[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4277 Engrossed in House (EH)]
103d CONGRESS
2d Session
H. R. 4277
_______________________________________________________________________
AN ACT
To establish the Social Security Administration as an independent
agency and to make other improvements in the old-age, survivors, and
disability insurance program.
103d CONGRESS
2d Session
H. R. 4277
_______________________________________________________________________
AN ACT
To establish the Social Security Administration as an independent
agency and to make other improvements in the old-age, survivors, and
disability insurance program.
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 addiction 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 IN AUTHORIZED PERIOD FOR EXTENSION OF TIME TO FILE
ANNUAL EARNINGS REPORT.
(a) In General.--Section 203(h)(1)(A) of the Social Security Act
(42 U.S.C. 403(h)(1)(A)) is amended in the last sentence by striking
``three months'' and inserting ``four months''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply with respect to reports of earnings for taxable years ending on
or after December 31, 1994.
SEC. 216. EXTENSION OF DISABILITY INSURANCE PROGRAM DEMONSTRATION
PROJECT AUTHORITY.
(a) In General.--Section 505 of the Social Security Disability
Amendments of 1980 (Public Law 96-265), as amended by section 12101 of
the Consolidated Omnibus Budget Reconciliation Act of 1985 (Public Law
99-272), section 10103 of the Omnibus Budget Reconciliation Act of 1989
(Public Law 101-239), and section 5120 of the Omnibus Budget
Reconciliation Act of 1990 (Public Law 101-508) is further amended--
(1) in paragraph (3) of subsection (a), by striking ``June
10, 1993'' and inserting ``June 10, 1996'';
(2) in paragraph (4) of subsection (a), by striking
``1992'' and inserting ``1995''; and
(3) in subsection (c), by striking ``October 1, 1993'' and
inserting ``October 1, 1996''.
(b) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
SEC. 217. CROSS-MATCHING OF SOCIAL SECURITY ACCOUNT NUMBER INFORMATION
AND EMPLOYER IDENTIFICATION NUMBER INFORMATION MAINTAINED
BY THE DEPARTMENT OF AGRICULTURE.
(a) Social Security Account Number Information.--Clause (iii) of
section 205(c)(2)(C) of the Social Security Act (42 U.S.C.
405(c)(2)(C)) (as added by section 1735(a)(3) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (Public Law 101-624; 104 Stat.
3791)) is amended--
(1) by inserting ``(I)'' after ``(iii)''; and
(2) by striking ``The Secretary of Agriculture shall
restrict'' and all that follows and inserting the following:
``(II) The Secretary of Agriculture may share any information
contained in any list referred to in subclause (I) with any other
agency or instrumentality of the United States which otherwise has
access to social security account numbers in accordance with this
subsection or other applicable Federal law, except that the Secretary
of Agriculture may share such information only to the extent that such
Secretary determines such sharing would assist in verifying and
matching such information against information maintained by such other
agency or instrumentality. Any such information shared pursuant to this
subclause may be used by such other agency or instrumentality only for
the purpose of effective administration and enforcement of the Food
Stamp Act of 1977 or for the purpose of investigation of violations of
other Federal laws or enforcement of such laws.
``(III) The Secretary of Agriculture, and the head of any other
agency or instrumentality referred to in this subclause, shall
restrict, to the satisfaction of the Secretary of Health and Human
Services, access to social security account numbers obtained pursuant
to this clause only to officers and employees of the United States
whose duties or responsibilities require access for the purposes
described in subclause (II).
``(IV) The Secretary of Agriculture, and the head of any agency or
instrumentality with which information is shared pursuant to clause
(II), shall provide such other safeguards as the Secretary of Health
and Human Services determines to be necessary or appropriate to protect
the confidentiality of the social security account numbers.''.
(b) Employer Identification Number Information.--Subsection (f) of
section 6109 of the Internal Revenue Code of 1986 (as added by section
1735(c) of the Food, Agriculture, Conservation, and Trade Act of 1990
(Public Law 101-624; 104 Stat. 3792)) (relating to access to employer
identification numbers by Secretary of Agriculture for purposes of Food
Stamp Act of 1977) is amended--
(1) by striking paragraph (2) and inserting the following:
``(2) Sharing of information and safeguards.--
``(A) Sharing of information.--The Secretary of
Agriculture may share any information contained in any
list referred to in paragraph (1) with any other agency
or instrumentality of the United States which otherwise
has access to employer identification numbers in
accordance with this section or other applicable
Federal law, except that the Secretary of Agriculture
may share such information only to the extent that such
Secretary determines such sharing would assist in
verifying and matching such information against
information maintained by such other agency or
instrumentality. Any such information shared pursuant
to this subparagraph may be used by such other agency
or instrumentality only for the purpose of effective
administration and enforcement of the Food Stamp Act of
1977 or for the purpose of investigation of violations
of other Federal laws or enforcement of such laws.
``(B) Safeguards.--The Secretary of Agriculture,
and the head of any other agency or instrumentality
referred to in subparagraph (A), shall restrict, to the
satisfaction of the Secretary of the Treasury, access
to employer identification numbers obtained pursuant to
this subsection only to officers and employees of the
United States whose duties or responsibilities require
access for the purposes described in subparagraph (A).
The Secretary of Agriculture, and the head of any
agency or instrumentality with which information is
shared pursuant to subparagraph (A), shall provide such
other safeguards as the Secretary of the Treasury
determines to be necessary or appropriate to protect
the confidentiality of the employer identification
numbers.'';
(2) in paragraph (3), by striking ``by the Secretary of
Agriculture pursuant to this subsection'' and inserting
``pursuant to this subsection by the Secretary of Agriculture
or the head of any agency or instrumentality with which
information is shared pursuant to paragraph (2)'', and by
striking ``social security account numbers'' and inserting
``employer identification numbers''; and
(3) in paragraph (4), by striking ``by the Secretary of
Agriculture pursuant to this subsection'' and inserting
``pursuant to this subsection by the Secretary of Agriculture
or any agency or instrumentality with which information is
shared pursuant to paragraph (2)''.
SEC. 218. CERTAIN TRANSFERS TO RAILROAD RETIREMENT ACCOUNT MADE
PERMANENT.
Subsection (c)(1)(A) of section 224 of the Railroad Retirement
Solvency Act of 1983 (relating to section 72(r) revenue increase
transferred to certain railroad accounts) is amended by striking ``with
respect to benefits received before October 1, 1992''.
SEC. 219. AUTHORIZATION FOR USE OF SOCIAL SECURITY ACCOUNT NUMBERS BY
DEPARTMENT OF LABOR IN ADMINISTRATION OF FEDERAL WORKERS'
COMPENSATION LAWS.
Section 205(c)(2)(C) of the Social Security Act (42 U.S.C.
405(c)(2)(C)) is amended by adding at the end the following new clause:
``(ix) In the administration of the provisions of chapter 81 of
title 5, United States Code, and the Longshore and Harbor Workers'
Compensation Act (33 U.S.C. 901 et seq.), the Secretary of Labor may
require by regulation that any person filing a notice of injury or a
claim for benefits under such provisions provide as part of such notice
or claim such person's social security account number, subject to the
requirements of this clause. No officer or employee of the Department
of Labor shall have access to any such number for any purpose other
than the establishment of a system of records necessary for the
effective administration of such provisions. The Secretary of Labor
shall restrict, to the satisfaction of the Secretary of Health and
Human Services, access to social security account numbers obtained
pursuant to this clause to officers and employees of the United States
whose duties or responsibilities require access for the administration
or enforcement of such provisions. The Secretary of Labor shall provide
such other safeguards as the Secretary of Health and Human Services
determines to be necessary or appropriate to protect the
confidentiality of the social security account numbers.''.
SEC. 220. COVERAGE UNDER FICA OF FEDERAL EMPLOYEES TRANSFERRED
TEMPORARILY TO INTERNATIONAL ORGANIZATIONS.
