Social Security Disability Benefits Reform Act of 1984
PL 98-460 (H.R.3755), enacted 10/09/1984

98 STAT. 1794 
PUBLIC LAW 98-460—OCT. 9, 1984 
Oct. 9, 1984 
[H.R. 3755] 
Social Security 
Disability 
Benefits 
Reform Act of 
1984. 
42 u s e 1305 
note. 
Public Law 98-460 
98th Congress 
An Act 
To amend titles II and XVI of the Social Security Act to provide for reform in the 
disability determination process. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SHORT TITLE AND TABLE OF CONTENTS 
SECTION 1. This Act may be cited as the "Social Security Disability 
Benefits Reform Act of 1984". 
Sec. 1. 
Sec. 2. 
Sec. 3. 
Sec. 4. 
Sec. 5. 
Sec. 6. 
Sec. 7. 
Sec. 8. 
Sec. 9. 
Sec. 10 
Sec. 11 
Sec. 12 
Sec. 13 
Sec. 14 
Sec. 15 
Sec. 16 
Sec. 17 
Sec. 18 
TABLE OF CONTENTS 
Short title and table of contents. 
Standard of review for termination of disability benefits and periods of dis-
ability. 
Evaluation of pain. 
Multiple impairments. 
Moratorium on mental impairment reviews. 
Notice of reconsideration; prereview notice; demonstration projects. 
Continuation of benefits during appeal. 
Qualifications of medical professionals evaluating mental impairments. 
Consultative examinations; medical evidence. 
Uniform standards. 
Payment of costs of rehabilitation services. 
Advisory council study. 
Qualifying experience for appointment of certain staff attorneys to admin-
istrative law judge positions. 
Supplemental security income benefits for individuals who perform sub-
stantial gainful activity despite severe medical impairment. 
Frequency of continuing eligibility reviews. 
Determination and monitoring of need for representative payee. 
Measures to improve compliance with Federal law. 
Separability. 
97 Stat. 134. 
42 u s e 423. 
42 u s e 1395. 
STANDARD OF REVIEW FOR TERMINATION OF DISABILITY BENEFITS AND 
PERIODS OF DISABILITY 
SEC. 2. (a) Section 223(f) of the Social Security Act is amended to 
read as follows: 
"Standard of Review for Termination of Disability Benefits 
"(f) A recipient of benefits under this title or title XVIII based on 
the disability of any individual may be determined not to be entitled 
to such benefits on the basis of a finding that the physical or mental 
impairment on the basis of which such benefits are provided has 
ceased, does not exist, or is not disabling only if such finding is 
supported by— 
"(1) substantial evidence which demonstrates that— 
"(A) there has been any medical improvement in the 
individual's impairment or combination of impairments 
(other than medical improvement which is not related to 
the individual's ability to work), and 
PUBLIC LAW 98-460—OCT. 9, 1984 
98 STAT. 1795 
"(BXi) the individual is now able to engage in substantial 
gainful activity, or 
"(ii) if the individual is a widow or surviving divorced 
wife under section 202(e) or a widower or surviving divorced 42 use 402. 
husband under section 202(f), the severity of his or her 
impairment or impairments is no longer deemed, under 
regulations prescribed by the Secretary, sufficient to pre-
clude the individual from engaging in gainful activity; or 
"(2) substantial evidence which— 
"(A) consists of new medical evidence and (in a case to 
which clause (iiXII) does not apply) a new assessment of the 
individual's residual functional capacity, and demonstrates 
t h a t -
'll) although the individual has not improved medi-
cally, he or she is nonetheless a beneficiary of advances 
in medical or vocational therapy or technology (related 
to the individual's ability to work), and 
"(ii)(I) the individual is now able to engage in sub-
stantial gainful activity, or 
"(II) if the individual is a widow or surviving divorced 
wife under section 202(e) or a widower or surviving 
divorced husband under section 202(f), the severity of 
his or her impairment or impairments is no longer 
deemed under regulations prescribed by the Secretary 
sufficient to preclude the individual from engaging in 
gainful activity, or 
"(B) demonstrates that— 
"(i) although the individual has not improved medi-
cally, he or she has undergone vocational therapy (re-
lated to the individual's ability to work), and 
"(ii) the requirements of subclause (I) or (II) of sub-
paragraph (A)(ii) are met; or 
"(3) substantial evidence which demonstrates that, as deter-
mined on the basis of new or improved diagnostic techniques or 
evaluations, the individual's impairment or combination of im-
pairments is not as disabling as it was considered to be at the 
time of the most recent prior decision that he or she was under 
a disability or continued to be under a disability, and that 
therefore— 
"(A) the individual is able to engage in substantial gain-
ful activity, or 
"(B) if the individual is a widow or surviving divorced 
wife under section 202(e) or a widower or surviving divorced 
husband under section 202(f), the severity of his or her 
impairment or impairments is not deemed under regula-
tions prescribed by the Secretary sufficient to preclude the 
individual from engaging in gainful activity; or 
"(4) substantial evidence (which may be evidence on the 
record at the time any prior determination of the entitlement to 
benefits based on disability was made, or newly obtained evi-
dence which relates to that determination) which demonstrates 
that a prior determination was in error. 
Nothing in this subsection shall be construed to require a determi-
nation that a recipient of benefits under this title or title XVIII 42 use 1395. 
based on an individual's disability is entitled to such benefits if the 
prior determination was fraudulently obtained or if the individual is 
engaged in substantial gainful activity (or gainful activity in the 
STAT. 1796 
PUBLIC LAW 98-460—OCT. 9, 1984 
case of a widow, surviving divorced wife, widower, or surviving 
divorced husband), cannot be located, or fails, without good cause, to 
cooperate in a review of the entitlement to such benefits or to follow 
prescribed treatment which would be expected to restore his or her 
ability to engage in substantial gainful activity (or gainful activity 
in the case of a widow, surviving divorced wife, widower, or surviv-
ing divorced husband). Any determination under this section shall 
be made on the basis of all the evidence available in the individual's 
case file, including new evidence concerning the individual's prior or 
current condition which is presented by the individual or secured by 
the Secretary. Any determination made under this section shall be 
made on the basis of the weight of the evidence and on a neutral 
basis with regard to the individual's condition, without any initial 
inference as to the presence or absence of disability being drawn 
from the fact that the individual has previously been determined to 
be disabled. For purposes of this subsection, a benefit under this title 
is based on an individual's disability if it is a disability insurance 
benefit, a child's, widow's, or widower's insurance benefit based on 
disability, or a mother's or father's insurance benefit based on the 
disability of the mother's or father's child who has attained age 16.". 
42 use 416. 
(b) Section 216(iX2XD) of such Act is amended by adding at the end 
Ante, p. 1794. 
thereof the following: "The provisions set forth in section 223(f) with 
respect to determinations of whether entitlement to benefits under 
42 use 1395. 
this title or title XVIII based on the disability of any individual is 
terminated (on the basis of a finding that the physical or mental 
impairment on the basis of which such benefits are provided has 
ceased, does not exist, or is not disabling) shall apply in the same 
manner and to the same extent with respect to determinations of 
whether a period of disability has ended (on the basis of a finding 
that the physical or mental impairment on the basis of which the 
finding of disability was made has ceased, does not exist, or is not 
disabling)." 
