I

106TH CONGRESS

1ST SESSION H. R. 1180

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 HOUSE OF REPRESENTATIVES

MARCH 18, 1999

Mr. LAZIO (for himself, Mr. WAXMAN, Mr. BLILEY, Mr. DINGELL, Mrs.

JOHNSON of Connecticut, Mr. MATSUI, Mr. BILIRAKIS, Mr. BROWN of

Ohio, Mr. RAMSTAD, Mr. CARDIN, Mr. GREENWOOD, Ms. BALDWIN, Mr.

CAMP, Mr. STARK, Mr. PICKERING, Mr. PALLONE, Mr. FOLEY, Mr.

LEVIN, Mr. BILBRAY, Mr. TANNER, Mrs. MORELLA, Mr. DOGGETT, Mr.

HORN, Mr. MURTHA, Mr. UPTON, Mr. STRICKLAND, Mrs. KELLY, Mr.

HOEFFEL, Mr. BOEHLERT, Mr. BOUCHER, Mr. KOLBE, Ms. MCCARTHY

of Missouri, Mr. FRELINGHUYSEN, Mr. MARKEY, Mr. BARRETT of Wisconsin, Mr. GORDON, Mr. RUSH, Mr. WYNN, Mr. MEEHAN, Mr.

DELAHUNT, Mr. BARCIA, Mr. GREEN of Texas, Mr. KLINK, and Mr.

JEFFERSON) introduced the following bill; which was referred to the

Committee on Ways and Means, and in addition to the Committee on

Commerce, for a period to be subsequently determined by the Speaker,

in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

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
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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 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.
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Sec. 303. 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.

12 (3) Americans with significant disabilities often

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

16 the workforce. Personal assistance services (such as

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

19 coaches, and related assistance) remove many of the

20 barriers between significant disability and work.
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1 Coverage for such services, as well as for prescrip2 tion drugs, durable medical equipment, and basic

3 health care are powerful and proven tools for indi4 viduals with significant disabilities to obtain and re5 tain employment.

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

7 losing health care and related services is one of the

8 greatest barriers keeping the individuals from maxi9 mizing their employment, earning potential, and

10 independence.

11 (5) Individuals with disabilities who are bene12 ficiaries under title II or XVI of the Social Security

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

14 medicare or medicaid coverage that is linked to their

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

16 work disincentive than the loss of cash benefits asso17 ciated with working.

(6) Currently, less than 1 18 ⁄2 of 1 percent of so19 cial security disability insurance and supplemental

20 security income beneficiaries cease to receive benefits

21 as a result of employment.

22 (7) Beneficiaries have cited the lack of adequate

23 employment training and placement services as an

24 additional barrier to employment.
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(8) If an additional 1 1 ⁄2 of 1 percent of the cur2 rent social security disability insurance (DI) and

3 supplemental security income (SSI) recipients were

4 to cease receiving benefits as a result of employ5 ment, the savings to the Social Security Trust

6 Funds in cash assistance would total

7 $3,500,000,000 over the worklife of the individuals.

8 (b) PURPOSES.—The purposes of this Act are as fol9 lows:

10 (1) To provide health care and employment

11 preparation and placement services to individuals

12 with disabilities that will enable those individuals to

13 reduce their dependency on cash benefit programs.

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

15 allowing individuals with disabilities to purchase

16 medicaid coverage that is necessary to enable such

17 individuals to maintain employment.

18 (3) To provide individuals with disabilities the

19 option of maintaining medicare coverage while work20 ing.

21 (4) To establish a return to work ticket pro22 gram that will allow individuals with disabilities to

23 seek the services necessary to obtain and retain em24 ployment and reduce their dependency on cash ben25 efit programs.
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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.—Sec11 tion 1902(a)(10)(A)(ii) of the Social Security Act

12 (42 U.S.C. 1396a(a)(10)(A)(ii)) is amended—

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

14 at 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 con21 sidered to be receiving supplemental

22 security income and whose assets, re23 sources, and earned or unearned in24 come (or both) do not exceed such
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1 limitations (if any) as the State may

2 establish;’’.

3 (2) STATE OPTION TO PROVIDE OPPORTUNITY

4 FOR EMPLOYED INDIVIDUALS WITH A MEDICALLY

5 IMPROVED DISABILITY TO BUY INTO MEDICAID.—

6 (A) ELIGIBILITY.—Section

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

8 (42 U.S.C. 1396a(a)(10)(A)(ii)), as amended by

9 paragraph (1), is amended—

10 (i) in subclause (XIV), by striking

11 ‘‘or’’ 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 indi17 viduals with a medically improved dis18 ability described in section 1905(v)(1)

19 and whose assets, resources, and

20 earned or unearned income (or both)

21 do not exceed such limitations (if any)

22 as the State may establish, but only if

23 the State provides medical assistance

24 to individuals described in subclause

25 (XV);’’.
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1 (B) DEFINITION OF EMPLOYED INDIVID2 UALS WITH A MEDICALLY IMPROVED DIS3 ABILITY.—Section 1905 of the Social Security

4 Act (42 U.S.C. 1396d) is amended by adding at

5 the end the following:

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

9 age;

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

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

12 under section 1902(a)(10)(A)(ii)(XV) because the

13 individual, by reason of medical improvement, is de14 termined at the time of a regularly scheduled con15 tinuing disability review to no longer be eligible for

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

17 ‘‘(D) continues to have a severe medically deter18 minable impairment, as determined under regula19 tions of the Secretary.

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

21 considered to be ‘employed’ if the individual—

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

23 wage requirement under section 6 of the Fair Labor

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

25 40 hours per month; or
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1 ‘‘(B) is engaged in a work effort that meets

2 substantial and reasonable threshold criteria for

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

4 by the 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 im16 proved disability (as defined in subsection (v)),’’.

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

19 1916 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 sub22 section (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
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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

7 premiums in the case of such an individual who has

8 income that exceeds 250 percent of the income offi9 cial poverty line (referred to in subsection (c)(1)) ap10 plicable to a family of the size involved.’’.

11 (4) PROHIBITION AGAINST SUPPLANTATION OF

12 STATE FUNDS AND STATE FAILURE TO MAINTAIN

13 EFFORT.—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

20 medical assistance provided to an individual de21 scribed in subclause (XV) or (XVI) of section

22 1902(a)(10)(A)(ii) for a fiscal year unless the State

23 demonstrates to the satisfaction of the Secretary

24 that the level of State funds expended for such fiscal

25 year for programs to enable working individuals with
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1 disabilities to work (other than for such medical as2 sistance) is not less than the level expended for such

3 programs during the most recent State fiscal year

4 ending before the date of enactment of this para5 graph.’’.

6 (b) CONFORMING AMENDMENTS.—

7 (1) Section 1903(f)(4) of the Social Security

8 Act (42 U.S.C. 1396b(f)(4)) is amended in the mat9 ter preceding subparagraph (A) by inserting

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

11 after ‘‘1902(a)(10)(A)(ii)(X),’’.

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

13 by paragraph (1), is amended by inserting

14 ‘‘1902(a)(10)(A)(ii)(XIII),’’ before

15 ‘‘1902(a)(10)(A)(ii)(XV)’’.

16 (c) EFFECTIVE DATE.—

17 (1) IN GENERAL.—Except as provided in para18 graph (2), the amendments made by this section

19 apply to medical assistance for items and services

20 furnished on or after October 1, 1999.

21 (2) RETROACTIVITY OF CONFORMING AMEND22 MENT.—The amendment made by subsection (b)(2)

23 takes effect as if included in the enactment of the

24 Balanced Budget Act of 1997.
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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

5 Security 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

9 months’’; 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

13 apply—

14 ‘‘(1) for months occurring during the 10-year

15 period beginning with the first month that begins

16 after the date of enactment of this subsection; and

17 ‘‘(2) for subsequent months, in the case of an

18 individual who was entitled to benefits under sub19 section (b) as of the last month of such 10-year pe20 riod and would continue (but for such 24-month lim21 itation) to be so entitled.’’.

22 (2) CONFORMING AMENDMENT.—Section

23 1818A(a)(2)(C) of the Social Security Act (42

24 U.S.C. 1395i–2a(a)(2)(C)) is amended—

25 (A) by striking ‘‘solely’’; and
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1 (B) by inserting ‘‘or the expiration of the

2 last month of the 10-year period described in

3 section 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

15 subsection (a) apply to months beginning with the first

16 month that begins after the date of the enactment of this

17 Act.

18 (d) TREATMENT OF CERTAIN INDIVIDUALS.—An in19 dividual enrolled under section 1818A of the Social Secu20 rity Act (42 U.S.C. 1395i–2a) shall be treated with re21 spect to premium payment obligations under such section

22 as though the individual had continued to be entitled to

23 benefits under section 226(b) of such Act for—
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1 (1) months described in section 226(j)(1) of

2 such Act (42 U.S.C. 426(j)(1)) (as added by sub3 section (a)); and

4 (2) subsequent months, in the case of an indi5 vidual who was so enrolled as of the last month de6 scribed in section 226(j)(2) of such Act (42 U.S.C.

7 426(j)(2)) (as so added).

8 SEC. 103. GRANTS TO DEVELOP AND ESTABLISH STATE IN9 FRASTRUCTURES TO SUPPORT WORKING IN10 DIVIDUALS WITH DISABILITIES.

11 (a) ESTABLISHMENT.—

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

13 Human Services (in this section referred to as the

14 ‘‘Secretary’’) shall award grants described in sub15 section (b) to States to support the design, establish16 ment, and operation of State infrastructures that

17 provide items and services to support working indi18 viduals with disabilities.

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

20 an award of a grant under this section, a State shall

21 submit an application to the Secretary at such time,

22 in such manner, and containing such information as

23 the Secretary shall require.

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

25 the term ‘‘State’’ means each of the 50 States, the
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1 District of Columbia, Puerto Rico, Guam, the

2 United States Virgin Islands, American Samoa, and

3 the Commonwealth of the Northern Mariana Is4 lands.

5 (b) GRANTS FOR INFRASTRUCTURE AND OUT6 REACH.—

7 (1) IN GENERAL.—Out of the funds appro8 priated under subsection (e), the Secretary shall

9 award grants to States to—

10 (A) support the establishment, implemen11 tation, and operation of the State infrastruc12 tures described in subsection (a); and

13 (B) conduct outreach campaigns regarding

14 the existence of such infrastructures.

15 (2) ELIGIBILITY FOR GRANTS.—

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

17 grant under this subsection unless the State—

18 (i) has an approved amendment to the

19 State plan under title XIX of the Social

20 Security Act (42 U.S.C. 1396 et seq.) that

21 provides medical assistance under such

22 plan to individuals described in section

23 1902(a)(10)(A)(ii)(XV) of the Social Secu24 rity Act (42 U.S.C.

25 1396a(a)(10)(A)(ii)(XV)); and
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1 (ii) demonstrates to the satisfaction of

2 the Secretary that the State makes per3 sonal assistance services available under

4 the State plan under title XIX of the So5 cial Security Act (42 U.S.C. 1396 et seq.)

6 to the extent necessary to enable individ7 uals described in clause (i) to remain em8 ployed (as determined under section

9 1905(v)(2) of the Social Security Act (42

10 U.S.C. 1396d(v)(2))).

11 (B) DEFINITION OF PERSONAL ASSIST12 ANCE SERVICES.—In this paragraph, the term

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

14 services, provided by 1 or more persons, de15 signed to assist an individual with a disability

16 to perform daily activities on and off the job

17 that the individual would typically perform if

18 the individual did not have a disability. Such

19 services shall be designed to increase the indi20 vidual’s control in life and ability to perform ev21 eryday activities on or off the job.

22 (3) DETERMINATION OF AWARDS.—

23 (A) IN GENERAL.—Subject to subpara24 graph (B), the Secretary shall determine a for25 mula for awarding grants to States under this
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1 section that provides special consideration to

2 States that provide medical assistance under

3 title XIX of the Social Security Act to individ4 uals described in section

5 1902(a)(10)(A)(ii)(XVI) of that Act (42 U.S.C.

6 1396a(a)(10)(A)(ii)(XVI)).

7 (B) AWARD LIMITS.—

8 (i) MINIMUM AWARDS.—

9 (I) IN GENERAL.—Subject to

10 subclause (II), no State with an ap11 proved application under this section

12 shall receive a grant for a fiscal year

13 that is less than $500,000.

14 (II) PRO RATA REDUCTIONS.—If

15 the funds appropriated under sub16 section (e) for a fiscal year are not

17 sufficient to pay each State with an

18 application approved under this sec19 tion the minimum amount described

20 in subclause (I), the Secretary shall

21 pay each such State an amount equal

22 to the pro rata share of the amount

23 made available.

24 (ii) MAXIMUM AWARDS.—No State

25 with an application that has been approved
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1 under this section shall receive a grant for

2 a fiscal year that exceeds 15 percent of the

3 total expenditures by the State (including

4 the reimbursed Federal share of such ex5 penditures) for medical assistance for indi6 viduals eligible under subclause (XV) and

7 (XVI) of section 1902(a)(10)(A)(ii) of the

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

9 1396a(a)(10)(A)(ii)), as estimated by the

10 State and approved by the Secretary.

11 (c) AVAILABILITY OF FUNDS.—

12 (1) FUNDS AWARDED TO STATES.—Funds

13 awarded to a State under a grant made under this

14 section for a fiscal year shall remain available until

15 expended.

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

17 not awarded to States in the fiscal year for which

18 they are appropriated shall remain available in suc19 ceeding fiscal years for awarding by the Secretary.

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

21 grant under this section shall submit an annual report to

22 the Secretary on the use of funds provided under the

23 grant. Each report shall include the percentage increase

24 in the number of title II disability beneficiaries, as defined

25 in section 1148(k)(3) of the Social Security Act (as
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1 amended by section 201) in the State, and title XVI dis2 ability beneficiaries, as defined in section 1148(k)(4) of

3 the Social Security Act (as so amended) in the State who

4 return to work.

