H.R. 623 (103rd): Social Security Reorganization Act of 1993

103rd Congress, 1993–1994. Text as of Jan 26, 1993 (Introduced).

Status & Summary | PDF | Source: GPO

HR 623 IH

103d CONGRESS

1st Session

H. R. 623

To establish the Social Security Administration as an independent agency, which shall be headed by a Social Security Board, and which shall be responsible for the administration of the old-age, survivors, and disability insurance program under title II of the Social Security Act and the supplemental security income program under title XVI of such Act.

IN THE HOUSE OF REPRESENTATIVES

January 26, 1993

Mr. MCCANDLESS introduced the following bill; which was referred to the Committee on Ways and Means


A BILL

To establish the Social Security Administration as an independent agency, which shall be headed by a Social Security Board, and which shall be responsible for the administration of the old-age, survivors, and disability insurance program under title II of the Social Security Act and the supplemental security income program under title XVI of such Act.

    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.

    This Act may be cited as the ‘Social Security Reorganization Act of 1993’.

TABLE OF CONTENTS

      Sec. 1. Short title and table of contents.

      Sec. 2. Declaration of purpose.

TITLE I--ESTABLISHMENT OF THE SOCIAL SECURITY ADMINISTRATION

      Sec. 101. Establishment of the Social Security Administration as a separate, independent agency; responsibilities of the agency.

      Sec. 102. Social Security Board; Commissioner; Deputy Commissioner; Beneficiary Ombudsman; other officers.

      Sec. 103. Personnel; budgetary matters; facilities and procurement; seal of office.

      Sec. 104. Transfers to the new Social Security Administration.

TITLE II--MISCELLANEOUS PROVISIONS AND CONFORMING AMENDMENTS

      Sec. 201. Contributor and beneficiary bill of rights.

      Sec. 202. Amendments to titles II and XVI of the Social Security Act.

      Sec. 203. Other Amendments.

      Sec. 204. Rules of construction.

TITLE III--EFFECTIVE DATES AND TRANSITIONAL RULES

      Sec. 301. Effective dates.

      Sec. 302. Transitional rules.

SEC. 2. DECLARATION OF PURPOSE.

    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 a Commissioner of Social Security and define the powers and duties of the Commissioner; and

      (5) to provide for delegating major management authorities to the Board and the Commissioner.

TITLE I--ESTABLISHMENT OF THE SOCIAL SECURITY ADMINISTRATION

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

    Section 701 of the Social Security Act 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; COMMISSIONER; DEPUTY COMMISSIONER; BENEFICIARY OMBUDSMAN; OTHER OFFICERS.

    (a) IN GENERAL- Section 702 of the Social Security Act is amended to read as follows:

‘SOCIAL SECURITY BOARD; COMMISSIONER; 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, from among individuals who, by reason of their education, experience, and attainments, are exceptionally qualified to perform the duties of members of the Board.

    ‘(B)(i) Except as provided in clauses (i) and (ii), 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 ending January 31, 1995,

      ‘(II) one shall be appointed for a term ending January 31, 1997, and

      ‘(III) one shall be appointed for a term ending January 31, 1999,

    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, otherwise serve as an officer or employee of any government. If any member of the Board becomes an officer or employee of any government, such member may continue as a member of the Board for not longer than the 30-day period beginning on the date such member becomes such an officer or employee.

    ‘(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 from time to time by the President to serve as Chairperson of the Board.

    ‘(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) appoint a Commissioner of Social Security, as described in subsection (b), to act as the chief operating officer of the Administration responsible for administering such programs,

      ‘(C) constitute three of the members 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,

      ‘(D) make annual budgetary recommendations relating to the Administration and defend such recommendations before the appropriate committees of each House of the Congress,

      ‘(E) make recommendations to the Congress and the President as to the most effective methods of providing economic security through social insurance and as to legislation and matters of administrative policy concerning such programs,

      ‘(F) provide the Congress and the President with the ongoing actuarial and other analysis undertaken by the Administration with respect to such programs and any other information relating to such programs, and

      ‘(G) conduct policy analysis and research relating to such programs.