42 use 1382c. 
(c) Section 1614(a) of such Act is amended by adding at the end 
thereof the following new paragraph: 
"(5) A recipient of benefits based on disability under this title may 
be determined not to be entitled to such benefits on the basis of a 
finding that the physical or mental impairment on the basis of 
which such benefits are provided has ceased, does not exist, or is not 
disabling only if such finding is supported by— 
"(A) substantial evidence which demonstrates that— 
"(i) there has been any medical improvement in the 
individual's impairment or combination of impairments 
(other than medical improvement which is not related to 
the individugd's ability to work), and 
"(ii) the individual is now able to engage in substantial 
gainful activity; or 
"(B) substantial evidence (except in the case of an individual 
42 use I382h. 
eligible to receive benefits under section 1619) which— 
"(i) consists of new medical evidence and a new assess-
ment of the individual's residual functional capacity, and 
demonstrates that— 
"(I) although the individual has not improved medi-
cally, he or she is nonetheless a beneficiary of advances 
in medical or vocational therapy or technology (related 
to the individual's ability to work), and 
"(II) the individual is now able to engage in substan-
tial gainful activity, or 
PUBLIC LAW 98-460—OCT. 9, 1984 
98 STAT. 1797 
"(ii) demonstrates that— 
"(I) although the individual has not improved medi-
cally, he or she h£is undergone vocational therapy 
(related to the individual's ability to work), and 
"(II) the individual is now able to engage in substan-
tial gainful activity; or 
"(C) substantial evidence which demonstrates that, as deter-
mined on the basis of new or improved diagnostic techniques or 
evaluations, the individual's impairment or combination of 
impairments is not as disabling as it was considered to be at the 
time of the most recent prior decision that he or she was under 
a disability or continued to be under a disability, £uid that 
therefore the individual is able to engage in substantial gednful 
activity; or 
"(D) substantial evidence (which may be evidence on the 
record at the time any prior determination of the entitlement to 
benefits based on disability was made, or newly obtained evi-
dence which relates to that determination) which demonstrates 
that a prior determination was in error. 
Nothing in this paragraph shall be construed to require a determi-
nation that an individual receiving benefits based on disability 
under this title is entitled to such benefits if the prior determination 
was fraudulently obtained or if the individual is engaged in substan-
tial gainful activity, cannot be located, or fails, without good cause, 
to cooperate in a review of his or her entitlement or to follow 
prescribed treatment which would be expected to restore his or her 
ability to engage in substantial gainful activity. Any determination 
under this paragraph shall be made on the basis of all the evidence 
available in the individual's case file, including new evidence 
concerning the individual's prior or current condition which is pre-
sented by the individual or secured by the Secretary. Any determi-
nation made under this paragraph shall be made on the basis of the 
weight of the evidence and on a neutral basis with regard to the 
individual's condition, without any initial inference as to the pres-
ence or absence of disability being drawn from the fact that the 
individual has previously been determined to be disabled.". 
(dXl) The amendments made by this section shall apply only as Effective date. 
provided in this subsection. 
42 use 423 note. 
(2) The amendments made by this section shall apply to— 
(A) determinations made by the Secretary on or after the date 
of the enactment of this Act; 
(B) determinations with respect to which a final decision of 
the Secretary has not yet been made as of the date of the 
enactment of this Act and with respect to which a request for 
administrative review is made in conformity with the time 
limits, exhaustion requirements, and other provisions of section 
205 of the Social Security Act and regulations of the Secretary; 42 use 405. 
(C) determinations with respect to which a request for judicial 
review was pending on September 19, 1984, and which involve 
an individual litigant or a member of a class in a class action 
who is identified by name in such pending action on such date; 
and 
(D) determinations with respect to which a timely request for 
judicial review is or has been made by an individual litigant of a 
final decision of the Secretary made within 60 days prior to the 
date of the enactment of this Act. 
98 STAT. 1798 
PUBLIC LAW 98-460—OCT. 9, 1984 
In the case of determinations described in subparagraphs (C) and (D) 
in actions relating to medical improvement, the court shall remand 
such cases to the Secretary for review in accordance with the 
provisions of the Social Security Act as amended by this section. 
(3) In the case of a recipient of benefits under title II, XVI, or 
42 use 401, 
XVIII of the Social Security Act— 
1381,1395. 
(A) who has been determined not to be entitled to such 
benefits on the basis of a finding that the physical or mental 
impairment on the basis of which such benefits were provided 
has ceased, does not exist, or is not disabling, and 
(B) who was a member of a class certified on or before 
September 19, 1984, in a class action relating to medical im-
provement pending on September 19, 1984, but was not identi-
fied by name as a member of the class on such date, 
the court shall remand such case to the Secretary. The Secretary 
shall notify such individual by certified mail that he may request a 
review of the determination described in subparagraph (A) based on 
the provisions of this section and the provisions of the Social Secu-
42 use 1305. 
rity Act as amended by this section. Such notification shall specify 
that the individual must request such review within 120 days after 
the date on which such notification is received. If such request is 
made in a timely manner, the Secretary shall make a review of the 
determination described in subparagraph (A) in accordance with the 
provisions of this section and the provisions of the Social Security 
Act as amended by this section. The amendments made by this 
section shall apply with respect to such review, and the determina-
tion described in subparagraph (A) (and any redetermination result-
ing from such review) shall be subject to further administrative and 
judicial review, only if such request is made in a timely manner. 
(4) The decision by the Secretary on a case remanded by a court 
pursuant to this subsection shall be regarded as a new decision on 
the individual's claim for benefits, which supersedes the final deci-
sion of the Secretary. The new decision shall be subject to further 
administrative review and to judicial review only in conformity with 
the time limits, exhaustion requirements, and other provisions of 
42 use 405. 
section 205 of the Social Security Act and regulations issued by the 
Secretary in conformity with such section. 
(5) No class in a class action relating to medical improvement may 
be certified after September 19, 1984, if the class action seeks 
judicial review of a decision terminating entitlement (or a period of 
disability) made by the Secretary of Health and Human Services 
prior to September 19,1984. 
(6) For purposes of this subsection, the term "action relating to 
medical improvement" means an action raising the issue of whether 
an individual who has had his entitlement to benefits under title II, 
XVI, or XVIII of the Social Security Act based on disability termi-
nated (or period of disability ended) should not have had such 
entitlement terminated (or period of disability ended) without con-
sideration of whether there has been medical improvement in the 
condition of such individual (or another individual on whose disabil-
ity such entitlement is based) since the time of a prior determina-
tion that the individual was under a disability. 
42 use 423 note. 
(e) Any individual whose case is remanded to the Secretary pursu-
ant to subsection (d) or whose request for a review is made in a 
timely manner pursuant to subsection (d), may elect, in accordance 
42 use 423. 
with section 223(g) or 1631(a)(7) of the Social Security Act, to have 
Post, p. 1803. 
payments made ibeginning with the month in which he makes such 
PUBLIC LAW 98-460—OCT. 9, 1984 
98 STAT. 1799 
election, and ending as under such section 223(g) or 1631(a)(7). 42 use 423. 
