[Congressional Bills 103th Congress] [From the U.S. Government Publishing Office] [H.R. 4277 Engrossed in House (EH)] 103d CONGRESS 2d Session H. R. 4277 _______________________________________________________________________ AN ACT To establish the Social Security Administration as an independent agency and to make other improvements in the old-age, survivors, and disability insurance program. 103d CONGRESS 2d Session H. R. 4277 _______________________________________________________________________ AN ACT To establish the Social Security Administration as an independent agency and to make other improvements in the old-age, survivors, and disability insurance program. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. (a) Short Title.--This Act may be cited as the ``Social Security Administrative Reform Act of 1994''. (b) Table of Contents.-- Sec. 1. Short title and table of contents. Sec. 2. Declaration of purposes. TITLE I--ESTABLISHMENT OF THE SOCIAL SECURITY ADMINISTRATION AS AN INDEPENDENT AGENCY Sec. 101. Establishment of the Social Security Administration as a separate, independent agency; responsibilities of the agency. Sec. 102. Social Security Board, executive director, deputy director, beneficiary ombudsman; other officers. Sec. 103. Personnel; budgetary matters; seal of office. Sec. 104. Transfers to the new Social Security Administration. Sec. 105. Transitional rules. Sec. 106. Conforming amendments to Titles II and XVI of the Social Security Act. Sec. 107. Other conforming amendments. Sec. 108. Rules of construction. Sec. 109. Effective dates. TITLE II--IMPROVEMENTS TO THE OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE PROGRAM Sec. 201. Restrictions on payment of benefits based on disability to substance abusers. Sec. 202. Issuance of physical documents in the form of bonds, notes, or certificates to the social security trust funds. Sec. 203. Explicit requirements for maintenance of telephone access to local offices of the Social Security Administration. Sec. 204. Expansion of State option to exclude service of election officials or election workers from coverage. Sec. 205. Use of social security numbers by States and local governments and Federal district courts for jury selection purposes. Sec. 206. Authorization for all States to extend coverage to State and local policemen and firemen under existing coverage agreements. Sec. 207. Limited exemption for Canadian ministers from certain self- employment tax liability. Sec. 208. Exclusion of totalization benefits from the application of the windfall elimination provision. Sec. 209. Exclusion of military reservists from application of the government pension offset and windfall elimination provisions. Sec. 210. Repeal of the facility-of-payment provision. Sec. 211. Maximum family benefits in guarantee cases. Sec. 212. Authorization for disclosure by the Secretary of Health and Human Services of information for purposes of public or private epidemiological and similar research. Sec. 213. Misuse of symbols, emblems, or names in reference to social security programs and agencies. Sec. 214. Increased penalties for unauthorized disclosure of social security information. Sec. 215. Increase in authorized period for extension of time to file annual earnings report. Sec. 216. Extension of disability insurance program demonstration project authority. Sec. 217. Cross-matching of social security account number information and employer identification number information maintained by the Department of Agriculture. Sec. 218. Certain transfers to railroad retirement account made permanent. Sec. 219. Authorization for use of social security account numbers by department of labor in administration of Federal workers' compensation laws. Sec. 220. Coverage under FICA of Federal employees transferred temporarily to international organizations. Sec. 221. Extension of the FICA tax exemption and certain tax rules to individuals who enter the United States under a visa issued under section 101 of the Immigration and Nationality Act. Sec. 222. Study of rising costs of disability insurance benefits. Sec. 223. Commission on childhood disability. Sec. 224. Disregard deemed income and resources of ineligible spouse in determining continued eligibility under section 1619(b). Sec. 225. Plans for achieving self-support not disapproved within 60 days to be deemed approved. Sec. 226. Temporary authority to approve a limited number of plans for achieving self-support that include housing goals. Sec. 227. Regulations regarding completion of plans for achieving self- support. Sec. 228. Treatment of certain grant, scholarship, or fellowship income as earned income for SSI purposes. Sec. 229. SSI eligibility for students temporarily abroad. Sec. 230. Disregard of cost-of-living increases for continued eligibility for work incentives. Sec. 231. Expansion of the authority of the Social Security Administration to prevent, detect, and terminate fraudulent claims for SSI benefits. Sec. 232. Disability review required for SSI recipients who are 18 years of age. Sec. 233. Continuing disability reviews. Sec. 234. Technical and clerical amendments. SEC. 2. DECLARATION OF PURPOSES. The purposes of this Act are as follows: (1) To establish the Social Security Administration as an independent agency, separate from the Department of Health and Human Services. (2) To charge the Social Security Administration with administration of the old-age, survivors, and disability insurance program and supplemental security income program. (3) To establish a Social Security board as head of the Social Security Administration and define the powers and duties of such Board. (4) To establish an Executive Director of the Administration and define the powers and duties of the Executive Director. (5) To provide for delegating major authorities to the Board and the Executive Director. (6) To make other improvements in the old-age, survivors, and disability insurance program under title II of the Social Security Act. TITLE I--ESTABLISHMENT OF THE SOCIAL SECURITY ADMINISTRATION AS AN INDEPENDENT AGENCY SEC. 101. ESTABLISHMENT OF THE SOCIAL SECURITY ADMINISTRATION AS A SEPARATE, INDEPENDENT AGENCY; RESPONSIBILITIES OF THE AGENCY. Section 701 of the Social Security Act (42 U.S.C. 901) is amended to read as follows: ``social security administration ``Sec. 701. There is hereby established, as an independent agency in the executive branch of the Government, a Social Security Administration. It shall be the duty of the Administration to administer the old-age, survivors, and disability insurance program under title II and the supplemental security income program under title XVI.''. SEC. 102. SOCIAL SECURITY BOARD, EXECUTIVE DIRECTOR, DEPUTY DIRECTOR, BENEFICIARY OMBUDSMAN; OTHER OFFICERS. (a) In General.--Section 702 of the Social Security Act (42 U.S.C. 902) is amended to read as follows: ``social security board; executive director; other officers ``Social Security Board ``Sec. 702. (a)(1)(A) The Administration shall be governed by a Social Security Board. The Board shall be composed of three members appointed by the President, by and with the advice and consent of the Senate. The members shall be chosen on the basis of their integrity, impartiality, and good judgment, and shall be individuals who are, by reason of their education, experience, and attainments, exceptionally qualified to perform the duties of members of the Board. ``(B)(i) Except as provided in clauses (ii) and (iii), members of the Board shall be appointed for terms of six years. A member of the Board may be removed only pursuant to a finding by the President of neglect of duty or malfeasance in office. The President shall transmit any such finding to the Speaker of the House of Representatives and the majority leader of the Senate not later than five days after the date on which such finding is made. ``(ii) Of the members first appointed-- ``(I) one shall be appointed for a term of 2 years, ``(II) one shall be appointed for a term of 4 years, and ``(III) one shall be appointed for a term of 6 years, as designated by the President at the time of appointment. Such members shall be appointed after active consideration of recommendations made by the chairman of the Committee on Ways and Means of the House of Representatives and of recommendations made by the chairman of the Committee on Finance of the Senate. ``(iii) The President may not nominate an individual for appointment to a term of office as member of the Board before the commencement of the President's term of office in which the member's term of office commences. Any member appointed to a term of office after the commencement of such term may serve under such appointment only for the remainder of such term. A member may, at the request of the President, serve for not more than one year after the expiration of his or her term until his or her successor has taken office. A member of the Board may be appointed for additional terms. ``(C) Not more than two members of the Board shall be of the same political party. ``(D) A member of the Board may not, during his or her term as member, engage in any other business, vocation, profession, or employment. A member of the Board may continue as a member of the Board for not longer than the 30-day period beginning on the date such member first fails to meet the requirements of the preceding sentence. ``(E) Two members of the Board shall constitute a quorum, except that one member may hold hearings. ``(F) A member of the Board shall be designated by the President to serve as Chairperson of the Board for a term of 4 years. ``(G) The Board shall meet at the call of the Chairperson or two members of the Board. ``(2) Each member of the Board shall be compensated at the rate provided for level II of the Executive Schedule. ``(3) The Board shall-- ``(A) govern by regulation the old-age, survivors, and disability insurance program under title II and the supplemental security income program under title XVI, ``(B) establish the Administration and oversee its efficient and effective operation, ``(C) establish policy and devise long-term plans to promote and maintain the effective implementation of programs referred to in subparagraph (A), ``(D) appoint an Executive Director of the Administration, as described in subsection (b), to act as the chief operating officer of the Administration responsible for administering the programs referred to in subparagraph (A), ``(E) constitute three of the members of the Board of Trustees of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund, with the Chairperson of the Social Security Board serving as Chairperson of such Board of Trustees, ``(F) prepare an annual budget for the Administration, which shall be submitted by the President to the Congress without revision, together with the President's annual budget for the Administration, ``(G) study and make recommendations to the Congress and the President as to the most effective methods of providing economic security through social insurance, supplemental security income, and related programs and as to legislation and matters of administrative policy concerning the programs referred to in subparagraph (A), ``(H) provide the Congress and the President with the ongoing actuarial and other analysis undertaken by the Administration with respect to the programs referred to in subparagraph (A) and any other information relating to such programs, and ``(I) conduct policy analysis and research relating to the programs referred to in subparagraph (A). ``(4)(A) The Board may prescribe such rules and regulations as the Board determines necessary or appropriate to carry out the functions of the Administration. The regulations prescribed by the Board shall be subject to the rulemaking procedures established under section 553 of title 5, United States Code. ``(B) The Board may establish, alter, consolidate, or discontinue such organizational units or components within the Administration as the Board considers necessary or appropriate to carry out its functions, except that this subparagraph shall not apply with respect to any unit, component, or position provided for by this Act. ``(C) The Board may, with respect to the administration of the old- age, survivors, and disability insurance program under title II and the supplemental security income program under title XVI, assign duties, and delegate, or authorize successive redelegations of, authority to act and to render decisions, to such officers and employees as the Board may find necessary. Within the limitations of such delegations, redelegations, or assignments, all official acts and decisions of such officers and employees shall have the same force and effect as though performed or rendered by the Board. ``Executive Director ``(b)(1) There shall be in the Administration an Executive Director who shall be appointed by the Social Security Board. ``(2)(A) The Executive Director shall be appointed for a term of four years. An individual appointed to a term of office as Executive Director after the commencement of such term of office may serve under such appointment only for the remainder of such term. An individual may, at the request of the Chairperson of the Board, serve as Executive Director after the expiration of his or her term for not more than one year until his or her successor has taken office. An individual may be appointed as Executive Director for additional terms. ``(B) An individual may be removed from the office of Executive Director before completion of his or her term only for cause found by the Board. ``(3) The Executive Director shall be compensated at the rate provided for level II of the Executive Schedule. ``(4) The Executive Director shall-- ``(A) constitute the chief operating officer of the Administration, responsible for administering, in accordance with applicable statutes and regulations, the old-age, survivors, and disability insurance program under title II and the supplemental security income program under title XVI, ``(B) maintain an efficient and effective operational structure for the Administration, ``(C) implement the long-term plans of the Board to promote and maintain the effective implementation of such programs, ``(D) report annually to the Board on program costs under titles II and XVI, make annual budgetary recommendations to the Board for the ongoing administrative costs of the Administration under this Act, and defend the recommendations before the Board, ``(E) advise the Board and the Congress on the effect on the administration of such programs of proposed legislative changes in such programs, ``(F) serve as Secretary of the Board of Trustees of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund, ``(G) report in December of each year to the Board for transmittal to the Congress concerning the administrative endeavors and accomplishments of the Administration, and ``(H) carry out such additional duties as are assigned by the Board from time to time. Any reference to the Board in this Act or any other provision of law in connection with the exercise of a function of the Board which is delegated to the Executive Director pursuant to this section shall be considered a reference to the Executive Director. ``Deputy Director of Social Security ``(c)(1) There shall be in the Office of the Executive Director a Deputy Director, who shall be appointed by and serve at the pleasure of the Executive Director. ``(2) The Deputy Director shall be compensated at the rate provided for level III of the Executive Schedule. ``(3) The Deputy Director shall perform such duties and exercise such powers as the Executive Director shall from time to time assign or delegate. The Deputy Director shall be Acting Executive Director of the Administration during the absence or disability of the Executive Director and, unless the Board designates another officer of the Government as Acting Executive Director, in the event of a vacancy in the office of the Executive Director. ``General Counsel ``(d)(1) There shall be in the Administration a General Counsel, who shall be appointed by and serve at the pleasure of the Board. The General Counsel shall be the principal legal officer in the Administration. ``(2) The General Counsel shall be compensated at the rate provided for level IV of the Executive Schedule. ``Inspector General ``(e)(1) There shall be in the Administration an Office of the Inspector General. Such Office shall be headed by an Inspector General appointed in accordance with the Inspector General Act of 1978. ``(2) The Inspector General shall be compensated at the rate provided for level IV of the Executive Schedule. ``Beneficiary Ombudsman ``(f)(1) There shall be in the Administration an Office of the Beneficiary Ombudsman, to be headed by a Beneficiary Ombudsman appointed by the Board. ``(2)(A) The Beneficiary Ombudsman shall be appointed for a term of five years, except that the individual first appointed to the Office of Beneficiary Ombudsman shall be appointed for a term ending September 30, 2000. An individual appointed to a term of office as Beneficiary Ombudsman after the commencement of such term may serve under such appointment only for the remainder of such term. An individual may, at the request of the Chairperson of the Board, serve as Beneficiary Ombudsman after the expiration of his or her term for not more than one year until his or her successor has taken office. An individual may be appointed as Beneficiary Ombudsman for additional terms. ``(B) An individual may be removed from the office of Beneficiary Ombudsman before completion of his or her term only for cause found by the Board. ``(3) The Beneficiary Ombudsman shall be compensated at the rate provided for level V of the Executive Schedule. ``(4) The duties of the Beneficiary Ombudsman are as follows: ``(A) To represent within the Administration's decisionmaking process the interests and concerns of beneficiaries under the old-age, survivors, and disability insurance program under title II and the supplemental security income program under title XVI. ``(B) To review the Administration's policies and procedures for possible adverse effects on such beneficiaries. ``(C) To recommend within the Administration's decisionmaking process changes in policies which have caused problems for such beneficiaries. ``(D) To help resolve the problems under such programs of individual beneficiaries in unusual or difficult circumstances, as determined by the Administration. ``(E) To represent within the Administration's decisionmaking process the views of beneficiaries in the design of forms and the issuance of instructions. ``(5) The Board shall assure that the Office of the Beneficiary Ombudsman has staff sufficient to enable the Beneficiary Ombudsman to efficiently carry out his or her duties. Such staff shall be located in the regional offices, program centers, and central office of the Administration. ``(6) The annual report of the Board under section 704 shall include a description of the activities of the Beneficiary Ombudsman. ``Administrative Law Judge ``(g)(1) There shall be in the Administration an Office of the Chief Administrative Law Judge, who shall be appointed by the Board. The duty of the Chief Administrative Law Judge shall be to administer the affairs of the administrative law judges serving in the Administration in a manner so as to ensure that hearings and other business are conducted by the administrative law judges in accordance with applicable law and regulations. ``(2) The Chief Administrative Law Judge shall report directly to the Board.''. (b) Conforming Amendments Relating to Composition of Board of Trustees of OASDI Trust Funds.--Section 201(c) of such Act (42 U.S.C. 401(c)) is amended-- (1) in the first sentence, by striking ``shall be composed of'' and all that follows down through ``ex officio'' and inserting the following: ``shall be composed of the members of the Social Security Board, the Secretary of the Treasury, the Secretary of Health and Human Services, all ex officio''; (2) by inserting after the first sentence the following new sentence: ``The Chairperson of the Social Security Board shall be the Chairperson of the Board of Trustees.''; and (3) by striking ``Commissioner of Social Security'' and inserting ``Executive Director of the Social Security Administration''. (c) Interim Authority of the Commissioner.