article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Notch Fairness Act of 1996''. SEC. 2. NEW GUARANTEED MINIMUM PRIMARY INSURANCE AMOUNT WHERE ELIGIBILITY ARISES DURING TRANSITIONAL PERIOD. (a) In General.--Section 215(a) of the Social Security Act is amended-- (1) in paragraph (4)(B), by inserting ``(with or without the application of paragraph (8))'' after ``would be made'', and by striking ``1984'' in clause (i) and inserting ``1989''; and (2) by adding at the end the following: ``(8)(A) In the case of an individual described in paragraph (4)(B) (subject to subparagraph (F) of this paragraph), the amount of the individual's primary insurance amount as computed or recomputed under paragraph (1) shall be deemed equal to the sum of-- ``(i) such amount, and ``(ii) the applicable transitional increase amount (if any). ``(B) For purposes of subparagraph (A)(ii), the term `applicable transitional increase amount' means, in the case of any individual, the product derived by multiplying-- ``(i) the excess under former law, by ``(ii) the applicable percentage in relation to the year in which the individual becomes eligible for old-age insurance benefits, as determined by the following table: ``If the individual becomes eligible for The applicable such benefits in: percentage is: 1979............................... 55 percent 1980............................... 45 percent 1981............................... 35 percent 1982............................... 32 percent 1983............................... 25 percent 1984............................... 20 percent 1985............................... 16 percent 1986............................... 10 percent 1987............................... 3 percent 1988............................... 5 percent. ``(C) For purposes of subparagraph (B), the term `excess under former law' means, in the case of any individual, the excess of-- ``(i) the applicable former law primary insurance amount, over ``(ii) the amount which would be such individual's primary insurance amount if computed or recomputed under this section without regard to this paragraph and paragraphs (4), (5), and (6). ``(D) For purposes of subparagraph (C)(i), the term `applicable former law primary insurance amount' means, in the case of any individual, the amount which would be such individual's primary insurance amount if it were-- ``(i) computed or recomputed (pursuant to paragraph (4)(B)(i)) under section 215(a) as in effect in December 1978, or ``(ii) computed or recomputed (pursuant to paragraph (4)(B)(ii)) as provided by subsection (d), (as applicable) and modified as provided by subparagraph (E). ``(E) In determining the amount which would be an individual's primary insurance amount as provided in subparagraph (D)-- ``(i) subsection (b)(4) shall not apply; ``(ii) section 215(b) as in effect in December 1978 shall apply, except that section 215(b)(2)(C) (as then in effect) shall be deemed to provide that an individual's `computation base years' may include only calendar years in the period after 1950 (or 1936 if applicable) and ending with the calendar year in which such individual attains age 61, plus the 3 calendar years after such period for which the total of such individual's wages and self-employment income is the largest; and ``(iii) subdivision (I) in the last sentence of paragraph (4) shall be applied as though the words `without regard to any increases in that table' in such subdivision read `including any increases in that table'. ``(F) This paragraph shall apply in the case of any individual only if such application results in a primary insurance amount for such individual that is greater than it would be if computed or recomputed under paragraph (4)(B) without regard to this paragraph.''. (b) Effective Date and Related Rules.-- (1) Applicability of amendments.-- (A) In general.--Except as provided in paragraph (2), the amendments made by this Act shall be effective as though they had been included or reflected in section 201 of the Social Security Amendments of 1977. (B) Prospective applicability.--No monthly benefit or primary insurance amount under title II of the Social Security Act shall be increased by reason of such amendments for any month before April 1996. (2) Recomputation to reflect benefit increases.