[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1560 Engrossed in Senate (ES)]
103d CONGRESS
2d Session
S. 1560
_______________________________________________________________________
AN ACT
To establish the Social Security Administration as an independent
agency, and for other purposes.
103d CONGRESS
2d Session
S. 1560
_______________________________________________________________________
AN ACT
To establish the Social Security Administration as an independent
agency, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; AMENDMENT OF SOCIAL SECURITY ACT; TABLE OF
CONTENTS.
(a) Short Title.--This Act may be cited as the ``Social Security
Administration Independence Act of 1994''.
(b) Amendment of Social Security Act.--Except as otherwise
expressly provided, whenever in this Act an amendment is expressed in
terms of an amendment to or repeal of, a section or other provision,
the reference shall be considered to be made to that section or other
provision of the Social Security Act.
(c) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; amendment of Social Security Act; table of
contents.
TITLE I--ESTABLISHMENT OF NEW INDEPENDENT AGENCY
Sec. 101. Establishment of Social Security Administration as a
separate, independent agency.
Sec. 102. Commissioner and Deputy Commissioner of Social Security.
Sec. 103. Social Security Advisory Board.
Sec. 104. Personnel; budgetary matters; seal of office.
Sec. 105. Transfers to the new Social Security Administration.
Sec. 106. Transitional rules.
Sec. 107. Effective dates.
TITLE II--CONFORMING AMENDMENTS
Sec. 201. Amendments to titles II and XVI of the Social Security Act.
Sec. 202. Other amendments.
Sec. 203. Rules of construction.
Sec. 204. Effective dates.
TITLE III--SOCIAL SECURITY DISABILITY AND REHABILITATION
Sec. 301. Short title.
Sec. 302. Reform of monthly insurance benefits based on disability
involving substance abuse.
Sec. 303. Priority of treatment.
Sec. 304. Establishment of referral monitoring agencies required in all
States.
Sec. 305. Proceeds from certain criminal activities constitute
substantial gainful employment.
Sec. 306. Consistent penalty provisions for SSDI and SSI programs.
TITLE I--ESTABLISHMENT OF NEW INDEPENDENT AGENCY
SEC. 101. ESTABLISHMENT OF SOCIAL SECURITY ADMINISTRATION AS A
SEPARATE, INDEPENDENT AGENCY.
Section 701 (42 U.S.C. 901) is amended to read as follows:
``social security administration
``Sec. 701. There is hereby established, as an independent agency
in the executive branch of the Government, a Social Security
Administration (hereafter in this title referred to as the
`Administration'). It shall be the duty of the Administration to
administer the old-age, survivors, and disability insurance program
under title II and the supplemental security income program under title
XVI.''.
SEC. 102. COMMISSIONER AND DEPUTY COMMISSIONER OF SOCIAL SECURITY.
Section 702 (42 U.S.C. 902) is amended to read as follows:
``commissioner and deputy commissioner
``Commissioner of Social Security
``Sec. 702. (a)(1) There shall be in the Administration a
Commissioner of Social Security (hereafter in this title referred to as
the `Commissioner') who shall be appointed by the President, with the
advice and consent of the Senate.
``(2) The Commissioner shall be compensated at the rate provided
for level I of the Executive Schedule.
``(3) The Commissioner shall be appointed for a term of 4 years
coincident with the term of the President, or until the appointment of
a qualified successor.
``(4) The Commissioner shall be responsible for the exercise of all
powers and the discharge of all duties of the Administration, and shall
have authority and control over all personnel and activities thereof.
``(5) The Commissioner may prescribe such rules and regulations as
the Commissioner determines necessary or appropriate to carry out the
functions of the Administration. The regulations prescribed by the
Commissioner shall be subject to the rulemaking procedures established
under section 553 of title 5, United States Code.
``(6) The Commissioner may establish, alter, consolidate, or
discontinue such organizational units or components within the
Administration as the Commissioner considers necessary or appropriate,
except that this paragraph shall not apply with respect to any unit,
component, or provision provided for by this Act.
``(7) The Commissioner may assign duties, and delegate, or
authorize successive redelegations of, authority to act and to render
decisions, to such officers and employees of the Administration as the
Commissioner may find necessary. Within the limitations of such
delegations, redelegations, or assignments, all official acts and
decisions of such officers and employees shall have the same force and
effect as though performed or rendered by the Commissioner.
``(8) The Commissioner and the Secretary of Health and Human
Services (hereafter in this title referred to as the `Secretary') shall
consult, on an ongoing basis, to ensure--
``(A) the coordination of the programs administered by the
Commissioner, as described in section 701, with the programs
administered by the Secretary under titles XVIII and XIX of
this Act; and
``(B) that adequate information concerning benefits under
such titles XVIII and XIX shall be available to the public.
``Deputy Commissioner of Social Security
``(b)(1) There shall be in the Administration a Deputy Commissioner
of Social Security (hereafter in this title referred to as the `Deputy
Commissioner') who shall be appointed by the President, with the advice
and consent of the Senate.
``(2) The Deputy Commissioner shall be appointed for a term of 4
years coincident with the term of the Commissioner, or until the
appointment of a qualified successor.
``(3) The Deputy Commissioner shall be compensated at the rate
provided for level II of the Executive Schedule.
``(4) The Deputy Commissioner shall perform such duties and
exercise such powers as the Commissioner shall from time to time assign
or delegate. The Deputy Commissioner shall be Acting Commissioner of
the Administration during the absence or disability of the Commissioner
and, unless the President designates another officer of the Government
as Acting Commissioner, in the event of a vacancy in the office of the
Commissioner.''.
SEC. 103. SOCIAL SECURITY ADVISORY BOARD.
Section 703 (42 U.S.C. 903) is amended to read as follows:
``social security advisory board
``Establishment of Board
``Sec. 703. (a) There shall be established a Social Security
Advisory Board (hereinafter referred to as the `Board').
``Functions of the Board
``(b) The Board shall advise the Commissioner on policies related
to the old-age, survivors, and disability insurance program under title
II and the supplemental security income program under title XVI.
Specific functions of the Board shall include--
``(1) analyzing the Nation's retirement and disability
systems and making recommendations with respect to how the old-
age, survivors, and disability insurance program and the
supplemental security income program, supported by other public
and private systems, can most effectively assure economic
security;
``(2) studying and making recommendations relating to the
coordination of programs that provide health security with
programs described in paragraph (1);
``(3) making recommendations to the President and to the
Congress with respect to policies that will ensure the solvency
of the old-age, survivors, and disability insurance program,
both in the short-term and the long-term;
``(4) making recommendations to the President of candidates
to consider in selecting nominees for the position of
Commissioner and Deputy Commissioner;
``(5) reviewing and assessing the quality of service that
the Administration provides to the public;
``(6) reviewing and making recommendations with respect to
policies and regulations regarding the old-age, survivors, and
disability insurance program and the supplemental security
income program;
``(7) increasing public understanding of the social
security system;
``(8) in consultation with the Commissioner, reviewing the
development and implementation of a long-range research and
program evaluation plan for the Administration;
``(9) reviewing and assessing any major studies of social
security as may come to the attention of the Board; and
``(10) conducting such other reviews and assessments that
the Board determines to be appropriate.
``Structure and Membership of the Board
``(c) The Board shall be composed of 7 members who shall be
appointed as follows:
``(1) 3 members shall be appointed by the President, with
the advice and consent of the Senate. Not more than 2 of such
members shall be from the same political party.
``(2) 2 members (each member from a different political
party) shall be appointed by the President pro tempore of the
Senate with the advice of the Chairman and the Ranking Minority
Member of the Senate Committee on Finance.
``(3) 2 members (each member from a different political
party) shall be appointed by the Speaker of the House of
Representatives, with the advice of the Chairman and the
Ranking Minority Member of the House Committee on Ways and
Means.