Notwithstanding such section 223(g) or 1631(a)(7), such payments (if Post, p. 1803. 
elected)— 
(1) shall be made at least until an initial redetermination is 
made by the Secretary; and 
(2) shall begin with the payment for the month in which such 
individual makes such election. 
(0 In the case of any individual who is found to be under a 42 use 423 note. 
disability after a review required under this section, such individual 
shall be entitled to retroactive benefits beginning with benefits 
payable for the first month to which the most recent termination of 
benefits applied. 
(g) The Secretary of Health and Human Services shall prescribe Regulations. 
regulations necessary to implement the amendments made by this 42 use 423 note. 
section not later than 180 days after the date of the enactment of 
this Act. 
EVALUATION OF PAIN 
SEC. 3. (aXD Section 223(dX5) of the Social Security Act is amended 42 use 423. 
by inserting after the first sentence the following new sentences: 
"An individual's statement as to pain or other symptoms shall not 
alone be conclusive evidence of disability as defined in this section; 
there must be medical signs and findings, established by medically 
acceptable clinical or laboratory diagnostic techniques, which show 
the existence of a medical impairment that results from anatomical, 
physiological, or psychological abnormalities which could reason-
ably be expected to produce the pain or other symptoms alleged and 
which, when considered with all evidence required to be furnished 
under this paragraph (including statements of the individual or his 
physician as to the intensity and persistence of such pain or other 
symptoms which may reasonably be accepted as consistent with the 
medical signs and findings), would lead to a conclusion that the 
individual is under a disability. Objective medical evidence of pain 
or other symptoms established by medically acceptable clinical or 
laboratory techniques (for example, deteriorating nerve or muscle 
tissue) must be considered in reaching a conclusion as to whether 
the individual is under a disability.". 
(2) Section 1614(aX3XH) of such Act (as added by section 8 of this 
Act) is amended by striking out "section 221(h)" and inserting in 
lieu thereof "sections 221(h) and 223(dX5)". 
(3) The amendments made by paragraphs (1) and (2) shall apply to 
determinations made prior to January 1,1987. 
Oi)Xl) The Secretary of Health and Human Services shall appoint a 
Commission on the Evaluation of Pain (hereafter in this section 
referred to as the "Commission") to conduct a study concerning the 
evaluation of pain in determining under titles II and XVI of the 
Social Security Act whether an individual is under a disability. Such 
study sh£ill be conducted in consultation with the National Academy 
of Sciences. 
(2) The Commission shall consist of at least twelve experts, includ-
ing a significant representation from the field of medicine who are 
involved in the study of pain, and representation from the fields of 
law, administration of disability insurance programs, and other 
appropriate fields of expertise. 
(3) The Commission shall be appointed by the Secretary of Health 
and Human Services (without regard to the requirements of the 
Federal Advisory Committee Act) within 60 days after the date of 5 use app. 
Post, p. 1804. 
Effective date. 
42 u s e 423 note. 
eommission on 
the Evaluation 
of Pain. 
42 u s e 423 note. 
42 u s e 401, 
1381. 
98 STAT. 1800 
PUBLIC LAW 98-460—OCT. 9, 1984 
Termination 
date. 
42 use 423. 
42 u s e 416. 
42 use 1382c. 
the enactment of this Act. The Secretary shall from time to time 
appoint one of the members to serve as Chairman. The Commission 
shall meet as often as the Secretary deems necessary. 
(4) Members of the Commission shall be appointed without regard 
to the provisions of title 5, United States Coide, governing appoint-
ments in the competitive service. Members who are not employees of 
the United States, while attending meetings of the Commission or 
otherwise serving on the business of the Commission, shall be paid 
at a rate equal to the per diem equivalent of the rate provided for 
level IV of the Executive Schedule under section 5315 of title 5, 
United States Code, for each day, including traveltime, during 
which they are engaged in the actual performance of duties vested 
in the Commission. While engaged in the performance of such duties 
away from their homes or regular places of business they may be 
allowed travel expenses, including per diem in lieu of subsistence, as 
authorized by section 5703 of title 5, United States Code, for persons 
in the Government service employed intermittently. 
(5) The Commission may engage such technical assistance from 
individuals skilled in medical and other aspects of pain as may be 
necessary to carry out its functions. The Secretary shall make 
available to the Commission such secretarial, clerical, and other 
assistance and any pertinent data prepared by the Department of 
Health and Human Services as the Commission may require to 
carry out its functions. 
(6) The Secretary shall submit the results of the study under 
paragraph (1), together with any recommendations, to the Commit-
tee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate not later than December 31, 
1985. The Commission shall terminate at the time such results are 
submitted. 
MULTIPLE IMPAIRMENTS 
SEC. 4. (a)(1) Section 223(d)(2) of the Social Security Act is amended 
by adding at the end thereof the following new subparagraph: 
"(C) In determining whether an individual's physical or 
mental impairment or impairments are of a sufficient medical 
severity that such impairment or impairments could be the 
basis of eligibility under this section, the Secretary shall con-
sider the combined effect of all of the individual's impairments 
without regard to whether any such impairment, if considered 
separately, would be of such severity. If the Secretary does find 
a medically severe combination of impairments, the combined 
impact of the impairments shall be considered throughout the 
disability determination process.". 
(2) The third sentence of section 216(i)(l) of such Act is amended 
by inserting "(2XC)," after "(2KA),". 
O
t
>
) Section 1614(a)(3) of such Act is amended by adding at the end 
thereof the following new subparagraph: 
"(G) In determining whether an individual's physical or mental 
impairment or impairments are of a sufficient medical severity that 
such impairment or impairments could be the basis of eligibility 
under this section, the Secretary shall consider the combined effect 
of all of the individual's impairments without regard to whether any 
such impairment, if considered separately, would be of such se-
verity. If the Secretary does find a medically severe combination of 
impairments, the combined impact of the impairments shall be 
considered throughout the disability determination process.". 
PUBLIC LAW 98-460—OCT. 9, 1984 
98 STAT. 1801 
(c) The amendments made by this section shall apply with respect 
to determinations made on or after the first day of the first month 
beginning after 30 days after the date of the enactment of this Act. 
Effective date. 
42 u s e 423 note. 
MORATORIUM ON MENTAL IMPAIRMENT REVIEWS 
SEC. 5. (a) The Secretary of Health and Human Services (hereafter 42 use 421 note. 
in this section referred to as the "Secretary") shall revise the 
criteria embodied under the category "Mental Disorders" in the 
"Listing of Impairments" in effect on the date of the enactment of 
this Act under appendix 1 to subpart P of part 404 of title 20 of the 
Code of Federal Regulations. The revised criteria and listings, alone 
and in combination with assessments of the residual functional 
capacity of the individuals involved, shall be designed to realistically 
evaluate the ability of a mentally impaired individual to engage in 
substantial gainful activity in a competitive workplace environment. 
Regulations establishing such revised criteria and listings shall be Regulations, 
published no later than 120 days after the date of the enactment of 
this Act. 
