Highway Revenue Act of 1981
PL 97-123 (H.R.4331), enacted 12/29/1981

PUBLIC LAW 97-123—DEC. 29, 1981 
95 STAT. 1659 
Public Law 97-123 
97th Congress 
An Act 
To amend the Omnibus Reconciliation Act of 1981 to restore minimum benefits 
under the Social Security Act. 
Be it enacted by the Senate and House of Representatives of the 
United States of 
America in Congress assembled, 
INTERFUND BORROWING 
Dec. 29, 1981 
[H.R. 4331] 
Social Security 
Act, 
amendment. 
42 use 401. 
SECTION 1. (a) Section 201 of the Social Security Act is amended by 
adding at the end thereof 
the following new subsection: 
"(1)(1) If at any time prior to January 1983 the Managing Trustee 
determines that 
borrowmg authorized under this subsection is appro-
priate in order to best meet the need for financing the benefit 
payments from the Federal Old-Age and Survivors Insurance Trust 
Fimd or the Federal Disability Insurance Trust Fund, the Managing 
Trustee may borrow such amounts as he determines to be appropri-
ate from the other such Trust Fund, or from the Federal Hospital 
Insurance Trust Fund established under section 1817, for transfer to 42 use 1
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and deposit in the Trust Fund whose need for financing is involved. 
"(2) m anv case where a loan has been made to a Trust Fund under interest. 
E
aragraph (1), there shall be transferred from time to time, from the 
orrowing Trust Fund to the lending Trust Fund, interest with 
respect to the unrepaid balance of 
such loan at a rate equal to the rate 
which the lending Trust Fund would earn on the amount involved if 
the loan were an investment under subsection (d). 
"(3) If in any month after a loan has been made to a Trust Fund Repayments. 
under paragraph (1), the Managing Trustee determines that the 
assets of 
such Trust Fund are sufficient to permit repayment of all or 
part of any loans made to such Fund under paragraph (1), he shall 
make such repayments as he determines to be appropriate. 
"(4) The Board of Trustees shall make a timely report to the 
Congress of any amounts transferred (including interest payments) 
under this subsection.". 
(b) Section 1817 of 
such Act is amended by adding at the end thereof 
the following new subsection: 
"OKI) ^ ^* 8^y ti°i6 prior to January 1983 the Managing Trustee 
determines that borrowing authorized under this subsection is appro-
priate in order to best meet the need for financing the benefit 
Payments from the Federal Hospital Insurance Trust Fund, the 
lanaging Trustee may borrow such amounts as he determines to be 
appr(^riate from either the Federal Old-Age and Survivors Insur-
ance Trust Fund or the Federal Disability Inisurance Trust Fund for 
transfer to and deposit in the Federal Hospital Insurance Trust Fund. 
"(2) In any case where a loan has been made to the Federal Hospital interest 
Insurance Trust Fund under paragraph (1), there shall be transferred 
from time to time, from such Trust Fund to the lending Trust Fund, 
interest with respect to the unrepaid balance of such loan at a rate 
equal to the rate which the lendmg Trust Fund would earn on the 
amount involved if the loan were an investment under subsection (c). 
Report to 
eongress. 
42 use 13951. 
95 STAT. 1660 
PUBLIC LAW 97-123—DEC. 29, 1981 
Repayments. 
Report to 
Congress. 
Effective date. 
42 u s e 401 note. 
"(3) If in any month after a loan has been made to the Federal 
Hospital Insurance Trust Fund under paragraph (1), the Managing 
Trustee determines that the assets of such Trust Fund are sufficient 
to permit repayment of all or part of any loans made to such Fund 
under paragraph (1), he shall make such repayments as he deter-
mines to be appropriate. 
"(4) The Board of Trustees shall make a timely report to the 
Congress of any amounts transferred (including interest payments) 
under this subsection.". 
(c) The amendments made by this section shall be effective on the 
date of 
the enactment of 
this Act. 
