| |
| [Congressional
Record: May 17, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov] |
SOCIAL SECURITY ADMINISTRATIVE REFORM ACT OF 1994
Mr. ROSTENKOWSKI. Mr. Speaker, I move to suspend the rules and pass
the bill (H.R. 4277) to establish the Social Security Administration as
an independent agency and to make other improvements in the old-age,
survivors, and disability insurance program, as amended.
The Clerk read as follows:
H.R. 4277
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Social
Security Administrative Reform Act of 1994''.
(b) Table of Contents.--
Sec. 1. Short title and table of contents.
Sec. 2. Declaration of purposes.
TITLE I--ESTABLISHMENT OF THE SOCIAL SECURITY ADMINISTRATION AS AN
INDEPENDENT AGENCY
Sec. 101. Establishment of the Social Security Administration as a
separate, independent agency; responsibilities of the
agency.
Sec. 102. Social Security Board, executive director, deputy director,
beneficiary ombudsman; other officers.
Sec. 103. Personnel; budgetary matters; seal of office.
Sec. 104. Transfers to the new Social Security Administration.
Sec. 105. Transitional rules.
Sec. 106. Conforming amendments to Titles II and XVI of the Social
Security Act.
Sec. 107. Other conforming amendments.
Sec. 108. Rules of construction.
Sec. 109. Effective dates.
TITLE II--IMPROVEMENTS TO THE OLD-AGE, SURVIVORS, AND DISABILITY
INSURANCE PROGRAM
Sec. 201. Restrictions on payment of benefits based on disability to
substance abusers.
Sec. 202. Issuance of physical documents in the form of bonds, notes,
or certificates to the social security trust funds.
Sec. 203. Explicit requirements for maintenance of telephone access to
local offices of the Social Security Administration.
Sec. 204. Expansion of State option to exclude service of election
officials or election workers from coverage.
Sec. 205. Use of social security numbers by States and local
governments and Federal district courts for jury
selection purposes.
Sec. 206. Authorization for all States to extend coverage to State and
local policemen and firemen under existing coverage
agreements.
Sec. 207. Limited exemption for Canadian ministers from certain self-
employment tax liability.
Sec. 208. Exclusion of totalization benefits from the application of
the windfall elimination provision.
Sec. 209. Exclusion of military reservists from application of the
government pension offset and windfall elimination
provisions.
Sec. 210. Repeal of the facility-of-payment provision.
Sec. 211. Maximum family benefits in guarantee cases.
Sec. 212. Authorization for disclosure by the Secretary of Health and
Human Services of information for purposes of public or
private epidemiological and similar research.
Sec. 213. Misuse of symbols, emblems, or names in reference to social
security programs and agencies.
Sec. 214. Increased penalties for unauthorized disclosure of social
security information.
Sec. 215. Increase in authorized period for extension of time to file
annual earnings report.
Sec. 216. Extension of disability insurance program demonstration
project authority.
Sec. 217. Cross-matching of social security account number information
and employer identification number information maintained
by the Department of Agriculture.
Sec. 218. Certain transfers to railroad retirement account made
permanent.
Sec. 219. Authorization for use of social security account numbers by
department of labor in administration of Federal workers'
compensation laws.
Sec. 220. Coverage under FICA of Federal employees transferred
temporarily to international organizations.
Sec. 221. Extension of the FICA tax exemption and certain tax rules to
individuals who enter the United States under a visa
issued under section 101 of the Immigration and
Nationality Act.
Sec. 222. Study of rising costs of disability insurance benefits.
Sec. 223. Commission on childhood disability.
Sec. 224. Disregard deemed income and resources of ineligible spouse in
determining continued eligibility under section 1619(b).
Sec. 225. Plans for achieving self-support not disapproved within 60
days to be deemed approved.
Sec. 226. Temporary authority to approve a limited number of plans for
achieving self-support that include housing goals.
Sec. 227. Regulations regarding completion of plans for achieving self-
support.
Sec. 228. Treatment of certain grant, scholarship, or fellowship income
as earned income for SSI purposes.
Sec. 229. SSI eligibility for students temporarily abroad.
Sec. 230. Disregard of cost-of-living increases for continued
eligibility for work incentives.
Sec. 231. Expansion of the authority of the Social Security
Administration to prevent, detect, and terminate
fraudulent claims for SSI benefits.
Sec. 232. Disability review required for SSI recipients who are 18
years of age.
Sec. 233. Continuing disability reviews.
Sec. 234. Technical and clerical amendments.
SEC. 2. DECLARATION OF PURPOSES.
The purposes of this Act are as follows:
(1) To establish the Social Security Administration as an
independent agency, separate from the Department of Health
and Human Services.
(2) To charge the Social Security Administration with
administration of the old-age, survivors, and disability
insurance program and supplemental security income program.
(3) To establish a Social Security board as head of the
Social Security Administration and define the powers and
duties of such Board.
(4) To establish an Executive Director of the
Administration and define the powers and duties of the
Executive Director.
(5) To provide for delegating major authorities to the
Board and the Executive Director.
(6) To make other improvements in the old-age, survivors,
and disability insurance program under title II of the Social
Security Act.
TITLE I--ESTABLISHMENT OF THE SOCIAL SECURITY ADMINISTRATION AS AN
INDEPENDENT AGENCY
SEC. 101. ESTABLISHMENT OF THE SOCIAL SECURITY ADMINISTRATION
AS A SEPARATE, INDEPENDENT AGENCY;
RESPONSIBILITIES OF THE AGENCY.
Section 701 of the Social Security Act (42 U.S.C. 901) is
amended to read as follows:
``Social Security Administration
``Sec. 701. There is hereby established, as an independent
agency in the executive branch of the Government, a Social
Security Administration. It shall be the duty of the
Administration to administer the old-age, survivors, and
disability insurance program under title II and the
supplemental security income program under title XVI.''.
SEC. 102. SOCIAL SECURITY BOARD, EXECUTIVE DIRECTOR, DEPUTY
DIRECTOR, BENEFICIARY OMBUDSMAN; OTHER
OFFICERS.
(a) In General.--Section 702 of the Social Security Act (42
U.S.C. 902) is amended to read as follows:
``SOCIAL SECURITY BOARD; EXECUTIVE DIRECTOR; OTHER OFFICERS
``Social Security Board
``Sec. 702. (a)(1)(A) The Administration shall be governed
by a Social Security Board. The Board shall be composed of
three members appointed by the President, by and with the
advice and consent of the Senate. The members shall be chosen
on the basis of their integrity, impartiality, and good
judgment, and shall be individuals who are, by reason of
their education, experience, and attainments, exceptionally
qualified to perform the duties of members of the Board.
``(B)(i) Except as provided in clauses (ii) and (iii),
members of the Board shall be appointed for terms of six
years. A member of the Board may be removed only pursuant to
a finding by the President of neglect of duty or malfeasance
in office. The President shall transmit any such finding to
the Speaker of the House of Representatives and the majority
leader of the Senate not later than five days after the date
on which such finding is made.
``(ii) Of the members first appointed--
``(I) one shall be appointed for a term of 2 years,
``(II) one shall be appointed for a term of 4 years, and
``(III) one shall be appointed for a term of 6 years,
as designated by the President at the time of appointment.
Such members shall be appointed after active consideration of
recommendations made by the chairman of the Committee on Ways
and Means of the House of Representatives and of
recommendations made by the chairman of the Committee on
Finance of the Senate.
``(iii) The President may not nominate an individual for
appointment to a term of office as member of the Board before
the commencement of the President's term of office in which
the member's term of office commences. Any member appointed
to a term of office after the commencement of such term may
serve under such appointment only for the remainder of such
term. A member may, at the request of the President, serve
for not more than one year after the expiration of his or her
term until his or her successor has taken office. A member of
the Board may be appointed for additional terms.
``(C) Not more than two members of the Board shall be of
the same political party.
``(D) A member of the Board may not, during his or her term
as member, engage in any other business, vocation,
profession, or employment. A member of the Board may continue
as a member of the Board for not longer than the 30-day
period beginning on the date such member first fails to meet
the requirements of the preceding sentence.
``(E) Two members of the Board shall constitute a quorum,
except that one member may hold hearings.
``(F) A member of the Board shall be designated by the
President to serve as Chairperson of the Board for a term of
4 years.
``(G) The Board shall meet at the call of the Chairperson
or two members of the Board.
``(2) Each member of the Board shall be compensated at the
rate provided for level II of the Executive Schedule.
``(3) The Board shall--
``(A) govern by regulation the old-age, survivors, and
disability insurance program under title II and the
supplemental security income program under title XVI,
``(B) establish the Administration and oversee its
efficient and effective operation,
``(C) establish policy and devise long-term plans to
promote and maintain the effective implementation of programs
referred to in subparagraph (A),
``(D) appoint an Executive Director of the Administration,
as described in subsection (b), to act as the chief operating
officer of the Administration responsible for administering
the programs referred to in subparagraph (A),
``(E) constitute three of the members of the Board of
Trustees of the Federal Old-Age and Survivors Insurance Trust
Fund and the Federal Disability Insurance Trust Fund, with
the Chairperson of the Social Security Board serving as
Chairperson of such Board of Trustees,
``(F) prepare an annual budget for the Administration,
which shall be submitted by the President to the Congress
without revision, together with the President's annual budget
for the Administration,
``(G) study and make recommendations to the Congress and
the President as to the most effective methods of providing
economic security through social insurance, supplemental
security income, and related programs and as to legislation
and matters of administrative policy concerning the programs
referred to in subparagraph (A),
``(H) provide the Congress and the President with the
ongoing actuarial and other analysis undertaken by the
Administration with respect to the programs referred to in
subparagraph (A) and any other information relating to such
programs, and
``(I) conduct policy analysis and research relating to the
programs referred to in subparagraph (A).
``(4)(A) The Board may prescribe such rules and regulations
as the Board determines necessary or appropriate to carry out
the functions of the Administration. The regulations
prescribed by the Board shall be subject to the rulemaking
procedures established under section 553 of title 5, United
States Code.
``(B) The Board may establish, alter, consolidate, or
discontinue such organizational units or components within
the Administration as the Board considers necessary or
appropriate to carry out its functions, except that this
subparagraph shall not apply with respect to any unit,
component, or position provided for by this Act.
``(C) The Board may, with respect to the administration of
the old-age, survivors, and disability insurance program
under title II and the supplemental security income program
under title XVI, assign duties, and delegate, or authorize
successive redelegations of, authority to act and to render
decisions, to such officers and employees as the Board may
find necessary. Within the limitations of such delegations,
redelegations, or assignments, all official acts and
decisions of such officers and employees shall have the same
force and effect as though performed or rendered by the
Board.
``Executive Director
``(b)(1) There shall be in the Administration an Executive
Director who shall be appointed by the Social Security Board.
``(2)(A) The Executive Director shall be appointed for a
term of four years. An individual appointed to a term of
office as Executive Director after the commencement of such
term of office may serve under such appointment only for the
remainder of such term. An individual may, at the request of
the Chairperson of the Board, serve as Executive Director
after the expiration of his or her term for not more than one
year until his or her successor has taken office. An
individual may be appointed as Executive Director for
additional terms.
``(B) An individual may be removed from the office of
Executive Director before completion of his or her term only
for cause found by the Board.
``(3) The Executive Director shall be compensated at the
rate provided for level II of the Executive Schedule.
