[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1432 Placed on Calendar Senate (PCS)]





                                                       Calendar No. 252

104th CONGRESS

  1st Session

                                S. 1432

_______________________________________________________________________

                                 A BILL

 To amend title II of the Social Security Act to provide for increases 
in the amounts of allowable earnings under the social security earnings 
 limit for individuals who have attained retirement age, and for other 
                               purposes.

_______________________________________________________________________

                           November 29, 1995

            Read the second time and placed on the calendar





                                                       Calendar No. 252
104th CONGRESS
  1st Session
                                S. 1432

 To amend title II of the Social Security Act to provide for increases 
in the amounts of allowable earnings under the social security earnings 
 limit for individuals who have attained retirement age, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 28, 1995

Mr. McCain introduced the following bill; which was read the first time

                           November 29, 1995

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 A BILL


 
 To amend title II of the Social Security Act to provide for increases 
in the amounts of allowable earnings under the social security earnings 
 limit for individuals who have attained retirement age, 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.

    This Act may be cited as the ``Senior Citizens' Right to Work Act 
of 1995''.

SEC. 2. INCREASES IN MONTHLY EXEMPT AMOUNT FOR PURPOSES OF THE SOCIAL 
              SECURITY EARNINGS LIMIT.

    (a) Increase in Monthly Exempt Amount for Individuals Who Have 
Attained Retirement Age.--Section 203(f)(8)(D) of the Social Security 
Act (42 U.S.C. 403(f)(8)(D)) is amended to read as follows:
            ``(D) Notwithstanding any other provision of this 
        subsection, the exempt amount which is applicable to an 
        individual who has attained retirement age (as defined in 
        section 216(l)) before the close of the taxable year involved 
        shall be--
                    ``(i) for each month of any taxable year ending 
                after 1995 and before 1997, $1,166.66\2/3\,
                    ``(ii) for each month of any taxable year ending 
                after 1996 and before 1998, $1,250.00,
                    ``(iii) for each month of any taxable year ending 
                after 1997 and before 1999, $1,333.33\1/3\,
                    ``(iv) for each month of any taxable year ending 
                after 1998 and before 2000, $1,416.66\2/3\,
                    ``(v) for each month of any taxable year ending 
                after 1999 and before 2001, $1,500.00,
                    ``(vi) for each month of any taxable year ending 
                after 2000 and before 2002, $2,083.33\1/3\, and
                    ``(vii) for each month of any taxable year ending 
                after 2001 and before 2003, $2,500.00.''.
    (b) Conforming Amendments.--
            (1) Section 203(f)(8)(B)(ii) of such Act (42 U.S.C. 
        403(f)(8)(B)(ii)) is amended--
                    (A) by striking ``the taxable year ending after 
                1993 and before 1995'' and inserting ``the taxable year 
                ending after 2001 and before 2003 (with respect to 
                individuals described in subparagraph (D)) or the 
                taxable year ending after 1993 and before 1995 (with 
                respect to other individuals)''; and
                    (B) in subclause (II), by striking ``for 1992'' and 
                inserting ``for 2000 (with respect to individuals 
                described in subparagraph (D)) or 1992 (with respect to 
                other individuals)''.
            (2) The second sentence of section 223(d)(4)(A) of such Act 
        (42 U.S.C. 423(d)(4)(A)) is amended by striking ``the exempt 
        amount under section 203(f)(8) which is applicable to 
        individuals described in subparagraph (D) thereof'' and 
        inserting the following: ``an amount equal to the exempt amount 
        which would be applicable under section 203(f)(8), to 
        individuals described in subparagraph (D) thereof, if section 2 
        of the Senior Citizens' Right to Work Act of 1995 had not been 
        enacted''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to taxable years ending after 1995.

SEC. 3. ESTABLISHMENT OF DISABILITY INSURANCE CONTINUING DISABILITY 
              REVIEW ADMINISTRATION REVOLVING ACCOUNT.