(b)(1) Until such time as revised criteria have been established by 
regulation in accordance with subsection (a), no continuing eligibil-
ity review shall be carried out under section 221(i) of the Social 
Security Act, or under the corresponding requirements established 42 use 421. 
for disability determinations and reviews under title XVI of such 
Act, with respect to any individual previously determined to be 42 use 1381. 
under a disability by reason of a mental impairment, i
f
— 
(A) no initial decision on such review has been rendered with 
respect to such individual prior to the date of the enactment of 
this Act, or 
(B) an initial decision on such review was rendered with 
respect to such individual prior to the date of the enactment of 
this Act but a timely appeal from such decision was filed or was 
pending on or after June 7,1983. 
For purposes of this paragraph and subsection (c)(1) the term "con-
tinuing eligibility review , when used to refer to a review of a 
previous determination of disability, includes any reconsideration of 
or hearing on the initial decision rendered in such review as well as 
such initial decision itself, and any review by the Appeals Council of 
•
• '.-
the hearing decision. 
(2) Paragraph (1) shall not apply in any case where the Secretary 
determines that fraud was involved in the prior determination, or 
where an individual (other than an individual eligible to receive 
benefits under section 1619 of the Social Security Act) is determined 42 use I382h. 
by the Secretary to be engaged in substantial gainful activity (or 
j , 
gainful activity, in the case of a widow, surviving divorced wife, 
widower, or surviving divorced husband for purposes of section 
202 (e) and (f) of such Act). 
42 USC 402. 
(c)(1) Any initial determination that an individual is not under a 
disability by reason of a mental impairment and any determination 
that an individual is not under a disability by reason of a mental 
impairment in a reconsideration of or hearing on an initial disabil-
ity determination, made or held under title II or XVI of the Social 
Security Act after the date of the enactment of this Act and prior to 42 use 401, 
the date on which revised criteria are established by regulation in 1381. 
accordance with subsection (a), and any determination that an 
individual is not under a disability by reason of a mental impair-
ment made under or in accordance with title II or XVI of such Act 
98 STAT. 1802 
PUBLIC LAW 98-460—OCT. 9, 1984 
Claims. 
42 use 401, 
1381. 
in a reconsideration of, hearing on, review by the Appeals Council 
of, or judicial review of a decision rendered in any continuing 
eligibility review to which subsection (bXD applies, shall be redeter-
mined by the Secretary as soon as feasible after the date on which 
such criteria are so established, applying such revised criteria. 
(2) In the case of a redetermination under paragraph (1) of a prior 
action which found that an individual was not under a disability, if 
such individual is found on redetermination to be under a disability, 
such redetermination shall be applied as though it had been made at 
the time of such prior action. 
(3) Any individual with a mental impairment who was found to be 
not disabled pursuant to an initial disability determination or a 
continuing eligibility review between March 1, 1981, and the date of 
the enactment of this Act, and who reapplies for benefits under title 
II or XVI of the Social Security Act, may be determined to be under 
a disability during the period considered in the most recent prior 
determination. Any reapplication under this paragraph must be 
filed within one year after the date of the enactment of this Act, and 
benefits payable as a result of the preceding sentence shall be paid 
only on the basis of the reapplication. 
NOTICE OF RECONSIDERATION; PREREVIEW NOTICE; DEMONSTRATION 
PROJECTS 
42 use 421. 
SEC. 6. (a) Section 221(i) of the Social Security Act is amended by 
adding at the end thereof the following new paragraph: 
"(4) In any case in which the Secretary initiates a review under 
this subsection of the case of an individual who has been determined 
to be under a disability, the Secretary shall notify such individual of 
the nature of the review to be carried out, the possibility that such 
review could result in the termination of benefits, and the right of 
the individual to provide medical evidence with respect to such 
review.". 
42 use 1383b. 
(b) Section 1633 of such Act is amended by adding at the end 
thereof the following new subsection: 
"(c) In any case in which the Secretary initiates a review under 
this title, similar to the continuing disability reviews authorized for 
42 use 401. 
purposes of title II under section 221(i), the Secretary shall notify 
the individual whose case is to be reviewed in the same manner as 
Supra. 
required under section 221(i)(4).". 
42 use 421 note. 
(c) The Secretary shall institute a system of notification required 
by the amendments made by subsections (a) and (b) as soon as is 
practicable after the date of the enactment of this Act. 
42 use 421 note. 
(d) The Secretary of Health and Human Services shall, as soon as 
practicable after the date of the enactment of this Act, implement 
demonstration projects in which the opportunity for a personal 
appearance prior to a determination of ineligibility for persons 
reviewed under section 221(i) of the Social Security Act is substi-
tuted for the face to face evidentiary hearing required by section 
42 use 405. 
205(b)(2) of such Act. Such demonstration projects shall be conducted 
in not fewer than five States, and shall also include disability 
determinations with respect to individuals reviewed under title XVI 
42 use 1381. 
of such Act. The Secretary shall report to the Committee on Ways 
Report. 
^jjj Means of the House of Representatives and the Committee on 
Finance of the Senate concerning such demonstration projects, 
together with any recommendations, not later than December 31, 
1986. 
PUBLIC LAW 98-460—OCT. 9, 1984 
98 STAT. 1803 
(e) The Secretary of Health and Human Services shall, as soon as 42 USC 421 note. 
practicable after the date of the enactment of this Act, implement 
demonstration projects in which the opportunity for a personal 
appearance is provided the applicant prior to initial disability deter-
minations under subsections (a), (c), and (g) of section 221 of the 
Social Security Act, and prior to initial disability determinations on 42 use 421. 
applications for benefits under title XVI of such Act. Such demon- 42 usC 1381. 
stration projects shall be conducted in not fewer than five States. 
The Secretary shall report to the Committee on Ways and Means of Report, 
the House of Representatives and the Committee on Finance of the 
Senate concerning such demonstration projects, together with any 
recommendations, not later than December 31,1986. 
CONTINUATION OF BENEFITS DURING APPEAL 
SEC. 7. (aXD Section 223(gXl) of the Social Security Act is 42 use 423. 
amended— 
(A) in the matter following subparagraph (C), by striking out 
"and the payment of any other benefits under this Act based on 
such individual's wages and self-employment income (including 
benefits under title XVIII)," and inserting in lieu thereof ", the 42 use 1395. 
payment of any other benefits under this title based on such 
individual's wages and self-employment income, the payment of 
mother's or father's insurance benefits to such individual's 
mother or father based on the disability of such individual as a 
child who has attained age 16, and the payment of benefits 
under title XVIII based on such individual's disability,"; and 
(B) in clause (iii) by striking out "June 1984" and inserting in 
lieu thereof "June 1988". 
(2) Section 223(g)(3XB) of such Act is amended by striking out 97 Stat. 803. 
"December 7, 1983" and inserting in lieu thereof "January 1, 1988". 42 use 423. 
(b) Section 1631(a) of such Act is amended by adding at the end 42 use 1383. 
thereof the following new paragraph: 
"(7)(A) In any case where— 
"(i) an individual is a recipient of benefits based on disability 
or blindness under this title, 
"(ii) the physical or mental impairment on the basis of which 
such benefits are payable is found to have ceased, not to have 
existed, or to no longer be disabling, and as a consequence such 
individual is determined not to be entitled to such benefits, and 
t. 
