[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3433 Reported in House (RH)]





                                                 Union Calendar No. 304

105th CONGRESS

  2d Session

                               H. R. 3433

                          [Report No. 105-537]

_______________________________________________________________________

                                 A BILL

  To amend the Social Security Act to establish a Ticket to Work and 
   Self-Sufficiency Program in the Social Security Administration to 
  provide beneficiaries with disabilities meaningful opportunities to 
return to work and to extend Medicare coverage for such beneficiaries, 
and to amend the Internal Revenue Code of 1986 to provide a tax credit 
                 for impairment-related work expenses.

_______________________________________________________________________

                              May 18, 1998

Reported with amendments, committed to the Committee of the Whole House 
          on the State of the Union, and ordered to be printed





                                                 Union Calendar No. 304
105th CONGRESS
  2d Session
                                H. R. 3433

                          [Report No. 105-537]

  To amend the Social Security Act to establish a Ticket to Work and 
   Self-Sufficiency Program in the Social Security Administration to 
  provide beneficiaries with disabilities meaningful opportunities to 
return to work and to extend Medicare coverage for such beneficiaries, 
and to amend the Internal Revenue Code of 1986 to provide a tax credit 
                 for impairment-related work expenses.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 11, 1998

Mr. Bunning  (for himself and Mrs. Kennelly of Connecticut) introduced 
  the following bill; which was referred to the Committee on Ways and 
                                 Means

                              May 18, 1998

  Additional sponsors: Mr. Ramstad, Mr. English of Pennsylvania, Mr. 
 Hayworth, Mr. Hulshof, Mr. Rangel, Mr. Matsui, Mr. Lewis of Georgia, 
 Mr. Neal of Massachusetts, Mrs. Thurman, Ms. Kaptur, Ms. Lofgren, Mr. 
  Klink, Ms. Slaughter, Mr. Shays, Mr. Crane, Mr. Camp, Mr. Burton of 
  Indiana, Mr. Nethercutt, Mr. Houghton, Mr. Nussle, Mr. Weller, Mr. 
        McDermott, Mr. Levin, Mr. Frelinghuysen, and Mr. Waxman

                              May 18, 1998

Reported with amendments, committed to the Committee of the Whole House 
          on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
 [For text of introduced bill, see copy of bill as introduced on March 
                               11, 1998]

_______________________________________________________________________

                                 A BILL


 
  To amend the Social Security Act to establish a Ticket to Work and 
   Self-Sufficiency Program in the Social Security Administration to 
  provide beneficiaries with disabilities meaningful opportunities to 
return to work and to extend Medicare coverage for such beneficiaries, 
and to amend the Internal Revenue Code of 1986 to provide a tax credit 
                 for impairment-related work expenses.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Ticket to Work and 
Self-Sufficiency Act of 1998''.
    (b) Table of Contents.--The table of contents is as follows:


Sec. 1. Short title and table of contents.
Sec. 2. The Ticket to Work and Self-Sufficiency Program.
Sec. 3. Extending medicare coverage for OASDI disability benefit 
                            recipients who are using tickets to work 
                            and self-sufficiency.
Sec. 4. Technical amendments relating to drug addicts and alcoholics.
Sec. 5. Extension of disability insurance program demonstration project 
                            authority.
Sec. 6. Perfecting amendments related to withholding from social 
                            security benefits.
Sec. 7. Treatment of prisoners.
Sec. 8. Revocation by members of the clergy of exemption from social 
                            security coverage.
Sec. 9. Additional technical amendment relating to cooperative research 
                            or demonstration projects under titles II 
                            and XVI.

SEC. 2. 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 at the end the following new 
section:

