Social Security Independence and Program Improvements Act of 1994
PL 103-296 (H.R.4277), enacted 08/15/1994

108 STAT. 1464 
PUBLIC LAW 103-296—AUG. 15, 1994 
Public Law 103-296 
103d Congress 
An Act 
Aug. 15, 1994 
[H.R. 4277] 
Social Security 
Independence 
and Program 
Improvements 
Act of 1994. 
42 u s e 1305 
note. 
To establish the Social Security Administration as an independent agency and 
to make other improvements in the old-age, survivors, and disability insurance 
program. 
Be it enacted by the Senate and House of Representatives of 
the United States of 
America in Congress assembled, 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—^This Act may be cited as the "Social Security 
Independence and Program Improvements Act of 1994". 
(b) TABLE OF CONTENTS.—The table of contents of this Act 
is as follows: 
Sec. 1. Short title and table of contents. 
T I T L E I — E S T A B L I S H M E N T O F T H E S O C I A L S E C U R I T Y ADMINISTRATION 
AS AN INDEPENDENT AGENCY 
Sec. 101. Establishment of Social Security Administration as an independent 
agency. 
Sec. 102. Commissioner and Deputy Commissioner; other officers. 
Sec. 103. Social Seciuity Advisory Board. 
Sec. 104. Personnel; budgetary matters; seal of office. 
Sec. 105. Transfers to the new Social Security Administration. 
Sec. 106. Transition rules. 
Sec. 107. Conforming amendments to titles II and XVI of the Social Security Act. 
Sec. 108. Additional conforming amendments. 
Sec. 109. Rules of construction. 
Sec. 110. Effective dates. 
TITLE II—PROGRAM IMPROVEMENTS RELATING TO OASDI AND SSI 
Sec. 201. Restrictions on payment of benefits based on disability to substance abus-
ers. 
Sec. 202. Commission on childhood disability. 
Sec. 203. Regulations regarding completion of plans for achieving self-support. 
Sec. 204. SSI eligibility for students temporarily abroad. 
Sec. 205. Disregard o
f
*
^ cost-of-living increases for continued eligibility for work in-
centives. 
Sec. 206. Expansion of the authority of the Social Security Administration to pre-
vent, detect, and terminate fraudulent claims for OASDI and SSI bene-
fits. 
Sec. 207. Disability review required for SSI recipients who are 18 years of age. 
Sec. 208. Continuing disabiUty reviews. 
Sec. 209. Exemption from adjustment in pass-along requirements. 
TITLE III—MISCELLANEOUS PROGRAM IMPROVEMENTS 
Sec. 301. Issuance of physical documents in the form of bonds, notes, or certificates 
to the social security trust funds. 
Sec. 302. GAO study regarding telephone access to local offices of the Social Secu-
rity Administration. 
Sec. 303. Expansion of State option to exclude service of election officials or election 
workers from coverage. 
Sec. 304. Use of social security numbers by States and local governments and Fed-
eral district courts for jury selection purposes. 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1465 
Sec. 305. Authorization for all States to extend coverage to State and local police 
officers and firefighters under existing coverage agreements. 
Sec. 306. Limited exemption for Canadian ministers from certain self-emplojrment 
tax liability. 
Sec. 307. Exclusion of totalization benefits from the application of the windfall 
eUmination provision. 
Sec. 308. Exclusion of military reservists from application of the government pen-
sion offset and windfall elimination provisions. 
Sec. 309. Repeal of the facility-of-payment provision. 
Sec. 310. Maximum family benefits in guarantee cases. 
Sec. 311. Authorization for disclosure of social security information for purposes of 
public or private epidemiological and similar research. 
Sec. 312. Misuse of symbols, emblems, or names in reference to Social Security Ad-
ministration, Depiirtment of Health and Human Services, or Depart-
ment of the Treasiu7. 
Sec. 313. Increased penalties for unauthorized disclosure of social security informa-
tion. 
Sec. 314. Increase in authorized period for extension of time to file annual earnings 
report. 
Sec. 315. Extension of disability insurance program demonstration project author-
ity. 
Sec. 316. Cross-matching of social security account number information and em-
ployer identification number information maintained by the Department 
of Agriculture. 
Sec. 317. Certain transfers to railroad retirement account made permanent. 
Sec. 318. Authorization for use of social security account numbers by Department 
of Labor in administration of Federal workers' compensation laws. 
Sec. 319. Coverage under FICA of Federal employees transferred temporarily to 
international organizations. 
Sec. 320. Extension of the FICA tax exemption and certain tax rules to individuals 
who enter the Uirited States under a visa issued under section 101 of 
the Immigration and Nationality Act. 
Sec. 321. Technical and clerical amendments. 
TITLE I—ESTABLISHMENT OF THE SO-
CIAL SECURITY ADMINISTRATION AS 
AN INDEPENDENT AGENCY 
SEC. 101. ESTABLISHMENT OF SOCIAL SECURITY ADMINISTRATION AS 
AN INDEPENDENT AGENCY. 
Section 701 of the Social Security Act (42 U.S.C. 901) is 
amended to read as follows: 
"SOCIAL SECURITY ADMINISTRATION 
"SEC 701. (a) There is hereby established, as an independent 
agency in the executive branch of the Government, a Social Security 
Administration (in this title referred to as the 'Administration'). 
"(b) It shall be the duty of the Administration to administer 
the old-age, survivors, and disability insurance program under title 
II and the supplemental security income program under title XVI. 
SEC. 102. COMMISSIONER AND DEPUTY COMMISSIONER; OTHER OFFI-
CERS. 
Section 702 of the Social Security Act (42 U.S.C. 902) is 
amended to read as follows: 
"COMMISSIONER; DEPUTY COMMISSIONER; OTHER OFFICERS 
"Commissioner of Social Security 
"SEC 702. (a)(1) There shall be in the Administration a 
Commissioner of Social Security (in this title referred to as the 
108 STAT. 1466 
PUBLIC LAW 103-296—AUG. 15, 1994 
'Commissioner') who shall be appointed by the President, by and 
with the advice and consent of the Senate. 
"(2) The Commissioner shall be compensated at the rate pro-
vided for level I of the Executive Schedule. 
"(3) The Commissioner shall be appointed for a term of 6 
years, except that the initial term of office for Commissioner shall 
terminate January 19, 2001. In any case in which a successor 
does not take office at the end of a Commissioner's term of office, 
such Commissioner may continue in office until the entry upon 
office of such a successor. A Commissioner appointed to a term 
of office after the commencement of such term may serve under 
such appointment only for the remainder of such term. An individ-
ual serving in the office of Commissioner may be removed from 
office only pursuant to a finding by the President of neglect of 
duty or malfeasance in office. 
"(4) The Commissioner shall be responsible for the exercise 
of all powers and the discharge of all duties of the Administration, 
and shall have authority and control over all personnel and activi-
ties thereof. 
"(5) The Commissioner may prescribe such rules and regula-
tions as the Commissioner determines necessary or appropriate 
to carry out the functions of the Administration. The regulations 
prescribed by the Commissioner shall be subject to the rulemaking 
procedures established under section 553 of title 5, United States 
Code. 
"(6) The Commissioner may establish, alter, consolidate, or 
discontinue such organizational units or components within the 
Administration as the Commissioner considers necessary or appro-
priate, except that this paragraph shall not apply with respect 
to any unit, component, or provision provided for by this Act. 
"(7) The Commissioner may assign duties, and delegate, or 
authorize successive redelegations of, authority to act and to render 
decisions, to such officers and employees of the Administration 
as the Commissioner may find necessary. Within the limitations 
of such delegations, redelegations, or assignments, all official acts 
and decisions of such officers and employees shall have the same 
force and effect as though performed or rendered by the Commis-
sioner. 
"(8) The Commissioner and the Secretary of Health and Human 
Services (in this title referred to as the 'Secretary') shall consult, 
on an ongoing basis, to ensure— 
"(A) the coordination of the programs administered by the 
Commissioner, as described in section 701, with the programs 
administered by the Secretary under titles XVIII and XIX of 
this Act; and 
"(B) that adequate information concerning benefits under 
such titles XVIII and XIX is available to the public. 
"Deputy Commissioner of Social Security 
President. 
"(b)(1) There shall be in the Administration a Deputy Commis-
sioner of Social Security (in this title referred to as the 'Deputy 
Commissioner') who shall be appointed by the President, by and 
with the advice and consent of the Senate. 
"(2) The Deputy Commissioner shall be appointed for a term 
of 6 years, except that the initial term of office for the Deputy 
Commissioner shall terminate January 19, 2001. In any case in 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1467 
which a successor does not take office at the end of a Deputy 
Commissioner's term of office, such Deputy Commissioner may con-
tinue in office until the entry upon office of such a successor. 
A Deputy Commissioner appointed to a term of office after the 
commencement of such term may serve under such appointment 
only for the remainder of such term. 
"(3) The Deputy Commissioner shall be compensated at the 
rate provided for level II of the Executive Schedule. 
"(4) The Deputy Commissioner shall perform such duties and 
exercise such powers as the Commissioner shall from time to time 
assign or delegate. The Deputy Commissioner shall be Acting 
Commissioner of the Administration during the absence or disability 
of the Commissioner and, unless the President designates another 
officer of the Government as Acting Commissioner, in the event 
of a vacancy in the office of the Commissioner. 
"Chief Financial Officer 
"(c) There shall be in the Administration a Chief Financial 
Officer appointed by the Commissioner in accordance with section 
901(a)(2) of title 31, United States Code. 
"Inspector General 
"(d) There shall be in the Administration an Inspector General 
President. 
appointed by the President, by and with the advice and consent 
of the Senate, in accordance with section 3(a) of the Inspector 
General Act of 1978.". 
SEC. 103. SOCIAL SECURITY ADVISORY BOARD. 
Section 703 of the Social Security Act (42 U.S.C. 903) is 
amended to read as follows: 
"SOCIAL SECURITY ADVISORY BOARD 
"Establishment of Board 
"SEC 703. (a) There shall be established a Social Security 
Advisory Board (in this section referred to as the 'Board'). 
"Functions of the Board 
"(b) On and after the date the Commissioner takes office, the 
Board shall advise the Commissioner on policies related to the 
old-age, survivors, and disability insurance program under title 
II and the supplemental security income program under title XVI. 
Specific functions of the Board shall include— 
"(1) analyzing the Nation's retirement and disability sys-
tems and making recommendations with respect to how the 
'old-age, survivors, and disability insurance program and the 
supplemental security income program, supported by other pub-
lic and private systems, can most effectively assure economic 
security; 
"(2) studying and making recommendations relating to the 
coordination of programs that provide health security with pro-
grams described in paragraph (1); 
"(3) making recommendations to the President and to the 
Congress with respect to policies that will ensure the solvency 
108 STAT. 1468 
PUBLIC LAW 103-296—AUG. 15, 1994 
of the old-age, survivors, and disability insurance program, 
both in the short-term and the long-term; 
"(4) making recommendations with respect to the quality 
of service that the Administration provides to the public; 
"(5) making recommendations with respect to policies and 
regulations regarding the old-age, survivors, and disability 
insurance program and the supplemental security income pro-
gram; 
"(6) increasing public understanding of the social security 
system; 
"(7) making recommendations with respect to a long-range 
research and program evaluation plan for the Administration; 
"(8) reviewing and assessing any major studies of social 
security as may come to the attention of the Board; and 
"(9) making recommendations with respect to such other 
matters as the Board determines to be appropriate. 
"Structure and Membership of the Board 
"(c)(1) The Board shall be composed of 7 members who shall 
be appointed as follows: 
"(A) 3 members shall be appointed by the President, by 
and with the advice and consent of the Senate. Not more 
than 2 of such members shall be from the same political party. 
"(B) 2 members (each member from a different political 
party) shall be appointed by the President pro tempore of 
the Senate with the advice of the Chairman and the Ranking 
Minority Member of the Senate Committee on Finance. 
"(C) 2 members (each member from a different political 
party) shall be appointed by the Speaker of the House of Rep-
resentatives, with the advice of the Chairman and the Ranking 
Minority Member of the House Committee on Ways and Means. 
"(2) The members shall be chosen on the basis of their integrity, 
impartiality, and good judgment, and shall be individuals who 
are, by reason of their education, experience, and attainments, 
exceptionally qualified to perform the duties of members of the 
Board. 
"Terms of Appointment 
"(d) Each member of the Board shall serve for a term of 6 
years, except that— 
"(1) a member appointed to a term of office after the 
commencement of such term may serve under such appointment 
only for the remainder of such term; and 
"(2) the terms of service of the members initially appointed 
under this section shall begin on October 1, 1994, and expire 
as follows: 
"(A) The terms of service of the members initially 
appointed by the President shall expire as designated by 
the President at the time of nomination, 1 each at the 
end of— 
"(i) 2 years; 
"(ii) 4 years; and 
"(iii) 6 years. 
"(B) The terms of service of members 
initially 
appointed by the President pro tempore of the Senate shall 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1469 
expire as designated by the President pro tempore of the 
Senate at the time of nomination, 1 each at the end of— 
"(i) 3 years; and 
"(ii) 6 years. 
"(C) The terms of service of members 
initially 
appointed by the Speaker of the House of Representatives 
shall expire as designated by the Speaker of the House 
of Representatives at the time of nomination, 1 each at 
the end of— 
"(i) 4 years; and 
"(ii) 5 years. 
"Chairman 
"(e) A member of the Board shall be designated by the President 
to serve as Chairman for a term of 4 years, coincident with the 
term of the President, or until the designation of a successor. 
"Expenses and Per Diem 
"(f) Members of the Board shall serve without compensation, 
except that, while serving on business of the Board away from 
their homes or regular places of business, members may be allowed 
travel expenses, including per diem in lieu of subsistence, as author-
ized by section 5703 of title 5, United States Code, for persons 
in the Government employed intermittently. 
"Meetings 
"(g)(1) The Board shall meet at the call of the Chairman (in 
consultation with the other members of the Board) not less than 
4 times each year to consider a specific agenda of issues, as deter-
mined by the Chairman in consultation with the other members 
of the Board. 
"(2) Four members of the Board (not more than 3 of whom 
may be of the same political party) shall constitute a quorum 
for purposes of conducting business. 
"Federal Advisory Committee Act 
"(h) The Board shall be exempt from the provisions of the 
Federal Advisory Committee Act (5 U.S.C. App.). 
"Personnel 
"(i) The Board shall, without regard to the provisions of title 
5, United States Code, relating to the competitive service, appoint 
a Staff Director who shall be paid at a rate equivalent to a rate 
established for the Senior Executive Service under section 5382 
of title 5, United States Code. The Board shall appoint such addi-
tional personnel as the Board determines to be necessary to provide 
adequate clerical support for the Board, and may compensate such 
additional personnel without regard to the provisions of title 5, 
United States Code, relating to the competitive service. 
"Authorization of Appropriations 
"(j) There are authorized to be appropriated, out of the Federal 
Disability Insurance Trust Fund, the Federal Old-Age and Survivors 
108 STAT. 1470 
PUBLIC LAW 103-296—AUG. 15, 1994 
Insurance Trust Fund, and the general fund of the Treasury, such 
sums as are necessary to carry out the purposes of this section.". 
SEC. 104. PERSONNEL; BUDGETARY MATTERS; SEAL OF OFFICE. 
(a) IN GENERAL.—Section 704 of the Social Security Act (42 
U.S.C. 904) is amended to read as follows: 
"ADMINISTRATIVE DUTIES OF THE COMMISSIONER 
"Personnel 
"SEC. 704. (a)(1) The Commissioner shall appoint such addi-
tional officers and employees as the Commissioner considers nec-
essary to carry out the functions of the Administration under this 
Act, and attorneys and experts may be appointed without regard 
to the civil service laws. Except as otherwise provided in the preced-
ing sentence or in any other provision of law, such officers and 
employees shall be appointed, and their compensation shall be 
fixed, in accordance with title 5, United States Code. 
"(2) The Commissioner may procure the services of experts 
and consultants in accordance with the provisions of section 3109 
of title 5, United States Code. 
"(3) Notwithstanding any requirements of section 3133 of title 
5, United States Code, the Director of the Office of Personnel 
Management shall authorize for the Administration a total number 
of Senior Executive Service positions which is substantially greater 
than the number of such positions authorized in the Social Security 
Administration in the Department of Health and Human Services 
as of immediately before the date of the enactment of the Social 
Security Independence and Program Improvements Act of 1994 
to the extent that the greater number of such authorized positions 
is specified in the comprehensive work force plan as established 
and revised by the Commissioner under subsection (b)(2). The total 
number of such positions authorized for the Administration shall 
not at any time be less than the number of such authorized positions 
as of immediately before such date. 
"Budgetary Matters 
"(b)(1) The Commissioner shall prepare an annual budget for 
the Administration, which shall be submitted by the President 
to the Congress without revision, together with the President's 
annual budget for the Administration. 
"(2)(A) Appropriations requests for staffing and personnel of 
the Administration shall be based upon a comprehensive work 
force plan, which shall be established and revised from time to 
time by the Commissioner. 
"(B) Appropriations for administrative expenses of the Adminis-
tration are authorized to be provided on a biennial basis. 
"Employment Restriction 
"(c) The total number of positions in the Administration (other 
than positions established under section 702) which— 
"(1) are held by noncareer appointees (within the meaning 
of section 3132(a)(7) of title 5, United States Code) in the 
Senior Executive Service, or 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1471 
"(2) have been determined by the President or the Office 
of Personnel Management to be of a confidential, policy-deter-
mining, policy-making, or policy-advocating character and have 
been excepted from the competitive service thereby, 
may not exceed at any time the equivalent of 20 full-time positions. 
"Seal of Office 
"(d) The Commissioner shall cause a seal of office to be made 
for the Administration of such design as the Commissioner shall 
approve. Judicial notice shall be taken of such seal. 
"Data Exchanges 
"(e)(1) Notwithstanding any other provision of law (including 
subsections (b), (o), (p), (q), (r), and (u) of section 552a of title 
5, United States Code)— 
"(A) the Secretary shall disclose to the Commissioner any 
record or information requested in writing by the Commissioner 
for the purpose of administering any program administered 
by the Commissioner, if records or information of such type 
were disclosed to the Commissioner of Social Security in the 
Department of Health and Human Services under applicable 
rules, regulations, and procedures in effect before the date 
of the enactment of the Social Security Independence and Pro-
gram Improvements Act of 1994; and 
"(B) the Commissioner shall disclose to the Secretary or 
to any State any record or information requested in writing 
by the Secretary to be so disclosed for the purpose of administer-
ing any program administered by the Secretary, if records 
or information of such type were so disclosed under applicable 
rules, regulations, and procedures in effect before the date 
of the enactment of the Social Security Independence and Pro-
gram Improvements Act of 1994. 
"(2) The Commissioner and the Secretary shall enter into an 
Contracts. 
agreement under which the Commissioner provides the Secretary 
data concerning the quality of the services and information provided 
to beneficiaries of the programs under titles XVIII and XIX and 
the administrative services provided by the Social Security Adminis-
tration in support of such programs. Such agreement shall stipulate 
the type of data to be provided and the terms and conditions 
under which the data are to be provided. 
"(3) The Commissioner and the Secretary shall periodically 
review the need for exchanges of information not referred to in 
paragraph (1) or (2) and shall enter into such agreements as may 
be necessary and appropriate to provide information to each other 
or to States in order to meet the programmatic needs of the request-
ing agencies. 
"(4)(A) Any disclosure from a system of records (as defined 
in section 552a(a)(5) of title 5, United States Code) pursuant to 
this subsection shall be made as a routine use under subsection 
(b)(3) of section 552a of such title (unless otherwise authorized 
under such section 552a). 
"(B) Any computerized comparison of records, including match-
ing programs, between the Commissioner and the Secretary shall 
be conducted in accordance with subsections (o), (p), (q), (r), and 
(u) of section 552a of title 5, United States Code. 
note. 
108 STAT. 1472 
PUBLIC LAW 103-296—AUG. 15, 1994 
"(5) The Commissioner and the Secretary shall each ensure 
that timely action is taken to establish any necessary routine uses 
for disclosures required under paragraph (1) or agreed to pursuant 
to paragraph (3).". 
42 use 904 
(b) REPORT ON S E S POSITIONS UNDER COMPREHENSIVE WORK 
FORCE PLAN.—^Within 60 days after the establishment by the 
Commissioner of Social Security of the comprehensive work force 
plan required under section 704(b)(2) of the Social Security Act 
(as amended by this Act), the Director of the Office of Personnel 
Management shall transmit to the Committee on Ways and Means 
of the House of Representatives and the Committee on Finance 
of the Senate a report specifying the total number of Senior Execu-
tive Services positions authorized for the Social Security Adminis-
tration in connection with such work force plan. 
42 use 904 
(c) EFFECTIVE DATE AND TRANSITION RULE FOR CERTAIN DATA 
"°*®- 
EXCHANGE PROVISIONS.— 
(1) EFFECTIVE DATE.—Section 704(e)(4) of the Social Secu-
rity Act (as amended by subsection (a)) shall take effect March 
31, 1996. 
(2) TRANSITION RULE.—^Notwithstanding any other provi-
sion of law (including subsections (b), (o), (p), (q), (r), and 
(u) of section 552a of title 5, United States Code), arrangements 
for disclosure of records or other information, and arrangements 
for computer matching of records, which were in effect imme-
diately before the date of the enactment of this Act between 
the Social Security Administration in the Department of Health 
and Human Services and other components of such Department 
may continue between the Social Security Administration estab-
lished under section 701 of the Social Security Act (as amended 
by this Act) and such Department during the period beginning 
on the date of the enactment of this Act and ending March 
31,1996. 
42 use 901 
SEC. 105. TRANSFERS TO THE NEW SOCIAL SECURITY ADMINISTRA-
note. 
TION. 
(a) FUNCTIONS.— 
(1) IN GENERAL.—^There are transferred to the Social Secu-
rity Administration all functions of the Secretary of Health 
and Human Services with respect to or in support of the pro-
grams and activities the administration of which is vested 
in the Social Security Administration by reason of this title 
and the amendments made thereby. The Commissioner of Social 
Security shall allocate such functions in accordance with sec-
tions 701, 702, 703, and 704 of the Social Security Act (as 
amended by this title). 
(2) FUNCTIONS OF OTHER AGENCIES.— 
(A) IN GENERAL.—Subject to subparagraph (B), the 
Social Security Administration shall also perform— 
(i) the functions of the Department of Health and 
Human Services, including functions relating to titles 
XVIII and XK of the Social Security Act (including 
adjudications, subject to final decisions by the Sec-
retary of Health and Human Services), that the Social 
Security Administration in such Department performed 
as of immediately before the date of the enactment 
of this Act, and 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1473 
(ii) the functions of any other agency for which 
administrative responsibility was vested in the Social 
Security Administration in the Department of Health 
and Human Services as of immediately before the date 
of the enactmient of this Act. 
(B) RULES GOVERNING CONTINUATION OF FUNCTIONS 
IN THE ADMINISTRATION.—^The Social Security Administra-
tion shall perform, on behalf of the Secretary of Health 
and Human Services (or the head of any other agency, 
as applicable), the functions described in subparagraph 
(A) in accordance with the same financial and other terms 
in effect on the day before the date of the enactment 
of this Act, except to the extent that the Commissioner 
and the Secretary (or other agency head, as applicable) 
agree to alter such terms pertaining to any such function 
or to terminate the performance by the Social Security 
Administration of any such function, 
(b) PERSONNEL, ASSETS, ETC.— 
(1) IN GENERAL.—^There are transferred from the Depart-
ment of Hegdth and Human Services to the Social Security 
Administration, for appropriate allocation by the Commissioner 
of Social Security in the Social Security Administration— 
(A) the personnel employed in connection with the 
functions transferred by this title and the amendments 
made thereby; and 
(B) the assets, liabilities, contracts, property, records, 
and unexpended balance of appropriations, authorizations, 
allocations, and other funds employed, held, or used in 
connection with such functions, arising from such functions, 
or available, or to be made available, in connection with 
such functions. 
(2) UNEXPENDED FUNDS.—^Unexpended funds transferred 
pursuant to this subsection shall be used only for the purposes 
for which the funds were originally appropriated. 
(3) EMPLOYMENT PROTECTIONS.— 
(A) IN GENERAL.—During the 1-year period beginning 
March 31,1995— 
(i) the trsmsfer pursuant to this section of any 
full-time personnel (except special Grovemment employ-
ees) and part-time personnel holding permanent posi-
tions shall not cause any such personnel to be 
separated or reduced in grade or compensation solely 
as a result of such transfer, and 
(ii) except as provided in subparagraph (B), any 
such personnel who were not employed in the Social 
Security Administration in the Department of Health 
and Human Services immediately before the date of 
the enactment of this Act shall not be subject to 
directed reassignment to a duty station outside their 
commuting area. 
(B) SPECIAL RULES.— 
(i) In the case of personnel whose duty station 
is in the Washington, District of Columbia, commuting 
area immediately before March 31, 1995, subparagraph 
(A)(ii) shall not apply with respect to directed reassign-
ment to a duty station in the Baltimore, Maryland, 
commuting area after September 30, 1995. 
108 STAT. 1474 
PUBLIC LAW 103-296—AUG. 15, 1994 
(ii) In the case of personnel whose duty station 
is in the Baltimore, Maryland, commuting area imme-
diately before March 31, 1995, subparagraph (A)(ii) 
shall not apply with respect to directed reassignment 
to a duty station in the Washington, District of Colum-
bia, commuting area gifter September 30, 1995. 
(4) OFFICE SPACE.—Notwithstanding section 7 of the Public 
Buildings Act of 1959 (40 U.S.C. 606), and subject to available 
appropriations, the Administrator of General Services may, 
after consultation with the Commissioner of Social Security 
, 
and under such terms and conditions as the Administrator 
finds to be in the interests of the United States— 
(A) acquire occupiable space in the metropolitan area 
of Washington, District of Columbia, for housing the Social 
Security Administration, and 
(B) renovate such space as necessary. 
(c) INTER-AGENCY TRANSFER ARRANGEMENT.—The Secretary of 
Health and Human Services and the Commissioner of Social Secu-
rity shall enter into a written inter-agency transfer arrangement 
(in this subsection referred to as the "arrangement"), which shall 
be effective March 31, 1995. Transfers made pursuant to this section 
shall be in accordance with the arrangement, which shall specify 
the personnel and resources to be transferred as provided under 
this section. The terms of such arrangement shall be transmitted 
not later than January 1, 1995, to the Committee on Ways and 
Means of the House of Representatives, to the Committee on 
Finance of the Senate, and to the Comptroller General of the 
Reports. 
United States. Not later than February 15, 1995, the Comptroller 
General shall submit a report to each such Committee setting 
forth an evaluation of such arrangement. 
42 use 901 
SEC. 106. TRANSITION RULES. 
(a) TRANSITION RULES RELATING TO OFFICERS OF THE SOCIAL 
SECURITY ADMINISTRATION.— 
(1) APPOINTMENT OF INITIAL COMMISSIONER OF SOCIAL SECU-
RITY.—^The President shall nominate for appointment the initial 
Commissioner of Social Security to serve as head of the Social 
Security Administration established under section 701 of the 
Social Security Act (as amended by this Act) not later than 
60 days after the date of the enactment of this Act. 
(2) 
ASSUMPTION 
OF OFFICE 
OF INITIAL 
COMMISSIONER 
BEFORE EFFECTIVE DATE OF NEW AGENCY.—If the appointment 
of the initial Commissioner of Social Security pursuant to sec-
tion 702 of the Social Security Act (as amended by this Act) 
is confirmed by the Senate pursuant to such section 702 before 
March 31, 1995, the individual shall take office as Commis-
sioner immediately upon confirmation, and, until March 31, 
1995, such Commissioner shall perform the functions of the 
Commissioner of Social Security in the Department of Health 
and Human Services. 
(3) TREATMENT OF INSPECTOR GENERAL AND OTHER APPOINT-
MENTS.—^At any time on or after the date of the enactment 
of this Act, any of the officers provided for in section 702 
of the Social Security Act (as amended by this title) and any 
of the members of the Social Security Advisory Board provided 
for in section 703 of such Act (as so amended) may be nominated 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1475 
and take office, under the terms and conditions set out in 
such sections. 