``Terms of Appointment
``(d) Each member of the Board shall serve for a term of 6 years,
except that--
``(1) a member appointed to fill a vacancy occurring prior
to the expiration of the term for which a predecessor was
appointed, shall be appointed for the remainder of such term;
and
``(2) the terms of service of the members initially
appointed under this section shall expire as follows:
``(A) The terms of service of the members initially
appointed by the President shall expire as designated
by the President at the time of nomination, 1 each at
the end of--
``(i) 2 years;
``(ii) 4 years; and
``(iii) 6 years.
``(B) The terms of service of members initially
appointed by the President pro tempore of the Senate
shall expire as designated by the President pro tempore
of the Senate at the time of nomination, 1 each at the
end of--
``(i) 4 years; and
``(ii) 6 years.
``(C) The terms of service of members initially
appointed by the Speaker of the House of
Representatives shall expire as designated by the
Speaker of the House of Representatives at the time of
nomination, 1 each at the end of--
``(i) 3 years; and
``(ii) 5 years.
``Chairman
``(e) A member of the Board shall be designated by the President to
serve as Chairman for a term of 4 years, coincident with the term of
the President, or until the designation of a successor.
``Compensation
``(f) Members of the Board shall be compensated as follows:
``(1) Members shall be paid at a rate equal to 25 percent
of the rate for level III of the Executive Schedule.
``(2) For days when the Board or any authorized
subcommittee of the Board meets, members who attend meetings on
such days (including travel time) shall receive additional
compensation in an amount equal to the daily equivalent of the
rate for level III of the Executive Schedule.
``(3) While serving on business of the Board away from
their homes or regular places of business, members may be
allowed travel expenses, including per diem in lieu of
subsistence, as authorized by section 5703 of title 5, United
States Code, for persons in the Government employed
intermittently.
``(4) Service on the Board shall not be treated as Federal
service or employment for purposes of receiving any benefits
under chapters 83, 84, and 87 of title 5, United States Code.
``(5) A member of the Board may elect coverage of a health
benefits plan under chapter 89 of title 5, United States Code.
Such a member electing coverage shall have the applicable
employee contributions under section 8906 of such title
withheld from pay for service as a member of the Board. The
Administration shall pay the applicable Government
contributions under such section 8906 for such member. The
Office of Personnel Management shall promulgate regulations to
apply the provisions of chapter 89 of such title to Board
members electing coverage as provided under this paragraph.
``Meetings
``(g) The Board shall meet not less than 6 times each year to
consider a specific agenda of issues, as determined by the Chairman in
consultation with the other members of the Board.
``Federal Advisory Committee Act
``(h) The Board shall be exempt from the provisions of the Federal
Advisory Committee Act (5 U.S.C. App.).
``Personnel
``(i)(1) The Board shall, without regard to title 5, United States
Code, appoint a Staff Director who shall be paid at a rate equivalent
to a rate for the Senior Executive Service.
``(2) The Board is authorized, without regard to title 5, United
States Code, to appoint and fix the compensation of such additional
personnel as the Board determines to be necessary to carry out the
functions of the Board.
``(3) In fixing the compensation of additional personnel under
paragraph (2), the Board shall not authorize that any individual
appointed under such paragraph be compensated at a rate that is greater
than the rate of compensation of the Staff Director described in
paragraph (1).
``Authorization of Appropriation
``(j) There are authorized to be made available for expenditure,
out of the Federal Disability Insurance Trust Fund, the Federal Old Age
and Survivors Insurance Trust Fund, and the general fund in the
Treasury, such sums as the Congress may deem appropriate to carry out
the purposes of this section.''.
SEC. 104. PERSONNEL; BUDGETARY MATTERS; SEAL OF OFFICE.
Section 704 is amended to read as follows:
``administrative duties of the commissioner
``Personnel
``Sec. 704. (a)(1) The Commissioner shall appoint such additional
officers and employees as the Commissioner considers necessary to carry
out the functions of the Administration under this Act. Except as
otherwise provided in any other provision of law, such officers and
employees shall be appointed, and their compensation shall be fixed, in
accordance with title 5, United States Code.
``(2) The Commissioner may procure the services of experts and
consultants in accordance with the provisions of section 3109 of title
5, United States Code.
``(3) Notwithstanding any requirements of section 3133 of title 5,
United States Code, the Director of the Office of Personnel Management
shall authorize for the Administration a total number of Senior
Executive Service positions which is substantially greater than the
number of such positions authorized in the Social Security
Administration in the Department of Health and Human Services as of
immediately before the date of the enactment of the Social Security
Administration Independence Act of 1994 to the extent that the greater
number of such authorized positions is specified in the comprehensive
work force plan as established and revised by the Commissioner under
subsection (b)(1). The total number of such positions authorized for
the Administration shall not at any time be less than the number of
such authorized positions as of immediately before such date.
``Budgetary Matters
``(b)(1) Appropriations requests for staffing and personnel of the
Administration shall be based upon a comprehensive work force plan,
which shall be established and revised from time to time by the
Commissioner.
``(2) Appropriations for administrative expenses of the
Administration are authorized to be provided on a biennial basis.
``(3) Funds appropriated for the Administration to be available on
a contingency basis shall be apportioned upon the occurrence of the
stipulated contingency, as determined by the Commissioner and reported
to the Congress.
``Employment Restriction
``(c) The number of positions in the Administration which may be
excepted from the competitive service, on a temporary or permanent
basis, because of the confidential or policy-determining character of
such positions, may not exceed at any time the equivalent of 10 full-
time positions.
``Seal of Office
``(d) The Commissioner shall cause a seal of office to be made for
the Administration of such design as the Commissioner shall approve.
Judicial notice shall be taken of such seal.''.
SEC. 105. TRANSFERS TO THE NEW SOCIAL SECURITY ADMINISTRATION.
(a) Functions.--There are transferred to the Social Security
Administration all functions carried out by the Secretary of Health and
Human Services with respect to the programs and activities the
administration of which is vested in the Social Security Administration
by reason of this title and the amendments made thereby. The
Commissioner of Social Security shall allocate such functions in
accordance with sections 701, 702, 703, and 704 of the Social Security
Act (as amended by this title).
(b) Personnel, Assets, Etc.--(1) There are transferred from the
Department of Health and Human Services to the Social Security
Administration, for appropriate allocation by the Commissioner of
Social Security in the Social Security Administration--
(A) the personnel employed in connection with the functions
transferred by this title and the amendments made thereby; and
(B) the assets, liabilities, contracts, property, records,
and unexpended balance of appropriations, authorizations,
allocations, and other funds employed, held, or used in
connection with such functions, arising from such functions, or
available, or to be made available, in connection with such
functions.
(2) Unexpended funds transferred pursuant to this subsection shall
be used only for the purposes for which the funds were originally
authorized and appropriated.
(3) Any individual who is an employee of the Department and who was
not employed on the date of the enactment of this title, in connection
with functions transferred by this title to the Administration, but who
was so employed on the day before the date established pursuant to
section 107(a), may be transferred from the Department of Health and
Human Services to the Social Security Administration by the
Commissioner under subparagraph (A) of paragraph (1), after
consultation with the Secretary of Health and Human Services, if the
Commissioner determines such transfer to be appropriate.
(4) Any individual who is an employee of the Department and who was
employed on the date of the enactment of this title, solely in
connection with functions transferred by this title to the
Administration, and who was so employed on the day before the date
established pursuant to section 107(a), shall be transferred from the
Department of Health and Human Services to the Social Security
Administration.
(c) Abolishment of Office of Commissioner in the Department of
Health and Human Services.--Effective upon the appointment of a
Commissioner of Social Security pursuant to section 702 of the Social
Security Act (as amended by this title)--
(1) the position of Commissioner of Social Security in the
Department of Health and Human Services is abolished; and
(2) section 5315 of title 5, United States Code, is amended
by striking the following:
``Commissioner of Social Security, Department of Health and
Human Services.''.