    (a) Continuing Disability Review Administration Revolving Account 
for Title II Disability Benefits in the Federal Disability Insurance 
Trust Fund.--
            (1) In general.--Section 201 of the Social Security Act (42 
        U.S.C. 401) is amended by adding at the end the following new 
        subsection:
    ``(n)(1) There is hereby created in the Federal Disability 
Insurance Trust Fund a Continuing Disability Review Administration 
Revolving Account (hereinafter in this subsection referred to as the 
`Account'). The Account shall consist initially of $300,000,000 (which 
is hereby transferred to the Account from amounts otherwise available 
in such Trust Fund) and shall also consist thereafter of such other 
amounts as may be transferred to it under this subsection. The balance 
in the Account shall be available solely for expenditures certified 
under paragraph (2).
    ``(2)(A) Before October 1 of each calendar year, the Chief Actuary 
of the Social Security Administration shall--
            ``(i) estimate the present value of savings to the Federal 
        Old-Age and Survivors Insurance Trust Fund, the Federal 
        Disability Insurance Trust Fund, the Federal Hospital Insurance 
        Trust Fund, and the Federal Supplementary Medical Insurance 
        Trust Fund which will accrue for all years as a result of 
        cessations of benefit payments resulting from continuing 
        disability reviews carried out pursuant to the requirements of 
        section 221(i) during the fiscal year ending on September 30 of 
        such calendar year (increased or decreased as appropriate to 
        account for deviations of estimates for prior fiscal years from 
        the actual amounts for such fiscal years), and
            ``(ii) certify the amount of such estimate to the Managing 
        Trustee.
    ``(B) Upon receipt of certification by the Chief Actuary under 
subparagraph (A), the Managing Trustee shall transfer to the Account 
from amounts otherwise in the Trust Fund an amount equal to the 
estimated savings so certified.
    ``(C) To the extent of available funds in the Account, upon 
certification by the Chief Actuary that such funds are currently 
required to meet expenditures necessary to provide for continuing 
disability reviews required under section 221(i), the Managing Trustee 
shall make available to the Commissioner of Social Security from the 
Account the amount so certified.
    ``(D) The expenditures referred to in subparagraph (C)(i) shall 
include, but not be limited to, the cost of staffing, training, 
purchase of medical and other evidence, and processing related to 
appeals (including appeal hearings) and to overpayments and related 
indirect costs.
    ``(E) The Commissioner shall use funds made available pursuant to 
this paragraph solely for the purposes described in subparagraph 
(C).''.
            (2) Conforming amendment.--Section 201(g)(1)(A) of such Act 
        (42 U.S.C. 401(g)(1)(A)) is amended in the last sentence by 
        inserting ``(other than expenditures from available funds in 
        the Continuing Disability Review Administration Revolving 
        Account in the Federal Disability Insurance Trust Fund made 
        pursuant to subsection (n))'' after ``is responsible'' the 
        first place it appears.
            (3) Annual report.--Section 221(i)(3) of such Act (42 
        U.S.C. 421(i)(3)) is amended--
                    (A) by striking ``and the number'' and inserting 
                ``the number'';
                    (B) by striking the period at the end and inserting 
                a comma; and
                    (C) by adding at the end the following: ``and a 
                final accounting of amounts transferred to the 
                Continuing Disability Review Administration Revolving 
                Account in the Federal Disability Insurance Trust Fund 
                during the year, the amount made available from such 
                Account during such year pursuant to certifications 
                made by the Chief Actuary of the Social Security 
                Administration under section 201(n)(2)(A), and 
                expenditures made by the Commissioner of Social 
                Security for the purposes described in section 
                201(n)(2)(C) during the year, including a comparison of 
                the number of continuing disability reviews conducted 
                during the year with the estimated number of continuing 
                disability reviews upon which the estimate of such 
                expenditures was made under section 201(n)(2)(A).''.
    (b) Effective Date and Sunset.--
            (1) Effective date.--The amendments made by subsection (a) 
        shall apply for fiscal years beginning on or after October 1, 
        1995, and ending on or before September 30, 2002.
            (2) Sunset.--Effective October 1, 2002, the Continuing 
        Disability Review Administration Revolving Account in the 
        Federal Disability Insurance Trust Fund shall cease to exist, 
        any balance in such Account shall revert to funds otherwise 
        available in such Trust Fund, and sections 201 and 221 of the 
        Social Security Act shall read as if the amendments made by 
        subsection (a) had not been enacted.
    (c) Office of Chief Actuary in the Social Security 
Administration.--
            (1) In general.--Section 702 of such Act (42 U.S.C. 902) is 
        amended--
                    (A) by redesignating subsections (c) and (d) as 
                subsections (d) and (e), respectively; and
                    (B) by inserting after subsection (b) the following 
                new subsection:

