[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1180 Engrossed in House (EH)]
1st Session
H. R. 1180
_______________________________________________________________________
AN ACT
To amend the Social Security Act to expand the availability of health
care coverage for working individuals with disabilities, to establish a
Ticket to Work and Self-Sufficiency Program in the Social Security
Administration to provide such individuals with meaningful
opportunities to work, and for other purposes.
106th CONGRESS
1st Session
H. R. 1180
_______________________________________________________________________
AN ACT
To amend the Social Security Act to expand the availability of health
care coverage for working individuals with disabilities, to establish a
Ticket to Work and Self-Sufficiency Program in the Social Security
Administration to provide such individuals with meaningful
opportunities to work, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Ticket to Work and
Work Incentives Improvement Act of 1999''.
(b) Table of Contents.--The table of contents is as follows:
Sec. 1. Short title; table of contents.
TITLE I--TICKET TO WORK AND SELF-SUFFICIENCY AND RELATED PROVISIONS
Subtitle A--Ticket to Work and Self-Sufficiency
Sec. 101. Establishment of the Ticket to Work and Self-Sufficiency
Program.
Subtitle B--Elimination of Work Disincentives
Sec. 111. Work activity standard as a basis for review of an
individual's disabled status.
Sec. 112. Expedited reinstatement of disability benefits.
Subtitle C--Work Incentives Planning, Assistance, and Outreach
Sec. 121. Work incentives outreach program.
Sec. 122. State grants for work incentives assistance to disabled
beneficiaries.
TITLE II--EXPANDED AVAILABILITY OF HEALTH CARE SERVICES
Sec. 201. Expanding State options under the medicaid program for
workers with disabilities.
Sec. 202. Extending medicare coverage for OASDI disability benefit
recipients.
Sec. 203. Grants to develop and establish State infrastructures to
support working individuals with
disabilities.
Sec. 204. Demonstration of coverage under the medicaid program of
workers with potentially severe
disabilities.
Sec. 205. Election by disabled beneficiaries to suspend medigap
insurance when covered under a group health
plan.
TITLE III--DEMONSTRATION PROJECTS AND STUDIES
Sec. 301. Extension of disability insurance program demonstration
project authority.
Sec. 302. Demonstration projects providing for reductions in disability
insurance benefits based on earnings.
Sec. 303. Studies and reports.
TITLE IV--MISCELLANEOUS AND TECHNICAL AMENDMENTS
Sec. 401. Technical amendments relating to drug addicts and alcoholics.
Sec. 402. Treatment of prisoners.
Sec. 403. Revocation by members of the clergy of exemption from social
security coverage.
Sec. 404. Additional technical amendment relating to cooperative
research or demonstration projects under
titles II and XVI.
Sec. 405. Authorization for State to permit annual wage reports.
Sec. 406. Assessment on attorneys who receive their fees via the Social
Security Administration.
Sec. 407. Prevention of fraud and abuse associated with certain
payments under the medicaid
program.Extension of authority of State
medicaid fraud control units.
Sec. 408. Extension of authority of State medicaid fraud control units.
Sec. 409. Special allowance adjustment for student loans.
TITLE I--TICKET TO WORK AND SELF-SUFFICIENCY AND RELATED PROVISIONS
Subtitle A--Ticket to Work and Self-Sufficiency
SEC. 101. ESTABLISHMENT OF THE TICKET TO WORK AND SELF-SUFFICIENCY
PROGRAM.
(a) In General.--Part A of title XI of the Social Security Act (42
U.S.C. 1301 et seq.) is amended by adding after section 1147 (as added
by section 8 of the Noncitizen Benefit Clarification and Other
Technical Amendments Act of 1998 (Public Law 105-306; 112 Stat. 2928))
the following:
``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) In general.--Each State agency administering or
supervising the administration of the State plan approved under
title I of the Rehabilitation Act of 1973 may elect to
participate in the Program as an employment network with
respect to a disabled beneficiary. If the State agency does
elect to participate in the Program, the State agency also
shall elect to be paid under the outcome payment system or the
outcome-milestone payment system in accordance with subsection
(h)(1). With respect to a disabled beneficiary that the State
agency does not elect to have participate in the Program, the
State agency shall be paid for services provided to that
beneficiary under the system for payment applicable under
section 222(d) and subsections (d) and (e) of section 1615. The
Commissioner shall provide for periodic opportunities for
exercising such elections.
``(2) Effect of participation by state agency.--
``(A) State agencies participating.--In any case in
which a State agency described in paragraph (1) elects
under that paragraph to participate in the Program, the
employment services, vocational rehabilitation
services, and other support services which, upon
assignment of tickets to work and self-sufficiency, are
provided to disabled beneficiaries by the State agency
acting as an employment network shall be governed by
plans for vocational rehabilitation services approved
under title I of the Rehabilitation Act of 1973.
``(B) State agencies administering maternal and
child health services programs.--Subparagraph (A) shall
not apply with respect to any State agency
administering a program under title V of this Act.
``(3) Agreements between state agencies and employment
networks.--State agencies and employment networks shall enter
into agreements regarding the conditions under which services
will be provided when an individual is referred by an
employment network to a State agency for services. The
Commissioner of Social Security shall establish by regulations
the timeframe within which such agreements must be entered into
and the mechanisms for dispute resolution between State
agencies and employment networks with respect to such
agreements.
``(d) Responsibilities of the Commissioner of Social Security.--
``(1) Selection and qualifications of program managers.--
The Commissioner of Social Security shall enter into agreements
with 1 or more organizations in the private or public sector
for service as a program manager to assist the Commissioner in
administering the Program. Any such program manager shall be
selected by means of a competitive bidding process, from among
organizations in the private or public sector with available
expertise and experience in the field of vocational
rehabilitation or employment services.
``(2) Tenure, renewal, and early termination.--Each
agreement entered into under paragraph (1) shall provide for
early termination upon failure to meet performance standards
which shall be specified in the agreement and which shall be
weighted to take into account any performance in prior terms.
Such performance standards shall include--
``(A) measures for ease of access by beneficiaries
to services; and
``(B) measures for determining the extent to which
failures in obtaining services for beneficiaries fall
within acceptable parameters, as determined by the
Commissioner.
``(3) Preclusion from direct participation in delivery of
services in own service area.--Agreements under paragraph (1)
shall preclude--
``(A) direct participation by a program manager in
the delivery of employment services, vocational
rehabilitation services, or other support services to
beneficiaries in the service area covered by the
program manager's agreement; and
``(B) the holding by a program manager of a
financial interest in an employment network or service
provider which provides services in a geographic area
covered under the program manager's agreement.
``(4) Selection of employment networks.--
``(A) In general.--The Commissioner shall select
and enter into agreements with employment networks for
service under the Program. Such employment networks
shall be in addition to State agencies serving as
employment networks pursuant to elections under
subsection (c).
``(B) Alternate participants.--In any State where
the Program is being implemented, the Commissioner
shall enter into an agreement with any alternate
participant that is operating under the authority of
section 222(d)(2) in the State as of the date of the
enactment of this section and chooses to serve as an
employment network under the Program.
``(5) Termination of agreements with employment networks.--
The Commissioner shall terminate agreements with employment
networks for inadequate performance, as determined by the
Commissioner.
``(6) Quality assurance.--The Commissioner shall provide
for such periodic reviews as are necessary to provide for
effective quality assurance in the provision of services by
employment networks. The Commissioner shall solicit and
consider the views of consumers and the program manager under
which the employment networks serve and shall consult with
providers of services to develop performance measurements. The
Commissioner shall ensure that the results of the periodic
reviews are made available to beneficiaries who are prospective
service recipients as they select employment networks. The
Commissioner shall ensure that the periodic surveys of
beneficiaries receiving services under the Program are designed
to measure customer service satisfaction.
``(7) Dispute resolution.--The Commissioner shall provide
for a mechanism for resolving disputes between beneficiaries
and employment networks, between program managers and
employment networks, and between program managers and providers
of services. The Commissioner shall afford a party to such a
dispute a reasonable opportunity for a full and fair review of
the matter in dispute.
``(e) Program Managers.--
``(1) In general.--A program manager shall conduct tasks
appropriate to assist the Commissioner in carrying out the
Commissioner's duties in administering the Program.
``(2) Recruitment of employment networks.--A program
manager shall recruit, and recommend for selection by the
Commissioner, employment networks for service under the
Program. The program manager shall carry out such recruitment
and provide such recommendations, and shall monitor all
employment networks serving in the Program in the geographic
area covered under the program manager's agreement, to the
extent necessary and appropriate to ensure that adequate
choices of services are made available to beneficiaries.
Employment networks may serve under the Program only pursuant
to an agreement entered into with the Commissioner under the
Program incorporating the applicable provisions of this section
and regulations thereunder, and the program manager shall
provide and maintain assurances to the Commissioner that
payment by the Commissioner to employment networks pursuant to
this section is warranted based on compliance by such
employment networks with the terms of such agreement and this
section. The program manager shall not impose numerical limits
on the number of employment networks to be recommended pursuant
to this paragraph.
``(3) Facilitation of access by beneficiaries to employment
networks.--A program manager shall facilitate access by
beneficiaries to employment networks. The program manager shall
ensure that each beneficiary is allowed changes in employment
networks without being deemed to have rejected services under
the Program. When such a change occurs, the program manager
shall reassign the ticket based on the choice of the
beneficiary. Upon the request of the employment network, the
program manager shall make a determination of the allocation of
the outcome or milestone-outcome payments based on the services
provided by each employment network. The program manager shall
establish and maintain lists of employment networks available
to beneficiaries and shall make such lists generally available
to the public. The program manager shall ensure that all
information provided to disabled beneficiaries pursuant to this
paragraph is provided in accessible formats.
``(4) Ensuring availability of adequate services.--The
program manager shall ensure that employment services,
vocational rehabilitation services, and other support services
are provided to beneficiaries throughout the geographic area
covered under the program manager's agreement, including rural
areas.
``(5) Reasonable access to services.--The program manager
shall take such measures as are necessary to ensure that
sufficient employment networks are available and that each
beneficiary receiving services under the Program has reasonable
access to employment services, vocational rehabilitation
services, and other support services. Services provided under
the Program may include case management, work incentives
planning, supported employment, career planning, career plan
development, vocational assessment, job training, placement,
follow-up services, and such other services as may be specified
by the Commissioner under the Program. The program manager
shall ensure that such services are available in each service
area.
``(f) Employment Networks.--
``(1) Qualifications for employment networks.--
``(A) In general.--Each employment network serving
under the Program shall consist of an agency or
instrumentality of a State (or a political subdivision
thereof) or a private entity, that assumes
responsibility for the coordination and delivery of
services under the Program to individuals assigning to
the employment network tickets to work and self-
sufficiency issued under subsection (b).
``(B) One-stop delivery systems.--An employment
network serving under the Program may consist of a one-
stop delivery system established under subtitle B of
title I of the Workforce Investment Act of 1998.
``(C) Compliance with selection criteria.--No
employment network may serve under the Program unless
it meets and maintains compliance with both general
selection criteria (such as professional and
educational qualifications, where applicable) and
specific selection criteria (such as substantial
expertise and experience in providing relevant
employment services and supports).
``(D) Single or associated providers allowed.--An
employment network shall consist of either a single
provider of such services or of an association of such
providers organized so as to combine their resources
into a single entity. An employment network may meet
the requirements of subsection (e)(4) by providing
services directly, or by entering into agreements with
other individuals or entities providing appropriate
employment services, vocational rehabilitation
services, or other support services.
``(2) Requirements relating to provision of services.--Each
employment network serving under the Program shall be required
under the terms of its agreement with the Commissioner to--
``(A) serve prescribed service areas; and
``(B) take such measures as are necessary to ensure
that employment services, vocational rehabilitation
services, and other support services provided under the
Program by, or under agreements entered into with, the
employment network are provided under appropriate
individual work plans meeting the requirements of
subsection (g).
``(3) Annual financial reporting.--Each employment network
shall meet financial reporting requirements as prescribed by
the Commissioner.
``(4) Periodic outcomes reporting.--Each employment network
shall prepare periodic reports, on at least an annual basis,
itemizing for the covered period specific outcomes achieved
with respect to specific services provided by the employment
network. Such reports shall conform to a national model
prescribed under this section. Each employment network shall
provide a copy of the latest report issued by the employment
network pursuant to this paragraph to each beneficiary upon
enrollment under the Program for services to be received
through such employment network. Upon issuance of each report
to each beneficiary, a copy of the report shall be maintained
in the files of the employment network. The program manager
shall ensure that copies of all such reports issued under this
paragraph are made available to the public under reasonable
terms.
``(g) Individual Work Plans.--
``(1) Requirements.--Each employment network shall--
``(A) take such measures as are necessary to ensure
that employment services, vocational rehabilitation
services, and other support services provided under the
Program by, or under agreements entered into with, the
employment network are provided under appropriate
individual work plans that meet the requirements of
subparagraph (C);
``(B) develop and implement each such individual
work plan, in partnership with each beneficiary
receiving such services, in a manner that affords such
beneficiary the opportunity to exercise informed choice
in selecting an employment goal and specific services
needed to achieve that employment goal;
``(C) ensure that each individual work plan
includes at least--
``(i) a statement of the vocational goal
developed with the beneficiary, including, as
appropriate, goals for earnings and job
advancement;
``(ii) a statement of the services and
supports that have been deemed necessary for
the beneficiary to accomplish that goal;
``(iii) a statement of any terms and
conditions related to the provision of such
services and supports; and
``(iv) a statement of understanding
regarding the beneficiary's rights under the
Program (such as the right to retrieve the
ticket to work and self-sufficiency if the
beneficiary is dissatisfied with the services
being provided by the employment network) and
remedies available to the individual, including
information on the availability of advocacy
services and assistance in resolving disputes
through the State grant program authorized
under section 1150;
``(D) provide a beneficiary the opportunity to
amend the individual work plan if a change in
circumstances necessitates a change in the plan; and
``(E) make each beneficiary's individual work plan
available to the beneficiary in, as appropriate, an
accessible format chosen by the beneficiary.
``(2) Effective upon written approval.--A beneficiary's
individual work plan shall take effect upon written approval by
the beneficiary or a representative of the beneficiary and a
representative of the employment network that, in providing
such written approval, acknowledges assignment of the
beneficiary's ticket to work and self-sufficiency.
``(h) Employment Network Payment Systems.--
``(1) Election of payment system by employment networks.--
``(A) In general.--The Program shall provide for
payment authorized by the Commissioner to employment
networks under either an outcome payment system or an
outcome-milestone payment system. Each employment
network shall elect which payment system will be
utilized by the employment network, and, for such
period of time as such election remains in effect, the
payment system so elected shall be utilized exclusively
in connection with such employment network (except as
provided in subparagraph (B)).
