In the Senate of the United States,
October 21, 1999.
Resolved, That the bill from the House of Representa-
tives (H.R. 1180) entitled ‘‘An Act to amend the Social Secu-
rity 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.’’, do pass with
the following
AMENDMENT:
Strike out all after the enacting clause and insert:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Work Incentives Improvement Act of 1999’’.
(b) TABLE OF CONTENTS.—The table of contents of 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.
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Sec. 102. Continuation of medicare coverage for working individuals with disabil-
ities.
Sec. 103. Grants to develop and establish State infrastructures to support work-
ing individuals with disabilities.
Sec. 104. Demonstration of coverage under the medicaid program of workers with
potentially severe disabilities.
Sec. 105. Election by disabled beneficiaries to suspend medigap insurance when
covered under a group health plan.
TITLE II—TICKET TO WORK AND SELF-SUFFICIENCY AND RELATED
PROVISIONS
Subtitle A—Ticket to Work and Self-Sufficiency
Sec. 201. Establishment of the Ticket to Work and Self-Sufficiency Program.
Subtitle B—Elimination of Work Disincentives
Sec. 211. Work activity standard as a basis for review of an individual’s disabled
status.
Sec. 212. Expedited reinstatement of disability benefits.
Subtitle C—Work Incentives Planning, Assistance, and Outreach
Sec. 221. Work incentives outreach program.
Sec. 222. State grants for work incentives assistance to disabled beneficiaries.
TITLE III—DEMONSTRATION PROJECTS AND STUDIES
Sec. 301. Permanent extension of disability insurance program demonstration
project authority.
Sec. 302. Demonstration projects providing for reductions in disability insurance
benefits based on earnings.
Sec. 303. Studies and reports.
TITLE IV—MISCELLANEOUS AND TECHNICAL AMENDMENTS
Sec. 401. Technical amendments relating to drug addicts and alcoholics.
Sec. 402. Treatment of prisoners.
Sec. 403. Revocation by members of the clergy of exemption from Social Security
coverage.
Sec. 404. Additional technical amendment relating to cooperative research or
demonstration projects under titles II and XVI.
Sec. 405. Authorization for State to permit annual wage reports.
SEC. 2. FINDINGS AND PURPOSES.
(a) FINDINGS.—Congress makes the following findings:
(1) Health care is important to all Americans.
(2) Health care is particularly important to in-
dividuals with disabilities and special health care
needs who often cannot afford the insurance available
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to them through the private market, are uninsurable
by the plans available in the private sector, and are
at great risk of incurring very high and economically
devastating health care costs.
(3) Americans with significant disabilities often
are unable to obtain health care insurance that pro-
vides coverage of the services and supports that enable
them to live independently and enter or rejoin the
workforce. Personal assistance services (such as at-
tendant services, personal assistance with transpor-
tation to and from work, reader services, job coaches,
and related assistance) remove many of the barriers
between significant disability and work. Coverage for
such services, as well as for prescription drugs, dura-
ble medical equipment, and basic health care are
powerful and proven tools for individuals with sig-
nificant disabilities to obtain and retain employment.
(4) For individuals with disabilities, the fear of
losing health care and related services is one of the
greatest barriers keeping the individuals from maxi-
mizing their employment, earning potential, and
independence.
(5) Individuals with disabilities who are bene-
ficiaries under title II or XVI of the Social Security
Act (42 U.S.C. 401 et seq., 1381 et seq.) risk losing
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medicare or medicaid coverage that is linked to their
cash benefits, a risk that is an equal, or greater, work
disincentive than the loss of cash benefits associated
with working.
(6) Currently, less than 1⁄2 of 1 percent of social
security disability insurance and supplemental secu-
rity income beneficiaries cease to receive benefits as a
result of employment.
(7) Beneficiaries have cited the lack of adequate
employment training and placement services as an
additional barrier to employment.
(8) If an additional 1⁄2 of 1 percent of the cur-
rent social security disability insurance (DI) and
supplemental security income (SSI) recipients were to
cease receiving benefits as a result of employment, the
savings to the Social Security Trust Funds in cash
assistance would total $3,500,000,000 over the
worklife of the individuals.
(b) PURPOSES.—The purposes of this Act are as fol-
lows:
(1) To provide health care and employment
preparation and placement services to individuals
with disabilities that will enable those individuals to
reduce their dependency on cash benefit programs.
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(ii) in subclause (XV), by adding ‘‘or’’
at the end; and
(iii) by adding at the end the fol-
lowing:
‘‘(XVI) who are employed individ-
uals with a medically improved dis-
ability described in section 1905(v)(1)
and whose assets, resources, and earned
or unearned income (or both) do not
exceed such limitations (if any) as the
State may establish, but only if the
State provides medical assistance to
individuals 
described 
in 
subclause
(XV);’’.
(B) DEFINITION OF EMPLOYED INDIVIDUALS
WITH A MEDICALLY IMPROVED DISABILITY.—Sec-
tion 1905 of the Social Security Act (42 U.S.C.
1396d) is amended by adding at the end the fol-
lowing:
‘‘(v)(1) The term ‘employed individual with a medi-
cally improved disability’ means an individual who—
‘‘(A) is at least 16, but less than 65, years of age;
‘‘(B) is employed (as defined in paragraph (2));
‘‘(C) ceases to be eligible for medical assistance
under section 1902(a)(10)(A)(ii)(XV) because the in-
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dividual, by reason of medical improvement, is deter-
mined at the time of a regularly scheduled continuing
disability review to no longer be eligible for benefits
under section 223(d) or 1614(a)(3); and
‘‘(D) continues to have a severe medically deter-
minable impairment, as determined under regulations
of the Secretary.
‘‘(2) For purposes of paragraph (1), an individual is
considered to be ‘employed’ if the individual—
‘‘(A) is earning at least the applicable minimum
wage requirement under section 6 of the Fair Labor
Standards Act (29 U.S.C. 206) and working at least
40 hours per month; or
‘‘(B) is engaged in a work effort that meets sub-
stantial and reasonable threshold criteria for hours of
work, wages, or other measures, as defined by the
State and approved by the Secretary.’’.
(C) 
CONFORMING
AMENDMENT.—Section
1905(a) of such Act (42 U.S.C. 1396d(a)) is
amended in the matter preceding paragraph
(1)—
(i) in clause (x), by striking ‘‘or’’ at
the end;
(ii) in clause (xi), by adding ‘‘or’’ at
the end; and
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(iii) by inserting after clause (xi), the
following:
‘‘(xii) employed individuals with a medically
improved disability (as defined in subsection (v)),’’.
(3) STATE AUTHORITY TO IMPOSE INCOME-RE-
LATED PREMIUMS AND COST-SHARING.—Section 1916
of such Act (42 U.S.C. 1396o) is amended—
(A) in subsection (a), by striking ‘‘The
State plan’’ and inserting ‘‘Subject to subsection
(g), the State plan’’; and
(B) by adding at the end the following:
‘‘(g) With respect to individuals provided medical as-
sistance only under subclause (XV) or (XVI) of section
1902(a)(10)(A)(ii)—
‘‘(1) a State may (in a uniform manner for in-
dividuals described in either such subclause)—
‘‘(A) require such individuals to pay pre-
miums or other cost-sharing charges set on a
sliding scale based on income that the State may
determine; and
‘‘(B) require payment of 100 percent of such
premiums for such year in the case of such an
individual who has income for a year that ex-
ceeds 250 percent of the income official poverty
line (referred to in subsection (c)(1)) applicable
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to a family of the size involved, except that in
the case of such an individual who has income
for a year that does not exceed 450 percent of
such poverty line, such requirement may only
apply to the extent such premiums do not exceed
7.5 percent of such income; and
‘‘(2) such State shall require payment of 100
percent of such premiums for a year by such an indi-
vidual whose adjusted gross income (as defined in sec-
tion 62 of the Internal Revenue Code of 1986) for
such year exceeds $75,000, except that a State may
choose to subsidize such premiums by using State
funds which may not be federally matched under this
title.
In the case of any calendar year beginning after 2000, the
dollar amount specified in paragraph (2) shall be increased
in 
accordance 
with 
the 
provisions 
of 
section
215(i)(2)(A)(ii).’’.
(4) PROHIBITION
AGAINST
SUPPLANTATION
OF
STATE FUNDS AND STATE FAILURE TO MAINTAIN EF-
FORT.—Section 1903(i) of such Act (42 U.S.C.
1396b(i)) is amended—
(A) by striking the period at the end of
paragraph (18) and inserting ‘‘; or’’; and
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(B) by inserting after such paragraph the
following:
‘‘(19) with respect to amounts expended for med-
ical assistance provided to an individual described in
subclause (XV) or (XVI) of section 1902(a)(10)(A)(ii)
for a fiscal year unless the State demonstrates to the
satisfaction of the Secretary that the level of State
funds expended for such fiscal year for programs to
enable working individuals with disabilities to work
(other than for such medical assistance) is not less
than the level expended for such programs during the
most recent State fiscal year ending before the date of
enactment of this paragraph.’’.
(b) CONFORMING AMENDMENTS.—
(1) Section 1903(f)(4) of the Social Security Act
(42 U.S.C. 1396b(f)(4) is amended in the matter pre-
ceding 
subparagraph 
(A) 
by 
inserting
‘‘1902(a)(10)(A)(ii)(XV), 
1902(a)(10)(A)(ii)(XVI)’’
after ‘‘1902(a)(10)(A)(ii)(X),’’.
(2) Section 1903(f)(4) of such Act, as amended
by 
paragraph 
(1), 
is 
amended 
by 
inserting
‘‘1902(a)(10)(A)(ii)(XIII),’’ 
before
‘‘1902(a)(10)(A)(ii)(XV)’’.
(c) GAO REPORT.—Not later than 3 years after the
date of the enactment of this Act, the Comptroller General
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of the United States shall submit a report to Congress re-
garding the amendments made by this section that
examines—
(1) the extent to which higher health care costs
for individuals with disabilities at higher income lev-
els deter employment or progress in employment;
(2) whether such individuals have health insur-
ance coverage or could benefit from the State option
established under such amendments to provide a med-
icaid buy-in; and
(3) how the States are exercising such option,
including—
(A) how such States are exercising the flexi-
bility afforded them with regard to income dis-
regards;
(B) what income and premium levels have
been set;
(C) the degree to which States are sub-
sidizing premiums above the dollar amount spec-
ified in section 1916(g)(2) of the Social Security
Act (42 U.S.C. 1396o(g)(2)); and
(D) the extent to which there exists any
crowd-out effect.
(d) EFFECTIVE DATE.—
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(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section
apply to medical assistance for items and services
furnished on or after October 1, 1999.
(2) RETROACTIVITY
OF
CONFORMING
AMEND-
MENT.—The amendment made by subsection (b)(2)
takes effect as if included in the enactment of the Bal-
anced Budget Act of 1997.
SEC. 102. CONTINUATION OF MEDICARE COVERAGE FOR
WORKING INDIVIDUALS WITH DISABILITIES.
(a) CONTINUATION OF COVERAGE.—
(1) IN GENERAL.—Section 226 of the Social Se-
curity Act (42 U.S.C. 426) is amended—
(A) in the third sentence of subsection (b),
by inserting ‘‘, except as provided in subsection
(j)’’ after ‘‘but not in excess of 24 such months’’;
and
(B) by adding at the end the following:
‘‘(j) The 24-month limitation on deemed entitlement
under the third sentence of subsection (b) shall not apply—
‘‘(1) for months occurring during the 6-year pe-
riod beginning with the first month that begins after
the date of enactment of this subsection; and
‘‘(2) for subsequent months, in the case of an in-
dividual who was entitled to benefits under subsection
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(b) as of the last month of such 6-year period and
would continue (but for such 24-month limitation) to
be so entitled.’’.
(2) 
CONFORMING
AMENDMENT.—Section
1818A(a)(2)(C) of the Social Security Act (42 U.S.C.
1395i–2a(a)(2)(C)) is amended—
(A) by striking ‘‘solely’’; and
(B) by inserting ‘‘or the expiration of the
last month of the 6-year period described in sec-
tion 226(j)’’ before the semicolon.
(b) GAO REPORT.—Not later than 4 years after the
date of the enactment of this Act, the Comptroller General
of the United States shall submit a report to Congress
that—
(1) examines the effectiveness and cost of sub-
section (j) of section 226 of the Social Security Act
(42 U.S.C. 426);
(2) examines the necessity and effectiveness of
providing the continuation of medicare coverage
under that subsection to individuals whose annual in-
come exceeds the contribution and benefit base (as de-
termined under section 230 of the Social Security
Act);
(3) examines the viability of providing the con-
tinuation of medicare coverage under that subsection
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based on a sliding scale premium for individuals
whose annual income exceeds such contribution and
benefit base;
(4) examines the interrelation between the use of
the continuation of medicare coverage under that sub-
section and the use of private health insurance cov-
erage by individuals during the 6-year period; and
(5) recommends whether that subsection should
continue to be applied beyond the 6-year period de-
scribed in the subsection.
(c) EFFECTIVE DATE.—The amendments made by sub-
section (a) apply to months beginning with the first month
that begins after the date of the enactment of this Act.
(d) TREATMENT OF CERTAIN INDIVIDUALS.—An indi-
vidual enrolled under section 1818A of the Social Security
Act (42 U.S.C. 1395i–2a) shall be treated with respect to
premium payment obligations under such section as though
the individual had continued to be entitled to benefits under
section 226(b) of such Act for—
(1) months described in section 226(j)(1) of such
Act (42 U.S.C. 426(j)(1)) (as added by subsection
(a)); and
(2) subsequent months, in the case of an indi-
vidual who was so enrolled as of the last month de-
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scribed in section 226(j)(2) of such Act (42 U.S.C.
426(j)(2)) (as so added).
SEC. 103. GRANTS TO DEVELOP AND ESTABLISH STATE IN-
FRASTRUCTURES TO SUPPORT WORKING IN-
DIVIDUALS WITH DISABILITIES.
(a) ESTABLISHMENT.—
(1) IN GENERAL.—The Secretary of Health and
Human Services (in this section referred to as the
‘‘Secretary’’) shall award grants described in sub-
section (b) to States to support the design, establish-
ment, and operation of State infrastructures that pro-
vide items and services to support working individ-
uals with disabilities.
(2) APPLICATION.—In order to be eligible for an
award of a grant under this section, a State shall
submit an application to the Secretary at such time,
in such manner, and containing such information as
the Secretary shall require.
(3) DEFINITION OF STATE.—In this section, the
term ‘‘State’’ means each of the 50 States, the District
of Columbia, Puerto Rico, Guam, the United States
Virgin Islands, American Samoa, and the Common-
wealth of the Northern Mariana Islands.