           ``the ticket to work and self-sufficiency program

    ``Sec. 1147. (a) In General.--The Commissioner of Social Security 
shall establish a Ticket to Work and Self-Sufficiency Program, under 
which a disabled beneficiary may use a ticket to work and self-
sufficiency issued by the Commissioner in accordance with this section 
to obtain employment services, vocational rehabilitation services, or 
other support services from an employment network which is of the 
beneficiary's choice and which is willing to provide such services to 
such beneficiary.
    ``(b) Ticket System.--
            ``(1) Distribution of tickets.--The Commissioner of Social 
        Security may issue a ticket to work and self-sufficiency to 
        disabled beneficiaries for participation in the Program.
            ``(2) Assignment of tickets.--A disabled beneficiary 
        holding a ticket to work and self-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) Periodic elections.--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 (or to revoke any such election) as 
        an employment network. The Commissioner shall provide for 
        periodic opportunities for exercising such elections (and 
        revocations).
            ``(2) Treatment of state agencies.--Any such election (or 
        revocation) by a State agency described in paragraph (1) taking 
        effect during any period for which an individual residing in 
        the State is a disabled beneficiary and a client of the State 
        agency shall not be effective with respect to such individual 
        to the extent that such election (or revocation) would result 
        in any change in the method of payment to the State agency with 
        respect to the individual from the method of payment to the 
        State agency with respect to the individual in effect 
        immediately before such election (or revocation).
            ``(3) Effect of participation by state agency.--
                    ``(A) State agencies participating.--In any case in 
                which a State agency described in paragraph (1) elects 
                under paragraph (1) to participate in the Program--
                            ``(i) the employment services, 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, and
                            ``(ii) the provisions of section 222(d) and 
                        the provisions of subsections (d) and (e) of 
                        section 1615 shall not apply with respect to 
                        such State.
                    ``(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.
            ``(4) Special requirements applicable to cross-referral to 
        certain state agencies.--
                    ``(A) In general.--In any case in which an 
                employment network has been assigned a ticket to work 
                and self-sufficiency by a disabled beneficiary, no 
                State agency shall be deemed required, under this 
                section, 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).
                    ``(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 of Social 
                Security 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 contract required under subparagraph (A) or 
                without having entered into such a contract.
    ``(d) Responsibilities of the Commissioner of Social Security.--
            ``(1) Selection and qualifications of program managers.--
        The Commissioner of Social Security shall enter into agreements 
        with one 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 or employment services.
            ``(2) Tenure, renewal, and early termination.--Each 
        agreement entered into under paragraph (1) shall provide for 
        early termination upon failure to meet performance standards 
        which shall be specified in the agreement and which shall be 
        weighted to take into account any performance in prior terms. 
        Such performance standards shall include (but are not limited 
        to)--
                    ``(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.--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).
            ``(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 take into account 
        the views of consumers and the program manager under which the 
        employment networks serve and shall consult with providers of 
        services to develop performance measurements. The Commissioner 
        shall ensure that the results of the periodic reviews are made 
        available to beneficiaries who are prospective service 
        recipients as they select employment networks. The Commissioner 
        shall ensure the performance of periodic surveys of 
        beneficiaries receiving services under the Program designed to 
        measure customer service satisfaction.
            ``(7) Dispute resolution.--The Commissioner shall provide 
        for a mechanism for resolving disputes between beneficiaries 
        and employment networks and between program managers and 
        employment networks. The Commissioner shall afford a party to 
        such a dispute a reasonable opportunity for a full and fair 
        review of the matter in dispute.
    ``(e) Program Managers.--
            ``(1) In general.--A program manager shall conduct tasks 
        appropriate to assist the 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 format.
            ``(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. Such services may include 
        case management, benefits counseling, supported employment, 
        career planning, career plan development, vocational 
        assessment, job training, placement, follow-up services, and 
        such other services as may be specified by the Commissioner 
        under the Program. The program manager shall ensure that such 
        services are coordinated.
    ``(f) Employment Networks.--
            ``(1) Qualifications for employment networks.--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, which 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). No employment network may serve under the 
        Program unless it demonstrates to the Commissioner substantial 
        expertise and experience in the field of employment services, 
        vocational rehabilitation services, or other support services 
        for individuals with disabilities and provides an array of such 
        services. An employment network shall consist of either a 
        single provider of such services or of an association of such 
        providers organized so as to 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,
                    ``(B) meet, and maintain compliance with, both 
                general selection criteria (such as professional and 
                governmental certification and educational credentials) 
                and specific selection criteria (such as the extent of 
                work experience by the provider with specific 
                populations), and
                    ``(C) 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 pertaining to the 
        beneficiary. 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) In general.--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 as defined by the Commissioner, 
                and
                    ``(B) develop and implement each such individual 
                work plan, in the case of each beneficiary receiving 
                such services, in a manner that affords such 
                beneficiary the opportunity to exercise informed choice 
                in selecting an employment goal and specific services 
                needed to achieve that employment goal.
        A beneficiary's individual work plan shall take effect upon 
        approval by the beneficiary.
            ``(2) Vocational evaluation.--In devising the work plan, 
        the employment network shall undertake a vocational evaluation 
        with respect to the beneficiary. Each vocational evaluation 
        shall set forth in writing such elements and shall be in such 
        format as the Commissioner shall prescribe. The Commissioner 
        may provide for waiver by the beneficiary of such a vocational 
        evaluation, subject to regulations which shall be prescribed by 
        the Commissioner providing for the permissible timing of, and 
        the circumstances permitting, such a waiver.
    ``(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) Method of payment to employment networks.--
                Any such election by an employment network taking 
                effect during any period for which a disabled 
                beneficiary is receiving services from such employment 
                network shall not be effective with respect to such 
                beneficiary to the extent that such election would 
                result in any change in the method of payment to the 
                employment network with respect to services provided to 
                such beneficiary from the method of payment to the 
                employment network with respect to services provided to 
                such beneficiary as of immediately before such 
                election.
            ``(2) Outcome payment system.--
                    ``(A) In general.--The outcome payment system shall 
                consist of a payment structure 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 (2) 
                and (3) of subsection (k)) are not payable to such 
                individual.
                    ``(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 (2) and (3) 
                        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 one or more 
                milestones, with respect to beneficiaries receiving 
                services from an employment network under the Program, 
                which are directed toward the goal of permanent 
                employment. Such milestones shall form a part of a 
                payment structure which provides, in addition to 
