[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 619 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 619

   To amend the Social Security Act to provide improved services to 
         beneficiaries under such Act, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               March 18 (legislative day, March 3), 1993

  Mr. Riegle introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
   To amend the Social Security Act to provide improved services to 
         beneficiaries under such Act, 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 ``Social Security 
Bill of Rights''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

                     TITLE I--SERVICE IMPROVEMENTS

Sec. 101. One-stop shopping for certain benefits.
Sec. 102. Explicit requirements for maintenance of telephone access to 
                            local offices of the Social Security 
                            Administration.
Sec. 103. Restitution of funds misappropriated by representative 
                            payees.
Sec. 104. Use of bilingual personnel and printed material in 
                            administration of programs.
Sec. 105. Outreach program for seniors.
Sec. 106. Provision of certain information on the OASI trust fund.
Sec. 107. Improvement and clarification of provisions prohibiting 
                            misuse of symbols, emblems, or names in 
                            reference to social security programs and 
                            agencies.
      TITLE II--WORK INCENTIVES FOR INDIVIDUALS WITH DISABILITIES

  Subtitle A--Amendments Relating to Benefits Under Title XVI of the 
                          Social Security Act

Sec. 201. Benefits for persons who lose social security disability 
                            benefits.
Sec. 202. Inapplicability of spousal deeming under section 1619(b).
Sec. 203. Exclusion from income under section 1619 of all costs of 
                            attendant care.
Sec. 204. Disregard of cost-of-living adjustments under title II in 
                            determining medicaid eligibility under 
                            section 1619 if such adjustments would be 
                            the sole basis for ineligibility.
Sec. 205. Elimination of the one-third reduction rule.
Sec. 206. Increase in resource limits.
Sec. 207. Reduction in the income and resources of a parent of a 
                            disabled child.
Sec. 208. Effective date.
 Subtitle B--Advisory Committee on Criteria for Determining Disability

Sec. 211. Advisory committee on criteria for determining disability.
 TITLE III--DEMONSTRATION PROJECTS TO PROVIDE FOR IMPROVED PROCEDURES 
   WITH RESPECT TO DISABILITY DETERMINATIONS, CONTINUING DISABILITY 
                  REVIEWS, AND REHABILITATION SERVICES

Sec. 301. Demonstration projects under titles II and XVI of the Social 
                            Security Act to provide rehabilitation 
                            services to individuals within certain 
                            categories of disability.
Sec. 302. Demonstration projects to improve review of disability 
                            determinations under titles II and XVI of 
                            the Social Security Act. 

                     TITLE I--SERVICE IMPROVEMENTS

SEC. 101. ONE-STOP SHOPPING FOR CERTAIN BENEFITS.

    (a) In General.--Title XI of the Social Security Act (42 U.S.C. 
1301 et seq.) is amended by inserting after section 1122 the following 
new section:

 ``use of social security administration offices to apply for certain 
                                benefits

    ``Sec. 1123. (a) Establishment of Procedures.--
            ``(1) In general.--Except as provided in paragraph (2), not 
        later than 1 year after the date of enactment of this section, 
        the Secretary shall establish procedures permitting individuals 
        to apply for medical assistance under title XIX and for 
        benefits under the Low-Income Home Energy Assistance Act of 
        1981 in each office established by the Secretary to receive 
        applications to determine eligibility for benefits under title 
        XVIII.
            ``(2) Exception.--Paragraph (1) shall not apply to any 
        office which is located in the same building as a State or 
        local office established to accept applications for medical 
        assistance under title XIX and benefits under the Low-Income 
        Home Energy Assistance Act of 1981.
    ``(b) Responsibilities of Offices.--The offices described in 
subsection (a) shall--
            ``(1) accept applications from individuals applying for 
        medical assistance under title XIX and benefits under the Low-
        Income Home Energy Assistance Act of 1981;
            ``(2) assist such individuals in completing such 
        applications; and
            ``(3) forward completed applications to the appropriate 
        State or local agency.
    ``(c) Training.--
            ``(1) In general.--Not later than 180 days after the date 
        of enactment of this section, the Secretary, in consultation 
        with State and local agencies, shall establish a training 
        program for the individuals responsible for accepting, and 
        assisting in the completion of, applications for medical 
        assistance under title XIX and benefits under the Low-Income 
        Home Energy Assistance Act of 1981.
            ``(2) Exception.--Federal employees who work in the offices 
        described in subsection (a) shall not be required to complete 
        the training program established under paragraph (1) if State 
        or local employees with training in accepting, and assisting in 
        the completion of, such applications are placed in such 
        offices.''.

SEC. 102. EXPLICIT REQUIREMENTS FOR MAINTENANCE OF TELEPHONE ACCESS TO 
              LOCAL OFFICES OF THE SOCIAL SECURITY ADMINISTRATION.

    (a) Maintenance of Service to Local Offices.--
            (1) In general.--Section 5110(a) of the Omnibus Budget 
        Reconciliation Act of 1990 is amended by adding at the end the 
        following new sentences: ``In carrying out the requirements of 
        the preceding sentence, the Secretary shall reestablish and 
        maintain in service at least the same number of telephone lines 
        to each such local office as was in place as of such date, 
        including telephone sets for connections to such lines.''
            (2) Effective Date.--The Secretary of Health and Human 
        Services shall ensure that the requirements of the amendment 
        made by paragraph (1) are carried out no later than June 1, 
        1993.
    (b) Maintenance of Toll-Free Telephone Number Service.--The 
Secretary of Health and Human Services shall ensure that toll-free 
telephone service provided by the Social Security Administration is 
maintained at a level which is at least equal to that in effect on the 
date of the enactment of this Act.

SEC. 103. RESTITUTION OF FUNDS MISAPPROPRIATED BY REPRESENTATIVE 
              PAYEES.

    (a) In General.--Section 206(a)(5) of the Social Security Act (42 
U.S.C. 406(a)(5)) is amended--
            (1) by striking ``or who shall knowingly'' and inserting 
        ``who shall misappropriate any funds from any claimant or 
        prospective claimant or beneficiary under this title, or who 
        shall knowingly''; and
            (2) by inserting ``and shall pay to such claimant or 
        prospective claimant or beneficiary an amount equal to the 
        amount of funds misappropriated or the amount of any fee paid 
        in excess of the maximum fee'' after ``or both''.
    (b) Effective Date.--The amendment made by subsection (a) shall be 
effective on the date of the enactment of this Act.

SEC. 104. USE OF BILINGUAL PERSONNEL AND PRINTED MATERIAL IN 
              ADMINISTRATION OF PROGRAMS.

