II

106TH CONGRESS

1ST SESSION S. 331

To amend the Social Security Act to expand the availability of health care

coverage for working individuals with disabilities, to establish a Ticket

to Work and Self-Sufficiency Program in the Social Security Administration to provide such individuals with meaningful opportunities to work,

and for other purposes.

IN THE SENATE OF THE UNITED STATES

JANUARY 28, 1999

Mr. JEFFORDS (for himself, Mr. KENNEDY, Mr. ROTH, Mr. MOYNIHAN, Mr.

CHAFEE, Mr. GRASSLEY, Mr. HATCH, Mr. MURKOWSKI, Mr. BREAUX,

Mr. GRAHAM, Mr. KERREY, Mr. ROBB, Mr. ROCKEFELLER, Mr. BINGAMAN, Mrs. BOXER, Mr. CLELAND, Ms. COLLINS, Mr. DASCHLE, Mr.

DEWINE, Mr. DODD, Mr. DURBIN, Mr. ENZI, Mrs. FEINSTEIN, Mr.

GRAMS, Mr. HARKIN, Mr. HOLLINGS, Mr. HUTCHINSON, Mr. INOUYE,

Mr. JOHNSON, Mr. KERRY, Ms. MIKULSKI, Mrs. MURRAY, Mr. REED,

Mr. REID, Mr. SARBANES, Ms. SNOWE, Mr. STEVENS, Mr. TORRICELLI,

and Mr. WELLSTONE) introduced the following bill; which was read twice

and referred to the Committee on Finance

A BILL

To amend the Social Security Act to expand the availability

of health care coverage for working individuals with disabilities, to establish a Ticket to Work and Self-Sufficiency Program in the Social Security Administration

to provide such individuals with meaningful opportunities

to work, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

2 (a) SHORT TITLE.—This Act may be cited as the

3 ‘‘Work Incentives Improvement Act of 1999’’.

4 (b) TABLE OF CONTENTS.—The table of contents of

5 this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Findings and purposes.

TITLE I—EXPANDED AVAILABILITY OF HEALTH CARE SERVICES

Sec. 101. Expanding State options under medicaid for workers with disabilities.

Sec. 102. Continuation of medicare coverage for working individuals with disabilities.

Sec. 103. Grants to develop and establish State infrastructures to support

working individuals with disabilities.

Sec. 104. Demonstration of coverage of workers with potentially severe disabilities.

TITLE II—TICKET TO WORK AND SELF-SUFFICIENCY AND

RELATED PROVISIONS

Subtitle A—Ticket to Work and Self-Sufficiency

Sec. 201. Establishment of the Ticket to Work and Self-Sufficiency Program.

Sec. 202. Work Incentives Advisory Panel.

Subtitle B—Elimination of Work Disincentives

Sec. 211. Prohibition on using work activity as a basis for review of an individual’s disabled status.

Sec. 212. Expedited eligibility determinations for applications of former longterm beneficiaries that completed an extended period of eligibility.

Subtitle C—Work Incentives Planning, Assistance, and Outreach

Sec. 221. Work incentives outreach program.

Sec. 222. State grants for work incentives assistance to disabled beneficiaries.

TITLE III—DEMONSTRATION PROJECTS AND STUDIES

Sec. 301. Extension of disability insurance program demonstration project authority.

Sec. 302. Demonstration projects providing for reductions in disability insurance benefits based on earnings.

Sec. 303. Sense of Congress regarding additional demonstration projects.

Sec. 304. Studies and reports.

TITLE IV—TECHNICAL AMENDMENTS

Sec. 401. Technical amendments relating to drug addicts and alcoholics.

Sec. 402. Treatment of prisoners.
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Sec. 403. Revocation by members of the clergy of exemption from Social Security coverage.

Sec. 404. Additional technical amendment relating to cooperative research or

demonstration projects under titles II and XVI.

Sec. 405. Authorization for State to permit annual wage reports.

1 SEC. 2. FINDINGS AND PURPOSES.

2 (a) FINDINGS.—Congress makes the following find3 ings:

4 (1) Health care is important to all Americans.

5 (2) Health care is particularly important to in6 dividuals with disabilities and special health care

7 needs who often cannot afford the insurance avail8 able to them through the private market, are unin9 surable by the plans available in the private sector,

10 and are at great risk of incurring very high and eco11 nomically devastating health care costs.

12 (3) Americans with significant disabilities often

13 are unable to obtain health care insurance that pro14 vides coverage of the services and supports that en15 able them to live independently and enter or rejoin

16 the workforce. Personal assistance services (such as

17 attendant services, personal assistance with trans18 portation to and from work, reader services, job

19 coaches, and related assistance) remove many of the

20 barriers between significant disability and work.

21 Coverage for such services, as well as for prescrip22 tion drugs, durable medical equipment, and basic

23 health care are powerful and proven tools for indi-
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1 viduals with significant disabilities to obtain and re2 tain employment.

3 (4) For individuals with disabilities, the fear of

4 losing health care and related services is one of the

5 greatest barriers keeping the individuals from maxi6 mizing their employment, earning potential, and

7 independence.

8 (5) Individuals with disabilities who are bene9 ficiaries under title II or XVI of the Social Security

10 Act (42 U.S.C. 401 et seq., 1381 et seq.) risk losing

11 medicare or medicaid coverage that is linked to their

12 cash benefits, a risk that is an equal, or greater,

13 work disincentive than the loss of cash benefits asso14 ciated with working.

(6) Currently, less than 1 15 ⁄2 of 1 percent of so16 cial security disability insurance and supplemental

17 security income beneficiaries cease to receive benefits

18 as a result of employment.

19 (7) Beneficiaries have cited the lack of adequate

20 employment training and placement services as an

21 additional barrier to employment.

(8) If an additional 1 22 ⁄2 of 1 percent of the cur23 rent social security disability insurance (DI) and

24 supplemental security income (SSI) recipients were

25 to cease receiving benefits as a result of employ-
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1 ment, the savings to the Social Security Trust

2 Funds in cash assistance would total

3 $3,500,000,000 over the worklife of the individuals.

4 (b) PURPOSES.—The purposes of this Act are as fol5 lows:

6 (1) To provide health care and employment

7 preparation and placement services to individuals

8 with disabilities that will enable those individuals to

9 reduce their dependency on cash benefit programs.

10 (2) To encourage States to adopt the option of

11 allowing individuals with disabilities to purchase

12 medicaid coverage that is necessary to enable such

13 individuals to maintain employment.

14 (3) To provide individuals with disabilities the

15 option of maintaining medicare coverage while work16 ing.

17 (4) To establish a return to work ticket pro18 gram that will allow individuals with disabilities to

19 seek the services necessary to obtain and retain em20 ployment and reduce their dependency on cash bene21 fit programs.
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1 TITLE I—EXPANDED AVAILABIL2 ITY OF HEALTH CARE SERV3 ICES

4 SEC. 101. EXPANDING STATE OPTIONS UNDER MEDICAID

5 FOR WORKERS WITH DISABILITIES.

6 (a) STATE OPTION TO ELIMINATE INCOME, ASSETS,

7 AND RESOURCE LIMITATIONS FOR WORKERS WITH DIS8 ABILITIES BUYING INTO MEDICAID.—Section

9 1902(a)(10)(A)(ii) of the Social Security Act (42 U.S.C.

10 1396a(a)(10)(A)(ii)) is amended—

11 (1) in subclause (XIII), by striking ‘‘or’’ at the

12 end;

13 (2) in subclause (XIV), by adding ‘‘or’’ at the

14 end; and

15 (3) by adding at the end the following:

16 ‘‘(XV) who, but for earnings in

17 excess of the limit established under

18 section 1905(q)(2)(B), and subject to

19 limitations on assets, resources, or un20 earned income that may be set by the

21 State, would be considered to be re22 ceiving supplemental security income

23 (subject, notwithstanding section

24 1916, to payment of premiums or

25 other cost-sharing charges (set on a
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1 sliding scale based on income that the

2 State may determine and that may re3 quire an individual with income that

4 exceeds 250 percent of the income of5 ficial poverty line (as defined by the

6 Office of Management and Budget,

7 and revised annually in accordance

8 with section 673(2) of the Omnibus

9 Budget Reconciliation Act of 1981)

10 applicable to a family of the size in11 volved to pay an amount equal to 100

12 percent of the premium cost for pro13 viding medical assistance to the indi14 vidual), so long as any such premiums

15 or other cost-sharing charges are the

16 same as any premiums or other cost17 sharing charges imposed for individ18 uals described in subclause (XVI));’’.

19 (b) STATE OPTION TO EXPAND OPPORTUNITIES FOR

20 WORKERS WITH DISABILITIES TO BUY INTO MEDIC21 AID.—

22 (1) ELIGIBILITY.—Section 1902(a)(10)(A)(ii)

23 of the Social Security Act (42 U.S.C.

24 1396a(a)(10)(A)(ii)), as amended by subsection (a),

25 is amended—
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1 (A) in subclause (XIV), by striking ‘‘or’’ at

2 the end;

3 (B) in subclause (XV), by adding ‘‘or’’ at

4 the end; and

5 (C) by adding at the end the following:

6 ‘‘(XVI) who are working individ7 uals with disabilities described in sec8 tion 1905(v) (subject, notwithstanding

9 section 1916, to payment of premiums

10 or other cost-sharing charges (set on

11 a sliding scale based on income) that

12 the State may determine so long as

13 any such premiums or other cost-shar14 ing charges are the same as any pre15 miums or other cost-sharing charges

16 imposed for individuals described in

17 subclause (XV)), but only if the State

18 provides medical assistance to individ19 uals described in subclause (XV);’’.

20 (2) DEFINITION OF WORKING INDIVIDUALS

21 WITH DISABILITIES.—Section 1905 of the Social Se22 curity Act (42 U.S.C. 1396d) is amended by adding

23 at the end the following:

24 ‘‘(v)(1) The term ‘working individuals with disabil25 ities’ means individuals ages 16 through 64 who—
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1 ‘‘(A) by reason of medical improvement, cease

2 to be eligible for benefits under section 223(d) or

3 1614(a)(3) at the time of a regularly scheduled con4 tinuing disability review but who continue to have a

5 severe medically determinable impairment; and

6 ‘‘(B) are employed.

7 ‘‘(2) An individual is considered to be ‘employed’ if

8 the individual—

9 ‘‘(A) is earning at least the applicable minimum

10 wage requirement under section 6 of the Fair Labor

11 Standards Act (29 U.S.C. 206) and working at least

12 40 hours per month; or

13 ‘‘(B) is engaged in a work effort that meets

14 substantial and reasonable threshold criteria for

15 hours of work, wages, or other measures, as defined

16 by the State and approved by the Secretary.’’.

17 (3) CONFORMING AMENDMENT.—Section

18 1905(a) of the Social Security Act (42 U.S.C.

19 1396d(a)) is amended in the matter preceding para20 graph (1)—

21 (A) in clause (x), by striking ‘‘or’’ at the

22 end;

23 (B) in clause (xi), by adding ‘‘or’’ at the

24 end; and
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1 (C) by inserting after clause (xi), the fol2 lowing:

3 ‘‘(xii) individuals described in subsection (v),’’.

4 (c) PROHIBITION AGAINST SUPPLANTATION OF

5 STATE FUNDS; MAINTENANCE OF EFFORT REQUIRE6 MENT; CONDITION FOR APPROVAL OF STATE PLAN

7 AMENDMENT.—

8 (1) NO SUPPLANTATION OF STATE FUNDS.—

9 Federal funds paid to a State for medical assistance

10 provided to an individual described in subclause

11 (XV) or (XVI) of section 1902(a)(10)(A)(ii) of the

12 Social Security Act (42 U.S.C. 1396a(a)(10)(A)(ii))

13 must be used to supplement but not supplant the

14 level of State funds expended as of October 1, 1998

15 for programs to enable working individuals with dis16 abilities to work.

17 (2) MAINTENANCE OF EFFORT.—With respect

18 to a fiscal year quarter, no Federal funds may be

19 paid to a State for medical assistance provided to an

20 individual described in subclause (XV) or (XVI) of

21 section 1902(a)(10)(A)(ii) of the Social Security Act

22 (42 U.S.C. 1396a(a)(10)(A)(ii)) for such fiscal year

23 quarter if the Secretary of Health and Human Serv24 ices determines that the total of the State expendi25 tures for programs to enable working individuals
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1 with disabilities to work for the preceding fiscal year

2 quarter is less than the total of such expenditures

3 for the same fiscal year quarter of the preceding fis4 cal year.

5 (3) CONDITION FOR APPROVAL OF STATE PLAN

6 AMENDMENTS.—No State plan amendment that pro7 poses to provide medical assistance to an individual

8 described in subclause (XV) or (XVI) of section

9 1902(a)(10)(A)(ii) of the Social Security Act (42

10 U.S.C. 1396a(a)(10)(A)(ii)) may be approved unless

11 the chief executive officer of the State certifies to

12 the Secretary of Health and Human Services that

13 the plan, as so amended, will satisfy the require14 ments of paragraphs (1) and (2) of this subsection.

15 (d) EFFECTIVE DATE.—

16 (1) IN GENERAL.—The amendments made by

17 this section shall apply on and after October 1,

18 1999.

19 (2) EXTENSION OF EFFECTIVE DATE FOR

20 STATE LAW AMENDMENT.—In the case of a State

21 plan under title XIX of the Social Security Act

22 which the Secretary of Health and Human Services

23 determines requires State legislation in order for the

24 plan to meet the additional requirements imposed by

25 the amendments made by this section, the State
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1 plan shall not be regarded as failing to comply with

2 the requirements of this section solely on the basis

3 of its failure to meet these additional requirements

4 before the first day of the first calendar quarter be5 ginning after the close of the first regular session of

6 the State legislature that begins after the date of en7 actment of this Act. For purposes of the previous

8 sentence, in the case of a State that has a 2-year

9 legislative session, each year of the session is consid10 ered to be a separate regular session of the State

11 legislature.

12 SEC. 102. CONTINUATION OF MEDICARE COVERAGE FOR

13 WORKING INDIVIDUALS WITH DISABILITIES.

14 (a) CONTINUATION OF COVERAGE.—Section 1818A

15 of the Social Security Act (42 U.S.C. 1395i–2a) is amend16 ed by adding at the end the following:

17 ‘‘(e)(1) During the 10-year period beginning with the

18 first month that begins after the date of enactment of this

19 subsection, this section shall apply—

20 ‘‘(A) in subsection (a), by inserting—

21 ‘‘(i) in paragraph (2)(C), ‘‘on or after the

22 date of enactment of the Work Incentives Im23 provement Act of 1999’’ after ‘‘ends’’; and

24 ‘‘(ii) ‘‘without being subject to a premium’’

25 before the period; and
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1 ‘‘(B) without regard to subsections (c)(2)(D)

2 and (d).

