[House Report 104-786]
[From the U.S. Government Publishing Office]
104th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 104-786
_______________________________________________________________________
SOCIAL SECURITY MISCELLANEOUS AMENDMENTS ACT OF 1996
_______
September 16, 1996.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______________________________________________________________________
Mr. Archer, from the Committee on Ways and Means, submitted the
following
R E P O R T
[To accompany H.R. 4039]
[Including cost estimate of the Congressional Budget Office]
The Committee on Ways and Means, to whom was referred the
bill (H.R. 4039) to make technical and clarifying amendments to
recently enacted provisions relating to titles II and XVI of
the Social Security Act and to provide for a temporary
extension of demonstration project authority in the Social
Security Administration, having considered the same, report
favorably thereon without amendment and recommend that the bill
do pass.
CONTENTS
Page
I. Introduction......................................................2
A. Purpose and Summary................................... 2
B. Background and Need for Legislation................... 2
C. Legislative History................................... 2
II. Explanation of Provisions.........................................3
A. Section 1. Short Title................................ 3
B. Section 2. Technical Amendments Relating to Drug
Addicts and Alcoholics............................... 3
C. Section 3. Clarification Regarding Review of
Determinations By State Disability Determination
Services............................................. 4
D. Section 4. Extension of Disability Insurance Program
Demonstration Project Authority...................... 5
E. Section 5. Perfecting Amendments Related to
Withholding from Social Security Benefits............ 5
F. Section 6. Treatment of Prisoners..................... 6
III.Votes of the Committee............................................8
IV. Budget Effects of the Bill........................................9
A. Committee Estimate of Budgetary Effects............... 9
B. Statement Regarding New Budget Authority and Tax
Expenditures......................................... 9
C. Cost Estimate Prepared by the Congressional Budget
Office............................................... 9
V. Other Matters Required To Be Discussed Under the Rules of the Hou15
A. Committee Oversight Findings and Recommendations...... 15
B. Summary of Findings and Recommendations of the
Government Reform and Oversight Committee............ 15
C. Inflationary Impact Statement......................... 15
VI. Changes in Existing Law Made by the Bill, as Reported............15
I. INTRODUCTION
A. Purpose and Summary
The ``Social Security Miscellaneous Amendments Act of
1996'' (H.R. 4039) is based on legislative language submitted
by the Social Security Administration (SSA) making a number of
technical and perfecting amendments to provisions regarding
denial of benefits to drug addicts and alcoholics,
clarification regarding review of determinations by State
Disability Determination Services, extension of disability
insurance program demonstration project authority, and
withholding of taxes from Social Security benefits.
Also included are provisions further barring payment of
Social Security retirement, survivors, and disability insurance
benefits to prisoners that are similar to those included in the
House-passed version of the ``Personal Responsibility and Work
Opportunity Reconciliation Act of 1996,'' which became law
(P.L. 104-193) on August 22, 1996. The provisions barring
payment of Social Security benefits to prisoners were not
included in the conference report on the legislation because of
the Senate's interpretation of procedural rules against
including Social Security provisions in a reconciliation bill.
B. Background and Need for Legislation
In May 1996, Commissioner of Social Security Shirley Chater
submitted to Congress for consideration a draft bill to amend
the Social Security Act to extend and amend demonstration
project authority, make perfecting amendments related to tax
withholding from Social Security benefits, make a technical
clarification in the effective date of the denial of disability
benefits to drug addicts and alcoholics, and make
administrative improvements with respect to reports by prisons
and certain other institutions. The Commissioner cited the
time-sensitivity of the provisions, either because they were
needed to meet statutory deadlines, or they warranted prompt
consideration because they were critical to SSA's efforts to
ensure that benefits are paid only to properly qualified
individuals. Furthermore, a May 1996 audit by the SSA Office of
Inspector General on ``Effectiveness in Obtaining Records to
Identify Prisoners'' found that SSA had achieved only limited
success in obtaining the prisoner information needed to suspend
benefit payments, and recommended legislative action to enable
SSA to more efficiently suspend benefits.
C. Legislative History
On July 25, 1996, the Subcommittee on Social Security
ordered favorably reported to the Full Committee, by a voice
vote, with a quorum present, draft legislation entitled the
``Social Security Miscellaneous Amendments Act of 1996.''
On September 11, 1996, the Full Committee ordered favorably
reported, H.R. 4039, the ``Social Security Miscellaneous
Amendments Act of 1996,'' by voice vote with a quorum present.
II. EXPLANATION OF PROVISIONS
A. Section 1. Short Title
The short title of the bill is the ``Social Security
Miscellaneous Amendments Act of 1996.''
B. Section 2. Technical Amendments Relating to Drug Addicts and
Alcoholics
Present law
The ``Contract With America Advancement Act of 1996'' (P.L.
104-121) included amendments to the Social Security and
Supplemental Security Income (SSI) disability programs
providing that no individual could be considered to be disabled
if alcoholism or drug addiction would otherwise be a
contributing factor material to the determination of
disability. The effective date for all new and pending
applications was the date of enactment. For those whose claim
had been finally adjudicated before the date of enactment, the
amendments would apply commencing with benefits for months
beginning on or after January 1, 1997.
Public Law 104-121 provided for the appointment of
representative payees for recipients allowed benefits due to
another impairment who also have drug addiction or alcoholism
conditions, and the referral of those individuals for
treatment.
``The Social Security Independence and Program Improvements
Act of 1994'' (P.L. 103-296) contained requirements that the
Commissioner of Social Security report to the Committees on
Ways and Means and Finance by December 31, 1996, on activities
related to the monitoring and testing of Social Security
beneficiaries on the basis of drug addiction or alcoholism and
who are required to undergo treatment as a condition for
receipt of benefits.
Explanation of provision
The provision clarifies the meaning of the term ``final
adjudication.'' A claim may not be considered to be finally
adjudicated if there is a pending request for administrative or
judicial review or a pending readjudication pursuant to class
action or court remand.
The amendment ensures that the requirement to appoint a
representative payee, and refer beneficiaries for treatment,
apply to beneficiaries who are allowed benefits (due to another
impairment) based on a new application filed before enactment,
and who continue to get benefits based on a successful
redetermination filed before July 1, 1996.
The amendment would repeal the reporting requirements on
activities related to the monitoring and testing of Social
Security beneficiaries on the basis of drug addiction or
alcoholism and who are required to undergo treatment as a
condition for receipt of benefits.
Reason for change
The provision clearly defines ``final adjudication'' to
avoid any misinterpretation by the courts. At least one court
has already concluded that it can award benefits through
January 1, 1997, because the Commissioner's decision denying
benefits was issued before March 29, 1996.
As written, current law creates an anomaly, whereby all
those allowed benefits (due to another impairment) before March
29, 1996, and redetermined before July 1, 1996, are excluded
from the requirement that a representative payee be appointed
and that they be referred for treatment. The provision corrects
this anomaly.
