tled to benefits under section 202(d) on the basis of
the wages and self-employment income of such bene-
ficiaries, shall be charged to the Federal Disability
Insurance Trust Fund, and all other money paid
from the Trust Funds under this section shall be
charged to the Federal Old-Age and Survivors Insur-
ance Trust Fund. The Commissioner of Social Secu-
rity shall determine according to such methods and
procedures as shall be prescribed under this sec-
tion—
‘‘(A) the total amount to be paid to pro-
gram managers and employment networks
under this section, and
‘‘(B) subject to the provisions of the pre-
ceding sentence, the amount which should be
charged to each of the Trust Funds.
‘‘(2) TITLE XVI DISABILITY BENEFICIARIES.—
Amounts authorized to be appropriated to the Social
Security Administration under section 1601 (as in
effect pursuant to the amendments made by section
301 of the Social Security Amendments of 1972)
shall include amounts necessary to carry out the
provisions of this section with respect to title XVI
disability beneficiaries.
‘‘(j) DEFINITIONS.—For purposes of this section—
‘‘(1) DISABLED BENEFICIARY.—The term ‘dis-
abled beneficiary’ means a title II disability bene-
ficiary or a title XVI disability beneficiary.
‘‘(2) TITLE II DISABILITY BENEFICIARY.—The
term ‘title II disability beneficiary’ means an individ-
ual entitled to disability insurance benefits under
section 223 or to monthly insurance benefits under
section 202 based on such individual’s disability (as
defined in section 223(d)). An individual is a title II
disability beneficiary for each month for which such
individual is entitled to such benefits.
‘‘(3) TITLE
XVI
DISABILITY
BENEFICIARY.—
The term ‘title XVI disability beneficiary’ means an
individual eligible for supplemental security income
benefits under title XVI on the basis of blindness
(within the meaning of section 1614(a)(2)) or dis-
ability (within the meaning of section 1614(a)(3)).
An individual is a title XVI disability beneficiary for
each month for which such individual is eligible for
such benefits.
‘‘(k) REGULATIONS.—The Commissioner of Social
Security shall prescribe such regulations as are necessary
to carry out the provisions of this section.’’.
(b) CONFORMING AMENDMENTS.—
(1) AMENDMENTS TO TITLE II.—
(A) Section 222(a) of such Act (42 U.S.C.
422(a)) is repealed.
(B) Section 222(b) of such Act is repealed.
(C) Section 225(b)(1) of such Act (42
U.S.C. 425(b)(1)) is amended by striking ‘‘a
program of vocational rehabilitation services’’
and inserting ‘‘a program consisting of the
Ticket to Work and Self-Sufficiency Program
under section 1147 or another program of voca-
tional rehabilitation services, employment serv-
ices, or other support services’’.
(2) AMENDMENTS TO TITLE XVI.—
(A) Section 1615(a) of such Act (42
U.S.C. 1382d(a)) is amended to read as follows:
‘‘SEC. 1615. (a) In the case of any blind or disabled
individual who—
‘‘(1) has not attained age 16, and
‘‘(2) with respect to whom benefits are paid
under this title,
the Commissioner of Social Security shall make provision
for referral of such individual to the appropriate State
agency administering the State program under title V.’’.
(B) Section 1615(c) of such Act is re-
pealed.
(c) EFFECTIVE DATE.—Subject to subsection (d),
the amendments made by subsections (a) and (b) shall
take effect with the first month following one year after
the date of the enactment of this Act.
(d) GRADUATED IMPLEMENTATION OF PROGRAM.—
(1) IN
GENERAL.—Not later than 360 days
after the date of the enactment of this Act, the
Commissioner of Social Security shall commence im-
plementation of the amendments made by this sec-
tion (other than paragraphs (1)(B) and (2)(B) of
subsection (b)) in graduated phases at phase-in sites
selected by the Commissioner. Such phase-in sites
shall be selected so as to ensure, prior to full imple-
mentation of the Ticket to Work and Self-Suffi-
ciency Program, the development and refinement of
referral processes, payment systems, computer link-
ages, management information systems, and admin-
istrative processes necessary to provide for full im-
plementation of such amendments.
(2) REQUIREMENTS.—Implementation of the
Program at each phase-in site shall be carried out
on a wide enough scale to permit a thorough evalua-
tion of the alternative methods under consideration,
so as to ensure that the most efficacious methods
are determined and in place for full implementation
of the Program on a timely basis.
(3) FULL
IMPLEMENTATION.—The Commis-
sioner shall ensure that the Program is fully imple-
mented as soon as practicable on or after the effec-
tive date specified in subsection (c) but not later
than six years after such date.
