An Act to amend the Social Security Act to expedite the holding of hearings under titles II, XVI, and XVIII by establishing uniform review procedures under such titles, and for other purposes.
PL 94-202 (H.R.10727), enacted 01/02/1976

PUBLIC LAW 94-202—JAN. 2, 1976 
89 STAT. 1135 
Public Law 94-202 
94th Congress 
An Act 
To amend the Social Security Act to expedite the holding of hearings under titles 
II, XVI, and XVIII by establishing uniform review procedures under such 
titles, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That section 1631 (c) 
of the Social Security Act is amended to read as follows: 
"HEARINGS AND REVIEW 
"(c)(1) The Secretary is directed to make findings of fact, and 
decisions as to the rights of any individual applying for payment 
under this title. The Secretary sihall provide reasonable notice and 
opportunity for a hearing to any individual who is or claims to be 
an eligible individual or eligible spouse and is in disagreement with 
any determination under this title with respect to eligibility of such 
individual for benefits, or the amount of such individual's benefits, if 
such individual requests a hearing on the matter in disagreement 
within sixty days after notice of such determination is received, and, 
if a hearing is held, shall, on the basis of evidence adduced at the 
hearing affirm, modify, or reverse his findings of fact and such deci-
sion. The Secretary is further authorized, on his own motion, to hold 
such hearings and to conduct su<ih investigations and other proceedings 
as he may deem necessary or proper for the administration of this title. 
In the coui-se of any hearing, investigation, or other proceeding, he 
may administer oaths and affirmations, examine witnesses, and receive 
evidence. Evidence may be received at any hearing before the Secretary 
even though inadmissible under the rules of evidence applicable to 
court procedure. 
"(2) Determination on the basis of such hearing, except to the 
extent that the matter in disagreement involves a disability (within 
the meaning of section 1614(a) (3)), shall be made within ninety days 
after the individual requests the hearing as provided in paragraph (1). 
" (3) The final determination of the Secretary after a hearing under 
paragraph (1) shall be subject to judicial review as provided in section 
205 (g) to the same extent as the Secretary's final determinations under 
section 205.". 
SEC. 2. Section 1631(d) of the Social Security Act is amended by 
striking out paragraph (2), and by redesignating paragraph (3) as 
paragraph (2). 
SEC. 3. The persons appointed under section 1631(d)(2) of the 
Social Security Act (as in effect prior to the enactment of this Act) 
to serve as hearing examiners in hearings under section 1631(c) of 
such Act may conduct hearings under titles II, X V I , and X V I I I of 
the Social Security Act if the Secretary of Health, Education, and 
Welfare finds it will promote the achievement of the objectives of 
such titles, notwithstanding the fact that their appointments were 
made without meeting the requirements for hearing 
examiners 
appointed under section 3105 of title 5, United States Code; but their 
appointments shall terminate not later than at the close of the period 
ending December 31,1978, and during that period they shall be deemed 
Jan. 2, 1976 
[H.R. 10727] 
Social Security 
Act, 
amendments. 
42 use 1383. 
42 use 1382c. 
Judicial review. 
42 use 405. 
42 use 1383. 
42 use 1383 
note. 
42 use 401, 
1381, 1395. 
89 STAT. 1136 
PUBLIC LAW 94-202—JAN. 2, 1976 
5 use 551. 
42 use 405. 
Effective date. 
42 u s e 405 note. 
West Virginia 
agreement. 
42 u s e 418 note. 
42 u s e 418. 
to be hearing examiners appointed under such section 3105 and sub-
ject as such to subchapter II of chapter 5 of title 5, United States 
Code, to the second sentence of such section 3105, and to all of the 
other provisions of such title 5 which apply to hearing examiners 
appointed under such section 3105. 
SEC. 4. The third sentence of section 205(b) of the Social Security 
Act is amended to read as follows: "Any such request with respect to 
such a decision must be filed within sixty days after notice of such 
decision is received by the individual making such request.". 
SEC. 5. The amendments made by the first two sections of this Act, 
and the provisions of section 3, shall take effect on the date of the 
enactment of this Act. The amendment made by section 4 of this Act 
shall apply with respect to any decision or determination of which 
notice is received, by the individual requesting the hearing involved, 
after February 29, 1976. The amendment made by the first section of 
this Act, to the extent that it changes the period within which hear-
ings must be requested, shall apply with respect to any decision or 
determination of which notice is received, by the individual requesting 
the hearing involved, on or after the date of the enactment of this Act. 
