[Congressional Record Volume 140, Number 106 (Thursday, August 4, 1994)]
[House]
[Page H]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: August 4, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                     CONFERENCE REPORT ON H.R. 4277

  Mr. GIBBONS submitted the following conference report and statement 
on 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:

                  Conference Report (H. Rept. 103-670)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to 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, having met, 
     after full and free conference, have agreed to recommend and 
     do recommend to their respective Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate and agree to the same with an 
     amendment as follows:
       In lieu of the matter proposed to be inserted by the Senate 
     amendment, insert the following:

     SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Social 
     Security Independence and Program Improvements Act of 1994''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title and table of contents.

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

Sec. 101. Establishment of Social Security Administration as an 
              independent agency.
Sec. 102. Commissioner and Deputy Commissioner; other officers.
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. Transition rules.
Sec. 107. Conforming amendments to titles II and XVI of the Social 
              Security Act.
Sec. 108. Additional conforming amendments.
Sec. 109. Rules of construction.
Sec. 110. Effective dates.

        TITLE II--PROGRAM IMPROVEMENTS RELATING TO OASDI AND SSI

Sec. 201. Restrictions on payment of benefits based on disability to 
              substance abusers.
Sec. 202. Commission on childhood disability.
Sec. 203. Regulations regarding completion of plans for achieving self-
              support.
Sec. 204. SSI eligibility for students temporarily abroad.
Sec. 205. Disregard of cost-of-living increases for continued 
              eligibility for work incentives.
Sec. 206. Expansion of the authority of the Social Security 
              Administration to prevent, detect, and terminate 
              fraudulent claims for OASDI and SSI benefits.
Sec. 207. Disability review required for SSI recipients who are 18 
              years of age.
Sec. 208. Continuing disability reviews.
Sec. 209. Exemption from adjustment in pass-along requirements.

             TITLE III--MISCELLANEOUS PROGRAM IMPROVEMENTS

Sec. 301. Issuance of physical documents in the form of bonds, notes, 
              or certificates to the social security trust funds.
Sec. 302. GAO study regarding telephone access to local offices of the 
              Social Security Administration.
Sec. 303. Expansion of State option to exclude service of election 
              officials or election workers from coverage.
Sec. 304. Use of social security numbers by States and local 
              governments and Federal district courts for jury 
              selection purposes.
Sec. 305. Authorization for all States to extend coverage to State and 
              local police officers and firefighters under existing 
              coverage agreements.
Sec. 306. Limited exemption for Canadian ministers from certain self-
              employment tax liability.
Sec. 307. Exclusion of totalization benefits from the application of 
              the windfall elimination provision.
Sec. 308. Exclusion of military reservists from application of the 
              government pension offset and windfall elimination 
              provisions.
Sec. 309. Repeal of the facility-of-payment provision.
Sec. 310. Maximum family benefits in guarantee cases.
Sec. 311. Authorization for disclosure of social security information 
              for purposes of public or private epidemiological and 
              similar research.
Sec. 312. Misuse of symbols, emblems, or names in reference to Social 
              Security Administration, Department of Health and Human 
              Services, or Department of the Treasury.
Sec. 313. Increased penalties for unauthorized disclosure of social 
              security information.
Sec. 314. Increase in authorized period for extension of time to file 
              annual earnings report.
Sec. 315. Extension of disability insurance program demonstration 
              project authority.
Sec. 316. Cross-matching of social security account number information 
              and employer identification number information maintained 
              by the Department of Agriculture.
Sec. 317. Certain transfers to railroad retirement account made 
              permanent.
Sec. 318. Authorization for use of social security account numbers by 
              Department of Labor in administration of Federal workers' 
              compensation laws.
Sec. 319. Coverage under FICA of Federal employees transferred 
              temporarily to international organizations.
Sec. 320. 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. 321. Technical and clerical amendments.
  TITLE I--ESTABLISHMENT OF THE SOCIAL SECURITY ADMINISTRATION AS AN 
                           INDEPENDENT AGENCY

     SEC. 101. ESTABLISHMENT OF SOCIAL SECURITY ADMINISTRATION AS 
                   AN INDEPENDENT AGENCY.

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


                    ``SOCIAL SECURITY ADMINISTRATION

       ``Sec. 701. (a) There is hereby established, as an 
     independent agency in the executive branch of the Government, 
     a Social Security Administration (in this title referred to 
     as the `Administration').
       ``(b) 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; OTHER 
                   OFFICERS.

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


          ``COMMISSIONER; DEPUTY COMMISSIONER; OTHER OFFICERS

                   ``Commissioner of Social Security

       ``Sec. 702. (a)(1) There shall be in the Administration a 
     Commissioner of Social Security (in this title referred to as 
     the `Commissioner') who shall be appointed by the President, 
     by and 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 6 
     years, except that the initial term of office for 
     Commissioner shall terminate January 19, 2001. In any case in 
     which a successor does not take office at the end of a 
     Commissioner's term of office, such Commissioner may continue 
     in office until the entry upon office of such a successor. A 
     Commissioner appointed to a term of office after the 
     commencement of such term may serve under such appointment 
     only for the remainder of such term. An individual serving in 
     the office of Commissioner may be removed from office only 
     pursuant to a finding by the President of neglect of duty or 
     malfeasance in office.
       ``(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 (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 is available to the public.

                ``Deputy Commissioner of Social Security

       ``(b)(1) There shall be in the Administration a Deputy 
     Commissioner of Social Security (in this title referred to as 
     the `Deputy Commissioner') who shall be appointed by the 
     President, by and with the advice and consent of the Senate.
       ``(2) The Deputy Commissioner shall be appointed for a term 
     of 6 years, except that the initial term of office for the 
     Deputy Commissioner shall terminate January 19, 2001. In any 
     case in which a successor does not take office at the end of 
     a Deputy Commissioner's term of office, such Deputy 
     Commissioner may continue in office until the entry upon 
     office of such a successor. A Deputy Commissioner appointed 
     to a term of office after the commencement of such term may 
     serve under such appointment only for the remainder of such 
     term.
       ``(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.

                       ``Chief Financial Officer

       ``(c) There shall be in the Administration a Chief 
     Financial Officer appointed by the Commissioner in accordance 
     with section 901(a)(2) of title 31, United States Code.

                          ``Inspector General

       ``(d) There shall be in the Administration an Inspector 
     General appointed by the President, by and with the advice 
     and consent of the Senate, in accordance with section 3(a) of 
     the Inspector General Act of 1978.''.

     SEC. 103. SOCIAL SECURITY ADVISORY BOARD.

       Section 703 of the Social Security Act (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 (in this section referred to as the 
     `Board').

                        ``Functions of the Board

       ``(b) On and after the date the Commissioner takes office, 
     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 with respect to the quality of 
     service that the Administration provides to the public;
       ``(5) making recommendations with respect to policies and 
     regulations regarding the old-age, survivors, and disability 
     insurance program and the supplemental security income 
     program;
       ``(6) increasing public understanding of the social 
     security system;
       ``(7) making recommendations with respect to a long-range 
     research and program evaluation plan for the Administration;
       ``(8) reviewing and assessing any major studies of social 
     security as may come to the attention of the Board; and
       ``(9) making recommendations with respect to such other 
     matters as the Board determines to be appropriate.

                ``Structure and Membership of the Board

       ``(c)(1) The Board shall be composed of 7 members who shall 
     be appointed as follows:
       ``(A) 3 members shall be appointed by the President, by and 
     with the advice and consent of the Senate. Not more than 2 of 
     such members shall be from the same political party.
       ``(B) 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.
       ``(C) 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.
       ``(2) 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.

                         ``Terms of Appointment

       ``(d) Each member of the Board shall serve for a term of 6 
     years, except that--
       ``(1) a 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; and
       ``(2) the terms of service of the members initially 
     appointed under this section shall begin on October 1, 1994, 
     and 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) 3 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) 4 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.

                        ``Expenses and Per Diem

       ``(f) Members of the Board shall serve without 
     compensation, except that, 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.

                               ``Meetings

       ``(g)(1) The Board shall meet at the call of the Chairman 
     (in consultation with the other members of the Board) not 
     less than 4 times each year to consider a specific agenda of 
     issues, as determined by the Chairman in consultation with 
     the other members of the Board.
       ``(2) Four members of the Board (not more than 3 of whom 
     may be of the same political party) shall constitute a quorum 
     for purposes of conducting business.

                    ``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) The Board shall, without regard to the provisions of 
     title 5, United States Code, relating to the competitive 
     service, appoint a Staff Director who shall be paid at a rate 
     equivalent to a rate established for the Senior Executive 
     Service under section 5382 of title 5, United States Code. 
     The Board shall appoint such additional personnel as the 
     Board determines to be necessary to provide adequate clerical 
     support for the Board, and may compensate such additional 
     personnel without regard to the provisions of title 5, United 
     States Code, relating to the competitive service.

                   ``Authorization of Appropriations

       ``(j) There are authorized to be appropriated, out of the 
     Federal Disability Insurance Trust Fund, the Federal Old-Age 
     and Survivors Insurance Trust Fund, and the general fund of 
     the Treasury, such sums as are necessary to carry out the 
     purposes of this section.''.

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

       (a) In General.--Section 704 of the Social Security Act (42 
     U.S.C. 904) 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, and attorneys and experts may 
     be appointed without regard to the civil service laws. Except 
     as otherwise provided in the preceding sentence or 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 
     Independence and Program Improvements 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)(2). 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) The Commissioner shall 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.
       ``(2)(A) 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.
       ``(B) Appropriations for administrative expenses of the 
     Administration are authorized to be provided on a biennial 
     basis.

                        ``Employment Restriction

       ``(c) The total number of positions in the Administration 
     (other than positions established under section 702) which--
       ``(1) are held by noncareer appointees (within the meaning 
     of section 3132(a)(7) of title 5, United States Code) in the 
     Senior Executive Service, or
       ``(2) have been determined by the President or the Office 
     of Personnel Management to be of a confidential, policy-
     determining, policy-making, or policy-advocating character 
     and have been excepted from the competitive service thereby,

     may not exceed at any time the equivalent of 20 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.

                            ``Data Exchanges

       ``(e)(1) Notwithstanding any other provision of law 
     (including subsections (b), (o), (p), (q), (r), and (u) of 
     section 552a of title 5, United States Code)--
       ``(A) the Secretary shall disclose to the Commissioner any 
     record or information requested in writing by the 
     Commissioner for the purpose of administering any program 
     administered by the Commissioner, if records or information 
     of such type were disclosed to the Commissioner of Social 
     Security in the Department of Health and Human Services under 
     applicable rules, regulations, and procedures in effect 
     before the date of the enactment of the Social Security 
     Independence and Program Improvements Act of 1994; and
       ``(B) the Commissioner shall disclose to the Secretary or 
     to any State any record or information requested in writing 
     by the Secretary to be so disclosed for the purpose of 
     administering any program administered by the Secretary, if 
     records or information of such type were so disclosed under 
     applicable rules, regulations, and procedures in effect 
     before the date of the enactment of the Social Security 
     Independence and Program Improvements Act of 1994.
       ``(2) The Commissioner and the Secretary shall enter into 
     an agreement under which the Commissioner provides the 
     Secretary data concerning the quality of the services and 
     information provided to beneficiaries of the programs under 
     titles XVIII and XIX and the administrative services provided 
     by the Social Security Administration in support of such 
     programs. Such agreement shall stipulate the type of data to 
     be provided and the terms and conditions under which the data 
     are to be provided.
       ``(3) The Commissioner and the Secretary shall periodically 
     review the need for exchanges of information not referred to 
     in paragraph (1) or (2) and shall enter into such agreements 
     as may be necessary and appropriate to provide information to 
     each other or to States in order to meet the programmatic 
     needs of the requesting agencies.
       ``(4)(A) Any disclosure from a system of records (as 
     defined in section 552a(a)(5) of title 5, United States Code) 
     pursuant to this subsection shall be made as a routine use 
     under subsection (b)(3) of section 552a of such title (unless 
     otherwise authorized under such section 552a).
       ``(B) Any computerized comparison of records, including 
     matching programs, between the Commissioner and the Secretary 
     shall be conducted in accordance with subsections (o), (p), 
     (q), (r), and (u) of section 552a of title 5, United States 
     Code.
       ``(5) The Commissioner and the Secretary shall each ensure 
     that timely action is taken to establish any necessary 
     routine uses for disclosures required under paragraph (1) or 
     agreed to pursuant to paragraph (3).''.
       (b) Report on SES Positions under Comprehensive Work Force 
     Plan.--Within 60 days after the establishment by the 
     Commissioner of Social Security of the comprehensive work 
     force plan required under section 704(b)(2) of the Social 
     Security Act (as amended by this Act), the Director of the 
     Office of Personnel Management shall transmit to the 
     Committee on Ways and Means of the House of Representatives 
     and the Committee on Finance of the Senate a report 
     specifying the total number of Senior Executive Services 
     positions authorized for the Social Security Administration 
     in connection with such work force plan.
       (c) Effective Date and Transition Rule for Certain Data 
     Exchange Provisions.--
       (1) Effective date.--Section 704(e)(4) of the Social 
     Security Act (as amended by subsection (a)) shall take effect 
     March 31, 1996.
       (2) Transition rule.--Notwithstanding any other provision 
     of law (including subsections (b), (o), (p), (q), (r), and 
     (u) of section 552a of title 5, United States Code), 
     arrangements for disclosure of records or other information, 
     and arrangements for computer matching of records, which were 
     in effect immediately before the date of the enactment of 
     this Act between the Social Security Administration in the 
     Department of Health and Human Services and other components 
     of such Department may continue between the Social Security 
     Administration established under section 701 of the Social 
     Security Act (as amended by this Act) and such Department 
     during the period beginning on the date of the enactment of 
     this Act and ending March 31, 1996.

     SEC. 105. TRANSFERS TO THE NEW SOCIAL SECURITY 
                   ADMINISTRATION.

       (a) Functions.--
       (1) In general.--There are transferred to the Social 
     Security Administration all functions of the Secretary of 
     Health and Human Services with respect to or in support of 
     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).
       (2) Functions of other agencies.--
       (A) In general.--Subject to subparagraph (B), the Social 
     Security Administration shall also perform--
       (i) the functions of the Department of Health and Human 
     Services, including functions relating to titles XVIII and 
     XIX of the Social Security Act (including adjudications, 
     subject to final decisions by the Secretary of Health and 
     Human Services), that the Social Security Administration in 
     such Department performed as of immediately before the date 
     of the enactment of this Act, and
       (ii) the functions of any other agency for which 
     administrative responsibility was vested in the Social 
     Security Administration in the Department of Health and Human 
     Services as of immediately before the date of the enactment 
     of this Act.
       (B) Rules governing continuation of functions in the 
     administration.--The Social Security Administration shall 
     perform, on behalf of the Secretary of Health and Human 
     Services (or the head of any other agency, as applicable), 
     the functions described in subparagraph (A) in accordance 
     with the same financial and other terms in effect on the day 
     before the date of the enactment of this Act, except to the 
     extent that the Commissioner and the Secretary (or other 
     agency head, as applicable) agree to alter such terms 
     pertaining to any such function or to terminate the 
     performance by the Social Security Administration of any such 
     function.
       (b) Personnel, Assets, Etc.--
       (1) In general.--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.--Unexpended funds transferred 
     pursuant to this subsection shall be used only for the 
     purposes for which the funds were originally appropriated.
       (3) Employment protections.--
       (A) In general.--During the 1-year period beginning March 
     31, 1995,--
       (i) the transfer pursuant to this section of any full-time 
     personnel (except special Government employees) and part-time 
     personnel holding permanent positions shall not cause any 
     such personnel to be separated or reduced in grade or 
     compensation solely as a result of such transfer, and
       (ii) except as provided in subparagraph (B), any such 
     personnel who were not employed in the Social Security 
     Administration in the Department of Health and Human Services 
     immediately before the date of the enactment of this Act 
     shall not be subject to directed reassignment to a duty 
     station outside their commuting area.
       (B) Special rules.--
       (i) In the case of personnel whose duty station is in the 
     Washington, District of Columbia, commuting area immediately 
     before March 31, 1995, subparagraph (A)(ii) shall not apply 
     with respect to directed reassignment to a duty station in 
     the Baltimore, Maryland, commuting area after September 30, 
     1995.
       (ii) In the case of personnel whose duty station is in the 
     Baltimore, Maryland, commuting area immediately before March 
     31, 1995, subparagraph (A)(ii) shall not apply with respect 
     to directed reassignment to a duty station in the Washington, 
     District of Columbia, commuting area after September 30, 
     1995.
       (4) Office space.--Notwithstanding section 7 of the Public 
     Buildings Act of 1959 (40 U.S.C. 606), and subject to 
     available appropriations, the Administrator of General 
     Services may, after consultation with the Commissioner of 
     Social Security and under such terms and conditions as the 
     Administrator finds to be in the interests of the United 
     States--
       (A) acquire occupiable space in the metropolitan area of 
     Washington, District of Columbia, for housing the Social 
     Security Administration, and
       (B) renovate such space as necessary.
       (c) Inter-Agency Transfer Arrangement.--The Secretary of 
     Health and Human Services and the Commissioner of Social 
     Security shall enter into a written inter-agency transfer 
     arrangement (in this subsection referred to as the 
     ``arrangement''), which shall be effective March 31, 1995. 
     Transfers made pursuant to this section shall be in 
     accordance with the arrangement, which shall specify the 
     personnel and resources to be transferred as provided under 
     this section. The terms of such arrangement shall be 
     transmitted not later than January 1, 1995, to the Committee 
     on Ways and Means of the House of Representatives, to the 
     Committee on Finance of the Senate, and to the Comptroller 
     General of the United States. Not later than February 15, 
     1995, the Comptroller General shall submit a report to each 
     such Committee setting forth an evaluation of such 
     arrangement.

     SEC. 106. TRANSITION RULES.

       (a) Transition Rules Relating to Officers of the Social 
     Security Administration.--
       (1) Appointment of initial commissioner of social 
     security.--The President shall nominate for appointment the 
     initial Commissioner of Social Security to serve as head of 
     the Social Security Administration established under section 
     701 of the Social Security Act (as amended by this Act) not 
     later than 60 days after the date of the enactment of this 
     Act.
       (2) Assumption of office of initial commissioner before 
     effective date of new agency.--If the appointment of the 
     initial Commissioner of Social Security pursuant to section 
     702 of the Social Security Act (as amended by this Act) is 
     confirmed by the Senate pursuant to such section 702 before 
     March 31, 1995, the individual shall take office as 
     Commissioner immediately upon confirmation, and, until March 
     31, 1995, such Commissioner shall perform the functions of 
     the Commissioner of Social Security in the Department of 
     Health and Human Services.
       (3) Treatment of inspector general and other 
     appointments.--At any time on or after the date of the 
     enactment of this Act, any of the officers provided for in 
     section 702 of the Social Security Act (as amended by this 
     title) and any of the members of the Social Security Advisory 
     Board provided for in section 703 of such Act (as so amended) 
     may be nominated and take office, under the terms and 
     conditions set out in such sections.
       (4) Compensation for initial officers and board members 
     before effective date of new agency.--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 or employee 
     of the new Social Security Administration and of any member 
     or staff of the Social Security Advisory Board who takes 
     office pursuant to this subsection before March 31, 1995, 
     until such time as funds for that purpose are otherwise 
     available.
       (5) Interim role of current commissioner after effective 
     date of new agency.--In the event that, as of March 31, 1995, 
     an individual appointed to serve as the initial Commissioner 
     of Social Security has not taken office, until such initial 
     Commissioner has taken office, the officer serving on March 
     31, 1995, as Commissioner of Social Security (or Acting 
     Commissioner of Social Security, if applicable) in the 
     Department of Health and Human Services shall, while 
     continuing to serve as such Commissioner of Social Security 
     (or Acting Commissioner of Social Security), serve as 
     Commissioner of Social Security (or Acting Commissioner of 
     Social Security, respectively) in the Social Security 
     Administration established under such section 701 and shall 
     assume the powers and duties under such Act (as amended by 
     this Act) of the Commissioner of Social Security in the 
     Social Security Administration as so established under such 
     section 701. In the event that, as of March 31, 1995, the 
     President has not nominated an individual for appointment to 
     the office of Commissioner of Social Security in the Social 
     Security Administration established under such section 701, 
     then the individual serving as Commissioner of Social 
     Security (or Acting Commissioner of Social Security, if 
     applicable) in the Department of Health and Human Services 
     shall become the Acting Commissioner of Social Security in 
     the Social Security Administration as so established under 
     such section 701.
       (6) Interim inspector general.--The Commissioner of Social 
     Security may appoint an individual to assume the powers and 
     duties under the Inspector General Act of 1978 of Inspector 
     General of the Social Security Administration as established 
     under section 701 of the Social Security Act for a period not 
     to exceed 60 days. The Inspector General of the Department of 
     Health and Human Services may, when so requested by the 
     Commissioner, while continuing to serve as Inspector General 
     in such Department, serve as Inspector General of the Social 
     Security Administration established under such section 701 
     and shall assume the powers and duties under the Inspector 
     General Act of 1978 of Inspector General of the Social 
     Security Administration as established under such section 
     701. The Social Security Administration shall reimburse the 
     Office of Inspector General of the Department of Health and 
     Human Services for costs of any functions performed pursuant 
     to this subsection, from funds available to the 
     Administration at the time the functions are performed. The 
     authority under this paragraph to exercise the powers and 
     duties of the Inspector General shall terminate upon the 
     entry upon office of an Inspector General for the Social 
     Security Administration under the Inspector General Act of 
     1978.
       (7) Abolishment of office of commissioner of social 
     security in the department of health and human services.--
     Effective when the initial Commissioner of Social Security of 
     the Social Security Administration established under section 
     701 of the Social Security Act (as amended by this title) 
     takes office pursuant to section 702 of such Act (as so 
     amended)--
       (A) the position of Commissioner of Social Security in the 
     Department of Health and Human Services is abolished; and
       (B) section 5315 of title 5, United States Code, is amended 
     by striking the following:
       ``Commissioner of Social Security, Department of Health and 
     Human Services.''.
       (b) 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 March 31, 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 by such Commissioner, except that any collective 
     bargaining agreement shall remain in effect until the date of 
     termination specified in such agreement.
       (c) 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 March 31, 1995, 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.
       (d) Continuation of Suits.--Except as provided in this 
     subsection--
       (1) the provisions of this title shall not affect suits 
     commenced before March 31, 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 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. In any suit, action, or other proceeding pending 
     immediately before March 31, 1995, the court or hearing 
     officer may at any time, on the motion of the court or 
     hearing officer 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 title shall not have 
     the effect of releasing or extinguishing any civil or 
     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.
       (f) 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 (other than functions performed 
     pursuant to 105(a)(2)) 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 March 31, 1995. 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.
       (g) 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.

     SEC. 107. CONFORMING AMENDMENTS TO TITLES II AND XVI OF THE 
                   SOCIAL SECURITY ACT.

       (a) In General.--Title II of the Social Security Act (42 
     U.S.C. 401 et seq.) (other than section 201, section 231(c), 
     section 226, and section 226A) and title XVI of such Act (42 
     U.S.C. 1382 et seq.) (other than section 1614(f)(2)(B)) are 
     each amended--
       (1) by striking, wherever it appears, ``Secretary of Health 
     and Human Services'' and inserting ``Commissioner of Social 
     Security'';
       (2) by striking, wherever it appears, ``Department of 
     Health and Human Services'' and inserting ``Social Security 
     Administration'';
       (3) by striking, wherever it appears, ``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, 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
       (b) Amendments to Section 201.--
       (1) Subsections (a)(3), (a)(4), (b)(1), and (b)(2) of 
     section 201 of such Act (42 U.S.C. 401) are amended by 
     striking ``Secretary of Health and Human Services'' and 
     inserting ``Commissioner of Social Security''.
       (2) Subsections (a)(3) and (b)(1) of section 201 of such 
     Act (42 U.S.C. 401) are amended by striking ``such 
     Secretary'' and inserting ``such Commissioner''.
       (3) Section 201(c) of such Act (42 U.S.C. 401(c)) is 
     amended--
       (A) in the first sentence, by inserting ``the Commissioner 
     of Social Security,'' before ``the Secretary of the 
     Treasury''; and
       (B) in the fifth sentence, by striking ``Commissioner of 
     Social Security'' and inserting ``Deputy Commissioner of 
     Social Security''.
       (4) Section 201(g)(1)(A) of such Act (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 the 
     Managing Trustee, 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 for the administration of titles II, XVI, 
     and XVIII of this Act'' and inserting ``by the Department of 
     Health and Human Services for the administration of title 
     XVIII of this Act, and by the Department of the Treasury for 
     the administration of titles II and XVIII of this Act'';
       (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 by 
     striking ``the Department of Health and Human Services'' and 
     inserting ``the Social Security Administration''; and
       (C) in the matter following clause (ii), by striking 
     ``titles II, XVI, and XVIII'' in the first sentence and 
     inserting ``titles II and XVIII'', and 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, title XVI, and title XVIII 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)(A) Section 201(g)(1) of such Act (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, title XVI, and title 
     XVIII for which the Commissioner is responsible 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 of the Treasury,
       ``(II) the portion of such costs which should have been 
     borne by the Federal Old-Age and Survivors Insurance Trust 
     Fund,
       ``(III) the portion of such costs which should have been 
     borne by the Federal Disability Insurance Trust Fund,
       ``(IV) the portion of such costs which should have been 
     borne by the Federal Hospital Insurance Trust Fund, and
       ``(V) the portion of such costs which should have been 
     borne by the Federal Supplementary Medical 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 the administration of title XVIII for which the 
     Secretary is responsible, which should have been borne by the 
     general fund of 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.
       ``(C) After the determinations under subparagraph (B) have 
     been made for any fiscal year, the Commisioner of Social 
     Security and the Secretary shall each certify to the Managing 
     Trustee the amounts, if any, which should be transferred from 
     one to any of the other 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 of the Treasury, 
     in order to ensure that each of the Trust Funds and the 
     general fund of the Treasury have borne their proper share of 
     the costs, incurred during such fiscal year, for--
       ``(i) the parts of the administration of this title, title 
     XVI, and title XVIII for which the Commissioner of Social 
     Security is responsible,
       ``(ii) the parts of the administration of title XVIII for 
     which the Secretary 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.
       ``(D) The determinations required under subclauses (IV) and 
     (V) of subparagraph (B)(i) shall be made in accordance with 
     the cost allocation methodology in existence on the date of 
     the enactment of the Social Security Independence and Program 
     Improvements Act of 1994, until such time as the methodology 
     for making the determinations required under such subclauses 
     is revised by agreement of the Commissioner and the 
     Secretary, except that the determination of the amounts to be 
     borne by the general fund of the Treasury with respect to 
     expenditures incurred in carrying out the functions of the 
     Social Security Administration specified in section 232 shall 
     be made pursuant to the applicable method prescribed under 
     paragraph (4).''.
       (5) Section 201(g)(2) of such Act (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) of such Act (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 Independence and Program Improvements Act of 1994, 
     for determining the costs which should be borne by the 
     general fund of the Treasury of carrying out the functions of 
     the Commissioner, 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, they may modify the method of 
     determining such costs.''.
       (7) Section 201(i)(1) of such Act (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 of such Act (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) of such Act (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) of such Act (42 U.S.C. 401(m)(3)) is 
     amended by striking ``Secretary of Health and Human 
     Services'' and inserting ``Commissioner of Social Security''.
       (c) Amendment to Section 231.--Section 231(c) of such Act 
     (42 U.S.C. 431(c)) is amended by striking ``Secretary 
     determines'' and inserting ``Commissioner of Social Security 
     and the Secretary jointly determine''.

     SEC. 108. ADDITIONAL CONFORMING AMENDMENTS.

