H. R. 1180
One Hundred Sixth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Wednesday,
the sixth day of January, one thousand nine hundred and ninety-nine
An Act
To amend the Social Security Act to expand the availability of health care coverage
for working individuals with disabilities, to establish a Ticket to Work and Self-
Sufficiency Program in the Social Security Administration to provide such individ-
uals with meaningful opportunities to work, and for other purposes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the ‘‘Ticket to
Work and Work Incentives Improvement Act of 1999’’.
(b) TABLE OF CONTENTS.—The table of contents is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
TITLE I—TICKET TO WORK AND SELF-SUFFICIENCY AND RELATED
PROVISIONS
Subtitle A—Ticket to Work and Self-Sufficiency
Sec. 101. Establishment of the Ticket to Work and Self-Sufficiency Program.
Subtitle B—Elimination of Work Disincentives
Sec. 111. Work activity standard as a basis for review of an individual’s disabled
status.
Sec. 112. Expedited reinstatement of disability benefits.
Subtitle C—Work Incentives Planning, Assistance, and Outreach
Sec. 121. Work incentives outreach program.
Sec. 122. State grants for work incentives assistance to disabled beneficiaries.
TITLE II—EXPANDED AVAILABILITY OF HEALTH CARE SERVICES
Sec. 201. Expanding State options under the medicaid program for workers with
disabilities.
Sec. 202. Extending medicare coverage for OASDI disability benefit recipients.
Sec. 203. Grants to develop and establish State infrastructures to support working
individuals with disabilities.
Sec. 204. Demonstration of coverage under the medicaid program of workers with
potentially severe disabilities.
Sec. 205. Election by disabled beneficiaries to suspend medigap insurance when
covered under a group health plan.
TITLE III—DEMONSTRATION PROJECTS AND STUDIES
Sec. 301. Extension of disability insurance program demonstration project author-
ity.
Sec. 302. Demonstration projects providing for reductions in disability insurance
benefits based on earnings.
Sec. 303. Studies and reports.
TITLE IV—MISCELLANEOUS AND TECHNICAL AMENDMENTS
Sec. 401. Technical amendments relating to drug addicts and alcoholics.
Sec. 402. Treatment of prisoners.
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Sec. 403. Revocation by members of the clergy of exemption from social security
coverage.
Sec. 404. Additional technical amendment relating to cooperative research or dem-
onstration projects under titles II and XVI.
Sec. 405. Authorization for State to permit annual wage reports.
Sec. 406. Assessment on attorneys who receive their fees via the Social Security
Administration.
Sec. 407. Extension of authority of State medicaid fraud control units.
Sec. 408. Climate database modernization.
Sec. 409. Special allowance adjustment for student loans.
Sec. 410. Schedule for payments under SSI state supplementation agreements.
Sec. 411. Bonus commodities.
Sec. 412. Simplification of definition of foster child under EIC.
Sec. 413. Delay of effective date of organ procurement and transplantation network
final rule.
TITLE V—TAX RELIEF EXTENSION ACT OF 1999
Sec. 500. Short title of title.
Subtitle A—Extensions
Sec. 501. Allowance of nonrefundable personal credits against regular and min-
imum tax liability.
Sec. 502. Research credit.
Sec. 503. Subpart F exemption for active financing income.
Sec. 504. Taxable income limit on percentage depletion for marginal production.
Sec. 505. Work opportunity credit and welfare-to-work credit.
Sec. 506. Employer-provided educational assistance.
Sec. 507. Extension and modification of credit for producing electricity from certain
renewable resources.
Sec. 508. Extension of duty-free treatment under Generalized System of Pref-
erences.
Sec. 509. Extension of credit for holders of qualified zone academy bonds.
Sec. 510. Extension of first-time homebuyer credit for District of Columbia.
Sec. 511. Extension of expensing of environmental remediation costs.
Sec. 512. Temporary increase in amount of rum excise tax covered over to Puerto
Rico and Virgin Islands.
Subtitle B—Other Time-Sensitive Provisions
Sec. 521. Advance pricing agreements treated as confidential taxpayer information.
Sec. 522. Authority to postpone certain tax-related deadlines by reason of Y2K
failures.
Sec. 523. Inclusion of certain vaccines against streptococcus pneumoniae to list of
taxable vaccines.
Sec. 524. Delay in effective date of requirement for approved diesel or kerosene
terminals.
Sec. 525. Production flexibility contract payments.
Subtitle C—Revenue Offsets
PART I—GENERAL PROVISIONS
Sec. 531. Modification of estimated tax safe harbor.
Sec. 532. Clarification of tax treatment of income and loss on derivatives.
Sec. 533. Expansion of reporting of cancellation of indebtedness income.
Sec. 534. Limitation on conversion of character of income from constructive owner-
ship transactions.
Sec. 535. Treatment of excess pension assets used for retiree health benefits.
Sec. 536. Modification of installment method and repeal of installment method for
accrual method taxpayers.
Sec. 537. Denial of charitable contribution deduction for transfers associated with
split-dollar insurance arrangements.
Sec. 538. Distributions by a partnership to a corporate partner of stock in another
corporation.
PART II—PROVISIONS RELATING TO REAL ESTATE INVESTMENT TRUSTS
SUBPART A—TREATMENT OF INCOME AND SERVICES PROVIDED BY TAXABLE REIT
SUBSIDIARIES
Sec. 541. Modifications to asset diversification test.
Sec. 542. Treatment of income and services provided by taxable REIT subsidiaries.
Sec. 543. Taxable REIT subsidiary.
Sec. 544. Limitation on earnings stripping.
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Sec. 545. 100 percent tax on improperly allocated amounts.
Sec. 546. Effective date.
Sec. 547. Study relating to taxable REIT subsidiaries.
SUBPART B—HEALTH CARE REITS
Sec. 551. Health care REITs.
SUBPART C—CONFORMITY WITH REGULATED INVESTMENT COMPANY RULES
Sec. 556. Conformity with regulated investment company rules.
SUBPART D—CLARIFICATION OF EXCEPTION FROM IMPERMISSIBLE TENANT SERVICE
INCOME
Sec. 561. Clarification of exception for independent operators.
SUBPART E—MODIFICATION OF EARNINGS AND PROFITS RULES
Sec. 566. Modification of earnings and profits rules.
SUBPART F—MODIFICATION OF ESTIMATED TAX RULES
Sec. 571. Modification of estimated tax rules for closely held real estate investment
trusts.
SEC. 2. FINDINGS AND PURPOSES.
(a) FINDINGS.—The Congress makes the following findings:
(1) It is the policy of the United States to provide assistance
to individuals with disabilities to lead productive work lives.
(2) Health care is important to all Americans.
(3) Health care is particularly important to individuals
with disabilities and special health care needs who often cannot
afford the insurance available to them through the private
market, are uninsurable by the plans available in the private
sector, and are at great risk of incurring very high and economi-
cally devastating health care costs.
(4) Americans with significant disabilities often are unable
to obtain health care insurance that provides coverage of the
services and supports that enable them to live independently
and enter or rejoin the workforce. Personal assistance services
(such as attendant services, personal assistance with transpor-
tation to and from work, reader services, job coaches, and
related assistance) remove many of the barriers between signifi-
cant disability and work. Coverage for such services, as well
as for prescription drugs, durable medical equipment, and basic
health care are powerful and proven tools for individuals with
significant disabilities to obtain and retain employment.
(5) For individuals with disabilities, the fear of losing
health care and related services is one of the greatest barriers
keeping the individuals from maximizing their employment,
earning potential, and independence.
(6) Social Security Disability Insurance and Supplemental
Security Income beneficiaries risk losing medicare or medicaid
coverage that is linked to their cash benefits, a risk that is
an equal, or greater, work disincentive than the loss of cash
benefits associated with working.
(7) Individuals with disabilities have greater opportunities
for employment than ever before, aided by important public
policy initiatives such as the Americans with Disabilities Act
of 1990 (42 U.S.C. 12101 et seq.), advancements in public
understanding of disability, and innovations in assistive tech-
nology, medical treatment, and rehabilitation.
(8) Despite such historic opportunities and the desire of
millions of disability recipients to work and support themselves,
fewer than one-half of one percent of Social Security Disability
H. R. 1180—4
Insurance and Supplemental Security Income beneficiaries
leave the disability rolls and return to work.
(9) In addition to the fear of loss of health care coverage,
beneficiaries cite financial disincentives to work and earn
income and lack of adequate employment training and place-
ment services as barriers to employment.
(10) Eliminating such barriers to work by creating financial
incentives to work and by providing individuals with disabilities
real choice in obtaining the services and technology they need
to find, enter, and maintain employment can greatly improve
their short and long-term financial independence and personal
well-being.
(11) In addition to the enormous advantages such changes
promise for individuals with disabilities, redesigning govern-
ment programs to help individuals with disabilities return to
work may result in significant savings and extend the life
of the Social Security Disability Insurance Trust Fund.
(12) If only an additional one-half of one percent of the
current Social Security Disability Insurance and Supplemental
Security Income recipients were to cease receiving benefits
as a result of employment, the savings to the Social Security
Trust Funds and to the Treasury in cash assistance would
total $3,500,000,000 over the worklife of such individuals, far
exceeding the cost of providing incentives and services needed
to assist them in entering work and achieving financial
independence to the best of their abilities.
(b) PURPOSES.—The purposes of this Act are as follows:
(1) To provide health care and employment preparation
and placement services to individuals with disabilities that
will enable those individuals to reduce their dependency on
cash benefit programs.
(2) To encourage States to adopt the option of allowing
individuals with disabilities to purchase medicaid coverage that
is necessary to enable such individuals to maintain employ-
ment.
(3) To provide individuals with disabilities the option of
maintaining medicare coverage while working.
(4) To establish a return to work ticket program that will
allow individuals with disabilities to seek the services necessary
to obtain and retain employment and reduce their dependency
on cash benefit programs.
TITLE I—TICKET TO WORK AND SELF-
SUFFICIENCY AND RELATED PROVI-
SIONS
Subtitle A—Ticket to Work and Self-
Sufficiency
SEC. 101. ESTABLISHMENT OF THE TICKET TO WORK AND SELF-SUFFI-
CIENCY PROGRAM.
(a) IN GENERAL.—Part A of title XI of the Social Security
Act (42 U.S.C. 1301 et seq.) is amended by adding at the end
the following new section:
H. R. 1180—5
‘‘THE TICKET TO WORK AND SELF-SUFFICIENCY PROGRAM
‘‘SEC. 1148. (a) IN GENERAL.—The Commissioner shall establish
a Ticket to Work and Self-Sufficiency Program, under which a
disabled beneficiary may use a ticket to work and self-sufficiency
issued by the Commissioner in accordance with this section to
obtain employment services, vocational rehabilitation services, or
other support services from an employment network which is of
the beneficiary’s choice and which is willing to provide such services
to such beneficiary.
‘‘(b) TICKET SYSTEM.—
‘‘(1) DISTRIBUTION
OF
TICKETS.—The Commissioner may
issue a ticket to work and self-sufficiency to disabled bene-
ficiaries for participation in the Program.
‘‘(2) ASSIGNMENT
OF
TICKETS.—A disabled beneficiary
holding a ticket to work and self-sufficiency may assign the
ticket to any employment network of the beneficiary’s choice
which is serving under the Program and is willing to accept
the assignment.
‘‘(3) TICKET TERMS.—A ticket issued under paragraph (1)
shall consist of a document which evidences 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 services, and other support
services as the employment network may provide to the bene-
ficiary.
‘‘(4) PAYMENTS TO EMPLOYMENT NETWORKS.—The Commis-
sioner shall pay an employment network under the Program
in accordance with the outcome payment system under sub-
section (h)(2) or under the outcome-milestone payment system
under subsection (h)(3) (whichever is elected pursuant to sub-
section (h)(1)). An employment network may not request or
receive compensation for such services from the beneficiary.
‘‘(c) STATE PARTICIPATION.—
‘‘(1) IN
GENERAL.—Each State agency administering or
supervising the administration of the State plan approved
under title I of the Rehabilitation Act of 1973 (29 U.S.C. 720
et seq.) may elect to participate in the Program as an employ-
ment network with respect to a disabled beneficiary. If the
State agency does elect to participate in the Program, the
State agency also shall elect to be paid under the outcome
payment system or the outcome-milestone payment system in
accordance with subsection (h)(1). With respect to a disabled
beneficiary that the State agency does not elect to have partici-
pate in the Program, the State agency shall be paid for services
provided to that beneficiary under the system for payment
applicable under section 222(d) and subsections (d) and (e)
of section 1615. The Commissioner shall provide for periodic
opportunities for exercising such elections.
‘‘(2) EFFECT OF PARTICIPATION BY STATE AGENCY.—
‘‘(A) STATE AGENCIES PARTICIPATING.—In any case in
which a State agency described in paragraph (1) elects
under that paragraph to participate in the Program, the
employment services, vocational rehabilitation services, and
other support services which, upon assignment of tickets
H. R. 1180—6
to work and self-sufficiency, are provided to disabled bene-
ficiaries by the State agency acting as an employment
network shall be governed by plans for vocational
rehabilitation services approved under title I of the
Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.).
‘‘(B) STATE AGENCIES ADMINISTERING MATERNAL AND
CHILD
HEALTH
SERVICES
PROGRAMS.—Subparagraph (A)
shall not apply with respect to any State agency admin-
istering a program under title V of this Act.
‘‘(3) AGREEMENTS BETWEEN STATE AGENCIES AND EMPLOY-
MENT NETWORKS.—State agencies and employment networks
shall enter into agreements regarding the conditions under
which services will be provided when an individual is referred
by an employment network to a State agency for services.
The Commissioner shall establish by regulations the timeframe
within which such agreements must be entered into and the
mechanisms for dispute resolution between State agencies and
employment networks with respect to such agreements.
‘‘(d) RESPONSIBILITIES OF THE COMMISSIONER.—
‘‘(1) SELECTION
AND
QUALIFICATIONS
OF
PROGRAM
MAN-
AGERS.—The Commissioner shall enter into agreements with
1 or more organizations in the private or public sector for
service as a program manager to assist the Commissioner in
administering the Program. Any such program manager shall
be selected by means of a competitive bidding process, from
among organizations in the private or public sector with avail-
able expertise and experience in the field of vocational
rehabilitation or employment services.
