H.R. 861 — Social Security Reorganization Act of 1989

 
HR 861 IH
101st CONGRESS
1st Session
 H. R. 861
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
February 6, 1989
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 1989'.
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, 1993,
  `(II) one shall be appointed for a term ending January 31, 1995, and
  `(III) one shall be appointed for a term ending January 31, 1997,
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, 1991. 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
  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.
Social Security Reorganization Act of 1989

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