--The President shall nominate for appointment the initial members of the Social Security Board not later than April 1, 1995. In the event that, as of October 1, 1995, all members of the Social Security Board have not entered upon office, until all members of the Board have entered upon office, the officer serving on October 1, 1995, as Commissioner of Social Security in the Department of Health and Human Services (or Acting Commissioner, if applicable), or such officer's successor, shall, while continuing to serve as Commissioner of Social Security (or Acting Commissioner) in such Department, serve as head of the Social Security Administration established under section 701 of the Social Security Act (as amended by this Act) and shall assume the powers and duties of such Board and of the Executive Director under such Act (as amended by this Act). SEC. 103. PERSONNEL; BUDGETARY MATTERS; SEAL OF OFFICE. Section 703 of the Social Security Act (42 U.S.C. 903) is amended to read as follows: ``administrative duties of the social security board ``Personnel ``Sec. 703. (a)(1) The Social Security Board shall appoint such additional officers and employees as it considers necessary to carry out its functions. Except as otherwise provided in any other provision of law, such officers and employees shall be appointed, and their compensation shall be fixed, in accordance with title 5, United States Code. ``(2) The Board may procure the services of experts and consultants in accordance with the provisions of section 3109 of title 5, United States Code. ``(3) The Director of the Office of Personnel Management shall authorize for the Administration a total number of Senior Executive Service positions which is greater than the number of such positions authorized in the Social Security Administration in the Department of Health and Human Services as of immediately before the date of the enactment of the Social Security Administrative Reform Act of 1994, to the extent that the greater number of such authorized positions is specified in the comprehensive workforce plan as established and revised by the Board under subsection (b)(1). The total number of such positions authorized for the Administration pursuant to such section 3133 shall not at any time be less than the number of such authorized positions as of immediately before such date. ``(4) In addition to the positions of the Administration in the Executive Schedule specified in section 702, the Administration is authorized six additional positions at level IV of the Executive Schedule and six additional positions at level V of the Executive Schedule. ``Budgetary Matters ``(b) Appropriations requests for staffing and personnel of the Administration shall be based upon a comprehensive workforce plan, which shall be established and revised from time to time by the Board. ``Seal of Office ``(c) The Board shall cause a seal of office to be made for the Administration of such design as the Board shall approve. Judicial notice shall be taken of such seal.''. SEC. 104. TRANSFERS TO THE NEW SOCIAL SECURITY ADMINISTRATION. (a) Functions.--There are transferred to the Social Security Administration all functions carried out by the Secretary of Health and Human Services with respect to the programs and activities the administration of which is vested in the Social Security Administration by reason of this Act and the amendments made thereby. The Social Security Board shall allocate such functions in accordance with sections 701, 702, and 703 of the Social Security Act (as amended by this Act). (b) Personnel, Assets, Etc.--(1) There are transferred from the Department of Health and Human Services to the Social Security Administration, for appropriate allocation by the Social Security Board in the Social Security Administration-- (A) the personnel (other than administrative law judges) employed in connection with the functions transferred by this Act and the amendments made thereby, as considered appropriate by the Board in consultation with the Secretary of Health and Human Services, (B) such number of administrative law judges as are necessary to carry out the functions transferred by this Act and the amendments made thereby, as determined by the Board in consultation with the Secretary of Health and Human Services, and (C) the assets, liabilities, contracts, property, records, and unexpended balance of appropriations, authorizations, allocations, and other funds employed, held, or used in connection with such functions, arising from such functions, or available, or to be made available, in connection with such functions. (2) Unexpended funds transferred pursuant to this subsection shall be used only for the purposes for which the funds were originally authorized and appropriated. (3) The Secretary of Health and Human Services shall terminate-- (A) six positions in the Department of Health and Human Services placed in level IV of the Executive Schedule (or equivalent positions) other than positions specifically required under section 5315 of title 5, United States Code, or any other provision of law, and (B) six positions in such Department placed in level V of the Executive Schedule (or equivalent positions) other than positions specifically required under section 5316 of such title or any other provision of law. (4) The transfer pursuant to this section of full-time personnel (except special Government employees) and part-time personnel holding permanent positions shall not cause any such employees to be separated or reduced in grade or compensation for 1 year after such transfer or October 1, 1995, whichever is later. (c) Abolishment of Office of Commissioner in the Department of Health and Human Services.--Effective upon the entry upon office of all initial members of the Social Security Board pursuant to section 702 of the Social Security Act (as amended by this Act), the position of Commissioner of Social Security in the Department of Health and Human Services is abolished. SEC. 105. TRANSITIONAL RULES. (a) Interim Authority for Appointment and Compensation.--At any time on or after the date of the enactment of this Act-- (1) any of the officers provided for in section 702 of the Social Security Act (as amended by this Act) may enter upon office, as provided in such section, and (2) the Social Security Board, upon entry upon office of all of the members thereof, may prescribe regulations providing for the orderly transfer of proceedings before the Secretary of Health and Human Services to the Social Security Board. Funds available to any official or component of the Department of Health and Human Services, functions of which are transferred to the Social Security Board or the Social Security Administration by this Act, may be used, with the approval of the Director of the Office of Management and Budget, to pay the compensation and expenses of any officer entering upon office pursuant to this section until such time as funds for that purpose are otherwise available. (b) Continuation of Orders, Determinations, Rules, Regulations, Etc.--All orders, determinations, rules, regulations, permits, contracts, collective bargaining agreements, recognitions of labor organizations, certificates, licenses, and privileges-- (1) which have been issued, made, promulgated, granted, or allowed to become effective, in the exercise of functions (A) which were exercised by the Secretary of Health and Human Services (or his delegate), and (B) which relate to functions which, by reason of this Act, the amendments made thereby, and regulations prescribed thereunder, are vested in the Social Security Board, and (2) which are in effect immediately before October 1, 1995, shall (to the extent that they relate to functions described in paragraph (1)(B)) continue in effect according to their terms until modified, terminated, suspended, set aside, or repealed, in accordance with law, by such Board. (c) Continuation of Proceedings.--The provisions of this Act (including the amendments made thereby) shall not affect any proceeding pending before the Secretary of Health and Human Services immediately before October 1, 1995, with respect to functions vested (by reason of this Act, the amendments made thereby, and regulations prescribed thereunder) in the Social Security Board, except that such proceedings, to the extent that they relate to such functions, shall continue before such Board. Orders shall be issued under any such proceeding, appeals taken therefrom, and payments shall be made pursuant to such orders, in like manner as if this Act had not been enacted, and orders issued in any such proceeding shall continue in effect until modified, terminated, superseded, or repealed by such Board, by a court of competent jurisdiction, or by operation of law. (d) Continuation of Suits.--Except as provided in this subsection-- (1) the provisions of this Act shall not affect suits commenced prior to October 1, 1995; and (2) in all such suits proceedings shall be had, appeals taken, and judgments rendered, in the same manner and effect as if this Act had not been enacted. No cause of action, and no suit, action, or other proceeding commenced by or against any officer in his official capacity as an officer of the Department of Health and Human Services, shall abate by reason of the enactment of this Act. Causes of action, suits, actions, or other proceedings may be asserted by or against the United States and the Social Security Administration, or such official of such Administration as may be appropriate, and, in any litigation pending immediately before October 1, 1995, the court may at any time, on its own motion or that of a party, enter an order which will give effect to the provisions of this subsection (including, where appropriate, an order for substitution of parties). (e) Continuation of Penalties.--This Act shall not have the effect of releasing or extinguishing any criminal prosecution, penalty, forfeiture, or liability incurred as a result of any function which (by reason of this Act), the amendments made thereby, and regulations prescribed thereunder) is vested in the Social Security Board. (f) Judicial Review.--Orders and actions of the Social Security Board in the exercise of functions vested in such Board under this Act (and the amendments made thereby) shall be subject to judicial review to the same extent and in the same manner as if such orders had been made and such actions had been taken by the Secretary of Health and Human Services in the exercise of such functions immediately before October 1, 1995. Any statutory requirements relating to notice, hearings, action upon the record, or administrative review that apply to any function so vested in such Board shall continue to apply to the exercise of such function by such Board. (g) Exercise of Functions.--In the exercise of the functions vested in the Social Security Board under this Act, the amendments made thereby, and regulations prescribed thereunder, such Board shall have the same authority as that vested in the Secretary of Health and Human Services with respect to the exercise of such functions immediately preceding the vesting of such functions in such Board, and actions of such Board shall have the same force and effect as when exercised by such Secretary. (h) Operation of Transitional Rules in the Event of Interim Authority in the Commissioner.--For purposes of this section, in any case in which the powers and duties to be transferred to the Social Security Board are transferred to the Commissioner of Social Security (or acting Commissioner) in the Department of Health and Human Services for an interim period pursuant to section 102(c), the preceding provisions of this section shall apply with respect to the transfer of such powers and duties to and from such Commissioner (or acting Commissioner) pursuant to section 102(c) in the same manner and to the same extent as they would have applied to a direct transfer from the Secretary of Health and Human Services to the Social Security Board if all members of the Board had entered upon office. SEC. 106. CONFORMING AMENDMENTS TO TITLES II AND XVI OF THE SOCIAL SECURITY ACT. (a) In General.--Title II of the Social Security Act (other than section 201, section 218(d), section 226, section 226A, and section 231(c)) and title XVI of such Act are each amended-- (1) by striking, wherever it appears therein, ``Secretary of Health and Human Services'' and inserting ``Social Security Board''; (2) by striking, wherever it appears therein, ``Department of Health and Human Services'' and inserting ``Social Security Administration''; (3) by striking, wherever it appears therein, ``Department'' (but only if it is not immediately succeeded by the words ``of Health and Human Services'', and only if it is used in reference to the Department of Health and Human Services) and inserting ``Administration''; (4) by striking, wherever it appears therein, each of the following words (but, in the case of any such word only if such word refers to the Secretary of Health and Human Services): ``Secretary'', ``Secretary's'', ``his'', ``him'', and ``he'', and inserting (in the case of the word ``Secretary'') ``Social Security Board'', (in the case of the word ``Secretary's'') ``Board's'', (in the case of the word ``his'') ``the Board's'', (in the case of the word ``him'') ``the Board'', and (in the case of the word ``he'') ``the Board''; and (5) by striking, wherever it appears therein, ``Internal Revenue Code of 1954'' and inserting ``Internal Revenue Code of 1986''. (b) Amendments to Section 218.--Section 218(d) of such Act (42 U.S.C. 418(d)) is amended by striking ``Secretary'' each place it appears in paragraphs (3) and (7) and inserting ``Social Security Board''. (c) Amendments to Section 222.--Section 222(d) of such Act (42 U.S.C. 422(d)) is amended-- (1) in the last sentence of paragraph (1), by striking ``Commissioner of Social Security'' and inserting ``Executive Director of the Social Security Administration''; and (2) in the first sentence of paragraph (2), by striking ``Commissioner of Social Security'' and inserting ``Executive Director of the Social Security Administration''. (d) Amendment to Section 231.--Section 231(c) of such Act (42 U.S.C. 431(c)) is amended by striking ``Secretary determines'' and inserting ``Social Security Board and the Secretary jointly determine''. (e) Amendment to Section 1615.--Section 1615(d) of such Act (422 U.S.C. 1832d(d)) is amended by striking ``Commissioner of Social Security'' and inserting ``Executive Director of the Social Security Administration''. SEC. 107. OTHER CONFORMING AMENDMENTS. Title VII of the Social Security Act is amended-- (1) by striking section 704 (42 U.S.C. 904) and inserting the following new section: ``reports ``Sec. 704. The Secretary and the Social Security Board shall make full reports to Congress, within 120 days after the beginning of each regular session, of the administration of the functions with which they are charged under this Act. In addition to the number of copies of such reports authorized by other law to be printed, there is hereby authorized to be printed not more than 5,000 copies of each such report for use by the Secretary and Social Security Board for distribution to Members of Congress and to State and other public or private agencies or organizations participating in or concerned with the programs provided for in this Act.''; (2) in section 709(b)(2) (42 U.S.C. 910(b)(2)), by striking ``(as estimated by the Secretary)'' and inserting ``, as estimated by the Social Security Board or the Secretary (whichever administers the program involved),''; and (3) by adding at the end thereof the following new section: ``duties and authority of secretary ``Sec. 712. (a) The Secretary shall perform the duties imposed upon him by this Act and shall also have the duty of studying and making recommendations as to the most effective methods of providing economic security and as to legislation and matters of administrative policy concerning the programs administered by the Secretary and related subjects; except that nothing in this section shall be construed to require the Secretary to make studies or recommendations with respect to programs administered by the Social Security Administration. ``(b) The Secretary is authorized to appoint and fix the compensation of such officers and employees, and to make such expenditures, as may be necessary for carrying out the Secretary's functions under this Act. Appointments of attorneys and experts may be made without regard to the civil service laws.''. SEC. 108. RULES OF CONSTRUCTION. (a) References to the Department of Health and Human Services.-- Whenever any reference is made in any provision of law (other than this Act or a provision of law amended by this Act), regulation, rule, record, court order, or other document to the Department of Health and Human Services with respect to such Department's functions under the old-age, survivors, and disability insurance program under title II of the Social Security Act or the supplemental security income program under title XVI of such Act, such reference shall be considered a reference to the Social Security Administration. (b) References to the Secretary of Health and Human Services.-- Whenever any reference is made in any provision of law (other than this Act or a provision of law amended by this Act), regulation, rule, record, court order, or other document to the Secretary of Health and Human Services with respect to such Secretary's functions under such programs, such reference shall be considered a reference to the Social Security Board. (c) References to Other Officers and Employees.--Whenever any reference is made in any provision of law (other than this Act or a provision of law amended by this Act), regulation, rule, record, or document to any other officer or employee of the Department of Health and Human Services with respect to such officer's or employee's functions under such programs, such reference shall be considered a reference to the appropriate officer or employee of the Social Security Administration. SEC. 109. EFFECTIVE DATES. (a) In General.--Sections 101, 102(a), 103, 104, 106, 107, and 108 of this Act (and the amendments made thereby) shall take effect October 1, 1995. (b) Exceptions.--Section 102(b) of this Act shall take effect upon the entry upon office of all initial members of the Social Security Board. Sections 102(c) and 105 of this Act shall take effect on the date of the enactment of this Act. (c) New Spending Authority.--Any new spending authority provided by this title shall be effective for any fiscal year only to such extent or in such amounts as are provided in advance in appropriation Acts. TITLE II--IMPROVEMENTS TO THE OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE PROGRAM SEC. 201. RESTRICTIONS ON PAYMENT OF BENEFITS BASED ON DISABILITY TO SUBSTANCE ABUSERS. (a) Amendments Relating to Benefits Based on Disability Under Title II of the Social Security Act.-- (1) Required payment of benefits to representative payees.-- (A) In general.--Section 205(j)(1) of the Social Security Act (42 U.S.C. 405(j)(1)) is amended-- (i) by inserting after the first sentence the following new sentence: ``In the case of an individual entitled to benefits based on disability, if alcoholism or drug addiction is a contributing factor material to the Secretary's determination that the individual is under a disability, certification of payment of such benefits to a representative payee shall be deemed to serve the interest of such individual under this title.''; and (ii) in the last sentence, by inserting ``, if the interest of the individual under this title would be served thereby,'' after ``alternative representative payee or''. (B) Effective date.--The amendments made by subparagraph (A) shall apply with respect to benefits for months beginning after 180 days after the date of the enactment of this Act. (C) Study regarding feasibility, cost, and equity of requiring representative payees for all disability beneficiaries suffering from alcoholism or drug addiction.-- (i) Study.--As soon as practicable after the date of the enactment of this Act, the Secretary of Health and Human Services shall conduct a study of the representative payee program. In such study, the Secretary shall examine-- (I) the feasibility, cost, and equity of requiring representative payees for all individuals entitled to benefits based on disability under title II or XVI of the Social Security Act who suffer from alcoholism or drug addiction, irrespective of whether the alcoholism or drug addiction was material in any case to the Secretary's determination of disability, (II) the feasibility of and appropriate timetable for providing benefits through non-cash means, including (but not limited to) vouchers, debit cards, and electronic benefits transfer systems, (III) the extent to which child beneficiaries are afflicted by drug addition or alcoholism and ways of addressing such affliction, including the feasibility of requiring treatment, and (IV) the extent to which children's representative payees are afflicted by drug addiction or alcoholism, and methods to identify children's representative payees afflicted by drug addition or alcoholism and to ensure that benefits continue to be provided to beneficiaries appropriately. (ii) Report.--Not later than April 1, 1995, the Secretary shall transmit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report setting forth the findings of the Secretary based on such Study. Such report shall include such recommendations for administrative or legislative changes as the Secretary considers appropriate. (2) Increased reliance on professional representative payees.-- (A) Preference required for organizational representative payees.