(a) Treatment of Service in the Employ of International
Organizations by Certain Transferred Federal Employees.--
(1) In general.--Section 3121 of the Internal Revenue Code
of 1986 (relating to definitions) is amended by adding at the
end the following new subsection:
``(y) Service in the Employ of International Organizations by
Certain Transferred Federal Employees.--
``(1) In general.--For purposes of this chapter, service
performed in the employ of an international organization by an
individual pursuant to a transfer of such individual to such
international organization pursuant to section 3582 of title 5,
United States Code, shall constitute `employment' if--
``(A) immediately before such transfer, such
individual performed service with a Federal agency
which constituted `employment' under subsection (b) for
purposes of the taxes imposed by sections 3101(a) and
3111(a), and
``(B) such individual would be entitled, upon
separation from such international organization and
proper application, to reemployment with such Federal
agency under such section 3582.
``(2) Definitions.--For purposes of this subsection--
``(A) Federal agency.--The term `Federal agency'
means an agency, as defined in section 3581(1) of title
5, United States Code.
``(B) International organization.--The term
`international organization' has the meaning provided
such term by section 3581(3) of title 5, United States
Code.''
(2) Contributions by federal agency.--Section 3122 of such
Code (relating to Federal service) is amended by inserting
after the first sentence the following new sentence: ``In the
case of the taxes imposed by this chapter with respect to
service performed in the employ of an international
organization pursuant to a transfer to which the provisions of
section 3121(y) are applicable, the determination of the amount
of remuneration for such service, and the return and payment of
the taxes imposed by this chapter, shall be made by the head of
the Federal agency from which the transfer was made.''
(3) Collection of employee contributions.--Section 3102 of
such Code (relating to deduction of tax from wages) is amended
by adding at the end the following new subsection:
``(e) Special Rule for Certain Transferred Federal Employees.--In
the case of any payments of wages for service performed in the employ
of an international organization pursuant to a transfer to which the
provisions of section 3121(y) are applicable--
``(1) subsection (a) shall not apply,
``(2) the head of the Federal agency from which the
transfer was made shall separately include on the statement
required under section 6051--
``(A) the amount determined to be the amount of the
wages for such service, and
``(B) the amount of the tax imposed by section 3101
on such payments, and
``(3) the tax imposed by section 3101 on such payments
shall be paid by the employee.''
(4) Exclusion from treatment as trade or business.--
Paragraph (2)(C) of section 1402(c) of such Code (defining
trade or business) is amended by adding at the end the
following: ``except service which constitutes `employment'
under section 3121(y),''.
(5) Conforming amendment.--Paragraph (15) of section
3121(b) of such Code is amended by inserting ``, except service
which constitutes `employment' under subsection (y)'' after
``organization''.
(b) Amendments to the Social Security Act.--
(1) In general.--Section 210 of the Social Security Act (42
U.S.C. 410) is amended by adding at the end the following new
subsection:
``service in the employ of international organizations by certain
transferred federal employees
``(r)(1) For purposes of this title, service performed in the
employ of an international organization by an individual pursuant to a
transfer of such individual to such international organization pursuant
to section 3582 of title 5, United States Code, shall constitute
`employment' if--
``(A) immediately before such transfer, such individual
performed service with a Federal agency which constituted
`employment' as defined in subsection (a), and
``(B) such individual would be entitled, upon separation
from such international organization and proper application, to
reemployment with such Federal agency under such section 3582.
``(2) For purposes of this subsection:
``(A) The term `Federal agency' means an agency, as defined
in section 3581(1) of title 5, United States Code.
``(B) The term `international organization' has the meaning
provided such term by section 3581(3) of title 5, United States
Code.''
(2) Exclusion from treatment as trade or business.--Section
211(c)(2)(C) of such Act (42 U.S.C. 411(c)(2)(C)) is amended by
inserting before the semicolon the following ``, except service
which constitutes `employment' under section 210(r)''.
(3) Conforming amendment.--Section 210(a)(15) of such Act
(42 U.S.C. 410(a)(15)) is amended by inserting ``, except
service which constitutes `employment' under subsection (r)''
before the semicolon.
(c) Effective Date.--The amendments made by this section shall
apply with respect to service performed after the calendar quarter
following the calendar quarter in which the date of the enactment of
this Act occurs.
SEC. 221. EXTEND 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.
(a) Amendments to the Internal Revenue Code of 1986.--
(1) The following provisions of the Internal Revenue Code
of 1986 are each amended by striking ``(J), or (M)'' each place
it appears and inserting ``(J), (M), or (Q)'':
(A) Section 871(c).
(B) Section 1441(b).
(C) Section 3121(b)(19).
(D) Section 3231(e)(1).
(E) Section 3306(c)(19).
(2) Paragraph (3) of section 872(b) of such Code is amended
by striking ``(F) or (J)'' and inserting ``(F), (J), or (Q)''.
(3) Paragraph (5) of section 7701(b) of such Code is
amended by striking ``subparagraph (J)'' in subparagraphs
(C)(i) and (D)(i)(II) and inserting ``subparagraph (J) or
(Q)''.
(b) Amendment to Social Security Act.--Paragraph (19) of section
210(a) of the Social Security Act is amended by striking ``(J), or
(M)'' each place it appears and inserting ``(J), (M), or (Q)''.
(c) Effective Date.--The amendments made by this subsection shall
take effect with the calendar quarter following the date of the
enactment of this Act.
SEC. 222. STUDY OF RISING COSTS OF DISABILITY INSURANCE BENEFITS.
(a) In General.--As soon as practicable after the date of the
enactment of this Act, the Secretary of Health and Human Services shall
conduct a comprehensive study of the reasons for rising costs payable
from the Federal Disability Insurance Trust Fund.
(b) Matters to Be Included in Study.--In conducting the study under
this section, the Secretary shall--
(1) determine the relative importance of the following
factors in increasing the costs payable from the Trust Fund:
(A) increased numbers of applications for benefits;
(B) higher rates of benefit allowances; and
(C) decreased rates of benefit terminations; and
(2) identify, to the extent possible, underlying social,
economic, demographic, programmatic, and other trends
responsible for changes in disability benefit applications,
allowances, and terminations.
(c) Report.--Not later than December 31, 1994, the Secretary shall
transmit a report to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate setting
forth the results of the study conducted under this section, together
with any recommendations for legislative changes which the Secretary
determines appropriate.
SEC. 223. COMMISSION ON CHILDHOOD DISABILITY.
(a) Establishment of Commission.--The Secretary of Health and Human
Services (in this section referred to as the ``Secretary'') shall
appoint a Commission on the Evaluation of Disability in Children (in
this section referred to as the ``Commission'').
(b) Appointment of Members.--(1) The Secretary shall appoint not
less than 9 but not more than 15 members to the Commission, including--
(A) recognized experts in the field of medicine, whose work
involves--
(i) the evaluation and treatment of disability in
children,
(ii) the study of congenital, genetic, or perinatal
disorders in children, or
(iii) the measurement of developmental milestones
and developmental deficits in children; and
(B) recognized experts in the fields of--
(i) psychology,
(ii) education and rehabilitation,
(iii) law,
(iv) the administration of disability programs,
(v) social insurance (including health insurance),
and
(vi) other fields of expertise that the Secretary
determines to be appropriate.
(2) Members shall be appointed by January 1, 1995, without regard
to the provisions of title 5, United States Code, governing
appointments to competitive service.
(3) Members appointed under this subsection shall serve for a term
equivalent to the duration of the Commission.
(4) The Secretary shall designate a member of the Commission to
serve as Chair of the Commission for a term equivalent to the duration
of the Commission.
(c) Administrative Provisions.--(1) Service as a member of the
Commission by an individual who is not otherwise a Federal employee
shall not be considered service in an appointive or elective position
in the Federal Government for the purposes of title 5, United States
Code.