Since Public Law 104-121 contained amendments that
eliminated payment of benefits on the basis of drug addiction
or alcoholism and the treatment and monitoring requirements,
the requirement to report on the monitoring and testing
activities is obsolete.
Effective date
The amendments would be effective as though they had been
included in the enactment of Section 105 of Public Law 104-121.
The repeal of the obsolete reporting requirement would be
effective as of the date of enactment.
C. Section 3. Clarification Regarding Review of Determinations by State
Disability Determination Services
Present law
The Social Security Act provides that any claimant
dissatisfied with a disability determination made by a State
disability determination service (DDS) is entitled to a hearing
by the Commissioner and to judicial review of the
Commissioner's final decision on the claimant's disability
claim.
Explanation of provision
The provision clarifies existing law to state that
jurisdiction to challenge DDS determinations under the Social
Security Act would lie only against the Commissioner. This
provision would apply to all cases in which there is not a
final judgment.
Reason for change
Notwithstanding current law, the United States Court of
Appeals for the Eighth Circuit held in Schoolcraft v. Sullivan,
971 F. 2d 81 (1992), that claimants could seek review of the
actions of State DDS employees through civil actions alleging
violations of the Civil Rights Act of 1871 (42 U.S.C. 1983). As
a result, there are now ten pending or threatened class action
law suits against DDSs.
SSA is the appropriate defendant where State agency
practices are challenged since it is SSA's responsibility to
ensure that standards for making its disability determinations
are followed. In addition, these law suits have a chilling
effect on the Federal/State relationship, increasing the
liability of State officials, forcing States to question SSA
policy, and creating an extensive administrative burden on the
affected States in the form of depositions, discovery, lengthy
court hearings, etc.
Effective date
The amendments would be effective as of the date of
enactment.
D. Section 4. Extension of Disability Insurance Program Demonstration
Project Authority
Present law
Under authority which expired on June 9, 1996, the
Commissioner may initiate experiments and demonstration
projects to test ways to encourage Social Security disability
insurance (SSDI) beneficiaries to return to work, and may waive
compliance with certain benefit requirements in connection with
these projects. Current law also provides the Commissioner with
permanent authority to conduct experimental, pilot, or
demonstration projects that are likely to promote the
objectives or facilitate the administration of the SSI program.
Explanation of provision
This provision extends the demonstration authority
expiration date to June 10, 1997, and includes authority for
SSA to conduct demonstration projects involving SSDI applicants
as well as recipients.
Reason for change
The provision enables SSA to initiate new demonstration
projects involving SSDI applicants and beneficiaries over the
next year.
Effective date
The amendment would be effective as of the date of
enactment.
E. Section 5. Perfecting Amendments Related to Withholding from Social
Security Benefits
Present law
The ``Uruguay Round Agreements Act'' (P.L. 103-465)
includes revenue provisions requiring that U.S. taxpayers who
receive specified Federal payments (including Social Security
benefits) be given the option of requesting that the Federal
agency making the payments withhold Federal income taxes from
payments made after December 31, 1996.
Section 207 of the Social Security Act prohibits
withholding or assignment of Social Security benefits to any
party or entity other than the beneficiary.
Explanation of provision
The provision amends the Social Security Act anti-
assignment section to allow the withholding of taxes from any
benefit pursuant to the Internal Revenue Code of 1986. It also
allocates funding for SSA to administer the tax-withholding
provision.
Reason for change
These provisions amend the Social Security Act so that the
provisions in the tax code may be implemented, as originally
intended, and funding may be allocated for SSA to administer
the tax-withholding provision.
Effective date
The amendments would be effective as of the date of
enactment.
F. Section 6. Treatment of Prisoners
1. Implementation of Prohibition Against Payment of Title II Benefits
to Prisoners
Present law
Current law prohibits prisoners from receiving Old Age,
Survivors, and Disability (OASDI) benefits while incarcerated
if they are convicted of any crime punishable by imprisonment
of more than one year. Federal, State, county, or local prisons
are required to make available, upon written request, the name
and Social Security account number of any individual so
convicted who is confined in a penal institution or
correctional facility.
The ``Personal Responsibility and Work Opportunity
Reconciliation Act of 1996,'' (P.L. 104-193) requires the
Commissioner to make agreements with any interested State or
local institution to provide monthly the names, Social Security
account numbers, confinement dates, dates of birth, and other
identifying information of residents who are Supplemental
Security Income (SSI) recipients. The Commissioner is required
to pay the institution $400 for each SSI recipient who becomes
ineligible as a result, if the information is provided within
30 days of incarceration, and $200 if the information is
furnished after 30 days but within 90 days. Computer matching
agreement requirements are simplified to facilitate the
exchange of information between the correctional institutions
and SSA.
The Commissioner is authorized to provide, on a
reimbursable basis, information obtained pursuant to these
agreements to any Federal or federally-assisted cash, food, or
medical assistance program, for the purpose of determining
program eligibility.
Explanation of provision
The provision amends prisoner provisions in P.L. 104-193 to
include Old Age, Survivors, and Disability Insurance (OASDI)
benefits.
The Commissioner would enter into an agreement with any
interested State or local correctional institution to provide
monthly the names, Social Security account numbers, confinement
dates, dates of birth, and other identifying information
regarding prisoners who receive OASDI benefits. For each
eligible individual who becomes ineligible as a result, the
Commissioner would pay the institution an amount up to $400 if
the information is provided within 30 days of incarceration,
and up to $200 if provided after 30 days but within 90 days.
Computer matching agreement requirements are simplified to
facilitate the exchange of information between the correctional
institutions and SSA.
The Commissioner would be authorized to provide, on a
reimbursable basis, information obtained pursuant to these
agreements to any Federal or federally-assisted cash, food, or
medical assistance program for the purpose of determining
program eligibility.
Payments to correctional institutions would be reduced by
50 percent for multiple reports on the same individual who
receives both SSI and OASDI benefits. Payments made to the
correctional institution would be made from OASI or DI Trust
Funds, as appropriate.
Reason for change
The provision applies the prohibitions against payment of
benefits to OASDI in the same manner that they apply to SSI
benefits. Both SSI and OASDI prisoner provisions were included
in the House-passed version of Public Law 104-193. OASDI
provisions were not included in the conference report on the
legislation because of Senate interpretation of procedural
rules. This language restores the OASDI provisions.
These provisions provide new financial incentives for State
and local correctional institutions to report information on
inmates to the Social Security Administration (SSA) so that
payment of OASDI benefits to prisoners being supported at
taxpayer expense are stopped promptly.
The provision allows SSA to share, and be reimbursed for,
any information obtained through these agreements that would
assist other Federal agencies in administering their programs.
Payments would be restricted to $400, even if the prisoner
is entitled to both SSI and OASDI benefits.
Effective Date
These amendments would apply as if included in the
enactment of section 203(a) of the "Personal Responsibility and
Work Opportunity Reconciliation Act of 1996."
