text: 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
target: 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.
feat_title: Notch Fairness Act of 1996