(4) ONGOING EVALUATION OF PROGRAM.—
(A) IN
GENERAL.—The Commissioner
shall design and conduct a series of evaluations
to assess the cost-effectiveness of activities car-
ried out under this section and the amendments
made thereby, as well as the effects of this sec-
tion and the amendments made thereby on
work outcomes for beneficiaries receiving tickets
to work and self-sufficiency under the Program.
(B) METHODOLOGY.—
(i) DESIGN AND IMPLEMENTATION.—
The Commissioner shall design the series
of evaluations after receiving relevant ad-
vice from experts in the fields of disability,
vocational rehabilitation, and program
evaluation. In designing and carrying out
such evaluations, the Commissioner shall
consult with the Comptroller General of
the United States and other agencies of
the Federal Government and with private
organizations with appropriate expertise.
Before provision of services begins under
any phase of Program implementation, the
Commissioner shall ensure that plans for
such evaluations and data collection meth-
ods are in place and ready for implementa-
tion.
(ii) SPECIFIC
MATTERS
TO
BE
AD-
DRESSED.—Each such evaluation shall ad-
dress (but is not limited to):
(I) the annual cost (including net
cost) of the Program and the annual
cost (including net cost) that would
have been incurred in the absence of
the Program;
(II) the determinants of return to
work, including the characteristics of
beneficiaries in receipt of tickets
under the Program;
(III) the types of employment
services, vocational rehabilitation serv-
ices, and other support services fur-
nished to beneficiaries in receipt of
tickets under the Program who return
to work and to those who do not re-
turn to work;
(IV) the duration of employment
services, vocational rehabilitation serv-
ices, and other support services fur-
nished to beneficiaries in receipt of
tickets under the Program who return
to work and the duration of such serv-
ices furnished to those who do not re-
turn to work and the cost to employ-
ment networks of furnishing such
services;
(V) the employment outcomes,
including wages, occupations, benefits,
and hours worked, of beneficiaries
who return to work after receiving
tickets under the Program and those
who return to work without receiving
such tickets;
(VI) the characteristics of provid-
ers whose services are provided within
an employment network under the
Program;
(VII) the extent (if any) to which
employment networks display a great-
er willingness to provide services to
disabled beneficiaries;
(VIII) the characteristics (includ-
ing employment outcomes) of those
beneficiaries 
who 
receive 
services
under the outcome payment system
and of those beneficiaries who receive
services under the outcome-milestone
payment system; and
(IX) measures of satisfaction
among beneficiaries in receipt of tick-
ets under the Program.
(C) PERIODIC
EVALUATION
REPORTS.—
Following the close of the third and fifth fiscal
years ending after the effective date under sub-
section (c), and prior to the close of the seventh
fiscal year ending after such date, the Commis-
sioner shall transmit to the Committee on Ways
and Means of the House of Representatives and
the Committee on Finance of the Senate a re-
port containing the Commissioner’s evaluation
of the progress of activities conducted under the
provisions of this section and the amendments
made thereby. Each such report shall set forth
the Commissioner’s evaluation of the extent to
which the Program has been successful and the
Commissioner’s conclusions on whether or how
the Program should be modified. Each such re-
port shall include such data, findings, materials,
and recommendations as the Commissioner may
consider appropriate.
(e) THE TICKET TO WORK AND SELF-SUFFICIENCY
ADVISORY PANEL.—
(1) ESTABLISHMENT.—There is established in
the Social Security Administration a panel to be
known as the ‘‘Ticket to Work and Self-Sufficiency
Advisory Panel’’ (in this subsection referred to as
the ‘‘Panel’’).
(2) DUTIES OF PANEL.—It shall be the duty of
the Panel to—
(A) advise the Commissioner of Social Se-
curity on establishing phase-in sites for the
Ticket to Work and Self-Sufficiency Program
and on fully implementing the Program there-
after,
(B) advise the Commissioner with respect
to the refinement of access of disabled bene-
ficiaries to employment networks, payment sys-
tems, and management information systems
and advise the Commissioner whether such
measures are being taken to the extent nec-
essary to ensure the success of the Program,
(C) advise the Commissioner regarding the
most effective designs for research and dem-
onstration projects associated with the Program
or conducted pursuant to subsection (h), and
(D) furnish progress reports on the Pro-
gram to the President and each House of the
Congress.
(3) MEMBERSHIP.—
(A) NUMBER
AND
APPOINTMENT.—The
Panel shall be composed of 6 members as fol-
lows:
(i) 1 member appointed by the Chair-
man of the Committee on Ways and Means
of the House of Representatives;
(ii) 1 member appointed by the rank-
ing minority member of the Committee on
Ways and Means of the House of Rep-
resentatives;
(iii) 1 member appointed by the
Chairman of the Committee on Finance of
the Senate;
(iv) 1 member appointed by the rank-
ing minority member of the Committee on
Finance of the Senate; and
(v) 2 members appointed by the Presi-
dent, not more than 1 of whom may be of
the same political party.