    ‘(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.

    ‘(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.

‘Commissioner of Social Security

    ‘(b)(1) There shall be in the Administration a Commissioner of Social Security who shall be appointed by the Social Security Board.

    ‘(2)(A) The Commissioner shall be appointed for a term of five years, except that the individual first appointed to the office of Commissioner shall be appointed for a term ending September 30, 1995. An individual appointed to a term of office as Commissioner 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 Commissioner 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 Commissioner for additional terms.

    ‘(B) An individual may be removed from the office of Commissioner before completion of his or her term only for cause found by the Board.

    ‘(3) The Commissioner shall be compensated at the rate provided for level II of the Executive Schedule.

    ‘(4) The Commissioner 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) establish and maintain an efficient and effective operational structure for the Administration,

      ‘(C) devise and implement long-term plans to promote and maintain the effective implementation of such programs,

      ‘(D) make annual budgetary recommendations of the Administration for the ongoing administrative costs of the Administration and defend such recommendations before the Board and before the appropriate Committees of each House of the Congress,

      ‘(E) advise the Board and the Congress of 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, Survivors, and Disability Insurance Trust Fund and the Federal Disability Insurance Trust Fund, and

      ‘(G) report in December of each year to the Board for transmittal to the Congress concerning the administrative endeavors and accomplishments of the Administration.

    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 Commissioner pursuant to this section shall be considered a reference to the Commissioner.

‘Deputy Commissioner of Social Security

    ‘(c)(1) There shall be in the Office of the Commissioner a Deputy Commissioner, who shall be appointed by the Board. The Deputy Commissioner shall be appointed for a term coextensive with the term of the Commissioner and may be removed by the Board only for cause.

    ‘(2) The Deputy Commissioner shall be compensated at the rate provided for level III of the Executive Schedule.

    ‘(3) 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 Social Security during the absence or disability of the Commissioner and, unless the Board designates another officer of the Government, in the event of a vacancy in the office of Commissioner.

‘Beneficiary Ombudsman

    ‘(d)(1) The Board shall by regulation establish in the Administration an Office of the Beneficiary Ombudsman, to be headed by a Beneficiary Ombudsman appointed by the Board.

    ‘(2) 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, 1991. 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.

    ‘(3) The duties of the Beneficiary Ombudsman are as follows:

      ‘(A) to represent 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 within the Administration’s decisionmaking process;

      ‘(B) to review the Administration’s policies and procedures for possible adverse effects on such beneficiaries;

      ‘(C) to recommend changes in policies which have caused problems for such beneficiaries;

      ‘(D) to help resolve the problems under such programs of individual beneficiaries; and

      ‘(E) to represent the views of beneficiaries in the design of forms and the issuance of instructions.

    ‘(4) 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.

    ‘(5) The annual report of the Board under section 704 shall include a description of the activities of the Beneficiary Ombudsman.

‘General Counsel

    ‘(e) 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.

‘Inspector General

    ‘(f) 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.’.

    (b) INTERIM AUTHORITY OF THE COMMISSIONER- The President shall nominate for appointment the initial members of the Social Security Board not later than 180 days after the date of the enactment of this Act. In the event that, as of the effective date of the amendment made by this Act to section 702 of the Social Security Act, all members of the Social Security Board have not been appointed, until all members of the Board have been appointed, the officer serving on the date of the enactment of this Act 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 Commissioner of Social Security under such Act (as amended by this Act).

SEC. 103. PERSONNEL; BUDGETARY MATTERS; FACILITIES AND PROCUREMENT; SEAL OF OFFICE.

    Section 703 of the Social Security Act 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 appoint, without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, such technical or professional employees as the Board considers appropriate, and such employees may be paid without regard to the provisions of chapter 51 and subchapter III of chapter 53 of such title relating to classification and General Schedule pay rates.

