[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 623 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 623

   To establish the Social Security Administration as an independent 
  agency, which shall be headed by a Social Security Board, and which 
shall be responsible for the administration of the old-age, survivors, 
and disability insurance program under title II of the Social Security 
  Act and the supplemental security income program under title XVI of 
                               such Act.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 26, 1993

Mr. McCandless introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
   To establish the Social Security Administration as an independent 
  agency, which shall be headed by a Social Security Board, and which 
shall be responsible for the administration of the old-age, survivors, 
and disability insurance program under title II of the Social Security 
  Act and the supplemental security income program under title XVI of 
                               such Act.

    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.

    This Act may be cited as the ``Social Security Reorganization Act 
of 1993''.

                           TABLE OF CONTENTS

Sec. 1. Short title and table of contents.
Sec. 2. Declaration of purpose.
      TITLE I--ESTABLISHMENT OF THE SOCIAL SECURITY ADMINISTRATION

Sec. 101. Establishment of the Social Security Administration as a 
                            separate, independent agency; 
                            responsibilities of the agency.
Sec. 102. Social Security Board; Commissioner; Deputy Commissioner; 
                            Beneficiary Ombudsman; other officers.
Sec. 103. Personnel; budgetary matters; facilities and procurement; 
                            seal of office.
Sec. 104. Transfers to the new Social Security Administration.
      TITLE II--MISCELLANEOUS PROVISIONS AND CONFORMING AMENDMENTS

Sec. 201. Contributor and beneficiary bill of rights.
Sec. 202. Amendments to titles II and XVI of the Social Security Act.
Sec. 203. Other Amendments.
Sec. 204. Rules of construction.
           TITLE III--EFFECTIVE DATES AND TRANSITIONAL RULES

Sec. 301. Effective dates.
Sec. 302. Transitional rules.

SEC. 2. DECLARATION OF PURPOSE.

    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 a Commissioner of Social Security and 
        define the powers and duties of the Commissioner; and
            (5) to provide for delegating major management authorities 
        to the Board and the Commissioner.

      TITLE I--ESTABLISHMENT OF THE SOCIAL SECURITY ADMINISTRATION

SEC. 101. ESTABLISHMENT OF SOCIAL SECURITY ADMINISTRATION AS A 
              SEPARATE, INDEPENDENT AGENCY; RESPONSIBILITIES OF THE 
              AGENCY.

    Section 701 of the Social Security Act 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; COMMISSIONER; DEPUTY COMMISSIONER; 
              BENEFICIARY OMBUDSMAN; OTHER OFFICERS.

    (a) In General.--Section 702 of the Social Security Act is amended 
to read as follows:

         ``social security board; commissioner; 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, from among individuals who, by reason 
of their education, experience, and attainments, are exceptionally 
qualified to perform the duties of members of the Board.
    ``(B)(i) Except as provided in clauses (i) and (ii), 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 ending January 31, 
        1995,
            ``(II) one shall be appointed for a term ending January 31, 
        1997, and
            ``(III) one shall be appointed for a term ending January 
        31, 1999,
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, otherwise serve as an officer or employee of any government. If 
any member of the Board becomes an officer or employee of any 
government, such member may continue as a member of the Board for not 
longer than the 30-day period beginning on the date such member becomes 
such an officer or employee.
    ``(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 from time to time 
by the President to serve as Chairperson of the Board.
    ``(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) appoint a Commissioner of Social Security, as 
        described in subsection (b), to act as the chief operating 
        officer of the Administration responsible for administering 
        such programs,
            ``(C) constitute three of the members 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,
            ``(D) make annual budgetary recommendations relating to the 
        Administration and defend such recommendations before the 
        appropriate committees of each House of the Congress,
            ``(E) make recommendations to the Congress and the 
        President as to the most effective methods of providing 
        economic security through social insurance and as to 
        legislation and matters of administrative policy concerning 
        such programs,
            ``(F) provide the Congress and the President with the 
        ongoing actuarial and other analysis undertaken by the 
        Administration with respect to such programs and any other 
        information relating to such programs, and
            ``(G) conduct policy analysis and research relating to such 
        programs.
    ``(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.
    ``(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.

