Calendar No. 80

106TH CONGRESS

1ST SESSION S. 331

[Report No. 106–37]

A BILL

To amend the Social Security Act to expand the

and for other purposes.viduals with meaningful opportunities to work,cial Security Administration to provide such indito Work and Self-Sufficiency Program in the Soindividuals with disabilities, to establish a Ticketavailability of health care coverage for working

MARCH 26, 1999

Reported with an amendment
II

Calendar No. 80

106TH CONGRESS

1ST SESSION S. 331

[Report No. 106–37]

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,

Mr. WELLSTONE, Mr. BOND, Mr. CONRAD, Mr. SPECTER, Mr. BRYAN,

Mr. BAUCUS, Mr. AKAKA, Mr. SCHUMER, Mr. COCHRAN, Mr. DOMENICI,

Mr. DORGAN, Mr. LEVIN, Mr. LEAHY, Mr. SMITH of Oregon, Mrs. LINCOLN, Mr. BIDEN, Mr. BYRD, Mr. MACK, Mr. EDWARDS, Mr. WYDEN,

Ms. LANDRIEU, Mr. KOHL, Mr. LAUTENBERG, Mr. BAYH, Mr. FRIST,

Mr. LIEBERMAN, Mr. CRAPO, Mr. ALLARD, Mr. FEINGOLD, Mr. GORTON,

Mr. ABRAHAM, and Mr. CAMPBELL)

MARCH 26, 1999

Reported under authority of the order of the Senate of March 25, 1999, by

Mr. ROTH, with an amendment
2

•S 331 RS

[Strike out all after the enacting clause and insert the part printed in italic]

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,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

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

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

7 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
3

•S 331 RS

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.

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.
4

•S 331 RS

1 (3) Americans with significant disabilities often

2 are unable to obtain health care insurance that pro3 vides coverage of the services and supports that en4 able them to live independently and enter or rejoin

5 the workforce. Personal assistance services (such as

6 attendant services, personal assistance with trans7 portation to and from work, reader services, job

8 coaches, and related assistance) remove many of the

9 barriers between significant disability and work.

10 Coverage for such services, as well as for prescrip11 tion drugs, durable medical equipment, and basic

12 health care are powerful and proven tools for indi13 viduals with significant disabilities to obtain and re14 tain employment.

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

16 losing health care and related services is one of the

17 greatest barriers keeping the individuals from maxi18 mizing their employment, earning potential, and

19 independence.

20 (5) Individuals with disabilities who are bene21 ficiaries under title II or XVI of the Social Security

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

23 medicare or medicaid coverage that is linked to their

24 cash benefits, a risk that is an equal, or greater,
5

•S 331 RS

1 work disincentive than the loss of cash benefits asso2 ciated with working.

(6) Currently, less than 1 3 ⁄2 of 1 percent of so4 cial security disability insurance and supplemental

5 security income beneficiaries cease to receive benefits

6 as a result of employment.

7 (7) Beneficiaries have cited the lack of adequate

8 employment training and placement services as an

9 additional barrier to employment.

(8) If an additional 1 10 ⁄2 of 1 percent of the cur11 rent social security disability insurance (DI) and

12 supplemental security income (SSI) recipients were

13 to cease receiving benefits as a result of employ14 ment, the savings to the Social Security Trust

15 Funds in cash assistance would total

16 $3,500,000,000 over the worklife of the individuals.

17 (b) PURPOSES.—The purposes of this Act are as fol18 lows:

19 (1) To provide health care and employment

20 preparation and placement services to individuals

21 with disabilities that will enable those individuals to

22 reduce their dependency on cash benefit programs.

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

24 allowing individuals with disabilities to purchase
6

•S 331 RS

1 medicaid coverage that is necessary to enable such

2 individuals to maintain employment.

3 (3) To provide individuals with disabilities the

4 option of maintaining medicare coverage while work5 ing.

6 (4) To establish a return to work ticket pro7 gram that will allow individuals with disabilities to

8 seek the services necessary to obtain and retain em9 ployment and reduce their dependency on cash ben10 efit programs.

11 TITLE I—EXPANDED AVAIL12 ABILITY OF HEALTH CARE

13 SERVICES

14 SEC. 101. EXPANDING STATE OPTIONS UNDER MEDICAID

15 FOR WORKERS WITH DISABILITIES.

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

17 AND RESOURCE LIMITATIONS FOR WORKERS WITH DIS18 ABILITIES BUYING INTO MEDICAID.—Section

19 1902(a)(10)(A)(ii) of the Social Security Act (42 U.S.C.

20 1396a(a)(10)(A)(ii)) is amended—

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

22 end;

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

24 end; and

25 (3) by adding at the end the following:
7

•S 331 RS

1 ‘‘(XV) who, but for earnings in

2 excess of the limit established under

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

4 limitations on assets, resources, or un5 earned income that may be set by the

6 State, would be considered to be re7 ceiving supplemental security income

8 (subject, notwithstanding section

9 1916, to payment of premiums or

10 other cost-sharing charges (set on a

11 sliding scale based on income that the

12 State may determine and that may re13 quire an individual with income that

14 exceeds 250 percent of the income of15 ficial poverty line (as defined by the

16 Office of Management and Budget,

17 and revised annually in accordance

18 with section 673(2) of the Omnibus

19 Budget Reconciliation Act of 1981)

20 applicable to a family of the size in21 volved to pay an amount equal to 100

22 percent of the premium cost for pro23 viding medical assistance to the indi24 vidual), so long as any such premiums

25 or other cost-sharing charges are the
8

•S 331 RS

1 same as any premiums or other cost2 sharing charges imposed for individ3 uals described in subclause (XVI));’’.

4 (b) STATE OPTION TO EXPAND OPPORTUNITIES FOR

5 WORKERS WITH DISABILITIES TO BUY INTO MED6 ICAID.—

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

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

9 1396a(a)(10)(A)(ii)), as amended by subsection (a),

10 is amended—

11 (A) in subclause (XIV), by striking ‘‘or’’ at

12 the end;

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

14 the end; and

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

16 ‘‘(XVI) who are working individ17 uals with disabilities described in sec18 tion 1905(v) (subject, notwithstanding

19 section 1916, to payment of premiums

20 or other cost-sharing charges (set on

21 a sliding scale based on income) that

22 the State may determine so long as

23 any such premiums or other cost-shar24 ing charges are the same as any pre25 miums or other cost-sharing charges
9

•S 331 RS

1 imposed for individuals described in

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

3 provides medical assistance to individ4 uals described in subclause (XV);’’.

5 (2) DEFINITION OF WORKING INDIVIDUALS

6 WITH DISABILITIES.—Section 1905 of the Social Se7 curity Act (42 U.S.C. 1396d) is amended by adding

8 at the end the following:

9 ‘‘(v)(1) The term ‘working individuals with disabil10 ities’ means individuals ages 16 through 64 who—

11 ‘‘(A) by reason of medical improvement, cease

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

13 1614(a)(3) at the time of a regularly scheduled con14 tinuing disability review but who continue to have a

15 severe medically determinable impairment; and

16 ‘‘(B) are employed.

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

18 the individual—

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

20 wage requirement under section 6 of the Fair Labor

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

22 40 hours per month; or

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

24 substantial and reasonable threshold criteria for
10

•S 331 RS

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

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

3 (3) CONFORMING AMENDMENT.—Section

4 1905(a) of the Social Security Act (42 U.S.C.

5 1396d(a)) is amended in the matter preceding para6 graph (1)—

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

8 end;

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

10 end; and

11 (C) by inserting after clause (xi), the fol12 lowing:

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

14 (c) PROHIBITION AGAINST SUPPLANTATION OF

15 STATE FUNDS; MAINTENANCE OF EFFORT REQUIRE16 MENT; CONDITION FOR APPROVAL OF STATE PLAN

17 AMENDMENT.—

18 (1) NO SUPPLANTATION OF STATE FUNDS.—

19 Federal funds paid to a State for medical assistance

20 provided to an individual described in subclause

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

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

23 must be used to supplement but not supplant the

24 level of State funds expended as of October 1, 1998
11

•S 331 RS

1 for programs to enable working individuals with dis2 abilities to work.

3 (2) MAINTENANCE OF EFFORT.—With respect

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

5 paid to a State for medical assistance provided to an

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

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

8 (42 U.S.C. 1396a(a)(10)(A)(ii)) for such fiscal year

9 quarter if the Secretary of Health and Human Serv10 ices determines that the total of the State expendi11 tures for programs to enable working individuals

12 with disabilities to work for the preceding fiscal year

13 quarter is less than the total of such expenditures

14 for the same fiscal year quarter of the preceding fis15 cal year.

16 (3) CONDITION FOR APPROVAL OF STATE PLAN

17 AMENDMENTS.—No State plan amendment that pro18 poses to provide medical assistance to an individual

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

20 1902(a)(10)(A)(ii) of the Social Security Act (42

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

22 the chief executive officer of the State certifies to

23 the Secretary of Health and Human Services that

24 the plan, as so amended, will satisfy the require25 ments of paragraphs (1) and (2) of this subsection.
12

•S 331 RS

1 (d) EFFECTIVE DATE.—

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

3 this section shall apply on and after October 1,

4 1999.

5 (2) EXTENSION OF EFFECTIVE DATE FOR

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

7 plan under title XIX of the Social Security Act

8 which the Secretary of Health and Human Services

9 determines requires State legislation in order for the

10 plan to meet the additional requirements imposed by

11 the amendments made by this section, the State

12 plan shall not be regarded as failing to comply with

13 the requirements of this section solely on the basis

14 of its failure to meet these additional requirements

15 before the first day of the first calendar quarter be16 ginning after the close of the first regular session of

17 the State legislature that begins after the date of en18 actment of this Act. For purposes of the previous

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

20 legislative session, each year of the session is consid21 ered to be a separate regular session of the State

22 legislature.
13

•S 331 RS

1 SEC. 102. CONTINUATION OF MEDICARE COVERAGE FOR

2 WORKING INDIVIDUALS WITH DISABILITIES.

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

4 of the Social Security Act (42 U.S.C. 1395i–2a) is amend5 ed by adding at the end the following:

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

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

8 subsection, this section shall apply—

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

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

11 date of enactment of the Work Incentives Im12 provement Act of 1999’’ after ‘‘ends’’; and

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

14 before the period; and

15 ‘‘(B) without regard to subsections (c)(2)(D)

16 and (d).

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

18 of this subsection is enrolled in the medicare program

19 under this section and would, without regard to paragraph

20 (1), otherwise satisfy the eligibility requirements for en21 rollment set forth in subsection (a) shall be deemed to sat22 isfy the requirement of subsection (a)(2)(C) of that section

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

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

25 medicare program under this section.
14

•S 331 RS

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

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

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

4 individual who is enrolled in the medicare program under

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

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

7 date of enactment of this Act, the Comptroller General

8 of the United States shall submit a report to Congress

9 that—

10 (1) examines the effectiveness and cost of sec11 tion 1818A of the Social Security Act (42 U.S.C.

12 1395i–2a) as amended by subsection (a); and

13 (2) recommends whether that section should

14 continue to be applied, as so amended, beyond the

15 10-year period described in subsection (e) of that

16 section.

17 SEC. 103. GRANTS TO DEVELOP AND ESTABLISH STATE IN18 FRASTRUCTURES TO SUPPORT WORKING IN19 DIVIDUALS WITH DISABILITIES.

20 (a) ESTABLISHMENT.—

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

22 Human Services (in this section referred to as the

23 ‘‘Secretary’’) shall award grants described in sub24 section (b) to States to support the design, establish25 ment, and operation of State infrastructures that
15

•S 331 RS

1 provide items and services to support working indi2 viduals with disabilities. A State may submit an ap3 plication for a grant authorized under this section at

4 such time, in such manner, and containing such in5 formation as the Secretary may determine.

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

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

8 District of Columbia, Puerto Rico, Guam, the

9 United States Virgin Islands, American Samoa, and

10 the Commonwealth of the Northern Mariana Is11 lands.

12 (b) GRANTS FOR INFRASTRUCTURE AND OUT13 REACH.—

14 (1) IN GENERAL.—Out of the funds appro15 priated under subsection (e), the Secretary shall

16 award grants to States to—

17 (A) support the establishment, implemen18 tation, and operation of the State infrastruc19 tures described in subsection (a); and

20 (B) conduct outreach campaigns regarding

21 the existence of such infrastructures.

22 (2) ELIGIBILITY FOR GRANTS.—

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

24 grant under this subsection unless—
16

•S 331 RS

1 (i) the State has an approved amend2 ment to the State plan under title XIX of

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

4 seq.) that—

5 (I) provides medical assistance

6 under such plan to individuals de7 scribed in section

8 1902(a)(10)(A)(ii)(XV) of the Social

9 Security Act (42 U.S.C.

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

11 (II) provides medical assistance

12 under such plan to individuals de13 scribed in subclauses (XV) and (XVI)

14 of section 1902(a)(10)(A)(ii) of the

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

16 1396a(a)(10)(A)(ii)); and

17 (ii) the State demonstrates to the sat18 isfaction of the Secretary that the State

19 makes personal assistance services avail20 able under the State plan under title XIX

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

22 et seq.) to the extent necessary to enable

23 individuals described in subclause (I) or

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

25 determined under section 1905(v)(2) of the
17

•S 331 RS

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

2 1396d(v)(2)).

3 (B) DEFINITION OF PERSONAL ASSIST4 ANCE SERVICES.—In this paragraph, the term

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

6 services, provided by 1 or more persons, de7 signed to assist an individual with a disability

8 to perform daily activities on and off the job

9 that the individual would typically perform if

10 the individual did not have a disability. Such

11 services shall be designed to increase the indi12 vidual’s control in life and ability to perform ev13 eryday activities on or off the job.

14 (3) DETERMINATION OF AWARDS.—

15 (A) IN GENERAL.—Subject to subpara16 graph (B), the Secretary shall determine a for17 mula for awarding grants to States under this

18 section that provides special consideration to

19 States that provide medical assistance under

20 title XIX of the Social Security Act to individ21 uals described in section

22 1902(a)(10)(A)(ii)(XVI) of that Act (42 U.S.C.

23 1396a(a)(10)(A)(ii)(XVI)).

24 (B) AWARD LIMITS.—
18

•S 331 RS

1 (i) MINIMUM AWARDS.—No State that

2 submits an approved application for fund3 ing under this section shall receive a grant

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

5 (ii) MAXIMUM AWARDS.—No State

6 that submits an approved application for

7 funding under this section shall receive a

8 grant for a fiscal year that exceeds 15 per9 cent of the total expenditures by the State

10 (including the reimbursed Federal share of

11 such expenditures) for medical assistance

12 for individuals eligible under subclause

13 (XV) or (XVI) of section

14 1902(a)(10)(A)(ii), whichever is greater, as

15 estimated by the State and approved by

16 the Secretary.

17 (c) AVAILABILITY OF FUNDS.—

18 (1) FUNDS ALLOCATED TO STATES.—Funds al19 located to a State under a grant made under this

20 section for a fiscal year shall remain available until

21 expended.

22 (2) FUNDS NOT ALLOCATED TO STATES.—

23 Funds not allocated to States in the fiscal year for

24 which they are appropriated shall remain available

25 in succeeding fiscal years for allocation by the Sec-
19

•S 331 RS

1 retary using the allocation formula established by

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

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

4 under this section shall submit an annual report to the

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

6 Each report shall include the percentage increase in the

7 number of title II disability beneficiaries, as defined in sec8 tion 1148(k)(3) of the Social Security Act (as amended

9 by section 201) in the State, and title XVI disability bene10 ficiaries, as defined in section 1148(k)(4) of the Social Se11 curity Act (as so amended) in the State who return to

12 work.

13 (e) APPROPRIATION.—Out of any funds in the Treas14 ury not otherwise appropriated, there is authorized to be

15 appropriated and there is appropriated to make grants

16 under this section—

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

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

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

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

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

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

23 amount appropriated for the preceding fiscal year

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

25 Consumer Price Index for All Urban Consumers
20

•S 331 RS

1 (United States city average) for the preceding fiscal

2 year.

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

4 2009, the Secretary of Health and Human Services, in

5 consultation with the Work Incentives Advisory Panel es6 tablished under section 202, shall submit a recommenda7 tion to the Committee on Commerce and the Committee

8 on Ways and Means of the House of Representatives and

9 the Committee on Finance of the Senate regarding wheth10 er the grant program established under this section should

11 be continued after fiscal year 2010.

12 SEC. 104. DEMONSTRATION OF COVERAGE OF WORKERS

13 WITH POTENTIALLY SEVERE DISABILITIES.

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

15 Secretary of Health and Human Services (in this section

16 referred to as the ‘‘Secretary’’) for approval of a dem17 onstration project (in this section referred to as a ‘‘dem18 onstration project’’) under which up to a specified max19 imum number of individuals who are workers with a po20 tentially severe disability (as defined in subsection (b)(1))

21 are provided medical assistance equal to that provided

22 under section 1905(a) of the Social Security Act (42

23 U.S.C. 1396d(a)) to individuals described in section

24 1902(a)(10)(A)(ii)(XV) of that Act (42 U.S.C.

25 1396a(a)(10)(A)(ii)(XV)).
21

•S 331 RS

1 (b) WORKER WITH A POTENTIALLY SEVERE DIS2 ABILITY DEFINED.—For purposes of this section—

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

4 potentially severe disability’’ means, with respect to

5 a demonstration project, an individual who—

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

7 of age;

8 (B) has a specific physical or mental im9 pairment that, as defined by the State under

10 the demonstration project, is reasonably ex11 pected, but for the receipt of items and services

12 described in section 1905(a) of the Social Secu13 rity Act, to become blind or disabled (as defined

14 under section 1614(a) of the Social Security

15 Act); and

16 (C) is employed (as defined in paragraph

17 (2)).

18 (2) DEFINITION OF EMPLOYED.—An individual

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

20 (A) is earning at least the applicable min21 imum wage requirement under section 6 of the

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

23 working at least 40 hours per month; or

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

25 substantial and reasonable threshold criteria for
22

•S 331 RS

1 hours of work, wages, or other measures, as de2 fined under the demonstration project and ap3 proved by the Secretary.

4 (c) APPROVAL OF DEMONSTRATION PROJECTS.—

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

6 the Secretary shall approve applications under sub7 section (a) that meet the requirements of paragraph

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

9 Secretary may require. The Secretary may waive the

10 requirement of section 1902(a)(1) of the Social Se11 curity Act (42 U.S.C. 1396a(a)(1)) to allow for sub12 State demonstrations.

13 (2) TERMS AND CONDITIONS OF DEMONSTRA14 TION PROJECTS.—The Secretary may not approve a

15 demonstration project under this section unless the

16 State provides assurances satisfactory to the Sec17 retary that the following conditions are or will be

18 met:

19 (A) ELECTION OF OPTIONAL CATEGORY.—

20 The State has elected to provide coverage under

21 its plan under title XIX of the Social Security

22 Act of individuals described in section

23 1902(a)(10)(A)(ii)(XV) of the Social Security

24 Act.
23

•S 331 RS

1 (B) MAINTENANCE OF STATE EFFORT.—

2 Federal funds paid to a State pursuant to this

3 section must be used to supplement, but not

4 supplant, the level of State funds expended for

5 workers with potentially severe disabilities

6 under programs in effect for such individuals at

7 the time the demonstration project is approved

8 under this section.

9 (C) INDEPENDENT EVALUATION.—The

10 State provides for an independent evaluation of

11 the project.

12 (3) LIMITATIONS ON FEDERAL FUNDING.—

13 (A) APPROPRIATION.—Out of any funds in

14 the Treasury not otherwise appropriated, there

15 is authorized to be appropriated and there is

16 appropriated to carry out this section—

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

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

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

20 and

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

22 (B) LIMITATION ON PAYMENTS.—In no

23 case may—
24

•S 331 RS

1 (i) the aggregate amount of payment

2 made by the Secretary to States under this

3 section exceed $300,000,000; or

4 (ii) payment be provided by the Sec5 retary for a fiscal year after fiscal year

6 2005.

7 (C) FUNDS ALLOCATED TO STATES.—The

8 Secretary shall allocate funds to States based

9 on their applications and the availability of

10 funds. Funds allocated to a State under a grant

11 made under this section for a fiscal year shall

12 remain available until expended.

13 (D) FUNDS NOT ALLOCATED TO STATES.—

14 Funds not allocated to States in the fiscal year

15 for which they are appropriated shall remain

16 available in succeeding fiscal years for alloca17 tion by the Secretary using the allocation for18 mula established under this section.

19 (E) PAYMENTS TO STATES.—Subject to

20 the succeeding provisions of this section, the

21 Secretary shall pay to each State with a dem22 onstration project approved under this section,

23 from its allocation under subparagraph (C), an

24 amount for each quarter equal to the Federal

25 medical assistance percentage (as defined in
25

•S 331 RS

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

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

3 for medical assistance provided to workers with

4 a potentially severe disability.

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

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

7 title XIX of the Social Security Act.

8 TITLE II—TICKET TO WORK AND

9 SELF-SUFFICIENCY AND RE10 LATED PROVISIONS

11 Subtitle A—Ticket to Work and

12 Self-Sufficiency

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

14 SELF-SUFFICIENCY PROGRAM.

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

16 Security Act (42 U.S.C. 1301 et seq.) is amended by add17 ing after section 1147 (as added by section 8 of the Non18 citizen Benefit Clarification and Other Technical Amend19 ments Act of 1998 (Public Law 105–306; 112 Stat.

20 2928)) the following:

21 ‘‘TICKET TO WORK AND SELF-SUFFICIENCY PROGRAM

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

23 shall establish a Ticket to Work and Self-Sufficiency Pro24 gram, under which a disabled beneficiary may use a ticket

25 to work and self-sufficiency issued by the Commissioner

26 in accordance with this section to obtain employment serv-
26

•S 331 RS

1 ices, vocational rehabilitation services, or other support

2 services from an employment network which is of the bene3 ficiary’s choice and which is willing to provide such serv4 ices to the beneficiary.

5 ‘‘(b) TICKET SYSTEM.—

6 ‘‘(1) DISTRIBUTION OF TICKETS.—The Com7 missioner may issue a ticket to work and self-suffi8 ciency to disabled beneficiaries for participation in

9 the Program.

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

11 beneficiary holding a ticket to work and self-suffi12 ciency may assign the ticket to any employment net13 work of the beneficiary’s choice which is serving

14 under the Program and is willing to accept the as15 signment.

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

17 paragraph (1) shall consist of a document which evi18 dences the Commissioner’s agreement to pay (as

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

20 which is serving under the Program and to which

21 such ticket is assigned by the beneficiary, for such

22 employment services, vocational rehabilitation serv23 ices, and other support services as the employment

24 network may provide to the beneficiary.
27

•S 331 RS

1 ‘‘(4) PAYMENTS TO EMPLOYMENT NET2 WORKS.—The Commissioner shall pay an employ3 ment network under the Program in accordance with

4 the outcome payment system under subsection

5 (h)(2) or under the outcome-milestone payment sys6 tem under subsection (h)(3) (whichever is elected

7 pursuant to subsection (h)(1)). An employment net8 work may not request or receive compensation for

9 such services from the beneficiary.

10 ‘‘(c) STATE PARTICIPATION.—

11 ‘‘(1) IN GENERAL.—Each State agency admin12 istering or supervising the administration of the

13 State plan approved under title I of the Rehabilita14 tion Act of 1973 may elect to participate in the Pro15 gram as an employment network with respect to a

16 disabled beneficiary. If the State agency does elect

17 to participate in the Program, the State agency also

18 shall elect to be paid under the outcome payment

19 system or the outcome-milestone payment system in

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

21 disabled beneficiary that the State agency does not

22 elect to have participate in the Program, the State

23 agency shall be paid for services provided to that

24 beneficiary under the system for payment applicable

25 under section 222(d) and subsections (d) and (e) of
28

•S 331 RS

1 section 1615. The Commissioner shall provide for

2 periodic opportunities for exercising such elections

3 (and revocations).

4 ‘‘(2) EFFECT OF PARTICIPATION BY STATE

5 AGENCY.—

6 ‘‘(A) STATE AGENCIES PARTICIPATING.—

7 In any case in which a State agency described

8 in paragraph (1) elects under that paragraph to

9 participate in the Program, the employment

10 services, vocational rehabilitation services, and

11 other support services which, upon assignment

12 of tickets to work and self-sufficiency, are pro13 vided to disabled beneficiaries by the State

14 agency acting as an employment network shall

15 be governed by plans for vocational rehabilita16 tion services approved under title I of the Reha17 bilitation Act of 1973.

18 ‘‘(B) STATE AGENCIES ADMINISTERING

19 MATERNAL AND CHILD HEALTH SERVICES PRO20 GRAMS.—Subparagraph (A) shall not apply

21 with respect to any State agency administering

22 a program under title V of this Act.

23 ‘‘(3) SPECIAL REQUIREMENTS APPLICABLE TO

24 CROSS-REFERRAL TO CERTAIN STATE AGENCIES.—
29

•S 331 RS

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

2 an employment network has been assigned a

3 ticket to work and self-sufficiency by a disabled

4 beneficiary, no State agency shall be deemed re5 quired, under this section, title I of the Work6 force Investment Act of 1998, title I of the Re7 habilitation Act of 1973, or a State plan ap8 proved under such title, to accept any referral

9 of such disabled beneficiary from such employ10 ment network unless such employment network

11 and such State agency have entered into a writ12 ten agreement that meets the requirements of

13 subparagraph (B). Any beneficiary who has as14 signed a ticket to work and self-sufficiency to

15 an employment network that has not entered

16 into such a written agreement with such a

17 State agency may not access vocational rehabili18 tation services under title I of the Rehabilita19 tion Act of 1973 until such time as the bene20 ficiary is reassigned to a State vocational reha21 bilitation agency by the Program Manager.