(4) COMPENSATION FOR INITIAL OFFICERS AND BOARD MEM-
BERS BEFORE EFFECTIVE DATE OF NEW AGENCY.—^Funds avail-
able to any official or component of the Department of Health 
and Human Services, functions of which are transferred to 
the Commissioner of Social Security or the Social Security 
Administration by this title, may, with the approval of the 
Director of the Office of Management and Budget, be used 
to pay the compensation and expenses of any officer or employee 
of the new Social Security Administration and of any member 
or staff of the Social Security Advisory Board who takes office 
pursuEmt to this subsection before March 31, 1995, until such 
time as funds for that purpose are otherwise available. 
(5) INTERIM ROLE OF CURRENT COMMISSIONER AFTER EFFEC-
TIVE DATE OF NEW AGENCY.—In the event that, as of March 
31, 1995, an individual appointed to serve as the initial 
Commissioner of Social Security has not taken office, until 
such initial Commissioner has taken office, the officer serving 
on March 31, 1995, as Commissioner of Social Security (or 
Acting Commissioner of Social Security, if applicable) in the 
Department of Health and Human Services shall, while continu-
ing to serve as such Commissioner of Social Security (or Acting 
Commissioner of Social Security), serve as Commissioner of 
Social Security (or Acting Commissioner of Social Security, 
respectively) in the Social Security Administration established 
under such section 701 and shall assume the powers and duties 
under such Act (as amended by this Act) of the Commissioner 
of Social Security in the Social Security Administration as 
so established under such section 701. In the event that, as 
of March 31, 1995, the President has not nominated an individ-
ual for appointment to the office of Commissioner of Social 
Security in the Social Security Administration established 
under such section 701, then the individual serving as Commis-
sioner of Social Security (or Acting Commissioner of Social 
Security, if applicable) in the Department of Health and Human 
Services shall become the Acting Commissioner of Social Secu-
rity in the Social Security Administration as so established 
under such section 701. 
(6) INTERIM INSPECTOR GENERAL.^The Commissioner of 
Social Security may appoint an individual to assume the powers 
and duties under the Inspector General Act of 1978 of Inspector 
General of the Social Security Administration as established 
under section 701 of the Social Security Act for a period not 
to exceed 60 days. The Inspector General of the Department 
of Health and Human Services may, when so requested by 
the Commissioner, while continuing to serve as Inspector (Jen-
eral in such Department, serve as Inspector Greneral of the 
Social Security Administration established under such section 
701 and shall assume the powers and duties under the Inspec-
tor Greneral Act of 1978 of Inspector General of the Social 
> 
Security Administration as established under such section 701. 
The Social Security Administration shall reimburse the Office 
of Inspector General of the Department of Health and Human 
Services for costs of any functions performed pursuant to this 
subsection, from funds available to the Administration at the 
time the functions are performed. The authority under this 
108 STAT. 1476 
PUBLIC LAW 103-296—AUG. 15, 1994 
paragraph to exercise the powers and duties of the Inspector 
Greneral shall terminate upon the entry upon office of an Inspec-
tor General for the Social Security Administration under the 
Inspector General Act of 1978. 
(7) ABOLISHMENT OF OFFICE OF COMMISSIONER OF SOCIAL 
SECURITY IN THE DEPARTMENT OF HEALTH AND HUMAN SERV-
ICES.—^Effective when the initial Commissioner of Social Secu-
rity of the Social Security Administration established under 
section 701 of the Social Security Act (as amended by this 
title) takes office pursuant to section 702 of such Act (as so 
amended)— 
(A) the position of Commissioner of Social Security 
in the Department of Health and Human Services is abol-
ished; and 
(B) section 5315 of title 5, United States Code, is 
amended by striking the following: 
"Commissioner of Social Security, Department of Health 
and Human Services.", 
(b) CONTINUATION OF ORDERS, DETERMINATIONS, RULES, REGU-
LATIONS, ETC.—^All orders, determinations, rules, regulations, per-
mits, contracts, collective bargaining agreements (and ongoing 
negotiations relating to such collective bargaining agreements), 
recognitions of labor organizations, certificates, licenses, and privi-
leges— 
(1) which have been issued, made, promulgated, granted, 
or allowed to become effective, in the exercise of functions 
(A) which were exercised by the Secretary of Health and Human 
Services (or the Secretary's delegate), and (B) which relate 
to functions which, by reason of this title, the amendments 
made thereby, and regulations prescribed thereunder, are 
vested in the Commissioner of Social Security; and 
(2) which are in effect immediately before March 31, 1995, 
shall (to the extent that they relate to functions described in para-
graph (1)(B)) continue in effect according to their terms until 
modified, terminated, suspended, set aside, or repealed by such 
Commissioner, except that any collective bargaining agreement 
shall remain in effect until the date of termination specified in 
such agreement. 
(c) CONTINUATION OF PROCEEDINGS.—The provisions of this 
title (including the amendments made thereby) shall not affect 
any proceeding pending before the Secretary of Health and Human 
Services immediately before March 31, 1995, with respect to func-
tions vested (by reason of this title, the amendments made thereby, 
and regulations prescribed thereunder) in the Commissioner of 
Social Security, except that such proceedings, to the extent that 
such proceedings relate to such functions, shall continue before 
such Commissioner. Orders shall be issued under any such proceed-
ing, appeals taken therefrom, and payments shall be made pursuant 
to such orders, in like manner as if this title had not been enacted, 
and orders issued in any such proceeding shall continue in effect 
until modified, terminated, superseded, or repealed by such 
Commissioner, by a court of competent jurisdiction, or by operation 
of law. 
(d) CONTINUATION OF SUITS.—Except as provided in this sub-
section— 
(1) the provisions of this title shall not affect suits com-
menced before March 31, 1995; and 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1477 
(2) in all such suits proceedings shall be had, appeals 
taken, and judgments rendered, in the same manner and effect 
as if this title had not been enacted. 
No cause of action, and no suit, action, or other proceeding com-
menced by or against any officer in such officer's official capacity 
as an officer of the Department of Health and Human Services, 
shall abate by reason of the enactment of this title. In any suit, 
action, or other proceeding pending immediately before March 31, 
1995, the court or hearing officer may at any time, on the motion 
of the court or hearing officer or that of a party, enter an order 
which will give effect to the provisions of this subsection (including, 
where appropriate, an order for substitution of parties). 
(e) CONTINUATION OF PENALTIES.—This title shall not have 
the effect of releasing or extinguishing any civil or criminal prosecu-
tion, penalty, forfeiture, or liability incurred as a result of any 
function which (by reason of this title, the amendments made 
thereby, and regulations prescribed thereunder) is vested in the 
Commissioner of Social Security. 
(f) JUDICIAL REVIEW.—Orders and actions of the Commissioner 
of Social Security in the exercise of functions vested in such 
Commissioner under this title and the amendments made thereby 
(other than functions performed pursuant to 105(a)(2)) shall be 
subject to judicial review to the same extent and in the same 
manner as if such orders had been made and such actions had 
been taken by the Secretary of Health and Human Services in 
the exercise of such functions immediately before March 31, 1995. 
Any statutory requirements relating to notice, hearings, action upon 
the record, or administrative review that apply to any function 
so vested in such Commissioner shall continue to apply to the 
exercise of such function by such Commissioner. 
(g) EXERCISE OF FUNCTIONS.—In the exercise of the functions 
vested in the Commissioner of Social Security under this title, 
the amendments made thereby, and regulations prescribed there-
under, such Commissioner shall have the same authority as that 
vested in the Secretary of Health and Human Services with respect 
to the exercise of such functions immediately preceding the vesting 
of such functions in such Commissioner, and actions of such 
Commissioner shall have the same force and effect as when exer-
cised by such Secretary. 
SEC. 107. CONFORMING AMENDMENTS TO TITLES II AND XVI OF THE 
SOCIAL SECURITY ACT. 
(a) IN GENERAL.—Title II of the Social Security Act (42 U.S.C. 
401 et seq.) (other than section 201, section 231(c), section 226, 
and section 226A) and title XVI of such Act (42 U.S.C. 1382 et 
seq.) (other than section 1614(f)(2)(B)) are each amended— 
42 USC 1381 
(1) by striking, wherever it appears, "Secretary of Health 
^t seq. 
and Human Services" and inserting "Commissioner of Social 
Security"; 
(2) by striking, wherever it appears, "Department of Health 
and Human Services" and inserting "Social Security Adminis-
tration"; 
(3) by striking, wherever it appears, "Department" (but 
only if it is not immediately succeeded by the words "of Health 
and Human Services", and only if it is used in reference to 
the Department of Health and Human Services) and inserting 
"Administration"; and 
108 STAT. 1478 
PUBLIC LAW 103-296—AUG. 15, 1994 
(4) by striking, wherever it appears, each of the following 
words (but, in the case of any such word only if such word 
refers to the Secretary of Health and Human Services): "Sec-
retary", "Secretary's", "his", "him", "he", "her", and "she", and 
inserting (in the case of the word "Secretary") "Commissioner 
of Social Security", (in the case of the word "Secretary's") 
"Commissioner's", (in the case of the word "his") "the Commis-
sioner's", (in the case of the word "him") "the Commissioner", 
(in the case of the word "her") "the Commissioner" or "the 
Commissioner's", as mav be appropriate, and (in the case of 
the words "she" or "he") the Commissioner", 
(b) AMENDMENTS TO SECTION 201.— 
(1) Subsections (a)(3), (a)(4), (b)(1), and (b)(2) of section 
201 of such Act (42 U.S.C. 401) are amended by striking "Sec-
retary of Health and Human Services" and inserting "Commis-
sioner of Social Security". 
(2) Subsections (a)(3) and (b)(1) of section 201 of such 
Act (42 U.S.C. 401) are amended by striking "such Secretary" 
and inserting "such Commissioner". 
(3) Section 201(c) of such Act (42 U.S.C. 401(c)) is 
amended— 
(A) in the first sentence, by inserting "the Commis-
sioner of Social Security," before "the Secretary of the 
Treasury"; and 
(B) in the fifth sentence, by striking "Commissioner 
of Social Security" and inserting "Deputy Commissioner 
of Social Security". 
(4) Section 201(g)(1)(A) of such Act (42 U.S.C. 401(g)(1)(A)) 
is amended— 
(A) in clause (i), by striking "by him and the Secretary 
of Health and Human Services" and inserting "by the Man-
aging Trustee, the Commissioner of Social Security, and 
the Secretary of Health and Human Services", and by 
striking "by the Department of Health and Human Services 
and the Treasury Department for the administration of 
titles n, XVI, and XVIII of this Act" and inserting "by 
the Department of Health and Human Services for the 
administration of title XVIII of this Act, and by the Depart-
ment of the Treasury for the administration of titles II 
and XVIII of this Act"; 
(B) in clause (ii), by striking "method prescribed by 
the Board of Trustees under paragraph (4)" and inserting 
"applicable method prescribed under paragraph (4)", by 
striking "the Secretary of Health and Human Services" 
and inserting "the Commissioner of Social Security", and 
by striking "the Department of Health and Human Serv-
ices" and inserting "the Social Security Administration"; 
and 
(C) in the matter following clause (ii), by striking "titles 
II, XVI, and XVIII" in the first sentence and inserting 
"titles II and XVHI", and by striking the last sentence 
and inserting the following: "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 Commissioner of Social Security is responsible, 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1479 
the costs of title XVIII for which the Secretary of Health 
and Human Services is responsible, and the costs of carry-
ing out the functions of the Social Security Administration, 
specified in section 232, which relate to the administration 
of provisions of the Internal Revenue Code of 1986 other 
than those referred to in clause (i) of the first sentence 
of this subparagraph.". 
(4)(A) Section 201(g)(1) of such Act (42 U.S.C. 401(g)(1)) 
is further amended by striking subparagraph (B) and inserting 
the following new subparagraphs: 
"(B) After the close of each fiscal year— 
"(i) the Commissioner of Social Security shall determine— 
"(I) the portion of the costs, incurred during such fiscal 
year, of administration of this title, title XVI, and title 
XVIII for which the Commissioner is responsible and of 
carrying out the functions of the Social Security Adminis-
tration, specified in section 232, which relate to the 
administration of provisions of the Internal Revenue Code 
of 1986 (other than those referred to in clause (i) of the 
first sentence of subparagraph (A)), which should have 
been borne by the general fund of the Treasury, 
"(II) the portion of such costs which should have been 
borne by the Federal Old-Age and Survivors Insurance 
Trust Fund, 
"(III) the portion of such costs which should have been 
borne by the Federal Disability Insurance Trust Fund, 
"(IV) the portion of such costs which should have been 
borne by the Federal Hospital Insurance Trust Fund, and 
"(V) the portion of such costs which should have been 
borne by the Federal Supplementary Medical Insurance 
Trust Fund, and 
"(ii) the Secretary of Health and Human Services shall 
determine— 
"(I) the portion of the costs, incurred during such fiscal 
year, of the administration of title XVIII for which the 
Secretary is responsible, which should have been borne 
by the general fund of the Treasury, 
"(II) the portion of such costs which should have been 
borne by the Federal Hospital Insurance Trust Fund, and 
"(III) the portion of such costs which should have been 
borne by the Federal Supplementary Medical Insurance 
Trust Fund. 
"(C) After the determinations under subparagraph (B) have 
been made for any fiscal year, the Commisioner of Social Security 
and the Secretary shall each certify to the Managing Trustee the 
amounts, if any, which should be transferred from one to any 
of the other 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 of the Treasury, in order to 
ensure that each of the Trust Funds and the general fund of 
the Treasury have borne their proper share of the costs, incurred 
during such fiscal year, for— 
"(i) the parts of the administration of this title, title XVI, 
and title XVIII for which the Commissioner of Social Security 
is responsible, 
"(ii) the parts of the administration of title XVIII for which 
the Secretary is responsible, and 
108 STAT. 1480 
PUBLIC LAW 103-296—AUG. 15, 1994 
"(iii) carrying out the functions of the Social Security 
Administration, specified in section 232, which relate to the 
administration of provisions of the Internal Revenue Code of 
1986 (other than those referred to in clause (i) of the first 
sentence of subparagraph (A)). 
The Managing Trustee shall transfer any such amounts in accord-
ance with any certification so made. 
"(D) The determinations required under subclauses (IV) and 
(V) of subparagraph (B)(i) shall be made in accordance with the 
cost allocation methodology in existence on the date of the enact-
ment of the Social Security Independence and Program Improve-
ments Act of 1994, until such time as the methodology for making 
the determinations required under such subclauses is revised by 
agreement of the Commissioner and the Secretary, except that 
the determination of the amounts to be borne by the general fund 
of the Treasury with respect to expenditures incurred in carrying 
out the functions of the Social Security Administration specified 
in section 232 shall be made pursuant to the applicable method 
prescribed under paragraph (4).". 
(5) Section 201(g)(2) of such Act (42 U.S.C. 401(g)(2)) is 
amended, in the second sentence, by striking "established and 
maintained by the Secretary of Health and Human Services" 
and inserting "maintained by the Commissioner of Social Secu-
rity", and by striking "Secretary shall furnish" and inserting 
"Commissioner of Social Security shall furnish". 
(6) Section 201(g)(4) of such Act (42 U.S.C. 401(g)(4)) is 
amended to read as follows: 
"(4) The Commissioner of Social Security shall utilize the 
method prescribed pursuant to this paragraph, as in effect imme-
diately before the date of the enactment of the Social Security 
Independence and Program Improvements Act of 1994, for determin-
ing the costs which should be borne by the general fund of the 
Treasury of carrying out the functions of the Commissioner, speci-
fied in section 232, which relate to the administration of provisions 
of the Internal Revenue Code of 1986 (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 consider such action advisable, they may modify the method 
of determining such costs.". 
(7) Section 201(i)(l) of such Act (42 U.S.C. 401(i)(l)) is 
amended to read as follows: 
"(i)(l) The Managing Trustee may accept on behalf of the United 
States money giftis and bequests made unconditionally to the Fed-
eral Old-Age and Survivors Insurance Trust Fund, the Federal 
Disability Insurance Trust Fund, the Federal Hospital Insurance 
Trust Fund, or the Federal Supplementary Medical Insurance Trust 
Fund or to the Social Security Administration, the Department 
of Health and Human Services, or any part or officer thereof, 
for the benefit of any of such Funds or any activity financed through 
such Funds.". 
(8) Subsections (j) and (k) of section 201 of such Act (42 
U.S.C. 401) are each amended by striking "Secretary" each 
place it appears and inserting "Commissioner of Social Secu-
rity". 
(9) Section 201(l)(3)(B)(iii)(II) of such Act (42 U.S.C. 
401(l)(3)(B)(iii)(II)) is amended by striking "Secretary" and 
inserting "Commissioner of Social Security". 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1481 
(10) Section 201(m)(3) of such Act (42 U.S.C. 401(m)(3)) 
is amended by striking "Secretary of Health and Human Serv-
ices" and inserting "Commissioner of Social Security". 
(c) AMENDMENT TO SECTION 231.—Section 231(c) of such Act 
(42 U.S.C. 431(c)) is amended by striking "Secretary determines" 
and inserting "Commissioner of Social Security and the Secretary 
jointly determine". 
SEC. 108. ADDITIONAL CONFORMING AMENDMENTS. 
(a) AMENDMENTS TO TITLE VII.— 
(1) Title VII of the Social Security Act (42 U.S.C. 901 
et seq.) is amended by adding at the end the following new 
section: 
"DUTIES AND AUTHORITY OF SECRETARY 
"SEC. 712. The Secretary shall perform the duties imposed 
42 use 913. 
upon the Secretary by this Act. The Secretary is authorized to 
appoint and fix the compensation of such officers and employees, 
and to make such expenditures as may be necessary for carrying 
out the functions of the Secretary under this Act. The Secretary 
may appoint attorneys and experts without regard to the civil 
service laws." 
(2) Section 706 of such Act (42 U.S.C. 907) is repealed. 
This paragraph shall not apply with respect to the Advisory 42 use 907 
Council for Social Security appointed in 1994. 
^°^-
(3) Paragraph (2) of section 709(b) of such Act (42 U.S.C. 
910(b)) is amended by striking "(as estimated by the Secretary)" 
' 
and inserting "(for amounts which will be paid from the Federal 
Old-Age and Survivors Insurance Trust Fund and the Federal 
Disability Insurance Trust Fund, as estimated by the Commis-
sioner, and for amounts which will be paid from the Federal 
Hospital Insurance Trust and the Federal Supplementary Medi-
cal Insurance Trust Fund, as estimated by the Secretary)". 
(b) AMENDMENTS TO TITLE XI.— 
(1) Section 1101(a) of such Act (42 U.S.C. 1301(a)) is 
amended by adding at the end the following new paragraph: 
"(10) The term 'Administration' means the Social Security 
Administration, except where the context requires otherwise.". 
(2) Section 1106(a) of such Act (42 U.S.C. 1306(a)) is 
amended— 
(A) by inserting "(1)" after "(a)"; 
(B) by striking "Department of Health and Human 
Services" each place it appears and inserting "applicable 
agency"; 
(C) by striking "Secretary" each place it appears and 
inserting "head of the applicable agency"; and 
(D) by adding at the end the following new paragraph: 
"(2) For purposes of this subsection and subsection (b), the 
term 'applicable agency' means— 
"(A) the Social Security Administration, with respect to 
matter transmitted to or obtained by such Administration or 
matter disclosed by such Administration, or 
"(B) the Department of Health and Human Services, with 
respect to matter transmitted to or obtained by such Depart-
ment or matter disclosed by such Department.". 
(3) Section 1106(b) of such Act (42 U.S.C. 1306(b)) is 
amended— 
108 STAT. 1482 
PUBLIC LAW 103-296—AUG. 15, 1994 
(A) by striking "Secretary" each place it appears and 
inserting "head of the applicable agency"; and 
(B) by striking "Department of Health and Human 
Services" and inserting "applicable agency". 
(4) Section 1106(c) of such Act (42 U.S.C. 1306(c)) is 
amended— 
(A) by striking "the Secretary" the first place it appears 
and inserting "the Commissioner of Social Security or the 
Secretary"; and 
(B) by striking "the Secretary" each subsequent place 
' 
it appears and inserting "such Commissioner or Secretary". 
(5) Section 1106(d) of such Act (added by section 311 of 
this Act) is amended— 
(A) by striking "Secretary" the first place it appears 
and inserting "Commissioner of Social Security"; 
(B) by striking "Secretary" the second place it appears 
and inserting "Commissioner"; 
. 
(C) by striking "Secretary" the third place it appears 
and inserting "Commissioner in consultation with the Sec-
retary of Health and Human Services"; and 
(D) by striking "Secretary" each subsequent place it 
appears and inserting "Commissioner". 
(6) Section 1107(b) of such Act (42 U.S.C. 1307(b)) is 
/ 
amended by striking "the Secretary of Health and Human 
Services" and inserting "the Commissioner of Social Security 
or the Secretary". 
(7) Section 1110 of such Act (42 U.S.C. 1310) is amended— 
(A) by striking "he", "his", and "him" each place they 
appear (except in subsection (b)(2)(A)) and inserting "the 
Commissioner", "the Commissioner's", and "the Commis-
sioner", respectively; 
(B) in subsection (a)(2), by inserting "(or the Commis-
sioner, with respect to £iny jointly financed cooperative 
agreement or grant concerning titles II or XVI)" after "Sec-
retary"; 
(C) in subsection (b)(1)— 
(i) by striking "Secretary" each place it appears 
in the first two sentences and inserting "Commis-
sioner"; 
(ii) by striking in the third sentence "determined 
by the Secretary, and inserting "determined by the 
Commissioner with respect to the old-age, survivors, 
J 
and disability insurance programs under title II and 
the supplemental security income program under title 
' 
XVI, and by the Secretary with respect to other titles 
of this Act,"; and 
(iii) by striking the fourth sentence and inserting 
the following new sentences: "If, in order to carry out 
a project under this subsection, the Commissioner 
requests a State to make supplementary payments 
(or the Commissioner makes them pursuant to an 
agreement under section 1616) to individuals who are 
not eligible therefor, or in amounts or under cir-
cumstances in which the State does not make such 
gayments, the Commissioner shall reimburse such 
tate for the non-Federal share of such payments from 
amounts appropriated to carry out title XVI. If, in 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1483 
order to cari-y out a project under this subsection, 
the Secretary requests a State to provide medical 
assistance under its plan approved under title XIX 
to individusds who are not eligible therefor, or in 
amounts or under circumstances in which the State 
does not provide such medical assistance, the Secretary 
shall reimburse such State for the non-Federal share 
of such assistance from amounts appropriated to carry 
out title XVI, which shall be provided by the Commis-
sioner to the Secretary for this purpose."; 
(D) in subsection (b)(2), by striking "Secretary" each 
place it appears and inserting "Commissioner"; and 
(E) in subsection (b), by striking paragraph (3). 
(8) Subsections (b) and (c) of section 1127 of such Act 
(42 U.S.C. 1320a-6) are each amended by striking "Secretary" 
£ind inserting "Commissioner of Social Security". 
(9) Section 1128(0 of such Act (42 U.S.C. 1320a-7(f)) is 
amended— 
(A) in paragraph (1), by inserting after "section 205(g)" 
the following: ", except that, in so applying such sections 
and section 205(1), any reference therein to the Commis-
sioner of Social Security or the Social Security Administra-
tion shall be considered a reference to the Secretary or 
the Department of Health and Human Services, respec-
tively", and 
(B) in paragraph (3), by inserting after "title 11" the 
following: ", except that, in so applying such section and 
section 205(1), any reference therein to the Commissioner 
of Social Security shall be considered a reference to the 
Secretary". 
(10)(A) Section 1129 of such Act (added by section 206(b) 
of this Act) is amended— 
(i) by striking "Secretary" each place it appears and 
inserting "Commissioner of Social Security"; 
(ii) in subsection (a)(1)— 
(I) by striking "exclude, as provided in section 
1128," and inserting "recommend that the Secretary 
exclude, as provided in section 1128,"; and 
(II) by striking "and to direct" and all that follows 
through "determines"; 
(iii) in subsection (g)— 
(I) 
by 
striking 
"Secretary's" 
and 
inserting 
"Commissioner's"; and 
(II) by striking "the provisions" and all that follows 
and inserting the following: "the Commissioner shall 
notify the Secretary of the final determination and 
the reasons therefor, and the Secretary shall then 
notify the entities described in section 1128A(h) of 
such final determination."; 
(iv) in subsection (k), by inserting "based on a rec-
ommendation under subsection (a)" after "section 1128"; 
and 
(v) in subsection (1) (added by section 206(e)(1)), by 
striking "Department of Health and Human Services" and 
inserting "Social Security Administration". 
(B) Section 206(g) of this Act is amended— 
42 USC 405 
note. 
108 STAT. 1484 
PUBLIC LAW 103-296—AUG. 15, 1994 
(i) by striking "Secretary of Health and Human Serv-
ices" and inserting "Commissioner of Social Security"; and 
(ii) by striking "Secretary has exercised" and inserting 
"Commissioner has exercised". 
(11) Section 1131 of such Act (42 U.S.C. 1320b-l) is 
amended— 
(A) by striking "Secretary" each place it appears and 
inserting "Commissioner of Social Security"; 
(B) in subsection (a)(1)(A), by adding "or" at the end; 
(C) in subsection (a)(1)(B), by striking "or" at the end; 
(D) by striking subsection (a)(1)(C); 
(E) by redesignating subsection (a)(2) as subsection 
- 
(a)(3); 
(F) by inserting after subsection (a)(1) the following 
new paragraph: 
"(2) the Secretary makes a finding of fact and a decision as 
to the entitlement under section 226 of any individual to hospital 
insurance benefits under part A of title XVIII, or"; and 
(G) in the matter in subsection (a) following paragraph 
(3) (as so redesignated), by striking "he" and inserting 
"the Commissioner of Social Security", by striking "para-
graph (1)" and inserting "paragraph (1) or (2)", by striking 
' [ 
"paragraph (2)" and inserting "paragraph (3)", and by strik-
ing "paragraph (1) or (2)(A)" and inserting "paragraph (1), 
(2),or(3)(A)". 
(12) Section 1140 of such Act (42 U.S.C. 1320b-10) (as 
amended by section 312 of this Act) is amended— 
(A) in subsection (a)(2)— 
(i) by inserting "(A)" after "(2)"; 
(ii) by striking "or of the Department of Health 
and Human Services"; 
(iii) by striking "which the Secretary shall pre-
scribe" and inserting "which the Commissioner of 
Social Security shall prescribe"; and 
(iv) by adding at the end the following new 
subparagraph: 
"(B) No person may, for a fee, reproduce, reprint, or distribute 
any item consisting of a form, application, or other publication 
of the Department of Health and Human Services unless such 
person has obtained specific, written authorization for such activity 
in accordance with regulations which the Secretary shall prescribe."; 
(B) in subsection (b), by striking "the Secretary" and 
inserting 
"the 
Commissioner 
or 
the 
Secretary 
(as 
applicable)"; 
(C) in subsection (c)(2), by striking "the Secretary" 
each place it appears and inserting "the Commissioner 
or the Secretary (as applicable)"; and 
(D) in subsection (d), by striking "the Office of Inspector 
. General of the Department of Health and Human Services" 
and inserting "the Office of the Inspector General of the 
Social Security Administration or the Office of the Inspector 
• General of the Department of Health and Human Services 
(as appropriate)". 
(13) Section 1141 of such Act (42 U.S.C. 1320b-ll) is 
amended— 
(A) by striking "Secretary" each place it appears and 
inserting "Commissioner of Social Security"; 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1485 
(B) by striking "Secretary's" each place it appears and 
inserting "Commissioner's"; 
(C) in the first sentence of subsection (a), by striking 
"under the direction of the Commissioner of Social Secu-
rity,"; and 
(D) in subsection (d)(6), by striking "Department of 
Health Services and inserting "Social Security Administra-
tion". 
(14) Section 1155 of such Act (42 U.S.C. 1320c-4) is 
amended by striking "(to the same extent as is provided in 
section 205(b))" and all that follows and inserting "(to the 
same extent as beneficiaries under title II are entitled to a 
hearing by the Commissioner of Social Security under section 
205(b)). For purposes of the preceding sentence, subsection 
(1) of section 205 shall apply, except that any reference in 
such subsection to the Commissioner of Social Security or the 
Social Security Administration shall be deemed a reference 
to the Secretary or the Department of Health and Human 
Services, respectively. Where the amount in controversy is 
$2,000 or more, such beneficiary shall be entitled to judicial 
review of any final decision relating to a reconsideration 
described in this subsection.". 