‘‘(2) TENURE, RENEWAL, AND
EARLY
TERMINATION.—Each
agreement entered into under paragraph (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 include—
‘‘(A) measures for ease of access by beneficiaries to
services; and
‘‘(B) measures for determining the extent to which
failures in obtaining services for beneficiaries fall within
acceptable parameters, as determined by the Commis-
sioner.
‘‘(3) PRECLUSION FROM DIRECT PARTICIPATION IN DELIVERY
OF SERVICES IN OWN SERVICE AREA.—Agreements under para-
graph (1) shall preclude—
‘‘(A) direct participation by a program manager in the
delivery of employment services, vocational rehabilitation
services, or other support 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 NETWORKS.—
‘‘(A) IN GENERAL.—The Commissioner shall select and
enter into agreements with employment networks for
service under the Program. Such employment networks
H. R. 1180—7
shall be in addition to State agencies serving as employ-
ment networks pursuant to elections under subsection (c).
‘‘(B) ALTERNATE
PARTICIPANTS.—In any State where
the Program is being implemented, the Commissioner shall
enter into an agreement with any alternate participant
that is operating under the authority of section 222(d)(2)
in the State as of the date of the enactment of this section
and chooses to serve as an employment network under
the Program.
‘‘(5) TERMINATION OF AGREEMENTS WITH EMPLOYMENT NET-
WORKS.—The Commissioner shall terminate agreements with
employment networks for inadequate performance, as deter-
mined by the Commissioner.
‘‘(6) QUALITY ASSURANCE.—The Commissioner shall provide
for such periodic reviews as are necessary to provide for effec-
tive quality assurance in the provision of services by employ-
ment networks. The Commissioner shall solicit and consider
the views of consumers and the program manager under which
the employment networks serve and shall consult with pro-
viders 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
Commissioner shall ensure that the periodic surveys of bene-
ficiaries receiving services under the Program are designed
to measure customer service satisfaction.
‘‘(7) DISPUTE RESOLUTION.—The Commissioner shall pro-
vide for a mechanism for resolving disputes between bene-
ficiaries and employment networks, between program managers
and employment networks, and between program managers
and providers of services. 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 Commissioner in carrying out the
Commissioner’s duties in administering the Program.
‘‘(2) RECRUITMENT OF EMPLOYMENT NETWORKS.—A program
manager shall recruit, and recommend for selection by the
Commissioner, employment networks for service under the Pro-
gram. The program manager shall carry out such recruitment
and provide such recommendations, and shall monitor 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 services are made available to beneficiaries. Employ-
ment networks may serve under the Program only pursuant
to an agreement entered into with the Commissioner under
the Program incorporating the applicable provisions of this
section and regulations thereunder, and the program manager
shall provide and maintain assurances to the Commissioner
that payment by the Commissioner to employment networks
pursuant to this section is warranted based on compliance
by such employment networks with the terms of such agree-
ment and this section. The program manager shall not impose
numerical limits on the number of employment networks to
be recommended pursuant to this paragraph.
H. R. 1180—8
‘‘(3) FACILITATION OF ACCESS BY BENEFICIARIES TO EMPLOY-
MENT NETWORKS.—A program manager shall facilitate access
by beneficiaries to employment networks. The program man-
ager shall ensure that each beneficiary is allowed changes
in employment networks without being deemed to have rejected
services under the Program. When such a change occurs, the
program manager shall reassign the ticket based on the choice
of the beneficiary. Upon the request of the employment network,
the program manager shall make a determination of the alloca-
tion of the outcome or milestone-outcome payments based on
the services provided by each employment network. The pro-
gram 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
pursuant to this paragraph is provided in accessible formats.
‘‘(4) ENSURING AVAILABILITY OF ADEQUATE SERVICES.—The
program manager shall ensure that employment services, voca-
tional rehabilitation services, and other support services are
provided to beneficiaries throughout the geographic area cov-
ered under the program manager’s agreement, including rural
areas.
‘‘(5) REASONABLE ACCESS TO SERVICES.—The program man-
ager shall take such measures as are necessary to ensure
that sufficient employment networks are available and that
each beneficiary receiving services under the Program has
reasonable access to employment services, vocational rehabilita-
tion services, and other support services. Services provided
under the Program may include case management, work incen-
tives planning, supported employment, career planning, career
plan development, vocational assessment, job training, place-
ment, follow-up services, and such other services as may be
specified by the Commissioner under the Program. The program
manager shall ensure that such services are available in each
service area.
‘‘(f ) EMPLOYMENT NETWORKS.—
‘‘(1) QUALIFICATIONS FOR EMPLOYMENT NETWORKS.—
‘‘(A) IN GENERAL.—Each employment network serving
under the Program shall consist of an agency or instrumen-
tality of a State (or a political subdivision thereof ) or
a private entity, that assumes responsibility for the
coordination and delivery of services under the Program
to individuals assigning to the employment network tickets
to work and self-sufficiency issued under subsection (b).
‘‘(B) ONE-STOP
DELIVERY
SYSTEMS.—An employment
network serving under the Program may consist of a one-
stop delivery system established under subtitle B of title
I of the Workforce Investment Act of 1998 (29 U.S.C. 2811
et seq.).
‘‘(C) COMPLIANCE
WITH
SELECTION
CRITERIA.—No
employment network may serve under the Program unless
it meets and maintains compliance with both general selec-
tion criteria (such as professional and educational qualifica-
tions, where applicable) and specific selection criteria (such
as substantial expertise and experience in providing rel-
evant employment services and supports).
H. R. 1180—9
‘‘(D) SINGLE OR ASSOCIATED PROVIDERS ALLOWED.—An
employment network shall consist of either a single pro-
vider of such services or of an association of such providers
organized so as to combine their resources into a single
entity. An employment network may meet the requirements
of subsection (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 Commis-
sioner to—
‘‘(A) serve prescribed service areas; and
‘‘(B) take such measures as are necessary to ensure
that employment services, vocational rehabilitation serv-
ices, and other support services provided under the Pro-
gram by, or under agreements entered into with, the
employment network are provided under appropriate indi-
vidual work plans that meet the requirements of subsection
(g).
‘‘(3) ANNUAL FINANCIAL REPORTING.—Each employment net-
work shall meet financial reporting requirements as prescribed
by the Commissioner.
‘‘(4) PERIODIC
OUTCOMES
REPORTING.—Each employment
network shall prepare periodic reports, on at least an annual
basis, itemizing for the covered period specific outcomes
achieved with respect to specific services provided by the
employment network. Such reports shall conform to a national
model prescribed under this section. Each employment network
shall provide a copy of the latest report issued by the employ-
ment network pursuant to this paragraph to each beneficiary
upon enrollment under the Program for services to be received
through such employment network. Upon issuance of each
report to each beneficiary, a copy of the report shall be main-
tained in the files of the employment network. The program
manager shall ensure that copies of all such reports issued
under this paragraph are made available to the public under
reasonable terms.
‘‘(g) INDIVIDUAL WORK PLANS.—
‘‘(1) REQUIREMENTS.—Each employment network shall—
‘‘(A) take such measures as are necessary to ensure
that employment services, vocational rehabilitation serv-
ices, and other support services provided under the Pro-
gram by, or under agreements entered into with, the
employment network are provided under appropriate indi-
vidual work plans that meet the requirements of subpara-
graph (C);
‘‘(B) develop and implement each such individual work
plan, in partnership with each beneficiary receiving such
services, in a manner that affords such beneficiary the
opportunity to exercise informed choice in selecting an
employment goal and specific services needed to achieve
that employment goal;
‘‘(C) ensure that each individual work plan includes
at least—
H. R. 1180—10
‘‘(i) a statement of the vocational goal developed
with the beneficiary, including, as appropriate, goals
for earnings and job advancement;
‘‘(ii) a statement of the services and supports that
have been deemed necessary for the beneficiary to
accomplish that goal;
‘‘(iii) a statement of any terms and conditions
related to the provision of such services and supports;
and
‘‘(iv) a statement of understanding regarding the
beneficiary’s rights under the Program (such as the
right to retrieve the ticket to work and self-sufficiency
if the beneficiary is dissatisfied with the services being
provided by the employment network) and remedies
available to the individual, including information on
the availability of advocacy services and assistance
in resolving disputes through the State grant program
authorized under section 1150;
‘‘(D) provide a beneficiary the opportunity to amend
the individual work plan if a change in circumstances
necessitates a change in the plan; and
‘‘(E) make each beneficiary’s individual work plan
available to the beneficiary in, as appropriate, an accessible
format chosen by the beneficiary.
‘‘(2) EFFECTIVE UPON WRITTEN APPROVAL.—A beneficiary’s
individual work plan shall take effect upon written approval
by the beneficiary or a representative of the beneficiary and
a representative of the employment network that, in providing
such written approval, acknowledges assignment of the bene-
ficiary’s ticket to work and self-sufficiency.
‘‘(h) EMPLOYMENT NETWORK PAYMENT SYSTEMS.—
‘‘(1) ELECTION OF PAYMENT SYSTEM BY EMPLOYMENT NET-
WORKS.—
‘‘(A) IN GENERAL.—The Program shall provide for pay-
ment authorized by the Commissioner to employment net-
works under either an outcome payment system or an
outcome-milestone payment system. Each employment net-
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 employment network (except as provided in subpara-
graph (B)).
‘‘(B) NO CHANGE IN METHOD OF PAYMENT FOR BENE-
FICIARIES WITH TICKETS ALREADY ASSIGNED TO THE EMPLOY-
MENT NETWORKS.—Any election of a payment system by
an employment network that would result in a change
in the method of payment to the employment network
for services provided to a beneficiary who is receiving serv-
ices from the employment network at the time of the elec-
tion shall not be effective with respect to payment for
services provided to that beneficiary and the method of
payment previously selected shall continue to apply with
respect to such services.
‘‘(2) OUTCOME PAYMENT SYSTEM.—
H. R. 1180—11
‘‘(A) IN GENERAL.—The outcome payment system shall
consist of a payment structure governing employment net-
works electing such system under paragraph (1)(A) which
meets the requirements of this paragraph.
‘‘(B) PAYMENTS
MADE
DURING
OUTCOME
PAYMENT
PERIOD.—The outcome payment system 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 payment
period, for which benefits (described in paragraphs (3) and
(4) of subsection (k)) are not payable to such individual
because of work or earnings.
‘‘(C) COMPUTATION OF PAYMENTS TO EMPLOYMENT NET-
WORK.—The payment schedule of the outcome payment
system shall be designed so that—
‘‘(i) the payment for each month during the out-
come payment period for which benefits (described in
paragraphs (3) and (4) of subsection (k)) are not pay-
able is equal to a fixed percentage of the payment
calculation base for the calendar year in which such
month occurs; and
‘‘(ii) such fixed percentage is set at a percentage
which does not exceed 40 percent.
‘‘(3) OUTCOME-MILESTONE PAYMENT SYSTEM.—
‘‘(A) IN
GENERAL.—The outcome-milestone payment
system shall consist of a payment structure governing
employment networks electing such system under para-
graph (1)(A) which meets the requirements of this para-
graph.
‘‘(B) EARLY
PAYMENTS
UPON
ATTAINMENT
OF
MILE-
STONES IN ADVANCE OF OUTCOME PAYMENT PERIODS.—The
outcome-milestone payment system shall provide for 1 or
more milestones, with respect to beneficiaries receiving
services from an employment network under the Program,
that are directed toward the goal of permanent employ-
ment. Such milestones shall form a part of a payment
structure that 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 milestones.
‘‘(C) LIMITATION ON TOTAL PAYMENTS TO EMPLOYMENT
NETWORK.—The payment schedule of the outcome milestone
payment system shall be designed so that the total of
the payments to the employment network with respect
to each beneficiary is less than, on a net present value
basis (using an interest rate determined by the Commis-
sioner that appropriately reflects the cost of funds faced
by providers), 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.—In this subsection:
‘‘(A) PAYMENT CALCULATION BASE.—The term ‘payment
calculation base’ means, for any calendar year—
‘‘(i) in connection with a title II disability bene-
ficiary, the average disability insurance benefit payable
H. R. 1180—12
under section 223 for all beneficiaries for months
during the preceding calendar year; and
‘‘(ii) in connection with a title XVI disability bene-
ficiary (who is not concurrently a title II disability
beneficiary), the average payment of supplemental
security income benefits based on disability payable
under title XVI (excluding State supplementation) for
months during the preceding calendar year to all bene-
ficiaries who have attained 18 years of age but have
not attained 65 years of age.
‘‘(B) OUTCOME PAYMENT PERIOD.—The term ‘outcome
payment period’ means, in connection with any individual
who had assigned a ticket to work and self-sufficiency
to an employment 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 (3) and (4) of subsection (k)) are not pay-
able to such individual by reason of engagement in
substantial gainful activity or by reason of earnings
from work activity; and
‘‘(ii) ending with the 60th month (consecutive or
otherwise), ending after such date, for which such bene-
fits are not payable to such individual by reason of
engagement in substantial gainful activity or by reason
of earnings from work activity.
‘‘(5) PERIODIC
REVIEW
AND
ALTERATIONS
OF
PRESCRIBED
SCHEDULES.—
‘‘(A) PERCENTAGES AND PERIODS.—The Commissioner
shall periodically review the percentage specified in para-
graph (2)(C), the total payments permissible under para-
graph (3)(C), and the period of time specified in paragraph
(4)(B) to determine whether such percentages, such permis-
sible payments, and such period provide an adequate incen-
tive for employment networks to assist beneficiaries to
enter the workforce, while providing for appropriate econo-
mies. The Commissioner may alter such percentage, such
total permissible 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 described in the preceding sentence.
‘‘(B) NUMBER AND AMOUNTS OF MILESTONE PAYMENTS.—
The Commissioner shall periodically review the number
and amounts of milestone payments established by the
Commissioner pursuant to this section to determine
whether they provide an adequate incentive for employ-
ment networks to assist beneficiaries to enter the
workforce, taking into account information provided to the
Commissioner by program managers, the Ticket to Work
and Work Incentives Advisory Panel established by section
101(f ) of the Ticket to Work and Work Incentives Improve-
ment Act of 1999, and other reliable sources. The Commis-
sioner may from time to time alter the number and
amounts of milestone payments initially established by
the Commissioner pursuant to this section to the extent
that the Commissioner determines that such an alteration
H. R. 1180—13
would allow an adequate incentive for employment net-
works to assist beneficiaries to enter the workforce. Such
alteration shall be based on information provided to the
Commissioner by program managers, the Ticket to Work
and Work Incentives Advisory Panel established by section
101(f ) of the Ticket to Work and Work Incentives Improve-
ment Act of 1999, or other reliable sources.