3 ‘‘(2) Any individual who, as of the date of enactment

4 of this subsection is enrolled in the medicare program

5 under this section and would, without regard to paragraph

6 (1), otherwise satisfy the eligibility requirements for en7 rollment set forth in subsection (a) shall be deemed to sat8 isfy the requirement of subsection (a)(2)(C) of that section

9 after the application of paragraph (1)(A)(i) for purposes

10 of not being subject to a premium for enrollment in the

11 medicare program under this section.

12 ‘‘(3) Notwithstanding paragraph (1), paragraph (1)

13 shall continue to apply after the termination of the 10-

14 year period described in that paragraph in the case of any

15 individual who is enrolled in the medicare program under

16 this section for the month that ends such 10-year period.’’.

17 (b) GAO REPORT.—Not later than 8 years after the

18 date of enactment of this Act, the Comptroller General

19 of the United States shall submit a report to Congress

20 that—

21 (1) examines the effectiveness and cost of sec22 tion 1818A of the Social Security Act (42 U.S.C.

23 1395i–2a) as amended by subsection (a); and

24 (2) recommends whether that section should

25 continue to be applied, as so amended, beyond the
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1 10-year period described in subsection (e) of that

2 section.

3 SEC. 103. GRANTS TO DEVELOP AND ESTABLISH STATE IN4 FRASTRUCTURES TO SUPPORT WORKING IN5 DIVIDUALS WITH DISABILITIES.

6 (a) ESTABLISHMENT.—

7 (1) IN GENERAL.—The Secretary of Health and

8 Human Services (in this section referred to as the

9 ‘‘Secretary’’) shall award grants described in sub10 section (b) to States to support the design, establish11 ment, and operation of State infrastructures that

12 provide items and services to support working indi13 viduals with disabilities. A State may submit an ap14 plication for a grant authorized under this section at

15 such time, in such manner, and containing such in16 formation as the Secretary may determine.

17 (2) DEFINITION OF STATE.—In this section,

18 the term ‘‘State’’ means each of the 50 States, the

19 District of Columbia, Puerto Rico, Guam, the

20 United States Virgin Islands, American Samoa, and

21 the Commonwealth of the Northern Mariana Is22 lands.

23 (b) GRANTS FOR INFRASTRUCTURE AND OUT24 REACH.—
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1 (1) IN GENERAL.—Out of the funds appro2 priated under subsection (e), the Secretary shall

3 award grants to States to—

4 (A) support the establishment, implemen5 tation, and operation of the State infrastruc6 tures described in subsection (a); and

7 (B) conduct outreach campaigns regarding

8 the existence of such infrastructures.

9 (2) ELIGIBILITY FOR GRANTS.—

10 (A) IN GENERAL.—No State may receive a

11 grant under this subsection unless—

12 (i) the State has an approved amend13 ment to the State plan under title XIX of

14 the Social Security Act (42 U.S.C. 1396 et

15 seq.) that—

16 (I) provides medical assistance

17 under such plan to individuals de18 scribed in section

19 1902(a)(10)(A)(ii)(XV) of the Social

20 Security Act (42 U.S.C.

21 1396a(a)(10)(A)(ii)(XV)); or

22 (II) provides medical assistance

23 under such plan to individuals de24 scribed in subclauses (XV) and (XVI)

25 of section 1902(a)(10)(A)(ii) of the
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1 Social Security Act (42 U.S.C.

2 1396a(a)(10)(A)(ii)); and

3 (ii) the State demonstrates to the sat4 isfaction of the Secretary that the State

5 makes personal assistance services avail6 able under the State plan under title XIX

7 of the Social Security Act (42 U.S.C. 1396

8 et seq.) to the extent necessary to enable

9 individuals described in subclause (I) or

10 (II) of clause (i) to remain employed (as

11 determined under section 1905(v)(2) of the

12 Social Security Act (42 U.S.C.

13 1396d(v)(2)).

14 (B) DEFINITION OF PERSONAL ASSIST15 ANCE SERVICES.—In this paragraph, the term

16 ‘‘personal assistance services’’ means a range of

17 services, provided by 1 or more persons, de18 signed to assist an individual with a disability

19 to perform daily activities on and off the job

20 that the individual would typically perform if

21 the individual did not have a disability. Such

22 services shall be designed to increase the indi23 vidual’s control in life and ability to perform ev24 eryday activities on or off the job.

25 (3) DETERMINATION OF AWARDS.—
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1 (A) IN GENERAL.—Subject to subpara2 graph (B), the Secretary shall determine a for3 mula for awarding grants to States under this

4 section that provides special consideration to

5 States that provide medical assistance under

6 title XIX of the Social Security Act to individ7 uals described in section

8 1902(a)(10)(A)(ii)(XVI) of that Act (42 U.S.C.

9 1396a(a)(10)(A)(ii)(XVI)).

10 (B) AWARD LIMITS.—

11 (i) MINIMUM AWARDS.—No State that

12 submits an approved application for fund13 ing under this section shall receive a grant

14 for a fiscal year that is less than $500,000.

15 (ii) MAXIMUM AWARDS.—No State

16 that submits an approved application for

17 funding under this section shall receive a

18 grant for a fiscal year that exceeds 15 per19 cent of the total expenditures by the State

20 (including the reimbursed Federal share of

21 such expenditures) for medical assistance

22 for individuals eligible under subclause

23 (XV) or (XVI) of section

24 1902(a)(10)(A)(ii), whichever is greater, as
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1 estimated by the State and approved by

2 the Secretary.

3 (c) AVAILABILITY OF FUNDS.—

4 (1) FUNDS ALLOCATED TO STATES.—Funds al5 located to a State under a grant made under this

6 section for a fiscal year shall remain available until

7 expended.

8 (2) FUNDS NOT ALLOCATED TO STATES.—

9 Funds not allocated to States in the fiscal year for

10 which they are appropriated shall remain available

11 in succeeding fiscal years for allocation by the Sec12 retary using the allocation formula established by

13 the Secretary under subsection (c)(3)(A).

14 (d) ANNUAL REPORT.—A State that receives a grant

15 under this section shall submit an annual report to the

16 Secretary on the use of funds provided under the grant.

17 Each report shall include the percentage increase in the

18 number of title II disability beneficiaries, as defined in sec19 tion 1148(k)(3) of the Social Security Act (as amended

20 by section 201) in the State, and title XVI disability bene21 ficiaries, as defined in section 1148(k)(4) of the Social Se22 curity Act (as so amended) in the State who return to

23 work.

24 (e) APPROPRIATION.—Out of any funds in the Treas25 ury not otherwise appropriated, there is authorized to be
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1 appropriated and there is appropriated to make grants

2 under this section—

3 (1) for fiscal year 2000, $20,000,000;

4 (2) for fiscal year 2001, $25,000,000;

5 (3) for fiscal year 2002, $30,000,000;

6 (4) for fiscal year 2003, $35,000,000;

7 (5) for fiscal year 2004, $40,000,000; and

8 (6) for fiscal years 2005 through 2010, the

9 amount appropriated for the preceding fiscal year

10 increased by the percentage increase (if any) in the

11 Consumer Price Index for All Urban Consumers

12 (United States city average) for the preceding fiscal

13 year.

14 (f) RECOMMENDATION.—Not later than October 1,

15 2009, the Secretary of Health and Human Services, in

16 consultation with the Work Incentives Advisory Panel es17 tablished under section 202, shall submit a recommenda18 tion to the Committee on Commerce and the Committee

19 on Ways and Means of the House of Representatives and

20 the Committee on Finance of the Senate regarding wheth21 er the grant program established under this section should

22 be continued after fiscal year 2010.
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1 SEC. 104. DEMONSTRATION OF COVERAGE OF WORKERS

2 WITH POTENTIALLY SEVERE DISABILITIES.

3 (a) STATE APPLICATION.—A State may apply to the

4 Secretary of Health and Human Services (in this section

5 referred to as the ‘‘Secretary’’) for approval of a dem6 onstration project (in this section referred to as a ‘‘dem7 onstration project’’) under which up to a specified maxi8 mum number of individuals who are workers with a poten9 tially severe disability (as defined in subsection (b)(1)) are

10 provided medical assistance equal to that provided under

11 section 1905(a) of the Social Security Act (42 U.S.C.

12 1396d(a)) to individuals described in section

13 1902(a)(10)(A)(ii)(XV) of that Act (42 U.S.C.

14 1396a(a)(10)(A)(ii)(XV)).

15 (b) WORKER WITH A POTENTIALLY SEVERE DIS16 ABILITY DEFINED.—For purposes of this section—

17 (1) IN GENERAL.—The term ‘‘worker with a

18 potentially severe disability’’ means, with respect to

19 a demonstration project, an individual who—

20 (A) is at least 16, but less than 65, years

21 of age;

22 (B) has a specific physical or mental im23 pairment that, as defined by the State under

24 the demonstration project, is reasonably ex25 pected, but for the receipt of items and services

26 described in section 1905(a) of the Social Secu-
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1 rity Act, to become blind or disabled (as defined

2 under section 1614(a) of the Social Security

3 Act); and

4 (C) is employed (as defined in paragraph

5 (2)).

6 (2) DEFINITION OF EMPLOYED.—An individual

7 is considered to be ‘‘employed’’ if the individual—

8 (A) is earning at least the applicable mini9 mum wage requirement under section 6 of the

10 Fair Labor Standards Act (29 U.S.C. 206) and

11 working at least 40 hours per month; or

12 (B) is engaged in a work effort that meets

13 substantial and reasonable threshold criteria for

14 hours of work, wages, or other measures, as de15 fined under the demonstration project and ap16 proved by the Secretary.

17 (c) APPROVAL OF DEMONSTRATION PROJECTS.—

18 (1) IN GENERAL.—Subject to paragraph (3),

19 the Secretary shall approve applications under sub20 section (a) that meet the requirements of paragraph

21 (2) and such additional terms and conditions as the

22 Secretary may require. The Secretary may waive the

23 requirement of section 1902(a)(1) of the Social Se24 curity Act (42 U.S.C. 1396a(a)(1)) to allow for sub25 State demonstrations.
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1 (2) TERMS AND CONDITIONS OF DEMONSTRA2 TION PROJECTS.—The Secretary may not approve a

3 demonstration project under this section unless the

4 State provides assurances satisfactory to the Sec5 retary that the following conditions are or will be

6 met:

7 (A) ELECTION OF OPTIONAL CATEGORY.—

8 The State has elected to provide coverage under

9 its plan under title XIX of the Social Security

10 Act of individuals described in section

11 1902(a)(10)(A)(ii)(XV) of the Social Security

12 Act.

13 (B) MAINTENANCE OF STATE EFFORT.—

14 Federal funds paid to a State pursuant to this

15 section must be used to supplement, but not

16 supplant, the level of State funds expended for

17 workers with potentially severe disabilities

18 under programs in effect for such individuals at

19 the time the demonstration project is approved

20 under this section.

21 (C) INDEPENDENT EVALUATION.—The

22 State provides for an independent evaluation of

23 the project.

24 (3) LIMITATIONS ON FEDERAL FUNDING.—
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1 (A) APPROPRIATION.—Out of any funds in

2 the Treasury not otherwise appropriated, there

3 is authorized to be appropriated and there is

4 appropriated to carry out this section—

5 (i) for fiscal year 2000, $70,000,000;

6 (ii) for fiscal year 2001, $73,000,000;

7 (iii) for fiscal year 2002, $77,000,000;

8 and

9 (iv) for fiscal year 2003, $80,000,000.

10 (B) LIMITATION ON PAYMENTS.—In no

11 case may—

12 (i) the aggregate amount of payment

13 made by the Secretary to States under this

14 section exceed $300,000,000; or

15 (ii) payment be provided by the Sec16 retary for a fiscal year after fiscal year

17 2005.

18 (C) FUNDS ALLOCATED TO STATES.—The

19 Secretary shall allocate funds to States based

20 on their applications and the availability of

21 funds. Funds allocated to a State under a grant

22 made under this section for a fiscal year shall

23 remain available until expended.

24 (D) FUNDS NOT ALLOCATED TO STATES.—

25 Funds not allocated to States in the fiscal year
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1 for which they are appropriated shall remain

2 available in succeeding fiscal years for alloca3 tion by the Secretary using the allocation for4 mula established under this section.

5 (E) PAYMENTS TO STATES.—Subject to

6 the succeeding provisions of this section, the

7 Secretary shall pay to each State with a dem8 onstration project approved under this section,

9 from its allocation under subparagraph (C), an

10 amount for each quarter equal to the Federal

11 medical assistance percentage (as defined in

12 section 1905(b) of the Social Security Act (42

13 U.S.C. 1395d(b)) of expenditures in the quarter

14 for medical assistance provided to workers with

15 a potentially severe disability.

16 (d) STATE DEFINED.—In this section, the term

17 ‘‘State’’ has the meaning given such term for purposes of

18 title XIX of the Social Security Act.
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1 TITLE II—TICKET TO WORK AND

2 SELF-SUFFICIENCY AND RE3 LATED PROVISIONS

4 Subtitle A—Ticket to Work and

5 Self-Sufficiency

6 SEC. 201. ESTABLISHMENT OF THE TICKET TO WORK AND

7 SELF-SUFFICIENCY PROGRAM.

8 (a) IN GENERAL.—Part A of title XI of the Social

9 Security Act (42 U.S.C. 1301 et seq.) is amended by add10 ing after section 1147 (as added by section 8 of the Non11 citizen Benefit Clarification and Other Technical Amend12 ments Act of 1998 (Public Law 105–306; 112 Stat.

13 2928)) the following:

14 ‘‘TICKET TO WORK AND SELF-SUFFICIENCY PROGRAM

15 ‘‘SEC. 1148. (a) IN GENERAL.—The Commissioner

16 shall establish a Ticket to Work and Self-Sufficiency Pro17 gram, under which a disabled beneficiary may use a ticket

18 to work and self-sufficiency issued by the Commissioner

19 in accordance with this section to obtain employment serv20 ices, vocational rehabilitation services, or other support

21 services from an employment network which is of the bene22 ficiary’s choice and which is willing to provide such serv23 ices to the beneficiary.

24 ‘‘(b) TICKET SYSTEM.—
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1 ‘‘(1) DISTRIBUTION OF TICKETS.—The Com2 missioner may issue a ticket to work and self-suffi3 ciency to disabled beneficiaries for participation in

4 the Program.

5 ‘‘(2) ASSIGNMENT OF TICKETS.—A disabled

6 beneficiary holding a ticket to work and self-suffi7 ciency may assign the ticket to any employment net8 work of the beneficiary’s choice which is serving

9 under the Program and is willing to accept the as10 signment.