(2) Each member of the Commission who is not a full-time Federal
employee shall be paid compensation at a rate equal to the daily
equivalent of the rate of basic pay in effect for Level IV of the
Executive Schedule for each day (including travel time) the member
attends meetings or otherwise performs the duties of the Commission.
(3) While away from their homes or regular places of business on
the business of the Commission, each member who is not a full-time
Federal employee may be allowed travel expenses, including per diem in
lieu of subsistence, as authorized by section 5703 of title 5, United
States Code, for persons employed intermittently in the Government
service.
(d) Assistance to Commission.--The Commission may engage
individuals skilled in medical and other aspects of childhood
disability to provide such technical assistance as may be necessary to
carry out the functions of the Commission. The Secretary shall make
available to the Commission such secretarial, clerical, and other
assistance as the Commission may require to carry out the functions of
the Commission.
(e) Study by the Commission.--(1) The Commission shall conduct a
study, in consultation with the National Academy of Sciences, of the
effects of the definition of ``disability'' under title XVI of the
Social Security Act (42 U.S.C. 1382 et seq.) in effect on the date of
enactment of this Act, as such definition applies to determining
whether a child under the age of 18 is eligible to receive benefits
under such title, the appropriateness of such definition, and the
advantages and disadvantages of using any alternative definition of
disability in determining whether a child under age 18 is eligible to
receive benefits under such title.
(2) The study described in paragraph (1) shall include issues of--
(A) whether the need by families for assistance in meeting
high costs of medical care for children with serious physical
or mental impairments, whether or not they are eligible for
disability benefits under title XVI of the Social Security Act,
might appropriately be met through expansion of Federal health
assistance programs (including the program of medical
assistance under title XIX of such Act);
(B) the feasibility of providing benefits to children
through noncash means, including but not limited to vouchers,
debit cards, and electronic benefit transfer systems;
(C) the extent to which the Social Security Administration
can involve private organizations in an effort to increase the
provision of social services, education, and vocational
instruction with the aim of promoting independence and the
ability to engage in substantial gainful activity;
(D) the feasibility of providing retroactive supplemental
security income benefits pursuant to the decision in Sullivan
v. Zebley, 110 S. Ct. 2658 (1990), on a prorated basis or by
means of a packaged trust;
(E) methods to increase the extent to which benefits are
used in the effort to assist the child achieve independence and
engage in substantial gainful activity; and
(F) such other issues that the Secretary determines to be
appropriate.
(f) Report.--Not later than November 30, 1995, the Commission shall
prepare a report and submit such report to the Committee on Ways and
Means of the House of Representatives and the Committee on Finance of
the Senate which shall summarize the results of the study described in
subsection (e) and include any recommendations that the Commission
determines to be appropriate.
SEC. 224. DISREGARD DEEMED INCOME AND RESOURCES OF INELIGIBLE SPOUSE IN
DETERMINING CONTINUED ELIGIBILITY UNDER SECTION 1619(b).
(a) In General.--Section 1619(b)(2) of the Social Security Act (42
U.S.C. 1382h(b)(2)) is amended by adding at the end the following:
``(C)(i)(I) For purposes of paragraph (1), in determining the
earnings of an individual whose spouse is not an eligible individual,
there shall be disregarded the net income of the spouse to the extent
such net income does not exceed an amount equal to twice the threshold
amount determined for the individual.
``(II) As used in subclause (I), the term `threshold amount' means,
with respect to an individual--
``(aa) $85, plus twice the amount of benefits payable under
this title (including federally administered State
supplementary payments) to an individual who is living in his
or her own household and who has no other income, plus the
average amount expended per individual, under the State plan
approved under title XIX by the State in which the individual
resides, on individuals who are recipients of benefits under
this title by reason of disability; or
``(bb) if the gross earnings of the individual exceeds the
amount described in item (aa), the amount that would be
sufficient to allow the individual to provide for himself or
herself a reasonable equivalent of benefits and services
described in paragraph (1)(D).
``(ii) For purposes of paragraph (1)(A), in determining the
resources of an individual whose spouse is not an eligible individual,
there shall be disregarded the resources of the spouse to the extent
the amount of such resources does not exceed the community spouse
resource allowance (as defined in section 1924(f)(2)) of the State in
which the individual resides.''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on October 1, 1995.
SEC. 225. PLANS FOR ACHIEVING SELF-SUPPORT NOT DISAPPROVED WITHIN 60
DAYS TO BE DEEMED APPROVED.
(a) Amendments to Income Exclusion Rules.--Section 1612(b)(4) of
the Social Security Act (42 U.S.C. 1382a(b)(4)(A)) is amended in each
of subparagraphs (A) and (B) by inserting ``and, for purposes of this
clause, a completed plan for achieving self-support which is not
disapproved by the Board within 60 days after the date of submission
shall be deemed to be approved by the Board until subsequently
disapproved by the Board (with appropriate notification to the
individual),'' after ``plan,''.
(b) Amendment to Resource Exclusion Rule.--Section 1613(a)(4) of
such Act (42 U.S.C. 1382b(a)(4)) is amended by inserting ``, and, for
purposes of this paragraph, a completed plan for achieving self-support
which is not disapproved by the Board within 60 days after the date of
submission shall be deemed to be approved by the Board until 6 months
after subsequently disapproved by the Board (with appropriate
notification to the individual)'' after ``such plan''.
(c) Effective Date.--The amendments made by this section shall take
effect on January 1, 1995.
SEC. 226. TEMPORARY AUTHORITY TO APPROVE A LIMITED NUMBER OF PLANS FOR
ACHIEVING SELF-SUPPORT THAT INCLUDE HOUSING GOALS.
(a) In General.--During the 42-month period that begins on January
1, 1995, the Board may, under title XVI of the Social Security Act,
approve not more than 20 percent of the plans for achieving self-
support that include a housing goal.
(b) Report.--Within 12 months after the end of the 5-year period
that begins on January 1, 1995, the Board shall submit to the Congress
a report on the activities under subsection (a).
SEC. 227. REGULATIONS REGARDING COMPLETION OF PLANS FOR ACHIEVING SELF-
SUPPORT.
(a) In General.--Section 1633 of the Social Security Act (42 U.S.C.
1383b) is amended by adding at the end the following:
``(d) The Board shall establish by regulation time limits and other
criteria related to individuals' plans for achieving self-support, that
take into account the difficulty of achieving self-support based on the
needs of individuals and the goals of the plan.''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on January 1, 1995.
SEC. 228. TREATMENT OF CERTAIN GRANT, SCHOLARSHIP, OR FELLOWSHIP INCOME
AS EARNED INCOME FOR SSI PURPOSES.
(a) In General.--Section 1612(a)(1) of the Social Security Act (42
U.S.C. 1382a(a)(1)) is amended--
(1) by striking ``and'' at the end of subparagraph (D); and
(2) by adding at the end the following:
``(F) any grant, scholarship, or fellowship.''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply to eligibility and benefit determinations for any month that
begins after the 2nd month after the month in which this Act is
enacted.
SEC. 229. SSI ELIGIBILITY FOR STUDENTS TEMPORARILY ABROAD.
(a) In General.--Section 1611(f) of the Social Security Act (42
U.S.C. 1382(f)) is amended--
(1) by inserting ``(1)'' after ``(f)''; and
(2) by adding after and below the end the following:
``(2) The first sentence of paragraph (1) shall not apply to any
individual who--
``(A) was eligible to receive a benefit under this title
for the month immediately preceding the first month during all
of which the individual was outside the United States; and
``(B) demonstrates to the satisfaction of the Board that
the absence of the individual from the United States is--
``(i) temporary; and
``(ii) for the purpose of conducting studies as
part of an educational program that is designed to
prepare the individual for gainful employment, and is
sponsored by a school, college, or university in the
United States.''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on January 1, 1995.