(b) GRANTS FOR INFRASTRUCTURE AND OUTREACH.—
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(1) IN GENERAL.—Out of the funds appropriated
under subsection (e), the Secretary shall award grants
to States to—
(A) support the establishment, implementa-
tion, and operation of the State infrastructures
described in subsection (a); and
(B) conduct outreach campaigns regarding
the existence of such infrastructures.
(2) ELIGIBILITY FOR GRANTS.—
(A) IN GENERAL.—No State may receive a
grant under this subsection unless the State—
(i) has an approved amendment to the
State plan under title XIX of the Social Se-
curity Act (42 U.S.C. 1396 et seq.) that pro-
vides medical assistance under such plan to
individuals 
described 
in 
section
1902(a)(10)(A)(ii)(XV) of the Social Secu-
rity 
Act 
(42 
U.S.C.
1396a(a)(10)(A)(ii)(XV)); and
(ii) demonstrates to the satisfaction of
the Secretary that the State makes personal
assistance services available under the State
plan under title XIX of the Social Security
Act (42 U.S.C. 1396 et seq.) to the extent
necessary to enable individuals described in
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clause (i) to remain employed (as deter-
mined under section 1905(v)(2) of the So-
cial Security Act (42 U.S.C. 1396d(v)(2))).
(B) DEFINITION OF PERSONAL ASSISTANCE
SERVICES.—In this paragraph, the term ‘‘per-
sonal assistance services’’ means a range of serv-
ices, provided by 1 or more persons, designed to
assist an individual with a disability to perform
daily activities on and off the job that the indi-
vidual would typically perform if the individual
did not have a disability. Such services shall be
designed to increase the individual’s control in
life and ability to perform everyday activities on
or off the job.
(3) DETERMINATION OF AWARDS.—
(A) IN GENERAL.—Subject to subparagraph
(B), the Secretary shall determine a formula for
awarding grants to States under this section that
provides special consideration to States that pro-
vide medical assistance under title XIX of the
Social Security Act to individuals described in
section 1902(a)(10)(A)(ii)(XVI) of that Act (42
U.S.C. 1396a(a)(10)(A)(ii)(XVI)).
(B) AWARD LIMITS.—
(i) MINIMUM AWARDS.—
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(B) for fiscal year 2001, $25,000,000;
(C) for fiscal year 2002, $30,000,000;
(D) for fiscal year 2003, $35,000,000;
(E) for fiscal year 2004, $40,000,000; and
(F) for each of fiscal years 2005 through
2010, the amount appropriated for the preceding
fiscal year increased by the percentage increase
(if any) in the Consumer Price Index for All
Urban Consumers (United States city average)
for the preceding fiscal year.
(2) BUDGET AUTHORITY.—This subsection con-
stitutes budget authority in advance of appropria-
tions Acts and represents the obligation of the Federal
Government to provide for the payment of the
amounts appropriated under paragraph (1).
(f) RECOMMENDATION.—Not later than October 1,
2009, the Secretary, in consultation with the Work Incen-
tives Advisory Panel established under section 201(f), shall
submit a recommendation to the Committee on Commerce
of the House of Representatives and the Committee on Fi-
nance of the Senate regarding whether the grant program
established under this section should be continued after fis-
cal year 2010.
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SEC. 104. DEMONSTRATION OF COVERAGE UNDER THE
MEDICAID PROGRAM OF WORKERS WITH PO-
TENTIALLY SEVERE DISABILITIES.
(a) STATE APPLICATION.—A State may apply to the
Secretary of Health and Human Services (in this section
referred to as the ‘‘Secretary’’) for approval of a demonstra-
tion project (in this section referred to as a ‘‘demonstration
project’’) under which up to a specified maximum number
of individuals who are workers with a potentially severe
disability (as defined in subsection (b)(1)) are provided
medical assistance equal to that provided under section
1905(a) of the Social Security Act (42 U.S.C. 1396d(a))
to individuals described in section 1902(a)(10)(A)(ii)(XV)
of that Act (42 U.S.C. 1396a(a)(10)(A)(ii)(XV)).
(b) WORKER WITH
A POTENTIALLY SEVERE DIS-
ABILITY DEFINED.—For purposes of this section—
(1) IN GENERAL.—The term ‘‘worker with a po-
tentially severe disability’’ means, with respect to a
demonstration project, an individual who—
(A) is at least 16, but less than 65, years
of age;
(B) has a specific physical or mental im-
pairment that, as defined by the State under the
demonstration project, is reasonably expected,
but for the receipt of items and services described
in section 1905(a) of the Social Security Act (42
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U.S.C. 1396d(a)), to become blind or disabled (as
defined under section 1614(a) of the Social Secu-
rity Act (42 U.S.C. 1382c(a))); and
(C) is employed (as defined in paragraph
(2)).
(2) DEFINITION OF EMPLOYED.—An individual
is considered to be ‘‘employed’’ if the individual—
(A) is earning at least the applicable min-
imum wage requirement under section 6 of the
Fair Labor Standards Act (29 U.S.C. 206) and
working at least 40 hours per month; or
(B) is engaged in a work effort that meets
substantial and reasonable threshold criteria for
hours of work, wages, or other measures, as de-
fined under the demonstration project and ap-
proved by the Secretary.
(c) APPROVAL OF DEMONSTRATION PROJECTS.—
(1) IN GENERAL.—Subject to paragraph (3), the
Secretary shall approve applications under subsection
(a) that meet the requirements of paragraph (2) and
such additional terms and conditions as the Secretary
may require. The Secretary may waive the require-
ment of section 1902(a)(1) of the Social Security Act
(42 U.S.C. 1396a(a)(1)) to allow for sub-State dem-
onstrations.
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(2) TERMS AND CONDITIONS OF DEMONSTRATION
PROJECTS.—The Secretary may not approve a dem-
onstration project under this section unless the State
provides assurances satisfactory to the Secretary that
the following conditions are or will be met:
(A) ELECTION OF OPTIONAL CATEGORY.—
The State has elected to provide coverage under
its plan under title XIX of the Social Security
Act 
of 
individuals 
described 
in 
section
1902(a)(10)(A)(ii)(XV) of the Social Security
Act (42 U.S.C. 1396a(a)(10)(A)(ii)(XV)).
(B) MAINTENANCE
OF
STATE
EFFORT.—
Federal funds paid to a State pursuant to this
section must be used to supplement, but not sup-
plant, the level of State funds expended for work-
ers with potentially severe disabilities under pro-
grams in effect for such individuals at the time
the demonstration project is approved under this
section.
(C) INDEPENDENT EVALUATION.—The State
provides for an independent evaluation of the
project.
(3) LIMITATIONS ON FEDERAL FUNDING.—
(A) APPROPRIATION.—
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(i) IN GENERAL.—Out of any funds in
the Treasury not otherwise appropriated,
there is appropriated to carry out this
section—
(I) 
for 
fiscal 
year 
2000,
$72,000,000;
(II) 
for 
fiscal 
year 
2001,
$74,000,000;
(III) 
for 
fiscal 
year 
2002,
$78,000,000; and
(IV) 
for 
fiscal 
year 
2003,
$81,000,000.
(ii) BUDGET AUTHORITY.—Clause (i)
constitutes budget authority in advance of
appropriations Acts and represents the obli-
gation of the Federal Government to provide
for the payment of the amounts appro-
priated under clause (i).
(B) LIMITATION ON PAYMENTS.—In no case
may—
(i) except as provided in clause (ii),
the aggregate amount of payments made by
the Secretary to States under this section
exceed $300,000,000;
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(ii) the aggregate amount of payments
made by the Secretary to States for admin-
istrative expenses relating to annual reports
required 
under 
subsection 
(d) 
exceed
$5,000,000; or
(iii) payments be provided by the Sec-
retary for a fiscal year after fiscal year
2005.
(C) FUNDS
ALLOCATED
TO
STATES.—The
Secretary shall allocate funds to States based on
their applications and the availability of funds.
Funds allocated to a State under a grant made
under this section for a fiscal year shall remain
available until expended.
(D) FUNDS NOT ALLOCATED TO STATES.—
Funds not allocated to States in the fiscal year
for which they are appropriated shall remain
available in succeeding fiscal years for allocation
by the Secretary using the allocation formula es-
tablished under this section.
(E) PAYMENTS TO STATES.—The Secretary
shall pay to each State with a demonstration
project approved under this section, from its al-
location under subparagraph (C), an amount for
each quarter equal to the Federal medical assist-
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ance percentage (as defined in section 1905(b) of
the Social Security Act (42 U.S.C. 1395d(b)) of
expenditures in the quarter for medical assist-
ance provided to workers with a potentially se-
vere disability.
(d) ANNUAL REPORT.—A State with a demonstration
project approved under this section shall submit an annual
report to the Secretary on the use of funds provided under
the grant. Each report shall include enrollment and finan-
cial statistics on—
(1) the total population of workers with poten-
tially severe disabilities served by the demonstration
project; and
(2) each population of such workers with a spe-
cific physical or mental impairment described in sub-
section (b)(1)(B) served by such project.
(e) RECOMMENDATION.—Not later than October 1,
2002, the Secretary shall submit a recommendation to the
Committee on Commerce of the House of Representatives
and the Committee on Finance of the Senate regarding
whether the demonstration project established under this
section should be continued after fiscal year 2003.
(f) STATE DEFINED.—In this section, the term ‘‘State’’
has the meaning given such term for purposes of title XIX
of the Social Security Act (42 U.S.C. 1396 et seq.).
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SEC. 105. ELECTION BY DISABLED BENEFICIARIES TO SUS-
PEND MEDIGAP INSURANCE WHEN COVERED
UNDER A GROUP HEALTH PLAN.
(a) IN GENERAL.—Section 1882(q) of the Social Secu-
rity Act (42 U.S.C. 1395ss(q)) is amended—
(1) in paragraph (5)(C), by inserting ‘‘or para-
graph (6)’’ after ‘‘this paragraph’’; and
(2) by adding at the end the following new para-
graph:
‘‘(6) Each medicare supplemental policy shall
provide that benefits and premiums under the policy
shall be suspended at the request of the policyholder
if the policyholder is entitled to benefits under section
226(b) and is covered under a group health plan (as
defined in section 1862(b)(1)(A)(v)). If such suspen-
sion occurs and if the policyholder or certificate hold-
er loses coverage under the group health plan, such
policy shall be automatically reinstituted (effective as
of the date of such loss of coverage) under terms de-
scribed in subsection (n)(6)(A)(ii) as of the loss of
such coverage if the policyholder provides notice of
loss of such coverage within 90 days after the date of
such loss.’’.
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) apply with respect to requests made after the
date of the enactment of this Act.
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TITLE II—TICKET TO WORK AND
SELF-SUFFICIENCY AND RE-
LATED PROVISIONS
Subtitle A—Ticket to Work and
Self-Sufficiency
SEC. 201. ESTABLISHMENT OF THE TICKET TO WORK AND
SELF-SUFFICIENCY PROGRAM.
(a) IN GENERAL.—Part A of title XI of the Social Se-
curity Act (42 U.S.C. 1301 et seq.) is amended by adding
after section 1147 (as added by section 8 of the Noncitizen
Benefit Clarification and Other Technical Amendments Act
of 1998 (Public Law 105–306; 112 Stat. 2928)) the fol-
lowing:
‘‘TICKET TO WORK AND SELF-SUFFICIENCY PROGRAM
‘‘SEC. 1148. (a) IN GENERAL.—The Commissioner
shall establish a Ticket to Work and Self-Sufficiency Pro-
gram, under which a disabled beneficiary may use a ticket
to work and self-sufficiency issued by the Commissioner in
accordance with this section to obtain employment services,
vocational rehabilitation services, or other support services
from an employment network which is of the beneficiary’s
choice and which is willing to provide such services to the
beneficiary.
‘‘(b) TICKET SYSTEM.—
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‘‘(1) DISTRIBUTION OF TICKETS.—The Commis-
sioner may issue a ticket to work and self-sufficiency
to disabled beneficiaries for participation in the Pro-
gram.
‘‘(2) ASSIGNMENT OF TICKETS.—A disabled ben-
eficiary holding a ticket to work and self-sufficiency
may assign the ticket to any employment network of
the beneficiary’s choice which is serving under the
Program and is willing to accept the assignment.
‘‘(3) TICKET
TERMS.—A ticket issued under
paragraph (1) shall consist of a document which evi-
dences the Commissioner’s agreement to pay (as pro-
vided in paragraph (4)) an employment network,
which is serving under the Program and to which
such ticket is assigned by the beneficiary, for such em-
ployment services, vocational rehabilitation services,
and other support services as the employment network
may provide to the beneficiary.
‘‘(4) PAYMENTS TO EMPLOYMENT NETWORKS.—
The Commissioner shall pay an employment network
under the Program in accordance with the outcome
payment system under subsection (h)(2) or under the
outcome-milestone payment system under subsection
(h)(3) (whichever is elected pursuant to subsection
(h)(1)). An employment network may not request or
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receive compensation for such services from the bene-
ficiary.
‘‘(c) STATE PARTICIPATION.—
‘‘(1) IN GENERAL.—Each State agency admin-
istering or supervising the administration of the
State plan approved under title I of the Rehabilita-
tion Act of 1973 may elect to participate in the Pro-
gram as an employment network with respect to a
disabled beneficiary. If the State agency does elect to
participate in the Program, the State agency also
shall elect to be paid under the outcome payment sys-
tem or the outcome-milestone payment system in ac-
cordance with subsection (h)(1). With respect to a dis-
abled beneficiary that the State agency does not elect
to have participate in the Program, the State agency
shall be paid for services provided to that beneficiary
under the system for payment applicable under sec-
tion 222(d) and subsections (d) and (e) of section
1615. The Commissioner shall provide for periodic
opportunities for exercising such elections (and rev-
ocations).
‘‘(2) EFFECT OF PARTICIPATION BY STATE AGEN-
CY.—
‘‘(A) STATE AGENCIES PARTICIPATING.—In
any case in which a State agency described in
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paragraph (1) elects under that paragraph to
participate in the Program, the employment
services, vocational rehabilitation services, and
other support services which, upon assignment of
tickets to work and self-sufficiency, are provided
to disabled beneficiaries by the State agency act-
ing as an employment network shall be governed
by plans for vocational rehabilitation services
approved under title I of the Rehabilitation Act
of 1973.
‘‘(B) STATE AGENCIES ADMINISTERING MA-
TERNAL
AND
CHILD
HEALTH
SERVICES
PRO-
GRAMS.—Subparagraph (A) shall not apply with
respect to any State agency administering a pro-
gram under title V of this Act.