``(B) No change in method of payment for
beneficiaries with tickets already assigned to the
employment networks.--Any election of a payment system
by an employment network that would result in a change
in the method of payment to the employment network for
services provided to a beneficiary who is receiving
services from the employment network at the time of the
election shall not be effective with respect to payment
for services provided to that beneficiary and the
method of payment previously selected shall continue to
apply with respect to such services.
``(2) Outcome payment system.--
``(A) In general.--The outcome payment system shall
consist of a payment structure governing employment
networks electing such system under paragraph (1)(A)
which meets the requirements of this paragraph.
``(B) Payments made during outcome payment
period.--The outcome payment system shall provide for a
schedule of payments to an employment network, in
connection with each individual who is a beneficiary,
for each month, during the individual's outcome payment
period, for which benefits (described in paragraphs (3)
and (4) of subsection (k)) are not payable to such
individual because of work or earnings.
``(C) Computation of payments to employment
network.--The payment schedule of the outcome payment
system shall be designed so that--
``(i) the payment for each month during the
outcome payment period for which benefits
(described in paragraphs (3) and (4) of
subsection (k)) are not payable is equal to a
fixed percentage of the payment calculation
base for the calendar year in which such month
occurs; and
``(ii) such fixed percentage is set at a
percentage which does not exceed 40 percent.
``(3) Outcome-milestone payment system.--
``(A) In general.--The outcome-milestone payment
system shall consist of a payment structure governing
employment networks electing such system under
paragraph (1)(A) which meets the requirements of this
paragraph.
``(B) Early payments upon attainment of milestones
in advance of outcome payment periods.--The outcome-
milestone payment system shall provide for 1 or more
milestones, with respect to beneficiaries receiving
services from an employment network under the Program,
that are directed toward the goal of permanent
employment. Such milestones shall form a part of a
payment structure that provides, in addition to
payments made during outcome payment periods, payments
made prior to outcome payment periods in amounts based
on the attainment of such milestones.
``(C) Limitation on total payments to employment
network.--The payment schedule of the outcome milestone
payment system shall be designed so that the total of
the payments to the employment network with respect to
each beneficiary is less than, on a net present value
basis (using an interest rate determined by the
Commissioner that appropriately reflects the cost of
funds faced by providers), the total amount to which
payments to the employment network with respect to the
beneficiary would be limited if the employment network
were paid under the outcome payment system.
``(4) Definitions.--In this subsection:
``(A) Payment calculation base.--The term `payment
calculation base' means, for any calendar year--
``(i) in connection with a title II
disability beneficiary, the average disability
insurance benefit payable under section 223 for
all beneficiaries for months during the
preceding calendar year; and
``(ii) in connection with a title XVI
disability beneficiary (who is not concurrently
a title II disability beneficiary), the average
payment of supplemental security income
benefits based on disability payable under
title XVI (excluding State supplementation) for
months during the preceding calendar year to
all beneficiaries who have attained 18 years of
age but have not attained 65 years of age.
``(B) Outcome payment period.--The term `outcome
payment period' means, in connection with any
individual who had assigned a ticket to work and self-
sufficiency to an employment network under the Program,
a period--
``(i) beginning with the first month,
ending after the date on which such ticket was
assigned to the employment network, for which
benefits (described in paragraphs (3) and (4)
of subsection (k)) are not payable to such
individual by reason of engagement in
substantial gainful activity or by reason of
earnings from work activity; and
``(ii) ending with the 60th month
(consecutive or otherwise), ending after such
date, for which such benefits are not payable
to such individual by reason of engagement in
substantial gainful activity or by reason of
earnings from work activity.
``(5) Periodic review and alterations of prescribed
schedules.--
``(A) Percentages and periods.--The Commissioner
shall periodically review the percentage specified in
paragraph (2)(C), the total payments permissible under
paragraph (3)(C), and the period of time specified in
paragraph (4)(B) to determine whether such percentages,
such permissible payments, and such period provide an
adequate incentive for employment networks to assist
beneficiaries to enter the workforce, while providing
for appropriate economies. The Commissioner may alter
such percentage, such total permissible payments, or
such period of time to the extent that the Commissioner
determines, on the basis of the Commissioner's review
under this paragraph, that such an alteration would
better provide the incentive and economies described in
the preceding sentence.
``(B) Number and 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 Work Incentives Advisory Panel established by
section 101(f) of the Ticket to Work and Work
Incentives Improvement Act of 1999, and other reliable
sources. The Commissioner may from time to time alter
the number and amounts of milestone payments initially
established by the Commissioner pursuant to this
section to the extent that the Commissioner determines
that such an alteration would allow an adequate
incentive for employment networks to assist
beneficiaries to enter the workforce. Such alteration
shall be based on information provided to the
Commissioner by program managers, the Ticket to Work
and Work Incentives Advisory Panel established by
section 101(f) of the Ticket to Work and Work
Incentives Improvement Act of 1999, or other reliable
sources.
``(C) Report on the adequacy of incentives.--The
Commissioner shall submit to Congress not later than 36
months after the date of the enactment of the Ticket to
Work and Work Incentives Improvement Act of 1999 a
report with recommendations for a method or methods to
adjust payment rates under subparagraphs (A) and (B),
that would ensure adequate incentives for the provision
of services by employment networks of--
``(i) individuals with a need for ongoing
support and services;
``(ii) individuals with a need for high-
cost accommodations;
``(iii) individuals who earn a subminimum
wage; and
``(iv) individuals who work and receive
partial cash benefits.
The Commissioner shall consult with the Ticket to Work
and Work Incentives Advisory Panel established under
section 101(f) of the Ticket to Work and Work
Incentives Improvement Act of 1999 during the
development and evaluation of the study. The
Commissioner shall implement the necessary adjusted
payment rates prior to full implementation of the
Ticket to Work and Self-Sufficiency Program.
``(i) Suspension of Disability Reviews.--During any period for
which an individual is using, as defined by the Commissioner, a ticket
to work and self-sufficiency issued under this section, the
Commissioner (and any applicable State agency) may not 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) Payments to employment networks.--
``(A) Title ii disability beneficiaries.--There are
authorized to be transferred from the Federal Old-Age
and Survivors Insurance Trust Fund and the Federal
Disability Insurance Trust Fund each fiscal year such
sums as may be necessary to make payments to employment
networks under this section. Money paid from the Trust
Funds under this section with respect to title II
disability beneficiaries who are entitled to benefits
under section 223 or who are entitled to benefits under
section 202(d) on the basis of the wages and self-
employment income of such 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.
``(B) 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.
``(2) Administrative expenses.--The costs of administering
this section (other than payments to employment networks) shall
be paid from amounts made available for the administration of
title II and amounts made available for the administration of
title XVI, and shall be allocated among such amounts as
appropriate.
``(k) Definitions.--In this section:
``(1) Commissioner.--The term `Commissioner' means the
Commissioner of Social Security.
``(2) Disabled beneficiary.--The term `disabled
beneficiary' means a title II disability beneficiary or a title
XVI disability beneficiary.
``(3) Title ii disability beneficiary.--The term `title II
disability beneficiary' means an individual entitled to
disability insurance benefits under section 223 or to monthly
insurance benefits under section 202 based on such individual's
disability (as defined in section 223(d)). An individual is a
title II disability beneficiary for each month for which such
individual is entitled to such benefits.
``(4) Title xvi disability beneficiary.--The term `title
XVI disability beneficiary' means an individual eligible for
supplemental security income benefits under title XVI on the
basis of blindness (within the meaning of section 1614(a)(2))
or disability (within the meaning of section 1614(a)(3)). An
individual is a title XVI disability beneficiary for each month
for which such individual is eligible for such benefits.
``(5) Supplemental security income benefit.--The term
`supplemental security income benefit under title XVI' means a
cash benefit under section 1611 or 1619(a), and does not
include a State supplementary payment, administered federally
or otherwise.
``(l) Regulations.--Not later than 1 year after the date of the
enactment of the Ticket to Work and Work Incentives Improvement Act of
1999, the Commissioner shall prescribe such regulations as are
necessary to carry out the provisions of this section.''.
(b) Conforming Amendments.--
(1) Amendments to title ii.--
(A) Section 221(i) of the Social Security Act (42
U.S.C. 421(i)) is amended by adding at the end the
following:
``(5) For suspension of reviews under this subsection in the case
of an individual using a ticket to work and self-sufficiency, see
section 1148(i).''.
(B) Section 222(a) of such Act (42 U.S.C. 422(a))
is repealed.
(C) Section 222(b) of such Act (42 U.S.C. 422(b))
is repealed.
(D) Section 225(b)(1) of such Act (42 U.S.C.
425(b)(1)) is amended by striking ``a program of
vocational 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:
``(2) For suspension of continuing disability reviews and other
reviews under this title similar to reviews under section 221 in the
case of an individual using a ticket to work and self-sufficiency, see
section 1148(i).''.
(c) Effective Date.--Subject to subsection (d), the amendments made
by subsections (a) and (b) shall take effect with the first month
following 1 year after the date of the enactment of this Act.
(d) Graduated Implementation of Program.--
(1) In general.--Not later than 1 year after the date of
the enactment of this Act, the Commissioner of Social Security
shall commence implementation of the amendments made by this
section (other than paragraphs (1)(C) and (2)(B) of subsection
(b)) in graduated phases at phase-in sites selected by the
Commissioner. Such phase-in sites shall be selected so as to
ensure, prior to full implementation of the Ticket to Work and
Self-Sufficiency Program, the development and refinement of
referral processes, payment systems, computer linkages,
management information systems, and administrative processes
necessary to provide for full implementation of such
amendments. Subsection (c) shall apply with respect to
paragraphs (1)(C) and (2)(B) of subsection (b) without regard
to this subsection.
(2) Requirements.--Implementation of the Program at each
phase-in site shall be carried out on a wide enough scale to
permit a thorough evaluation of the alternative methods under
consideration, so as to ensure that the most efficacious
methods are determined and in place for full implementation of
the Program on a timely basis.
(3) Full implementation.--The Commissioner shall ensure
that ability to provide tickets and services to individuals
under the Program exists in every State as soon as practicable
on or after the effective date specified in subsection (c) but
not later than 3 years after such date.
(4) Ongoing evaluation of program.--
(A) In general.--The Commissioner shall design and
conduct a series of evaluations to assess the cost-
effectiveness of activities carried out under this
section and the amendments made thereby, as well as the
effects of this section and the amendments made thereby
on work outcomes for beneficiaries receiving tickets to
work and self-sufficiency under the Program.
(B) Consultation.--The Commissioner shall design
and carry out the series of evaluations after receiving
relevant advice from experts in the fields of
disability, vocational rehabilitation, and program
evaluation and individuals using tickets to work and
self-sufficiency under the Program and consulting with
the Ticket to Work and Work Incentives Advisory Panel
established under section 101(f), the Comptroller
General of the United States, other agencies of the
Federal Government, and private organizations with
appropriate expertise.
(C) Methodology.--
(i) Implementation.--The Commissioner, in
consultation with the Ticket to Work and Work
Incentives Advisory Panel established under
section 101(f), shall ensure that plans for
evaluations and data collection methods under
the Program are appropriately designed to
obtain detailed employment information.
(ii) Specific matters to be addressed.--
Each such evaluation shall address (but is not
limited to)--
(I) the annual cost (including net
cost) of the Program and the annual
cost (including net cost) that would
have been incurred in the absence of
the Program;
(II) the determinants of return to
work, including the characteristics of
beneficiaries in receipt of tickets
under the Program;
(III) the types of employment
services, vocational rehabilitation
services, and other support services
furnished to beneficiaries in receipt
of tickets under the Program who return
to work and to those who do not return
to work;
(IV) the duration of employment
services, vocational rehabilitation
services, and other support services
furnished to beneficiaries in receipt
of tickets under the Program who return
to work and the duration of such
services furnished to those who do not
return to work and the cost to
employment networks of furnishing such
services;
(V) the employment outcomes,
including wages, occupations, benefits,
and hours worked, of beneficiaries who
return to work after receiving tickets
under the Program and those who return
to work without receiving such tickets;
(VI) the characteristics of
individuals in possession of tickets
under the Program who are not accepted
for services and, to the extent
reasonably determinable, the reasons
for which such beneficiaries were not
accepted for services;
(VII) the characteristics of
providers whose services are provided
within an employment network under the
Program;
(VIII) the extent (if any) to which
employment networks display a greater
willingness to provide services to
beneficiaries with a range of
disabilities;
(IX) 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;
(X) measures of satisfaction among
beneficiaries in receipt of tickets
under the Program; and
(XI) reasons for (including
comments solicited from beneficiaries
regarding) their choice not to use
their tickets or their inability to
return to work despite the use of their
tickets.
(D) Periodic evaluation reports.--Following the
close of the third and fifth fiscal years ending after
the effective date under subsection (c), and prior to
the close of the seventh fiscal year ending after such
date, the Commissioner shall transmit to the Committee
on Ways and Means of the House of Representatives and
the Committee on Finance of the Senate a report
containing the Commissioner's evaluation of the
progress of activities conducted under the provisions
of this section and the amendments made thereby. Each
such report shall set forth the Commissioner's
evaluation of the extent to which the Program has been
successful and the Commissioner's conclusions on
whether or how the Program should be modified. Each
such report shall include such data, findings,
materials, and recommendations as the Commissioner may
consider appropriate.
(5) Extent of state's right of first refusal in advance of
full implementation of amendments in such state.--
(A) In general.--In the case of any State in which
the amendments made by subsection (a) have not been
fully implemented pursuant to this subsection, the
Commissioner shall determine by regulation the extent
to which--
(i) the requirement under section 222(a)
for prompt referrals to a State agency; and
(ii) the authority of the Commissioner
under section 222(d)(2) of the Social Security
Act to provide vocational rehabilitation
services in such State by agreement or contract
with other public or private agencies,
organizations, institutions, or individuals,
shall apply in such State.
(B) Existing agreements.--Nothing in subparagraph
(A) or the amendments made by subsection (a) shall be
construed to limit, impede, or otherwise affect any
agreement entered into pursuant to section 222(d)(2) of
the Social Security Act before the date of 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
3 years after the effective date provided in subsection
(c).
(e) Specific Regulations Required.--
(1) In general.--The Commissioner of Social Security shall
prescribe such regulations as are necessary to implement the
amendments made by this section.