SEC. 230. DISREGARD OF COST-OF-LIVING INCREASES FOR CONTINUED
ELIGIBILITY FOR WORK INCENTIVES.
(a) In General.--Section 1619(b)(1)(B) of the Social Security Act
(42 U.S.C. 1382h(b)(1)(B)) is amended by inserting ``and increases
pursuant to section 215(i) in the level of monthly insurance benefits
to which the individual is entitled under title II that occur while
such individual is considered to be receiving supplemental security
income benefits by reason of this subsection'' after ``earnings''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to eligibility determinations for months after December 1994.
SEC. 231. EXPANSION OF THE AUTHORITY OF THE SOCIAL SECURITY
ADMINISTRATION TO PREVENT, DETECT, AND TERMINATE
FRAUDULENT CLAIMS FOR SSI BENEFITS.
(a) Prevention of Fraud in the SSI Program by Translators of
Foreign Languages.--
(1) In general.--Section 1631(e) of the Social Security Act
(42 U.S.C. 1383(e)) is amended by inserting after paragraph (3)
the following:
``(4) A translation into English by a third party of a statement
made in a foreign language by an applicant for or recipient of benefits
under this title shall not be regarded as reliable unless the third
party, under penalty of perjury--
``(A) certifies that the translation is accurate; and
``(B) discloses the nature and scope of the relationship
between the third party and the applicant or recipient, as the
case may be.''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect on October 1, 1994.
(b) Civil Monetary Penalties, Assessments, and Exclusions for Title
XVI.--
(1) In general.--Title XI of the Social Security Act (42
U.S.C. 1301-1320b-14) is amended by inserting after section
1128B the following:
``SEC. 1129. CIVIL MONETARY PENALTIES AND ASSESSMENTS FOR TITLE XVI.
``(a) Any person (including an organization, agency, or other
entity) who makes, or causes to be made, a statement or representation
of a material fact for use in determining any initial or continuing
right to benefits or payments under title XVI that the person knows or
should know is false or misleading or knows or should know omits a
material fact shall be subject to, in addition to any other penalties
that may be prescribed by law, a civil money penalty of not more than
$5,000 for each such statement or representation. Such person also
shall be subject to an assessment, in lieu of damages sustained by the
United States because of such statement or representation, of not more
than twice the amount of benefits or payments paid as a result of such
a statement or representation. In addition, the Board may make a
determination in the same proceeding to exclude the person from
participation in the programs under title XVIII and to direct the
appropriate State agency to exclude the person from participation in
any State health care program.
``(b)(1) The Board may initiate a proceeding to determine whether
to impose a civil money penalty, assessment, or exclusion under
subsection (a) only as authorized by the Attorney General pursuant to
procedures agreed upon by the Board and the Attorney General. The Board
may not initiate an action under this section with respect to any
violation described in subsection (a) later than 6 years after the date
the violation was committed. The Board may initiate an action under
this section by serving notice of the action in any manner authorized
by Rule 4 of the Federal Rules of Civil Procedure.
``(2) The Board shall not make a determination adverse to any
person under this section until the person has been given written
notice and an opportunity for the determination to be made on the
record after a hearing at which the person is entitled to be
represented by counsel, to present witnesses, and to cross-examine
witnesses against the person.
``(3) In a proceeding under this section which--
``(A) is against a person who has been convicted (whether
upon a verdict after trial or upon a plea of guilty or nolo
contendere) of a Federal crime charging fraud or false
statements; and
``(B) involves the same transaction as in the criminal
action;
the person is estopped from denying the essential elements of the
criminal offense.
``(4) The official conducting a hearing under this section may
sanction a person, including any party or attorney, for failing to
comply with an order or procedure, failing to defend an action, or
other misconduct as would interfere with the speedy, orderly, or fair
conduct of the hearing. Such sanction shall reasonably relate to the
severity and nature of the failure or misconduct. Such sanction may
include--
``(A) in the case of refusal to provide or permit
discovery, drawing negative factual inference or treating such
refusal as an admission by deeming the matter, or certain
facts, to be established;
``(B) prohibiting a party from introducing certain evidence
or otherwise supporting a particular claim or defense;
``(C) striking pleadings, in whole or in part;
``(D) staying the proceedings;
``(E) dismissal of the action;
``(F) entering a default judgment;
``(G) ordering the party or attorney to pay attorneys' fees
and other costs caused by the failure or misconduct; and
``(H) refusing to consider any motion or other action which
is not filed in a timely manner.
``(c) In determining the amount or scope of any penalty,
assessment, or exclusion imposed pursuant to this section, the Board
shall take into account--
``(1) the nature of the statements and representations
referred to in subsection (a) and the circumstances under which
they occurred;
``(2) the degree of culpability, history of prior offenses,
and financial condition of the person committing the offense;
and
``(3) such other matters as justice may require.
``(d)(1) Any person adversely affected by a determination of the
Board under this section may obtain a review of such determination in
the United States Court of Appeals for the circuit in which the person
resides, or in which the statement or representation referred to in
subsection (a) was made, by filing in such court (within 60 days
following the date the person is notified of the Board's determination)
a written petition requesting that the determination be modified or set
aside. A copy of the petition shall be forthwith transmitted by the
clerk of the court to the Board, and thereupon the Board shall file in
the court the record in the proceeding as provided in section 2112 of
title 28, United States Code. Upon such filing, the court shall have
jurisdiction of the proceeding and of the question determined therein,
and shall have the power to make and enter upon the pleadings,
testimony, and proceedings set forth in such record a decree affirming,
modifying, remanding for further consideration, or setting aside, in
whole or in part, the determination of the Board and enforcing the same
to the extent that such order is affirmed or modified. No objection
that has not been urged before the Board shall be considered by the
court, unless the failure or neglect to urge such objection shall be
excused because of extraordinary circumstances.
``(2) The findings of the Board with respect to questions of fact,
if supported by substantial evidence on the record considered as a
whole, shall be conclusive in the review described in paragraph (1). If
any party shall apply to the court for leave to adduce additional
evidence and shall show to the satisfaction of the court that such
additional evidence is material and that there were reasonable grounds
for the failure to adduce such evidence in the hearing before the
Board, the court may order such additional evidence to be taken before
the Board and to be made a part of the record. The Board may modify its
findings as to the facts, or make new findings, by reason of additional
evidence so taken and filed, and the Board shall file with the court
such modified or new findings, which findings with respect to questions
of fact, if supported by substantial evidence on the record considered
as a whole shall be conclusive, and his recommendations, if any, for
the modification or setting aside of his original order.
``(3) Upon the filing of the record with the Board's original or
modified order, the jurisdiction of the court shall be exclusive and
its judgment and decree shall be final, except that the same shall be
subject to review by the Supreme Court of the United States, as
provided in section 1254 of title 28, United States Code.
``(e)(1) Civil money penalties and assessments imposed under this
section may be compromised by the Board and may be recovered--
``(A) in a civil action in the name of the United States
brought in United States district court for the district where
the statement or representation referred to in subsection (a)
was made, or where the person resides, as determined by the
Board;
``(B) by means of reduction in tax refunds to which the
person is entitled, based on notice to the Secretary of the
Treasury as permitted under section 3720A of title 31, United
States Code;
``(C) by decrease of any payment under title XVI to which
the person is entitled, notwithstanding section 207 of this
Act, as made applicable to this title by reason of section
1631(d)(1);
``(D) by authorities provided under the Debt Collection Act
of 1982, as amended, to the extent applicable to debts arising
under the Social Security Act;
``(E) by deduction of the amount of such penalty or
assessment, when finally determined, or the amount agreed upon
in compromise, from any sum then or later owing by the United
States to the person against whom the penalty or assessment has
been assessed; or
``(F) by any combination of the foregoing.
