[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2233 Introduced in House (IH)]

  1st Session
                                H. R. 2233

    To amend the Railroad Retirement Act, the Railroad Unemployment 
   Insurance Act, and related statutes to ease administration of the 
 railroad retirement and railroad unemployment insurance programs, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 4, 1995

  Ms. Molinari (by request) introduced the following bill; which was 
referred to the Committee on Transportation and Infrastructure, and in 
    addition to the Committee on Ways and Means, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
    To amend the Railroad Retirement Act, the Railroad Unemployment 
   Insurance Act, and related statutes to ease administration of the 
 railroad retirement and railroad unemployment insurance programs, and 
                          for other purposes.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Railroad 
Retirement and Railroad Unemployment Insurance Amendments Act of 
1995''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
                     TITLE I--FINANCIAL AMENDMENTS

Sec. 101. Disclosure of information to Railroad Retirement Board.
Sec. 102. Uncashed checks.
Sec. 103. Investment of Railroad Retirement Trust Funds.
                      TITLE II--BENEFIT AMENDMENTS

Sec. 201. Annuities as marital property.
Sec. 202. Requirement for a social security number.
Sec. 203. Repeal of obsolete provision.
          TITLE III--ADMINISTRATIVE SIMPLIFICATION AMENDMENTS

Sec. 301. Single administrative account.
Sec. 302. Continuing disability reviews.
                  TITLE IV--DEBT COLLECTION AMENDMENTS

Sec. 401. Debt collection.
                      TITLE V--PENALTY AMENDMENTS

Sec. 501. Criminal penalties.
Sec. 502. Program Fraud Civil Remedies Act finds and penalties.
                     TITLE I--FINANCIAL AMENDMENTS

SEC. 101. DISCLOSURE OF INFORMATION TO RAILROAD RETIREMENT BOARD.

    Section 6103(l)(1)(C) of the Internal Revenue Code of 1986 is 
amended to read as follows:
                    ``(C) taxes imposed by chapters 22 and 23A, to the 
                Railroad Retirement Board for purposes of its 
                administration of the Railroad Retirement and Railroad 
                Unemployment Insurance Acts.''

SEC. 102. UNCASHED CHECKS.

    (a) In General.--Section 3334(b) of title 31 of the United States 
Code is amended--
            (1) in paragraph (2), by striking ``The'' and inserting 
        ``Except as provided in paragraph (3), the''; and
            (2) by adding at the end the following:
            ``(3) The proceeds of checks canceled pursuant to paragraph 
        (1) which were drawn on accounts established under the Railroad 
        Retirement Act or the Railroad Unemployment Insurance Act shall 
        be recredited to the account or accounts initially charged for 
        the payment.''
    (b) Effective Date.--The amendments made by this section shall 
apply to checks issued before October 1, 1989.

SEC. 103. INVESTMENT OF RAILROAD RETIREMENT TRUST FUNDS.

    Section 15(e) of the Railroad Retirement Act is amended--
            (1) by striking ``notes'' in the fifth sentence and 
        inserting ``obligations''; and
            (2) by striking ``three years'' in the fifth sentence and 
        inserting ``four years''.
                      TITLE II--BENEFIT AMENDMENTS

SEC. 201. ANNUITIES AS MARITAL PROPERTY.

    (a) In General.--Section 14(b)(2) of the Railroad Retirement Act is 
amended to read as follows:
    ``(2) This section shall not operate to prohibit the 
characterization or treatment of that portion of an annuity under this 
Act which is computed under section 3(b), 3(e), 3(g) or 3(h) of this 
Act as community property for the purposes of, or property subject to, 
distribution in accordance with a court decree of divorce, annulment, 
or legal separation or the terms of any court-approved property 
settlement incident to any such court decree. The Board shall make 
payments of such portions in accordance with any such characterization 
or treatment or any such decree or settlement.''.
    (b) Effective Date.--The amendment made by this section shall apply 
with respect to annuity payments payable for months beginning after 
August 12, 1983.

SEC. 202. REQUIREMENT FOR A SOCIAL SECURITY NUMBER.

    (a) In General.--Section 2 of the Railroad Retirement Act of 1974 
is amended by adding at the end the following:
    ``(i) The Board shall require, as a condition for either the 
receipt of an annuity or to be included in the computation of an 
annuity under this Act, that an individual furnish satisfactory proof 
of a social security account number assigned to such individual by the 
Social Security Administration.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to claims for benefits not awarded prior to the date of the enactment 
of this Act.