--In any case in which an individual is entitled to monthly insurance benefits under title II of the Social Security Act for March 1995, if such benefits are based on a primary insurance amount computed-- (A) under section 215 of such Act as in effect (by reason of the Social Security Amendments of 1977) after December 1978, or (B) under section 215 of such Act as in effect prior to January 1979 by reason of subsection (a)(4)(B) of such section (as amended by the Social Security Amendments of 1977), the Commissioner of Social Security (notwithstanding section 215(f)(1) of the Social Security Act) shall recompute such primary insurance amount so as to take into account the amendments made by this Act. SEC. 3. ENTITLEMENT OF STEPCHILDREN TO CHILD'S INSURANCE BENEFITS BASED ON ACTUAL DEPENDENCY ON STEPPARENT SUPPORT. (a) Requirement of Actual Dependency for Future Entitlements.-- (1) In general.--Section 202(d)(4) of the Social Security Act (42 U.S.C. 402(d)(4)) is amended by striking ``was living with or''. (2) Effective date.--The amendment made by paragraph (1) shall apply with respect to benefits of individuals who become entitled to such benefits for months after the third month following the month in which this Act is enacted. (b) Termination of Child's Insurance Benefits Based on Work Record of Stepparent Upon Natural Parent's Divorce From Stepparent.-- (1) In general.--Section 202(d)(1) of the Social Security Act (42 U.S.C. 402(d)(1)) is amended-- (A) by striking ``or'' at the end of clause (F); (B) by striking the period at the end of clause (G) and inserting ``; or''; and (C) by inserting after clause (G) the following new clause: ``(H) if the benefits under this subsection are based on the wages and self-employment income of a stepparent who is subsequently divorced from such child's natural parent, the sixth month after the month in which the Commissioner of Social Security receives formal notification of such divorce.''. (2) Effective date.--The amendments made by this subsection shall apply with respect to notifications of divorces received by the Commissioner of Social Security on or after the date of the enactment of this Act. SEC. 4. DENIAL OF DISABILITY BENEFITS TO DRUG ADDICTS AND ALCOHOLICS. (a) Amendments Relating to Title II Disability Benefits.-- (1) In general.--Section 223(d)(2) of the Social Security Act (42 U.S.C. 423(d)(2)) is amended by adding at the end the following: ``(C) An individual shall not be considered to be disabled for purposes of this title if alcoholism or drug addiction would (but for this subparagraph) be a contributing factor material to the Commissioner's determination that the individual is disabled.''. (2) Representative payee requirements.-- (A) Section 205(j)(1)(B) of such Act (42 U.S.C. 405(j)(1)(B)) is amended to read as follows: ``(B) In the case of an individual entitled to benefits based on disability, the payment of such benefits shall be made to a representative payee if the Commissioner of Social Security determines that such payment would serve the interest of the individual because the individual also has an alcoholism or drug addiction condition (as determined by the Commissioner) that prevents the individual from managing such benefits.''. (B) Section 205(j)(2)(C)(v) of such Act (42 U.S.C. 405(j)(2)(C)(v)) is amended by striking ``entitled to benefits'' and all that follows through ``under a disability'' and inserting ``described in paragraph (1)(B)''. (C) Section 205(j)(2)(D)(ii)(II) of such Act (42 U.S.C. 405(j)(2)(D)(ii)(II)) is amended by striking all that follows ``15 years, or'' and inserting ``described in paragraph (1)(B).''. (D) Section 205(j)(4)(A)(ii)(II) (42 U.S.C. 405(j)(4)(A)(ii)(II)) is amended by striking ``entitled to benefits'' and all that follows through ``under a disability'' and inserting ``described in paragraph (1)(B)''. (3) Treatment referrals for individuals with an alcoholism or drug addiction condition.--Section 222 of such Act (42 U.S.C. 422) is amended by adding at the end the following new subsection: ``Treatment Referrals for Individuals with an Alcoholism or Drug Addiction Condition ``(e) In the case of any individual whose benefits under this title are paid to a representative payee pursuant to section 205(j)(1)(B), the Commissioner of Social Security shall refer such individual to the appropriate State agency administering the State plan for substance abuse treatment services approved under subpart II of part B of title XIX of the Public Health Service Act (42 U.S.C. 300x-21 et seq.).''. (4) Conforming amendment.--Subsection (c) of section 225 of such Act (42 U.S.C. 425(c)) is repealed. (5) Effective dates.