[Congressional Record Volume 140, Number 65 (Monday, May 23, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: May 23, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
           SOCIAL SECURITY ADMINISTRA-TIVE REFORM ACT OF 1994

  Mr. MITCHELL. Mr. President, I ask unanimous consent that the Senate 
proceed to the consideration of Calendar No. 433, H.R. 4277, the Social 
Security Administration Reform Act; that all after the enacting clause 
be stricken and the text of S. 1560, as passed the Senate, be inserted 
in lieu thereof; that the bill be advanced to third reading, passed, 
and the motion to reconsider be laid upon the table; that the Senate 
insist on its amendment, request a conference with the House on the 
disagreeing votes of the two Houses, and that the Chair be authorized 
to appoint conferees; further, that any statements relating thereto 
appear in the Record at the appropriate place as if read.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  So the bill (H.R. 4277), as amended, was passed, as follows:
       Resolved, That the bill from the House of Representatives 
     (H.R. 4277) entitled ``An Act to establish the Social 
     Security Administration as an independent agency and to make 
     other improvements in the old-age, survivors, and disability 
     insurance program'', do pass with the following amendment:
       Strike out all after the enacting clause and insert:

     SECTION 1. SHORT TITLE; AMENDMENT OF SOCIAL SECURITY ACT; 
                   TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Social 
     Security Administration Independence Act of 1994''.
       (b) Amendment of Social Security Act.--Except as otherwise 
     expressly provided, whenever in this Act an amendment is 
     expressed in terms of an amendment to or repeal of, a section 
     or other provision, the reference shall be considered to be 
     made to that section or other provision of the Social 
     Security Act.
       (c) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; amendment of Social Security Act; table of 
              contents.

            TITLE I--ESTABLISHMENT OF NEW INDEPENDENT AGENCY

Sec. 101. Establishment of Social Security Administration as a 
              separate, independent agency.
Sec. 102. Commissioner and Deputy Commissioner of Social Security.
Sec. 103. Social Security Advisory Board.
Sec. 104. Personnel; budgetary matters; seal of office.
Sec. 105. Transfers to the new Social Security Administration.
Sec. 106. Transitional rules.
Sec. 107. Effective dates.

                    TITLE II--CONFORMING AMENDMENTS

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

        TITLE III--SOCIAL SECURITY DISABILITY AND REHABILITATION

Sec. 301. Short title.
Sec. 302. Reform of monthly insurance benefits based on disability 
              involving substance abuse.
Sec. 303. Priority of treatment.
Sec. 304. Establishment of referral monitoring agencies required in all 
              States.
Sec. 305. Proceeds from certain criminal activities constitute 
              substantial gainful employment.
Sec. 306. Consistent penalty provisions for SSDI and SSI programs.
            TITLE I--ESTABLISHMENT OF NEW INDEPENDENT AGENCY

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

       Section 701 (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 (hereafter in this title referred to 
     as the `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. COMMISSIONER AND DEPUTY COMMISSIONER OF SOCIAL 
                   SECURITY.

       Section 702 (42 U.S.C. 902) is amended to read as follows:


                 ``COMMISSIONER AND DEPUTY COMMISSIONER

                   ``Commissioner of Social Security

       ``Sec. 702. (a)(1) There shall be in the Administration a 
     Commissioner of Social Security (hereafter in this title 
     referred to as the `Commissioner') who shall be appointed by 
     the President, with the advice and consent of the Senate.
       ``(2) The Commissioner shall be compensated at the rate 
     provided for level I of the Executive Schedule.
       ``(3) The Commissioner shall be appointed for a term of 4 
     years coincident with the term of the President, or until the 
     appointment of a qualified successor.
       ``(4) The Commissioner shall be responsible for the 
     exercise of all powers and the discharge of all duties of the 
     Administration, and shall have authority and control over all 
     personnel and activities thereof.
       ``(5) The Commissioner may prescribe such rules and 
     regulations as the Commissioner determines necessary or 
     appropriate to carry out the functions of the Administration. 
     The regulations prescribed by the Commissioner shall be 
     subject to the rulemaking procedures established under 
     section 553 of title 5, United States Code.
       ``(6) The Commissioner may establish, alter, consolidate, 
     or discontinue such organizational units or components within 
     the Administration as the Commissioner considers necessary or 
     appropriate, except that this paragraph shall not apply with 
     respect to any unit, component, or provision provided for by 
     this Act.
       ``(7) The Commissioner may assign duties, and delegate, or 
     authorize successive redelegations of, authority to act and 
     to render decisions, to such officers and employees of the 
     Administration as the Commissioner 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 Commissioner.
       ``(8) The Commissioner and the Secretary of Health and 
     Human Services (hereafter in this title referred to as the 
     `Secretary') shall consult, on an ongoing basis, to ensure--
       ``(A) the coordination of the programs administered by the 
     Commissioner, as described in section 701, with the programs 
     administered by the Secretary under titles XVIII and XIX of 
     this Act; and
       ``(B) that adequate information concerning benefits under 
     such titles XVIII and XIX shall be available to the public.

                ``Deputy Commissioner of Social Security

       ``(b)(1) There shall be in the Administration a Deputy 
     Commissioner of Social Security (hereafter in this title 
     referred to as the `Deputy Commissioner') who shall be 
     appointed by the President, with the advice and consent of 
     the Senate.
       ``(2) The Deputy Commissioner shall be appointed for a term 
     of 4 years coincident with the term of the Commissioner, or 
     until the appointment of a qualified successor.
       ``(3) The Deputy Commissioner shall be compensated at the 
     rate provided for level II of the Executive Schedule.
       ``(4) The Deputy Commissioner shall perform such duties and 
     exercise such powers as the Commissioner shall from time to 
     time assign or delegate. The Deputy Commissioner shall be 
     Acting Commissioner of the Administration during the absence 
     or disability of the Commissioner and, unless the President 
     designates another officer of the Government as Acting 
     Commissioner, in the event of a vacancy in the office of the 
     Commissioner.''.

     SEC. 103. SOCIAL SECURITY ADVISORY BOARD.

       Section 703 (42 U.S.C. 903) is amended to read as follows:


                    ``Social Security Advisory Board

                        ``Establishment of Board

       ``Sec. 703. (a) There shall be established a Social 
     Security Advisory Board (hereinafter referred to as the 
     `Board').

                        ``Functions of the Board

       ``(b) The Board shall advise the Commissioner on policies 
     related to the old-age, survivors, and disability insurance 
     program under title II and the supplemental security income 
     program under title XVI. Specific functions of the Board 
     shall include--
       ``(1) analyzing the Nation's retirement and disability 
     systems and making recommendations with respect to how the 
     old-age, survivors, and disability insurance program and the 
     supplemental security income program, supported by other 
     public and private systems, can most effectively assure 
     economic security;
       ``(2) studying and making recommendations relating to the 
     coordination of programs that provide health security with 
     programs described in paragraph (1);
       ``(3) making recommendations to the President and to the 
     Congress with respect to policies that will ensure the 
     solvency of the old-age, survivors, and disability insurance 
     program, both in the short-term and the long-term;
       ``(4) making recommendations to the President of candidates 
     to consider in selecting nominees for the position of 
     Commissioner and Deputy Commissioner;
       ``(5) reviewing and assessing the quality of service that 
     the Administration provides to the public;
       ``(6) reviewing and making recommendations with respect to 
     policies and regulations regarding the old-age, survivors, 
     and disability insurance program and the supplemental 
     security income program;
       ``(7) increasing public understanding of the social 
     security system;
       ``(8) in consultation with the Commissioner, reviewing the 
     development and implementation of a long-range research and 
     program evaluation plan for the Administration;
       ``(9) reviewing and assessing any major studies of social 
     security as may come to the attention of the Board; and
       ``(10) conducting such other reviews and assessments that 
     the Board determines to be appropriate.

