence of subparagraph (A),
by striking ‘‘or certified for payment’’;
(3) by striking subparagraph (B); and
(4) by striking ‘‘(b)(1)(A)’’ and inserting
‘‘(b)(1)’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 223(h)(3) of such Act (42 U.S.C.
423(h)(3)) is amended by striking all that follows
‘‘obtained)’’ and inserting a period.
(2) Section 1127(a) of such Act (42 U.S.C.
1320a–6(a)) is amended by striking the last sen-
tence.
(3) Section 1631(d)(2)(A) of such Act (42
U.S.C. 1383(d)(2)(A)) is amended—
(A) by striking ‘‘(other than paragraph (4)
thereof)’’; and
(B) by striking all that follows ‘‘title II’’
and inserting a period.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to—
(1) any claim for benefits under the old-age,
survivors, and disability insurance program under
title II of the Social Security Act, the supplemental
security income program under title XVI of such
Act, or the black lung program under part B of the
Black Lung Benefits Act that is initially filed on or
after the 60th day following the date of the enact-
ment of this Act, and
(2) any claim for such benefits filed before such
60th day by a claimant who is first represented by
any person, agent, or attorney in connection with
such claim on or after such 60th day.
SEC. 7. DENIAL OF DISABILITY BENEFITS TO DRUG AD-
DICTS AND ALCOHOLICS.
(a) AMENDMENTS RELATING TO TITLE II DISABIL-
ITY BENEFITS.—
(1) IN GENERAL.—Section 223(d)(2) of the So-
cial Security Act (42 U.S.C. 423(d)(2)) is amended
by adding at the end the following:
‘‘(C) An individual shall not be considered to be
disabled for purposes of this title if alcoholism or
drug addiction would (but for this subparagraph) be
a contributing factor material to the Commissioner’s
determination that the individual is disabled.’’.
(2) 
REPRESENTATIVE
PAYEE
REQUIRE-
MENTS.—
(A) Section 205(j)(1)(B) of such Act (42
U.S.C. 405(j)(1)(B)) is amended to read as fol-
lows:
‘‘(B) In the case of an individual entitled to benefits
based on disability, the payment of such benefits shall be
made to a representative payee if the Commissioner of So-
cial Security determines that such payment would serve
the interest of the individual because the individual also
has an alcoholism or drug addiction condition (as deter-
mined by the Commissioner) that prevents the individual
from managing such benefits.’’.
(B) Section 205(j)(2)(C)(v) of such Act
(42 U.S.C. 405(j)(2)(C)(v)) is amended by
striking ‘‘entitled to benefits’’ and all that fol-
lows through ‘‘under a disability’’ and inserting
‘‘described in paragraph (1)(B)’’.
(C) Section 205(j)(2)(D)(ii)(II) of such
Act (42 U.S.C. 405(j)(2)(D)(ii)(II)) is amended
by striking all that follows ‘‘15 years, or’’ and
inserting ‘‘described in paragraph (1)(B).’’.
(D) Section 205(j)(4)(A)(ii)(II) (42 U.S.C.
405(j)(4)(A)(ii)(II)) is amended by striking
‘‘entitled to benefits’’ and all that follows
through ‘‘under a disability’’ and inserting ‘‘de-
scribed in paragraph (1)(B)’’.
(3) TREATMENT REFERRALS FOR INDIVIDUALS
WITH AN ALCOHOLISM OR DRUG ADDICTION CONDI-
TION.—Section 222 of such Act (42 U.S.C. 422) is
amended by adding at the end the following new
subsection:
‘‘Treatment Referrals for Individuals with an Alcoholism
or Drug Addiction Condition
‘‘(e) In the case of any individual whose benefits
under this title are paid to a representative payee pursu-
ant to section 205(j)(1)(B), the Commissioner of Social
Security shall refer such individual to the appropriate
State agency administering the State plan for substance
abuse treatment services approved under subpart II of
part B of title XIX of the Public Health Service Act (42
U.S.C. 300x–21 et seq.).’’.
(4) CONFORMING AMENDMENT.—Subsection (c)
of section 225 of such Act (42 U.S.C. 425(c)) is re-
pealed.
(5) EFFECTIVE DATES.—
(A) The amendments made by paragraphs
(1) and (4) shall apply with respect to monthly
insurance benefits under title II of the Social
Security Act based on disability for months be-
ginning after the date of the enactment of this
Act, except that, in the case of individuals who
are entitled to such benefits for the month in
which this Act is enacted, such amendments
shall apply only with respect to such benefits
for months beginning on or after January 1,
1997.