       (a) Amendments to Title VII.--
       (1) Title VII of the Social Security Act (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. The Secretary may appoint attorneys and experts without 
     regard to the civil service laws.''.
       (2) Section 706 of such Act (42 U.S.C. 907) is repealed. 
     This paragraph shall not apply with respect to the Advisory 
     Council for Social Security appointed in 1994.
       (3) Paragraph (2) of section 709(b) of such Act (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)''.
       (b) Amendments to Title XI.--
       (1) Section 1101(a) of such Act (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) of such Act (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) of such Act (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) of such Act (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 1106(d) of such Act (added by section 311 of 
     this Act) is amended--
       (A) by striking ``Secretary'' the first place it appears 
     and inserting ``Commissioner of Social Security'';
       (B) by striking ``Secretary'' the second place it appears 
     and inserting ``Commissioner'';
       (C) by striking ``Secretary'' the third place it appears 
     and inserting ``Commissioner in consultation with the 
     Secretary of Health and Human Services''; and
       (D) by striking ``Secretary'' each subsequent place it 
     appears and inserting ``Commissioner''.
       (6) Section 1107(b) of such Act (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''.
       (7) Section 1110 of such Act (42 U.S.C. 1310) is amended--
       (A) by striking ``he'', ``his'', and ``him'' each place 
     they appear (except in subsection (b)(2)(A)) and inserting 
     ``the Commissioner'', ``the Commissioner's'', and ``the 
     Commissioner'', respectively;
       (B) 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'';
       (C) in subsection (b)(1)--
       (i) by striking ``Secretary'' each place it appears in the 
     first two sentences and inserting ``Commissioner'';
       (ii) by striking in the third sentence ``determined by the 
     Secretary,'' and inserting ``determined by the Commissioner 
     with respect to the old-age, survivors, and disability 
     insurance programs under title II and the supplemental 
     security income program under title XVI, and by the Secretary 
     with respect to other titles of this Act,''; and
       (iii) by striking the fourth sentence and inserting the 
     following new sentences: ``If, in order to carry out a 
     project under this subsection, the Commissioner requests a 
     State to make supplementary payments (or the Commissioner 
     makes them pursuant to an agreement under section 1616) to 
     individuals who are not eligible therefor, or in amounts or 
     under circumstances in which the State does not make such 
     payments, the Commissioner shall reimburse such State for the 
     non-Federal share of such payments from amounts appropriated 
     to carry out title XVI. If, in order to carry out a project 
     under this subsection, the Secretary requests a State to 
     provide medical assistance under its plan approved under 
     title XIX to individuals who are not eligible therefor, or in 
     amounts or under circumstances in which the State does not 
     provide such medical assistance, the Secretary shall 
     reimburse such State for the non-Federal share of such 
     assistance from amounts appropriated to carry out title XVI, 
     which shall be provided by the Commissioner to the Secretary 
     for this purpose.'';
       (D) in subsection (b)(2), by striking ``Secretary'' each 
     place it appears and inserting ``Commissioner''; and
       (E) in subsection (b), by striking paragraph (3).
       (8) Subsections (b) and (c) of section 1127 of such Act (42 
     U.S.C. 1320a-6) are each amended by striking ``Secretary'' 
     and inserting ``Commissioner of Social Security''.
       (9) Section 1128(f) of such Act (42 U.S.C. 1320a-7(f)) is 
     amended--
       (A) in paragraph (1), 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'', and
       (B) in paragraph (3), by inserting after ``title II'' the 
     following: ``, except that, in so applying such section and 
     section 205(l), any reference therein to the Commissioner of 
     Social Security shall be considered a reference to the 
     Secretary''.
       (10)(A) Section 1129 of such Act (added by section 206(b) 
     of this Act) is amended--
       (i) by striking ``Secretary'' each place it appears and 
     inserting ``Commissioner of Social Security'';
       (ii) in subsection (a)(1)--
       (I) by striking ``exclude, as provided in section 1128,'' 
     and inserting ``recommend that the Secretary exclude, as 
     provided in section 1128,''; and
       (II) by striking ``and to direct'' and all that follows 
     through ``determines'';
       (iii) in subsection (g)--
       (I) by striking ``Secretary's'' and inserting 
     ``Commissioner's''; and
       (II) by striking ``the provisions'' and all that follows 
     and inserting the following: ``the Commissioner shall notify 
     the Secretary of the final determination and the reasons 
     therefor, and the Secretary shall then notify the entities 
     described in section 1128A(h) of such final determination.'';
       (iv) in subsection (k), by inserting ``based on a 
     recommendation under subsection (a)'' after ``section 1128''; 
     and
       (v) in subsection (l) (added by section 206(e)(1)), by 
     striking ``Department of Health and Human Services'' and 
     inserting ``Social Security Administration''.
       (B) Section 206(g) of this Act is amended--
       (i) by striking ``Secretary of Health and Human Services'' 
     and inserting ``Commissioner of Social Security''; and
       (ii) by striking ``Secretary has exercised'' and inserting 
     ``Commissioner has exercised''.
       (11) Section 1131 of such Act (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) in the matter in subsection (a) following paragraph (3) 
     (as so redesignated), by striking ``he'' and inserting ``the 
     Commissioner of Social Security'', by striking ``paragraph 
     (1)'' and inserting ``paragraph (1) or (2)'', by striking 
     ``paragraph (2)'' and inserting ``paragraph (3)'', and by 
     striking ``paragraph (1) or (2)(A)'' and inserting 
     ``paragraph (1), (2), or (3)(A)''.
       (12) Section 1140 of such Act (42 U.S.C. 1320b-10) (as 
     amended by section 312 of this Act) is amended--
       (A) in subsection (a)(2)--
       (i) by inserting ``(A)'' after ``(2)'';
       (ii) by striking ``or of the Department of Health and Human 
     Services'';
       (iii) by striking ``which the Secretary shall prescribe'' 
     and inserting ``which the Commissioner of Social Security 
     shall prescribe''; and
       (iv) by adding at the end the following new subparagraph:
       ``(B) No person may, for a fee, reproduce, reprint, or 
     distribute any item consisting of a form, application, or 
     other publication of the Department of Health and Human 
     Services unless such person has obtained specific, written 
     authorization for such activity in accordance with 
     regulations which the Secretary shall prescribe.'';
       (B) in subsection (b), by striking ``the Secretary'' and 
     inserting ``the Commissioner or the Secretary (as 
     applicable)'';
       (C) in subsection (c)(2), by striking ``the Secretary'' 
     each place it appears and inserting ``the Commissioner or the 
     Secretary (as applicable)''; and
       (D) in subsection (d), by striking ``the Office of 
     Inspector General of the Department of Health and Human 
     Services'' and inserting ``the Office of the Inspector 
     General of the Social Security Administration or the Office 
     of the Inspector General of the Department of Health and 
     Human Services (as appropriate)''.
       (13) Section 1141 of such Act (42 U.S.C. 1320b-11) is 
     amended--
       (A) by striking ``Secretary'' each place it appears and 
     inserting ``Commissioner of Social Security'';
       (B) by striking ``Secretary's'' each place it appears and 
     inserting ``Commissioner's'';
       (C) in the first sentence of subsection (a), by striking 
     ``under the direction of the Commissioner of Social 
     Security,''; and
       (D) in subsection (d)(6), by striking ``Department of 
     Health Services and inserting ``Social Security 
     Administration''.
       (14) Section 1155 of such Act (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.''.
       (c) Amendments to Title XVIII.--
       (1) Section 1817 of such Act (42 U.S.C. 1395i) is amended--
       (A) in subsection (a), by striking ``Secretary of Health 
     and Human Services'' each place it appears and inserting 
     ``Commissioner of Social Security'';
       (B) in subsection (b), by inserting ``the Commissioner of 
     Social Security,'' before ``the Secretary of the Treasury''; 
     and
       (C) in subsection (f), by striking ``Secretary of Health 
     and Human Services'' each place it appears and inserting 
     ``Commissioner of Social Security''.
       (2) Section 1840(a) of such Act (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 1841(b) of such Act (42 U.S.C. 1395t) is 
     amended by inserting ``the Commissioner of Social Security,'' 
     before ``the Secretary of the Treasury''.
       (4) Section 1872 of such Act (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''.
       (5) Sections 1866(h)(1), 1869(b)(1), and 1881(g)(3) of such 
     Act (42 U.S.C. 1395cc(h)(1), 1395ff(b)(1), 1395rr(g)(3)) are 
     amended by inserting after ``section 205(g)'' the following: 
     ``, except that, in so applying such sections and in applying 
     section 205(l) thereto, 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''.
       (6) Section 1876(c)(5)(B) of such Act (42 U.S.C. 
     1395mm(c)(5)(B)) is amended by adding at the end the 
     following: ``In applying sections 205(b) and 205(g) as 
     provided in this subparagraph, and in applying section 205(l) 
     thereto, 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.''.
       (d) Amendments to Title XIX.--
       (1) Section 1902(a)(10)(A)(ii)(XI) of such Act (42 U.S.C. 
     1396a(a)(10)(A)(ii)(XI)) is amended by striking ``Secretary'' 
     and inserting ``Commissioner of Social Security''.
       (2) Section 1905(j) of such Act (42 U.S.C. 1396d(j)) is 
     amended by striking ``Secretary'' and inserting 
     ``Commissioner of Social Security''.
       (3) Section 1905(q)(2) of such Act (42 U.S.C. 1396d(q)(2)) 
     is amended by striking ``Secretary'' and inserting 
     ``Commissioner of Social Security''.
       (4) Section 1910(b)(2) of such Act (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 in applying section 205(l) 
     thereto, 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) Section 1918 of such Act (42 U.S.C. 1396q) is amended 
     by inserting after ``title II'' the following: ``, except 
     that, in so applying such subsections, and in applying 
     section 205(l) thereto, 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''.
       (e) Amendments to Title 5, United States Code.--Title 5, 
     United States Code, is amended--
       (1) by adding at the end of section 5312 the following new 
     item:
       ``Commissioner of Social Security, Social Security 
     Administration.'';
       (2) by adding at the end of section 5313 the following new 
     item:
       ``Deputy Commissioner of Social Security, Social Security 
     Administration.'';
       (3) by adding at the end of section 5315 the following new 
     item:
       ``Inspector General, Social Security Administration.'';
       (4) by striking ``Secretary of Health, Education, and 
     Welfare'' each place it appears in section 8141 and inserting 
     ``Commissioner of Social Security''; and
       (5) by striking ``Secretary of Health and Human Services'' 
     in section 8347(m)(3) and inserting ``Commissioner of Social 
     Security''.
       (f) 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''.
       (g) 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''.
       (h) Amendments to Internal Revenue Code of 1986.--
       (1) Subsections (c)(1), (c)(2)(E), (e)(2), (g)(1), 
     (g)(2)(A), and (g)(2)(B) of section 1402 of the Internal 
     Revenue Code of 1986 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 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 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 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 
     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 is amended--
       (A) by striking ``Department of Health and Human Services'' 
     in the heading 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 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 is amended by striking 
     ``Secretary of Health and Human Services'' and inserting 
     ``Commissioner of Social Security''.
       (9)(A) Subsections (b)(2) and (h) of section 9704 of such 
     Code are amended by striking ``Secretary of Health and Human 
     Services'' and inserting ``Commissioner of Social Security''.
       (B) Section 9706 of such Code is amended--
       (i) by striking ``Secretary of Health and Human Services'' 
     each place it appears and inserting ``Commissioner of Social 
     Security'';
       (ii) in such section as amended by clause (i), by striking 
     ``Secretary'' each place it appears and inserting 
     ``Commissioner''; and
       (iii) in subsection (d)(3), by striking ``Secretary's'' and 
     inserting ``Commissioner's''.
       (i) Amendments to Black Lung Benefits Act.--
       (1) Section 402(c) of the Black Lung Benefits Act (30 
     U.S.C. 902(c)) is amended by striking ``where used in part 
     B'' and all that follows through ``part C'' and insert 
     ``where used in part C''.
       (2) Part B of such Act (30 U.S.C. 921 et seq.) is amended 
     by striking ``Secretary of Health, Education, and Welfare'' 
     each place it appears and inserting ``Commissioner of Social 
     Security, and by striking ``Secretary'' each place it 
     otherwise appears in reference to the Secretary of Health and 
     Human Services and inserting ``Commissioner of Social 
     Security''.
       (3) Section 426 of such Act (30 U.S.C. 936) is amended--
       (A) in subsection (a), by striking ``and the Secretary of 
     Health, Education, and Welfare'' and inserting ``, the 
     Commissioner of Social Security, and the Secretary of Health 
     and Human Services''; and
       (B) in subsection (b), by striking ``the Secretary of 
     Health, Education, and Welfare'' and inserting ``the 
     Commissioner of Social Security''.
       (4) Section 435 of such Act (30 U.S.C. 945) is amended by 
     striking ``Secretary of Health, Education, and Welfare'' each 
     place it appears and inserting ``Commissioner of Social 
     Security''.
       (5) Section 508 of such Act (30 U.S.C. 957) is amended by 
     striking ``the Secretary of Health, Education, and Welfare,'' 
     and inserting ``the Secretary of Health and Human Services, 
     the Commissioner of Social Security,''.
       (j) Amendments to Title 31, United States Code.--
       (1) Section 901(b)(2) of title 31, United States Code, is 
     amended by adding at the end the following:
       ``(H) The Social Security Administration.''.
       (2) Section 3720A(f)(2) of such title 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.--
       (1) Section 9(a)(1) of the Inspector General Act of 1978 (5 
     U.S.C. App.) is amended--
       (A) by striking ``and'' at the end of suchparagraph (V); 
     and
       (B) by adding at the end the following new subparagraph:
       ``(W) of the Social Security Administration, the functions 
     of the Inspector General of the Department of Health and 
     Human Services which are transferred to the Social Security 
     Administration by the Social Security Independence and 
     Program Improvements Act of 1994 (other than functions 
     performed pursuant to section 105(a)(2) of such Act), except 
     that such transfers shall be made in accordance with the 
     provisions of such Act and shall not be subject to 
     subsections (b) through (d) of this section; and''.
       (2) Section 11 of such Act (5 U.S.C. App.) is amended--
       (A) in paragraph (1), by inserting ``; or the Commissioner 
     of Social Security, Social Security Administration'' before 
     ``; as the case may be''; and
       (B) in paragraph (2), by inserting ``, or the Social 
     Security Administration'' before ``; as the case may be''.
       (m) Section 505 of the Social Security Disability 
     Amendments of 1980.--Section 505 of the Social Security 
     Disability Amendments of 1980 is amended--
       (1) in subsection (a), by striking ``Secretary of Health 
     and Human Services'' and inserting ``Commissioner of Social 
     Security'';
       (2) in subsection (a)(3), by amending the first sentence to 
     read as follows: ``In the case of any experiment or 
     demonstration project under paragraph (1) which is initiated 
     before June 10, 1996, the Commissioner may waive compliance 
     with the benefit requirements of title II of the Social 
     Security Act, and the Secretary of Health and Human Services 
     may (upon the request of the Commissioner) waive compliance 
     with the benefits requirements of title XVIII of such Act, 
     insofar as is necessary for a thorough evaluation of the 
     alternative methods under consideration.''; and
       (3) in subsections (a) and (c), by striking ``Secretary'' 
     each place it otherwise appears and inserting 
     ``Commissioner''.

     SEC. 109. 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 title or a provision of law amended by 
     this title), 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 or other functions performed by 
     the Social Security Administration pursuant to section 
     105(a)(2) of this 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 title or a provision of law amended by 
     this title), 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 or other functions performed by 
     the Commissioner of Social Security pursuant to section 
     105(a)(2) of this 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 title or a provision of law amended by this title), 
     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 or other 
     functions performed by the officer or employee of the Social 
     Security Administration pursuant to section 105(a)(2) of this 
     Act, such reference shall be considered a reference to the 
     appropriate officer or employee of the Social Security 
     Administration.

     SEC. 110. EFFECTIVE DATES.

       (a) In General.--Except as otherwise provided in this 
     title, this title, and the amendments made by such title, 
     shall take effect March 31, 1995.
       (b) Transition Rules.--Section 106 shall take effect on the 
     date of the enactment of this Act.
       (c) Exceptions.--The amendments made by section 103, 
     subsections (b)(4) and (c) of section 105, and subsections 
     (a)(1), (e)(1), (e)(2), (e)(3), and (l)(2) of section 108 
     shall take effect on the date of the enactment of this Act.
        TITLE II--PROGRAM IMPROVEMENTS RELATING TO OASDI AND SSI

     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 ``(A)'' after ``(j)(1)'';
       (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''; and
       (iii) by adding at the end the following new subparagraph:
       ``(B) 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. In any case in which such certification is so deemed 
     under this subparagraph to serve the interest of an 
     individual, the Secretary shall include, in such individual's 
     notification of entitlement, a notice that alcoholism or drug 
     addiction is a contributing factor material to the 
     Secretary's determination of such individual's disability and 
     that the Secretary is therefore required to make a 
     certification of payment of such individual's benefits to a 
     representative payee.''.
       (B) Conforming amendment.--Section 205(j)(2)(D)(ii)(II) of 
     such Act (42 U.S.C. 402(j)(2)(D)(ii)(II)) is amended by 
     striking ``or under the age of 15'' and inserting ``, under 
     the age of 15 years, or (if alcoholism or drug addiction is a 
     contributing factor material to the Secretary's determination 
     that the individual is under a disability) is eligible for 
     benefits under this title by reason of disability.''.
       (C) 90-day delay in deferral or suspension of benefits for 
     current beneficiaries.--In the case of an individual who, as 
     of 180 days after the date of the enactment of this Act, has 
     been determined to be under a disability, if alcoholism or 
     drug addiction is a contributing factor material to the 
     determination of the Secretary of Health and Human Services 
     that the individual is under a disability, the Secretary may, 
     notwithstanding clauses (i) and (ii) of section 205(j)(2)(D) 
     of the Social Security Act, make direct payment of benefits 
     to such individual during the 90-day period commencing with 
     the date on which such individual is provided the notice 
     described in subparagraph (D)(ii) of this paragraph, until 
     such time during such period as the selection of a 
     representative payee is made pursuant to section 205(j) of 
     such Act.
       (D) Effective date.--
       (i) General rule.--Except as provided in clause (ii), the 
     amendments made by this paragraph shall apply with respect to 
     benefits paid in months beginning after 180 days after the 
     date of the enactment of this Act.
       (ii) Treatment of current beneficiaries.--In any case in 
     which--

       (I) an individual is entitled to benefits based on 
     disability (as defined in section 205(j)(7) of the Social 
     Security Act, as amended by this section),
       (II) the determination of disability was made by the 
     Secretary of Health and Human Services during or before the 
     180-day period following the date of the enactment of this 
     Act, and
       (III) alcoholism or drug addiction is a contributing factor 
     material to the Secretary's determination that the individual 
     is under a disability,

     the amendments made by this paragraph shall apply with 
     respect to benefits paid in months after the month in which 
     such individual is notified by the Secretary in writing that 
     alcoholism or drug addiction is a contributing factor 
     material to the Secretary's determination and that the 
     Secretary is therefore required to make a certification of 
     payment of such individual's benefits to a representative 
     payee.
       (E) 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, cost, and equity of 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 December 31, 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 Federal, State, or local government agency whose 
     mission is to carry out income maintenance, social service, 
     or health care-related activities,
       ``(III) a State or local government agency with fiduciary 
     responsibilities, or
       ``(IV) a designee of an agency (other than of a Federal 
     agency) referred to in the preceding subclauses of this 
     clause, if the Secretary deems it appropriate,

     unless the Secretary determines that selection of a family 
     member would be appropriate.''.
       (B) Availability of public agencies and other qualified 
     organizations to serve as representative payees.--
       (i) Allowable fees.--Section 205(j)(4)(A) of such Act (42 
     U.S.C. 405(j)(4)) is amended--

       (I) by redesignating clauses (i) and (ii) as subclauses (I) 
     and (II), respectively;
       (II) by inserting ``(i)'' after ``(4)(A)'';
       (III) by striking subclause (II) (as redesignated by 
     subclause (I) of this clause) and inserting the following:

       ``(II) $25.00 per month ($50.00 per month in any case in 
     which the 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).'';

       (IV) by inserting, after and below subclause (II) (as 
     amended), the following new sentence:

     ``The Secretary shall adjust annually (after 1995) each 
     dollar amount set forth in subclause (II) under procedures 
     providing for adjustments in the same manner and to the same 
     extent as adjustments are provided for under the procedures 
     used to adjust benefit amounts under section 215(i)(2)(A), 
     except that any amount so adjusted that is not a multiple of 
     $1.00 shall be rounded to the nearest multiple of $1.00.''; 
     and

       (V) by adding at the end the following new clause:

       ``(ii) In the case of an individual who is no longer 
     currently entitled to monthly insurance benefits under this 
     title but to whom all past-due benefits have not been paid, 
     for purposes of clause (i), any amount of such past-due 
     benefits payable in any month shall be treated as a monthly 
     benefit referred to in clause (i)(I).''.
       (ii) Inclusion of State and local agencies as qualified 
     organizations.--Section 205(j)(4)(B) of such Act (42 U.S.C. 
     405(j)(4)(B))) is amended--

       (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).

       (iii) Retroactive repeal of sunset.--Effective July 1, 
     1994, section 205(j)(4) of such Act (42 U.S.C. 405(j)(4)) is 
     amended by striking subparagraph (D).
       (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.''.
       (D) Effective date.--Except as provided in subparagraph 
     (B)(iii), the amendments made by this paragraph shall apply 
     with respect to months beginning after 90 days after the date 
     of the enactment of this Act.
       (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) 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, 
     such individual shall comply with the provisions of this 
     subsection. In any case in which an individual is required to 
     comply with the provisions of this subsection, the Secretary 
     shall include, in such individual's notification of 
     entitlement, a notice informing such individual of such 
     requirement.
       ``(B) Notwithstanding any other provision of this title, if 
     an individual who is required under subparagraph (A) to 
     comply with the provisions of this subsection is determined 
     by the Secretary not to be in compliance with the provisions 
     of this subsection, such individual's benefits based on 
     disability shall be suspended for a period--
       ``(i) commencing with the first month following the month 
     in which such individual is notified by the Secretary of the 
     determination of noncompliance and that the individual's 
     benefits will be suspended, and
       ``(ii) 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 provisions for the applicable 
     period specified in paragraph (3).
       ``(2)(A) An individual described in paragraph (1) is in 
     compliance with the requirements of this subsection for a 
     month if in such month--
       ``(i) such individual undergoes substance abuse treatment 
     which is appropriate for such individual's condition 
     diagnosed as alcoholism or drug addiction and for the stage 
     of such individual's rehabilitation and which is conducted at 
     an institution or facility approved for purposes of this 
     subsection by the Secretary, and
       ``(ii) such individual complies in such month with the 
     terms, conditions, and requirements of such treatment and 
     with requirements imposed by the Secretary under paragraph 
     (5).
       ``(B) An individual described in paragraph (1) may be 
     determined as failing to comply with the requirements of this 
     subsection for a month only if treatment meeting the 
     requirements of subparagraph (A)(i) is available for that 
     month, as determined pursuant to 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, or
       ``(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), the 
     termination month with respect to such entitlement.
       ``(5)(A) The Secretary shall provide for the monitoring and 
     testing of individuals who are receiving benefits under this 
     title and who as a condition of payment of such benefits are 
     required to be undergoing treatment under paragraph (1) and 
     complying with the terms, conditions, and requirements 
     thereof as described in paragraph (2)(A), in order to assure 
     such compliance.
       ``(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 appropriate substance abuse 
     treatment required under this subsection, and
       ``(ii) establishing guidelines to be used to review and 
     evaluate their compliance, including measures of the progress 
     expected to be achieved by participants in such programs.
       ``(C)(i) For purposes of carrying out the requirements of 
     subparagraphs (A) and (B), the Secretary shall provide for 
     the establishment of one or more referral and monitoring 
     agencies for each 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.
       ``(D) There are authorized to be transferred from the 
     Federal Old-Age and Survivors Insurance Trust Fund and the 
     Federal Disability Insurance Trust Fund such sums as are 
     necessary to carry out the requirements of this paragraph for 
     referral, monitoring, and testing.
       ``(6)(A) 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--
       ``(i) the amount of such past-due benefit paid in such 
     month, and
       ``(ii) the amount of any benefit for the preceding month 
     under such current entitlement which is payable in such 
     month,
     does not exceed, subject to subparagraph (B), twice the 
     amount of such individual's benefit for the preceding month 
     (determined without applying any reductions or deductions 
     under this title).
       ``(B)(i) In the case of an individual who is no longer 
     currently entitled to monthly insurance benefits under this 
     title but to whom any amount of past-due benefits has not 
     been paid, for purposes of subparagraph (A), such 
     individual's monthly insurance benefit for such individual's 
     last month of entitlement shall be treated as such 
     individual's benefit for the preceding month.
       ``(ii) For the first month in which an individual's past-
     due benefits referred to in subparagraph (A) are paid, the 
     amount of the limitation provided in subparagraph (A) shall 
     be increased by the amount of any debts of such individual 
     related to housing which are outstanding as of the end of the 
     preceding month and which are resulting in a high risk of 
     homelessness for such individual.
       ``(C) Upon the death of an individual to whom payment of 
     past-due benefits has been limited under subparagraph (A), 
     any amount of such past-due benefits remaining unpaid shall 
     be treated as an underpayment for purposes of section 204.
       ``(D) In the case of an individual who would be entitled to 
     benefits based on disability but for termination of such 
     benefits under paragraph (4) or (7), such individual shall be 
     entitled to payment of past-due benefits under this paragraph 
     as if such individual continued to be entitled to such 
     terminated benefits.
       ``(7)(A) Subject to subparagraph (B), in the case of any 
     individual entitled to benefits based on disability, if--
       ``(i) alcoholism or drug addiction is a contributing factor 
     material to the Secretary's determination that such 
     individual is under a disability, and
       ``(ii) as of the end of the 36-month period beginning with 
     such individual's first month of entitlement, such individual 
     would not otherwise be disabled but for alcoholism or drug 
     addiction,
     the month following such 36-month 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), the 
     termination month with respect to such entitlement. Such 
     individual whose entitlement is terminated under this 
     paragraph may not be entitled to benefits based on disability 
     for any month following such 36-month period if, in such 
     following month, alcoholism or drug addiction is a 
     contributing factor material to the Secretary's determination 
     that such individual is under a disability.
       ``(B) In determining whether the 36-month period referred 
     to in subparagraph (A) has elapsed--
       ``(i) a month shall not be taken into account unless the 
     Secretary determines, under regulations of the Secretary, 
     that treatment required under this subsection is available to 
     the individual for the month, and
       ``(ii) any month for which a suspension is in effect for 
     the individual under paragraph (1)(B) shall not be taken into 
     account.
       ``(8) 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), (4), or (7) shall be payable as though such 
     paragraph did not apply.
       ``(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) Report.--Not later than December 31, 1996, the 
     Secretary shall submit to the Committee on Ways and Means of 
     the House of Representatives and the Committee on Finance of 
     the Senate a full and complete report on the Secretary's 
     activities under paragraph (5) of section 225(c) of the 
     Social Security Act (as amended by subparagraph (A)). Such 
     report shall include the number and percentage of individuals 
     referred to in such paragraph who have not received regular 
     drug testing since the effective date of such paragraph.
       (C) Sunset of 36-month rule.--Section 225(c)(7) of the 
     Social Security Act (added by subparagraph (A)) shall cease 
     to be effective with respect to benefits for months after 
     September 2004.
       (D) Preservation of medicare benefits.--
       (i) 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 
     monthly insurance benefit for any month is terminated or is 
     otherwise not payable solely by reason of paragraph (1) or 
     (7) of section 225(c) shall be treated as entitled to such 
     benefit for such month.''.
       (ii) Section 226A of such Act (42 U.S.C. 426A) is amended 
     by adding at the end the following:
       ``(c) For purposes of this section, each person whose 
     monthly insurance benefit for any month is terminated or is 
     otherwise not payable solely by reason of paragraph (1) or 
     (7) of section 225(c) shall be treated as entitled to such 
     benefit for such month.''.
       (E) Effective date.--
       (i) In general.--Except as otherwise provided in this 
     paragraph, the amendments made 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) which are otherwise payable in months beginning 
     after 180 days after the date of the enactment of this Act. 
     The Secretary of Health and Human Services shall issue 
     regulations necessary to carry out the amendments made by 
     this paragraph not later than 180 days after the date of the 
     enactment of this Act.
       (ii) Referral and monitoring agencies.--Section 225(c)(5) 
     of the Social Security Act (added by this subsection) shall 
     take effect 180 days after the date of the enactment of this 
     Act.
       (iii) Termination after 36 months.--Section 225(c)(7) of 
     the Social Security Act (added by this subsection) shall 
     apply with respect to benefits based on disability (as so 
     defined) for months beginning after 180 days after the date 
     of the enactment of this Act.
       (F) Transition rules for current beneficiaries.--In any 
     case in which an individual is entitled to benefits based on 
     disability, the determination of disability was made by the 
     Secretary of Health and Human Services during or before the 
     180-day period following the date of the enactment of this 
     Act, and alcoholism or drug addiction is a contributing 
     factor material to the Secretary's determination that the 
     individual is under a disability--
       (i) Treatment requirement.--Paragraphs (1) through (4) of 
     section 225(c) of the Social Security Act (added by this 
     subsection) shall apply only with respect to benefits paid in 
     months after the month in which such individual is notified 
     by the Secretary in writing that alcoholism or drug addiction 
     is a contributing factor material to the Secretary's 
     determination and that such individual is therefore required 
     to comply with the provisions of section 225(c) of such Act.
       (ii) Termination after 36 months.--

       (I) In general.--For purposes of section 225(c)(7) of the 
     Social Security Act (added by this subsection), the first 
     month of entitlement beginning after 180 days after the date 
     of the enactment of this Act shall be treated as the 
     individual's first month of entitlement to such benefits.
       (II) Concurrent beneficiaries currently under treatment.--
     In any case in which the individual is also entitled to 
     benefits under title XVI and, as of 180 days after the date 
     of the enactment of this Act, such individual is undergoing 
     treatment required under section 1611(e)(3) of the Social 
     Security Act (as in effect immediately before the date of the 
     enactment of this Act), the Secretary of Health and Human 
     Services shall notify such individual of the provisions of 
     section 225(c)(7) of the Social Security Act (added by this 
     subsection) not later than 180 days after the date of the 
     enactment of this Act.