                ``Structure and Membership of the Board

       ``(c) The Board shall be composed of 7 members who shall be 
     appointed as follows:
       ``(1) 3 members shall be appointed by the President, with 
     the advice and consent of the Senate. Not more than 2 of such 
     members shall be from the same political party.
       ``(2) 2 members (each member from a different political 
     party) shall be appointed by the President pro tempore of the 
     Senate with the advice of the Chairman and the Ranking 
     Minority Member of the Senate Committee on Finance.
       ``(3) 2 members (each member from a different political 
     party) shall be appointed by the Speaker of the House of 
     Representatives, with the advice of the Chairman and the 
     Ranking Minority Member of the House Committee on Ways and 
     Means.

                         ``Terms of Appointment

       ``(d) Each member of the Board shall serve for a term of 6 
     years, except that--
       ``(1) a member appointed to fill a vacancy occurring prior 
     to the expiration of the term for which a predecessor was 
     appointed, shall be appointed for the remainder of such term; 
     and
       ``(2) the terms of service of the members initially 
     appointed under this section shall expire as follows:
       ``(A) The terms of service of the members initially 
     appointed by the President shall expire as designated by the 
     President at the time of nomination, 1 each at the end of--
       ``(i) 2 years;
       ``(ii) 4 years; and
       ``(iii) 6 years.
       ``(B) The terms of service of members initially appointed 
     by the President pro tempore of the Senate shall expire as 
     designated by the President pro tempore of the Senate at the 
     time of nomination, 1 each at the end of--
       ``(i) 4 years; and
       ``(ii) 6 years.
       ``(C) The terms of service of members initially appointed 
     by the Speaker of the House of Representatives shall expire 
     as designated by the Speaker of the House of Representatives 
     at the time of nomination, 1 each at the end of--
       ``(i) 3 years; and
       ``(ii) 5 years.

                               ``Chairman

       ``(e) A member of the Board shall be designated by the 
     President to serve as Chairman for a term of 4 years, 
     coincident with the term of the President, or until the 
     designation of a successor.

                             ``Compensation

       ``(f) Members of the Board shall be compensated as follows:
       ``(1) Members shall be paid at a rate equal to 25 percent 
     of the rate for level III of the Executive Schedule.
       ``(2) For days when the Board or any authorized 
     subcommittee of the Board meets, members who attend meetings 
     on such days (including travel time) shall receive additional 
     compensation in an amount equal to the daily equivalent of 
     the rate for level III of the Executive Schedule.
       ``(3) While serving on business of the Board away from 
     their homes or regular places of business, members 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 in the Government employed 
     intermittently.
       ``(4) Service on the Board shall not be treated as Federal 
     service or employment for purposes of receiving any benefits 
     under chapters 83, 84, and 87 of title 5, United States Code.
       ``(5) A member of the Board may elect coverage of a health 
     benefits plan under chapter 89 of title 5, United States 
     Code. Such a member electing coverage shall have the 
     applicable employee contributions under section 8906 of such 
     title withheld from pay for service as a member of the Board. 
     The Administration shall pay the applicable Government 
     contributions under such section 8906 for such member. The 
     Office of Personnel Management shall promulgate regulations 
     to apply the provisions of chapter 89 of such title to Board 
     members electing coverage as provided under this paragraph.

                               ``Meetings

       ``(g) The Board shall meet not less than 6 times each year 
     to consider a specific agenda of issues, as determined by the 
     Chairman in consultation with the other members of the Board.

                    ``Federal Advisory Committee Act

       ``(h) The Board shall be exempt from the provisions of the 
     Federal Advisory Committee Act (5 U.S.C. App.).

                              ``Personnel

       ``(i)(1) The Board shall, without regard to title 5, United 
     States Code, appoint a Staff Director who shall be paid at a 
     rate equivalent to a rate for the Senior Executive Service.
       ``(2) The Board is authorized, without regard to title 5, 
     United States Code, to appoint and fix the compensation of 
     such additional personnel as the Board determines to be 
     necessary to carry out the functions of the Board.
       ``(3) In fixing the compensation of additional personnel 
     under paragraph (2), the Board shall not authorize that any 
     individual appointed under such paragraph be compensated at a 
     rate that is greater than the rate of compensation of the 
     Staff Director described in paragraph (1).

                    ``Authorization of Appropriation

       ``(j) There are authorized to be made available for 
     expenditure, out of the Federal Disability Insurance Trust 
     Fund, the Federal Old Age and Survivors Insurance Trust Fund, 
     and the general fund in the Treasury, such sums as the 
     Congress may deem appropriate to carry out the purposes of 
     this section.''.

     SEC. 104. PERSONNEL; BUDGETARY MATTERS; SEAL OF OFFICE.

       Section 704 is amended to read as follows:


              ``ADMINISTRATIVE DUTIES OF THE COMMISSIONER

                              ``Personnel

       ``Sec. 704. (a)(1) The Commissioner shall appoint such 
     additional officers and employees as the Commissioner 
     considers necessary to carry out the functions of the 
     Administration under this Act. 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 Commissioner may procure the services of experts 
     and consultants in accordance with the provisions of section 
     3109 of title 5, United States Code.
       ``(3) Notwithstanding any requirements of section 3133 of 
     title 5, United States Code, the Director of the Office of 
     Personnel Management shall authorize for the Administration a 
     total number of Senior Executive Service positions which is 
     substantially greater than the number of such positions 
     authorized in the Social Security Administration in the 
     Department of Health and Human Services as of immediately 
     before the date of the enactment of the Social Security 
     Administration Independence Act of 1994 to the extent that 
     the greater number of such authorized positions is specified 
     in the comprehensive work force plan as established and 
     revised by the Commissioner under subsection (b)(1). The 
     total number of such positions authorized for the 
     Administration shall not at any time be less than the number 
     of such authorized positions as of immediately before such 
     date.

                           ``Budgetary Matters

       ``(b)(1) Appropriations requests for staffing and personnel 
     of the Administration shall be based upon a comprehensive 
     work force plan, which shall be established and revised from 
     time to time by the Commissioner.
       ``(2) Appropriations for administrative expenses of the 
     Administration are authorized to be provided on a biennial 
     basis.
       ``(3) Funds appropriated for the Administration to be 
     available on a contingency basis shall be apportioned upon 
     the occurrence of the stipulated contingency, as determined 
     by the Commissioner and reported to the Congress.

                        ``Employment Restriction

       ``(c) The number of positions in the Administration which 
     may be excepted from the competitive service, on a temporary 
     or permanent basis, because of the confidential or policy-
     determining character of such positions, may not exceed at 
     any time the equivalent of 10 full-time positions.

                            ``Seal of Office

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

     SEC. 105. 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 title 
     and the amendments made thereby. The Commissioner of Social 
     Security shall allocate such functions in accordance with 
     sections 701, 702, 703, and 704 of the Social Security Act 
     (as amended by this title).
       (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 
     Commissioner of Social Security in the Social Security 
     Administration--
       (A) the personnel employed in connection with the functions 
     transferred by this title and the amendments made thereby; 
     and
       (B) the assets, liabilities, contracts, property, records, 
     and unexpended balance of appropriations, authorizations, 
     allocations, and other funds employed, held, or used in 
     connection with such functions, arising from such functions, 
     or available, or to be made available, in connection with 
     such functions.
       (2) Unexpended funds transferred pursuant to this 
     subsection shall be used only for the purposes for which the 
     funds were originally authorized and appropriated.
       (3) Any individual who is an employee of the Department and 
     who was not employed on the date of the enactment of this 
     title, in connection with functions transferred by this title 
     to the Administration, but who was so employed on the day 
     before the date established pursuant to section 107(a), may 
     be transferred from the Department of Health and Human 
     Services to the Social Security Administration by the 
     Commissioner under subparagraph (A) of paragraph (1), after 
     consultation with the Secretary of Health and Human Services, 
     if the Commissioner determines such transfer to be 
     appropriate.
       (4) Any individual who is an employee of the Department and 
     who was employed on the date of the enactment of this title, 
     solely in connection with functions transferred by this title 
     to the Administration, and who was so employed on the day 
     before the date established pursuant to section 107(a), shall 
     be transferred from the Department of Health and Human 
     Services to the Social Security Administration.
       (c) Abolishment of Office of Commissioner in the Department 
     of Health and Human Services.--Effective upon the appointment 
     of a Commissioner of Social Security pursuant to section 702 
     of the Social Security Act (as amended by this title)--
       (1) the position of Commissioner of Social Security in the 
     Department of Health and Human Services is abolished; and
       (2) section 5315 of title 5, United States Code, is amended 
     by striking the following:
       ``Commissioner of Social Security, Department of Health and 
     Human Services.''.

