Congressional Record, Volume 144 Issue 70 (Wednesday, June 3, 1998)

[Congressional Record Volume 144, Number 70 (Wednesday, June 3, 1998)]
[House]
[Pages H4005-H4024]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

TICKET TO WORK AND SELF-SUFFICIENCY ACT OF 1998

Mrs. MYRICK. Mr. Speaker, by direction of the Committee on Rules, I
call up House Resolution 450 and ask for its immediate consideration.

[[Page H4006]]

The Clerk read the resolution, as follows:

H. Res. 450

Resolved, That upon the adoption of this resolution it
shall be in order without intervention of any point of order
to consider in the House the bill (H.R. 3433) to amend the
Social Security Act to establish a Ticket to Work and Self-
Sufficiency Program in the Social Security Administration to
provide beneficiaries with disabilities meaningful
opportunities to return to work and to extend Medicare
coverage for such beneficiaries, and to amend the Internal
Revenue Code of 1986 to provide a tax credit for impairment-
related work expenses. The bill shall be considered as read
for amendment. The amendment recommended by the Committee on
Ways and Means now printed in the bill shall be considered as
adopted, modified by the amendment printed in the report of
the Committee on Rules accompanying this resolution. The
previous question shall be considered as ordered on the bill,
as amended, and on any further amendment thereto to final
passage without intervening motion except: (1) one hour of
debate on the bill, as amended, equally divided and
controlled by the chairman and ranking minority member of the
Committee on Ways and Means; (2) a further amendment printed
in the Congressional Record pursuant to clause 6 of rule
XXIII, if offered by Representative Rangel of New York or his
designee, which shall be considered as read and shall be
separately debatable for one hour equally divided and
controlled by the proponent and an opponent; and (3) one
motion to recommit with or without instructions.

The SPEAKER pro tempore. The gentlewoman from North Carolina (Mrs.
Myrick) is recognized for 1 hour.
Mrs. MYRICK. Mr. Speaker, for the purposes of debate only, I yield
the customary 30 minutes to the gentlewoman from New York (Ms.
Slaughter), pending which I yield myself such time as I may consume.
During consideration of this resolution, all time yielded is for the
purpose of debate only.
Before the Memorial Day recess, the Committee on Rules met and
granted a modified closed rule for consideration of H.R. 3433 in the
House without intervention on any point of order. The rule provides
that the amendment recommended by the Committee on Ways and Means shall
be considered as adopted, as modified by the amendment printed in the
report of the Committee on Rules.
The rule provides for 1 hour of debate on the bill, as amended,
equally divided between the chairman and ranking minority member of the
Committee on Ways and Means. The rule provides for consideration of an
amendment printed in the Congressional Record, if offered by the
gentleman from New York (Mr. Rangel) or his designee, which shall be
considered as read and shall be separately debatable for 1 hour,
equally divided between the proponent and opponent.
Finally, the rule provides for one motion to recommit with or without
instructions.
Mr. Speaker, H.R. 3433 would reform the system under which people
collect Social Security disability benefits and receive vocational
rehabilitation services. Under the bill, recipients would receive a
ticket or voucher to obtain job training services in a variety of
private sector agencies. The Federal Government would then reimburse
these agencies based on the number of recipients they have moved into
gainful employment.
CBO estimates that H.R. 3433 would add $38 million to the Federal
surplus from 1999 to 2003 because the bill will help to move disability
recipients off welfare and into work. Many individuals with
disabilities want to work. They are limited, though, in their ability
to access rehabilitation services; and they fear losing health care
coverage and benefits.
Having served on the board of Learning How in Charlotte for many
years, I have seen the frustrations firsthand and the concerns.

{time} 1600

This bill removes such disincentives. It broadens the rehabilitation
choices of the disabled and it extends Medicare coverage for an
additional 2 years for those who participate in the Ticket to Work
program.
Mr. Speaker, it is interesting because a lot of us do not even have
any idea that we may one day become disabled. I had a good friend in
this field who was disabled who called the rest of us TADs, it was
temporarily disabled. The idea is that any day, any time it could
happen to one of us and we would be in the same position. The bill
makes sense. It grants the disabled a measure of independence while
adding to the projected Federal surplus.
I urge my colleagues to support this rule and to support the
underlying legislation.
Mr. Speaker, I reserve the balance of my time.
Ms. SLAUGHTER. Mr. Speaker, I thank the gentlewoman from North
Carolina for yielding me the customary 30 minutes, and I yield myself
such time as I may consume.
(Ms. SLAUGHTER asked and was given permission to revise and extend
her remarks.)
Ms. SLAUGHTER. Mr. Speaker, H.Res. 450 is a modified closed rule. The
rule allows one amendment, if offered by Ways and Means Ranking Member
the gentleman from New York (Mr. Rangel) and if the amendment is
previously printed in the Congressional Record.
In general, open rules best protect all Members' rights to fully
represent their constituents. However, I recognize the potential
problems of allowing an unfettered amendment process on bills, such as
this one, that amend the Social Security and Medicare Acts. The Rules
Committee has followed the useful tradition of allowing only limited
floor amendment during consideration of bills that revise these basic
safety net programs.
Mr. Speaker, the current disability system has not kept pace with the
development of new technologies and therapies that allow individuals
with disabilities to live and work in the mainstream of our society.
Too often, our disability system punishes those who wish to work toward
living independently by reducing benefits and ending the Medicare
benefits on which they depend for their health care.
I am proud to have supported legislation that would aid individuals
with disabilities in education, housing, transportation, and many other
areas. I was a cosponsor of the Americans with Disabilities Act and
have sponsored legislation to prevent genetic discrimination. I am now
equally pleased to support H.R. 3433, the Ticket to Work and Self-
Sufficiency Act. I am a cosponsor of this legislation, and I urge my
colleagues to vote for its passage today.
H.R. 3433 will help to bring our Nation's disability system into line
with the reality experienced by persons living with a disability.
Individuals with disabilities do want to work, but they need
rehabilitation and support services to better enable them to become
self-sufficient over time. In particular, Medicare must be maintained
for individuals who rely on these services to remain healthy and to be
able to work.
H.R. 3433 gives individuals with disabilities the ability to choose
the provider of employment or vocational rehabilitation services that
meets their particular needs. The chosen employment network will work
with the beneficiary to develop an individual plan, including the
specific services needed to achieve that individual's employment goal.
Perhaps most importantly, during this transition period, Medicare
coverage is guaranteed for an additional 2 years. This will allow
beneficiaries to concentrate on building their employment skills and
careers without the fear that they will lose their health care if they
earn above a minimum threshold.
To encourage the best and most comprehensive assistance for
beneficiaries, this Act has provider payment plans keyed to the
successful attainment of milestones toward permanent employment. For
example, under the outcome payment system, the provider could receive
40 percent of the average monthly benefit for each month the
beneficiary did not receive benefits because he was working.
Mr. Speaker, this legislation provides a responsible and humane
alternative to our current disability system, by empowering individuals
with disabilities to take charge of their own lives. It will enable
many people to break free of a system that, too often, forces persons
with disabilities to remain impoverished to continue to receive
benefits. Instead it rewards those who want to work. I look forward to
casting my vote today in strong support of this bill.
I urge my colleagues to support the rule so that we may move this
important legislation forward toward enactment into law.