‘‘(C) REPORT ON THE ADEQUACY OF INCENTIVES.—The
Commissioner shall submit to the Congress not later than
36 months after the date of the enactment of the Ticket
to Work and Work Incentives Improvement Act of 1999
a report with recommendations for a method or methods
to adjust payment rates under subparagraphs (A) and (B),
that would ensure adequate incentives for the provision
of services by employment networks of—
‘‘(i) individuals with a need for ongoing support
and services;
‘‘(ii) individuals with a need for high-cost accom-
modations;
‘‘(iii) individuals who earn a subminimum wage;
and
‘‘(iv) individuals who work and receive partial cash
benefits.
The Commissioner shall consult with the Ticket to Work
and Work Incentives Advisory Panel established under sec-
tion 101(f ) of the Ticket to Work and Work Incentives
Improvement Act of 1999 during the development and
evaluation of the study. The Commissioner shall implement
the necessary adjusted payment rates prior to full
implementation of the Ticket to Work and Self-Sufficiency
Program.
‘‘(i) SUSPENSION OF DISABILITY REVIEWS.—During any period
for which an individual is using, as defined by the Commissioner,
a ticket to work and self-sufficiency issued under this section,
the Commissioner (and any applicable State agency) may not ini-
tiate a continuing disability review or other review under section
221 of whether the individual is or is not under a disability or
a review under title XVI similar to any such review under section
221.
‘‘( j) AUTHORIZATIONS.—
‘‘(1) PAYMENTS TO EMPLOYMENT NETWORKS.—
‘‘(A) TITLE
II
DISABILITY
BENEFICIARIES.—There are
authorized to be transferred from the Federal Old-Age and
Survivors Insurance Trust Fund and the Federal Disability
Insurance Trust Fund each fiscal year such sums as may
be necessary to make payments to employment networks
under this section. Money paid from the Trust Funds under
this section with respect to title II disability beneficiaries
who are entitled to benefits under section 223 or who
are entitled 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 Insur-
ance Trust Fund, and all other money paid from the Trust
Funds under this section shall be charged to the Federal
Old-Age and Survivors Insurance Trust Fund.
‘‘(B) TITLE
XVI
DISABILITY
BENEFICIARIES.—Amounts
authorized to be appropriated to the Social Security
H. R. 1180—14
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 nec-
essary to carry out the provisions of this section with
respect to title XVI disability beneficiaries.
‘‘(2) ADMINISTRATIVE EXPENSES.—The costs of administering
this section (other than payments to employment networks)
shall be paid from amounts made available for the administra-
tion of title II and amounts made available for the administra-
tion of title XVI, and shall be allocated among such amounts
as appropriate.
‘‘(k) DEFINITIONS.—In this section:
‘‘(1) COMMISSIONER.—The term ‘Commissioner’ means the
Commissioner of Social Security.
‘‘(2) DISABLED
BENEFICIARY.—The term ‘disabled bene-
ficiary’ means a title II disability beneficiary or a title XVI
disability beneficiary.
‘‘(3) TITLE II DISABILITY BENEFICIARY.—The term ‘title II
disability beneficiary’ means 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)). An individual is a title II dis-
ability beneficiary for each month for which such individual
is entitled to such benefits.
‘‘(4) 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 disability (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.
‘‘(5) SUPPLEMENTAL SECURITY INCOME BENEFIT.—The term
‘supplemental security income benefit under title XVI’ means
a cash benefit under section 1611 or 1619(a), and does not
include a State supplementary payment, administered federally
or otherwise.
‘‘(l) REGULATIONS.—Not later than 1 year after the date of
the enactment of the Ticket to Work and Work Incentives Improve-
ment Act of 1999, the Commissioner 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 221(i) of the Social Security Act (42 U.S.C.
421(i)) is amended by adding at the end the following
new paragraph:
‘‘(5) For suspension of reviews under this subsection in the
case of an individual using a ticket to work and self-sufficiency,
see section 1148(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 rehabilita-
tion services’’ and inserting ‘‘a program consisting of the
Ticket to Work and Self-Sufficiency Program under section
H. R. 1180—15
1148 or another program of vocational rehabilitation serv-
ices, employment services, 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 admin-
istering 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 voca-
tional rehabilitation services’’ and inserting ‘‘a program
consisting of the Ticket to Work and Self-Sufficiency Pro-
gram under section 1148 or another program of vocational
rehabilitation services, employment services, or other sup-
port 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 para-
graph:
‘‘(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 1148(i).’’.
(c) EFFECTIVE DATE.—Subject to subsection (d), the amend-
ments made by subsections (a) and (b) shall take effect with the
first month following 1 year after the date of the enactment of
this Act.
(d) GRADUATED IMPLEMENTATION OF PROGRAM.—
(1) IN
GENERAL.—Not later than 1 year after the date
of the enactment of this Act, the Commissioner of Social Secu-
rity shall commence implementation of the amendments made
by this section (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 implementation of the Ticket
to Work and Self-Sufficiency Program, the development and
refinement of referral processes, payment systems, computer
linkages, management information systems, and administrative
processes necessary to provide for full implementation of such
amendments. Subsection (c) shall apply with respect to para-
graphs (1)(C) and (2)(B) of subsection (b) without regard to
this subsection.
(2) REQUIREMENTS.—Implementation of the Program at
each phase-in site shall be carried out on a wide enough scale
to permit a thorough evaluation 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.
H. R. 1180—16
(3) FULL
IMPLEMENTATION.—The Commissioner shall
ensure that ability to provide tickets and services to individuals
under the Program exists in every State as soon as practicable
on or after the effective date specified in subsection (c) but
not later than 3 years after such date.
(4) ONGOING EVALUATION OF PROGRAM.—
(A) IN GENERAL.—The Commissioner shall provide for
independent evaluations to assess the effectiveness of the
activities carried out under this section and the amend-
ments made thereby. Such evaluations shall address the
cost-effectiveness of such activities, as well as the effects
of this section and the amendments made thereby on work
outcomes for beneficiaries receiving tickets to work and
self-sufficiency under the Program.
(B) CONSULTATION.—Evaluations shall be conducted
under this paragraph after receiving relevant advice from
experts in the fields of disability, vocational rehabilitation,
and program evaluation and individuals using tickets to
work and self-sufficiency under the Program and in con-
sultation with the Ticket to Work and Work Incentives
Advisory Panel established under section 101(f ) of this
Act, the Comptroller General of the United States, other
agencies of the Federal Government, and private organiza-
tions with appropriate expertise.
(C) METHODOLOGY.—
(i) IMPLEMENTATION.—The Commissioner, in con-
sultation with the Ticket to Work and Work Incentives
Advisory Panel established under section 101(f ) of this
Act, shall ensure that plans for evaluations and data
collection methods under the Program are appro-
priately designed to obtain detailed employment
information.
(ii) SPECIFIC
MATTERS
TO
BE
ADDRESSED.—Each
such evaluation shall address (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, voca-
tional rehabilitation services, and other support
services furnished to beneficiaries in receipt of
tickets under the Program who return to work
and to those who do not return to work;
(IV) the duration of employment services, voca-
tional rehabilitation services, and other support
services furnished to beneficiaries in receipt of
tickets under the Program who return to work
and the duration of such services furnished to
those who do not return to work and the cost
to employment networks of furnishing such serv-
ices;
(V) the employment outcomes, including
wages, occupations, benefits, and hours worked,
of beneficiaries who return to work after receiving
H. R. 1180—17
tickets under the Program and those who return
to work without receiving such tickets;
(VI) the characteristics of individuals in
possession of tickets under the Program who are
not accepted for services and, to the extent reason-
ably determinable, the reasons for which such
beneficiaries were not accepted for services;
(VII) the characteristics of providers whose
services are provided within an employment net-
work under the Program;
(VIII) the extent (if any) to which employment
networks display a greater willingness to provide
services to beneficiaries with a range of disabil-
ities;
(IX) the characteristics (including employment
outcomes) of those beneficiaries who receive serv-
ices under the outcome payment system and of
those beneficiaries who receive services under the
outcome-milestone payment system;
(X) measures of satisfaction among bene-
ficiaries in receipt of tickets under the Program;
and
(XI) reasons for (including comments solicited
from beneficiaries regarding) their choice not to
use their tickets or their inability to return to
work despite the use of their tickets.
(D) PERIODIC
EVALUATION
REPORTS.—Following the
close of the third and fifth fiscal years ending after the
effective date under subsection (c), and prior to the close
of the seventh fiscal year ending after such date, the
Commissioner shall transmit to the Committee on Ways
and Means of the House of Representatives and the Com-
mittee on Finance of the Senate a report containing the
Commissioner’s evaluation of the progress of activities con-
ducted under the provisions of this section and the amend-
ments made thereby. Each such report shall set forth the
Commissioner’s evaluation of the extent to which the Pro-
gram has been successful and the Commissioner’s conclu-
sions on whether or how the Program should be modified.
Each such report shall include such data, findings, mate-
rials, and recommendations as the Commissioner may con-
sider appropriate.
(5) EXTENT OF STATE’S RIGHT OF FIRST REFUSAL 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 subsection (a) have not been
fully implemented pursuant to this subsection, the Commis-
sioner shall determine by regulation the extent to which—
(i) the requirement under section 222(a) of the
Social Security Act (42 U.S.C. 422(a)) for prompt refer-
rals to a State agency; and
(ii) the authority of the Commissioner under sec-
tion 222(d)(2) of such Act (42 U.S.C. 422(d)(2)) to pro-
vide vocational rehabilitation services in such State
by agreement or contract with other public or private
agencies, organizations, institutions, or individuals,
shall apply in such State.
H. R. 1180—18
(B) EXISTING AGREEMENTS.—Nothing in subparagraph
(A) or the amendments made by subsection (a) shall be
construed to limit, impede, or otherwise affect any agree-
ment entered into pursuant to section 222(d)(2) of the
Social Security Act (42 U.S.C. 422(d)(2)) before the date
of the enactment of this Act with respect to services pro-
vided pursuant to such agreement to beneficiaries receiving
services under such agreement as of such date, except
with respect to services (if any) to be provided after 3
years after the effective date provided in subsection (c).
(e) SPECIFIC REGULATIONS REQUIRED.—
(1) IN GENERAL.—The Commissioner of Social Security shall
prescribe such regulations as are necessary to implement the
amendments made by this section.
(2) SPECIFIC MATTERS TO BE INCLUDED IN REGULATIONS.—
The matters which shall be addressed in such regulations shall
include—
(A) the form and manner in which tickets to work
and self-sufficiency may be distributed to beneficiaries
pursuant to section 1148(b)(1) of the Social Security Act;
(B) the format and wording of such tickets, which
shall incorporate by reference any contractual terms gov-
erning service by employment networks under the Program;
(C) the form and manner in which State agencies may
elect participation in the Ticket to Work and Self-Suffi-
ciency Program pursuant to section 1148(c)(1) of such Act
and provision for periodic opportunities for exercising such
elections;
(D) the status of State agencies under section 1148(c)(1)
of such Act at the time that State agencies exercise elec-
tions under that section;
(E) the terms of agreements to be entered into with
program managers pursuant to section 1148(d) of such
Act, including—
(i) the terms by which program managers are pre-
cluded from direct participation in the delivery of serv-
ices pursuant to section 1148(d)(3) of such Act;
(ii) standards which must be met by quality assur-
ance measures referred to in paragraph (6) of section
1148(d) of such Act and methods of recruitment of
employment networks utilized pursuant to paragraph
(2) of section 1148(e) of such Act; and
(iii) the format under which dispute resolution will
operate under section 1148(d)(7) of such Act;
(F) the terms of agreements to be entered into with
employment networks pursuant to section 1148(d)(4) of
such Act, including—
(i) the manner in which service areas are specified
pursuant to section 1148(f )(2)(A) of such Act;
(ii) the general selection criteria and the specific
selection criteria which are applicable to employment
networks under section 1148(f )(1)(C) of such Act in
selecting service providers;
(iii) specific requirements relating to annual finan-
cial reporting by employment networks pursuant to
section 1148(f )(3) of such Act; and
H. R. 1180—19
(iv) the national model to which periodic outcomes
reporting by employment networks must conform
under section 1148(f )(4) of such Act;
(G) standards which must be met by individual work
plans pursuant to section 1148(g) of such Act;
(H) standards which must be met by payment systems
required under section 1148(h) of such Act, including—
(i) the form and manner in which elections by
employment networks of payment systems are to be
exercised pursuant to section 1148(h)(1)(A) of such Act;
(ii) the terms which must be met by an outcome
payment system under section 1148(h)(2) of such Act;
(iii) the terms which must be met by an outcome-
milestone payment system under section 1148(h)(3) of
such Act;
(iv) any revision of the percentage specified in
paragraph (2)(C) of section 1148(h) of such Act or the
period of time specified in paragraph (4)(B) of such
section 1148(h) of such Act; and
(v) annual oversight procedures for such systems;
and
(I) procedures for effective oversight of the Program
by the Commissioner of Social Security, including periodic
reviews and reporting requirements.
(f ) THE TICKET TO WORK AND WORK INCENTIVES ADVISORY
PANEL.—
(1) ESTABLISHMENT.—There is established within the Social
Security Administration a panel to be known as the ‘‘Ticket
to Work and Work Incentives Advisory Panel’’ (in this sub-
section referred to as the ‘‘Panel’’).