22 ‘‘(B) TERMS OF AGREEMENT.—An agree23 ment required by subparagraph (A) shall speci24 fy, in accordance with regulations prescribed

25 pursuant to subparagraph (C)—
30

•S 331 RS

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

2 employment network holding the ticket will

3 provide to the State agency—

4 ‘‘(I) reimbursement for costs in5 curred in providing services described

6 in subparagraph (A) to the disabled

7 beneficiary; and

8 ‘‘(II) other amounts from pay9 ments made by the Commissioner to

10 the employment network pursuant to

11 subsection (h); and

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

13 required by such regulations.

14 ‘‘(C) REGULATIONS.—The Commissioner

15 and the Secretary of Education shall jointly

16 prescribe regulations specifying the terms of

17 agreements required by subparagraph (A) and

18 otherwise necessary to carry out the provisions

19 of this paragraph.

20 ‘‘(D) PENALTY.—No payment may be

21 made to an employment network pursuant to

22 subsection (h) in connection with services pro23 vided to any disabled beneficiary if such em24 ployment network makes referrals described in

25 subparagraph (A) in violation of the terms of
31

•S 331 RS

1 the agreement required under subparagraph (A)

2 or without having entered into such an agree3 ment.

4 ‘‘(d) RESPONSIBILITIES OF THE COMMISSIONER.—

5 ‘‘(1) SELECTION AND QUALIFICATIONS OF PRO6 GRAM MANAGERS.—The Commissioner shall enter

7 into agreements with 1 or more organizations in the

8 private or public sector for service as a program

9 manager to assist the Commissioner in admin10 istering the Program. Any such program manager

11 shall be selected by means of a competitive bidding

12 process, from among organizations in the private or

13 public sector with available expertise and experience

14 in the field of vocational rehabilitation and employ15 ment services.

16 ‘‘(2) TENURE, RENEWAL, AND EARLY TERMI17 NATION.—Each agreement entered into under para18 graph (1) shall provide for early termination upon

19 failure to meet performance standards which shall be

20 specified in the agreement and which shall be

21 weighted to take into account any performance in

22 prior terms. Such performance standards shall

23 include—

24 ‘‘(A) measures for ease of access by bene25 ficiaries to services; and
32

•S 331 RS

1 ‘‘(B) measures for determining the extent

2 to which failures in obtaining services for bene3 ficiaries fall within acceptable parameters, as

4 determined by the Commissioner.

5 ‘‘(3) PRECLUSION FROM DIRECT PARTICIPA6 TION IN DELIVERY OF SERVICES IN OWN SERVICE

7 AREA.—Agreements under paragraph (1) shall

8 preclude—

9 ‘‘(A) direct participation by a program

10 manager in the delivery of employment services,

11 vocational rehabilitation services, or other sup12 port services to beneficiaries in the service area

13 covered by the program manager’s agreement;

14 and

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

16 a financial interest in an employment network

17 or service provider which provides services in a

18 geographic area covered under the program

19 manager’s agreement.

20 ‘‘(4) SELECTION OF EMPLOYMENT NET21 WORKS.—

22 ‘‘(A) IN GENERAL.—The Commissioner

23 shall select and enter into agreements with em24 ployment networks for service under the Pro25 gram. Such employment networks shall be in
33

•S 331 RS

1 addition to State agencies serving as employ2 ment networks pursuant to elections under sub3 section (c).

4 ‘‘(B) ALTERNATE PARTICIPANTS.—In any

5 State where the Program is being implemented,

6 the Commissioner shall enter into an agreement

7 with any alternate participant that is operating

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

9 State as of the date of enactment of this section

10 and chooses to serve as an employment network

11 under the Program.

12 ‘‘(5) TERMINATION OF AGREEMENTS WITH EM13 PLOYMENT NETWORKS.—The Commissioner shall

14 terminate agreements with employment networks for

15 inadequate performance, as determined by the Com16 missioner.

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

18 shall provide for such periodic reviews as are nec19 essary to provide for effective quality assurance in

20 the provision of services by employment networks.

21 The Commissioner shall solicit and consider the

22 views of consumers and the program manager under

23 which the employment networks serve and shall con24 sult with providers of services to develop perform25 ance measurements. The Commissioner shall ensure
34

•S 331 RS

1 that the results of the periodic reviews are made

2 available to beneficiaries who are prospective service

3 recipients as they select employment networks. The

4 Commissioner shall ensure that the periodic surveys

5 of beneficiaries receiving services under the Program

6 are designed to measure customer service satisfac7 tion.

8 ‘‘(7) DISPUTE RESOLUTION.—The Commis9 sioner shall provide for a mechanism for resolving

10 disputes between beneficiaries and employment net11 works, between program managers and employment

12 networks, and between program managers and pro13 viders of services. The Commissioner shall afford a

14 party to such a dispute a reasonable opportunity for

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

16 ‘‘(e) PROGRAM MANAGERS.—

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

18 conduct tasks appropriate to assist the Commis19 sioner in carrying out the Commissioner’s duties in

20 administering the Program.

21 ‘‘(2) RECRUITMENT OF EMPLOYMENT NET22 WORKS.—A program manager shall recruit, and rec23 ommend for selection by the Commissioner, employ24 ment networks for service under the Program. The

25 program manager shall carry out such recruitment
35

•S 331 RS

1 and provide such recommendations, and shall mon2 itor all employment networks serving in the Program

3 in the geographic area covered under the program

4 manager’s agreement, to the extent necessary and

5 appropriate to ensure that adequate choices of serv6 ices are made available to beneficiaries. Employment

7 networks may serve under the Program only pursu8 ant to an agreement entered into with the Commis9 sioner under the Program incorporating the applica10 ble provisions of this section and regulations there11 under, and the program manager shall provide and

12 maintain assurances to the Commissioner that pay13 ment by the Commissioner to employment networks

14 pursuant to this section is warranted based on com15 pliance by such employment networks with the terms

16 of such agreement and this section. The program

17 manager shall not impose numerical limits on the

18 number of employment networks to be recommended

19 pursuant to this paragraph.

20 ‘‘(3) FACILITATION OF ACCESS BY BENE21 FICIARIES TO EMPLOYMENT NETWORKS.—A pro22 gram manager shall facilitate access by beneficiaries

23 to employment networks. The program manager

24 shall ensure that each beneficiary is allowed changes

25 in employment networks for good cause, as deter-
36

•S 331 RS

1 mined by the Commissioner, without being deemed

2 to have rejected services under the Program. The

3 program manager shall establish and maintain lists

4 of employment networks available to beneficiaries

5 and shall make such lists generally available to the

6 public. The program manager shall ensure that all

7 information provided to disabled beneficiaries pursu8 ant to this paragraph is provided in accessible for9 mats.

10 ‘‘(4) ENSURING AVAILABILITY OF ADEQUATE

11 SERVICES.—The program manager shall ensure that

12 employment services, vocational rehabilitation serv13 ices, and other support services are provided to

14 beneficiaries throughout the geographic area covered

15 under the program manager’s agreement, including

16 rural areas.

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

18 program manager shall take such measures as are

19 necessary to ensure that sufficient employment net20 works are available and that each beneficiary receiv21 ing services under the Program has reasonable ac22 cess to employment services, vocational rehabilitation

23 services, and other support services. Services pro24 vided under the Program may include case manage25 ment, work incentives planning, supported employ-
37

•S 331 RS

1 ment, career planning, career plan development, vo2 cational assessment, job training, placement, fol3 lowup services, and such other services as may be

4 specified by the Commissioner under the Program.

5 The program manager shall ensure that such serv6 ices are available in each service area.

7 ‘‘(f) EMPLOYMENT NETWORKS.—

8 ‘‘(1) QUALIFICATIONS FOR EMPLOYMENT NET9 WORKS.—

10 ‘‘(A) IN GENERAL.—Each employment net11 work serving under the Program shall consist of

12 an agency or instrumentality of a State (or a

13 political subdivision thereof) or a private entity

14 that assumes responsibility for the coordination

15 and delivery of services under the Program to

16 individuals assigning to the employment net17 work tickets to work and self-sufficiency issued

18 under subsection (b).

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

20 employment network serving under the Pro21 gram may consist of a one-stop delivery system

22 established under subtitle B of title I of the

23 Workforce Investment Act of 1998.

24 ‘‘(C) COMPLIANCE WITH SELECTION CRI25 TERIA.—No employment network may serve
38

•S 331 RS

1 under the Program unless it meets and main2 tains compliance with both general selection cri3 teria (such as professional and educational

4 qualifications (where applicable)) and specific

5 selection criteria (such as substantial expertise

6 and experience in providing relevant employ7 ment services and supports).

8 ‘‘(D) SINGLE OR ASSOCIATED PROVIDERS

9 ALLOWED.—An employment network shall con10 sist of either a single provider of such services

11 or of an association of such providers organized

12 so as to combine their resources into a single

13 entity. An employment network may meet the

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

15 services directly, or by entering into agreements

16 with other individuals or entities providing ap17 propriate employment services, vocational reha18 bilitation services, or other support services.

19 ‘‘(2) REQUIREMENTS RELATING TO PROVISION

20 OF SERVICES.—Each employment network serving

21 under the Program shall be required under the

22 terms of its agreement with the Commissioner to—

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

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

25 to ensure that employment services, vocational
39

•S 331 RS

1 rehabilitation services, and other support serv2 ices provided under the Program by, or under

3 agreements entered into with, the employment

4 network are provided under appropriate indi5 vidual work plans meeting the requirements of

6 subsection (g).

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

8 employment network shall meet financial reporting

9 requirements as prescribed by the Commissioner.

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

11 employment network shall prepare periodic reports,

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

13 period specific outcomes achieved with respect to

14 specific services provided by the employment net15 work. Such reports shall conform to a national

16 model prescribed under this section. Each employ17 ment network shall provide a copy of the latest re18 port issued by the employment network pursuant to

19 this paragraph to each beneficiary upon enrollment

20 under the Program for services to be received

21 through such employment network. Upon issuance of

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

23 shall be maintained in the files of the employment

24 network. The program manager shall ensure that

25 copies of all such reports issued under this para-
40

•S 331 RS

1 graph are made available to the public under reason2 able terms.

3 ‘‘(g) INDIVIDUAL WORK PLANS.—

4 ‘‘(1) REQUIREMENTS.—Each employment net5 work shall—

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

7 to ensure that employment services, vocational

8 rehabilitation services, and other support serv9 ices provided under the Program by, or under

10 agreements entered into with, the employment

11 network are provided under appropriate indi12 vidual work plans that meet the requirements of

13 subparagraph (C);

14 ‘‘(B) develop and implement each such in15 dividual work plan in partnership with each

16 beneficiary receiving such services in a manner

17 that affords the beneficiary the opportunity to

18 exercise informed choice in selecting an employ19 ment goal and specific services needed to

20 achieve that employment goal;

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

22 includes at least—

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

24 developed with the beneficiary;
41

•S 331 RS

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

2 supports that have been deemed necessary

3 for the beneficiary to accomplish that goal;

4 ‘‘(iii) a statement of any terms and

5 conditions related to the provision of such

6 services and supports; and

7 ‘‘(iv) a statement of understanding re8 garding the beneficiary’s rights under the

9 Program (such as the right to retrieve the

10 ticket to work and self-sufficiency if the

11 beneficiary is dissatisfied with the services

12 being provided by the employment net13 work) and remedies available to the indi14 vidual, including information on the avail15 ability of advocacy services and assistance

16 in resolving disputes through the State

17 grant program authorized under section

18 1150;

19 ‘‘(D) provide a beneficiary the opportunity

20 to amend the individual work plan if a change

21 in circumstances necessitates a change in the

22 plan; and

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

24 work plan available to the beneficiary in, as ap-
42

•S 331 RS

1 propriate, an accessible format chosen by the

2 beneficiary.

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

4 A beneficiary’s individual work plan shall take effect

5 upon written approval by the beneficiary or a rep6 resentative of the beneficiary and a representative of

7 the employment network that, in providing such

8 written approval, acknowledges assignment of the

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

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

11 ‘‘(1) ELECTION OF PAYMENT SYSTEM BY EM12 PLOYMENT NETWORKS.—

13 ‘‘(A) IN GENERAL.—The Program shall

14 provide for payment authorized by the Commis15 sioner to employment networks under either an

16 outcome payment system or an outcome-mile17 stone payment system. Each employment net18 work shall elect which payment system will be

19 utilized by the employment network, and, for

20 such period of time as such election remains in

21 effect, the payment system so elected shall be

22 utilized exclusively in connection with such em23 ployment network (except as provided in sub24 paragraph (B)).
43

•S 331 RS

1 ‘‘(B) NO CHANGE IN METHOD OF PAY2 MENT FOR BENEFICIARIES WITH TICKETS AL3 READY ASSIGNED TO THE EMPLOYMENT NET4 WORKS.—Any election of a payment system by

5 an employment network that would result in a

6 change in the method of payment to the em7 ployment network for services provided to a

8 beneficiary who is receiving services from the

9 employment network at the time of the election

10 shall not be effective with respect to payment

11 for services provided to that beneficiary and the

12 method of payment previously selected shall

13 continue to apply with respect to such services.

14 ‘‘(2) OUTCOME PAYMENT SYSTEM.—

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

16 system shall consist of a payment structure gov17 erning employment networks electing such sys18 tem under paragraph (1)(A) which meets the

19 requirements of this paragraph.

20 ‘‘(B) PAYMENTS MADE DURING OUTCOME

21 PAYMENT PERIOD.—The outcome payment sys22 tem shall provide for a schedule of payments to

23 an employment network in connection with each

24 individual who is a beneficiary for each month

25 during the individual’s outcome payment period
44

•S 331 RS

1 for which benefits (described in paragraphs (3)

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

3 such individual because of work or earnings.

4 ‘‘(C) COMPUTATION OF PAYMENTS TO EM5 PLOYMENT NETWORK.—The payment schedule

6 of the outcome payment system shall be de7 signed so that—

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

9 months during the outcome payment pe10 riod for which benefits (described in para11 graphs (3) and (4) of subsection (k)) are

12 not payable is equal to a fixed percentage

13 of the payment calculation base for the cal14 endar year in which such month occurs;

15 and

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

17 percentage which does not exceed 40 per18 cent.

19 ‘‘(3) OUTCOME-MILESTONE PAYMENT SYS20 TEM.—

21 ‘‘(A) IN GENERAL.—The outcome-mile22 stone payment system shall consist of a pay23 ment structure governing employment networks

24 electing such system under paragraph (1)(A)
45

•S 331 RS

1 which meets the requirements of this para2 graph.

3 ‘‘(B) EARLY PAYMENTS UPON ATTAIN4 MENT OF MILESTONES IN ADVANCE OF OUT5 COME PAYMENT PERIODS.—The outcome-mile6 stone payment system shall provide for 1 or

7 more milestones with respect to beneficiaries re8 ceiving services from an employment network

9 under the Program that are directed toward the

10 goal of permanent employment. Such milestones

11 shall form a part of a payment structure that

12 provides, in addition to payments made during

13 outcome payment periods, payments made prior

14 to outcome payment periods in amounts based

15 on the attainment of such milestones.

16 ‘‘(C) LIMITATION ON TOTAL PAYMENTS TO

17 EMPLOYMENT NETWORK.—The payment sched18 ule of the outcome-milestone payment system

19 shall be designed so that the total of the pay20 ments to the employment network with respect

21 to each beneficiary is less than, on a net

22 present value basis (using an interest rate de23 termined by the Commissioner that appro24 priately reflects the cost of funds faced by pro25 viders), the total amount to which payments to
46

•S 331 RS

1 the employment network with respect to the

2 beneficiary would be limited if the employment

3 network were paid under the outcome payment

4 system.

5 ‘‘(4) DEFINITIONS.—In this subsection:

6 ‘‘(A) PAYMENT CALCULATION BASE.—The

7 term ‘payment calculation base’ means, for any

8 calendar year—

9 ‘‘(i) in connection with a title II dis10 ability beneficiary, the average disability

11 insurance benefit payable under section

12 223 for all beneficiaries for months during

13 the preceding calendar year; and

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

15 disability beneficiary (who is not concur16 rently a title II disability beneficiary), the

17 average payment of supplemental security

18 income benefits based on disability payable

19 under title XVI (excluding State sup20 plementation) for months during the pre21 ceding calendar year to all beneficiaries

22 who have attained age 18 but have not at23 tained age 65.

24 ‘‘(B) OUTCOME PAYMENT PERIOD.—The

25 term ‘outcome payment period’ means, in con-
47

•S 331 RS

1 nection with any individual who had assigned a

2 ticket to work and self-sufficiency to an employ3 ment network under the Program, a period—

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

5 ending after the date on which such ticket

6 was assigned to the employment network,

7 for which benefits (described in paragraphs

8 (3) and (4) of subsection (k)) are not pay9 able to such individual by reason of en10 gagement in substantial gainful activity or

11 by reason of earnings from work activity;

12 and

13 ‘‘(ii) ending with the 60th month

14 (consecutive or otherwise), ending after

15 such date, for which such benefits are not

16 payable to such individual by reason of en17 gagement in substantial gainful activity or

18 by reason of earnings from work activity.

19 ‘‘(5) PERIODIC REVIEW AND ALTERATIONS OF

20 PRESCRIBED SCHEDULES.—

21 ‘‘(A) PERCENTAGES AND PERIODS.—The

22 Commissioner shall periodically review the per23 centage specified in paragraph (2)(C), the total

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

25 and the period of time specified in paragraph
48

•S 331 RS

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

2 such permissible payments, and such period

3 provide an adequate incentive for employment

4 networks to assist beneficiaries to enter the

5 workforce, while providing for appropriate

6 economies. The Commissioner may alter such

7 percentage, such total permissible payments, or

8 such period of time to the extent that the Com9 missioner determines, on the basis of the Com10 missioner’s review under this paragraph, that

11 such an alteration would better provide the in12 centive and economies described in the pre13 ceding sentence.

14 ‘‘(B) NUMBER AND AMOUNTS OF MILE15 STONE PAYMENTS.—The Commissioner shall

16 periodically review the number and amounts of

17 milestone payments established by the Commis18 sioner pursuant to this section to determine

19 whether they provide an adequate incentive for

20 employment networks to assist beneficiaries to

21 enter the workforce, taking into account infor22 mation provided to the Commissioner by pro23 gram managers, the Work Incentives Advisory

24 Panel established under section 202 of the

25 Work Incentives Improvement Act of 1999, and
49

•S 331 RS

1 other reliable sources. The Commissioner may

2 from time to time alter the number and

3 amounts of milestone payments initially estab4 lished by the Commissioner pursuant to this

5 section to the extent that the Commissioner de6 termines that such an alteration would allow an

7 adequate incentive for employment networks to

8 assist beneficiaries to enter the workforce. Such

9 alteration shall be based on information pro10 vided to the Commissioner by program man11 agers, the Work Incentives Advisory Panel es12 tablished under section 202 of the Work Incen13 tives Improvement Act of 1999, or other reli14 able sources.

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

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

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

18 issued under this section, the Commissioner (and any ap19 plicable State agency) may not initiate a continuing dis20 ability review or other review under section 221 of whether

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

22 under title XVI similar to any such review under section

23 221.

24 ‘‘(j) ALLOCATION OF COSTS.—
50

•S 331 RS

1 ‘‘(1) PAYMENTS TO EMPLOYMENT NET2 WORKS.—Payments to employment networks (in3 cluding State agencies that elect to participate in the

4 Program as an employment network) shall be made

5 from the Federal Old-Age and Survivors Insurance

6 Trust Fund or the Federal Disability Insurance

7 Trust Fund, as appropriate, in the case of ticketed

8 title II disability beneficiaries who return to work,

9 or from the appropriation made available for making

10 supplemental security income payments under title

11 XVI, in the case of title XVI disability beneficiaries

12 who return to work. With respect to ticketed bene13 ficiaries who concurrently are entitled to benefits

14 under title II and eligible for payments under title

15 XVI who return to work, the Commissioner shall al16 locate the cost of payments to employment networks

17 to which the tickets of such beneficiaries have been

18 assigned among such Trust Funds and appropria19 tion, as appropriate.

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

21 of administering this section (other than payments

22 to employment networks) shall be paid from

23 amounts made available for the administration of

24 title II and amounts made available for the adminis-
51

•S 331 RS

1 tration of title XVI, and shall be allocated among

2 those amounts as appropriate.

3 ‘‘(k) DEFINITIONS.—In this section:

4 ‘‘(1) COMMISSIONER.—The term ‘Commis5 sioner’ means the Commissioner of Social Security.

6 ‘‘(2) DISABLED BENEFICIARY.—The term ‘dis7 abled beneficiary’ means a title II disability bene8 ficiary or a title XVI disability beneficiary.

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

10 term ‘title II disability beneficiary’ means an indi11 vidual entitled to disability insurance benefits under

12 section 223 or to monthly insurance benefits under

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

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

15 disability beneficiary for each month for which such

16 individual is entitled to such benefits.

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

18 The term ‘title XVI disability beneficiary’ means an

19 individual eligible for supplemental security income

20 benefits under title XVI on the basis of blindness

21 (within the meaning of section 1614(a)(2)) or dis22 ability (within the meaning of section 1614(a)(3)).

23 An individual is a title XVI disability beneficiary for

24 each month for which such individual is eligible for

25 such benefits.
52

•S 331 RS

1 ‘‘(5) SUPPLEMENTAL SECURITY INCOME BEN2 EFIT UNDER TITLE XVI.—The term ‘supplemental

3 security income benefit under title XVI’ means a

4 cash benefit under section 1611 or 1619(a), and

5 does not include a State supplementary payment,

6 administered federally or otherwise.

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

8 date of enactment of this section, the Commissioner shall

9 prescribe such regulations as are necessary to carry out

10 the provisions of this section.

11 ‘‘(m) SUNSET OF PROGRAM.—The Program estab12 lished under this section shall terminate on September 30,

13 2004.’’.

14 (b) CONFORMING AMENDMENTS.—

15 (1) AMENDMENTS TO TITLE II.—

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

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

18 the end the following:

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

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

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

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

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

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

25 Act (42 U.S.C. 422(b)) is repealed.
53

•S 331 RS

1 (D) Section 225(b)(1) of the Social Secu2 rity Act (42 U.S.C. 425(b)(1)) is amended by

3 striking ‘‘a program of vocational rehabilitation

4 services’’ and inserting ‘‘a program consisting

5 of the Ticket to Work and Self-Sufficiency Pro6 gram under section 1148 or another program of

7 vocational rehabilitation services, employment

8 services, or other support services’’.

9 (2) AMENDMENTS TO TITLE XVI.—

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

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

12 as follows:

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

14 individual who—

15 ‘‘(1) has not attained age 16, and

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

17 under this title,

18 the Commissioner of Social Security shall make provision

19 for referral of such individual to the appropriate State

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

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

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

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

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

25 amended by striking ‘‘a program of vocational
54

•S 331 RS

1 rehabilitation services’’ and inserting ‘‘a pro2 gram consisting of the Ticket to Work and Self3 Sufficiency Program under section 1148 or an4 other program of vocational rehabilitation serv5 ices, employment services, or other support

6 services’’.

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

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

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

10 (ii) by adding at the end the fol11 lowing:

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

13 and other reviews under this title similar to reviews under

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

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

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

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

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

19 date of enactment of this Act.

20 (d) GRADUATED IMPLEMENTATION OF PROGRAM.—

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

22 the date of enactment of this Act, the Commissioner

23 of Social Security shall commence implementation of

24 the amendments made by this section (other than

25 paragraphs (1)(C) and (2)(B) of subsection (b)) in
55

•S 331 RS

1 graduated phases at phase-in sites selected by the

2 Commissioner. Such phase-in sites shall be selected

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

4 Ticket to Work and Self-Sufficiency Program, the

5 development and refinement of referral processes,

6 payment systems, computer linkages, management

7 information systems, and administrative processes

8 necessary to provide for full implementation of such

9 amendments. Subsection (c) shall apply with respect

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

11 without regard to this subsection.

12 (2) REQUIREMENTS.—Implementation of the

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

14 on a wide enough scale to permit a thorough evalua15 tion of the alternative methods under consideration,

16 so as to ensure that the most efficacious methods

17 are determined and in place for full implementation

18 of the Program on a timely basis.

19 (3) FULL IMPLEMENTATION.—The Commis20 sioner shall ensure that the ability to provide tickets

21 and services to individuals under the Program exists

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

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

24 than 3 years after such date.

25 (4) ONGOING EVALUATION OF PROGRAM.—
56

•S 331 RS

1 (A) IN GENERAL.—The Commissioner

2 shall design and conduct a series of evaluations

3 to assess the cost-effectiveness of activities car4 ried out under this section and the amendments

5 made thereby, as well as the effects of this sec6 tion and the amendments made thereby on

7 work outcomes for beneficiaries receiving tickets

8 to work and self-sufficiency under the Program.