(2) Specific matters to be included in regulations.--The
matters which shall be addressed in such regulations shall
include--
(A) the form and manner in which tickets to work
and self-sufficiency may be distributed to
beneficiaries pursuant to section 1148(b)(1) of the
Social Security Act;
(B) the format and wording of such tickets, which
shall incorporate by reference any contractual terms
governing service by employment networks under the
Program;
(C) the form and manner in which State agencies may
elect participation in the Ticket to Work and Self-
Sufficiency Program pursuant to section 1148(c)(1) of
such Act and provision for periodic opportunities for
exercising such elections;
(D) the status of State agencies under section
1148(c)(1) of such Act at the time that State agencies
exercise elections under that section;
(E) the terms of agreements to be entered into with
program managers pursuant to section 1148(d) of such
Act, including--
(i) the terms by which program managers are
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) of such Act and methods of
recruitment of employment networks utilized
pursuant to paragraph (2) of section 1148(e) of
such Act; and
(iii) the format under which dispute
resolution will operate under section
1148(d)(7) of such Act;
(F) the terms of agreements to be entered into with
employment networks pursuant to section 1148(d)(4) of
such Act, including--
(i) the manner in which service areas are
specified pursuant to section 1148(f)(2)(A) of
such Act;
(ii) the general selection criteria and the
specific selection criteria which are
applicable to employment networks under section
1148(f)(1)(C) of such Act in selecting service
providers;
(iii) specific requirements relating to
annual 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--
(i) the form and manner in which elections
by employment networks of payment systems are
to be exercised pursuant to section
1148(h)(1)(A) of such Act;
(ii) the terms which must be met by an
outcome payment system under section 1148(h)(2)
of such Act;
(iii) the terms which must be met by an
outcome-milestone payment system under section
1148(h)(3) of such Act;
(iv) any revision of the percentage
specified in paragraph (2)(C) of section
1148(h) of such Act or the period of time
specified in paragraph (4)(B) of such section
1148(h) of such Act; and
(v) annual oversight procedures for such
systems; and
(I) procedures for effective oversight of the
Program by the Commissioner of Social Security,
including periodic reviews and reporting requirements.
(f) The Ticket to Work and Work Incentives Advisory Panel.--
(1) Establishment.--There is established within the Social
Security Administration a panel to be known as the ``Ticket to
Work and Work Incentives Advisory Panel'' (in this subsection
referred to as the ``Panel'').
(2) Duties of panel.--It shall be the duty of the Panel
to--
(A) advise the President, the Congress, and the
Commissioner of Social Security on issues related to
work incentives programs, planning, and assistance for
individuals with disabilities, including work incentive
provisions under titles II, XI, XVI, XVIII, and XIX of
the Social Security Act (42 U.S.C. 401 et seq., 1301 et
seq., 1381 et seq., 1395 et seq., 1396 et seq.); and
(B) with respect to the Ticket to Work and Self-
Sufficiency Program established under section 1148 of
such Act--
(i) advise the Commissioner of Social
Security with respect to establishing phase-in
sites for such Program and fully implementing
the Program thereafter, the refinement of
access of disabled beneficiaries to employment
networks, payment systems, and management
information systems, and advise the
Commissioner whether such measures are being
taken to the extent necessary to ensure the
success of the Program;
(ii) advise the Commissioner regarding the
most effective designs for research and
demonstration projects associated with the
Program or conducted pursuant to section 302 of
this Act;
(iii) advise the Commissioner on the
development of performance measurements
relating to quality assurance under section
1148(d)(6) of the Social Security Act; and
(iv) furnish progress reports on the
Program to the Commissioner and each House of
Congress.
(3) Membership.--
(A) Number and appointment.--The Panel shall be
composed of 12 members as follows:
(i) 4 members appointed by the President,
not more than 2 of whom may be of the same
political party;
(ii) 2 members appointed by the Speaker of
the House of Representatives, in consultation
with the Chairman of the Committee on Ways and
Means of the House of Representatives;
(iii) 2 members appointed by the minority
leader of the House of Representatives, in
consultation with the ranking member of the
Committee on Ways and Means of the House of
Representatives;
(iv) 2 members appointed by the majority
leader of the Senate, in consultation with the
Chairman of the Committee on Finance of the
Senate; and
(v) 2 members appointed by the minority
leader of the Senate, in consultation with the
ranking member of the Committee on Finance of
the Senate.
(B) Representation.--Of the members appointed under
subparagraph (A), at least 8 shall have experience or
expert knowledge as a recipient, provider, employer, or
employee in the fields of, or related to, employment
services, vocational rehabilitation services, and other
support services, of whom--
(i) at least 2 shall represent the
interests of recipients of employment services,
vocational rehabilitation services, and other
support services;
(ii) at least 2 shall represent the
interests of providers of employment services,
vocational rehabilitation services, and other
support services;
(iii) at least 2 shall represent the
interests of private employers; and
(iv) at least 2 shall represent the
interests of employees.
At least \1/2\ of the members described in each clause
of subparagraph (A) shall be individuals with
disabilities, or representatives of individuals with
disabilities, with consideration to current or former
title II disability beneficiaries or title XVI
disability beneficiaries (as such terms are defined in
section 1148(k) of the Social Security Act (as added by
subsection (a)).
(C) Terms.--
(i) In general.--Each member shall be
appointed for a term of 4 years (or, if less,
for the remaining life of the Panel), except as
provided in clauses (ii) and (iii). The initial
members shall be appointed not later than 90
days after the date of the enactment of this
Act.
(ii) Terms of initial appointees.--As
designated by the President at the time of
appointment, of the members first appointed--
(I) \1/2\ of the members appointed
under subparagraph (A) shall be
appointed for a term of 2 years; and
(II) the remaining members
appointed under subparagraph (A) shall
be appointed for a term of 4 years.
(iii) Vacancies.--Any member appointed to
fill a vacancy occurring before the expiration
of the term for which the member's predecessor
was appointed shall be appointed only for the
remainder of that term. A member may serve
after the expiration of that member's term
until a successor has taken office. A vacancy
in the Panel shall be filled in the manner in
which the original appointment was made.
(D) Basic pay.--Members shall each be paid at a
rate, and in a manner, that is consistent with
guidelines established under section 7 of the Federal
Advisory Committee Act (5 U.S.C. App.).
(E) Travel expenses.--Each member shall receive
travel expenses, including per diem in lieu of
subsistence, in accordance with sections 5702 and 5703
of title 5, United States Code.
(F) Quorum.--8 members of the Panel shall
constitute a quorum but a lesser number may hold
hearings.
(G) Chairperson.--The Chairperson of the Panel
shall be designated by the President. The term of
office of the Chairperson shall be 4 years.
(H) Meetings.--The Panel shall meet at least
quarterly and at other times at the call of the
Chairperson or a majority of its members.
(4) Director and staff of panel; experts and consultants.--
(A) Director.--The Panel shall have a Director who
shall be appointed by the Panel, and paid at a rate,
and in a manner, that is consistent with guidelines
established under section 7 of the Federal Advisory
Committee Act (5 U.S.C. App.).
(B) Staff.--Subject to rules prescribed by the
Commissioner of Social Security, the Director may
appoint and fix the pay of additional personnel as the
Director considers appropriate.
(C) Experts and consultants.--Subject to rules
prescribed by the Commissioner of Social Security, the
Director may procure temporary and intermittent
services under section 3109(b) of title 5, United
States Code.
(D) Staff of federal agencies.--Upon request of the
Panel, the head of any Federal department or agency may
detail, on a reimbursable basis, any of the personnel
of that department or agency to the Panel to assist it
in carrying out its duties under this Act.
(5) Powers of panel.--
(A) Hearings and sessions.--The Panel may, for the
purpose of carrying out its duties under this
subsection, hold such hearings, sit and act at such
times and places, and take such testimony and evidence
as the Panel considers appropriate.
(B) Powers of members and agents.--Any member or
agent of the Panel may, if authorized by the Panel,
take any action which the Panel is authorized to take
by this section.
(C) Mails.--The Panel may use the United States
mails in the same manner and under the same conditions
as other departments and agencies of the United States.
(6) Reports.--
(A) Interim reports.--The Panel shall submit to the
President and the Congress interim reports at least
annually.
(B) Final report.--The Panel shall transmit a final
report to the President and the Congress not later than
eight years after the date of the enactment of this
Act. The final report shall contain a detailed
statement of the findings and conclusions of the Panel,
together with its recommendations for legislation and
administrative actions which the Panel considers
appropriate.
(7) Termination.--The Panel shall terminate 30 days after
the date of the submission of its final report under paragraph
(6)(B).
(8) Authorization of appropriations.--There are authorized
to be appropriated from the Federal Old-Age and Survivors
Insurance Trust Fund, the Federal Disability Insurance Trust
Fund, and the general fund of the Treasury, as appropriate,
such sums as are necessary to carry out this subsection.
Subtitle B--Elimination of Work Disincentives
SEC. 111. WORK ACTIVITY STANDARD AS A BASIS FOR REVIEW OF AN
INDIVIDUAL'S DISABLED STATUS.
(a) In General.--Section 221 of the Social Security Act (42 U.S.C.
421) is amended by adding at the end the following:
``(m)(1) In any case where an individual entitled to disability
insurance benefits under section 223 or to monthly insurance benefits
under section 202 based on such individual's disability (as defined in
section 223(d)) has received such benefits for at least 24 months--
``(A) no continuing disability review conducted by the
Commissioner may be scheduled for the individual solely as a
result of the individual's work activity;
``(B) no work activity engaged in by the individual may be
used as evidence that the individual is no longer disabled; and
``(C) no cessation of work activity by the individual may
give rise to a presumption that the individual is unable to
engage in work.
``(2) An individual to which paragraph (1) applies shall continue
to be subject to--
``(A) continuing disability reviews on a regularly
scheduled basis that is not triggered by work; and
``(B) termination of benefits under this title in the event
that the individual has earnings that exceed the level of
earnings established by the Commissioner to represent
substantial gainful activity.''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on January 1, 2003.
SEC. 112. EXPEDITED REINSTATEMENT OF DISABILITY BENEFITS.
(a) OASDI Benefits.--Section 223 of the Social Security Act (42
U.S.C. 423) is amended--
(1) by redesignating subsection (i) as subsection (j); and
(2) by inserting after subsection (h) the following:
``Reinstatement of Entitlement
``(i)(1)(A) Entitlement to benefits described in subparagraph
(B)(i)(I) shall be reinstated in any case where the Commissioner
determines that an individual described in subparagraph (B) has filed a
request for reinstatement meeting the requirements of paragraph (2)(A)
during the period prescribed in subparagraph (C). Reinstatement of such
entitlement shall be in accordance with the terms of this subsection.
``(B) An individual is described in this subparagraph if--
``(i) prior to the month in which the individual files a
request for reinstatement--
``(I) the individual was entitled to benefits under
this section or section 202 on the basis of disability
pursuant to an application filed therefor; and
``(II) such entitlement terminated due to the
performance of substantial gainful activity;
``(ii) the individual is under a disability and the
physical or mental impairment that is the basis for the finding
of disability is the same as (or related to) the physical or
mental impairment that was the basis for the finding of
disability that gave rise to the entitlement described in
clause (i); and
``(iii) the individual's disability renders the individual
unable to perform substantial gainful activity.
``(C)(i) Except as provided in clause (ii), the period prescribed
in this subparagraph with respect to an individual is 60 consecutive
months beginning with the month following the most recent month for
which the individual was entitled to a benefit described in
subparagraph (B)(i)(I) prior to the entitlement termination described
in subparagraph (B)(i)(II).
``(ii) In the case of an individual who fails to file a
reinstatement request within the period prescribed in clause (i), the
Commissioner may extend the period if the Commissioner determines that
the individual had good cause for the failure to so file.
``(2)(A)(i) A request for reinstatement shall be filed in such
form, and containing such information, as the Commissioner may
prescribe.
``(ii) A request for reinstatement shall include express
declarations by the individual that the individual meets the
requirements specified in clauses (ii) and (iii) of paragraph (1)(B).
``(B) A request for reinstatement filed in accordance with
subparagraph (A) may constitute an application for benefits in the case
of any individual who the Commissioner determines is not entitled to
reinstated benefits under this subsection.
``(3) In determining whether an individual meets the requirements
of paragraph (1)(B)(ii), the provisions of subsection (f) shall apply.
``(4)(A)(i) Subject to clause (ii), entitlement to benefits
reinstated under this subsection shall commence with the benefit
payable for the month in which a request for reinstatement is filed.
``(ii) An individual whose entitlement to a benefit for any month
would have been reinstated under this subsection had the individual
filed a request for reinstatement before the end of such month shall be
entitled to such benefit for such month if such request for
reinstatement is filed before the end of the twelfth month immediately
succeeding such month.
``(B)(i) Subject to clauses (ii) and (iii), the amount of the
benefit payable for any month pursuant to the reinstatement of
entitlement under this subsection shall be determined in accordance
with the provisions of this title.
``(ii) For purposes of computing the primary insurance amount of an
individual whose entitlement to benefits under this section is
reinstated under this subsection, the date of onset of the individual's
disability shall be the date of onset used in determining the
individual's most recent period of disability arising in connection
with such benefits payable on the basis of an application.
``(iii) Benefits under this section or section 202 payable for any
month pursuant to a request for reinstatement filed in accordance with
paragraph (2) shall be reduced by the amount of any provisional benefit
paid to such individual for such month under paragraph (7).
``(C) No benefit shall be payable pursuant to an entitlement
reinstated under this subsection to an individual for any month in
which the individual engages in substantial gainful activity.
``(D) The entitlement of any individual that is reinstated under
this subsection shall end with the benefits payable for the month
preceding whichever of the following months is the earliest:
``(i) The month in which the individual dies.
``(ii) The month in which the individual attains retirement
age.
``(iii) The third month following the month in which the
individual's disability ceases.
``(5) Whenever an individual's entitlement to benefits under this
section is reinstated under this subsection, entitlement to benefits
payable on the basis of such individual's wages and self-employment
income may be reinstated with respect to any person previously entitled
to such benefits on the basis of an application if the Commissioner
determines that such person satisfies all the requirements for
entitlement to such benefits except requirements related to the filing
of an application. The provisions of paragraph (4) shall apply to the
reinstated entitlement of any such person to the same extent that they
apply to the reinstated entitlement of such individual.
``(6) An individual to whom benefits are payable under this section
or section 202 pursuant to a reinstatement of entitlement under this
subsection for 24 months (whether or not consecutive) shall, with
respect to benefits so payable after such twenty-fourth month, be
deemed for purposes of paragraph (1)(B)(i)(I) and the determination, if
appropriate, of the termination month in accordance with subsection
(a)(1) of this section, or subsection (d)(1), (e)(1), or (f)(1) of
section 202, to be entitled to such benefits on the basis of an
application filed therefor.
``(7)(A) An individual described in paragraph (1)(B) who files a
request for reinstatement in accordance with the provisions of
paragraph (2)(A) shall be entitled to provisional benefits payable in
accordance with this paragraph, unless the Commissioner determines that
the individual does not meet the requirements of paragraph (1)(B)(i) or
that the individual's declaration under paragraph (2)(A)(ii) is false.