    (a) Programs Administered by the Secretary.--Part A of title XI of 
the Social Security Act (42 U.S.C. 1301 et seq.) is amended by adding 
at the end the following new section:

           ``use of bilingual personnel and printed material

    ``Sec. 1144. The Secretary shall use appropriate bilingual 
personnel and printed material in the administration of programs under 
this Act in those portions of political subdivisions in any State in 
which a substantial number of members of households speak a language 
other than English.''.
    (b) Programs Administered by State Agencies.--
            (1) AFDC.--Section 402(a) of such Act (42 U.S.C. 602(a)) is 
        amended by inserting after paragraph (28) the following new 
        paragraph:
            ``(29) provide that appropriate bilingual personnel and 
        printed material will be used in the administration of the 
        program under this part in those portions of political 
        subdivisions in the State in which a substantial number of 
        members of households speak a language other than English;''.
            (2) Child welfare services.--Section 422(b) of such Act (42 
        U.S.C. 622(b)) is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (7);
                    (B) by striking the period at the end of paragraph 
                (8) and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(9) provide that appropriate bilingual personnel and 
        printed material will be used in the administration of the 
        program under this part in those portions of political 
        subdivisions in the State in which a substantial number of 
        members of households speak a language other than English.''.
            (3) Child support.--Section 454 of such Act (42 U.S.C. 654) 
        is amended--
                    (A) by striking ``and'' at the end of paragraph 
                (23);
                    (B) by striking the period at the end of paragraph 
                (24) and inserting ``; and''; and
                    (C) by inserting after paragraph (24) the following 
                new paragraph:
            ``(25) provide that appropriate bilingual personnel and 
        printed material will be used in the administration of the 
        program under this part in those portions of political 
        subdivisions in the State in which a substantial number of 
        members of households speak a language other than English.''.
            (4) Medicaid program.--Section 1902(a) of such Act (42 
        U.S.C. 1396a(a)) is amended by inserting after paragraph (28) 
        the following new paragraph:
            ``(29) provide that appropriate bilingual personnel and 
        printed material will be used in the administration of the 
        program under this title in those portions of political 
        subdivisions in the State in which a substantial number of 
        members of households speak a language other than English;''.
    (c) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by subsections (a) and (b) shall be effective 
        180 days after the date of the enactment of this Act.
            (2) Special rule.--In the case of a State plan that the 
        Secretary determines requires State legislation (other than 
        legislation appropriating funds) 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 such 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 section. For purposes of this 
        paragraph, in the case of a State that has a 2-year legislative 
        session, each year of the session shall be treated as a 
        separate regular session of the State legislature.

SEC. 105. OUTREACH PROGRAM FOR SENIORS.

    (a) In General.--Title XVI of the Social Security Act (42 U.S.C. 
1381 et seq.) is amended by adding at the end the following new 
section:

                     ``outreach program for seniors

    ``Sec. 1636. (a) In General.--The Secretary shall establish and 
conduct an ongoing program of outreach to individuals who have attained 
age 65 and who are potentially eligible for benefits under this title 
by reason of disability or blindness.
    ``(b) Requirements.--Under the program conducted under subsection 
(a) the Secretary shall--
            ``(1) coordinate with area agencies on aging designated 
        under section 305(a)(2)(A) of the Older Americans Act of 1965, 
        State and local governments, mental health systems, charity 
        groups, and cultural groups to identify individuals who are 
        unable to get to Social Security Administration offices to 
        apply for benefits under this title; and
            ``(2) provide information on benefits under this title and 
        on other programs under which individuals may be eligible for 
        benefits including the food stamp program under the Food Stamp 
        Act of 1977, the low-income home energy assistance program 
        under the Low-Income Home Energy Assistance Act of 1981, the 
        medicaid program under title XIX, and housing assistance 
        programs.''.
    (b) Effective Date.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Health and Human Services shall 
establish the outreach program required by the amendment under 
subsection (a).

SEC. 106. PROVISION OF CERTAIN INFORMATION ON THE OASI TRUST FUND.

    (a) In General.--Section 201 of the Social Security Act (42 U.S.C. 
401) is amended by adding at the end the following new subsection:
    ``(n) The Secretary shall prepare a summary of the financial status 
of the Federal Old-Age and Survivors Insurance Trust Fund (hereafter 
referred to in this subsection as the ``Trust Fund'') on an annual 
basis. Such summary shall--
            ``(1) be based on the annual report of the Board of 
        Trustees submitted to the Congress under subsection (c)(2);
            ``(2) be provided to each individual who receives a cost of 
        living adjustment under section 215(i)(1); and
            ``(3) contain at least the following information:
                    ``(A) an explanation of how the Trust Fund is 
                financed;
                    ``(B) a description of the long-range financial 
                status of the trust fund; and
                    ``(C) a description of all of the services provided 
                free of charge by the Social Security Administration to 
                individuals who are eligible for an old-age or 
                disability insurance benefit.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to cost of living adjustments under section 215(i)(1) made after 
January 1, 1993.

SEC. 107. IMPROVEMENT AND CLARIFICATION OF PROVISIONS PROHIBITING 
              MISUSE OF SYMBOLS, EMBLEMS, OR NAMES IN REFERENCE TO 
              SOCIAL SECURITY PROGRAMS AND AGENCIES.