9 (B) CONSULTATION.—The Commissioner

10 shall design and carry out the series of evalua11 tions after receiving relevant advice from ex12 perts in the fields of disability, vocational reha13 bilitation, and program evaluation and individ14 uals using tickets to work and self-sufficiency

15 under the Program and consulting with the

16 Work Incentives Advisory Panel established

17 under section 202, the Comptroller General of

18 the United States, other agencies of the Federal

19 Government, and private organizations with ap20 propriate expertise.

21 (C) METHODOLOGY.—

22 (i) IMPLEMENTATION.—The Commis23 sioner, in consultation with the Work In24 centives Advisory Panel established under

25 section 202, shall ensure that plans for
57

•S 331 RS

1 evaluations and data collection methods

2 under the Program are appropriately de3 signed to obtain detailed employment infor4 mation.

5 (ii) SPECIFIC MATTERS TO BE AD6 DRESSED.—Each such evaluation shall ad7 dress (but is not limited to)—

8 (I) the annual cost (including net

9 cost) of the Program and the annual

10 cost (including net cost) that would

11 have been incurred in the absence of

12 the Program;

13 (II) the determinants of return to

14 work, including the characteristics of

15 beneficiaries in receipt of tickets

16 under the Program;

17 (III) the types of employment

18 services, vocational rehabilitation serv19 ices, and other support services fur20 nished to beneficiaries in receipt of

21 tickets under the Program who return

22 to work and to those who do not re23 turn to work;

24 (IV) the duration of employment

25 services, vocational rehabilitation serv-
58

•S 331 RS

1 ices, and other support services fur2 nished to beneficiaries in receipt of

3 tickets under the Program who return

4 to work and the duration of such serv5 ices furnished to those who do not re6 turn to work and the cost to employ7 ment networks of furnishing such

8 services;

9 (V) the employment outcomes,

10 including wages, occupations, benefits,

11 and hours worked, of beneficiaries

12 who return to work after receiving

13 tickets under the Program and those

14 who return to work without receiving

15 such tickets;

16 (VI) the characteristics of pro17 viders whose services are provided

18 within an employment network under

19 the Program;

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

21 employment networks display a great22 er willingness to provide services to

23 beneficiaries with a range of disabil24 ities;
59

•S 331 RS

1 (VIII) the characteristics (includ2 ing employment outcomes) of those

3 beneficiaries who receive services

4 under the outcome payment system

5 and of those beneficiaries who receive

6 services under the outcome-milestone

7 payment system;

8 (IX) measures of satisfaction

9 among beneficiaries in receipt of tick10 ets under the Program; and

11 (X) reasons for (including com12 ments solicited from beneficiaries re13 garding) their choice not to use their

14 tickets or their inability to return to

15 work despite the use of their tickets.

16 (D) PERIODIC EVALUATION REPORTS.—

17 Following the close of the third and fifth fiscal

18 years ending after the effective date under sub19 section (c), and prior to the close of the seventh

20 fiscal year ending after such date, the Commis21 sioner shall transmit to the Committee on Ways

22 and Means of the House of Representatives and

23 the Committee on Finance of the Senate a re24 port containing the Commissioner’s evaluation

25 of the progress of activities conducted under the
60

•S 331 RS

1 provisions of this section and the amendments

2 made thereby. Each such report shall set forth

3 the Commissioner’s evaluation of the extent to

4 which the Program has been successful and the

5 Commissioner’s conclusions on whether or how

6 the Program should be modified. Each such re7 port shall include such data, findings, materials,

8 and recommendations as the Commissioner may

9 consider appropriate.

10 (5) EXTENT OF STATE’S RIGHT OF FIRST RE11 FUSAL IN ADVANCE OF FULL IMPLEMENTATION OF

12 AMENDMENTS IN SUCH STATE.—

13 (A) IN GENERAL.—In the case of any

14 State in which the amendments made by sub15 section (a) have not been fully implemented

16 pursuant to this subsection, the Commissioner

17 shall determine by regulation the extent to

18 which—

19 (i) the requirement under section

20 222(a) of the Social Security Act for

21 prompt referrals to a State agency, and

22 (ii) the authority of the Commissioner

23 under section 222(d)(2) of the Social Secu24 rity Act to provide vocational rehabilitation

25 services in such State by agreement or
61

•S 331 RS

1 contract with other public or private agen2 cies, organizations, institutions, or individ3 uals,

4 shall apply in such State.

5 (B) EXISTING AGREEMENTS.—Nothing in

6 subparagraph (A) or the amendments made by

7 subsection (a) shall be construed to limit, im8 pede, or otherwise affect any agreement entered

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

10 Security Act before the date of enactment of

11 this Act with respect to services provided pursu12 ant to such agreement to beneficiaries receiving

13 services under such agreement as of such date,

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

15 provided after 3 years after the effective date

16 provided in subsection (c).

17 (e) SPECIFIC REGULATIONS REQUIRED.—

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

19 Security shall prescribe such regulations as are nec20 essary to implement the amendments made by this

21 section.

22 (2) SPECIFIC MATTERS TO BE INCLUDED IN

23 REGULATIONS.—The matters which shall be ad24 dressed in such regulations shall include—
62

•S 331 RS

1 (A) the form and manner in which tickets

2 to work and self-sufficiency may be distributed

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

4 of the Social Security Act;

5 (B) the format and wording of such tick6 ets, which shall incorporate by reference any

7 contractual terms governing service by employ8 ment networks under the Program;

9 (C) the form and manner in which State

10 agencies may elect participation in the Ticket to

11 Work and Self-Sufficiency Program (and revoke

12 such an election) pursuant to section

13 1148(c)(1) of the Social Security Act and provi14 sion for periodic opportunities for exercising

15 such elections (and revocations);

16 (D) the status of State agencies under sec17 tion 1148(c)(1) at the time that State agencies

18 exercise elections (and revocations) under that

19 section;

20 (E) the terms of agreements to be entered

21 into with program managers pursuant to sec22 tion 1148(d) of the Social Security Act,

23 including—

24 (i) the terms by which program man25 agers are precluded from direct participa-
63

•S 331 RS

1 tion in the delivery of services pursuant to

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

3 Act;

4 (ii) standards which must be met by

5 quality assurance measures referred to in

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

7 methods of recruitment of employment net8 works utilized pursuant to paragraph (2)

9 of section 1148(e); and

10 (iii) the format under which dispute

11 resolution will operate under section

12 1148(d)(7);

13 (F) the terms of agreements to be entered

14 into with employment networks pursuant to sec15 tion 1148(d)(4) of the Social Security Act,

16 including—

17 (i) the manner in which service areas

18 are specified pursuant to section

19 1148(f)(2)(A) of the Social Security Act;

20 (ii) the general selection criteria and

21 the specific selection criteria which are ap22 plicable to employment networks under

23 section 1148(f)(1)(C) of the Social Secu24 rity Act in selecting service providers;
64

•S 331 RS

1 (iii) specific requirements relating to

2 annual financial reporting by employment

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

4 the Social Security Act; and

5 (iv) the national model to which peri6 odic outcomes reporting by employment

7 networks must conform under section

8 1148(f)(4) of the Social Security Act;

9 (G) standards which must be met by indi10 vidual work plans pursuant to section 1148(g)

11 of the Social Security Act;

12 (H) standards which must be met by pay13 ment systems required under section 1148(h) of

14 the Social Security Act, including—

15 (i) the form and manner in which

16 elections by employment networks of pay17 ment systems are to be exercised pursuant

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

19 (ii) the terms which must be met by

20 an outcome payment system under section

21 1148(h)(2);

22 (iii) the terms which must be met by

23 an outcome-milestone payment system

24 under section 1148(h)(3);
65

•S 331 RS

1 (iv) any revision of the percentage

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

3 1148(h) of the Social Security Act or the

4 period of time specified in paragraph

5 (4)(B) of such section 1148(h); and

6 (v) annual oversight procedures for

7 such systems; and

8 (I) procedures for effective oversight of the

9 Program by the Commissioner of Social Secu10 rity, including periodic reviews and reporting

11 requirements.

12 SEC. 202. WORK INCENTIVES ADVISORY PANEL.

13 (a) ESTABLISHMENT.—There is established within

14 the Social Security Administration a panel to be known

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

16 referred to as the ‘‘Panel’’).

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

18 Panel to—

19 (1) advise the Secretary of Health and Human

20 Services, the Secretary of Labor, the Secretary of

21 Education, and the Commissioner of Social Security

22 on issues related to work incentives programs, plan23 ning, and assistance for individuals with disabilities,

24 including work incentive provisions under titles II,

25 XI, XVI, XVIII, and XIX of the Social Security Act
66

•S 331 RS

1 (42 U.S.C. 401 et seq., 1301 et seq., 1381 et seq.,

2 1395 et seq., 1396 et seq.); and

3 (2) with respect to the Ticket to Work and Self4 Sufficiency Program established under section 1148

5 of the Social Security Act—

6 (A) advise the Commissioner of Social Se7 curity with respect to establishing phase-in sites

8 for such Program and fully implementing the

9 Program thereafter, the refinement of access of

10 disabled beneficiaries to employment networks,

11 payment systems, and management information

12 systems, and advise the Commissioner whether

13 such measures are being taken to the extent

14 necessary to ensure the success of the Program;

15 (B) advise the Commissioner regarding the

16 most effective designs for research and dem17 onstration projects associated with the Program

18 or conducted pursuant to section 302;

19 (C) advise the Commissioner on the devel20 opment of performance measurements relating

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

22 of the Social Security Act; and

23 (D) furnish progress reports on the Pro24 gram to the Commissioner and each House of

25 Congress.
67

•S 331 RS

1 (c) MEMBERSHIP.—

2 (1) NUMBER AND APPOINTMENT.—The Panel

3 shall be composed of 12 members appointed by the

4 Commissioner of Social Security in consultation with

5 the Speaker of the House of Representatives, the

6 Minority Leader of the House of Representatives,

7 the Majority Leader of the Senate, and the Minority

8 Leader of the Senate.

9 (2) REPRESENTATION.—All members appointed

10 to the Panel shall have experience or expert knowl11 edge in the fields of, or related to, work incentive

12 programs, employment services, vocational rehabili13 tation services, health care services, and other sup14 port services for individuals with disabilities. At least

15 7 members of the Panel shall be individuals with dis16 abilities or representatives of individuals with dis17 abilities, except that, of those 7 members, at least 5

18 members shall be current or former title II disability

19 beneficiaries or title XVI disability beneficiaries (as

20 such terms are defined in section 1148(k) of the So21 cial Security Act (as added by section 201(a) of this

22 Act)).

23 (3) TERMS.—

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

25 appointed for a term of 4 years (or, if less, for
68

•S 331 RS

1 the remaining life of the Panel), except as pro2 vided in subparagraphs (B) and (C). The initial

3 members shall be appointed not later than 90

4 days after the date of enactment of this Act.

5 (B) TERMS OF INITIAL APPOINTEES.—As

6 designated by the Commissioner at the time of

7 appointment, of the members first appointed—

8 (i) 6 of the members appointed under

9 paragraph (1) shall be appointed for a

10 term of 2 years, and

11 (ii) 6 of the members appointed under

12 paragraph (1) shall be appointed for a

13 term of 4 years.

14 (C) VACANCIES.—Any member appointed

15 to fill a vacancy occurring before the expiration

16 of the term for which the member’s predecessor

17 was appointed shall be appointed only for the

18 remainder of that term. A member may serve

19 after the expiration of that member’s term until

20 a successor has taken office. A vacancy in the

21 Panel shall be filled in the manner in which the

22 original appointment was made.

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

24 a rate, and in a manner, that is consistent with
69

•S 331 RS

1 guidelines established under section 7 of the Federal

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

3 (5) TRAVEL EXPENSES.—Each member shall

4 receive travel expenses, including per diem in lieu of

5 subsistence, in accordance with sections 5702 and

6 5703 of title 5, United States Code.

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

8 shall constitute a quorum but a lesser number may

9 hold hearings.

10 (7) CHAIRPERSON.—The Chairperson of the

11 Panel shall be designated by the Commissioner. The

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

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

14 quarterly and at other times at the call of the Chair15 person or a majority of its members.

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

17 CONSULTANTS.—

18 (1) DIRECTOR.—The Panel shall have a Direc19 tor who shall be appointed by the Commissioner and

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

21 with guidelines established under section 7 of the

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

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

24 Commissioner, the Director may appoint and fix the
70

•S 331 RS

1 pay of additional personnel as the Director considers

2 appropriate.

3 (3) EXPERTS AND CONSULTANTS.—Subject to

4 rules prescribed by the Commissioner, the Director

5 may procure temporary and intermittent services

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

7 (4) STAFF OF FEDERAL AGENCIES.—Upon re8 quest of the Panel, the head of any Federal depart9 ment or agency may detail, on a reimbursable basis,

10 any of the personnel of that department or agency

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

12 under this section.

13 (e) POWERS OF PANEL.—

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

15 for the purpose of carrying out its duties under this

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

17 and places, and take such testimony and evidence as

18 the Panel considers appropriate.

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

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

21 the Panel, take any action which the Panel is au22 thorized to take by this section.

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

24 States mails in the same manner and under the
71

•S 331 RS

1 same conditions as other departments and agencies

2 of the United States.

3 (f) REPORTS.—

4 (1) INTERIM REPORTS.—The Panel shall sub5 mit to the President and Congress interim reports at

6 least annually.

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

8 a final report to the President and Congress not

9 later than 8 years after the date of enactment of

10 this Act. The final report shall contain a detailed

11 statement of the findings and conclusions of the

12 Panel, together with its recommendations for legisla13 tion and administrative actions which the Panel con14 siders appropriate.

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

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

17 under subsection (f)(2).

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

19 out this section shall be paid from amounts made available

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

21 (42 U.S.C. 401 et seq.) and amounts made available for

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

23 1381 et seq.), and shall be allocated among those amounts

24 as appropriate.
72

•S 331 RS

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 indi18 vidual may be used as evidence that the individual

19 is 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—
73

•S 331 RS

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
74

•S 331 RS

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-
75

•S 331 RS

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;
76

•S 331 RS

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

•S 331 RS

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.
78

•S 331 RS

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
79

•S 331 RS

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-
80

•S 331 RS

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.—
81

•S 331 RS

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).’’.
82

•S 331 RS

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
83

•S 331 RS

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.
84

•S 331 RS

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 min6 imum 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
85

•S 331 RS

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)—
86

•S 331 RS

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
87

•S 331 RS

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
88

•S 331 RS

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.
89

•S 331 RS

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
90

•S 331 RS

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
91

•S 331 RS

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-re24 lated employment incentives under the Americans

25 with Disabilities Act of 1990 and other Federal
92

•S 331 RS

1 laws. In such study, the Comptroller General shall

2 specifically address the extent to which such credits

3 and other incentives would encourage employers to

4 hire and retain 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
93

•S 331 RS

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
94

•S 331 RS

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.
95

•S 331 RS

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
96

•S 331 RS

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 pre17 ceding provisions of this paragraph, and the

18 provisions of section 223(f) of the Social Secu19 rity Act shall not apply to such redetermina20 tion.’’.

21 (b) CORRECTION TO EFFECTIVE DATE OF PROVI22 SIONS CONCERNING REPRESENTATIVE PAYEES AND

23 TREATMENT REFERRALS OF SOCIAL SECURITY BENE24 FICIARIES WHO ARE DRUG ADDICTS AND ALCOHOLICS.—

25 Section 105(a)(5)(B) of the Contract with America Ad-
97

•S 331 RS

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:
98

•S 331 RS

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
99

•S 331 RS

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
100

•S 331 RS

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
101

•S 331 RS

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 fol15 lowing:

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
102

•S 331 RS

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;
103

•S 331 RS

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-
104

•S 331 RS

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
105

•S 331 RS

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’’.
106

•S 331 RS

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’’ .
107

•S 331 RS

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.

4 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

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

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

8 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 the medicaid program 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 under the medicaid program 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.

Subtitle B—Elimination of Work Disincentives

Sec. 211. Work activity standard as a basis for review of an individual’s disabled

status.

Sec. 212. Expedited reinstatement of disability benefits.

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. Permanent extension of disability insurance program demonstration

project authority.

Sec. 302. Demonstration projects providing for reductions in disability insurance

benefits based on earnings.

Sec. 303. Studies and reports.
108

•S 331 RS

TITLE IV—MISCELLANEOUS AND TECHNICAL AMENDMENTS

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

Sec. 402. Treatment of prisoners.

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.

TITLE V—REVENUE

Sec. 501. Modification to foreign tax credit carryback and carryover periods.

Sec. 502. Limitation on use of non-accrual experience method of accounting.

Sec. 503. Extension of Internal Revenue Service user fees.

1 SEC. 2. FINDINGS AND PURPOSES.

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

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

4 (2) Health care is particularly important to in5 dividuals with disabilities and special health care

6 needs who often cannot afford the insurance available

7 to them through the private market, are uninsurable

8 by the plans available in the private sector, and are

9 at great risk of incurring very high and economically

10 devastating health care costs.

11 (3) Americans with significant disabilities often

12 are unable to obtain health care insurance that pro13 vides coverage of the services and supports that enable

14 them to live independently and enter or rejoin the

15 workforce. Personal assistance services (such as at16 tendant services, personal assistance with transpor17 tation to and from work, reader services, job coaches,

18 and related assistance) remove many of the barriers

19 between significant disability and work. Coverage for
109

•S 331 RS

1 such services, as well as for prescription drugs, dura2 ble medical equipment, and basic health care are

3 powerful and proven tools for individuals with sig4 nificant disabilities to obtain and retain employment.

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

6 losing health care and related services is one of the

7 greatest barriers keeping the individuals from maxi8 mizing their employment, earning potential, and

9 independence.

10 (5) Individuals with disabilities who are bene11 ficiaries under title II or XVI of the Social Security

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

13 medicare or medicaid coverage that is linked to their

14 cash benefits, a risk that is an equal, or greater, work

15 disincentive than the loss of cash benefits associated

16 with working.

(6) Currently, less than 1 17 ⁄2 of 1 percent of social

18 security disability insurance and supplemental secu19 rity income beneficiaries cease to receive benefits as a

20 result of employment.

21 (7) Beneficiaries have cited the lack of adequate

22 employment training and placement services as an

23 additional barrier to employment.

(8) If an additional 1 24 ⁄2 of 1 percent of the cur25 rent social security disability insurance (DI) and
110

•S 331 RS

1 supplemental security income (SSI) recipients were to

2 cease receiving benefits as a result of employment, the

3 savings to the Social Security Trust Funds in cash

4 assistance would total $3,500,000,000 over the

5 worklife of the individuals.

6 (b) PURPOSES.—The purposes of this Act are as fol7 lows:

8 (1) To provide health care and employment

9 preparation and placement services to individuals

10 with disabilities that will enable those individuals to

11 reduce their dependency on cash benefit programs.

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

13 allowing individuals with disabilities to purchase

14 medicaid coverage that is necessary to enable such in15 dividuals to maintain employment.

16 (3) To provide individuals with disabilities the

17 option of maintaining medicare coverage while work18 ing.

19 (4) To establish a return to work ticket program

20 that will allow individuals with disabilities to seek

21 the services necessary to obtain and retain employ22 ment and reduce their dependency on cash benefit

23 programs.
111

•S 331 RS

1 TITLE I—EXPANDED AVAIL2 ABILITY OF HEALTH CARE

3 SERVICES

4 SEC. 101. EXPANDING STATE OPTIONS UNDER THE MED5 ICAID PROGRAM FOR WORKERS WITH DIS6 ABILITIES.

7 (a) IN GENERAL.—

8 (1) STATE OPTION TO ELIMINATE INCOME, AS9 SETS, AND RESOURCE LIMITATIONS FOR WORKERS

10 WITH DISABILITIES BUYING INTO MEDICAID.—Section

11 1902(a)(10)(A)(ii) of the Social Security Act (42

12 U.S.C. 1396a(a)(10)(A)(ii)) is amended—

13 (A) in subclause (XIII), by striking ‘‘or’’ at

14 the end;

15 (B) in subclause (XIV), by adding ‘‘or’’ at

16 the end; and

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

18 ‘‘(XV) who, but for earnings in

19 excess of the limit established under

20 section 1905(q)(2)(B), would be consid21 ered to be receiving supplemental secu22 rity income and whose assets, re23 sources, and earned or unearned in24 come (or both) do not exceed such limi-
112

•S 331 RS

1 tations (if any) as the State may es2 tablish;’’.

3 (2) STATE OPTION TO PROVIDE OPPORTUNITY

4 FOR EMPLOYED INDIVIDUALS WITH A MEDICALLY IM5 PROVED DISABILITY TO BUY INTO MEDICAID.—

6 (A) ELIGIBILITY.—Section 1902(a)(10)

7 (A)(ii) of the Social Security Act (42 U.S.C.

8 1396a(a)(10)(A)(ii)), as amended by paragraph

9 (1), is amended—

10 (i) in subclause (XIV), by striking ‘‘or’’

11 at the end;

12 (ii) in subclause (XV), by adding ‘‘or’’

13 at the end; and

14 (iii) by adding at the end the fol15 lowing:

16 ‘‘(XVI) who are employed individ17 uals with a medically improved dis18 ability described in section 1905(v)(1)

19 and whose assets, resources, and earned

20 or unearned income (or both) do not

21 exceed such limitations (if any) as the

22 State may establish, but only if the

23 State provides medical assistance to

24 individuals described in subclause

25 (XV);’’.
113

•S 331 RS

1 (B) DEFINITION OF EMPLOYED INDIVIDUALS

2 WITH A MEDICALLY IMPROVED DISABILITY.—Sec3 tion 1905 of the Social Security Act (42 U.S.C.

4 1396d) is amended by adding at the end the fol5 lowing:

6 ‘‘(v)(1) The term ‘employed individual with a medi7 cally improved disability’ means an individual who—

8 ‘‘(A) is at least 16, but less than 65, years of age;

9 ‘‘(B) is employed (as defined in paragraph (2));

10 ‘‘(C) ceases to be eligible for medical assistance

11 under section 1902(a)(10)(A)(ii)(XV) because the in12 dividual, by reason of medical improvement, is deter13 mined at the time of a regularly scheduled continuing

14 disability review to no longer be eligible for benefits

15 under section 223(d) or 1614(a)(3); and

16 ‘‘(D) continues to have a severe medically deter17 minable impairment, as determined under regulations

18 of the Secretary.

19 ‘‘(2) For purposes of paragraph (1), an individual is

20 considered to be ‘employed’ if the individual—

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

22 wage requirement under section 6 of the Fair Labor

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

24 40 hours per month; or
114

•S 331 RS

1 ‘‘(B) is engaged in a work effort that meets sub2 stantial and reasonable threshold criteria for hours of

3 work, wages, or other measures, as defined by the

4 State and approved by the Secretary.’’.

5 (C) CONFORMING AMENDMENT.—Section

6 1905(a) of such Act (42 U.S.C. 1396d(a)) is

7 amended in the matter preceding paragraph

8 (1)—

9 (i) in clause (x), by striking ‘‘or’’ at

10 the end;

11 (ii) in clause (xi), by adding ‘‘or’’ at

12 the end; and

13 (iii) by inserting after clause (xi), the

14 following:

15 ‘‘(xii) employed individuals with a medically

16 improved disability (as defined in subsection (v)),’’.

17 (3) STATE AUTHORITY TO IMPOSE INCOME-RE18 LATED PREMIUMS AND COST-SHARING.—Section 1916

19 of such Act (42 U.S.C. 1396o) is amended—

20 (A) in subsection (a), by striking ‘‘The

21 State plan’’ and inserting ‘‘Subject to subsection

22 (g), the State plan’’; and

23 (B) by adding at the end the following:

24 ‘‘(g) With respect to individuals provided medical as25 sistance only under subclause (XV) or (XVI) of section
115

•S 331 RS

1 1902(a)(10)(A)(ii), a State may (in a uniform manner for

2 individuals described in either such subclause)—

3 ‘‘(1) require such individuals to pay premiums

4 or other cost-sharing charges set on a sliding scale

5 based on income that the State may determine; and

6 ‘‘(2) require payment of 100 percent of such pre7 miums in the case of such an individual who has in8 come that exceeds 250 percent of the income official

9 poverty line (referred to in subsection (c)(1)) applica10 ble to a family of the size involved.’’.

11 (4) PROHIBITION AGAINST SUPPLANTATION OF

12 STATE FUNDS AND STATE FAILURE TO MAINTAIN EF13 FORT.—Section 1903(i) of such Act (42 U.S.C.

14 1396b(i)) is amended—

15 (A) by striking the period at the end of

16 paragraph (18) and inserting ‘‘; or’’; and

17 (B) by inserting after such paragraph the

18 following:

19 ‘‘(19) with respect to amounts expended for med20 ical assistance provided to an individual described in

21 subclause (XV) or (XVI) of section 1902(a)(10)(A)(ii)

22 for a fiscal year unless the State demonstrates to the

23 satisfaction of the Secretary that the level of State

24 funds expended for such fiscal year for programs to

25 enable working individuals with disabilities to work
116

•S 331 RS

1 (other than for such medical assistance) is not less

2 than the level expended for such programs during the

3 most recent State fiscal year ending before the date

4 of enactment of this paragraph.’’.