``(4) The Executive Director shall--
``(A) constitute the chief operating officer of the
Administration, responsible for administering, in accordance
with applicable statutes and regulations, the old-age,
survivors, and disability insurance program under title II
and the supplemental security income program under title XVI,
``(B) maintain an efficient and effective operational
structure for the Administration,
``(C) implement the long-term plans of the Board to promote
and maintain the effective implementation of such programs,
``(D) report annually to the Board on program costs under
titles II and XVI, make annual budgetary recommendations to
the Board for the ongoing administrative costs of the
Administration under this Act, and defend the recommendations
before the Board,
``(E) advise the Board and the Congress on the effect on
the administration of such programs of proposed legislative
changes in such programs,
``(F) serve as Secretary of the Board of Trustees of the
Federal Old-Age and Survivors Insurance Trust Fund and the
Federal Disability Insurance Trust Fund,
``(G) report in December of each year to the Board for
transmittal to the Congress concerning the administrative
endeavors and accomplishments of the Administration, and
``(H) carry out such additional duties as are assigned by
the Board from time to time.
Any reference to the Board in this Act or any other provision
of law in connection with the exercise of a function of the
Board which is delegated to the Executive Director pursuant
to this section shall be considered a reference to the
Executive Director.
``Deputy Director of Social Security
``(c)(1) There shall be in the Office of the Executive
Director a Deputy Director, who shall be appointed by and
serve at the pleasure of the Executive Director.
``(2) The Deputy Director shall be compensated at the rate
provided for level III of the Executive Schedule.
``(3) The Deputy Director shall perform such duties and
exercise such powers as the Executive Director shall from
time to time assign or delegate. The Deputy Director shall be
Acting Executive Director of the Administration during the
absence or disability of the Executive Director and, unless
the Board designates another officer of the Government as
Acting Executive Director, in the event of a vacancy in the
office of the Executive Director.
``General Counsel
``(d)(1) There shall be in the Administration a General
Counsel, who shall be appointed by and serve at the pleasure
of the Board. The General Counsel shall be the principal
legal officer in the Administration.
``(2) The General Counsel shall be compensated at the rate
provided for level IV of the Executive Schedule.
``Inspector General
``(e)(1) There shall be in the Administration an Office of
the Inspector General. Such Office shall be headed by an
Inspector General appointed in accordance with the Inspector
General Act of 1978.
``(2) The Inspector General shall be compensated at the
rate provided for level IV of the Executive Schedule.
``Beneficiary Ombudsman
``(f)(1) There shall be in the Administration an Office of
the Beneficiary Ombudsman, to be headed by a Beneficiary
Ombudsman appointed by the Board.
``(2)(A) The Beneficiary Ombudsman shall be appointed for a
term of five years, except that the individual first
appointed to the Office of Beneficiary Ombudsman shall be
appointed for a term ending September 30, 2000. An individual
appointed to a term of office as Beneficiary Ombudsman after
the commencement of such term may serve under such
appointment only for the remainder of such term. An
individual may, at the request of the Chairperson of the
Board, serve as Beneficiary Ombudsman after the expiration of
his or her term for not more than one year until his or her
successor has taken office. An individual may be appointed as
Beneficiary Ombudsman for additional terms.
``(B) An individual may be removed from the office of
Beneficiary Ombudsman before completion of his or her term
only for cause found by the Board.
``(3) The Beneficiary Ombudsman shall be compensated at the
rate provided for level V of the Executive Schedule.
``(4) The duties of the Beneficiary Ombudsman are as
follows:
``(A) To represent within the Administration's
decisionmaking process the interests and concerns of
beneficiaries under the old-age, survivors, and disability
insurance program under title II and the supplemental
security income program under title XVI.
``(B) To review the Administration's policies and
procedures for possible adverse effects on such
beneficiaries.
``(C) To recommend within the Administration's
decisionmaking process changes in policies which have caused
problems for such beneficiaries.
``(D) To help resolve the problems under such programs of
individual beneficiaries in unusual or difficult
circumstances, as determined by the Administration.
``(E) To represent within the Administration's
decisionmaking process the views of beneficiaries in the
design of forms and the issuance of instructions.
``(5) The Board shall assure that the Office of the
Beneficiary Ombudsman has staff sufficient to enable the
Beneficiary Ombudsman to efficiently carry out his or her
duties. Such staff shall be located in the regional offices,
program centers, and central office of the Administration.
``(6) The annual report of the Board under section 704
shall include a description of the activities of the
Beneficiary Ombudsman.
``Administrative Law Judge
``(g)(1) There shall be in the Administration an Office of
the Chief Administrative Law Judge, who shall be appointed by
the Board. The duty of the Chief Administrative Law Judge
shall be to administer the affairs of the administrative law
judges serving in the Administration in a manner so as to
ensure that hearings and other business are conducted by the
administrative law judges in accordance with applicable law
and regulations.
``(2) The Chief Administrative Law Judge shall report
directly to the Board.''.
(b) Conforming Amendments Relating to Composition of Board
of Trustees of OASDI Trust Funds.--Section 201(c) of such Act
(42 U.S.C. 401(c)) is amended--
(1) in the first sentence, by striking ``shall be composed
of'' and all that follows down through ``ex officio'' and
inserting the following: ``shall be composed of the members
of the Social Security Board, the Secretary of the Treasury,
the Secretary of Health and Human Services, all ex officio'';
(2) by inserting after the first sentence the following new
sentence: ``The Chairperson of the Social Security Board
shall be the Chairperson of the Board of Trustees.''; and
(3) by striking ``Commissioner of Social Security'' and
inserting ``Executive Director of the Social Security
Administration''.
(c) Interim Authority of the Commissioner.--The President
shall nominate for appointment the initial members of the
Social Security Board not later than April 1, 1995. In the
event that, as of October 1, 1995, all members of the Social
Security Board have not entered upon office, until all
members of the Board have entered upon office, the officer
serving on October 1, 1995, as Commissioner of Social
Security in the Department of Health and Human Services (or
Acting Commissioner, if applicable), or such officer's
successor, shall, while continuing to serve as Commissioner
of Social Security (or Acting Commissioner) in such
Department, serve as head of the Social Security
Administration established under section 701 of the Social
Security Act (as amended by this Act) and shall assume the
powers and duties of such Board and of the Executive Director
under such Act (as amended by this Act).
SEC. 103. PERSONNEL; BUDGETARY MATTERS; SEAL OF OFFICE.
Section 703 of the Social Security Act (42 U.S.C. 903) is
amended to read as follows:
``administrative duties of the social security board
``Personnel
``Sec. 703. (a)(1) The Social Security Board shall appoint
such additional officers and employees as it considers
necessary to carry out its functions. Except as otherwise
provided in any other provision of law, such officers and
employees shall be appointed, and their compensation shall be
fixed, in accordance with title 5, United States Code.
``(2) The Board may procure the services of experts and
consultants in accordance with the provisions of section 3109
of title 5, United States Code.
``(3) The Director of the Office of Personnel Management
shall authorize for the Administration a total number of
Senior Executive Service positions which is greater than the
number of such positions authorized in the Social Security
Administration in the Department of Health and Human Services
as of immediately before the date of the enactment of the
Social Security Administrative Reform Act of 1994, to the
extent that the greater number of such authorized positions
is specified in the comprehensive workforce plan as
established and revised by the Board under subsection (b)(1).
The total number of such positions authorized for the
Administration pursuant to such section 3133 shall not at any
time be less than the number of such authorized positions as
of immediately before such date.
``(4) In addition to the positions of the Administration in
the Executive Schedule specified in section 702, the
Administration is authorized six additional positions at
level IV of the Executive Schedule and six additional
positions at level V of the Executive Schedule.
``Budgetary Matters
``(b) Appropriations requests for staffing and personnel of
the Administration shall be based upon a comprehensive
workforce plan, which shall be established and revised from
time to time by the Board.
``Seal of Office
``(c) The Board shall cause a seal of office to be made for
the Administration of such design as the Board shall approve.
Judicial notice shall be taken of such seal.''.
SEC. 104. TRANSFERS TO THE NEW SOCIAL SECURITY
ADMINISTRATION.
(a) Functions.--There are transferred to the Social
Security Administration all functions carried out by the
Secretary of Health and Human Services with respect to the
programs and activities the administration of which is vested
in the Social Security Administration by reason of this Act
and the amendments made thereby. The Social Security Board
shall allocate such functions in accordance with sections
701, 702, and 703 of the Social Security Act (as amended by
this Act).
(b) Personnel, Assets, Etc.--(1) There are transferred from
the Department of Health and Human Services to the Social
Security Administration, for appropriate allocation by the
Social Security Board in the Social Security Administration--
(A) the personnel (other than administrative law judges)
employed in connection with the functions transferred by this
Act and the amendments made thereby, as considered
appropriate by the Board in consultation with the Secretary
of Health and Human Services,
(B) such number of administrative law judges as are
necessary to carry out the functions transferred by this Act
and the amendments made thereby, as determined by the Board
in consultation with the Secretary of Health and Human
Services, and
(C) the assets, liabilities, contracts, property, records,
and unexpended balance of appropriations, authorizations,
allocations, and other funds employed, held, or used in
connection with such functions, arising from such functions,
or available, or to be made available, in connection with
such functions.
(2) Unexpended funds transferred pursuant to this
subsection shall be used only for the purposes for which the
funds were originally authorized and appropriated.
(3) The Secretary of Health and Human Services shall
terminate--
(A) six positions in the Department of Health and Human
Services placed in level IV of the Executive Schedule (or
equivalent positions) other than positions specifically
required under section 5315 of title 5, United States Code,
or any other provision of law, and
(B) six positions in such Department placed in level V of
the Executive Schedule (or equivalent positions) other than
positions specifically required under section 5316 of such
title or any other provision of law.
(4) The transfer pursuant to this section of full-time
personnel (except special Government employees) and part-time
personnel holding permanent positions shall not cause any
such employees to be separated or reduced in grade or
compensation for 1 year after such transfer or October 1,
1995, whichever is later.
(c) Abolishment of Office of Commissioner in the Department
of Health and Human Services.--Effective upon the entry upon
office of all initial members of the Social Security Board
pursuant to section 702 of the Social Security Act (as
amended by this Act), the position of Commissioner of Social
Security in the Department of Health and Human Services is
abolished.
SEC. 105. TRANSITIONAL RULES.
(a) Interim Authority for Appointment and Compensation.--At
any time on or after the date of the enactment of this Act--
(1) any of the officers provided for in section 702 of the
Social Security Act (as amended by this Act) may enter upon
office, as provided in such section, and
(2) the Social Security Board, upon entry upon office of
all of the members thereof, may prescribe regulations
providing for the orderly transfer of proceedings before the
Secretary of Health and Human Services to the Social Security
Board.
Funds available to any official or component of the
Department of Health and Human Services, functions of which
are transferred to the Social Security Board or the Social
Security Administration by this Act, may be used, with the
approval of the Director of the Office of Management and
Budget, to pay the compensation and expenses of any officer
entering upon office pursuant to this section until such time
as funds for that purpose are otherwise available.
(b) Continuation of Orders, Determinations, Rules,
Regulations, Etc.--All orders, determinations, rules,
regulations, permits, contracts, collective bargaining
agreements, recognitions of labor organizations,
certificates, licenses, and privileges--
(1) which have been issued, made, promulgated, granted, or
allowed to become effective, in the exercise of functions (A)
which were exercised by the Secretary of Health and Human
Services (or his delegate), and (B) which relate to functions
which, by reason of this Act, the amendments made thereby,
and regulations prescribed thereunder, are vested in the
Social Security Board, and
(2) which are in effect immediately before October 1, 1995,
shall (to the extent that they relate to functions described
in paragraph (1)(B)) continue in effect according to their
terms until modified, terminated, suspended, set aside, or
repealed, in accordance with law, by such Board.
