‘‘(2) DISABLED BENEFICIARY.—The term ‘dis-
abled beneficiary’ means a title II disability bene-
ficiary or a title XVI disability beneficiary.
‘‘(3) TITLE II DISABILITY BENEFICIARY.—The
term ‘title II disability beneficiary’ means an indi-
vidual entitled to disability insurance benefits under
section 223 or to monthly insurance benefits under
section 202 based on such individual’s disability (as
defined in section 223(d)). An individual is a title II
disability beneficiary for each month for which such
individual is entitled to such benefits.
‘‘(4) TITLE
XVI
DISABILITY
BENEFICIARY.—
The term ‘title XVI disability beneficiary’ means an
individual eligible for supplemental security income
benefits under title XVI on the basis of blindness
(within the meaning of section 1614(a)(2)) or dis-
ability (within the meaning of section 1614(a)(3)).
An individual is a title XVI disability beneficiary for
each month for which such individual is eligible for
such benefits.
‘‘(5) SUPPLEMENTAL SECURITY INCOME BEN-
EFIT UNDER TITLE XVI.—The term ‘supplemental
security income benefit under title XVI’ means a
cash benefit under section 1611 or 1619(a), and
does not include a State supplementary payment,
administered federally or otherwise.
‘‘(l) REGULATIONS.—Not later than 1 year after the
date of enactment of this section, the Commissioner shall
prescribe such regulations as are necessary to carry out
the provisions of this section.
‘‘(m) REAUTHORIZATION OF PROGRAM.—
‘‘(1) IN GENERAL.—The Program established
under this section shall terminate on the date that
is 5 years after the date that the Commissioner com-
mences implementation of the Program.
‘‘(2) ASSURANCE OF OUTCOME PAYMENT PE-
RIOD.—Notwithstanding paragraph (1)—
‘‘(A) any individual who has initiated a
work plan in accordance with subsection (g)
may use services provided under the Program
in accordance with this section; and
‘‘(B) any employment network that pro-
vides services to such an individual shall receive
payments for such services,
during the individual’s outcome payment period (as
defined in paragraph (4)(B) of subsection (h), in-
cluding any alteration of such period in accordance
with paragraph (5) of that subsection).’’.
(b) CONFORMING AMENDMENTS.—
(1) AMENDMENTS TO TITLE II.—
(A) Section 221(i) of the Social Security
Act (42 U.S.C. 421(i)) is amended by adding at
the end the following:
‘‘(5) For suspension of reviews under this subsection
in the case of an individual using a ticket to work and
self-sufficiency, see section 1148(i).’’.
(B) Section 222(a) of the Social Security
Act (42 U.S.C. 422(a)) is repealed.
(C) Section 222(b) of the Social Security
Act (42 U.S.C. 422(b)) is repealed.
(D) Section 225(b)(1) of the Social Secu-
rity Act (42 U.S.C. 425(b)(1)) is amended by
striking ‘‘a program of vocational rehabilitation
services’’ and inserting ‘‘a program consisting
of the Ticket to Work and Self-Sufficiency Pro-
gram under section 1148 or another program of
vocational rehabilitation services, employment
services, or other support services’’.
(2) AMENDMENTS TO TITLE XVI.—
(A) Section 1615(a) of the Social Security
Act (42 U.S.C. 1382d(a)) is amended to read
as follows:
‘‘SEC. 1615. (a) In the case of any blind or disabled
individual who—
‘‘(1) has not attained age 16, and
‘‘(2) with respect to whom benefits are paid
under this title,
the Commissioner of Social Security shall make provision
for referral of such individual to the appropriate State
agency administering the State program under title V.’’.
(B) Section 1615(c) of the Social Security
Act (42 U.S.C. 1382d(c)) is repealed.
(C) Section 1631(a)(6)(A) of the Social
Security Act (42 U.S.C. 1383(a)(6)(A)) is
amended by striking ‘‘a program of vocational
rehabilitation services’’ and inserting ‘‘a pro-
gram consisting of the Ticket to Work and Self-
Sufficiency Program under section 1148 or an-
other program of vocational rehabilitation serv-
ices, employment services, or other support
services’’.