5 (b) CONFORMING AMENDMENTS.—

6 (1) Section 1903(f)(4) of the Social Security Act

7 (42 U.S.C. 1396b(f)(4) is amended in the matter pre8 ceding subparagraph (A) by inserting

9 ‘‘1902(a)(10)(A)(ii)(XV), 1902(a)(10)(A)(ii)(XVI)’’

10 after ‘‘1902(a)(10)(A)(ii)(X),’’.

11 (2) Section 1903(f)(4) of such Act, as amended

12 by paragraph (1), is amended by inserting

13 ‘‘1902(a)(10)(A)(ii)(XIII),’’ before

14 ‘‘1902(a)(10)(A)(ii)(XV)’’.

15 (c) EFFECTIVE DATE.—

16 (1) IN GENERAL.—Except as provided in para17 graph (2), the amendments made by this section

18 apply to medical assistance for items and services

19 furnished on or after October 1, 1999.

20 (2) RETROACTIVITY OF CONFORMING AMEND21 MENT.—The amendment made by subsection (b)(2)

22 takes effect as if included in the enactment of the

23 Balanced Budget Act of 1997.
117

•S 331 RS

1 SEC. 102. CONTINUATION OF MEDICARE COVERAGE FOR

2 WORKING INDIVIDUALS WITH DISABILITIES.

3 (a) CONTINUATION OF COVERAGE.—

4 (1) IN GENERAL.—Section 226 of the Social Se5 curity Act (42 U.S.C. 426) is amended—

6 (A) in the third sentence of subsection (b),

7 by inserting ‘‘, except as provided in subsection

8 (j)’’ after ‘‘but not in excess of 24 such months’’;

9 and

10 (B) by adding at the end the following:

11 ‘‘(j) The 24-month limitation on deemed entitlement

12 under the third sentence of subsection (b) shall not apply—

13 ‘‘(1) for months occurring during the 10-year pe14 riod beginning with the first month that begins after

15 the date of enactment of this subsection; and

16 ‘‘(2) for subsequent months, in the case of an in17 dividual who was entitled to benefits under subsection

18 (b) as of the last month of such 10-year period and

19 would continue (but for such 24-month limitation) to

20 be so entitled.’’.

21 (2) CONFORMING AMENDMENT.—Section

22 1818A(a)(2)(C) of the Social Security Act (42 U.S.C.

23 1395i–2a(a)(2)(C)) is amended—

24 (A) by striking ‘‘solely’’; and
118

•S 331 RS

1 (B) by inserting ‘‘or the expiration of the

2 last month of the 10-year period described in sec3 tion 226(j)’’ before the semicolon.

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

5 date of the enactment of this Act, the Comptroller General

6 of the United States shall submit a report to Congress

7 that—

8 (1) examines the effectiveness and cost of sub9 section (j) of section 226 of the Social Security Act

10 (42 U.S.C. 426); and

11 (2) recommends whether that subsection should

12 continue to be applied beyond the 10-year period de13 scribed in the subsection.

14 (c) EFFECTIVE DATE.—The amendments made by sub15 section (a) apply to months beginning with the first month

16 that begins after the date of the enactment of this Act.

17 (d) TREATMENT OF CERTAIN INDIVIDUALS.—An indi18 vidual enrolled under section 1818A of the Social Security

19 Act (42 U.S.C. 1395i–2a) shall be treated with respect to

20 premium payment obligations under such section as though

21 the individual had continued to be entitled to benefits under

22 section 226(b) of such Act for—

23 (1) months described in section 226(j)(1) of such

24 Act (42 U.S.C. 426(j)(1)) (as added by subsection

25 (a)); and
119

•S 331 RS

1 (2) subsequent months, in the case of an indi2 vidual who was so enrolled as of the last month de3 scribed in section 226(j)(2) of such Act (42 U.S.C.

4 426(j)(2)) (as so added).

5 SEC. 103. GRANTS TO DEVELOP AND ESTABLISH STATE IN6 FRASTRUCTURES TO SUPPORT WORKING IN7 DIVIDUALS WITH DISABILITIES.

8 (a) ESTABLISHMENT.—

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

10 Human Services (in this section referred to as the

11 ‘‘Secretary’’) shall award grants described in sub12 section (b) to States to support the design, establish13 ment, and operation of State infrastructures that pro14 vide items and services to support working individ15 uals with disabilities.

16 (2) APPLICATION.—In order to be eligible for an

17 award of a grant under this section, a State shall

18 submit an application to the Secretary at such time,

19 in such manner, and containing such information as

20 the Secretary shall require.

21 (3) DEFINITION OF STATE.—In this section, the

22 term ‘‘State’’ means each of the 50 States, the District

23 of Columbia, Puerto Rico, Guam, the United States

24 Virgin Islands, American Samoa, and the Common25 wealth of the Northern Mariana Islands.
120

•S 331 RS

1 (b) GRANTS FOR INFRASTRUCTURE AND OUTREACH.—

2 (1) IN GENERAL.—Out of the funds appropriated

3 under subsection (e), the Secretary shall award grants

4 to States to—

5 (A) support the establishment, implementa6 tion, and operation of the State infrastructures

7 described in subsection (a); and

8 (B) conduct outreach campaigns regarding

9 the existence of such infrastructures.

10 (2) ELIGIBILITY FOR GRANTS.—

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

12 grant under this subsection unless the State—

13 (i) has an approved amendment to the

14 State plan under title XIX of the Social Se15 curity Act (42 U.S.C. 1396 et seq.) that pro16 vides medical assistance under such plan to

17 individuals described in section

18 1902(a)(10)(A)(ii)(XV) of the Social Secu19 rity Act (42 U.S.C.

20 1396a(a)(10)(A)(ii)(XV)); and

21 (ii) demonstrates to the satisfaction of

22 the Secretary that the State makes personal

23 assistance services available under the State

24 plan under title XIX of the Social Security

25 Act (42 U.S.C. 1396 et seq.) to the extent
121

•S 331 RS

1 necessary to enable individuals described in

2 clause (i) to remain employed (as deter3 mined under section 1905(v)(2) of the So4 cial Security Act (42 U.S.C. 1396d(v)(2))).

5 (B) DEFINITION OF PERSONAL ASSISTANCE

6 SERVICES.—In this paragraph, the term ‘‘per7 sonal assistance services’’ means a range of serv8 ices, provided by 1 or more persons, designed to

9 assist an individual with a disability to perform

10 daily activities on and off the job that the indi11 vidual would typically perform if the individual

12 did not have a disability. Such services shall be

13 designed to increase the individual’s control in

14 life and ability to perform everyday activities on

15 or off the job.

16 (3) DETERMINATION OF AWARDS.—

17 (A) IN GENERAL.—Subject to subparagraph

18 (B), the Secretary shall determine a formula for

19 awarding grants to States under this section that

20 provides special consideration to States that pro21 vide medical assistance under title XIX of the

22 Social Security Act to individuals described in

23 section 1902(a)(10)(A)(ii)(XVI) of that Act (42

24 U.S.C. 1396a(a)(10)(A)(ii)(XVI)).

25 (B) AWARD LIMITS.—
122

•S 331 RS

1 (i) MINIMUM AWARDS.—

2 (I) IN GENERAL.—Subject to sub3 clause (II), no State with an approved

4 application under this section shall re5 ceive a grant for a fiscal year that is

6 less than $500,000.

7 (II) PRO RATA REDUCTIONS.—If

8 the funds appropriated under sub9 section (e) for a fiscal year are not suf10 ficient to pay each State with an ap11 plication approved under this section

12 the minimum amount described in

13 subclause (I), the Secretary shall pay

14 each such State an amount equal to the

15 pro rata share of the amount made

16 available.

17 (ii) MAXIMUM AWARDS.—No State

18 with an application that has been approved

19 under this section shall receive a grant for

20 a fiscal year that exceeds 15 percent of the

21 total expenditures by the State (including

22 the reimbursed Federal share of such ex23 penditures) for medical assistance for indi24 viduals eligible under subclause (XV) and

25 (XVI) of section 1902(a)(10)(A)(ii) of the
123

•S 331 RS

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

2 1396a(a)(10)(A)(ii)), as estimated by the

3 State and approved by the Secretary.

4 (c) AVAILABILITY OF FUNDS.—

5 (1) FUNDS AWARDED TO STATES.—Funds

6 awarded to a State under a grant made under this

7 section for a fiscal year shall remain available until

8 expended.

9 (2) FUNDS NOT AWARDED TO STATES.—Funds

10 not awarded to States in the fiscal year for which

11 they are appropriated shall remain available in suc12 ceeding fiscal years for awarding by the Secretary.

13 (d) ANNUAL REPORT.—A State that is awarded a

14 grant under this section shall submit an annual report to

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

16 Each report shall include the percentage increase in the

17 number of title II disability beneficiaries, as defined in sec18 tion 1148(k)(3) of the Social Security Act (as amended by

19 section 201) in the State, and title XVI disability bene20 ficiaries, as defined in section 1148(k)(4) of the Social Secu21 rity Act (as so amended) in the State who return to work.

22 (e) APPROPRIATION.—

23 (1) IN GENERAL.—Out of any funds in the

24 Treasury not otherwise appropriated, there is appro25 priated to make grants under this section—
124

•S 331 RS

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

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

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

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

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

6 (F) for each of fiscal years 2005 through

7 2010, the amount appropriated for the preceding

8 fiscal year increased by the percentage increase

9 (if any) in the Consumer Price Index for All

10 Urban Consumers (United States city average)

11 for the preceding fiscal year.

12 (2) BUDGET AUTHORITY.—This subsection con13 stitutes budget authority in advance of appropria14 tions Acts and represents the obligation of the Federal

15 Government to provide for the payment of the

16 amounts appropriated under paragraph (1).

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

18 2009, the Secretary, in consultation with the Work Incen19 tives Advisory Panel established under section 201(f), shall

20 submit a recommendation to the Committee on Commerce

21 of the House of Representatives and the Committee on Fi22 nance of the Senate regarding whether the grant program

23 established under this section should be continued after fis24 cal year 2010.
125

•S 331 RS

1 SEC. 104. DEMONSTRATION OF COVERAGE UNDER THE

2 MEDICAID PROGRAM OF WORKERS WITH PO3 TENTIALLY SEVERE DISABILITIES.

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

5 Secretary of Health and Human Services (in this section

6 referred to as the ‘‘Secretary’’) for approval of a demonstra7 tion project (in this section referred to as a ‘‘demonstration

8 project’’) under which up to a specified maximum number

9 of individuals who are workers with a potentially severe

10 disability (as defined in subsection (b)(1)) are provided

11 medical assistance equal to that provided under section

12 1905(a) of the Social Security Act (42 U.S.C. 1396d(a))

13 to individuals described in section 1902(a)(10)(A)(ii)(XV)

14 of that Act (42 U.S.C. 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 po18 tentially severe disability’’ means, with respect to a

19 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 the

24 demonstration project, is reasonably expected,

25 but for the receipt of items and services described

26 in section 1905(a) of the Social Security Act (42
126

•S 331 RS

1 U.S.C. 1396d(a)), to become blind or disabled (as

2 defined under section 1614(a) of the Social Secu3 rity Act (42 U.S.C. 1382c(a))); 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 min9 imum 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), the

19 Secretary shall approve applications under subsection

20 (a) that meet the requirements of paragraph (2) and

21 such additional terms and conditions as the Secretary

22 may require. The Secretary may waive the require23 ment of section 1902(a)(1) of the Social Security Act

24 (42 U.S.C. 1396a(a)(1)) to allow for sub-State dem25 onstrations.
127

•S 331 RS

1 (2) TERMS AND CONDITIONS OF DEMONSTRATION

2 PROJECTS.—The Secretary may not approve a dem3 onstration project under this section unless the State

4 provides assurances satisfactory to the Secretary that

5 the following conditions are or will be met:

6 (A) ELECTION OF OPTIONAL CATEGORY.—

7 The State has elected to provide coverage under

8 its plan under title XIX of the Social Security

9 Act of individuals described in section

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

11 Act (42 U.S.C. 1396a(a)(10)(A)(ii)(XV)).

12 (B) MAINTENANCE OF STATE EFFORT.—

13 Federal funds paid to a State pursuant to this

14 section must be used to supplement, but not sup15 plant, the level of State funds expended for work16 ers with potentially severe disabilities under pro17 grams in effect for such individuals at the time

18 the demonstration project is approved under this

19 section.

20 (C) INDEPENDENT EVALUATION.—The State

21 provides for an independent evaluation of the

22 project.

23 (3) LIMITATIONS ON FEDERAL FUNDING.—

24 (A) APPROPRIATION.—
128

•S 331 RS

1 (i) IN GENERAL.—Out of any funds in

2 the Treasury not otherwise appropriated,

3 there is appropriated to carry out this

4 section—

5 (I) for fiscal year 2000,

6 $70,000,000;

7 (II) for fiscal year 2001,

8 $73,000,000;

9 (III) for fiscal year 2002,

10 $77,000,000; and

11 (IV) for fiscal year 2003,

12 $80,000,000.

13 (ii) BUDGET AUTHORITY.—Clause (i)

14 constitutes budget authority in advance of

15 appropriations Acts and represents the obli16 gation of the Federal Government to provide

17 for the payment of the amounts appro18 priated under clause (i).

19 (B) LIMITATION ON PAYMENTS.—In no case

20 may—

21 (i) the aggregate amount of payments

22 made by the Secretary to States under this

23 section exceed $300,000,000; or
129

•S 331 RS

1 (ii) payments be provided by the Sec2 retary for a fiscal year after fiscal year

3 2005.

4 (C) FUNDS ALLOCATED TO STATES.—The

5 Secretary shall allocate funds to States based on

6 their applications and the availability of funds.

7 Funds allocated to a State under a grant made

8 under this section for a fiscal year shall remain

9 available until expended.

10 (D) FUNDS NOT ALLOCATED TO STATES.—

11 Funds not allocated to States in the fiscal year

12 for which they are appropriated shall remain

13 available in succeeding fiscal years for allocation

14 by the Secretary using the allocation formula es15 tablished under this section.

16 (E) PAYMENTS TO STATES.—The Secretary

17 shall pay to each State with a demonstration

18 project approved under this section, from its al19 location under subparagraph (C), an amount for

20 each quarter equal to the Federal medical assist21 ance percentage (as defined in section 1905(b) of

22 the Social Security Act (42 U.S.C. 1395d(b)) of

23 expenditures in the quarter for medical assist24 ance provided to workers with a potentially se25 vere disability.
130

•S 331 RS

1 (d) RECOMMENDATION.—Not later than October 1,

2 2002, the Secretary shall submit a recommendation to the

3 Committee on Commerce of the House of Representatives

4 and the Committee on Finance of the Senate regarding

5 whether the demonstration project established under this

6 section should be continued after fiscal year 2003.

7 (e) STATE DEFINED.—In this section, the term ‘‘State’’

8 has the meaning given such term for purposes of title XIX

9 of the Social Security Act (42 U.S.C. 1396 et seq.).

10 TITLE II—TICKET TO WORK AND

11 SELF-SUFFICIENCY AND RE12 LATED PROVISIONS

13 Subtitle A—Ticket to Work and

14 Self-Sufficiency

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

16 SELF-SUFFICIENCY PROGRAM.

17 (a) IN GENERAL.—Part A of title XI of the Social Se18 curity Act (42 U.S.C. 1301 et seq.) is amended by adding

19 after section 1147 (as added by section 8 of the Noncitizen

20 Benefit Clarification and Other Technical Amendments Act

21 of 1998 (Public Law 105–306; 112 Stat. 2928)) the fol22 lowing:

23 ‘‘TICKET TO WORK AND SELF-SUFFICIENCY PROGRAM

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

25 shall establish a Ticket to Work and Self-Sufficiency Pro26 gram, under which a disabled beneficiary may use a ticket
131

•S 331 RS

1 to work and self-sufficiency issued by the Commissioner in

2 accordance with this section to obtain employment services,

3 vocational rehabilitation services, or other support services

4 from an employment network which is of the beneficiary’s

5 choice and which is willing to provide such services to the

6 beneficiary.

7 ‘‘(b) TICKET SYSTEM.—

8 ‘‘(1) DISTRIBUTION OF TICKETS.—The Commis9 sioner may issue a ticket to work and self-sufficiency

10 to disabled beneficiaries for participation in the Pro11 gram.

12 ‘‘(2) ASSIGNMENT OF TICKETS.—A disabled ben13 eficiary holding a ticket to work and self-sufficiency

14 may assign the ticket to any employment network of

15 the beneficiary’s choice which is serving under the

16 Program and is willing to accept the assignment.

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

18 paragraph (1) shall consist of a document which evi19 dences the Commissioner’s agreement to pay (as pro20 vided in paragraph (4)) an employment network,

21 which is serving under the Program and to which

22 such ticket is assigned by the beneficiary, for such em23 ployment services, vocational rehabilitation services,

24 and other support services as the employment network

25 may provide to the beneficiary.
132

•S 331 RS

1 ‘‘(4) PAYMENTS TO EMPLOYMENT NETWORKS.—

2 The Commissioner shall pay an employment network

3 under the Program in accordance with the outcome

4 payment system under subsection (h)(2) or under the

5 outcome-milestone payment system under subsection

6 (h)(3) (whichever is elected pursuant to subsection

7 (h)(1)). An employment network may not request or

8 receive compensation for such services from the bene9 ficiary.

10 ‘‘(c) STATE PARTICIPATION.—

11 ‘‘(1) IN GENERAL.—Each State agency admin12 istering or supervising the administration of the

13 State plan approved under title I of the Rehabilita14 tion Act of 1973 may elect to participate in the Pro15 gram as an employment network with respect to a

16 disabled beneficiary. If the State agency does elect to

17 participate in the Program, the State agency also

18 shall elect to be paid under the outcome payment sys19 tem or the outcome-milestone payment system in ac20 cordance with subsection (h)(1). With respect to a dis21 abled beneficiary that the State agency does not elect

22 to have participate in the Program, the State agency

23 shall be paid for services provided to that beneficiary

24 under the system for payment applicable under sec25 tion 222(d) and subsections (d) and (e) of section
133

•S 331 RS

1 1615. The Commissioner shall provide for periodic

2 opportunities for exercising such elections (and rev3 ocations).

4 ‘‘(2) EFFECT OF PARTICIPATION BY STATE

5 AGENCY.—

6 ‘‘(A) STATE AGENCIES PARTICIPATING.—In

7 any case in which a State agency described in

8 paragraph (1) elects under that paragraph to

9 participate in the Program, the employment

10 services, vocational rehabilitation services, and

11 other support services which, upon assignment of

12 tickets to work and self-sufficiency, are provided

13 to disabled beneficiaries by the State agency act14 ing as an employment network shall be governed

15 by plans for vocational rehabilitation services

16 approved under title I of the Rehabilitation Act

17 of 1973.

18 ‘‘(B) STATE AGENCIES ADMINISTERING MA19 TERNAL AND CHILD HEALTH SERVICES PRO20 GRAMS.—Subparagraph (A) shall not apply with

21 respect to any State agency administering a pro22 gram under title V of this Act.

23 ‘‘(3) SPECIAL REQUIREMENTS APPLICABLE TO

24 CROSS-REFERRAL TO CERTAIN STATE AGENCIES.—
134

•S 331 RS

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

2 an employment network has been assigned a

3 ticket to work and self-sufficiency by a disabled

4 beneficiary, no State agency shall be deemed re5 quired, under this section, title I of the Workforce

6 Investment Act of 1998, title I of the Rehabilita7 tion Act of 1973, or a State plan approved under

8 such title, to accept any referral of such disabled

9 beneficiary from such employment network un10 less such employment network and such State

11 agency have entered into a written agreement

12 that meets the requirements of subparagraph (B).

13 Any beneficiary who has assigned a ticket to

14 work and self-sufficiency to an employment net15 work that has not entered into such a written

16 agreement with such a State agency may not ac17 cess vocational rehabilitation services under title

18 I of the Rehabilitation Act of 1973 until such

19 time as the beneficiary is reassigned to a State

20 vocational rehabilitation agency by the Program

21 Manager.

22 ‘‘(B) TERMS OF AGREEMENT.—An agree23 ment required by subparagraph (A) shall specify,

24 in accordance with regulations prescribed pursu25 ant to subparagraph (C)—
135

•S 331 RS

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

2 employment network holding the ticket will

3 provide to the State agency—

4 ‘‘(I) reimbursement for costs in5 curred in providing services described

6 in subparagraph (A) to the disabled

7 beneficiary; and

8 ‘‘(II) other amounts from pay9 ments made by the Commissioner to

10 the employment network pursuant to

11 subsection (h); and

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

13 required by such regulations.

14 ‘‘(C) REGULATIONS.—The Commissioner

15 and the Secretary of Education shall jointly pre16 scribe regulations specifying the terms of agree17 ments required by subparagraph (A) and other18 wise necessary to carry out the provisions of this

19 paragraph.

20 ‘‘(D) PENALTY.—No payment may be made

21 to an employment network pursuant to sub22 section (h) in connection with services provided

23 to any disabled beneficiary if such employment

24 network makes referrals described in subpara25 graph (A) in violation of the terms of the agree-
136

•S 331 RS

1 ment required under subparagraph (A) or with2 out having entered into such an agreement.

3 ‘‘(d) RESPONSIBILITIES OF THE COMMISSIONER.—

4 ‘‘(1) SELECTION AND QUALIFICATIONS OF PRO5 GRAM MANAGERS.—The Commissioner shall enter into

6 agreements with 1 or more organizations in the pri7 vate or public sector for service as a program man8 ager to assist the Commissioner in administering the

9 Program. Any such program manager shall be se10 lected by means of a competitive bidding process,

11 from among organizations in the private or public

12 sector with available expertise and experience in the

13 field of vocational rehabilitation and employment

14 services.

15 ‘‘(2) TENURE, RENEWAL, AND EARLY TERMI16 NATION.—Each agreement entered into under para17 graph (1) shall provide for early termination upon

18 failure to meet performance standards which shall be

19 specified in the agreement and which shall be weight20 ed to take into account any performance in prior

21 terms. Such performance standards shall include—

22 ‘‘(A) measures for ease of access by bene23 ficiaries to services; and

24 ‘‘(B) measures for determining the extent to

25 which failures in obtaining services for bene-
137

•S 331 RS

1 ficiaries fall within acceptable parameters, as de2 termined by the Commissioner.

3 ‘‘(3) PRECLUSION FROM DIRECT PARTICIPATION

4 IN DELIVERY OF SERVICES IN OWN SERVICE AREA.—

5 Agreements under paragraph (1) shall preclude—

6 ‘‘(A) direct participation by a program

7 manager in the delivery of employment services,

8 vocational rehabilitation services, or other sup9 port services to beneficiaries in the service area

10 covered by the program manager’s agreement;

11 and

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

13 a financial interest in an employment network

14 or service provider which provides services in a

15 geographic area covered under the program man16 ager’s agreement.

17 ‘‘(4) SELECTION OF EMPLOYMENT NETWORKS.—

18 ‘‘(A) IN GENERAL.—The Commissioner shall

19 select and enter into agreements with employ20 ment networks for service under the Program.

21 Such employment networks shall be in addition

22 to State agencies serving as employment net23 works pursuant to elections under subsection (c).

24 ‘‘(B) ALTERNATE PARTICIPANTS.—In any

25 State where the Program is being implemented,
138

•S 331 RS

1 the Commissioner shall enter into an agreement

2 with any alternate participant that is operating

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

4 State as of the date of enactment of this section

5 and chooses to serve as an employment network

6 under the Program.

7 ‘‘(5) TERMINATION OF AGREEMENTS WITH EM8 PLOYMENT NETWORKS.—The Commissioner shall ter9 minate agreements with employment networks for in10 adequate performance, as determined by the Commis11 sioner.

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

13 shall provide for such periodic reviews as are nec14 essary to provide for effective quality assurance in the

15 provision of services by employment networks. The

16 Commissioner shall solicit and consider the views of

17 consumers and the program manager under which the

18 employment networks serve and shall consult with

19 providers of services to develop performance measure20 ments. The Commissioner shall ensure that the results

21 of the periodic reviews are made available to bene22 ficiaries who are prospective service recipients as they

23 select employment networks. The Commissioner shall

24 ensure that the periodic surveys of beneficiaries re-
139

•S 331 RS

1 ceiving services under the Program are designed to

2 measure customer service satisfaction.

3 ‘‘(7) DISPUTE RESOLUTION.—The Commissioner

4 shall provide for a mechanism for resolving disputes

5 between beneficiaries and employment networks, be6 tween program managers and employment networks,

7 and between program managers and providers of

8 services. The Commissioner shall afford a party to

9 such a dispute a reasonable opportunity for a full

10 and fair review of the matter in dispute.

11 ‘‘(e) PROGRAM MANAGERS.—

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

13 conduct tasks appropriate to assist the Commissioner

14 in carrying out the Commissioner’s duties in admin15 istering the Program.

16 ‘‘(2) RECRUITMENT OF EMPLOYMENT NET17 WORKS.—A program manager shall recruit, and rec18 ommend for selection by the Commissioner, employ19 ment networks for service under the Program. The

20 program manager shall carry out such recruitment

21 and provide such recommendations, and shall mon22 itor all employment networks serving in the Program

23 in the geographic area covered under the program

24 manager’s agreement, to the extent necessary and ap25 propriate to ensure that adequate choices of services
140

•S 331 RS

1 are made available to beneficiaries. Employment net2 works may serve under the Program only pursuant

3 to an agreement entered into with the Commissioner

4 under the Program incorporating the applicable pro5 visions of this section and regulations thereunder, and

6 the program manager shall provide and maintain as7 surances to the Commissioner that payment by the

8 Commissioner to employment networks pursuant to

9 this section is warranted based on compliance by such

10 employment networks with the terms of such agree11 ment and this section. The program manager shall

12 not impose numerical limits on the number of em13 ployment networks to be recommended pursuant to

14 this paragraph.