(c) Continuation of Proceedings.--The provisions of this
Act (including the amendments made thereby) shall not affect
any proceeding pending before the Secretary of Health and
Human Services immediately before October 1, 1995, with
respect to functions vested (by reason of this Act, the
amendments made thereby, and regulations prescribed
thereunder) in the Social Security Board, except that such
proceedings, to the extent that they relate to such
functions, shall continue before such Board. Orders shall be
issued under any such proceeding, appeals taken therefrom,
and payments shall be made pursuant to such orders, in like
manner as if this Act had not been enacted, and orders issued
in any such proceeding shall continue in effect until
modified, terminated, superseded, or repealed by such Board,
by a court of competent jurisdiction, or by operation of law.
(d) Continuation of Suits.--Except as provided in this
subsection--
(1) the provisions of this Act shall not affect suits
commenced prior to October 1, 1995; and
(2) in all such suits proceedings shall be had, appeals
taken, and judgments rendered, in the same manner and effect
as if this Act had not been enacted. No cause of action, and
no suit, action, or other proceeding commenced by or against
any officer in his official capacity as an officer of the
Department of Health and Human Services, shall abate by
reason of the enactment of this Act. Causes of action, suits,
actions, or other proceedings may be asserted by or against
the United States and the Social Security Administration, or
such official of such Administration as may be appropriate,
and, in any litigation pending immediately before October 1,
1995, the court may at any time, on its own motion or that of
a party, enter an order which will give effect to the
provisions of this subsection (including, where appropriate,
an order for substitution of parties).
(e) Continuation of Penalties.--This Act shall not have the
effect of releasing or extinguishing any criminal
prosecution, penalty, forfeiture, or liability incurred as a
result of any function which (by reason of this Act), the
amendments made thereby, and regulations prescribed
thereunder) is vested in the Social Security Board.
(f) Judicial Review.--Orders and actions of the Social
Security Board in the exercise of functions vested in such
Board under this Act (and the amendments made thereby) shall
be subject to judicial review to the same extent and in the
same manner as if such orders had been made and such actions
had been taken by the Secretary of Health and Human Services
in the exercise of such functions immediately before October
1, 1995. Any statutory requirements relating to notice,
hearings, action upon the record, or administrative review
that apply to any function so vested in such Board shall
continue to apply to the exercise of such function by such
Board.
(g) Exercise of Functions.--In the exercise of the
functions vested in the Social Security Board under this Act,
the amendments made thereby, and regulations prescribed
thereunder, such Board shall have the same authority as that
vested in the Secretary of Health and Human Services with
respect to the exercise of such functions immediately
preceding the vesting of such functions in such Board, and
actions of such Board shall have the same force and effect as
when exercised by such Secretary.
(h) Operation of Transitional Rules in the Event of Interim
Authority in the Commissioner.--For purposes of this section,
in any case in which the powers and duties to be transferred
to the Social Security Board are transferred to the
Commissioner of Social Security (or acting Commissioner) in
the Department of Health and Human Services for an interim
period pursuant to section 102(c), the preceding provisions
of this section shall apply with respect to the transfer of
such powers and duties to and from such Commissioner (or
acting Commissioner) pursuant to section 102(c) in the same
manner and to the same extent as they would have applied to a
direct transfer from the Secretary of Health and Human
Services to the Social Security Board if all members of the
Board had entered upon office.
SEC. 106. CONFORMING AMENDMENTS TO TITLES II AND XVI OF THE
SOCIAL SECURITY ACT.
(a) In General.--Title II of the Social Security Act (other
than section 201, section 218(d), section 226, section 226A,
and section 231(c)) and title XVI of such Act are each
amended--
(1) by striking, wherever it appears therein, ``Secretary
of Health and Human Services'' and inserting ``Social
Security Board'';
(2) by striking, wherever it appears therein, ``Department
of Health and Human Services'' and inserting ``Social
Security Administration'';
(3) by striking, wherever it appears therein,
``Department'' (but only if it is not immediately succeeded
by the words ``of Health and Human Services'', and only if it
is used in reference to the Department of Health and Human
Services) and inserting ``Administration'';
(4) by striking, wherever it appears therein, each of the
following words (but, in the case of any such word only if
such word refers to the Secretary of Health and Human
Services): ``Secretary'', ``Secretary's'', ``his'', ``him'',
and ``he'', and inserting (in the case of the word
``Secretary'') ``Social Security Board'', (in the case of the
word ``Secretary's'') ``Board's'', (in the case of the word
``his'') ``the Board's'', (in the case of the word ``him'')
``the Board'', and (in the case of the word ``he'') ``the
Board''; and
(5) by striking, wherever it appears therein, ``Internal
Revenue Code of 1954'' and inserting ``Internal Revenue Code
of 1986''.
(b) Amendments to Section 218.--Section 218(d) of such Act
(42 U.S.C. 418(d)) is amended by striking ``Secretary'' each
place it appears in paragraphs (3) and (7) and inserting
``Social Security Board''.
(c) Amendments to Section 222.--Section 222(d) of such Act
(42 U.S.C. 422(d)) is amended--
(1) in the last sentence of paragraph (1), by striking
``Commissioner of Social Security'' and inserting ``Executive
Director of the Social Security Administration''; and
(2) in the first sentence of paragraph (2), by striking
``Commissioner of Social Security'' and inserting ``Executive
Director of the Social Security Administration''.
(d) Amendment to Section 231.--Section 231(c) of such Act
(42 U.S.C. 431(c)) is amended by striking ``Secretary
determines'' and inserting ``Social Security Board and the
Secretary jointly determine''.
(e) Amendment to Section 1615.--Section 1615(d) of such Act
(422 U.S.C. 1832d(d)) is amended by striking ``Commissioner
of Social Security'' and inserting ``Executive Director of
the Social Security Administration''.
SEC. 107. OTHER CONFORMING AMENDMENTS.
Title VII of the Social Security Act is amended--
(1) by striking section 704 (42 U.S.C. 904) and inserting
the following new section:
``reports
``Sec. 704. The Secretary and the Social Security Board
shall make full reports to Congress, within 120 days after
the beginning of each regular session, of the administration
of the functions with which they are charged under this Act.
In addition to the number of copies of such reports
authorized by other law to be printed, there is hereby
authorized to be printed not more than 5,000 copies of each
such report for use by the Secretary and Social Security
Board for distribution to Members of Congress and to State
and other public or private agencies or organizations
participating in or concerned with the programs provided for
in this Act.'';
(2) in section 709(b)(2) (42 U.S.C. 910(b)(2)), by striking
``(as estimated by the Secretary)'' and inserting ``, as
estimated by the Social Security Board or the Secretary
(whichever administers the program involved),''; and
(3) by adding at the end thereof the following new section:
``duties and authority of secretary
``Sec. 712. (a) The Secretary shall perform the duties
imposed upon him by this Act and shall also have the duty of
studying and making recommendations as to the most effective
methods of providing economic security and as to legislation
and matters of administrative policy concerning the programs
administered by the Secretary and related subjects; except
that nothing in this section shall be construed to require
the Secretary to make studies or recommendations with respect
to programs administered by the Social Security
Administration.
``(b) The Secretary is authorized to appoint and fix the
compensation of such officers and employees, and to make such
expenditures, as may be necessary for carrying out the
Secretary's functions under this Act. Appointments of
attorneys and experts may be made without regard to the civil
service laws.''.
SEC. 108. RULES OF CONSTRUCTION.
(a) References to the Department of Health and Human
Services.--Whenever any reference is made in any provision of
law (other than this Act or a provision of law amended by
this Act), regulation, rule, record, court order, or other
document to the Department of Health and Human Services with
respect to such Department's functions under the old-age,
survivors, and disability insurance program under title II of
the Social Security Act or the supplemental security income
program under title XVI of such Act, such reference shall be
considered a reference to the Social Security Administration.
(b) References to the Secretary of Health and Human
Services.--Whenever any reference is made in any provision of
law (other than this Act or a provision of law amended by
this Act), regulation, rule, record, court order, or other
document to the Secretary of Health and Human Services with
respect to such Secretary's functions under such programs,
such reference shall be considered a reference to the Social
Security Board.
(c) References to Other Officers and Employees.--Whenever
any reference is made in any provision of law (other than
this Act or a provision of law amended by this Act),
regulation, rule, record, or document to any other officer or
employee of the Department of Health and Human Services with
respect to such officer's or employee's functions under such
programs, such reference shall be considered a reference to
the appropriate officer or employee of the Social Security
Administration.
SEC. 109. EFFECTIVE DATES.
(a) In General.--Sections 101, 102(a), 103, 104, 106, 107,
and 108 of this Act (and the amendments made thereby) shall
take effect October 1, 1995.
(b) Exceptions.--Section 102(b) of this Act shall take
effect upon the entry upon office of all initial members of
the Social Security Board. Sections 102(c) and 105 of this
Act shall take effect on the date of the enactment of this
Act.
(c) New Spending Authority.--Any new spending authority
provided by this title shall be effective for any fiscal year
only to such extent or in such amounts as are provided in
advance in appropriation Acts.
TITLE II--IMPROVEMENTS TO THE OLD-AGE, SURVIVORS, AND DISABILITY
INSURANCE PROGRAM
SEC. 201. RESTRICTIONS ON PAYMENT OF BENEFITS BASED ON
DISABILITY TO SUBSTANCE ABUSERS.
(a) Amendments Relating to Benefits Based on Disability
Under Title II of the Social Security Act.--
(1) Required payment of benefits to representative
payees.--
(A) In general.--Section 205(j)(1) of the Social Security
Act (42 U.S.C. 405(j)(1)) is amended--
(i) by inserting after the first sentence the following new
sentence: ``In the case of an individual entitled to benefits
based on disability, if alcoholism or drug addiction is a
contributing factor material to the Secretary's determination
that the individual is under a disability, certification of
payment of such benefits to a representative payee shall be
deemed to serve the interest of such individual under this
title.''; and
(ii) in the last sentence, by inserting ``, if the interest
of the individual under this title would be served thereby,''
after ``alternative representative payee or''.
(B) Effective date.--The amendments made by subparagraph
(A) shall apply with respect to benefits for months beginning
after 180 days after the date of the enactment of this Act.
(C) Study regarding feasibility, cost, and equity of
requiring representative payees for all disability
beneficiaries suffering from alcoholism or drug addiction.--
(i) Study.--As soon as practicable after the date of the
enactment of this Act, the Secretary of Health and Human
Services shall conduct a study of the representative payee
program. In such study, the Secretary shall examine--
(I) the feasibility, cost, and equity of requiring
representative payees for all individuals entitled to
benefits based on disability under title II or XVI of the
Social Security Act who suffer from alcoholism or drug
addiction, irrespective of whether the alcoholism or drug
addiction was material in any case to the Secretary's
determination of disability,
(II) the feasibility of and appropriate timetable for
providing benefits through non-cash means, including (but not
limited to) vouchers, debit cards, and electronic benefits
transfer systems,
(III) the extent to which child beneficiaries are afflicted
by drug addition or alcoholism and ways of addressing such
affliction, including the feasibility of requiring treatment,
and
(IV) the extent to which children's representative payees
are afflicted by drug addiction or alcoholism, and methods to
identify children's representative payees afflicted by drug
addition or alcoholism and to ensure that benefits continue
to be provided to beneficiaries appropriately.