SEC. 203. REPEAL OF OBSOLETE PROVISION.

    Section 17 of the Railroad Unemployment Insurance Act (45 U.S.C. 
368) providing supplemental benefits is repealed.

          TITLE III--ADMINISTRATIVE SIMPLIFICATION AMENDMENTS

SEC. 301. SINGLE ADMINISTRATIVE ACCOUNT.

    (a) Railroad Retirement.--Section 15(h) of the Railroad Retirement 
Act of 1974 is amended to read as follows:
    ``(h)(1) Notwithstanding any other provision of law, there are 
authorized to be made available for expenditure out of the Railroad 
Retirement Account, the Railroad Retirement Supplemental Account, the 
Social Security Equivalent Benefit Account, and the railroad 
unemployment insurance account, such sums as the Congress may deem 
appropriate to pay the costs of administration of this Act and the 
Railroad Unemployment Insurance Act.
    ``(2) If at the beginning of a fiscal year or at any time during a 
fiscal year there is a lapse in appropriations to pay the costs of 
administration of this Act or the Railroad Unemployment Insurance Act, 
the Board is authorized to make expenditures out of the above mentioned 
accounts to pay the costs of such administration at a level not 
exceeding the most recent current level until the earlier of--
            ``(A) enactment into law of an appropriation Act or 
        Resolution providing for the payment of such costs; or
            ``(B) enactment into law of an Act repealing this 
        provision.
    ``(3) During each fiscal year or after the close of such fiscal 
year (or at both times), the Board shall analyze the costs of 
administration of this Act and the Railroad Unemployment Insurance Act 
during the appropriate part or all of the fiscal year in order to 
determine the portion of such costs which should be borne by each of 
the accounts and shall certify to the Secretary of the Treasury the 
amount, if any, which should be transferred among such accounts in 
order to assure that each of the accounts bears its proper share of the 
costs incurred during such fiscal year for administration of this Act 
and the Railroad Unemployment Insurance Act. The Secretary of the 
Treasury is authorized and directed to transfer any such amount 
(determined under the preceding sentence) among such accounts in 
accordance with any certification so made. Determinations of the Board 
as to whether funds made available for administration of this Act and 
the Railroad Unemployment Insurance Act are properly chargeable with 
the authorized expenses, or parts thereof, incurred in the 
administration of this Act or the Railroad Unemployment Insurance Act 
shall be binding and conclusive for all purposes and upon all persons, 
including the Comptroller General and any other administrative or 
accounting officer, employee, or agent of the United States, and shall 
not be subject to review in any manner.''.
    (b) Deposit of Unemployment Contributions.--Section 8(i) of the 
Railroad Unemployment Insurance Act is amended to read as follows:
    ``(i) The contributions required by this Act shall be collected by 
the Board and shall be deposited by it with the Secretary of the 
Treasury of the United States to the credit of the railroad 
unemployment insurance account.''.
    (c) Unemployment Account.--Section 10(a) of the Railroad 
Unemployment Insurance Act is amended--
            (1) by inserting ``(1)'' after ``(a)'';
            (2) by striking ``(i) such part of all contributions 
        collected pursuant to section 8 of this Act as is in excess of 
        0.65 per centum of the total compensation on which such 
        contributions are based,'' and inserting ``(i) all 
        contributions collected pursuant to section 8 of this Act''; 
        and
            (3) by adding at the end the following:
    ``(2) Notwithstanding any other provision of law, there are 
authorized to be made available for expenditure out of the railroad 
unemployment insurance account, the Railroad Retirement Account, the 
Railroad Retirement Supplemental Account, and the Social Security 
Equivalent Benefit Account, such sums as the Congress may deem 
appropriate to pay the costs of administration of this Act and the 
Railroad Retirement Act. If at the beginning of a fiscal year or at any 
time during a fiscal year there is a lapse in appropriations to pay the 
costs of administration of this Act or the Railroad Retirement Act, the 
Board is authorized to make expenditures out of the above mentioned 
accounts to pay the costs of such administration at a level not 
exceeding the most recent current level until the earlier of (A) 
enactment into law of an appropriation Act or Resolution providing for 
the payment of such costs or (B) enactment into law of an Act repealing 
this provision. During each fiscal year or after the close of such 
fiscal year (or at both times), the Board shall analyze the costs of 
administration of this Act and the Railroad Retirement Act during the 
appropriate part or all of the fiscal year in order to determine the 
portion of such costs which should be borne by each of the accounts and 
shall certify to the Secretary of the Treasury the amount, if any, 
which should be transferred among such accounts in order to assure that 
each of the accounts bears its proper share of the costs incurred 
during such fiscal year for administration of this Act and the Railroad 
Retirement Act. The Secretary of the Treasury is authorized and 
directed to transfer any such amount (determined under the preceding 
sentence) among such accounts in accordance with any certification so 
made. Determinations of the Board, as to whether funds made available 
for administration of this Act and the Railroad Retirement Act of 1974 
are properly chargeable with the authorized expenses, or parts thereof, 
incurred in the administration of this Act or the Railroad Retirement 
Act of 1974, shall be binding and conclusive for all purposes and upon 
all persons, including the Comptroller General and any other 
administrative or accounting officer, employee, or agent of the United 
States, and shall not be subject to review in any manner.''.
    (d) Repeal of Definition.--Section 1(q) of the Railroad 
Unemployment Insurance Act is repealed.