(c) AMENDMENTS TO TITLE XVIII.— 
(1) Section 1817 of such Act (42 U.S.C. 1395i) is amended— 
(A) in subsection (a), by striking "Secretary of Health 
and Human Services" each place it appears and inserting 
"Commissioner of Social Security"; 
(B) in subsection (b), by inserting "the Commissioner 
of Social Security," before "the Secretary of the Treasur/'; 
and 
(C) in subsection (f), by striking "Secretary of Health 
and Human Services" each place it appears and inserting 
"Commissioner of Social Security". 
(2) Section 1840(a) of such Act (42 U.S.C. 1395s(a)) is 
amended— 
(A) in paragraph (1), by striking "Secretary" and insert-
ing "Commissioner of Social Security, and by adding at 
the end the following new sentence: "Such regulations shall 
be prescribed after consultation with the Secretary."; and 
(B) in paragraph (2), by striking "Secretary of Hesdth 
and Human Services" and inserting "Commissioner of 
Social Security". 
(3) Section 1841(b) of such Act (42 U.S.C. 1395t) is amended 
by inserting "the Commissioner of Social Security," before "the 
Secretary of the Treasury". 
(4) Section 1872 of such Act (42 U.S.C. 1395ii) is amended 
by inserting after "title 11" the following: ", except that, in 
appl3dng such provisions with respect to this title, any reference 
therein to the Commissioner of Social Security or the Social 
Security Administration shall be considered a reference to the 
Secretary or the Department of Health and Human Services, 
respectivelv". 
(5) Sections 1866(h)(1), 1869(b)(1), and 1881(g)(3) of such 
Act (42 U.S.C. 1395cc(h)(l), 1395filb)(l), 1395rr(g)(3)) are 
amended by inserting aifler "section 205(g)" the following: ", 
except that, in so applying such sections and in applying section 
205(1) thereto, any reference therein to the Commissioner of 
79-194 O—95—25 : QL 3 Part 2 
108 STAT. 1486 
PUBLIC LAW 103-296—AUG. 15, 1994 
Social Security or the Social Security Administration shall be 
considered a reference to the Secretary or the Department 
of Health and Human Services, respectively. 
(6) 
Section 
1876(c)(5)(B) 
of 
such 
Act (42 
U.S.C. 
1395mm(c)(5)(B)) is amended by adding at the end the follow-
ing: "In applying sections 205(b) and 205(g) as provided in 
this subparagraph, and in applying section 205(1) thereto, any 
reference therein to the Commissioner of Social Security or 
the Social Security Administration shall be considered a ref-
erence to the Secretary or the Department of Health and 
Human Services, respectively.". 
(d) AMENDMENTS TO TITLE XIX.— 
(1) Section 1902(a)(10)(A)(ii)(XI) of such Act (42 U.S.C. 
1396a(a)(10)(A)(ii)(XI)) is amended by striking "Secretary" and 
inserting "Commissioner of Social Security". 
(2) Section 19050*) of such Act (42 U.S.C. 1396d(j)) is 
amended by striking Secretar/' and inserting "Commissioner 
of Social Security". 
(3) Section 1905(q)(2) of such Act (42 U.S.C. 1396d(q)(2)) 
is amended by striking "Secretary" and inserting "Commis-
sioner of Social Security. 
(4) Section 1910(b)(2) of such Act (42 U.S.C. 1396i(b)(2)) 
is amended, in the first sentence, by inserting after "section 
205(g)" the following: ", except that, in so appljdng such sections 
and in applying section 205(1) thereto, any reference therein 
to the Commissioner of Social Security or the Social Security 
Administration shall be considered a reference to the Secretary 
or the Department of Health and Human Services, respec-
tively". 
(5) Section 1918 of such Act (42 U.S.C. 1396q) is amended 
by inserting after "title II" the following: ", except that, in 
so applying such subsections, and in applying section 205(1) 
thereto, with respect to this title, any reference therein to 
the Commissioner of Social Security or the Social Security 
Administration shall be considered a reference to the Secretary 
or the Department of Health and Human Services, respec-
tively". 
(e) AMENDMENTS TO TITLE 5, UNITED STATES CODE.—^Title 5, 
United States Code, is amended— 
(1) by adding at the end of section 5312 the following 
new item: 
"Commissioner of Social Security, Social Security Adminis-
tration."; 
(2) by adding at the end of section 5313 the following 
new item: 
"Deputy Commissioner of Social Security, Social Security 
Administration."; 
(3) by adding at the end of section 5315 the following 
new item: 
"Inspector General, Social Security Administration."; 
(4) by striking "Secretary of Health, Education, and Wel-
fare" each place it appears in section 8141 and inserting 
"Commissioner of Social Security"; and 
(5) by striking "Secretary of Health sind Hum£in Services" 
in section 8347(m)(3) and inserting "Commissioner of Social 
Security". 
(f) AMENDMENTS TO FOOD STAMP ACT OF 1977.— 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1487 
(1) Sections 6(c)(3) and 8(e)(6) of the Food Stamp Act of 
1977 (7 U.S.C. 2015(c)(3) and 2017(e)(6)) are each amended 
by inserting "the Commissioner of Social Security and" before 
"the Secretary of Health and Human Services". 
(2) Sections 6(g), ll(j), and 16(e) of such Act (7 U.S.C. 
2015(g), 2020(j), and 2025(e)) are each amended by striking 
"Secretary of Health and Human Services" each place it appears 
and inserting "Commissioner of Social Security". 
(3) Section ll(i) of such Act (7 U.S.C. 2020(i)) is amended 
by adding ", the Commissioner of Social Security" after "the 
Secretary". 
(g) AMENDMENT TO TITLE 14, UNITED STATES CODE.—Section 
707(e)(3) of title 14, United States Code, is amended by striking 
"Secretary of Health and Human Services" each place it appears 
and inserting "Commissioner of Social Security". 
(h) AMENDMENTS TO INTERNAL REVENUE CODE OF 1986.— 
(1) Subsections (c)(1), (c)(2)(E), (e)(2), (g)(1), (g)(2)(A), and 
(g)(2)(B) of section 1402 of the Internal Revenue Code of 1986 
are amended by striking "Secretary of Health and Human 
Services" each place it appears and inserting "Commissioner 
of Social Security". 
(2) Section 3121(b)(10)(B) of such Code is amended by 
striking "Secretary of Health and Human Services" each place 
it appears and inserting "Commissioner of Social Security". 
(3) Section 3127 of such Code is amended by striking "Sec-
retary of Health and Human Services" each place it appears 
and inserting "Commissioner of Social Security". 
(4) Section 6050F(c)(l)(A) of such Code is amended by 
striking "Secretary of Health and Human Services" and insert-
ing "Commissioner of Social Security". 
(5) Subsections (d) and (f) of section 6057 of such Code 
are amended by striking "Secretary of Health and Human 
Services" each place it appears and inserting "Commissioner 
, 
of Social Security". 
(6) Section 6103(1)(5) of such Code is amended— 
(A) by striking "DEPARTMENT OF HEALTH AND HUMAN 
SERVICES" in the heading and inserting "SOCIAL SECURITY 
ADMINISTRATION"; and 
(B) by striking "Secretary of Health and Human Serv-
ices" and inserting "Commissioner of Social Security". 
(7) Subsections (d)(3)(C) and (e) of section 6402 of such 
Code are amended by striking "Secretary of Health and Human 
Services" each place it appears and inserting "Commissioner 
of Social Security". 
(8) Section 6511(d)(5) of such Code is amended by striking 
"Secretary of Health and Human Services" and inserting 
"Commissioner of Social Security". 
(9)(A) Subsections (b)(2) and (h) of section 9704 of such 
Code are amended by striking "Secretary of Health and Human 
Services" and inserting "Commissioner of Social Security". 
(B) Section 9706 of such Code is amended— 
(i) by striking "Secretary of Health and Human Serv-
ices" each place it appears and inserting "Commissioner 
of Social Security"; 
(ii) in such section as amended by clause (i), by striking 
"Secretary" each place it appears and inserting Commis-
sioner"; and 
., . 
108 STAT. 1488 
PUBLIC LAW 103-296—AUG. 15, 1994 
(iii) in subsection (d)(3), by striking "Secretary's" and 
inserting "Commissioner's", 
(i) AMENDMENTS TO BLACK LUNG BENEFITS ACT.— 
(1) Section 402(c) of the Black Lung Benefits Act (30 U.S.C. 
902(c)) is amended by striking "where used in part B" and 
all that follows through "part C" and inserting "where used 
in part C". 
(2) Part B of such Act (30 U.S.C. 921 et seq.) is amended 
by striking "Secretary of Health, Education, and Welfare" each 
place it appears and inserting "Commissioner of Social Secu-
rity", and by striking "Secretary" each place it otherwise 
appears in reference to the Secretary of Health and Human 
Services and inserting "Commissioner of Social Security". 
(3) Section 426 of such Act (30 U.S.C. 936) is amended— 
(A) in subsection (a), by striking "and the Secretary 
of Health, Education, and Welfare" and inserting ", the 
Commissioner of Social Security, and the Secretary of 
Health and Human Services"; and 
(B) in subsection (b), by striking "the Secretary of 
Health, Education, and Welfare" and inserting "the 
Commissioner of Social Security". 
(4) Section 435 of such Act (30 U.S.C. 945) is amended 
by striking "Secretary of Health, Education, and Welfare" each 
place it appears and inserting "Commissioner of Social Secu-
rity". 
(5) Section 508 of such Act (30 U.S.C. 957) is amended 
by striking "the Secretary of Health, Education, and Welfare," 
and inserting "the Secretary of Health and Human Services, 
the Commissioner of Social Security,". 
(j) AMENDMENTS TO TITLE 31, UNITED STATES CODE.— 
(1) Section 901(b)(2) of title 31, United States Code, is 
amended by adding at the end the following: 
"(H) The Social Security Administration.". 
(2) Section 3720A(f)(2) of such title is amended by striking 
"Secretary of Health and Human Services" each place it appears 
and inserting "Commissioner of Social Security". 
(k) AMENDMENTS TO TITLE 38, UNITED STATES CODE.—Section 
5105 of title 38, United States Code, is amended— 
(1) by striking "Secretary of Health and Human Services" 
each place it appears and inserting "Commissioner of Social 
Security"; and 
(2) by striking the second sentence of subsection (b) and 
inserting the following new sentence: "A copy of each such 
application filed with either the Secretary or the Commissioner, 
together with any additional information and supporting docu-
ments (or certifications thereof) which may have been received 
by the Secretary or the Commissioner with such application, 
and which may be needed by the other official in connection 
therewith, shall be transmitted by the Secretary or the Commis-
sioner receiving the application to the other official.". 
(1) AMENDMENTS TO INSPECTOR GENERAL ACT OF 1978.— 
(1) Section 9(a)(1) of the Inspector General Act of 1978 
(5 U.S.C. App.) is amended— 
(A) by striking "and" at the end of subparagraph (V); 
and 
(B) by adding at the end the following new subpara-
graph: 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1489 
"(W) of the Social Security Administration, the func-
tions of the Inspector Greneral of the Department of Health 
and Human Services which are transferred to the Social 
Security Administration by the Social Security Independ-
ence and Program Improvements Act of 1994 (other than 
functions performed pursuant to section 105(a)(2) of such 
Act), except that such transfers shall be made in accordance 
with the provisions of such Act and shall not be subject 
to subsections (b) through (d) of this section; and". 
(2) Section 11 of such Act (5 U.S.C. App.) is amended— 
(A) in paragraph (1), by inserting "; or the Commis-
sioner of Social Security, Social Security Administration" 
before "; as the case may be"; and 
(B) in paragraph (2), by inserting ", or the Social Secu-
rity Administration" before "; as the case may be". 
(m) SECTION 505 OF THE SOCIAL SECURITY DISABILITY AMEND- 42 use isio 
MENTS OF 1980.—Section 505 of the Social Security Disability 
"°*^-
Amendments of 1980 is amended— 
(1) in subsection (a), by striking "Secretary of Health and 
Human Services" and inserting "Commissioner of Social Secu-
rity"; 
(2) in subsection (a)(3), by amending the first sentence 
to read as follows: "In the case of any experiment or demonstra-
tion project under paragraph (1) which is initiated before June 
10, 1996, the Commissioner may waive compliance with the 
benefit requirements of title II of the Social Security Act, and 
the Secretary of Health and Human Services may (upon the 
request of the Commissioner) waive compliance with the bene-
fits requirements of title XVIII of such Act, insofar as is nec-
essary for a thorough evaluation of the alternative methods 
under consideration."; and 
(3) in subsections (a) and (c), by striking "Secretary" each 
place it otherwise appears and inserting "Commissioner". 
SEC. 109. RULES OF CONSTRUCTION. 
42 USC 901 
(a) REFERENCES TO THE DEPARTMENT OF HEALTH AND HUMAN 
"°*^' 
SERVICES.—^Whenever any reference is made in any provision of 
law (other than this title or a provision of law amended by this 
title), regulation, rule, record, or document to the Department of 
Health and Human Services with respect to such Department's 
functions under the old-age, survivors, and disability insurance 
program under title II of the Social Security Act or the supplemental 
security income program under title XVI of such Act or other 
functions performed by the Social Security Administration pursuant 
to section 105(a)(2) of this Act, such reference shall be considered 
a reference to the Social Security Administration. 
(b) REFERENCES TO THE SECRETARY OF HEALTH AND HUMAN 
SERVICES.—^Whenever any reference is made in any provision of 
law (other than this title or a provision of law amended by this 
title), regulation, rule, record, or document to the Secretary of 
Health and Human Services with respect to such Secretary's func-
tions under the old-age, survivors, and disability insurance program 
under title II of the Social Security Act or the supplemental security 
income program under title XVI of such Act or other functions 
performed by the Commissioner of Social Security pursuant to 
section 105(a)(2) of this Act, such reference shall be considered 
a reference to the Commissioner of Social Security. 
108 STAT. 1490 
PUBLIC LAW 103-296—AUG. 15, 1994 
(c) REFERENCES TO OTHER OFFICERS AND EMPLOYEES.^When-
ever any reference is made in any provision of law (other than 
this title or a provision of law amended by this title), regulation, 
rule, record, or document to any other officer or employee of the 
Department of Health and Human Services with respect to such 
officer or employee's functions under the old-age, survivors, and 
disabilitv insurance program under title II of the Social Security 
Act or tne supplemental security income program under title XVI 
of such Act or other functions performed by the officer or employee 
of the Social Security Administration pursuant to section 105(a)(2) 
of this Act, such reference shall be considered a reference to the 
appropriate officer or employee of the Social Security Administra-
tion. 
42 use 401 
SEC. 110. EFFECTIVE DATES. 
(a) IN GENERAL.—Except as otherwise provided in this title, 
this title, and the amendments made by such title, shall take 
effect March 31,1995. 
(b) TRANSITION RULES.—Section 106 shall take effect on the 
date of the enactment of this Act. 
(c) EXCEPTIONS.—The amendments made by section 103, sub-
sections (b)(4) and (c) of section 105, and subsections (a)(1), (e)(1), 
(e)(2), (e)(3), and (1)(2) of section 108 shall take effect on the date 
of the enactment of this Act. 
TITLE II—PROGRAM IMPROVEMENTS 
RELATING TO OASDI AND SSI 
SEC. 201. RESTRICTIONS ON PAYMENT OF BENEFITS BASED ON 
DISABILITY TO SUBSTANCE ABUSERS. 
(a) AMENDMENTS RELATING TO BENEFITS BASED ON DISABILITY 
UNDER TITLE II OF THE SOCIAL SECURITY ACT.— 
(1) REQUIRED PAYMENT OF BENEFITS TO REPRESENTATIVE 
PAYEES.— 
(A) IN GENERAL.—Section 205(j)(l) of the Social Secu-
rity Act (42 U.S.C. 405(j)(D) is amended— 
(i) by inserting "(A)" after "(j)( 1)"; 
(ii) in the last sentence, by inserting ", if the 
interest of the individual under this title would be 
served thereby," after "alternative representative payee 
or"; and 
(iii) by adding at the end the following new 
subparagraph: 
"(B) In the case of an individual entitled to benefits based 
on disability, if alcoholism or drug addiction is a contributing factor 
material to the Secretary's determination that the individual is 
under a disability, certification of payment of such benefits to 
a representative payee shall be deemed to serve the interest of 
such individual under this title. In any case in which such certifi-
cation is so deemed under this subparagraph to serve the interest 
of an individual, the Secretary shall include, in such individual's 
notification of entitlement, a notice that alcoholism or drug addic-
tion is a contributing factor material to the Secretary's determina-
tion of such individual's disability and that the Secretary is 
therefore required to make a certification of payment of such 
individual's benefits to a representative payee.". 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1491 
(B) 
CONFORMING 
AMENDMENT.—Section 
205(j)(2)(D)(ii)(II) of such Act (42 U.S.C. 402(j)(2)(D)(ii)(II)) 42 USC 405. 
is amended by striking "or under the age of 15" and insert-
ing ", under the age of 15 years, or (if alcoholism or drug 
addiction is a contributing factor material to the Secretary's 
determination that the individual is under a disability) 
is eligible for benefits under this title by reason of disabil-
ity.". 
(C) 90-DAY DELAY IN DEFERRAL OR SUSPENSION OF 
42 USC 405 
BENEFITS FOR CURRENT BENEFICIARIES.—In t h e case of a n 
note. 
individual who, as of 180 days after the date of the enact-
ment of this Act, has been determined to be under a disabil-
ity, if alcoholism or drug addiction is a contributing factor 
material to the determination of the Secretary of Health 
and Human Services that the individual is under a disabil-
ity, the Secretary may, notwithstanding clauses (i) and 
(ii) of section 205(j)(2)(D) of the Social Security Act, make 
direct payment of benefits to such individual during the 
90-day period commencing with the date on which such 
individual is provided the notice described in subparagraph 
(D)(ii) of this paragraph, until such time during such period 
as the selection of a representative payee is made pursuant 
to section 205(j) of such Act. 
(D) EFFECTP/E DATE.— 
(i) GENERAL RULE.—Except as provided in clause 42 use 405 
(ii), the amendments made by this paragraph shall "°^®-
apply with respect to benefits paid in months beginning 
after 180 days after the date of the enactment of this 
Act. 
(ii) TREATMENT OF CURRENT BENEFICIARIES.—In 
any case in which— 
(I) an individual is entitled to benefits based 
on disability (as defined in section 205(j)(7) of the 
Social Security Act, as amended by this section), 
(II) the determination of disability was made 
by the Secretary of Health and Human Services 
during or before the 180-day period following the 
date of the enactment of this Act, and 
(III) alcoholism or drug addiction is a contrib-
uting factor material to the Secretary's determina-
tion that the individual is under a disability, 
the amendments made by this paragraph shall apply 
with respect to benefits paid in months after the month 
in which such individual is notified by the Secretary 
in writing that alcoholism or drug addiction is a 
contributing factor material to the Secretary's deter-
mination and that the Secretary is therefore required 
to make a certification of payment of such individual's 
benefits to a representative payee. 
(E) STUDY REGARDING FEASIBILITY, COST, AND EQUITY 
42 use 405 
OF REQUIRING REPRESENTATIVE PAYEES FOR ALL DISABILITY "ote. 
BENEFICIARIES SUFFERING FROM ALCOHOLISM O
R DRUG 
ADDICTION.— 
(i) STUDY.—^As soon as practicable after the date 
of the enactment of this Act, the Secretary of Health 
and Human Services shall conduct a study of the rep-
108 STAT. 1492 
PUBLIC LAW 103-296—AUG. 15, 1994 
resentative payee program. In such study, the Sec-
retary shall examine— 
(I) the feasibility, cost, and equity of requiring 
representative payees for all individuals entitled 
to benefits based on disability under title II or 
XVI of the Social Security Act who suffer from 
alcoholism or drug addiction, irrespective of 
whether the alcoholism or drug addiction was 
material in any case to the Secretarj^'s determina-
tion of disability, 
(II) the feasibility, cost, and equity of providing 
benefits through non-cash means, including (but 
not limited to) vouchers, debit cards, and electronic 
benefits transfer systems, 
(III) the extent to which child beneficiaries 
are afflicted by drug addition or alcoholism and 
ways of addressing such affliction, including the 
feasibility of requiring treatment, and 
(IV) the extent to which children's representa-
tive payees are afflicted by drug addiction or 
alcoholism, and methods to identify children's rep-
resentative payees Eifflicted by drug addition or 
alcoholism and to ensure that benefits continue 
to be provided to beneficiaries appropriately. 
(ii) REPORT.—Not later than December 31, 1995, 
the Secretary shall transmit to the Committee on Ways 
and Means of the House of Representatives and the 
Committee on Finance of the Senate a report setting 
forth the findings of the Secretary based on such study. 
Such report shall include such recommendations for 
administrative or legislative changes as the Secretary 
considers appropriate. 
(2) INCREASED RELIANCE ON PROFESSIONAL REPRESENTATIVE 
PAYEES.— 
(A) PREFERENCE REQUIRED FOR ORGANIZATIONAL REP-
RESENTATIVE PAYEES.—Section 205(j)(2)(C) of such Act (42 
U.S.C. 405(j)(2)(C)) is amended by adding at the end the 
following new clause: 
"(v) In the case of an individual entitled to benefits based 
on disability, if alcoholism or drug addiction is a contributing factor 
material to the Secretary's determination that the individual is 
under a disability, 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 Federal, State, or local government agency whose 
mission is to carry out income maintenance, social service, 
or health care-related activities, 
"(III) a State or local government agency with fiduciary 
responsibilities, or 
"(FV) a designee of an agency (other than of a Federal 
agency) referred to in the preceding subclauses of this clause, 
if the Secretary deems it appropriate, 
unless the Secretary determines that selection of a family member 
would be appropriate.". 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1493 
(B) AVAILABILITY OF PUBLIC AGENCIES AND OTHER 
QUALIFIED ORGANIZATIONS TO SERVE AS REPRESENTATIVE 
PAYEES.— 
(i) ALLOWABLE FEES.—Section 205(j)(4)(A) of such 
Act (42 U.S.C. 405(j)(4)) is amended— 
(I) by redesignating clauses (i) and (ii) as 
subclauses (I) and (II), respectively; 
(II) by inserting "(i)" after "(4)(A)"; 
(III) by striking subclause (II) (as redesignated 
nvA 
by subclause (I) of this clause) and inserting the 
following: 
"(II) $25.00 per month ($50.00 per month in any case 
in which the individual is entitled to benefits based on disability 
and alcoholism or drug addiction is a contributing factor mate-
rial to the Secretary's determination that the individual is 
under a disability)."; 
(IV) by inserting, after and below subclause 
(II) (as amended), the following new sentence: 
"The Secretary shall adjust annually (after 1995) each dollar 
amount set forth in subclause (II) under procedures providing for 
adjustments in the same manner and to the same extent as adjust-
ments are provided for under the procedures used to adjust benefit 
amounts under section 215(i)(2)(A), except that any amount so 
adjusted that is not a multiple of $1.00 shall be rounded to the 
nearest multiple of $1.00."; and 
(V) by adding at the end the following new 
clause: 
"(ii) In the case of an individual who is no longer currently 
entitled to monthly insurance benefits under this title but to whom 
all past-due benefits have not been paid, for purposes of clause 
(i), any amount of such past-due benefits payable in any month 
shall be treated as a monthly benefit referred to in clause (i)(I).". 
(ii) INCLUSION OF STATE AND LOCAL AGENCIES AS 
QUALIFIED 
ORGANIZATIONS.—Section 
205(j)(4)(B) of 
such Act (42 U.S.C. 405(j)(4)(B)) is amended— 
(I) by inserting "State or local government 
agency whose mission is to carry out income 
maintenance, social service, or health care-related 
activities, any State or local government agency 
with fiduciary 
responsibilities, or any" after 
"means any"; 
(II) by striking "representative payee and 
which," and inserting "representative payee, if 
such agency,"; 
(III) by striking ", and" at the end of clause 
(ii) and inserting a period; and 
(IV) by striking clause (iii). 
(iii) RETROACTIVE REPEAL OF SUNSET.—Effective 
July 1, 1994, section 205(j)(4) of such Act (42 U.S.C. 
405(j)(4)) is amended by striking subparagraph (D). 
(C) DEFINITION.—Section 205(j) of such Act (42 U.S.C. 
4050*)) is amended by adding at the end the following 
new paragraph: 
"(7) For purposes of this subsection, the term 'benefit based 
on disability' of an individual means a disability insurance benefit 
of such individual under section 223 or a child's, widow's, or widow-
108 STAT. 1494 
PUBLIC LAW 103-296—AUG. 15, 1994 
er's insurance benefit of such individual under section 202 based 
on such individual's disability.". 
42 use 405 
(D) EFFECTIVE DATE.—Except as provided in subpara-
" 
graph (B)(iii), the amendments made by this paragraph 
shall apply with respect to months beginning after 90 days 
after the date of the enactment of this Act. 
(3) NONPAYMENT OR TERMINATION OF BENEFITS.— 
(A) IN GENERAL.—Section 225 of such Act (42 U.S.C. 
425) is amended— 
(i) by striking the heading and inserting the follow-
ing: 
"ADDITIONAL RULES RELATING TO BENEFITS BASED ON DISABILITY 
"Suspension of Benefits"; 
(ii) by inserting before subsection (b) the following 
new heading: 
"Continued Payments During Rehabilitation Program"; 
and 
(iii) by adding at the end the following new sub-
section: 
"Nonpayment or Termination of Benefits Where Entitlement 
Involves Alcoholism or Drug Addiction 
"(c)(1)(A) In the case of any individual entitled to benefits 
based on disability, if alcoholism or drug addiction is a contributing 
factor material to the Secretary's determination that such individual 
is under a disability, such individual shall comply with the provi-
sions of this subsection. In any case in which an individual is 
required to comply with the provisions of this subsection, the Sec-
retary shall include, in such individual's notification of entitlement, 
a notice informing such individual of such requirement. 
"(B) Notwithstanding any other provision of this title, if an 
individual who is required under subparagraph (A) to comply with 
the provisions of this subsection is determined by the Secretary 
not to be in compliance with the provisions of this subsection, 
such individual's benefits based on disability shall be suspended 
for a period— 
"(i) commencing with the first month following the month 
in which such individual is notified by the Secretary of the 
determination of noncompliance and that the individual's bene-
fits will be suspended, and 
"(ii) ending with the month preceding the first month, 
after the determination of noncompliance, in which such 
individual demonstrates that he or she has reestablished and 
maintained compliance with such provisions for the applicable 
period specified in paragraph (3). 
(2)(A) An individual described in paragraph (1) is in compliance 
with the requirements of this subsection for a month if in such 
month— 
"(i) such individual undergoes substance abuse treatment 
which is appropriate for such individual's condition diagnosed 
as alcoholism or drug addiction and for the stage of such 
individual's rehabilitation and which is conducted at an institu-
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1495 
tion or facility approved for purposes of this subsection by 
the Secretary, and 
"(ii) such individual complies in such month with the terms, 
conditions, and requirements of such treatment and with 
requirements imposed by the Secretary under paragraph (5). 
"(B) An individual described in paragraph (1) may be deter-
mined as failing to comply with the requirements of this subsection 
for a month only if treatment meeting the requirements of subpara-
graph (A)(i) is available for that month, as determined pursuant 
to regulations of the Secretary. 
"(3) The applicable period specified in this paragraph is— 
"(A) 2 consecutive months, in the case of a first determina-
tion that an individual is not in compliance with the require-
ments of this subsection, 
"(B) 3 consecutive months, in the case of the second such 
determination with respect to the individual, or 
"(C) 6 consecutive months, in the case of the third or 
subsequent such determination with respect to the individual. 
"(4) In any case in which an individual's benefit is suspended 
for a period of 12 consecutive months for failure to comply with 
treatment described in paragraph (2) of this subsection, the month 
following such period shall be deemed, for purposes of section 
223(a)(1) or subsection (d)(l)(G)(i), (e)(1), or (f)(1) of section 202 
(as applicable), the termination month with respect to such entitle-
ment. 
"(5)(A) The Secretary shall provide for the monitoring and 
testing of individuals who are receiving benefits under this title 
and who as a condition of payment of such benefits are required 
to be undergoing treatment under paragraph (1) and complying 
with the terms, conditions, and requirements thereof as described 
in paragraph (2)(A), in order to assure such compliance. 
