[Congressional Record Volume 140, Number 61 (Tuesday, May 17, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[Congressional Record: May 17, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
           SOCIAL SECURITY ADMINISTRATIVE REFORM ACT OF 1994

  Mr. ROSTENKOWSKI. Mr. Speaker, I move to suspend the rules and pass 
the bill (H.R. 4277) to establish the Social Security Administration as 
an independent agency and to make other improvements in the old-age, 
survivors, and disability insurance program, as amended.
  The Clerk read as follows:

                               H.R. 4277

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Social 
     Security Administrative Reform Act of 1994''.
       (b) Table of Contents.--

Sec. 1. Short title and table of contents.
Sec. 2. Declaration of purposes.

  TITLE I--ESTABLISHMENT OF THE SOCIAL SECURITY ADMINISTRATION AS AN 
                           INDEPENDENT AGENCY

Sec. 101. Establishment of the Social Security Administration as a 
              separate, independent agency; responsibilities of the 
              agency.
Sec. 102. Social Security Board, executive director, deputy director, 
              beneficiary ombudsman; other officers.
Sec. 103. Personnel; budgetary matters; seal of office.
Sec. 104. Transfers to the new Social Security Administration.
Sec. 105. Transitional rules.
Sec. 106. Conforming amendments to Titles II and XVI of the Social 
              Security Act.
Sec. 107. Other conforming amendments.
Sec. 108. Rules of construction.
Sec. 109. Effective dates.

   TITLE II--IMPROVEMENTS TO THE OLD-AGE, SURVIVORS, AND DISABILITY 
                           INSURANCE PROGRAM

Sec. 201. Restrictions on payment of benefits based on disability to 
              substance abusers.
Sec. 202. Issuance of physical documents in the form of bonds, notes, 
              or certificates to the social security trust funds.
Sec. 203. Explicit requirements for maintenance of telephone access to 
              local offices of the Social Security Administration.
Sec. 204. Expansion of State option to exclude service of election 
              officials or election workers from coverage.
Sec. 205. Use of social security numbers by States and local 
              governments and Federal district courts for jury 
              selection purposes.
Sec. 206. Authorization for all States to extend coverage to State and 
              local policemen and firemen under existing coverage 
              agreements.
Sec. 207. Limited exemption for Canadian ministers from certain self-
              employment tax liability.
Sec. 208. Exclusion of totalization benefits from the application of 
              the windfall elimination provision.
Sec. 209. Exclusion of military reservists from application of the 
              government pension offset and windfall elimination 
              provisions.
Sec. 210. Repeal of the facility-of-payment provision.
Sec. 211. Maximum family benefits in guarantee cases.
Sec. 212. Authorization for disclosure by the Secretary of Health and 
              Human Services of information for purposes of public or 
              private epidemiological and similar research.
Sec. 213. Misuse of symbols, emblems, or names in reference to social 
              security programs and agencies.
Sec. 214. Increased penalties for unauthorized disclosure of social 
              security information.
Sec. 215. Increase in authorized period for extension of time to file 
              annual earnings report.
Sec. 216. Extension of disability insurance program demonstration 
              project authority.
Sec. 217. Cross-matching of social security account number information 
              and employer identification number information maintained 
              by the Department of Agriculture.
Sec. 218. Certain transfers to railroad retirement account made 
              permanent.
Sec. 219. Authorization for use of social security account numbers by 
              department of labor in administration of Federal workers' 
              compensation laws.
Sec. 220. Coverage under FICA of Federal employees transferred 
              temporarily to international organizations.
Sec. 221. Extension of the FICA tax exemption and certain tax rules to 
              individuals who enter the United States under a visa 
              issued under section 101 of the Immigration and 
              Nationality Act.
Sec. 222. Study of rising costs of disability insurance benefits.
Sec. 223. Commission on childhood disability.
Sec. 224. Disregard deemed income and resources of ineligible spouse in 
              determining continued eligibility under section 1619(b).
Sec. 225. Plans for achieving self-support not disapproved within 60 
              days to be deemed approved.
Sec. 226. Temporary authority to approve a limited number of plans for 
              achieving self-support that include housing goals.
Sec. 227. Regulations regarding completion of plans for achieving self-
              support.
Sec. 228. Treatment of certain grant, scholarship, or fellowship income 
              as earned income for SSI purposes.
Sec. 229. SSI eligibility for students temporarily abroad.
Sec. 230. Disregard of cost-of-living increases for continued 
              eligibility for work incentives.
Sec. 231. Expansion of the authority of the Social Security 
              Administration to prevent, detect, and terminate 
              fraudulent claims for SSI benefits.
Sec. 232. Disability review required for SSI recipients who are 18 
              years of age.
Sec. 233. Continuing disability reviews.
Sec. 234. Technical and clerical amendments.

     SEC. 2. DECLARATION OF PURPOSES.

       The purposes of this Act are as follows:
       (1) To establish the Social Security Administration as an 
     independent agency, separate from the Department of Health 
     and Human Services.
       (2) To charge the Social Security Administration with 
     administration of the old-age, survivors, and disability 
     insurance program and supplemental security income program.
       (3) To establish a Social Security board as head of the 
     Social Security Administration and define the powers and 
     duties of such Board.
       (4) To establish an Executive Director of the 
     Administration and define the powers and duties of the 
     Executive Director.
       (5) To provide for delegating major authorities to the 
     Board and the Executive Director.
       (6) To make other improvements in the old-age, survivors, 
     and disability insurance program under title II of the Social 
     Security Act.
  TITLE I--ESTABLISHMENT OF THE SOCIAL SECURITY ADMINISTRATION AS AN 
                           INDEPENDENT AGENCY

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

       Section 701 of the Social Security Act (42 U.S.C. 901) is 
     amended to read as follows:


                    ``Social Security Administration

       ``Sec. 701. There is hereby established, as an independent 
     agency in the executive branch of the Government, a Social 
     Security Administration. It shall be the duty of the 
     Administration to administer the old-age, survivors, and 
     disability insurance program under title II and the 
     supplemental security income program under title XVI.''.

     SEC. 102. SOCIAL SECURITY BOARD, EXECUTIVE DIRECTOR, DEPUTY 
                   DIRECTOR, BENEFICIARY OMBUDSMAN; OTHER 
                   OFFICERS.

       (a) In General.--Section 702 of the Social Security Act (42 
     U.S.C. 902) is amended to read as follows:


      ``SOCIAL SECURITY BOARD; EXECUTIVE DIRECTOR; OTHER OFFICERS

                        ``Social Security Board

       ``Sec. 702. (a)(1)(A) The Administration shall be governed 
     by a Social Security Board. The Board shall be composed of 
     three members appointed by the President, by and with the 
     advice and consent of the Senate. The members shall be chosen 
     on the basis of their integrity, impartiality, and good 
     judgment, and shall be individuals who are, by reason of 
     their education, experience, and attainments, exceptionally 
     qualified to perform the duties of members of the Board.
       ``(B)(i) Except as provided in clauses (ii) and (iii), 
     members of the Board shall be appointed for terms of six 
     years. A member of the Board may be removed only pursuant to 
     a finding by the President of neglect of duty or malfeasance 
     in office. The President shall transmit any such finding to 
     the Speaker of the House of Representatives and the majority 
     leader of the Senate not later than five days after the date 
     on which such finding is made.
       ``(ii) Of the members first appointed--
       ``(I) one shall be appointed for a term of 2 years,
       ``(II) one shall be appointed for a term of 4 years, and
       ``(III) one shall be appointed for a term of 6 years,

     as designated by the President at the time of appointment. 
     Such members shall be appointed after active consideration of 
     recommendations made by the chairman of the Committee on Ways 
     and Means of the House of Representatives and of 
     recommendations made by the chairman of the Committee on 
     Finance of the Senate.
       ``(iii) The President may not nominate an individual for 
     appointment to a term of office as member of the Board before 
     the commencement of the President's term of office in which 
     the member's term of office commences. Any member appointed 
     to a term of office after the commencement of such term may 
     serve under such appointment only for the remainder of such 
     term. A member may, at the request of the President, serve 
     for not more than one year after the expiration of his or her 
     term until his or her successor has taken office. A member of 
     the Board may be appointed for additional terms.
       ``(C) Not more than two members of the Board shall be of 
     the same political party.
       ``(D) A member of the Board may not, during his or her term 
     as member, engage in any other business, vocation, 
     profession, or employment. A member of the Board may continue 
     as a member of the Board for not longer than the 30-day 
     period beginning on the date such member first fails to meet 
     the requirements of the preceding sentence.
       ``(E) Two members of the Board shall constitute a quorum, 
     except that one member may hold hearings.
       ``(F) A member of the Board shall be designated by the 
     President to serve as Chairperson of the Board for a term of 
     4 years.
       ``(G) The Board shall meet at the call of the Chairperson 
     or two members of the Board.
       ``(2) Each member of the Board shall be compensated at the 
     rate provided for level II of the Executive Schedule.
       ``(3) The Board shall--
       ``(A) govern by regulation the old-age, survivors, and 
     disability insurance program under title II and the 
     supplemental security income program under title XVI,
       ``(B) establish the Administration and oversee its 
     efficient and effective operation,
       ``(C) establish policy and devise long-term plans to 
     promote and maintain the effective implementation of programs 
     referred to in subparagraph (A),
       ``(D) appoint an Executive Director of the Administration, 
     as described in subsection (b), to act as the chief operating 
     officer of the Administration responsible for administering 
     the programs referred to in subparagraph (A),
       ``(E) constitute three of the members of the Board of 
     Trustees of the Federal Old-Age and Survivors Insurance Trust 
     Fund and the Federal Disability Insurance Trust Fund, with 
     the Chairperson of the Social Security Board serving as 
     Chairperson of such Board of Trustees,
       ``(F) prepare an annual budget for the Administration, 
     which shall be submitted by the President to the Congress 
     without revision, together with the President's annual budget 
     for the Administration,
       ``(G) study and make recommendations to the Congress and 
     the President as to the most effective methods of providing 
     economic security through social insurance, supplemental 
     security income, and related programs and as to legislation 
     and matters of administrative policy concerning the programs 
     referred to in subparagraph (A),
       ``(H) provide the Congress and the President with the 
     ongoing actuarial and other analysis undertaken by the 
     Administration with respect to the programs referred to in 
     subparagraph (A) and any other information relating to such 
     programs, and
       ``(I) conduct policy analysis and research relating to the 
     programs referred to in subparagraph (A).
       ``(4)(A) The Board may prescribe such rules and regulations 
     as the Board determines necessary or appropriate to carry out 
     the functions of the Administration. The regulations 
     prescribed by the Board shall be subject to the rulemaking 
     procedures established under section 553 of title 5, United 
     States Code.
       ``(B) The Board may establish, alter, consolidate, or 
     discontinue such organizational units or components within 
     the Administration as the Board considers necessary or 
     appropriate to carry out its functions, except that this 
     subparagraph shall not apply with respect to any unit, 
     component, or position provided for by this Act.
       ``(C) The Board may, with respect to the administration of 
     the old-age, survivors, and disability insurance program 
     under title II and the supplemental security income program 
     under title XVI, assign duties, and delegate, or authorize 
     successive redelegations of, authority to act and to render 
     decisions, to such officers and employees as the Board may 
     find necessary. Within the limitations of such delegations, 
     redelegations, or assignments, all official acts and 
     decisions of such officers and employees shall have the same 
     force and effect as though performed or rendered by the 
     Board.

                          ``Executive Director

       ``(b)(1) There shall be in the Administration an Executive 
     Director who shall be appointed by the Social Security Board.
       ``(2)(A) The Executive Director shall be appointed for a 
     term of four years. An individual appointed to a term of 
     office as Executive Director after the commencement of such 
     term of office may serve under such appointment only for the 
     remainder of such term. An individual may, at the request of 
     the Chairperson of the Board, serve as Executive Director 
     after the expiration of his or her term for not more than one 
     year until his or her successor has taken office. An 
     individual may be appointed as Executive Director for 
     additional terms.
       ``(B) An individual may be removed from the office of 
     Executive Director before completion of his or her term only 
     for cause found by the Board.
       ``(3) The Executive Director shall be compensated at the 
     rate provided for level II of the Executive Schedule.
       ``(4) The Executive Director shall--
       ``(A) constitute the chief operating officer of the 
     Administration, responsible for administering, in accordance 
     with applicable statutes and regulations, the old-age, 
     survivors, and disability insurance program under title II 
     and the supplemental security income program under title XVI,
       ``(B) maintain an efficient and effective operational 
     structure for the Administration,
       ``(C) implement the long-term plans of the Board to promote 
     and maintain the effective implementation of such programs,
       ``(D) report annually to the Board on program costs under 
     titles II and XVI, make annual budgetary recommendations to 
     the Board for the ongoing administrative costs of the 
     Administration under this Act, and defend the recommendations 
     before the Board,
       ``(E) advise the Board and the Congress on the effect on 
     the administration of such programs of proposed legislative 
     changes in such programs,
       ``(F) serve as Secretary of the Board of Trustees of the 
     Federal Old-Age and Survivors Insurance Trust Fund and the 
     Federal Disability Insurance Trust Fund,
       ``(G) report in December of each year to the Board for 
     transmittal to the Congress concerning the administrative 
     endeavors and accomplishments of the Administration, and
       ``(H) carry out such additional duties as are assigned by 
     the Board from time to time.

     Any reference to the Board in this Act or any other provision 
     of law in connection with the exercise of a function of the 
     Board which is delegated to the Executive Director pursuant 
     to this section shall be considered a reference to the 
     Executive Director.

                  ``Deputy Director of Social Security

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

                           ``General Counsel

       ``(d)(1) There shall be in the Administration a General 
     Counsel, who shall be appointed by and serve at the pleasure 
     of the Board. The General Counsel shall be the principal 
     legal officer in the Administration.
       ``(2) The General Counsel shall be compensated at the rate 
     provided for level IV of the Executive Schedule.

                          ``Inspector General

       ``(e)(1) There shall be in the Administration an Office of 
     the Inspector General. Such Office shall be headed by an 
     Inspector General appointed in accordance with the Inspector 
     General Act of 1978.
       ``(2) The Inspector General shall be compensated at the 
     rate provided for level IV of the Executive Schedule.

                        ``Beneficiary Ombudsman

       ``(f)(1) There shall be in the Administration an Office of 
     the Beneficiary Ombudsman, to be headed by a Beneficiary 
     Ombudsman appointed by the Board.
       ``(2)(A) The Beneficiary Ombudsman shall be appointed for a 
     term of five years, except that the individual first 
     appointed to the Office of Beneficiary Ombudsman shall be 
     appointed for a term ending September 30, 2000. An individual 
     appointed to a term of office as Beneficiary Ombudsman after 
     the commencement of such term may serve under such 
     appointment only for the remainder of such term. An 
     individual may, at the request of the Chairperson of the 
     Board, serve as Beneficiary Ombudsman after the expiration of 
     his or her term for not more than one year until his or her 
     successor has taken office. An individual may be appointed as 
     Beneficiary Ombudsman for additional terms.
       ``(B) An individual may be removed from the office of 
     Beneficiary Ombudsman before completion of his or her term 
     only for cause found by the Board.
       ``(3) The Beneficiary Ombudsman shall be compensated at the 
     rate provided for level V of the Executive Schedule.
       ``(4) The duties of the Beneficiary Ombudsman are as 
     follows:
       ``(A) To represent within the Administration's 
     decisionmaking process the interests and concerns of 
     beneficiaries under the old-age, survivors, and disability 
     insurance program under title II and the supplemental 
     security income program under title XVI.
       ``(B) To review the Administration's policies and 
     procedures for possible adverse effects on such 
     beneficiaries.
       ``(C) To recommend within the Administration's 
     decisionmaking process changes in policies which have caused 
     problems for such beneficiaries.
       ``(D) To help resolve the problems under such programs of 
     individual beneficiaries in unusual or difficult 
     circumstances, as determined by the Administration.
       ``(E) To represent within the Administration's 
     decisionmaking process the views of beneficiaries in the 
     design of forms and the issuance of instructions.
       ``(5) The Board shall assure that the Office of the 
     Beneficiary Ombudsman has staff sufficient to enable the 
     Beneficiary Ombudsman to efficiently carry out his or her 
     duties. Such staff shall be located in the regional offices, 
     program centers, and central office of the Administration.
       ``(6) The annual report of the Board under section 704 
     shall include a description of the activities of the 
     Beneficiary Ombudsman.

                       ``Administrative Law Judge

       ``(g)(1) There shall be in the Administration an Office of 
     the Chief Administrative Law Judge, who shall be appointed by 
     the Board. The duty of the Chief Administrative Law Judge 
     shall be to administer the affairs of the administrative law 
     judges serving in the Administration in a manner so as to 
     ensure that hearings and other business are conducted by the 
     administrative law judges in accordance with applicable law 
     and regulations.
       ``(2) The Chief Administrative Law Judge shall report 
     directly to the Board.''.
       (b) Conforming Amendments Relating to Composition of Board 
     of Trustees of OASDI Trust Funds.--Section 201(c) of such Act 
     (42 U.S.C. 401(c)) is amended--
       (1) in the first sentence, by striking ``shall be composed 
     of'' and all that follows down through ``ex officio'' and 
     inserting the following: ``shall be composed of the members 
     of the Social Security Board, the Secretary of the Treasury, 
     the Secretary of Health and Human Services, all ex officio'';
       (2) by inserting after the first sentence the following new 
     sentence: ``The Chairperson of the Social Security Board 
     shall be the Chairperson of the Board of Trustees.''; and
       (3) by striking ``Commissioner of Social Security'' and 
     inserting ``Executive Director of the Social Security 
     Administration''.
       (c) Interim Authority of the Commissioner.--The President 
     shall nominate for appointment the initial members of the 
     Social Security Board not later than April 1, 1995. In the 
     event that, as of October 1, 1995, all members of the Social 
     Security Board have not entered upon office, until all 
     members of the Board have entered upon office, the officer 
     serving on October 1, 1995, as Commissioner of Social 
     Security in the Department of Health and Human Services (or 
     Acting Commissioner, if applicable), or such officer's 
     successor, shall, while continuing to serve as Commissioner 
     of Social Security (or Acting Commissioner) in such 
     Department, serve as head of the Social Security 
     Administration established under section 701 of the Social 
     Security Act (as amended by this Act) and shall assume the 
     powers and duties of such Board and of the Executive Director 
     under such Act (as amended by this Act).

     SEC. 103. PERSONNEL; BUDGETARY MATTERS; SEAL OF OFFICE.

       Section 703 of the Social Security Act (42 U.S.C. 903) is 
     amended to read as follows:


          ``administrative duties of the social security board

                              ``Personnel

       ``Sec. 703. (a)(1) The Social Security Board shall appoint 
     such additional officers and employees as it considers 
     necessary to carry out its functions. Except as otherwise 
     provided in any other provision of law, such officers and 
     employees shall be appointed, and their compensation shall be 
     fixed, in accordance with title 5, United States Code.
       ``(2) The Board may procure the services of experts and 
     consultants in accordance with the provisions of section 3109 
     of title 5, United States Code.
       ``(3) The Director of the Office of Personnel Management 
     shall authorize for the Administration a total number of 
     Senior Executive Service positions which is greater than the 
     number of such positions authorized in the Social Security 
     Administration in the Department of Health and Human Services 
     as of immediately before the date of the enactment of the 
     Social Security Administrative Reform Act of 1994, to the 
     extent that the greater number of such authorized positions 
     is specified in the comprehensive workforce plan as 
     established and revised by the Board under subsection (b)(1). 
     The total number of such positions authorized for the 
     Administration pursuant to such section 3133 shall not at any 
     time be less than the number of such authorized positions as 
     of immediately before such date.
       ``(4) In addition to the positions of the Administration in 
     the Executive Schedule specified in section 702, the 
     Administration is authorized six additional positions at 
     level IV of the Executive Schedule and six additional 
     positions at level V of the Executive Schedule.

                          ``Budgetary Matters

       ``(b) Appropriations requests for staffing and personnel of 
     the Administration shall be based upon a comprehensive 
     workforce plan, which shall be established and revised from 
     time to time by the Board.

                            ``Seal of Office

       ``(c) The Board shall cause a seal of office to be made for 
     the Administration of such design as the Board shall approve. 
     Judicial notice shall be taken of such seal.''.

     SEC. 104. TRANSFERS TO THE NEW SOCIAL SECURITY 
                   ADMINISTRATION.

       (a) Functions.--There are transferred to the Social 
     Security Administration all functions carried out by the 
     Secretary of Health and Human Services with respect to the 
     programs and activities the administration of which is vested 
     in the Social Security Administration by reason of this Act 
     and the amendments made thereby. The Social Security Board 
     shall allocate such functions in accordance with sections 
     701, 702, and 703 of the Social Security Act (as amended by 
     this Act).
       (b) Personnel, Assets, Etc.--(1) There are transferred from 
     the Department of Health and Human Services to the Social 
     Security Administration, for appropriate allocation by the 
     Social Security Board in the Social Security Administration--
       (A) the personnel (other than administrative law judges) 
     employed in connection with the functions transferred by this 
     Act and the amendments made thereby, as considered 
     appropriate by the Board in consultation with the Secretary 
     of Health and Human Services,
       (B) such number of administrative law judges as are 
     necessary to carry out the functions transferred by this Act 
     and the amendments made thereby, as determined by the Board 
     in consultation with the Secretary of Health and Human 
     Services, and
       (C) the assets, liabilities, contracts, property, records, 
     and unexpended balance of appropriations, authorizations, 
     allocations, and other funds employed, held, or used in 
     connection with such functions, arising from such functions, 
     or available, or to be made available, in connection with 
     such functions.
       (2) Unexpended funds transferred pursuant to this 
     subsection shall be used only for the purposes for which the 
     funds were originally authorized and appropriated.
       (3) The Secretary of Health and Human Services shall 
     terminate--
       (A) six positions in the Department of Health and Human 
     Services placed in level IV of the Executive Schedule (or 
     equivalent positions) other than positions specifically 
     required under section 5315 of title 5, United States Code, 
     or any other provision of law, and
       (B) six positions in such Department placed in level V of 
     the Executive Schedule (or equivalent positions) other than 
     positions specifically required under section 5316 of such 
     title or any other provision of law.
       (4) The transfer pursuant to this section of full-time 
     personnel (except special Government employees) and part-time 
     personnel holding permanent positions shall not cause any 
     such employees to be separated or reduced in grade or 
     compensation for 1 year after such transfer or October 1, 
     1995, whichever is later.
       (c) Abolishment of Office of Commissioner in the Department 
     of Health and Human Services.--Effective upon the entry upon 
     office of all initial members of the Social Security Board 
     pursuant to section 702 of the Social Security Act (as 
     amended by this Act), the position of Commissioner of Social 
     Security in the Department of Health and Human Services is 
     abolished.

     SEC. 105. TRANSITIONAL RULES.

       (a) Interim Authority for Appointment and Compensation.--At 
     any time on or after the date of the enactment of this Act--
       (1) any of the officers provided for in section 702 of the 
     Social Security Act (as amended by this Act) may enter upon 
     office, as provided in such section, and
       (2) the Social Security Board, upon entry upon office of 
     all of the members thereof, may prescribe regulations 
     providing for the orderly transfer of proceedings before the 
     Secretary of Health and Human Services to the Social Security 
     Board.

     Funds available to any official or component of the 
     Department of Health and Human Services, functions of which 
     are transferred to the Social Security Board or the Social 
     Security Administration by this Act, may be used, with the 
     approval of the Director of the Office of Management and 
     Budget, to pay the compensation and expenses of any officer 
     entering upon office pursuant to this section until such time 
     as funds for that purpose are otherwise available.
       (b) Continuation of Orders, Determinations, Rules, 
     Regulations, Etc.--All orders, determinations, rules, 
     regulations, permits, contracts, collective bargaining 
     agreements, recognitions of labor organizations, 
     certificates, licenses, and privileges--
       (1) which have been issued, made, promulgated, granted, or 
     allowed to become effective, in the exercise of functions (A) 
     which were exercised by the Secretary of Health and Human 
     Services (or his delegate), and (B) which relate to functions 
     which, by reason of this Act, the amendments made thereby, 
     and regulations prescribed thereunder, are vested in the 
     Social Security Board, and
       (2) which are in effect immediately before October 1, 1995,

     shall (to the extent that they relate to functions described 
     in paragraph (1)(B)) continue in effect according to their 
     terms until modified, terminated, suspended, set aside, or 
     repealed, in accordance with law, by such Board.
       (c) Continuation of Proceedings.--The provisions of this 
     Act (including the amendments made thereby) shall not affect 
     any proceeding pending before the Secretary of Health and 
     Human Services immediately before October 1, 1995, with 
     respect to functions vested (by reason of this Act, the 
     amendments made thereby, and regulations prescribed 
     thereunder) in the Social Security Board, except that such 
     proceedings, to the extent that they relate to such 
     functions, shall continue before such Board. Orders shall be 
     issued under any such proceeding, appeals taken therefrom, 
     and payments shall be made pursuant to such orders, in like 
     manner as if this Act had not been enacted, and orders issued 
     in any such proceeding shall continue in effect until 
     modified, terminated, superseded, or repealed by such Board, 
     by a court of competent jurisdiction, or by operation of law.
       (d) Continuation of Suits.--Except as provided in this 
     subsection--
       (1) the provisions of this Act shall not affect suits 
     commenced prior to October 1, 1995; and
       (2) in all such suits proceedings shall be had, appeals 
     taken, and judgments rendered, in the same manner and effect 
     as if this Act had not been enacted. No cause of action, and 
     no suit, action, or other proceeding commenced by or against 
     any officer in his official capacity as an officer of the 
     Department of Health and Human Services, shall abate by 
     reason of the enactment of this Act. Causes of action, suits, 
     actions, or other proceedings may be asserted by or against 
     the United States and the Social Security Administration, or 
     such official of such Administration as may be appropriate, 
     and, in any litigation pending immediately before October 1, 
     1995, the court may at any time, on its own motion or that of 
     a party, enter an order which will give effect to the 
     provisions of this subsection (including, where appropriate, 
     an order for substitution of parties).
       (e) Continuation of Penalties.--This Act shall not have the 
     effect of releasing or extinguishing any criminal 
     prosecution, penalty, forfeiture, or liability incurred as a 
     result of any function which (by reason of this Act), the 
     amendments made thereby, and regulations prescribed 
     thereunder) is vested in the Social Security Board.
       (f) Judicial Review.--Orders and actions of the Social 
     Security Board in the exercise of functions vested in such 
     Board under this Act (and the amendments made thereby) shall 
     be subject to judicial review to the same extent and in the 
     same manner as if such orders had been made and such actions 
     had been taken by the Secretary of Health and Human Services 
     in the exercise of such functions immediately before October 
     1, 1995. Any statutory requirements relating to notice, 
     hearings, action upon the record, or administrative review 
     that apply to any function so vested in such Board shall 
     continue to apply to the exercise of such function by such 
     Board.
       (g) Exercise of Functions.--In the exercise of the 
     functions vested in the Social Security Board under this Act, 
     the amendments made thereby, and regulations prescribed 
     thereunder, such Board shall have the same authority as that 
     vested in the Secretary of Health and Human Services with 
     respect to the exercise of such functions immediately 
     preceding the vesting of such functions in such Board, and 
     actions of such Board shall have the same force and effect as 
     when exercised by such Secretary.
       (h) Operation of Transitional Rules in the Event of Interim 
     Authority in the Commissioner.--For purposes of this section, 
     in any case in which the powers and duties to be transferred 
     to the Social Security Board are transferred to the 
     Commissioner of Social Security (or acting Commissioner) in 
     the Department of Health and Human Services for an interim 
     period pursuant to section 102(c), the preceding provisions 
     of this section shall apply with respect to the transfer of 
     such powers and duties to and from such Commissioner (or 
     acting Commissioner) pursuant to section 102(c) in the same 
     manner and to the same extent as they would have applied to a 
     direct transfer from the Secretary of Health and Human 
     Services to the Social Security Board if all members of the 
     Board had entered upon office.

