[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1091 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 1091

 To amend the Social Security Act to expand the availability of health 
care coverage for working individuals with disabilities, to establish a 
  Ticket to Work and Self-Sufficiency Program in the Social Security 
 Administration to provide beneficiaries with disabilities meaningful 
             opportunities to work, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 11, 1999

 Mr. Hulshof introduced the following bill; which was referred to the 
   Committee on Ways and Means, and in addition to the Committee on 
Commerce, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To amend the Social Security Act to expand the availability of health 
care coverage for working individuals with disabilities, to establish a 
  Ticket to Work and Self-Sufficiency Program in the Social Security 
 Administration to provide beneficiaries with disabilities meaningful 
             opportunities to work, and for other purposes.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Ticket to Work and 
Self-Sufficiency Act of 1999''.
    (b) Table of Contents.--The table of contents is as follows:

Sec. 1. Short title and table of contents.
         TITLE I--EXPANDED AVAILABILITY OF HEALTH CARE SERVICES

Sec. 101. Expanding State options under Medicaid for workers with 
                            disabilities.
Sec. 102. Extending Medicare coverage for OASDI disability benefit 
                            recipients who are using tickets to work 
                            and self-sufficiency.
Sec. 103. Grants to develop and establish State infrastructures to 
                            support working individuals with 
                            disabilities.
Sec. 104. Demonstration of coverage of workers with potentially severe 
                            disabilities.
         TITLE II--TICKET TO WORK AND SELF-SUFFICIENCY PROGRAM

Sec. 201. Establishment of the Ticket to Work and Self-Sufficiency 
                            Program.
Sec. 202. Effective date.
Sec. 203. Graduated implementation of Program.
Sec. 204. The Ticket to Work and Self-Sufficiency Advisory Panel.
Sec. 205. Demonstration projects and studies.
                    TITLE III--TECHNICAL AMENDMENTS

Sec. 301. Technical amendments relating to drug addicts and alcoholics.
Sec. 302. Treatment of prisoners.
Sec. 303. Revocation by members of the clergy of exemption from social 
                            security coverage.
Sec. 304. Additional technical amendment relating to cooperative 
                            research or demonstration projects under 
                            titles II and XVI.
Sec. 305. Authorization for State to permit annual wage reports.

         TITLE I--EXPANDED AVAILABILITY OF HEALTH CARE SERVICES

SEC. 101. EXPANDING STATE OPTIONS UNDER MEDICAID FOR WORKERS WITH 
              DISABILITIES.