(2) DUTIES OF PANEL.—It shall be the duty of the Panel
to—
(A) advise the President, the Congress, and the
Commissioner of Social Security on issues related to work
incentives programs, planning, and assistance for individ-
uals with disabilities, including work incentive provisions
under titles II, XI, XVI, XVIII, and XIX of the Social
Security Act (42 U.S.C. 401 et seq., 1301 et seq., 1381
et seq., 1395 et seq., 1396 et seq.); and
(B) with respect to the Ticket to Work and Self-Suffi-
ciency Program established under section 1148 of such
Act—
(i) advise the Commissioner of Social Security with
respect to establishing phase-in sites for such Program
and fully implementing the Program thereafter, the
refinement of access of disabled beneficiaries to employ-
ment networks, payment systems, and management
information systems, and advise the Commissioner
whether such measures are being taken to the extent
necessary to ensure the success of the Program;
(ii) advise the Commissioner regarding the most
effective designs for research and demonstration
projects associated with the Program or conducted
pursuant to section 302 of this Act;
H. R. 1180—20
(iii) advise the Commissioner on the development
of performance measurements relating to quality assur-
ance under section 1148(d)(6) of the Social Security
Act; and
(iv) furnish progress reports on the Program to
the Commissioner and each House of Congress.
(3) MEMBERSHIP.—
(A) NUMBER AND APPOINTMENT.—The Panel shall be
composed of 12 members as follows:
(i) four members appointed by the President, not
more than two of whom may be of the same political
party;
(ii) two members appointed by the Speaker of the
House of Representatives, in consultation with the
Chairman of the Committee on Ways and Means of
the House of Representatives;
(iii) two members appointed by the minority leader
of the House of Representatives, in consultation with
the ranking member of the Committee on Ways and
Means of the House of Representatives;
(iv) two members appointed by the majority leader
of the Senate, in consultation with the Chairman of
the Committee on Finance of the Senate; and
(v) two members appointed by the minority leader
of the Senate, in consultation with the ranking member
of the Committee on Finance of the Senate.
(B) REPRESENTATION.—
(i) IN GENERAL.—The members appointed under
subparagraph (A) shall have experience or expert
knowledge as a recipient, provider, employer, or
employee in the fields of, or related to, employment
services, vocational rehabilitation services, and other
support services.
(ii) REQUIREMENT.—At least one-half of the mem-
bers appointed under subparagraph (A) shall be
individuals with disabilities, or representatives of
individuals with disabilities, with consideration given
to current or former title II disability beneficiaries
or title XVI disability beneficiaries (as such terms are
defined in section 1148(k) of the Social Security Act
(as added by subsection (a)).
(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). The initial members shall be appointed not
later than 90 days after the date of the enactment
of this Act.
(ii) TERMS OF INITIAL APPOINTEES.—Of the mem-
bers first appointed under each clause of subparagraph
(A), as designated by the appointing authority for each
such clause—
(I) one-half of such members shall be
appointed for a term of 2 years; and
(II) the remaining members shall be appointed
for a term of 4 years.
H. R. 1180—21
(iii) VACANCIES.—Any member appointed 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 expiration of that mem-
ber’s term until a successor has taken office. A vacancy
in the Panel shall be filled in the manner in which
the original appointment was made.
(D) BASIC PAY.—Members shall each be paid at a rate,
and in a manner, that is consistent with guidelines estab-
lished 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 sections 5702 and 5703 of title 5, United
States Code.
(F) QUORUM.—Eight members of the Panel shall con-
stitute 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 quar-
terly and at other times at the call of the Chairperson
or a majority of its members.
(4) DIRECTOR AND STAFF OF PANEL; EXPERTS AND CONSULT-
ANTS.—
(A) DIRECTOR.—The Panel shall have a Director who
shall be appointed by the Chairperson, and paid at a rate,
and in a manner, that is consistent with guidelines estab-
lished under section 7 of the Federal Advisory Committee
Act (5 U.S.C. App.).
(B) STAFF.—Subject to rules prescribed by the Commis-
sioner of Social Security, the Director may appoint and
fix the pay of additional personnel as the Director considers
appropriate.
(C) EXPERTS AND CONSULTANTS.—Subject to rules pre-
scribed by the Commissioner of Social Security, the Director
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 con-
siders appropriate.
(B) POWERS OF MEMBERS AND AGENTS.—Any member
or agent of the Panel may, if authorized 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.
H. R. 1180—22
(6) REPORTS.—
(A) INTERIM REPORTS.—The Panel shall submit to the
President and the Congress interim reports at least
annually.
(B) FINAL REPORT.—The Panel shall 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 report shall contain a detailed statement of the
findings and conclusions of the Panel, together with its
recommendations for legislation and administrative actions
which the Panel considers appropriate.
(7) TERMINATION.—The Panel shall terminate 30 days after
the date of the submission of its final report under paragraph
(6)(B).
(8) AUTHORIZATION OF APPROPRIATIONS.—There are author-
ized 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 appropriate,
such sums as are necessary to carry out this subsection.
Subtitle B—Elimination of Work
Disincentives
SEC. 111. WORK ACTIVITY STANDARD AS A BASIS FOR REVIEW OF
AN INDIVIDUAL’S DISABLED STATUS.
(a) IN GENERAL.—Section 221 of the Social Security Act (42
U.S.C. 421) is amended by adding at the end the following new
subsection:
‘‘(m)(1) In any case where an individual entitled to disability
insurance benefits under section 223 or to monthly insurance bene-
fits 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 individual solely as
a result of the individual’s work activity;
‘‘(B) no work activity engaged in by the individual may
be used as evidence that the individual is no longer disabled;
and
‘‘(C) no cessation of work activity by the individual may
give rise to a presumption that the individual 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 exceed the level of
earnings established by the Commissioner to represent substan-
tial gainful activity.’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall take effect on January 1, 2002.
SEC. 112. EXPEDITED REINSTATEMENT OF DISABILITY BENEFITS.
(a) OASDI BENEFITS.—Section 223 of the Social Security Act
(42 U.S.C. 423) is amended—
H. R. 1180—23
(1) by redesignating subsection (i) as subsection ( j); and
(2) by inserting after subsection (h) the following new sub-
section:
‘‘Reinstatement of Entitlement
‘‘(i)(1)(A) Entitlement to benefits described in subparagraph
(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 para-
graph (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 therefor; and
‘‘(II) such entitlement terminated due to the perform-
ance 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 dis-
ability 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 individual
unable to perform substantial gainful activity.
‘‘(C)(i) Except as provided in clause (ii), the period prescribed
in this subparagraph with respect to an individual 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 declara-
tions by the individual that the individual meets the requirements
specified in clauses (ii) and (iii) of paragraph (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 Commissioner determines is
not entitled to reinstated benefits under this subsection.
‘‘(3) In determining whether an individual meets the require-
ments of paragraph (1)(B)(ii), the provisions of subsection (f ) shall
apply.
‘‘(4)(A)(i) Subject to clause (ii), entitlement to benefits 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 subsection had the individual
filed a request for reinstatement before the end of such month
H. R. 1180—24
shall be entitled to such benefit for such month if such request
for reinstatement is filed before the end of the twelfth month
immediately succeeding such month.
‘‘(B)(i) Subject to clauses (ii) and (iii), the amount of the benefit
payable for any month pursuant to the reinstatement of entitlement
under this subsection shall be determined in accordance with the
provisions of this title.
‘‘(ii) For purposes of computing the primary insurance amount
of an individual whose entitlement to benefits under this section
is reinstated under this subsection, the date of onset of the individ-
ual’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 payable for
any month pursuant to a request for reinstatement filed in accord-
ance with paragraph (2) shall be reduced 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 entitlement
reinstated under this subsection to an individual for any month
in which the individual engages in substantial gainful activity.
‘‘(D) The entitlement of any individual that is reinstated 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, entitlement to bene-
fits payable on the basis of such individual’s wages and self-employ-
ment income may be reinstated with respect to any person pre-
viously entitled to such benefits on the basis of an application
if the Commissioner determines that such person satisfies all the
requirements for entitlement to such benefits except requirements
related 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 reinstatement 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 accord-
ance with subsection (a)(1) of this section, or subsection (d)(1),
(e)(1), or (f )(1) of section 202, to be entitled to such benefits on
the basis of an application filed therefor.
‘‘(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 provisional benefits payable
in accordance with this paragraph, unless the Commissioner deter-
mines that the individual does not meet the requirements of para-
graph (1)(B)(i) or that the individual’s declaration under paragraph
(2)(A)(ii) is false. Any such determination by the Commissioner
H. R. 1180—25
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 indi-
vidual under this title on the basis of an application increased
by an amount equal to the amount, if any, by which such last
monthly benefit would have been increased 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 accordance with paragraph
(2)(A).
‘‘(ii) Provisional benefits shall end with the earliest of—
‘‘(I) the month in which the Commissioner makes a deter-
mination regarding the individual’s entitlement to reinstated
benefits;
‘‘(II) the fifth month following the month described in clause
(i);
‘‘(III) the month in which the individual performs substan-
tial gainful activity; or
‘‘(IV) the month in which the Commissioner determines
that the individual does not meet the requirements of para-
graph (1)(B)(i) or that the individual’s declaration made in
accordance with paragraph (2)(A)(ii) is false.
‘‘(D) In any case in which the Commissioner determines that
an individual is not entitled to reinstated benefits, any provisional
benefits paid to the individual under this paragraph shall not
be subject to recovery as an overpayment unless the Commissioner
determines that the individual 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 adding at the end the following
new subsection:
‘‘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 requirements of paragraph (2)(A)
during the period prescribed 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 disability pursuant to
an application filed therefor; and
‘‘(II) the individual thereafter was ineligible 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 blind-
ness 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);
H. R. 1180—26
‘‘(iii) the individual’s blindness or disability renders the
individual unable to perform substantial gainful activity; and
‘‘(iv) the individual satisfies the nonmedical requirements
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 individual 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 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 declara-
tions by the individual that the individual meets the requirements
specified in clauses (ii) through (iv) of paragraph (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 Commissioner determines is
not eligible for reinstated benefits under this subsection.
‘‘(3) In determining whether an individual meets the require-
ments 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 reinstatement is filed.
‘‘(B)(i) Subject to clause (ii), the amount of the benefit payable
for any month pursuant to the reinstatement of eligibility under
this subsection shall be determined in accordance with the provi-
sions of this title.
‘‘(ii) The benefit under this title payable for any month pursuant
to a request for reinstatement filed in accordance 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 condi-
tions as eligibility established pursuant to an application filed
therefor.
‘‘(5) Whenever an individual’s eligibility for benefits under this
title is reinstated under this subsection, eligibility 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 satis-
fies all the requirements for eligibility for such benefits except
requirements related to the filing of an application. The provisions
of paragraph (4) shall apply to the reinstated eligibility of the
spouse to the same extent that they apply to the reinstated eligi-
bility 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
H. R. 1180—27
deemed for purposes of paragraph (1)(B)(i)(I) to be eligible for
such benefits on the basis of an application filed therefor.
‘‘(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 provisional benefits payable
in accordance with this paragraph, unless the Commissioner deter-
mines that the individual does not meet the requirements of para-
graph (1)(B)(i) or that the individual’s declaration under paragraph
(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 previously an
eligible spouse of the individual under this title and the Commis-
sioner determines that such spouse satisfies all the requirements
of section 1614(b) except requirements related to the filing of an
application, 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 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 reinstatement is filed in accord-
ance with paragraph (2)(A).
‘‘(ii) Provisional benefits shall end with the earliest of—
‘‘(I) the month in which the Commissioner makes a deter-
mination regarding the individual’s eligibility for reinstated
benefits;
‘‘(II) the fifth month following the month for which provi-
sional benefits are first payable under clause (i); or
‘‘(III) the month in which the Commissioner determines
that the individual does not meet the requirements of para-
graph (1)(B)(i) or that the individual’s declaration made in
accordance with paragraph (2)(A)(ii) is false.
‘‘(D) In any case in which the Commissioner determines that
an individual is not eligible for reinstated benefits, any provisional
benefits paid to the individual under this paragraph shall not
be subject to recovery as an overpayment unless the Commissioner
determines that the individual 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 paragraph (7),
the term ‘benefits under this title’ includes State supplementary
payments made pursuant to an agreement under section 1616(a)
of this Act 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 sub-
section (p)(2) and been determined to be eligible for
reinstatement.’’.
(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 ‘‘eligible’’.
(c) EFFECTIVE DATE.—
H. R. 1180—28
(1) IN GENERAL.—The amendments made by this section
shall take effect on the first day of the thirteenth month begin-
ning after the date of the enactment of this Act.
(2) LIMITATION.—No benefit shall be payable under title
II or XVI on the basis of a request for reinstatement filed
under section 223(i) or 1631(p) of the Social Security Act (42
U.S.C. 423(i), 1383(p)) before the effective date described in
paragraph (1).
Subtitle C—Work Incentives Planning,
Assistance, and Outreach
SEC. 121. 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 101 of this Act, is amended by
adding after section 1148 the following new section:
‘‘WORK INCENTIVES OUTREACH PROGRAM
‘‘SEC. 1149. (a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—The Commissioner, in consultation with
the Ticket to Work and Work Incentives Advisory Panel estab-
lished under section 101(f ) of the Ticket to Work and Work
Incentives Improvement Act of 1999, shall establish a commu-
nity-based work incentives planning and assistance program
for the purpose of disseminating accurate information to dis-
abled 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, coopera-
tive agreements, or contracts to provide benefits planning
and assistance, including information on the availability
of protection and advocacy services, to disabled bene-
ficiaries, including individuals participating in the Ticket
to Work and Self-Sufficiency Program established under
section 1148, the program established under section 1619,
and other programs that are designed to encourage disabled
beneficiaries to work;
‘‘(B) conduct directly, or through grants, cooperative
agreements, or contracts, ongoing outreach efforts to dis-
abled beneficiaries (and to the families of such bene-
ficiaries) who are potentially eligible to participate in Fed-
eral or State work incentive programs that are designed
to assist disabled beneficiaries to work, including—
‘‘(i) preparing and disseminating information
explaining such programs; and
‘‘(ii) working in cooperation with other Federal,
State, and private agencies and nonprofit organizations
that serve disabled beneficiaries, and with agencies
and organizations that focus on vocational rehabilita-
tion and work-related training and counseling;
‘‘(C) establish a corps of trained, accessible, and respon-
sive work incentives specialists within the Social Security
H. R. 1180—29
Administration who will specialize in disability work incen-
tives under titles II and XVI for the purpose of dissemi-
nating 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 specialists and
individuals providing planning assistance described in
subparagraph (C); and
‘‘(ii) technical assistance to organizations and enti-
ties that are designed to encourage disabled bene-
ficiaries to return to work.