Any such determination by the Commissioner shall be final and not
subject to review under subsection (b) or (g) of section 205.
``(B) The amount of a provisional benefit for a month shall equal
the amount of the last monthly benefit payable to the individual under
this title on the basis of an application increased by an amount equal
to the amount, if any, by which such last monthly benefit would have
been increased as a result of the operation of section 215(i).
``(C)(i) Provisional benefits shall begin with the month in which a
request for reinstatement is filed in accordance with paragraph (2)(A).
``(ii) Provisional benefits shall end with the earliest of--
``(I) the month in which the Commissioner makes a
determination regarding the individual's entitlement to
reinstated benefits;
``(II) the fifth month following the month described in
clause (i);
``(III) the month in which the individual performs
substantial gainful activity; or
``(IV) the month in which the Commissioner determines that
the individual does not meet the requirements of paragraph
(1)(B)(i) or that the individual's declaration made in
accordance with paragraph (2)(A)(ii) is false.
``(D) In any case in which the Commissioner determines that an
individual is not entitled to reinstated benefits, any provisional
benefits paid to the individual under this paragraph shall not be
subject to recovery as an overpayment unless the Commissioner
determines that the individual knew or should have known that the
individual did not meet the requirements of paragraph (1)(B).''.
(b) SSI Benefits.--
(1) In general.--Section 1631 of the Social Security Act
(42 U.S.C. 1383) is amended by adding at the end the following:
``Reinstatement of Eligibility on the Basis of Blindness or Disability
``(p)(1)(A) Eligibility for benefits under this title shall be
reinstated in any case where the Commissioner determines that an
individual described in subparagraph (B) has filed a request for
reinstatement meeting the requirements of paragraph (2)(A) during the
period prescribed in subparagraph (C). Reinstatement of eligibility
shall be in accordance with the terms of this subsection.
``(B) An individual is described in this subparagraph if--
``(i) prior to the month in which the individual files a
request for reinstatement--
``(I) the individual was eligible for benefits
under this title on the basis of blindness or
disability pursuant to an application filed therefor;
and
``(II) the individual thereafter was ineligible for
such benefits due to earned income (or earned and
unearned income) for a period of 12 or more consecutive
months;
``(ii) the individual is blind or disabled and the physical
or mental impairment that is the basis for the finding of
blindness or disability is the same as (or related to) the
physical or mental impairment that was the basis for the
finding of blindness or disability that gave rise to the
eligibility described in clause (i);
``(iii) the individual's blindness or disability renders
the individual unable to perform substantial gainful activity;
and
``(iv) the individual satisfies the nonmedical requirements
for eligibility for benefits under this title.
``(C)(i) Except as provided in clause (ii), the period prescribed
in this subparagraph with respect to an individual is 60 consecutive
months beginning with the month following the most recent month for
which the individual was eligible for a benefit under this title
(including section 1619) prior to the period of ineligibility described
in subparagraph (B)(i)(II).
``(ii) In the case of an individual who fails to file a
reinstatement request within the period prescribed in clause (i), the
Commissioner may extend the period if the Commissioner determines that
the individual had good cause for the failure to so file.
``(2)(A)(i) A request for reinstatement shall be filed in such
form, and containing such information, as the Commissioner may
prescribe.
``(ii) A request for reinstatement shall include express
declarations by the individual that the individual meets the
requirements specified in clauses (ii) through (iv) of paragraph
(1)(B).
``(B) A request for reinstatement filed in accordance with
subparagraph (A) may constitute an application for benefits in the case
of any individual who the Commissioner determines is not eligible for
reinstated benefits under this subsection.
``(3) In determining whether an individual meets the requirements
of paragraph (1)(B)(ii), the provisions of section 1614(a)(4) shall
apply.
``(4)(A) Eligibility for benefits reinstated under this subsection
shall commence with the benefit payable for the month following the
month in which a request for reinstatement is filed.
``(B)(i) Subject to clause (ii), the amount of the benefit payable
for any month pursuant to the reinstatement of eligibility under this
subsection shall be determined in accordance with the provisions of
this title.
``(ii) The benefit under this title payable for any month pursuant
to a request for reinstatement filed in accordance with paragraph (2)
shall be reduced by the amount of any provisional benefit paid to such
individual for such month under paragraph (7).
``(C) Except as otherwise provided in this subsection, eligibility
for benefits under this title reinstated pursuant to a request filed
under paragraph (2) shall be subject to the same terms and conditions
as eligibility established pursuant to an application filed therefor.
``(5) Whenever an individual's eligibility for benefits under this
title is reinstated under this subsection, eligibility for such
benefits shall be reinstated with respect to the individual's spouse if
such spouse was previously an eligible spouse of the individual under
this title and the Commissioner determines that such spouse satisfies
all the requirements for eligibility for such benefits except
requirements related to the filing of an application. The provisions of
paragraph (4) shall apply to the reinstated eligibility of the spouse
to the same extent that they apply to the reinstated eligibility of
such individual.
``(6) An individual to whom benefits are payable under this title
pursuant to a reinstatement of eligibility under this subsection for
twenty-four months (whether or not consecutive) shall, with respect to
benefits so payable after such twenty-fourth month, be deemed for
purposes of paragraph (1)(B)(i)(I) to be eligible for such benefits on
the basis of an application filed therefor.
``(7)(A) An individual described in paragraph (1)(B) who files a
request for reinstatement in accordance with the provisions of
paragraph (2)(A) shall be eligible for provisional benefits payable in
accordance with this paragraph, unless the Commissioner determines that
the individual does not meet the requirements of paragraph (1)(B)(i) or
that the individual's declaration under paragraph (2)(A)(ii) is false.
Any such determination by the Commissioner shall be final and not
subject to review under paragraph (1) or (3) of subsection (c).
``(B)(i) Except as otherwise provided in clause (ii), the amount of
a provisional benefit for a month shall equal the amount of the monthly
benefit that would be payable to an eligible individual under this
title with the same kind and amount of income.
``(ii) If the individual has a spouse who was previously an
eligible spouse of the individual under this title and the Commissioner
determines that such spouse satisfies all the requirements of section
1614(b) except requirements related to the filing of an application,
the amount of a provisional benefit for a month shall equal the amount
of the monthly benefit that would be payable to an eligible individual
and eligible spouse under this title with the same kind and amount of
income.
``(C)(i) Provisional benefits shall begin with the month following
the month in which a request for reinstatement is filed in accordance
with paragraph (2)(A).
``(ii) Provisional benefits shall end with the earliest of--
``(I) the month in which the Commissioner makes a
determination regarding the individual's eligibility for
reinstated benefits;
``(II) the fifth month following the month for which
provisional benefits are first payable under clause (i); or
``(III) the month in which the Commissioner determines that
the individual does not meet the requirements of paragraph
(1)(B)(i) or that the individual's declaration made in
accordance with paragraph (2)(A)(ii) is false.
``(D) In any case in which the Commissioner determines that an
individual is not eligible for reinstated benefits, any provisional
benefits paid to the individual under this paragraph shall not be
subject to recovery as an overpayment unless the Commissioner
determines that the individual knew or should have known that the
individual did not meet the requirements of paragraph (1)(B).
``(8) For purposes of this subsection other than paragraph (7), the
term `benefits under this title' includes State supplementary payments
made pursuant to an agreement under section 1616(a) of this Act or
section 212(b) of Public Law 93-66.''.
(2) Conforming amendments.--
(A) Section 1631(j)(1) of such Act (42 U.S.C.
1383(j)(1)) is amended by striking the period and
inserting ``, or has filed a request for reinstatement
of eligibility under subsection (p)(2) and been
determined to be eligible for reinstatement.''.
(B) Section 1631(j)(2)(A)(i)(I) of such Act (42
U.S.C. 1383(j)(2)(A)(i)(I)) is amended by inserting
``(other than pursuant to a request for reinstatement
under subsection (p))'' after ``eligible''.
(c) Effective Date.--
(1) In general.--The amendments made by this section shall
take effect on the first day of the thirteenth month beginning
after the date of the enactment of this Act.
(2) Limitation.--No benefit shall be payable under title II
or XVI on the basis of a request for reinstatement filed under
section 223(i) or 1631(p) of the Social Security Act before the
effective date described in paragraph (1).
Subtitle C--Work Incentives Planning, Assistance, and Outreach
SEC. 121. WORK INCENTIVES OUTREACH PROGRAM.
Part A of title XI of the Social Security Act (42 U.S.C. 1301 et
seq.), as amended by section 101, is amended by adding after section
1148 the following:
``work incentives outreach program
``Sec. 1149. (a) Establishment.--
``(1) In general.--The Commissioner, in consultation with
the Ticket to Work and Work Incentives Advisory Panel
established under section 101(f) of the Ticket to Work and Work
Incentives Improvement Act of 1999, shall establish a
community-based work incentives planning and assistance program
for the purpose of disseminating accurate information to
disabled beneficiaries on work incentives programs and issues
related to such programs.
``(2) Grants, cooperative agreements, contracts, and
outreach.--Under the program established under this section,
the Commissioner shall--
``(A) establish a competitive program of grants,
cooperative agreements, or contracts to provide
benefits planning and assistance, including information
on the availability of protection and advocacy
services, to disabled beneficiaries, including
individuals participating in the Ticket to Work and
Self-Sufficiency Program established under section
1148, the program established under section 1619, and
other programs that are designed to encourage disabled
beneficiaries to work;
``(B) conduct directly, or through grants,
cooperative agreements, or contracts, ongoing outreach
efforts to disabled beneficiaries (and to the families
of such beneficiaries) who are potentially eligible to
participate in Federal or State work incentive programs
that are designed to assist disabled beneficiaries to
work, including--
``(i) preparing and disseminating
information explaining such programs; and
``(ii) working in cooperation with other
Federal, State, and private agencies and
nonprofit organizations that serve disabled
beneficiaries, and with agencies and
organizations that focus on vocational
rehabilitation and work-related training and
counseling;
``(C) establish a corps of trained, accessible, and
responsive work incentives specialists within the
Social Security Administration who will specialize in
disability work incentives under titles II and XVI for
the purpose of disseminating accurate information with
respect to inquiries and issues relating to work
incentives to--
``(i) disabled beneficiaries;
``(ii) benefit applicants under titles II
and XVI; and
``(iii) individuals or entities awarded
grants under subparagraphs (A) or (B); and
``(D) provide--
``(i) training for work incentives
specialists and individuals providing planning
assistance described in subparagraph (C); and
``(ii) technical assistance to
organizations and entities that are designed to
encourage disabled beneficiaries to return to
work.
``(3) Coordination with other programs.--The
responsibilities of the Commissioner established under this
section shall be coordinated with other public and private
programs that provide information and assistance regarding
rehabilitation services and independent living supports and
benefits planning for disabled beneficiaries including the
program under section 1619, the plans for achieving self-
support program (PASS), and any other Federal or State work
incentives programs that are designed to assist disabled
beneficiaries, including educational agencies that provide
information and assistance regarding rehabilitation, school-to-
work programs, transition services (as defined in, and provided
in accordance with, the Individuals with Disabilities Education
Act (20 U.S.C. 1400 et seq.)), a one-stop delivery system
established under subtitle B of title I of the Workforce
Investment Act of 1998, and other services.
``(b) Conditions.--
``(1) Selection of entities.--
``(A) Application.--An entity shall submit an
application for a grant, cooperative agreement, or
contract to provide benefits planning and assistance to
the Commissioner at such time, in such manner, and
containing such information as the Commissioner may
determine is necessary to meet the requirements of this
section.
``(B) Statewideness.--The Commissioner shall ensure
that the planning, assistance, and information
described in paragraph (2) shall be available on a
statewide basis.
``(C) Eligibility of states and private
organizations.--
``(i) In general.--The Commissioner may
award a grant, cooperative agreement, or
contract under this section to a State or a
private agency or organization (other than
Social Security Administration Field Offices
and the State agency administering the State
medicaid program under title XIX, including any
agency or entity described in clause (ii), that
the Commissioner determines is qualified to
provide the planning, assistance, and
information described in paragraph (2)).
``(ii) Agencies and entities described.--
The agencies and entities described in this
clause are the following:
``(I) Any public or private agency
or organization (including Centers for
Independent Living established under
title VII of the Rehabilitation Act of
1973, protection and advocacy
organizations, client assistance
programs established in accordance with
section 112 of the Rehabilitation Act
of 1973, and State Developmental
Disabilities Councils established in
accordance with section 124 of the
Developmental Disabilities Assistance
and Bill of Rights Act (42 U.S.C.
6024)) that the Commissioner determines
satisfies the requirements of this
section.
``(II) The State agency
administering the State program funded
under part A of title IV.
``(D) Exclusion for conflict of interest.--The
Commissioner may not award a grant, cooperative
agreement, or contract under this section to any entity
that the Commissioner determines would have a conflict
of interest if the entity were to receive a grant,
cooperative agreement, or contract under this section.
``(2) Services provided.--A recipient of a grant,
cooperative agreement, or contract to provide benefits planning
and assistance shall select individuals who will act as
planners and provide information, guidance, and planning to
disabled beneficiaries on the--
``(A) availability and interrelation of any Federal
or State work incentives programs designed to assist
disabled beneficiaries that the individual may be
eligible to participate in;
``(B) adequacy of any health benefits coverage that
may be offered by an employer of the individual and the
extent to which other health benefits coverage may be
available to the individual; and
``(C) availability of protection and advocacy
services for disabled beneficiaries and how to access
such services.
``(3) Amount of grants, cooperative agreements, or
contracts.--
``(A) Based on population of disabled
beneficiaries.--Subject to subparagraph (B), the
Commissioner shall award a grant, cooperative
agreement, or contract under this section to an entity
based on the percentage of the population of the State
where the entity is located who are disabled
beneficiaries.
``(B) Limitations.--
``(i) Per grant.--No entity shall receive a
grant, cooperative agreement, or contract under
this section for a fiscal year that is less
than $50,000 or more than $300,000.
``(ii) Total amount for all grants,
cooperative agreements, and contracts.--The
total amount of all grants, cooperative
agreements, and contracts awarded under this
section for a fiscal year may not exceed
$23,000,000.
``(4) Allocation of costs.--The costs of carrying out this
section shall be paid from amounts made available for the
administration of title II and amounts made available for the
administration of title XVI, and shall be allocated among those
amounts as appropriate.
``(c) Definitions.--In this section:
``(1) Commissioner.--The term `Commissioner' means the
Commissioner of Social Security.
``(2) Disabled beneficiary.--The term `disabled
beneficiary' has the meaning given that term in section
1148(k)(2).
``(d) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $23,000,000 for each of the
fiscal years 2000 through 2004.''.
SEC. 122. STATE GRANTS FOR WORK INCENTIVES ASSISTANCE TO DISABLED
BENEFICIARIES.