"(B) The Secretary, in consultation with drug and alcohol treat- Regulations. 
ment professionals, shall issue regulations— 
"(i) defining appropriate treatment for alcoholics and drug 
addicts who are subject to appropriate substance abuse treat-
ment required under this subsection, and 
"(ii) establishing guidelines to be used to review and evalu-
ate their compliance, including measures of the progress 
expected to be achieved by participants in such programs. 
"(C)(i) For purposes of carrying out the requirements of sub-
paragraphs (A) and (B), the Secretary shall provide for the establish-
ment of one or more referral and monitoring agencies for each 
State. 
"(ii) Each referral and monitoring agency for a State shall— 
"(I) identify appropriate placements, for individuals resid-
ing in such State who are entitled to benefits based on disability 
and with respect to whom alcoholism or drug addiction is 
a contributing factor material to the Secretary's determination 
that they are under a disability, where they may obtain treat-
ment described in paragraph (2)(A), 
"(II) refer such individuals to such placements for such 
treatment, and 
"(III) monitor compliance with the requirements of para-
graph (2)(A) by individuals who are referred by the agency 
to such placements and promptly report failures to comply 
to the Secretary. 
, 
108 STAT. 1496 
PUBLIC LAW 103-296—AUG. 15, 1994 
"(D) There are authorized to be transferred from the Federal 
Old-Age and Survivors Insurance Trust Fund and the Federal 
Disability Insurance Trust Fund such sums as are necessary to 
carry out the requirements of this paragraph for referral, monitor-
ing, and testing. 
"(6)(A) In the case of any individual who is entitled to a benefit 
based on disability for any month, if alcoholism or drug addiction 
is a contributing factor material to the Secretary's determination 
that the individual is under a disability, pa5nnent of any past-
due monthly insurance benefits under this title to which such 
individual is entitled shall be made in any month only to the 
extent that the sum of— 
"(i) the amount of such past-due benefit paid in such month, 
and 
"(ii) the amount of any benefit for the preceding month 
under such current entitlement which is payable in such month, 
does not exceed, subject to subparagraph (B), twice the amount 
of such individual's benefit for the preceding month (determined 
without applying any reductions or deductions under this title). 
"(B)(i) In the case of an individual who is no longer currently 
entitled to monthly insurance benefits under this title but to whom 
any amount of past-due benefits has not been paid, for purposes 
of subparagraph (A), such individual's monthly insurance benefit 
for such individual's last month of entitlement shall be treated 
as such individual's benefit for the preceding month. 
"(ii) For the first month in which an individusd's past-due 
benefits referred to in subparagraph (A) are paid, the amount 
of the limitation provided in subparagraph (A) shall be increased 
by the amount of any debts of such individual related to housing 
which are outstanding as of the end of the preceding month 
and which are resulting in a high risk of homelessness for such 
individual. 
"(C) Upon the death of an individual to whom pa3rment of 
past-due benefits has been limited under subparagraph (A), any 
amount of such past-due benefits remaining unpaid shall be treated 
as an underpajnnent for purposes of section 204. 
"(D) In the case of an individual who would be entitled to 
benefits based on disability but for termination of such benefits 
under paragraph (4) or (7), such individual shall be entitled to 
payment of past-due benefits under this paragraph as if such 
individual continued to be entitled to such terminated benefits. 
"(7)(A) Subject to subparagraph (B), in the case of any individ-
ual entitled to benefits based on disability, if— 
"(i) alcoholism or drug addiction is a contributing factor 
material to the Secretary's determination that such individual 
is under a disability, and 
"(ii) as of the end of the 36-month period beginning with 
such individual's first month of entitlement, such individual 
would not otherwise be disabled but for alcoholism or drug 
addiction, 
the month following such 36-month period shall be deemed, for 
purposes of section 223(a)(1) or subsection (d)(l)(G)(i), (e)(1), or 
(f)(1) of section 202 (as applicable), the termination month with 
respect to such entitlement. Such individual whose entitlement 
is terminated under this paragraph may not be entitled to benefits 
based on disability for any month following such 36-month period 
if, in such following month, alcoholism or drug addiction is a contrib-
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1497 
uting factor material to the Secretary's determination that such 
individual is under a disability. 
"(B) In determining whether the 36-month period referred to 
in subparagraph (A) has elapsed— 
"(i) a month shall not be taken into account unless the 
Secretary determines, under regulations of the Secretary, that 
treatment required under this subsection is available to the 
individual for the month, and 
"(ii) any month for which a suspension is in effect for 
the individual under paragraph (1)(B) shall not be taken into 
account. 
"(8) Monthly insurance benefits under this title which would 
be payable to any individual (other than the disabled individual 
to whom benefits are not payable by reason of this subsection) 
on the basis of the wages and self-employment income of such 
disabled individual but for the provisions of paragraph (1), (4), 
or (7) shall be payable as though such paragraph did not apply. 
"(9) For purposes of this subsection, the term 'benefit based 
on disability' of an individual means a disability insurance benefit 
of such individual under section 223 or a child's, widow's, or widow-
er's insurance benefit of such individual under section 202 based 
on the disability of such individual.". 
(B) REPORT.—Not later than December 31, 1996, the 
Secretary shall submit to the Committee on Ways and 
Means of the House of Representatives and the Committee 
on Finance of the Senate a full and complete report on 
the Secretary's activities under paragraph (5) of section 
225(c) of the Social Security Act (as amended l3y subpara-
graph (A)). Such report shall include the number and 
percentage of individuals referred to in such paragraph 
who have not received regular drug testing since the effec-
tive date of such paragraph. 
(C) SUNSET OF 36-MONTH RULE.—Section 225(c)(7) of 
42 use 425 
the Social Security Act (added by subparagraph (A)) shall 
cease to be effective with respect to benefits for months 
after September 2004. 
(D) PRESERVATION OF MEDICARE BENEFITS.— 
(i) Section 226 of such Act (42 U.S.C. 426) is 
amended by adding at the end the following: 
"(i) For purposes of this section, each person whose monthly 
insurance benefit for any month is terminated or is otherwise 
not payable solely by reason of paragraph (1) or (7) of section 
225(c) shall be treated as entitled to such benefit for such month.". 
(ii) Section 226A of such Act (42 U.S.C. 426A) 42 use 426-1. 
is amended by adding at the end the following: 
"(c) For purposes of this section, each person whose monthly 
insurance benefit for any month is terminated or is otherwise 
not payable solely by reason of paragraph (1) or (7) of section 
225(c) shall be treated as entitled to such benefit for such month.". 
(E) EFFECTIVE DATE.— 
42 use 425 
(i) IN GENERAL.—Except as otherwise provided in 
^°^-
this paragraph, the amendments made by this para-
graph shall apply with respect to benefits based on 
disability (as defined in section 225(c)(9) of the Social 
Security Act, added by this section) which are other-
wise payable in months beginning after 180 days after 
the date of the enactment of this Act. The Secretary Regulations. 
note. 
108 STAT. 1498 
PUBLIC LAW 103-296—AUG. 15, 1994 
of Health and Human Services shall issue regulations 
necessary to carry out the amendments made by this 
paragraph not later than 180 days after the date of 
the enactment of this Act. 
;^' 
(ii) REFERRAL AND MONITORING AGENCIES.—Section 
225(c)(5) of the Social Security Act (added by this sub-
section) shall take effect 180 days after the date of 
the enactment of this Act. 
(iii) 
TERMINATION AFTER 36 
MONTHS.—Section 
225(c)(7) of the Social Security Act (added by this sub-
section) shall apply with respect to benefits based on 
disability (as so defined) for months beginning after 
180 days after the date of the enactment of this Act. 
(F) TRANSITION RULES FOR CURRENT BENEFICIARIES.— 
In any case in which an individual is entitled to benefits 
based on disability, the determination of disability was 
made by the Secretary of Health and Human Services 
during or before the 180-day period following the date 
of the enactment of this Act, and alcoholism or drug addic-
tion is a contributing factor material to the Secretary's 
determination that the individual is under a disability— 
(i) 
TREATMENT REQUIREMENT.—Paragraphs 
(1) 
through (4) of section 225(c) of the Social Security 
Act (added by this subsection) shall apply only with 
respect to benefits paid in months after the month 
in which such individual is notified by the Secretary 
in writing that alcoholism or drug addiction is a 
contributing factor material to the Secretary's deter-
mination and that such individual is therefore required 
to comply with the provisions of section 225(c) of such 
Act. 
(ii) TERMINATION AFTER 36 MONTHS.— 
(I) IN GENERAL.—For purposes of section 
225(c)(7) of the Social Security Act (added by this 
subsection), the first month of entitlement begin-
ning after 180 days after the date of the enactment 
of this Act shall be treated as the individual's 
first month of entitlement to such benefits. 
(II) 
CONCURRENT BENEFICIARIES CURRENTLY 
UNDER TREATMENT.—In any case in which the 
individual is also entitled to benefits under title 
XVI and, as of 180 days after the date of the 
enactment of this Act, such individual is under-
going treatment required under section 1611(e)(3) 
of the Social Security Act (as in effect immediately 
before the date of the enactment of this Act), the 
Secretary of Health and Human Services shall 
notify such individual of the provisions of section 
225(c)(7) of the Social Security Act (added by this 
subsection) not later than 180 days after the date 
of the enactment of this Act. 
(III) CONCURRENT BENEFICIARIES NOT CUR-
RENTLY UNDER TREATMENT.—In any case in which 
the individual is also entitled to benefits under 
title XVI but, as of 180 days sifter the date of 
the enactment of this Act, such individual is not 
undergoing treatment described in subclause (II), 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1499 
section 225(c)(7) (added by this subsection) shall 
apply only with respect to benefits for months 
after the month in which treatment required under 
section 1611(e)(3) of the Social Security Act (as 
amended by subsection (b)) is available, as deter-
mined under regulations of the Secretary of Health 
and Human Services, and the Secretary notifies 
such individual of the availability of such treat-
ment and describes in such notification the provi-
sions of section 225(c)(7) of the Social Security 
Act (added by this subsection). 
(4) IRRELEVANCE OF LEGALITY OF SERVICES PERFORMED IN 
DETERMINING SUBSTANTIAL GAINFUL 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 demonstrate an individ-
ual's ability to engage in substantial gainful activity, the Secretary 
shall apply the criteria described in subparagraph (A) with respect 
to services performed by any individual without regard to the 
legality of such services.". 
(B) 
CONFORMING AMENDMENT RELATING TO TRIAL 
WORK.—Section 222(c)(2) of such Act (42 U.S.C. 422(c)(2)) 
is amended by inserting "(whether legal or illegal)" after 
"activity". 
(C) EFFECTIVE DATE.—The amendments made by this 42 use 422 
paragraph shall take effect on the date of the enactment 
of this Act. 
(b) 
AMENDMENTS 
RELATING 
TO 
SUPPLEMENTAL SECURITY 
INCOME BENEFITS UNDER TITLE XVI 
OF THE SOCIAL SECURITY 
ACT.— 
(1) REQUIRED PAYMENT OF BENEFITS TO REPRESENTATIVE 
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)— 
(I) by inserting "(I)" after "(ii)"; 
(II) by striking "or in the case of any individual 
or 
eligible 
spouse 
referred 
to 
in 
section 
1611(e)(3)(A),"; and 
(III) by adding after and below the end the 
following: 
"(II) In the case of an individual eligible for benefits under 
this title by reason of disability, if alcoholism or drug addiction 
is a contributing factor material to the Secretary's determination 
that the individual is disabled, the payment of such benefits to 
a representative payee shall be deemed to serve the interest of 
the individual under this title. In any case in which such pajmient 
is so deemed under this subclause to serve the interest of an 
individual, the Secretary shall include, in the individual's notifica-
tion of such eligibility, a notice that alcoholism or drug addiction 
is a contributing factor material to the Secretary's determination 
that the individual is disabled and that the Secretary is therefore 
note. 
108 STAT. 1500 
PUBLIC LAW 103-296—AUG. 15, 1994 
required to pay the individual's benefits to a representative payee."; 
and 
(ii) in clause (iii), by striking "to the individual 
or eligible spouse or to an alternative representative 
payee of the individual or eligible spouse" and inserting 
"to an alternative representative payee of the individ-
ual or eligible spouse or, if the interest of the individual 
under this title would be served thereby, to the individ-
ual 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 alcohol-
ism or drug addiction is a contributing factor material 
to the Secretary's determination that the individual is dis-
abled) is eligible for benefits under this title by reason 
of disability.". 
42 use 1383 
(C) EFFECTIVE DATE.—The amendments made by this 
^°^' 
paragraph shall apply with respect to 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 ORGANIZATIONAL REP-
RESENTATIVE PAYEES.—Section 1631(a)(2)(B) of such Act 
(42 U.S.C. 1383(a)(2)(B)), as amended by paragraph (1)(B) 
of this subsection, is amended— 
(i) by redesignating clauses (vii) through (xii) as 
clauses (viii) through (xiii), respectively; 
(ii) by inserting sifter clause (vi) the following: 
"(vii) In the case of an individual eligible for benefits under 
this title by reason of disability, if alcoholism or drug addiction 
is a contributing factor material to the Secretary'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 Federal, State, or local government agency whose 
mission is to carry out income maintenance, social service, 
or health care-related activities; 
"(III) a State or local government agency with fiduciary 
responsibilities; or 
"(IV) a designee of an agency (other than of a Federal 
agency) referred to in the preceding subclauses of this clause, 
if the Secretary deems it appropriate, 
unless the Secretary determines that selection of a family member 
would be appropriate."; 
(iii) in clause (viii) (as so redesignated), by striking 
"clause (viii)" and inserting "clause (ix)"; 
(iv) in clause (ix) (as so redesignated), by striking 
"(vii)" and inserting "(viii)"; 
(v) in clause (xiii) (as so redesignated)— 
(I) by striking "(xi)" and inserting "(xii)"; and 
(II) by striking "(x)" and inserting "(xi)". 
(B) 
AVAILABILITY OF PUBLIC AGENCIES AND OTHER 
QUALIFIED ORGANIZATIONS TO SERVE AS REPRESENTATIVE 
PAYEES.— 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1501 
(i) ALLOWABLE FEES.—Section 1631(a)(2)(D) of such 
Act (42 U.S.C. 1383(a)(2)(D)) is amended— 
(I) in clause (i)— 
(aa) by striking subclause (II) and insert-
ing the following: 
"(II) $25.00 per month ($50.00 per month in any case 
in which an individual is eligible for benefits under this title 
by reason of disability and alcoholism or drug addiction is 
a contributing factor material to the Secretary's determination 
that the individual is disabled)."; and 
(bb) by inserting after the 1st sentence 
the following: 
"The Secretary shall adjust ginnually (after 1995) each dollar 
amount set forth in subclause (II) of this clause under procedures 
providing for adjustments in the same manner and to the same 
extent as adjustments are provided for under the procedures used 
to adjust benefit amounts under section 215(i)(2)(A), except that 
any amount so adjusted that is not a multiple of $1.00 shall be 
rounded to the nearest multiple of $1.00."; and 
(II) by adding at the end the following: 
"(v) In the case of an individual who is no longer eligible 
for benefits under this title but to whom any amount of past-
due benefits under this title has not been paid, for purposes of 
clause (i), any amount of such past-due benefits payable in any 
month shall be treated as a monthly benefit referred to in clause 
(i)(I).". 
(ii) INCLUSION OF STATE AND LOCAL AGENCIES AS 
QUALIFIED ORGANIZATIONS.—Section 1631(a)(2)(D)(ii) of 
such Act (42 U.S.C. 1383(a)(2)(D)(ii)) is amended— 
(I) by inserting "State or local government 
agency whose mission is to carry out income 
maintenance, social service, or health care-related 
activities, 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 inserting a period; and 
(cc) by striking item (cc). 
(iii) RETROACTIVE REPEAL OF SUNSET.— 
(I) REPEAL.—Effective July 1, 1994, section 
1631(a)(2)(D) of such Act (42 U.S.C. 1383(a)(2)(D)) 
is amended by striking clause (iv). 
(II) 
CONFORMING 
AMENDMENT.—Section 
1631(a)(2)(D) of such Act (42 U.S.C. 1383(a)(2)(D)) 
"' 
is amended by redesignating clause (v) (as added 
by clause (i)(II) of this subparagraph) as clause 
(iv). 
(C) EFFECTIVE DATE.—Except as provided in subpara- 
42 use 1383 
graph (B)(iii)(I), the amendments made by this paragraph ^°^^-
108 STAT. 1502 
PUBLIC LAW 103-296—AUG. 15, 1994 
shall apply with respect to months beginning after 90 days 
after the date of the enactment of this Act. 
(3) NONPAYMENT OR TERMINATION OF BENEFITS.— 
(A) IN GENERAL.—Section 1611(e)(3)(A) of such Act (42 
U.S.C. 1382(e)(3)(A)) is amended to read as follows: 
"(A)(i)(I) In the case of any individual eligible for benefits 
under this title solely by reason of disability, if alcoholism or drug 
addiction is a contributing factor material to the Secretary's deter-
mination that the individual is disabled, the individual shall comply 
with the provisions of this subparagraph. In any case in which 
an individual is required to comply with the provisions of this 
subparagraph, the Secretary shall include in the individual's 
notification of such ehgibility a notice informing the individual 
of such requirement. 
"(II) Notwithstanding any other provision of this title, if an 
individual who is required under subclause (I) to comply with 
the requirements of this subparagraph is determined by the Sec-
retary not to be in compliance with the provisions of this sub-
paragraph, the individual's benefits under this title by reason of 
disability shall be suspended for a period— 
"(aa) commencing with the first month following the month 
in which the individual is notified by the Secretary of the 
determination of noncompliance and that the individual's bene-
fits will be suspended; and 
"(bb) ending with the month preceding the first month, 
after the determination of noncompliance, in which the individ-
ual demonstrates that he or she has reestablished and main-
* tained compliance with such provisions for the applicable period 
specified in clause (iii). 
"(ii)(I) An individual described in clause (i) is in compliance 
with the requirements of this subparagraph for a month if in 
such month— 
"(aa) the individual undergoes substance abuse treatment, 
which is appropriate for the individual's condition diagnosed 
as alcoholism or drug addiction and for the stage of the individ-
ual's rehabilitation and which is conducted at an institution 
r 
or facility approved for purposes of this subparagraph by the 
Secretary; and 
"(bb) the individual complies in such month with the terms, 
conditions, and requirements of the treatment and with require-
ments imposed by the Secretary under this paragraph. 
"(II) An individual described in clause (i) may be determined 
as failing to comply with the requirements of this subparagraph 
for a month only if treatment meeting the requirements of subclause 
(I)(aa) is available for the month, as determined pursuant to regula-
tions of the Secretary. 
"(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 individual; or 
"(III) 6 consecutive months, in the case of the 3rd or subse- ^ 
quent such determination with respect to the individual. 
"(iv) An individual who is not in compliance with this paragraph 
for 12 consecutive months shall not be eligible for supplemental 
security income benefits under this title. The preceding sentence 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1503 
shall not be construed to prevent the individual from reapplying 
and becoming eligible for such benefits. 
"(v)(I) In the case of any individual eligible for benefits under 
this title by reason of disability, if— 
"(aa) alcoholism or drug addiction is a contributing factor 
material to the Secretary's determination that the individual 
is disabled; and 
"(bb) as of the end of the 36-month period beginning with 
the 1st month for which such benefits by reason of disability 
are payable to the individual, the individual would not other-
wise be disabled but for alcoholism or drug addiction, 
the individual shall not be eligible for such benefits by reason 
of disability for any month following such 36-month period if, in 
such following month, alcoholism or drug addiction would be a 
contributing factor material to the Secretary's determination that 
' 
the individual is disabled, notwithstanding section 1619(a). 
"(II) An individual whose entitlement to benefits under title 
II based on disability has been terminated by reason of section 
225(c)(7) shall not be eligible for benefits under this title by reason 
of disability, if alcoholism or drug addiction is a contributing factor 
material to the Secretary's determination that the individual is 
disabled, for any month lafter the individual's termination month 
(within the meaning of section 223(a)(1) or subsection (d)(l)(G)(i), 
(e)(1), or (f)(1) of section 202, as applicable) with respect to such 
benefits. 
"(Ill) Any month for which a suspension is in effect for the 
individual under clause (i)(II) shall not be taken into account in 
determining whether any 36-month period referred to in this clause 
has elapsed. 
"(vi)(I) In the case of any individual who is eligible for benefits 
under this title for any month solely by reason of disability, if 
alcoholism or drug addiction is a contributing factor material to 
the Secretary's determination that the individual is disabled, pay-
ment of any benefits under this title the payment of which is 
past due shall be made in any month only to the extent that 
the sum o
f
— 
"(aa) the amount of the past-due benefit paid in the month; 
and 
"(bb) the amount of any benefit under this title which 
is payable to the individual for the month, 
does not exceed twice the maximum benefit payable under this 
title to an eligible individual for the preceding month. 
"(II) For the first month in which an individual's past-due 
benefits referred to in subclause (I) are paid, the amount of the 
limitation provided in subclause (I) shall be increased by the amount 
of any debts of the individual related to housing which are outstand-
ing as of the end of the preceding month and which are resulting 
in a high risk of homelessness for the individual. 
"(Ill) Upon the death of an individual to whom payment of 
past-due benefits has been limited under subclause (I), any amount 
of such past-due benefits remaining unpaid shall be treated as 
an underpayment for purposes of section 1631(b)(1)(A). 
"(IV) As used in this clause, the term 'benefits under this 
title' includes supplementary payments pursuant to an agreement 
for Federal administration under section 1616(a), and payments 
pursuant to an agreement entered into under section 212(b) of 
Public Law 93-66. 
108 STAT. 1504 
PUBLIC LAW 103-296—AUG. 15, 1994 
Regulations. 
42 use 1382 
note. 
42 use 1382 
note. 
42 use 1383c. 
"(V) In the case of an individual who would be eligible for 
benefits under this title by reason of disability but for termination 
of such benefits under clause (iv) or (v), the individual shall be 
eligible for payment of past-due benefits under this clause as if 
the individual continued to be eligible for such terminated benefits. 
"(VI) Subclause (I) shall not apply to pajrments under section 
1631(g).". 
(B) REFERRAL, MONITORING, AND TREATMENT.— 
(i) IN GENERAL.—Section 1611(e)(3)(B) of such Act 
(42 U.S.C. 1382(e)(3)(B)) is amended— 
(I) by inserting "(i)" after "(B)"; 
(II) by striking the 2nd sentence; and 
(III) by adding after and below the end 
the following: 
"(ii) The Secretary, in consultation with drug and alcohol treat-
ment professionals, shall issue regulations— 
"(I) defining appropriate treatment for alcoholics and drug 
addicts who are subject to required appropriate substance abuse 
treatment under this subparagraph; and 
"(II) establishing guidelines to be used to review and evalu-
ate their compliance, including measures of the progress 
expected to be achieved by participants in such programs. 
"(iii)(I) For purposes of carrying out the requirements of clauses 
(i) and (ii), the Secretary shall provide for the establishment of 
1 or more referral and monitoring agencies for each State. 
"(II) Each referral and monitoring agency for a State shall— 
"(aa) identify appropriate placements, for individuals resid-
ing in the State who are eligible for benefits under this title 
by reason of disability and with respect to whom alcoholism 
or drug addiction is a contributing factor material to the Sec-
• retary's determination that they are disabled, where they may 
obtain treatment described in subparagraph (A)(ii)(I); 
"(bb) refer such individuals to such placements for such 
treatment; and 
"(cc) monitor compliance with the requirements of subpara-
graph (A) by individuals who are referred by the agency to 
such placements, and promptly report to the Secretary any 
failure to comply with such requirements.". 
(ii) REPORT.—Not later than December 31, 1996, 
the Secretary shall submit to the Committee on Ways 
and Means of the House of Representatives and the 
Committee on Finance of the Senate a full and com-
plete report on the Secretary's activities under section 
1611(e)(3)(B) of the Social Security Act. The report 
shall include the number and percentage of individuals 
referred to in such paragraph who have not received 
regular drug testing since the effective date of the 
amendments made by clause (i) of this subparagraph. 
(C) 
SUNSET 
OF 
36-MONTH 
RULE.—Section 
1611(e)(3)(A)(v) of the Social Security Act (added by 
subparagraph (A) of this paragraph) shall cease to be effec-
tive with respect to benefits for months after September 
2004. 
(D) PRESERVATION OF MEDICAID BENEFITS.—Section 
1634 of such Act (42 U.S.C. 13283c) is amended by adding 
at the end the following: 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1505 
"(e) Each person to whom benefits under this title by reason 
of disability are not payable for any month solely by reason of 
clause (i) or (v) of section 1611(e)(3)(A) shall be treated, for purposes 
of title XIX, as receiving benefits under this title for the month.". 
(E) EFFECTIVIi: DATE.— 
42 USC 1382 
(i) IN GENERAL.—Except as otherwise provided in "
*
^
*
^
® 
this paragraph, the amendments made by this para-
graph shall apply with respect to supplemental security 
income benefits under title XVI of the Social Security 
Act by reason of disability which are otherwise payable 
in months beginning after 180 days after the date 
of the enactment of this Act. The Secretary of Health 
and Human Services shall issue regulations necessary 
to carry out the amendments made by this paragraph 
not later than 180 days after such date of enactment. 
(ii) REFERRAL AND MONITORING AGENCIES.—The 
amendments made by subparagraph (B) shall take 
effect 180 days eifter the date of the enactment of 
this Act. 
(iii) TERMINATION AFTER 36 MONTHS.—Clause (v) 
of section 1611(e)(3)(A) of the Social Security Act 
(added by the amendment made by subparagraph (A) 
of this paragraph) shall apply with respect to supple-
mental security income benefits under title XVI of 
the Social Security Act by reason of disability for 
months beginning after 180 days after the date of 
the enactment of this Act. 
(F) TRANSITION RULES FOR CURRENT BENEFICIARIES.— 42 use 1382 
In any case in which an individual is eligible for supple- 
"°*^ 
mental security income benefits under title XVI of the 
Social Security Act by reason of disability, the determina-
tion of disability was made by the Secretary of Health 
and Human Services during or before the 180-day period 
following the date of the enactment of this Act, and alcohol-
ism or drug addiction is a contributing factor material 
to the Secretary's determination that the individual is dis-
abled, for purposes of section 161 l(e)(3)(A)(v) of the Social 
Security Act (added by the amendment made by subpara-
graph (A) of this paragraph)— 
(i) the first month of such eligibility beginning 
after 180 daj^s after the date of the enactment of this 
Act shall be treated as the individual's first month 
of such eligibility; and 
^ 
(ii) the Secretary shall notify the individual of 
the requirements of the amendments made by this 
paragraph no later than 180 days after the date of 
the enactment of this Act. 
(4) IRRELEVANCE OF LEGALITY OF SUBSTANTIAL 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 determina-
tions under this title with respect to substantial gainful 
activity, without regard to the legality of the activity.". 
(B) 
EFFECTIVE 
DATE.—The amendment 
made by 42 use I382c 
subparagraph (A) shall take effect on the date of the enact- "
^
*
^
®
-
mentof this Act. 
108 STAT. 1506 
PUBLIC LAW 103-296—AUG. 15, 1994 
4
2 use 425 
(c) DEMONSTRATION PROJECTS.— 
^°^- 
(1) IN GENERAL.—The Secretary of Health and Human 
Services shall develop and carry out demonstration projects 
designed to explore innovative referral, monitoring, and treat-
ment approaches with respect to— 
(A) individuals who are entitled to disability 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 supplemental secu-
rity 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 determination that individuals 
are under a disability. The Secretary may include in such 
demonstration projects individuals who are not described in 
either subparagraph (A) or subparagraph (B) if the inclusion 
of such individuals is necessary to determine the efficacy of 
various monitoring, referral, and treatment approaches for 
individuals described in subparagraph (A) or (B). 
(2) SCOPE.—The demonstration projects developed 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 approaches 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 submit to the 
I Committee on Ways and Means of the House of Representatives 
and the Committee on Finance of the Senate no later than 
December 31, 1997, a final report on the demonstration projects 
carried out under this subsection, together with any related 
data and materials which the Secretary may consider appro-
priate. The authority under this section shall terminate upon 
the transmittal of such final report. 
42 use 1382 
SEC. 202. COMMISSION ON CHILDHOOD DISABILITY. 
