(B) AVAILABILITY
OF
PUBLIC
AGENCIES
AND
OTHER
QUALIFIED
ORGANIZATIONS
TO
SERVE AS REPRESENTATIVE PAYEES.—Section
1631(a)(2)(D) 
of 
such 
Act 
(42 
U.S.C.
1383(a)(2)(D)) is amended—
(i) in clause (i)—
(I) by striking ‘‘exceed the lesser
of—’’ and inserting ‘‘exceed—’’; and
(II) by striking subclauses (I)
and (II) and inserting the following:
‘‘(I) in any case in which an individual is enti-
tled to benefits under this title by reason of disabil-
ity and alcoholism or drug addiction is a contribut-
ing factor material to the Secretary’s determination
that the individual is disabled, 10 percent of the
monthly benefit involved, or
‘‘(II) in any other case, the lesser of—
‘‘(aa) 10 percent of the monthly benefit in-
volved, or
‘‘(bb) $25.00 per month.’’;
(ii) in clause (ii)—
(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 inserting a comma after
‘‘service agency’’;
(III) by adding ‘‘and’’ at the end
of subclause (I); and
(IV) in subclause (II)—
(aa) by adding ‘‘and’’ at the
end of item (aa);
(bb) by striking ‘‘; and’’ at
the end of item (bb) and insert-
ing a period; and
(cc) by striking item (cc);
and
(iii) by striking clause (iv), effective
July 1, 1994.
(3) NONPAYMENT OR TERMINATION OF BENE-
FITS.—
(A) IN GENERAL.—Section 1611(e)(3) of
such Act (42 U.S.C. 1382(e)(3)), is amended
by redesignating subparagraph (B) as subpara-
graph (C) and by inserting after subparagraph
(A) the following:
‘‘(B)(i) Notwithstanding any other provision of this
title, in the case of any individual entitled to benefits
under this title solely by reason of disability, if alcoholism
or drug addiction is a contributing factor material to the
Secretary’s determination that such individual is disabled
and such individual is determined by the Secretary not
to be in compliance with the requirements of this subpara-
graph for a month, such benefits shall be suspended for
a period commencing with such month and ending with
the month preceding the first month, after the determina-
tion of noncompliance, in which such individual dem-
onstrates that he or she has reestablished and maintained
compliance with such requirements for the applicable pe-
riod specified in clause (iii).
‘‘(ii)(I) An individual described in clause (i) is in com-
pliance with the requirements of this subparagraph for a
month if the individual in such month undergoes any med-
ical or psychological treatment that may be appropriate,
for the individual’s condition diagnosed as substance
abuse or alcohol abuse and for the stage of the individual’s
rehabilitation, at an institution or facility approved for
purposes of this subparagraph by the Secretary, and com-
plies in such month with the terms, conditions, and re-
quirements of such treatment and with requirements im-
posed by the Secretary under subparagraph (C).
‘‘(II) An individual described in clause (i) shall not
be determined to be not in compliance with the require-
ments of this subparagraph for a month if access by such
individual to such treatment is not reasonably available
for the month, as determined under regulations of the Sec-
retary.
‘‘(iii) The applicable period specified in this clause
is—
‘‘(I) 2 consecutive months, in the case of a 1st
determination that an individual is not in compliance
with the requirements of this subparagraph;
‘‘(II) 3 consecutive months, in the case of the
2nd such determination with respect to the individ-
ual; or
‘‘(III) 6 consecutive months, in the case of the
3rd or subsequent such determination with respect
to the individual.
‘‘(iv) An individual shall not be an eligible individual
for purposes of this title for the 12-month period that be-
gins with the end of any period of 12 consecutive months
for which the benefits of the individual under this title
have been suspended by reason of this subparagraph.
‘‘(v) In the case of any individual entitled to benefits
under this title by reason of disability, if alcoholism or
drug addiction is a contributing factor material to the Sec-
retary’s determination that such individual is disabled,
such individual may not be entitled to such benefits by
reason of disability (or any past-due benefits under such
entitlement) for any month after the 36-month period be-
ginning with such individual’s first month of such entitle-
ment, notwithstanding section 1619(a).
‘‘(vi)(I) The Secretary shall not, in a month, pay to
an individual described in clause (i) benefits under this
title the payment of which is past due, in an amount that
exceeds the amount of benefits under this title which are
payable to the individual for the month and the payment
of which is not past due.
‘‘(II) As used in subclause (I) of this clause, the term
‘benefits under this title’ includes supplementary pay-
ments of the type described in section 1616(a) and pay-
ments pursuant to an agreement entered into under sec-
tion 212(a) of Public Law 93–66.’’.
(B) REFERRAL, MONITORING, AND TREAT-
MENT.—Section 1611(e)(3)(C) of such Act (42
U.S.C. 1382(e)(3)(C)), as so designated by the
amendment made by subparagraph (A) of this
paragraph, is amended—
(i) by adding at the end the following:
‘‘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.’’;
(ii) by inserting ‘‘(i)’’ after ‘‘(C)’’; and
(iii) by adding after and below the end
following:
‘‘(ii) The Secretary, in consultation with drug and al-
cohol 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-
paragraph; and
‘‘(II) establishing guidelines to be used to re-
view and evaluate their compliance, including meas-
ures of the progress of participants in such pro-
grams.