5 (e) APPROPRIATION.—

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

7 Treasury not otherwise appropriated, there is appro8 priated to make grants under this section—

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

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

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

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

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

14 (F) for each of fiscal years 2005 through

15 2010, the amount appropriated for the pre16 ceding fiscal year increased by the percentage

17 increase (if any) in the Consumer Price Index

18 for All Urban Consumers (United States city

19 average) for the preceding fiscal year.

20 (2) BUDGET AUTHORITY.—This subsection con21 stitutes budget authority in advance of appropria22 tions Acts and represents the obligation of the Fed23 eral Government to provide for the payment of the

24 amounts appropriated under paragraph (1).
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1 (f) RECOMMENDATION.—Not later than October 1,

2 2009, the Secretary, in consultation with the Work Incen3 tives Advisory Panel established under section 201(f),

4 shall submit a recommendation to the Committee on Com5 merce of the House of Representatives and the Committee

6 on Finance of the Senate regarding whether the grant pro7 gram established under this section should be continued

8 after fiscal year 2010.

9 SEC. 104. DEMONSTRATION OF COVERAGE UNDER THE

10 MEDICAID PROGRAM OF WORKERS WITH PO11 TENTIALLY SEVERE DISABILITIES.

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

13 Secretary of Health and Human Services (in this section

14 referred to as the ‘‘Secretary’’) for approval of a dem15 onstration project (in this section referred to as a ‘‘dem16 onstration project’’) under which up to a specified max17 imum number of individuals who are workers with a po18 tentially severe disability (as defined in subsection (b)(1))

19 are provided medical assistance equal to that provided

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

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

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

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

24 (b) WORKER WITH A POTENTIALLY SEVERE DIS25 ABILITY DEFINED.—For purposes of this section—
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1 (1) IN GENERAL.—The term ‘‘worker with a

2 potentially severe disability’’ means, with respect to

3 a demonstration project, an individual who—

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

5 of age;

6 (B) has a specific physical or mental im7 pairment that, as defined by the State under

8 the demonstration project, is reasonably ex9 pected, but for the receipt of items and services

10 described in section 1905(a) of the Social Secu11 rity Act (42 U.S.C. 1396d(a)), to become blind

12 or disabled (as defined under section 1614(a) of

13 the Social Security Act (42 U.S.C. 1382c(a)));

14 and

15 (C) is employed (as defined in paragraph

16 (2)).

17 (2) DEFINITION OF EMPLOYED.—An individual

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

19 (A) is earning at least the applicable min20 imum wage requirement under section 6 of the

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

22 working at least 40 hours per month; or

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

24 substantial and reasonable threshold criteria for

25 hours of work, wages, or other measures, as de-
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1 fined under the demonstration project and ap2 proved by the Secretary.

3 (c) APPROVAL OF DEMONSTRATION PROJECTS.—

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

5 the Secretary shall approve applications under sub6 section (a) that meet the requirements of paragraph

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

8 Secretary may require. The Secretary may waive the

9 requirement of section 1902(a)(1) of the Social Se10 curity Act (42 U.S.C. 1396a(a)(1)) to allow for sub11 State demonstrations.

12 (2) TERMS AND CONDITIONS OF DEMONSTRA13 TION PROJECTS.—The Secretary may not approve a

14 demonstration project under this section unless the

15 State provides assurances satisfactory to the Sec16 retary that the following conditions are or will be

17 met:

18 (A) ELECTION OF OPTIONAL CATEGORY.—

19 The State has elected to provide coverage under

20 its plan under title XIX of the Social Security

21 Act of individuals described in section

22 1902(a)(10)(A)(ii)(XV) of the Social Security

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

24 (B) MAINTENANCE OF STATE EFFORT.—

25 Federal funds paid to a State pursuant to this
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1 section must be used to supplement, but not

2 supplant, the level of State funds expended for

3 workers with potentially severe disabilities

4 under programs in effect for such individuals

5 at the time the demonstration project is ap6 proved under this section.

7 (C) INDEPENDENT EVALUATION.—The

8 State provides for an independent evaluation of

9 the project.

10 (3) LIMITATIONS ON FEDERAL FUNDING.—

11 (A) APPROPRIATION.—

12 (i) IN GENERAL.—Out of any funds in

13 the Treasury not otherwise appropriated,

14 there is appropriated to carry out this

15 section—

16 (I) for fiscal year 2000,

17 $70,000,000;

18 (II) for fiscal year 2001,

19 $73,000,000;

20 (III) for fiscal year 2002,

21 $77,000,000; and

22 (IV) for fiscal year 2003,

23 $80,000,000.

24 (ii) BUDGET AUTHORITY.—Clause (i)

25 constitutes budget authority in advance of
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1 appropriations Acts and represents the ob2 ligation of the Federal Government to pro3 vide for the payment of the amounts ap4 propriated under clause (i).

5 (B) LIMITATION ON PAYMENTS.—In no

6 case may—

7 (i) the aggregate amount of payments

8 made by the Secretary to States under this

9 section exceed $300,000,000; or

10 (ii) payments be provided by the Sec11 retary for a fiscal year after fiscal year

12 2005.

13 (C) FUNDS ALLOCATED TO STATES.—The

14 Secretary shall allocate funds to States based

15 on their applications and the availability of

16 funds. Funds allocated to a State under a grant

17 made under this section for a fiscal year shall

18 remain available until expended.

19 (D) FUNDS NOT ALLOCATED TO STATES.—

20 Funds not allocated to States in the fiscal year

21 for which they are appropriated shall remain

22 available in succeeding fiscal years for alloca23 tion by the Secretary using the allocation for24 mula established under this section.
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1 (E) PAYMENTS TO STATES.—The Sec2 retary shall pay to each State with a dem3 onstration project approved under this section,

4 from its allocation under subparagraph (C), an

5 amount for each quarter equal to the Federal

6 medical assistance percentage (as defined in

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

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

9 for medical assistance provided to workers with

10 a potentially severe disability.

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

12 2002, the Secretary shall submit a recommendation to the

13 Committee on Commerce of the House of Representatives

14 and the Committee on Finance of the Senate regarding

15 whether the demonstration project established under this

16 section should be continued after fiscal year 2003.

17 (e) STATE DEFINED.—In this section, the term

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

19 title XIX of the Social Security Act (42 U.S.C. 1396 et

20 seq.).
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1 TITLE II—TICKET TO WORK AND

2 SELF-SUFFICIENCY AND RE3 LATED PROVISIONS

4 Subtitle A—Ticket to Work and

5 Self-Sufficiency

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

7 SELF-SUFFICIENCY PROGRAM.

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

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

13 2928)) the following:

14 ‘‘TICKET TO WORK AND SELF-SUFFICIENCY PROGRAM

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

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

18 to work and self-sufficiency issued by the Commissioner

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

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

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

4 the Program.

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

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

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

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

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

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

15 which is serving under the Program and to which

16 such ticket is assigned by the beneficiary, for such

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

19 network may provide to the beneficiary.

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

23 the outcome payment system under subsection

24 (h)(2) or under the outcome-milestone payment sys25 tem under subsection (h)(3) (whichever is elected
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1 pursuant to subsection (h)(1)). An employment net2 work may not request or receive compensation for

3 such services from the beneficiary.

4 ‘‘(c) STATE PARTICIPATION.—

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

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

10 disabled beneficiary. If the State agency does elect

11 to participate in the Program, the State agency also

12 shall elect to be paid under the outcome payment

13 system or the outcome-milestone payment system in

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

15 disabled beneficiary that the State agency does not

16 elect to have participate in the Program, the State

17 agency shall be paid for services provided to that

18 beneficiary under the system for payment applicable

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

20 section 1615. The Commissioner shall provide for

21 periodic opportunities for exercising such elections

22 (and revocations).

23 ‘‘(2) EFFECT OF PARTICIPATION BY STATE

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

2 In any case in which a State agency described

3 in paragraph (1) elects under that paragraph to

4 participate in the Program, the employment

5 services, vocational rehabilitation services, and

6 other support services which, upon assignment

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

9 agency acting as an employment network shall

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

13 ‘‘(B) STATE AGENCIES ADMINISTERING

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

16 with respect to any State agency administering

17 a program under title V of this Act.

18 ‘‘(3) SPECIAL REQUIREMENTS APPLICABLE TO

19 CROSS-REFERRAL TO CERTAIN STATE AGENCIES.—

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

21 an employment network has been assigned a

22 ticket to work and self-sufficiency by a disabled

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

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

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

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

9 an employment network that has not entered

10 into such a written agreement with such a

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

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

19 pursuant to subparagraph (C)—

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

21 employment network holding the ticket will

22 provide to the State agency—

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

2 beneficiary; and

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

5 the employment network pursuant to

6 subsection (h); and

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

8 required by such regulations.

9 ‘‘(C) REGULATIONS.—The Commissioner

10 and the Secretary of Education shall jointly

11 prescribe regulations specifying the terms of

12 agreements required by subparagraph (A) and

13 otherwise necessary to carry out the provisions

14 of this paragraph.

15 ‘‘(D) PENALTY.—No payment may be

16 made to an employment network pursuant to

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

20 subparagraph (A) in violation of the terms of

21 the agreement required under subparagraph (A)

22 or without having entered into such an agree23 ment.

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

3 into agreements with 1 or more organizations in the

4 private or public sector for service as a program

5 manager to assist the Commissioner in admin6 istering the Program. Any such program manager

7 shall be selected by means of a competitive bidding

8 process, from among organizations in the private or

9 public sector with available expertise and experience

10 in the field of vocational rehabilitation and employ11 ment services.

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

15 failure to meet performance standards which shall be

16 specified in the agreement and which shall be

17 weighted to take into account any performance in

18 prior terms. Such performance standards shall

19 include—

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

22 ‘‘(B) measures for determining the extent

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

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

3 AREA.—Agreements under paragraph (1) shall

4 preclude—

5 ‘‘(A) direct participation by a program

6 manager in the delivery of employment services,

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

9 covered by the program manager’s agreement;

10 and

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

12 a financial interest in an employment network

13 or service provider which provides services in a

14 geographic area covered under the program

15 manager’s agreement.

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

18 ‘‘(A) IN GENERAL.—The Commissioner

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

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

2 State where the Program is being implemented,

3 the Commissioner shall enter into an agreement

4 with any alternate participant that is operating

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

6 State as of the date of enactment of this section

7 and chooses to serve as an employment network

8 under the Program.

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

11 terminate agreements with employment networks for

12 inadequate performance, as determined by the Com13 missioner.

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

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

17 the provision of services by employment networks.

18 The Commissioner shall solicit and consider the

19 views of consumers and the program manager under

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

23 that the results of the periodic reviews are made

24 available to beneficiaries who are prospective service

25 recipients as they select employment networks. The
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1 Commissioner shall ensure that the periodic surveys

2 of beneficiaries receiving services under the Program

3 are designed to measure customer service satisfac4 tion.

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

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

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

11 party to such a dispute a reasonable opportunity for

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

13 ‘‘(e) PROGRAM MANAGERS.—

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

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

17 administering the Program.

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

22 program manager shall carry out such recruitment

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

25 in the geographic area covered under the program
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1 manager’s agreement, to the extent necessary and

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

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

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

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

13 of such agreement and this section. The program

14 manager shall not impose numerical limits on the

15 number of employment networks to be recommended

16 pursuant to this paragraph.

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

20 to employment networks. The program manager

21 shall ensure that each beneficiary is allowed changes

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

24 to have rejected services under the Program. The

25 program manager shall establish and maintain lists
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1 of employment networks available to beneficiaries

2 and shall make such lists generally available to the

3 public. The program manager shall ensure that all

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

7 ‘‘(4) ENSURING AVAILABILITY OF ADEQUATE

8 SERVICES.—The program manager shall ensure that

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

11 beneficiaries throughout the geographic area covered

12 under the program manager’s agreement, including

13 rural areas.

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

15 program manager shall take such measures as are

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

20 services, and other support services. Services pro21 vided under the Program may include case manage22 ment, work incentives planning, supported employ23 ment, career planning, career plan development, vo24 cational assessment, job training, placement, fol25 lowup services, and such other services as may be
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1 specified by the Commissioner under the Program.

2 The program manager shall ensure that such serv3 ices are available in each service area.

4 ‘‘(f) EMPLOYMENT NETWORKS.—

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

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

9 an agency or instrumentality of a State (or a

10 political subdivision thereof) or a private entity

11 that assumes responsibility for the coordination

12 and delivery of services under the Program to

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

15 under subsection (b).

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

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

19 established under subtitle B of title I of the

20 Workforce Investment Act of 1998.

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

23 under the Program unless it meets and main24 tains compliance with both general selection cri25 teria (such as professional and educational
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1 qualifications (where applicable)) and specific

2 selection criteria (such as substantial expertise

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

5 ‘‘(D) SINGLE OR ASSOCIATED PROVIDERS

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

8 or of an association of such providers organized

9 so as to combine their resources into a single

10 entity. An employment network may meet the

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

12 services directly, or by entering into agreements

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

16 ‘‘(2) REQUIREMENTS RELATING TO PROVISION

17 OF SERVICES.—Each employment network serving

18 under the Program shall be required under the

19 terms of its agreement with the Commissioner to—

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

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

22 to ensure that employment services, vocational

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

25 agreements entered into with, the employment
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1 network are provided under appropriate indi2 vidual work plans meeting the requirements of

3 subsection (g).

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

5 employment network shall meet financial reporting

6 requirements as prescribed by the Commissioner.