2. Elimination of Title II Requirement that Confinement Stem from Crime
Punishable by Imprisonment for More Than 1 Year
Present law
The Social Security Act bars payment of OASDI benefits to
prisoners convicted of any crime punishable by imprisonment of
more than a year and to those who are institutionalized because
they are found guilty but insane.
Explanation of provision
This provision would further bar payment of Social Security
benefits to prisoners, and is similar to the provisions barring
payment of SSI benefits to prisoners that were included in the
House-passed version of Public Law 104-193. Social Security
benefits would be prohibited to prisoners convicted of any
criminal offense (formerly limited to an offense punishable by
imprisonment of one year or more), or to those who are found
guilty but insane, and who are incarcerated or
institutionalized throughout a month.
Reason for Change
An audit conducted by the SSA Office of Inspector General
determined that the language in existing law required that for
each prisoner eligible for benefits, the duration of
incarceration be determined on a case-by-case basis, based on
data that can only be obtained from the courts. This was a
costly, labor-intensive process that impeded timely suspension
of benefits. As a matter of fairness, benefits would also be
barred to persons who commit a criminal offense but are found
guilty by reason of insanity.
Effective date
Effective for benefits payable for months after February
1997.
3. Inclusion of Title II Issues in Study and Report Requirements
Relating to Prisoners
Present law
The ``Personal Responsibility and Work Opportunity
Reconciliation Act of 1996'' requires the Commissioner to study
the desirability, feasibility, and cost of establishing a
system for courts to directly furnish SSA with information
regarding court orders affecting SSI recipients, and requiring
State and local jails, prisons, and other institutions to enter
into contracts with the Commissioner by means of an electronic
or similar data exchange system.
The Commissioner is also required to provide to the
Committees of jurisdiction a list of institutions that are and
are not providing information in accordance with these
provisions regarding prisoners receiving SSI benefits.
Explanation of provision
These provisions would broaden the study and the list of
compliant institutions to include prisoners receiving OASDI
benefits.
Reason for Change
SSA must find better ways to exchange data with courts and
State and local jails, prisons, and other institutions so that
prisoners who are being supported at taxpayer expense do not
also receive Federal benefits.
The Committee believes that conducting such a study, and
reporting its findings to Congress, will serve as an incentive
for correctional institutions to enter into reporting
agreements.
Effective date
These amendments would apply as if included in sections 203
(b) and (c) of the ``Personal Responsibility and Work
Opportunity Reconciliation Act of 1996.''
III. VOTES OF THE COMMITTEE
In compliance with clause 2(l)(2)(B) of rule XI of the
Rules of the House of Representatives, the following statement
is made:
The bill, H.R. 4039, was ordered favorably reported to the
House of Representatives on September 11, 1996, by voice vote,
with a quorum present.
IV. BUDGET EFFECTS OF THE BILL
A. Committee Estimate of Budgetary Effects
In compliance with clause 7(a) of rule XIII of the Rules of
the House of Representatives, the following statement is made:
The Committee agrees with the estimate prepared by the
Congressional Budget Office (CBO) which is included below.
B. Statement Regarding New Budget Authority and Tax Expenditures
In compliance with clause 2(l)(3)(B) of rule XI of the
Rules of the House of Representatives, the Committee states the
Committee bill results in net decreased budget authority for
direct spending programs relative to current law, and no new or
increased due tax expenditures.
C. Cost Estimate Prepared by the Congressional Budget Office
In compliance with clause 2(l)(3)(C) of rule XI of the
Rules of the House of Representatives requiring a cost estimate
prepared by the Congressional Budget Office, the following
report prepared by CBO is provided:
U.S. Congress,
Congressional Budget Office,
Washington, DC, September 12, 1996.
Hon. Bill Archer,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 4039, the Social
Security Miscellaneous Amendments Act of 1996, as ordered
reported by the Committee on Ways and Means on September 11,
1996.
The bill would affect direct spending and thus would be
subject to pay-as-you-go procedures under Section 252 of the
Balanced Budget Emergency Deficit Control Act of 1985.
If you wish further details, we will be pleased to provide
them.
Sincerely,
James L. Blum
(For June E. O'Neill, Director).
Attachment.
congressional budget office cost estimate
1. Bill number: H.R. 4039.
2. Bill title: Social Security Miscellaneous Amendments Act
of 1996.
3. Bill status: As ordered reported by the Committee on
Ways and Means on September 11, 1996.
4. Bill purpose: The bill would clarify the provisions of
several previously enacted laws affecting the Social Security
and Supplemental Security Income (SSI) programs to ensure that
they work as originally planned; extend for one year the Social
Security Administration's authority to waive certain provisions
of law for purposes of research and demonstration projects; and
curtail the ability of some denied applicants to appeal
directly to federal courts. In addition, it would further
restrict the payment of Social Security benefits to prisoners
by adopting changes like those recently enacted in the SSI
program.
5. Estimated cost to the Federal Government: CBO estimates
that, over the six-year period between 1997 and 2002, enactment
of the bill would save $65 million in direct spending. Of that
amount, $28 million is off-budget (Social Security) and $37
million on-budget (Supplemental Security Income). In addition,
the bill would also entail additional administrative expenses
for the Social Security Administration (SSA) amounting to an
estimated $39 million over six years; those funds would be
subject to future appropriations.
The following table summarizes the effects of the bill on
direct spending. Table I (attached) provides details on the
components of the estimate. Table II displays the Social
Security scorecard that is used by the House of
Representatives.
[By fiscal years, in millions of dollars]
----------------------------------------------------------------------------------------------------------------
7-year
1996 1997 1998 1999 2000 2001 2002 total
----------------------------------------------------------------------------------------------------------------
PROJECTED DIRECT SPENDING UNDER CURRENT LAW \1\
Old-Age, Survivors, and
Disability Insurance........... 348,186 365,398 383,392 402,336 422,397 444,061 466,747
Supplemental Security Income.... 24,017 27,111 26,684 28,296 33,171 30,171 35,390
----------------------------------------------------------------------
Total..................... 372,203 392,509 410,076 430,632 455,568 474,232 502,137
======================================================================
PROPOSED CHANGES
Old-Age, Survivors, and
Disability Insurance........... 0 3 2 -6 -11 -6 -10 -28
Supplemental Security Income.... 0 -5 -4 -4 -5 -9 -10 -37
-------------------------------------------------------------------------------
Total..................... 0 -2 -2 -10 -16 -15 -20 -65
-------------------------------------------------------------------------------
PROJECTED DIRECT SPENDING UNDER PROPOSAL
Old-Age, Survivors, and
Disability Insurance........... 348,186 365,401 383,394 402,330 422,386 444,055 466,737
Supplemental Security Income.... 24,017 27,106 26,680 28,292 33,166 30,162 35,380
----------------------------------------------------------------------
Total..................... 372,203 392,507 410,074 430,622 455,552 474,217 502,117
----------------------------------------------------------------------------------------------------------------
\1\ Estimates are from the CBO March 1996 baseline, adjusted for enactment of P.L. 104-193 (the Personal
Responsibility and Work Opportunity Act of 1996).