(a) ESTABLISHMENT OF COMMISSION.—^The Secretary of Health 
and Human Services (in this section referred to as the "Secretary") 
shall appoint a Commission on the Evaluation of Disability in 
Children (in this section referred to as the "Commission"). 
(b) APPOINTMENT OF MEMBERS.—(1) The Secretary shall appoint 
not less than 9 but not more than 15 members to the Commission, 
including— 
(A) recognized experts in the field of medicine, whose work 
involves— 
(i) the evaluation and treatment of disability in chil-
dren; 
(ii) the study of congenital, genetic, or perinatal dis-
orders in children; or 
(iii) the measurement of developmental milestones and 
developmental deficits in children; and 
(B) recognized experts in the fields o
f
—
• 
(i) psychology; 
(ii) education and rehabilitation; 
(iii) law; 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1507 
(iv) the administration of disability programs; and 
(v) social insurance (including health insurance); and 
(C) other fields of expertise that the Secretary determines 
to be appropriate. 
(2) Members shall be appointed by January 1, 1995, without 
regard to the provisions of title 5, United States Code, governing 
appointments to competitive service. 
(3) Members appointed under this subsection shall serve for 
a term equivalent to the duration of the Commission. 
(4) The Secretary shall designate a member of the Commission 
to serve as Chair of the Commission for a term equivalent to 
the duration of the Commission. 
(c) ADMINISTRATIVE PROVISIONS.—(1) Service as a member of 
the Commission by an individual who is not otherwise a Federal 
employee shall not be considered service in an appointive or elective 
position in the Federal CJovemment for the purposes of title 5, 
United States Code. 
(2) Each member of the Commission who is not a full-time 
Federal employee shall be paid compensation at a rate equal to 
the daily equivalent of the rate of basic pay in effect for Level 
IV of the Executive Schedule for each day (including travel time) 
the member attends meetings or otherwise performs the duties 
of the Commission. 
(3) While away from their homes or regular places of business 
on the business of the Commission, each member who is not a 
full-time Federal employee may be allowed travel expenses, includ-
ing per diem in lieu of subsistence, as authorized by section 5703 
of title 5, United States Code, for persons employed intermittently 
in the Crovernment service. 
(d) ASSISTANCE TO COMMISSION.—The Commission may engage 
individuals skilled in medical and other aspects of childhood disabil-
ity to provide such technical assistance as may be necessary to 
carry out the functions of the Commission. The Secretary shall 
make available to the Commission such secretarial, clerical, and 
other assistance as the Commission may require to carry out the 
functions of the Commission, 
(e) STUDY BY THE COMMISSION.—(1) The Commission shall con-
duct a study, in consultation with the National Academy of Sciences, 
of the effects of the definition of "disability" under title XVI of 
the Social Security Act (42 U.S.C. 1382 et seq.) in effect on the 
date of enactment of this Act, as such definition applies to determin-
ing whether a child under the age of 18 is eligible to receive 
benefits under such title, the appropriateness of such definition, 
and the advantages and disadvantages of using any alternative 
definition of disability in determining whether a child under age 
18 is eligible to receive benefits under such title. 
(2) The study described in paragraph (1) shall include issues 
of— 
(A) whether the need by families for assistance in meeting 
high costs of medical care for children with serious physical 
or mental impairments, whether or not they are eligible for 
disability benefits under title XVI of the Social Security Act, 
might appropriately be met through expansion of Federal health 
assistance programs; 
(B) the feasibility of providing benefits to children through 
noncash means, including but not limited to vouchers, debit 
cards, and electronic benefit transfer systems; 
108 STAT. 1508 
PUBLIC LAW 103-296—AUG. 15, 1994 
(C) the extent to which the Social Security Administration 
can involve private organizations in an effort to increase the 
provision of social services, education, and vocational instruc-
tion with the aim of promoting independence and the ability 
to engage in substantial gainful activity; 
(D) alternative ways and providing retroactive supple-
mental security income benefits to disabled children, including 
the desirability and feasibility of conserving some portion of 
such benefits to promote the long-term well-being of such chil-
dren; 
(E) the desirability and methods of increasing the extent 
to which benefits are used in the effort to assist disabled 
children in achieving independence and engaging in substantial 
gainful activity; 
(F) the effects of the supplemental security income program 
on disabled children and their families; and 
(G) such other issues that the Secretary determines to 
be appropriate. 
(D REPORT.—Not later than November 30, 1995, the Commis-
sion shall prepare a report and submit such report to the Committee 
on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate which shall summarize the 
results of the study described in subsection (e) and include any 
recommendations that the Commission determines to be appro-
priate. 
SEC. 203. REGULATIONS REGARDING COMPLETION OF PLANS FOR 
ACHIEVING SELF-SUPPORT. 
(a) IN GENERAL.—Section 1633 of the Social Security Act (42 
U.S.C. 1383b) is amended by adding at the end the following: 
"(d) The Secretary shall establish by regulation criteria for 
time limits and other criteria related to individuals' plans for achiev-
ing self-support, that take into account— 
"(1) the length of time that the individual will need to 
achieve the individual's employment goal (within such reason-
able period as the Secretary may establish); and 
' (2) other factors determined by the Secretary to be appro-
priate.". 
42 use 1383b 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
'^o*® 
shall take effect on January 1, 1995. 
SEC. 204. SSI EUGIBILITY FOR STUDENTS TEMPORARILY ABROAD. 
(a) IN GENERAL.—Section 1611(f) of the Social Security Act 
(42 U.S.C. 1382(f)) is amended— 
(1) by inserting "(1)" after "(f)"; and 
(2) by adding after and below the end the following: 
"(2) For a period of not more than 1 year, the first sentence 
of paragraph (1) shall not apply to any individual who— 
"(A) was eligible to receive a benefit under this title for 
the month immediately preceding the first month during all 
\ 
of which the individual was outside the United States; and 
"(B) demonstrates to the satisfaction of the Secretary that 
the absence of the individual from the United States will be— 
"(i) for not more than 1 year; and 
"(ii) for the purpose of conducting studies as part of 
an educational program that is— 
"(I) designed to substantially enhance the ability 
of the individual to engage in gainful emplojrment; 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1509 
"(ID sponsored by a school, college, or university 
in the United States; and 
"(III) not available to the individual in the United 
States.", 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
42 use 1382 
shall take effect on January 1, 1995. 
note. 
SEC. 205. DISREGARD OF COST-OF-LIVING INCREASES FOR CONTIN-
UED ELIGIBILITY FOR WORK INCENTIVES. 
(a) IN GENERAL.—Section 1619(b)(1)(B) of the Social Security 
Act (42 U.S.C. 1382h(b)(l)(B)) is amended by inserting "and 
increases pursuant to section 215(i) in the level of monthly insur-
ance benefits to which the individual is entitled under title II 
that occur while such individual is considered to be receiving supple-
mental security income benefits by reason of this subsection" after 
"earnings". 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 42 use I382h 
shall apply to eligibility determinations for months after December 
1994. 
note. 
SEC. 206. EXPANSION OF THE AUTHORITY OF THE SOCIAL SECURITY 
ADMINISTRATION TO PREVENT, DETECT, AND TERMINATE 
FRAUDULENT CLAIMS FOR OASDI AND SSI BENEFITS. 
(a) PREVENTION OF FRAUD BY TRANSLATORS OF FOREIGN LAN-
GUAGES.— 
(1) OASDI PROGRAMS.—Section 205(c) of the Social Security 
Act (42 U.S.C. 405(c)) is amended— 
(A) by redesignating paragraph (8) as paragraph (9); 
and 
(B) by inserting after paragraph (7) the following: 
"(8) A translation into English by a third party of a statement 
made in a foreign language by an applicant for or beneficiary 
of monthly insurance benefits under this title shall not be regarded 
as reliable for any purpose under this title unless the third party, 
under penalty of perjury— 
"(A) certifies that the translation is accurate; and 
"(B) discloses the nature and scope of the relationship 
between the third party and the applicant or recipient, as 
the case may be.". 
(2) SSI PROGRAM.—Section 1631(e) of such Act (42 U.S.C. 
1383(e)) is amended by inserting after paragraph (3) the follow-
ing: 
"(4) A translation into English by a third party of a statement 
made in a foreign language by an applicant for or recipient of 
benefits under this title shall not be regarded as reliable for any 
purpose under this title unless the third party, under penalty 
of perjury— 
"(A) certifies that the translation is accurate; and 
"(B) discloses the nature and scope of the relationship 
between the third party and the applicant or recipient, as 
the case may be.". 
(3) EFFECTIVE DATE.—The amendments made by this sub- 42 use 405 
section shall apply to translations made on or after October "°*®-
1, 1994. 
(b) CIVIL MONETARY PENALTIES, ASSESSMENTS, AND EXCLUSIONS 
FOR TITLES II AND XVI.— 
108 STAT. 1510 
PUBLIC LAW 103-296—AUG. 15, 1994 
(1) IN GENERAL.—^Title XI of the Social Security Act (42 
U.S.C. 1301 et seq.) is amended by inserting after section 
1128B the following: 
42 use 1320a-8. 
"SEC. 1129. CIVIL MONETARY PENALTIES AND ASSESSMENTS FOR 
TITLES HAND XVI. 
"(a)(1) Any person (including an organization, agency, or other 
entity) who makes, or causes to be made, a statement or representa-
tion of a material fact for use in determining any initial or continu-
ing right to or the amount of— 
"(A) monthly insurance benefits under title II, or 
"(B) benefits or payments under title XVI, 
that the person knows or should know is false or misleading or 
knows or should know omits a material fact or makes such a 
statement with knowing disregard for the truth shall be subject 
to, in addition to any other penalties that may be prescribed by 
law, a civil money penalty of not more than $5,000 for each such 
statement or representation. Such person also shall be subject to 
an assessment, in lieu of damages sustained by the United States 
because of such statement or representation, of not more than 
twice the amount of benefits or pajnnents paid as a result of 
such a statement or representation. In addition, the Secretary may 
make a determination in the same proceeding to exclude, as pro-
vided in section 1128, such a person who is a medical provider 
or physician from participation in the programs under title XVIII 
and to direct the appropriate State agency to exclude the person 
from participation in any State health care program permanently 
or for such period as the Secretary determines. 
"(2) For purposes of this section, a material fact is one which 
the Secretary may consider in evaluating whether an applicant 
is entitled to benefits under title II or eligible for benefits or 
payments under title XVI. 
"(b)(1) The Secretary may initiate a proceeding to determine 
whether to impose a civil money penalty or assessment, or whether 
to recommend exclusion under subsection (a) only as authorized 
by the Attorney General pursuant to procedures agreed upon by 
the Secretary and the Attorney General. The Secretary may not 
initiate an action under this section with respect to any violation 
described in subsection (a) later than 6 years after the date the 
violation was committed. The Secretary may initiate an action 
under this section by serving notice of the action in any manner 
authorized by Rule 4 of the Federal Rules of Civil Procedure. 
"(2) The Secretary shall not make a determination adverse 
to any person under this section until the person has been given 
written notice and an opportunity for the determination to be made 
on the record after a hearing at which the person is entitled to 
be represented by counsel, to present witnesses, and to cross-exam-
ine witnesses against the person. 
"(3) In a proceeding under this section which— 
"(A) is against a person who has been convicted (whether 
upon a verdict after trial or upon a plea of guilty or nolo 
contendere) of a Federal or State crime charging fraud or 
false statements; and 
"(B) involves the same transaction as in the criminal action; 
the person is estopped from denying the essential elements of 
the criminal offense. 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1511 
"(4) The official conducting a hearing under this section may 
sanction a person, including any party or attorney, for failing to 
comply with an order or procedure, for failing to defend an action, 
or for such other misconduct as would interfere with the speedy, 
orderly, or fair conduct of the hearing. Such sanction shall reason-
ably relate to the severity and nature of the failure or misconduct. 
Such sanction may include— 
"(A) in the case of refusal to provide or permit discovery, 
drawing negative factual inference or treating such refusal 
as an admission by deeming the matter, or certain facts, to 
be established; 
"(B) prohibiting a party from introducing certain evidence 
or otherwise supporting a particular claim or defense; 
"(C) striking pleadings, in whole or in part; 
"(D) staying the proceedings; 
"(E) dismissal of the action; 
"(F) entering a default judgment; 
"(G) ordering the party or attorney to pay attorneys' fees 
and other costs caused by the failure or misconduct; and 
"(H) refusing to consider any motion or other action which 
is not filed in a timely manner. 
"(c) In determining pursuant to subsection (a) the amount or 
scope of £iny penalty or assessment, or whether to recommend 
an exclusion, the Secretary shall take into account— 
"(1) the nature of the statements and representations 
referred to in subsection (a) and the circumstances under which 
they occurred; 
"(2) the degree of culpability, history of prior offenses, 
and financial condition of the person committing the offense; 
and 
"(3) such other matters as justice may require. 
"(d)(1) Any person adversely affected by a determination of 
the Secretary under this section may obtain a review of such deter-
mination in the United States Court of Appeals for the circuit 
in which the person resides, or in which the statement or represen-
tation referred to in subsection (a) was made, by filing in such 
court (within 60 days following the date the person is notified 
of the Secretary's determination) a written petition requesting that 
the determination be modified or set aside. A copy of the petition 
shall be forthwith transmitted by the clerk of the court to the 
Secretary, and thereupon the Secretary shall file in the court the 
record in the proceeding as provided in section 2112 of title 28, 
United States Code. Upon such filing, the court shall have jurisdic-
tion of the proceeding jmd of the question determined therein, 
and shall have the power to make and enter upon the pleadings, 
testimony, and proceedings set forth in such record a decree affirm-
ing, modifying, remanding for further consideration, or setting aside, 
in whole or in part, the determination of the Secretary and enforcing 
the same to the extent that such order is affirmed or modified. 
No objection that has not been urged before the Secretary shall 
be considered by the court, unless the failure or neglect to urge 
such objection shall be excused because of extraordinary cir-
cumstances. 
"(2) The findings of the Secretary with respect to questions 
of fact, if supported by substantial evidence on the record considered 
as a whole, shall be conclusive in the review described in paragraph 
(1). If any party shall apply to the court for leave to adduce addi-
108 STAT. 1512 
PUBLIC LAW 103-296—AUG. 15, 1994 
tional evidence and shall show to the satisfaction of the court 
that such additional evidence is material and that there were 
reasonable grounds for the failure to adduce such evidence in the 
hearing before the Secretary, the court may order such additional 
evidence to be taken before the Secretary and to be made a part 
of the record. The Secretary may modify such findings as to the 
facts, or make new findings, by reason of additional evidence so 
taken and filed, and the Secretary shall file with the court such 
modified or new findings, which findings with respect to questions 
of fact, if supported by substantial evidence on the record considered 
as a whole shall be conclusive, and the Secretary's recommenda-
tions, if any, for the modification or setting aside of the Secretary's 
original order. 
"(3) Upon the filing of the record and the Secretar^s original 
or modified order with the court, the jurisdiction of the court shall 
be exclusive and its judgment and decree shall be final, except 
that the same shall be subject to review by the Supreme Court 
of the United States, as provided in section 1254 of title 28, United 
States Code. 
"(e)(1) Civil money penalties and assessments imposed under 
this section may be compromised by the Secretary and may be 
recovered— 
"(A) in a civil action in the name of the United States 
brought in United States district court for the district where 
the statement or representation referred to in subsection (a) 
was made, or where the person resides, as determined by 
the Secretary; 
"(B) by means of reduction in tax refunds to which the 
person is entitled, based on notice to the Secretary of the 
r 
Treasury as permitted under section 3720A of title 31, United 
States Code; 
"(C)(i) by decrease of any payment of monthly insurance 
benefits under title II, notwithstanding section 207, or 
"(ii) by decrease of any payment under title XVI for which 
the person is eligible, notwithstanding section 207, as made 
applicable to title XVI by reason of section 1631(d)(1); 
"(D) by authorities provided under the Debt Collection Act 
of 1982, as amended, to the extent applicable to debts arising 
under the Social Security Act; 
"(E) by deduction of the amount of such penalty or assess-
ment, when finally determined, or the amount agreed upon 
in compromise, from any sum then or later owing by the United 
States to the person against whom the penalty or assessment 
has been assessed; or 
"(F) by any combination of the foregoing. 
"(2) Amounts recovered under this section shall be recovered 
by the Secretary and shall be disposed of as follows: 
"(A) In the case of amounts recovered arising out of a 
determination relating to title II, the amounts shall be trans-
ferred to the Managing Trustee of the Federal Old-Age and 
Survivors Insurance Trust Fund or the Federal Disability Insur-
ance Trust Fund, as determined appropriate by the Secretary, 
and such amounts shall be deposited by the Managing Trustee 
into such Trust Fund. 
"(B) In the case of amounts recovered arising out of a 
determination relating to title XVI, the amounts shall be depos-
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1513 
ited by the Secretary into the general fund of the Treasury 
as miscellaneous receipts. 
"(f) A determination pursuant to subsection (a) by the Secretary 
to impose a penalty or assessment, or to recommend an exclusion 
shall be final upon the expiration of the 60-day period referred 
to in subsection (d). Matters that were raised or that could have 
been raised in a hearing before the Secretary or in an appeal 
pursuant to subsection (d) may not be raised as a defense to 
a civil action by the United States to collect a penalty or assessment 
imposed under this section. 
"(g) Whenever the Secretary's determination to impose a pen-
alty or assessment under this section with respect to a medical 
provider or physician becomes final, the provisions of section 
1128A(h) shall apply. 
"(h) Whenever the Secretary has reason to believe that any 
person has engaged, is engaging, or is about to engage in any 
activity which makes the person subject to a civil monetary penalty 
under this section, the Secretary may bring an action in an appro-
priate district court of the United States (or, if applicable, a United 
States court of any territory) to enjoin such activity, or to enjoin 
the person from concealing, removing, encumbering, or disposing 
of assets which may be required in order to pay a civil monetary 
penalty and assessment if any such penalty were to be imposed 
or to seek other appropriate relief. 
"(i)(l) The provisions of subsections (d) and (e) of section 205 
shall apply with respect to this section to the same extent as 
they are applicable with respect to title IL The Secretary may 
delegate the authority granted by section 205(d) (as made applicable 
to this section) to the Inspector General for purposes of any inves-
tigation under this section. 
"(2) The Secretary may delegate authority granted under this 
section to the Inspector General. 
"(j) For purposes of this section, the term 'State agency' shall 
have the same meaning as in section 1128A(i)(l). 
"(k) A principal is liable for penalties and assessments under 
subsection (a), and for an exclusion under section 1128, for the 
actions of the principal's agent acting within the scope of the 
agency.". 
(2) CONFORMING AMENDMENTS.—Section 1128 of such Act 
(42 U.S.C. 1320a-7) is amended— 
(A) in subsection (b)(7), by striking "or section 1128B" 
and inserting ", 1128B, or 1129"; 
(B) in subsection (b)(8)(B)(ii), by inserting "or 1129" 
after "section 1128A"; and 
(C) in subsection (f)(3), by inserting ", 1129," after 
"sections 1128A". 
(3) EFFECTIVE DATE.—The amendments made by this sub- 42 use i320a-7 
section shall apply to conduct occurring on or after October ^°^^-
1, 1994. 
(c) SSI FRAUD CONSIDERED A FELONY.— 
(1) IN GENERAL.—Section 1632(a) of the Social Security 
Act (42 U.S.C. 1383a(a)) is amended by striking "shall" the 
1st place such term appears and all that follows and inserting 
"shall be fined under title 18, United States Code, imprisoned 
not more than 5 years, or both.". 
(2) CONFORMING AMENDMENT.—Section 1632(b) of such Act 
(42 U.S.C. 1383a(b)) is amended to read as follows: 
note. 
108 STAT. 1514 
PUBLIC LAW 103-296—AUG. 15, 1994 
"(b)(1) If a person or entity violates subsection (a) in the person's 
or entity's role as, or in applying to become, a representative payee 
under section 1631(a)(2) on behalf of another individual (other 
than the person's eligible spouse), and the violation includes a 
willful misuse of funds by the person or entity, the court may 
also require that full or partial restitution of mnds be made to 
such other individual. 
"(2) Any person or entity convicted of a violation of subsection 
(a) of this section or of section 208 may not be certified as a 
representative payee under section 1631(a)(2).". 
^2^80 1383a 
(3) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to conduct occurring on or after October 
1, 1994. 
(d) 
AUTHORITY TO REDETERMINE ELIGIBILITY IF FRAUD IS 
INVOLVED, AND TO TERMINATE BENEFITS IF THERE IS INSUFFICIENT 
RELIABLE EVIDENCE.— 
(1) OASDI PROGRAMS.—Section 205 of the Social Security 
Act (42 U.S.C. 405) is amended by adding at the end the 
following: 
"(u)(l)(A) The Secretary shsJl immediately redetermine the 
entitlement of individuals to monthly insurance benefits under this 
title if there is reason to believe that fraud or similar fault was 
involved in the application of the individual for such benefits, 
unless a United States attorney, or equivalent State prosecutor, 
with jurisdiction over potential or actual related criminal cases, 
certifies, in writing, that there is a substantial risk that such 
action by the Secretary with regard to beneficiaries in a particular 
investigation would jeopardize the criminal prosecution of a person 
involved in a suspected fraud. 
"(B) When redetermining the entitlement, or making an initial 
determination of entitlement, of an individual under this title, 
the Secretary shall disregard any evidence if there is reason to 
believe that fraud or similar fault was involved in the providing 
of such evidence. 
"(2) For purposes of paragraph (1), similar fault is involved 
with respect to a determination if— 
"(A) an incorrect or incomplete statement that is material 
to the determination is knowingly made; or 
"(B) information that is material to the determination is 
knowingly concealed. 
"(3) If, after redetermining pursuant to this subsection the 
entitlement of an individual to monthly insurance benefits, the 
Secretary determines that there is insufficient evidence to support 
such entitlement, the Secretary may terminate such entitlement 
and may treat benefits paid on the basis of such insufficient evi-
dence as overpayments.". 
(2) SSI PROGRAM.—Section 1631(e) of such Act (42 U.S.C. 
1383(e)) is amended by adding at the end the following: 
"(6)(A)(i) The Secretary shall immediately redetermine the eligi-
bility of an individual for benefits under this title if there is reason 
to believe that fraud or similar fault was involved in the application 
of the individual for such benefits, unless a United States attorney, 
or equivalent State prosecutor, with jurisdiction over potential or 
actual related criminal cases, certifies, in writing, that there is 
a substantial risk that such action by the Secretary with regard 
to recipients in a particular investigation would jeopardize the 
criminal prosecution of a person involved in a suspected fraud. 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1515 
"(ii) When redetermining the eligibility, or making an initial 
determination of eligibility, of an individual for benefits under this 
title, the Secretary shall disregard any evidence if there is reason 
to believe that fraud or similar fault was involved in the providing 
of such evidence. 
"(B) For purposes of subparagraph (A), similar fault is involved 
with respect to a determination if— 
"(i) an incorrect or incomplete statement that is material 
to the determination is knowingly made; or 
"(ii) information that is material to the determination is 
knowingly concealed. 
"(C) If, after redetermining the eligibility of an individual for 
benefits under this title, the SecretEiry determines that there is 
insufficient evidence to support such eligibility, the Secretary may 
terminate such eligibility and may treat benefits paid on the basis 
of such insufficient evidence as overpayments.". 
(3) EFFECTIVE DATE.—The amendments made by this sub- 42 use 405 
section shall take effect on October 1, 1994, and shall apply "°^® 
to determinations made before, on, or after such date. 
(e) AVAILABILITY OF RECIPIENT IDENTIFYING INFORMATION FROM 
THE INSPECTOR GENERAL.— 
(1) IN GENERAL.—Section 1129 of the Social Security Act 
(added by subsection (b) of this section) is amended by adding 
at the end the following: 
"(1) As soon as the Inspector General, Department of Health 
and Human Services, has reason to believe that fraud was involved 
in the application of an individual for monthly insurance benefits 
under title II or for benefits under title XVI, the Inspector General 
shall make available to the Secretary information identifying the 
individual, unless a United States attorney, or equivalent State 
prosecutor, with jurisdiction over potential or actual related crimi-
nal cases, certifies, in writing, that there is a substantial risk 
that making the information so available in a particular investiga-
tion or redetermining the eligibility of the individual for such bene-
fits would jeopardize the criminal prosecution of any person who 
is a subject of the investigation from which the information is 
derived.". 
(2) EFFECTIVE DATE.—The amendment made by paragraph 42 use i320a-8 
(1) shall take effect on October 1,1994. 
"°*^-
(f) AUTHORITY TO USE AVAILABLE PREADMISSION IMMIGRANT 
AND REFUGEE MEDICAL INFORMATION.— 
(1) IN GENERAL.—Section 1631(e) of the Social Security 
Act (42 U.S.C. 1383(e)) as amended by subsection (d)(2) of 
this section, is amended by adding at the end the following: 
"(7)(A) The Secretary shall request the Immigration and Natu-
ralization Service or the Centers for Disease Control to provide 
the Secretary with whatever medical information, identification 
information, and employment history either such entity has with 
respect to any alien who has applied for benefits under title XVI 
to the extent that the information is relevant to any determination 
relating to eligibility for such benefits under title XVI. 
"(B) Subparagraph (A) shall not be construed to prevent the 
Secretary from adjudicating the case before receiving such informa-
tion.". 
(2) EFFECTIVE DATE.—The amendment made by paragraph 
42 use 1383 
(1) shall take effect on October 1,1994. 
"^^^ 
108 STAT. 1516 
PUBLIC LAW 103-296—AUG. 15, 1994 
42 use 405 
(g) ANNUAL REPORTS ON REVIEWS OF O A S D I AND SSI CASES.— 
^°^^- 
The Secretary of Health and Human Services shall annually submit 
to the Committee on Ways and Means of the House of Representa-
tives and the Committee on Finance of the Senate a report on 
the extent to which the Secretary has exercised his authority to 
review cases of entitlement to monthly insurance benefits under 
title II of the Social Security Act and supplemental security income 
cases under title XVI of such Act, and the extent to which the 
cases reviewed were those that involved a high likelihood or prob-
ability of fraud. 
42 use 1382 
SEC. 207. DISABILITY REVIEW REQUIRED FOR SSI RECIPIENTS WHO 
note. 
ARE 18 YEARS OF AGE. 
(a) DISABILITY REVIEW REQUIREMENT.— 
(1) IN GENERAL.—^The applicable State agency or the Sec-
retary of Health and Human Services (as may be appropriate) 
shall redetermine the eligibility of a qualified individual for 
supplemental security income benefits under title XVI of the 
Social Security Act by reason of disability, by applying the 
criteria used in determining eligibility for such benefits of 
applicants who have attained 18 years of age. 
(2) WHEN CONDUCTED.—^The redetermination required by 
paragraph (1) with respect to a qualified individual shall be 
conducted during the 1-year period that begins on the date 
the qualified individual attains 18 years of age. 
(3) MINIMUM NUMBER OF REVIEWS.—The Secretary shall 
conduct redeterminations under paragraph (1) with respect to 
not less than Va of qualified individuals in each of fiscal years 
1996, 1997, and 1998. 
(4) QUALIFIED INDIVIDUAL DEFINED.—-AS used in this para-
' 
graph, the term "qualified individual" means a recipient of 
supplemental security income benefits under title XVI of the 
Social Security Act by reason of disability who attains 18 years 
of age in or after the 9th month after the month in which 
this Act is enacted. 
(5) SUBSTITUTE FOR A CONTINUING DISABILITY REVIEW.— 
A redetermination under paragraph (1) of this subsection shall 
be considered a substitute for a review required under section 
. • 1614(a)(3)(G) of the Social Security Act. 
(6) SUNSET.—Paragraph (1) shall have no force or effect 
after October 1, 1998. 
(b) REPORT TO THE CONGRESS.—Not later than October 1, 1998, 
the Secretary of Health and Human Services shall submit to the 
Committee on Ways and Means of the House of Representatives 
and the Committee on Finance of the Senate a report on the 
activities conducted under subsection (a). 
42 u s e 1382 
SEC. 208. CONTINUING DISABILITY REVIEWS. 