    (a) State Option To Eliminate Income, Assets, and Resource 
Limitations for Workers With Disabilities Buying Into Medicaid.--
Section 1902(a)(10)(A)(ii) of the Social Security Act (42 U.S.C. 
1396a(a)(10)(A)(ii)) is amended--
            (1) in subclause (XIII), by striking ``or'' at the end;
            (2) in subclause (XIV), by adding ``or'' at the end; and
            (3) by adding at the end the following:
                                    ``(XV) who, but for earnings in 
                                excess of the limit established under 
                                section 1905(q)(2)(B), and subject to 
                                limitations on assets, resources, or 
                                unearned income that may be set by the 
                                State, would be considered to be 
                                receiving supplemental security income 
                                (subject, notwithstanding section 1916, 
                                to payment of premiums or other cost-
                                sharing charges (set on a sliding scale 
                                based on income that the State may 
                                determine and that may require an 
                                individual with income that exceeds 250 
                                percent of the income official poverty 
                                line (as defined by the Office of 
                                Management and Budget, and revised 
                                annually in accordance with section 
                                673(2) of the Omnibus Budget 
                                Reconciliation Act of 1981) applicable 
                                to a family of the size involved to pay 
                                an amount equal to 100 percent of the 
                                premium cost for providing medical 
                                assistance to the individual), so long 
                                as any such premiums or other cost-
                                sharing charges are the same as any 
                                premiums or other cost-sharing charges 
                                imposed for individuals described in 
                                subclause (XVI));''.
    (b) State Option To Expand Opportunities for Workers With 
Disabilities To Buy Into Medicaid.--
            (1) Eligibility.--Section 1902(a)(10)(A)(ii) of the Social 
        Security Act (42 U.S.C. 1396a(a)(10)(A)(ii)), as amended by 
        subsection (a), is amended--
                    (A) in subclause (XIV), by striking ``or'' at the 
                end;
                    (B) in subclause (XV), by adding ``or'' at the end; 
                and
                    (C) by adding at the end the following:
                                    ``(XVI) who are working individuals 
                                with disabilities described in section 
                                1905(v) (subject, notwithstanding 
                                section 1916, to payment of premiums or 
                                other cost-sharing charges (set on a 
                                sliding scale based on income) that the 
                                State may determine so long as any such 
                                premiums or other cost-sharing charges 
                                are the same as any premiums or other 
                                cost-sharing charges imposed for 
                                individuals described in subclause 
                                (XV)), but only if the State provides 
                                medical assistance to individuals 
                                described in subclause (XV);''.
            (2) Definition of working individuals with disabilities.--
        Section 1905 of the Social Security Act (42 U.S.C. 1396d) is 
        amended by adding at the end the following:
    ``(v)(1) The term `working individuals with disabilities' means 
individuals ages 16 through 64 who--
            ``(A) by reason of medical improvement, cease to be 
        eligible for benefits under section 223(d) or 1614(a)(3) at the 
        time of a regularly scheduled continuing disability review but 
        who continue to have a severe medically determinable 
        impairment; and
            ``(B) are employed.
    ``(2) An individual is considered to be `employed' if the 
individual--
            ``(A) is earning at least the applicable minimum wage 
        requirement under section 6 of the Fair Labor Standards Act (29 
        U.S.C. 206) and working at least 40 hours per month; or
            ``(B) is engaged in a work effort that meets substantial 
        and reasonable threshold criteria for hours of work, wages, or 
        other measures, as defined by the State and approved by the 
        Secretary.''.
            (3) Conforming amendment.--Section 1905(a) of the Social 
        Security Act (42 U.S.C. 1396d(a)) is amended in the matter 
        preceding paragraph (1)--
                    (A) in clause (x), by striking ``or'' at the end;
                    (B) in clause (xi), by adding ``or'' at the end; 
                and
                    (C) by inserting after clause (xi), the following:
            ``(xii) individuals described in subsection (v),''.
    (c) Prohibition Against Supplantation of State Funds; Maintenance 
of Effort Requirement; Condition for Approval of State Plan 
Amendment.--
            (1) No supplantation of state funds.--Federal funds paid to 
        a State for medical assistance provided to an individual 
        described in subclause (XV) or (XVI) of section 
        1902(a)(10)(A)(ii) of the Social Security Act (42 U.S.C. 
        1396a(a)(10)(A)(ii)) must be used to supplement but not 
        supplant the level of State funds expended as of October 1, 
        1998 for programs to enable working individuals with 
        disabilities to work.
            (2) Maintenance of effort.--With respect to a fiscal year 
        quarter, no Federal funds may be paid to a State for medical 
        assistance provided to an individual described in subclause 
        (XV) or (XVI) of section 1902(a)(10)(A)(ii) of the Social 
        Security Act (42 U.S.C. 1396a(a)(10)(A)(ii)) for such fiscal 
        year quarter if the Secretary of Health and Human Services 
        determines that the total of the State expenditures for 
        programs to enable working individuals with disabilities to 
        work for the preceding fiscal year quarter is less than the 
        total of such expenditures for the same fiscal year quarter of 
        the preceding fiscal year.
            (3) Condition for approval of state plan amendments.--No 
        State plan amendment that proposes to provide medical 
        assistance to an individual described in subclause (XV) or 
        (XVI) of section 1902(a)(10)(A)(ii) of the Social Security Act 
        (42 U.S.C. 1396a(a)(10)(A)(ii)) may be approved unless the 
        chief executive officer of the State certifies to the Secretary 
        of Health and Human Services that the plan, as so amended, will 
        satisfy the requirements of paragraphs (1) and (2) of this 
        subsection.
    (d) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply on and after October 1, 1999.
            (2) Extension of effective date for state law amendment.--
        In the case of a State plan under title XIX of the Social 
        Security Act which the Secretary of Health and Human Services 
        determines requires State legislation in order for the plan to 
        meet the additional requirements imposed by the amendments made 
        by this section, the State plan shall not be regarded as 
        failing to comply with the requirements of this section solely 
        on the basis of its failure to meet these additional 
        requirements before the first day of the first calendar quarter 
        beginning after the close of the first regular session of the 
        State legislature that begins after the date of enactment of 
        this Act. For purposes of the previous sentence, in the case of 
        a State that has a 2-year legislative session, each year of the 
        session is considered to be a separate regular session of the 
        State legislature.

SEC. 102. 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 1148, 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 1999)''.
    (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 1148 of the Social 
Security Act.

SEC. 103. GRANTS TO DEVELOP AND ESTABLISH STATE INFRASTRUCTURES TO 
              SUPPORT WORKING INDIVIDUALS WITH DISABILITIES.