    ‘(3) The Board may procure the services of experts and consultants in accordance with the provisions of section 3109 of title 5, United States Code.

    ‘(4) The Director of the Office of Personnel Management shall delegate to the Board, pursuant to section 1104 of title 5, United States Code, and subject to applicable limitations under such title relating to delegations under such section, the functions relating to--

      ‘(A) recruitment and examination programs for entry level employees, and

      ‘(B) classification and standards development systems and pay ranges for those job categories identified by the Board in assuming such delegation.

    The Director of the Office of Personnel Management shall provide any assistance requested by the Board in assuming such delegation.

    ‘(5) 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 equal to 200 percent of the number of such positions 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 Reorganization Act of 1985, and the total number of such positions authorized for the Administration pursuant to such section 3133 shall not at any time be less than such number.

    ‘(6) 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)(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 Board. The entire amount of appropriations provided for the administrative costs of the Administration shall be apportioned in the time period provided in title 31, United States Code, for apportionment and shall be apportioned for the entire period of availability without restriction or deduction by the apportioning officer or employee of the Office of Management and Budget or any other entity within the executive branch of the Federal Government, except as otherwise provided in this subsection.

    ‘(2) The report submitted pursuant to section 704 shall include a section reflecting the use of budget authority provided to the Administration by quarters.

    ‘(3)(A) Authority of the Administration for automated data processing procurement and facilities construction shall be provided in the form of contract authority covering the total costs of such acquisitions, to be available until expended.

    ‘(B) Amounts necessary for the liquidation of contract authority provided pursuant to this paragraph are hereby made available from the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund to the extent that the Board, with the concurrence of the Secretary of the Treasury, determines that such amounts are not necessary to meet the current obligations for benefit payments from the Trust Funds.

    ‘(C) Funds appropriated for the Administration to be available on a contingency basis shall be apportioned only upon the occurrence of the stipulated contingency, as determined by the Board and reported to each House of the Congress.

‘Mandatory Delegations from Administrator of General Services

    ‘(c)(1) The Board shall have--

      ‘(A) all authorities permitted to be delegated under the provisions of Federal law codified under title 40 of the United States Code, relating to the acquisition, operation, and maintenance of the facilities needed for the administration of programs for which the Board is given responsibility under this Act,

      ‘(B) all authorities permitted to be delegated under section 111 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 759), relating to the lease, purchase, or maintenance of automated data processing equipment, and

      ‘(C) the authority to contract for any automated data processing equipment or services which the Board considers necessary for the efficient and effective operation of such programs.

    ‘(2) The Administrator of the General Services Administration shall provide any assistance requested by the Board in assuming the delegations required under paragraph (1).’.

‘Seal of Office

    ‘(d) 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 employed in connection with the functions transferred by this Act 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.

    (c) ABOLISHMENT OF OFFICE OF COMMISSIONER IN THE DEPARTMENT OF HEALTH AND HUMAN SERVICES- Effective upon the appointment 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.

TITLE II--MISCELLANEOUS PROVISIONS AND CONFORMING AMENDMENTS

SEC. 201. CONTRIBUTOR AND BENEFICIARY BILL OF RIGHTS.

    Title VII of the Social Security Act is further amended by adding at the end thereof the following new section:

‘CONTRIBUTOR AND BENEFICIARY BILL OF RIGHTS

‘Principles for Implementation of Act

    ‘SEC. 711. (a) The provisions of this Act should be implemented consistent with the following principles:

      ‘(1) All persons should be treated fairly and equitably by the Social Security Board and the Secretary with proper regard and protection for their rights under this Act, their constitutional rights, and their privacy.

      ‘(2) The Social Security Board and the Secretary should not discriminate against persons on account of their age, sex, race, creed, color, handicap, national origin, or economic condition.

      ‘(3) The Board and the Secretary should each maintain prompt, professional, and effective service which is accessible and responsive to the communities and persons which they serve.

