Social Security Disability Amendments of 1980
PL 96-265 (H.R.3236), enacted 06/09/1980

PUBLIC LAW 96-265—JUNE 9, 1980 
94 STAT. 441 
Public Law 96-265 
96th Congress 
An Act 
To amend the Social Security Act to provide better work incentives and improved 
accountability in the disability programs, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of 
America in Congress assembled. That this Act may be 
cited as the Social Security Disability Amendments of 1980". 
TABLE OF CONTENTS 
Sec. 1. Short title. 
TITLE I-PROVISIONS RELATING TO DISABILITY BENEFITS UNDER 
OASDI PROGRAM 
June 9, 1980 
[H.R. 3236] 
Social Security 
Disability 
Amendments of 
1980. 
42 use 1305 
note. 
Sec. 101. Limitation on total family benefits in disability cases. 
Sec. 102. Reduction in dropout years for younger disabled workers. 
Sec. 103. Provisions relating to medicare waiting period for recipients of disability 
benefits. 
Sec. 104. Continuation of medicare eligibility. 
TITLE II-PROVISIONS RELATING TO DISABILITY BENEFITS UNDER THE 
SSI PROGRAM 
Sec. 201. Benefits for individuals who perform substantial gainful activity despite 
severe medical impairment. 
Sec. 202. Earned income in sheltered workshops. 
Sec. 203. Termination of attribution of parents' income and resources when child 
attains age 18. 
-PROVISIONS AFFECTING DISABILITY RECIPIENTS UNDER OASDI 
AND SSI PROGRAMS; ADMINISTRATIVE PROVISIONS 
Continued payment of benefits to individuals under vocational rehabilita-
tion plans. 
Extraordinary work expenses due to severe disability. 
Reentitlement to disability benefits. 
Ehsability determinations; Federal review of State agency determinations. 
Information to accompany Secretary's decisions. 
Limitation on prospective effect of application. 
Limitation on court remands. 
Time limitations for decisions on benefit clalma 
Payment for existing medical evidence. 
Payment of certain travel expenses. 
Periodic review of disability determinations. 
Report by Secretary. 
TITLE IV-PROVISIONS RELATING TO AFDC AND CHILD SUPPORT 
PROGRAMS 
Sec. 401. Work requirement under the AFDC prt^ram. 
Sec. 402. Use of Internal Revenue Service to collect child support for non-AFDO 
families. 
Sec. 403. Safeguards restricting disclosure of certain information under AFDC and 
social service programs. 
Sec. 404. Federal matching for child support duties performed by certain court 
personnel. 
TITLE ra 
Sec 
Sec 
CAT* 
Sec 
Sec 
Sec 
Sec 
C o / . 
Sec. 
301. < 
302. 1 
303. ] 
304. ] 
305. 1 
306. ] 
307. ] 
308. ' 
309. 1 
310. ] 
311. ] 
312. 1 
94 STAT. 442 
PUBLIC LAW 96-265—JUNE 9, 1980 
Sec. 405. Child support management information sjrstem. 
Sec. 406. AFDC management information sj^tem. 
Sec. 407. Child support reporting and matching procedures. 
Sec. 408. Access to wage information for purpo^s of carrying out State plans for 
child support. 
TITLE V-OTHER PROVISIONS RELATING TO THE SOCL\L SECURITY ACT 
Sec. 501. Relationship between social security and SSI benefits. 
Sec. 502. Extension of National Commission on Social Security. 
Sec. 503. Time for making of social security contributions with respect to covered 
State and local employees. 
Sec. 504. Eligibility of aliens for SSI benefits. 
Sec. 505. Authority for demonstration projects. 
Sec. 506. Additional funds for demonstration project relating to the terminally ill. 
Sec. 507. Voluntaiy certification of medicare supplemental health insurance 
policies. 
TITLE I—PROVISIONS RELATING TO DISABILITY BENEFITS 
UNDER OASDI PROGRAM 
LIMITATION ON TOTAL FAMILY BENEFITS IN DISABILITY CASES 
42 use 403. 
SEC. 101. (a) Section 203(a) of the Social Security Act is amended— 
(1) by striking out "except as provided by paragraph (3)" in 
paragraph (1) (in the matter preceding subparagraph (A)) and 
inserting in lieu thereof "except as provided by paragraphs (3) 
and (6)"; 
(2) by redesignating paragraphs (6), (7), and (8) as paragraphs 
(7), (8), and (9), respectively; and 
(3) by inserting after paragraph (5) the following new 
paragraph: 
"(6) Notwithstanding any of 
the preceding provisions of 
this subsec-
tion other than paragraphs (3XA), (3XC), and (5) (but subject to section 
42 use 415. 
215(iX2XAXii)), the total monthly benefits to which beneficiaries may 
42 use 402,423. be entitled under sections 202 and 223 for any month on the basis of 
the wajges and self-employment income of an individual entitled to 
disability insurance benents, whether or not such total benefits are 
otherwise subject to reduction under this subsection but after any 
reduction under this subsection which would otherwise be applicable, 
shall be, reduced or further reduced (before the application of section 
42 use 424a. 
224) to the smaller o
f
— 
"(A) 85 percent of such individual's average indexed monthly 
earnings (or 100 percent of his primary insurance amount, if 
larger), or 
"(B) 150 percent of such individual's primary insurance 
amount.". 
42 use 403. 
(bXl) Section 203(aX2XD) of such Act is amended by striking out 
"paragraph (7)" and inserting in lieu thereof "paragraph (8)". 
(2) Section 203(aX8) of such Act, as redesignated by subsection (aX2) 
of this section, is amended by striking out "paragraph (6)" and 
inserting in lieu thereof "paragraph (7)". 
42 use 415. 
(3) Section 215(iX2XAXiiXIID of such Act is amended bv striking out 
"section 203(a) (6) and (7)" and inserting in lieu thereof' 
Wtion 203(a) 
(7) and (8)". 
(4) Section 215(iX2)(D) of such Act is amended by adding at the end 
thereof the following new sentence: "Notwithstanding the preceding 
sentence, such revision of maximum family benefits shall be subject 
to paragraph (6) of section 203(a) (as added Inr section 101(aX3) of the 
Supra. 
Social Security Disability Amendments of 1980).". 
PUBLIC LAW 96-265—JUNE 9, 1980 
94 STAT. 443 
(c) The amendments made by this section shall apply only with 42 use 403 note, 
respect to monthly benefits payable on the basis of the wages and self-
employment income of an individual who first becomes eligible for 
benefits (determined under sections 215(a)(3)(B) and 215(a)(2)(A) of the 
Social Security Act, as applied for this purpose) after 1978, and who 42 USC 415. 
first becomes entitled to disability insurance benefits after June 30, 
1980. 
REDUCTION IN NUMBER OF DROPOUT YEARS FOR YOUNGER DISABLED 
WORKERS 
SEC. 102. (a) Section 215(b)(2)(A) of the Social Security Act is 42 use 415. 
amended to read as follows: 
"(2)(A) The number of an individual's benefit computation years 
equals the number of elapsed years reduced— 
"(i) in the case of an individual who is entitled to old-age 
insurance benefits (except as provided in the second sentence of 
this subparagraph), or who has died, by 5 years, and 
"(ii) in the case of an individual who is entitled to disability 
insurance benefits, by the number of years equal to one-fifth of 
such individual's elapsed years (disregarding any resulting frac-
tional part of a year), but not by more than 5 years. 
Clause (ii), once applicable with respect to any individual, shall 
continue to apply for purposes of determining such individual's 
primary insurance amount for purposes of any subsequent eligibility 
for disability or old-age insurance benefits unless prior to the month 
in which such eligibility begins there occurs a period of at least 12 
consecutive months for which he was not entitled to a disability or an 
old-age insurance benefit. If an individual described in clause (ii) is 
living with a child (of such individual or his or her spouse) under the 
age of 3 in any calendar year which is included in such individual's 
computation base years, but which is not disregarded pursuant to 
clause (ii) or to subparagraph (B) (in determining such individual's 
benefit computation years) by reason of the reduction in the number 
of such individual's elapsed years under clause (ii), the number by 
which such elapsed years are reduced under this subparagraph 
pursuant to clause (ii) shall be increased by one (up to a combined 
total not exceeding 3) for each such calendar year; except that (I) no 
calendar year shall be disregarded by reason of this sentence (in 
determining such individual's benefit computation years) unless the 
individual was living with such child substantially throughout the 
period in which the child was alive and under the age of 3 in such 
year and the individual had no earnings as described in section 
203(f)(5) in such year, (II) the particular calendar years to be disre- 42 use 403. 
garded under this sentence (in determining such benefit computation 
years) shall be those years (not otherwise disregarded under clause 
(ii)) which, before the application of section 215(f), meet the conditions 
of subclause (I), and (III) this sentence shall apply only to the extent 
that its application would not result in a lower primary insurance 
amount. The number of an individual's benefit computation years as 
determined under this subparagraph shall in no case be less than 2.". 
(b) Section 223(a)(2) of such Act is amended by inserting "and 42 use 423. 
section 215(b)(2)(A)(ii)" after "section 202(q)" in the first sentence. 42 use 415, 402. 
(c) The amendments made by this section shall apply only with 42 use 415 note. 
respect to monthly benefits payable on the basis of the wages and self-
employment income of an individual who first becomes entitled to 
disability insurance benefits on or after July 1, 1980; except that the 
94 STAT. 444 
PUBLIC LAW 96-265—JUNE 9, 1980 
Ante, p. 443. 
third Sentence of section 215(b)(2)(A) of the Social Security Act (as 
added by such amendments) shall apply only with respect to monthly 
benefits payable for months beginning on or after July 1, 1981. 
PROVISIONS RELATING TO MEDICARE WAITING PERIOD FOR RECIPIENTS 
OF DISABILITY BENEFITS 
42 use 426. 
SEC. 103. (aXlXA) Section 226(bX2) of the Social Security Act is 
amended by striking out "consecutive" in clauses (A) and (B). 
(B) Section 226(b) of such Act is further amended by striking out 
"consecutive" in the matter following paragraph (2). 
42 use 1395c. 
(2) Section 1811 of such Act is amended by striking out 
42usei395p. 
(3) Section'l837(gXl) of such Act is amended by striking out 
consecutive 
45 use 23if. 
(4) Section *7(dX2Xii) of the Railroad Retirement Act of 1974 is 
amended by striJking out "consecutive" each place it appears. 
42 use 426. 
(b) Section 226 of the Social Security Act is amended by redesignat-
ing subsection (f) as subsection (g), and by inserting after subsection 
(e) the following new subsection: 
"(f) For purposes of subsection (b) (and for purposes of section 
Supra. 
1837(gXl) of this Act and section 7(dX2Xii) of the Railroad Retirement 
Supra. 
Act of 1974), the 24 months for which an individual has to have been 
entitled to specified monthly benefits on the basis of disability in 
order to become entitled to hospital insurance benefits on such basis 
effective with any particular month (or to be deemed to have enrolled 
in the supplementary medical insurance program, on the basis of 
such entitlement, by reason of section 1837(f)), where such individual 
had been entitled to specified monthly benefits of the same type 
during a previous period which terminated— 
"(1) more than 60 months before the month in which his 
current disability began in any case where such monthl^r benefits 
were of 
the type specified in clause (AXi) or (B) of 
subsection (bX2), 
or 
"(2) more than 84 months before the month in which his 
current disability began in any case where such monthly benefits 
were of the type specified in clause (AXii) or (AXiii) of such 
subsection, 
shall not include any month which occurred during such previous 
period.". 
42 use 426 note. 
(c) The amendments made by this section shall apply with respect 
to hospital insurance or supplementary medical insurance benefits 
for services provided on or after the first day of the sixth month 
which begins after the date of 
the enactment of 
this Act. 
CONTINUATION OF MEDICARE EUGIBILITY 
42 use 426. 
SEC. 104. (a) Section 226(b) of the Social Security Act is amended— 
(1) by striking out "ending with the month" in the matter 
following paragraph (2) and inserting in lieu thereof "ending 
(subject to the last sentence of this subsection) with the month , 
and 
(2) by adding at the end thereof the following new sentence: 
"For purposes of this subsection, an individual who has had a 
period of trial work which ended as provided in section 
42 use 422. 
222(cX4XA), and whose entitlement to benefits or status as a 
qualified railroad retirement beneficiary as described in para-
PUBLIC LAW 96-265—JUNE 9, 1980 
94 STAT. 445 
graph (2) has subsequently terminated, shall be deemed to be 
entitled to such benefits or to occupy such status (notwithstand-
ing the termination of such entitlement or status) for the period 
of consecutive months throughout edl of which the physical or 
mental impairment, on which such entitlement or status was 
based, continues, and throughout all of which such individual 
would have been entitled to monthly insurance benefits under 
title II or as a qualified railroad retirement beneficiary had such 
individual been unable to engage in substantial gainful activity, 
but not in excess of 24 such months.". 
Ot)) The amendments made by subsection (a) shedl become effective 
on the first day of the sixth month which begins after the date of the 
enactment of this Act, and shcdl apply with respect to any individual 
whose disability has not been determined to have ceased prior to such 
first day. 
TITLE II—PROVISIONS RELATING TO DISABILITY BENEFITS 
UNDER THE SSI PROGRAM 
BENEFITS FOR INDIVIDUALS WHO PERFORM SUBSTANTIAL GAINFUL 
ACTIVITY DESPITE SEVERE MEDICAL IMPAIRMENT 
SEC. 201. (a) Part A of title XVI of the Social Security Act is 
amended by adding at the end thereof the following new section: 
42 u s e 401. 
Effective date. 
42 u s e 426 note. 
42 u s e 1396, 
1397. 
BENEFITS FOR INDIVIDUALS WHO PERFORM SUBSTANTIAL GAINFUL 
ACTIVITY DESPITE SEVERE MEDICAL IMPAIRMENT 
"SEC. 1619. (a) Any individual who is an eligible individual (or 42 use I382h. 
eligible spouse) by reason of being under a disability and was eligible 
to receive benefits under section 1611(b) or under this section for the 42 use 1382. 
month preceding the month for which eligibility for benefits under 
this section is now being determined, and who would otherwise be 
denied benefits by reason of section 1611(eX4) or ceases to be an 
eligible individual (or eligible spouse) because his earnings have 
demonstrated a capacity to engage in substantial gainful activity, 
shall nevertheless qualify for a monthly benefit equal to an amount 
determined under section 1611(bXl) (or, in the case of an individusd 
who has an eligible spouse, under section 1611(bX2)), and for purposes 
of titles XIX and XX of this Act shall be considered a disabled 
individual receiving supplemental security income benefits under 
this title, for so long as the Secretary determines that— 
"(1) such individual continues to have the disabling physical or 
mental impairment on the basis of which such individual was 
found to be under a disability, and continues to meet all non-
disability-related requirements for eligibility for benefits under 
this title; and 
"(2) the income of such individual, other than income excluded 
pursuant to section 16120t)), is not equal to or in excess of the 42 use I382a. 
amount which would cause him to be ineligible for pa)rments 
under section 1611(b) (if he were otherwise eligible for such 
payments). 
"(b) For purposes of titles XIX and XX, any individual under age 65 
who, for the month preceding the first month in the period to which 
this subsection applies, received— 
"(i) a payment of supplemental security income benefits under 
section 1611(b) on the basis of blindness or disability. 
