(ii) 
TERMS
OF
INITIAL
AP-
POINTEES.—As designated by the Commis-
sioner at the time of appointment, of the
members first appointed—
(I) 6 of the members appointed
under subparagraph (A) shall be ap-
pointed for a term of 2 years; and
(II) 6 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 expi-
ration of that member’s term until a suc-
cessor 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 sec-
tions 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 Commis-
sioner. 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
Director 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
Director considers appropriate.
(C) EXPERTS
AND
CONSULTANTS.—Sub-
ject to rules prescribed by the Commissioner,
the Director may procure temporary and inter-
mittent 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 department or agency may detail, on a
reimbursable basis, any of the personnel of that
department or agency to the Panel to assist it
in carrying 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
testimony and evidence as the Panel considers
appropriate.
(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 sub-
section.
(C) MAILS.—The Panel may use the
United States mails in the same manner and
under the same conditions as other departments
and agencies of the United States.
(6) REPORTS.—
(A) INTERIM REPORTS.—The Panel shall
submit to the President and Congress interim
reports at least annually.
(B) FINAL
REPORT.—The Panel shall
transmit a final report to the President and
Congress not later than 8 years after the date
of 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) 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
monthly insurance benefits under section 202 based on
such individual’s disability (as defined in section 223(d))
has received 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 regularly
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 ex-
ceed the level of earnings established by the Com-
missioner to represent substantial gainful activity.’’.
SEC. 212. EXPEDITED REINSTATEMENT OF DISABILITY
BENEFITS.
(a) OASDI BENEFITS.—Section 223 of the Social
Security Act (42 U.S.C. 423) is amended—
(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
therefore; 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
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 entitlement described in clause (i); and
‘‘(iii) the individual’s disability renders the indi-
vidual unable to perform substantial gainful activity.
‘‘(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
Commissioner 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
Commissioner may prescribe.
‘‘(ii) A request for reinstatement shall include express
declarations by the individual that the individual meets the
requirements specified in clauses (ii) and (iii) 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 Commis-
sioner 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
subsection (f) shall apply.
‘‘(4)(A)(i) Subject to clause (ii), entitlement to bene-
fits reinstated under this subsection shall commence with
the benefit payable for the month in which a request for
reinstatement is filed.
‘‘(ii) An individual whose entitlement to a benefit for
any month would have been reinstated under this sub-
section had the individual filed a request for reinstatement
before the end of such month shall be entitled to such ben-
efit for such month if such request for reinstatement is
filed before the end of the twelfth month immediately suc-
ceeding 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 de-
termined in accordance with the provisions of this title.
‘‘(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 reinstate-
ment filed in accordance with paragraph (2) shall be re-
duced by the amount of any provisional benefit paid to
such individual 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
payable 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.
‘‘(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 individ-
ual’s wages and self-employment income may be reinstated
with respect to any person previously entitled to such ben-
efits on the basis of an application if the Commissioner
determines that such person satisfies all the requirements
for entitlement to such benefits except requirements re-
lated 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 entitlement of such individual.
‘‘(6) An individual to whom benefits are payable
under this section or section 202 pursuant to a reinstate-
ment 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 appropriate, of the termination month in accordance
with subsection (a)(1) of this section, or subsection (d)(1),
(e)(1), or (f)(1) of section 202, to be entitled to such bene-
fits 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 pro-
visional benefits payable in accordance with this para-
graph, unless the Commissioner determines that the indi-
vidual does not meet the requirements of paragraph
(1)(B)(i) or that the individual’s declaration under para-
graph (2)(A)(ii) is false. Any such determination by the
Commissioner shall be final and not subject to review
under subsection (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 ac-
cordance 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
‘‘(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 in-
dividual 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
Security Act (42 U.S.C. 1383) is amended by add-
ing 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
determines that an individual described in subparagraph
(B) has filed a request for reinstatement meeting the re-
quirements of paragraph (2)(A) during the period pre-
scribed in subparagraph (C). Reinstatement of eligibility
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 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 ineli-
gible 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
disability that gave rise to the eligibility described in
clause (i);
‘‘(iii) the individual’s blindness or disability ren-
ders the individual unable to perform substantial
gainful activity; and
‘‘(iv) the individual satisfies the nonmedical re-
quirements for eligibility for benefits under this title.
