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Senate and House of Representatives Proposed Legislation on establishing Ticket to Work and Self-Sufficiency Program[S. 331 Work Incentives Improvement Act of 1999; H.R. 1180 Work Incentives Improvement Act of 1999]
Thursday, January 28, 1999 By Mr. JEFFORDS (for himself, Mr. Kennedy, Mr. Roth, Mr. Moynihan, Mr. Chafee, Mr. Grassley, Mr. Hatch, Mr. Murkowski, Mr. Breaux, Mr. Graham, Mr. Kerrey, Mr. Robb, Mr. Rockefeller, Mr. Bingaman, Mrs. Boxer, Mr. Cleland, Ms. Collins, Mr. Daschle, Mr. DeWine, Mr. Dodd, Mr. Durbin, Mr. Enzi, Mrs. Feinstein, Mr. Grams, Mr. Harkin, Mr. Hollings, Mr. Hutchinson, Mr. Inouye, Mr. Johnson, Mr. Kerry, Ms. Mikulski, Mrs. Murray, Mr. Reed, Mr. Reid, Mr. Sarbanes, Ms. Snowe, Mr. Stevens, Mr. Torricelli, and Mr. Wellstone): S. 331. A bill 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 individuals with meaningful opportunities to work, and for other purposes; to the Committee on Finance.
Mr. JEFFORDS: Mr. President, today Senators Kennedy, Roth, Moynihan, and I, joined by many of our colleagues are introducing the Work Incentives Improvement Act of 1999. The reason for this broad bipartisan effort is both compelling and simple. Currently, individuals with disabilities must choose between working or getting health care. Such a choice is absurd. But, current federal law forces individuals with disabilities to make that choice. Our legislation addresses this fundamental flaw. The federal government helps individuals with significant disabilities, who earn under $500 a month. Individuals, who have less than $2,000 in assets and have not paid into Social Security, receive Supplemental Security Income (SSI) cash payments and access to Medicaid. Individuals, who have worked and paid into Social Security, receive Social Security Disability Insurance (SSDI) cash payments and access to Medicare. Yet, the current system offers no incentive for SSI and SSDI recipients to work to their full potential, to be taxpayers, to contribute to their well-being and that of their families. The facts bear out this assertion. Less than one half of one percent of the 7.5 million individuals on the Social Security disability rolls leave them. Do these individuals really want to work? The answer is a resounding, "Yes." Over the last 10 years, national surveys consistently confirm that people with disabilities of working age want to work, but only about one-third are working. Are the numbers low because of discrimination or because of lack of skills? Congress has tackled these issues. We passed the Americans with Disabilities Act in 1990. It is against the law to discriminate against an individual on the basis of disability in employment as well as in all other contexts. The Individuals with Disabilities Education Act, the Rehabilitation Act, and most recently the Workforce Investment Act of 1998 contribute to the access of individuals with disabilities to the education and training they need to become qualified workers. However, protection against discrimination is not enough. Access to education and training is not enough. Colleagues, the biggest remaining barrier is health insurance. Individuals with significant disabilities who meet the rigorous eligibility criteria of the Social Security disability programs cannot often get reasonably priced, appropriate health insurance coverage from the private sector. These individuals can only get health insurance from the government, and the government gives it to them only if they stay home, or at best, work a minimal amount. It is difficult to measure fully the effect of having a job on an individual's life. It has a positive impact on a person's identity and sense of self-worth. Having a job results in satisfaction associated with supporting oneself and one's family or at least not being a burden on it. If only one percent of the 7.5 million SSI and SSDI recipients go to work and forgo cash payments from the Social Security Administration (SSA), this would result in a cash savings of $3.5 billion to the federal Treasury over the lifetimes of these individuals. If we factor in the income taxes these individuals would pay, their lack of need for food stamps, subsidized housing, and other forms of assistance, that $3.5 billion dollar figure would be even higher. Beyond the individual, there is another factor. Recently we learned that our unemployment rate, 4.3 percent, is the lowest it has been since 1956. Our economy, to stay vibrant and strong, needs access to a qualified and enthusiastic pool of potential workers fro which to draw. SSI and SSDI recipients are an untapped resource. Many of the jobs that currently go unfilled, in the service sector and technology industry, are the very jobs that many SSI and SSDI recipients are ready and willing to fill, if only they could have access to health care. The Work Incentives Improvement Act of 1999 is targeted, fiscally responsible legislation. It would enable individuals with significant disabilities to enter the work force for the first time, reenter the work force, or avoid leaving it in the first place. These individuals would need not worry about losing their health care if they choose to work a forty hour week, to put in overtime, to go for a career advancement or change with more income potential. Under current law, a poor individual with a disability who has not worked and not paid into Social Security, who meets rigorous criteria, receives monthly SSI payments. Once eligible for SSI cash payments, these individuals have access to Medicaid. In some states these individuals may have coverage of personal assistance services and prescription drugs through Medicaid. An SSI recipient who chooses to earn income, and then exceeds his or her state's threshold for earned income for an SSI beneficiary, loses SSI cash payments and access to Medicaid. Also under current law, an individual who has worked and paid into Social Security, has a disability, and meets rigorous criteria, receives SSDI payments. After 24 months, these individuals have access to Medicare. Medicare does not cover the cost of personal assistance services or prescription drugs, items an individual with a disability may need to work at all. To access coverage of these items, an individual must spend-down his or her resources until he or she has under $2,000. Then, the individual can become eligible for coverage of these items through Medicaid in states where they are offered. An SSDI recipient who chooses to work and earns $500 monthly in a 12 month period, loses SSDI cash payments. SSDI beneficiaries continue to receive Medicare coverage after returning to work throughout a 39-month extended period of eligibility, but afterwards must pay the full Medicare Part A premium, which is over $300 monthly. The bill would allow states to expand Medicaid coverage to workers with disabilities. These options build on previous reforms including a recent provision enacted in the Balanced Budget Act of 1997 (BBA). The BBA provision permitted states to offer a Medicaid buy-in to those individuals with incomes below 250 percent of poverty who would be eligible for SSI disability benefits but for their income. The first option in our legislation would build on the BBA provision. States may elect to offer a Medicaid buy-in to people with disabilities who work and have earnings above 250 percent of poverty. Even so, participating States may also set limits on an individual's unearned income, assets, and resources and may require cost-sharing and premiums on a sliding scale up to a full premium. The second option in our legislation would allow states that elect to do so to cover individuals who continue to have a severe medically determinable impairment but lose eligibility for SSI or SSDI because of medical improvement. Although medical improvement for individuals with disabilities is inextricably linked to ongoing interventions made possible through insurance coverage, under current law improvement can jeopardize continued eligibility for that coverage. The legislation requires that states not supplant existing state-only spending with Medicaid funding under either of these options and maintain current spending levels on eligible populations. A state which elects to implement the first option or the first and second options would receive a grant to support the design, establishment and operation of infrastructures to support working individuals with disabilities. A total of $150 million would be available for five years, and annual amounts would be increased at the rate of inflation from 2004 through 2009. In 2009, the Secretary of Health and Human Services would recommend whether the program is still needed. The bill includes a ten-year trial program that would permit SSDI beneficiaries to continue to receive Medicare coverage when they return to work. This option in effect extends the current 39-month extended period of eligibility. The legislation includes a time-limited demonstration program that would allow states to extend Medicaid coverage to workers who have a disability which, without access to health care, would become severe enough to quality them for SSI or SSDI. This demonstration would provide new information on the cost effectiveness of early health care intervention in keeping people with disabilities from becoming too disabled to work. Funding of $300 million would be available for the demonstration, which would sunset at the end of FY 2004. The legislation eliminates other programmatic disincentives. It would encourage SSDI and SSi beneficiaries to return to work by providing assurance that cash benefits remain available if employment proves unsuccessful. Specifically, the legislation would prohibit using employment as the sole basis for scheduling a continuing disability review and would expedite eligibility determinations for those individuals that need to return to SSDI benefits after losing such benefits because of work. We estimate the total cost of these health care-related provisions to be a total of $1.2 billion over five years. Recognizing that some SSI and SSDI recipients will need training and job placement assistance and that they seek choices related to these activities, in our bill we include provisions modeled on Senator Bunning's legislation that passed the House last year. These "ticket to work and self-sufficiency" provisions would give SSI and SSDI beneficiaries more choices in where to obtain vocational rehabilitation and employment services and would increase incentives to public and participating private providers serving these individuals. The "ticket" provisions would create a new payment system for employment services to SSI and SSDI beneficiaries the result in employment. For each beneficiary a provider assists, the provider would be reimbursed with a portion of benefits savings to the federal government that would occur when the beneficiary earns more than the current law Substantial Gainful Activity (SGA) standard of $500 per month. These ticket provisions have been estimated to cost a total of $17 million over five years. To assist individuals with disabilities to understand the myriad options available to them and their interrelationship, the legislation would create a community-based outreach program to provide accurate information on work incentives programs to individuals with disabilities, and a state grant program to help people cut red tape to access work incentives. For the community-based work incentives outreach program, up to $23 million per year would be provided for grants to states or private organizations. SSA would have the authority to provide state grants ($7 million annually) to provide help to beneficiaries in accessing the "ticket to work" and other work incentives programs. The legislation would reauthorize SSA's demonstration authority which expired June 10, 1996. In addition, through mandated demonstration projects SSA is to assess the effect of a gradual reduction in cash benefits a earnings increase. Under current law, SSI recipients have access to a gradual reduction in their cash payments, but SSDI recipients do not. SSDI recipients lose cash payments immediately after earning $500 monthly in a 12 month trial work period. SSDI recipients participating in the demonstration would lose one SSDI dollar for every $2 earned. Finally, the legislation directs the General Accounting Office (GAO) to study three issues: (1) tax credits and other disability-related employment incentives under the Americans with Disabilities Act of 1990; (2) the coordination of SSI and SSDI benefits; and (3) the effects of the Substantial Gainful Activity (currently $500 monthly) standard on work incentives. These provisions have been estimated to cost a total of $55 million over five years. This legislation represents two years of work. It reflects what individuals with disabilities say they need. It was shaped by input across the philosophical spectrum. It was endorsed by the President in this State of the Union Address. It is an opportunity to bring responsible change to federal policy and eliminate a perverse dilemma for many Americans with disabilities--if you don't work, you get health care; if you do work, you don't. This legislation is a vital link that will make the American dream a reality for many Americans with disabilities. Let's work together to make the Work Incentives Improvement Act of 1999 the first significant legislation enacted by the 106th Congress. Ms. COLLINS: Mr. President, I am pleased to join Senators Jeffords, Kennedy, Roth, and Moynihan in introducing this historic, bipartisan initiative that will help tear down the barriers that prevent Americans with disabilities who want to work from reaching their full potential and achieving economic independence. Eight million Americans receive more than $50 billion a year in cash disability benefits under the Supplemental Security Income and Social Security Disability programs. While surveys show that the overwhelming majority of adults with disabilities want to work, fewer than \1/2\ of 1 percent of them actually do. Advances in medicine and technology coupled with tougher civil rights laws have made it possible for more and more people with physical and mental disabilities to enter the workforce. These are people who genuinely want to work. They have the skills and talents necessary to be productive members of the workforce. But they face a Catch-22. If they leave the disability rolls for a job, they risk losing the Medicare and Medicaid benefits that made it possible for them to enter the workforce in the first place. Moreover, many of these individuals' very lives depend on the prescription drugs, technology, personal assistance services, and medical care they receive. Mr. President, no one should have to make a choice between a job and health care. The legislation we are introducing today will create and fund new options for States to encourage them to allow people with disabilities who enter the workforce to buy into the Medicaid program, so they can continue to receive the prescription drugs, personal assistance services, and medical care upon which they depend. It will also allow workers leaving the social Security Disability Insurance program to extend their Medicare coverage for ten years. This is tremendously important since many people returning to work after having been on SSDI either work part time and are therefore not eligible for employer-based insurance, or they work in jobs that do not offer health insurance. Allowing these disabled individuals to maintain their Medicare coverage will serve as a tremendous incentive for them to return to the workforce. Other provisions of the legislation we are introducing today incorporate a more "user-friendly" approach in programs providing job training and placement assistance to individuals with disabilities who wants to work. Our bill gives disabled SSI and SSDI beneficiaries greater consumer choice by creating a "ticket" that enables them to choose whether they want to go to a public or private provider of vocational rehabilitation services. The bill also provides grants to States and organizations to help connect people with disabilities with appropriate services, and funds demonstrations and studies to better understand policies that will encourage and enable work. Mr. President, the legislation we are introducing today is an investment in human potential that promises tremendous return. By ensuring that Americans with disabilities have access to affordable health insurance, we are removing the major barrier between them and the workplace. The Work Incentives Improvement Act of 1999 will both encourage and enable Americans with disabilities to be full participants in our nation's workforce and growing economy, and I urge all of my colleagues to join me in cosponsoring this important legislation. Mr. KENNEDY: Mr. President, it is an honor to join my colleagues in introducing the Work Incentives Improvement Act to provide affordable and accessible health care for persons with disabilities so they can work and live independently. Despite the extraordinary growth and prosperity the country is now enjoying, people with disabilities continue to struggle to live independently and become fully contributing members of their communities. We have made significant progress through special education programs that open new horizons for excellence in learning, and through rehabilitation programs that develop practical independent living skills. Too often, however, the goal of independence is still out of reach. We need to do more to see that the benefits of our prosperous economy are truly available to all Americans, including those with disabilities. Disabled children and adults deserve access to the benefits and support they need to achieve their full potential. Large numbers of the 54 million disabled Americans have the capacity to work and become productive citizens. But they are unable to do so because of the unnecessary barriers they face. For too long, people with disabilities have suffered from unfair penalties if they go to work. They are in danger of losing their cash benefits if they accept a paying job. They are in danger of losing the medical coverage, which may well mean the difference between life and death. Too often, they face a harsh choice between eating a decent meal and buying their needed medication. The bipartisan legislation we are introducing today will help to remove these unfair barriers. It will make health insurance coverage more widely available, through opportunities to buy-in to Medicare and Medicaid at an affordable rate. It will phase out the loss of cash benefits as income rises--instead of the unfair sudden cut-off that so many workers with disabilities face today. It will bring greater access for people with disabilities to the services they need in order to become successfully employed. Our goal is to restructure and improve existing disability programs so that they do more to encourage and support every disabled person's dream to work and live independently, and be productive and contributing members of their community. That goal should be the birthright of all Americans--and when we say all, we mean all. This bill is the right thing to do, it is the cost effective thing to do, and now is the time to do it. For too long, our fellow disabled citizens have been left out and left behind. A new and brighter day is on the horizon for Americans with disabilities, and together we can make it a reality. I especially commend Senator Jeffords, Senator Roth and Senator Moynihan for their impressive leadership on this issue. We look forward to working with all members of Congress to pass this landmark legislation that will give disabled persons across the country a better opportunity to fulfill their dreams and participate fully in the social and economic mainstream of the nation. Mr. KERREY: Mr. President, it is with pleasure that I join Senators Moynihan, Roth, Kennedy and Jeffords on their significant initiative to expand work opportunities for Americans with disabilities. As Americans, we value the opportunity to support ourselves and our families to the best of our abilities. In fact, we refer to this right and this responsibility as the American dream. But today, millions of Americans who want to work remain on various forms of public assistance, because they can't access the supports they need to begin and continue working. People with disabilities face unique barriers to self-sufficiency. Many of them need certain types of health services, such as home health care and personal care services, in order to work--yet these services are rarely available under employer-sponsored health insurance. Many of them find private health insurance unavailable or unaffordable. Some need vocational rehabilitation services and help finding employment. Others need assistive technology in order to do their job. Currently, health care coverage and other services are linked to two cash programs--Social Security Disability (SSDI) and Supplemental Security Income. So people with disabilities must choose whether they want to reach self-sufficiency and risk losing their health coverage and other supportive services, or retain their health insurance but remain dependent on these safety-net programs. At the same time, without personal attendants or other supportive services, they may not be able to work in the first place, or no longer be able to work if their health status is threatened by the loss of the services they can access through health coverage. I do not believe that people who wish to work and support themselves should face this kind of agonizing choice and take these types of risks. However, we can change this Catch-22. The Work Incentives Improvement Act will make several important changes. Most significantly, it will provide new options for Medicaid and Medicare coverage for disabled individuals who enter the workforce, and expand access to employment services for disabled individuals who are building their employment skills. By enabling workers with disabilities to buy-in to the Medicaid program, this legislation will permit Americans with disabilities to enter the workforce without worrying about losing the prescription drug coverage, personal care services, and other health care services they need to work in the first place. It also allows States to establish sliding-scale premiums for workers with higher incomes, therefore ensuring that as workers' income increases, they maintain their health coverage but are less financially dependent on public programs. This proposal will also allow States to continue covering people whose health condition has improved through treatment made possible through Medicaid coverage. Finally, through a ten-year demonstration, the Work Incentives Improvement Act will determine whether permitting SSDI beneficiaries to continue their Medicare coverage is a cost-effective strategy for providing health insurance to individuals who lose SSDI when they return to work. This legislation will also reduce barriers to employment for Americans with disabilities by providing new mechanisms for these individuals to receive the vocational rehabilitation and employment services they need from the providers they choose. In addition, it will encourage SSDI and SSI beneficiaries to develop their skills and venture into the workplace by providing a new assurance that their cash benefits will remain available, if necessary. These individuals may still lose their cash benefits, depending on their working income, but they can be assured that their SSDI and SSI eligibility application would be expedited if their work experience ultimately proves unsuccessful. As we look towards the next century, we know that America's economic strength and sense of national community are dependent on the contributions of each and every American. We need to take the necessary steps to ensure that all Americans will have a chance to enjoy the American dream. Americans with disabilities have the same dreams as the rest of us--including a productive and rewarding working life that enables them to support their families and achieve economic self- sufficiency. We should do our best to help make these dreams a reality. Mr. MOYNIHAN: Mr. President, I join today with my colleagues Senators Roth, Kennedy and Jeffords to introduce The Work Incentives Improvement Act of 1999. This bill would address some of the barriers and disincentives that individuals enrolled in Federal disability programs face in returning to work. Many persons with disabilities need the health coverage that accompanies their eligibility for cash benefits. (Social Security Disability Insurance (SSDI) beneficiaries are also covered under Medicare. Supplemental Security Income (SSI) beneficiaries receive Medicaid coverage). Disability is determined based on an inability to sustain gainful work activity, which is measured by an earned income threshold. Under current law, as they return to work and earn income, beneficiaries lose their cash benefits and, subsequently, their health coverage. The risk of losing health benefits may deter disabled individuals from returning to work and, instead, encourage them to continue to receive cash benefits despite their ability to work. Less than one percent of SSDI and SSI beneficiaries leave the programs and return to work each year. A survey released by the National Organization on Disability showed that, currently, only 29 percent of all disabled adults are employed full-time or part-time, compared to 79 percent of the non-disabled adult population.