     SEC. 106. TRANSITIONAL RULES.

       (a) Transition Director.--(1) Within 30 days after the date 
     of the enactment of this Act, a transition director shall be 
     appointed by the President, who shall be selected on the 
     basis of experience and knowledge of the operation of the 
     Government.
       (2) The transition director shall conduct activities 
     necessary to ensure the transition of the Social Security 
     Administration to the status of an independent agency in the 
     executive branch of the Government. In conducting such 
     activities before the appointment of the Commissioner of 
     Social Security, the transition director shall consult 
     regularly with the Director of the Office of Management and 
     Budget. Upon such appointment, the transition director shall 
     conduct such activities at the direction of the Commissioner 
     of Social Security.
       (3) The transition director shall be compensated at the 
     rate provided for level IV of the Executive Schedule.
       (4) Expenditures to carry out the purposes of this 
     subsection shall be made out of the Federal Old Age and 
     Survivors Insurance Trust Fund and the Federal Disability 
     Insurance Trust Fund.
       (b) Interim Authority for Appointment and Compensation.--
       (1) Appointment of commissioner.--Within 60 days of the 
     date of the enactment of this title, the Commissioner of 
     Social Security shall be appointed by the President pursuant 
     to section 702 of the Social Security Act (as amended by this 
     title). If the appointment is made pursuant to such section 
     before the date established pursuant to section 107(a), the 
     Commissioner of Social Security shall also perform the duties 
     assigned to the Commissioner of Social Security in the 
     Department of Health and Human Services.
       (2) Other appointments.--At any time on or after the date 
     of the enactment of this title any of the other officers 
     provided for in sections 702 and 703 of the Social Security 
     Act (as amended by this title) may be nominated and 
     appointed, as provided in such sections.
       (3) Compensation.--Funds available to any official or 
     component of the Department of Health and Human Services, 
     functions of which are transferred to the Commissioner of 
     Social Security or the Social Security Administration by this 
     title, may with the approval of the Director of the Office of 
     Management and Budget, be used to pay the compensation and 
     expenses of any officer appointed pursuant to this subsection 
     until such time as funds for that purpose are otherwise 
     available.
       (c) Continuation of Orders, Determinations, Rules, 
     Regulations, Etc.--All orders, determinations, rules, 
     regulations, permits, contracts, collective bargaining 
     agreements (and ongoing negotiations relating to such 
     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 the Secretary's delegate), and (B) which relate 
     to functions which, by reason of this title, the amendments 
     made thereby, and regulations prescribed thereunder, are 
     vested in the Commissioner of Social Security; and
       (2) which are in effect immediately before the date 
     established pursuant to section 107(a),

     shall (to the extent that they relate to functions described 
     in paragraph (1)(B)) continue in effect according to their 
     terms until modified, terminated, suspended, set aside, or 
     repealed by such Commissioner, except that any collective 
     bargaining agreement shall remain in effect until the date of 
     termination specified in such agreement.
       (d) Continuation of Proceedings.--The provisions of this 
     title (including the amendments made thereby) shall not 
     affect any proceeding pending before the Secretary of Health 
     and Human Services immediately before the date established 
     pursuant to section 107(a), with respect to functions vested 
     (by reason of this title, the amendments made thereby, and 
     regulations prescribed thereunder) in the Commissioner of 
     Social Security, except that such proceedings, to the extent 
     that such proceedings relate to such functions, shall 
     continue before such Commissioner. 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 title had not been enacted, and orders 
     issued in any such proceeding shall continue in effect until 
     modified, terminated, superseded, or repealed by such 
     Commissioner, by a court of competent jurisdiction, or by 
     operation of law.
       (e) Continuation of Suits.--Except as provided in this 
     subsection--
       (1) the provisions of this title shall not affect suits 
     commenced before the date established pursuant to section 
     107(a); and
       (2) in all such suits proceedings shall be had, appeals 
     taken, and judgments rendered, in the same manner and effect 
     as if this title had not been enacted.

     No cause of action, and no suit, action, or other proceeding 
     commenced by or against any officer in such officer's 
     official capacity as an officer of the Department of Health 
     and Human Services, shall abate by reason of the enactment of 
     this title. 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 the date established 
     pursuant to section 107(a), the court may at any time, on the 
     court's 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).
       (f) Continuation of Penalties.--This title 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 title, the 
     amendments made thereby, and regulations prescribed 
     thereunder) is vested in the Commissioner of Social Security.
       (g) Judicial Review.--Orders and actions of the 
     Commissioner of Social Security in the exercise of functions 
     vested in such Commissioner under this title (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 the date established 
     pursuant to section 107(a). Any statutory requirements 
     relating to notice, hearings, action upon the record, or 
     administrative review that apply to any function so vested in 
     such Commissioner shall continue to apply to the exercise of 
     such function by such Commissioner.
       (h) Exercise of Functions.--In the exercise of the 
     functions vested in the Commissioner of Social Security under 
     this title, the amendments made thereby, and regulations 
     prescribed thereunder, such Commissioner 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 
     Commissioner, and actions of such Commissioner shall have the 
     same force and effect as when exercised by such Secretary.
       (i) Report.--Within 120 days of the date of the enactment 
     of this title, the transition director and the Commissioner 
     of Social Security shall report to the Congress on the status 
     of the transition to an independent Social Security 
     Administration, and on any significant internal restructuring 
     or management improvements that are proposed to be 
     undertaken.

     SEC. 107. EFFECTIVE DATES.

       (a) In General.--Except as provided in subsection (b), this 
     title, and the amendments made by such title shall take 
     effect on the earlier of--
       (1) the date which is 180 days after the date of the 
     enactment of this Act, or
       (2) a date designated by the President.
       (b) Transitional Rules.--Section 106 shall take effect on 
     the date of the enactment of this title.
                    TITLE II--CONFORMING AMENDMENTS

     SEC. 201. AMENDMENTS TO TITLES II AND XVI OF THE SOCIAL 
                   SECURITY ACT.