‘Enforcement of Principles

    ‘(b) In carrying out their responsibilities under this Act, the Social Security Board and the Secretary, pursuant to authority otherwise available, shall take any action, including the issuance of rules, regulations, or directives, which is consistent with the provisions of this Act and which the Social Security Board or the Secretary (as the case may be) determines is necessary to ensure that the administration of this Act is based on and embodies the principles set forth in subsection (a) and that such principles are publicly displayed in each office of the Social Security Administration.’.

SEC. 202. AMENDMENTS TO TITLES II AND XVI OF THE SOCIAL SECURITY ACT.

    (a) Title II (other than section 201, section 231(c), section 226, and section 226A) and title XVI of the Social Security Act are each amended--

      (1) by striking out, wherever it appears therein, ‘Secretary of Health and Human Services’ and inserting in lieu thereof ‘Social Security Board’;

      (2) by striking out, wherever it appears therein, ‘Department of Health and Human Services’ and inserting in lieu thereof ‘Social Security Administration’;

      (3) by striking out, 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 in lieu thereof ‘Administration’; and

      (4) by striking out, 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 lieu thereof (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’.

    (b)(1) Section 201(a)(3) of such Act is amended by striking out ‘Secretary of Health and Human Services’ and inserting in lieu thereof ‘Social Security Board’.

    (2) Section 201(c) of such Act is amended--

      (A) in the first sentence, by striking out ‘shall be composed of’ and all that follows down through ‘ex officio’ and inserting in lieu thereof the following: ‘shall be composed of the members of the Social Security Board, the Secretary of the Treasury, and the Secretary of Health and Human Services, all ex officio’; and

      (B) 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.’.

    (3) Section 201(g)(1)(A) of such Act is amended--

      (A) in clause (i), by striking out ‘by him and the Secretary of Health and Human Services’ and inserting in lieu thereof ‘by him, the Social Security Board, and the Secretary of Health and Human Services’, and by striking out ‘by the Department of Health and Human Services and the Treasury Department’ and inserting in lieu thereof ‘by the Social Security Administration, the Department of Health and Human Services, and the Department of the Treasury’;

      (B) in clause (ii), by striking out ‘method prescribed by the Board of Trustees under paragraph (4)’ and inserting in lieu thereof ‘applicable method prescribed under paragraph (4)’, by striking out ‘the Secretary of Health and Human Services’ and inserting in lieu thereof ‘the Social Security Board and the Secretary of Health and Human Services’, and by striking out ‘the Department of Health and Human Services’ and inserting in lieu thereof ‘the Social Security Administration and the Department of Health and Human Services’; and

      (C) by striking out the last sentence and inserting in lieu thereof 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 Social Security Board 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 1954 other than those referred to in clause (i) of the first sentence of this subparagraph.’.

    (4) Section 201(g)(1) of such Act is further amended by striking out subparagraph (B) and inserting in lieu thereof the following new subparagraphs:

    ‘(B) After the close of each fiscal year--

      ‘(i) the Social Security Board 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 1954 (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 Social Security Board and the Secretary of Health and Human Services shall each certify to the Managing Trustee the amounts which should be transferred from each of the Trust Funds to the general fund in the Treasury and from the general fund in the Treasury to each of the Trust Funds, 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 Social Security Board 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 1954 (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) of such Act is amended, in the second sentence, by striking out ‘established and maintained by the Secretary of Health and Human Services’ and inserting in lieu thereof ‘maintained by the Social Security Board’, and by striking out ‘Secretary shall furnish’ and inserting in lieu thereof ‘Social Security Board shall furnish’.

    (6) Section 201(g)(4) of such Act is amended to read as follows:

    ‘(4) The Social Security Board shall utilize the method prescribed pursuant to this paragraph, as of immediately before the date of the enactment of the Social Security Reorganization Act of 1985, for determining the costs which should be borne by the general fund in the Treasury of carrying out the functions of the Board, specified in section 232, which relate to the administration of provisions of the Internal Revenue Code of 1954 (other than those referred to in clause (i) of the first sentence of paragraph (1)(A)). If at any time or times thereafter the Board considers such action advisable, it may modify the method of determining such costs.’.