                payments made during outcome payment periods, payments 
                made prior to outcome payment periods in amounts based 
                on the attainment of such 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.--For purposes of 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 at least 18 
                        years of age.
                    ``(B) Outcome payment period.--The term `outcome 
                payment period' means, in connection with any 
                individual who had assigned a ticket to work and self-
                sufficiency to an employment network under the Program, 
                a period--
                            ``(i) beginning with the first month, 
                        ending after the date on which such ticket was 
                        assigned to the employment network, for which 
                        benefits (described in paragraphs (2) and (3) 
                        of subsection (k)) are not payable to such 
                        individual by reason of engagement in 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 
                        work activity.
            ``(5) Periodic review and alterations of prescribed 
        schedules.--
                    ``(A) Percentages and periods.--The Commissioner of 
                Social Security 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 amount 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 Ticket to 
                Work and Self-Sufficiency Advisory Panel, 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 Ticket to Work 
                and Self-Sufficiency Advisory Panel, or other reliable 
                sources.
    ``(i) Suspension of Disability Reviews.--During any period for 
which an individual is using 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) Authorizations.--
            ``(1) Title ii disability beneficiaries.--There are 
        authorized to be transferred from the Federal Old-Age and 
        Survivors Insurance Trust Fund and the Federal Disability 
        Insurance Trust Fund each fiscal year such sums as may be 
        necessary to carry out the provisions of this section with 
        respect to title II disability beneficiaries. Money paid from 
        the Trust Funds under this section with respect to title II 
        disability beneficiaries who are entitled to benefits under 
        section 223 or who are entitled to benefits under section 
        202(d) on the basis of the wages and self-employment income of 
        such beneficiaries, shall be charged to the Federal Disability 
        Insurance Trust Fund, and all other money paid from the Trust 
        Funds under this section shall be charged to the Federal Old-
        Age and Survivors Insurance Trust Fund. The Commissioner of 
        Social Security shall determine according to such methods and 
        procedures as shall be prescribed under this section--
                    ``(A) the total amount to be paid to program 
                managers and employment networks under this section, 
                and
                    ``(B) subject to the provisions of the preceding 
                sentence, the amount which should be charged to each of 
                the Trust Funds.
            ``(2) Title xvi disability beneficiaries.--Amounts 
        authorized to be appropriated to the Social Security 
        Administration under section 1601 (as in effect pursuant to the 
        amendments made by section 301 of the Social Security 
        Amendments of 1972) shall include amounts necessary to carry 
        out the provisions of this section with respect to title XVI 
        disability beneficiaries.
    ``(k) Definitions.--For purposes of this section--
            ``(1) Disabled beneficiary.--The term `disabled 
        beneficiary' means a title II disability beneficiary or a title 
        XVI disability beneficiary.
            ``(2) 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.
            ``(3) Title xvi disability beneficiary.--The term `title 
        XVI disability beneficiary' means an individual eligible for 
        supplemental security income benefits under title XVI on the 
        basis of blindness (within the meaning of section 1614(a)(2)) 
        or 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.
            ``(4) Supplemental security income benefit.--The term 
        `supplemental security income benefit under title XVI' means a 
        cash benefit under section 1611 or 1619(a), and does not 
        include a State supplementary payment, administered federally 
        or otherwise.
    ``(l) Regulations.--The Commissioner of Social Security shall 
prescribe such regulations as are necessary to carry out the provisions 
of this section.''.
    (b) Conforming Amendments.--
            (1) Amendments to title ii.--
                    (A) Section 221(c) of such Act (42 U.S.C. 421(c)) 
                is amended by adding at the end the following new 
                paragraph:
    ``(4) For suspension of reviews under this subsection in the case 
of an individual using a ticket to work and self-sufficiency, see 
section 1147(i).''.
                    (B) Section 222(a) of such Act (42 U.S.C. 422(a)) 
                is repealed.
                    (C) Section 222(b) of such Act (42 U.S.C. 422(b)) 
                is repealed.
                    (D) Section 225(b)(1) of such Act (42 U.S.C. 
                425(b)(1)) is amended by striking ``a program of 
                vocational rehabilitation services'' and inserting ``a 
                program consisting of the Ticket to Work and Self-
                Sufficiency Program under section 1147 or another 
                program of vocational rehabilitation services, 
                employment services, or other support services''.
            (2) Amendments to title xvi.--
                    (A) Section 1615(a) of such Act (42 U.S.C. 
                1382d(a)) is amended to read as follows:
    ``Sec. 1615. (a) In the case of any blind or disabled individual 
who--
            ``(1) has not attained age 16, and
            ``(2) with respect to whom benefits are paid under this 
        title,
the Commissioner of Social Security shall make provision for referral 
of such individual to the appropriate State agency administering the 
State program under title V.''.
                    (B) Section 1615(c) of such Act (42 U.S.C. 
                1382d(c)) is repealed.
                    (C) Section 1631(a)(6)(A) of such Act (42 U.S.C. 
                1383(a)(6)(A)) is amended by striking ``a program of 
                vocational rehabilitation services'' and inserting ``a 
                program consisting of the Ticket to Work and Self-
                Sufficiency Program under section 1147 or another 
                program of vocational rehabilitation services, 
                employment services, or other support services''.
                    (D) Section 1633(c) of such Act (42 U.S.C. 
                1383b(c)) is amended--
                            (i) by inserting ``(1)'' after ``(c)''; and
                            (ii) by adding at the end the following new 
                        paragraph:
    ``(2) For suspension of continuing disability reviews and other 
reviews under this title similar to reviews under section 221 in the 
case of an individual using a ticket to work and self-sufficiency, see 
section 1147(i).''.
    (c) Effective Date.--Subject to subsection (d), the amendments made 
by subsections (a) and (b) shall take effect with the first month 
following one year after the date of the enactment of this Act.
    (d) Graduated Implementation of Program.--
            (1) In general.--Not later than one year after the date of 
        the enactment of this Act, the Commissioner of Social Security 
        shall commence 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 Program is fully implemented as soon as practicable on 
        or after the effective date specified in subsection (c) but not 
        later than six years after such date.
            (4) Ongoing evaluation of program.--
                    (A) In general.--The Commissioner shall design and 
                conduct a series of evaluations to assess the cost-
                effectiveness of activities 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) Methodology.--
                            (i) Design and implementation.--The 
                        Commissioner shall design 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. In 
                        designing and carrying out such evaluations, 
                        the Commissioner shall consult with the 
                        Comptroller General of the United States and 
                        other agencies of the Federal Government and 
                        with private organizations with appropriate 
                        expertise. Before provision of services begins 
                        under any phase of Program implementation, the 
                        Commissioner shall ensure that plans for such 
                        evaluations and data collection methods are in 
                        place and ready for implementation.
                            (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 
                                disabled beneficiaries;
                                    (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 thier tickets.
                    (C) 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 such 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 the 
                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 
                six years after the effective date provided in 
                subsection (c).
    (e) The Ticket to Work and Self-Sufficiency Advisory Panel.--
            (1) Establishment.--There is established in the executive 
        branch a panel to be known as the ``Ticket to Work and Self-
        Sufficiency Advisory Panel'' (in this subsection referred to as 
        the ``Panel'').
            (2) Duties of panel.--It shall be the duty of the Panel 