^°^' 
(a) TEMPORARY ANNUAL MINIMUM NUMBER OF REVIEWS.—^Dur-
ing each year of the 3-year period that begins on October 1, 1995, 
the Secretary of Health and Human Services shall apply section 
221(i) of the Social Security Act in making disability determinations 
under title XVI of such Act with respect to at least 100,000 recipi-
ents of supplemental security income benefits under such title, 
(b) REPORT TO THE CONGRESS.—Not later than October 1, 1998, 
the Secretary of Health and Human Services shall submit to the 
Committee on Ways and Means of the House of Representatives 
note. 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1517 
and the Committee on Finance of the Senate a report on the 
activities conducted under subsection (a). 
SEC. 209. EXEMPTION FROM ADJUSTMENT IN PASS-ALONG REQUIRE-
MENTS. 
(a) IN GENERAL.—Section 1618(b) of the Social Security Act 
(42 U.S.C. 1382g(b)) is amended— 
(1) by inserting "(1)" after "(b)"; and 
(2) by adding at the end the following: 
"(2) For purposes of determining under paragraph (1) whether 
a State's expenditures for supplementary payments in the 12-month 
period beginning on the effective date of any increase in the level 
of supplemental security income benefits are not less than the 
State's expenditures for such payments in the preceding 12-month 
period, the Secretary, in computing the State's expenditures, shall 
disregard, pursuant to a 1-time election of the State, all expendi-
tures by the State for retroactive supplementary payments that 
are required to be made in connection with the retroactive supple-
mental security income benefits referred to in section 5041 of the 
Omnibus Budget Reconciliation Act of 1990.". 
(b) APPLICABILITY.—^The amendments made by subsection (a) 42 use I382g 
shall apply with respect to increases in the level of supplemental 
security income benefits under title XVI of the Social Security 
Act whether occurring before, on, or after the date of the enactment 
of this Act. 
TITLE III—MISCELLANEOUS PROGRAM 
IMPROVEMENTS 
SEC. 301. ISSUANCE OF PHYSICAL DOCUMENTS IN THE FORM OF 
BONDS, NOTES, OR CERTIFICATES TO THE SOCIAL SECU-
RITY TRUST FIWDS. 
(a) REQUIREMENT THAT OBLIGATIONS ISSUED TO THE O A S D I 
TRUST FUNDS B E EVIDENCED BY PAPER INSTRUMENTS IN THE FORM 
OF BONDS, NOTES, OR CERTIFICATES OF INDEBTEDNESS SETTING 
FORTH THEIR TERMS.—Section 201(d) of the Social Security Act 
(42 U.S.C. 401(d)) is amended by inserting after the fifth sentence 
the following new sentence: "Each obligation issued for purchase 
by the Trust Funds under this subsection shall be evidenced by 
a paper instrument in the form of a bond, note, or certificate 
of indebtedness issued by the Secretary of the Treasury setting 
forth the principal amount, date of maturity, and interest rate 
of the obligation, and stating on its face that the obligation shall 
be incontestable in the hands of the Trust Fund to which it is 
issued, that the obligation is supported by the full faith and credit 
of the United States, and that the United States is pledged to 
the payment of the obligation with respect to both principal and 
interest.". 
(b) PAYMENT TO THE OASDI TRUST FUNDS FROM THE GENERAL 
FUND OF THE TREASURY OF INTEREST ON OBLIGATIONS, AND OF 
PROCEEDS FROM THE SALE OR REDEMPTION OF OBLIGATIONS, 
REQUIRED TO B E IN THE FORM OF CHECKS.—Section 201(f) of such 
Act (42 U.S.C. 401(f)) is amended by adding at the end the following 
new sentence: "Payment from the general fund of the Treasury 
to either of the Trust Funds of any such interest or proceeds 
79-194 O—95—26 : QL 3 Part 2 
108 STAT. 1518 
PUBLIC LAW 103-296—AUG. 15, 1994 
shall be in the form of paper checks drawn on such general fund 
to the order of such Trust Fund.". 
42 use 401 
(c) EFFECTIVE DATE.— 
'^°*^- 
(1) IN GENERAL.—^The amendments made by this section 
shall apply with respect to obligations issued, and payments 
made, after 60 days after the date of the enactment of this 
Act. 
(2) TREATMENT OF OUTSTANDING OBLIGATIONS.—^Not later 
than 60 days after the date of the enactment of this Act, 
the Secretary of the Treasury shall issue to the Federal Old-
Age and Survivors Insurance Trust Fund or the Federal Disabil-
ity Insurance Trust Fund, as applicable, a paper instrument, 
in the form of a bond, note, or certificate of indebtedness, 
for each obligation which has been issued to the Trust Fund 
under section 201(d) of the Social Security Act and which 
is outstanding as of such date. Each such document shall set 
forth the principal amount, date of maturity, and interest rate 
of the obligation, and shall state on its face that the obligation 
shall be incontestable in the hands of the Trust Fund to which 
it was issued, that the obligation is supported by the full 
faith and credit of the United States, and that the United 
States is pledged to the payment of the obligation with respect 
to both principal and interest. 
42 use 902 
SEC. 302. GAG STUDY REGARDING TELEPHONE ACCESS TO LOCAL 
note. 
OFFICES OF THE SOCIAL SECURITY ADMINISTRATION. 
(a) STUDY.—^The Comptroller General of the United States shall 
conduct a study of telephone access to local offices of the Social 
Security Administration. 
(b) MATTERS TO BE STUDIED.—In conducting the study under 
this section, the Comptroller General shall make an independent 
assessment of the Social Security Administration's use of innovative 
technology (including attendant call and voice mail) to increase 
public telephone access to local offices of the Administration. Such 
study shall include— 
(1) an assessment of the aggregate impact of such tech-
nology on public access to the local offices, and 
(2) a separate assessment of the impact of such technology 
on public access to those local offices to which access was 
restricted on October 1, 1989. 
(c) REPORT.—Not later than January 31, 1996, the Comptroller 
General shall submit a report on the results of the study conducted 
pursuant to this section to the Committee on Ways and Means 
of the House of Representatives and the Committee on Finance 
of the Senate. 
SEC. 303. EXPANSION OF STATE OPTION TO EXCLUDE SERVICE OF 
ELECTION OFFICIALS OR ELECTION WORKERS FROM COV-
ERAGE. 
(a) LIMITATION ON MANDATORY COVERAGE OF STATE ELECTION 
OFFICIALS AND ELECTION WORKERS WITHOUT STATE RETIREMENT 
SYSTEM.— 
(1) 
AMENDMENT 
TO 
SOCIAL 
SECURITY 
ACT.—Section 
210(a)(7)(F)(iv) 
of 
the 
Social 
Security 
Act 
(42 
U.S.C. 
410(a)(7)(F)(iv)) (as amended by section 11332(a) of the Omni-
bus Budget Reconciliation Act of 1990) is amended by striking 
"$100" and inserting "$1,000 with respect to service performed 
during any calendar year commencing on or after JginuEiry 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1519 
1, 1995, ending on or before December 31, 1999, and the 
adjusted amount determined under section 218(c)(8)(B) for any 
calendar year commencing on or after January 1, 2000, with 
respect to service performed during such calendar year". 
(2) AMENDMENT TO FICA.—Section 3121(b)(7)(F)(iv) of the 
Internal Revenue Code of 1986 (as amended by section 11332(b) 
of the Omnibus Budget Reconciliation Act of 1990) is amended 
by striking "$100" and inserting "$1,000 with respect to service 
performed during any calendar year commencing on or after 
January 1, 1995, ending on or before December 31, 1999, and 
the adjusted amount determined under section 218(c)(8)(B) of 
the Social Security Act for any calendar year commencing on 
or after January 1, 2000, with respect to service performed 
during such calendar year". 
(b) CONFORMING AMENDMENTS RELATING TO MEDICARE QUALI-
FIED GOVERNMENT EMPLOYMENT.— 
(1) 
AMENDMENT 
TO 
SOCIAL 
SECURITY 
ACT.—Section 
210(p)(2)(E) of the Social Security Act (42 U.S.C. 410(p)(2)(E)) 
is amended by striking "$100" and inserting "$1,000 with 
respect to service performed during any calendar year commenc-
ing on or after January 1, 1995, ending on or before December 
31, 1999, and the adjusted amount determined under section 
218(c)(8)(B) for any calendar year commencing on or after Janu-
ary 1, 2000, with respect to service performed during such 
calendar year". 
(2) AMENDMENT TO FICA.—Section 3121(u)(2)(B)(ii)(V) of 
the Internal Revenue Code of 1986 is amended by striking 
"$100" and inserting "$1,000 with respect to service performed 
during any calendar year commencing on or after January 
1, 1995, ending on or before December 31, 1999, and the 
adjusted amount determined under section 218(c)(8)(B) of the 
Social Security Act for any calendar year commencing on or 
after January 1, 2000, with respect to service performed during 
such calendar year". 
(c) AUTHORITY FOR STATES TO MODIFY COVERAGE AGREEMENTS 
WITH RESPECT TO ELECTION OFFICIALS AND ELECTION WORKERS.— 
Section 218(c)(8) of the Social Security Act (42 U.S.C. 418(c)(8)) 
is amended— 
(1) by striking "on or after January 1, 1968," and inserting 
"at any time"; 
(2) by striking "$100" and inserting "$1,000 with respect 
to service performed during any calendar year commencing 
on or after January 1, 1995, ending on or before December 
31, 1999, and the adjusted amount determined under subpara-
graph (B) for any calendar year commencing on or after January 
1, 2000, with respect to service performed during such CEdendar 
year"; and 
(3) by striking the last sentence and inserting the following 
new sentence: "Any modification of an agreement pursuant 
to this paragraph shall be effective with respect to services 
performed in and after the calendar year in which the modifica-
tion is mailed or delivered by other means to the Secretary.". 
(d) INDEXATION OF EXEMPT AMOUNT.—Section 218(c)(8) of such 
Act (as amended by subsection (c)) is further amended— 
(1) by inserting "(A)" after "(8)"; and 
(2) by adding at the end the following new subparagraph: 
note. 
108 STAT. 1520 
PUBLIC LAW 103-296—AUG. 15, 1994 
"(B) For each year after 1999, the Secretary shall adjust the 
amount referred to in subparagraph (A) at the same time and 
in the same manner as is provided under section 215(a)(l)(B)(ii) 
with respect to the amounts referred to in section 215(a)(l)(B)(i), 
except that— 
"(i) for purposes of this subparagraph, 1997 shall be sub-
stituted 
for 
the 
calendar 
year 
referred 
to 
in 
section 
215(a)(l)(B)(ii)(II), and 
"(ii) such amount as so adjusted, if not a multiple of $100, 
shall be rounded to the next higher multiple of $100 where 
such amount is a multiple of $50 and to the nearest multiple 
of $100 in any other case. 
Federal 
The Secretary shall determine and publish in the Federal Register 
publication 
®^^^ adjusted amount determined under this subparagraph not 
later than November 1 preceding the year for which the adjustment 
is made.". 
^2^80 410 
(e) EFFECTIVE DATE.—^The amendments made by subsections 
(a), (b), and (c) shall apply with respect to service performed on 
or after January 1, 1995. 
SEC. 304. USE OF SOCIAL SECURITY NUMBERS BY STATES AND LOCAL 
GOVERNMENTS AND FEDERAL DISTRICT COURTS FOR 
JURY SELECTION PURPOSES. 
(a) IN GENERAL.—Section 205(c)(2) of the Social Security Act 
(42 U.S.C. 405(c)(2)) is amended— 
(1) in subparagraph (B)(i), by striking "(E)" in the matter 
preceding subclause (I) and inserting "(F)"; 
(2) by redesignating subparagraphs (E) and (F) as subpara-
graphs (F) and (G), respectively; and 
(3) by inserting after subparagraph (D) the following: 
"(E)(i) It is the policy of the United States that— 
"(I) any State (or any political subdivision of a State) may 
utilize the social security account numbers issued by the Sec-
retary for the additional purposes described in clause (ii) if 
such numbers have been collected and are otherwise utilized 
by such State (or political subdivision) in accordance with 
applicable law, and 
"(II) any district court of the United States may use, for 
such additional purposes, any such social security account num-
bers which have been so collected and are so utilized by any 
State. 
"(ii) The additional purposes described in this clause are the 
following: 
"(I) Identifying duplicate names of individuals on master 
lists used for jury selection purposes. 
"(II) Identifying on such master lists those individuals who 
are ineligible to serve on a jury by reason of their conviction 
of a felony. 
"(iii) To the extent that any provision of Federal law enacted 
before the date of the enactment of this subparagraph is inconsistent 
with the policy set forth in clause (i), such provision shall, on 
and after that date, be null, void, and of no effect. 
"(iv) For purposes of this subparagraph, the term 'State' has 
the meaning such term has in subparagraph (D).". 
(b) CONFORMING AMENDMENT.—Section 1140(a)(2) of such Act 
(42 U.S.C. 1320b-10(a)(2)) is amended by striking "205(c)(2)(E)" 
and inserting "205(c)(2)(F)". 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1521 
(c) EFFECTIVE DATE.—The amendments made by this section 
42 use 405 
shall take effect on the date of the enactment of this Act. 
"°*^-
SEC. 305. AUTHORIZATION FOR ALL STATES TO EXTEND COVERAGE 
TO STATE AND LOCAL POLICE OFFICERS AND FIRE-
FIGHTERS UNDER EXISTING COVERAGE AGREEMENTS. 
(a) IN GENERAL.—Section 218(1) of the Social Security Act (42 
U.S.C. 418(1)) is amended— 
(1) in paragraph (1), by striking "(1)" after "(1)", and by 
striking "the State of and all that follows through "prior to 
the date of enactment of this subsection" and inserting "a 
State entered into pursuant to this section"; and 
(2) by striking paragraph (2). 
(b) CONFORMING AMENDMENT.—Section 218(d)(8)(D) of such Act 
(42 U.S.C. 418(d)(8)(D)) is amended by striking "agreements with 
the States named in" and inserting "State agreements modified 
as provided in". 
(c) EFFECTIVE DATE.—^The amendments made by this section 
42 use 418 
shall apply with respect to modifications filed by States after the ^°^^-
date of the enactment of this Act. 
SEC. 306. LIMITED EXEMPTION FOR CANADIAN MINISTERS FROM CER- 26 USC 1402 
TAIN SELF-EMPLOYMENT TAX LIABILITY. 
note. 
(a) IN GENERAL.—Notwithstanding any other provision of law, 
if— 
(1) an individual performed services described in section 
1402(c)(4) of the Internal Revenue Code of 1986 which are 
subject to tax under section 1401 of such Code, 
(2) such services were performed in Canada at a time 
when no agreement between the United States and Canada 
pursuant to section 233 of the Social Security Act was in 
effect, and 
(3) such individual was required to pay contributions on 
the earnings from such services under the social insurance 
system of Canada, 
then such individual may file a certificate under this section in 
such form and manner, and with such official, as may be prescribed 
in regulations issued under chapter 2 of such Code. Upon the 
filing of such certificate, notwithstanding any judgment which has 
been entered to the contrary, such individual shall be exempt from 
payment of such tax with respect to services described in para-
graphs (1) and (2) and from any penalties or interest for failure 
to pay such tax or to file a self-emplo5mrient tax return as required 
under section 6017 of such Code. 
(b) PERIOD FOR FILING.—^A certificate referred to in subsection 
(a) may be filed only during the 180-day period commencing with 
the date on which the regulations referred to in subsection (a) 
are issued. 
(c) TAXABLE YEARS i\FFECTED BY CERTIFICATE.—^A certificate 
referred to in subsection (a) shall be effective for taxable years 
ending after December 31., 1978, and before January 1, 1985. 
(d) RESTRICTION ON CREDITING OF EXEMPT SELF-EMPLOYMENT 
INCOME.—In any case in which an individual is exempt under 
this section from paying a t£ix imposed under section 1401 of the 
Internal Revenue Code of 1986, any income on which such tax 
would have been imposed but for such exemption shall not con-
stitute self-employment income under section 211(b) of the Social 
Security Act (42 U.S.C. 411(b)), and, if such individual's primary 
108 STAT. 1522 
PUBLIC LAW 103-296—AUG. 15, 1994 
insurance amount has been determined under section 215 of such 
Act (42 U.S.C. 415), notwithstanding section 215(f)(1) of such Act, 
the Secretary of Health and Human Services (prior to March 31, 
1995) or the Commissioner of Social Security (after March 30, 
1995) shall recompute such primary insurance amount so as to 
take into account the provisions of this subsection. The recomputa-
tion under this subsection shall be effective with respect to benefits 
for months following approval of the certificate of exemption. 
SEC. 307. EXCLUSION OF TOTALIZATION BENEFITS FROM THE 
APPLICATION OF THE WINDFALL EUMINATION PROVI-
SION. 
(a) IN GENERAL.—Section 215(a)(7) of the Social Security Act 
(42 U.S.C. 415(a)(7)) is amended— 
(1) in subparagraph (A), by striking "but excluding" and 
all that follows through "1937" and inserting "but excluding 
(I) a payment under the Railroad Retirement Act of 1974 or 
1937, and (II) a pavment by a social security system of a 
foreign country based on an agreement concluded between the 
United States and such foreign country pursuant to section 
233"; and 
(2) in subparagraph (E), by inserting after "in the case 
of an individual" the following: "whose eligibility for old-age 
or disability insurance benefits is based on an agreement con-
cluded pursuant to section 233 or an individual". 
(b) CONFORMING AMENDMENT RELATING TO BENEFITS UNDER 
1939 ACT.—Section 215(d)(3) of such Act (42 U.S.C. 415(d)(3)) is 
amended by striking "but excluding" and all that follows through 
"1937" and inserting "but excluding (I) a payment under the Rail-
road Retirement Act of 1974 or 1937, and (II) a payment by a 
social security system of a foreign country based on an agreement 
concluded between the United States and such foreign country 
pursuant to section 233". 
42 use 415 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply (notwithstanding section 215(f)(1) of the Social Security 
Act (42 U.S.C. 415(f)(1))) with respect to benefits payable for months 
after December 1994. 
SEC. 308. EXCLUSION OF MILITARY RESERVISTS FROM APPUCATION 
OF THE GOVERNMENT PENSION OFFSET AND WINDFALL 
ELIMINATION PROVISIONS. 
(a) EXCLUSION FROM GOVERNMENT PENSION OFFSET PROVI-
SIONS.—Subsections (b)(4), (c)(2), (e)(7), (f)(2), and (g)(4) of section 
202 of the Social Security Act (42 U.S.C. 402 (b)(4), (c)(2), (e)(7), 
(f)(2), and (g)(4)) are each amended— 
(1) in subparagraph (A)(ii), by striking "unless subpara-
graph (B) applies."; 
(2) in subparagraph (A), by striking "The" in the matter 
following clause (ii) and inserting "unless subparagraph (B) 
applies. The"; and 
(3) in subparagraph (B), by redesignating the existing mat-
ter as clause (ii), and by inserting before such clause (ii) (as 
so redesignated) the following: 
"(B)(i) Subparagraph (A)(i) shall not apply with respect to 
monthly periodic benefits based wholly on service as a member 
of a uniformed service (as defined in section 210(m)).". 
(b) EXCLUSION FROM WINDFALL ELIMINATION PROVISIONS.—Sec-
tion 215(a)(7)(A) of such Act (as amended by section 307(a) of 
note. 
note. 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1523 
this Act) and section 215(d)(3) of such Act (as amended by section 
307(b) of this Act) are each further amended— 
(1) by striking "and" before "(II)"; and 
(2) by striking "section 233" and inserting "section 233, 
and (III) a pajonent based wholly on service as a member 
of a uniformed service (as defined in section 210(m))". 
(c) EFFECTIVE DATE,.—The amendments made by this section 
42 use 402 
shall apply (notwithstanding section 215(f) of the Social Security 
Act) with respect to benefits payable for months after December 
1994. 
SEC. 309. REPEAL OF THE FACIUTY-OF-PAYMENT PROVISION. 
(a) REPEAL OF RULE PRECLUDING REDISTRIBUTION UNDER FAM-
ILY MAXIMUM.—Section 203(i) of the Social Security Act (42 U.S.C. 
403(i)) is repealed. 
(b) COORDINATION UNDER FAMILY MAXIMUM OF REDUCTION IN 
BENEFICIARY'S AUXILIARY BENEFITS WITH SUSPENSION OF AUXILIARY 
BENEFITS OF OTHER BENEFICIARY UNDER EARNINGS TEST.—Section 
203(a)(4) of such Act (42 U.S.C. 403(a)(4)) is amended by striking 
"section 222(b). Whenever" and inserting the following: "section 
222(b). Notwithstanding the preceding sentence, any reduction 
under this subsection in the case of an individual who is entitled 
to a benefit under subsection (b), (c), (d), (e), (f), (g), or (h) of 
section 202 for any month on the basis of the same wages and 
self-employment income as another person— 
"(A) who also is entitled to a benefit under subsection 
(b), (c), (d), (e), (f), (g), or (h) of section 202 for such month, 
"(B) who does not live in the same household as such 
individual, and 
"(C) whose benefit for such month is suspended (in whole 
or in part) pursuant to subsection (h)(3) of this section, 
shall be made before the suspension under subsection (h)(3). When-
ever". 
(c) CONFORMING AMENDMENT APPLYING EARNINGS REPORTING 
REQUIREMENT DESPITE SUSPENSION OF BENEFITS.—^The third sen-
tence of section 203(h)(1)(A) of such Act (42 U.S.C. 403(h)(1)(A)) 
is amended by striking "Such report need not be made" and all 
that follows through 'The Secretary may grant" and inserting the 
following: "Such report need not be made for any taxable year— 
"(i) beginning with or after the month in which such 
individual attained age 70, or 
"(ii) if benefit payments for all months (in such taxable 
year) in which such individual is under age 70 have been 
suspended under the provisions of the first sentence of para-
graph (3) of this subsection, unless— 
"(I) such individual is entitled to benefits under sub-
section (b), (c), (d), (e), (f), (g), or (h) of section 202, 
"(II) such benefits are reduced under subsection (a) 
of this section for any month in such taxable year, and 
"(III) in any such month there is another person who 
also is entitled to benefits under subsection (b), (c), (d), 
(e), (f), (g), or (h) of section 202 on the basis of the same 
wages and self-employment income and who does not live 
in the same household as such individual. 
The Secretary may grant". 
(d) CONFORMING AMENDMENT DELETING SPECIAL INCOME TAX 
TREATMENT OF BENEFITS NO LONGER REQUIRED BY REASON OF 
108 STAT. 1524 
PUBLIC LAW 103-296—AUG. 15, 1994 
REPEAL.—Section 86(d)(1) of the Internal Revenue Code of 1986 
(relating to income tax on social security benefits) is amended 
by striking the last sentence. 
(e) EFFECTIVE DATES.— 
42 use 403 
(1) The amendments made by subsections (a), (b), and 
^°^^- 
(c) shall apply with respect to benefits payable for months 
after December 1995. 
26 use 86 
(2) The amendment made by subsection (d) shall apply 
"°*® 
with respect to benefits received after December 31, 1995, in 
taxable years ending after such date. 
SEC. 310. MAXIMUM FAMILY BENEFITS IN GUARANTEE CASES. 
(a) IN GENERAL.—Section 203(a) of the Social Security Act 
(42 U.S.C. 403(a)) is amended by adding at the end the following 
new paragraph: 
"(10)(A) Subject to subparagraphs (B) and (C)— 
"(i) the total monthly benefits to which beneficiaries may 
be entitled under sections 202 and 223 for a month on the 
basis of the wages and self-employment income of an individual 
whose primary insurance amount is computed under section 
215(a)(2)(B)(i) shall equal the total monthly benefits which 
were authorized by this section with respect to such individual's 
primary insurance amount for the last month of his prior 
entitlement to disability insurance benefits, increased for this 
purpose by the general benefit increases and other increases 
under section 215(i) that would have applied to such total 
monthly benefits had the individual remained entitled to 
disability insurance benefits until the month in which he 
became entitled to old-age insurance benefits or reentitled to 
disability insurance benefits or died, and 
"(ii) the total monthly benefits to which beneficiaries may 
be entitled under sections 202 and 223 for a month on the 
basis of the wages and self-employment income of an individual 
whose primary insurance amount is computed under section 
215(a)(2)(C) shall equal the total monthly benefits which were 
authorized by this section with respect to such individual's 
primary insurance amount for the last month of his prior 
entitlement to disability insurance benefits. 
"(B) In any case in which— 
"(i) the total monthly benefits with respect to such individ-
ual's primary insurance amount for the last month of his prior 
entitlement to disability insurance benefits was computed under 
paragraph (6), and 
"(ii) the individual's prima^ insurance amount is computed 
under subparagraph (B)(i) or (C) of section 215(a)(2) by reason 
of the individual's entitlement to old-age insurance benefits 
or death, 
the total monthly benefits shall equal the total monthly benefits 
that would have been authorized with respect to the primary insur-
ance amount for the last month of his prior entitlement to disability 
insurance benefits if such total monthly benefits had been computed 
without regard to paragraph (6). 
"(C) This paragraph shall apply before the application of para-
graph (3)(A), and before the application of section 203(a)(1) of this 
Act as in effect in December 1978.". 
(b) CONFORMING AMENDMENT,—Section 203(a)(8) of such Act 
(42 U.S.C. 403(a)(8)) is amended by striking "Subject to paragraph 
note. 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1525 
(7)," and inserting "Subject to paragraph (7) and except as otherwise 
provided in paragraph (10)(C),". 
(c) EFFECTIVE DATE.—The amendments made by this section 
f2VSC403 
shall apply for the purpose of determining the total monthly benefits 
to which beneficiaries may be entitled under sections 202 and 
223 of the Social Security Act based on the wages and self-employ-
ment income of an individual who— 
(1) becomes entitled to an old-age insurance benefit under 
section 202(a) of such Act, 
(2) becomes reentitled to a disability insurance benefit 
under section 223 of such Act, or 
(3) dies, 
after December 1995. 
SEC. 311. AUTHORIZATION FOR DISCLOSURE OF SOCIAL SECURITY 
INFORMATION FOR PURPOSES OF PUBUC OR PRIVATE 
EPIDEMIOLOGICAL AND SIMILAR RESEARCH. 
(a) IN GENERAL.—Section 1106 of the Social Security Act (42 
U.S.C. 1306) is amended— 
(1) by redesignating subsections (d) and (e) as subsections 
(e) and (f), respectively; 
(2) in subsection (f) (as so redesignated), by striking "sub-
section (d)" and inserting "subsection (e)"; and 
(3) by inserting after subsection (c) the following new sub-
section: 
"(d) Notwithstanding any other provision of this section, in 
any case in which— 
"(1) information regarding whether an individual is shown 
on the records of the Secretary as being alive or deceased 
is requested from the Secretary for purposes of epidemiological 
or similar research which the Secretary finds may reasonably 
be expected to contribute to a national health interest, and 
"(2) the requester agrees to reimburse the Secretary for 
providing such infoinnation and to comply with limitations on 
safeguarding and rerelease or redisclosure of such information 
as may be specified by the Secretary, 
the Secretary shall comply with such request, except to the extent 
that compliance with such request would constitute a violation 
of the terms of any contract entered into under section 205(r).". 
(b) AVAILABILITY OF INFORMATION RETURNS REGARDING WAGES 
PAID EMPLOYEES.—Section 6103(1)(5) of the Internal Revenue Code 
of 1986 (relating to disclosure of returns and return information 
to the Department of Health and Human Services for purposes 
other than tax administration) is amended— 
(1) by striking "for the purpose of and inserting "for the 
purpose of—"; 
(2) by striking "carrying out, in accordance with an agree-
ment" and inserting the following: 
"(A) carrying out, in accordance with an agreement"; 
(3) by striking "program." and inserting "program; or"; 
and 
(4) by adding at the end the following new subparagraph: 
"(B) providing information regarding the mortality sta-
tus of individuals for epidemiological and similar research 
in accordance with section 1106(d) of the Social Security 
ri 
Act.". 
108 STAT. 1526 
PUBLIC LAW 103-296—AUG. 15, 1994 
26 use 6103 
(c) EFFECTIVE DATE.—^The amendments made by this section 
^ 
shall apply with respect to requests for information made after 
the date of the enactment of this Act. 
SEC. 312. MISUSE OF SYMBOLS, EMBLEMS, OR NAMES IN REFERENCE 
TO SOCIAL SECURITY ADMINISTRATION OR DEPARTMENT 
OF HEALTH AND HUMAN SERVICES. 