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

8 employment network shall prepare periodic reports,

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

10 period specific outcomes achieved with respect to

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

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

16 this paragraph to each beneficiary upon enrollment

17 under the Program for services to be received

18 through such employment network. Upon issuance of

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

20 shall be maintained in the files of the employment

21 network. The program manager shall ensure that

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

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

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

4 to ensure that employment services, vocational

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

7 agreements entered into with, the employment

8 network are provided under appropriate indi9 vidual work plans that meet the requirements of

10 subparagraph (C);

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

13 beneficiary receiving such services in a manner

14 that affords the beneficiary the opportunity to

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

17 achieve that employment goal;

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

19 includes at least—

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

21 developed with the beneficiary;

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

23 supports that have been deemed necessary

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

2 conditions related to the provision of such

3 services and supports; and

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

6 Program (such as the right to retrieve the

7 ticket to work and self-sufficiency if the

8 beneficiary is dissatisfied with the services

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

13 in resolving disputes through the State

14 grant program authorized under section

15 1150;

16 ‘‘(D) provide a beneficiary the opportunity

17 to amend the individual work plan if a change

18 in circumstances necessitates a change in the

19 plan; and

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

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

23 beneficiary.

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

25 A beneficiary’s individual work plan shall take effect
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1 upon written approval by the beneficiary or a rep2 resentative of the beneficiary and a representative of

3 the employment network that, in providing such

4 written approval, acknowledges assignment of the

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

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

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

9 ‘‘(A) IN GENERAL.—The Program shall

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

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

15 utilized by the employment network, and, for

16 such period of time as such election remains in

17 effect, the payment system so elected shall be

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

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

25 an employment network that would result in a
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1 change in the method of payment to the em2 ployment network for services provided to a

3 beneficiary who is receiving services from the

4 employment network at the time of the election

5 shall not be effective with respect to payment

6 for services provided to that beneficiary and the

7 method of payment previously selected shall

8 continue to apply with respect to such services.

9 ‘‘(2) OUTCOME PAYMENT SYSTEM.—

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

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

14 requirements of this paragraph.

15 ‘‘(B) PAYMENTS MADE DURING OUTCOME

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

18 an employment network in connection with each

19 individual who is a beneficiary for each month

20 during the individual’s outcome payment period

21 for which benefits (described in paragraphs (3)

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

23 such individual because of work or earnings.

24 ‘‘(C) COMPUTATION OF PAYMENTS TO EM25 PLOYMENT NETWORK.—The payment schedule
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1 of the outcome payment system shall be de2 signed so that—

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

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

7 not payable is equal to a fixed percentage

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

10 and

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

12 percentage which does not exceed 40 per13 cent.

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

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

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

20 which meets the requirements of this para21 graph.

22 ‘‘(B) EARLY PAYMENTS UPON ATTAIN23 MENT OF MILESTONES IN ADVANCE OF OUT24 COME PAYMENT PERIODS.—The outcome-mile25 stone payment system shall provide for 1 or
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1 more milestones with respect to beneficiaries re2 ceiving services from an employment network

3 under the Program that are directed toward the

4 goal of permanent employment. Such milestones

5 shall form a part of a payment structure that

6 provides, in addition to payments made during

7 outcome payment periods, payments made prior

8 to outcome payment periods in amounts based

9 on the attainment of such milestones.

10 ‘‘(C) LIMITATION ON TOTAL PAYMENTS TO

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

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

15 to each beneficiary is less than, on a net

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

20 the employment network with respect to the

21 beneficiary would be limited if the employment

22 network were paid under the outcome payment

23 system.

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

2 term ‘payment calculation base’ means, for any

3 calendar year—

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

6 insurance benefit payable under section

7 223 for all beneficiaries for months during

8 the preceding calendar year; and

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

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

12 average payment of supplemental security

13 income benefits based on disability payable

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

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

19 ‘‘(B) OUTCOME PAYMENT PERIOD.—The

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

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

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

25 ending after the date on which such ticket
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1 was assigned to the employment network,

2 for which benefits (described in paragraphs

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

6 by reason of earnings from work activity;

7 and

8 ‘‘(ii) ending with the 60th month

9 (consecutive or otherwise), ending after

10 such date, for which such benefits are not

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

13 by reason of earnings from work activity.

14 ‘‘(5) PERIODIC REVIEW AND ALTERATIONS OF

15 PRESCRIBED SCHEDULES.—

16 ‘‘(A) PERCENTAGES AND PERIODS.—The

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

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

20 and the period of time specified in paragraph

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

22 such permissible payments, and such period

23 provide an adequate incentive for employment

24 networks to assist beneficiaries to enter the

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

2 percentage, such total permissible payments, or

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

6 such an alteration would better provide the in7 centive and economies described in the pre8 ceding sentence.

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

11 periodically review the number and amounts of

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

14 whether they provide an adequate incentive for

15 employment networks to assist beneficiaries to

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

19 Panel established under section 201(f) of the

20 Work Incentives Improvement Act of 1999, and

21 other reliable sources. The Commissioner may

22 from time to time alter the number and

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

25 section to the extent that the Commissioner de-
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1 termines that such an alteration would allow an

2 adequate incentive for employment networks to

3 assist beneficiaries to enter the workforce. Such

4 alteration shall be based on information pro5 vided to the Commissioner by program man6 agers, the Work Incentives Advisory Panel es7 tablished under section 201(f) of the Work In8 centives Improvement Act of 1999, or other re9 liable sources.

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

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

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

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

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

17 under title XVI similar to any such review under section

18 221.

19 ‘‘(j) ALLOCATION OF COSTS.—

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

23 Program as an employment network) shall be made

24 from the Federal Old-Age and Survivors Insurance

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

2 title II disability beneficiaries who return to work, or

3 from the appropriation made available for making

4 supplemental security income payments under title

5 XVI, in the case of title XVI disability beneficiaries

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

8 under title II and eligible for payments under title

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

11 to which the tickets of such beneficiaries have been

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

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

15 of administering this section (other than payments

16 to employment networks) shall be paid from

17 amounts made available for the administration of

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

20 those amounts as appropriate.

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

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

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

5 term ‘title II disability beneficiary’ means an indi6 vidual entitled to disability insurance benefits under

7 section 223 or to monthly insurance benefits under

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

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

10 disability beneficiary for each month for which such

11 individual is entitled to such benefits.

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

13 The term ‘title XVI disability beneficiary’ means an

14 individual eligible for supplemental security income

15 benefits under title XVI on the basis of blindness

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

18 An individual is a title XVI disability beneficiary for

19 each month for which such individual is eligible for

20 such benefits.

21 ‘‘(5) SUPPLEMENTAL SECURITY INCOME BEN22 EFIT UNDER TITLE XVI.—The term ‘supplemental

23 security income benefit under title XVI’ means a

24 cash benefit under section 1611 or 1619(a), and
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1 does not include a State supplementary payment,

2 administered federally or otherwise.

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

4 date of enactment of this section, the Commissioner shall

5 prescribe such regulations as are necessary to carry out

6 the provisions of this section.

7 ‘‘(m) REAUTHORIZATION OF PROGRAM.—

8 ‘‘(1) IN GENERAL.—The Program established

9 under this section shall terminate on the date that

10 is 5 years after the date that the Commissioner com11 mences implementation of the Program.

12 ‘‘(2) ASSURANCE OF OUTCOME PAYMENT PE13 RIOD.—Notwithstanding paragraph (1)—

14 ‘‘(A) any individual who has initiated a

15 work plan in accordance with subsection (g)

16 may use services provided under the Program

17 in accordance with this section; and

18 ‘‘(B) any employment network that pro19 vides services to such an individual shall receive

20 payments for such services,

21 during the individual’s outcome payment period (as

22 defined in paragraph (4)(B) of subsection (h), in23 cluding any alteration of such period in accordance

24 with paragraph (5) of that subsection).’’.

25 (b) CONFORMING AMENDMENTS.—
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1 (1) AMENDMENTS TO TITLE II.—

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

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

4 the end the following:

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

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

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

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

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

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

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

12 (D) Section 225(b)(1) of the Social Secu13 rity Act (42 U.S.C. 425(b)(1)) is amended by

14 striking ‘‘a program of vocational rehabilitation

15 services’’ and inserting ‘‘a program consisting

16 of the Ticket to Work and Self-Sufficiency Pro17 gram under section 1148 or another program of

18 vocational rehabilitation services, employment

19 services, or other support services’’.

20 (2) AMENDMENTS TO TITLE XVI.—

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

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

23 as follows:

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

25 individual who—
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1 ‘‘(1) has not attained age 16, and

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

3 under this title,

4 the Commissioner of Social Security shall make provision

5 for referral of such individual to the appropriate State

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

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

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

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

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

11 amended by striking ‘‘a program of vocational

12 rehabilitation services’’ and inserting ‘‘a pro13 gram consisting of the Ticket to Work and Self14 Sufficiency Program under section 1148 or an15 other program of vocational rehabilitation serv16 ices, employment services, or other support

17 services’’.

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

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

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

21 (ii) by adding at the end the fol22 lowing:

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

24 and other reviews under this title similar to reviews under
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1 section 221 in the case of an individual using a ticket to

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

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

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

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

6 date of enactment of this Act.

7 (d) GRADUATED IMPLEMENTATION OF PROGRAM.—

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

9 the date of enactment of this Act, the Commissioner

10 of Social Security shall commence implementation of

11 the amendments made by this section (other than

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

13 graduated phases at phase-in sites selected by the

14 Commissioner. Such phase-in sites shall be selected

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

16 Ticket to Work and Self-Sufficiency Program, the

17 development and refinement of referral processes,

18 payment systems, computer linkages, management

19 information systems, and administrative processes

20 necessary to provide for full implementation of such

21 amendments. Subsection (c) shall apply with respect

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

23 without regard to this subsection.

24 (2) REQUIREMENTS.—Implementation of the

25 Program at each phase-in site shall be carried out
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1 on a wide enough scale to permit a thorough evalua2 tion of the alternative methods under consideration,

3 so as to ensure that the most efficacious methods

4 are determined and in place for full implementation

5 of the Program on a timely basis.

6 (3) FULL IMPLEMENTATION.—The Commis7 sioner shall ensure that the ability to provide tickets

8 and services to individuals under the Program exists

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

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

11 than 3 years after such date.

12 (4) ONGOING EVALUATION OF PROGRAM.—

13 (A) IN GENERAL.—The Commissioner

14 shall design and conduct a series of evaluations

15 to assess the cost-effectiveness of activities car16 ried out under this section and the amendments

17 made thereby, as well as the effects of this sec18 tion and the amendments made thereby on

19 work outcomes for beneficiaries receiving tickets

20 to work and self-sufficiency under the Program.

21 (B) CONSULTATION.—The Commissioner

22 shall design and carry out the series of evalua23 tions after receiving relevant advice from ex24 perts in the fields of disability, vocational reha25 bilitation, and program evaluation and individ-
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1 uals using tickets to work and self-sufficiency

2 under the Program and consulting with the

3 Work Incentives Advisory Panel established

4 under section 201(f), the Comptroller General

5 of the United States, other agencies of the Fed6 eral Government, and private organizations

7 with appropriate expertise.

8 (C) METHODOLOGY.—

9 (i) IMPLEMENTATION.—The Commis10 sioner, in consultation with the Work In11 centives Advisory Panel established under

12 section 201(f), shall ensure that plans for

13 evaluations and data collection methods

14 under the Program are appropriately de15 signed to obtain detailed employment infor16 mation.

17 (ii) SPECIFIC MATTERS TO BE AD18 DRESSED.—Each such evaluation shall ad19 dress (but is not limited to)—

20 (I) the annual cost (including net

21 cost) of the Program and the annual

22 cost (including net cost) that would

23 have been incurred in the absence of

24 the Program;
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1 (II) the determinants of return to

2 work, including the characteristics of

3 beneficiaries in receipt of tickets

4 under the Program;

5 (III) the types of employment

6 services, vocational rehabilitation serv7 ices, and other support services fur8 nished to beneficiaries in receipt of

9 tickets under the Program who return

10 to work and to those who do not re11 turn to work;

12 (IV) the duration of employment

13 services, vocational rehabilitation serv14 ices, and other support services fur15 nished to beneficiaries in receipt of

16 tickets under the Program who return

17 to work and the duration of such serv18 ices furnished to those who do not re19 turn to work and the cost to employ20 ment networks of furnishing such

21 services;

22 (V) the employment outcomes,

23 including wages, occupations, benefits,

24 and hours worked, of beneficiaries

25 who return to work after receiving
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1 tickets under the Program and those

2 who return to work without receiving

3 such tickets;

4 (VI) the characteristics of pro5 viders whose services are provided

6 within an employment network under

7 the Program;

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

9 employment networks display a great10 er willingness to provide services to

11 beneficiaries with a range of disabil12 ities;

13 (VIII) the characteristics (includ14 ing employment outcomes) of those

15 beneficiaries who receive services

16 under the outcome payment system

17 and of those beneficiaries who receive

18 services under the outcome-milestone

19 payment system;

20 (IX) measures of satisfaction

21 among beneficiaries in receipt of tick22 ets under the Program; and

23 (X) reasons for (including com24 ments solicited from beneficiaries re25 garding) their choice not to use their
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1 tickets or their inability to return to

2 work despite the use of their tickets.

3 (D) PERIODIC EVALUATION REPORTS.—

4 Following the close of the third and fifth fiscal

5 years ending after the effective date under sub6 section (c), and prior to the close of the seventh

7 fiscal year ending after such date, the Commis8 sioner shall transmit to the Committee on Ways

9 and Means of the House of Representatives and

10 the Committee on Finance of the Senate a re11 port containing the Commissioner’s evaluation

12 of the progress of activities conducted under the

13 provisions of this section and the amendments

14 made thereby. Each such report shall set forth

15 the Commissioner’s evaluation of the extent to

16 which the Program has been successful and the

17 Commissioner’s conclusions on whether or how

18 the Program should be modified. Each such re19 port shall include such data, findings, materials,

20 and recommendations as the Commissioner may

21 consider appropriate.