    (e) Repeal of Administration Fund.--Section 11 of the Railroad 
Unemployment Insurance Act is repealed.
    (f) Conforming Amendments.--
            (1) Section 8(a)(1)(C)(v) of the Railroad Unemployment 
        Insurance Act is amended to read as follows:
                            ``(v) Step 5.--Add 0.65 to the percentage 
                        rate arrived at under clause (iv), representing 
                        the portion of the employer's contribution 
                        which is to be deposited to the credit of the 
                        account for administrative purposes.''.
            (2) Section 8(a)(8)(B) of the Railroad Unemployment 
        Insurance Act is amended to read as follows:
                    ``(B) Step 2.--Subtract an amount equal to 0.65 per 
                centum of the contribution rate which was deposited to 
                the credit of the account for administrative 
                purposes.''.
            (3) Section 8(a)(10) of the Railroad Unemployment Insurance 
        Act is amended--
                    (A) in subparagraph (C), by inserting ``(i)'' 
                before ``not chargeable'' and by striking ``to the fund 
                under section 11'' and inserting ``(ii) not chargeable 
                as an expense of administration,
                 other than expenditures from the Limitation on Review 
or the Special Management Improvement Fund'';
                    (B) so that subparagraph (E) reads as follows:
                    ``(E) Step 5.--Subtract an amount equal to the 
                amount by which that portion of the account 
                attributable to the 0.65 per centum contribution rate 
                for administrative expenses as of the end of the prior 
                fiscal year exceeded $6,000,000.'';
                    (C) in subparagraph (F) by adding at the end ``, 
                except that portion of employer contributions 
                attributable to the 0.65 per centum contribution for 
                administrative expenses''.
            (4) Section 8(a)(12)(A) of the Railroad Unemployment 
        Insurance Act is amended by striking the second sentence and 
        inserting: ``In determining such balance as of June 30 of any 
        year, that portion of the balance, up to $6,000,000, as is 
        attributable to the 0.65 per centum contribution for 
        administrative expenses shall be disregarded if greater than 
        zero.''.
            (5) Section 8(a)(14)(A) of the Railroad Unemployment 
        Insurance Act is amended by striking the second sentence and 
        inserting: ``In determining such balance as of June 30 of any 
        year, that portion of the balance, up to $6,000,000, as is 
        attributable to the 0.65 per centum contribution for 
        administrative expenses shall be disregarded if greater than 
        zero.''.
            (6) Section 8(e) of the Railroad Unemployment Insurance Act 
        is amended by striking ``fund'' and inserting ``account and 
        shall be treated in the same manner as if the payment were a 
        payment of contributions for administrative expenses''.
            (7) Section 10(b) of the Railroad Unemployment Insurance 
        Act is amended by inserting ``administrative costs,'' after 
        ``the'' and before ``benefits'' in the first sentence.
            (8) Section 10(d) of the Railroad Unemployment Insurance 
        Act is amended by inserting ``administrative costs,'' before 
        ``benefits'' each place it appears.
            (9) Section 10(e) of the Railroad Unemployment Insurance 
        Act is amended by striking ``or the railroad unemployment 
        insurance administration fund''.
            (10) Section 10(f) of the Railroad Unemployment Insurance 
        Act is amended by inserting ``and'' before ``the railroad 
        unemployment insurance account'' and by striking ``and the 
        railroad unemployment insurance administration fund,''.
            (11) Section 10(g) of the Railroad Unemployment Insurance 
        Act is amended by striking ``, and out of the railroad 
        unemployment insurance administration fund for the payment of'' 
        and inserting ``and'' and by striking ``or such fund, as the 
        case may be,''.
            (12) Section 12(d) of the Railroad Unemployment Insurance 
        Act is amended by striking ``administration fund established 
        pursuant to section 11(a) of this Act'' and inserting ``account 
        established pursuant to section 10 of this Act''.
            (13) Section 12(e) of the Railroad Unemployment Insurance 
        Act is amended by striking ``fund'' in the last sentence and 
        inserting ``account''.
    (g) Effective Dates.--
            (1) Except as provided in paragraphs (2) and (3), the 
        amendments made by this section shall take effect October 1, 
        1995.
            (2) The amendments made by subsections (a) and (c)(3) shall 
        be effective with respect to fiscal years beginning with fiscal 
        year 1996.
            (3) The amendments made by subsections (d) and (e) shall 
        take effect October 1, 1995, except that the railroad 
        unemployment insurance administration fund shall be maintained 
        by the Secretary of the Treasury in the unemployment trust fund 
        until all outstanding obligations of the railroad unemployment 
        insurance administration fund incurred prior to October 1, 
        1995, have been settled. As soon as possible after September 
        30, 1995, the Board shall determine the amount of the 
        unobligated balance in the railroad unemployment insurance 
        administration fund and shall direct the Secretary of the 
        Treasury to transfer such amount to the railroad unemployment 
        insurance account and the Secretary shall immediately make such 
        transfer. The amount so transferred shall be considered as an 
        interfund transfer and shall not be considered as income to the 
        railroad unemployment insurance account for purposes of 
        determining the system unallocated charge balance under section 
        8(a)(10) of the Railroad Unemployment Insurance Act.