     SEC. 106. CONFORMING AMENDMENTS TO TITLES II AND XVI OF THE 
                   SOCIAL SECURITY ACT.

       (a) In General.--Title II of the Social Security Act (other 
     than section 201, section 218(d), section 226, section 226A, 
     and section 231(c)) and title XVI of such Act are each 
     amended--
       (1) by striking, wherever it appears therein, ``Secretary 
     of Health and Human Services'' and inserting ``Social 
     Security Board'';
       (2) by striking, wherever it appears therein, ``Department 
     of Health and Human Services'' and inserting ``Social 
     Security Administration'';
       (3) by striking, wherever it appears therein, 
     ``Department'' (but only if it is not immediately succeeded 
     by the words ``of Health and Human Services'', and only if it 
     is used in reference to the Department of Health and Human 
     Services) and inserting ``Administration'';
       (4) by striking, wherever it appears therein, each of the 
     following words (but, in the case of any such word only if 
     such word refers to the Secretary of Health and Human 
     Services): ``Secretary'', ``Secretary's'', ``his'', ``him'', 
     and ``he'', and inserting (in the case of the word 
     ``Secretary'') ``Social Security Board'', (in the case of the 
     word ``Secretary's'') ``Board's'', (in the case of the word 
     ``his'') ``the Board's'', (in the case of the word ``him'') 
     ``the Board'', and (in the case of the word ``he'') ``the 
     Board''; and
       (5) by striking, wherever it appears therein, ``Internal 
     Revenue Code of 1954'' and inserting ``Internal Revenue Code 
     of 1986''.
       (b) Amendments to Section 218.--Section 218(d) of such Act 
     (42 U.S.C. 418(d)) is amended by striking ``Secretary'' each 
     place it appears in paragraphs (3) and (7) and inserting 
     ``Social Security Board''.
       (c) Amendments to Section 222.--Section 222(d) of such Act 
     (42 U.S.C. 422(d)) is amended--
       (1) in the last sentence of paragraph (1), by striking 
     ``Commissioner of Social Security'' and inserting ``Executive 
     Director of the Social Security Administration''; and
       (2) in the first sentence of paragraph (2), by striking 
     ``Commissioner of Social Security'' and inserting ``Executive 
     Director of the Social Security Administration''.
       (d) Amendment to Section 231.--Section 231(c) of such Act 
     (42 U.S.C. 431(c)) is amended by striking ``Secretary 
     determines'' and inserting ``Social Security Board and the 
     Secretary jointly determine''.
       (e) Amendment to Section 1615.--Section 1615(d) of such Act 
     (422 U.S.C. 1832d(d)) is amended by striking ``Commissioner 
     of Social Security'' and inserting ``Executive Director of 
     the Social Security Administration''.

     SEC. 107. OTHER CONFORMING AMENDMENTS.

       Title VII of the Social Security Act is amended--
       (1) by striking section 704 (42 U.S.C. 904) and inserting 
     the following new section:


                               ``reports

       ``Sec. 704. The Secretary and the Social Security Board 
     shall make full reports to Congress, within 120 days after 
     the beginning of each regular session, of the administration 
     of the functions with which they are charged under this Act. 
     In addition to the number of copies of such reports 
     authorized by other law to be printed, there is hereby 
     authorized to be printed not more than 5,000 copies of each 
     such report for use by the Secretary and Social Security 
     Board for distribution to Members of Congress and to State 
     and other public or private agencies or organizations 
     participating in or concerned with the programs provided for 
     in this Act.'';
       (2) in section 709(b)(2) (42 U.S.C. 910(b)(2)), by striking 
     ``(as estimated by the Secretary)'' and inserting ``, as 
     estimated by the Social Security Board or the Secretary 
     (whichever administers the program involved),''; and
       (3) by adding at the end thereof the following new section:


                  ``duties and authority of secretary

       ``Sec. 712. (a) The Secretary shall perform the duties 
     imposed upon him by this Act and shall also have the duty of 
     studying and making recommendations as to the most effective 
     methods of providing economic security and as to legislation 
     and matters of administrative policy concerning the programs 
     administered by the Secretary and related subjects; except 
     that nothing in this section shall be construed to require 
     the Secretary to make studies or recommendations with respect 
     to programs administered by the Social Security 
     Administration.
       ``(b) The Secretary is authorized to appoint and fix the 
     compensation of such officers and employees, and to make such 
     expenditures, as may be necessary for carrying out the 
     Secretary's functions under this Act. Appointments of 
     attorneys and experts may be made without regard to the civil 
     service laws.''.

     SEC. 108. RULES OF CONSTRUCTION.

       (a) References to the Department of Health and Human 
     Services.--Whenever any reference is made in any provision of 
     law (other than this Act or a provision of law amended by 
     this Act), regulation, rule, record, court order, or other 
     document to the Department of Health and Human Services with 
     respect to such Department's functions under the old-age, 
     survivors, and disability insurance program under title II of 
     the Social Security Act or the supplemental security income 
     program under title XVI of such Act, such reference shall be 
     considered a reference to the Social Security Administration.
       (b) References to the Secretary of Health and Human 
     Services.--Whenever any reference is made in any provision of 
     law (other than this Act or a provision of law amended by 
     this Act), regulation, rule, record, court order, or other 
     document to the Secretary of Health and Human Services with 
     respect to such Secretary's functions under such programs, 
     such reference shall be considered a reference to the Social 
     Security Board.
       (c) References to Other Officers and Employees.--Whenever 
     any reference is made in any provision of law (other than 
     this Act or a provision of law amended by this Act), 
     regulation, rule, record, or document to any other officer or 
     employee of the Department of Health and Human Services with 
     respect to such officer's or employee's functions under such 
     programs, such reference shall be considered a reference to 
     the appropriate officer or employee of the Social Security 
     Administration.

     SEC. 109. EFFECTIVE DATES.

       (a) In General.--Sections 101, 102(a), 103, 104, 106, 107, 
     and 108 of this Act (and the amendments made thereby) shall 
     take effect October 1, 1995.
       (b) Exceptions.--Section 102(b) of this Act shall take 
     effect upon the entry upon office of all initial members of 
     the Social Security Board. Sections 102(c) and 105 of this 
     Act shall take effect on the date of the enactment of this 
     Act.
       (c) New Spending Authority.--Any new spending authority 
     provided by this title shall be effective for any fiscal year 
     only to such extent or in such amounts as are provided in 
     advance in appropriation Acts.
   TITLE II--IMPROVEMENTS TO THE OLD-AGE, SURVIVORS, AND DISABILITY 
                           INSURANCE PROGRAM

     SEC. 201. RESTRICTIONS ON PAYMENT OF BENEFITS BASED ON 
                   DISABILITY TO SUBSTANCE ABUSERS.

       (a) Amendments Relating to Benefits Based on Disability 
     Under Title II of the Social Security Act.--
       (1) Required payment of benefits to representative 
     payees.--
       (A) In general.--Section 205(j)(1) of the Social Security 
     Act (42 U.S.C. 405(j)(1)) is amended--
       (i) by inserting after the first sentence the following new 
     sentence: ``In the case of an individual entitled to benefits 
     based on disability, if alcoholism or drug addiction is a 
     contributing factor material to the Secretary's determination 
     that the individual is under a disability, certification of 
     payment of such benefits to a representative payee shall be 
     deemed to serve the interest of such individual under this 
     title.''; and
       (ii) in the last sentence, by inserting ``, if the interest 
     of the individual under this title would be served thereby,'' 
     after ``alternative representative payee or''.
       (B) Effective date.--The amendments made by subparagraph 
     (A) shall apply with respect to benefits for months beginning 
     after 180 days after the date of the enactment of this Act.
       (C) Study regarding feasibility, cost, and equity of 
     requiring representative payees for all disability 
     beneficiaries suffering from alcoholism or drug addiction.--
       (i) Study.--As soon as practicable after the date of the 
     enactment of this Act, the Secretary of Health and Human 
     Services shall conduct a study of the representative payee 
     program. In such study, the Secretary shall examine--

       (I) the feasibility, cost, and equity of requiring 
     representative payees for all individuals entitled to 
     benefits based on disability under title II or XVI of the 
     Social Security Act who suffer from alcoholism or drug 
     addiction, irrespective of whether the alcoholism or drug 
     addiction was material in any case to the Secretary's 
     determination of disability,
       (II) the feasibility of and appropriate timetable for 
     providing benefits through non-cash means, including (but not 
     limited to) vouchers, debit cards, and electronic benefits 
     transfer systems,
       (III) the extent to which child beneficiaries are afflicted 
     by drug addition or alcoholism and ways of addressing such 
     affliction, including the feasibility of requiring treatment, 
     and
       (IV) the extent to which children's representative payees 
     are afflicted by drug addiction or alcoholism, and methods to 
     identify children's representative payees afflicted by drug 
     addition or alcoholism and to ensure that benefits continue 
     to be provided to beneficiaries appropriately.

       (ii) Report.--Not later than April 1, 1995, the Secretary 
     shall transmit to the Committee on Ways and Means of the 
     House of Representatives and the Committee on Finance of the 
     Senate a report setting forth the findings of the Secretary 
     based on such Study. Such report shall include such 
     recommendations for administrative or legislative changes as 
     the Secretary considers appropriate.
       (2) Increased reliance on professional representative 
     payees.--
       (A) Preference required for organizational representative 
     payees.--Section 205(j)(2)(C) of such Act (42 U.S.C. 
     405(j)(2)(C)) is amended by adding at the end the following 
     new clause:
       ``(v) In the case of an individual entitled to benefits 
     based on disability, if alcoholism or drug addiction is a 
     contributing factor material to the Secretary's determination 
     that the individual is under a disability, when selecting 
     such individual's representative payee, preference shall be 
     given to--
       ``(I) a community-based nonprofit social service agency 
     licensed or bonded by the State,
       ``(II) a State or local government agency whose mission is 
     to carry out income maintenance, social service, or health 
     care-related activities, or
       ``(III) a State or local government agency with fiduciary 
     responsibilities,

     (or a designee of such an agency if the Secretary deems it 
     appropriate), unless the Secretary determines that selection 
     of such an agency would not be appropriate.''.
       (B) Availability of public agencies and other qualified 
     organizations to serve as representative payees.--Section 
     205(j)(4) of such Act (42 U.S.C. 405(j)(4)) is amended--
       (i) in subparagraph (A)--

       (I) by striking ``exceed the lesser of--'' and inserting 
     ``exceed--''; and
       (II) by striking clauses (i) and (ii) and inserting the 
     following:

       ``(i) in any case in which an individual is entitled to 
     benefits based on disability and alcoholism or drug addiction 
     is a contributing factor material to the Secretary's 
     determination that the individual is under a disability, 10 
     percent of the monthly benefit involved, or
       ``(ii) in any other case, the lesser of--

       ``(I) 10 percent of the monthly benefit involved, or
       ``(II) $25.00 per month.'';

       (ii) in subparagraph (B)--

       (I) by inserting ``State or local government agency whose 
     mission is to carry out income maintenance, social service, 
     or health care-related activities, any State or local 
     government agency with fiduciary responsibilities, or any'' 
     after ``means any'';
       (II) by striking ``representative payee and which,'' and 
     inserting ``representative payee, if such agency,'';
       (III) by striking ``, and'' at the end of clause (ii) and 
     inserting a period; and
       (IV) by striking clause (iii); and

       (iii) by striking subparagraph (D), effective July 1, 1994.
       (C) Definition.--Section 205(j) of such Act (42 U.S.C. 
     405(j)) is amended by adding at the end the following new 
     paragraph:
       ``(7) For purposes of this subsection, the term `benefit 
     based on disability' of an individual means a disability 
     insurance benefit of such individual under section 223 or a 
     child's, widow's, or widower's insurance benefit of such 
     individual under section 202 based on such individual's 
     disability.''.
       (3) Nonpayment or termination of benefits.--
       (A) In general.--Section 225 of such Act (42 U.S.C. 425) is 
     amended--
       (i) by striking the heading and inserting the following:


      ``additional rules relating to benefits based on disability

                      ``Suspension of Benefits'';

       (ii) by inserting before subsection (b) the following new 
     heading:

         ``Continued Payments During Rehabilitation Program'';

     and
       (iii) by adding at the end the following new subsection:

  ``Nonpayment or Termination of Benefits Where Entitlement Involves 
                      Alcoholism or Drug Addiction

       ``(c)(1)(A) Notwithstanding any other provision of this 
     title, in the case of any individual entitled to benefits 
     based on disability, if alcoholism or drug addiction is a 
     contributing factor material to the Secretary's determination 
     that such individual is under a disability and such 
     individual is determined by the Secretary not to be in 
     compliance with the requirements of this subsection for a 
     month, such benefits shall be suspended for a period 
     commencing with such month and ending with the month 
     preceding the first month, after the determination of 
     noncompliance, in which such individual demonstrates that he 
     or she has reestablished and maintained compliance with such 
     requirements for the applicable period specified in paragraph 
     (3).
       ``(B) For purposes of this subsection, in the case of an 
     individual who is entitled to benefits based on disability 
     for the first month ending after 180 days after the date of 
     the enactment of the Social Security Administrative Reform 
     Act of 1994, if such individual has a primary diagnosis of 
     alcoholism or drug addiction, such alcoholism or drug 
     addiction shall be treated as a contributing factor material 
     to the Secretary's determination of disability.
       ``(2)(A) An individual described in paragraph (1) is in 
     compliance with the requirements of this subsection for a 
     month if such individual in such month undergoes any medical 
     or psychological treatment that may be appropriate, for such 
     individual's condition diagnosed as substance abuse or 
     alcohol abuse and for the stage of such individual's 
     rehabilitation, at an institution or facility approved for 
     purposes of this subsection by the Secretary, and complies in 
     such month with the terms, conditions, and requirements of 
     such treatment and with requirements imposed by the Secretary 
     under paragraph (6).
       ``(B) An individual described in paragraph (1) shall not be 
     determined to be not in compliance with the requirements of 
     this subsection for a month if access by such individual to 
     such treatment is not reasonably available for that month, as 
     determined under regulations of the Secretary.
       ``(3) The applicable period specified in this paragraph 
     is--
       ``(A) 2 consecutive months, in the case of a first 
     determination that an individual is not in compliance with 
     the requirements of this subsection,
       ``(B) 3 consecutive months, in the case of the second such 
     determination with respect to the individual, and
       ``(C) 6 consecutive months, in the case of the third or 
     subsequent such determination with respect to the individual.
       ``(4) In any case in which an individual's benefit is 
     suspended for a period of 12 consecutive months for failure 
     to comply with treatment described in paragraph (2) of this 
     subsection, the month following such period shall be deemed, 
     for purposes of section 223(a)(1) or subsection (d)(1)(G)(i), 
     (e)(1), or (f)(1) of section 202 (as applicable), as the 
     termination month with respect to such entitlement.
       ``(5)(A) Subject to subparagraph (B), monthly insurance 
     benefits under this title which would be payable to any 
     individual (other than the disabled individual to whom 
     benefits are not payable by reason of this subsection) on the 
     basis of the wages and self-employment income of such 
     disabled individual but for the provisions of paragraph (1) 
     or (4), shall be payable as though such disabled individual 
     were receiving such benefits which are not payable under this 
     subsection (and, in the case of a disabled individual whose 
     entitlement is terminated under paragraph (4), as though such 
     disabled individual's entitlement were not terminated).
       ``(B) If the monthly insurance benefits of a disabled 
     individual referred to in subparagraph (A) are not payable by 
     reason of termination of entitlement under paragraph (4), 
     monthly insurance benefits which are payable to any other 
     individual on the basis of the wages and self-employment 
     income of such disabled individual pursuant to subparagraph 
     (A) shall not be payable for any month after 2 years after 
     the last month of such entitlement.
       ``(6)(A) The Secretary shall provide for the monitoring and 
     testing of all individuals who are receiving benefits under 
     this title and who as a condition of payment of such benefits 
     are required to be undergoing treatment and complying with 
     the terms, conditions, and requirements thereof as described 
     in paragraph (2)(A), in order to assure such compliance and 
     to determine the extent to which the imposition of such 
     requirements is contributing to the achievement of the 
     purposes of this title. The Secretary shall annually submit 
     to the Congress a full and complete report on the Secretary's 
     activities under this paragraph. Each such annual report 
     shall include the number and percentage of such individuals 
     who did not receive regular drug testing during the year 
     covered by the report.
       ``(B) The Secretary, in consultation with drug and alcohol 
     treatment professionals, shall issue regulations--
       ``(i) defining appropriate treatment for alcoholics and 
     drug addicts who are subject to required medical or 
     psychological treatment under this subsection, and
       ``(ii) establishing guidelines to be used to review and 
     evaluate their compliance, including measures of the progress 
     of participants in such programs.
       ``(C)(i) For purposes of carrying out the requirements of 
     subparagraphs (A) and (B), the Secretary shall establish in 
     each State a referral and monitoring agency for such State.
       ``(ii) Each referral and monitoring agency for a State 
     shall--
       ``(I) identify appropriate placements, for individuals 
     residing in such State who are entitled to benefits based on 
     disability and with respect to whom alcoholism or drug 
     addiction is a contributing factor material to the 
     Secretary's determination that they are under a disability, 
     where they may obtain treatment described in paragraph 
     (2)(A),
       ``(II) refer such individuals to such placements for such 
     treatment, and
       ``(III) monitor compliance with the requirements of 
     paragraph (2)(A) by individuals who are referred by the 
     agency to such placements and promptly report failures to 
     comply to the Secretary.
       ``(7) In the case of any individual who is entitled to a 
     benefit based on disability for any month, if alcoholism or 
     drug addiction is a contributing factor material to the 
     Secretary's determination that the individual is under a 
     disability, payment of any past-due monthly insurance 
     benefits under this title to which such individual is 
     entitled shall be made in any month only to the extent that 
     the sum of--
       ``(A) the amount of such past-due benefit paid in such 
     month, and
       ``(B) the amount of any benefit for the preceding month 
     under such current entitlement which is payable in such 
     month,

     does not exceed 200 percent of the amount of such benefit for 
     the preceding month.
       ``(8) In the case of any individual entitled to benefits 
     based on disability, if alcoholism or drug addiction is a 
     contributing factor material to the Secretary's determination 
     that such individual is under a disability, the month 
     following the 36-month period beginning with such 
     individual's first month of entitlement shall be deemed, for 
     purposes of section 223(a)(1) or subsection (d)(1)(G)(i), 
     (e)(1), or (f)(1) of section 202 (as applicable), as the 
     termination month with respect to such entitlement, and such 
     individual shall be deemed not to be entitled to any past-due 
     benefits under such entitlement remaining unpaid as of the 
     end of such 36-month period. Such individual may not be 
     entitled to benefits based on disability for any month after 
     such 36-month period if, with respect to such entitlement, 
     alcoholism or drug addition is a contributing factor material 
     to the Secretary's determination that such individual is 
     under a disability.
       ``(9) For purposes of this subsection, the term `benefit 
     based on disability' of an individual means a disability 
     insurance benefit of such individual under section 223 or a 
     child's, widow's, or widower's insurance benefit of such 
     individual under section 202 based on the disability of such 
     individual.''.
       (B) Preservation of medicare benefits.--Section 226 of such 
     Act (42 U.S.C. 426) is amended by adding at the end the 
     following:
       ``(i) For purposes of this section, each person whose 
     benefit for any month is not payable by reason of paragraph 
     (1) of section 225(c) (and is not terminated by reason of 
     paragraph (4) or (8) of section 225(c)) shall be treated as 
     entitled to such benefit for such month if such person would 
     be entitled to such benefit for such month in the absence of 
     such section.''.paragraph (other than paragraphs (6)(C) and 
     (8) of section 225(c) of the Social Security Act added by 
     this paragraph) shall apply with respect to benefits based on 
     disability (as defined in section 225(c)(9) of the Social 
     Security Act, added by this section) of individuals becoming 
     entitled to such benefits for months beginning after 180 days 
     after the date of the enactment of this Act. Section 
     225(c)(6)(C) of the Social Security Act shall take effect 180 
     days after the date of the enactment of this Act. Section 
     225(c)(8) of the Social Security Act (added by this section) 
     shall apply with respect to benefits for months ending after 
     180 days after the date of the enactment of this Act, and, 
     for purposes of such section 225(c)(8), in the case of any 
     individual entitled to benefits based on disability (as so 
     defined) for the first month ending after 180 days after the 
     date of the enactment of this Act, such month shall be 
     treated as such individual's first month of entitlement to 
     such benefits.
       (4) Irrelevance of legality of services performed in 
     determining substantial gainful activity.--
       (A) In general.--Section 223(d)(4) of such Act (42 U.S.C. 
     423(d)(4)) is amended--
       (i) by inserting ``(A)'' after ``(4)''; and
       (ii) by adding at the end the following new subparagraph:
       ``(B) In determining under subparagraph (A) when services 
     performed or earnings derived from services demonstrate an 
     individual's ability to engage in substantial gainful 
     activity, the Secretary apply the criteria described in 
     subparagraph (A) with respect to services performed by any 
     individual without regard to the legality of such 
     services.''.
       (B) Effective date.--The amendments made by this paragraph 
     shall take effect on the date of the enactment of this Act.
       (b) Amendments Relating to Supplemental Security Income 
     Benefits Under Title XVI of the Social Security Act.--
       (1) Required payment of benefits to representative 
     payees.--
       (A) In general.--Section 1631(a)(2)(A) of the Social 
     Security Act (42 U.S.C. 1383(a)(2)(A)) is amended--
       (i) in clause (ii), by adding at the end the following: 
     ``In the case of an individual entitled to benefits under 
     this title by reason of disability, if alcoholism or drug 
     addiction is a contributing factor material to the 
     Secretary's determination that the individual is disabled, 
     the payment of such benefits to a representative payee shall 
     be deemed to serve the interest of such individual under this 
     title.''; and
       (ii) in clause (iii), by striking ``to the individual or 
     eligible spouse or to an alternative representative payee of 
     the individual or eligible spouse'' and inserting ``to an 
     alternative representative payee of the individual or 
     eligible spouse or, if the interest of the individual under 
     this title would be served thereby, to the individual or 
     eligible spouse''.
       (B) Conforming amendment.--Section 1631(a)(2)(B)(viii)(II) 
     of such Act (42 U.S.C. 1383(a)(2)(B)(viii)(II)) is amended by 
     striking ``15 years'' and all that follows and inserting ``of 
     15 years, or (if alcoholism or drug addition is a 
     contributing factor material to the Secretary's determination 
     that the individual is disabled) is entitled to benefits 
     under this title by reason of disability.''.
       (C) Effective date.--The amendments made by subparagraphs 
     (A) and (B) shall apply with respect to benefits for months 
     beginning after 180 days after the date of the enactment of 
     this Act.
       (2) Increased reliance on professional representative 
     payees.--
       (A) Preference required for organizational representative 
     payees.--Section 1631(a)(2)(B) of such Act (42 U.S.C. 
     1383(a)(2)(B)) is amended--
       (i) by redesignating clauses (vii) through (xii) as clauses 
     (viii) through (xiii), respectively;
       (ii) by inserting after clause (vi) the following:
       ``(vii) In the case of an individual entitled to benefits 
     under this title by reason of disability, if alcoholism or 
     drug addiction is a contributing factor material to the 
     Secretary's determination that the individual is disabled, 
     when selecting such individual's representative payee, 
     preference shall be given to--
       ``(I) a community-based nonprofit social service agency 
     licensed or bonded by the State;
       ``(II) a State or local government agency whose mission is 
     to carry out income maintenance, social service, or health 
     care-related activities; or
       ``(III) a State or local government agency with fiduciary 
     responsibilities,

     (or a designee of such an agency if the Secretary deems it 
     appropriate), unless the Secretary determines that selection 
     of such an agency would not be appropriate.'';
       (iii) in clause (viii) (as so redesignated), by striking 
     ``clause (viii)'' and inserting ``clause (ix)'';
       (iv) in clause (ix) (as so redesignated), by striking 
     ``(vii)'' and inserting ``(viii)'';
       (v) in clause (xiii) (as so redesignated)--

       (I) by striking ``(xi)'' and inserting ``(xii)''; and
       (II) by striking ``(x)'' and inserting ``(xi)''.