22 (5) EXTENT OF STATE’S RIGHT OF FIRST RE23 FUSAL IN ADVANCE OF FULL IMPLEMENTATION OF

24 AMENDMENTS IN SUCH STATE.—
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1 (A) IN GENERAL.—In the case of any

2 State in which the amendments made by sub3 section (a) have not been fully implemented

4 pursuant to this subsection, the Commissioner

5 shall determine by regulation the extent to

6 which—

7 (i) the requirement under section

8 222(a) of the Social Security Act for

9 prompt referrals to a State agency, and

10 (ii) the authority of the Commissioner

11 under section 222(d)(2) of the Social Secu12 rity Act to provide vocational rehabilitation

13 services in such State by agreement or

14 contract with other public or private agen15 cies, organizations, institutions, or individ16 uals,

17 shall apply in such State.

18 (B) EXISTING AGREEMENTS.—Nothing in

19 subparagraph (A) or the amendments made by

20 subsection (a) shall be construed to limit, im21 pede, or otherwise affect any agreement entered

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

23 Security Act before the date of enactment of

24 this Act with respect to services provided pursu25 ant to such agreement to beneficiaries receiving
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1 services under such agreement as of such date,

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

3 provided after 3 years after the effective date

4 provided in subsection (c).

5 (e) SPECIFIC REGULATIONS REQUIRED.—

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

7 Security shall prescribe such regulations as are nec8 essary to implement the amendments made by this

9 section.

10 (2) SPECIFIC MATTERS TO BE INCLUDED IN

11 REGULATIONS.—The matters which shall be ad12 dressed in such regulations shall include—

13 (A) the form and manner in which tickets

14 to work and self-sufficiency may be distributed

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

16 of the Social Security Act;

17 (B) the format and wording of such tick18 ets, which shall incorporate by reference any

19 contractual terms governing service by employ20 ment networks under the Program;

21 (C) the form and manner in which State

22 agencies may elect participation in the Ticket to

23 Work and Self-Sufficiency Program (and revoke

24 such an election) pursuant to section

25 1148(c)(1) of the Social Security Act and provi-
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1 sion for periodic opportunities for exercising

2 such elections (and revocations);

3 (D) the status of State agencies under sec4 tion 1148(c)(1) at the time that State agencies

5 exercise elections (and revocations) under that

6 section;

7 (E) the terms of agreements to be entered

8 into with program managers pursuant to sec9 tion 1148(d) of the Social Security Act,

10 including—

11 (i) the terms by which program man12 agers are precluded from direct participa13 tion in the delivery of services pursuant to

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

15 Act;

16 (ii) standards which must be met by

17 quality assurance measures referred to in

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

19 methods of recruitment of employment net20 works utilized pursuant to paragraph (2)

21 of section 1148(e); and

22 (iii) the format under which dispute

23 resolution will operate under section

24 1148(d)(7);
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1 (F) the terms of agreements to be entered

2 into with employment networks pursuant to sec3 tion 1148(d)(4) of the Social Security Act,

4 including—

5 (i) the manner in which service areas

6 are specified pursuant to section

7 1148(f)(2)(A) of the Social Security Act;

8 (ii) the general selection criteria and

9 the specific selection criteria which are ap10 plicable to employment networks under

11 section 1148(f)(1)(C) of the Social Secu12 rity Act in selecting service providers;

13 (iii) specific requirements relating to

14 annual financial reporting by employment

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

16 the Social Security Act; and

17 (iv) the national model to which peri18 odic outcomes reporting by employment

19 networks must conform under section

20 1148(f)(4) of the Social Security Act;

21 (G) standards which must be met by indi22 vidual work plans pursuant to section 1148(g)

23 of the Social Security Act;
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1 (H) standards which must be met by pay2 ment systems required under section 1148(h) of

3 the Social Security Act, including—

4 (i) the form and manner in which

5 elections by employment networks of pay6 ment systems are to be exercised pursuant

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

8 (ii) the terms which must be met by

9 an outcome payment system under section

10 1148(h)(2);

11 (iii) the terms which must be met by

12 an outcome-milestone payment system

13 under section 1148(h)(3);

14 (iv) any revision of the percentage

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

16 1148(h) of the Social Security Act or the

17 period of time specified in paragraph

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

19 (v) annual oversight procedures for

20 such systems; and

21 (I) procedures for effective oversight of the

22 Program by the Commissioner of Social Secu23 rity, including periodic reviews and reporting

24 requirements.

25 (f) WORK INCENTIVES ADVISORY PANEL.—
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1 (1) ESTABLISHMENT.—There is established

2 within the Social Security Administration a panel to

3 be known as the ‘‘Work Incentives Advisory Panel’’

4 (in this subsection referred to as the ‘‘Panel’’).

5 (2) DUTIES OF PANEL.—It shall be the duty of

6 the Panel to—

7 (A) advise the Secretary of Health and

8 Human Services, the Secretary of Labor, the

9 Secretary of Education, and the Commissioner

10 of Social Security on issues related to work in11 centives programs, planning, and assistance for

12 individuals with disabilities, including work in13 centive provisions under titles II, XI, XVI,

14 XVIII, and XIX of the Social Security Act (42

15 U.S.C. 401 et seq., 1301 et seq., 1381 et seq.,

16 1395 et seq., 1396 et seq.); and

17 (B) with respect to the Ticket to Work and

18 Self-Sufficiency Program established under sec19 tion 1148 of the Social Security Act—

20 (i) advise the Commissioner of Social

21 Security with respect to establishing phase22 in sites for such Program and fully imple23 menting the Program thereafter, the re24 finement of access of disabled beneficiaries

25 to employment networks, payment systems,
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1 and management information systems, and

2 advise the Commissioner whether such

3 measures are being taken to the extent

4 necessary to ensure the success of the Pro5 gram;

6 (ii) advise the Commissioner regard7 ing the most effective designs for research

8 and demonstration projects associated with

9 the Program or conducted pursuant to sec10 tion 302;

11 (iii) advise the Commissioner on the

12 development of performance measurements

13 relating to quality assurance under section

14 1148(d)(6) of the Social Security Act; and

15 (iv) furnish progress reports on the

16 Program to the Commissioner and each

17 House of Congress.

18 (3) MEMBERSHIP.—

19 (A) NUMBER AND APPOINTMENT.—The

20 Panel shall be composed of 12 members ap21 pointed by the Commissioner of Social Security

22 in consultation with the Speaker of the House

23 of Representatives, the Minority Leader of the

24 House of Representatives, the Majority Leader
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1 of the Senate, and the Minority Leader of the

2 Senate.

3 (B) REPRESENTATION.—All members ap4 pointed to the Panel shall have experience or

5 expert knowledge in the fields of, or related to,

6 work incentive programs, employment services,

7 vocational rehabilitation services, health care

8 services, and other support services for individ9 uals with disabilities. At least 7 members of the

10 Panel shall be individuals with disabilities or

11 representatives of individuals with disabilities,

12 except that, of those 7 members, at least 5

13 members shall be current or former title II dis14 ability beneficiaries or title XVI disability bene15 ficiaries (as such terms are defined in section

16 1148(k) of the Social Security Act (as added by

17 subsection (a)).

18 (C) TERMS.—

19 (i) IN GENERAL.—Each member shall

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

21 less, for the remaining life of the Panel),

22 except as provided in clauses (ii) and (iii).

23 The initial members shall be appointed not

24 later than 90 days after the date of enact25 ment of this Act.
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1 (ii) TERMS OF INITIAL AP2 POINTEES.—As designated by the Commis3 sioner at the time of appointment, of the

4 members first appointed—

5 (I) 6 of the members appointed

6 under subparagraph (A) shall be ap7 pointed for a term of 2 years; and

8 (II) 6 of the members appointed

9 under subparagraph (A) shall be ap10 pointed for a term of 4 years.

11 (iii) VACANCIES.—Any member ap12 pointed to fill a vacancy occurring before

13 the expiration of the term for which the

14 member’s predecessor was appointed shall

15 be appointed only for the remainder of that

16 term. A member may serve after the expi17 ration of that member’s term until a suc18 cessor has taken office. A vacancy in the

19 Panel shall be filled in the manner in

20 which the original appointment was made.

21 (D) BASIC PAY.—Members shall each be

22 paid at a rate, and in a manner, that is con23 sistent with guidelines established under section

24 7 of the Federal Advisory Committee Act (5

25 U.S.C. App.).
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1 (E) TRAVEL EXPENSES.—Each member

2 shall receive travel expenses, including per diem

3 in lieu of subsistence, in accordance with sec4 tions 5702 and 5703 of title 5, United States

5 Code.

6 (F) QUORUM.—Eight members of the

7 Panel shall constitute a quorum but a lesser

8 number may hold hearings.

9 (G) CHAIRPERSON.—The Chairperson of

10 the Panel shall be designated by the Commis11 sioner. The term of office of the Chairperson

12 shall be 4 years.

13 (H) MEETINGS.—The Panel shall meet at

14 least quarterly and at other times at the call of

15 the Chairperson or a majority of its members.

16 (4) DIRECTOR AND STAFF OF PANEL; EXPERTS

17 AND CONSULTANTS.—

18 (A) DIRECTOR.—The Panel shall have a

19 Director who shall be appointed by the Commis20 sioner and paid at a rate, and in a manner,

21 that is consistent with guidelines established

22 under section 7 of the Federal Advisory Com23 mittee Act (5 U.S.C. App.).

24 (B) STAFF.—Subject to rules prescribed

25 by the Commissioner, the Director may appoint
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1 and fix the pay of additional personnel as the

2 Director considers appropriate.

3 (C) EXPERTS AND CONSULTANTS.—Sub4 ject to rules prescribed by the Commissioner,

5 the Director may procure temporary and inter6 mittent services under section 3109(b) of title

7 5, United States Code.

8 (D) STAFF OF FEDERAL AGENCIES.—

9 Upon request of the Panel, the head of any

10 Federal department or agency may detail, on a

11 reimbursable basis, any of the personnel of that

12 department or agency to the Panel to assist it

13 in carrying out its duties under this subsection.

14 (5) POWERS OF PANEL.—

15 (A) HEARINGS AND SESSIONS.—The Panel

16 may, for the purpose of carrying out its duties

17 under this subsection, hold such hearings, sit

18 and act at such times and places, and take such

19 testimony and evidence as the Panel considers

20 appropriate.

21 (B) POWERS OF MEMBERS AND AGENTS.—

22 Any member or agent of the Panel may, if au23 thorized by the Panel, take any action which

24 the Panel is authorized to take by this sub25 section.
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1 (C) MAILS.—The Panel may use the

2 United States mails in the same manner and

3 under the same conditions as other departments

4 and agencies of the United States.

5 (6) REPORTS.—

6 (A) INTERIM REPORTS.—The Panel shall

7 submit to the President and Congress interim

8 reports at least annually.

9 (B) FINAL REPORT.—The Panel shall

10 transmit a final report to the President and

11 Congress not later than 8 years after the date

12 of enactment of this Act. The final report shall

13 contain a detailed statement of the findings and

14 conclusions of the Panel, together with its rec15 ommendations for legislation and administrative

16 actions which the Panel considers appropriate.

17 (7) TERMINATION.—The Panel shall terminate

18 30 days after the date of the submission of its final

19 report under paragraph (6)(B).

20 (8) ALLOCATION OF COSTS.—The costs of car21 rying out this subsection shall be paid from amounts

22 made available for the administration of title II of

23 the Social Security Act (42 U.S.C. 401 et seq.) and

24 amounts made available for the administration of

25 title XVI of that Act (42 U.S.C. 1381 et seq.), and
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1 shall be allocated among those amounts as appro2 priate.

3 Subtitle B—Elimination of Work

4 Disincentives

5 SEC. 211. WORK ACTIVITY STANDARD AS A BASIS FOR RE6 VIEW OF AN INDIVIDUAL’S DISABLED STATUS.

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

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

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

10 disability insurance benefits under section 223 or to

11 monthly insurance benefits under section 202 based on

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

13 has received such benefits for at least 24 months—

14 ‘‘(A) no continuing disability review conducted

15 by the Commissioner may be scheduled for the indi16 vidual solely as a result of the individual’s work ac17 tivity;

18 ‘‘(B) no work activity engaged in by the indi19 vidual may be used as evidence that the individual

20 is no longer disabled; and

21 ‘‘(C) no cessation of work activity by the indi22 vidual may give rise to a presumption that the indi23 vidual is unable to engage in work.

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

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

2 scheduled basis that is not triggered by work; and

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

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

7 SEC. 212. EXPEDITED REINSTATEMENT OF DISABILITY

8 BENEFITS.

9 (a) OASDI BENEFITS.—Section 223 of the Social

10 Security Act (42 U.S.C. 423) is amended—

11 (1) by redesignating subsection (i) as subsection

12 (j); and

13 (2) by inserting after subsection (h) the fol14 lowing:

15 ‘‘Reinstatement of Entitlement

16 ‘‘(i)(1)(A) Entitlement to benefits described in sub17 paragraph (B)(i)(I) shall be reinstated in any case where

18 the Commissioner determines that an individual described

19 in subparagraph (B) has filed a request for reinstatement

20 meeting the requirements of paragraph (2)(A) during the

21 period prescribed in subparagraph (C). Reinstatement of

22 such entitlement shall be in accordance with the terms of

23 this subsection.

24 ‘‘(B) An individual is described in this subparagraph

25 if—
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1 ‘‘(i) prior to the month in which the individual

2 files a request for reinstatement—

3 ‘‘(I) the individual was entitled to benefits

4 under this section or section 202 on the basis

5 of disability pursuant to an application filed

6 therefore; and

7 ‘‘(II) such entitlement terminated due to

8 the performance of substantial gainful activity;

9 ‘‘(ii) the individual is under a disability and the

10 physical or mental impairment that is the basis for

11 the finding of disability is the same as (or related

12 to) the physical or mental impairment that was the

13 basis for the finding of disability that gave rise to

14 the entitlement described in clause (i); and

15 ‘‘(iii) the individual’s disability renders the indi16 vidual unable to perform substantial gainful activity.