SEC. 106. TRANSITIONAL RULES.
(a) Transition Director.--(1) Within 30 days after the date of the
enactment of this Act, a transition director shall be appointed by the
President, who shall be selected on the basis of experience and
knowledge of the operation of the Government.
(2) The transition director shall conduct activities necessary to
ensure the transition of the Social Security Administration to the
status of an independent agency in the executive branch of the
Government. In conducting such activities before the appointment of the
Commissioner of Social Security, the transition director shall consult
regularly with the Director of the Office of Management and Budget.
Upon such appointment, the transition director shall conduct such
activities at the direction of the Commissioner of Social Security.
(3) The transition director shall be compensated at the rate
provided for level IV of the Executive Schedule.
(4) Expenditures to carry out the purposes of this subsection shall
be made out of the Federal Old Age and Survivors Insurance Trust Fund
and the Federal Disability Insurance Trust Fund.
(b) Interim Authority for Appointment and Compensation.--
(1) Appointment of commissioner.--Within 60 days of the
date of the enactment of this title, the Commissioner of Social
Security shall be appointed by the President pursuant to
section 702 of the Social Security Act (as amended by this
title). If the appointment is made pursuant to such section
before the date established pursuant to section 107(a), the
Commissioner of Social Security shall also perform the duties
assigned to the Commissioner of Social Security in the
Department of Health and Human Services.
(2) Other appointments.--At any time on or after the date
of the enactment of this title any of the other officers
provided for in sections 702 and 703 of the Social Security Act
(as amended by this title) may be nominated and appointed, as
provided in such sections.
(3) Compensation.--Funds available to any official or
component of the Department of Health and Human Services,
functions of which are transferred to the Commissioner of
Social Security or the Social Security Administration by this
title, may with the approval of the Director of the Office of
Management and Budget, be used to pay the compensation and
expenses of any officer appointed pursuant to this subsection
until such time as funds for that purpose are otherwise
available.
(c) Continuation of Orders, Determinations, Rules, Regulations,
Etc.--All orders, determinations, rules, regulations, permits,
contracts, collective bargaining agreements (and ongoing negotiations
relating to such collective bargaining agreements), recognitions of
labor organizations, certificates, licenses, and privileges--
(1) which have been issued, made, promulgated, granted, or
allowed to become effective, in the exercise of functions (A)
which were exercised by the Secretary of Health and Human
Services (or the Secretary's delegate), and (B) which relate to
functions which, by reason of this title, the amendments made
thereby, and regulations prescribed thereunder, are vested in
the Commissioner of Social Security; and
(2) which are in effect immediately before the date
established pursuant to section 107(a),
shall (to the extent that they relate to functions described in
paragraph (1)(B)) continue in effect according to their terms until
modified, terminated, suspended, set aside, or repealed by such
Commissioner, except that any collective bargaining agreement shall
remain in effect until the date of termination specified in such
agreement.
(d) Continuation of Proceedings.--The provisions of this title
(including the amendments made thereby) shall not affect any proceeding
pending before the Secretary of Health and Human Services immediately
before the date established pursuant to section 107(a), with respect to
functions vested (by reason of this title, the amendments made thereby,
and regulations prescribed thereunder) in the Commissioner of Social
Security, except that such proceedings, to the extent that such
proceedings relate to such functions, shall continue before such
Commissioner. Orders shall be issued under any such proceeding, appeals
taken therefrom, and payments shall be made pursuant to such orders, in
like manner as if this title had not been enacted, and orders issued in
any such proceeding shall continue in effect until modified,
terminated, superseded, or repealed by such Commissioner, by a court of
competent jurisdiction, or by operation of law.
(e) Continuation of Suits.--Except as provided in this subsection--
(1) the provisions of this title shall not affect suits
commenced before the date established pursuant to section
107(a); and
(2) in all such suits proceedings shall be had, appeals
taken, and judgments rendered, in the same manner and effect as
if this title had not been enacted.
No cause of action, and no suit, action, or other proceeding commenced
by or against any officer in such officer's official capacity as an
officer of the Department of Health and Human Services, shall abate by
reason of the enactment of this title. Causes of action, suits,
actions, or other proceedings may be asserted by or against the United
States and the Social Security Administration, or such official of such
Administration as may be appropriate, and, in any litigation pending
immediately before the date established pursuant to section 107(a), the
court may at any time, on the court's own motion or that of a party,
enter an order which will give effect to the provisions of this
subsection (including, where appropriate, an order for substitution of
parties).
(f) Continuation of Penalties.--This title shall not have the
effect of releasing or extinguishing any criminal prosecution, penalty,
forfeiture, or liability incurred as a result of any function which (by
reason of this title, the amendments made thereby, and regulations
prescribed thereunder) is vested in the Commissioner of Social
Security.
(g) Judicial Review.--Orders and actions of the Commissioner of
Social Security in the exercise of functions vested in such
Commissioner under this title (and the amendments made thereby) shall
be subject to judicial review to the same extent and in the same manner
as if such orders had been made and such actions had been taken by the
Secretary of Health and Human Services in the exercise of such
functions immediately before the date established pursuant to section
107(a). Any statutory requirements relating to notice, hearings, action
upon the record, or administrative review that apply to any function so
vested in such Commissioner shall continue to apply to the exercise of
such function by such Commissioner.
(h) Exercise of Functions.--In the exercise of the functions vested
in the Commissioner of Social Security under this title, the amendments
made thereby, and regulations prescribed thereunder, such Commissioner
shall have the same authority as that vested in the Secretary of Health
and Human Services with respect to the exercise of such functions
immediately preceding the vesting of such functions in such
Commissioner, and actions of such Commissioner shall have the same
force and effect as when exercised by such Secretary.
(i) Report.--Within 120 days of the date of the enactment of this
title, the transition director and the Commissioner of Social Security
shall report to the Congress on the status of the transition to an
independent Social Security Administration, and on any significant
internal restructuring or management improvements that are proposed to
be undertaken.
SEC. 107. EFFECTIVE DATES.
(a) In General.--Except as provided in subsection (b), this title,
and the amendments made by such title shall take effect on the earlier
of--
(1) the date which is 180 days after the date of the
enactment of this Act, or
(2) a date designated by the President.
(b) Transitional Rules.--Section 106 shall take effect on the date
of the enactment of this title.
TITLE II--CONFORMING AMENDMENTS
SEC. 201. AMENDMENTS TO TITLES II AND XVI OF THE SOCIAL SECURITY ACT.
(a) In General.--Title II (42 U.S.C. 401 et seq.) (other than
section 201, section 218(d), section 231(c), section 226, and section
226A) and title XVI (42 U.S.C. 1382 et seq.) (other than sections
1614(f)(2)(B) and 1616(e)(3)) are each amended--
(1) by striking, wherever it appears therein, ``Secretary
of Health and Human Services'' and inserting ``Commissioner of
Social Security'';
(2) by striking, wherever it appears therein, ``Department
of Health and Human Services'' and inserting ``Social Security
Administration'';
(3) by striking, wherever it appears therein,
``Department'' (but only if it is not immediately succeeded by
the words ``of Health and Human Services'', and only if it is
used in reference to the Department of Health and Human
Services) and inserting ``Administration'';
(4) by striking, wherever it appears therein, each of the
following words (but, in the case of any such word only if such
word refers to the Secretary of Health and Human Services):
``Secretary'', ``Secretary's'', ``his'', ``him'', ``he'',
``her'', and ``she'', and inserting (in the case of the word
``Secretary'') ``Commissioner of Social Security'', (in the
case of the word ``Secretary's'') ``Commissioner's'', (in the
case of the word ``his'') ``the Commissioner's'', (in the case
of the word ``him'') ``the Commissioner'', (in the case of the
word ``her'') ``the Commissioner'' or ``the Commissioner's'',
as may be appropriate, and (in the case of the words ``she'' or
``he'') ``the Commissioner''; and
(5) by striking, wherever it appears therein, ``Internal
Revenue Code of 1954'' and inserting ``Internal Revenue Code of
1986''.