‘‘(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
Commissioner 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
Commissioner 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 Commis-
sioner determines is not eligible for reinstated benefits
under this subsection.
‘‘(3) In determining whether an individual meets the
requirements of paragraph (1)(B)(ii), the provisions of
section 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 rein-
statement is filed.
‘‘(B)(i) Subject to clause (ii), the amount of the ben-
efit payable for any month pursuant to the reinstatement
of eligibility under this subsection shall be determined in
accordance 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
pursuant 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
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 re-
quirements related to the filing of an application. The pro-
visions of paragraph (4) shall apply to the reinstated eligi-
bility of the spouse to the same extent that they apply
to the reinstated 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 consecutive) 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 pro-
visional benefits payable in accordance with this para-
graph, unless the Commissioner determines that the indi-
vidual does not meet the requirements of paragraph
(1)(B)(i) or that the individual’s declaration under para-
graph (2)(A)(ii) is false. Any such determination by the
Commissioner shall be final and not subject to review
under paragraph (1) or (3) of subsection (c).
‘‘(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 pre-
viously an eligible spouse of the individual under this title
and the Commissioner determines that such spouse satis-
fies all the requirements of section 1614(b) except require-
ments 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 rein-
statement 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
‘‘(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 in-
dividual 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
period and inserting ‘‘, or has filed a request
for reinstatement of eligibility under subsection
(p)(2) and been determined to be eligible for re-
instatement.’’.
(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 ‘‘eli-
gible’’.
(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 ef-
fective date described in paragraph (1).
Subtitle C—Work Incentives
Planning, 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
established under section 201(f) of the Work Incen-
tives Improvement Act of 1999, shall establish a
community-based work incentives planning and as-
sistance program for the purpose of disseminating
accurate information to disabled beneficiaries on
work incentives programs and issues related to such
programs.
‘‘(2) GRANTS, 
COOPERATIVE
AGREEMENTS,
CONTRACTS, AND OUTREACH.—Under the program
established under this section, the Commissioner
shall—
‘‘(A) establish a competitive program of
grants, cooperative agreements, or contracts to
provide benefits planning and assistance, in-
cluding information on the availability of pro-
‘‘(C) establish a corps of trained, acces-
sible, and responsive work incentives specialists
within the Social Security Administration who
will specialize in disability work incentives
under titles II and XVI for the purpose of dis-
seminating accurate 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—
‘‘(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
PRO-
GRAMS.—The responsibilities of the Commissioner
established under this section shall be coordinated
with other public and private programs that provide
information and assistance regarding rehabilitation
services and independent living supports and bene-
fits planning for disabled beneficiaries including the
program under section 1619, the plans for achieving
self-support 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,
transition services (as defined in, and provided in ac-
cordance with, the Individuals with Disabilities Edu-
cation Act (20 U.S.C. 1400 et seq.)), a one-stop de-
livery 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 sub-
mit an application for a grant, cooperative
agreement, or contract to provide benefits plan-
ning and assistance to the Commissioner at
such time, in such manner, and containing such
information as the Commissioner may deter-
mine is necessary to meet the requirements of
this section.
‘‘(B) 
STATEWIDENESS.—The 
Commis-
sioner shall ensure that the planning, assist-
ance, and information described in paragraph
(2) shall be available on a statewide basis.
‘‘(C) ELIGIBILITY
OF
STATES
AND
PRI-
VATE 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-
scribed in clause (ii), that the Commis-
sioner determines is qualified to provide
the planning, 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.
‘‘(D) EXCLUSION
FOR
CONFLICT
OF
IN-
TEREST.—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
agreement, 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
individual 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
individual; and
‘‘(C) availability of protection and advo-
cacy services for disabled beneficiaries and how
to access such services.
‘‘(3) 
AMOUNT
OF
GRANTS, 
COOPERATIVE
AGREEMENTS, OR CONTRACTS.—
‘‘(A) BASED
ON
POPULATION
OF
DIS-
ABLED
BENEFICIARIES.—Subject to subpara-
graph (B), the Commissioner shall award a
grant, cooperative agreement, or contract under
this section to an entity based on the percent-
age of the population of the State where the en-
tity is located who are disabled beneficiaries.
‘‘(B) LIMITATIONS.—
‘‘(i) PER GRANT.—No entity shall re-
ceive 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
CONTRACTS.—The total amount of all
grants, cooperative agreements, and con-
tracts awarded under this section for a fis-
cal 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.