--Section 205(j)(2)(C) of such Act (42 U.S.C. 405(j)(2)(C)) is amended by adding at the end the following new clause: ``(v) In the case of an individual entitled to benefits based on disability, if alcoholism or drug addiction is a contributing factor material to the Secretary's determination that the individual is under a disability, when selecting such individual's representative payee, preference shall be given to-- ``(I) a community-based nonprofit social service agency licensed or bonded by the State, ``(II) a State or local government agency whose mission is to carry out income maintenance, social service, or health care-related activities, or ``(III) a State or local government agency with fiduciary responsibilities, (or a designee of such an agency if the Secretary deems it appropriate), unless the Secretary determines that selection of such an agency would not be appropriate.''. (B) Availability of public agencies and other qualified organizations to serve as representative payees.--Section 205(j)(4) of such Act (42 U.S.C. 405(j)(4)) is amended-- (i) in subparagraph (A)-- (I) by striking ``exceed the lesser of--'' and inserting ``exceed--''; and (II) by striking clauses (i) and (ii) and inserting the following: ``(i) in any case in which an individual is entitled to benefits based on disability and alcoholism or drug addiction is a contributing factor material to the Secretary's determination that the individual is under a disability, 10 percent of the monthly benefit involved, or ``(ii) in any other case, the lesser of-- ``(I) 10 percent of the monthly benefit involved, or ``(II) $25.00 per month.''; (ii) in subparagraph (B)-- (I) by inserting ``State or local government agency whose mission is to carry out income maintenance, social service, or health care-related activities, any State or local government agency with fiduciary responsibilities, or any'' after ``means any''; (II) by striking ``representative payee and which,'' and inserting ``representative payee, if such agency,''; (III) by striking ``, and'' at the end of clause (ii) and inserting a period; and (IV) by striking clause (iii); and (iii) by striking subparagraph (D), effective July 1, 1994. (C) Definition.--Section 205(j) of such Act (42 U.S.C. 405(j)) is amended by adding at the end the following new paragraph: ``(7) For purposes of this subsection, the term `benefit based on disability' of an individual means a disability insurance benefit of such individual under section 223 or a child's, widow's, or widower's insurance benefit of such individual under section 202 based on such individual's disability.''. (3) Nonpayment or termination of benefits.-- (A) In general.--Section 225 of such Act (42 U.S.C. 425) is amended-- (i) by striking the heading and inserting the following: ``additional rules relating to benefits based on disability ``Suspension of Benefits''; (ii) by inserting before subsection (b) the following new heading: ``Continued Payments During Rehabilitation Program''; and (iii) by adding at the end the following new subsection: ``Nonpayment or Termination of Benefits Where Entitlement Involves Alcoholism or Drug Addiction ``(c)(1)(A) Notwithstanding any other provision of this title, in the case of any individual entitled to benefits based on disability, if alcoholism or drug addiction is a contributing factor material to the Secretary's determination that such individual is under a disability and such individual is determined by the Secretary not to be in compliance with the requirements of this subsection for a month, such benefits shall be suspended for a period commencing with such month and ending with the month preceding the first month, after the determination of noncompliance, in which such individual demonstrates that he or she has reestablished and maintained compliance with such requirements for the applicable period specified in paragraph (3). ``(B) For purposes of this subsection, in the case of an individual who is entitled to benefits based on disability for the first month ending after 180 days after the date of the enactment of the Social Security Administrative Reform Act of 1994, if such individual has a primary diagnosis of alcoholism or drug addiction, such alcoholism or drug addiction shall be treated as a contributing factor material to the Secretary's determination of disability. ``(2)(A) An individual described in paragraph (1) is in compliance with the requirements of this subsection for a month if such individual in such month undergoes any medical or psychological treatment that may be appropriate, for such individual's condition diagnosed as substance abuse or alcohol abuse and for the stage of such individual's rehabilitation, at an institution or facility approved for purposes of this subsection by the Secretary, and complies in such month with the terms, conditions, and requirements of such treatment and with requirements imposed by the Secretary under paragraph (6). ``(B) An individual described in paragraph (1) shall not be determined to be not in compliance with the requirements of this subsection for a month if access by such individual to such treatment is not reasonably available for that month, as determined under regulations of the Secretary. ``(3) The applicable period specified in this paragraph is-- ``(A) 2 consecutive months, in the case of a first determination that an individual is not in compliance with the requirements of this subsection, ``(B) 3 consecutive months, in the case of the second such determination with respect to the individual, and ``(C) 6 consecutive months, in the case of the third or subsequent such determination with respect to the individual. ``(4) In any case in which an individual's benefit is suspended for a period of 12 consecutive months for failure to comply with treatment described in paragraph (2) of this subsection, the month following such period shall be deemed, for purposes of section 223(a)(1) or subsection (d)(1)(G)(i), (e)(1), or (f)(1) of section 202 (as applicable), as the termination month with respect to such entitlement. ``(5)(A) Subject to subparagraph (B), monthly insurance benefits under this title which would be payable to any individual (other than the disabled individual to whom benefits are not payable by reason of this subsection) on the basis of the wages and self-employment income of such disabled individual but for the provisions of paragraph (1) or (4), shall be payable as though such disabled individual were receiving such benefits which are not payable under this subsection (and, in the case of a disabled individual whose entitlement is terminated under paragraph (4), as though such disabled individual's entitlement were not terminated). ``(B) If the monthly insurance benefits of a disabled individual referred to in subparagraph (A) are not payable by reason of termination of entitlement under paragraph (4), monthly insurance benefits which are payable to any other individual on the basis of the wages and self-employment income of such disabled individual pursuant to subparagraph (A) shall not be payable for any month after 2 years after the last month of such entitlement. ``(6)(A) The Secretary shall provide for the monitoring and testing of all individuals who are receiving benefits under this title and who as a condition of payment of such benefits are required to be undergoing treatment and complying with the terms, conditions, and requirements thereof as described in paragraph (2)(A), in order to assure such compliance and to determine the extent to which the imposition of such requirements is contributing to the achievement of the purposes of this title. The Secretary shall annually submit to the Congress a full and complete report on the Secretary's activities under this paragraph. Each such annual report shall include the number and percentage of such individuals who did not receive regular drug testing during the year covered by the report. ``(B) The Secretary, in consultation with drug and alcohol treatment professionals, shall issue regulations-- ``(i) defining appropriate treatment for alcoholics and drug addicts who are subject to required medical or psychological treatment under this subsection, and ``(ii) establishing guidelines to be used to review and evaluate their compliance, including measures of the progress of participants in such programs. ``(C)(i) For purposes of carrying out the requirements of subparagraphs (A) and (B), the Secretary shall establish in each State a referral and monitoring agency for such State. ``(ii) Each referral and monitoring agency for a State shall-- ``(I) identify appropriate placements, for individuals residing in such State who are entitled to benefits based on disability and with respect to whom alcoholism or drug addiction is a contributing factor material to the Secretary's determination that they are under a disability, where they may obtain treatment described in paragraph (2)(A), ``(II) refer such individuals to such placements for such treatment, and ``(III) monitor compliance with the requirements of paragraph (2)(A) by individuals who are referred by the agency to such placements and promptly report failures to comply to the Secretary. ``(7) In the case of any individual who is entitled to a benefit based on disability for any month, if alcoholism or drug addiction is a contributing factor material to the Secretary's determination that the individual is under a disability, payment of any past-due monthly insurance benefits under this title to which such individual is entitled shall be made in any month only to the extent that the sum of-- ``(A) the amount of such past-due benefit paid in such month, and ``(B) the amount of any benefit for the preceding month under such current entitlement which is payable in such month, does not exceed 200 percent of the amount of such benefit for the preceding month. ``(8) In the case of any individual entitled to benefits based on disability, if alcoholism or drug addiction is a contributing factor material to the Secretary's determination that such individual is under a disability, the month following the 36-month period beginning with such individual's first month of entitlement shall be deemed, for purposes of section 223(a)(1) or subsection (d)(1)(G)(i), (e)(1), or (f)(1) of section 202 (as applicable), as the termination month with respect to such entitlement, and such individual shall be deemed not to be entitled to any past-due benefits under such entitlement remaining unpaid as of the end of such 36-month period. Such individual may not be entitled to benefits based on disability for any month after such 36-month period if, with respect to such entitlement, alcoholism or drug addition is a contributing factor material to the Secretary's determination that such individual is under a disability. ``(9) For purposes of this subsection, the term `benefit based on disability' of an individual means a disability insurance benefit of such individual under section 223 or a child's, widow's, or widower's insurance benefit of such individual under section 202 based on the disability of such individual.''. (B) Preservation of medicare benefits.--Section 226 of such Act (42 U.S.C. 426) is amended by adding at the end the following: ``(i) For purposes of this section, each person whose benefit for any month is not payable by reason of paragraph (1) of section 225(c) (and is not terminated by reason of paragraph (4) or (8) of section 225(c)) shall be treated as entitled to such benefit for such month if such person would be entitled to such benefit for such month in the absence of such section.''.paragraph (other than paragraphs (6)(C) and (8) of section 225(c) of the Social Security Act added by this paragraph) shall apply with respect to benefits based on disability (as defined in section 225(c)(9) of the Social Security Act, added by this section) of individuals becoming entitled to such benefits for months beginning after 180 days after the date of the enactment of this Act. Section 225(c)(6)(C) of the Social Security Act shall take effect 180 days after the date of the enactment of this Act. Section 225(c)(8) of the Social Security Act (added by this section) shall apply with respect to benefits for months ending after 180 days after the date of the enactment of this Act, and, for purposes of such section 225(c)(8), in the case of any individual entitled to benefits based on disability (as so defined) for the first month ending after 180 days after the date of the enactment of this Act, such month shall be treated as such individual's first month of entitlement to such benefits. (4) Irrelevance of legality of services performed in determining substantial gainful activity.-- (A) In general.--Section 223(d)(4) of such Act (42 U.S.C. 423(d)(4)) is amended-- (i) by inserting ``(A)'' after ``(4)''; and (ii) by adding at the end the following new subparagraph: ``(B) In determining under subparagraph (A) when services performed or earnings derived from services demonstrate an individual's ability to engage in substantial gainful activity, the Secretary apply the criteria described in subparagraph (A) with respect to services performed by any individual without regard to the legality of such services.''. (B) Effective date.--The amendments made by this paragraph shall take effect on the date of the enactment of this Act. (b) Amendments Relating to Supplemental Security Income Benefits Under Title XVI of the Social Security Act.-- (1) Required payment of benefits to representative payees.-- (A) In general.--Section 1631(a)(2)(A) of the Social Security Act (42 U.S.C. 1383(a)(2)(A)) is amended-- (i) in clause (ii), by adding at the end the following: ``In the case of an individual entitled to benefits under this title by reason of disability, if alcoholism or drug addiction is a contributing factor material to the Secretary's determination that the individual is disabled, the payment of such benefits to a representative payee shall be deemed to serve the interest of such individual under this title.''; and (ii) in clause (iii), by striking ``to the individual or eligible spouse or to an alternative representative payee of the individual or eligible spouse'' and inserting ``to an alternative representative payee of the individual or eligible spouse or, if the interest of the individual under this title would be served thereby, to the individual or eligible spouse''. (B) Conforming amendment.--Section 1631(a)(2)(B)(viii)(II) of such Act (42 U.S.C. 1383(a)(2)(B)(viii)(II)) is amended by striking ``15 years'' and all that follows and inserting ``of 15 years, or (if alcoholism or drug addiction is a contributing factor material to the Secretary's determination that the individual is disabled) is entitled to benefits under this title by reason of disability.''. (C) Effective date.--The amendments made by subparagraphs (A) and (B) shall apply with respect to benefits for months beginning after 180 days after the date of the enactment of this Act. (2) Increased reliance on professional representative payees.-- (A) Preference required for organizational representative payees.--Section 1631(a)(2)(B) of such Act (42 U.S.C. 1383(a)(2)(B)) is amended-- (i) by redesignating clauses (vii) through (xii) as clauses (viii) through (xiii), respectively; (ii) by inserting after clause (vi) the following: ``(vii) In the case of an individual entitled to benefits under this title by reason of disability, if alcoholism or drug addiction is a contributing factor material to the Secretary's determination that the individual is disabled, when selecting such individual's representative payee, preference shall be given to-- ``(I) a community-based nonprofit social service agency licensed or bonded by the State; ``(II) a State or local government agency whose mission is to carry out income maintenance, social service, or health care-related activities; or ``(III) a State or local government agency with fiduciary responsibilities, (or a designee of such an agency if the Secretary deems it appropriate), unless the Secretary determines that selection of such an agency would not be appropriate.''; (iii) in clause (viii) (as so redesignated), by striking ``clause (viii)'' and inserting ``clause (ix)''; (iv) in clause (ix) (as so redesignated), by striking ``(vii)'' and inserting ``(viii)''; (v) in clause (xiii) (as so redesignated)-- (I) by striking ``(xi)'' and inserting ``(xii)''; and (II) by striking ``(x)'' and inserting ``(xi)''. (B) Availability of public agencies and other qualified organizations to serve as representative payees.--Section 1631(a)(2)(D) of such Act (42 U.S.C. 1383(a)(2)(D)) is amended-- (i) in clause (i)-- (I) by striking ``exceed the lesser of--'' and inserting ``exceed--''; and (II) by striking subclauses (I) and (II) and inserting the following: ``(I) in any case in which an individual is entitled to benefits under this title by reason of disability and alcoholism or drug addiction is a contributing factor material to the Secretary's determination that the individual is disabled, 10 percent of the monthly benefit involved, or ``(II) in any other case, the lesser of-- ``(aa) 10 percent of the monthly benefit involved, or ``(bb) $25.00 per month.''; (ii) in clause (ii)-- (I) by inserting ``State or local government agency whose mission is to carry out income maintenance, social service, or health care-related activities, any State or local government agency with fiduciary responsibilities, or any'' after ``means any''; (II) by inserting a comma after ``service agency''; (III) by adding ``and'' at the end of subclause (I); and (IV) in subclause (II)-- (aa) by adding ``and'' at the end of item (aa); (bb) by striking ``; and'' at the end of item (bb) and inserting a period; and (cc) by striking item (cc); and (iii) by striking clause (iv), effective July 1, 1994. (3) Nonpayment or termination of benefits.-- (A) In general.--Section 1611(e)(3) of such Act (42 U.S.C. 1382(e)(3)), is amended by redesignating subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A) the following: ``(B)(i) Notwithstanding any other provision of this title, in the case of any individual entitled to benefits under this title solely by reason of disability, if alcoholism or drug addiction is a contributing factor material to the Secretary's determination that such individual is disabled and such individual is determined by the Secretary not to be in compliance with the requirements of this subparagraph for a month, such benefits shall be suspended for a period commencing with such month and ending with the month preceding the first month, after the determination of noncompliance, in which such individual demonstrates that he or she has reestablished and maintained compliance with such requirements for the applicable period specified in clause (iii). ``(ii)(I) An individual described in clause (i) is in compliance with the requirements of this subparagraph for a month if the individual in such month undergoes any medical or psychological treatment that may be appropriate, for the individual's condition diagnosed as substance abuse or alcohol abuse and for the stage of the individual's rehabilitation, at an institution or facility approved for purposes of this subparagraph by the Secretary, and complies in such month with the terms, conditions, and requirements of such treatment and with requirements imposed by the Secretary under subparagraph (C). ``(II) An individual described in clause (i) shall not be determined to be not in compliance with the requirements of this subparagraph for a month if access by such individual to such treatment is not reasonably available for the month, as determined under regulations of the Secretary. ``(iii) The applicable period specified in this clause is-- ``(I) 2 consecutive months, in the case of a 1st determination that an individual is not in compliance with the requirements of this subparagraph; ``(II) 3 consecutive months, in the case of the 2nd such determination with respect to the individual; or ``(III) 6 consecutive months, in the case of the 3rd or subsequent such determination with respect to the individual. ``(iv) An individual shall not be an eligible individual for purposes of this title for the 12-month period that begins with the end of any period of 12 consecutive months for which the benefits of the individual under this title have been suspended by reason of this subparagraph. ``(v) In the case of any individual entitled to benefits under this title by reason of disability, if alcoholism or drug addiction is a contributing factor material to the Secretary's determination that such individual is disabled, such individual may not be entitled to such benefits by reason of disability (or any past-due benefits under such entitlement) for any month after the 36-month period beginning with such individual's first month of such entitlement, notwithstanding section 1619(a). ``(vi)(I) The Secretary shall not, in a month, pay to an individual described in clause (i) benefits under this title the payment of which is past due, in an amount that exceeds the amount of benefits under this title which are payable to the individual for the month and the payment of which is not past due. ``(II) As used in subclause (I) of this clause, the term `benefits under this title' includes supplementary payments of the type described in section 1616(a) and payments pursuant to an agreement entered into under section 212(a) of Public Law 93-66.''. (B) Referral, monitoring, and treatment.