17 ‘‘(C)(i) Except as provided in clause (ii), the period

18 prescribed in this subparagraph with respect to an indi19 vidual is 60 consecutive months beginning with the month

20 following the most recent month for which the individual

21 was entitled to a benefit described in subparagraph

22 (B)(i)(I) prior to the entitlement termination described in

23 subparagraph (B)(i)(II).

24 ‘‘(ii) In the case of an individual who fails to file a

25 reinstatement request within the period prescribed in
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1 clause (i), the Commissioner may extend the period if the

2 Commissioner determines that the individual had good

3 cause for the failure to so file.

4 ‘‘(2)(A)(i) A request for reinstatement shall be filed

5 in such form, and containing such information, as the

6 Commissioner may prescribe.

7 ‘‘(ii) A request for reinstatement shall include express

8 declarations by the individual that the individual meets the

9 requirements specified in clauses (ii) and (iii) of para10 graph (1)(B).

11 ‘‘(B) A request for reinstatement filed in accordance

12 with subparagraph (A) may constitute an application for

13 benefits in the case of any individual who the Commis14 sioner determines is not entitled to reinstated benefits

15 under this subsection.

16 ‘‘(3) In determining whether an individual meets the

17 requirements of paragraph (1)(B)(ii), the provisions of

18 subsection (f) shall apply.

19 ‘‘(4)(A)(i) Subject to clause (ii), entitlement to bene20 fits reinstated under this subsection shall commence with

21 the benefit payable for the month in which a request for

22 reinstatement is filed.

23 ‘‘(ii) An individual whose entitlement to a benefit for

24 any month would have been reinstated under this sub25 section had the individual filed a request for reinstatement
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1 before the end of such month shall be entitled to such ben2 efit for such month if such request for reinstatement is

3 filed before the end of the twelfth month immediately suc4 ceeding such month.

5 ‘‘(B)(i) Subject to clauses (ii) and (iii), the amount

6 of the benefit payable for any month pursuant to the rein7 statement of entitlement under this subsection shall be de8 termined in accordance with the provisions of this title.

9 ‘‘(ii) For purposes of computing the primary insur10 ance amount of an individual whose entitlement to benefits

11 under this section is reinstated under this subsection, the

12 date of onset of the individual’s disability shall be the date

13 of onset used in determining the individual’s most recent

14 period of disability arising in connection with such benefits

15 payable on the basis of an application.

16 ‘‘(iii) Benefits under this section or section 202 pay17 able for any month pursuant to a request for reinstate18 ment filed in accordance with paragraph (2) shall be re19 duced by the amount of any provisional benefit paid to

20 such individual for such month under paragraph (7).

21 ‘‘(C) No benefit shall be payable pursuant to an enti22 tlement reinstated under this subsection to an individual

23 for any month in which the individual engages in substan24 tial gainful activity.
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1 ‘‘(D) The entitlement of any individual that is rein2 stated under this subsection shall end with the benefits

3 payable for the month preceding whichever of the following

4 months is the earliest:

5 ‘‘(i) The month in which the individual dies.

6 ‘‘(ii) The month in which the individual attains

7 retirement age.

8 ‘‘(iii) The third month following the month in

9 which the individual’s disability ceases.

10 ‘‘(5) Whenever an individual’s entitlement to benefits

11 under this section is reinstated under this subsection, enti12 tlement to benefits payable on the basis of such individ13 ual’s wages and self-employment income may be reinstated

14 with respect to any person previously entitled to such ben15 efits on the basis of an application if the Commissioner

16 determines that such person satisfies all the requirements

17 for entitlement to such benefits except requirements re18 lated to the filing of an application. The provisions of

19 paragraph (4) shall apply to the reinstated entitlement of

20 any such person to the same extent that they apply to

21 the reinstated entitlement of such individual.

22 ‘‘(6) An individual to whom benefits are payable

23 under this section or section 202 pursuant to a reinstate24 ment of entitlement under this subsection for 24 months

25 (whether or not consecutive) shall, with respect to benefits
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1 so payable after such twenty-fourth month, be deemed for

2 purposes of paragraph (1)(B)(i)(I) and the determination,

3 if appropriate, of the termination month in accordance

4 with subsection (a)(1) of this section, or subsection (d)(1),

5 (e)(1), or (f)(1) of section 202, to be entitled to such bene6 fits on the basis of an application filed therefore.

7 ‘‘(7)(A) An individual described in paragraph (1)(B)

8 who files a request for reinstatement in accordance with

9 the provisions of paragraph (2)(A) shall be entitled to pro10 visional benefits payable in accordance with this para11 graph, unless the Commissioner determines that the indi12 vidual does not meet the requirements of paragraph

13 (1)(B)(i) or that the individual’s declaration under para14 graph (2)(A)(ii) is false. Any such determination by the

15 Commissioner shall be final and not subject to review

16 under subsection (b) or (g) of section 205.

17 ‘‘(B) The amount of a provisional benefit for a month

18 shall equal the amount of the last monthly benefit payable

19 to the individual under this title on the basis of an applica20 tion increased by an amount equal to the amount, if any,

21 by which such last monthly benefit would have been in22 creased as a result of the operation of section 215(i).

23 ‘‘(C)(i) Provisional benefits shall begin with the

24 month in which a request for reinstatement is filed in ac25 cordance with paragraph (2)(A).
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1 ‘‘(ii) Provisional benefits shall end with the earliest

2 of—

3 ‘‘(I) the month in which the Commissioner

4 makes a determination regarding the individual’s en5 titlement to reinstated benefits;

6 ‘‘(II) the fifth month following the month de7 scribed in clause (i);

8 ‘‘(III) the month in which the individual per9 forms substantial gainful activity; or

10 ‘‘(IV) the month in which the Commissioner de11 termines that the individual does not meet the re12 quirements of paragraph (1)(B)(i) or that the indi13 vidual’s declaration made in accordance with para14 graph (2)(A)(ii) is false.

15 ‘‘(D) In any case in which the Commissioner deter16 mines that an individual is not entitled to reinstated bene17 fits, any provisional benefits paid to the individual under

18 this paragraph shall not be subject to recovery as an over19 payment unless the Commissioner determines that the in20 dividual knew or should have known that the individual

21 did not meet the requirements of paragraph (1)(B).’’.

22 (b) SSI BENEFITS.—

23 (1) IN GENERAL.—Section 1631 of the Social

24 Security Act (42 U.S.C. 1383) is amended by add25 ing at the end the following:
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1 ‘‘Reinstatement of Eligibility on the Basis of Blindness

2 or Disability

3 ‘‘(p)(1)(A) Eligibility for benefits under this title

4 shall be reinstated in any case where the Commissioner

5 determines that an individual described in subparagraph

6 (B) has filed a request for reinstatement meeting the re7 quirements of paragraph (2)(A) during the period pre8 scribed in subparagraph (C). Reinstatement of eligibility

9 shall be in accordance with the terms of this subsection.

10 ‘‘(B) An individual is described in this subparagraph

11 if—

12 ‘‘(i) prior to the month in which the individual

13 files a request for reinstatement—

14 ‘‘(I) the individual was eligible for benefits

15 under this title on the basis of blindness or dis16 ability pursuant to an application filed there17 fore; and

18 ‘‘(II) the individual thereafter was ineli19 gible for such benefits due to earned income (or

20 earned and unearned income) for a period of 12

21 or more consecutive months;

22 ‘‘(ii) the individual is blind or disabled and the

23 physical or mental impairment that is the basis for

24 the finding of blindness or disability is the same as

25 (or related to) the physical or mental impairment
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1 that was the basis for the finding of blindness or

2 disability that gave rise to the eligibility described in

3 clause (i);

4 ‘‘(iii) the individual’s blindness or disability ren5 ders the individual unable to perform substantial

6 gainful activity; and

7 ‘‘(iv) the individual satisfies the nonmedical re8 quirements for eligibility for benefits under this title.

9 ‘‘(C)(i) Except as provided in clause (ii), the period

10 prescribed in this subparagraph with respect to an indi11 vidual is 60 consecutive months beginning with the month

12 following the most recent month for which the individual

13 was eligible for a benefit under this title (including section

14 1619) prior to the period of ineligibility described in sub15 paragraph (B)(i)(II).

16 ‘‘(ii) In the case of an individual who fails to file a

17 reinstatement request within the period prescribed in

18 clause (i), the Commissioner may extend the period if the

19 Commissioner determines that the individual had good

20 cause for the failure to so file.

21 ‘‘(2)(A)(i) A request for reinstatement shall be filed

22 in such form, and containing such information, as the

23 Commissioner may prescribe.

24 ‘‘(ii) A request for reinstatement shall include express

25 declarations by the individual that the individual meets the
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1 requirements specified in clauses (ii) through (iv) of para2 graph (1)(B).

3 ‘‘(B) A request for reinstatement filed in accordance

4 with subparagraph (A) may constitute an application for

5 benefits in the case of any individual who the Commis6 sioner determines is not eligible for reinstated benefits

7 under this subsection.

8 ‘‘(3) In determining whether an individual meets the

9 requirements of paragraph (1)(B)(ii), the provisions of

10 section 1614(a)(4) shall apply.

11 ‘‘(4)(A) Eligibility for benefits reinstated under this

12 subsection shall commence with the benefit payable for the

13 month following the month in which a request for rein14 statement is filed.

15 ‘‘(B)(i) Subject to clause (ii), the amount of the ben16 efit payable for any month pursuant to the reinstatement

17 of eligibility under this subsection shall be determined in

18 accordance with the provisions of this title.

19 ‘‘(ii) The benefit under this title payable for any

20 month pursuant to a request for reinstatement filed in ac21 cordance with paragraph (2) shall be reduced by the

22 amount of any provisional benefit paid to such individual

23 for such month under paragraph (7).

24 ‘‘(C) Except as otherwise provided in this subsection,

25 eligibility for benefits under this title reinstated pursuant
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1 to a request filed under paragraph (2) shall be subject

2 to the same terms and conditions as eligibility established

3 pursuant to an application filed therefore.

4 ‘‘(5) Whenever an individual’s eligibility for benefits

5 under this title is reinstated under this subsection, eligi6 bility for such benefits shall be reinstated with respect to

7 the individual’s spouse if such spouse was previously an

8 eligible spouse of the individual under this title and the

9 Commissioner determines that such spouse satisfies all the

10 requirements for eligibility for such benefits except re11 quirements related to the filing of an application. The pro12 visions of paragraph (4) shall apply to the reinstated eligi13 bility of the spouse to the same extent that they apply

14 to the reinstated eligibility of such individual.

15 ‘‘(6) An individual to whom benefits are payable

16 under this title pursuant to a reinstatement of eligibility

17 under this subsection for twenty-four months (whether or

18 not consecutive) shall, with respect to benefits so payable

19 after such twenty-fourth month, be deemed for purposes

20 of paragraph (1)(B)(i)(I) to be eligible for such benefits

21 on the basis of an application filed therefore.

22 ‘‘(7)(A) An individual described in paragraph (1)(B)

23 who files a request for reinstatement in accordance with

24 the provisions of paragraph (2)(A) shall be eligible for pro25 visional benefits payable in accordance with this para-
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1 graph, unless the Commissioner determines that the indi2 vidual does not meet the requirements of paragraph

3 (1)(B)(i) or that the individual’s declaration under para4 graph (2)(A)(ii) is false. Any such determination by the

5 Commissioner shall be final and not subject to review

6 under paragraph (1) or (3) of subsection (c).

7 ‘‘(B)(i) Except as otherwise provided in clause (ii),

8 the amount of a provisional benefit for a month shall equal

9 the amount of the monthly benefit that would be payable

10 to an eligible individual under this title with the same kind

11 and amount of income.

12 ‘‘(ii) If the individual has a spouse who was pre13 viously an eligible spouse of the individual under this title

14 and the Commissioner determines that such spouse satis15 fies all the requirements of section 1614(b) except require16 ments related to the filing of an application, the amount

17 of a provisional benefit for a month shall equal the amount

18 of the month benefit that would be payable to an eligible

19 individual and eligible spouse under this title with the

20 same kind and amount of income.

21 ‘‘(C)(i) Provisional benefits shall begin with the

22 month following the month in which a request for rein23 statement is filed in accordance with paragraph (2)(A).

24 ‘‘(ii) Provisional benefits shall end with the earliest

25 of—
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1 ‘‘(I) the month in which the Commissioner

2 makes a determination regarding the individual’s eli3 gibility for reinstated benefits;

4 ‘‘(II) the fifth month following the month for

5 which provisional benefits are first payable under

6 clause (i); or

7 ‘‘(III) the month in which the Commissioner de8 termines that the individual does not meet the re9 quirements of paragraph (1)(B)(i) or that the indi10 vidual’s declaration made in accordance with para11 graph (2)(A)(ii) is false.

12 ‘‘(D) In any case in which the Commissioner deter13 mines that an individual is not eligible for reinstated bene14 fits, any provisional benefits paid to the individual under

15 this paragraph shall not be subject to recovery as an over16 payment unless the Commissioner determines that the in17 dividual knew or should have known that the individual

18 did not meet the requirements of paragraph (1)(B).

19 ‘‘(8) For purposes of this subsection other than para20 graph (7), the term ‘benefits under this title’ includes

21 State supplementary payments made pursuant to an

22 agreement under section 1616(a) or section 212(b) of

23 Public Law 93–66.’’.

24 (2) CONFORMING AMENDMENTS.—
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1 (A) Section 1631(j)(1) of such Act (42

2 U.S.C. 1383(j)(1)) is amended by striking the

3 period and inserting ‘‘, or has filed a request

4 for reinstatement of eligibility under subsection

5 (p)(2) and been determined to be eligible for re6 instatement.’’.