‘‘(c) DEFINITIONS.—In this section:
‘‘(1) 
COMMISSIONER.—The 
term 
‘Commis-
sioner’ 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).’’.
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 pursu-
ant to part C of title I of the Developmental Disabilities
Assistance and Bill of Rights Act (42 U.S.C. 6041 et seq.)
for the purpose of providing services to disabled bene-
ficiaries.
‘‘(b) SERVICES PROVIDED.—Services provided to dis-
abled beneficiaries pursuant to a payment made under this
section may include—
‘‘(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
‘‘(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 appro-
priated to carry out this section in the preceding fis-
cal year, the Commissioner shall increase each min-
imum payment under subparagraphs (A) and (B) of
paragraph (1) by a percentage equal to the percent-
age increase in the total amount appropriated to
carry out this section between the preceding fiscal
year and the fiscal year involved.
‘‘(e) ANNUAL REPORT.—Each protection and advo-
cacy system that receives a payment under this section
shall submit an annual report to the Commissioner and
the Work Incentives Advisory Panel established under sec-
tion 201(f) of the Work Incentives Improvement Act of
1999 on the services provided to individuals by the system.
‘‘(f) FUNDING.—
‘‘(1) ALLOCATION OF PAYMENTS.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), payments under this section shall be
made from amounts made available for the ad-
ministration of title II and amounts made avail-
able for the administration of title XVI, and
shall be allocated among those amounts as ap-
propriate.
‘‘(B) LIMITATION.—Payments under this
section shall not exceed $7,000,000 for fiscal
100
year 2000, and such sums as may be necessary
for any fiscal year thereafter.
‘‘(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
advocacy system until the end of the succeeding fis-
cal year.
‘‘(g) DEFINITIONS.—In this section:
‘‘(1) 
COMMISSIONER.—The 
term 
‘Commis-
sioner’ 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
protection and advocacy system established pursuant
to part C of title I of the Developmental Disabilities
Assistance and Bill of Rights Act (42 U.S.C. 6041
et seq.).’’.
101
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
amended by adding at the end the following:
‘‘DEMONSTRATION PROJECT AUTHORITY
‘‘SEC. 234. (a) AUTHORITY.—
‘‘(1) IN GENERAL.—The Commissioner of So-
cial Security (in this section referred to as the ‘Com-
missioner’) shall develop and carry out experiments
and demonstration projects designed to determine
the relative advantages and disadvantages of—
‘‘(A) various alternative methods of treat-
ing the work activity of individuals entitled to
disability insurance benefits under section 223
or to monthly insurance benefits under section
202 based on such individual’s disability (as de-
fined in section 223(d)), including such meth-
ods as a reduction in benefits based on earn-
ings, designed to encourage the return to work
of such individuals;
102
‘‘(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 fa-
cilitate the administration of this title.
‘‘(2) AUTHORITY FOR EXPANSION OF SCOPE.—
The Commissioner may expand the scope of any
103
such experiment or demonstration project to include
any group of applicants for benefits under the pro-
gram established under this title with impairments
that reasonably may be presumed to be disabling for
purposes 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 presumption.
‘‘(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 alter-
native methods under consideration while giving assurance
that the results derived from the experiments and projects
will obtain generally in the operation of the disability in-
surance 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
BENEFITS REQUIREMENTS.—In the case of any experi-
ment or demonstration project conducted under subsection
(a), the Commissioner may waive compliance with the ben-
efit requirements of this title, and the Secretary may
(upon the request of the Commissioner) waive compliance
104
with the 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 actually placed in operation unless at least
90 days prior thereto a written report, prepared for pur-
poses of notification and information only and containing
a full and complete description thereof, has been trans-
mitted 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 sub-
section (a).
‘‘(d) REPORTS.—
‘‘(1) INTERIM REPORTS.—On or before June 9
of each year, 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 an interim report on the progress of the
experiments and demonstration projects carried out
under this subsection together with any related data
105
and materials that the Commissioner may consider
appropriate.
‘‘(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
subsection (c) of section 505 of the Social Secu-
rity Disability Amendments of 1980 (42 U.S.C.
1310 note) are repealed.
(B) CONFORMING
AMENDMENT
REGARD-
ING
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’’.