    (a) Establishment.--
            (1) In general.--The Secretary of Health and Human Services 
        (in this section referred to as the ``Secretary'') shall award 
        grants described in subsection (b) to States to support the 
        design, establishment, and operation of State infrastructures 
        that provide items and services to support working individuals 
        with disabilities. A State may submit an application for a 
        grant authorized under this section at such time, in such 
        manner, and containing such information as the Secretary may 
        determine.
            (2) Definition of state.--In this section, the term 
        ``State'' means each of the 50 States, the District of 
        Columbia, Puerto Rico, Guam, the United States Virgin Islands, 
        American Samoa, and the Commonwealth of the Northern Mariana 
        Islands.
    (b) Grants for Infrastructure and Outreach.--
            (1) In general.--Out of the funds appropriated under 
        subsection (e), the Secretary shall award grants to States to--
                    (A) support the establishment, implementation, and 
                operation of the State infrastructures described in 
                subsection (a); and
                    (B) conduct outreach campaigns regarding the 
                existence of such infrastructures.
            (2) Eligibility for grants.--
                    (A) In general.--No State may receive a grant under 
                this subsection unless--
                            (i) the State has an approved amendment to 
                        the State plan under title XIX of the Social 
                        Security Act (42 U.S.C. 1396 et seq.) that--
                                    (I) provides medical assistance 
                                under such plan to individuals 
                                described in section 
                                1902(a)(10)(A)(ii)(XV) of the Social 
                                Security Act (42 U.S.C. 
                                1396a(a)(10)(A)(ii)(XV)); or
                                    (II) provides medical assistance 
                                under such plan to individuals 
                                described in subclauses (XV) and (XVI) 
                                of section 1902(a)(10)(A)(ii) of the 
                                Social Security Act (42 U.S.C. 
                                1396a(a)(10)(A)(ii)); and
                            (ii) the State demonstrates to the 
                        satisfaction of the Secretary that the State 
                        makes personal assistance services available 
                        under the State plan under title XIX of the 
                        Social Security Act (42 U.S.C. 1396 et seq.) to 
                        the extent necessary to enable individuals 
                        described in subclause (I) or (II) of clause 
                        (i) to remain employed (as determined under 
                        section 1905(v)(2) of the Social Security Act 
                        (42 U.S.C. 1396d(v)(2)).
                    (B) Definition of personal assistance services.--In 
                this paragraph, the term ``personal assistance 
                services'' means a range of services, provided by 1 or 
                more persons, designed to assist an individual with a 
                disability to perform daily activities on and off the 
                job that the individual would typically perform if the 
                individual did not have a disability. Such services 
                shall be designed to increase the individual's control 
                in life and ability to perform everyday activities on 
                or off the job.
            (3) Determination of awards.--
                    (A) In general.--Subject to subparagraph (B), the 
                Secretary shall determine a formula for awarding grants 
                to States under this section that provides special 
                consideration to States that provide medical assistance 
                under title XIX of the Social Security Act to 
                individuals described in section 
                1902(a)(10)(A)(ii)(XVI) of that Act (42 U.S.C. 
                1396a(a)(10)(A)(ii)(XVI)).
                    (B) Award limits.--
                            (i) Minimum awards.--No State that submits 
                        an approved application for funding under this 
                        section shall receive a grant for a fiscal year 
                        that is less than $500,000.
                            (ii) Maximum awards.--No State that submits 
                        an approved application for funding under this 
                        section shall receive a grant for a fiscal year 
                        that exceeds 15 percent of the total 
                        expenditures by the State (including the 
                        reimbursed Federal share of such expenditures) 
                        for medical assistance for individuals eligible 
                        under subclause (XV) or (XVI) of section 
                        1902(a)(10)(A)(ii), whichever is greater, as 
                        estimated by the State and approved by the 
                        Secretary.
    (c) Availability of Funds.--
            (1) Funds allocated to states.--Funds allocated to a State 
        under a grant made under this section for a fiscal year shall 
        remain available until expended.
            (2) Funds not allocated to states.--Funds not allocated to 
        States in the fiscal year for which they are appropriated shall 
        remain available in succeeding fiscal years for allocation by 
        the Secretary using the allocation formula established by the 
        Secretary under subsection (c)(3)(A).
    (d) Annual Report.--A State that receives a grant under this 
section shall submit an annual report to the Secretary on the use of 
funds provided under the grant. Each report shall include the 
percentage increase in the number of title II disability beneficiaries, 
as defined in section 1148(k)(2) of the Social Security Act (as amended 
by section 201) in the State, and title XVI disability beneficiaries, 
as defined in section 1148(k)(3) of the Social Security Act (as so 
amended) in the State who return to work.
    (e) Appropriation.--Out of any funds in the Treasury not otherwise 
appropriated, there is authorized to be appropriated and there is 
appropriated to make grants under this section--
            (1) for fiscal year 2000, $20,000,000;
            (2) for fiscal year 2001, $25,000,000;
            (3) for fiscal year 2002, $30,000,000;
            (4) for fiscal year 2003, $35,000,000;
            (5) for fiscal year 2004, $40,000,000; and
            (6) for fiscal years 2005 through 2010, the amount 
        appropriated for the preceding fiscal year increased by the 
        percentage increase (if any) in the Consumer Price Index for 
        All Urban Consumers (United States city average) for the 
        preceding fiscal year.
    (f) Recommendation.--Not later than October 1, 2009, the Secretary 
of Health and Human Services, in consultation with the Ticket to Work 
and Self-Sufficiency Advisory Panel established under section 202, 
shall submit a recommendation to the Committee on Commerce and the 
Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate regarding whether the grant program 
established under this section should be continued after fiscal year 
2010.

SEC. 104. DEMONSTRATION OF COVERAGE OF WORKERS WITH POTENTIALLY SEVERE 
              DISABILITIES.