Our former Majority Leader and Finance Committee Chairman, Senator Bob Dole, should be commended for pioneering legislation to address work disincentives for people with disabilities. On March 19, 1986, Senator Dole introduced The Employment Opportunities for Disabled Americans Act to permanently authorize an SSI demonstration that would allow SSI beneficiaries who return to work to continue to receive cash assistance and, most importantly, continue their Medicaid coverage. At a slightly higher income level, beneficiaries returning to work would have a phased down SSI benefit while maintaining their Medicaid coverage. I was an original cosponsor of that bill, which passed the Senate by a voice vote. On November 11, 1986, President Reagan signed the bill into law. Most recently, under the Balanced Budget Act of 1997, states were given the option to provide Medicaid coverage on a sliding premium scale for disabled workers with net incomes up to 250 percent of poverty. This provision gave workers with disabilities an opportunity to buy into Medicaid coverage without leaving their job to qualify for SSI and Medicaid. These initiatives were necessary first steps, yet several disincentives still exist.
The bill we introduce today would provide additional Medicare and Medicaid options for workers with disabilities, and would encourage SSI and SSDI beneficiaries to seek vocational rehabilitative services. With regard to health coverage, the bill would allow states to lift the income and asset limits for the Medicaid buy-in program established in BBA. States would also have the option to continue Medicaid coverage for workers with disabilities that lose SSI benefits due to a medical improvement criteria. This bill would establish state demonstrations to provide the Medicaid buy-in for workers with disabilities that are not yet severe enough to end work but would be if they did not have comprehensive Medicaid coverage. In addition, as a ten-year trial period, SSDI beneficiaries who return to work may continue to receive Medicare coverage, despite losing SSDI benefits. The bill would also create incentives for vocational rehabilitation providers to assist beneficiaries in finding work and achieving sufficient income. These providers would be paid a portion of the benefits saved by the beneficiaries returning to work. The bill would create several grant programs for outreach, advocacy, and planning and assistance for beneficiaries in work incentive programs. Again, Senator Dole has offered his support for this legislation to continue the initiatives he began. My colleagues and I developed this proposal last year and would like to see it pass this year. Chairman Roth and I are committed to marking up the bill in the Committee on Finance in early spring. At that time, the Chairman's Mark will include offsets to the proposed spending. We urge all members to support this important legislation.
106th CONGRESS
1st Session
S. 331
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 individuals with meaningful
opportunities to work, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 28, 1999
Mr. Jeffords (for himself, Mr. Kennedy, Mr. Roth, Mr. Moynihan, Mr.
Chafee, Mr. Grassley, Mr. Hatch, Mr. Murkowski, Mr. Breaux, Mr. Graham,
Mr. Kerrey, Mr. Robb, Mr. Rockefeller, Mr. Bingaman, Mrs. Boxer, Mr.
Cleland, Ms. Collins, Mr. Daschle, Mr. DeWine, Mr. Dodd, Mr. Durbin,
Mr. Enzi, Mrs. Feinstein, Mr. Grams, Mr. Harkin, Mr. Hollings, Mr.
Hutchinson, Mr. Inouye, Mr. Johnson, Mr. Kerry, Ms. Mikulski, Mrs.
Murray, Mr. Reed, Mr. Reid, Mr. Sarbanes, Ms. Snowe, Mr. Stevens, Mr.
Torricelli, and Mr. Wellstone) introduced the following bill; which was
read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
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 individuals 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 ``Work Incentives
Improvement Act of 1999''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
TITLE I--EXPANDED AVAILABILITY OF HEALTH CARE SERVICES
Sec. 101. Expanding State options under medicaid for workers with
disabilities.
Sec. 102. Continuation of medicare coverage for working individuals
with disabilities.
Sec. 103. Grants to develop and establish State infrastructures to
support working individuals with
disabilities.
Sec. 104. Demonstration of coverage of workers with potentially severe
disabilities.
TITLE II--TICKET TO WORK AND SELF-SUFFICIENCY AND RELATED PROVISIONS
Subtitle A--Ticket to Work and Self-Sufficiency
Sec. 201. Establishment of the Ticket to Work and Self-Sufficiency
Program.
Sec. 202. Work Incentives Advisory Panel.
Subtitle B--Elimination of Work Disincentives
Sec. 211. Prohibition on using work activity as a basis for review of
an individual's disabled status.
Sec. 212. Expedited eligibility determinations for applications of
former long-term beneficiaries that
completed an extended period of
eligibility.
Subtitle C--Work Incentives Planning, Assistance, and Outreach
Sec. 221. Work incentives outreach program.
Sec. 222. State grants for work incentives assistance to disabled
beneficiaries.
TITLE III--DEMONSTRATION PROJECTS AND STUDIES
Sec. 301. Extension of disability insurance program demonstration
project authority.
Sec. 302. Demonstration projects providing for reductions in disability
insurance benefits based on earnings.
Sec. 303. Sense of Congress regarding additional demonstration
projects.
Sec. 304. Studies and reports.
TITLE IV--TECHNICAL AMENDMENTS
Sec. 401. Technical amendments relating to drug addicts and alcoholics.
Sec. 402. Treatment of prisoners.
Sec. 403. Revocation by members of the clergy of exemption from Social
Security coverage.
Sec. 404. Additional technical amendment relating to cooperative
research or demonstration projects under
titles II and XVI.
Sec. 405. Authorization for State to permit annual wage reports.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--Congress makes the following findings:
(1) Health care is important to all Americans.
(2) 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 economically devastating health care costs.
(3) 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 transportation to and from work, reader
services, job coaches, and related assistance) remove many of
the barriers between significant 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.
(4) 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.
(5) Individuals with disabilities who are beneficiaries
under title II or XVI of the Social Security Act (42 U.S.C. 401
et seq., 1381 et seq.) 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.
(6) Currently, less than \1/2\ of 1 percent of social
security disability insurance and supplemental security income
beneficiaries cease to receive benefits as a result of
employment.
(7) Beneficiaries have cited the lack of adequate
employment training and placement services as an additional
barrier to employment.
(8) If an additional \1/2\ of 1 percent of the current
social security disability insurance (DI) and supplemental
security income (SSI) recipients were to cease receiving
benefits as a result of employment, the savings to the Social
Security Trust Funds in cash assistance would total
$3,500,000,000 over the worklife of the individuals.
(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
employment.
(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--EXPANDED AVAILABILITY OF HEALTH CARE SERVICES
SEC. 101. EXPANDING STATE OPTIONS UNDER MEDICAID FOR WORKERS WITH
DISABILITIES.
(a) 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--
(1) in subclause (XIII), by striking ``or'' at the end;
(2) in subclause (XIV), by adding ``or'' at the end; and
(3) by adding at the end the following:
``(XV) who, but for earnings in
excess of the limit established under
section 1905(q)(2)(B), and subject to
limitations on assets, resources, or
unearned income that may be set by the
State, would be considered to be
receiving supplemental security income
(subject, notwithstanding section 1916,
to payment of premiums or other cost-
sharing charges (set on a sliding scale
based on income that the State may
determine and that may require an
individual with income that exceeds 250
percent of the income official poverty
line (as defined by the Office of
Management and Budget, and revised
annually in accordance with section
673(2) of the Omnibus Budget
Reconciliation Act of 1981) applicable
to a family of the size involved to pay
an amount equal to 100 percent of the
premium cost for providing medical
assistance to the individual), so long
as any such premiums or other cost-
sharing charges are the same as any
premiums or other cost-sharing charges
imposed for individuals described in
subclause (XVI));''.
(b) State Option To Expand Opportunities for Workers With
Disabilities To Buy Into Medicaid.--
(1) Eligibility.--Section 1902(a)(10)(A)(ii) of the Social
Security Act (42 U.S.C. 1396a(a)(10)(A)(ii)), as amended by
subsection (a), is amended--
(A) in subclause (XIV), by striking ``or'' at the
end;
(B) in subclause (XV), by adding ``or'' at the end;
and
(C) by adding at the end the following:
``(XVI) who are working individuals
with disabilities described in section
1905(v) (subject, notwithstanding
section 1916, to payment of premiums or
other cost-sharing charges (set on a
sliding scale based on income) that the
State may determine so long as any such
premiums or other cost-sharing charges
are the same as any premiums or other
cost-sharing charges imposed for
individuals described in subclause
(XV)), but only if the State provides
medical assistance to individuals
described in subclause (XV);''.
(2) Definition of working individuals with disabilities.--
Section 1905 of the Social Security Act (42 U.S.C. 1396d) is
amended by adding at the end the following:
``(v)(1) The term `working individuals with disabilities' means
individuals ages 16 through 64 who--
``(A) by reason of medical improvement, cease to be
eligible for benefits under section 223(d) or 1614(a)(3) at the
time of a regularly scheduled continuing disability review but
who continue to have a severe medically determinable
impairment; and
``(B) are employed.
``(2) 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.''.
(3) Conforming amendment.--Section 1905(a) of the Social
Security Act (42 U.S.C. 1396d(a)) is amended in the matter
preceding paragraph (1)--
(A) in clause (x), by striking ``or'' at the end;
(B) in clause (xi), by adding ``or'' at the end;
and
(C) by inserting after clause (xi), the following:
``(xii) individuals described in subsection (v),''.
(c) Prohibition Against Supplantation of State Funds; Maintenance
of Effort Requirement; Condition for Approval of State Plan
Amendment.--
(1) No supplantation of state funds.--Federal funds paid to
a State for medical assistance provided to an individual
described in subclause (XV) or (XVI) of section
1902(a)(10)(A)(ii) of the Social Security Act (42 U.S.C.
1396a(a)(10)(A)(ii)) must be used to supplement but not
supplant the level of State funds expended as of October 1,
1998 for programs to enable working individuals with
disabilities to work.
(2) Maintenance of effort.--With respect to a fiscal year
quarter, no Federal funds may be paid to a State for medical
assistance provided to an individual described in subclause
(XV) or (XVI) of section 1902(a)(10)(A)(ii) of the Social
Security Act (42 U.S.C. 1396a(a)(10)(A)(ii)) for such fiscal
year quarter if the Secretary of Health and Human Services
determines that the total of the State expenditures for
programs to enable working individuals with disabilities to
work for the preceding fiscal year quarter is less than the
total of such expenditures for the same fiscal year quarter of
the preceding fiscal year.
(3) Condition for approval of state plan amendments.--No
State plan amendment that proposes to provide medical
assistance to an individual described in subclause (XV) or
(XVI) of section 1902(a)(10)(A)(ii) of the Social Security Act
(42 U.S.C. 1396a(a)(10)(A)(ii)) may be approved unless the
chief executive officer of the State certifies to the Secretary
of Health and Human Services that the plan, as so amended, will
satisfy the requirements of paragraphs (1) and (2) of this
subsection.
(d) Effective Date.--
(1) In general.--The amendments made by this section shall
apply on and after October 1, 1999.
(2) Extension of effective date for state law amendment.--
In the case of a State plan under title XIX of the Social
Security Act which the Secretary of Health and Human Services
determines requires State legislation in order for the plan to
meet the additional requirements imposed by the amendments made
by this section, the State plan shall not be regarded as
failing to comply with the requirements of this section solely
on the basis of its failure to meet these additional
requirements before the first day of the first calendar quarter
beginning after the close of the first regular session of the
State legislature that begins after the date of enactment of
this Act. For purposes of the previous sentence, in the case of
a State that has a 2-year legislative session, each year of the
session is considered to be a separate regular session of the
State legislature.
SEC. 102. CONTINUATION OF MEDICARE COVERAGE FOR WORKING INDIVIDUALS
WITH DISABILITIES.
(a) Continuation of Coverage.--Section 1818A of the Social Security
Act (42 U.S.C. 1395i-2a) is amended by adding at the end the following:
``(e)(1) During the 10-year period beginning with the first month
that begins after the date of enactment of this subsection, this
section shall apply--
``(A) in subsection (a), by inserting--
``(i) in paragraph (2)(C), ``on or after the date
of enactment of the Work Incentives Improvement Act of
1999'' after ``ends''; and
``(ii) ``without being subject to a premium''
before the period; and
``(B) without regard to subsections (c)(2)(D) and (d).
``(2) Any individual who, as of the date of enactment of this
subsection is enrolled in the medicare program under this section and
would, without regard to paragraph (1), otherwise satisfy the
eligibility requirements for enrollment set forth in subsection (a)
shall be deemed to satisfy the requirement of subsection (a)(2)(C) of
that section after the application of paragraph (1)(A)(i) for purposes
of not being subject to a premium for enrollment in the medicare
program under this section.
``(3) Notwithstanding paragraph (1), paragraph (1) shall continue
to apply after the termination of the 10-year period described in that
paragraph in the case of any individual who is enrolled in the medicare
program under this section for the month that ends such 10-year
period.''.
(b) GAO Report.--Not later than 8 years after the date of enactment
of this Act, the Comptroller General of the United States shall submit
a report to Congress that--
(1) examines the effectiveness and cost of section 1818A of
the Social Security Act (42 U.S.C. 1395i-2a) as amended by
subsection (a); and
(2) recommends whether that section should continue to be
applied, as so amended, beyond the 10-year period described in
subsection (e) of that section.
SEC. 103. GRANTS TO DEVELOP AND ESTABLISH STATE INFRASTRUCTURES TO
SUPPORT WORKING INDIVIDUALS WITH DISABILITIES.
(a) Establishment.--
(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 infrastructures
that provide items and services to support working individuals
with disabilities. A State may submit an application for a
grant authorized under this section at such time, in such
manner, and containing such information as the Secretary may
determine.
(2) 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
subsection (e), the Secretary shall award grants to States to--
(A) support the establishment, implementation, and
operation of the State infrastructures described in
subsection (a); and
(B) conduct outreach campaigns regarding the
existence of such infrastructures.
(2) Eligibility for grants.--
(A) In general.--No State may receive a grant under
this subsection unless--
(i) the State has an approved amendment to
the State plan under title XIX of the Social
Security Act (42 U.S.C. 1396 et seq.) that--
(I) provides medical assistance
under such plan to individuals
described in section
1902(a)(10)(A)(ii)(XV) of the Social
Security Act (42 U.S.C.
1396a(a)(10)(A)(ii)(XV)); or
(II) provides medical assistance
under such plan to individuals
described in subclauses (XV) and (XVI)
of section 1902(a)(10)(A)(ii) of the
Social Security Act (42 U.S.C.
1396a(a)(10)(A)(ii)); and
(ii) the State demonstrates to the
satisfaction 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
described in subclause (I) or (II) of clause
(i) to remain employed (as determined under
section 1905(v)(2) of the Social Security Act
(42 U.S.C. 1396d(v)(2)).
(B) Definition of personal assistance services.--In
this paragraph, the term ``personal assistance
services'' means a range of services, provided by 1 or
more persons, designed to assist an individual with a
disability to perform daily activities on and off the
job that the individual would typically perform if the
individual did not have a disability. Such services
shall be designed to increase the individual'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
Secretary shall determine a formula for awarding grants
to States under this section that provides special
consideration to States that provide medical assistance
under title XIX of the Social Security Act to
individuals described in section
1902(a)(10)(A)(ii)(XVI) of that Act (42 U.S.C.
1396a(a)(10)(A)(ii)(XVI)).
(B) Award limits.--
(i) Minimum awards.--No State that submits
an approved application for funding under this
section shall receive a grant for a fiscal year
that is less than $500,000.
(ii) Maximum awards.--No State that submits
an approved application for funding under this
section shall receive a grant for a fiscal year
that exceeds 15 percent of the total
expenditures by the State (including the
reimbursed Federal share of such expenditures)
for medical assistance for individuals eligible
under subclause (XV) or (XVI) of section
1902(a)(10)(A)(ii), whichever is greater, as
estimated by the State and approved by the
Secretary.
(c) Availability of Funds.--
(1) Funds allocated to states.--Funds allocated to a State
under a grant made under this section for a fiscal year shall
remain available until expended.
(2) Funds not allocated to states.--Funds not allocated to
States in the fiscal year for which they are appropriated shall
remain available in succeeding fiscal years for allocation by
the Secretary using the allocation formula established by the
Secretary under subsection (c)(3)(A).
(d) Annual Report.--A State that receives 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 beneficiaries,
as defined in section 1148(k)(3) of the Social Security Act (as amended
by section 201) in the State, and title XVI disability beneficiaries,
as defined in section 1148(k)(4) of the Social Security Act (as so
amended) in the State who return to work.
(e) Appropriation.--Out of any funds in the Treasury not otherwise
appropriated, there is authorized to be appropriated and there is
appropriated to make grants under this section--
(1) for fiscal year 2000, $20,000,000;
(2) for fiscal year 2001, $25,000,000;
(3) for fiscal year 2002, $30,000,000;
(4) for fiscal year 2003, $35,000,000;
(5) for fiscal year 2004, $40,000,000; and
(6) for fiscal years 2005 through 2010, 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.
(f) Recommendation.--Not later than October 1, 2009, the Secretary
of Health and Human Services, in consultation with the Work Incentives
Advisory Panel established under section 202, shall submit a
recommendation to the Committee on Commerce and the Committee on Ways
and Means 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 2010.
SEC. 104. DEMONSTRATION OF COVERAGE 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 that provided under section
1905(a) of the Social Security Act (42 U.S.C. 1396d(a)) to individuals
described in section 1902(a)(10)(A)(ii)(XV) of that Act (42 U.S.C.
1396a(a)(10)(A)(ii)(XV)).
(b) Worker With a Potentially Severe Disability Defined.--For
purposes of this section--
(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, to become blind or disabled (as
defined under section 1614(a) of the Social Security
Act); 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
Security Act (42 U.S.C. 1396a(a)(1)) to allow for sub-State
demonstrations.