--Section 1611(e)(3)(C) of such Act (42 U.S.C. 1382(e)(3)(C)), as so designated by the amendment made by subparagraph (A) of this paragraph, is amended-- (i) by adding at the end the following: ``Each such annual report shall include the number and percentage of such individuals who did not receive regular drug testing during the year covered by the report.''; (ii) by inserting ``(i)'' after ``(C)''; and (iii) by adding after and below the end following: ``(ii) The Secretary, in consultation with drug and alcohol treatment professionals, shall issue regulations-- ``(I) defining appropriate treatment for alcoholics and drug addicts who are subject to required medical or psychological treatment under this subparagraph; and ``(II) establishing guidelines to be used to review and evaluate their compliance, including measures of the progress of participants in such programs. ``(iii)(I) For purposes of carrying out the requirements of clauses (i) and (ii), the Secretary shall establish in each State a referral and monitoring agency for the State. ``(II) Each referral and monitoring agency for a State shall-- ``(aa) identify appropriate placements, for individuals residing in the State who are entitled to benefits under this title by reason of disability and with respect to whom alcoholism or drug addiction is a contributing factor material to the Secretary's determination that they are disabled, where they may obtain treatment described in subparagraph (B)(ii)(I); ``(bb) refer such individuals to such placements for such treatment; and ``(cc) monitor compliance with the requirements of subparagraph (B) by individuals who are referred by the agency to such placements, and promptly report to the Secretary any failure to comply with such requirements.''. (C) Preservation of medicaid benefits.--Section 1634 of such Act (42 U.S.C. 13283c) is amended by adding at the end the following: ``(e) Each person to whom benefits under this title by reason of disability are not payable for any month solely by reason of section 1611(e)(3)(B) shall be treated, for purposes of title XIX, as receiving benefits under this title for such month.''. (D) Conforming amendments.--Section 1611(e)(3) of such Act (42 U.S.C. 1382(e)(3)), as amended by subparagraphs (A) and (B) of this paragraph, is amended-- (i) in subparagraph (A), by striking ``(B)'' and inserting ``(C)''; and (ii) in subparagraph (C), by inserting ``or (B)'' after ``(A)''. (E) Effective date.-- (i) In general.--Except as provided in clauses (ii) and (iii), the amendments made by this paragraph shall apply with respect to benefits for months beginning after 180 days after the date of the enactment of this Act. (ii) Time limitation on benefits.--Section 1611(e)(3)(B)(v) of the Social Security Act (as added by the amendment made by subparagraph (A) of this paragraph) shall apply with respect to benefits for months ending after 180 days after the date of the enactment of this Act, and, for purposes of such section, in the case of any individual entitled to benefits by reason of disability for the first month ending after 180 days after the date of the enactment of this Act, such month shall be treated as such individual's first month of entitlement to such benefits. (iii) Establishment of referral and monitoring agencies.--Section 1611(e)(3)(C)(iii) of the Social Security Act (as added by the amendment made by subparagraph (B)(iii) of this paragraph) shall take effect 180 days after the date of the enactment of this Act. (4) Irrelevance of legality of substantial gainful activity.-- (A) In general.--Section 1614(a)(3)(D) of such Act (42 U.S.C. 1382c(a)(3)(D)) is amended by adding at the end the following: ``The Secretary shall make determinations under this title with respect to substantial gainful activity, without regard to the legality of the activity.''. (B) Effective date.--The amendment made by subparagraph (A) shall take effect on the date of the enactment of this Act. (c) Effective Date.--The amendments made by the preceding provisions of this section shall apply to benefits payable for months beginning 180 or more days after the date of the enactment of this Act. (d) Demonstration Projects.-- (1) In general.--The Secretary of Health and Human Services shall develop and carry out demonstration projects designed to explore innovative referral, monitoring, and treatment approaches with respect to-- (A) individuals who are entitled to disability insurance benefits or child's, widow's, or widower's insurance benefits based on disability under title II of the Social Security Act, and (B) individuals who are eligible for supplemental security income benefits under title XVI of such Act based solely on disability, in cases in which alcoholism or drug addiction is a contributing factor material to the Secretary's determination that individuals are under a disability. (2) Scope.--The demonstration projects developed under paragraph (1) shall be of sufficient scope and shall be carried out on a wide enough scale to permit a thorough evaluation of the alternative approaches under consideration while giving assurance that the results derived from the projects will obtain generally in the operation of the programs involved without committing such programs to the adoption of any particular system either locally or nationally. (3) Final report.--The Secretary shall submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate no later than December 31, 1997, a final report on the demonstration projects carried out under this subsection, together with any related data and materials which the Secretary may consider appropriate. The authority under this section shall terminate upon the transmittal of such final report. SEC. 202. ISSUANCE OF PHYSICAL DOCUMENTS IN THE FORM OF BONDS, NOTES, OR CERTIFICATES TO THE SOCIAL SECURITY TRUST FUNDS. (a) Requirement that Obligations Issued to the OASDI Trust Funds Be Evidenced by Paper Instruments in the Form of Bonds, Notes, or Certificates of Indebtedness Setting Forth Their Terms.--Section 201(d) of the Social Security Act (42 U.S.C. 401(d)) is amended by inserting after the fifth sentence the following new sentence: ``Each obligation issued for purchase by the Trust Funds under this subsection shall be evidenced by a paper instrument in the form of a bond, note, or certificate of indebtedness issued by the Secretary of the Treasury setting forth the principal amount, date of maturity, and interest rate of the obligation, and stating on its face that the obligation shall be incontestable in the hands of the Trust Fund to which it is issued, that the obligation is supported by the full faith and credit of the United States, and that the United States is pledged to the payment of the obligation with respect to both principal and interest.''. (b) Payment to the OASDI Trust Funds from the General Fund of the Treasury of Interest on Obligations, and of Proceeds from the Sale or Redemption of Obligations, Required to Be in the Form of Checks.-- Section 201(f) of such Act (42 U.S.C. 401(f)) is amended by adding at the end the following new sentence: ``Payment from the general fund of the the Treasury to either of the Trust Funds of any such interest or proceeds shall be in the form of paper checks drawn on such general fund to the order of such Trust Fund.''. (c) Effective Date.-- (1) In general.--The amendments made by this section shall apply with respect to obligations issued, and payments made, after 60 days after the date of the enactment of this Act. (2) Treatment of outstanding obligations.--Not later than 60 days after the date of the enactment of this Act, the Secretary of the Treasury shall issue to the Federal Old-Age and Survivors Insurance Trust Fund or the Federal Disability Insurance Trust Fund, as applicable, a paper instrument, in the form of a bond, note, or certificate of indebtedness, for each obligation which has been issued to the Trust Fund under section 201(d) of the Social Security Act and which is outstanding as of such date. Each such document shall set forth the principal amount, date of maturity, and interest rate of the obligation, and shall state on its face that the obligation shall be incontestable in the hands of the Trust Fund to which it was issued, that the obligation is supported by the full faith and credit of the United States, and that the United States is pledged to the payment of the obligation with respect to both principal and interest. SEC. 203. EXPLICIT REQUIREMENTS FOR MAINTENANCE OF TELEPHONE ACCESS TO LOCAL OFFICES OF THE SOCIAL SECURITY ADMINISTRATION. (a) Maintenance of Service to Local Offices.-- (1) In general.--Section 5110(a) of the Omnibus Budget Reconciliation Act of 1990 (104 Stat. 1388-272) is amended by adding at the end the following new sentence: ``In carrying out the requirements of the preceding sentence, the Secretary shall reestablish and maintain in service at least the same number of telephone lines to each such local office as was in place as of such date, including telephone sets for connections to such lines.''. (2) Effective date.--The Secretary of Health and Human Services shall ensure that the requirements of the amendment made by paragraph (1) are carried out no later than 90 days after the date of the enactment of this Act. (3) GAO report.--The Comptroller General of the United States shall make an independent determination of the number of telephone lines to each local office of the Social Security Administration which are in place as of 90 days after the enactment of this Act and shall report his findings to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate no later than 150 days after the date of the enactment of this Act. (b) Maintenance of Toll-Free Telephone Number Service.--The Secretary of Health and Human Services shall ensure that toll-free telephone service provided by the Social Security Administration is maintained at a level which is at least equal to that in effect on the date of the enactment of this Act. SEC. 204. EXPANSION OF STATE OPTION TO EXCLUDE SERVICE OF ELECTION OFFICIALS OR ELECTION WORKERS FROM COVERAGE. (a) Limitation on Mandatory Coverage of State Election Officials and Election Workers Without State Retirement System.-- (1) Amendment to social security act.--Section 210(a)(7)(F)(iv) of the Social Security Act (42 U.S.C. 410(a)(7)(F)(iv)) (as amended by section 11332(a) of the Omnibus Budget Reconciliation Act of 1990) is amended by striking ``$100'' and inserting ``$1,000 with respect to service performed during 1995, and the adjusted amount determined under section 218(c)(8)(B) for any subsequent year with respect to service performed during such subsequent year''. (2) Amendment to fica.--Section 3121(b)(7)(F)(iv) of the Internal Revenue Code of 1986 (as amended by section 11332(b) of the Omnibus Budget Reconciliation Act of 1990) is amended by striking ``$100'' and inserting ``$1,000 with respect to service performed during 1995, and the adjusted amount determined under section 218(c)(8)(B) of the Social Security Act for any subsequent year with respect to service performed during such subsequent year''. (b) Conforming Amendments Relating to Medicare Qualified Government Employment.-- (1) Amendment to social security act.--Section 210(p)(2)(E) of the Social Security Act (42 U.S.C. 410(p)(2)(E)) is amended by striking ``$100'' and inserting ``$1,000 with respect to service performed during 1995, and the adjusted amount determined under section 218(c)(8)(B) for any subsequent year with respect to service performed during such subsequent year''. (2) Amendment to fica.--Section 3121(u)(2)(B)(ii)(V) of the Internal Revenue Code of 1986 is amended by striking ``$100'' and inserting ``$1,000 with respect to service performed during 1995, and the adjusted amount determined under section 218(c)(8)(B) of the Social Security Act for any subsequent year with respect to service performed during such subsequent year''. (c) Authority for States To Modify Coverage Agreements With Respect to Election Officials and Election Workers.--Section 218(c)(8) of the Social Security Act (42 U.S.C. 418(c)(8)) is amended-- (1) by striking ``on or after January 1, 1968,'' and inserting ``at any time''; (2) by striking ``$100'' and inserting ``$1,000 with respect to service performed during 1995, and the adjusted amount determined under subparagraph (B) for any subsequent year with respect to service performed during such subsequent year''; and (3) by striking the last sentence and inserting the following new sentence: ``Any modification of an agreement pursuant to this paragraph shall be effective with respect to services performed in and after the calendar year in which the modification is mailed or delivered by other means to the Secretary.''. (d) Indexation of Exempt Amount.--Section 218(c)(8) of such Act (as amended by subsection (c)) is further amended-- (1) by inserting ``(A)'' after ``(8)''; and (2) by adding at the end the following new subparagraph: ``(B) For each year after 1995, the Secretary shall adjust the amount referred to in subparagraph (A) at the same time and in the same manner as is provided under section 215(a)(1)(B)(ii) with respect to the amounts referred to in section 215(a)(1)(B)(i), except that-- ``(i) for purposes of this subparagraph, 1993 shall be substituted for the calendar year referred to in section 215(a)(1)(B)(ii)(II), and ``(ii) such amount as so adjusted, if not a multiple of $100, shall be rounded to the next higher multiple of $100 where such amount is a multiple of $50 and to the nearest multiple of $100 in any other case. The Secretary shall determine and publish in the Federal Register each adjusted amount determined under this subparagraph not later than November 1 preceding the year for which the adjustment is made.''. (e) Effective Date.--The amendments made by subsections (a), (b), and (c) shall apply with respect to service performed on or after January 1, 1995. SEC. 205. USE OF SOCIAL SECURITY NUMBERS BY STATES AND LOCAL GOVERNMENTS AND FEDERAL DISTRICT COURTS FOR JURY SELECTION PURPOSES. (a) In General.--Section 205(c)(2) of the Social Security Act (42 U.S.C. 405(c)(2)) is amended-- (1) in subparagraph (B)(i), by striking ``(E)'' in the matter preceding subclause (I) and inserting ``(F)''; (2) by redesignating subparagraphs (E) and (F) as subparagraphs (F) and (G), respectively; and (3) by inserting after subparagraph (D) the following: ``(E)(i) It is the policy of the United States that-- ``(I) any State (or any political subdivision of a State) may utilize the social security account numbers issued by the Secretary for the additional purposes described in clause (ii) if such numbers have been collected and are otherwise utilized by such State (or political subdivision) in accordance with applicable law, and ``(II) any district court of the United States may use, for such additional purposes, any such social security account numbers which have been so collected and are so utilized by any State. ``(ii) The additional purposes described in this clause are the following: ``(I) Identifying duplicate names of individuals on master lists used for jury selection purposes. ``(II) Identifying on such master lists those individuals who are ineligible to serve on a jury by reason of their conviction of a felony. ``(iii) To the extent that any provision of Federal law enacted before the date of the enactment of this subparagraph is inconsistent with the policy set forth in clause (i), such provision shall, on and after that date, be null, void, and of no effect. ``(iv) For purposes of this subparagraph, the term `State' has the meaning such term has in subparagraph (D).''. (b) Effective Date.--The amendments made by subsection (a) shall take effect on the date of the enactment of this Act. SEC. 206. AUTHORIZATION FOR ALL STATES TO EXTEND COVERAGE TO STATE AND LOCAL POLICEMEN AND FIREMEN UNDER EXISTING COVERAGE AGREEMENTS. (a) In General.--Section 218(l) of the Social Security Act (42 U.S.C. 418(l)) is amended-- (1) in paragraph (1), by striking ``(1)'' after ``(l)'', and by striking ``the State of'' and all that follows through ``prior to the date of enactment of this subsection'' and inserting ``a State entered into pursuant to this section''; and (2) by striking paragraph (2). (b) Conforming Amendment.--Section 218(d)(8)(D) of such Act (42 U.S.C. 418(d)(8)(D)) is amended by striking ``agreements with the States named in'' and inserting ``State agreements modified as provided in''. (c) Effective Date.--The amendments made by this section shall apply with respect to modifications filed by States after the date of the enactment of this Act. SEC. 207. LIMITED EXEMPTION FOR CANADIAN MINISTERS FROM CERTAIN SELF- EMPLOYMENT TAX LIABILITY. (a) In General.--Notwithstanding any other provision of law, if-- (1) an individual performed services described in section 1402(c)(4) of the Internal Revenue Code of 1986 which are subject to tax under section 1401 of such Code, (2) such services were performed in Canada at a time when no agreement between the United States and Canada pursuant to section 233 of the Social Security Act was in effect, and (3) such individual was required to pay contributions on the earnings from such services under the social insurance system of Canada, then such individual may file a certificate under this section in such form and manner, and with such official, as may be prescribed in regulations issued under chapter 2 of such Code. Upon the filing of such certificate, notwithstanding any judgment which has been entered to the contrary, such individual shall be exempt from payment of such tax with respect to services described in paragraphs (1) and (2) and from any penalties or interest for failure to pay such tax or to file a self-employment tax return as required under section 6017 of such Code. (b) Period for Filing.--A certificate referred to in subsection (a) may be filed only during the 180-day period commencing with the date on which the regulations referred to in subsection (a) are issued. (c) Taxable Years Affected by Certificate.--A certificate referred to in subsection (a) shall be effective for taxable years ending after December 31, 1978, and before January 1, 1985. (d) Restriction on Crediting of Exempt Self-Employment Income.--In any case in which an individual is exempt under this section from paying a tax imposed under section 1401 of the Internal Revenue Code of 1986, any income on which such tax would have been imposed but for such exemption shall not constitute self-employment income under section 211(b) of the Social Security Act (42 U.S.C. 411(b)), and, if such individual's primary insurance amount has been determined under section 215 of such Act (42 U.S.C. 415), notwithstanding section 215(f)(1) of such Act, the Secretary of Health and Human Services shall recompute such primary insurance amount so as to take into account the provisions of this subsection. The recomputation under this subsection shall be effective with respect to benefits for months following approval of the certificate of exemption. SEC. 208. EXCLUSION OF TOTALIZATION BENEFITS FROM THE APPLICATION OF THE WINDFALL ELIMINATION PROVISION. (a) In General.--Section 215(a)(7) of the Social Security Act (42 U.S.C. 415(a)(7)) is amended-- (1) in subparagraph (A), by striking ``but excluding'' and all that follows through ``1937'' and inserting ``but excluding (I) a payment under the Railroad Retirement Act of 1974 or 1937, and (II) a payment by a social security system of a foreign country based on an agreement concluded between the United States and such foreign country pursuant to section 233''; and (2) in subparagraph (E), by inserting after ``in the case of an individual'' the following: ``whose eligibility for old- age or disability insurance benefits is based on an agreement concluded pursuant to section 233 or an individual''. (b) Conforming Amendment Relating to Benefits Under 1939 Act.-- Section 215(d)(3) of such Act (42 U.S.C. 415(d)(3)) is amended by striking ``but excluding'' and all that follows through ``1937'' and inserting ``but excluding (I) a payment under the Railroad Retirement Act of 1974 or 1937, and (II) a payment by a social security system of a foreign country based on an agreement concluded between the United States and such foreign country pursuant to section 233''. (c) Effective Date.--The amendments made by this section shall apply (notwithstanding section 215(f)(1) of the Social Security Act (42 U.S.C. 415(f)(1))) with respect to benefits payable for months after January 1995. SEC. 209. EXCLUSION OF MILITARY RESERVISTS FROM APPLICATION OF THE GOVERNMENT PENSION OFFSET AND WINDFALL ELIMINATION PROVISIONS. (a) Exclusion from Government Pension Offset Provisions.-- Subsections (b)(4), (c)(2), (e)(7), (f)(2), and (g)(4) of section 202 of the Social Security Act (42 U.S.C. 402 (b)(4), (c)(2), (e)(7), (f)(2), and (g)(4)) are each amended-- (1) in subparagraph (A)(ii), by striking ``unless subparagraph (B) applies.''; (2) in subparagraph (A), by striking ``The'' in the matter following clause (ii) and inserting ``unless subparagraph (B) applies. The''; and (3) in subparagraph (B), by redesignating the existing matter as clause (ii), and by inserting before such clause (ii) (as so redesignated) the following: ``(B)(i) Subparagraph (A)(i) shall not apply with respect to monthly periodic benefits based wholly on service as a member of a uniformed service (as defined in section 210(m)).''