    (a) State Application.--A State may apply to the Secretary of 
Health and Human Services (in this section referred to as the 
``Secretary'') for approval of a demonstration project (in this section 
referred to as a ``demonstration project'') under which up to a 
specified maximum number of individuals who are workers with a 
potentially severe disability (as defined in subsection (b)(1)) are 
provided medical assistance equal to that provided under section 
1905(a) of the Social Security Act (42 U.S.C. 1396d(a)) to individuals 
described in section 1902(a)(10)(A)(ii)(XV) of that Act (42 U.S.C. 
1396a(a)(10)(A)(ii)(XV)).
    (b) Worker With a Potentially Severe Disability Defined.--For 
purposes of this section--
            (1) In general.--The term ``worker with a potentially 
        severe disability'' means, with respect to a demonstration 
        project, an individual who--
                    (A) is at least 16, but less than 65, years of age;
                    (B) has a specific physical or mental impairment 
                that, as defined by the State under the demonstration 
                project, is reasonably expected, but for the receipt of 
                items and services described in section 1905(a) of the 
                Social Security Act, to become blind or disabled (as 
                defined under section 1614(a) of the Social Security 
                Act); and
                    (C) is employed (as defined in paragraph (2)).
            (2) Definition of employed.--An individual is considered to 
        be ``employed'' if the individual--
                    (A) is earning at least the applicable minimum wage 
                requirement under section 6 of the Fair Labor Standards 
                Act (29 U.S.C. 206) and working at least 40 hours per 
                month; or
                    (B) is engaged in a work effort that meets 
                substantial and reasonable threshold criteria for hours 
                of work, wages, or other measures, as defined under the 
                demonstration project and approved by the Secretary.
    (c) Approval of Demonstration Projects.--
            (1) In general.--Subject to paragraph (3), the Secretary 
        shall approve applications under subsection (a) that meet the 
        requirements of paragraph (2) and such additional terms and 
        conditions as the Secretary may require. The Secretary may 
        waive the requirement of section 1902(a)(1) of the Social 
        Security Act (42 U.S.C. 1396a(a)(1)) to allow for sub-State 
        demonstrations.
            (2) Terms and conditions of demonstration projects.--The 
        Secretary may not approve a demonstration project under this 
        section unless the State provides assurances satisfactory to 
        the Secretary that the following conditions are or will be met:
                    (A) Election of optional category.--The State has 
                elected to provide coverage under its plan under title 
                XIX of the Social Security Act of individuals described 
                in section 1902(a)(10)(A)(ii)(XV) of the Social 
                Security Act.
                    (B) Maintenance of state effort.--Federal funds 
                paid to a State pursuant to this section must be used 
                to supplement, but not supplant, the level of State 
                funds expended for workers with potentially severe 
                disabilities under programs in effect for such 
                individuals at the time the demonstration project is 
                approved under this section.
                    (C) Independent evaluation.--The State provides for 
                an independent evaluation of the project.
            (3) Limitations on federal funding.--
                    (A) Appropriation.--Out of any funds in the 
                Treasury not otherwise appropriated, there is 
                authorized to be appropriated and there is appropriated 
                to carry out this section--
                            (i) for fiscal year 2000, $70,000,000;
                            (ii) for fiscal year 2001, $73,000,000;
                            (iii) for fiscal year 2002, $77,000,000; 
                        and
                            (iv) for fiscal year 2003, $80,000,000.
                    (B) Limitation on payments.--In no case may--
                            (i) the aggregate amount of payment made by 
                        the Secretary to States under this section 
                        exceed $300,000,000; or
                            (ii) payment be provided by the Secretary 
                        for a fiscal year after fiscal year 2005.
                    (C) Funds allocated to states.--The Secretary shall 
                allocate funds to States based on their applications 
                and the availability of funds. Funds allocated to a 
                State under a grant made under this section for a 
                fiscal year shall remain available until expended.
                    (D) Funds not allocated to states.--Funds not 
                allocated to States in the fiscal year for which they 
                are appropriated shall remain available in succeeding 
                fiscal years for allocation by the Secretary using the 
                allocation formula established under this section.
                    (E) Payments to states.--Subject to the succeeding 
                provisions of this section, the Secretary shall pay to 
                each State with a demonstration project approved under 
                this section, from its allocation under subparagraph 
                (C), an amount for each quarter equal to the Federal 
                medical assistance percentage (as defined in section 
                1905(b) of the Social Security Act (42 U.S.C. 1395d(b)) 
                of expenditures in the quarter for medical assistance 
                provided to workers with a potentially severe 
                disability.
    (d) State Defined.--In this section, the term ``State'' has the 
meaning given such term for purposes of title XIX of the Social 
Security Act.

         TITLE II--TICKET TO WORK AND SELF-SUFFICIENCY PROGRAM

SEC. 201. ESTABLISHMENT OF THE TICKET TO WORK AND SELF-SUFFICIENCY 
              PROGRAM.