[[Page H4007]]

Mr. Speaker, I yield back the balance of my time.
Mrs. MYRICK. Mr. Speaker, I yield back the balance of my time, and I
move the previous question on the resolution.
The previous question was ordered.
The resolution was agreed to.
A motion to reconsider was laid on the table.
Mr. ARCHER. Mr. Speaker, pursuant to House Resolution 450, I call up
the bill (H.R. 3433) to amend the Social Security Act to establish a
Ticket to Work and Self-Sufficiency Program in the Social Security
Administration to provide beneficiaries with disabilities meaningful
opportunities to return to work and to extend Medicare coverage for
such beneficiaries, and to amend the Internal Revenue Code of 1986 to
provide a tax credit for impairment-related work expenses, and ask for
its immediate consideration in the House.
The Clerk read the title of the bill.
The SPEAKER pro tempore (Mr. Pease). The bill is considered read for
amendment.
The text of H.R. 3433 is as follows:

H.R. 3433

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

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Ticket to Work and Self-
Sufficiency Act of 1998''.

SEC. 2. THE TICKET TO WORK AND SELF-SUFFICIENCY PROGRAM.

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

``the ticket to work and self-sufficiency program

``Sec. 1147. (a) In General.--The Commissioner of Social
Security shall establish a Ticket to Work and Self-
Sufficiency Program, under which a disabled beneficiary may
use a ticket to work and self-sufficiency issued by the
Commissioner in accordance with this section to obtain
employment services, vocational rehabilitation services, or
other support services from an employment network which is of
the beneficiary's choice and which is willing to provide such
services to such beneficiary.
``(b) Ticket System.--
``(1) Distribution of tickets.--The Commissioner of Social
Security may issue a ticket to work and self-sufficiency to
disabled beneficiaries for participation in the Program.
``(2) Assignment of tickets.--A disabled beneficiary
holding a ticket to work and self-sufficiency may assign the
ticket to any employment network of the beneficiary's choice
which is serving under the Program and is willing to accept
the assignment.
``(3) Ticket terms.--A ticket issued under paragraph (1)
shall consist of a document which evidences the
Commissioner's agreement to pay (as provided in paragraph
(4)) an employment network, which is serving under the
Program and to which such ticket is assigned by the
beneficiary, for such employment services, vocational
rehabilitation services, and other support services as the
employment network may agree to provide to the beneficiary.
``(4) Payments to employment networks.--The Commissioner
shall pay an employment network under the Program in
accordance with the outcome payment system under subsection
(h)(2) or under the outcome-milestone payment system under
subsection (h)(3) (whichever is elected pursuant to
subsection (h)(1)). An employment network may not request or
receive compensation for such services from the beneficiary.
``(c) State Participation.--
``(1) Periodic elections.--Each State agency described in
section 222 or 1615 may elect to participate in the Program
(or to revoke any such election) as an employment network.
The Commissioner shall provide for periodic opportunities for
exercising such elections (and revocations).
``(2) Treatment of state agencies.--Any such election (or
revocation) by a State agency described in section 222 or
1615 taking effect during any period for which an individual
residing in the State is a disabled beneficiary and a client
of the State agency shall not be effective with respect to
such individual to the extent that such election (or
revocation) would result in any change in the method of
payment to the State agency with respect to the individual
from the method of payment to the State agency with respect
to the individual in effect immediately before such election
(or revocation).
``(3) Effect of participation by state agency.--
``(A) State agencies participating.--In any case in which a
State agency described in section 222 or 1615 elects under
paragraph (1) to participate in the Program--
``(i) the employment services, vocational rehabilitation
services, and other support services which, upon assignment
of tickets to work and self-sufficiency, are provided to
disabled beneficiaries by the State agency acting as an
employment network shall be governed by plans for
vocational rehabilitation services approved under title I
of the Rehabilitation Act of 1973, and
``(ii) the provisions of section 222(d) and the provisions
of section 1615 shall not apply with respect to such State.
``(B) State agencies administering maternal and child
health services programs.--Subparagraph (A) shall not apply
with respect to any State agency administering a program
under title V of this Act.
``(d) Responsibilities of the Commissioner of Social
Security.--
``(1) Selection and qualifications of program managers.--
The Commissioner of Social Security shall enter into
agreements with one or more organizations in the private or
public sector for service as a program manager to assist the
Commissioner in administering the Program. Any such program
manager shall be selected by means of a competitive bidding
process, from among organizations in the private or public
sector with available expertise and experience in the field
of vocational rehabilitation or employment services.
``(2) Tenure, renewal, and early termination.--Each
agreement entered into under paragraph (1) shall provide for
early termination upon failure to meet performance standards
which shall be specified in the agreement and which shall be
weighted to take into account any performance in prior terms.
Such performance standards shall include (but are not limited
to)--
``(A) measures for ease of access by beneficiaries to
services, and
``(B) measures for determining the extent to which failures
in obtaining services for beneficiaries fall within
acceptable parameters, as determined by the Commissioner.
``(3) Preclusion from direct participation in delivery of
services in own service area.--Agreements under paragraph (1)
shall preclude--
``(A) direct participation by a program manager in the
delivery of employment services, vocational rehabilitation
services, or other support services to beneficiaries in the
service area covered by the program manager's agreement, and
``(B) the holding by a program manager of a financial
interest in an employment network or service provider which
provides services in a geographic area covered under the
program manager's agreement.
``(4) Selection of employment networks.--The Commissioner
shall select and enter into agreements with employment
networks for service under the Program. Such employment
networks shall be in addition to State agencies serving as
employment networks pursuant to elections under subsection
(c).
``(5) Termination of agreements with employment
networks..--The Commissioner shall terminate agreements with
employment networks for inadequate performance, as determined
by the Commissioner.
``(6) Quality assurance.--The Commissioner shall provide
for such periodic reviews as are necessary to provide for
effective quality assurance in the provision of services by
employment networks. The Commissioner shall take into account
the views of consumers and the program manager under which
the employment networks serve and shall consult with
providers of services to develop performance measurements.
The Commissioner shall ensure that the results of the
periodic reviews are made available to beneficiaries who are
prospective service recipients as they select employment
networks. The Commissioner shall ensure the performance of
periodic surveys of beneficiaries receiving services under
the Program designed to measure customer service
satisfaction.
``(7) Dispute resolution.--The Commissioner shall provide
for a mechanism for resolving disputes between beneficiaries
and employment networks and between program managers and
employment networks. The Commissioner shall afford a party to
such a dispute a reasonable opportunity for a full and fair
review of the matter in dispute.
``(e) Program Managers.--
``(1) In general.--A program manager shall conduct tasks
appropriate to assist the Commissioner in carrying out the
Commissioner's duties in administering the Program.
``(2) Recruitment of employment networks.--A program
manager shall recruit, and recommend for selection by the
Commissioner, employment networks for service under the
Program. The program manager shall carry out such recruitment
and provide such recommendations, and shall monitor all
employment networks serving in the Program in the geographic
area covered under the program manager's agreement, to the
extent necessary and appropriate to ensure that adequate
choices of services are made available to beneficiaries.
Employment networks may serve under the Program only pursuant
to an agreement entered into with the Commissioner under the
Program incorporating the applicable provisions of this
section and regulations thereunder, and the program manager
shall provide and maintain assurances to the Commissioner
that payment by the Commissioner to employment networks
pursuant to this section is warranted based on compliance by
such employment networks with the terms of such agreement and
this section. The program manager shall not impose numerical
limits on the number of employment networks to be recommended
pursuant to this paragraph.
``(3) Facilitation of access by beneficiaries to employment
networks.--A program manager shall facilitate access by
beneficiaries to employment networks. The program
manager shall ensure that each beneficiary is allowed
changes in employment networks for good cause, as
determined by