(D) Section 1633(c) of the Social Security
Act (42 U.S.C. 1383b(c)) is amended—
(i) by inserting ‘‘(1)’’ after ‘‘(c)’’; and
(ii) by adding at the end the fol-
lowing:
‘‘(2) For suspension of continuing disability reviews
and other reviews under this title similar to reviews under
section 221 in the case of an individual using a ticket to
work and self-sufficiency, see section 1148(i).’’.
(c) EFFECTIVE DATE.—Subject to subsection (d),
the amendments made by subsections (a) and (b) shall
take effect with the first month following 1 year after the
date of enactment of this Act.
(d) GRADUATED IMPLEMENTATION OF PROGRAM.—
(1) IN GENERAL.—Not later than 1 year after
the date of enactment of this Act, the Commissioner
of Social Security shall commence implementation of
the amendments made by this section (other than
paragraphs (1)(C) and (2)(B) of subsection (b)) in
graduated phases at phase-in sites selected by the
Commissioner. Such phase-in sites shall be selected
so as to ensure, prior to full implementation of the
Ticket to Work and Self-Sufficiency Program, the
development and refinement of referral processes,
payment systems, computer linkages, management
information systems, and administrative processes
necessary to provide for full implementation of such
amendments. Subsection (c) shall apply with respect
to paragraphs (1)(C) and (2)(B) of subsection (b)
without regard to this subsection.
(2) REQUIREMENTS.—Implementation of the
Program at each phase-in site shall be carried out
on a wide enough scale to permit a thorough evalua-
tion of the alternative methods under consideration,
so as to ensure that the most efficacious methods
are determined and in place for full implementation
of the Program on a timely basis.
(3) FULL
IMPLEMENTATION.—The Commis-
sioner shall ensure that the ability to provide tickets
and services to individuals under the Program exists
in every State as soon as practicable on or after the
effective date specified in subsection (c) but not later
than 3 years after such date.
(4) ONGOING EVALUATION OF PROGRAM.—
(A) IN
GENERAL.—The Commissioner
shall design and conduct a series of evaluations
to assess the cost-effectiveness of activities car-
ried out under this section and the amendments
made thereby, as well as the effects of this sec-
tion and the amendments made thereby on
work outcomes for beneficiaries receiving tickets
to work and self-sufficiency under the Program.
(B) CONSULTATION.—The Commissioner
shall design and carry out the series of evalua-
tions after receiving relevant advice from ex-
perts in the fields of disability, vocational reha-
bilitation, and program evaluation and individ-
uals using tickets to work and self-sufficiency
under the Program and consulting with the
Work Incentives Advisory Panel established
under section 201(f), the Comptroller General
of the United States, other agencies of the Fed-
eral Government, and private organizations
with appropriate expertise.
(C) METHODOLOGY.—
(i) IMPLEMENTATION.—The Commis-
sioner, in consultation with the Work In-
centives Advisory Panel established under
section 201(f), shall ensure that plans for
evaluations and data collection methods
under the Program are appropriately de-
signed to obtain detailed employment infor-
mation.
(ii) SPECIFIC
MATTERS
TO
BE
AD-
DRESSED.—Each such evaluation shall ad-
dress (but is not limited to)—
(I) the annual cost (including net
cost) of the Program and the annual
cost (including net cost) that would
have been incurred in the absence of
the Program;
(II) the determinants of return to
work, including the characteristics of
beneficiaries in receipt of tickets
under the Program;
(III) the types of employment
services, vocational rehabilitation serv-
ices, and other support services fur-
nished to beneficiaries in receipt of
tickets under the Program who return
to work and to those who do not re-
turn to work;
(IV) the duration of employment
services, vocational rehabilitation serv-
ices, and other support services fur-
nished to beneficiaries in receipt of
tickets under the Program who return
to work and the duration of such serv-
ices furnished to those who do not re-
turn to work and the cost to employ-
ment networks of furnishing such
services;
(V) the employment outcomes,
including wages, occupations, benefits,
and hours worked, of beneficiaries
who return to work after receiving
tickets under the Program and those
who return to work without receiving
such tickets;
(VI) the characteristics of pro-
viders whose services are provided
within an employment network under
the Program;
(VII) the extent (if any) to which
employment networks display a great-
er willingness to provide services to
beneficiaries with a range of disabil-
ities;
(VIII) the characteristics (includ-
ing employment outcomes) of those
beneficiaries 
who 
receive 
services
under the outcome payment system
and of those beneficiaries who receive
services under the outcome-milestone
payment system;
(IX) measures of satisfaction
among beneficiaries in receipt of tick-
ets under the Program; and
(X) reasons for (including com-
ments solicited from beneficiaries re-
garding) their choice not to use their
tickets or their inability to return to
work despite the use of their tickets.