(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) Election of optional category.--The State has
elected to provide coverage under its plan under title
XIX of the Social Security Act of individuals described
in section 1902(a)(10)(A)(ii)(XV) of the Social
Security Act.
(B) 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.
(C) Independent evaluation.--The State provides for
an independent evaluation of the project.
(3) Limitations on federal funding.--
(A) Appropriation.--Out of any funds in the
Treasury not otherwise appropriated, there is
authorized to be appropriated and there is appropriated
to carry out this section--
(i) for fiscal year 2000, $70,000,000;
(ii) for fiscal year 2001, $73,000,000;
(iii) for fiscal year 2002, $77,000,000;
and
(iv) for fiscal year 2003, $80,000,000.
(B) Limitation on payments.--In no case may--
(i) the aggregate amount of payment made by
the Secretary to States under this section
exceed $300,000,000; or
(ii) payment be provided by the Secretary
for a fiscal year after fiscal year 2005.
(C) Funds allocated to states.--The Secretary shall
allocate funds to States based on their applications
and the availability of funds. Funds allocated to a
State under a grant made under this section for a
fiscal year shall remain available until expended.
(D) Funds not allocated to states.--Funds not
allocated to States in the fiscal year for which they
are appropriated shall remain available in succeeding
fiscal years for allocation by the Secretary using the
allocation formula established under this section.
(E) Payments to states.--Subject to the succeeding
provisions of this section, 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) State Defined.--In this section, the term ``State'' has the
meaning given such term for purposes of title XIX of the Social
Security Act.
TITLE II--TICKET TO WORK AND SELF-SUFFICIENCY AND RELATED PROVISIONS
Subtitle A--Ticket to Work and Self-Sufficiency
SEC. 201. ESTABLISHMENT OF THE TICKET TO WORK AND SELF-SUFFICIENCY
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 after section 1147 (as added
by section 8 of the Noncitizen Benefit Clarification and Other
Technical Amendments Act of 1998 (Public Law 105-306; 112 Stat. 2928))
the following:
``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 the beneficiary.
``(b) Ticket System.--
``(1) Distribution of tickets.--The Commissioner may issue
a ticket to work and self-sufficiency to disabled beneficiaries
for participation in the Program.
``(2) Assignment of tickets.--A disabled beneficiary
holding a ticket to work and self-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
beneficiary.
``(4) Payments to employment networks.--The Commissioner
shall pay an employment network under the Program in accordance
with the outcome payment system under subsection (h)(2) or
under the outcome-milestone payment system under subsection
(h)(3) (whichever is elected pursuant to subsection (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 may elect to
participate in the Program as an employment 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 participate 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 (and revocations).
``(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 to work and self-sufficiency, are
provided to disabled beneficiaries 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.
``(B) State agencies administering maternal and
child health services programs.--Subparagraph (A) shall
not apply with respect to any State agency
administering a program under title V of this Act.
``(3) Special requirements applicable to cross-referral to
certain state agencies.--
``(A) In general.--In any case in which an
employment network has been assigned a ticket to work
and self-sufficiency by a disabled beneficiary, no
State agency shall be deemed required, under this
section, title I of the Workforce Investment Act of
1998, title I of the Rehabilitation Act of 1973, or a
State plan approved under such title, to accept any referral of such
disabled beneficiary from such employment network unless such
employment network and such State agency have entered into a written
agreement that meets the requirements of subparagraph (B). Any
beneficiary who has assigned a ticket to work and self-sufficiency to
an employment network that has not entered into such a written
agreement with such a State agency may not access vocational
rehabilitation services under title I of the Rehabilitation Act of 1973
until such time as the beneficiary is reassigned to a State vocational
rehabilitation agency by the Program Manager.
``(B) Terms of agreement.--An agreement required by
subparagraph (A) shall specify, in accordance with
regulations prescribed pursuant to subparagraph (C)--
``(i) the extent (if any) to which the
employment network holding the ticket will
provide to the State agency--
``(I) reimbursement for costs
incurred in providing services
described in subparagraph (A) to the
disabled beneficiary; and
``(II) other amounts from payments
made by the Commissioner to the
employment network pursuant to
subsection (h); and
``(ii) any other conditions that may be
required by such regulations.
``(C) Regulations.--The Commissioner and the
Secretary of Education shall jointly prescribe
regulations specifying the terms of agreements required
by subparagraph (A) and otherwise necessary to carry
out the provisions of this paragraph.
``(D) Penalty.--No payment may be made to an
employment network pursuant to subsection (h) in
connection with services provided to any disabled
beneficiary if such employment network makes referrals
described in subparagraph (A) in violation of the terms
of the agreement required under subparagraph (A) or
without having entered into such an agreement.
``(d) Responsibilities of the Commissioner.--
``(1) Selection and qualifications of program managers.--
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 available expertise and
experience in the field of vocational rehabilitation and
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
Commissioner.
``(3) Preclusion from direct participation in delivery of
services in own service area.--Agreements under paragraph (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
shall be in addition to State agencies serving as
employment 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
enactment of this section and chooses to serve as an
employment network under the Program.
``(5) Termination of agreements with employment networks.--
The Commissioner shall terminate agreements with employment
networks for inadequate performance, as determined by the
Commissioner.
``(6) Quality assurance.--The Commissioner shall provide
for such periodic reviews as are necessary to provide for
effective quality assurance in the provision of services by
employment 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
providers of services to develop performance measurements. The
Commissioner shall ensure that the results of the periodic
reviews are made available to beneficiaries who are prospective
service recipients as they select employment networks. The
Commissioner shall ensure that the periodic surveys of
beneficiaries receiving services under the Program are designed
to measure customer service satisfaction.
``(7) Dispute resolution.--The Commissioner shall provide
for a mechanism for resolving disputes between beneficiaries
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
Program. 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.
Employment 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 agreement and this
section. The program manager shall not impose numerical limits
on the number of employment networks to be recommended pursuant
to this paragraph.
``(3) Facilitation of access by beneficiaries to employment
networks.--A program manager shall facilitate access by
beneficiaries to employment networks. The program manager shall
ensure that each beneficiary is allowed changes in employment
networks for good cause, as determined by the Commissioner,
without being deemed to have rejected services under the
Program. The program manager shall establish and maintain lists
of employment networks available to beneficiaries and shall
make such lists generally available to the public. The program
manager shall ensure that all information provided to disabled
beneficiaries pursuant to this paragraph is provided in
accessible formats.
``(4) Ensuring availability of adequate services.--The
program manager shall ensure that employment services,
vocational rehabilitation services, and other support services
are provided to beneficiaries throughout the geographic area
covered under the program manager's agreement, including rural
areas.
``(5) Reasonable access to services.--The program manager
shall take such measures as are necessary to ensure that
sufficient employment networks are available and that each
beneficiary receiving services under the Program has reasonable
access to employment services, vocational rehabilitation
services, and other support services. Services provided under
the Program may include case management, work incentives
planning, supported employment, career planning, career plan
development, vocational assessment, job training, placement,
followup 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
instrumentality 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.
``(C) Compliance with selection criteria.--No
employment network may serve under the Program unless
it meets and maintains compliance with both general
selection criteria (such as professional and
educational qualifications (where applicable)) and
specific selection criteria (such as substantial expertise and
experience in providing relevant employment services and supports).
``(D) Single or associated providers allowed.--An
employment network shall consist of either a single
provider 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 Commissioner to--
``(A) serve prescribed service areas; and
``(B) take such measures as are necessary to ensure
that employment services, vocational rehabilitation
services, and other support services provided under the
Program by, or under agreements entered into with, the
employment network are provided under appropriate
individual work plans meeting the requirements of
subsection (g).
``(3) Annual financial reporting.--Each employment network
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 employment
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 maintained
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
services, and other support services provided under the
Program by, or under agreements entered into with, the
employment network are provided under appropriate
individual work plans that meet the requirements of
subparagraph (C);
``(B) develop and implement each such individual
work plan in partnership with each beneficiary
receiving such services in a manner that affords the
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--
``(i) a statement of the vocational goal
developed with the beneficiary;
``(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 beneficiary's ticket
to work and self-sufficiency.
``(h) Employment Network Payment Systems.--
``(1) Election of payment system by employment networks.--
``(A) In general.--The Program shall provide for
payment authorized by the Commissioner to employment
networks under either an outcome payment system or an
outcome-milestone payment system. Each employment
network 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 subparagraph (B)).
``(B) No change in method of payment for
beneficiaries with tickets already assigned to the
employment 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
services from the employment network at the time of the
election 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.--
``(A) In general.--The outcome payment system shall
consist of a payment structure governing employment
networks 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
network.--The payment schedule of the outcome payment
system shall be designed so that--
``(i) the payment for each of the 60 months
during the outcome payment period for which
benefits (described in paragraphs (3) and (4)
of subsection (k)) are not payable 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
paragraph (1)(A) which meets the requirements of this
paragraph.
``(B) Early payments upon attainment of milestones
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
employment. 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
Commissioner 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 beneficiary, the average disability
insurance benefit payable under section 223 for
all beneficiaries for months during the
preceding calendar year; and
``(ii) in connection with a title XVI
disability beneficiary (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 beneficiaries who have attained age 18 but
have not attained age 65.
``(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 payable 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 benefits 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
paragraph (2)(C), the total payments permissible under
paragraph (3)(C), and the period of time specified in
paragraph (4)(B) to determine whether such percentages,
such permissible payments, and such period provide an
adequate incentive for employment networks to assist
beneficiaries to enter the workforce, while providing
for appropriate economies. 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
employment networks to assist beneficiaries to enter
the workforce, taking into account information provided
to the Commissioner by program managers, the Work
Incentives Advisory Panel established under section 202
of the Work Incentives Improvement Act of 1999, and
other reliable sources. The Commissioner 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 would
allow an adequate incentive for employment networks to
assist beneficiaries to enter the workforce. Such
alteration shall be based on information provided to
the Commissioner by program managers, the Work
Incentives Advisory Panel established under section 202
of the Work Incentives Improvement Act of 1999, or
other reliable sources.
``(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 initiate 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) Allocation of Costs.--
``(1) Payments to employment networks.--Payments to
employment networks (including State agencies that elect to
participate in the Program as an employment network) shall be
made from the Federal Old-Age and Survivors Insurance Trust
Fund or the Federal Disability Insurance Trust Fund, as
appropriate, in the case of ticketed title II disability beneficiaries
who return to work, or from the appropriation made available for making
supplemental security income payments under title XVI, in the case of
title XVI disability beneficiaries who return to work. With respect to
ticketed beneficiaries who concurrently are entitled to benefits under
title II and eligible for payments under title XVI who return to work,
the Commissioner shall allocate the cost of payments to employment
networks to which the tickets of such beneficiaries have been assigned
among such Trust Funds and appropriation, as appropriate.
``(2) Administrative expenses.--The costs of administering
this section (other than payments to employment networks) 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.
``(k) Definitions.--In this section:
``(1) Commissioner.--The term `Commissioner' means the
Commissioner of Social Security.
``(2) Disabled beneficiary.--The term `disabled
beneficiary' 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 disability 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 under title
xvi.--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
enactment of this section, the Commissioner shall prescribe such
regulations as are necessary to carry out the provisions of this
section.
``(m) Sunset of Program.--The Program established under this
section shall terminate on September 30, 2004.''.
(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:
``(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 the Social Security Act (42
U.S.C. 422(a)) is repealed.
(C) Section 222(b) of the Social Security Act (42
U.S.C. 422(b)) is repealed.
(D) Section 225(b)(1) of the Social Security Act
(42 U.S.C. 425(b)(1)) is amended by striking ``a
program of vocational rehabilitation services'' and
inserting ``a program consisting of the Ticket to Work
and Self-Sufficiency Program under section 1148 or
another program of vocational rehabilitation services,
employment services, or other support services''.
(2) Amendments to title xvi.--
(A) Section 1615(a) of the Social Security Act (42
U.S.C. 1382d(a)) is amended to read as follows:
``Sec. 1615. (a) In the case of any blind or disabled individual
who--
``(1) has not attained age 16, and
``(2) with respect to whom benefits are paid under this
title,
the Commissioner of Social Security shall make provision for referral
of such individual to the appropriate State agency administering the
State program under title V.''.
(B) Section 1615(c) of the Social Security Act (42
U.S.C. 1382d(c)) is repealed.
(C) Section 1631(a)(6)(A) of the Social Security
Act (42 U.S.C. 1383(a)(6)(A)) is amended by striking
``a program of vocational rehabilitation services'' and
inserting ``a program consisting of the Ticket to Work
and Self-Sufficiency Program under section 1148 or
another program of vocational rehabilitation services,
employment services, or other support services''.
(D) Section 1633(c) of the Social Security Act (42
U.S.C. 1383b(c)) is amended--
(i) by inserting ``(1)'' after ``(c)''; and
(ii) by adding at the end the following:
``(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 amendments made
by subsections (a) and (b) shall take effect with the first month
following 1 year after the date of enactment of this Act.
(d) Graduated Implementation of Program.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Commissioner of Social Security
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 paragraphs (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.
(3) Full implementation.--The Commissioner shall ensure
that the 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 design and
conduct a series of evaluations to assess the cost-
effectiveness of activities carried out under this
section and the amendments made thereby, 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.--The Commissioner shall design
and carry out the series of evaluations 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 consulting with
the Work Incentives Advisory Panel established under
section 202, the Comptroller General of the United
States, other agencies of the Federal Government, and
private organizations with appropriate expertise.
(C) Methodology.--
(i) Implementation.--The Commissioner, in
consultation with the Work Incentives Advisory
Panel established under section 202, shall
ensure that plans for evaluations and data
collection methods under the Program are
appropriately 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, vocational 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, vocational 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
services;
(V) the employment outcomes,
including wages, occupations, benefits,
and hours worked, of beneficiaries who
return to work after receiving tickets
under the Program and those who return
to work without receiving such tickets;
(VI) the characteristics of
providers whose services are provided
within an employment network under the
Program;
(VII) the extent (if any) to which
employment networks display a greater
willingness to provide services to
beneficiaries with a range of
disabilities;
(VIII) the characteristics
(including employment outcomes) of
those beneficiaries who receive
services under the outcome payment
system and of those beneficiaries who
receive services under the outcome-
milestone payment system;
(IX) measures of satisfaction among
beneficiaries in receipt of tickets
under the Program; and
(X) 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 Committee on Finance of the Senate a report
containing the Commissioner's evaluation of the
progress of activities conducted under the provisions
of this section and the amendments made thereby. Each
such report shall set forth the Commissioner's
evaluation of the extent to which the Program has been
successful and the Commissioner's conclusions on
whether or how the Program should be modified. Each
such report shall include such data, findings,
materials, and recommendations as the Commissioner may
consider 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
Commissioner shall determine by regulation the extent
to which--
(i) the requirement under section 222(a) of
the Social Security Act for prompt referrals to
a State agency, and
(ii) the authority of the Commissioner
under section 222(d)(2) of the Social Security
Act to provide 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.
(B) Existing agreements.--Nothing in subparagraph
(A) or the amendments made by subsection (a) shall be
construed to limit, impede, or otherwise affect any
agreement entered into pursuant to section 222(d)(2) of
the Social Security Act before the date of enactment of
this Act with respect to services provided 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
governing 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-
Sufficiency Program (and revoke such an election)
pursuant to section 1148(c)(1) of the Social Security
Act and provision for periodic opportunities for
exercising such elections (and revocations);
(D) the status of State agencies under section
1148(c)(1) at the time that State agencies exercise
elections (and revocations) under that section;
(E) the terms of agreements to be entered into with
program managers pursuant to section 1148(d) of the
Social Security Act, including--
(i) the terms by which program managers are
precluded from direct participation in the
delivery of services pursuant to section
1148(d)(3) of the Social Security Act;
(ii) standards which must be met by quality
assurance measures referred to in paragraph (6)
of section 1148(d) and methods of recruitment
of employment networks utilized pursuant to
paragraph (2) of section 1148(e); and
(iii) the format under which dispute
resolution will operate under section
1148(d)(7);
(F) the terms of agreements to be entered into with
employment networks pursuant to section 1148(d)(4) of
the Social Security Act, including--
(i) the manner in which service areas are
specified pursuant to section 1148(f)(2)(A) of
the Social Security Act;
(ii) the general selection criteria and the
specific selection criteria which are
applicable to employment networks under section
1148(f)(1)(C) of the Social Security Act in
selecting service providers;
(iii) specific requirements relating to
annual financial reporting by employment
networks pursuant to section 1148(f)(3) of the
Social Security Act; and
(iv) the national model to which periodic
outcomes reporting by employment networks must
conform under section 1148(f)(4) of the Social
Security Act;
(G) standards which must be met by individual work
plans pursuant to section 1148(g) of the Social
Security Act;
(H) standards which must be met by payment systems
required under section 1148(h) of the Social Security
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);
(ii) the terms which must be met by an
outcome payment system under section
1148(h)(2);
(iii) the terms which must be met by an
outcome-milestone payment system under section
1148(h)(3);
(iv) any revision of the percentage
specified in paragraph (2)(C) of section
1148(h) of the Social Security Act or the
period of time specified in paragraph (4)(B) of
such section 1148(h); 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.
SEC. 202. WORK INCENTIVES ADVISORY PANEL.
(a) Establishment.--There is established within the Social Security
Administration a panel to be known as the ``Work Incentives Advisory
Panel'' (in this section referred to as the ``Panel'').
(b) Duties of Panel.--It shall be the duty of the Panel to--
(1) advise the Secretary of Health and Human Services, the
Secretary of Labor, the Secretary of Education, and the
Commissioner of Social Security on issues related to work
incentives programs, planning, and assistance for individuals
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
(2) with respect to the Ticket to Work and Self-Sufficiency
Program established under section 1148 of the Social Security
Act--
(A) 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
employment 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;
(B) advise the Commissioner regarding the most
effective designs for research and demonstration
projects associated with the Program or conducted
pursuant to section 302;
(C) advise the Commissioner on the development of
performance measurements relating to quality assurance
under section 1148(d)(6) of the Social Security Act;
and
(D) furnish progress reports on the Program to the
Commissioner and each House of Congress.