94 STAT. 446 
PUBLIC LAW 96-265—JUNE 9, 1980 
42 use I382e. 
"([[) ^ supplementary payment under section 1616 of this Act 
87 Stat. 155. 
or under section 212 of Public Law 93-66 on such basis, 
"(iii) a payment of monthly benefits under subsection (a), or 
"(iv) a supplementary payment under section 1616(c)(3), 
shall be considered to be a blind or disabled individual receiving 
supplemental security income benefits for so long as the Secretary 
determines under regulations that— 
"(1) such individual continues to be blind or continues to have 
the disabling physical or mental impairment on the basis of 
which he was found to be under a disability and, except for his 
earnings, continues to meet all non-disability-related require-
ments for eligibility for benefits under this title; 
"(2) the income of such individual would not, except for his 
earnings, be equal to or in excess of the amount which would 
cause him to be ineligible for payments under section 1611(b) (if 
he were otherwise eligible for such payments); 
"(3) the termination of eligibility for benefits under title XIX 
or XX would seriously inhibit his ability to continue his employ-
ment; and 
"(4) such individual's earnings are not sufficient to allow him 
to provide for himself a reasonable equivalent of the benefits 
under this title and titles XIX and XX which would be available 
to him in the absence of such earnings.". 
42 use I382e. 
(b)(1) Section 1616(c) of such Act is amended by adding at the end 
thereof the following new paragraph: 
"(3) Any State (or political subdivision) making supplementary 
payments described in subsection (a) shall have the option of making 
such payments to individuals who receive benefits under this title 
under the provisions of section 1619, or who would be eligible to 
receive such benefits but for their income.". 
42 use 1382 
(2) Section 212(a) of Public Law 93-66 is amended by adding at the 
"°*^^' 
end thereof the following new paragraph: 
"(4) Any State having an agreement with the Secretary under 
paragraph (1) may, at its option, include individuals receiving bene-
Ante, p. 445. 
fits 
under section 1619 of the Social Security Act, or who would be 
eligible to receive such benefits but for their income, under the 
agreement as though they are aged, blind, or disabled individuals as 
specified in paragraph (2XA).". 
(c) Part A of title XVI of the Social Security Act is amended by 
adding at the end thereof (after the new section added by subsection 
Ante, p. 445. 
(a) of this section) the following new section: 
"MEDICAL AND SOCIAL SERVICES FOR CERTAIN HANDICAPPED PERSONS 
42 use 13821. 
"SEC. 1620. (a) There are authorized to be appropriated such sums 
as may be necessary to establish and carry out a 3-year Federal-State 
pilot program to provide medical and social services for certain 
handicapped individuals in accordance with this section. 
"(b)(1) The total sum of $18,000,000 shall be allotted to the States 
for such program by the Secretary, during the period beginning 
September 1, 1981, and ending September 30, 1984, as follows: 
"(A) The total sum of $6,000,000 shall be allotted to the States 
for the fiscal year ending September 30,1982 (which for purposes 
of this section shall include the month of September 1981). 
"(B) The total sum of $6,000,000, plus any amount remaining 
available (after the application of paragraph (4)) from the allot-
PUBLIC LAW 96-265—JUNE 9, 1980 
94 STAT. 447 
ment made under subparagraph (A), shall be allotted to the 
States for the fiscal year ending September 30,1983. 
"(C) The total sum of $6,000,000, plus any amount remaining 
available (after the application of paragraph (4)) from the allot-
ments made under subparagraphs (A) and (B), shall be allotted to 
the States for the fiscal year ending September 30,1984. 
"(2) The allotment to each State from the total sum allotted under 
paragraph (1) for any fiscal year shall bear the same ratio to such 
total sum as the number of individuals in such State who are over age 
17 and under age 65 and are receiving supplemental security income 
benefits as disabled individuals in such year (as determined by the 
Secretary on the basis of the most recent data available) bears to the 
total number of such individuals in all the States. For purposes of the 
preceding sentence, the term 'supplemental security income benefits' 
includes payments made pursuant to an agreement under section 
1616(a) of this Act or under section 212(b) of Public Law 93-66. 
"(3) At the beginning of each fiscal year in which the pilot program 
under this section is in effect, each State that does not intend to use 
the allotment to which it is entitled for such year (or any allotment 
which was made to it for a prior fiscal year), or that does not intend to 
use the full amount of any such allotment, shall certify to the 
Secretary the amount of such allotment which it does not intend to 
use, and the State's allotment for the fiscal year (or years) involved 
shall thereupon be reduced by the amount so certified. 
"(4) The portion of the total amount available for allotment for any 
particular fiscal year under paragraph (1) which is not allotted to 
States for that year by reason of paragraph (3) (plus the amount of 
any reductions made at the beginning of such year in the allotments 
of States for prior fiscal years under paragraph (3)) shall be reallo-
cated in such manner as the Secretary may determine to be appro-
priate to States which need, and will use, additional assistance in 
providing services to severely handicapped individuals in that partic-
ular year under their approved plans. Any amount reallocated to a 
State under this paragraph for use in a particular fiscal year shall be 
treated for purposes of this section as increasing such State's allot-
ment for that year by an equivalent amount. 
"(c) In order to participate in the pilot program and be eligible to 
receive payments for any period under subsection (d), a State (during 
such period) must have a plan, approved by the Secretary as meeting 
the requirements of this section, which provides medical and social 
services for severely handicapped individuals whose earnings are 
above the level which ordinarily demonstrates an ability to engage in 
substantial gainful activity and who are not receiving benefits under 
section 1611 or 1619 or assistance under a State plan approved under 
section 1902, and which— 
"(1) declares the intent of the State to participate in the pilot 
program; 
"(2) designates an appropriate State agency to administer or 
supervise the administration of the program in the State; 
"(3) describes the criteria to be applied by the State in deter-
mining the eligibility of any individual for assistance under the 
plan and in any event requires a determination by the State 
agency to the effect that (A) such individual's ability to continue 
his employment would be significantly inhibited without such 
assistance and (B) such individual's earnings are not sufficient to 
allow him to provide for himself a reasonable equivalent of the 
"Supplemental 
security income 
benefits." 
42 u s e 1382e. 
87 Stat. 155. 
Certification to 
Secretary. 
Reallocation. 
42 u s e 1382. 
Ante, p. 445. 
42 u s e 1396a. 
79-194 
O—81—pt. 1 
32 : QL3 
94 STAT. 448 
PUBLIC LAW 96-265—JUNE 9, 1980 
42 u s e 1381, 
1396, 1397. 
42 u s e 1397b. 
Regulations. 
Reports to 
Secretary and 
Congress. 
cash and other benefits that would be available to him under this 
title and titles XIX and XX in the absence of those earnings; 
"(4) describes the process by which the eligibility of individuals 
for such assistance is to be determined (and such process may not 
involve the performance of functions by any State agency or 
entity which is engaged in making determinations of disability 
for purposes of disability insurance or supplemental security 
income benefits except when the use of a different agency or 
entity to perform those functions would not be feasible); 
"(5) describes the medical and social services to be provided 
under the plan; 
"(6) describes the manner in which the medical and social 
services involved are to be provided and, if they are not to be 
provided through the State's medical assistance and social serv-
ices programs under titles XIX and XX (with the Federal 
payments being made under subsection (d) of this section rather 
than under those titles), specifies the particular mechanisms and 
procedures to be used in providing such services; and 
"(7) contains such other provisions as the Secretary may find to 
be necessary or appropriate to meet the requirements of this 
section or otherwise carry out its purpose. 
The plan under this section may be developed and submitted as a 
separate State plan, or may be submitted in the form of an amend-
ment to the State's plan under section 2003(dXl). 
"(d)(1) From its allotment under subsection (b) for any fiscal year 
(and any amounts remaining available from allotments made to it for 
prior fiscal years), the Secretary shall from time to time pay to each 
State which has a plan approved under subsection (c) an amount 
equal to 75 per centum of the total sum expended under such plan 
(including the cost of administration of such plan) in providing 
medical and social services to severely handicapped individuals who 
are eligible for such services under the plan. 
"(2) The method of computing and making payments under this 
section shall be as follows: 
"(A) The Secretary shall, prior to each period for which a 
payment is to be made to a State, estimate the amount to be paid 
to the State for such period under the provisions of this section. 
"(B) From the allotment available therefor, the Secretary shall 
pay the amount so estimated, reduced or increased, as the case 
may be, by any sum (not previously adjusted under this subsec-
tion) by which he finds that his estimate of the amount to be paid 
the State for any prior period under this section was greater or 
less than the amount which should have been paid to the State 
for such period under this section. 
"(e) Within nine months after the date of the enactment of this 
section, the Secretary shall prescribe and publish such regulations as 
may be necessary or appropriate to carry out the pilot program and 
otherwise implement this section. 
"(0 Each State participating in the pilot program under this section 
shall from time to time report to the Secretary on the operation and 
results of such program in that State, with particular emphasis upon 
the work incentive effects of the program. On or before October 1, 
1983, the Secretary shall submit to the Congress a report on the 
program, incorporating the information contained in the State 
reports along with his findings and recommendations.". 
PUBLIC LAW 96-265—JUNE 9, 1980 
94 STAT. 449 
(d) The amendments made by subsections (a) and (b) shall become 
effective on January 1, 1981, but shall remain in effect only for a 
period of three years after such effective date. 
(e) The Secretary shall provide for separate accounts with respect 
to the benefits payable by reason of the amendments made by 
subsections (a) and (b) so as to provide for evaluation of the effects of 
such amendments on the programs established by titles II, XVI, XIX, 
and XX of the Social Security Act. 
EARNED INCOME IN SHELTERED WORKSHOPS 
SEC. 202. (a) Section 1612(a)(1) of the Social Security Act is 
amended— 
(1) by striking out "and" after the semicolon at the end of 
subparagraph (A); and 
(2) by adding after subparagraph (B) the following new 
subparagraph: 
**(C) remuneration received for services performed in a 
sheltered workshop or work activities center; and". 
(b) The amendments made by subsection (a) shall apply only with 
respect to remuneration received in months after September 1980. 
Effective date. 
42 u s e 1382h 
note. 
42 u s e 1382h 
note. 
42 u s e 401, 
1381, 1396, 1397. 
42 u s e 1382a. 
42 u s e 1382a 
note. 
TERMINATION OF ATTRIBUTION OF PARENTS INCOME AND RESOURCES 
WHEN CHILD ATTAINS AGE 18 
SEC 203. (a) Section 1614(f)(2) of the Social Security Act is amended 
by striking out "under age 21" and inserting in lieu thereof "under 
age 18". 
(b) The amendment made by subsection (a) shall become effective 
on October 1, 1980; except that the amendment made by such 
subsection shall not apply, in the case of any child who, in September 
1980, was 18 or over and received a supplemental security income 
benefit for such month, during any period for which such benefit 
would be greater without the application of such amendment. 
TITLE III—PROVISIONS AFFECTING DISABILITY RECIPIENTS 
UNDER OASDI AND SSI PROGRAMS; ADMINISTRATIVE 
PROVISIONS 
42 u s e 1382c. 
Effective date. 
42 u s e 1382c 
note. 
CONTINUED PAYMENT OF BENEFITS TO INDIVIDUALS UNDER 
VOCATIONAL REHABIUTATION PLANS 
SEC. 301. (a)(1) Section 225 of the Social Security Act is amended by 42 use 425. 
inserting "(a)" after "SEC. 225.", and by adding at the end thereof the 
following new subsection: 
"(b) Notwithstanding any other provision of this title, payment to 
an individual of benefits based on disability (as described in the first 
sentence of subsection (a)) shall not be terminated or suspended 
because the physical or mental impairment, on which the individ-
ual's entitlement to such benefits is based, has or may have ceased, 
if— 
"(1) such individual is participating in an approved vocational 
rehabilitation program under a State plan approved under title I 
of the Rehabilitation Act of 1973, and 
29 use 720. 
"(2) the Commissioner of Social Security determines that the 
completion of such program, or its continuation for a specified 
period of time, will increase the likelihood that such individual 
94 STAT. 450 
PUBLIC LAW 96-265—JUNE 9, 1980 
Ante, p. 449. 
42 u s e 1383. 
42 u s e 1382c. 
29 u s e 720. 
Effective date. 
42 u s e 425 note. 
may (following his participation in such program) be perma-
nently removed from the disability benefit rolls.". 
(2) Section 225(a) of such Act (as designated under subsection (a) of 
this section) is amended by striking out "this section" each place it 
appears and inserting in lieu thereof "this subsection". 
(b) Section 1631(a) of such Act is amended by adding at the end 
thereof the following new paragraph: 
"(6) Notwithstanding any other provision of this title, pa3mient of 
the benefit of any individual who is an aged, blind, or disabled 
individual solely by reason of disability (as determined under section 
1614(a)(3)) shall not be terminated or suspended because the physical 
or mental impairment, on which the individual's eligibility for such 
benefit is based, has or may have ceased, if— 
"(A) such individual is participating in an approved vocational 
rehabilitation program under a State plan approved under title I 
of the Rehabilitation Act of 1973, and 
"(B) the Commissioner of Social Security determines that the 
completion of such program, or its continuation for a specified 
period of time, will increase the likelihood that such individual 
may (following his participation in such program) be perma-
nently removed from the disability benefit rolls.'. 
(c) The amendments made by this section shall become effective on 
the first day of the sixth month which begins after the date of the 
enactment of this Act, and shall apply with respect to individuals 
whose disability has not been determined to have ceased prior to such 
first day. 
EXTRAORDINARY WORK EXPENSES DUE TO SEVERE DISABILITY 
42 use 423. 
SEC. 302. (a)(1) Section 223(d)(4) of the Social Security Act is 
amended by inserting after the third sentence the following new 
sentence: "In determining whether an individual is able to engage in 
substantial gainful activity by reason of his earnings, where his 
disability is sufficiently severe to result in a functional limitation 
requiring assistance in order for him to work, there shall be excluded 
from such earnings an amount equal to the cost (to such individual) of 
any attendant care services, medical devices, equipment, prostheses, 
and similar items and services (not including routine drugs or routine 
medical services unless such drugs or services are necessary for the 
control of the disabling condition) which are necessary (as deter-
mined by the Secretary in regulations) for that purpose, whether or 
not such assistance is also needed to enable him to carry out his 
normal daily functions; except that the amounts to be excluded shall 
be subject to such reasonable limits as the Secretary may prescribe.". 
42 use 1382c. 
(2) Section 1614(a)(3)(D) of such Act is amended by inserting after 
Post, p. 453. 
^jjg f^j.g^ sentence the following new sentence: "In determining 
whether an individual is able to engage in substantial gainful activity 
by reason of his earnings, where his disability is sufficiently severe to 
result in a functional limitation requiring assistance in order for him 
to work, there shall be excluded from such earnings an amount equal 
to the cost (to such individual) of any attendant care services, medical 
devices, equipment, prostheses, and similar items and services (not 
including routine drugs or routine medical services unless such drugs 
or services are necessary for the control of the disabling condition) 
which are necessary (as determined by the Secretary in regulations) 
for that purpose, whether or not such assistance is also needed to 
enable him to carry out his normal daily functions; except that the 
PUBLIC LAW 96-265—JUNE 9, 1980 
94 STAT. 451 
amounts to be excluded shall be subject to such reasonable limits as 
the Secretary may prescribe.". 