``(f) A determination by the Board to impose a penalty, assessment,
or exclusion under this section shall be final upon the expiration of
the 60-day period referred to in subsection (d). Matters that were
raised or that could have been raised in a hearing before the Board or
in an appeal pursuant to subsection (d) may not be raised as a defense
to a civil action by the United States to collect a penalty and
assessment imposed under this section.
``(g) Whenever the Board's determination to impose a penalty,
assessment, or exclusion under this section with respect to a medical
provider or physician becomes final, the provisions of section 1128A(h)
shall apply.
``(h) Whenever the Board has reason to believe that any person has
engaged, is engaging, or is about to engage in any activity which makes
the person subject to a civil monetary penalty under this section, the
Board may bring an action in an appropriate district court of the
United States (or, if applicable, a United States court of any
territory) to enjoin such activity, or to enjoin the person from
concealing, removing, encumbering, or disposing of assets which may be
required in order to pay a civil monetary penalty and assessment if any
such penalty were to be imposed or to seek other appropriate relief.
``(i)(1) The provisions of subsections (d) and (e) of section 205
shall apply with respect to this section to the same extent as they are
applicable with respect to title II. The Board may delegate the
authority granted by section 205(d) (as made applicable to this
section) to the Inspector General of the Department of Health and Human
Services for purposes of any investigation under this section.
``(2) The Board may delegate authority granted under this section
to the Inspector General of the Social Security Administration.
``(j) For purposes of this section, the term `State agency' shall
have the same meaning as in section 1128A(i)(1).
``(k) A principal is liable for penalties, assessments, and
exclusions under this section for the actions of the principal's agent
acting within the scope of the agency.''.
(2) Conforming amendments.--Section 1128 of such Act (42
U.S.C. 1320a-7) is amended--
(A) in subsection (b)(7), by striking ``or section
1128B'' and inserting ``, section 1128B, or section
1129'';
(B) in subsection (b)(8)(B)(ii), by inserting ``and
section 1129'' after ``section 1128A'';
(C) in subsection (c)(1), by striking ``or under
section 1128A'' and inserting ``, section 1128A, or
section 1129'';
(D) in subsection (c)(3)(A), by inserting ``or
section 1129'' after ``section 1128A'';
(E) in subsection (d)(1), by striking ``and section
1128A'' and inserting ``, section 1128A, and section
1129'';
(F) in subsection (d)(2)(A), by striking ``or
section 1128A'' and inserting ``, section 1128A, or
section 1129'';
(G) in subsection (e)(1), by striking ``or section
1128A'' and inserting ``, section 1128A, or section
1129'';
(H) in subsection (f)(3), by inserting ``, 1129,''
after ``sections 1128A'';
(I) in subsection (g)(1), by striking ``or section
1128A'' each place such term appears and inserting ``,
section 1128A, or section 1129'';
(J) in subsection (g)(2)(A), by inserting ``and
section 1129(a)'' after ``section 1128A(a)''; and
(K) in subsection (h), by striking ``1128A and
1128B'' and inserting ``1128A, 1128B, and 1129''.
(c) SSI Fraud Considered a Felony.--
(1) In general.--Section 1632(a) of the Social Security Act
(42 U.S.C. 1383a(a)) is amended by striking ``shall'' the 1st
place such term appears and all that follows and inserting
``shall be fined under title 18, United States Code, imprisoned
not more than 5 years, or both.''.
(2) Conforming amendment.--Section 1632(b) of such Act (42
U.S.C. 1383a(b)) is amended to read as follows:
``(b)(1) If a person or entity violates subsection (a) in the
person's or entity's role as, or in applying to become, a payee under
section 1631(a)(2) on behalf of another individual (other than the
person's eligible spouse), and the violation includes a willful misuse
of funds by the person or entity, the court may also require that full
or partial restitution of funds be made to such other individual.
``(2) Any person or entity convicted of a violation of subsection
(a) of this section or of section 208 may not be certified as a payee
under section 1631(a)(2).''.
(d) Authority to Redetermine Eligibility in Disability Cases if
Fraud is Involved, and to Terminate Benefits if There is Insufficient
Reliable Evidence of Disability.--
(1) In general.--Section 1631(e) of the Social Security Act
(42 U.S.C. 1383(e)) is amended by adding at the end the
following:
``(6)(A) The Board shall immediately redetermine the eligibility of
an individual for benefits under this title by reason of disability,
disregarding any unreliable evidence of disability, if there is reason
to believe that fraud was involved in the application of the individual
for such benefits, unless a United States attorney, or equivalent State
prosecutor, with jurisdiction over potential or actual related criminal
cases, certifies, in writing, that there is a substantial risk that
redetermining such eligibility would jeopardize the criminal
prosecution of any person who is a subject of the investigation from
which the information is derived.
``(B) If, after redetermining the eligibility of an individual for
benefits under this title by reason of disability, the Board determines
that there is insufficient reliable evidence of disability, the Board
may terminate such eligibility.''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect on October 1, 1994, and shall apply to
eligibility determinations made before, on, or after such date.
(e) Availability of Recipient Identifying Information From the
Inspector General, Social Security Administration.--
(1) In general.--Section 1631(e) of the Social Security Act
(42 U.S.C. 1383(e)), as amended by subsection (d) of this
section, is amended by adding at the end the following:
``(7) As soon as the Inspector General, Social Security
Administration, has reason to believe that fraud was involved in the
application of a recipient for benefits under this title, the Inspector
General shall make available to the Board information identifying the
recipient, unless a United States attorney, or equivalent State
prosecutor, with jurisdiction over potential or actual related criminal
cases, certifies, in writing, that there is a substantial risk that
making the information so available or redetermining the eligibility of
the recipient for such benefits would jeopardize the criminal
prosecution of any person who is a subject of the investigation from
which the information is derived.''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect on October 1, 1994.
(f) Authority to Use Available Preadmission Immigrant and Refugee
Medical Information.--
(1) In general.--Section 1631(e) of the Social Security Act
(42 U.S.C. 1383(e)), as amended by the preceding provisions of
this Act, is amended by adding at the end the following:
``(8) The Board shall request the Immigration and Naturalization
Service and the Centers for Disease Control to provide the Board with
whatever medical information either such entity has with respect to any
alien who has applied for benefits under this title to the extent that
the information is relevant to any determination relating to such
eligibility.''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect on October 1, 1994.
(g) Annual Reports on Reviews of SSI Cases.--The Board shall
annually submit to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate a report on
the extent to which the Board has exercised its authority to review
supplemental security income cases under title XVI of the Social
Security Act, and the extent to which the cases reviewed were those
that involved a high likelihood or probability of fraud.
SEC. 232. DISABILITY REVIEW REQUIRED FOR SSI RECIPIENTS WHO ARE 18
YEARS OF AGE.
(a) In General.--Section 1614(a)(3)(G) of the Social Security Act
(42 U.S.C. 1382c(a)(3)(G)) is amended--
(1) by inserting ``(i)'' after ``(G)''; and
(2) by adding after and below the end the following:
``(ii)(I) During the 1-year period that begins on the date a
recipient of benefits under this title by reason of disability attains
18 years of age, the applicable State agency or the Board (as may be
appropriate) shall redetermine the eligibility of the recipient for
such benefits by reason of disability, by applying the criteria used in
determining eligibility for such benefits of applicants who have
attained 18 years of age.
``(II) A review under subclause (I) of this clause shall be
considered a substitute for a review required under clause (i).''.
(b) Effective Date.--The amendments made by subsection (a) shall
apply to individuals who attain 18 years of age in or after the 9th
month after the month in which this Act is enacted.
SEC. 233. CONTINUING DISABILITY REVIEWS.
(a) In General.--Section 1614(a)(3)(G) of such Act (42 U.S.C.
1382c(a)(3)(G)) is amended by inserting ``221(i),'' after ``221(h),''.
(b) Effective Date.--The amendment made by subsection (A) shall
take effect on October 1, 1995.