‘‘(3) COORDINATION WITH OTHER PROGRAMS.—The respon-
sibilities of the Commissioner established under this section
shall be coordinated with other public and private programs
that provide information and assistance regarding rehabilita-
tion services and independent living supports and benefits plan-
ning 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 pro-
grams that are designed to assist disabled beneficiaries,
including educational agencies that provide information and
assistance regarding rehabilitation, school-to-work programs,
transition services (as defined in, and provided in accordance
with, the Individuals with Disabilities Education Act (20 U.S.C.
1400 et seq.)), a one-stop delivery system established under
subtitle B of title I of the Workforce Investment Act of 1998
(29 U.S.C. 2811 et seq.), and other services.
‘‘(b) CONDITIONS.—
‘‘(1) SELECTION OF ENTITIES.—
‘‘(A) APPLICATION.—An entity shall submit an applica-
tion for a grant, cooperative agreement, or contract to
provide benefits planning and assistance to the Commis-
sioner at such time, in such manner, and containing such
information as the Commissioner may determine is nec-
essary to meet the requirements of this section.
‘‘(B) STATEWIDENESS.—The Commissioner shall ensure
that the planning, assistance, and information described
in paragraph (2) shall be available on a statewide basis.
‘‘(C) ELIGIBILITY
OF
STATES
AND
PRIVATE
ORGANIZA-
TIONS.—
‘‘(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 described in clause (ii), that the
Commissioner determines is qualified to provide the
planning, assistance, and information described in
paragraph (2)).
H. R. 1180—30
‘‘(ii) AGENCIES
AND
ENTITIES
DESCRIBED.—The
agencies and entities described in this clause are the
following:
‘‘(I) Any public or private agency or organiza-
tion (including Centers for Independent Living
established under title VII of the Rehabilitation
Act of 1973 (29 U.S.C. 796 et seq.), protection
and advocacy organizations, client assistance pro-
grams established in accordance with section 112
of the Rehabilitation Act of 1973 (29 U.S.C. 732),
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 Commis-
sioner determines satisfies the requirements of this
section.
‘‘(II) The State agency administering the State
program funded under part A of title IV.
‘‘(D) EXCLUSION
FOR
CONFLICT
OF
INTEREST.—The
Commissioner may not award a grant, cooperative agree-
ment, 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, coopera-
tive agreement, or contract to provide benefits planning and
assistance shall select individuals who will act as planners
and provide information, guidance, and planning to disabled
beneficiaries on the—
‘‘(A) availability and interrelation of any Federal or
State work incentives programs designed to assist disabled
beneficiaries that the individual may be eligible to partici-
pate in;
‘‘(B) adequacy of any health benefits coverage 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 advocacy services
for disabled beneficiaries and how to access such services.
‘‘(3) AMOUNT
OF
GRANTS, COOPERATIVE
AGREEMENTS, OR
CONTRACTS.—
‘‘(A) BASED
ON
POPULATION
OF
DISABLED
BENE-
FICIARIES.—Subject to subparagraph (B), the Commissioner
shall award a grant, cooperative agreement, or contract
under this section to an entity based on the percentage
of the population of the State where the entity is located
who are disabled beneficiaries.
‘‘(B) LIMITATIONS.—
‘‘(i) PER GRANT.—No entity shall receive 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 contracts
awarded under this section for a fiscal year may not
exceed $23,000,000.
H. R. 1180—31
‘‘(4) ALLOCATION OF COSTS.—The costs of carrying 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 ‘Commissioner’ means the
Commissioner of Social Security.
‘‘(2) DISABLED
BENEFICIARY.—The term ‘disabled bene-
ficiary’ has the meaning given that term in section 1148(k)(2).
‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to carry out this section $23,000,000 for each
of the fiscal years 2000 through 2004.’’.
SEC. 122. STATE GRANTS FOR WORK INCENTIVES ASSISTANCE TO DIS-
ABLED BENEFICIARIES.
Part A of title XI of the Social Security Act (42 U.S.C. 1301
et seq.), as amended by section 121 of this Act, is amended by
adding after section 1149 the following new section:
‘‘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 pursuant 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 beneficiaries.
‘‘(b) SERVICES PROVIDED.—Services provided to disabled bene-
ficiaries pursuant to a payment made under this section may
include—
‘‘(1) information and advice about obtaining vocational
rehabilitation and employment services; and
‘‘(2) advocacy or other services that a disabled beneficiary
may need to secure or regain gainful employment.
‘‘(c) APPLICATION.—In order to receive payments under this
section, a protection and advocacy system shall submit an applica-
tion to the Commissioner, at such time, in such form and manner,
and accompanied by such information and assurances as the
Commissioner may require.
‘‘(d) AMOUNT OF PAYMENTS.—
‘‘(1) IN GENERAL.—Subject to the amount appropriated for
a fiscal year for making payments under this section, a protec-
tion and advocacy system shall not be paid an amount that
is less than—
‘‘(A) in the case of a protection and advocacy 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 advocacy system
located in Guam, American Samoa, the United States
Virgin Islands, and the Commonwealth of the Northern
Mariana Islands, $50,000.
H. R. 1180—32
‘‘(2) INFLATION ADJUSTMENT.—For each fiscal year in which
the total amount appropriated to carry out this section exceeds
the total amount appropriated to carry out this section in
the preceding fiscal year, the Commissioner shall increase each
minimum payment under subparagraphs (A) and (B) of para-
graph (1) by a percentage equal to the percentage increase
in the total amount so appropriated to carry out this section.
‘‘(e) ANNUAL REPORT.—Each protection and advocacy system
that receives a payment under this section shall submit an annual
report to the Commissioner and the Ticket to Work and Work
Incentives Advisory Panel established under section 101(f ) of the
Ticket to Work and Work Incentives Improvement Act of 1999
on the services provided to individuals by the system.
‘‘(f ) FUNDING.—
‘‘(1) ALLOCATION OF PAYMENTS.—Payments under this sec-
tion shall be made 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.
‘‘(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 fiscal year.
‘‘(g) DEFINITIONS.—In this section:
‘‘(1) COMMISSIONER.—The term ‘Commissioner’ means the
Commissioner of Social Security.
‘‘(2) DISABLED
BENEFICIARY.—The term ‘disabled bene-
ficiary’ has the meaning given that term in section 1148(k)(2).
‘‘(3) PROTECTION AND ADVOCACY SYSTEM.—The term ‘protec-
tion and advocacy system’ means a protection and advocacy
system established pursuant to part C of title I of the Develop-
mental Disabilities Assistance and Bill of Rights Act (42 U.S.C.
6041 et seq.).
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to carry out this section $7,000,000 for each
of the fiscal years 2000 through 2004.’’.
TITLE II—EXPANDED AVAILABILITY OF
HEALTH CARE SERVICES
SEC. 201. EXPANDING STATE OPTIONS UNDER THE MEDICAID PRO-
GRAM FOR WORKERS WITH DISABILITIES.
(a) IN GENERAL.—
(1) STATE
OPTION
TO
ELIMINATE
INCOME, ASSETS, AND
RESOURCE LIMITATIONS FOR WORKERS WITH DISABILITIES BUYING
INTO MEDICAID.—Section 1902(a)(10)(A)(ii) of the Social Security
Act (42 U.S.C. 1396a(a)(10)(A)(ii)) is amended—
(A) in subclause (XIII), by striking ‘‘or’’ at the end;
(B) in subclause (XIV), by adding ‘‘or’’ at the end;
and
(C) by adding at the end the following new subclause:
‘‘(XV) who, but for earnings in excess of the
limit established under section 1905(q)(2)(B),
would be considered to be receiving supplemental
security income, who is at least 16, but less than
H. R. 1180—33
65, years of age, and whose assets, resources, and
earned or unearned income (or both) do not exceed
such limitations (if any) as the State may estab-
lish;’’.
(2) STATE OPTION TO PROVIDE OPPORTUNITY FOR EMPLOYED
INDIVIDUALS WITH A MEDICALLY IMPROVED DISABILITY TO BUY
INTO MEDICAID.—
(A) ELIGIBILITY.—Section 1902(a)(10) (A)(ii) of the
Social Security Act (42 U.S.C. 1396a(a)(10)(A)(ii)), as
amended by paragraph (1), is amended—
(i) in subclause (XIV), by striking ‘‘or’’ at the end;
(ii) in subclause (XV), by adding ‘‘or’’ at the end;
and
(iii) by adding at the end the following new sub-
clause:
‘‘(XVI) who are employed individuals with a
medically improved disability described in section
1905(v)(1) and whose assets, resources, and earned
or unearned income (or both) do not exceed such
limitations (if any) as the State may establish,
but only if the State provides medical assistance
to individuals described in subclause (XV);’’.
(B) DEFINITION OF EMPLOYED INDIVIDUALS WITH A MEDI-
CALLY IMPROVED DISABILITY.—Section 1905 of the Social
Security Act (42 U.S.C. 1396d) is amended by adding at
the end the following new subsection:
‘‘(v)(1) The term ‘employed individual with a medically improved
disability’ means an individual who—
‘‘(A) is at least 16, but less than 65, years of age;
‘‘(B) is employed (as defined in paragraph (2));
‘‘(C) ceases to be eligible for medical assistance under sec-
tion 1902(a)(10)(A)(ii)(XV) because the individual, by reason
of medical improvement, is determined at the time of a regu-
larly scheduled continuing disability review to no longer be
eligible for benefits under section 223(d) or 1614(a)(3); and
‘‘(D) continues to have a severe medically determinable
impairment, as determined under regulations of the Secretary.
‘‘(2) For purposes of paragraph (1), an individual is considered
to be ‘employed’ if the individual—
‘‘(A) is earning at least the applicable minimum wage
requirement under section 6 of the Fair Labor Standards Act
(29 U.S.C. 206) and working at least 40 hours per month;
or
‘‘(B) is engaged in a work effort that meets substantial
and reasonable threshold criteria for hours of work, wages,
or other measures, as defined by the State and approved by
the Secretary.’’.
(C) CONFORMING AMENDMENT.—Section 1905(a) of such
Act (42 U.S.C. 1396d(a)) is amended in the matter pre-
ceding paragraph (1)—
(i) in clause (x), by striking ‘‘or’’ at the end;
(ii) in clause (xi), by adding ‘‘or’’ at the end; and
(iii) by inserting after clause (xi), the following
new clause:
‘‘(xii) employed individuals with a medically improved dis-
ability (as defined in subsection (v)),’’.
H. R. 1180—34
(3) STATE AUTHORITY TO IMPOSE INCOME-RELATED PREMIUMS
AND COST-SHARING.—Section 1916 of such Act (42 U.S.C. 1396o)
is amended—
(A) in subsection (a), by striking ‘‘The State plan’’
and inserting ‘‘Subject to subsection (g), the State plan’’;
and
(B) by adding at the end the following new subsection:
‘‘(g) With respect to individuals provided medical assistance
only under subclause (XV) or (XVI) of section 1902(a)(10)(A)(ii)—
‘‘(1) a State may (in a uniform manner for individuals
described in either such subclause)—
‘‘(A) require such individuals to pay premiums or other
cost-sharing charges set on a sliding scale based on income
that the State may determine; and
‘‘(B) require payment of 100 percent of such premiums
for such year in the case of such an individual who has
income for a year that exceeds 250 percent of the income
official poverty line (referred to in subsection (c)(1))
applicable to a family of the size involved, except that
in the case of such an individual who has income for
a year that does not exceed 450 percent of such poverty
line, such requirement may only apply to the extent such
premiums do not exceed 7.5 percent of such income; and
‘‘(2) such State shall require payment of 100 percent of
such premiums for a year by such an individual whose adjusted
gross income (as defined in section 62 of the Internal Revenue
Code of 1986) for such year exceeds $75,000, except that a
State may choose to subsidize such premiums by using State
funds which may not be federally matched under this title.
In the case of any calendar year beginning after 2000, the dollar
amount specified in paragraph (2) shall be increased in accordance
with the provisions of section 215(i)(2)(A)(ii).’’.
(4) PROHIBITION AGAINST SUPPLANTATION OF STATE FUNDS
AND STATE FAILURE TO MAINTAIN EFFORT.—Section 1903(i) of
such Act (42 U.S.C. 1396b(i)) is amended—
(A) by striking the period at the end of paragraph
(19) and inserting ‘‘; or’’; and
(B) by inserting after such paragraph the following
new paragraph:
‘‘(20) with respect to amounts expended for medical assist-
ance provided to an individual described in subclause (XV)
or (XVI) of section 1902(a)(10)(A)(ii) for a fiscal year unless
the State demonstrates to the satisfaction of the Secretary
that the level of State funds expended for such fiscal year
for programs to enable working individuals with disabilities
to work (other than for such medical assistance) is not less
than the level expended for such programs during the most
recent State fiscal year ending before the date of the enactment
of this paragraph.’’.
(b) CONFORMING AMENDMENTS.—Section 1903(f )(4) of the Social
Security Act (42 U.S.C. 1396b(f )(4) is amended in the matter pre-
ceding subparagraph (A) by inserting ‘‘1902(a)(10)(A)(ii)(XV),
1902(a)(10)(A)(ii)(XVI),’’ before ‘‘1905(p)(1)’’.
(c) GAO REPORT.—Not later than 3 years after the date of
the enactment of this Act, the Comptroller General of the United
States shall submit a report to the Congress regarding the amend-
ments made by this section that examines—
H. R. 1180—35
(1) the extent to which higher health care costs for individ-
uals with disabilities at higher income levels deter employment
or progress in employment;
(2) whether such individuals have health insurance cov-
erage or could benefit from the State option established under
such amendments to provide a medicaid buy-in; and
(3) how the States are exercising such option, including—
(A) how such States are exercising the flexibility
afforded them with regard to income disregards;
(B) what income and premium levels have been set;
(C) the degree to which States are subsidizing pre-
miums above the dollar amount specified in section
1916(g)(2) of the Social Security Act (42 U.S.C. 1396o(g)(2));
and
(D) the extent to which there exists any crowd-out
effect.
(d) EFFECTIVE DATE.—The amendments made by this section
apply to medical assistance for items and services furnished on
or after October 1, 2000.
