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SECTION 1. DENIAL OF CASH BENEFITS TO DRUG ADDICTS AND ALCOHOLICS.

(a) Amendments Relating to Title II Disability Benefits.--
(1) In general.--Section 225(c) of the Social Security Act
(42 U.S.C. 425(c)) is amended--
(A) by striking ''(c)(1)(A)'' and inserting
''(2)(A)'';
(B) by striking paragraph (7) and by redesignating
paragraphs (2) through (6) as paragraphs (3) through
(7), respectively; and
(C) by inserting before paragraph (2) as
redesignated by subparagraph (A) the following new
paragraph:
''(c)(1) No cash benefits shall be payable under this title to any
individual who is otherwise entitled to benefits under this title based
on disability, if such individual's alcoholism or drug addiction is a
contributing factor material to the Commissioner's determination that
such individual is disabled.''.
(2) Treatment Requirements.--
(A) Section 225(c)(2)(A) of such Act (42 U.S.C.
425(c)(2)(A)), as redesignated by paragraph (1), is
amended to read as follows:
''(2)(A)(i) Any individual who would be entitled to cash benefits
under this title but for the application of paragraph (1) may elect to
comply with the provisions of this subsection.
''(ii) Any individual who is entitled to cash benefits
under this title by reason of disability (or whose entitlement
to such benefits is suspended), and who was entitled to such
benefits by reason of disability, for which such individual's
alcoholism or drug addiction was a contributing factor material
to the Commissioner's determination that such individual was
disabled, for the month preceding the month in which this
paragraph takes effect, shall be required to comply with the
provisions of this subsection.
(B) Section 225(c)(2)(B) of such Act (42 U.S.C.
425(c)(2)(B)), as so redesignated, is amended--
(i) by striking ''who is required under
subparagraph (A)'' and inserting ''described in
clause (ii) of subparagraph (A) who is
required''; and
(ii) by striking ''paragraph (3)'' and
inserting ''paragraph (4)''.
(C) Section 225(c)(3)(A) of such Act (42 U.S.C.
425(c)(3)(A)), as so redesignated, is amended--
(i) by striking ''paragraph (1)'' and
inserting ''paragraph (2)(A)''; and
(ii) by striking ''paragraph (5)'' and
inserting ''paragraph (6)''.
(D) Section 225(c)(3)(B) of such Act (42 U.S.C.
425(c)(3)(B)), as so redesignated, is amended by
striking ''paragraph (1)'' and inserting ''paragraph
(2)(A)''.
(E) Section 225(c)(5) of such Act (42 U.S.C.
425(c)(5)), as so redesignated, is amended by striking
''paragraph (2)'' and inserting ''paragraph (3)''.
(F) Section 225(c)(6)(A) of such Act (42 U.S.C.
425(c)(6)(A), as so redesignated, is amended--
(i) by striking ''who are receiving
benefits under this title and who as a
condition of payment of such benefits'' and
inserting ''described in paragraph (2)(A)(i)
who elect to undergo treatment; and the
monitoring and testing of all individuals
described in paragraph (2)(A)(ii) who'';
(ii) by striking ''under paragraph (1)'';
and
(iii) by striking ''paragraph (2)(A)'' and
inserting ''paragraph (3)(A)''.
(G) Section 225(c)(6)(C)(ii)(I) of such Act (42
U.S.C. 425(c)(6)(C)(ii)(I)), as so redesignated, is
amended--
(i) by striking ''residing in the State''
and all that follows through ''they are
disabled'' and inserting ''described in
paragraph (2)(A) residing in the State''; and
(ii) by striking ''paragraph (2)(A)'' and
inserting ''paragraph (3)(A)''.
(H) Section 225(c)(6)(C)(ii)(III) of such Act (42
U.S.C. 425(c)(6)(C)(ii)(III)), as so redesignated, is
amended by striking ''paragraph (2)(A)'' and inserting
''paragraph (3)(A)''.
(I) Section 225(c)(6)(C) of such Act (42 U.S.C.
425(c)(6)(C)), as so redesignated, is amended by adding
at the end the following:
''(iii) The monitoring requirements of clause (ii) shall not apply
in the case of any individual described in paragraph (2)(A)(i) who
fails to comply with the requirements of paragraph (2).''.
(J) Section 225(c)(7) of such Act (42 U.S.C.
425(c)(7)), as so redesignated, is amended--
(i) in subparagraph (A), by striking ''who
is entitled'' and all that follows through ''is
under a disability'' and inserting ''described
in paragraph (2)(A)''; and
(ii) in subparagraph (D), by striking ''(4)
or (7)'' and inserting ''(5)''.
(K) Section 225(c)(8) of such Act (42 U.S.C.
425(c)(8)) is amended by striking ''(1), (4) or (7)''
and inserting ''(2) or (5)''.