(c) Membership.--
(1) Number and appointment.--The Panel shall be composed of
12 members appointed by the Commissioner of Social Security in
consultation with the Speaker of the House of Representatives,
the Minority Leader of the House of Representatives, the
Majority Leader of the Senate, and the Minority Leader of the
Senate.
(2) Representation.--All members appointed to the Panel
shall have experience or expert knowledge in the fields of, or
related to, work incentive programs, employment services,
vocational rehabilitation services, health care services, and
other support services for individuals with disabilities. At
least 7 members of the Panel shall be individuals with
disabilities or representatives of individuals with
disabilities, except that, of those 7 members, at least 5
members shall be 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 section 201(a) of this Act)).
(3) Terms.--
(A) 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 subparagraphs (B)
and (C). The initial members shall be appointed not
later than 90 days after the date of enactment of this
Act.
(B) Terms of initial appointees.--As designated by
the Commissioner at the time of appointment, of the
members first appointed--
(i) 6 of the members appointed under
paragraph (1) shall be appointed for a term of
2 years, and
(ii) 6 of the members appointed under
paragraph (1) shall be appointed for a term of
4 years.
(C) 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 member'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.
(4) Basic pay.--Members shall each be paid at a rate, and
in a manner, that is consistent with guidelines established
under section 7 of the Federal Advisory Committee Act (5 U.S.C.
App.).
(5) 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.
(6) Quorum.--Eight members of the Panel shall constitute a
quorum but a lesser number may hold hearings.
(7) Chairperson.--The Chairperson of the Panel shall be
designated by the Commissioner. The term of office of the
Chairperson shall be 4 years.
(8) Meetings.--The Panel shall meet at least quarterly and
at other times at the call of the Chairperson or a majority of
its members.
(d) Director and Staff of Panel; Experts and Consultants.--
(1) Director.--The Panel shall have a Director who shall be
appointed by the Commissioner and paid at a rate, and in a
manner, that is consistent with guidelines established under
section 7 of the Federal Advisory Committee Act (5 U.S.C.
App.).
(2) Staff.--Subject to rules prescribed by the
Commissioner, the Director may appoint and fix the pay of
additional personnel as the Director considers appropriate.
(3) Experts and consultants.--Subject to rules prescribed
by the Commissioner, the Director may procure temporary and
intermittent services under section 3109(b) of title 5, United
States Code.
(4) 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 section.
(e) Powers of Panel.--
(1) Hearings and sessions.--The Panel may, for the purpose
of carrying out its duties under this section, hold such
hearings, sit and act at such times and places, and take such
testimony and evidence as the Panel considers appropriate.
(2) 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.
(3) 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.
(f) Reports.--
(1) Interim reports.--The Panel shall submit to the
President and Congress interim reports at least annually.
(2) Final report.--The Panel shall transmit a final report
to the President and Congress not later than 8 years after the
date of enactment of this Act. The final report shall contain a
detailed statement of the findings and conclusions of the
Panel, together with its recommendations for legislation and
administrative actions which the Panel considers appropriate.
(g) Termination.--The Panel shall terminate 30 days after the date
of the submission of its final report under subsection (f)(2).
(h) Allocation of Costs.--The costs of carrying out this section
shall be paid from amounts made available for the administration of
title II of the Social Security Act (42 U.S.C. 401 et seq.) and amounts
made available for the administration of title XVI of that Act (42
U.S.C. 1381 et seq.), and shall be allocated among those amounts as
appropriate.
Subtitle B--Elimination of Work Disincentives
SEC. 211. PROHIBITION ON USING WORK ACTIVITY AS A BASIS FOR REVIEW OF
AN INDIVIDUAL'S DISABLED STATUS.
Section 221 of the Social Security Act (42 U.S.C. 421) is amended
by adding at the end the following:
``(m)(1) In any case where an individual entitled to disability
insurance benefits under section 223 or to monthly insurance benefits
under section 202 based on such individual's disability (as defined in
section 223(d)) has received such benefits for at least 24 months--
``(A) no continuing disability review conducted by the
Commissioner may be scheduled for the 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
substantial gainful activity.''.
SEC. 212. EXPEDITED ELIGIBILITY DETERMINATIONS FOR APPLICATIONS OF
FORMER LONG-TERM BENEFICIARIES THAT COMPLETED AN EXTENDED
PERIOD OF ELIGIBILITY.
Section 223 of the Social Security Act (42 U.S.C. 423) is amended
by adding at the end the following:
``Expedited Eligibility Determinations for Applications of Former Long-
Term Beneficiaries That Completed an Extended Period of Eligibility
``(j) The Commissioner of Social Security shall establish a process
for providing an expedited eligibility determination in the case of an
application for disability insurance benefits under this section, or
for monthly insurance benefits under section 202 based on another
individual's disability, that is filed by an individual that
previously--
``(1) received such benefits for at least 24 months; and
``(2) engaged in substantial gainful activity during the
36-month period following the end of a trial work period under
section 222(c).''.
Subtitle C--Work Incentives Planning, Assistance, and Outreach
SEC. 221. WORK INCENTIVES OUTREACH PROGRAM.
Part A of title XI of the Social Security Act (42 U.S.C. 1301 et
seq.), as amended by section 201, is amended by adding after section
1148 the following:
``work incentives outreach program
``Sec. 1149. (a) Establishment.--
``(1) In general.--The Commissioner, in consultation with
the Work Incentives Advisory Panel established under section
202 of the Work Incentives Improvement Act of 1999, shall
establish a community-based work incentives planning and
assistance program for the purpose of disseminating accurate
information to disabled beneficiaries on work incentives
programs and issues related to such programs.
``(2) Grants, cooperative agreements, contracts, and
outreach.--Under the program established under this section,
the Commissioner shall--
``(A) establish a competitive program of grants,
cooperative agreements, or contracts to provide
benefits planning and assistance, including information
on the availability of protection and advocacy
services, to disabled beneficiaries, 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 disabled beneficiaries (and to the families
of such beneficiaries) who are potentially eligible to
participate in Federal 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
rehabilitation and work-related training and
counseling;
``(C) establish a corps of trained, accessible, and
responsive work incentives specialists within the
Social Security Administration who will specialize in
disability work incentives under titles II and XVI for
the purpose of disseminating 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 the work incentive
specialists and the individuals providing
planning assistance described in subparagraph
(C); and
``(ii) technical assistance to
organizations and entities that are designed to
encourage disabled beneficiaries to return to
work.
``(3) Coordination with other programs.--The
responsibilities of the Commissioner established under this
section shall be coordinated with other public and private
programs that provide information and assistance regarding
rehabilitation services and independent living supports and
benefits planning for disabled beneficiaries including the
program under section 1619, the plans for achieving self-
support program (PASS), and any other Federal or State work
incentives programs that are designed to assist disabled
beneficiaries, including educational agencies that provide
information and assistance 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.)), and other services.
``(b) Conditions.--
``(1) Selection of entities.--
``(A) Application.--An entity shall submit an
application for a grant, cooperative agreement, or
contract to provide benefits planning and assistance to
the Commissioner at such time, in such manner, and
containing such information as the Commissioner may
determine is necessary 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
organizations.--
``(i) In general.--The Commissioner may
award a grant, cooperative agreement, or
contract under this section to a State or a
private agency or organization (other than
Social Security Administration Field Offices
and the State agency administering the State
medicaid program under title XIX, including any
agency or entity described in clause (ii), that
the Commissioner determines is qualified to
provide the planning, assistance, and
information described in paragraph (2)).
``(ii) Agencies and entities described.--
The agencies and entities described in this
clause are the following:
``(I) Any public or private agency
or organization (including Centers for
Independent Living established under
title VII of the Rehabilitation Act of
1973, protection and advocacy
organizations, client assistance
programs established in accordance with
section 112 of the Rehabilitation Act
of 1973, and State Developmental
Disabilities Councils established in
accordance with section 124 of the
Developmental Disabilities Assistance
and Bill of Rights Act (42 U.S.C.
6024)) that the Commissioner determines
satisfies the requirements of this
section.
``(II) The State agency
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
agreement, or contract under this section to any entity
that the Commissioner determines would have a conflict
of interest if the entity were to receive a grant,
cooperative agreement, or contract under this section.
``(2) Services provided.--A recipient of a grant,
cooperative agreement, or contract to provide benefits planning
and assistance shall select 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 participate 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
beneficiaries.--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.
``(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
beneficiary' has the meaning given that term in section
1148(k)(2).''.
SEC. 222. STATE GRANTS FOR WORK INCENTIVES ASSISTANCE TO DISABLED
BENEFICIARIES.
Part A of title XI of the Social Security Act (42 U.S.C. 1301 et
seq.), as amended by section 221, is amended by adding after section
1149 the following:
``state grants for work incentives assistance to disabled beneficiaries
``Sec. 1150. (a) In General.--Subject to subsection (c), the
Commissioner may make payments in each State to the protection and
advocacy system established 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.--
``(1) In general.--Subject to paragraph (2), services
provided to disabled beneficiaries pursuant to a payment made
under this section may include--
``(A) information and advice about obtaining
vocational rehabilitation and employment services; and
``(B) 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 application
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
protection 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.
``(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 paragraph
(1) by a percentage equal to the percentage increase in the
total amount appropriated to carry out this section between the
preceding fiscal year and the fiscal year involved.
``(e) Annual Report.--Each protection and advocacy system that
receives a payment under this section shall submit an annual report to
the Commissioner and the Work Incentives Advisory Panel established
under section 202 of the Work Incentives Improvement Act of 1999 on the
services provided to individuals by the system.
``(f) Funding.--
``(1) Allocation of payments.--Payments under this section
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
beneficiary' has the meaning given that term in section
1148(k)(2).
``(3) Protection and advocacy system.--The term `protection
and advocacy system' means a protection and advocacy system
established pursuant to part C of title I of the Developmental
Disabilities Assistance and Bill of Rights Act (42 U.S.C. 6041
et seq.).''.
TITLE III--DEMONSTRATION PROJECTS AND STUDIES
SEC. 301. EXTENSION OF DISABILITY INSURANCE PROGRAM DEMONSTRATION
PROJECT AUTHORITY.
Section 505 of the Social Security Disability Amendments of 1980
(42 U.S.C. 1310 note) is amended--
(1) in subsection (a)(1)--
(A) by striking ``and (B)'' and inserting ``,
(B)'';
(B) by inserting ``, and (C) implementing sliding
scale benefit offsets using variations in the amount of
the offset as a proportion of earned income, the
duration of the offset period, and the method of
determining the amount of income earned by the
beneficiaries, and using state-of-the-art information
technology and electronic funds transfer technology to
streamline the reporting of data and the implementation
of the offsets, and developing and making available to
beneficiaries, their families, guardians, and
advocates, through the Internet information regarding
work incentives and assistance for beneficiaries to
make informed decisions regarding work,'' after
``rehabilitation),''; and
(C) by adding at the end the following: ``The
Commissioner may expand the scope of any such
demonstration project to include any group of
applicants for benefits under such program with
impairments which may reasonably 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.'';
(2) in subsection (a)(3), by striking ``June 10, 1996'' and
inserting ``June 10, 2001'';
(3) in subsection (a)(4), by inserting ``and on or before
October 1, 2000,'' after ``1995,''; and
(4) in subsection (c), by striking ``October 1, 1996'' and
inserting ``October 1, 2002''.
SEC. 302. DEMONSTRATION PROJECTS PROVIDING FOR REDUCTIONS IN DISABILITY
INSURANCE BENEFITS BASED ON EARNINGS.
(a) Authority.--The Commissioner of Social Security shall conduct
demonstration projects for the purpose of evaluating, through the
collection of data, a program for title II disability beneficiaries (as
defined in section 1148(k)(3) of the Social Security Act) under which
each $1 of benefits payable under section 223, or under section 202
based on the beneficiary's disability, is reduced for each $2 of such
beneficiary's earnings that is above a level to be determined by the
Commissioner. Such projects shall be conducted at a number of
localities which the Commissioner shall determine is sufficient to
adequately evaluate the appropriateness of national implementation of
such a program. Such projects shall identify reductions in Federal
expenditures that may result from the permanent implementation of such
a program.
(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.
The Commissioner shall take into account advice provided by the
Work Incentives Advisory Panel pursuant to section
202(b)(2)(B).
(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,
occupations, benefits, and hours worked, of
beneficiaries who return to work as a result of
participation in the project.
The Commissioner may include within the matters evaluated under
the project the merits of trial work periods and periods of
extended eligibility.
(c) Waivers.--The Commissioner may waive compliance with the
benefit provisions of title II of the Social Security Act, and the
Secretary of Health and Human Services may waive compliance with the
benefit requirements of title XVIII of that Act, insofar as is
necessary for a thorough evaluation of the alternative methods
under consideration. No such project shall be actually placed in
operation unless at least 90 days prior thereto a written report,
prepared for purposes of notification and information only and
containing a full and complete description thereof, has been
transmitted by the Commissioner to the Committee on Ways and Means of
the House of Representatives and to the Committee on Finance of the
Senate. Periodic reports on the progress of such projects shall be
submitted by the Commissioner to such committees. When appropriate,
such reports shall include detailed recommendations for changes in
administration or law, or both, to carry out the objectives stated in
subsection (a).
(d) Interim Reports.--Not later than 2 years after the date of
enactment of this Act, and annually thereafter, the Commissioner of
Social Security shall submit to Congress an interim report on the
progress of the demonstration projects carried out under this
subsection together with any related data and materials which the
Commissioner of Social Security may consider appropriate.
(e) Final Report.--The Commissioner of Social Security shall submit
to Congress a final report with respect to all demonstration projects
carried out under this section not later than 1 year after their
completion.
(f) Expenditures.--Expenditures made for demonstration projects
under this section shall be made from the Federal Disability Insurance
Trust Fund and the Federal Old-Age and Survivors Insurance Trust Fund,
as determined appropriate by the Commissioner 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. SENSE OF CONGRESS REGARDING ADDITIONAL DEMONSTRATION
PROJECTS.
It is the sense of Congress that the Commissioner of Social
Security and the Secretary of Health and Human Services should
establish additional demonstration projects to assist individuals with
disabilities to engage in work.
SEC. 304. STUDIES AND REPORTS.
(a) Study by General Accounting Office of Existing Disability-
Related Employment Incentives.--
(1) Study.--As soon as practicable after the date of
enactment of this Act, the Comptroller General of the United
States shall undertake a study to assess existing tax credits
and other disability-related employment incentives under the
Americans with Disabilities Act of 1990 and other Federal laws.
In such study, the Comptroller General shall specifically
address the extent to which such credits and other incentives
would encourage employers to hire and retain individuals with
disabilities.
(2) Report.--Not later than 3 years after the date of
enactment of this Act, the Comptroller General shall transmit
to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate a
written report presenting the results of the Comptroller
General's study conducted pursuant to this subsection, together
with such recommendations for legislative or administrative
changes as the Comptroller General determines are appropriate.
(b) Study by General Accounting Office of Existing Coordination of
the DI and SSI Programs as They Relate to Individuals Entering or
Leaving Concurrent Entitlement.--
(1) Study.--As soon as practicable after the date of
enactment of this Act, the Comptroller General of the United
States shall undertake a study to evaluate the coordination
under current law of the disability insurance program under
title II of the Social Security Act and the supplemental
security income program under title XVI of that Act, as such
programs relate to individuals entering or leaving concurrent
entitlement under such programs. In such study, the Comptroller
General shall specifically address the effectiveness of work
incentives under such programs with respect to such individuals
and the effectiveness of coverage of such individuals under
titles XVIII and XIX of the Social Security Act.
(2) Report.--Not later than 3 years after the date of
enactment of this Act, the Comptroller General shall transmit
to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate a
written report presenting the results of the Comptroller
General's study conducted pursuant to this subsection, together
with such recommendations for legislative or administrative
changes as the Comptroller General determines are appropriate.
(c) Study by General Accounting Office of the Impact of the
Substantial Gainful Activity Limit on Return to Work.--
(1) Study.--As soon as practicable after the date of
enactment of this Act, the Comptroller General of the United
States shall undertake a study of the substantial gainful
activity level applicable as of that date to recipients of
benefits under section 223 of the Social Security Act (42
U.S.C. 423) and under section 202 of that Act (42 U.S.C. 402)
on the basis of a recipient having a disability, and the effect
of such level as a disincentive for those recipients to return
to work. In the study, the Comptroller General also shall
address the merits of increasing the substantial gainful
activity level applicable to such recipients of benefits and
the rationale for not yearly indexing that level to inflation.
(2) Report.--Not later than 2 years after the date of
enactment of this Act, the Comptroller General shall transmit
to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate a
written report presenting the results of the Comptroller
General's study conducted pursuant to this subsection, together
with such recommendations for legislative or administrative
changes as the Comptroller General determines are appropriate.
TITLE IV--TECHNICAL AMENDMENTS
SEC. 401. TECHNICAL AMENDMENTS RELATING TO DRUG ADDICTS AND ALCOHOLICS.
(a) Clarification Relating to the Effective Date of the Denial of
Social Security Disability Benefits to Drug Addicts and Alcoholics.--
Section 105(a)(5) of the Contract with America Advancement Act of 1996
(Public Law 104-121; 110 Stat. 853) is amended--
(1) in subparagraph (A), by striking ``by the Commissioner
of Social Security'' and ``by the Commissioner''; and
(2) by adding at the end the following:
``(D) For purposes of this paragraph, an
individual's claim, with respect to benefits under
title II of the Social Security Act based on
disability, which has been denied in whole before the
date of 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
administrative 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 Security pursuant to
relief in a class action or implementation by
the Commissioner of a court remand order.
``(E) Notwithstanding the provisions of this
paragraph, with respect to any individual for whom the
Commissioner of Social Security does not perform the
entitlement redetermination before the date prescribed
in subparagraph (C), the Commissioner shall perform
such entitlement redetermination in lieu of a
continuing disability review whenever the Commissioner
determines that the individual's entitlement is subject
to redetermination based on the preceding provisions of
this paragraph, and the provisions of section 223(f) of
the Social Security Act shall not apply to such
redetermination.''.