"(iii) a timely request for review or for a hearing is pending 
with respect to the determination that he is not so entitled, 
such individual may elect (in such manner and form and within 
such time as the Secretary shall by regulations prescribe) to have 
the payment of such benefits continued for an additional period 
beginning with the first month beginning after the date of the 
enactment of this paragraph for which (under such determination) 
such benefits are no longer otherwise payable, and ending with the 
earlier of (I) the month preceding the month in which a decision is 
made after such a hearing, or (II) the month preceding the month in 
which no such request for review or a hearing is pending. 
"(B)(i) If an individual elects to have the payment of his benefits 
continued for an additional period under subparagraph (A), and the 
final decision of the Secretary affirms the determination that he is 
not entitled to such benefits, any benefits paid under this title 
pursuant to such election (for months in such additional period) 
98 STAT. 1804 
PUBLIC LAW 98-460—OCT. 9, 1984 
V 
shall be considered overpayments for all purposes of this title, 
except as otherwise provided in clause (ii). 
"(ii) If the Secretary determines that the individual's appeal of his 
termination of benefits was made in good faith, all of the benefits 
paid pursuant to such individual's election under subparagraph (A) 
shall be subject to waiver consideration under the provisions of 
subsection (bXD. 
"(C) The provisions of subparagraphs (A) and (B) shall apply with 
respect to determinations (that individuals are not entitled to bene-
fits) which are made on or after the date of the enactment of this 
paragraph, or prior to such date but only on the basis of a timely 
request for review or for a hearing.". 
Study. 
(c)(1) The Secretary of Health and Human Services shall, as soon 
42 use 423 note, as practicable after the date of the enactment of this Act, conduct a 
study concerning the effect which the enactment and continued 
42 use 423. 
operation of section 223(g) of the Social Security Act is having on 
expenditures from the Federal Old-Age and Survivors Insurance 
Trust Fund, the Federal Disability Insurance Trust Fund, the Fed-
eral Hospital Insurance Trust Fund, and the Federal Supplementary 
Medical Insurance Trust Fund, and the rate of appeals to adminis-
trative law judges of unfavorable determinations relating to disabil-
ity or periods of disability. 
(2) The Secretary shall submit the results of the study under 
paragraph (1), together with any recommendations, to the Commit-
tee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate not later than July 1, 1986. 
QUAUnCATIONS OF MEDICAL PROFESSIONALS EVALUATING MENTAL 
IMPAIRMENTS 
42 use 421. 
SEC. 8. (a) Section 221 of the Social Security Act is amended by 
inserting after subsection (g) the following new subsection: 
"(h) An initial determination under subsection (a), (c), (g), or (i) 
that an individual is not under a disability, in any case where there 
is evidence which indicates the existence of a mental impairment, 
shall be made only if the Secretary has made every reasonable effort 
to ensure that a qualified psychiatrist or psychologist has completed 
the medical portion of the case review and any applicable residual 
functional capacity assessment.". 
Ante, p. 1800. 
(b) Section 1614(a)(3) of such Act (as amended by section 4 of this 
Act) is further amended by adding at the end thereof the following 
new subparagraph: 
"(H) In making determinations with respect to disability under 
Supra. 
this title, the provisions of section 221(h) shall apply in the same 
42 use 401. 
manner as they apply to determinations of disability under title II.". 
Effective date. 
(c) The amendments made by this section shall apply to determi-
42 use 421 note, nations made after 60 days after the date of the enactment of this 
Act. 
CONSULTATIVE EXAMINATIONS; MEDICAL EVIDENCE 
42 use 421. 
SEC. 9. (aXD Section 221 of the Social Security Act is amended by 
adding at the end thereof the following new subsection: 
"(j) The Secretary shall prescribe regulations which set forth, in 
detail— 
"(1) the standards to be utilized by State disability determina-
tion services and Federal personnel in determining when a 
PUBLIC LAW 98-460—OCT. 9, 1984 
98 STAT. 1805 
consultative examination should be obtained in connection with 
disability determinations; 
"(2) standards for the type of referral to be made; and 
"(3) procedures by which the Secretary will monitor both the 
referral processes used and the product of professionals to 
whom cases are referred. 
Nothing in this subsection shall be construed to preclude the issu-
ance, in accordance with section 553(b)(A) of title 5, United States 
Code, of interpretive rules, general statements of policy, and rules of 
agency organization relating to consultative examinations if such 
rules and statements are consistent with such regulations.". 
(2) The Secretary of Health and Human Services shall prescribe 
regulations required under section 221(j) of the Social Security Act 
not later than 180 days after the date of the enactment of this Act. 
Ot))(l) Section 223(d)(5) of the Social Security Act is amended by 
inserting "(A)" after "(5)" and by adding at the end thereof the 
following new subparagraph: 
"(B) In making any determination with respect to whether an 
individual is under a disability or continues to be under a disability, 
the Secretary shall consider all evidence available in such individ-
ual's case record, and shall develop a complete medical history of at 
least the preceding twelve months for any case in which a determi-
nation is made that the individual is not under a disability. In 
making any determination the Secretary shall make every reason-
able effort to obtain from the individual's treating physician (or 
other treating health care provider) all* medical evidence, including 
diagnostic tests, necessary in order to properly make such determi-
nation, prior to evaluating medical evidence obtained from any other 
source on a consultative basis.". 
(2) The amendments made by this subsection shall apply to deter-
minations made on or after the date of the enactment of this Act. 
Regulations. 
42 u s e 421 note. 
Ante, p. 1804. 
42 u s e 423. 
Effective date. 
42 u s e 423 note. 
UNIFORM STANDARDS 
SEC. 10. (a) Section 221 of the Social Security Act (as amended by 42 use 421. 
section 9 of this Act) is further amended by adding at the end 
thereof the following new subsection: 
"(k)(l) The Secretary shall establish by regulation uniform stand-
ards which shall be applied at all levels of determination, review, 
and adjudication in determining whether individuals are under 
disabilities as defined in section 216(i) or 223(d). 
42 use 416, 423. 
"(2) Regulations promulgated under paragraph (1) shall be subject 
to the rulemaking procedures established under section 553 of title 
5, United States Code.". 
O
b
) Section 1614(aX3XH) of such Act (as added by section 8 of this Ante, p. 1804. 
Act and amended by section 3 of this Act) is further amended by 
striking out "sections 221(h) and 223(dX5)" and inserting in lieu 
thereof "sections 221(h), 221(k), and 223(dX5)". 
PAYMENT OF. COSTS OF REHABILITATION SERVICES 
SEC. 11. (aXD The first sentence of section 222(dXl) of the Social 42 use 422. 