11 ‘‘(3) TICKET TERMS.—A ticket issued under

12 paragraph (1) shall consist of a document which evi13 dences the Commissioner’s agreement to pay (as

14 provided in paragraph (4)) an employment network,

15 which is serving under the Program and to which

16 such ticket is assigned by the beneficiary, for such

17 employment services, vocational rehabilitation serv18 ices, and other support services as the employment

19 network may provide to the beneficiary.

20 ‘‘(4) PAYMENTS TO EMPLOYMENT NET21 WORKS.—The Commissioner shall pay an employ22 ment network under the Program in accordance with

23 the outcome payment system under subsection

24 (h)(2) or under the outcome-milestone payment sys25 tem under subsection (h)(3) (whichever is elected
27

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1 pursuant to subsection (h)(1)). An employment net2 work may not request or receive compensation for

3 such services from the beneficiary.

4 ‘‘(c) STATE PARTICIPATION.—

5 ‘‘(1) IN GENERAL.—Each State agency admin6 istering or supervising the administration of the

7 State plan approved under title I of the Rehabilita8 tion Act of 1973 may elect to participate in the Pro9 gram as an employment network with respect to a

10 disabled beneficiary. If the State agency does elect

11 to participate in the Program, the State agency also

12 shall elect to be paid under the outcome payment

13 system or the outcome-milestone payment system in

14 accordance with subsection (h)(1). With respect to a

15 disabled beneficiary that the State agency does not

16 elect to have participate in the Program, the State

17 agency shall be paid for services provided to that

18 beneficiary under the system for payment applicable

19 under section 222(d) and subsections (d) and (e) of

20 section 1615. The Commissioner shall provide for

21 periodic opportunities for exercising such elections

22 (and revocations).

23 ‘‘(2) EFFECT OF PARTICIPATION BY STATE

24 AGENCY.—
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1 ‘‘(A) STATE AGENCIES PARTICIPATING.—

2 In any case in which a State agency described

3 in paragraph (1) elects under that paragraph to

4 participate in the Program, the employment

5 services, vocational rehabilitation services, and

6 other support services which, upon assignment

7 of tickets to work and self-sufficiency, are pro8 vided to disabled beneficiaries by the State

9 agency acting as an employment network shall

10 be governed by plans for vocational rehabilita11 tion services approved under title I of the Reha12 bilitation Act of 1973.

13 ‘‘(B) STATE AGENCIES ADMINISTERING

14 MATERNAL AND CHILD HEALTH SERVICES PRO15 GRAMS.—Subparagraph (A) shall not apply

16 with respect to any State agency administering

17 a program under title V of this Act.

18 ‘‘(3) SPECIAL REQUIREMENTS APPLICABLE TO

19 CROSS-REFERRAL TO CERTAIN STATE AGENCIES.—

20 ‘‘(A) IN GENERAL.—In any case in which

21 an employment network has been assigned a

22 ticket to work and self-sufficiency by a disabled

23 beneficiary, no State agency shall be deemed re24 quired, under this section, title I of the Work25 force Investment Act of 1998, title I of the Re-
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1 habilitation Act of 1973, or a State plan ap2 proved under such title, to accept any referral

3 of such disabled beneficiary from such employ4 ment network unless such employment network

5 and such State agency have entered into a writ6 ten agreement that meets the requirements of

7 subparagraph (B). Any beneficiary who has as8 signed a ticket to work and self-sufficiency to

9 an employment network that has not entered

10 into such a written agreement with such a

11 State agency may not access vocational rehabili12 tation services under title I of the Rehabilita13 tion Act of 1973 until such time as the bene14 ficiary is reassigned to a State vocational reha15 bilitation agency by the Program Manager.

16 ‘‘(B) TERMS OF AGREEMENT.—An agree17 ment required by subparagraph (A) shall speci18 fy, in accordance with regulations prescribed

19 pursuant to subparagraph (C)—

20 ‘‘(i) the extent (if any) to which the

21 employment network holding the ticket will

22 provide to the State agency—

23 ‘‘(I) reimbursement for costs in24 curred in providing services described
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1 in subparagraph (A) to the disabled

2 beneficiary; and

3 ‘‘(II) other amounts from pay4 ments made by the Commissioner to

5 the employment network pursuant to

6 subsection (h); and

7 ‘‘(ii) any other conditions that may be

8 required by such regulations.

9 ‘‘(C) REGULATIONS.—The Commissioner

10 and the Secretary of Education shall jointly

11 prescribe regulations specifying the terms of

12 agreements required by subparagraph (A) and

13 otherwise necessary to carry out the provisions

14 of this paragraph.

15 ‘‘(D) PENALTY.—No payment may be

16 made to an employment network pursuant to

17 subsection (h) in connection with services pro18 vided to any disabled beneficiary if such em19 ployment network makes referrals described in

20 subparagraph (A) in violation of the terms of

21 the agreement required under subparagraph (A)

22 or without having entered into such an agree23 ment.

24 ‘‘(d) RESPONSIBILITIES OF THE COMMISSIONER.—
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1 ‘‘(1) SELECTION AND QUALIFICATIONS OF PRO2 GRAM MANAGERS.—The Commissioner shall enter

3 into agreements with 1 or more organizations in the

4 private or public sector for service as a program

5 manager to assist the Commissioner in administer6 ing the Program. Any such program manager shall

7 be selected by means of a competitive bidding proc8 ess, from among organizations in the private or pub9 lic sector with available expertise and experience in

10 the field of vocational rehabilitation and employment

11 services.

12 ‘‘(2) TENURE, RENEWAL, AND EARLY TERMI13 NATION.—Each agreement entered into under para14 graph (1) shall provide for early termination upon

15 failure to meet performance standards which shall be

16 specified in the agreement and which shall be

17 weighted to take into account any performance in

18 prior terms. Such performance standards shall

19 include—

20 ‘‘(A) measures for ease of access by bene21 ficiaries to services; and

22 ‘‘(B) measures for determining the extent

23 to which failures in obtaining services for bene24 ficiaries fall within acceptable parameters, as

25 determined by the Commissioner.
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1 ‘‘(3) PRECLUSION FROM DIRECT PARTICIPA2 TION IN DELIVERY OF SERVICES IN OWN SERVICE

3 AREA.—Agreements under paragraph (1) shall

4 preclude—

5 ‘‘(A) direct participation by a program

6 manager in the delivery of employment services,

7 vocational rehabilitation services, or other sup8 port services to beneficiaries in the service area

9 covered by the program manager’s agreement;

10 and

11 ‘‘(B) the holding by a program manager of

12 a financial interest in an employment network

13 or service provider which provides services in a

14 geographic area covered under the program

15 manager’s agreement.

16 ‘‘(4) SELECTION OF EMPLOYMENT NET17 WORKS.—

18 ‘‘(A) IN GENERAL.—The Commissioner

19 shall select and enter into agreements with em20 ployment networks for service under the Pro21 gram. Such employment networks shall be in

22 addition to State agencies serving as employ23 ment networks pursuant to elections under sub24 section (c).
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1 ‘‘(B) ALTERNATE PARTICIPANTS.—In any

2 State where the Program is being implemented,

3 the Commissioner shall enter into an agreement

4 with any alternate participant that is operating

5 under the authority of section 222(d)(2) in the

6 State as of the date of enactment of this section

7 and chooses to serve as an employment network

8 under the Program.

9 ‘‘(5) TERMINATION OF AGREEMENTS WITH EM10 PLOYMENT NETWORKS.—The Commissioner shall

11 terminate agreements with employment networks for

12 inadequate performance, as determined by the Com13 missioner.

14 ‘‘(6) QUALITY ASSURANCE.—The Commissioner

15 shall provide for such periodic reviews as are nec16 essary to provide for effective quality assurance in

17 the provision of services by employment networks.

18 The Commissioner shall solicit and consider the

19 views of consumers and the program manager under

20 which the employment networks serve and shall con21 sult with providers of services to develop perform22 ance measurements. The Commissioner shall ensure

23 that the results of the periodic reviews are made

24 available to beneficiaries who are prospective service

25 recipients as they select employment networks. The
34

•S 331 IS

1 Commissioner shall ensure that the periodic surveys

2 of beneficiaries receiving services under the Program

3 are designed to measure customer service satisfac4 tion.

5 ‘‘(7) DISPUTE RESOLUTION.—The Commis6 sioner shall provide for a mechanism for resolving

7 disputes between beneficiaries and employment net8 works, between program managers and employment

9 networks, and between program managers and pro10 viders of services. The Commissioner shall afford a

11 party to such a dispute a reasonable opportunity for

12 a full and fair review of the matter in dispute.

13 ‘‘(e) PROGRAM MANAGERS.—

14 ‘‘(1) IN GENERAL.—A program manager shall

15 conduct tasks appropriate to assist the Commis16 sioner in carrying out the Commissioner’s duties in

17 administering the Program.

18 ‘‘(2) RECRUITMENT OF EMPLOYMENT NET19 WORKS.—A program manager shall recruit, and rec20 ommend for selection by the Commissioner, employ21 ment networks for service under the Program. The

22 program manager shall carry out such recruitment

23 and provide such recommendations, and shall mon24 itor all employment networks serving in the Program

25 in the geographic area covered under the program
35

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1 manager’s agreement, to the extent necessary and

2 appropriate to ensure that adequate choices of serv3 ices are made available to beneficiaries. Employment

4 networks may serve under the Program only pursu5 ant to an agreement entered into with the Commis6 sioner under the Program incorporating the applica7 ble provisions of this section and regulations there8 under, and the program manager shall provide and

9 maintain assurances to the Commissioner that pay10 ment by the Commissioner to employment networks

11 pursuant to this section is warranted based on com12 pliance by such employment networks with the terms

13 of such agreement and this section. The program

14 manager shall not impose numerical limits on the

15 number of employment networks to be recommended

16 pursuant to this paragraph.

17 ‘‘(3) FACILITATION OF ACCESS BY BENE18 FICIARIES TO EMPLOYMENT NETWORKS.—A pro19 gram manager shall facilitate access by beneficiaries

20 to employment networks. The program manager

21 shall ensure that each beneficiary is allowed changes

22 in employment networks for good cause, as deter23 mined by the Commissioner, without being deemed

24 to have rejected services under the Program. The

25 program manager shall establish and maintain lists
36

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1 of employment networks available to beneficiaries

2 and shall make such lists generally available to the

3 public. The program manager shall ensure that all

4 information provided to disabled beneficiaries pursu5 ant to this paragraph is provided in accessible for6 mats.

7 ‘‘(4) ENSURING AVAILABILITY OF ADEQUATE

8 SERVICES.—The program manager shall ensure that

9 employment services, vocational rehabilitation serv10 ices, and other support services are provided to

11 beneficiaries throughout the geographic area covered

12 under the program manager’s agreement, including

13 rural areas.

14 ‘‘(5) REASONABLE ACCESS TO SERVICES.—The

15 program manager shall take such measures as are

16 necessary to ensure that sufficient employment net17 works are available and that each beneficiary receiv18 ing services under the Program has reasonable ac19 cess to employment services, vocational rehabilitation

20 services, and other support services. Services pro21 vided under the Program may include case manage22 ment, work incentives planning, supported employ23 ment, career planning, career plan development, vo24 cational assessment, job training, placement, follow25 up services, and such other services as may be speci-
37

•S 331 IS

1 fied by the Commissioner under the Program. The

2 program manager shall ensure that such services are

3 available in each service area.

4 ‘‘(f) EMPLOYMENT NETWORKS.—

5 ‘‘(1) QUALIFICATIONS FOR EMPLOYMENT NET6 WORKS.—

7 ‘‘(A) IN GENERAL.—Each employment net8 work serving under the Program shall consist of

9 an agency or instrumentality of a State (or a

10 political subdivision thereof) or a private entity

11 that assumes responsibility for the coordination

12 and delivery of services under the Program to

13 individuals assigning to the employment net14 work tickets to work and self-sufficiency issued

15 under subsection (b).

16 ‘‘(B) ONE-STOP DELIVERY SYSTEMS.—An

17 employment network serving under the Pro18 gram may consist of a one-stop delivery system

19 established under subtitle B of title I of the

20 Workforce Investment Act of 1998.

21 ‘‘(C) COMPLIANCE WITH SELECTION CRI22 TERIA.—No employment network may serve

23 under the Program unless it meets and main24 tains compliance with both general selection cri25 teria (such as professional and educational
38

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1 qualifications (where applicable)) and specific

2 selection criteria (such as substantial expertise

3 and experience in providing relevant employ4 ment services and supports).

5 ‘‘(D) SINGLE OR ASSOCIATED PROVIDERS

6 ALLOWED.—An employment network shall con7 sist of either a single provider of such services

8 or of an association of such providers organized

9 so as to combine their resources into a single

10 entity. An employment network may meet the

11 requirements of subsection (e)(4) by providing

12 services directly, or by entering into agreements

13 with other individuals or entities providing ap14 propriate employment services, vocational reha15 bilitation services, or other support services.

16 ‘‘(2) REQUIREMENTS RELATING TO PROVISION

17 OF SERVICES.—Each employment network serving

18 under the Program shall be required under the

19 terms of its agreement with the Commissioner to—

20 ‘‘(A) serve prescribed service areas; and

21 ‘‘(B) take such measures as are necessary

22 to ensure that employment services, vocational

23 rehabilitation services, and other support serv24 ices provided under the Program by, or under

25 agreements entered into with, the employment
39

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1 network are provided under appropriate individ2 ual work plans meeting the requirements of

3 subsection (g).

4 ‘‘(3) ANNUAL FINANCIAL REPORTING.—Each

5 employment network shall meet financial reporting

6 requirements as prescribed by the Commissioner.

7 ‘‘(4) PERIODIC OUTCOMES REPORTING.—Each

8 employment network shall prepare periodic reports,

9 on at least an annual basis, itemizing for the covered

10 period specific outcomes achieved with respect to

11 specific services provided by the employment net12 work. Such reports shall conform to a national

13 model prescribed under this section. Each employ14 ment network shall provide a copy of the latest re15 port issued by the employment network pursuant to

16 this paragraph to each beneficiary upon enrollment

17 under the Program for services to be received

18 through such employment network. Upon issuance of

19 each report to each beneficiary, a copy of the report

20 shall be maintained in the files of the employment

21 network. The program manager shall ensure that

22 copies of all such reports issued under this para23 graph are made available to the public under reason24 able terms.