‘‘(3) SPECIAL
REQUIREMENTS
APPLICABLE
TO
CROSS-REFERRAL TO CERTAIN STATE AGENCIES.—
‘‘(A) IN GENERAL.—In any case in which
an employment network has been assigned a
ticket to work and self-sufficiency by a disabled
beneficiary, no State agency shall be deemed re-
quired, under this section, title I of the Workforce
Investment Act of 1998, title I of the Rehabilita-
tion Act of 1973, or a State plan approved under
such title, to accept any referral of such disabled
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beneficiary from such employment network un-
less such employment network and such State
agency have entered into a written agreement
that meets the requirements of subparagraph (B).
Any beneficiary who has assigned a ticket to
work and self-sufficiency to an employment net-
work that has not entered into such a written
agreement with such a State agency may not ac-
cess vocational rehabilitation services under title
I of the Rehabilitation Act of 1973 until such
time as the beneficiary is reassigned to a State
vocational rehabilitation agency by the Program
Manager.
‘‘(B) TERMS
OF
AGREEMENT.—An agree-
ment required by subparagraph (A) shall specify,
in accordance with regulations prescribed pursu-
ant to subparagraph (C)—
‘‘(i) the extent (if any) to which the
employment network holding the ticket will
provide to the State agency—
‘‘(I) reimbursement for costs in-
curred in providing services described
in subparagraph (A) to the disabled
beneficiary; and
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‘‘(II) other amounts from pay-
ments made by the Commissioner to
the employment network pursuant to
subsection (h); and
‘‘(ii) any other conditions that may be
required by such regulations.
‘‘(C) 
REGULATIONS.—The 
Commissioner
and the Secretary of Education shall jointly pre-
scribe regulations specifying the terms of agree-
ments required by subparagraph (A) and other-
wise necessary to carry out the provisions of this
paragraph.
‘‘(D) PENALTY.—No payment may be made
to an employment network pursuant to sub-
section (h) in connection with services provided
to any disabled beneficiary if such employment
network makes referrals described in subpara-
graph (A) in violation of the terms of the agree-
ment required under subparagraph (A) or with-
out having entered into such an agreement.
‘‘(d) RESPONSIBILITIES OF THE COMMISSIONER.—
‘‘(1) SELECTION AND QUALIFICATIONS OF PRO-
GRAM MANAGERS.—The Commissioner shall enter into
agreements with 1 or more organizations in the pri-
vate or public sector for service as a program man-
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ager to assist the Commissioner in administering the
Program. Any such program manager shall be se-
lected by means of a competitive bidding process,
from among organizations in the private or public
sector with available expertise and experience in the
field of vocational rehabilitation and employment
services.
‘‘(2) TENURE, RENEWAL, AND
EARLY
TERMI-
NATION.—Each agreement entered into under para-
graph (1) shall provide for early termination upon
failure to meet performance standards which shall be
specified in the agreement and which shall be weight-
ed to take into account any performance in prior
terms. Such performance standards shall include—
‘‘(A) measures for ease of access by bene-
ficiaries to services; and
‘‘(B) measures for determining the extent to
which failures in obtaining services for bene-
ficiaries fall within acceptable parameters, as de-
termined by the Commissioner.
‘‘(3) PRECLUSION FROM DIRECT PARTICIPATION
IN DELIVERY OF SERVICES IN OWN SERVICE AREA.—
Agreements under paragraph (1) shall preclude—
‘‘(A) direct participation by a program
manager in the delivery of employment services,
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vocational rehabilitation services, or other sup-
port services to beneficiaries in the service area
covered by the program manager’s agreement;
and
‘‘(B) the holding by a program manager of
a financial interest in an employment network
or service provider which provides services in a
geographic area covered under the program man-
ager’s agreement.
‘‘(4) SELECTION OF EMPLOYMENT NETWORKS.—
‘‘(A) IN GENERAL.—The Commissioner shall
select and enter into agreements with employ-
ment networks for service under the Program.
Such employment networks shall be in addition
to State agencies serving as employment net-
works pursuant to elections under subsection (c).
‘‘(B) ALTERNATE
PARTICIPANTS.—In any
State where the Program is being implemented,
the Commissioner shall enter into an agreement
with any alternate participant that is operating
under the authority of section 222(d)(2) in the
State as of the date of enactment of this section
and chooses to serve as an employment network
under the Program.
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‘‘(5) TERMINATION OF AGREEMENTS WITH EM-
PLOYMENT NETWORKS.—The Commissioner shall ter-
minate agreements with employment networks for in-
adequate performance, as determined by the Commis-
sioner.
‘‘(6) QUALITY ASSURANCE.—The Commissioner
shall provide for such periodic reviews as are nec-
essary to provide for effective quality assurance in the
provision of services by employment networks. The
Commissioner shall solicit and consider the views of
consumers and the program manager under which the
employment networks serve and shall consult with
providers of services to develop performance measure-
ments. The Commissioner shall ensure that the results
of the periodic reviews are made available to bene-
ficiaries who are prospective service recipients as they
select employment networks. The Commissioner shall
ensure that the periodic surveys of beneficiaries re-
ceiving services under the Program are designed to
measure customer service satisfaction.
‘‘(7) DISPUTE RESOLUTION.—The Commissioner
shall provide for a mechanism for resolving disputes
between beneficiaries and employment networks, be-
tween program managers and employment networks,
and between program managers and providers of
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services. The Commissioner shall afford a party to
such a dispute a reasonable opportunity for a full
and fair review of the matter in dispute.
‘‘(e) PROGRAM MANAGERS.—
‘‘(1) IN GENERAL.—A program manager shall
conduct tasks appropriate to assist the Commissioner
in carrying out the Commissioner’s duties in admin-
istering the Program.
‘‘(2) 
RECRUITMENT
OF
EMPLOYMENT
NET-
WORKS.—A program manager shall recruit, and rec-
ommend for selection by the Commissioner, employ-
ment networks for service under the Program. The
program manager shall carry out such recruitment
and provide such recommendations, and shall mon-
itor all employment networks serving in the Program
in the geographic area covered under the program
manager’s agreement, to the extent necessary and ap-
propriate to ensure that adequate choices of services
are made available to beneficiaries. Employment net-
works may serve under the Program only pursuant to
an agreement entered into with the Commissioner
under the Program incorporating the applicable pro-
visions of this section and regulations thereunder, and
the program manager shall provide and maintain as-
surances to the Commissioner that payment by the
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Commissioner to employment networks pursuant to
this section is warranted based on compliance by such
employment networks with the terms of such agree-
ment and this section. The program manager shall
not impose numerical limits on the number of em-
ployment networks to be recommended pursuant to
this paragraph.
‘‘(3) 
FACILITATION
OF
ACCESS
BY
BENE-
FICIARIES TO EMPLOYMENT NETWORKS.—A program
manager shall facilitate access by beneficiaries to em-
ployment networks. The program manager shall en-
sure that each beneficiary is allowed changes in em-
ployment networks for good cause, as determined by
the Commissioner, without being deemed to have re-
jected services under the Program. The program man-
ager shall establish and maintain lists of employment
networks available to beneficiaries and shall make
such lists generally available to the public. The pro-
gram manager shall ensure that all information pro-
vided to disabled beneficiaries pursuant to this para-
graph is provided in accessible formats.
‘‘(4) ENSURING
AVAILABILITY
OF
ADEQUATE
SERVICES.—The program manager shall ensure that
employment services, vocational rehabilitation serv-
ices, and other support services are provided to bene-
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ficiaries throughout the geographic area covered under
the program manager’s agreement, including rural
areas.
‘‘(5) REASONABLE ACCESS TO SERVICES.—The
program manager shall take such measures as are
necessary to ensure that sufficient employment net-
works are available and that each beneficiary receiv-
ing services under the Program has reasonable access
to employment services, vocational rehabilitation serv-
ices, and other support services. Services provided
under the Program may include case management,
work incentives planning, supported employment, ca-
reer planning, career plan development, vocational
assessment, job training, placement, followup services,
and such other services as may be specified by the
Commissioner under the Program. The program man-
ager shall ensure that such services are available in
each service area.
‘‘(f) EMPLOYMENT NETWORKS.—
‘‘(1) QUALIFICATIONS
FOR
EMPLOYMENT
NET-
WORKS.—
‘‘(A) IN GENERAL.—Each employment net-
work serving under the Program shall consist of
an agency or instrumentality of a State (or a
political subdivision thereof) or a private entity
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that assumes responsibility for the coordination
and delivery of services under the Program to in-
dividuals assigning to the employment network
tickets to work and self-sufficiency issued under
subsection (b).
‘‘(B) ONE-STOP
DELIVERY
SYSTEMS.—An
employment network serving under the Program
may consist of a one-stop delivery system estab-
lished under subtitle B of title I of the Workforce
Investment Act of 1998.
‘‘(C) COMPLIANCE
WITH
SELECTION
CRI-
TERIA.—No employment network may serve
under the Program unless it meets and main-
tains compliance with both general selection cri-
teria (such as professional and educational
qualifications (where applicable)) and specific
selection criteria (such as substantial expertise
and experience in providing relevant employ-
ment services and supports).
‘‘(D) SINGLE
OR
ASSOCIATED
PROVIDERS
ALLOWED.—An employment network shall con-
sist of either a single provider of such services or
of an association of such providers organized so
as to combine their resources into a single entity.
An employment network may meet the require-
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ments of subsection (e)(4) by providing services
directly, or by entering into agreements with
other individuals or entities providing appro-
priate employment services, vocational rehabili-
tation services, or other support services.
‘‘(2) REQUIREMENTS RELATING TO PROVISION OF
SERVICES.—Each employment network serving under
the Program shall be required under the terms of its
agreement with the Commissioner to—
‘‘(A) serve prescribed service areas; and
‘‘(B) take such measures as are necessary to
ensure that employment services, vocational re-
habilitation services, and other support services
provided under the Program by, or under agree-
ments entered into with, the employment network
are provided under appropriate individual work
plans meeting the requirements of subsection (g).
‘‘(3) ANNUAL FINANCIAL REPORTING.—Each em-
ployment network shall meet financial reporting re-
quirements as prescribed by the Commissioner.
‘‘(4) PERIODIC
OUTCOMES
REPORTING.—Each
employment network shall prepare periodic reports,
on at least an annual basis, itemizing for the covered
period specific outcomes achieved with respect to spe-
cific services provided by the employment network.
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Such reports shall conform to a national model pre-
scribed under this section. Each employment network
shall provide a copy of the latest report issued by the
employment network pursuant to this paragraph to
each beneficiary upon enrollment under the Program
for services to be received through such employment
network. Upon issuance of each report to each bene-
ficiary, a copy of the report shall be maintained in
the files of the employment network. The program
manager shall ensure that copies of all such reports
issued under this paragraph are made available to the
public under reasonable terms.
‘‘(g) INDIVIDUAL WORK PLANS.—
‘‘(1) REQUIREMENTS.—Each employment net-
work shall—
‘‘(A) take such measures as are necessary to
ensure that employment services, vocational re-
habilitation services, and other support services
provided under the Program by, or under agree-
ments entered into with, the employment network
are provided under appropriate individual work
plans that meet the requirements of subpara-
graph (C);
‘‘(B) develop and implement each such indi-
vidual work plan in partnership with each bene-
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ficiary receiving such services in a manner that
affords the beneficiary the opportunity to exer-
cise informed choice in selecting an employment
goal and specific services needed to achieve that
employment goal;
‘‘(C) ensure that each individual work plan
includes at least—
‘‘(i) a statement of the vocational goal
developed with the beneficiary;
‘‘(ii) a statement of the services and
supports that have been deemed necessary
for the beneficiary to accomplish that goal;
‘‘(iii) a statement of any terms and
conditions related to the provision of such
services and supports; and
‘‘(iv) a statement of understanding re-
garding the beneficiary’s rights under the
Program (such as the right to retrieve the
ticket to work and self-sufficiency if the ben-
eficiary is dissatisfied with the services
being provided by the employment network)
and remedies available to the individual,
including information on the availability of
advocacy services and assistance in resolv-
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ing disputes through the State grant pro-
gram authorized under section 1150;
‘‘(D) provide a beneficiary the opportunity
to amend the individual work plan if a change
in circumstances necessitates a change in the
plan; and
‘‘(E) make each beneficiary’s individual
work plan available to the beneficiary in, as ap-
propriate, an accessible format chosen by the
beneficiary.
‘‘(2) EFFECTIVE UPON WRITTEN APPROVAL.—A
beneficiary’s individual work plan shall take effect
upon written approval by the beneficiary or a rep-
resentative of the beneficiary and a representative of
the employment network that, in providing such writ-
ten approval, acknowledges assignment of the bene-
ficiary’s ticket to work and self-sufficiency.
‘‘(h) EMPLOYMENT NETWORK PAYMENT SYSTEMS.—
‘‘(1) ELECTION
OF
PAYMENT
SYSTEM
BY
EM-
PLOYMENT NETWORKS.—
‘‘(A) IN GENERAL.—The Program shall pro-
vide for payment authorized by the Commis-
sioner to employment networks under either an
outcome payment system or an outcome-mile-
stone payment system. Each employment net-
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work shall elect which payment system will be
utilized by the employment network, and, for
such period of time as such election remains in
effect, the payment system so elected shall be uti-
lized exclusively in connection with such employ-
ment network (except as provided in subpara-
graph (B)).
‘‘(B) NO CHANGE IN METHOD OF PAYMENT
FOR BENEFICIARIES WITH TICKETS ALREADY AS-
SIGNED TO THE EMPLOYMENT NETWORKS.—Any
election of a payment system by an employment
network that would result in a change in the
method of payment to the employment network
for services provided to a beneficiary who is re-
ceiving services from the employment network at
the time of the election shall not be effective with
respect to payment for services provided to that
beneficiary and the method of payment pre-
viously selected shall continue to apply with re-
spect to such services.
‘‘(2) OUTCOME PAYMENT SYSTEM.—
‘‘(A) IN GENERAL.—The outcome payment
system shall consist of a payment structure gov-
erning employment networks electing such sys-
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tem under paragraph (1)(A) which meets the re-
quirements of this paragraph.
‘‘(B) PAYMENTS
MADE
DURING
OUTCOME
PAYMENT PERIOD.—The outcome payment sys-
tem shall provide for a schedule of payments to
an employment network in connection with each
individual who is a beneficiary for each month
during the individual’s outcome payment period
for which benefits (described in paragraphs (3)
and (4) of subsection (k)) are not payable to such
individual because of work or earnings.
‘‘(C) COMPUTATION OF PAYMENTS TO EM-
PLOYMENT NETWORK.—The payment schedule of
the outcome payment system shall be designed so
that—
‘‘(i) the payment for each of the 60
months during the outcome payment period
for which benefits (described in paragraphs
(3) and (4) of subsection (k)) are not pay-
able is equal to a fixed percentage of the
payment calculation base for the calendar
year in which such month occurs; and
‘‘(ii) such fixed percentage is set at a
percentage which does not exceed 40 percent.