[[Page H4008]]

the Commissioner, without being deemed to have rejected
services under the Program. The program manager shall
establish and maintain lists of employment networks
available to beneficiaries and shall make such lists
generally available to the public.
``(4) Ensuring availability of adequate services.--The
program manager shall ensure that employment networks provide
employment services, vocational rehabilitation services, or
other support services to beneficiaries throughout specified
service areas, 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 their services under the Program has
reasonable access to employment services, vocational
rehabilitation services, or other support services. Such
services may include case management, 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.
``(f) Employment Networks.--
``(1) Qualifications for employment networks.--Each
employment network serving under the Program shall consist of
an agency or instrumentality of a State (or a political
subdivision thereof) or a private entity, which assumes
responsibility for the coordination and delivery of services
under the Program to individuals assigning to the employment
network tickets to work and self-sufficiency issued under
subsection (b). No employment network may serve under the
Program unless it demonstrates to the Commissioner
substantial expertise and experience in the field of
employment services, vocational rehabilitation services, or
other support services for individuals with disabilities and
provides an array of such services. An employment network
shall consist of either a single provider of such services or
of an association of such providers organized so as to
combine their resources into a single entity. An employment
network may meet the requirements of subsection (e)(4) by
providing services directly, or by entering into agreements
with other individuals or entities providing appropriate
employment services, vocational rehabilitation services, or
other support services.
``(2) Requirements relating to provision of services.--Each
employment network serving under the Program shall be
required under the terms of its agreement with the
Commissioner to--
``(A) serve prescribed service areas,
``(B) meet, and maintain compliance with, both general
selection criteria (such as professional and governmental
certification and educational credentials) and specific
selection criteria (such as the extent of work experience by
the provider with specific populations), and
``(C) take such measures as are necessary to ensure that
employment services, vocational rehabilitation services, and
other support services provided under the Program by, or
under agreements entered into with, the employment network
are provided under appropriate individual employment plans
meeting the requirements of subsection (g).
``(3) Annual financial reporting.--Each employment network
shall meet financial reporting requirements as prescribed by
the Commissioner.
``(4) Periodic outcomes reporting.--Each employment network
shall prepare periodic reports, on at least an annual basis,
itemizing for the covered period specific outcomes achieved
with respect to specific services provided by the employment
network. Such reports shall conform to a national model
prescribed under this section. Each employment network shall
provide a copy of the latest report issued by the employment
network pursuant to this paragraph to each beneficiary upon
enrollment under the Program for services to be received
through such employment network. Upon issuance of each report
to each beneficiary, a copy of the report shall be maintained
in the files of the employment network pertaining to the
beneficiary. The program manager shall ensure that copies of
all such reports issued under this paragraph are made
available to the public under reasonable terms.
``(g) Individual Employment Plans.--
``(1) In general.--Each employment network shall--
``(A) take such measures as are necessary to ensure that
employment services, vocational rehabilitation services, and
other support services provided under the Program by, or
under agreements entered into with, the employment network
are provided under appropriate individual employment plans
as defined by the Commissioner, and
``(B) develop and implement each such individual employment
plan, in the case of each beneficiary receiving such
services, in a manner that affords such beneficiary the
opportunity to exercise informed choice in selecting an
employment goal and specific services needed to achieve that
employment goal.

A beneficiary's individual employment plan shall take effect
upon approval by the beneficiary.
``(2) Employment evaluation.--In devising the employment
plan, the employment network shall undertake an employment
evaluation with respect to the beneficiary. Each employment
evaluation shall set forth in writing such elements and shall
be in such format as the Commissioner shall prescribe.
``(h) Employment Network Payment Systems.--
``(1) Election of payment system by employment networks.--
``(A) In general.--The Program shall provide for payment
authorized by the Commissioner to employment networks under
either an outcome payment system or an outcome-milestone
payment system. Each employment network shall elect which
payment system will be utilized by the employment network,
and, for such period of time as such election remains in
effect, the payment system so elected shall be utilized
exclusively in connection with such employment network
(except as provided in subparagraph (B)).
``(B) Method of payment to employment networks.--Any such
election by an employment network taking effect during any
period for which a disabled beneficiary is receiving services
from such employment network shall not be effective with
respect to such beneficiary to the extent that such election
would result in any change in the method of payment to the
employment network with respect to services provided to such
beneficiary from the method of payment to the employment
network with respect to services provided to such beneficiary
as of immediately before such election.
``(2) Outcome payment system.--
``(A) In general.--The outcome payment system shall consist
of a payment structure governing employment networks electing
such system under paragraph (1)(A) which meets the
requirements of this paragraph.
``(B) Payments made during outcome payment period.--The
outcome payment system shall provide for a schedule of
payments to an employment network, in connection with each
individual who is a beneficiary, for each month described in
paragraph (4)(B) in connection with such individual which
occurs during the individual's outcome payment period.
``(C) Computation of payments to employment network.--The
payment schedule of the outcome payment system shall be
designed so that--
``(i) the payment for each of the 60 months during the
outcome payment period which are described in paragraph
(4)(B) is equal to a fixed percentage of the payment
calculation base for the calendar year in which such month
occurs, and
``(ii) such fixed percentage is set at a percentage which
does not exceed 40 percent.
``(3) Outcome-milestone payment system.--
``(A) In general.--The outcome-milestone payment system
shall consist of a payment structure governing employment
networks electing such system under paragraph (1)(A) which
meets the requirements of this paragraph.
``(B) Early payments upon attainment of milestones in
advance of outcome payment periods.--The outcome-milestone
payment system shall provide for one or more milestones, with
respect to beneficiaries receiving services from an
employment network under the Program, which are directed
toward the goal of permanent employment. Such milestones
shall form a part of a payment structure which provides, in
addition to payments made during outcome payment periods,
payments made prior to outcome payment periods in amounts
based on the attainment of such milestones.
``(C) Limitation on total payments to employment network.--
The payment schedule of the outcome milestone payment
system shall be designed so that the total of the payments
to the employment network with respect to each beneficiary
is less than, on a net present value basis (using an
interest rate determined by the Commissioner that
appropriately reflects the cost of funds faced by
providers), the total amount to which payments to the
employment network with respect to the beneficiary would
be limited if the employment network were paid under the
outcome payment system.
``(4) Definitions.--For purposes of this subsection--
``(A) Payment calculation base.--The term `payment
calculation base' means, for any calendar year--
``(i) in connection with a title II disability beneficiary,
the average disability insurance benefit payable under
section 223 for all beneficiaries for months during the
preceding calendar year, and
``(ii) in connection with a title XVI disability
beneficiary (who is not concurrently a title II disability
beneficiary), the average payment of supplemental security
income benefits based on disability payable under title XVI
(excluding State supplementation) to all beneficiaries having
attained 18 years of age for months during the preceding
calendar year.
``(B) Outcome payment period.--The term `outcome payment
period' means, in connection with an individual who is a
disabled beneficiary, a period--
``(i) beginning with the first month--

