Calendar No. 403
105TH CONGRESS
2D SESSION
H. R. 3433
AN ACT
To amend the Social Security Act to establish a
Ticket to Work and Self-Sufficiency Program in
the Social Security Administration to provide
beneficiaries with disabilities meaningful opportu-
nities to work, to extend Medicare coverage for
such beneficiaries, and to make additional mis-
cellaneous amendments relating to Social Secu-
rity.
JUNE 9, 1998
Received; read twice and ordered to be placed on the
calendar
II
Calendar No. 403
105TH CONGRESS
2D SESSION
H. R. 3433
IN THE SENATE OF THE UNITED STATES
JUNE 5, 1998
Received and read the first time
JUNE 9, 1998
Read the second time and placed on the calendar
AN ACT
To amend the Social Security Act to establish a Ticket
to Work and Self-Sufficiency Program in the Social Se-
curity Administration to provide beneficiaries with dis-
abilities meaningful opportunities to work, to extend
Medicare coverage for such beneficiaries, and to make
additional miscellaneous amendments relating to Social
Security.
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obtain employment services, vocational rehabilitation serv-
ices, or other support services from an employment net-
work which is of the beneficiary’s choice and which is will-
ing to provide such services to such beneficiary.
‘‘(b) TICKET SYSTEM.—
‘‘(1) DISTRIBUTION
OF
TICKETS.—The Com-
missioner of Social Security may issue a ticket to
work and self-sufficiency to disabled beneficiaries for
participation in the Program.
‘‘(2) ASSIGNMENT
OF
TICKETS.—A disabled
beneficiary holding a ticket to work and self-suffi-
ciency may assign the ticket to any employment net-
work of the beneficiary’s choice which is serving
under the Program and is willing to accept the as-
signment.
‘‘(3) TICKET
TERMS.—A ticket issued under
paragraph (1) shall consist of a document which evi-
dences the Commissioner’s agreement to pay (as
provided in paragraph (4)) an employment network,
which is serving under the Program and to which
such ticket is assigned by the beneficiary, for such
employment services, vocational rehabilitation serv-
ices, and other support services as the employment
network may provide to the beneficiary.
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‘‘(4) 
PAYMENTS
TO
EMPLOYMENT
NET-
WORKS.—The Commissioner shall pay an employ-
ment network under the Program in accordance with
the outcome payment system under subsection
(h)(2) or under the outcome-milestone payment sys-
tem under subsection (h)(3) (whichever is elected
pursuant to subsection (h)(1)). An employment net-
work may not request or receive compensation for
such services from the beneficiary.
‘‘(c) STATE PARTICIPATION.—
‘‘(1) PERIODIC ELECTIONS.—Each State agen-
cy administering or supervising the administration
of the State plan approved under title I of the Reha-
bilitation act of 1973 may elect to participate in the
Program (or to revoke any such election) as an em-
ployment network. The Commissioner shall provide
for periodic opportunities for exercising such elec-
tions (and revocations).
‘‘(2) TREATMENT OF STATE AGENCIES.—Any
such election (or revocation) by a State agency de-
scribed in paragraph (1) taking effect during any
period for which an individual residing in the State
is a disabled beneficiary and a client of the State
agency shall not be effective with respect to such in-
dividual to the extent that such election (or revoca-
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tion) would result in any change in the method of
payment to the State agency with respect to the in-
dividual from the method of payment to the State
agency with respect to the individual in effect imme-
diately before such election (or revocation).
‘‘(3) EFFECT
OF
PARTICIPATION
BY
STATE
AGENCY.—
‘‘(A) STATE AGENCIES PARTICIPATING.—
In any case in which a State agency described
in paragraph (1) elects under paragraph (1) to
participate in the Program—
‘‘(i) the employment services, voca-
tional rehabilitation services, and other
support services which, upon assignment of
tickets to work and self-sufficiency, are
provided to disabled beneficiaries by the
State agency acting as an employment net-
work shall be governed by plans for voca-
tional 
rehabilitation 
services 
approved
under title I of the Rehabilitation Act of
1973; and
‘‘(ii) the provisions of section 222(d)
and the provisions of subsections (d) and
(e) of section 1615 shall not apply with re-
spect to such State.
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‘‘(B) STATE
AGENCIES
ADMINISTERING
MATERNAL AND CHILD HEALTH SERVICES PRO-
GRAMS.—Subparagraph (A) shall not apply
with respect to any State agency administering
a program under title V of this Act.
‘‘(4) SPECIAL REQUIREMENTS APPLICABLE TO
CROSS-REFERRAL TO CERTAIN STATE AGENCIES.—
‘‘(A) IN GENERAL.—In any case in which
an employment network has been assigned a
ticket to work and self-sufficiency by a disabled
beneficiary, no State agency shall be deemed re-
quired, under this section, title I of the Reha-
bilitation Act of 1973, or a State plan approved
under such title, to accept any referral of such
disabled beneficiary from such employment net-
work unless such employment network and such
State agency have entered into a written agree-
ment that meets the requirements of subpara-
graph (B).
‘‘(B) TERMS OF AGREEMENT.—An agree-
ment required by subparagraph (A) shall speci-
fy, in accordance with regulations prescribed
pursuant to subparagraph (C)—
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‘‘(i) the extent (if any) to which the
employment network holding the ticket will
provide to the State agency—
‘‘(I) reimbursement for costs in-
curred in providing services described
in subparagraph (A) to the disabled
beneficiary; and
‘‘(II) other amounts from pay-
ments made by the Commissioner to
the employment network pursuant to
subsection (h); and
‘‘(ii) any other conditions that may be
required by such regulations.