       (III) Concurrent beneficiaries not currently under 
     treatment.--In any case in which the individual is also 
     entitled to benefits under title XVI but, as of 180 days 
     after the date of the enactment of this Act, such individual 
     is not undergoing treatment described in subclause (II), 
     section 225(c)(7) (added by this subsection) shall apply only 
     with respect to benefits for months after the month in which 
     treatment required under section 1611(e)(3) of the Social 
     Security Act (as amended by subsection (b)) is available, as 
     determined under regulations of the Secretary of Health and 
     Human Services, and the Secretary notifies such individual of 
     the availability of such treatment and describes in such 
     notification the provisions of section 225(c)(7) of the 
     Social Security Act (added by this subsection).

       (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 shall apply the criteria described in 
     subparagraph (A) with respect to services performed by any 
     individual without regard to the legality of such 
     services.''.
       (B) Conforming amendment relating to trial work.--Section 
     222(c)(2) of such Act (42 U.S.C. 422(c)(2)) is amended by 
     inserting ``(whether legal or illegal)'' after ``activity''.
       (C) 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)--

       (I) by inserting ``(I)'' after ``(ii)'';
       (II) by striking ``or in the case of any individual or 
     eligible spouse referred to in section 1611(e)(3)(A),''; and
       (III) by adding after and below the end the following:

       ``(II) In the case of an individual eligible for 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 the individual under this 
     title. In any case in which such payment is so deemed under 
     this subclause to serve the interest of an individual, the 
     Secretary shall include, in the individual's notification of 
     such eligibility, a notice that alcoholism or drug addiction 
     is a contributing factor material to the Secretary's 
     determination that the individual is disabled and that the 
     Secretary is therefore required to pay the individual's 
     benefits to a representative payee.''; 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 addiction is a 
     contributing factor material to the Secretary's determination 
     that the individual is disabled) is eligible for benefits 
     under this title by reason of disability.''.
       (C) Effective date.--The amendments made by this paragraph 
     shall apply with respect to 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)), as amended by paragraph (1)(B) of this 
     subsection, 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 eligible for 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 Federal, State, or local government agency whose 
     mission is to carry out income maintenance, social service, 
     or health care-related activities;
       ``(III) a State or local government agency with fiduciary 
     responsibilities; or
       ``(IV) a designee of an agency (other than of a Federal 
     agency) referred to in the preceding subclauses of this 
     clause, if the Secretary deems it appropriate,

     unless the Secretary determines that selection of a family 
     member would 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.--
       (i) Allowable fees.--Section 1631(a)(2)(D) of such Act (42 
     U.S.C. 1383(a)(2)(D)) is amended--

       (I) in clause (i)--

       (aa) by striking subclause (II) and inserting the 
     following:
       ``(II) $25.00 per month ($50.00 per month in any case in 
     which an individual is eligible for 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).''; and
       (bb) by inserting after the 1st sentence the following:

     ``The Secretary shall adjust annually (after 1995) each 
     dollar amount set forth in subclause (II) of this clause 
     under procedures providing for adjustments in the same manner 
     and to the same extent as adjustments are provided for under 
     the procedures used to adjust benefit amounts under section 
     215(i)(2)(A), except that any amount so adjusted that is not 
     a multiple of $1.00 shall be rounded to the nearest multiple 
     of $1.00.''; and

       (II) by adding at the end the following:

       ``(v) In the case of an individual who is no longer 
     eligible for benefits under this title but to whom any amount 
     of past-due benefits under this title has not been paid, for 
     purposes of clause (i), any amount of such past-due benefits 
     payable in any month shall be treated as a monthly benefit 
     referred to in clause (i)(I).''.
       (ii) Inclusion of state and local agencies as qualified 
     organizations.--Section 1631(a)(2)(D)(ii) of such Act (42 
     U.S.C. 1383(a)(2)(D)(ii)) is amended--

       (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).
       (iii) Retroactive repeal of sunset.--

       (I) Repeal.--Effective July 1, 1994, section 1631(a)(2)(D) 
     of such Act (42 U.S.C. 1383(a)(2)(D)) is amended by striking 
     clause (iv).
       (II) Conforming amendment.--Section 1631(a)(2)(D) of such 
     Act (42 U.S.C. 1383(a)(2)(D)) is amended by redesignating 
     clause (v) (as added by clause (i)(II) of this subparagraph) 
     as clause (iv).

       (C) Effective date.--Except as provided in subparagraph 
     (B)(iii)(I), the amendments made by this paragraph shall 
     apply with respect to months beginning after 90 days after 
     the date of the enactment of this Act.
       (3) Nonpayment or termination of benefits.--
       (A) In general.--Section 1611(e)(3)(A) of such Act (42 
     U.S.C. 1382(e)(3)(A)) is amended to read as follows:
       ``(A)(i)(I) In the case of any individual eligible for 
     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 the individual 
     is disabled, the individual shall comply with the provisions 
     of this subparagraph. In any case in which an individual is 
     required to comply with the provisions of this subparagraph, 
     the Secretary shall include in the individual's notification 
     of such eligibility a notice informing the individual of such 
     requirement.
       ``(II) Notwithstanding any other provision of this title, 
     if an individual who is required under subclause (I) to 
     comply with the requirements of this subparagraph is 
     determined by the Secretary not to be in compliance with the 
     provisions of this subparagraph, the individual's benefits 
     under this title by reason of disability shall be suspended 
     for a period--
       ``(aa) commencing with the first month following the month 
     in which the individual is notified by the Secretary of the 
     determination of noncompliance and that the individual's 
     benefits will be suspended; and
       ``(bb) ending with the month preceding the first month, 
     after the determination of noncompliance, in which the 
     individual demonstrates that he or she has reestablished and 
     maintained compliance with such provisions 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 in such month--
       ``(aa) the individual undergoes substance abuse treatment, 
     which is appropriate for the individual's condition diagnosed 
     as alcoholism or drug addiction and for the stage of the 
     individual's rehabilitation and which is conducted at an 
     institution or facility approved for purposes of this 
     subparagraph by the Secretary; and
       ``(bb) the individual complies in such month with the 
     terms, conditions, and requirements of the treatment and with 
     requirements imposed by the Secretary under this paragraph.
       ``(II) An individual described in clause (i) may be 
     determined as failing to comply with the requirements of this 
     subparagraph for a month only if treatment meeting the 
     requirements of subclause (I)(aa) is available for the month, 
     as determined pursuant to 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 who is not in compliance with this 
     paragraph for 12 consecutive months shall not be eligible for 
     supplemental security income benefits under this title. The 
     preceding sentence shall not be construed to prevent the 
     individual from reapplying and becoming eligible for such 
     benefits.
       ``(v)(I) In the case of any individual eligible for 
     benefits under this title by reason of disability, if--
       ``(aa) alcoholism or drug addiction is a contributing 
     factor material to the Secretary's determination that the 
     individual is disabled; and
       ``(bb) as of the end of the 36-month period beginning with 
     the 1st month for which such benefits by reason of disability 
     are payable to the individual, the individual would not 
     otherwise be disabled but for alcoholism or drug addiction,

     the individual shall not be eligible for such benefits by 
     reason of disability for any month following such 36-month 
     period if, in such following month, alcoholism or drug 
     addiction would be a contributing factor material to the 
     Secretary's determination that the individual is disabled, 
     notwithstanding section 1619(a).
       ``(II) An individual whose entitlement to benefits under 
     title II based on disability has been terminated by reason of 
     section 225(c)(7) shall not be eligible for 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, 
     for any month after the individual's termination month 
     (within the meaning of section 223(a)(1) or subsection 
     (d)(1)(G)(i), (e)(1), or (f)(1) of section 202, as 
     applicable) with respect to such benefits.
       ``(III) Any month for which a suspension is in effect for 
     the individual under clause (i)(II) shall not be taken into 
     account in determining whether any 36-month period referred 
     to in this clause has elapsed.
       ``(vi)(I) In the case of any individual who is eligible for 
     benefits under this title for any month solely by reason of 
     disability, if alcoholism or drug addiction is a contributing 
     factor material to the Secretary's determination that the 
     individual is disabled, payment of any benefits under this 
     title the payment of which is past due shall be made in any 
     month only to the extent that the sum of--
       ``(aa) the amount of the past-due benefit paid in the 
     month; and
       ``(bb) the amount of any benefit under this title which is 
     payable to the individual for the month,
     does not exceed twice the maximum benefit payable under this 
     title to an eligible individual for the preceding month.
       ``(II) For the first month in which an individual's past-
     due benefits referred to in subclause (I) are paid, the 
     amount of the limitation provided in subclause (I) shall be 
     increased by the amount of any debts of the individual 
     related to housing which are outstanding as of the end of the 
     preceding month and which are resulting in a high risk of 
     homelessness for the individual.
       ``(III) Upon the death of an individual to whom payment of 
     past-due benefits has been limited under subclause (I), any 
     amount of such past-due benefits remaining unpaid shall be 
     treated as an underpayment for purposes of section 
     1631(b)(1)(A).
       ``(IV) As used in this clause, the term `benefits under 
     this title' includes supplementary payments pursuant to an 
     agreement for Federal administration under section 1616(a), 
     and payments pursuant to an agreement entered into under 
     section 212(b) of Public Law 93-66.
       ``(V) In the case of an individual who would be eligible 
     for benefits under this title by reason of disability but for 
     termination of such benefits under clause (iv) or (v), the 
     individual shall be eligible for payment of past-due benefits 
     under this clause as if the individual continued to be 
     eligible for such terminated benefits.
       ``(VI) Subclause (I) shall not apply to payments under 
     section 1631(g).''.
       (B) Referral, monitoring, and treatment.--
       (i) In general.--Section 1611(e)(3)(B) of such Act (42 
     U.S.C. 1382(e)(3)(B)) is amended--

       (I) by inserting ``(i)'' after ``(B)'';
       (II) by striking the 2nd sentence; 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 appropriate 
     substance abuse treatment under this subparagraph; and
       ``(II) establishing guidelines to be used to review and 
     evaluate their compliance, including measures of the progress 
     expected to be achieved by participants in such programs.
       ``(iii)(I) For purposes of carrying out the requirements of 
     clauses (i) and (ii), the Secretary shall provide for the 
     establishment of 1 or more referral and monitoring agencies 
     for each State.
       ``(II) Each referral and monitoring agency for a State 
     shall--
       ``(aa) identify appropriate placements, for individuals 
     residing in the State who are eligible for 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 (A)(ii)(I);
       ``(bb) refer such individuals to such placements for such 
     treatment; and
       ``(cc) monitor compliance with the requirements of 
     subparagraph (A) by individuals who are referred by the 
     agency to such placements, and promptly report to the 
     Secretary any failure to comply with such requirements.''.
       (ii) Report.--Not later than December 31, 1996, the 
     Secretary shall submit to the Committee on Ways and Means of 
     the House of Representatives and the Committee on Finance of 
     the Senate a full and complete report on the Secretary's 
     activities under section 1611(e)(3)(B) of the Social Security 
     Act. The report shall include the number and percentage of 
     individuals referred to in such paragraph who have not 
     received regular drug testing since the effective date of the 
     amendments made by clause (i) of this subparagraph.
       (C) Sunset of 36-month rule.--Section 1611(e)(3)(A)(v) of 
     the Social Security Act (added by subparagraph (A) of this 
     paragraph) shall cease to be effective with respect to 
     benefits for months after September 2004.
       (D) 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 clause (i) or (v) of section 1611(e)(3)(A) shall be 
     treated, for purposes of title XIX, as receiving benefits 
     under this title for the month.''.
       (E) Effective date.--
       (i) In general.--Except as otherwise provided in this 
     paragraph, the amendments made by this paragraph shall apply 
     with respect to supplemental security income benefits under 
     title XVI of the Social Security Act by reason of disability 
     which are otherwise payable in months beginning after 180 
     days after the date of the enactment of this Act. The 
     Secretary of Health and Human Services shall issue 
     regulations necessary to carry out the amendments made by 
     this paragraph not later than 180 days after such date of 
     enactment.
       (ii) Referral and monitoring agencies.--The amendments made 
     by subparagraph (B) shall take effect 180 days after the date 
     of the enactment of this Act.
       (iii) Termination after 36 months.--Clause (v) of section 
     1611(e)(3)(A) of the Social Security Act (added by the 
     amendment made by subparagraph (A) of this paragraph) shall 
     apply with respect to supplemental security income benefits 
     under title XVI of the Social Security Act by reason of 
     disability for months beginning after 180 days after the date 
     of the enactment of this Act.
       (F) Transition rules for current beneficiaries.--In any 
     case in which an individual is eligible for supplemental 
     security income benefits under title XVI of the Social 
     Security Act by reason of disability, the determination of 
     disability was made by the Secretary of Health and Human 
     Services during or before the 180-day period following the 
     date of the enactment of this Act, and alcoholism or drug 
     addiction is a contributing factor material to the 
     Secretary's determination that the individual is disabled, 
     for purposes of section 1611(e)(3)(A)(v) of the Social 
     Security Act (added by the amendment made by subparagraph (A) 
     of this paragraph)--
       (i) the first month of such eligibility beginning after 180 
     days after the date of the enactment of this Act shall be 
     treated as the individual's first month of such eligibility; 
     and
       (ii) the Secretary shall notify the individual of the 
     requirements of the amendments made by this paragraph no 
     later than 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) 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. The Secretary may 
     include in such demonstration projects individuals who are 
     not described in either subparagraph (A) or subparagraph (B) 
     if the inclusion of such individuals is necessary to 
     determine the efficacy of various monitoring, referral, and 
     treatment approaches for individuals described in 
     subparagraph (A) or (B).
       (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. 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; and
       (v) social insurance (including health insurance); and
       (C) 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;
       (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 increase 
     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) alternative ways and providing retroactive supplemental 
     security income benefits to disabled children, including the 
     desirability and feasibility of conserving some portion of 
     such benefits to promote the long-term well-being of such 
     children;
       (E) the desirability and methods of increasing the extent 
     to which benefits are used in the effort to assist disabled 
     children in achieving independence and engaging in 
     substantial gainful activity;
       (F) the effects of the supplemental security income program 
     on disabled children and their families; and
       (G) 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. 203. 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 Secretary shall establish by regulation criteria 
     for time limits and other criteria related to individuals' 
     plans for achieving self-support, that take into account--
       ``(1) the length of time that the individual will need to 
     achieve the individual's employment goal (within such 
     reasonable period as the Secretary may establish); and
       ``(2) other factors determined by the Secretary to be 
     appropriate.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on January 1, 1995.

     SEC. 204. 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) For a period of not more than 1 year, 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 Secretary 
     that the absence of the individual from the United States 
     will be--
       ``(i) for not more than 1 year; and
       ``(ii) for the purpose of conducting studies as part of an 
     educational program that is--
       ``(I) designed to substantially enhance the ability of the 
     individual to engage in gainful employment;
       ``(II) sponsored by a school, college, or university in the 
     United States; and
       ``(III) not available to the individual in the United 
     States.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on January 1, 1995.

     SEC. 205. 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. 206. EXPANSION OF THE AUTHORITY OF THE SOCIAL SECURITY 
                   ADMINISTRATION TO PREVENT, DETECT, AND 
                   TERMINATE FRAUDULENT CLAIMS FOR OASDI AND SSI 
                   BENEFITS.

       (a) Prevention of Fraud by Translators of Foreign 
     Languages.--
       (1) OASDI programs.--Section 205(c) of the Social Security 
     Act (42 U.S.C. 405(c)) is amended--
       (A) by redesignating paragraph (8) as paragraph (9); and
       (B) by inserting after paragraph (7) the following:
       ``(8) A translation into English by a third party of a 
     statement made in a foreign language by an applicant for or 
     beneficiary of monthly insurance benefits under this title 
     shall not be regarded as reliable for any purpose under this 
     title 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) SSI program.--Section 1631(e) of such 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 for any purpose under this title 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.''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to translations made on or after October 1, 1994.
       (b) Civil Monetary Penalties, Assessments, and Exclusions 
     for Titles II and XVI.--
       (1) In general.--Title XI of the Social Security Act (42 
     U.S.C. 1301 et seq.) is amended by inserting after section 
     1128B the following:

     ``SEC. 1129. CIVIL MONETARY PENALTIES AND ASSESSMENTS FOR 
                   TITLES II AND XVI.

       ``(a)(1) 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 or the amount of--
       ``(A) monthly insurance benefits under title II, or
       ``(B) 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 or makes such a 
     statement with knowing disregard for the truth 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 Secretary may make a 
     determination in the same proceeding to exclude, as provided 
     in section 1128, such a person who is a medical provider or 
     physician 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 permanently or for such period as the Secretary 
     determines.
       ``(2) For purposes of this section, a material fact is one 
     which the Secretary may consider in evaluating whether an 
     applicant is entitled to benefits under title II or eligible 
     for benefits or payments under title XVI.
       ``(b)(1) The Secretary may initiate a proceeding to 
     determine whether to impose a civil money penalty or 
     assessment, or whether to recommend exclusion under 
     subsection (a) only as authorized by the Attorney General 
     pursuant to procedures agreed upon by the Secretary and the 
     Attorney General. The Secretary 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 Secretary 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 Secretary 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 or State 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, for failing to 
     defend an action, or for such 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 pursuant to subsection (a) the amount 
     or scope of any penalty or assessment, or whether to 
     recommend an exclusion, the Secretary 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 Secretary 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 Secretary'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 
     Secretary, and thereupon the Secretary 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 Secretary and enforcing the 
     same to the extent that such order is affirmed or modified. 
     No objection that has not been urged before the Secretary 
     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 Secretary 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 Secretary, the court may order such 
     additional evidence to be taken before the Secretary and to 
     be made a part of the record. The Secretary may modify such 
     findings as to the facts, or make new findings, by reason of 
     additional evidence so taken and filed, and the Secretary 
     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 the Secretary's 
     recommendations, if any, for the modification or setting 
     aside of the Secretary's original order.
       ``(3) Upon the filing of the record and the Secretary's 
     original or modified order with the court, 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 Secretary 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 Secretary;
       ``(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)(i) by decrease of any payment of monthly insurance 
     benefits under title II, notwithstanding section 207, or
       ``(ii) by decrease of any payment under title XVI for which 
     the person is eligible, notwithstanding section 207, as made 
     applicable to title XVI 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.
       ``(2) Amounts recovered under this section shall be 
     recovered by the Secretary and shall be disposed of as 
     follows:
       ``(A) In the case of amounts recovered arising out of a 
     determination relating to title II, the amounts shall be 
     transferred to the Managing Trustee of the Federal Old-Age 
     and Survivors Insurance Trust Fund or the Federal Disability 
     Insurance Trust Fund, as determined appropriate by the 
     Secretary, and such amounts shall be deposited by the 
     Managing Trustee into such Trust Fund.
       ``(B) In the case of amounts recovered arising out of a 
     determination relating to title XVI, the amounts shall be be 
     deposited by the Secretary into the general fund of the 
     Treasury as miscellaneous receipts.
       ``(f) A determination pursuant to subsection (a) by the 
     Secretary to impose a penalty or assessment, or to recommend 
     an exclusion 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 
     Secretary 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 or assessment imposed under this 
     section.
       ``(g) Whenever the Secretary's determination to impose a 
     penalty or assessment under this section with respect to a 
     medical provider or physician becomes final, the provisions 
     of section 1128A(h) shall apply.
       ``(h) Whenever the Secretary 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 Secretary 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 Secretary may delegate the authority granted by section 
     205(d) (as made applicable to this section) to the Inspector 
     General for purposes of any investigation under this section.
       ``(2) The Secretary may delegate authority granted under 
     this section to the Inspector General.
       ``(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 and assessments 
     under subsection (a), and for an exclusion under section 
     1128, 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 ``, 1128B, or 1129'';
       (B) in subsection (b)(8)(B)(ii), by inserting ``or 1129'' 
     after ``section 1128A''; and
       (C) in subsection (f)(3), by inserting ``, 1129,'' after 
     ``sections 1128A''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to conduct occurring on or after October 1, 1994.
       (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 
     representative 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 representative payee under section 
     1631(a)(2).''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to conduct occurring on or after October 1, 1994.
       (d) Authority to Redetermine Eligibility if Fraud is 
     Involved, and to Terminate Benefits if There is Insufficient 
     Reliable Evidence.--
       (1) OASDI programs.--Section 205 of the Social Security Act 
     (42 U.S.C. 405) is amended by adding at the end the 
     following:
       ``(u)(1)(A) The Secretary shall immediately redetermine the 
     entitlement of individuals to monthly insurance benefits 
     under this title if there is reason to believe that fraud or 
     similar fault 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 such action 
     by the Secretary with regard to beneficiaries in a particular 
     investigation would jeopardize the criminal prosecution of a 
     person involved in a suspected fraud.
       ``(B) When redetermining the entitlement, or making an 
     initial determination of entitlement, of an individual under 
     this title, the Secretary shall disregard any evidence if 
     there is reason to believe that fraud or similar fault was 
     involved in the providing of such evidence.
       ``(2) For purposes of paragraph (1), similar fault is 
     involved with respect to a determination if--
       ``(A) an incorrect or incomplete statement that is material 
     to the determination is knowingly made; or
       ``(B) information that is material to the determination is 
     knowingly concealed.
       ``(3) If, after redetermining pursuant to this subsection 
     the entitlement of an individual to monthly insurance 
     benefits, the Secretary determines that there is insufficient 
     evidence to support such entitlement, the Secretary may 
     terminate such entitlement and may treat benefits paid on the 
     basis of such insufficient evidence as overpayments.''.
       (2) SSI program.--Section 1631(e) of such Act (42 U.S.C. 
     1383(e)) is amended by adding at the end the following:
       ``(6)(A)(i) The Secretary shall immediately redetermine the 
     eligibility of an individual for benefits under this title if 
     there is reason to believe that fraud or similar fault 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 such action by the Secretary with 
     regard to recipients in a particular investigation would 
     jeopardize the criminal prosecution of a person involved in a 
     suspected fraud.
       ``(ii) When redetermining the eligibility, or making an 
     initial determination of eligibility, of an individual for 
     benefits under this title, the Secretary shall disregard any 
     evidence if there is reason to believe that fraud or similar 
     fault was involved in the providing of such evidence.
       ``(B) For purposes of subparagraph (A), similar fault is 
     involved with respect to a determination if--
       ``(i) an incorrect or incomplete statement that is material 
     to the determination is knowingly made; or
       ``(ii) information that is material to the determination is 
     knowingly concealed.
       ``(C) If, after redetermining the eligibility of an 
     individual for benefits under this title, the Secretary 
     determines that there is insufficient evidence to support 
     such eligibility, the Secretary may terminate such 
     eligibility and may treat benefits paid on the basis of such 
     insufficient evidence as overpayments.''.
       (3) Effective date.--The amendments made by this subsection 
     shall take effect on October 1, 1994, and shall apply to 
     determinations made before, on, or after such date.
       (e) Availability of Recipient Identifying Information From 
     the Inspector General.--
       (1) In general.--Section 1129 of the Social Security Act 
     (added by subsection (b) of this section) is amended by 
     adding at the end the following:
       ``(l) As soon as the Inspector General, Department of 
     Health and Human Services, has reason to believe that fraud 
     was involved in the application of an individual for monthly 
     insurance benefits under title II or for benefits under title 
     XVI, the Inspector General shall make available to the 
     Secretary information identifying the individual, 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 in a particular 
     investigation or redetermining the eligibility of the 
     individual 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 subsection (d)(2) of this 
     section, is amended by adding at the end the following:
       ``(7)(A) The Secretary shall request the Immigration and 
     Naturalization Service or the Centers for Disease Control to 
     provide the Secretary with whatever medical information, 
     identification information, and employment history either 
     such entity has with respect to any alien who has applied for 
     benefits under title XVI to the extent that the information 
     is relevant to any determination relating to eligibility for 
     such benefits under title XVI.
       ``(B) Subparagraph (A) shall not be construed to prevent 
     the Secretary from adjudicating the case before receiving 
     such information.''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall take effect on October 1, 1994.
       (g) Annual Reports on Reviews of OASDI and SSI Cases.--The 
     Secretary of Health and Human Services 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 extent to which the Secretary has exercised his 
     authority to review cases of entitlement to monthly insurance 
     benefits under title II of the Social Security Act and 
     supplemental security income cases under title XVI of such 
     Act, and the extent to which the cases reviewed were those 
     that involved a high likelihood or probability of fraud.

     SEC. 207. DISABILITY REVIEW REQUIRED FOR SSI RECIPIENTS WHO 
                   ARE 18 YEARS OF AGE.

       (a) Disability Review Requirement.--
       (1) In general.--The applicable State agency or the 
     Secretary of Health and Human Services (as may be 
     appropriate) shall redetermine the eligibility of a qualified 
     individual for supplemental security income benefits under 
     title XVI of the Social Security Act by reason of disability, 
     by applying the criteria used in determining eligibility for 
     such benefits of applicants who have attained 18 years of 
     age.
       (2) When conducted.--The redetermination required by 
     paragraph (1) with respect to a qualified individual shall be 
     conducted during the 1-year period that begins on the date 
     the qualified individual attains 18 years of age.
       (3) Minimum number of reviews.--The Secretary shall conduct 
     redeterminations under paragraph (1) with respect to not less 
     than \1/3\ of qualified individuals in each of fiscal years 
     1996, 1997, and 1998.
       (4) Qualified individual defined.--As used in this 
     paragraph, the term ``qualified individual'' means a 
     recipient of supplemental security income benefits under 
     title XVI of the Social Security Act by reason of disability 
     who attains 18 years of age in or after the 9th month after 
     the month in which this Act is enacted.
       (5) Substitute for a continuing disability review.--A 
     redetermination under paragraph (1) of this subsection shall 
     be considered a substitute for a review required under 
     section 1614(a)(3)(G) of the Social Security Act.
       (6) Sunset.--Paragraph (1) shall have no force or effect 
     after October 1, 1998.
       (b) Report to the Congress.--Not later than October 1, 
     1998, the Secretary of Health and Human Services shall 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 activities conducted under subsection (a).

     SEC. 208. CONTINUING DISABILITY REVIEWS.

       (a) Temporary Annual Minimum Number of Reviews.--During 
     each year of the 3-year period that begins on October 1, 
     1995, the Secretary of Health and Human Services shall apply 
     section 221(i) of the Social Security Act in making 
     disability determinations under title XVI of such Act with 
     respect to at least 100,000 recipients of supplemental 
     security income benefits under such title.
       (b) Report to the Congress.--Not later than October 1, 
     1998, the Secretary of Health and Human Services shall 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 activities conducted under subsection (a).

     SEC. 209. EXEMPTION FROM ADJUSTMENT IN PASS-ALONG 
                   REQUIREMENTS.

       (a) In General.--Section 1618(b) of the Social Security Act 
     (42 U.S.C. 1382g(b)) is amended--
       (1) by inserting ``(1)'' after ``(b)''; and
       (2) by adding at the end the following:
       ``(2) For purposes of determining under paragraph (1) 
     whether a State's expenditures for supplementary payments in 
     the 12-month period beginning on the effective date of any 
     increase in the level of supplemental security income 
     benefits are not less than the State's expenditures for such 
     payments in the preceding 12-month period, the Secretary, in 
     computing the State's expenditures, shall disregard, pursuant 
     to a 1-time election of the State, all expenditures by the 
     State for retroactive supplementary payments that are 
     required to be made in connection with the retroactive 
     supplemental security income benefits referred to in section 
     5041 of the Omnibus Budget Reconciliation Act of 1990.''.
       (b) Applicability.--The amendments made by subsection (a) 
     shall apply with respect to increases in the level of 
     supplemental security income benefits under title XVI of the 
     Social Security Act whether occurring before, on, or after 
     the date of the enactment of this Act.
             TITLE III--MISCELLANEOUS PROGRAM IMPROVEMENTS

     SEC. 301. 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. 302. GAO STUDY REGARDING TELEPHONE ACCESS TO LOCAL 
                   OFFICES OF THE SOCIAL SECURITY ADMINISTRATION.

       (a) Study.--The Comptroller General of the United States 
     shall conduct a study of telephone access to local offices of 
     the Social Security Administration.
       (b) Matters To Be Studied.--In conducting the study under 
     this section, the Comptroller General shall make an 
     independent assessment of the Social Security 
     Administration's use of innovative technology (including 
     attendant call and voice mail) to increase public telephone 
     access to local offices of the Administration. Such study 
     shall include--
       (1) an assessment of the aggregate impact of such 
     technology on public access to the local offices, and
       (2) a separate assessment of the impact of such technology 
     on public access to those local offices to which access was 
     restricted on October 1, 1989.
       (c) Report.--Not later than January 31, 1996, the 
     Comptroller General shall submit a report on the results of 
     the study conducted pursuant to this section to the Committee 
     on Ways and Means of the House of Representatives and the 
     Committee on Finance of the Senate.