25 ‘‘(g) INDIVIDUAL WORK PLANS.—
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1 ‘‘(1) REQUIREMENTS.—Each employment net2 work shall—

3 ‘‘(A) take such measures as are necessary

4 to ensure that employment services, vocational

5 rehabilitation services, and other support serv6 ices provided under the Program by, or under

7 agreements entered into with, the employment

8 network are provided under appropriate individ9 ual work plans that meet the requirements of

10 subparagraph (C);

11 ‘‘(B) develop and implement each such in12 dividual work plan in partnership with each

13 beneficiary receiving such services in a manner

14 that affords the beneficiary the opportunity to

15 exercise informed choice in selecting an employ16 ment goal and specific services needed to

17 achieve that employment goal;

18 ‘‘(C) ensure that each individual work plan

19 includes at least—

20 ‘‘(i) a statement of the vocational goal

21 developed with the beneficiary;

22 ‘‘(ii) a statement of the services and

23 supports that have been deemed necessary

24 for the beneficiary to accomplish that goal;
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1 ‘‘(iii) a statement of any terms and

2 conditions related to the provision of such

3 services and supports; and

4 ‘‘(iv) a statement of understanding re5 garding the beneficiary’s rights under the

6 Program (such as the right to retrieve the

7 ticket to work and self-sufficiency if the

8 beneficiary is dissatisfied with the services

9 being provided by the employment net10 work) and remedies available to the indi11 vidual, including information on the avail12 ability of advocacy services and assistance

13 in resolving disputes through the State

14 grant program authorized under section

15 1150;

16 ‘‘(D) provide a beneficiary the opportunity

17 to amend the individual work plan if a change

18 in circumstances necessitates a change in the

19 plan; and

20 ‘‘(E) make each beneficiary’s individual

21 work plan available to the beneficiary in, as ap22 propriate, an accessible format chosen by the

23 beneficiary.

24 ‘‘(2) EFFECTIVE UPON WRITTEN APPROVAL.—

25 A beneficiary’s individual work plan shall take effect
42

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1 upon written approval by the beneficiary or a rep2 resentative of the beneficiary and a representative of

3 the employment network that, in providing such

4 written approval, acknowledges assignment of the

5 beneficiary’s ticket to work and self-sufficiency.

6 ‘‘(h) EMPLOYMENT NETWORK PAYMENT SYSTEMS.—

7 ‘‘(1) ELECTION OF PAYMENT SYSTEM BY EM8 PLOYMENT NETWORKS.—

9 ‘‘(A) IN GENERAL.—The Program shall

10 provide for payment authorized by the Commis11 sioner to employment networks under either an

12 outcome payment system or an outcome-mile13 stone payment system. Each employment net14 work shall elect which payment system will be

15 utilized by the employment network, and, for

16 such period of time as such election remains in

17 effect, the payment system so elected shall be

18 utilized exclusively in connection with such em19 ployment network (except as provided in sub20 paragraph (B)).

21 ‘‘(B) NO CHANGE IN METHOD OF PAY22 MENT FOR BENEFICIARIES WITH TICKETS AL23 READY ASSIGNED TO THE EMPLOYMENT NET24 WORKS.—Any election of a payment system by

25 an employment network that would result in a
43

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1 change in the method of payment to the em2 ployment network for services provided to a

3 beneficiary who is receiving services from the

4 employment network at the time of the election

5 shall not be effective with respect to payment

6 for services provided to that beneficiary and the

7 method of payment previously selected shall

8 continue to apply with respect to such services.

9 ‘‘(2) OUTCOME PAYMENT SYSTEM.—

10 ‘‘(A) IN GENERAL.—The outcome payment

11 system shall consist of a payment structure gov12 erning employment networks electing such sys13 tem under paragraph (1)(A) which meets the

14 requirements of this paragraph.

15 ‘‘(B) PAYMENTS MADE DURING OUTCOME

16 PAYMENT PERIOD.—The outcome payment sys17 tem shall provide for a schedule of payments to

18 an employment network in connection with each

19 individual who is a beneficiary for each month

20 during the individual’s outcome payment period

21 for which benefits (described in paragraphs (3)

22 and (4) of subsection (k)) are not payable to

23 such individual because of work or earnings.

24 ‘‘(C) COMPUTATION OF PAYMENTS TO EM25 PLOYMENT NETWORK.—The payment schedule
44

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1 of the outcome payment system shall be de2 signed so that—

3 ‘‘(i) the payment for each of the 60

4 months during the outcome payment pe5 riod for which benefits (described in para6 graphs (3) and (4) of subsection (k)) are

7 not payable is equal to a fixed percentage

8 of the payment calculation base for the cal9 endar year in which such month occurs;

10 and

11 ‘‘(ii) such fixed percentage is set at a

12 percentage which does not exceed 40 per13 cent.

14 ‘‘(3) OUTCOME-MILESTONE PAYMENT SYS15 TEM.—

16 ‘‘(A) IN GENERAL.—The outcome-mile17 stone payment system shall consist of a pay18 ment structure governing employment networks

19 electing such system under paragraph (1)(A)

20 which meets the requirements of this para21 graph.

22 ‘‘(B) EARLY PAYMENTS UPON ATTAIN23 MENT OF MILESTONES IN ADVANCE OF OUT24 COME PAYMENT PERIODS.—The outcome-mile25 stone payment system shall provide for 1 or
45

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1 more milestones with respect to beneficiaries re2 ceiving services from an employment network

3 under the Program that are directed toward the

4 goal of permanent employment. Such milestones

5 shall form a part of a payment structure that

6 provides, in addition to payments made during

7 outcome payment periods, payments made prior

8 to outcome payment periods in amounts based

9 on the attainment of such milestones.

10 ‘‘(C) LIMITATION ON TOTAL PAYMENTS TO

11 EMPLOYMENT NETWORK.—The payment sched12 ule of the outcome-milestone payment system

13 shall be designed so that the total of the pay14 ments to the employment network with respect

15 to each beneficiary is less than, on a net

16 present value basis (using an interest rate de17 termined by the Commissioner that appro18 priately reflects the cost of funds faced by pro19 viders), the total amount to which payments to

20 the employment network with respect to the

21 beneficiary would be limited if the employment

22 network were paid under the outcome payment

23 system.

24 ‘‘(4) DEFINITIONS.—In this subsection:
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1 ‘‘(A) PAYMENT CALCULATION BASE.—The

2 term ‘payment calculation base’ means, for any

3 calendar year—

4 ‘‘(i) in connection with a title II dis5 ability beneficiary, the average disability

6 insurance benefit payable under section

7 223 for all beneficiaries for months during

8 the preceding calendar year; and

9 ‘‘(ii) in connection with a title XVI

10 disability beneficiary (who is not concur11 rently a title II disability beneficiary), the

12 average payment of supplemental security

13 income benefits based on disability payable

14 under title XVI (excluding State sup15 plementation) for months during the pre16 ceding calendar year to all beneficiaries

17 who have attained age 18 but have not at18 tained age 65.

19 ‘‘(B) OUTCOME PAYMENT PERIOD.—The

20 term ‘outcome payment period’ means, in con21 nection with any individual who had assigned a

22 ticket to work and self-sufficiency to an employ23 ment network under the Program, a period—

24 ‘‘(i) beginning with the first month,

25 ending after the date on which such ticket
47

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1 was assigned to the employment network,

2 for which benefits (described in paragraphs

3 (3) and (4) of subsection (k)) are not pay4 able to such individual by reason of en5 gagement in substantial gainful activity or

6 by reason of earnings from work activity;

7 and

8 ‘‘(ii) ending with the 60th month

9 (consecutive or otherwise), ending after

10 such date, for which such benefits are not

11 payable to such individual by reason of en12 gagement in substantial gainful activity or

13 by reason of earnings from work activity.

14 ‘‘(5) PERIODIC REVIEW AND ALTERATIONS OF

15 PRESCRIBED SCHEDULES.—

16 ‘‘(A) PERCENTAGES AND PERIODS.—The

17 Commissioner shall periodically review the per18 centage specified in paragraph (2)(C), the total

19 payments permissible under paragraph (3)(C),

20 and the period of time specified in paragraph

21 (4)(B) to determine whether such percentages,

22 such permissible payments, and such period

23 provide an adequate incentive for employment

24 networks to assist beneficiaries to enter the

25 workforce, while providing for appropriate
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1 economies. The Commissioner may alter such

2 percentage, such total permissible payments, or

3 such period of time to the extent that the Com4 missioner determines, on the basis of the Com5 missioner’s review under this paragraph, that

6 such an alteration would better provide the in7 centive and economies described in the preced8 ing sentence.

9 ‘‘(B) NUMBER AND AMOUNTS OF MILE10 STONE PAYMENTS.—The Commissioner shall

11 periodically review the number and amounts of

12 milestone payments established by the Commis13 sioner pursuant to this section to determine

14 whether they provide an adequate incentive for

15 employment networks to assist beneficiaries to

16 enter the workforce, taking into account infor17 mation provided to the Commissioner by pro18 gram managers, the Work Incentives Advisory

19 Panel established under section 202 of the

20 Work Incentives Improvement Act of 1999, and

21 other reliable sources. The Commissioner may

22 from time to time alter the number and

23 amounts of milestone payments initially estab24 lished by the Commissioner pursuant to this

25 section to the extent that the Commissioner de-
49

•S 331 IS

1 termines that such an alteration would allow an

2 adequate incentive for employment networks to

3 assist beneficiaries to enter the workforce. Such

4 alteration shall be based on information pro5 vided to the Commissioner by program man6 agers, the Work Incentives Advisory Panel es7 tablished under section 202 of the Work Incen8 tives Improvement Act of 1999, or other reli9 able sources.

10 ‘‘(i) SUSPENSION OF DISABILITY REVIEWS.—During

11 any period for which an individual is using, as defined by

12 the Commissioner, a ticket to work and self-sufficiency

13 issued under this section, the Commissioner (and any ap14 plicable State agency) may not initiate a continuing dis15 ability review or other review under section 221 of whether

16 the individual is or is not under a disability or a review

17 under title XVI similar to any such review under section

18 221.

19 ‘‘(j) ALLOCATION OF COSTS.—

20 ‘‘(1) PAYMENTS TO EMPLOYMENT NET21 WORKS.—Payments to employment networks (in22 cluding State agencies that elect to participate in the

23 Program as an employment network) shall be made

24 from the Federal Old-Age and Survivors Insurance

25 Trust Fund or the Federal Disability Insurance
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1 Trust Fund, as appropriate, in the case of ticketed

2 title II disability beneficiaries who return to work,

3 or from the appropriation made available for making

4 supplemental security income payments under title

5 XVI, in the case of title XVI disability beneficiaries

6 who return to work. With respect to ticketed bene7 ficiaries who concurrently are entitled to benefits

8 under title II and eligible for payments under title

9 XVI who return to work, the Commissioner shall al10 locate the cost of payments to employment networks

11 to which the tickets of such beneficiaries have been

12 assigned among such Trust Funds and appropria13 tion, as appropriate.

14 ‘‘(2) ADMINISTRATIVE EXPENSES.—The costs

15 of administering this section (other than payments

16 to employment networks) shall be paid from

17 amounts made available for the administration of

18 title II and amounts made available for the adminis19 tration of title XVI, and shall be allocated among

20 those amounts as appropriate.

21 ‘‘(k) DEFINITIONS.—In this section:

22 ‘‘(1) COMMISSIONER.—The term ‘Commis23 sioner’ means the Commissioner of Social Security.
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1 ‘‘(2) DISABLED BENEFICIARY.—The term ‘dis2 abled beneficiary’ means a title II disability bene3 ficiary or a title XVI disability beneficiary.

4 ‘‘(3) TITLE II DISABILITY BENEFICIARY.—The

5 term ‘title II disability beneficiary’ means an individ6 ual entitled to disability insurance benefits under

7 section 223 or to monthly insurance benefits under

8 section 202 based on such individual’s disability (as

9 defined in section 223(d)). An individual is a title II

10 disability beneficiary for each month for which such

11 individual is entitled to such benefits.

12 ‘‘(4) TITLE XVI DISABILITY BENEFICIARY.—

13 The term ‘title XVI disability beneficiary’ means an

14 individual eligible for supplemental security income

15 benefits under title XVI on the basis of blindness

16 (within the meaning of section 1614(a)(2)) or dis17 ability (within the meaning of section 1614(a)(3)).

18 An individual is a title XVI disability beneficiary for

19 each month for which such individual is eligible for

20 such benefits.

21 ‘‘(5) SUPPLEMENTAL SECURITY INCOME BENE22 FIT UNDER TITLE XVI.—The term ‘supplemental se23 curity income benefit under title XVI’ means a cash

24 benefit under section 1611 or 1619(a), and does not
52

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1 include a State supplementary payment, adminis2 tered federally or otherwise.

3 ‘‘(l) REGULATIONS.—Not later than 1 year after the

4 date of enactment of this section, the Commissioner shall

5 prescribe such regulations as are necessary to carry out

6 the provisions of this section.

7 ‘‘(m) SUNSET OF PROGRAM.—The Program estab8 lished under this section shall terminate on September 30,

9 2004.’’.

10 (b) CONFORMING AMENDMENTS.—

11 (1) AMENDMENTS TO TITLE II.—

12 (A) Section 221(i) of the Social Security

13 Act (42 U.S.C. 421(i)) is amended by adding at

14 the end the following:

15 ‘‘(5) For suspension of reviews under this subsection

16 in the case of an individual using a ticket to work and

17 self-sufficiency, see section 1148(i).’’.

18 (B) Section 222(a) of the Social Security

19 Act (42 U.S.C. 422(a)) is repealed.

20 (C) Section 222(b) of the Social Security

21 Act (42 U.S.C. 422(b)) is repealed.

22 (D) Section 225(b)(1) of the Social Secu23 rity Act (42 U.S.C. 425(b)(1)) is amended by

24 striking ‘‘a program of vocational rehabilitation

25 services’’ and inserting ‘‘a program consisting
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1 of the Ticket to Work and Self-Sufficiency Pro2 gram under section 1148 or another program of

3 vocational rehabilitation services, employment

4 services, or other support services’’.

5 (2) AMENDMENTS TO TITLE XVI.—

6 (A) Section 1615(a) of the Social Security

7 Act (42 U.S.C. 1382d(a)) is amended to read

8 as follows:

9 ‘‘SEC. 1615. (a) In the case of any blind or disabled

10 individual who—

11 ‘‘(1) has not attained age 16, and

12 ‘‘(2) with respect to whom benefits are paid

13 under this title,

14 the Commissioner of Social Security shall make provision

15 for referral of such individual to the appropriate State

16 agency administering the State program under title V.’’.

17 (B) Section 1615(c) of the Social Security

18 Act (42 U.S.C. 1382d(c)) is repealed.

19 (C) Section 1631(a)(6)(A) of the Social

20 Security Act (42 U.S.C. 1383(a)(6)(A)) is

21 amended by striking ‘‘a program of vocational

22 rehabilitation services’’ and inserting ‘‘a pro23 gram consisting of the Ticket to Work and Self24 Sufficiency Program under section 1148 or an25 other program of vocational rehabilitation serv-
54

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1 ices, employment services, or other support

2 services’’.