7 (B) Section 1631(j)(2)(A)(i)(I) of such Act

8 (42 U.S.C. 1383(j)(2)(A)(i)(I)) is amended by

9 inserting ‘‘(other than pursuant to a request for

10 reinstatement under subsection (p))’’ after ‘‘eli11 gible’’.

12 (c) EFFECTIVE DATE.—

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

14 this section shall take effect on the first day of the

15 thirteenth month beginning after the date of enact16 ment of this Act.

17 (2) LIMITATION.—No benefit shall be payable

18 under title II or XVI of the Social Security Act on

19 the basis of a request for reinstatement filed under

20 section 223(i) or 1631(p) of such Act before the ef21 fective date described in paragraph (1).
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1 Subtitle C—Work Incentives

2 Planning, Assistance, and Outreach

3 SEC. 221. WORK INCENTIVES OUTREACH PROGRAM.

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

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

6 amended by adding after section 1148 the following:

7 ‘‘WORK INCENTIVES OUTREACH PROGRAM

8 ‘‘SEC. 1149. (a) ESTABLISHMENT.—

9 ‘‘(1) IN GENERAL.—The Commissioner, in con10 sultation with the Work Incentives Advisory Panel

11 established under section 201(f) of the Work Incen12 tives Improvement Act of 1999, shall establish a

13 community-based work incentives planning and as14 sistance program for the purpose of disseminating

15 accurate information to disabled beneficiaries on

16 work incentives programs and issues related to such

17 programs.

18 ‘‘(2) GRANTS, COOPERATIVE AGREEMENTS,

19 CONTRACTS, AND OUTREACH.—Under the program

20 established under this section, the Commissioner

21 shall—

22 ‘‘(A) establish a competitive program of

23 grants, cooperative agreements, or contracts to

24 provide benefits planning and assistance, in25 cluding information on the availability of pro-
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1 tection and advocacy services, to disabled bene2 ficiaries, including individuals participating in

3 the Ticket to Work and Self-Sufficiency Pro4 gram established under section 1148, the pro5 gram established under section 1619, and other

6 programs that are designed to encourage dis7 abled beneficiaries to work;

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

9 cooperative agreements, or contracts, ongoing

10 outreach efforts to disabled beneficiaries (and

11 to the families of such beneficiaries) who are

12 potentially eligible to participate in Federal or

13 State work incentive programs that are de14 signed to assist disabled beneficiaries to work,

15 including—

16 ‘‘(i) preparing and disseminating in17 formation explaining such programs; and

18 ‘‘(ii) working in cooperation with

19 other Federal, State, and private agencies

20 and nonprofit organizations that serve dis21 abled beneficiaries, and with agencies and

22 organizations that focus on vocational re23 habilitation and work-related training and

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

3 within the Social Security Administration who

4 will specialize in disability work incentives

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

7 inquiries and issues relating to work incentives

8 to—

9 ‘‘(i) disabled beneficiaries;

10 ‘‘(ii) benefit applicants under titles II

11 and XVI; and

12 ‘‘(iii) individuals or entities awarded

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

14 and

15 ‘‘(D) provide—

16 ‘‘(i) training for work incentives spe17 cialists and individuals providing planning

18 assistance described in subparagraph (C);

19 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
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1 established under this section shall be coordinated

2 with other public and private programs that provide

3 information and assistance regarding rehabilitation

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

6 program under section 1619, the plans for achieving

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

8 or State work incentives programs that are designed

9 to assist disabled beneficiaries, including educational

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

12 transition services (as defined in, and provided in ac13 cordance with, the Individuals with Disabilities Edu14 cation Act (20 U.S.C. 1400 et seq.)), a one-stop de15 livery system established under subtitle B of title I

16 of the Workforce Investment Act of 1998, and other

17 services.

18 ‘‘(b) CONDITIONS.—

19 ‘‘(1) SELECTION OF ENTITIES.—

20 ‘‘(A) APPLICATION.—An entity shall sub21 mit an application for a grant, cooperative

22 agreement, or contract to provide benefits plan23 ning and assistance to the Commissioner at

24 such time, in such manner, and containing such

25 information as the Commissioner may deter-
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1 mine is necessary to meet the requirements of

2 this section.

3 ‘‘(B) STATEWIDENESS.—The Commis4 sioner shall ensure that the planning, assist5 ance, and information described in paragraph

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

7 ‘‘(C) ELIGIBILITY OF STATES AND PRI8 VATE ORGANIZATIONS.—

9 ‘‘(i) IN GENERAL.—The Commissioner

10 may award a grant, cooperative agreement,

11 or contract under this section to a State or

12 a private agency or organization (other

13 than Social Security Administration Field

14 Offices and the State agency administering

15 the State medicaid program under title

16 XIX, including any agency or entity de17 scribed in clause (ii), that the Commis18 sioner determines is qualified to provide

19 the planning, assistance, and information

20 described in paragraph (2)).

21 ‘‘(ii) AGENCIES AND ENTITIES DE22 SCRIBED.—The agencies and entities de23 scribed in this clause are the following:

24 ‘‘(I) Any public or private agency

25 or organization (including Centers for
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1 Independent Living established under

2 title VII of the Rehabilitation Act of

3 1973, protection and advocacy organi4 zations, client assistance programs es5 tablished in accordance with section

6 112 of the Rehabilitation Act of 1973,

7 and State Developmental Disabilities

8 Councils established in accordance

9 with section 124 of the Developmental

10 Disabilities Assistance and Bill of

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

12 Commissioner determines satisfies the

13 requirements of this section.

14 ‘‘(II) The State agency admin15 istering the State program funded

16 under part A of title IV.

17 ‘‘(D) EXCLUSION FOR CONFLICT OF IN18 TEREST.—The Commissioner may not award a

19 grant, cooperative agreement, or contract under

20 this section to any entity that the Commissioner

21 determines would have a conflict of interest if

22 the entity were to receive a grant, cooperative

23 agreement, or contract under this section.

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

25 grant, cooperative agreement, or contract to provide
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1 benefits planning and assistance shall select individ2 uals who will act as planners and provide informa3 tion, guidance, and planning to disabled beneficiaries

4 on the—

5 ‘‘(A) availability and interrelation of any

6 Federal or State work incentives programs de7 signed to assist disabled beneficiaries that the

8 individual may be eligible to participate in;

9 ‘‘(B) adequacy of any health benefits cov10 erage that may be offered by an employer of

11 the individual and the extent to which other

12 health benefits coverage may be available to the

13 individual; and

14 ‘‘(C) availability of protection and advo15 cacy services for disabled beneficiaries and how

16 to access such services.

17 ‘‘(3) AMOUNT OF GRANTS, COOPERATIVE

18 AGREEMENTS, OR CONTRACTS.—

19 ‘‘(A) BASED ON POPULATION OF DIS20 ABLED BENEFICIARIES.—Subject to subpara21 graph (B), the Commissioner shall award a

22 grant, cooperative agreement, or contract under

23 this section to an entity based on the percent24 age of the population of the State where the en25 tity is located who are disabled beneficiaries.
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1 ‘‘(B) LIMITATIONS.—

2 ‘‘(i) PER GRANT.—No entity shall re3 ceive a grant, cooperative agreement, or

4 contract under this section for a fiscal year

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

6 $300,000.

7 ‘‘(ii) TOTAL AMOUNT FOR ALL

8 GRANTS, COOPERATIVE AGREEMENTS, AND

9 CONTRACTS.—The total amount of all

10 grants, cooperative agreements, and con11 tracts awarded under this section for a fis12 cal year may not exceed $23,000,000.

13 ‘‘(4) ALLOCATION OF COSTS.—The costs of car14 rying out this section shall be paid from amounts

15 made available for the administration of title II and

16 amounts made available for the administration of

17 title XVI, and shall be allocated among those

18 amounts as appropriate.

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

20 ‘‘(1) COMMISSIONER.—The term ‘Commis21 sioner’ means the Commissioner of Social Security.

22 ‘‘(2) DISABLED BENEFICIARY.—The term ‘dis23 abled beneficiary’ has the meaning given that term

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

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

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

5 amended by adding after section 1149 the following:

6 ‘‘STATE GRANTS FOR WORK INCENTIVES ASSISTANCE TO

7 DISABLED BENEFICIARIES

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

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

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

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

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

15 ‘‘(b) SERVICES PROVIDED.—Services provided to dis16 abled beneficiaries pursuant to a payment made under this

17 section may include—

18 ‘‘(1) information and advice about obtaining vo19 cational rehabilitation and employment services; and

20 ‘‘(2) advocacy or other services that a disabled

21 beneficiary may need to secure or regain gainful em22 ployment.

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

24 under this section, a protection and advocacy system shall

25 submit an application to the Commissioner, at such time,
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1 in such form and manner, and accompanied by such infor2 mation and assurances as the Commissioner may require.

3 ‘‘(d) AMOUNT OF PAYMENTS.—

4 ‘‘(1) IN GENERAL.—Subject to the amount ap5 propriated for a fiscal year for making payments

6 under this section, a protection and advocacy system

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

8 ‘‘(A) in the case of a protection and advo9 cacy system located in a State (including the

10 District of Columbia and Puerto Rico) other

11 than Guam, American Samoa, the United

12 States Virgin Islands, and the Commonwealth

13 of the Northern Mariana Islands, the greater

14 of—

15 ‘‘(i) $100,000; or

‘‘(ii) 1 16 ⁄3 of 1 percent of the amount

17 available for payments under this section;

18 and

19 ‘‘(B) in the case of a protection and advo20 cacy system located in Guam, American Samoa,

21 the United States Virgin Islands, and the Com22 monwealth of the Northern Mariana Islands,

23 $50,000.

24 ‘‘(2) INFLATION ADJUSTMENT.—For each fiscal

25 year in which the total amount appropriated to carry
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1 out this section exceeds the total amount appro2 priated to carry out this section in the preceding fis3 cal year, the Commissioner shall increase each min4 imum payment under subparagraphs (A) and (B) of

5 paragraph (1) by a percentage equal to the percent6 age increase in the total amount appropriated to

7 carry out this section between the preceding fiscal

8 year and the fiscal year involved.

9 ‘‘(e) ANNUAL REPORT.—Each protection and advo10 cacy system that receives a payment under this section

11 shall submit an annual report to the Commissioner and

12 the Work Incentives Advisory Panel established under sec13 tion 201(f) of the Work Incentives Improvement Act of

14 1999 on the services provided to individuals by the system.

15 ‘‘(f) FUNDING.—

16 ‘‘(1) ALLOCATION OF PAYMENTS.—

17 ‘‘(A) IN GENERAL.—Subject to subpara18 graph (B), payments under this section shall be

19 made from amounts made available for the ad20 ministration of title II and amounts made avail21 able for the administration of title XVI, and

22 shall be allocated among those amounts as ap23 propriate.

24 ‘‘(B) LIMITATION.—Payments under this

25 section shall not exceed $7,000,000 for fiscal
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1 year 2000, and such sums as may be necessary

2 for any fiscal year thereafter.

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

4 payment to a protection and advocacy system under

5 this section for a fiscal year shall remain available

6 for payment to or on behalf of the protection and

7 advocacy system until the end of the succeeding fis8 cal year.

9 ‘‘(g) DEFINITIONS.—In this section:

10 ‘‘(1) COMMISSIONER.—The term ‘Commis11 sioner’ means the Commissioner of Social Security.

12 ‘‘(2) DISABLED BENEFICIARY.—The term ‘dis13 abled beneficiary’ has the meaning given that term

14 in section 1148(k)(2).

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

16 The term ‘protection and advocacy system’ means a

17 protection and advocacy system established pursuant

18 to part C of title I of the Developmental Disabilities

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

20 et seq.).’’.
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1 TITLE III—DEMONSTRATION

2 PROJECTS AND STUDIES

3 SEC. 301. PERMANENT EXTENSION OF DISABILITY INSUR4 ANCE PROGRAM DEMONSTRATION PROJECT

5 AUTHORITY.

6 (a) PERMANENT EXTENSION OF AUTHORITY.—Title

7 II of the Social Security Act (42 U.S.C. 401 et seq.) is

8 amended by adding at the end the following:

9 ‘‘DEMONSTRATION PROJECT AUTHORITY

10 ‘‘SEC. 234. (a) AUTHORITY.—

11 ‘‘(1) IN GENERAL.—The Commissioner of So12 cial Security (in this section referred to as the ‘Com13 missioner’) shall develop and carry out experiments

14 and demonstration projects designed to determine

15 the relative advantages and disadvantages of—

16 ‘‘(A) various alternative methods of treat17 ing the work activity of individuals entitled to

18 disability insurance benefits under section 223

19 or to monthly insurance benefits under section

20 202 based on such individual’s disability (as de21 fined in section 223(d)), including such meth22 ods as a reduction in benefits based on earn23 ings, designed to encourage the return to work

24 of such individuals;
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1 ‘‘(B) altering other limitations and condi2 tions applicable to such individuals (including

3 lengthening the trial work period (as defined in

4 section 222(c)), altering the 24-month waiting

5 period for hospital insurance benefits under sec6 tion 226, altering the manner in which the pro7 gram under this title is administered, earlier re8 ferral of such individuals for rehabilitation, and

9 greater use of employers and others to develop,

10 perform, and otherwise stimulate new forms of

11 rehabilitation); and

12 ‘‘(C) implementing sliding scale benefit off13 sets using variations in—

14 ‘‘(i) the amount of the offset as a pro15 portion of earned income;

16 ‘‘(ii) the duration of the offset period;

17 and

18 ‘‘(iii) the method of determining the

19 amount of income earned by such individ20 uals,

21 to the end that savings will accrue to the Trust

22 Funds, or to otherwise promote the objectives or fa23 cilitate the administration of this title.

24 ‘‘(2) AUTHORITY FOR EXPANSION OF SCOPE.—

25 The Commissioner may expand the scope of any
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1 such experiment or demonstration project to include

2 any group of applicants for benefits under the pro3 gram established under this title with impairments

4 that reasonably may be presumed to be disabling for

5 purposes of such demonstration project, and may

6 limit any such demonstration project to any such

7 group of applicants, subject to the terms of such

8 demonstration project which shall define the extent

9 of any such presumption.