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

           ``the ticket to work and self-sufficiency program

    ``Sec. 1148. (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 1148(i).''.
                    (B) Section 222(a) of such Act (42 U.S.C. 422(a)) 
                is repealed.
                    (C) Section 222(b) of such Act (42 U.S.C. 422(b)) 
                is repealed.
                    (D) Section 225(b)(1) of such Act (42 U.S.C. 
                425(b)(1)) is amended by striking ``a program of 
                vocational rehabilitation services'' and inserting ``a 
                program consisting of the Ticket to Work and Self-
                Sufficiency Program under section 1148 or another 
                program of vocational rehabilitation services, 
                employment services, or other support services''.
            (2) Amendments to title xvi.--
                    (A) Section 1615(a) of 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 1148 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 1148(i).''.
    (c) 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 1148(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 1148(c)(1) of such Act and 
                provision for periodic opportunities for exercising 
                such elections (and revocations);
                    (D) the status of State agencies under section 
                1148(c)(2) at the time that State agencies exercise 
                elections (and revocations) under such section 
                1148(c)(1);
                    (E) the terms of agreements to be entered into with 
                program managers pursuant to section 1148(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 
                        1148(d)(3) of such Act;
                            (ii) standards which must be met by quality 
                        assurance measures referred to in paragraph (6) 
                        of section 1148(d) and methods of recruitment 
                        of employment networks utilized pursuant to 
                        paragraph (2) of section 1148(e); and
                            (iii) the format under which dispute 
                        resolution will operate under section 
                        1148(d)(7).
                    (F) the terms of agreements to be entered into with 
                employment networks pursuant to section 1148(d)(4) of 
                such Act, including (but not limited to)--
                            (i) the manner in which service areas are 
                        specified pursuant to section 1148(f)(2)(A) of 
                        such Act;
                            (ii) the general selection criteria and the 
                        specific selection criteria which are 
                        applicable to employment networks under section 
                        1148(f)(2)(B) of such Act in selecting service 
                        providers;
                            (iii) specific requirements relating to 
                        annual financial reporting by employment 
                        networks pursuant to section 1148(f)(3) of such 
                        Act; and
                            (iv) the national model to which periodic 
                        outcomes reporting by employment networks must 
                        conform under section 1148(f)(4) of such Act;
                    (G) standards which must be met by individual work 
                plans pursuant to section 1148(g) of such Act;
                    (H) standards which must be met by payment systems 
                required under section 1148(h) of such Act, including 
                (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 
                        1148(h)(1)(A);
                            (ii) the terms which must be met by an 
                        outcome payment system under section 
                        1148(h)(2);
                            (iii) the terms which must be met by an 
                        outcome-milestone payment system under section 
                        1148(h)(3);
                            (iv) any revision of the percentage 
                        specified in paragraph (2)(C) of section 
                        1148(h) of such Act or the period of time 
                        specified in paragraph (4)(B) of such section 
                        1148(h); and
                            (v) annual oversight procedures for such 
                        systems; and
                    (I) procedures for effective oversight of the 
                Program by the Commissioner of Social Security, 
                including periodic reviews and reporting requirements.
    (d) 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 1148(k)(1) of the Social Security 
Act as amended by this section) with respect to inquiries and issues 
relating to work incentives.

SEC. 202. EFFECTIVE DATE.

    Subject to section 203, the amendments made by section 201 shall 
take effect with the first month following one year after the date of 
the enactment of this Act.

SEC. 203. GRADUATED IMPLEMENTATION OF PROGRAM.

    (a) 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 section 201 (other 
than paragraphs (1)(C) and (2)(B) of section 201(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. Section 202 
shall apply with respect to paragraphs (1)(C) and (2)(B) of section 
201(b) without regard to this section.
    (b) 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.
    (c) Full Implementation.--The Commissioner shall ensure that the 
Program is fully implemented as soon as practicable on or after the 
effective date specified in section 202 but not later than six years 
after such date.
    (d) Ongoing Evaluation of Program.--
            (1) In general.--The Commissioner shall design and conduct 
        a series of evaluations to assess the cost-effectiveness of 
        activities carried out under this title and the amendments made 
        thereby, as well as the effects of this title and the 
        amendments made thereby on work outcomes for beneficiaries 
        receiving tickets to work and self-sufficiency under the 
        Program.
            (2) Methodology.--
                    (A) 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.
                    (B) 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.
            (3) Periodic evaluation reports.--Following the close of 
        the third and fifth fiscal years ending after the effective 
        date under section 202, 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.
    (e) Extent of State's Right of First Refusal in Advance of Full 
Implementation of Amendments in such State.--
            (1) In general.--In the case of any State in which the 
        amendments made by section 201 have not been fully implemented 
        pursuant to this section, the Commissioner shall determine by 
        regulation the extent to which--
                    (A) the requirement under section 222(a) of the 
                Social Security Act for prompt referrals to a State 
                agency; and
                    (B) 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.
            (2) Existing agreements.--Nothing in paragraph (1) or the 
        amendments made by section 201 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 section 202.

SEC. 204. THE TICKET TO WORK AND SELF-SUFFICIENCY ADVISORY PANEL.