(b) Section 16120t))(4)(B) of such Act is amended by striking out 
"plus one-half of the remainder thereof, and (ii)" and inserting in lieu 
thereof the following: "(ii) such additional amounts of earned income 
of such individual (for purposes of determining the amount of his or 
her benefits under this title and of determining his or her eligibility 
for such benefits for consecutive months of eligibility after the initial 
month of such eligibility), if such individual's disability is sufficiently 
severe to result in a functional limitation requiring assistance in 
order for him to work, as may be necessary to pay the costs (to such 
individual) of attendant care services, medical devices, equipment, 
prostheses, and similar items and services (not including routine 
drugs or routine medical services unless such drugs or services are 
necessary for the control of the disabling condition) which are 
necessary (as determined by the Secretary in regulations) for that 
purpose, whether or not such assistance is also needed to enable him 
to carry out his normal daily functions, except that the amounts to be 
excluded shall be subject to such reasonable limits as the Secretary 
may prescribe, (iii) one-half of the amount of earned income not 
excluded after the application of the preceding provisions of this 
subparagraph, and (iv)' . 
(c) The amendments made by this section shall apply with respect 
to expenses incurred on or after the first day of the sixth month 
which begins after the date of the enactment of this Act. 
42 u s e 1382a. 
42 u s e 423 note. 
REENTITLEMENT TO DISABIUTY BENEFITS 
SEC. 303. (a)(1) Section 222(c)(1) of the Social Security Act is 
amended by striking out "section 223 or 202(d)" and inserting in lieu 
thereof "section 223,202(d), 202(e), or 202(f)". 
(2) Section 222(c)(3) of such Act is amended by striking out the 
period at the end of the first sentence and inserting in lieu thereof 
", or, in the case of an individual entitled to widow's or widower's 
insurance benefits under section 202 (e) or (f) who became entitled to 
such benefits prior to attaining age 60, with the month in which such 
individual becomes so entitled.". 
Ot))(lXA) Section 223(a)(1) of such Act is amended by striking out "or 
the third month following the month in which his disability ceases." 
at the end of the first sentence and inserting in lieu thereof "or, 
subject to subsection (e), the termination month. For purposes of the 
preceding sentence, the termination month for any individual shall 
be the third month following the month in which his disability ceases; 
except that, in the case of an individual who has a period of trial work 
which ends as determined by application of section 222(cX4XA), the 
termination month shall be the earlier of (I) the third month 
following the earliest month after the end of such period of trial work 
with respect to which such individual is determined to no longer be 
suffering from a disabling physical or mental impairment, or (II) the 
third month following the earliest month in which such individual 
engages or is determined able to engage in substantial gainful 
activity, but in no event earlier than the first month occurring after 
the 15 months following such period of trial work in which he engages 
or is determined able to engage in substantial gainful activity.". 
(B) Section 202(dXlXG) of such Act is amended— 
(i) by redesignating clauses (i) and (ii) as clauses (III) and (IV), 
respectively, and 
42 u s e 422. 
42 u s e 423, 402. 
94 STAT. 452 
PUBLIC LAW 96-265—JUNE 9, 1980 
(ii) by striking out "the third month following the month in 
which he ceases to be under such disability" and inserting in lieu 
42 use 423. 
thereof ", or, subject to section 223(e), the termination month 
(and for purposes of this subparagraph, the termination month 
for any individual shall be the third month following the month 
in which his disability ceases; except that, in the case of an 
individual who has a period of trial work which ends as deter-
42 use 422. 
mined by application of section 222(c)(4)(A), the termination 
month shall be the earlier of (I) the third month following the 
earliest month after the end of such period of trial work with 
respect to which such individual is determined to no longer be 
suffering from a disabling physical or mental impairment, or (II) 
the third month following the earliest month in which such 
individual engages or is determined able to engage in substantial 
gainful activity, but in no event earlier than the first month 
occurring after the 15 months following such period of trial work 
in which he engages or is determined able to engage in substan-
tial gainful activity,". 
42 use 402. 
(C) Section 202(eXl) of such Act is amended by striking out "the 
third month following the month in which her disability ceases 
(unless she attains age 65 on or before the last day of such third 
month)." at the end thereof and inserting in lieu thereof ", subject to 
section 223(e), the termination month (unless she attains age 65 on or 
before the last day of such termination month). For purposes of the 
preceding sentence, the termination month for any individual shall 
be the third month following the month in which her disability 
ceases; except that, in the case of an individual who has a period of 
trial work which ends as determined by application of section 
222(c)(4)(A), the termination month shall be the earlier of (I) the third 
month following the earliest month after the end of such period of 
trial work with respect to which such individual is determined to no 
longer be suffering from a disabling physical or mental impairment, 
or (II) the third month following the earliest month in which such 
individual engages or is determined able to engage in substantial 
gainful activity, but in no event earlier than the first month occur-
ring after the 15 months following such period of trial work in which 
he engages or is determined able to engage in substantial gainful 
activity.". 
(D) Section 202(fKl) of such Act is amended by striking out "the 
third month following the month in which his disability ceases 
(unless he attains age 65 on or before the last day of such third 
month)." at the end thereof and inserting in lieu thereof ", subject to 
section 223(e), the termination month (unless he attains age 65 on or 
before the last day of such termination month). For purposes of the 
preceding sentence, the termination month for any individual shall 
be the third month following the month in which his disability ceases; 
except that, in the case of an individual who has a period of trial work 
which ends as determined by application of section 222(cX4XA), the 
termination month shall be the earlier of (I) the third month 
following the earliest month after the end of such period of trial work 
with respect to which such individual is determined to no longer be 
suffering from a disabling physical or mental impairment, or (II) the 
third month following the earliest month in which such individual 
engages or is determined able to engage in substantial gainful 
activity, but in no event earlier than the first month occurring after 
the 15 months following such period of trial work in which he engages 
or is determined able to engage in substantial gainful activity.". 
PUBLIC LAW 96-265—JUNE 9, 1980 
94 STAT. 453 
(2XA) Section 223 of such Act is amended by adding at the end 
thereof the following new subsection: 
"(e) No benefit shall be payable under subsection (dXl)(B)(ii), 
(eXlXBXii), or (fXlXBXii) of section 202 or under subsection (aXD of 
this section to an individual for any month, after the third month, in 
which he engages in substantial gainful activity during the 15-month 
period following the end of his trial work period determined by 
application of section 222(cX4XA).". 
(B) Section 216(iX2XD) of such Act is amended by striking out "(ii)" 
and all that follows and inserting in lieu thereof "(ii) the month 
preceding (I) the termination month (as defined in section 223(aXl)), 
or, if earlier (II) the first month for which no benefit is payable by 
reason of section 223(e), where no benefit is payable for any of the 
succeeding months during the 15-month period referred to in such 
section." 
(cXlXA) Section 1614(aX3) of such Act is amended by adding at the 
end thereof the following new subparagraph: 
"(F) For purposes of this title, an individual whose trial work period 
has ended by application of paragraph (4XDXi) shall, subject to section 
1611(eX4), nonetheless be considered (except for purposes of section 
1631(aX5)) to be disabled through the end of the month preceding the 
termination month. For purposes of the preceding sentence, the 
termination month for any individual shall be the earlier of (i) the 
earliest month after the end of such period of trial work with respect 
to which such individual is determined to no longer be suffering from 
a disabling physical or mental impairment, or (ii) the first month, 
after the period of 15 consecutive months following the end of such 
period of trial work, in which such individual engages in or is 
determined to be able to engage in substantial gainful activity.". 
(B) Section 1614(aX3XD) of such Act is amended by striking out 
"paragraph (4)" and inserting in lieu thereof "subparagraph (F) or 
paragraph (4)". 
(2) Section 1611(e) of such Act is amended by adding at the end 
thereof the following new paragraph: 
"(4) No benefit shall be payable under this title, except as provided 
in section 1619 (or section 1616(cX3)), with respect to an eligible 
individual or his eligible spouse who is an aged, blind, or disabled 
individual solely by application of section 1614(aX3XF) for any month, 
after the third month, in which he engages in substantial gainful 
activity during the fifteen-month period following the end of his trial 
work period determined by application of section 1614(aX4XDXi).". 
(d) The amendments made by this section shall become effective on 
the first day of the sixth month which begins after the date of the 
enactment of this Act, and shall apply with respect to any individual 
whose disability has not been determined to have ceased prior to such 
first day. 
42 u s e 423. 
42 u s e 402. 
42 u s e 422. 
42 u s e 416. 
42 u s e 1382c. 
42 u s e 1382. 
42 u s e 1383. 
Ante, p. 450. 
Ante, pp. 445, 
446. 
Supra. 
Effective date. 
42 u s e 402 note. 
DISABIUTY DETERMINATIONS; FEDERAL REVIEW OF STATE AGENCY 
DETERMINATIONS 
SEC. 304. (a) Section 221(a) of the Social Security Act is amended to 42 use 421. 
read as follows: 
"(aXD In the case of any individual, the determination of whether 
or not he is under a disability (as defined in section 216(i) or 223(d)) 42 use 416, 423. 
and of the day such disability began, and the determination of the day 
on which such disability ceases, shall be made by a State agency, 
notwithstanding any other provision of law, in any State that notifies 
94 STAT. 454 
PUBLIC LAW 96-265—JUNE 9, 1980 
Regulations. 
42 u s e 421. 
Disability 
determinations. 
the Secretary in writing that it wishes to make such disability 
determinations commencing with such month as the Secretary and 
the State agree upon, but only if (A) the Secretary has not found, 
under subsection (b)(1), that the State agency has substantially failed 
to make disability determinations in accordance with the applicable 
provisions of this section or rules issued thereunder, and (B) the State 
has not notified the Secretary, under subsection (bX2), that it does not 
wish to make such determinations. If the Secretary once makes the 
finding described in clause (A) of the preceding sentence, or the State 
gives the notice referred to in clause (B) of such sentence, the 
Secretary may thereafter determine whether (and, if so, beginning 
with which month and under what conditions) the State may again 
make disability determinations under this paragraph. 
"(2) The disability determinations described in paragraph (1) made 
by a State agency shall be made in accordance with the pertinent 
provisions of this title and the standards and criteria contained in 
regulations or other written guidelines of the Secretary pertaining to 
matters such as disability determinations, the class or classes of 
individuals with respect to which a State may make disability 
determinations (if it does not wish to do so with respect to all 
individuals in the State), and the conditions under which it may 
choose not to make all such determinations. In addition, the Secre-
tary shall promulgate regulations specifying, in such detail as he 
deems appropriate, performance standards and administrative 
requirements and procedures to be followed in performing the dis-
ability determination function in order to assure effective and uni-
form administration of the disability insurance program throughout 
the United States. The regulations may, for example, specify matters 
such as— 
"(A) the administrative structure and the relationship between 
various units of the State agency responsible for disability 
determinations, 
"(B) the physical location of and relationship among agency 
staff units, and other individuals or organizations performing 
tasks for the State agency, and standards for the availability to 
applicants and beneficiaries of facilities for making disability 
determinations, 
"(C) State agency performance criteria, including the rate of 
accuracy of decisions, the time periods within which determina-
tions must be made, the procedures for and the scope of review by 
the Secretary, and, as he finds appropriate, by the State, of its 
performance in individual cases and in classes of cases, and rules 
governing access of appropriate Federal officials to State offices 
and to State records relating to its administration of the disabil-
ity determination function, 
"(D) fiscal control procedures that the State agency may be 
required to adopt, and 
"(E) the submission of reports and other data, in such form and 
at such time as the Secretary may require, concerning the State 
agency's activities relating to the disability determination. 
Nothing in this section shall be construed to authorize the Secretary 
to take any action except pursuant to law or to regulations promul-
gated pursuant to law.", 
(b) Section 221(b) of such Act is amended to read as follows: 
"(b)(1) If the Secretary finds, after notice and opportunity for a 
hearing, that a State agency is substantially failing to make disability 
determinations in a manner consistent with his regulations and other 
PUBLIC LAW 96-265—JUNE 9, 1980 
94 STAT. 455 
written guidelines, the Secretary shall, not earlier than 180 days 
following his finding, and after he has complied with the require-
ments of paragraph (3), make the disability determinations referred 
to in subsection (a)(1). 
"(2) If a State, having notified the Secretary of its intent to make 
disability determinations under subsection (a)(1), no longer wishes to 
make such determinations, it shall notify the Secretary in writing of 
that fact, and, if an agency of the State is making disability determi-
nations at the time such notice is given, it shall continue to do so for 
not less than 180 days, or (if later) until the Secretary has complied 
with the requirements of paragraph (3). Thereafter, the Secretary 
shall make the disability determinations referred to in subsection 
(a)(1). 
"(3)(A) The Secretary shall develop and initiate all appropriate 
procedures to implement a plan with respect to any partial or 
complete assumption by the Secretary of the disability determination 
function from a State agency, as provided in this section, under which 
employees of the affected State agency who are capable of performing 
duties in the disability determination process for the Secretary shall, 
notwithstanding any other provision of law, have a preference over 
any other individual in filling an appropriate employment position 
with the Secretary (subject to any system established by the Secre-
tary for determining hiring priority among such employees of the 
State agency) unless any such employee is the administrator, the 
deputy administrator, or assistant administrator (or his equivalent) 
of the State agency, in which case the Secretary may accord such 
priority to such employee. 
"(B) The Secretary shall not make such assumption of the disability 
determination function until such time as the Secretary of Labor 
determines that, with respect to employees of such State agency who 
will be displaced from their emplo3mient on account of such assump-
tion by the Secretary and who will not be hired by the Secretary to 
perform duties in the disability determination process, the State has 
made fair and equitable arrangements to protect the interests of 
employees so displaced. Such protective arrangements shall include 
only those provisions which are provided under all applicable Fed-
eral, State and local statutes including, but not limited to, (i) the 
preservation of rights, privileges, and benefits (including continu-
ation of pension rights and benefits) under existing collective-
bargaining agreements; (ii) the continuation of collective-bargaining 
rights; (iii) the assignment of affected employees to other jobs or to 
retraining programs; (iv) the protection of individual employees 
against a worsening of their positions with respect to their employ-
ment; (v) the protection of health benefits and other fringe benefits; 
and (vi) the provision of severance pay, as may be necessary.". 
(c) Section 221(c) of such Act is amended to read as follows: 
"(c)(1) The Secretary may on his own motion or as required under 
paragraphs (2) and (3) review a determination, made by a State 
agency under this section, that an individual is or is not under a 
disability (as defined in section 216(i) or 223(d)) and, as a result of such 
review, may modify such agency's determination and determine that 
such individual either is or is not under a disability (as so defined) or 
that such individual's disability began on a day earlier or later than 
that determined by such agency, or that such disability ceased on a 
day earlier or later than that determined by such agency. A review by 
the Secretary on his own motion of a State agency determination 
Notification to 
Secretary. 
Assumption of 
State agency 
function. 
State agency 
employees, 
determination 
by Secretary of 
Labor. 
42 u s e 421. 
Review. 
42 u s e 416, 423. 
94 STAT. 456 
PUBLIC LAW 96-265—JUNE 9, 1980 
42 u s e 416, 423. 