6. Basis of estimate: CBO's estimate assumes that the bill
would be enacted on October 1, 1996.
Direct spending
Section 2--Drug addicts and alcoholics. The bill would
clarify certain provisions of Public Law 104-121, enacted in
March 1996, which ended the eligibility of many drug addicts
and alcoholics (DA&As) for Social Security and SSI benefits.
That law provided that recipients already on the rolls in March
1996 would lost their benefits on January 1, 1997, if they fell
into the affected group. DA&A applicants whose cases had not
yet been ``finally adjudicated'' were not to be awarded
benefits at all.
This bill would clarify the meaning of ``final
adjudication.'' One court has held that an applicant whose
initial claim was denied before March 29, 1996, but who had an
appeal outstanding that would have qualified under the old law,
could get benefits until January 1997. This bill reiterates
that applicants in similar circumstances are not deemed to be
``finally adjudicated'' and hence are not eligible for any
benefits. The clarification would confirm the Congress' and
CBO's original understanding of the provision.
If that one court's ruling were to prevail nationwide--a
highly speculative outcome--CBO estimates that up to $20
million in extra benefits not contemplated in Public Law 104-
121 might be paid out. Nevertheless, CBO does not attribute any
savings to this correction because those savings were already
credited to P.L. 104-121, and it would be inappropriate to give
credit twice.
Other corrections in this section have no budgetary
implications.
Section 3--Immunity of DDS employees. This bill would
change the appeals process for denied applicants in certain
cases. The Social Security Administration relies on disability
determination services (DDSs), run by the states, to perform
initial evaluations of disability in the Social Security and
SSI programs. Applicants who are denied benefits by the DDSs
may seek a reconsideration, then pursue several levels of
appeal at SSA, and then go to federal court.
A few denied applicants, however, go straight from the DDSs
to federal court. Such cases generally allege violations of the
plaintiffs' civil rights by the DDS. This bill would require
that denied applicants must exhaust the SSA appeals process
before turning to federal court. CBO assigns no budgetary
effects to this provision.
Section 4--Research and demonstration projects. The SSA has
authority to conduct certain research and demonstration (R&D)
projects that occasionally require waivers of provisions of
Title II of the Social Security Act. That waiver authority
expired on June 10, 1996. This bill would extend it for one
year, until June 10, 1997. This would be the fifth extension
since the waiver authority was enacted in 1980.
When the waiver authority has been in effect, SSA has
generally spent between $2 million and $7 million annually on
the affected R&D projects. CBO estimates that a one-year
extension of the authority would lead to outlays of $7 million,
chiefly in fiscal year 1998.
Section 5--Withholding of income taxes. Public Law 103-465,
enacted in December 1994, permitted voluntary withholding of
income taxes from Social Security checks starting in 1997. At
that time, the provision was estimated by the Joint Committee
on Taxation to raise about $180 million in 1997 and about $20
million a year thereafter, chiefly by accelerating the receipt
of taxes that would have been collected eventually in any case.
That law, however, failed to override a provision of the
Social Security Act that prohibits the assignment of benefits
to anyone other than the entitled individual. That provision
has been interpreted to bar withholding. This bill would remedy
that omission and permit withholding to take effect as planned.
The Joint Committee on Taxation advises CBO that, since the
extra taxes resulting from the 1994 law are already included in
the baseline, no further revenue gains should be ascribed to
this correction.
Section 6--Treatment of prisoners. Current law sets strict
limits on payment of SSI benefits to incarcerated people, and
somewhat milder limits on such payments in the Old-Age,
Survivors, and Disability Insurance (OASDI) program. SSI
recipients who are in prison for a full month--regardless of
whether they are convicted--are to have their benefits
suspended. OASDI recipients who have been convicted of an
offense carrying a maximum sentence of 1 year or more are to
have their benefits suspended. Those who are convicted of
lesser crimes, and those who are in jail awaiting trial, may
still collect OASDI benefits. Currently, those provisions are
enforced chiefly by an exchange of computerized data between
the Social Security Administration and the Federal Bureau of
Prisons, state prisons, and some county jails. Those agreements
are voluntary and, until recently, involved no payments to the
institutions.
The welfare reform bill (Public Law 104-193) enacted in
August changed that arrangement by directing SSA to pay penal
institutions for reporting information that led to the
identification of ineligible SSI recipients. The payment is
$400 if the institution reports information within 30 days of
confinement and $200 if the report is made within 30 to 90 days
after confinement. The bill also exempted matching agreements
between SSA and correctional institutions from certain
provisions of the Privacy Act. CBO assumed that these
provisions would spur more institutions to share data with SSA,
and would induce institutions that already provide such data to
renew those agreements more promptly rather than letting them
lapse.
This bill proposes analogous arrangements in the OASDI
program. It would also drop the requirement that OASDI be
suspended only if the maximum sentence for the offense is 1
year or more. (A conviction would still be required; inmates
who are in jail while they are awaiting trial could continue to
collect benefits.) CBO estimated the effects of this provision,
like its predecessor in the welfare reform bill, by analyzing
data from several sources that suggest about 4 percent to 5
percent of prisoners were receiving Social Security, SSI, or
both before incarceration, together with recent reports from
SSA's Inspector General suggesting that some of those prisoners
are overlooked under current matching arrangement because their
institution has not signed an agreement or has not renewed one
promptly. CBO estimates that, over the 1997-2002 period, the
provision would lead to payments of $45 million to correctional
institutions out of the OASDI trust funds and benefit savings
of $80 million, for a net saving of $35 million. CBO also
assumes that the broader arrangement would encourage more
correctional institutions to participate in the reporting
program, and would lead to spillover savings in the SSI
program. Both the payments and the savings in benefits would
occur automatically, without the need for appropriation. The
cost to SSA of administering the provision, in contrast, would
be subject to appropriation and is estimated at $39 million
over six years.
Amounts subject to appropriation
As noted on Table I, CBO estimates that the bill would
cause SSA to incur greater administrative costs. The expansion
of arrangements to pay correctional institutions for
information about ineligible recipients is expected to cost SSA
$39 million over six years. CBO assumed that information about
prison inmates--even if submitted in computerized form--would
ultimately have to be processed by hand before leading to a
suspension; that such investigations would cost about $300
each; and that--because jails are higher-turnover
institutions--only about one out of five investigations would
result in a suspension.
7. Pay-as-you-go considerations: Section 252 of the
Balanced Budget and Emergency Deficit Control Act of 1985 sets
up pay-as-you-go procedures for legislation affecting direct
spending or receipts through 1998. Changes in Social Security
outlays and revenues are exempt from pay-as-you-go procedures,
but are constrained under separate limitations in each house of
the Congress. The Social Security scorecard for the House of
Representatives is displayed in the attached Table II. (For
convenience, that table also shows the effects of two laws
already passed in this Congressional session.) The pay-as-you-
go effects of the bill are as follows:
[By fiscal years, in millions of dollars]
------------------------------------------------------------------------
1996 1997 1998
------------------------------------------------------------------------
Chane in outlays....................... 0 -5 -4
Change in revenues..................... 0 0 0
------------------------------------------------------------------------
8. Estimated impact on State, local, and tribal
governments: In accordance with the Unfunded Mandates Reform
Act of 1995 (Public Law 104-4), CBO has determined that this
bill contains no intergovernmental mandates and would impose no
costs on state, local, or tribal governments.