‘‘(C) REGULATIONS.—The Commissioner
of Social Security and the Secretary of Edu-
cation shall jointly prescribe regulations specify-
ing the terms of agreements required by sub-
paragraph (A) and otherwise necessary to carry
out the provisions of this paragraph.
‘‘(D) PENALTY.—No payment may be
made to an employment network pursuant to
subsection (h) in connection with services pro-
vided to any disabled beneficiary if such em-
ployment network makes referrals described in
subparagraph (A) in violation of the terms of
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the contract required under subparagraph (A)
or without having entered into such a contract.
‘‘(d) RESPONSIBILITIES OF THE COMMISSIONER OF
SOCIAL SECURITY.—
‘‘(1) SELECTION AND QUALIFICATIONS OF PRO-
GRAM MANAGERS.—The Commissioner of Social Se-
curity shall enter into agreements with one or more
organizations in the private or public sector for serv-
ice as a program manager to assist the Commis-
sioner in administering the Program. Any such pro-
gram manager shall be selected by means of a com-
petitive bidding process, from among organizations
in the private or public sector with available exper-
tise and experience in the field of vocational rehabili-
tation or employment services.
‘‘(2) TENURE, RENEWAL, AND EARLY TERMI-
NATION.—Each agreement entered into under para-
graph (1) shall provide for early termination upon
failure to meet performance standards which shall be
specified in the agreement and which shall be
weighted to take into account any performance in
prior terms. Such performance standards shall in-
clude (but are not limited to)—
‘‘(A) measures for ease of access by bene-
ficiaries to services; and
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‘‘(B) measures for determining the extent
to which failures in obtaining services for bene-
ficiaries fall within acceptable parameters, as
determined by the Commissioner.
‘‘(3) PRECLUSION
FROM
DIRECT
PARTICIPA-
TION IN DELIVERY OF SERVICES IN OWN SERVICE
AREA.—Agreements under paragraph (1) shall pre-
clude—
‘‘(A) direct participation by a program
manager in the delivery of employment services,
vocational rehabilitation services, or other sup-
port services to beneficiaries in the service area
covered by the program manager’s agreement;
and
‘‘(B) the holding by a program manager of
a financial interest in an employment network
or service provider which provides services in a
geographic area covered under the program
manager’s agreement.
‘‘(4) 
SELECTION
OF
EMPLOYMENT
NET-
WORKS.—The Commissioner shall select and enter
into agreements with employment networks for serv-
ice under the Program. Such employment networks
shall be in addition to State agencies serving as em-
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ployment networks pursuant to elections under sub-
section (c).
‘‘(5) TERMINATION OF AGREEMENTS WITH EM-
PLOYMENT
NETWORKS.—The Commissioner shall
terminate agreements with employment networks for
inadequate performance, as determined by the Com-
missioner.
‘‘(6) QUALITY ASSURANCE.—The Commissioner
shall provide for such periodic reviews as are nec-
essary to provide for effective quality assurance in
the provision of services by employment networks.
The Commissioner shall take into account the views
of consumers and the program manager under which
the employment networks serve and shall consult
with providers of services to develop performance
measurements. The Commissioner shall ensure that
the results of the periodic reviews are made available
to beneficiaries who are prospective service recipients
as they select employment networks. The Commis-
sioner shall ensure the performance of periodic sur-
veys of beneficiaries receiving services under the
Program designed to measure customer service satis-
faction.
‘‘(7) DISPUTE
RESOLUTION.—The Commis-
sioner shall provide for a mechanism for resolving
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disputes between beneficiaries and employment net-
works and between program managers and employ-
ment networks. The Commissioner shall afford a
party to such a dispute a reasonable opportunity for
a full and fair review of the matter in dispute.
‘‘(e) PROGRAM MANAGERS.—
‘‘(1) IN GENERAL.—A program manager shall
conduct tasks appropriate to assist the Commis-
sioner in carrying out the Commissioner’s duties in
administering the Program.
‘‘(2) RECRUITMENT
OF
EMPLOYMENT
NET-
WORKS.—A program manager shall recruit, and rec-
ommend for selection by the Commissioner, employ-
ment networks for service under the Program. The
program manager shall carry out such recruitment
and provide such recommendations, and shall mon-
itor all employment networks serving in the Program
in the geographic area covered under the program
manager’s agreement, to the extent necessary and
appropriate to ensure that adequate choices of serv-
ices are made available to beneficiaries. Employment
networks may serve under the Program only pursu-
ant to an agreement entered into with the Commis-
sioner under the Program incorporating the applica-
ble provisions of this section and regulations there-
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under, and the program manager shall provide and
maintain assurances to the Commissioner that pay-
ment by the Commissioner to employment networks
pursuant to this section is warranted based on com-
pliance by such employment networks with the terms
of such agreement and this section. The program
manager shall not impose numerical limits on the
number of employment networks to be recommended
pursuant to this paragraph.
‘‘(3) FACILITATION
OF
ACCESS
BY
BENE-
FICIARIES
TO
EMPLOYMENT
NETWORKS.—A pro-
gram manager shall facilitate access by beneficiaries
to employment networks. The program manager
shall ensure that each beneficiary is allowed changes
in employment networks for good cause, as deter-
mined by the Commissioner, without being deemed
to have rejected services under the Program. The
program manager shall establish and maintain lists
of employment networks available to beneficiaries
and shall make such lists generally available to the
public. The program manager shall ensure that all
information provided to disabled beneficiaries pursu-
ant to this paragraph is provided in accessible for-
mat.
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‘‘(4) ENSURING
AVAILABILITY
OF
ADEQUATE
SERVICES.—The program manager shall ensure that
employment services, vocational rehabilitation serv-
ices, and other support services are provided to
beneficiaries throughout the geographic area covered
under the program manager’s agreement, including
rural areas.