                   ``Commissioner of Social Security

    ``(b)(1) There shall be in the Administration a Commissioner of 
Social Security who shall be appointed by the Social Security Board.
    ``(2)(A) The Commissioner shall be appointed for a term of five 
years, except that the individual first appointed to the office of 
Commissioner shall be appointed for a term ending September 30, 1995. 
An individual appointed to a term of office as Commissioner 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 Commissioner 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 Commissioner for 
additional terms.
    ``(B) An individual may be removed from the office of Commissioner 
before completion of his or her term only for cause found by the Board.
    ``(3) The Commissioner shall be compensated at the rate provided 
for level II of the Executive Schedule.
    ``(4) The Commissioner 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) establish and maintain an efficient and effective 
        operational structure for the Administration,
            ``(C) devise and implement long-term plans to promote and 
        maintain the effective implementation of such programs,
            ``(D) make annual budgetary recommendations of the 
        Administration for the ongoing administrative costs of the 
        Administration and defend such recommendations before the Board 
        and before the appropriate Committees of each House of the 
        Congress,
            ``(E) advise the Board and the Congress of 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, Survivors, and Disability Insurance Trust Fund 
        and the Federal Disability Insurance Trust Fund, and
            ``(G) report in December of each year to the Board for 
        transmittal to the Congress concerning the administrative 
        endeavors and accomplishments of the Administration.
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 Commissioner pursuant to this section shall be 
considered a reference to the Commissioner.

                ``Deputy Commissioner of Social Security

    ``(c)(1) There shall be in the Office of the Commissioner a Deputy 
Commissioner, who shall be appointed by the Board. The Deputy 
Commissioner shall be appointed for a term coextensive with the term of 
the Commissioner and may be removed by the Board only for cause.
    ``(2) The Deputy Commissioner shall be compensated at the rate 
provided for level III of the Executive Schedule.
    ``(3) The Deputy Commissioner shall perform such duties and 
exercise such powers as the Commissioner shall from time to time assign 
or delegate. The Deputy Commissioner shall be Acting Commissioner of 
Social Security during the absence or disability of the Commissioner 
and, unless the Board designates another officer of the Government, in 
the event of a vacancy in the office of Commissioner.

                        ``Beneficiary Ombudsman

    ``(d)(1) The Board shall by regulation establish in the 
Administration an Office of the Beneficiary Ombudsman, to be headed by 
a Beneficiary Ombudsman appointed by the Board.
    ``(2) 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, 1991. 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.
    ``(3) The duties of the Beneficiary Ombudsman are as follows:
            ``(A) to represent 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 within the Administration's 
        decisionmaking process;
            ``(B) to review the Administration's policies and 
        procedures for possible adverse effects on such beneficiaries;
            ``(C) to recommend changes in policies which have caused 
        problems for such beneficiaries;
            ``(D) to help resolve the problems under such programs of 
        individual beneficiaries; and
            ``(E) to represent the views of beneficiaries in the design 
        of forms and the issuance of instructions.
    ``(4) 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.
    ``(5) The annual report of the Board under section 704 shall 
include a description of the activities of the Beneficiary Ombudsman.

                           ``General Counsel

    ``(e) 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.

                          ``Inspector General

    ``(f) 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.''.
    (b) Interim Authority of the Commissioner.--The President shall 
nominate for appointment the initial members of the Social Security 
Board not later than 180 days after the date of the enactment of this 
Act. In the event that, as of the effective date of the amendment made 
by this Act to section 702 of the Social Security Act, all members of 
the Social Security Board have not been appointed, until all members of 
the Board have been appointed, the officer serving on the date of the 
enactment of this Act 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 Commissioner of Social Security under such Act (as amended by this 
Act).

SEC. 103. PERSONNEL; BUDGETARY MATTERS; FACILITIES AND PROCUREMENT; 
              SEAL OF OFFICE.