(b) Amendments to Section 201.--(1)(A) Sections 201(a)(3),
201(a)(4), 201(b)(1), and 201(b)(2) (42 U.S.C. 401(a)(3), 401(a)(4),
401(b)(1), and 401(b)(2), respectively) are each amended by striking
``Secretary of Health and Human Services'' each place it appears and
inserting ``Commissioner of Social Security''; and
(B) Sections 201(a)(3) and 201(b)(1) (42 U.S.C. 401(a)(3) and
401(b)(1), respectively) are each amended by striking ``such
Secretary'' and inserting ``such Commissioner''.
(2) Section 201(c) (42 U.S.C. 401(c)) is amended--
(A) in the first sentence, by striking ``shall be composed
of'' and all that follows down through ``ex officio'' and
inserting the following: ``shall be composed of the
Commissioner of Social Security, the Secretary of the Treasury,
and the Secretary of Health and Human Services, all ex
officio''; and
(B) in the fifth sentence, by striking ``The Commissioner
of Social Security'' and inserting ``The Deputy Commissioner of
Social Security''.
(3) Section 201(g)(1)(A) (42 U.S.C. 401(g)(1)(A)) is amended--
(A) in clause (i), by striking ``by him and the Secretary
of Health and Human Services'' and inserting ``by him, the
Commissioner of Social Security, and the Secretary of Health
and Human Services'', and by striking ``by the Department of
Health and Human Services and the Treasury Department'' and
inserting ``by the Social Security Administration, the
Department of Health and Human Services, and the Department of
the Treasury'';
(B) in clause (ii), by striking ``method prescribed by the
Board of Trustees under paragraph (4)'' and inserting
``applicable method prescribed under paragraph (4)'', by
striking ``the Secretary of Health and Human Services'' and
inserting ``the Commissioner of Social Security and the
Secretary of Health and Human Services'', and by striking ``the
Department of Health and Human Services'' and inserting ``the
Social Security Administration and the Department of Health and
Human Services''; and
(C) by striking the last sentence and inserting the
following: ``There are hereby authorized to be made available
for expenditure, out of any or all of the Trust Funds, such
amounts as the Congress may deem appropriate to pay the costs
of the part of the administration of this title and title XVI
for which the Commissioner of Social Security is responsible,
the costs of title XVIII for which the Secretary of Health and
Human Services is responsible, and the costs of carrying out
the functions of the Social Security Administration, specified
in section 232, which relate to the administration of
provisions of the Internal Revenue Code of 1986 other than
those referred to in clause (i) of the first sentence of this
subparagraph.''.
(4) Section 201(g)(1) (42 U.S.C. 401(g)(1)) is further amended by
striking subparagraph (B) and inserting the following new
subparagraphs:
``(B) After the close of each fiscal year--
``(i) the Commissioner of Social Security shall determine
(I) the portion of the costs, incurred during such fiscal year,
of administration of this title and title XVI and of carrying
out the functions of the Social Security Administration,
specified in section 232, which relate to the administration of
provisions of the Internal Revenue Code of 1986 (other than
those referred to in clause (i) of the first sentence of
subparagraph (A)), which should have been borne by the general
fund in the Treasury, (II) the portion of such costs which
should have been borne by the Federal Old-Age and Survivors
Insurance Trust Fund, and (III) the portion of such costs which
should have been borne by the Federal Disability Insurance
Trust Fund, and
``(ii) the Secretary of Health and Human Services shall
determine (I) the portion of the costs, incurred during such
fiscal year, of administration of title XVIII which should have
been borne by the general fund in the Treasury, (II) the
portion of such costs which should have been borne by the
Federal Hospital Insurance Trust Fund, and (III) the portion of
such costs which should have been borne by the Federal
Supplementary Medical Insurance Trust Fund,
except that the determination of the amounts to be borne by the general
fund in the Treasury with respect to expenditures incurred in carrying
out such functions specified in section 232 shall be made pursuant to
the applicable method prescribed under paragraph (4) of this
subsection.
``(C) After the determinations under subparagraph (B) have been
made for any fiscal year, the Commissioner of Social Security and the
Secretary of Health and Human Services shall jointly certify to the
Managing Trustee the amounts, if any, which should be transferred from
one to any of the other of such Trust Funds and the amounts, if any,
which should be transferred between the Trust Funds (or one of the
Trust Funds) and the general fund in the Treasury, in order to ensure
that each of the Trust Funds and the general fund in the Treasury have
borne their proper share of the costs, incurred during such fiscal
year, for (i) the part of the administration of this title and title
XVI for which the Commissioner of Social Security is responsible, (ii)
the part of the administration of this title and title XVIII for which
the Secretary of Health and Human Services is responsible, and (iii)
carrying out the functions of the Social Security Administration,
specified in section 232, which relate to the administration of
provisions of the Internal Revenue Code of 1986 (other than those
referred to in clause (i) of the first sentence of subparagraph (A)).
The Managing Trustee shall transfer any such amounts in accordance with
any certification so made.''.
(5) Section 201(g)(2) (42 U.S.C. 401(g)(2)) is amended, in the
second sentence, by striking ``established and maintained by the
Secretary of Health and Human Services'' and inserting ``maintained by
the Commissioner of Social Security'', and by striking ``Secretary
shall furnish'' and inserting ``Commissioner of Social Security shall
furnish''.
(6) Section 201(g)(4) (42 U.S.C. 401(g)(4)) is amended to read as
follows:
``(4) The Commissioner of Social Security shall utilize the method
prescribed pursuant to this paragraph, as in effect immediately before
the date of the enactment of the Social Security Administration
Independence Act of 1994 for determining the costs which should be
borne by the general fund in the Treasury of carrying out the functions
of the Social Security Administration, specified in section 232, which
relate to the administration of provisions of the Internal Revenue Code
of 1986 (other than those referred to in clause (i) of the first
sentence of paragraph (1)(A)). If at any time or times thereafter the
Boards of Trustees of such Trust Funds consider such action advisable,
such Boards may modify the method of determining such costs.''.
(7) Section 201(i)(1) (42 U.S.C. 401(i)(1)) is amended to read as
follows:
``(i)(1) The Managing Trustee may accept on behalf of the United
States money gifts and bequests made unconditionally to the Federal
Old-Age and Survivors Insurance Trust Fund, the Federal Disability
Insurance Trust Fund, the Federal Hospital Insurance Trust Fund, or the
Federal Supplementary Medical Insurance Trust Fund or to the Social
Security Administration, the Department of Health and Human Services,
or any part or officer thereof, for the benefit of any of such Funds or
any activity financed through such Funds.''.
(8) Subsections (j) and (k) of section 201 (42 U.S.C. 401) are each
amended by striking ``Secretary'' each place it appears and inserting
``Commissioner of Social Security''.
(9) Section 201(l)(3)(B)(iii)(II) (42 U.S.C. 401(l)(3)(B)(iii)(II))
is amended by striking ``Secretary'' and inserting ``Commissioner of
Social Security''.
(10) Section 201(m)(3) (42 U.S.C. 401(m)(3)) is amended by striking
``Secretary of Health and Human Services'' and inserting ``Commissioner
of Social Security''.
(11) Section 201 (42 U.S.C. 401) is amended by striking ``Internal
Revenue Code of 1954'' each place it appears and inserting ``Internal
Revenue Code of 1986''.
(c) Amendments to Section 218.--Section 218(d) (42 U.S.C. 418(d))
is amended by striking ``Secretary'' each place it appears in
paragraphs (3) and (7) and inserting ``Commissioner of Social
Security''.
(d) Amendment to Section 231.--Section 231(c) (42 U.S.C. 431(c)) is
amended by striking ``Secretary determines'' and inserting
``Commissioner of Social Security and the Secretary jointly
determine''.