10 ‘‘(b) REQUIREMENTS.—The experiments and dem11 onstration projects developed under subsection (a) shall be

12 of sufficient scope and shall be carried out on a wide

13 enough scale to permit a thorough evaluation of the alter14 native methods under consideration while giving assurance

15 that the results derived from the experiments and projects

16 will obtain generally in the operation of the disability in17 surance program under this title without committing such

18 program to the adoption of any particular system either

19 locally or nationally.

20 ‘‘(c) AUTHORITY TO WAIVE COMPLIANCE WITH

21 BENEFITS REQUIREMENTS.—In the case of any experi22 ment or demonstration project conducted under subsection

23 (a), the Commissioner may waive compliance with the ben24 efit requirements of this title, and the Secretary may

25 (upon the request of the Commissioner) waive compliance
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1 with the benefits requirements of title XVIII, insofar as

2 is necessary for a thorough evaluation of the alternative

3 methods under consideration. No such experiment or

4 project shall be actually placed in operation unless at least

5 90 days prior thereto a written report, prepared for pur6 poses of notification and information only and containing

7 a full and complete description thereof, has been trans8 mitted by the Commissioner to the Committee on Ways

9 and Means of the House of Representatives and to the

10 Committee on Finance of the Senate. Periodic reports on

11 the progress of such experiments and demonstration

12 projects shall be submitted by the Commissioner to such

13 committees. When appropriate, such reports shall include

14 detailed recommendations for changes in administration

15 or law, or both, to carry out the objectives stated in sub16 section (a).

17 ‘‘(d) REPORTS.—

18 ‘‘(1) INTERIM REPORTS.—On or before June 9

19 of each year, the Commissioner shall submit to the

20 Committee on Ways and Means of the House of

21 Representatives and to the Committee on Finance of

22 the Senate an interim report on the progress of the

23 experiments and demonstration projects carried out

24 under this subsection together with any related data
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1 and materials that the Commissioner may consider

2 appropriate.

3 ‘‘(2) FINAL REPORTS.—Not later than 90 days

4 after the termination of any experiment or dem5 onstration project carried out under this section, the

6 Commissioner shall submit to the Committee on

7 Ways and Means of the House of Representatives

8 and to the Committee on Finance of the Senate a

9 final report with respect to that experiment and

10 demonstration project.’’.

11 (b) CONFORMING AMENDMENTS; TRANSFER OF

12 PRIOR AUTHORITY.—

13 (1) CONFORMING AMENDMENTS.—

14 (A) REPEAL OF PRIOR AUTHORITY.—Para15 graphs (1) through (4) of subsection (a) and

16 subsection (c) of section 505 of the Social Secu17 rity Disability Amendments of 1980 (42 U.S.C.

18 1310 note) are repealed.

19 (B) CONFORMING AMENDMENT REGARD20 ING FUNDING.—Section 201(k) of the Social

21 Security Act (42 U.S.C. 401(k)) is amended by

22 striking ‘‘section 505(a) of the Social Security

23 Disability Amendments of 1980’’ and inserting

24 ‘‘section 234’’.
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1 (2) TRANSFER OF PRIOR AUTHORITY.—With

2 respect to any experiment or demonstration project

3 being conducted under section 505(a) of the Social

4 Security Disability Amendments of 1980 (42 U.S.C.

5 1310 note) as of the date of enactment of this Act,

6 the authority to conduct such experiment or dem7 onstration project (including the terms and condi8 tions applicable to the experiment or demonstration

9 project) shall be treated as if that authority (and

10 such terms and conditions) had been established

11 under section 234 of the Social Security Act, as

12 added by subsection (a).

13 SEC. 302. DEMONSTRATION PROJECTS PROVIDING FOR RE14 DUCTIONS IN DISABILITY INSURANCE BENE15 FITS BASED ON EARNINGS.

16 (a) AUTHORITY.—The Commissioner of Social Secu17 rity shall conduct demonstration projects for the purpose

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

19 for title II disability beneficiaries (as defined in section

20 1148(k)(3) of the Social Security Act) under which each

21 $1 of benefits payable under section 223, or under section

22 202 based on the beneficiary’s disability, is reduced for

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

24 to be determined by the Commissioner. Such projects shall

25 be conducted at a number of localities which the Commis-
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1 sioner shall determine is sufficient to adequately evaluate

2 the appropriateness of national implementation of such a

3 program. Such projects shall identify reductions in Fed4 eral expenditures that may result from the permanent im5 plementation of such a program.

6 (b) SCOPE AND SCALE AND MATTERS TO BE DETER7 MINED.—

8 (1) IN GENERAL.—The demonstration projects

9 developed under subsection (a) shall be of sufficient

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

11 carried out on a wide enough scale to permit a thor12 ough evaluation of the project to determine—

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

14 into the project and reduced exit from the

15 project;

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

17 being tested is affected by whether it is in oper18 ation in a locality within an area under the ad19 ministration of the Ticket to Work and Self20 Sufficiency Program established under section

21 1148 of the Social Security Act; and

22 (C) the savings that accrue to the Federal

23 Old-Age and Survivors Insurance Trust Fund,

24 the Federal Disability Insurance Trust Fund,
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1 and other Federal programs under the project

2 being tested.

3 The Commissioner shall take into account advice

4 provided by the Work Incentives Advisory Panel pur5 suant to section 201(f)(2)(B)(ii).

6 (2) ADDITIONAL MATTERS.—The Commissioner

7 shall also determine with respect to each project—

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

9 the project and the annual cost (including net

10 cost) that would have been incurred in the ab11 sence of the project;

12 (B) the determinants of return to work, in13 cluding the characteristics of the beneficiaries

14 who participate in the project; and

15 (C) the employment outcomes, including

16 wages, occupations, benefits, and hours worked,

17 of beneficiaries who return to work as a result

18 of participation in the project.

19 The Commissioner may include within the matters

20 evaluated under the project the merits of trial work

21 periods and periods of extended eligibility.

22 (c) WAIVERS.—The Commissioner may waive compli23 ance with the benefit provisions of title II of the Social

24 Security Act, and the Secretary of Health and Human

25 Services may waive compliance with the benefit require-
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1 ments of title XVIII of that Act, insofar as is necessary

2 for a thorough evaluation of the alternative methods under

3 consideration. No such project shall be actually placed in

4 operation unless at least 90 days prior thereto a written

5 report, prepared for purposes of notification and informa6 tion only and containing a full and complete description

7 thereof, has been transmitted by the Commissioner to the

8 Committee on Ways and Means of the House of Rep9 resentatives and to the Committee on Finance of the Sen10 ate. Periodic reports on the progress of such projects shall

11 be submitted by the Commissioner to such committees.

12 When appropriate, such reports shall include detailed rec13 ommendations for changes in administration or law, or

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

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

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

17 the Commissioner of Social Security shall submit to Con18 gress an interim report on the progress of the demonstra19 tion projects carried out under this subsection together

20 with any related data and materials that the Commis21 sioner of Social Security may consider appropriate.

22 (e) FINAL REPORT.—The Commissioner of Social Se23 curity shall submit to Congress a final report with respect

24 to all demonstration projects carried out under this section

25 not later than 1 year after their completion.
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1 (f) EXPENDITURES.—Expenditures made for dem2 onstration projects under this section shall be made from

3 the Federal Disability Insurance Trust Fund and the Fed4 eral Old-Age and Survivors Insurance Trust Fund, as de5 termined appropriate by the Commissioner of Social Secu6 rity, and from the Federal Hospital Insurance Trust Fund

7 and the Federal Supplementary Medical Insurance Trust

8 Fund, as determined appropriate by the Secretary of

9 Health and Human Services, to the extent provided in ad10 vance in appropriation Acts.

11 SEC. 303. STUDIES AND REPORTS.

12 (a) STUDY BY GENERAL ACCOUNTING OFFICE OF

13 EXISTING DISABILITY-RELATED EMPLOYMENT INCEN14 TIVES.—

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

16 date of enactment of this Act, the Comptroller Gen17 eral of the United States shall undertake a study to

18 assess existing tax credits and other disability-re19 lated employment incentives under the Americans

20 with Disabilities Act of 1990 and other Federal

21 laws. In such study, the Comptroller General shall

22 specifically address the extent to which such credits

23 and other incentives would encourage employers to

24 hire and retain individuals with disabilities.
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1 (2) REPORT.—Not later than 3 years after the

2 date of enactment of this Act, the Comptroller Gen3 eral shall transmit to the Committee on Ways and

4 Means of the House of Representatives and the

5 Committee on Finance of the Senate a written re6 port presenting the results of the Comptroller Gen7 eral’s study conducted pursuant to this subsection,

8 together with such recommendations for legislative

9 or administrative changes as the Comptroller Gen10 eral determines are appropriate.

11 (b) STUDY BY GENERAL ACCOUNTING OFFICE OF

12 EXISTING COORDINATION OF THE DI AND SSI PROGRAMS

13 AS THEY RELATE TO INDIVIDUALS ENTERING OR LEAV14 ING CONCURRENT ENTITLEMENT.—

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

16 date of enactment of this Act, the Comptroller Gen17 eral of the United States shall undertake a study to

18 evaluate the coordination under current law of the

19 disability insurance program under title II of the So20 cial Security Act and the supplemental security in21 come program under title XVI of that Act, as such

22 programs relate to individuals entering or leaving

23 concurrent entitlement under such programs. In

24 such study, the Comptroller General shall specifically

25 address the effectiveness of work incentives under
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1 such programs with respect to such individuals and

2 the effectiveness of coverage of such individuals

3 under titles XVIII and XIX of the Social Security

4 Act.

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 (c) STUDY BY GENERAL ACCOUNTING OFFICE OF

16 THE IMPACT OF THE SUBSTANTIAL GAINFUL ACTIVITY

17 LIMIT ON RETURN TO WORK.—

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

19 date of enactment of this Act, the Comptroller Gen20 eral of the United States shall undertake a study of

21 the substantial gainful activity level applicable as of

22 that date to recipients of benefits under section 223

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

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

25 the basis of a recipient having a disability, and the
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1 effect of such level as a disincentive for those recipi2 ents to return to work. In the study, the Comptroller

3 General also shall address the merits of increasing

4 the substantial gainful activity level applicable to

5 such recipients of benefits and the rationale for not

6 yearly indexing that level to inflation.

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

8 date of enactment of this Act, the Comptroller Gen9 eral shall transmit to the Committee on Ways and

10 Means of the House of Representatives and the

11 Committee on Finance of the Senate a written re12 port presenting the results of the Comptroller Gen13 eral’s study conducted pursuant to this subsection,

14 together with such recommendations for legislative

15 or administrative changes as the Comptroller Gen16 eral determines are appropriate.

17 (d) REPORT ON DISREGARDS UNDER THE DI AND

18 SSI PROGRAMS.—Not later than 90 days after the date

19 of enactment of this Act, the Commissioner of Social Secu20 rity shall submit to the Committee on Ways and Means

21 of the House of Representatives and the Committee on

22 Finance of the Senate a report that—

23 (1) identifies all income, assets, and resource

24 disregards (imposed under statutory or regulatory

25 authority) that are applicable to individuals receiving
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1 benefits under title II or XVI of the Social Security

2 Act (42 U.S.C. 401 et seq., 1381 et seq.);

3 (2) with respect to each such disregard—

4 (A) specifies the most recent statutory or

5 regulatory modification of the disregard; and

6 (B) recommends whether further statutory

7 or regulatory modification of the disregard

8 would be appropriate; and

9 (3) with respect to the disregard described in

10 section 1612(b)(7) of the Social Security Act (42

11 U.S.C. 1382a(b)(7)) (relating to grants, scholar12 ships, or fellowships received for use in paying the

13 cost of tuition and fees at any educational (including

14 technical or vocational education) institution)—

15 (A) identifies the number of individuals re16 ceiving benefits under title XVI of such Act (42

17 U.S.C. 1381 et seq.) who have attained age 22

18 and have not had any portion of any grant,

19 scholarship, or fellowship received for use in

20 paying the cost of tuition and fees at any edu21 cational (including technical or vocational edu22 cation) institution excluded from their income

23 in accordance with that section;

24 (B) recommends whether the age at which

25 such grants, scholarships, or fellowships are ex-
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1 cluded from income for purposes of determining

2 eligibility under title XVI of the Social Security

3 Act should be increased to age 25; and

4 (C) recommends whether such disregard

5 should be expanded to include any such grant,

6 scholarship, or fellowship received for use in

7 paying the cost of room and board at any such

8 institution.

9 TITLE IV—TECHNICAL

10 AMENDMENTS

11 SEC. 401. TECHNICAL AMENDMENTS RELATING TO DRUG

12 ADDICTS AND ALCOHOLICS.

13 (a) CLARIFICATION RELATING TO THE EFFECTIVE

14 DATE OF THE DENIAL OF SOCIAL SECURITY DISABILITY

15 BENEFITS TO DRUG ADDICTS AND ALCOHOLICS.—Sec16 tion 105(a)(5) of the Contract with America Advancement

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

18 amended—

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

20 Commissioner of Social Security’’ and ‘‘by the Com21 missioner’’; and

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

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

24 individual’s claim, with respect to benefits

25 under title II of the Social Security Act based
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1 on disability, which has been denied in whole

2 before the date of enactment of this Act, may

3 not be considered to be finally adjudicated be4 fore such date if, on or after such date—

5 ‘‘(i) there is pending a request for ei6 ther administrative or judicial review with

7 respect to such claim, or

8 ‘‘(ii) there is pending, with respect to

9 such claim, a readjudication by the Com10 missioner of Social Security pursuant to

11 relief in a class action or implementation

12 by the Commissioner of a court remand

13 order.