    (a) Prohibition of Unauthorized Reproduction, Reprinting, or 
Distribution for Fee of Certain Official Publications.--Section 1140(a) 
of the Social Security Act (42 U.S.C. 1320b-10(a)) is amended--
            (1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively;
            (2) by inserting ``(1)'' after ``(a)''; and
            (3) by adding at the end the following new paragraph:
    ``(2) No person may, for a fee, reproduce, reprint, or distribute 
any item consisting of a form, application, or other publication of the 
Social Security Administration unless such person has obtained 
specific, written authorization for such activity in accordance with 
regulations which the Secretary shall prescribe.''.
    (b) Addition to Prohibited Words, Letters, Symbols, and Emblems.--
Paragraph (1) of section 1140(a) of such Act (as redesignated by 
subsection (a)) is further amended--
            (1) in subparagraph (A) (as redesignated), by striking 
        ``Administration', the letters `SSA' or `HCFA','' and inserting 
        ``Administration', `Department of Health and Human Services', 
        `Health and Human Services', `Supplemental Security Income 
        Program', or `Medicaid', the letters `SSA', `HCFA', `DHHS', 
        `HHS', or `SSI',''; and
            (2) in subparagraph (B) (as redesignated), by striking 
        ``Social Security Administration'' each place it appears and 
        inserting ``Social Security Administration, Health Care 
        Financing Administration, or Department of Health and Human 
        Services'', and by striking ``or of the Health Care Financing 
        Administration''.
    (c) Exemption for Use of Words, Letters, Symbols, and Emblems of 
State and Local Government Agencies by Such Agencies.--Paragraph (1) of 
section 1140(a) of such Act (as redesignated by subsection (a)) is 
further amended by adding at the end the following new sentence: ``The 
preceding provisions of this subsection shall not apply with respect to 
the use by any agency or instrumentality of a State or political 
subdivision of a State of any words or letters which identify an agency 
or instrumentality of such State or of a political subdivision of such 
State or the use by any such agency or instrumentality of any symbol or 
emblem of an agency or instrumentality of such State or a political 
subdivision of such State.''.
    (d) Inclusion of Reasonableness Standard.--Section 1140(a)(1) of 
such Act (as amended by the preceding provisions of this section) is 
further amended, in the matter following subparagraph (B) (as 
redesignated), by striking ``convey'' and inserting ``convey, or in a 
manner which reasonably could be interpreted or construed as 
conveying,''.
    (e) Ineffectiveness of Disclaimers.--Subsection (a) of section 1140 
of such Act (as amended by the preceding provisions of this section) is 
further amended by adding at the end the following new paragraph:
    ``(3) Any determination of whether the use of one or more words, 
letters, symbols, or emblems (or any combination or variation thereof) 
in connection with an item described in paragraph (1) or the 
reproduction, reprinting, or distribution of an item described in 
paragraph (2) is a violation of this subsection shall be made without 
regard to any inclusion in such item (or any so reproduced, reprinted, 
or distributed copy thereof) of a disclaimer of affiliation with the 
United States Government or any particular agency or instrumentality 
thereof.''.
    (f) Violations with Respect to Individual Items.--Section 
1140(b)(1) of such Act (42 U.S.C. 1320b-10(b)(1)) is amended by adding 
at the end the following new sentence: ``In the case of any items 
referred to in subsection (a)(1) consisting of pieces of mail, each 
such piece of mail which contains one or more words, letters, symbols, 
or emblems in violation of subsection (a) shall represent a separate 
violation. In the case of any item referred to in subsection (a)(2), 
the reproduction, reprinting, or distribution of such item shall be 
treated as a separate violation with respect to each copy thereof so 
reproduced, reprinted, or distributed.''.
    (g) Elimination of Cap on Aggregate Liability Amount.--
            (1) Repeal.--Paragraph (2) of section 1140(b) of such Act 
        (42 U.S.C. 1320b-10(b)(2)) is repealed.
            (2) Conforming amendments.--Section 1140(b) of such Act is 
        further amended--
                    (A) by striking ``(1) Subject to paragraph (2), 
                the'' and inserting ``The'';
                    (B) by redesignating subparagraphs (A) and (B) as 
                paragraphs (1) and (2), respectively; and
                    (C) in paragraph (1) (as redesignated), by striking 
                ``subparagraph (B)'' and inserting ``paragraph (2)''.
    (h) Removal of Formal Declination Requirement.--Section 1140(c)(1) 
of such Act (42 U.S.C. 1320b-10(c)(1)) is amended by inserting ``and 
the first sentence of subsection (c)'' after ``and (i)''.
    (i) Penalties Relating to Social Security Administration Deposited 
in OASI Trust Fund.--Section 1140(c)(2) of such Act (42 U.S.C. 1320b-
10(c)(2)) is amended in the second sentence by striking ``United 
States.'' and inserting ``United States, except that, to the extent 
that such amounts are recovered under this section as penalties imposed 
for misuse of words, letters, symbols, or emblems relating to the 
Social Security Administration, such amounts shall be deposited into 
the Federal Old-Age and Survivor's Insurance Trust Fund.''.
    (j) Annual Reports.--Section 1140 of such Act (42 U.S.C. 1320b-10) 
is amended by adding at the end the following new subsection:
    ``(d) The Secretary shall include in the annual report submitted 
pursuant to section 704 a report on the operation of this section 
during the year covered by such annual report. Such report shall 
specify--
            ``(1) the number of complaints of violations of this 
        section received by the Social Security Administration during 
        the year,
            ``(2) the number of cases in which a notice of violation of 
        this section was sent by the Social Security Administration 
        during the year requesting that an individual cease activities 
        in violation of this section,
            ``(3) the number of complaints of violations of this 
        section referred by the Social Security Administration to the 
        Inspector General in the Department of Health and Human 
        Services during the year,
            ``(4) the number of investigations of violations of this 
        section undertaken by the Inspector General during the year,
            ``(5) the number of cases in which a demand letter was sent 
        during the year assessing a civil money penalty under this 
        section,
            ``(6) the total amount of civil money penalties assessed 
        under this section during the year,
            ``(7) the number of requests for hearings filed during the 
        year pursuant to sections 1140(c)(1) and 1128A(c)(2),
            ``(8) the disposition during such year of hearings filed 
        pursuant to sections 1140(c)(1) and 1128A(c)(2), and
            ``(9) the total amount of civil money penalties under this 
        section deposited into the Federal Old-Age and Survivors 
        Insurance Trust Fund during the year.''.
    (k) Effective Date.--The amendments made by this section shall 
apply with respect to violations occurring after the date of the 
enactment of this Act.

      TITLE II--WORK INCENTIVES FOR INDIVIDUALS WITH DISABILITIES

  Subtitle A--Amendments Relating to Benefits Under Title XVI of the 
                          Social Security Act

SEC. 201. BENEFITS FOR PERSONS WHO LOSE SOCIAL SECURITY DISABILITY 
              BENEFITS.

    (a) In General.--Part A of title XVI (42 U.S.C. 1382 et seq.) is 
amended by inserting after section 1619 the following:

  ``benefits for persons who lose social security disability benefits

    ``Sec. 1619A. Each individual--
            ``(1) who received benefits under subsection (d), (e), or 
        (f) of section 202 based on disability, or disability insurance 
        benefits under section 223;
            ``(2) whose benefits under such provision are not payable 
        in a month after the close of the individual's trial work 
        period determined by application of section 222(c)(4)(A) by 
        reason of the rendering of services; and
            ``(3) who files an application for benefits under this 
        title during the 33-month period beginning with the first 
        month, after the end of such individual's trial work period, 
        for which a benefit described in paragraph (1) is not payable,
shall, for purposes of the requirement in section 1619 of a prior month 
of eligibility for benefits under section 1611, be deemed to have been 
eligible for benefits under section 1611 in the month immediately 
preceding such 33-month period, and such application shall be deemed to 
have been filed in such immediately preceding month.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to individuals whose trial work period ends after the first day 
of the 13th calendar month following the month in which the date of 
enactment of this Act occurs.

SEC. 202. INAPPLICABILITY OF SPOUSAL DEEMING UNDER SECTION 1619(b).

    Section 1619(b) of the Social Security Act (42 U.S.C. 1382h(b)) is 
amended by adding at the end the following new paragraph:
    ``(4) In determining whether an individual meets the requirements 
of paragraph (1)(B), beginning with the first month in a period of 
disability or blindness that an individual would have income deemed to 
be available to them under the provisions of section 1614(f)(1) which 
(but for the provisions of this paragraph) would have made them 
ineligible under this subsection because of the requirements of 
paragraph (1)(B) and continuing for each subsequent month during such 
period of disability or blindness, the income of such individual's 
spouse shall not be considered in determining whether such individual 
meets the requirements of paragraph (1)(B).''.

SEC. 203. EXCLUSION FROM INCOME UNDER SECTION 1619 OF ALL COSTS OF 
              ATTENDANT CARE.