SEC. 202. EXTENDING MEDICARE COVERAGE FOR OASDI DISABILITY
BENEFIT RECIPIENTS.
(a) IN GENERAL.—The next to last sentence of section 226(b)
of the Social Security Act (42 U.S.C. 426) is amended by striking
‘‘24’’ and inserting ‘‘78’’.
(b) EFFECTIVE DATE.—The amendment made by subsection (a)
shall be effective on and after October 1, 2000.
(c) GAO REPORT.—Not later than 5 years after the date of
the enactment of this Act, the Comptroller General of the United
States shall submit a report to the Congress that—
(1) examines the effectiveness and cost of the amendment
made by subsection (a);
(2) examines the necessity and effectiveness of providing
continuation of medicare coverage under section 226(b) of the
Social Security Act (42 U.S.C. 426(b)) to individuals whose
annual income exceeds the contribution and benefit base (as
determined under section 230 of such Act (42 U.S.C. 430));
(3) examines the viability of providing the continuation
of medicare coverage under such section 226(b) based on a
sliding scale premium for individuals whose annual income
exceeds such contribution and benefit base;
(4) examines the viability of providing the continuation
of medicare coverage under such section 226(b) based on a
premium buy-in by the beneficiary’s employer in lieu of coverage
under private health insurance;
(5) examines the interrelation between the use of the
continuation of medicare coverage under such section 226(b)
and the use of private health insurance coverage by individuals
during the extended period; and
(6) recommends such legislative or administrative changes
relating to the continuation of medicare coverage for recipients
of social security disability benefits as the Comptroller General
determines are appropriate.
SEC. 203. GRANTS TO DEVELOP AND ESTABLISH STATE INFRASTRUC-
TURES 
TO 
SUPPORT 
WORKING 
INDIVIDUALS 
WITH
DISABILITIES.
(a) ESTABLISHMENT.—
H. R. 1180—36
(1) IN
GENERAL.—The Secretary of Health and Human
Services (in this section referred to as the ‘‘Secretary’’) shall
award grants described in subsection (b) to States to support
the design, establishment, and operation of State infrastruc-
tures that provide items and services to support working
individuals with disabilities.
(2) APPLICATION.—In order to be eligible for an award
of a grant under this section, a State shall submit an application
to the Secretary at such time, in such manner, and containing
such information as the Secretary shall require.
(3) DEFINITION OF STATE.—In this section, the term ‘‘State’’
means each of the 50 States, the District of Columbia, Puerto
Rico, Guam, the United States Virgin Islands, American Samoa,
and the Commonwealth of the Northern Mariana Islands.
(b) GRANTS FOR INFRASTRUCTURE AND OUTREACH.—
(1) IN GENERAL.—Out of the funds appropriated under sub-
section (e), the Secretary shall award grants to States to—
(A) support the establishment, implementation, and
operation of the State infrastructures described in sub-
section (a); and
(B) conduct outreach campaigns regarding the exist-
ence of such infrastructures.
(2) ELIGIBILITY FOR GRANTS.—
(A) IN GENERAL.—No State may receive a grant under
this subsection unless the State demonstrates to the satis-
faction of the Secretary that the State makes personal
assistance services available under the State plan under
title XIX of the Social Security Act (42 U.S.C. 1396 et
seq.) to the extent necessary to enable individuals with
disabilities to remain employed, including individuals
described in section 1902(a)(10)(A)(ii)(XIII) of such Act (42
U.S.C. 1396a(a)(10)(A)(ii)(XIII)) if the State has elected
to provide medical assistance under such plan to such
individuals.
(B) DEFINITIONS.—In this section:
(i) EMPLOYED.—The term ‘‘employed’’ means—
(I) earning at least the applicable minimum
wage requirement under section 6 of the Fair
Labor Standards Act (29 U.S.C. 206) and working
at least 40 hours per month; or
(II) being engaged in a work effort that meets
substantial and reasonable threshold criteria for
hours of work, wages, or other measures, as
defined and approved by the Secretary.
(ii) PERSONAL
ASSISTANCE
SERVICES.—The term
‘‘personal assistance services’’ means a range of serv-
ices, provided by 1 or more persons, designed to assist
an individual with a disability to perform daily activi-
ties on and off the job that the individual would typi-
cally perform if the individual did not have a disability.
Such services shall be designed to increase the individ-
ual’s control in life and ability to perform everyday
activities on or off the job.
(3) DETERMINATION OF AWARDS.—
(A) IN GENERAL.—Subject to subparagraph (B), the Sec-
retary shall develop a methodology for awarding grants
H. R. 1180—37
to States under this section for a fiscal year in a manner
that—
(i) rewards States for their efforts in encouraging
individuals described in paragraph (2)(A) to be
employed; and
(ii) does not provide a State that has not elected
to provide medical assistance under title XIX of the
Social Security Act to individuals described in section
1902(a)(10)(A)(ii)(XIII) 
of 
that 
Act 
(42 
U.S.C.
1396a(a)(10)(A)(ii)(XIII)) 
with 
proportionally 
more
funds for a fiscal year than a State that has exercised
such election.
(B) AWARD LIMITS.—
(i) MINIMUM AWARDS.—
(I) IN GENERAL.—Subject to subclause (II), no
State with an approved application under this sec-
tion shall receive a grant for a fiscal year that
is less than $500,000.
(II) PRO
RATA
REDUCTIONS.—If the funds
appropriated under subsection (e) for a fiscal year
are not sufficient to pay each State with an
application approved under this section the min-
imum amount described in subclause (I), the Sec-
retary shall pay each such State an amount equal
to the pro rata share of the amount made available.
(ii) MAXIMUM AWARDS.—
(I) STATES THAT ELECTED OPTIONAL MEDICAID
ELIGIBILITY.—No State that has an application that
has been approved under this section and that
has elected to provide medical assistance under
title XIX of the Social Security Act to individuals
described in section 1902(a)(10)(A)(ii)(XIII) of such
Act (42 U.S.C. 1396a(a)(10)(A)(ii)(XIII)) shall
receive a grant for a fiscal year that exceeds 10
percent of the total expenditures by the State
(including the reimbursed Federal share of such
expenditures) for medical assistance provided
under such title for such individuals, as estimated
by the State and approved by the Secretary.
(II) OTHER STATES.—The Secretary shall deter-
mine, consistent with the limit described in sub-
clause (I), a maximum award limit for a grant
for a fiscal year for a State that has an application
that has been approved under this section but
that has not elected to provide medical assistance
under title XIX of the Social Security Act to
individuals 
described 
in 
section
1902(a)(10)(A)(ii)(XIII) of that Act (42 U.S.C.
1396a(a)(10)(A)(ii)(XIII)).
(c) AVAILABILITY OF FUNDS.—
(1) FUNDS AWARDED TO STATES.—Funds awarded to a State
under a grant made under this section for a fiscal year shall
remain available until expended.
(2) FUNDS NOT AWARDED TO STATES.—Funds not awarded
to States in the fiscal year for which they are appropriated
shall remain available in succeeding fiscal years for awarding
by the Secretary.
H. R. 1180—38
(d) ANNUAL REPORT.—A State that is awarded a grant under
this section shall submit an annual report to the Secretary on
the use of funds provided under the grant. Each report shall include
the percentage increase in the number of title II disability bene-
ficiaries, as defined in section 1148(k)(3) of the Social Security
Act (as added by section 101(a) of this Act) in the State, and
title XVI disability beneficiaries, as defined in section 1148(k)(4)
of the Social Security Act (as so added) in the State who return
to work.
(e) APPROPRIATION.—
(1) IN GENERAL.—Out of any funds in the Treasury not
otherwise appropriated, there is appropriated to make grants
under this section—
(A) for fiscal year 2001, $20,000,000;
(B) for fiscal year 2002, $25,000,000;
(C) for fiscal year 2003, $30,000,000;
(D) for fiscal year 2004, $35,000,000;
(E) for fiscal year 2005, $40,000,000; and
(F) for each of fiscal years 2006 through 2011, the
amount appropriated for the preceding fiscal year increased
by the percentage increase (if any) in the Consumer Price
Index for All Urban Consumers (United States city average)
for the preceding fiscal year.
(2) BUDGET AUTHORITY.—This subsection constitutes budget
authority in advance of appropriations Acts and represents
the obligation of the Federal Government to provide for the
payment of the amounts appropriated under paragraph (1).
(f ) RECOMMENDATION.—Not later than October 1, 2010, the
Secretary, in consultation with the Ticket to Work and Work Incen-
tives Advisory Panel established by section 101(f ) of this Act, shall
submit a recommendation to the Committee on Commerce of the
House of Representatives and the Committee on Finance of the
Senate regarding whether the grant program established under
this section should be continued after fiscal year 2011.
SEC. 204. DEMONSTRATION OF COVERAGE UNDER THE MEDICAID PRO-
GRAM 
OF 
WORKERS 
WITH 
POTENTIALLY 
SEVERE
DISABILITIES.
(a) STATE APPLICATION.—A State may apply to the Secretary
of Health and Human Services (in this section referred to as the
‘‘Secretary’’) for approval of a demonstration project (in this section
referred to as a ‘‘demonstration project’’) under which up to a
specified maximum number of individuals who are workers with
a potentially severe disability (as defined in subsection (b)(1)) are
provided medical assistance equal to—
(1) that provided under section 1905(a) of the Social Secu-
rity Act (42 U.S.C. 1396d(a)) to individuals described in section
1902(a)(10)(A)(ii)(XIII) 
of 
that 
Act 
(42 
U.S.C.
1396a(a)(10)(A)(ii)(XIII)); or
(2) in the case of a State that has not elected to provide
medical assistance under that section to such individuals, such
medical assistance as the Secretary determines is an appro-
priate equivalent to the medical assistance described in para-
graph (1).
(b) 
WORKER
WITH
A
POTENTIALLY
SEVERE
DISABILITY
DEFINED.—For purposes of this section—
H. R. 1180—39
(1) IN
GENERAL.—The term ‘‘worker with a potentially
severe disability’’ means, with respect to a demonstration
project, an individual who—
(A) is at least 16, but less than 65, years of age;
(B) has a specific physical or mental impairment that,
as defined by the State under the demonstration project,
is reasonably expected, but for the receipt of items and
services described in section 1905(a) of the Social Security
Act (42 U.S.C. 1396d(a)), to become blind or disabled (as
defined under section 1614(a) of the Social Security Act
(42 U.S.C. 1382c(a))); and
(C) is employed (as defined in paragraph (2)).
(2) DEFINITION OF EMPLOYED.—An individual is considered
to be ‘‘employed’’ if the individual—
(A) is earning at least the applicable minimum wage
requirement under section 6 of the Fair Labor Standards
Act (29 U.S.C. 206) and working at least 40 hours per
month; or
(B) is engaged in a work effort that meets substantial
and reasonable threshold criteria for hours of work, wages,
or other measures, as defined under the demonstration
project and approved by the Secretary.
(c) APPROVAL OF DEMONSTRATION PROJECTS.—
(1) IN GENERAL.—Subject to paragraph (3), the Secretary
shall approve applications under subsection (a) that meet the
requirements of paragraph (2) and such additional terms and
conditions as the Secretary may require. The Secretary may
waive the requirement of section 1902(a)(1) of the Social Secu-
rity Act (42 U.S.C. 1396a(a)(1)) to allow for sub-State dem-
onstrations.
(2) TERMS AND CONDITIONS OF DEMONSTRATION PROJECTS.—
The Secretary may not approve a demonstration project under
this section unless the State provides assurances satisfactory
to the Secretary that the following conditions are or will be
met:
(A) MAINTENANCE OF STATE EFFORT.—Federal funds
paid to a State pursuant to this section must be used
to supplement, but not supplant, the level of State funds
expended for workers with potentially severe disabilities
under programs in effect for such individuals at the time
the demonstration project is approved under this section.
(B) INDEPENDENT EVALUATION.—The State provides for
an independent evaluation of the project.
(3) LIMITATIONS ON FEDERAL FUNDING.—
(A) APPROPRIATION.—
(i) IN GENERAL.—Out of any funds in the Treasury
not otherwise appropriated, there is appropriated to
carry out this section—
(I) $42,000,000 for each of fiscal years 2001
through 2004; and
(II) $41,000,000 for each of fiscal years 2005
and 2006.
(ii) BUDGET
AUTHORITY.—Clause (i) constitutes
budget authority in advance of appropriations Acts
and represents the obligation of the Federal Govern-
ment to provide for the payment of the amounts appro-
priated under clause (i).
H. R. 1180—40
(B) LIMITATION ON PAYMENTS.—In no case may—
(i) the aggregate amount of payments made by
the Secretary to States under this section exceed
$250,000,000;
(ii) the aggregate amount of payments made by
the Secretary to States for administrative expenses
relating to annual reports required under subsection
(d) exceed $2,000,000 of such $250,000,000; or
(iii) payments be provided by the Secretary for
a fiscal year after fiscal year 2009.
(C) FUNDS ALLOCATED TO STATES.—The Secretary shall
allocate funds to States based on their applications and
the availability of funds. Funds allocated to a State under
a grant made under this section for a fiscal year shall
remain available until expended.
(D) FUNDS NOT ALLOCATED TO STATES.—Funds not allo-
cated to States in the fiscal year for which they are appro-
priated shall remain available in succeeding fiscal years
for allocation by the Secretary using the allocation formula
established under this section.
(E) PAYMENTS
TO
STATES.—The Secretary shall pay
to each State with a demonstration project approved under
this section, from its allocation under subparagraph (C),
an amount for each quarter equal to the Federal medical
assistance percentage (as defined in section 1905(b) of the
Social Security Act (42 U.S.C. 1395d(b)) of expenditures
in the quarter for medical assistance provided to workers
with a potentially severe disability.
(d) ANNUAL REPORT.—A State with a demonstration project
approved under this section shall submit an annual report to the
Secretary on the use of funds provided under the grant. Each
report shall include enrollment and financial statistics on—
(1) the total population of workers with potentially severe
disabilities served by the demonstration project; and
(2) each population of such workers with a specific physical
or mental impairment described in subsection (b)(1)(B) served
by such project.
(e) RECOMMENDATION.—Not later than October 1, 2004, the
Secretary shall submit a recommendation to the Committee on
Commerce of the House of Representatives and the Committee
on Finance of the Senate regarding whether the demonstration
project established under this section should be continued after
fiscal year 2006.