SEC. 234. TECHNICAL AND CLERICAL AMENDMENTS.
(a) Amendments to Title II of the Social Security Act.--
(1) Section 201(a) of the Social Security Act (42 U.S.C.
401(a)) is amended, in the matter following clause (4), by
striking ``and and'' and inserting ``and''.
(2) Section 202(d)(8)(D)(ii) of such Act (42 U.S.C.
402(d)(8)(D)(ii)) is amended by adding a period at the end and
by adjusting the left hand margination thereof so as to align
with section 202(d)(8)(D)(i) of such Act.
(3) Section 202(q)(1)(A) of such Act (42 U.S.C.
402(q)(1)(A)) is amended by striking the dash at the end.
(4) Section 202(q)(9) of such Act (42 U.S.C. 402(q)(9)) is
amended, in the matter preceding subparagraph (A), by striking
``parargaph'' and inserting ``paragraph''.
(5) Section 202(t)(4)(D) of such Act (42 U.S.C.
402(t)(4)(D)) is amended by inserting ``if the'' before
``Secretary'' the second and third places it appears.
(6) Clauses (i) and (ii) of section 203(f)(5)(C) of such
Act (42 U.S.C. 403(f)(5)(C)) are amended by adjusting the left-
hand margination thereof so as to align with clauses (i) and
(ii) of section 203(f)(5)(B) of such Act.
(7) Paragraph (3)(A) and paragraph (3)(B) of section 205(b)
of such Act (42 U.S.C. 405(b)) are amended by adjusting the
left-hand margination thereof so as to align with the matter
following section 205(b)(2)(C) of such Act.
(8) Section 205(c)(2)(B)(iii) of such Act (42 U.S.C.
405(c)(2)(B)(iii)) is amended by striking ``non-public'' and
inserting ``nonpublic''.
(9) Section 205(c)(2)(C) of such Act (42 U.S.C.
405(c)(2)(C)) is amended--
(A) by striking the clause (vii) added by section
2201(c) of Public Law 101-624;
(B) by redesignating the clause (iii) added by
section 2201(b)(3) of Public Law 101-624, clause (iv),
clause (v), clause (vi), and the clause (vii) added by
section 1735(b) of Public Law 101-624 as clause (iv),
clause (v), clause (vi), clause (vii), and clause
(viii), respectively;
(C) in clause (v) (as redesignated), by striking
``subclause (I) of'', and by striking ``subclause (II)
of clause (i)'' and inserting ``clause (ii)''; and
(D) in clause (viii)(IV) (as redesignated), by
inserting ``a social security account number or''
before ``a request for''.
(10) The heading for section 205(j) of such Act (42 U.S.C.
405(j)) is amended to read as follows:
``Representative Payees''.
(11) The heading for section 205(s) of such Act (42 U.S.C.
405(s)) is amended to read as follows:
``Notice Requirements''.
(12) Section 208(c) of such Act (42 U.S.C. 408(c)) is
amended by striking ``subsection (g)'' and inserting
``subsection (a)(7)''.
(13) Section 210(a)(5)(B)(i)(V) of such Act (42 U.S.C.
410(a)(5)(B)(i)(V)) is amended by striking ``section
105(e)(2)'' and inserting ``section 104(e)(2)''.
(14) Section 211(a) of such Act (42 U.S.C. 411(a)) is
amended--
(A) in paragraph (13), by striking ``and'' at the
end; and
(B) in paragraph (14), by striking the period and
inserting ``; and''.
(15) Section 213(c) of such Act (42 U.S.C. 413(c)) is
amended by striking ``section'' the first place it appears and
inserting ``sections''.
(16) Section 215(a)(5)(B)(i) of such Act (42 U.S.C.
415(a)(5)(B)(i)) is amended by striking ``subsection'' the
second place it appears and inserting ``subsections''.
(17) Section 215(f)(7) of such Act (42 U.S.C. 415(f)(7)) is
amended by inserting a period after ``1990''.
(18) Subparagraph (F) of section 218(c)(6) of such Act (42
U.S.C. 418(c)(6)) is amended by adjusting the left-hand
margination thereof so as to align with section 218(c)(6)(E) of
such Act.
(19) Section 223(i) of such Act (42 U.S.C. 423(i)) is
amended by adding at the beginning the following heading:
``Limitation on Payments to Prisoners''.
(b) Related Amendments.--
(1) Section 603(b)(5)(A) of Public Law 101-649 (amending
section 202(n)(1) of the Social Security Act) (104 Stat. 5085)
is amended by inserting ``under'' before ``paragraph (1),'' and
by striking ``(17), or (18)'' and inserting ``(17), (18), or
(19)'', effective as if this paragraph were included in such
section 603(b)(5)(A).
(2) Section 10208(b)(1) of Public Law 101-239 (amending
section 230(b)(2)(A) of the Social Security Act) (103 Stat.
2477) is amended by striking ``230(b)(2)(A)'' and
``430(b)(2)(A)'' and inserting ``230(b)(2)'' and ``430(b)(2)'',
respectively, effective as if this paragraph were included in
such section 10208(b)(1).
(c) Conforming, Clerical Amendments Updating, Without Substantive
Change, References in Title II of the Social Security Act to the
Internal Revenue Code.--
(1)(A)(i) Section 201(g)(1) of such Act (42 U.S.C.
401(g)(1)) is amended--
(I) in subparagraph (A)(i), by striking ``and
subchapter E'' and all that follows through ``1954''
and inserting ``and chapters 2 and 21 of the Internal
Revenue Code of 1986'';
(II) in subparagraph (A)(ii), by striking ``1954''
and inserting ``1986'';
(III) in the matter in subparagraph (A) following
clause (ii), by striking ``subchapter E'' and all that
follows through ``1954.'' and inserting ``chapters 2
and 21 of the Internal Revenue Code of 1986.'', and by
striking ``1954 other'' and inserting ``1986 other'';
and
(IV) in subparagraph (B), by striking ``1954'' each
place it appears and inserting ``1986''.
(ii) The amendments made by clause (i) shall apply only
with respect to periods beginning on or after the date of the
enactment of this Act.
(B)(i) Section 201(g)(2) of such Act (42 U.S.C. 401(g)(2))
is amended by striking ``section 3101(a)'' and all that follows
through ``1950.'' and inserting ``section 3101(a) of the
Internal Revenue Code of 1986 which are subject to refund under
section 6413(c) of such Code with respect to wages (as defined
in section 3121 of such Code).'', and by striking ``wages
reported'' and all that follows through ``1954,'' and inserting
``wages reported to the Secretary of the Treasury or his
delegate pursuant to subtitle F of such Code,''.
(ii) The amendments made by clause (i) shall apply only
with respect to wages paid on or after January 1, 1995.
(C) Section 201(g)(4) of such Act (42 U.S.C. 401(g)(4)) is
amended--
(i) by striking ``The Board of Trustees shall
prescribe before January 1, 1981, the method'' and
inserting ``If at any time or times the Boards of
Trustees of such Trust Funds deem such action
advisable, they may modify the method prescribed by
such Boards'';
(ii) by striking ``1954'' and inserting ``1986'';
and
(iii) by striking the last sentence.
(2) Section 202(v) of such Act (42 U.S.C. 402(v)) is
amended--
(A) in paragraph (1), by striking ``1954'' and
inserting ``1986''; and
(B) in paragraph (3)(A), by inserting ``of the
Internal Revenue Code of 1986'' after ``3127''.
(3) Section 205(c)(5)(F)(i) of such Act (42 U.S.C.
405(c)(5)(F)(i)) is amended by inserting ``or the Internal
Revenue Code of 1986'' after ``1954''.
(4)(A) Section 209(a)(4)(A) of such Act (42 U.S.C.
409(a)(4)(A)) is amended by inserting ``or the Internal Revenue
Code of 1986'' after ``Internal Revenue Code of 1954''.