‘‘(3) OUTCOME-MILESTONE PAYMENT SYSTEM.—
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‘‘(A) IN GENERAL.—The outcome-milestone
payment system shall consist of a payment
structure governing employment networks elect-
ing such system under paragraph (1)(A) which
meets the requirements of this paragraph.
‘‘(B) EARLY PAYMENTS UPON ATTAINMENT
OF MILESTONES IN ADVANCE OF OUTCOME PAY-
MENT
PERIODS.—The outcome-milestone pay-
ment system shall provide for 1 or more mile-
stones with respect to beneficiaries receiving serv-
ices from an employment network under the Pro-
gram that are directed toward the goal of perma-
nent employment. Such milestones shall form a
part of a payment structure that provides, in
addition to payments made during outcome pay-
ment periods, payments made prior to outcome
payment periods in amounts based on the at-
tainment of such milestones.
‘‘(C) LIMITATION ON TOTAL PAYMENTS TO
EMPLOYMENT NETWORK.—The payment schedule
of the outcome-milestone payment system shall be
designed so that the total of the payments to the
employment network with respect to each bene-
ficiary is less than, on a net present value basis
(using an interest rate determined by the Com-
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missioner that appropriately reflects the cost of
funds faced by providers), the total amount to
which payments to the employment network with
respect to the beneficiary would be limited if the
employment network were paid under the out-
come payment system.
‘‘(4) DEFINITIONS.—In this subsection:
‘‘(A) PAYMENT
CALCULATION
BASE.—The
term ‘payment calculation base’ means, for any
calendar year—
‘‘(i) in connection with a title II dis-
ability beneficiary, the average disability
insurance benefit payable under section 223
for all beneficiaries for months during the
preceding calendar year; and
‘‘(ii) in connection with a title XVI
disability beneficiary (who is not concur-
rently a title II disability beneficiary), the
average payment of supplemental security
income benefits based on disability payable
under title XVI (excluding State supplemen-
tation) for months during the preceding cal-
endar year to all beneficiaries who have at-
tained age 18 but have not attained age 65.
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‘‘(B) OUTCOME
PAYMENT
PERIOD.—The
term ‘outcome payment period’ means, in con-
nection with any individual who had assigned a
ticket to work and self-sufficiency to an employ-
ment network under the Program, a period—
‘‘(i) beginning with the first month,
ending after the date on which such ticket
was assigned to the employment network,
for which benefits (described in paragraphs
(3) and (4) of subsection (k)) are not pay-
able to such individual by reason of engage-
ment in substantial gainful activity or by
reason of earnings from work activity; and
‘‘(ii) ending with the 60th month (con-
secutive or otherwise), ending after such
date, for which such benefits are not pay-
able to such individual by reason of engage-
ment in substantial gainful activity or by
reason of earnings from work activity.
‘‘(5) PERIODIC
REVIEW
AND
ALTERATIONS
OF
PRESCRIBED SCHEDULES.—
‘‘(A) PERCENTAGES
AND
PERIODS.—The
Commissioner shall periodically review the per-
centage specified in paragraph (2)(C), the total
payments permissible under paragraph (3)(C),
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and the period of time specified in paragraph
(4)(B) to determine whether such percentages,
such permissible payments, and such period pro-
vide an adequate incentive for employment net-
works to assist beneficiaries to enter the work-
force, while providing for appropriate economies.
The Commissioner may alter such percentage,
such total permissible payments, or such period
of time to the extent that the Commissioner de-
termines, on the basis of the Commissioner’s re-
view under this paragraph, that such an alter-
ation would better provide the incentive and
economies described in the preceding sentence.
‘‘(B) NUMBER AND AMOUNTS OF MILESTONE
PAYMENTS.—The Commissioner shall periodi-
cally review the number and amounts of mile-
stone payments established by the Commissioner
pursuant to this section to determine whether
they provide an adequate incentive for employ-
ment networks to assist beneficiaries to enter the
workforce, taking into account information pro-
vided to the Commissioner by program man-
agers, the Work Incentives Advisory Panel estab-
lished under section 201(f) of the Work Incen-
tives Improvement Act of 1999, and other reli-
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able sources. The Commissioner may from time
to time alter the number and amounts of mile-
stone payments initially established by the Com-
missioner pursuant to this section to the extent
that the Commissioner determines that such an
alteration would allow an adequate incentive for
employment networks to assist beneficiaries to
enter the workforce. Such alteration shall be
based on information provided to the Commis-
sioner by program managers, the Work Incen-
tives Advisory Panel established under section
201(f) of the Work Incentives Improvement Act
of 1999, or other reliable sources.
‘‘(i) SUSPENSION OF DISABILITY REVIEWS.—During
any period for which an individual is using, as defined
by the Commissioner, a ticket to work and self-sufficiency
issued under this section, the Commissioner (and any ap-
plicable State agency) may not initiate a continuing dis-
ability review or other review under section 221 of whether
the individual is or is not under a disability or a review
under title XVI similar to any such review under section
221.
‘‘(j) ALLOCATION OF COSTS.—
‘‘(1) PAYMENTS TO EMPLOYMENT NETWORKS.—
Payments to employment networks (including State
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agencies that elect to participate in the Program as
an employment network) shall be made from the Fed-
eral Old-Age and Survivors Insurance Trust Fund or
the Federal Disability Insurance Trust Fund, as ap-
propriate, in the case of ticketed title II disability
beneficiaries who return to work, or from the appro-
priation made available for making supplemental se-
curity income payments under title XVI, in the case
of title XVI disability beneficiaries who return to
work. With respect to ticketed beneficiaries who con-
currently are entitled to benefits under title II and el-
igible for payments under title XVI who return to
work, the Commissioner shall allocate the cost of pay-
ments to employment networks to which the tickets of
such beneficiaries have been assigned among such
Trust Funds and appropriation, as appropriate.
‘‘(2) ADMINISTRATIVE EXPENSES.—The costs of
administering this section (other than payments to
employment networks) shall be paid from amounts
made available for the administration of title II and
amounts made available for the administration of
title XVI, and shall be allocated among those amounts
as appropriate.
‘‘(k) DEFINITIONS.—In this section:
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‘‘(1) COMMISSIONER.—The term ‘Commissioner’
means the Commissioner of Social Security.
‘‘(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 indi-
vidual eligible for supplemental security income bene-
fits under title XVI on the basis of blindness (within
the meaning of section 1614(a)(2)) or disability
(within the meaning of section 1614(a)(3)). An indi-
vidual is a title XVI disability beneficiary for each
month for which such individual is eligible for such
benefits.
‘‘(5) SUPPLEMENTAL SECURITY INCOME BENEFIT
UNDER TITLE XVI.—The term ‘supplemental security
income benefit under title XVI’ means a cash benefit
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under section 1611 or 1619(a), and does not include
a State supplementary payment, administered feder-
ally 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.’’.
(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 Security
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 Tick-
et to Work and Self-Sufficiency Program under
section 1148 or another program of vocational
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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 Se-
curity Act (42 U.S.C. 1383(a)(6)(A)) is amended
by striking ‘‘a program of vocational rehabilita-
tion services’’ and inserting ‘‘a program con-
sisting of the Ticket to Work and Self-Sufficiency
Program under section 1148 or another program
of vocational rehabilitation services, employment
services, or other support services’’.
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(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 following:
‘‘(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 ef-
fect 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 Tick-
et to Work and Self-Sufficiency Program, the develop-
ment and refinement of referral processes, payment
systems, computer linkages, management information
systems, and administrative processes necessary to
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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 evaluation
of the alternative methods under consideration, so as
to ensure that the most efficacious methods are deter-
mined and in place for full implementation of the
Program on a timely basis.
(3) FULL IMPLEMENTATION.—The Commissioner
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 ef-
fective 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 as-
sess the cost-effectiveness of activities carried out
under this section and the amendments made
thereby, as well as the effects of this section and
the amendments made thereby on work outcomes
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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 experts
in the fields of disability, vocational rehabilita-
tion, and program evaluation and individuals
using tickets to work and self-sufficiency under
the Program and consulting with the Work In-
centives Advisory Panel established under section
201(f), the Comptroller General of the United
States, other agencies of the Federal Government,
and private organizations with appropriate ex-
pertise.
(C) METHODOLOGY.—
(i) IMPLEMENTATION.—The Commis-
sioner, in consultation with the Work Incen-
tives Advisory Panel established under sec-
tion 201(f), shall ensure that plans for eval-
uations and data collection methods under
the Program are appropriately designed to
obtain detailed employment information.
(ii) SPECIFIC
MATTERS
TO
BE
AD-
DRESSED.—Each such evaluation shall ad-
dress (but is not limited to)—
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(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 return
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-
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ment networks of furnishing such serv-
ices;
(V) the employment outcomes, in-
cluding wages, occupations, benefits,
and hours worked, of beneficiaries who
return to work after receiving tickets
under the Program and those who re-
turn 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 greater
willingness to provide services to bene-
ficiaries with a range of disabilities;
(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;
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(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.—Fol-
lowing the close of the third and fifth fiscal years
ending after the effective date under subsection
(c), and prior to the close of the seventh fiscal
year ending after such date, the Commissioner
shall transmit to the Committee on Ways and
Means of the House of Representatives and the
Committee on Finance of the Senate a report
containing the Commissioner’s evaluation of the
progress of activities conducted under the provi-
sions 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 Com-
missioner’s conclusions on whether or how the
Program should be modified. Each such report
shall include such data, findings, materials, and
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recommendations as the Commissioner may con-
sider 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 subsection (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 con-
tract with other public or private agencies,
organizations, institutions, or individuals,
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
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Security Act before the date of enactment of this
Act with respect to services provided pursuant 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 REG-
ULATIONS.—The matters which shall be addressed 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 tickets,
which shall incorporate by reference any contrac-
tual terms governing service by employment net-
works under the Program;
(C) the form and manner in which State
agencies may elect participation in the Ticket to
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Work and Self-Sufficiency Program (and revoke
such an election) pursuant to section 1148(c)(1)
of the Social Security Act and provision for
periodic opportunities for exercising such elec-
tions (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 section
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 meth-
ods of recruitment of employment networks
utilized pursuant to paragraph (2) of sec-
tion 1148(e); and
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(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 sec-
tion 1148(f)(1)(C) of the Social Security
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 net-
works 
must 
conform 
under 
section
1148(f)(4) of the Social Security Act;
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(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 elec-
tions by employment networks of payment
systems are to be exercised pursuant to sec-
tion 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-
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rity, including periodic reviews and reporting
requirements.
(f) WORK INCENTIVES ADVISORY PANEL.—
(1) ESTABLISHMENT.—There is established with-
in 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 President, Congress, and the
Commissioner of Social Security on issues re-
lated to work incentives programs, planning,
and assistance for individuals with disabilities,
including work incentive provisions under titles
II, XI, XVI, XVIII, and XIX of the Social Secu-
rity 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 refine-
ment of access of disabled beneficiaries to
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employment networks, payment systems,
and management information systems, and
advise the Commissioner whether such
measures are being taken to the extent nec-
essary to ensure the success of the Program;
(ii) advise the Commissioner regarding
the most effective designs for research and
demonstration projects associated with the
Program or conducted pursuant to section
302;
(iii) advise the Commissioner on the
development of performance measurements
relating to quality assurance under section
1148(d)(6) of the Social Security Act; and
(iv) furnish progress reports on the
Program to the Commissioner and each
House of Congress.
(3) MEMBERSHIP.—
(A) 
NUMBER
AND
APPOINTMENT.—The
Panel shall be composed of 12 members ap-
pointed as follows:
(i) 4 members appointed by the Presi-
dent.
(ii) 2 members appointed by the
Speaker of the House of Representatives, in
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consultation with the chairman of the Com-
mittee on Ways and Means of the House of
Representatives.
(iii) 2 members appointed by the Mi-
nority Leader of the House of Representa-
tives, in consultation with the ranking
member of the Committee on Ways and
Means of the House of Representatives.
(iv) 2 members appointed by the Ma-
jority Leader of the Senate, in consultation
with the chairman of the Committee on Fi-
nance of the Senate.
(v) 2 members appointed by the Minor-
ity Leader of the Senate, in consultation
with the ranking member of the Committee
on Finance of the Senate.
(B) REPRESENTATION.—All members ap-
pointed to the Panel shall have experience or ex-
pert 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 one-half of the
members described in each clause of subpara-
graph (A) shall be individuals with disabilities,
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or representatives of individuals with disabil-
ities, with consideration to current or former
title II disability beneficiaries or title XVI dis-
ability beneficiaries (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), ex-
cept 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.
(ii) TERMS OF INITIAL APPOINTEES.—
As designated by the Commissioner at the
time of appointment, of the members first
appointed—
(I) one-half of the members ap-
pointed under each clause of subpara-
graph (A) shall be appointed for a
term of 2 years; and
(II) the remaining members ap-
pointed under each such clause shall be
appointed for a term of 4 years.
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(iii) VACANCIES.—Any member ap-
pointed to fill a vacancy occurring before
the expiration of the term for which the
member’s predecessor was appointed shall be
appointed only for the remainder of that
term. A member may serve after the expira-
tion of that member’s term until a successor
has taken office. A vacancy in the Panel
shall be filled in the manner in which the
original appointment was made.
(D) BASIC
PAY.—Members shall each be
paid at a rate, and in a manner, that is con-
sistent with guidelines established under section
7 of the Federal Advisory Committee Act (5
U.S.C. App.).
(E) TRAVEL
EXPENSES.—Each member
shall receive travel expenses, including per diem
in lieu of subsistence, in accordance with sections
5702 and 5703 of title 5, United States Code.
(F) QUORUM.—Eight members of the Panel
shall constitute a quorum but a lesser number
may hold hearings.
(G) CHAIRPERSON.—The Chairperson of the
Panel shall be designated by the President. The
term of office of the Chairperson shall be 4 years.
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(H) MEETINGS.—The Panel shall meet at
least quarterly and at other times at the call of
the Chairperson or a majority of its members.
(4) DIRECTOR AND STAFF OF PANEL; EXPERTS
AND CONSULTANTS.—
(A) DIRECTOR.—The Panel shall have a Di-
rector who shall be appointed by the Commis-
sioner and paid at a rate, and in a manner,
that is consistent with guidelines established
under section 7 of the Federal Advisory Com-
mittee Act (5 U.S.C. App.).
(B) STAFF.—Subject to rules prescribed by
the Commissioner, the Director may appoint and
fix the pay of additional personnel as the Direc-
tor considers appropriate.