. (b) Exclusion From Windfall Elimination Provisions.--Section 215(a)(7)(A) of such Act (as amended by section 210(a) of this Act) and section 215(d)(3) of such Act (as amended by section 210(b) of this Act) are each further amended-- (1) by striking ``and'' before ``(II)''; and (2) by striking ``section 233'' and inserting ``section 233, and (III) a payment based wholly on service as a member of a uniformed service (as defined in section 210(m))''. (c) Effective Date.--The amendments made by this section shall apply (notwithstanding section 215(f) of the Social Security Act) with respect to benefits payable for months after January 1995. SEC. 210. REPEAL OF THE FACILITY-OF-PAYMENT PROVISION. (a) Repeal of Rule Precluding Redistribution Under Family Maximum.--Section 203(i) of the Social Security Act (42 U.S.C. 403(i)) is repealed. (b) Coordination Under Family Maximum of Reduction in Beneficiary's Auxiliary Benefits With Suspension of Auxiliary Benefits of Other Beneficiary Under Earnings Test.--Section 203(a)(4) of such Act (42 U.S.C. 403(a)(4)) is amended by striking ``section 222(b). Whenever'' and inserting the following: ``section 222(b). Notwithstanding the preceding sentence, any reduction under this subsection in the case of an individual who is entitled to a benefit under subsection (b), (c), (d), (e), (f), (g), or (h) of section 202 for any month on the basis of the same wages and self-employment income as another person-- ``(A) who also is entitled to a benefit under subsection (b), (c), (d), (e), (f), (g), or (h) of section 202 for such month, ``(B) who does not live in the same household as such individual, and ``(C) whose benefit for such month is suspended (in whole or in part) pursuant to subsection (h)(3) of this section, shall be made before the suspension under subsection (h)(3). Whenever''. (c) Conforming Amendment Applying Earnings Reporting Requirement Despite Suspension of Benefits.--The third sentence of section 203(h)(1)(A) of such Act (42 U.S.C. 403(h)(1)(A)) is amended by striking ``Such report need not be made'' and all that follows through ``The Secretary may grant'' and inserting the following: ``Such report need not be made for any taxable year-- ``(i) beginning with or after the month in which such individual attained age 70, or ``(ii) if benefit payments for all months (in such taxable year) in which such individual is under age 70 have been suspended under the provisions of the first sentence of paragraph (3) of this subsection, unless-- ``(I) such individual is entitled to benefits under subsection (b), (c), (d), (e), (f), (g), or (h) of section 202, ``(II) such benefits are reduced under subsection (a) of this section for any month in such taxable year, and ``(III) in any such month there is another person who also is entitled to benefits under subsection (b), (c), (d), (e), (f), (g), or (h) of section 202 on the basis of the same wages and self-employment income and who does not live in the same household as such individual. The Secretary may grant''. (d) Conforming Amendment Deleting Special Income Tax Treatment of Benefits No Longer Required by Reason of Repeal.--Section 86(d)(1) of the Internal Revenue Code of 1986 (relating to income tax on social security benefits) is amended by striking the last sentence. (e) Effective Dates.-- (1) The amendments made by subsections (a), (b), and (c) shall apply with respect to benefits payable for months after December 1995. (2) The amendment made by subsection (d) shall apply with respect to benefits received after December 31, 1995, in taxable years ending after such date. SEC. 211. MAXIMUM FAMILY BENEFITS IN GUARANTEE CASES. (a) In General.--Section 203(a) of the Social Security Act (42 U.S.C. 403(a)) is amended by adding at the end the following new paragraph: ``(10)(A) Subject to subparagraphs (B) and (C)-- ``(i) the total monthly benefits to which beneficiaries may be entitled under sections 202 and 223 for a month on the basis of the wages and self-employment income of an individual whose primary insurance amount is computed under section 215(a)(2)(B)(i) shall equal the total monthly benefits which were authorized by this section with respect to such individual's primary insurance amount for the last month of his prior entitlement to disability insurance benefits, increased for this purpose by the general benefit increases and other increases under section 215(i) that would have applied to such total monthly benefits had the individual remained entitled to disability insurance benefits until the month in which he became entitled to old-age insurance benefits or reentitled to disability insurance benefits or died, and ``(ii) the total monthly benefits to which beneficiaries may be entitled under sections 202 and 223 for a month on the basis of the wages and self-employment income of an individual whose primary insurance amount is computed under section 215(a)(2)(C) shall equal the total monthly benefits which were authorized by this section with respect to such individual's primary insurance amount for the last month of his prior entitlement to disability insurance benefits. ``(B) In any case in which-- ``(i) the total monthly benefits with respect to such individual's primary insurance amount for the last month of his prior entitlement to disability insurance benefits was computed under paragraph (6), and ``(ii) the individual's primary insurance amount is computed under subparagraph (B)(i) or (C) of section 215(a)(2) by reason of the individual's entitlement to old-age insurance benefits or death, the total monthly benefits shall equal the total monthly benefits that would have been authorized with respect to the primary insurance amount for the last month of his prior entitlement to disability insurance benefits if such total monthly benefits had been computed without regard to paragraph (6). ``(C) This paragraph shall apply before the application of paragraph (3)(A), and before the application of section 203(a)(1) of this Act as in effect in December 1978.''. (b) Conforming Amendment.--Section 203(a)(8) of such Act (42 U.S.C. 403(a)(8)) is amended by striking ``Subject to paragraph (7),'' and inserting ``Subject to paragraph (7) and except as otherwise provided in paragraph (10)(C),''. (c) Effective Date.--The amendments made by this section shall apply for the purpose of determining the total monthly benefits to which beneficiaries may be entitled under sections 202 and 223 of the Social Security Act based on the wages and self-employment income of an individual who-- (1) becomes entitled to an old-age insurance benefit under section 202(a) of such Act, (2) becomes reentitled to a disability insurance benefit under section 223 of such Act, or (3) dies, after January 1995. SEC. 212. AUTHORIZATION FOR DISCLOSURE BY THE SECRETARY OF HEALTH AND HUMAN SERVICES OF INFORMATION FOR PURPOSES OF PUBLIC OR PRIVATE EPIDEMIOLOGICAL AND SIMILAR RESEARCH. (a) In General.--Section 1106 of the Social Security Act (42 U.S.C. 1306) is amended-- (1) by redesignating subsections (d) and (e) as subsections (e) and (f), respectively; (2) in subsection (f) (as so redesignated), by striking ``subsection (d)'' and inserting ``subsection (e)''; and (3) by inserting after subsection (c) the following new subsection: ``(d) Notwithstanding any other provision of this section, in any case in which-- ``(1) information regarding whether an individual is shown on the records of the Secretary as being alive or deceased is requested from the Secretary for purposes of epidemiological or similar research which the Secretary finds may reasonably be expected to contribute to a national health interest, and ``(2) the requester agrees to reimburse the Secretary for providing such information and to comply with limitations on safeguarding and rerelease or redisclosure of such information as may be specified by the Secretary, the Secretary shall comply with such request, except to the extent that compliance with such request would constitute a violation of the terms of any contract entered into under section 205(r).''. (b) Availability of Information Returns Regarding Wages Paid Employees.--Section 6103(l)(5) of the Internal Revenue Code of 1986 (relating to disclosure of returns and return information to the Department of Health and Human Services for purposes other than tax administration) is amended-- (1) by striking ``for the purpose of'' and inserting ``for the purpose of--''; (2) by striking ``carrying out, in accordance with an agreement'' and inserting the following: ``(A) carrying out, in accordance with an agreement''; (3) by striking ``program.'' and inserting ``program; or''; and (4) by adding at the end the following new subparagraph: ``(B) providing information regarding the mortality status of individuals for epidemiological and similar research in accordance with section 1106(d) of the Social Security Act.''. (c) Effective Date.--The amendments made by this section shall apply with respect to requests for information made after the date of the enactment of this Act. SEC. 213. MISUSE OF SYMBOLS, EMBLEMS, OR NAMES IN REFERENCE TO SOCIAL SECURITY PROGRAMS AND AGENCIES. (a) Prohibition of Unauthorized Reproduction, Reprinting, or Distribution for Fee of Certain Official Publications.--Section 1140(a) of the Social Security Act (42 U.S.C. 1320b-10(a)) is amended-- (1) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively; (2) by inserting ``(1)'' after ``(a)''; and (3) by adding at the end the following new paragraph: ``(2) No person may, for a fee, reproduce, reprint, or distribute any item consisting of a form, application, or other publication of the Social Security Administration unless such person has obtained specific, written authorization for such activity in accordance with regulations which the Secretary shall prescribe.''. (b) Addition to Prohibited Words, Letters, Symbols, and Emblems.-- Paragraph (1) of section 1140(a) of such Act (as redesignated by subsection (a)) is further amended-- (1) in subparagraph (A) (as redesignated), by striking ``Administration', the letters `SSA' or `HCFA','' and inserting ``Administration', `Department of Health and Human Services', `Health and Human Services', `Supplemental Security Income Program', or `Medicaid', the letters `SSA', `HCFA', `DHHS', `HHS', or `SSI',''; and (2) in subparagraph (B) (as redesignated), by striking ``Social Security Administration'' each place it appears and inserting ``Social Security Administration, Health Care Financing Administration, or Department of Health and Human Services'', and by striking ``or of the Health Care Financing Administration''. (c) Exemption for Use of Words, Letters, Symbols, and Emblems of State and Local Government Agencies by Such Agencies.--Paragraph (1) of section 1140(a) of such Act (as redesignated by subsection (a)) is further amended by adding at the end the following new sentence: ``The preceding provisions of this subsection shall not apply with respect to the use by any agency or instrumentality of a State or political subdivision of a State of any words or letters which identify an agency or instrumentality of such State or of a political subdivision of such State or the use by any such agency or instrumentality of any symbol or emblem of an agency or instrumentality of such State or a political subdivision of such State.''. (d) Inclusion of Reasonableness Standard.--Section 1140(a)(1) of such Act (as amended by the preceding provisions of this section) is further amended, in the matter following subparagraph (B) (as redesignated), by striking ``convey'' and inserting ``convey, or in a manner which reasonably could be interpreted or construed as conveying,''. (e) Ineffectiveness of Disclaimers.--Subsection (a) of section 1140 of such Act (as amended by the preceding provisions of this section) is further amended by adding at the end the following new paragraph: ``(3) Any determination of whether the use of one or more words, letters, symbols, or emblems (or any combination or variation thereof) in connection with an item described in paragraph (1) or the reproduction, reprinting, or distribution of an item described in paragraph (2) is a violation of this subsection shall be made without regard to any inclusion in such item (or any so reproduced, reprinted, or distributed copy thereof) of a disclaimer of affiliation with the United States Government or any particular agency or instrumentality thereof.''. (f) Violations With Respect to Individual Items.--Section 1140(b)(1) of such Act (42 U.S.C. 1320b-10(b)(1)) is amended by adding at the end the following new sentence: ``In the case of any items referred to in subsection (a)(1) consisting of pieces of mail, each such piece of mail which contains one or more words, letters, symbols, or emblems in violation of subsection (a) shall represent a separate violation. In the case of any item referred to in subsection (a)(2), the reproduction, reprinting, or distribution of such item shall be treated as a separate violation with respect to each copy thereof so reproduced, reprinted, or distributed.''. (g) Elimination of Cap on Aggregate Liability Amount.-- (1) Repeal.--Paragraph (2) of section 1140(b) of such Act (42 U.S.C. 1320b-10(b)(2)) is repealed. (2) Conforming amendments.--Section 1140(b) of such Act is further amended-- (A) by striking ``(1) Subject to paragraph (2), the'' and inserting ``The''; (B) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively; and (C) in paragraph (1) (as redesignated), by striking ``subparagraph (B)'' and inserting ``paragraph (2)''. (h) Removal of Formal Declination Requirement.--Section 1140(c)(1) of such Act (42 U.S.C. 1320b-10(c)(1)) is amended by inserting ``and the first sentence of subsection (c)'' after ``and (i)''. (i) Penalties Relating to Social Security Administration Deposited in OASI Trust Fund.--Section 1140(c)(2) of such Act (42 U.S.C. 1320b- 10(c)(2)) is amended in the second sentence by striking ``United States.'' and inserting ``United States, except that, to the extent that such amounts are recovered under this section as penalties imposed for misuse of words, letters, symbols, or emblems relating to the Social Security Administration, such amounts shall be deposited into the Federal Old-Age and Survivor's Insurance Trust Fund.''. (j) Enforcement.--Section 1140 of such Act (42 U.S.C. 1320b-10) is amended by adding at the end the following new subsection: ``(d) The preceding provisions of this section shall be enforced through the Office of Inspector General of the Department of Health and Human Services.''. (k) Annual Reports.--Section 1140 of such Act (as amended by the preceding provisions of this section) is further amended by adding at the end the following new subsection: ``(e) The Secretary shall include in the annual report submitted pursuant to section 704 a report on the operation of this section during the year covered by such annual report. Such report shall specify-- ``(1) the number of complaints of violations of this section received by the Social Security Administration during the year, ``(2) the number of cases in which a notice of violation of this section was sent by the Social Security Administration during the year requesting that an individual cease activities in violation of this section, ``(3) the number of complaints of violations of this section referred by the Social Security Administration to the Inspector General in the Department of Health and Human Services during the year, ``(4) the number of investigations of violations of this section undertaken by the Inspector General during the year, ``(5) the number of cases in which a demand letter was sent during the year assessing a civil money penalty under this section, ``(6) the total amount of civil money penalties assessed under this section during the year, ``(7) the number of requests for hearings filed during the year pursuant to subsection (c)(1) of this section and section 1128A(c)(2), ``(8) the disposition during such year of hearings filed pursuant to sections 1140(c)(1) and 1128A(c)(2), and ``(9) the total amount of civil money penalties under this section deposited into the Federal Old-Age and Survivors Insurance Trust Fund during the year.''. (l) Prohibition of Misuse of Department of the Treasury Names, Symbols, Etc.-- (1) General rule.--Subchapter II of chapter 3 of title 31, United States Code, is amended by adding at the end thereof the following new section: ``Sec. 333. Prohibition of misuse of Department of the Treasury names, symbols, etc. ``(a) General Rule.--No person may use, in connection with, or as a part of, any advertisement, solicitation, business activity, or product, whether alone or with other words, letters, symbols, or emblems-- ``(1) the words `Department of the Treasury', or the name of any service, bureau, office, or other subdivision of the Department of the Treasury, ``(2) the titles `Secretary of the Treasury' or `Treasurer of the United States' or the title of any other officer or employee of the Department of the Treasury, ``(3) the abbreviations or initials of any entity referred to in paragraph (1), ``(4) the words `United States Savings Bond' or the name of any other obligation issued by the Department of the Treasury, ``(5) any symbol or emblem of an entity referred to in paragraph (1) (including the design of any envelope or stationary used by such an entity), and ``(6) any colorable imitation of any such words, titles, abbreviations, initials, symbols, or emblems, in a manner which could reasonably be interpreted or construed as conveying the false impression that such advertisement, solicitation, business activity, or product is in any manner approved, endorsed, sponsored, or authorized by, or associated with, the Department of the Treasury or any entity referred to in paragraph (1) or any officer or employee thereof. ``(b) Treatment of Disclaimers.--Any determination of whether a person has violated the provisions of subsection (a) shall be made without regard to any use of a disclaimer of affiliation with the United States Government or any particular agency or instrumentality thereof. ``(c) Civil Penalty.-- ``(1) In general.--The Secretary of the Treasury may impose a civil penalty on any person who violates the provisions of subsection (a). ``(2) Amount of penalty.--The amount of the civil penalty imposed by paragraph (1) shall not exceed $5,000 for each use of any material in violation of subsection (a). If such use is in a broadcast or telecast, the preceding sentence shall be applied by substituting `$25,000' for `$5,000'. ``(3) Time limitations.-- ``(A) Assessments.--The Secretary of the Treasury may assess any civil penalty under paragraph (1) at any time before the end of the 3-year period beginning on the date of the violation with respect to which such penalty is imposed. ``(B) Civil action.--The Secretary of the Treasury may commence a civil action to recover any penalty imposed under this subsection at any time before the end of the 2-year period beginning on the date on which such penalty was assessed. ``(4) Coordination with subsection (d).--No penalty may be assessed under this subsection with respect to any violation after a criminal proceeding with respect to such violation has been commenced under subsection (d). ``(d) Criminal Penalty.-- ``(1) In general.--If any person knowingly violates subsection (a), such person shall, upon conviction thereof, be fined not more than $10,000 for each such use or imprisoned not more than 1 year, or both. If such use is in a broadcast or telecast, the preceding sentence shall be applied by substituting `$50,000' for `$10,000'. ``(2) Time limitations.--No person may be prosecuted, tried, or punished under paragraph (1) for any violation of subsection (a) unless the indictment is found or the information instituted during the 3-year period beginning on the date of the violation. ``(3) Coordination with subsection (c).--No criminal proceeding may be commenced under this subsection with respect to any violation if a civil penalty has previously been assessed under subsection (c) with respect to such violation.'' (2) Clerical amendment.--The analysis for chapter 3 of title 31, United States Code, is amended by adding after the item relating to section 332 the following new item: ``333. Prohibition of misuse of Department of the Treasury names, symbols, etc.''. (3) Report.--Not later than May 1, 1996, the Secretary of the Treasury shall submit a report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate on the implementation of the amendments made by this section. Such report shall include the number of cases in which the Secretary has notified persons of violations of section 333 of title 31, United States Code (as added by subsection (a)), the number of prosecutions commenced under such section, and the total amount of the penalties collected in such prosecutions. (m) Effective Date.