SEC. 6. (a) Notwithstanding the provisions of subsection (d)(5)(A) 
of section 218 of the Social Security Act and the references thereto in 
subsections (d) (1) and (d) (3) of such section 218, the agreement with 
the State of West Virginia heretofore entered into pursuant to such 
section 218 may, at any time prior to 1977, be modified pursuant to 
subsection (c) (4) of such section 218 so as to apply to services per-
formed in policemen's or firemen's positions covered by a retirement 
system on the date of the enactment of this Act by individuals as 
employees of any class III or class IV municipal corporation (as 
defined in or under the laws of the State) if the State of West Virginia 
has at any time prior to the date of the enactment of this Act paid to 
the Secretary of the Treasury, with respect to any of the services per-
formed in such positions by individuals as employees of such municipal 
corporation, the sums prescribed pursuant to subsection (e) (1) of such 
section 218. For purposes of this subsection, a retirement system which 
covers positions of policemen or firemen, or both, and other positions, 
shall, if the State of West Virginia so desires, be deemed to be a sepa-
rate retirement system with respect to the positions of such policemen 
or firemen, or both, as the case may be. 
(b) Notwithstanding the provisions of subsection (f) of section 218 
of the Social Security Act, any modification in the agi-eement with the 
State of West Virginia under subsection (a) of this section, to the 
extent it involves services performed by individuals as employees of 
any class III or class IV municipal corporation, may be made effective 
with respect to— 
(1) all services performed by such individual, in any police-
men's or firemen's position to which the modification relates, on 
or after the date of the enactment of this Act; and 
(2) all services performed by such individual in such a position 
before such date of enactment with respect to which the State 
of West Virginia has paid to the Secretary of the Treasury the 
sums prescribed pursuant to subsection (e) (1) of such section 218 
at the time or times established pui-suant to such subsection 
(e) (1), if and to the extent that— 
(A) no refund of the sums so paid has been obtained, or 
(B) a I'efund of part or all of the sums so paid has been 
obtained but the State of West Virginia repays to the Secre-
tary of the Treasury the amount of such refund within ninety 
PUBLIC LAW 94-202—JAN. 2, 1976 
89 STAT. 1137 
days after the date that the modification is agreed to by the 
State and the Secretary of Health, Education, and Welfare. 
SEC. 7. Notwithstanding any other provision of law, no regulation 
and no modification of any regulation, promulgated by the Secretary 
of Health, Education, and Welfare, after the date of enactment of this 
Act, shall become effective prior to the end of the eighteen-month 
period which begins with the first day of the first calendar month 
which begins after the date on which such regulation or modification 
of a regulation is published in the Federal Register, if and insofar as 
such regulation or modification of a regulation pertains, directly or 
indirectly, to the frequency or due dates for payments and reports 
required under section 218 (e) of the Social Security Act. 
SEC. 8. (a) This section may be cited as the "Combined Old-Age, 
Survivors, and Disability Insurance-Income Tax Reporting Amend-
ments of 1975". 
(b) Title II of the Social Security Act is amended by adding after 
section 231 the following section: 
a 
PROCESSING o r TAX DATA 
"SEC. 232. The Secretary of the Treasury shall make available infor-
mation returns filed pursuant to part III of subchapter A of chapter 61 
of subtitle F of the Internal Revenue Code of 1954, to the Secretary 
for the purposes of this title and title XL The Secretary and the Sec-
retary of the Treasury are authorized to enter into an agreement for 
the processing by the Secretary of information contained in returns 
filed pursuant to part III of subchapter A of chapter 61 of subtitle F 
of the Internal Revenue Code of 1954. Notwithstanding the provisions 
of section 6103 (a) of the Internal Revenue Code of 1954, the Secretary 
of the Treasury shall make available to the Secretary such documents 
as may be agreed upon as being necessary for purposes of such proc-
essing. The Secretary shall process any withholding tax statements or 
other documents made available to him by the Secretary of the Treas-
ury pursuant to this section. Any agreement made pursuant to this 
section shall remain in full force and effect until modified or otherwise 
changed by mutual agreement of the Secretary and the Secretary of 
the Treasury.". 
(c) Section 232 of the Social Security Act, as added by subsection 
(b) of this section, shall be effective with respect to statements report-
ing income received after 1977. 