    Section 703 of the Social Security Act 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 appoint, without regard to the provisions of 
title 5, United States Code, governing appointments in the competitive 
service, such technical or professional employees as the Board 
considers appropriate, and such employees may be paid without regard to 
the provisions of chapter 51 and subchapter III of chapter 53 of such 
title relating to classification and General Schedule pay rates.
    ``(3) The Board may procure the services of experts and consultants 
in accordance with the provisions of section 3109 of title 5, United 
States Code.
    ``(4) The Director of the Office of Personnel Management shall 
delegate to the Board, pursuant to section 1104 of title 5, United 
States Code, and subject to applicable limitations under such title 
relating to delegations under such section, the functions relating to--
            ``(A) recruitment and examination programs for entry level 
        employees, and
            ``(B) classification and standards development systems and 
        pay ranges for those job categories identified by the Board in 
        assuming such delegation.
The Director of the Office of Personnel Management shall provide any 
assistance requested by the Board in assuming such delegation.
    ``(5) Notwithstanding any requirements of section 3133 of title 5, 
United States Code, the Director of the Office of Personnel Management 
shall authorize for the Administration a total number of Senior 
Executive Service positions equal to 200 percent of the number of such 
positions 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 Reorganization Act of 1985, and the 
total number of such positions authorized for the Administration 
pursuant to such section 3133 shall not at any time be less than such 
number.
    ``(6) 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)(1) Appropriations requests for staffing and personnel of the 
Administration shall be based upon a comprehensive work force plan, 
which shall be established and revised from time to time by the Board. 
The entire amount of appropriations provided for the administrative 
costs of the Administration shall be apportioned in the time period 
provided in title 31, United States Code, for apportionment and shall 
be apportioned for the entire period of availability without 
restriction or deduction by the apportioning officer or employee of the 
Office of Management and Budget or any other entity within the 
executive branch of the Federal Government, except as otherwise 
provided in this subsection.
    ``(2) The report submitted pursuant to section 704 shall include a 
section reflecting the use of budget authority provided to the 
Administration by quarters.
    ``(3)(A) Authority of the Administration for automated data 
processing procurement and facilities construction shall be provided in 
the form of contract authority covering the total costs of such 
acquisitions, to be available until expended.
    ``(B) Amounts necessary for the liquidation of contract authority 
provided pursuant to this paragraph are hereby made available from the 
Federal Old-Age and Survivors Insurance Trust Fund and the Federal 
Disability Insurance Trust Fund to the extent that the Board, with the 
concurrence of the Secretary of the Treasury, determines that such 
amounts are not necessary to meet the current obligations for benefit 
payments from the Trust Funds.
    ``(C) Funds appropriated for the Administration to be available on 
a contingency basis shall be apportioned only upon the occurrence of 
the stipulated contingency, as determined by the Board and reported to 
each House of the Congress.

     ``Mandatory Delegations from Administrator of General Services

    ``(c)(1) The Board shall have--
            ``(A) all authorities permitted to be delegated under the 
        provisions of Federal law codified under title 40 of the United 
        States Code, relating to the acquisition, operation, and 
        maintenance of the facilities needed for the administration of 
        programs for which the Board is given responsibility under this 
        Act,
            ``(B) all authorities permitted to be delegated under 
        section 111 of the Federal Property and Administrative Services 
        Act of 1949 (40 U.S.C. 759), relating to the lease, purchase, 
        or maintenance of automated data processing equipment, and
            ``(C) the authority to contract for any automated data 
        processing equipment or services which the Board considers 
        necessary for the efficient and effective operation of such 
        programs.
    ``(2) The Administrator of the General Services Administration 
shall provide any assistance requested by the Board in assuming the 
delegations required under paragraph (1).''.

                            ``Seal of Office

    ``(d) 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 employed in connection with the functions 
        transferred by this Act and the amendments made thereby, and
            (B) 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.
    (c) Abolishment of Office of Commissioner in the Department of 
Health and Human Services.--Effective upon the appointment 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.

      TITLE II--MISCELLANEOUS PROVISIONS AND CONFORMING AMENDMENTS

SEC. 201. CONTRIBUTOR AND BENEFICIARY BILL OF RIGHTS.