‘‘(5) REASONABLE ACCESS TO SERVICES.—The
program manager shall take such measures as are
necessary to ensure that sufficient employment net-
works are available and that each beneficiary receiv-
ing services under the Program has reasonable ac-
cess to employment services, vocational rehabilitation
services, and other support services. Such services
may include case management, benefits counseling,
supported employment, career planning, career plan
development, vocational assessment, job training,
placement, follow-up services, and such other serv-
ices as may be specified by the Commissioner under
the Program. The program manager shall ensure
that such services are coordinated.
‘‘(f) EMPLOYMENT NETWORKS.—
‘‘(1) QUALIFICATIONS FOR EMPLOYMENT NET-
WORKS.—Each employment network serving under
the Program shall consist of an agency or instru-
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mentality of a State (or a political subdivision there-
of) or a private entity, which assumes responsibility
for the coordination and delivery of services under
the Program to individuals assigning to the employ-
ment network tickets to work and self-sufficiency
issued under subsection (b). No employment network
may serve under the Program unless it demonstrates
to the Commissioner substantial expertise and expe-
rience in the field of employment services, vocational
rehabilitation services, or other support services for
individuals with disabilities and provides an array of
such services. An employment network shall consist
of either a single provider of such services or of an
association of such providers organized so as to com-
bine their resources into a single entity. An employ-
ment network may meet the requirements of sub-
section (e)(4) by providing services directly, or by
entering into agreements with other individuals or
entities providing appropriate employment services,
vocational rehabilitation services, or other support
services.
‘‘(2) REQUIREMENTS RELATING TO PROVISION
OF
SERVICES.—Each employment network serving
under the Program shall be required under the
terms of its agreement with the Commissioner to—
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work shall elect which payment system will be
utilized by the employment network, and, for
such period of time as such election remains in
effect, the payment system so elected shall be
utilized exclusively in connection with such em-
ployment network (except as provided in sub-
paragraph (B)).
‘‘(B) METHOD OF PAYMENT TO EMPLOY-
MENT
NETWORKS.—Any such election by an
employment network taking effect during any
period for which a disabled beneficiary is receiv-
ing services from such employment network
shall not be effective with respect to such bene-
ficiary to the extent that such election would re-
sult in any change in the method of payment to
the employment network with respect to serv-
ices provided to such beneficiary from the meth-
od of payment to the employment network with
respect to services provided to such beneficiary
as of immediately before such election.
‘‘(2) OUTCOME PAYMENT SYSTEM.—
‘‘(A) IN GENERAL.—The outcome payment
system shall consist of a payment structure gov-
erning employment networks electing such sys-
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tem under paragraph (1)(A) which meets the
requirements of this paragraph.
‘‘(B) PAYMENTS MADE DURING OUTCOME
PAYMENT PERIOD.—The outcome payment sys-
tem shall provide for a schedule of payments to
an employment network, in connection with
each individual who is a beneficiary, for each
month, during the individual’s outcome pay-
ment period, for which benefits (described in
paragraphs (2) and (3) of subsection (k)) are
not payable to such individual.
‘‘(C) COMPUTATION OF PAYMENTS TO EM-
PLOYMENT NETWORK.—The payment schedule
of the outcome payment system shall be de-
signed so that—
‘‘(i) the payment for each of the 60
months during the outcome payment pe-
riod for which benefits (described in para-
graphs (2) and (3) of subsection (k)) are
not payable is equal to a fixed percentage
of the payment calculation base for the cal-
endar year in which such month occurs;
and
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‘‘(ii) such fixed percentage is set at a
percentage which does not exceed 40 per-
cent.
‘‘(3) 
OUTCOME-MILESTONE
PAYMENT
SYS-
TEM.—
‘‘(A) IN
GENERAL.—The outcome-mile-
stone payment system shall consist of a pay-
ment structure governing employment networks
electing such system under paragraph (1)(A)
which meets the requirements of this para-
graph.
‘‘(B) EARLY
PAYMENTS
UPON
ATTAIN-
MENT OF MILESTONES IN ADVANCE OF OUT-
COME PAYMENT PERIODS.—The outcome-mile-
stone payment system shall provide for one or
more milestones, with respect to beneficiaries
receiving services from an employment network
under the Program, which are directed toward
the goal of permanent employment. Such mile-
stones shall form a part of a payment structure
which provides, in addition to payments made
during outcome payment periods, payments
made prior to outcome payment periods in
amounts based on the attainment of such mile-
stones.
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‘‘(C) LIMITATION ON TOTAL PAYMENTS TO
EMPLOYMENT NETWORK.—The payment sched-
ule of the outcome milestone payment system
shall be designed so that the total of the pay-
ments to the employment network with respect
to each beneficiary is less than, on a net
present value basis (using an interest rate de-
termined by the Commissioner that appro-
priately reflects the cost of funds faced by pro-
viders), the total amount to which payments to
the employment network with respect to the
beneficiary would be limited if the employment
network were paid under the outcome payment
system.
‘‘(4) DEFINITIONS.—For purposes of this sub-
section—
‘‘(A) PAYMENT CALCULATION BASE.—The
term ‘payment calculation base’ means, for any
calendar year—
‘‘(i) in connection with a title II dis-
ability beneficiary, the average disability
insurance benefit payable under section
223 for all beneficiaries for months during
the preceding calendar year; and
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‘‘(ii) in connection with a title XVI
disability beneficiary (who is not concur-
rently a title II disability beneficiary), the
average payment of supplemental security
income benefits based on disability payable
under title XVI (excluding State sup-
plementation) for months during the pre-
ceding calendar year to all beneficiaries
who have attained at least 18 years of age.