SEC. 202. OTHER AMENDMENTS.
(a) Amendments to Title VII.--(1) Title VII (42 U.S.C. 901 et seq.)
is amended by adding at the end the following new section:
``duties and authority of secretary
``Sec. 712. The Secretary shall perform the duties imposed upon the
Secretary by this Act. The Secretary is authorized to appoint and fix
the compensation of such officers and employees, and to make such
expenditures as may be necessary for carrying out the functions of the
Secretary under this Act.''.
(2) Section 706 (42 U.S.C. 907) is amended--
(A) in subsection (a), by striking ``Advisory Council on
Social Security'' and all that follows through ``disability
insurance program and'' and inserting ``Advisory Council on
Hospital and Supplementary Medical Insurance for the purpose of
reviewing the status of the Federal Hospital Insurance Trust
Fund and the Federal Supplementary Medical Insurance Trust Fund
in relation to the long-term commitments of'';
(B) in subsection (d), by striking paragraph (1) and by
redesignating paragraphs (2) and (3) as paragraphs (1) and (2),
respectively, and
(C) by striking the section heading and inserting the
following:
``advisory council on hospital and supplementary medical insurance''.
(3) Paragraph (2) of section 709(b) (42 U.S.C. 910(b)) is amended
by striking ``(as estimated by the Secretary)'' and inserting ``(for
amounts which will be paid from the Federal Old-Age and Survivors
Insurance Trust Fund and the Federal Disability Insurance Trust Fund,
as estimated by the Commissioner, and for amounts which will be paid
from the Federal Hospital Insurance Trust and the Federal Supplementary
Medical Insurance Trust Fund, as estimated by the Secretary)''.
(4) Sections 709 and 710 (42 U.S.C. 910 and 911) are amended by
striking ``Internal Revenue Code of 1954'' each place it appears and
inserting ``Internal Revenue Code of 1986''.
(b) Amendments to Title XI.--(1) Section 1101(a) (42 U.S.C.
1301(a)) is amended by adding at the end the following new paragraph:
``(10) The term `Administration' means the Social Security
Administration, except where the context requires otherwise.''.
(2) Section 1106(a) (42 U.S.C. 1306(a)) is amended--
(A) by inserting ``(1)'' after ``(a)'';
(B) by striking ``Department of Health and Human Services''
each place it appears and inserting ``applicable agency'';
(C) by striking ``Secretary'' each place it appears and
inserting ``head of the applicable agency''; and
(D) by adding at the end the following new paragraph:
``(2) For purposes of this subsection and subsection (b), the term
`applicable agency' means--
``(A) the Social Security Administration, with respect to
matter transmitted to or obtained by such Administration or
matter disclosed by such Administration, or
``(B) the Department of Health and Human Services, with
respect to matter transmitted to or obtained by such Department
or matter disclosed by such Department.''.
(3) Section 1106(b) (42 U.S.C. 1306(b)) is amended--
(A) by striking ``Secretary'' each place it appears and
inserting ``head of the applicable agency''; and
(B) by striking ``Department of Health and Human Services''
and inserting ``applicable agency''.
(4) Section 1106(c) (42 U.S.C. 1306(c)) is amended--
(A) by striking ``the Secretary'' the first place it
appears and inserting ``the Commissioner of Social Security or
the Secretary''; and
(B) by striking ``the Secretary'' each subsequent place it
appears and inserting ``such Commissioner or Secretary''.
(5) Section 1107(b) (42 U.S.C. 1307(b)) is amended by striking
``the Secretary of Health and Human Services'' and inserting ``the
Commissioner of Social Security or the Secretary''.
(6) Section 1110 (42 U.S.C. 1310) is amended--
(A) in subsection (a)(2), by inserting ``(or the
Commissioner, with respect to any jointly financed cooperative
agreement or grant concerning titles II or XVI)'' after
``Secretary'';
(B) in subsection (b)--
(i) by striking ``Secretary'' each place it appears
and inserting ``Commissioner'', and
(ii) by striking ``the Secretary's'' each place it
appears and inserting ``the Commissioner's''; and
(C) by striking ``he'', ``his'', ``him'', and ``himself''
each place they appear (except in subsection (b)(2)(A)) and
inserting ``the Commissioner'', ``the Commissioner's'', ``the
Commissioner'', and ``himself or herself'', respectively.
(7) Subsections (b) and (c) of section 1127 (42 U.S.C. 1320a-6) are
each amended by striking ``Secretary'' and inserting ``Commissioner of
Social Security''.
(8) Section 1128(f) (42 U.S.C. 1320a-7(f)) is amended by inserting
after ``section 205(g)'' the following: ``, except that, in so applying
such sections and section 205(l), any reference therein to the
Commissioner of Social Security or the Social Security Administration
shall be considered a reference to the Secretary or the Department of
Health and Human Services, respectively''.
(9) Section 1131 (42 U.S.C. 1320b-1) is amended--
(A) by striking ``Secretary'' each place it appears and
inserting ``Commissioner of Social Security'';
(B) in subsection (a)(1)(A), by adding ``or'' at the end;
(C) in subsection (a)(1)(B), by striking ``or'' at the end;
(D) by striking subsection (a)(1)(C);
(E) by redesignating subsection (a)(2) as subsection
(a)(3);
(F) by inserting after subsection (a)(1) the following new
paragraph:
``(2) the Secretary makes a finding of fact and a decision as to
the entitlement under section 226 of any individual to hospital
insurance benefits under part A of title XVIII, or''; and
(G) by striking ``he'' in the matter in subsection (a)
following paragraph (3) (as so redesignated) and inserting
``the Commissioner of Social Security''.
(10) Section 1155 (42 U.S.C. 1320c-4) is amended by striking ``(to
the same extent as is provided in section 205(b))'' and all that
follows and inserting ``(to the same extent as beneficiaries under
title II are entitled to a hearing by the Commissioner of Social
Security under section 205(b)). For purposes of the preceding sentence,
subsection (l) of section 205 shall apply, except that any reference in
such subsection to the Commissioner of Social Security or the Social
Security Administration shall be deemed a reference to the Secretary or
the Department of Health and Human Services, respectively. Where the
amount in controversy is $2,000 or more, such beneficiary shall be
entitled to judicial review of any final decision relating to a
reconsideration described in this subsection.''.
(11) Sections 1101, 1106, 1107, and 1137 (42 U.S.C. 1301, 1306,
1307, and 1320b-7, respectively) are amended by striking ``Internal
Revenue Code of 1954'' each place it appears and inserting ``Internal
Revenue Code of 1986''.
(c) Amendments to Title XVIII.--(1) Subsections (a) and (f) of
section 1817 (42 U.S.C. 1395i) are amended by striking ``Secretary of
Health and Human Services'' each place it appears and inserting
``Commissioner of Social Security''.
(2) Section 1840(a) (42 U.S.C. 1395s(a)) is amended--
(A) in paragraph (1), by striking ``Secretary'' and
inserting ``Commissioner of Social Security'', and by adding at
the end the following new sentence: ``Such regulations shall be
prescribed after consultation with the Secretary.''; and
(B) in paragraph (2), by striking ``Secretary of Health and
Human Services'' and inserting ``Commissioner of Social
Security''.
(3) Section 1872 (42 U.S.C. 1395ii) is amended by inserting after
``title II'' the following: ``, except that, in applying such
provisions with respect to this title, any reference therein to the
Commissioner of Social Security or the Social Security Administration
shall be considered a reference to the Secretary or the Department of
Health and Human Services, respectively''.
(4) Section 1869(b)(1) (42 U.S.C. 1395ff(b)(1)) and the last
sentence of section 1876(c)(5)(B) (42 U.S.C. 1395mm(c)(5)(B)) are
amended by inserting after ``section 205(g)'' the following: ``, except
that, in so applying such sections and section 205(l), any reference
therein to the Commissioner of Social Security or the Social Security
Administration shall be considered a reference to the Secretary or the
Department of Health and Human Services, respectively''.
