(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 the en-
actment of this Act.
(ii) TERMS OF INITIAL APPOINTEES.—
As designated by the President at the time
of appointment, of the members first ap-
pointed—
(I) 3 of the members appointed
under subparagraph (A) shall be ap-
pointed for a term of 2 years, and
(II) 3 of the members appointed
under subparagraph (A) shall be ap-
pointed for a term of 4 years.
(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 equal to the daily equivalent of
the rate of basic pay for level 4 of the Senior Ex-
ecutive Service, as in effect from time to time
under section 5382 of title 5, United States Code,
for each day (including travel time) during
which they are engaged in the actual perform-
ance of duties vested in the Panel.
(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.—4 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.
(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 Panel. The
Director shall be paid at a rate not to exceed the
maximum rate of pay payable for GS–15 of the
General Schedule.
(B) STAFF.—Subject to rules prescribed by
the Panel, the Director may appoint and fix the
pay of additional personnel as the Director con-
siders appropriate.
(C) EXPERTS AND CONSULTANTS.—Subject
to rules prescribed by the Panel, the Director
may procure temporary and intermittent serv-
ices 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-
ment or agency to the Panel to assist it in carry-
ing out its duties under this Act.
(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 section.
(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.
(D) ADMINISTRATIVE SUPPORT SERVICES.—
Upon the request of the Panel, the Administrator
of General Services shall provide to the Panel, on
a reimbursable basis, the administrative support
services necessary for the Panel to carry out its
duties under this subsection.
(6) REPORTS.—
(A) INTERIM
REPORTS.—The Panel shall
submit to the President and the Congress interim
reports at least annually.
(B) FINAL REPORT.—The Panel shall trans-
mit a final report to the President and the Con-
gress not later than eight years after the date of
the enactment of this Act. The final report shall
contain 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) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated from the Fed-
eral Old-Age and Survivors Insurance Trust Fund,
the Federal Disability Insurance Trust Fund, and the
general fund of the Treasury, as appropriate, such
sums as are necessary to carry out this subsection.
(f) 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 (but are not limited
to)—
(A) the form and manner in which tickets
to work and self-sufficiency may be distributed to
beneficiaries pursuant to section 1147(b)(1) of
such 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
Work and Self-Sufficiency Program (and revoke
such an election) pursuant to section 1147(c)(1)
of such Act and provision for periodic opportuni-
ties for exercising such elections (and revoca-
tions);
(D) the status of State agencies under sec-
tion 1147(c)(2) at the time that State agencies
exercise elections (and revocations) under such
section 1147(c)(1);
(E) the terms of agreements to be entered
into with program managers pursuant to section
1147(d) of such Act, including (but not limited
to)—
(i) the terms by which program man-
agers are precluded from direct participa-
tion in the delivery of services pursuant to
section 1147(d)(3) of such Act,
(ii) standards which must be met by
quality assurance measures referred to in
paragraph (6) of section 1147(d) and meth-
ods of recruitment of employment networks
utilized pursuant to paragraph (2) of sec-
tion 1147(e), and
(iii) the format under which dispute
resolution 
will 
operate 
under 
section
1147(d)(7).
(F) the terms of agreements to be entered
into with employment networks pursuant to sec-
tion 1147(d)(4) of such Act, including (but not
limited to)—
(i) the manner in which service areas
are 
specified 
pursuant 
to 
section
1147(f)(2)(A) of such Act,
(ii) the general selection criteria and
the specific selection criteria which are ap-
plicable to employment networks under sec-
tion 1147(f)(2)(B) of such Act in selecting
service providers,
(iii) specific requirements relating to
annual financial reporting by employment
networks pursuant to section 1147(f)(3) of
such Act, and
(iv) the national model to which peri-
odic outcomes reporting by employment net-
works 
must 
conform 
under 
section
1147(f)(4) of such Act;
(G) standards which must be met by indi-
vidual work plans pursuant to section 1147(g) of
such Act;
(H) standards which must be met by pay-
ment systems required under section 1147(h) of
such Act, including (but not limited to)—
(i) the form and manner in which elec-
tions by employment networks of payment
systems are to be exercised pursuant to sec-
tion 1147(h)(1)(A),
(ii) the terms which must be met by an
outcome payment system under section
1147(h)(2);
(iii) the terms which must be met by
an 
outcome-milestone 
payment 
system
under section 1147(h)(3);
(iv) any revision of the percentage
specified in paragraph (2)(C) of section
1147(h) of such Act or the period of time
specified in paragraph (4)(B) of such sec-
tion 1147(h); and
(v) annual oversight procedures for
such systems; and
(I) procedures for effective oversight of the
Program by the Commissioner of Social Secu-
rity, including periodic reviews and reporting
requirements.