       (a) In General.--Title II (42 U.S.C. 401 et seq.) (other 
     than section 201, section 218(d), section 231(c), section 
     226, and section 226A) and title XVI (42 U.S.C. 1382 et seq.) 
     (other than sections 1614(f)(2)(B) and 1616(e)(3)) are each 
     amended--
       (1) by striking, wherever it appears therein, ``Secretary 
     of Health and Human Services'' and inserting ``Commissioner 
     of Social Security'';
       (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'', 
     ``he'', ``her'', and ``she'', and inserting (in the case of 
     the word ``Secretary'') ``Commissioner of Social Security'', 
     (in the case of the word ``Secretary's'') ``Commissioner's'', 
     (in the case of the word ``his'') ``the Commissioner's'', (in 
     the case of the word ``him'') ``the Commissioner'', (in the 
     case of the word ``her'') ``the Commissioner'' or ``the 
     Commissioner's'', as may be appropriate, and (in the case of 
     the words ``she'' or ``he'') ``the Commissioner''; and
       (5) by striking, wherever it appears therein, ``Internal 
     Revenue Code of 1954'' and inserting ``Internal Revenue Code 
     of 1986''.
       (b) Amendments to Section 201.--(1)(A) Sections 201(a)(3), 
     201(a)(4), 201(b)(1), and 201(b)(2) (42 U.S.C. 401(a)(3), 
     401(a)(4), 401(b)(1), and 401(b)(2), respectively) are each 
     amended by striking ``Secretary of Health and Human 
     Services'' each place it appears and inserting ``Commissioner 
     of Social Security''; and
       (B) Sections 201(a)(3) and 201(b)(1) (42 U.S.C. 401(a)(3) 
     and 401(b)(1), respectively) are each amended by striking 
     ``such Secretary'' and inserting ``such Commissioner''.
       (2) Section 201(c) (42 U.S.C. 401(c)) is amended--
       (A) 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 
     Commissioner of Social Security, the Secretary of the 
     Treasury, and the Secretary of Health and Human Services, all 
     ex officio''; and
       (B) in the fifth sentence, by striking ``The Commissioner 
     of Social Security'' and inserting ``The Deputy Commissioner 
     of Social Security''.
       (3) Section 201(g)(1)(A) (42 U.S.C. 401(g)(1)(A)) is 
     amended--
       (A) in clause (i), by striking ``by him and the Secretary 
     of Health and Human Services'' and inserting ``by him, the 
     Commissioner of Social Security, and the Secretary of Health 
     and Human Services'', and by striking ``by the Department of 
     Health and Human Services and the Treasury Department'' and 
     inserting ``by the Social Security Administration, the 
     Department of Health and Human Services, and the Department 
     of the Treasury'';
       (B) in clause (ii), by striking ``method prescribed by the 
     Board of Trustees under paragraph (4)'' and inserting 
     ``applicable method prescribed under paragraph (4)'', by 
     striking ``the Secretary of Health and Human Services'' and 
     inserting ``the Commissioner of Social Security and the 
     Secretary of Health and Human Services'', and by striking 
     ``the Department of Health and Human Services'' and inserting 
     ``the Social Security Administration and the Department of 
     Health and Human Services''; and
       (C) by striking the last sentence and inserting the 
     following: ``There are hereby authorized to be made available 
     for expenditure, out of any or all of the Trust Funds, such 
     amounts as the Congress may deem appropriate to pay the costs 
     of the part of the administration of this title and title XVI 
     for which the Commissioner of Social Security is responsible, 
     the costs of title XVIII for which the Secretary of Health 
     and Human Services is responsible, and the costs of carrying 
     out the functions of the Social Security Administration, 
     specified in section 232, which relate to the administration 
     of provisions of the Internal Revenue Code of 1986 other than 
     those referred to in clause (i) of the first sentence of this 
     subparagraph.''.
       (4) Section 201(g)(1) (42 U.S.C. 401(g)(1)) is further 
     amended by striking subparagraph (B) and inserting the 
     following new subparagraphs:
       ``(B) After the close of each fiscal year--
       ``(i) the Commissioner of Social Security shall determine 
     (I) the portion of the costs, incurred during such fiscal 
     year, of administration of this title and title XVI and of 
     carrying out the functions of the Social Security 
     Administration, specified in section 232, which relate to the 
     administration of provisions of the Internal Revenue Code of 
     1986 (other than those referred to in clause (i) of the first 
     sentence of subparagraph (A)), which should have been borne 
     by the general fund in the Treasury, (II) the portion of such 
     costs which should have been borne by the Federal Old-Age and 
     Survivors Insurance Trust Fund, and (III) the portion of such 
     costs which should have been borne by the Federal Disability 
     Insurance Trust Fund, and
       ``(ii) the Secretary of Health and Human Services shall 
     determine (I) the portion of the costs, incurred during such 
     fiscal year, of administration of title XVIII which should 
     have been borne by the general fund in the Treasury, (II) the 
     portion of such costs which should have been borne by the 
     Federal Hospital Insurance Trust Fund, and (III) the portion 
     of such costs which should have been borne by the Federal 
     Supplementary Medical Insurance Trust Fund,

     except that the determination of the amounts to be borne by 
     the general fund in the Treasury with respect to expenditures 
     incurred in carrying out such functions specified in section 
     232 shall be made pursuant to the applicable method 
     prescribed under paragraph (4) of this subsection.
       ``(C) After the determinations under subparagraph (B) have 
     been made for any fiscal year, the Commissioner of Social 
     Security and the Secretary of Health and Human Services shall 
     jointly certify to the Managing Trustee the amounts, if any, 
     which should be transferred from one to any of the other of 
     such Trust Funds and the amounts, if any, which should be 
     transferred between the Trust Funds (or one of the Trust 
     Funds) and the general fund in the Treasury, in order to 
     ensure that each of the Trust Funds and the general fund in 
     the Treasury have borne their proper share of the costs, 
     incurred during such fiscal year, for (i) the part of the 
     administration of this title and title XVI for which the 
     Commissioner of Social Security is responsible, (ii) the part 
     of the administration of this title and title XVIII for which 
     the Secretary of Health and Human Services is responsible, 
     and (iii) carrying out the functions of the Social Security 
     Administration, specified in section 232, which relate to the 
     administration of provisions of the Internal Revenue Code of 
     1986 (other than those referred to in clause (i) of the first 
     sentence of subparagraph (A)). The Managing Trustee shall 
     transfer any such amounts in accordance with any 
     certification so made.''.
       (5) Section 201(g)(2) (42 U.S.C. 401(g)(2)) is amended, in 
     the second sentence, by striking ``established and maintained 
     by the Secretary of Health and Human Services'' and inserting 
     ``maintained by the Commissioner of Social Security'', and by 
     striking ``Secretary shall furnish'' and inserting 
     ``Commissioner of Social Security shall furnish''.
       (6) Section 201(g)(4) (42 U.S.C. 401(g)(4)) is amended to 
     read as follows:
       ``(4) The Commissioner of Social Security shall utilize the 
     method prescribed pursuant to this paragraph, as in effect 
     immediately before the date of the enactment of the Social 
     Security Administration Independence Act of 1994 for 
     determining the costs which should be borne by the general 
     fund in the Treasury of carrying out the functions of the 
     Social Security Administration, specified in section 232, 
     which relate to the administration of provisions of the 
     Internal Revenue Code of 1986 (other than those referred to 
     in clause (i) of the first sentence of paragraph (1)(A)). If 
     at any time or times thereafter the Boards of Trustees of 
     such Trust Funds consider such action advisable, such Boards 
     may modify the method of determining such costs.''.
       (7) Section 201(i)(1) (42 U.S.C. 401(i)(1)) is amended to 
     read as follows:
       ``(i)(1) The Managing Trustee may accept on behalf of the 
     United States money gifts and bequests made unconditionally 
     to the Federal Old-Age and Survivors Insurance Trust Fund, 
     the Federal Disability Insurance Trust Fund, the Federal 
     Hospital Insurance Trust Fund, or the Federal Supplementary 
     Medical Insurance Trust Fund or to the Social Security 
     Administration, the Department of Health and Human Services, 
     or any part or officer thereof, for the benefit of any of 
     such Funds or any activity financed through such Funds.''.
       (8) Subsections (j) and (k) of section 201 (42 U.S.C. 401) 
     are each amended by striking ``Secretary'' each place it 
     appears and inserting ``Commissioner of Social Security''.
       (9) Section 201(l)(3)(B)(iii)(II) (42 U.S.C. 
     401(l)(3)(B)(iii)(II)) is amended by striking ``Secretary'' 
     and inserting ``Commissioner of Social Security''.
       (10) Section 201(m)(3) (42 U.S.C. 401(m)(3)) is amended by 
     striking ``Secretary of Health and Human Services'' and 
     inserting ``Commissioner of Social Security''.
       (11) Section 201 (42 U.S.C. 401) is amended by striking 
     ``Internal Revenue Code of 1954'' each place it appears and 
     inserting ``Internal Revenue Code of 1986''.
       (c) Amendments to Section 218.--Section 218(d) (42 U.S.C. 
     418(d)) is amended by striking ``Secretary'' each place it 
     appears in paragraphs (3) and (7) and inserting 
     ``Commissioner of Social Security''.
       (d) Amendment to Section 231.--Section 231(c) (42 U.S.C. 
     431(c)) is amended by striking ``Secretary determines'' and 
     inserting ``Commissioner of Social Security and the Secretary 
     jointly determine''.

     SEC. 202. OTHER AMENDMENTS.