(5) Sections 1817, 1862, and 1886 (42 U.S.C. 1395i, 1395y, and
1395ww, respectively) are amended by striking ``Internal Revenue Code
of 1954'' each place it appears and inserting ``Internal Revenue Code
of 1986''.
(d) Amendments to Title XIX.--(1) Section 1905(q)(2) (42 U.S.C.
1396d(q)(2)) is amended by striking ``Secretary'' and inserting
``Commissioner of Social Security''.
(2) Section 1910(b)(2) (42 U.S.C. 1396i(b)(2)) is amended, in the
first sentence, by inserting after ``section 205(g)'' the following:
``, except that, in so applying such sections and section 205(l), any
reference therein to the Commissioner of Social Security or the Social
Security Administration shall be considered a reference to the
Secretary or the Department of Health and Human Services,
respectively''.
(e) Amendment to Title XX.--Section 2002(a)(2)(B) (42 U.S.C.
1397a(a)(2)(B)) is amended by striking ``Internal Revenue Code of
1954'' and inserting ``Internal Revenue Code of 1986''.
(f) Amendments to Title 5, United States Code.--Title 5, United
States Code, is amended--
(1) by adding at the end of section 5311 the following new
item:
``Commissioner, Social Security Administration.'';
(2) by adding at the end of section 5313 the following new
item:
``Deputy Commissioner, Social Security Administration.'';
and
(3) by striking ``Secretary of Health Education, and
Welfare'' each place it appears in section 8141 and inserting
``Commissioner of Social Security''.
(g) Amendments to Food Stamp Act of 1977.--(1) Sections 6(c)(3) and
8(e)(6) of the Food Stamp Act of 1977 (7 U.S.C. 2015(c)(3) and
2017(e)(6)) are each amended by inserting ``the Commissioner of Social
Security and'' before ``the Secretary of Health and Human Services''.
(2) Sections 6(g), 11(j), and 16(e) of such Act (7 U.S.C. 2015(g),
2020(j), and 2025(e)) are each amended by striking ``Secretary of
Health and Human Services'' each place it appears and inserting
``Commissioner of Social Security''.
(3) Section 11(i) of such Act (7 U.S.C. 2020(i)) is amended by
adding ``, the Commissioner of Social Security'' after ``the
Secretary''.
(h) Amendment to Title 14, United States Code.--Section 707(e)(3)
of title 14, United States Code, is amended by striking ``Secretary of
Health and Human Services'' each place it appears and inserting
``Commissioner of Social Security''.
(i) Amendments to Internal Revenue Code of 1986.--(1) Subsections
(c)(1), (c)(2)(E), (g)(1), (g)(2)(A), and (g)(2)(B) of section 1402 of
the Internal Revenue Code of 1986 (26 U.S.C. 1402) are amended by
striking ``Secretary of Health and Human Services'' each place it
appears and inserting ``Commissioner of Social Security''.
(2) Section 3121(b)(10)(B) of such Code (26 U.S.C. 3121(b)(10)(B))
is amended by striking ``Secretary of Health and Human Services'' each
place it appears and inserting ``Commissioner of Social Security''.
(3) Section 3127 of such Code (26 U.S.C. 3127) is amended by
striking ``Secretary of Health and Human Services'' each place it
appears and inserting ``Commissioner of Social Security''.
(4) Section 6050F(c)(1)(A) of such Code (26 U.S.C. 6050F(c)(1)(A))
is amended by striking ``Secretary of Health and Human Services'' and
inserting ``Commissioner of Social Security''.
(5) Subsections (d) and (f) of section 6057 of such Code (26 U.S.C.
6057) are amended by striking ``Secretary of Health and Human
Services'' each place it appears and inserting ``Commissioner of Social
Security''.
(6) Section 6103(l)(5) of such Code (26 U.S.C. 6103(l)(5)) is
amended--
(A) by striking ``Department of Health and Human Services''
and inserting ``Social Security Administration''; and
(B) by striking ``Secretary of Health and Human Services''
and inserting ``Commissioner of Social Security''.
(7) Subsections (d)(3)(C) and (e) of section 6402 of such Code (26
U.S.C. 6402) are amended by striking ``Secretary of Health and Human
Services'' each place it appears and inserting ``Commissioner of Social
Security''.
(8) Section 6511(d)(5) of such Code (26 U.S.C. 6511(d)(5)) is
amended by striking ``Secretary of Health and Human Services'' and
inserting ``Commissioner of Social Security''.
(j) Amendments to Title 31, United States Code.--Section 3720A(f)
of title 31, United States Code, is amended by striking ``Secretary of
Health and Human Services'' each place it appears in and inserting
``Commissioner of Social Security''.
(k) Amendments to Title 38, United States Code.--Section 5105 of
title 38, United States Code, is amended--
(1) by striking ``Secretary of Health and Human Services''
each place it appears and inserting ``Commissioner of Social
Security''; and
(2) by striking the second sentence of subsection (b) and
inserting the following new sentence: ``A copy of each such
application filed with either the Secretary or the
Commissioner, together with any additional information and
supporting documents (or certifications thereof) which may have
been received by the Secretary or the Commissioner with such
application, and which may be needed by the other official in
connection therewith, shall be transmitted by the Secretary or
the Commissioner receiving the application to the other
official.''.
(l) Amendments to Inspector General Act of 1978.--The Inspector
General Act of 1978 (5 U.S.C. App.) is amended--
(1) in section 9(a)(1), by striking ``and'' at the end of
subparagraph (U), and by adding at the end the following new
subparagraph:
``(V) of the Social Security Administration, the
functions of the Inspector General of the Department of
Health and Human Services relating to the
administration of the old-age, survivors, and
disability insurance program under title II of the
Social Security Act and of the supplemental security
income program under title XVI of such Act; and'';
(2) in section 11(1), by striking ``or'' after
``Commission'' and inserting a semicolon, and by inserting
after ``Board;'' the following: ``or the Commissioner of Social
Security;''; and
(3) in section 11(2), by striking ``or'' after
``Information Agency,'', and by inserting after ``Veterans'
Administration'' the following: ``, or the Social Security
Administration;''.
SEC. 203. RULES OF CONSTRUCTION.
(a) References to the Department of Health and Human Services.--
Whenever any reference is made in any provision of law (other than this
Act or a provision of law amended by this Act), regulation, rule,
record, or document to the Department of Health and Human Services with
respect to such Department's functions under the old-age, survivors,
and disability insurance program under title II of the Social Security
Act or the supplemental security income program under title XVI of such
Act, such reference shall be considered a reference to the Social
Security Administration.
(b) References to the Secretary of Health and Human Services.--
Whenever any reference is made in any provision of law (other than this
Act or a provision of law amended by this Act), regulation, rule,
record, or document to the Secretary of Health and Human Services with
respect to such Secretary's functions under the old-age, survivors, and
disability insurance program under title II of the Social Security Act
or the supplemental security income program under title XVI of such
Act, such reference shall be considered a reference to the Commissioner
of Social Security.
(c) References to Other Officers and Employees.--Whenever any
reference is made in any provision of law (other than this Act or a
provision of law amended by this Act), regulation, rule, record, or
document to any other officer or employee of the Department of Health
and Human Services with respect to such officer or employee's functions
under the old-age, survivors, and disability insurance program under
title II of the Social Security Act or the supplemental security income
program under title XVI of such Act, such reference shall be considered
a reference to the appropriate officer or employee of the Social
Security Administration.
SEC. 204. EFFECTIVE DATES.
(a) In General.--Except as provided in subsection (b), the
provisions of this title shall take effect on the date established
pursuant to section 107(a).
(b) Exceptions.--Subsections (f)(1), (f)(2), and (l) of section 202
shall take effect on the date of the enactment of this title.