                            ``Chief Actuary

    ``(c)(1) There shall be in the Administration a Chief Actuary, who 
shall be appointed by, and in direct line of authority to, the 
Commissioner. The Chief Actuary shall be appointed from individuals who 
have demonstrated, by their education and experience, superior 
expertise in the actuarial sciences. The Chief Actuary shall serve as 
the chief actuarial officer of the Administration, and shall exercise 
such duties as are appropriate for the office of the Chief Actuary and 
in accordance with professional standards of actuarial independence. 
The Chief Actuary may be removed only for cause.
    ``(2) The Chief Actuary shall be compensated at the highest rate of 
basic pay for the Senior Executive Service under section 5382(b) of 
title 5, United States Code.''.
            (2) Effective date of subsection.--The amendments made by 
        this subsection shall take effect on the date of the enactment 
        of this Act.

SEC. 4. ENTITLEMENT OF STEPCHILDREN TO CHILD'S INSURANCE BENEFITS BASED 
              ON ACTUAL DEPENDENCY ON STEPPARENT SUPPORT.

    (a) Requirement of Actual Dependency for Future Entitlements.--
            (1) In general.--Section 202(d)(4) of the Social Security 
        Act (42 U.S.C. 402(d)(4)) is amended by striking ``was living 
        with or''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to benefits of individuals who become 
        entitled to such benefits for months after the third month 
        following the month in which this Act is enacted.
    (b) Termination of Child's Insurance Benefits Based on Work Record 
of Stepparent Upon Natural Parent's Divorce From Stepparent.--
            (1) In general.--Section 202(d)(1) of the Social Security 
        Act (42 U.S.C. 402(d)(1)) is amended--
                    (A) by striking ``or'' at the end of clause (F);
                    (B) by striking the period at the end of clause (G) 
                and inserting ``; or''; and
                    (C) by inserting after clause (G) the following new 
                clause:
            ``(H) if the benefits under this subsection are based on 
        the wages and self-employment income of a stepparent who is 
        subsequently divorced from such child's natural parent, the 
        sixth month after the month in which the Commissioner of Social 
        Security receives formal notification of such divorce.''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply with respect to notifications of divorces received 
        by the Commissioner of Social Security on or after the date of 
        the enactment of this Act.

SEC. 5. RECOMPUTATION OF BENEFITS AFTER NORMAL RETIREMENT AGE.

    (a) In General.--Section 215(f)(2)(D)(i) of the Social Security Act 
(42 U.S.C. 415(f)(2)(D)(i)) is amended to read as follows:
            ``(i) in the case of an individual who did not die in the 
        year with respect to which the recomputation is made, for 
        monthly benefits beginning with benefits for January of--
                    ``(I) the second year following the year with 
                respect to which the recomputation is made, in any such 
                case in which the individual has attained retirement 
                age (as defined in section 216(l)) as of the end of the 
                year preceding the year with respect to which the 
                recomputation is made and the year with respect to 
                which the recomputation is made would not be 
                substituted in recomputation under this subsection for 
                a benefit computation year in which no wages or self-
                employment income have been credited previously to such 
                individual, or
                    ``(II) the first year following the year with 
                respect to which the recomputation is made, in any 
                other such case; or''.
    (b) Conforming Amendments.--
            (1) Section 215(f)(7) of such Act (42 U.S.C. 415(f)(7)) is 
        amended by inserting ``, and as amended by section 5(b)(2) of 
        the Senior Citizens' Right to Work Act of 1995,'' after ``This 
        subsection as in effect in December 1978''.
            (2) Subparagraph (A) of section 215(f)(2) of the Social 
        Security Act as in effect in December 1978 and applied in 
        certain cases under the provisions of such Act as in effect 
        after December 1978 is amended--
                    (A) by striking ``in the case of an individual who 
                did not die'' and all that follows and inserting ``in 
                the case of an individual who did not die in the year 
                with respect to which the recomputation is made, for 
                monthly benefits beginning with benefits for January 
                of--''; and
                    (B) by adding at the end the following:
                    ``(i) the second year following the year with 
                respect to which the recomputation is made, in any such 
                case in which the individual has attained age 65 as of 
                the end of the year preceding the year with respect to 
                which the recomputation is made and the year with 
                respect to which the recomputation is made would not be 
                substituted in recomputation under this subsection for 
                a benefit computation year in which no wages or self-
                employment income have been credited previously to such 
                individual, or
                    ``(ii) the first year following the year with 
                respect to which the recomputation is made, in any 
                other such case; or''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to recomputations of primary insurance amounts based 
on wages paid and self employment income derived after 1994 and with 
respect to benefits payable after December 31, 1995.