‘‘(B) OUTCOME
PAYMENT
PERIOD.—The
term ‘outcome payment period’ means, in con-
nection with any individual who had assigned a
ticket to work and self-sufficiency to an employ-
ment network under the Program, a period—
‘‘(i) beginning with the first month,
ending after the date on which such ticket
was assigned to the employment network,
for which benefits (described in paragraphs
(2) and (3) of subsection (k)) are not pay-
able to such individual by reason of en-
gagement in work activity; and
‘‘(ii) ending with the 60th month
(consecutive or otherwise), ending after
such date, for which such benefits are not
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payable to such individual by reason of en-
gagement in work activity.
‘‘(5) PERIODIC REVIEW AND ALTERATIONS OF
PRESCRIBED SCHEDULES.—
‘‘(A) PERCENTAGES
AND
PERIODS.—The
Commissioner of Social Security shall periodi-
cally review the percentage specified in para-
graph (2)(C), the total payments permissible
under paragraph (3)(C), and the period of time
specified in paragraph (4)(B) to determine
whether such percentages, such permissible pay-
ments, and such period provide an adequate in-
centive for employment networks to assist bene-
ficiaries to enter the workforce, while providing
for appropriate economies. The Commissioner
may alter such percentage, such total permis-
sible payments, or such period of time to the
extent that the Commissioner determines, on
the basis of the Commissioner’s review under
this paragraph, that such an alteration would
better provide the incentive and economies de-
scribed in the preceding sentence.
‘‘(B) NUMBER
AND
AMOUNT
OF
MILE-
STONE
PAYMENTS.—The Commissioner shall
periodically review the number and amounts of
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‘‘(4) For suspension of reviews under this subsection
in the case of an individual using a ticket to work and
self-sufficiency, see section 1147(i).’’.
(B) Section 222(a) of such Act (42 U.S.C.
422(a)) is repealed.
(C) Section 222(b) of such Act (42 U.S.C.
422(b)) is repealed.
(D) 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,
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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 (42
U.S.C. 1382d(c)) is repealed.
(C) Section 1631(a)(6)(A) of such Act (42
U.S.C. 1383(a)(6)(A)) is amended by striking
‘‘a program of vocational rehabilitation serv-
ices’’ and inserting ‘‘a program consisting of
the Ticket to Work and Self-Sufficiency Pro-
gram under section 1147 or another program of
vocational rehabilitation services, employment
services, or other support services’’.
(D) Section 1633(c) of such Act (42
U.S.C. 1383b(c)) is amended—
(i) by inserting ‘‘(1)’’ after ‘‘(c)’’; and
(ii) by adding at the end the following
new paragraph:
‘‘(2) For suspension of continuing disability reviews
and other reviews under this title similar to reviews under
section 221 in the case of an individual using a ticket to
work and self-sufficiency, see section 1147(i).’’.
(c) EFFECTIVE DATE.—Subject to subsection (d),
the amendments made by subsections (a) and (b) shall
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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 one year
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)(C) and (2)(B) of
subsection (b)) in graduated phases at phase-in sites
selected by the Commissioner. Such phase-in sites
shall be selected so as to ensure, prior to full 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. Subsection (c)
shall apply with respect to paragraphs (1)(C) and
(2)(B) of subsection (b) without regard to this sub-
section.
(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
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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 and individuals using tickets to
work and self-sufficiency under the Pro-
gram. In designing and carrying out such
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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 provi-
sion of services begins under any phase of
Program implementation, the Commis-
sioner shall ensure that plans for such
evaluations and data collection methods
are in place and ready for implementation.
(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-
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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;
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(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;
(IX) measures of satisfaction
among beneficiaries in receipt of tick-
ets under the Program; and
(X) reasons for (including com-
ments solicited from beneficiaries re-
garding) their choice not to use their
tickets or their inability to return to
work despite the use of thier tickets.
(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
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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.
(5) EXTENT OF STATE’S RIGHT OF FIRST RE-
FUSAL IN ADVANCE OF FULL IMPLEMENTATION OF
AMENDMENTS IN SUCH STATE.—
(A) IN
GENERAL.—In the case of any
State in which the amendments made by sub-
section (a) have not been fully implemented
pursuant to this subsection, the Commissioner
shall determine by regulation the extent to
which—
(i) the requirement under section
222(a) of the Social Security Act for
prompt referrals to a State agency; and
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(ii) the authority of the Commissioner
under section 222(d)(2) of such Act to
provide vocational rehabilitation services in
such State by agreement or contract with
other public or private agencies, organiza-
tions, institutions, or individuals,
shall apply in such State.
(B) EXISTING AGREEMENTS.—Nothing in
subparagraph (A) or the amendments made by
subsection (a) shall be construed to limit, im-
pede, or otherwise affect any agreement entered
into pursuant to section 222(d)(2) of the Social
Security Act before the date of the enactment
of this Act with respect to services provided
pursuant to such agreement to beneficiaries re-
ceiving services under such agreement as of
such date, except with respect to services (if
any) to be provided after six years after the ef-
fective date provided in subsection (c).
(e) THE TICKET TO WORK AND SELF-SUFFICIENCY
ADVISORY PANEL.—
(1) ESTABLISHMENT.—There is established in
the executive branch a panel to be known as the
‘‘Ticket to Work and Self-Sufficiency Advisory
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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);
(D) advise the Commissioner on the devel-
opment of performance measurements relating
to quality assurance under section 1147(d)(6)
of the Social Security Act; and
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(E) 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 six members as fol-
lows:
(i) one member appointed by the
Chairman of the Committee on Ways and
Means of the House of Representatives;
(ii) one member appointed by the
ranking minority member of the Commit-
tee on Ways and Means of the House of
Representatives;
(iii) one member appointed by the
Chairman of the Committee on Finance of
the Senate;
(iv) one member appointed by the
ranking minority member of the Commit-
tee on Finance of the Senate; and
(v) two members appointed by the
President, who may not be of the same po-
litical party.