    (a) 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 section referred to as the ``Panel'').
    (b) Duties of Panel.--It shall be the duty of the Panel to--
            (1) 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;
            (2) 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;
            (3) advise the Commissioner regarding the most effective 
        designs for research and demonstration projects associated with 
        the Program or conducted pursuant to section 205(a);
            (4) advise the Commissioner on the development of 
        performance measurements relating to quality assurance under 
        section 1148(d)(6) of the Social Security Act; and
            (5) furnish progress reports on the Program to the 
        President and each House of the Congress.
    (c) Membership.--
            (1) Number and appointment.--The Panel shall be composed of 
        six members as follows:
                    (A) one member appointed by the Chairman of the 
                Committee on Ways and Means of the House of 
                Representatives;
                    (B) one member appointed by the ranking minority 
                member of the Committee on Ways and Means of the House 
                of Representatives;
                    (C) one member appointed by the Chairman of the 
                Committee on Finance of the Senate;
                    (D) one member appointed by the ranking minority 
                member of the Committee on Finance of the Senate; and
                    (E) two members appointed by the President, who may 
                not be of the same political party.
            (2) Representation.--Of the members appointed under 
        paragraph (1), at least four 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--
                    (A) at least one shall represent the interests of 
                recipients of employment services, vocational 
                rehabilitation services, and other support services;
                    (B) at least one shall represent the interests of 
                providers of employment services, vocational 
                rehabilitation services, and other support services;
                    (C) at least one shall represent the interests of 
                private employers;
                    (D) at least one shall represent the interests of 
                employees; and
                    (E) 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.
            (3) Terms.--
                    (A) In general.--Each member shall be appointed for 
                a term of 4 years (or, if less, for the remaining life 
                of the Panel), except as provided in subparagraphs (B) 
                and (C). The initial members shall be appointed not 
                later than 90 days after the date of the enactment of 
                this Act.
                    (B) Terms of initial appointees.--As designated by 
                the President at the time of appointment, of the 
                members first appointed--
                            (i) three of the members appointed under 
                        paragraph (1) shall be appointed for a term of 
                        2 years; and
                            (ii) three of the members appointed under 
                        paragraph (1) shall be appointed for a term of 
                        4 years.
                    (C) Vacancies.--Any member appointed to fill a 
                vacancy occurring before the expiration of the term for 
                which the member's predecessor was appointed shall be 
                appointed only for the remainder of that term. A member 
                may serve after the expiration of that member's term 
                until a successor has taken office. A vacancy in the 
                Panel shall be filled in the manner in which the 
                original appointment was made.
            (4) Basic pay.--Members shall each be paid at a rate 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.
            (5) Travel expenses.--Each member shall receive travel 
        expenses, including per diem in lieu of subsistence, in 
        accordance with sections 5702 and 5703 of title 5, United 
        States Code.
            (6) Quorum.--Four members of the Panel shall constitute a 
        quorum but a lesser number may hold hearings.
            (7) Chairperson.--The Chairperson of the Panel shall be 
        designated by the President. The term of office of the 
        Chairperson shall be 4 years.
            (8) Meetings.--The Panel shall meet at least quarterly and 
        at other times at the call of the Chairperson or a majority of 
        its members.
    (d) Director and Staff of Panel; Experts and Consultants.--
            (1) Director.--The Panel shall have a Director who shall be 
        appointed by the 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.
            (2) Staff.--Subject to rules prescribed by the Panel, the 
        Director may appoint and fix the pay of additional personnel as 
        the Director considers appropriate.
            (3) Experts and consultants.--Subject to rules prescribed 
        by the Panel, the Director may procure temporary and 
        intermittent services under section 3109(b) of title 5, United 
        States Code.
            (4) Staff of federal agencies.--Upon request of the Panel, 
        the head of any Federal department or agency may detail, on a 
        reimbursable basis, any of the personnel of that department or 
        agency to the Panel to assist it in carrying out its duties 
        under this Act.
    (e) Powers of Panel.--
            (1) 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.
            (2) Powers of members and agents.--Any member or agent of 
        the Panel may, if authorized by the Panel, take any action 
        which the Panel is authorized to take by this section.
            (3) Mails.--The Panel may use the United States mails in 
        the same manner and under the same conditions as other 
        departments and agencies of the United States.
            (4) 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.
    (f) Reports.--
            (1) Interim reports.--The Panel shall submit to the 
        President and the Congress interim reports at least annually.
            (2) 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.
    (g) Termination.--The Panel shall terminate 30 days after the date 
of the submission of its final report under subsection (f)(2).
    (h) 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 section.

SEC. 205. DEMONSTRATION PROJECTS AND STUDIES.

    (a) 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 1148(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 2001 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.
    (b) 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.
    (c) 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.

                    TITLE III--TECHNICAL AMENDMENTS

SEC. 301. TECHNICAL AMENDMENTS RELATING TO DRUG ADDICTS AND ALCOHOLICS.

    (a) Clarification Relating to the Effective Date of the Denial of 
Social Security Disability Benefits to Drug Addicts and Alcoholics.--
Section 105(a)(5) of the Contract with America Advancement Act of 1996 
(Public Law 104-121; 110 Stat. 853) is amended--
            (1) in subparagraph (A), by striking ``by the Commissioner 
        of Social Security'' and ``by the Commissioner''; and
            (2) by adding at the end the following:
                    ``(D) For purposes of this paragraph, an 
                individual's claim, with respect to benefits under 
                title II of the Social Security Act based on 
                disability, which has been denied in whole before the 
                date of enactment of this Act, may not be considered to 
                be finally adjudicated before such date if, on or after 
                such date--
                            ``(i) there is pending a request for either 
                        administrative or judicial review with respect 
                        to such claim, or
                            ``(ii) there is pending, with respect to 
                        such claim, a readjudication by the 
                        Commissioner of Social Security pursuant to 
                        relief in a class action or implementation by 
                        the Commissioner of a court remand order.
                    ``(E) Notwithstanding the provisions of this 
                paragraph, with respect to any individual for whom the 
                Commissioner of Social Security does not perform the 
                entitlement redetermination before the date prescribed 
                in subparagraph (C), the Commissioner shall perform 
                such entitlement redetermination in lieu of a 
                continuing disability review whenever the Commissioner 
                determines that the individual's entitlement is subject 
                to redetermination based on the preceding provisions of 
                this paragraph, and the provisions of section 223(f) of 
                the Social Security Act shall not apply to such 
                redetermination.''.
    (b) Correction to Effective Date of Provisions Concerning 
Representative Payees and Treatment Referrals of Social Security 
Beneficiaries Who Are Drug Addicts and Alcoholics.--Section 
105(a)(5)(B) of the Contract with America Advancement Act of 1996 (42 
U.S.C. 405 note) is amended to read as follows:
                    ``(B) The amendments made by paragraphs (2) and (3) 
                shall take effect on July 1, 1996, with respect to any 
                individual--
                            ``(i) whose claim for benefits is finally 
                        adjudicated on or after the date of enactment 
                        of this Act; or
                            ``(ii) whose entitlement to benefits is 
                        based on an entitlement redetermination made 
                        pursuant to subparagraph (C).''.
    (c) Effective Dates.--The amendments made by this section shall 
take effect as if included in the enactment of section 105 of the 
Contract with America Advancement Act of 1996 (Public Law 104-121; 110 
Stat. 852 et seq.).

