[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 647 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 647

   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 27, 1993

  Mr. Jacobs 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 Administration 
Independence Act of 1993''.

                           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; facilities; and procurement; 
                            seal of office.
Sec. 104. Transfers to the new Social Security Administration.
Sec. 105. Transitional rules.
Sec. 106. Effective dates. 
       TITLE II--CONFORMING AMENDMENTS AND RULES OF CONSTRUCTION

Sec. 201. Amendments to titles II and XVI of the Social Security Act. 
Sec. 202. Other conforming amendments. 
Sec. 203. Rules of construction.
Sec. 204. Effective dates.

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; and
            (5) to provide for delegating major authorities to the 
        Board and the Executive Director.

  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 ending June 30, 
        1997,
            ``(II) one shall be appointed for a term ending June 30, 
        1999, and
            ``(III) one shall be appointed for a term ending June 30, 
        2001,
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, engaged 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, except that the individual first appointed to the office of 
Executive Director shall be appointed for a term ending September 30, 
1997. An individual appointed to a term of office as Executive Director 
after the commencement of such term of office as Executive Director 
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 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, 1996. 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; and
            ``(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 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, 1994. In the event that, as of July 1, 
1994, 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 July 1, 1994, 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; FACILITIES; AND PROCUREMENT; 
              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 Administration Independence Act of 
1993, 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)(1) 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. 
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) The authority of the Administration for facilities 
construction, and any authority of the Administration for automated 
data processing procurement which is delegated thereto, shall be 
provided in the form of contract authority covering the total costs 
thereof, 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.

                            ``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 
July 1, 1994, 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 July 1, 1994,
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 July 1, 1994, 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 July 1, 1994; 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 July 1, 1994, 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 
July 1, 1994. 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. EFFECTIVE DATES.

    (a) In General.--Sections 101, 102(a), 103, and 104 of this Act 
shall take effect July 1, 1994.
    (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--CONFORMING AMENDMENTS AND RULES OF CONSTRUCTION

SEC. 201. 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. 202. 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. 203. 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. 204. EFFECTIVE DATES.

    (a) In General.--The preceding provisions of this title shall take 
effect July 1, 1994.
    (b) 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.

                                 <all>

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HR 647 IH--3