9. Estimated impact on the private sector: In accordance
with Public Law 104-4, CBO has determined that this bill would
impose no private-sector mandates.
10. Previous CBO estimate: None.
11. Estimate prepared by: Federal estimate: Kathy Ruffing;
State, local, and tribal estimate: John Patterson; private
sector estimate: Daniel Mont.
12. Estimate approved by: Paul N. Van de Water, Assistant
Director for Budget Analysis.
TABLE I.--BUDGETARY IMPACTS OF H.R. 4039, THE SOCIAL SECURITY MISCELLANEOUS AMENDMENTS ACT OF 1996, BY SECTION
[By fiscal years, in millions of dollars]
----------------------------------------------------------------------------------------------------------------
7-year
Section 1996 1997 1998 1999 2000 2001 2002 total
----------------------------------------------------------------------------------------------------------------
DIRECT SPENDING
Section 2:
Technical Amendments Relating to Drug
Addicts and Alcoholics:
OASDI benefit outlays................... 0 0 0 0 0 0 0 0
SSI benefit outlays..................... 0 0 0 0 0 0 0 0
---------------------------------------------------------------
Subtotal, provision................... 0 0 0 0 0 0 0 0
===============================================================
Section 3:
Immunity of State Disability Determination
Services from Certain Suits................ 0 0 0 0 0 0 0 0
Section 4:
Extension of DI Demonstration Project
Authority:
DI outlays.............................. 0 (\1\) 6 1 (\1\) 0 0 7
Section 5:
Perfecting Amendments Relating to
Withholding of Income Taxes from Social
Security Benefits.......................... 0 0 0 0 0 0 0 0
Section 6:
Provisions Regarding Payment of Benefits to
Prisoners:
Payments to prison officials, OASDI..... 0 3 6 8 9 9 10 45
Payments to prison officials, SSI....... 0 (\1\) 1 1 (\1\) 1 (\1\) 3
Savings in benefits, OASDI.............. 0 (\1\) -10 -15 -20 -15 -20 -80
Savings in benefits, SSI................ 0 -5 -5 -5 -5 -10 -10 -40
---------------------------------------------------------------
Subtotal, provision................... 0 -2 -8 -11 -16 -15 -20 -72
===============================================================
Total direct spending: 0 -2 -2 -10 -16 -15 -20 -65
---------------------------------------------------------------
On-budget............................... 0 -5 -4 -4 -5 -9 -10 -37
Off-budget.............................. 0 3 2 -6 -11 -6 -10 -28
Amounts Subject to Appropriation
Section 6:
Provisions Regarding Payments of Benefits to
Prisoners.................................. 0 2 9 9 8 5 6 39
----------------------------------------------------------------------------------------------------------------
\1\ denotes less than $500,000.
Estimates assume an enactment date of October 1, 1996. Details may not add to total due to rounding.
OASDI=Old-Age, Survivors, and Disability Insurance; DI=Disability Insurance; SSI=Supplemental Security Income.
TABLE II.--CBO ESTIMATE OF EFFECTS ON SOCIAL SECURITY SCORECARD OF H.R. 4039, THE SOCIAL SECURITY MISCELLANEOUS
AMENDMENTS ACT OF 1996
[By fiscal years, in millions of dollars]
----------------------------------------------------------------------------------------------------------------
12-Sep-96 1996 1997 1998 1999 2000 2001 Five-year
----------------------------------------------------------------------------------------------------------------
Scoreboard before Contract with
America Advancement Act:
OASDI taxes.................... 55 58 146 80 0 ......... 339
OASDI benefits................. -62 -40 -57 -109 0 ......... -268
----------------------------------------------------------------------------
Net effect................... 117 98 203 189 0 ......... 607
============================================================================
Contract with America Advancement
Act (P.L. 104-121):
OASDI taxes.................... 0 0 0 0 0 ......... 0
OASDI benefits................. -5 120 -10 10 90 ......... 205
----------------------------------------------------------------------------
Net effect................... 5 -120 10 -10 -90 ......... -205
============================================================================
Personal Responsibility and Work
Opportunity Reconciliation Act of
1996 (P.L. 104-193):
OASDI taxes.................... 0 0 0 0 0 ......... 0
OASDI benefits................. 0 -5 -10 -15 -15 ......... -45
----------------------------------------------------------------------------
Net effect................... 0 5 10 15 15 ......... 45
============================================================================
Current scorecard:
OASDI taxes.................... 55 58 146 80 0 ......... 339
OASDI benefits................. -67 75 -77 -114 75 ......... -108
----------------------------------------------------------------------------
Net effect................... 122 -17 223 194 -75 ......... 447
============================================================================
CBO estimate of Miscellaneous
Social Security Amendments Act of
1996 (H.R. 4039):
OASDI taxes.................... na 0 0 0 0 0 0
OASDI benefits................. na 0 -10 -15 20 15 60
----------------------------------------------------------------------------
Net effect................... na 0 10 15 20 15 60
============================================================================
Scorecard assuming enactment of
H.R. 4039:
OASDI taxes.................... na 58 146 80 0 0 284
OASDI benefits................. na 75 -87 -129 55 -15 -101
----------------------------------------------------------------------------
Net effect................... na -17 233 209 -55 15 385
----------------------------------------------------------------------------------------------------------------
Estimates of H.R. 4039 assume enactment on October 1, 1996.
Note.--The Social Security scorecard used by the House of Representatives reflects Social Security taxes and
benefits only. It does not include outlays of the OASI or DI trust funds for purposes other than benefit
payments. Therefore, the scorecard omits OASDI trust fund costs or savings such as those associated with
ending contracts with referral and monitoring agencies (a provision of the Contract with America Advancement
Act), and with extending DI demonstration project authority, permitting reimbursement to the Treasury for
expenses associated with income tax withholding, and requiring payments to penal institutions that provide
information about ineligible OASDI recipients (in H.R. 4039).
V. OTHER MATTERS REQUIRED TO BE DISCUSSED UNDER THE RULES OF THE HOUSE
A. Committee Oversight Findings and Recommendations
In compliance with clause 2(l)(3)(A) of rule XI of the
Rules of the House of Representatives, the Committee reports
that the need for this legislation was confirmed through its
ongoing oversight of the Social Security Administration and the
Social Security programs.
B. Summary of Findings and Recommendations of the Government Reform and
Oversight Committee
In compliance with clause 2(l)(3)(D) of rule XI of the
Rules of the House of Representatives, the Committee states
that no oversight findings and recommendations have been
submitted to this Committee by the Committee on Government
Reform and Oversight with respect to the provisions contained
in this bill.