(B) REPRESENTATION.—Of the members
appointed under subparagraph (A), at least
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four shall have experience or expert knowledge
as a recipient, provider, employer, or employee
in the fields of, or related to, employment serv-
ices, vocational rehabilitation services, and
other support services, of whom—
(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;
(iii) at least one shall represent the
interests of private employers;
(iv) at least one shall represent the in-
terests of employees; and
(v) at least one shall be an individual
who is or has been a recipient of benefits
under title II or title XVI based on disabil-
ity.
(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),
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except as provided in clauses (ii) and (iii).
The initial members shall be appointed not
later than 90 days after the date of the en-
actment of this Act.
(ii) 
TERMS
OF
INITIAL
AP-
POINTEES.—As designated by the Presi-
dent at the time of appointment, of the
members first appointed—
(I) three of the members ap-
pointed under subparagraph (A) shall
be appointed for a term of 2 years;
and
(II) three of the members ap-
pointed under subparagraph (A) shall
be appointed 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.
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(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.—Four 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.—
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(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
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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-
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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)—
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(A) the form and manner in which tickets
to work and self-sufficiency may be distributed
to beneficiaries pursuant to section 1147(b)(1)
of such Act;
(B) the format and wording of such 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-
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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
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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 work plans pursuant to section 1147(g)
of such Act;
(H) standards which must be met by pay-
ment systems required under section 1147(h) of
such Act, including (but not limited to)—
(i) the form and manner in which
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
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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(k)(1) of the Social
Security Act as amended by this Act) with respect to in-
quiries 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(k)(2) of the Social Security Act, as amended
by this Act) under which each $1 of benefits payable
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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-
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et to Work and Self-Sufficiency Program;
and
(iii) the savings that accrue to the
Trust Funds and other Federal programs
under the project being tested.
The Commissioner shall take into account 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.
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The Commissioner may include within the mat-
ters evaluated under the project the merits of
trial work periods and periods of extended eligi-
bility.
(3) WAIVERS.—The Commissioner may waive
compliance with the benefit provisions of title II of
the Social Security Act, and the Secretary of Health
and Human Services may waive compliance with the
benefit requirements of title XVIII of such Act, in
so far as is necessary for a thorough evaluation of
the alternative methods under consideration. No
such project shall be actually placed in operation un-
less at least 90 days prior thereto a written report,
prepared for purposes of notification and informa-
tion only and containing a full and complete descrip-
tion thereof, has been transmitted by the Commis-
sioner to the Committee on Ways and Means of the
House of Representatives and to the Committee on
Finance of the Senate. Periodic reports on the
progress of such projects shall be submitted by the
Commissioner to such committees. When appro-
priate, such reports shall include detailed rec-
ommendations for changes in administration or law,
or both, to carry out the objectives stated in para-
graph (1).
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(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 demonstration
projects carried out under this subsection together
with any related data and materials which the Com-
missioner may consider appropriate.
(5) FINAL REPORT.—The Commissioner shall
submit to the Congress a final report with respect
to all demonstration projects carried out under this
section no later than one year after their completion.
(6) EXPENDITURES.—Expenditures made for
demonstration projects under this subsection shall
be made from the Federal Disability Insurance
Trust Fund and the Federal Old-Age and Survivors
Insurance Trust Fund, as determined appropriate by
the Commissioner, and from the Federal Hospital
Insurance Trust Fund and the Federal Supple-
mentary Medical Insurance Trust Fund, as deter-
mined appropriate by the Secretary of Health and
Human Services, to the extent provided in advance
in appropriation Acts.
(i) STUDY BY GENERAL ACCOUNTING OFFICE OF
EXISTING DISABILITY-RELATED EMPLOYMENT INCEN-
TIVES.—
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(1) STUDY.—As soon as practicable after the
date of the enactment of this Act, the Comptroller
General of the United States shall undertake a study
to assess existing tax credits and other disability-re-
lated employment incentives under the Americans
with Disabilities Act of 1990 and other Federal
laws. In such study, the Comptroller General shall
specifically address the extent to which such credits
and other incentives would encourage employers to
hire and retain individuals with disabilities under the
Ticket to Work and Self-Sufficiency Program.
(2) REPORT.—Not later than 3 years after the
date of the enactment of this Act, the Comptroller
General shall transmit to the Committee on Ways
and Means of the House of Representatives and the
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 may determine to be appropriate.
(j) 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.—
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(1) STUDY.—As soon as practicable after the
date of the enactment of this Act, the Comptroller
General of the United States shall undertake a study
to evaluate the coordination under current law of the
disability insurance program under title II of the So-
cial Security Act and the supplemental security in-
come program under title XVI of such Act, as such
programs relate to individuals entering or leaving
concurrent entitlement under such programs. In
such study, the Comptroller General shall specifically
address the effectiveness of work incentives under
such programs with respect to such individuals and
the effectiveness of coverage of such individuals
under titles XVIII and XIX of such Act.
(2) REPORT.—Not later than 18 months after
the date of the enactment of this Act, the Comptrol-
ler General shall transmit to the Committee on
Ways and Means of the House of Representatives
and the Committee on Finance of the Senate a writ-
ten report presenting the results of the Comptroller
General’s study conducted pursuant to this sub-
section, together with such recommendations for leg-
islative or administrative changes as the Comptroller
General may determine to be appropriate.
HR 3433 PCS
SEC. 3. EXTENDING MEDICARE COVERAGE FOR OASDI DIS-
ABILITY 
BENEFIT 
RECIPIENTS 
WHO 
ARE
USING TICKETS TO WORK AND SELF-SUFFI-
CIENCY.