    Title VII of the Social Security Act is further amended by adding 
at the end thereof the following new section:

              ``contributor and beneficiary bill of rights

                 ``Principles for Implementation of Act

    ``Sec. 711. (a) The provisions of this Act should be implemented 
consistent with the following principles:
            ``(1) All persons should be treated fairly and equitably by 
        the Social Security Board and the Secretary with proper regard 
        and protection for their rights under this Act, their 
        constitutional rights, and their privacy.
            ``(2) The Social Security Board and the Secretary should 
        not discriminate against persons on account of their age, sex, 
        race, creed, color, handicap, national origin, or economic 
        condition.
            ``(3) The Board and the Secretary should each maintain 
        prompt, professional, and effective service which is accessible 
        and responsive to the communities and persons which they serve.

                      ``Enforcement of Principles

    ``(b) In carrying out their responsibilities under this Act, the 
Social Security Board and the Secretary, pursuant to authority 
otherwise available, shall take any action, including the issuance of 
rules, regulations, or directives, which is consistent with the 
provisions of this Act and which the Social Security Board or the 
Secretary (as the case may be) determines is necessary to ensure that 
the administration of this Act is based on and embodies the principles 
set forth in subsection (a) and that such principles are publicly 
displayed in each office of the Social Security Administration.''.

SEC. 202. AMENDMENTS TO TITLES II AND XVI OF THE SOCIAL SECURITY ACT.