CONTINUATION OF MINIMUM BENEFITS FOR EXISTING BENEFICIARIES 
SEC. 2. (a)(1) Section 215(a)(5) of 
the Social Security Act (as amended 
Ante, p. 830. 
by scction 22()1 of the Omnibus Budget Reconciliation Act of 1981) is 
further amended— 
(A) in the first sentence, by striking out ", and the table for 
determining primary insurance amounts and maximum family 
benefits contained m this section in December 1978 shall be 
modified as specified in paragraph (6)"; and 
(B) in the last sentence, by striking out ", modified by the 
application of 
paragraph (6),'*-
(2) Section 215(a)(6)(A) of the Social Security Act (as added by 
section 2201 of the Omnibus Budget Reconciliation Act of 1981) is 
amended by striking out "The table of benefits" and all that follows 
down through "shall be extended" and inserting in lieu thereof the 
following "In applying the table of 
benefits in effect in December 1978 
under this section for purposes of the last sentence of paragraph (4), 
such table, revised as provided by subsection (i), as applicable, shall be 
extended". 
C
b
) Section 215(f)(7) of the Social Security Act (as amended by 
section 2201 of the Omnibus Budget Reconciliation Act of 1981) is 
further amended— 
(1) by striking out the period at the end of the second sentence 
and inserting in lieu thereof ", and (effective January 1982) the 
recomputation shall be modified by the application of subsection 
(a)(6) where applicable."; and 
(2) by striking out the last sentence. 
(c) Section 215(i)(2)(A)(iii) of the Social Security Act (as amended by 
section 2201 of the Omnibus Budget Reconciliation Act of 1981) is 
further amended by inserting after "this title" the following: "and, 
with respect to a primary insurance amount determined! under 
subsection (a)(l)(C)(i)(I) in the case of an individual to whom that 
subsection (as in effect in December 1981) applied, subject to the 
provisions of subsection (a)(l)(C)(i) and clauses (iv) and (v) of this 
subparagraph (as then in effect)". 
(d) Section 215(iX4) of the Social Securitj^ Act (as amended by 
section 2201 of the Omnibus Budget Reconciliation Act of 1981) is 
further amended by striking out , modified by the application of 
subsection (a)(6)," each place it appears. 
(e) Section 202(q) of the Social Security Act (as amended by section 
Ante, p. 830. 
2201 of the Omuibus Budget Reconciliation Act of 1981) is further 
amended— 
(1) in paragraph (4), by striking out "changed" and "change" 
each place they appear and inserting in lieu thereof "increased" 
and 'Increase , respectively; and 
PUBLIC LAW 97-123—DEC. 29, 1981 
95 STAT. 1661 
(2) in paragraph (10), by striking out "changed", "change", and 
"changes" each place they appear and inserting in lieu thereof 
"increased", "increase", and increases", respectively. 
(f) Section 203(a)(8) of the Social Security Act (as amended by 
section 2201 of the Omnibus Budget Reconciliation Act of 1981) is Ante, p. 830. 
further amended by striking out , modified by the application of 
section 215(aX6),". 
(g) Section 2170i)Xl) of the Social Security Act (as amended by 
section 2201 of the Omnibus Budget Reconciliation Act of 1981) is 
further amended by striking out , and as modified by the applica-
tion of 
section 215(aX6),". 
(h) Section 1622 of the Social Security Act (as added by section 2201 Repeal. 
of the Omnibus Budget Reconciliation Act of 1981) is repealed. Ante, p. 830. 
(i) Subsection (e) of section 2201 of the Omnibus Budget Reconcili- ^
2 use 4i5 note. 
ation Act of 1981 is repealed. 
Ante, p. 830. 
(jXl) Subsection (h) of section 2201 of the Omnibus Budget Recon- 42 use 1
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ciliation Act of 1981 is repealed, effective September 1,1981. 