     SEC. 303. 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 any calendar year commencing on or 
     after January 1, 1995, ending on or before December 31, 1999, 
     and the adjusted amount determined under section 218(c)(8)(B) 
     for any calendar year commencing on or after January 1, 2000, 
     with respect to service performed during such calendar 
     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 any calendar year commencing on or 
     after January 1, 1995, ending on or before December 31, 1999, 
     and the adjusted amount determined under section 218(c)(8)(B) 
     of the Social Security Act for any calendar year commencing 
     on or after January 1, 2000, with respect to service 
     performed during such calendar 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 any calendar year 
     commencing on or after January 1, 1995, ending on or before 
     December 31, 1999, and the adjusted amount determined under 
     section 218(c)(8)(B) for any calendar year commencing on or 
     after January 1, 2000, with respect to service performed 
     during such calendar 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 any calendar year commencing on or after January 1, 
     1995, ending on or before December 31, 1999, and the adjusted 
     amount determined under section 218(c)(8)(B) of the Social 
     Security Act for any calendar year commencing on or after 
     January 1, 2000, with respect to service performed during 
     such calendar 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 any calendar year 
     commencing on or after January 1, 1995, ending on or before 
     December 31, 1999, and the adjusted amount determined under 
     subparagraph (B) for any calendar year commencing on or after 
     January 1, 2000, with respect to service performed during 
     such calendar 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 1999, 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, 1997 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. 304. 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) Conforming Amendment.--Section 1140(a)(2) of such Act 
     (42 U.S.C. 1320b-10(a)(2)) is amended by striking 
     ``205(c)(2)(E)'' and inserting ``205(c)(2)(F)''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date of the enactment of this Act.

     SEC. 305. AUTHORIZATION FOR ALL STATES TO EXTEND COVERAGE TO 
                   STATE AND LOCAL POLICE OFFICERS AND 
                   FIREFIGHTERS 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. 306. 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 (prior to March 31, 1995) or the 
     Commissioner of Social Security (after March 30, 1995) 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. 307. 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 December 1994.

     SEC. 308. 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 
     307(a) of this Act) and section 215(d)(3) of such Act (as 
     amended by section 307(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 December 1994.

     SEC. 309. 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. 310. 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 December 1995.

     SEC. 311. AUTHORIZATION FOR DISCLOSURE OF SOCIAL SECURITY 
                   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. 312. MISUSE OF SYMBOLS, EMBLEMS, OR NAMES IN REFERENCE 
                   TO SOCIAL SECURITY ADMINISTRATION OR DEPARTMENT 
                   OF HEALTH AND HUMAN SERVICES.

       (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 or of 
     the Department of Health and Human Services 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 amended by section 304 and 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'', by striking ``or 
     of the Health Care Financing Administration'', and by 
     inserting ``or the Medicare card,'' after ``205(c)(2)(F)''.
       (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, and Penalties Related to Health 
     Care Financing Administration Deposited in the HI and SMI 
     Trust Funds.--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 
     (A) 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 Survivors Insurance Trust Fund, and (B) 
     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 Department of Health and 
     Human Services, such amounts shall be deposited into the 
     Federal Hospital Insurance Trust Fund or the Federal 
     Supplementary Medical Insurance Trust Fund, as 
     appropriate.''.
       (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 may be 
     enforced through the Office of the Inspector General of the 
     Department of Health and Human Services.''.
       (k) Reports.--
       (1) In general.--The Secretary of Health and Human Services 
     and the Commissioner of Social Security shall each submit to 
     the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate 3 
     reports on the operation of section 1140 of the Social 
     Security Act with respect to the Social Security 
     Administration or the Department of Health and Human Services 
     during the period covered by the report, which shall 
     specify--
       (A) the number of complaints of violations of such section 
     received by the Social Security Administration or the 
     Department of Health and Human Services during the period,
       (B) the number of cases in which the Social Security 
     Administration or the Department, during the period, sent a 
     notice of violation of such section requesting that an 
     individual cease activities in violation of such section,
       (C) the number of cases in which the Social Security 
     Administration or the Department formally proposed a civil 
     money penalty in a demand letter during the period,
       (D) the total amount of civil money penalties assessed by 
     the Social Security Administration or the Department under 
     this section during the period,
       (E) the number of requests for hearings filed during the 
     period by the Social Security Administration or the 
     Department pursuant to sections 1140(c)(1) and 1128A(c)(2) of 
     the Social Security Act,
       (F) the disposition during the period of hearings filed 
     pursuant to sections 1140(c)(1) and 1128A(c)(2) of the Social 
     Security Act, and
       (G) the total amount of civil money penalties collected 
     under this section and deposited into the Federal Old-Age and 
     Survivors Insurance Trust Fund or the Health Insurance and 
     Supplementary Medical Insurance Trust Funds, as applicable, 
     during the period.
       (2) When due.--The reports required by paragraph (1) shall 
     be submitted not later than December 1, 1995, not later than 
     December 1, 1997, and not later than December 1, 1999, 
     respectively.
       (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.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply with respect to 
     violations occurring after March 31, 1995.
       (2) Prohibition of misuse of department of the treasury 
     names, symbols, etc.--Subsection (l)(3) shall take effect on 
     the date of the enactment of this Act, and the amendments 
     made by paragraphs (1) and (2) of subsection (l) shall apply 
     with respect to violations occurring after such date.

     SEC. 313. 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. 314. 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. 315. 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. 316. 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. 317. 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. 318. 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. 319. COVERAGE UNDER FICA OF FEDERAL EMPLOYEES 
                   TRANSFERRED TEMPORARILY TO INTERNATIONAL 
                   ORGANIZATIONS.

       (a) Treatment 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. 320. 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.

       (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. 321. 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 determined 
     before any applicable reduction under section 1127(a).''.
       (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 subsection 
     shall take effect as if included in the provisions of the 
     Omnibus Budget Reconciliation Act of 1990 to which such 
     amendment relates, except that the amendments made by 
     paragraph (3)(B) shall apply with respect to favorable 
     judgments made after 180 days after the date of the enactment 
     of this Act.
       (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 paragraph (1) shall be effective 
     with respect to the determination of the contribution and 
     benefit base for years after 1994.
       (B) The amendment made by paragraph (2) shall be effective 
     with respect to the determination of the exempt amounts 
     applicable to any taxable year ending after 1994.
       (h) Technical Amendments to Title XVI.--(1) Section 1631 of 
     the Social Security Act (42 U.S.C. 1383) is amended--
       (A) in the 1st subsection (n), by striking ``subsection'' 
     and inserting ``title''; and
       (B) by redesignating the 2nd subsection (n) as subsection 
     (o).
       (2) Section 1613(a) of such Act (42 U.S.C. 1382b(a)) is 
     amended--
       (A) by striking ``and'' at the end of paragraph (9);
       (B) by striking the period at the end of the 1st paragraph 
     (10) and inserting ``; and''; and
       (C) by redesignating the 2nd paragraph (10) as paragraph 
     (11).
       (3) Effective date.--The amendments made by this subsection 
     shall take effect on the date of the enactment of this Act.
       And the Senate agree to the same.
     Sam Gibbons,
     Dan Rostenkowski,
     J.J. Pickle,
     Andrew Jacobs, Jr.,
     Harold Ford,
     Bill Archer,
     Jim Bunning,
     Rick Santorum,
                                Managers on the Part of the House.

     Daniel P. Moynihan,
     Max Baucus,
     John Breaux,
     Bob Packwood,
     Bob Dole,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to 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, submit the following joint 
     statement to the House and the Senate in explanation of the 
     effect of the action agreed upon by the managers and 
     recommended in the accompanying conference report:
       The Senate amendment struck all of the House bill after the 
     enacting clause and inserted a substitute text.
       The House recedes from its disagreement to the amendment of 
     the Senate with an amendment that is a substitute for the 
     House bill and the Senate amendment. The differences between 
     the House bill, the Senate amendment, and the substitute 
     agreed to in conference are noted below, except for clerical 
     corrections, conforming changes made necessary by agreements 
     reached by the conferees, and minor drafting and clerical 
     changes.


     1. Establishment of the Social Security Administration as an 
                           Independent Agency

(Sec. 101-110 of the House bill, secs. 101-204 of the Senate amendment, 
             and secs. 101-110 of the conference agreement)

                          a. Status of Agency

     Present law
       The Social Security Administration (SSA) is a component of 
     the Department of Health and Human Services (HHS).
     House bill
       SSA would be made an independent agency in the executive 
     branch of the Federal government, with responsibility for 
     administration of the Old-Age, Survivors, and Disability 
     Insurance (OASDI) and Supplemental Security Income (SSI) 
     programs.
     Senate amendment
       Same as House provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment, with amendments providing that SSA would 
     continue to perform its current functions in administering 
     the Coal Industry Retirees Health Benefits Act and Part B of 
     the Black Lung Benefits Act.

                  b. Agency Leadership and Management

     Present law
       The Secretary of HHS has responsibility for administration 
     of the OASDI and SSI programs. Administration of these 
     programs has been delegated to the Commissioner of Social 
     Security. The Commissioner is appointed by the President with 
     the advice and consent of the Senate, but reports to the 
     Secretary.
     House bill
       SSA would be governed by a three-member, full-time Board, 
     appointed by the President with the advice and consent of the 
     Senate. The Board members would serve 6-year terms, with no 
     more than 2 members being from the same political party. 
     Board members would be chosen on the basis of their 
     integrity, impartiality, and good judgment, and would be 
     individuals who, by reason of education, experience, and 
     attainments, are exceptionally qualified to perform the 
     duties of the Board. Board members could be removed from 
     office by the President only pursuant to a finding of neglect 
     of duty or malfeasance in office. The terms of the first 
     members would expire after two, four and six years.
       Recommendations for persons to serve on the Board would be 
     made by the Chairman of the House Committee on Ways and Means 
     and the Senate Committee on Finance. A member could, at the 
     request of the President, serve for up to a year after the 
     member's term expires until a successor has taken office. A 
     member could be appointed for additional terms.
       The President would appoint one of the members to be a 
     chairperson of the Board for a 4-year term. The chairperson 
     or two members could call a meeting of the Board with any two 
     members constituting a quorum. Any member alone would be 
     permitted to hold a hearing.
       Each member of the Board would be compensated at the rate 
     provided in level II of the Executive Schedule. No member 
     would be permitted to engage in any other business, vocation, 
     profession, or employment.
       The Board would:
       Govern OASDI and SSI by regulation;
       Establish the agency and oversee its efficient and 
     effective operation;
       Establish policy and devise long-range plans for the 
     agency;
       Appoint an Executive Director to act as the agency's chief 
     operating officer;
       Constitute three members of a new seven-member Board of 
     Trustees of the Social Security Trust Funds, with the 
     chairperson of the agency's Board serving as chairperson of 
     the Board of Trustees (the Secretary of Labor would be 
     dropped as a member of the Board of Trustees);
       Prepare an annual budget, which would be presented by the 
     President to Congress without revision, together with the 
     President's annual budget for the agency;
       Study and make recommendations to the Congress and 
     President on the most effective methods of providing economic 
     security through social insurance, SSI, and related programs, 
     as well as on matters related to OASDI and SSI 
     administration;
       Provide the Congress and President with ongoing actuarial 
     and other analyses; and
       Conduct policy analysis and research.
       The Board would be authorized to prescribe rules and 
     regulations. It would also be authorized to establish, alter, 
     consolidate, or discontinue organizational units and 
     components of the agency (other than those provided by 
     statute). Further, it would be permitted to assign duties and 
     delegate (or authorize successive redelegations of) authority 
     to act and to render decisions to such officers and employees 
     as it deems necessary.
     Senate amendment
       SSA would be governed by a Commissioner appointed by the 
     President, with the advice and consent of the Senate, for a 
     4-year term coinciding with the term of the President (or 
     until the appointment of a successor). The Commissioner would 
     be compensated at the rate for level I of the Executive 
     Schedule (equivalent to Cabinet officer pay). The 
     Commissioner would be responsible for the exercise of all 
     powers and the discharge of all duties of SSA, have authority 
     and control over all personnel and activities of the agency, 
     and serve as a member of the 5-member Board of Trustees.
       The President would be required to appoint a Commissioner 
     within 60 days of the enactment. Upon such appointment and 
     confirmation by the Senate, the Commissioner appointed under 
     this title would assume the duties of the HHS Commissioner of 
     Social Security until SSA is established as an independent 
     agency.
       The Commissioner would be authorized to prescribe rules and 
     regulations; establish, alter, consolidate, or discontinue 
     organizational units and components of the agency (except for 
     those prescribed by law); and assign duties, and delegate, or 
     authorize successive redelegations of, authority to act and 
     to render decisions, to such officers and employees as the 
     Commissioner may find necessary.
       The Commissioner and the Secretary of Health and Human 
     Services would be directed to consult with one another on an 
     on-going basis to assure: (1) the coordination of the Social 
     Security, SSI, and Medicare and Medicaid programs and (2) 
     that adequate information concerning Medicare and Medicaid 
     benefits would be available to the public.
     Conference agreement
       The conference agreement follows the Senate amendment, 
     modified to provide that the Commissioner would serve a fixed 
     six-year term, except that the initial term of office would 
     terminate January 19, 2001. As in the case of the Board 
     members in the House bill, the Commissioner could be removed 
     from office by the President only pursuant to a finding of 
     neglect of duty or malfeasance in office.
       In providing that a single administrator, rather than a 
     bipartisan board, will head the independent agency, the 
     conferees place high priority on management efficiency, which 
     they see as essential in enabling the independent SSA to 
     address the problems that confront it. At the same time, the 
     conferees are concerned by the high rate of turnover, and 
     resulting instability, that has characterized SSA's top 
     management in recent years. A number of problems in service 
     delivery associated with this instability has been documented 
     in studies by the General Accounting Office and in hearings 
     by the House Committee on Ways and Means and the Senate 
     Committee on Finance. A description of these studies and 
     hearings is contained in both Committees' reports on this 
     legislation.
       The conferees expect that the key features of SSA's 
     leadership structure as established in the conference 
     agreement--i.e., independent status, a six-year term and the 
     limitation on removal by the President, and a bipartisan 
     advisory board--will be effective in assuring that policy 
     errors resulting from inappropriate influence from outside 
     the agency such as those occurring in the early 1980s do not 
     recur in the future.

                         (1) Board of Trustees

     Present law
       The Board of Trustees of the Federal Old-Age and Survivors 
     Insurance and Disability Insurance Trust Funds consists of 
     the Secretary of the Treasury, the Secretary of Labor, the 
     Secretary of Health and Human Services, and two public 
     trustees. The Commissioner of Social Security serves as the 
     Secretary of the Board.
     House bill
       The provision would expand the Board of Trustees and alter 
     its membership. As restructured, the Board would consist of 
     the 3 members of the independent agency's board of directors, 
     the Secretary of the Treasury, the Secretary of Health and 
     Human Services, and the two public trustees. the Secretary of 
     Labor would be dropped from the Board. Also, the chairperson 
     of SSA's board of directors would serve as the chairperson of 
     the Board of Trustees. The Executive Director would serve as 
     the Secretary of the Board.
     Senate amendment
       The Commissioner of the independent agency would serve as a 
     member of the Board of Trustees, and the Secretary of Labor 
     would be dropped from the Board. The Deputy Commissioner 
     would serve as the Secretary of the Board.
     Conference agreement
       The conference agreement follows the Senate amendment, with 
     an amendment providing that the Secretary of Labor would 
     continue to serve as a member of the Board.

                             (2) SSA Budget

     Present law
       SSA's annual budget request is submitted to Congress by the 
     President, as part of his proposal for the overall budget for 
     the executive branch.
     House bill
       SSA's board of directors would be required to prepare an 
     annual budget for the agency, which would be presented by the 
     President to Congress without revision, together with the 
     President's annual budget for the agency.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill, except 
     that the budget would be prepared and forwarded to the 
     President by the Commissioner, rather than the Board.

                           (3) Advisory Board

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       A 7-member part-time Advisory Board would be appointed for 
     6-year terms, made up as follows: 3 appointed by the 
     President (no more than 1 from the same political party); 2 
     each (no more than 1 from the same political party) by the 
     Speaker of the House (in consultation with the Chairman and 
     Ranking Minority Member of the Committee on Ways and Means) 
     and the President pro tempore of the Senate (in consultation 
     with the Chairman and Ranking Minority member of the 
     Committee on Finance). Presidential appointees would be 
     subject to Senate confirmation. Board members would serve 
     staggered terms. The chairman of the Board would be appointed 
     by the President for a 4-year term, coincident with the term 
     of the President, or until the designation of a successor. 
     The Board would meet at least 6 times each year and generally 
     would be responsible for giving advice on policies related to 
     the OASDI and SSI programs.
       Compensation of members would be set at a rate equal to 25 
     percent of the rate for level III of the Executive Schedule 
     (in addition, on meeting days compensation would be 
     equivalent to that of the daily rate of level III of the 
     Executive Schedule). Other benefits (except for health 
     benefits) would not accrue. The Board would be required to 
     appoint a staff director (paid at a rate equivalent to a rate 
     for the Senior Executive Service) and would be authorized to 
     hire necessary staff. The Board would be exempt from the 
     provisions of the Federal Advisory Committee Act.
       Specific functions of the Board would include:
       Analyzing the nation's retirement and disability system and 
     making recommendations with respect to how the OASDI program 
     and SSI program, supported by other public and private 
     systems, can most effectively assure economic security;
       Studying and making recommendations relating to the 
     coordination of programs that provide health security with 
     the OASDI and SSI programs and with other public and private 
     systems;
       Making recommendations to the President and to the Congress 
     with respect to policies that will ensure the solvency of the 
     OASDI program, both in the short-term and long-term;
       Making recommendations to the President of candidates to 
     consider in selecting nominees for the position of 
     Commissioner and Deputy Commissioner;
       Reviewing and assessing the quality of service that the 
     Administration provides to the public;
       Reviewing and making recommendations with respect to 
     policies and regulations regarding the OASDI and SSI 
     programs;
       Increasing public understanding of the Social Security 
     system;
       In consultation with the Commissioner, reviewing the 
     development and implementation of a long-range research and 
     program evaluation plan for the Administration;
       Reviewing and assessing any major studies of Social 
     Security that may come to the attention of the Board; and
       Conducting such other reviews and assessments as the Board 
     determines to the appropriate.
     Conference agreement
       The conference agreement generally follows the Senate 
     amendment, except that Advisory Board members would serve 
     fixed terms, meet at least four times a year (four members, 
     not more than three from the same political party, would 
     constitute a quorum), and serve without compensation, except 
     that, 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.
       Specific functions of the Board include:
       Analyzing the nation's retirement and disability systems 
     and making recommendations with respect to how the OASDI 
     program and SSI program, supported by other public and 
     private systems, can most effectively assure economic 
     security;
       Studying and making recommendations relating to the 
     coordination of programs that provide health security with 
     the OASDI and SSI programs and with other public and private 
     systems;
       Making recommendations to the President and to the Congress 
     with respect to policies that will ensure the solvency of the 
     OASDI program, both in the short-term and the long term;
       Making recommendations with respect to the quality of 
     service that the Administration provides to the public;
        Making recommendations with respect to policies and 
     regulations regarding the OASDI and SSI programs;
       Increasing public understanding of the social security 
     system;
       Making recommendations with respect to a long-range 
     research and program evaluation plan for the Administration;
       Reviewing and assessing any major studies of social 
     security that may come to the attention of the Board; and
       Making recommendations with respect to such other matters 
     as the Board determines to be appropriate.
       In general, it is expected that the scope of the Advisory 
     Board would be broadly focused, as indicated by its statutory 
     mandate. This would be in contrast to the focus of recent 
     Advisory Councils, which have tended to focus on specific 
     aspects of the program. While the Advisory Board is required 
     to review and assess the quality of service to the public 
     provided by the Administration, the conferees expect that the 
     performance of this or any other duty shall not serve as a 
     basis for the Advisory Board to become involved in the day-
     to-day operation or management of the agency. Moreover, the 
     conferees do not see the Board's role in evaluating SSA's 
     policies and regulations as extending to the Board any 
     special status with respect to the requirements and 
     procedures related to the Administrative Procedures Act.
       While the Board will appoint a staff director and hire 
     required clerical support personnel, any additional staff 
     required by the Board will be provided by the Commissioner of 
     Social Security, who will detail employees to the Board, as 
     agreed by the Commissioner and the Board. It is the intention 
     of the conferees that the Board's staff director and clerical 
     support staff not fall under the cap imposed by the 
     conference agreement on positions that may be exempted from 
     the competitive service at SSA.
       To carry out its duties, the Advisory Board must have 
     access to the records of the Social Security Administration. 
     Therefore, it is expected that SSA will furnish information 
     requested by the Advisory Board that, in the Board's 
     judgment, is required for the performance of its duties.
       The conferees believe that it is important to emphasize 
     that the Board is advisory in nature, and that its members 
     will meet on a part-time basis rather than serve as a 
     standing body. It is expected that the Commissioner will 
     consider the advice of the Board when formulating agency 
     policy. The conferees anticipate that the Board will be 
     effective in enhancing public confidence in the Social 
     Security system. They believe that the Board's independent 
     status and bipartisan membership make it especially well-
     suited for this important task.

                         (4) Executive Director

     Present law
       No provision.
     House bill
       An Executive Director would be appointed by the Board to 
     serve as the agency's chief operating officer for a 4-year 
     term. The individual would be permitted to serve up to one 
     additional year until a successor had taken office (at the 
     request of the chairperson of the Board). The Board would be 
     permitted to appoint the Executive Director for additional 
     terms. An Executive Director could be removed from office 
     before completion of his or her term only for cause found by 
     the Board. Compensation would be set at the rate provided in 
     level II of the Executive Schedule.
       The Executive Director would:
       Be the chief operating officer responsible for 
     administration;
       Maintain an efficient and effective administrative 
     structure;
       Implement the long-term plans of the Board;
       Report annually to the Board on the program costs of OASDI 
     and SSI; make annual budgetary recommendations for the 
     administrative costs of the agency and defend such 
     recommendations before the board;
       Advise the Board and Congress of effects on administration 
     of proposed legislative changes;
       Serve as Secretary of the Board of Trustees (for OASDI);
       Report to the Board in December of each year, for 
     transmittal to Congress; on administrative endeavors and 
     accomplishments; and
       Carry out any additional duties assigned by the Board.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the Senate amendment 
     (i.e., no provision).

               c. Deputy Commissioner of Social Security

     Present law
       Under current SSA practice, there are six deputy 
     commissioners (for operations; programs; finance, assessment 
     and management; policy and external affairs; systems; and 
     human resources). None of these is a statutory position. In 
     addition, a non-statutory Principal Deputy Commissioner is 
     designated to serve as Acting Commissioner in the absence of 
     the Commissioner.
     House bill
       A Deputy Director of Social Security would be appointed by, 
     and serve at the pleasure of, the Executive Director.
       The Deputy Director would perform such duties and exercise 
     such powers as are assigned by the Executive Director, and 
     serve as Acting Executive Director during the absence or 
     disability of the Executive Director. The Deputy Director 
     would also serve as Acting Executive Director in the event of 
     a vacancy in the office of Executive Director unless the 
     Board designates another official to fill the post. He or she 
     would be compensated at the rate provided in level III of the 
     Executive Schedule.
     Senate amendment
       A Deputy Commissioner would be appointed by the President, 
     with the advice and consent of the Senate, for a 4-year term 
     coincident with the term of the Commissioner or until 
     appointment of a qualified successor.
       The Deputy Commissioner would perform such duties and 
     exercise such powers as are assigned by the Commissioner, and 
     serve as Acting Commissioner during the absence or disability 
     of the Commissioner (or vacancy of the office) unless the 
     President designates someone else. He or she would be 
     compensated at the rate provided for level II of the 
     Executive Schedule. In addition, the Deputy Commissioner 
     would serve as the Secretary of the Board of Trustees of the 
     OASDI Trust Funds.
     Conference agreement
       The conference agreement follows the Senate amendment, 
     except that the Deputy Commissioner would serve a six-year, 
     rather than a four-year, term. The Deputy Commissioner's term 
     would coincide with that of the Commissioner.

                           d. General Counsel

     Present law
       SSA receives legal services from the Office of General 
     Counsel of HHS through a component headed by a Chief Counsel 
     for Social Security.
     House bill
       A General Counsel would be appointed by and serve at the 
     pleasure of the Board as SSA's principal legal officer. He or 
     she would be compensated at the rate provided in level IV of 
     the Executive Schedule.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the Senate amendment 
     (i.e., no provision). The conferees anticipate that the 
     agency officers will include a General Counsel.

                          e. Inspector General

     Present law
       The Inspector General of HHS is responsible for oversight 
     of SSA
     House bill
       An Office of Inspector General would be created within SSA, 
     to be headed by an Inspector General appointed in accordance 
     with the Inspector General Act of 1978. He or she would be 
     compensated at the rate provided in level IV of the Executive 
     Schedule.
     Senate amendment
       The Inspector General Act of 1978 would be amended to 
     authorize establishment, under that act, of an Inspector 
     General of SSA.
     Conference agreement
       The conference agreement follows the Senate amendment, with 
     an amendment providing that the Inspector General would be 
     compensated at the rate provided in level IV of the Executive 
     Schedule.
       In addition, the conference agreement provides the 
     Commissioner of the independent agency with authority to 
     appoint an interim Inspector General to serve for up to 60 
     days. If the Commissioner does not make this appointment, the 
     Inspector General of HHS may, if requested by the 
     Commissioner, serve as SSA's Inspector General (while 
     continuing to serve as the Inspector General of HHS) until an 
     Inspector General is appointed for the independent agency.
       The bill does not establish in the Administration any 
     positions other than the Commissioner, Deputy Commissioner, 
     Inspector General and Chief Financial Officer. The conferees 
     believe that it is preferable to give the Commissioner the 
     authority to determine the most efficient administrative 
     organization for an independent SSA. However, the conferees 
     believe that an essential element in any administrative 
     organization for SSA is the position of Chief Actuary. While 
     such a position is not mandated legislatively, it is expected 
     that SSA will continue to have a Chief Actuary, and that the 
     Chief Actuary will remain available to consult with the 
     Chairman of the Senate Committee on Finance and the Chairman 
     of the House Ways and Means Committee.
       The conferees wish to emphasize the very important role of 
     the Office of the Actuary in assessing the financial 
     condition of the Social Security trust funds and in 
     developing estimates of the financial effects of potential 
     legislative and administrative changes in the Social Security 
     program. The Office of the Actuary has a unique role within 
     the agency in that it serves both the Administration and the 
     Congress. While the conferees expect that the Chief Actuary 
     will report to the Commissioner, this office often must work 
     with the committees of jurisdiction in the development of 
     legislation.
       Beginning with the appointment of the first Chief Actuary 
     in 1936, the tradition was for a close and confidential 
     working relationship between the individual who held that 
     office and the committees of jurisdiction in the Congress, a 
     relationship which the Committees value highly. It is 
     important to emphasize that both the Senate Committee on 
     Finance and the House Committee on Ways and Means rely on 
     their ability to seek estimates on a confidential basis from 
     the Chief Actuary, especially when developing new 
     legislation. Thus, the independence of the Office of the 
     Chief Actuary with respect to providing assistance to the 
     Congress is vital in maintaining a trusting and useful 
     relationship.
       The conferees believe that it is important for the Office 
     of the Chief Actuary to receive adequate staffing and support 
     from the agency. In this regard, the conferees are concerned 
     that fewer actuarial studies and notes have been published in 
     recent years and that various informal reports and actuarial 
     memoranda that were available in the past are no longer 
     circulated. The conferees consider independent analyses by 
     the Office of the Chief Actuary to be consistent with the 
     general role and responsibilities of the actuarial 
     profession, and in the past have found these analyses to be 
     very helpful in understanding the factors underlying 
     estimates and trends in the Social Security program.
       With respect to adequate staffing, the conferees wish to 
     note that it is essential that the strength of the Office of 
     the Actuary be maintained. The conferees strongly urge that 
     the actuarial staff at SSA be enhanced on an ongoing basis. 
     Toward that end, the conferees believe that, in formulating a 
     comprehensive workforce plan, the Commissioner of Social 
     Security should carefully evaluate the needs of the Office of 
     the Actuary and consider the need for additional Senior 
     Executive Service positions in this office.
       Although the conferees have not legislatively established a 
     position of Chief Actuary in the independent agency, the 
     conferees recognize the important role of the Office of the 
     Chief Actuary and expect that in the independent SSA the 
     office will be permitted to function with a high degree of 
     independence and professionalism.

                       f. Chief Financial Officer

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       A Chief Financial Officer would be appointed by the 
     Commissioner in accordance with amendments to Title 31 of the 
     U.S. Code made by the Chief Financial Officers Act of 1990.
     Conference agreement
       The conference agreement follows the Senate Amendment.