       (B) Availability of public agencies and other qualified 
     organizations to serve as representative payees.--Section 
     1631(a)(2)(D) of such Act (42 U.S.C. 1383(a)(2)(D)) is 
     amended--
       (i) in clause (i)--

       (I) by striking ``exceed the lesser of--'' and inserting 
     ``exceed--''; and
       (II) by striking subclauses (I) and (II) and inserting the 
     following:

       ``(I) in any case in which an individual is entitled to 
     benefits under this title by reason of disability and 
     alcoholism or drug addiction is a contributing factor 
     material to the Secretary's determination that the individual 
     is disabled, 10 percent of the monthly benefit involved, or
       ``(II) in any other case, the lesser of--
       ``(aa) 10 percent of the monthly benefit involved, or
       ``(bb) $25.00 per month.'';
       (ii) in clause (ii)--

       (I) by inserting ``State or local government agency whose 
     mission is to carry out income maintenance, social service, 
     or health care-related activities, any State or local 
     government agency with fiduciary responsibilities, or any'' 
     after ``means any'';
       (II) by inserting a comma after ``service agency'';
       (III) by adding ``and'' at the end of subclause (I); and
       (IV) in subclause (II)--

       (aa) by adding ``and'' at the end of item (aa);
       (bb) by striking ``; and'' at the end of item (bb) and 
     inserting a period; and
       (cc) by striking item (cc); and
       (iii) by striking clause (iv), effective July 1, 1994.
       (3) Nonpayment or termination of benefits.--
       (A) In general.--Section 1611(e)(3) of such Act (42 U.S.C. 
     1382(e)(3)), is amended by redesignating subparagraph (B) as 
     subparagraph (C) and by inserting after subparagraph (A) the 
     following:
       ``(B)(i) Notwithstanding any other provision of this title, 
     in the case of any individual entitled to benefits under this 
     title solely by reason of disability, if alcoholism or drug 
     addiction is a contributing factor material to the 
     Secretary's determination that such individual is disabled 
     and such individual is determined by the Secretary not to be 
     in compliance with the requirements of this subparagraph for 
     a month, such benefits shall be suspended for a period 
     commencing with such month and ending with the month 
     preceding the first month, after the determination of 
     noncompliance, in which such individual demonstrates that he 
     or she has reestablished and maintained compliance with such 
     requirements for the applicable period specified in clause 
     (iii).
       ``(ii)(I) An individual described in clause (i) is in 
     compliance with the requirements of this subparagraph for a 
     month if the individual in such month undergoes any medical 
     or psychological treatment that may be appropriate, for the 
     individual's condition diagnosed as substance abuse or 
     alcohol abuse and for the stage of the individual's 
     rehabilitation, at an institution or facility approved for 
     purposes of this subparagraph by the Secretary, and complies 
     in such month with the terms, conditions, and requirements of 
     such treatment and with requirements imposed by the Secretary 
     under subparagraph (C).
       ``(II) An individual described in clause (i) shall not be 
     determined to be not in compliance with the requirements of 
     this subparagraph for a month if access by such individual to 
     such treatment is not reasonably available for the month, as 
     determined under regulations of the Secretary.
       ``(iii) The applicable period specified in this clause is--
       ``(I) 2 consecutive months, in the case of a 1st 
     determination that an individual is not in compliance with 
     the requirements of this subparagraph;
       ``(II) 3 consecutive months, in the case of the 2nd such 
     determination with respect to the individual; or
       ``(III) 6 consecutive months, in the case of the 3rd or 
     subsequent such determination with respect to the individual.
       ``(iv) An individual shall not be an eligible individual 
     for purposes of this title for the 12-month period that 
     begins with the end of any period of 12 consecutive months 
     for which the benefits of the individual under this title 
     have been suspended by reason of this subparagraph.
       ``(v) In the case of any individual entitled to benefits 
     under this title by reason of disability, if alcoholism or 
     drug addiction is a contributing factor material to the 
     Secretary's determination that such individual is disabled, 
     such individual may not be entitled to such benefits by 
     reason of disability (or any past-due benefits under such 
     entitlement) for any month after the 36-month period 
     beginning with such individual's first month of such 
     entitlement, notwithstanding section 1619(a).
       ``(vi)(I) The Secretary shall not, in a month, pay to an 
     individual described in clause (i) benefits under this title 
     the payment of which is past due, in an amount that exceeds 
     the amount of benefits under this title which are payable to 
     the individual for the month and the payment of which is not 
     past due.
       ``(II) As used in subclause (I) of this clause, the term 
     `benefits under this title' includes supplementary payments 
     of the type described in section 1616(a) and payments 
     pursuant to an agreement entered into under section 212(a) of 
     Public Law 93-66.''.
       (B) Referral, monitoring, and treatment.--Section 
     1611(e)(3)(C) of such Act (42 U.S.C. 1382(e)(3)(C)), as so 
     designated by the amendment made by subparagraph (A) of this 
     paragraph, is amended--
       (i) by adding at the end the following: ``Each such annual 
     report shall include the number and percentage of such 
     individuals who did not receive regular drug testing during 
     the year covered by the report.'';
       (ii) by inserting ``(i)'' after ``(C)''; and
       (iii) by adding after and below the end following:
       ``(ii) The Secretary, in consultation with drug and alcohol 
     treatment professionals, shall issue regulations--
       ``(I) defining appropriate treatment for alcoholics and 
     drug addicts who are subject to required medical or 
     psychological treatment under this subparagraph; and
       ``(II) establishing guidelines to be used to review and 
     evaluate their compliance, including measures of the progress 
     of participants in such programs.
       ``(iii)(I) For purposes of carrying out the requirements of 
     clauses (i) and (ii), the Secretary shall establish in each 
     State a referral and monitoring agency for the State.
       ``(II) Each referral and monitoring agency for a State 
     shall--
       ``(aa) identify appropriate placements, for individuals 
     residing in the State who are entitled to benefits under this 
     title by reason of disability and with respect to whom 
     alcoholism or drug addiction is a contributing factor 
     material to the Secretary's determination that they are 
     disabled, where they may obtain treatment described in 
     subparagraph (B)(ii)(I);
       ``(bb) refer such individuals to such placements for such 
     treatment; and
       ``(cc) monitor compliance with the requirements of 
     subparagraph (B) by individuals who are referred by the 
     agency to such placements, and promptly report to the 
     Secretary any failure to comply with such requirements.''.
       (C) Preservation of medicaid benefits.--Section 1634 of 
     such Act (42 U.S.C. 13283c) is amended by adding at the end 
     the following:
       ``(e) Each person to whom benefits under this title by 
     reason of disability are not payable for any month solely by 
     reason of section 1611(e)(3)(B) shall be treated, for 
     purposes of title XIX, as receiving benefits under this title 
     for such month.''.
       (D) Conforming amendments.--Section 1611(e)(3) of such Act 
     (42 U.S.C. 1382(e)(3)), as amended by subparagraphs (A) and 
     (B) of this paragraph, is amended--
       (i) in subparagraph (A), by striking ``(B)'' and inserting 
     ``(C)''; and
       (ii) in subparagraph (C), by inserting ``or (B)'' after 
     ``(A)''.
       (E) Effective date.--
       (i) In general.--Except as provided in clauses (ii) and 
     (iii), the amendments made by this paragraph shall apply with 
     respect to benefits for months beginning after 180 days after 
     the date of the enactment of this Act.
       (ii) Time limitation on benefits.--Section 1611(e)(3)(B)(v) 
     of the Social Security Act (as added by the amendment made by 
     subparagraph (A) of this paragraph) shall apply with respect 
     to benefits for months ending after 180 days after the date 
     of the enactment of this Act, and, for purposes of such 
     section, in the case of any individual entitled to benefits 
     by reason of disability for the first month ending after 180 
     days after the date of the enactment of this Act, such month 
     shall be treated as such individual's first month of 
     entitlement to such benefits.
       (iii) Establishment of referral and monitoring agencies.--
     Section 1611(e)(3)(C)(iii) of the Social Security Act (as 
     added by the amendment made by subparagraph (B)(iii) of this 
     paragraph) shall take effect 180 days after the date of the 
     enactment of this Act.
       (4) Irrelevance of legality of substantial gainful 
     activity.--
       (A) In general.--Section 1614(a)(3)(D) of such Act (42 
     U.S.C. 1382c(a)(3)(D)) is amended by adding at the end the 
     following: ``The Secretary shall make determinations under 
     this title with respect to substantial gainful activity, 
     without regard to the legality of the activity.''.
       (B) Effective date.--The amendment made by subparagraph (A) 
     shall take effect on the date of the enactment of this Act.
       (c) Effective Date.--The amendments made by the preceding 
     provisions of this section shall apply to benefits payable 
     for months beginning 180 or more days after the date of the 
     enactment of this Act.
       (d) Demonstration Projects.--
       (1) In general.--The Secretary of Health and Human Services 
     shall develop and carry out demonstration projects designed 
     to explore innovative referral, monitoring, and treatment 
     approaches with respect to--
       (A) individuals who are entitled to disability insurance 
     benefits or child's, widow's, or widower's insurance benefits 
     based on disability under title II of the Social Security 
     Act, and
       (B) individuals who are eligible for supplemental security 
     income benefits under title XVI of such Act based solely on 
     disability,

     in cases in which alcoholism or drug addiction is a 
     contributing factor material to the Secretary's determination 
     that individuals are under a disability.
       (2) Scope.--The demonstration projects developed under 
     paragraph (1) shall be of sufficient scope and shall be 
     carried out on a wide enough scale to permit a thorough 
     evaluation of the alternative approaches under consideration 
     while giving assurance that the results derived from the 
     projects will obtain generally in the operation of the 
     programs involved without committing such programs to the 
     adoption of any particular system either locally or 
     nationally.
       (3) Final report.--The Secretary shall submit to the 
     Committee on Ways and Means of the House of Representatives 
     and the Committee on Finance of the Senate no later than 
     December 31, 1997, a final report on the demonstration 
     projects carried out under this subsection, together with any 
     related data and materials which the Secretary may consider 
     appropriate. The authority under this section shall terminate 
     upon the transmittal of such final report.

     SEC. 202. ISSUANCE OF PHYSICAL DOCUMENTS IN THE FORM OF 
                   BONDS, NOTES, OR CERTIFICATES TO THE SOCIAL 
                   SECURITY TRUST FUNDS.

       (a) Requirement that Obligations Issued to the OASDI Trust 
     Funds Be Evidenced by Paper Instruments in the Form of Bonds, 
     Notes, or Certificates of Indebtedness Setting Forth Their 
     Terms.--Section 201(d) of the Social Security Act (42 U.S.C. 
     401(d)) is amended by inserting after the fifth sentence the 
     following new sentence: ``Each obligation issued for purchase 
     by the Trust Funds under this subsection shall be evidenced 
     by a paper instrument in the form of a bond, note, or 
     certificate of indebtedness issued by the Secretary of the 
     Treasury setting forth the principal amount, date of 
     maturity, and interest rate of the obligation, and stating on 
     its face that the obligation shall be incontestable in the 
     hands of the Trust Fund to which it is issued, that the 
     obligation is supported by the full faith and credit of the 
     United States, and that the United States is pledged to the 
     payment of the obligation with respect to both principal and 
     interest.''.
       (b) Payment to the OASDI Trust Funds from the General Fund 
     of the Treasury of Interest on Obligations, and of Proceeds 
     from the Sale or Redemption of Obligations, Required to Be in 
     the Form of Checks.--Section 201(f) of such Act (42 U.S.C. 
     401(f)) is amended by adding at the end the following new 
     sentence: ``Payment from the general fund of the the Treasury 
     to either of the Trust Funds of any such interest or proceeds 
     shall be in the form of paper checks drawn on such general 
     fund to the order of such Trust Fund.''.
       (c) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply with respect to obligations issued, and payments made, 
     after 60 days after the date of the enactment of this Act.
       (2) Treatment of outstanding obligations.--Not later than 
     60 days after the date of the enactment of this Act, the 
     Secretary of the Treasury shall issue to the Federal Old-Age 
     and Survivors Insurance Trust Fund or the Federal Disability 
     Insurance Trust Fund, as applicable, a paper instrument, in 
     the form of a bond, note, or certificate of indebtedness, for 
     each obligation which has been issued to the Trust Fund under 
     section 201(d) of the Social Security Act and which is 
     outstanding as of such date. Each such document shall set 
     forth the principal amount, date of maturity, and interest 
     rate of the obligation, and shall state on its face that the 
     obligation shall be incontestable in the hands of the Trust 
     Fund to which it was issued, that the obligation is supported 
     by the full faith and credit of the United States, and that 
     the United States is pledged to the payment of the obligation 
     with respect to both principal and interest.

     SEC. 203. EXPLICIT REQUIREMENTS FOR MAINTENANCE OF TELEPHONE 
                   ACCESS TO LOCAL OFFICES OF THE SOCIAL SECURITY 
                   ADMINISTRATION.

       (a) Maintenance of Service to Local Offices.--
       (1) In general.--Section 5110(a) of the Omnibus Budget 
     Reconciliation Act of 1990 (104 Stat. 1388-272) is amended by 
     adding at the end the following new sentence: ``In carrying 
     out the requirements of the preceding sentence, the Secretary 
     shall reestablish and maintain in service at least the same 
     number of telephone lines to each such local office as was in 
     place as of such date, including telephone sets for 
     connections to such lines.''.
       (2) Effective date.--The Secretary of Health and Human 
     Services shall ensure that the requirements of the amendment 
     made by paragraph (1) are carried out no later than 90 days 
     after the date of the enactment of this Act.
       (3) GAO report.--The Comptroller General of the United 
     States shall make an independent determination of the number 
     of telephone lines to each local office of the Social 
     Security Administration which are in place as of 90 days 
     after the enactment of this Act and shall report his findings 
     to the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate no 
     later than 150 days after the date of the enactment of this 
     Act.
       (b) Maintenance of Toll-Free Telephone Number Service.--The 
     Secretary of Health and Human Services shall ensure that 
     toll-free telephone service provided by the Social Security 
     Administration is maintained at a level which is at least 
     equal to that in effect on the date of the enactment of this 
     Act.

     SEC. 204. EXPANSION OF STATE OPTION TO EXCLUDE SERVICE OF 
                   ELECTION OFFICIALS OR ELECTION WORKERS FROM 
                   COVERAGE.

       (a) Limitation on Mandatory Coverage of State Election 
     Officials and Election Workers Without State Retirement 
     System.--
       (1) Amendment to social security act.--Section 
     210(a)(7)(F)(iv) of the Social Security Act (42 U.S.C. 
     410(a)(7)(F)(iv)) (as amended by section 11332(a) of the 
     Omnibus Budget Reconciliation Act of 1990) is amended by 
     striking ``$100'' and inserting ``$1,000 with respect to 
     service performed during 1995, and the adjusted amount 
     determined under section 218(c)(8)(B) for any subsequent year 
     with respect to service performed during such subsequent 
     year''.
       (2) Amendment to fica.--Section 3121(b)(7)(F)(iv) of the 
     Internal Revenue Code of 1986 (as amended by section 11332(b) 
     of the Omnibus Budget Reconciliation Act of 1990) is amended 
     by striking ``$100'' and inserting ``$1,000 with respect to 
     service performed during 1995, and the adjusted amount 
     determined under section 218(c)(8)(B) of the Social Security 
     Act for any subsequent year with respect to service performed 
     during such subsequent year''.
       (b) Conforming Amendments Relating to Medicare Qualified 
     Government Employment.--
       (1) Amendment to social security act.--Section 210(p)(2)(E) 
     of the Social Security Act (42 U.S.C. 410(p)(2)(E)) is 
     amended by striking ``$100'' and inserting ``$1,000 with 
     respect to service performed during 1995, and the adjusted 
     amount determined under section 218(c)(8)(B) for any 
     subsequent year with respect to service performed during such 
     subsequent year''.
       (2) Amendment to fica.--Section 3121(u)(2)(B)(ii)(V) of the 
     Internal Revenue Code of 1986 is amended by striking ``$100'' 
     and inserting ``$1,000 with respect to service performed 
     during 1995, and the adjusted amount determined under section 
     218(c)(8)(B) of the Social Security Act for any subsequent 
     year with respect to service performed during such subsequent 
     year''.
       (c) Authority for States To Modify Coverage Agreements With 
     Respect to Election Officials and Election Workers.--Section 
     218(c)(8) of the Social Security Act (42 U.S.C. 418(c)(8)) is 
     amended--
       (1) by striking ``on or after January 1, 1968,'' and 
     inserting ``at any time'';
       (2) by striking ``$100'' and inserting ``$1,000 with 
     respect to service performed during 1995, and the adjusted 
     amount determined under subparagraph (B) for any subsequent 
     year with respect to service performed during such subsequent 
     year''; and
       (3) by striking the last sentence and inserting the 
     following new sentence: ``Any modification of an agreement 
     pursuant to this paragraph shall be effective with respect to 
     services performed in and after the calendar year in which 
     the modification is mailed or delivered by other means to the 
     Secretary.''.
       (d) Indexation of Exempt Amount.--Section 218(c)(8) of such 
     Act (as amended by subsection (c)) is further amended--
       (1) by inserting ``(A)'' after ``(8)''; and
       (2) by adding at the end the following new subparagraph:
       ``(B) For each year after 1995, the Secretary shall adjust 
     the amount referred to in subparagraph (A) at the same time 
     and in the same manner as is provided under section 
     215(a)(1)(B)(ii) with respect to the amounts referred to in 
     section 215(a)(1)(B)(i), except that--
       ``(i) for purposes of this subparagraph, 1993 shall be 
     substituted for the calendar year referred to in section 
     215(a)(1)(B)(ii)(II), and
       ``(ii) such amount as so adjusted, if not a multiple of 
     $100, shall be rounded to the next higher multiple of $100 
     where such amount is a multiple of $50 and to the nearest 
     multiple of $100 in any other case.

     The Secretary shall determine and publish in the Federal 
     Register each adjusted amount determined under this 
     subparagraph not later than November 1 preceding the year for 
     which the adjustment is made.''.
       (e) Effective Date.--The amendments made by subsections 
     (a), (b), and (c) shall apply with respect to service 
     performed on or after January 1, 1995.

     SEC. 205. USE OF SOCIAL SECURITY NUMBERS BY STATES AND LOCAL 
                   GOVERNMENTS AND FEDERAL DISTRICT COURTS FOR 
                   JURY SELECTION PURPOSES.

       (a) In General.--Section 205(c)(2) of the Social Security 
     Act (42 U.S.C. 405(c)(2)) is amended--
       (1) in subparagraph (B)(i), by striking ``(E)'' in the 
     matter preceding subclause (I) and inserting ``(F)'';
       (2) by redesignating subparagraphs (E) and (F) as 
     subparagraphs (F) and (G), respectively; and
       (3) by inserting after subparagraph (D) the following:
       ``(E)(i) It is the policy of the United States that--
       ``(I) any State (or any political subdivision of a State) 
     may utilize the social security account numbers issued by the 
     Secretary for the additional purposes described in clause 
     (ii) if such numbers have been collected and are otherwise 
     utilized by such State (or political subdivision) in 
     accordance with applicable law, and
       ``(II) any district court of the United States may use, for 
     such additional purposes, any such social security account 
     numbers which have been so collected and are so utilized by 
     any State.
       ``(ii) The additional purposes described in this clause are 
     the following:
       ``(I) Identifying duplicate names of individuals on master 
     lists used for jury selection purposes.
       ``(II) Identifying on such master lists those individuals 
     who are ineligible to serve on a jury by reason of their 
     conviction of a felony.
       ``(iii) To the extent that any provision of Federal law 
     enacted before the date of the enactment of this subparagraph 
     is inconsistent with the policy set forth in clause (i), such 
     provision shall, on and after that date, be null, void, and 
     of no effect.
       ``(iv) For purposes of this subparagraph, the term `State' 
     has the meaning such term has in subparagraph (D).''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on the date of the enactment of this Act.

     SEC. 206. AUTHORIZATION FOR ALL STATES TO EXTEND COVERAGE TO 
                   STATE AND LOCAL POLICEMEN AND FIREMEN UNDER 
                   EXISTING COVERAGE AGREEMENTS.

       (a) In General.--Section 218(l) of the Social Security Act 
     (42 U.S.C. 418(l)) is amended--
       (1) in paragraph (1), by striking ``(1)'' after ``(l)'', 
     and by striking ``the State of'' and all that follows through 
     ``prior to the date of enactment of this subsection'' and 
     inserting ``a State entered into pursuant to this section''; 
     and
       (2) by striking paragraph (2).
       (b) Conforming Amendment.--Section 218(d)(8)(D) of such Act 
     (42 U.S.C. 418(d)(8)(D)) is amended by striking ``agreements 
     with the States named in'' and inserting ``State agreements 
     modified as provided in''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to modifications filed by States 
     after the date of the enactment of this Act.

     SEC. 207. LIMITED EXEMPTION FOR CANADIAN MINISTERS FROM 
                   CERTAIN SELF-EMPLOYMENT TAX LIABILITY.

       (a) In General.--Notwithstanding any other provision of 
     law, if--
       (1) an individual performed services described in section 
     1402(c)(4) of the Internal Revenue Code of 1986 which are 
     subject to tax under section 1401 of such Code,
       (2) such services were performed in Canada at a time when 
     no agreement between the United States and Canada pursuant to 
     section 233 of the Social Security Act was in effect, and
       (3) such individual was required to pay contributions on 
     the earnings from such services under the social insurance 
     system of Canada,

     then such individual may file a certificate under this 
     section in such form and manner, and with such official, as 
     may be prescribed in regulations issued under chapter 2 of 
     such Code. Upon the filing of such certificate, 
     notwithstanding any judgment which has been entered to the 
     contrary, such individual shall be exempt from payment of 
     such tax with respect to services described in paragraphs (1) 
     and (2) and from any penalties or interest for failure to pay 
     such tax or to file a self-employment tax return as required 
     under section 6017 of such Code.
       (b) Period for Filing.--A certificate referred to in 
     subsection (a) may be filed only during the 180-day period 
     commencing with the date on which the regulations referred to 
     in subsection (a) are issued.
       (c) Taxable Years Affected by Certificate.--A certificate 
     referred to in subsection (a) shall be effective for taxable 
     years ending after December 31, 1978, and before January 1, 
     1985.
       (d) Restriction on Crediting of Exempt Self-Employment 
     Income.--In any case in which an individual is exempt under 
     this section from paying a tax imposed under section 1401 of 
     the Internal Revenue Code of 1986, any income on which such 
     tax would have been imposed but for such exemption shall not 
     constitute self-employment income under section 211(b) of the 
     Social Security Act (42 U.S.C. 411(b)), and, if such 
     individual's primary insurance amount has been determined 
     under section 215 of such Act (42 U.S.C. 415), 
     notwithstanding section 215(f)(1) of such Act, the Secretary 
     of Health and Human Services shall recompute such primary 
     insurance amount so as to take into account the provisions of 
     this subsection. The recomputation under this subsection 
     shall be effective with respect to benefits for months 
     following approval of the certificate of exemption.

     SEC. 208. EXCLUSION OF TOTALIZATION BENEFITS FROM THE 
                   APPLICATION OF THE WINDFALL ELIMINATION 
                   PROVISION.

       (a) In General.--Section 215(a)(7) of the Social Security 
     Act (42 U.S.C. 415(a)(7)) is amended--
       (1) in subparagraph (A), by striking ``but excluding'' and 
     all that follows through ``1937'' and inserting ``but 
     excluding (I) a payment under the Railroad Retirement Act of 
     1974 or 1937, and (II) a payment by a social security system 
     of a foreign country based on an agreement concluded between 
     the United States and such foreign country pursuant to 
     section 233''; and
       (2) in subparagraph (E), by inserting after ``in the case 
     of an individual'' the following: ``whose eligibility for 
     old-age or disability insurance benefits is based on an 
     agreement concluded pursuant to section 233 or an 
     individual''.
       (b) Conforming Amendment Relating to Benefits Under 1939 
     Act.--Section 215(d)(3) of such Act (42 U.S.C. 415(d)(3)) is 
     amended by striking ``but excluding'' and all that follows 
     through ``1937'' and inserting ``but excluding (I) a payment 
     under the Railroad Retirement Act of 1974 or 1937, and (II) a 
     payment by a social security system of a foreign country 
     based on an agreement concluded between the United States and 
     such foreign country pursuant to section 233''.
       (c) Effective Date.--The amendments made by this section 
     shall apply (notwithstanding section 215(f)(1) of the Social 
     Security Act (42 U.S.C. 415(f)(1))) with respect to benefits 
     payable for months after January 1995.

     SEC. 209. EXCLUSION OF MILITARY RESERVISTS FROM APPLICATION 
                   OF THE GOVERNMENT PENSION OFFSET AND WINDFALL 
                   ELIMINATION PROVISIONS.

       (a) Exclusion from Government Pension Offset Provisions.--
     Subsections (b)(4), (c)(2), (e)(7), (f)(2), and (g)(4) of 
     section 202 of the Social Security Act (42 U.S.C. 402 (b)(4), 
     (c)(2), (e)(7), (f)(2), and (g)(4)) are each amended--
       (1) in subparagraph (A)(ii), by striking ``unless 
     subparagraph (B) applies.'';
       (2) in subparagraph (A), by striking ``The'' in the matter 
     following clause (ii) and inserting ``unless subparagraph (B) 
     applies. The''; and
       (3) in subparagraph (B), by redesignating the existing 
     matter as clause (ii), and by inserting before such clause 
     (ii) (as so redesignated) the following:
       ``(B)(i) Subparagraph (A)(i) shall not apply with respect 
     to monthly periodic benefits based wholly on service as a 
     member of a uniformed service (as defined in section 
     210(m)).''.
       (b) Exclusion From Windfall Elimination Provisions.--
     Section 215(a)(7)(A) of such Act (as amended by section 
     210(a) of this Act) and section 215(d)(3) of such Act (as 
     amended by section 210(b) of this Act) are each further 
     amended--
       (1) by striking ``and'' before ``(II)''; and
       (2) by striking ``section 233'' and inserting ``section 
     233, and (III) a payment based wholly on service as a member 
     of a uniformed service (as defined in section 210(m))''.
       (c) Effective Date.--The amendments made by this section 
     shall apply (notwithstanding section 215(f) of the Social 
     Security Act) with respect to benefits payable for months 
     after January 1995.