42 u s e 421. 
Report to 
Congress. 
42 u s e 421 note. 
Effective date. 
42 u s e 421 note. 
State 
agreements with 
Secretary of 
Health and 
Human Services, 
notification. 
under this paragraph may be made before or after any action is taken 
to implement such determination. 
"(2) The Secretary (in accordance with paragraph (3)) shall review 
determinations, made by State agencies pursuant to this section, that 
individuals are under disabilities (as defined in section 216(i) or 
223(d)). Any review by the Secretary of a State agency determination 
under this paragraph shall be made before any action is taken to 
implement such determination. 
"(3) In carrying out the provisions of paragraph (2) with respect to 
the review of determinations, made by State agencies pursuant to 
this section, that individuals are under disabilities (as defined in 
section 216(i) or 223(d)), the Secretary shall review— 
"(A) at least 15 percent of ^1 such determinations made by 
State agencies in the 
fiscal 
year 1981, 
"(B) at least 35 percent of all such determinations made by 
State agencies in the fiscal year 1982, and 
"(C) at least 65 percent of all such determinations made by 
State agencies in any fiscal year after the fiscal year 1982. . 
(d) Section 221(d) of such Act is amended by striking out "(a)" and 
inserting in lieu thereof "(a), (b)". 
(e) The first sentence of section 221(e) of such Act is amended— 
(1) by striking out "which has an agreement with the Secre-
tary" and inserting in lieu thereof "which is making disability 
determinations under subsection (aXl)'\ 
(2) by striking out "as may be mutually agreed upon" and 
inserting in lieu thereof "as aetermined by the Secretary", and 
(3) by striking out "carrying out the agreement under this section" 
and inserting in lieu thereof "making disability determinations 
under subsection (aXl)". 
(f) Section 221(g) of 
such Act is amended— 
(1) by striking out "has no agreement under subsection (b)" and 
inserting in lieu thereof "does not undertake to perform disabil-
ity determinations under subsection (aXD* or which has been 
found by the Secretaiy to have substantially failed to make 
disability determinations in a manner consistent with his regula-
tions and guidelines", and 
(2) by striking out "not included in an agreement under 
subsection (b)" and inserting in lieu thereof "for whom no State 
undertakes to make disability determinations". 
(g) The Secretary of Health and Himian Services shall implement a 
program of reviewing, on his own motion, decisions rendered by 
administrative law judges as a result of hearings under section 221(a) 
of the Social Security Act, and shall report to the Congress by 
January 1,1982, on his progress. 
(h) The amendments made by subsections (a), (b), (d), (e), and (f) 
shall be effective beginning with the twelfth month following the 
month in which this Act is enacted. Any State that, on the effective 
date of the amendments made by this section, has in effect an 
agreement with the Secreta^ of Health and Human Services under 
section 221(a) of the Social Security Act (as in effect prior to such 
amendments) will be deemed to have given to the Secretary the 
notice specified in section 221(aXl) of such Act as amended by this 
section, in lieu of continuing such agreement in effect after the 
effective date of such amendments. Thereafter, a State may notify 
the Secretary in writing that it no longer wishes to make disability 
determinations, effective not less than 180 days after the notification 
is given. 
PUBLIC LAW 96-265—JUNE 9, 1980 
94 STAT. 457 
(i) The Secretary of Health and Human Services shall submit to the p^n, submittal 
Congress by July 1,1980, a detailed plan on how he expects to assume J" us(?42?note 
the functions and operations of a State disability determination unit 
when this becomes necessary under the amendments made by this 
section, and how he intends to meet the requirements of section 
221(bX3) of the Social Security Act. Such plan should assume the 4
2 use 42i. 
uninterrupted operation of the disability determination function and 
the utilization of the best qualified personnel to carry out such 
function. If any amendment of Federal law or regulation is required 
to carry out such plan, recommendations for such amendment should 
be included in the report. 
INFORMATION TO ACCOMPANY SECRETARY S DECISIONS 
42 u s e 405. 
SEC. 305. (a) Section 205(b) of the Social Security Act is amended by 
inserting after the first sentence the following new sentence: "Any 
such decision by the Secretary which involves a determination of 
disability and which is in whole or in part unfavorable to such 
individual shall contain a statement of the case, in understandable 
language, setting forth a discussion of the evidence, and stating the 
Secretary's determination and the reason or reasons upon which it is 
based.". 
(b) Section 1631(cXl) of such Act is amended by inserting after the 4
2 use 1383. 
first sentence thereof the following new sentence: "Any such decision 
by the Secretary which involves a determination of disability and 
which is in whole or in part unfavorable to such individuad shall 
contain a statement of the case, in understandable language, setting 
forth a discussion of the evidence, and stating the Secretary's deter-
mination and the reason or reasons upon which it is based.". 
(c) The amendments made by this section shall apply with respect 4
2 use 405 note. 
to decisions made on or after the first day of the 13th month following 
the month in which this Act is enacted. 
UMITATION ON PROSPECTIVE EFFECT OF APPLICATION 
SEC. 306. (a) Section 202(jX2) of the Social Security Act is amended 4
2 use 402. 
to read as follows: 
"(2) An application for any monthly benefits under this section 
filed before the first month in which the applicant satisfies the 
requirements for such benefits shall be deemed a valid application 
(and shall be deemed to have been filed in such first month) only if the 
applicant satisfies the requirements for such benefits before the 
Secretary makes a final decision on the application and no request 
under section 205(b) for notice and opportunity for a hearing thereon 4
2 use 405. 
is made or, if such a request is made, before a decision based upon the 
evidence adduced at the hearing is made (regardless of whether such 
decision becomes the final decision of the Secretary).". 
(b) Section 216(iX2XG) of such Act is amended— 
42 use 416. 
(1) by inserting "(and shall be deemed to have been filed on 
such first day)" immediately after "shall be deemed a valid 
application" in the first sentence, 
(2) by striking out the period at the end of the first sentence 
and inserting in lieu thereof "and no request under section 205(b) 
for notice and opportunity for a hearing thereon is made or, if 
such a request is made, before a decision based upon the evidence 
adduced at the hearing is made (regardless of whether such 
decision becomes the final decision of the Secretary).", and 
94 STAT. 458 
PUBLIC LAW 96-265—JUNE 9, 1980 
(3) by striking out the second sentence. 
42 use 423. 
(c) Sectlon 223(b) of such Act is amended— 
(1) by inserting "(and shall be deemed to have been filed in 
such first month)" immediately after "shall be deemed a valid 
application" in the first sentence, 
(2) by striking out the period at the end of the first sentence 
and inserting in lieu thereof "and no request under section 205(b) 
for notice and opportunity for a hearing thereon is made, or if 
such a request is made, before a decision based upon the evidence 
adduced at the hearing is made (regardless of whether such 
decision becomes the final decision of the Secretary).", and 
(3) by striking out the second sentence. 
42 use 402 note. 
(d) The amendments made by this section shall apply to applica-
tions filed after the month in which this Act is enacted. 
UMITATION ON COURT REMANDS 
SEC. 307. The sixth sentence of section 205(g) of the Social Security 
42 use 405. 
Act is amended by striking out all that precedes "and the Secretary 
shall" and inserting in lieu thereof the following: "The court may, on 
motion of the Secretary made for good cause shown before he files his 
answer, remand the case to the Secretary for further action by the 
Secretary, gmd it may at any time order additional evidence to be 
taken before the Secretary, but only upon a showing that there is new 
evidence which is material and that there is good cause for the failure 
to incorporate such evidence into the record in a prior proceeding;". 
TIME UMITATIONS FOR DECISIONS ON BENEFIT CLAIMS 
Report to 
SEC. 308. The Secretary of Health and Human Services shall 
Congress. 
submit to the Congress, no later than July 1, 1980, a report recom-
42 use 401 note, mending the establishment of appropriate time limitations governing 
42 use 401. 
decisions on claims for benefits under title II of the Social Security 
Act. Such report shall specifically recommend— 
(1) the maximum period of time (after application for a pay-
ment under such title is filed) within which the initial decision of 
the Secretary as to the rights of the applicant should be made; 
(2) the maximum period of time (after application for reconsid-
eration of any decision described in paragraph (1) is filed) within 
which a decision of the Secretary on such reconsideration should 
be made; 
(3) the maximum period of time (after a request for a hearing 
with respect to any decision described in paragraph (1) is filed) 
within which a decision of the Secretary upon such hearing 
(whether affirming, modifying, or reversing such decision) should 
be made; and 
(4) the maximum period of time (after a request for review by 
the Appeals Council with respect to any decision described in 
paragraph (1) is made) within which the decision of the Secretary 
upon such review (whether affirming, modifying, or reversing 
such decision) should be made. 
In determining the time limitations to be recommended, the Secre-
tary shall take into account both the need for expeditious processing 
of claims for benefits and the need to assure that all such claims will 
be thoroughly considered and accurately determined. 
PUBLIC LAW 96-265—JUNE 9, 1980 
94 STAT. 459 
PAYMENT FOR EXISTING MEDICAL EVIDENCE 
SEC. 309. (a) Section 223(d)(5) of the Social Security Act is amended 42 use 423. 
by adding at the end thereof the following new sentence: "Any non-
Federal hospital, clinic, laboratory, or other provider of medical 
services, or physician not in the employ of the Federal Government, 
which supplies medical evidence required and requested by the 
Secretary under this paragraph shall be entitled to payment from the 
Secretary for the reasonable cost of providing such evidence.". 
(b) The amendment made by subsection (a) shall apply with respect 42 use 423 note. 
to evidence requested on or after the first day of the sixth month 
which begins after the date of the enactment of this Act. 
PAYMENT OF CERTAIN TRAVEL EXPENSES 
SEC. 310. (a) Section 201 of the Social Security Act is amended by 42 use 401. 
adding at the end thereof the following new subsection: 
"(j) There are authorized to be made available for expenditure, out 
of the Federal Old-Age and Survivors Insurance Trust Fund, or the 
Federal Disability Insurance Trust Fund (as determined appropriate 
by the Secretary), such amounts as are required to pay travel 
expenses, either on an actual cost or commuted basis, to individuals 
for travel incident to medical examinations requested by the Secre-
tary in connection with disability determinations under this title, and 
to parties, their representatives, and all reasonably necessary wit-
nesses for travel within the United States (as defined in section 210(i)) 42 use 410. 
to attend reconsideration interviews and proceedings before adminis-
trative law judges with respect to any determination under this title. 
The amount available under the preceding sentence for pa3rment for 
air travel by any person shall not exceed the coach fare for air travel 
between the points involved unless the use of first-class accommoda-
tions is required (as determined under regulations of the Secretary) 
because of such person's health condition or the unavailability of 
alternative accommodations; and the amount available for payment 
for other travel by any person shall not exceed the cost of travel 
(between the points involved) by the most economical and expeditious 
means of transportation appropriate to such person's health condi-
tion, as specified in such regulations.". 
(b) Section 1631 of such Act is amended by adding at the end thereof 42 use 1383. 
the following new subsection: 
"Pa)nment of Certain Travel Expenses 
"(h) The Secretary shall pay travel expenses, either on an actual 
cost or commuted basis, to individuals for travel incident to medical 
examinations requested by the Secretary in connection with disabil-
ity determinations under this title, and to parties, their representa-
tives, and all reasonably necessary witnesses for travel within the 
United States (as defined in section 1614(e)) to attend reconsideration 42 use I382c. 
interviews and proceedings before administrative law judges with 
respect to any determination under this title. The amount available 
under the preceding sentence for payment for air travel by any 
person shall not exceed the coach fare for air travel between the 
points involved unless the use of first-class accommodations is 
required (as determined under regulations of the Secretary) because 
of such person's health condition or the unavailability of ^ternative 
accommodations; and the amount available for pajnnent for other 
travel by any person shall not exceed the cost of travel (between the 
94 STAT. 460 
PUBLIC LAW 96-265—JUNE 9, 1980 
42 u s e 13951. 
Travel expenses, 
authorized trust 
fund payments. 
42 u s e 410. 
points involved) by the most economical and expeditious means of 
transportation appropriate to such person's health condition, as 
specified in such regulations.". 
(c) Section 1817 of such Act is amended by adding at the end thereof 
the following new subsection: 
"(i) There are authorized to be made available for expenditure out 
of the Trust Fund such amounts as are required to pay travel 
expenses, either on an actual cost or commuted basis, to parties, their 
representatives, and all reasonably necessary witnesses for travel 
within the United States (as defined in section 210(i)) to attend 
reconsideration interviews and proceedings before administrative 
law judges with respect to any determination under this title. The 
amount available under the preceding sentence for payment for air 
travel by any person shall not exceed the coach fare for air travel 
between the points involved unless the use of first-class accommoda-
tions is required (as determined under regulations of the Secretary) 
because of such person's health condition or the unavailability of 
alternative accommodations; and the amount available for payment 
for other travel by any person shall not exceed the cost of travel 
(between the points involved) by the most economical and expeditious 
means of transportation appropriate to such person's health condi-
tion, as specified in such regulations.". 
42 u s e 421. 
Effective date. 
42 u s e 421 note. 
Submittal to 
Congress. 
42 u s e 401 note. 
PERIODIC REVIEW OF DISABIUTY DETERMINATIONS 
SEC. 311. (a) Section 221 of the Social Security Act is amended by 
adding at the end thereof the following new subsection: 
"(i) In any case where an individual is or has been determined to be 
under a disability, the case shall be reviewed by the applicable State 
agency or the Secretary (as may be appropriate), for purposes of 
continuing eligibility, at least once every 3 years; except that where a 
finding has been made that such disability is permanent, such 
reviews shall be made at such times as the Secretary determines to be 
appropriate. Reviews of cases under the preceding sentence shall be 
in addition to, and shall not be considered as a substitute for, any 
other reviews which are required or provided for under or in the 
administration of this title.". 
(b) The amendment made by subsection (a) shall become effective 
on January 1,1982. 
REPORT BY SECRETARY 
SEC. 312. The Secretary of Health and Human Services shall 
submit to the Congress not later than January 1, 1985, a full and 
complete report as to the effects produced by reason of the preceding 
provisions of this Act and the amendments made thereby. 
TITLE IV—PROVISIONS RELATING TO AFDC AND CHILD 
SUPPORT PROGRAMS 
WORK REQUIREMENT UNDER THE AFDC PROGRAM 
42 use 602. 
SEC. 401. (a) Section 402(aX19XA) of the Social Security Act is 
amended— 
(1) by striking out all that follows "(A)" and precedes clause (i), 
and inserting in lieu thereof the following: "that every indi-
vidual, as a condition of eligibility for aid under this part, shall 
42 use 633. 
PUBLIC LAW 96-265—JUNE 9, 1980 
94 STAT. 461 
register for manpower services, training, employment, and other 
employment-related activities (including employment search, 
not to exceed eight weeks in total in each year) with the 
Secretary of Labor as provided by regulations issued by him, 
unless such individual is—"; 
(2) by striking out "or" at the end of clause (v); 
(3) by striking out "under section 433(g)" in clause (vi); 
(4) by adding "or" after the semicolon at the end of clause (vi); 
and 
(5) by inserting after clause (vi) the following new clause: 
"(vii) a person who is working not less than 30 hours 
per week;'. 