``(I) for which benefits are not payable to such individual
by reason of engagement in substantial gainful activity, and
``(II) which ends after such beneficiary has assigned a
ticket to work and self-sufficiency to an employment network,
and

``(ii) ending with the 60th month (consecutive or
otherwise) following the first month for which benefits are
not payable to such individual by reason of engagement in
work activity.
``(5) Periodic review and alterations of prescribed
schedules.--

[[Page H4009]]

``(A) Percentages and periods.--The Commissioner of Social
Security shall periodically review the percentages specified
in paragraphs (2)(C) and (3)(C) and the period of time
specified in paragraph (4)(B) to determine whether such
percentages 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 any of such percentages 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 initially established by the
Commissioner pursuant to this section to determine whether to
allow an adequate incentive for employment networks to assist
beneficiaries to enter the workforce, taking into account
information provided to the Commissioner by program managers,
the Ticket to Work and Self-Sufficiency Advisory Panel, and
other reliable sources. The Commissioner may from time to
time alter the number and amounts of milestone payments
initially established by the Commissioner pursuant to this
section to the extent that the Commissioner determines that
such an alteration would allow an adequate incentive for
employment networks to assist beneficiaries to enter the
workforce. Such alteration shall be based on information
provided to the Commissioner by program managers, the Ticket
to Work and Self-Sufficiency Advisory Panel, or other
reliable sources.
``(i) Authorizations.--
``(1) Title ii disability beneficiaries.--There are
authorized to be transferred from the Federal Old-Age and
Survivors Insurance Trust Fund and the Federal Disability
Insurance Trust Fund each fiscal year such sums as may be
necessary to carry out the provisions of this section with
respect to title II disability beneficiaries. Money paid from
the Trust Funds under this section with respect to title II
disability beneficiaries who are entitled to benefits under
section 223 or who are entitled to benefits under section
202(d) on the basis of the wages and self-employment income
of such beneficiaries, shall be charged to the Federal
Disability Insurance Trust Fund, and all other money paid
from the Trust Funds under this section shall be charged to
the Federal Old-Age and Survivors Insurance Trust Fund. The
Commissioner of Social Security shall determine according to
such methods and procedures as shall be prescribed under this
section--
``(A) the total amount to be paid to program managers and
employment networks under this section, and
``(B) subject to the provisions of the preceding sentence,
the amount which should be charged to each of the Trust
Funds.
``(2) Title xvi disability beneficiaries.--Amounts
authorized to be appropriated to the Social Security
Administration under section 1601 (as in effect pursuant to
the amendments made by section 301 of the Social Security
Amendments of 1972) shall include amounts necessary to carry
out the provisions of this section with respect to title XVI
disability beneficiaries.
``(j) Definitions.--For purposes of this section--
``(1) Disabled beneficiary.--The term `disabled
beneficiary' means a title II disability beneficiary or a
title XVI disability beneficiary.
``(2) Title ii disability beneficiary.--The term `title II
disability beneficiary' means an individual entitled to
disability insurance benefits under section 223 or to monthly
insurance benefits under section 202 based on such
individual's disability (as defined in section 223(d)). An
individual is a title II disability beneficiary for each
month for which such individual is entitled to such benefits.
``(3) Title xvi disability beneficiary.--The term `title
XVI disability beneficiary' means an individual eligible for
supplemental security income benefits under title XVI on the
basis of blindness (within the meaning of section 1614(a)(2))
or disability (within the meaning of section 1614(a)(3)). An
individual is a title XVI disability beneficiary for each
month for which such individual is eligible for such
benefits.
``(k) Regulations.--The Commissioner of Social Security
shall prescribe such regulations as are necessary to carry
out the provisions of this section.''.
(b) Conforming Amendments.--
(1) Amendments to title ii.--
(A) Section 222(a) of such Act (42 U.S.C. 422(a)) is
repealed.
(B) Section 222(b) of such Act is repealed.
(C) Section 225(b)(1) of such Act (42 U.S.C. 425(b)(1)) is
amended by striking ``a program of vocational rehabilitation
services'' and inserting ``a program consisting of the Ticket
to Work and Self-Sufficiency Program under section 1147 or
another program of vocational rehabilitation services,
employment services, or other support services''.
(2) Amendments to title xvi.--
(A) Section 1615(a) of such Act (42 U.S.C. 1382d(a)) is
amended to read as follows:
``Sec. 1615. (a) In the case of any blind or disabled
individual who--
``(1) has not attained age 16, and
``(2) with respect to whom benefits are paid under this
title,
the Commissioner of Social Security shall make provision for
referral of such individual to the appropriate State agency
administering the State program under title V.''.
(B) Section 1615(c) of such Act is repealed.
(c) Effective Date.--Subject to subsection (d), the
amendments made by subsections (a) and (b) shall take effect
with the first month following one year after the date of the
enactment of this Act.
(d) Graduated Implementation of Program.--
(1) In general.--Not later than 360 days 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)(B) 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.
(2) Requirements.--Implementation of the Program at each
phase-in site shall be carried out on a wide enough scale to
permit a thorough evaluation of the alternative methods under
consideration, so as to ensure that the most efficacious
methods are determined and in place for full implementation
of the Program on a timely basis.
(3) Full implementation.--The Commissioner shall ensure
that the Program is fully implemented as soon as practicable
on or after the effective date specified in subsection (c)
but not later than six years after such date.
(4) Ongoing evaluation of program.--
(A) In general.--The Commissioner shall design and conduct
a series of evaluations to assess the cost-effectiveness of
activities carried out under this section and the amendments
made thereby, as well as the effects of this section and the
amendments made thereby on work outcomes for beneficiaries
receiving tickets to work and self-sufficiency under the
Program.
(B) Methodology.--
(i) Design and implementation.--The Commissioner shall
design the series of evaluations after receiving relevant
advice from experts in the fields of disability, vocational
rehabilitation, and program evaluation. In designing and
carrying out such evaluations, the Commissioner shall consult
with the Comptroller General of the United States and other
agencies of the Federal Government and with private
organizations with appropriate expertise. Before provision
of services begins under any phase of Program
implementation, the Commissioner shall ensure that plans
for such evaluations and data collection methods are in
place and ready for implementation.
(ii) Specific matters to be addressed.--Each such
evaluation shall address (but is not limited to):

(I) the annual cost (including net cost) of the Program and
the annual cost (including net cost) that would have been
incurred in the absence of the Program;
(II) the determinants of return to work, including the
characteristics of beneficiaries in receipt of tickets under
the Program;
(III) the types of employment services, vocational
rehabilitation services, and other support services furnished
to beneficiaries in receipt of tickets under the Program who
return to work and to those who do not return to work;
(IV) the duration of employment services, vocational
rehabilitation services, and other support services furnished
to beneficiaries in receipt of tickets under the Program who
return to work and the duration of such services furnished to
those who do not return to work and the cost to employment
networks of furnishing such services;
(V) the employment outcomes, including wages, occupations,
benefits, and hours worked, of beneficiaries who return to
work after receiving tickets under the Program and those who
return to work without receiving such tickets;
(VI) the characteristics of providers whose services are
provided within an employment network under the Program;
(VII) the extent (if any) to which employment networks
display a greater willingness to provide services to disabled
beneficiaries;
(VIII) the characteristics (including employment outcomes)
of those beneficiaries who receive services under the outcome
payment system and of those beneficiaries who receive
services under the outcome-milestone payment system; and
(IX) measures of satisfaction among beneficiaries in
receipt of tickets under the Program.