C. Inflationary Impact Statement
In compliance with clause 2(l)(4) of rule XI of the Rules
of the House of Representatives, the Committee states that the
provisions of the bill are not expected to have any
inflationary impact on the economy.
VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
In compliance with clause 3 of rule XIII of the Rules of the
House of Representatives, changes in existing law made by the
bill, as reported, are shown as follows (existing law proposed
to be omitted is enclosed in black brackets, new matter is
printed in italic, existing law in which no change is proposed
is shown in roman):
SECTION 105 OF THE CONTRACT WITH AMERICA ADVANCEMENT ACT OF 1996
SEC. 105. DENIAL OF DISABILITY BENEFITS TO DRUG ADDICTS AND ALCOHOLICS.
(a) Amendments Relating to Title II Disability Benefits.--
(1) * * *
* * * * * * *
(5) Effective dates.--
(A) The amendments made by paragraphs (1) and
(4) shall apply to any individual who applies
for, or whose claim is finally adjudicated [by
the Commissioner of Social Security] with
respect to, benefits under title II of the
Social Security Act based on disability on or
after the date of the enactment of this Act,
and, in the case of any individual who has
applied for, and whose claim has been finally
adjudicated [by the Commissioner] with respect
to, such benefits before such date of
enactment, such amendments shall apply only
with respect to such benefits for months
beginning on or after January 1, 1997.
[(B) The amendments made by paragraphs (2)
and (3) shall apply with respect to benefits
for which applications are filed after the
third month following the month in which this
Act is enacted.]
(B) The amendments made by paragraphs (2) and
(3) shall take effect on July 1, 1996, with
respect to any individual--
(i) whose claim for benefits is
finally adjudicated on or after the
date of the enactment of this Act, or
(ii) whose entitlement to benefits is
based upon an entitlement
redetermination made pursuant to
subparagraph (C).
* * * * * * *
(D) For purposes of this paragraph, an
individual's claim, with respect to
supplemental security income benefits under
title XVI of the Social Security Act based on
disability, which has been denied in whole
before the date of the enactment of this Act,
may not be considered to be finally adjudicated
before such date if, on or after such date--
(i) there is pending a request for
either administrative or judicial
review with respect to such claim, or
(ii) there is pending, with respect
to such claim, a readjudication by the
Commissioner of Social Security
pursuant to relief in a class action or
implementation by the Commissioner of a
court remand order.
(b) Amendments Relating to SSI Benefits.--
(1) * * *
* * * * * * *
(5) Effective dates.--
(A) The amendments made by paragraphs (1) and
(4) shall apply to any individual who applies
for, or whose claim is finally adjudicated [by
the Commissioner of Social Security] with
respect to, supplemental security income
benefits under title XVI of the Social Security
Act based on disability on or after the date of
the enactment of this Act, and, in the case of
any individual who has applied for, and whose
claim has been finally adjudicated [by the
Commissioner] with respect to, such benefits
before such date of enactment, such amendments
shall apply only with respect to such benefits
for months beginning on or after January 1,
1997.
[(B) The amendments made by paragraphs (2)
and (3) shall apply with respect to
supplemental security income benefits under
title XVI of the Social Security Act for which
applications are filed after the third month
following the month in which this Act is
enacted.]
(B) The amendments made by paragraphs (2) and
(3) shall take effect on July 1, 1996, with
respect to any individual--
(i) whose claim for benefits is
finally adjudicated on or after the
date of the enactment of this Act, or
(ii) whose eligibility for benefits
is based upon an eligibility
redetermination made pursuant to
subparagraph (C).
* * * * * * *
(D) For purposes of this paragraph, an
individual's claim, with respect to
supplemental security income benefits under
title XVI of the Social Security Act based on
disability, which has been denied in whole
before the date of the enactment of this Act,
may not be considered to be finally adjudicated
before such date if, on or after such date--
(i) there is pending a request for
either administrative or judicial
review with respect to such claim, or
(ii) there is pending, with respect
to such claim, a readjudication by the
Commissioner of Social Security
pursuant to relief in a class action or
implementation by the Commissioner of a
court remand order.
* * * * * * *
----------
SECTION 201 OF THE SOCIAL SECURITY INDEPENDENCE AND PROGRAM
IMPROVEMENTS ACT OF 1994
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) * * *
* * * * * * *
(3) Nonpayment or termination of benefits.--
(A) * * *
[(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.]
* * * * * * *
(b) Amendments Relating to Supplemental Security Income
Benefits Under Title XVI of the Social Security Act.--
(1) * * *
* * * * * * *
(3) Nonpayment or termination of benefits.--
(A) * * *
(B) Referral, monitoring, and treatment.--
(i) * * *
[(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.]
* * * * * * *
----------
SOCIAL SECURITY ACT
* * * * * * *
TITLE II--FEDERAL OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE BENEFITS
* * * * * * *
federal old-age and survivors insurance trust fund and federal
disability insurance trust fund
Sec. 201. (a) * * *
* * * * * * *
(g)(1)(A) The Managing Trustee of the Trust Funds (which for
purposes of this paragraph shall include also the Federal
Hospital Insurance Trust Fund and the Federal Supplementary
Medical Insurance Trust Fund established by title XVIII) is
directed to pay from the Trust Funds into the Treasury--
(i) * * *
(ii) the amounts estimated (pursuant to the
applicable method prescribed under paragraph (4) of
this subsection) by the Commissioner of Social Security
which will be expended, out of moneys made available
for expenditures from the Trust Funds, during such
three-month period to cover the cost 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)
and the functions of the Social Security Administration
in connection with the withholding of taxes from
benefits, as described in section 207(c), pursuant to
requests by person entitled to such benefits.
Such payments shall be carried into the Treasury as the net
amount of repayments due the general fund account for
reimbursement of expenses incurred in connection with the
administration of titles II and XVIII of this Act and chapters
2 and 21 of the Internal Revenue Code of 1986. A final
accounting of such payments for any fiscal year shall be made
at the earliest practicable date after the close thereof. 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. Of the amounts authorized to be made available
out of the Federal Old-Age and Survivors Insurance Trust Fund
and the Federal Disability Insurance Trust Fund under the
preceding sentence, there are hereby authorized to be made
available from either or both of such Trust Funds for
continuing disability reviews--
(i) for fiscal year 1996, $260,000,000;
(ii) for fiscal year 1997, $360,000,000;
(iii) for fiscal year 1998, $570,000,000;
(iv) for fiscal year 1999, $720,000,000;
(v) for fiscal year 2000, $720,000,000;
(vi) for fiscal year 2001, $720,000,000; and
(vii) for fiscal year 2002, $720,000,000.