15 ‘‘(3) FACILITATION OF ACCESS BY BENE16 FICIARIES TO EMPLOYMENT NETWORKS.—A program

17 manager shall facilitate access by beneficiaries to em18 ployment networks. The program manager shall en19 sure that each beneficiary is allowed changes in em20 ployment networks for good cause, as determined by

21 the Commissioner, without being deemed to have re22 jected services under the Program. The program man23 ager shall establish and maintain lists of employment

24 networks available to beneficiaries and shall make

25 such lists generally available to the public. The pro-
141

•S 331 RS

1 gram manager shall ensure that all information pro2 vided to disabled beneficiaries pursuant to this para3 graph is provided in accessible formats.

4 ‘‘(4) ENSURING AVAILABILITY OF ADEQUATE

5 SERVICES.—The program manager shall ensure that

6 employment services, vocational rehabilitation serv7 ices, and other support services are provided to bene8 ficiaries throughout the geographic area covered under

9 the program manager’s agreement, including rural

10 areas.

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

12 program manager shall take such measures as are

13 necessary to ensure that sufficient employment net14 works are available and that each beneficiary receiv15 ing services under the Program has reasonable access

16 to employment services, vocational rehabilitation serv17 ices, and other support services. Services provided

18 under the Program may include case management,

19 work incentives planning, supported employment, ca20 reer planning, career plan development, vocational

21 assessment, job training, placement, followup services,

22 and such other services as may be specified by the

23 Commissioner under the Program. The program man24 ager shall ensure that such services are available in

25 each service area.
142

•S 331 RS

1 ‘‘(f) EMPLOYMENT NETWORKS.—

2 ‘‘(1) QUALIFICATIONS FOR EMPLOYMENT NET3 WORKS.—

4 ‘‘(A) IN GENERAL.—Each employment net5 work serving under the Program shall consist of

6 an agency or instrumentality of a State (or a

7 political subdivision thereof) or a private entity

8 that assumes responsibility for the coordination

9 and delivery of services under the Program to in10 dividuals assigning to the employment network

11 tickets to work and self-sufficiency issued under

12 subsection (b).

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

14 employment network serving under the Program

15 may consist of a one-stop delivery system estab16 lished under subtitle B of title I of the Workforce

17 Investment Act of 1998.

18 ‘‘(C) COMPLIANCE WITH SELECTION CRI19 TERIA.—No employment network may serve

20 under the Program unless it meets and main21 tains compliance with both general selection cri22 teria (such as professional and educational

23 qualifications (where applicable)) and specific

24 selection criteria (such as substantial expertise
143

•S 331 RS

1 and experience in providing relevant employ2 ment services and supports).

3 ‘‘(D) SINGLE OR ASSOCIATED PROVIDERS

4 ALLOWED.—An employment network shall con5 sist of either a single provider of such services or

6 of an association of such providers organized so

7 as to combine their resources into a single entity.

8 An employment network may meet the require9 ments of subsection (e)(4) by providing services

10 directly, or by entering into agreements with

11 other individuals or entities providing appro12 priate employment services, vocational rehabili13 tation services, or other support services.

14 ‘‘(2) REQUIREMENTS RELATING TO PROVISION OF

15 SERVICES.—Each employment network serving under

16 the Program shall be required under the terms of its

17 agreement with the Commissioner to—

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

19 ‘‘(B) take such measures as are necessary to

20 ensure that employment services, vocational re21 habilitation services, and other support services

22 provided under the Program by, or under agree23 ments entered into with, the employment network

24 are provided under appropriate individual work

25 plans meeting the requirements of subsection (g).
144

•S 331 RS

1 ‘‘(3) ANNUAL FINANCIAL REPORTING.—Each em2 ployment network shall meet financial reporting re3 quirements as prescribed by the Commissioner.

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

5 employment network shall prepare periodic reports,

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

7 period specific outcomes achieved with respect to spe8 cific services provided by the employment network.

9 Such reports shall conform to a national model pre10 scribed under this section. Each employment network

11 shall provide a copy of the latest report issued by the

12 employment network pursuant to this paragraph to

13 each beneficiary upon enrollment under the Program

14 for services to be received through such employment

15 network. Upon issuance of each report to each bene16 ficiary, a copy of the report shall be maintained in

17 the files of the employment network. The program

18 manager shall ensure that copies of all such reports

19 issued under this paragraph are made available to the

20 public under reasonable terms.

21 ‘‘(g) INDIVIDUAL WORK PLANS.—

22 ‘‘(1) REQUIREMENTS.—Each employment net23 work shall—

24 ‘‘(A) take such measures as are necessary to

25 ensure that employment services, vocational re-
145

•S 331 RS

1 habilitation services, and other support services

2 provided under the Program by, or under agree3 ments entered into with, the employment network

4 are provided under appropriate individual work

5 plans that meet the requirements of subpara6 graph (C);

7 ‘‘(B) develop and implement each such indi8 vidual work plan in partnership with each bene9 ficiary receiving such services in a manner that

10 affords the beneficiary the opportunity to exer11 cise informed choice in selecting an employment

12 goal and specific services needed to achieve that

13 employment goal;

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

15 includes at least—

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

17 developed with the beneficiary;

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

19 supports that have been deemed necessary

20 for the beneficiary to accomplish that goal;

21 ‘‘(iii) a statement of any terms and

22 conditions related to the provision of such

23 services and supports; and

24 ‘‘(iv) a statement of understanding re25 garding the beneficiary’s rights under the
146

•S 331 RS

1 Program (such as the right to retrieve the

2 ticket to work and self-sufficiency if the ben3 eficiary is dissatisfied with the services

4 being provided by the employment network)

5 and remedies available to the individual,

6 including information on the availability of

7 advocacy services and assistance in resolv8 ing disputes through the State grant pro9 gram authorized under section 1150;

10 ‘‘(D) provide a beneficiary the opportunity

11 to amend the individual work plan if a change

12 in circumstances necessitates a change in the

13 plan; and

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

15 work plan available to the beneficiary in, as ap16 propriate, an accessible format chosen by the

17 beneficiary.

18 ‘‘(2) EFFECTIVE UPON WRITTEN APPROVAL.—A

19 beneficiary’s individual work plan shall take effect

20 upon written approval by the beneficiary or a rep21 resentative of the beneficiary and a representative of

22 the employment network that, in providing such writ23 ten approval, acknowledges assignment of the bene24 ficiary’s ticket to work and self-sufficiency.

25 ‘‘(h) EMPLOYMENT NETWORK PAYMENT SYSTEMS.—
147

•S 331 RS

1 ‘‘(1) ELECTION OF PAYMENT SYSTEM BY EM2 PLOYMENT NETWORKS.—

3 ‘‘(A) IN GENERAL.—The Program shall pro4 vide for payment authorized by the Commis5 sioner to employment networks under either an

6 outcome payment system or an outcome-mile7 stone payment system. Each employment net8 work shall elect which payment system will be

9 utilized by the employment network, and, for

10 such period of time as such election remains in

11 effect, the payment system so elected shall be uti12 lized exclusively in connection with such employ13 ment network (except as provided in subpara14 graph (B)).

15 ‘‘(B) NO CHANGE IN METHOD OF PAYMENT

16 FOR BENEFICIARIES WITH TICKETS ALREADY AS17 SIGNED TO THE EMPLOYMENT NETWORKS.—Any

18 election of a payment system by an employment

19 network that would result in a change in the

20 method of payment to the employment network

21 for services provided to a beneficiary who is re22 ceiving services from the employment network at

23 the time of the election shall not be effective with

24 respect to payment for services provided to that

25 beneficiary and the method of payment pre-
148

•S 331 RS

1 viously selected shall continue to apply with re2 spect to such services.

3 ‘‘(2) OUTCOME PAYMENT SYSTEM.—

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

5 system shall consist of a payment structure gov6 erning employment networks electing such sys7 tem under paragraph (1)(A) which meets the re8 quirements of this paragraph.

9 ‘‘(B) PAYMENTS MADE DURING OUTCOME

10 PAYMENT PERIOD.—The outcome payment sys11 tem shall provide for a schedule of payments to

12 an employment network in connection with each

13 individual who is a beneficiary for each month

14 during the individual’s outcome payment period

15 for which benefits (described in paragraphs (3)

16 and (4) of subsection (k)) are not payable to such

17 individual because of work or earnings.

18 ‘‘(C) COMPUTATION OF PAYMENTS TO EM19 PLOYMENT NETWORK.—The payment schedule of

20 the outcome payment system shall be designed so

21 that—

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

23 months during the outcome payment period

24 for which benefits (described in paragraphs

25 (3) and (4) of subsection (k)) are not pay-
149

•S 331 RS

1 able is equal to a fixed percentage of the

2 payment calculation base for the calendar

3 year in which such month occurs; and

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

5 percentage which does not exceed 40 percent.

6 ‘‘(3) OUTCOME-MILESTONE PAYMENT SYSTEM.—

7 ‘‘(A) IN GENERAL.—The outcome-milestone

8 payment system shall consist of a payment

9 structure governing employment networks elect10 ing such system under paragraph (1)(A) which

11 meets the requirements of this paragraph.

12 ‘‘(B) EARLY PAYMENTS UPON ATTAINMENT

13 OF MILESTONES IN ADVANCE OF OUTCOME PAY14 MENT PERIODS.—The outcome-milestone pay15 ment system shall provide for 1 or more mile16 stones with respect to beneficiaries receiving serv17 ices from an employment network under the Pro18 gram that are directed toward the goal of perma19 nent employment. Such milestones shall form a

20 part of a payment structure that provides, in

21 addition to payments made during outcome pay22 ment periods, payments made prior to outcome

23 payment periods in amounts based on the at24 tainment of such milestones.
150

•S 331 RS

1 ‘‘(C) LIMITATION ON TOTAL PAYMENTS TO

2 EMPLOYMENT NETWORK.—The payment schedule

3 of the outcome-milestone payment system shall be

4 designed so that the total of the payments to the

5 employment network with respect to each bene6 ficiary is less than, on a net present value basis

7 (using an interest rate determined by the Com8 missioner that appropriately reflects the cost of

9 funds faced by providers), the total amount to

10 which payments to the employment network with

11 respect to the beneficiary would be limited if the

12 employment network were paid under the out13 come payment system.

14 ‘‘(4) DEFINITIONS.—In this subsection:

15 ‘‘(A) PAYMENT CALCULATION BASE.—The

16 term ‘payment calculation base’ means, for any

17 calendar year—

18 ‘‘(i) in connection with a title II dis19 ability beneficiary, the average disability

20 insurance benefit payable under section 223

21 for all beneficiaries for months during the

22 preceding calendar year; and

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

24 disability beneficiary (who is not concur25 rently a title II disability beneficiary), the
151

•S 331 RS

1 average payment of supplemental security

2 income benefits based on disability payable

3 under title XVI (excluding State supplemen4 tation) for months during the preceding cal5 endar year to all beneficiaries who have at6 tained age 18 but have not attained age 65.

7 ‘‘(B) OUTCOME PAYMENT PERIOD.—The

8 term ‘outcome payment period’ means, in con9 nection with any individual who had assigned a

10 ticket to work and self-sufficiency to an employ11 ment network under the Program, a period—

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

13 ending after the date on which such ticket

14 was assigned to the employment network,

15 for which benefits (described in paragraphs

16 (3) and (4) of subsection (k)) are not pay17 able to such individual by reason of engage18 ment in substantial gainful activity or by

19 reason of earnings from work activity; and

20 ‘‘(ii) ending with the 60th month (con21 secutive or otherwise), ending after such

22 date, for which such benefits are not pay23 able to such individual by reason of engage24 ment in substantial gainful activity or by

25 reason of earnings from work activity.
152

•S 331 RS

1 ‘‘(5) PERIODIC REVIEW AND ALTERATIONS OF

2 PRESCRIBED SCHEDULES.—

3 ‘‘(A) PERCENTAGES AND PERIODS.—The

4 Commissioner shall periodically review the per5 centage specified in paragraph (2)(C), the total

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

7 and the period of time specified in paragraph

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

9 such permissible payments, and such period pro10 vide an adequate incentive for employment net11 works to assist beneficiaries to enter the work12 force, while providing for appropriate economies.

13 The Commissioner may alter such percentage,

14 such total permissible payments, or such period

15 of time to the extent that the Commissioner de16 termines, on the basis of the Commissioner’s re17 view under this paragraph, that such an alter18 ation would better provide the incentive and

19 economies described in the preceding sentence.

20 ‘‘(B) NUMBER AND AMOUNTS OF MILESTONE

21 PAYMENTS.—The Commissioner shall periodi22 cally review the number and amounts of mile23 stone payments established by the Commissioner

24 pursuant to this section to determine whether

25 they provide an adequate incentive for employ-
153

•S 331 RS

1 ment networks to assist beneficiaries to enter the

2 workforce, taking into account information pro3 vided to the Commissioner by program man4 agers, the Work Incentives Advisory Panel estab5 lished under section 201(f) of the Work Incen6 tives Improvement Act of 1999, and other reli7 able sources. The Commissioner may from time

8 to time alter the number and amounts of mile9 stone payments initially established by the Com10 missioner pursuant to this section to the extent

11 that the Commissioner determines that such an

12 alteration would allow an adequate incentive for

13 employment networks to assist beneficiaries to

14 enter the workforce. Such alteration shall be

15 based on information provided to the Commis16 sioner by program managers, the Work Incen17 tives Advisory Panel established under section

18 201(f) of the Work Incentives Improvement Act

19 of 1999, or other reliable sources.

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

21 any period for which an individual is using, as defined

22 by the Commissioner, a ticket to work and self-sufficiency

23 issued under this section, the Commissioner (and any ap24 plicable State agency) may not initiate a continuing dis25 ability review or other review under section 221 of whether
154

•S 331 RS

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

2 under title XVI similar to any such review under section

3 221.

4 ‘‘(j) ALLOCATION OF COSTS.—

5 ‘‘(1) PAYMENTS TO EMPLOYMENT NETWORKS.—

6 Payments to employment networks (including State

7 agencies that elect to participate in the Program as

8 an employment network) shall be made from the Fed9 eral Old-Age and Survivors Insurance Trust Fund or

10 the Federal Disability Insurance Trust Fund, as ap11 propriate, in the case of ticketed title II disability

12 beneficiaries who return to work, or from the appro13 priation made available for making supplemental se14 curity income payments under title XVI, in the case

15 of title XVI disability beneficiaries who return to

16 work. With respect to ticketed beneficiaries who con17 currently are entitled to benefits under title II and el18 igible for payments under title XVI who return to

19 work, the Commissioner shall allocate the cost of pay20 ments to employment networks to which the tickets of

21 such beneficiaries have been assigned among such

22 Trust Funds and appropriation, as appropriate.

23 ‘‘(2) ADMINISTRATIVE EXPENSES.—The costs of

24 administering this section (other than payments to

25 employment networks) shall be paid from amounts
155

•S 331 RS

1 made available for the administration of title II and

2 amounts made available for the administration of

3 title XVI, and shall be allocated among those amounts

4 as appropriate.

5 ‘‘(k) DEFINITIONS.—In this section:

6 ‘‘(1) COMMISSIONER.—The term ‘Commissioner’

7 means the Commissioner of Social Security.

8 ‘‘(2) DISABLED BENEFICIARY.—The term ‘dis9 abled beneficiary’ means a title II disability bene10 ficiary or a title XVI disability beneficiary.

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

12 term ‘title II disability beneficiary’ means an indi13 vidual entitled to disability insurance benefits under

14 section 223 or to monthly insurance benefits under

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

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

17 disability beneficiary for each month for which such

18 individual is entitled to such benefits.

19 ‘‘(4) TITLE XVI DISABILITY BENEFICIARY.—The

20 term ‘title XVI disability beneficiary’ means an indi21 vidual eligible for supplemental security income bene22 fits under title XVI on the basis of blindness (within

23 the meaning of section 1614(a)(2)) or disability

24 (within the meaning of section 1614(a)(3)). An indi25 vidual is a title XVI disability beneficiary for each
156

•S 331 RS

1 month for which such individual is eligible for such

2 benefits.

3 ‘‘(5) SUPPLEMENTAL SECURITY INCOME BENEFIT

4 UNDER TITLE XVI.—The term ‘supplemental security

5 income benefit under title XVI’ means a cash benefit

6 under section 1611 or 1619(a), and does not include

7 a State supplementary payment, administered feder8 ally or otherwise.

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

10 date of enactment of this section, the Commissioner shall

11 prescribe such regulations as are necessary to carry out the

12 provisions of this section.

13 ‘‘(m) REAUTHORIZATION OF PROGRAM.—

14 ‘‘(1) IN GENERAL.—The Program established

15 under this section shall terminate on the date that is

16 5 years after the date that the Commissioner com17 mences implementation of the Program.

18 ‘‘(2) ASSURANCE OF OUTCOME PAYMENT PE19 RIOD.—Notwithstanding paragraph (1)—

20 ‘‘(A) any individual who has initiated a

21 work plan in accordance with subsection (g) may

22 use services provided under the Program in ac23 cordance with this section; and
157

•S 331 RS

1 ‘‘(B) any employment network that provides

2 services to such an individual shall receive pay3 ments for such services,

4 during the individual’s outcome payment period (as

5 defined in paragraph (4)(B) of subsection (h), includ6 ing any alteration of such period in accordance with

7 paragraph (5) of that subsection).’’.

8 (b) CONFORMING AMENDMENTS.—

9 (1) AMENDMENTS TO TITLE II.—

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

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

12 the end the following:

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

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

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

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

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

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

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

20 (D) Section 225(b)(1) of the Social Security

21 Act (42 U.S.C. 425(b)(1)) is amended by striking

22 ‘‘a program of vocational rehabilitation services’’

23 and inserting ‘‘a program consisting of the Tick24 et to Work and Self-Sufficiency Program under

25 section 1148 or another program of vocational
158

•S 331 RS

1 rehabilitation services, employment services, or

2 other support services’’.

3 (2) AMENDMENTS TO TITLE XVI.—

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

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

6 follows:

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

8 individual who—

9 ‘‘(1) has not attained age 16, and

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

11 under this title,

12 the Commissioner of Social Security shall make provision

13 for referral of such individual to the appropriate State

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

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

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

17 (C) Section 1631(a)(6)(A) of the Social Se18 curity Act (42 U.S.C. 1383(a)(6)(A)) is amended

19 by striking ‘‘a program of vocational rehabilita20 tion services’’ and inserting ‘‘a program con21 sisting of the Ticket to Work and Self-Sufficiency

22 Program under section 1148 or another program

23 of vocational rehabilitation services, employment

24 services, or other support services’’.
159

•S 331 RS

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

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

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

4 (ii) by adding at the end the following:

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

6 and other reviews under this title similar to reviews under

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

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

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

10 amendments made by subsections (a) and (b) shall take ef11 fect with the first month following 1 year after the date

12 of enactment of this Act.

13 (d) GRADUATED IMPLEMENTATION OF PROGRAM.—

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

15 the date of enactment of this Act, the Commissioner

16 of Social Security shall commence implementation of

17 the amendments made by this section (other than

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

19 graduated phases at phase-in sites selected by the

20 Commissioner. Such phase-in sites shall be selected so

21 as to ensure, prior to full implementation of the Tick22 et to Work and Self-Sufficiency Program, the develop23 ment and refinement of referral processes, payment

24 systems, computer linkages, management information

25 systems, and administrative processes necessary to
160

•S 331 RS

1 provide for full implementation of such amendments.

2 Subsection (c) shall apply with respect to paragraphs

3 (1)(C) and (2)(B) of subsection (b) without regard to

4 this subsection.

5 (2) REQUIREMENTS.—Implementation of the

6 Program at each phase-in site shall be carried out on

7 a wide enough scale to permit a thorough evaluation

8 of the alternative methods under consideration, so as

9 to ensure that the most efficacious methods are deter10 mined and in place for full implementation of the

11 Program on a timely basis.

12 (3) FULL IMPLEMENTATION.—The Commissioner

13 shall ensure that the ability to provide tickets and

14 services to individuals under the Program exists in

15 every State as soon as practicable on or after the ef16 fective date specified in subsection (c) but not later

17 than 3 years after such date.

18 (4) ONGOING EVALUATION OF PROGRAM.—

19 (A) IN GENERAL.—The Commissioner shall

20 design and conduct a series of evaluations to as21 sess the cost-effectiveness of activities carried out

22 under this section and the amendments made

23 thereby, as well as the effects of this section and

24 the amendments made thereby on work outcomes
161

•S 331 RS

1 for beneficiaries receiving tickets to work and

2 self-sufficiency under the Program.

3 (B) CONSULTATION.—The Commissioner

4 shall design and carry out the series of evalua5 tions after receiving relevant advice from experts

6 in the fields of disability, vocational rehabilita7 tion, and program evaluation and individuals

8 using tickets to work and self-sufficiency under

9 the Program and consulting with the Work In10 centives Advisory Panel established under section

11 201(f), the Comptroller General of the United

12 States, other agencies of the Federal Government,

13 and private organizations with appropriate ex14 pertise.

15 (C) METHODOLOGY.—

16 (i) IMPLEMENTATION.—The Commis17 sioner, in consultation with the Work Incen18 tives Advisory Panel established under sec19 tion 201(f), shall ensure that plans for eval20 uations and data collection methods under

21 the Program are appropriately designed to

22 obtain detailed employment information.

23 (ii) SPECIFIC MATTERS TO BE AD24 DRESSED.—Each such evaluation shall ad25 dress (but is not limited to)—
162

•S 331 RS

1 (I) the annual cost (including net

2 cost) of the Program and the annual

3 cost (including net cost) that would

4 have been incurred in the absence of

5 the Program;

6 (II) the determinants of return to

7 work, including the characteristics of

8 beneficiaries in receipt of tickets under

9 the Program;

10 (III) the types of employment

11 services, vocational rehabilitation serv12 ices, and other support services fur13 nished to beneficiaries in receipt of

14 tickets under the Program who return

15 to work and to those who do not return

16 to work;

17 (IV) the duration of employment

18 services, vocational rehabilitation serv19 ices, and other support services fur20 nished to beneficiaries in receipt of

21 tickets under the Program who return

22 to work and the duration of such serv23 ices furnished to those who do not re24 turn to work and the cost to employ-
163

•S 331 RS

1 ment networks of furnishing such serv2 ices;

3 (V) the employment outcomes, in4 cluding wages, occupations, benefits,

5 and hours worked, of beneficiaries who

6 return to work after receiving tickets

7 under the Program and those who re8 turn to work without receiving such

9 tickets;

10 (VI) the characteristics of pro11 viders whose services are provided

12 within an employment network under

13 the Program;

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

15 employment networks display a greater

16 willingness to provide services to bene17 ficiaries with a range of disabilities;

18 (VIII) the characteristics (includ19 ing employment outcomes) of those

20 beneficiaries who receive services under

21 the outcome payment system and of

22 those beneficiaries who receive services

23 under the outcome-milestone payment

24 system;
164

•S 331 RS

1 (IX) measures of satisfaction

2 among beneficiaries in receipt of tick3 ets under the Program; and

4 (X) reasons for (including com5 ments solicited from beneficiaries re6 garding) their choice not to use their

7 tickets or their inability to return to

8 work despite the use of their tickets.

9 (D) PERIODIC EVALUATION REPORTS.—Fol10 lowing the close of the third and fifth fiscal years

11 ending after the effective date under subsection

12 (c), and prior to the close of the seventh fiscal

13 year ending after such date, the Commissioner

14 shall transmit to the Committee on Ways and

15 Means of the House of Representatives and the

16 Committee on Finance of the Senate a report

17 containing the Commissioner’s evaluation of the

18 progress of activities conducted under the provi19 sions of this section and the amendments made

20 thereby. Each such report shall set forth the

21 Commissioner’s evaluation of the extent to which

22 the Program has been successful and the Com23 missioner’s conclusions on whether or how the

24 Program should be modified. Each such report

25 shall include such data, findings, materials, and
165

•S 331 RS

1 recommendations as the Commissioner may con2 sider appropriate.

3 (5) EXTENT OF STATE’S RIGHT OF FIRST RE4 FUSAL IN ADVANCE OF FULL IMPLEMENTATION OF

5 AMENDMENTS IN SUCH STATE.—

6 (A) IN GENERAL.—In the case of any State

7 in which the amendments made by subsection (a)

8 have not been fully implemented pursuant to this

9 subsection, the Commissioner shall determine by

10 regulation the extent to which—

11 (i) the requirement under section

12 222(a) of the Social Security Act for

13 prompt referrals to a State agency, and

14 (ii) the authority of the Commissioner

15 under section 222(d)(2) of the Social Secu16 rity Act to provide vocational rehabilitation

17 services in such State by agreement or con18 tract with other public or private agencies,

19 organizations, institutions, or individuals,

20 shall apply in such State.