(b) Correction to Effective Date of Provisions Concerning
Representative Payees and Treatment Referrals of Social Security
Beneficiaries Who Are Drug Addicts and Alcoholics.--Section
105(a)(5)(B) of the Contract with America Advancement Act of 1996 (42
U.S.C. 405 note) is amended to read as follows:
``(B) The amendments made by paragraphs (2) and (3)
shall take effect on July 1, 1996, with respect to any
individual--
``(i) whose claim for benefits is finally
adjudicated on or after the date of enactment
of this Act; or
``(ii) whose entitlement to benefits is
based on 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:
``(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 Commissioner,
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
``(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
paragraph (1)(A), who receives a benefit under this title for
the month preceding the first month of such confinement, and
whose benefit under this title is determined by the
Commissioner to be not payable by reason of confinement based
on the information provided by the institution, $400 (subject
to reduction under clause (ii)) if the institution 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 individual under an
agreement entered into under section 1611(e)(1)(I).
``(iii) The provisions of section 552a of title 5, United States
Code, shall not apply to any agreement entered into under clause (i) or
to information exchanged pursuant to such agreement.
``(iv) There is authorized to be transferred from the Federal Old-
Age and Survivors Insurance Trust Fund and the Federal Disability
Insurance Trust Fund, as appropriate, such sums as may be necessary to
enable the Commissioner to make payments to institutions required by
clause (i)(II).
``(v) The Commissioner is authorized to provide, on a reimbursable
basis, information obtained pursuant to agreements entered into under
clause (i) to any agency administering a Federal or federally assisted
cash, food, or medical assistance program for eligibility purposes.''.
(2) Effective date.--The amendments made by this subsection
shall apply to individuals whose 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'' and inserting ``throughout'';
(B) in clause (i), by striking ``an offense
punishable by imprisonment for more than 1 year
(regardless of the actual sentence imposed)'' and
inserting ``a criminal offense''; and
(C) in clause (ii)(I), by striking ``an offense
punishable by imprisonment for more than 1 year'' and
inserting ``a criminal offense''.
(2) Effective date.--The amendments made by this subsection
shall apply to individuals whose period of confinement in an
institution commences on or after the first day of the fourth
month beginning after the month in which this Act is enacted.
(c) Conforming Title XVI Amendments.--
(1) 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'';
(B) by redesignating clauses (ii) and (iii) as
clauses (iii) and (iv), respectively; and
(C) by inserting after clause (i) the following:
``(ii) The dollar amounts specified in clause (i)(II) shall be
reduced by 50 percent if the Commissioner is also required to make a
payment to the institution with respect to the same individual under an
agreement entered into under section 202(x)(3)(B).''.
(2) Expansion of categories of institutions eligible to
enter into agreements with the commissioner.--Section
1611(e)(1)(I)(i) of the Social Security 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) Effective date.--The amendments made by this subsection
shall take effect as if included in the enactment of section
203(a) of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (Public Law 104-193; 110 Stat.
2186). The reference to section 202(x)(1)(A)(ii) of the Social
Security Act in section 1611(e)(1)(I)(i) of the Social Security
Act as amended by paragraph (2) shall be deemed a reference to
such section 202(x)(1)(A)(ii) as amended by subsection
(b)(1)(C).
(d) Continued Denial of Benefits to Sex 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:
``(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 the
Social Security Act (42 U.S.C. 402(x)(1)(B)(ii)) is amended by
striking ``clause (ii)'' and inserting ``clauses (ii) and
(iii)''.
(3) Effective date.--The amendments made by this subsection
shall apply with respect to benefits for months ending after
the date of enactment of this Act.
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 therefore (in such form and manner, and with such official,
as may be prescribed in regulations made under chapter 2 of such Code),
if such application is filed no later than the due date of the 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),
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 beginning 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 paragraph (4) or (5) of section 1402(c) of such Code)
except for the exemption under section 1402(e)(1) of such Code.
(b) Effective Date.--Subsection (a) shall apply with respect to
service performed (to the extent specified in such subsection) in
taxable years beginning after December 31, 1999, and with respect to
monthly insurance benefits payable under title II of the Social
Security Act on the basis of the wages and self-employment income of
any individual for months in or after the calendar year in which such
individual's application for revocation (as described in such
subsection) is effective (and lump-sum death payments payable under
such title on the basis of such wages and self-employment income in the
case of deaths occurring in or after such calendar year).
SEC. 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).
SEC. 405. AUTHORIZATION FOR STATE TO PERMIT ANNUAL WAGE REPORTS.
(a) In General.--Section 1137(a)(3) of the Social Security Act (42
U.S.C. 1320b-7(a)(3)) is amended by inserting before the semicolon the
following: ``, and except that in the case of wage reports with respect
to domestic service employment, a State may permit employers (as so
defined) that make returns with respect to such employment on a
calendar year basis pursuant to section 3510 of the Internal Revenue
Code of 1986 to make such reports on an annual basis''.
(b) Technical Amendments.--Section 1137(a)(3) of the Social
Security Act (42 U.S.C. 1320b-7(a)(3)) is amended--
(1) by striking ``(as defined in section
453A(a)(2)(B)(iii))''; and
(2) by inserting ``(as defined in section 453A(a)(2)(B))''
after ``employers'' .
(c) Effective Date.--The amendments made by this section shall
apply to wage reports required to be submitted on and after the date of
enactment of this Act.
<all>
______ HON. RICK LAZIO of new york in the house of representatives Thursday, March 18, 1999 Mr. LAZIO: Mr. Speaker, I rise today to introduce a bill that has one goal and one goal only--enabling individuals with disabilities to pursue their desire to work. In today's workplace, less than one-half of one percent of disabled Americans successfully move from disability benefits to employment and self-sufficiency. A recent Harris Survey, however, found that 72 percent of Americans with disabilities want to work but nearly 75 percent of persons with disabilities are unemployed. What is the problem, here? Let me tell you about a man from my district. He is a 39-year-old Navy Veteran from Bay Shore, NY. Several years ago, he worked on Wall Street with the hopes of becoming a stockbroker. Unfortunately, an accident in 1983 left him a quadriplegic. Because of his injury, this man relies on a tracheostomy to help him breath and speak. He requires nurses or caregives to clean his tracheostomy and requires 24-hour home care to assist him bathing, dressing, housekeeping, and numerous other daily activities. This individual's physical challenge, however, does not inhibit his ability to become a stockbroker. Ten years after his tragic accident, he successfully passed the "Series 7" test, a grueling 6-hour exam, to become a licensed stockbroker. Except for Federal barriers, he would be a stock broker today. He cannot, however, because he would lose his Medicaid and Medicare, which he needs to survive. His situation is not unique. His predicament is replicated all across this country--by the millions. Suffolk County, NY, alone has 261,000 disabled individuals--most of whom want to work. Yet, disabled Americans must choose between working and surviving. Federal benefit programs such as Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) provide benefits, including eligibility for health coverage through Medicare and Medicaid. Services that many disabled workers require, such as personal assistance, are often not covered by employer health care. So, when a disabled American secures a job and earns income, he or she may lose their government benefits and, subsequently, their health coverage. This is why I have introduced the Work Incentives Improvement Act in the House of Representatives. The Federal Government should remove existing barriers and allow these individuals to work. Like all other Americans, disabled Americans deserve economic opportunity. They deserve the satisfaction that only a paycheck can bring. They deserve to be in control of their lives and have the peace of mind of independence and personal security. The Work Incentives Improvement Act takes significant steps toward reforming Federal disability programs, improving access to needed services, and releasing the shackles of dependency. Look at today's disability program: more than 7.5 million disabled Americans receive benefits from SSI and SSDI. Providing assistance to these individuals costs the Government $73 billion a year--making these disability programs the fourth largest entitlement expenditure in the Federal Government. Now, if only one 1 percent, or 75,000, of the 7.5 million disabled adults were to become employed, Federal savings in disability benefit would total $3.5 billion over the lifetime of the individual. Removing barriers to work is a major benefit to disabled Americans in their pursuit of self-sufficiency, and it also contributes to preserving the Social Security trust fund. The Work incentives Improvement Act would create new State options for SSDI and SSI beneficiaries who return to work to purchase the health care coverage they would otherwise be entitled to if they did not work. It would support a user-friendly, public-private approach job training and placement assistance for individuals with disabilities who want to work, and it provides for new ways to inform SSDI and SSI beneficiaries of available work incentives. The man from Bay Shore, NY, said, "I want to work. I do not want to be a burden to taxpayers." The Work Incentives Improvement Act will help him become a successful stockbroker. When he does so, he hopes to open to open his own firm and hire people with disabilities. Now is the time to make major progress toward removing barriers and enabling people with disabilities to work. Millions of Americans are waiting eagerly to unleash their creativity and pursue the American dream. They are waiting for us to act, Mr. Speaker. Let's act now.
______ HON. FORTNEY PETE STARK of california in the house of representatives Thursday, March 18, 1999 Mr. STARK: Mr. Speaker, I am honored to co-sponsor the Work Incentives Improvement Act of 1999. This bill would remove the barriers to health insurance and employment inherent in the current disability insurance (DI) system, and enable many Americans to return to work. Disabled people have much to offer. It is time that we recognize and encourage them to participate as contributing members of society. I am especially pleased to support the Medicare and Medicaid provisions of this bill. Without these programs, many people living with disabilities would not have access to the care that is so vital to their health and well-being. Because private health insurance is not affordable or available to them, even after returning to work, we must keep Medicare and Medicaid available to the working disabled. There is one segment to the disabled population that I urge my colleagues to give special consideration: End Stage Renal Disease patients. As you know, there are about 260,000 Americans on dialysis and another 80,000 who are dependent on a kidney transplant (with about 11,500 kidney transplants performed annually). About 120,000 dialysis patients are of working age (between 20 and 64), yet fewer than 28,000 are working. The "USRDS Abstract of Medical Evidence Reports, June 1, 1996 to June 1, 1997," reveals that 38.1% of all dialysis patients 18-60 years of age were employed full time, part time, or were students before onset of ESRD. But only 22.9% of ESRD patients in the same age group were employed full time, part time, or were students after the start of dialysis. This 15% (38.1% minus 22.9%) differential is the prime hope for return to work efforts. Of the transplant patients, most (88%) are of working age, but only about half of them are working. Section 102 of your bill provides Medicare coverage for working individuals with disabilities--but ESRD dialysis patients already have this protection. For transplant patients, Medicare does not cover their major health need--coverage of $8,000-$10,000 per year for immunosuppressive drugs--after 36 months. Clearly, we should tailor some special provisions to this population. I would like to suggest a series of ESRD return-to-work amendments that would save total government revenues in the long run. While these proposals may increase Medicare spending, they would reduce Social Security disability and Medicaid spending. There are just preliminary ideas, and I hope that you and the renal community could refine these ideas prior to mark-up.
Mr. Speaker, these are just a few, quick ideas. I am sure that experts in this field could suggest other steps to ensure that the ESRD program not only saves lives, but helps people have a good and productive life.
Monday, July 26, 1999 The SPEAKER pro tempore (Mr. Simpson). Under a previous order of the House, the gentleman from Minnesota (Mr. Ramstad) is recognized for 5 minutes. Mr. RAMSTAD: Mr. Speaker, 9 years ago today, President Bush signed the Americans with Disabilities Act into law. Since my election to the House later that same year and as a Minnesota State Senator from 1981 to 1990, I have worked hard to help people with disabilities live up to their full potential. That is why I, like many Members of this Chamber, strongly support the Americans with Disabilities Act, and we celebrate its enactment. But, Mr. Speaker, much more work needs to be done. In signing the ADA, President Bush noted the law is designed "to ensure that people with disabilities are given the basic guarantees for which they have worked so long and so hard: independence, freedom of choice, control of their lives, the opportunity to blend fully and equally into the rich mosaic of the American mainstream." As we celebrate the anniversary of this historic legislation, we reflect on all that has been achieved for people with disabilities. We must also, however, address where we have failed to empower people with disabilities. In 1990, President Bush, in signing that historic act, reminded us that many of our fellow citizens with disabilities are unemployed. They want to work, and they can work. This is a tremendous pool of people who will bring to jobs diversity, loyalty, low turnover rate, and only one request: the chance to prove themselves. Mr. Speaker, despite the remarkably low unemployment rate in America today, people with disabilities are still asking for this chance to prove themselves in the workplace. A recent Harris poll found that unemployment among people with disabilities is between 70 and 75 percent. Think of that: 70 to 75 percent, or three-quarters of people with disabilities are unemployed in America today. Historically, fewer than 1 percent of people with disabilities leave the SSI and SSDI rolls following successful rehabilitation. Individuals with disabilities have insufficient access to and choice of services they need to become employed. Most SSI and SSDI beneficiaries are never even offered rehabilitation services. Mr. Speaker, we all know the ADA sought to improve this situation. But the ADA did not remove all the barriers within the current Federal programs that prohibit people with disabilities from working. It is time to eliminate work disincentives for people with disabilities. Eliminating work disincentives for people with disabilities is not just humane public policy, it is sound fiscal policy. It is not just the right thing to do, it is also the cost-effective thing to do. President Bush knew that discouraging people with disabilities from working, from earning a regular paycheck, paying taxes and moving off public assistance actually results in reduced Federal revenues. He noted, and I am quoting again: "When you add together the Federal, State, local and private funds, it costs almost $200 billion annually to support Americans with disabilities. In effect, to keep them dependent." And that was in 1990, Mr. Speaker. We certainly spend more than that today to keep people with disabilities dependent on the system. Like everyone else, people with disabilities have to make decisions based on financial reality. Should they consider returning to work, or even making it through vocational rehabilitation, the risk of losing vital Federal health benefits often becomes too threatening to future financial stability. As a result, Mr. Speaker, they are compelled not to work. Given the sorry state of present law, that is generally a reasonable and a rational decision for people with disabilities. The National Council on Disabilities said it best in its report to the 105th Congress on removing barriers to work when it wrote: ``Social Security programs can be transformed from a lifelong entitlement into an investment in employment potential for thousands of individuals.'' Transforming these Federal programs to springboards into the work force is a goal of legislation that I cosponsored in the House with the gentleman from New York (Mr. Lazio) and many others on both sides of the aisle, the Work Incentives Improvement Act, or H.R. 1180. This critical legislation has been passed by the Committee on Commerce and a similar bill has been approved by the Senate. Mr. Speaker, preventing people from working runs counter to the American spirit, one that thrives on individual achievements and the larger contributions to society that result. We must not rest until we pass the Work Incentives Improvement Act. People with disabilities deserve the opportunity to fulfill their dreams. Let us give them the chance to prove themselves now.
106th CONGRESS
1st Session
H. R. 1180
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 individuals with meaningful
opportunities to work, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 18, 1999
Mr. Lazio (for himself, Mr. Waxman, Mr. Bliley, Mr. Dingell, Mrs.
Johnson of Connecticut, Mr. Matsui, Mr. Bilirakis, Mr. Brown of Ohio,
Mr. Ramstad, Mr. Cardin, Mr. Greenwood, Ms. Baldwin, Mr. Camp, Mr.
Stark, Mr. Pickering, Mr. Pallone, Mr. Foley, Mr. Levin, Mr. Bilbray,
Mr. Tanner, Mrs. Morella, Mr. Doggett, Mr. Horn, Mr. Murtha, Mr. Upton,
Mr. Strickland, Mrs. Kelly, Mr. Hoeffel, Mr. Boehlert, Mr. Boucher, Mr.
Kolbe, Ms. McCarthy of Missouri, Mr. Frelinghuysen, Mr. Markey, Mr.
Barrett of Wisconsin, Mr. Gordon, Mr. Rush, Mr. Wynn, Mr. Meehan, Mr.
Delahunt, Mr. Barcia, Mr. Green of Texas, Mr. Klink, and Mr. Jefferson)
introduced the following bill; which was referred to the Committee on
Ways and Means, and in addition to the Committee on Commerce, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
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 individuals 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 ``Work Incentives
Improvement Act of 1999''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
TITLE I--EXPANDED AVAILABILITY OF HEALTH CARE SERVICES
Sec. 101. Expanding State options under the medicaid program for
workers with disabilities.
Sec. 102. Continuation of medicare coverage for working individuals
with disabilities.
Sec. 103. Grants to develop and establish State infrastructures to
support working individuals with
disabilities.
Sec. 104. Demonstration of coverage under the medicaid program of
workers with potentially severe
disabilities.
TITLE II--TICKET TO WORK AND SELF-SUFFICIENCY AND RELATED PROVISIONS
Subtitle A--Ticket to Work and Self-Sufficiency
Sec. 201. Establishment of the Ticket to Work and Self-Sufficiency
Program.
Subtitle B--Elimination of Work Disincentives
Sec. 211. Work activity standard as a basis for review of an
individual's disabled status.
Sec. 212. Expedited reinstatement of disability benefits.
Subtitle C--Work Incentives Planning, Assistance, and Outreach
Sec. 221. Work incentives outreach program.
Sec. 222. State grants for work incentives assistance to disabled
beneficiaries.
TITLE III--DEMONSTRATION PROJECTS AND STUDIES
Sec. 301. Permanent extension of disability insurance program
demonstration project authority.
Sec. 302. Demonstration projects providing for reductions in disability
insurance benefits based on earnings.
Sec. 303. Studies and reports.
TITLE IV--TECHNICAL AMENDMENTS
Sec. 401. Technical amendments relating to drug addicts and alcoholics.
Sec. 402. Treatment of prisoners.
Sec. 403. Revocation by members of the clergy of exemption from Social
Security coverage.
Sec. 404. Additional technical amendment relating to cooperative
research or demonstration projects under
titles II and XVI.
Sec. 405. Authorization for State to permit annual wage reports.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--Congress makes the following findings:
(1) Health care is important to all Americans.
(2) 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 economically devastating health care costs.
(3) 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 transportation to and from work, reader
services, job coaches, and related assistance) remove many of
the barriers between significant 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.
(4) 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.
(5) Individuals with disabilities who are beneficiaries
under title II or XVI of the Social Security Act (42 U.S.C. 401
et seq., 1381 et seq.) 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.
(6) Currently, less than \1/2\ of 1 percent of social
security disability insurance and supplemental security income
beneficiaries cease to receive benefits as a result of
employment.
(7) Beneficiaries have cited the lack of adequate
employment training and placement services as an additional
barrier to employment.
(8) If an additional \1/2\ of 1 percent of the current
social security disability insurance (DI) and supplemental
security income (SSI) recipients were to cease receiving
benefits as a result of employment, the savings to the Social
Security Trust Funds in cash assistance would total
$3,500,000,000 over the worklife of the individuals.