3 (D) Section 1633(c) of the Social Security

4 Act (42 U.S.C. 1383b(c)) is amended—

5 (i) by inserting ‘‘(1)’’ after ‘‘(c)’’; and

6 (ii) by adding at the end the follow7 ing:

8 ‘‘(2) For suspension of continuing disability reviews

9 and other reviews under this title similar to reviews under

10 section 221 in the case of an individual using a ticket to

11 work and self-sufficiency, see section 1148(i).’’.

12 (c) EFFECTIVE DATE.—Subject to subsection (d),

13 the amendments made by subsections (a) and (b) shall

14 take effect with the first month following 1 year after the

15 date of enactment of this Act.

16 (d) GRADUATED IMPLEMENTATION OF PROGRAM.—

17 (1) IN GENERAL.—Not later than 1 year after

18 the date of enactment of this Act, the Commissioner

19 of Social Security shall commence implementation of

20 the amendments made by this section (other than

21 paragraphs (1)(C) and (2)(B) of subsection (b)) in

22 graduated phases at phase-in sites selected by the

23 Commissioner. Such phase-in sites shall be selected

24 so as to ensure, prior to full implementation of the

25 Ticket to Work and Self-Sufficiency Program, the
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1 development and refinement of referral processes,

2 payment systems, computer linkages, management

3 information systems, and administrative processes

4 necessary to provide for full implementation of such

5 amendments. Subsection (c) shall apply with respect

6 to paragraphs (1)(C) and (2)(B) of subsection (b)

7 without regard to this subsection.

8 (2) REQUIREMENTS.—Implementation of the

9 Program at each phase-in site shall be carried out

10 on a wide enough scale to permit a thorough evalua11 tion of the alternative methods under consideration,

12 so as to ensure that the most efficacious methods

13 are determined and in place for full implementation

14 of the Program on a timely basis.

15 (3) FULL IMPLEMENTATION.—The Commis16 sioner shall ensure that the ability to provide tickets

17 and services to individuals under the Program exists

18 in every State as soon as practicable on or after the

19 effective date specified in subsection (c) but not later

20 than 3 years after such date.

21 (4) ONGOING EVALUATION OF PROGRAM.—

22 (A) IN GENERAL.—The Commissioner

23 shall design and conduct a series of evaluations

24 to assess the cost-effectiveness of activities car25 ried out under this section and the amendments
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1 made thereby, as well as the effects of this sec2 tion and the amendments made thereby on

3 work outcomes for beneficiaries receiving tickets

4 to work and self-sufficiency under the Program.

5 (B) CONSULTATION.—The Commissioner

6 shall design and carry out the series of evalua7 tions after receiving relevant advice from ex8 perts in the fields of disability, vocational reha9 bilitation, and program evaluation and individ10 uals using tickets to work and self-sufficiency

11 under the Program and consulting with the

12 Work Incentives Advisory Panel established

13 under section 202, the Comptroller General of

14 the United States, other agencies of the Federal

15 Government, and private organizations with ap16 propriate expertise.

17 (C) METHODOLOGY.—

18 (i) IMPLEMENTATION.—The Commis19 sioner, in consultation with the Work In20 centives Advisory Panel established under

21 section 202, shall ensure that plans for

22 evaluations and data collection methods

23 under the Program are appropriately de24 signed to obtain detailed employment infor25 mation.
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1 (ii) SPECIFIC MATTERS TO BE AD2 DRESSED.—Each such evaluation shall ad3 dress (but is not limited to)—

4 (I) the annual cost (including net

5 cost) of the Program and the annual

6 cost (including net cost) that would

7 have been incurred in the absence of

8 the Program;

9 (II) the determinants of return to

10 work, including the characteristics of

11 beneficiaries in receipt of tickets

12 under the Program;

13 (III) the types of employment

14 services, vocational rehabilitation serv15 ices, and other support services fur16 nished to beneficiaries in receipt of

17 tickets under the Program who return

18 to work and to those who do not re19 turn to work;

20 (IV) the duration of employment

21 services, vocational rehabilitation serv22 ices, and other support services fur23 nished to beneficiaries in receipt of

24 tickets under the Program who return

25 to work and the duration of such serv-
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1 ices furnished to those who do not re2 turn to work and the cost to employ3 ment networks of furnishing such

4 services;

5 (V) the employment outcomes,

6 including wages, occupations, benefits,

7 and hours worked, of beneficiaries

8 who return to work after receiving

9 tickets under the Program and those

10 who return to work without receiving

11 such tickets;

12 (VI) the characteristics of provid13 ers whose services are provided within

14 an employment network under the

15 Program;

16 (VII) the extent (if any) to which

17 employment networks display a great18 er willingness to provide services to

19 beneficiaries with a range of disabil20 ities;

21 (VIII) the characteristics (includ22 ing employment outcomes) of those

23 beneficiaries who receive services

24 under the outcome payment system

25 and of those beneficiaries who receive
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1 services under the outcome-milestone

2 payment system;

3 (IX) measures of satisfaction

4 among beneficiaries in receipt of tick5 ets under the Program; and

6 (X) reasons for (including com7 ments solicited from beneficiaries re8 garding) their choice not to use their

9 tickets or their inability to return to

10 work despite the use of their tickets.

11 (D) PERIODIC EVALUATION REPORTS.—

12 Following the close of the third and fifth fiscal

13 years ending after the effective date under sub14 section (c), and prior to the close of the seventh

15 fiscal year ending after such date, the Commis16 sioner shall transmit to the Committee on Ways

17 and Means of the House of Representatives and

18 the Committee on Finance of the Senate a re19 port containing the Commissioner’s evaluation

20 of the progress of activities conducted under the

21 provisions of this section and the amendments

22 made thereby. Each such report shall set forth

23 the Commissioner’s evaluation of the extent to

24 which the Program has been successful and the

25 Commissioner’s conclusions on whether or how
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1 the Program should be modified. Each such re2 port shall include such data, findings, materials,

3 and recommendations as the Commissioner may

4 consider appropriate.

5 (5) EXTENT OF STATE’S RIGHT OF FIRST RE6 FUSAL IN ADVANCE OF FULL IMPLEMENTATION OF

7 AMENDMENTS IN SUCH STATE.—

8 (A) IN GENERAL.—In the case of any

9 State in which the amendments made by sub10 section (a) have not been fully implemented

11 pursuant to this subsection, the Commissioner

12 shall determine by regulation the extent to

13 which—

14 (i) the requirement under section

15 222(a) of the Social Security Act for

16 prompt referrals to a State agency, and

17 (ii) the authority of the Commissioner

18 under section 222(d)(2) of the Social Secu19 rity Act to provide vocational rehabilitation

20 services in such State by agreement or

21 contract with other public or private agen22 cies, organizations, institutions, or individ23 uals,

24 shall apply in such State.
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1 (B) EXISTING AGREEMENTS.—Nothing in

2 subparagraph (A) or the amendments made by

3 subsection (a) shall be construed to limit, im4 pede, or otherwise affect any agreement entered

5 into pursuant to section 222(d)(2) of the Social

6 Security Act before the date of enactment of

7 this Act with respect to services provided pursu8 ant to such agreement to beneficiaries receiving

9 services under such agreement as of such date,

10 except with respect to services (if any) to be

11 provided after 3 years after the effective date

12 provided in subsection (c).

13 (e) SPECIFIC REGULATIONS REQUIRED.—

14 (1) IN GENERAL.—The Commissioner of Social

15 Security shall prescribe such regulations as are nec16 essary to implement the amendments made by this

17 section.

18 (2) SPECIFIC MATTERS TO BE INCLUDED IN

19 REGULATIONS.—The matters which shall be ad20 dressed in such regulations shall include—

21 (A) the form and manner in which tickets

22 to work and self-sufficiency may be distributed

23 to beneficiaries pursuant to section 1148(b)(1)

24 of the Social Security Act;
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1 (B) the format and wording of such tick2 ets, which shall incorporate by reference any

3 contractual terms governing service by employ4 ment networks under the Program;

5 (C) the form and manner in which State

6 agencies may elect participation in the Ticket to

7 Work and Self-Sufficiency Program (and revoke

8 such an election) pursuant to section

9 1148(c)(1) of the Social Security Act and provi10 sion for periodic opportunities for exercising

11 such elections (and revocations);

12 (D) the status of State agencies under sec13 tion 1148(c)(1) at the time that State agencies

14 exercise elections (and revocations) under that

15 section;

16 (E) the terms of agreements to be entered

17 into with program managers pursuant to sec18 tion 1148(d) of the Social Security Act,

19 including—

20 (i) the terms by which program man21 agers are precluded from direct participa22 tion in the delivery of services pursuant to

23 section 1148(d)(3) of the Social Security

24 Act;
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1 (ii) standards which must be met by

2 quality assurance measures referred to in

3 paragraph (6) of section 1148(d) and

4 methods of recruitment of employment net5 works utilized pursuant to paragraph (2)

6 of section 1148(e); and

7 (iii) the format under which dispute

8 resolution will operate under section

9 1148(d)(7);

10 (F) the terms of agreements to be entered

11 into with employment networks pursuant to sec12 tion 1148(d)(4) of the Social Security Act,

13 including—

14 (i) the manner in which service areas

15 are specified pursuant to section

16 1148(f)(2)(A) of the Social Security Act;

17 (ii) the general selection criteria and

18 the specific selection criteria which are ap19 plicable to employment networks under

20 section 1148(f)(1)(C) of the Social Secu21 rity Act in selecting service providers;

22 (iii) specific requirements relating to

23 annual financial reporting by employment

24 networks pursuant to section 1148(f)(3) of

25 the Social Security Act; and
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1 (iv) the national model to which peri2 odic outcomes reporting by employment

3 networks must conform under section

4 1148(f)(4) of the Social Security Act;

5 (G) standards which must be met by indi6 vidual work plans pursuant to section 1148(g)

7 of the Social Security Act;

8 (H) standards which must be met by pay9 ment systems required under section 1148(h) of

10 the Social Security Act, including—

11 (i) the form and manner in which

12 elections by employment networks of pay13 ment systems are to be exercised pursuant

14 to section 1148(h)(1)(A);

15 (ii) the terms which must be met by

16 an outcome payment system under section

17 1148(h)(2);

18 (iii) the terms which must be met by

19 an outcome-milestone payment system

20 under section 1148(h)(3);

21 (iv) any revision of the percentage

22 specified in paragraph (2)(C) of section

23 1148(h) of the Social Security Act or the

24 period of time specified in paragraph

25 (4)(B) of such section 1148(h); and
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1 (v) annual oversight procedures for

2 such systems; and

3 (I) procedures for effective oversight of the

4 Program by the Commissioner of Social Secu5 rity, including periodic reviews and reporting

6 requirements.

7 SEC. 202. WORK INCENTIVES ADVISORY PANEL.

8 (a) ESTABLISHMENT.—There is established within

9 the Social Security Administration a panel to be known

10 as the ‘‘Work Incentives Advisory Panel’’ (in this section

11 referred to as the ‘‘Panel’’).

12 (b) DUTIES OF PANEL.—It shall be the duty of the

13 Panel to—

14 (1) advise the Secretary of Health and Human

15 Services, the Secretary of Labor, the Secretary of

16 Education, and the Commissioner of Social Security

17 on issues related to work incentives programs, plan18 ning, and assistance for individuals with disabilities,

19 including work incentive provisions under titles II,

20 XI, XVI, XVIII, and XIX of the Social Security Act

21 (42 U.S.C. 401 et seq., 1301 et seq., 1381 et seq.,

22 1395 et seq., 1396 et seq.); and

23 (2) with respect to the Ticket to Work and Self24 Sufficiency Program established under section 1148

25 of the Social Security Act—
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1 (A) advise the Commissioner of Social Se2 curity with respect to establishing phase-in sites

3 for such Program and fully implementing the

4 Program thereafter, the refinement of access of

5 disabled beneficiaries to employment networks,

6 payment systems, and management information

7 systems, and advise the Commissioner whether

8 such measures are being taken to the extent

9 necessary to ensure the success of the Program;

10 (B) advise the Commissioner regarding the

11 most effective designs for research and dem12 onstration projects associated with the Program

13 or conducted pursuant to section 302;

14 (C) advise the Commissioner on the devel15 opment of performance measurements relating

16 to quality assurance under section 1148(d)(6)

17 of the Social Security Act; and

18 (D) furnish progress reports on the Pro19 gram to the Commissioner and each House of

20 Congress.

21 (c) MEMBERSHIP.—

22 (1) NUMBER AND APPOINTMENT.—The Panel

23 shall be composed of 12 members appointed by the

24 Commissioner of Social Security in consultation with

25 the Speaker of the House of Representatives, the
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1 Minority Leader of the House of Representatives,

2 the Majority Leader of the Senate, and the Minority

3 Leader of the Senate.

4 (2) REPRESENTATION.—All members appointed

5 to the Panel shall have experience or expert knowl6 edge in the fields of, or related to, work incentive

7 programs, employment services, vocational rehabili8 tation services, health care services, and other sup9 port services for individuals with disabilities. At least

10 7 members of the Panel shall be individuals with dis11 abilities or representatives of individuals with dis12 abilities, except that, of those 7 members, at least 5

13 members shall be current or former title II disability

14 beneficiaries or title XVI disability beneficiaries (as

15 such terms are defined in section 1148(k) of the So16 cial Security Act (as added by section 201(a) of this

17 Act)).

18 (3) TERMS.—

19 (A) IN GENERAL.—Each member shall be

20 appointed for a term of 4 years (or, if less, for

21 the remaining life of the Panel), except as pro22 vided in subparagraphs (B) and (C). The initial

23 members shall be appointed not later than 90

24 days after the date of enactment of this Act.
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1 (B) TERMS OF INITIAL APPOINTEES.—As

2 designated by the Commissioner at the time of

3 appointment, of the members first appointed—

4 (i) 6 of the members appointed under

5 paragraph (1) shall be appointed for a

6 term of 2 years, and

7 (ii) 6 of the members appointed under

8 paragraph (1) shall be appointed for a

9 term of 4 years.

10 (C) VACANCIES.—Any member appointed

11 to fill a vacancy occurring before the expiration

12 of the term for which the member’s predecessor

13 was appointed shall be appointed only for the

14 remainder of that term. A member may serve

15 after the expiration of that member’s term until

16 a successor has taken office. A vacancy in the

17 Panel shall be filled in the manner in which the

18 original appointment was made.