Security Act is amended— 
(A) by striking out "into substantial gainful activity"; and 
(B) by striking out "which result in their performance of 
substantial gainful activity which lasts for a continuous period 
' 
of nine months" and inserting in lieu thereof the following: "(i) 
98 STAT. 1806 
PUBLIC LAW 98-460—OCT. 9, 1984 
in cases where the furnishing of such services results in the 
performance by such individuals of substantial gainful activity 
for a continuous period of nine months, (ii) in cases where such 
42 use 425. 
individuals receive benefits as a result of section 225(b) (except 
that no reimbursement under this paragraph shall be made for 
services furnished to any individual receiving such benefits for 
any period after the close of such individual's ninth consecutive 
month of substantial gainful activity or the close of the month 
in which his or her entitlement to such benefits ceases, which-
ever first occurs), and (iii) in cases where such individuals, 
without good cause, refuse to continue to accept vocational 
rehabilitation services or fail to cooperate in such a manner as 
to preclude their successful rehabilitation". 
Ante, p. 1805. 
(2) The second sentence of section 222(d)(1) of such Act is amended 
by striking out "of such individuals to substantial gainful activity" 
and inserting in lieu thereof "of an individual to substantial gainful 
activity, the determination that an individual, without good cause, 
refused to continue to accept vocational rehabilitation services or 
failed to cooperate in such a manner as to preclude successful 
rehabilitation,". 
42 use I382d. 
(b)(1) The first sentence of section 1615(d) of such Act is amended 
by striking out "if such services result in their performance of 
substantial gainful activity which lasts for a continuous period of 
nine months" and inserting in lieu thereof the following: "(1) in 
cases where the furnishing of such services results in the perform-
ance by such individuals of substantial gainful activity for a continu-
ous period of nine months, (2) in cases where such individuals 
42 use 1383. 
receive benefits as a result of section 1631(aX6) (except that no 
reimbursement under this subsection shall be made for services 
, J,., 
, 
furnished to any individual receiving such benefits for any period 
after the close of such individual's ninth consecutive month of 
substantial gainful activity or the close of the month with which his 
or her entitlement to such benefits ceases, whichever first occurs), 
.
^ 
and (3) in cases where such individuals, without good cause, refuse 
to continue to accept vocational rehabilitation services or fail to 
cooperate in such a manner as to preclude their successful rehabili-
tation". 
(2) The second sentence of section 1615(d) of such Act is amended 
by inserting after "The determination" the following: "that the 
! 
. 
vocational rehabilitation services contributed to the successful 
return of an individual to substantial gainful activity, the determi-
nation that an individual, without good cause, refused to continue to 
accept vocational rehabilitation services or failed to cooperate in 
such a manner as to preclude successful rehabilitation, and the 
determination". 
Effective date. 
(c) The amendments made by this section shall apply with respect 
42 use 422 note, to individuals who receive benefits as a result of section 225(b) or 
section 1631(a)(6) of the Social Security Act, or who refuse to con-
tinue to accept rehabilitation services or fail to cooperate in an 
approved vocational rehabilitation program, in or after the first 
y 
;,; 
month following the month in which this Act is enacted. 
ADVISORY COUNCIL STUDY 
42 use 907 note. 
SEC. 12. (a) The Secretary of Health and Human Services shall 
appoint the members of the next Advisory Council on Social 
PUBLIC LAW 98-460—OCT. 9, 1984 
98 STAT. 1807 
Security pursuant to section 706 of the Social Security Act prior to 42 use 907. 
June 1,1985. 
0)X1) The Advisory Council shall include in its review and report, Report. 
studies and recommendations with respect to the medical and voca-
tional aspects of disability, including studies and recommendations 
relating to— 
(A) the effectiveness of vocational rehabilitation programs for 
recipients of disability insurance benefits or supplemental secu-
rity income benefits; 
(B) the question of using specialists for completing medical 
and vocational evaluations at the State agency level in the 
disability determination process, including the question of 
requiring, in cases involving impairments other than mental 
impairments, that the medical portion of each case review (as 
well as any applicable assessment of residual functional capac-
ity) be completed by an appropriate medical specialist employed 
by the State agency before any determination can be made with 
respect to the impairment involved; 
(C) alternative approaches to work evaluation in the case of 
applicants for benefits based on disability under title XVI and 42 use i38i. 
' 
recipients of such benefits undergoing reviews of their cases, 
including immediate referral of any such applicant or recipient 
to a vocational rehabilitation agency for services at the same 
time he or she is referred to the appropriate State agency for a 
disability determination; 
(D) the feasibility and appropriateness of providing work 
evaluation stipends for applicants for and recipients of benefits 
based on disability under title XVI in cases where extended 
work evaluation is needed prior to the final determination of 
their eligibility for such benefits or for further rehabilitation 
and related services; 
(E) the standards, policies, and procedures which are applied 
or used by the Secretary of Health and Human Services with 
respect to work evaluations in order to determine whether such 
standards, policies, and procedures will provide appropriate 
screening criteria for work evaluation referrals in the case of 
applicants for and recipients of benefits based on disability 
under title XVI; and 
(F) possible criteria for assessing the probability that an 
applicant for or recipient of benefits based on disability under 
title XVI will benefit from rehabilitation services, taking into 
consideration not only whether the individual involved will be 
able after rehabilitation to engage in substantial gainful ac-
tivity but also whether rehabilitation services can reasonably be 
expected to improve the individual's functioning so that he or 
she will be able to live independently or work in a sheltered 
environment. 
(2) For purposes of this subsection, "work evaluation" includes 
(with respect to any individual) a determination of^ 
(A) such individual's skills, 
(B)the work activities or types of work activity for which such 
* 
individual's skills are insufficient or inadequate, 
(C) the work activities or types of work activity for which such 
individual might potentially be trained or rehabilitated, 
(D) the length of time for which such individual is capable of 
sustaining work (including, in the case of the mentally 
98 STAT. 1808 
PUBLIC LAW 98-460—OCT. 9, 1984 
Report. 
impaired, the ability to cope with the stress of competitive 
work), and 
(E) any modifications which may be necessary, in work activi-
ties for which such individual might be trained or rehabilitated, 
in order to enable him or her to perform such activities. 
(c) The Advisory Council may convene task forces of experts to 
consider and comment upon specialized issues. 
QUAUFYING EXPERIENCE FOR APPOINTMENT OF CERTAIN STAFF 
ATTORNEYS TO ADMINISTRATIVE LAW JUDGE POSITIONS 
SEC. 13. The Secretary of Health and Human Services shall, 
within 120 days after the date of enactment of this Act, submit a 
report to the Committee on Ways and Means of the House of 
Representatives and the Committee on Finance of the Senate on 
actions taken by the Secretary to establish positions which enable 
staff attorneys to gain the qualifying experience and quality of 
experience necessary to compete for the position of administrative 
law judge under section 3105 of title 5, United States Code. 
42 u s e 1382h 
note. 
42 u s e 1382h. 
Regulations. 
42 u s e 421 note. 
42 u s e 421. 
SUPPLEMENTAL SECURITY INCOME BENEFITS FOR INDIVIDUALS WHO 
PERFORM SUBSTANTIAL GAINFUL ACTIVITY DESPITE SEVERE MEDICAL 
IMPAIRMENT 
SEC. 14. (a) Section 201(d) of the Social Security Disability Amend-
ments of 1980 is amended by striking out "shall remain in effect 
only for a period of three years after such effective date" and 
inserting in lieu thereof "shall remain in effect only through 
June 30,1987". 
