‘‘(i) For purposes of this section, each person whose
benefit for any month is not payable by reason of para-
graph (1) of section 225(c) (and is not terminated by rea-
son of paragraph (4) or (8) of section 225(c)) shall be
treated as entitled to such benefit for such month if such
person would be entitled to such benefit for such month
in the absence of such section.’’.paragraph (other than
paragraphs (6)(C) and (8) of section 225(c) of the Social
Security Act added by this paragraph) shall apply with
respect to benefits based on disability (as defined in sec-
tion 225(c)(9) of the Social Security Act, added by this
section) of individuals becoming entitled to such benefits
for months beginning after 180 days after the date of the
enactment of this Act. Section 225(c)(6)(C) of the Social
Security Act shall take effect 180 days after the date of
the enactment of this Act. Section 225(c)(8) of the Social
Security Act (added by this section) shall apply with re-
spect to benefits for months ending after 180 days after
the date of the enactment of this Act, and, for purposes
of such section 225(c)(8), in the case of any individual
entitled to benefits based on disability (as so defined) 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.
(4) IRRELEVANCE OF LEGALITY OF SERVICES
PERFORMED IN DETERMINING SUBSTANTIAL GAIN-
FUL ACTIVITY.—
(A) IN
GENERAL.—Section 223(d)(4) of
such Act (42 U.S.C. 423(d)(4)) is amended—
(i) by inserting ‘‘(A)’’ after ‘‘(4)’’; and
(ii) by adding at the end the following
new subparagraph:
‘‘(B) In determining under subparagraph (A) when
services performed or earnings derived from services dem-
onstrate an individual’s ability to engage in substantial
gainful activity, the Secretary apply the criteria described
in subparagraph (A) with respect to services performed
by any individual without regard to the legality of such
services.’’.
(B) EFFECTIVE DATE.—The amendments
made by this paragraph shall take effect on the
date of the enactment of this Act.
(b) AMENDMENTS RELATING TO SUPPLEMENTAL SE-
CURITY INCOME BENEFITS UNDER TITLE XVI OF THE
SOCIAL SECURITY ACT.—
(1) REQUIRED PAYMENT OF BENEFITS TO REP-
RESENTATIVE PAYEES.—
(A) IN GENERAL.—Section 1631(a)(2)(A)
of 
the 
Social 
Security 
Act 
(42 
U.S.C.
1383(a)(2)(A)) is amended—
(i) in clause (ii), by adding at the end
the following: ‘‘In the case of an individual
entitled to benefits under this title by rea-
son of disability, if alcoholism or drug ad-
diction is a contributing factor material to
the Secretary’s determination that the in-
dividual is disabled, the payment of such
benefits to a representative payee shall be
deemed to serve the interest of such indi-
vidual under this title.’’; and
(ii) in clause (iii), by striking ‘‘to the
individual or eligible spouse or to an alter-
native representative payee of the individ-
ual or eligible spouse’’ and inserting ‘‘to an
alternative representative payee of the indi-
vidual or eligible spouse or, if the interest
of the individual under this title would be
served thereby, to the individual or eligible
spouse’’.
(B) CONFORMING
AMENDMENT.—Section
1631(a)(2)(B)(viii)(II) of such Act (42 U.S.C.
1383(a)(2)(B)(viii)(II)) is amended by striking
‘‘15 years’’ and all that follows and inserting
‘‘of 15 years, or (if alcoholism or drug addiction
is a contributing factor material to the Sec-
retary’s determination that the individual is dis-
abled) is entitled to benefits under this title by
reason of disability.’’.
(C) EFFECTIVE DATE.—The amendments
made by subparagraphs (A) and (B) shall apply
with respect to benefits for months beginning
after 180 days after the date of the enactment
of this Act.
(2) INCREASED
RELIANCE
ON
PROFESSIONAL
REPRESENTATIVE PAYEES.—
(A) PREFERENCE REQUIRED FOR ORGANI-
ZATIONAL REPRESENTATIVE PAYEES.—Section
1631(a)(2)(B) 
of 
such 
Act 
(42 
U.S.C.
1383(a)(2)(B)) is amended—
(i) by redesignating clauses (vii)
through (xii) as clauses (viii) through
(xiii), respectively;
(ii) by inserting after clause (vi) the
following:
‘‘(vii) In the case of an 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 the individual is disabled,
when selecting 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.’’;
(iii) in clause (viii) (as so redesig-
nated), by striking ‘‘clause (viii)’’ and in-
serting ‘‘clause (ix)’’;
(iv) in clause (ix) (as so redesignated),
by striking ‘‘(vii)’’ and inserting ‘‘(viii)’’;
(v) in clause (xiii) (as so redesig-
nated)—
(I) by striking ‘‘(xi)’’ and insert-
ing ‘‘(xii)’’; and
(II) by striking ‘‘(x)’’ and insert-
ing ‘‘(xi)’’.