Part A of title XI of the Social Security Act (42 U.S.C. 1301 et
seq.), as amended by section 121, is amended by adding after section
1149 the following:
``state grants for work incentives assistance to disabled beneficiaries
``Sec. 1150. (a) In General.--Subject to subsection (c), the
Commissioner may make payments in each State to the protection and
advocacy system established pursuant to part C of title I of the
Developmental Disabilities Assistance and Bill of Rights Act (42 U.S.C.
6041 et seq.) for the purpose of providing services to disabled
beneficiaries.
``(b) Services Provided.--Services provided to disabled
beneficiaries pursuant to a payment made under this section may
include--
``(1) information and advice about obtaining vocational
rehabilitation and employment services; and
``(2) advocacy or other services that a disabled
beneficiary may need to secure or regain gainful employment.
``(c) Application.--In order to receive payments under this
section, a protection and advocacy system shall submit an application
to the Commissioner, at such time, in such form and manner, and
accompanied by such information and assurances as the Commissioner may
require.
``(d) Amount of Payments.--
``(1) In general.--Subject to the amount appropriated for a
fiscal year for making payments under this section, a
protection and advocacy system shall not be paid an amount that
is less than--
``(A) in the case of a protection and advocacy
system located in a State (including the District of
Columbia and Puerto Rico) other than Guam, American
Samoa, the United States Virgin Islands, and the
Commonwealth of the Northern Mariana Islands, the
greater of--
``(i) $100,000; or
``(ii) \1/3\ of 1 percent of the amount
available for payments under this section; and
``(B) in the case of a protection and advocacy
system located in Guam, American Samoa, the United
States Virgin Islands, and the Commonwealth of the
Northern Mariana Islands, $50,000.
``(2) Inflation adjustment.--For each fiscal year in which
the total amount appropriated to carry out this section exceeds
the total amount appropriated to carry out this section in the
preceding fiscal year, the Commissioner shall increase each
minimum payment under subparagraphs (A) and (B) of paragraph
(1) by a percentage equal to the percentage increase in the
total amount so appropriated to carry out this section.
``(e) Annual Report.--Each protection and advocacy system that
receives a payment under this section shall submit an annual report to
the Commissioner and the Ticket to Work and Work Incentives Advisory
Panel established under section 101(f) of the Ticket to Work and Work
Incentives Improvement Act of 1999 on the services provided to
individuals by the system.
``(f) Funding.--
``(1) Allocation of payments.--Payments under this section
shall be made from amounts made available for the
administration of title II and amounts made available for the
administration of title XVI, and shall be allocated among those
amounts as appropriate.
``(2) Carryover.--Any amounts allotted for payment to a
protection and advocacy system under this section for a fiscal
year shall remain available for payment to or on behalf of the
protection and advocacy system until the end of the succeeding
fiscal year.
``(g) Definitions.--In this section:
``(1) Commissioner.--The term `Commissioner' means the
Commissioner of Social Security.
``(2) Disabled beneficiary.--The term `disabled
beneficiary' has the meaning given that term in section
1148(k)(2).
``(3) Protection and advocacy system.--The term `protection
and advocacy system' means a protection and advocacy system
established pursuant to part C of title I of the Developmental
Disabilities Assistance and Bill of Rights Act (42 U.S.C. 6041
et seq.).
``(h) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $7,000,000 for each of the
fiscal years 2000 through 2004.''.
TITLE II--EXPANDED AVAILABILITY OF HEALTH CARE SERVICES
SEC. 201. EXPANDING STATE OPTIONS UNDER THE MEDICAID PROGRAM FOR
WORKERS WITH DISABILITIES.
(a) In General.--
(1) State option to provide opportunity for employed
individuals with a medically improved disability to buy into
medicaid.--
(A) Eligibility.--Section 1902(a)(10)(A)(ii) of the
Social Security Act (42 U.S.C. 1396a(a)(10)(A)(ii)) is
amended--
(i) in subclause (XIII), by striking ``or''
at the end;
(ii) in subclause (XIV), by adding ``or''
at the end; and
(iii) by adding at the end the following:
``(XV) who are employed individuals
with a medically improved disability
described in section 1905(v)(1) and
whose assets, resources, and earned or
unearned income (or both) do not exceed
such limitations (if any) as the State
may establish, but only if the State
provides medical assistance to
individuals described in subclause
(XIII);''.
(B) Definition of employed individuals with a
medically improved disability.--Section 1905 of the
Social Security Act (42 U.S.C. 1396d) is amended by
adding at the end the following:
``(v)(1) The term `employed individual with a medically improved
disability' means an individual who--
``(A) is at least 16, but less than 65, years of age;
``(B) is employed (as defined in paragraph (2));
``(C) ceases to be eligible for medical assistance under
section 1902(a)(10)(A)(ii)(XIII) because the individual, by
reason of medical improvement, is determined at the time of a
regularly scheduled continuing disability review to no longer
be eligible for benefits under section 223(d) or 1614(a)(3);
and
``(D) continues to have a severe medically determinable
impairment, as determined under regulations of the Secretary.
``(2) For purposes of paragraph (1), an individual is considered to
be `employed' if the individual--
``(A) is earning at least the applicable minimum wage
requirement under section 6 of the Fair Labor Standards Act (29
U.S.C. 206) and working at least 40 hours per month; or
``(B) is engaged in a work effort that meets substantial
and reasonable threshold criteria for hours of work, wages, or
other measures, as defined by the State and approved by the
Secretary.''.
(C) Conforming amendment.--Section 1905(a) of such
Act (42 U.S.C. 1396d(a)) is amended in the matter
preceding paragraph (1)--
(i) in clause (x), by striking ``or'' at
the end;
(ii) in clause (xi), by adding ``or'' at
the end; and
(iii) by inserting after clause (xi), the
following:
``(xii) employed individuals with a medically improved
disability (as defined in subsection (v)),''.
(2) State authority to impose income-related premiums and
cost-sharing.--Section 1916 of such Act (42 U.S.C. 1396o) is
amended--
(A) in subsection (a), by striking ``The State
plan'' and inserting ``Subject to subsection (g), the
State plan''; and
(B) by adding at the end the following:
``(g) With respect to individuals provided medical assistance only
under subclause (XV) of section 1902(a)(10)(A)(ii), a State may (in a
uniform manner for individuals described in either such subclause)--
``(1) require such individuals to pay premiums or other
cost-sharing charges set on a sliding scale based on income
that the State may determine; and
``(2) require payment of 100 percent of such premiums in
the case of such an individual who has income that exceeds 250
percent of the income official poverty line (referred to in
subsection (c)(1)) applicable to a family of the size
involved.''.
(3) Prohibition against supplantation of state funds and
state failure to maintain effort.--Section 1903(i) of such Act
(42 U.S.C. 1396b(i)) is amended--
(A) by striking the period at the end of paragraph
(19) and inserting ``; or''; and
(B) by inserting after such paragraph the
following:
``(20) with respect to amounts expended for medical
assistance provided to an individual described in subclause
(XV) of section 1902(a)(10)(A)(ii) for a fiscal year unless the
State demonstrates to the satisfaction of the Secretary that
the level of State funds expended for such fiscal year for
programs to enable working individuals with disabilities to
work (other than for such medical assistance) is not less than
the level expended for such programs during the most recent
State fiscal year ending before the date of the enactment of
this paragraph.''.
(b) Conforming Amendments.--
(1) Section 1903(f)(4) of the Social Security Act (42
U.S.C. 1396b(f)(4)) is amended in the matter preceding
subparagraph (A) by inserting ``1902(a)(10)(A)(ii)(XV),'' after
``1902(a)(10)(A)(ii)(X),''.
(2) Section 1903(f)(4) of such Act, as amended by paragraph
(1), is amended by inserting ``1902(a)(10)(A)(ii)(XIII),''
before ``1902(a)(10)(A)(ii)(XV)''.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section apply to medical assistance for
items and services furnished on or after October 1, 1999.
(2) Retroactivity of conforming amendment.--The amendment
made by subsection (b)(2) takes effect as if included in the
enactment of the Balanced Budget Act of 1997.
SEC. 202. EXTENDING MEDICARE COVERAGE FOR OASDI DISABILITY BENEFIT
RECIPIENTS.
(a) In General.--The next to last sentence of section 226(b) of the
Social Security Act (42 U.S.C. 426) is amended by striking ``24'' and
inserting ``96''.
(b) Effective Date.--The amendment made by subsection (a) shall be
effective on and after October 1, 2000.
(c) GAO Report.--Not later than 5 years after the date of the
enactment of this Act, the Comptroller General of the United States
shall submit a report to the Congress that--
(1) examines the effectiveness and cost of the amendment
made by subsection (a);
(2) examines the necessity and effectiveness of providing
continuation of medicare coverage under section 226(b) of the
Social Security Act to individuals whose annual income exceeds
the contribution and benefit base (as determined under section
230 of such Act);
(3) examines the viability of providing the continuation of
medicare coverage under such section 226(b) based on a sliding
scale premium for individuals whose annual income exceeds such
contribution and benefit base;
(4) examines the viability of providing the continuation of
medicare coverage under such section 226(b) based on a premium
buy-in by the beneficiary's employer in lieu of coverage under
private health insurance;
(5) examines the interrelation between the use of the
continuation of medicare coverage under such section 226(b) and
the use of private health insurance coverage by individuals
during the extended period; and
(6) recommends such legislative or administrative changes
relating to the continuation of medicare coverage for
recipients of social security disability benefits as the
Comptroller General determines are appropriate.
SEC. 203. GRANTS TO DEVELOP AND ESTABLISH STATE INFRASTRUCTURES TO
SUPPORT WORKING INDIVIDUALS WITH DISABILITIES.
(a) Establishment.--
(1) In general.--The Secretary of Health and Human Services
(in this section referred to as the ``Secretary'') shall award
grants described in subsection (b) to States to support the
design, establishment, and operation of State infrastructures
that provide items and services to support working individuals
with disabilities.
(2) Application.--In order to be eligible for an award of a
grant under this section, a State shall submit an application
to the Secretary at such time, in such manner, and containing
such information as the Secretary shall require.
(3) Definition of state.--In this section, the term
``State'' means each of the 50 States, the District of
Columbia, Puerto Rico, Guam, the United States Virgin Islands,
American Samoa, and the Commonwealth of the Northern Mariana
Islands.
(b) Grants for Infrastructure and Outreach.--
(1) In general.--Out of the funds appropriated under
subsection (e), the Secretary shall award grants to States to--
(A) support the establishment, implementation, and
operation of the State infrastructures described in
subsection (a); and
(B) conduct outreach campaigns regarding the
existence of such infrastructures.
(2) Eligibility for grants.--
(A) In general.--No State may receive a grant under
this subsection unless the State--
(i) has an approved amendment to the State
plan under title XIX of the Social Security Act
(42 U.S.C. 1396 et seq.) that provides medical
assistance under such plan to individuals
described in section 1902(a)(10)(A)(ii)(XIII)
of the Social Security Act (42 U.S.C.
1396a(a)(10)(A)(ii)(XIII)); and
(ii) demonstrates to the satisfaction of
the Secretary that the State makes personal
assistance services available under the State
plan under title XIX of the Social Security Act
(42 U.S.C. 1396 et seq.) to the extent
necessary to enable individuals described in
clause (i) to remain employed (as determined
under section 1905(v)(2) of the Social Security
Act (42 U.S.C. 1396d(v)(2))).
(B) Definition of personal assistance services.--In
this paragraph, the term ``personal assistance
services'' means a range of services, provided by 1 or
more persons, designed to assist an individual with a
disability to perform daily activities on and off the
job that the individual would typically perform if the
individual did not have a disability. Such services
shall be designed to increase the individual's control
in life and ability to perform everyday activities on
or off the job.
(3) Determination of awards.--
(A) In general.--Subject to subparagraph (B), the
Secretary shall determine a formula for awarding grants
to States under this section that provides special
consideration to States that provide medical assistance
under title XIX of the Social Security Act to
individuals described in section 1902(a)(10)(A)(ii)(XV)
of that Act (42 U.S.C. 1396a(a)(10)(A)(ii)(XV)).
(B) Award limits.--
(i) Minimum awards.--
(I) In general.--Subject to
subclause (II), no State with an
approved application under this section
shall receive a grant for a fiscal year
that is less than $500,000.
(II) Pro rata reductions.--If the
funds appropriated under subsection (e)
for a fiscal year are not sufficient to
pay each State with an application
approved under this section the minimum
amount described in subclause (I), the
Secretary shall pay each such State an
amount equal to the pro rata share of
the amount made available.
(ii) Maximum awards.--No State with an
application that has been approved under this
section shall receive a grant for a fiscal year
that exceeds 15 percent of the total
expenditures by the State (including the
reimbursed Federal share of such expenditures)
for medical assistance for individuals eligible
under subclause (XIII) or (XV) of section
1902(a)(10)(A)(ii) of the Social Security Act
(42 U.S.C. 1396a(a)(10)(A)(ii)), as estimated
by the State and approved by the Secretary.
(c) Availability of Funds.--
(1) Funds awarded to states.--Funds awarded to a State
under a grant made under this section for a fiscal year shall
remain available until expended.
(2) Funds not awarded to states.--Funds not awarded to
States in the fiscal year for which they are appropriated shall
remain available in succeeding fiscal years for awarding by the
Secretary.
(d) Annual Report.--A State that is awarded a grant under this
section shall submit an annual report to the Secretary on the use of
funds provided under the grant. Each report shall include the
percentage increase in the number of title II disability beneficiaries,
as defined in section 1148(k)(3) of the Social Security Act (as amended
by section 101(a)) in the State, and title XVI disability
beneficiaries, as defined in section 1148(k)(4) of the Social Security
Act (as so amended) in the State who return to work.
(e) Appropriation.--
(1) In general.--Out of any funds in the Treasury not
otherwise appropriated, there is appropriated to make grants
under this section--
(A) for fiscal year 2000, $20,000,000;
(B) for fiscal year 2001, $25,000,000;
(C) for fiscal year 2002, $30,000,000;
(D) for fiscal year 2003, $35,000,000;
(E) for fiscal year 2004, $40,000,000; and
(F) for each of fiscal years 2005 through 2010, the
amount appropriated for the preceding fiscal year
increased by the percentage increase (if any) in the
Consumer Price Index for All Urban Consumers (United
States city average) for the preceding fiscal year.
(2) Budget authority.--This subsection constitutes budget
authority in advance of appropriations Acts and represents the
obligation of the Federal Government to provide for the payment
of the amounts appropriated under paragraph (1).
(f) Recommendation.--Not later than October 1, 2009, the Secretary,
in consultation with the Work Incentives Advisory Panel established
under section 201(f), shall submit a recommendation to the Committee on
Commerce of the House of Representatives and the Committee on Finance
of the Senate regarding whether the grant program established under
this section should be continued after fiscal year 2010.