(a) PROHIBITION OF UNAUTHORIZED REPRODUCTION, REPRINT-
ING, 
O
R 
DISTRIBUTION 
FOR 
FEE 
OF 
CERTAIN 
OFFICIAL 
PUBLICATIONS.—Section 1140(a) of the Social Security Act (42 
U.S.C. 1320b-10(a)) is amended— 
(1) by redesignating paragraphs (1) and (2) as subpara-
graphs (A) and (B), respectively; 
(2) by inserting "(1)" after "(a)"; and 
(3) by adding at the end the following new paragraph: 
"(2) No person may, for a fee, reproduce, reprint, or distribute 
any item consisting of a form, application, or other publication 
of the Social Security Administration or of the Department of Health 
and Human Services unless such person has obtained specific, 
written authorization for such activity in accordance with regula-
tions which the Secretary shall prescribe.". 
(b) ADDITION TO PROHIBITED WORDS, LETTERS, SYMBOLS, AND 
EMBLEMS.—Paragraph (1) of section 1140(a) of such Act (as redesig-
nated by subsection (a)) is further amended— 
(1) in subparagraph (A) (as redesignated), by striking 
"Administration', the letters 'SSA' or 'HCFA'," and inserting 
"Administration', 'Department of Health and Human Services', 
'Health and Human Services', 'Supplemental Security Income 
Program', or 'Medicaid', the letters 'SSA', 'HCFA', 'DHHS', 
'HHS',or'SSr,";and 
(2) in subparagraph (B) (as amended by section 304 and 
as redesignated), by strildng "Social Security Administration" 
each place it appears and inserting "Social Security Administra-
tion, Health Care Financing Administration, or Department 
of Health and Human Services", by striking "or of the Health 
Care Financing Administration", and by inserting "or the Medi-
care card," after "205(c)(2)(F)". 
(c) EXEMPTION FOR USE OF WORDS, LETTERS, SYMBOLS, AND 
EMBLEMS OF STATE AND LOCAL GOVERNMENT AGENCIES BY SUCH 
AGENCIES.—Paragraph (1) of section 1140(a) of such Act (as redesig-
nated by subsection (a)) is further amended by adding at the end 
the following new sentence: "The preceding provisions of this sub-
section shall not apply with respect to the use by any agency 
or instrumentality of a State or political subdivision of a State 
of any words or letters which identify an agency or instrumentality 
of such State or of a political subdivision of such State or the 
use by any such agency or instrumentality of any s3anbol or emblem 
of an agency or instrumentality of such State or a political subdivi-
sion of such State.". 
(d) 
INCLUSION 
OP 
REASONABLENESS 
STANDARD.—Section 
1140(a)(1) of such Act (as amended by the preceding provisions 
of this section) is further amended, in the matter following subpara-
graph (B) (as redesignated), by striking "convey and inserting 
"convey, or in a manner which reasonably could be interpreted 
or construed as conveying,". 
(e) INEFFECTIVENESS OF DISCLAIMERS.—Subsection (a) of section 
1140 of such Act (as amended by the preceding provisions of this 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1527 
section) is further amended by adding at the end the following 
new paragraph: 
"(3) Any determination of whether the use of one or more 
words, letters, symbols, or emblems (or any combination or variation 
thereof) in connection with an item described in paragraph (1) 
or the reproduction, reprinting, or distribution of an item described 
in pgiragraph (2) is a violation of this subsection shall be made 
without regard to any inclusion in such item (or any so reproduced, 
reprinted, or distributed copy thereof) of a disclaimer of affiliation 
with the United States Government or any particulsir agency or 
instrumentality thereof.", 
(f) VIOLATIONS WITH RESPECT TO INDIVIDUAL ITEMS.—Section 
1140(b)(1) of such Act (42 U.S.C. 1320b-10(b)(1)) is amended by 
adding at the end the following new sentence: "In the case of 
any items referred to in subsection (a)(1) consisting of pieces of 
mail, each such piece of mail which contains one or more words, 
letters, sjnnbols, or emblems in violation of subsection (a) shall 
represent a separate violation. In the case of any item referred 
to in subsection (a)(2), the reproduction, reprinting, or distribution 
of such item shall be treated as a separate violation with respect 
to each copy thereof so reproduced, reprinted, or distributed.". 
(g) ELIMINATION OF CAP ON AGGREGATE LIABILITY AMOUNT.— 
(1) REPEAL.—Paragraph (2) of section 1140(b) of such Act 
(42 U.S.C. 1320b-10(b)(2)) is repealed. 
(2) CONFORMING AMENDMENTS.—Section 1140(b) of such 
Act is further amended— 
(A) by striking "(1) Subject to paragraph (2), the" and 
inserting "The"; 
(B) by redesignating subparagraphs (A) and (B) as 
paragraphs (1) and (2), respectively; and 
(C) in paragraph (1) (as redesignated), by striking 
"subparagraph (B)" and inserting "paragraph (2)". 
(h) REMOVAL OF FORMAL DECLINATION REQUIREMENT.—Section 
1140(c)(1) of such Act (42 U.S.C. 1320b-10(c)(1)) is amended by 
inserting "and the first sentence of subsection (c)" after "and (i)". 
(i) PENALTIES RELATING TO SOCIAL SECURITY ADMINISTRATION 
DEPOSITED IN O A S I TRUST FUND, AND PENALTIES RELATED TO 
HEALTH CARE FINANCING ADMINISTRATION DEPOSITED IN THE HI 
AND SMI TRUST FUNDS.—Section 1140(c)(2) of such Act (42 U.S.C. 
1320b-10(c)(2)) is amended in the second sentence by striking 
"United States." and inserting "United States, except that (A) to 
the extent that such amounts are recovered under this section 
as penalties imposed for misuse of words, letters, symbols, or 
emblems relating to the Social Security Administration, such 
amounts shall be deposited into the Federal Old-Age and Survivors 
Insurance Trust Fund, and (B) to the extent that such amounts 
are recovered under this section as penalties imposed for misuse 
of words, letters, symbols, or emblems relating to the Department 
of Health and Human Services, such amounts shall be deposited 
into the Federal Hospital Insurance Trust Fund or the Federal 
Supplementary Medical Insurance Trust Fund, as appropriate.". 
(j) ENFORCEMENT.—Section 1140 of such Act (42 U.S.C. 1320b-
10) is amended by adding at the end the following new subsection: 
"(d) The preceding provisions of this section may be enforced 
through the Office of the Inspector General of the Department 
of Health and Human Services.". 
(k) REPORTS.— 
42 use 
' 
1320b-10 note. 
108 STAT. 1528 
PUBLIC LAW 103-296—AUG. 15, 1994 
(1) IN GENERAL.—The Secretary of Health and Human 
Services and the Commissioner of Social Security shall each 
submit to the Committee on Ways and Means of the House 
of Representatives and the Committee on Finsmce of the Senate 
3 reports on the operation of section 1140 of the Social Security 
Act with respect to the Social Security Administration or the 
Department of Health and Human Services during the period 
covered by the report, which shall specify— 
(A) the number of complaints of violations of such 
section received by the Social Security Administration or 
the Department of Health and Human Services during 
the period, 
(B) the number of cases in which the Social Security 
Administration or the Department, during the period, sent 
a notice of violation of such section requesting that an 
individual cease activities in violation of such section, 
(C) the number of cases in which the Social Security 
Administration or the Department formally proposed a civil 
money penalty in a demand letter during the period, 
(D) the total amount of civil money penalties assessed 
by the Social Security Administration or the Department 
under this section during the period, 
(E) the number of requests for hearings filed during 
the period by the Social Security Administration or the 
Department pursuant to sections 1140(c)(1) and 1128A(c)(2) 
of the Social Security Act, 
(F) the disposition during the period of hearings filed 
pursuant to sections 1140(c)(1) and 1128A(c)(2) of the Social 
Security Act, and 
(G) the total amount of civil money penalties collected 
under this section and deposited into the Federal Old-
Age and Survivors Insurance Trust Fund or the Health 
Insurance and Supplementary Medical Insurance Trust 
Funds, as applicable, during the period. 
(2) WHEN DUE.—^The reports required by paragraph (1) 
shall be submitted not later than December 1, 1995, not later 
than December 1, 1997, and not later than December 1, 1999, 
respectively. 
(1) PROHIBITION OF MISUSE OF DEPARTMENT OF THE TREASURY 
NAMES, SYMBOLS, ETC.— 
(1) GENERAL RULE.—Subchapter II of chapter 3 of title 
31, United States Code, is amended by adding at the end 
thereof the following new section: 
"§ 333. Prohibition of misuse of Department of the Treasury 
names, symbols, etc. 
"(a) GENERAL RULE.—^No person may use, in connection with, 
or as a part of, any advertisement, solicitation, business activity, 
or product, whether alone or with other words, letters, symbols, 
or emblems— 
"(1) the words 'Department of the Treasur)^', or the name 
of any service, bureau, office, or other subdivision of the Depart-
ment of the Treasury, 
"(2) the titles 'Secretary of the Treasury' or Treasurer 
of the United States' or the title of any other officer or employee 
of the Department of the Treasury, 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1529 
"(3) the abbreviations or initials of any entity referred 
to in paragraph (1), 
"(4) the words 'United States Savings Bond' or the name 
of any other obUgation issued by the Department of the Treas-
ury, 
"(5) any symbol or emblem of an entity referred to in 
paragraph (1) (including the design of any envelope or station-
ary used by such an entity), and 
"(6) any colorable imitation of any such words, titles, abbre-
viations, initials, symbols, or emblems, 
in a manner which could reasonably be interpreted or construed 
as conveying the false impression that such advertisement, solicita-
tion, business activity, or product is in any manner approved, 
endorsed, sponsored, or authorized by, or associated with, the 
Department of the Treasury or any entity referred to in paragraph 
(1) or any officer or employee thereof. 
"(b) 
TREATMENT 
OF DISCLAIMERS.—Any determination of 
whether a person has violated the provisions of subsection (a) 
shall be made without regard to any use of a disclaimer of affiliation 
with the United States Government or any particular agency or 
instrumentality thereof. 
"(c) CIVIL PENALTY.— 
"(1) IN GENERAL.—^The Secretary of the Treasury may 
impose a civil penalty on any person who violates the provisions 
of subsection (a). 
"(2) AMOUNT OF PENALTY.—The amount of the civil penalty 
imposed by paragraph (1) shall not exceed $5,000 for each 
use of any material in violation of subsection (a). If such use 
is in a broadcast or telecast, the preceding sentence shall be 
applied by substituting '$25,000' for '$5,000'. 
"(3) TIME LIMITATIONS.— 
"(A) ASSESSMENTS.—The Secretary of the Treasury 
may assess any civil penalty under paragraph (1) at any 
time before the end of the 3-year period beginning on 
the date of the violation with respect to which such penalty 
is imposed. 
"(B) CIVIL ACTION.—^The Secretary of the Treasury may 
commence a civil action to recover any penalty imposed 
under this subsection at any time before the end of the 
2-year period beginning on the date on which such penalty 
was assessed. 
"(4) COORDINATION WITH SUBSECTION (d).—NO penalty may 
be assessed under this subsection with respect to any violation 
after a criminal proceeding with respect to such violation has 
been commenced under subsection (d). 
"(d) CRIMINAL PENA]:.TY.— 
"(1) IN GENERAL.—If any person knowingly violates sub-
section (a), such person shall, upon conviction thereof, be fined 
not more than $10,000 for each such use or imprisoned not 
more than 1 year, or both. If such use is in a broadcast or 
telecast, the preceding sentence shall be applied by substituting 
'$50,000' for '$10,000'. 
"(2) TIME LIMITATIONS.—No person may be prosecuted, 
tried, or punished under paragraph (1) for any violation of 
subsection (a) unless the indictment is found or the information 
instituted during the 3-year period beginning on the date of 
the violation. 
108 STAT. 1530 
PUBLIC LAW 103-296—AUG. 15, 1994 
"(3) COORDINATION WITH SUBSECTION (C).—No criminal 
proceeding may be commenced under this subsection with 
respect to any violation if a civil penalty has previously been 
assessed under subsection (c) with respect to such violation.". 
(2) CLERICAL AMENDMENT.—The analysis for chapter 3 of 
title 31, United States Code, is amended by adding after the 
item relating to section 332 the following new item: 
"333. Prohibition of misuse of Department of the Treasury names, sjrmbols, etc.". 
(3) REPORT.—Not later than May 1, 1996, the Secretary 
of the Treasury shall submit a report to the Committee on 
Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate on the implementation 
of the amendments made by this section. Such report shall 
include the number of cases in which the Secretary has notified 
persons of violations of section 333 of title 31, United States 
Code (as added by subsection (a)), the number of prosecutions 
commenced under such section, and the total amount of the 
penalties collected in such prosecutions. 
31 use 333 
(m) EFFECTIVE DATE.— 
^°^- 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendments made by this section shall apply with respect 
to violations occurring after March 31,1995. 
(2) PROHIBITION OF MISUSE OF DEPARTMENT OF THE TREAS-
URY NAMES, SYMBOLS, ETC.—Subsection (1)(3) shall take effect 
on the date of the enactment of this Act, and the amendments 
made by paragraphs (1) and (2) of subsection (1) shall apply 
with respect to violations occurring after such date. 
SEC. 313. INCREASED PENALTIES FOR UNAUTHORIZED DISCLOSURE 
OF SOCIAL SECURITY INFORMATION. 
(a) UNAUTHORIZED DISCLOSURE.—Section 1106(a) of the Social 
Security Act (42 U.S.C. 1306(a)) is amended— 
(1) by striking "misdemeanor" and inserting "felony"; 
(2) by striking "$1,000" and inserting "$10,000 for each 
occurrence of a violation"; and 
(3) by striking "one year" and inserting "5 years". 
(b) UNAUTHORIZED DISCLOSURE BY FRAUD.—Section 1107(b) of 
such Act (42 U.S.C. 1307(b)) is amended— 
(1) by inserting "social security account number," after 
"information as to the"; 
(2) by sfriking "misdemeanor" and inserting "felony"; 
(3) by striking "$1,000" and inserting "$10,000 for each 
occurrence of a violation"; and 
(4) by striking "one year" and inserting "5 years". 
42 use 1306 
(c) EFFECTIVE DATE.—^The amendments made by this section 
^°^- 
shall apply to violations occurring on or after the date of the 
enactment of this Act. 
SEC. 314. INCREASE IN AUTHORIZED PERIOD FOR EXTENSION OF TIME 
TO FILE ANNUAL EARNINGS REPORT. 
(a) IN GENERAL.—Section 203(h)(1)(A) of the Social Security 
Act (42 U.S.C. 403(h)(1)(A)) is amended in the last sentence by 
striking "three months" and inserting "four months". 
42 use 403 
(b) EFFECTIVE DATE.—^The amendment made by subsection (a) 
"°*®- 
shall apply with respect to reports of earnings for taxable years 
ending on or after December 31, 1994. 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1531 
SEC. 315. EXTENSION OF DISABILITY INSURANCE PROGRAM DEM-
ONSTRATION PROJECT AUTHORITY. 
(a) IN GENERAL.—Section 505 of the Social Security Disability 
Amendments of 1980 (Public Law 96-265), as amended by section 
12101 of the Consolidated Omnibus Budget Reconciliation Act of 
1985 (Public Law 99-272), section 10103 of the Omnibus Budget 
Reconciliation Act of 1989 (Public Law 101-239), and section 5120 
of the Omnibus Budget Reconciliation Act of 1990 (Public Law 
101-508), is further amended— 
42 use 1310 
(1) in pgiragraph (3) of subsection (a), by striking "June "°*^-
10, 1993" and inserting "June 10, 1996"; 
(2) in paragraph (4) of subsection (a), by striking "1992" 
and inserting "1995"; and 
(3) in subsection (c), by striking "October 1, 1993" and 
inserting "October 1, 1996". 
(b) EFFECTIVE DATE.—^The amendments made by this section 42 use i3io 
shall take effect on the date of the enactment of this Act. 
"
°
*
^
® 
SEC. 316. CROSS-MATCHING OF SOCIAL SECURITY ACCOUNT NUMBER 
i 
INFORMATION AND EMPLOYER IDENTIFICATION NUMBER 
INFORMATION MAINTAINED BY THE DEPARTMENT OF • 
AGRICULTURE. 
(a) SOCIAL SECURITY ACCOUNT NUMBER INFORMATION.—Clause 
(iii) of section 205(c)(2)(C) of the Social Security Act (42 U.S.C. 
405(c)(2)(C)) (as added by section 1735(a)(3) of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (Public Law 101-624; 104 
Stat. 3791)) is amended— 
(1) by inserting "(I)" after "(iii)"; and 
(2) by striking 'The Secretary of Agriculture shall restrict" 
and all that follows and inserting the following: 
"(II) The Secretary of Agriculture may share any information 
contained in any list referred to in subclause (I) with any other . . 
agency or instrumentality of the United States which otherwise 
has access to social security account numbers in accordance with 
this subsection or other applicable Federal law, except that the 
Secretary of Agriculture may share such information only to the 
extent that such Secretary determines such sharing would assist 
in verifying and matching such information against information 
maintained by such other agency or instrumentality. Any such 
information shared pursuant to this subclause may be used by 
such other agency or instrumentality only for the purpose of effec-
tive administration and enforcement of the Food Stamp Act of 
1977 or for the purpose of investigation of violations of other Federal 
laws or enforcement of such laws. 
"(Ill) The Secretary of Agriculture, and the head of any other 
agency or instrumentjility referred to in this subclause, shall 
restrict, to the satisfaction of the Secretary of Health and Human 
Services, access to social security account numbers obtained pursu-
ant to this clause only to officers and employees of the United 
States whose duties or responsibilities require access for the pur-
poses described in subclause (II). 
"(IV) The Secretary of Agriculture, and the head of any agency 
or instrumentality with which information is shared pursuant to 
clause (II), shall provide such other safeguards as the Secretary 
of Health and Human Services determines to be necessary or appro- ^ 
priate to protect the confidentiality of the social security account 
numbers.". 
108 STAT. 1532 
PUBLIC LAW 103-296—AUG. 15, 1994 
(b) EMPLOYER IDENTIFICATION NUMBER INFORMATION.—Sub-
section (f) of section 6109 of the Internal Revenue Code of 1986 
(as added by section 1735(c) of the Food, Agriculture, Conservation, 
26 use 6109. 
and Trade Act of 1990 (Public Law 101-624; 104 Stat. 3792)) 
(relating to access to employer identification numbers by Secretary 
of Agriculture for purposes of Food Stamp Act of 1977) is amended— 
(1) by striking paragraph (2) and inserting the following: 
"(2) SHARING OF INFORMATION AND SAFEGUARDS.— 
"(A) SHARING OF INFORMATION.—The Secretary of Agri-
culture may share any information contained in any list 
referred to in paragraph (1) with any other agency or 
instrumentality of the United States which otherwise has 
access to employer identification numbers in accordance 
with this section or other applicable Federal law, except 
that the Secretary of Agriculture may share such informa-
tion only to the extent that such Secretary determines 
such sharing would assist in verifying and matching such 
information against information maintained by such other 
agency or instrumentality. Any such information shared 
pursuant to this subparagraph may be used by such other 
agency or instrumentality only for the purpose of effective 
administration and enforcement of the Food Stamp Act 
of 1977 or for the purpose of investigation of violations 
of other Federal laws or enforcement of such laws. 
"(B) SAFEGUARDS.—The Secretary of Agriculture, and 
the head of any other agency or instrumentality referred 
to in subparagraph (A), shall restrict, to the satisfaction 
of the Secretary of the Treasury, access to employer identi-
fication numbers obtained pursuant to this subsection only 
to officers and employees of the United States whose duties 
or responsibilities require access for the purposes described 
in subparagraph (A). The Secretary of Agriculture, and 
the head of any agency or instrumentality with which 
information is shared pursuant to subparagraph (A), shall 
provide such other safeguards as the Secretary of the Treas-
ury determines to be necessary or appropriate to protect 
the confidentiality of the employer identification numbers."; 
(2) in paragraph (3), by striking "by the Secretary of Agri-
culture pursuant to this subsection" and inserting "pursuant 
to this subsection by the Secretary of Agriculture or the head 
of any agency or instrumentality with which information is 
shared pursuant to paragraph (2)", and by striking "social 
security account numbers" and inserting "employer identifica-
tion numbers"; and 
(3) in paragraph (4), by striking "by the Secretary of Agri-
culture pursuant to this subsection" and inserting "pursuant 
to this subsection by the Secretary of Agriculture or any agency 
or instrumentality with which information is shared pursuant 
to paragraph (2)". 
SEC. 317. CERTAIN TRANSFERS TO RAILROAD RETIREMENT ACCOUNT 
MADE PERMANENT. 
Subsection (c)(1)(A) of section 224 of the Railroad Retirement 
45 use 23ln 
Solvency Act of 1983 (relating to section 72(r) revenue increase 
"°^- 
transferred to certain railroad accounts) is amended by striking 
"with respect to benefits received before October 1, 1992". 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1533 
SEC. 318. AUTHORIZATION FOR USE OF SOCIAL SECURITY ACCOUNT 
NUMBERS BY DEPARTMENT OF LABOR IN ADMINISTRA-
TION OF FEDERAL WORKERS' COMPENSATION LAWS. 
Section 205(c)(2)(C) of the Social Security Act (42 U.S.C. 
405(c)(2)(C)) is amended by adding at the end the following new 
clause: 
"(ix) In the administration of the provisions of chapter 81 
of title 5, United States Code, and the Longshore and Harbor 
Workers' Compensation Act (33 U.S.C. 901 et seq.), the Secretary 
of Labor may require by regulation that any person filing a notice 
of injury or a claim for benefits under such provisions provide 
as part of such notice or claim such person's social security account 
number, subject to the requirements of this clause. No officer or 
employee of the Department of Labor shall have access to any 
such number for any purpose other than the establishment of 
a system of records necessary for the effective administration of 
such provisions. The Secretary of Labor shall restrict, to the satis-
faction of the Secretary of Health and Human Services, access 
to social security account numbers obtained pursuant to this clause 
to officers and employees of the United States whose duties or 
responsibilities require access for the administration or enforcement 
of such provisions. The Secretary of Labor shall provide such other 
safeguards as the Secretary of Health and Human Services deter-
mines to be necessary or appropriate to protect the confidentiality 
of the social security account numbers.". 
SEC. 319. COVERAGE UNDER FICA OF FEDERAL EMPLOYEES TRANS-
FERRED TEMPORARILY TO INTERNATIONAL 
ORGANIZA-
TIONS. 
(a) TREATMENT OF SERVICE IN THE EMPLOY OF INTERNATIONAL 
ORGANIZATIONS BY CERTAIN TRANSFERRED FEDERAL EMPLOYEES.— 
(1) IN GENERAL.—Section 3121 of the Internal Revenue 
Code of 1986 (relating to definitions) is amended by adding 
26 USC 3121. 
at the end the following new subsection: 
"(y) SERVICE IN THE EMPLOY OF INTERNATIONAL ORGANIZATIONS 
B
Y CERTAIN TRANSFERRED FEDERAL EMPLOYEES.— 
"(1) IN GENERAL.—^For purposes of this chapter, service 
performed in the employ of an international organization by 
an individual pursuant to a transfer of such individual to 
such international organization pursuant to section 3582 of 
title 5, United States Code, shall constitute 'employment' if— 
"(A) immediately before such transfer, such individual 
performed service with a Federal agency which constituted 
*emplo3rment' under subsection (b) for purposes of the taxes 
imposed by sections 3101(a) and 3111(a), and 
"(B) such individual would be entitled, upon separation 
from such international organization and proper applica-
tion, to reemployment with such Federal agency under 
such section 3582,. 
"(2) DEFINITIONS.—For purposes of this subsection— 
"(A) FEDERAL AGENCY.—The term 'Federal agency' 
means an agency, as defined in section 3581(1) of title 
5, United States Code. 
"(B) INTERNATIONAL ORGANIZATION.—The term 'inter-
national organization' has the meaning provided such term 
by section 3581(3) of title 5, United States Code." 
108 STAT. 1534 
PUBLIC LAW 103-296-AUG. 15, 1994 
(2) CONTRIBUTIONS BY FEDERAL AGENCY.—Section 3122 of 
such Code (relating to Federal service) is amended by inserting 
after the first sentence the following new sentence: "In the 
case of the taxes imposed by this chapter with respect to 
service performed in the employ of an international organiza-
tion pursuant to a transfer to which the provisions of section 
3121(y) are applicable, the determination of the amount of 
remuneration for such service, and the return and payment 
of the taxes imposed by this chapter, shall be made by the 
head of the Federal agency from which the transfer was made." 
(3) COLLECTION OF EMPLOYEE CONTRIBUTIONS.—Section 
3102 of such Code (relating to deduction of tax from wages) 
is amended by adding at the end the following new subsection: 
"(e) 
SPECIAL 
RULE 
FOR CERTAIN 
TRANSFERRED 
FEDERAL 
EMPLOYEES.—In the case of any payments of wages for service 
performed in the employ of an international organization pursuant 
to a transfer to which the provisions of section 3121(y) are 
applicable— 
"(1) subsection (a) shall not apply, 
"(2) the head of the Federal agency from which the transfer 
was made shall separately include on the statement required 
under section 6051— 
"(A) the amount determined to be the amount of the 
wages for such service, and 
"(B) the amount of the tax imposed by section 3101 
on such payments, and 
"(3) the tax imposed by section 3101 on such payments 
shall be paid by the employee." 
(4) EXCLUSION FROM TREATMENT AS TRADE OR BUSINESS.— 
Paragraph (2)(C) of section 1402(c) of such Code (defining trade 
or business) is amended by adding at the end the following: 
"except service which constitutes Employment' under section 
3121(y),". 
(5) CONFORMING AMENDMENT.—Paragraph (15) of section 
3121(b) of such Code is amended by inserting ", except service 
which constitutes 'employment' under subsection (y)" after 
"organization". 
(b) AMENDMENTS TO THE SOCIAL SECURITY ACT.— 
(1) IN GENERAL.—Section 210 of the Social Security Act 
(42 U.S.C. 410) is amended by adding at the end the following 
new subsection: 
"SERVICE IN THE EMPLOY OF INTERNATIONAL ORGANIZATIONS BY 
CERTAIN TRANSFERRED FEDERAL EMPLOYEES 
"(r)(l) For purposes of this title, service performed in the employ 
of an international organization by an individual pursuant to a 
transfer of such individual to such international organization pursu-
ant to section 3582 of title 5, United States Code, shall constitute 
'employment' if— 
"(A) immediately before such transfer, such individual per-
formed service with a Federal agency which constituted 
'employment' as defined in subsection (a), and 
"(B) such individual would be entitled, upon separation 
from such international organization and proper application, 
to reemployment with such Federal agency under such section 
3582. 
"(2) For purposes of this subsection: 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1535 
"(A) The term 'Federal agency' means an agency, as defined 
in section 3581(1) of title 5, United States Code. 
"(B) The term 'international organization' has the meaning 
provided such term by section 3581(3) of title 5, United States 
Code." 
(2) EXCLUSION FROM TREATMENT AS TRADE OR BUSINESS.— 
Section 211(c)(2)(C) of such Act (42 U.S.C. 411(c)(2)(C)) is 
amended by inserting before the semicolon the following 
", except service which constitutes 'employment' under section 
210(r)". 
(3) CONFORMING AMENDMENT.—Section 210(a)(15) of such 
Act (42 U.S.C. 410(a)(15)) is amended by inserting ", except 
service which constitutes 'employment' under subsection (r)" 
before the semicolon. 
(c) EFFECTIVE DATE.—^^The amendments made by this section 26 use 1402 
shall apply with respect to service performed after the calendar ^°^^-
quarter following the calendar quarter in which the date of the 
enactment of this Act occurs, 
SEC. 320. EXTENSION OF THE PICA TAX EXEMPTION AND CERTAIN 
TAX RULES TO INDIVIDUALS WHO ENTER THE UNITED 
STATES UNDER A VISA ISSUED UNDER SECTION 101 OF 
THE IMMIGRATION AND NATIONALITY ACT. 
(a) AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986.— 
(1) The following provisions of the Internal Revenue Code 
of 1986 are each amended by striking "(J), or (M)" each place 
it appears and inserting "(J), (M), or (Q)": 
(A) Section 871(c). 
(B) Section 1441(b). 
(C) Section 312 l(b)( 19). 
(D) Section 3231(e)(1). 
(E) Section 3306(c)( 19). 
(2) Paragraph (3) of section 872(b) of such Code is amended 
by striking "(F) or (J)" and inserting "(F), (J), or (Q)". 