O
t
)
) Section 1619 of the Social Security Act is amended by adding at 
the end thereof the following new subsection: 
"(c) The Secretary of Health and Human Services and the Secre-
tary of Education shall jointly develop and disseminate information, 
and establish training programs for staff personnel, with respect to 
the potential availability of benefits and services for disabled indi-
viduals under the provisions of this section. The Secretary of Health 
and Human Services shall provide such information to individuals 
who are applicants for and recipients of benefits based on disability 
under this title and shall conduct such programs for the staffs of the 
district offices of the Social Security Administration. The Secretary 
of Education shall conduct such programs for the staffs of the State 
Vocational Rehabilitation agencies, and in cooperation with such 
agencies shall also provide such information to other appropriate 
individuals and to public and private organizations and agencies 
which are concerned with rehabilitation and social services or which 
represent the disabled.". 
,' 
' 
FREQUENCY OF CONTINUING EUGIBILITY REVIEWS 
SEC. 15. The Secretary of Health and Human Services shall 
promulgate final regulations, within 180 days after the date of the 
enactment of this Act, which establish the standards to be used by 
the Secretary in determining the frequency of reviews under section 
221(i) of the Social Security Act. Until such regulations have been 
issued as final regulations, no individual may be reviewed more 
than once under section 221(i) of the Social Security Act. 
PUBLIC LAW 98-460—OCT. 9, 1984 
98 STAT. 1809 
DETERMINATION AND MONITORING OF NEED FOR REPRESENTATIVE 
PAYEE 
SEC. 16. (a) Section 205(j) of the Social Security Act is amended by 42 use 405. 
inserting "(1)" after "(j) and by adding at the end thereof the 
following new paragraphs: 
"(2) Any certification made under paragraph (1) for payment to a 
person other than the individual entitled to such payment must be 
made on the basis of an investigation, carried out either prior to 
such certification or within forty-five days after such certification, 
and on the basis of adequate evidence that such certification is in 
the interest of the individual entitled to such payment (as deter-
mined by the Secretary in regulations). The Secretary shall ensure 
that such certifications are adequately reviewed. 
"(3)(A) In any case where payment under this title is made to a 
person other than the individual entitled to such payment, the 
Secretary shall establish a system of accountability monitoring 
whereby such person shall report not less often than annually with 
respect to the use of such payments. The Secretary shall establish 
and implement statistically valid procedures for reviewing such 
reports in order to identify instances in which such persons are not 
properly using such payments. 
"(B) Subparagraph (A) shall not apply in any case where the other 
person to whom such payment is made is a parent or spouse of the 
individual entitled to such payment who lives in the same household 
as such individual. The Secretary shall require such parent or 
spouse to verify on a periodic basis that such parent or spouse 
continues to live in the same household as such individual. 
"(C) Subparagraph (A) shall not apply in any case where the other 
person to whom such payment is made is a State institution. In such 
cases, the Secretary shall establish a system of accountability moni-
toring for institutions in each State. 
"(D) Subparagraph (A) shall not apply in any case where the 
individual entitled to such payment is a resident of a Federal 
institution and the other person to whom such payment is made is 
the institution. 
"(E) Notwithstanding subparagraphs (A), (B), (C), and (D), the 
Secretary may require a report at any time from any person receiv-
ing payments on behalf of another, if the Secretary has reason to 
believe that the person receiving such payments is misusing such 
pavments. 
(4XA) The Secretary shall make an initial report to each House of Report. 
the Congress on the implementation of paragraphs (2) and (3) within 
270 days after the date of the enactment of this paragraph. 
"(B) The Secretary shall include as a part of the annual report 
required under section 704, information with respect to the imple- 42 use 904. 
mentation of paragraphs (2) and (3), including the number of cases 
in which the payee was changed, the number of cases discovered 
where there has been a misuse of funds, how any such cases were 
dealt with by the Secretary, the final disposition of such cases, 
including any criminal penalties imposed, and such other informa-
tion as the Secretary determines to be appropriate.". 
(b) Section 1631(a)(2) of such Act is amended by inserting "(A)" 42 use 1383. 
after "(2)" and by adding at the end thereof the following new 
subparagraphs: 
"(B) Any determination made under subparagraph (A) that pay-
ment should be made to a person other than the individual or spouse 
98 STAT. 1810 
PUBLIC LAW 98-460—OCT. 9, 1984 
entitled to such payment must be made on the basis of an investiga-
tion, carried out either prior to such determination or within forty-
five days after such determination, and on the basis of adequate 
- 
evidence that such determination is in the interest of the individual 
or spouse entitled to such payment (as determined by the Secretary 
in regulations). The Secretary shall ensure that such determinations 
are adequately reviewed. 
"(CXi) In any case where payment is made under this title to a 
person other than the individual or spouse entitled to such payment, 
the Secretary shall establish a system of accountability monitoring 
whereby such person shall report not less often than annually with 
respect to the use of such payments. The Secretary shall establish 
and implement statistically valid procedures for reviewing such 
reports in order to identify instances in which such persons are not 
properly using such payments. 
"(ii) Clause (i) shall not apply in any C£ise where the other person 
to whom such payment is made is a parent or spouse of the 
individual entitled to such payment who lives in the same household 
as such individual. The Secretary shall require such parent or 
spouse to verify on a periodic basis that such parent or spouse 
continues to live in the same household as such individual. 
"(iii) Clause (i) shall not apply in any case where the other person 
to whom such payment is made is a State institution. In such cases, 
the Secretary shall establish a system of accountability monitoring 
for institutions in each State. 
"(iv) Clause (i) shall not apply in any case where the individual 
entitled to such payment is a resident of a Federal institution and 
the other person to whom such pa3mient is made is the institution. 
"(v) Notwithstanding clauses (i), (ii), (iii), and (iv), the Secretary 
may require a report at any time from any person receiving pay-
ments on behalf of another, if the Secretary has reason to believe 
that the person receiving such payments is misusing such pa3mients. 
Report. 
"(D) The Secretary shall make an initial report to each House of 
the Congress on the implementation of subparagraphs (B) and (C) 
within 270 days after the date of the enactment of this subpara-
graph. The Secretary shall include in the annual report required 
42 use 904. 
under section 704, information with respect to the implementation 
of subparagraphs (B) and (C), including the same factors as are 
required to be included in the Secretary's report under section 
Ante, p. 1809. 
2050X4XB).". 
42 use 1383a. 
(cXl) Section 1632 of the Social Security Act is amended by 
inserting "(a)" after "Sec. 1632." £uid by adding at the end thereof 
the following new subsection: 
"(bXD Any person or other entity who is convicted of a violation of 
any of the provisions of paragraphs (1) through (4) of subsection (a), 
if such violation is committed by such person or entity in his role as, 
42 use 1383. 
or in applying to become, a payee under section 1631(aX2) on behalf 
of another individual (other than such person's eligible spouse), in 
lieu of the penalty set forth in subsection (a)— 
"(A) upon his first such conviction, shall be guilty of a misde-
meanor and shall be fined not more than $5,000 or imprisoned 
for not more than one year, or both; and 
"(B) upon his second or any subsequent such conviction, shall 
be guilty of a felony and shall be fined not more than $25,000 or 
imprisoned for not more than five years, or both. 