       (a) Amendments to Title VII.--(1) Title VII (42 U.S.C. 901 
     et seq.) is amended by adding at the end the following new 
     section:


                  ``DUTIES AND AUTHORITY OF SECRETARY

       ``Sec. 712. The Secretary shall perform the duties imposed 
     upon the Secretary by this Act. 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 functions of the Secretary under this 
     Act.''.
       (2) Section 706 (42 U.S.C. 907) is amended--
       (A) in subsection (a), by striking ``Advisory Council on 
     Social Security'' and all that follows through ``disability 
     insurance program and'' and inserting ``Advisory Council on 
     Hospital and Supplementary Medical Insurance for the purpose 
     of reviewing the status of the Federal Hospital Insurance 
     Trust Fund and the Federal Supplementary Medical Insurance 
     Trust Fund in relation to the long-term commitments of'';
       (B) in subsection (d), by striking paragraph (1) and by 
     redesignating paragraphs (2) and (3) as paragraphs (1) and 
     (2), respectively, and
       (C) by striking the section heading and inserting the 
     following:


 ``ADVISORY COUNCIL ON HOSPITAL AND SUPPLEMENTARY MEDICAL INSURANCE''.

       (3) Paragraph (2) of section 709(b) (42 U.S.C. 910(b)) is 
     amended by striking ``(as estimated by the Secretary)'' and 
     inserting ``(for amounts which will be paid from the Federal 
     Old-Age and Survivors Insurance Trust Fund and the Federal 
     Disability Insurance Trust Fund, as estimated by the 
     Commissioner, and for amounts which will be paid from the 
     Federal Hospital Insurance Trust and the Federal 
     Supplementary Medical Insurance Trust Fund, as estimated by 
     the Secretary)''.
       (4) Sections 709 and 710 (42 U.S.C. 910 and 911) are 
     amended by striking ``Internal Revenue Code of 1954'' each 
     place it appears and inserting ``Internal Revenue Code of 
     1986''.
       (b) Amendments to Title XI.--(1) Section 1101(a) (42 U.S.C. 
     1301(a)) is amended by adding at the end the following new 
     paragraph:
       ``(10) The term `Administration' means the Social Security 
     Administration, except where the context requires 
     otherwise.''.
       (2) Section 1106(a) (42 U.S.C. 1306(a)) is amended--
       (A) by inserting ``(1)'' after ``(a)'';
       (B) by striking ``Department of Health and Human Services'' 
     each place it appears and inserting ``applicable agency'';
       (C) by striking ``Secretary'' each place it appears and 
     inserting ``head of the applicable agency''; and
       (D) by adding at the end the following new paragraph:
       ``(2) For purposes of this subsection and subsection (b), 
     the term `applicable agency' means--
       ``(A) the Social Security Administration, with respect to 
     matter transmitted to or obtained by such Administration or 
     matter disclosed by such Administration, or
       ``(B) the Department of Health and Human Services, with 
     respect to matter transmitted to or obtained by such 
     Department or matter disclosed by such Department.''.
       (3) Section 1106(b) (42 U.S.C. 1306(b)) is amended--
       (A) by striking ``Secretary'' each place it appears and 
     inserting ``head of the applicable agency''; and
       (B) by striking ``Department of Health and Human Services'' 
     and inserting ``applicable agency''.
       (4) Section 1106(c) (42 U.S.C. 1306(c)) is amended--
       (A) by striking ``the Secretary'' the first place it 
     appears and inserting ``the Commissioner of Social Security 
     or the Secretary''; and
       (B) by striking ``the Secretary'' each subsequent place it 
     appears and inserting ``such Commissioner or Secretary''.
       (5) Section 1107(b) (42 U.S.C. 1307(b)) is amended by 
     striking ``the Secretary of Health and Human Services'' and 
     inserting ``the Commissioner of Social Security or the 
     Secretary''.
       (6) Section 1110 (42 U.S.C. 1310) is amended--
       (A) in subsection (a)(2), by inserting ``(or the 
     Commissioner, with respect to any jointly financed 
     cooperative agreement or grant concerning titles II or XVI)'' 
     after ``Secretary'';
       (B) in subsection (b)--
       (i) by striking ``Secretary'' each place it appears and 
     inserting ``Commissioner'', and
       (ii) by striking ``the Secretary's'' each place it appears 
     and inserting ``the Commissioner's''; and
       (C) by striking ``he'', ``his'', ``him'', and ``himself'' 
     each place they appear (except in subsection (b)(2)(A)) and 
     inserting ``the Commissioner'', ``the Commissioner's'', ``the 
     Commissioner'', and ``himself or herself'', respectively.
       (7) Subsections (b) and (c) of section 1127 (42 U.S.C. 
     1320a-6) are each amended by striking ``Secretary'' and 
     inserting ``Commissioner of Social Security''.
       (8) Section 1128(f) (42 U.S.C. 1320a-7(f)) is amended by 
     inserting after ``section 205(g)'' the following: ``, except 
     that, in so applying such sections and section 205(l), any 
     reference therein to the Commissioner of Social Security or 
     the Social Security Administration shall be considered a 
     reference to the Secretary or the Department of Health and 
     Human Services, respectively''.
       (9) Section 1131 (42 U.S.C. 1320b-1) is amended--
       (A) by striking ``Secretary'' each place it appears and 
     inserting ``Commissioner of Social Security'';
       (B) in subsection (a)(1)(A), by adding ``or'' at the end;
       (C) in subsection (a)(1)(B), by striking ``or'' at the end;
       (D) by striking subsection (a)(1)(C);
       (E) by redesignating subsection (a)(2) as subsection 
     (a)(3);
       (F) by inserting after subsection (a)(1) the following new 
     paragraph:
       ``(2) the Secretary makes a finding of fact and a decision 
     as to the entitlement under section 226 of any individual to 
     hospital insurance benefits under part A of title XVIII, 
     or''; and
       (G) by striking ``he'' in the matter in subsection (a) 
     following paragraph (3) (as so redesignated) and inserting 
     ``the Commissioner of Social Security''.
       (10) Section 1155 (42 U.S.C. 1320c-4) is amended by 
     striking ``(to the same extent as is provided in section 
     205(b))'' and all that follows and inserting ``(to the same 
     extent as beneficiaries under title II are entitled to a 
     hearing by the Commissioner of Social Security under section 
     205(b)). For purposes of the preceding sentence, subsection 
     (l) of section 205 shall apply, except that any reference in 
     such subsection to the Commissioner of Social Security or the 
     Social Security Administration shall be deemed a reference to 
     the Secretary or the Department of Health and Human Services, 
     respectively. Where the amount in controversy is $2,000 or 
     more, such beneficiary shall be entitled to judicial review 
     of any final decision relating to a reconsideration described 
     in this subsection.''.
       (11) Sections 1101, 1106, 1107, and 1137 (42 U.S.C. 1301, 
     1306, 1307, and 1320b-7, respectively) are amended by 
     striking ``Internal Revenue Code of 1954'' each place it 
     appears and inserting ``Internal Revenue Code of 1986''.
       (c) Amendments to Title XVIII.--(1) Subsections (a) and (f) 
     of section 1817 (42 U.S.C. 1395i) are amended by striking 
     ``Secretary of Health and Human Services'' each place it 
     appears and inserting ``Commissioner of Social Security''.
       (2) Section 1840(a) (42 U.S.C. 1395s(a)) is amended--
       (A) in paragraph (1), by striking ``Secretary'' and 
     inserting ``Commissioner of Social Security'', and by adding 
     at the end the following new sentence: ``Such regulations 
     shall be prescribed after consultation with the Secretary.''; 
     and
       (B) in paragraph (2), by striking ``Secretary of Health and 
     Human Services'' and inserting ``Commissioner of Social 
     Security''.
       (3) Section 1872 (42 U.S.C. 1395ii) is amended by inserting 
     after ``title II'' the following: ``, except that, in 
     applying such provisions with respect to this title, any 
     reference therein to the Commissioner of Social Security or 
     the Social Security Administration shall be considered a 
     reference to the Secretary or the Department of Health and 
     Human Services, respectively''.
       (4) Section 1869(b)(1) (42 U.S.C. 1395ff(b)(1)) and the 
     last sentence of section 1876(c)(5)(B) (42 U.S.C. 
     1395mm(c)(5)(B)) are amended by inserting after ``section 
     205(g)'' the following: ``, except that, in so applying such 
     sections and section 205(l), any reference therein to the 
     Commissioner of Social Security or the Social Security 
     Administration shall be considered a reference to the 
     Secretary or the Department of Health and Human Services, 
     respectively''.
       (5) Sections 1817, 1862, and 1886 (42 U.S.C. 1395i, 1395y, 
     and 1395ww, respectively) are amended by striking ``Internal 
     Revenue Code of 1954'' each place it appears and inserting 
     ``Internal Revenue Code of 1986''.
       (d) Amendments to Title XIX.--(1) Section 1905(q)(2) (42 
     U.S.C. 1396d(q)(2)) is amended by striking ``Secretary'' and 
     inserting ``Commissioner of Social Security''.
       (2) Section 1910(b)(2) (42 U.S.C. 1396i(b)(2)) is amended, 
     in the first sentence, by inserting after ``section 205(g)'' 
     the following: ``, except that, in so applying such sections 
     and section 205(l), any reference therein to the Commissioner 
     of Social Security or the Social Security Administration 
     shall be considered a reference to the Secretary or the 
     Department of Health and Human Services, respectively''.
       (e) Amendment to Title XX.--Section 2002(a)(2)(B) (42 
     U.S.C. 1397a(a)(2)(B)) is amended by striking ``Internal 
     Revenue Code of 1954'' and inserting ``Internal Revenue Code 
     of 1986''.
       (f) Amendments to Title 5, United States Code.--Title 5, 
     United States Code, is amended--
       (1) by adding at the end of section 5311 the following new 
     item:
       ``Commissioner, Social Security Administration.'';
       (2) by adding at the end of section 5313 the following new 
     item:
       ``Deputy Commissioner, Social Security Administration.''; 
     and
       (3) by striking ``Secretary of Health Education, and 
     Welfare'' each place it appears in section 8141 and inserting 
     ``Commissioner of Social Security''.
       (g) Amendments to Food Stamp Act of 1977.--(1) Sections 
     6(c)(3) and 8(e)(6) of the Food Stamp Act of 1977 (7 U.S.C. 
     2015(c)(3) and 2017(e)(6)) are each amended by inserting 
     ``the Commissioner of Social Security and'' before ``the 
     Secretary of Health and Human Services''.
       (2) Sections 6(g), 11(j), and 16(e) of such Act (7 U.S.C. 
     2015(g), 2020(j), and 2025(e)) are each amended by striking 
     ``Secretary of Health and Human Services'' each place it 
     appears and inserting ``Commissioner of Social Security''.
       (3) Section 11(i) of such Act (7 U.S.C. 2020(i)) is amended 
     by adding ``, the Commissioner of Social Security'' after 
     ``the Secretary''.
       (h) Amendment to Title 14, United States Code.--Section 
     707(e)(3) of title 14, United States Code, is amended by 
     striking ``Secretary of Health and Human Services'' each 
     place it appears and inserting ``Commissioner of Social 
     Security''.
       (i) Amendments to Internal Revenue Code of 1986.--(1) 
     Subsections (c)(1), (c)(2)(E), (g)(1), (g)(2)(A), and 
     (g)(2)(B) of section 1402 of the Internal Revenue Code of 
     1986 (26 U.S.C. 1402) are amended by striking ``Secretary of 
     Health and Human Services'' each place it appears and 
     inserting ``Commissioner of Social Security''.
       (2) Section 3121(b)(10)(B) of such Code (26 U.S.C. 
     3121(b)(10)(B)) is amended by striking ``Secretary of Health 
     and Human Services'' each place it appears and inserting 
     ``Commissioner of Social Security''.
       (3) Section 3127 of such Code (26 U.S.C. 3127) is amended 
     by striking ``Secretary of Health and Human Services'' each 
     place it appears and inserting ``Commissioner of Social 
     Security''.
       (4) Section 6050F(c)(1)(A) of such Code (26 U.S.C. 
     6050F(c)(1)(A)) is amended by striking ``Secretary of Health 
     and Human Services'' and inserting ``Commissioner of Social 
     Security''.
       (5) Subsections (d) and (f) of section 6057 of such Code 
     (26 U.S.C. 6057) are amended by striking ``Secretary of 
     Health and Human Services'' each place it appears and 
     inserting ``Commissioner of Social Security''.
       (6) Section 6103(l)(5) of such Code (26 U.S.C. 6103(l)(5)) 
     is amended--
       (A) by striking ``Department of Health and Human Services'' 
     and inserting ``Social Security Administration''; and
       (B) by striking ``Secretary of Health and Human Services'' 
     and inserting ``Commissioner of Social Security''.
       (7) Subsections (d)(3)(C) and (e) of section 6402 of such 
     Code (26 U.S.C. 6402) are amended by striking ``Secretary of 
     Health and Human Services'' each place it appears and 
     inserting ``Commissioner of Social Security''.
       (8) Section 6511(d)(5) of such Code (26 U.S.C. 6511(d)(5)) 
     is amended by striking ``Secretary of Health and Human 
     Services'' and inserting ``Commissioner of Social Security''.
       (j) Amendments to Title 31, United States Code.--Section 
     3720A(f) of title 31, United States Code, is amended by 
     striking ``Secretary of Health and Human Services'' each 
     place it appears in and inserting ``Commissioner of Social 
     Security''.
       (k) Amendments to Title 38, United States Code.--Section 
     5105 of title 38, United States Code, is amended--
       (1) by striking ``Secretary of Health and Human Services'' 
     each place it appears and inserting ``Commissioner of Social 
     Security''; and
       (2) by striking the second sentence of subsection (b) and 
     inserting the following new sentence: ``A copy of each such 
     application filed with either the Secretary or the 
     Commissioner, together with any additional information and 
     supporting documents (or certifications thereof) which may 
     have been received by the Secretary or the Commissioner with 
     such application, and which may be needed by the other 
     official in connection therewith, shall be transmitted by the 
     Secretary or the Commissioner receiving the application to 
     the other official.''.
       (l) Amendments to Inspector General Act of 1978.--The 
     Inspector General Act of 1978 (5 U.S.C. App.) is amended--
       (1) in section 9(a)(1), by striking ``and'' at the end of 
     subparagraph (U), and by adding at the end the following new 
     subparagraph:
       ``(V) of the Social Security Administration, the functions 
     of the Inspector General of the Department of Health and 
     Human Services relating to the administration of the old-age, 
     survivors, and disability insurance program under title II of 
     the Social Security Act and of the supplemental security 
     income program under title XVI of such Act; and'';
       (2) in section 11(1), by striking ``or'' after 
     ``Commission'' and inserting a semicolon, and by inserting 
     after ``Board;'' the following: ``or the Commissioner of 
     Social Security;''; and
       (3) in section 11(2), by striking ``or'' after 
     ``Information Agency,'', and by inserting after ``Veterans' 
     Administration'' the following: ``, or the Social Security 
     Administration;''.