    Section 1619(b)(1)(D) of the Social Security Act (42 U.S.C. 
1382h(b)(1)(D)) is amended by inserting ``whether or not such services 
or assistance is also needed to enable him to carry out his normal 
daily functions,'' before ``which would be available to him in the 
absence of such earnings.''.

SEC. 204. DISREGARD OF COST-OF-LIVING ADJUSTMENTS UNDER TITLE II IN 
              DETERMINING MEDICAID ELIGIBILITY UNDER SECTION 1619 IF 
              SUCH ADJUSTMENTS WOULD BE THE SOLE BASIS FOR 
              INELIGIBILITY.

    Section 1619(b) of the Social Security Act (42 U.S.C. 1382h(b)), as 
amended by section 202, is further amended by adding at the end the 
following new paragraph:
            ``(5) Benefits shall be provided under title XIX to any 
        individual (and such individual's spouse (if any)) for any 
        month for which such individual is entitled to a monthly 
        insurance benefit under title II but is not eligible for 
        benefits under subsection (a), in like manner and subject to 
        the same terms and conditions as are applicable under this 
        section in the case of individuals who are eligible for and 
        receiving benefits under subsection (a) for such month, if for 
        such month such individual would be (or could become) eligible 
        for benefits under subsection (a) except for amounts of income 
        received by such individual which are attributable to increases 
        in the level of monthly insurance benefits payable under title 
        II which have taken effect pursuant to section 215(i), in the 
        case of such individual, since the later of November 1989 or 
        the last month for which such individual was both eligible for 
        (and received) benefits under subsection (a) and was entitled 
        to a monthly insurance benefit under title II, and, in the case 
        of such individual's spouse (if any), since the later of 
        November 1989 and the last month for which such spouse was both 
        eligible for (and received) benefits under subsection (a) and 
        was entitled to a monthly insurance benefit under title II.''.

SEC. 205. ELIMINATION OF THE ONE-THIRD REDUCTION RULE.

    (a) In General.--Section 1612(a) of the Social Security Act (42 
U.S.C. 1382a(a)) is amended by striking clause (i) of paragraph (2)(A).
    (b) Conforming Amendments.--Section 1612(a)(2)(A) of such Act (42 
U.S.C. 1382a(a)(2)(A)) is amended--
            (1) by redesignating clauses (ii) and (iii) as clauses (i) 
        and (ii), respectively; and
            (2) in clause (ii), as redesignated, by striking ``and the 
        provisions of clause (i) shall not be applicable''.
    (c) Effective Date.--The amendments made by subsection (a) shall be 
effective on the date of the enactment of this Act.

SEC. 206. INCREASE IN RESOURCE LIMITS.

    (a) In General.--Section 1611(a) of the Social Security Act (42 
U.S.C. 1382(a)) is amended--
            (1) in paragraph (3)(A), by striking ``and to $3,000 on 
        January 1, 1989'' and inserting ``to $3,000 on January 1, 1989, 
        and to $10,500 on January 1, 1994''; and
            (2) in paragraph (3)(B), by striking ``and to $2,000 on 
        January 1, 1989'' and inserting ``to $2,000 on January 1, 1989, 
        and to $7,000 on January 1, 1994''.
    (b) Effective Date.--The amendments made by subsection (a) shall be 
effective on the date of the enactment of this Act.

SEC. 207. REDUCTION IN THE INCOME AND RESOURCES OF A PARENT OF A 
              DISABLED CHILD.

    (a) In General.--Section 1614(f)(2) of the Social Security Act (42 
U.S.C. 1382c(f)(2)) is amended--
            (1) in subparagraph (A), by striking ``For purposes of 
        determining'' and inserting, ``Except as provided in 
        subparagraph (C), for purposes of determining''; and
            (2) by adding at the end the following new subparagraph:
            ``(C) For purposes of subparagraph (A), the income and 
        resources of a parent of an individual who is a child under age 
        18 shall be reduced by any expenses incurred by such parent in 
        connection with such child's disability.''.
    (b) Effective Date.--The amendments made by subsection (a) shall be 
effective on the date of the enactment of this Act.

SEC. 208. EFFECTIVE DATE.

    Except as otherwise provided, the amendments made by this subtitle 
shall apply with respect to benefits for months beginning on or after 
the first day of the 13th calendar month following the month in which 
the date of enactment of this Act occurs.

 Subtitle B--Advisory Committee on Criteria for Determining Disability

SEC. 211. ADVISORY COMMITTEE ON CRITERIA FOR DETERMINING DISABILITY.

    (a) In General.--The Secretary of Health and Human Services 
(hereafter referred to in this section as the ``Secretary'') shall 
establish an advisory committee (hereafter referred to in this section 
as the ``Committee'') for the purpose of issuing a report concerning 
the appropriate criteria for determining disability under titles II and 
XVI of the Social Security Act.
    (b) Composition.--The Committee shall be composed of individuals 
appointed by the Secretary representing--
            (1) disability advocacy groups;
            (2) academics with expertise in disability issues; and
            (3) executive branch officials from agencies with expertise 
        related to disability issues.
    (c) Issue To Be Addressed.--The Committee shall study the 
appropriateness and feasibility of eliminating the references to 
``substantial gainful activity'' in connection with determinations of 
disability under titles II and XVI of the Social Security Act and 
reformulating the criteria for determining disability in terms of 
disadvantage in performing or participating in major life activities 
such as work.
    (d) Report.--Within 1 year of the date of the enactment of this 
section, the Committee shall submit a report to the Secretary and the 
Congress containing the Committee's findings and conclusions with 
respect to the matters described in subsection (c).
    (e) Compensation.--
            (1) In general.--Members of the Committee shall serve 
        without compensation.
            (2) Expenses reimbursed.--While away from their homes or 
        regular places of business on the business of the Committee, 
        the members of the Committee may be allowed travel expenses, 
        including per diem in lieu of subsistence, as authorized by 
        section 5703 of title 5, United States Code, for persons 
        employed intermittently in Government service.
            (3) Support.--The Secretary shall supply such necessary 
        office facilities, office supplies, support services, and 
        related expenses as necessary to carry out the functions of the 
        Committee.
            (4) Application of the act.--The provisions of the Federal 
        Advisory Committee Act (5 U.S.C. App.) shall not apply with 
        respect to the Committee.

 TITLE III--DEMONSTRATION PROJECTS TO PROVIDE FOR IMPROVED PROCEDURES 
   WITH RESPECT TO DISABILITY DETERMINATIONS, CONTINUING DISABILITY 
                  REVIEWS, AND REHABILITATION SERVICES

SEC. 301. DEMONSTRATION PROJECTS UNDER TITLES II AND XVI OF THE SOCIAL 
              SECURITY ACT TO PROVIDE REHABILITATION SERVICES TO 
              INDIVIDUALS WITHIN CERTAIN CATEGORIES OF DISABILITY.