                        g. Beneficiary Ombudsman

     Present law
       No formal position of this nature exists within SSA.
     House bill
       An Office of Beneficiary Ombudsman, headed by a beneficiary 
     ombudsman appointed by the Board, would be created within 
     SSA. The term of office would be 5 years, except for the 
     first ombudsman whose term would end September 30, 2000. The 
     ombudsman would be permitted to serve up to one additional 
     year until a successor had taken office (at the request of 
     the chairperson of the Board), and could be appointed for 
     additional terms. The ombudsman could be removed from office 
     before completion of his or her term only for cause found by 
     the Board. Compensation would be set at the rate provided in 
     level V of the Executive Schedule.
       The beneficiary ombudsman would:
       Represent the interests and concerns of program 
     beneficiaries within SSA's decision-making process;
       Review SSA's policies and procedures for possible adverse 
     effects on beneficiaries;
       Recommend within SSA's decision-making process changes in 
     policies which have caused problems for beneficiaries;
       Help resolve problems for individual beneficiaries in 
     unusual or difficult circumstances, as determined by the 
     Administration; and
       Represent the views of beneficiaries within SSA's decision-
     making process in the design of forms and issuance of 
     instructions.
       The Board would assure that the Office of Beneficiary 
     Ombudsman is sufficiently staffed in regional offices, 
     program centers, and the central office.
       The annual report of the Board would include a description 
     of the activities of the beneficiary ombudsman.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the Senate amendment 
     (i.e., no provision).

              h. Office of Chief Administrative Law Judge

     Present law
       The Social Security Act requires SSA to conduct hearings to 
     consider appeals of SSA decisions by beneficiaries and 
     applicants for benefits. These hearings are conducted by 
     administrative law judges (ALJs). Although not required by 
     law, the agency follows the procedures of the Administrative 
     Procedures Act (APA) with respect to the appointment of ALJs 
     and the conduct of hearings. The ALJs are located 
     organizationally within the Office of Hearings and Appeals, 
     headed by an associate commissioner who reports to the deputy 
     commissioner for programs.
     House bill
       An Office of Chief Administrative Law Judge, headed by a 
     chief ALJ appointed by the Board, would be created within SSA 
     to administer the affairs of SSA's ALJs in a manner so as to 
     ensure that hearings and other business are conducted by the 
     ALJs in accordance with applicable law and regulations. The 
     chief ALJ would report directly to the Board.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the Senate amendment 
     (i.e., no provision).

                i. Interim Authority of the Commissioner

     Present law
       No provision.
     House bill
       The President would be required to nominate appointments to 
     the Board not later than April 1, 1995. If all members of the 
     Board are not in office by October 1, 1995, the person then 
     serving as Commissioner of Social Security would continue to 
     serve as head of SSA within HHS, and serve as the head of the 
     newly-established SSA, assuming the powers and duties of the 
     Board and Executive Director.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement generally follows the House bill 
     by providing that the existing Commissioner of Social 
     Security in the Department of HHS would continue to serve in 
     that post until a Commissioner is nominated by the President 
     pursuant to this statute and is confirmed by the Senate. 
     Nomination by the President must occur within 60 days of 
     enactment. Upon confirmation by the Senate (whether before or 
     after the general effective date of this statute), the 
     President's nominee would assume the position of Commissioner 
     of Social Security.
       In the event that, as of March 31, 1995, the President has 
     not nominated an individual for appointment to the Office of 
     Commissioner of Social Security, the individual serving as 
     Commissioner of Social Security in the Department of Health 
     and Human Services shall become the Acting Commissioner of 
     Social Security in the independent SSA.

 j. Personnel; Budgetary Matters; Facilities and Procurement; Seal of 
                                 Office

            (1) Appointment of Employees by the Commissioner

     Present law
       No provision.
     House bill
       The Board would appoint additional officers and employees 
     as it deems necessary (with compensation fixed in accordance 
     with title 5 of the U.S. Code, except as otherwise provided 
     by law), and could procure services of experts and 
     consultants.
     Senate amendment
       Identical provision.
     Conference agreement
       The conference agreement follows the House bill and the 
     Senate amendment.

       (2) Allotment of Senior Executive Service (SES) Employees

     Present law
       No provision.
     House bill
       The Director of the Office of Personnel Management (OPM) 
     would be required to give SSA an allotment of Senior 
     Executive Service (SES) positions that exceeds the number 
     authorized for SSA immediately before enactment of this Act 
     to the extent a larger number is specified in a comprehensive 
     work plan developed by the Board. The total number of such 
     positions could not be reduced at any time below the number 
     SSA held immediately before enactment of this Act.
     Senate amendment
       The Senate amendment includes the same provision, except 
     that the number of SES positions allotted to SSA must be 
     ``substantially'' greater than the number allotted to SSA 
     before enactment of this Act.
     Conference agreement
       The conference agreement follows the Senate amendment, with 
     an amendment requiring the Director of OPM to inform the 
     Committee on Ways and Means and the Committee on Finance of 
     the number of SES positions allotted to SSA within 60 days of 
     the transmittal of the comprehensive work plan to the 
     Director of OPM.
       In agreeing to this provision, the conferees wish to note 
     that, at present, the number of SES positions in SSA is low 
     in proportion to the agency's responsibilities and the size 
     of the agency's staff. The conferees expect that SSA's 
     allotment will increase as an independent agency, 
     commensurate with the agency's increased stature and 
     responsibilities.

                     (3) Executive Level Positions

     Present law
       No provision.
     House bill
       In addition to the 8 Executive Schedule positions 
     established by this Act, SSA also would be authorized 6 
     positions at level IV and 6 positions at level V of the 
     Executive Schedule.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the Senate amendment 
     (i.e., no provision).

          (4) Positions Exempted From the Competitive Service

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       The number of positions which may be excepted from the 
     competitive service because of their confidential or policy-
     determining character could not exceed the equivalent of 10 
     full-time positions.
     Conference agreement
       The conference agreement generally follows the Senate 
     amendment, except that the limit would be set at 20 and would 
     apply only to non-career Senior Executive Service (SES) and 
     schedule C positions. The four SSA positions authorized by 
     this statute--Commissioner, Deputy Commissioner, Inspector 
     General, and Chief Financial Officer--would not be counted 
     toward the limit, nor would the staff hired by the Social 
     Security Advisory Board.

               (5) Workforce Plan; Biennial Appropriation

     Present law
       No provision.
     House bill
       Appropriation requests for SSA staffing and personnel would 
     be based upon a comprehensive workforce plan, established and 
     revised from time to time by the Board.
     Senate amendment
       The Senate amendment includes a similar provision, except 
     that the plan would be established by the Commissioner and 
     appropriations would be authorized to be made on a biennial 
     basis.
     Conference agreement
       The conference agreement follows the Senate amendment.

                         (6) Contingency Funds

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       Appropriated contingency funds would be apportioned upon 
     the occurrence of the stipulated contingency, as determined 
     by the Commissioner and reported to the Congress.
     Conference agreement
       The conference agreement follows the House bill (i.e., no 
     provision).

                           (7) Seal of Office

     Present law
       No provision.
     House bill
       The Board would create a Seal of Office for SSA, and 
     judicial notice would be taken of it.
     Senate amendment
       The Commissioner would create a Seal of Office for SSA, and 
     judicial notice would be taken of it.
     Conference agreement
       The conference agreement follows the Senate amendment.

                  k. Transfers and Transitional Rules

                  (1) Transfers of Functions and Staff

     Present law
       No provision.
     House bill
       In consultation with the Secretary of HHS, the Board would 
     determine appropriate allocations of personnel and assets be 
     transferred from HHS to SSA. In addition, there would be 
     transferred such number of ALJs as are necessary to carry out 
     the functions transferred by this Act (as determined by the 
     Board in consultation with the Secretary).
     Senate amendment
       All functions, assets and personnel related to the 
     administration of Social Security programs would be 
     transferred from HHS to SSA. Transfers include all personnel 
     employed in connection with the functions transferred to SSA 
     and the assets, liabilities, contracts, property, records and 
     unexpended balance of appropriations, authorizations, 
     allocations, or other funds employed, held, or used in 
     connection with these functions.
     Conference agreement
       Under the conference agreement generally follows the Senate 
     amendment, with an amendment providing that the Commissioner 
     and the Secretary will enter into a written interagency 
     transfer arrangement identifying the personnel and resources 
     to be transferred to SSA pursuant to this provision. The 
     Commissioner and the Secretary will also identify support 
     functions which are to be transferred--i.e., payroll, legal, 
     and audit functions.
       Under the conference agreement, SSA will continue to 
     perform its current functions in administering the Medicare 
     and Medicaid programs, including the adjudication of Medicare 
     appeals, until such time as the Secretary and the 
     Commissioner agree to a different arrangement. While the 
     Secretary will maintain the ultimate authority for appeal 
     decisions, SSA's ALJ corps will conduct appeal hearings until 
     such time as the Secretary and the Commissioner agree to 
     separate the functions.
       The conferees urge the Secretary and the Commissioner to 
     make a joint examination of the most approriate methodology 
     which could be used to determine the costs to be borne by the 
     Medicare trust funds for Medicare-related functions performed 
     by SSA. The conferees request that the Secretary and the 
     Commissioner report their joint findings to the Committee on 
     Ways and Means and Committee on Finance within 36 months.

           (2) Terminate 6 Executive Level IV and V Positions

     Present law
       No provision.
     House bill
       The Secretary of HHS shall terminate 6 positions in the 
     Department of HHS placed in level IV and 6 positions placed 
     in level V of the Executive Schedule other than positions 
     required by law.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows Senate amendment (i.e., no 
     provision).

         (3) Employees Performing SSA Work on Date of Transfer

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       HHS employees who are employed on the date of enactment of 
     this Act, solely in connection with functions transferred by 
     this title to SSA, and who are so employed on the day before 
     the date SSA is established as an independent agency, shall 
     be transferred from HHS to SSA.
       HHS employees who are not employed on the date of the 
     enactment of this Act in connection with functions 
     transferred to SSA, but who are so employed on the day before 
     SSA is established as an independent agency, may be 
     transferred from HHS to SSA by the Commissioner, after 
     consulting with the Secretary of HHS, if the Commissioner 
     determines such transfer to be appropriate.
     Conference agreement
       The conference agreement follows the House bill (i.e., no 
     provision).

                         (4) Funds Transferred

     Present law
       No provision.
     House bill
       Funds available to any official or component of HHS whose 
     functions are transferred to the Commissioner of Social 
     Security or the independent SSA may, with the approval of the 
     Director of the Office of Management and Budget, be used to 
     pay compensation of any officers appointed during the 
     transition until funds for that purpose are otherwise 
     available.
     Senate amendment
       Same as House provision.
     Conference agreement
       The conference agreement follows the House bill and Senate 
     amendment.

    (5) Transfer of Existing Orders, Determinations, Contracts, etc.

     Present law
       No provision.
     House bill
       All orders, determinations, rules, regulations, collective 
     bargaining agreements, recognitions of labor organizations, 
     certificates, licenses, and privileges in effect under the 
     authority of the Secretary of HHS at the time of the 
     transition would continue under the independent agency until 
     their expiration or modification by the Board in accordance 
     with law. Further, the change would not alter any pending 
     proceeding before the Secretary, nor any suit nor penalty, 
     except that such proceedings would continue before the Board.
     Senate amendment
       All orders, rules, regulations, determinations, contracts, 
     collective bargaining agreements (including ongoing 
     negotiations), recognitions of labor organizations, 
     certificates, licenses and privileges in effect under the 
     authority of the Secretary of HHS at the time of the 
     transition would continue under the authority of the 
     independent SSA until modified or terminated by the 
     Commissioner. Suits and penalties commenced prior to 
     enactment would also continue. Collective bargaining 
     agreements would remain in effect until the date of 
     termination specified in such agreement.
     Conference agreement
       The conference agreement follows the Senate amendment.

            (6) Employee Protections; Transfer of Employees

     Present law
       No provision.
     House bill
       Transfer to the independent agency would not cause any 
     full-time personnel (except special government employees) or 
     part-time personnel holding permanent positions to be 
     separated or reduced in grade or compensation for one year 
     after such transfer.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill with 
     technical modifications. In addition, the provision 
     stipulates that transferred personnel who were not SSA 
     employees immediately prior to March 31, 1995, would not be 
     subject to directed reassignment to a duty station outside 
     their commuting area for one year after such date, except 
     that such personnel residing in the Baltimore, Maryland, or 
     Washington, D.C., commuting area would not be subject to 
     directed reassignment to duty stations in the Washington, 
     D.C. or Baltimore, Maryland, commuting areas, respectively, 
     for six months after such date. The conferees expect that in 
     implementing this provision, SSA will develop a definition of 
     ``commuting area'' no later than March 31, 1995.
       In establishing these protections, the conferees are 
     seeking to insure that SSA's transition to independent status 
     does not adversely affect any worker's employment, pay, or 
     grade. The conferees also want to protect employees who are 
     transferred as a result of this Act from HHS to SSA, and 
     their families, from having to relocate immediately. The 
     conferees intend these protections to extend only to 
     personnel actions and transfers stemming from the transition 
     of SSA to its new status as an independent agency. They 
     should not be interpreted as preventing SSA from taking 
     personnel actions unrelated to this transition that affect 
     employees' jobs, pay, or grade.


                         1. Transition Director

     Present law
       No provision.
     House bill
       No provision.
     Senate amendment
       SSA's transition to independent status would be led by a 
     Transition Director, who would be selected on the basis of 
     experience and knowledge of the operation of the Federal 
     Government. Within 30 days after enactment, the President 
     would be required to appoint the Transition Director, who 
     would be compensated at the rate provided for level IV of the 
     Executive Schedule.
       Before the Commissioner of the independent SSA has been 
     appointed, the Transition Director would be required to 
     consult regularly with the Director of the Office of 
     Management and Budget. Upon such appointment, the Transition 
     Director would work under the direction of the Commissioner 
     of SSA.
       Within 120 days of the enactment, the Transition Director 
     and the Commissioner of Social Security would be required to 
     report to the Congress on the status of the transition and on 
     any significant internal restructuring or management 
     improvements that are proposed to be undertaken.
     Conference agreement
       The conference agreement follows the House bill (i.e., no 
     provision).

                          m. Advisory Council

     Present law
       An advisory council is appointed by the Secretary of HHS 
     every four years for the purpose of reviewing the status of 
     the Social Security and Medicare programs.
     House bill
       No provision.
     Senate amendment
       There would be no quadrennial advisory councils for Social 
     Security, although quadrennial councils would continue to be 
     convened for Medicare.
     Conference agreement
       The conference agreement follows the Senate amendment, 
     except that the provision does not authorize quadrennial 
     advisory councils for Medicare. Also, the Advisory Council 
     appointed in 1994 would be authorized to complete its work. 
     The conferees expect that the Congress will consider 
     authorizing quadrennial advisory councils for Medicare in 
     future legislation.

                            n. Annual Report

     Present law
       The Secretary of HHS is required to make an annual report 
     to Congress on the administration of the functions with which 
     the Secretary is charged under the Social Security Act 
     (including OASDI and SSI).
     House bill
       No provision.
     Senate amendment
       The requirement for an annual report with respect to OASDI 
     and SSI would be eliminated.
     Conference agreement
       The conference agreement follows the Senate amendment, with 
     a technical amendment modifying provisions of existing law 
     which require the inclusion of information in SSA's annual 
     report so that this information will be provided to Congress 
     separately.
       The conferees do not intend this provision to override any 
     statutory requirements that SSA provide information to 
     Congress. Rather, reports that are mandated by law will 
     continue to be provided. Furthermore, in the absence of the 
     annual report, the conferees expect that SSA will include in 
     its annual statistical supplement basic information similar 
     to that currently included in the annual report on: (1) the 
     OASI, DI, and SSI programs, (2) the structure of SSA, 
     including numbers of local offices, regional offices, and 
     teleservice centers; (3) the size and distribution of SSA 
     staff; (4) pending workloads at each level of the disability 
     application and appeals process; and (5) representative 
     payees for Social Security and SSI beneficiaries.

                            o. Data Exchange

     Present law
       Within the current Department of Health and Human Services, 
     programs administered by the Social Security Administration, 
     the Health Care Financing Administration for Children and 
     Families, and other programs may disclose information from 
     their respective systems of records to assist the 
     administration of various HHS programs.
     House bill
       No provision.
     Senate amendment
       No provision.
     Conference agreement
       The provision would continue existing data exchanges 
     between HHS and SSA, by requiring the Secretary to disclose 
     to the Commissioner, and the Commissioner to the Secretary, 
     any record or information requested in writing by the other 
     for the purpose of administering any program, if the same 
     type of information was disclosed to SSA or HHS, 
     respectively, before the date of enactment.
       Until March 31, 1995, such exchanges may continue to be 
     carried out without need to publish new routine uses under 
     the Privacy Act, and without need for computer matching 
     agreements. Beginning March 31, 1996, additional data 
     exchanges and computer matching agreements shall be made in 
     compliance with the routine uses provision under the Privacy 
     Act.

                           p. Effective Date

     Present law
       No provision.
     House bill
       In general, the provision would take effect October 1, 
     1995.
     Senate amendment
       In general, the provision would take effect 180 days after 
     enactment.
     Conference agreement
       In general, the provision would take effect March 31, 1995. 
     The Secretary and the Commissioner would be required to 
     develop an arrangement for the transfer on March 31, 1995, of 
     SSA personnel, and resources to the independent agency. They 
     would be required to submit this plan to the Committee on 
     Ways and Means and the Committee on Finance no later than 
     January 1, 1995. No later than February 15, 1995, the General 
     Accounting Office would be required to issue a report to the 
     Committees evaluating this plan.
       The conferees expect this plan to be sufficiently detailed 
     that Congress and the GAO can evaluate whether the decisions 
     made by the Secretary and the Commissioner reflect a division 
     of staff and resources that is equitable from the perspective 
     of both agencies. The plan should include the number or 
     portion of staff from each division within the Office of the 
     Secretary that will be transferred to SSA and the method by 
     which those staff will be designated.
       In addition, to ensure that the Congress is fully informed 
     of the progress of the transition, the conferees expect GAO 
     to monitor the transition closely and to report frequently to 
     the Committee on Ways and Means and the Committee on Finance 
     on an informal basis. To facilitate GAO's role in the 
     transition, the conferees expect that all participants will 
     furnish the Comptroller General with such information as he 
     determines is necessary to apprise the Committees of the 
     progress of the transition.
       Further, the conferees require that, no later than November 
     1, 1994, the Secretary and the Commissioner report directly 
     to the Committee on Ways and Means and the Committee on 
     Finance on their progress in developing the required joint 
     plan.


   2. restrict disability insurance and supplemental security income 
                disability payments to substance abusers

(Sec. 201 of the House bill, secs. 301-305 of the Senate amendment, and 
                 sec. 201 of the conference agreement)

    a. Require that all DI Beneficiaries receive payment through a 
                          representative payee

     Present law
       Supplemental Security Income (SSI) recipients whose 
     alcoholism or drug addiction is a contributing factor 
     material to their disability are required to receive payments 
     through a representative payee, who has responsibility for 
     managing their finances. There is no parallel requirement for 
     the Disability Insurance (DI) program.
     House bill
       DI beneficiaries whose drug addiction or alcoholism is a 
     contributing factor material to their disability would be 
     required to receive payment through a representative payee. 
     Thus, for both DI and SSI, it would be deemed in the best 
     interest of the individual to be paid through a 
     representative payee if alcoholism or drug addiction is a 
     contributing factor material to the determination of 
     disability. Further, the requirement that payment be 
     certified to an alternative representative payee is modified 
     by specifying that this occur, ``if the interest of the 
     disabled individual would be served thereby.''
       The provision would become effective 180 days after 
     enactment for both current and prospective DI beneficiaries.
     Senate amendment
       DI beneficiaries whose disabilities are based in whole or 
     in part on a medical determination that the individual is a 
     drug addict or alcoholic would be required to receive 
     payments through a representative payee.
     Conference agreement
       The conference agreement follows the House bill with an 
     amendment providing that, for individuals determined eligible 
     for DI benefits beginning 180 days after enactment, the 
     requirement for a representative payee would become effective 
     with respect to their first benefit check. Notification that 
     the individual is subject to this requirement because 
     alcoholism or drug addiction is a contributing factor 
     material to his or her disability would be included in SSA's 
     award notice informing the individual of entitlement to 
     benefits.
       For DI beneficiaries on the rolls, this requirement would 
     become effective the month following the month in which SSA 
     provides notification that alcoholism or drug addiction is a 
     contributing factor material to the individual's disability 
     and that, as a consequence, the individual is required to 
     receive payment through a representative payee.
       An exception to these rules would apply in cases where SSA 
     has difficulty locating a suitable representative payee for a 
     DI beneficiary who is on the rolls prior to the effective 
     date of the amendment. In such situations, direct payment to 
     the individual could be made for up to 90 days.
       The conferees recognize that requiring SSA to identify 
     those DI beneficiaries on the rolls whose alcoholism or drug 
     addiction is material to their disability is a costly and 
     labor-intensive task. Finding appropriate representative 
     payees for these individuals will also present an enormous 
     challenge to the agency. The conferees are establishing these 
     requirements in spite of their difficulty because of the high 
     priority they place on halting the use of DI and SSI funds to 
     support disabling addictions. They expect that SSA will 
     implement this requirement in stages, giving first priority 
     to newly-adjudicated cases and individuals with primary 
     diagnoses of alcoholism or drug addiction. The conferees 
     place a high priority on accomplishing this task and expect 
     that SSA will make every effort to identify during the 180 
     days following enactment DI beneficiaries on the rolls who 
     are required to have representative payees and to find 
     suitable representative payees for these beneficiaries as 
     soon as possible.

                               b. Studies

     Present law
       No provision.
     House bill
       The Secretary of Health and Human Services would be 
     required to conduct a study of (a) the cost, feasibility, and 
     equity of requiring all DI and SSI beneficiaries who suffer 
     from alcoholism or drug addiction (including those whose 
     addiction did not contribute materially to the determination 
     of disability) to have a representative payee, (b) the 
     feasibility of, and appropriate timetable for, providing 
     benefits through non-cash means (e.g., vouchers, debit cards, 
     electronic benefit transfer systems), (c) the extent to which 
     child recipients are afflicted by drug addiction or 
     alcoholism and ways of addressing such affliction, including 
     the feasibility of requiring treatment, and (d) the extent to 
     which children's representative payees are afflicted by drug 
     addiction or alcoholism, and methods to identify these 
     afflicted individuals and to ensure that benefits continue to 
     be provided to beneficiaries appropriately.
       Not later than April 1, 1995, the Secretary shall transmit 
     to the Committee on Ways and Means and the Committee on 
     Finance a report on the findings and recommendations of the 
     study.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill, except 
     that the study of providing non-cash benefits to alcoholics 
     and drug addicts would focus on issues of cost and equity as 
     well as feasibility and would not include a timetable for 
     implementation. Also, the due date for the study would be 
     December 31, 1995.

c. Preference for Organizations as Representative Payees and Expansion 
                       of Qualified Organizations

     Present law
       The law is silent with regard to assigning an order of 
     preference for the appointment of representative payees. SSA 
     regulations give preference to family members and friends 
     over organizations in both the DI and SSI programs. If the 
     representative payee is determined to have misused any 
     benefits, the Secretary must certify payment to an 
     alternative payee or to the individual.
       Community-based nonprofit social service agencies in 
     existence on October 1, 1988, and serving as representative 
     payees for five or more recipients are allowed to collect a 
     monthly fee for their services the fee is collected from the 
     DI or SSI payment, and cannot exceed the lesser of ten 
     percent of the benefit or $25 per month. The authority for 
     qualified organizations to charge a fee for representative 
     payee services expired July 1, 1994.
     House bill
       In selecting a representative payee for an individual whose 
     alcoholism or drug addiction is a contributing factor 
     material to his or her disability, preference would be given 
     to qualified organizations, unless the Secretary determines 
     that selection of such an agency would not be appropriate.
       Further, the requirement that qualified organizations have 
     been in existence on October 1, 1988, to receive a fee for 
     representative payee services would be repealed, and the list 
     of qualified organizations would be expanded to include:
       (1) Community-based, nonprofit social services agencies;
       (2) State or local agencies whose mission is to carry out 
     income maintenance, social service, or health care-related 
     services; and
       (3) State or local government agencies with fiduciary 
     responsibilities (or a designee of such an agency if the 
     Secretary deems it appropriate).
       The authority for qualified organizations to charge a fee 
     for representative payee services (which expired July 1, 
     1994) would be reestablished and made permanent, and the 
     monthly fee for services that qualified representative payees 
     of drug addicts and alcoholics receive would be set at ten 
     percent of the monthly benefit.
     Senate amendment
       Any benefits payable to DI and SSI beneficiaries (including 
     retroactive benefits) based in whole or in part on alcoholism 
     or drug addiction would be payable only pursuant to a 
     certification of such payment to a qualified organization 
     acting as representative payee for the individual. A 
     qualified organization would be further defined to include an 
     agency or instrumentality of a State or a political 
     subdivision of a State.
     Conference agreement
       The conference agreement follows the House bill, with an 
     amendment that provides an exception to the preference for 
     organizations to serve as representative payees for drug 
     addicts and alcoholics to allow SSA to appoint a family 
     member as representative payee if appointing a family member 
     would be appropriate. However, the conferees intend that in 
     cases where the alcoholic or drug addict is abusive to family 
     members or in cases where family members turn over benefits 
     to the alcoholic or drug addict, a family member would not be 
     found to be an appropriate representative payee. In addition, 
     the conferees believe that there are no circumstances under 
     which bartenders should be permitted to serve as 
     representative payees for the customers they serve.
       The fee that organizational representative payees would be 
     permitted to charge drug addicts and alcoholics would be the 
     lesser of 10 percent of the monthly benefit or $50, indexed 
     to the Consumer Price Index. In addition, the authority for 
     qualified organizations to charge a fee for representative 
     payee services would be made retroactive to July 1, 1994; and 
     the ceiling on fees for organizational representative payees 
     of OASDI and SSI beneficiaries who are not alcoholics or drug 
     addicts--currently $25--would be indexed to the CPI.

                        d. Treatment Requirement

     Present law
       SSI recipients whose alcoholism or drug addiction is a 
     contributing factor material to their disability are required 
     to undergo treatment, when available, at approved facilities. 
     They must also comply with the terms of their treatment 
     program and comply with monitoring and testing provided by 
     the Secretary. There are no parallel requirements for the DI 
     program.
     House bill
       DI beneficiaries whose drug addiction or alcoholism is a 
     contributing factor material to their disability and who are 
     determined eligible for benefits at least 180 days after 
     enactment would be required to undergo treatment, when 
     available, at approved facilities; to comply with the terms 
     of such treatment programs; and to comply with monitoring and 
     testing provided by the Secretary.
       In addition, DI beneficiaries on the rolls with a primary 
     diagnosis of alcoholism or drug addiction would be subject to 
     these requirements.
     Senate amendment
       DI and SSI beneficiaries whose disability is based in whole 
     or in part on drug addiction or alcoholism would be required 
     to undergo treatment, when available, at approved facilities; 
     to allow their treatment to be monitored; and to comply with 
     monitoring and testing provided by the Secretary.
     Conference agreement
       The conference agreement generally follows the House bill 
     with respect to new DI beneficiaries. With respect to DI 
     beneficiaries on the rolls as of the effective date of this 
     provision, treatment would be required, if available, for all 
     individuals whose alcoholism or drug addiction is a 
     contributing factor material to their disability.
       For individuals determined eligible for DI benefits 
     following the effective date of this provision, the 
     requirement to undergo treatment, if available, would apply 
     beginning with the first month that they receive a benefit 
     check. Notification that the individual is subject to this 
     requirement because alcoholism or drug addiction is a 
     contributing factor material to his or her disability would 
     be included in SSA's award notice informing the individual of 
     entitlement to benefits.
       For DI beneficiaries on the rolls, the treatment 
     requirement would become effective the month following the 
     month in which SSA provides notification that alcoholism or 
     drug addiction is a contributing factor material to the 
     individual's disability and that, as a consequence, he or she 
     is required to undergo treatment, if available, as a 
     condition of eligibility.

         e. Appropriate Treatment and Standards for Compliance

     Present law
       Under the SSI program, alcoholics and drug addicts must 
     undergo ``any treatment which may be appropriate for their 
     condition at an institution or facility approved by the 
     Secretary (so long as such treatment is available).'' There 
     is no parallel requirement in the DI program.
     House bill
       DI and SSI recipients whose alcoholism or drug addiction is 
     a contributing factor material to their disability would be 
     required to undergo any medical or psychological treatment 
     that is appropriate for the individual's addition and for the 
     stage of the individual's rehabilitation, at an approved 
     facility.
       The Secretary, in consultation with drug and alcohol 
     treatment professionals, would be required to issue 
     regulations further defining appropriate treatment and 
     compliance, and to establish guidelines for evaluating 
     compliance, including measures of the progress expected of 
     participants.
     Senate amendment
       Similar provision, but excludes the requirement that the 
     Secretary issue regulations defining compliance with 
     treatment.
     Conference agreement
       The conference agreement follows the House bill, except 
     that the requirement to undergo ``any medical or 
     psychological treatment'' would be replaced with a 
     requirement to undergo ``appropriate substance abuse 
     treatment.'' This change is intended to assure that SSA 
     continues to treat organizations such as Alcoholics Anonymous 
     as qualified treatment providers.
       The conferees anticipate that, in addition to issuing 
     regulations, SSA will develop specific guidelines for 
     assessing compliance. These guidelines should be consistent 
     with the thrust of the regulations. However, the conferees 
     expect that the guidelines will be altered from time to time, 
     based on improved medical understanding of addiction.

         f. Benefit Suspension for Noncompliance With Treatment

     Present law
       SSI law requires disabled alcoholics and drug addicts to 
     participate in treatment, if available, as a condition of 
     eligibility. It does not, however, specify the timing and 
     duration of benefit suspensions for failure to comply with 
     this requirement. There is no parallel requirement for the DI 
     program.
     House bill
       Benefits would be suspended for DI and SSI disability 
     beneficiaries who fail to undergo or comply with required 
     treatment for drug addiction or alcoholism. (Medicare 
     benefits would continue during the period of DI suspension, 
     as would Medicaid benefits for suspended SSI recipients). To 
     qualify for benefit reinstatement, DI and SSI recipients 
     would have to demonstrate compliance with treatment for 
     progressively longer periods--two months, three months, and 
     six months for the first, second, third (and subsequent) 
     instances of noncompliance, respectively. An individual's DI 
     or SSI benefits would be terminated after he or she was 
     suspended for 12 consecutive months. As under current law, 
     terminated individuals could reapply for benefits.
     Senate amendment
       The individual must demonstrate in such manner as the 
     Secretary requires, including at a continuing disability 
     review not later than 1 year after the determination of 
     disability, that the individual is complying with the terms 
     and conditions of treatment. If the Secretary finds that an 
     individual is not complying, the Secretary, in lieu of 
     termination, may suspend benefits until compliance is 
     reestablished, including compliance with any additional 
     requirements the Secretary determines necessary.
     Conference agreement
       The conference agreement follows the House bill, except 
     that suspensions would become effective the month following 
     notification by SSA of the noncompliance and resulting 
     suspension, rather than the month of noncompliance. (An 
     individual may be determined as failing to comply for a month 
     only if treatment is available for the month.)

      g. Referral and Monitoring Activities and Report on Testing

     Present law
       The Secretary of HHS must provide for the monitoring and 
     testing of all SSI recipients whose alcoholism or drug 
     addiction is a contributing factor material to their 
     disability. There is no parallel requirement for the DI 
     program.
     House bill
       The Secretary would be required to establish a referral and 
     monitoring agency for each State. These agencies would 
     identify appropriate placements for DI and SSI recipients who 
     are drug addicts and alcoholics, refer them to such 
     treatment, monitor compliance, and report failures to comply 
     to the Secretary. The Secretary would also be required to 
     provide for the testing of DI beneficiaries, as is currently 
     required under the SSI program.
       The Secretary would be required to submit annual reports to 
     Congress on required testing and referral and monitoring 
     activities for DI beneficiaries, as is currently required in 
     the SSI program. These reports would indicate the number and 
     percentage of DI and SSI substance abusers who did not 
     receive regular testing during the year.
     Senate amendment
       Within 1 year of enactment, the Secretary of HHS would be 
     required to provide for the establishment of referral and 
     monitoring agencies for each State, as well as for the 
     testing of DI beneficiaries, as is currently required under 
     the SSI program.
     Conference agreement
       The conference agreement follows the House bill with minor 
     drafting modifications and with an amendment replacing the 
     requirement for annual reports with a one-time report, due 
     December 31, 1996. Thereafter, annual reports on testing and 
     referral and monitoring activities would no longer be 
     required under the SSI program.
       In requiring SSA to provide drug testing, the conferees 
     intend that this authority be used as a tool for assessing 
     compliance with treatment in those instances where a test is 
     likely to yield important information. This provision should 
     not be interpreted as requiring random drug or alcohol 
     testing of all DI and SSI beneficiaries who are disabled by 
     alcoholism or drug addiction.