19 (4) BASIC PAY.—Members shall each be paid at

20 a rate, and in a manner, that is consistent with

21 guidelines established under section 7 of the Federal

22 Advisory Committee Act (5 U.S.C. App.).

23 (5) TRAVEL EXPENSES.—Each member shall

24 receive travel expenses, including per diem in lieu of
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1 subsistence, in accordance with sections 5702 and

2 5703 of title 5, United States Code.

3 (6) QUORUM.—Eight members of the Panel

4 shall constitute a quorum but a lesser number may

5 hold hearings.

6 (7) CHAIRPERSON.—The Chairperson of the

7 Panel shall be designated by the Commissioner. The

8 term of office of the Chairperson shall be 4 years.

9 (8) MEETINGS.—The Panel shall meet at least

10 quarterly and at other times at the call of the Chair11 person or a majority of its members.

12 (d) DIRECTOR AND STAFF OF PANEL; EXPERTS AND

13 CONSULTANTS.—

14 (1) DIRECTOR.—The Panel shall have a Direc15 tor who shall be appointed by the Commissioner and

16 paid at a rate, and in a manner, that is consistent

17 with guidelines established under section 7 of the

18 Federal Advisory Committee Act (5 U.S.C. App.).

19 (2) STAFF.—Subject to rules prescribed by the

20 Commissioner, the Director may appoint and fix the

21 pay of additional personnel as the Director considers

22 appropriate.

23 (3) EXPERTS AND CONSULTANTS.—Subject to

24 rules prescribed by the Commissioner, the Director
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•S 331 IS

1 may procure temporary and intermittent services

2 under section 3109(b) of title 5, United States Code.

3 (4) STAFF OF FEDERAL AGENCIES.—Upon re4 quest of the Panel, the head of any Federal depart5 ment or agency may detail, on a reimbursable basis,

6 any of the personnel of that department or agency

7 to the Panel to assist it in carrying out its duties

8 under this section.

9 (e) POWERS OF PANEL.—

10 (1) HEARINGS AND SESSIONS.—The Panel may,

11 for the purpose of carrying out its duties under this

12 section, hold such hearings, sit and act at such times

13 and places, and take such testimony and evidence as

14 the Panel considers appropriate.

15 (2) POWERS OF MEMBERS AND AGENTS.—Any

16 member or agent of the Panel may, if authorized by

17 the Panel, take any action which the Panel is au18 thorized to take by this section.

19 (3) MAILS.—The Panel may use the United

20 States mails in the same manner and under the

21 same conditions as other departments and agencies

22 of the United States.

23 (f) REPORTS.—
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1 (1) INTERIM REPORTS.—The Panel shall sub2 mit to the President and Congress interim reports at

3 least annually.

4 (2) FINAL REPORT.—The Panel shall transmit

5 a final report to the President and Congress not

6 later than 8 years after the date of enactment of

7 this Act. The final report shall contain a detailed

8 statement of the findings and conclusions of the

9 Panel, together with its recommendations for legisla10 tion and administrative actions which the Panel con11 siders appropriate.

12 (g) TERMINATION.—The Panel shall terminate 30

13 days after the date of the submission of its final report

14 under subsection (f)(2).

15 (h) ALLOCATION OF COSTS.—The costs of carrying

16 out this section shall be paid from amounts made available

17 for the administration of title II of the Social Security Act

18 (42 U.S.C. 401 et seq.) and amounts made available for

19 the administration of title XVI of that Act (42 U.S.C.

20 1381 et seq.), and shall be allocated among those amounts

21 as appropriate.
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1 Subtitle B—Elimination of Work

2 Disincentives

3 SEC. 211. PROHIBITION ON USING WORK ACTIVITY AS A

4 BASIS FOR REVIEW OF AN INDIVIDUAL’S DIS5 ABLED STATUS.

6 Section 221 of the Social Security Act (42 U.S.C.

7 421) is amended by adding at the end the following:

8 ‘‘(m)(1) In any case where an individual entitled to

9 disability insurance benefits under section 223 or to

10 monthly insurance benefits under section 202 based on

11 such individual’s disability (as defined in section 223(d))

12 has received such benefits for at least 24 months—

13 ‘‘(A) no continuing disability review conducted

14 by the Commissioner may be scheduled for the indi15 vidual solely as a result of the individual’s work ac16 tivity;

17 ‘‘(B) no work activity engaged in by the individ18 ual may be used as evidence that the individual is

19 no longer disabled; and

20 ‘‘(C) no cessation of work activity by the indi21 vidual may give rise to a presumption that the indi22 vidual is unable to engage in work.

23 ‘‘(2) An individual to which paragraph (1) applies

24 shall continue to be subject to—
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1 ‘‘(A) continuing disability reviews on a regularly

2 scheduled basis that is not triggered by work; and

3 ‘‘(B) termination of benefits under this title in

4 the event that the individual has earnings that ex5 ceed the level of earnings established by the Com6 missioner to represent substantial gainful activity.’’.

7 SEC. 212. EXPEDITED ELIGIBILITY DETERMINATIONS FOR

8 APPLICATIONS OF FORMER LONG-TERM

9 BENEFICIARIES THAT COMPLETED AN EX10 TENDED PERIOD OF ELIGIBILITY.

11 Section 223 of the Social Security Act (42 U.S.C.

12 423) is amended by adding at the end the following:

13 ‘‘Expedited Eligibility Determinations for Applications of

14 Former Long-Term Beneficiaries That Completed

15 an Extended Period of Eligibility

16 ‘‘(j) The Commissioner of Social Security shall estab17 lish a process for providing an expedited eligibility deter18 mination in the case of an application for disability insur19 ance benefits under this section, or for monthly insurance

20 benefits under section 202 based on another individual’s

21 disability, that is filed by an individual that previously—

22 ‘‘(1) received such benefits for at least 24

23 months; and
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1 ‘‘(2) engaged in substantial gainful activity dur2 ing the 36-month period following the end of a trial

3 work period under section 222(c).’’.

4 Subtitle C—Work Incentives

5 Planning, Assistance, and Outreach

6 SEC. 221. WORK INCENTIVES OUTREACH PROGRAM.

7 Part A of title XI of the Social Security Act (42

8 U.S.C. 1301 et seq.), as amended by section 201, is

9 amended by adding after section 1148 the following:

10 ‘‘WORK INCENTIVES OUTREACH PROGRAM

11 ‘‘SEC. 1149. (a) ESTABLISHMENT.—

12 ‘‘(1) IN GENERAL.—The Commissioner, in con13 sultation with the Work Incentives Advisory Panel

14 established under section 202 of the Work Incentives

15 Improvement Act of 1999, shall establish a commu16 nity-based work incentives planning and assistance

17 program for the purpose of disseminating accurate

18 information to disabled beneficiaries on work incen19 tives programs and issues related to such programs.

20 ‘‘(2) GRANTS, COOPERATIVE AGREEMENTS,

21 CONTRACTS, AND OUTREACH.—Under the program

22 established under this section, the Commissioner

23 shall—

24 ‘‘(A) establish a competitive program of

25 grants, cooperative agreements, or contracts to

26 provide benefits planning and assistance, in-
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1 cluding information on the availability of pro2 tection and advocacy services, to disabled bene3 ficiaries, including individuals participating in

4 the Ticket to Work and Self-Sufficiency Pro5 gram established under section 1148, the pro6 gram established under section 1619, and other

7 programs that are designed to encourage dis8 abled beneficiaries to work;

9 ‘‘(B) conduct directly, or through grants,

10 cooperative agreements, or contracts, ongoing

11 outreach efforts to disabled beneficiaries (and

12 to the families of such beneficiaries) who are

13 potentially eligible to participate in Federal or

14 State work incentive programs that are de15 signed to assist disabled beneficiaries to work,

16 including—

17 ‘‘(i) preparing and disseminating in18 formation explaining such programs; and

19 ‘‘(ii) working in cooperation with

20 other Federal, State, and private agencies

21 and nonprofit organizations that serve dis22 abled beneficiaries, and with agencies and

23 organizations that focus on vocational re24 habilitation and work-related training and

25 counseling;
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1 ‘‘(C) establish a corps of trained, acces2 sible, and responsive work incentives specialists

3 within the Social Security Administration who

4 will specialize in disability work incentives

5 under titles II and XVI for the purpose of dis6 seminating accurate information with respect to

7 inquiries and issues relating to work incentives

8 to—

9 ‘‘(i) disabled beneficiaries;

10 ‘‘(ii) benefit applicants under titles II

11 and XVI; and

12 ‘‘(iii) individuals or entities awarded

13 grants under subparagraphs (A) or (B);

14 and

15 ‘‘(D) provide—

16 ‘‘(i) training for the work incentive

17 specialists and the individuals providing

18 planning assistance described in subpara19 graph (C); and

20 ‘‘(ii) technical assistance to organiza21 tions and entities that are designed to en22 courage disabled beneficiaries to return to

23 work.

24 ‘‘(3) COORDINATION WITH OTHER PRO25 GRAMS.—The responsibilities of the Commissioner
77

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1 established under this section shall be coordinated

2 with other public and private programs that provide

3 information and assistance regarding rehabilitation

4 services and independent living supports and bene5 fits planning for disabled beneficiaries including the

6 program under section 1619, the plans for achieving

7 self-support program (PASS), and any other Federal

8 or State work incentives programs that are designed

9 to assist disabled beneficiaries, including educational

10 agencies that provide information and assistance re11 garding rehabilitation, school-to-work programs,

12 transition services (as defined in, and provided in ac13 cordance with, the Individuals with Disabilities Edu14 cation Act (20 U.S.C. 1400 et seq.)), and other serv15 ices.

16 ‘‘(b) CONDITIONS.—

17 ‘‘(1) SELECTION OF ENTITIES.—

18 ‘‘(A) APPLICATION.—An entity shall sub19 mit an application for a grant, cooperative

20 agreement, or contract to provide benefits plan21 ning and assistance to the Commissioner at

22 such time, in such manner, and containing such

23 information as the Commissioner may deter24 mine is necessary to meet the requirements of

25 this section.
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1 ‘‘(B) STATEWIDENESS.—The Commis2 sioner shall ensure that the planning, assist3 ance, and information described in paragraph

4 (2) shall be available on a statewide basis.

5 ‘‘(C) ELIGIBILITY OF STATES AND PRI6 VATE ORGANIZATIONS.—

7 ‘‘(i) IN GENERAL.—The Commissioner

8 may award a grant, cooperative agreement,

9 or contract under this section to a State or

10 a private agency or organization (other

11 than Social Security Administration Field

12 Offices and the State agency administering

13 the State medicaid program under title

14 XIX, including any agency or entity de15 scribed in clause (ii), that the Commis16 sioner determines is qualified to provide

17 the planning, assistance, and information

18 described in paragraph (2)).

19 ‘‘(ii) AGENCIES AND ENTITIES DE20 SCRIBED.—The agencies and entities de21 scribed in this clause are the following:

22 ‘‘(I) Any public or private agency

23 or organization (including Centers for

24 Independent Living established under

25 title VII of the Rehabilitation Act of
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1 1973, protection and advocacy organi2 zations, client assistance programs es3 tablished in accordance with section

4 112 of the Rehabilitation Act of 1973,

5 and State Developmental Disabilities

6 Councils established in accordance

7 with section 124 of the Developmental

8 Disabilities Assistance and Bill of

9 Rights Act (42 U.S.C. 6024)) that the

10 Commissioner determines satisfies the

11 requirements of this section.

12 ‘‘(II) The State agency admin13 istering the State program funded

14 under part A of title IV.

15 ‘‘(D) EXCLUSION FOR CONFLICT OF IN16 TEREST.—The Commissioner may not award a

17 grant, cooperative agreement, or contract under

18 this section to any entity that the Commissioner

19 determines would have a conflict of interest if

20 the entity were to receive a grant, cooperative

21 agreement, or contract under this section.

22 ‘‘(2) SERVICES PROVIDED.—A recipient of a

23 grant, cooperative agreement, or contract to provide

24 benefits planning and assistance shall select individ25 uals who will act as planners and provide informa-
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1 tion, guidance, and planning to disabled beneficiaries

2 on the—

3 ‘‘(A) availability and interrelation of any

4 Federal or State work incentives programs de5 signed to assist disabled beneficiaries that the

6 individual may be eligible to participate in;

7 ‘‘(B) adequacy of any health benefits cov8 erage that may be offered by an employer of

9 the individual and the extent to which other

10 health benefits coverage may be available to the

11 individual; and

12 ‘‘(C) availability of protection and advo13 cacy services for disabled beneficiaries and how

14 to access such services.

15 ‘‘(3) AMOUNT OF GRANTS, COOPERATIVE

16 AGREEMENTS, OR CONTRACTS.—

17 ‘‘(A) BASED ON POPULATION OF DIS18 ABLED BENEFICIARIES.—Subject to subpara19 graph (B), the Commissioner shall award a

20 grant, cooperative agreement, or contract under

21 this section to an entity based on the percent22 age of the population of the State where the en23 tity is located who are disabled beneficiaries.

24 ‘‘(B) LIMITATIONS.—
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1 ‘‘(i) PER GRANT.—No entity shall re2 ceive a grant, cooperative agreement, or

3 contract under this section for a fiscal year

4 that is less than $50,000 or more than

5 $300,000.

6 ‘‘(ii) TOTAL AMOUNT FOR ALL

7 GRANTS, COOPERATIVE AGREEMENTS, AND

8 CONTRACTS.—The total amount of all

9 grants, cooperative agreements, and con10 tracts awarded under this section for a fis11 cal year may not exceed $23,000,000.

12 ‘‘(4) ALLOCATION OF COSTS.—The costs of car13 rying out this section shall be paid from amounts

14 made available for the administration of title II and

15 amounts made available for the administration of

16 title XVI, and shall be allocated among those

17 amounts as appropriate.

18 ‘‘(c) DEFINITIONS.—In this section:

19 ‘‘(1) COMMISSIONER.—The term ‘Commis20 sioner’ means the Commissioner of Social Security.

21 ‘‘(2) DISABLED BENEFICIARY.—The term ‘dis22 abled beneficiary’ has the meaning given that term

23 in section 1148(k)(2).’’.
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1 SEC. 222. STATE GRANTS FOR WORK INCENTIVES ASSIST2 ANCE TO DISABLED BENEFICIARIES.

3 Part A of title XI of the Social Security Act (42

4 U.S.C. 1301 et seq.), as amended by section 221, is

5 amended by adding after section 1149 the following:

6 ‘‘STATE GRANTS FOR WORK INCENTIVES ASSISTANCE TO

7 DISABLED BENEFICIARIES

8 ‘‘SEC. 1150. (a) IN GENERAL.—Subject to subsection

9 (c), the Commissioner may make payments in each State

10 to the protection and advocacy system established pursu11 ant to part C of title I of the Developmental Disabilities

12 Assistance and Bill of Rights Act (42 U.S.C. 6041 et seq.)

13 for the purpose of providing services to disabled bene14 ficiaries.