[[Page H4010]]

(e) The Ticket to Work and Self-Sufficiency Advisory
Panel.--
(1) Establishment.--There is established in the Social
Security Administration a panel to be known as the ``Ticket
to Work and Self-Sufficiency Advisory Panel'' (in this
subsection referred to as the ``Panel'').
(2) Duties of panel.--It shall be the duty of the Panel
to--
(A) advise the Commissioner of Social Security on
establishing phase-in sites for the Ticket to Work and Self-
Sufficiency Program and on fully implementing the Program
thereafter,
(B) advise the Commissioner with respect to the refinement
of access of disabled beneficiaries to employment networks,
payment systems, and management information systems and
advise the Commissioner whether such measures are being taken
to the extent necessary to ensure the success of the Program,
(C) advise the Commissioner regarding the most effective
designs for research and demonstration projects associated
with the Program or conducted pursuant to subsection (h), and
(D) furnish progress reports on the Program to the
President and each House of the Congress.
(3) Membership.--
(A) Number and appointment.--The Panel shall be composed of
6 members as follows:
(i) 1 member appointed by the Chairman of the Committee on
Ways and Means of the House of Representatives;
(ii) 1 member appointed by the ranking minority member of
the Committee on Ways and Means of the House of
Representatives;
(iii) 1 member appointed by the Chairman of the Committee
on Finance of the Senate;
(iv) 1 member appointed by the ranking minority member of
the Committee on Finance of the Senate; and
(v) 2 members appointed by the President, not more than 1
of whom may be of the same political party.
(B) Representation.--Of the members appointed under
subparagraph (A)--
(i) at least one shall represent the interests of
recipients of employment services, vocational rehabilitation
services, and other support services,
(ii) at least one shall represent the interests of
providers of employment services, vocational rehabilitation
services, and other support services, and
(iii) at least one shall represent the interests of private
employers.
(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).
(ii) Terms of initial appointees.--As designated by the
President at the time of appointment, of the members first
appointed--

(I) 3 of the members appointed under subparagraph (A) shall
be appointed for a term of 2 years, and
(II) 3 of the members appointed under subparagraph (A)
shall be appointed for a term of 4 years.

(iii) Vacancies.--Any member appointed to fill a vacancy
occurring before the expiration of the term for which the
member's predecessor was appointed shall be appointed only
for the remainder of that term. A member may serve after the
expiration of that member's term until a successor has taken
office. A vacancy in the Panel shall be filled in the manner
in which the original appointment was made.
(D) Basic pay.--Members shall each be paid at a rate equal
to the daily equivalent of the rate of basic pay for level 4
of the Senior Executive Service, as in effect from time to
time under section 5382 of title 5, United States Code, for
each day (including travel time) during which they are
engaged in the actual performance of duties vested in the
Panel.
(E) Travel expenses.--Each member shall receive travel
expenses, including per diem in lieu of subsistence, in
accordance with sections 5702 and 5703 of title 5, United
States Code.
(F) Quorum.--4 members of the Panel shall constitute a
quorum but a lesser number may hold hearings.
(G) Chairperson.--The Chairperson of the Panel shall be
designated by the President. The term of office of the
Chairperson shall be 4 years.
(H) Meetings.--The Panel shall meet at least quarterly and
at other times at the call of the Chairperson or a majority
of its members.
(4) Director and staff of panel; experts and consultants.--
(A) Director.--The Panel shall have a Director who shall be
appointed by the Panel. The Director shall be paid at a rate
not to exceed the maximum rate of pay payable for GS-15 of
the General Schedule.
(B) Staff.--Subject to rules prescribed by the Panel, the
Director may appoint and fix the pay of additional personnel
as the Director considers appropriate.
(C) Experts and consultants.--Subject to rules prescribed
by the Panel, the Director may procure temporary and
intermittent services under section 3109(b) of title 5,
United States Code.
(D) Staff of federal agencies.--Upon request of the Panel,
the head of any Federal department or agency may detail, on a
reimbursable basis, any of the personnel of that department
or agency to the Panel to assist it in carrying out its
duties under this Act.
(5) Powers of panel.--
(A) Hearings and sessions.--The Panel may, for the purpose
of carrying out its duties under this subsection, hold such
hearings, sit and act at such times and places, and take such
testimony and evidence as the Panel considers appropriate.
(B) Powers of members and agents.--Any member or agent of
the Panel may, if authorized by the Panel, take any action
which the Panel is authorized to take by this section.
(C) Mails.--The Panel may use the United States mails in
the same manner and under the same conditions as other
departments and agencies of the United States.
(D) Administrative support services.--Upon the request of
the Panel, the Administrator of General Services shall
provide to the Panel, on a reimbursable basis, the
administrative support services necessary for the Panel to
carry out its duties under this subsection.
(6) Reports.--
(A) Interim reports.--The Panel shall submit to the
President and the Congress interim reports at least annually.
(B) Final report.--The Panel shall transmit a final report
to the President and the Congress not later than eight years
after the date of the enactment of this Act. The final report
shall contain a detailed statement of the findings and
conclusions of the Panel, together with its recommendations
for legislation and administrative actions which the Panel
considers appropriate.
(7) Termination.--The Panel shall terminate 30 days after
the date of the submission of its final report under
paragraph (6)(B).
(8) Authorization of appropriations.--There are authorized
to be appropriated from the Federal Old-Age and Survivors
Insurance Trust Fund, the Federal Disability Insurance Trust
Fund, and the general fund of the Treasury, as appropriate,
such sums as are necessary to carry out this subsection.
(f) Specific Regulations Required.--
(1) In general.--The Commissioner of Social Security shall
prescribe such regulations as are necessary to implement the
amendments made by this section.
(2) Specific matters to be included in regulations.--The
matters which shall be addressed in such regulations shall
include (but are not limited to)--
(A) the form and manner in which tickets to work and self-
sufficiency may be distributed to existing beneficiaries
pursuant to section 1147(b)(1) of such Act;
(B) the format and wording of such tickets, which shall
incorporate by reference any contractual terms governing
service by employment networks under the Program;
(C) the form and manner in which State agencies may elect
participation in the Ticket to Work and Self-Sufficiency
Program (and revoke such an election) pursuant to section
1147(c)(1) of such Act and provision for periodic
opportunities for exercising such elections (and
revocations);
(D) the status of State agencies under section 1147(c)(2)
at the time that State agencies exercise elections (and
revocations) under such section 1147(c)(1);
(E) the terms of agreements to be entered into with program
managers pursuant to section 1147(d) of such Act, including
(but not limited to)--
(i) the terms by which program managers are precluded from
direct participation in the delivery of services pursuant to
section 1147(d)(3) of such Act,
(ii) standards which must be met by quality assurance
measures referred to in paragraph (6) of section 1147(d) and
methods of recruitment of employment networks utilized
pursuant to paragraph (2) of section 1147(e), and
(iii) the format under which dispute resolution will
operate under section 1147(d)(7).
(F) the terms of agreements to be entered into with
employment networks pursuant to section 1147(d)(4) of such
Act, including (but not limited to)--
(i) the manner in which service areas are specified
pursuant to section 1147(f)(2)(A) of such Act,
(ii) the general selection criteria and the specific
selection criteria which are applicable to employment
networks under section 1147(f)(2)(B) of such Act in selecting
service providers,
(iii) specific requirements relating to annual financial
reporting by employment networks pursuant to section
1147(f)(3) of such Act, and
(iv) the national model to which periodic outcomes
reporting by employment networks must conform under section
1147(f)(4) of such Act;
(G) standards which must be met by individual employment
plans pursuant to section 1147(g) of such Act;
(H) standards which must be met by payment systems required
under section 1147(h) of such Act, including (but not limited
to)--
(i) the form and manner in which elections by employment
networks of payment systems are to be exercised pursuant to
section 1147(h)(1)(A),
(ii) the terms which must be met by an outcome payment
system under section 1147(h)(2);
(iii) the terms which must be met by an outcome-milestone
payment system under section 1147(h)(3);
(iv) any revision of the percentage specified in paragraph
(2)(C) of section 1147(h) of such Act or the period of time
specified in paragraph (4)(B) of such section 1147(h); and
(v) annual oversight procedures for such systems; and