SEC. 302. TREATMENT OF PRISONERS.

    (a) Implementation of Prohibition Against Payment of Title II 
Benefits to Prisoners.--
            (1) In general.--Section 202(x)(3) of the Social Security 
        Act (42 U.S.C. 402(x)(3)) is amended--
                    (A) by inserting ``(A)'' after ``(3)''; and
                    (B) by adding at the end the following:
    ``(B)(i) The Commissioner shall enter into an agreement under this 
subparagraph with any interested State or local institution comprising 
a jail, prison, penal institution, or correctional facility, or 
comprising any other institution a purpose of which is to confine 
individuals as described in paragraph (1)(A)(ii). Under such 
agreement--
            ``(I) the institution shall provide to the Commissioner, on 
        a monthly basis and in a manner specified by the Commissioner, 
        the names, Social Security account numbers, dates of birth, 
        confinement commencement dates, and, to the extent available to 
        the institution, such other identifying information concerning 
        the individuals confined in the institution as the Commissioner 
        may require for the purpose of carrying out paragraph (1); and
            ``(II) the Commissioner shall pay to the institution, with 
        respect to information described in subclause (I) concerning 
        each individual who is confined therein as described in 
        paragraph (1)(A), who receives a benefit under this title for 
        the month preceding the first month of such confinement, and 
        whose benefit under this title is determined by the 
        Commissioner to be not payable by reason of confinement based 
        on the information provided by the institution, $400 (subject 
        to reduction under clause (ii)) if the institution furnishes 
the information to the Commissioner within 30 days after the date such 
individual's confinement in such institution begins, or $200 (subject 
to reduction under clause (ii)) if the institution furnishes the 
information after 30 days after such date but within 90 days after such 
date.
    ``(ii) The dollar amounts specified in clause (i)(II) shall be 
reduced by 50 percent if the Commissioner is also required to make a 
payment to the institution with respect to the same individual under an 
agreement entered into under section 1611(e)(1)(I).
    ``(iii) The provisions of section 552a of title 5, United States 
Code, shall not apply to any agreement entered into under clause (i) or 
to information exchanged pursuant to such agreement.
    ``(iv) There is authorized to be transferred from the Federal Old-
Age and Survivors Insurance Trust Fund and the Federal Disability 
Insurance Trust Fund, as appropriate, such sums as may be necessary to 
enable the Commissioner to make payments to institutions required by 
clause (i)(II).
    ``(v) The Commissioner is authorized to provide, on a reimbursable 
basis, information obtained pursuant to agreements entered into under 
clause (i) to any agency administering a Federal or federally assisted 
cash, food, or medical assistance program for eligibility purposes.''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to individuals whose period of confinement in an 
        institution commences on or after the first day of the fourth 
        month beginning after the month in which this Act is enacted.
    (b) Elimination of Title II Requirement That Confinement Stem From 
Crime Punishable by Imprisonment for More Than 1 Year.--
            (1) In general.--Section 202(x)(1)(A) of the Social 
        Security Act (42 U.S.C. 402(x)(1)(A)) is amended--
                    (A) in the matter preceding clause (i), by striking 
                ``during'' and inserting ``throughout'';
                    (B) in clause (i), by striking ``an offense 
                punishable by imprisonment for more than 1 year 
                (regardless of the actual sentence imposed)'' and 
                inserting ``a criminal offense''; and
                    (C) in clause (ii)(I), by striking ``an offense 
                punishable by imprisonment for more than 1 year'' and 
                inserting ``a criminal offense''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to individuals whose period of confinement in an 
        institution commences on or after the first day of the fourth 
        month beginning after the month in which this Act is enacted.
    (c) Conforming Title XVI Amendments.--
            (1) Fifty percent reduction in title xvi payment in case 
        involving comparable title ii payment.--Section 1611(e)(1)(I) 
        of the Social Security Act (42 U.S.C. 1382(e)(1)(I)) is 
        amended--
                    (A) in clause (i)(II), by inserting ``(subject to 
                reduction under clause (ii))'' after ``$400'' and after 
                ``$200'';
                    (B) by redesignating clauses (ii) and (iii) as 
                clauses (iii) and (iv), respectively; and
                    (C) by inserting after clause (i) the following:
    ``(ii) The dollar amounts specified in clause (i)(II) shall be 
reduced by 50 percent if the Commissioner is also required to make a 
payment to the institution with respect to the same individual under an 
agreement entered into under section 202(x)(3)(B).''.
            (2) Expansion of categories of institutions eligible to 
        enter into agreements with the commissioner.--Section 
        1611(e)(1)(I)(i) of the Social Security Act (42 U.S.C. 
        1382(e)(1)(I)(i)) is amended in the matter preceding subclause 
        (I) by striking ``institution'' and all that follows through 
        ``section 202(x)(1)(A),'' and inserting ``institution 
        comprising a jail, prison, penal institution, or correctional 
        facility, or with any other interested State or local 
        institution a purpose of which is to confine individuals as 
        described in section 202(x)(1)(A)(ii),''.
            (3) Effective date.--The amendments made by this subsection 
        shall take effect as if included in the enactment of section 
        203(a) of the Personal Responsibility and Work Opportunity 
        Reconciliation Act of 1996 (Public Law 104-193; 110 Stat. 
        2186). The reference to section 202(x)(1)(A)(ii) of the Social 
        Security Act in section 1611(e)(1)(I)(i) of the Social Security 
        Act as amended by paragraph (2) shall be deemed a reference to 
        such section 202(x)(1)(A)(ii) as amended by subsection 
        (b)(1)(C).
    (d) Continued Denial of Benefits to Sex Offenders Remaining 
Confined to Public Institutions Upon Completion of Prison Term.--
            (1) In general.--Section 202(x)(1)(A) of the Social 
        Security Act (42 U.S.C. 402(x)(1)(A)) is amended--
                    (A) in clause (i), by striking ``or'' at the end;
                    (B) in clause (ii)(IV), by striking the period and 
                inserting ``, or''; and
                    (C) by adding at the end the following:
            ``(iii) immediately upon completion of confinement as 
        described in clause (i) pursuant to conviction of a criminal 
        offense an element of which is sexual activity, is confined by 
        court order in an institution at public expense pursuant to a 
        finding that the individual is a sexually dangerous person or a 
        sexual predator or a similar finding.''.
            (2) Conforming amendment.--Section 202(x)(1)(B)(ii) of the 
        Social Security Act (42 U.S.C. 402(x)(1)(B)(ii)) is amended by 
        striking ``clause (ii)'' and inserting ``clauses (ii) and 
        (iii)''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply with respect to benefits for months ending after 
        the date of enactment of this Act.