‘‘(iii)(I) For purposes of carrying out the require-
ments of clauses (i) and (ii), the Secretary shall establish
in each State a referral and monitoring agency for the
State.
‘‘(II) Each referral and monitoring agency for a State
shall—
‘‘(aa) identify appropriate placements, for indi-
viduals residing in the State who are entitled to ben-
efits under this title by reason of disability and with
respect to whom alcoholism or drug addiction is a
contributing factor material to the Secretary’s deter-
mination that they are disabled, where they may ob-
tain treatment described in subparagraph (B)(ii)(I);
‘‘(bb) refer such individuals to such placements
for such treatment; and
‘‘(cc) monitor compliance with the requirements
of subparagraph (B) by individuals who are referred
by the agency to such placements, and promptly re-
port to the Secretary any failure to comply with
such requirements.’’.
(C) PRESERVATION
OF
MEDICAID
BENE-
FITS.—Section 1634 of such Act (42 U.S.C.
13283c) is amended by adding at the end the
following:
‘‘(e) Each person to whom benefits under this title
by reason of disability are not payable for any month sole-
ly by reason of section 1611(e)(3)(B) shall be treated, for
purposes of title XIX, as receiving benefits under this title
for such month.’’.
(D) CONFORMING AMENDMENTS.—Section
1611(e)(3) of such Act (42 U.S.C. 1382(e)(3)),
as amended by subparagraphs (A) and (B) of
this paragraph, is amended—
(i) in subparagraph (A), by striking
‘‘(B)’’ and inserting ‘‘(C)’’; and
(ii) in subparagraph (C), by inserting
‘‘or (B)’’ after ‘‘(A)’’.
(E) EFFECTIVE DATE.—
(i) IN GENERAL.—Except as provided
in clauses (ii) and (iii), the amendments
made by this paragraph shall apply with
respect to benefits for months beginning
after 180 days after the date of the enact-
ment of this Act.
(ii) TIME
LIMITATION
ON
BENE-
FITS.—Section 1611(e)(3)(B)(v) of the So-
cial Security Act (as added by the amend-
ment made by subparagraph (A) of this
paragraph) shall apply with respect to ben-
efits for months ending after 180 days
after the date of the enactment of this Act,
and, for purposes of such section, in the
case of any individual entitled to benefits
by reason of disability for the first month
ending after 180 days after the date of the
enactment of this Act, such month shall be
treated as such individual’s first month of
entitlement to such benefits.
(iii) ESTABLISHMENT
OF
REFERRAL
AND
MONITORING
AGENCIES.—Section
1611(e)(3)(C)(iii) of the Social Security
Act (as added by the amendment made by
subparagraph (B)(iii) of this paragraph)
shall take effect 180 days after the date of
the enactment of this Act.
(4) IRRELEVANCE OF LEGALITY OF SUBSTAN-
TIAL GAINFUL ACTIVITY.—
(A) IN GENERAL.—Section 1614(a)(3)(D)
of such Act (42 U.S.C. 1382c(a)(3)(D)) is
amended by adding at the end the following:
‘‘The Secretary shall make determinations
under this title with respect to substantial gain-
ful activity, without regard to the legality of the
activity.’’.
(B) EFFECTIVE
DATE.—The amendment
made by subparagraph (A) shall take effect on
the date of the enactment of this Act.
(c) EFFECTIVE DATE.—The amendments made by
the preceding provisions of this section shall apply to bene-
fits payable for months beginning 180 or more days after
the date of the enactment of this Act.
(d) DEMONSTRATION PROJECTS.—
(1) IN GENERAL.—The Secretary of Health and
Human Services shall develop and carry out dem-
onstration projects designed to explore innovative re-
ferral, monitoring, and treatment approaches with
respect to—
(A) individuals who are entitled to disabil-
ity insurance benefits or child’s, widow’s, or
widower’s insurance benefits based on disability
under title II of the Social Security Act, and
(B) individuals who are eligible for supple-
mental security income benefits under title XVI
of such Act based solely on disability,
in cases in which alcoholism or drug addiction is a
contributing factor material to the Secretary’s deter-
mination that individuals are under a disability.
(2) SCOPE.—The demonstration projects devel-
oped under paragraph (1) shall be of sufficient scope
and shall be carried out on a wide enough scale to
permit a thorough evaluation of the alternative ap-
proaches under consideration while giving assurance
that the results derived from the projects will obtain
generally in the operation of the programs involved
without committing such programs to the adoption
of any particular system either locally or nationally.
(3) FINAL REPORT.—The Secretary shall sub-
mit to the Committee on Ways and Means of the
House of Representatives and the Committee on Fi-
nance of the Senate no later than December 31,