(ii) Report.--Not later than April 1, 1995, the Secretary
shall transmit to the Committee on Ways and Means of the
House of Representatives and the Committee on Finance of the
Senate a report setting forth the findings of the Secretary
based on such Study. Such report shall include such
recommendations for administrative or legislative changes as
the Secretary considers appropriate.
(2) Increased reliance on professional representative
payees.--
(A) Preference required for organizational representative
payees.--Section 205(j)(2)(C) of such Act (42 U.S.C.
405(j)(2)(C)) is amended by adding at the end the following
new clause:
``(v) In the case of an individual entitled to benefits
based on disability, if alcoholism or drug addiction is a
contributing factor material to the Secretary's determination
that the individual is under a disability, when selecting
such individual's representative payee, preference shall be
given to--
``(I) a community-based nonprofit social service agency
licensed or bonded by the State,
``(II) a State or local government agency whose mission is
to carry out income maintenance, social service, or health
care-related activities, or
``(III) a State or local government agency with fiduciary
responsibilities,
(or a designee of such an agency if the Secretary deems it
appropriate), unless the Secretary determines that selection
of such an agency would not be appropriate.''.
(B) Availability of public agencies and other qualified
organizations to serve as representative payees.--Section
205(j)(4) of such Act (42 U.S.C. 405(j)(4)) is amended--
(i) in subparagraph (A)--
(I) by striking ``exceed the lesser of--'' and inserting
``exceed--''; and
(II) by striking clauses (i) and (ii) and inserting the
following:
``(i) in any case in which an individual is entitled to
benefits based on disability and alcoholism or drug addiction
is a contributing factor material to the Secretary's
determination that the individual is under a disability, 10
percent of the monthly benefit involved, or
``(ii) in any other case, the lesser of--
``(I) 10 percent of the monthly benefit involved, or
``(II) $25.00 per month.'';
(ii) in subparagraph (B)--
(I) by inserting ``State or local government agency whose
mission is to carry out income maintenance, social service,
or health care-related activities, any State or local
government agency with fiduciary responsibilities, or any''
after ``means any'';
(II) by striking ``representative payee and which,'' and
inserting ``representative payee, if such agency,'';
(III) by striking ``, and'' at the end of clause (ii) and
inserting a period; and
(IV) by striking clause (iii); and
(iii) by striking subparagraph (D), effective July 1, 1994.
(C) Definition.--Section 205(j) of such Act (42 U.S.C.
405(j)) is amended by adding at the end the following new
paragraph:
``(7) For purposes of this subsection, the term `benefit
based on disability' of an individual means a disability
insurance benefit of such individual under section 223 or a
child's, widow's, or widower's insurance benefit of such
individual under section 202 based on such individual's
disability.''.
(3) Nonpayment or termination of benefits.--
(A) In general.--Section 225 of such Act (42 U.S.C. 425) is
amended--
(i) by striking the heading and inserting the following:
``additional rules relating to benefits based on disability
``Suspension of Benefits'';
(ii) by inserting before subsection (b) the following new
heading:
``Continued Payments During Rehabilitation Program'';
and
(iii) by adding at the end the following new subsection:
``Nonpayment or Termination of Benefits Where Entitlement Involves
Alcoholism or Drug Addiction
``(c)(1)(A) Notwithstanding any other provision of this
title, in the case of any individual entitled to benefits
based on disability, if alcoholism or drug addiction is a
contributing factor material to the Secretary's determination
that such individual is under a disability and such
individual is determined by the Secretary not to be in
compliance with the requirements of this subsection for a
month, such benefits shall be suspended for a period
commencing with such month and ending with the month
preceding the first month, after the determination of
noncompliance, in which such individual demonstrates that he
or she has reestablished and maintained compliance with such
requirements for the applicable period specified in paragraph
(3).
``(B) For purposes of this subsection, in the case of an
individual who is entitled to benefits based on disability
for the first month ending after 180 days after the date of
the enactment of the Social Security Administrative Reform
Act of 1994, if such individual has a primary diagnosis of
alcoholism or drug addiction, such alcoholism or drug
addiction shall be treated as a contributing factor material
to the Secretary's determination of disability.
``(2)(A) An individual described in paragraph (1) is in
compliance with the requirements of this subsection for a
month if such individual in such month undergoes any medical
or psychological treatment that may be appropriate, for such
individual's condition diagnosed as substance abuse or
alcohol abuse and for the stage of such individual's
rehabilitation, at an institution or facility approved for
purposes of this subsection by the Secretary, and complies in
such month with the terms, conditions, and requirements of
such treatment and with requirements imposed by the Secretary
under paragraph (6).
``(B) An individual described in paragraph (1) shall not be
determined to be not in compliance with the requirements of
this subsection for a month if access by such individual to
such treatment is not reasonably available for that month, as
determined under regulations of the Secretary.
``(3) The applicable period specified in this paragraph
is--
``(A) 2 consecutive months, in the case of a first
determination that an individual is not in compliance with
the requirements of this subsection,
``(B) 3 consecutive months, in the case of the second such
determination with respect to the individual, and
``(C) 6 consecutive months, in the case of the third or
subsequent such determination with respect to the individual.
``(4) In any case in which an individual's benefit is
suspended for a period of 12 consecutive months for failure
to comply with treatment described in paragraph (2) of this
subsection, the month following such period shall be deemed,
for purposes of section 223(a)(1) or subsection (d)(1)(G)(i),
(e)(1), or (f)(1) of section 202 (as applicable), as the
termination month with respect to such entitlement.
``(5)(A) Subject to subparagraph (B), monthly insurance
benefits under this title which would be payable to any
individual (other than the disabled individual to whom
benefits are not payable by reason of this subsection) on the
basis of the wages and self-employment income of such
disabled individual but for the provisions of paragraph (1)
or (4), shall be payable as though such disabled individual
were receiving such benefits which are not payable under this
subsection (and, in the case of a disabled individual whose
entitlement is terminated under paragraph (4), as though such
disabled individual's entitlement were not terminated).
``(B) If the monthly insurance benefits of a disabled
individual referred to in subparagraph (A) are not payable by
reason of termination of entitlement under paragraph (4),
monthly insurance benefits which are payable to any other
individual on the basis of the wages and self-employment
income of such disabled individual pursuant to subparagraph
(A) shall not be payable for any month after 2 years after
the last month of such entitlement.
``(6)(A) The Secretary shall provide for the monitoring and
testing of all individuals who are receiving benefits under
this title and who as a condition of payment of such benefits
are required to be undergoing treatment and complying with
the terms, conditions, and requirements thereof as described
in paragraph (2)(A), in order to assure such compliance and
to determine the extent to which the imposition of such
requirements is contributing to the achievement of the
purposes of this title. The Secretary shall annually submit
to the Congress a full and complete report on the Secretary's
activities under this paragraph. Each such annual report
shall include the number and percentage of such individuals
who did not receive regular drug testing during the year
covered by the report.
``(B) The Secretary, in consultation with drug and alcohol
treatment professionals, shall issue regulations--
``(i) defining appropriate treatment for alcoholics and
drug addicts who are subject to required medical or
psychological treatment under this subsection, and
``(ii) establishing guidelines to be used to review and
evaluate their compliance, including measures of the progress
of participants in such programs.
``(C)(i) For purposes of carrying out the requirements of
subparagraphs (A) and (B), the Secretary shall establish in
each State a referral and monitoring agency for such State.
``(ii) Each referral and monitoring agency for a State
shall--
``(I) identify appropriate placements, for individuals
residing in such State who are entitled to benefits based on
disability and with respect to whom alcoholism or drug
addiction is a contributing factor material to the
Secretary's determination that they are under a disability,
where they may obtain treatment described in paragraph
(2)(A),
``(II) refer such individuals to such placements for such
treatment, and
``(III) monitor compliance with the requirements of
paragraph (2)(A) by individuals who are referred by the
agency to such placements and promptly report failures to
comply to the Secretary.
``(7) In the case of any individual who is entitled to a
benefit based on disability for any month, if alcoholism or
drug addiction is a contributing factor material to the
Secretary's determination that the individual is under a
disability, payment of any past-due monthly insurance
benefits under this title to which such individual is
entitled shall be made in any month only to the extent that
the sum of--
``(A) the amount of such past-due benefit paid in such
month, and
``(B) the amount of any benefit for the preceding month
under such current entitlement which is payable in such
month,
does not exceed 200 percent of the amount of such benefit for
the preceding month.
``(8) In the case of any individual entitled to benefits
based on disability, if alcoholism or drug addiction is a
contributing factor material to the Secretary's determination
that such individual is under a disability, the month
following the 36-month period beginning with such
individual's first month of entitlement shall be deemed, for
purposes of section 223(a)(1) or subsection (d)(1)(G)(i),
(e)(1), or (f)(1) of section 202 (as applicable), as the
termination month with respect to such entitlement, and such
individual shall be deemed not to be entitled to any past-due
benefits under such entitlement remaining unpaid as of the
end of such 36-month period. Such individual may not be
entitled to benefits based on disability for any month after
such 36-month period if, with respect to such entitlement,
alcoholism or drug addition is a contributing factor material
to the Secretary's determination that such individual is
under a disability.
``(9) For purposes of this subsection, the term `benefit
based on disability' of an individual means a disability
insurance benefit of such individual under section 223 or a
child's, widow's, or widower's insurance benefit of such
individual under section 202 based on the disability of such
individual.''.
(B) Preservation of medicare benefits.--Section 226 of such
Act (42 U.S.C. 426) is amended by adding at the end the
following:
``(i) For purposes of this section, each person whose
benefit for any month is not payable by reason of paragraph
(1) of section 225(c) (and is not terminated by reason of
paragraph (4) or (8) of section 225(c)) shall be treated as
entitled to such benefit for such month if such person would
be entitled to such benefit for such month in the absence of
such section.''.paragraph (other than paragraphs (6)(C) and
(8) of section 225(c) of the Social Security Act added by
this paragraph) shall apply with respect to benefits based on
disability (as defined in section 225(c)(9) of the Social
Security Act, added by this section) of individuals becoming
entitled to such benefits for months beginning after 180 days
after the date of the enactment of this Act. Section
225(c)(6)(C) of the Social Security Act shall take effect 180
days after the date of the enactment of this Act. Section
225(c)(8) of the Social Security Act (added by this section)
shall apply with respect to benefits for months ending after
180 days after the date of the enactment of this Act, and,
for purposes of such section 225(c)(8), in the case of any
individual entitled to benefits based on disability (as so
defined) for the first month ending after 180 days after the
date of the enactment of this Act, such month shall be
treated as such individual's first month of entitlement to
such benefits.
(4) Irrelevance of legality of services performed in
determining substantial gainful activity.--
(A) In general.--Section 223(d)(4) of such Act (42 U.S.C.
423(d)(4)) is amended--
(i) by inserting ``(A)'' after ``(4)''; and
(ii) by adding at the end the following new subparagraph:
``(B) In determining under subparagraph (A) when services
performed or earnings derived from services demonstrate an
individual's ability to engage in substantial gainful
activity, the Secretary apply the criteria described in
subparagraph (A) with respect to services performed by any
individual without regard to the legality of such
services.''.
(B) Effective date.--The amendments made by this paragraph
shall take effect on the date of the enactment of this Act.