[[Page H4011]]

(I) procedures for effective oversight of the Program by
the Commissioner of Social Security, including periodic
reviews and reporting requirements.
(g) Work Incentive Specialists.--The Commissioner shall
establish a corps of trained, accessible, and responsive work
incentive specialists to specialize in title II and title XVI
disability work incentives for the purpose of disseminating
accurate information to disabled beneficiaries (as defined in
section 1147(j)(1) of the Social Security Act as amended by
this Act) with respect to inquiries and issues relating to
work incentives.
(h) Demonstration Projects Providing for Reductions in
Disability Insurance Benefits Based on Earnings. --
(1) Authority.--The Commissioner shall conduct
demonstration projects for the purpose of evaluating, through
the collection of data, a program for title II disability
beneficiaries (as defined in section 1147(j)(2) of the Social
Security Act, as amended by this Act) under which each $1 of
benefits payable under section 223, or under section 202
based on the beneficiary's disability, is reduced for each $2
of such beneficiary's earnings that is above a level to be
determined by the Commissioner. Such projects shall be
conducted at a number of localities which the Commissioner
shall determine is sufficient to adequately evaluate the
appropriateness of national implementation of such a program.
Such projects shall identify reductions in Federal
expenditures that may result from the permanent
implementation of such a program.
(2) Scope and scale and matters to be determined.--
(A) In general.--The demonstration projects developed under
paragraph (1) shall be of sufficient duration, shall be of
sufficient scope, and shall be carried out on a wide enough
scale to permit a thorough evaluation of the project to
determine--
(i) the effects, if any, of induced entry and reduced exit,
(ii) the extent, if any, to which the project being tested
is affected by whether it is in operation in a locality
within an area under the administration of the Ticket to Work
and Self-Sufficiency Program, and
(iii) the savings that accrue to the Trust Funds under the
project being tested.
The Commissioner shall take into account advice provided by
the Ticket to Work and Self-Sufficiency Advisory Panel
pursuant to subsection (e)(2)(C).
(B) Additional matters.--The Commissioner shall also
determine with respect to each project--
(i) the annual cost (including net cost) of the project and
the annual cost (including net cost) that would have been
incurred in the absence of the project,
(ii) the determinants of return to work, including the
characteristics of the beneficiaries who participate in the
project, and
(iii) the employment outcomes, including wages,
occupations, benefits, and hours worked, of beneficiaries who
return to work as a result of participation in the project.
(3) Waivers.--The Commissioner may waive compliance with
the benefit requirements of title II of the Social Security
Act, and the Secretary of Health and Human Services may waive
compliance with the benefit requirements of title XVIII of
such Act, in so far as is necessary for a thorough evaluation
of the alternative methods under consideration. No such
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 projects shall be submitted
by the Commissioner to such committees. When appropriate,
such reports shall include detailed recommendations for
changes in administration or law, or both, to carry out the
objectives stated in paragraph (1).
(4) Interim reports.--On or before June 9 in 2000 and each
of the succeeding years thereafter, the Commissioner shall
submit to the Congress an interim report on the progress of
the experiments and demonstration projects carried out under
this subsection together with any related data and materials
which the Commissioner may consider appropriate.
(5) Final report.--The Commissioner shall submit to the
Congress a final report with respect to all experiments and
demonstration projects carried out under this section no
later than one year after their completion.
(6) Expenditures.--Expenditures made for demonstration
projects under this subsection shall be made from the Federal
Disability Insurance Trust Fund and the Federal Old-Age and
Survivors Insurance Trust Fund, as determined appropriate by
the Commissioner, and from the Federal Hospital Insurance
Trust Fund and the Federal Supplementary Medical Insurance
Trust Fund, as determined appropriate by the Secretary of
Health and Human Services, to the extent provided in advance
in appropriation Acts.

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

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

SEC. 4. CREDIT FOR IMPAIRMENT-RELATED WORK EXPENSES OF
HANDICAPPED INDIVIDUALS.

(a) In General.--Subpart A of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 (relating to
nonrefundable personal credits) is amended by inserting after
section 25A the following new section:

``SEC. 25B. IMPAIRMENT-RELATED WORK EXPENSES OF HANDICAPPED
INDIVIDUALS.

``(a) Allowance of Credit.--In the case of a handicapped
individual, there shall be allowed as a credit against the
tax imposed by this chapter for the taxable year an amount
equal to 50 percent of the impairment-related work expenses
which are paid or incurred by the taxpayer during the taxable
year.
``(b) Maximum Credit.--The credit allowed by subsection (a)
with respect to the expenses of each handicapped individual
shall not exceed $5,000 for the taxable year.
``(c) Definitions.--For purposes of this section--
``(1) Handicapped individual.--The term `handicapped
individual' has the meaning given such term by section
190(b)(3).
``(2) Impairment-related work expenses.--The term
`impairment-related work expenses' means expenses--
``(A) of a handicapped individual for attendant care
services at the individual's place of employment and other
expenses in connection with such place of employment which
are necessary for such individual to be able to work, and
``(B) with respect to which a deduction is allowable under
section 162 (determined without regard to this section).
``(d) Special Rules.--
``(1) Denial of double benefit.--The amount of impairment-
related work expenses which is allowable as a deduction under
section 162 (determined without regard to this paragraph) for
the taxable year shall be reduced by the amount of credit
allowed under this section for such year.
``(2) Election to have section not apply.--No credit shall
be allowed under subsection (a) for the taxable year if the
taxpayer elects to not have this section apply for such
year.''
(b) Clerical Amendment.--The table of sections for such
subpart A is amended by inserting after the item relating to
section 25A the following new item:

``Sec. 25B. Impairment-related work expenses of handicapped
individuals.''
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
1997.