(g) WORK INCENTIVE SPECIALISTS.—The Commis-
sioner shall establish a corps of trained, accessible, and re-
sponsive work incentive specialists to specialize in title II
and title XVI disability work incentives for the purpose of
disseminating accurate information to disabled bene-
ficiaries (as defined in section 1147(k)(1) of the Social Se-
curity Act as amended by this Act) with respect to inquiries
and issues relating to work incentives.
(h) DEMONSTRATION PROJECTS PROVIDING FOR RE-
DUCTIONS IN DISABILITY INSURANCE BENEFITS BASED ON
EARNINGS. —
(1) AUTHORITY.—The Commissioner shall con-
duct demonstration projects for the purpose of evalu-
ating, through the collection of data, a program for
title II disability beneficiaries (as defined in section
1147(k)(2) of the Social Security Act, as amended by
this 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 deter-
mined by the Commissioner. Such projects shall be
conducted at a number of localities which the Com-
missioner shall determine is sufficient to adequately
evaluate the appropriateness of national implementa-
tion of such a program. Such projects shall identify
reductions in Federal expenditures that may result
from the permanent implementation of such a pro-
gram.
(2) SCOPE AND SCALE AND MATTERS TO BE DE-
TERMINED.—
(A) 
IN
GENERAL.—The 
demonstration
projects developed under paragraph (1) shall be
of sufficient duration, shall be of sufficient scope,
and shall be carried out on a wide enough scale
to permit a thorough evaluation of the project to
determine—
(i) the effects, if any, of induced entry
and reduced exit,
(ii) the extent, if any, to which the
project being tested is affected by whether it
is in operation in a locality within an area
under the administration of the Ticket to
Work and Self-Sufficiency Program, and
(iii) the savings that accrue to the
Trust Funds and other Federal programs
under the project being tested.
The Commissioner shall take into account advice
provided by the Ticket to Work and Self-Suffi-
ciency Advisory Panel pursuant to subsection
(e)(2)(C).
(B) ADDITIONAL MATTERS.—The Commis-
sioner shall also determine with respect to each
project—
(i) the annual cost (including net cost)
of the project and the annual cost (includ-
ing net cost) that would have been incurred
in the absence of the project,
(ii) the determinants of return to work,
including the characteristics of the bene-
ficiaries who participate in the project, and
(iii) the employment outcomes, includ-
ing 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 mat-
ters evaluated under the project the merits of
trial work periods and periods of extended eligi-
bility.
(3) WAIVERS.—The Commissioner may waive
compliance with the benefit provisions of title II of
the Social Security Act, and the Secretary of Health
and Human Services may waive compliance with the
benefit requirements of title XVIII of such Act, in so
far as is necessary for a thorough evaluation of the
alternative methods under consideration. No such
project shall be actually placed in operation unless at
least 90 days prior thereto a written report, prepared
for purposes of notification and information only 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 Rep-
resentatives 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 ad-
ministration or law, or both, to carry out the objec-
tives stated in paragraph (1).
(4) INTERIM REPORTS.—On or before June 9 in
2000 and each of the succeeding years thereafter, the
Commissioner shall submit to the Congress an in-
terim report on the progress of the demonstration
projects carried out under this subsection together
with any related data and materials which the Com-
missioner may consider appropriate.