        to--
                    (A) advise the Commissioner of Social Security on 
                establishing phase-in sites for the Ticket to Work and 
                Self-Sufficiency Program and on fully implementing the 
                Program thereafter,
                    (B) advise the Commissioner with respect to 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,
                    (C) advise the Commissioner regarding the most 
                effective designs for research and demonstration 
                projects associated with the Program or conducted 
                pursuant to subsection (h),
                    (D) advise the Commissioner on the development of 
                performance measurements relating to quality assurance 
                under section 1147(d)(6) of the Social Security Act, 
                and
                    (E) furnish progress reports on the Program to the 
                President and each House of the Congress.
            (3) Membership.--
                    (A) Number and appointment.--The Panel shall be 
                composed of 6 members as follows:
                            (i) 1 member appointed by the Chairman of 
                        the Committee on Ways and Means of the House of 
                        Representatives;
                            (ii) 1 member appointed by the ranking 
                        minority member of the Committee on Ways and 
                        Means of the House of Representatives;
                            (iii) 1 member appointed by the Chairman of 
                        the Committee on Finance of the Senate;
                            (iv) 1 member appointed by the ranking 
                        minority member of the Committee on Finance of 
                        the Senate; and
                            (v) 2 members appointed by the President, 
                        who may not be of the same political party.
                    (B) Representation.--Of the members appointed under 
                subparagraph (A), at least 4 shall have experience or 
                expert knowledge as a recipient, provider, employer, or 
                employee in the fields of, or related to, employment 
                services, vocational rehabilitation services, and other 
                support services, of whom--
                            (i) at least one shall represent the 
                        interests of recipients of employment services, 
                        vocational rehabilitation services, and other 
                        support services,
                            (ii) at least one shall represent the 
                        interests of providers of employment services, 
                        vocational rehabilitation services, and other 
                        support services,
                            (iii) at least one shall represent the 
                        interests of private employers,
                            (iv) at least one shall represent the 
                        interests of employees, and
                            (v) at least one shall be an individual who 
                        is or has been a recipient of benefits under 
                        title II or title XVI based on disability.
                    (C) Terms.--
                            (i) In general.--Each member shall be 
                        appointed for a term of 4 years (or, if less, 
                        for the remaining life of the Panel), except as 
                        provided in clauses (ii) and (iii). The initial 
                        members shall be appointed not later than 90 
                        days after the date of the enactment of this 
                        Act.
                            (ii) Terms of initial appointees.--As 
                        designated by the President at the time of 
                        appointment, of the members first appointed--
                                    (I) 3 of the members appointed 
                                under subparagraph (A) shall be 
                                appointed for a term of 2 years, and
                                    (II) 3 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 equal to the daily equivalent of the rate of basic 
                pay for level 4 of the Senior Executive Service, as in 
                effect from time to time under section 5382 of title 5, 
                United States Code, for each day (including travel 
                time) during which they are engaged in the actual 
                performance of duties vested in the Panel.
                    (E) Travel expenses.--Each member shall receive 
                travel expenses, including per diem in lieu of 
                subsistence, in accordance with sections 5702 and 5703 
                of title 5, United States Code.
                    (F) Quorum.--4 members of the Panel shall 
                constitute a quorum but a lesser number may hold 
                hearings.
                    (G) Chairperson.--The Chairperson of the Panel 
                shall be designated by the President. The term of 
                office of the Chairperson shall be 4 years.
                    (H) Meetings.--The Panel shall meet at least 
                quarterly and at other times at the call of the 
                Chairperson or a majority of its members.
            (4) Director and staff of panel; experts and consultants.--
                    (A) Director.--The Panel shall have a Director who 
                shall be appointed by the Panel. The Director shall be 
                paid at a rate not to exceed the maximum rate of pay 
                payable for GS-15 of the General Schedule.
                    (B) Staff.--Subject to rules prescribed by the 
                Panel, the Director may appoint and fix the pay of 
                additional personnel as the Director considers 
                appropriate.
                    (C) Experts and consultants.--Subject to rules 
                prescribed by the Panel, the Director may procure 
                temporary and intermittent services under section 
                3109(b) of title 5, United States Code.
                    (D) Staff of federal agencies.--Upon request of the 
                Panel, the head of any Federal department or agency may 
                detail, on a reimbursable basis, any of the personnel 
                of that department or agency to the Panel to assist it 
                in carrying out its duties under this Act.
            (5) Powers of panel.--
                    (A) Hearings and sessions.--The Panel may, for the 
                purpose of carrying out its duties under this 
                subsection, hold such hearings, sit and act at such 
                times and places, and take such testimony and evidence 
                as the Panel 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 section.
                    (C) Mails.--The Panel may use the United States 
                mails in the same manner and under the same conditions 
                as other departments and agencies of the United States.
                    (D) Administrative support services.--Upon the 
                request of the Panel, the Administrator of General 
                Services shall provide to the Panel, on a reimbursable 
                basis, the administrative support services necessary 
                for the Panel to carry out its duties under this 
                subsection.
            (6) Reports.--
                    (A) Interim reports.--The Panel shall submit to the 
                President and the Congress interim reports at least 
                annually.
                    (B) Final report.--The Panel shall transmit a final 
                report to the President and the Congress not later than 
                eight years after the date of the enactment of this 
                Act. The final report shall contain a detailed 
                statement of the findings and conclusions of the Panel, 
                together with its recommendations for legislation and 
                administrative actions which the Panel considers 
                appropriate.
            (7) Termination.--The Panel shall terminate 30 days after 
        the date of the submission of its final report under paragraph 
        (6)(B).
            (8) Authorization of appropriations.--There are authorized 
        to be appropriated from the Federal Old-Age and Survivors 
        Insurance Trust Fund, the Federal Disability Insurance Trust 
        Fund, and the general fund of the Treasury, as appropriate, 
        such sums as are necessary to carry out this subsection.
    (f) Specific Regulations Required.--
            (1) In general.--The Commissioner of Social Security shall 
        prescribe such regulations as are 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 (but are not limited to)--
                    (A) the form and manner in which tickets to work 
                and self-sufficiency may be distributed to 
                beneficiaries pursuant to section 1147(b)(1) of such 
                Act;
                    (B) the format and wording of such 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 1147(c)(1) of such Act and 
                provision for periodic opportunities for exercising 
                such elections (and revocations);
                    (D) the status of State agencies under section 
                1147(c)(2) at the time that State agencies exercise 
                elections (and revocations) under such section 
                1147(c)(1);
                    (E) the terms of agreements to be entered into with 
                program managers pursuant to section 1147(d) of such 
                Act, including (but not limited to)--
                            (i) the terms by which program managers are 
                        precluded from direct participation in the 
                        delivery of services pursuant to section 