The SPEAKER pro tempore. Pursuant to House Resolution 450 the
amendment printed in the bill, modified by the amendment printed in
House Report 105-553, is adopted.
The text of H.R. 3433, as amended pursuant to House Resolution 450,
is as follows:

H.R. 3433

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

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

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

[[Page H4012]]

SEC. 2. THE TICKET TO WORK AND SELF-SUFFICIENCY PROGRAM.

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

``the ticket to work and self-sufficiency program

``(I) reimbursement for costs incurred in providing
services described in subparagraph (A) to the disabled
beneficiary, and
``(II) other amounts from payments made by the Commissioner
to the employment network pursuant to subsection (h), and

``(ii) any other conditions that may be required by such
regulations.
``(C) Regulations.--The Commissioner of Social Security and
the Secretary of Education shall jointly prescribe
regulations specifying the terms of agreements required by
subparagraph (A) and otherwise necessary to carry out the
provisions of this paragraph.
``(D) Penalty.--No payment may be made to an employment
network pursuant to subsection (h) in connection with
services provided to any disabled beneficiary if such
employment network makes referrals described in subparagraph
(A) in violation of the terms of the contract required under
subparagraph (A) or without having entered into such a
contract.
``(d) Responsibilities of the Commissioner of Social
Security.--
``(1) Selection and qualifications of program managers.--
The Commissioner of Social Security shall enter into
agreements with one or more organizations in the private or
public sector for service as a program manager to assist the
Commissioner in administering the Program. Any such program
manager shall be selected by means of a competitive bidding
process, from among organizations in the private or public
sector with available expertise and experience in the field
of vocational rehabilitation or employment services.
``(2) Tenure, renewal, and early termination.--Each
agreement entered into under paragraph (1) shall provide for
early termination upon failure to meet performance standards
which shall be specified in the agreement and which shall be
weighted to take into account any performance in prior terms.
Such performance standards shall include (but are not limited
to)--
``(A) measures for ease of access by beneficiaries to
services, and
``(B) measures for determining the extent to which failures
in obtaining services for beneficiaries fall within
acceptable parameters, as determined by the Commissioner.
``(3) Preclusion from direct participation in delivery of
services in own service area.--Agreements under paragraph (1)
shall preclude--
``(A) direct participation by a program manager in the
delivery of employment services, vocational rehabilitation
services, or other support services to beneficiaries in the
service area covered by the program manager's agreement, and
``(B) the holding by a program manager of a financial
interest in an employment network or service provider which
provides services in a geographic area covered under the
program manager's agreement.
``(4) Selection of employment networks.--The Commissioner
shall select and enter into agreements with employment
networks for service under the Program. Such employment
networks shall be in addition to State agencies serving as
employment networks pursuant to elections under subsection
(c).
``(5) Termination of agreements with employment networks.--
The Commissioner shall terminate agreements with employment
networks for inadequate performance, as determined by the
Commissioner.
``(6) Quality assurance.--The Commissioner shall provide
for such periodic reviews as are necessary to provide for
effective quality assurance in the provision of services by
employment networks. The Commissioner shall take into account
the views of consumers and the program manager under which
the employment networks serve and shall consult with
providers of services to develop performance measurements.
The Commissioner shall ensure that the results of the
periodic reviews are made available to beneficiaries who are
prospective service recipients as they select employment
networks. The Commissioner shall ensure the performance of
periodic surveys of beneficiaries receiving services under
the Program designed to measure customer service
satisfaction.
``(7) Dispute resolution.--The Commissioner shall provide
for a mechanism for resolving disputes between beneficiaries
and employment networks and between program managers and
employment networks. The Commissioner shall afford a party to
such a dispute a reasonable opportunity for a full and fair
review of the matter in dispute.
``(e) Program Managers.--
``(1) In general.--A program manager shall conduct tasks
appropriate to assist the Commissioner in carrying out the
Commissioner's duties in administering the Program.
``(2) Recruitment of employment networks.--A program
manager shall recruit, and recommend for selection by the
Commissioner, employment networks for service under the
Program. The program manager shall carry out such recruitment
and provide such recommendations, and shall monitor all
employment networks serving in the Program in the geographic
area covered under the program manager's agreement, to the
extent necessary and appropriate to ensure that adequate
choices of services are made available to beneficiaries.
Employment networks may serve under the Program only pursuant
to an agreement entered into with the Commissioner under the
Program incorporating the applicable provisions of this
section and regulations thereunder, and the program manager
shall provide and maintain assurances to the Commissioner
that payment by the Commissioner to employment networks
pursuant to this section is warranted based on compliance by
such employment networks with the terms of such agreement and
this section. The program manager shall not impose numerical
limits on the number of employment networks to be recommended
pursuant to this paragraph.
``(3) Facilitation of access by beneficiaries to employment
networks.--A program manager shall facilitate access by
beneficiaries to employment networks. The program manager
shall ensure that each beneficiary is allowed changes in
employment networks for good cause, as determined by the
Commissioner, without being deemed to have rejected services
under the Program. The program manager shall establish and
maintain lists of employment networks available to
beneficiaries and shall make such lists generally available
to the public. The program manager shall ensure that all
information provided to disabled beneficiaries pursuant to
this paragraph is provided in accessible format.
``(4) Ensuring availability of adequate services.--The
program manager shall ensure

[[Page H4013]]

