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
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.
(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) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There is authorized to be 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.
(B) LIMITATION ON PAYMENTS.—In no case
may—
(i) the aggregate amount of payments
made by the Secretary to States under this
section, other than for administrative ex-
penses described in clause (ii), exceed
$300,000,000;
(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-
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.).
SEC. 205. 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.
TITLE III—DEMONSTRATION
PROJECTS AND STUDIES
SEC. 301. EXTENSION OF DISABILITY INSURANCE PROGRAM
DEMONSTRATION PROJECT AUTHORITY.
(a) EXTENSION OF AUTHORITY.—Title II of the Social
Security Act (42 U.S.C. 401 et seq.) is amended 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
100
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;
‘‘(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,
101
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
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.
102
‘‘(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 requirements of section 1148
as they relate to the program established under this title,
and the Secretary may (upon the request of the Commis-
sioner) waive compliance with the benefits requirements of
title XVIII, insofar as is necessary for a thorough evalua-
tion of the alternative methods under consideration. No such
experiment or 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
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 experiments and demonstration
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) REPORTS.—
103
‘‘(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 annual interim report on the progress of the ex-
periments and demonstration projects carried out
under this subsection together with any related data
and materials that the Commissioner may consider
appropriate.
‘‘(2) TERMINATION
AND
FINAL
REPORT.—The
authority under the preceding provisions of this sec-
tion (including any waiver granted pursuant to sub-
section (c)) shall terminate 5 years after the date of
the enactment of this Act. 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 or demonstration
project.’’.
(b) CONFORMING AMENDMENTS; TRANSFER OF PRIOR
AUTHORITY.—
(1) CONFORMING AMENDMENTS.—
104
(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-
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).
105
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 benefits
payable under section 223 of such Act, or under section 202
of such Act based on the beneficiary’s disability, are reduced
by $1 for each $2 of the 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 Com-
missioner shall determine is sufficient to adequately evalu-
ate the appropriateness of national implementation of such
a program. Such projects shall identify reductions in Fed-
eral expenditures that may result from the permanent im-
plementation 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—
106
(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 Ticket to Work and Work Incentives Ad-
visory Panel pursuant to section 101(f)(2)(B)(ii) of
this Act.
(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;
107
(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 such 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
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
108
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-
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.
109
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-
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
110
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 such 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 such 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
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
111
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 such 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
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
112
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
(3) with respect to the disregard described in sec-
tion 1612(b)(7) of such Act (42 U.S.C. 1382a(b)(7))
(relating to grants, scholarships, or fellowships re-
ceived for use in paying the cost of tuition and fees
113
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 such 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.
(e) STUDY BY THE GENERAL ACCOUNTING OFFICE OF
SOCIAL SECURITY ADMINISTRATION’S DISABILITY INSUR-
ANCE PROGRAM DEMONSTRATION AUTHORITY.—
114
(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 the results of the Social Security Adminis-
tration’s efforts to conduct disability demonstrations
authorized under prior law as well as under section
301 of this Act.
(2) REPORT.—Not later than 5 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 section, together with a
recommendation as to whether the demonstration au-
thority authorized under section 301 of this Act
should be made permanent.
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
115
105(a)(5) of the Contract with America Advancement Act
of 1996 (42 U.S.C. 405 note) 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 based on disability, which has been de-
nied in whole before the date of the enactment of
this Act, may not be considered to be finally ad-
judicated 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-
116
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) 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:
‘‘(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).’’.
117
(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-
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-
118
rying out paragraph (1) and other provisions of this
title; 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) There are authorized to be transferred from the
Federal Old-Age and Survivors Insurance Trust Fund and
119
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 shall maintain, and shall pro-
vide on a reimbursable basis, information obtained pursu-
ant to agreements entered into under this paragraph to any
agency administering a Federal or federally-assisted cash,
food, or medical assistance program for eligibility and other
administrative purposes under such program.’’.
(2) CONFORMING AMENDMENTS 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
(C) by adding at the end the following:
‘‘(viii) matches performed pursuant to
section 202(x)(3) or 1611(e)(1) of the Social
Security 
Act 
(42 
U.S.C. 
402(x)(3),
1382(e)(1));’’.
(3) CONFORMING AMENDMENTS TO TITLE XVI.—
(A) Section 1611(e)(1)(I)(i)(I) of the Social
Security Act (42 U.S.C. 1382(e)(1)(I)(i)(I)) is
120
amended by striking ‘‘; and’’ and inserting ‘‘and
the other provisions of this title; and’’.
(B) Section 1611(e)(1)(I)(ii)(II) of such Act
(42 U.S.C. 1382(e)(1)(I)(ii)(II)) is amended by
striking ‘‘is authorized to provide, on a reim-
bursable basis,’’ and inserting ‘‘shall maintain,
and shall provide on a reimbursable basis,’’.
(C) Section 1611(e)(1)(I)(ii)(II) of such Act
(42 U.S.C. 1382(e)(1)(I)(ii)(II)) is amended by
striking ‘‘eligibility purposes’’ and inserting ‘‘eli-
gibility and other administrative purposes under
such program’’.
(4) 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 which’’ and inserting ‘‘ending
121
with or during or beginning with or during a
period of more than 30 days throughout all of
which’’;
(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) 50 PERCENT REDUCTION IN TITLE XVI PAY-
MENT IN CASE INVOLVING COMPARABLE TITLE II PAY-
MENT.—Section 1611(e)(1)(I) of the Social Security
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
122
(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 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) ELIMINATION
OF
OVERLY
BROAD
EXEMP-
TION.—Section 1611(e)(1)(I)(iii) of such Act (as re-
designated 
by 
paragraph 
(1)(B)) 
is 
amended
further—
(A) by striking ‘‘(I) The provisions’’ and all
that follows through ‘‘(II)’’; and