(L) Section 225(c) of such Act (42 U.S.C. 425(c))
is amended by adding at the end the following new
paragraphs:
''(10) The Commissioner shall provide appropriate notification to
each individual subject to the limitation on cash benefits contained in
paragraph (1) and the treatment provisions contained in paragraph (2).
''(11) The requirements of paragraph (2) shall cease to apply to
any individual if the Commissioner determines that such individual no
longer needs treatment.''.
(3) Representative payee requirements.--
(A) Section 205(j)(1)(B) of such Act (42 U.S.C.
405(j)(1)(B)) is amended to read as follows:
''(B) In the case of an individual entitled to benefits based on
disability, the payment of such benefits shall be made to a
representative payee if the Commissioner of Social Security determines
that such payment would serve the interest of the individual because
the individual also has an alcoholism or drug addiction condition (as
determined by the Commissioner) and the individual is incapable of
managing such benefits.''.
(B) Section 205(j)(2)(C)(v) of such Act (42 U.S.C.
405(j)(2)(C)(v)) is amended by striking ''entitled to
benefits'' and all that follows through ''under a
disability'' and inserting ''described in paragraph
(1)(B)''.
(C) Section 205(j)(2)(D)(ii)(II) of such Act (42
U.S.C. 405(j)(2)(D)(ii)(II)) is amended by striking all
that follows ''15 years, or'' and inserting ''described
in paragraph (1)(B).''.
(D) Section 205(j)(4)(A)(i)(II) of such Act (42
U.S.C. 405(j)(4)(A)(ii)(II)) is amended by striking
''entitled to benefits'' and all that follows through
''under a disability'' and inserting ''described in
paragraph (1)(B)''.
(b) Amendments Relating to SSI Benefits.--
(1) In general.--Section 1611(e)(3) of the Social Security
Act (42 U.S.C. 1382(e)(3)) is amended--
(A) by striking ''(B)'' and inserting ''(C)'';
(B) by striking ''(3)(A)'' and inserting ''(B)'';
and
(C) by inserting before subparagraph (B) as
redesignated by paragraph (2) the following new
subparagraph:
''(3)(A) No cash benefits shall be payable under this title to any
individual who is otherwise eligible for benefits under this title by
reason of disability, if such individual's alcoholism or drug addiction
is a contributing factor material to the Commissioner's determination
that such individual is disabled.''.
(2) Treatment requirements.--
(A) Section 1611(e)(3)(B)(i)(I) of such Act (42
U.S.C. 1382(e)(3)(B)(i)(I)), as redesignated by
paragraph (1), is amended to read as follows:
''(B)(i)(I)(aa) Any individual who would be eligible for cash
benefits under this title but for the application of subparagraph (A)
may elect to comply with the provisions of this subparagraph.
''(bb) Any individual who is eligible for cash benefits
under this title by reason of disability (or whose eligibility
for such benefits is suspended) or is eligible for benefits
pursuant to section 1619(b), and who was eligible for such
benefits by reason of disability, for which such individual's
alcoholism or drug addiction was a contributing factor material
to the Commissioner's determination that such individual was
disabled, for the month preceding the month in which this
subparagraph takes effect, shall be required to comply with the
provisions of this subparagraph.''.
(B) Section 1611(e)(3)(B)(i)(II) of such Act (42
U.S.C. 1382(e)(3)(B)(i)(II)), as so redesignated, is
amended by striking ''who is required under subclause
(I)'' and inserting ''described in division (bb) of
subclause (I) who is required''.
(C) Subclauses (I) and (II) of section
1611(e)(3)(B)(ii) of such Act (42 U.S.C.
1382(e)(3)(B)(ii)), as so redesignated, are each
amended by striking ''clause (i)'' and inserting
''clause (i)(I)''.
(D) Section 1611(e)(3)(B) of such Act (42 U.S.C.
1382(e)(3)(B)), as so redesignated, is amended by
striking clause (v) and by redesignating clause (vi) as
clause (v).
(E) Section 1611(e)(3)(B)(v) of such Act (42 U.S.C.
1382(e)(3)(B)(v)), as redesignated by subparagraph (D),
is amended--
(i) in subclause (I), by striking ''who is
eligible'' and all that follows through ''is
disabled'' and inserting ''described in clause
(i)(I)''; and
(ii) in subclause (V), by striking ''or
(v)''.
(F) Section 1611(e)(3)(C)(i) of such Act (42 U.S.C.
1382(e)(3)(C)(i)), as redesignated by paragraph (1), is
amended by striking ''who are receiving benefits under
this title and who as a condition of such benefits''
and inserting ''described in subparagraph (B)(i)(I)(aa)
who elect to undergo treatment; and the monitoring and
testing of all individuals described in subparagraph
(B)(i)(I)(bb) who''.