                        1147(d)(3) of such Act,
                            (ii) standards which must be met by quality 
                        assurance measures referred to in paragraph (6) 
                        of section 1147(d) and methods of recruitment 
                        of employment networks utilized pursuant to 
                        paragraph (2) of section 1147(e), and
                            (iii) the format under which dispute 
                        resolution will operate under section 
                        1147(d)(7).
                    (F) the terms of agreements to be entered into with 
                employment networks pursuant to section 1147(d)(4) of 
                such Act, including (but not limited to)--
                            (i) the manner in which service areas are 
                        specified pursuant to section 1147(f)(2)(A) of 
                        such Act,
                            (ii) the general selection criteria and the 
                        specific selection criteria which are 
                        applicable to employment networks under section 
                        1147(f)(2)(B) of such Act in selecting service 
                        providers,
                            (iii) specific requirements relating to 
                        annual financial reporting by employment 
                        networks pursuant to section 1147(f)(3) of such 
                        Act, and
                            (iv) the national model to which periodic 
                        outcomes reporting by employment networks must 
                        conform under section 1147(f)(4) of such Act;
                    (G) standards which must be met by individual work 
                plans pursuant to section 1147(g) of such Act;
                    (H) standards which must be met by payment systems 
                required under section 1147(h) of such Act, including 
                (but not limited to)--
                            (i) the form and manner in which elections 
                        by employment networks of payment systems are 
                        to be exercised pursuant to section 
                        1147(h)(1)(A),
                            (ii) the terms which must be met by an 
                        outcome payment system under section 
                        1147(h)(2);
                            (iii) the terms which must be met by an 
                        outcome-milestone payment system under section 
                        1147(h)(3);
                            (iv) any revision of the percentage 
                        specified in paragraph (2)(C) of section 
                        1147(h) of such Act or the period of time 
                        specified in paragraph (4)(B) of such section 
                        1147(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.
    (g) Work Incentive Specialists.--The Commissioner shall establish a 
corps of trained, accessible, and responsive work incentive specialists 
to specialize in title II and title XVI disability work incentives for 
the purpose of disseminating accurate information to disabled 
beneficiaries (as defined in section 1147(k)(1) of the Social Security 
Act as amended by this Act) with respect to inquiries and issues 
relating to work incentives.
    (h) Demonstration Projects Providing for Reductions in Disability 
Insurance Benefits Based on Earnings. --
            (1) Authority.--The Commissioner 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 1147(k)(2) of the Social 
        Security Act, as amended by this Act) under which each $1 of 
        benefits payable under section 223, or under section 202 based 
        on the beneficiary's disability, is reduced for each $2 of such 
        beneficiary's earnings that is above a level to be determined 
        by the Commissioner. Such projects shall be conducted at a 
        number of localities which the Commissioner shall determine is 
        sufficient to adequately evaluate the appropriateness of 
        national implementation of such a program. Such projects shall 
        identify reductions in Federal expenditures that may result 
        from the permanent implementation of such a program.
            (2) Scope and scale and matters to be determined.--
                    (A) In general.--The demonstration projects 
                developed under paragraph (1) shall be of sufficient 
                duration, shall be of sufficient scope, and shall be 
                carried out on a wide enough scale to permit a thorough 
                evaluation of the project to determine--
                            (i) the effects, if any, of induced entry 
                        and reduced exit,
                            (ii) the extent, if any, to which the 
                        project being tested is affected by whether it 
                        is in operation in a locality within an area 
                        under the administration of the Ticket to Work 
                        and Self-Sufficiency Program, and
                            (iii) the savings that accrue to the Trust 
                        Funds and other Federal programs under the 
                        project being tested.
                The Commissioner shall take into account advice 
                provided by the Ticket to Work and Self-Sufficiency 
                Advisory Panel pursuant to subsection (e)(2)(C).
                    (B) Additional matters.--The Commissioner shall 
                also determine with respect to each project--
                            (i) the annual cost (including net cost) of 
                        the project and the annual cost (including net 
                        cost) that would have been incurred in the 
                        absence of the project,
                            (ii) the determinants of return to work, 
                        including the characteristics of the 
                        beneficiaries who participate in the project, 
                        and
                            (iii) the employment outcomes, 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.
            (3) Waivers.--The Commissioner may waive compliance with 
        the benefit provisions of title II of the Social Security Act, 
        and the Secretary of Health and Human Services may waive 
        compliance with the benefit requirements of title XVIII of such 
        Act, in so far as is necessary for a thorough evaluation of the 
        alternative methods under consideration. No such project shall 
        be actually placed in operation 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 paragraph (1).
            (4) Interim reports.--On or before June 9 in 2000 and each 
        of the succeeding years thereafter, the Commissioner shall 
        submit to the Congress an interim report on the progress of the 
        demonstration projects carried out under this subsection 
        together with any related data and materials which the 
        Commissioner may consider appropriate.
            (5) Final report.--The Commissioner shall submit to the 
        Congress a final report with respect to all demonstration 
        projects carried out under this section no later than one year 
        after their completion.
            (6) Expenditures.--Expenditures made for demonstration 
        projects under this subsection shall be made from the Federal 
        Disability Insurance Trust Fund and the Federal Old-Age and 
        Survivors Insurance Trust Fund, as determined appropriate by 
        the Commissioner, and from the Federal Hospital Insurance Trust 
        Fund and the Federal 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.
    (i) Study by General Accounting Office of Existing Disability-
Related Employment Incentives.--
            (1) Study.--As soon as practicable after the date of the 
        enactment of this Act, the Comptroller General of the United 
        States shall undertake a study to assess existing tax credits 
        and other disability-related employment incentives under the 
        Americans with Disabilities Act of 1990 and other Federal laws. 
        In such study, the Comptroller General shall specifically 
        address the extent to which such credits and other incentives 
        would encourage employers to hire and retain individuals with 
        disabilities under the Ticket to Work and Self-Sufficiency 
        Program.
            (2) Report.--Not later than 3 years after the date of the 
        enactment of this Act, the Comptroller General shall transmit 
        to the Committee on Ways and Means of the House of 
        Representatives and the Committee on Finance of the Senate a 
        written 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 may determine to be 
        appropriate.
    (j) Study by General Accounting Office of Existing Coordination of 
the DI and SSI Programs as They Relate to Individuals Entering or 
Leaving Concurrent Entitlement.--
            (1) Study.--As soon as practicable after the date of the 
        enactment of this Act, the Comptroller General of the United 
        States shall undertake a study to evaluate the coordination 
        under current law of the disability insurance program under 
        title II of the Social Security Act and the supplemental 
        security income program under title XVI of such Act, as such 
        programs relate to individuals entering or leaving concurrent 
        entitlement under such programs. In such study, the Comptroller 
        General shall specifically address the effectiveness of work 
        incentives under such programs with respect to such individuals 
        and the effectiveness of coverage of such individuals under 
        titles XVIII and XIX of such Act.
            (2) Report.--Not later than 18 months after the date of the 
        enactment of this Act, the 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 may determine to be 
        appropriate.