--The amendments made by this section shall apply with respect to violations occurring after the date of the enactment of this Act. SEC. 214. INCREASED PENALTIES FOR UNAUTHORIZED DISCLOSURE OF SOCIAL SECURITY INFORMATION. (a) Unauthorized Disclosure.--Section 1106(a) of the Social Security Act (42 U.S.C. 1306(a)) is amended-- (1) by striking ``misdemeanor'' and inserting ``felony''; (2) by striking ``$1,000'' and inserting ``$10,000 for each occurrence of a violation''; and (3) by striking ``one year'' and inserting ``5 years''. (b) Unauthorized Disclosure by Fraud.--Section 1107(b) of such Act (42 U.S.C. 1307(b)) is amended-- (1) by inserting ``social security account number,'' after ``information as to the''; (2) by striking ``misdemeanor'' and inserting ``felony''; (3) by striking ``$1,000'' and inserting ``$10,000 for each occurrence of a violation''; and (4) by striking ``one year'' and inserting ``5 years''. (c) Effective Date.--The amendments made by this section shall apply to violations occurring on or after the date of the enactment of this Act. SEC. 215. INCREASE IN AUTHORIZED PERIOD FOR EXTENSION OF TIME TO FILE ANNUAL EARNINGS REPORT. (a) In General.--Section 203(h)(1)(A) of the Social Security Act (42 U.S.C. 403(h)(1)(A)) is amended in the last sentence by striking ``three months'' and inserting ``four months''. (b) Effective Date.--The amendment made by subsection (a) shall apply with respect to reports of earnings for taxable years ending on or after December 31, 1994. SEC. 216. EXTENSION OF DISABILITY INSURANCE PROGRAM DEMONSTRATION PROJECT AUTHORITY. (a) In General.--Section 505 of the Social Security Disability Amendments of 1980 (Public Law 96-265), as amended by section 12101 of the Consolidated Omnibus Budget Reconciliation Act of 1985 (Public Law 99-272), section 10103 of the Omnibus Budget Reconciliation Act of 1989 (Public Law 101-239), and section 5120 of the Omnibus Budget Reconciliation Act of 1990 (Public Law 101-508) is further amended-- (1) in paragraph (3) of subsection (a), by striking ``June 10, 1993'' and inserting ``June 10, 1996''; (2) in paragraph (4) of subsection (a), by striking ``1992'' and inserting ``1995''; and (3) in subsection (c), by striking ``October 1, 1993'' and inserting ``October 1, 1996''. (b) Effective Date.--The amendments made by this section shall take effect on the date of the enactment of this Act. SEC. 217. CROSS-MATCHING OF SOCIAL SECURITY ACCOUNT NUMBER INFORMATION AND EMPLOYER IDENTIFICATION NUMBER INFORMATION MAINTAINED BY THE DEPARTMENT OF AGRICULTURE. (a) Social Security Account Number Information.--Clause (iii) of section 205(c)(2)(C) of the Social Security Act (42 U.S.C. 405(c)(2)(C)) (as added by section 1735(a)(3) of the Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101-624; 104 Stat. 3791)) is amended-- (1) by inserting ``(I)'' after ``(iii)''; and (2) by striking ``The Secretary of Agriculture shall restrict'' and all that follows and inserting the following: ``(II) The Secretary of Agriculture may share any information contained in any list referred to in subclause (I) with any other agency or instrumentality of the United States which otherwise has access to social security account numbers in accordance with this subsection or other applicable Federal law, except that the Secretary of Agriculture may share such information only to the extent that such Secretary determines such sharing would assist in verifying and matching such information against information maintained by such other agency or instrumentality. Any such information shared pursuant to this subclause may be used by such other agency or instrumentality only for the purpose of effective administration and enforcement of the Food Stamp Act of 1977 or for the purpose of investigation of violations of other Federal laws or enforcement of such laws. ``(III) The Secretary of Agriculture, and the head of any other agency or instrumentality referred to in this subclause, shall restrict, to the satisfaction of the Secretary of Health and Human Services, access to social security account numbers obtained pursuant to this clause only to officers and employees of the United States whose duties or responsibilities require access for the purposes described in subclause (II). ``(IV) The Secretary of Agriculture, and the head of any agency or instrumentality with which information is shared pursuant to clause (II), shall provide such other safeguards as the Secretary of Health and Human Services determines to be necessary or appropriate to protect the confidentiality of the social security account numbers.''. (b) Employer Identification Number Information.--Subsection (f) of section 6109 of the Internal Revenue Code of 1986 (as added by section 1735(c) of the Food, Agriculture, Conservation, and Trade Act of 1990 (Public Law 101-624; 104 Stat. 3792)) (relating to access to employer identification numbers by Secretary of Agriculture for purposes of Food Stamp Act of 1977) is amended-- (1) by striking paragraph (2) and inserting the following: ``(2) Sharing of information and safeguards.-- ``(A) Sharing of information.--The Secretary of Agriculture may share any information contained in any list referred to in paragraph (1) with any other agency or instrumentality of the United States which otherwise has access to employer identification numbers in accordance with this section or other applicable Federal law, except that the Secretary of Agriculture may share such information only to the extent that such Secretary determines such sharing would assist in verifying and matching such information against information maintained by such other agency or instrumentality. Any such information shared pursuant to this subparagraph may be used by such other agency or instrumentality only for the purpose of effective administration and enforcement of the Food Stamp Act of 1977 or for the purpose of investigation of violations of other Federal laws or enforcement of such laws. ``(B) Safeguards.--The Secretary of Agriculture, and the head of any other agency or instrumentality referred to in subparagraph (A), shall restrict, to the satisfaction of the Secretary of the Treasury, access to employer identification numbers obtained pursuant to this subsection only to officers and employees of the United States whose duties or responsibilities require access for the purposes described in subparagraph (A). The Secretary of Agriculture, and the head of any agency or instrumentality with which information is shared pursuant to subparagraph (A), shall provide such other safeguards as the Secretary of the Treasury determines to be necessary or appropriate to protect the confidentiality of the employer identification numbers.''; (2) in paragraph (3), by striking ``by the Secretary of Agriculture pursuant to this subsection'' and inserting ``pursuant to this subsection by the Secretary of Agriculture or the head of any agency or instrumentality with which information is shared pursuant to paragraph (2)'', and by striking ``social security account numbers'' and inserting ``employer identification numbers''; and (3) in paragraph (4), by striking ``by the Secretary of Agriculture pursuant to this subsection'' and inserting ``pursuant to this subsection by the Secretary of Agriculture or any agency or instrumentality with which information is shared pursuant to paragraph (2)''. SEC. 218. CERTAIN TRANSFERS TO RAILROAD RETIREMENT ACCOUNT MADE PERMANENT. Subsection (c)(1)(A) of section 224 of the Railroad Retirement Solvency Act of 1983 (relating to section 72(r) revenue increase transferred to certain railroad accounts) is amended by striking ``with respect to benefits received before October 1, 1992''. SEC. 219. AUTHORIZATION FOR USE OF SOCIAL SECURITY ACCOUNT NUMBERS BY DEPARTMENT OF LABOR IN ADMINISTRATION OF FEDERAL WORKERS' COMPENSATION LAWS. Section 205(c)(2)(C) of the Social Security Act (42 U.S.C. 405(c)(2)(C)) is amended by adding at the end the following new clause: ``(ix) In the administration of the provisions of chapter 81 of title 5, United States Code, and the Longshore and Harbor Workers' Compensation Act (33 U.S.C. 901 et seq.), the Secretary of Labor may require by regulation that any person filing a notice of injury or a claim for benefits under such provisions provide as part of such notice or claim such person's social security account number, subject to the requirements of this clause. No officer or employee of the Department of Labor shall have access to any such number for any purpose other than the establishment of a system of records necessary for the effective administration of such provisions. The Secretary of Labor shall restrict, to the satisfaction of the Secretary of Health and Human Services, access to social security account numbers obtained pursuant to this clause to officers and employees of the United States whose duties or responsibilities require access for the administration or enforcement of such provisions. The Secretary of Labor shall provide such other safeguards as the Secretary of Health and Human Services determines to be necessary or appropriate to protect the confidentiality of the social security account numbers.''. SEC. 220. COVERAGE UNDER FICA OF FEDERAL EMPLOYEES TRANSFERRED TEMPORARILY TO INTERNATIONAL ORGANIZATIONS. (a) 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. 221. EXTEND THE FICA TAX EXEMPTION AND CERTAIN TAX RULES TO INDIVIDUALS WHO ENTER THE UNITED STATES UNDER A VISA ISSUED UNDER SECTION 101 OF THE IMMIGRATION AND NATIONALITY ACT. (a) Amendments to the Internal Revenue Code of 1986.-- (1) The following provisions of the Internal Revenue Code of 1986 are each amended by striking ``(J), or (M)'' each place it appears and inserting ``(J), (M), or (Q)'': (A) Section 871(c). (B) Section 1441(b). (C) Section 3121(b)(19). (D) Section 3231(e)(1). (E) Section 3306(c)(19). (2) Paragraph (3) of section 872(b) of such Code is amended by striking ``(F) or (J)'' and inserting ``(F), (J), or (Q)''. (3) Paragraph (5) of section 7701(b) of such Code is amended by striking ``subparagraph (J)'' in subparagraphs (C)(i) and (D)(i)(II) and inserting ``subparagraph (J) or (Q)''. (b) Amendment to Social Security Act.--Paragraph (19) of section 210(a) of the Social Security Act is amended by striking ``(J), or (M)'' each place it appears and inserting ``(J), (M), or (Q)''. (c) Effective Date.--The amendments made by this subsection shall take effect with the calendar quarter following the date of the enactment of this Act. SEC. 222. STUDY OF RISING COSTS OF DISABILITY INSURANCE BENEFITS. (a) In General.--As soon as practicable after the date of the enactment of this Act, the Secretary of Health and Human Services shall conduct a comprehensive study of the reasons for rising costs payable from the Federal Disability Insurance Trust Fund. (b) Matters to Be Included in Study.--In conducting the study under this section, the Secretary shall-- (1) determine the relative importance of the following factors in increasing the costs payable from the Trust Fund: (A) increased numbers of applications for benefits; (B) higher rates of benefit allowances; and (C) decreased rates of benefit terminations; and (2) identify, to the extent possible, underlying social, economic, demographic, programmatic, and other trends responsible for changes in disability benefit applications, allowances, and terminations. (c) Report.--Not later than December 31, 1994, the Secretary shall transmit a report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate setting forth the results of the study conducted under this section, together with any recommendations for legislative changes which the Secretary determines appropriate. SEC. 223. COMMISSION ON CHILDHOOD DISABILITY. (a) Establishment of Commission.--The Secretary of Health and Human Services (in this section referred to as the ``Secretary'') shall appoint a Commission on the Evaluation of Disability in Children (in this section referred to as the ``Commission''). (b) Appointment of Members.--(1) The Secretary shall appoint not less than 9 but not more than 15 members to the Commission, including-- (A) recognized experts in the field of medicine, whose work involves-- (i) the evaluation and treatment of disability in children, (ii) the study of congenital, genetic, or perinatal disorders in children, or (iii) the measurement of developmental milestones and developmental deficits in children; and (B) recognized experts in the fields of-- (i) psychology, (ii) education and rehabilitation, (iii) law, (iv) the administration of disability programs, (v) social insurance (including health insurance), and (vi) other fields of expertise that the Secretary determines to be appropriate. (2) Members shall be appointed by January 1, 1995, without regard to the provisions of title 5, United States Code, governing appointments to competitive service. (3) Members appointed under this subsection shall serve for a term equivalent to the duration of the Commission. (4) The Secretary shall designate a member of the Commission to serve as Chair of the Commission for a term equivalent to the duration of the Commission. (c) Administrative Provisions.--(1) Service as a member of the Commission by an individual who is not otherwise a Federal employee shall not be considered service in an appointive or elective position in the Federal Government for the purposes of title 5, United States Code. (2) Each member of the Commission who is not a full-time Federal employee shall be paid compensation at a rate equal to the daily equivalent of the rate of basic pay in effect for Level IV of the Executive Schedule for each day (including travel time) the member attends meetings or otherwise performs the duties of the Commission. (3) While away from their homes or regular places of business on the business of the Commission, each member who is not a full-time Federal employee may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by section 5703 of title 5, United States Code, for persons employed intermittently in the Government service. (d) Assistance to Commission.--The Commission may engage individuals skilled in medical and other aspects of childhood disability to provide such technical assistance as may be necessary to carry out the functions of the Commission. The Secretary shall make available to the Commission such secretarial, clerical, and other assistance as the Commission may require to carry out the functions of the Commission. (e) Study by the Commission.--(1) The Commission shall conduct a study, in consultation with the National Academy of Sciences, of the effects of the definition of ``disability'' under title XVI of the Social Security Act (42 U.S.C. 1382 et seq.) in effect on the date of enactment of this Act, as such definition applies to determining whether a child under the age of 18 is eligible to receive benefits under such title, the appropriateness of such definition, and the advantages and disadvantages of using any alternative definition of disability in determining whether a child under age 18 is eligible to receive benefits under such title. (2) The study described in paragraph (1) shall include issues of-- (A) whether the need by families for assistance in meeting high costs of medical care for children with serious physical or mental impairments, whether or not they are eligible for disability benefits under title XVI of the Social Security Act, might appropriately be met through expansion of Federal health assistance programs (including the program of medical assistance under title XIX of such Act); (B) the feasibility of providing benefits to children through noncash means, including but not limited to vouchers, debit cards, and electronic benefit transfer systems; (C) the extent to which the Social Security Administration can involve private organizations in an effort to 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) the feasibility of providing retroactive supplemental security income benefits pursuant to the decision in Sullivan v. Zebley, 110 S. Ct. 2658 (1990), on a prorated basis or by means of a packaged trust; (E) methods to increase the extent to which benefits are used in the effort to assist the child achieve independence and engage in substantial gainful activity; and (F) such other issues that the Secretary determines to be appropriate. (f) Report.--Not later than November 30, 1995, the Commission shall prepare a report and submit such report to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate which shall summarize the results of the study described in subsection (e) and include any recommendations that the Commission determines to be appropriate. SEC. 224. DISREGARD DEEMED INCOME AND RESOURCES OF INELIGIBLE SPOUSE IN DETERMINING CONTINUED ELIGIBILITY UNDER SECTION 1619(b). (a) In General.--Section 1619(b)(2) of the Social Security Act (42 U.S.C. 1382h(b)(2)) is amended by adding at the end the following: ``(C)(i)(I) For purposes of paragraph (1), in determining the earnings of an individual whose spouse is not an eligible individual, there shall be disregarded the net income of the spouse to the extent such net income does not exceed an amount equal to twice the threshold amount determined for the individual. ``(II) As used in subclause (I), the term `threshold amount' means, with respect to an individual-- ``(aa) $85, plus twice the amount of benefits payable under this title (including federally administered State supplementary payments) to an individual who is living in his or her own household and who has no other income, plus the average amount expended per individual, under the State plan approved under title XIX by the State in which the individual resides, on individuals who are recipients of benefits under this title by reason of disability; or ``(bb) if the gross earnings of the individual exceeds the amount described in item (aa), the amount that would be sufficient to allow the individual to provide for himself or herself a reasonable equivalent of benefits and services described in paragraph (1)(D). ``(ii) For purposes of paragraph (1)(A), in determining the resources of an individual whose spouse is not an eligible individual, there shall be disregarded the resources of the spouse to the extent the amount of such resources does not exceed the community spouse resource allowance (as defined in section 1924(f)(2)) of the State in which the individual resides.''. (b) Effective Date.--The amendment made by subsection (a) shall take effect on October 1, 1995. SEC. 225. PLANS FOR ACHIEVING SELF-SUPPORT NOT DISAPPROVED WITHIN 60 DAYS TO BE DEEMED APPROVED. (a) Amendments to Income Exclusion Rules.--Section 1612(b)(4) of the Social Security Act (42 U.S.C. 1382a(b)(4)(A)) is amended in each of subparagraphs (A) and (B) by inserting ``and, for purposes of this clause, a completed plan for achieving self-support which is not disapproved by the Board within 60 days after the date of submission shall be deemed to be approved by the Board until subsequently disapproved by the Board (with appropriate notification to the individual),'' after ``plan,''. (b) Amendment to Resource Exclusion Rule.--Section 1613(a)(4) of such Act (42 U.S.C. 1382b(a)(4)) is amended by inserting ``, and, for purposes of this paragraph, a completed plan for achieving self-support which is not disapproved by the Board within 60 days after the date of submission shall be deemed to be approved by the Board until 6 months after subsequently disapproved by the Board (with appropriate notification to the individual)'' after ``such plan''. (c) Effective Date.--The amendments made by this section shall take effect on January 1, 1995. SEC. 226. TEMPORARY AUTHORITY TO APPROVE A LIMITED NUMBER OF PLANS FOR ACHIEVING SELF-SUPPORT THAT INCLUDE HOUSING GOALS. (a) In General.--During the 42-month period that begins on January 1, 1995, the Board may, under title XVI of the Social Security Act, approve not more than 20 percent of the plans for achieving self- support that include a housing goal. (b) Report.--Within 12 months after the end of the 5-year period that begins on January 1, 1995, the Board shall submit to the Congress a report on the activities under subsection (a). SEC. 227. REGULATIONS REGARDING COMPLETION OF PLANS FOR ACHIEVING SELF- SUPPORT. (a) In General.--Section 1633 of the Social Security Act (42 U.S.C. 1383b) is amended by adding at the end the following: ``(d) The Board shall establish by regulation time limits and other criteria related to individuals' plans for achieving self-support, that take into account the difficulty of achieving self-support based on the needs of individuals and the goals of the plan.''. (b) Effective Date.--The amendment made by subsection (a) shall take effect on January 1, 1995. SEC. 228. TREATMENT OF CERTAIN GRANT, SCHOLARSHIP, OR FELLOWSHIP INCOME AS EARNED INCOME FOR SSI PURPOSES. (a) In General.--Section 1612(a)(1) of the Social Security Act (42 U.S.C. 1382a(a)(1)) is amended-- (1) by striking ``and'' at the end of subparagraph (D); and (2) by adding at the end the following: ``(F) any grant, scholarship, or fellowship.''. (b) Effective Date.--The amendments made by subsection (a) shall apply to eligibility and benefit determinations for any month that begins after the 2nd month after the month in which this Act is enacted. SEC. 229. SSI ELIGIBILITY FOR STUDENTS TEMPORARILY ABROAD. (a) In General.