15 ‘‘(b) SERVICES PROVIDED.—

16 ‘‘(1) IN GENERAL.—Subject to paragraph (2),

17 services provided to disabled beneficiaries pursuant

18 to a payment made under this section may include—

19 ‘‘(A) information and advice about obtain20 ing vocational rehabilitation and employment

21 services; and

22 ‘‘(B) advocacy or other services that a dis23 abled beneficiary may need to secure or regain

24 gainful employment.

25 ‘‘(c) APPLICATION.—In order to receive payments

26 under this section, a protection and advocacy system shall
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1 submit an application to the Commissioner, at such time,

2 in such form and manner, and accompanied by such infor3 mation and assurances as the Commissioner may require.

4 ‘‘(d) AMOUNT OF PAYMENTS.—

5 ‘‘(1) IN GENERAL.—Subject to the amount ap6 propriated for a fiscal year for making payments

7 under this section, a protection and advocacy system

8 shall not be paid an amount that is less than—

9 ‘‘(A) in the case of a protection and advo10 cacy system located in a State (including the

11 District of Columbia and Puerto Rico) other

12 than Guam, American Samoa, the United

13 States Virgin Islands, and the Commonwealth

14 of the Northern Mariana Islands, the greater

15 of—

16 ‘‘(i) $100,000; or

‘‘(ii) 1 17 ⁄3 of 1 percent of the amount

18 available for payments under this section;

19 and

20 ‘‘(B) in the case of a protection and advo21 cacy system located in Guam, American Samoa,

22 the United States Virgin Islands, and the Com23 monwealth of the Northern Mariana Islands,

24 $50,000.
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1 ‘‘(2) INFLATION ADJUSTMENT.—For each fiscal

2 year in which the total amount appropriated to carry

3 out this section exceeds the total amount appro4 priated to carry out this section in the preceding fis5 cal year, the Commissioner shall increase each mini6 mum payment under subparagraphs (A) and (B) of

7 paragraph (1) by a percentage equal to the percent8 age increase in the total amount appropriated to

9 carry out this section between the preceding fiscal

10 year and the fiscal year involved.

11 ‘‘(e) ANNUAL REPORT.—Each protection and advo12 cacy system that receives a payment under this section

13 shall submit an annual report to the Commissioner and

14 the Work Incentives Advisory Panel established under sec15 tion 202 of the Work Incentives Improvement Act of 1999

16 on the services provided to individuals by the system.

17 ‘‘(f) FUNDING.—

18 ‘‘(1) ALLOCATION OF PAYMENTS.—Payments

19 under this section shall be made from amounts made

20 available for the administration of title II and

21 amounts made available for the administration of

22 title XVI, and shall be allocated among those

23 amounts as appropriate.

24 ‘‘(2) CARRYOVER.—Any amounts allotted for

25 payment to a protection and advocacy system under
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1 this section for a fiscal year shall remain available

2 for payment to or on behalf of the protection and

3 advocacy system until the end of the succeeding fis4 cal year.

5 ‘‘(g) DEFINITIONS.—In this section:

6 ‘‘(1) COMMISSIONER.—The term ‘Commis7 sioner’ means the Commissioner of Social Security.

8 ‘‘(2) DISABLED BENEFICIARY.—The term ‘dis9 abled beneficiary’ has the meaning given that term

10 in section 1148(k)(2).

11 ‘‘(3) PROTECTION AND ADVOCACY SYSTEM.—

12 The term ‘protection and advocacy system’ means a

13 protection and advocacy system established pursuant

14 to part C of title I of the Developmental Disabilities

15 Assistance and Bill of Rights Act (42 U.S.C. 6041

16 et seq.).’’.

17 TITLE III—DEMONSTRATION

18 PROJECTS AND STUDIES

19 SEC. 301. EXTENSION OF DISABILITY INSURANCE PRO20 GRAM DEMONSTRATION PROJECT AUTHOR21 ITY.

22 Section 505 of the Social Security Disability Amend23 ments of 1980 (42 U.S.C. 1310 note) is amended—

24 (1) in subsection (a)(1)—
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1 (A) by striking ‘‘and (B)’’ and inserting ‘‘,

2 (B)’’;

3 (B) by inserting ‘‘, and (C) implementing

4 sliding scale benefit offsets using variations in

5 the amount of the offset as a proportion of

6 earned income, the duration of the offset pe7 riod, and the method of determining the

8 amount of income earned by the beneficiaries,

9 and using state-of-the-art information tech10 nology and electronic funds transfer technology

11 to streamline the reporting of data and the im12 plementation of the offsets, and developing and

13 making available to beneficiaries, their families,

14 guardians, and advocates, through the Internet

15 information regarding work incentives and as16 sistance for beneficiaries to make informed deci17 sions regarding work,’’ after ‘‘rehabilitation),’’;

18 and

19 (C) by adding at the end the following:

20 ‘‘The Commissioner may expand the scope of

21 any such demonstration project to include any

22 group of applicants for benefits under such pro23 gram with impairments which may reasonably

24 be presumed to be disabling for purposes of

25 such demonstration project, and may limit any
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1 such demonstration project to any such group

2 of applicants, subject to the terms of such dem3 onstration project which shall define the extent

4 of any such presumption.’’;

5 (2) in subsection (a)(3), by striking ‘‘June 10,

6 1996’’ and inserting ‘‘June 10, 2001’’;

7 (3) in subsection (a)(4), by inserting ‘‘and on or

8 before October 1, 2000,’’ after ‘‘1995,’’; and

9 (4) in subsection (c), by striking ‘‘October 1,

10 1996’’ and inserting ‘‘October 1, 2002’’.

11 SEC. 302. DEMONSTRATION PROJECTS PROVIDING FOR RE12 DUCTIONS IN DISABILITY INSURANCE BENE13 FITS BASED ON EARNINGS.

14 (a) AUTHORITY.—The Commissioner of Social Secu15 rity shall conduct demonstration projects for the purpose

16 of evaluating, through the collection of data, a program

17 for title II disability beneficiaries (as defined in section

18 1148(k)(3) of the Social Security Act) under which each

19 $1 of benefits payable under section 223, or under section

20 202 based on the beneficiary’s disability, is reduced for

21 each $2 of such beneficiary’s earnings that is above a level

22 to be determined by the Commissioner. Such projects shall

23 be conducted at a number of localities which the Commis24 sioner shall determine is sufficient to adequately evaluate

25 the appropriateness of national implementation of such a
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1 program. Such projects shall identify reductions in Fed2 eral expenditures that may result from the permanent im3 plementation of such a program.

4 (b) SCOPE AND SCALE AND MATTERS TO BE DETER5 MINED.—

6 (1) IN GENERAL.—The demonstration projects

7 developed under subsection (a) shall be of sufficient

8 duration, shall be of sufficient scope, and shall be

9 carried out on a wide enough scale to permit a thor10 ough evaluation of the project to determine—

11 (A) the effects, if any, of induced entry

12 into the project and reduced exit from the

13 project;

14 (B) the extent, if any, to which the project

15 being tested is affected by whether it is in oper16 ation in a locality within an area under the ad17 ministration of the Ticket to Work and Self18 Sufficiency Program established under section

19 1148 of the Social Security Act; and

20 (C) the savings that accrue to the Federal

21 Old-Age and Survivors Insurance Trust Fund,

22 the Federal Disability Insurance Trust Fund,

23 and other Federal programs under the project

24 being tested.
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1 The Commissioner shall take into account advice

2 provided by the Work Incentives Advisory Panel pur3 suant to section 202(b)(2)(B).

4 (2) ADDITIONAL MATTERS.—The Commissioner

5 shall also determine with respect to each project—

6 (A) the annual cost (including net cost) of

7 the project and the annual cost (including net

8 cost) that would have been incurred in the ab9 sence of the project;

10 (B) the determinants of return to work, in11 cluding the characteristics of the beneficiaries

12 who participate in the project; and

13 (C) the employment outcomes, including

14 wages, occupations, benefits, and hours worked,

15 of beneficiaries who return to work as a result

16 of participation in the project.

17 The Commissioner may include within the matters

18 evaluated under the project the merits of trial work

19 periods and periods of extended eligibility.

20 (c) WAIVERS.—The Commissioner may waive compli21 ance with the benefit provisions of title II of the Social

22 Security Act, and the Secretary of Health and Human

23 Services may waive compliance with the benefit require24 ments of title XVIII of that Act, insofar as is necessary

25 for a thorough evaluation of the alternative methods under
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1 consideration. No such project shall be actually placed in

2 operation unless at least 90 days prior thereto a written

3 report, prepared for purposes of notification and informa4 tion only and containing a full and complete description

5 thereof, has been transmitted by the Commissioner to the

6 Committee on Ways and Means of the House of Rep7 resentatives and to the Committee on Finance of the Sen8 ate. Periodic reports on the progress of such projects shall

9 be submitted by the Commissioner to such committees.

10 When appropriate, such reports shall include detailed rec11 ommendations for changes in administration or law, or

12 both, to carry out the objectives stated in subsection (a).

13 (d) INTERIM REPORTS.—Not later than 2 years after

14 the date of enactment of this Act, and annually thereafter,

15 the Commissioner of Social Security shall submit to Con16 gress an interim report on the progress of the demonstra17 tion projects carried out under this subsection together

18 with any related data and materials which the Commis19 sioner of Social Security may consider appropriate.

20 (e) FINAL REPORT.—The Commissioner of Social Se21 curity shall submit to Congress a final report with respect

22 to all demonstration projects carried out under this section

23 not later than 1 year after their completion.

24 (f) EXPENDITURES.—Expenditures made for dem25 onstration projects under this section shall be made from
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1 the Federal Disability Insurance Trust Fund and the Fed2 eral Old-Age and Survivors Insurance Trust Fund, as de3 termined appropriate by the Commissioner of Social Secu4 rity, and from the Federal Hospital Insurance Trust Fund

5 and the Federal Supplementary Medical Insurance Trust

6 Fund, as determined appropriate by the Secretary of

7 Health and Human Services, to the extent provided in ad8 vance in appropriation Acts.

9 SEC. 303. SENSE OF CONGRESS REGARDING ADDITIONAL

10 DEMONSTRATION PROJECTS.

11 It is the sense of Congress that the Commissioner

12 of Social Security and the Secretary of Health and Human

13 Services should establish additional demonstration

14 projects to assist individuals with disabilities to engage in

15 work.

16 SEC. 304. STUDIES AND REPORTS.

17 (a) STUDY BY GENERAL ACCOUNTING OFFICE OF

18 EXISTING DISABILITY-RELATED EMPLOYMENT INCEN19 TIVES.—

20 (1) STUDY.—As soon as practicable after the

21 date of enactment of this Act, the Comptroller Gen22 eral of the United States shall undertake a study to

23 assess existing tax credits and other disability-relat24 ed employment incentives under the Americans with

25 Disabilities Act of 1990 and other Federal laws. In
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1 such study, the Comptroller General shall specifically

2 address the extent to which such credits and other

3 incentives would encourage employers to hire and re4 tain individuals with disabilities.

5 (2) REPORT.—Not later than 3 years after the

6 date of enactment of this Act, the Comptroller Gen7 eral shall transmit to the Committee on Ways and

8 Means of the House of Representatives and the

9 Committee on Finance of the Senate a written re10 port presenting the results of the Comptroller Gen11 eral’s study conducted pursuant to this subsection,

12 together with such recommendations for legislative

13 or administrative changes as the Comptroller Gen14 eral determines are appropriate.

15 (b) STUDY BY GENERAL ACCOUNTING OFFICE OF

16 EXISTING COORDINATION OF THE DI AND SSI PROGRAMS

17 AS THEY RELATE TO INDIVIDUALS ENTERING OR LEAV18 ING CONCURRENT ENTITLEMENT.—

19 (1) STUDY.—As soon as practicable after the

20 date of enactment of this Act, the Comptroller Gen21 eral of the United States shall undertake a study to

22 evaluate the coordination under current law of the

23 disability insurance program under title II of the So24 cial Security Act and the supplemental security in25 come program under title XVI of that Act, as such
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1 programs relate to individuals entering or leaving

2 concurrent entitlement under such programs. In

3 such study, the Comptroller General shall specifically

4 address the effectiveness of work incentives under

5 such programs with respect to such individuals and

6 the effectiveness of coverage of such individuals

7 under titles XVIII and XIX of the Social Security

8 Act.

9 (2) REPORT.—Not later than 3 years after the

10 date of enactment of this Act, the Comptroller Gen11 eral shall transmit to the Committee on Ways and

12 Means of the House of Representatives and the

13 Committee on Finance of the Senate a written re14 port presenting the results of the Comptroller Gen15 eral’s study conducted pursuant to this subsection,

16 together with such recommendations for legislative

17 or administrative changes as the Comptroller Gen18 eral determines are appropriate.

19 (c) STUDY BY GENERAL ACCOUNTING OFFICE OF

20 THE IMPACT OF THE SUBSTANTIAL GAINFUL ACTIVITY

21 LIMIT ON RETURN TO WORK.—

22 (1) STUDY.—As soon as practicable after the

23 date of enactment of this Act, the Comptroller Gen24 eral of the United States shall undertake a study of

25 the substantial gainful activity level applicable as of
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1 that date to recipients of benefits under section 223

2 of the Social Security Act (42 U.S.C. 423) and

3 under section 202 of that Act (42 U.S.C. 402) on

4 the basis of a recipient having a disability, and the

5 effect of such level as a disincentive for those recipi6 ents to return to work. In the study, the Comptroller

7 General also shall address the merits of increasing

8 the substantial gainful activity level applicable to

9 such recipients of benefits and the rationale for not

10 yearly indexing that level to inflation.

11 (2) REPORT.—Not later than 2 years after the

12 date of enactment of this Act, the Comptroller Gen13 eral shall transmit to the Committee on Ways and

14 Means of the House of Representatives and the

15 Committee on Finance of the Senate a written re16 port presenting the results of the Comptroller Gen17 eral’s study conducted pursuant to this subsection,

18 together with such recommendations for legislative

19 or administrative changes as the Comptroller Gen20 eral determines are appropriate.
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1 TITLE IV—TECHNICAL

2 AMENDMENTS

3 SEC. 401. TECHNICAL AMENDMENTS RELATING TO DRUG

4 ADDICTS AND ALCOHOLICS.

5 (a) CLARIFICATION RELATING TO THE EFFECTIVE

6 DATE OF THE DENIAL OF SOCIAL SECURITY DISABILITY

7 BENEFITS TO DRUG ADDICTS AND ALCOHOLICS.—Sec8 tion 105(a)(5) of the Contract with America Advancement

9 Act of 1996 (Public Law 104–121; 110 Stat. 853) is

10 amended—

11 (1) in subparagraph (A), by striking ‘‘by the

12 Commissioner of Social Security’’ and ‘‘by the Com13 missioner’’; and

14 (2) by adding at the end the following:

15 ‘‘(D) For purposes of this paragraph, an

16 individual’s claim, with respect to benefits

17 under title II of the Social Security Act based

18 on disability, which has been denied in whole

19 before the date of enactment of this Act, may

20 not be considered to be finally adjudicated be21 fore such date if, on or after such date—

22 ‘‘(i) there is pending a request for ei23 ther administrative or judicial review with

24 respect to such claim, or
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1 ‘‘(ii) there is pending, with respect to

2 such claim, a readjudication by the Com3 missioner of Social Security pursuant to

4 relief in a class action or implementation

5 by the Commissioner of a court remand

6 order.