    (a) In General.--The Secretary of Health and Human Services 
(hereafter referred to in this section as the ``Secretary'') shall 
provide for the establishment of demonstration projects in 10 States 
under which such States will provide improved procedures with respect 
to disability determinations and continuing disability reviews under 
titles II and XVI of the Social Security Act and modify the program for 
providing rehabilitation services to individuals determined under such 
titles to be under a disability.
    (b) Improved Procedures Under Title II Described.--
            (1) Disability determinations.--
                    (A) In general.--Each State conducting a 
                demonstration program under this section shall provide 
                that in making a determination under section 221 of the 
                Social Security Act with respect to whether an 
                individual is under a disability (as defined in section 
                223(d) of such Act), the State agency making such 
                determination shall at the same time determine which of 
                the following disability categories best describes the 
                condition of such individual at the time such 
                determination is made:
                            (i) The individual is under a disability 
                        that is permanent and cannot benefit from 
                        vocational rehabilitation services (as 
                        described in section 103 of the Rehabilitation 
                        Act of 1973) or from comprehensive services for 
                        independent living (as described in title VII 
                        of such Act).
                            (ii) The individual is under a disability 
                        that is permanent, is unlikely to engage in 
                        substantial gainful activity (in the case of an 
                        individual making application for benefits 
                        under section 202(d) or 223 of the Social 
                        Security Act) or any gainful activity (in the 
                        case of an individual making application for 
                        benefits under subsection (e) or (f) of section 
                        202 of such Act) in the future, but can benefit 
                        from vocational rehabilitation services or 
                        comprehensive services for independent living.
                            (iii) The individual is under a disability 
                        that is permanent, can benefit from vocational 
                        rehabilitation services, and, if provided with 
                        such services, would possibly engage in 
                        substantial gainful activity or any gainful 
                        activity, as the case may be, as the result of 
                        having been provided with such services.
                            (iv) The individual is under a disability 
                        that is not permanent and cannot benefit from 
                        vocational rehabilitation services.
                            (v) The individual is under a disability 
                        that is not permanent, is unlikely to engage in 
                        substantial gainful activity or any gainful 
                        activity, as the case may be, in the future, 
                        but can benefit from vocational rehabilitation 
                        services or comprehensive services for 
                        independent living.
                            (vi) The individual is under a disability 
                        that is not permanent, can benefit from 
                        vocational rehabilitation services, and, if 
                        provided with such services, would possibly 
                        engage in substantial gainful activity or any 
                        gainful activity, as the case may be, as the 
                        result of having been provided with such 
                        services.
                            (vii) The individual is under a medically 
                        determinable physical or mental impairment that 
                        is not a disability, and could possibly benefit 
                        from vocational rehabilitation services 
                        provided under title I of the Rehabilitation 
                        Act of 1973.
                            (viii) The individual is under a medically 
                        determinable physical or mental impairment that 
                        is not a disability, and could not benefit from 
                        vocational rehabilitation services.
                            (ix) The individual is not under a 
                        disability or any other medically determinable 
                        physical or mental impairment.
                Determinations made by the State agency under this 
                subparagraph shall be made in accordance with standards 
                promulgated by the Secretary in consultation with the 
                Commissioner of the Rehabilitation Services 
                Administration of the Department of Education.
                    (B) Notice.--Each State conducting a demonstration 
                project under this section shall ensure that each 
                notice to an individual of a decision by the State 
                agency with respect to whether an individual is under a 
                disability shall include, in addition to the matters 
                required to be included in the notice of such decision 
                under section 205(b)(1) of the Social Security Act--
                            (i) an explanation, in understandable 
                        language, of the reasons why the State agency 
                        has determined that a particular disability 
                        category set forth in subparagraph (A) best 
                        describes the condition of such individual; and
                            (ii) in the case of an individual with 
                        respect to whom it is determined that 
                        vocational rehabilitation services or 
                        comprehensive services for independent living 
                        would be beneficial--
                                    (I) a statement that such 
                                individual is eligible for such 
                                services;
                                    (II) a brief explanation of the 
                                disability review required under 
                                paragraph (2) and the application of 
                                such provisions to such individual; and
                                    (III) information with respect to 
                                how to apply for such services.
                    (C) Responsibilities of the secretary.--The 
                Secretary shall take such steps as may be necessary to 
                ensure that--
                            (i) all determinations required by this 
                        paragraph are made in a timely manner; and
                            (ii) the payment of benefits to disabled 
                        individuals under title II of the Social 
                        Security Act is not delayed by reason of such 
                        determinations.
            (2) Review of disability determinations.--
                    (A) Initial review.--The Secretary shall review 
                determinations made by the State agency under a 
                demonstration project in accordance with section 221(c) 
                of the Social Security Act and may modify such agency's 
                determination and determine that a different disability 
                category set forth in paragraph (1)(A) best describes 
                the condition of such individual. The Secretary shall 
                conduct hearings in accordance with section 221(d) of 
                such Act with respect to determinations of which 
                disability category best describes the condition of an 
                individual.
                    (B) Ongoing reviews.--
                            (i) Individuals not receiving vocational 
                        rehabilitation services.--In any case under a 
                        demonstration project where an individual is or 
                        has been determined to be under a disability 
                        and such individual is not eligible for or is 
                        not (for any reason) receiving vocational 
                        rehabilitation services or comprehensive 
                        services for independent living provided in 
                        accordance with section 222 of the Social 
                        Security Act, the case shall be reviewed by the 
                        applicable State agency or the Secretary (as 
                        may be appropriate), for purposes of continuing 
                        eligibility at least once every 3 years in the 
                        case of an individual determined to be under a 
                        disability that is not permanent, and at least 
                        once every 7 years in the case of an individual 
                        determined under such subsection to be under a 
                        disability that is permanent.
                            (ii) Individuals receiving vocational 
                        rehabilitation services.--In any case under a 
                        demonstration project in which an individual is 
                        or has been determined to be under a disability 
                        and such individual is receiving vocational 
                        rehabilitation services or comprehensive 
                        services for independent living provided in 
                        accordance with section 222 of the Social 
                        Security Act, the case shall be reviewed by the 
                        applicable State agency or the Secretary (as 
                        may be appropriate), for purposes of continuing 
                        eligibility, whenever such agency or the 
                        Secretary concludes, on the basis of a report 
                        made in accordance with paragraph (5) that such 
                        a review is warranted.
                            (iii) Other reviews.--Reviews under clauses 
                        (i) and (ii) shall be in addition to, and shall 
                        not be considered as a substitute for, any 
                        other reviews that are required or provided for 
                        under or in the administration of title II of 
                        the Social Security Act.
            (3) Referral for rehabilitation services.--
                    (A) In general.--Each State conducting a 
                demonstration project shall provide that, except in the 
                case of an individual referred to a facility pursuant 
                to subparagraph (B), the State agency making 
                determinations of whether an individual is under a 
                disability shall promptly refer any individual 
                determined to fall within a disability category set 
                forth in clause (ii), (iii), (v), (vi), or (vii) of 
                paragraph (1)(A), to--
                            (i) the State agency or agencies 
                        administering or supervising the administration 
                        of the State plan approved under title I of the 
                        Rehabilitation Act of 1973 for necessary 
                        vocational rehabilitation services, or
                            (ii) the State unit (if any) designated 
                        under section 705 of such Act to administer a 
                        State plan approved under title VII of such Act 
                        for such services, as may be appropriate.
                    (B) Other individuals.--If an individual is 
                determined to be under a disability and to fall within 
                a disability category set forth in clause (iii) or (vi) 
                of paragraph (1)(A), the State agency may refer such 
                individual directly to a facility that has been 
                certified by the Secretary as qualified to be a 
                provider of vocational rehabilitation services and 
                shall make payments directly to such facility for 
                vocational rehabilitation services furnished to such 
                individual.
                    (C) Individuals dissatisfied with services.--
                            (i) In general.--Any individual who--
                                    (I) is referred under subparagraph 
                                (B) to a provider of vocational 
                                rehabilitation services, and
                                    (II) is dissatisfied for any reason 
                                with the services of the provider,
                        may request that the State agency refer such 