(C) EXPERTS AND CONSULTANTS.—Subject
to rules prescribed by the Commissioner, the Di-
rector may procure temporary and intermittent
services under section 3109(b) of title 5, United
States Code.
(D) STAFF OF FEDERAL AGENCIES.—Upon
request of the Panel, the head of any Federal de-
partment or agency may detail, on a reimburs-
able basis, any of the personnel of that depart-
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ment or agency to the Panel to assist it in car-
rying out its duties under this subsection.
(5) POWERS OF PANEL.—
(A) HEARINGS AND SESSIONS.—The Panel
may, for the purpose of carrying out its duties
under this subsection, hold such hearings, sit and
act at such times and places, and take such testi-
mony and evidence as the Panel considers appro-
priate.
(B) POWERS OF MEMBERS AND AGENTS.—
Any member or agent of the Panel may, if au-
thorized by the Panel, take any action which the
Panel is authorized to take by this subsection.
(C) MAILS.—The Panel may use the United
States mails in the same manner and under the
same conditions as other departments and agen-
cies of the United States.
(6) REPORTS.—
(A) INTERIM
REPORTS.—The Panel shall
submit directly to the President and Congress in-
terim reports at least annually.
(B) FINAL REPORT.—The Panel shall trans-
mit a final report directly to the President and
Congress not later than 8 years after the date of
enactment of this Act. The final report shall con-
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tain a detailed statement of the findings and
conclusions of the Panel, together with its rec-
ommendations for legislation and administrative
actions which the Panel considers appropriate.
(7) TERMINATION.—The Panel shall terminate
30 days after the date of the submission of its final
report under paragraph (6)(B).
(8) ALLOCATION OF COSTS.—The costs of car-
rying out this subsection shall be paid from amounts
made available for the administration of title II of
the Social Security Act (42 U.S.C. 401 et seq.) and
amounts made available for the administration of
title XVI of that Act (42 U.S.C. 1381 et seq.), and
shall be allocated among those amounts as appro-
priate.
Subtitle B—Elimination of Work
Disincentives
SEC. 211. WORK ACTIVITY STANDARD AS A BASIS FOR RE-
VIEW OF AN INDIVIDUAL’S DISABLED STATUS.
Section 221 of the Social Security Act (42 U.S.C. 421)
is amended by adding at the end the following:
‘‘(m)(1) In any case where an individual entitled to
disability insurance benefits under section 223 or to month-
ly insurance benefits under section 202 based on such indi-
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vidual’s disability (as defined in section 223(d)) has re-
ceived such benefits for at least 24 months—
‘‘(A) no continuing disability review conducted
by the Commissioner may be scheduled for the indi-
vidual solely as a result of the individual’s work ac-
tivity;
‘‘(B) no work activity engaged in by the indi-
vidual may be used as evidence that the individual is
no longer disabled; and
‘‘(C) no cessation of work activity by the indi-
vidual may give rise to a presumption that the indi-
vidual is unable to engage in work.
‘‘(2) An individual to which paragraph (1) applies
shall continue to be subject to—
‘‘(A) continuing disability reviews on a regu-
larly scheduled basis that is not triggered by work;
and
‘‘(B) termination of benefits under this title in
the event that the individual has earnings that exceed
the level of earnings established by the Commissioner
to represent substantial gainful activity.’’.
SEC. 212. EXPEDITED REINSTATEMENT OF DISABILITY BEN-
EFITS.
(a) OASDI BENEFITS.—Section 223 of the Social Se-
curity Act (42 U.S.C. 423) is amended—
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(1) by redesignating subsection (i) as subsection
(j); and
(2) by inserting after subsection (h) the fol-
lowing:
‘‘Reinstatement of Entitlement
‘‘(i)(1)(A) Entitlement to benefits described in sub-
paragraph (B)(i)(I) shall be reinstated in any case where
the Commissioner determines that an individual described
in subparagraph (B) has filed a request for reinstatement
meeting the requirements of paragraph (2)(A) during the
period prescribed in subparagraph (C). Reinstatement of
such entitlement shall be in accordance with the terms of
this subsection.
‘‘(B) An individual is described in this subparagraph
if—
‘‘(i) prior to the month in which the individual
files a request for reinstatement—
‘‘(I) the individual was entitled to benefits
under this section or section 202 on the basis of
disability pursuant to an application filed there-
fore; and
‘‘(II) such entitlement terminated due to the
performance of substantial gainful activity;
‘‘(ii) the individual is under a disability and the
physical or mental impairment that is the basis for
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the finding of disability is the same as (or related to)
the physical or mental impairment that was the basis
for the finding of disability that gave rise to the enti-
tlement described in clause (i); and
‘‘(iii) the individual’s disability renders the in-
dividual unable to perform substantial gainful activ-
ity.
‘‘(C)(i) Except as provided in clause (ii), the period
prescribed in this subparagraph with respect to an indi-
vidual is 60 consecutive months beginning with the month
following the most recent month for which the individual
was entitled to a benefit described in subparagraph
(B)(i)(I) prior to the entitlement termination described in
subparagraph (B)(i)(II).
‘‘(ii) In the case of an individual who fails to file a
reinstatement request within the period prescribed in clause
(i), the Commissioner may extend the period if the Commis-
sioner determines that the individual had good cause for
the failure to so file.
‘‘(2)(A)(i) A request for reinstatement shall be filed in
such form, and containing such information, as the Com-
missioner may prescribe.
‘‘(ii) A request for reinstatement shall include express
declarations by the individual that the individual meets the
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requirements specified in clauses (ii) and (iii) of paragraph
(1)(B).
‘‘(B) A request for reinstatement filed in accordance
with subparagraph (A) may constitute an application for
benefits in the case of any individual who the Commissioner
determines is not entitled to reinstated benefits under this
subsection.
‘‘(3) In determining whether an individual meets the
requirements of paragraph (1)(B)(ii), the provisions of sub-
section (f) shall apply.
‘‘(4)(A)(i) Subject to clause (ii), entitlement to benefits
reinstated under this subsection shall commence with the
benefit payable for the month in which a request for rein-
statement is filed.
‘‘(ii) An individual whose entitlement to a benefit for
any month would have been reinstated under this subsection
had the individual filed a request for reinstatement before
the end of such month shall be entitled to such benefit for
such month if such request for reinstatement is filed before
the end of the twelfth month immediately succeeding such
month.
‘‘(B)(i) Subject to clauses (ii) and (iii), the amount
of the benefit payable for any month pursuant to the rein-
statement of entitlement under this subsection shall be deter-
mined in accordance with the provisions of this title.
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‘‘(ii) For purposes of computing the primary insur-
ance amount of an individual whose entitlement to benefits
under this section is reinstated under this subsection, the
date of onset of the individual’s disability shall be the date
of onset used in determining the individual’s most recent
period of disability arising in connection with such benefits
payable on the basis of an application.
‘‘(iii) Benefits under this section or section 202 pay-
able for any month pursuant to a request for reinstatement
filed in accordance with paragraph (2) shall be reduced by
the amount of any provisional benefit paid to such indi-
vidual for such month under paragraph (7).
‘‘(C) No benefit shall be payable pursuant to an enti-
tlement reinstated under this subsection to an individual
for any month in which the individual engages in substan-
tial gainful activity.
‘‘(D) The entitlement of any individual that is rein-
stated under this subsection shall end with the benefits pay-
able for the month preceding whichever of the following
months is the earliest:
‘‘(i) The month in which the individual dies.
‘‘(ii) The month in which the individual attains
retirement age.
‘‘(iii) The third month following the month in
which the individual’s disability ceases.
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‘‘(5) Whenever an individual’s entitlement to benefits
under this section is reinstated under this subsection, enti-
tlement to benefits payable on the basis of such individual’s
wages and self-employment income may be reinstated with
respect to any person previously entitled to such benefits
on the basis of an application if the Commissioner deter-
mines that such person satisfies all the requirements for en-
titlement to such benefits except requirements related to the
filing of an application. The provisions of paragraph (4)
shall apply to the reinstated entitlement of any such person
to the same extent that they apply to the reinstated entitle-
ment of such individual.
‘‘(6) An individual to whom benefits are payable under
this section or section 202 pursuant to a reinstatement of
entitlement under this subsection for 24 months (whether
or not consecutive) shall, with respect to benefits so payable
after such twenty-fourth month, be deemed for purposes of
paragraph (1)(B)(i)(I) and the determination, if appro-
priate, of the termination month in accordance with sub-
section (a)(1) of this section, or subsection (d)(1), (e)(1),
or (f)(1) of section 202, to be entitled to such benefits on
the basis of an application filed therefore.
‘‘(7)(A) An individual described in paragraph (1)(B)
who files a request for reinstatement in accordance with the
provisions of paragraph (2)(A) shall be entitled to provi-
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sional benefits payable in accordance with this paragraph,
unless the Commissioner determines that the individual
does not meet the requirements of paragraph (1)(B)(i) or
that 
the 
individual’s 
declaration 
under 
paragraph
(2)(A)(ii) is false. Any such determination by the Commis-
sioner shall be final and not subject to review under sub-
section (b) or (g) of section 205.
‘‘(B) The amount of a provisional benefit for a month
shall equal the amount of the last monthly benefit payable
to the individual under this title on the basis of an applica-
tion increased by an amount equal to the amount, if any,
by which such last monthly benefit would have been in-
creased as a result of the operation of section 215(i).
‘‘(C)(i) Provisional benefits shall begin with the month
in which a request for reinstatement is filed in accordance
with paragraph (2)(A).
‘‘(ii) Provisional benefits shall end with the earliest
of—
‘‘(I) the month in which the Commissioner
makes a determination regarding the individual’s en-
titlement to reinstated benefits;
‘‘(II) the fifth month following the month de-
scribed in clause (i);
‘‘(III) the month in which the individual per-
forms substantial gainful activity; or
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‘‘(IV) the month in which the Commissioner de-
termines that the individual does not meet the re-
quirements of paragraph (1)(B)(i) or that the indi-
vidual’s declaration made in accordance with para-
graph (2)(A)(ii) is false.
‘‘(D) In any case in which the Commissioner deter-
mines that an individual is not entitled to reinstated bene-
fits, any provisional benefits paid to the individual under
this paragraph shall not be subject to recovery as an over-
payment unless the Commissioner determines that the indi-
vidual knew or should have known that the individual did
not meet the requirements of paragraph (1)(B).’’.
(b) SSI BENEFITS.—
(1) IN GENERAL.—Section 1631 of the Social Se-
curity Act (42 U.S.C. 1383) is amended by adding at
the end the following:
‘‘Reinstatement of Eligibility on the Basis of Blindness or
Disability
‘‘(p)(1)(A) Eligibility for benefits under this title shall
be reinstated in any case where the Commissioner deter-
mines that an individual described in subparagraph (B)
has filed a request for reinstatement meeting the require-
ments of paragraph (2)(A) during the period prescribed in
subparagraph (C). Reinstatement of eligibility shall be in
accordance with the terms of this subsection.
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‘‘(B) An individual is described in this subparagraph
if—
‘‘(i) prior to the month in which the individual
files a request for reinstatement—
‘‘(I) the individual was eligible for benefits
under this title on the basis of blindness or dis-
ability pursuant to an application filed there-
fore; and
‘‘(II) the individual thereafter was ineligible
for such benefits due to earned income (or earned
and unearned income) for a period of 12 or more
consecutive months;
‘‘(ii) the individual is blind or disabled and the
physical or mental impairment that is the basis for
the finding of blindness or disability is the same as
(or related to) the physical or mental impairment
that was the basis for the finding of blindness or dis-
ability that gave rise to the eligibility described in
clause (i);
‘‘(iii) the individual’s blindness or disability
renders the individual unable to perform substantial
gainful activity; and
‘‘(iv) the individual satisfies the nonmedical re-
quirements for eligibility for benefits under this title.
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‘‘(C)(i) Except as provided in clause (ii), the period
prescribed in this subparagraph with respect to an indi-
vidual is 60 consecutive months beginning with the month
following the most recent month for which the individual
was eligible for a benefit under this title (including section
1619) prior to the period of ineligibility described in sub-
paragraph (B)(i)(II).
‘‘(ii) In the case of an individual who fails to file a
reinstatement request within the period prescribed in clause
(i), the Commissioner may extend the period if the Commis-
sioner determines that the individual had good cause for
the failure to so file.
‘‘(2)(A)(i) A request for reinstatement shall be filed in
such form, and containing such information, as the Com-
missioner may prescribe.
‘‘(ii) A request for reinstatement shall include express
declarations by the individual that the individual meets the
requirements specified in clauses (ii) through (iv) of para-
graph (1)(B).
‘‘(B) A request for reinstatement filed in accordance
with subparagraph (A) may constitute an application for
benefits in the case of any individual who the Commissioner
determines is not eligible for reinstated benefits under this
subsection.
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‘‘(3) In determining whether an individual meets the
requirements of paragraph (1)(B)(ii), the provisions of sec-
tion 1614(a)(4) shall apply.
‘‘(4)(A) Eligibility for benefits reinstated under this
subsection shall commence with the benefit payable for the
month following the month in which a request for reinstate-
ment is filed.
‘‘(B)(i) Subject to clause (ii), the amount of the benefit
payable for any month pursuant to the reinstatement of eli-
gibility under this subsection shall be determined in accord-
ance with the provisions of this title.
‘‘(ii) The benefit under this title payable for any
month pursuant to a request for reinstatement filed in ac-
cordance with paragraph (2) shall be reduced by the
amount of any provisional benefit paid to such individual
for such month under paragraph (7).
‘‘(C) Except as otherwise provided in this subsection,
eligibility for benefits under this title reinstated pursuant
to a request filed under paragraph (2) shall be subject to
the same terms and conditions as eligibility established pur-
suant to an application filed therefore.
‘‘(5) Whenever an individual’s eligibility for benefits
under this title is reinstated under this subsection, eligi-
bility for such benefits shall be reinstated with respect to
the individual’s spouse if such spouse was previously an
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eligible spouse of the individual under this title and the
Commissioner determines that such spouse satisfies all the
requirements for eligibility for such benefits except require-
ments related to the filing of an application. The provisions
of paragraph (4) shall apply to the reinstated eligibility
of the spouse to the same extent that they apply to the rein-
stated eligibility of such individual.
‘‘(6) An individual to whom benefits are payable under
this title pursuant to a reinstatement of eligibility under
this subsection for twenty-four months (whether or not con-
secutive) shall, with respect to benefits so payable after such
twenty-fourth month, be deemed for purposes of paragraph
(1)(B)(i)(I) to be eligible for such benefits on the basis of
an application filed therefore.