(D) PERIODIC
EVALUATION
REPORTS.—
Following the close of the third and fifth fiscal
years ending after the effective date under sub-
section (c), and prior to the close of the seventh
fiscal year ending after such date, the Commis-
sioner shall transmit to the Committee on Ways
and Means of the House of Representatives and
the Committee on Finance of the Senate a re-
port containing the Commissioner’s evaluation
of the progress of activities conducted under the
provisions of this section and the amendments
made thereby. Each such report shall set forth
the Commissioner’s evaluation of the extent to
which the Program has been successful and the
Commissioner’s conclusions on whether or how
the Program should be modified. Each such re-
port shall include such data, findings, materials,
and recommendations as the Commissioner may
consider appropriate.
(5) EXTENT OF STATE’S RIGHT OF FIRST RE-
FUSAL IN ADVANCE OF FULL IMPLEMENTATION OF
AMENDMENTS IN SUCH STATE.—
(A) IN
GENERAL.—In the case of any
State in which the amendments made by sub-
section (a) have not been fully implemented
pursuant to this subsection, the Commissioner
shall determine by regulation the extent to
which—
(i) the requirement under section
222(a) of the Social Security Act for
prompt referrals to a State agency, and
(ii) the authority of the Commissioner
under section 222(d)(2) of the Social Secu-
rity Act to provide vocational rehabilitation
services in such State by agreement or
contract with other public or private agen-
cies, organizations, institutions, or individ-
uals,
shall apply in such State.
(B) EXISTING AGREEMENTS.—Nothing in
subparagraph (A) or the amendments made by
subsection (a) shall be construed to limit, im-
pede, or otherwise affect any agreement entered
into pursuant to section 222(d)(2) of the Social
Security Act before the date of enactment of
this Act with respect to services provided pursu-
ant to such agreement to beneficiaries receiving
services under such agreement as of such date,
except with respect to services (if any) to be
provided after 3 years after the effective date
provided in subsection (c).
(e) SPECIFIC REGULATIONS REQUIRED.—
(1) IN GENERAL.—The Commissioner of Social
Security shall prescribe such regulations as are nec-
essary to implement the amendments made by this
section.