SEC. 302. CONTINUING DISABILITY REVIEWS.

    (a) In General.--Section 15 of the Railroad Retirement Act is 
amended by adding at the end the following new subsection:
    ``(j)(1) There is hereby created in the Railroad Retirement Account 
a Continuing Disability Review Account.
 The Continuing Disability Review Account shall consist of such amounts 
as may be transferred to it under this subsection. The balance in the 
Continuing Disability Review Account shall be available without further 
appropriation action for expenditures certified under paragraph (3).
    ``(2)(A) Not later than September 1 of each calendar year, the 
Board shall--
            ``(i) estimate the present value of savings to the Railroad 
        Retirement Account and the Social Security Equivalent Benefit 
        Account which will accrue for all years as a result of the 
        cessation of annuity payments during the fiscal year ending on 
        September 30 of the prior calendar year based on continuing 
        disability reviews carried out pursuant to section 2(a)(3) 
        during or prior to such fiscal year,
            ``(ii) determine the portion of such estimate attributable 
        to each of the accounts described in clause (i),
            ``(iii) certify the amount of such estimate and such 
        portion to the Secretary of the Treasury, and
            ``(iv) direct that an amount equal to the amount determined 
        by the Board under paragraph (3) of this subsection, but not 
        more than the savings estimated under paragraph (2), be 
        transferred to the Continuing Disability Review Account from 
        the accounts described in clause (i) in such proportion as the 
        savings from each account bears to the total savings from both 
        accounts.
    ``(B) Upon receipt of the certification and direction by the 
Secretary of the Treasury under subparagraph (A), the Secretary shall 
transfer to the Continuing Disability Review Account the amount so 
determined.
    ``(3)(A) Not later than September 15 of each calendar year, the 
Board shall--
            ``(i) project the accrual balance of the Continuing 
        Disability Review Account as of the close of business on 
        September 30 of the calendar year;
            ``(ii) estimate the total amount of expenditures which will 
        be necessary to carry out continuing disability reviews 
        (earnings reviews and medical improvement reviews) under 
        section 2(a)(3) of this Act during the fiscal year beginning 
        October 1;
            ``(iii) subtract the amount projected under clause (i) from 
        the amount estimated under clause (ii) so as to determine the 
        amount of additional funds, if any, needed to pay the costs of 
        continuing disability reviews for the fiscal year beginning 
        October 1; and
            ``(iv) certify the amount, if any, determined under clause 
        (iii) to the Secretary of the Treasury.
    ``(B) The expenditures referred to in subparagraph (A)(ii) shall 
include the cost of staffing, training, purchase of medical and other 
evidence, and processing related continuing disability reviews and any 
appeals arising from those reviews.
    ``(C) To the extent of available funds in the Continuing Disability 
Review Account, and prior to any action thereon by the General 
Accounting Office, the Secretary of the Treasury shall, upon the 
commencement of each fiscal year, make available to the Board from the 
Continuing Disability Review Account an amount equal to the total of 
estimated expenditures for such fiscal year as described in 
subparagraph (A).
    ``(D) The Board shall use funds made available pursuant to this 
subsection for the purpose of carrying out continuing disability 
reviews under section 2(a)(3). Nothing contained in this subsection 
shall prohibit the Board from using funds otherwise made available for 
administrative expenses to conduct continuing disability reviews.''.