(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
employment.
(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--EXPANDED AVAILABILITY OF HEALTH CARE SERVICES
SEC. 101. EXPANDING STATE OPTIONS UNDER THE MEDICAID PROGRAM 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:
``(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 and whose assets,
resources, and earned or unearned
income (or both) do not exceed such
limitations (if any) as the State may
establish;''.
(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:
``(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
medically improved disability.--Section 1905 of the
Social Security Act (42 U.S.C. 1396d) is amended by
adding at the end the following:
``(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
section 1902(a)(10)(A)(ii)(XV) because the individual, by
reason of medical improvement, is determined at the time of a
regularly 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
preceding 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:
``(xii) employed individuals with a medically improved
disability (as defined in subsection (v)),''.
(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:
``(g) With respect to individuals provided medical assistance only
under subclause (XV) or (XVI) of section 1902(a)(10)(A)(ii), a State
may (in a uniform manner for individuals described in either such
subclause)--
``(1) 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
``(2) require payment of 100 percent of such premiums in
the case of such an individual who has income that exceeds 250
percent of the income official poverty line (referred to in
subsection (c)(1)) applicable to a family of the size
involved.''.
(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
(18) and inserting ``; or''; and
(B) by inserting after such paragraph the
following:
``(19) with respect to amounts expended for medical
assistance 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
enactment of this paragraph.''.
(b) Conforming Amendments.--
(1) Section 1903(f)(4) of the Social Security Act (42
U.S.C. 1396b(f)(4)) is amended in the matter preceding
subparagraph (A) by inserting ``1902(a)(10)(A)(ii)(XV),
1902(a)(10)(A)(ii)(XVI)'' after ``1902(a)(10)(A)(ii)(X),''.
(2) Section 1903(f)(4) of such Act, as amended by paragraph
(1), is amended by inserting ``1902(a)(10)(A)(ii)(XIII),''
before ``1902(a)(10)(A)(ii)(XV)''.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section apply to medical assistance for
items and services furnished on or after October 1, 1999.
(2) Retroactivity of conforming amendment.--The amendment
made by subsection (b)(2) takes effect as if included in the
enactment of the Balanced Budget Act of 1997.
SEC. 102. CONTINUATION OF MEDICARE COVERAGE FOR WORKING INDIVIDUALS
WITH DISABILITIES.
(a) Continuation of Coverage.--
(1) In general.--Section 226 of the Social Security Act (42
U.S.C. 426) is amended--
(A) in the third sentence of subsection (b), by
inserting ``, except as provided in subsection (j)''
after ``but not in excess of 24 such months''; and
(B) by adding at the end the following:
``(j) The 24-month limitation on deemed entitlement under the third
sentence of subsection (b) shall not apply--
``(1) for months occurring during the 10-year period
beginning with the first month that begins after the date of
enactment of this subsection; and
``(2) for subsequent months, in the case of an individual
who was entitled to benefits under subsection (b) as of the
last month of such 10-year period and would continue (but for
such 24-month limitation) to be so entitled.''.
(2) Conforming amendment.--Section 1818A(a)(2)(C) of the
Social Security Act (42 U.S.C. 1395i-2a(a)(2)(C)) is amended--
(A) by striking ``solely''; and
(B) by inserting ``or the expiration of the last
month of the 10-year period described in section
226(j)'' before the semicolon.
(b) GAO Report.--Not later than 8 years after the date of the
enactment of this Act, the Comptroller General of the United States
shall submit a report to Congress that--
(1) examines the effectiveness and cost of subsection (j)
of section 226 of the Social Security Act (42 U.S.C. 426); and
(2) recommends whether that subsection should continue to
be applied beyond the 10-year period described in the
subsection.
(c) Effective Date.--The amendments made by subsection (a) apply to
months beginning with the first month that begins after the date of the
enactment of this Act.
(d) Treatment of Certain Individuals.--An individual enrolled under
section 1818A of the Social Security Act (42 U.S.C. 1395i-2a) shall be
treated with respect to premium payment obligations under such section
as though the individual had continued to be entitled to benefits under
section 226(b) of such Act for--
(1) months described in section 226(j)(1) of such Act (42
U.S.C. 426(j)(1)) (as added by subsection (a)); and
(2) subsequent months, in the case of an individual who was
so enrolled as of the last month described in section 226(j)(2)
of such Act (42 U.S.C. 426(j)(2)) (as so added).
SEC. 103. GRANTS TO DEVELOP AND ESTABLISH STATE INFRASTRUCTURES TO
SUPPORT WORKING INDIVIDUALS WITH DISABILITIES.
(a) Establishment.--
(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 infrastructures
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
subsection (e), the Secretary shall award grants to States to--
(A) support the establishment, implementation, and
operation of the State infrastructures described in
subsection (a); and
(B) conduct outreach campaigns regarding the
existence of such infrastructures.
(2) Eligibility for grants.--
(A) In general.--No State may receive a grant under
this subsection unless the State--
(i) has an approved amendment to the State
plan under title XIX of the Social Security Act
(42 U.S.C. 1396 et seq.) that provides medical
assistance under such plan to individuals
described in section 1902(a)(10)(A)(ii)(XV) of
the Social Security Act (42 U.S.C.
1396a(a)(10)(A)(ii)(XV)); and
(ii) demonstrates to the satisfaction 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 described in
clause (i) to remain employed (as determined
under section 1905(v)(2) of the Social Security
Act (42 U.S.C. 1396d(v)(2))).
(B) Definition of personal assistance services.--In
this paragraph, the term ``personal assistance
services'' means a range of services, provided by 1 or
more persons, designed to assist an individual with a
disability to perform daily activities on and off the
job that the individual would typically perform if the
individual did not have a disability. Such services
shall be designed to increase the individual'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
Secretary shall determine a formula for awarding grants
to States under this section that provides special
consideration to States that provide medical assistance under title XIX
of the Social Security Act to individuals described in section
1902(a)(10)(A)(ii)(XVI) of that Act (42 U.S.C.
1396a(a)(10)(A)(ii)(XVI)).
(B) Award limits.--
(i) Minimum awards.--
(I) In general.--Subject to
subclause (II), no State with an
approved application under this section
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 minimum
amount described in subclause (I), the
Secretary shall pay each such State an
amount equal to the pro rata share of
the amount made available.
(ii) Maximum awards.--No State with an
application that has been approved under this
section shall receive a grant for a fiscal year
that exceeds 15 percent of the total
expenditures by the State (including the
reimbursed Federal share of such expenditures)
for medical assistance for individuals eligible
under subclause (XV) and (XVI) of section
1902(a)(10)(A)(ii) of the Social Security Act
(42 U.S.C. 1396a(a)(10)(A)(ii)), as estimated
by the State and approved by the Secretary.
(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.
(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 beneficiaries,
as defined in section 1148(k)(3) of the Social Security Act (as amended
by section 201) in the State, and title XVI disability beneficiaries,
as defined in section 1148(k)(4) of the Social Security Act (as so
amended) 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 2000, $20,000,000;
(B) for fiscal year 2001, $25,000,000;
(C) for fiscal year 2002, $30,000,000;
(D) for fiscal year 2003, $35,000,000;
(E) for fiscal year 2004, $40,000,000; and
(F) for each of fiscal years 2005 through 2010, 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, 2009, the Secretary,
in consultation with the Work Incentives Advisory Panel established
under section 201(f), 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 2010.
SEC. 104. DEMONSTRATION OF COVERAGE UNDER THE MEDICAID PROGRAM 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 that provided under section
1905(a) of the Social Security Act (42 U.S.C. 1396d(a)) to individuals
described in section 1902(a)(10)(A)(ii)(XV) of that Act (42 U.S.C.
1396a(a)(10)(A)(ii)(XV)).
(b) Worker With a Potentially Severe Disability Defined.--For
purposes of this section--
(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
Security Act (42 U.S.C. 1396a(a)(1)) to allow for sub-State
demonstrations.
(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) Election of optional category.--The State has
elected to provide coverage under its plan under title
XIX of the Social Security Act of individuals described
in section 1902(a)(10)(A)(ii)(XV) of the Social
Security Act (42 U.S.C. 1396a(a)(10)(A)(ii)(XV)).
(B) Maintenance of state effort.--Federal funds
paid to a State pursuant to this section must be used
to supplement, but not 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.
(C) 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) for fiscal year 2000,
$70,000,000;
(II) for fiscal year 2001,
$73,000,000;
(III) for fiscal year 2002,
$77,000,000; and
(IV) for fiscal year 2003,
$80,000,000.
(ii) Budget authority.--Clause (i)
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 clause (i).
(B) Limitation on payments.--In no case may--
(i) the aggregate amount of payments made
by the Secretary to States under this section
exceed $300,000,000; or
(ii) payments be provided by the Secretary
for a fiscal year after fiscal year 2005.
(C) Funds allocated to states.--The Secretary shall
allocate funds to States based on their applications
and the availability of funds. Funds allocated to a
State under a grant made under this section for a
fiscal year shall remain available until expended.
(D) Funds not allocated to states.--Funds not
allocated to States in the fiscal year for which they
are appropriated shall remain available in succeeding
fiscal years for allocation by the Secretary using the
allocation formula 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) Recommendation.--Not later than October 1, 2002, the Secretary
shall submit a recommendation to the Committee on Commerce of the House
of Representatives and the Committee on Finance of the Senate regarding
whether the demonstration project established under this section should
be continued after fiscal year 2003.
(e) 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.).
TITLE II--TICKET TO WORK AND SELF-SUFFICIENCY AND RELATED PROVISIONS
Subtitle A--Ticket to Work and Self-Sufficiency
SEC. 201. ESTABLISHMENT OF THE TICKET TO WORK AND SELF-SUFFICIENCY
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 after section 1147 (as added
by section 8 of the Noncitizen Benefit Clarification and Other
Technical Amendments Act of 1998 (Public Law 105-306; 112 Stat. 2928))
the following:
``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 the beneficiary.
``(b) Ticket System.--
``(1) Distribution of tickets.--The Commissioner may issue
a ticket to work and self-sufficiency to disabled beneficiaries
for participation in the Program.
``(2) Assignment of tickets.--A disabled beneficiary
holding a ticket to work and self-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
beneficiary.
``(4) Payments to employment networks.--The Commissioner
shall pay an employment network under the Program in accordance
with the outcome payment system under subsection (h)(2) or
under the outcome-milestone payment system under subsection
(h)(3) (whichever is elected pursuant to subsection (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 may elect to
participate in the Program as an employment 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 participate 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 (and revocations).
``(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 to work and self-sufficiency, are
provided to disabled beneficiaries 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.
``(B) State agencies administering maternal and
child health services programs.--Subparagraph (A) shall
not apply with respect to any State agency
administering a program under title V of this Act.
``(3) Special requirements applicable to cross-referral to
certain state agencies.--
``(A) In general.--In any case in which an
employment network has been assigned a ticket to work
and self-sufficiency by a disabled beneficiary, no
State agency shall be deemed required, under this
section, title I of the Workforce Investment Act of
1998, title I of the Rehabilitation Act of 1973, or a
State plan approved under such title, to accept any
referral of such disabled beneficiary from such
employment network unless such employment network and
such State agency have entered into a written agreement
that meets the requirements of subparagraph (B). Any
beneficiary who has assigned a ticket to work and self-
sufficiency to an employment network that has not
entered into such a written agreement with such a State
agency may not access vocational rehabilitation
services under title I of the Rehabilitation Act of
1973 until such time as the beneficiary is reassigned
to a State vocational rehabilitation agency by the
Program Manager.
``(B) Terms of agreement.--An agreement required by
subparagraph (A) shall specify, in accordance with
regulations prescribed pursuant to subparagraph (C)--
``(i) the extent (if any) to which the
employment network holding the ticket will
provide to the State agency--
``(I) reimbursement for costs
incurred in providing services
described in subparagraph (A) to the
disabled beneficiary; and
``(II) other amounts from payments
made by the Commissioner to the
employment network pursuant to
subsection (h); and
``(ii) any other conditions that may be
required by such regulations.
``(C) Regulations.--The Commissioner and the
Secretary of Education shall jointly prescribe
regulations specifying the terms of agreements required
by subparagraph (A) and otherwise necessary to carry
out the provisions of this paragraph.
``(D) Penalty.--No payment may be made to an
employment network pursuant to subsection (h) in
connection with services provided to any disabled
beneficiary if such employment network makes referrals
described in subparagraph (A) in violation of the terms
of the agreement required under subparagraph (A) or
without having entered into such an agreement.
``(d) Responsibilities of the Commissioner.--
``(1) Selection and qualifications of program managers.--
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 available expertise and
experience in the field of vocational rehabilitation and
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
Commissioner.
``(3) Preclusion from direct participation in delivery of
services in own service area.--Agreements under paragraph (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
shall be in addition to State agencies serving as
employment 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
enactment of this section and chooses to serve as an
employment network under the Program.
``(5) Termination of agreements with employment networks.--
The Commissioner shall terminate agreements with employment
networks for inadequate performance, as determined by the
Commissioner.
``(6) Quality assurance.--The Commissioner shall provide
for such periodic reviews as are necessary to provide for
effective quality assurance in the provision of services by
employment 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
providers of services to develop performance measurements. The
Commissioner shall ensure that the results of the periodic
reviews are made available to beneficiaries who are prospective
service recipients as they select employment networks. The
Commissioner shall ensure that the periodic surveys of
beneficiaries receiving services under the Program are designed
to measure customer service satisfaction.
``(7) Dispute resolution.--The Commissioner shall provide
for a mechanism for resolving disputes between beneficiaries
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
Program. 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.
Employment 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 agreement and this
section. The program manager shall not impose numerical limits
on the number of employment networks to be recommended pursuant
to this paragraph.
``(3) Facilitation of access by beneficiaries to employment
networks.--A program manager shall facilitate access by
beneficiaries to employment networks. The program manager shall
ensure that each beneficiary is allowed changes in employment
networks for good cause, as determined by the Commissioner,
without being deemed to have rejected services under the
Program. The program manager shall establish and maintain lists
of employment networks available to beneficiaries and shall
make such lists generally available to the public. The program
manager shall ensure that all information provided to disabled
beneficiaries pursuant to this paragraph is provided in
accessible formats.
``(4) Ensuring availability of adequate services.--The
program manager shall ensure that employment services,
vocational rehabilitation services, and other support services
are provided to beneficiaries throughout the geographic area
covered under the program manager's agreement, including rural
areas.
``(5) Reasonable access to services.--The program manager
shall take such measures as are necessary to ensure that
sufficient employment networks are available and that each
beneficiary receiving services under the Program has reasonable
access to employment services, vocational rehabilitation
services, and other support services. Services provided under
the Program may include case management, work incentives
planning, supported employment, career planning, career plan
development, vocational assessment, job training, placement,
followup 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
instrumentality 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.
``(C) Compliance with selection criteria.--No
employment network may serve under the Program unless
it meets and maintains compliance with both general
selection criteria (such as professional and
educational qualifications (where applicable)) and
specific selection criteria (such as substantial expertise and
experience in providing relevant employment services and supports).
``(D) Single or associated providers allowed.--An
employment network shall consist of either a single
provider 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 Commissioner to--
``(A) serve prescribed service areas; and
``(B) take such measures as are necessary to ensure
that employment services, vocational rehabilitation
services, and other support services provided under the
Program by, or under agreements entered into with, the
employment network are provided under appropriate
individual work plans meeting the requirements of
subsection (g).
``(3) Annual financial reporting.--Each employment network
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 employment
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 maintained
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
services, and other support services provided under the
Program by, or under agreements entered into with, the
employment network are provided under appropriate
individual work plans that meet the requirements of
subparagraph (C);
``(B) develop and implement each such individual
work plan in partnership with each beneficiary
receiving such services in a manner that affords the
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--
``(i) a statement of the vocational goal
developed with the beneficiary;
``(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
beneficiary's ticket to work and self-sufficiency.
``(h) Employment Network Payment Systems.--
``(1) Election of payment system by employment networks.--
``(A) In general.--The Program shall provide for
payment authorized by the Commissioner to employment
networks under either an outcome payment system or an
outcome-milestone payment system. Each employment
network 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 subparagraph (B)).
``(B) No change in method of payment for
beneficiaries with tickets already assigned to the
employment 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 services from the employment
network at the time of the election 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.--
``(A) In general.--The outcome payment system shall
consist of a payment structure governing employment
networks 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
network.--The payment schedule of the outcome payment
system shall be designed so that--
``(i) the payment for each of the 60 months
during the outcome payment period for which
benefits (described in paragraphs (3) and (4)
of subsection (k)) are not payable 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
paragraph (1)(A) which meets the requirements of this
paragraph.
``(B) Early payments upon attainment of milestones
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
employment. 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
Commissioner 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 beneficiary, the average disability
insurance benefit payable under section 223 for
all beneficiaries for months during the
preceding calendar year; and
``(ii) in connection with a title XVI
disability beneficiary (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 beneficiaries who have attained age 18 but
have not attained age 65.
``(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 payable 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 benefits 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
paragraph (2)(C), the total payments permissible under
paragraph (3)(C), and the period of time specified in
paragraph (4)(B) to determine whether such percentages,
such permissible payments, and such period provide an
adequate incentive for employment networks to assist
beneficiaries to enter the workforce, while providing
for appropriate economies. 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
employment networks to assist beneficiaries to enter
the workforce, taking into account information provided
to the Commissioner by program managers, the Work
Incentives Advisory Panel established under section
201(f) of the Work Incentives Improvement Act of 1999,
and other reliable sources. The Commissioner 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 would
allow an adequate incentive for employment networks to
assist beneficiaries to enter the workforce. Such
alteration shall be based on information provided to
the Commissioner by program managers, the Work
Incentives Advisory Panel established under section
201(f) of the Work Incentives Improvement Act of 1999,
or other reliable sources.
``(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 initiate 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) Allocation of Costs.--
``(1) Payments to employment networks.--Payments to
employment networks (including State agencies that elect to
participate in the Program as an employment network) shall be
made from the Federal Old-Age and Survivors Insurance Trust
Fund or the Federal Disability Insurance Trust Fund, as
appropriate, in the case of ticketed title II disability
beneficiaries who return to work, or from the appropriation
made available for making supplemental security income payments
under title XVI, in the case of title XVI disability
beneficiaries who return to work. With respect to ticketed
beneficiaries who concurrently are entitled to benefits under
title II and eligible for payments under title XVI who return
to work, the Commissioner shall allocate the cost of payments
to employment networks to which the tickets of such
beneficiaries have been assigned among such Trust Funds and
appropriation, as appropriate.