    (a) Title II (other than section 201, section 231(c), section 226, 
and section 226A) and title XVI of the Social Security Act are each 
amended--
            (1) by striking out, wherever it appears therein, 
        ``Secretary of Health and Human Services'' and inserting in 
        lieu thereof ``Social Security Board'';
            (2) by striking out, wherever it appears therein, 
        ``Department of Health and Human Services'' and inserting in 
        lieu thereof ``Social Security Administration'';
            (3) by striking out, 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 in lieu thereof ``Administration''; and
            (4) by striking out, 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 lieu thereof (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''.
    (b)(1) Section 201(a)(3) of such Act is amended by striking out 
``Secretary of Health and Human Services'' and inserting in lieu 
thereof ``Social Security Board''.
    (2) Section 201(c) of such Act is amended--
            (A) in the first sentence, by striking out ``shall be 
        composed of'' and all that follows down through ``ex officio'' 
        and inserting in lieu thereof the following: ``shall be 
        composed of the members of the Social Security Board, the 
        Secretary of the Treasury, and the Secretary of Health and 
        Human Services, all ex officio''; and
            (B) 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.''.
    (3) Section 201(g)(1)(A) of such Act is amended--
            (A) in clause (i), by striking out ``by him and the 
        Secretary of Health and Human Services'' and inserting in lieu 
        thereof ``by him, the Social Security Board, and the Secretary 
        of Health and Human Services'', and by striking out ``by the 
        Department of Health and Human Services and the Treasury 
        Department'' and inserting in lieu thereof ``by the Social 
        Security Administration, the Department of Health and Human 
        Services, and the Department of the Treasury'';
            (B) in clause (ii), by striking out ``method prescribed by 
        the Board of Trustees under paragraph (4)'' and inserting in 
        lieu thereof ``applicable method prescribed under paragraph 
        (4)'', by striking out ``the Secretary of Health and Human 
        Services'' and inserting in lieu thereof ``the Social Security 
        Board and the Secretary of Health and Human Services'', and by 
        striking out ``the Department of Health and Human Services'' 
        and inserting in lieu thereof ``the Social Security 
        Administration and the Department of Health and Human 
        Services''; and
            (C) by striking out the last sentence and inserting in lieu 
        thereof the following: ``There are hereby authorized to be made 
        available for expenditure, out of any or all of the Trust 
        Funds, such amounts as the Congress may deem appropriate to pay 
        the costs of the part of the administration of this title and 
        title XVI for which the Social Security Board is responsible, 
        the costs of title XVIII for which the Secretary of Health and 
        Human Services is responsible, and the costs of carrying out 
        the functions of the Social Security Administration, specified 
        in section 232, which relate to the administration of 
        provisions of the Internal Revenue Code of 1954 other than 
        those referred to in clause (i) of the first sentence of this 
        subparagraph.''.
    (4) Section 201(g)(1) of such Act is further amended by striking 
out subparagraph (B) and inserting in lieu thereof the following new 
subparagraphs:
    ``(B) After the close of each fiscal year--
            ``(i) the Social Security Board shall determine (I) the 
        portion of the costs, incurred during such fiscal year, of 
        administration of this title and title XVI and of carrying out 
        the functions of the Social Security Administration, specified 
        in section 232, which relate to the administration of 
        provisions of the Internal Revenue Code of 1954 (other than 
        those referred to in clause (i) of the first sentence of 
        subparagraph (A)), which should have been borne by the general 
        fund in the Treasury, (II) the portion of such costs which 
        should have been borne by the Federal Old-Age and Survivors 
        Insurance Trust Fund, and (III) the portion of such costs which 
        should have been borne by the Federal Disability Insurance 
        Trust Fund, and
            ``(ii) the Secretary of Health and Human Services shall 
        determine (I) the portion of the costs, incurred during such 
        fiscal year, of administration of title XVIII which should have 
        been borne by the general fund in the Treasury, (II) the 
        portion of such costs which should have been borne by the 
        Federal Hospital Insurance Trust Fund, and (III) the portion of 
        such costs which should have been borne by the Federal 
        Supplementary Medical Insurance Trust Fund,
except that the determination of the amounts to be borne by the general 
fund in the Treasury with respect to expenditures incurred in carrying 
out such functions specified in section 232 shall be made pursuant to 
the applicable method prescribed under paragraph (4) of this 
subsection.
    ``(C) After the determinations under subparagraph (B) have been 
made for any fiscal year, the Social Security Board and the Secretary 
of Health and Human Services shall each certify to the Managing Trustee 
the amounts which should be transferred from each of the Trust Funds to 
the general fund in the Treasury and from the general fund in the 
Treasury to each of the Trust Funds, in order to ensure that each of 
the Trust Funds and the general fund in the Treasury have borne their 
proper share of the costs, incurred during such fiscal year, for (i) 
the part of the administration of this title and title XVI for which 
the Social Security Board is responsible, (ii) the part of the 
administration of this title and title XVIII for which the Secretary of 
Health and Human Services is responsible, and (iii) carrying out the 
functions of the Social Security Administration, specified in section 
232, which relate to the administration of provisions of the Internal 
Revenue Code of 1954 (other than those referred to in clause (i) of the 
first sentence of subparagraph (A)). The Managing Trustee shall 
transfer any such amounts in accordance with any certification so 
made.''.
    (5) Section 201(g)(2) of such Act is amended, in the second 
sentence, by striking out ``established and maintained by the Secretary 
of Health and Human Services'' and inserting in lieu thereof 
``maintained by the Social Security Board'', and by striking out 
``Secretary shall furnish'' and inserting in lieu thereof ``Social 
Security Board shall furnish''.
    (6) Section 201(g)(4) of such Act is amended to read as follows:
    ``(4) The Social Security Board shall utilize the method prescribed 
pursuant to this paragraph, as of immediately before the date of the 
enactment of the Social Security Reorganization Act of 1985, for 
determining the costs which should be borne by the general fund in the 
Treasury of carrying out the functions of the Board, specified in 
section 232, which relate to the administration of provisions of the 
Internal Revenue Code of 1954 (other than those referred to in clause 
(i) of the first sentence of paragraph (1)(A)). If at any time or times 
thereafter the Board considers such action advisable, it may modify the 
method of determining such costs.''.
    (7) Section 201(i)(1) of such Act is amended to read as follows:
    ``(i)(1) The Managing Trustee may accept on behalf of the United 
States money gifts and bequests made unconditionally to the Federal 
Old-Age and Survivors Insurance Trust Fund, the Federal Disability 
Insurance Trust Fund, the Federal Hospital Insurance Trust Fund, or the 
Federal Supplementary Medical Insurance Trust Fund or to the Social 
Security Administration, the Department of Health and Human Services, 
or any part or officer thereof, for the benefit of any of such Funds or 
any activity financed through such Funds.''.
    (8) Subsections (j) and (k) of section 201 of such Act are each 
amended by striking out ``Secretary'' each place it appears and 
inserting in lieu thereof ``Social Security Board''.
    (9) Section 201(l)(3)(B)(iii)(II) of such Act is amended by 
striking out ``Secretary'' and inserting in lieu thereof ``Social 
Security Board''.
    (10) Section 201(m)(3) of such Act is amended by striking out 
``Secretary of Health and Human Services'' and inserting in lieu 
thereof ``Social Security Board''.
    (c) Section 231(c) of such Act is amended by striking out 
``Secretary determines'' and inserting in lieu thereof ``Social 
Security Board and the Secretary jointly determine''.