(b) Section 402(a)(19XB) of such Act is amended by inserting "to 42 USC 602. 
families with dependent children" immediately after "that aid". 
(c) Section 402(aX19)(D) of such Act is amended by striking out ", 
and income derived from a special work project under the program 
established by section 432(bX3)". 
42 use 632. 
(d) Section 402(aX19XF) of such Act is amended— 
(1) by striking out, "and for so long as any child, relative, or 
individual (certified to the Secretary of Labor pursuant to sub-
paragraph (G))" in the matter preceding clause (i), and inserting 
in lieu thereof "(and for such period as is prescribed under joint 
regulations of the Secretary and the Secretary of Labor) any 
child, relative or individual"; and 
(2) by inserting "and" after the semicolon at the end of clause 
(iv), and striking out all that follows. 
(e) Section 402(aX19XG) of such Act is amended— 
(1) by inserting "(which will, to the maximum extent feasible, 
be located in the same facility as that utilized for the administra-
tion of programs established pursuant to section 4320t>) (1), (2), or 
(3))" immediately after "administrative unit" in clause (i); 
(2) by striking out "subparagraph (A)," in clause (ii), and 
inserting in lieu thereof "subparagraph (A) of this paragraph (I)"; 
(3) by striking out "part C" where it first appears in clause (ii) 
and inserting in lieu thereof "section 43203) (1), (2), or (3)"; and 
(4) by striking out "employment or training under part C," in 
clause (ii) and inserting in lieu thereof "emplo)mient or training 
under section 43203) (1), (2), or (3), (II) such social and supportive 
services as are necessary to enable such individuals as deter-
mined appropriate by the Secretary of Labor actively to engage 
in other emplo5TTient-related (including but not limited to 
employment search) activities, as well as timely pajmient for 
necessary employment search expenses, and (III) for a period 
deemed appropriate by the Secretary of Labor after such an 
individual accepts employment, such social and supportive serv-
ices as are reasonable and necessary to enable him to retain 
such emplojonent,". 
(f) Section 402(aX19) of such Act is further amended— 
(1) by striking out "and" at the end of subparagraph (F); 
(2) by adding "and" after the semicolon at the end of subpara-
graph (G); and 
(3) by adding after subparagraph (G) the following new 
subparagraph: 
"(H) that an individual participating in emplojmient 
search activities shall not be referred to emplojrment oppor-
tunities which do not meet the criteria for appropriate work 
94 STAT. 462 
PUBLIC LAW 96-265—JUNE 9, 1980 
42 use 632. 
42 use 603. 
and training to which an individual may otherwise be 
assigned under section 432(b) (1), (2), or (3);". 
(g) Section 403(c) of such Act is amended by striking out "part C" 
and inserting m lieu thereof ''section 432(b) (1), (2), or (3)". 
(h) Section 403(dXl) of such Act is amended by adding at the end 
thereof the following new sentence: "In determining the amount of 
the expenditures made under a State i>lan for any quarter with 
respect to social and supportive services pursuant to section 
402(aX19XG), there shall be mcluded the fair and reasonable v^ue of 
goods and services furnished in kind from the State or any political 
subdivision thereof". 
42 use 602 note. 
(i) The amendments made by this section (other than those made by 
subsections (c) and (d)) shall take effect on September 30,1980, and 
the joint r^ulations referred to in section 402(aX19)(F) of the SocisQ 
Security Act (as amended by this section) shall be promulgated on or 
before such date, and take effect on such date. 
Ante, p. 461. 
Ante, p. 461. 
42 u s e 652. 
42 use 654. 
Effective date. 
42 use 652 note. 
USE OF INTERNAL REVENUE SERVICE TO COLLECT CHILD SUPPORT FOR 
NON-AFDC FAMILIES 
SEC. 402. (a) The first sentence of section 452(b) of the Social 
Security Act is amended by inserting "(or undertaken to be collected 
by such State pursuant to section 454(6))" immediately after 
"assigned to such State". 
(b) The amendment made by subsection (a) shall take effect July 1, 
1980. 
SAFEGUARDS RESTRICTING DISCLOSURE OF CERTAIN INFORlifATION 
UNDER AFDC AND SOCIAL SERVICE PROGRAMS 
42 use 602. 
SEC. 403. (a) Section 402(aX9) of the Social Security Act is 
amended— 
(1) by striking out "and" at the end of 
clause (B); and 
(2) by striking out "; and the safeguards" and all that follows 
and inserting in lieu thereof the following:", and (D) any audit or 
similar activity conducted in connection with the administration 
of 
any such plan or program by any governmental entity which is 
authorized by law to conduct such audit or activity; and the 
safeguards so provided shall prohibit disclosure, to any commit-
tee or legislative body (other than an entity referred to in clause 
(D) with respect to an activity referred to m such clause), of any 
information which identifies by name or address any such 
applicant or recipient;". 
42 use 1397b. 
(b) Section 2003(dXlXB) of 
such Act is amended— 
(1) by striking out "provides that" and inserting in lieu thereof 
"provides saf^uards which restrict"; 
(2) by striking out "will be restricted"; 
(3) by inserting "(A)" after "connected with"; and 
(4) by inserting before the semicolon at the end thereof the 
foUowinjg: ", and (B) any audit or similar activity conducted in 
connection with the administration of any such ^lan or program 
by any governmental entity which is authorized by law to 
conduct such audit or activity; and the safeguards so provided 
shall prohibit disclosure, to any committee or legislative body 
(other than an entity referred to in clause (B) with respect to an 
activity referred to in such clause), of any information which 
identifies by name or address any such applicant or recipient;". 
PUBLIC LAW 96-265—JUNE 9, 1980 
94 STAT. 463 
(c) The amendments made by this section shall take effect on ^fff^jy^^f*^-
September 1,1980. 
42 use 602 note. 
FEDERAL MATCHING FOR CHILD SUPPORT DUTIES PERFORMED BY 
CERTAIN COURT PERSONNEL 
SEC. 404. (a) Section 455 of the Social Security Act is amended by 
adding at the end thereof the following new subsection: 
"(c)(1) Subject to paragraph (2), there shall be included, in deter-
mining amounts expended by a State during any quarter for the 
operation of the plan approved under section 454, so much of the 
expenditures of courts of such State and its political subdivisions 
(excluding expenditures for or in connection with judges and other 
individuals making judicial determinations, but not excluding 
expenditures for or in connection with their administrative and 
support personnel) as are attributable to the performance of services 
which are directly related to, and clearly identifiable with, the 
operation of such plan. 
"(2) The aggregate amount of the expenditures which are included 
pursuant to paragraph (1) for the quarters in any calendar year shall 
be reduced (but not below zero) by the total amount of expenditures 
described in paragraph (1) which were made by the State for the 12-
month period beginning January 1,1978. 
"(3) The State agency may, if the law (or procedures established 
thereunder) of the State so provides, pay so much of the amount it 
receives under subsection (a) for any quarter as is payable by reason 
of the provisions of this subsection directly to the courts of the State 
(or political subdiAdsions thereof) furnishing the services on account 
of which the payment is payable.", 
(b) The amendment made by subsection (a) shall apply with respect 
to expenditures made by States on or after July 1,1980. 
CHILD SUPPORT MANAGEMENT INFORMATION SYSTEM 
42 u s e 655. 
42 u s e 654. 
Effective date. 
42 u s e 655 note. 
42 u s e 655. 
SEC 405. (a) Section 455(a) of the Social Security Act is amended^ 
(1) by striking out "and" at the end of paragraph (1); 
(2) by striking out the period at the end of paragraph (2) and 
inserting in lieu thereof", and "; and 
(3) by adding after and below paragraph (2) the following new 
paragraph; 
"(3) equal to 90 percent (rather than the percent specified in 
clause (1) or (2)) of so much of the sums expended during such 
quarter as are attributable to the planning, design, development, 
installation or enhancement of an automatic data processing and 
information retrieval system which the Secretary finds meets 
the requirements specified in section 454(16);". 
O
t
>
) Section 454 of such Act is amended— 
(1) by striking out "and" at the end of paragraph (14), 
(2) by striking out the period at the end of paragraph (15) and 
inserting in lieu thereof ; and", and 
(3) by adding after paragraph (15) the following new 
paragraph: 
"(16) provide, at the option of the State, for the establishment, 
in accordance with an (initial and annually updated) advance 
automatic data processing planning document approved under 
section 452(d), of an automatic data processing and information Post, p. 4
6
4 
retrieval system designed effectively and efficiently to assist 
Automatic data 
processing and 
information 
retrieval system. 
Infra. 
42 u s e 654. 
79-194 O—81—pt. 1 
33 : QL3 
94 STAT. 464 
PUBLIC LAW 96-265—JUNE 9, 1980 
management in the administration of the State plan, in the State 
and localities thereof, so as (A) to control, account for, and 
monitor (i) all the factors in the child support enforcement 
collection and paternity determination process under such plan 
(including, but not limited to, (I) identifiable correlation factors 
(such as social security numbers, names, dates of birth, home 
addresses and mailing addresses (including postal ZIP codes) of 
any individual with respect to whom child support obligations 
are sought to be established or enforced and with respect to any 
person to whom such support obligations are owing) to assure 
sufficient compatibility among the systems of different jurisdic-
tions to permit periodic screening to determine whether such 
individual is paying or is obligated to pay child support in more 
than one jurisdiction, (II) checking of records of such individuals 
on a periodic basis with Federal, intra- and inter-State, and local 
agencies, (III) maintaining the data necessary to meet the Fed-
eral reporting requirements on a timely basis, and (IV) delin-
quency and enforcement activities), (ii) the collection and 
distribution of support pa)mients (both intra- and inter-State), the 
determination, collection and distribution, of incentive payments 
both inter- and intra-State, and the maintenance of accounts 
receivable on all amounts owed, collected and distributed, and 
(iii) the costs of all services rendered, either directly or by 
interfacing with State financial management and expenditure 
information, (B) to provide interface with records of the State's 
aid to families with dependent children program in order to 
determine if a collection of a support payment causes a change 
affecting eligibility for or the amount of aid under such program, 
(C) to provide for security against unauthorized access to, or use 
of, the data in such system, and (D) to provide management 
information on all cases under the State plan from initial 
referral or application through collection and enforcement.". 
42 use 652. 
(c) Section 452 of such Act is amended by adding at the end thereof 
the following new subsection: 
"(dXD The Secretary shall not approve the initial and annually 
updated advance automatic data processing planning document. 
Ante, p. 463. 
referred to in section 454(16), unless he finds that such document, 
when implemented, will generally carry out the objectives of the 
management system referred to in such subsection, and such 
document— 
"(A) provides for the conduct of, aild reflects the results of, 
requirements analysis studies, which include consideration of 
the program mission, functions, organization, services, con-
straints, and current support, of, in, or relating to, such system, 
"(B) contains a description of the proposed management 
Ante, p. 463. 
system referred to in section 455(aX3), including a description of 
information flows, input data, and output reports and uses, 
"(C) sets forth the security and interface requirements to be 
employed in such management system, 
"(D) describes the projected resource requirements for staff 
and other needs, and the resources available or expected to be 
available to meet such requirements, 
"(E) contains an implementation plan and backup procedures 
to handle possible failures, 
"(F) contains a summary of proposed improvement of such 
management system in terms of qualitative and quantitative 
benefits, and 
PUBLIC LAW 96-265—JUNE 9, 1980 
94 STAT. 465 
Ante, p. 463. 
"(G) provides such other information as the Secretary deter-
mines under regulation is necessary. 
"(2XA) The Secretary shall through the separate organizational 
unit established pursuant to subsection (a), on a continuing basis, 
review, Eissess, and inspect the planning, design, and operation of, 
management information systems referred to in section 455(aX3), ^^te, p. 463 
with a view to determining whether, and to what extent, such 
systems meet and continue to meet requirements imposed under 
paragraph (1) and the conditions specified under section 454(16). 
"(B) If the Secretary finds with respect to any statewide manage-
ment information system referred to in section 455(aX3) that there is 
a failure substantially to comply with criteria, requirements, and 
other undertakings, prescribed by the advance automatic data proc-
essing planning document theretofore approved by the Secretary 
with respect to such system, then the Secretary shall suspend his 
approval of such document until there is no longer any such failure of 
such system to comply with such criteria, requirements, and other 
undertakings so prescribed.". 
(d) Section 452 of the Social Security Act is further amended by 
adding after subsection (d) (as added by subsection (c) of this section) Ante, p. 464. 
the following new subsection: 
"(e) The Secretary shall provide such technical assistance to States 
as he determines necessary to assist States to plan, design, develop, or 
install and provide for the security of, the management information 
systems referred to in section 455(aX3).". 
(e) The amendments made by this section shall take effect on July 
1, 1981, and shall be effective only with respect to expenditures, 
referred to in section 455(aX3) of the Social Security Act (as amended 
by this Act), made on or after such date. 
Technical 
assistance to 
States. 
Effective date. 
42 u s e 652 note. 
AFDC MANAGEMENT INFORMATION SYSTEM 
SEC. 406. (a) Section 403(aX3) of the Social Security Act is 42 use 603. 
amended— 
(1) by striking out "and" at the end of subparagraph (A); 
(2) by redesignating subparagraph (B) as subparagraph (C); and 
(3) by inserting after subparagraph (A) the following new 
subparagraph: 
"(B) 90 per centum of so much of the sums expended 
during such quarter as are attributable to the planning, 
design, development, or installation of such statewide 
mechanized claims processing and information retrieval 
systems as (i) meet the conditions of section 402(aX30), and Wra-
(ii) the Secretary determines are likely to provide more 
efficient, economical, and effective administration of the 
plan and to be compatible with the claims processing and 
information retrieval systems utilized in the administration 
of State plans approved under title XIX, and State programs 42 use 1396. 
with respect to which there is Federal financial participation 
under title XX, and". 
42 use 1397. 
(bXD Section 402(a) of such Act is amended— 
42 use 602. 
(A) by striking out "and" at the end of 
paragraph (28); 
(B) by striking out the period at the end of paragraph (29) and 
inserting in lieu thereof "; and"; and 
(C) by adding after paragraph (29) the following new 
paragraph: 
94 STAT. 466 
PUBLIC LAW 96-265—JUNE 9, 1980 
"(30) at the option of the State, provide for the establishment 
and operation, in accordance with an (initial and annually 
updated) advance automatic data processing planning document 
approved under subsection (d), of an automated statewide man-
agement information system designed effectively and efficiently, 
to assist management in the administration of the State plan for 
aid to families with dependent children approved under this part, 
so as (A) to control and account for (i) all the factors in the total 
eligibility determination process under such plan for aid (includ-
ing but not limited to (1) identifiable correlation factors (such as 
social security numbers, names, dates of birth, home addresses, 
and mailing addresses (including postal ZIP codes), of all appli-
cants and recipients of such aid and the relative with whom any 
child who is such an applicant or recipient is living) to assure 
sufficient compatibility among the systems of different jurisdic-
tions to permit periodic screening to determine whether an 
individual is or has been receiving benefits from more than one 
jurisdiction, (II) checking records of applicants and recipients of 
such aid on a periodic basis with other agencies, both intra- and 
inter-State, for determination and verification of eligibility and 
payment pursuant to requirements imposed by other provisions 
of this Act), (ii) the costs, quality, and delivery of funds and 
services furnished to applicants for and recipients of such aid, (B) 
to notify the appropriate officials of child support, food stamp, 
social service, and medical assistance programs approved under 
42 use 1396. 
title XIX whenever the case becomes ineligible or the amount of 
aid or services is changed, and (C) to provide for security against 
unauthorized access to, or use of, the data in such system.". 