(b) Amendments Relating to Supplemental Security Income
Benefits Under Title XVI of the Social Security Act.--
(1) Required payment of benefits to representative
payees.--
(A) In general.--Section 1631(a)(2)(A) of the Social
Security Act (42 U.S.C. 1383(a)(2)(A)) is amended--
(i) in clause (ii), by adding at the end the following:
``In the case of an individual entitled to benefits under
this title by reason of disability, if alcoholism or drug
addiction is a contributing factor material to the
Secretary's determination that the individual is disabled,
the payment of such benefits to a representative payee shall
be deemed to serve the interest of such individual under this
title.''; and
(ii) in clause (iii), by striking ``to the individual or
eligible spouse or to an alternative representative payee of
the individual or eligible spouse'' and inserting ``to an
alternative representative payee of the individual or
eligible spouse or, if the interest of the individual under
this title would be served thereby, to the individual or
eligible spouse''.
(B) Conforming amendment.--Section 1631(a)(2)(B)(viii)(II)
of such Act (42 U.S.C. 1383(a)(2)(B)(viii)(II)) is amended by
striking ``15 years'' and all that follows and inserting ``of
15 years, or (if alcoholism or drug addition is a
contributing factor material to the Secretary's determination
that the individual is disabled) is entitled to benefits
under this title by reason of disability.''.
(C) Effective date.--The amendments made by subparagraphs
(A) and (B) shall apply with respect to benefits for months
beginning after 180 days after the date of the enactment of
this Act.
(2) Increased reliance on professional representative
payees.--
(A) Preference required for organizational representative
payees.--Section 1631(a)(2)(B) of such Act (42 U.S.C.
1383(a)(2)(B)) is amended--
(i) by redesignating clauses (vii) through (xii) as clauses
(viii) through (xiii), respectively;
(ii) by inserting after clause (vi) the following:
``(vii) In the case of an individual entitled to benefits
under this title by reason of disability, if alcoholism or
drug addiction is a contributing factor material to the
Secretary's determination that the individual is disabled,
when selecting such individual's representative payee,
preference shall be given to--
``(I) a community-based nonprofit social service agency
licensed or bonded by the State;
``(II) a State or local government agency whose mission is
to carry out income maintenance, social service, or health
care-related activities; or
``(III) a State or local government agency with fiduciary
responsibilities,
(or a designee of such an agency if the Secretary deems it
appropriate), unless the Secretary determines that selection
of such an agency would not be appropriate.'';
(iii) in clause (viii) (as so redesignated), by striking
``clause (viii)'' and inserting ``clause (ix)'';
(iv) in clause (ix) (as so redesignated), by striking
``(vii)'' and inserting ``(viii)'';
(v) in clause (xiii) (as so redesignated)--
(I) by striking ``(xi)'' and inserting ``(xii)''; and
(II) by striking ``(x)'' and inserting ``(xi)''.
(B) Availability of public agencies and other qualified
organizations to serve as representative payees.--Section
1631(a)(2)(D) of such Act (42 U.S.C. 1383(a)(2)(D)) is
amended--
(i) in clause (i)--
(I) by striking ``exceed the lesser of--'' and inserting
``exceed--''; and
(II) by striking subclauses (I) and (II) and inserting the
following:
``(I) in any case in which an individual is entitled to
benefits under this title by reason of disability and
alcoholism or drug addiction is a contributing factor
material to the Secretary's determination that the individual
is disabled, 10 percent of the monthly benefit involved, or
``(II) in any other case, the lesser of--
``(aa) 10 percent of the monthly benefit involved, or
``(bb) $25.00 per month.'';
(ii) in clause (ii)--
(I) by inserting ``State or local government agency whose
mission is to carry out income maintenance, social service,
or health care-related activities, any State or local
government agency with fiduciary responsibilities, or any''
after ``means any'';
(II) by inserting a comma after ``service agency'';
(III) by adding ``and'' at the end of subclause (I); and
(IV) in subclause (II)--
(aa) by adding ``and'' at the end of item (aa);
(bb) by striking ``; and'' at the end of item (bb) and
inserting a period; and
(cc) by striking item (cc); and
(iii) by striking clause (iv), effective July 1, 1994.
(3) Nonpayment or termination of benefits.--
(A) In general.--Section 1611(e)(3) of such Act (42 U.S.C.
1382(e)(3)), is amended by redesignating subparagraph (B) as
subparagraph (C) and by inserting after subparagraph (A) the
following:
``(B)(i) Notwithstanding any other provision of this title,
in the case of any individual entitled to benefits under this
title solely by reason of disability, if alcoholism or drug
addiction is a contributing factor material to the
Secretary's determination that such individual is disabled
and such individual is determined by the Secretary not to be
in compliance with the requirements of this subparagraph for
a month, such benefits shall be suspended for a period
commencing with such month and ending with the month
preceding the first month, after the determination of
noncompliance, in which such individual demonstrates that he
or she has reestablished and maintained compliance with such
requirements for the applicable period specified in clause
(iii).
``(ii)(I) An individual described in clause (i) is in
compliance with the requirements of this subparagraph for a
month if the individual in such month undergoes any medical
or psychological treatment that may be appropriate, for the
individual's condition diagnosed as substance abuse or
alcohol abuse and for the stage of the individual's
rehabilitation, at an institution or facility approved for
purposes of this subparagraph by the Secretary, and complies
in such month with the terms, conditions, and requirements of
such treatment and with requirements imposed by the Secretary
under subparagraph (C).
``(II) An individual described in clause (i) shall not be
determined to be not in compliance with the requirements of
this subparagraph for a month if access by such individual to
such treatment is not reasonably available for the month, as
determined under regulations of the Secretary.
``(iii) The applicable period specified in this clause is--
``(I) 2 consecutive months, in the case of a 1st
determination that an individual is not in compliance with
the requirements of this subparagraph;
``(II) 3 consecutive months, in the case of the 2nd such
determination with respect to the individual; or
``(III) 6 consecutive months, in the case of the 3rd or
subsequent such determination with respect to the individual.
``(iv) An individual shall not be an eligible individual
for purposes of this title for the 12-month period that
begins with the end of any period of 12 consecutive months
for which the benefits of the individual under this title
have been suspended by reason of this subparagraph.
``(v) In the case of any individual entitled to benefits
under this title by reason of disability, if alcoholism or
drug addiction is a contributing factor material to the
Secretary's determination that such individual is disabled,
such individual may not be entitled to such benefits by
reason of disability (or any past-due benefits under such
entitlement) for any month after the 36-month period
beginning with such individual's first month of such
entitlement, notwithstanding section 1619(a).
``(vi)(I) The Secretary shall not, in a month, pay to an
individual described in clause (i) benefits under this title
the payment of which is past due, in an amount that exceeds
the amount of benefits under this title which are payable to
the individual for the month and the payment of which is not
past due.
``(II) As used in subclause (I) of this clause, the term
`benefits under this title' includes supplementary payments
of the type described in section 1616(a) and payments
pursuant to an agreement entered into under section 212(a) of
Public Law 93-66.''.
(B) Referral, monitoring, and treatment.--Section
1611(e)(3)(C) of such Act (42 U.S.C. 1382(e)(3)(C)), as so
designated by the amendment made by subparagraph (A) of this
paragraph, is amended--
(i) by adding at the end the following: ``Each such annual
report shall include the number and percentage of such
individuals who did not receive regular drug testing during
the year covered by the report.'';
(ii) by inserting ``(i)'' after ``(C)''; and
(iii) by adding after and below the end following:
``(ii) The Secretary, in consultation with drug and alcohol
treatment professionals, shall issue regulations--
``(I) defining appropriate treatment for alcoholics and
drug addicts who are subject to required medical or
psychological treatment under this subparagraph; and
``(II) establishing guidelines to be used to review and
evaluate their compliance, including measures of the progress
of participants in such programs.
``(iii)(I) For purposes of carrying out the requirements of
clauses (i) and (ii), the Secretary shall establish in each
State a referral and monitoring agency for the State.
``(II) Each referral and monitoring agency for a State
shall--
``(aa) identify appropriate placements, for individuals
residing in the State who are entitled to benefits under this
title by reason of disability and with respect to whom
alcoholism or drug addiction is a contributing factor
material to the Secretary's determination that they are
disabled, where they may obtain treatment described in
subparagraph (B)(ii)(I);
``(bb) refer such individuals to such placements for such
treatment; and
``(cc) monitor compliance with the requirements of
subparagraph (B) by individuals who are referred by the
agency to such placements, and promptly report to the
Secretary any failure to comply with such requirements.''.
(C) Preservation of medicaid benefits.--Section 1634 of
such Act (42 U.S.C. 13283c) is amended by adding at the end
the following:
``(e) Each person to whom benefits under this title by
reason of disability are not payable for any month solely by
reason of section 1611(e)(3)(B) shall be treated, for
purposes of title XIX, as receiving benefits under this title
for such month.''.
(D) Conforming amendments.--Section 1611(e)(3) of such Act
(42 U.S.C. 1382(e)(3)), as amended by subparagraphs (A) and
(B) of this paragraph, is amended--
(i) in subparagraph (A), by striking ``(B)'' and inserting
``(C)''; and
(ii) in subparagraph (C), by inserting ``or (B)'' after
``(A)''.
(E) Effective date.--
(i) In general.--Except as provided in clauses (ii) and
(iii), the amendments made by this paragraph shall apply with
respect to benefits for months beginning after 180 days after
the date of the enactment of this Act.
(ii) Time limitation on benefits.--Section 1611(e)(3)(B)(v)
of the Social Security Act (as added by the amendment made by
subparagraph (A) of this paragraph) shall apply with respect
to benefits for months ending after 180 days after the date
of the enactment of this Act, and, for purposes of such
section, in the case of any individual entitled to benefits
by reason of disability for the first month ending after 180
days after the date of the enactment of this Act, such month
shall be treated as such individual's first month of
entitlement to such benefits.
(iii) Establishment of referral and monitoring agencies.--
Section 1611(e)(3)(C)(iii) of the Social Security Act (as
added by the amendment made by subparagraph (B)(iii) of this
paragraph) shall take effect 180 days after the date of the
enactment of this Act.
(4) Irrelevance of legality of substantial gainful
activity.--
(A) In general.--Section 1614(a)(3)(D) of such Act (42
U.S.C. 1382c(a)(3)(D)) is amended by adding at the end the
following: ``The Secretary shall make determinations under
this title with respect to substantial gainful activity,
without regard to the legality of the activity.''.
(B) Effective date.--The amendment made by subparagraph (A)
shall take effect on the date of the enactment of this Act.
(c) Effective Date.--The amendments made by the preceding
provisions of this section shall apply to benefits payable
for months beginning 180 or more days after the date of the
enactment of this Act.
(d) Demonstration Projects.--
(1) In general.--The Secretary of Health and Human Services
shall develop and carry out demonstration projects designed
to explore innovative referral, monitoring, and treatment
approaches with respect to--
(A) individuals who are entitled to disability insurance
benefits or child's, widow's, or widower's insurance benefits
based on disability under title II of the Social Security
Act, and
(B) individuals who are eligible for supplemental security
income benefits under title XVI of such Act based solely on
disability,
in cases in which alcoholism or drug addiction is a
contributing factor material to the Secretary's determination
that individuals are under a disability.
(2) Scope.--The demonstration projects developed under
paragraph (1) shall be of sufficient scope and shall be
carried out on a wide enough scale to permit a thorough
evaluation of the alternative approaches under consideration
while giving assurance that the results derived from the
projects will obtain generally in the operation of the
programs involved without committing such programs to the
adoption of any particular system either locally or
nationally.
(3) Final report.--The Secretary shall submit to the
Committee on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate no later than
December 31, 1997, a final report on the demonstration
projects carried out under this subsection, together with any
related data and materials which the Secretary may consider
appropriate. The authority under this section shall terminate
upon the transmittal of such final report.