                           h. 36-Month Limit

     Present law
       No provision.
     House bill
       DI and SSI benefits (including retroactive benefits) for 
     individuals whose drug addition or alcoholism is a 
     contributing factor material to their disability would be 
     terminated after 36 months of entitlement. Once terminated, 
     the individual would not be entitled to any future benefits 
     if alcoholism or drug addition were a contributing factor 
     material to the disability termination. For those 
     beneficiaries on the rolls 180 days after enactment of this 
     provision, the first month ending after 180 days after 
     enactment would be treated as the first month of entitlement 
     for the purpose of determining their 36-month period of 
     entitlement.
     Senate amendment
       In no event would an individual be entitled to benefits for 
     more than a total of 36 months (excluding periods of 
     suspension) unless upon the termination of the 36th month the 
     individual furnishes evidence 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.
     Conference agreement
       SSI recipients whose alcoholism or drug addiction is a 
     contributing factor material to SSA's determination that they 
     are disabled would be terminated from the rolls after 
     receiving 36 months of benefits unless they are disabled for 
     some reason other than alcoholism or drug addiction. The 36-
     month limit would be applied to DI substance abusers 
     beginning when treatment becomes available. DI substance 
     abusers would be terminated after receiving benefits in 
     treatment for 36 months, unless they are disabled for some 
     reason other than substance abuse. The conferees expect that 
     SSA will notify DI and SSI beneficiaries well in advance of 
     the 36-month termination that benefits will be ceased, unless 
     the individual provides evidence that he or she is disabled 
     independent of alcoholism or drug addiction.
       For SSI recipients determined eligible for benefits after 
     180 days after enactment, the 36-month limit would begin to 
     toll with the first month for which the individual receives a 
     benefit check. Notification that the individual is subject to 
     the 36-month limit because alcoholism or drug addiction is a 
     contributing factor material to his or her disability would 
     be included in SSA's award notice informing the individual of 
     eligibility for benefits. For SSI recipients on the rolls, 
     the limit would also begin to toll 180 days after enactment; 
     and SSA would be required to notify all affected individuals 
     prior to this date that they are subject to this limit 
     because alcoholism or drug addiction is a contributing factor 
     material to their disability.
       For DI beneficiaries (both current and newly-entitled 
     individuals), the limit would begin when treatment becomes 
     available, at which time SSA would be required to notify the 
     individual that he or she is subject to the limit.
       For both groups, only those months for which an individual 
     receives a benefit would be counted toward the 36-month 
     period. (Periods of benefit suspension would be excluded.) An 
     individual whose benefits are terminated as a result of the 
     36-month limit may not receive benefits for any following 
     month if, in such following month, alcoholism or drug 
     addiction is a contributing factor material to the 
     Secretary's determination that the individual is disabled.
       Medicare and Medicaid would be continued beyond the 36-
     month period so long as the terminated individual continues 
     to be disabled, as would benefits for dependents of 
     terminated DI beneficiaries (see ``i'').
       The provision would sunset the 36-month limit, effective 
     October 1, 2004.

     i. Dependents Benefits After 12-Month and 36-Month Termination

     Present law
       Dependents are entitled to DI benefits only so long as the 
     worker on whose wage record benefits are paid is so entitled.
     House bill
       Dependents' benefits would be continued for two years after 
     the worker on whose record benefits are paid is terminated 
     from the DI rolls.
     Senate amendment
       No provision.
     Conference agreement
       Dependents' benefits would be continued so long as the 
     worker on whose record benefits are paid continues to be 
     disabled.

             j. Proration of Retroactive Lump-Sum Benefits

     Present law
       No provision.
     House bill
       Retroactive lump-sum DI and SSI disability benefits for 
     individuals whose alcoholism or drug abuse is a contributing 
     factor material to their disability would be prorated and 
     paid gradually. Each monthly payment would be limited to 200 
     percent of the normal benefit amount.
     Senate amendment
       Retroactive lump-sum benefits for individuals whose 
     disabilities are related in whole or in part to alcoholism or 
     drug addiction would be paid to a representative payee, who 
     would be charged with managing the individual's finances.
     Conference agreement
       The conference agreement follows the House bill, with 
     amendments that:
       (1) Create an exception for individuals who are at high 
     risk of homelessness because they incurred debts related to 
     housing while awaiting their eligibility decision. The 
     exception would be limited to the amount of the debt;
       (2) Provide that, when a beneficiary dies without having 
     received the full amount of his or her retroactive benefits 
     in prorated payments, the unpaid amount would be treated as 
     an underpayment; and
       (3) Provide that, when retroactive benefits are owed to an 
     individual whose entitlement ceases due to 12 months of 
     suspension or the 36-month limit, prorated payments would 
     continue through a representative payee until all retroactive 
     benefits are paid.
       The conferees are establishing the first exception to help 
     insure that the restrictions being imposed on lump-sum 
     payments will not result in an increased level of 
     homelessness. They expect representative payees to use any 
     amounts so excepted for the sole purpose of repaying housing-
     related debts.
       The second and third exceptions recognize that, once an 
     individual has been determined eligible for DI and SSI 
     benefits, subsequent events--such as failure to comply with 
     required treatment, the imposition of the 36-month limit, or 
     the individual's death--do not negate his or her previous 
     eligibility and resulting right to past-due benefits.

                      k. Illegal Activity and SGA

     Present law
       No provision.
     House bill
       In determining whether an individual is engaging in 
     substantial gainful activity, the Secretary must consider 
     services performed or earnings derived from such services 
     without regard to the legality of such services.
     Senate amendment
       Any proceeds derived from criminal activity undertaken to 
     support substance abuse would be treated as evidence of the 
     individual's ability to engage in substantial gainful 
     activity.
     Conference agreement
       The conference agreement follows the House bill.

                       l. Demonstration Projects

     Present Law
       No provision.
     House bill
       The Secretary of HHS would be required to develop and carry 
     out demonstration projects designed to explore innovative 
     referral, monitoring, and treatment approaches for drug 
     addicts and alcoholics who are subject to a treatment 
     requirement. A report to the Committee on Ways and Means and 
     Committee on Finance would be due not later than December 31, 
     1997.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill, with an 
     amendment authorizing the Secretary to include individuals 
     who are not DI or SSI beneficiaries in the projects, to the 
     extent that this is necessary to determine the most effective 
     referral, monitoring, and treatment approaches for DI and SSI 
     beneficiaries. The conferees expect that the Department of 
     Health and Human Service (Substance Abuse and Mental Health 
     Services Administration) and the Social Security Commissioner 
     will coordinate their efforts with respect to such projects.

                           m. Effective Date

       In general, the provision would take effect 180 days after 
     enactment.


   3. issuance of physical documents in the form of bonds, notes, or 
            certificates to the social security trust funds

 (Sec. 202 of the House bill and sec. 301 of the conference agreement)

     Present law
       In general, section 201(d) of the Social Security Act 
     requires the Secretary of the Treasury to invest annual 
     surpluses of the Social Security Trust Funds in interest-
     bearing obligations of the U.S. government. Under current 
     Treasury practice, these holdings are recorded as entries on 
     a ledger. No physical documents are required to be issued to 
     the Trust Funds evidencing these obligations.
     House bill
       The provision would require that each obligation issued for 
     purchase by the Social Security Trust Funds be evidenced by a 
     physical document in the form of a bond, note, or certificate 
     of indebtedness issued by the Secretary of the Treasury. The 
     physical document would state the principal amount, date of 
     maturity, and interest rate of the obligation. It would also 
     state 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.''
       In addition, interest on such obligations would be paid to 
     the Trust Funds with paper checks drawn on the general fund.
       Effective date.--The provision would apply with respect to 
     obligations issued, and payments made, after 60 days after 
     the date of enactment. No later than 60 days after enactment, 
     the Secretary of the Treasury would be required to issue to 
     the Social Security Trust Funds physical documents in the 
     form of bonds, notes, or certificates of indebtedness for all 
     outstanding Social Security Trust Fund obligations.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill.
       Effective date--The provision would apply with respect to 
     the obligations issued, and payments made, after 60 days 
     after the date of enactment. No later than 60 days after 
     enactment, the Secretary of the Treasury would be required to 
     issue to the Social Security Trust Funds physical documents 
     in the form of bonds, notes, or certificates of indebtedness 
     for all outstanding Social Security Trust Fund obligations.


4. gao study regarding telephone access to local offices of the social 
                        security administration

 (Sec. 203 of the House bill and sec. 302 of the conference agreement)

     Present law
       The Omnibus Budget Reconciliation Act of 1990 (P.L. 101-
     508), requires SSA to: (a) maintain telephone access to local 
     offices at the level generally available as of September 30, 
     1989, and (b) relist the numbers of affected offices in local 
     telephone directories. P.L. 101-508 also required the General 
     Accounting Office to report to Congress on the level of 
     public telephone access to local offices following enactment 
     of these requirements.
       In September 1991, the GAO reported that SSA had generally 
     complied with the requirement that it relist local office 
     telephone numbers. It also reported that general inquiry 
     lines to the offices to which the provisions of P.L. 101-508 
     apply had decreased by 30 percent, or 766 lines, below the 
     level that existed on September 30, 1989.
     House bill
       The provision would add the following sentence to the 
     current statutory requirement that SSA maintain public access 
     to its local offices at the level generally available on 
     September 30, 1989: ``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.''
       In addition, the General Accounting Office would be 
     required to make an independent determination of the number 
     of telephone lines to each SSA local office which are in 
     place as of 90 days after enactment and to report its 
     findings to the House Committee on Ways and Means and the 
     Senate Committee on Finance no later than 150 days after 
     enactment.
       SSA would be required to maintain its toll-free service at 
     a level at least equal to that in effect on the date of 
     enactment.
     Senate amendment
       No provision.
     Conference agreement
       The provision would require the General Accounting Office 
     to assess SSA's use of innovative technology (including 
     attendant call and voice mail) to increase public telephone 
     access to local Social Security offices (including a separate 
     assessment of the impact of such technology on offices to 
     which public access was curtailed on October 1, 1989.) The 
     conferees expect that, as part of this assessment, GAO will 
     evaluate the telephone access demonstration projects using 
     attendant call and voice mail that SSA has indicated that it 
     is about to begin. A report to the House Committee on Ways 
     and Means and the Senate Committee on Finance would be due no 
     later than January 31, 1996.
       Effective date.--Upon enactment.


 5. Expansion of State Option to Exclude Service of Election Officials 
                   or Election Workers from Coverage

 (Sec. 204 of the House bill and sec. 303 of the conference agreement)

     Present law
       Election workers who earn less than $100 per year are 
     subject to three Social Security exclusions: (a) at the 
     option of a State, they may be excluded from the State's 
     voluntary coverage agreement with the Secretary of Health and 
     Human Services (HHS); (b) they are excluded from the 
     requirement that State and local workers hired after March 
     31, 1986, pay the hospital insurance portion of the Social 
     Security tax (1.45 percent); and (c) they are excluded from 
     the requirement in the Omnibus Budget Reconciliation Act of 
     1990 (P.L. 101-508) that State and local workers who are 
     neither covered by a State or local retirement system nor by 
     a voluntary agreement pay the full Social Security tax (7.65 
     percent).
     House bill
       These three exclusions would be modified to apply to 
     election workers with annual earnings of up to $1,000, rather 
     than the current $100; and the new exempt amount would be 
     indexed for increases in wages in the economy.
       Effective date.--The provision would apply to services 
     performed on or after January 1, 1995. Modifications of State 
     voluntary agreements to reflect the higher exclusion for 
     election workers would 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.
     Senate amendment
       No provision
     Conference agreement
       The conference agreement follows the House bill except that 
     there would be no adjustments in the threshold for wage 
     increases before January 1, 2000.
       Effective date.--The provision would apply to services 
     performed on or after January 1, 1995. Modifications of State 
     voluntary agreements to reflect the higher exclusion for 
     election workers would 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.


 6. Use of Social Security Numbers By States and Local Governments and 
          Federal District Courts for Jury Selection Purposes

   (Sec. 205 of House bill and sec. 304 of the conference agreement)

     Present law
       The Privacy Act of 1974 prohibits States from requiring 
     individuals to provide Social Security numbers for 
     identification purposes unless the State was doing so prior 
     to January 1, 1975, or the State is specifically permitted to 
     do so under Federal law. The Social Security Act currently 
     authorizes States to use the Social Security number in 
     administration of any tax, general public assistance and 
     driver's license or motor vehicle registration law within its 
     jurisdiction. Other Federal statutes authorize the State use 
     of the Social Security number for other purposes.
       Currently, courts utilize jury source lists within their 
     jurisdiction to select jurors. Source lists (most commonly) 
     made up of lists of licensed drivers and registered voters) 
     are usually computer tapes merged by the courts to form one 
     pool--or master list--from which jurors are selected.
       States which are permitted under current law to collect 
     Social Security numbers for purposes such as driver's 
     licenses and voter registration are not allowed to use those 
     Social Security numbers for other purposes such as refining 
     jury selection master lists to identify and eliminate 
     duplicate names, unless the court was using the Social 
     Security number for that purpose before the Privacy Act took 
     effect.
       Current law likewise prevents State and Federal Courts from 
     using the Social Security number to run the merged list 
     against computerized lists of convicted felons in order to 
     eliminate these individuals from jury pools.
     House bill
       States and Federal District Courts would be permitted to 
     use Social Security numbers which have already been collected 
     for purposes permitted under current law to eliminate 
     duplicate names and names of convicted felons from jury 
     source lists. Any Federal law enacted prior to enactment of 
     this provision which is inconsistent with the above policy 
     would be null, void and of no effect.
       Effective date.--The provision would be effective upon 
     enactment.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill.
       Effective date.--The provision would be effective upon 
     enactment.


 7. Authorization for All States to Extend Coverage To State and Local 
  Police Officers and Firefighters Under Existing Coverage Agreements

 (Sec. 206 of the House bill and sec. 305 of the conference agreement)

     Present law
       In general, employees of State and local governments who 
     participate in a public retirement system can be brought 
     under Social Security by means of voluntary agreements 
     entered into by the States with the Secretary of Health and 
     Human Services.
       However, the State option to obtain Social Security 
     coverage for police officers and firefighters who are under a 
     public retirement system applies only in 24 States that are 
     named in the Social Security Act. (An additional option 
     applies with respect to firefighters only: any State may 
     obtain coverage for them if the governor certifies that it 
     would improve the overall benefit protection of firefighters 
     in the coverage group and a referendum is held among the 
     group under authorization of the State.) The Act also 
     provides that, in the 24 named States, Social Security 
     coverage can be obtained only after a State-sponsored 
     referendum.
     House bill
       The provision would extend to all States the option to 
     provide police officers and firefighters who participate in a 
     public retirement system with Social Security coverage under 
     their voluntary agreements with the Secretary of HHS. The 
     existing requirement for a referendum held under the 
     authority of the State would continue to apply.
       Effectively date.--The provision would apply with respect 
     to modifications filed by States after enactment.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill.
       Effective date.--The provision would apply with respect to 
     modifications filed by States after enactment.


     8. Limited Exemption for Canadian ministers from certain self-
                        employment tax liability

 (Sec. 207 of the House bill and sec. 306 of the conference agreement)

     Present law
       Section 233 (c)(1) of the Social Security Act authorizes 
     the President to enter into ``totalization agreements'' with 
     foreign countries to coordinate entitlement to Social 
     Security benefits in the U.S. with pension benefits in those 
     foreign countries. The law requires that international 
     agreements concluded pursuant to that section provide for the 
     elimination of dual coverage of work under the Social 
     Security systems of the United States and another country.
       Article V(7) of the totalization agreement between the 
     United States and Canada provides that individuals considered 
     self-employed by the United States who are American citizens 
     but are residents of Canada are covered only under the 
     Canadian Pension Plan.
       Under the Social Security Act, an individual who is duly 
     ordained, commissioned, or licensed minister of a church or a 
     member of a religious order is generally considered self-
     employed for Social Security payroll tax purposes and subject 
     to SECA taxes.
       The Canadian social insurance program treats ministers as 
     employees of the church rather than self-employed.
       Prior to the 1984 totalization agreement with Canada, duly 
     ordained and licensed ministers who were American citizens, 
     but residents of Canada, were required to pay SECA taxes to 
     the United States and Social taxes to Canada.
       In some cases, ministers who were American citizens, ut 
     residents of Canada, failed to file tax returns or pay SECA 
     tax believing that they were not required to do so because 
     they were paying into the Canadian Pension Plan as residents 
     of Canada. The Internal Revenue Service has assessed taxes 
     and penalties against those ministers who failed to file a 
     return and pay the required taxes prior to the 1984 
     agreement.
     House bill
       The provision would exempt ministers who failed to pay SECA 
     taxes in the United States on earnings from services 
     performed in Canada for a period before the 1984 totalization 
     agreement between the United States and Canada went into 
     effect, and who were required to pay social insurance taxes 
     in Canada on such earnings, from the payment of such taxes or 
     related penalties, owed to the United States.
       The ministers' Social Security earnings records would not 
     be credited for years in which the SECA tax was not paid.
       Effective date.--The provision would be effective for 
     individuals who meet the requirements of the statute and who 
     file a certificate with the Internal Revenue Service within 
     180 days after the IRS issues regulations implementing this 
     provision. The certificate shall be effective for taxable 
     years 1979 through 1984.
       The Social Security benefit for current Social Security 
     beneficiaries who file certificates under this provision, 
     would be recomputed for months following approval of the 
     certificate of exemption.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill.
       Effective date.--The provision would be effective for 
     individuals who meet the requirements of the statute and who 
     file a certificate with the Internal Revenue Service within 
     180 days after the IRS issues regulations implementing this 
     provision. The certificate shall be effective for taxable 
     years 1979 through 1984.
       The Social Security benefit for current Social Security 
     beneficiaries who file certificates under this provision 
     would be recomputed for months following approval of the 
     certificate of exemption.


   9. Exclusion of Totalization Benefits from the Application of the 
                     Windfall Elimination Provision

 (Sec. 208 of the House bill and sec. 307 of the conference agreement)

     Present law
       The President is authorized to enter into ``totalization 
     agreements'' with foreign countries. If an individual has 
     worked under Social Security systems in both the U.S. and a 
     foreign country with which the U.S. has such an agreement, 
     but has not worked long enough to qualify for a benefit, a 
     totalization agreement allows the individual's coverage under 
     both systems to be combined, or ``totalized,'' in order for 
     one country (or both) to pay a benefit. Benefits paid under a 
     totalization agreement are generally prorated to take account 
     of the fact that the person did not work for an entire career 
     under the system that is paying benefits.
       The windfall elimination provision (WEP) is applied to the 
     computation of Social Security benefits for workers who are 
     eligible for both Social Security and a pension from work not 
     covered by Social Security. Under the WEP, a different 
     benefit formula yielding a lower amount is used to calculate 
     the worker's Social Security benefit.
       With respect to individuals who have worked under Social 
     Security systems in both the United States and a foreign 
     country with which the United States has a totalization 
     agreement, the WEP applies: 1) in the computation of some 
     U.S. totalization benefits, and 2) in the computation of 
     regular U.S. Social Security benefits if the individual 
     receives a foreign totalization benefit.
     House bill
       The provision would disregard the windfall elimination 
     provision in computing any U.S. totalization benefit, and in 
     computing the amount of a regular U.S. benefit of an 
     individual who (1) receives a foreign totalization benefit 
     based in part on U.S. employment and (2) does not receive any 
     other pension which is based on non-covered employment
       Effective date.--The provision would be effective with 
     respect to benefits payable for months after January, 1995.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill.
       Effective date.--The provision would be effective with 
     respect to benefits payable for months after December, 1994.


10. Exclusion of Military Reservists from Application of the Government 
         Pension Offset and the Windfall Elimination Provisions

 (Sec. 209 of the House bill and sec. 308 of the conference agreement)

     Present law
       The Government Pension Offset (GPO) and the Windfall 
     Elimination Provision (WEP) are intended to reduce Social 
     Security benefits payable to an individual who qualifies for 
     both a Social Security benefit and a pension based on 
     employment not covered by Social Security.
       The WEP reduces a worker's Social Security retirement or 
     disability benefit in cases where the worker is receiving 
     both a Social Security benefit and a pension based on 
     employment not covered by Social Security. The WEP is 
     designed to eliminate the windfall resulting from the 
     weighted Social Security benefit formula which is intended to 
     replace a higher proportion of wages for low-earning workers 
     than for high-earning workers.
       Active military service became covered under Social 
     Security in 1957. Inactive duty by reservists (such as 
     weekend drills) became covered under Social Security in 1988. 
     A pension based on either type of service (active or 
     inactive), if performed before 1957, does not trigger the 
     WEP. The only military pension which triggers the WEP is a 
     pension based on inactive duty after 1956 and before 1988.
       Under the GPO, spouse's and widow(er)'s benefits received 
     by an individual based on his or her spouse's Social 
     Security-covered work are reduced by two-thirds of the amount 
     of any government pension to which the individual is entitled 
     based on his or her own work in a government job not covered 
     under Social Security.
     House bill
       An individual's receipt of a pension based wholly on 
     service performed as a member of a uniformed service, whether 
     on active or inactive duty and whether performed prior to 
     1988 or not, would not trigger application of the GPO and WEP 
     to the individual's Social Security benefits.
       Effective date.--The provision would be effective with 
     respect to benefits payable for months after January, 1995.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill.
       Effective date.--The provision would be effective with 
     respect to benefits payable for months after December, 1994.


            11. repeal of the facility-of-payment provision

 (Sec. 210 of the House bill and sec. 309 of the conference agreement)

     Present law
       As a general rule, when an individual receiving benefits as 
     the dependent of a worker has a deduction in his or her 
     benefits--for example, due to his or her own earnings 
     exceeding the earnings test exempt amount--and the Maximum 
     Family Benefit rule applies, the withheld benefits are 
     redistributed and paid to other dependents. (The Maximum 
     Family Benefit, or MFB, is a limit on the total amount of 
     benefits which can be paid on a worker's record to the worker 
     and his or her dependents.)
       However, if all of the dependents are living in the same 
     household, the affected individual's benefit check is not 
     actually withheld; instead, the individual receives a notice 
     from the Social Security Administration accompanying the 
     benefit check. This notice explains that the beneficiary is 
     subject to a benefit deduction and should not actually 
     receive the benefit check. However, the benefit is being paid 
     with the understanding that it is for the use and benefit of 
     the other dependent beneficiaries. This procedure is known as 
     the facility-of-payment provision.
       In cases where all the dependent beneficiaries are not 
     residing in the same household, the facility-of-payment 
     provision does not apply and the withheld benefits are 
     redistributed and paid directly to the remaining dependents.
     House bill
       The facility-of-payment provision would be repealed. As a 
     result, a beneficiary who is subject to a deduction would 
     have his or her benefits withheld, and the withheld amount 
     would be redistributed and paid directly to the other 
     dependents.
       Effective date.--The provision would be effective for 
     benefits payable for months after December, 1995.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill.
       Effective date.--The provision would be effective for 
     benefits payable for months after December, 1995.


             12. maximum family benefits in guarantee cases

       (Sec. 211 of the House bill and sec. 310 of the conference 
     agreement)
     Present law
       A guarantee is provided for workers who receive disability 
     benefits, then stop receiving disability benefits, and 
     subsequently become reentitled to benefits due to death, 
     retirement or disability. This `'subsequent entitlement 
     guarantee'' provides that the basic benefit amount (the 
     Primary Insurance Amount, or PIA) of a worker who becomes 
     reentitled to benefits or dies (thereby entitling his or her 
     survivors) cannot be less than the PIA in effect in the last 
     month of the worker's prior entitlement to disability 
     benefits.
       Due to a drafting error in the 1977 Social Security 
     Amendments, the guarantee does not extend to the Maximum 
     Family Benefit (MFB) payable on the worker's record, which is 
     determined based upon the PIA. (The MFB is a limit on the 
     total amount of benefits which may be paid on a worker's 
     record to the worker and his or her dependents.) As a result, 
     the MFB which is payable when the worker becomes reentitled 
     to benefits or dies may be less than the MFB payable in the 
     last month of the worker's prior entitlement to disability 
     benefits.
     House bill
       The provision would make a conforming change in the Maximum 
     Family Benefit, so that the guaranteed PIA would be the basis 
     for calculating the guaranteed Maximum Family Benefit.
       Effective date.--The provision would be effective for the 
     MFB of workers who become reentitled to benefits or die 
     (after previously having been entitled) after January, 1995.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill.
       Effective date.--The provision would be effective for the 
     MFB of workers who become reentitled to benefits or die 
     (after previously having been entitled) after December, 1995.


  13. Authorization for Disclosure of Social Security Administration 
   Information for Purposes of Public or Private Epidemiological and 
                            Similar Research

 (Sec. 212 of the House bill and sec. 311 of the conference agreement)

     Present law
       Current law prohibits Federal agencies from releasing 
     personal information contained in an individual file without 
     the written consent of the individual.
       Prior to the 1989 Supreme Court decision United States 
     Department of Justice v. Reporters Committee for Freedom of 
     the Press (Reporters Committee), the Social Security 
     Administration (SSA) would permit disclosure of personally 
     identifiable information to epidemiological researchers 
     believing that it was permitted to do so under the Freedom of 
     Information Act (FOIA). Disclosure of personal information is 
     permitted under FOIA when the public interest served by the 
     disclosure outweighs the privacy interest served by 
     withholding and information.
       In the Reporters Committee decision, the Supreme Court 
     restricted disclosures of personally identifiable information 
     under FOIA, ruling that disclosure of personal information 
     serves the public interest only when the requested 
     information gives the public insight into the Federal 
     government's performance of its statutory duties.
       As a result of the Reporters Committee decision, SSA has 
     discontinued the practice of disclosing information from its 
     files to epidemiological researchers.
       Epidemiological research examines specific risk factors 
     (such as exposure to chemical agents or specific medical 
     treatments) that may cause disease by measuring the effect of 
     these factors on a known population.
     House bill
       The provision would require SSA, under certain 
     circumstances, to disclose limited personally identifiable 
     information for epidemiological research purposes only, and 
     it would permit the Secretary of the Treasury to provide such 
     information to SSA for purposes of complying with such 
     requirement.
       Under the provision, SSA would be required to comply with 
     requests for information showing whether an individual is 
     alive or deceased. The requester would be required to meet 
     two conditions:
       (1) the information would be used for epidemiological or 
     similar research which the Secretary determined showed a 
     reasonable promise of contributing to a national health 
     interest; and
       (2) the requester agrees to reimburse the Secretary for 
     providing such information and agree to comply with 
     limitations on safeguarding and rerelease or redisclosure of 
     such information, as specified by the Secretary. The 
     Secretary would not be required to comply with a request for 
     information if doing so would constitute a violation of a 
     contract entered into with a State for the provision by the 
     State of death information.
       The Secretary of the Treasury would be permitted to provide 
     such information to SSA for purposes of complying with such a 
     requirement.
       Effective date.--The provision would apply to requests for 
     information made after the date of enactment.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill.
       Effective date.--The provision would apply to requests for 
     information made after the date of enactment.