     SEC. 203. RULES OF CONSTRUCTION.

       (a) References to the Department of Health and Human 
     Services.--Whenever any reference is made in any provision of 
     law (other than this Act or a provision of law amended by 
     this Act), regulation, rule, record, or 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, or document to the 
     Secretary of Health and Human Services with respect to such 
     Secretary'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 Commissioner of Social 
     Security.
       (c) References to Other Officers and Employees.--Whenever 
     any reference is made in any provision of law (other than 
     this Act or a provision of law amended by this Act), 
     regulation, rule, record, or document to any other officer or 
     employee of the Department of Health and Human Services with 
     respect to such officer or employee's functions under 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 appropriate 
     officer or employee of the Social Security Administration.

     SEC. 204. EFFECTIVE DATES.

       (a) In General.--Except as provided in subsection (b), the 
     provisions of this title shall take effect on the date 
     established pursuant to section 107(a).
       (b) Exceptions.--Subsections (f)(1), (f)(2), and (l) of 
     section 202 shall take effect on the date of the enactment of 
     this title.
        TITLE III--SOCIAL SECURITY DISABILITY AND REHABILITATION

     SEC. 301. SHORT TITLE.

       This title may be cited as the ``Social Security Disability 
     and Rehabilitation Act of 1994''.

     SEC. 302. REFORM OF MONTHLY INSURANCE BENEFITS BASED ON 
                   DISABILITY INVOLVING SUBSTANCE ABUSE.