‘‘(7)(A) An individual described in paragraph (1)(B)
who files a request for reinstatement in accordance with the
provisions of paragraph (2)(A) shall be eligible for provi-
sional benefits payable in accordance with this paragraph,
unless the Commissioner determines that the individual
does not meet the requirements of paragraph (1)(B)(i) or
that 
the 
individual’s 
declaration 
under 
paragraph
(2)(A)(ii) is false. Any such determination by the Commis-
sioner shall be final and not subject to review under para-
graph (1) or (3) of subsection (c).
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‘‘(B)(i) Except as otherwise provided in clause (ii), the
amount of a provisional benefit for a month shall equal the
amount of the monthly benefit that would be payable to an
eligible individual under this title with the same kind and
amount of income.
‘‘(ii) If the individual has a spouse who was previously
an eligible spouse of the individual under this title and the
Commissioner determines that such spouse satisfies all the
requirements of section 1614(b) except requirements related
to the filing of an application, the amount of a provisional
benefit for a month shall equal the amount of the month
benefit that would be payable to an eligible individual and
eligible spouse under this title with the same kind and
amount of income.
‘‘(C)(i) Provisional benefits shall begin with the month
following the month in which a request for reinstatement
is filed in accordance with paragraph (2)(A).
‘‘(ii) Provisional benefits shall end with the earliest
of—
‘‘(I) the month in which the Commissioner
makes a determination regarding the individual’s eli-
gibility for reinstated benefits;
‘‘(II) the fifth month following the month for
which provisional benefits are first payable under
clause (i); or
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‘‘(III) the month in which the Commissioner de-
termines that the individual does not meet the re-
quirements of paragraph (1)(B)(i) or that the indi-
vidual’s declaration made in accordance with para-
graph (2)(A)(ii) is false.
‘‘(D) In any case in which the Commissioner deter-
mines that an individual is not eligible for reinstated bene-
fits, any provisional benefits paid to the individual under
this paragraph shall not be subject to recovery as an over-
payment unless the Commissioner determines that the indi-
vidual knew or should have known that the individual did
not meet the requirements of paragraph (1)(B).
‘‘(8) For purposes of this subsection other than para-
graph (7), the term ‘benefits under this title’ includes State
supplementary payments made pursuant to an agreement
under section 1616(a) or section 212(b) of Public Law 93–
66.’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 1631(j)(1) of such Act (42
U.S.C. 1383(j)(1)) is amended by striking the pe-
riod and inserting ‘‘, or has filed a request for
reinstatement of eligibility under subsection
(p)(2) and been determined to be eligible for re-
instatement.’’.
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(B) Section 1631(j)(2)(A)(i)(I) of such Act
(42 U.S.C. 1383(j)(2)(A)(i)(I)) is amended by
inserting ‘‘(other than pursuant to a request for
reinstatement under subsection (p))’’ after ‘‘eligi-
ble’’.
(c) EFFECTIVE DATE.—
(1) IN
GENERAL.—The amendments made by
this section shall take effect on the first day of the
thirteenth month beginning after the date of enact-
ment of this Act.
(2) LIMITATION.—No benefit shall be payable
under title II or XVI of the Social Security Act on
the basis of a request for reinstatement filed under
section 223(i) or 1631(p) of such Act before the effec-
tive date described in paragraph (1).
Subtitle C—Work Incentives Plan-
ning, Assistance, and Outreach
SEC. 221. WORK INCENTIVES OUTREACH PROGRAM.
Part A of title XI of the Social Security Act (42 U.S.C.
1301 et seq.), as amended by section 201, is amended by
adding after section 1148 the following:
‘‘WORK INCENTIVES OUTREACH PROGRAM
‘‘SEC. 1149. (a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—The Commissioner, in con-
sultation with the Work Incentives Advisory Panel es-
tablished under section 201(f) of the Work Incentives
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Improvement Act of 1999, shall establish a commu-
nity-based work incentives planning and assistance
program for the purpose of disseminating accurate in-
formation to disabled beneficiaries on work incentives
programs and issues related to such programs.
‘‘(2) GRANTS, COOPERATIVE AGREEMENTS, CON-
TRACTS, AND OUTREACH.—Under the program estab-
lished under this section, the Commissioner shall—
‘‘(A) establish a competitive program of
grants, cooperative agreements, or contracts to
provide benefits planning and assistance, includ-
ing information on the availability of protection
and advocacy services, to disabled beneficiaries,
including individuals participating in the Ticket
to Work and Self-Sufficiency Program estab-
lished under section 1148, the program estab-
lished under section 1619, and other programs
that are designed to encourage disabled bene-
ficiaries to work;
‘‘(B) conduct directly, or through grants, co-
operative agreements, or contracts, ongoing out-
reach efforts to disabled beneficiaries (and to the
families of such beneficiaries) who are poten-
tially eligible to participate in Federal or State
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work incentive programs that are designed to as-
sist disabled beneficiaries to work, including—
‘‘(i) preparing and disseminating in-
formation explaining such programs; and
‘‘(ii) working in cooperation with other
Federal, State, and private agencies and
nonprofit organizations that serve disabled
beneficiaries, and with agencies and organi-
zations that focus on vocational rehabilita-
tion and work-related training and coun-
seling;
‘‘(C) establish a corps of trained, accessible,
and responsive work incentives specialists within
the Social Security Administration who will spe-
cialize in disability work incentives under titles
II and XVI for the purpose of disseminating ac-
curate information with respect to inquiries and
issues relating to work incentives to—
‘‘(i) disabled beneficiaries;
‘‘(ii) benefit applicants under titles II
and XVI; and
‘‘(iii) individuals or entities awarded
grants under subparagraphs (A) or (B);
and
‘‘(D) provide—
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‘‘(i) training for work incentives spe-
cialists and individuals providing planning
assistance described in subparagraph (C);
and
‘‘(ii) technical assistance to organiza-
tions and entities that are designed to en-
courage disabled beneficiaries to return to
work.
‘‘(3) COORDINATION WITH OTHER PROGRAMS.—
The responsibilities of the Commissioner established
under this section shall be coordinated with other
public and private programs that provide informa-
tion and assistance regarding rehabilitation services
and independent living supports and benefits plan-
ning for disabled beneficiaries including the program
under section 1619, the plans for achieving self-sup-
port program (PASS), and any other Federal or
State work incentives programs that are designed to
assist disabled beneficiaries, including educational
agencies that provide information and assistance re-
garding rehabilitation, school-to-work programs, tran-
sition services (as defined in, and provided in accord-
ance with, the Individuals with Disabilities Edu-
cation Act (20 U.S.C. 1400 et seq.)), a one-stop deliv-
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ery system established under subtitle B of title I of the
Workforce Investment Act of 1998, and other services.
‘‘(b) CONDITIONS.—
‘‘(1) SELECTION OF ENTITIES.—
‘‘(A) APPLICATION.—An entity shall submit
an application for a grant, cooperative agree-
ment, or contract to provide benefits planning
and assistance to the Commissioner at such time,
in such manner, and containing such informa-
tion as the Commissioner may determine is nec-
essary to meet the requirements of this section.
‘‘(B) STATEWIDENESS.—The Commissioner
shall ensure that the planning, assistance, and
information described in paragraph (2) shall be
available on a statewide basis.
‘‘(C) ELIGIBILITY OF STATES AND PRIVATE
ORGANIZATIONS.—
‘‘(i) IN GENERAL.—The Commissioner
may award a grant, cooperative agreement,
or contract under this section to a State or
a private agency or organization (other
than Social Security Administration Field
Offices and the State agency administering
the State medicaid program under title
XIX, including any agency or entity de-
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scribed in clause (ii), that the Commissioner
determines is qualified to provide the plan-
ning, assistance, and information described
in paragraph (2)).
‘‘(ii) AGENCIES
AND
ENTITIES
DE-
SCRIBED.—The agencies and entities de-
scribed in this clause are the following:
‘‘(I) Any public or private agency
or organization (including Centers for
Independent Living established under
title VII of the Rehabilitation Act of
1973, protection and advocacy organi-
zations, client assistance programs es-
tablished in accordance with section
112 of the Rehabilitation Act of 1973,
and State Developmental Disabilities
Councils established in accordance
with section 124 of the Developmental
Disabilities Assistance and Bill of
Rights Act (42 U.S.C. 6024)) that the
Commissioner determines satisfies the
requirements of this section.
‘‘(II) The State agency admin-
istering the State program funded
under part A of title IV.
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‘‘(D) EXCLUSION FOR CONFLICT OF INTER-
EST.—The Commissioner may not award a
grant, cooperative agreement, or contract under
this section to any entity that the Commissioner
determines would have a conflict of interest if the
entity were to receive a grant, cooperative agree-
ment, or contract under this section.
‘‘(2) SERVICES
PROVIDED.—A recipient of a
grant, cooperative agreement, or contract to provide
benefits planning and assistance shall select individ-
uals who will act as planners and provide informa-
tion, guidance, and planning to disabled beneficiaries
on the—
‘‘(A) availability and interrelation of any
Federal or State work incentives programs de-
signed to assist disabled beneficiaries that the in-
dividual may be eligible to participate in;
‘‘(B) adequacy of any health benefits cov-
erage that may be offered by an employer of the
individual and the extent to which other health
benefits coverage may be available to the indi-
vidual; and
‘‘(C) availability of protection and advocacy
services for disabled beneficiaries and how to ac-
cess such services.
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‘‘(3) AMOUNT OF GRANTS, COOPERATIVE AGREE-
MENTS, OR CONTRACTS.—
‘‘(A) BASED ON POPULATION OF DISABLED
BENEFICIARIES.—Subject to subparagraph (B),
the Commissioner shall award a grant, coopera-
tive agreement, or contract under this section to
an entity based on the percentage of the popu-
lation of the State where the entity is located
who are disabled beneficiaries.
‘‘(B) LIMITATION PER GRANT.—No entity
shall receive a grant, cooperative agreement, or
contract under this section for a fiscal year that
is less than $50,000 or more than $300,000.
‘‘(ii) TOTAL AMOUNT FOR ALL GRANTS,
COOPERATIVE
AGREEMENTS, 
AND
CON-
TRACTS.—The total amount of all grants,
cooperative 
agreements, 
and 
contracts
awarded under this section for a fiscal year
may not exceed $23,000,000.
‘‘(4) ALLOCATION OF COSTS.—The costs of car-
rying out this section shall be paid from amounts
made available for the administration of title II and
amounts made available for the administration of
title XVI, and shall be allocated among those amounts
as appropriate.
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‘‘(c) DEFINITIONS.—In this section:
‘‘(1) COMMISSIONER.—The term ‘Commissioner’
means the Commissioner of Social Security.
‘‘(2) DISABLED
BENEFICIARY.—The term ‘dis-
abled beneficiary’ has the meaning given that term in
section 1148(k)(2).
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$23,000,000 for each of fiscal years 2000 through 2004.’’.
SEC. 222. STATE GRANTS FOR WORK INCENTIVES ASSIST-
ANCE TO DISABLED BENEFICIARIES.
Part A of title XI of the Social Security Act (42 U.S.C.
1301 et seq.), as amended by section 221, is amended by
adding after section 1149 the following:
‘‘STATE GRANTS FOR WORK INCENTIVES ASSISTANCE TO
DISABLED BENEFICIARIES
‘‘SEC. 1150. (a) IN GENERAL.—Subject to subsection
(c), the Commissioner may make payments in each State
to the protection and advocacy system established pursuant
to part C of title I of the Developmental Disabilities Assist-
ance and Bill of Rights Act (42 U.S.C. 6041 et seq.) for
the purpose of providing services to disabled beneficiaries.
‘‘(b) SERVICES PROVIDED.—Services provided to dis-
abled beneficiaries pursuant to a payment made under this
section may include—
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‘‘(1) information and advice about obtaining vo-
cational rehabilitation and employment services; and
‘‘(2) advocacy or other services that a disabled
beneficiary may need to secure or regain gainful em-
ployment.
‘‘(c) APPLICATION.—In order to receive payments
under this section, a protection and advocacy system shall
submit an application to the Commissioner, at such time,
in such form and manner, and accompanied by such infor-
mation and assurances as the Commissioner may require.
‘‘(d) AMOUNT OF PAYMENTS.—
‘‘(1) IN GENERAL.—Subject to the amount ap-
propriated for a fiscal year for making payments
under this section, a protection and advocacy system
shall not be paid an amount that is less than—
‘‘(A) in the case of a protection and advo-
cacy system located in a State (including the
District of Columbia and Puerto Rico) other
than Guam, American Samoa, the United States
Virgin Islands, and the Commonwealth of the
Northern Mariana Islands, the greater of—
‘‘(i) $100,000; or
‘‘(ii) 1⁄3 of 1 percent of the amount
available for payments under this section;
and
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‘‘(B) in the case of a protection and advo-
cacy system located in Guam, American Samoa,
the United States Virgin Islands, and the Com-
monwealth of the Northern Mariana Islands,
$50,000.
‘‘(2) INFLATION ADJUSTMENT.—For each fiscal
year in which the total amount appropriated to carry
out this section exceeds the total amount appropriated
to carry out this section in the preceding fiscal year,
the Commissioner shall increase each minimum pay-
ment under subparagraphs (A) and (B) of paragraph
(1) by a percentage equal to the percentage increase
in the total amount appropriated to carry out this
section between the preceding fiscal year and the fis-
cal year involved.
‘‘(e) ANNUAL REPORT.—Each protection and advocacy
system that receives a payment under this section shall sub-
mit an annual report to the Commissioner and the Work
Incentives Advisory Panel established under section 201(f)
of the Work Incentives Improvement Act of 1999 on the serv-
ices provided to individuals by the system.
‘‘(f) FUNDING.—
‘‘(1) ALLOCATION
OF
PAYMENTS.—Payments
under this section shall be made from amounts made
available for the administration of title II and
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amounts made available for the administration of
title XVI, and shall be allocated among those amounts
as appropriate.
‘‘(2) CARRYOVER.—Any amounts allotted for
payment to a protection and advocacy system under
this section for a fiscal year shall remain available
for payment to or on behalf of the protection and ad-
vocacy system until the end of the succeeding fiscal
year.
‘‘(g) DEFINITIONS.—In this section:
‘‘(1) COMMISSIONER.—The term ‘Commissioner’
means the Commissioner of Social Security.
‘‘(2) DISABLED
BENEFICIARY.—The term ‘dis-
abled beneficiary’ has the meaning given that term in
section 1148(k)(2).
‘‘(3) PROTECTION AND ADVOCACY SYSTEM.—The
term ‘protection and advocacy system’ means a pro-
tection and advocacy system established pursuant to
part C of title I of the Developmental Disabilities As-
sistance and Bill of Rights Act (42 U.S.C. 6041 et
seq.).