42 use 602. 
(2) Section 402 of such Act is further amended by adding at the end 
thereof the following new subsection: 
"(dXD The Secretary shall not approve the initial and annually 
updated advance automatic data processing planning document, 
Ante, p. 465. 
referred to in subsection (aX30), unless he finds that such document, 
when implemented, will generally carry out the objectives of the 
statewide management system referred to in such subsection, and 
such document— 
"(A) provides for the conduct of, and reflects the results of, 
requirements analysis studies, which include consideration of 
the program mission, functions, organization, services, con-
straints, and current support, of, in, or relating to, such system, 
"(B) contains a description of the proposed statewide manage-
ment system, including a description of information flows, input 
data, and output reports and uses, 
"(C) sets forth the security and interface requirements to be 
employed in such statewide management system, 
"(D) describes the projected resource requirements for staff 
and other needs, and the resources available or expected to be 
available to meet such requirements, 
"(E) includes cost-benefit analyses of each alternative manage-
ment system, data processing services and equipment, and a cost 
allocation plan containing the basis for rates, both direct and 
indirect, to be in effect under such statewide management 
system, 
"(F) contains an implementation plan with charts of develop-
ment events, testing descriptions, proposed acceptance criteria, 
and backup and fallback procedures to handle possible failure of 
contingencies, and 
PUBLIC LAW 96-265-JUNE 9, 1980 
94 STAT. 467 
"(G) contains a summary of proposed improvement of such 
statewide management system in terms of qualitative and quan-
titative benefits. 
"(2XA) The Secretary shall, on a continuing basis, review, assess, 
and inspect the planning, design, and operation of, statewide manage-
ment information systems referred to in section 403(aX3XB), with a Ante, p. 465. 
view to determining whether, and to what extent, such systems meet 
and continue to meet requirements impcKsed under such section and 
the conditions specified under subsection (aX30) of this section. Ante, p. 465. 
"(B) If the Secretary finds with respect to any statewide manage-
ment information system referred to in section 403(aX3)(B) that there 
is a failure substantially to comply with criteria, requirements, and 
other undertakings, prescribed by the advance automatic data proc-
essing planning document theretofore approved by the Secretary 
with respect to such system, then the Secretary shall suspend his 
approval of such document until there is no longer any such failure of 
such system to comply with such criteria, requirements, and other 
undertakings so prescribed.". 
(c) Part A of title IV of such Act is amended by adding at the end 
thereof the following new section: 
"TECHNICAL ASSISTANCE FOR DEVELOPING MANAGEMENT INFORMATION 
SYSTEMS 
"SEC. 413. The Secretary shall provide such technical assistance to 42 use 613. 
States as he determines necessary to assist States to plan, design, 
develop, or install and provide for the security of, the management 
information systems referred to in section 403(aX3)(B) of this Act.". Ante, p. 465. 
(d) The amendments made by this section shall be effective with Effective date. 
respect to expenditures made during calendar quarters beginning on 42 use 6i3 note. 
or after July 1,1981. 
CHILD SUPPORT REPORTING AND MATCHING PROCEDURES 
SEC. 407. (a) Section 455(bX2) of the Social Security Act is amended 42 use 655. 
by striking out "The Secretary" and inserting in lieu thereof "Subject 
to subsection (d), the Secretaiy". 
(b) Section 455 of such Act is further amended by adding after 
subsection (c) (as added by section 404 of this Act) the following new Ante, p. 463. 
subsection: 
"(d) Notwithstanding any other provision of law, no amount shall 
be paid to any State under this section for any quarter, prior to the 
close of such quarter, unless for the period consisting of all prior 
quarters for which pavment is authorized to be made to such State 
under subsection (a), there shall have been submitted by the State to 
the Secretary, with respect to each quarter in such period (other than 
the last two quarters in such period), a full and complete report (in 
such form and manner and containing such information as the 
Secretary shall prescribe or require) as to the amount of 
child support 
collected and disbursed and all expenditures with respect to which 
payment is authorized under subsection (a).". 
(c) Section 403(bX2) of 
such Act is amended— 
42 use 603. 
(1) by striking out "and" at the end of 
clause (A); and 
(2) by adding immediately before the semicolon at the end of 
clause (B) the following: ", and (C) reduced by such amount as is 
necessary to provide the 'appropriate reimbursement of the 
Federal Government' that the State is required to make under 
94 STAT. 468 
PUBLIC LAW 96-265—JUNE 9, 1980 
42 use 657. 
Effective date. 
42 use 603 note. 
section 457 out of that portion of child support collections 
retained by it pursuant to such section", 
(d) The amendments made by this section shall be effective in the 
case of calendar quarters commencing on or after January 1, 1981. 
26 use 6103. 
26 use 1402. 
26 use 3121, 
3401. 
"ehild support 
obligations." 
42 use 654. 
42 use 651. 
26 use 6103. 
Effective date. 
26 use 6103 
note. 
42 use 503. 
ACCESS TO WAGE INFORMATION FOR PURPOSES OP CARRYING OUT STATE 
PLANS FOR CHILD SUPPORT 
SEC. 408. (aXD Subsection (1) of 
section 6103 of 
the Internal Revenue 
C!ode of 1954 (relating to disclosure of returns and return information 
for purposes other than tax administration) is amended by adding at 
the end thereof the following new paragraph: 
"(7) DISCLOSURE OF CERTAIN RETURN INFORMATION BY SOCIAL 
SECURITY ADMINISTRATION TO STATE AND LOCAL CHILD SUPPORT 
ENFORCEMENT AGENCIES.— 
"(A) IN GENERAL.—Upon written request, the Commis-
sioner of Social Security shall disclose directly to officers and 
employees of a State or local child support enforcement 
agency return information from returns with respect to net 
earnings from self-employment (as defined in section 1402), 
wages (as defined in section 3121(a) or 3401(a)), and payments 
of retirement income which have been disclosed to the Social 
Security Administration as provided by paragraph (1) or (5) 
of 
this subsection. 
"(B) RESTRICTION ON DISCLOSURE.—The Commissioner of 
Social Security shall disclose return information under sub-
paragraph (A) only for purposes of, and to the extent neces-
sary in, establishing and collecting child support obligations 
from, and locating, individuals owing such obligations. For 
purposes of the preceding sentence, the term 'child support 
obligations' only includes obligations which are being 
enforced pursuant to a plan described in section 454 of the 
Social Security Act which has been approved by the Secre-
taiy of Health and Human Services under part D of title IV 
of 
such Act. 
"(C) STATE OR LOCAL CHILD SUPPORT ENFORCEMENT 
AGENCY.—For purposes of this paragraph, the term 'State or 
local child support enforcement agency' means any agency 
of a State or political subdivision thereof operating pursuant 
to a plan described in subparagraph (B)." 
(2XA) Subparagraph (A) of section 6103(pX3) of such Code (relating 
to records of inspection and disclosure) is amended by striking out 
"aXD or (4XB) or (5)" and inserting in lieu thereof "aXD, (4XB), (5), or 
(7)". 
(B) Paragraph (4) of section 6103(p) of such Code (relating to 
safi^uards) is amended by striking out "(1X3) or (6)" in so much of 
such paragraph as precedes subparagraph (A) thereof and inserting 
in Ueu thereof "aX3), (6), or (7)". 
(C) Qause (i) of section 6103(pX4XF) of such Code is amended by 
striking out "0X6)" and inserting in lieu thereof "aX6) or (7) . 
(D) The first sentence of paragraph (2) of section 7213(a) of such 
Code is amended by striking out "subsection (d), (1X6), or (mX4)(B)" 
and inserting in lieu thereof "subsection (d), (1X6) or (7), or (m)(4)(B)". 
(3) The amendments made by this subsection shall take effect on 
the date of 
the enactment of 
this Act. 
0>X1) Section 303 of 
the Social Security Act is amended by adding at 
the end thereof 
the following new subsection: 
PUBLIC LAW 96-265—JUNE 9, 1980 
94 STAT. 469 
"(dXD The State agency charged with the administration of the 
State law— 
"(A) shall disclose, upon request and on a reimbursable basis, 
directly to oflEicers or employees of any State or local child 
support enforcement agency any wage information contained in 
the records of 
such State agency, and 
"(B) shall establish such safeguards as are necessary (as 
determined by the Secretary of Labor in regulations) to insure 
that information disclosed under subparagrai>h (A) is used only 
for purposes of establishing and collecting child support obliga-
tions from, and locating, individuals owing such obligations. 
For purposes of the preceding sentence, the term 'child support 
obligations' only includes obligations which are being enforced pursu-
ant to a plan described in section 454 of this Act which has been 
approved by the Secretary of Health and Human Services under part 
D of 
title IV of 
this Act. 
"(2) Whenever the Secretary of Labor, after reasonable notice and 
opportunity for hearing to the State agency charged with the admin-
istration of the State law, finds that there is a failure to comply 
substantially with the requirements of 
paragraph (1), the Secretary of 
Labor shall notify such State agen(^ that 
rarther 
payments will not 
be made to the State until he is satisfied that there is no longer any 
such failure. Until the Secretary of Labor is so satisfied, he shall 
make no further certification to the Secretary of the Treasury with 
respect to such State. 
"(3) For purposes of this subsection, the term 'State or local child 
support enforcement agency* means any agency of a State or political 
subdivision thereof operating pursuant to a plan described in the last 
sentence of 
paragraph (1)." 
(2) Paragraph (2) of section 304(a) of the Social Security Act is 
amended by striUng out "subsection Qy) or (c)" and inserting in lieu 
thereof "subsection (b), (c), or (d)". 
(3) The amendments made by this subsection shall take efiTect on 
July 1,1980. 
TITLE V-OTHER PROVISIONS RELATING TO THE SOCIAL 
SECURITY ACT 
RELATIONSHIP BETWEEN SOCIAL SECURITY AND SSI BENEFITS 
SEC. 501. (a) Part A of 
title XI of 
the Social Security Act is amended 
by inserting immediately after section 1126 the following new 
section: 
Wage 
information. 
Safeguards, 
establishment. 
"Child support 
obligations." 
42 u s e 654. 
42 u s e 651. 
Noncompliance 
of State agency. 
Definition. 
42 u s e 504. 
Effective date. 
42 u s e 503 note. 
ADJUSTMENT OF RETROACTIVE BENEFITS UNDER TITLE H ON ACCOUNT 
OF SUPPLEMENTAL SECURITY INCOME BENEFITS 
"SEC. 1127. Notwithstanding any other provision of 
this Act, in any 42 use i320a-6. 
case where an individual— 
"(1) makes application for benefits under title 11 and is subse- 42 use 40i. 
quently determined to be entitled to those benefits, and 
"(2) was an individual with respect to whom supplemental 
security income benefits were paid under title XVI (inclucUng 42 use i38i. 
State supplementary payments which were made under an 
agreement pursuant to section 1616(a) or an administration 42usei382e. 
agreement under section 212 of Public Law 93-66) for one or 8
7 stat. 155. 
more months during the period beginning with the first month 
94 STAT. 470 
PUBLIC LAW 96-265—JUNE 9, 1980 
for which a benefit described in paragraph (1) is payable and 
ending with the month before the first month in which such 
benefit is paid pursuant to the application referred to in para-
graph (1), 
the benefits (described in paragraph (1)) which are otherwise retroac-
tively payable to such individual for months in the period described 
in paragraph (2) shall be reduced by an amount equal to so much of 
such supplemental security income benefits (including State supple-
mentary payments) described in paragraph (2) for such month or 
months as would not have been paid with respect to such individual 
or his eligible spouse if the individual had received the benefits under 
42 use 401. 
title II at the times they were regularly due during such period rather 
than retroactively; and from the amount of such reduction the 
Secretary shall reimburse the State on behalf of which such supple-
mentary payments were made for the amount (if any) by which such 
State's expenditures on account of such supplementary payments for 
the period involved exceeded the expenditures which the State would 
have made (for such period) if the individual had received the benefits 
under title II at the times they were regularly due during such period 
rather than retroactively. An amount equal to the portion of such 
reduction remaining after reimbursement of the State under the 
preceding sentence shall be covered into the general fund of the 
Treasury.". 
42 use 404. 
(b) Section 204 of such Act is amended by adding at the end thereof 
the following new subsection: 
"(e) For payments which are adjusted by reason of payment of 
benefits under the supplemental security income program estab-
42 use 1381. 
lished by title XVI, see section 1127.". 
Ante, p. 469. 
(^.) Section 1631(b) of such Act is amended— 
42 use 1383. 
(1) t,y inserting "(1)" immediately after "(b)", and 
(2) by adding at the end thereof the following new paragraph: 
"(2) For pa3Tnents for which adjustments are made by reason of a 
42 use 401. 
retroactive payment of benefits under title II, see section 1127.". 
Ante, p. 469. 
(j) rpj^g amendments made by this section shall be applicable in the 
42 use i320a-6 ^.^gg Qf pa3mients of monthly insurance benefits under title II of the 
"° ^ 
Social Security Act entitlement for which is determined on or after 
the first day of the thirteenth month which begins after the date of 
the enactment of this Act. 
EXTENSION OF NATIONAL COMMISSION ON SOCIAL SECURITY 
SEC. 502. (a) Section 361(aX2)(F) of the Social Security Amendments 
42 use 907a. 
of 1977 is amended by striking out "a term of two years" and 
inserting in lieu thereof "a term which shall end on April 1, 1981". 
Ot)) Section 361(c)(2) of the Social Security Amendments of 1977 is 
amended by striking out all that follows the semicolon and inserting 
in lieu thereof "and the Commission shall cease to exist on April 1, 
1981.". 
TIME FOR MAKING OF SOCIAL SECURITY CONTRIBUTIONS WITH RESPECT 
TO COVERED STATE AND LOCAL EMPLOYEES 
SEC 503. (a) Subparagraph (A) of section 218(e)(1) of the Social 
42 use 418. 
Security Act is amended to read as follows: 
"(A) that the State will pay to the Secretary of the Treasury, 
within the thirty-day period immediately following the last day 
of each calendar month, amounts equivalent to the sum of the 
PUBLIC LAW 96-265—JUNE 9, 1980 
94 STAT. 471 
taxes which would be imposed by sections 3101 and 3111 of the 
Internal Revenue Code of 1954 if the services for which wages 
were paid in such month to employees covered by the agreement 
constituted emplo3nnent as defined in section 3121 of such Code; 
and". 
(b) The amendment made by subsection (a) shall be effective with 
respect to the pa5nnent of taxes (referred to in section 218(eXlXA) of 
the Social Security Act, as amended by subsection (a)) on account of 
wages paid on or after July 1,1980. 
(c) The provisions of section 7 of Public Law 94-202 shall not be 
applicable to any regulation which becomes effective on or after July 
1,1980, and which is designed to carry out the purposes of subsection 
(a) of this section. 
26 u s e 3101, 
3111. 
26 u s e 3121. 
Effective date. 
42 u s e 418 note. 