(d)(1) Section 201(g)(1) of such Act is amended to read as 
follows: 
"(g) (1) (A) The Managing Trustee of the Trust Funds (which for 
purposes of this paragraph shall include also the Federal Hospital 
Insurance Trust Fund and the Federal Supplementary Medical Insur-
ance Trust Fund established by title XVIII) is directed to pay from 
the Trust Funds into the Treasury— 
" (i) the amounts estimated by him and the Secretary of Health, 
Education, and Welfare which will be expended, out of moneys 
appropriated from the general fund in the Treasury, during a 
three-month period by the Department of Health, Education, and 
Welfare and the Treasury Department for the administration of 
titles II, XVI, and XVIII of this Act and subchapter E of chap-
ter 1 and subchapter A of chapter 9 of the Internal Revenue Code 
of 1939, and chapters 2 and 21 of the Internal Revenue Code of 
1954, less 
Regulation, 
publication in 
Federal Register. 
42 u s e 405a. 
42 u s e 418. 
Combined Old-
Age, Survivors, 
and Disability 
Insurance-
Income Tax 
Reporting 
Amendments of 
1975. 
42 u s e 432 note. 
42 u s e 432. 
26 u s e 6031. 
42 u s e 1301. 
26 u s e 6103. 
42 u s e 432 note. 
42 u s e 401. 
42 u s e 1395. 
42 u s e 401. 
1381. 
26 u s e 641., 
3101. 
26 u s e 1401, 
3101. 
89 STAT. 1138 
PUBLIC LAW 94-202—JAN. 2, 1976 
"(ii) the amounts estimated (pursuant to the method pre-
scribed by the Board of Trustees under paragraph (4) of this 
subsection) by the Secretary of Health, Education, and Welfare 
which will be expended, out of moneys made available for expend-
itures from the Trust Funds, during such three-month period 
to cover the cost of carrying out the functions of the Department 
Ante, p. 1137. 
of Health, Education, and Welfare, specified in section 232, which 
relate to the administration of provisions of the Internal Revenue 
Code of 1954 other than those referred to in clause (i). 
Such payments shall be carried into the Treasury as the net amount of 
repayments due the general fund account for reimbursement of 
expenses incurred in connection with the administration of titles II, 
42 use 401, 
XVI, and XVIII of this Act and subchapter E of chapter 1 and sub-
o^^ncr^^/n' 
chapter A of chapter 9 of the Internal Revenue Code of 1939, and 
3101 
chapters 2 and 21 of the Internal Revenue Code of 1954. A final 
26 use 1401 
accounting of such payments for any fiscal year shall be made at the 
3J01. 
' 
earliest practicable date after the close thereof. There are hereby 
authorized to be made available for expenditure, out of any or all of 
the Trust Funds, such amounts as the Congress may deem appropriate 
to pay the costs of the part of the administration of this title, title 
XVI, and title XVIII for which the Secretary of Health, Education, 
and Welfare is responsible and of carrying out the functions of the 
Department of Health, Education, and Welfare, specified in section 
232, which relate to the administration of provisions of the Internal 
Revenue Code of 1954 other than those referred to in clause (i) of the 
first sentence of this subparagraph. 
"(B) After the close of each fiscal year the Secretary of Health, 
Education, and Welfare shall determine the portion of the costs, 
incurred during such fiscal year, of administration of this title, title 
XVI, and title XVIII and of carrying out the functions of the Depart-
ment of Health, Education, and Welfare, specified in section 232, which 
relate to the administration of provisions of the Internal Revenue Code 
of 1954 (other than those referred to in clauses (i) of the first sentence 
of subparagraph (A)), which should have been iDome by the general 
fund in the Treasury and the portion of such costs which should have 
been borne by each of the Trust Funds; except that the determination 
of the amounts to be borne by the general fund in the Treasury with 
respect to expenditures incurred in carrying out such functions speci-
fied in section 232 shall be made pursuant to the method prescribed 
by the Board of Trustees under paragraph (4) of this subsection. After 
such determination has been made, the Secretary of Health, Education, 
and Welfare shall certify to the Managing Trustee the amounts, if any, 
which should be transferred from one to any of the other of such Trust 
Funds and the amounts, if any, which should be transferred between 
the Trust Funds (or one of the Trust Funds) and the general fund 
in the Treasury, in order to insure that each of the Trust Funds and 
the general fund in the Treasury have borne their proper share of 
the costs, incurred during such fiscal year, for the part of the admin-
istration of this title, title XVI, and title XVIII for which the Secre-
tary of Health, Education, and Welfare is responsible and of carrying 
out the functions of the Department of Health, Education, and 
Welfare, specified in section 232, which relate to the administration of 
provisions of the Internal Revenue Code of 1954 (other than those 
referred to in clause (i) of the first sentence of subparagraph (A)). 