       (a) Social Security Disability Insurance.--
       (1) In general.--Section 223 of the Social Security Act (42 
     U.S.C. 423) is amended by adding at the end the following new 
     subsection:

    ``Limitation on Payment of Benefits by Reason of Substance Abuse

       ``(j)(1)(A) Notwithstanding any other provision of this 
     title, no individual whose disability is based in whole or in 
     part on a medical determination that the individual is a drug 
     addict or alcoholic shall be entitled to benefits under this 
     title based on such disability with respect to any month, 
     unless such individual--
       ``(i) is undergoing, or on a waiting list for, any medical 
     or psychological treatment that may be appropriate for such 
     individual's condition as a drug addict or alcoholic (as the 
     case may be) and for the stage of such individual's 
     rehabilitation at an institution or facility approved for 
     purposes of this paragraph by the Secretary (so long as 
     access to such treatment is reasonably available, as 
     determined by the Secretary), and
       ``(ii) demonstrates in such manner as the Secretary 
     requires, including at a continuing disability review not 
     later than one year after such determination, that such 
     individual is complying with the terms, conditions, and 
     requirements of such treatment and with the requirements 
     imposed by the Secretary under subparagraph (B).
       ``(B) 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 such benefits are 
     required to be undergoing treatment and complying with the 
     terms, conditions, and requirements thereof as described in 
     subparagraph (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 may retain jurisdiction 
     in the case of a hearing before the Secretary under this 
     title to the extent the Secretary determines necessary to 
     carry out the preceding sentence. The Secretary shall 
     annually submit to the Congress a full and complete report on 
     the Secretary's activities under this paragraph.
       ``(C) The representative payee and the referral and 
     monitoring agency for any individual described in 
     subparagraph (A) shall report to the Secretary any 
     noncompliance with the terms, conditions, and requirements of 
     the treatment described in subparagraph (A) and with the 
     requirements imposed by the Secretary under subparagraph (B).
       ``(D)(i) If the Secretary finds that an individual is not 
     complying with the terms, conditions, and requirements of the 
     treatment described in subparagraph (A), or with the 
     requirements imposed by the Secretary under subparagraph (B), 
     or both, the Secretary, in lieu of termination, may suspend 
     such individual's benefits under this title until compliance 
     has been reestablished, including compliance with any 
     additional requirements determined to be necessary by the 
     Secretary.
       ``(ii) Any period of suspension under clause (i) shall be 
     taken into account in determining any 24-month period 
     described in subparagraph (E) and shall not be taken into 
     account in determining the 36-month period described in such 
     subparagraph.
       ``(E)(i) Except as provided in clause (ii), no individual 
     described in subparagraph (A) shall be entitled to benefits 
     under this title for any month following the 24-month period 
     beginning with the determination of the disability described 
     in such subparagraph.
       ``(ii) If at the end of the 24-month period described in 
     clause (i), the individual furnishes evidence in accordance 
     with subsection (d)(5) that the individual continues to be 
     under a disability based in whole or in part on a medical 
     determination that the individual is a drug addict or 
     alcoholic, such individual shall continue to be entitled to 
     benefits under this title based on such disability.
       ``(iii) Subject to clause (iv), if such an individual 
     continues to be entitled to such benefits for an additional 
     24-month period following a determination under clause (ii), 
     clauses (i) and (ii) shall apply with regard to any further 
     entitlement to such benefits following the end of such 
     additional period.
       ``(iv) In no event shall such an individual be entitled to 
     benefits under this title for more than a total of 36 months, 
     unless upon the termination of the 36th month such individual 
     furnishes evidence in accordance with subsection (d)(5) that 
     the individual is under a disability which is not related in 
     part to a medical determination that the individual is a drug 
     addict or alcoholic.
       ``(2)(A) Any benefits under this title payable to any 
     individual referred to in paragraph (1), including any 
     benefits payable in a lump sum amount, shall be payable only 
     pursuant to a certification of such payment to a qualified 
     organization acting as a representative payee of such 
     individual pursuant to section 205(j).
       ``(B) For purposes of subparagraph (A) and section 
     205(j)(4), the term `qualified organization'--
       ``(i) shall have the meaning given such term by section 
     205(j)(4)(B), and
       ``(ii) shall mean an agency or instrumentality of a State 
     or a political subdivision of a State.
       ``(3) 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 a disabled individual but for the provisions 
     of paragraph (1), shall be payable as though such disabled 
     individual were receiving such benefits which are not payable 
     under this subsection.''
       (2) Conforming amendments.--
       (A) Section 205(j)(1) of such Act (42 U.S.C. 405(j)(1)) is 
     amended by inserting '', or in the case of any individual 
     referred to in section 223(j)(1)(A)'' after ``thereby''.
       (B) Section 205(j)(2)(D)(ii)(II) of such Act (42 U.S.C. 
     405(j)(2)(D)(ii)(II)) is amended by striking ``legally 
     incompetent or under the age of 15'' and inserting ``legally 
     incompetent, under the age of 15, or a drug addict or 
     alcoholic referred to in section 223(j)(1)(A)''.
       (b) Supplemental Security Income.--Paragraph (3) of section 
     1611(e) of the Social Security Act (42 U.S.C. 1382(e)) is 
     amended to read as follows:
       ``(3)(A)(i) No person who is an aged, blind, or disabled 
     individual solely by reason of disability (as determined 
     under section 1614(a)(3)) shall be an eligible individual or 
     eligible spouse for purposes of this title with respect to 
     any month if such individual's disability is based in whole 
     or in part on a medical determination that the individual is 
     a drug addict or alcoholic, unless such individual--
       ``(I) is undergoing, or on a waiting list for, any medical 
     or psychological treatment that may be appropriate for such 
     individual's condition as a drug addict or alcoholic (as the 
     case may be) and for the stage of such individual's 
     rehabilitation at an institution or facility approved for 
     purposes of this paragraph by the Secretary (so long as 
     access to such treatment is reasonably available, as 
     determined by the Secretary), and
       ``(II) demonstrates in such manner as the Secretary 
     requires, including at a continuing disability review not 
     later than one year after such determination, that such 
     individual is complying with the terms, conditions, and 
     requirements of such treatment and with the requirements 
     imposed by the Secretary under clause (ii).
       ``(ii) 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 such benefits are 
     required to be undergoing treatment and complying with the 
     terms, conditions, and requirements thereof as described in 
     clause (i), 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 may retain jurisdiction 
     in the case of a hearing before the Secretary under this 
     title to the extent the Secretary determines necessary to 
     carry out the preceding sentence. The Secretary shall 
     annually submit to the Congress a full and complete report on 
     the Secretary's activities under this subparagraph.
       ``(iii) The representative payee and the referral and 
     monitoring agency for any individual described in clause (i) 
     shall report to the Secretary any noncompliance with the 
     terms, conditions, and requirements of the treatment 
     described in clause (i) and with the requirements imposed by 
     the Secretary under clause (ii).
       ``(iv)(I) If the Secretary finds that an individual is not 
     complying with the terms, conditions, and requirements of the 
     treatment described in clause (i), or with the requirements 
     imposed by the Secretary under clause (ii), or both, the 
     Secretary, in lieu of termination, may suspend such 
     individual's benefits under this title until compliance has 
     been reestablished, including compliance with any additional 
     requirements determined to be necessary by the Secretary.
       ``(II) Any period of suspension under subclause (I) shall 
     be taken into account in determining any 24-month period 
     described in clause (v) and shall not be taken into account 
     in determining the 36-month period described in such clause.
       ``(v)(I) Except as provided in subclause (II), no 
     individual described in clause (i) shall be entitled to 
     benefits under this title for any month following the 24-
     month period beginning with the determination of the 
     disability described in such clause.
       ``(II) If at the end of the 24-month period described in 
     subclause (I), the individual furnishes evidence in 
     accordance with section 223(d)(5) that the individual 
     continues to be under a disability based in whole on a 
     medical determination that the individual is a drug addict or 
     alcoholic, such individual shall be entitled to benefits 
     under this title based on such disability for no more than an 
     additional 36 months.
       ``(III) Subject to subclause (IV), if such an individual 
     continues to be entitled to such benefits for an additional 
     24-month period following a determination under subclause 
     (II), subclauses (I) and (II) shall apply with regard to any 
     further entitlement to such benefits following the end of 
     such additional period.
       ``(IV) In no event shall such an individual be entitled to 
     benefits under this title for more than a total of 36 months, 
     unless upon the termination of the 36th month such individual 
     furnishes evidence in accordance with section 223(d)(5) that 
     the individual is under a disability which is not related in 
     part to a medical determination that the individual is a drug 
     addict or alcoholic.
       ``(B)(i) Any benefits under this title payable to any 
     individual referred to in subparagraph (A), including any 
     benefits payable in a lump sum amount, shall be payable only 
     pursuant to a certification of such payment to a qualified 
     organization acting as a representative payee of such 
     individual pursuant to section 1631(a)(2)(A)(ii).
       ``(ii) For purposes of clause (i) and section 
     1631(a)(2)(D), the term `qualified organization'--
       ``(I) shall have the meaning given such term by section 
     1631(a)(2)(D)(ii), and
       ``(II) shall mean an agency or instrumentality of a State 
     or a political subdivision of a State.''
       (c) Effective Dates; Authorizations.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to benefits 
     payable for determinations of disability made 90 or more days 
     after the date of the enactment of this Act.
       (2) Current determinations.--
       (A) In general.--With respect to any individual described 
     in subparagraph (B), the Secretary of Health and Human 
     Services shall provide during the 3-year period beginning 
     after the date of the enactment of this Act for the 
     application of the amendments made by this section to such 
     individual with the time periods described in such amendments 
     to begin upon such application.
       (B) Individual described.--An individual is described in 
     this subparagraph if such individual is entitled to benefits 
     under title II or XVI of the Social Security Act based on a 
     disability determined before the date described in paragraph 
     (1) to be based in whole or in part on a medical 
     determination that the individual is a drug addict or 
     alcoholic.
       (3) Authorization of appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     the purposes of the provisions of, and the amendments made 
     by, this section.