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(2) Except as provided in paragraphs (3) and (4), the amendments ^
2 use 4i5 note. 
made by section 2201 of the Omnibus Budget Reconciliation Act of 
1981 (other than subsection (f) thereof), together with the amend-
ments made by the preceding subsections of this section, shall apply 
with respect to benefits for months after December 1981; and the 
amendment made by subsection (f) of such section 2201 shall apply 
with respect 
to 
deaths occurring after Deicember 1981. 
(3) Such amendments shall not apply— 
(A) in the case of an old-age insurance benefit, if the individual 
who is entitled to such benefit first became eligible (as defined in 
section 215(aX3XB) of the Social Security Act) for such benefit 42 use 4i5. 
before January 1982, 
(B) in the case of 
a disability insurance benefit, if the individual 
who is entitled 
to 
such benefit 
first 
became eU^ble (as so defined) 
for such benefit before January 1982, or attamed age sixty-two 
before January 1982, 
(C) in the case of a wife's or husband's insurance benefit, or a 
child's insurance benefit based on the wages and self-employ-
ment income of a living individual, if the individual on whose 
wages and self-employment income such benefit is based is 
entitled to an old-age or disability insurance benefit with respect 
to which such amendments do not apply, or 
(D) in the case of 
a survivors insurance benefit, if 
the individual 
on whose wages and self-employment income such benefit is 
based died before January 1982, or dies in or after January 1982 
and at the time of his death is eligible (as so defined) for an old-
age or disability insurance benefit with respect to which such 
amendments do not apply. 
(4) In the case of an individued who is a member of a religious order 
(within the meaning of section 3121(rX2) of the Internal Revenue 
Code of 1954), or an autonomous subdivision of such order, whose 2
6 use 3121. 
members are required to take a vow of poverty, and which order or 
subdivision elected coverage under title n of the Social Security Act ^
2 use 401. 
before the date of the enactment of this Act, or who would be such a 
member except that such individual is considered retired because of 
old age or total disability, paragraphs (2) and (3) shall apply, except 
that each reference therein to "December 1981" or January 
1982"shall be considered a reference to "December 1991" or "Janu-
ary 1992", respectively. 
95 STAT. 1662 
PUBLIC LAW 97-123—DEC. 29, 1981 
EXTENSION OF COVERAGE TO FIRST SIX MONTHS OF SICK PAY 
42 use 409. 
SEC. 3. (a) aause (2) of section 209(b) of the Social Security Act is 
amended by inserting immediatelv after "sickness or accident dis-
abiUty" the following: "(but, in the case of payments made to an 
employee or any of his dependents, this clause shall exclude from the 
term ^vages' only payments which are received under a workmen's 
compensation lawr. 
(bXD Subparagraph (B) of 
section 3121(aX2) of 
the Internal Revenue 
26 use 3121. 
Code of 1954 (defuung wages for purposes of the Federal Insurance 
26 use 3126. 
Contributions Act) is amended to read as follows: 
"(B) sickness or accident disability (but, in the case of 
p a r e n t s made to an employee or any of his dependents, 
this subpara^aph shall exclude from the term 'wages' only 
payments wmch are received under a workmen's compensa-
tion law), or". 
(2) Section 3121(a) of 
such Code is further amended by adding at the 
end thereof (after and below paragraph (18)) the following new 
sentence: 
"Except as otherwise provided in regulations prescribed by the 
Secretary, any third party which makes a payment included in wages 
solely by reason of the parenthetical matter contained in subpara-
graph (B) of 
paragraph (2) shall be treated for purposes of this chapter 
26 use 3201 et 
and chaptor 22 as the employer with respect to such wa^es." 
SVsc S
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^ Subsection (e) of section 3231 of such Code (defining compensa-
26 use 3233 
^on for purposes of the Railroad Retirement Tax Act) is amended by 
adding at the end thereof the following new paragraph: 
"(4XA) For purposes of applying sections 3201(b) and 3221(b) 
(and so much of 
section 3211(a) as relates to the rates of the taxes 
imposed by sections 3101 and 3111), in the case of payments made 
to an employee or any of his dependents on account of sickness or 
accident disability, clause (i) of 
the second sentence of paragraph 
(1) shall exclude from the term 'compensation' only— 
"(i) payments which are received under a workmen's 
compensation law, and 
"(ii) benefits received under the Railroad Retirement Act 
45use23it. 
of 1974. 