SEC. 3. EXTENDING MEDICARE COVERAGE FOR OASDI DISABILITY BENEFIT 
              RECIPIENTS WHO ARE USING TICKETS TO WORK AND SELF-
              SUFFICIENCY.

    (a) In General.--The next to last sentence of section 226(b) of the 
Social Security Act (42 U.S.C. 426) is amended--
            (1) by striking ``throughout all of which'' and inserting 
        ``throughout the first 24 months of which'', and
            (2) by inserting after ``but not in excess of 24 such 
        months'' the following: ``(plus 24 additional such months in 
        the case of an individual who the Commissioner determines is 
        using a ticket to work and self-sufficiency issued under 
        section 1147, but only for additional months that occur in the 
        7-year period beginning on the date of the enactment of the 
        Ticket to Work and Self-Sufficiency Act of 1998)''.
    (b) Report.--Not later than 6 months prior to the end of the 7-year 
period beginning on the date of the enactment of this Act, the 
Secretary of Health and Human Services and the Commissioner of Social 
Security shall submit in writing to each House of the Congress their 
recommendations for further legislative action with respect to the 
amendments made by subsection (a), taking into account experience 
derived from efforts to achieve full implementation of the Ticket to 
Work and Self Sufficiency Program under section 1147 of the Social 
Security Act.