SEC. 203. OTHER AMENDMENTS.

    (a) Section 411 of the Social Security Act is amended--
            (1) in subsection (a), by striking out ``Secretary'' and 
        inserting in lieu thereof ``Social Security Board, at the 
        request of the Secretary,''; and
            (2) in subsection (b), by striking out ``Secretary'' each 
        place it appears and inserting in lieu thereof ``Social 
        Security Board''.
    (b)(1) Section 704 of such Act is amended to read as follows:

                               ``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) Section 709(b)(2) of such Act is amended by striking out ``(as 
estimated by the Secretary)'' and inserting in lieu thereof ``, as 
estimated by the Social Security Board or the Secretary (whichever 
administers the program involved),''.
    (3) Title VII of such Act is further amended by adding at the end 
thereof the following new section:

                         ``duties of secretary

    ``Sec. 712. 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.''.
    (c)(1) Section 1101(a) of such Act is amended by adding at the end 
thereof the following new paragraph:
            ``(10) The term `Administration' means the Social Security 
        Administration.''.
    (2) Section 1106(a) of such Act is amended--
            (A) by inserting ``(1)'' after ``(a)'';
            (B) by striking out ``Department of Health and Human 
        Services'' and inserting in lieu thereof ``applicable agency'';
            (C) by striking out ``Secretary'' and inserting in lieu 
        thereof ``head of the applicable agency''; and
            (D) by adding at the end thereof the following new 
        paragraph:
    ``(2) For purposes of this subsection and subsection (b), the term 
`applicable agency' means--
            ``(A) the Social Security Administration, with respect to 
        matter transmitted to or obtained by such Administration or 
        matter disclosed by such Administration, or
            ``(B) the Department of Health and Human Services, with 
        respect to matter transmitted to or obtained by such Department 
        or matter disclosed by such Department.''.
    (3) Section 1106(b) of such Act is amended--
            (A) by striking out ``Secretary'' and inserting in lieu 
        thereof ``head of the applicable agency''; and
            (B) by striking out ``Department of Health and Human 
        Services'' and inserting in lieu thereof ``applicable agency''.
    (4) Section 1106(c) of such Act is amended--
            (A) by striking out ``the Secretary'' the first place it 
        appears and inserting in lieu thereof ``the Social Security 
        Board or the Secretary''; and
            (B) by striking out ``the Secretary'' each subsequent place 
        it appears and inserting in lieu thereof ``such Board or 
        Secretary''.
    (5) Section 1107(b) of such Act is amended by striking out ``the 
Secretary of Health and Human Services'' and inserting in lieu thereof 
``the Social Security Board or the Secretary''.
    (6) Section 1110 of such Act is amended--
            (A) by striking out ``Secretary'' each place it appears and 
        inserting in lieu thereof ``Social Security Board''; and
            (B) by striking out ``he'', ``his'', ``him'', and 
        ``himself'' each place they appear (except in subsection 
        (b)(2)(A)) and inserting in lieu thereof ``the Board'', ``the 
        Board's'', ``the Board'', and ``itself'', respectively.
    (7) Section 1127 of such Act is amended by striking out 
``Secretary'' and inserting in lieu thereof ``Social Security Board''.
    (8) Section 1128(e) of such Act is amended by inserting after 
``section 205(g)'' the following: ``, except that, in so applying such 
sections, any reference therein to the Social Security Board shall be 
considered a reference to the Secretary''.
    (9) Section 1131 of such Act is amended--
            (A) by striking out ``Secretary'' each place it appears and 
        inserting in lieu thereof ``Social Security Board'';
            (B) in subsection (a)(1)(A), by adding ``or'' at the end 
        thereof;
            (C) in subsection (a)(1)(B), by striking out ``or'' at the 
        end thereof;
            (D) by striking out subsection (a)(1)(C);
            (E) by redesignating subsection (a)(2) as subsection 
        (a)(3);
            (F) by inserting after subsection (a)(1) the following new 
        paragraph:
            ``(2) the Secretary makes a finding of fact and a decision 
        as to the entitlement under section 226 of any individual to 
        hospital insurance benefits under part A of title XVIII, or'';
        and
            (G) by striking out ``he'' in the matter in subsection (a) 
        following paragraph (3) (as so redesignated) and inserting in 
        lieu thereof ``the Social Security Board''.
    (10) Section 1155 of such Act is amended by striking out ``(to the 
same extent as is provided in section 205(b))'' and inserting in lieu 
thereof ``(to the same extent as beneficiaries under title II are 
entitled to a hearing by the Social Security Board under section 
205(b))''.
    (d)(1) Subsections (a) and (f) of section 1817 of such Act are 
amended by striking out ``Secretary of Health and Human Services'' each 
place it appears and inserting in lieu thereof ``Social Security 
Board''.
    (2) Section 1840(a) of such Act is amended--
            (A) in paragraph (1), by striking out ``Secretary'' and 
        inserting in lieu thereof ``Social Security Board'', and by 
        adding at the end thereof the following new sentence: ``Such 