``(2) Administrative expenses.--The costs of administering
this section (other than payments to employment networks) 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.
``(k) Definitions.--In this section:
``(1) Commissioner.--The term `Commissioner' means the
Commissioner of Social Security.
``(2) Disabled beneficiary.--The term `disabled
beneficiary' 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 disability 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 under title
xvi.--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
enactment of this section, the Commissioner shall prescribe such
regulations as are necessary to carry out the provisions of this
section.
``(m) Reauthorization of Program.--
``(1) In general.--The Program established under this
section shall terminate on the date that is 5 years after the
date that the Commissioner commences implementation of the
Program.
``(2) Assurance of outcome payment period.--Notwithstanding
paragraph (1)--
``(A) any individual who has initiated a work plan
in accordance with subsection (g) may use services
provided under the Program in accordance with this
section; and
``(B) any employment network that provides services
to such an individual shall receive payments for such
services,
during the individual's outcome payment period (as defined in
paragraph (4)(B) of subsection (h), including any alteration of
such period in accordance with paragraph (5) of that
subsection).''.
(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:
``(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 the Social Security Act (42
U.S.C. 422(a)) is repealed.
(C) Section 222(b) of the Social Security Act (42
U.S.C. 422(b)) is repealed.
(D) Section 225(b)(1) of the Social Security Act
(42 U.S.C. 425(b)(1)) is amended by striking ``a
program of vocational rehabilitation services'' and
inserting ``a program consisting of the Ticket to Work
and Self-Sufficiency Program under section 1148 or
another program of vocational rehabilitation services,
employment services, or other support services''.
(2) Amendments to title xvi.--
(A) Section 1615(a) of the Social Security Act (42
U.S.C. 1382d(a)) is amended to read as follows:
``Sec. 1615. (a) In the case of any blind or disabled individual
who--
``(1) has not attained age 16, and
``(2) with respect to whom benefits are paid under this
title,
the Commissioner of Social Security shall make provision for referral
of such individual to the appropriate State agency administering the
State program under title V.''.
(B) Section 1615(c) of the Social Security Act (42
U.S.C. 1382d(c)) is repealed.
(C) Section 1631(a)(6)(A) of the Social Security
Act (42 U.S.C. 1383(a)(6)(A)) is amended by striking
``a program of vocational rehabilitation services'' and
inserting ``a program consisting of the Ticket to Work
and Self-Sufficiency Program under section 1148 or
another program of vocational rehabilitation services,
employment services, or other support services''.
(D) Section 1633(c) of the Social Security Act (42
U.S.C. 1383b(c)) is amended--
(i) by inserting ``(1)'' after ``(c)''; and
(ii) by adding at the end the following:
``(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 amendments made
by subsections (a) and (b) shall take effect with the first month
following 1 year after the date of enactment of this Act.
(d) Graduated Implementation of Program.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Commissioner of Social Security
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
paragraphs (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.
(3) Full implementation.--The Commissioner shall ensure
that the 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 design and
conduct a series of evaluations to assess the cost-
effectiveness of activities carried out under this
section and the amendments made thereby, 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.--The Commissioner shall design
and carry out the series of evaluations 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 consulting with
the Work Incentives Advisory Panel established under
section 201(f), the Comptroller General of the United
States, other agencies of the Federal Government, and
private organizations with appropriate expertise.
(C) Methodology.--
(i) Implementation.--The Commissioner, in
consultation with the Work Incentives Advisory
Panel established under section 201(f), shall
ensure that plans for evaluations and data
collection methods under the Program are
appropriately 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, vocational 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, vocational 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
services;
(V) the employment outcomes,
including wages, occupations, benefits,
and hours worked, of beneficiaries who
return to work after receiving tickets
under the Program and those who return
to work without receiving such tickets;
(VI) the characteristics of
providers whose services are provided
within an employment network under the
Program;
(VII) the extent (if any) to which
employment networks display a greater
willingness to provide services to
beneficiaries with a range of
disabilities;
(VIII) the characteristics
(including employment outcomes) of
those beneficiaries who receive
services under the outcome payment
system and of those beneficiaries who
receive services under the outcome-
milestone payment system;
(IX) measures of satisfaction among
beneficiaries in receipt of tickets
under the Program; and
(X) 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 Committee on Finance of the Senate a report
containing the Commissioner's evaluation of the
progress of activities conducted under the provisions
of this section and the amendments made thereby. Each
such report shall set forth the Commissioner's
evaluation of the extent to which the Program has been
successful and the Commissioner's conclusions on
whether or how the Program should be modified. Each
such report shall include such data, findings,
materials, and recommendations as the Commissioner may
consider 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
Commissioner shall determine by regulation the extent
to which--
(i) the requirement under section 222(a) of
the Social Security Act for prompt referrals to
a State agency, and
(ii) the authority of the Commissioner
under section 222(d)(2) of the Social Security
Act to provide 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.
(B) Existing agreements.--Nothing in subparagraph
(A) or the amendments made by subsection (a) shall be
construed to limit, impede, or otherwise affect any
agreement entered into pursuant to section 222(d)(2) of
the Social Security Act before the date of enactment of
this Act with respect to services provided 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
governing 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-
Sufficiency Program (and revoke such an election)
pursuant to section 1148(c)(1) of the Social Security
Act and provision for periodic opportunities for
exercising such elections (and revocations);
(D) the status of State agencies under section
1148(c)(1) at the time that State agencies exercise
elections (and revocations) under that section;
(E) the terms of agreements to be entered into with
program managers pursuant to section 1148(d) of the
Social Security Act, including--
(i) the terms by which program managers are
precluded from direct participation in the
delivery of services pursuant to section
1148(d)(3) of the Social Security Act;
(ii) standards which must be met by quality
assurance measures referred to in paragraph (6)
of section 1148(d) and methods of recruitment
of employment networks utilized pursuant to
paragraph (2) of section 1148(e); and
(iii) the format under which dispute
resolution will operate under section
1148(d)(7);
(F) the terms of agreements to be entered into with
employment networks pursuant to section 1148(d)(4) of
the Social Security Act, including--
(i) the manner in which service areas are
specified pursuant to section 1148(f)(2)(A) of
the Social Security Act;
(ii) the general selection criteria and the
specific selection criteria which are
applicable to employment networks under section
1148(f)(1)(C) of the Social Security Act in
selecting service providers;
(iii) specific requirements relating to
annual financial reporting by employment
networks pursuant to section 1148(f)(3) of the
Social Security Act; and
(iv) the national model to which periodic
outcomes reporting by employment networks must
conform under section 1148(f)(4) of the Social
Security Act;
(G) standards which must be met by individual work
plans pursuant to section 1148(g) of the Social
Security Act;
(H) standards which must be met by payment systems
required under section 1148(h) of the Social Security
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);
(ii) the terms which must be met by an
outcome payment system under section
1148(h)(2);
(iii) the terms which must be met by an
outcome-milestone payment system under section
1148(h)(3);
(iv) any revision of the percentage
specified in paragraph (2)(C) of section
1148(h) of the Social Security Act or the
period of time specified in paragraph (4)(B) of
such section 1148(h); 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) Work Incentives Advisory Panel.--
(1) Establishment.--There is established within the Social
Security Administration a panel to be known as the ``Work
Incentives Advisory Panel'' (in this subsection referred to as
the ``Panel'').
(2) Duties of panel.--It shall be the duty of the Panel
to--
(A) advise the Secretary of Health and Human
Services, the Secretary of Labor, the Secretary of
Education, and the Commissioner of Social Security on
issues related to work incentives programs, planning,
and assistance for individuals 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-
Sufficiency Program established under section 1148 of
the Social Security 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 employment
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;
(iii) advise the Commissioner on the
development of performance measurements
relating to quality assurance 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 appointed by the Commissioner of
Social Security in consultation with the Speaker of the
House of Representatives, the Minority Leader of the
House of Representatives, the Majority Leader of the
Senate, and the Minority Leader of the Senate.
(B) Representation.--All members appointed to the
Panel shall have experience or expert knowledge in the
fields of, or related to, work incentive programs,
employment services, vocational rehabilitation
services, health care services, and other support
services for individuals with disabilities. At least 7
members of the Panel shall be individuals with
disabilities or representatives of individuals with
disabilities, except that, of those 7 members, at least
5 members shall be 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 enactment of this Act.
(ii) Terms of initial appointees.--As
designated by the Commissioner at the time of
appointment, of the members first appointed--
(I) 6 of the members appointed
under subparagraph (A) shall be
appointed for a term of 2 years; and
(II) 6 of the members appointed
under subparagraph (A) shall be
appointed for a term of 4 years.
(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 member'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 established under section 7 of the Federal
Advisory Committee Act (5 U.S.C. App.).
(E) Travel expenses.--Each member shall receive
travel expenses, including per diem in lieu of
subsistence, in accordance with sections 5702 and 5703
of title 5, United States Code.
(F) Quorum.--Eight members of the Panel shall
constitute a quorum but a lesser number may hold
hearings.
(G) Chairperson.--The Chairperson of the Panel
shall be designated by the Commissioner. The term of
office of the Chairperson shall be 4 years.
(H) Meetings.--The Panel shall meet at least
quarterly and at other times at the call of the
Chairperson or a majority of its members.
(4) Director and staff of panel; experts and consultants.--
(A) Director.--The Panel shall have a Director who
shall be appointed by the Commissioner and paid at a
rate, and in a manner, that is consistent with
guidelines established under section 7 of the Federal
Advisory Committee Act (5 U.S.C. App.).
(B) Staff.--Subject to rules prescribed by the
Commissioner, the Director may appoint and fix the pay
of additional personnel as the Director considers
appropriate.
(C) Experts and consultants.--Subject to rules
prescribed by the Commissioner, 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 subsection.
(5) Powers of panel.--
(A) Hearings and sessions.--The Panel may, for the
purpose of carrying out its duties under this
subsection, hold such hearings, sit and act at such
times and places, and take such testimony and evidence
as the Panel considers appropriate.
(B) Powers of members and agents.--Any member or
agent of the Panel may, if authorized by the Panel,
take any action which the Panel is authorized to take
by this subsection.
(C) Mails.--The Panel may use the United States
mails in the same manner and under the same conditions
as other departments and agencies of the United States.
(6) Reports.--
(A) Interim reports.--The Panel shall submit to the
President and Congress interim reports at least
annually.
(B) Final report.--The Panel shall transmit a final
report to the President and Congress not later than 8
years after the date of enactment of this Act. The
final report shall contain a detailed statement of the
findings and conclusions of the Panel, together with
its 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) Allocation of costs.--The costs of carrying out this
subsection shall be paid from amounts made available for the
administration of title II of the Social Security Act (42
U.S.C. 401 et seq.) and amounts made available for the
administration of title XVI of that Act (42 U.S.C. 1381 et
seq.), and shall be allocated among those amounts as
appropriate.
Subtitle B--Elimination of Work Disincentives
SEC. 211. WORK ACTIVITY STANDARD AS A BASIS FOR REVIEW OF AN
INDIVIDUAL'S DISABLED STATUS.
Section 221 of the Social Security Act (42 U.S.C. 421) is amended
by adding at the end the following:
``(m)(1) In any case where an individual entitled to disability
insurance benefits under section 223 or to monthly insurance benefits
under section 202 based on such individual's disability (as defined in
section 223(d)) has received such benefits for at least 24 months--
``(A) no continuing disability review conducted by the
Commissioner may be scheduled for the 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
substantial gainful activity.''.
SEC. 212. EXPEDITED REINSTATEMENT OF DISABILITY BENEFITS.
(a) OASDI Benefits.--Section 223 of the Social Security Act (42
U.S.C. 423) is amended--
(1) by redesignating subsection (i) as subsection (j); and
(2) by inserting after subsection (h) the following:
``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 paragraph (2)(A)
during the period prescribed in subparagraph (C). Reinstatement of such
entitlement shall be in accordance with the terms of this subsection.
``(B) An individual is described in this subparagraph if--
``(i) prior to the month in which the individual files a
request for reinstatement--
``(I) the individual was entitled to benefits under
this section or section 202 on the basis of disability
pursuant to an application filed therefore; and
``(II) such entitlement terminated due to the
performance of substantial gainful activity;
``(ii) the individual is under a disability and the
physical or mental impairment that is the basis for the finding
of disability is the same as (or related to) the physical or
mental impairment that was the basis for the finding of
disability that gave rise to the entitlement described in
clause (i); and
``(iii) the individual's disability renders the 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
declarations 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 requirements
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 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 individual's
disability shall be the date of onset used in determining the
individual's most recent period of disability arising in connection
with such benefits payable on the basis of an application.
``(iii) Benefits under this section or section 202 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) 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 benefits
payable on the basis of such individual's wages and self-employment
income may be reinstated with respect to any person previously 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 accordance with subsection
(a)(1) of this section, or subsection (d)(1), (e)(1), or (f)(1) of
section 202, to be entitled to such benefits on the basis of an
application filed therefore.
``(7)(A) An individual described in paragraph (1)(B) who files a
request for reinstatement in accordance with the provisions of
paragraph (2)(A) shall be entitled to provisional benefits payable in
accordance with this paragraph, unless the Commissioner determines that
the individual does not meet the requirements of paragraph (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 subsection (b) or (g) of section 205.
``(B) The amount of a provisional benefit for a month shall equal
the amount of the last monthly benefit payable to the individual under
this title on the basis of an 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
determination 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
substantial gainful activity; or
``(IV) the month in which the Commissioner determines that
the individual does not meet the requirements of paragraph
(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:
``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 therefore;
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
blindness or disability is the same as (or related to) the
physical or mental impairment that was the basis for the
finding of blindness or disability that gave rise to the
eligibility described in clause (i);
``(iii) the individual's blindness or disability 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
declarations 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 requirements
of paragraph (1)(B)(ii), the provisions of section 1614(a)(4) shall
apply.
``(4)(A) Eligibility for benefits reinstated under this subsection
shall commence with the benefit payable for the month following the
month in which a request for 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 provisions 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 conditions
as eligibility established pursuant to an application filed therefore.
``(5) Whenever an individual's eligibility for benefits under this
title is reinstated under this subsection, 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 satisfies
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 eligibility of
such individual.
``(6) An individual to whom benefits are payable under this title
pursuant to a reinstatement of eligibility under this subsection for
twenty-four months (whether or not consecutive) shall, with respect to
benefits so payable after such twenty-fourth month, be deemed for
purposes of paragraph (1)(B)(i)(I) to be eligible for such benefits on
the basis of an application filed therefore.
``(7)(A) An individual described in paragraph (1)(B) who files a
request for reinstatement in accordance with the provisions of
paragraph (2)(A) shall be eligible for provisional benefits payable in
accordance with this paragraph, unless the Commissioner determines that
the individual does not meet the requirements of paragraph (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 Commissioner
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 month benefit that would be payable to an eligible individual
and eligible spouse under this title with the same kind and amount of
income.
``(C)(i) Provisional benefits shall begin with the month following
the month in which a request for 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
determination regarding the individual's eligibility for
reinstated benefits;
``(II) the fifth month following the month for which
provisional benefits are first payable under clause (i); or
``(III) the month in which the Commissioner determines that
the individual does not meet the requirements of paragraph
(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) or section 212(b)
of Public Law 93-66.''.
(2) Conforming amendments.--
(A) Section 1631(j)(1) of such Act (42 U.S.C.
1383(j)(1)) is amended by striking the period and
inserting ``, or has filed a request for reinstatement
of eligibility under subsection (p)(2) and been
determined to be eligible for 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.--
(1) In general.--The amendments made by this section shall
take effect on the first day of the thirteenth month beginning
after the date of enactment of this Act.
(2) Limitation.--No benefit shall be payable under title II
or XVI of the Social Security Act on the basis of a request for
reinstatement filed under section 223(i) or 1631(p) of such Act
before the effective date described in paragraph (1).
Subtitle C--Work Incentives Planning, Assistance, and Outreach
SEC. 221. WORK INCENTIVES OUTREACH PROGRAM.
Part A of title XI of the Social Security Act (42 U.S.C. 1301 et
seq.), as amended by section 201, is amended by adding after section
1148 the following:
``work incentives outreach program
``Sec. 1149. (a) Establishment.--
``(1) In general.--The Commissioner, in consultation with
the Work Incentives Advisory Panel established under section
201(f) of the Work Incentives Improvement Act of 1999, shall
establish a community-based work incentives planning and
assistance program for the purpose of disseminating accurate
information to disabled beneficiaries on work incentives
programs and issues related to such programs.
``(2) Grants, cooperative agreements, contracts, and
outreach.--Under the program established under this section,
the Commissioner shall--
``(A) establish a competitive program of grants,
cooperative agreements, or contracts to provide
benefits planning and assistance, including information
on the availability of protection and advocacy
services, to disabled beneficiaries, 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 disabled beneficiaries (and to the families
of such beneficiaries) who are potentially eligible to
participate in Federal 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
rehabilitation and work-related training and
counseling;
``(C) establish a corps of trained, accessible, and
responsive work incentives specialists within the
Social Security Administration who will specialize in
disability work incentives under titles II and XVI for
the purpose of disseminating 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 entities that are designed to
encourage disabled beneficiaries to return to
work.
``(3) Coordination with other programs.--The
responsibilities of the Commissioner established under this
section shall be coordinated with other public and private
programs that provide information and assistance regarding
rehabilitation services and independent living supports and
benefits planning for disabled beneficiaries including the
program under section 1619, the plans for achieving self-
support program (PASS), and any other Federal or State work
incentives programs that are designed to assist disabled
beneficiaries, including educational agencies that provide
information and assistance 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, and other services.
``(b) Conditions.--
``(1) Selection of entities.--
``(A) Application.--An entity shall submit an
application for a grant, cooperative agreement, or
contract to provide benefits planning and assistance to
the Commissioner at such time, in such manner, and
containing such information as the Commissioner may
determine is necessary 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
organizations.--
``(i) In general.--The Commissioner may
award a grant, cooperative agreement, or
contract under this section to a State or a
private agency or organization (other than
Social Security Administration Field Offices
and the State agency administering the State
medicaid program under title XIX, including any
agency or entity described in clause (ii), that
the Commissioner determines is qualified to
provide the planning, assistance, and
information described in paragraph (2)).