14. misuse of symbols, emblems or names in reference to social security 
administration, department of health and human services, or department 
                            of the treasury

 (Sec. 213 of the House bill and sec. 312 of the conference agreement)

     Present law
       In 1988, Congress enacted a provision prohibiting the use 
     of words, letters, symbols and emblems of the Social Security 
     Administration (SSA) and the Health Care Financing 
     Administration (HCFA) in a manner that the user knows or 
     should know would convey the false impression that such an 
     item was approved, endorsed, or authorized by the Social 
     Security Administration, the Health Care Financing 
     Administration or the Department of Health and Human 
     Services, or that the user has some connection with, or 
     authorization from, these agencies.
       The law permits the Secretary of Health and Human Services 
     (HHS) to impose civil monetary penalties not to exceed $5,000 
     per violation or, in the case of a broadcast or telecast, 
     $25,000 per violation. The total amount of penalties which 
     may be imposed is limited to $100,000 per year.
       Amounts collected by the Secretary are deposited as 
     miscellaneous receipts of the Treasury of the United States.
       There is no provision in present law prohibiting the use of 
     titles, symbols, emblems, and names of the Department of the 
     Treasury (and its subsidiary agencies) in connection with 
     advertisements, mailings, solicitations, or other business 
     activities.
     House bill
       The provision would amend current law to:
       (a) eliminate the annual cap on penalties;
       (b) also prohibit the use of words and letters of the 
     Department of Health and Human Services, Supplemental 
     Security Income Program, or Medicaid, and the symbols or 
     emblems of the Department of Health and Human Services;
       (c) define a ``violation,'' with regard to mailings, as 
     each individual piece of mail in a mass mailing;
       (d) Further prohibit the use of names, letters or emblems 
     of SSA, HCFA, or HHS in a manner that reasonably could be 
     interpreted to convey a relationship with these agencies;
       (e) exempt from the prohibition the use by any State agency 
     or instrumentality of a State, or political subdivision of 
     any words, letters, symbols, or emblems which identify an 
     agency or instrumentality of the State or political 
     subdivision;
       (f) repeal the present law requirement that the Department 
     of Health and Human Services obtain a formal declination from 
     the Department of Justice (DOJ) before pursuing a civil 
     monetary penalty case under this provision;
       (g) provide that penalties collected by the Secretary for 
     violations of this provision would be deposited in the Old-
     Age and Survivors Insurance, Health Insurance or 
     Supplementary Medical Insurance Trust Funds as applicable;
       (h) stipulate that no person may reproduce, reprint, or 
     distribute for a fee any 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 prescribed by the 
     Secretary;
       (i) provide that any determination of whether there is a 
     violation of this provision shall be made without regard to a 
     disclaimer;
       (j) require the Commissioner of Social Security and the HHS 
     Secretary to issue three reports to the Committee on Ways and 
     Means and the Committee on Finance on the operation of 
     section 1140 as applicable. The report would specify: (1) the 
     number of complaints of violations of section 1140 received 
     by the Social Security Administration or the Department of 
     Health and Human Services during the period covering the 
     report; (2) the number of cases in which a notice of 
     violation of section 1140 was sent by the Social Security 
     Administration or the Department of Health and Human Services 
     during the period covering the report requesting that an 
     individual cease activities in violation of this section; (3) 
     the number of cases in which a civil monetary penalty was 
     formally proposed in a demand letter during the period 
     covering the report by the Social Security Administration or 
     the Department of Health and Human Services; (4) the total 
     number of civil monetary penalties assessed under this 
     section during the period covered by the report by the Social 
     Security Administration or the Department of Health and Human 
     Services; (5) the number of requests for hearings filed 
     during the period covering the report pursuant to subsection 
     (c)(1) of this section and section 1128A(c)(2) by the Social 
     Security Administration or the Department of Health and Human 
     Services; (6) the disposition during the period covering the 
     report of hearings filed pursuant to sections 1140(c)(1) and 
     1128A(c) (2), and (7) the total amount of civil monetary 
     penalties collected under this section and deposited into the 
     Federal Old-Age and Survivors Insurance, Health Insurance and 
     Supplementary Medical Insurance Trust Funds, as applicable, 
     during the period covering the report. The reports would be 
     due December 1, 1995, December 1, 1997, and December 1, 1999;
       (k) specify that the provisions in section 1140 may be 
     enforced by the Office of Inspector General of the Social 
     Security Administration or the Office of Inspector General of 
     the Department of Health and Human Services. The provisions 
     for Social Security and the Department of Health and Human 
     Services would be effective for violations occurring after 
     March 31, 1995.
       The provision would prohibit the use in advertisements, 
     solicitations, and other business activities of words, 
     abbreviations, titles, letters, symbols, or emblems 
     associated with the Department of the Treasury (and services, 
     bureaus, offices or subdivisions of the Department, including 
     the Internal Revenue Service) in a manner which could 
     reasonably be interpreted as conveying a connection with or 
     approval by the Department of the Treasury.
       The bill would establish civil penalty of not more than 
     $5,000 per violation (or not more than $25,000 in the case of 
     a broadcast or telecast). In addition, the bill would 
     establish a criminal penalty of not more than $10,000 (or not 
     more than $50,000 in the case of a broadcast or telecast) or 
     imprisonment of not more than one year, or both, in any case 
     in which the prohibition is knowingly violated. Any 
     determination of whether there is a violation would be made 
     without regard to the use of a disclaimer of affiliation with 
     the Federal Government. The Secretary of the Treasury would 
     be required to provide to the Committee on Ways and Means and 
     the Committee on Finance, no later than May 1, 1996, a report 
     on enforcement activities relating to the implementation of 
     the provision.
       Effective date.--The provisions would apply with respect to 
     violations occurring after the date of enactment.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill.
       Effective date.--The provisions would apply with respect to 
     violations occurring after the date of enactment.


15. increased penalties for unauthorized disclosure of social security 
                              information

 (Sec. 214 of the House bill and sec. 313 of the conference agreement)

     Present law
       Each year, the Social Security Administration (SSA) 
     receives and maintains earnings information, including the 
     names and addresses of employers, on over 130 million working 
     Americans in its computer system. Employers are required to 
     file annually with the Social Security Administration copies 
     of their workers' W-2 statements. The statements contain the 
     worker's Social Security numbers and the amount of wages the 
     workers received during the year. In addition, each SSA file 
     contains an individual's birth certificate information, such 
     as date of birth, father's name and mother's maiden name. For 
     those receiving Social Security benefits, the file contains a 
     current address and monthly benefit amounts.
       The Social Security Act includes provisions which prohibit 
     the unauthorized disclosure of information contained in 
     Social Security Administration files. The Act provides that 
     any person who violates these provisions and makes an 
     unauthorized disclosure can be found guilty of a misdemeanor 
     and, upon conviction, punished by a fine not exceeding $1,000 
     or by imprisonment not exceeding one year, or both.
     House bill
       The provision stipulates that unauthorized disclosure of 
     information and fraudulent attempts to obtain personal 
     information under the Social Security Act would be a felony. 
     Each occurrence of a violation would be punishable by a fine 
     not exceeding $10,000 or by imprisonment not exceeding five 
     years, or both.
       Effective date.--The provision would apply to violations 
     occurring on or after the date of enactment.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill.
       Effective date.--The provision would apply to violations 
     occurring on or after the date of enactment.


16. increase in authorized period for extension of time to file annual 
                            earnings report

 (Sec. 215 of the House bill and sec. 314 of the conference agreement)

     Present law
       In general, individuals under age 70 who receive Social 
     Security retirement or survivors benefits must file an annual 
     report of their earnings with the Social Security 
     Administration for any taxable year in which their earnings 
     or wages exceed the annual exempt amount of earnings under 
     the Social Security earnings test. These reports are due to 
     be filed by the same date as Federal income tax returns, the 
     fifteenth day of the fourth month after the close of the 
     taxable year (normally April 15). Individuals may be granted 
     a reasonable extension of time for filing an earnings report 
     if there is a valid reason for delay, but not more than 3 
     months. An extension of time for filing an income tax return 
     may be granted for up to 4 months.
     House bill
       The time for which an extension could be granted for filing 
     an earnings report would be increased to 4 months.
       Effective date.--The provision would be effective with 
     respect to reports of earnings for taxable years ending on or 
     after December 31, 1994.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill.
       Effective date.--The provision would be effective with 
     respect to reports of earnings for taxable years ending on or 
     after December 31, 1994.


  17. Extension of Disability Insurance Program Demonstration Project 
                               Authority

 (Sec. 216 of the House bill and sec. 315 of the conference agreement)

     Present law
       Section 505(a) of the Social Security Disability Insurance 
     Amendments of 1980 (P.L. 96-265), as extended by the Omnibus 
     Budget Reconciliation Act of 1989 (P.L. 101-508), authorizes 
     the Secretary of Health and Human Services to waive 
     compliance with the benefit requirements of titles II and 
     XVIII for purposes of conducting work incentive demonstration 
     projects to encourage disabled beneficiaries to return to 
     work. The authority to waive compliance applies to projects 
     initiated prior to June 10, 1993. A final report is due no 
     later than October 1, 1993.
     House bill
       The Secretary's authority to initiate disability work 
     incentive demonstration projects that waive compliance with 
     benefit provision (as provided in P.L. 96-265) would be 
     extended through June 9, 1996. A final report would be due no 
     later than October 1, 1996.
       Effective Date.--The provisions would be effective upon 
     enactment.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill.
       Effective date.--The provisions would be effective upon 
     enactment.


 18. Cross-Matching of Social Security Account Number Information And 
    Employer Identification Number Maintained by the Department of 
                              Agriculture

 (Sec. 217 of the House bill and sec. 316 of the conference agreement)

     Present law
       The Department of Agriculture is allowed to collect and 
     maintain a list of names, Social Security numbers and 
     employer identifications numbers of the owners and officers 
     of retail grocery stores which redeem food stamps. The list 
     is used to keep track of grocery store operators who have 
     been sanctioned for violations under the Food Stamp Act.
     House bill
       The provision would permit the Secretary of Agriculture to 
     share the list of names and identifying numbers with other 
     Federal agencies which otherwise have access to Social 
     Security account numbers for the purpose of effective 
     administration and enforcement of the Food Stamp Act of 1977 
     or for investigating violations of other Federal laws, or 
     enforcement of such laws. The Secretary of Agriculture must 
     restrict access to Social Security account numbers obtained 
     pursuant to this provision to officers and employees of 
     United States whose duties or responsibilities require access 
     for such purposes.
       Effctive date.--The provision would be effective upon 
     enactment.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill.
       Effective date.--The provision would be effective upon 
     enactment.


  19. Certain Transfers to Railroad Retirement Account Made Permanent

 (Sec. 218 of the House bill and sec. 317 of the conference agreement)

     Present law
       A portion of the railroad retirement tier 2 benefits are 
     included in gross income of recipients (similar to the 
     treatment accorded recipients of private pensions) for 
     Federal income tax purposes. The proceeds from the income 
     taxation of railroad tier 2 benefits received prior to 
     October 1, 1992, have been transferred from the General Fund 
     of the Treasury to the railroad retirement account. Proceeds 
     from the income taxation of benefits received after September 
     30, 1992, remain in the General Fund.
     House bill
       The transfer of proceeds from the income taxation of 
     railroad retirement tier 2 benefits from the General Fund of 
     the Treasury to the railroad retirement account would be made 
     permanent.
       Effective date.--The provision would be effective for 
     income taxes on benefits received after September 30, 1992.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill.
       Effective date.--The provision would be effective for 
     income taxes on benefits received after September 30, 1992.


    20. Authorization for Use of Social Security Account Numbers by 
Department of Labor in Administration of Federal Workers' Compensation 
                                  Laws

 (Sec. 219 of the House bill and sec. 318 of the conference agreement)

     Present law
       The Privacy Act of 1974 prohibits a Federal agency from 
     using the Social Security number as an identification number 
     unless it is specifically permitted by statute. There is no 
     specific statutory authorization to permit the Department of 
     Labor to use the Social Security number as an identification 
     number.
     House bill
       The provision would amend section 205 of the Social 
     Security Act to permit the Department of Labor to use the 
     Social Security number as the claim identification number for 
     workers' compensation claims.
       Effective date.--The provision would be effective upon 
     enactment.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill.
       Effective date.--The provision would be effective upon 
     enactment.


21. Coverage under FICA of Federal Employees Transferred Temporarily to 
                      International Organizations

 (Sec. 220 of the House bill and sec. 319 of the conference agreement)

     Present law
       Federal employees participating in the Civil Service 
     Retirement System are entitled to retain retirement coverage 
     rights and benefits when they are temporarily loaned by a 
     Federal agency to an international organization.
       The definition of employment in the Social Security Act 
     prohibits Federal employees participating in the Federal 
     Employees Retirement System (FERS) or the Foreign Service 
     Pension System (FSPS) (which in general provide Federal 
     employees hired on or after January 1, 1984, with both Social 
     Security coverage and a supplemental government pension) from 
     continuing to contribute to Social Security if they transfer 
     to international organizations.
     House bill
       The provision would amend section 210 of the Social 
     Security Act and section 3121 of the Internal Revenue Code of 
     1986 to cover, in certain cases, service performed in the 
     employ of an international organization pursuant to a 
     transfer from a Federal agency under the definition of 
     employment. Under this provision, the employing agency would 
     be responsible for reporting the employee's wages and for 
     paying the employer's share of FICA. The employee would be 
     responsible for paying the employee's share.
       Effective date.--The provision would apply with respect to 
     service performed after the calendar quarter following the 
     calendar quarter of enactment.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill.
       Effective date.--The provision would apply with respect to 
     service performed after the calendar quarter following the 
     calendar quarter of enactment.


   22. 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. 221 of the House bill and sec. 320 of the conference agreement)

     Present law
       The Mutual Educational and Cultural Exchange Act of 1961 
     (P.L. 87-256) established section 101(a)(15)(J) of the 
     Immigration and Nationality Act under which so-called J visas 
     are authorized to be issued for a limited period of time to 
     aliens who are bona fide students, scholars, trainees, 
     teachers, professors, research assistants, specialists, or 
     leaders in a field of specialized knowledge or skill.
       The 1961 Act also provided that wages paid to individuals 
     who enter the country on a J visa would be exempt from FICA, 
     FUTA, and Railroad Retirement Act taxes. In addition, 
     employers who hire J visa holders are not required to receive 
     certification from the Department of Labor that an 
     insufficient number of U.S. workers are available to meet 
     their needs.
       The Immigration Act of 1990 added section 101(a)(15)(Q), 
     which provides for the issuance of a visa to ``an alien 
     having a residence in a foreign country which he has no 
     intention of abandoning who is coming temporarily (for a 
     period not to exceed 15 months) to the United States as a 
     participant in an international cultural exchange program 
     approved by the Attorney General for the purpose of providing 
     practical training, employment, and the sharing of the 
     history, culture, and traditions of the country of the 
     alien's nationality and who will be employed under the same 
     wages and working conditions as domestic workers.''
       The Internal Revenue Code presently does not exempt wages 
     paid to individuals who enter the U.S. under Q visas from 
     FICA, FUTA, or Railroad Act taxes.
     House bill
       The provision amends the Internal Revenue Code to exclude 
     wages paid to aliens holding Q visas from FICA, FUTA, and 
     Railroad Retirement Act taxes, and, for income tax purposes, 
     treats their income in the same manner as income received by 
     aliens holding visas issued pursuant to section 
     101(a)(15)(J).
       Effective date.--The provision would take effect with the 
     calendar quarter following the calendar quarter of enactment.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill.
       Effective date.--The provision would take effect with the 
     calendar quarter following the calendar quarter of enactment.


         23. Study Rising Cost of Disability Insurance Benefits

                      (Sec. 222 of the House bill)

     Present law
       In their 1993 and 1994 annual report to Congress, the 
     Social Security Board of Trustees reported that, under 
     intermediate economic assumptions, the Disability Insurance 
     Trust Fund would become insolvent during 1995. To address 
     this problem, the Trustees recommended a reallocation of the 
     Social Security payroll tax rate from the OASI Trust Fund to 
     the DI Trust Fund.
       In addition, to the reallocation, the Board recommended 
     that a significant research effort be undertaken to establish 
     whether higher-than-expected DI program costs are a temporary 
     trend or longer-term phenomenon.
     House bill
       The Secretary of Health and Human Services would be 
     required to conduct a comprehensive study of the reasons for 
     rising costs in the Disability Insurance program. The study 
     would determine the relative importance of: (a) increased 
     numbers of applications for benefits, (b) higher rates of 
     benefit allowances, and (c) decreased rates of benefit 
     terminations in increasing DI program costs. It would also 
     identify, to the extent possible, underlying social, 
     economic, demographic, programmatic, and other trends 
     responsible for changes in DI applications, allowances, and 
     terminations. No later than December 31, 1994, the Secretary 
     would be required to issue a report to the House Committee on 
     Ways and Means and the Senate Committee on Finance 
     summarizing the results of the study and making any 
     recommendations for legislative changes which the Secretary 
     determines appropriate. The study would be due no later than 
     December 31, 1994.
       Effective date.--Upon enactment.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the Senate amendment 
     (i.e., no provision)


                 24. commission on childhood disability

   (Sec. 223 of House bill and sec. 202 of the conference agreement)

     Present law
       No provision.
     House bill
       The Secretary would be directed to appoint a Commission on 
     the Evaluation of Disability in Children, consisting of not 
     less than 9 but not more than 15 members including recognized 
     experts in relevant fields of medicine; recognized experts in 
     psychology, education and rehabilitation, law, administration 
     of disability programs; social insurance; and other experts 
     determined appropriate by the Secretary.
       The Commission would conduct a study, in consultation with 
     the National Academy of Sciences, on the effect of the 
     current Supplemental Security Income definition of 
     disability, as it applies to children under the age of 18 and 
     their receipt of services, including the effect of using an 
     alternative definition.
       The study shall include issues of (1) whether the need by 
     families for assistance in meeting the high costs of medical 
     care for children with serious physical or mental impairments 
     might appropriately be met through expansion of Federal 
     health assistance programs; (2) the feasibility of providing 
     benefits to children through non-cash means, including 
     vouchers, debit cards, and electronic benefits transfer 
     systems; (3) the extent to which SSA can involve private 
     organizations in an effort to increase the provision of 
     social services, education, and vocational instruction with 
     the aim of promoting independence and the ability to engage 
     in substantial gainful activity; (4) the feasibility of 
     providing retroactive SSI benefits pursuant to the Zebley 
     decision on a prorated basis or by means of a packaged trust; 
     (5) 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 (6) such other 
     issues as the Secretary determines appropriate.
       The Commission would submit a report on the results of this 
     study, together with any recommendations, to the Committees 
     on Finance and Ways and Means, no later than November 30, 
     1995.
       Effective date.--Upon enactment.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement generally follows the House bill, 
     but broadens the study to include: (1) the desirability and 
     methods of increasing the extent to which benefits are used 
     in the effort to assist disabled children in achieving 
     independence and engaging in substantial gainful activity, 
     and (2) the effects of the current program on disabled 
     children and their families.
       The conferees expect that the Commission, in conducting its 
     study, will hold public hearings to hear the views and 
     perspectives of all parties who are interested in or 
     concerned about the SSI childhood disability program, 
     including parents of children who receive benefits, 
     educators, and representatives of non-profit organizations 
     serving children with physical and mental disabilities.
       Effective date.--Upon enactment.


 25. Disregard of Deemed Income and Resources of Ineligible Spouse in 
          Determining Continued Eligibility under Section 1619

                        (Sec. 224 of House bill)

     Present law
       Under section 1619(a) of the Social Security Act, SSI 
     benefits continue for those working and earning above the 
     substantial gainful activity level, which is currently $500 
     per month, as long as there is no medical improvement in the 
     disabling condition. Benefits decline at a rate of $1 for 
     each additional $2 earned after disregarding the first $65 of 
     earned income and the first $20 of unearned income. In 
     general, the point at which a recipient, who has at least $20 
     in monthly unearned income, would be ineligible for cash SSI 
     benefits in a month would be the sum of $85 plus twice the 
     sum of the Federal benefit and State supplement, if any. For 
     1994, the ``breakeven point'' for an individual is $977 per 
     month without a State supplement. For States with a 
     supplement, the breakeven point increases by $2 for every $1 
     in State supplement.
       Under section 1619(b), SSI recipients can continue on 
     Medicaid even if their earnings cause their income to exceed 
     the breakeven point and they no longer receive cash SSI 
     benefits. In 209(b) States, this does not apply. However, in 
     most States, Medicaid continues as long as the SSI recipient: 
     (1) continues to be blind or disabled; (2) except for 
     earnings, continues to meet all of the eligibility 
     requirements; (3) is seriously inhibited from continuing work 
     by termination of eligibility of Medicaid; and (4) has 
     earnings insufficient to provide a reasonable equivalent to 
     cash SSI benefits, Medicaid, and publicly funded attendant 
     care that would have been available if he or she did not have 
     earnings.
       In making determinations on the fourth criterion above, SSA 
     compares the individual's gross earnings to a ``threshold'' 
     amount. The threshold amount is the sum of the break even 
     level for gross earnings of cash benefits for an individual 
     with no other income living in his or her own household plus 
     the average Medicaid expenditures for disabled SSI cash 
     recipients for the State of residence. If the recipient's 
     gross earnings exceeds the threshold, an individualized 
     threshold is calculated which considers the person's actual 
     Medicaid use, State supplement rate, and publicly-funded 
     attendant care. In other words, under the fourth criterion, 
     Medicaid eligibility continues until the individual's 
     earnings reach a higher plateau which takes into account the 
     person's ability to afford medical care, as well as his or 
     her normal living expenses.
       An eligible spouse's income and resources are deemed to 
     include the income and resources of his or her ineligible 
     spouse with whom he or she lives. In some cases, SSI 
     recipients who are working and are eligible for Medicaid 
     under section 1619(b) may become ineligible for Medicaid 
     because they marry a person who has sufficient income to 
     render the SSI recipient ineligible for Medicaid. In other 
     cases, the SSI recipient's ineligible spouse might receive 
     additional income which makes the SSI recipient ineligible 
     for Medicaid under the deeming rules.
     House bill
       In determining an individual's eligibility for Medicaid 
     pursuant to section 1619(b) there would be disregarded (in 
     addition to amounts disregarded under current law): (1) the 
     net income of the individual's ineligible spouse to the 
     extent the spouse's net income does not exceed twice the 
     threshold amount determined for the individual, and (2) the 
     ineligible spouse's resources up to the State's spousal 
     impoverishment resource amount (as defined in section 
     1924(f)(2) of the Social Security Act).
       Effective date.--October 1, 1995.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the Senate amendment 
     (i.e., no provision).


26. Plans for Achieving Self-Support Not Disapproved Within 60 Days to 
                           be Deemed Approved

                        (Sec. 225 of House bill)

     Present law
       Under a plan for achieving self-support (PASS) certain 
     income and resources are not taken into account in 
     determining eligibility for or the amount of SSI benefits. An 
     approved PASS allows a person who is blind or disabled to set 
     aside the income and resources needed to achieve a work goal. 
     The funds set aside can be used to pay for education, 
     vocational training, or starting a business. The recipient 
     must have a feasible work goal, a specific savings and 
     spending plan, and must provide for a clearly identifiable 
     accounting for the funds which are set aside. The individual 
     must then follow the plan and negotiate revisions as needed.
       SSA regulations provide the basic rules for a PASS. Under 
     these rules, the individually designed plan can be for an 
     initial period of at most 18 months but an 18-month extension 
     can be obtained. For participants engaged in lengthy 
     education or training programs, an additional 12-month 
     extension can be obtained. All plans must be approved by SSA 
     before the income and resource exclusions can be excluded. If 
     the recipient attains his or her goal, fails to follow the 
     plan, or time expires, the income and resource exclusions are 
     again countable.
     House bill
       A plan for achieving self-support (PASS) would be deemed to 
     be approved if SSA has not acted upon a recipient's 
     application within 60 days and shall be deemed to be approved 
     until 6 months after subsequent disapproval.
       Effective date.--January 1, 1995.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the Senate amendment 
     (i.e., no provision), but the conferees request that the 
     General Accounting Office conduct a study of the PASS program 
     and procedures since little information is available at this 
     time. The study should include, to the extent available, data 
     for the last five years that show the number and 
     characteristics of individuals who have applied for a plan, 
     the number and characteristics of those who plans have been 
     approved, the kinds of plans that have been approved and 
     their duration, the success of individuals in fulfilling 
     their plans, and the extent to which individuals who have 
     completed a PASS have become economically self-sufficient. 
     The GAO should also study whether improvements can or should 
     be made in the PASS program or in the process used to 
     approved proposed plans. Findings and recommendations should 
     be reported to the Committee on Finance and Ways and Means.


   27. Temporary Authority to Approve a Limited Number of Plans for 
           Achieving Self-Support that Include Housing Goals

                      (Sec. 226 of the House bill)

     Present law
       A PASS allows an SSI recipient to shelter income and 
     resources from limits if the funds are set aside to help him 
     or her achieve a work goal. Funds may be set aside for 
     education, vocational training, or starting a business.
     House bill
       Plans for achieving self-support would be expanded to 
     include housing goals in addition to the current work goals 
     under a 42-month demonstration.
       A report on activities under this authority would be due 
     within 12 months after the end of the 5-year period that 
     begins on January 1, 1995.
       Effective date.--January 1, 1995.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the Senate amendment 
     (i.e., no provision).


              28. Regulations Regarding Completion of PASS

 (Sec. 227 of the House bill and sec. 203 of the conference agreement)

     Present law
       Under current plan for achieving self-support (PASS) 
     regulations, an SSI recipient with a PASS may be eligible for 
     its income and resource exclusions for 18 months, followed by 
     two possible extensions of 18 and 12 months, respectively. An 
     individual involved in a lengthy education program, could 
     receive a PASS for up to 4 years.
     House bill
       SSA would be required to take into account the difficulty 
     of achieving self-support based on individual needs in 
     determining the time limit on a PASS.
       Effective date.--January 1, 1995.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill, with a 
     clarification instructing SSA to take into account the length 
     of time the individual will need to reach the individual's 
     employment goal within such reasonable period as the 
     Secretary establishes, and other factors as are determined by 
     the Secretary to be appropriate.
       Effective date.--January 1, 1995.


   29. Treatment of Certain Grant, Scholarship, or Fellowship Income

                      (Sec. 228 of the House bill)

     Present law
       Grant, scholarship, and fellowship income are treated as 
     unearned income. The portion of this kind of income that is 
     received for use in paying the cost of tuition and fees at 
     any educational institution is excluded from income.
     House bill
       Grant, scholarship, and fellowship income would be treated 
     as earned income without regard to the purpose of its use.
       Effective date.--Applies to eligibility determinations for 
     any month beginning after the second month following the 
     month of enactment.
     Senate Amendment
       No provision.
     Conference agreement
       The conference agreement follows the Senate amendment 
     (i.e., no provision).


          30. ssi eligibility for students temporarily abroad

 (Sec. 229 of the House bill and sec. 204 of the conference agreement)

     Present law
       A recipient who is outside the United States for a full 
     calendar month or more and who is not a child living outside 
     the United States with a parent in the military service, is 
     not eligible for SSI benefits for such month or months. A 
     person who has been outside the United States for 30 
     consecutive days or more is not considered to be back until 
     he or she has spent 30 consecutive days, in the United 
     States. After an absence of 30 consecutive days, SSI 
     eligibility may resume effective with the day following the 
     30th day of continuous presence in the United States, if the 
     individual continues to meet all other eligibility criteria.
     House bill
       SSI recipients who travel outside the United States would 
     be exempt from the calendar month and 30-day time limit if 
     the absence is (1) temporary, and (2) 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.
       Effective date.--January 1, 1995.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill with an 
     amendment limiting eligibility to a period not to exceed one 
     year and only if the program is not available to the 
     individual in the United States. Because of the difficulty 
     faced by the Social Security Administration in administering 
     the SSI program while recipients are outside the United 
     States, the conferees intend that this provision will be used 
     sparingly. An example of a qualifying educational program 
     under this provision would be intensive study programs that 
     lead to fluency in a foreign language through immersion in 
     the cultural and social milieu of a country where the 
     language is spoken. Less intensive programs, which are 
     generally available in the United States, would not qualify.
       Efective date.--January 1, 1995.