SEC. 6. ELIMINATION OF THE ROLE OF THE SOCIAL SECURITY ADMINISTRATION 
              IN PROCESSING ATTORNEY FEES.

    (a) Actions Before the Commissioner.--Section 206(a) of the Social 
Security Act (42 U.S.C. 406(a)) is amended--
            (1) in paragraph (1), by striking the fourth and fifth 
        sentences;
            (2) by striking paragraphs (2), (3), and (4);
            (3) by inserting after paragraph (1) the following new 
        paragraph:
    ``(2)(A) No person, agent, or attorney may charge in excess of 
$4,000 (or, if higher, the amount set pursuant to subparagraph (B)) for 
services performed in connection with any claim before the Commissioner 
under this title, or for services performed in connection with 
concurrent claims before the Commissioner under this title and title 
XVI.
    ``(B) The Commissioner may increase the dollar amount under 
subparagraph (A) whenever the Commissioner determines that such an 
increase is warranted. The Commissioner shall publish any such 
increased amount in the Federal Register.
    ``(C) Any agreement in violation of this paragraph shall be void.
    ``(D) Whenever the Commissioner makes a favorable determination in 
connection with any claim for benefits under this title by a claimant 
who is represented by a person, agent, or attorney, the Commissioner 
shall provide the claimant and such person, agent, or attorney a 
written notice of--
            ``(i) the determination,
            ``(ii) the dollar amount of any benefits payable to the 
        claimant, and
            ``(iii) the maximum amount under paragraph (2) that may be 
        charged for services performed in connection with such 
        claim.''; and
            (4) by redesignating paragraph (5) as paragraph (3).
    (b) Judicial Proceedings.--Section 206(b)(1) of such Act (42 U.S.C. 
406(b)(1)) is amended--
            (1) in the first sentence of subparagraph (A), by striking 
        ``representation,'' and all that follows and inserting the 
        following: ``representation. In determining a reasonable fee, 
        the court shall take into consideration the amount of the fee, 
        if any, that such attorney, or any other person, agent, or 
        attorney, may charge the claimant for services performed in 
        connection with the claimant's claim when it was pending before 
        the Commissioner.'';
            (2) in the second sentence of subparagraph (A), by striking 
        ``or certified for payment'';
            (3) by striking subparagraph (B); and
            (4) by striking ``(b)(1)(A)'' and inserting ``(b)(1)''.
    (c) Conforming Amendments.--
            (1) Section 223(h)(3) of such Act (42 U.S.C. 423(h)(3)) is 
        amended by striking all that follows ``obtained)'' and 
        inserting a period.
            (2) Section 1127(a) of such Act (42 U.S.C. 1320a-6(a)) is 
        amended by striking the last sentence.
            (3) Section 1631(d)(2)(A) of such Act (42 U.S.C. 
        1383(d)(2)(A)) is amended--
                    (A) by striking ``(other than paragraph (4) 
                thereof)''; and
                    (B) by striking all that follows ``title II'' and 
                inserting a period.
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to--
            (1) any claim for benefits under the old-age, survivors, 
        and disability insurance program under title II of the Social 
        Security Act, the supplemental security income program under 
        title XVI of such Act, or the black lung program under part B 
        of the Black Lung Benefits Act that is initially filed on or 
        after the 60th day following the date of the enactment of this 
        Act, and
            (2) any claim for such benefits filed before such 60th day 
        by a claimant who is first represented by any person, agent, or 
        attorney in connection with such claim on or after such 60th 
        day.