SEC. 4. 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 new subparagraphs:
                    ``(D) For purposes of this paragraph, an 
                individual's claim, with respect to benefits under 
                title II of the Social Security Act based on 
                disability, which has been denied in whole before the 
                date of the enactment of this Act, may not be 
                considered to be finally adjudicated before such date 
                if, on or after such date--
                            ``(i) there is pending a request for 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 such Act (Public Law 104-121; 110 Stat. 853) 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 the 
                        enactment of this Act, or
                            ``(ii) whose entitlement to benefits is 
                        based upon an entitlement redetermination made 
                        pursuant to subparagraph (C).''.
    (c) Effective Dates.--The amendments made by this section shall 
take effect as if included in the enactment of section 105 of the 
Contract with America Advancement Act of 1996 (Public Law 104-121; 110 
Stat. 852 et seq.).

SEC. 5. EXTENSION OF DISABILITY INSURANCE PROGRAM DEMONSTRATION PROJECT 
              AUTHORITY.

    (a) In General.--Section 505 of the Social Security Disability 
Amendments of 1980 (Public Law 96-265; 94 Stat. 473), as amended by 
section 12101 of the Consolidated Omnibus Budget Reconciliation Act of 
1985 (Public Law 99-272; 100 Stat. 282), section 10103 of the Omnibus 
Budget Reconciliation Act of 1989 (Public Law 101-239; 103 Stat. 2472), 
section 5120(f) of the Omnibus Budget Reconciliation Act of 1990 
(Public Law 101-508; 104 Stat. 1388-282), and section 315 of the Social 
Security Independence and Program Improvements Act of 1994 (Public Law 
103-296; 108 Stat. 1531), is further amended--
            (1) in paragraph (1) of subsection (a), by adding at the 
        end the following new sentence: ``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 paragraph (3) of subsection (a), by striking ``June 
        10, 1996'' and inserting ``June 10, 2001'';
            (3) in paragraph (4) of subsection (a), 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, 2001''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date of the enactment of this Act.

SEC. 6. PERFECTING AMENDMENTS RELATED TO WITHHOLDING FROM SOCIAL 
              SECURITY BENEFITS.

    (a) Inapplicability of Assignment Prohibition.--Section 207 of the 
Social Security Act (42 U.S.C. 407) is amended by adding at the end the 
following new subsection:
    ``(c) Nothing in this section shall be construed to prohibit 
withholding taxes from any benefit under this title, if such 
withholding is done pursuant to a request made in accordance with 
section 3402(p)(1) of the Internal Revenue Code of 1986 by the person 
entitled to such benefit or such person's representative payee.''.
    (b) Proper Allocation of Costs of Withholding Between the Trust 
Funds and the General Fund.--Section 201(g) of such Act (42 U.S.C. 
401(g)) is amended--
            (1) by inserting before the period in paragraph (1)(A)(ii) 
        the following: ``and the functions of the Social Security 
        Administration in connection with the withholding of taxes from 
        benefits, as described in section 207(c), pursuant to requests 
        by persons entitled to such benefits or such persons' 
        representative payee'';
            (2) by inserting before the period at the end of paragraph 
        (1)(A) the following: ``and the functions of the Social 
        Security Administration in connection with the withholding of 
        taxes from benefits, as described in section 207(c), pursuant 
        to requests by persons entitled to such benefits or such 
        persons' representative payee'';
            (3) in paragraph (1)(B)(i)(I), by striking ``subparagraph 
        (A)),'' and inserting ``subparagraph (A)) and the functions of 
        the Social Security Administration in connection with the 
        withholding of taxes from benefits, as described in section 
        207(c), pursuant to requests by persons entitled to such 
        benefits or such persons' representative payee,'';
            (4) in paragraph (1)(C)(iii), by inserting before the 
        period the following: ``and the functions of the Social 
        Security Administration in connection with the withholding of 
        taxes from benefits, as described in section 207(c), pursuant 
        to requests by persons entitled to such benefits or such 
        persons' representative payee'';
            (5) in paragraph (1)(D), by inserting after ``section 232'' 
        the following: ``and the functions of the Social Security 
        Administration in connection with the withholding of taxes from 
        benefits as described in section 207(c)''; and
            (6) in paragraph (4), by inserting after the first sentence 
        the following: ``The Board of Trustees of such Trust Funds 
        shall prescribe the method of determining the costs which 
        should be borne by the general fund in the Treasury of carrying 
        out the functions of the Social Security Administration in 
        connection with the withholding of taxes from benefits, as 
        described in section 207(c), pursuant to requests by persons 
        entitled to such benefits or such persons' representative 
        payee.''.
    (c) Effective Date.--The amendments made by subsection (b) shall 
apply to benefits paid on or after the first day of the second month 
beginning after the month in which this Act is enacted.