(a) IN GENERAL.—The next to last sentence of sec-
tion 226(b) of the Social Security Act (42 U.S.C. 426)
is amended—
(1) by striking ‘‘throughout all of which’’ and
inserting ‘‘throughout the first 24 months of which’’;
and
(2) by inserting after ‘‘but not in excess of 24
such months’’ the following: ‘‘(plus 24 additional
such months in the case of an individual who the
Commissioner determines is using a ticket to work
and self-sufficiency issued under section 1147, but
only for additional months that occur in the 7-year
period beginning on the date of the enactment of the
Ticket to Work and Self-Sufficiency Act of 1998)’’.
(b) REPORT.—Not later than 6 months prior to the
end of the 7-year period beginning on the date of the en-
actment of this Act, the Secretary of Health and Human
Services and the Commissioner of Social Security shall
submit in writing to each House of the Congress their rec-
ommendations for further legislative action with respect
to the amendments made by subsection (a), taking into
account experience derived from efforts to achieve full im-
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plementation of the Ticket to Work and Self Sufficiency
Program under section 1147 of the Social Security Act.
SEC. 4. TECHNICAL AMENDMENTS RELATING TO DRUG AD-
DICTS AND ALCOHOLICS.
(a) CLARIFICATION RELATING TO THE EFFECTIVE
DATE OF THE DENIAL OF SOCIAL SECURITY DISABILITY
BENEFITS TO DRUG ADDICTS AND ALCOHOLICS.—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 new sub-
paragraphs:
‘‘(D) For purposes of this paragraph, an
individual’s claim, with respect to benefits
under title II of the Social Security Act based
on disability, which has been denied in whole
before the date of the enactment of this Act,
may not be considered to be finally adjudicated
before such date if, on or after such date—
‘‘(i) there is pending a request for ei-
ther administrative or judicial review with
respect to such claim; or
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‘‘(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 preced-
ing provisions of this paragraph, and the provi-
sions of section 223(f) of the Social Security
Act shall not apply to such redetermination.’’.
(b) CORRECTION TO EFFECTIVE DATE OF PROVI-
SIONS
CONCERNING
REPRESENTATIVE
PAYEES
AND
TREATMENT REFERRALS OF SOCIAL SECURITY BENE-
FICIARIES WHO ARE DRUG ADDICTS AND ALCOHOLICS.—
Section 105(a)(5)(B) of such Act (Public Law 104–121;
110 Stat. 853) is amended to read as follows:
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‘‘(B) The amendments made by para-
graphs (2) and (3) shall take effect on July 1,
1996, with respect to any individual—
‘‘(i) whose claim for benefits is finally
adjudicated on or after the date of the en-
actment of this Act; or
‘‘(ii) whose entitlement to benefits is
based upon an entitlement redetermination
made pursuant to subparagraph (C).’’.
(c) EFFECTIVE DATES.—The amendments made by
this section shall take effect as if included in the enact-
ment of section 105 of the Contract with America Ad-
vancement Act of 1996 (Public Law 104–121; 110 Stat.
852 et seq.).
SEC. 5. EXTENSION OF DISABILITY INSURANCE PROGRAM
DEMONSTRATION PROJECT AUTHORITY.
(a) IN GENERAL.—Section 505 of the Social Security
Disability Amendments of 1980 (Public Law 96–265; 94
Stat. 473), as amended by section 12101 of the Consoli-
dated Omnibus Budget Reconciliation Act of 1985 (Public
Law 99–272; 100 Stat. 282), section 10103 of the Omni-
bus Budget Reconciliation Act of 1989 (Public Law 101–
239; 103 Stat. 2472), section 5120(f) of the Omnibus
Budget Reconciliation Act of 1990 (Public Law 101–508;
104 Stat. 1388–282), and section 315 of the Social Secu-
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rity Independence and Program Improvements Act of
1994 (Public Law 103–296; 108 Stat. 1531), is further
amended—
(1) in paragraph (1) of subsection (a), by add-
ing at the end the following new sentence: ‘‘The
Commissioner may expand the scope of any such
demonstration project to include any group of appli-
cants for benefits under such program with impair-
ments which may reasonably be presumed to be dis-
abling 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.’’;
(2) in paragraph (3) of subsection (a), by strik-
ing ‘‘June 10, 1996’’ and inserting ‘‘June 10,
2001’’;
(3) in paragraph (4) of subsection (a), by in-
serting ‘‘and on or before October 1, 2000,’’ after
‘‘1995,’’; and
(4) in subsection (c), by striking ‘‘October 1,
1996’’ and inserting ‘‘October 1, 2001’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect on the date of the enact-
ment of this Act.
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SEC. 6. PERFECTING AMENDMENTS RELATED TO WITH-
HOLDING FROM SOCIAL SECURITY BENEFITS.
(a) INAPPLICABILITY
OF
ASSIGNMENT
PROHIBI-
TION.—Section 207 of the Social Security Act (42 U.S.C.
407) is amended by adding at the end the following new
subsection:
‘‘(c) Nothing in this section shall be construed to pro-
hibit withholding taxes from any benefit under this title,
if such withholding is done pursuant to a request made
in accordance with section 3402(p)(1) of the Internal Rev-
enue Code of 1986 by the person entitled to such benefit
or such person’s representative payee.’’.