Ante, p. 470. 
42 u s e 405a. 
42 u s e 405a 
note. 
ELIGIBILITY OF ALIENS FOR SSI BENEFITS 
SEC. 504. (a) Section 1614(f) of the Social Security Act is amended by 42 use I382c. 
adding at the end thereof the following new paragraph: 
"(3) For purposes of determining eligibility for and the amount of 
benefits for any individual who is an £dien, such individual's income 
and resources shall be deemed to include the income and resources of 
his sponsor and such sponsor's spouse (if such alien has a sponsor) as 
provided in section 1621. Any such income deemed to be income of Wra. 
such individual shall be treated as unearned income of such 
individual.". 
(b) Part A of title XVI of such Act is amended by adding at the end 
thereof (after the new section added by section 201(c) of this Act) the Ante, p. 445. 
following new section: 
'ATTRIBUTION OF SPONSOR'S INCOME AND RESOURCES TO ALIENS 
Eligibility 
determination 
for benefits. 
42 u s e 1382J. 
"SEC. 1621. (a) For purposes of determining eligibility for and the 
amount of benefits under this title for an individual who is an alien, 
the income and resources of any person who (as a sponsor of such 
individual's entry into the United States) executed an affidavit of 
support or similar agreement with respect to such individual, and the 
income and resources of the sponsor's spouse, shall be deemed to be 
the income and resources of such individual (in accordance with 
subsections (b) and (c)) for a period of three years after the individ-
ual's entry into the United States. Any such income deemed to be 
income of such individual shall be treated as unearned income of 
such individual. 
"(bXD The amount of income of a sponsor (and his spouse) which 
shall be deemed to be the unearned income of an alien for any year 
shall be determined as follows: 
"(A) The total yearly rate of earned and unearned income (as 
determined under section 1612(a)) of such sponsor and such Ante, p. 449. 
sponsor's spouse (if such spouse is living with the sponsor) shall 
be determined for such year. 
"(B) The amount determined under subparagraph (A) shall be 
reduced by an amount equal to (i) the maximum amount of the 
Federal benefit under tms title for such year which woidd be 
payable to an eligible individual who has no other income and 
who does not have an eligible spouse (as determined under 
section 1611(bXl)), plus (ii) one-half of the amount determined 42 use 1
3
8
2 
under clause (i) multiplied by the number of individuate who are 
dependents of such sponsor (or such sponsor's spouse if such 
94 STAT. 472 
PUBLIC LAW 96-265—JUNE 9, 1980 
42 u s e 1382. 
42 u s e 1382b. 
42 u s e 1382a. 
Information and 
documentation 
respecting 
sponsor. 
Sponsor and 
alien, liability 
for overpayment. 
spouse is living with the sponsor), other than such alien and such 
alien's spouse. 
"(C) The amount of income which shall be deemed to be 
unearned income of such alien shall be at a yearly rate equal to 
the amount determined under subparagraph (B). The period for 
determination of such amount shall be the same as the period for 
determination of benefits under section 1611(c). 
"(2) The amount of resources of a sponsor (and his spouse) which 
shall be deemed to be the resources of an alien for any year shall be 
determined as follows: 
"(A) The total amount of the resources (as determined under 
section 1613) of such sponsor and such sponsor's spouse (if such 
spouse is living with the sponsor) shall be determined, 
"(B) The amount determined under subparagraph (A) shall be 
reduced by an amount equal to (i) $1,500 in the case of a sponsor 
who has no spouse with whom he is living, or (ii) $2,250 in the 
case of a sponsor who has a spouse with whom he is living. 
"(C) The resources of such sponsor (and spouse) as determined 
under subparagraphs (A) and (B) shall be deemed to be resources 
of such alien in addition to any resources of such alien. 
"(c) In determining the amount of income of an alien during the 
period of three years after such alien's entry into the United States, 
the reduction in dollar amounts otherwise required under section 
1612(a)(2)(A)(i) shall not be applicable if such alien is living in the 
household of a person who is a sponsor (or such sponsor's spouse) of 
such alien, and is receiving support and maintenance in kind from 
such sponsor (or spouse), nor shall support or maintenance furnished 
in cash or kind to an alien by such alien's sponsor (to the extent that 
it reflects income or resources which were taken into account in 
determining the amount of income and resources to be deemed to the 
alien under subsection (a) or (b)) be considered to be income of such 
alien under section 1612(aX2XA). 
"(d)(1) Any individual who is an alien shall, during the period of 
three years after entry into the United States, in order to be an 
eligible individual or eligible spouse for purposes of this title, be 
required to provide to the Secretary such information and documen-
tation with respect to his sponsor as may be necessary in order for the 
Secretary to make any determination required under this section, 
and to obtain any cooperation from such sponsor necessary for any 
such determination. Such alien shall also be required to provide to 
the Secretary such information and documentation as the Secretary 
may request and which such alien or his sponsor provided in support 
of such alien's immigration application. 
"(2) The Secretary shall enter into agreements with the Secretary 
of State and the Attorney General whereby any information avail-
able to such persons and required in order to make any determination 
under this section will be provided by such persons to the Secretary, 
and whereby such persons shall inform any sponsor of an alien, at the 
time such sponsor executes an affidavit of support or similar agree-
ment, of the requirements imposed by this section. 
"(e) Any sponsor of an alien, and such alien, shall be jointly and 
severably liable for an amount equal to any overpajnnent made to 
such alien during the period of three years after such alien's entry 
into the United States, on account of such sponsor's failure to provide 
correct information under the provisions of this section, except where 
such sponsor was without fault, or where good cause for such failure 
existed. Any such overpayment which is not repaid to the Secretary 
PUBLIC LAW 96-265—JUNE 9, 1980 
94 STAT. 473 
Aged, blind, or 
disabled 
individual, 
nonapplicability. 
42 use 1382c. 
or recovered in accordance with section 16310)) shall be withheld ^^te, p. 470. 
from any subsequent payment to which such alien or such sponsor is 
entitled under any provision of 
this Act. 
"(fXD The provisions of this section shall not apply with respect to 
any individual who is an 'aged, blind, or disabled individual' for 
purposes of this title by reason of blindness (as determined under 
section 1614(aX2)) or disability (as determined under section 
1614(aX3)), from and after the onset of the impairment, if such 
blindness or disabihty commenced after the date of such individual's 
admission into the United States for permanent residence. 
"(2) Tlie provisions of this section shall not apply with respect to 
any alien who is— 
"(A) admitted to the United States as a result of the applica-
tion, prior to April 1,1980, of the provisions of 
section 203(aX7) of 
the Immigration and Nationality Act; 
"(B) admitted to the United States as a result of the applica-
tion, after March 31,1980, of the provisions of section 207(cXl) of 
such Act; 
"(C) paroled into the United States as a refugee under section 
212(dX5) of 
such Act; or 
"(D) granted political asylum by the Attorney General.". 
(c) The amendments made by this section shall be effective with 
respect to individuals applying for supplemental security income 
benefits under title XVI of the Social Security Act for the first time 
after September 30,1980. 
8 use 1153. 
Ante, p. 103. 
Ante, p. 107. 
Effective date. 
42 use 1382J 
note. 
42 use 1381. 
AUTHORITY FOR DEMONSTRATION PROJECTS 
SEC. 505. (aXD The Secretary of Health and Human Services shall 
develop and carry out experiments and demonstration projects 
designed to determine the relative advantages and disadvantages of 
(A) various alternative methods of treating the work activity of 
disabled beneficiaries under the old-age, survivors, and disability 
insurance program, including such methods as a reduction in benefits 
based on earnings, designed to encourage the return to work of 
disabled beneficiaries and (B) altering other limitations and condi-
tions applicable to such disabled beneficiaries (including, but not 
limited to, lengthening the trial work period, altering the 24-month 
waiting period for medicare benefits, ^tering the manner in which 
such program is administered, earlier referral of beneficiaries for 
rehabilitation, and greater use of employers and others to develop, 
perform, and otherwise stimulate new forms of rehabilitation), to the 
end that savings will accrue to the Trust FHmds, or to otherwise 
promote the objectives or facilitate the administration of title n of 
the 
Social Security Act. 
(2) The experiments and demonstration projects developed under 
paragraph (1) shall be of sufficient scope and sliall be carried out on a 
wide enough scale to permit a thorough evaluation of the alternative 
methods under consideration while giving assurance that the results 
derived from the experiments and projects mil obtain generally in 
the operation of the disability insurance program without commit* 
ting such program to the adoption of any particular system either 
locally or nationally. 
(3) In the case of any experiment or demonstration project under 
para^aph (1), the Secreta^ m^j^raive compliance with the benefit 
requirements of titles n and XVm of the Social Security Act insofar 
as is necessary for a thorough evaluation of the alternative methods 
42 use 1310 
note. 
42 use 401. 
42 use 401, 
1395. 
94 STAT. 474 
PUBLIC LAW 96-265—JUNE 9, 1980 
Report to 
Congress. 
42 u s e 401. 
Ante, p. 459. 
Ante, p. 473. 
42 u s e 1310. 
Waiver. 
42 u s e 1381. 
42 u s e 1382e. 
under consideration. No such experiment or project shall be actually 
placed in operation unless at least ninety days prior thereto a written 
report, prepared for purposes of notification and information only 
and containing a full and complete description thereof, has been 
transmitted by the Secretary to the Committee on Ways and Means 
of the House of Representatives and to the Committee on Finance of 
the Senate. Periodic reports on the progress of such experiments and 
demonstration projects shall be submitted by the Secretary to such 
committees. When appropriate, such reports shall include detailed 
recommendations for changes in administration or law, or both, tc 
carry out the objectives stated in paragraph (1). 
(4) The Secretary shall submit to the Congress no later than 
January 1, 1983, a report on the experiments and demonstration 
projects with respect to work incentives carried out under this 
subsection together with any related data and materials which he 
may consider appropriate. 
(5) Section 201 of the Social Security Act is amended by adding at 
the end thereof (after the new subsection added by section 310(a) of 
this Act) the following new subsection: 
"(k) Expenditures made for experiments and demonstration proj-
ects under section 505(a) of the Social Security Disability Amend-
ments of 1980 shall be made from the Federal Disability Insurance 
Trust Fund and the Federal Old-Age and Survivors Insurance Trust 
Fund, as determined appropriate by the Secretary.". 
(b) Section 1110 of the Social Security Act is amended— 
(1) by inserting "(1)" after "SEC. 1110. (a)"; 
(2) by striking out "for (1)" and "(2)" and inserting in lieu 
thereof "for (A)" and "(B)", respectively; 
(3) by redesignating subsections (b) and (c) as paragraphs (2) 
and (3), respectively; 
(4) by striking out "under subsection (a)" each place it appears 
and inserting in lieu thereof "under paragraph (1)"; 
(5) by striking out "purposes of this section" and inserting in 
lieu thereof "purposes of this subsection"; and 
(6) by adding at the end thereof the following new subsection: 
"(b)(1) The Secretary is authorized to waive any of the require-
ments, conditions, or limitations of title XVI (or to waive them only 
for specified purposes, or to impose additional requirements, condi-
tions, or limitations) to such extent and for such period as he finds 
necessary to carry out one or more experimental, pilot, or demonstra-
tion projects which, in his judgment, are likely to assist in promoting 
the objectives or facilitate the administration of such title. Any costs 
for benefits under or administration of any such project (including 
planning for the project and the review and evaluation of the project 
and its results), in excess of those that would have been incurred 
without regard to the project, shall be met by the Secretary from 
amounts available to him for this purpose from appropriations made 
to carry out such title. The costs of any such project which is carried 
out in coordination with one or more related projects under other 
titles of this Act shall be allocated among the appropriations avail-
able for such projects and any Trust Funds involved, in a manner 
determined by the Secretary, taking into consideration the programs 
(or types of benefit) to which the project (or part of a project) is most 
closely related or which the project (or part of a project) is intended to 
benefit. If, in order to carry out a project under this subsection, the 
Secretary requests a State to make supplementary payments (or 
makes them himself pursuant to an agreement under section 1616), 
PUBLIC LAW 96-265—JUNE 9, 1980 
94 STAT. 475 
42 u s e 1381. 
or to provide medical assistance under its plan approved under title 
XIX, to individuals who are not eligible therefor, or in amounts or 42 use 1396. 
under circumstances in which the State does not make such pay-
ments or provide such medical assistance, the Secretary shall reim-
burse such State for the non-Federal share of such payments or 
assistance from amounts appropriated to carry out title XVI. 
"(2) With respect to the participation of recipients of supplemental 
security income benefits in experimental, pilot, or demonstration 
projects under this subsection— 
"(A) the Secretary is not authorized to cany out any project 
that would result in a substantial reduction in any individual's 
total income and resources as a result of his or her participation 
in the project; 
"(B) the Secretary may not require any individual to partici-
pate in a project; and he shall assure (i) that the voluntary 
participation of individuals in any project is obtained through 
informed written consent which satisfies the requirements for 
informed consent established by the Secretary for use in any 
experimental, pilot, or demonstration project in which human 
subjects are at risk, and (ii) that any individual's voluntary 
agreement to participate in any project may be revoked by such 
individual at any time; 
"(C) the Secretary shall, to the extent feasible and appropriate, 
include recipients who are under age 18 as well as adult recipi-
ents; and 
"(D) the Secretary shall include in the projects carried out 
under this section such experimental, pilot, or demonstration 
projects as may be necessary to ascertain the feasibility of 
treating alcoholics and drug addicts to prevent the onset of 
irreversible medical conditions which may result in permanent 
disability, including programs in residential care treatment 
centers.". 
(c) The Secretary shall submit to the Congress a final report with 
respect to all experiments and demonstration projects carried out 
under this section no later than five years after the date of the 
enactment of this Act. 
Report to 
eongress. 
42 u s e 1310 
note. 
ADDITIONAL FUNDS FOR DEMONSTRATION PROJECT RELATING TO THE 
TERMINALLY ILL 
SEC. 506. (a) The Secretary of Health and Human Services is 
authorized to provide for the participation, by the Social Security 
Administration, in a demonstration project relating to the terminally 
ill which is currently being conducted within the Department of 
Health and Human Services. The purpose of such participation shall 
be to study the impact on the terminally ill of provisions of the 
disability programs administered by the Social Security Administra-
tion and to determine how best to provide services needed by persons 
who are terminally ill through programs over which the Social 
Security Administration has administrative responsibility. 
(b) For the purpose of carrying out this section there are authorized 
to be appropriated such sums (not in excess of $2,000,000 for any fiscal 
year) as may be necessary. 
42 u s e 1395ZZ 
note. 
Appropriation 
authorization. 
94 STAT. 476 
PUBLIC LAW 96-265—JUNE 9, 1980 
VOLUNTARY CERTIFICATION OF MEDICARE SUPPLEMENTAL HEALTH 
INSURANCE POLICIES 
SEC. 507. (a) Title XVIII of the Social Security Act is amended by 
adding at the end thereof the following new section: 
42 u s e 1395SS. 
Emblem. 
List of certified 
policies. 
State regulatory 
program, 
standards and 
requirements. 
Supplemental 
Health 
Insurance Panel, 
establishment. 
Quorum. 