                        individual to another provider of such 
                        services.
                            (ii) Action on request.--The State agency 
                        shall promptly make a determination with 
                        respect to such request and notify the 
                        individual of the determination. If the request 
                        is denied, the notice required by this clause 
                        shall contain a statement, in understandable 
                        language, of the reason or reasons for the 
                        denial of the request.
                            (iii) Hearing.--Any individual making a 
                        request under this subparagraph shall be 
                        entitled to a hearing on the determination made 
                        under clause (ii) with respect to the request 
                        to the same extent as provided in section 
                        205(b) of the Social Security Act for decisions 
                        of the Secretary, and to judicial review of the 
                        final decision made after the hearing, as is 
                        provided in section 205(g) of such Act.
            (4) Eligibility for rehabilitation services.--
                    (A) In general.--Each State conducting a 
                demonstration project shall provide that an individual 
                determined to be under a disability or other medically 
                determinable physical or mental impairment and to fall 
                within a disability category set forth in clause (iii), 
                (vi), or (vii) of paragraph (1)(A) (other than an 
                individual referred to and receiving vocational 
                rehabilitation services from a provider) shall be 
                eligible for vocational rehabilitation services 
                provided under title I of the Rehabilitation Act of 
                1973.
                    (B) Other individuals eligible for comprehensive 
                services for independent living.--Each State conducting 
                a demonstration project shall provide that an 
                individual determined to be under a disability and to 
                fall within a disability category described in clause 
                (ii) or (v) of paragraph (1)(A) shall be eligible for 
                vocational rehabilitation services provided under title 
                I of the Rehabilitation Act of 1973 or comprehensive 
                services for independent living provided under title 
                VII of such Act.
            (5) Reporting by rehabilitation facilities, independent 
        living facilities, and certified providers.--
                    (A) In general.--Each State conducting a 
                demonstration project shall provide that a facility 
                which--
                            (i) is a rehabilitation facility and 
                        provides vocational rehabilitation services to 
                        an individual described in paragraph (4) (other 
                        than an individual determined to fall within 
                        the disability category set forth in paragraph 
                        (1)(A)(vii)) under a State plan approved under 
                        title I of the Rehabilitation Act of 1973, or
                            (ii) provides comprehensive services for 
                        independent living to an individual described 
                        in paragraph (4)(B) under a State plan approved 
                        under title VII of such Act,
                shall report promptly to the agency of such State that 
                determines whether an individual is under a disability 
                the termination of the provision of such services to 
                such individual (and the reason or reasons for such 
                termination), any significant change in the impairment 
                of such individual, and any change in the employment 
                status of such individual that might warrant a review 
                with respect to the disability of such individual in 
                accordance with section 221(i) of the Social Security 
                Act.
                    (B) Other facilities.--Each State conducting a 
                demonstration project shall provide that a 
                rehabilitation facility that provides vocational 
                rehabilitation services under a plan approved under 
                title I of the Rehabilitation Act of 1973 to an 
                individual determined to be under a disability and to 
                fall within the disability category set forth in clause 
                (v) or (vi) of paragraph (1)(A) shall, in addition to 
                submitting any reports required under subparagraph (A) 
                with respect to such individual, submit a report once 
                every 3 years that evaluates--
                            (i) the progress of such individual toward 
                        the achievement of the goals established with 
                        respect to such individual and included in the 
                        individualized written plan of vocational 
                        rehabilitation developed for such individual 
                        pursuant to subparagraph (A) of paragraph (6);
                            (ii) the likelihood that such individual 
                        will engage in substantial gainful activity or 
                        any gainful activity, as the case may be, in 
                        the future as the result of such services; and
                            (iii) any other matters that are relevant 
                        to determination or redetermination of the 
                        disability status of such individual.
                    (C) Report on change in condition of certain 
                individuals.--Failure by a facility described in 
                subparagraph (A) to report a change in the condition of 
                an individual described in subparagraph (A) or (B) of 
                paragraph (4) (other than an individual determined to 
                fall within the disability category set forth in clause 
                (vii) of paragraph (1)(A)), that such facility knows or 
                has reason to know would result in a determination that 
                such individual is no longer under a disability, shall 
                be a misdemeanor and, upon conviction thereof, shall be 
                punishable by a fine of up to $10,000.
                    (D) Applicability to referred individuals.--Any 
                provision of this paragraph that is applicable to a 
                rehabilitation facility shall also apply to a provider 
                of vocational rehabilitation services to which 
                individuals are referred in accordance with paragraph 
                (3)(B).
    (c) Improved Procedures Under Title XVI Described.--
            (1) Disability determinations.--
                    (A) In general.--Each State conducting a 
                demonstration project shall provide that in making a 
                determination under paragraph (2) or (3) of section 
                1614(a) of the Social Security Act with respect to 
                whether an individual is a blind or disabled 
                individual, the State agency making such determination 
                shall at the same time determine which of the following 
                disability categories best describes the condition of 
                such individual at the time such determination is made:
                            (i) The individual is a blind or disabled 
                        individual whose impairment is permanent and 
                        who can not benefit from vocational 
                        rehabilitation services (as described in 
                        section 103 of the Rehabilitation Act of 1973) 
                        or from comprehensive services for independent 
                        living (as described in title VII of such Act).
                            (ii) The individual is a blind or disabled 
                        individual whose impairment is permanent, who 
                        is unlikely to engage in substantial gainful 
                        activity in the future, but who can benefit 
                        from vocational rehabilitation services or 
                        comprehensive services for independent living.
                            (iii) The individual is a blind or disabled 
                        individual whose impairment is permanent, who 
                        can benefit from vocational rehabilitation 
                        services, and who, if provided with such 
                        services, would possibly engage in substantial 
                        gainful activity as the result of having been 
                        provided with such services.
                            (iv) The individual is a blind or disabled 
                        individual whose impairment is not permanent 
                        and who can not benefit from vocational 
                        rehabilitation services.
                            (v) The individual is a blind or disabled 
                        individual whose impairment is not permanent, 
                        who is unlikely to engage in substantial 
                        gainful activity in the future as the result of 
                        such services, but who can benefit from 
                        vocational rehabilitation services or 
                        comprehensive services for independent living.
                            (vi) The individual is a blind or disabled 
                        individual whose impairment is not permanent, 
                        who can benefit from vocational rehabilitation 
                        services, and who, if provided with such 
                        services, would possibly engage in substantial 
                        gainful activity as the result of having been 
                        provided with such services.
                            (vii) The individual is not a blind or 
                        disabled individual but is under a medically 
                        determinable physical or mental impairment, and 
                        could possibly benefit from vocational 
                        rehabilitation services provided under title I 
                        of the Rehabilitation Act of 1973.
                            (viii) The individual is under a medically 
                        determinable physical or mental impairment, but 
                        is not a blind or disabled individual and could 
                        not benefit from vocational rehabilitation 
                        services.
                            (ix) The individual is not a blind or 
                        disabled individual and is not under any other 
                        medically determinable physical or mental 
                        impairment.
                Determinations made by the State agency under this 
                subparagraph shall be made in accordance with standards 
                promulgated by the Secretary in consultation with the 
                Commissioner of the Rehabilitation Services 
                Administration of the Department of Education.
                    (B) Notice.--Each State conducting a demonstration 
                project under this section shall ensure that each 
                notice to an individual of a decision under paragraph 
                (2) or (3) of section 1614(a) of the Social Security 
                Act with respect to whether such individual is a blind 
                or disabled individual shall include, in addition to 
                the matters required to be included in the notice of 
                such decision under section 1631(c)(1)--
                            (i) an explanation, in understandable 
                        language, of the reasons why the State agency 
                        has determined that a particular disability 
                        category set forth in subparagraph (A) best 
                        describes the condition of such individual; and
                            (ii) in the case of an individual with 
                        respect to whom it is determined that 
                        vocational rehabilitation services or 
                        comprehensive services for independent living 
                        would be beneficial--
                                    (I) a statement that such 
                                individual is eligible for such 
                                services; and
                                    (II) information with respect to 
                                how to apply for such services.
                    (C) Responsibilities of the secretary.--The 
                Secretary shall take such steps as may be necessary to 
                ensure that--
                            (i) all determinations under subparagraph 