106
(2) TRANSFER
OF
PRIOR
AUTHORITY.—With
respect to any experiment or demonstration project
being conducted under section 505(a) of the Social
Security 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 dem-
onstration project (including the terms and condi-
tions applicable 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 Commis-
107
sioner shall determine is sufficient to adequately evaluate
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
carried out on a wide enough scale to permit a thor-
ough 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-
Sufficiency 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,
108
and other Federal programs under the project
being tested.
The Commissioner shall take into account advice
provided by the Work Incentives Advisory Panel pur-
suant to section 201(f)(2)(B)(ii).
(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
Security Act, and the Secretary of Health and Human
Services may waive compliance with the benefit require-
109
ments of title XVIII of that Act, insofar 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 informa-
tion 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 Sen-
ate. Periodic reports on the progress of such projects shall
be submitted by the Commissioner to such committees.
When appropriate, such reports shall include detailed rec-
ommendations 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 demonstra-
tion projects carried out under this subsection together
with any related data and materials that the Commis-
sioner 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.
110
(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.
SEC. 303. STUDIES AND REPORTS.
(a) STUDY BY GENERAL ACCOUNTING OFFICE OF
EXISTING DISABILITY-RELATED EMPLOYMENT INCEN-
TIVES.—
(1) STUDY.—As soon as practicable after the
date of enactment of this Act, the Comptroller Gen-
eral 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
specifically address the extent to which such credits
and other incentives would encourage employers to
hire and retain individuals with disabilities.
111
(2) REPORT.—Not later than 3 years after the
date of enactment of this Act, the Comptroller Gen-
eral shall transmit to the Committee on Ways and
Means of the House of Representatives and the
Committee on Finance of the Senate a written re-
port presenting the results of the Comptroller Gen-
eral’s study conducted pursuant to this subsection,
together with such recommendations for legislative
or administrative changes as the Comptroller Gen-
eral determines are appropriate.
(b) STUDY BY GENERAL ACCOUNTING OFFICE OF
EXISTING COORDINATION OF THE DI AND SSI PROGRAMS
AS THEY RELATE TO INDIVIDUALS ENTERING OR LEAV-
ING CONCURRENT ENTITLEMENT.—
(1) STUDY.—As soon as practicable after the
date of enactment of this Act, the Comptroller Gen-
eral 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 that Act, as such
programs relate to individuals entering or leaving
concurrent entitlement under such programs. In
such study, the Comptroller General shall specifically
address the effectiveness of work incentives under
112
such programs with respect to such individuals and
the effectiveness 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 Gen-
eral shall transmit to the Committee on Ways and
Means of the House of Representatives and the
Committee on Finance of the Senate a written re-
port presenting the results of the Comptroller Gen-
eral’s study conducted pursuant to this subsection,
together with such recommendations for legislative
or administrative changes as the Comptroller Gen-
eral 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 Gen-
eral 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 section 202 of that Act (42 U.S.C. 402) on
the basis of a recipient having a disability, and the
113
effect of such level as a disincentive for those recipi-
ents 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 Gen-
eral shall transmit to the Committee on Ways and
Means of the House of Representatives and the
Committee on Finance of the Senate a written re-
port presenting the results of the Comptroller Gen-
eral’s study conducted pursuant to this subsection,
together with such recommendations for legislative
or administrative changes as the Comptroller Gen-
eral determines are appropriate.
(d) REPORT ON DISREGARDS UNDER THE DI AND
SSI PROGRAMS.—Not later than 90 days after the date
of enactment of this Act, the Commissioner of Social Secu-
rity 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
disregards (imposed under statutory or regulatory
authority) that are applicable to individuals receiving
114
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
section 1612(b)(7) of the Social Security Act (42
U.S.C. 1382a(b)(7)) (relating to grants, scholar-
ships, or fellowships 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
paying 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-
115
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
paying the cost of room and board at any such
institution.
TITLE IV—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.—Sec-
tion 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
individual’s claim, with respect to benefits
under title II of the Social Security Act based
116
on disability, which has been denied in whole
before the date of enactment of this Act, may
not be considered to be finally adjudicated be-
fore 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
relief 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 redetermina-
tion before the date prescribed in subparagraph
(C), the Commissioner shall perform such enti-
tlement redetermination in lieu of a continuing
disability review whenever the Commissioner de-
termines that the individual’s entitlement is
subject to redetermination based on the pre-
ceding provisions of this paragraph, and the
provisions of section 223(f) of the Social Secu-