     SEC. 210. REPEAL OF THE FACILITY-OF-PAYMENT PROVISION.

       (a) Repeal of Rule Precluding Redistribution Under Family 
     Maximum.--Section 203(i) of the Social Security Act (42 
     U.S.C. 403(i)) is repealed.
       (b) Coordination Under Family Maximum of Reduction in 
     Beneficiary's Auxiliary Benefits With Suspension of Auxiliary 
     Benefits of Other Beneficiary Under Earnings Test.--Section 
     203(a)(4) of such Act (42 U.S.C. 403(a)(4)) is amended by 
     striking ``section 222(b). Whenever'' and inserting the 
     following: ``section 222(b). Notwithstanding the preceding 
     sentence, any reduction under this subsection in the case of 
     an individual who is entitled to a benefit under subsection 
     (b), (c), (d), (e), (f), (g), or (h) of section 202 for any 
     month on the basis of the same wages and self-employment 
     income as another person--
       ``(A) who also is entitled to a benefit under subsection 
     (b), (c), (d), (e), (f), (g), or (h) of section 202 for such 
     month,
       ``(B) who does not live in the same household as such 
     individual, and
       ``(C) whose benefit for such month is suspended (in whole 
     or in part) pursuant to subsection (h)(3) of this section,

     shall be made before the suspension under subsection (h)(3). 
     Whenever''.
       (c) Conforming Amendment Applying Earnings Reporting 
     Requirement Despite Suspension of Benefits.--The third 
     sentence of section 203(h)(1)(A) of such Act (42 U.S.C. 
     403(h)(1)(A)) is amended by striking ``Such report need not 
     be made'' and all that follows through ``The Secretary may 
     grant'' and inserting the following: ``Such report need not 
     be made for any taxable year--
       ``(i) beginning with or after the month in which such 
     individual attained age 70, or
       ``(ii) if benefit payments for all months (in such taxable 
     year) in which such individual is under age 70 have been 
     suspended under the provisions of the first sentence of 
     paragraph (3) of this subsection, unless--
       ``(I) such individual is entitled to benefits under 
     subsection (b), (c), (d), (e), (f), (g), or (h) of section 
     202,
       ``(II) such benefits are reduced under subsection (a) of 
     this section for any month in such taxable year, and
       ``(III) in any such month there is another person who also 
     is entitled to benefits under subsection (b), (c), (d), (e), 
     (f), (g), or (h) of section 202 on the basis of the same 
     wages and self-employment income and who does not live in the 
     same household as such individual.

     The Secretary may grant''.
       (d) Conforming Amendment Deleting Special Income Tax 
     Treatment of Benefits No Longer Required by Reason of 
     Repeal.--Section 86(d)(1) of the Internal Revenue Code of 
     1986 (relating to income tax on social security benefits) is 
     amended by striking the last sentence.
       (e) Effective Dates.--
       (1) The amendments made by subsections (a), (b), and (c) 
     shall apply with respect to benefits payable for months after 
     December 1995.
       (2) The amendment made by subsection (d) shall apply with 
     respect to benefits received after December 31, 1995, in 
     taxable years ending after such date.

     SEC. 211. MAXIMUM FAMILY BENEFITS IN GUARANTEE CASES.

       (a) In General.--Section 203(a) of the Social Security Act 
     (42 U.S.C. 403(a)) is amended by adding at the end the 
     following new paragraph:
       ``(10)(A) Subject to subparagraphs (B) and (C)--
       ``(i) the total monthly benefits to which beneficiaries may 
     be entitled under sections 202 and 223 for a month on the 
     basis of the wages and self-employment income of an 
     individual whose primary insurance amount is computed under 
     section 215(a)(2)(B)(i) shall equal the total monthly 
     benefits which were authorized by this section with respect 
     to such individual's primary insurance amount for the last 
     month of his prior entitlement to disability insurance 
     benefits, increased for this purpose by the general benefit 
     increases and other increases under section 215(i) that would 
     have applied to such total monthly benefits had the 
     individual remained entitled to disability insurance benefits 
     until the month in which he became entitled to old-age 
     insurance benefits or reentitled to disability insurance 
     benefits or died, and
       ``(ii) the total monthly benefits to which beneficiaries 
     may be entitled under sections 202 and 223 for a month on the 
     basis of the wages and self-employment income of an 
     individual whose primary insurance amount is computed under 
     section 215(a)(2)(C) shall equal the total monthly benefits 
     which were authorized by this section with respect to such 
     individual's primary insurance amount for the last month of 
     his prior entitlement to disability insurance benefits.
       ``(B) In any case in which--
       ``(i) the total monthly benefits with respect to such 
     individual's primary insurance amount for the last month of 
     his prior entitlement to disability insurance benefits was 
     computed under paragraph (6), and
       ``(ii) the individual's primary insurance amount is 
     computed under subparagraph (B)(i) or (C) of section 
     215(a)(2) by reason of the individual's entitlement to old-
     age insurance benefits or death,

     the total monthly benefits shall equal the total monthly 
     benefits that would have been authorized with respect to the 
     primary insurance amount for the last month of his prior 
     entitlement to disability insurance benefits if such total 
     monthly benefits had been computed without regard to 
     paragraph (6).
       ``(C) This paragraph shall apply before the application of 
     paragraph (3)(A), and before the application of section 
     203(a)(1) of this Act as in effect in December 1978.''.
       (b) Conforming Amendment.--Section 203(a)(8) of such Act 
     (42 U.S.C. 403(a)(8)) is amended by striking ``Subject to 
     paragraph (7),'' and inserting ``Subject to paragraph (7) and 
     except as otherwise provided in paragraph (10)(C),''.
       (c) Effective Date.--The amendments made by this section 
     shall apply for the purpose of determining the total monthly 
     benefits to which beneficiaries may be entitled under 
     sections 202 and 223 of the Social Security Act based on the 
     wages and self-employment income of an individual who--
       (1) becomes entitled to an old-age insurance benefit under 
     section 202(a) of such Act,
       (2) becomes reentitled to a disability insurance benefit 
     under section 223 of such Act, or
       (3) dies,

     after January 1995.

     SEC. 212. AUTHORIZATION FOR DISCLOSURE BY THE SECRETARY OF 
                   HEALTH AND HUMAN SERVICES OF INFORMATION FOR 
                   PURPOSES OF PUBLIC OR PRIVATE EPIDEMIOLOGICAL 
                   AND SIMILAR RESEARCH.

       (a) In General.--Section 1106 of the Social Security Act 
     (42 U.S.C. 1306) is amended--
       (1) by redesignating subsections (d) and (e) as subsections 
     (e) and (f), respectively;
       (2) in subsection (f) (as so redesignated), by striking 
     ``subsection (d)'' and inserting ``subsection (e)''; and
       (3) by inserting after subsection (c) the following new 
     subsection:
       ``(d) Notwithstanding any other provision of this section, 
     in any case in which--
       ``(1) information regarding whether an individual is shown 
     on the records of the Secretary as being alive or deceased is 
     requested from the Secretary for purposes of epidemiological 
     or similar research which the Secretary finds may reasonably 
     be expected to contribute to a national health interest, and
       ``(2) the requester agrees to reimburse the Secretary for 
     providing such information and to comply with limitations on 
     safeguarding and rerelease or redisclosure of such 
     information as may be specified by the Secretary,

     the Secretary shall comply with such request, except to the 
     extent that compliance with such request would constitute a 
     violation of the terms of any contract entered into under 
     section 205(r).''.
       (b) Availability of Information Returns Regarding Wages 
     Paid Employees.--Section 6103(l)(5) of the Internal Revenue 
     Code of 1986 (relating to disclosure of returns and return 
     information to the Department of Health and Human Services 
     for purposes other than tax administration) is amended--
       (1) by striking ``for the purpose of'' and inserting ``for 
     the purpose of--'';
       (2) by striking ``carrying out, in accordance with an 
     agreement'' and inserting the following:
       ``(A) carrying out, in accordance with an agreement'';
       (3) by striking ``program.'' and inserting ``program; or''; 
     and
       (4) by adding at the end the following new subparagraph:
       ``(B) providing information regarding the mortality status 
     of individuals for epidemiological and similar research in 
     accordance with section 1106(d) of the Social Security 
     Act.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to requests for information made 
     after the date of the enactment of this Act.

     SEC. 213. MISUSE OF SYMBOLS, EMBLEMS, OR NAMES IN REFERENCE 
                   TO SOCIAL SECURITY PROGRAMS AND AGENCIES.

       (a) Prohibition of Unauthorized Reproduction, Reprinting, 
     or Distribution for Fee of Certain Official Publications.--
     Section 1140(a) of the Social Security Act (42 U.S.C. 1320b-
     10(a)) is amended--
       (1) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively;
       (2) by inserting ``(1)'' after ``(a)''; and
       (3) by adding at the end the following new paragraph:
       ``(2) No person may, for a fee, reproduce, reprint, or 
     distribute any item consisting of a form, application, or 
     other publication of the Social Security Administration 
     unless such person has obtained specific, written 
     authorization for such activity in accordance with 
     regulations which the Secretary shall prescribe.''.
       (b) Addition to Prohibited Words, Letters, Symbols, and 
     Emblems.--Paragraph (1) of section 1140(a) of such Act (as 
     redesignated by subsection (a)) is further amended--
       (1) in subparagraph (A) (as redesignated), by striking 
     ``Administration', the letters `SSA' or `HCFA','' and 
     inserting ``Administration', `Department of Health and Human 
     Services', `Health and Human Services', `Supplemental 
     Security Income Program', or `Medicaid', the letters `SSA', 
     `HCFA', `DHHS', `HHS', or `SSI',''; and
       (2) in subparagraph (B) (as redesignated), by striking 
     ``Social Security Administration'' each place it appears and 
     inserting ``Social Security Administration, Health Care 
     Financing Administration, or Department of Health and Human 
     Services'', and by striking ``or of the Health Care Financing 
     Administration''.
       (c) Exemption for Use of Words, Letters, Symbols, and 
     Emblems of State and Local Government Agencies by Such 
     Agencies.--Paragraph (1) of section 1140(a) of such Act (as 
     redesignated by subsection (a)) is further amended by adding 
     at the end the following new sentence: ``The preceding 
     provisions of this subsection shall not apply with respect to 
     the use by any agency or instrumentality of a State or 
     political subdivision of a State of any words or letters 
     which identify an agency or instrumentality of such State or 
     of a political subdivision of such State or the use by any 
     such agency or instrumentality of any symbol or emblem of an 
     agency or instrumentality of such State or a political 
     subdivision of such State.''.
       (d) Inclusion of Reasonableness Standard.--Section 
     1140(a)(1) of such Act (as amended by the preceding 
     provisions of this section) is further amended, in the matter 
     following subparagraph (B) (as redesignated), by striking 
     ``convey'' and inserting ``convey, or in a manner which 
     reasonably could be interpreted or construed as conveying,''.
       (e) Ineffectiveness of Disclaimers.--Subsection (a) of 
     section 1140 of such Act (as amended by the preceding 
     provisions of this section) is further amended by adding at 
     the end the following new paragraph:
       ``(3) Any determination of whether the use of one or more 
     words, letters, symbols, or emblems (or any combination or 
     variation thereof) in connection with an item described in 
     paragraph (1) or the reproduction, reprinting, or 
     distribution of an item described in paragraph (2) is a 
     violation of this subsection shall be made without regard to 
     any inclusion in such item (or any so reproduced, reprinted, 
     or distributed copy thereof) of a disclaimer of affiliation 
     with the United States Government or any particular agency or 
     instrumentality thereof.''.
       (f) Violations With Respect to Individual Items.--Section 
     1140(b)(1) of such Act (42 U.S.C. 1320b-10(b)(1)) is amended 
     by adding at the end the following new sentence: ``In the 
     case of any items referred to in subsection (a)(1) consisting 
     of pieces of mail, each such piece of mail which contains one 
     or more words, letters, symbols, or emblems in violation of 
     subsection (a) shall represent a separate violation. In the 
     case of any item referred to in subsection (a)(2), the 
     reproduction, reprinting, or distribution of such item shall 
     be treated as a separate violation with respect to each copy 
     thereof so reproduced, reprinted, or distributed.''.
       (g) Elimination of Cap on Aggregate Liability Amount.--
       (1) Repeal.--Paragraph (2) of section 1140(b) of such Act 
     (42 U.S.C. 1320b-10(b)(2)) is repealed.
       (2) Conforming amendments.--Section 1140(b) of such Act is 
     further amended--
       (A) by striking ``(1) Subject to paragraph (2), the'' and 
     inserting ``The'';
       (B) by redesignating subparagraphs (A) and (B) as 
     paragraphs (1) and (2), respectively; and
       (C) in paragraph (1) (as redesignated), by striking 
     ``subparagraph (B)'' and inserting ``paragraph (2)''.
       (h) Removal of Formal Declination Requirement.--Section 
     1140(c)(1) of such Act (42 U.S.C. 1320b-10(c)(1)) is amended 
     by inserting ``and the first sentence of subsection (c)'' 
     after ``and (i)''.
       (i) Penalties Relating to Social Security Administration 
     Deposited in OASI Trust Fund.--Section 1140(c)(2) of such Act 
     (42 U.S.C. 1320b-10(c)(2)) is amended in the second sentence 
     by striking ``United States.'' and inserting ``United States, 
     except that, to the extent that such amounts are recovered 
     under this section as penalties imposed for misuse of words, 
     letters, symbols, or emblems relating to the Social Security 
     Administration, such amounts shall be deposited into the 
     Federal Old-Age and Survivor's Insurance Trust Fund.''.
       (j) Enforcement.--Section 1140 of such Act (42 U.S.C. 
     1320b-10) is amended by adding at the end the following new 
     subsection:
       ``(d) The preceding provisions of this section shall be 
     enforced through the Office of Inspector General of the 
     Department of Health and Human Services.''.
       (k) Annual Reports.--Section 1140 of such Act (as amended 
     by the preceding provisions of this section) is further 
     amended by adding at the end the following new subsection:
       ``(e) The Secretary shall include in the annual report 
     submitted pursuant to section 704 a report on the operation 
     of this section during the year covered by such annual 
     report. Such report shall specify--
       ``(1) the number of complaints of violations of this 
     section received by the Social Security Administration during 
     the year,
       ``(2) the number of cases in which a notice of violation of 
     this section was sent by the Social Security Administration 
     during the year requesting that an individual cease 
     activities in violation of this section,
       ``(3) the number of complaints of violations of this 
     section referred by the Social Security Administration to the 
     Inspector General in the Department of Health and Human 
     Services during the year,
       ``(4) the number of investigations of violations of this 
     section undertaken by the Inspector General during the year,
       ``(5) the number of cases in which a demand letter was sent 
     during the year assessing a civil money penalty under this 
     section,
       ``(6) the total amount of civil money penalties assessed 
     under this section during the year,
       ``(7) the number of requests for hearings filed during the 
     year pursuant to subsection (c)(1) of this section and 
     section 1128A(c)(2),
       ``(8) the disposition during such year of hearings filed 
     pursuant to sections 1140(c)(1) and 1128A(c)(2), and
       ``(9) the total amount of civil money penalties under this 
     section deposited into the Federal Old-Age and Survivors 
     Insurance Trust Fund during the year.''.
       (l) Prohibition of Misuse of Department of the Treasury 
     Names, Symbols, Etc.--
       (1) General rule.--Subchapter II of chapter 3 of title 31, 
     United States Code, is amended by adding at the end thereof 
     the following new section:

     ``Sec. 333. Prohibition of misuse of Department of the 
       Treasury names, symbols, etc.

       ``(a) General Rule.--No person may use, in connection with, 
     or as a part of, any advertisement, solicitation, business 
     activity, or product, whether alone or with other words, 
     letters, symbols, or emblems--
       ``(1) the words `Department of the Treasury', or the name 
     of any service, bureau, office, or other subdivision of the 
     Department of the Treasury,
       ``(2) the titles `Secretary of the Treasury' or `Treasurer 
     of the United States' or the title of any other officer or 
     employee of the Department of the Treasury,
       ``(3) the abbreviations or initials of any entity referred 
     to in paragraph (1),
       ``(4) the words `United States Savings Bond' or the name of 
     any other obligation issued by the Department of the 
     Treasury,
       ``(5) any symbol or emblem of an entity referred to in 
     paragraph (1) (including the design of any envelope or 
     stationary used by such an entity), and
       ``(6) any colorable imitation of any such words, titles, 
     abbreviations, initials, symbols, or emblems,

     in a manner which could reasonably be interpreted or 
     construed as conveying the false impression that such 
     advertisement, solicitation, business activity, or product is 
     in any manner approved, endorsed, sponsored, or authorized 
     by, or associated with, the Department of the Treasury or any 
     entity referred to in paragraph (1) or any officer or 
     employee thereof.
       ``(b) Treatment of Disclaimers.--Any determination of 
     whether a person has violated the provisions of subsection 
     (a) shall be made without regard to any use of a disclaimer 
     of affiliation with the United States Government or any 
     particular agency or instrumentality thereof.
       ``(c) Civil Penalty.--
       ``(1) In general.--The Secretary of the Treasury may impose 
     a civil penalty on any person who violates the provisions of 
     subsection (a).
       ``(2) Amount of penalty.--The amount of the civil penalty 
     imposed by paragraph (1) shall not exceed $5,000 for each use 
     of any material in violation of subsection (a). If such use 
     is in a broadcast or telecast, the preceding sentence shall 
     be applied by substituting `$25,000' for `$5,000'.
       ``(3) Time limitations.--
       ``(A) Assessments.--The Secretary of the Treasury may 
     assess any civil penalty under paragraph (1) at any time 
     before the end of the 3-year period beginning on the date of 
     the violation with respect to which such penalty is imposed.
       ``(B) Civil action.--The Secretary of the Treasury may 
     commence a civil action to recover any penalty imposed under 
     this subsection at any time before the end of the 2-year 
     period beginning on the date on which such penalty was 
     assessed.
       ``(4) Coordination with subsection (d).--No penalty may be 
     assessed under this subsection with respect to any violation 
     after a criminal proceeding with respect to such violation 
     has been commenced under subsection (d).
       ``(d) Criminal Penalty.--
       ``(1) In general.--If any person knowingly violates 
     subsection (a), such person shall, upon conviction thereof, 
     be fined not more than $10,000 for each such use or 
     imprisoned not more than 1 year, or both. If such use is in a 
     broadcast or telecast, the preceding sentence shall be 
     applied by substituting `$50,000' for `$10,000'.
       ``(2) Time limitations.--No person may be prosecuted, 
     tried, or punished under paragraph (1) for any violation of 
     subsection (a) unless the indictment is found or the 
     information instituted during the 3-year period beginning on 
     the date of the violation.
       ``(3) Coordination with subsection (c).--No criminal 
     proceeding may be commenced under this subsection with 
     respect to any violation if a civil penalty has previously 
     been assessed under subsection (c) with respect to such 
     violation.''
       (2) Clerical amendment.--The analysis for chapter 3 of 
     title 31, United States Code, is amended by adding after the 
     item relating to section 332 the following new item:

``333. Prohibition of misuse of Department of the Treasury names, 
              symbols, etc.''.

       (3) Report.--Not later than May 1, 1996, the Secretary of 
     the Treasury shall submit a report to the Committee on Ways 
     and Means of the House of Representatives and the Committee 
     on Finance of the Senate on the implementation of the 
     amendments made by this section. Such report shall include 
     the number of cases in which the Secretary has notified 
     persons of violations of section 333 of title 31, United 
     States Code (as added by subsection (a)), the number of 
     prosecutions commenced under such section, and the total 
     amount of the penalties collected in such prosecutions.
       (m) Effective Date.--The amendments made by this section 
     shall apply with respect to violations occurring after the 
     date of the enactment of this Act.

     SEC. 214. INCREASED PENALTIES FOR UNAUTHORIZED DISCLOSURE OF 
                   SOCIAL SECURITY INFORMATION.

       (a) Unauthorized Disclosure.--Section 1106(a) of the Social 
     Security Act (42 U.S.C. 1306(a)) is amended--
       (1) by striking ``misdemeanor'' and inserting ``felony'';
       (2) by striking ``$1,000'' and inserting ``$10,000 for each 
     occurrence of a violation''; and
       (3) by striking ``one year'' and inserting ``5 years''.
       (b) Unauthorized Disclosure by Fraud.--Section 1107(b) of 
     such Act (42 U.S.C. 1307(b)) is amended--
       (1) by inserting ``social security account number,'' after 
     ``information as to the'';
       (2) by striking ``misdemeanor'' and inserting ``felony'';
       (3) by striking ``$1,000'' and inserting ``$10,000 for each 
     occurrence of a violation''; and
       (4) by striking ``one year'' and inserting ``5 years''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to violations occurring on or after the date of 
     the enactment of this Act.

     SEC. 215. INCREASE IN AUTHORIZED PERIOD FOR EXTENSION OF TIME 
                   TO FILE ANNUAL EARNINGS REPORT.

       (a) In General.--Section 203(h)(1)(A) of the Social 
     Security Act (42 U.S.C. 403(h)(1)(A)) is amended in the last 
     sentence by striking ``three months'' and inserting ``four 
     months''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply with respect to reports of earnings for taxable 
     years ending on or after December 31, 1994.

     SEC. 216. EXTENSION OF DISABILITY INSURANCE PROGRAM 
                   DEMONSTRATION PROJECT AUTHORITY.

       (a) In General.--Section 505 of the Social Security 
     Disability Amendments of 1980 (Public Law 96-265), as amended 
     by section 12101 of the Consolidated Omnibus Budget 
     Reconciliation Act of 1985 (Public Law 99-272), section 10103 
     of the Omnibus Budget Reconciliation Act of 1989 (Public Law 
     101-239), and section 5120 of the Omnibus Budget 
     Reconciliation Act of 1990 (Public Law 101-508) is further 
     amended--
       (1) in paragraph (3) of subsection (a), by striking ``June 
     10, 1993'' and inserting ``June 10, 1996'';
       (2) in paragraph (4) of subsection (a), by striking 
     ``1992'' and inserting ``1995''; and
       (3) in subsection (c), by striking ``October 1, 1993'' and 
     inserting ``October 1, 1996''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 217. CROSS-MATCHING OF SOCIAL SECURITY ACCOUNT NUMBER 
                   INFORMATION AND EMPLOYER IDENTIFICATION NUMBER 
                   INFORMATION MAINTAINED BY THE DEPARTMENT OF 
                   AGRICULTURE.

       (a) Social Security Account Number Information.--Clause 
     (iii) of section 205(c)(2)(C) of the Social Security Act (42 
     U.S.C. 405(c)(2)(C)) (as added by section 1735(a)(3) of the 
     Food, Agriculture, Conservation, and Trade Act of 1990 
     (Public Law 101-624; 104 Stat. 3791)) is amended--
       (1) by inserting ``(I)'' after ``(iii)''; and
       (2) by striking ``The Secretary of Agriculture shall 
     restrict'' and all that follows and inserting the following:
       ``(II) The Secretary of Agriculture may share any 
     information contained in any list referred to in subclause 
     (I) with any other agency or instrumentality of the United 
     States which otherwise has access to social security account 
     numbers in accordance with this subsection or other 
     applicable Federal law, except that the Secretary of 
     Agriculture may share such information only to the extent 
     that such Secretary determines such sharing would assist in 
     verifying and matching such information against information 
     maintained by such other agency or instrumentality. Any such 
     information shared pursuant to this subclause may be used by 
     such other agency or instrumentality only for the purpose of 
     effective administration and enforcement of the Food Stamp 
     Act of 1977 or for the purpose of investigation of violations 
     of other Federal laws or enforcement of such laws.
       ``(III) The Secretary of Agriculture, and the head of any 
     other agency or instrumentality referred to in this 
     subclause, shall restrict, to the satisfaction of the 
     Secretary of Health and Human Services, access to social 
     security account numbers obtained pursuant to this clause 
     only to officers and employees of the United States whose 
     duties or responsibilities require access for the purposes 
     described in subclause (II).
       ``(IV) The Secretary of Agriculture, and the head of any 
     agency or instrumentality with which information is shared 
     pursuant to clause (II), shall provide such other safeguards 
     as the Secretary of Health and Human Services determines to 
     be necessary or appropriate to protect the confidentiality of 
     the social security account numbers.''.
       (b) Employer Identification Number Information.--Subsection 
     (f) of section 6109 of the Internal Revenue Code of 1986 (as 
     added by section 1735(c) of the Food, Agriculture, 
     Conservation, and Trade Act of 1990 (Public Law 101-624; 104 
     Stat. 3792)) (relating to access to employer identification 
     numbers by Secretary of Agriculture for purposes of Food 
     Stamp Act of 1977) is amended--
       (1) by striking paragraph (2) and inserting the following:
       ``(2) Sharing of information and safeguards.--
       ``(A) Sharing of information.--The Secretary of Agriculture 
     may share any information contained in any list referred to 
     in paragraph (1) with any other agency or instrumentality of 
     the United States which otherwise has access to employer 
     identification numbers in accordance with this section or 
     other applicable Federal law, except that the Secretary of 
     Agriculture may share such information only to the extent 
     that such Secretary determines such sharing would assist in 
     verifying and matching such information against information 
     maintained by such other agency or instrumentality. Any such 
     information shared pursuant to this subparagraph may be used 
     by such other agency or instrumentality only for the purpose 
     of effective administration and enforcement of the Food Stamp 
     Act of 1977 or for the purpose of investigation of violations 
     of other Federal laws or enforcement of such laws.
       ``(B) Safeguards.--The Secretary of Agriculture, and the 
     head of any other agency or instrumentality referred to in 
     subparagraph (A), shall restrict, to the satisfaction of the 
     Secretary of the Treasury, access to employer identification 
     numbers obtained pursuant to this subsection only to officers 
     and employees of the United States whose duties or 
     responsibilities require access for the purposes described in 
     subparagraph (A). The Secretary of Agriculture, and the head 
     of any agency or instrumentality with which information is 
     shared pursuant to subparagraph (A), shall provide such other 
     safeguards as the Secretary of the Treasury determines to be 
     necessary or appropriate to protect the confidentiality of 
     the employer identification numbers.'';
       (2) in paragraph (3), by striking ``by the Secretary of 
     Agriculture pursuant to this subsection'' and inserting 
     ``pursuant to this subsection by the Secretary of Agriculture 
     or the head of any agency or instrumentality with which 
     information is shared pursuant to paragraph (2)'', and by 
     striking ``social security account numbers'' and inserting 
     ``employer identification numbers''; and
       (3) in paragraph (4), by striking ``by the Secretary of 
     Agriculture pursuant to this subsection'' and inserting 
     ``pursuant to this subsection by the Secretary of Agriculture 
     or any agency or instrumentality with which information is 
     shared pursuant to paragraph (2)''.