VOLUNTARY CERTIFICATION OF MEDICARE SUPPLEMENTAL HEALTH 
INSURANCE POLICIES 
"SEC. 1882, (a) The Secretary shall establish a procedure whereby 
medicare supplemental policies (as defined in subsection (g)(1)) may 
be certified by the Secretary as meeting minimum standards and 
requirements set forth in subsection (c). Such procedure shall provide 
an opportunity for any insurer to submit any such policy, and such 
additional data as the Secretary finds necessary, to the Secretary for 
his examination and for his certification thereof as meeting the 
standards and requirements set forth in subsection (c). Such certifica-
tion shall remain in effect if the insurer files a notarized statement 
with the Secretary no later than June 30 of each year stating that the 
policy continues to meet such standards and requirements and if the 
insurer submits such additional data as the Secretary finds necessary 
to independently verify the accuracy of such notarized statement. 
Where the Secretary determines such a policy meets (or continues to 
meet) such standards and requirements, he shall authorize the 
insurer to have printed on such policy (but only in accordance with 
such requirements and conditions as the Secretary may prescribe) an 
emblem which the Secretary shall cause to be designed for use as an 
indication that a policy has received the Secretary's certification. The 
Secretary shall provide each State commissioner or superintendent of 
insurance with a list of all the policies which have received his 
certification. 
"(bXl) Any medicare supplemental policy issued in any State which 
the Supplemental Health Insurance Panel (established under para-
graph (2)) determines has established under State law a regulatory 
program that— 
"(A) provides for the application of standards with respect to 
such policies equal to or more stringent than the NAIC Model 
Standards (as defined in subsection (gX2XA)); 
"(B) includes a requirement equal to or more stringent than 
the requirement described in subsection (cX2); and 
"(C) provides for application of the standards and require-
ments described in subparagraphs (A) and (B) to all medicare 
supplemental policies (as defined in subsection (gXD) issued in 
such State, 
shall be deemed (for so long as the Panel finds that such State 
regulatory program continues to meet the standards and require-
ments of this paragraph) to meet the standards and requirements set 
forth in subsection (c). 
"(2XA) There is hereby established a panel (hereinafter in this 
section referred to as the 'Panel') to be known as the Supplemental 
Health Insurance Panel. The Panel shall consist of the Secretary, 
who shall serve as the Chairman, and four State commissioners or 
superintendents of insurance, who shall be appointed by the Presi-
dent and serve at his pleasure. Such members shall first be appointed 
not later than December 31,1980. 
"(B) A majority of the members of the Panel shall constitute a 
quorum, but a lesser number may conduct hearings. 
PUBLIC LAW 96-265—JUNE 9, 1980 
94 STAT. 477 
"(C) The Secretary shall provide such technical, secretarial, cleri-
cal, and other assistance as the Panel may require. 
"(D) There are authorized to be appropriated such sums as may be 
necessary to carry out this paragraph. 
"(E) Members of the Panel shall be allowed, while away from their 
homes or regular places of business in the performance of services for 
the Panel, travel expenses (including per diem in lieu of subsistence) 
in the same manner as persons employed intermittently in the 
Government service are allowed expenses under section 5703 of title 
5, United States Code. 
"(c) The Secretary shall certify under this section any medicare 
supplemental policy, or continue certification of such a policy, only if 
he finds that such policy— 
"(1) meets or exceeds (either in a single policy or, in the case of 
nonprofit hospital and medical service associations, in one or 
more policies issued in conjunction with one another) the NAIC 
Model Standards; and 
"(2) can be expected (as estimated for the entire period for 
which rates are computed to provide coverage, on the basis of 
incurred claims experience and earned premiums for such period 
and in accordance with accepted actuarial principles and prac-
tices) to return to policyholders in the form of aggregate benefits 
provided under the policy, at least 75 percent of the aggregate 
amount of premiums collected in the case of group policies and at 
least 60 percent of the aggregate amount of premiums collected 
in the case of individual policies. 
For purposes of paragraph (2), policies issued as a result of solicita-
tions of individuals through the mails or by mass media advertising 
(including both print and broadcast advertising) shall be deemed to be 
individual policies. 
"(d)(1) Whoever knowingly or willfully makes or causes to be made 
or induces or seeks to induce the making of any false statement or 
representation of a material fact with respect to the compliance of 
any policy with the standards and requirements set forth in subsec-
tion (c) or in regulations promulgated pursuant to such subsection, or 
with respect to the use of the emblem designed by the Secretary 
under subsection (a), shall be guilty of a felony and upon conviction 
thereof shall be fined not more than $25,000 or imprisoned for not 
more than 5 years, or both. 
"(2) Whoever falsely assumes or pretends to be acting, or misrepre-
sents in any way that he is acting, under the authority of or in 
association with, the program of health insurance established by this 
title, or any Federal agency, for the purpose of selling or attempting 
to sell insurance, or in such pretended character demands, or obtains 
money, paper, documents, or anything of value, shall be guilty of a 
felony and upon conviction thereof shall be fined not more than 
$25,000 or imprisoned for not more than 5 years, or both. 
"(3)(A) Whoever knowingly sells a health insurance policy to an 
individual entitled to benefits under part A or enrolled under part B 
of this title, with knowledge that such policy substantially duplicates 
health benefits to which such individual is otherwise entitled, other 
than benefits to which he is entitled under a requirement of State or 
Federal law (other than this title), shall be guilty of a felony and upon 
conviction thereof shall be fined not more than $25,000 or imprisoned 
for not more than 5 years, or both. 
Appropriation 
authorization. 
Travel expenses. 
Medicare 
supplemental 
policy, 
certification 
criteria. 
Individual 
policies. 
False statement 
or representa-
tion, penalties 
and fines. 
42 u s e 1395c, 
1395J. 
94 STAT. 478 
PUBLIC LAW 96-265—JUNE 9, 1980 
Policies mailed 
for prohibited 
purpose. 
Definition. 
Exceptions. 
Benefit 
information. 
State regulatory 
programs, study 
and evaluation. 
"(B) For purposes of this paragraph, benefits which are payable to 
or on behalf of an individual without regard to other health benefit 
coverage of such individual, shall not be considered as duplicative. 
"(C) Subparagraph (A) shall not apply with respect to the selling of 
a group policy or plan of one or more employers or labor organiza-
tions, or of the trustees of a fund established by one or more 
employers or labor organizations (or combination thereof), for em-
ployees or former employees (or combination thereof) or for members 
or former 
members (or combination 
thereof) 
of the 
labor 
organizations. 
"(4)(A) Whoever knowingly, directly or through his agent, mails or 
causes to be mailed any matter for a prohibited purpose (as deter-
mined under subparagraph (B)) shall be guilty of a felony and upon 
conviction thereof shall be fined not more than $25,000 or imprisoned 
for not more than 5 years, or both. 
"(B) For purposes of subparagraph (A), a prohibited purpose means 
the advertising, solicitation, or offer for sale of a medicare supple-
mental policy, or the delivery of such a policy, in or into any State in 
which such policy has not been approved by the State commissioner 
or superintendent of insurance. For purposes of this paragraph, a 
medicare supplemental policy shall be deemed to be approved by the 
commissioner or superintendent of insurance of a State i
f
— 
"(i) the policy has been certified by the Secretary pursuant to 
subsection (c) or was issued in a State with an approved regula-
tory program (as defined in subsection (gX2XB)); 
"(ii) the policy has been approved by the commissioners or 
superintendents of insurance in States in which more than 30 
percent of such policies are sold; or 
"(iii) the State has in effect a law which the commissioner or 
superintendent of insurance of the State has determined gives 
him the authority to review, and to approve, or effectively bar 
from sale in the State, such policy; 
except that such a policy shall not be deemed to be approved by a 
State commissioner or superintendent of insurance if the State 
notifies the Secretary that such policy has been submitted for 
approval to the State and has been specifically disapproved by such 
State after providing appropriate notice and opportunity for hearing 
pursuant to the procedures (if any) of the State. 
"(C) Subparagraph (A) shall not apply in the case of a person who 
mails or causes to be mailed a medicare supplemental policy into a 
State if such person has ascertained that the party insured under 
such policy to whom (or on whose behalf) such policy is mailed is 
located in such State on a temporary basis. 
"(D) Subparagraph (A) shall not apply in the case of a person who 
mails or causes to be mailed a duplicate copy of a medicare supple-
mental policy previously issued to the party to whom (or on whose 
behalf) such duplicate copy is mailed, if such policy expires not more 
than 12 months after the date on which the duplicate copy is mailed. 
"(e) The Secretary shall provide to all individuals entitled to 
benefits under this title (and, to the extent feasible, to individuals 
about to become so entitled) such information as will permit such 
individuals to evaluate the value of medicare supplemental policies to 
them and the relationship of any such policies to benefits provided 
under this title. 
"(f)(1)(A) The Secretary shall, in consultation with Federal and 
State regulatory agencies, the National Association of Insurance 
Commissioners, private insurers, and organizations representing 
PUBLIC LAW 96-265—JUNE 9, 1980 
94 STAT. 479 
consumers and the aged, conduct a comprehensive study and evalua-
tion of the comparative effectiveness of various State approaches to 
the regulation of medicare supplemental policies in (i) limiting 
marketing and agent abuse, (ii) assuring the dissemination of such 
information to individuals entitled to benefits under this title (and to 
other consumers) as is necessary to permit informed choice, (iii) 
promoting policies which provide reasonable economic benefits for 
such individuals, (iv) reducing the purchase of unnecessary duplica-
tive coverage, (v) improving price competition, and (vi) establishing 
effective approved State regulatory programs described in subsection 
(b). 
"(B) Such study shall also address the need for standards or 
certification of health insurance policies, other than medicare supple-
mental policies, sold to individuals eligible for benefits under this 
title. 
"(C) The Secretary shall, no later than January 1, 1982, submit a 
report to the Congress on the results of such study and evaluation, 
accompanied by such recommendations as the Secretary finds war-
ranted by such results with respect to the need for legislative or 
administrative changes to accomplish the objectives set forth in 
subparagraphs (A) and (B), including the need for a mandatory 
Federal regulatory program to assure the marketing of appropriate 
types of medicare supplemental policies, and such other means as he 
finds may be appropriate to enhance effective State regulation of 
such policies. 
"(2) The Secretary shall submit to the Congress no later than July 
1, 1982, and periodically as may be appropriate thereafter (but not 
less often than once every 2 years), a report evaluating the effective-
ness of the certification procedure and the criminal penalties estab-
lished under this section, and shall include in such reports an 
analysis o
f
— 
"(A) the impact of such procedure and penalties on the types, 
market share, value, and cost to individuals entitled to benefits 
under this title of medicare supplemental policies which have 
been certified by the Secretary; 
"(B) the need for any change in the certification procedure to 
improve its administration or effectiveness; and 
"(C) whether the certification program and criminal penalties 
should be continued. 
"(g)(1) For purposes of this section, a medicare supplemental policy 
is a health insurance policy or other health benefit plan offered by a 
private entity to individuals who are entitled to have payment made 
under this title, which provides reimbursement for expenses incurred 
for services and items for which payment may be made under this 
title but which are not reimbursable by reason of the applicability of 
deductibles, coinsurance amounts, or other limitations imposed pur-
suant to this title; but does not include any such policy or plan of one 
or more employers or labor organizations, or of the trustees of a fund 
established by one or more employers or labor organizations (or 
combination thereof), for employees or former employees (or combi-
nation thereof) or for members or former members (or combination 
thereof) of the labor organizations. For purposes of this section, the 
term 'policy' includes a certificate issued under such policy. 
"(2) For purposes of this section: 
"(A) The term 'NAIC Model Standards' means the 'NAIC 
Model Regulation to Implement the Individual Accident and 
Sickness Insurance Minimum Standards Act', adopted by the 
Report to 
Congress. 
Report to 
Congress. 
Medicare 
supplemental 
policy, 
definition. 
"Policy." 
"NAIC Model 
Standards." 
79-194 O—81—pt. 1 
34 : QU 
94 STAT. 480 
PUBLIC LAW 96-265—JUNE 9, 1980 
Definition. 
Regulations. 
Emblem usage, 
effective date. 
Panel findings, 
transmittal to 
congressional 
committees; 
effective date. 
National Association of Insurance Commissioners on June 6, 
1979, as it applies to medicare supplement policies, 
"(B) The term 'State with an approved regulatory program' 
means a State for which the Panel has made a determination 
under subsection (b)(1). 
"(C) The State in which a policy is issued means— 
"(i) in the case of an individual policy, the State in which 
the policyholder resides; and 
"(ii) in the case of a group policy, the State in which the 
holder of the master policy resides. 
"(h) The Secretary shall prescribe such regulations as may be 
necessary for the effective, efficient, and equitable administration of 
the certification procedure established under this section. The Secre-
tary shall first issue final regulations to implement the certification 
procedure established under subsection (a) not later than March 1, 
1981. 
"(i)(l) No medicare supplemental policy shall be certified and no 
such policy may be issued bearing the emblem authorized by the 
Secretary under subsection (a) until July 1, 1982. On and after such 
date policies certified by the Secretary may bear such emblem, 
including policies which were issued prior to such date and were 
subsequently certified, and insurers may notify holders of such 
certified policies issued prior to such date using such emblem in the 
notification. 
"(2)(A) The Secretary shall not implement the certification pro-
gram established under subsection (a) with respect to policies issued 
in a State unless the Panel makes a finding that such State cannot be 
expected to have established, by July 1, 1982, an approved State 
regulatory program meeting the standards and requirements of 
subsection (bXD. If the Panel makes such a finding, the Secretary 
shall implement such program under subsection (a) with respect to 
medicare supplemental policies issued in such State, until such time 
as the Panel determines that such State has a program that meets the 
standards and requirements of subsection (b)(1). 
"(B) Any finding by the Panel under subparagraph (A) shall be 
transmitted in writing, not later than January 1, 1982, to the 
Committee on Finance of the Senate and to the Committee on 
Interstate and Foreign Commerce and the Committee on Ways and 
Means of the House of Representatives and shall not become effective 
until 60 days after the date of its transmittal to the Committees of the 
Congress under this subparagraph. In counting such days, days on 
which either House is not in session because of an adjournment sine 
die or an adjournment of more than three days to a day certain are 
excluded in the computation. 
PUBLIC LAW 96-265—JUNE 9, 1980 
94 STAT. 481 
"(j) Nothing in this section shall be construed so as to afTect the 
right of any State to regulate medicare supplemental policies which, 
under the provisions of this section, are considered to be issued in 
another State.". 
(b) The amendment made by this section shall become effective on Effective date. 
the date of the enactment of this Act, except that the provisions of 42 use i395ss 
paragraph (4) of 
section 1882(d) of 
the Social Security Act (as added by "° ^ 
this section) shall become effective on July 1,1982. 
^
"
^
« p 476. 
Approved June 9, 1980. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 96-100 (Comm. on Ways and Means) and No. 96-944 (Comm. 
of Conference). 
SENATE REPORT No. 96-408 (Comm. on Finance). 
CONGRESSIONAL RECORD: 
Vol. 125 (1979): Sept. 6, considered and passed House. 
Dec. 5, considered in Senate. 
Vol. 126 (1980): Jan. 30, 31, considered and passed Senate, amended. 
May 22, House agreed to conference report. 
May 29, Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS: 
Vol. 16, No. 24 (1980): June 9, Presidential statement.