For purposes of this subparagraph, the term ``continuing
disability review'' means a review conducted pursuant to
section 221(i) and a review or disability eligibility
redetermination conducted to determine the continuing
disability and eligibility of a recipient of benefits under the
supplemental security income program under title XVI, including
any review or redetermination conducted pursuant to section 207
or 208 of the Social Security Independence and program
Improvements Act of 1994 (Public Law 103-296) and the functions
of the Social Security Administration in connection with the
withholding of taxes from benefits, as described in section
207(c), pursuant to requests by persons entitled to such
benefits.
(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)),] subparagraph
(A)) and the functions of the Social Security
Administration in connection with the
withholding of taxes from benefits, as
described in section 207(c), pursuant to
requests by persons entitled to such benefits,
which should have been borne by the general
fund of the Treasury.
* * * * * * *
(C) After the determinations under subparagraph (B) have been
made for any fiscal year, the Commissioner 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)) and the functions of the Social
Security Administration in connection with the
withholding of taxes from benefits, as described in
section 207(c), pursuant to requests by persons
entitled to such benefits.
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 and the functions of
the Social Security Administration in connection with the
withholding of taxes from benefits as described in section
207(c) shall be made pursuant to the applicable method
prescribed under paragraph (4).
* * * * * * *
(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)). The Boards of Trustees of such
Trust Funds shall prescribe before January 1, 1997, the method
of determining the costs which should be borne by the general
fund in the Treasury of carrying out the functions of the
Social Security Administration in connection with the
withholding of taxes from benefits, as described in section
207(c), pursuant to requests by persons entitled to such
benefits. 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.
* * * * * * *
old-age and survivors insurance benefit payments
Old-Age Insurance Benefits
Sec. 202. (a) * * *
* * * * * * *
Limitation on Payments to Prisoners and Certain Other Inmates of
Publicly Funded Institutions
(x)(1)(A) Notwithstanding any other provision of this title,
no monthly benefits shall be paid under this section or under
section 223 to any individual for any month [during] throughout
which such individual--
(i) is confined in a jail, prison, or other penal
institution or correctional facility pursuant to his
conviction of [an offense punishable by imprisonment
for more than 1 year (regardless of the actual sentence
imposed)] a criminal offense, or
(ii) is confined by court order in an institution at
public expense in connection with--
(I) a verdict or finding that the individual
is guilty but insane, with respect to [an
offense punishable by imprisonment for more
than 1 year] a criminal offense,
* * * * * * *
(3)(A) Notwithstanding the provisions of section 552a of
title 5, United States Code, or any other provision of Federal
or State law, any agency of the United States Government or of
any State (or political subdivision thereof) shall make
available to the Commissioner of Social Security, upon written
request, the name and social security account number of any
individual who is confined as described in paragraph (1) if the
confinement is under the jurisdiction of such agency and the
Commissioner of Social Security requires such information to
carry out the provisions of this section.
* * * * * * *
(B)(i) The Commissioner shall enter into an agreement, with
any interested State or local institution comprising a jail,
prison, penal institution, correctional facility, or other
institution a purpose of which is to confine individuals as
described in paragraph (1)(A), under which--
(I) the institution shall provide to the
Commissioner, on a monthly basis and in a manner
specified by the Commissioner, the names, social
security account numbers, dates of birth, confinement
commencement dates, and, to the extent available to the
institution, such other identifying information
concerning the individuals confined in the institution
as the Commissioner may require for the purpose of
carrying out paragraph (1); and
(II) except as provided in clause (ii), the
Commissioner shall pay to the institution, with respect
to information described in subclause (I) concerning
each individual who is confined therein as described in
paragraph (1)(A), to whom a benefit under this title is
payable for the month preceding the first month of such
confinement, and whose benefit under this title ceases
to be payable as a result of the application of this
subsection, $400 (subject to reduction under clause
(iii)) if the institution furnishes the information to
the Commissioner within 30 days after the date such
individual's confinement in such institution begins, or
$200 (subject to reduction under clause (iii)) if the
institution furnishes the information after 30 days
after such date but within 90 days after such date.
(ii) No amount shall be payable to an institution with
respect to information concerning an individual under an
agreement entered into under clause (i) if, prior to the
Commissioner's receipt of the information, the Commissioner has
determined that benefits under this title are no longer payable
to such individual as a result of the application of this
subsection.
(iii) The dollar amounts specified in clause (i)(II) shall be
reduced by 50 percent if the Commissioner is also required to
make a payment to the institution with respect to the same
individual under an agreement entered into under section
1611(e)(1)(I).
(iv) There shall be transferred from the Federal Old-Age and
Survivors Insurance Trust Fund and the Federal Disability
Insurance Trust Fund, as appropriate, such sums as may be
necessary to enable the Commissioner to make payments to
institutions required by clause (i)(II). Sums so transferred
shall be treated as direct spending for purposes of the
Balanced Budget and Emergency Deficit Control Act of 1985 and
excluded from budget totals in accordance with section 13301 of
the Budget Enforcement Act of 1990.
(v) The Commissioner is authorized to provide, on a
reimbursable basis, information obtained pursuant to agreements
entered into under clause (i) to any Federal or federally-
assisted cash, food, or medical assistance program for
eligibility purposes.
* * * * * * *
assignment
Sec. 207. (a) * * *
* * * * * * *
(c) Nothing in this section shall be construed to prohibit
withholding taxes from any benefit under this title, if such
withholding is done pursuant to a request made in accordance
with section 3402(p)(1) of the Internal Revenue Code of 1986 by
the person entitled to such benefit.
* * * * * * *
disability determinations
Sec. 221. (a) * * *
* * * * * * *
(d)(1) Any individual dissatisfied with any determination
under subsection (a), (b), (c), or (g) shall be entitled to a
hearing thereon by the Commissioner of Social Security to the
same extent as is provided in section 205(b) with respect to
decisions of the Commissioner of Social Security, and to
judicial review of the Commissioner's final decision after such
hearing as is provided in section 205(g).
(2) No determination under this section shall be reviewed by
any person, tribunal, or governmental agency, except as
provided in paragraph (1).
* * * * * * *
TITLE XVI--SUPPLEMENTAL SECURITY INCOME FOR THE AGED, BLIND, AND
DISABLED
* * * * * * *
Part A--Determination of Benefits
ELIGIBILITY FOR AND AMOUNT OF BENEFITS
Definition of Eligible Individual
Sec. 1611. (a) * * *
* * * * * * *
(e)(1)(A) * * *
* * * * * * *
(I)(i) The Commissioner shall enter into an agreement, with
any interested State or local [institution described in clause
(i) or (ii) of section 202(x)(1)(A) the primary purpose of
which is to confine individuals as described in section
202(x)(1)(A),] institution comprising a jail, prison, penal
institution, or correctional facility, or with any other
interested State or local institution a purpose of which is to
confine individuals as described in section 202(x)(1)(A)(ii),
under which--
(I) the institution shall provide to the
Commissioner, on a monthly basis and in a manner
specified by the Commissioner, the names, social
security account numbers, dates of birth, confinement
commencement dates, and, to the extent available to the
institution, such other identifying information
concerning the inmates of the institution as the
Commissioner may require for the purpose of carrying
out paragraph (1); and
(II) except as provided in clause (ii), the
Commissioner shall pay to any such institution, with
respect to each [inmate of the institution who is
eligible for a benefit under this title for the month
preceding the first month throughout which such inmate
is in such institution and] individual who is eligible
for a benefit under this title for the month preceding
the first month throughout which the individual is an
inmate of the jail, prison, penal institution, or
correctional facility, or is confined in the
institution as described in section 202(x)(1)(A)(ii),
and who becomes ineligible for such benefit as a result
of the application of this [subparagraph] paragraph,
$400 (subject to reduction under clause (iii)) if the
institution furnishes the information described in
subclause (I) to the Commissioner within 30 days after
the date such individual becomes an inmate of such
institution, or $200 (subject to reduction under clause
(iii)) if the institution furnishes such information
after 30 days after such date but within 90 days after
such date.