(f ) STATE DEFINED.—In this section, the term ‘‘State’’ has the
meaning given such term for purposes of title XIX of the Social
Security Act (42 U.S.C. 1396 et seq.).
SEC. 205. ELECTION BY DISABLED BENEFICIARIES TO SUSPEND
MEDIGAP INSURANCE WHEN COVERED UNDER A GROUP
HEALTH PLAN.
(a) IN GENERAL.—Section 1882(q) of the Social Security Act
(42 U.S.C. 1395ss(q)) is amended—
(1) in paragraph (5)(C), by inserting ‘‘or paragraph (6)’’
after ‘‘this paragraph’’; and
(2) by adding at the end the following new paragraph:
‘‘(6) Each medicare supplemental policy shall provide that
benefits and premiums under the policy shall be suspended
H. R. 1180—41
at the request of the policyholder if the policyholder is entitled
to benefits under section 226(b) and is covered under a group
health plan (as defined in section 1862(b)(1)(A)(v)). If such
suspension occurs and if the policyholder or certificate holder
loses coverage under the group health plan, such policy shall
be automatically reinstituted (effective as of the date of such
loss of coverage) under terms described in subsection
(n)(6)(A)(ii) as of the loss of such coverage if the policyholder
provides notice of loss of such coverage within 90 days after
the date of such loss.’’.
(b) EFFECTIVE DATE.—The amendments made by subsection
(a) apply with respect to requests made after the date of the
enactment of this Act.
TITLE III—DEMONSTRATION PROJECTS
AND STUDIES
SEC. 301. EXTENSION OF DISABILITY INSURANCE PROGRAM DEM-
ONSTRATION PROJECT AUTHORITY.
(a) EXTENSION OF AUTHORITY.—Title II of the Social Security
Act (42 U.S.C. 401 et seq.) is amended by adding at the end
the following new section:
‘‘DEMONSTRATION PROJECT AUTHORITY
‘‘SEC. 234. (a) AUTHORITY.—
‘‘(1) IN
GENERAL.—The Commissioner of Social Security
(in this section referred to as the ‘Commissioner’) shall develop
and carry out experiments and demonstration projects designed
to determine the relative advantages and disadvantages of—
‘‘(A) various alternative methods of treating the work
activity of individuals entitled to disability insurance bene-
fits under section 223 or to monthly insurance benefits
under section 202 based on such individual’s disability
(as defined in section 223(d)), including such methods as
a reduction in benefits based on earnings, designed to
encourage the return to work of such individuals;
‘‘(B) altering other limitations and conditions 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 section
226, altering the manner in which the program under
this title is administered, earlier referral of such individ-
uals 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 offsets using
variations in—
‘‘(i) the amount of the offset as a proportion of
earned income;
‘‘(ii) the duration of the offset period; and
‘‘(iii) the method of determining the amount of
income earned by such individuals,
to the end that savings will accrue to the Trust Funds, or
to otherwise promote the objectives or facilitate the administra-
tion of this title.
H. R. 1180—42
‘‘(2) AUTHORITY FOR EXPANSION OF SCOPE.—The Commis-
sioner may expand the scope of any such experiment or dem-
onstration project to include any group of applicants for benefits
under the program established under this title with impair-
ments 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 demonstration
projects developed under subsection (a) shall be of sufficient scope
and shall be carried out on a wide enough scale to permit a thorough
evaluation of the alternative methods under consideration while
giving assurance that the results derived from the experiments
and projects will obtain generally in the operation of the disability
insurance program under this title without committing such pro-
gram to the adoption of any particular system either locally or
nationally.
‘‘(c) AUTHORITY
TO
WAIVE
COMPLIANCE
WITH
BENEFITS
REQUIREMENTS.—In the case of any experiment or demonstration
project conducted under subsection (a), the Commissioner may
waive compliance with the benefit requirements of this title and
the requirements of section 1148 as they relate to the program
established under this title, and the Secretary may (upon the
request of the Commissioner) waive compliance 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 purposes
of notification and information only and containing a full and com-
plete description thereof, has been transmitted by the Commissioner
to the Committee on Ways and Means of the House of Representa-
tives 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 commit-
tees. 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) 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 Com-
mittee on Finance of the Senate an annual interim report
on the progress of the experiments and demonstration projects
carried out under this subsection together with any related
data and materials that the Commissioner may consider appro-
priate.
‘‘(2) TERMINATION AND FINAL REPORT.—The authority under
the preceding provisions of this section (including any waiver
granted pursuant to subsection (c)) shall terminate 5 years
after the date of the enactment of this Act. Not later than
90 days after the termination of any experiment or demonstra-
tion project carried out under this section, the Commissioner
shall submit to the Committee on Ways and Means of the
House of Representatives and to the Committee on Finance
of the Senate a final report with respect to that experiment
or demonstration project.’’.
H. R. 1180—43
(b) 
CONFORMING
AMENDMENTS; 
TRANSFER
OF
PRIOR
AUTHORITY.—
(1) CONFORMING AMENDMENTS.—
(A) REPEAL
OF
PRIOR
AUTHORITY.—Paragraphs (1)
through (4) of subsection (a) and subsection (c) of section
505 of the Social Security Disability Amendments of 1980
(42 U.S.C. 1310 note) are repealed.
(B) CONFORMING AMENDMENT REGARDING FUNDING.—
Section 201(k) of the Social Security Act (42 U.S.C. 401(k))
is amended by striking ‘‘section 505(a) of the Social Security
Disability Amendments of 1980’’ and inserting ‘‘section
234’’.
(2) TRANSFER OF PRIOR AUTHORITY.—With 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 the enactment
of this Act, the authority to conduct such experiment or dem-
onstration 
project 
(including 
the 
terms 
and 
conditions
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 REDUCTIONS
IN 
DISABILITY 
INSURANCE 
BENEFITS 
BASED 
ON
EARNINGS.
(a) AUTHORITY.—The Commissioner of Social Security shall con-
duct demonstration projects for the purpose of evaluating, through
the collection of data, a program for title II disability beneficiaries
(as defined in section 1148(k)(3) of the Social Security Act) under
which benefits payable under section 223 of such Act, or under
section 202 of such Act based on the beneficiary’s disability, are
reduced by $1 for each $2 of the beneficiary’s earnings that is
above a level to be determined by the Commissioner. Such projects
shall be conducted at a number of localities which the Commissioner
shall determine is sufficient to adequately evaluate the appropriate-
ness 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.
(b) SCOPE AND SCALE AND MATTERS TO BE DETERMINED.—
(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 thorough 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 operation in a locality within
an area under the administration 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, and other Federal programs under
the project being tested.
H. R. 1180—44
The Commissioner shall take into account advice provided by
the Ticket to Work and Work Incentives Advisory Panel pursu-
ant to section 101(f )(2)(B)(ii) of this Act.
(2) ADDITIONAL
MATTERS.—The Commissioner shall also
determine with respect to each project—
(A) the annual cost (including net cost) of the project
and the annual cost (including net cost) that would have
been incurred in the absence of the project;
(B) the determinants of return to work, including the
characteristics of the beneficiaries who participate in the
project; and
(C) the employment outcomes, including wages, occupa-
tions, 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 compliance with
the benefit provisions of title II of the Social Security Act (42
U.S.C. 401 et seq.), and the Secretary of Health and Human Services
may waive compliance with the benefit requirements of title XVIII
of such Act (42 U.S.C. 1395 et seq.), insofar as is necessary for
a thorough evaluation of the alternative methods under consider-
ation. No such project shall be actually placed in operation unless
at least 90 days prior thereto a written report, prepared for purposes
of notification and information only and containing a full and com-
plete description thereof, has been transmitted by the Commissioner
to the Committee on Ways and Means of the House of Representa-
tives and to the Committee on Finance of the Senate. Periodic
reports on the progress of such projects shall be submitted by
the Commissioner to such committees. When appropriate, such
reports shall include detailed recommendations for changes in
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 the enactment of this Act, and annually thereafter, the Commis-
sioner of Social Security 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
that the Commissioner of Social Security may consider appropriate.
(e) FINAL REPORT.—The Commissioner of Social Security shall
submit to the Congress a final report with respect to all demonstra-
tion projects carried out under this section not later than 1 year
after their completion.
(f ) EXPENDITURES.—Expenditures made for demonstration
projects under this section shall be made from the Federal Disability
Insurance Trust Fund and the Federal Old-Age and Survivors Insur-
ance Trust Fund, as determined appropriate by the Commissioner
of Social Security, 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 advance in appropriation
Acts.
SEC. 303. STUDIES AND REPORTS.
(a) STUDY
BY GENERAL ACCOUNTING OFFICE
OF EXISTING
DISABILITY-RELATED EMPLOYMENT INCENTIVES.—
H. R. 1180—45
(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-related employment incentives under the
Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et
seq.) 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.
(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 Rep-
resentatives and the Committee on Finance of the Senate a
written report 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 General determines are appro-
priate.
(b) STUDY
BY GENERAL ACCOUNTING OFFICE
OF EXISTING
COORDINATION OF THE DI AND SSI PROGRAMS AS THEY RELATE
TO INDIVIDUALS ENTERING
OR LEAVING CONCURRENT ENTITLE-
MENT.—
(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 Social Security Act (42 U.S.C. 401 et seq.) and
the supplemental security income program under title XVI
of such Act (42 U.S.C. 1381 et seq.), 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 (42 U.S.C. 1395 et seq., 1396 et seq.).
(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 Rep-
resentatives and the Committee on Finance of the Senate a
written report 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 General determines are appro-
priate.
(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 the
enactment of this Act, the Comptroller General of the United
States shall undertake a study of the substantial gainful
activity level applicable as of that date to recipients of benefits
under section 223 of the Social Security Act (42 U.S.C. 423)
and under section 202 of such Act (42 U.S.C. 402) on the
basis of a recipient having a disability, and the effect of such
level as a disincentive for those recipients to return to work.
In the study, the Comptroller General also shall address the
merits of increasing the substantial gainful activity level
H. R. 1180—46
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 the
enactment of this Act, the Comptroller General shall transmit
to the Committee on Ways and Means of the House of Rep-
resentatives and the Committee on Finance of the Senate a
written report 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 General determines are appro-
priate.
(d) REPORT
ON DISREGARDS UNDER
THE DI AND SSI PRO-
GRAMS.—Not later than 90 days after the date of the enactment
of this Act, the Commissioner of Social Security shall submit to
the Committee on Ways and Means of the House of Representatives
and the Committee on Finance of the Senate a report that—
(1) identifies all income, assets, and resource disregards
(imposed under statutory or regulatory authority) that are
applicable to individuals receiving benefits under title II or
XVI of the Social Security Act (42 U.S.C. 401 et seq., 1381
et seq.);
(2) with respect to each such disregard—
(A) specifies the most recent statutory or regulatory
modification of the disregard; and
(B) recommends whether further statutory or regu-
latory modification of the disregard would be appropriate;
and
(3) with respect to the disregard described in section
1612(b)(7) of such Act (42 U.S.C. 1382a(b)(7)) (relating to
grants, scholarships, or fellowships received for use in paying
the cost of tuition and fees at any educational (including tech-
nical or vocational education) institution)—
(A) identifies the number of individuals receiving bene-
fits 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 educational
(including technical or vocational education) institution
excluded from their income in accordance with that section;
(B) recommends whether the age at which such grants,
scholarships, or fellowships are excluded from income for
purposes of determining eligibility under title XVI of such
Act (42 U.S.C. 1381 et seq.) should be increased to age
25; and
(C) recommends whether such disregard should be
expanded to include any such grant, scholarship, or fellow-
ship received for use in paying the cost of room and board
at any such institution.
(e) STUDY BY THE GENERAL ACCOUNTING OFFICE OF SOCIAL
SECURITY ADMINISTRATION’S DISABILITY INSURANCE PROGRAM DEM-
ONSTRATION AUTHORITY.—
(1) STUDY.—As soon as practicable after the date of the
enactment of this Act, the Comptroller General of the United
States shall undertake a study to assess the results of the
Social Security Administration’s efforts to conduct disability
demonstrations authorized under prior law as well as under
H. R. 1180—47
section 234 of the Social Security Act (as added by section
301 of this Act).
(2) REPORT.—Not later than 5 years after the date of the
enactment of this Act, the Comptroller General shall transmit
to the Committee on Ways and Means of the House of Rep-
resentatives and the Committee on Finance of the Senate a
written report presenting the results of the Comptroller Gen-
eral’s study conducted pursuant to this section, together with
a recommendation as to whether the demonstration authority
authorized under section 234 of the Social Security Act (as
added by section 301 of this Act) should be made permanent.
TITLE IV—MISCELLANEOUS AND
TECHNICAL AMENDMENTS
SEC. 401. TECHNICAL AMENDMENTS RELATING TO DRUG ADDICTS AND
ALCOHOLICS.
(a) CLARIFICATION RELATING TO THE EFFECTIVE DATE OF THE
DENIAL OF SOCIAL SECURITY DISABILITY BENEFITS TO DRUG ADDICTS
AND ALCOHOLICS.—Section 105(a)(5) of the Contract with America
Advancement Act of 1996 (42 U.S.C. 405 note) is amended—
(1) in subparagraph (A), by striking ‘‘by the Commissioner
of Social Security’’ and ‘‘by the Commissioner’’; and
(2) by adding at the end the following new subparagraph:
‘‘(D) For purposes of this paragraph, an individual’s
claim, with respect to benefits under title II 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 either adminis-
trative or judicial review with respect to such claim;
or
‘‘(ii) there is pending, with respect to such claim,
a readjudication by the Commissioner of Social Secu-
rity pursuant to relief in a class action or implementa-
tion 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 redeter-
mination before the date prescribed in subparagraph (C),
the Commissioner shall perform such entitlement redeter-
mination in lieu of a continuing disability review whenever
the Commissioner determines that the individual’s entitle-
ment is subject to redetermination based on the preceding
provisions of this paragraph, and the provisions of section
223(f ) shall not apply to such redetermination.’’.