7 ‘‘(E) Notwithstanding the provisions of

8 this paragraph, with respect to any individual

9 for whom the Commissioner of Social Security

10 does not perform the entitlement redetermina11 tion before the date prescribed in subparagraph

12 (C), the Commissioner shall perform such enti13 tlement redetermination in lieu of a continuing

14 disability review whenever the Commissioner de15 termines that the individual’s entitlement is

16 subject to redetermination based on the preced17 ing provisions of this paragraph, and the provi18 sions of section 223(f) of the Social Security

19 Act shall not apply to such redetermination.’’.

20 (b) CORRECTION TO EFFECTIVE DATE OF PROVI21 SIONS CONCERNING REPRESENTATIVE PAYEES AND

22 TREATMENT REFERRALS OF SOCIAL SECURITY BENE23 FICIARIES WHO ARE DRUG ADDICTS AND ALCOHOLICS.—

24 Section 105(a)(5)(B) of the Contract with America Ad-
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1 vancement Act of 1996 (42 U.S.C. 405 note) is amended

2 to read as follows:

3 ‘‘(B) The amendments made by para4 graphs (2) and (3) shall take effect on July 1,

5 1996, with respect to any individual—

6 ‘‘(i) whose claim for benefits is finally

7 adjudicated on or after the date of enact8 ment of this Act; or

9 ‘‘(ii) whose entitlement to benefits is

10 based on an entitlement redetermination

11 made pursuant to subparagraph (C).’’.

12 (c) EFFECTIVE DATES.—The amendments made by

13 this section shall take effect as if included in the enact14 ment of section 105 of the Contract with America Ad15 vancement Act of 1996 (Public Law 104–121; 110 Stat.

16 852 et seq.).

17 SEC. 402. TREATMENT OF PRISONERS.

18 (a) IMPLEMENTATION OF PROHIBITION AGAINST

19 PAYMENT OF TITLE II BENEFITS TO PRISONERS.—

20 (1) IN GENERAL.—Section 202(x)(3) of the So21 cial Security Act (42 U.S.C. 402(x)(3)) is

22 amended—

23 (A) by inserting ‘‘(A)’’ after ‘‘(3)’’; and

24 (B) by adding at the end the following:
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1 ‘‘(B)(i) The Commissioner shall enter into an agree2 ment under this subparagraph with any interested State

3 or local institution comprising a jail, prison, penal institu4 tion, or correctional facility, or comprising any other insti5 tution a purpose of which is to confine individuals as de6 scribed in paragraph (1)(A)(ii). Under such agreement—

7 ‘‘(I) the institution shall provide to the Com8 missioner, on a monthly basis and in a manner spec9 ified by the Commissioner, the names, Social Secu10 rity account numbers, dates of birth, confinement

11 commencement dates, and, to the extent available to

12 the institution, such other identifying information

13 concerning the individuals confined in the institution

14 as the Commissioner may require for the purpose of

15 carrying out paragraph (1); and

16 ‘‘(II) the Commissioner shall pay to the institu17 tion, with respect to information described in sub18 clause (I) concerning each individual who is confined

19 therein as described in paragraph (1)(A), who re20 ceives a benefit under this title for the month pre21 ceding the first month of such confinement, and

22 whose benefit under this title is determined by the

23 Commissioner to be not payable by reason of con24 finement based on the information provided by the

25 institution, $400 (subject to reduction under clause
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1 (ii)) if the institution furnishes the information to

2 the Commissioner within 30 days after the date such

3 individual’s confinement in such institution begins,

4 or $200 (subject to reduction under clause (ii)) if

5 the institution furnishes the information after 30

6 days after such date but within 90 days after such

7 date.

8 ‘‘(ii) The dollar amounts specified in clause (i)(II)

9 shall be reduced by 50 percent if the Commissioner is also

10 required to make a payment to the institution with respect

11 to the same individual under an agreement entered into

12 under section 1611(e)(1)(I).

13 ‘‘(iii) The provisions of section 552a of title 5, United

14 States Code, shall not apply to any agreement entered into

15 under clause (i) or to information exchanged pursuant to

16 such agreement.

17 ‘‘(iv) There is authorized to be transferred from the

18 Federal Old-Age and Survivors Insurance Trust Fund and

19 the Federal Disability Insurance Trust Fund, as appro20 priate, such sums as may be necessary to enable the Com21 missioner to make payments to institutions required by

22 clause (i)(II).

23 ‘‘(v) The Commissioner is authorized to provide, on

24 a reimbursable basis, information obtained pursuant to

25 agreements entered into under clause (i) to any agency
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1 administering a Federal or federally assisted cash, food,

2 or medical assistance program for eligibility purposes.’’.

3 (2) EFFECTIVE DATE.—The amendments made

4 by this subsection shall apply to individuals whose

5 period of confinement in an institution commences

6 on or after the first day of the fourth month begin7 ning after the month in which this Act is enacted.

8 (b) ELIMINATION OF TITLE II REQUIREMENT THAT

9 CONFINEMENT STEM FROM CRIME PUNISHABLE BY IM10 PRISONMENT FOR MORE THAN 1 YEAR.—

11 (1) IN GENERAL.—Section 202(x)(1)(A) of the

12 Social Security Act (42 U.S.C. 402(x)(1)(A)) is

13 amended—

14 (A) in the matter preceding clause (i), by

15 striking ‘‘during’’ and inserting ‘‘throughout’’;

16 (B) in clause (i), by striking ‘‘an offense

17 punishable by imprisonment for more than 1

18 year (regardless of the actual sentence im19 posed)’’ and inserting ‘‘a criminal offense’’; and

20 (C) in clause (ii)(I), by striking ‘‘an of21 fense punishable by imprisonment for more

22 than 1 year’’ and inserting ‘‘a criminal of23 fense’’.

24 (2) EFFECTIVE DATE.—The amendments made

25 by this subsection shall apply to individuals whose
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1 period of confinement in an institution commences

2 on or after the first day of the fourth month begin3 ning after the month in which this Act is enacted.

4 (c) CONFORMING TITLE XVI AMENDMENTS.—

5 (1) FIFTY PERCENT REDUCTION IN TITLE XVI

6 PAYMENT IN CASE INVOLVING COMPARABLE TITLE II

7 PAYMENT.—Section 1611(e)(1)(I) of the Social Se8 curity Act (42 U.S.C. 1382(e)(1)(I)) is amended—

9 (A) in clause (i)(II), by inserting ‘‘(subject

10 to reduction under clause (ii))’’ after ‘‘$400’’

11 and after ‘‘$200’’;

12 (B) by redesignating clauses (ii) and (iii)

13 as clauses (iii) and (iv), respectively; and

14 (C) by inserting after clause (i) the follow15 ing:

16 ‘‘(ii) The dollar amounts specified in clause (i)(II)

17 shall be reduced by 50 percent if the Commissioner is also

18 required to make a payment to the institution with respect

19 to the same individual under an agreement entered into

20 under section 202(x)(3)(B).’’.

21 (2) EXPANSION OF CATEGORIES OF INSTITU22 TIONS ELIGIBLE TO ENTER INTO AGREEMENTS WITH

23 THE COMMISSIONER.—Section 1611(e)(1)(I)(i) of

24 the Social Security Act (42 U.S.C. 1382(e)(1)(I)(i))

25 is amended in the matter preceding subclause (I) by
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1 striking ‘‘institution’’ and all that follows through

2 ‘‘section 202(x)(1)(A),’’ and inserting ‘‘institution

3 comprising a jail, prison, penal institution, or correc4 tional facility, or with any other interested State or

5 local institution a purpose of which is to confine in6 dividuals as described in section 202(x)(1)(A)(ii),’’.

7 (3) EFFECTIVE DATE.—The amendments made

8 by this subsection shall take effect as if included in

9 the enactment of section 203(a) of the Personal Re10 sponsibility and Work Opportunity Reconciliation

11 Act of 1996 (Public Law 104–193; 110 Stat. 2186).

12 The reference to section 202(x)(1)(A)(ii) of the So13 cial Security Act in section 1611(e)(1)(I)(i) of the

14 Social Security Act as amended by paragraph (2)

15 shall be deemed a reference to such section

16 202(x)(1)(A)(ii) as amended by subsection (b)(1)(C).

17 (d) CONTINUED DENIAL OF BENEFITS TO SEX OF18 FENDERS REMAINING CONFINED TO PUBLIC INSTITU19 TIONS UPON COMPLETION OF PRISON TERM.—

20 (1) IN GENERAL.—Section 202(x)(1)(A) of the

21 Social Security Act (42 U.S.C. 402(x)(1)(A)) is

22 amended—

23 (A) in clause (i), by striking ‘‘or’’ at the

24 end;
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1 (B) in clause (ii)(IV), by striking the pe2 riod and inserting ‘‘, or’’; and

3 (C) by adding at the end the following:

4 ‘‘(iii) immediately upon completion of confine5 ment as described in clause (i) pursuant to convic6 tion of a criminal offense an element of which is sex7 ual activity, is confined by court order in an institu8 tion at public expense pursuant to a finding that the

9 individual is a sexually dangerous person or a sexual

10 predator or a similar finding.’’.

11 (2) CONFORMING AMENDMENT.—Section

12 202(x)(1)(B)(ii) of the Social Security Act (42

13 U.S.C. 402(x)(1)(B)(ii)) is amended by striking

14 ‘‘clause (ii)’’ and inserting ‘‘clauses (ii) and (iii)’’.

15 (3) EFFECTIVE DATE.—The amendments made

16 by this subsection shall apply with respect to bene17 fits for months ending after the date of enactment

18 of this Act.

19 SEC 403. REVOCATION BY MEMBERS OF THE CLERGY OF

20 EXEMPTION FROM SOCIAL SECURITY COV21 ERAGE.

22 (a) IN GENERAL.—Notwithstanding section

23 1402(e)(4) of the Internal Revenue Code of 1986, any ex24 emption which has been received under section 1402(e)(1)

25 of such Code by a duly ordained, commissioned, or li-
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1 censed minister of a church, a member of a religious order,

2 or a Christian Science practitioner, and which is effective

3 for the taxable year in which this Act is enacted, may be

4 revoked by filing an application therefore (in such form

5 and manner, and with such official, as may be prescribed

6 in regulations made under chapter 2 of such Code), if such

7 application is filed no later than the due date of the Fed8 eral income tax return (including any extension thereof)

9 for the applicant’s second taxable year beginning after De10 cember 31, 1999. Any such revocation shall be effective

11 (for purposes of chapter 2 of the Internal Revenue Code

12 of 1986 and title II of the Social Security Act), as speci13 fied in the application, either with respect to the appli14 cant’s first taxable year beginning after December 31,

15 1999, or with respect to the applicant’s second taxable

16 year beginning after such date, and for all succeeding tax17 able years; and the applicant for any such revocation may

18 not thereafter again file application for an exemption

19 under such section 1402(e)(1). If the application is filed

20 after the due date of the applicant’s Federal income tax

21 return for a taxable year and is effective with respect to

22 that taxable year, it shall include or be accompanied by

23 payment in full of an amount equal to the total of the

24 taxes that would have been imposed by section 1401 of

25 the Internal Revenue Code of 1986 with respect to all of
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1 the applicant’s income derived in that taxable year which

2 would have constituted net earnings from self-employment

3 for purposes of chapter 2 of such Code (notwithstanding

4 paragraph (4) or (5) of section 1402(c) of such Code) ex5 cept for the exemption under section 1402(e)(1) of such

6 Code.

7 (b) EFFECTIVE DATE.—Subsection (a) shall apply

8 with respect to service performed (to the extent specified

9 in such subsection) in taxable years beginning after De10 cember 31, 1999, and with respect to monthly insurance

11 benefits payable under title II of the Social Security Act

12 on the basis of the wages and self-employment income of

13 any individual for months in or after the calendar year

14 in which such individual’s application for revocation (as

15 described in such subsection) is effective (and lump-sum

16 death payments payable under such title on the basis of

17 such wages and self-employment income in the case of

18 deaths occurring in or after such calendar year).

19 SEC. 404. ADDITIONAL TECHNICAL AMENDMENT RELATING

20 TO COOPERATIVE RESEARCH OR DEM21 ONSTRATION PROJECTS UNDER TITLES II

22 AND XVI.

23 (a) IN GENERAL.—Section 1110(a)(3) of the Social

24 Security Act (42 U.S.C. 1310(a)(3)) is amended by strik25 ing ‘‘title XVI’’ and inserting ‘‘title II or XVI’’.
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1 (b) EFFECTIVE DATE.—The amendment made by

2 subsection (a) shall take effect as if included in the enact3 ment of the Social Security Independence and Program

4 Improvements Act of 1994 (Public Law 103–296; 108

5 Stat. 1464).

6 SEC. 405. AUTHORIZATION FOR STATE TO PERMIT ANNUAL

7 WAGE REPORTS.

8 (a) IN GENERAL.—Section 1137(a)(3) of the Social

9 Security Act (42 U.S.C. 1320b–7(a)(3)) is amended by

10 inserting before the semicolon the following: ‘‘, and except

11 that in the case of wage reports with respect to domestic

12 service employment, a State may permit employers (as so

13 defined) that make returns with respect to such employ14 ment on a calendar year basis pursuant to section 3510

15 of the Internal Revenue Code of 1986 to make such re16 ports on an annual basis’’.

17 (b) TECHNICAL AMENDMENTS.—Section 1137(a)(3)

18 of the Social Security Act (42 U.S.C. 1320b–7(a)(3)) is

19 amended—

20 (1) by striking ‘‘(as defined in section

21 453A(a)(2)(B)(iii))’’; and

22 (2) by inserting ‘‘(as defined in section

23 453A(a)(2)(B))’’ after ‘‘employers’’ .
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1 (c) EFFECTIVE DATE.—The amendments made by

2 this section shall apply to wage reports required to be sub3 mitted on and after the date of enactment of this Act.

Æ