(3) Paragraph (5) of section 7701(b) of such Code is 
amended by striking "subparagraph (J)" in subparagraphs (C)(i) 
and (D)(i)(II) and inser1;ing "subparagraph (J) or (Q)". 
(b) AMENDMENT TO SOCIAL SECURITY ACT.—Paragraph (19) of 
section 210(a) of the Social Security Act is amended by striking 
"(J), or (M)" each place it appears and inserting "(J), (M), or (Q)". 
(c) EFFECTIVE DATE,—The amendments made by this subsection 
shall take effect with the calendar quarter following the date of 
the enactment of this Act. 
SEC. 321. TECHNICAL AND CI^RICAL AMENDMENTS. 
(a) AMENDMENTS TO TITLE II OF THE SOCIAL SECURITY ACT.— 
(1) Section 201(a) of the Social Security Act (42 U.S.C. 
401(a)) is amended, in the matter following clause (4), by strik-
ing "and and" and inserting "and". 
(2) Section 
202(d)(8)(D)(ii) of such Act (42 U.S.C. 
402(d)(8)(D)(ii)) is amended by adding a period at the end, 
and by adjusting the left hand margination thereof so as to 
align with section 202(d)(8)(D)(i) of such Act. 
(3) Section 202(q)(l)(A) of such Act (42 U.S.C. 402(q)(l)(A)) 
is amended by striking the dash at the end. 
(4) Section 202(q)(9) of such Act (42 U.S.C. 402(q)(9)) is 
amended, in the matter preceding subparagraph (A), by striking 
"parargaph" and inserting "paragraph". 
108 STAT. 1536 
PUBLIC LAW 103-296—AUG. 15, 1994 
(5) Section 202(t)(4)(D) of such Act (42 U.S.C. 402(t)(4)(D)) 
is amended by inserting "if the" before "Secretary" the second 
and third places it appears. 
(6) Clauses (i) and (ii) of section 203(f)(5)(C) of such Act 
(42 U.S.C. 403(f)(5)(C)) are amended by adjusting the left-
hand margination thereof so as to align with clauses (i) and 
(ii) of section 203(f)(5)(B) of such Act. 
(7) Paragraph (3)(A) and paragraph (3)(B) of section 205(b) 
of such Act (42 U.S.C. 405(b)) are amended by adjusting the 
left-hand margination thereof so as to align with the matter 
following section 205(b)(2)(C) of such Act. 
(8) Section 
205(c)(2)(B)(iii) of such Act (42 U.S.C. 
405(c)(2)(B)(iii)) is amended by striking "non-public" and insert-
ing "nonpublic". 
(9) Section 205(c)(2)(C) of such Act (42 U.S.C. 405(c)(2)(C)) 
is amended— 
(A) by striking the clause (vii) added by section 2201(c) 
of Public Law 101-624; 
(B) by redesignating the clause (iii) added by section 
2201(b)(3) of Public Law 101-624, clause (iv), clause (v), 
clause (vi), and the clause (vii) added by section 1735(b) 
of Public Law 101-624 as clause (iv), clause (v), clause 
(vi), clause (vii), and clause (viii), respectively; 
(C) in clause (v) (as redesignated), by 
striking 
"subclause (I) of, and by striking "subclause (II) of clause 
(i)" and inserting "clause (ii)"; and 
(D) in clause (viii)(IV) (as redesignated), by inserting 
"a social security account number or" before "a request 
for". 
(10) The heading for section 2050') of such Act (42 U.S.C. 
405(j)) is amended to read as follows: 
"Representative Payees". 
(11) The heading for section 205(s) of such Act (42 U.S.C. 
405(s)) is amended to read as follows: 
"Notice Requirements". 
(12) Section 208(c) of such Act (42 U.S.C. 408(c)) is amended 
by striking "subsection (g)" and inserting "subsection (a)(7)". 
(13) Section 210(a)(5)(B)(i)(V) of such Act (42 U.S.C. 
410(a)(5)(B)(i)(V)) is amended by striking "section 105(e)(2)" 
and inserting "section 104(e)(2)". 
(14) Section 211(a) of such Act (42 U.S.C. 411(a)) is 
amended— 
(A) in paragraph (13), by striking "and" at the end; 
and 
(B) in paragraph (14), by striking the period and insert-
ing"; and". 
(15) Section 213(c) of such Act (42 U.S.C. 413(c)) is amended 
by striking "section" the first place it appears and inserting 
"sections" 
(16) 'Section 
215(a)(5)(B)(i) of such Act (42 U.S.C. 
415(a)(5)(B)(i)) is amended by striking "subsection" the second 
place it appears and inserting "subsections". 
(17) Section 215(f)(7) of such Act (42 U.S.C. 415(f)(7)) is 
amended by inserting a period after "1990". 
PUBLIC LAW 103-296—AUG, 15, 1994 
108 STAT. 1537 
(18) Subparagraph (F) of section 218(c)(6) of such Act (42 
U.S.C. 418(c)(6)) is amended by adjusting the 
left-hand 
margination thereof so as to align with section 218(c)(6)(E) 
of such Act. 
(19) Section 223(i) of such Act (42 U.S.C. 423(i)) is amended 
by adding at the beginning the following heading: 
"Limitation on Payments to Prisoners". 
(b) RELATED AMENDMENTS.— 
(1) Section 603(b)(5)(A) of Public Law 101-649 (amending 
section 202(n)(l) of the Social Security Act) (104 Stat. 5085) 
is amended by inserting "under" before "paragraph (1)," and 42 use 402. 
by striking "(17), or (18)" and inserting "(17), (18), or (19)", 
effective as if this paragraph were included in such section 
603(b)(5)(A). 
(2) Section 10208(b)(1) of Public Law 101-239 (amending 
section 230(b)(2)(A) of the Social Security Act) (103 Stat. 2477) 
is amended by striking "230(b)(2)(A)" and "430(b)(2)(A)" and 42 use 430. 
inserting "230(b)(2)" and "430(b)(2)", respectively, effective as 
if this paragraph were included in such section 10208(b)(1). 
(c) CONFORMING, CLERICAL AMENDMENTS UPDATING, WITHOUT 
SUBSTANTIVE CHANGE, REFERENCES IN TITLE II OF THE SOCIAL 
SECURITY ACT TO THE INTERNAL REVENUE CODE.— 
(l)(A)(i) Section 201(g)(1) of such Act (42 U.S.C. 401(g)(1)) 42 USC 401 
is amended— 
^°^-
(I) in subparagraph (A)(i), by striking "and subchapter 
E" and all that follows through "1954" and inserting "and 
chapters 2 and 21 of the Internal Revenue Code of 1986"; 
(II) in subparagraph (A)(ii), by striking "1954" and 
inserting "1986"; 
(III) in the matter in subparagraph (A) following clause 
(ii), by striking "subchapter E" and ail that follows through 
"1954." and inserting "chapters 2 and 21 of the Internal 
Revenue Code of 1986.", and by striking "1954 other" and 
inserting "1986 other"; and 
(IV) in subparagraph (B), by striking "1954" each place 
it appears and inserting "1986". 
(ii) The amendments made by clause (i) shall apply only 
with respect to periods beginning on or sifter the date of the 
enactment of this Act. 
(B)(i) Section 201(g)(2) of such Act (42 U.S.C. 401(g)(2)) 
is amended by striking "section 3101(a)" and all that follows 
through "1950." and inserting "section 3101(a) of the Internal 
Revenue Code of 1986 which are subject to refund under section 
6413(c) of such Code with respect to wages (as defined in 
section 3121 of such Code).", and by striking "wages reported" 
and all that follows through "1954," and inserting "wages 
reported to the Secretary of the Treasury or his delegate pursu-
ant to subtitle F of such Code,". 
(ii) The amendments made by clause (i) shall apply only 42 use 40i 
with respect to wages paid on or after January 1, 1995. 
^°^-
(C) Section 201(g)(4) of such Act (42 U.S.C. 401(g)(4)) is 
amended— 
(i) by striking 'The Board of Trustees shall prescribe 
before January 1, 1981, the method" and inserting "If at 
any time or times the Boards of Trustees of such Trust 
108 STAT. 1538 
PUBLIC LAW 103-296—AUG. 15, 1994 
Funds deem such action advisable, they may modify the 
method prescribed by such Boards"; 
(ii) by striking "1954" and inserting "1986"; and 
(iii) by striking the last sentence. 
(2) Section 202(v) of such Act (42 U.S.C. 402(v)) is 
amended— 
(A) in paragraph (1), by striking "1954" and inserting 
"1986"; and 
(B) in paragraph (3)(A), by inserting "of the Internal 
Revenue Code of 1986" after "3127". 
(3) 
Section 
205(c)(5)(F)(i) 
of 
such 
Act 
(42 
U.S.C. 
405(c)(5)(F)(i)) is amended by inserting "or the Internal Revenue 
Code of 1986" after " 1954". 
(4)(A) Section 
209(a)(4)(A) of such Act (42 U.S.C. 
409(a)(4)(A)) is amended by inserting "or the Internal Revenue 
Code of 1986" after "Internal Revenue Code of 1954". 
(B) Section 209(a) of such Act (42 U.S.C. 409(a)) is 
amended— 
(i) in subparagraphs (C) and (E) of paragraph (4), 
(ii) in paragraph (5)(A), 
(iii) in subparagraphs (A) and (B) of paragraph (14), 
(iv) in paragraph (15), 
(v) in paragraph (16), and 
(vi) in paragraph (17), 
by striking "1954" each place it appears and inserting "1986". 
(C) Subsections (b), (D, (g), (i)(l), and (j) of section 209 
of such Act (42 U.S.C. 409) are amended by striking "1954" 
each place it appears and inserting "1986", 
(5) Section 211(a)(15) of such Act (42 U.S.C. 411(a)(15)) 
is amended by inserting "of the Internal Revenue Code of 
1986" after "section 162(m)". 
(6) Title II of such Act is further amended— 
(A) in subsections (f)(5)(B)(ii) and (k) of section 203 
(42 U.S.C. 403), 
(B) in section 205(c)(l)(D)(i) (42 U.S.C. 405(c)(l)(D)(i)), 
(C) in the matter in section 210(a) (42 U.S.C. 410(a)) 
preceding paragraph (1) and in paragraphs (8), (9), and 
(10) of section 210(a), 
(D) in subsections (p)(4) and (q) of section 210 (42 
U.S.C. 410), 
(E) in the matter in section 211(a) (42 U.S.C. 411(a)) 
preceding paragraph (1) and in paragraphs (3), (4), (6), 
(10), (11), and (12) and clauses (iii) and (iv) of section 
211(a), 
(F) in the matter in section 211(c) (42 U.S.C. 411(c)) 
preceding paragraph (1), in paragraphs (3) and (6) of section 
211(c), and in the matter following paragraph (6) of section 
, 
211(c), 
(G) in subsections (d), (e), and (h)(1)(B) of section 211 
(42 U.S.C. 411), 
(H) in section 216(j) (42 U.S.C. 416(j)), 
(I) in section 218(e)(3) (42 U.S.C. 418(e)(3)), 
(J) in section 229(b) (42 U.S.C. 429(b)), 
(K) in section 230(c) (42 U.S.C. 430(c)), and 
(L) in section 232 (42 U.S.C. 432), 
by striking "1954" each place it appears and inserting "1986". 
42 use 401 
(d) RULES OF CONSTRUCTION.— 
note. 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1539 
(1) The preceding provisions of this section shall be con-
strued only as technical and clerical corrections and as reflect-
ing the original intent of the provisions amended thereby. 
(2) Any reference in title II of the Social Security Act 
to the Internal Revenue Code of 1986 shall be construed to 
include a reference to the Internal Revenue Code of 1954 to 
the extent necessary to carry out the provisions of paragraph 
(1). 
(e) UTILIZATION OF NATIONAL AVERAGE WAGE INDEX FOR WAGE-
BASED ADJUSTMENTS.— 
(1) DEFINITION OF NATIONAL AVERAGE WAGE INDEX.—Sec-
tion 209(k) of the Social Security Act (42 U.S.C. 409(k)) is 
amended— 
(A) by redesignating paragraph (2) as paragraph (3); 
(B) in paragraph (3) (as redesignated), by striking 
"paragraph (1)" and inserting "this subsection"; and 
(C) by striking paragraph (1) and inserting the follow-
ing new paragraphs: 
"(k)(l) For purposes of sections 203(f)(8)(B)(ii), 213(d)(2)(B), 
215(a)(l)(B)(ii), 
215(a)(l)(C)(ii), 
215(a)(1)(D), 
215(b)(3)(A)(ii), 
215(i)(l)(E), 215(i)(2)(C)(ii), 224(f)(2)(B), and 230(b)(2) (and 230(b)(2) 
as in effect immediately prior to the enactment of the Social Security 
Amendments of 1977), the term 'national average wage index' for 
any particular calendar year means, subject to regulations of the 
Secretary under paragraph (2), the average of the total wages 
for such particular calendar year. 
"(2) The Secretary shall prescribe regulations under which the 
Regulations. 
national average wage index for any calendar year shall be com-
puted— 
"(A) on the basis of amounts reported to the Secretary 
of the Treasury or his delegate for such year, 
"(B) by disregarding the limitation on wages specified in 
subsection (a)(1), 
"(C) with respect to calendar years after 1990, by incor-
porating deferred compensation amounts and factoring in for 
such years the rate of change from year to year in such 
amounts, in a manner consistent with the requirements of 
section 10208 of the Omnibus Budget Reconciliation Act of 
1989, and 
"(D) with respect to calendar years before 1978, in a man-
ner consistent with the manner in which the average of the 
total wages for each of such calendar years was determined 
as provided by applicable law as in effect for such years.". 
(2) CONFORMING AMENDMENTS.— 
(A) Section 213(d)(2)(B) of such Act (42 U.S.C. 
413(d)(2)(B)) is amended by striking "deemed average total 
wages" and inserting "national average wage index", and 
by striking "the average of the total wages" and all that 
follows and inserting "the national average wage index 
(as so defined) for 1976,". 
(B) Section 215(a)(l)(B)(ii) of such Act (42 U.S.C. 
415(a)(l)(B)(ii)) is amended— 
(i) in subclause (I), by striking "deemed average 
total wages" and inserting "national average wage 
index"; and 
(ii) in subclause (II), by striking "the average of 
the total wages" and all that follows and inserting 
108 STAT. 1540 
PUBLIC LAW 103-296-AUG. 15, 1994 
"the national average wage index (as so defined) for 
1977.". 
(C) Section 215(a)(l)(C)(ii) of such Act (42 U.S.C. 
415(a)(l)(C)(ii)) is amended by striking "deemed average 
total wages" and inserting "nationed average wage index". 
(D) Section 215(a)(1)(D) of such Act (42 U.S.C. 
415(a)(1)(D)) is amended— 
(i) by striking "after 1978"; 
(ii) by striking "and the average of the total wages 
(as described in subparagraph (B)(ii)(I))" and inserting 
"and the national average wage index (as defined in 
section 209(k)(l))"; and 
(iii) by striking the last sentence. 
(E) Section 215(b)(3)(A)(ii) of such Act (42 U.S.C. 
415(b)(3)(A)(ii)) is amended by striking "deemed average 
total wages" each place it appears and inserting "national 
average wage index". 
(F) Section 215(i)(l) of such Act (42 U.S.C. 415(i)(l)) 
is amended— 
(i) in subparagraph (E), by striking "SSA average 
wage index" and inserting "national average wage 
index (as defined in section 209(k)(l))"; and 
(ii) by striking subparagraph (G) and redesignating 
subparagraph (H) as subparagraph (G). 
(G) Section 215(i)(2)(C)(ii) of such Act (42 U.S.C. 
415(i)(l)(C)(ii)) is amended to read as follows: 
"(ii) The Secretary shall determine and promulgate the OASDI 
fund ratio for the current calendar year on or before November 
1 of the current calendar year, based upon the most recent data 
then available. The Secretary shall include a statement of the 
fund ratio and the national average wage index (as defined in 
section 209(k)(l)) and a statement of the effect such ratio and 
the level of such index may have upon benefit increases under 
this subsection in any notification made under clause (i) and any 
determination published under subparagraph (D).". 
(H) Section 224(f)(2) of such Act (42 U.S.C. 424a(f)(2)) 
is amended— 
(i) in subparagraph (A), by adding "and" at the 
end; 
(ii) by striking subparagraph (C); and 
(iii) by striking subparagraph (B) and inserting 
the following: 
"(B) the ratio of (i) the national average wage index (as 
defined in section 209(k)(l)) for the calendar year before the 
year in which such redetermination is made to (ii) the national 
average wage index (as so defined) for the calendar year before 
the year in which the reduction was first computed (but not 
counting any reduction made in benefits for a previous period 
of disability).". 
(f) TECHNICAL CORRECTIONS RELATED TO OASDI IN THE OMNI-
BUS BUDGET RECONCILIATION ACT OF 1990.— 
(1) AMENDMENTS RELATED TO PROVISIONS IN SECTION 5103(b) 
RELATING TO DISABLED WIDOWS.—Section 223(f)(2) of the Social 
Security Act (42 U.S.C. 423(f)(2)) is amended— 
(A) in subparagraph (A), by striking "(in a case to 
which clause (iiXII) does not apply)"; and 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1541 
(B) by striking subparagraph (B)(ii) and inserting the 
following: 
"(ii) the individual is now able to engage in 
substantial gainful activity; or". 
(2) AMENDMENTS RELATED TO PROVISIONS IN SECTION 5105(d) 
RELATING 
TO 
REPRESENTATIVE 
PAYEES.— 
(A) TITLE II AMENDMENTS.—Section 5105(d)(1)(A) of the 
Omnibus Budget Reconciliation Act of 1990 (Public Law 
101-508) is amended— 
42 USC 405. 
(i) by striking "Section 205(j)(5)" and inserting 
"Section 205(j)(6)"; and 
(ii) by redesignating the paragraph (5) as amended 
thereby as paragraph (6). 
(B) TITLE XVI AMENDMENTS.—Section 1631(a)(2) of the 
Social Security Act (42 U.S.C. 1383(a)(2)) is amended— 
(i) by redesignating subparagraphs (E) and (F) as 
subparagraphs (F) and (G), respectively; and 
(ii) by inserting after subparagraph (D) the follow-
ing: 
"(E) RESTITUTION.—In cases where the negligent failure of the 
Secretary t6 investigate or monitor a representative payee results 
in misuse of benefits by the representative payee, the Secretary 
shall make payment to the beneficiary or the beneficiary's represent-
ative payee of an amount equal to such misused benefits. The 
Secretary shall make a good faith effort to obtain restitution from 
the terminated representative payee.". 
(3) AMENDMENTS RELATED TO PROVISIONS IN SECTION 5106 
RELATING TO COORDINATION OF RULES UNDER TITLES II AND 
XVI GOVERNING FEES FOR REPRESENTATIVES OF CLAIMANTS WITH 
ENTITLEMENTS UNDER BOTH TITLES.— 
(A) CALCULATION OF FEE OF CLAIMANT'S REPRESENTA-
TIVE BASED ON AMOUNT OF PAST-DUE SUPPLEMENTAL SECU-
RITY INCOME BENEFITS AFTER APPLICATION OF WINDFALL 
OFFSET PROVISION.—Section 1631(d)(2)(A)(i) of the Social 
Security Act (as amended by section 5106(a)(2) of the Omni-
bus Budget Reconciliation Act of 1990) (42 U.S.C. 
1383(d)(2)(A)(i)) is amended to read as follows: 
"(i) by substituting, in subparagraphs (A)(ii)(I) and (C)(i), 
the phrase '(as determined before any applicable reduction 
under section 1631(g), and reduced by the amount of any reduc-
tion in benefits under this title or title II made pursuant 
to section 1127(a))' for the parenthetical phrase contained 
therein; and". 
(B) CALCULATION OF PAST-DUE BENEFITS FOR PURPOSES 
OF DETERMINING ATTORNEY FEES IN JUDICIAL PROCEED-
INGS.— 
(i) IN GENERAL.—Section 206(b)(1) of such Act (42 
U.S.C. 406(b)(D) is amended— 
(I) by inserting "(A)" after "(b)( 1)"; and 
(II) by adding at the end the following new 
subparagraph: 
"(B) For purposes of this paragraph— 
"(i) the term 'past-due benefits' excludes any benefits with 
respect to which payment has been continued pursuant to sub-
section (g) or (h) of section 223, and 
"(ii) amounts of past-due benefits shall be determined 
before any applicable reduction under section 1127(a).". 
108 STAT. 1542 
PUBLIC LAW 103-296—AUG. 15, 1994 
(ii) PROTECTION FROM OFFSETTING SSI BENEFITS.— 
The last sentence of section 1127(a) of such Act (as 
added by section 5106(b) of the Omnibus Budget Rec-
onciliation Act of 1990) (42 U.S.C. 1320a-6(a)) is 
amended by striking "section 206(a)(4)" and inserting 
"subsection (a)(4) or (b) of section 206". 
(4) APPLICATION OF SINGLE DOLLAR AMOUNT CEILING TO 
CONCURRENT CLAIMS UNDER TITLES II AND XVI.— 
(A) IN GENERAL.—Section 206(a)(2) of such Act (as 
amended by section 5106(a)(1) of the Omnibus Budget Rec-
oncihation Act of 1990) (42 U.S.C. 406(a)(2)) is amended— 
(i) by redesignating subparagraph (C) as subpara-
graph (D); and 
(ii) by inserting after subparagraph (B) the follow-
ing new subparagraph: 
"(C) In any case involving— 
"(i) an agreement described in subparagraph (A) with any 
person relating to both a claim of entitlement to past-due 
benefits under this title and a claim of entitlement to past-
due benefits under title XVI, and 
"(ii) a favorable determination made by the Secretary with 
respect to both such claims, 
the Secretary may approve such agreement only if the total fee 
or fees specified in such agreement does not exceed, in the aggre-
gate, the dollar amount in effect under subparagraph (A)(ii)(II).". 
(B) CONFORMING AMENDMENT.—Section 206(a)(3)(A) of 
such Act (as amended by section 5106(a)(1) of the Omnibus 
Budget Reconciliation Act of 1990) (42 U.S.C. 406(a)(3)(A)) 
is amended by striking "paragraph (2)(C)" and inserting 
"paragraph (2)(D)". 
J2 use 405 
(5) EFFECTIVE DATE.—Each amendment made by this sub-
section shall take effect as if included in the provisions of 
the Omnibus Budget Reconciliation Act of 1990 to which such 
amendment relates, except that the amendments made by para-
graph (3)(B) shall apply with respect to favorable judgments 
made after 180 days gJter the date of the enactment of this 
Act. 
(g) ELIMINATION OF ROUNDING DISTORTION IN THE CALCULATION 
OF THE OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE CONTRIBU-
TION AND BENEFIT 
BASE 
AND THE EARNINGS 
TEST 
EXEMPT 
AMOUNTS.— 
(1) ADJUSTMENT OF OASDI CONTRIBUTION AND BENEFIT 
BASE.— 
(A) IN GENERAL.—Section 230(b) of the Social Security 
Act (42 U.S.C. 430(b)) is amended by striking paragraphs 
(1) and (2) and inserting the following: 
"(1) $60,600, and 
"(2) the ratio of (A) the national average wage index (as 
defined in section 209(k)(l)) for the calendar year before the 
calendar year in which the determination under subsection 
(a) is made to (B) the national average wage index (as so 
defined) for 1992,". 
(B) CONFORMING AMENDMENT RELATING TO APPLICABLE 
PRIOR LAW.—Section 230(d) of such Act (42 U.S.C. 430(d)) 
is amended by striking "(except that" and all that follows 
through the end and inserting "(except that, for purposes 
of subsection (b) of such section 230 as so in effect, the 
note. 
PUBLIC LAW 103-296—AUG. 15, 1994 
108 STAT. 1543 
reference to the contribution and benefit base in paragraph 
(1) of such subsection (b) shall be deemed a reference 
to an amount equal to $45,000, each reference in paragraph 
5 
(2) of such subsection (b) to the average of the wages 
of all employees as reported to the Secretary of the Treas-
ury shall be deemed a reference to the national average 
wage index (as defined in section 209(k)(l)), the reference 
to a preceding calendar year in paragraph (2)(A) of such 
subsection (b) shall be deemed a reference to the calendar 
year before the calendar year in which the determination 
under subsection (a) of such section 230 is made, and 
the reference to a calendar year in paragraph (2)(B) of 
such subsection (b) shall be deemed a reference to 1992).". 
(C) ADJUSTME:NT OF CONTRIBUTION AND BENEFIT BASE 
APPLICABLE IN DETERMINING YEARS OF COVERAGE FOR PUR-
POSES OF SPECIAL MINIMUM PRIMARY INSURANCE AMOUNT.— 
Section 215(a)(l)(C)(ii) of such Act is amended by striking 42 USC 415. 
"(except that" and all that follows through the end and 
inserting "(except that, for purposes of subsection (b) of 
such section 230 as so in effect, the reference to the con-
tribution and benefit base in paragraph (1) of such sub-
section (b) shall be deemed a reference to an amount equal 
to $45,000, each reference in paragraph (2) of such sub-
section (b) to the average of the wages of all employees 
as reported to the Secretary of the Treasury shall be 
deemed a reference to the national average wage index 
(as defined in section 209(k)(l)), the reference to a preced-
ing calendar year in paragraph (2)(A) of such subsection 
(b) shall be deemed a reference to the calendar year before 
the calendar year in which the determination under sub-
section (a) of such section 230 is made, and the reference 
to a calendar year in paragraph (2)(B) of such subsection 
(b) shall be deemed a reference to 1992).". 
(2) ADJUSTMENT OF EARNINGS TEST EXEMPT AMOUNT.—Sec-
tion 203(f)(8)(B)(ii) of the Social Security Act (42 U.S.C. 
403(f)(8)(BXii)) is amended to read as follows: 
"(ii) the product of the corresponding exempt amount 
which is in effect with respect to months in the taxable 
year ending after 1993 and before 1995, and the ratio 
of— 
"(I) the national average wage index (as defined 
in section 209(k)(l)) for the calendar year before the 
calendar year in which the determination 
under 
subparagraph (A) is made, to 
"(II) the national average wage index (as so 
defined) for 1992, 
with such product, if not a multiple of $10, being rounded 
to the next higher multiple of $10 where such product 
is a multiple of $5 but not of $10 and to the nearest 
multiple of $10 in any other case.". 
(3) EFFECTIVE DATES.— 
(A) The amendments made by paragraph (1) shall be 
42 use 415 
effective with respect to the determination of the contribu- 
"°*^ 
tion and benefit base for years after 1994. 
(B) The amendment made by paragraph (2) shall be 42 use 403 
effective with respect to the determination of the exempt 
^°^-
amounts applicable to any taxable year ending after 1994. 
108 STAT. 1544 
PUBLIC LAW 103-296—AUG. 15, 1994 
(h) TECHNICAL AMENDMENTS TO TITLE XVI.—(1) Section 1631 
of the Social Security Act (42 U.S.C. 1383) is amended— 
(A) in the 1st subsection (n), by striking "subsection" and 
inserting "title"; and 
(B) by redesignating the 2nd subsection (n) as sub-
section (o). 
(2) Section 1613(a) of such Act (42 U.S.C. 1382b(a)) is 
amended— 
(A) by striking "and" at the end of paragraph (9); 
(B) by striking the period at the end of the 1st paragraph 
(10) and inserting "; and"; and 
(C) by redesignating the 2nd paragraph (10) as para-
graph (11). 
42 use 1382b 
(3) EFFECTIVE DATE.—The amendments made by this subsection 
"0*®- 
shall take effect on the date of the enactment of this Act. 
Approved August 15, 1994. 
LEGISLATIVE HISTORY—H.R. 4277 (S. 1560): 
HOUSE REPORTS: Nos. 103-506 (Comm. on Ways and Means) and 103-670 
(Comm. of Conference). 
SENATE REPORTS: No. 103-221 accompanying S. 1560 (Comm. on Finance). 
CONGRESSIONAL RECORD, Vol. 140 (1994): 
Mar. 2, S. 1560 considered and passed Senate. 
May 17, H.R. 4277 considered and passed House. 
May 23, considered and passed Senate, amended. 
Aug. 5, Senate agreed to conference report. 
Aug. 11, House agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 30 (1994): 
Aug. 15, Presidential remarks and statement.