"(2) In any case in which the court determines that a violation 
described in paragraph (1) includes a willful misuse of funds by such 
PUBLIC LAW 98-460—OCT. 9, 1984 
98 STAT. 1811 
person or entity, the court may also require that full or partial 
restitution of such funds be made to the individual for whom such 
person or entity was the certified payee. 
"(3) Any person or entity convicted of a felony under this section 
or under section 208 may not be certified as a payee under section 42 use 408. 
1631(a)(2).". 
Ante, p. mo. 
(2) Section 208 of such Act is amended by adding at the end 42 use 408. 
thereof the following unnumbered paragraphs: 
"Any person or other entity who is convicted of a violation of any 
of the provisions of this section, if such violation is committed by 
such person or entity in his role as, or in applying to become, a 
certified payee under section 205(j) on behalf of another individual Ante, p. 1809. 
(other than such person's spouse), upon his second or any subse-
quent such conviction shall, in lieu of the penalty set forth in the 
preceding provisions of this section, be guilty of a felony and shall be 
fined not more than $25,000 or imprisoned for not more than five 
years, or both. In the case of any violation described in the preceding 
sentence, including a first such violation, if the court determines 
that such violation includes a willful misuse of funds by such person 
or entity, the court may also require that full or partial restitution 
of such funds be made to the individual for whom such person or 
entity was the certified payee. 
"Any individual or entity convicted of a felony under this section 
or under section 1632(b) may not be certified as a payee under Ante, p. 1810. 
section 205(j).". 
(d) The amendments made by this section shall become effective Effective date. 
on the date of the enactment of this Act, and, in the case of the 42 use 405 note. 
amendments made by subsection (c), shall apply with respect to 
violations occurring on or after such date. 
MEASURES TO IMPROVE COMPLIANCE WITH FEDERAL LAW 
SEC. 17. (a)(1) Section 221(b)(1) of the Social Security Act is 42 use 421. 
amended to read as follows: 
"(b)(1)(A) Upon receiving information indicating that a State 
agency may be substantially failing to make disability determina-
tions in a manner consistent with regulations and other written 
guidelines issued by the Secretary, the Secretary shall immediately 
conduct an investigation and, within 21 days after the date on which 
such information is received, shall make a preliminary finding with 
respect to whether such agency is in substantial compliance with 
such regulations and guidelines. If the Secretary finds that an 
agency is not in substantial compliance with such regulations and 
guidelines, the Secretary shall, on the date such finding is made, 
notify such agency of such finding and request assurances that such 
, . 
agency will promptly comply with such regulations and guidelines. 
" 
' •' 
"(B)(i) Any agency notified of a preliminary finding made pursu-
ant to subparagraph (A) shall have 21 days from the date on which 
such finding was made to provide the assurances described in 
subparagraph (A). 
"(ii) The Secretary shall monitor the compliance with such regula-
tions and guidelines of any agency providing such assurances in 
accordance with clause (i) for the 30-day period beginning on the day 
after the date on which such assurances have been provided. 
"(C) If the Secretary determines that an agency monitored in 
accordance with clause (ii) of subparagraph (B) has not substantially 
complied with such regulations and guidelines during the period for 
98 STAT. 1812 
' PUBLIC LAW 98-460—OCT. 9, 1984 
which such agency was monitored, or if an agency notified pursuant 
to subparagraph (A) fails to provide assurances in accordance with 
clause (i) of subparagraph (B), the Secretary shall, within 60 days 
after the date on which a preliminary finding was made with 
respect to such agency under subparagraph (A), (or within 90 days 
after such date, if, at the discretion of the Secretary, such agency is 
granted a hearing by the Secretary on the issue of the noncompli-
ance of such agency) make a final determination as to whether such 
agency is substantially complying with such regulations and guide-
lines. Such determination shall not be subject to judicial review. 
"(D)(i) If the Secretary makes a final determination pursuant to 
subparagraph (C) with respect to any agency that the agency is not 
substantially complying with such regulations and guidelines, the 
Secretary shall, as soon as possible but not later than 180 days after 
the date of such final determination, make the disability determina-
tions referred to in subsection (a)(1), complying with the require-
ments of paragraph (3) to the extent that such compliance is possible 
within such 180-day period. In order to carry out this subparagraph, 
the Secretary shall, as the Secretary finds necessary, exceed any 
applicable personnel ceilings and waive any applicable hiring 
restrictions. In addition, to the extent feasible within the 180-day 
period after the final determination, the Secretary, in conjunction 
with the Secretary of Labor, shall assure the statutory protections of 
State agency employees not hired by the Secretary. 
"(ii) During the 180-day period specified in clause (i), the Secretary 
shall take such actions as may be necessary to assure that any case 
with respect to which a determination referred to in subsection (a)(1) 
was made by an agency, during the period for which such agency 
was not in substantial compliance with the applicable regulations 
and guidelines, was decided in accordance with such regulations and 
guidelines.". 
42 use 421. 
(2) Section 221(a)(1) of such Act is amended by striking out "sub-
section (b)(1)" and inserting in lieu thereof "subsection (b)(lXC)". 
(3)(A) Section 221(b)(3)(A) of such Act is amended by striking out 
"The Secretary" and inserting in lieu thereof "Except as provided in 
subparagraph (D)(i) of paragraph (1), the Secretary". 
(B) Section 221(b)(3)(B) of such Act is amended by striking out 
"The Secretary" and inserting in lieu thereof "Except as provided in 
subparagraph (D)(i) of paragraph (1), the Secretary". 
(4) Section 221(d) of such Act is amended by striking out "Any 
individual" and inserting in lieu thereof "Except as provided in 
subsection Ot))(l)(D), any individual". 
Effective date. 
O
t
>
) The amendments made by subsection (a) of this section shall 
42 use 421 note, become effective on the date of the enactment of this Act and shall 
expire on December 31, 1987. The provisions of the Social Security 
42 use 1305. 
Act amended by subsection (a) of this section (as such provisions 
were in effect immediately before the date of the enactment of this 
Act) shall be effective after December 31,1987. 
PUBLIC LAW 98-460—OCT. 9, 1984 
98 STAT. 1813 
SEPARABILITY 
SEC. 18. If any provision of this Act, or the application thereof to 42 use 1303 
any person or circumstance, is held invalid, the remainder of this ^°^-
Act and the application of such provision to other persons or circum-
stances shall not be affected thereby. 
Approved October 9, 1984. 
LEGISLATIVE HISTORY—H.R. 3755 (S. 476): 
HOUSE REPORTS: No. 98-618 (Comm. on Ways and Means) and 
No. 98-1039 (Comm. of Conference). 
SENATE REPORT No. 98-466 accompanying S. 476 (Comm. on Finance). 
CONGRESSIONAL RECORD, Vol. 130 (1984): 
Mar. 27, considered and passed House. 
May 22, considered and passed Senate, amended, in lieu of S. 476. 
Sept. 19, House and Senate agreed to Conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 20, No. 41 (1984): 
Oct. 9, Presidential statement.