--Section 1611(f) of the Social Security Act (42 U.S.C. 1382(f)) is amended-- (1) by inserting ``(1)'' after ``(f)''; and (2) by adding after and below the end the following: ``(2) The first sentence of paragraph (1) shall not apply to any individual who-- ``(A) was eligible to receive a benefit under this title for the month immediately preceding the first month during all of which the individual was outside the United States; and ``(B) demonstrates to the satisfaction of the Board that the absence of the individual from the United States is-- ``(i) temporary; and ``(ii) for the purpose of conducting studies as part of an educational program that is designed to prepare the individual for gainful employment, and is sponsored by a school, college, or university in the United States.''. (b) Effective Date.--The amendment made by subsection (a) shall take effect on January 1, 1995. SEC. 230. DISREGARD OF COST-OF-LIVING INCREASES FOR CONTINUED ELIGIBILITY FOR WORK INCENTIVES. (a) In General.--Section 1619(b)(1)(B) of the Social Security Act (42 U.S.C. 1382h(b)(1)(B)) is amended by inserting ``and increases pursuant to section 215(i) in the level of monthly insurance benefits to which the individual is entitled under title II that occur while such individual is considered to be receiving supplemental security income benefits by reason of this subsection'' after ``earnings''. (b) Effective Date.--The amendment made by subsection (a) shall apply to eligibility determinations for months after December 1994. SEC. 231. EXPANSION OF THE AUTHORITY OF THE SOCIAL SECURITY ADMINISTRATION TO PREVENT, DETECT, AND TERMINATE FRAUDULENT CLAIMS FOR SSI BENEFITS. (a) Prevention of Fraud in the SSI Program by Translators of Foreign Languages.-- (1) In general.--Section 1631(e) of the Social Security Act (42 U.S.C. 1383(e)) is amended by inserting after paragraph (3) the following: ``(4) A translation into English by a third party of a statement made in a foreign language by an applicant for or recipient of benefits under this title shall not be regarded as reliable unless the third party, under penalty of perjury-- ``(A) certifies that the translation is accurate; and ``(B) discloses the nature and scope of the relationship between the third party and the applicant or recipient, as the case may be.''. (2) Effective date.--The amendment made by paragraph (1) shall take effect on October 1, 1994. (b) Civil Monetary Penalties, Assessments, and Exclusions for Title XVI.-- (1) In general.--Title XI of the Social Security Act (42 U.S.C. 1301-1320b-14) is amended by inserting after section 1128B the following: ``SEC. 1129. CIVIL MONETARY PENALTIES AND ASSESSMENTS FOR TITLE XVI. ``(a) Any person (including an organization, agency, or other entity) who makes, or causes to be made, a statement or representation of a material fact for use in determining any initial or continuing right to benefits or payments under title XVI that the person knows or should know is false or misleading or knows or should know omits a material fact shall be subject to, in addition to any other penalties that may be prescribed by law, a civil money penalty of not more than $5,000 for each such statement or representation. Such person also shall be subject to an assessment, in lieu of damages sustained by the United States because of such statement or representation, of not more than twice the amount of benefits or payments paid as a result of such a statement or representation. In addition, the Board may make a determination in the same proceeding to exclude the person from participation in the programs under title XVIII and to direct the appropriate State agency to exclude the person from participation in any State health care program. ``(b)(1) The Board may initiate a proceeding to determine whether to impose a civil money penalty, assessment, or exclusion under subsection (a) only as authorized by the Attorney General pursuant to procedures agreed upon by the Board and the Attorney General. The Board may not initiate an action under this section with respect to any violation described in subsection (a) later than 6 years after the date the violation was committed. The Board may initiate an action under this section by serving notice of the action in any manner authorized by Rule 4 of the Federal Rules of Civil Procedure. ``(2) The Board shall not make a determination adverse to any person under this section until the person has been given written notice and an opportunity for the determination to be made on the record after a hearing at which the person is entitled to be represented by counsel, to present witnesses, and to cross-examine witnesses against the person. ``(3) In a proceeding under this section which-- ``(A) is against a person who has been convicted (whether upon a verdict after trial or upon a plea of guilty or nolo contendere) of a Federal crime charging fraud or false statements; and ``(B) involves the same transaction as in the criminal action; the person is estopped from denying the essential elements of the criminal offense. ``(4) The official conducting a hearing under this section may sanction a person, including any party or attorney, for failing to comply with an order or procedure, failing to defend an action, or other misconduct as would interfere with the speedy, orderly, or fair conduct of the hearing. Such sanction shall reasonably relate to the severity and nature of the failure or misconduct. Such sanction may include-- ``(A) in the case of refusal to provide or permit discovery, drawing negative factual inference or treating such refusal as an admission by deeming the matter, or certain facts, to be established; ``(B) prohibiting a party from introducing certain evidence or otherwise supporting a particular claim or defense; ``(C) striking pleadings, in whole or in part; ``(D) staying the proceedings; ``(E) dismissal of the action; ``(F) entering a default judgment; ``(G) ordering the party or attorney to pay attorneys' fees and other costs caused by the failure or misconduct; and ``(H) refusing to consider any motion or other action which is not filed in a timely manner. ``(c) In determining the amount or scope of any penalty, assessment, or exclusion imposed pursuant to this section, the Board shall take into account-- ``(1) the nature of the statements and representations referred to in subsection (a) and the circumstances under which they occurred; ``(2) the degree of culpability, history of prior offenses, and financial condition of the person committing the offense; and ``(3) such other matters as justice may require. ``(d)(1) Any person adversely affected by a determination of the Board under this section may obtain a review of such determination in the United States Court of Appeals for the circuit in which the person resides, or in which the statement or representation referred to in subsection (a) was made, by filing in such court (within 60 days following the date the person is notified of the Board's determination) a written petition requesting that the determination be modified or set aside. A copy of the petition shall be forthwith transmitted by the clerk of the court to the Board, and thereupon the Board shall file in the court the record in the proceeding as provided in section 2112 of title 28, United States Code. Upon such filing, the court shall have jurisdiction of the proceeding and of the question determined therein, and shall have the power to make and enter upon the pleadings, testimony, and proceedings set forth in such record a decree affirming, modifying, remanding for further consideration, or setting aside, in whole or in part, the determination of the Board and enforcing the same to the extent that such order is affirmed or modified. No objection that has not been urged before the Board shall be considered by the court, unless the failure or neglect to urge such objection shall be excused because of extraordinary circumstances. ``(2) The findings of the Board with respect to questions of fact, if supported by substantial evidence on the record considered as a whole, shall be conclusive in the review described in paragraph (1). If any party shall apply to the court for leave to adduce additional evidence and shall show to the satisfaction of the court that such additional evidence is material and that there were reasonable grounds for the failure to adduce such evidence in the hearing before the Board, the court may order such additional evidence to be taken before the Board and to be made a part of the record. The Board may modify its findings as to the facts, or make new findings, by reason of additional evidence so taken and filed, and the Board shall file with the court such modified or new findings, which findings with respect to questions of fact, if supported by substantial evidence on the record considered as a whole shall be conclusive, and his recommendations, if any, for the modification or setting aside of his original order. ``(3) Upon the filing of the record with the Board's original or modified order, the jurisdiction of the court shall be exclusive and its judgment and decree shall be final, except that the same shall be subject to review by the Supreme Court of the United States, as provided in section 1254 of title 28, United States Code. ``(e)(1) Civil money penalties and assessments imposed under this section may be compromised by the Board and may be recovered-- ``(A) in a civil action in the name of the United States brought in United States district court for the district where the statement or representation referred to in subsection (a) was made, or where the person resides, as determined by the Board; ``(B) by means of reduction in tax refunds to which the person is entitled, based on notice to the Secretary of the Treasury as permitted under section 3720A of title 31, United States Code; ``(C) by decrease of any payment under title XVI to which the person is entitled, notwithstanding section 207 of this Act, as made applicable to this title by reason of section 1631(d)(1); ``(D) by authorities provided under the Debt Collection Act of 1982, as amended, to the extent applicable to debts arising under the Social Security Act; ``(E) by deduction of the amount of such penalty or assessment, when finally determined, or the amount agreed upon in compromise, from any sum then or later owing by the United States to the person against whom the penalty or assessment has been assessed; or ``(F) by any combination of the foregoing. ``(f) A determination by the Board to impose a penalty, assessment, or exclusion under this section shall be final upon the expiration of the 60-day period referred to in subsection (d). Matters that were raised or that could have been raised in a hearing before the Board or in an appeal pursuant to subsection (d) may not be raised as a defense to a civil action by the United States to collect a penalty and assessment imposed under this section. ``(g) Whenever the Board's determination to impose a penalty, assessment, or exclusion under this section with respect to a medical provider or physician becomes final, the provisions of section 1128A(h) shall apply. ``(h) Whenever the Board has reason to believe that any person has engaged, is engaging, or is about to engage in any activity which makes the person subject to a civil monetary penalty under this section, the Board may bring an action in an appropriate district court of the United States (or, if applicable, a United States court of any territory) to enjoin such activity, or to enjoin the person from concealing, removing, encumbering, or disposing of assets which may be required in order to pay a civil monetary penalty and assessment if any such penalty were to be imposed or to seek other appropriate relief. ``(i)(1) The provisions of subsections (d) and (e) of section 205 shall apply with respect to this section to the same extent as they are applicable with respect to title II. The Board may delegate the authority granted by section 205(d) (as made applicable to this section) to the Inspector General of the Department of Health and Human Services for purposes of any investigation under this section. ``(2) The Board may delegate authority granted under this section to the Inspector General of the Social Security Administration. ``(j) For purposes of this section, the term `State agency' shall have the same meaning as in section 1128A(i)(1). ``(k) A principal is liable for penalties, assessments, and exclusions under this section for the actions of the principal's agent acting within the scope of the agency.''. (2) Conforming amendments.--Section 1128 of such Act (42 U.S.C. 1320a-7) is amended-- (A) in subsection (b)(7), by striking ``or section 1128B'' and inserting ``, section 1128B, or section 1129''; (B) in subsection (b)(8)(B)(ii), by inserting ``and section 1129'' after ``section 1128A''; (C) in subsection (c)(1), by striking ``or under section 1128A'' and inserting ``, section 1128A, or section 1129''; (D) in subsection (c)(3)(A), by inserting ``or section 1129'' after ``section 1128A''; (E) in subsection (d)(1), by striking ``and section 1128A'' and inserting ``, section 1128A, and section 1129''; (F) in subsection (d)(2)(A), by striking ``or section 1128A'' and inserting ``, section 1128A, or section 1129''; (G) in subsection (e)(1), by striking ``or section 1128A'' and inserting ``, section 1128A, or section 1129''; (H) in subsection (f)(3), by inserting ``, 1129,'' after ``sections 1128A''; (I) in subsection (g)(1), by striking ``or section 1128A'' each place such term appears and inserting ``, section 1128A, or section 1129''; (J) in subsection (g)(2)(A), by inserting ``and section 1129(a)'' after ``section 1128A(a)''; and (K) in subsection (h), by striking ``1128A and 1128B'' and inserting ``1128A, 1128B, and 1129''. (c) SSI Fraud Considered a Felony.-- (1) In general.--Section 1632(a) of the Social Security Act (42 U.S.C. 1383a(a)) is amended by striking ``shall'' the 1st place such term appears and all that follows and inserting ``shall be fined under title 18, United States Code, imprisoned not more than 5 years, or both.''. (2) Conforming amendment.--Section 1632(b) of such Act (42 U.S.C. 1383a(b)) is amended to read as follows: ``(b)(1) If a person or entity violates subsection (a) in the person's or entity's role as, or in applying to become, a payee under section 1631(a)(2) on behalf of another individual (other than the person's eligible spouse), and the violation includes a willful misuse of funds by the person or entity, the court may also require that full or partial restitution of funds be made to such other individual. ``(2) Any person or entity convicted of a violation of subsection (a) of this section or of section 208 may not be certified as a payee under section 1631(a)(2).''. (d) Authority to Redetermine Eligibility in Disability Cases if Fraud is Involved, and to Terminate Benefits if There is Insufficient Reliable Evidence of Disability.-- (1) In general.--Section 1631(e) of the Social Security Act (42 U.S.C. 1383(e)) is amended by adding at the end the following: ``(6)(A) The Board shall immediately redetermine the eligibility of an individual for benefits under this title by reason of disability, disregarding any unreliable evidence of disability, if there is reason to believe that fraud was involved in the application of the individual for such benefits, unless a United States attorney, or equivalent State prosecutor, with jurisdiction over potential or actual related criminal cases, certifies, in writing, that there is a substantial risk that redetermining such eligibility would jeopardize the criminal prosecution of any person who is a subject of the investigation from which the information is derived. ``(B) If, after redetermining the eligibility of an individual for benefits under this title by reason of disability, the Board determines that there is insufficient reliable evidence of disability, the Board may terminate such eligibility.''. (2) Effective date.--The amendment made by paragraph (1) shall take effect on October 1, 1994, and shall apply to eligibility determinations made before, on, or after such date. (e) Availability of Recipient Identifying Information From the Inspector General, Social Security Administration.-- (1) In general.--Section 1631(e) of the Social Security Act (42 U.S.C. 1383(e)), as amended by subsection (d) of this section, is amended by adding at the end the following: ``(7) As soon as the Inspector General, Social Security Administration, has reason to believe that fraud was involved in the application of a recipient for benefits under this title, the Inspector General shall make available to the Board information identifying the recipient, unless a United States attorney, or equivalent State prosecutor, with jurisdiction over potential or actual related criminal cases, certifies, in writing, that there is a substantial risk that making the information so available or redetermining the eligibility of the recipient for such benefits would jeopardize the criminal prosecution of any person who is a subject of the investigation from which the information is derived.''. (2) Effective date.--The amendment made by paragraph (1) shall take effect on October 1, 1994. (f) Authority to Use Available Preadmission Immigrant and Refugee Medical Information.-- (1) In general.--Section 1631(e) of the Social Security Act (42 U.S.C. 1383(e)), as amended by the preceding provisions of this Act, is amended by adding at the end the following: ``(8) The Board shall request the Immigration and Naturalization Service and the Centers for Disease Control to provide the Board with whatever medical information either such entity has with respect to any alien who has applied for benefits under this title to the extent that the information is relevant to any determination relating to such eligibility.''. (2) Effective date.--The amendment made by paragraph (1) shall take effect on October 1, 1994. (g) Annual Reports on Reviews of SSI Cases.--The Board shall annually submit to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report on the extent to which the Board has exercised its authority to review supplemental security income cases under title XVI of the Social Security Act, and the extent to which the cases reviewed were those that involved a high likelihood or probability of fraud. SEC. 232. DISABILITY REVIEW REQUIRED FOR SSI RECIPIENTS WHO ARE 18 YEARS OF AGE. (a) In General.--Section 1614(a)(3)(G) of the Social Security Act (42 U.S.C. 1382c(a)(3)(G)) is amended-- (1) by inserting ``(i)'' after ``(G)''; and (2) by adding after and below the end the following: ``(ii)(I) During the 1-year period that begins on the date a recipient of benefits under this title by reason of disability attains 18 years of age, the applicable State agency or the Board (as may be appropriate) shall redetermine the eligibility of the recipient for such benefits by reason of disability, by applying the criteria used in determining eligibility for such benefits of applicants who have attained 18 years of age. ``(II) A review under subclause (I) of this clause shall be considered a substitute for a review required under clause (i).''. (b) Effective Date.--The amendments made by subsection (a) shall apply to individuals who attain 18 years of age in or after the 9th month after the month in which this Act is enacted. SEC. 233. CONTINUING DISABILITY REVIEWS. (a) In General.--Section 1614(a)(3)(G) of such Act (42 U.S.C. 1382c(a)(3)(G)) is amended by inserting ``221(i),'' after ``221(h),''. (b) Effective Date.--The amendment made by subsection (A) shall take effect on October 1, 1995. SEC. 234. TECHNICAL AND CLERICAL AMENDMENTS. (a) Amendments to Title II of the Social Security Act.