SEC. 7. DENIAL OF DISABILITY BENEFITS TO DRUG ADDICTS AND ALCOHOLICS.

    (a) Amendments Relating to Title II Disability Benefits.--
            (1) In general.--Section 223(d)(2) of the Social Security 
        Act (42 U.S.C. 423(d)(2)) is amended by adding at the end the 
        following:
    ``(C) An individual shall not be considered to be disabled for 
purposes of this title if alcoholism or drug addiction would (but for 
this subparagraph) be a contributing factor material to the 
Commissioner's determination that the individual is disabled.''.
            (2) Representative payee requirements.--
                    (A) Section 205(j)(1)(B) of such Act (42 U.S.C. 
                405(j)(1)(B)) is amended to read as follows:
    ``(B) In the case of an individual entitled to benefits based on 
disability, the payment of such benefits shall be made to a 
representative payee if the Commissioner of Social Security determines 
that such payment would serve the interest of the individual because 
the individual also has an alcoholism or drug addiction condition (as 
determined by the Commissioner) that prevents the individual from 
managing such benefits.''.
                    (B) Section 205(j)(2)(C)(v) of such Act (42 U.S.C. 
                405(j)(2)(C)(v)) is amended by striking ``entitled to 
                benefits'' and all that follows through ``under a 
                disability'' and inserting ``described in paragraph 
                (1)(B)''.
                    (C) Section 205(j)(2)(D)(i)(II) of such Act (42 
                U.S.C. 405(j)(2)(D)(i)(II)) is amended by striking all 
                that follows ``15 years, or'' and inserting ``described 
                in paragraph (1)(B).''.
                    (D) Section 205(j)(4)(A)(i)(II) (42 U.S.C. 
                405(j)(4)(A)(i)(II)) is amended by striking ``entitled 
                to benefits'' and all that follows through ``under a 
                disability'' and inserting ``described in paragraph 
                (1)(B)''.
            (3) Treatment referrals for individuals with an alcoholism 
        or drug addiction condition.--Section 222 of such Act (42 
        U.S.C. 422) is amended by adding at the end the following new 
        subsection:

   ``Treatment Referrals for Individuals With an Alcoholism or Drug 
                          Addiction Condition