     SEC. 218. CERTAIN TRANSFERS TO RAILROAD RETIREMENT ACCOUNT 
                   MADE PERMANENT.

       Subsection (c)(1)(A) of section 224 of the Railroad 
     Retirement Solvency Act of 1983 (relating to section 72(r) 
     revenue increase transferred to certain railroad accounts) is 
     amended by striking ``with respect to benefits received 
     before October 1, 1992''.

     SEC. 219. AUTHORIZATION FOR USE OF SOCIAL SECURITY ACCOUNT 
                   NUMBERS BY DEPARTMENT OF LABOR IN 
                   ADMINISTRATION OF FEDERAL WORKERS' COMPENSATION 
                   LAWS.

       Section 205(c)(2)(C) of the Social Security Act (42 U.S.C. 
     405(c)(2)(C)) is amended by adding at the end the following 
     new clause:
       ``(ix) In the administration of the provisions of chapter 
     81 of title 5, United States Code, and the Longshore and 
     Harbor Workers' Compensation Act (33 U.S.C. 901 et seq.), the 
     Secretary of Labor may require by regulation that any person 
     filing a notice of injury or a claim for benefits under such 
     provisions provide as part of such notice or claim such 
     person's social security account number, subject to the 
     requirements of this clause. No officer or employee of the 
     Department of Labor shall have access to any such number for 
     any purpose other than the establishment of a system of 
     records necessary for the effective administration of such 
     provisions. The Secretary of Labor shall restrict, to the 
     satisfaction of the Secretary of Health and Human Services, 
     access to social security account numbers obtained pursuant 
     to this clause to officers and employees of the United States 
     whose duties or responsibilities require access for the 
     administration or enforcement of such provisions. The 
     Secretary of Labor shall provide such other safeguards as the 
     Secretary of Health and Human Services determines to be 
     necessary or appropriate to protect the confidentiality of 
     the social security account numbers.''.

     SEC. 220. COVERAGE UNDER FICA OF FEDERAL EMPLOYEES 
                   TRANSFERRED TEMPORARILY TO INTERNATIONAL 
                   ORGANIZATIONS.

       (a) Treament of Service in the Employ of International 
     Organizations by Certain Transferred Federal Employees.--
       (1) In general.--Section 3121 of the Internal Revenue Code 
     of 1986 (relating to definitions) is amended by adding at the 
     end the following new subsection:
       ``(y) Service in the Employ of International Organizations 
     by Certain Transferred Federal Employees.--
       ``(1) In general.--For purposes of this chapter, service 
     performed in the employ of an international organization by 
     an individual pursuant to a transfer of such individual to 
     such international organization pursuant to section 3582 of 
     title 5, United States Code, shall constitute `employment' 
     if--
       ``(A) immediately before such transfer, such individual 
     performed service with a Federal agency which constituted 
     `employment' under subsection (b) for purposes of the taxes 
     imposed by sections 3101(a) and 3111(a), and
       ``(B) such individual would be entitled, upon separation 
     from such international organization and proper application, 
     to reemployment with such Federal agency under such section 
     3582.
       ``(2) Definitions.--For purposes of this subsection--
       ``(A) Federal agency.--The term `Federal agency' means an 
     agency, as defined in section 3581(1) of title 5, United 
     States Code.
       ``(B) International organization.--The term `international 
     organization' has the meaning provided such term by section 
     3581(3) of title 5, United States Code.''
       (2) Contributions by federal agency.--Section 3122 of such 
     Code (relating to Federal service) is amended by inserting 
     after the first sentence the following new sentence: ``In the 
     case of the taxes imposed by this chapter with respect to 
     service performed in the employ of an international 
     organization pursuant to a transfer to which the provisions 
     of section 3121(y) are applicable, the determination of the 
     amount of remuneration for such service, and the return and 
     payment of the taxes imposed by this chapter, shall be made 
     by the head of the Federal agency from which the transfer was 
     made.''
       (3) Collection of employee contributions.--Section 3102 of 
     such Code (relating to deduction of tax from wages) is 
     amended by adding at the end the following new subsection:
       ``(e) Special Rule for Certain Transferred Federal 
     Employees.--In the case of any payments of wages for service 
     performed in the employ of an international organization 
     pursuant to a transfer to which the provisions of section 
     3121(y) are applicable--
       ``(1) subsection (a) shall not apply,
       ``(2) the head of the Federal agency from which the 
     transfer was made shall separately include on the statement 
     required under section 6051--
       ``(A) the amount determined to be the amount of the wages 
     for such service, and
       ``(B) the amount of the tax imposed by section 3101 on such 
     payments, and
       ``(3) the tax imposed by section 3101 on such payments 
     shall be paid by the employee.''
       (4) Exclusion from treatment as trade or business.--
     Paragraph (2)(C) of section 1402(c) of such Code (defining 
     trade or business) is amended by adding at the end the 
     following: ``except service which constitutes `employment' 
     under section 3121(y),''.
       (5) Conforming amendment.--Paragraph (15) of section 
     3121(b) of such Code is amended by inserting ``, except 
     service which constitutes `employment' under subsection (y)'' 
     after ``organization''.
       (b) Amendments to the Social Security Act.--
       (1) In general.--Section 210 of the Social Security Act (42 
     U.S.C. 410) is amended by adding at the end the following new 
     subsection:


   ``service in the employ of international organizations by certain 
                     transferred federal employees

       ``(r)(1) For purposes of this title, service performed in 
     the employ of an international organization by an individual 
     pursuant to a transfer of such individual to such 
     international organization pursuant to section 3582 of title 
     5, United States Code, shall constitute `employment' if--
       ``(A) immediately before such transfer, such individual 
     performed service with a Federal agency which constituted 
     `employment' as defined in subsection (a), and
       ``(B) such individual would be entitled, upon separation 
     from such international organization and proper application, 
     to reemployment with such Federal agency under such section 
     3582.
       ``(2) For purposes of this subsection:
       ``(A) The term `Federal agency' means an agency, as defined 
     in section 3581(1) of title 5, United States Code.
       ``(B) The term `international organization' has the meaning 
     provided such term by section 3581(3) of title 5, United 
     States Code.''
       (2) Exclusion from treatment as trade or business.--Section 
     211(c)(2)(C) of such Act (42 U.S.C. 411(c)(2)(C)) is amended 
     by inserting before the semicolon the following ``, except 
     service which constitutes `employment' under section 
     210(r)''.
       (3) Conforming amendment.--Section 210(a)(15) of such Act 
     (42 U.S.C. 410(a)(15)) is amended by inserting ``, except 
     service which constitutes `employment' under subsection (r)'' 
     before the semicolon.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to service performed after the 
     calendar quarter following the calendar quarter in which the 
     date of the enactment of this Act occurs.

     SEC. 221. EXTEND THE FICA TAX EXEMPTION AND CERTAIN TAX RULES 
                   TO INDIVIDUALS WHO ENTER THE UNITED STATES 
                   UNDER A VISA ISSUED UNDER SECTION 101 OF THE 
                   IMMIGRATION AND NATIONALITY ACT.

       (a) Amendments to the Internal Revenue Code of 1986.--
       (1) The following provisions of the Internal Revenue Code 
     of 1986 are each amended by striking ``(J), or (M)'' each 
     place it appears and inserting ``(J), (M), or (Q)'':
       (A) Section 871(c).
       (B) Section 1441(b).
       (C) Section 3121(b)(19).
       (D) Section 3231(e)(1).
       (E) Section 3306(c)(19).
       (2) Paragraph (3) of section 872(b) of such Code is amended 
     by striking ``(F) or (J)'' and inserting ``(F), (J), or 
     (Q)''.
       (3) Paragraph (5) of section 7701(b) of such Code is 
     amended by striking ``subparagraph (J)'' in subparagraphs 
     (C)(i) and (D)(i)(II) and inserting ``subparagraph (J) or 
     (Q)''.
       (b) Amendment to Social Security Act.--Paragraph (19) of 
     section 210(a) of the Social Security Act is amended by 
     striking ``(J), or (M)'' each place it appears and inserting 
     ``(J), (M), or (Q)''.
       (c) Effective Date.--The amendments made by this subsection 
     shall take effect with the calendar quarter following the 
     date of the enactment of this Act.

     SEC. 222. STUDY OF RISING COSTS OF DISABILITY INSURANCE 
                   BENEFITS.

       (a) In General.--As soon as practicable after the date of 
     the enactment of this Act, the Secretary of Health and Human 
     Services shall conduct a comprehensive study of the reasons 
     for rising costs payable from the Federal Disability 
     Insurance Trust Fund.
       (b) Matters to Be Included in Study.--In conducting the 
     study under this section, the Secretary shall--
       (1) determine the relative importance of the following 
     factors in increasing the costs payable from the Trust Fund:
       (A) increased numbers of applications for benefits;
       (B) higher rates of benefit allowances; and
       (C) decreased rates of benefit terminations; and
       (2) identify, to the extent possible, underlying social, 
     economic, demographic, programmatic, and other trends 
     responsible for changes in disability benefit applications, 
     allowances, and terminations.
       (c) Report.--Not later than December 31, 1994, the 
     Secretary shall transmit a report to the Committee on Ways 
     and Means of the House of Representatives and the Committee 
     on Finance of the Senate setting forth the results of the 
     study conducted under this section, together with any 
     recommendations for legislative changes which the Secretary 
     determines appropriate.

     SEC. 223. COMMISSION ON CHILDHOOD DISABILITY.

       (a) Establishment of Commission.--The Secretary of Health 
     and Human Services (in this section referred to as the 
     ``Secretary'') shall appoint a Commission on the Evaluation 
     of Disability in Children (in this section referred to as the 
     ``Commission'').
       (b) Appointment of Members.--(1) The Secretary shall 
     appoint not less than 9 but not more than 15 members to the 
     Commission, including--
       (A) recognized experts in the field of medicine, whose work 
     involves--
       (i) the evaluation and treatment of disability in children,
       (ii) the study of congenital, genetic, or perinatal 
     disorders in children, or
       (iii) the measurement of developmental milestones and 
     developmental deficits in children; and
       (B) recognized experts in the fields of--
       (i) psychology,
       (ii) education and rehabilitation,
       (iii) law,
       (iv) the administration of disability programs,
       (v) social insurance (including health insurance), and
       (vi) other fields of expertise that the Secretary 
     determines to be appropriate.
       (2) Members shall be appointed by January 1, 1995, without 
     regard to the provisions of title 5, United States Code, 
     governing appointments to competitive service.
       (3) Members appointed under this subsection shall serve for 
     a term equivalent to the duration of the Commission.
       (4) The Secretary shall designate a member of the 
     Commission to serve as Chair of the Commission for a term 
     equivalent to the duration of the Commission.
       (c) Administrative Provisions.--(1) Service as a member of 
     the Commission by an individual who is not otherwise a 
     Federal employee shall not be considered service in an 
     appointive or elective position in the Federal Government for 
     the purposes of title 5, United States Code.
       (2) Each member of the Commission who is not a full-time 
     Federal employee shall be paid compensation at a rate equal 
     to the daily equivalent of the rate of basic pay in effect 
     for Level IV of the Executive Schedule for each day 
     (including travel time) the member attends meetings or 
     otherwise performs the duties of the Commission.
       (3) While away from their homes or regular places of 
     business on the business of the Commission, each member who 
     is not a full-time Federal employee may be allowed travel 
     expenses, including per diem in lieu of subsistence, as 
     authorized by section 5703 of title 5, United States Code, 
     for persons employed intermittently in the Government 
     service.
       (d) Assistance to Commission.--The Commission may engage 
     individuals skilled in medical and other aspects of childhood 
     disability to provide such technical assistance as may be 
     necessary to carry out the functions of the Commission. The 
     Secretary shall make available to the Commission such 
     secretarial, clerical, and other assistance as the Commission 
     may require to carry out the functions of the Commission.
       (e) Study by the Commission.--(1) The Commission shall 
     conduct a study, in consultation with the National Academy of 
     Sciences, of the effects of the definition of ``disability'' 
     under title XVI of the Social Security Act (42 U.S.C. 1382 et 
     seq.) in effect on the date of enactment of this Act, as such 
     definition applies to determining whether a child under the 
     age of 18 is eligible to receive benefits under such title, 
     the appropriateness of such definition, and the advantages 
     and disadvantages of using any alternative definition of 
     disability in determining whether a child under age 18 is 
     eligible to receive benefits under such title.
       (2) The study described in paragraph (1) shall include 
     issues of--
       (A) whether the need by families for assistance in meeting 
     high costs of medical care for children with serious physical 
     or mental impairments, whether or not they are eligible for 
     disability benefits under title XVI of the Social Security 
     Act, might appropriately be met through expansion of Federal 
     health assistance programs (including the program of medical 
     assistance under title XIX of such Act);
       (B) the feasibility of providing benefits to children 
     through noncash means, including but not limited to vouchers, 
     debit cards, and electronic benefit transfer systems;
       (C) the extent to which the Social Security Administration 
     can involve private organizations in an effort to increae the 
     provision of social services, education, and vocational 
     instruction with the aim of promoting independence and the 
     ability to engage in substantial gainful activity;
       (D) the feasibility of providing retroactive supplemental 
     security income benefits pursuant to the decision in Sullivan 
     v. Zebley, 110 S. Ct. 2658 (1990), on a prorated basis or by 
     means of a packaged trust;
       (E) methods to increase the extent to which benefits are 
     used in the effort to assist the child achieve independence 
     and engage in substantial gainful activity; and
       (F) such other issues that the Secretary determines to be 
     appropriate.
       (f) Report.--Not later than November 30, 1995, the 
     Commission shall prepare a report and submit such report to 
     the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate 
     which shall summarize the results of the study described in 
     subsection (e) and include any recommendations that the 
     Commission determines to be appropriate.

     SEC. 224. DISREGARD DEEMED INCOME AND RESOURCES OF INELIGIBLE 
                   SPOUSE IN DETERMINING CONTINUED ELIGIBILITY 
                   UNDER SECTION 1619(b).

       (a) In General.--Section 1619(b)(2) of the Social Security 
     Act (42 U.S.C. 1382h(b)(2)) is amended by adding at the end 
     the following:
       ``(C)(i)(I) For purposes of paragraph (1), in determining 
     the earnings of an individual whose spouse is not an eligible 
     individual, there shall be disregarded the net income of the 
     spouse to the extent such net income does not exceed an 
     amount equal to twice the threshold amount determined for the 
     individual.
       ``(II) As used in subclause (I), the term `threshold 
     amount' means, with respect to an individual--
       ``(aa) $85, plus twice the amount of benefits payable under 
     this title (including federally administered State 
     supplementary payments) to an individual who is living in his 
     or her own household and who has no other income, plus the 
     average amount expended per individual, under the State plan 
     approved under title XIX by the State in which the individual 
     resides, on individuals who are recipients of benefits under 
     this title by reason of disability; or
       ``(bb) if the gross earnings of the individual exceeds the 
     amount described in item (aa), the amount that would be 
     sufficient to allow the individual to provide for himself or 
     herself a reasonable equivalent of benefits and services 
     described in paragraph (1)(D).
       ``(ii) For purposes of paragraph (1)(A), in determining the 
     resources of an individual whose spouse is not an eligible 
     individual, there shall be disregarded the resources of the 
     spouse to the extent the amount of such resources does not 
     exceed the community spouse resource allowance (as defined in 
     section 1924(f)(2)) of the State in which the individual 
     resides.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on October 1, 1995.

     SEC. 225. PLANS FOR ACHIEVING SELF-SUPPORT NOT DISAPPROVED 
                   WITHIN 60 DAYS TO BE DEEMED APPROVED.

       (a) Amendments to Income Exclusion Rules.--Section 
     1612(b)(4) of the Social Security Act (42 U.S.C. 
     1382a(b)(4)(A)) is amended in each of subparagraphs (A) and 
     (B) by inserting ``and, for purposes of this clause, a 
     completed plan for achieving self-support which is not 
     disapproved by the Board within 60 days after the date of 
     submission shall be deemed to be approved by the Board until 
     subsequently disapproved by the Board (with appropriate 
     notification to the individual),'' after ``plan,''.
       (b) Amendment to Resource Exclusion Rule.--Section 
     1613(a)(4) of such Act (42 U.S.C. 1382b(a)(4)) is amended by 
     inserting ``, and, for purposes of this paragraph, a 
     completed plan for achieving self-support which is not 
     disapproved by the Board within 60 days after the date of 
     submission shall be deemed to be approved by the Board until 
     6 months after subsequently disapproved by the Board (with 
     appropriate notification to the individual)'' after ``such 
     plan''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 1995.

     SEC. 226. TEMPORARY AUTHORITY TO APPROVE A LIMITED NUMBER OF 
                   PLANS FOR ACHIEVING SELF-SUPPORT THAT INCLUDE 
                   HOUSING GOALS.

       (a) In General.--During the 42-month period that begins on 
     January 1, 1995, the Board may, under title XVI of the Social 
     Security Act, approve not more than 20 percent of the plans 
     for achieving self-support that include a housing goal.
       (b) Report.--Within 12 months after the end of the 5-year 
     period that begins on January 1, 1995, the Board shall submit 
     to the Congress a report on the activities under subsection 
     (a).

     SEC. 227. REGULATIONS REGARDING COMPLETION OF PLANS FOR 
                   ACHIEVING SELF-SUPPORT.

       (a) In General.--Section 1633 of the Social Security Act 
     (42 U.S.C. 1383b) is amended by adding at the end the 
     following:
       ``(d) The Board shall establish by regulation time limits 
     and other criteria related to individuals' plans for 
     achieving self-support, that take into account the difficulty 
     of achieving self-support based on the needs of individuals 
     and the goals of the plan.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on January 1, 1995.

     SEC. 228. TREATMENT OF CERTAIN GRANT, SCHOLARSHIP, OR 
                   FELLOWSHIP INCOME AS EARNED INCOME FOR SSI 
                   PURPOSES.

       (a) In General.--Section 1612(a)(1) of the Social Security 
     Act (42 U.S.C. 1382a(a)(1)) is amended--
       (1) by striking ``and'' at the end of subparagraph (D); and
       (2) by adding at the end the following:
       ``(F) any grant, scholarship, or fellowship.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to eligibility and benefit determinations for any 
     month that begins after the 2nd month after the month in 
     which this Act is enacted.

     SEC. 229. SSI ELIGIBILITY FOR STUDENTS TEMPORARILY ABROAD.

       (a) In General.--Section 1611(f) of the Social Security Act 
     (42 U.S.C. 1382(f)) is amended--
       (1) by inserting ``(1)'' after ``(f)''; and
       (2) by adding after and below the end the following:
       ``(2) The first sentence of paragraph (1) shall not apply 
     to any individual who--
       ``(A) was eligible to receive a benefit under this title 
     for the month immediately preceding the first month during 
     all of which the individual was outside the United States; 
     and
       ``(B) demonstrates to the satisfaction of the Board that 
     the absence of the individual from the United States is--
       ``(i) temporary; and
       ``(ii) for the purpose of conducting studies as part of an 
     educational program that is designed to prepare the 
     individual for gainful employment, and is sponsored by a 
     school, college, or university in the United States.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on January 1, 1995.

     SEC. 230. DISREGARD OF COST-OF-LIVING INCREASES FOR CONTINUED 
                   ELIGIBILITY FOR WORK INCENTIVES.

       (a) In General.--Section 1619(b)(1)(B) of the Social 
     Security Act (42 U.S.C. 1382h(b)(1)(B)) is amended by 
     inserting ``and increases pursuant to section 215(i) in the 
     level of monthly insurance benefits to which the individual 
     is entitled under title II that occur while such individual 
     is considered to be receiving supplemental security income 
     benefits by reason of this subsection'' after ``earnings''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to eligibility determinations for months after 
     December 1994.

     SEC. 231. EXPANSION OF THE AUTHORITY OF THE SOCIAL SECURITY 
                   ADMINISTRATION TO PREVENT, DETECT, AND 
                   TERMINATE FRAUDULENT CLAIMS FOR SSI BENEFITS.

       (a) Prevention of Fraud in the SSI Program by Translators 
     of Foreign Languages.--
       (1) In general.--Section 1631(e) of the Social Security Act 
     (42 U.S.C. 1383(e)) is amended by inserting after paragraph 
     (3) the following:
       ``(4) A translation into English by a third party of a 
     statement made in a foreign language by an applicant for or 
     recipient of benefits under this title shall not be regarded 
     as reliable unless the third party, under penalty of 
     perjury--
       ``(A) certifies that the translation is accurate; and
       ``(B) discloses the nature and scope of the relationship 
     between the third party and the applicant or recipient, as 
     the case may be.''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall take effect on October 1, 1994.
       (b) Civil Monetary Penalties, Assessments, and Exclusions 
     for Title XVI.--
       (1) In general.--Title XI of the Social Security Act (42 
     U.S.C. 1301-1320b-14) is amended by inserting after section 
     1128B the following:

     ``SEC. 1129. CIVIL MONETARY PENALTIES AND ASSESSMENTS FOR 
                   TITLE XVI.

       ``(a) Any person (including an organization, agency, or 
     other entity) who makes, or causes to be made, a statement or 
     representation of a material fact for use in determining any 
     initial or continuing right to benefits or payments under 
     title XVI that the person knows or should know is false or 
     misleading or knows or should know omits a material fact 
     shall be subject to, in addition to any other penalties that 
     may be prescribed by law, a civil money penalty of not more 
     than $5,000 for each such statement or representation. Such 
     person also shall be subject to an assessment, in lieu of 
     damages sustained by the United States because of such 
     statement or representation, of not more than twice the 
     amount of benefits or payments paid as a result of such a 
     statement or representation. In addition, the Board may make 
     a determination in the same proceeding to exclude the person 
     from participation in the programs under title XVIII and to 
     direct the appropriate State agency to exclude the person 
     from participation in any State health care program.
       ``(b)(1) The Board may initiate a proceeding to determine 
     whether to impose a civil money penalty, assessment, or 
     exclusion under subsection (a) only as authorized by the 
     Attorney General pursuant to procedures agreed upon by the 
     Board and the Attorney General. The Board may not initiate an 
     action under this section with respect to any violation 
     described in subsection (a) later than 6 years after the date 
     the violation was committed. The Board may initiate an action 
     under this section by serving notice of the action in any 
     manner authorized by Rule 4 of the Federal Rules of Civil 
     Procedure.
       ``(2) The Board shall not make a determination adverse to 
     any person under this section until the person has been given 
     written notice and an opportunity for the determination to be 
     made on the record after a hearing at which the person is 
     entitled to be represented by counsel, to present witnesses, 
     and to cross-examine witnesses against the person.
       ``(3) In a proceeding under this section which--
       ``(A) is against a person who has been convicted (whether 
     upon a verdict after trial or upon a plea of guilty or nolo 
     contendere) of a Federal crime charging fraud or false 
     statements; and
       ``(B) involves the same transaction as in the criminal 
     action;