SEC 303. REVOCATION BY MEMBERS OF THE CLERGY OF EXEMPTION FROM SOCIAL 
              SECURITY COVERAGE.

    (a) In General.--Notwithstanding section 1402(e)(4) of the Internal 
Revenue Code of 1986, any exemption which has been received under 
section 1402(e)(1) of such Code by a duly ordained, commissioned, or 
licensed minister of a church, a member of a religious order, or a 
Christian Science practitioner, and which is effective for the taxable 
year in which this Act is enacted, may be revoked by filing an 
application therefore (in such form and manner, and with such official, 
as may be prescribed  in regulations made under chapter 2 of such 
Code), if such application is filed no later than the due date of the 
Federal income tax return (including any extension thereof) for the 
applicant's second taxable year beginning after December 31, 1999. Any 
such revocation shall be effective (for purposes of chapter 2 of the 
Internal Revenue Code of 1986 and title II of the Social Security Act), 
as specified in the application, either with respect to the applicant's 
first taxable year beginning after December 31, 1999, or with respect 
to the applicant's second taxable year beginning after such date, and 
for all succeeding taxable years; and the applicant for any such 
revocation may not thereafter again file application for an exemption 
under such section 1402(e)(1). If the application is filed after the 
due date of the applicant's Federal income tax return for a taxable 
year and is effective with respect to that taxable year, it shall 
include or be accompanied by payment in full of an amount equal to the 
total of the taxes that would have been imposed by section 1401 of the 
Internal Revenue Code of 1986 with respect to all of the applicant's 
income derived in that taxable year which would have constituted net 
earnings from self-employment for purposes of chapter 2 of such Code 
(notwithstanding paragraph (4) or (5) of section 1402(c) of such Code) 
except for the exemption under section 1402(e)(1) of such Code.
    (b) Effective Date.--Subsection (a) shall apply with respect to 
service performed (to the extent specified in such subsection) in 
taxable years beginning after December 31, 1999, and with respect to 
monthly insurance benefits payable under title II of the Social 
Security Act on the basis of the wages and self-employment income of 
any individual for months in or after the calendar year in which such 
individual's application for revocation (as described in such 
subsection) is effective (and lump-sum death payments payable under 
such title on the basis of such wages and self-employment income in the 
case of deaths occurring in or after such calendar year).

SEC. 304. ADDITIONAL TECHNICAL AMENDMENT RELATING TO COOPERATIVE 
              RESEARCH OR DEMONSTRATION PROJECTS UNDER TITLES II AND 
              XVI.

    (a) In General.--Section 1110(a)(3) of the Social Security Act (42 
U.S.C. 1310(a)(3)) is amended by striking ``title XVI'' and inserting 
``title II or XVI''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect as if included in the enactment of the Social Security 
Independence and Program Improvements Act of 1994 (Public Law 103-296; 
108 Stat. 1464).

SEC. 305. AUTHORIZATION FOR STATE TO PERMIT ANNUAL WAGE REPORTS.

    (a) In General.--Section 1137(a)(3) of the Social Security Act (42 
U.S.C. 1320b-7(a)(3)) is amended by inserting before the semicolon the 
following: ``, and except that in the case of wage reports with respect 
to domestic service employment, a State may permit employers (as so 
defined) that make returns with respect to such employment on a 
calendar year basis pursuant to section 3510 of the Internal Revenue 
Code of 1986 to make such reports on an annual basis''.
    (b) Technical Amendments.--Section 1137(a)(3) of the Social 
Security Act (42 U.S.C. 1320b-7(a)(3)) is amended--
            (1) by striking ``(as defined in section 
        453A(a)(2)(B)(iii))''; and
            (2) by inserting ``(as defined in section 453A(a)(2)(B))'' 
        after ``employers'' .
    (c) Effective Date.--The amendments made by this section shall 
apply to wage reports required to be submitted on and after the date of 
enactment of this Act.
                                 <all>