(b) PROPER ALLOCATION OF COSTS OF WITHHOLD-
ING BETWEEN THE TRUST FUNDS AND THE GENERAL
FUND.—Section 201(g) of such Act (42 U.S.C. 401(g))
is amended—
(1) by inserting before the period in paragraph
(1)(A)(ii) the following: ‘‘and the functions of the
Social Security Administration in connection with
the withholding of taxes from benefits, as described
in section 207(c), pursuant to requests by persons
entitled to such benefits or such persons’ representa-
tive payee’’;
(2) by inserting before the period at the end of
paragraph (1)(A) the following: ‘‘and the functions
of the Social Security Administration in connection
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with the withholding of taxes from benefits, as de-
scribed in section 207(c), pursuant to requests by
persons entitled to such benefits or such persons’
representative payee’’;
(3) in paragraph (1)(B)(i)(I), by striking ‘‘sub-
paragraph (A)),’’ and inserting ‘‘subparagraph (A))
and the functions of the Social Security Administra-
tion in connection with the withholding of taxes from
benefits, as described in section 207(c), pursuant to
requests by persons entitled to such benefits or such
persons’ representative payee,’’;
(4) in paragraph (1)(C)(iii), by inserting before
the period the following: ‘‘and the functions of the
Social Security Administration in connection with
the withholding of taxes from benefits, as described
in section 207(c), pursuant to requests by persons
entitled to such benefits or such persons’ representa-
tive payee’’;
(5) in paragraph (1)(D), by inserting after
‘‘section 232’’ the following: ‘‘and the functions of
the Social Security Administration in connection
with the withholding of taxes from benefits as de-
scribed in section 207(c)’’; and
(6) in paragraph (4), by inserting after the first
sentence the following: ‘‘The Board of Trustees of
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such Trust Funds shall prescribe the method of de-
termining the costs which should be borne by the
general fund in the Treasury of carrying out the
functions of the Social Security Administration in
connection with the withholding of taxes from bene-
fits, as described in section 207(c), pursuant to re-
quests by persons entitled to such benefits or such
persons’ representative payee.’’.
(c) EFFECTIVE DATE.—The amendments made by
subsection (b) shall apply to benefits paid on or after the
first day of the second month beginning after the month
in which this Act is enacted.
SEC. 7. TREATMENT OF PRISONERS.
(a) IMPLEMENTATION
OF PROHIBITION AGAINST
PAYMENT 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 amend-
ed—
(A) by inserting ‘‘(A)’’ after ‘‘(3)’’; and
(B) by adding at the end the following new
subparagraph:
‘‘(B)(i) The Commissioner shall enter into an agree-
ment under this subparagraph with any interested State
or local institution comprising a jail, prison, penal institu-
tion, or correctional facility, or comprising any other insti-
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tution a purpose of which is to confine individuals as de-
scribed in paragraph (1)(A)(ii). Under such agreement—
‘‘(I) the institution shall provide to the Com-
missioner, on a monthly basis and in a manner spec-
ified by the Commissioner, the names, Social Secu-
rity account numbers, dates of birth, confinement
commencement dates, and, to the extent available to
the institution, such other identifying information
concerning the individuals confined in the institution
as the Commissioner may require for the purpose of
carrying out paragraph (1); and
‘‘(II) the Commissioner shall pay to the institu-
tion, with respect to information described in sub-
clause (I) concerning each individual who is confined
therein as described in paragraph (1)(A), who re-
ceives a benefit under this title for the month pre-
ceding the first month of such confinement, and
whose benefit under this title is determined by the
Commissioner to be not payable by reason of con-
finement based on the information provided by the
institution, $400 (subject to reduction under clause
(ii)) if the institution furnishes 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
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the institution furnishes the information after 30
days after such date but within 90 days after such
date.
‘‘(ii) The dollar amounts specified in clause (i)(II)
shall be reduced by 50 percent if the Commissioner is also
required to make a payment to the institution with respect
to the same individual under an agreement entered into
under section 1611(e)(1)(I).
‘‘(iii) The provisions of section 552a of title 5, United
States Code, shall not apply to any agreement entered into
under clause (i) or to information exchanged pursuant to
such agreement.
‘‘(iv) There is authorized to be transferred from the
Federal Old-Age and Survivors Insurance Trust Fund and
the Federal Disability Insurance Trust Fund, as appro-
priate, such sums as may be necessary to enable the Com-
missioner to make payments to institutions required by
clause (i)(II).
‘‘(v) The Commissioner is authorized to provide, on
a reimbursable basis, information obtained pursuant to
agreements entered into under clause (i) to any agency
administering a Federal or federally-assisted cash, food,
or medical assistance program for eligibility purposes.’’.
(2) EFFECTIVE DATE.—The amendments made
by this subsection shall apply to individuals whose
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period of confinement in an institution commences
on or after the first day of the fourth month begin-
ning after the month in which this Act is enacted.
(b) ELIMINATION OF TITLE II REQUIREMENT THAT
CONFINEMENT STEM FROM CRIME PUNISHABLE BY IM-
PRISONMENT FOR MORE THAN 1 YEAR.—
(1) IN GENERAL.—Section 202(x)(1)(A) of such
Act (42 U.S.C. 402(x)(1)(A)) is amended—
(A) in the matter preceding clause (i), by
striking ‘‘during’’ and inserting ‘‘throughout’’;
(B) in clause (i), by striking ‘‘an offense
punishable by imprisonment for more than 1
year (regardless of the actual sentence im-
posed)’’ and inserting ‘‘a criminal offense’’; and
(C) in clause (ii)(I), by striking ‘‘an of-
fense punishable by imprisonment for more
than 1 year’’ and inserting ‘‘a criminal of-
fense’’.
(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 begin-
ning after the month in which this Act is enacted.
(c) CONFORMING TITLE XVI AMENDMENTS.—
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(1) FIFTY PERCENT REDUCTION IN TITLE XVI
PAYMENT IN CASE INVOLVING COMPARABLE TITLE II
PAYMENT.—Section 1611(e)(1)(I) of the Social Se-
curity Act (42 U.S.C. 1382(e)(1)(I)) is amended—
(A) in clause (i)(II), by inserting ‘‘(subject
to reduction under clause (ii))’’ after ‘‘$400’’
and after ‘‘$200’’;
(B) by redesignating clauses (ii) and (iii)
as clauses (iii) and (iv) respectively; and
(C) by inserting after clause (i) the follow-
ing new clause:
‘‘(ii) The dollar amounts specified in clause (i)(II)
shall be reduced by 50 percent if the Commissioner is also
required to make a payment to the institution with respect
to the same individual under an agreement entered into
under section 202(x)(3)(B).’’.