(2) SPECIFIC MATTERS TO BE INCLUDED IN
REGULATIONS.—The matters which shall be ad-
dressed in such regulations shall include—
(A) the form and manner in which tickets
to work and self-sufficiency may be distributed
to beneficiaries pursuant to section 1148(b)(1)
of the Social Security Act;
(B) the format and wording of such tick-
ets, which shall incorporate by reference any
contractual terms governing service by employ-
ment networks under the Program;
(C) the form and manner in which State
agencies may elect participation in the Ticket to
Work and Self-Sufficiency Program (and revoke
such 
an 
election) 
pursuant 
to 
section
1148(c)(1) of the Social Security Act and provi-
sion for periodic opportunities for exercising
such elections (and revocations);
(D) the status of State agencies under sec-
tion 1148(c)(1) at the time that State agencies
exercise elections (and revocations) under that
section;
(E) the terms of agreements to be entered
into with program managers pursuant to sec-
tion 1148(d) of the Social Security Act,
including—
(i) the terms by which program man-
agers are precluded from direct participa-
tion in the delivery of services pursuant to
section 1148(d)(3) of the Social Security
Act;
(ii) standards which must be met by
quality assurance measures referred to in
paragraph (6) of section 1148(d) and
methods of recruitment of employment net-
works utilized pursuant to paragraph (2)
of section 1148(e); and
(iii) the format under which dispute
resolution 
will 
operate 
under 
section
1148(d)(7);
(F) the terms of agreements to be entered
into with employment networks pursuant to sec-
tion 1148(d)(4) of the Social Security Act,
including—
(i) the manner in which service areas
are 
specified 
pursuant 
to 
section
1148(f)(2)(A) of the Social Security Act;
(ii) the general selection criteria and
the specific selection criteria which are ap-
plicable to employment networks under
section 1148(f)(1)(C) of the Social Secu-
rity Act in selecting service providers;
(iii) specific requirements relating to
annual financial reporting by employment
networks pursuant to section 1148(f)(3) of
the Social Security Act; and
(iv) the national model to which peri-
odic outcomes reporting by employment
networks must conform under section
1148(f)(4) of the Social Security Act;
(G) standards which must be met by indi-
vidual work plans pursuant to section 1148(g)
of the Social Security Act;
(H) standards which must be met by pay-
ment systems required under section 1148(h) of
the Social Security Act, including—
(i) the form and manner in which
elections by employment networks of pay-
ment systems are to be exercised pursuant
to section 1148(h)(1)(A);
(ii) the terms which must be met by
an outcome payment system under section
1148(h)(2);
(iii) the terms which must be met by
an outcome-milestone payment system
under section 1148(h)(3);
(iv) any revision of the percentage
specified in paragraph (2)(C) of section
1148(h) of the Social Security Act or the
period of time specified in paragraph
(4)(B) of such section 1148(h); and
(v) annual oversight procedures for
such systems; and
(I) procedures for effective oversight of the
Program by the Commissioner of Social Secu-
rity, including periodic reviews and reporting
requirements.
(f) WORK INCENTIVES ADVISORY PANEL.—
(1) ESTABLISHMENT.—There is established
within the Social Security Administration a panel to
be known as the ‘‘Work Incentives Advisory Panel’’
(in this subsection referred to as the ‘‘Panel’’).
(2) DUTIES OF PANEL.—It shall be the duty of
the Panel to—
(A) advise the Secretary of Health and
Human Services, the Secretary of Labor, the
Secretary of Education, and the Commissioner
of Social Security on issues related to work in-
centives programs, planning, and assistance for
individuals with disabilities, including work in-
centive provisions under titles II, XI, XVI,
XVIII, and XIX of the Social Security Act (42
U.S.C. 401 et seq., 1301 et seq., 1381 et seq.,
1395 et seq., 1396 et seq.); and
(B) with respect to the Ticket to Work and
Self-Sufficiency Program established under sec-
tion 1148 of the Social Security Act—
(i) advise the Commissioner of Social
Security with respect to establishing phase-
in sites for such Program and fully imple-
menting the Program thereafter, the re-
finement of access of disabled beneficiaries
to employment networks, payment systems,
of the Senate, and the Minority Leader of the
Senate.
(B) REPRESENTATION.—All members ap-
pointed to the Panel shall have experience or
expert knowledge in the fields of, or related to,
work incentive programs, employment services,
vocational rehabilitation services, health care
services, and other support services for individ-
uals with disabilities. At least 7 members of the
Panel shall be individuals with disabilities or
representatives of individuals with disabilities,
except that, of those 7 members, at least 5
members shall be current or former title II dis-
ability beneficiaries or title XVI disability bene-
ficiaries (as such terms are defined in section
1148(k) of the Social Security Act (as added by
subsection (a)).
(C) TERMS.—
(i) IN GENERAL.—Each member shall
be appointed for a term of 4 years (or, if
less, for the remaining life of the Panel),
except as provided in clauses (ii) and (iii).
The initial members shall be appointed not
later than 90 days after the date of enact-
ment of this Act.