(G) Section 1611(e)(3)(C)(iii)(II)(aa) of such Act
(42 U.S.C. 1382(e)(3)(C)(iii)(II)(aa)), as so
redesignated, is amended by striking ''residing in the
State'' and all that follows through ''they are
disabled'' and inserting ''described in subparagraph
(B)(i)(I) residing in the State''.
(H) Section 1611(e)(3)(C)(iii) of such Act (42
U.S.C. 1382(e)(3)(C)(iii)), as so redesignated, is
amended by adding at the end the following:
''(III) The monitoring requirements of subclause (II) shall not
apply in the case of any individual described in subparagraph
(B)(i)(I)(aa) who fails to comply with the requirements of subparagraph
(B).''.
(I) Section 1611(e)(3) of such Act (42 U.S.C.
1382(e)(3)), as amended by paragraph (1), is amended by
adding at the end the following new subparagraphs:
''(D) The Commissioner shall provide appropriate notification to
each individual subject to the limitation on cash benefits contained in
subparagraph (A) and the treatment provisions contained in subparagraph
(B).
''(E) The requirements of subparagraph (B) shall cease to apply to
any individual if the Commissioner determines that such individual no
longer needs treatment.''.
(3) Representative payee requirements.--
(A) Section 1631(a)(2)(A)(ii)(II) of such Act (42
U.S.C. 1383(a)(2)(A)(ii)(II)) is amended to read as
follows:
''(II) In the case of an individual eligible for benefits under
this title by reason of disability, the payment of such benefits shall
be made to a representative payee if the Commissioner of Social
Security determines that such payment would serve the interest of the
individual because the individual also has an alcoholism or drug
addiction condition (as determined by the Commissioner) and the
individual is incapable of managing such benefits.''.
(B) Section 1631(a)(2)(B)(vii) of such Act (42
U.S.C. 1383(a)(2)(B)(vii)) is amended by striking
''eligible for benefits'' and all that follows through
''is disabled'' and inserting ''described in
subparagraph (A)(ii)(II)''.
(C) Section 1631(a)(2)(B)(ix)(II) of such Act (42
U.S.C. 1383(a)(2)(B)(ix)(II)) is amended by striking
all that follows ''15 years, or'' and inserting
''described in subparagraph (A)(ii)(II).''.
(D) Section 1631(a)(2)(D)(i)(II) of such Act (42
U.S.C. 1383(a)(2)(D)(i)(II)) is amended by striking
''eligible for benefits'' and all that follows through
''is disabled'' and inserting ''described in
subparagraph (A)(ii)(II)''.
(4) Preservation of medicaid eligibility.--Section 1634(e)
of such Act (42 U.S.C. 1382(e)) is amended--
(A) by striking ''clause (i) or (v) of section
1611(e)(3)(A)'' and inserting ''subparagraph (A) or
subparagraph (B)(i)(II) of section 1611(e)(3)''; and
(B) by adding at the end the following: ''This
subsection shall cease to apply to any such person if
the Commissioner determines that such person no longer
needs treatment.''.
(5) Conforming amendment.--Section 201(c) of the Social
Security Independence and Program Improvements Act of 1994 (42
U.S.C. 425 note) is repealed.
(c) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to applicants for
benefits under title II or title XVI of the Social Security Act
for months beginning on or after the date of the enactment of
this Act, without regard to whether regulations have been
issued to implement such amendments.
(2) Application to current recipients.--Notwithstanding any
other provision of law, in the case of an individual who is
receiving benefits under title II of the Social Security Act or
supplemental security income benefits under title XVI of such
Act as of the date of the enactment of this Act and whose
entitlement or eligibility for such benefits would terminate by
reason of the amendments made by this section, such amendments
shall apply with respect to the benefits of such individual for
months beginning on or after January 1, 1997, and the
Commissioner of Social Security shall so notify the individual
not later than 90 days after the date of the enactment of this
Act.
(3) Benefits under title xvi.--For purposes of this
subsection, the term ''benefits under title XVI of the Social
Security Act'' includes supplementary payments pursuant to an
agreement for Federal administration under section 1616(a) of
the Social Security Act, and payments pursuant to an agreement
entered into under section 212(b) of Public Law 93-66.
Denies monthly cash disability benefits under titles II (Old Age, Survivors and Disability Insurance) (OASDI) and XVI (Supplemental Security Income) (SSI), respectively, of the Social Security Act for drug addicts and alcoholics whose substance abuse is a contributing factor material to their disability. Allows such individuals, instead, to elect to undergo treatment for their substance abuse. (Currently, such recipients are required to undergo treatment only at approved facilities or institutions.)
Revises OASDI and SSI program representative payee requirements to require the payment of program benefits through a representative payee if it is in the interest of an otherwise disabled individual with an alcohol or drug addiction condition who is incapable of managing such benefits.
Preserves the Medicaid eligibility of SSI recipients denied cash disability benefits because of the connection between their drug addiction or alcoholism and their disability.