(2) EXPANSION OF CATEGORIES OF INSTITU-
TIONS ELIGIBLE TO ENTER INTO AGREEMENTS WITH
THE
COMMISSIONER.—Section 1611(e)(1)(I)(i) of
such Act (42 U.S.C. 1382(e)(1)(I)(i)) is amended in
the matter preceding subclause (I) by striking ‘‘in-
stitution’’ 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-
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tution a purpose of which is to confine individuals
as described in section 202(x)(1)(A)(ii),’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall take effect as if included in
the enactment of section 203(a) of the Personal Re-
sponsibility and Work Opportunity Reconciliation
Act of 1996 (Public Law 104–193; 110 Stat. 2186).
The reference to section 202(x)(1)(A)(ii) of the So-
cial Security Act in section 1611(e)(1)(I)(i) of such
Act as amended by paragraph (2) shall be deemed
a reference to such section 202(x)(1)(A)(ii) as
amended by subsection (b)(1)(C).
(d) CONTINUED DENIAL OF BENEFITS TO SEX OF-
FENDERS REMAINING CONFINED TO PUBLIC INSTITU-
TIONS UPON COMPLETION OF PRISON TERM.—
(1) IN GENERAL.—Section 202(x)(1)(A) of the
Social Security Act (42 U.S.C. 402(x)(1)(A)) is
amended—
(A) in clause (i), by striking ‘‘or’’ at the
end;
(B) in clause (ii)(IV), by striking the pe-
riod and inserting ‘‘, or’’; and
(C) by adding at the end the following new
clause:
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‘‘(iii) immediately upon completion of confine-
ment as described in clause (i) pursuant to convic-
tion of a criminal offense an element of which is sex-
ual activity, is confined by court order in an institu-
tion at public expense pursuant to a finding that the
individual is a sexually dangerous person or a sexual
predator or a similar finding.’’.
(2) 
CONFORMING
AMENDMENT.—Section
202(x)(1)(B)(ii) 
of 
such 
Act 
(42 
U.S.C.
402(x)(1)(B)(ii)) is amended by striking ‘‘clause
(ii)’’ and inserting ‘‘clauses (ii) and (iii)’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall apply with respect to bene-
fits for months ending after the date of the enact-
ment of this Act.
SEC 8. REVOCATION BY MEMBERS OF THE CLERGY OF EX-
EMPTION 
FROM 
SOCIAL 
SECURITY 
COV-
ERAGE.
(a) 
IN
GENERAL.—Notwithstanding 
section
1402(e)(4) of the Internal Revenue Code of 1986, any ex-
emption which has been received under section 1402(e)(1)
of such Code by a duly ordained, commissioned, or li-
censed minister of a church, a member of a religious order,
or a Christian Science practitioner, and which is effective
for the taxable year in which this Act is enacted, may be
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revoked by filing an application therefor (in such form and
manner, and with such official, as may be prescribed in
regulations made under chapter 2 of such Code), if such
application is filed no later than the due date of the Fed-
eral income tax return (including any extension thereof)
for the applicant’s second taxable year beginning after De-
cember 31, 1998. Any such revocation shall be effective
(for purposes of chapter 2 of the Internal Revenue Code
of 1986 and title II of the Social Security Act), as speci-
fied in the application, either with respect to the appli-
cant’s first taxable year beginning after December 31,
1998, or with respect to the applicant’s second taxable
year beginning after such date, and for all succeeding tax-
able years; and the applicant for any such revocation may
not thereafter again file application for an exemption
under such section 1402(e)(1). If the application is filed
after the due date of the applicant’s Federal income tax
return for a taxable year and is effective with respect to
that taxable year, it shall include or be accompanied by
payment in full of an amount equal to the total of the
taxes that would have been imposed by section 1401 of
the Internal Revenue Code of 1986 with respect to all of
the applicant’s income derived in that taxable year which
would have constituted net earnings from self-employment
for purposes of chapter 2 of such Code (notwithstanding
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section 1402 (c)(4) or (c)(5) of such Code) except for the
exemption under section 1402(e)(1) of such Code.
(b) EFFECTIVE DATE.—Subsection (a) shall apply
with respect to service performed (to the extent specified
in such subsection) in taxable years beginning after De-
cember 31, 1998, and with respect to monthly insurance
benefits payable under title II of the Social Security Act
on the basis of the wages and self-employment income of
any individual for months in or after the calendar year
in which such individual’s application for revocation (as
described in such subsection) is effective (and lump-sum
death payments payable under such title on the basis of
such wages and self-employment income in the case of
deaths occurring in or after such calendar year).
SEC. 9. ADDITIONAL TECHNICAL AMENDMENT RELATING
TO 
COOPERATIVE 
RESEARCH 
OR 
DEM-
ONSTRATION PROJECTS UNDER TITLES II
AND XVI.
(a) IN GENERAL.—Section 1110(a)(3) of the Social
Security Act (42 U.S.C. 1310(a)(3)) is amended by strik-
ing ‘‘title XVI’’ and inserting ‘‘title II or XVI’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect as if included in the enact-
ment of the Social Security Independence and Program
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Improvements Act of 1994 (Public Law 103–296; 108
Stat. 1464).
Passed the House of Representatives June 4, 1998.
Attest:
ROBIN H. CARLE,
Clerk.