(5) FINAL
REPORT.—The Commissioner shall
submit to the Congress a final report with respect to
all demonstration projects carried out under this sec-
tion no later than one year after their completion.
(6) EXPENDITURES.—Expenditures made for
demonstration projects under this subsection shall be
made from the Federal Disability Insurance Trust
Fund and the Federal Old-Age and Survivors Insur-
ance Trust Fund, as determined appropriate by the
Commissioner, and from the Federal Hospital Insur-
ance Trust Fund and the Federal Supplementary
Medical Insurance Trust Fund, as determined appro-
priate by the Secretary of Health and Human Serv-
ices, to the extent provided in advance in appropria-
tion Acts.
(i) STUDY BY GENERAL ACCOUNTING OFFICE OF EX-
ISTING DISABILITY-RELATED EMPLOYMENT INCENTIVES.—
(1) STUDY.—As soon as practicable after the
date of the enactment of this Act, the Comptroller
General of the United States shall undertake a study
to assess existing tax credits and other disability-re-
lated employment incentives under the Americans
with Disabilities Act of 1990 and other Federal laws.
In such study, the Comptroller General shall specifi-
cally address the extent to which such credits and
other incentives would encourage employers to hire
and retain individuals with disabilities under the
Ticket to Work and Self-Sufficiency Program.
(2) REPORT.—Not later than 3 years after the
date of the enactment of this Act, the Comptroller
General shall transmit to the Committee on Ways and
Means of the House of Representatives and the Com-
mittee on Finance of the Senate a written report pre-
senting the results of the Comptroller General’s study
conducted pursuant to this subsection, together with
such recommendations for legislative or administra-
tive changes as the Comptroller General may deter-
mine to be appropriate.
(j) 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 the enactment of this Act, the Comptroller
General of the United States shall undertake a study
to evaluate the coordination under current law of the
disability insurance program under title II of the So-
cial Security Act and the supplemental security in-
come program under title XVI of such Act, as such
programs relate to individuals entering or leaving
concurrent 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 such Act.
(2) REPORT.—Not later than 18 months after the
date of the enactment of this Act, the Comptroller
General shall transmit to the Committee on Ways and
Means of the House of Representatives and the Com-
mittee on Finance of the Senate a written report pre-
senting the results of the Comptroller General’s study
conducted pursuant to this subsection, together with
such recommendations for legislative or administra-
tive changes as the Comptroller General may deter-
mine to be appropriate.
SEC. 3. EXTENDING MEDICARE COVERAGE FOR OASDI DIS-
ABILITY 
BENEFIT 
RECIPIENTS 
WHO 
ARE
USING TICKETS TO WORK AND SELF-SUFFI-
CIENCY.
(a) IN GENERAL.—The next to last sentence of section
226(b) of the Social Security Act (42 U.S.C. 426) is amend-
ed—
(1) by striking ‘‘throughout all of which’’ and in-
serting ‘‘throughout the first 24 months of which’’,
and
(2) by inserting after ‘‘but not in excess of 24
such months’’ the following: ‘‘(plus 24 additional such
months in the case of an individual who the Commis-
sioner determines is using a ticket to work and self-
sufficiency issued under section 1147, but only for ad-
ditional months that occur in the 7-year period begin-
ning on the date of the enactment of the Ticket to
Work and Self-Sufficiency Act of 1998)’’.
(b) REPORT.—Not later than 6 months prior to the
end of the 7-year period beginning on the date of the enact-
ment of this Act, the Secretary of Health and Human Serv-
ices and the Commissioner of Social Security shall submit
in writing to each House of the Congress their recommenda-
tions for further legislative action with respect to the
amendments made by subsection (a), taking into account
experience derived from efforts to achieve full implementa-
tion of the Ticket to Work and Self Sufficiency Program
under section 1147 of the Social Security Act.
SEC. 4. TECHNICAL AMENDMENTS RELATING TO DRUG AD-
DICTS 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 new sub-
paragraphs:
‘‘(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 the 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-
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 such Act (Public Law 104–121; 110 Stat.