    (7) Section 201(i)(1) of such Act is amended to read as follows:

    ‘(i)(1) The Managing Trustee may accept on behalf of the United States money gifts and bequests made unconditionally to the Federal Old-Age and Survivors Insurance Trust Fund, the Federal Disability Insurance Trust Fund, the Federal Hospital Insurance Trust Fund, or the Federal Supplementary Medical Insurance Trust Fund or to the Social Security Administration, the Department of Health and Human Services, or any part or officer thereof, for the benefit of any of such Funds or any activity financed through such Funds.’.

    (8) Subsections (j) and (k) of section 201 of such Act are each amended by striking out ‘Secretary’ each place it appears and inserting in lieu thereof ‘Social Security Board’.

    (9) Section 201(l)(3)(B)(iii)(II) of such Act is amended by striking out ‘Secretary’ and inserting in lieu thereof ‘Social Security Board’.

    (10) Section 201(m)(3) of such Act is amended by striking out ‘Secretary of Health and Human Services’ and inserting in lieu thereof ‘Social Security Board’.

    (c) Section 231(c) of such Act is amended by striking out ‘Secretary determines’ and inserting in lieu thereof ‘Social Security Board and the Secretary jointly determine’.

SEC. 203. OTHER AMENDMENTS.

    (a) Section 411 of the Social Security Act is amended--

      (1) in subsection (a), by striking out ‘Secretary’ and inserting in lieu thereof ‘Social Security Board, at the request of the Secretary,’; and

      (2) in subsection (b), by striking out ‘Secretary’ each place it appears and inserting in lieu thereof ‘Social Security Board’.

    (b)(1) Section 704 of such Act is amended to read as follows:

‘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) Section 709(b)(2) of such Act is amended by striking out ‘(as estimated by the Secretary)’ and inserting in lieu thereof ‘, as estimated by the Social Security Board or the Secretary (whichever administers the program involved),’.

    (3) Title VII of such Act is further amended by adding at the end thereof the following new section:

‘DUTIES OF SECRETARY

    ‘SEC. 712. 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.’.

    (c)(1) Section 1101(a) of such Act is amended by adding at the end thereof the following new paragraph:

      ‘(10) The term ‘Administration’ means the Social Security Administration.’.

    (2) Section 1106(a) of such Act is amended--

      (A) by inserting ‘(1)’ after ‘(a)’;

      (B) by striking out ‘Department of Health and Human Services’ and inserting in lieu thereof ‘applicable agency’;

      (C) by striking out ‘Secretary’ and inserting in lieu thereof ‘head of the applicable agency’; and

      (D) by adding at the end thereof the following new paragraph:

    ‘(2) For purposes of this subsection and subsection (b), the term ‘applicable agency’ means--

      ‘(A) the Social Security Administration, with respect to matter transmitted to or obtained by such Administration or matter disclosed by such Administration, or

      ‘(B) the Department of Health and Human Services, with respect to matter transmitted to or obtained by such Department or matter disclosed by such Department.’.

    (3) Section 1106(b) of such Act is amended--

      (A) by striking out ‘Secretary’ and inserting in lieu thereof ‘head of the applicable agency’; and

      (B) by striking out ‘Department of Health and Human Services’ and inserting in lieu thereof ‘applicable agency’.

    (4) Section 1106(c) of such Act is amended--

      (A) by striking out ‘the Secretary’ the first place it appears and inserting in lieu thereof ‘the Social Security Board or the Secretary’; and

      (B) by striking out ‘the Secretary’ each subsequent place it appears and inserting in lieu thereof ‘such Board or Secretary’.

    (5) Section 1107(b) of such Act is amended by striking out ‘the Secretary of Health and Human Services’ and inserting in lieu thereof ‘the Social Security Board or the Secretary’.