(B) REPRESENTATION.—Of the members
appointed under subparagraph (A)—
(i) at least one shall represent the in-
terests of recipients of employment serv-
ices, vocational rehabilitation services, and
other support services,
(ii) at least one shall represent the in-
terests of providers of employment serv-
ices, vocational rehabilitation services, and
other support services, and
(iii) at least one shall represent the
interests of private employers.
(C) TERMS.—
(i) IN GENERAL.—Each member shall
be appointed for a term of 4 years (or, if
less, for the remaining life of the Panel),
except as provided in clauses (ii) and (iii).
(ii) 
TERMS
OF
INITIAL
AP-
POINTEES.—As designated by the Presi-
dent at the time of appointment, of the
members first appointed—
(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 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 equal to the daily equivalent of
the rate of basic pay for level 4 of the Senior
Executive 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 ac-
tual performance 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 sec-
tions 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
Director who shall be appointed by the Panel.
The Director shall be paid at a rate not to ex-
ceed 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
considers appropriate.
(C) EXPERTS
AND
CONSULTANTS.—Sub-
ject to rules prescribed by the Panel, the Direc-
tor may procure temporary and intermittent
services under section 3109(b) of title 5, United
States Code.
(D) STAFF
OF
FEDERAL
AGENCIES.—
Upon request of the Panel, the head of any
Federal 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 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
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 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.
(D) 
ADMINISTRATIVE
SUPPORT
SERV-
ICES.—Upon the request of the Panel, the Ad-
ministrator of General Services shall provide to
the Panel, on a reimbursable basis, the admin-
istrative support services necessary for the
Panel to carry out its duties under this sub-
section.
(6) REPORTS.—
(A) INTERIM REPORTS.—The Panel shall
submit to the President and the Congress in-
terim reports at least annually.
(B) FINAL
REPORT.—The Panel shall
transmit a final report to the President and the
Congress not later than eight years after the
date of the enactment of this Act. The final re-
port shall contain a detailed statement of the
findings and conclusions of the Panel, together
with its recommendations for legislation and ad-
ministrative 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
Federal Old-Age and Survivors Insurance Trust
Fund, the Federal Disability Insurance Trust Fund,
and the general fund of the Treasury, as appro-
priate, 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
REGULATIONS.—The matters which shall be ad-
dressed 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 existing beneficiaries pursuant to section
1147(b)(1) of such Act;
(B) the format and wording of such tick-
ets, which shall incorporate by reference any
contractual terms governing service by employ-
ment networks under the Program;
(C) the form and manner in which State
agencies may elect participation in the Ticket to
Work and Self-Sufficiency Program (and revoke
such 
an 
election) 
pursuant 
to 
section
1147(c)(1) of such Act and provision for peri-
odic opportunities for exercising such elections
(and revocations);
(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 sec-
tion 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
methods of recruitment of employment net-
works utilized pursuant to paragraph (2)
of section 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
section 1147(f)(2)(B) of such Act in select-
ing 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
networks must conform under section
1147(f)(4) of such Act;
(G) standards which must be met by indi-
vidual employment 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
elections by employment networks of pay-
ment systems are to be exercised pursuant
to section 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
responsive 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(j)(1) of the Social Se-
curity Act as amended by this Act) with respect to inquir-
ies 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 eval-
uating, through the collection of data, a program for
title II disability beneficiaries (as defined in section
1147(j)(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 determined by the Commissioner. Such projects
shall be conducted at a number of localities which
the Commissioner shall determine is sufficient to
adequately evaluate the appropriateness of national
implementation of such a program. Such projects
shall identify reductions in Federal expenditures
that may result from the permanent implementation
of such a program.
(2) SCOPE AND SCALE AND MATTERS TO BE
DETERMINED.—
(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 Tick-
et to Work and Self-Sufficiency Program,
and
(iii) the savings that accrue to the
Trust Funds under the project being test-
ed.
The Commissioner shall take into account ad-
vice provided by the Ticket to Work and Self-
Sufficiency Advisory Panel pursuant to sub-
section (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
(including 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
beneficiaries 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.
(3) WAIVERS.—The Commissioner may waive
compliance with the benefit requirements 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 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, 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 Representatives
and to the Committee on Finance of the Senate.
Periodic reports on the progress of such experiments
and 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 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
interim report on the progress of the experiments
and demonstration projects carried out under this
subsection together with any related data and mate-