        regulations shall be prescribed only after consultation with 
        the Secretary.''; and
            (B) in paragraph (2), by striking out ``Secretary of Health 
        and Human Services'' and inserting in lieu thereof ``Social 
        Security Board''.
    (3) Section 1872 of such Act is amended by inserting after ``title 
II'' the following: ``, except that, in applying such provisions with 
respect to this title, any reference therein to the Social Security 
Board shall be considered a reference to the Secretary''.
    (4) Sections 1862(d)(3), 1869(b)(1), and 1869(c) of such Act and 
the last sentence of section 1876(c)(5)(B) of such Act are amended by 
inserting after ``section 205(g)'' the following: ``, except that, in 
so applying such sections, any reference therein to the Social Security 
Board shall be considered a reference to the Secretary''.
    (e) Section 1910(c)(2) of such Act is amended, in the first 
sentence, by inserting after ``section 205(g)'' the following: ``, 
except that, in so applying such sections, any reference therein to the 
Social Security Board shall be considered a reference to the 
Secretary''.
    (f) Title 5, United States Code, is amended--
            (1) by adding at the end of section 5313 the following new 
        items:
            ``Members, Social Security Board (3).
            ``Commissioner of Social Security.'';
            (2) by adding at the end of section 5314 the following new 
        item:
            ``Deputy Commissioner of Social Security.'';
            (3) by adding at the end of section 5315 the following new 
        items:
            ``General Counsel, Social Security Administration.
            ``Additional officers, Social Security Administration 
        (6).'';
            (4) by adding at the end of section 5316 the following new 
        items:
            ``Inspector General, Social Security Administration.
            ``Additional officers, Social Security Administration 
        (6).''; and
            (5) by striking out ``Secretary of Health and Human 
        Services'' each place it appears in section 8141 and inserting 
        in lieu thereof ``Social Security Board''.
    (g) The Food Stamp Act of 1977 is amended--
            (1) in section 6 (7 U.S.C. 2015), by striking out 
        ``Secretary of Health and Human Services'' and inserting in 
        lieu thereof ``Social Security Board''; and
            (2) in section 17(d) (7 U.S.C. 2026(d)), by inserting after 
        ``Services'' the following: ``and the Social Security Board''.
    (h) Section 707 of title 14, United States Code, is amended by 
striking out ``Secretary of Health and Human Services'' each place it 
appears and inserting in lieu thereof ``Social Security Board''.
    (i)(1) Subsections (c)(1), (c)(2)(E), (g)(1), (g)(3)(A), and 
(g)(3)(B) of section 1402 of the Internal Revenue Code of 1954 are 
amended by striking out ``Secretary of Health and Human Services'' each 
place it appears and inserting in lieu thereof ``Social Security 
Board''.
    (2) Section 3121(b)(10)(B) of such Code is amended by striking out 
each place it appears ``Secretary of Health and Human Services'' and 
inserting in lieu thereof ``Social Security Board''.
    (3) Subsections (d) and (f) of section 6057 of such Code are 
amended by striking out ``Secretary of Health and Human Services'' each 
place it appears and inserting in lieu thereof ``Social Security 
Board''.
    (4) Section 6103(l)(5) of such Code is amended--
            (A) by striking out ``Department of Health and Human 
        Services'' and inserting in lieu thereof ``Social Security 
        Administration''; and
            (B) by striking out ``Secretary of Health and Human 
        Services'' and inserting in lieu thereof ``Social Security 
        Board''.
    (5) Section 6511(d)(5) of such Code is amended by striking out 
``Secretary of Health and Human Services'' and inserting in lieu 
thereof ``Social Security Board''.
    (j) Section 3005 of title 38, United States Code, is amended by 
striking out ``Secretary of Health and Human Services'' and 
``Secretary'' each place they appear and inserting in lieu thereof 
``Social Security Board''.
    (k) The Inspector General Act of 1978 (5 U.S.C. App.) is amended--
            (1) in section 2(1), by striking out ``and the Veterans' 
        Administration'' and inserting in lieu thereof ``the Veterans' 
        Administration, and the Social Security Administration'';
            (2) in section 9(a)(1), by striking out ``and'' at the end 
        of subparagraph (M), and by adding at the end thereof the 
        following new subparagraph:
                    ``(O) of the Social Security Administration (to the 
                extent provided in the Social Security Reorganization 
                Act of 1985), the functions of the Inspector General of 
                the Department of Health and Human Services relating to 
                the administration of the old-age, survivors, and 
                disability insurance program under title II of the 
                Social Security Act and of the supplemental security 
                income program under title XVI of such Act; and'';
            (3) in section 11(1), by striking out ``or'' after 
        ``Transportation'' and inserting in lieu thereof a comma, and 
        by inserting after ``Affairs,'' the following: ``or the Social 
        Security Board,''; and
            (4) in section 11(2), by striking out ``or'' after 
        ``Transportation'', and by inserting after ``Veterans' 
        Administration,'' the following: ``or the Social Security 
        Administration,''.