                        (A) and paragraphs (2) and (3) of subsection 
                        1614(a) are made in a timely manner, and
                            (ii) the payment of benefits to blind and 
                        disabled individuals under title XVI of the 
                        Social Security Act is not delayed by reason of 
                        such determinations.
            (2) Review of disability determinations.--The Secretary 
        shall review determinations made by the State agency under a 
        demonstration project in accordance with section 1631(c) of the 
        Social Security Act and may modify such agency's determination 
        and determine that a different disability category set forth in 
        paragraph (1)(A) best describes the condition of such 
        individual. Each decision by the Secretary shall also contain a 
        statement, in understandable language, of the reasons the 
        individual has been determined to fall within a particular 
        disability category set forth in paragraph (1)(A). The 
        Secretary shall conduct hearings in accordance with section 
        1631(c) of such Act with respect to determinations of which 
        disability category best describes the condition of an 
        individual.
            (3) Referral for rehabilitation services.--
                    (A) In general.--Each State conducting a 
                demonstration project shall provide that, except in the 
                case of an individual referred to a facility pursuant 
                to subparagraph (B), the State agency making 
                determinations under paragraphs (2) and (3) of section 
                1614(a) of the Social Security Act with respect to 
                whether an individual is a blind or disabled individual 
                shall promptly refer any individual determined to fall 
                within a disability category set forth in clause (ii), 
                (iii), (v), (vi), or (vii) of paragraph (1)(A) to--
                            (i) the State agency or agencies 
                        administering or supervising the administration 
                        of the State plan approved under title I of the 
                        Rehabilitation Act of 1973 for necessary 
                        vocational rehabilitation services, or
                            (ii) the State unit (if any) designated 
                        under section 705 of such Act to administer a 
                        State plan approved under title VII of such Act 
                        for such services, as may be appropriate.
                    (B) Other individuals.--If an individual is 
                determined in accordance with paragraph (2) or (3) of 
                subsection (a) of section 1614 of the Social Security 
                Act to be a blind or disabled individual and to fall 
                within a disability category described in clause (iii) 
                or (vi) of paragraph (1)(A), the State agency may refer 
                such individual directly to a facility that has been 
                certified by the Secretary as qualified to be a 
                provider of vocational rehabilitation services and 
                shall make payments directly to such facility for 
                vocational rehabilitation services furnished to such 
                individual.
                    (C) Individuals dissatisfied with services.--
                            (i) In general.--Any individual who--
                                    (I) is referred under subparagraph 
                                (B) to a provider of vocational 
                                rehabilitation services, and
                                    (II) is dissatisfied for any reason 
                                with the services of the provider,
                        may request that the State agency refer such 
                        individuals to another provider of such 
                        services.
                            (ii) Action on request.--The State agency 
                        shall promptly make a determination with 
                        respect to such request and notify the 
                        individual of the determination. If the request 
                        is denied, the notice required by this clause 
                        shall contain a statement, in understandable 
                        language, of the reason or reasons for the 
                        denial of the request.
                            (iii) Hearing.--Any individual making a 
                        request under this subparagraph shall be 
                        entitled to a hearing on the determination made 
                        under clause (ii) with respect to the request 
                        to the same extent as provided in section 
                        205(b) of the Social Security Act for decisions 
                        of the Secretary, and to judicial review of the 
                        final decision made after the hearing, as is 
                        provided in section 205(g) of such Act.
            (4) Eligibility for rehabilitation services.--
                    (A) In general.--Each State conducting a 
                demonstration project shall provide that an individual 
                determined in accordance with paragraph (2) or (3) of 
                subsection (a) of section 1614 of the Social Security 
                Act to be a blind or disabled individual or to have 
                some other medically determinable physical or mental 
                impairment, and to fall within a disability category 
                described in clause (iii), (vi), or (viii) of paragraph 
                (1)(A) (other than an individual receiving vocational 
                rehabilitation services in accordance with the 
                provisions of paragraph (3)(B)) shall be eligible for 
                vocational rehabilitation services provided under title 
                I of the Rehabilitation Act of 1973.
                    (B) Other individuals eligible for comprehensive 
                services for independent living.--Each State conducting 
                a demonstration project shall provide that an 
                individual determined in accordance with paragraph (2) 
                or (3) of subsection (a) of section 1614 of the Social 
                Security Act to be a blind or disabled individual and 
                to fall within a disability category set forth in 
                clause (ii) or (v) of paragraph (1)(A) shall be 
                eligible for vocational rehabilitation services 
                provided under title I of the Rehabilitation Act of 
                1973 or comprehensive services for independent living 
                provided under title VII of such Act.
            (5) Reporting by rehabilitation facilities, independent 
        living facilities, and certified providers.--
                    (A) In general.--Each State conducting a 
                demonstration project shall provide that a facility 
                which--
                            (i) is a rehabilitation facility and 
                        provides vocational rehabilitation services to 
                        an individual described in paragraph (4) (other 
                        than an individual determined to fall within 
                        the disability category set forth in paragraph 
                        (1)(A)(vii)), under a State plan approved under 
                        title I of the Rehabilitation Act of 1973, or
                            (ii) provides comprehensive services for 
                        independent living to an individual described 
                        in paragraph (4)(B) under a State plan approved 
                        under title VII of such Act,
                shall report promptly to the agency of such State that 
                determines whether an individual is a blind or disabled 
                individual the termination of the provision of such 
                services to such individual (and the reason or reasons 
                for such termination) and the return to work of such 
                individual.
                    (B) Applicability to referred individuals.--Any 
                provision of this paragraph that is applicable to a 
                rehabilitation facility shall also apply to a provider 
                of vocational rehabilitation services to which 
                individuals are referred in accordance with paragraph 
                (3)(B).
    (d) Individualized Written Plans of Vocational Rehabilitation; 
Standards for Providers.--
            (1) Individualized written plans.--
                    (A) In general.--Each State conducting a 
                demonstration project shall provide that a facility 
                providing vocational rehabilitation services or 
                comprehensive services for independent living to an 
                individual eligible for such services under such 
                project shall do so in accordance with an 
                individualized written plan of vocational 
                rehabilitation for such individual.
                    (B) Development, implementation, and review of 
                plan.--Notwithstanding section 102 of the 
                Rehabilitation Act of 1973, the individualized written 
                plan of vocational rehabilitation required by 
                subparagraph (A) shall be developed, implemented, and 
                reviewed in a manner that is, to the greatest extent 
                practicable and consistent with the provisions of 
                titles II and XVI of the Social Security Act, the same 
                as the manner in which plans required by section 3107 
                of title 38, United States Code, are developed, 
                implemented, and reviewed.
            (2) Standards for providers.--
                    (A) In general.--Each State conducting a 
                demonstration project shall provide that a facility 
                providing vocational rehabilitation services or 
                comprehensive services for independent living to an 
                individual eligible for such services shall meet such 
                standards as the Secretary may by regulation prescribe.
                    (B) Regulations.--In promulgating regulations under 
                subparagraph (A), the Secretary shall consult with the 
                Commissioner of the Rehabilitation Services 
                Administration of the Department of Education and, to 
                the greatest extent practicable and consistent with the 
                purposes of this section, shall incorporate the 
                standards applicable to facilities and providers of 
                such services under titles I and VII of the 
                Rehabilitation Act of 1973 on the day before the date 
                of the enactment of this section.
    (e) Definitions.--For purposes of this section--
            (1) the term ``rehabilitation facility'' shall have the 
        meaning given to such term in section 7(13) of the 
        Rehabilitation Act of 1973;
            (2) the term ``vocational rehabilitation services'' shall 
        have the meaning given to such term in section 103 of such Act; 
        and
            (3) the term ``comprehensive services for independent 
        living'' shall have the meaning given to such term in title VII 
        of such Act.
    (f) Applications.--
            (1) In general.--Each State desiring to conduct a 
        demonstration project under this section shall prepare and 
        submit to the Secretary an application, at such time, in such 
        manner, and containing such information as the Secretary may 
        require.
            (2) Consideration of applications.--The Secretary shall 
        consider all applications received from States desiring to 
        conduct demonstration projects under this section and shall 
        approve 10 applications.
    (g) Reports.--
            (1) By the states.--A State that conducts a demonstration 
        project under this section shall annually prepare and submit to 
        the Secretary a report with respect to the activities conducted 
        by such State under this section.
            (2) By the secretary.--The Secretary shall, within 180 days 
        of the termination of the last of the demonstration projects 
        under this section, conduct an evaluation of such demonstration 
        projects and submit a report to the Congress concerning the 
        effectiveness of such demonstration projects. Such report shall 
        analyze the reports received by the Secretary under paragraph 
        (1).
    (h) Duration.--A demonstration project provided under this section 
shall be conducted for a period not to exceed 5 years after the date of 
the enactment of this section. The Secretary may terminate a project if 
the Secretary determines that the State conducting the project is not 
in substantial compliance with the terms of the application approved by 
the Secretary under this section.
    (i) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out the purposes of 
this section.

