S. 1560 (103rd): Social Security Administration Independence Act of 1994

103rd Congress, 1993–1994. Text as of Mar 02, 1994 (Passed the Senate (Engrossed)).

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S 1560 ES

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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