(B) Section 209(a) of such Act (42 U.S.C. 409(a)) is
amended--
(i) in subparagraphs (C) and (E) of paragraph (4),
(ii) in paragraph (5)(A),
(iii) in subparagraphs (A) and (B) of paragraph
(14),
(iv) in paragraph (15),
(v) in paragraph (16), and
(vi) in paragraph (17),
by striking ``1954'' each place it appears and inserting
``1986''.
(C) Subsections (b), (f), (g), (i)(1), and (j) of section
209 of such Act (42 U.S.C. 409) are amended by striking
``1954'' each place it appears and inserting ``1986''.
(5) Section 211(a)(15) of such Act (42 U.S.C. 411(a)(15))
is amended by inserting ``of the Internal Revenue Code of
1986'' after ``section 162(m)''.
(6) Title II of such Act is further amended--
(A) in subsections (f)(5)(B)(ii) and (k) of section
203 (42 U.S.C. 403),
(B) in section 205(c)(1)(D)(i) (42 U.S.C.
405(c)(1)(D)(i)),
(C) in the matter in section 210(a) (42 U.S.C.
410(a)) preceding paragraph (1) and in paragraphs (8),
(9), and (10) of section 210(a),
(D) in subsections (p)(4) and (q) of section 210
(42 U.S.C. 410),
(E) in the matter in section 211(a) (42 U.S.C.
411(a)) preceding paragraph (1) and in paragraphs (3),
(4), (6), (10), (11), and (12) and clauses (iii) and
(iv) of section 211(a),
(F) in the matter in section 211(c) (42 U.S.C.
411(c)) preceding paragraph (1), in paragraphs (3) and
(6) of section 211(c), and in the matter following
paragraph (6) of section 211(c),
(G) in subsections (d), (e), and (h)(1)(B) of
section 211 (42 U.S.C. 411),
(H) in section 216(j) (42 U.S.C. 416(j)),
(I) in section 218(e)(3) (42 U.S.C. 418(e)(3)),
(J) in section 229(b) (42 U.S.C. 429(b)),
(K) in section 230(c) (42 U.S.C. 430(c)), and
(L) in section 232 (42 U.S.C. 432),
by striking ``1954'' each place it appears and inserting
``1986''.
(d) Rules of Construction.--
(1) The preceding provisions of this section shall be
construed only as technical and clerical corrections and as
reflecting the original intent of the provisions amended
thereby.
(2) Any reference in title II of the Social Security Act to
the Internal Revenue Code of 1986 shall be construed to include
a reference to the Internal Revenue Code of 1954 to the extent
necessary to carry out the provisions of paragraph (1).
(e) Utilization of National Average Wage Index for Wage-Based
Adjustments.--
(1) Definition of national average wage index.--Section
209(k) of the Social Security Act (42 U.S.C. 409(k)) is
amended--
(A) by redesignating paragraph (2) as paragraph
(3);
(B) in paragraph (3) (as redesignated), by striking
``paragraph (1)'' and inserting ``this subsection'';
and
(C) by striking paragraph (1) and inserting the
following new paragraphs:
``(k)(1) For purposes of sections 203(f)(8)(B)(ii), 213(d)(2)(B),
215(a)(1)(B)(ii), 215(a)(1)(C)(ii), 215(a)(1)(D), 215(b)(3)(A)(ii),
215(i)(1)(E), 215(i)(2)(C)(ii), 224(f)(2)(B), and 230(b)(2) (and
230(b)(2) as in effect immediately prior to the enactment of the Social
Security Amendments of 1977), the term `national average wage index'
for any particular calendar year means, subject to regulations of the
Secretary under paragraph (2), the average of the total wages for such
particular calendar year.
``(2) The Secretary shall prescribe regulations under which the
national average wage index for any calendar year shall be computed--
``(A) on the basis of amounts reported to the Secretary of
the Treasury or his delegate for such year,
``(B) by disregarding the limitation on wages specified in
subsection (a)(1),
``(C) with respect to calendar years after 1990, by
incorporating deferred compensation amounts and factoring in
for such years the rate of change from year to year in such
amounts, in a manner consistent with the requirements of
section 10208 of the Omnibus Budget Reconciliation Act of 1989,
and
``(D) with respect to calendar years before 1978, in a
manner consistent with the manner in which the average of the
total wages for each of such calendar years was determined as
provided by applicable law as in effect for such years.''.
(2) Conforming amendments.--
(A) Section 213(d)(2)(B) of such Act (42 U.S.C.
413(d)(2)(B)) is amended by striking ``deemed average
total wages'' and inserting ``national average wage
index'', and by striking ``the average of the total
wages'' and all that follows and inserting ``the
national average wage index (as so defined) for
1976,''.
(B) Section 215(a)(1)(B)(ii) of such Act (42 U.S.C.
415(a)(1)(B)(ii)) is amended--
(i) in subclause (I), by striking ``deemed
average total wages'' and inserting ``national
average wage index''; and
(ii) in subclause (II), by striking ``the
average of the total wages'' and all that
follows and inserting ``the national average
wage index (as so defined) for 1977.''.
(C) Section 215(a)(1)(C)(ii) of such Act (42 U.S.C.
415(a)(1)(C)(ii)) is amended by striking ``deemed
average total wages'' and inserting ``national average
wage index''.
(D) Section 215(a)(1)(D) of such Act (42 U.S.C.
415(a)(1)(D)) is amended--
(i) by striking ``after 1978'';
(ii) by striking ``and the average of the
total wages (as described in subparagraph
(B)(ii)(I))'' and inserting ``and the national
average wage index (as defined in section
209(k)(1))''; and
(iii) by striking the last sentence.
(E) Section 215(b)(3)(A)(ii) of such Act (42 U.S.C.
415(b)(3)(A)(ii)) is amended by striking ``deemed
average total wages'' each place it appears and
inserting ``national average wage index''.
(F) Section 215(i)(1) of such Act (42 U.S.C.
415(i)(1)) is amended--
(i) in subparagraph (E), by striking ``SSA
average wage index'' and inserting ``national
average wage index (as defined in section
209(k)(1))''; and
(ii) by striking subparagraph (G) and
redesignating subparagraph (H) as subparagraph
(G).
(G) Section 215(i)(2)(C)(ii) of such Act (42 U.S.C.
415(i)(1)(C)(ii)) is amended to read as follows:
``(ii) The Secretary shall determine and promulgate the OASDI fund
ratio for the current calendar year on or before November 1 of the
current calendar year, based upon the most recent data then available.
The Secretary shall include a statement of the fund ratio and the
national average wage index (as defined in section 209(k)(1)) and a
statement of the effect such ratio and the level of such index may have
upon benefit increases under this subsection in any notification made
under clause (i) and any determination published under subparagraph
(D).''.
(H) Section 224(f)(2) of such Act (42 U.S.C.
424a(f)(2)) is amended--
(i) in subparagraph (A), by adding ``and''
at the end;
(ii) by striking subparagraph (C); and
(iii) by striking subparagraph (B) and
inserting the following:
``(B) the ratio of (i) the national average wage index (as
defined in section 209(k)(1)) for the calendar year before the
year in which such redetermination is made to (ii) the national
average wage index (as so defined) for the calendar year before
the year in which the reduction was first computed (but not
counting any reduction made in benefits for a previous period
of disability).''.
(f) Technical Corrections Related to OASDI in the Omnibus Budget
Reconciliation Act of 1990.--
(1) Amendments related to provisions in section 5103(b)
relating to disabled widows.--Section 223(f)(2) of the Social
Security Act (42 U.S.C. 423(f)(2)) is amended--
(A) in subparagraph (A), by striking ``(in a case
to which clause (ii)(II) does not apply)''; and
(B) by striking subparagraph (B)(ii) and inserting
the following:
``(ii) the individual is now able to engage
in substantial gainful activity; or''.