853) is amended to read as follows:
‘‘(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 the en-
actment of this Act, or
‘‘(ii) whose entitlement to benefits is
based upon 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. 5. EXTENSION OF DISABILITY INSURANCE PROGRAM
DEMONSTRATION PROJECT AUTHORITY.
(a) IN GENERAL.—Section 505 of the Social Security
Disability Amendments of 1980 (Public Law 96–265; 94
Stat. 473), as amended by section 12101 of the Consolidated
Omnibus Budget Reconciliation Act of 1985 (Public Law
99–272; 100 Stat. 282), section 10103 of the Omnibus
Budget Reconciliation Act of 1989 (Public Law 101–239;
103 Stat. 2472), section 5120(f) of the Omnibus Budget
Reconciliation Act of 1990 (Public Law 101–508; 104 Stat.
1388–282), and section 315 of the Social Security Inde-
pendence and Program Improvements Act of 1994 (Public
Law 103–296; 108 Stat. 1531), is further amended—
(1) in paragraph (1) of subsection (a), by adding
at the end the following new sentence: ‘‘The Commis-
sioner may expand the scope of any such demonstra-
tion project to include any group of applicants for
benefits under such program with impairments which
may reasonably be presumed to be disabling for pur-
poses of such demonstration project, and may limit
any such demonstration project to any such group of
applicants, subject to the terms of such demonstration
project which shall define the extent of any such pre-
sumption.’’;
(2) in paragraph (3) of subsection (a), by strik-
ing ‘‘June 10, 1996’’ and inserting ‘‘June 10, 2001’’;
(3) in paragraph (4) of subsection (a), by insert-
ing ‘‘and on or before October 1, 2000,’’ after ‘‘1995,’’;
and
(4) in subsection (c), by striking ‘‘October 1,
1996’’ and inserting ‘‘October 1, 2001’’.
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect on the date of the enactment
of this Act.
SEC. 6. PERFECTING AMENDMENTS RELATED TO WITH-
HOLDING FROM SOCIAL SECURITY BENEFITS.
(a) INAPPLICABILITY OF ASSIGNMENT PROHIBITION.—
Section 207 of the Social Security Act (42 U.S.C. 407) is
amended by adding at the end the following new subsection:
‘‘(c) Nothing in this section shall be construed to pro-
hibit withholding taxes from any benefit under this title,
if such withholding is done pursuant to a request made in
accordance with section 3402(p)(1) of the Internal Revenue
Code of 1986 by the person entitled to such benefit or such
person’s representative payee.’’.
(b) PROPER ALLOCATION OF COSTS OF WITHHOLDING
BETWEEN THE TRUST FUNDS AND THE GENERAL FUND.—
Section 201(g) of such Act (42 U.S.C. 401(g)) is amended—
(1) by inserting before the period in paragraph
(1)(A)(ii) the following: ‘‘and the functions of the So-
cial Security Administration in connection with the
withholding of taxes from benefits, as described in sec-
tion 207(c), pursuant to requests by persons entitled
to such benefits or such persons’ representative
payee’’;
(2) by inserting before the period at the end of
paragraph (1)(A) the following: ‘‘and the functions of
the Social Security Administration in connection
with the withholding of taxes from benefits, as de-
scribed in section 207(c), pursuant to requests by per-
sons entitled to such benefits or such persons’ rep-
resentative payee’’;
(3) in paragraph (1)(B)(i)(I), by striking ‘‘sub-
paragraph (A)),’’ and inserting ‘‘subparagraph (A))
and the functions of the Social Security Administra-
tion in connection with the withholding of taxes from
benefits, as described in section 207(c), pursuant to
requests by persons entitled to such benefits or such
persons’ representative payee,’’;
(4) in paragraph (1)(C)(iii), by inserting before
the period the following: ‘‘and the functions of the So-
cial Security Administration in connection with the
withholding of taxes from benefits, as described in sec-
tion 207(c), pursuant to requests by persons entitled
to such benefits or such persons’ representative
payee’’;
(5) in paragraph (1)(D), by inserting after ‘‘sec-
tion 232’’ the following: ‘‘and the functions of the So-
cial Security Administration in connection with the
withholding of taxes from benefits as described in sec-
tion 207(c)’’; and
(6) in paragraph (4), by inserting after the first
sentence the following: ‘‘The Board of Trustees of such
Trust Funds shall prescribe the method of determin-
ing the costs which should be borne by the general
fund in the Treasury of carrying out the functions of
the Social Security Administration in connection
with the withholding of taxes from benefits, as de-
scribed in section 207(c), pursuant to requests by per-
sons entitled to such benefits or such persons’ rep-
resentative payee.’’.