    ``(e) In the case of any individual whose benefits under this title 
are paid to a representative payee pursuant to section 205(j)(1)(B), 
the Commissioner of Social Security shall refer such individual to the 
appropriate State agency administering the State plan for substance 
abuse treatment services approved under subpart II of part B of title 
XIX of the Public Health Service Act (42 U.S.C. 300x-21 et seq.).''.
            (4) Conforming amendment.--Subsection (c) of section 225 of 
        such Act (42 U.S.C. 425(c)) is repealed.
            (5) Effective dates.--
                    (A) The amendments made by paragraphs (1) and (4) 
                shall apply--
                            (i) in the case of individuals who are 
                        entitled to monthly insurance benefits under 
                        title II of the Social Security Act based on 
                        disability for the month in which this Act is 
                        enacted, with respect to such benefits for 
                        months beginning on or after January 1, 1997, 
                        and
                            (ii) in any other case, with respect to 
                        benefits for which applications are filed on or 
                        after the date of the enactment of this Act.
                    (B) The amendments made by paragraphs (2) and (3) 
                shall apply with respect to benefits for which 
                applications are filed on or after the date of the 
                enactment of this Act.
                    (C) If an individual who is entitled to monthly 
                insurance benefits under title II of the Social 
                Security Act based on disability for the month in which 
                this Act is enacted and whose entitlement to such 
                benefits would terminate by reason of the amendments 
                made by this subsection reapplies for benefits under 
                title II of such Act (as amended by this Act) based on 
                disability within 120 days after the date of the 
                enactment of this Act, the Commissioner of Social 
                Security shall, not later than January 1, 1997, 
                complete the entitlement redetermination with respect 
                to such individual pursuant to the procedures of such 
                title.
    (b) Amendments Relating to SSI Benefits.--
            (1) In general.--Section 1614(a)(3) of the Social Security 
        Act (42 U.S.C. 1382c(a)(3)) is amended by adding at the end the 
        following:
    ``(I) Notwithstanding subparagraph (A), an individual shall not be 
considered to be disabled for purposes of this title if alcoholism or 
drug addiction would (but for this subparagraph) be a contributing 
factor material to the Commissioner's determination that the individual 
is disabled.''.
            (2) Representative payee requirements.--
                    (A) Section 1631(a)(2)(A)(ii)(II) of such Act (42 
                U.S.C. 1383(a)(2)(A)(ii)(II)) is amended to read as 
                follows:
    ``(II) In the case of an individual eligible for benefits under 
this title by reason of disability, the payment of such benefits shall 
be made to a representative payee if the Commissioner of Social 
Security determines that such payment would serve the interest of the 
individual because the individual also has an alcoholism or drug 
addiction condition (as determined by the Commissioner) that prevents 
the individual from managing such benefits.''.
                    (B) Section 1631(a)(2)(B)(vii) of such Act (42 
                U.S.C. 1383(a)(2)(B)(vii)) is amended by striking 
                ``eligible for benefits'' and all that follows through 
                ``is disabled'' and inserting ``described in 
                subparagraph (A)(ii)(II)''.
                    (C) Section 1631(a)(2)(B)(ix)(II) of such Act (42 
                U.S.C. 1383(a)(2)(B)(ix)(II)) is amended by striking 
                all that follows ``15 years, or'' and inserting 
                ``described in subparagraph (A)(ii)(II).''.
                    (D) Section 1631(a)(2)(D)(i)(II) of such Act (42 
                U.S.C. 1383(a)(2)(D)(i)(II)) is amended by striking 
                ``eligible for benefits'' and all that follows through 
                ``is disabled'' and inserting ``described in 
                subparagraph (A)(ii)(II)''.
            (3) Treatment services for individuals with a substance 
        abuse condition.--Title XVI of such Act (42 U.S.C. 1381 et 
        seq.) is amended by adding at the end the following new 
        section:

 ``treatment services for individuals with a substance abuse condition

    ``Sec. 1636. In the case of any individual whose benefits under 
this title are paid to a representative payee pursuant to section 
1631(a)(2)(A)(ii)(II), the Commissioner of Social Security shall refer 
such individual to the appropriate State agency administering the State 
plan for substance abuse treatment services approved under subpart II 
of part B of title XIX of the Public Health Service Act (42 U.S.C. 
300x-21 et seq.).''.
            (4) Conforming amendments.--
                    (A) Section 1611(e) of such Act (42 U.S.C. 1382(e)) 
                is amended by striking paragraph (3).
                    (B) Section 1634 of such Act (42 U.S.C. 1383c) is 
                amended by striking subsection (e).
            (5) Effective dates.--
                    (A) The amendments made by paragraphs (1) and (4) 
                shall apply--
                            (i) in the case of individuals who are 
                        eligible for supplemental security income 
                        benefits under title XVI of the Social Security 
                        Act based on disability for the month in which 
                        this Act is enacted, with respect to such 
                        benefits for months beginning on or after 
                        January 1, 1997, and
                            (ii) in any other case, with respect to 
                        benefits for which applications are filed on or 
                        after the date of the enactment of this Act.
                    (B) The amendments made by paragraphs (2) and (3) 
                shall apply with respect to supplemental security 
                income benefits under title XVI of the Social Security 
                Act for which applications are filed on or after the 
                date of the enactment of this Act.
                    (C) If an individual who is eligible for 
                supplemental security income benefits under title XVI 
                of the Social Security Act for the month in which this 
                Act is enacted and whose eligibility for such benefits 
                would terminate by reason of the amendments made by 
                this subsection reapplies for supplemental security 
                income benefits under title XVI of such Act (as amended 
                by this Act) within 120 days after the date of the 
                enactment of this Act, the Commissioner of Social 
                Security shall, not later than January 1, 1997, 
                complete the eligibility redetermination with respect 
                to such individual pursuant to the procedures of such 
                title.
                    (D) For purposes of this paragraph, the phrase 
                ``supplemental security income benefits under title XVI 
                of the Social Security Act'' includes supplementary 
                payments pursuant to an agreement for Federal 
                administration under section 1616(a) of the Social 
                Security Act and payments pursuant to an agreement 
                entered into under section 212(b) of Public Law 93-66.
    (c) Conforming Amendment.--Section 201(c) of the Social Security 
Independence and Program Improvements Act of 1994 (42 U.S.C. 425 note) 
is repealed.
    (d) Supplemental Funding for Alcohol and Substance Abuse Treatment 
Programs.--
            (1) In general.--Out of any money in the Treasury not 
        otherwise appropriated, there are hereby appropriated to 
        supplement State and Tribal programs funded under section 1933 
        of the Public Health Service Act (42 U.S.C. 300x-33), 
        $100,000,000 for each of the fiscal years 1997 and 1998.
            (2) Additional funds.--Amounts appropriated under paragraph 
        (1) shall be in addition to any funds otherwise appropriated 
        for allotments under section 1933 of the Public Health Service 
        Act (42 U.S.C. 300x-33) and shall be allocated pursuant to such 
        section 1933.
            (3) Use of Funds.--A State or Tribal government receiving 
        an allotment under this subsection shall consider as 
        priorities, for purposes of expending funds allotted under this 
        subsection, activities relating to the treatment of the abuse 
        of alcohol and other drugs.

SEC. 8. REVOCATION BY MEMBERS OF THE CLERGY OF EXEMPTION FROM SOCIAL 
              SECURITY COVERAGE.

    (a) In General.--Notwithstanding section 1402(e)(3) of the Internal 
Revenue Code of 1986, any exemption which has been received under 
section 1402(e)(1) of such Code by a duly ordained, commissioned, or 
licensed minister of a church, a member of a religious order, or a 
Christian Science practitioner, and which is effective for the taxable 
year in which this Act is enacted, may be revoked by filing an 
application therefor (in such form and manner, and with such official, 
as may be prescribed in regulations made under chapter 2 of such Code), 
if such application is filed no later than the due date of the Federal 
income tax return (including any extension thereof) for the applicant's 
second taxable year beginning after December 31, 1995. Any such 
revocation shall be effective (for purposes of chapter 2 of the 
Internal Revenue Code of 1986 and title II of the Social Security Act), 
as specified in the application, either with respect to the applicant's 
first taxable year beginning after December 31, 1995, or with respect 
to the applicant's second taxable year beginning after such date, and 
for all succeeding taxable years; and the applicant for any such 
revocation may not thereafter again file application for an exemption 
under such section 1402(e)(1). If the application is filed after the 
due date of the applicant's Federal income tax return for a taxable 
year and is effective with respect to that taxable year, it shall 
include or be accompanied by payment in full of an amount equal to the 
total of the taxes that would have been imposed by section 1401 of the 
Internal Revenue Code of 1986 with respect to all of the applicant's 
income derived in that taxable year which would have constituted net 
earnings from self-employment for purposes of chapter 2 of such Code 
(notwithstanding section 1402 (c)(4) or (c)(5) of such Code) except for 
the exemption under section 1402(e)(1) of such Code.
    (b) Effective Date.--Subsection (a) shall apply with respect to 
service performed (to the extent specified in such subsection) in 
taxable years beginning after December 31, 1995, and with respect to 
monthly insurance benefits payable under title II of the Social 
Security Act on the basis of the wages and self-employment income of 
any individual for months in or after the calendar year in which such 
individual's application for revocation (as described in such 
subsection) is effective (and lump-sum death payments payable under 
such title on the basis of such wages and self-employment income in the 
case of deaths occurring in or after such calendar year).
S 1432 PCS----2
S 1432 PCS----3