SEC. 202. ISSUANCE OF PHYSICAL DOCUMENTS IN THE FORM OF
BONDS, NOTES, OR CERTIFICATES TO THE SOCIAL
SECURITY TRUST FUNDS.
(a) Requirement that Obligations Issued to the OASDI Trust
Funds Be Evidenced by Paper Instruments in the Form of Bonds,
Notes, or Certificates of Indebtedness Setting Forth Their
Terms.--Section 201(d) of the Social Security Act (42 U.S.C.
401(d)) is amended by inserting after the fifth sentence the
following new sentence: ``Each obligation issued for purchase
by the Trust Funds under this subsection shall be evidenced
by a paper instrument in the form of a bond, note, or
certificate of indebtedness issued by the Secretary of the
Treasury setting forth the principal amount, date of
maturity, and interest rate of the obligation, and stating on
its face that the obligation shall be incontestable in the
hands of the Trust Fund to which it is issued, that the
obligation is supported by the full faith and credit of the
United States, and that the United States is pledged to the
payment of the obligation with respect to both principal and
interest.''.
(b) Payment to the OASDI Trust Funds from the General Fund
of the Treasury of Interest on Obligations, and of Proceeds
from the Sale or Redemption of Obligations, Required to Be in
the Form of Checks.--Section 201(f) of such Act (42 U.S.C.
401(f)) is amended by adding at the end the following new
sentence: ``Payment from the general fund of the the Treasury
to either of the Trust Funds of any such interest or proceeds
shall be in the form of paper checks drawn on such general
fund to the order of such Trust Fund.''.
(c) Effective Date.--
(1) In general.--The amendments made by this section shall
apply with respect to obligations issued, and payments made,
after 60 days after the date of the enactment of this Act.
(2) Treatment of outstanding obligations.--Not later than
60 days after the date of the enactment of this Act, the
Secretary of the Treasury shall issue to the Federal Old-Age
and Survivors Insurance Trust Fund or the Federal Disability
Insurance Trust Fund, as applicable, a paper instrument, in
the form of a bond, note, or certificate of indebtedness, for
each obligation which has been issued to the Trust Fund under
section 201(d) of the Social Security Act and which is
outstanding as of such date. Each such document shall set
forth the principal amount, date of maturity, and interest
rate of the obligation, and shall state on its face that the
obligation shall be incontestable in the hands of the Trust
Fund to which it was issued, that the obligation is supported
by the full faith and credit of the United States, and that
the United States is pledged to the payment of the obligation
with respect to both principal and interest.
SEC. 203. EXPLICIT REQUIREMENTS FOR MAINTENANCE OF TELEPHONE
ACCESS TO LOCAL OFFICES OF THE SOCIAL SECURITY
ADMINISTRATION.
(a) Maintenance of Service to Local Offices.--
(1) In general.--Section 5110(a) of the Omnibus Budget
Reconciliation Act of 1990 (104 Stat. 1388-272) is amended by
adding at the end the following new sentence: ``In carrying
out the requirements of the preceding sentence, the Secretary
shall reestablish and maintain in service at least the same
number of telephone lines to each such local office as was in
place as of such date, including telephone sets for
connections to such lines.''.
(2) Effective date.--The Secretary of Health and Human
Services shall ensure that the requirements of the amendment
made by paragraph (1) are carried out no later than 90 days
after the date of the enactment of this Act.
(3) GAO report.--The Comptroller General of the United
States shall make an independent determination of the number
of telephone lines to each local office of the Social
Security Administration which are in place as of 90 days
after the enactment of this Act and shall report his findings
to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate no
later than 150 days after the date of the enactment of this
Act.
(b) Maintenance of Toll-Free Telephone Number Service.--The
Secretary of Health and Human Services shall ensure that
toll-free telephone service provided by the Social Security
Administration is maintained at a level which is at least
equal to that in effect on the date of the enactment of this
Act.
SEC. 204. EXPANSION OF STATE OPTION TO EXCLUDE SERVICE OF
ELECTION OFFICIALS OR ELECTION WORKERS FROM
COVERAGE.
(a) Limitation on Mandatory Coverage of State Election
Officials and Election Workers Without State Retirement
System.--
(1) Amendment to social security act.--Section
210(a)(7)(F)(iv) of the Social Security Act (42 U.S.C.
410(a)(7)(F)(iv)) (as amended by section 11332(a) of the
Omnibus Budget Reconciliation Act of 1990) is amended by
striking ``$100'' and inserting ``$1,000 with respect to
service performed during 1995, and the adjusted amount
determined under section 218(c)(8)(B) for any subsequent year
with respect to service performed during such subsequent
year''.
(2) Amendment to fica.--Section 3121(b)(7)(F)(iv) of the
Internal Revenue Code of 1986 (as amended by section 11332(b)
of the Omnibus Budget Reconciliation Act of 1990) is amended
by striking ``$100'' and inserting ``$1,000 with respect to
service performed during 1995, and the adjusted amount
determined under section 218(c)(8)(B) of the Social Security
Act for any subsequent year with respect to service performed
during such subsequent year''.
(b) Conforming Amendments Relating to Medicare Qualified
Government Employment.--
(1) Amendment to social security act.--Section 210(p)(2)(E)
of the Social Security Act (42 U.S.C. 410(p)(2)(E)) is
amended by striking ``$100'' and inserting ``$1,000 with
respect to service performed during 1995, and the adjusted
amount determined under section 218(c)(8)(B) for any
subsequent year with respect to service performed during such
subsequent year''.
(2) Amendment to fica.--Section 3121(u)(2)(B)(ii)(V) of the
Internal Revenue Code of 1986 is amended by striking ``$100''
and inserting ``$1,000 with respect to service performed
during 1995, and the adjusted amount determined under section
218(c)(8)(B) of the Social Security Act for any subsequent
year with respect to service performed during such subsequent
year''.
(c) Authority for States To Modify Coverage Agreements With
Respect to Election Officials and Election Workers.--Section
218(c)(8) of the Social Security Act (42 U.S.C. 418(c)(8)) is
amended--
(1) by striking ``on or after January 1, 1968,'' and
inserting ``at any time'';
(2) by striking ``$100'' and inserting ``$1,000 with
respect to service performed during 1995, and the adjusted
amount determined under subparagraph (B) for any subsequent
year with respect to service performed during such subsequent
year''; and
(3) by striking the last sentence and inserting the
following new sentence: ``Any modification of an agreement
pursuant to this paragraph shall be effective with respect to
services performed in and after the calendar year in which
the modification is mailed or delivered by other means to the
Secretary.''.
(d) Indexation of Exempt Amount.--Section 218(c)(8) of such
Act (as amended by subsection (c)) is further amended--
(1) by inserting ``(A)'' after ``(8)''; and
(2) by adding at the end the following new subparagraph:
``(B) For each year after 1995, the Secretary shall adjust
the amount referred to in subparagraph (A) at the same time
and in the same manner as is provided under section
215(a)(1)(B)(ii) with respect to the amounts referred to in
section 215(a)(1)(B)(i), except that--
``(i) for purposes of this subparagraph, 1993 shall be
substituted for the calendar year referred to in section
215(a)(1)(B)(ii)(II), and
``(ii) such amount as so adjusted, if not a multiple of
$100, shall be rounded to the next higher multiple of $100
where such amount is a multiple of $50 and to the nearest
multiple of $100 in any other case.
The Secretary shall determine and publish in the Federal
Register each adjusted amount determined under this
subparagraph not later than November 1 preceding the year for
which the adjustment is made.''.
(e) Effective Date.--The amendments made by subsections
(a), (b), and (c) shall apply with respect to service
performed on or after January 1, 1995.
SEC. 205. USE OF SOCIAL SECURITY NUMBERS BY STATES AND LOCAL
GOVERNMENTS AND FEDERAL DISTRICT COURTS FOR
JURY SELECTION PURPOSES.
(a) In General.--Section 205(c)(2) of the Social Security
Act (42 U.S.C. 405(c)(2)) is amended--
(1) in subparagraph (B)(i), by striking ``(E)'' in the
matter preceding subclause (I) and inserting ``(F)'';
(2) by redesignating subparagraphs (E) and (F) as
subparagraphs (F) and (G), respectively; and
(3) by inserting after subparagraph (D) the following:
``(E)(i) It is the policy of the United States that--
``(I) any State (or any political subdivision of a State)
may utilize the social security account numbers issued by the
Secretary for the additional purposes described in clause
(ii) if such numbers have been collected and are otherwise
utilized by such State (or political subdivision) in
accordance with applicable law, and
``(II) any district court of the United States may use, for
such additional purposes, any such social security account
numbers which have been so collected and are so utilized by
any State.
``(ii) The additional purposes described in this clause are
the following:
``(I) Identifying duplicate names of individuals on master
lists used for jury selection purposes.
``(II) Identifying on such master lists those individuals
who are ineligible to serve on a jury by reason of their
conviction of a felony.
``(iii) To the extent that any provision of Federal law
enacted before the date of the enactment of this subparagraph
is inconsistent with the policy set forth in clause (i), such
provision shall, on and after that date, be null, void, and
of no effect.
``(iv) For purposes of this subparagraph, the term `State'
has the meaning such term has in subparagraph (D).''.
(b) Effective Date.--The amendments made by subsection (a)
shall take effect on the date of the enactment of this Act.
SEC. 206. AUTHORIZATION FOR ALL STATES TO EXTEND COVERAGE TO
STATE AND LOCAL POLICEMEN AND FIREMEN UNDER
EXISTING COVERAGE AGREEMENTS.
(a) In General.--Section 218(l) of the Social Security Act
(42 U.S.C. 418(l)) is amended--
(1) in paragraph (1), by striking ``(1)'' after ``(l)'',
and by striking ``the State of'' and all that follows through
``prior to the date of enactment of this subsection'' and
inserting ``a State entered into pursuant to this section'';
and
(2) by striking paragraph (2).
(b) Conforming Amendment.--Section 218(d)(8)(D) of such Act
(42 U.S.C. 418(d)(8)(D)) is amended by striking ``agreements
with the States named in'' and inserting ``State agreements
modified as provided in''.
(c) Effective Date.--The amendments made by this section
shall apply with respect to modifications filed by States
after the date of the enactment of this Act.
SEC. 207. LIMITED EXEMPTION FOR CANADIAN MINISTERS FROM
CERTAIN SELF-EMPLOYMENT TAX LIABILITY.
(a) In General.--Notwithstanding any other provision of
law, if--
(1) an individual performed services described in section
1402(c)(4) of the Internal Revenue Code of 1986 which are
subject to tax under section 1401 of such Code,
(2) such services were performed in Canada at a time when
no agreement between the United States and Canada pursuant to
section 233 of the Social Security Act was in effect, and
(3) such individual was required to pay contributions on
the earnings from such services under the social insurance
system of Canada,
then such individual may file a certificate under this
section in such form and manner, and with such official, as
may be prescribed in regulations issued under chapter 2 of
such Code. Upon the filing of such certificate,
notwithstanding any judgment which has been entered to the
contrary, such individual shall be exempt from payment of
such tax with respect to services described in paragraphs (1)
and (2) and from any penalties or interest for failure to pay
such tax or to file a self-employment tax return as required
under section 6017 of such Code.
(b) Period for Filing.--A certificate referred to in
subsection (a) may be filed only during the 180-day period
commencing with the date on which the regulations referred to
in subsection (a) are issued.
(c) Taxable Years Affected by Certificate.--A certificate
referred to in subsection (a) shall be effective for taxable
years ending after December 31, 1978, and before January 1,
1985.