TITLE III--SOCIAL SECURITY DISABILITY AND REHABILITATION
SEC. 301. SHORT TITLE.
This title may be cited as the ``Social Security Disability and
Rehabilitation Act of 1994''.
SEC. 302. REFORM OF MONTHLY INSURANCE BENEFITS BASED ON DISABILITY
INVOLVING SUBSTANCE ABUSE.
(a) Social Security Disability Insurance.--
(1) In general.--Section 223 of the Social Security Act (42
U.S.C. 423) is amended by adding at the end the following new
subsection:
``Limitation on Payment of Benefits by Reason of Substance Abuse
``(j)(1)(A) Notwithstanding any other provision of this title, no
individual whose disability is based in whole or in part on a medical
determination that the individual is a drug addict or alcoholic shall
be entitled to benefits under this title based on such disability with
respect to any month, unless such individual--
``(i) is undergoing, or on a waiting list for, any medical
or psychological treatment that may be appropriate for such
individual's condition as a drug addict or alcoholic (as the
case may be) and for the stage of such individual's
rehabilitation at an institution or facility approved for
purposes of this paragraph by the Secretary (so long as access
to such treatment is reasonably available, as determined by the
Secretary), and
``(ii) demonstrates in such manner as the Secretary
requires, including at a continuing disability review not later
than one year after such determination, that such individual is
complying with the terms, conditions, and requirements of such
treatment and with the requirements imposed by the Secretary
under subparagraph (B).
``(B) The Secretary shall provide for the monitoring and testing of
all individuals who are receiving benefits under this title and who as
a condition of such benefits are required to be undergoing treatment
and complying with the terms, conditions, and requirements thereof as
described in subparagraph (A), in order to assure such compliance and
to determine the extent to which the imposition of such requirements is
contributing to the achievement of the purposes of this title. The
Secretary may retain jurisdiction in the case of a hearing before the
Secretary under this title to the extent the Secretary determines
necessary to carry out the preceding sentence. The Secretary shall
annually submit to the Congress a full and complete report on the
Secretary's activities under this paragraph.
``(C) The representative payee and the referral and monitoring
agency for any individual described in subparagraph (A) shall report to
the Secretary any noncompliance with the terms, conditions, and
requirements of the treatment described in subparagraph (A) and with
the requirements imposed by the Secretary under subparagraph (B).
``(D)(i) If the Secretary finds that an individual is not complying
with the terms, conditions, and requirements of the treatment described
in subparagraph (A), or with the requirements imposed by the Secretary
under subparagraph (B), or both, the Secretary, in lieu of termination,
may suspend such individual's benefits under this title until
compliance has been reestablished, including compliance with any
additional requirements determined to be necessary by the Secretary.
``(ii) Any period of suspension under clause (i) shall be taken
into account in determining any 24-month period described in
subparagraph (E) and shall not be taken into account in determining the
36-month period described in such subparagraph.
``(E)(i) Except as provided in clause (ii), no individual described
in subparagraph (A) shall be entitled to benefits under this title for
any month following the 24-month period beginning with the
determination of the disability described in such subparagraph.
``(ii) If at the end of the 24-month period described in clause
(i), the individual furnishes evidence in accordance with subsection
(d)(5) that the individual continues to be under a disability based in
whole or in part on a medical determination that the individual is a
drug addict or alcoholic, such individual shall continue to be entitled
to benefits under this title based on such disability.
``(iii) Subject to clause (iv), if such an individual continues to
be entitled to such benefits for an additional 24-month period
following a determination under clause (ii), clauses (i) and (ii) shall
apply with regard to any further entitlement to such benefits following
the end of such additional period.
``(iv) In no event shall such an individual be entitled to benefits
under this title for more than a total of 36 months, unless upon the
termination of the 36th month such individual furnishes evidence in
accordance with subsection (d)(5) that the individual is under a
disability which is not related in part to a medical determination that
the individual is a drug addict or alcoholic.
``(2)(A) Any benefits under this title payable to any individual
referred to in paragraph (1), including any benefits payable in a lump
sum amount, shall be payable only pursuant to a certification of such
payment to a qualified organization acting as a representative payee of
such individual pursuant to section 205(j).
``(B) For purposes of subparagraph (A) and section 205(j)(4), the
term `qualified organization'--
``(i) shall have the meaning given such term by section
205(j)(4)(B), and
``(ii) shall mean an agency or instrumentality of a State
or a political subdivision of a State.
``(3) Monthly insurance benefits under this title which would be
payable to any individual (other than the disabled individual to whom
benefits are not payable by reason of this subsection) on the basis of
the wages and self-employment income of such a disabled individual but
for the provisions of paragraph (1), shall be payable as though such
disabled individual were receiving such benefits which are not payable
under this subsection.''
(2) Conforming amendments.--
(A) Section 205(j)(1) of such Act (42 U.S.C.
405(j)(1)) is amended by inserting '', or in the case
of any individual referred to in section 223(j)(1)(A)''
after ``thereby''.
(B) Section 205(j)(2)(D)(ii)(II) of such Act (42
U.S.C. 405(j)(2)(D)(ii)(II)) is amended by striking
``legally incompetent or under the age of 15'' and
inserting ``legally incompetent, under the age of 15,
or a drug addict or alcoholic referred to in section
223(j)(1)(A)''.
(b) Supplemental Security Income.--Paragraph (3) of section 1611(e)
of the Social Security Act (42 U.S.C. 1382(e)) is amended to read as
follows:
``(3)(A)(i) No person who is an aged, blind, or disabled individual
solely by reason of disability (as determined under section 1614(a)(3))
shall be an eligible individual or eligible spouse for purposes of this
title with respect to any month if such individual's disability is
based in whole or in part on a medical determination that the
individual is a drug addict or alcoholic, unless such individual--
``(I) is undergoing, or on a waiting list for, any medical
or psychological treatment that may be appropriate for such
individual's condition as a drug addict or alcoholic (as the
case may be) and for the stage of such individual's
rehabilitation at an institution or facility approved for
purposes of this paragraph by the Secretary (so long as access
to such treatment is reasonably available, as determined by the
Secretary), and
``(II) demonstrates in such manner as the Secretary
requires, including at a continuing disability review not later
than one year after such determination, that such individual is
complying with the terms, conditions, and requirements of such
treatment and with the requirements imposed by the Secretary
under clause (ii).
``(ii) The Secretary shall provide for the monitoring and testing
of all individuals who are receiving benefits under this title and who
as a condition of such benefits are required to be undergoing treatment
and complying with the terms, conditions, and requirements thereof as
described in clause (i), in order to assure such compliance and to
determine the extent to which the imposition of such requirements is
contributing to the achievement of the purposes of this title. The
Secretary may retain jurisdiction in the case of a hearing before the
Secretary under this title to the extent the Secretary determines
necessary to carry out the preceding sentence. The Secretary shall
annually submit to the Congress a full and complete report on the
Secretary's activities under this subparagraph.
``(iii) The representative payee and the referral and monitoring
agency for any individual described in clause (i) shall report to the
Secretary any noncompliance with the terms, conditions, and
requirements of the treatment described in clause (i) and with the
requirements imposed by the Secretary under clause (ii).
``(iv)(I) If the Secretary finds that an individual is not
complying with the terms, conditions, and requirements of the treatment
described in clause (i), or with the requirements imposed by the
Secretary under clause (ii), or both, the Secretary, in lieu of
termination, may suspend such individual's benefits under this title
until compliance has been reestablished, including compliance with any
additional requirements determined to be necessary by the Secretary.
``(II) Any period of suspension under subclause (I) shall be taken
into account in determining any 24-month period described in clause (v)
and shall not be taken into account in determining the 36-month period
described in such clause.
``(v)(I) Except as provided in subclause (II), no individual
described in clause (i) shall be entitled to benefits under this title
for any month following the 24-month period beginning with the
determination of the disability described in such clause.