(c) EFFECTIVE DATE.—The amendments made by sub-
section (b) shall apply to benefits paid on or after the first
day of the second month beginning after the month in which
this Act is enacted.
SEC. 7. 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 new
subparagraph:
‘‘(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-
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 carry-
ing 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-
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) The provisions of section 552a of title 5, United
States Code, shall not apply to any agreement entered into
under clause (i) or to information exchanged pursuant to
such agreement.
‘‘(iv) 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). Sums so transferred shall be treated as direct
spending for purposes of the Balanced Budget and Emer-
gency Deficit Control Act of 1985 and excluded from budget
totals in accordance with section 13301 of the Budget En-
forcement Act of 1990.
‘‘(v) 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) 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 such
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’’.
(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 follow-
ing new clause:
‘‘(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 such
Act (42 U.S.C. 1382(e)(1)(I)(i)) is amended in the
matter preceding subclause (I) by striking ‘‘institu-
tion’’ 
and 
all 
that 
follows 
through 
‘‘section
202(x)(1)(A),’’ and inserting ‘‘institution comprising
a jail, prison, penal institution, or correctional facil-
ity, or with any other interested State or local insti-
tution a purpose of which is to confine individuals as
described in section 202(x)(1)(A)(ii),’’.
(3) 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 such Act as
amended by paragraph (2) shall be deemed a ref-
erence to such section 202(x)(1)(A)(ii) as amended by
subsection (b)(1)(C).
(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 new
clause:
‘‘(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 individ-
ual is a sexually dangerous person or a sexual preda-
tor or a similar finding.’’.
(2) 
CONFORMING
AMENDMENT.—Section
202(x)(1)(B)(ii) 
of 
such 
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
for months ending after the date of the enactment of
this Act.
SEC 8. REVOCATION BY MEMBERS OF THE CLERGY OF EX-
EMPTION 
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 therefor (in such form and manner, and
with such official, as may be prescribed in regulations made
under chapter 2 of such Code), if such application is filed
no later than the due date of the Federal income tax return
(including any extension thereof) for the applicant’s second
taxable year beginning after December 31, 1998. 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 application, either with
respect to the applicant’s first taxable year beginning after
December 31, 1998, or with respect to the applicant’s second
taxable year beginning after such date, and for all succeed-
ing taxable years; and the applicant for any such revoca-
tion may not thereafter again file application for an exemp-
tion under such section 1402(e)(1). If the application is
filed after the due date of the applicant’s Federal income
tax return for a taxable year and is effective with respect
to that taxable year, it shall include or be accompanied by
payment in full of an amount equal to the total of the taxes
that would have been imposed by section 1401 of the Inter-
nal Revenue Code of 1986 with respect to all of the appli-
cant’s income derived in that taxable year which would
have constituted net earnings from self-employment for pur-
poses of chapter 2 of such Code (notwithstanding section
1402 (c)(4) or (c)(5) 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, 1998, 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-
employment income in the case of deaths occurring in or
after such calendar year).
SEC. 9. 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).
Amend the title so as to read: ‘‘A bill to amend the
Social Security Act to establish a Ticket to Work and
Self-Sufficiency Program in the Social Security Adminis-
tration to provide beneficiaries with disabilities meaning-
ful opportunities to work, to extend Medicare coverage
for such beneficiaries, and to make additional miscellane-
ous amendments relating to social security.’’.