(d) Restriction on Crediting of Exempt Self-Employment
Income.--In any case in which an individual is exempt under
this section from paying a tax imposed under section 1401 of
the Internal Revenue Code of 1986, any income on which such
tax would have been imposed but for such exemption shall not
constitute self-employment income under section 211(b) of the
Social Security Act (42 U.S.C. 411(b)), and, if such
individual's primary insurance amount has been determined
under section 215 of such Act (42 U.S.C. 415),
notwithstanding section 215(f)(1) of such Act, the Secretary
of Health and Human Services shall recompute such primary
insurance amount so as to take into account the provisions of
this subsection. The recomputation under this subsection
shall be effective with respect to benefits for months
following approval of the certificate of exemption.
SEC. 208. EXCLUSION OF TOTALIZATION BENEFITS FROM THE
APPLICATION OF THE WINDFALL ELIMINATION
PROVISION.
(a) In General.--Section 215(a)(7) of the Social Security
Act (42 U.S.C. 415(a)(7)) is amended--
(1) in subparagraph (A), by striking ``but excluding'' and
all that follows through ``1937'' and inserting ``but
excluding (I) a payment under the Railroad Retirement Act of
1974 or 1937, and (II) a payment by a social security system
of a foreign country based on an agreement concluded between
the United States and such foreign country pursuant to
section 233''; and
(2) in subparagraph (E), by inserting after ``in the case
of an individual'' the following: ``whose eligibility for
old-age or disability insurance benefits is based on an
agreement concluded pursuant to section 233 or an
individual''.
(b) Conforming Amendment Relating to Benefits Under 1939
Act.--Section 215(d)(3) of such Act (42 U.S.C. 415(d)(3)) is
amended by striking ``but excluding'' and all that follows
through ``1937'' and inserting ``but excluding (I) a payment
under the Railroad Retirement Act of 1974 or 1937, and (II) a
payment by a social security system of a foreign country
based on an agreement concluded between the United States and
such foreign country pursuant to section 233''.
(c) Effective Date.--The amendments made by this section
shall apply (notwithstanding section 215(f)(1) of the Social
Security Act (42 U.S.C. 415(f)(1))) with respect to benefits
payable for months after January 1995.
SEC. 209. EXCLUSION OF MILITARY RESERVISTS FROM APPLICATION
OF THE GOVERNMENT PENSION OFFSET AND WINDFALL
ELIMINATION PROVISIONS.
(a) Exclusion from Government Pension Offset Provisions.--
Subsections (b)(4), (c)(2), (e)(7), (f)(2), and (g)(4) of
section 202 of the Social Security Act (42 U.S.C. 402 (b)(4),
(c)(2), (e)(7), (f)(2), and (g)(4)) are each amended--
(1) in subparagraph (A)(ii), by striking ``unless
subparagraph (B) applies.'';
(2) in subparagraph (A), by striking ``The'' in the matter
following clause (ii) and inserting ``unless subparagraph (B)
applies. The''; and
(3) in subparagraph (B), by redesignating the existing
matter as clause (ii), and by inserting before such clause
(ii) (as so redesignated) the following:
``(B)(i) Subparagraph (A)(i) shall not apply with respect
to monthly periodic benefits based wholly on service as a
member of a uniformed service (as defined in section
210(m)).''.
(b) Exclusion From Windfall Elimination Provisions.--
Section 215(a)(7)(A) of such Act (as amended by section
210(a) of this Act) and section 215(d)(3) of such Act (as
amended by section 210(b) of this Act) are each further
amended--
(1) by striking ``and'' before ``(II)''; and
(2) by striking ``section 233'' and inserting ``section
233, and (III) a payment based wholly on service as a member
of a uniformed service (as defined in section 210(m))''.
(c) Effective Date.--The amendments made by this section
shall apply (notwithstanding section 215(f) of the Social
Security Act) with respect to benefits payable for months
after January 1995.
SEC. 210. REPEAL OF THE FACILITY-OF-PAYMENT PROVISION.
(a) Repeal of Rule Precluding Redistribution Under Family
Maximum.--Section 203(i) of the Social Security Act (42
U.S.C. 403(i)) is repealed.
(b) Coordination Under Family Maximum of Reduction in
Beneficiary's Auxiliary Benefits With Suspension of Auxiliary
Benefits of Other Beneficiary Under Earnings Test.--Section
203(a)(4) of such Act (42 U.S.C. 403(a)(4)) is amended by
striking ``section 222(b). Whenever'' and inserting the
following: ``section 222(b). Notwithstanding the preceding
sentence, any reduction under this subsection in the case of
an individual who is entitled to a benefit under subsection
(b), (c), (d), (e), (f), (g), or (h) of section 202 for any
month on the basis of the same wages and self-employment
income as another person--
``(A) who also is entitled to a benefit under subsection
(b), (c), (d), (e), (f), (g), or (h) of section 202 for such
month,
``(B) who does not live in the same household as such
individual, and
``(C) whose benefit for such month is suspended (in whole
or in part) pursuant to subsection (h)(3) of this section,
shall be made before the suspension under subsection (h)(3).
Whenever''.
(c) Conforming Amendment Applying Earnings Reporting
Requirement Despite Suspension of Benefits.--The third
sentence of section 203(h)(1)(A) of such Act (42 U.S.C.
403(h)(1)(A)) is amended by striking ``Such report need not
be made'' and all that follows through ``The Secretary may
grant'' and inserting the following: ``Such report need not
be made for any taxable year--
``(i) beginning with or after the month in which such
individual attained age 70, or
``(ii) if benefit payments for all months (in such taxable
year) in which such individual is under age 70 have been
suspended under the provisions of the first sentence of
paragraph (3) of this subsection, unless--
``(I) such individual is entitled to benefits under
subsection (b), (c), (d), (e), (f), (g), or (h) of section
202,
``(II) such benefits are reduced under subsection (a) of
this section for any month in such taxable year, and
``(III) in any such month there is another person who also
is entitled to benefits under subsection (b), (c), (d), (e),
(f), (g), or (h) of section 202 on the basis of the same
wages and self-employment income and who does not live in the
same household as such individual.
The Secretary may grant''.
(d) Conforming Amendment Deleting Special Income Tax
Treatment of Benefits No Longer Required by Reason of
Repeal.--Section 86(d)(1) of the Internal Revenue Code of
1986 (relating to income tax on social security benefits) is
amended by striking the last sentence.
(e) Effective Dates.--
(1) The amendments made by subsections (a), (b), and (c)
shall apply with respect to benefits payable for months after
December 1995.
(2) The amendment made by subsection (d) shall apply with
respect to benefits received after December 31, 1995, in
taxable years ending after such date.
SEC. 211. MAXIMUM FAMILY BENEFITS IN GUARANTEE CASES.
(a) In General.--Section 203(a) of the Social Security Act
(42 U.S.C. 403(a)) is amended by adding at the end the
following new paragraph:
``(10)(A) Subject to subparagraphs (B) and (C)--
``(i) the total monthly benefits to which beneficiaries may
be entitled under sections 202 and 223 for a month on the
basis of the wages and self-employment income of an
individual whose primary insurance amount is computed under
section 215(a)(2)(B)(i) shall equal the total monthly
benefits which were authorized by this section with respect
to such individual's primary insurance amount for the last
month of his prior entitlement to disability insurance
benefits, increased for this purpose by the general benefit
increases and other increases under section 215(i) that would
have applied to such total monthly benefits had the
individual remained entitled to disability insurance benefits
until the month in which he became entitled to old-age
insurance benefits or reentitled to disability insurance
benefits or died, and
``(ii) the total monthly benefits to which beneficiaries
may be entitled under sections 202 and 223 for a month on the
basis of the wages and self-employment income of an
individual whose primary insurance amount is computed under
section 215(a)(2)(C) shall equal the total monthly benefits
which were authorized by this section with respect to such
individual's primary insurance amount for the last month of
his prior entitlement to disability insurance benefits.
``(B) In any case in which--
``(i) the total monthly benefits with respect to such
individual's primary insurance amount for the last month of
his prior entitlement to disability insurance benefits was
computed under paragraph (6), and
``(ii) the individual's primary insurance amount is
computed under subparagraph (B)(i) or (C) of section
215(a)(2) by reason of the individual's entitlement to old-
age insurance benefits or death,
the total monthly benefits shall equal the total monthly
benefits that would have been authorized with respect to the
primary insurance amount for the last month of his prior
entitlement to disability insurance benefits if such total
monthly benefits had been computed without regard to
paragraph (6).
``(C) This paragraph shall apply before the application of
paragraph (3)(A), and before the application of section
203(a)(1) of this Act as in effect in December 1978.''.
(b) Conforming Amendment.--Section 203(a)(8) of such Act
(42 U.S.C. 403(a)(8)) is amended by striking ``Subject to
paragraph (7),'' and inserting ``Subject to paragraph (7) and
except as otherwise provided in paragraph (10)(C),''.
(c) Effective Date.--The amendments made by this section
shall apply for the purpose of determining the total monthly
benefits to which beneficiaries may be entitled under
sections 202 and 223 of the Social Security Act based on the
wages and self-employment income of an individual who--
(1) becomes entitled to an old-age insurance benefit under
section 202(a) of such Act,
(2) becomes reentitled to a disability insurance benefit
under section 223 of such Act, or
(3) dies,
after January 1995.
SEC. 212. AUTHORIZATION FOR DISCLOSURE BY THE SECRETARY OF
HEALTH AND HUMAN SERVICES OF INFORMATION FOR
PURPOSES OF PUBLIC OR PRIVATE EPIDEMIOLOGICAL
AND SIMILAR RESEARCH.
(a) In General.--Section 1106 of the Social Security Act
(42 U.S.C. 1306) is amended--
(1) by redesignating subsections (d) and (e) as subsections
(e) and (f), respectively;
(2) in subsection (f) (as so redesignated), by striking
``subsection (d)'' and inserting ``subsection (e)''; and
(3) by inserting after subsection (c) the following new
subsection:
``(d) Notwithstanding any other provision of this section,
in any case in which--
``(1) information regarding whether an individual is shown
on the records of the Secretary as being alive or deceased is
requested from the Secretary for purposes of epidemiological
or similar research which the Secretary finds may reasonably
be expected to contribute to a national health interest, and
``(2) the requester agrees to reimburse the Secretary for
providing such information and to comply with limitations on
safeguarding and rerelease or redisclosure of such
information as may be specified by the Secretary,
the Secretary shall comply with such request, except to the
extent that compliance with such request would constitute a
violation of the terms of any contract entered into under
section 205(r).''.
(b) Availability of Information Returns Regarding Wages
Paid Employees.--Section 6103(l)(5) of the Internal Revenue
Code of 1986 (relating to disclosure of returns and return
information to the Department of Health and Human Services
for purposes other than tax administration) is amended--
(1) by striking ``for the purpose of'' and inserting ``for
the purpose of--'';
(2) by striking ``carrying out, in accordance with an
agreement'' and inserting the following:
``(A) carrying out, in accordance with an agreement'';
(3) by striking ``program.'' and inserting ``program; or'';
and
(4) by adding at the end the following new subparagraph:
``(B) providing information regarding the mortality status
of individuals for epidemiological and similar research in
accordance with section 1106(d) of the Social Security
Act.''.
(c) Effective Date.--The amendments made by this section
shall apply with respect to requests for information made
after the date of the enactment of this Act.
SEC. 213. MISUSE OF SYMBOLS, EMBLEMS, OR NAMES IN REFERENCE
TO SOCIAL SECURITY PROGRAMS AND AGENCIES.