-- (A) The amendments made by paragraphs (1) and (4) shall apply with respect to monthly insurance benefits under title II of the Social Security Act based on disability for months beginning after the date of the enactment of this Act, except that, in the case of individuals who are entitled to such benefits for the month in which this Act is enacted, such amendments shall apply only with respect to such benefits for months beginning on or after January 1, 1997. (B) The amendments made by paragraphs (2) and (3) shall apply with respect to benefits for which applications are filed on or after the date of the enactment of this Act. (C) If an individual who is entitled to monthly insurance benefits under title II of the Social Security Act based on disability for the month in which this Act is enacted and whose entitlement to such benefits would terminate by reason of the amendments made by this subsection reapplies for benefits under title II of such Act (as amended by this Act) based on disability within 120 days after the date of the enactment of this Act, the Commissioner of Social Security shall, not later than January 1, 1997, complete the entitlement redetermination with respect to such individual pursuant to the procedures of such title. (b) Amendments Relating to SSI Benefits.-- (1) In general.--Section 1614(a)(3) of the Social Security Act (42 U.S.C. 1382c(a)(3)) is amended by adding at the end the following: ``(I) Notwithstanding subparagraph (A), an individual shall not be considered to be disabled for purposes of this title if alcoholism or drug addiction would (but for this subparagraph) be a contributing factor material to the Commissioner's determination that the individual is disabled.''. (2) Representative payee requirements.-- (A) Section 1631(a)(2)(A)(ii)(II) of such Act (42 U.S.C. 1383(a)(2)(A)(ii)(II)) is amended to read as follows: ``(II) In the case of an individual eligible for benefits under this title by reason of disability, the payment of such benefits shall be made to a representative payee if the Commissioner of Social Security determines that such payment would serve the interest of the individual because the individual also has an alcoholism or drug addiction condition (as determined by the Commissioner) that prevents the individual from managing such benefits.''. (B) Section 1631(a)(2)(B)(vii) of such Act (42 U.S.C. 1383(a)(2)(B)(vii)) is amended by striking ``eligible for benefits'' and all that follows through ``is disabled'' and inserting ``described in subparagraph (A)(ii)(II)''. (C) Section 1631(a)(2)(B)(ix)(II) of such Act (42 U.S.C. 1383(a)(2)(B)(ix)(II)) is amended by striking all that follows ``15 years, or'' and inserting ``described in subparagraph (A)(ii)(II).''. (D) Section 1631(a)(2)(D)(i)(II) of such Act (42 U.S.C. 1383(a)(2)(D)(i)(II)) is amended by striking ``eligible for benefits'' and all that follows through ``is disabled'' and inserting ``described in subparagraph (A)(ii)(II)''. (3) Treatment services for individuals with a substance abuse condition.--Title XVI of such Act (42 U.S.C. 1381 et seq.) is amended by adding at the end the following new section: ``treatment services for individuals with a substance abuse condition ``Sec. 1636. In the case of any individual whose benefits under this title are paid to a representative payee pursuant to section 1631(a)(2)(A)(ii)(II), the Commissioner of Social Security shall refer such individual to the appropriate State agency administering the State plan for substance abuse treatment services approved under subpart II of part B of title XIX of the Public Health Service Act (42 U.S.C. 300x-21 et seq.).''. (4) Conforming amendments.-- (A) Section 1611(e) of such Act (42 U.S.C. 1382(e)) is amended by striking paragraph (3). (B) Section 1634 of such Act (42 U.S.C. 1383c) is amended by striking subsection (e). (5) Effective dates.