SEC. 204. 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, or document to the Department of Health and Human Services with 
respect 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, or 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 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.

           TITLE III--EFFECTIVE DATES AND TRANSITIONAL RULES

SEC. 301. EFFECTIVE DATES.

    (a) Amendments in Title I.--(1) Sections 101, 102(a), 103, and 104 
of this Act shall take effect 180 days after the date of the enactment 
of this Act.
    (2) Section 102(b) of this Act shall take effect on the date of the 
enactment of this Act.
    (b) Amendments in Title II.--Title II of this Act shall take effect 
180 days after the date of the enactment of this Act, except that 
subsections (f)(1), (f)(2), (f)(3), (f)(4), and (k) of section 206 
shall take effect on the date of the enactment of this Act.

SEC. 302. TRANSITIONAL RULES.

    (a) Interim Authority for Appointment and Compensation.--At any 
time 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 title I of this Act) may be 
        nominated and appointed, as provided in such section, and
            (2) the Social Security Board, upon nomination and 
        appointment 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 with the approval of the Director of the Office of Management 
and Budget, be used to pay the compensation and expenses of any officer 
appointed 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, 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 the effective 
        date specified in section 301(a)(1),
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 by such Board.
    (c) Continuation of Proceedings.--The provisions of this Act 
(including the amendments made thereby) shall not affect any proceeding 
pending at the time this Act takes effect before the Secretary of 
Health and Human Services 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 the effective date specified in section 
        301(a)(1); 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 when this section 
takes effect, 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 and actions 
had been taken by the Secretary of Health and Human Services in the 
exercise of such functions immediately preceding the effective date of 
this Act. 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(b) of this Act, 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 such section 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 initial appointments to such Board had been made.

                                 <all>

HR 623 IH----2
HR 623 IH----3
HR 623 IH----4