"(B) Notwithstanding any other provision of law, for purposes 
of the sections specified in subparagraph (A), the term compen-
sation' shall include benefits paid under section 2(a) of the 
45 use 352. 
Railroad Unemployment Insurance Act for days of sickness, 
except to the extent that such sickness (as determined in accord-
ance with standards prescribed by the Railroad Retirement 
Board) is the result of 
on-the-job injury. 
"(C) Under regulations prescribed by the Secretary, subpara-
graphs (A) and (B) shall not apply to payments made after the 
expiration of a 6-month period comparable to the 6-month period 
described in section 3121(aX4). 
"(D) Except as otherwise provided in regulations prescribed by 
the Secretary, any third party which makes a payment included 
in compensation solely by reason of subparagraph (A) or (B) shall 
be treated for purposes of this chapter as the employer with 
respect to such compensation." 
26 use 3121 
(dXl) The regulations prescribed under the last sentence of section 
o^frcr. 0
1
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1 
3121(a) of tho Internal Revenue Code of 1954, and the regulations 
Supm 
prescribed under subparagraph (D) of section 3231(eX4) of such Code, 
shall provide procedures under which, if (with respect to any em-
ployee) the third party promptly— 
PUBLIC LAW 97-123—DEC. 29, 1981 
95 STAT. 1663 
(A) withholds the employee portion of the taxes involved, 
(B) deposits such portion under section 6302 of such Code, and 2
6 use 6302. 
(C) notifies the employer of the amount of the wages or 
compensation involved, 
the employer (and not the third party) shall be liable for the employer 
portion of the taxes involved and for meeting the requirements of 
section 6051 of such Code (relating to receipts for employees) with 
respects to the wages or compensation involved. 
(2) For purposes of 
paragraph (1)— 
Definitions. 
(A) the term "employer" means the employer for whom serv-
ices are normally rendered, 
(B) the term "taxes involved" means, in the case of any 
employee, the taxes under chapters 21 and 22 which are payable ^6 use 3ioi et 
solely by reason of the parenthetical matter contained in subpar- ^^^' 
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agraph (B) of 
section 3121(aX2) of 
such Code, or solely by reason of 
paragraph (4) of 
section 3231(e) of 
such Code, and 
(C) the term "wages or compensation involved" means, in the 
case of any employee, wages or compensation with respect to 
which taxes described in subparagraph (B) are imposed. 
(e) For purposes of applying section 209 of the Social Security Act, 2
6 use 3i2i 
section 3121(a) of the Internal Revenue Code of 1954, and section Jg^use 409 
3231(e) of such Code with respect to the parenthetical matter con- 26 use 3121 
tained in section 209(bX2) of the Social Security Act or section 
3121(aX2)(B) of the Internal Revenue Code of 1954, or with respect to 
section 3231(e)(4) of such Code (as the case may be), pa3niients under a 
State temporary disability law shall be treated as remuneration for 
service. 
(f) Notwithstanding any other provision of law, no penalties or 2
6 use 3101 
interest shall be assessed on account of any failure to make timely "°*^ 
payment of taxes, imposed by section 3101, 3111, 3201(b), 3211, or 
3221(b) of the Internal Revenue Code of 1954 with respect to pay- 2
6 use 3101, 
ments made for the period beginning January 1, 1982, and ending 
June 30,1982, to the extent that such taxes are attributable to this 
section (or the amendments made by this section) and that such 
failure is due to reasonable cause and not to willful neglect. 
(gXD Except as provided in paragraph (2), this section (and the 2
6 use 3121 
amendments made by this section) shall apply to remuneration paid "°^ 
after December 31,1981. 