SEC. 204. DEMONSTRATION OF COVERAGE UNDER THE MEDICAID PROGRAM OF
WORKERS WITH POTENTIALLY SEVERE DISABILITIES.
(a) State Application.--A State may apply to the Secretary of
Health and Human Services (in this section referred to as the
``Secretary'') for approval of a demonstration project (in this section
referred to as a ``demonstration project'') under which up to a
specified maximum number of individuals who are workers with a
potentially severe disability (as defined in subsection (b)(1)) are
provided medical assistance equal to that provided under section
1905(a) of the Social Security Act (42 U.S.C. 1396d(a)) to individuals
described in section 1902(a)(10)(A)(ii)(XIII) of that Act (42 U.S.C.
1396a(a)(10)(A)(ii)(XIII)).
(b) Worker With a Potentially Severe Disability Defined.--For
purposes of this section--
(1) In general.--The term ``worker with a potentially
severe disability'' means, with respect to a demonstration
project, an individual who--
(A) is at least 16, but less than 65, years of age;
(B) has a specific physical or mental impairment
that, as defined by the State under the demonstration
project, is reasonably expected, but for the receipt of
items and services described in section 1905(a) of the
Social Security Act (42 U.S.C. 1396d(a)), to become
blind or disabled (as defined under section 1614(a) of
the Social Security Act (42 U.S.C. 1382c(a))); and
(C) is employed (as defined in paragraph (2)).
(2) Definition of employed.--An individual is considered to
be ``employed'' if the individual--
(A) is earning at least the applicable minimum wage
requirement under section 6 of the Fair Labor Standards
Act (29 U.S.C. 206) and working at least 40 hours per
month; or
(B) is engaged in a work effort that meets
substantial and reasonable threshold criteria for hours
of work, wages, or other measures, as defined under the
demonstration project and approved by the Secretary.
(c) Approval of Demonstration Projects.--
(1) In general.--Subject to paragraph (3), the Secretary
shall approve applications under subsection (a) that meet the
requirements of paragraph (2) and such additional terms and
conditions as the Secretary may require. The Secretary may
waive the requirement of section 1902(a)(1) of the Social
Security Act (42 U.S.C. 1396a(a)(1)) to allow for sub-State
demonstrations.
(2) Terms and conditions of demonstration projects.--The
Secretary may not approve a demonstration project under this
section unless the State provides assurances satisfactory to
the Secretary that the following conditions are or will be met:
(A) Election of optional category.--The State has
elected to provide coverage under its plan under title
XIX of the Social Security Act of individuals described
in section 1902(a)(10)(A)(ii)(XIII) of the Social
Security Act (42 U.S.C. 1396a(a)(10)(A)(ii)(XIII)).
(B) Maintenance of state effort.--Federal funds
paid to a State pursuant to this section must be used
to supplement, but not supplant, the level of State
funds expended for workers with potentially severe
disabilities under programs in effect for such
individuals at the time the demonstration project is
approved under this section.
(C) Independent evaluation.--The State provides for
an independent evaluation of the project.
(3) Limitations on federal funding.--
(A) Appropriation.--
(i) In general.--Out of any funds in the
Treasury not otherwise appropriated, there is
appropriated to carry out this section for the
5-fiscal-year period beginning with fiscal year
2000, $56,000,000.
(ii) Budget authority.--Clause (i)
constitutes budget authority in advance of
appropriations Acts and represents the
obligation of the Federal Government to provide
for the payment of the amounts appropriated
under clause (i).
(B) Limitation on payments.--In no case may--
(i) the aggregate amount of payments made
by the Secretary to States under this section
exceed $56,000,000; or
(ii) payments be provided by the Secretary
for a fiscal year after fiscal year 2005.
(C) Funds allocated to states.--The Secretary shall
allocate funds to States based on their applications
and the availability of funds. Funds allocated to a
State under a grant made under this section for a
fiscal year shall remain available until expended.
(D) Funds not allocated to states.--Funds not
allocated to States in the fiscal year for which they
are appropriated shall remain available in succeeding
fiscal years for allocation by the Secretary using the
allocation formula established under this section.
(E) Payments to states.--The Secretary shall pay to
each State with a demonstration project approved under
this section, from its allocation under subparagraph
(C), an amount for each quarter equal to the Federal
medical assistance percentage (as defined in section
1905(b) of the Social Security Act (42 U.S.C. 1395d(b))
of expenditures in the quarter for medical assistance
provided to workers with a potentially severe
disability.
(d) Recommendation.--Not later than October 1, 2002, the Secretary
shall submit a recommendation to the Committee on Commerce of the House
of Representatives and the Committee on Finance of the Senate regarding
whether the demonstration project established under this section should
be continued after fiscal year 2003.
(e) State Defined.--In this section, the term ``State'' has the
meaning given such term for purposes of title XIX of the Social
Security Act (42 U.S.C. 1396 et seq.).
SEC. 205. ELECTION BY DISABLED BENEFICIARIES TO SUSPEND MEDIGAP
INSURANCE WHEN COVERED UNDER A GROUP HEALTH PLAN.
(a) In General.--Section 1882(q) of the Social Security Act (42
U.S.C. 1395ss(q)) is amended--
(1) in paragraph (5)(C), by inserting ``or paragraph (6)''
after ``this paragraph''; and
(2) by adding at the end the following new paragraph:
``(6) Each medicare supplemental policy shall provide that
benefits and premiums under the policy shall be suspended at
the request of the policyholder if the policyholder is entitled
to benefits under section 226(b) and is covered under a group
health plan (as defined in section 1862(b)(1)(A)(v)). If such
suspension occurs and if the policyholder or certificate holder
loses coverage under the group health plan, such policy shall
be automatically reinstituted (effective as of the date of such
loss of coverage) under terms described in subsection
(n)(6)(A)(ii) as of the loss of such coverage if the
policyholder provides notice of loss of such coverage within 90
days after the date of such loss.''.
(b) Effective Date.--The amendments made by subsection (a) apply
with respect to requests made after the date of the enactment of this
Act.
TITLE III--DEMONSTRATION PROJECTS AND STUDIES
SEC. 301. EXTENSION OF DISABILITY INSURANCE PROGRAM DEMONSTRATION
PROJECT AUTHORITY.
(a) Extension of Authority.--Title II of the Social Security Act
(42 U.S.C. 401 et seq.) is amended by adding at the end the following:
``demonstration project authority
``Sec. 234. (a) Authority.--
``(1) In general.--The Commissioner of Social Security (in
this section referred to as the `Commissioner') shall develop
and carry out experiments and demonstration projects designed
to determine the relative advantages and disadvantages of--
``(A) various alternative methods of treating the
work activity of individuals entitled to disability
insurance benefits under section 223 or to monthly
insurance benefits under section 202 based on such
individual's disability (as defined in section 223(d)),
including such methods as a reduction in benefits based
on earnings, designed to encourage the return to work
of such individuals;
``(B) altering other limitations and conditions
applicable to such individuals (including lengthening
the trial work period (as defined in section 222(c)),
altering the 24-month waiting period for hospital
insurance benefits under section 226, altering the
manner in which the program under this title is
administered, earlier referral of such individuals for
rehabilitation, and greater use of employers and others
to develop, perform, and otherwise stimulate new forms
of rehabilitation); and
``(C) implementing sliding scale benefit offsets
using variations in--
``(i) the amount of the offset as a
proportion of earned income;
``(ii) the duration of the offset period;
and
``(iii) the method of determining the
amount of income earned by such individuals,
to the end that savings will accrue to the Trust Funds, or to
otherwise promote the objectives or facilitate the
administration of this title.
``(2) Authority for expansion of scope.--The Commissioner
may expand the scope of any such experiment or demonstration
project to include any group of applicants for benefits under
the program established under this title with impairments that
reasonably may be presumed to be disabling for purposes of such
demonstration project, and may limit any such demonstration
project to any such group of applicants, subject to the terms
of such demonstration project which shall define the extent of
any such presumption.
``(b) Requirements.--The experiments and demonstration projects
developed under subsection (a) shall be of sufficient scope and shall
be carried out on a wide enough scale to permit a thorough evaluation
of the alternative methods under consideration while giving assurance
that the results derived from the experiments and projects will obtain
generally in the operation of the disability insurance program under
this title without committing such program to the adoption of any
particular system either locally or nationally.
``(c) Authority To Waive Compliance With Benefits Requirements.--In
the case of any experiment or demonstration project conducted under
subsection (a), the Commissioner may waive compliance with the benefit
requirements of this title and the requirements of section 1148 as they
relate to the program established under this title, and the Secretary
may (upon the request of the Commissioner) waive compliance with the
benefits requirements of title XVIII, insofar as is necessary for a
thorough evaluation of the alternative methods under consideration. No
such experiment or project shall be actually placed in operation unless
at least 90 days prior thereto a written report, prepared for purposes
of notification and information only and containing a full and complete
description thereof, has been transmitted by the Commissioner to the
Committee on Ways and Means of the House of Representatives and to the
Committee on Finance of the Senate. Periodic reports on the progress of
such experiments and demonstration projects shall be submitted by the
Commissioner to such committees. When appropriate, such reports shall
include detailed recommendations for changes in administration or law,
or both, to carry out the objectives stated in subsection (a).
``(d) Reports.--
``(1) Interim reports.--On or before June 9 of each year,
the Commissioner shall submit to the Committee on Ways and
Means of the House of Representatives and to the Committee on
Finance of the Senate an annual interim report on the progress
of the experiments and demonstration projects carried out under
this subsection together with any related data and materials
that the Commissioner may consider appropriate.
``(2) Termination and final report.--The authority under
the preceding provisions of this section (including any waiver
granted pursuant to subsection (c)) shall terminate 5 years
after the date of the enactment of this Act. Not later than 90
days after the termination of any experiment or demonstration
project carried out under this section, the Commissioner shall
submit to the Committee on Ways and Means of the House of
Representatives and to the Committee on Finance of the Senate a
final report with respect to that experiment or demonstration
project.''.
(b) Conforming Amendments; Transfer of Prior Authority.--
(1) Conforming amendments.--
(A) Repeal of prior authority.--Paragraphs (1)
through (4) of subsection (a) and subsection (c) of
section 505 of the Social Security Disability
Amendments of 1980 (42 U.S.C. 1310 note) are repealed.
(B) Conforming amendment regarding funding.--
Section 201(k) of the Social Security Act (42 U.S.C.
401(k)) is amended by striking ``section 505(a) of the
Social Security Disability Amendments of 1980'' and
inserting ``section 234''.
(2) Transfer of prior authority.--With respect to any
experiment or demonstration project being conducted under
section 505(a) of the Social Security Disability Amendments of
1980 (42 U.S.C. 1310 note) as of the date of the enactment of
this Act, the authority to conduct such experiment or
demonstration project (including the terms and conditions
applicable to the experiment or demonstration project) shall be
treated as if that authority (and such terms and conditions)
had been established under section 234 of the Social Security
Act, as added by subsection (a).
SEC. 302. DEMONSTRATION PROJECTS PROVIDING FOR REDUCTIONS IN DISABILITY
INSURANCE BENEFITS BASED ON EARNINGS.
(a) Authority.--The Commissioner of Social Security shall conduct
demonstration projects for the purpose of evaluating, through the
collection of data, a program for title II disability beneficiaries (as
defined in section 1148(k)(3) of the Social Security Act) under which
benefits payable under section 223 of such Act, or under section 202 of
such Act based on the beneficiary's disability, are reduced by $1 for
each $2 of the beneficiary's earnings that is above a level to be
determined by the Commissioner. Such projects shall be conducted at a
number of localities which the Commissioner shall determine is
sufficient to adequately evaluate the appropriateness of national
implementation of such a program. Such projects shall identify
reductions in Federal expenditures that may result from the permanent
implementation of such a program.
(b) Scope and Scale and Matters To Be Determined.--
(1) In general.--The demonstration projects developed under
subsection (a) shall be of sufficient duration, shall be of
sufficient scope, and shall be carried out on a wide enough
scale to permit a thorough evaluation of the project to
determine--
(A) the effects, if any, of induced entry into the
project and reduced exit from the project;
(B) the extent, if any, to which the project being
tested is affected by whether it is in operation in a
locality within an area under the administration of the
Ticket to Work and Self-Sufficiency Program established
under section 1148 of the Social Security Act; and
(C) the savings that accrue to the Federal Old-Age
and Survivors Insurance Trust Fund, the Federal
Disability Insurance Trust Fund, and other Federal
programs under the project being tested.
The Commissioner shall take into account advice provided by the
Ticket to Work and Work Incentives Advisory Panel pursuant to
section 101(f)(2)(B)(ii) of this Act.
(2) Additional matters.--The Commissioner shall also
determine with respect to each project--
(A) the annual cost (including net cost) of the
project and the annual cost (including net cost) that
would have been incurred in the absence of the project;
(B) the determinants of return to work, including
the characteristics of the beneficiaries who
participate in the project; and
(C) the employment outcomes, including wages,
occupations, benefits, and hours worked, of
beneficiaries who return to work as a result of
participation in the project.
The Commissioner may include within the matters evaluated under
the project the merits of trial work periods and periods of
extended eligibility.
(c) Waivers.--The Commissioner may waive compliance with the
benefit provisions of title II of the Social Security Act, and the
Secretary of Health and Human Services may waive compliance with the
benefit requirements of title XVIII of such Act, insofar as is
necessary for a thorough evaluation of the alternative methods under
consideration. No such project shall be actually placed in operation
unless at least 90 days prior thereto a written report, prepared for
purposes of notification and information only and containing a full and
complete description thereof, has been transmitted by the Commissioner
to the Committee on Ways and Means of the House of Representatives and
to the Committee on Finance of the Senate. Periodic reports on the
progress of such projects shall be submitted by the Commissioner to
such committees. When appropriate, such reports shall include detailed
recommendations for changes in administration or law, or both, to carry
out the objectives stated in subsection (a).
(d) Interim Reports.--Not later than 2 years after the date of the
enactment of this Act, and annually thereafter, the Commissioner of
Social Security shall submit to Congress an interim report on the
progress of the demonstration projects carried out under this
subsection together with any related data and materials that the
Commissioner of Social Security may consider appropriate.
(e) Final Report.--The Commissioner of Social Security shall submit
to Congress a final report with respect to all demonstration projects
carried out under this section not later than 1 year after their
completion.
(f) Expenditures.--Expenditures made for demonstration projects
under this section shall be made from the Federal Disability Insurance
Trust Fund and the Federal Old-Age and Survivors Insurance Trust Fund,
as determined appropriate by the Commissioner of Social Security, and
from the Federal Hospital Insurance Trust Fund and the Federal
Supplementary Medical Insurance Trust Fund, as determined appropriate
by the Secretary of Health and Human Services, to the extent provided
in advance in appropriation Acts.