The Managing Trustee is authorized and directed to transfer any such, 
amounts in accordance with any certification so made.". 
PUBLIC LAW 94-202—JAN. 2, 1976 
89 STAT. 1139 
(2) Subsection (g) of such section is further amended by adding at 
42 USC 401. 
the end thereof the following new paragraph: 
"(4) The Board of Trustees shall prescribe before January 1, 1981, 
the method of determining the costs which should be borne by the gen-
eral fund in the Treasury of carrying out the functions of the Depart-
ment of Health, Education, and Welfare, specified in section 232, Ante, p. 1137. 
which relate to the administration of provisions of the Internal 
Revenue Code of 1954 (other than those referred to in clause (i) of 
the first sentence of paragraph (1)(A)). If at any time or times 
thereafter the Boards of Trustees of such Trust Funds deem such 
action advisable they may modify the method so determined.''. 
(e) Any persons the Board of Trustees finds necessary to employ to 42 USC 401 note. 
assist it in performing its functions under section 201(g) (4) of the Supra. 
Social Security Act may be appointed without regard to the civil 
service or classification laws, shall be compensated, while so employed 
at rates fixed by the Board of Trustees, but not exceeding $100 per day, 
and, while away from their homes or regular places of business, they 
may be allowed traveling expenses, including per diem in lieu of sub-
sistence, as authorized by law for persons in the Grovernment service 
employed intermittently. 
(f) The Secretary shall not make any estimates pursuant to section 42 USC401 note. 
201(g)(1) (A) (ii) of the Social Security Act before the Board of 
Trustees prescribes the method of determining costs as provided in 
section 201(g) (4) of such Act. The determinations pursuant to section 
201(g) (1) (B) of the Social Security Act with respect to the carrying 
out of the functions of the Department of Health, Education, and Wel-
fare specified in section 232 of such Act, which relate to the administra-
tion of provisions of the Internal Revenue Code of 1954 (other than 
those referred to in clause (i) of the first sentence of section 201 (g) (1) 
(A) of the Social Security Act), during fiscal years ending before the 
Board of Trustees prescribes the method of making such determina-
tions, shall be made after the Board of Trustees has prescribed such 
method. The Secretary of Health, Education, and Welfare shall certify 
to the Managing Trustee the amounts that should be transferred from 
the general fund in the Treasury to the Trust Funds (as referred to 
in section 201(g) (1) (A) of the Social Security Act) to insure that the 
general fund in the Treasury bears its proper share of the costs of 
carrying out such functions in such fiscal years. The Managing Trustee 
is authorized and directed to transfer any such amounts in accordance 
with any certification so made. 
(g) Section 6103 of the Internal Revenue Code of 1954 is amended 26 USC 6103. 
by adding at the end thereof the following new subsection: 
" (g) DISCLOSURE OF INFORMATION TO SECRETARY or HEALTH, EDUCA-
TION, A
N
D WELFARE.—The Secretary or his delegate is authorized to 
make available to the Secretary of Health, Education, and Welfare 
information returns filed pursuant to part I I I of subchapter A of 
chapter 61 of subtitle F for the purpose of carrying out, in accordance 26 USC 6031. 
with an agreement entered into pursuant to section 232 of the Social 
Security Act, an effective information return processing program.". 
(h) (1) Section 230(b) (2) of the Social Security Act is amended to 42 U
S
C 430. 
read as follows: 
"(2) the ratio of (A) the average of the wages of all employees 
as reported to the Secretary of the Treasury for the calendar 
year preceding the calendar year in which the determination 
under subsection (a) with respect to such particular calendar 
89 STAT. 1140 
PUBLIC LAW 94-202—JAN. 2, 1976 
year was made to (B) the average of the wages of all employees 
as reported to the Secretary of the Treasury for the calendar year 
1973 or, if later, the calendar year preceding the most recent calen-
dar year in which an increase in the contribution and benefit base 
was enacted or a determination resulting in such an increase was 
made under subsection (a),". 
42 use 430. 
(2) Section 230(b) of such Act is further amended by adding at 
the end thereof the following new sentence: "For purposes of this 
subsection, the average of the wages for the calendar year 1978 (or 
any prior calendar year) shall, in the case of determmations made 
under subsection (a) prior to December 31, 1979, be deemed to be an 
amount equal to 400 per centum of the amount of the average of the 
taxable wages of all employees as reported to the Secretary for the 
first calendar quarter of such calendar year." 
42 use 403. 