``(ii) Agencies and entities described.--
The agencies and entities described in this
clause are the following:
``(I) Any public or private agency
or organization (including Centers for
Independent Living established under title VII of the Rehabilitation
Act of 1973, protection and advocacy organizations, client assistance
programs established in accordance with section 112 of the
Rehabilitation Act of 1973, and State Developmental Disabilities
Councils established in accordance with section 124 of the
Developmental Disabilities Assistance and Bill of Rights Act (42 U.S.C.
6024)) that the Commissioner determines satisfies the requirements of
this section.
``(II) The State agency
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
agreement, or contract under this section to any entity
that the Commissioner determines would have a conflict
of interest if the entity were to receive a grant,
cooperative agreement, or contract under this section.
``(2) Services provided.--A recipient of a grant,
cooperative agreement, or contract to provide benefits planning
and assistance shall select 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 participate 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
beneficiaries.--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.
``(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
beneficiary' has the meaning given that term in section
1148(k)(2).''.
SEC. 222. STATE GRANTS FOR WORK INCENTIVES ASSISTANCE TO DISABLED
BENEFICIARIES.
Part A of title XI of the Social Security Act (42 U.S.C. 1301 et
seq.), as amended by section 221, is amended by adding after section
1149 the following:
``state grants for work incentives assistance to disabled beneficiaries
``Sec. 1150. (a) In General.--Subject to subsection (c), the
Commissioner may make payments in each State to the protection and
advocacy system established 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
beneficiaries 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 application
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
protection 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.
``(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 paragraph (1) by a
percentage equal to the percentage increase in the total amount
appropriated to carry out this section between the preceding fiscal
year and the fiscal year involved.
``(e) Annual Report.--Each protection and advocacy system that
receives a payment under this section shall submit an annual report to
the Commissioner and the Work Incentives Advisory Panel established
under section 201(f) of the Work Incentives Improvement Act of 1999 on
the services provided to individuals by the system.
``(f) Funding.--
``(1) Allocation of payments.--
``(A) In general.--Subject to subparagraph (B),
payments under this section 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.
``(B) Limitation.--Payments under this section
shall not exceed $7,000,000 for fiscal year 2000, and
such sums as may be necessary for any fiscal year
thereafter.
``(2) Carryover.--Any amounts allotted for payment to a
protection and advocacy system under this section for a fiscal
year shall remain available for payment to or on behalf of the
protection and advocacy system until the end of the succeeding
fiscal year.
``(g) Definitions.--In this section:
``(1) Commissioner.--The term `Commissioner' means the
Commissioner of Social Security.
``(2) Disabled beneficiary.--The term `disabled
beneficiary' has the meaning given that term in section
1148(k)(2).
``(3) Protection and advocacy system.--The term `protection
and advocacy system' means a protection and advocacy system
established pursuant to part C of title I of the Developmental
Disabilities Assistance and Bill of Rights Act (42 U.S.C. 6041
et seq.).''.
TITLE III--DEMONSTRATION PROJECTS AND STUDIES
SEC. 301. PERMANENT EXTENSION OF DISABILITY INSURANCE PROGRAM
DEMONSTRATION PROJECT AUTHORITY.
(a) Permanent Extension of Authority.--Title II of the Social
Security Act (42 U.S.C. 401 et seq.) is amended by adding at the end
the following:
``demonstration project authority
``Sec. 234. (a) Authority.--
``(1) In general.--The Commissioner of 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 benefits 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 individuals for
rehabilitation, and greater use of employers and others
to develop, perform, and otherwise stimulate new forms
of rehabilitation); and
``(C) implementing sliding scale benefit 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
administration of this title.
``(2) Authority for expansion of scope.--The Commissioner
may expand the scope of any such experiment or demonstration
project to include any group of applicants for benefits under
the program established under this title with impairments that
reasonably may be presumed to be disabling for purposes of such
demonstration project, and may limit any such demonstration
project to any such group of applicants, subject to the terms
of such demonstration project which shall define the extent of
any such presumption.
``(b) Requirements.--The experiments and 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 program to the adoption of any
particular system either locally or nationally.
``(c) Authority To Waive Compliance With Benefits Requirements.--In
the case of any experiment or demonstration project conducted under
subsection (a), the Commissioner may waive compliance with the benefit
requirements of 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 complete description
thereof, has been transmitted by the Commissioner to the Committee on
Ways and Means of the House of Representatives and to the Committee on
Finance of the Senate. Periodic reports on the progress of such
experiments and demonstration projects shall be submitted by the
Commissioner to such committees. When appropriate, such reports shall
include detailed recommendations for changes in administration or law,
or both, to carry out the objectives stated in subsection (a).
``(d) Reports.--
``(1) Interim reports.--On or before June 9 of each year,
the Commissioner shall submit to the Committee on Ways and
Means of the House of Representatives and to the Committee on
Finance of the Senate an interim report on the progress of the
experiments and demonstration projects carried out under this
subsection together with any related data and materials that
the Commissioner may consider appropriate.
``(2) Final reports.--Not later than 90 days after the
termination of any experiment or demonstration project carried
out under this section, the Commissioner shall submit to the
Committee on Ways and Means of the House of Representatives and
to the Committee on Finance of the Senate a final report with
respect to that experiment and demonstration project.''.
(b) Conforming Amendments; Transfer of Prior Authority.--
(1) Conforming amendments.--
(A) Repeal of prior authority.--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 enactment of this
Act, the authority to conduct such experiment or demonstration
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 conduct
demonstration projects for the purpose of evaluating, through the
collection of data, a program for title II disability beneficiaries (as
defined in section 1148(k)(3) of the Social Security Act) under which
each $1 of benefits payable under section 223, or under section 202
based on the beneficiary's disability, is reduced for each $2 of such
beneficiary's earnings that is above a level to be determined by the
Commissioner. Such projects shall be conducted at a number of
localities which the Commissioner shall determine is sufficient to
adequately evaluate the appropriateness of national implementation of
such a program. Such projects shall identify reductions in Federal
expenditures that may result from the permanent implementation of such
a program.
(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.
The Commissioner shall take into account advice provided by the
Work Incentives Advisory Panel pursuant to section
201(f)(2)(B)(ii).
(2) Additional matters.--The Commissioner shall also
determine with respect to each project--
(A) the annual cost (including net cost) of the
project and the annual cost (including net cost) that
would have been incurred in the 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,
occupations, benefits, and hours worked, of
beneficiaries who return to work as a result of
participation in the project.
The Commissioner may include within the matters evaluated under
the project the merits of trial work periods and periods of
extended eligibility.
(c) Waivers.--The Commissioner may waive compliance with the
benefit provisions of title II of the Social Security Act, and the
Secretary of Health and Human Services may waive compliance with the
benefit requirements of title XVIII of that Act, insofar as is
necessary for a thorough evaluation of the alternative methods under
consideration. No such project shall be actually placed in operation
unless at least 90 days prior thereto a written report, prepared for
purposes of notification and information only and containing a full and
complete description thereof, has been transmitted by the Commissioner
to the Committee on Ways and Means of the House of Representatives and
to the Committee on Finance of the Senate. Periodic reports on the
progress of such projects shall be submitted by the Commissioner to
such committees. When appropriate, such reports shall include detailed
recommendations for changes in administration or law, or both, to carry
out the objectives stated in subsection (a).
(d) Interim Reports.--Not later than 2 years after the date of
enactment of this Act, and annually thereafter, the Commissioner of
Social Security shall submit to 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 Congress a final report with respect to all demonstration projects
carried out under this section not later than 1 year after their
completion.
(f) Expenditures.--Expenditures made for demonstration projects
under this section shall be made from the Federal Disability Insurance
Trust Fund and the Federal Old-Age and Survivors Insurance Trust Fund,
as determined appropriate by the Commissioner 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.--
(1) Study.--As soon as practicable after the date of
enactment of this Act, the Comptroller General of the United
States shall undertake a study to assess existing tax credits
and other disability-related employment incentives under the
Americans with Disabilities Act of 1990 and other Federal laws.
In such study, the Comptroller General shall specifically
address the extent to which such credits and other incentives
would encourage employers to hire and retain individuals with
disabilities.
(2) Report.--Not later than 3 years after the date of
enactment of this Act, the Comptroller General shall transmit
to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate a
written report presenting the results of the Comptroller
General's study conducted pursuant to this subsection, together
with such recommendations for legislative or administrative
changes as the Comptroller General determines are appropriate.
(b) Study by General Accounting Office of Existing Coordination of
the DI and SSI Programs as They Relate to Individuals Entering or
Leaving Concurrent Entitlement.--
(1) Study.--As soon as practicable after the date of
enactment of this Act, the Comptroller General of the United
States shall undertake a study to evaluate the coordination
under current law of the disability insurance program under
title II of the Social Security Act and the supplemental
security income program under title XVI of that Act, as such
programs relate to individuals entering or leaving concurrent
entitlement under such programs. In such study, the Comptroller
General shall specifically address the effectiveness of work
incentives under such programs with respect to such individuals
and the effectiveness of coverage of such individuals under
titles XVIII and XIX of the Social Security Act.
(2) Report.--Not later than 3 years after the date of
enactment of this Act, the Comptroller General shall transmit
to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate a
written report presenting the results of the Comptroller
General's study conducted pursuant to this subsection, together
with such recommendations for legislative or administrative
changes as the Comptroller General determines are appropriate.
(c) Study by General Accounting Office of the Impact of the
Substantial Gainful Activity Limit on Return to Work.--
(1) Study.--As soon as practicable after the date of
enactment of this Act, the Comptroller General of the United
States shall undertake a study of the substantial gainful
activity level applicable as of that date to recipients of
benefits under section 223 of the Social Security Act (42
U.S.C. 423) and under section 202 of that Act (42 U.S.C. 402)
on the basis of a recipient having a disability, and the effect
of such level as a disincentive for those recipients to return
to work. In the study, the Comptroller General also shall
address the merits of increasing the substantial gainful
activity level applicable to such recipients of benefits and
the rationale for not yearly indexing that level to inflation.
(2) Report.--Not later than 2 years after the date of
enactment of this Act, the Comptroller General shall transmit
to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate a
written report presenting the results of the Comptroller
General's study conducted pursuant to this subsection, together
with such recommendations for legislative or administrative
changes as the Comptroller General determines are appropriate.
(d) Report on Disregards Under the DI and SSI Programs.--Not later
than 90 days after the date of 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
regulatory modification of the disregard would be
appropriate; and
(3) with respect to the disregard described in section
1612(b)(7) of the Social Security Act (42 U.S.C. 1382a(b)(7))
(relating to grants, scholarships, or fellowships received for
use in paying the cost of tuition and fees at any educational
(including technical or vocational education) institution)--
(A) identifies the number of individuals receiving
benefits under title XVI of such Act (42 U.S.C. 1381 et
seq.) who have attained age 22 and have not had any
portion of any grant, scholarship, or fellowship
received for use in paying the cost of tuition and fees
at any 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 the Social Security Act should be increased to age 25; and
(C) recommends whether such disregard should be
expanded to include any such grant, scholarship, or
fellowship received for use in paying the cost of room
and board at any such institution.
TITLE IV--TECHNICAL AMENDMENTS
SEC. 401. TECHNICAL AMENDMENTS RELATING TO DRUG ADDICTS AND ALCOHOLICS.
(a) Clarification Relating to the Effective Date of the Denial of
Social Security Disability Benefits to Drug Addicts and Alcoholics.--
Section 105(a)(5) of the Contract with America Advancement Act of 1996
(Public Law 104-121; 110 Stat. 853) is amended--
(1) in subparagraph (A), by striking ``by the Commissioner
of Social Security'' and ``by the Commissioner''; and
(2) by adding at the end the following:
``(D) For purposes of this paragraph, an
individual's claim, with respect to benefits under
title II of the Social Security Act based on
disability, which has been denied in whole before the
date of 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
administrative 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 Security pursuant to
relief in a class action or implementation by
the Commissioner of a court remand order.
``(E) Notwithstanding the provisions of this
paragraph, with respect to any individual for whom the
Commissioner of Social Security does not perform the
entitlement redetermination before the date prescribed
in subparagraph (C), the Commissioner shall perform
such entitlement redetermination in lieu of a
continuing disability review whenever the Commissioner
determines that the individual's entitlement is subject
to redetermination based on the preceding provisions of
this paragraph, and the provisions of section 223(f) of
the Social Security Act shall not apply to such
redetermination.''.
(b) Correction to Effective Date of Provisions Concerning
Representative Payees and Treatment Referrals of Social Security
Beneficiaries Who Are Drug Addicts and Alcoholics.--Section
105(a)(5)(B) of the Contract with America Advancement Act of 1996 (42
U.S.C. 405 note) is amended to read as follows:
``(B) The amendments made by paragraphs (2) and (3)
shall take effect on July 1, 1996, with respect to any
individual--
``(i) whose claim for benefits is finally
adjudicated on or after the date of enactment
of this Act; or
``(ii) whose entitlement to benefits is
based on 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:
``(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 Commissioner,
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
``(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
paragraph (1)(A), who receives a benefit under this title for
the month preceding the first month of such confinement, and
whose benefit under this title is determined by the
Commissioner to be not payable by reason of confinement based
on the information provided by the institution, $400 (subject
to reduction under clause (ii)) if the institution 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 individual under an
agreement entered into under section 1611(e)(1)(I).
``(iii) There is authorized to be transferred from the Federal Old-
Age and Survivors Insurance Trust Fund and the Federal Disability
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).
``(iv) The Commissioner is authorized to provide, on a reimbursable
basis, information obtained pursuant to agreements entered into under
clause (i) to any agency administering a Federal or federally assisted
cash, food, or medical assistance program for eligibility purposes.''.
(2) Conforming amendment to the privacy act.--Section
552a(a)(8)(B) of title 5, United States Code, is amended--
(A) in clause (vi), by striking ``or'' at the end;
(B) in clause (vii), by adding ``or'' at the end;
and
(C) by adding at the end the following:
``(viii) matches performed pursuant to
section 202(x)(3)(B) or 1611(e)(1)(I) of the
Social Security Act (42 U.S.C. 402(x)(3)(B),
1382(e)(1)(I));''.
(3) Effective date.--The amendments made by this subsection
shall apply to individuals whose period of confinement in an
institution commences on or after the first day of the fourth
month beginning after the month in which this Act is enacted.
(b) Elimination of Title II Requirement That Confinement Stem From
Crime Punishable by 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'' and inserting ``throughout'';
(B) in clause (i), by striking ``an offense
punishable by imprisonment for more than 1 year
(regardless of the actual sentence imposed)'' and
inserting ``a criminal offense''; and
(C) in clause (ii)(I), by striking ``an offense
punishable by imprisonment for more than 1 year'' and
inserting ``a criminal offense''.
(2) Effective date.--The amendments made by this subsection
shall apply to individuals whose period of confinement in an
institution commences on or after the first day of the fourth
month beginning after the month in which this Act is enacted.
(c) Conforming Title XVI Amendments.--
(1) 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'';
(B) by redesignating clauses (ii) and (iii) as
clauses (iii) and (iv), respectively; and
(C) by inserting after clause (i) the following:
``(ii) The dollar amounts specified in clause (i)(II) shall be
reduced by 50 percent if the Commissioner is also required to make a
payment to the institution with respect to the same individual under an
agreement entered into under section 202(x)(3)(B).''.
(2) Expansion of categories of institutions eligible to
enter into agreements with the commissioner.--Section
1611(e)(1)(I)(i) of the Social Security 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 by striking
``(I) The provisions'' and all that follows through ``(II)''.
(4) Effective date.--The amendments made by this subsection
shall take effect as if included in the enactment of section
203(a) of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (Public Law 104-193; 110 Stat.
2186). The reference to section 202(x)(1)(A)(ii) of the Social
Security Act in section 1611(e)(1)(I)(i) of the Social Security
Act as amended by paragraph (2) shall be deemed a reference to
such section 202(x)(1)(A)(ii) as amended by subsection
(b)(1)(C).
(d) Continued Denial of Benefits to Sex 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:
``(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 the
Social Security Act (42 U.S.C. 402(x)(1)(B)(ii)) is amended by
striking ``clause (ii)'' and inserting ``clauses (ii) and
(iii)''.
(3) Effective date.--The amendments made by this subsection
shall apply with respect to benefits for months ending after
the date of enactment of this Act.
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 therefore (in such form and manner, and with such official,
as may be prescribed by the Commissioner of the Internal Revenue
Service), 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),
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 beginning 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 paragraph (4) or (5) of section 1402(c) of such Code)
except for the exemption under section 1402(e)(1) of such Code.
(b) Effective Date.--Subsection (a) shall apply with respect to
service performed (to the extent specified in such subsection) in
taxable years beginning after December 31, 1999, and with respect to
monthly insurance benefits payable under title II of the Social
Security Act on the basis of the wages and self-employment income of
any individual for months in or after the calendar year in which such
individual's application for revocation (as described in such
subsection) is effective (and lump-sum death payments payable under
such title on the basis of such wages and self-employment income in the
case of deaths occurring in or after such calendar year).
SEC. 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).
SEC. 405. AUTHORIZATION FOR STATE TO PERMIT ANNUAL WAGE REPORTS.
(a) In General.--Section 1137(a)(3) of the Social Security Act (42
U.S.C. 1320b-7(a)(3)) is amended by inserting before the semicolon the
following: ``, and except that in the case of wage reports with respect
to domestic service employment, a State may permit employers (as so
defined) that make returns with respect to such employment on a
calendar year basis pursuant to section 3510 of the Internal Revenue
Code of 1986 to make such reports on an annual basis''.
(b) Technical Amendments.--Section 1137(a)(3) of the Social
Security Act (42 U.S.C. 1320b-7(a)(3)) is amended--
(1) by striking ``(as defined in section
453A(a)(2)(B)(iii))''; and
(2) by inserting ``(as defined in section 453A(a)(2)(B))''
after ``employers'' .
(c) Effective Date.--The amendments made by this section shall
apply to wage reports required to be submitted on and after the date of
enactment of this Act.
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