(a) Prohibition of Unauthorized Reproduction, Reprinting,
or Distribution for Fee of Certain Official Publications.--
Section 1140(a) of the Social Security Act (42 U.S.C. 1320b-
10(a)) is amended--
(1) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively;
(2) by inserting ``(1)'' after ``(a)''; and
(3) by adding at the end the following new paragraph:
``(2) No person may, for a fee, reproduce, reprint, or
distribute any item consisting of a form, application, or
other publication of the Social Security Administration
unless such person has obtained specific, written
authorization for such activity in accordance with
regulations which the Secretary shall prescribe.''.
(b) Addition to Prohibited Words, Letters, Symbols, and
Emblems.--Paragraph (1) of section 1140(a) of such Act (as
redesignated by subsection (a)) is further amended--
(1) in subparagraph (A) (as redesignated), by striking
``Administration', the letters `SSA' or `HCFA','' and
inserting ``Administration', `Department of Health and Human
Services', `Health and Human Services', `Supplemental
Security Income Program', or `Medicaid', the letters `SSA',
`HCFA', `DHHS', `HHS', or `SSI',''; and
(2) in subparagraph (B) (as redesignated), by striking
``Social Security Administration'' each place it appears and
inserting ``Social Security Administration, Health Care
Financing Administration, or Department of Health and Human
Services'', and by striking ``or of the Health Care Financing
Administration''.
(c) Exemption for Use of Words, Letters, Symbols, and
Emblems of State and Local Government Agencies by Such
Agencies.--Paragraph (1) of section 1140(a) of such Act (as
redesignated by subsection (a)) is further amended by adding
at the end the following new sentence: ``The preceding
provisions of this subsection shall not apply with respect to
the use by any agency or instrumentality of a State or
political subdivision of a State of any words or letters
which identify an agency or instrumentality of such State or
of a political subdivision of such State or the use by any
such agency or instrumentality of any symbol or emblem of an
agency or instrumentality of such State or a political
subdivision of such State.''.
(d) Inclusion of Reasonableness Standard.--Section
1140(a)(1) of such Act (as amended by the preceding
provisions of this section) is further amended, in the matter
following subparagraph (B) (as redesignated), by striking
``convey'' and inserting ``convey, or in a manner which
reasonably could be interpreted or construed as conveying,''.
(e) Ineffectiveness of Disclaimers.--Subsection (a) of
section 1140 of such Act (as amended by the preceding
provisions of this section) is further amended by adding at
the end the following new paragraph:
``(3) Any determination of whether the use of one or more
words, letters, symbols, or emblems (or any combination or
variation thereof) in connection with an item described in
paragraph (1) or the reproduction, reprinting, or
distribution of an item described in paragraph (2) is a
violation of this subsection shall be made without regard to
any inclusion in such item (or any so reproduced, reprinted,
or distributed copy thereof) of a disclaimer of affiliation
with the United States Government or any particular agency or
instrumentality thereof.''.
(f) Violations With Respect to Individual Items.--Section
1140(b)(1) of such Act (42 U.S.C. 1320b-10(b)(1)) is amended
by adding at the end the following new sentence: ``In the
case of any items referred to in subsection (a)(1) consisting
of pieces of mail, each such piece of mail which contains one
or more words, letters, symbols, or emblems in violation of
subsection (a) shall represent a separate violation. In the
case of any item referred to in subsection (a)(2), the
reproduction, reprinting, or distribution of such item shall
be treated as a separate violation with respect to each copy
thereof so reproduced, reprinted, or distributed.''.
(g) Elimination of Cap on Aggregate Liability Amount.--
(1) Repeal.--Paragraph (2) of section 1140(b) of such Act
(42 U.S.C. 1320b-10(b)(2)) is repealed.
(2) Conforming amendments.--Section 1140(b) of such Act is
further amended--
(A) by striking ``(1) Subject to paragraph (2), the'' and
inserting ``The'';
(B) by redesignating subparagraphs (A) and (B) as
paragraphs (1) and (2), respectively; and
(C) in paragraph (1) (as redesignated), by striking
``subparagraph (B)'' and inserting ``paragraph (2)''.
(h) Removal of Formal Declination Requirement.--Section
1140(c)(1) of such Act (42 U.S.C. 1320b-10(c)(1)) is amended
by inserting ``and the first sentence of subsection (c)''
after ``and (i)''.
(i) Penalties Relating to Social Security Administration
Deposited in OASI Trust Fund.--Section 1140(c)(2) of such Act
(42 U.S.C. 1320b-10(c)(2)) is amended in the second sentence
by striking ``United States.'' and inserting ``United States,
except that, to the extent that such amounts are recovered
under this section as penalties imposed for misuse of words,
letters, symbols, or emblems relating to the Social Security
Administration, such amounts shall be deposited into the
Federal Old-Age and Survivor's Insurance Trust Fund.''.
(j) Enforcement.--Section 1140 of such Act (42 U.S.C.
1320b-10) is amended by adding at the end the following new
subsection:
``(d) The preceding provisions of this section shall be
enforced through the Office of Inspector General of the
Department of Health and Human Services.''.
(k) Annual Reports.--Section 1140 of such Act (as amended
by the preceding provisions of this section) is further
amended by adding at the end the following new subsection:
``(e) The Secretary shall include in the annual report
submitted pursuant to section 704 a report on the operation
of this section during the year covered by such annual
report. Such report shall specify--
``(1) the number of complaints of violations of this
section received by the Social Security Administration during
the year,
``(2) the number of cases in which a notice of violation of
this section was sent by the Social Security Administration
during the year requesting that an individual cease
activities in violation of this section,
``(3) the number of complaints of violations of this
section referred by the Social Security Administration to the
Inspector General in the Department of Health and Human
Services during the year,
``(4) the number of investigations of violations of this
section undertaken by the Inspector General during the year,
``(5) the number of cases in which a demand letter was sent
during the year assessing a civil money penalty under this
section,
``(6) the total amount of civil money penalties assessed
under this section during the year,
``(7) the number of requests for hearings filed during the
year pursuant to subsection (c)(1) of this section and
section 1128A(c)(2),
``(8) the disposition during such year of hearings filed
pursuant to sections 1140(c)(1) and 1128A(c)(2), and
``(9) the total amount of civil money penalties under this
section deposited into the Federal Old-Age and Survivors
Insurance Trust Fund during the year.''.
(l) Prohibition of Misuse of Department of the Treasury
Names, Symbols, Etc.--
(1) General rule.--Subchapter II of chapter 3 of title 31,
United States Code, is amended by adding at the end thereof
the following new section:
``Sec. 333. Prohibition of misuse of Department of the
Treasury names, symbols, etc.
``(a) General Rule.--No person may use, in connection with,
or as a part of, any advertisement, solicitation, business
activity, or product, whether alone or with other words,
letters, symbols, or emblems--
``(1) the words `Department of the Treasury', or the name
of any service, bureau, office, or other subdivision of the
Department of the Treasury,
``(2) the titles `Secretary of the Treasury' or `Treasurer
of the United States' or the title of any other officer or
employee of the Department of the Treasury,
``(3) the abbreviations or initials of any entity referred
to in paragraph (1),
``(4) the words `United States Savings Bond' or the name of
any other obligation issued by the Department of the
Treasury,
``(5) any symbol or emblem of an entity referred to in
paragraph (1) (including the design of any envelope or
stationary used by such an entity), and
``(6) any colorable imitation of any such words, titles,
abbreviations, initials, symbols, or emblems,
in a manner which could reasonably be interpreted or
construed as conveying the false impression that such
advertisement, solicitation, business activity, or product is
in any manner approved, endorsed, sponsored, or authorized
by, or associated with, the Department of the Treasury or any
entity referred to in paragraph (1) or any officer or
employee thereof.
``(b) Treatment of Disclaimers.--Any determination of
whether a person has violated the provisions of subsection
(a) shall be made without regard to any use of a disclaimer
of affiliation with the United States Government or any
particular agency or instrumentality thereof.
``(c) Civil Penalty.--
``(1) In general.--The Secretary of the Treasury may impose
a civil penalty on any person who violates the provisions of
subsection (a).
``(2) Amount of penalty.--The amount of the civil penalty
imposed by paragraph (1) shall not exceed $5,000 for each use
of any material in violation of subsection (a). If such use
is in a broadcast or telecast, the preceding sentence shall
be applied by substituting `$25,000' for `$5,000'.
``(3) Time limitations.--
``(A) Assessments.--The Secretary of the Treasury may
assess any civil penalty under paragraph (1) at any time
before the end of the 3-year period beginning on the date of
the violation with respect to which such penalty is imposed.
``(B) Civil action.--The Secretary of the Treasury may
commence a civil action to recover any penalty imposed under
this subsection at any time before the end of the 2-year
period beginning on the date on which such penalty was
assessed.
``(4) Coordination with subsection (d).--No penalty may be
assessed under this subsection with respect to any violation
after a criminal proceeding with respect to such violation
has been commenced under subsection (d).
``(d) Criminal Penalty.--
``(1) In general.--If any person knowingly violates
subsection (a), such person shall, upon conviction thereof,
be fined not more than $10,000 for each such use or
imprisoned not more than 1 year, or both. If such use is in a
broadcast or telecast, the preceding sentence shall be
applied by substituting `$50,000' for `$10,000'.
``(2) Time limitations.--No person may be prosecuted,
tried, or punished under paragraph (1) for any violation of
subsection (a) unless the indictment is found or the
information instituted during the 3-year period beginning on
the date of the violation.
``(3) Coordination with subsection (c).--No criminal
proceeding may be commenced under this subsection with
respect to any violation if a civil penalty has previously
been assessed under subsection (c) with respect to such
violation.''
(2) Clerical amendment.--The analysis for chapter 3 of
title 31, United States Code, is amended by adding after the
item relating to section 332 the following new item:
``333. Prohibition of misuse of Department of the Treasury names,
symbols, etc.''.
(3) Report.--Not later than May 1, 1996, the Secretary of
the Treasury shall submit a report to the Committee on Ways
and Means of the House of Representatives and the Committee
on Finance of the Senate on the implementation of the
amendments made by this section. Such report shall include
the number of cases in which the Secretary has notified
persons of violations of section 333 of title 31, United
States Code (as added by subsection (a)), the number of
prosecutions commenced under such section, and the total
amount of the penalties collected in such prosecutions.
(m) Effective Date.--The amendments made by this section
shall apply with respect to violations occurring after the
date of the enactment of this Act.
SEC. 214. INCREASED PENALTIES FOR UNAUTHORIZED DISCLOSURE OF
SOCIAL SECURITY INFORMATION.
(a) Unauthorized Disclosure.--Section 1106(a) of the Social
Security Act (42 U.S.C. 1306(a)) is amended--
(1) by striking ``misdemeanor'' and inserting ``felony'';
(2) by striking ``$1,000'' and inserting ``$10,000 for each
occurrence of a violation''; and
(3) by striking ``one year'' and inserting ``5 years''.
(b) Unauthorized Disclosure by Fraud.--Section 1107(b) of
such Act (42 U.S.C. 1307(b)) is amended--
(1) by inserting ``social security account number,'' after
``information as to the'';
(2) by striking ``misdemeanor'' and inserting ``felony'';
(3) by striking ``$1,000'' and inserting ``$10,000 for each
occurrence of a violation''; and
(4) by striking ``one year'' and inserting ``5 years''.
(c) Effective Date.--The amendments made by this section
shall apply to violations occurring on or after the date of
the enactment of this Act.
SEC. 215. INCREASE |
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