January 12, 1983
I am today signing H.R. 7093. This bill enhances the quality and fairness of the social security
disability insurance system. It also helps us to maintain the integrity of the disability rolls while
protecting the legitimate rights of both beneficiaries and contributors.
When this administration took office, reports by the General Accounting Office and others
indicated that thousands of people who were not disabled were drawing social security disability
benefits. Several billion dollars a year were being spent to support people who were not, in fact,
disabled. The previous administration and the 96th Congress had agreed that the Department of
Health and Human Services should correct this situation by implementing measures passed by the
Congress in 1980. These measures provided for reviewing the status of those receiving social
security disability benefits.
Over the past year and a half, the Department of Health and Human Services has improved the
administrative processes for determining who should receive disability benefits. To help
beneficiaries understand the review process, the Department now begins each continuing disability
investigation with an interview in local offices.
With the signing of this bill today, I am pleased to add some useful statutory changes to the
administrative initiatives that have already been taken. H.R. 7093 requires a face-to-face hearing
as the first step in the appeals process. Such a hearing gives the individual a personal opportunity
to present all of the evidence concerning his or her disability. This should make the process more
fair for beneficiaries and provide an additional source of information for those responsible for
administering the program. As an added safety measure and to avoid financial hardship for those
whose benefits may be mistakenly terminated, this bill permits the continued payment of disability
benefits during the appeals process.
H.R. 7093 represents a welcome step by the Congress towards improving the disability appeals
process.
In addition, this bill reduces from 30 percent to 10 percent the rate of Virgin Islands tax imposed
on certain payments of Virgin Islands source income to U.S. corporations, citizens, and resident
aliens. The lowering of the tax rate will significantly encourage U.S. investment in the Virgin
Islands and will give the Virgin Islands parity with Guam and the Northern Mariana Islands.
Note: As enacted, H.R. 7093 is Public Law 97 - 455, approved January 12.