                  TITLE IV--DEBT COLLECTION AMENDMENTS

SEC. 401. DEBT COLLECTION.

    (a) From Other Payments.--The last sentence of section 10(a) of the 
Railroad Retirement Act of 1974, as amended, is amended to read as 
follows: ``Notwithstanding
 section 207 of the Social Security Act, the Board shall also have the 
authority to recover the amount of any overpayment or erroneous payment 
of benefits made to an individual under this Act, the Railroad 
Unemployment Insurance Act, or pursuant to section 7(b)(2) of this Act, 
from any payment to such individual, or to any other person on the 
basis of the same wages and self-employment income, under section 
7(b)(2) of this Act.''.
    (b) Administrative Offset.--Section 10 of the Railroad Retirement 
Act of 1974 is amended by adding at the end thereof a new subsection 
(e) to read as follows:
    ``(e) In addition to the authority otherwise granted by this 
section to recover erroneous payments and overpayments of benefits 
under this Act, the Board shall have the authority to recover such 
erroneous payments and overpayments by means of administrative offset 
pursuant to section 3716 of title 31, United States Code.''.
    (c) Railroad Unemployment.--Section 2(d) of the Railroad 
Unemployment Insurance Act is amended--
            (1) by inserting after ``entitled under this Act'' and 
        before ``or any other Act'' in the first sentence thereof the 
        following: ``, or in subsequent payments made to the 
        individual, or any person on the basis of the same 
        compensation, wages, or self-employment income, under the 
        Railroad Retirement Act (including payments under section 
        7(b)(2) thereof, notwithstanding section 207 of the Social 
        Security Act).''; and
            (2) by adding at the end thereof the following:
``In addition to the authority otherwise granted by this subsection to 
recover erroneous payments and overpayments of benefits under this Act, 
the Board shall have the authority to recover such erroneous payments 
and overpayments by means of administrative offset pursuant to section 
3716 of title 31, United States Code.''.

                      TITLE V--PENALTY AMENDMENTS

SEC. 501. CRIMINAL PENALTIES.

    (a) Railroad Retirement.--Section 13(a) of the Railroad Retirement 
Act of 1974 is amended by striking ``one year'' and inserting ``five 
years''.
    (b) Railroad Unemployment.--Section 9(a) of the Railroad 
Unemployment Insurance Act is amended by striking ``one year'' and 
inserting ``five years''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to acts or omissions after the date of enactment of 
this Act.

SEC. 502. PROGRAM FRAUD CIVIL REMEDIES ACT FINDS AND PENALTIES.

    Section 3806(g)(2) of title 31, United States Code, is amended by 
adding at the end the following:
                    ``(F) Any amount of a penalty or assessment imposed 
                by the Railroad Retirement Board under this chapter 
                with respect to a claim or statement made in connection 
                with benefits under the Railroad Retirement Act shall 
                be deposited in the Railroad Retirement Account.
                    ``(G) Any amount of a penalty or assessment imposed 
                by the Railroad Retirement Board under this chapter 
                with respect to a claim or statement made in connection 
                with benefits under the Railroad Unemployment Insurance 
                Act shall be deposited in the Railroad Unemployment 
                Insurance Account.''.
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HR 2233 IH----2