-- (A) The amendments made by paragraphs (1) and (4) shall apply with respect to supplemental security income benefits under title XVI of the Social Security Act based on disability for months beginning after the date of the enactment of this Act, except that, in the case of individuals who are eligible for such benefits for the month in which this Act is enacted, such amendments shall apply only with respect to such benefits for months beginning on or after January 1, 1997. (B) The amendments made by paragraphs (2) and (3) shall apply with respect to supplemental security income benefits under title XVI of the Social Security Act for which applications are filed on or after the date of the enactment of this Act. (C) If an individual who is eligible for supplemental security income benefits under title XVI of the Social Security Act for the month in which this Act is enacted and whose eligibility for such benefits would terminate by reason of the amendments made by this subsection reapplies for supplemental security income benefits under title XVI of such Act (as amended by this Act) within 120 days after the date of the enactment of this Act, the Commissioner of Social Security shall, not later than January 1, 1997, complete the eligibility redetermination with respect to such individual pursuant to the procedures of such title. (D) For purposes of this paragraph, the phrase ``supplemental security income benefits under title XVI of the Social Security Act'' includes supplementary payments pursuant to an agreement for Federal administration under section 1616(a) of the Social Security Act and payments pursuant to an agreement entered into under section 212(b) of Public Law 93-66. (c) Conforming Amendment.--Section 201(c) of the Social Security Independence and Program Improvements Act of 1994 (42 U.S.C. 425 note) is repealed. (d) Supplemental Funding for Alcohol and Substance Abuse Treatment Programs.-- (1) In general.--Out of any money in the Treasury not otherwise appropriated, there are hereby appropriated to supplement State and Tribal programs funded under section 1933 of the Public Health Service Act (42 U.S.C. 300x-33), $100,000,000 for each of the fiscal years 1997 and 1998. (2) Additional funds.--Amounts appropriated under paragraph (1) shall be in addition to any funds otherwise appropriated for allotments under section 1933 of the Public Health Service Act (42 U.S.C. 300x-33) and shall be allocated pursuant to such section 1933. (3) Use of funds.--A State or Tribal government receiving an allotment under this subsection shall consider as priorities, for purposes of expending funds allotted under this subsection, activities relating to the treatment of the abuse of alcohol and other drugs. HR 2930 IH----2
summary: Notch Fairness Act of 1996 - Amends title II (Old Age, Survivors and Disability Insurance) (OASDI) of the Social Security Act to revise the formula for the computation of minimum old age insurance benefits for individuals who reached age 65 in or after 1979 and to whom applies the 15-year transition period for the changes in benefit computation rules enacted in the Social Security Amendments of 1977. Sets forth a schedule of additional benefit increases for such beneficiaries (and related beneficiaries), with percentages declining from 55 percent to five percent and keyed to the year an individual became eligible for such benefits between 1979 and 1988. Requires actual dependency of a stepchild in order to receive a child's insurance benefit under OASDI. Repeals the benefit eligibility of a stepchild living with the stepparent but not dependent on the stepparent for at least half of his or her support. Terminates a child's insurance benefit based upon the work income of a stepparent six months after the month in which the Commissioner of Social Security receives formal notification of the divorce of such stepparent from the natural parent of the child. Prohibits payment of OASDI disability benefits if alcoholism or drug addiction would be a contributing factor material to the Commissioner's determination that such individual is disabled. Requires the payment of disability benefits to a representative payee if the Commissioner determines that a disabled individual also has an alcoholism or drug addition condition that prevents the individual from managing such benefits. Directs the Commissioner to refer an individual with such a condition to the appropriate State agency administering the plan for substance abuse treatment services under the Public Health Service Act. Amends title XVI (Supplemental Security Income) (SSI) of the Social Security Act to make the same requirements with respect to SSI beneficiaries. Appropriates funds for FY 1997 and 1998 for supplemental funding of State and tribal alcohol and substance abuse treatment programs under the Public Health Service Act. Requires State or tribal governments receiving such funds to consider as a priority in their expenditure those activities relating to the treatment of the abuse of alcohol and other drugs.