SEC. 302. DEMONSTRATION PROJECTS TO IMPROVE REVIEW OF DISABILITY 
              DETERMINATIONS UNDER TITLES II AND XVI OF THE SOCIAL 
              SECURITY ACT.

    (a) In General.--Pursuant to section 1115 of the Social Security 
Act, the Secretary of Health and Human Services (hereafter in this 
section referred to as the ``Secretary'') shall provide for the 
establishment of demonstration projects in 10 States to improve review 
of disability determinations made under titles II and XVI of such Act.
    (b) Demonstration Projects Described.--Under the demonstration 
projects conducted under this section, if a State agency under title II 
or XVI of the Social Security Act determines based upon a written 
application for benefits that an individual is ineligible for benefits 
under such titles due to a finding that such individual does not have a 
disability, such individual shall be granted an opportunity for a face-
to-face interview with such agency. If an individual is determined 
ineligible for benefits under such titles after such face-to-face 
interview, such individual shall be granted a hearing by the Secretary 
within 60 days of such determination without any intervening 
reconsideration of the initial determination of ineligibility.
    (c) Applications.--
            (1) In general.--Each State desiring to conduct a 
        demonstration project under this section shall prepare and 
        submit to the Secretary an application, at such time, in such 
        manner, and containing such information as the Secretary may 
        require.
            (2) Consideration of applications.--The Secretary shall 
        consider all applications received from States desiring to 
        conduct demonstration projects under this section and shall 
        approve 10 applications.
    (d) Reports.--
            (1) By the states.--A State that conducts a demonstration 
        project under this section shall annually prepare and submit to 
        the Secretary a report with respect to the activities conducted 
        by such State under this section.
            (2) By the secretary.--The Secretary shall, within 180 days 
        of the termination of the last of the demonstration projects 
        under this section, conduct an evaluation of such demonstration 
        projects and submit a report to the Congress concerning the 
        effectiveness of such demonstration projects in reducing the 
        burden on State agencies which make disability determinations. 
        Such report shall analyze the reports received by the Secretary 
        under paragraph (1).
    (e) Duration.--A demonstration project provided under this section 
shall be conducted for a period not to exceed 5 years after the date of 
the enactment of this section. The Secretary may terminate a project if 
the Secretary determines that the State conducting the project is not 
in substantial compliance with the terms of the application approved by 
the Secretary under this section.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out the purposes of 
this section.

                                 <all>

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