21 (B) EXISTING AGREEMENTS.—Nothing in

22 subparagraph (A) or the amendments made by

23 subsection (a) shall be construed to limit, im24 pede, or otherwise affect any agreement entered

25 into pursuant to section 222(d)(2) of the Social
166

•S 331 RS

1 Security Act before the date of enactment of this

2 Act with respect to services provided pursuant to

3 such agreement to beneficiaries receiving services

4 under such agreement as of such date, except

5 with respect to services (if any) to be provided

6 after 3 years after the effective date provided in

7 subsection (c).

8 (e) SPECIFIC REGULATIONS REQUIRED.—

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

10 Security shall prescribe such regulations as are nec11 essary to implement the amendments made by this

12 section.

13 (2) SPECIFIC MATTERS TO BE INCLUDED IN REG14 ULATIONS.—The matters which shall be addressed in

15 such regulations shall include—

16 (A) the form and manner in which tickets

17 to work and self-sufficiency may be distributed to

18 beneficiaries pursuant to section 1148(b)(1) of

19 the Social Security Act;

20 (B) the format and wording of such tickets,

21 which shall incorporate by reference any contrac22 tual terms governing service by employment net23 works under the Program;

24 (C) the form and manner in which State

25 agencies may elect participation in the Ticket to
167

•S 331 RS

1 Work and Self-Sufficiency Program (and revoke

2 such an election) pursuant to section 1148(c)(1)

3 of the Social Security Act and provision for

4 periodic opportunities for exercising such elec5 tions (and revocations);

6 (D) the status of State agencies under sec7 tion 1148(c)(1) at the time that State agencies

8 exercise elections (and revocations) under that

9 section;

10 (E) the terms of agreements to be entered

11 into with program managers pursuant to section

12 1148(d) of the Social Security Act, including—

13 (i) the terms by which program man14 agers are precluded from direct participa15 tion in the delivery of services pursuant to

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

17 Act;

18 (ii) standards which must be met by

19 quality assurance measures referred to in

20 paragraph (6) of section 1148(d) and meth21 ods of recruitment of employment networks

22 utilized pursuant to paragraph (2) of sec23 tion 1148(e); and
168

•S 331 RS

1 (iii) the format under which dispute

2 resolution will operate under section

3 1148(d)(7);

4 (F) the terms of agreements to be entered

5 into with employment networks pursuant to sec6 tion 1148(d)(4) of the Social Security Act,

7 including—

8 (i) the manner in which service areas

9 are specified pursuant to section

10 1148(f)(2)(A) of the Social Security Act;

11 (ii) the general selection criteria and

12 the specific selection criteria which are ap13 plicable to employment networks under sec14 tion 1148(f)(1)(C) of the Social Security

15 Act in selecting service providers;

16 (iii) specific requirements relating to

17 annual financial reporting by employment

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

19 the Social Security Act; and

20 (iv) the national model to which peri21 odic outcomes reporting by employment net22 works must conform under section

23 1148(f)(4) of the Social Security Act;
169

•S 331 RS

1 (G) standards which must be met by indi2 vidual work plans pursuant to section 1148(g) of

3 the Social Security Act;

4 (H) standards which must be met by pay5 ment systems required under section 1148(h) of

6 the Social Security Act, including—

7 (i) the form and manner in which elec8 tions by employment networks of payment

9 systems are to be exercised pursuant to sec10 tion 1148(h)(1)(A);

11 (ii) the terms which must be met by an

12 outcome payment system under section

13 1148(h)(2);

14 (iii) the terms which must be met by

15 an outcome-milestone payment system

16 under section 1148(h)(3);

17 (iv) any revision of the percentage

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

19 1148(h) of the Social Security Act or the

20 period of time specified in paragraph

21 (4)(B) of such section 1148(h); and

22 (v) annual oversight procedures for

23 such systems; and

24 (I) procedures for effective oversight of the

25 Program by the Commissioner of Social Secu-
170

•S 331 RS

1 rity, including periodic reviews and reporting

2 requirements.

3 (f) WORK INCENTIVES ADVISORY PANEL.—

4 (1) ESTABLISHMENT.—There is established with5 in the Social Security Administration a panel to be

6 known as the ‘‘Work Incentives Advisory Panel’’ (in

7 this subsection referred to as the ‘‘Panel’’).

8 (2) DUTIES OF PANEL.—It shall be the duty of

9 the Panel to—

10 (A) advise the Secretary of Health and

11 Human Services, the Secretary of Labor, the

12 Secretary of Education, and the Commissioner of

13 Social Security on issues related to work incen14 tives programs, planning, and assistance for in15 dividuals with disabilities, including work in16 centive provisions under titles II, XI, XVI,

17 XVIII, and XIX of the Social Security Act (42

18 U.S.C. 401 et seq., 1301 et seq., 1381 et seq.,

19 1395 et seq., 1396 et seq.); and

20 (B) with respect to the Ticket to Work and

21 Self-Sufficiency Program established under sec22 tion 1148 of the Social Security Act—

23 (i) advise the Commissioner of Social

24 Security with respect to establishing phase25 in sites for such Program and fully imple-
171

•S 331 RS

1 menting the Program thereafter, the refine2 ment of access of disabled beneficiaries to

3 employment networks, payment systems,

4 and management information systems, and

5 advise the Commissioner whether such

6 measures are being taken to the extent nec7 essary to ensure the success of the Program;

8 (ii) advise the Commissioner regarding

9 the most effective designs for research and

10 demonstration projects associated with the

11 Program or conducted pursuant to section

12 302;

13 (iii) advise the Commissioner on the

14 development of performance measurements

15 relating to quality assurance under section

16 1148(d)(6) of the Social Security Act; and

17 (iv) furnish progress reports on the

18 Program to the Commissioner and each

19 House of Congress.

20 (3) MEMBERSHIP.—

21 (A) NUMBER AND APPOINTMENT.—The

22 Panel shall be composed of 12 members ap23 pointed by the Commissioner of Social Security

24 in consultation with the Speaker of the House of

25 Representatives, the Minority Leader of the
172

•S 331 RS

1 House of Representatives, the Majority Leader of

2 the Senate, and the Minority Leader of the Sen3 ate.

4 (B) REPRESENTATION.—All members ap5 pointed to the Panel shall have experience or ex6 pert knowledge in the fields of, or related to,

7 work incentive programs, employment services,

8 vocational rehabilitation services, health care

9 services, and other support services for individ10 uals with disabilities. At least 7 members of the

11 Panel shall be individuals with disabilities or

12 representatives of individuals with disabilities,

13 except that, of those 7 members, at least 5 mem14 bers shall be current or former title II disability

15 beneficiaries or title XVI disability beneficiaries

16 (as such terms are defined in section 1148(k) of

17 the Social Security Act (as added by subsection

18 (a)).

19 (C) TERMS.—

20 (i) IN GENERAL.—Each member shall

21 be appointed for a term of 4 years (or, if

22 less, for the remaining life of the Panel), ex23 cept as provided in clauses (ii) and (iii).

24 The initial members shall be appointed not
173

•S 331 RS

1 later than 90 days after the date of enact2 ment of this Act.

3 (ii) TERMS OF INITIAL APPOINTEES.—

4 As designated by the Commissioner at the

5 time of appointment, of the members first

6 appointed—

7 (I) 6 of the members appointed

8 under subparagraph (A) shall be ap9 pointed for a term of 2 years; and

10 (II) 6 of the members appointed

11 under subparagraph (A) shall be ap12 pointed for a term of 4 years.

13 (iii) VACANCIES.—Any member ap14 pointed to fill a vacancy occurring before

15 the expiration of the term for which the

16 member’s predecessor was appointed shall be

17 appointed only for the remainder of that

18 term. A member may serve after the expira19 tion of that member’s term until a successor

20 has taken office. A vacancy in the Panel

21 shall be filled in the manner in which the

22 original appointment was made.

23 (D) BASIC PAY.—Members shall each be

24 paid at a rate, and in a manner, that is con25 sistent with guidelines established under section
174

•S 331 RS

1 7 of the Federal Advisory Committee Act (5

2 U.S.C. App.).

3 (E) TRAVEL EXPENSES.—Each member

4 shall receive travel expenses, including per diem

5 in lieu of subsistence, in accordance with sections

6 5702 and 5703 of title 5, United States Code.

7 (F) QUORUM.—Eight members of the Panel

8 shall constitute a quorum but a lesser number

9 may hold hearings.

10 (G) CHAIRPERSON.—The Chairperson of the

11 Panel shall be designated by the Commissioner.

12 The term of office of the Chairperson shall be 4

13 years.

14 (H) MEETINGS.—The Panel shall meet at

15 least quarterly and at other times at the call of

16 the Chairperson or a majority of its members.

17 (4) DIRECTOR AND STAFF OF PANEL; EXPERTS

18 AND CONSULTANTS.—

19 (A) DIRECTOR.—The Panel shall have a Di20 rector who shall be appointed by the Commis21 sioner and paid at a rate, and in a manner,

22 that is consistent with guidelines established

23 under section 7 of the Federal Advisory Com24 mittee Act (5 U.S.C. App.).
175

•S 331 RS

1 (B) STAFF.—Subject to rules prescribed by

2 the Commissioner, the Director may appoint and

3 fix the pay of additional personnel as the Direc4 tor considers appropriate.

5 (C) EXPERTS AND CONSULTANTS.—Subject

6 to rules prescribed by the Commissioner, the Di7 rector may procure temporary and intermittent

8 services under section 3109(b) of title 5, United

9 States Code.

10 (D) STAFF OF FEDERAL AGENCIES.—Upon

11 request of the Panel, the head of any Federal de12 partment or agency may detail, on a reimburs13 able basis, any of the personnel of that depart14 ment or agency to the Panel to assist it in car15 rying out its duties under this subsection.

16 (5) POWERS OF PANEL.—

17 (A) HEARINGS AND SESSIONS.—The Panel

18 may, for the purpose of carrying out its duties

19 under this subsection, hold such hearings, sit and

20 act at such times and places, and take such testi21 mony and evidence as the Panel considers appro22 priate.

23 (B) POWERS OF MEMBERS AND AGENTS.—

24 Any member or agent of the Panel may, if au-
176

•S 331 RS

1 thorized by the Panel, take any action which the

2 Panel is authorized to take by this subsection.

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

4 States mails in the same manner and under the

5 same conditions as other departments and agen6 cies of the United States.

7 (6) REPORTS.—

8 (A) INTERIM REPORTS.—The Panel shall

9 submit to the President and Congress interim re10 ports at least annually.

11 (B) FINAL REPORT.—The Panel shall trans12 mit a final report to the President and Congress

13 not later than 8 years after the date of enact14 ment of this Act. The final report shall contain

15 a detailed statement of the findings and conclu16 sions of the Panel, together with its recommenda17 tions for legislation and administrative actions

18 which the Panel considers appropriate.

19 (7) TERMINATION.—The Panel shall terminate

20 30 days after the date of the submission of its final

21 report under paragraph (6)(B).

22 (8) ALLOCATION OF COSTS.—The costs of car23 rying out this subsection shall be paid from amounts

24 made available for the administration of title II of

25 the Social Security Act (42 U.S.C. 401 et seq.) and
177

•S 331 RS

1 amounts made available for the administration of

2 title XVI of that Act (42 U.S.C. 1381 et seq.), and

3 shall be allocated among those amounts as appro4 priate.

5 Subtitle B—Elimination of Work

6 Disincentives

7 SEC. 211. WORK ACTIVITY STANDARD AS A BASIS FOR RE8 VIEW OF AN INDIVIDUAL’S DISABLED STATUS.

9 Section 221 of the Social Security Act (42 U.S.C. 421)

10 is amended by adding at the end the following:

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

12 disability insurance benefits under section 223 or to month13 ly insurance benefits under section 202 based on such indi14 vidual’s disability (as defined in section 223(d)) has re15 ceived such benefits for at least 24 months—

16 ‘‘(A) no continuing disability review conducted

17 by the Commissioner may be scheduled for the indi18 vidual solely as a result of the individual’s work ac19 tivity;

20 ‘‘(B) no work activity engaged in by the indi21 vidual may be used as evidence that the individual is

22 no longer disabled; and

23 ‘‘(C) no cessation of work activity by the indi24 vidual may give rise to a presumption that the indi25 vidual is unable to engage in work.
178

•S 331 RS

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

2 shall continue to be subject to—

3 ‘‘(A) continuing disability reviews on a regu4 larly scheduled basis that is not triggered by work;

5 and

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

7 the event that the individual has earnings that exceed

8 the level of earnings established by the Commissioner

9 to represent substantial gainful activity.’’.

10 SEC. 212. EXPEDITED REINSTATEMENT OF DISABILITY BEN11 EFITS.

12 (a) OASDI BENEFITS.—Section 223 of the Social Se13 curity Act (42 U.S.C. 423) is amended—

14 (1) by redesignating subsection (i) as subsection

15 (j); and

16 (2) by inserting after subsection (h) the fol17 lowing:

18 ‘‘Reinstatement of Entitlement

19 ‘‘(i)(1)(A) Entitlement to benefits described in sub20 paragraph (B)(i)(I) shall be reinstated in any case where

21 the Commissioner determines that an individual described

22 in subparagraph (B) has filed a request for reinstatement

23 meeting the requirements of paragraph (2)(A) during the

24 period prescribed in subparagraph (C). Reinstatement of
179

•S 331 RS

1 such entitlement shall be in accordance with the terms of

2 this subsection.

3 ‘‘(B) An individual is described in this subparagraph

4 if—

5 ‘‘(i) prior to the month in which the individual

6 files a request for reinstatement—

7 ‘‘(I) the individual was entitled to benefits

8 under this section or section 202 on the basis of

9 disability pursuant to an application filed there10 fore; and

11 ‘‘(II) such entitlement terminated due to the

12 performance of substantial gainful activity;

13 ‘‘(ii) the individual is under a disability and the

14 physical or mental impairment that is the basis for

15 the finding of disability is the same as (or related to)

16 the physical or mental impairment that was the basis

17 for the finding of disability that gave rise to the enti18 tlement described in clause (i); and

19 ‘‘(iii) the individual’s disability renders the in20 dividual unable to perform substantial gainful activ21 ity.

22 ‘‘(C)(i) Except as provided in clause (ii), the period

23 prescribed in this subparagraph with respect to an indi24 vidual is 60 consecutive months beginning with the month

25 following the most recent month for which the individual
180

•S 331 RS

1 was entitled to a benefit described in subparagraph

2 (B)(i)(I) prior to the entitlement termination described in

3 subparagraph (B)(i)(II).

4 ‘‘(ii) In the case of an individual who fails to file a

5 reinstatement request within the period prescribed in clause

6 (i), the Commissioner may extend the period if the Commis7 sioner determines that the individual had good cause for

8 the failure to so file.

9 ‘‘(2)(A)(i) A request for reinstatement shall be filed in

10 such form, and containing such information, as the Com11 missioner may prescribe.

12 ‘‘(ii) A request for reinstatement shall include express

13 declarations by the individual that the individual meets the

14 requirements specified in clauses (ii) and (iii) of paragraph

15 (1)(B).

16 ‘‘(B) A request for reinstatement filed in accordance

17 with subparagraph (A) may constitute an application for

18 benefits in the case of any individual who the Commissioner

19 determines is not entitled to reinstated benefits under this

20 subsection.

21 ‘‘(3) In determining whether an individual meets the

22 requirements of paragraph (1)(B)(ii), the provisions of sub23 section (f) shall apply.

24 ‘‘(4)(A)(i) Subject to clause (ii), entitlement to benefits

25 reinstated under this subsection shall commence with the
181

•S 331 RS

1 benefit payable for the month in which a request for rein2 statement is filed.

3 ‘‘(ii) An individual whose entitlement to a benefit for

4 any month would have been reinstated under this subsection

5 had the individual filed a request for reinstatement before

6 the end of such month shall be entitled to such benefit for

7 such month if such request for reinstatement is filed before

8 the end of the twelfth month immediately succeeding such

9 month.

10 ‘‘(B)(i) Subject to clauses (ii) and (iii), the amount

11 of the benefit payable for any month pursuant to the rein12 statement of entitlement under this subsection shall be deter13 mined in accordance with the provisions of this title.

14 ‘‘(ii) For purposes of computing the primary insur15 ance amount of an individual whose entitlement to benefits

16 under this section is reinstated under this subsection, the

17 date of onset of the individual’s disability shall be the date

18 of onset used in determining the individual’s most recent

19 period of disability arising in connection with such benefits

20 payable on the basis of an application.

21 ‘‘(iii) Benefits under this section or section 202 pay22 able for any month pursuant to a request for reinstatement

23 filed in accordance with paragraph (2) shall be reduced by

24 the amount of any provisional benefit paid to such indi25 vidual for such month under paragraph (7).
182

•S 331 RS

1 ‘‘(C) No benefit shall be payable pursuant to an enti2 tlement reinstated under this subsection to an individual

3 for any month in which the individual engages in substan4 tial gainful activity.

5 ‘‘(D) The entitlement of any individual that is rein6 stated under this subsection shall end with the benefits pay7 able for the month preceding whichever of the following

8 months is the earliest:

9 ‘‘(i) The month in which the individual dies.

10 ‘‘(ii) The month in which the individual attains

11 retirement age.

12 ‘‘(iii) The third month following the month in

13 which the individual’s disability ceases.

14 ‘‘(5) Whenever an individual’s entitlement to benefits

15 under this section is reinstated under this subsection, enti16 tlement to benefits payable on the basis of such individual’s

17 wages and self-employment income may be reinstated with

18 respect to any person previously entitled to such benefits

19 on the basis of an application if the Commissioner deter20 mines that such person satisfies all the requirements for en21 titlement to such benefits except requirements related to the

22 filing of an application. The provisions of paragraph (4)

23 shall apply to the reinstated entitlement of any such person

24 to the same extent that they apply to the reinstated entitle25 ment of such individual.
183

•S 331 RS

1 ‘‘(6) An individual to whom benefits are payable under

2 this section or section 202 pursuant to a reinstatement of

3 entitlement under this subsection for 24 months (whether

4 or not consecutive) shall, with respect to benefits so payable

5 after such twenty-fourth month, be deemed for purposes of

6 paragraph (1)(B)(i)(I) and the determination, if appro7 priate, of the termination month in accordance with sub8 section (a)(1) of this section, or subsection (d)(1), (e)(1),

9 or (f)(1) of section 202, to be entitled to such benefits on

10 the basis of an application filed therefore.

11 ‘‘(7)(A) An individual described in paragraph (1)(B)

12 who files a request for reinstatement in accordance with the

13 provisions of paragraph (2)(A) shall be entitled to provi14 sional benefits payable in accordance with this paragraph,

15 unless the Commissioner determines that the individual

16 does not meet the requirements of paragraph (1)(B)(i) or

17 that the individual’s declaration under paragraph

18 (2)(A)(ii) is false. Any such determination by the Commis19 sioner shall be final and not subject to review under sub20 section (b) or (g) of section 205.

21 ‘‘(B) The amount of a provisional benefit for a month

22 shall equal the amount of the last monthly benefit payable

23 to the individual under this title on the basis of an applica24 tion increased by an amount equal to the amount, if any,
184

•S 331 RS

1 by which such last monthly benefit would have been in2 creased as a result of the operation of section 215(i).

3 ‘‘(C)(i) Provisional benefits shall begin with the month

4 in which a request for reinstatement is filed in accordance

5 with paragraph (2)(A).

6 ‘‘(ii) Provisional benefits shall end with the earliest

7 of—

8 ‘‘(I) the month in which the Commissioner

9 makes a determination regarding the individual’s en10 titlement to reinstated benefits;

11 ‘‘(II) the fifth month following the month de12 scribed in clause (i);

13 ‘‘(III) the month in which the individual per14 forms substantial gainful activity; or

15 ‘‘(IV) the month in which the Commissioner de16 termines that the individual does not meet the re17 quirements of paragraph (1)(B)(i) or that the indi18 vidual’s declaration made in accordance with para19 graph (2)(A)(ii) is false.

20 ‘‘(D) In any case in which the Commissioner deter21 mines that an individual is not entitled to reinstated bene22 fits, any provisional benefits paid to the individual under

23 this paragraph shall not be subject to recovery as an over24 payment unless the Commissioner determines that the indi-
185

•S 331 RS

1 vidual knew or should have known that the individual did

2 not meet the requirements of paragraph (1)(B).’’.

3 (b) SSI BENEFITS.—

4 (1) IN GENERAL.—Section 1631 of the Social Se5 curity Act (42 U.S.C. 1383) is amended by adding at

6 the end the following:

7 ‘‘Reinstatement of Eligibility on the Basis of Blindness or

8 Disability

9 ‘‘(p)(1)(A) Eligibility for benefits under this title shall

10 be reinstated in any case where the Commissioner deter11 mines that an individual described in subparagraph (B)

12 has filed a request for reinstatement meeting the require13 ments of paragraph (2)(A) during the period prescribed in

14 subparagraph (C). Reinstatement of eligibility shall be in

15 accordance with the terms of this subsection.

16 ‘‘(B) An individual is described in this subparagraph

17 if—

18 ‘‘(i) prior to the month in which the individual

19 files a request for reinstatement—

20 ‘‘(I) the individual was eligible for benefits

21 under this title on the basis of blindness or dis22 ability pursuant to an application filed there23 fore; and

24 ‘‘(II) the individual thereafter was ineligible

25 for such benefits due to earned income (or earned
186

•S 331 RS

1 and unearned income) for a period of 12 or more

2 consecutive months;

3 ‘‘(ii) the individual is blind or disabled and the

4 physical or mental impairment that is the basis for

5 the finding of blindness or disability is the same as

6 (or related to) the physical or mental impairment

7 that was the basis for the finding of blindness or dis8 ability that gave rise to the eligibility described in

9 clause (i);

10 ‘‘(iii) the individual’s blindness or disability

11 renders the individual unable to perform substantial

12 gainful activity; and

13 ‘‘(iv) the individual satisfies the nonmedical re14 quirements for eligibility for benefits under this title.

15 ‘‘(C)(i) Except as provided in clause (ii), the period

16 prescribed in this subparagraph with respect to an indi17 vidual is 60 consecutive months beginning with the month

18 following the most recent month for which the individual

19 was eligible for a benefit under this title (including section

20 1619) prior to the period of ineligibility described in sub21 paragraph (B)(i)(II).

22 ‘‘(ii) In the case of an individual who fails to file a

23 reinstatement request within the period prescribed in clause

24 (i), the Commissioner may extend the period if the Commis-
187

•S 331 RS

1 sioner determines that the individual had good cause for

2 the failure to so file.

3 ‘‘(2)(A)(i) A request for reinstatement shall be filed in

4 such form, and containing such information, as the Com5 missioner may prescribe.

6 ‘‘(ii) A request for reinstatement shall include express

7 declarations by the individual that the individual meets the

8 requirements specified in clauses (ii) through (iv) of para9 graph (1)(B).

10 ‘‘(B) A request for reinstatement filed in accordance

11 with subparagraph (A) may constitute an application for

12 benefits in the case of any individual who the Commissioner

13 determines is not eligible for reinstated benefits under this

14 subsection.

15 ‘‘(3) In determining whether an individual meets the

16 requirements of paragraph (1)(B)(ii), the provisions of sec17 tion 1614(a)(4) shall apply.

18 ‘‘(4)(A) Eligibility for benefits reinstated under this

19 subsection shall commence with the benefit payable for the

20 month following the month in which a request for reinstate21 ment is filed.

22 ‘‘(B)(i) Subject to clause (ii), the amount of the benefit

23 payable for any month pursuant to the reinstatement of eli24 gibility under this subsection shall be determined in accord25 ance with the provisions of this title.
188

•S 331 RS

1 ‘‘(ii) The benefit under this title payable for any

2 month pursuant to a request for reinstatement filed in ac3 cordance with paragraph (2) shall be reduced by the

4 amount of any provisional benefit paid to such individual

5 for such month under paragraph (7).

6 ‘‘(C) Except as otherwise provided in this subsection,

7 eligibility for benefits under this title reinstated pursuant

8 to a request filed under paragraph (2) shall be subject to

9 the same terms and conditions as eligibility established pur10 suant to an application filed therefore.

11 ‘‘(5) Whenever an individual’s eligibility for benefits

12 under this title is reinstated under this subsection, eligi13 bility for such benefits shall be reinstated with respect to

14 the individual’s spouse if such spouse was previously an

15 eligible spouse of the individual under this title and the

16 Commissioner determines that such spouse satisfies all the

17 requirements for eligibility for such benefits except require18 ments related to the filing of an application. The provisions

19 of paragraph (4) shall apply to the reinstated eligibility

20 of the spouse to the same extent that they apply to the rein21 stated eligibility of such individual.

22 ‘‘(6) An individual to whom benefits are payable under

23 this title pursuant to a reinstatement of eligibility under

24 this subsection for twenty-four months (whether or not con25 secutive) shall, with respect to benefits so payable after such
189

•S 331 RS

1 twenty-fourth month, be deemed for purposes of paragraph

2 (1)(B)(i)(I) to be eligible for such benefits on the basis of

3 an application filed therefore.

4 ‘‘(7)(A) An individual described in paragraph (1)(B)

5 who files a request for reinstatement in accordance with the

6 provisions of paragraph (2)(A) shall be eligible for provi7 sional benefits payable in accordance with this paragraph,

8 unless the Commissioner determines that the individual

9 does not meet the requirements of paragraph (1)(B)(i) or

10 that the individual’s declaration under paragraph

11 (2)(A)(ii) is false. Any such determination by the Commis12 sioner shall be final and not subject to review under para13 graph (1) or (3) of subsection (c).