SEC. 303. STUDIES AND REPORTS.
(a) Study by General Accounting Office of Existing Disability-
Related Employment Incentives.--
(1) Study.--As soon as practicable after the date of 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.
(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 determines are appropriate.
(b) Study by General Accounting Office of Existing Coordination of
the DI and SSI Programs as They Relate to Individuals Entering or
Leaving Concurrent Entitlement.--
(1) Study.--As soon as practicable after the date of 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 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 determines are appropriate.
(c) Study by General Accounting Office of the Impact of the
Substantial Gainful Activity Limit on Return to Work.--
(1) Study.--As soon as practicable after the date of the
enactment of this Act, the Comptroller General of the United
States shall undertake a study of the substantial gainful
activity level applicable as of that date to recipients of
benefits under section 223 of the Social Security Act (42
U.S.C. 423) and under section 202 of such Act (42 U.S.C. 402)
on the basis of a recipient having a disability, and the effect
of such level as a disincentive for those recipients to return
to work. In the study, the Comptroller General also shall
address the merits of increasing the substantial gainful
activity level applicable to such recipients of benefits and
the rationale for not yearly indexing that level to inflation.
(2) Report.--Not later than 2 years after the date of the
enactment of this Act, the Comptroller General shall transmit
to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate a
written report presenting the results of the Comptroller
General's study conducted pursuant to this subsection, together
with such recommendations for legislative or administrative
changes as the Comptroller General determines are appropriate.
(d) Report on Disregards Under the DI and SSI Programs.--Not later
than 90 days after the date of the enactment of this Act, the
Commissioner of Social Security shall submit to the Committee on Ways
and Means of the House of Representatives and the Committee on Finance
of the Senate a report that--
(1) identifies all income, assets, and resource disregards
(imposed under statutory or regulatory authority) that are
applicable to individuals receiving benefits under title II or
XVI of the Social Security Act (42 U.S.C. 401 et seq., 1381 et
seq.);
(2) with respect to each such disregard--
(A) specifies the most recent statutory or
regulatory modification of the disregard; and
(B) recommends whether further statutory or
regulatory modification of the disregard would be
appropriate; and
(3) with respect to the disregard described in section
1612(b)(7) of such Act (42 U.S.C. 1382a(b)(7)) (relating to
grants, scholarships, or fellowships received for use in paying
the cost of tuition and fees at any educational (including
technical or vocational education) institution)--
(A) identifies the number of individuals receiving
benefits under title XVI of such Act (42 U.S.C. 1381 et
seq.) who have attained age 22 and have not had any
portion of any grant, scholarship, or fellowship
received for use in paying the cost of tuition and fees
at any educational (including technical or vocational
education) institution excluded from their income in
accordance with that section;
(B) recommends whether the age at which such
grants, scholarships, or fellowships are excluded from
income for purposes of determining eligibility under
title XVI of such Act should be increased to age 25;
and
(C) recommends whether such disregard should be
expanded to include any such grant, scholarship, or
fellowship received for use in paying the cost of room
and board at any such institution.
(e) Study by the General Accounting Office of Social Security
Administration's Disability Insurance Program Demonstration
Authority.--
(1) Study.--As soon as practicable after the date of the
enactment of this Act, the Comptroller General of the United
States shall undertake a study to assess the results of the
Social Security Administration's efforts to conduct disability
demonstrations authorized under prior law as well as under
section 301 of this Act.
(2) Report.--Not later than 5 years after the date of the
enactment of this Act, the Comptroller General shall transmit
to the Committee on Ways and Means of the House of
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 section, together
with a recommendation as to whether the demonstration authority
authorized under section 301 of this Act should be made
permanent.
TITLE IV--MISCELLANEOUS AND TECHNICAL AMENDMENTS
SEC. 401. TECHNICAL AMENDMENTS RELATING TO DRUG ADDICTS AND ALCOHOLICS.
(a) Clarification Relating to the Effective Date of the Denial of
Social Security Disability Benefits to Drug Addicts and Alcoholics.--
Section 105(a)(5) of the Contract with America Advancement Act of 1996
(42 U.S.C. 405 note) is amended--
(1) in subparagraph (A), by striking ``by the Commissioner
of Social Security'' and ``by the Commissioner''; and
(2) by adding at the end the following:
``(D) For purposes of this paragraph, an
individual's claim, with respect to benefits under
title II based on disability, which has been denied in
whole before the date of the enactment of this Act, may
not be considered to be finally adjudicated before such
date if, on or after such date--
``(i) there is pending a request for either
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)
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 the
enactment of this Act; or
``(ii) whose entitlement to benefits is
based upon an entitlement redetermination made
pursuant to subparagraph (C).''.
(c) Effective Dates.--The amendments made by this section shall
take effect as if included in the enactment of section 105 of the
Contract with America Advancement Act of 1996 (Public Law 104-121; 110
Stat. 852 et seq.).
SEC. 402. TREATMENT OF PRISONERS.
(a) Implementation of Prohibition Against Payment of Title II
Benefits to Prisoners.--
(1) In general.--Section 202(x)(3) of the Social Security
Act (42 U.S.C. 402(x)(3)) is amended--
(A) by inserting ``(A)'' after ``(3)''; and
(B) by adding at the end the following:
``(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
other provisions of this title; and
``(II) the Commissioner shall pay to the institution, with
respect to information described in subclause (I) concerning
each individual who is confined therein as described in
paragraph (1)(A), who receives a benefit under this title for
the month preceding the first month of such confinement, and
whose benefit under this title is determined by the
Commissioner to be not payable by reason of confinement based
on the information provided by the institution, $400 (subject
to reduction under clause (ii)) if the institution furnishes
the information to the Commissioner within 30 days after the
date such individual's confinement in such institution begins,
or $200 (subject to reduction under clause (ii)) if the
institution furnishes the information after 30 days after such
date but within 90 days after such date.
``(ii) The dollar amounts specified in clause (i)(II) shall be
reduced by 50 percent if the Commissioner is also required to make a
payment to the institution with respect to the same individual under an
agreement entered into under section 1611(e)(1)(I).
``(iii) There are authorized to be transferred from the Federal
Old-Age and Survivors Insurance Trust Fund and the Federal Disability
Insurance Trust Fund, as appropriate, such sums as may be necessary to
enable the Commissioner to make payments to institutions required by
clause (i)(II).
``(iv) The Commissioner shall maintain, and shall provide on a
reimbursable basis, information obtained pursuant to agreements entered
into under this paragraph to any agency administering a Federal or
federally-assisted cash, food, or medical assistance program for
eligibility and other administrative purposes under such program.''.
(2) Conforming amendments to the privacy act.--Section
552a(a)(8)(B) of title 5, United States Code, is amended--
(A) in clause (vi), by striking ``or'' at the end;
(B) in clause (vii), by adding ``or'' at the end;
and
(C) by adding at the end the following:
``(viii) matches performed pursuant to
section 202(x)(3) or 1611(e)(1) of the Social
Security Act (42 U.S.C. 402(x)(3),
1382(e)(1));''.
(3) Conforming amendments to title xvi.--
(A) Section 1611(e)(1)(I)(i)(I) of the Social
Security Act (42 U.S.C. 1382(e)(1)(I)(i)(I)) is amended
by striking ``; and'' and inserting ``and the other
provisions of this title; and''.
(B) Section 1611(e)(1)(I)(ii)(II) of such Act (42
U.S.C. 1382(e)(1)(I)(ii)(II)) is amended by striking
``is authorized to provide, on a reimbursable basis,''
and inserting ``shall maintain, and shall provide on a
reimbursable basis,''.
(4) Effective date.--The amendments made by this 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 which'' and inserting ``ending with or during
or beginning with or during a period of more than 30
days throughout all of which'';
(B) in clause (i), by striking ``an offense
punishable by imprisonment for more than 1 year
(regardless of the actual sentence imposed)'' and
inserting ``a criminal offense''; and
(C) in clause (ii)(I), by striking ``an offense
punishable by imprisonment for more than 1 year'' and
inserting ``a criminal offense''.
(2) Effective date.--The amendments made by this 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) 50 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 such Act (42 U.S.C. 1382(e)(1)(I)(i)) is
amended in the matter preceding subclause (I) by striking
``institution'' and all that follows through ``section
202(x)(1)(A),'' and inserting ``institution comprising a jail,
prison, penal institution, or correctional facility, or with
any other interested State or local institution a purpose of
which is to confine individuals as described in section
202(x)(1)(A)(ii),''.
(3) Elimination of overly broad exemption.--Section
1611(e)(1)(I)(iii) of such Act (as redesignated by paragraph
(1)(B)) is amended further--
(A) by striking ``(I) The provisions'' and all that
follows through ``(II)''; and
(B) by striking ``eligibility purposes'' and
inserting ``eligibility and other administrative
purposes under such program''.
(4) Effective date.--The amendments made by this 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) 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) of such Act as amended by subsection
(b)(1)(C).
(d) Continued Denial of Benefits to Sex Offenders Remaining
Confined to Public Institutions Upon Completion of Prison Term.--
(1) In general.--Section 202(x)(1)(A) of the Social
Security Act (42 U.S.C. 402(x)(1)(A)) is amended--
(A) in clause (i), by striking ``or'' at the end;
(B) in clause (ii)(IV), by striking the period and
inserting ``, or''; and
(C) by adding at the end the following new clause:
``(iii) immediately upon completion of confinement as
described in clause (i) pursuant to conviction of a criminal
offense an element of which is sexual activity, is confined by
court order in an institution at public expense pursuant to a
finding that the individual is a sexually dangerous person or a
sexual predator or a similar finding.''.
(2) Conforming amendment.--Section 202(x)(1)(B)(ii) of such
Act (42 U.S.C. 402(x)(1)(B)(ii)) is amended by striking
``clause (ii)'' and inserting ``clauses (ii) and (iii)''.
(3) Effective date.--The amendments made by this subsection
shall apply with respect to benefits for months ending after
the date of the enactment of this Act.
SEC. 403. REVOCATION BY MEMBERS OF THE CLERGY OF EXEMPTION FROM SOCIAL
SECURITY COVERAGE.
(a) In General.--Notwithstanding section 1402(e)(4) of the Internal
Revenue Code of 1986, any exemption which has been received under
section 1402(e)(1) of such Code by a duly ordained, commissioned, or
licensed minister of a church, a member of a religious order, or a
Christian Science practitioner, and which is effective for the taxable
year in which this Act is enacted, may be revoked by filing an
application therefor (in such form and manner, and with such official,
as may be prescribed by the Commissioner of Internal Revenue), if such
application is filed no later than the due date of the Federal income
tax return (including any extension thereof) for the applicant's second
taxable year beginning after December 31, 1999. Any such revocation
shall be effective (for purposes of chapter 2 of the Internal Revenue
Code of 1986 and title II of the Social Security Act), 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 paragraphs (4) and (5) of section 1402(c)) except for
the exemption under section 1402(e)(1) of such Code.
(b) Effective Date.--Subsection (a) shall apply with respect to
service performed (to the extent specified in such subsection) in
taxable years beginning after December 31, 1999, and with respect to
monthly insurance benefits payable under title II on the basis of the
wages and self-employment income of any individual for months in or
after the calendar year in which such individual's application for
revocation (as described in such subsection) is effective (and lump-sum
death payments payable under such title on the basis of such wages and
self-employment income in the case of deaths occurring in or after such
calendar year).
SEC. 404. ADDITIONAL TECHNICAL AMENDMENT RELATING TO COOPERATIVE
RESEARCH OR DEMONSTRATION PROJECTS UNDER TITLES II AND
XVI.
(a) In General.--Section 1110(a)(3) of the Social Security Act (42
U.S.C. 1310(a)(3)) is amended by striking ``title XVI'' and inserting
``title II or XVI''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect as if included in the enactment of the Social Security
Independence and Program Improvements Act of 1994 (Public Law 103-296;
108 Stat. 1464).
SEC. 405. AUTHORIZATION FOR STATE TO PERMIT ANNUAL WAGE REPORTS.
(a) In General.--Section 1137(a)(3) of the Social Security Act (42
U.S.C. 1320b-7(a)(3)) is amended by inserting before the semicolon the
following: ``, and except that in the case of wage reports with respect
to domestic service employment, a State may permit employers (as so
defined) that make returns with respect to such employment on a
calendar year basis pursuant to section 3510 of the Internal Revenue
Code of 1986 to make such reports on an annual basis''.
(b) Technical Amendments.--Section 1137(a)(3) of the Social
Security Act (42 U.S.C. 1320b-7(a)(3)) is amended--
(1) by striking ``(as defined in section
453A(a)(2)(B)(iii))''; and
(2) by inserting ``(as defined in section 453A(a)(2)(B))''
after ``employers'' .
(c) Effective Date.--The amendments made by this section shall
apply to wage reports required to be submitted on and after the date of
the enactment of this Act.
SEC. 406. ASSESSMENT ON ATTORNEYS WHO RECEIVE THEIR FEES VIA THE SOCIAL
SECURITY ADMINISTRATION.
(a) In General.--Section 206 of the Social Security Act (42 U.S.C.
606) is amended by adding at the end the following:
``(d) Assessment on Attorneys.--
``(1) In general.--Whenever a fee for services is required
to be certified for payment to an attorney from a claimant's
past-due benefits pursuant to subsection (a)(4)(A) or
(b)(1)(A), the Commissioner shall impose on the attorney an
assessment calculated in accordance with paragraph (2).
``(2) Amount.--
``(A) The amount of an assessment under paragraph
(1) shall be equal to the product obtained by
multiplying the amount of the representative's fee that
would be required to be so certified by subsection
(a)(4)(A) or (b)(1)(A) before the application of this
subsection, by the percentage specified in subparagraph
(B).
``(B) The percentage specified in this subparagraph
is--
``(i) for calendar years before 2001, 6.3
percent, and
``(ii) for calendar years after 2000, 6.3
percent or such different percentage rate as
the Commissioner determines is necessary in
order to achieve full recovery of the costs of
certifying fees to attorneys from the past-due
benefits of claimants.
``(3) Collection.--The Commissioner may collect the
assessment imposed on an attorney under paragraph (1) by offset
from the amount of the fee otherwise required by subsection
(a)(4)(A) or (b)(1)(A) to be certified for payment to the
attorney from a claimant's past-due benefits.
``(4) Prohibition on claimant reimbursement.--An attorney
subject to an assessment under paragraph (1) may not, directly
or indirectly, request or otherwise obtain reimbursement for
such assessment from the claimant whose claim gave rise to the
assessment.
``(5) Disposition of assessments.--Assessments on attorneys
collected under this subsection shall be credited to the
Federal Old-Age and Survivors Insurance Trust Fund and the
Federal Disability Insurance Trust Fund, as appropriate.