     the person is estopped from denying the essential elements of 
     the criminal offense.
       ``(4) The official conducting a hearing under this section 
     may sanction a person, including any party or attorney, for 
     failing to comply with an order or procedure, failing to 
     defend an action, or other misconduct as would interfere with 
     the speedy, orderly, or fair conduct of the hearing. Such 
     sanction shall reasonably relate to the severity and nature 
     of the failure or misconduct. Such sanction may include--
       ``(A) in the case of refusal to provide or permit 
     discovery, drawing negative factual inference or treating 
     such refusal as an admission by deeming the matter, or 
     certain facts, to be established;
       ``(B) prohibiting a party from introducing certain evidence 
     or otherwise supporting a particular claim or defense;
       ``(C) striking pleadings, in whole or in part;
       ``(D) staying the proceedings;
       ``(E) dismissal of the action;
       ``(F) entering a default judgment;
       ``(G) ordering the party or attorney to pay attorneys' fees 
     and other costs caused by the failure or misconduct; and
       ``(H) refusing to consider any motion or other action which 
     is not filed in a timely manner.
       ``(c) In determining the amount or scope of any penalty, 
     assessment, or exclusion imposed pursuant to this section, 
     the Board shall take into account--
       ``(1) the nature of the statements and representations 
     referred to in subsection (a) and the circumstances under 
     which they occurred;
       ``(2) the degree of culpability, history of prior offenses, 
     and financial condition of the person committing the offense; 
     and
       ``(3) such other matters as justice may require.
       ``(d)(1) Any person adversely affected by a determination 
     of the Board under this section may obtain a review of such 
     determination in the United States Court of Appeals for the 
     circuit in which the person resides, or in which the 
     statement or representation referred to in subsection (a) was 
     made, by filing in such court (within 60 days following the 
     date the person is notified of the Board's determination) a 
     written petition requesting that the determination be 
     modified or set aside. A copy of the petition shall be 
     forthwith transmitted by the clerk of the court to the Board, 
     and thereupon the Board shall file in the court the record in 
     the proceeding as provided in section 2112 of title 28, 
     United States Code. Upon such filing, the court shall have 
     jurisdiction of the proceeding and of the question determined 
     therein, and shall have the power to make and enter upon the 
     pleadings, testimony, and proceedings set forth in such 
     record a decree affirming, modifying, remanding for further 
     consideration, or setting aside, in whole or in part, the 
     determination of the Board and enforcing the same to the 
     extent that such order is affirmed or modified. No objection 
     that has not been urged before the Board shall be considered 
     by the court, unless the failure or neglect to urge such 
     objection shall be excused because of extraordinary 
     circumstances.
       ``(2) The findings of the Board with respect to questions 
     of fact, if supported by substantial evidence on the record 
     considered as a whole, shall be conclusive in the review 
     described in paragraph (1). If any party shall apply to the 
     court for leave to adduce additional evidence and shall show 
     to the satisfaction of the court that such additional 
     evidence is material and that there were reasonable grounds 
     for the failure to adduce such evidence in the hearing before 
     the Board, the court may order such additional evidence to be 
     taken before the Board and to be made a part of the record. 
     The Board may modify its findings as to the facts, or make 
     new findings, by reason of additional evidence so taken and 
     filed, and the Board shall file with the court such modified 
     or new findings, which findings with respect to questions of 
     fact, if supported by substantial evidence on the record 
     considered as a whole shall be conclusive, and his 
     recommendations, if any, for the modification or setting 
     aside of his original order.
       ``(3) Upon the filing of the record with the Board's 
     original or modified order, the jurisdiction of the court 
     shall be exclusive and its judgment and decree shall be 
     final, except that the same shall be subject to review by the 
     Supreme Court of the United States, as provided in section 
     1254 of title 28, United States Code.
       ``(e)(1) Civil money penalties and assessments imposed 
     under this section may be compromised by the Board and may be 
     recovered--
       ``(A) in a civil action in the name of the United States 
     brought in United States district court for the district 
     where the statement or representation referred to in 
     subsection (a) was made, or where the person resides, as 
     determined by the Board;
       ``(B) by means of reduction in tax refunds to which the 
     person is entitled, based on notice to the Secretary of the 
     Treasury as permitted under section 3720A of title 31, United 
     States Code;
       ``(C) by decrease of any payment under title XVI to which 
     the person is entitled, notwithstanding section 207 of this 
     Act, as made applicable to this title by reason of section 
     1631(d)(1);
       ``(D) by authorities provided under the Debt Collection Act 
     of 1982, as amended, to the extent applicable to debts 
     arising under the Social Security Act;
       ``(E) by deduction of the amount of such penalty or 
     assessment, when finally determined, or the amount agreed 
     upon in compromise, from any sum then or later owing by the 
     United States to the person against whom the penalty or 
     assessment has been assessed; or
       ``(F) by any combination of the foregoing.
       ``(f) A determination by the Board to impose a penalty, 
     assessment, or exclusion under this section shall be final 
     upon the expiration of the 60-day period referred to in 
     subsection (d). Matters that were raised or that could have 
     been raised in a hearing before the Board or in an appeal 
     pursuant to subsection (d) may not be raised as a defense to 
     a civil action by the United States to collect a penalty and 
     assessment imposed under this section.
       ``(g) Whenever the Board's determination to impose a 
     penalty, assessment, or exclusion under this section with 
     respect to a medical provider or physician becomes final, the 
     provisions of section 1128A(h) shall apply.
       ``(h) Whenever the Board has reason to believe that any 
     person has engaged, is engaging, or is about to engage in any 
     activity which makes the person subject to a civil monetary 
     penalty under this section, the Board may bring an action in 
     an appropriate district court of the United States (or, if 
     applicable, a United States court of any territory) to enjoin 
     such activity, or to enjoin the person from concealing, 
     removing, encumbering, or disposing of assets which may be 
     required in order to pay a civil monetary penalty and 
     assessment if any such penalty were to be imposed or to seek 
     other appropriate relief.
       ``(i)(1) The provisions of subsections (d) and (e) of 
     section 205 shall apply with respect to this section to the 
     same extent as they are applicable with respect to title II. 
     The Board may delegate the authority granted by section 
     205(d) (as made applicable to this section) to the Inspector 
     General of the Department of Health and Human Services for 
     purposes of any investigation under this section.
       ``(2) The Board may delegate authority granted under this 
     section to the Inspector General of the Social Security 
     Administration.
       ``(j) For purposes of this section, the term `State agency' 
     shall have the same meaning as in section 1128A(i)(1).
       ``(k) A principal is liable for penalties, assessments, and 
     exclusions under this section for the actions of the 
     principal's agent acting within the scope of the agency.''.
       (2) Conforming amendments.--Section 1128 of such Act (42 
     U.S.C. 1320a-7) is amended--
       (A) in subsection (b)(7), by striking ``or section 1128B'' 
     and inserting ``, section 1128B, or section 1129'';
       (B) in subsection (b)(8)(B)(ii), by inserting ``and section 
     1129'' after ``section 1128A'';
       (C) in subsection (c)(1), by striking ``or under section 
     1128A'' and inserting ``, section 1128A, or section 1129'';
       (D) in subsection (c)(3)(A), by inserting ``or section 
     1129'' after ``section 1128A'';
       (E) in subsection (d)(1), by striking ``and section 1128A'' 
     and inserting ``, section 1128A, and section 1129'';
       (F) in subsection (d)(2)(A), by striking ``or section 
     1128A'' and inserting ``, section 1128A, or section 1129'';
       (G) in subsection (e)(1), by striking ``or section 1128A'' 
     and inserting ``, section 1128A, or section 1129'';
       (H) in subsection (f)(3), by inserting ``, 1129,'' after 
     ``sections 1128A'';
       (I) in subsection (g)(1), by striking ``or section 1128A'' 
     each place such term appears and inserting ``, section 1128A, 
     or section 1129'';
       (J) in subsection (g)(2)(A), by inserting ``and section 
     1129(a)'' after ``section 1128A(a)''; and
       (K) in subsection (h), by striking ``1128A and 1128B'' and 
     inserting ``1128A, 1128B, and 1129''.
       (c) SSI Fraud Considered a Felony.--
       (1) In general.--Section 1632(a) of the Social Security Act 
     (42 U.S.C. 1383a(a)) is amended by striking ``shall'' the 1st 
     place such term appears and all that follows and inserting 
     ``shall be fined under title 18, United States Code, 
     imprisoned not more than 5 years, or both.''.
       (2) Conforming amendment.--Section 1632(b) of such Act (42 
     U.S.C. 1383a(b)) is amended to read as follows:
       ``(b)(1) If a person or entity violates subsection (a) in 
     the person's or entity's role as, or in applying to become, a 
     payee under section 1631(a)(2) on behalf of another 
     individual (other than the person's eligible spouse), and the 
     violation includes a willful misuse of funds by the person or 
     entity, the court may also require that full or partial 
     restitution of funds be made to such other individual.
       ``(2) Any person or entity convicted of a violation of 
     subsection (a) of this section or of section 208 may not be 
     certified as a payee under section 1631(a)(2).''.
       (d) Authority to Redetermine Eligibility in Disability 
     Cases if Fraud is Involved, and to Terminate Benefits if 
     There is Insufficient Reliable Evidence of Disability.--
       (1) In general.--Section 1631(e) of the Social Security Act 
     (42 U.S.C. 1383(e)) is amended by adding at the end the 
     following:
       ``(6)(A) The Board shall immediately redetermine the 
     eligibility of an individual for benefits under this title by 
     reason of disability, disregarding any unreliable evidence of 
     disability, if there is reason to believe that fraud was 
     involved in the application of the individual for such 
     benefits, unless a United States attorney, or equivalent 
     State prosecutor, with jurisdiction over potential or actual 
     related criminal cases, certifies, in writing, that there is 
     a substantial risk that redetermining such eligibility would 
     jeopardize the criminal prosecution of any person who is a 
     subject of the investigation from which the information is 
     derived.
       ``(B) If, after redetermining the eligibility of an 
     individual for benefits under this title by reason of 
     disability, the Board determines that there is insufficient 
     reliable evidence of disability, the Board may terminate such 
     eligibility.''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall take effect on October 1, 1994, and shall apply to 
     eligibility determinations made before, on, or after such 
     date.
       (e) Availability of Recipient Identifying Information From 
     the Inspector General, Social Security Administration.--
       (1) In general.--Section 1631(e) of the Social Security Act 
     (42 U.S.C. 1383(e)), as amended by subsection (d) of this 
     section, is amended by adding at the end the following:
       ``(7) As soon as the Inspector General, Social Security 
     Administration, has reason to believe that fraud was involved 
     in the application of a recipient for benefits under this 
     title, the Inspector General shall make available to the 
     Board information identifying the recipient, unless a United 
     States attorney, or equivalent State prosecutor, with 
     jurisdiction over potential or actual related criminal cases, 
     certifies, in writing, that there is a substantial risk that 
     making the information so available or redetermining the 
     eligibility of the recipient for such benefits would 
     jeopardize the criminal prosecution of any person who is a 
     subject of the investigation from which the information is 
     derived.''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall take effect on October 1, 1994.
       (f) Authority to Use Available Preadmission Immigrant and 
     Refugee Medical Information.--
       (1) In general.--Section 1631(e) of the Social Security Act 
     (42 U.S.C. 1383(e)), as amended by the preceding provisions 
     of this Act, is amended by adding at the end the following:
       ``(8) The Board shall request the Immigration and 
     Naturalization Service and the Centers for Disease Control to 
     provide the Board with whatever medical information either 
     such entity has with respect to any alien who has applied for 
     benefits under this title to the extent that the information 
     is relevant to any determination relating to such 
     eligibility.''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall take effect on October 1, 1994.
       (g) Annual Reports on Reviews of SSI Cases.--The Board 
     shall annually submit to the Committee on Ways and Means of 
     the House of Representatives and the Committee on Finance of 
     the Senate a report on the exent to which the Board has 
     exercised its authority to review supplemental security 
     income cases under title XVI of the Social Security Act, and 
     the extent to which the cases reviewed were those that 
     involved a high likelihood or probability of fraud.

     SEC. 232. DISABILITY REVIEW REQUIRED FOR SSI RECIPIENTS WHO 
                   ARE 18 YEARS OF AGE.

       (a) In General.--Section 1614(a)(3)(G) of the Social 
     Security Act (42 U.S.C. 1382c(a)(3)(G)) is amended--
       (1) by inserting ``(i)'' after ``(G)''; and
       (2) by adding after and below the end the following:
       ``(ii)(I) During the 1-year period that begins on the date 
     a recipient of benefits under this title by reason of 
     disability attains 18 years of age, the applicable State 
     agency or the Board (as may be appropriate) shall redetermine 
     the eligibility of the recipient for such benefits by reason 
     of disability, by applying the criteria used in determining 
     eligibility for such benefits of applicants who have attained 
     18 years of age.
       ``(II) A review under subclause (I) of this clause shall be 
     considered a substitute for a review required under clause 
     (i).''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to individuals who attain 18 years of age in or 
     after the 9th month after the month in which this Act is 
     enacted.

     SEC. 233. CONTINUING DISABILITY REVIEWS.

       (a) In General.--Section 1614(a)(3)(G) of such Act (42 
     U.S.C. 1382c(a)(3)(G)) is amended by inserting ``221(i),'' 
     after ``221(h),''.
       (b) Effective Date.--The amendment made by subsection (A) 
     shall take effect on October 1, 1995.

     SEC. 234. TECHNICAL AND CLERICAL AMENDMENTS.

       (a) Amendments to Title II of the Social Security Act.--
       (1) Section 201(a) of the Social Security Act (42 U.S.C. 
     401(a)) is amended, in the matter following clause (4), by 
     striking ``and and'' and inserting ``and''.
       (2) Section 202(d)(8)(D)(ii) of such Act (42 U.S.C. 
     402(d)(8)(D)(ii)) is amended by adding a period at the end 
     and by adjusting the left hand margination thereof so as to 
     align with section 202(d)(8)(D)(i) of such Act.
       (3) Section 202(q)(1)(A) of such Act (42 U.S.C. 
     402(q)(1)(A)) is amended by striking the dash at the end.
       (4) Section 202(q)(9) of such Act (42 U.S.C. 402(q)(9)) is 
     amended, in the matter preceding subparagraph (A), by 
     striking ``parargaph'' and inserting ``paragraph''.
       (5) Section 202(t)(4)(D) of such Act (42 U.S.C. 
     402(t)(4)(D)) is amended by inserting ``if the'' before 
     ``Secretary'' the second and third places it appears.
       (6) Clauses (i) and (ii) of section 203(f)(5)(C) of such 
     Act (42 U.S.C. 403(f)(5)(C)) are amended by adjusting the 
     left-hand margination thereof so as to align with clauses (i) 
     and (ii) of section 203(f)(5)(B) of such Act.
       (7) Paragraph (3)(A) and paragraph (3)(B) of section 205(b) 
     of such Act (42 U.S.C. 405(b)) are amended by adjusting the 
     left-hand margination thereof so as to align with the matter 
     following section 205(b)(2)(C) of such Act.
       (8) Section 205(c)(2)(B)(iii) of such Act (42 U.S.C. 
     405(c)(2)(B)(iii)) is amended by striking ``non-public'' and 
     inserting ``nonpublic''.
       (9) Section 205(c)(2)(C) of such Act (42 U.S.C. 
     405(c)(2)(C)) is amended--
       (A) by striking the clause (vii) added by section 2201(c) 
     of Public Law 101-624;
       (B) by redesignating the clause (iii) added by section 
     2201(b)(3) of Public Law 101-624, clause (iv), clause (v), 
     clause (vi), and the clause (vii) added by section 1735(b) of 
     Public Law 101-624 as clause (iv), clause (v), clause (vi), 
     clause (vii), and clause (viii), respectively;
       (C) in clause (v) (as redesignated), by striking 
     ``subclause (I) of'', and by striking ``subclause (II) of 
     clause (i)'' and inserting ``clause (ii)''; and
       (D) in clause (viii)(IV) (as redesignated), by inserting 
     ``a social security account number or'' before ``a request 
     for''.
       (10) The heading for section 205(j) of such Act (42 U.S.C. 
     405(j)) is amended to read as follows:

                       ``Representative Payees''.

       (11) The heading for section 205(s) of such Act (42 U.S.C. 
     405(s)) is amended to read as follows:

                        ``Notice Requirements''.

       (12) Section 208(c) of such Act (42 U.S.C. 408(c)) is 
     amended by striking ``subsection (g)'' and inserting 
     ``subsection (a)(7)''.
       (13) Section 210(a)(5)(B)(i)(V) of such Act (42 U.S.C. 
     410(a)(5)(B)(i)(V)) is amended by striking ``section 
     105(e)(2)'' and inserting ``section 104(e)(2)''.
       (14) Section 211(a) of such Act (42 U.S.C. 411(a)) is 
     amended--
       (A) in paragraph (13), by striking ``and'' at the end; and
       (B) in paragraph (14), by striking the period and inserting 
     ``; and''.
       (15) Section 213(c) of such Act (42 U.S.C. 413(c)) is 
     amended by striking ``section'' the first place it appears 
     and inserting ``sections''.
       (16) Section 215(a)(5)(B)(i) of such Act (42 U.S.C. 
     415(a)(5)(B)(i)) is amended by striking ``subsection'' the 
     second place it appears and inserting ``subsections''.
       (17) Section 215(f)(7) of such Act (42 U.S.C. 415(f)(7)) is 
     amended by inserting a period after ``1990''.
       (18) Subparagraph (F) of section 218(c)(6) of such Act (42 
     U.S.C. 418(c)(6)) is amended by adjusting the left-hand 
     margination thereof so as to align with section 218(c)(6)(E) 
     of such Act.
       (19) Section 223(i) of such Act (42 U.S.C. 423(i)) is 
     amended by adding at the beginning the following heading:

                ``Limitation on Payments to Prisoners''.

       (b) Related Amendments.--
       (1) Section 603(b)(5)(A) of Public Law 101-649 (amending 
     section 202(n)(1) of the Social Security Act) (104 Stat. 
     5085) is amended by inserting ``under'' before ``paragraph 
     (1),'' and by striking ``(17), or (18)'' and inserting 
     ``(17), (18), or (19)'', effective as if this paragraph were 
     included in such section 603(b)(5)(A).
       (2) Section 10208(b)(1) of Public Law 101-239 (amending 
     section 230(b)(2)(A) of the Social Security Act) (103 Stat. 
     2477) is amended by striking ``230(b)(2)(A)'' and 
     ``430(b)(2)(A)'' and inserting ``230(b)(2)'' and 
     ``430(b)(2)'', respectively, effective as if this paragraph 
     were included in such section 10208(b)(1).
       (c) Conforming, Clerical Amendments Updating, Without 
     Substantive Change, References in Title II of the Social 
     Security Act to the Internal Revenue Code.--
       (1)(A)(i) Section 201(g)(1) of such Act (42 U.S.C. 
     401(g)(1)) is amended--
       (I) in subparagraph (A)(i), by striking ``and subchapter 
     E'' and all that follows through ``1954'' and inserting ``and 
     chapters 2 and 21 of the Internal Revenue Code of 1986'';
       (II) in subparagraph (A)(ii), by striking ``1954'' and 
     inserting ``1986'';
       (III) in the matter in subparagraph (A) following clause 
     (ii), by striking ``subchapter E'' and all that follows 
     through ``1954.'' and inserting ``chapters 2 and 21 of the 
     Internal Revenue Code of 1986.'', and by striking ``1954 
     other'' and inserting ``1986 other''; and
       (IV) in subparagraph (B), by striking ``1954'' each place 
     it appears and inserting ``1986''.
       (ii) The amendments made by clause (i) shall apply only 
     with respect to periods beginning on or after the date of the 
     enactment of this Act.
       (B)(i) Section 201(g)(2) of such Act (42 U.S.C. 401(g)(2)) 
     is amended by striking ``section 3101(a)'' and all that 
     follows through ``1950.'' and inserting ``section 3101(a) of 
     the Internal Revenue Code of 1986 which are subject to refund 
     under section 6413(c) of such Code with respect to wages (as 
     defined in section 3121 of such Code).'', and by striking 
     ``wages reported'' and all that follows through ``1954,'' and 
     inserting ``wages reported to the Secretary of the Treasury 
     or his delegate pursuant to subtitle F of such Code,''.
       (ii) The amendments made by clause (i) shall apply only 
     with respect to wages paid on or after January 1, 1995.
       (C) Section 201(g)(4) of such Act (42 U.S.C. 401(g)(4)) is 
     amended--
       (i) by striking ``The Board of Trustees shall prescribe 
     before January 1, 1981, the method'' and inserting ``If at 
     any time or times the Boards of Trustees of such Trust Funds 
     deem such action advisable, they may modify the method 
     prescribed by such Boards'';
       (ii) by striking ``1954'' and inserting ``1986''; and
       (iii) by striking the last sentence.
       (2) Section 202(v) of such Act (42 U.S.C. 402(v)) is 
     amended--
       (A) in paragraph (1), by striking ``1954'' and inserting 
     ``1986''; and
       (B) in paragraph (3)(A), by inserting ``of the Internal 
     Revenue Code of 1986'' after ``3127''.
       (3) Section 205(c)(5)(F)(i) of such Act (42 U.S.C. 
     405(c)(5)(F)(i)) is amended by inserting ``or the Internal 
     Revenue Code of 1986'' after ``1954''.
       (4)(A) Section 209(a)(4)(A) of such Act (42 U.S.C. 
     409(a)(4)(A)) is amended by inserting ``or the Internal 
     Revenue Code of 1986'' after ``Internal Revenue Code of 
     1954''.
       (B) Section 209(a) of such Act (42 U.S.C. 409(a)) is 
     amended--
       (i) in subparagraphs (C) and (E) of paragraph (4),
       (ii) in paragraph (5)(A),
       (iii) in subparagraphs (A) and (B) of paragraph (14),
       (iv) in paragraph (15),
       (v) in paragraph (16), and
       (vi) in paragraph (17),

     by striking ``1954'' each place it appears and inserting 
     ``1986''.
       (C) Subsections (b), (f), (g), (i)(1), and (j) of section 
     209 of such Act (42 U.S.C. 409) are amended by striking 
     ``1954'' each place it appears and inserting ``1986''.
       (5) Section 211(a)(15) of such Act (42 U.S.C. 411(a)(15)) 
     is amended by inserting ``of the Internal Revenue Code of 
     1986'' after ``section 162(m)''.
       (6) Title II of such Act is further amended--
       (A) in subsections (f)(5)(B)(ii) and (k) of section 203 (42 
     U.S.C. 403),
       (B) in section 205(c)(1)(D)(i) (42 U.S.C. 405(c)(1)(D)(i)),
       (C) in the matter in section 210(a) (42 U.S.C. 410(a)) 
     preceding paragraph (1) and in paragraphs (8), (9), and (10) 
     of section 210(a),
       (D) in subsections (p)(4) and (q) of section 210 (42 U.S.C. 
     410),
       (E) in the matter in section 211(a) (42 U.S.C. 411(a)) 
     preceding paragraph (1) and in paragraphs (3), (4), (6), 
     (10), (11), and (12) and clauses (iii) and (iv) of section 
     211(a),
       (F) in the matter in section 211(c) (42 U.S.C. 411(c)) 
     preceding paragraph (1), in paragraphs (3) and (6) of section 
     211(c), and in the matter following paragraph (6) of section 
     211(c),
       (G) in subsections (d), (e), and (h)(1)(B) of section 211 
     (42 U.S.C. 411),
       (H) in section 216(j) (42 U.S.C. 416(j)),
       (I) in section 218(e)(3) (42 U.S.C. 418(e)(3)),
       (J) in section 229(b) (42 U.S.C. 429(b)),
       (K) in section 230(c) (42 U.S.C. 430(c)), and
       (L) in section 232 (42 U.S.C. 432),

     by striking ``1954'' each place it appears and inserting 
     ``1986''.
       (d) Rules of Construction.--
       (1) The preceding provisions of this section shall be 
     construed only as technical and clerical corrections and as 
     reflecting the original intent of the provisions amended 
     thereby.
       (2) Any reference in title II of the Social Security Act to 
     the Internal Revenue Code of 1986 shall be construed to 
     include a reference to the Internal Revenue Code of 1954 to 
     the extent necessary to carry out the provisions of paragraph 
     (1).
       (e) Utilization of National Average Wage Index for Wage-
     Based Adjustments.--
       (1) Definition of national average wage index.--Section 
     209(k) of the Social Security Act (42 U.S.C. 409(k)) is 
     amended--
       (A) by redesignating paragraph (2) as paragraph (3);
       (B) in paragraph (3) (as redesignated), by striking 
     ``paragraph (1)'' and inserting ``this subsection''; and
       (C) by striking paragraph (1) and inserting the following 
     new paragraphs:
       ``(k)(1) For purposes of sections 203(f)(8)(B)(ii), 
     213(d)(2)(B), 215(a)(1)(B)(ii), 215(a)(1)(C)(ii), 
     215(a)(1)(D), 215(b)(3)(A)(ii), 215(i)(1)(E), 
     215(i)(2)(C)(ii), 224(f)(2)(B), and 230(b)(2) (and 230(b)(2) 
     as in effect immediately prior to the enactment of the Social 
     Security Amendments of 1977), the term `national average wage 
     index' for any particular calendar year means, subject to 
     regulations of the Secretary under paragraph (2), the average 
     of the total wages for such particular calendar year.
       ``(2) The Secretary shall prescribe regulations under which 
     the national average wage index for any calendar year shall 
     be computed--
       ``(A) on the basis of amounts reported to the Secretary of 
     the Treasury or his delegate for such year,
       ``(B) by disregarding the limitation on wages specified in 
     subsection (a)(1),
       ``(C) with respect to calendar years after 1990, by 
     incorporating deferred compensation amounts and factoring in 
     for such years the rate of change from year to year in such 
     amounts, in a manner consistent with the requirements of 
     section 10208 of the Omnibus Budget Reconciliation Act of 
     1989, and
       ``(D) with respect to calendar years before 1978, in a 
     manner consistent with the manner in which the average of the 
     total wages for each of such calendar years was determined as 
     provided by applicable law as in effect for such years.''.
       (2) Conforming amendments.--
       (A) Section 213(d)(2)(B) of such Act (42 U.S.C. 
     413(d)(2)(B)) is amended by striking ``deemed average total 
     wages'' and inserting ``national average wage index'', and by 
     striking ``the average of the total wages'' and all that 
     follows and inserting ``the national average wage index (as 
     so defined) for 1976,''.
       (B) Section 215(a)(1)(B)(ii) of such Act (42 U.S.C. 
     415(a)(1)(B)(ii)) is amended--
       (i) in subclause (I), by striking ``deemed average total 
     wages'' and inserting ``national average wage index''; and
       (ii) in subclause (II), by striking ``the average of the 
     total wages'' and all that follows and inserting ``the 
     national average wage index (as so defined) for 1977.''.
       (C) Section 215(a)(1)(C)(ii) of such Act (42 U.S.C. 
     415(a)(1)(C)(ii)) is amended by striking ``deemed average 
     total wages'' and inserting ``national average wage index''.
       (D) Section 215(a)(1)(D) of such Act (42 U.S.C. 
     415(a)(1)(D)) is amended--
       (i) by striking ``after 1978'';
       (ii) by striking ``and the average of the total wages (as 
     described in subparagraph (B)(ii)(I))'' and inserting ``and 
     the national average wage index (as defined in section 
     209(k)(1))''; and
       (iii) by striking the last sentence.
       (E) Section 215(b)(3)(A)(ii) of such Act (42 U.S.C. 
     415(b)(3)(A)(ii)) is amended by striking ``deemed average 
     total wages'' each place it appears and inserting ``national 
     average wage index''.
       (F) Section 215(i)(1) of such Act (42 U.S.C. 415(i)(1)) is 
     amended--
       (i) in subparagraph (E), by striking ``SSA average wage 
     index'' and inserting ``national average wage index (as 
     defined in section 209(k)(1))''; and
       (ii) by striking subparagraph (G) and redesignating 
     subparagraph (H) as subparagraph (G).
       (G) Section 215(i)(2)(C)(ii) of such Act (42 U.S.C. 
     415(i)(1)(C)(ii)) is amended to read as follows:
       ``(ii) The Secretary shall determine and promulgate the 
     OASDI fund ratio for the current calendar year on or before 
     November 1 of the current calendar year, based upon the most 
     recent data then available. The Secretary shall include a 
     statement of the fund ratio and the national average wage 
     index (as defined in section 209(k)(1)) and a statement of 
     the effect such ratio and the level of such index may have 
     upon benefit increases under this subsection in any 
     notification made under clause (i) and any determination 
     published under subparagraph (D).''.
       (H) Section 224(f)(2) of such Act (42 U.S.C. 424a(f)(2)) is 
     amended--
       (i) in subparagraph (A), by adding ``and'' at the end;
       (ii) by striking subparagraph (C); and
       (iii) by striking subparagraph (B) and inserting the 
     following:
       ``(B) the ratio of (i) the national average wage index (as 
     defined in section 209(k)(1)) for the calendar year before 
     the year in which such redetermination is made to (ii) the 
     national average wage index (as so defined) for the calendar 
     year before the year in which the reduction was first 
     computed (but not counting any reduction made in benefits for 
     a previous period of disability).''.
       (f) Technical Corrections Related to OASDI in the Omnibus 
     Budget Reconciliation Act of 1990.--
       (1) Amendments related to provisions in section 5103(b) 
     relating to disabled widows.--Section 223(f)(2) of the Social 
     Security Act (42 U.S.C. 423(f)(2)) is amended--
       (A) in subparagraph (A), by striking ``(in a case to which 
     clause (ii)(II) does not apply)''; and
       (B) by striking subparagraph (B)(ii) and inserting the 
     following:
       ``(ii) the individual is now able to engage in substantial 
     gainful activity; or''.
       (2) Amendments related to provisions in section 5105(d) 
     relating to representative payees.--
       (A) Title ii amendments.--Section 5105(d)(1)(A) of the 
     Omnibus Budget Reconciliation Act of 1990 (Public Law 101-
     508) is amended--
       (i) by striking ``Section 205(j)(5)'' and inserting 
     ``Section 205(j)(6)''; and
       (ii) by redesignating the paragraph (5) as amended thereby 
     as paragraph (6).
       (B) Title xvi amendments.--Section 1631(a)(2) of the Social 
     Security Act (42 U.S.C. 1383(a)(2)) is amended--
       (i) by redesignating subparagraphs (E) and (F) as 
     subparagraphs (F) and (G), respectively; and
       (ii) by inserting after subparagraph (D) the following:
       ``(E) Restitution.--In cases where the negligent failure of 
     the Secretary to investigate or monitor a representative 
     payee results in misuse of benefits by the representative 
     payee, the Secretary shall make payment to the beneficiary or 
     the beneficiary's representative payee of an amount equal to 
     such misused benefits. The Secretary shall make a good faith 
     effort to obtain restitution from the terminated 
     representative payee.''.
       (3) Amendments related to provisions in section 5106 
     relating to coordination of rules under titles ii and xvi 
     governing fees for representatives of claimants with 
     entitlements under both titles.--
       (A) Calculation of fee of claimant's representative based 
     on amount of past-due supplemental security income benefits 
     after application of windfall offset provision.--Section 
     1631(d)(2)(A)(i) of the Social Security Act (as amended by 
     section 5106(a)(2) of the Omnibus Budget Reconciliation Act 
     of 1990) (42 U.S.C. 1383(d)(2)(A)(i)) is amended to read as 
     follows:
       ``(i) by substituting, in subparagraphs (A)(ii)(I) and 
     (C)(i), the phrase `(as determined before any applicable 
     reduction under section 1631(g), and reduced by the amount of 
     any reduction in benefits under this title or title II made 
     pursuant to section 1127(a))' for the parenthetical phrase 
     contained therein; and''.
       (B) Calculation of past-due benefits for purposes of 
     determining attorney fees in judicial proceedings.--
       (i) In general.--Section 206(b)(1) of such Act (42 U.S.C. 
     406(b)(1)) is amended--