-- (1) Section 201(a) of the Social Security Act (42 U.S.C. 401(a)) is amended, in the matter following clause (4), by striking ``and and'' and inserting ``and''. (2) Section 202(d)(8)(D)(ii) of such Act (42 U.S.C. 402(d)(8)(D)(ii)) is amended by adding a period at the end and by adjusting the left hand margination thereof so as to align with section 202(d)(8)(D)(i) of such Act. (3) Section 202(q)(1)(A) of such Act (42 U.S.C. 402(q)(1)(A)) is amended by striking the dash at the end. (4) Section 202(q)(9) of such Act (42 U.S.C. 402(q)(9)) is amended, in the matter preceding subparagraph (A), by striking ``parargaph'' and inserting ``paragraph''. (5) Section 202(t)(4)(D) of such Act (42 U.S.C. 402(t)(4)(D)) is amended by inserting ``if the'' before ``Secretary'' the second and third places it appears. (6) Clauses (i) and (ii) of section 203(f)(5)(C) of such Act (42 U.S.C. 403(f)(5)(C)) are amended by adjusting the left- hand margination thereof so as to align with clauses (i) and (ii) of section 203(f)(5)(B) of such Act. (7) Paragraph (3)(A) and paragraph (3)(B) of section 205(b) of such Act (42 U.S.C. 405(b)) are amended by adjusting the left-hand margination thereof so as to align with the matter following section 205(b)(2)(C) of such Act. (8) Section 205(c)(2)(B)(iii) of such Act (42 U.S.C. 405(c)(2)(B)(iii)) is amended by striking ``non-public'' and inserting ``nonpublic''. (9) Section 205(c)(2)(C) of such Act (42 U.S.C. 405(c)(2)(C)) is amended-- (A) by striking the clause (vii) added by section 2201(c) of Public Law 101-624; (B) by redesignating the clause (iii) added by section 2201(b)(3) of Public Law 101-624, clause (iv), clause (v), clause (vi), and the clause (vii) added by section 1735(b) of Public Law 101-624 as clause (iv), clause (v), clause (vi), clause (vii), and clause (viii), respectively; (C) in clause (v) (as redesignated), by striking ``subclause (I) of'', and by striking ``subclause (II) of clause (i)'' and inserting ``clause (ii)''; and (D) in clause (viii)(IV) (as redesignated), by inserting ``a social security account number or'' before ``a request for''. (10) The heading for section 205(j) of such Act (42 U.S.C. 405(j)) is amended to read as follows: ``Representative Payees''. (11) The heading for section 205(s) of such Act (42 U.S.C. 405(s)) is amended to read as follows: ``Notice Requirements''. (12) Section 208(c) of such Act (42 U.S.C. 408(c)) is amended by striking ``subsection (g)'' and inserting ``subsection (a)(7)''. (13) Section 210(a)(5)(B)(i)(V) of such Act (42 U.S.C. 410(a)(5)(B)(i)(V)) is amended by striking ``section 105(e)(2)'' and inserting ``section 104(e)(2)''. (14) Section 211(a) of such Act (42 U.S.C. 411(a)) is amended-- (A) in paragraph (13), by striking ``and'' at the end; and (B) in paragraph (14), by striking the period and inserting ``; and''. (15) Section 213(c) of such Act (42 U.S.C. 413(c)) is amended by striking ``section'' the first place it appears and inserting ``sections''. (16) Section 215(a)(5)(B)(i) of such Act (42 U.S.C. 415(a)(5)(B)(i)) is amended by striking ``subsection'' the second place it appears and inserting ``subsections''. (17) Section 215(f)(7) of such Act (42 U.S.C. 415(f)(7)) is amended by inserting a period after ``1990''. (18) Subparagraph (F) of section 218(c)(6) of such Act (42 U.S.C. 418(c)(6)) is amended by adjusting the left-hand margination thereof so as to align with section 218(c)(6)(E) of such Act. (19) Section 223(i) of such Act (42 U.S.C. 423(i)) is amended by adding at the beginning the following heading: ``Limitation on Payments to Prisoners''. (b) Related Amendments.-- (1) Section 603(b)(5)(A) of Public Law 101-649 (amending section 202(n)(1) of the Social Security Act) (104 Stat. 5085) is amended by inserting ``under'' before ``paragraph (1),'' and by striking ``(17), or (18)'' and inserting ``(17), (18), or (19)'', effective as if this paragraph were included in such section 603(b)(5)(A). (2) Section 10208(b)(1) of Public Law 101-239 (amending section 230(b)(2)(A) of the Social Security Act) (103 Stat. 2477) is amended by striking ``230(b)(2)(A)'' and ``430(b)(2)(A)'' and inserting ``230(b)(2)'' and ``430(b)(2)'', respectively, effective as if this paragraph were included in such section 10208(b)(1). (c) Conforming, Clerical Amendments Updating, Without Substantive Change, References in Title II of the Social Security Act to the Internal Revenue Code.-- (1)(A)(i) Section 201(g)(1) of such Act (42 U.S.C. 401(g)(1)) is amended-- (I) in subparagraph (A)(i), by striking ``and subchapter E'' and all that follows through ``1954'' and inserting ``and chapters 2 and 21 of the Internal Revenue Code of 1986''; (II) in subparagraph (A)(ii), by striking ``1954'' and inserting ``1986''; (III) in the matter in subparagraph (A) following clause (ii), by striking ``subchapter E'' and all that follows through ``1954.'' and inserting ``chapters 2 and 21 of the Internal Revenue Code of 1986.'', and by striking ``1954 other'' and inserting ``1986 other''; and (IV) in subparagraph (B), by striking ``1954'' each place it appears and inserting ``1986''. (ii) The amendments made by clause (i) shall apply only with respect to periods beginning on or after the date of the enactment of this Act. (B)(i) Section 201(g)(2) of such Act (42 U.S.C. 401(g)(2)) is amended by striking ``section 3101(a)'' and all that follows through ``1950.'' and inserting ``section 3101(a) of the Internal Revenue Code of 1986 which are subject to refund under section 6413(c) of such Code with respect to wages (as defined in section 3121 of such Code).'', and by striking ``wages reported'' and all that follows through ``1954,'' and inserting ``wages reported to the Secretary of the Treasury or his delegate pursuant to subtitle F of such Code,''. (ii) The amendments made by clause (i) shall apply only with respect to wages paid on or after January 1, 1995. (C) Section 201(g)(4) of such Act (42 U.S.C. 401(g)(4)) is amended-- (i) by striking ``The Board of Trustees shall prescribe before January 1, 1981, the method'' and inserting ``If at any time or times the Boards of Trustees of such Trust Funds deem such action advisable, they may modify the method prescribed by such Boards''; (ii) by striking ``1954'' and inserting ``1986''; and (iii) by striking the last sentence. (2) Section 202(v) of such Act (42 U.S.C. 402(v)) is amended-- (A) in paragraph (1), by striking ``1954'' and inserting ``1986''; and (B) in paragraph (3)(A), by inserting ``of the Internal Revenue Code of 1986'' after ``3127''. (3) Section 205(c)(5)(F)(i) of such Act (42 U.S.C. 405(c)(5)(F)(i)) is amended by inserting ``or the Internal Revenue Code of 1986'' after ``1954''. (4)(A) Section 209(a)(4)(A) of such Act (42 U.S.C. 409(a)(4)(A)) is amended by inserting ``or the Internal Revenue Code of 1986'' after ``Internal Revenue Code of 1954''. (B) Section 209(a) of such Act (42 U.S.C. 409(a)) is amended-- (i) in subparagraphs (C) and (E) of paragraph (4), (ii) in paragraph (5)(A), (iii) in subparagraphs (A) and (B) of paragraph (14), (iv) in paragraph (15), (v) in paragraph (16), and (vi) in paragraph (17), by striking ``1954'' each place it appears and inserting ``1986''. (C) Subsections (b), (f), (g), (i)(1), and (j) of section 209 of such Act (42 U.S.C. 409) are amended by striking ``1954'' each place it appears and inserting ``1986''. (5) Section 211(a)(15) of such Act (42 U.S.C. 411(a)(15)) is amended by inserting ``of the Internal Revenue Code of 1986'' after ``section 162(m)''. (6) Title II of such Act is further amended-- (A) in subsections (f)(5)(B)(ii) and (k) of section 203 (42 U.S.C. 403), (B) in section 205(c)(1)(D)(i) (42 U.S.C. 405(c)(1)(D)(i)), (C) in the matter in section 210(a) (42 U.S.C. 410(a)) preceding paragraph (1) and in paragraphs (8), (9), and (10) of section 210(a), (D) in subsections (p)(4) and (q) of section 210 (42 U.S.C. 410), (E) in the matter in section 211(a) (42 U.S.C. 411(a)) preceding paragraph (1) and in paragraphs (3), (4), (6), (10), (11), and (12) and clauses (iii) and (iv) of section 211(a), (F) in the matter in section 211(c) (42 U.S.C. 411(c)) preceding paragraph (1), in paragraphs (3) and (6) of section 211(c), and in the matter following paragraph (6) of section 211(c), (G) in subsections (d), (e), and (h)(1)(B) of section 211 (42 U.S.C. 411), (H) in section 216(j) (42 U.S.C. 416(j)), (I) in section 218(e)(3) (42 U.S.C. 418(e)(3)), (J) in section 229(b) (42 U.S.C. 429(b)), (K) in section 230(c) (42 U.S.C. 430(c)), and (L) in section 232 (42 U.S.C. 432), by striking ``1954'' each place it appears and inserting ``1986''. (d) Rules of Construction.-- (1) The preceding provisions of this section shall be construed only as technical and clerical corrections and as reflecting the original intent of the provisions amended thereby. (2) Any reference in title II of the Social Security Act to the Internal Revenue Code of 1986 shall be construed to include a reference to the Internal Revenue Code of 1954 to the extent necessary to carry out the provisions of paragraph (1). (e) Utilization of National Average Wage Index for Wage-Based Adjustments.-- (1) Definition of national average wage index.--Section 209(k) of the Social Security Act (42 U.S.C. 409(k)) is amended-- (A) by redesignating paragraph (2) as paragraph (3); (B) in paragraph (3) (as redesignated), by striking ``paragraph (1)'' and inserting ``this subsection''; and (C) by striking paragraph (1) and inserting the following new paragraphs: ``(k)(1) For purposes of sections 203(f)(8)(B)(ii), 213(d)(2)(B), 215(a)(1)(B)(ii), 215(a)(1)(C)(ii), 215(a)(1)(D), 215(b)(3)(A)(ii), 215(i)(1)(E), 215(i)(2)(C)(ii), 224(f)(2)(B), and 230(b)(2) (and 230(b)(2) as in effect immediately prior to the enactment of the Social Security Amendments of 1977), the term `national average wage index' for any particular calendar year means, subject to regulations of the Secretary under paragraph (2), the average of the total wages for such particular calendar year. ``(2) The Secretary shall prescribe regulations under which the national average wage index for any calendar year shall be computed-- ``(A) on the basis of amounts reported to the Secretary of the Treasury or his delegate for such year, ``(B) by disregarding the limitation on wages specified in subsection (a)(1), ``(C) with respect to calendar years after 1990, by incorporating deferred compensation amounts and factoring in for such years the rate of change from year to year in such amounts, in a manner consistent with the requirements of section 10208 of the Omnibus Budget Reconciliation Act of 1989, and ``(D) with respect to calendar years before 1978, in a manner consistent with the manner in which the average of the total wages for each of such calendar years was determined as provided by applicable law as in effect for such years.''. (2) Conforming amendments.-- (A) Section 213(d)(2)(B) of such Act (42 U.S.C. 413(d)(2)(B)) is amended by striking ``deemed average total wages'' and inserting ``national average wage index'', and by striking ``the average of the total wages'' and all that follows and inserting ``the national average wage index (as so defined) for 1976,''. (B) Section 215(a)(1)(B)(ii) of such Act (42 U.S.C. 415(a)(1)(B)(ii)) is amended-- (i) in subclause (I), by striking ``deemed average total wages'' and inserting ``national average wage index''; and (ii) in subclause (II), by striking ``the average of the total wages'' and all that follows and inserting ``the national average wage index (as so defined) for 1977.''. (C) Section 215(a)(1)(C)(ii) of such Act (42 U.S.C. 415(a)(1)(C)(ii)) is amended by striking ``deemed average total wages'' and inserting ``national average wage index''. (D) Section 215(a)(1)(D) of such Act (42 U.S.C. 415(a)(1)(D)) is amended-- (i) by striking ``after 1978''; (ii) by striking ``and the average of the total wages (as described in subparagraph (B)(ii)(I))'' and inserting ``and the national average wage index (as defined in section 209(k)(1))''; and (iii) by striking the last sentence. (E) Section 215(b)(3)(A)(ii) of such Act (42 U.S.C. 415(b)(3)(A)(ii)) is amended by striking ``deemed average total wages'' each place it appears and inserting ``national average wage index''. (F) Section 215(i)(1) of such Act (42 U.S.C. 415(i)(1)) is amended-- (i) in subparagraph (E), by striking ``SSA average wage index'' and inserting ``national average wage index (as defined in section 209(k)(1))''; and (ii) by striking subparagraph (G) and redesignating subparagraph (H) as subparagraph (G). (G) Section 215(i)(2)(C)(ii) of such Act (42 U.S.C. 415(i)(1)(C)(ii)) is amended to read as follows: ``(ii) The Secretary shall determine and promulgate the OASDI fund ratio for the current calendar year on or before November 1 of the current calendar year, based upon the most recent data then available. The Secretary shall include a statement of the fund ratio and the national average wage index (as defined in section 209(k)(1)) and a statement of the effect such ratio and the level of such index may have upon benefit increases under this subsection in any notification made under clause (i) and any determination published under subparagraph (D).''. (H) Section 224(f)(2) of such Act (42 U.S.C. 424a(f)(2)) is amended-- (i) in subparagraph (A), by adding ``and'' at the end; (ii) by striking subparagraph (C); and (iii) by striking subparagraph (B) and inserting the following: ``(B) the ratio of (i) the national average wage index (as defined in section 209(k)(1)) for the calendar year before the year in which such redetermination is made to (ii) the national average wage index (as so defined) for the calendar year before the year in which the reduction was first computed (but not counting any reduction made in benefits for a previous period of disability).''. (f) Technical Corrections Related to OASDI in the Omnibus Budget Reconciliation Act of 1990.-- (1) Amendments related to provisions in section 5103(b) relating to disabled widows.--Section 223(f)(2) of the Social Security Act (42 U.S.C. 423(f)(2)) is amended-- (A) in subparagraph (A), by striking ``(in a case to which clause (ii)(II) does not apply)''; and (B) by striking subparagraph (B)(ii) and inserting the following: ``(ii) the individual is now able to engage in substantial gainful activity; or''. (2) Amendments related to provisions in section 5105(d) relating to representative payees.-- (A) Title ii amendments.--Section 5105(d)(1)(A) of the Omnibus Budget Reconciliation Act of 1990 (Public Law 101-508) is amended-- (i) by striking ``Section 205(j)(5)'' and inserting ``Section 205(j)(6)''; and (ii) by redesignating the paragraph (5) as amended thereby as paragraph (6). (B) Title xvi amendments.--Section 1631(a)(2) of the Social Security Act (42 U.S.C. 1383(a)(2)) is amended-- (i) by redesignating subparagraphs (E) and (F) as subparagraphs (F) and (G), respectively; and (ii) by inserting after subparagraph (D) the following: ``(E) Restitution.--In cases where the negligent failure of the Secretary to investigate or monitor a representative payee results in misuse of benefits by the representative payee, the Secretary shall make payment to the beneficiary or the beneficiary's representative payee of an amount equal to such misused benefits. The Secretary shall make a good faith effort to obtain restitution from the terminated representative payee.''. (3) Amendments related to provisions in section 5106 relating to coordination of rules under titles ii and xvi governing fees for representatives of claimants with entitlements under both titles.-- (A) Calculation of fee of claimant's representative based on amount of past-due supplemental security income benefits after application of windfall offset provision.--Section 1631(d)(2)(A)(i) of the Social Security Act (as amended by section 5106(a)(2) of the Omnibus Budget Reconciliation Act of 1990) (42 U.S.C. 1383(d)(2)(A)(i)) is amended to read as follows: ``(i) by substituting, in subparagraphs (A)(ii)(I) and (C)(i), the phrase `(as determined before any applicable reduction under section 1631(g), and reduced by the amount of any reduction in benefits under this title or title II made pursuant to section 1127(a))' for the parenthetical phrase contained therein; and''. (B) Calculation of past-due benefits for purposes of determining attorney fees in judicial proceedings.-- (i) In general.--Section 206(b)(1) of such Act (42 U.S.C. 406(b)(1)) is amended-- (I) by inserting ``(A)'' after ``(b)(1)''; and (II) by adding at the end the following new subparagraph: ``(B) For purposes of this paragraph-- ``(i) the term `past-due benefits' excludes any benefits with respect to which payment has been continued pursuant to subsection (g) or (h) of section 223, and ``(ii) amounts of past-due benefits shall be taken into account to the extent provided under the rules applicable in cases before the Secretary.''. (ii) Protection from offsetting ssi benefits.--The last sentence of section 1127(a) of such Act (as added by section 5106(b) of the Omnibus Budget Reconciliation Act of 1990) (42 U.S.C. 1320a-6(a)) is amended by striking ``section 206(a)(4)'' and inserting ``subsection (a)(4) or (b) of section 206''. (4) Application of single dollar amount ceiling to concurrent claims under titles ii and xvi.-- (A) In general.--Section 206(a)(2) of such Act (as amended by section 5106(a)(1) of the Omnibus Budget Reconciliation Act of 1990) (42 U.S.C. 406(a)(2)) is amended-- (i) by redesignating subparagraph (C) as subparagraph (D); and (ii) by inserting after subparagraph (B) the following new subparagraph: ``(C) In any case involving-- ``(i) an agreement described in subparagraph (A) with any person relating to both a claim of entitlement to past-due benefits under this title and a claim of entitlement to past- due benefits under title XVI, and ``(ii) a favorable determination made by the Secretary with respect to both such claims, the Secretary may approve such agreement only if the total fee or fees specified in such agreement does not exceed, in the aggregate, the dollar amount in effect under subparagraph (A)(ii)(II).''. (B) Conforming amendment.--Section 206(a)(3)(A) of such Act (as amended by section 5106(a)(1) of the Omnibus Budget Reconciliation Act of 1990) (42 U.S.C. 406(a)(3)(A)) is amended by striking ``paragraph (2)(C)'' and inserting ``paragraph (2)(D)''. (5) Effective date.--Each amendment made by this section shall take effect as if included in the provisions of the Omnibus Budget Reconciliation Act of 1990 to which such amendment relates. (g) Elimination of Rounding Distortion in the Calculation of the Old-Age, Survivors, and Disability Insurance Contribution and Benefit Base and the Earnings Test Exempt Amounts.-- (1) Adjustment of oasdi contribution and benefit base.-- (A) In general.--Section 230(b) of the Social Security Act (42 U.S.C. 430(b)) is amended by striking paragraphs (1) and (2) and inserting the following: ``(1) $60,600, and ``(2) the ratio of (A) the national average wage index (as defined in section 209(k)(1)) for the calendar year before the calendar year in which the determination under subsection (a) is made to (B) the national average wage index (as so defined) for 1992,''. (B) Conforming amendment relating to applicable prior law.--Section 230(d) of such Act (42 U.S.C. 430(d)) is amended by striking ``(except that'' and all that follows through the end and inserting ``(except that, for purposes of subsection (b) of such section 230 as so in effect, the reference to the contribution and benefit base in paragraph (1) of such subsection (b) shall be deemed a reference to an amount equal to $45,000, each reference in paragraph (2) of such subsection (b) to the average of the wages of all employees as reported to the Secretary of the Treasury shall be deemed a reference to the national average wage index (as defined in section 209(k)(1)), the reference to a preceding calendar year in paragraph (2)(A) of such subsection (b) shall be deemed a reference to the calendar year before the calendar year in which the determination under subsection (a) of such section 230 is made, and the reference to a calendar year in paragraph (2)(B) of such subsection (b) shall be deemed a reference to 1992).''. (C) Adjustment of contribution and benefit base applicable in determining years of coverage for purposes of special minimum primary insurance amount.-- Section 215(a)(1)(C)(ii) of such Act is amended by striking ``(except that'' and all that follows through the end and inserting ``(except that, for purposes of subsection (b) of such section 230 as so in effect, the reference to the contribution and benefit base in paragraph (1) of such subsection (b) shall be deemed a reference to an amount equal to $45,000, each reference in paragraph (2) of such subsection (b) to the average of the wages of all employees as reported to the Secretary of the Treasury shall be deemed a reference to the national average wage index (as defined in section 209(k)(1)), the reference to a preceding calendar year in paragraph (2)(A) of such subsection (b) shall be deemed a reference to the calendar year before the calendar year in which the determination under subsection (a) of such section 230 is made, and the reference to a calendar year in paragraph (2)(B) of such subsection (b) shall be deemed a reference to 1992).''. (2) Adjustment of earnings test exempt amount.--Section 203(f)(8)(B)(ii) of the Social Security Act (42 U.S.C. 403(f)(8)(B)(ii)) is amended to read as follows: ``(ii) the product of the corresponding exempt amount which is in effect with respect to months in the taxable year ending after 1993 and before 1995, and the ratio of-- ``(I) the national average wage index (as defined in section 209(k)(1)) for the calendar year before the calendar year in which the determination under subparagraph (A) is made, to ``(II) the national average wage index (as so defined) for 1992, with such product, if not a multiple of $10, being rounded to the next higher multiple of $10 where such product is a multiple of $5 but not of $10 and to the nearest multiple of $10 in any other case.''. (3) Effective dates.-- (A) The amendments made by subsection (a) shall be effective with respect to the determination of the contribution and benefit base for years after 1994. (B) The amendment made by subsection (b) shall be effective with respect to the determination of the exempt amounts applicable to any taxable year ending after 1994. Passed the House of Representatives May 17, 1994. Attest: Clerk. HR 4277 EH----2 HR 4277 EH----3 HR 4277 EH----4 HR 4277 EH----5 HR 4277 EH----6 HR 4277 EH----7 HR 4277 EH----8 HR 4277 EH----9 HR 4277 EH----10 HR 4277 EH----11