``(6) Authorization of appropriations.--The assessments
authorized under this section shall be collected and available
for obligation only to the extent and in the amount provided in
advance in appropriations Acts. Amounts so appropriated are
authorized to remain available until expended, for
administrative expenses in carrying out title II of the Social
Security Act and related laws.
(b) Conforming Amendments.--
(1) Section 206(a)(4)(A) of such Act (42 U.S.C.
606(a)(4)(A)) is amended by inserting ``and subsection (d)''
after ``subparagraph (B)''.
(2) Section 206(b)(1)(A) of such Act (42 U.S.C.
606(b)(1)(A)) is amended by inserting ``, but subject to
subsection (d) of this section'' after ``section 205(i)''.
(c) Effective Date.--The amendments made by this section shall
apply in the case of any attorney with respect to whom a fee for
services is required to be certified for payment from a claimant's
past-due benefits pursuant to subsection (a)(4)(A) or (b)(4)(A) of
section 206 of the Social Security Act after--
(1) December 31, 1999, or
(2) the last day of the first month beginning after the
month in which this Act is enacted.
SEC. 407. PREVENTION OF FRAUD AND ABUSE ASSOCIATED WITH CERTAIN
PAYMENTS UNDER THE MEDICAID PROGRAM.
(a) Requirements for Payments.--Section 1903(i) of the Social
Security Act (42 U.S.C. 1396b(i)) (as amended by section 201(a)(3)(B))
is amended further--
(1) in paragraph (20), by striking the period at the end
and inserting ``; or''; and
(2) by inserting immediately after paragraph (20) the
following:
``(21) with respect to any amount expended for an item or
service provided under the plan, or for any administrative
expense incurred to carry out the plan, which is provided or
incurred by, or on behalf of, a State or local educational
agency or school district, unless payment for the item,
service, or administrative expense is made in accordance with a
methodology approved in advance by the Secretary under which--
``(A) in the case of payment for--
``(i) a group of individual items,
services, and administrative expenses, the
methodology--
``(I) provides for an itemization
to the Secretary that assures
accountability of the cost of the
grouped items, services, and
administrative expenses and includes
payment rates and the methodologies
underlying the establishment of such
rates;
``(II) has an actuarially sound
basis for determining the payment rates
and the methodologies; and
``(III) reconciles payments for the
grouped items, services, and
administrative expenses with items and
services provided and administrative
expenses incurred under this title; or
``(ii) an individual item, service, or
administrative expense, the amount of payment
for the item, service, or administrative
expense does not exceed the amount that would
be paid for the item, service, or
administrative expense if the item, service, or
administrative expense were incurred by an
entity other than a State or local educational
agency or school district, unless the State can
demonstrate to the satisfaction of the
Secretary a higher amount for such item,
service, or administrative expense; and
``(B) in the case of a transportation service for
an individual under age 21 who is eligible for medical
assistance under this title (whether or not the child
has an individualized education program established
pursuant to part B of the Individuals with Disabilities
Education Act)--
``(i) a medical need for transportation is
noted in such an individualized education
program (if any) for the individual, including
such an individual residing in a geographic
area within which school bus transportation is
otherwise not provided;
``(ii) in the case of a child with special
medical needs, the vehicle used to furnish such
transportation service is specially equipped or
staffed to accommodate individuals with special
medical needs; and
``(iii) payment for such service only--
``(I) is made with respect to costs
directly attributable to the costs
associated with transporting such
individuals whose medical needs require
transport in such a vehicle; and
``(II) reflects the proportion of
transportation costs equal to the
proportion of the school day spent by
such individuals in activities relating
to the receipt of covered services
under this title or such other
proportion based on an allocation
method that the Secretary finds
reasonable in light of the benefit to
the program under this title and
consistent with the cost principles
contained in OMB Circular A-87; or
``(22) with respect to any amount expended for an item or
service under the plan or for any administrative expense to
carry out the plan provided by or on behalf of a State or local
agency (including a State or local educational agency or school
district) that enters into a contract or other arrangement with
a person or entity for, or in connection with, the collection
or submission of claims for such expenditures, unless,
notwithstanding section 1902(a)(32), the agency--
``(A) uses a competitive bidding process or
otherwise to contract with such person or entity at a
reasonable rate commensurate with the services
performed by the person or entity; and
``(B) requires that any fees (including any
administrative fees) to be paid to the person or entity
for the collection or submission of such claims are
identified as a non-contingent, specified dollar amount
in the contract.''; and
(3) in the third sentence, by striking ``(17), and (18)''
and inserting ``(17), (18), (19), and (21)''.
(b) Provision of Items and Services Through Medicaid Managed Care
Organizations.--
(1) Contractual requirement.--Section 1903(m)(2)(A) of the
Social Security Act (42 U.S.C. 1396b(m)(2)(A)) is amended by
redesignating clause (xi) (as added by section 4701(c)(3) of
the Balanced Budget Act of 1997) as clause (xiii), by striking
``and'' at the end of clause (xi), and by inserting after
clause (xi) the following:
``(xii) such contract provides that with respect to payment
for, and coverage of, such services, the contract requires
coordination between the State or local educational agency or
school district and the medicaid managed care organization to
prevent duplication of services and duplication of payments
under this title for such services.''
(2) Prohibition on duplicative payments.--
(A) In general.--Section 1903(i) of the Social
Security Act (42 U.S.C 1396b(i)), as amended by
subsection (a), is amended--
(i) in paragraph (22), by striking the
period and inserting ``; or''; and
(ii) by adding at the end the following:
``(23) with respect to any amount expended under
the plan for an item, service, or administrative
expense for which payment is or may be made directly to
a person or entity (including a State or local
educational agency or school district) under the State
plan if payment for such item, service, or
administrative expense was included in the
determination of a prepaid capitation or other risk-
based rate of payment to an entity under a contract
pursuant to section 1903(m).''.
(B) Conforming amendment.--The third sentence of
section 1903(i) of such Act (42 U.S.C. 1396b(i)), as
amended by subsection (a)(3), is amended by striking
``and (21)'' and inserting ``(21), and (23)''.
(c) Allowable Share of FFP With Respect to Payment for Services
Furnished in School Setting.--Section 1903(w)(6) of the Social Security
Act (42 U.S.C. 1396b(w)(6)) is amended--
(1) in subparagraph (A), by inserting ``subject to
subparagraph (C),'' after ``subsection,''; and
(2) by adding at the end the following:
``(C) In the case of any Federal financial participation amount
determined under subsection (a) with respect to any expenditure for an
item or service under the plan, or for any administrative expense to
carry out the plan, that is furnished by a State or local educational
agency or school district, the State shall provide that there is paid
to the agency or district a percent of such amount that is not less
than the percentage of such expenditure or expense that is paid by such
agency or district.''.
(d) Uniform Methodology for School-Based Administrative Claims.--
Not later than 90 days after the date of the enactment of this Act, the
Administrator of the Health Care Financing Administration, in
consultation with State medicaid and State educational agencies and
local school systems, shall develop and implement a uniform methodology
for claims for payment of administrative expenses furnished under title
XIX of the Social Security Act by State or local educational agencies
or school districts. Such methodology shall be based on standards
related to time studies and population estimates and a national
standard for determining payment for such administrative expenses.
(e) Effective Date.--
(1) In general.--The amendments made by this section (other
than by subsection (b)) shall apply to items and services
provided on and after the date of the enactment of this Act,
without regard to whether implementing regulations are in
effect.
(2) Managed care amendments.--The amendments made by
subsection (b) shall apply to contracts entered into or renewed
on or after the date of the enactment of this Act.
(3) Regulations.--The Secretary of Health and Human
Services shall promulgate such final regulations as are
necessary to carry out the amendments made by this section not
later than 1 year after the date of the enactment of this Act.
SEC. 408. EXTENSION OF AUTHORITY OF STATE MEDICAID FRAUD CONTROL UNITS.
(a) Extension of Authority To Investigate and Prosecute Fraud in
Other Federal Health Care Programs.--Section 1903(q)(3) of the Social
Security Act (42 U.S.C. 1396b(q)(3)) is amended--
(1) by inserting ``(A)'' after ``in connection with''; and
(2) by striking ``title.'' and inserting ``title; and (B)
upon the approval of the Inspector General of the relevant
Federal agency, any aspect of the provision of health care
services and activities of providers of such services under any
Federal health care program (as defined in section
1128B(f)(1)), if the suspected fraud or violation of law in
such case or investigation is primarily related to the State
plan under this title.''.
(b) Recoupment of Funds.--Section 1903(q)(5) of such Act (42 U.S.C.
1396b(q)(5)) is amended--
(1) by inserting ``or under any Federal health care program
(as so defined)'' after ``plan''; and
(2) by adding at the end the following: ``All funds
collected in accordance with this paragraph shall be credited
exclusively to, and available for expenditure under, the
Federal health care program (including the State plan under
this title) that was subject to the activity that was the basis
for the collection.''.
(c) Extension of Authority To Investigate and Prosecute Resident
Abuse in Non-Medicaid Board and Care Facilities.--Section 1903(q)(4) of
such Act (42 U.S.C. 1396b(q)(4)) is amended to read as follows:
``(4)(A) The entity has--
``(i) procedures for reviewing complaints of abuse
or neglect of patients in health care facilities which
receive payments under the State plan under this title;
``(ii) at the option of the entity, procedures for
reviewing complaints of abuse or neglect of patients
residing in board and care facilities; and
``(iii) procedures for acting upon such complaints
under the criminal laws of the State or for referring
such complaints to other State agencies for action.
``(B) For purposes of this paragraph, the term `board and
care facility' means a residential setting which receives
payment (regardless of whether such payment is made under the
State plan under this title) from or on behalf of two or more
unrelated adults who reside in such facility, and for whom one
or both of the following is provided:
``(i) Nursing care services provided by, or under
the supervision of, a registered nurse, licensed
practical nurse, or licensed nursing assistant.
``(ii) A substantial amount of personal care
services that assist residents with the activities of
daily living, including personal hygiene, dressing,
bathing, eating, toileting, ambulation, transfer,
positioning, self-medication, body care, travel to
medical services, essential shopping, meal preparation,
laundry, and housework.''.
(d) Effective Date.--The amendments made by this section take
effect on the date of the enactment of this Act.
SEC. 409. SPECIAL ALLOWANCE ADJUSTMENT FOR STUDENT LOANS.
(a) Amendment.--Section 438(b)(2) of the Higher Education Act of
1965 (20 U.S.C. 1087-1(b)(2)) is amended--
(1) in subparagraph (A), by striking ``(G), and (H)'' and
inserting ``(G), (H), and (I)'';
(2) in subparagraph (B)(iv), by striking ``(G), or (H)''
and inserting ``(G), (H), or (I)'';
(3) in subparagraph (C)(ii), by striking ``(G) and (H)''
and inserting ``(G), (H), and (I)'';
(4) in the heading of subparagraph (H), by striking ``july
1, 2003'' and inserting ``january 1, 2000'';
(5) in subparagraph (H), by striking ``July 1, 2003,'' each
place it appears and inserting ``January 1, 2000,''; and
(6) by inserting after subparagraph (H) the following new
subparagraph:
``(I) Loans disbursed on or after january 1, 2000,
and before july 1, 2003.--
``(i) In general.--Notwithstanding
subparagraphs (G) and (H), but subject to
paragraph (4) and clauses (ii), (iii), and (iv)
of this subparagraph, and except as provided in
subparagraph (B), the special allowance paid
pursuant to this subsection on loans for which
the first disbursement is made on or after
January 1, 2000, and before July 1, 2003, shall
be computed--
``(I) by determining the average of
the bond equivalent rates of the quotes
of the 3-month commercial paper
(financial) rates in effect for each of
the days in such quarter as reported by
the Federal Reserve in Publication H-15
(or its successor) for such 3-month
period;
``(II) by subtracting the
applicable interest rates on such loans
from such average bond equivalent rate;
``(III) by adding 2.34 percent to
the resultant percent; and
``(IV) by dividing the resultant
percent by 4.
``(ii) In school and grace period.--In the
case of any loan for which the first
disbursement is made on or after January 1,
2000, and before July 1, 2003, and for which
the applicable rate of interest is described in
section 427A(k)(2), clause (i)(III) of this
subparagraph shall be applied by substituting
`1.74 percent' for `2.34 percent'.
``(iii) PLUS loans.--In the case of any
loan for which the first disbursement is made
on or after January 1, 2000, and before July 1,
2003, and for which the applicable rate of
interest is described in section 427A(k)(3),
clause (i)(III) of this subparagraph shall be
applied by substituting `2.64 percent' for
`2.34 percent', subject to clause (v) of this
subparagraph.
``(iv) Consolidation loans.--In the case of
any consolidation loan for which the
application is received by an eligible lender
on or after January 1, 2000, and before July 1,
2003, and for which the applicable interest
rate is determined under section 427A(k)(4),
clause (i)(III) of this subparagraph shall be
applied by substituting `2.64 percent' for
`2.34 percent', subject to clause (vi) of this
subparagraph.
``(v) Limitation on special allowances for
plus loans.--In the case of PLUS loans made
under section 428B and first disbursed on or
after January 1, 2000, and before July 1, 2003,
for which the interest rate is determined under
section 427A(k)(3), a special allowance shall
not be paid for such loan during any 12-month
period beginning on July 1 and ending on June
30 unless, on the June 1 preceding such July
1--
``(I) the bond equivalent rate of
91-day Treasury bills auctioned at the
final auction held prior to such June 1
(as determined by the Secretary for
purposes of such section); plus
``(II) 3.1 percent,
exceeds 9.0 percent.
``(vi) Limitation on special allowances for
consolidation loans.--In the case of
consolidation loans made under section 428C and
for which the application is received on or
after January 1, 2000, and before July 1, 2003,
for which the interest rate is determined under
section 427A(k)(4), a special allowance shall
not be paid for such loan during any 3-month
period ending March 31, June 30, September 30,
or December 31 unless--
``(I) the average of the bond
equivalent rates of the quotes of the
3-month commercial paper (financial)
rates in effect for each of the days in
such quarter as reported by the Federal
Reserve in Publication H-15 (or its
successor) for such 3-month period;
plus
``(II) 2.64 percent,
exceeds the rate determined under section
427A(k)(4).''.
(b) Effective Date.--Subparagraph (I) of section 438(b)(2) of the
Higher Education Act of 1965 (20 U.S.C. 1087-1(b)(2)) as added by
subsection (a) of this section shall apply with respect to any payment
pursuant to such section with respect to any 3-month period beginning
on or after January 1, 2000, for loans for which the first disbursement
is made after such date.
Passed the House of Representatives October 19, 1999.
Attest:
Clerk.