     SEC. 303. PRIORITY OF TREATMENT.

       The Secretary of Health and Human Services, through the 
     Administrator of the Substance Abuse and Mental Health 
     Services Administration, shall assure that every individual 
     receiving disability benefits under title II or XVI of the 
     Social Security Act based in whole or in part on a medical 
     determination that the individual is a drug addict or 
     alcoholic be given high priority for treatment through 
     entities supported by the various States through any 
     substance abuse block grant authorized under law.

     SEC. 304. ESTABLISHMENT OF REFERRAL MONITORING AGENCIES 
                   REQUIRED IN ALL STATES.

       The Secretary of Health and Human Services shall, within 1 
     year of the date of the enactment of this Act, provide for 
     the establishment of referral and monitoring agencies for 
     each State for the purpose of carrying out the treatment 
     requirements under sections 223(j)(1) and 1611(e)(3)(A) of 
     the Social Security Act (42 U.S.C. 423(j)(1) and 
     1382(e)(3)(A)).

     SEC. 305. PROCEEDS FROM CERTAIN CRIMINAL ACTIVITIES 
                   CONSTITUTE SUBSTANTIAL GAINFUL EMPLOYMENT.

       (a) Social Security Disability Insurance.--Section 
     223(d)(4) of the Social Security Act (42 U.S.C. 423(d)(4)) is 
     amended by inserting the following after the first sentence: 
     ``If an individual engages in a criminal activity to support 
     substance abuse, any proceeds derived from such activity 
     shall demonstrate such individual's ability to engage in 
     substantial gainful activity.''.
       (b) Supplemental Security Income.--Section 1614(a)(3)(D) of 
     the Social Security Act (42 U.S.C. 1382(a)(3)(D)) is amended 
     by inserting the following after the first sentence: ``If an 
     individual engages in a criminal activity to support 
     substance abuse, any proceeds derived from such activity 
     shall demonstrate such individual's ability to engage in 
     substantial gainful activity.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to disability determinations conducted on or 
     after the date of the enactment of this Act.

     SEC. 306. CONSISTENT PENALTY PROVISIONS FOR SSDI AND SSI 
                   PROGRAMS.

       (a) Felony Penalties for Fraud.--
       (1) In general.--Subsection (a) of section 1631 of the 
     Social Security Act (42 U.S.C. 1383a) is amended by striking 
     ``shall be guilty of a misdemeanor and upon conviction 
     thereof shall be fined not more than $1,000 or imprisoned for 
     not more than one year, or both'' and inserting ``shall be 
     guilty of a felony and upon conviction thereof shall be fined 
     under title 18, United States Code, or imprisoned for not 
     more than five years, or both''.
       (2) Representative payees.--
       (A) Ssdi.--Subsections (b) and (c) of section 208 of such 
     Act (42 U.S.C. 408) are amended to read as follows:
       ``(b)(1) Any person or other entity who is convicted of a 
     violation of any of the provisions of this section, if such 
     violation is committed by such person or entity in his role 
     as, or in applying to become, a certified payee under section 
     205(j) on behalf of another individual (other than such 
     person's spouse or an entity described in section 
     223(j)(2)(B)(ii)), shall be guilty of a felony and upon 
     conviction thereof shall be fined under title 18, United 
     States Code, or imprisoned for not more than five years, or 
     both.
       ``(2) In any case in which the court determines that a 
     violation described in paragraph (1) includes a willful 
     misuse of funds by such person or entity, the court may also 
     require that full or partial restitution of such funds be 
     made to the individual for whom such person or entity was the 
     certified payee.
       ``(3) Any person or entity convicted of a felony under this 
     section or under section 1632(b) may not be certified as a 
     payee under section 205(j).
       ``(c) For the purpose of subsection (a)(7), the terms 
     `social security number' and `social security account number' 
     mean such numbers as are assigned by the Secretary under 
     section 205(c)(2) whether or not, in actual use, such numbers 
     are called social security numbers.''
       (B) Ssi.--Subsection (b)(1) of section 1632 of such Act (42 
     U.S.C. 1383a) is amended by striking ``(other than such 
     person's spouse)'' and all that follows through the period 
     and inserting ``(other than such person's spouse or an entity 
     described in section 1611(e)(3)(B)(ii)(II)), shall be guilty 
     of a felony and upon conviction thereof shall be fined under 
     title 18, United States Code, or imprisoned for not more than 
     five years, or both.''
       (b) Civil Administrative Penalties.--
       (1) Ssdi.--Section 208 of the Social Security Act (42 
     U.S.C. 408) is amended by adding at the end the following new 
     subsections:
       ``(e) For administrative penalties for false claims and 
     statements with respect to which an individual or other 
     entity knows or has reason to know such falsity, see chapter 
     38 of title 31, United States Code.
       ``(f) In the case of the second or subsequent imposition of 
     an administrative or criminal penalty on any person or other 
     entity under this section, the Secretary may exclude such 
     person or entity from participation in any program under this 
     title and titles V, XVI, XVIII, and XX, and may direct that 
     such person or entity be excluded from any State health care 
     program (as defined in section 1128(h)) and any other Federal 
     program as provided by law.''
       (2) Ssi.--
       (A) In general.--Section 1632 of such Act (42 U.S.C. 1383a) 
     is amended by adding at the end the following new 
     subsections:
       ``(c) For administrative penalties for false claims and 
     statements with respect to which an individual or other 
     entity knows or has reason to know such falsity, see chapter 
     38 of title 31, United States Code.
       ``(d) In the case of the second or subsequent imposition of 
     an administrative or criminal penalty on any person or other 
     entity under this section, the Secretary may exclude such 
     person or entity from participation in any program under this 
     title and titles II, V, XVIII, and XX, and may direct that 
     such person or entity be excluded from any State health care 
     program (as defined in section 1128(h)) and any other Federal 
     program as provided by law.''
       (B) Conforming amendment.--The heading for section 1632 of 
     such Act (42 U.S.C. 1383a) is amended by striking ``for 
     fraud''.
       (c) Effective Date.--The amendments made by this section 
     shall be effective on or after the date of the enactment of 
     this Act.
  The PRESIDING OFFICER. The chair appoints Mr. Moynihan, Mr. Baucus, 
Mr. Breaux, Mr. Packwood, and Mr. Dole conferees on the part of the 
Senate.

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