(i)(l) Section 203(f) (8) (B) (ii) of the Social Security Act as 
amended— 
(A) in clause (I) thereof, by striking out "taxable wages of all 
employees as reported to the Secretary for the first calendar quar-
ter of the calendar year", and inserting in lieu thereof "wages of 
all employees as reported to the Secretary of the Treasury for 
the calendar year preceding the calendar year", and 
(B) in clause (II) thereof, by striking out "taxable wages of 
all employees as reported to the Secretary for the first calendar 
quarter of 1973, or, if later, the first calendar quarter of the most 
recent calendar year", and inserting in lieu thereof "wages of all 
employees as reported to the Secretary of the Treasury for the 
calendar year 1973, or, if later, the calendar year preceding the 
most recent calendar year". 
(2) Section 203(f) (8) (B) (ii) of such Act is further amended by 
adding at the end thereof the following new sentence: "For purposes 
of this clause (ii), the average of the wages for the calendar year 1978 
(or any prior calendar year) shall, in the case of determinations made 
under sulbparagraph (A) prior to December 31, 1979, be deemed to be 
an amount equal to 400 per centum of the amount of the average of the 
taxable wages of all employees as reported to the Secretary for the 
first calendar quarter of such calendar year.". 
42 use 424a. 
(j) Section 224(f) (2) of the Social Security Act is amended, in the 
first sentence thereof, by— 
(1) inserting "before the calendar year" immediately after 
"calendar year", and 
(2) inserting "before the calendar year" immediately after 
"taxable year". 
42 use418 note. 
(k) Notwithstanding the provisions of section 218(i) of the Social 
42 use 418. 
Security Act, nothing contained in the amendments made by the pre-
ceding provisions of this section shall be construed to authorize or 
require the Secretary, in promulgating regulations or amendments 
thereto under such section 218(i), substantially to modify the pro-
cedures, as in effect on December 1,1975, for the reporting by States to 
the Secretary of the wages of individuals covered by social security 
pursuant to Federal-State agreements entered into pursuant to sec-
tion 218 of the Social Security Act. 
42 use 1382a. 
SEC. 9. Section 1612(b) (2) of the Social Security Act (as enacted by 
section 301 of the Social Security Amendments of 1972) is amended 
(1) by inserting (A) immediately after (2), and (2) by adding at the 
end thereof the following new subparagraph: 
PUBLIC LAW 94-202—JAN. 2, 1976 
89 STAT. 1141 
"(B) Monthly (or other periodic) payments received by any indi-
vidual, under'a program established prior to July 1,1973, if such pay-
ments are made by the State of '^hich the individual receiving such 
payments is a resident, and if eligibility of any individual for such 
payments is not based on need and is based solely on attainment of age 
65 and duration of residence in such State by such individual.". 
SEC. 10. (a) Section 7652(b) (3) of the Internal Kevenue Code of 
1954 is amended— 
(1) by striking out the first sentence and inserting in lieu 
thereof the following: "Beginning with the calendar quarter end-
ing September 30,1975, and quarterly thereafter, the Secretary or 
his delegate shall determine the amount of all taxes imposed by, 
and collected during the quarter under, the internal revenue laws 
of the United States on articles produced in the Virgin Islands and 
transported to the United States."; 
(2) by amending the first sentence of subparagraph (A) to read 
as follows: "There shall be transferred and paid over, as soon as 
practicable after the close of the quarter, to the Government of the 
Virgin Islands from the amounts so determined a sum equal to the 
tot^ amount of the revenue collected by the Government of the 
Virgin Islands during the quarter, as certified by the Government 
Comptroller of the Virgin Islands."; and 
(3) by amending the sentence immediately following subpara-
graph (C) by striking out "at the beginning" and inserting in lieu 
thereof the following: "with respect to the four calendar quarters 
immediately preceding the beginning". 
(b) The amendments made by paragraphs (1) and (2) of subsection 
(a) shall apply with respect to all taxes imposed by, and collected after 
June 30,1975, under, the internal revenue laws of the United States on 
articles produced in the Virgin Islands and transported to the United 
States. 
Approved January 2, 1976. 
Virgin Islands, 
shipments to the 
U.S. 
26 u s e 7652. 
Effective date. 
26 u s e 7652 
note. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 94-679 (eomm. on Ways and Means). 
SENATE REPORT No. 94-550 (eomm. on Finance). 
CONGRESSIONAL RECORD, Vol. 121 (1975): 
Dec. 1, considered and passed House. 
Dec. 17, considered and passed Senate, amended. 
Dec. 19, House concurred in Senate amendments with amendments; Senate 
receded and concurred in House amendments.