(b) CORRECTION
TO EFFECTIVE DATE
OF PROVISIONS CON-
CERNING REPRESENTATIVE PAYEES AND TREATMENT REFERRALS OF
SOCIAL SECURITY BENEFICIARIES WHO ARE DRUG ADDICTS
AND
ALCOHOLICS.—Section 105(a)(5)(B) of the Contract with America
Advancement Act of 1996 (42 U.S.C. 405 note) is amended to
read as follows:
‘‘(B) The amendments made by paragraphs (2) and
(3) shall take effect on July 1, 1996, with respect to any
individual—
H. R. 1180—48
‘‘(i) whose claim for benefits is finally adjudicated
on or after the date of the enactment of this Act;
or
‘‘(ii) whose entitlement to benefits is based upon
an entitlement redetermination made pursuant to
subparagraph (C).’’.
(c) EFFECTIVE DATES.—The amendments made by this section
shall take effect as if included in the enactment of section 105
of the Contract with America Advancement Act of 1996 (Public
Law 104–121; 110 Stat. 852 et seq.).
SEC. 402. TREATMENT OF PRISONERS.
(a) IMPLEMENTATION
OF PROHIBITION AGAINST PAYMENT
OF
TITLE II BENEFITS TO PRISONERS.—
(1) IN GENERAL.—Section 202(x)(3) of the Social Security
Act (42 U.S.C. 402(x)(3)) is amended—
(A) by inserting ‘‘(A)’’ after ‘‘(3)’’; and
(B) by adding at the end the following new subpara-
graph:
‘‘(B)(i) The Commissioner shall enter into an agreement under
this subparagraph with any interested State or local institution
comprising a jail, prison, penal institution, or correctional facility,
or comprising any other institution a purpose of which is to confine
individuals as described in paragraph (1)(A)(ii). Under such
agreement—
‘‘(I) the institution shall provide to the Commissioner, on
a monthly basis and in a manner specified by the Commis-
sioner, the names, Social Security 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 other provisions of this title; and
‘‘(II) the Commissioner shall pay to the institution, with
respect to information described in subclause (I) concerning
each individual who is confined therein as described in para-
graph (1)(A), who receives a benefit under this title for the
month preceding the first month of such confinement, and
whose benefit under this title is determined by the Commis-
sioner to be not payable by reason of confinement based on
the information provided by the institution, $400 (subject to
reduction under clause (ii)) if the institution 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 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 indi-
vidual under an agreement entered into under section 1611(e)(1)(I).
‘‘(iii) There are authorized to be transferred from the Federal
Old-Age and Survivors Insurance Trust Fund and the Federal Dis-
ability Insurance Trust Fund, as appropriate, such sums as may
be necessary to enable the Commissioner to make payments to
institutions required by clause (i)(II).
H. R. 1180—49
‘‘(iv) The Commissioner shall maintain, and shall provide on
a reimbursable basis, information obtained pursuant to agreements
entered into under this paragraph to any agency administering
a Federal or federally-assisted cash, food, or medical assistance
program for eligibility and other administrative purposes under
such program.’’.
(2) CONFORMING
AMENDMENTS
TO
THE
PRIVACY
ACT.—
Section 552a(a)(8)(B) of title 5, United States Code, is
amended—
(A) in clause (vi), by striking ‘‘or’’ at the end;
(B) in clause (vii), by adding ‘‘or’’ at the end; and
(C) by adding at the end the following new clause:
‘‘(viii) matches performed pursuant to section
202(x)(3) or 1611(e)(1) of the Social Security Act (42
U.S.C. 402(x)(3), 1382(e)(1));’’.
(3) CONFORMING AMENDMENTS TO TITLE XVI.—
(A) Section 1611(e)(1)(I)(i)(I) of the Social Security Act
(42 U.S.C. 1382(e)(1)(I)(i)(I)) is amended by striking ‘‘; and’’
and inserting ‘‘and the other provisions of this title; and’’.
(B) Section 1611(e)(1)(I)(ii)(II) of such Act (42 U.S.C.
1382(e)(1)(I)(ii)(II)) is amended by striking ‘‘is authorized
to provide, on a reimbursable basis,’’ and inserting ‘‘shall
maintain, and shall provide on a reimbursable basis,’’.
(4) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to individuals whose period of confinement
in an institution commences on or after the first day of the
fourth month beginning after the month in which this Act
is enacted.
(b) ELIMINATION OF TITLE II REQUIREMENT THAT CONFINEMENT
STEM FROM CRIME PUNISHABLE BY IMPRISONMENT FOR MORE THAN
1 YEAR.—
(1) IN GENERAL.—Section 202(x)(1)(A) of the Social Security
Act (42 U.S.C. 402(x)(1)(A)) is amended—
(A) in the matter preceding clause (i), by striking
‘‘during which’’ and inserting ‘‘ending with or during or
beginning with or during a period of more than 30 days
throughout all of which’’;
(B) in clause (i), by striking ‘‘an offense punishable
by imprisonment for more than 1 year (regardless of the
actual sentence imposed)’’ and inserting ‘‘a criminal
offense’’; and
(C) in clause (ii)(I), by striking ‘‘an offense punishable
by imprisonment for more than 1 year’’ and inserting ‘‘a
criminal offense’’.
(2) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to individuals whose period of confinement
in an institution commences on or after the first day of the
fourth month beginning after the month in which this Act
is enacted.
(c) CONFORMING TITLE XVI AMENDMENTS.—
(1) FIFTY PERCENT REDUCTION IN TITLE XVI PAYMENT IN
CASE
INVOLVING
COMPARABLE
TITLE
II
PAYMENT.—Section
1611(e)(1)(I) of the Social Security Act (42 U.S.C. 1382(e)(1)(I))
is amended—
(A) in clause (i)(II), by inserting ‘‘(subject to reduction
under clause (ii))’’ after ‘‘$400’’ and after ‘‘$200’’;
H. R. 1180—50
(B) by redesignating clauses (ii) and (iii) as clauses
(iii) and (iv) respectively; and
(C) by inserting after clause (i) the following 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 indi-
vidual under an agreement entered into under section 202(x)(3)(B).’’.
(2) EXPANSION OF CATEGORIES OF INSTITUTIONS 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 ‘‘institution’’
and all that follows through ‘‘section 202(x)(1)(A),’’ and inserting
‘‘institution comprising a jail, prison, penal institution, or
correctional facility, or with any other interested State or local
institution a purpose of which is to confine individuals as
described in section 202(x)(1)(A)(ii),’’.
(3) ELIMINATION
OF
OVERLY
BROAD
EXEMPTION.—Section
1611(e)(1)(I)(iii) of such Act (42 U.S.C. 1382(e)(1)(I)(iii)) (as
redesignated by paragraph (1)(B)) is amended further—
(A) by striking ‘‘(I) The provisions’’ and all that follows
through ‘‘(II)’’; and
(B) by striking ‘‘eligibility purposes’’ and inserting
‘‘eligibility and other administrative purposes under such
program’’.
(4) EFFECTIVE DATE.—The amendments made by this sub-
section shall take effect as if included in the enactment of
section 203(a) of the Personal Responsibility and Work Oppor-
tunity Reconciliation Act of 1996 (Public Law 104–193; 110
Stat. 2186). The reference to section 202(x)(1)(A)(ii) of the Social
Security Act in section 1611(e)(1)(I)(i) of the Social Security
Act, as amended by paragraph (2) of this subsection, shall
be deemed a reference to such section 202(x)(1)(A)(ii) of such
Act as amended by subsection (b)(1)(C) of this section.
(d) CONTINUED
DENIAL
OF
BENEFITS
TO
SEX
OFFENDERS
REMAINING CONFINED TO PUBLIC INSTITUTIONS UPON COMPLETION
OF PRISON TERM.—
(1) IN GENERAL.—Section 202(x)(1)(A) of the Social Security
Act (42 U.S.C. 402(x)(1)(A)) is amended—
(A) in clause (i), by striking ‘‘or’’ at the end;
(B) in clause (ii)(IV), by striking the period and
inserting ‘‘, or’’; and
(C) by adding at the end the following new clause:
‘‘(iii) immediately upon completion of confinement as
described in clause (i) pursuant to conviction of a criminal
offense an element of which is sexual activity, is confined
by court order in an institution 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 sub-
section shall apply with respect to benefits for months ending
after the date of the enactment of this Act.
H. R. 1180—51
SEC. 403. REVOCATION BY MEMBERS OF THE CLERGY OF EXEMPTION
FROM SOCIAL SECURITY COVERAGE.
(a) IN GENERAL.—Notwithstanding section 1402(e)(4) of the
Internal Revenue Code of 1986, any exemption which has been
received under section 1402(e)(1) of such Code by a duly ordained,
commissioned, or licensed minister of a church, a member of a
religious order, or a Christian Science practitioner, and which is
effective for the taxable year in which this Act is enacted, may
be revoked by filing an application therefor (in such form and
manner, and with such official, as may be prescribed by the
Commissioner of Internal Revenue), if such application is filed
no later than the due date of the Federal income tax return
(including any extension thereof ) for the applicant’s second taxable
year beginning after December 31, 1999. 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 (42 U.S.C.
401 et seq.)), as specified in the application, either with respect
to the applicant’s first taxable year beginning after December 31,
1999, or with respect to the applicant’s second taxable year begin-
ning after such date, and for all succeeding taxable 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 paragraphs (4) and (5) of section 1402(c))
except for the exemption under section 1402(e)(1) of such Code.
(b) EFFECTIVE DATE.—Subsection (a) shall apply with respect
to service performed (to the extent specified in such subsection)
in taxable years beginning after December 31, 1999, and with
respect to monthly insurance benefits payable under title II 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 effec-
tive (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. 
404. 
ADDITIONAL 
TECHNICAL 
AMENDMENT 
RELATING 
TO
COOPERATIVE 
RESEARCH 
OR 
DEMONSTRATION
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 striking ‘‘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 enactment of the Social
Security Independence and Program Improvements Act of 1994
(Public Law 103–296; 108 Stat. 1464).
H. R. 1180—67
(ii) advance pricing agreements executed cumula-
tively to date and during such calendar year;
(iii) renewals of advance pricing agreements
issued;
(iv) pending requests for advance pricing agree-
ments;
(v) pending renewals of advance pricing agree-
ments;
(vi) for each of the items in clauses (ii) through
(v), the number that are unilateral, bilateral, and
multilateral, respectively;
(vii) advance pricing agreements revoked or can-
celed, and the number of withdrawals from the advance
pricing agreement program; and
(viii) advance pricing agreements finalized or
renewed by industry.
(D) General descriptions of—
(i) the nature of the relationships between the
related organizations, trades, or businesses covered by
advance pricing agreements;
(ii) the covered transactions and the business func-
tions performed and risks assumed by such organiza-
tions, trades, or businesses;
(iii) the related organizations, trades, or businesses
whose prices or results are tested to determine compli-
ance with transfer pricing methodologies prescribed
in advance pricing agreements;
(iv) methodologies used to evaluate tested parties
and transactions and the circumstances leading to the
use of those methodologies;
(v) critical assumptions made and sources of
comparables used;
(vi) comparable selection criteria and the rationale
used in determining such criteria;
(vii) the nature of adjustments to comparables or
tested parties;
(viii) the nature of any ranges agreed to, including
information regarding when no range was used and
why, when interquartile ranges were used, and when
there was a statistical narrowing of the comparables;
(ix) adjustment mechanisms provided to rectify
results that fall outside of the agreed upon advance
pricing agreement range;
(x) the various term lengths for advance pricing
agreements, including rollback years, and the number
of advance pricing agreements with each such term
length;
(xi) the nature of documentation required; and
(xii) approaches for sharing of currency or other
risks.
(E) Statistics regarding the amount of time taken to
complete new and renewal advance pricing agreements.
(F) A detailed description of the Secretary of the Treas-
ury’s efforts to ensure compliance with existing advance
pricing agreements.
(3) CONFIDENTIALITY.—The reports required by this sub-
section shall be treated as authorized by the Internal Revenue
H. R. 1180—78
annuity, or endowment contract if any direct or indirect
beneficiary under such contract is the transferor, any
member of the transferor’s family, or any other person
(other than an organization described in subsection (c))
designated by the transferor.
‘‘(C) APPLICATION TO CHARITABLE REMAINDER TRUSTS.—
In the case of a transfer to a trust referred to in subpara-
graph (E), references in subparagraphs (A) and (F) to an
organization described in subsection (c) shall be treated
as a reference to such trust.
‘‘(D) EXCEPTION FOR CERTAIN ANNUITY CONTRACTS.—
If, in connection with a transfer to or for the use of an
organization described in subsection (c), such organization
incurs an obligation to pay a charitable gift annuity (as
defined in section 501(m)) and such organization purchases
any annuity contract to fund such obligation, persons
receiving payments under the charitable gift annuity shall
not be treated for purposes of subparagraph (B) as indirect
beneficiaries under such contract if—
‘‘(i) such organization possesses all of the incidents
of ownership under such contract,
‘‘(ii) such organization is entitled to all the pay-
ments under such contract, and
‘‘(iii) the timing and amount of payments under
such contract are substantially the same as the timing
and amount of payments to each such person under
such obligation (as such obligation is in effect at the
time of such transfer).
‘‘(E) EXCEPTION
FOR
CERTAIN
CONTRACTS
HELD
BY
CHARITABLE
REMAINDER
TRUSTS.—A person shall not be
treated for purposes of subparagraph (B) as an indirect
beneficiary under any life insurance, annuity, or endow-
ment contract held by a charitable remainder annuity trust
or a charitable remainder unitrust (as defined in section
664(d)) solely by reason of being entitled to any payment
referred to in paragraph (1)(A) or (2)(A) of section 664(d)
if—
‘‘(i) such trust possesses all of the incidents of
ownership under such contract, and
‘‘(ii) such trust is entitled to all the payments
under such contract.
‘‘(F) EXCISE TAX ON PREMIUMS PAID.—
‘‘(i) IN GENERAL.—There is hereby imposed on any
organization described in subsection (c) an excise tax
equal to the premiums paid by such organization on
any life insurance, annuity, or endowment contract
if the payment of premiums on such contract is in
connection with a transfer for which a deduction is
not allowable under subparagraph (A), determined
without regard to when such transfer is made.
‘‘(ii) PAYMENTS BY OTHER PERSONS.—For purposes
of clause (i), payments made by any other person
pursuant to an understanding or expectation referred
to in subparagraph (A) shall be treated as made by
the organization.