       (I) by inserting ``(A)'' after ``(b)(1)''; and
       (II) by adding at the end the following new subparagraph:

       ``(B) For purposes of this paragraph--
       ``(i) the term `past-due benefits' excludes any benefits 
     with respect to which payment has been continued pursuant to 
     subsection (g) or (h) of section 223, and
       ``(ii) amounts of past-due benefits shall be taken into 
     account to the extent provided under the rules applicable in 
     cases before the Secretary.''.
       (ii) Protection from offsetting ssi benefits.--The last 
     sentence of section 1127(a) of such Act (as added by section 
     5106(b) of the Omnibus Budget Reconciliation Act of 1990) (42 
     U.S.C. 1320a-6(a)) is amended by striking ``section 
     206(a)(4)'' and inserting ``subsection (a)(4) or (b) of 
     section 206''.
       (4) Application of single dollar amount ceiling to 
     concurrent claims under titles ii and xvi.--
       (A) In general.--Section 206(a)(2) of such Act (as amended 
     by section 5106(a)(1) of the Omnibus Budget Reconciliation 
     Act of 1990) (42 U.S.C. 406(a)(2)) is amended--
       (i) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (ii) by inserting after subparagraph (B) the following new 
     subparagraph:
       ``(C) In any case involving--
       ``(i) an agreement described in subparagraph (A) with any 
     person relating to both a claim of entitlement to past-due 
     benefits under this title and a claim of entitlement to past-
     due benefits under title XVI, and
       ``(ii) a favorable determination made by the Secretary with 
     respect to both such claims,

     the Secretary may approve such agreement only if the total 
     fee or fees specified in such agreement does not exceed, in 
     the aggregate, the dollar amount in effect under subparagraph 
     (A)(ii)(II).''.
       (B) Conforming amendment.--Section 206(a)(3)(A) of such Act 
     (as amended by section 5106(a)(1) of the Omnibus Budget 
     Reconciliation Act of 1990) (42 U.S.C. 406(a)(3)(A)) is 
     amended by striking ``paragraph (2)(C)'' and inserting 
     ``paragraph (2)(D)''.
       (5) Effective date.--Each amendment made by this section 
     shall take effect as if included in the provisions of the 
     Omnibus Budget Reconciliation Act of 1990 to which such 
     amendment relates.
       (g) Elimination of Rounding Distortion in the Calculation 
     of the Old-Age, Survivors, and Disability Insurance 
     Contribution and Benefit Base and the Earnings Test Exempt 
     Amounts.--
       (1) Adjustment of oasdi contribution and benefit base.--
       (A) In general.--Section 230(b) of the Social Security Act 
     (42 U.S.C. 430(b)) is amended by striking paragraphs (1) and 
     (2) and inserting the following:
       ``(1) $60,600, and
       ``(2) the ratio of (A) the national average wage index (as 
     defined in section 209(k)(1)) for the calendar year before 
     the calendar year in which the determination under subsection 
     (a) is made to (B) the national average wage index (as so 
     defined) for 1992,''.
       (B) Conforming amendment relating to applicable prior 
     law.--Section 230(d) of such Act (42 U.S.C. 430(d)) is 
     amended by striking ``(except that'' and all that follows 
     through the end and inserting ``(except that, for purposes of 
     subsection (b) of such section 230 as so in effect, the 
     reference to the contribution and benefit base in paragraph 
     (1) of such subsection (b) shall be deemed a reference to an 
     amount equal to $45,000, each reference in paragraph (2) of 
     such subsection (b) to the average of the wages of all 
     employees as reported to the Secretary of the Treasury shall 
     be deemed a reference to the national average wage index (as 
     defined in section 209(k)(1)), the reference to a preceding 
     calendar year in paragraph (2)(A) of such subsection (b) 
     shall be deemed a reference to the calendar year before the 
     calendar year in which the determination under subsection (a) 
     of such section 230 is made, and the reference to a calendar 
     year in paragraph (2)(B) of such subsection (b) shall be 
     deemed a reference to 1992).''.
       (C) Adjustment of contribution and benefit base applicable 
     in determining years of coverage for purposes of special 
     minimum primary insurance amount.--Section 215(a)(1)(C)(ii) 
     of such Act is amended by striking ``(except that'' and all 
     that follows through the end and inserting ``(except that, 
     for purposes of subsection (b) of such section 230 as so in 
     effect, the reference to the contribution and benefit base in 
     paragraph (1) of such subsection (b) shall be deemed a 
     reference to an amount equal to $45,000, each reference in 
     paragraph (2) of such subsection (b) to the average of the 
     wages of all employees as reported to the Secretary of the 
     Treasury shall be deemed a reference to the national average 
     wage index (as defined in section 209(k)(1)), the reference 
     to a preceding calendar year in paragraph (2)(A) of such 
     subsection (b) shall be deemed a reference to the calendar 
     year before the calendar year in which the determination 
     under subsection (a) of such section 230 is made, and the 
     reference to a calendar year in paragraph (2)(B) of such 
     subsection (b) shall be deemed a reference to 1992).''.
       (2) Adjustment of earnings test exempt amount.--Section 
     203(f)(8)(B)(ii) of the Social Security Act (42 U.S.C. 
     403(f)(8)(B)(ii)) is amended to read as follows:
       ``(ii) the product of the corresponding exempt amount which 
     is in effect with respect to months in the taxable year 
     ending after 1993 and before 1995, and the ratio of--
       ``(I) the national average wage index (as defined in 
     section 209(k)(1)) for the calendar year before the calendar 
     year in which the determination under subparagraph (A) is 
     made, to
       ``(II) the national average wage index (as so defined) for 
     1992,

     with such product, if not a multiple of $10, being rounded to 
     the next higher multiple of $10 where such product is a 
     multiple of $5 but not of $10 and to the nearest multiple of 
     $10 in any other case.''.
       (3) Effective dates.--
       (A) The amendments made by subsection (a) shall be 
     effective with respect to the determination of the 
     contribution and benefit base for years after 1994.
       (B) The amendment made by subsection (b) shall be effective 
     with respect to the determination of the exempt amounts 
     applicable to any taxable year ending after 1994.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Illinois [Mr. Rostenkowski] will be recognized for 20 minutes, and the 
gentleman from Texas [Mr. Archer] will be recognized for 20 minutes.
  The Chair recognizes the gentleman from Illinois [Mr. Rostenkowski].
  Mr. ROSTENKOWSKI. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, the Committee on Ways and Means brings before the House 
today H.R. 4277, a bill making the Social Security Administration an 
independent agency and making other needed improvements in the Social 
Security and SSI programs.
  First, the bill creates an independent Social Security 
Administration. This legislation has been a long time in coming. In the 
House, we have acted on this measure three times in the past. Recently, 
the Senate has also acted, approving an independent agency bill just 2 
months ago.
  This bill takes an important step toward restoring confidence in an 
agency which was decimated during the late 1980's. During the two 
previous administrations, the agency was starved of resources, and its 
staff was cut by over 20 percent. As a result of these actions, 
disability applications piled up and the quality of service to the 
public declined.
  The Clinton administration has done an excellent job working to 
return the agency to world class service--but it has been an uphill 
battle. More remains to be done.
  As an independent agency, SSA can focus on the goal of improving 
service; insulate itself from the political pressures under which it 
operated in the 1980's; and return to the stature it enjoyed in the 
past.
  H.R. 4277 also reforms the payments of both Social Security and SSI 
disability benefits to drug addicts and alcoholics. The bill would 
place strict limitations on benefits to such individuals and would 
establish safeguards to ensure that benefits, when paid, are not used 
to support an addiction.
  The legislation also would require that individuals participate in a 
drug treatment program as a condition of receiving benefits. 
Progressive sanctions--in the form of lost benefits--would be applied 
to those who do not comply. Moreover, a total 3-year limit would be 
placed on benefits to drug addicts and alcoholics.
  The bill also addresses fraud and abuse issues in the SSI program by 
expanding the authority of SSA to prevent, detect, and terminate 
fraudulent claims for SSI benefits. As a method of prevention, SSA 
would be required to certify individuals who serve as third-party 
translators.
  In addition, persons found guilty of committing fraud would be 
subject to to civil money penalties and criminal felony sanctions. The 
legislation would also SSA to review all disability cases involving 
fraud, using identification information from the inspector general and 
immigrant medical information from the immigration and Naturalization 
Service.
  Finally, the legislation includes a number of other improvements in 
the Social Security program: it increases the FICA exemption for 
election workers and makes permanent the transfer of certain revenues 
to the railroad retirement account.
  Mr. Speaker, this legislation includes important changes which will 
increase public confidence in the Social Security and SSI programs. 
Moreover, it will reduce the unified deficit by $2.3 billion over the 
next 5 years. I urge my colleagues to give it their support.

                              {time}  1330

  Mr. Speaker, I reserve the balance of my time.
  Mr. ARCHER. Mr. Speaker, I yield myself such time as I may consume.
  (Mr. ARCHER asked and was given permission to revise and extend his 
remarks.)
  Mr. ARCHER. Mr. Speaker, I sincerely hope that the action we are 
about to set into motion on this bill at long last results in final 
passage of legislation to make Social Security an independent agency. 
In my view, this legislation is long, long overdue.
  Mr. Speaker, shoring up the Social Security System, has been one of 
my chief legislative priorities since I was elected to Congress. That 
is the reason I chose to become the ranking Republican on the Social 
Security Subcommittee when it was first created.
  It is also the reason why I sponsored one of the first House bills 
creating an independent Social Security agency with my colleague from 
Austin, Mr. Pickle, who served as the subcommittee's first chairman.
  That bill was one of the three to have overwhelmingly been passed in 
the House over the last decade. As sometimes happens around here, 
however, the House and Senate were unable to get together on a final 
product.
  This time, I strongly hope we in fact see the issue finally resolved. 
First, because freeing Social Security from the HHS bureaucracy is 
critical to its survival as a vital public service agency.
  Making Social Security independent is not a panacea, but I believe 
that freeing Social Security from the layers of bureaucracy imposed 
upon it by its current structure within HHS will go a long way in 
making it less political and both more responsive and more accountable.
  I believe that independence from HHS simply will allow Social 
Security to manage more of its own resources, and with better results.
  Mr. Speaker, the 1983 Social Security Commission, on which I served, 
recommended a study to make Social Security an independent agency. That 
recommendation was included in the 1983 Social Security Amendments.
  The study itself, which was headed up by former General Accounting 
Office Comptroller General Elmer Staats, recommended that an 
independent Social Security Administration be run by a single 
administrator, backed by an advisory board.
  While I strongly support this bill, I would like to note that I would 
prefer the form of administrative leadership specified in the bill of 
the gentleman from Kentucky [Mr. Bunning], the ranking Republican on 
the Social Security Subcommittee, whose efforts on this issue I 
commend. His bill would establish the same form of leadership as was 
endorsed by the experts on the Staats panel.
  Mr. Speaker, the bill contains other provisions that are important to 
average Americans and that are also long overdue. Although I would have 
liked stronger provisions dealing with payments to drug addicts and 
alcoholics, I am confident that this is just the beginning, and I look 
forward to working with the leadership of the subcommittees and 
committee to take further action.
  The laxness of the current program is an affront to hard-working 
American taxpayers and must be corrected.
  Mr. Speaker, I join Chairman Rostenkowski, Subcommittee Chairman 
Jacobs and our Republican leader on Social Security, the gentleman from 
Kentucky, Mr. Bunning, in strongly supporting this bill.
  Mr. Speaker, I yield the balance of my time to the gentleman from 
Kentucky [Mr. Bunning], and I ask unanimous consent that he be 
permitted to yield time to other Members.
  The SPEAKER pro tempore (Mr. Mazzoli). Is there objection to the 
request of the gentleman from Texas?
  There was no objection.
  The SPEAKER pro tempore. The gentleman from Kentucky [Mr. Bunning] 
will control the remainder of the time for the minority.
  Mr. ROSTENKOWSKI. Mr. Speaker, I make the same unanimous-consent 
request that the gentleman from Texas [Mr. Archer] made on behalf of 
the gentleman from Indiana [Mr. Jacobs] the chairman of the 
Subcommittee on Social Security.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Illinois?
  There was no objection.
  The SPEAKER pro tempore. The gentleman from Indiana [Mr. Jacobs] will 
control the balance of the time on behalf of the majority.
  Mr. JACOBS. Mr. Speaker, I thank the chairman of the Committee on 
Ways and Means, and I yield myself such time as I may consume.
  Naming Members of Congress as receiving credit on legislation gets 
run into the ground, but I am going to do it now. This is the first 
time I have ever done it, but this is a special occasion.
  This proposal has been before the Congress for more than a decade. It 
makes all the sense in the world. In essence, to put it in plain 
English, it allows the Social security system to mind its own business 
without meddling for any reason, other than to perform its mission, 
into the affairs of anybody else.
  The gentleman from Texas [Mr. Pickle] and the gentleman from Texas 
[Mr. Archer] deserve credit. As a Hoosier, I hate to concentrate all 
the praise in that direction, but that is the way it came out. Both Mr. 
Pickle and Mr. Archer have labored long and hard in this vineyard. 
Chairman Rostenkowski has been supportive at every turn in the past.
  The gentleman from Kentucky [Mr. Bunning] and the gentleman from New 
York [Mr. Moynihan], chairman of the Senate Finance Committee, have 
worked unstintingly toward this end. And I might take this occasion--in 
fact, I think I will--to say that working with the gentleman from 
Kentucky [Mr. Bunning] has been a real joy, particularly since we have 
managed to have the honor really of steering it into its final harbor.
  I would have to say that in terms of the Record and for the sake of 
history we have had a series of Presidents who did not like this idea, 
and now we have a President who has endorsed the idea. So on behalf of 
everybody who believes it makes common sense, I express my gratitude to 
the President as well.
  Mr. Speaker, I reserve the balance of my time.
  Mr. BUNNING. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, the bill we are considering right now, H.R. 4277, is, 
without any question, the most substantial piece of Social Security 
legislation I have worked on since I became ranking Republican member 
of the Social Security Subcommittee in 1990.
  This bill does quite a few things, but the heart and soul of this 
bill is independent agency status for the Social Security 
Administration. It is long overdue.
  As my colleagues know, this body has approved independent agency 
legislation three times in the past. But this time is different because 
the Senate has approved similar legislation this year. And we are 
finally going to make independent agency status for the Social Security 
Administration a reality.
  Before I comment further on the merits of the bill before us, I would 
also like to acknowledge the efforts of several of my colleagues, whose 
persistence and hard work on this issue are finally paying off.
  First, the ranking Republican on the Ways and Means Committee, the 
gentleman from Texas [Mr. Archer], who served as the first ranking 
Republican on the Social Security Subcommittee, has been an unflagging 
supporter of making Social Security independent for over a decade.
  The chairman of the Ways and Means Committee, Mr. Rostenkowski, is to 
be commended for his leadership in bringing this legislation to the 
floor.
  The gentleman from Texas [Mr. Pickle] deserves a great deal of credit 
for his early efforts to bring this important change about as the first 
chairman of the Social Security Subcommittee.
  And finally, Mr. Jacobs of Indiana, the chairman of the Social 
Security Subcommittee with whom it has been my distinct pleasure to 
work closely since 1990, has done an outstanding job bringing this bill 
together.
  I appreciate their leadership and wok on this issue.
  Mr. Speaker, I have been convinced for some time that if Social 
Security is ever to operate efficiently, and give taxpaying Americans 
the service they deserve, it must be made independent of the Department 
of Health and Human Services.
  Social Security touches the life of virtually every American citizen. 
It deserves more than being a sideshow in the basement of a huge 
bureaucracy like the Department of Health and Human Services.
  In my opinion, making Social Security an independent agency would do 
more than anything else we could do to make Social Security more 
responsive and more efficient. Independence will also do a great deal 
to insulate the Social Security Program from political pressures and 
budgetary games.
  If there were ever a question in my mind about the need for an 
independent agency, it would have been answered very forcefully by the 
recent developments regarding the decision of HHS appointees to use 
Social Security trust funds to pay employee bonuses instead of to 
process backlogged disability claims.
  That outrageous incident when one high-level official received a 
$9,200 bonus after being with the agency less than 3 months, is proof 
enough for me that the folks who run Health and Human Services are not 
sufficiently sensitive to the special, near-sacred status of the Social 
Security trust funds.
  Independent status will give us a chance to improve oversight and it 
will clarify and strengthen the lines of responsibility within the 
agency so that outrages like these will not be repeated.
  While I strongly support making social Security independent of the 
Department of Health and Human Services, I would have preferred the 
form of administrative leadership structure specified in the bill I 
introduced in April of last year--a single Administrator supported by a 
seven-member part-time board instead of a three-member board as 
outlined in this bill.
  However, I am confident that this matter of organizational structure 
will be thoroughly reviewed and reconsidered in conference and that a 
workable solution will emerge.
  In any event, independent agency status for the Social Security 
Administration will do more to strengthen and protect the Social 
Security Program than anything else we could possibly do.
  As I mentioned earlier, this bill contains quite a few other 
provisions. I will not mention them all. But I would like to comment on 
one other significant portion of the bill, the provisions which tighten 
up payment of benefits to drug addicts and alcoholics.
  As it stands, many recipients of Social Security disability benefits 
are using their benefits to finance ongoing addictions. This is 
intolerable.
  The purpose of Social Security disability is to provide financial 
assistance to the disabled until they can recover from that disability 
and return to productive lives. It is very difficult for anyone to 
recover from anything, if they carry the additional burden of drug or 
alcohol addiction.
  We cannot allow this to continue. It is not fair to the taxpayers. It 
is not fair to the others who depend on the SSDI Program. And it is not 
even fair to the disabled addicts and alcoholics themselves.
  This bill does require better monitoring of benefits to substance 
abusers, it does mandate participation in treatment programs, and it 
does terminate benefits to addicts after 36 months.
  These are very positive and much needed improvements. I think we 
could and should do even more--and I hope that we will return to this 
issue in the near future--but this bill is a very good start at 
addressing this very serious problem.
  This bill is not and should not be controversial. As has already been 
mentioned, the House has overwhelmingly passed legislation to make 
Social Security an independent agency three times in the past.
  The provisions tightening up on benefits to addicts and alcoholics 
are pure common sense.
  And the other provisions in this bill should all help improve the 
efficiency, the fairness, and the responsiveness of the Social Security 
Program.
  Overall, it is a very good bill--a long-overdue bill--and it deserves 
the support of every Member of this body today.
  I strongly urge my colleagues to vote for this landmark legislation.
  Mr. Speaker, I reserve the balance of my time.

                              {time}  1340

  Mr. JACOBS. Mr. Speaker, we should also give a great deal of credit 
to our friend and colleague, the gentleman from Wisconsin [Mr. 
Kleczka], who offered the key amendment on drug addiction and alcoholic 
addition in the Committee on Ways and Means, a measure that was passed 
in no small measure because of the gentleman's unstinting work on the 
problem.
  Mr. Speaker, I yield 2 minutes to the first chairman of the 
Subcommittee on Social Security, the gentleman from Texas [Mr. Pickle].
  (Mr. PICKLE asked and was given permission to revise and extend his 
remarks.)
  Mr. PICKLE. Mr. Speaker, I thank the chairman for yielding.
  Mr. Speaker, I rise today in support of H.R. 4277, the Social 
Security Administrative Reform Act of 1994. As I would hope all Members 
are aware, this legislation would establish the Social Security 
Administration as an independent agency, thereby helping to insulate 
this vital program from partisan political pressures. The House has 
overwhelmingly voted in favor of this provision in the past, and, 
earlier this year, the Senate, under the able leadership of Senator 
Moynihan, recognized the merits of this approach.
  In addition, this bill contains several important provisions which 
are the result of investigations by the Subcommittee on Oversight, 
including: Preventing fraud by middlemen in obtaining benefits through 
the Social Security and SSI disability insurance programs; requiring 
periodic continuing disability reviews for people receiving benefits 
under the SSI Disability Insurance Program--an amendment by Mr. Herger; 
and prohibiting the misuse of symbols, emblems, or names related to the 
Social Security Administration, the Health Care Financing 
Administration, and the Treasury Department.
  Each of these reforms will protect American taxpayers from currently 
widespread abuse in these programs which are so important to the 
general public welfare. They will prevent the payments of hundreds of 
millions of dollars of benefits to those who are not entitled to 
benefits. In addition, they will preserve public confidence in the 
ability of the Federal Government to properly administer these 
programs.
  I am pleased to note that these reforms are the result of the 
bipartisan efforts of the Members of the Committee. I would 
particularly note the leadership of Chairman Andy Jacobs and Harold 
Ford who have worked closely on these issues with Amo Houghton, Jim 
Bunning, Rick Santorum, and Wally Herger. I strongly urge that Members 
of both sides of the aisle come together in support of this important 
package of reforms.
  Mr. BUNNING. Mr. Speaker, I yield 2 minutes to the gentleman from 
Wisconsin [Mr. Roth].
  Mr. ROTH. Mr. Speaker, I thank my good friend from Kentucky for 
yielding.
  Mr. Speaker, I support today's bill to reform our Social Security 
System. Under this bill, Social Security will become a separate agency, 
walled off from political mischief, to protect the hard-earned benefits 
of Social Security recipients. We will also impose some tough 
restrictions on drug addicts and alcoholics who abuse their benefits.
  Today's bill, while it does not go as far as I would like it to, it 
will at least go in the right direction. I urge the Members of Congress 
to pass these reforms to protect our Social Security recipients' 
benefits and to guarantee Americans a secure retirement.
  Mr. Speaker, as chairman of the House Republican Social Security Task 
Force, I support this Social Security Administrative Reform Act. Social 
Security is a trust between the American people and their Government. 
In recent years, that trust has eroded.
  First, senior citizens are justifiably upset that political and 
budget battles have put their hard-earned Social Security benefits many 
times in jeopardy. Why, just last year the Clinton administration 
forced through this Congress a $26.5 billion Social Security tax on 
Social Security recipients.
  The American people are outraged that drug addicts and alcoholics are 
spending their supplemental security income and Social Security 
disability insurance benefits on drugs and alcohol.