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to carry out this section
$7,000,000 for each of fiscal years 2000 through 2004.’’.
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TITLE III—DEMONSTRATION
PROJECTS AND STUDIES
SEC. 301. PERMANENT EXTENSION OF DISABILITY INSUR-
ANCE PROGRAM DEMONSTRATION PROJECT
AUTHORITY.
(a) PERMANENT EXTENSION OF AUTHORITY.—Title II
of the Social Security Act (42 U.S.C. 401 et seq.) is amend-
ed by adding at the end the following:
‘‘DEMONSTRATION PROJECT AUTHORITY
‘‘SEC. 234. (a) AUTHORITY.—
‘‘(1) IN GENERAL.—The Commissioner of Social
Security (in this section referred to as the ‘Commis-
sioner’) shall develop and carry out experiments and
demonstration projects designed to determine the rel-
ative advantages and disadvantages of—
‘‘(A) various alternative methods of treating
the work activity of individuals entitled to dis-
ability 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)), including such methods as a
reduction in benefits based on earnings, designed
to encourage the return to work of such individ-
uals;
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‘‘(B) altering other limitations and condi-
tions applicable to such individuals (including
lengthening the trial work period (as defined in
section 222(c)), altering the 24-month waiting
period for hospital insurance benefits under sec-
tion 226, altering the manner in which the pro-
gram under this title is administered, earlier re-
ferral of such individuals for rehabilitation, and
greater use of employers and others to develop,
perform, and otherwise stimulate new forms of
rehabilitation); and
‘‘(C) implementing sliding scale benefit off-
sets using variations in—
‘‘(i) the amount of the offset as a pro-
portion of earned income;
‘‘(ii) the duration of the offset period;
and
‘‘(iii) the method of determining the
amount of income earned by such individ-
uals,
to the end that savings will accrue to the Trust
Funds, or to otherwise promote the objectives or facili-
tate the administration of this title.
‘‘(2) AUTHORITY FOR EXPANSION OF SCOPE.—
The Commissioner may expand the scope of any such
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experiment or demonstration project to include any
group of applicants for benefits under the program es-
tablished under this title with impairments that rea-
sonably may be presumed to be disabling for purposes
of such demonstration project, and may limit any
such demonstration project to any such group of ap-
plicants, subject to the terms of such demonstration
project which shall define the extent of any such pre-
sumption.
‘‘(b) REQUIREMENTS.—The experiments and dem-
onstration projects developed under subsection (a) shall be
of sufficient scope and shall be carried out on a wide enough
scale to permit a thorough evaluation of the alternative
methods under consideration while giving assurance that
the results derived from the experiments and projects will
obtain generally in the operation of the disability insurance
program under this title without committing such program
to the adoption of any particular system either locally or
nationally.
‘‘(c) AUTHORITY TO WAIVE COMPLIANCE WITH BENE-
FITS REQUIREMENTS.—In the case of any experiment or
demonstration project conducted under subsection (a), the
Commissioner may waive compliance with the benefit re-
quirements of this title, and the Secretary may (upon the
request of the Commissioner) waive compliance with the
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benefits requirements of title XVIII, insofar as is necessary
for a thorough evaluation of the alternative methods under
consideration. No such experiment or project shall be actu-
ally placed in operation unless at least 90 days prior there-
to a written report, prepared for purposes of notification
and information only and containing a full and complete
description thereof, has been transmitted by the Commis-
sioner to the Committee on Ways and Means of the House
of Representatives and to the Committee on Finance of the
Senate. Periodic reports on the progress of such experiments
and demonstration projects shall be submitted by the Com-
missioner to such committees. When appropriate, such re-
ports shall include detailed recommendations for changes in
administration or law, or both, to carry out the objectives
stated in subsection (a).
‘‘(d) REPORTS.—
‘‘(1) INTERIM REPORTS.—On or before June 9 of
each year, the Commissioner shall submit to the Com-
mittee on Ways and Means of the House of Represent-
atives and to the Committee on Finance of the Senate
an interim report on the progress of the experiments
and demonstration projects carried out under this
subsection together with any related data and mate-
rials that the Commissioner may consider appro-
priate.
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‘‘(2) FINAL REPORTS.—Not later than 90 days
after the termination of any experiment or dem-
onstration project carried out under this section, the
Commissioner shall submit to the Committee on Ways
and Means of the House of Representatives and to the
Committee on Finance of the Senate a final report
with respect to that experiment and demonstration
project.’’.
(b) CONFORMING AMENDMENTS; TRANSFER OF PRIOR
AUTHORITY.—
(1) CONFORMING AMENDMENTS.—
(A) REPEAL OF PRIOR AUTHORITY.—Para-
graphs (1) through (4) of subsection (a) and sub-
section (c) of section 505 of the Social Security
Disability Amendments of 1980 (42 U.S.C. 1310
note) are repealed.
(B) CONFORMING AMENDMENT REGARDING
FUNDING.—Section 201(k) of the Social Security
Act (42 U.S.C. 401(k)) is amended by striking
‘‘section 505(a) of the Social Security Disability
Amendments of 1980’’ and inserting ‘‘section
234’’.
(2) TRANSFER OF PRIOR AUTHORITY.—With re-
spect to any experiment or demonstration project
being conducted under section 505(a) of the Social Se-
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curity Disability Amendments of 1980 (42 U.S.C.
1310 note) as of the date of enactment of this Act, the
authority to conduct such experiment or demonstra-
tion project (including the terms and conditions ap-
plicable to the experiment or demonstration project)
shall be treated as if that authority (and such terms
and conditions) had been established under section
234 of the Social Security Act, as added by subsection
(a).
SEC. 302. DEMONSTRATION PROJECTS PROVIDING FOR RE-
DUCTIONS IN DISABILITY INSURANCE BENE-
FITS BASED ON EARNINGS.
(a) AUTHORITY.—The Commissioner of Social Secu-
rity shall conduct demonstration projects for the purpose
of evaluating, through the collection of data, a program for
title II disability beneficiaries (as defined in section
1148(k)(3) of the Social Security Act) under which each
$1 of benefits payable under section 223, or under section
202 based on the beneficiary’s disability, is reduced for each
$2 of such beneficiary’s earnings that is above a level to
be determined by the Commissioner. Such projects shall be
conducted at a number of localities which the Commissioner
shall determine is sufficient to adequately evaluate the ap-
propriateness of national implementation of such a pro-
gram. Such projects shall identify reductions in Federal ex-
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penditures that may result from the permanent implemen-
tation of such a program.
(b) SCOPE AND SCALE AND MATTERS TO BE DETER-
MINED.—
(1) IN
GENERAL.—The demonstration projects
developed under subsection (a) shall be of sufficient
duration, shall be of sufficient scope, and shall be car-
ried out on a wide enough scale to permit a thorough
evaluation of the project to determine—
(A) the effects, if any, of induced entry into
the project and reduced exit from the project;
(B) the extent, if any, to which the project
being tested is affected by whether it is in oper-
ation in a locality within an area under the ad-
ministration of the Ticket to Work and Self-Suf-
ficiency Program established under section 1148
of the Social Security Act; and
(C) the savings that accrue to the Federal
Old-Age and Survivors Insurance Trust Fund,
the Federal Disability Insurance Trust Fund,
and other Federal programs under the project
being tested.
The Commissioner shall take into account advice pro-
vided by the Work Incentives Advisory Panel pursu-
ant to section 201(f)(2)(B)(ii).
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(2) ADDITIONAL MATTERS.—The Commissioner
shall also determine with respect to each project—
(A) the annual cost (including net cost) of
the project and the annual cost (including net
cost) that would have been incurred in the ab-
sence of the project;
(B) the determinants of return to work, in-
cluding the characteristics of the beneficiaries
who participate in the project; and
(C) the employment outcomes, including
wages, occupations, benefits, and hours worked,
of beneficiaries who return to work as a result of
participation in the project.
The Commissioner may include within the matters
evaluated under the project the merits of trial work
periods and periods of extended eligibility.
(c) WAIVERS.—The Commissioner may waive compli-
ance with the benefit provisions of title II of the Social Se-
curity Act, and the Secretary of Health and Human Serv-
ices may waive compliance with the benefit requirements
of title XVIII of that Act, insofar as is necessary for a thor-
ough evaluation of the alternative methods under consider-
ation. No such project shall be actually placed in operation
unless at least 90 days prior thereto a written report, pre-
pared for purposes of notification and information only
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and containing a full and complete description thereof, has
been transmitted by the Commissioner to the Committee on
Ways and Means of the House of Representatives and to
the Committee on Finance of the Senate. Periodic reports
on the progress of such projects shall be submitted by the
Commissioner to such committees. When appropriate, such
reports shall include detailed recommendations for changes
in administration or law, or both, to carry out the objectives
stated in subsection (a).
(d) INTERIM REPORTS.—Not later than 2 years after
the date of enactment of this Act, and annually thereafter,
the Commissioner of Social Security shall submit to Con-
gress an interim report on the progress of the demonstration
projects carried out under this subsection together with any
related data and materials that the Commissioner of Social
Security may consider appropriate.
(e) FINAL REPORT.—The Commissioner of Social Se-
curity shall submit to Congress a final report with respect
to all demonstration projects carried out under this section
not later than 1 year after their completion.
(f) EXPENDITURES.—Expenditures made for dem-
onstration projects under this section shall be made from
the Federal Disability Insurance Trust Fund and the Fed-
eral Old-Age and Survivors Insurance Trust Fund, as de-
termined appropriate by the Commissioner of Social Secu-
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rity, and from the Federal Hospital Insurance Trust Fund
and the Federal Supplementary Medical Insurance Trust
Fund, as determined appropriate by the Secretary of
Health and Human Services, to the extent provided in ad-
vance in appropriation Acts.
SEC. 303. STUDIES AND REPORTS.
(a) STUDY BY GENERAL ACCOUNTING OFFICE OF EX-
ISTING DISABILITY-RELATED EMPLOYMENT INCENTIVES.—
(1) STUDY.—As soon as practicable after the
date of enactment of this Act, the Comptroller General
of the United States shall undertake a study to assess
existing tax credits and other disability-related em-
ployment incentives under the Americans with Dis-
abilities Act of 1990 and other Federal laws. In such
study, the Comptroller General shall specifically ad-
dress the extent to which such credits and other incen-
tives would encourage employers to hire and retain
individuals with disabilities.
(2) REPORT.—Not later than 3 years after the
date of enactment of this Act, the Comptroller General
shall transmit to the Committee on Ways and Means
of the House of Representatives and the Committee on
Finance of the Senate a written report presenting the
results of the Comptroller General’s study conducted
pursuant to this subsection, together with such rec-
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ommendations 
for 
legislative 
or 
administrative
changes as the Comptroller General determines are
appropriate.
(b) STUDY BY GENERAL ACCOUNTING OFFICE OF EX-
ISTING COORDINATION OF THE DI AND SSI PROGRAMS AS
THEY RELATE TO INDIVIDUALS ENTERING OR LEAVING
CONCURRENT ENTITLEMENT.—
(1) STUDY.—As soon as practicable after the
date of enactment of this Act, the Comptroller General
of the United States shall undertake a study to evalu-
ate the coordination under current law of the dis-
ability insurance program under title II of the Social
Security Act and the supplemental security income
program under title XVI of that Act, as such pro-
grams relate to individuals entering or leaving con-
current entitlement under such programs. In such
study, the Comptroller General shall specifically ad-
dress the effectiveness of work incentives under such
programs with respect to such individuals and the ef-
fectiveness of coverage of such individuals under titles
XVIII and XIX of the Social Security Act.
(2) REPORT.—Not later than 3 years after the
date of enactment of this Act, the Comptroller General
shall transmit to the Committee on Ways and Means
of the House of Representatives and the Committee on
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Finance of the Senate a written report presenting the
results of the Comptroller General’s study conducted
pursuant to this subsection, together with such rec-
ommendations 
for 
legislative 
or 
administrative
changes as the Comptroller General determines are
appropriate.
(c) STUDY BY GENERAL ACCOUNTING OFFICE OF THE
IMPACT OF THE SUBSTANTIAL GAINFUL ACTIVITY LIMIT ON
RETURN TO WORK.—
(1) STUDY.—As soon as practicable after the
date of enactment of this Act, the Comptroller General
of the United States shall undertake a study of the
substantial gainful activity level applicable as of that
date to recipients of benefits under section 223 of the
Social Security Act (42 U.S.C. 423) and under sec-
tion 202 of that Act (42 U.S.C. 402) on the basis of
a recipient having a disability, and the effect of such
level as a disincentive for those recipients to return
to work. In the study, the Comptroller General also
shall address the merits of increasing the substantial
gainful activity level applicable to such recipients of
benefits and the rationale for not yearly indexing that
level to inflation.
(2) REPORT.—Not later than 2 years after the
date of enactment of this Act, the Comptroller General
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shall transmit to the Committee on Ways and Means
of the House of Representatives and the Committee on
Finance of the Senate a written report presenting the
results of the Comptroller General’s study conducted
pursuant to this subsection, together with such rec-
ommendations 
for 
legislative 
or 
administrative
changes as the Comptroller General determines are
appropriate.
(d) REPORT ON DISREGARDS UNDER THE DI AND SSI
PROGRAMS.—Not later than 90 days after the date of enact-
ment of this Act, the Commissioner of Social Security shall
submit to the Committee on Ways and Means of the House
of Representatives and the Committee on Finance of the
Senate a report that—
(1) identifies all income, assets, and resource dis-
regards (imposed under statutory or regulatory au-
thority) that are applicable to individuals receiving
benefits under title II or XVI of the Social Security
Act (42 U.S.C. 401 et seq., 1381 et seq.);
(2) with respect to each such disregard—
(A) specifies the most recent statutory or
regulatory modification of the disregard; and
(B) recommends whether further statutory
or regulatory modification of the disregard
would be appropriate; and
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(3) with respect to the disregard described in sec-
tion 1612(b)(7) of the Social Security Act (42 U.S.C.
1382a(b)(7)) (relating to grants, scholarships, or fel-
lowships received for use in paying the cost of tuition
and fees at any educational (including technical or
vocational education) institution)—
(A) identifies the number of individuals re-
ceiving benefits under title XVI of such Act (42
U.S.C. 1381 et seq.) who have attained age 22
and have not had any portion of any grant,
scholarship, or fellowship received for use in pay-
ing the cost of tuition and fees at any edu-
cational (including technical or vocational edu-
cation) institution excluded from their income in
accordance with that section;
(B) recommends whether the age at which
such grants, scholarships, or fellowships are ex-
cluded from income for purposes of determining
eligibility under title XVI of the Social Security
Act should be increased to age 25; and
(C) recommends whether such disregard
should be expanded to include any such grant,
scholarship, or fellowship received for use in pay-
ing the cost of room and board at any such insti-
tution.