14 ‘‘(B)(i) Except as otherwise provided in clause (ii), the

15 amount of a provisional benefit for a month shall equal the

16 amount of the monthly benefit that would be payable to an

17 eligible individual under this title with the same kind and

18 amount of income.

19 ‘‘(ii) If the individual has a spouse who was previously

20 an eligible spouse of the individual under this title and the

21 Commissioner determines that such spouse satisfies all the

22 requirements of section 1614(b) except requirements related

23 to the filing of an application, the amount of a provisional

24 benefit for a month shall equal the amount of the month

25 benefit that would be payable to an eligible individual and
190

•S 331 RS

1 eligible spouse under this title with the same kind and

2 amount of income.

3 ‘‘(C)(i) Provisional benefits shall begin with the month

4 following the month in which a request for reinstatement

5 is filed in accordance with paragraph (2)(A).

6 ‘‘(ii) Provisional benefits shall end with the earliest

7 of—

8 ‘‘(I) the month in which the Commissioner

9 makes a determination regarding the individual’s eli10 gibility for reinstated benefits;

11 ‘‘(II) the fifth month following the month for

12 which provisional benefits are first payable under

13 clause (i); or

14 ‘‘(III) the month in which the Commissioner de15 termines that the individual does not meet the re16 quirements of paragraph (1)(B)(i) or that the indi17 vidual’s declaration made in accordance with para18 graph (2)(A)(ii) is false.

19 ‘‘(D) In any case in which the Commissioner deter20 mines that an individual is not eligible for reinstated bene21 fits, any provisional benefits paid to the individual under

22 this paragraph shall not be subject to recovery as an over23 payment unless the Commissioner determines that the indi24 vidual knew or should have known that the individual did

25 not meet the requirements of paragraph (1)(B).
191

•S 331 RS

1 ‘‘(8) For purposes of this subsection other than para2 graph (7), the term ‘benefits under this title’ includes State

3 supplementary payments made pursuant to an agreement

4 under section 1616(a) or section 212(b) of Public Law 93–

5 66.’’.

6 (2) CONFORMING AMENDMENTS.—

7 (A) Section 1631(j)(1) of such Act (42

8 U.S.C. 1383(j)(1)) is amended by striking the pe9 riod and inserting ‘‘, or has filed a request for

10 reinstatement of eligibility under subsection

11 (p)(2) and been determined to be eligible for re12 instatement.’’.

13 (B) Section 1631(j)(2)(A)(i)(I) of such Act

14 (42 U.S.C. 1383(j)(2)(A)(i)(I)) is amended by

15 inserting ‘‘(other than pursuant to a request for

16 reinstatement under subsection (p))’’ after ‘‘eligi17 ble’’.

18 (c) EFFECTIVE DATE.—

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

20 this section shall take effect on the first day of the

21 thirteenth month beginning after the date of enact22 ment of this Act.

23 (2) LIMITATION.—No benefit shall be payable

24 under title II or XVI of the Social Security Act on

25 the basis of a request for reinstatement filed under
192

•S 331 RS

1 section 223(i) or 1631(p) of such Act before the effec2 tive date described in paragraph (1).

3 Subtitle C—Work Incentives Plan4 ning, Assistance, and Outreach

5 SEC. 221. WORK INCENTIVES OUTREACH PROGRAM.

6 Part A of title XI of the Social Security Act (42 U.S.C.

7 1301 et seq.), as amended by section 201, is amended by

8 adding after section 1148 the following:

9 ‘‘WORK INCENTIVES OUTREACH PROGRAM

10 ‘‘SEC. 1149. (a) ESTABLISHMENT.—

11 ‘‘(1) IN GENERAL.—The Commissioner, in con12 sultation with the Work Incentives Advisory Panel es13 tablished under section 201(f) of the Work Incentives

14 Improvement Act of 1999, shall establish a commu15 nity-based work incentives planning and assistance

16 program for the purpose of disseminating accurate in17 formation to disabled beneficiaries on work incentives

18 programs and issues related to such programs.

19 ‘‘(2) GRANTS, COOPERATIVE AGREEMENTS, CON20 TRACTS, AND OUTREACH.—Under the program estab21 lished under this section, the Commissioner shall—

22 ‘‘(A) establish a competitive program of

23 grants, cooperative agreements, or contracts to

24 provide benefits planning and assistance, includ25 ing information on the availability of protection

26 and advocacy services, to disabled beneficiaries,
193

•S 331 RS

1 including individuals participating in the Ticket

2 to Work and Self-Sufficiency Program estab3 lished under section 1148, the program estab4 lished under section 1619, and other programs

5 that are designed to encourage disabled bene6 ficiaries to work;

7 ‘‘(B) conduct directly, or through grants, co8 operative agreements, or contracts, ongoing out9 reach efforts to disabled beneficiaries (and to the

10 families of such beneficiaries) who are poten11 tially eligible to participate in Federal or State

12 work incentive programs that are designed to as13 sist disabled beneficiaries to work, including—

14 ‘‘(i) preparing and disseminating in15 formation explaining such programs; and

16 ‘‘(ii) working in cooperation with other

17 Federal, State, and private agencies and

18 nonprofit organizations that serve disabled

19 beneficiaries, and with agencies and organi20 zations that focus on vocational rehabilita21 tion and work-related training and coun22 seling;

23 ‘‘(C) establish a corps of trained, accessible,

24 and responsive work incentives specialists within

25 the Social Security Administration who will spe-
194

•S 331 RS

1 cialize in disability work incentives under titles

2 II and XVI for the purpose of disseminating ac3 curate information with respect to inquiries and

4 issues relating to work incentives to—

5 ‘‘(i) disabled beneficiaries;

6 ‘‘(ii) benefit applicants under titles II

7 and XVI; and

8 ‘‘(iii) individuals or entities awarded

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

10 and

11 ‘‘(D) provide—

12 ‘‘(i) training for work incentives spe13 cialists and individuals providing planning

14 assistance described in subparagraph (C);

15 and

16 ‘‘(ii) technical assistance to organiza17 tions and entities that are designed to en18 courage disabled beneficiaries to return to

19 work.

20 ‘‘(3) COORDINATION WITH OTHER PROGRAMS.—

21 The responsibilities of the Commissioner established

22 under this section shall be coordinated with other

23 public and private programs that provide informa24 tion and assistance regarding rehabilitation services

25 and independent living supports and benefits plan-
195

•S 331 RS

1 ning for disabled beneficiaries including the program

2 under section 1619, the plans for achieving self-sup3 port program (PASS), and any other Federal or

4 State work incentives programs that are designed to

5 assist disabled beneficiaries, including educational

6 agencies that provide information and assistance re7 garding rehabilitation, school-to-work programs, tran8 sition services (as defined in, and provided in accord9 ance with, the Individuals with Disabilities Edu10 cation Act (20 U.S.C. 1400 et seq.)), a one-stop deliv11 ery system established under subtitle B of title I of the

12 Workforce Investment Act of 1998, and other services.

13 ‘‘(b) CONDITIONS.—

14 ‘‘(1) SELECTION OF ENTITIES.—

15 ‘‘(A) APPLICATION.—An entity shall submit

16 an application for a grant, cooperative agree17 ment, or contract to provide benefits planning

18 and assistance to the Commissioner at such time,

19 in such manner, and containing such informa20 tion as the Commissioner may determine is nec21 essary to meet the requirements of this section.

22 ‘‘(B) STATEWIDENESS.—The Commissioner

23 shall ensure that the planning, assistance, and

24 information described in paragraph (2) shall be

25 available on a statewide basis.
196

•S 331 RS

1 ‘‘(C) ELIGIBILITY OF STATES AND PRIVATE

2 ORGANIZATIONS.—

3 ‘‘(i) IN GENERAL.—The Commissioner

4 may award a grant, cooperative agreement,

5 or contract under this section to a State or

6 a private agency or organization (other

7 than Social Security Administration Field

8 Offices and the State agency administering

9 the State medicaid program under title

10 XIX, including any agency or entity de11 scribed in clause (ii), that the Commissioner

12 determines is qualified to provide the plan13 ning, assistance, and information described

14 in paragraph (2)).

15 ‘‘(ii) AGENCIES AND ENTITIES DE16 SCRIBED.—The agencies and entities de17 scribed in this clause are the following:

18 ‘‘(I) Any public or private agency

19 or organization (including Centers for

20 Independent Living established under

21 title VII of the Rehabilitation Act of

22 1973, protection and advocacy organi23 zations, client assistance programs es24 tablished in accordance with section

25 112 of the Rehabilitation Act of 1973,
197

•S 331 RS

1 and State Developmental Disabilities

2 Councils established in accordance

3 with section 124 of the Developmental

4 Disabilities Assistance and Bill of

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

6 Commissioner determines satisfies the

7 requirements of this section.

8 ‘‘(II) The State agency admin9 istering the State program funded

10 under part A of title IV.

11 ‘‘(D) EXCLUSION FOR CONFLICT OF INTER12 EST.—The Commissioner may not award a

13 grant, cooperative agreement, or contract under

14 this section to any entity that the Commissioner

15 determines would have a conflict of interest if the

16 entity were to receive a grant, cooperative agree17 ment, or contract under this section.

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

19 grant, cooperative agreement, or contract to provide

20 benefits planning and assistance shall select individ21 uals who will act as planners and provide informa22 tion, guidance, and planning to disabled beneficiaries

23 on the—

24 ‘‘(A) availability and interrelation of any

25 Federal or State work incentives programs de-
198

•S 331 RS

1 signed to assist disabled beneficiaries that the in2 dividual may be eligible to participate in;

3 ‘‘(B) adequacy of any health benefits cov4 erage that may be offered by an employer of the

5 individual and the extent to which other health

6 benefits coverage may be available to the indi7 vidual; and

8 ‘‘(C) availability of protection and advocacy

9 services for disabled beneficiaries and how to ac10 cess such services.

11 ‘‘(3) AMOUNT OF GRANTS, COOPERATIVE AGREE12 MENTS, OR CONTRACTS.—

13 ‘‘(A) BASED ON POPULATION OF DISABLED

14 BENEFICIARIES.—Subject to subparagraph (B),

15 the Commissioner shall award a grant, coopera16 tive agreement, or contract under this section to

17 an entity based on the percentage of the popu18 lation of the State where the entity is located

19 who are disabled beneficiaries.

20 ‘‘(B) LIMITATIONS.—

21 ‘‘(i) PER GRANT.—No entity shall re22 ceive a grant, cooperative agreement, or

23 contract under this section for a fiscal year

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

25 $300,000.
199

•S 331 RS

1 ‘‘(ii) TOTAL AMOUNT FOR ALL GRANTS,

2 COOPERATIVE AGREEMENTS, AND CON3 TRACTS.—The total amount of all grants,

4 cooperative agreements, and contracts

5 awarded under this section for a fiscal year

6 may not exceed $23,000,000.

7 ‘‘(4) ALLOCATION OF COSTS.—The costs of car8 rying out this section shall be paid from amounts

9 made available for the administration of title II and

10 amounts made available for the administration of

11 title XVI, and shall be allocated among those amounts

12 as appropriate.

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

14 ‘‘(1) COMMISSIONER.—The term ‘Commissioner’

15 means the Commissioner of Social Security.

16 ‘‘(2) DISABLED BENEFICIARY.—The term ‘dis17 abled beneficiary’ has the meaning given that term in

18 section 1148(k)(2).’’.

19 SEC. 222. STATE GRANTS FOR WORK INCENTIVES ASSIST20 ANCE TO DISABLED BENEFICIARIES.

21 Part A of title XI of the Social Security Act (42 U.S.C.

22 1301 et seq.), as amended by section 221, is amended by

23 adding after section 1149 the following:
200

•S 331 RS

1 ‘‘STATE GRANTS FOR WORK INCENTIVES ASSISTANCE TO

2 DISABLED BENEFICIARIES

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

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

5 to the protection and advocacy system established pursuant

6 to part C of title I of the Developmental Disabilities Assist7 ance and Bill of Rights Act (42 U.S.C. 6041 et seq.) for

8 the purpose of providing services to disabled beneficiaries.

9 ‘‘(b) SERVICES PROVIDED.—Services provided to dis10 abled beneficiaries pursuant to a payment made under this

11 section may include—

12 ‘‘(1) information and advice about obtaining vo13 cational rehabilitation and employment services; and

14 ‘‘(2) advocacy or other services that a disabled

15 beneficiary may need to secure or regain gainful em16 ployment.

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

18 under this section, a protection and advocacy system shall

19 submit an application to the Commissioner, at such time,

20 in such form and manner, and accompanied by such infor21 mation and assurances as the Commissioner may require.

22 ‘‘(d) AMOUNT OF PAYMENTS.—

23 ‘‘(1) IN GENERAL.—Subject to the amount ap24 propriated for a fiscal year for making payments
201

•S 331 RS

1 under this section, a protection and advocacy system

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

3 ‘‘(A) in the case of a protection and advo4 cacy system located in a State (including the

5 District of Columbia and Puerto Rico) other

6 than Guam, American Samoa, the United States

7 Virgin Islands, and the Commonwealth of the

8 Northern Mariana Islands, the greater of—

9 ‘‘(i) $100,000; or

‘‘(ii) 1 10 ⁄3 of 1 percent of the amount

11 available for payments under this section;

12 and

13 ‘‘(B) in the case of a protection and advo14 cacy system located in Guam, American Samoa,

15 the United States Virgin Islands, and the Com16 monwealth of the Northern Mariana Islands,

17 $50,000.

18 ‘‘(2) INFLATION ADJUSTMENT.—For each fiscal

19 year in which the total amount appropriated to carry

20 out this section exceeds the total amount appropriated

21 to carry out this section in the preceding fiscal year,

22 the Commissioner shall increase each minimum pay23 ment under subparagraphs (A) and (B) of paragraph

24 (1) by a percentage equal to the percentage increase

25 in the total amount appropriated to carry out this
202

•S 331 RS

1 section between the preceding fiscal year and the fis2 cal year involved.

3 ‘‘(e) ANNUAL REPORT.—Each protection and advocacy

4 system that receives a payment under this section shall sub5 mit an annual report to the Commissioner and the Work

6 Incentives Advisory Panel established under section 201(f)

7 of the Work Incentives Improvement Act of 1999 on the serv8 ices provided to individuals by the system.

9 ‘‘(f) FUNDING.—

10 ‘‘(1) ALLOCATION OF PAYMENTS.—

11 ‘‘(A) IN GENERAL.—Subject to subpara12 graph (B), payments under this section shall be

13 made from amounts made available for the ad14 ministration of title II and amounts made avail15 able for the administration of title XVI, and

16 shall be allocated among those amounts as ap17 propriate.

18 ‘‘(B) LIMITATION.—Payments under this

19 section shall not exceed $7,000,000 for fiscal year

20 2000, and such sums as may be necessary for

21 any fiscal year thereafter.

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

23 payment to a protection and advocacy system under

24 this section for a fiscal year shall remain available

25 for payment to or on behalf of the protection and ad-
203

•S 331 RS

1 vocacy system until the end of the succeeding fiscal

2 year.

3 ‘‘(g) DEFINITIONS.—In this section:

4 ‘‘(1) COMMISSIONER.—The term ‘Commissioner’

5 means the Commissioner of Social Security.

6 ‘‘(2) DISABLED BENEFICIARY.—The term ‘dis7 abled beneficiary’ has the meaning given that term in

8 section 1148(k)(2).

9 ‘‘(3) PROTECTION AND ADVOCACY SYSTEM.—The

10 term ‘protection and advocacy system’ means a pro11 tection and advocacy system established pursuant to

12 part C of title I of the Developmental Disabilities As13 sistance and Bill of Rights Act (42 U.S.C. 6041 et

14 seq.).’’.

15 TITLE III—DEMONSTRATION

16 PROJECTS AND STUDIES

17 SEC. 301. PERMANENT EXTENSION OF DISABILITY INSUR18 ANCE PROGRAM DEMONSTRATION PROJECT

19 AUTHORITY.

20 (a) PERMANENT EXTENSION OF AUTHORITY.—Title II

21 of the Social Security Act (42 U.S.C. 401 et seq.) is amend22 ed by adding at the end the following:

23 ‘‘DEMONSTRATION PROJECT AUTHORITY

24 ‘‘SEC. 234. (a) AUTHORITY.—

25 ‘‘(1) IN GENERAL.—The Commissioner of Social

26 Security (in this section referred to as the ‘Commis-
204

•S 331 RS

1 sioner’) shall develop and carry out experiments and

2 demonstration projects designed to determine the rel3 ative advantages and disadvantages of—

4 ‘‘(A) various alternative methods of treating

5 the work activity of individuals entitled to dis6 ability insurance benefits under section 223 or to

7 monthly insurance benefits under section 202

8 based on such individual’s disability (as defined

9 in section 223(d)), including such methods as a

10 reduction in benefits based on earnings, designed

11 to encourage the return to work of such individ12 uals;

13 ‘‘(B) altering other limitations and condi14 tions applicable to such individuals (including

15 lengthening the trial work period (as defined in

16 section 222(c)), altering the 24-month waiting

17 period for hospital insurance benefits under sec18 tion 226, altering the manner in which the pro19 gram under this title is administered, earlier re20 ferral of such individuals for rehabilitation, and

21 greater use of employers and others to develop,

22 perform, and otherwise stimulate new forms of

23 rehabilitation); and

24 ‘‘(C) implementing sliding scale benefit off25 sets using variations in—
205

•S 331 RS

1 ‘‘(i) the amount of the offset as a pro2 portion of earned income;

3 ‘‘(ii) the duration of the offset period;

4 and

5 ‘‘(iii) the method of determining the

6 amount of income earned by such individ7 uals,

8 to the end that savings will accrue to the Trust

9 Funds, or to otherwise promote the objectives or facili10 tate the administration of this title.

11 ‘‘(2) AUTHORITY FOR EXPANSION OF SCOPE.—

12 The Commissioner may expand the scope of any such

13 experiment or demonstration project to include any

14 group of applicants for benefits under the program es15 tablished under this title with impairments that rea16 sonably may be presumed to be disabling for purposes

17 of such demonstration project, and may limit any

18 such demonstration project to any such group of ap19 plicants, subject to the terms of such demonstration

20 project which shall define the extent of any such pre21 sumption.

22 ‘‘(b) REQUIREMENTS.—The experiments and dem23 onstration projects developed under subsection (a) shall be

24 of sufficient scope and shall be carried out on a wide enough

25 scale to permit a thorough evaluation of the alternative
206

•S 331 RS

1 methods under consideration while giving assurance that

2 the results derived from the experiments and projects will

3 obtain generally in the operation of the disability insurance

4 program under this title without committing such program

5 to the adoption of any particular system either locally or

6 nationally.

7 ‘‘(c) AUTHORITY TO WAIVE COMPLIANCE WITH BENE8 FITS REQUIREMENTS.—In the case of any experiment or

9 demonstration project conducted under subsection (a), the

10 Commissioner may waive compliance with the benefit re11 quirements of this title, and the Secretary may (upon the

12 request of the Commissioner) waive compliance with the

13 benefits requirements of title XVIII, insofar as is necessary

14 for a thorough evaluation of the alternative methods under

15 consideration. No such experiment or project shall be actu16 ally placed in operation unless at least 90 days prior there17 to a written report, prepared for purposes of notification

18 and information only and containing a full and complete

19 description thereof, has been transmitted by the Commis20 sioner to the Committee on Ways and Means of the House

21 of Representatives and to the Committee on Finance of the

22 Senate. Periodic reports on the progress of such experiments

23 and demonstration projects shall be submitted by the Com24 missioner to such committees. When appropriate, such re25 ports shall include detailed recommendations for changes in
207

•S 331 RS

1 administration or law, or both, to carry out the objectives

2 stated in subsection (a).

3 ‘‘(d) REPORTS.—

4 ‘‘(1) INTERIM REPORTS.—On or before June 9 of

5 each year, the Commissioner shall submit to the Com6 mittee on Ways and Means of the House of Represent7 atives and to the Committee on Finance of the Senate

8 an interim report on the progress of the experiments

9 and demonstration projects carried out under this

10 subsection together with any related data and mate11 rials that the Commissioner may consider appro12 priate.

13 ‘‘(2) FINAL REPORTS.—Not later than 90 days

14 after the termination of any experiment or dem15 onstration project carried out under this section, the

16 Commissioner shall submit to the Committee on Ways

17 and Means of the House of Representatives and to the

18 Committee on Finance of the Senate a final report

19 with respect to that experiment and demonstration

20 project.’’.

21 (b) CONFORMING AMENDMENTS; TRANSFER OF PRIOR

22 AUTHORITY.—

23 (1) CONFORMING AMENDMENTS.—

24 (A) REPEAL OF PRIOR AUTHORITY.—Para25 graphs (1) through (4) of subsection (a) and sub-
208

•S 331 RS

1 section (c) of section 505 of the Social Security

2 Disability Amendments of 1980 (42 U.S.C. 1310

3 note) are repealed.

4 (B) CONFORMING AMENDMENT REGARDING

5 FUNDING.—Section 201(k) of the Social Security

6 Act (42 U.S.C. 401(k)) is amended by striking

7 ‘‘section 505(a) of the Social Security Disability

8 Amendments of 1980’’ and inserting ‘‘section

9 234’’.

10 (2) TRANSFER OF PRIOR AUTHORITY.—With re11 spect to any experiment or demonstration project

12 being conducted under section 505(a) of the Social Se13 curity Disability Amendments of 1980 (42 U.S.C.

14 1310 note) as of the date of enactment of this Act, the

15 authority to conduct such experiment or demonstra16 tion project (including the terms and conditions ap17 plicable to the experiment or demonstration project)

18 shall be treated as if that authority (and such terms

19 and conditions) had been established under section

20 234 of the Social Security Act, as added by subsection

21 (a).
209

•S 331 RS

1 SEC. 302. DEMONSTRATION PROJECTS PROVIDING FOR RE2 DUCTIONS IN DISABILITY INSURANCE BENE3 FITS BASED ON EARNINGS.

4 (a) AUTHORITY.—The Commissioner of Social Secu5 rity shall conduct demonstration projects for the purpose

6 of evaluating, through the collection of data, a program for

7 title II disability beneficiaries (as defined in section

8 1148(k)(3) of the Social Security Act) under which each

9 $1 of benefits payable under section 223, or under section

10 202 based on the beneficiary’s disability, is reduced for each

11 $2 of such beneficiary’s earnings that is above a level to

12 be determined by the Commissioner. Such projects shall be

13 conducted at a number of localities which the Commissioner

14 shall determine is sufficient to adequately evaluate the ap15 propriateness of national implementation of such a pro16 gram. Such projects shall identify reductions in Federal ex17 penditures that may result from the permanent implemen18 tation of such a program.

19 (b) SCOPE AND SCALE AND MATTERS TO BE DETER20 MINED.—

21 (1) IN GENERAL.—The demonstration projects

22 developed under subsection (a) shall be of sufficient

23 duration, shall be of sufficient scope, and shall be car24 ried out on a wide enough scale to permit a thorough

25 evaluation of the project to determine—
210

•S 331 RS

1 (A) the effects, if any, of induced entry into

2 the project and reduced exit from the project;

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

4 being tested is affected by whether it is in oper5 ation in a locality within an area under the ad6 ministration of the Ticket to Work and Self-Suf7 ficiency Program established under section 1148

8 of the Social Security Act; and

9 (C) the savings that accrue to the Federal

10 Old-Age and Survivors Insurance Trust Fund,

11 the Federal Disability Insurance Trust Fund,

12 and other Federal programs under the project

13 being tested.

14 The Commissioner shall take into account advice pro15 vided by the Work Incentives Advisory Panel pursu16 ant to section 201(f)(2)(B)(ii).

17 (2) ADDITIONAL MATTERS.—The Commissioner

18 shall also determine with respect to each project—

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

20 the project and the annual cost (including net

21 cost) that would have been incurred in the ab22 sence of the project;

23 (B) the determinants of return to work, in24 cluding the characteristics of the beneficiaries

25 who participate in the project; and
211

•S 331 RS

1 (C) the employment outcomes, including

2 wages, occupations, benefits, and hours worked,

3 of beneficiaries who return to work as a result of

4 participation in the project.

5 The Commissioner may include within the matters

6 evaluated under the project the merits of trial work

7 periods and periods of extended eligibility.

8 (c) WAIVERS.—The Commissioner may waive compli9 ance with the benefit provisions of title II of the Social Se10 curity Act, and the Secretary of Health and Human Serv11 ices may waive compliance with the benefit requirements

12 of title XVIII of that Act, insofar as is necessary for a thor13 ough evaluation of the alternative methods under consider14 ation. No such project shall be actually placed in operation

15 unless at least 90 days prior thereto a written report, pre16 pared for purposes of notification and information only

17 and containing a full and complete description thereof, has

18 been transmitted by the Commissioner to the Committee on

19 Ways and Means of the House of Representatives and to

20 the Committee on Finance of the Senate. Periodic reports

21 on the progress of such projects shall be submitted by the

22 Commissioner to such committees. When appropriate, such

23 reports shall include detailed recommendations for changes

24 in administration or law, or both, to carry out the objectives

25 stated in subsection (a).
212

•S 331 RS

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

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

3 the Commissioner of Social Security shall submit to Con4 gress an interim report on the progress of the demonstration

5 projects carried out under this subsection together with any

6 related data and materials that the Commissioner of Social

7 Security may consider appropriate.

8 (e) FINAL REPORT.—The Commissioner of Social Se9 curity shall submit to Congress a final report with respect

10 to all demonstration projects carried out under this section

11 not later than 1 year after their completion.