``(II) If at the end of the 24-month period described in subclause
(I), the individual furnishes evidence in accordance with section
223(d)(5) that the individual continues to be under a disability based
in whole on a medical determination that the individual is a drug
addict or alcoholic, such individual shall be entitled to benefits
under this title based on such disability for no more than an
additional 36 months.
``(III) Subject to subclause (IV), if such an individual continues
to be entitled to such benefits for an additional 24-month period
following a determination under subclause (II), subclauses (I) and (II)
shall apply with regard to any further entitlement to such benefits
following the end of such additional period.
``(IV) In no event shall such an individual be entitled to benefits
under this title for more than a total of 36 months, unless upon the
termination of the 36th month such individual furnishes evidence in
accordance with section 223(d)(5) that the individual is under a
disability which is not related in part to a medical determination that
the individual is a drug addict or alcoholic.
``(B)(i) Any benefits under this title payable to any individual
referred to in subparagraph (A), including any benefits payable in a
lump sum amount, shall be payable only pursuant to a certification of
such payment to a qualified organization acting as a representative
payee of such individual pursuant to section 1631(a)(2)(A)(ii).
``(ii) For purposes of clause (i) and section 1631(a)(2)(D), the
term `qualified organization'--
``(I) shall have the meaning given such term by section
1631(a)(2)(D)(ii), and
``(II) shall mean an agency or instrumentality of a State
or a political subdivision of a State.''
(c) Effective Dates; Authorizations.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to benefits payable
for determinations of disability made 90 or more days after the
date of the enactment of this Act.
(2) Current determinations.--
(A) In general.--With respect to any individual
described in subparagraph (B), the Secretary of Health
and Human Services shall provide during the 3-year
period beginning after the date of the enactment of
this Act for the application of the amendments made by
this section to such individual with the time periods
described in such amendments to begin upon such
application.
(B) Individual described.--An individual is
described in this subparagraph if such individual is
entitled to benefits under title II or XVI of the
Social Security Act based on a disability determined
before the date described in paragraph (1) to be based
in whole or in part on a medical determination that the
individual is a drug addict or alcoholic.
(3) Authorization of appropriations.--There are authorized
to be appropriated such sums as may be necessary to carry out
the purposes of the provisions of, and the amendments made by,
this section.
SEC. 303. PRIORITY OF TREATMENT.
The Secretary of Health and Human Services, through the
Administrator of the Substance Abuse and Mental Health Services
Administration, shall assure that every individual receiving disability
benefits under title II or XVI of the Social Security Act based in
whole or in part on a medical determination that the individual is a
drug addict or alcoholic be given high priority for treatment through
entities supported by the various States through any substance abuse
block grant authorized under law.
SEC. 304. ESTABLISHMENT OF REFERRAL MONITORING AGENCIES REQUIRED IN ALL
STATES.
The Secretary of Health and Human Services shall, within 1 year of
the date of the enactment of this Act, provide for the establishment of
referral and monitoring agencies for each State for the purpose of
carrying out the treatment requirements under sections 223(j)(1) and
1611(e)(3)(A) of the Social Security Act (42 U.S.C. 423(j)(1) and
1382(e)(3)(A)).
SEC. 305. PROCEEDS FROM CERTAIN CRIMINAL ACTIVITIES CONSTITUTE
SUBSTANTIAL GAINFUL EMPLOYMENT.
(a) Social Security Disability Insurance.--Section 223(d)(4) of the
Social Security Act (42 U.S.C. 423(d)(4)) is amended by inserting the
following after the first sentence: ``If an individual engages in a
criminal activity to support substance abuse, any proceeds derived from
such activity shall demonstrate such individual's ability to engage in
substantial gainful activity.''.
(b) Supplemental Security Income.--Section 1614(a)(3)(D) of the
Social Security Act (42 U.S.C. 1382(a)(3)(D)) is amended by inserting
the following after the first sentence: ``If an individual engages in a
criminal activity to support substance abuse, any proceeds derived from
such activity shall demonstrate such individual's ability to engage in
substantial gainful activity.''.
(c) Effective Date.--The amendments made by this section shall
apply to disability determinations conducted on or after the date of
the enactment of this Act.
SEC. 306. CONSISTENT PENALTY PROVISIONS FOR SSDI AND SSI PROGRAMS.
(a) Felony Penalties for Fraud.--
(1) In general.--Subsection (a) of section 1631 of the
Social Security Act (42 U.S.C. 1383a) is amended by striking
``shall be guilty of a misdemeanor and upon conviction thereof
shall be fined not more than $1,000 or imprisoned for not more
than one year, or both'' and inserting ``shall be guilty of a
felony and upon conviction thereof shall be fined under title
18, United States Code, or imprisoned for not more than five
years, or both''.
(2) Representative payees.--
(A) Ssdi.--Subsections (b) and (c) of section 208
of such Act (42 U.S.C. 408) are amended to read as
follows:
``(b)(1) Any person or other entity who is convicted of a violation
of any of the provisions of this section, if such violation is
committed by such person or entity in his role as, or in applying to
become, a certified payee under section 205(j) on behalf of another
individual (other than such person's spouse or an entity described in
section 223(j)(2)(B)(ii)), shall be guilty of a felony and upon
conviction thereof shall be fined under title 18, United States Code,
or imprisoned for not more than five years, or both.
``(2) In any case in which the court determines that a violation
described in paragraph (1) includes a willful misuse of funds by such
person or entity, the court may also require that full or partial
restitution of such funds be made to the individual for whom such
person or entity was the certified payee.
``(3) Any person or entity convicted of a felony under this section
or under section 1632(b) may not be certified as a payee under section
205(j).
``(c) For the purpose of subsection (a)(7), the terms `social
security number' and `social security account number' mean such numbers
as are assigned by the Secretary under section 205(c)(2) whether or
not, in actual use, such numbers are called social security numbers.''
(B) Ssi.--Subsection (b)(1) of section 1632 of such
Act (42 U.S.C. 1383a) is amended by striking ``(other
than such person's spouse)'' and all that follows
through the period and inserting ``(other than such
person's spouse or an entity described in section
1611(e)(3)(B)(ii)(II)), shall be guilty of a felony and
upon conviction thereof shall be fined under title 18,
United States Code, or imprisoned for not more than
five years, or both.''
(b) Civil Administrative Penalties.--
(1) Ssdi.--Section 208 of the Social Security Act (42
U.S.C. 408) is amended by adding at the end the following new
subsections:
``(e) For administrative penalties for false claims and statements
with respect to which an individual or other entity knows or has reason
to know such falsity, see chapter 38 of title 31, United States Code.
``(f) In the case of the second or subsequent imposition of an
administrative or criminal penalty on any person or other entity under
this section, the Secretary may exclude such person or entity from
participation in any program under this title and titles V, XVI, XVIII,
and XX, and may direct that such person or entity be excluded from any
State health care program (as defined in section 1128(h)) and any other
Federal program as provided by law.''
(2) Ssi.--
(A) In general.--Section 1632 of such Act (42
U.S.C. 1383a) is amended by adding at the end the
following new subsections:
``(c) For administrative penalties for false claims and statements
with respect to which an individual or other entity knows or has reason
to know such falsity, see chapter 38 of title 31, United States Code.
``(d) In the case of the second or subsequent imposition of an
administrative or criminal penalty on any person or other entity under
this section, the Secretary may exclude such person or entity from
participation in any program under this title and titles II, V, XVIII,
and XX, and may direct that such person or entity be excluded from any
State health care program (as defined in section 1128(h)) and any other
Federal program as provided by law.''
(B) Conforming amendment.--The heading for section
1632 of such Act (42 U.S.C. 1383a) is amended by
striking ``for fraud''.
(c) Effective Date.--The amendments made by this section shall be
effective on or after the date of the enactment of this Act.
Passed the Senate March 2 (legislative day, February 22),
1994.
Attest:
Secretary.
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