(B) The amendments made by paragraphs
(2) and (3) shall apply with respect to benefits
for which applications are filed on or after the
date of the enactment of this Act.
(C) If an individual who is entitled to
monthly insurance benefits under title II of the
Social Security Act based on disability for the
month in which this Act is enacted and whose
entitlement to such benefits would terminate by
reason of the amendments made by this sub-
section reapplies for benefits under title II of
such Act (as amended by this Act) based on
disability within 120 days after the date of the
enactment of this Act, the Commissioner of So-
cial Security shall, not later than January 1,
1997, complete the entitlement redetermination
with respect to such individual pursuant to the
procedures of such title.
(b) AMENDMENTS RELATING TO SSI BENEFITS.—
(1) IN GENERAL.—Section 1614(a)(3) of the
Social Security Act (42 U.S.C. 1382c(a)(3)) is
amended by adding at the end the following:
‘‘(I) Notwithstanding subparagraph (A), an individ-
ual shall not be considered to be disabled for purposes of
this title if alcoholism or drug addiction would (but for
this subparagraph) be a contributing factor material to
the Commissioner’s determination that the individual is
disabled.’’.
(2) 
REPRESENTATIVE
PAYEE
REQUIRE-
MENTS.—
(A) Section 1631(a)(2)(A)(ii)(II) of such
Act (42 U.S.C. 1383(a)(2)(A)(ii)(II)) is amend-
ed to read as follows:
‘‘(II) In the case of an individual eligible for benefits
under this title by reason of disability, the payment of
such benefits shall be made to a representative payee if
the Commissioner of Social Security determines that such
payment would serve the interest of the individual because
the individual also has an alcoholism or drug addiction
condition (as determined by the Commissioner) that pre-
vents the individual from managing such benefits.’’.
(B) Section 1631(a)(2)(B)(vii) of such Act
(42 U.S.C. 1383(a)(2)(B)(vii)) is amended by
striking ‘‘eligible for benefits’’ and all that fol-
lows through ‘‘is disabled’’ and inserting ‘‘de-
scribed in subparagraph (A)(ii)(II)’’.
(C) Section 1631(a)(2)(B)(ix)(II) of such
Act 
(42 
U.S.C. 
1383(a)(2)(B)(ix)(II)) 
is
amended by striking all that follows ‘‘15 years,
or’’ and inserting ‘‘described in subparagraph
(A)(ii)(II).’’.
(D) Section 1631(a)(2)(D)(i)(II) of such
Act (42 U.S.C. 1383(a)(2)(D)(i)(II)) is amend-
ed by striking ‘‘eligible for benefits’’ and all
that follows through ‘‘is disabled’’ and inserting
‘‘described in subparagraph (A)(ii)(II)’’.
(3) TREATMENT
SERVICES
FOR
INDIVIDUALS
WITH A SUBSTANCE ABUSE CONDITION.—Title XVI
of such Act (42 U.S.C. 1381 et seq.) is amended by
adding at the end the following new section:
‘‘TREATMENT SERVICES FOR INDIVIDUALS WITH A
SUBSTANCE ABUSE CONDITION
‘‘SEC. 1636. In the case of any individual whose bene-
fits under this title are paid to a representative payee pur-
suant to section 1631(a)(2)(A)(ii)(II), the Commissioner
of Social Security shall refer such individual to the appro-
priate State agency administering the State plan for sub-
stance abuse treatment services approved under subpart
II of part B of title XIX of the Public Health Service Act
(42 U.S.C. 300x–21 et seq.).’’.
(4) CONFORMING AMENDMENTS.—
(A) Section 1611(e) of such Act (42
U.S.C. 1382(e)) is amended by striking para-
graph (3).
(B) Section 1634 of such Act (42 U.S.C.
1383c) is amended by striking subsection (e).
(5) EFFECTIVE DATES.—
(A) The amendments made by paragraphs
(1) and (4) shall apply with respect to supple-
mental security income benefits under title XVI
of the social Security Act based on disability for
months beginning after the date of the enact-
ment of this Act, except that, in the case of in-
dividuals who are eligible for such benefits for
the month in which this Act is enacted, such
amendments shall apply only with respect to
such benefits for months beginning on or after
January 1, 1997.
(B) The amendments made by paragraphs
(2) and (3) shall apply with respect to supple-
mental security income benefits under title XVI
of the Social Security Act for which applica-
tions are filed on or after the date of the enact-
ment of this Act.
(C) If an individual who is eligible for sup-
plemental security income benefits under title