                              {time}  1350

  While the time for solutions is long overdue, today's House action 
will take us at least a step in the right direction. Today's bill will 
make Social Security an independent agency to protect Americans' 
retirement funds from political and budget battles. Every Social 
Security beneficiary, both current and future, must be assured that his 
and her benefits will be secure and that the program will be 
administered fairly and soundly.
  By walling off Social Security as an independent agency, Congress 
will help to assure the American people that Social Security funds will 
be used for Social Security purposes only.
  Today's bill also will tighten the rules for drug addicts and 
alcoholics who receive these benefits. As I testified before the 
subcommittee back in February, the American people are outraged that 
our Social Security has degenerated into a cash cow for addicts. This 
goes in the right direction in making those corrections.
  Mr. JACOBS. Mr. Speaker, I yield 2 minutes to our hard-working 
colleague, the gentlewoman from Connecticut [Mrs. Kennelly].
  (Mrs. KENNELLY asked and was given permission to revise and extend 
her remarks.)
  Mrs. KENNELLY. Mr. Speaker, in a world of few guarantees, one should 
stand out as inviolate--the promise of Social Security benefits.
  We are considering a bill today that will help us make good on this 
promise of future security--a bill to make the Social Security 
Administration an independent agency.
  This bill will put Social Security Administration above the fray. It 
will help ensure that policy is made with regard only to beneficiaries. 
It will help us keep our promises and our guarantees, and it will help 
the men and women who depend on these benefits.
  Every time I am at home, I hear from seniors who are concerned about 
their benefits, who are worried that changes in Washington may affect 
them unnecessarily. This bill will help ensure that their benefits will 
be protected and will be there when they need them.
  Mr. Speaker, I urge my colleagues to pass this bill. It is long 
overdue.
  Mr. BUNNING. Mr. Speaker, I yield 2 minutes to the gentleman from 
Alabama [Mr. Bachus].
  (Mr. BACHUS of Alabama asked and was given permission to revise and 
extend his remarks.)
  Mr. BACHUS of Alabama. Mr. Speaker, I rise today in full support of 
H.R. 4277. I am cosponsor of that legislation, and I want to commend 
the gentleman from Indiana [Mr. Jacobs], the gentleman from Kentucky 
[Mr. Bunning], the gentleman from Illinois [Mr. Rostenkowski], and the 
gentleman from Texas [Mr. Archer], and the gentleman from Texas [Mr. 
Pickle] for their fine work.
  We must protect our Social Security system from the political 
spending practices and gimmickry that we have seen in this Congress and 
from this administration. This protection is all the more mandatory in 
these days of $300 billion deficits. By making Social Security an 
independent agency this legislation will help insulate our Social 
Security funds from such mischief.
  Americans deserve a return on their investment, an investment they 
believe they make when they contribute to Social Security out of every 
paycheck. Making Social Security an independent agency is an important 
step in assuring that they get that return. And finally, this 
legislation will go a great distance in helping ensure that Social 
Security is there for our seniors and every working American who 
invested in the system.
  Mr. Speaker, I have stood on this floor on several occasions to warn 
of the impending insolvency of the Social Security Disability Trust 
Fund. Today the disability system is already in serious financial 
trouble. Unless we in Congress act now, the disability fund will be 
totally bankrupt by 1995. Last year alone, the Disability Trust Fund 
lost over $3 billion, and is expected to show a deficit of over $118 
billion by the year 2002 unless this Congress takes action. The Clinton 
administration has requested that $16 billion be diverted from the Old 
Age and Survivors Insurance Trust Fund to shore up the Disability Trust 
Fund. Mr. Speaker, this is no solution.
  Instead, we must have a top to bottom reform of the Social Security 
disability system. I see this legislation as a first step in that 
process. I commend the gentleman from Indiana [Mr. Jacobs] for offering 
it.
  I am also very pleased that my amendment requiring the Department of 
Health and Human Services to Investigate the causes of the impending 
insolvency of the Disability Trust Fund, and make recommendations on 
how to correct them, has been included in this bill. I thank the 
gentleman from Texas [Mr. Archer] for offering the amendment in 
committee on my behalf.
  The study, now required by this legislation, is to be completed by 
December 31. It will identify problems and offer solutions to make the 
Disability Trust Fund sound and solvent. We can not continue to throw 
money at this problem, but instead must use this study as a road map to 
make additional changes which will be necessary if we are to save the 
Disability Trust Fund.
  There is no need for us to reach a crisis atmosphere before we act. 
There is every need for us to avoid a last-ditch effort in bailing out 
the Social Security System. I urge you, pass this important legislation 
now.
  Mr. JACOBS. Mr. Speaker, I yield 3 minutes to the gentleman from 
Wisconsin [Mr. Kleczka], a member on the committee who has worked the 
hardest on this addiction problem.
  (Mr. KLECZKA asked and was given permission to revise and extend his 
remarks.)
  Mr. KLECZKA. Mr. Speaker, I rise in support of H.R. 4277 and urge my 
colleagues to do the same. I am particularly pleased to see that this 
bill addresses the Supplemental Security Income [SSI] Program, which is 
in dire need of reform.
  In recent months, SSI has been the subject of widespread public 
outrage. Reports abound of alcoholics and drug addicts using taxpayer 
money to finance their habits and of parents encouraging children to 
misbehave in school so they can qualify for benefits.
  Clearly, the system is not working and H.R. 4277 takes a much-needed 
step toward fixing it. Under current law, substance abusers whose 
addictions are serious enough to qualify as disabling can receive SSI 
if they are low income. These recipients are required to undergo 
treatment and receive benefits through a representative payee. However, 
a General Accounting Office study shows that the Social Security 
Administration [SSA], which runs the program, is not adequately 
tracking these individuals. It can confirm that only 9 percent of these 
substance abusers are in treatment. And, a full 84 percent are lost in 
the system.
  Moreover, a recent Department of Health and Human Services Office of 
Inspector General study finds that few SSI recipients leave the program 
because of successful treatment. This study, which looked at 196 drug 
addicts and alcoholics, found only one case where a recipient left the 
rolls due to successful rehabilitation. In fact, the most common reason 
for termination of benefits is death. These statistics show a drastic 
need for change.
  We must balance the need to assist substance abusers who genuinely 
want to help themselves with our responsibility to protect valuable 
taxpayer dollars from misuse. By providing addicts an opportunity to 
rehabilitate, the bill provides such a balance. Included in the bill is 
a provision I offered, in conjunction with Mr. Brewster of Oklahoma, 
which sets a lifetime limitation of 36 months on the amount of time a 
substance abuser can receive disability benefits. This provision sends 
a clear message that Federal assistance cannot last forever. And, it 
will save taxpayers approximately $940 million over 5 years in the 
process of strengthening the program.
  When the bill is signed into law, drug addicts and alcoholics will 
find it far more difficult to abuse the system. They will not be 
permitted to use fellow addicts and bartenders as representative 
payees, or safekeepers of their Federal checks. Drug addicts will also 
find that they must remain in treatment and pass drug tests if they are 
to remain on the program. If they fail to comply with the treatment 
requirement, they will be suspended from the program until they 
demonstrate compliance. Each successive time they are suspended, they 
will have to demonstrate their compliance for a progressively longer 
period.
  Another provision contained in the bill will look for ways to reduce 
fraud and abuse. It calls for a comprehensive study on the possibility 
of delivering benefits through the use of modern technology, such as 
debit cards, computer systems, and vouchers.
  H.R. 4277 also calls for an examination of SSI benefit payments to 
children. A Childhood Disability Commission is established to examine 
the program; specifically, to consider whether the current system is 
the appropriate means of offering our assistance. The question is not 
whether we should provide benefits to disabled children, but what is 
the best way of doing so?
  This bill also contains a provision I authored which mandates reviews 
of continuing disability for child recipients as they near adulthood. 
These reviews, rarely done now, will use the same eligibility criteria 
applied to adults, which evaluates whether the recipient is capable of 
earning substantial income.
  This legislation is a strong step toward a new and improved SSI. 
While the intention of this program is noble in theory, it is failing 
miserably in practice. I am hopeful these provisions will protect 
valuable taxpayer dollars, while helping recipients become productive 
members of our society.

                              {time}  1400

  The SPEAKER pro tempore (Mr. Mazzoli). The gentleman from Kentucky 
[Mr. Bunning] has 4 minutes remaining, and the gentleman from Indiana 
[Mr. Jacobs] has 7 minutes.
  Mr. BUNNING. Mr. Speaker, I yield 2 minutes to the gentleman from 
Florida [Mr. Goss].
  (Mr. GOSS asked and was given permission to revise and extend his 
remarks.)
  Mr. GOSS. Mr. Speaker, I thank my friend and distinguished colleague, 
the gentleman from the Commonwealth of Kentucky [Mr. Bunning] for 
yielding me the time. I congratulate him and the gentleman from Indiana 
[Mr. Jacobs] for bringing this legislation forward.
  Mr. Speaker, I am from Florida, and when we say the words ``Social 
Security'' in my district in Florida, we get a lot of attention 
immediately, because we have an awful lot of the Nation's seniors who 
have found the quality of life to be terrific, and are living in 
Florida, as we all know, and it is the place of choice for our 
retirees.
  Ironically, as we bring this bill up today, today's Washington Post 
reports that more than two-thirds of all Americans do not think Social 
Security will survive to pay them benefits. In other words, what they 
are saying is that they are going to outlive the Social Security 
system. Many of these or most of these, of course, are our younger 
workers. They feel they are just shoveling their hard-earned dollars 
into a bottomless pit.
  Today, with H.R. 4277, we have a chance to implement one commonsense 
Social Security amendment to help restore a level of confidence in the 
system. We have all seen the reports of the abuses in the SSI and SSDI 
programs--how drug-pushers and bartenders are cashing Government-
support checks to fund the addictions of beneficiaries.
  ``60 Minutes'' did a piece a couple of weeks ago, as everybody knows, 
everybody in Congress knows that, I am sure, because if it is like my 
district, the phones keep ringing saying, ``Why in the world do you let 
things like that happen? Does that really happen? Why don't you fix 
it?''
  Today's bill in fact will crack down on this type of fraud. It will 
put firm limits on benefits to substance abusers. Seniors in my 
district who have seen their taxes go up this year and seen their 
Medicare get cut, and are seeing predictions of more of those cuts as 
we talk about health care reform, and are penalized for returning to 
work under the earnings-limitation test, need some good news. They are 
sick of the abuses they have been subjected to, and this is some good 
news for them.
  Again, I think this is overdue good news. This should have been fixed 
a long time ago. At a time when the long-term solvency of the system is 
in doubt and we have just gotten new reports on that, showing that we 
have a larger problem than we had thought we did, taxpayers do not want 
to hear any more rhetoric about sacrifice. They want action. They want 
constructive change. They want to stop waste and they want to stop 
nonsense.
  Today we get a start at doing all of those things. I urge support of 
this and congratulate the authors.
  Mr. BUNNING. Mr. Speaker, I yield 1 minute to the gentleman from 
California [Mr. Herger].
  Mr. HERGER. Mr. Speaker, I rise in strong support of this 
legislation, which makes vitally needed reforms in the SSI disability 
and disability insurance programs.
  For too long we have allowed our disability programs to endanger the 
lives of drug addicts and alcoholics by simply providing them cash to 
feed their habits.
  Additionally, we have not taken steps to ensure that representative 
payees are responsible parties like treatment centers or Government 
agencies. As a result, one Denver liquor store owner was collecting 
$140,000 annually to run a tab for 40 alcoholics on our disability 
rolls.
  This legislation make vitally needed reforms to ensure that only 
responsible parties are named as representative payees for drug addicts 
or alcoholics. It also will end the practice of making huge lump sum 
payments to addicts. Finally, it imposes a lifetime limit of 36 months 
for disability benefits resulting from substance abuse. Treatment 
providers have told me this is critical to ensuring that addicts have 
an incentive for beating their habit and sticking with their 
rehabilitation programs.
  Mr. Speaker, I urge the immediate adoption of this legislation.
  Mr. JACOBS. Mr. Speaker, I yield 2 minutes to my eloquent colleague, 
the sheriff, the gentleman from Ohio [Mr. Traficant].
  (Mr. TRAFICANT asked and was given permission to revise and extend 
his remarks.)
  Mr. TRAFICANT. Mr. Speaker, I support this bill. I believe its 
passage is critical for the following reason: A recent General 
Accounting Office investigation, IRS, found something that really 
startled me. It said that they could not tell where the revenue came 
from. All the money was in one big pot, Social Security taxes and 
general income taxes.
  Furthermore, they said they were astounded by that, and the General 
Accounting Office said the Internal Revenue Service system of 
bookkeeping and recordkeeping was ``sloppy, sloppy.''
  I have had a lot of dealings with the IRS, Mr. Speaker, and the IRS 
is anything but sloppy. Let me give my little two cents' worth here. I 
do not believe what the IRS is telling us about the Social Security 
trust fund. Mr. Speaker, I think those moneys are commingled so they 
would, in fact, chase Congress on a wild goose chase.
  I believe what the gentleman from Florida [Mr. Goss] said is exactly 
correct. I would doubt if our grandchildren will see Social Security. I 
could be wrong. I believe the money coming in one door in Social 
Security is going out the other right now, and there is a wastebasket 
all filled up with IOU's. I want to know. In fact, I have a letter in 
there, and if the Committee on Ways and Means would do this Nation a 
favor, they would want to know if the social Security trust fund is 
what they say it is.
  I think we are being ripped off big-time. I think there is a 
wastebasket all filled up with IOU's. The Members will not lose it, 
their kids will not lose it, but I think our grandchildren will never 
see Social Security. I want to know. Show me.
  Mr. BUNNING. Mr. Speaker, to close the debate on our side, I yield 1 
minute to the gentleman from New York [Mr. Houghton] a member of the 
Subcommittee on Social Security of the Committee on Ways and Means.
  (Mr. HOUGHTON asked and was given permission to revise and extend his 
remarks.)
  Mr. HOUGHTON. Mr. Speaker, I thank the gentleman for yielding time to 
me.
  Mr. Speaker, I think 4277, this bill, makes a lot of sense. I think 
it is going to pass and it is right. I say so for two reasons. First of 
all, it is entirely appropriate that this be a separate agency. Its 
time has come. There are a lot of questions in our own mind about the 
use of Social Security funds. I think this will tighten up the 
management, it will do exactly what we want it to do, everybody, not 
just us but everybody in the country.
  Another thing, it gets at the so-called corruption and the middleman 
fraud scheme that we have been dealing with that the gentleman from 
Kentucky [Mr. Bunning] mentioned on the Committee on Ways and Means. It 
is really not right to have people coming to this country, as we all 
did at one point and another, and be taken over by a slick middleman, 
and then bilk the system of thousands of dollars for him personally, 
take a cut out of this, and say it is right for Social Security. It is 
not right. I believe this bill goes a long way to correct that.
  From the administration's standpoint, the monetary standpoint, the 
management of fraud, I think it is the right thing to do. I urge my 
colleagues to support it.
  Mr. POMEROY. Mr. Speaker, I am pleased to support legislation making 
the Social Security Administration an independent agency.
  Social Security is an important trust between Americans and their 
Government. It asks for a commitment from workers to contribute--and 
promises income assistance in retirement years. Yet the trust is too 
often threatened by Washington politics; leaving seniors--and all 
Americans--to question whether the Government will hold up its end of 
the promise.
  Independent agency status will improve administration of Social 
Security by enabling the agency to attract and retain talented 
leadership. In the past 18 years, Social Security has had 12 different 
administrators, often with periods in between when there was no 
administrator. With independent status will come increased stature and 
stability for Social Security.
  As we continue to struggle with the Federal budget, I am concerned 
about attempts to balance the budget on the backs of senior citizens 
and the disabled. Numerous seniors from North Dakota have contacted me 
about their fears of cuts to Social Security. By making Social Security 
independent, I believe we send a message to seniors that we recognize 
the importance of this program.
  Many Americans in the work force today truly believe that Social 
Security will not be there for them in their retirement years. I want 
to make sure that Social Security is a viable program for generations 
to come. Independent status will bolster the public's confidence level 
in the agency and the programs it administers.
  I look forward to seeing this legislation become law and a reality 
for all its supporters.
  Mr. ORTON. Mr. Speaker, today I am pleased to vote in favor of H.R. 
4277, a bill to create an independent Social Security Administration.
  The Social Security system plays a critical role in providing 
economic security for millions of elderly Americans struggling to make 
ends meet on fixed incomes in an inflationary environment. It is not a 
government handout. It is a retirement plan in which individuals 
contribute over their working lifetime and receive benefits when they 
retire.
  The program is financially self-sufficient. It is funded through FICA 
contributions, with an annual surplus of $50 billion and a trust fund 
that has built up to over $400 billion.
  This self-funded, self-sufficient nature of the program distinguishes 
itself from most other Federal spending. As a result, it merits 
appropriate separate treatment.
  For example, I am a strong advocate of balancing the Federal budget, 
of making the tough budget cutting choices. I have even drafted my own 
balanced-budget amendment. However, in recognition of the self-funding 
nature of Social Security, my balanced-budget proposal specifically 
exempts Social Security payments from automatic spending cuts in the 
event of a deficit.
  This is consistent with other recent efforts we have taken to 
maintain Social Security against the relentless pressures of budget 
cutting. A few years back, we took the step of putting Social Security 
off-budget. We have also required annual reports by the Board of 
Trustees of the Social Security Trust Fund, to address the long-run 
actuarial future of the system.
  Today, we are taking the further step of making the Social Security 
Administration an independent agency. Currently, the Social Security 
Commissioner reports directly to the Secretary of Health and Human 
Services. Today's legislative action would instead create an 
independent agency, with a full-time, 3-member board.
  This heightened status is proper, given the weight and importance of 
the Social Security Administration. Therefore, I am pleased to support 
this legislation, and urge my colleagues to do the same.
  Mr. MFUME. Mr. Speaker, I rise in support of H.R. 4277, which makes 
the Social Security Administration an independent agency.
  The Social Security Administration is responsible for administering 
the Old-Age and Survivors Insurance program and Disability Insurance 
program--Social Security--and the Supplemental Security Income [SSI] 
program. The Social Security Administration is the ninth largest agency 
in the Government. The bill establishes the Social Security 
Administration [SSA] as an independent agency, effective October 1, 
1995.
  The bill gives SSA additional authority to prevent benefit fraud and 
increases the penalties against deceptive mass mailings that mimic 
official Social Security correspondence.
  In my district of Baltimore, the employees of SSA have asked that I 
support this measure.
  However, Mr. Speaker, my support comes with some reservations. 
Specifically, I am concerned that Congress' desire to improve and 
advance the productivity and services of the Social Security 
Administration, while well-intentioned may not be enough. In addition 
to passing this bill, Congress must give the Social Security 
Administration the necessary resources to successfully make the 
smoother transition to independent status.
  Another concern I have stems from the fact that the bill restricts 
payment of Disability Insurance [DI] and Supplemental Security Income 
[SSI] for persons with drug and alcohol additions. Under current law, 
SSI recipients who have substance abuse problems are required to be 
paid through a designated second party. Unfortunately, there have been 
cases in which the alleged supplier of the drug to the abuser was the 
representative payee.
  In a provision I support, this bill requires that where possible, 
organizations, rather than family or friends, be named as 
representative payees for Disability Insurance and Supplemental 
Security Income recipients.
  However, the bill requires that the Social Security establish 
agencies in all 50 States that would find treatment programs for DI and 
SSI beneficiaries who are substance abusers, monitor their 
participation in the treatment program, and periodically conduct drug 
tests to determine if substance abuse problems are continuing. Under 
the bill, people with substance abuse problems who are receiving 
Disability Insurance would be required to participate in treatment, if 
available, in order to receive benefits. Regardless of participation in 
the treatment program, DI and SSI benefits to substance abusers would 
be cut off after 3 years unless the individual qualifies for benefits 
for reason other than the substance abuse problem. This will require 
the Social Security agency to become involved in a whole new activity; 
drug testing. I have a number of problems with this, but that 
discussion is better left for another time.
  Mr. Speaker, it is my hope this bill will pass to allow the Social 
Security Administration to become an independent agency. It is my 
further hope that we recognize the need to give this new Agency 
adequate resources to improve and provide better service.
  Mr. BORSKI. Mr. Speaker, I rise in strong support of H.R. 4277, the 
Social Security Administrative Reform Act.
  A few weeks ago, the trustees of the Social Security trust fund 
reported that funds for paying benefits will run out in 2029, 7 years 
earlier than estimated last year. This report highlights the need for 
Congress to make some meaningful changes in the Social Security system.
  Today, 9 out of 10 workers contribute payroll taxes to the Social 
Security trust fund with the promise that they will get benefit 
payments when they retire. It is our responsibility to the American 
work force to protect and strengthen the Social Security system to 
ensure that the Federal Government keeps this promise to both current 
recipient's and future beneficiaries.
  H.R. 4277 is a step in this direction. In recent years, the 
Government agency that administrators Social Security has been 
vulnerable to political and budgetary pressures. There have been 
numerous cutbacks in the administration of this program, despite the 
growing number of recipients. The result has been increased payment 
errors, unanswered phones and a backlog on processing applications.
  This legislation would separate the Social Security Administration 
from the Department of Health and Human Services [HHS] and make it an 
independent agency governed by a Social Security Board. The Board would 
be independent and bipartisan, and its members would serve staggered 6-
year terms.
  I believe making Social Security an independent agency will free its 
operations from short-term political pressure and help restore public 
confidence in the Social Security system. I urge all my colleagues to 
support this legislation.
  Mr. THOMAS of California. Mr. Speaker, I want to express my support 
for the new provisions in H.R. 4277. The bill will stop drug addicts 
and alcoholics from abusing the Social Security disability and 
Supplementary Security income programs.
  This legislation is important to my district and to the country. 
People have been outraged to find that addicts who were supposed to be 
getting treatment to end their addiction were able to use taxpayer 
dollars to subsidize their habits. After reports of addicts being 
arrested with literally thousands of dollars of Social Security 
benefits in their possession began appearing in local newspapers, I met 
with government officials and others to seek new ways to prevent 
addicts from using Social Security benefits to feed their habits. I 
introduced a bill, H.R. 1712, in light of the suggestions I received 
and I am pleased to say that H.R. 4277 includes several of the 
important changes I recommended.
  H.R. 4277 cracks down on addicts who skip treatment, following my 
proposal's suggestion that increasing penalties be used to discourage 
addicts from thinking they can keep using drugs when they are supposed 
to be in treatment seeking a cure. Addicts who get caught continuing to 
use drugs are subjected to penalties. The first time they're caught, 
they lose 2 months benefits; the second time, 3 months benefits. The 
third time they're caught, the suspension is even longer.
  H.R. 4277 also expands the use of representative payees for addicts. 
I found that addicts often pick friends or family today to serve as the 
recipient of their benefits and then pressure these payees to give them 
the money without any controls. H.R. 4277 does two important things to 
change that.
  Under the bill, State and local agencies can serve as representative 
payees. This means that agencies concerned about seeing addicts go 
through treatment will be able to control their funds. The bill also 
provides a model for resolving the unfunded mandates problem because it 
incorporates my amendment to allow State and local agencies to take up 
to 10 percent of an addict's benefit in order to pay for the cost of 
providing services.
  Finally, I am pleased that the bill incorporates suggestions that we 
limit benefits to addicts to a maximum of 36 months because it sends a 
message that they have to seriously seek treatment while they are 
eligible.
  Altogether, these provisions will save taxpayers billions of dollars. 
They are appropriate steps toward bringing addiction under control and 
I hope they can be enacted this year.
  Mr. POSHARD. Mr. Speaker, I want to thank my Illinois colleague, 
Chairman Rostenkowski, and the members of the committee who have worked 
to bring this bill to the floor.
  While there are a number of important changes being made in the 
administration of Social Security Programs, I would like to focus on 
reforms being implemented to restrict disability insurance and SSI 
disability payments to substance abusers.
  This issue came to the forefront in my district not long ago when the 
Decatur Herald and Review newspaper published a series of articles 
outlining deficiencies in our Social Security system.
  The bill we are approving today makes a number of important changes:
  Paying DI benefits to a representative payee.
  Having organizations, rather than family or friends serve as the 
representative payee.
  Conditioning eligibility for DI benefits on participation in a 
treatment program.
  Importantly, the bill also stops benefits to substance abusers after 
36 months.
  As I discussed these proposals with my colleagues, including the 
gentleman from Wisconsin, Congressman Kleczka, I also sought the advice 
of the Honorable James A. Hendrian, who works through these cases on a 
daily basis in his courtroom.
  The judge tells troubling stories about persons receiving benefits 
for disabilities which are the direct result of criminal activity.
  Judge Hendrian also sees numerous cases where disabilities for which 
people are receiving benefits appear to be based on little if any 
factual evidence--other than the simple claim of disability.
  Like so many other Government programs * * * our resources to assist 
and support legitimate claims are being sapped by those who abuse the 
system.
  To quote Judge Hendrian:

       While I am sure that there are many deserving and needy 
     people receiving benefits, there are far too many who are 
     abusing the system. Meaningful reform, monitoring and 
     limitation of benefits under certain circumstances is a 
     start.

  If people are disabled due to their alcohol and drug addiction they 
should receive treatment to recover and become productive citizens once 
again.
  But we should not finance a long-term program of disability programs 
for people who are not willing to take responsibility for getting 
better.
  I also thank the committee for its attention to the problem of 
school-age children who are receiving SSI benefits.
  This is the headline from the Decatur Herald and Review.
  ``Teachers feel they fight losing battle with SSI. They say they 
encourage success, while parents encourage failure.''
  I realize that the Supreme Court ruling has made it easier for 
children to qualify for SSI.
  But we have to look at further ways to restrict SSI eligibility * * * 
and the amendment included by the committee to require disabled 
children receiving SSI benefits to be reviewed for continuing 
disability by their 19th birthday is a start.
  I've been an educator all my life. I've taught in the classroom and 
administered educational programs.
  I don't want to take any action which would limit a child's 
opportunity to overcome adversity and realize his or her potential.
  But if it is determined that some physical or mental condition 
qualifies a child for SSI payments * * * we should ensure that child is 
in an appropriate therapy program * * * is attending school * * * and 
the payments are going to a responsible party which can help see to it 
that those benefits are being used in the proper manner.
  I know the committee has great concerns about this issue and I pledge 
my support for further action.
  Again, I thank the people in Decatur who have helped bring attention 
to this problem, and my colleagues on the committee who are trying to 
do something about it.
  The SPEAKER pro tempore. The time of the gentleman from Kentucky [Mr. 
Bunning] has expired.
  Mr. JACOBS. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. All time has expired.
  The question is on the motion offered by the gentleman from Illinois 
[Mr. Rostenkowski] that the House suspend the rules and pass the bill, 
H.R. 4277, as amended.
  The question was taken.
  Mr. JACOBS. Mr. Speaker, I object to the vote on the ground that a 
quorum is not present and make the point of order that a quorum is not 
present.
  The SPEAKER pro tempore. Pursuant to clause 5 of rule I, and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.
  The point of no quorum is considered withdrawn.

                          ____________________