(2) This section (and the amendments made by this section) shall 
not apply with respect to any payment made by a third party to an 
emplovee pursuant to a contractual relationship of an employer with 
such third party entered into before December 14,1981, i
f
— 
(A) coverage by such third party for the group in which such 
employee falls ceases before March 1,1982, and 
(B) no payment by such third party is made to such employee 
under such relationship after February 28,1982. 
PENALTIES FOR MISUSE OF SOCIAL SECURITY NUMBERS 
SEC. 4. (a) Section 208(g) of the Social Security Act is amended— 4
2 use 408. 
(1) by inserting "or for the purpose of obtaining anything of 
value from any person," before "or for any other purpose" in the 
matter preceding paragraph (1); and 
(2) by adding after paragraph (2) the following new paragraph: 
"(3) knowingly alters a social security card issued by the 
Secretary, buys or sells a card that is, or purports to be, a card so 
issued, counterfeits a social security card, or possesses a social 
3111, 
3201, 3211, 
3221. 
95 STAT. 1664 
PUBLIC LAW 97-123—DEC. 29, 1981 
security card or counterfeit social security card with intent to 
sell or alter it; or". 
42 use 408. 
(b) Section 208 of 
such Act is further amended by striking out "shall 
be guilty of 
a misdemeanor and upon conviction thereof shall be fined 
not more than $1,000 or imprisoned for not more than one year, or 
both" in the matter following subsection (h) and inserting in lieu 
thereof "shall be guilty of a felony and upon conviction thereof shall 
be fined not more than $5,000 or imprisoned for not more than five 
years, or both". 
Effertiye date 
(j.) The amendments made by subsections (a) and (b) shall be 
4
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« note, effg^tive with respect to violations committed after the date of the 
enactment of 
this Act. 
STATUTORY DEADLINE FOR IMPLEMENTING AFDC HOME HEALTH AIDE 
DEMONSTRATION PROJECTS 
SEC. 5. The last sentence of subsection (cX2) of section 966 of the 
42 use 632a. 
Omuibus Reconciliation Act of 1980 (as added by section 2156 of the 
Ante, p. 802. 
Omuibus Budgct Reconciliation Act of 1981) is amended by inserting 
"with at least seven States" after "agreements". 
INFORMATION WITH RESPECT TO PRISONERS 
42 use 423. 
SEC 6. Section 223(f) of the Social Security Act is amended by 
adding at the end thereof 
the following new paragraph: 
"(3) Notwithstanding the provisions of section 552a of title 5, 
United States Ck)de, or any other provision of Federal or State law, 
any agency of the United States Government or of any State (or 
political subdivision thereof) shall make available to the Secretary, 
upon written request, the name and social security account number 
of any individual who is confined in a jail, prison, or other penal 
institution or correctional facility under the jurisdiction of such 
agency, pursuant to his conviction of an offense which constituted a 
felony under applicable law, which the Secretary may require to 
cany out the provisions of 
this subsection.". 
PUBLIC LAW 97-123—DEC. 29, 1981 
95 STAT. 1665 
REPORT TO CONGRESS 
SEC. 7. The Secretary of 
Health and Human Services shall report to 
the Congress within ninety days after the date of the enactment of 
this Act with respect to the actions being taken to prevent payments 
from being made under title n of the Social Security Act to deceased ^
2 use 4oi. 
individuals, including to the extent possible the use of the death 
records available imder the medicare program to screen the cash 
benefit 
rollsforsuchdeceased individuals. 
Approved December 29, 1981. 
LEGISLATIVE HISTORY—H.R. 4331: 
HOUSE REPORT No. 97-409 (Comm. of Conference). 
CONGRESSIONAL RECORD, Vol. 127 (1981): 
July 31, considered and passed House. 
July 31, Oct. 14, 15, considered and passed Senate, amended. 
Dec. 15, Senate agreed to conference report. 
Dec. 16, House agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 17, No. 53 (1981): 
Dec. 29, Presidential statement.