14 ‘‘(E) Notwithstanding the provisions of

15 this paragraph, with respect to any individual

16 for whom the Commissioner of Social Security

17 does not perform the entitlement redetermina18 tion before the date prescribed in subparagraph

19 (C), the Commissioner shall perform such enti20 tlement redetermination in lieu of a continuing

21 disability review whenever the Commissioner de22 termines that the individual’s entitlement is

23 subject to redetermination based on the pre24 ceding provisions of this paragraph, and the

25 provisions of section 223(f) of the Social Secu-
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1 rity Act shall not apply to such redetermina2 tion.’’.

3 (b) CORRECTION TO EFFECTIVE DATE OF PROVI4 SIONS CONCERNING REPRESENTATIVE PAYEES AND

5 TREATMENT REFERRALS OF SOCIAL SECURITY BENE6 FICIARIES WHO ARE DRUG ADDICTS AND ALCOHOLICS.—

7 Section 105(a)(5)(B) of the Contract with America Ad8 vancement Act of 1996 (42 U.S.C. 405 note) is amended

9 to read as follows:

10 ‘‘(B) The amendments made by para11 graphs (2) and (3) shall take effect on July 1,

12 1996, with respect to any individual—

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

14 adjudicated on or after the date of enact15 ment of this Act; or

16 ‘‘(ii) whose entitlement to benefits is

17 based on an entitlement redetermination

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

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

20 this section shall take effect as if included in the enact21 ment of section 105 of the Contract with America Ad22 vancement Act of 1996 (Public Law 104–121; 110 Stat.

23 852 et seq.).
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1 SEC. 402. TREATMENT OF PRISONERS.

2 (a) IMPLEMENTATION OF PROHIBITION AGAINST

3 PAYMENT OF TITLE II BENEFITS TO PRISONERS.—

4 (1) IN GENERAL.—Section 202(x)(3) of the So5 cial Security Act (42 U.S.C. 402(x)(3)) is

6 amended—

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

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

9 ‘‘(B)(i) The Commissioner shall enter into an agree10 ment under this subparagraph with any interested State

11 or local institution comprising a jail, prison, penal institu12 tion, or correctional facility, or comprising any other insti13 tution a purpose of which is to confine individuals as de14 scribed in paragraph (1)(A)(ii). Under such agreement—

15 ‘‘(I) the institution shall provide to the Com16 missioner, on a monthly basis and in a manner spec17 ified by the Commissioner, the names, Social Secu18 rity account numbers, dates of birth, confinement

19 commencement dates, and, to the extent available to

20 the institution, such other identifying information

21 concerning the individuals confined in the institution

22 as the Commissioner may require for the purpose of

23 carrying out paragraph (1); and

24 ‘‘(II) the Commissioner shall pay to the institu25 tion, with respect to information described in sub26 clause (I) concerning each individual who is confined
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1 therein as described in paragraph (1)(A), who re2 ceives a benefit under this title for the month pre3 ceding the first month of such confinement, and

4 whose benefit under this title is determined by the

5 Commissioner to be not payable by reason of con6 finement based on the information provided by the

7 institution, $400 (subject to reduction under clause

8 (ii)) if the institution furnishes the information to

9 the Commissioner within 30 days after the date such

10 individual’s confinement in such institution begins,

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

12 the institution furnishes the information after 30

13 days after such date but within 90 days after such

14 date.

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

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

17 required to make a payment to the institution with respect

18 to the same individual under an agreement entered into

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

20 ‘‘(iii) There is authorized to be transferred from the

21 Federal Old-Age and Survivors Insurance Trust Fund and

22 the Federal Disability Insurance Trust Fund, as appro23 priate, such sums as may be necessary to enable the Com24 missioner to make payments to institutions required by

25 clause (i)(II).
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1 ‘‘(iv) The Commissioner is authorized to provide, on

2 a reimbursable basis, information obtained pursuant to

3 agreements entered into under clause (i) to any agency

4 administering a Federal or federally assisted cash, food,

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

6 (2) CONFORMING AMENDMENT TO THE PRI7 VACY ACT.—Section 552a(a)(8)(B) of title 5, United

8 States Code, is amended—

9 (A) in clause (vi), by striking ‘‘or’’ at the

10 end;

11 (B) in clause (vii), by adding ‘‘or’’ at the

12 end; and

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

14 ‘‘(viii) matches performed pursuant to

15 section 202(x)(3)(B) or 1611(e)(1)(I) of

16 the Social Security Act (42 U.S.C.

17 402(x)(3)(B), 1382(e)(1)(I));’’.

18 (3) EFFECTIVE DATE.—The amendments made

19 by this subsection shall apply to individuals whose

20 period of confinement in an institution commences

21 on or after the first day of the fourth month begin22 ning after the month in which this Act is enacted.

23 (b) ELIMINATION OF TITLE II REQUIREMENT THAT

24 CONFINEMENT STEM FROM CRIME PUNISHABLE BY IM25 PRISONMENT FOR MORE THAN 1 YEAR.—
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1 (1) IN GENERAL.—Section 202(x)(1)(A) of the

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

3 amended—

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

5 striking ‘‘during’’ and inserting ‘‘throughout’’;

6 (B) in clause (i), by striking ‘‘an offense

7 punishable by imprisonment for more than 1

8 year (regardless of the actual sentence im9 posed)’’ and inserting ‘‘a criminal offense’’; and

10 (C) in clause (ii)(I), by striking ‘‘an of11 fense punishable by imprisonment for more

12 than 1 year’’ and inserting ‘‘a criminal of13 fense’’.

14 (2) EFFECTIVE DATE.—The amendments made

15 by this subsection shall apply to individuals whose

16 period of confinement in an institution commences

17 on or after the first day of the fourth month begin18 ning after the month in which this Act is enacted.

19 (c) CONFORMING TITLE XVI AMENDMENTS.—

20 (1) FIFTY PERCENT REDUCTION IN TITLE XVI

21 PAYMENT IN CASE INVOLVING COMPARABLE TITLE II

22 PAYMENT.—Section 1611(e)(1)(I) of the Social Se23 curity Act (42 U.S.C. 1382(e)(1)(I)) is amended—
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1 (A) in clause (i)(II), by inserting ‘‘(subject

2 to reduction under clause (ii))’’ after ‘‘$400’’

3 and after ‘‘$200’’;

4 (B) by redesignating clauses (ii) and (iii)

5 as clauses (iii) and (iv), respectively; and

6 (C) by inserting after clause (i) the fol7 lowing:

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 202(x)(3)(B).’’.

13 (2) EXPANSION OF CATEGORIES OF INSTITU14 TIONS ELIGIBLE TO ENTER INTO AGREEMENTS WITH

15 THE COMMISSIONER.—Section 1611(e)(1)(I)(i) of

16 the Social Security Act (42 U.S.C. 1382(e)(1)(I)(i))

17 is amended in the matter preceding subclause (I) by

18 striking ‘‘institution’’ and all that follows through

19 ‘‘section 202(x)(1)(A),’’ and inserting ‘‘institution

20 comprising a jail, prison, penal institution, or correc21 tional facility, or with any other interested State or

22 local institution a purpose of which is to confine in23 dividuals as described in section 202(x)(1)(A)(ii),’’.

24 (3) ELIMINATION OF OVERLY BROAD EXEMP25 TION.—Section 1611(e)(1)(I)(iii) of such Act (42
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1 U.S.C. 1382(e)(1)(I)(iii)) (as redesignated by para2 graph (1)(B), is amended by striking ‘‘(I) The provi3 sions’’ and all that follows through ‘‘(II)’’.

4 (4) EFFECTIVE DATE.—The amendments made

5 by this subsection shall take effect as if included in

6 the enactment of section 203(a) of the Personal Re7 sponsibility and Work Opportunity Reconciliation

8 Act of 1996 (Public Law 104–193; 110 Stat. 2186).

9 The reference to section 202(x)(1)(A)(ii) of the So10 cial Security Act in section 1611(e)(1)(I)(i) of the

11 Social Security Act as amended by paragraph (2)

12 shall be deemed a reference to such section

13 202(x)(1)(A)(ii) as amended by subsection (b)(1)(C).

14 (d) CONTINUED DENIAL OF BENEFITS TO SEX OF15 FENDERS REMAINING CONFINED TO PUBLIC INSTITU16 TIONS UPON COMPLETION OF PRISON TERM.—

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

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

19 amended—

20 (A) in clause (i), by striking ‘‘or’’ at the

21 end;

22 (B) in clause (ii)(IV), by striking the pe23 riod and inserting ‘‘, or’’; and

24 (C) by adding at the end the following:
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1 ‘‘(iii) immediately upon completion of confine2 ment as described in clause (i) pursuant to convic3 tion of a criminal offense an element of which is sex4 ual activity, is confined by court order in an institu5 tion at public expense pursuant to a finding that the

6 individual is a sexually dangerous person or a sexual

7 predator or a similar finding.’’.

8 (2) CONFORMING AMENDMENT.—Section

9 202(x)(1)(B)(ii) of the Social Security Act (42

10 U.S.C. 402(x)(1)(B)(ii)) is amended by striking

11 ‘‘clause (ii)’’ and inserting ‘‘clauses (ii) and (iii)’’.

12 (3) EFFECTIVE DATE.—The amendments made

13 by this subsection shall apply with respect to bene14 fits for months ending after the date of enactment

15 of this Act.

16 SEC 403. REVOCATION BY MEMBERS OF THE CLERGY OF

17 EXEMPTION FROM SOCIAL SECURITY COV18 ERAGE.

19 (a) IN GENERAL.—Notwithstanding section

20 1402(e)(4) of the Internal Revenue Code of 1986, any ex21 emption which has been received under section 1402(e)(1)

22 of such Code by a duly ordained, commissioned, or li23 censed minister of a church, a member of a religious order,

24 or a Christian Science practitioner, and which is effective

25 for the taxable year in which this Act is enacted, may be
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1 revoked by filing an application therefore (in such form

2 and manner, and with such official, as may be prescribed

3 by the Commissioner of the Internal Revenue Service), if

4 such application is filed no later than the due date of the

5 Federal income tax return (including any extension there6 of) for the applicant’s second taxable year beginning after

7 December 31, 1999. Any such revocation shall be effective

8 (for purposes of chapter 2 of the Internal Revenue Code

9 of 1986 and title II of the Social Security Act), as speci10 fied in the application, either with respect to the appli11 cant’s first taxable year beginning after December 31,

12 1999, or with respect to the applicant’s second taxable

13 year beginning after such date, and for all succeeding tax14 able years; and the applicant for any such revocation may

15 not thereafter again file application for an exemption

16 under such section 1402(e)(1). If the application is filed

17 after the due date of the applicant’s Federal income tax

18 return for a taxable year and is effective with respect to

19 that taxable year, it shall include or be accompanied by

20 payment in full of an amount equal to the total of the

21 taxes that would have been imposed by section 1401 of

22 the Internal Revenue Code of 1986 with respect to all of

23 the applicant’s income derived in that taxable year which

24 would have constituted net earnings from self-employment

25 for purposes of chapter 2 of such Code (notwithstanding
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1 paragraph (4) or (5) of section 1402(c) of such Code) ex2 cept for the exemption under section 1402(e)(1) of such

3 Code.

4 (b) EFFECTIVE DATE.—Subsection (a) shall apply

5 with respect to service performed (to the extent specified

6 in such subsection) in taxable years beginning after De7 cember 31, 1999, and with respect to monthly insurance

8 benefits payable under title II of the Social Security Act

9 on the basis of the wages and self-employment income of

10 any individual for months in or after the calendar year

11 in which such individual’s application for revocation (as

12 described in such subsection) is effective (and lump-sum

13 death payments payable under such title on the basis of

14 such wages and self-employment income in the case of

15 deaths occurring in or after such calendar year).

16 SEC. 404. ADDITIONAL TECHNICAL AMENDMENT RELATING

17 TO COOPERATIVE RESEARCH OR DEM18 ONSTRATION PROJECTS UNDER TITLES II

19 AND XVI.

20 (a) IN GENERAL.—Section 1110(a)(3) of the Social

21 Security Act (42 U.S.C. 1310(a)(3)) is amended by strik22 ing ‘‘title XVI’’ and inserting ‘‘title II or XVI’’.

23 (b) EFFECTIVE DATE.—The amendment made by

24 subsection (a) shall take effect as if included in the enact25 ment of the Social Security Independence and Program
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1 Improvements Act of 1994 (Public Law 103–296; 108

2 Stat. 1464).

3 SEC. 405. AUTHORIZATION FOR STATE TO PERMIT ANNUAL

4 WAGE REPORTS.

5 (a) IN GENERAL.—Section 1137(a)(3) of the Social

6 Security Act (42 U.S.C. 1320b–7(a)(3)) is amended by

7 inserting before the semicolon the following: ‘‘, and except

8 that in the case of wage reports with respect to domestic

9 service employment, a State may permit employers (as so

10 defined) that make returns with respect to such employ11 ment on a calendar year basis pursuant to section 3510

12 of the Internal Revenue Code of 1986 to make such re13 ports on an annual basis’’.

14 (b) TECHNICAL AMENDMENTS.—Section 1137(a)(3)

15 of the Social Security Act (42 U.S.C. 1320b–7(a)(3)) is

16 amended—

17 (1) by striking ‘‘(as defined in section

18 453A(a)(2)(B)(iii))’’; and

19 (2) by inserting ‘‘(as defined in section

20 453A(a)(2)(B))’’ after ‘‘employers’’ .

21 (c) EFFECTIVE DATE.—The amendments made by

22 this section shall apply to wage reports required to be sub23 mitted on and after the date of enactment of this Act.

Æ