12 (f) EXPENDITURES.—Expenditures made for dem13 onstration projects under this section shall be made from

14 the Federal Disability Insurance Trust Fund and the Fed15 eral Old-Age and Survivors Insurance Trust Fund, as de16 termined appropriate by the Commissioner of Social Secu17 rity, and from the Federal Hospital Insurance Trust Fund

18 and the Federal Supplementary Medical Insurance Trust

19 Fund, as determined appropriate by the Secretary of

20 Health and Human Services, to the extent provided in ad21 vance in appropriation Acts.

22 SEC. 303. STUDIES AND REPORTS.

23 (a) STUDY BY GENERAL ACCOUNTING OFFICE OF EX24 ISTING DISABILITY-RELATED EMPLOYMENT INCENTIVES.—
213

•S 331 RS

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

2 date of enactment of this Act, the Comptroller General

3 of the United States shall undertake a study to assess

4 existing tax credits and other disability-related em5 ployment incentives under the Americans with Dis6 abilities Act of 1990 and other Federal laws. In such

7 study, the Comptroller General shall specifically ad8 dress the extent to which such credits and other incen9 tives would encourage employers to hire and retain

10 individuals with disabilities.

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

12 date of enactment of this Act, the Comptroller General

13 shall transmit to the Committee on Ways and Means

14 of the House of Representatives and the Committee on

15 Finance of the Senate a written report presenting the

16 results of the Comptroller General’s study conducted

17 pursuant to this subsection, together with such rec18 ommendations for legislative or administrative

19 changes as the Comptroller General determines are

20 appropriate.

21 (b) STUDY BY GENERAL ACCOUNTING OFFICE OF EX22 ISTING COORDINATION OF THE DI AND SSI PROGRAMS AS

23 THEY RELATE TO INDIVIDUALS ENTERING OR LEAVING

24 CONCURRENT ENTITLEMENT.—
214

•S 331 RS

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

2 date of enactment of this Act, the Comptroller General

3 of the United States shall undertake a study to evalu4 ate the coordination under current law of the dis5 ability insurance program under title II of the Social

6 Security Act and the supplemental security income

7 program under title XVI of that Act, as such pro8 grams relate to individuals entering or leaving con9 current entitlement under such programs. In such

10 study, the Comptroller General shall specifically ad11 dress the effectiveness of work incentives under such

12 programs with respect to such individuals and the ef13 fectiveness of coverage of such individuals under titles

14 XVIII and XIX of the Social Security Act.

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

16 date of enactment of this Act, the Comptroller General

17 shall transmit to the Committee on Ways and Means

18 of the House of Representatives and the Committee on

19 Finance of the Senate a written report presenting the

20 results of the Comptroller General’s study conducted

21 pursuant to this subsection, together with such rec22 ommendations for legislative or administrative

23 changes as the Comptroller General determines are

24 appropriate.
215

•S 331 RS

1 (c) STUDY BY GENERAL ACCOUNTING OFFICE OF THE

2 IMPACT OF THE SUBSTANTIAL GAINFUL ACTIVITY LIMIT ON

3 RETURN TO WORK.—

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

5 date of enactment of this Act, the Comptroller General

6 of the United States shall undertake a study of the

7 substantial gainful activity level applicable as of that

8 date to recipients of benefits under section 223 of the

9 Social Security Act (42 U.S.C. 423) and under sec10 tion 202 of that Act (42 U.S.C. 402) on the basis of

11 a recipient having a disability, and the effect of such

12 level as a disincentive for those recipients to return

13 to work. In the study, the Comptroller General also

14 shall address the merits of increasing the substantial

15 gainful activity level applicable to such recipients of

16 benefits and the rationale for not yearly indexing that

17 level to inflation.

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

19 date of enactment of this Act, the Comptroller General

20 shall transmit to the Committee on Ways and Means

21 of the House of Representatives and the Committee on

22 Finance of the Senate a written report presenting the

23 results of the Comptroller General’s study conducted

24 pursuant to this subsection, together with such rec25 ommendations for legislative or administrative
216

•S 331 RS

1 changes as the Comptroller General determines are

2 appropriate.

3 (d) REPORT ON DISREGARDS UNDER THE DI AND SSI

4 PROGRAMS.—Not later than 90 days after the date of enact5 ment of this Act, the Commissioner of Social Security shall

6 submit to the Committee on Ways and Means of the House

7 of Representatives and the Committee on Finance of the

8 Senate a report that—

9 (1) identifies all income, assets, and resource dis10 regards (imposed under statutory or regulatory au11 thority) that are applicable to individuals receiving

12 benefits under title II or XVI of the Social Security

13 Act (42 U.S.C. 401 et seq., 1381 et seq.);

14 (2) with respect to each such disregard—

15 (A) specifies the most recent statutory or

16 regulatory modification of the disregard; and

17 (B) recommends whether further statutory

18 or regulatory modification of the disregard

19 would be appropriate; and

20 (3) with respect to the disregard described in sec21 tion 1612(b)(7) of the Social Security Act (42 U.S.C.

22 1382a(b)(7)) (relating to grants, scholarships, or fel23 lowships received for use in paying the cost of tuition

24 and fees at any educational (including technical or

25 vocational education) institution)—
217

•S 331 RS

1 (A) identifies the number of individuals re2 ceiving benefits under title XVI of such Act (42

3 U.S.C. 1381 et seq.) who have attained age 22

4 and have not had any portion of any grant,

5 scholarship, or fellowship received for use in pay6 ing the cost of tuition and fees at any edu7 cational (including technical or vocational edu8 cation) institution excluded from their income in

9 accordance with that section;

10 (B) recommends whether the age at which

11 such grants, scholarships, or fellowships are ex12 cluded from income for purposes of determining

13 eligibility under title XVI of the Social Security

14 Act should be increased to age 25; and

15 (C) recommends whether such disregard

16 should be expanded to include any such grant,

17 scholarship, or fellowship received for use in pay18 ing the cost of room and board at any such insti19 tution.

20 TITLE IV—MISCELLANEOUS AND

21 TECHNICAL AMENDMENTS

22 SEC. 401. TECHNICAL AMENDMENTS RELATING TO DRUG

23 ADDICTS AND ALCOHOLICS.

24 (a) CLARIFICATION RELATING TO THE EFFECTIVE

25 DATE OF THE DENIAL OF SOCIAL SECURITY DISABILITY
218

•S 331 RS

1 BENEFITS TO DRUG ADDICTS AND ALCOHOLICS.—Section

2 105(a)(5) of the Contract with America Advancement Act

3 of 1996 (Public Law 104–121; 110 Stat. 853) is amended—

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

5 Commissioner of Social Security’’ and ‘‘by the Com6 missioner’’; and

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

8 ‘‘(D) For purposes of this paragraph, an in9 dividual’s claim, with respect to benefits under

10 title II of the Social Security Act based on dis11 ability, which has been denied in whole before

12 the date of enactment of this Act, may not be

13 considered to be finally adjudicated before such

14 date if, on or after such date—

15 ‘‘(i) there is pending a request for ei16 ther administrative or judicial review with

17 respect to such claim, or

18 ‘‘(ii) there is pending, with respect to

19 such claim, a readjudication by the Com20 missioner of Social Security pursuant to re21 lief in a class action or implementation by

22 the Commissioner of a court remand order.

23 ‘‘(E) Notwithstanding the provisions of this

24 paragraph, with respect to any individual for

25 whom the Commissioner of Social Security does
219

•S 331 RS

1 not perform the entitlement redetermination be2 fore the date prescribed in subparagraph (C), the

3 Commissioner shall perform such entitlement re4 determination in lieu of a continuing disability

5 review whenever the Commissioner determines

6 that the individual’s entitlement is subject to re7 determination based on the preceding provisions

8 of this paragraph, and the provisions of section

9 223(f) of the Social Security Act shall not apply

10 to such redetermination.’’.

11 (b) CORRECTION TO EFFECTIVE DATE OF PROVISIONS

12 CONCERNING REPRESENTATIVE PAYEES AND TREATMENT

13 REFERRALS OF SOCIAL SECURITY BENEFICIARIES WHO

14 ARE DRUG ADDICTS AND ALCOHOLICS.—Section

15 105(a)(5)(B) of the Contract with America Advancement

16 Act of 1996 (42 U.S.C. 405 note) is amended to read as

17 follows:

18 ‘‘(B) The amendments made by paragraphs

19 (2) and (3) shall take effect on July 1, 1996,

20 with respect to any individual—

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

22 adjudicated on or after the date of enact23 ment of this Act; or
220

•S 331 RS

1 ‘‘(ii) whose entitlement to benefits is

2 based on an entitlement redetermination

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

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

5 this section shall take effect as if included in the enactment

6 of section 105 of the Contract with America Advancement

7 Act of 1996 (Public Law 104–121; 110 Stat. 852 et seq.).

8 SEC. 402. TREATMENT OF PRISONERS.

9 (a) IMPLEMENTATION OF PROHIBITION AGAINST PAY10 MENT OF TITLE II BENEFITS TO PRISONERS.—

11 (1) IN GENERAL.—Section 202(x)(3) of the So12 cial Security Act (42 U.S.C. 402(x)(3)) is amended—

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

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

15 ‘‘(B)(i) The Commissioner shall enter into an agree16 ment under this subparagraph with any interested State

17 or local institution comprising a jail, prison, penal institu18 tion, or correctional facility, or comprising any other insti19 tution a purpose of which is to confine individuals as de20 scribed in paragraph (1)(A)(ii). Under such agreement—

21 ‘‘(I) the institution shall provide to the Commis22 sioner, on a monthly basis and in a manner specified

23 by the Commissioner, the names, Social Security ac24 count numbers, dates of birth, confinement commence25 ment dates, and, to the extent available to the institu-
221

•S 331 RS

1 tion, such other identifying information concerning

2 the individuals confined in the institution as the

3 Commissioner may require for the purpose of car4 rying out paragraph (1); and

5 ‘‘(II) the Commissioner shall pay to the institu6 tion, with respect to information described in sub7 clause (I) concerning each individual who is confined

8 therein as described in paragraph (1)(A), who receives

9 a benefit under this title for the month preceding the

10 first month of such confinement, and whose benefit

11 under this title is determined by the Commissioner to

12 be not payable by reason of confinement based on the

13 information provided by the institution, $400 (subject

14 to reduction under clause (ii)) if the institution fur15 nishes the information to the Commissioner within 30

16 days after the date such individual’s confinement in

17 such institution begins, or $200 (subject to reduction

18 under clause (ii)) if the institution furnishes the in19 formation after 30 days after such date but within 90

20 days after such date.

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

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

23 required to make a payment to the institution with respect

24 to the same individual under an agreement entered into

25 under section 1611(e)(1)(I).
222

•S 331 RS

1 ‘‘(iii) There is authorized to be transferred from the

2 Federal Old-Age and Survivors Insurance Trust Fund and

3 the Federal Disability Insurance Trust Fund, as appro4 priate, such sums as may be necessary to enable the Com5 missioner to make payments to institutions required by

6 clause (i)(II).

7 ‘‘(iv) The Commissioner is authorized to provide, on

8 a reimbursable basis, information obtained pursuant to

9 agreements entered into under clause (i) to any agency ad10 ministering a Federal or federally assisted cash, food, or

11 medical assistance program for eligibility purposes.’’.

12 (2) CONFORMING AMENDMENT TO THE PRIVACY

13 ACT.—Section 552a(a)(8)(B) of title 5, United States

14 Code, is amended—

15 (A) in clause (vi), by striking ‘‘or’’ at the

16 end;

17 (B) in clause (vii), by adding ‘‘or’’ at the

18 end; and

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

20 ‘‘(viii) matches performed pursuant to

21 section 202(x)(3)(B) or 1611(e)(1)(I) of the

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

23 402(x)(3)(B), 1382(e)(1)(I));’’.

24 (3) EFFECTIVE DATE.—The amendments made

25 by this subsection shall apply to individuals whose
223

•S 331 RS

1 period of confinement in an institution commences on

2 or after the first day of the fourth month beginning

3 after the month in which this Act is enacted.

4 (b) ELIMINATION OF TITLE II REQUIREMENT THAT

5 CONFINEMENT STEM FROM CRIME PUNISHABLE BY IM6 PRISONMENT FOR MORE THAN 1 YEAR.—

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

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

9 amended—

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

11 striking ‘‘during’’ and inserting ‘‘throughout’’;

12 (B) in clause (i), by striking ‘‘an offense

13 punishable by imprisonment for more than 1

14 year (regardless of the actual sentence imposed)’’

15 and inserting ‘‘a criminal offense’’; and

16 (C) in clause (ii)(I), by striking ‘‘an offense

17 punishable by imprisonment for more than 1

18 year’’ and inserting ‘‘a criminal offense’’.

19 (2) EFFECTIVE DATE.—The amendments made

20 by this subsection shall apply to individuals whose

21 period of confinement in an institution commences on

22 or after the first day of the fourth month beginning

23 after the month in which this Act is enacted.

24 (c) CONFORMING TITLE XVI AMENDMENTS.—
224

•S 331 RS

1 (1) FIFTY PERCENT REDUCTION IN TITLE XVI

2 PAYMENT IN CASE INVOLVING COMPARABLE TITLE II

3 PAYMENT.—Section 1611(e)(1)(I) of the Social Secu4 rity Act (42 U.S.C. 1382(e)(1)(I)) is amended—

5 (A) in clause (i)(II), by inserting ‘‘(subject

6 to reduction under clause (ii))’’ after ‘‘$400’’ and

7 after ‘‘$200’’;

8 (B) by redesignating clauses (ii) and (iii)

9 as clauses (iii) and (iv), respectively; and

10 (C) by inserting after clause (i) the fol11 lowing:

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

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

14 required to make a payment to the institution with respect

15 to the same individual under an agreement entered into

16 under section 202(x)(3)(B).’’.

17 (2) EXPANSION OF CATEGORIES OF INSTITU18 TIONS ELIGIBLE TO ENTER INTO AGREEMENTS WITH

19 THE COMMISSIONER.—Section 1611(e)(1)(I)(i) of the

20 Social Security Act (42 U.S.C. 1382(e)(1)(I)(i)) is

21 amended in the matter preceding subclause (I) by

22 striking ‘‘institution’’ and all that follows through

23 ‘‘section 202(x)(1)(A),’’ and inserting ‘‘institution

24 comprising a jail, prison, penal institution, or correc25 tional facility, or with any other interested State or
225

•S 331 RS

1 local institution a purpose of which is to confine in2 dividuals as described in section 202(x)(1)(A)(ii),’’.

3 (3) ELIMINATION OF OVERLY BROAD EXEMP4 TION.—Section 1611(e)(1)(I)(iii) of such Act (42

5 U.S.C. 1382(e)(1)(I)(iii)) (as redesignated by para6 graph (1)(B), is amended by striking ‘‘(I) The provi7 sions’’ and all that follows through ‘‘(II)’’.

8 (4) EFFECTIVE DATE.—The amendments made

9 by this subsection shall take effect as if included in

10 the enactment of section 203(a) of the Personal Re11 sponsibility and Work Opportunity Reconciliation

12 Act of 1996 (Public Law 104–193; 110 Stat. 2186).

13 The reference to section 202(x)(1)(A)(ii) of the Social

14 Security Act in section 1611(e)(1)(I)(i) of the Social

15 Security Act as amended by paragraph (2) shall be

16 deemed a reference to such section 202(x)(1)(A)(ii) as

17 amended by subsection (b)(1)(C).

18 (d) CONTINUED DENIAL OF BENEFITS TO SEX OF19 FENDERS REMAINING CONFINED TO PUBLIC INSTITUTIONS

20 UPON COMPLETION OF PRISON TERM.—

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

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

23 amended—

24 (A) in clause (i), by striking ‘‘or’’ at the

25 end;
226

•S 331 RS

1 (B) in clause (ii)(IV), by striking the period

2 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 conviction

6 of a criminal offense an element of which is sexual ac7 tivity, is confined by court order in an institution at

8 public expense pursuant to a finding that the indi9 vidual 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 U.S.C.

13 402(x)(1)(B)(ii)) is amended by striking ‘‘clause (ii)’’

14 and inserting ‘‘clauses (ii) and (iii)’’.

15 (3) EFFECTIVE DATE.—The amendments made

16 by this subsection shall apply with respect to benefits

17 for months ending after the date of enactment of this

18 Act.

19 SEC. 403. REVOCATION BY MEMBERS OF THE CLERGY OF

20 EXEMPTION FROM SOCIAL SECURITY COV21 ERAGE.

22 (a) IN GENERAL.—Notwithstanding section 1402(e)(4)

23 of the Internal Revenue Code of 1986, any exemption which

24 has been received under section 1402(e)(1) of such Code by

25 a duly ordained, commissioned, or licensed minister of a
227

•S 331 RS

1 church, a member of a religious order, or a Christian

2 Science practitioner, and which is effective for the taxable

3 year in which this Act is enacted, may be revoked by filing

4 an application therefore (in such form and manner, and

5 with such official, as may be prescribed by the Commis6 sioner of the Internal Revenue Service), if such application

7 is filed no later than the due date of the Federal income

8 tax return (including any extension thereof) for the appli9 cant’s second taxable year beginning after December 31,

10 1999. Any such revocation shall be effective (for purposes

11 of chapter 2 of the Internal Revenue Code of 1986 and title

12 II of the Social Security Act), as specified in the applica13 tion, either with respect to the applicant’s first taxable year

14 beginning after December 31, 1999, or with respect to the

15 applicant’s second taxable year beginning after such date,

16 and for all succeeding taxable years; and the applicant for

17 any such revocation may not thereafter again file applica18 tion for an exemption under such section 1402(e)(1). If the

19 application is filed after the due date of the applicant’s Fed20 eral income tax return for a taxable year and is effective

21 with respect to that taxable year, it shall include or be ac22 companied by payment in full of an amount equal to the

23 total of the taxes that would have been imposed by section

24 1401 of the Internal Revenue Code of 1986 with respect to

25 all of the applicant’s income derived in that taxable year
228

•S 331 RS

1 which would have constituted net earnings from self-em2 ployment for purposes of chapter 2 of such Code (notwith3 standing paragraph (4) or (5) of section 1402(c) of such

4 Code) except for the exemption under section 1402(e)(1) of

5 such Code.

6 (b) EFFECTIVE DATE.—Subsection (a) shall apply

7 with respect to service performed (to the extent specified in

8 such subsection) in taxable years beginning after December

9 31, 1999, and with respect to monthly insurance benefits

10 payable under title II of the Social Security Act on the basis

11 of the wages and self-employment income of any individual

12 for months in or after the calendar year in which such indi13 vidual’s application for revocation (as described in such

14 subsection) is effective (and lump-sum death payments pay15 able under such title on the basis of such wages and self16 employment income in the case of deaths occurring in or

17 after such calendar year).

18 SEC. 404. ADDITIONAL TECHNICAL AMENDMENT RELATING

19 TO COOPERATIVE RESEARCH OR DEM20 ONSTRATION PROJECTS UNDER TITLES II

21 AND XVI.

22 (a) IN GENERAL.—Section 1110(a)(3) of the Social Se23 curity Act (42 U.S.C. 1310(a)(3)) is amended by striking

24 ‘‘title XVI’’ and inserting ‘‘title II or XVI’’.
229

•S 331 RS

1 (b) EFFECTIVE DATE.—The amendment made by sub2 section (a) shall take effect as if included in the enactment

3 of the Social Security Independence and Program Improve4 ments Act of 1994 (Public Law 103–296; 108 Stat. 1464).

5 SEC. 405. AUTHORIZATION FOR STATE TO PERMIT ANNUAL

6 WAGE REPORTS.

7 (a) IN GENERAL.—Section 1137(a)(3) of the Social Se8 curity Act (42 U.S.C. 1320b–7(a)(3)) is amended by insert9 ing before the semicolon the following: ‘‘, and except that

10 in the case of wage reports with respect to domestic service

11 employment, a State may permit employers (as so defined)

12 that make returns with respect to such employment on a

13 calendar year basis pursuant to section 3510 of the Internal

14 Revenue Code of 1986 to make such reports on an annual

15 basis’’.

16 (b) TECHNICAL AMENDMENTS.—Section 1137(a)(3) of

17 the Social Security Act (42 U.S.C. 1320b–7(a)(3)) is

18 amended—

19 (1) by striking ‘‘(as defined in section

20 453A(a)(2)(B)(iii))’’; and

21 (2) by inserting ‘‘(as defined in section

22 453A(a)(2)(B))’’ after ‘‘employers’’ .

23 (c) EFFECTIVE DATE.—The amendments made by this

24 section shall apply to wage reports required to be submitted

25 on and after the date of enactment of this Act.
230

•S 331 RS

1 TITLE V—REVENUE

2 SEC. 501. MODIFICATION TO FOREIGN TAX CREDIT

3 CARRYBACK AND CARRYOVER PERIODS.

4 (a) IN GENERAL.—Section 904(c) of the Internal Rev5 enue Code of 1986 (relating to limitation on credit) is

6 amended—

7 (1) by striking ‘‘in the second preceding taxable

8 year,’’, and

9 (2) by striking ‘‘or fifth’’ and inserting ‘‘fifth,

10 sixth, or seventh’’.

11 (b) EFFECTIVE DATE.—The amendments made by sub12 section (a) shall apply to credits arising in taxable years

13 beginning after December 31, 2001.

14 SEC. 502. LIMITATION ON USE OF NON-ACCRUAL EXPERI15 ENCE METHOD OF ACCOUNTING.

16 (a) IN GENERAL.—Section 448(d)(5) of the Internal

17 Revenue Code of 1986 (relating to special rule for services)

18 is amended—

19 (1) by inserting ‘‘in fields described in para20 graph (2)(A)’’ after ‘‘services by such person’’, and

21 (2) by inserting ‘‘CERTAIN PERSONAL’’ before

22 ‘‘SERVICES’’.

23 (b) EFFECTIVE DATE.—
231

•S 331 RS

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

2 this section shall apply to taxable years ending after

3 the date of the enactment of this Act.

4 (2) CHANGE IN METHOD OF ACCOUNTING.—In

5 the case of any taxpayer required by the amendments

6 made by this section to change its method of account7 ing for its first taxable year ending after the date of

8 the enactment of this Act—

9 (A) such change shall be treated as initiated

10 by the taxpayer,

11 (B) such change shall be treated as made

12 with the consent of the Secretary of the Treasury,

13 and

14 (C) the net amount of the adjustments re15 quired to be taken into account by the taxpayer

16 under section 481 of the Internal Revenue Code

17 of 1986 shall be taken into account over a period

18 (not greater than 4 taxable years) beginning

19 with such first taxable year.

20 SEC. 503. EXTENSION OF INTERNAL REVENUE SERVICE

21 USER FEES.

22 (a) IN GENERAL.—Chapter 77 of the Internal Revenue

23 Code of 1986 (relating to miscellaneous provisions) is

24 amended by adding at the end the following new section:
232

•S 331 RS

1 ‘‘SEC. 7527. INTERNAL REVENUE SERVICE USER FEES.

2 ‘‘(a) GENERAL RULE.—The Secretary shall establish

3 a program requiring the payment of user fees for—

4 ‘‘(1) requests to the Internal Revenue Service for

5 ruling letters, opinion letters, and determination let6 ters, and

7 ‘‘(2) other similar requests.

8 ‘‘(b) PROGRAM CRITERIA.—

9 ‘‘(1) IN GENERAL.—The fees charged under the

10 program required by subsection (a)—

11 ‘‘(A) shall vary according to categories (or

12 subcategories) established by the Secretary,

13 ‘‘(B) shall be determined after taking into

14 account the average time for (and difficulty of)

15 complying with requests in each category (and

16 subcategory), and

17 ‘‘(C) shall be payable in advance.

18 ‘‘(2) EXEMPTIONS, ETC.—The Secretary shall

19 provide for such exemptions (and reduced fees) under

20 such program as the Secretary determines to be ap21 propriate.

22 ‘‘(3) AVERAGE FEE REQUIREMENT.—The average

23 fee charged under the program required by subsection

24 (a) shall not be less than the amount determined

25 under the following table:
233

•S 331 RS

‘‘Category Average Fee

Employee plan ruling and opinion .............................................. $250

Exempt organization ruling ......................................................... $350

Employee plan determination ...................................................... $300

Exempt organization determination ............................................ $275

Chief counsel ruling ....................................................................... $200.

1 ‘‘(c) TERMINATION.—No fee shall be imposed under

2 this section with respect to requests made after September

3 30, 2006.’’

4 (b) CONFORMING AMENDMENTS.—

5 (1) The table of sections for chapter 77 of the In6 ternal Revenue Code of 1986 is amended by adding

7 at the end the following new item:

‘‘Sec. 7527. Internal Revenue Service user fees.’’

8 (2) Section 10511 of the Revenue Act of 1987 is

9 repealed.

10 (c) EFFECTIVE DATE.—The amendments made by this

11 section shall apply to requests made after the date of the

12 enactment of this Act.