(ii) No amount shall be payable to an institution with
respect to information concerning an inmate under an agreement
entered into under clause (i) if, prior to the Commissioner's
receipt of the information, the Commissioner has determined
that the inmate is no longer an eligible individual or eligible
spouse for purposes of this title as a result of the
application of this paragraph.
(iii) The dollar amounts specified in clause (i)(II) shall be
reduced by 50 percent if the Commissioner is also required to
make a payment to the institution with respect to the same
individual under an agreement entered into under section
202(x)(3)(B).
[(ii)(I) The provisions of section 552a of title 5, United
States Code, shall not apply to any agreement entered into
under clause (i) or to information exchanged pursuant to such
agreement.
[(II) The Commissioner] (iv) The Commissioner is authorized
to provide, on a reimbursable basis, information obtained
pursuant to agreements entered into under clause (i) to any
Federal or federally-assisted cash, food, or medical assistance
program for eligibility purposes.
[(iii)] (v) Payments to institutions required by clause
(i)(II) shall be made from funds otherwise available for the
payment of benefits under this title and shall be treated as
direct spending for purposes of the Balanced Budget and
Emergency Deficit Control Act of 1985.
* * * * * * *
----------
SECTION 505 OF THE SOCIAL SECURITY DISABILITY AMENDMENTS OF 1980
authority for demonstration projects
Sec. 505. (a)(1) The Commissioner of Social Security shall
develop and carry out experiments and demonstration projects
designed to determine the relative advantages and disadvantages
of (A) various alternative methods of treating the work
activity of disabled beneficiaries under the old-age,
survivors, and disability insurance program, including such
methods as a reduction in benefits based on earnings, designed
to encourage the return to work of disabled beneficiaries and
(B) altering other limitations and conditions applicable to
such disabled beneficiaries (including, but not limited to,
lengthening the trial work period, altering the 24-month
waiting period for medicare benefits, altering the manner in
which such program is administered, earlier referral of
beneficiaries for rehabilitation, and greater use of employers
and others to develop, perform, and otherwise stimulate new
forms of rehabilitation), to the end that savings will accrue
to the Trust Funds, or to otherwise promote the objectives or
facilitate the administration of title II of the Social
Security Act. The Commissioner may expand the scope of any such
experiment or demonstration project to include any group of
applicants for benefits under such program with impairments
which may reasonably be presumed to be disabling for purposes
of such experiment or demonstration project, and may limit any
such experiment or demonstration project to any such group of
applicants, subject to the terms of such experiment or
demonstration project which shall define the extent of any such
presumption.
* * * * * * *
(3) In the case of any experiment or demonstration project
under paragraph (1) which is initiated before June 10, [1996]
1997, 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. No such experiment or project shall be
actually placed in operation unless at least ninety days prior
thereto a written report, prepared for purposes of notification
and information only and containing a full and complete
description thereof, has been transmitted by the Commissioner
to the Committee on Ways and Means of the House of
Representatives and to the Committee on Finance of the Senate.
Periodic reports on the progress of such experiments and
demonstration projects shall be submitted by the Commissioner
to such committees. When appropriate, such reports shall
include detailed recommendations for changes in administration
or law, or both, to carry out the objectives states in
paragraph (1).
(4) On or before June 9 in 1986 and each of the succeeding
fiscal years through 1995, and on or before October 1, 1996,
the Commissioner shall submit an interim report on the progress
of the experiments and demonstration projects carried out under
this subsection together with any related data and materials
which the Commissioner may consider appropriate.
* * * * * * *
(c) The Commissioner shall submit to the Congress a final
report with respect to all experiments and demonstration
projects carried out under this section (other than
demonstration projects conducted under section 5120 of the
Omnibus Budget Reconciliation Act of 1990) no later than
October 1, [1996] 1997.
* * * * * * *
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SECTION 203 OF THE PERSONAL RESPONSIBILITY AND WORK OPPORTUNITY
RECONCILIATION ACT OF 1996
SEC. 203. TREATMENT OF PRISONERS.
(a) * * *
* * * * * * *
(b) Study of Other Potential Improvements in the Collection
of Information Respecting Public Inmates.--
(1) Study.--The Commissioner of Social Security shall
conduct a study of the desirability, feasibility, and
cost of--
(A) establishing a system under which
Federal, State, and local courts would furnish
to the Commissioner such information respecting
court orders by which individuals are confined
in jails, prisons, or other public penal,
correctional, or medical facilities as the
Commissioner may require for the purpose of
carrying out [section 1611(e)(1)] sections
202(x) and 1611(e)(1) of the Social Security
Act; and
(B) requiring that State and local jails,
prisons, and other institutions that enter into
agreements with the Commissioner under [section
1611(e)(1)(I)] section 202(x)(3)(B) or
1611(e)(1)(I) of the Social Security Act
furnish the information required by such
agreements to the Commissioner by means of an
electronic or other sophisticated data exchange
system.
* * * * * * *
(c) Additional Report to Congress.--Not later than October 1,
1998, the Commissioner of Social Security shall provide to the
Committee on Finance of the Senate and the Committee on Ways
and Means of the House of Representatives a list of the
institutions that are and are not providing information to the
Commissioner under [section 1611(e)(1)(I) of the Social
Security Act (as added by this section).] sections 202(x)(3)(B)
and 1611(e)(1)(I) of the Social Security Act.
* * * * * * *
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SECTION 552a OF TITLE 5, UNITED STATES CODE
Sec. 552a. Records maintained on individuals
(a) Definitions.--For purposes of this section--
(1) * * *
* * * * * * *
(8) the term ``matching program''--
(A) * * *
(B) but does not include--
(i) * * *
* * * * * * *
(vi) matches performed for foreign
counterintelligence purposes or to
produce background checks for security
clearances of Federal personnel or
Federal contractor personnel; [or]
(vii) matches performed pursuant to
section 6103(l)(12) of the Internal
Revenue Code of 1986 and section 1144
of the Social Security Act; or
(viii) matches performed pursuant to
section 202(x) or 1611(e)(1) of the
Social Security Act;
* * * * * * *