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TITLE IV—MISCELLANEOUS AND
TECHNICAL AMENDMENTS
SEC. 401. TECHNICAL AMENDMENTS RELATING TO DRUG
ADDICTS AND ALCOHOLICS.
(a) CLARIFICATION RELATING
TO
THE EFFECTIVE
DATE OF THE DENIAL OF SOCIAL SECURITY DISABILITY
BENEFITS TO DRUG ADDICTS AND ALCOHOLICS.—Section
105(a)(5) of the Contract with America Advancement Act
of 1996 (Public Law 104–121; 110 Stat. 853) is amended—
(1) in subparagraph (A), by striking ‘‘by the
Commissioner of Social Security’’ and ‘‘by the Com-
missioner’’; and
(2) by adding at the end the following:
‘‘(D) For purposes of this paragraph, an in-
dividual’s claim, with respect to benefits under
title II of the Social Security Act based on dis-
ability, which has been denied in whole before
the date of enactment of this Act, may not be
considered to be finally adjudicated before such
date if, on or after such date—
‘‘(i) there is pending a request for ei-
ther administrative or judicial review with
respect to such claim, or
‘‘(ii) there is pending, with respect to
such claim, a readjudication by the Com-
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missioner of Social Security pursuant to re-
lief in a class action or implementation by
the Commissioner of a court remand order.
‘‘(E) Notwithstanding the provisions of this
paragraph, with respect to any individual for
whom the Commissioner of Social Security does
not perform the entitlement redetermination be-
fore the date prescribed in subparagraph (C), the
Commissioner shall perform such entitlement re-
determination in lieu of a continuing disability
review whenever the Commissioner determines
that the individual’s entitlement is subject to re-
determination based on the preceding provisions
of this paragraph, and the provisions of section
223(f) of the Social Security Act shall not apply
to such redetermination.’’.
(b) CORRECTION TO EFFECTIVE DATE OF PROVISIONS
CONCERNING REPRESENTATIVE PAYEES AND TREATMENT
REFERRALS OF SOCIAL SECURITY BENEFICIARIES WHO
ARE
DRUG
ADDICTS
AND
ALCOHOLICS.—Section
105(a)(5)(B) of the Contract with America Advancement
Act of 1996 (42 U.S.C. 405 note) is amended to read as
follows:
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‘‘(B) The amendments made by paragraphs
(2) and (3) shall take effect on July 1, 1996,
with respect to any individual—
‘‘(i) whose claim for benefits is finally
adjudicated on or after the date of enact-
ment of this Act; or
‘‘(ii) whose entitlement to benefits is
based on an entitlement redetermination
made pursuant to subparagraph (C).’’.
(c) EFFECTIVE DATES.—The amendments made by
this section shall take effect as if included in the enactment
of section 105 of the Contract with America Advancement
Act of 1996 (Public Law 104–121; 110 Stat. 852 et seq.).
SEC. 402. TREATMENT OF PRISONERS.
(a) IMPLEMENTATION OF PROHIBITION AGAINST PAY-
MENT OF TITLE II BENEFITS TO PRISONERS.—
(1) IN GENERAL.—Section 202(x)(3) of the So-
cial Security Act (42 U.S.C. 402(x)(3)) is amended—
(A) by inserting ‘‘(A)’’ after ‘‘(3)’’; and
(B) by adding at the end the following:
‘‘(B)(i) The Commissioner shall enter into an agree-
ment under this subparagraph with any interested State
or local institution comprising a jail, prison, penal institu-
tion, or correctional facility, or comprising any other insti-
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tution a purpose of which is to confine individuals as de-
scribed in paragraph (1)(A)(ii). Under such agreement—
‘‘(I) the institution shall provide to the Commis-
sioner, on a monthly basis and in a manner specified
by the Commissioner, the names, Social Security ac-
count numbers, dates of birth, confinement commence-
ment dates, and, to the extent available to the institu-
tion, such other identifying information concerning
the individuals confined in the institution as the
Commissioner may require for the purpose of car-
rying out paragraph (1); and
‘‘(II) the Commissioner shall pay to the institu-
tion, with respect to information described in sub-
clause (I) concerning each individual who is confined
therein as described in paragraph (1)(A), who receives
a benefit under this title for the month preceding the
first month of such confinement, and whose benefit
under this title is determined by the Commissioner to
be not payable by reason of confinement based on the
information provided by the institution, $400 (subject
to reduction under clause (ii)) if the institution fur-
nishes the information to the Commissioner within 30
days after the date such individual’s confinement in
such institution begins, or $200 (subject to reduction
under clause (ii)) if the institution furnishes the in-
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formation after 30 days after such date but within 90
days after such date.
‘‘(ii) The dollar amounts specified in clause (i)(II)
shall be reduced by 50 percent if the Commissioner is also
required to make a payment to the institution with respect
to the same individual under an agreement entered into
under section 1611(e)(1)(I).
‘‘(iii) There is authorized to be transferred from the
Federal Old-Age and Survivors Insurance Trust Fund and
the Federal Disability Insurance Trust Fund, as appro-
priate, such sums as may be necessary to enable the Com-
missioner to make payments to institutions required by
clause (i)(II).
‘‘(iv) The Commissioner is authorized to provide, on
a reimbursable basis, information obtained pursuant to
agreements entered into under clause (i) to any agency ad-
ministering a Federal or federally assisted cash, food, or
medical assistance program for eligibility purposes.’’.
(2) CONFORMING AMENDMENT TO THE PRIVACY
ACT.—Section 552a(a)(8)(B) of title 5, United States
Code, is amended—
(A) in clause (vi), by striking ‘‘or’’ at the
end;
(B) in clause (vii), by adding ‘‘or’’ at the
end; and
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(C) by adding at the end the following:
‘‘(viii) matches performed pursuant to
section 202(x)(3)(B) or 1611(e)(1)(I) of the
Social 
Security 
Act 
(42 
U.S.C.
402(x)(3)(B), 1382(e)(1)(I));’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to individuals whose
period of confinement in an institution commences on
or after the first day of the fourth month beginning
after the month in which this Act is enacted.
(b) ELIMINATION OF TITLE II REQUIREMENT THAT
CONFINEMENT STEM FROM CRIME PUNISHABLE BY IM-
PRISONMENT FOR MORE THAN 1 YEAR.—
(1) IN GENERAL.—Section 202(x)(1)(A) of the
Social Security Act (42 U.S.C. 402(x)(1)(A)) is
amended—
(A) in the matter preceding clause (i), by
striking ‘‘during’’ and inserting ‘‘throughout’’;
(B) in clause (i), by striking ‘‘an offense
punishable by imprisonment for more than 1
year (regardless of the actual sentence imposed)’’
and inserting ‘‘a criminal offense’’; and
(C) in clause (ii)(I), by striking ‘‘an offense
punishable by imprisonment for more than 1
year’’ and inserting ‘‘a criminal offense’’.
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(2) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to individuals whose
period of confinement in an institution commences on
or after the first day of the fourth month beginning
after the month in which this Act is enacted.
(c) CONFORMING TITLE XVI AMENDMENTS.—
(1) FIFTY PERCENT REDUCTION IN TITLE XVI
PAYMENT IN CASE INVOLVING COMPARABLE TITLE II
PAYMENT.—Section 1611(e)(1)(I) of the Social Secu-
rity Act (42 U.S.C. 1382(e)(1)(I)) is amended—
(A) in clause (i)(II), by inserting ‘‘(subject
to reduction under clause (ii))’’ after ‘‘$400’’ and
after ‘‘$200’’;
(B) by redesignating clauses (ii) and (iii)
as clauses (iii) and (iv), respectively; and
(C) by inserting after clause (i) the fol-
lowing:
‘‘(ii) The dollar amounts specified in clause (i)(II)
shall be reduced by 50 percent if the Commissioner is also
required to make a payment to the institution with respect
to the same individual under an agreement entered into
under section 202(x)(3)(B).’’.
(2) EXPANSION
OF
CATEGORIES
OF
INSTITU-
TIONS ELIGIBLE TO ENTER INTO AGREEMENTS WITH
THE COMMISSIONER.—Section 1611(e)(1)(I)(i) of the
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Social Security Act (42 U.S.C. 1382(e)(1)(I)(i)) is
amended in the matter preceding subclause (I) by
striking ‘‘institution’’ and all that follows through
‘‘section 202(x)(1)(A),’’ and inserting ‘‘institution
comprising a jail, prison, penal institution, or correc-
tional facility, or with any other interested State or
local institution a purpose of which is to confine in-
dividuals as described in section 202(x)(1)(A)(ii),’’.
(3) ELIMINATION
OF
OVERLY
BROAD
EXEMP-
TION.—Section 1611(e)(1)(I)(iii) of such Act (42
U.S.C. 1382(e)(1)(I)(iii)) (as redesignated by para-
graph (1)(B), is amended by striking ‘‘(I) The provi-
sions’’ and all that follows through ‘‘(II)’’.
(4) EFFECTIVE DATE.—The amendments made
by this subsection shall take effect as if included in
the enactment of section 203(a) of the Personal Re-
sponsibility and Work Opportunity Reconciliation
Act of 1996 (Public Law 104–193; 110 Stat. 2186).
The reference to section 202(x)(1)(A)(ii) of the Social
Security Act in section 1611(e)(1)(I)(i) of the Social
Security Act as amended by paragraph (2) shall be
deemed a reference to such section 202(x)(1)(A)(ii) as
amended by subsection (b)(1)(C).
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(d) CONTINUED DENIAL OF BENEFITS TO SEX OF-
FENDERS REMAINING CONFINED TO PUBLIC INSTITUTIONS
UPON COMPLETION OF PRISON TERM.—
(1) IN GENERAL.—Section 202(x)(1)(A) of the
Social Security Act (42 U.S.C. 402(x)(1)(A)) is
amended—
(A) in clause (i), by striking ‘‘or’’ at the
end;
(B) in clause (ii)(IV), by striking the period
and inserting ‘‘, or’’; and
(C) by adding at the end the following:
‘‘(iii) immediately upon completion of confine-
ment as described in clause (i) pursuant to conviction
of a criminal offense an element of which is sexual ac-
tivity, is confined by court order in an institution at
public expense pursuant to a finding that the indi-
vidual is a sexually dangerous person or a sexual
predator or a similar finding.’’.
(2) 
CONFORMING
AMENDMENT.—Section
202(x)(1)(B)(ii) of the Social Security Act (42 U.S.C.
402(x)(1)(B)(ii)) is amended by striking ‘‘clause (ii)’’
and inserting ‘‘clauses (ii) and (iii)’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply with respect to benefits
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for months ending after the date of enactment of this
Act.
SEC. 403. REVOCATION BY MEMBERS OF THE CLERGY OF
EXEMPTION FROM SOCIAL SECURITY COV-
ERAGE.
(a) IN GENERAL.—Notwithstanding section 1402(e)(4)
of the Internal Revenue Code of 1986, any exemption which
has been received under section 1402(e)(1) of such Code by
a duly ordained, commissioned, or licensed minister of a
church, a member of a religious order, or a Christian
Science practitioner, and which is effective for the taxable
year in which this Act is enacted, may be revoked by filing
an application therefore (in such form and manner, and
with such official, as may be prescribed by the Commis-
sioner of the Internal Revenue Service), if such application
is filed no later than the due date of the Federal income
tax return (including any extension thereof) for the appli-
cant’s second taxable year beginning after December 31,
1999. Any such revocation shall be effective (for purposes
of chapter 2 of the Internal Revenue Code of 1986 and title
II of the Social Security Act), as specified in the applica-
tion, either with respect to the applicant’s first taxable year
beginning after December 31, 1999, or with respect to the
applicant’s second taxable year beginning after such date,
and for all succeeding taxable years; and the applicant for
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any such revocation may not thereafter again file applica-
tion for an exemption under such section 1402(e)(1). If the
application is filed after the due date of the applicant’s Fed-
eral income tax return for a taxable year and is effective
with respect to that taxable year, it shall include or be ac-
companied by payment in full of an amount equal to the
total of the taxes that would have been imposed by section
1401 of the Internal Revenue Code of 1986 with respect to
all of the applicant’s income derived in that taxable year
which would have constituted net earnings from self-em-
ployment for purposes of chapter 2 of such Code (notwith-
standing paragraph (4) or (5) of section 1402(c) of such
Code) except for the exemption under section 1402(e)(1) of
such Code.
(b) EFFECTIVE DATE.—Subsection (a) shall apply
with respect to service performed (to the extent specified in
such subsection) in taxable years beginning after December
31, 1999, and with respect to monthly insurance benefits
payable under title II of the Social Security Act on the basis
of the wages and self-employment income of any individual
for months in or after the calendar year in which such indi-
vidual’s application for revocation (as described in such
subsection) is effective (and lump-sum death payments pay-
able under such title on the basis of such wages and self-
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employment income in the case of deaths occurring in or
after such calendar year).
SEC. 404. ADDITIONAL TECHNICAL AMENDMENT RELATING
TO 
COOPERATIVE 
RESEARCH 
OR 
DEM-
ONSTRATION PROJECTS UNDER TITLES II
AND XVI.
(a) IN GENERAL.—Section 1110(a)(3) of the Social Se-
curity Act (42 U.S.C. 1310(a)(3)) is amended by striking
‘‘title XVI’’ and inserting ‘‘title II or XVI’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect as if included in the enactment
of the Social Security Independence and Program Improve-
ments Act of 1994 (Public Law 103–296; 108 Stat. 1464).
SEC. 405. AUTHORIZATION FOR STATE TO PERMIT ANNUAL
WAGE REPORTS.
(a) IN GENERAL.—Section 1137(a)(3) of the Social Se-
curity Act (42 U.S.C. 1320b–7(a)(3)) is amended by insert-
ing before the semicolon the following: ‘‘, and except that
in the case of wage reports with respect to domestic service
employment, a State may permit employers (as so defined)
that make returns with respect to such employment on a
calendar year basis pursuant to section 3510 of the Internal
Revenue Code of 1986 to make such reports on an annual
basis’’.
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(b) TECHNICAL AMENDMENTS.—Section 1137(a)(3) of
the Social Security Act (42 U.S.C. 1320b–7(a)(3)) is
amended—
(1) 
by 
striking 
‘‘(as 
defined 
in 
section
453A(a)(2)(B)(iii))’’; and
(2) by inserting ‘‘(as defined in section
453A(a)(2)(B))’’ after ‘‘employers’’ .
(c) EFFECTIVE DATE.—The amendments made by this
section shall apply to wage reports required to be submitted
on and after the date of enactment of this Act.
Attest:
Secretary.
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