31. disregard of cost-of-living increases for continued eligibility for 
                            work incentives

 (Sec. 230 of the House bill and sec. 205 of the conference agreement)

     Present law
       Under section 504 of the Unemployment Compensation 
     Amendments of 1976 (P.L. 94-566), State Medicaid plans are 
     required to provide medical assistance to an individual if he 
     or she: (1) simultaneously received both Social Security and 
     SSI in some month after April 1977; (2) is currently eligible 
     for and receiving OASDI benefits; (3) is currently ineligible 
     for SSI; and (4) receives income that would qualify him or 
     her for SSI after deducting all OASDI cost-of-living 
     adjustment increases received since the last month in which 
     he or she was eligible for both OASDI and SSI. The provision 
     is intended to protect the individual against the loss of 
     Medicaid coverage in many States because of a cost-of-living 
     increase in Social Security benefits. The provision does not 
     explicitly apply to beneficiaries who have Medicaid 
     eligibility under section 1619(b) of the Social Security Act.
     House bill
       This provision amends section 1619(b) of the Social 
     Security Act to explicitly extend to SSI beneficiaries 
     receiving Medicaid under section 1619(b) protection against 
     the loss of Medicaid coverage because of a cost-of-living 
     increase in their Social Security benefits.
       Effective date.--Applies to eligibility determinations for 
     months after December, 1994.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill.
       Efective date.--Applies to eligibility determinations for 
     months after December, 1994.


32. expansion of the authority of the social security administration to 
  prevent, detect, and terminate fraudulent claims for OASDI and SSI 
                                benefits

(Sec. 231 of the House bill, sec. 306 of the Senate amendment, and sec. 
                    206 of the conference agreement)

  a. Prevention of fraud in the SSI program by translators of foreign 
                               languages

     Present law
       No provision.
     House bill
       A translation into English by a third party of a statement 
     made in a foreign language by an applicant for or recipient 
     of SSI benefits shall not be regarded as reliable unless the 
     third party, under penalty of perjury, (1) certifies that the 
     translation is accurate, and (2) discloses the nature and 
     scope of the relationship between the third part and the 
     applicant or recipient.
       Effective date.--October 1, 1994.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill with 
     technical changes, and is expanded to apply to fraud under 
     the OASDI programs.
       Effective date.--October 1, 1994.

   b. Civil monetary penalties in SSI and OASDI cases involving fraud

     Present law
       Federal law provides broad authority for imposing civil 
     penalties against persons who submit fraudulent claims to the 
     Government. There are two applicable Federal statutes. The 
     Civil False Claims Act (CFCA) requires the Government to use 
     the normal judicial process, whereby the Department of 
     Justice initiates a civil action in Federal Court to impose a 
     penalty. The Program Fraud Civil Remedies Act (PFCRA) 
     authorizes an administrative process under which Federal 
     agencies may impose penalties. These statutes are intended to 
     address fraud from a Government-wide perspective, and the 
     process of imposing penalties can be complex and time-
     consuming. Further, the PFCRA is restricted to initial 
     applications for benefits, in some circumstances, which 
     limits its usefulness for SSI and OASDI purposes.
     House bill
       The same authority to impose civil penalties as the 
     Secretary of HHS now has under sections 1128A of the Social 
     Security Act involving false claims in the Medicare and 
     Medicaid programs would be provided for the SSI program. SSA 
     would have direct authority, after approval by the Department 
     of Justice, to impose civil penalties when an individual or 
     entity has been involved in submitting or causing to be 
     submitted any statement that the individual knows or should 
     know is false or misleading, or knows or should know omits a 
     material fact. Each offense involving the SSI program would 
     be subject to a penalty of not more than $5,000 and an 
     assessment, in lieu of damages, of not more than twice the 
     amount of benefits paid as a result of such statement or 
     representation. In addition, medical providers or physicians 
     who commit such offenses with respect to the SSI program 
     could be subject to exclusion from participation in the 
     Medicare and Medicaid programs. The process would be similar 
     to that used under section 1128A with respect to false claims 
     in the Medicare and Medicaid programs. SSA would initiate and 
     investigate cases, refer proposed actions to the Department 
     of Justice for review before proceeding, and adjudicate and 
     impose penalties, assessments, or exclusions. As with section 
     1128A, any person adversely affect by a determination could 
     obtain a review of such determination in the United States 
     Court of Appeals.
       Effective date.--October 1, 1994.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill with 
     technical changes, and is expanded to apply to fraud under 
     the OASDI programs.
       Effective date.--October 1, 1994.

                    c. SSI Fraud Considered a Felony

     Present law
       SSI fraud is punishable by a fine of no more than $1,000 or 
     a prison term of no more than one year, a misdemeanor.
     House bill
       SSI fraud would be punishable by a fine as determined under 
     the general criminal fine statutes, by a prison term of not 
     more than five years, or both. This provision conforms the 
     specific crime of SSI fraud to the criminal sanctions 
     currently available for Social Security Disability Insurance 
     fraud.
       Effective date.--October 1, 1994.
     Senate amendment
       Same as House bill.
       In addition, title II is amended to provide that any person 
     or other entity who is convicted of a violation involving the 
     provision of false statements or representations, if the 
     violation is committed in the role as, or application to 
     become, a representative payee on behalf of another 
     individual, shall be guilty of a felony and be subject to the 
     same penalties as apply to SSI. In any case in which a court 
     determines that a violation includes a willful misuse of 
     funds by such person or entity, the court may also require 
     that full or partial restitution of funds be made to the 
     individual for whom such person or entity was the 
     representative payee.
       An individual or entity convicted of a felony under the 
     representative payee requirements of title XVI may not be 
     certified as a payee under title II.
       In the case of the second or subsequent imposition of an 
     administrative or criminal penalty on any person or other 
     entity under section 208 or section 1632 of the Social 
     Security Act (relating to fraud), the Secretary may exclude 
     such person or entity from participation in any program under 
     title II, V, XVI, XVIII, XIX, and XX of the Social Security 
     Act, and any other Federal program as provided by law.
     Conference agreement
       The conference agreement follows the House bill with an 
     amendment prohibiting persons convicted of SSI fraud from 
     serving as representative payees under title XVI.
       Effective date.--The amendments apply to conduct occurring 
     on or after October 1, 1994.

d. Authority to Redetermine Eligibility in Disability Cases if Fraud is 
 Involved And to Terminate Benefits If There is Insufficient Reliable 
                         Evidence of Disability

     Present law
       SSA is only permitted to terminate SSI benefits under well-
     defined conditions, unless the benefits were obtained 
     fraudulently. The statute provides no guidance on the use of 
     this authority.
     House bill
       An individual's eligibility for SSI disability benefits 
     shall be immediately redetermined, disregarding any 
     unreliable evidence of disability, if there is reason to 
     believe that fraud was involved in the application for 
     benefits, unless a U.S. Attorney or equivalent State 
     prosecutor certifies, in writing, that to do so would create 
     a substantial risk of jeopardizing any current or anticipated 
     criminal proceeding.
       Effective date.--October 1, 1994.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill with 
     technical amendments and is also expanded to apply to fraud 
     in the OASDI programs.
       Effective date.--October 1, 1994.

e. Availability of Recipient Identifying Information From the Inspector 
                General, Social Security Administration

     Present law
       There is no current statutory requirement for the OIG to 
     provide SSI recipient identifying information obtained during 
     a criminal investigation to SSA for administrative action. 
     Such identifying information is transmitted to SSA at such 
     time as the OIG believes it appropriate and often not until 
     the conclusion of a criminal investigation or a Federal or 
     State criminal prosecutorial process. Consequently, SSI 
     benefits continue to be paid during an active investigation 
     or prosecution based on those benefits having been obtained 
     through fraud.
     House bill
       The SSA Inspector General would be required to disclose to 
     SSA recipient identifying information as soon as he has 
     reason to believe that any individual, or group of 
     individuals, have secured SSI benefits in a fraudulent 
     manner. This requirement would not apply if a U.S. Attorney 
     or State prosecutor who has jurisdiction to file a criminal 
     action against any of the parties involved certifies that 
     disclosure of SSI recipient information by the IG would 
     jeopardize the criminal prosecution of the individual who is 
     the subject of the investigation.
       Effective date.--October 1, 1994
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill with 
     technical amendments and is also expanded to apply to fraud 
     under the OASDI programs.
       Effective date.--October 1, 1994.

   f. Authority To Use Available Pre-admission Immigrant and Refugee 
                          Medical Information

     Present law
       No provision.
     House bill
       SSA would be required to request medical information from 
     the Immigration and Naturalization Service or the Centers for 
     Disease Control which they may have with respect to any alien 
     who has applied for SSI benefits to the extent the 
     information is relevant to determining eligibility.
       Effective date.--October 1, 1994.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill with 
     technical amendments.
       Effective date.--October 1, 1994.

               g. Annual Reports on Reviews of SSI Cases

     Present law
       No provision.
     House bill
       SSA would be required to annually report to the Committee 
     on Ways and Means and the Committee on Finance on the extent 
     to which it has exercised its authority to review SSI cases 
     and the extent to which the cases reviewed were those that 
     involved a high likelihood or probability of fraud.
       Effective date.--October 1, 1994.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill and is also 
     expanded to apply to fraud under the OASDI programs.
       Effective date.--Upon enactment.

                           h. Effective Date

     Present law
       No provision.
     House bill
       In general these provisions would take effect on October 1, 
     1994. The provisions dealing with civil monetary penalties is 
     SSI cases involving fraud, with the treatment of SSI fraud as 
     a felony, and with annual reports of reviews of SSI cases 
     would be effective upon enactment.
     Senate amendment
       No provision.
     Conference agreement
       In general, these provisions would take effect on October 
     1, 1994. The provision dealing with the annual reports of 
     reviews of SSI and OASDI cases would be effective upon 
     enactment.


 33. Disability Review Required for SSI Recipients Who are 18 Years of 
                                  Age

 (Sec. 232 of the House bill and sec. 207 of the conference agreement)

     Present law
       Under current law, all disabled Social Security 
     beneficiaries are required to undergo periodic reviews to 
     determine whether they continue to be disabled. There is no 
     comparable provision in the SSI program.
       A needy child under the age of 18 years old who has an 
     impairment of comparable severity with that of an adult may 
     be considered, disabled and eligible for SSI benefits. To be 
     found disabled, a child must have a medically determinable 
     impairment that substantially reduces his or her ability to 
     independently, appropriately, and effectively engage in age-
     appropriate activities. This impairment must be expected to 
     result in death or to last for a continuous period of at 
     least 12 months.
       Under the adult disability determination process, 
     individuals whose impairments do not ``meet or equal'' the 
     listings of impairments in regulations are subjected to an 
     assessment of residual functional capacity. SSA determines 
     whether adults are able to do their past work or whether they 
     are able to do any substantial gainful work. If they cannot 
     do either one, they are disabled.
       Under the disability determination process for children, 
     individuals whose impairments do not ``meet or equal'' the 
     listings of impairments in regulations are subjected to an 
     individualized functional assessment. This assessment 
     examines whether the children can engage in age-appropriate 
     activities effectively. If it is found that the children's 
     impairments are on comparable severity to an adult's without 
     assessing past work or ability to do substantial gainful 
     work, the children are disabled.
     House bill
       SSA would be required to re-evaluate under adult disability 
     criteria the eligibility of children receiving SSI after they 
     reach 18 years old and before they are 19 years old.
       Effective date.--Applies to recipients attaining the age of 
     18 years old in or after the ninth month following the month 
     of enactment.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill with an 
     amendment requiring SSA to conduct CDRs for a minimum of one-
     third of the children reaching age 18 in each of fiscal years 
     1996, 1997, and 1998. SSA will be required to report to 
     Congress no later than October 1, 1998 on the activities 
     conducted under this requirement.
       Effective date.--October 1, 1995.


                   34. Continuing Disability Reviews

 (Sec. 233 of the House bill and sec. 208 of the conference agreement)

     Present law
       Title II of the Social Security Act requires the Secretary 
     of Health and Human Services to conduct periodic continuing 
     disability reviews (CDRs) of disabled beneficiaries. For 
     those beneficiaries whose impairments are not permanent, CDRs 
     must generally be performed every three years. Beneficiaries 
     with permanent disabilities receive CDRs at such times as the 
     Secretary determines appropriate.
       CDRs are funded as part of the Social Security 
     Administration's administrative budget, which is subject to 
     annual appropriations.
     House bill
       The provision would require the Secretary to conduct 
     periodic continuing disability reviews on SSI recipients in 
     the same manner as such reviews are currently required for DI 
     beneficiaries.
       Effective date.--October 1, 1995.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill with an 
     amendment requiring SSA to conduct CDRs for a minimum of 
     100,000 SSI recipients per year for 3 years. SSA will be 
     required to report to Congress no later than October 1, 1998.
       Effective date.--October 1, 1995.


                 35. Technical and Clerical Amendments

 (Sec. 234 of the House bill and sec. 321 of the conference agreement)

     Present law
       Title II of the Social Security contains a number of 
     typographical errors, erroneous references, circular cross 
     references, inconsistent margination, incorrect punctuation, 
     and references to outdated versions of the Internal Revenue 
     Code. In addition, present law includes certain inconsistent 
     statutory provisions.
     House bill
       Technical changes would be made to correct inconsistencies 
     in provisions relating to fees for claimant representatives, 
     rounding procedures for indexing certain program amounts, and 
     deemed average total wages, among others. These corrections 
     would not change the meaning of any section of the Social 
     Security Act.
       Effective date.--In general, the provision would be 
     effective upon enactment.
     Senate amendment
       No provision.
     Conference agreement
       The conference agreement follows the House bill with an 
     amendment to the attorney fee provision.
       Effective date.--In general, the provision would be 
     effective upon enactment.


        36. Exemption from Adjustment in Pass-Along Requirements

                 (Sec. 209 of the conference agreement)

     Present law
       Section 1618 of the Social Security Act requires that 
     States making supplementary payments to Supplemental Security 
     Income recipients ``pass along'' cost-of-living increases in 
     the Federal benefit. There are two options for the States in 
     meeting the ``pass along'' requirement: (1) the aggregate 
     spending level option, under which States may make 
     supplementary payments in the current 12-month period that 
     are no less, in the aggregate, than were made in the previous 
     12-month period; or (2) the individual payment level option, 
     under which a State may maintain the supplementary payment 
     levels that were in effect for categories of individual 
     recipients in March 1983.
     House bill
       No provision.
     Senate amendment.
       No provision.
     Conference agreement
       For the purpose of determining under the ``aggregate 
     spending level option,'' whether a State's expenditures for 
     supplementary payments during a 12-month period are not less 
     than its expenditures for such payments in the preceding 12-
     month period, retroactive SSI payments made to children 
     qualifying under the Zebley court decision may, pursuant to a 
     State's one-time option, be excluded from the computation of 
     the State's expenditures.
       Effective date.--The provision would be effective with 
     respect to increases in the level of SSI benefits whether 
     occurring upon, before, and after the date of enactment.
                                                    U.S. Congress,


                                  Congressional Budget Office,

                                   Washington, DC, August 4, 1994.
     Hon. Sam Gibbons,
     Acting Chairman, Committee on Ways and Means, House of 
         Representatives, Washington, DC.
       Dear Mr. Chairman: The Congressional Budget Office (CBO) 
     has prepared the enclosed cost estimate for the conference 
     agreement on H.R. 4277, the Social Security Administrative 
     Reform Act of 1994. The act would establish the Social 
     Security Administration as an independent agency and make 
     reforms to the payment of Social Security Disability 
     Insurance and Supplemental Security Income to persons 
     disabled as a result of drug addiction or alcoholism.
       Enactment of H.R. 4277 would affect direct spending and 
     receipts and thus would be subject to pay-as-you-go 
     procedures under section 252 of the Balanced Budget and 
     Emergency Deficit Control Act of 1985.
       This estimate was prepared based on draft legislative 
     language and is subject to change pending receipt of final 
     legislation. If you wish further details on this estimate, we 
     will be pleased to provide them. The CBO staff contacts are 
     Paul Cullinan and Patrick Purcell, who can be reached at 226-
     2820.
           Sincerely,
                                                     James L. Blum
                                       (For Robert D. Reischauer).
       Enclosure.

               TABLE 1.--DETAILS OF FEDERAL GOVERNMENT COSTS OF CONFERENCE AGREEMENT ON H.R. 4277               
                                    [By fiscal year, in millions of dollars]                                    
----------------------------------------------------------------------------------------------------------------
                                        1995         1996         1997         1998         1999        Total   
----------------------------------------------------------------------------------------------------------------
TITLE I--ESTABLISH SOCIAL SECURITY                                                                              
 ADMINISTRATION AS AN INDEPENDENT                                                                               
              AGENCY                                                                                            
                                                                                                                
Subject to Appropriation\1\.......        (\2\)            1            1            1            1            3
  TITLE II--PROGRAM IMPROVEMENTS                                                                                
     RELATING TO OASDI AND SSI                                                                                  
                                                                                                                
201. Restrictions on Benefits                                                                                   
 Based on Disability of Substance                                                                               
 Abusers:                                                                                                       
    Direct Spending...............                                                                              
      OASDI.......................          -73          -35          -16          -33          -85         -242
      SSI.........................          -13           -9          -11         -266         -299         -598
      Medicare....................            0           -1           -2           -3           -4          -10
      Medicaid....................            0           -2           -3           -4           -4          -13
      Offsets.....................            1            1            1           26           30           60
                                   -----------------------------------------------------------------------------
        Subtotal..................          -85          -46          -31         -280         -362         -803
    Administrative Costs Subject                                                                                
     to Appropriation\1\                                                                                        
      OASDI.......................           35           51           71           39           37          233
      SSI.........................        (\2\)        (\2\)        (\2\)           20           20           40
    Administrative Costs Subject                                                                                
     to Appropriation\3\                                                                                        
      OASDI.......................           11           45           91          115          129          391
202. Commission on Childhood                                                                                    
 Disability Subject to                                                                                          
 Appropriation....................            1            1        (\2\)            0            0            2
203. Regulations Regarding                                                                                      
 Completion of PASS Direct                                                                                      
 Spending.........................        (\2\)        (\2\)        (\2\)        (\2\)        (\2\)        (\2\)
204. SSI Eligibility for Students                                                                               
 Temporarily Abroad Direct                                                                                      
 Spending.........................        (\2\)        (\2\)        (\2\)        (\2\)        (\2\)        (\2\)
205. Disregard of Cost-of-living                                                                                
 Increases for Continued                                                                                        
 Eligibility for Work Incentives                                                                                
 Direct Spending..................        (\2\)        (\2\)        (\2\)        (\2\)        (\2\)        (\2\)
206. Detection and Prevention of                                                                                
 Fraud Direct Spending............        (\2\)        (\2\)        (\2\)        (\2\)        (\2\)        (\2\)
207. Disability Review for                                                                                      
 Children Reaching 18 Years Old:                                                                                
    SSI...........................            0           -3           -7          -15          -15          -40
    Medicaid......................            0           -1           -5          -10          -10          -26
    Offsets.......................            0            0            1            1            2            4
                                   -----------------------------------------------------------------------------
      Subtotal....................            0           -4          -11          -24          -23          -62
    Administrative Costs Subject                                                                                
     to Appropriation.............            0            8           10           10            3           31
208. Continuing Disability Reviews                                                                              
 for SSI Recipients Direct                                                                                      
 Spending:                                                                                                      
    SSI...........................            0           -7          -20          -35          -45         -107
    Medicaid......................            0           -5          -15          -30          -40          -90
    Offsets.......................            0            1            3            3            5           12
                                   -----------------------------------------------------------------------------
      Subtotal....................            0          -11          -32          -62          -80         -185
    Subject to Appropriation......            0           35           40           40           30          145
209. Exemption from Pass-along                                                                                  
 Requirements Direct Spending.....            0            0            0            0            0            0
 TITLE III--MISCELLANEOUS PROGRAM                                                                               
           IMPROVEMENTS                                                                                         
                                                                                                                
301. Issuance of Physical                                                                                       
 Documents in the Form of Bonds,                                                                                
 Notes, or Certificates to Social                                                                               
 Security Trust Funds:                                                                                          
    Subject to Appropriation\1\...            0            0            0            0            0            0
302. GAO Study Regarding Telephone                                                                              
 Access:                                                                                                        
    Subject to Appropriation\1\...            0            0            0            0            0            0
303. Expand FICA Exemption for                                                                                  
 Election Workers:                                                                                              
    OASDI Revenue.................           -7          -15          -15          -15          -15          -66
    HI Revenue\4\.................           -2           -3           -3           -3           -3          -15
                                   -----------------------------------------------------------------------------
      Subtotal....................           -9          -18          -18          -18          -18          -81
    Income Tax Offset.............            1            2            2            2            2            8
                                   -----------------------------------------------------------------------------
      Total Net Revenue...........           -8          -16          -16          -16          -16          -73
304. Use of Social Security                                                                                     
 Numbers for Juries:                                                                                            
    Subject to Appropriation\1\...            0            0            0            0            0            0
305. Coverage for Police and                                                                                    
 Firefighters:                                                                                                  
    OASDI Revenue.................            0            0        (\2\)        (\2\)        (\2\)        (\2\)
    HI Revenue\4\.................            0            0        (\2\)        (\2\)        (\2\)        (\2\)
                                   -----------------------------------------------------------------------------
      Total Net Revenue...........            0            0        (\2\)        (\2\)        (\2\)        (\2\)
306. Exemption for Certain                                                                                      
 Ministers:                                                                                                     
    OASDI Revenue.................        (\2\)        (\2\)        (\2\)        (\2\)        (\2\)        (\2\)
    HI Revenue\4\.................        (\2\)        (\2\)        (\2\)        (\2\)        (\2\)        (\2\)
                                   -----------------------------------------------------------------------------
      Total Net Revenue...........        (\2\)        (\2\)        (\2\)        (\2\)        (\2\)        (\2\)
307. Totalization Benefits and the                                                                              
 Windfall Ellm. Provision Direct                                                                                
 Spending                                 (\2\)            1            1            1            1            4
308. Exclusion of Military                                                                                      
 Reservists from Application of                                                                                 
 the Government Pension Offset and                                                                              
 Windfall Provisions:                                                                                           
    Direct Spending...............        (\2\)        (\2\)        (\2\)        (\2\)        (\2\)        (\2\)
309. Repeal Facility-of-Payment                                                                                 
 Provision:                                                                                                     
    Direct Spending...............            0            0            0            0            0            0
    Subject to Appropriation\1\...            0           -3           -3           -3           -3          -12
310. Simplify Computation of                                                                                    
 Maximum Family Benefits When                                                                                   
 Subsequent Entitlement Guarantee                                                                               
 Applies to PIA:                                                                                                
    Direct Spending...............        (\2\)        (\2\)        (\2\)        (\2\)        (\2\)        (\2\)
311. Use of SSA Information for                                                                                 
 Epidemiological Research:                                                                                      
    Subject to Appropriation\1\...            0            0            0            0            0            0
312. Prohibition on Misuse of                                                                                   
 Social Security Names, Symbols,                                                                                
 etc.:                                                                                                          
    Subject to Appropriation\1\...            0            0            0            0            0            0
313. Unauthorized Disclosure of                                                                                 
 Social Security Information:                                                                                   
    Direct Spending...............        (\2\)        (\2\)        (\2\)        (\2\)        (\2\)        (\2\)
    Subject to Appropriation\1\...        (\2\)        (\2\)        (\2\)        (\2\)        (\2\)        (\2\)
314. Time Extension for Annual                                                                                  
 Earnings Report:                                                                                               
    Direct Spending...............            0            0            0            0            0            0
    Subject to Appropriation\1\...            0            0            0            0            0            0
314. Extend DI Demonstration                                                                                    
 Authority Direct Spending........            0            0            0            0            0            0
316. Cross-Matching Social                                                                                      
 Security Account Number                                                                                        
 Information With Dept. of                                                                                      
 Agriculture Subject to                                                                                         
 Appropriation\1\.................            0            0            0            0            0            0
317. Certain Transfers to the                                                                                   
 Railroad Retirement Account Made                                                                               
 Permanent:                                                                                                     
    Direct Spending...............            0            0            0            0            0            0
318. Authorization for use of                                                                                   
 Social Security Numbers by the                                                                                 
 Dept. of Labor for Administration                                                                              
 of Federal Workers' Compensation:                                                                              
    Direct Spending...............            0            0            0            0            0            0
    Subject to Appropriation\1\...            0            0            0            0            0            0
319. Retirement Eligibility for                                                                                 
 Federal Employees Transferred to                                                                               
 International Organizations:                                                                                   
    Off-Budget Revenue............        (\2\)        (\2\)        (\2\)        (\2\)        (\2\)            1
    On-Budget Revenue.............        (\2\)        (\2\)        (\2\)        (\2\)        (\2\)        (\2\)
                                   -----------------------------------------------------------------------------
      Total Net Revenue...........        (\2\)        (\2\)        (\2\)        (\2\)        (\2\)            1
    Subject to Appropriation\1\...            1            1            1            1            1            5
320. Extend FICA exemption to                                                                                   
 individuals who enter U.S. Under                                                                               
 a Visa Issued under Section 101                                                                                
 of the Immigration and                                                                                         
 Naturalization Act\5\:                                                                                         
    Off-Budget Revenue............           -4           -5           -6           -6           -6          -27
    On-Budget Revenue\4\..........           -1           -1           -1           -1           -1           -5
                                   -----------------------------------------------------------------------------
      Total Net Revenue...........           -5           -6           -7           -7           -7          -32
321. Technical and Clerical                                                                                     
 Amendments Subject to                                                                                          
 Appropriation\1\.................            0            0            0            0            0            0
              TOTALS                                                                                            
                                                                                                                
Revenues:                                                                                                       
    On-Budget\4\..................           -2           -2           -2           -2           -2          -12
    Off-Budget....................          -11          -20          -21          -21          -21          -92
                                   -----------------------------------------------------------------------------
      Total Net...................          -13          -22          -23          -23          -23         -104
Direct Spending Totals:                                                                                         
    On-Budget.....................          -12          -25          -58         -332         -381         -796
    Off-Budget....................          -62           11           76           83           45          153
                                   -----------------------------------------------------------------------------
      Total.......................          -74          -14           18         -249         -336         -645
                                   =============================================================================
Direct Spending Excluding                                                                                       
 Administrative Costs not subj. to                                                                              
 Appropriations:                                                                                                
    On-Budget.....................          -12          -25          -58         -332         -381         -796
    Off-Budget....................          -73          -34          -15          -32          -84         -238
                                   -----------------------------------------------------------------------------
      Total.......................          -85          -59          -73         -364         -465        -1036
                                   =============================================================================
Deficit Effects--Direct Spending                                                                                
 Minus Revenues:                                                                                                
    On-Budget.....................          -10          -23          -56         -330         -379         -786
    Off-Budget....................          -51           31           97          104           66          245
                                   -----------------------------------------------------------------------------
      Total.......................          -61            8           41         -226         -313         -541
                                   =============================================================================
Deficit Effects--Direct Spending                                                                                
 Exc. Administrative Costs Not                                                                                  
 Subj. to Appropriations Minus                                                                                  
 Revenues:                                                                                                      
    On-Budget\4\..................          -10          -23          -56         -330         -379         -786
    Off-Budget....................          -62          -14            6          -11          -63         -146
                                   -----------------------------------------------------------------------------
      Total.......................          -72          -37          -50         -341         -442         -932
                                   =============================================================================
Outlays Subject to Appropriation:                                                                               
    On-Budget\1\..................           37           94          120          106           89          447
    Off-Budget....................            0            0            0            0            0            0
                                   -----------------------------------------------------------------------------
      Total Net...................           37           94          120          106           89          447
----------------------------------------------------------------------------------------------------------------
\1\Under the FY 1995 Budget Resolution, administrative expenses of the OASDI program are considered on-budget   
  because they fall under the discretionary spending limits.                                                    
(\2\)Indicates less than $500,000.                                                                              
\3\Administrative costs would not have effects that must be considered for the purposes of the Budget           
  Enforcement Act.                                                                                              
\4\Effects on Hospital Insurance revenues are included as on-budget to be consistent with the Budget Resolution 
  for FY 1995.                                                                                                  
\5\Preliminary estimate provided by the Joint Committee on Taxation.                                            
                                                                                                                
Source: Congressional Budget Office, based on draft legislative language.                                       
Note. Details may not add to totals due to rounding.                                                            


                      PAY-AS-YOU-GO CONSIDERATIONS                      
                [By fiscal years, in millions of dollars]               
------------------------------------------------------------------------
                                 1995       1996       1997       1998  
------------------------------------------------------------------------
Receipts....................         -2         -2         -2         -2
Outlays.....................        -12        -25        -58       -332
------------------------------------------------------------------------

       The on-budget outlay changes in SSI, Medicare, Medicaid, 
     Food Stamps, and AFDC would be included on the pay-as-you-go 
     scoreboard. Social Security spending is exempt from the pay-
     as-you-go rules.
     Sam Gibbons,
     Dan Rostenkowski,
     J.J. Pickle,
     Andrew Jacobs, Jr.,
     Harold Ford,
     Bill Archer,
     Jim Bunning,
     Rick Santorum,
                                Managers on the Part of the House.

     Daniel P. Moynihan,
     Max Baucus,
     John Breaux,
     Bob Packwood,
     Bob Dole,
     Managers on the Part of the Senate.

                          ____________________