    (6) Section 1110 of such Act is amended--

      (A) by striking out ‘Secretary’ each place it appears and inserting in lieu thereof ‘Social Security Board’; and

      (B) by striking out ‘he’, ‘his’, ‘him’, and ‘himself’ each place they appear (except in subsection (b)(2)(A)) and inserting in lieu thereof ‘the Board’, ‘the Board’s’, ‘the Board’, and ‘itself’, respectively.

    (7) Section 1127 of such Act is amended by striking out ‘Secretary’ and inserting in lieu thereof ‘Social Security Board’.

    (8) Section 1128(e) of such Act is amended by inserting after ‘section 205(g)’ the following: ‘, except that, in so applying such sections, any reference therein to the Social Security Board shall be considered a reference to the Secretary’.

    (9) Section 1131 of such Act is amended--

      (A) by striking out ‘Secretary’ each place it appears and inserting in lieu thereof ‘Social Security Board’;

      (B) in subsection (a)(1)(A), by adding ‘or’ at the end thereof;

      (C) in subsection (a)(1)(B), by striking out ‘or’ at the end thereof;

      (D) by striking out 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 out ‘he’ in the matter in subsection (a) following paragraph (3) (as so redesignated) and inserting in lieu thereof ‘the Social Security Board’.

    (10) Section 1155 of such Act is amended by striking out ‘(to the same extent as is provided in section 205(b))’ and inserting in lieu thereof ‘(to the same extent as beneficiaries under title II are entitled to a hearing by the Social Security Board under section 205(b))’.

    (d)(1) Subsections (a) and (f) of section 1817 of such Act are amended by striking out ‘Secretary of Health and Human Services’ each place it appears and inserting in lieu thereof ‘Social Security Board’.

    (2) Section 1840(a) of such Act is amended--

      (A) in paragraph (1), by striking out ‘Secretary’ and inserting in lieu thereof ‘Social Security Board’, and by adding at the end thereof the following new sentence: ‘Such regulations shall be prescribed only after consultation with the Secretary.’; and

      (B) in paragraph (2), by striking out ‘Secretary of Health and Human Services’ and inserting in lieu thereof ‘Social Security Board’.

    (3) Section 1872 of such Act 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 Social Security Board shall be considered a reference to the Secretary’.

    (4) Sections 1862(d)(3), 1869(b)(1), and 1869(c) of such Act and the last sentence of section 1876(c)(5)(B) of such Act are amended by inserting after ‘section 205(g)’ the following: ‘, except that, in so applying such sections, any reference therein to the Social Security Board shall be considered a reference to the Secretary’.

    (e) Section 1910(c)(2) of such Act is amended, in the first sentence, by inserting after ‘section 205(g)’ the following: ‘, except that, in so applying such sections, any reference therein to the Social Security Board shall be considered a reference to the Secretary’.

    (f) Title 5, United States Code, is amended--

      (1) by adding at the end of section 5313 the following new items:

      ‘Members, Social Security Board (3).

      ‘Commissioner of Social Security.’;

      (2) by adding at the end of section 5314 the following new item:

      ‘Deputy Commissioner of Social Security.’;

      (3) by adding at the end of section 5315 the following new items:

      ‘General Counsel, Social Security Administration.

      ‘Additional officers, Social Security Administration (6).’;

      (4) by adding at the end of section 5316 the following new items:

      ‘Inspector General, Social Security Administration.

      ‘Additional officers, Social Security Administration (6).’; and

      (5) by striking out ‘Secretary of Health and Human Services’ each place it appears in section 8141 and inserting in lieu thereof ‘Social Security Board’.

    (g) The Food Stamp Act of 1977 is amended--

      (1) in section 6 (7 U.S.C. 2015), by striking out ‘Secretary of Health and Human Services’ and inserting in lieu thereof ‘Social Security Board’; and

      (2) in section 17(d) (7 U.S.C. 2026(d)), by inserting after ‘Services’ the following: ‘and the Social Security Board’.