SEC. 7. TREATMENT OF PRISONERS.

    (a) Implementation of Prohibition Against Payment of Title II 
Benefits to Prisoners.--
            (1) In general.--Section 202(x)(3) of the Social Security 
        Act (42 U.S.C. 402(x)(3)) is amended--
                    (A) by inserting ``(A)'' after ``(3)''; and
                    (B) by adding at the end the following new 
                subparagraph:
    ``(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). Sums so transferred shall be treated as direct spending 
for purposes of the Balanced Budget and Emergency Deficit Control Act 
of 1985 and excluded from budget totals in accordance with section 
13301 of the Budget Enforcement Act of 1990.
    ``(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 such Act (42 
        U.S.C. 402(x)(1)(A)) is amended--
                    (A) in the matter preceding clause (i), by striking 
                ``during'' and inserting ``throughout'';
                    (B) in clause (i), by striking ``an offense 
                punishable by imprisonment for more than 1 year 
                (regardless of the actual sentence 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 new 
                clause:
    ``(ii) The dollar amounts specified in clause (i)(II) shall be 
reduced by 50 percent if the Commissioner is also required to make a 
payment to the institution with respect to the same individual under an 
agreement entered into under section 202(x)(3)(B).''.
            (2) Expansion of categories of institutions eligible to 
        enter into agreements with the commissioner.--Section 
        1611(e)(1)(I)(i) of such Act (42 U.S.C. 1382(e)(1)(I)(i)) is 
        amended in the matter preceding subclause (I) by striking 
        ``institution'' and all that follows through ``section 
        202(x)(1)(A),'' and inserting ``institution comprising a jail, 
        prison, penal institution, or correctional facility, or with 
        any other interested State or local institution a purpose of 
        which is to confine individuals as described in section 
        202(x)(1)(A)(ii),''.
            (3) 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 such Act as amended 
        by paragraph (2) shall be deemed a reference to such section 
        202(x)(1)(A)(ii) as amended by subsection (b)(1)(C).
    (d) Continued Denial of Benefits to Sex Offenders Remaining 
Confined to Public Institutions Upon Completion of Prison Term.--
            (1) In general.--Section 202(x)(1)(A) of the Social 
        Security Act (42 U.S.C. 402(x)(1)(A)) is amended--
                    (A) in clause (i), by striking ``or'' at the end;
                    (B) in clause (ii)(IV), by striking the period and 
                inserting ``, or''; and
                    (C) by adding at the end the following new clause:
            ``(iii) immediately upon completion of confinement as 
        described in clause (i) pursuant to conviction of a criminal 
        offense an element of which is sexual activity, is confined by 
        court order in an institution at public expense pursuant to a 
        finding that the individual is a sexually dangerous person or a 
        sexual predator or a similar finding.''.
            (2) Conforming amendment.--Section 202(x)(1)(B)(ii) of such 
        Act (42 U.S.C. 402(x)(1)(B)(ii)) is amended by striking 
        ``clause (ii)'' and inserting ``clauses (ii) and (iii)''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply with respect to benefits for months ending after 
        the date of the enactment of this Act.

SEC 8. REVOCATION BY MEMBERS OF THE CLERGY OF EXEMPTION FROM SOCIAL 
              SECURITY COVERAGE.

    (a) In General.--Notwithstanding section 1402(e)(4) of the Internal 
Revenue Code of 1986, any exemption which has been received under 
section 1402(e)(1) of such Code by a duly ordained, commissioned, or 
licensed minister of a church, a member of a religious order, or a 
Christian Science practitioner, and which is effective for the taxable 
year in which this Act is enacted, may be revoked by filing an 
application therefor (in such form and manner, and with such official, 
as may be prescribed 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, 1998. Any such 
revocation shall be effective (for purposes of chapter 2 of the 
Internal Revenue Code of 1986 and title II of the Social Security Act), 
as specified in the application, either with respect to the applicant's 
first taxable year beginning after December 31, 1998, or with respect 
to the applicant's second taxable year beginning after such date, and 
for all succeeding 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 section 1402 (c)(4) or (c)(5) of such Code) except for 
the exemption under section 1402(e)(1) of such Code.
    (b) Effective Date.--Subsection (a) shall apply with respect to 
service performed (to the extent specified in such subsection) in 
taxable years beginning after December 31, 1998, and with respect to 
monthly insurance benefits payable under title II of the Social 
Security Act on the basis of the wages and self-employment income of 
any individual for months in or after the calendar year in which such 
individual's application for revocation (as described in such 
subsection) is effective (and lump-sum death payments payable under 
such title on the basis of such wages and self-employment income in the 
case of deaths occurring in or after such calendar year).

SEC. 9. ADDITIONAL TECHNICAL AMENDMENT RELATING TO COOPERATIVE RESEARCH 
              OR 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).
            Amend the title so as to read: ``A bill to amend the Social 
        Security Act to establish a Ticket to Work and Self-Sufficiency 
        Program in the Social Security Administration to provide 
        beneficiaries with disabilities meaningful opportunities to 
        work, to extend Medicare coverage for such beneficiaries, and 
        to make additional miscellaneous amendments relating to social 
        security.''.