(2) Amendments related to provisions in section 5105(d)
relating to representative payees.--
(A) Title ii amendments.--Section 5105(d)(1)(A) of
the Omnibus Budget Reconciliation Act of 1990 (Public
Law 101-508) is amended--
(i) by striking ``Section 205(j)(5)'' and
inserting ``Section 205(j)(6)''; and
(ii) by redesignating the paragraph (5) as
amended thereby as paragraph (6).
(B) Title xvi amendments.--Section 1631(a)(2) of
the Social Security Act (42 U.S.C. 1383(a)(2)) is
amended--
(i) by redesignating subparagraphs (E) and
(F) as subparagraphs (F) and (G), respectively;
and
(ii) by inserting after subparagraph (D)
the following:
``(E) Restitution.--In cases where the negligent failure of the
Secretary to investigate or monitor a representative payee results in
misuse of benefits by the representative payee, the Secretary shall
make payment to the beneficiary or the beneficiary's representative
payee of an amount equal to such misused benefits. The Secretary shall
make a good faith effort to obtain restitution from the terminated
representative payee.''.
(3) Amendments related to provisions in section 5106
relating to coordination of rules under titles ii and xvi
governing fees for representatives of claimants with
entitlements under both titles.--
(A) Calculation of fee of claimant's representative
based on amount of past-due supplemental security
income benefits after application of windfall offset
provision.--Section 1631(d)(2)(A)(i) of the Social
Security Act (as amended by section 5106(a)(2) of the
Omnibus Budget Reconciliation Act of 1990) (42 U.S.C.
1383(d)(2)(A)(i)) is amended to read as follows:
``(i) by substituting, in subparagraphs (A)(ii)(I) and
(C)(i), the phrase `(as determined before any applicable
reduction under section 1631(g), and reduced by the amount of
any reduction in benefits under this title or title II made
pursuant to section 1127(a))' for the parenthetical phrase
contained therein; and''.
(B) Calculation of past-due benefits for purposes
of determining attorney fees in judicial proceedings.--
(i) In general.--Section 206(b)(1) of such
Act (42 U.S.C. 406(b)(1)) is amended--
(I) by inserting ``(A)'' after
``(b)(1)''; and
(II) by adding at the end the
following new subparagraph:
``(B) For purposes of this paragraph--
``(i) the term `past-due benefits' excludes any benefits
with respect to which payment has been continued pursuant to
subsection (g) or (h) of section 223, and
``(ii) amounts of past-due benefits shall be taken into
account to the extent provided under the rules applicable in
cases before the Secretary.''.
(ii) Protection from offsetting ssi
benefits.--The last sentence of section 1127(a)
of such Act (as added by section 5106(b) of the
Omnibus Budget Reconciliation Act of 1990) (42
U.S.C. 1320a-6(a)) is amended by striking
``section 206(a)(4)'' and inserting
``subsection (a)(4) or (b) of section 206''.
(4) Application of single dollar amount ceiling to
concurrent claims under titles ii and xvi.--
(A) In general.--Section 206(a)(2) of such Act (as
amended by section 5106(a)(1) of the Omnibus Budget
Reconciliation Act of 1990) (42 U.S.C. 406(a)(2)) is
amended--
(i) by redesignating subparagraph (C) as
subparagraph (D); and
(ii) by inserting after subparagraph (B)
the following new subparagraph:
``(C) In any case involving--
``(i) an agreement described in subparagraph (A) with any
person relating to both a claim of entitlement to past-due
benefits under this title and a claim of entitlement to past-
due benefits under title XVI, and
``(ii) a favorable determination made by the Secretary with
respect to both such claims,
the Secretary may approve such agreement only if the total fee or fees
specified in such agreement does not exceed, in the aggregate, the
dollar amount in effect under subparagraph (A)(ii)(II).''.
(B) Conforming amendment.--Section 206(a)(3)(A) of
such Act (as amended by section 5106(a)(1) of the
Omnibus Budget Reconciliation Act of 1990) (42 U.S.C.
406(a)(3)(A)) is amended by striking ``paragraph
(2)(C)'' and inserting ``paragraph (2)(D)''.
(5) Effective date.--Each amendment made by this section
shall take effect as if included in the provisions of the
Omnibus Budget Reconciliation Act of 1990 to which such
amendment relates.
(g) Elimination of Rounding Distortion in the Calculation of the
Old-Age, Survivors, and Disability Insurance Contribution and Benefit
Base and the Earnings Test Exempt Amounts.--
(1) Adjustment of oasdi contribution and benefit base.--
(A) In general.--Section 230(b) of the Social
Security Act (42 U.S.C. 430(b)) is amended by striking
paragraphs (1) and (2) and inserting the following:
``(1) $60,600, and
``(2) the ratio of (A) the national average wage index (as
defined in section 209(k)(1)) for the calendar year before the
calendar year in which the determination under subsection (a)
is made to (B) the national average wage index (as so defined)
for 1992,''.
(B) Conforming amendment relating to applicable
prior law.--Section 230(d) of such Act (42 U.S.C.
430(d)) is amended by striking ``(except that'' and all
that follows through the end and inserting ``(except
that, for purposes of subsection (b) of such section
230 as so in effect, the reference to the contribution
and benefit base in paragraph (1) of such subsection
(b) shall be deemed a reference to an amount equal to
$45,000, each reference in paragraph (2) of such
subsection (b) to the average of the wages of all
employees as reported to the Secretary of the Treasury
shall be deemed a reference to the national average
wage index (as defined in section 209(k)(1)), the
reference to a preceding calendar year in paragraph
(2)(A) of such subsection (b) shall be deemed a
reference to the calendar year before the calendar year
in which the determination under subsection (a) of such
section 230 is made, and the reference to a calendar
year in paragraph (2)(B) of such subsection (b) shall
be deemed a reference to 1992).''.
(C) Adjustment of contribution and benefit base
applicable in determining years of coverage for
purposes of special minimum primary insurance amount.--
Section 215(a)(1)(C)(ii) of such Act is amended by
striking ``(except that'' and all that follows through
the end and inserting ``(except that, for purposes of
subsection (b) of such section 230 as so in effect, the
reference to the contribution and benefit base in
paragraph (1) of such subsection (b) shall be deemed a
reference to an amount equal to $45,000, each reference
in paragraph (2) of such subsection (b) to the average
of the wages of all employees as reported to the
Secretary of the Treasury shall be deemed a reference
to the national average wage index (as defined in
section 209(k)(1)), the reference to a preceding
calendar year in paragraph (2)(A) of such subsection
(b) shall be deemed a reference to the calendar year
before the calendar year in which the determination
under subsection (a) of such section 230 is made, and
the reference to a calendar year in paragraph (2)(B) of
such subsection (b) shall be deemed a reference to
1992).''.
(2) Adjustment of earnings test exempt amount.--Section
203(f)(8)(B)(ii) of the Social Security Act (42 U.S.C.
403(f)(8)(B)(ii)) is amended to read as follows:
``(ii) the product of the corresponding exempt
amount which is in effect with respect to months in the
taxable year ending after 1993 and before 1995, and the
ratio of--
``(I) the national average wage index (as
defined in section 209(k)(1)) for the calendar
year before the calendar year in which the
determination under subparagraph (A) is made,
to
``(II) the national average wage index (as
so defined) for 1992,
with such product, if not a multiple of $10, being
rounded to the next higher multiple of $10 where such
product is a multiple of $5 but not of $10 and to the
nearest multiple of $10 in any other case.''.
(3) Effective dates.--
(A) The amendments made by subsection (a) shall be
effective with respect to the determination of the
contribution and benefit base for years after 1994.
(B) The amendment made by subsection (b) shall be
effective with respect to the determination of the
exempt amounts applicable to any taxable year ending
after 1994.
Passed the House of Representatives May 17, 1994.
Attest:
Clerk.
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