    (h) Section 707 of title 14, United States Code, is amended by striking out ‘Secretary of Health and Human Services’ each place it appears and inserting in lieu thereof ‘Social Security Board’.

    (i)(1) Subsections (c)(1), (c)(2)(E), (g)(1), (g)(3)(A), and (g)(3)(B) of section 1402 of the Internal Revenue Code of 1954 are amended by striking out ‘Secretary of Health and Human Services’ each place it appears and inserting in lieu thereof ‘Social Security Board’.

    (2) Section 3121(b)(10)(B) of such Code is amended by striking out each place it appears ‘Secretary of Health and Human Services’ and inserting in lieu thereof ‘Social Security Board’.

    (3) Subsections (d) and (f) of section 6057 of such Code are amended by striking out ‘Secretary of Health and Human Services’ each place it appears and inserting in lieu thereof ‘Social Security Board’.

    (4) Section 6103(l)(5) of such Code is amended--

      (A) by striking out ‘Department of Health and Human Services’ and inserting in lieu thereof ‘Social Security Administration’; and

      (B) by striking out ‘Secretary of Health and Human Services’ and inserting in lieu thereof ‘Social Security Board’.

    (5) Section 6511(d)(5) of such Code is amended by striking out ‘Secretary of Health and Human Services’ and inserting in lieu thereof ‘Social Security Board’.

    (j) Section 3005 of title 38, United States Code, is amended by striking out ‘Secretary of Health and Human Services’ and ‘Secretary’ each place they appear and inserting in lieu thereof ‘Social Security Board’.

    (k) The Inspector General Act of 1978 (5 U.S.C. App.) is amended--

      (1) in section 2(1), by striking out ‘and the Veterans’ Administration’ and inserting in lieu thereof ‘the Veterans’ Administration, and the Social Security Administration’;

      (2) in section 9(a)(1), by striking out ‘and’ at the end of subparagraph (M), and by adding at the end thereof the following new subparagraph:

        ‘(O) of the Social Security Administration (to the extent provided in the Social Security Reorganization Act of 1985), 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’;

      (3) in section 11(1), by striking out ‘or’ after ‘Transportation’ and inserting in lieu thereof a comma, and by inserting after ‘Affairs,’ the following: ‘or the Social Security Board,’; and

      (4) in section 11(2), by striking out ‘or’ after ‘Transportation’, and by inserting after ‘Veterans’ Administration,’ the following: ‘or the Social Security Administration,’.

SEC. 204. 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 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 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 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.

TITLE III--EFFECTIVE DATES AND TRANSITIONAL RULES

SEC. 301. EFFECTIVE DATES.

    (a) AMENDMENTS IN TITLE I- (1) Sections 101, 102(a), 103, and 104 of this Act shall take effect 180 days after the date of the enactment of this Act.

    (2) Section 102(b) of this Act shall take effect on the date of the enactment of this Act.

    (b) AMENDMENTS IN TITLE II- Title II of this Act shall take effect 180 days after the date of the enactment of this Act, except that subsections (f)(1), (f)(2), (f)(3), (f)(4), and (k) of section 206 shall take effect on the date of the enactment of this Act.

SEC. 302. TRANSITIONAL RULES.

    (a) INTERIM AUTHORITY FOR APPOINTMENT AND COMPENSATION- At any time 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 title I of this Act) may be nominated and appointed, as provided in such section, and

      (2) the Social Security Board, upon nomination and appointment 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 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 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, 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 the effective date specified in section 301(a)(1),

    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 Board.

    (c) CONTINUATION OF PROCEEDINGS- The provisions of this Act (including the amendments made thereby) shall not affect any proceeding pending at the time this Act takes effect before the Secretary of Health and Human Services 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 the effective date specified in section 301(a)(1); 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 when this section takes effect, 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 and actions had been taken by the Secretary of Health and Human Services in the exercise of such functions immediately preceding the effective date of this Act. 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(b) of this Act, 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 such section 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 initial appointments to such Board had been made.