that employment services, vocational rehabilitation services,
and other support services are provided to beneficiaries
throughout the geographic area covered under the program
manager's agreement, including rural areas.
``(5) Reasonable access to services.--The program manager
shall take such measures as are necessary to ensure that
sufficient employment networks are available and that each
beneficiary receiving services under the Program has
reasonable access to employment services, vocational
rehabilitation services, and other support services. Such
services may include case management, benefits counseling,
supported employment, career planning, career plan
development, vocational assessment, job training, placement,
follow-up services, and such other services as may be
specified by the Commissioner under the Program. The program
manager shall ensure that such services are coordinated.
``(f) Employment Networks.--
``(1) Qualifications for employment networks.--Each
employment network serving under the Program shall consist of
an agency or instrumentality of a State (or a political
subdivision thereof) or a private entity, which assumes
responsibility for the coordination and delivery of services
under the Program to individuals assigning to the employment
network tickets to work and self-sufficiency issued under
subsection (b). No employment network may serve under the
Program unless it demonstrates to the Commissioner
substantial expertise and experience in the field of
employment services, vocational rehabilitation services, or
other support services for individuals with disabilities and
provides an array of such services. An employment network
shall consist of either a single provider of such services or
of an association of such providers organized so as to
combine their resources into a single entity. An employment
network may meet the requirements of subsection (e)(4) by
providing services directly, or by entering into agreements
with other individuals or entities providing appropriate
employment services, vocational rehabilitation services, or
other support services.
``(2) Requirements relating to provision of services.--Each
employment network serving under the Program shall be
required under the terms of its agreement with the
Commissioner to--
``(A) serve prescribed service areas,
``(B) meet, and maintain compliance with, both general
selection criteria (such as professional and governmental
certification and educational credentials) and specific
selection criteria (such as the extent of work experience by
the provider with specific populations), and
``(C) take such measures as are necessary to ensure that
employment services, vocational rehabilitation services, and
other support services provided under the Program by, or
under agreements entered into with, the employment network
are provided under appropriate individual work plans meeting
the requirements of subsection (g).
``(3) Annual financial reporting.--Each employment network
shall meet financial reporting requirements as prescribed by
the Commissioner.
``(4) Periodic outcomes reporting.--Each employment network
shall prepare periodic reports, on at least an annual basis,
itemizing for the covered period specific outcomes achieved
with respect to specific services provided by the employment
network. Such reports shall conform to a national model
prescribed under this section. Each employment network shall
provide a copy of the latest report issued by the employment
network pursuant to this paragraph to each beneficiary upon
enrollment under the Program for services to be received
through such employment network. Upon issuance of each report
to each beneficiary, a copy of the report shall be maintained
in the files of the employment network pertaining to the
beneficiary. The program manager shall ensure that copies of
all such reports issued under this paragraph are made
available to the public under reasonable terms.
``(g) Individual Work Plans.--
``(1) In general.--Each employment network shall--
``(A) take such measures as are necessary to ensure that
employment services, vocational rehabilitation services, and
other support services provided under the Program by, or
under agreements entered into with, the employment network
are provided under appropriate individual work plans as
defined by the Commissioner, and
``(B) develop and implement each such individual work plan,
in the case of each beneficiary receiving such services, in a
manner that affords such beneficiary the opportunity to
exercise informed choice in selecting an employment goal and
specific services needed to achieve that employment goal.

A beneficiary's individual work plan shall take effect upon
approval by the beneficiary.
``(2) Vocational evaluation.--In devising the work plan,
the employment network shall undertake a vocational
evaluation with respect to the beneficiary. Each vocational
evaluation shall set forth in writing such elements and shall
be in such format as the Commissioner shall prescribe. The
Commissioner may provide for waiver by the beneficiary of
such a vocational evaluation, subject to regulations which
shall be prescribed by the Commissioner providing for the
permissible timing of, and the circumstances permitting, such
a waiver.
``(h) Employment Network Payment Systems.--
``(1) Election of payment system by employment networks.--
``(A) In general.--The Program shall provide for payment
authorized by the Commissioner to employment networks under
either an outcome payment system or an outcome-milestone
payment system. Each employment network shall elect which
payment system will be utilized by the employment network,
and, for such period of time as such election remains in
effect, the payment system so elected shall be utilized
exclusively in connection with such employment network
(except as provided in subparagraph (B)).
``(B) Method of payment to employment networks.--Any such
election by an employment network taking effect during any
period for which a disabled beneficiary is receiving services
from such employment network shall not be effective with
respect to such beneficiary to the extent that such election
would result in any change in the method of payment to the
employment network with respect to services provided to such
beneficiary from the method of payment to the employment
network with respect to services provided to such beneficiary
as of immediately before such election.
``(2) Outcome payment system.--
``(A) In general.--The outcome payment system shall consist
of a payment structure governing employment networks electing
such system under paragraph (1)(A) which meets the
requirements of this paragraph.
``(B) Payments made during outcome payment period.--The
outcome payment system shall provide for a schedule of
payments to an employment network, in connection with each
individual who is a beneficiary, for each month, during the
individual's outcome payment period, for which benefits
(described in paragraphs (2) and (3) of subsection (k)) are
not payable to such individual.
``(C) Computation of payments to employment network.--The
payment schedule of the outcome payment system shall be
designed so that--
``(i) the payment for each of the 60 months during the
outcome payment period for which benefits (described in
paragraphs (2) and (3) of subsection (k)) are not payable is
equal to a fixed percentage of the payment calculation base
for the calendar year in which such month occurs, and
``(ii) such fixed percentage is set at a percentage which
does not exceed 40 percent.
``(3) Outcome-milestone payment system.--
``(A) In general.--The outcome-milestone payment system
shall consist of a payment structure governing employment
networks electing such system under paragraph (1)(A) which
meets the requirements of this paragraph.
``(B) Early payments upon attainment of milestones in
advance of outcome payment periods.--The outcome-milestone
payment system shall provide for one or more milestones, with
respect to beneficiaries receiving services from an
employment network under the Program, which are directed
toward the goal of permanent employment. Such milestones
shall form a part of a payment structure which provides, in
addition to payments made during outcome payment periods,
payments made prior to outcome payment periods in amounts
based on the attainment of such milestones.
``(C) Limitation on total payments to employment network.--
The payment schedule of the outcome milestone payment system
shall be designed so that the total of the payments to the
employment network with respect to each beneficiary is less
than, on a net present value basis (using an interest rate
determined by the Commissioner that appropriately reflects
the cost of funds faced by providers), the total amount to
which payments to the employment network with respect to the
beneficiary would be limited if the employment network were
paid under the outcome payment system.
``(4) Definitions.--For purposes of this subsection--
``(A) Payment calculation base.--The term `payment
calculation base' means, for any calendar year--
``(i) in connection with a title II disability beneficiary,
the average disability insurance benefit payable under
section 223 for all beneficiaries for months during the
preceding calendar year, and
``(ii) in connection with a title XVI disability
beneficiary (who is not concurrently a title II disability
beneficiary), the average payment of supplemental security
income benefits based on disability payable under title XVI
(excluding State supplementation) for months during the
preceding calendar year to all beneficiaries who have
attained at least 18 years of age.
``(B) Outcome payment period.--The term `outcome payment
period' means, in connection with any individual who had
assigned a ticket to work and self-sufficiency to an
employment network under the Program, a period--
``(i) beginning with the first month, ending after the date
on which such ticket was assigned to the employment network,
for which benefits (described in paragraphs (2) and (3) of
subsection (k)) are not payable to such individual by reason
of engagement in work activity, and
``(ii) ending with the 60th month (consecutive or
otherwise), ending after such date, for which such benefits
are not payable to such individual by reason of engagement in
work activity.
``(5) Periodic review and alterations of prescribed
schedules.--
``(A) Percentages and periods.--The Commissioner of Social
Security shall periodically review the percentage specified
in paragraph (2)(C), the total payments permissible under
paragraph (3)(C), and the period of time specified in
paragraph (4)(B) to determine whether such percentages, such
permissible payments, and such period provide an adequate
incentive for employment networks to assist beneficiaries to
enter the workforce, while providing for appropriate
economies. The Commissioner may alter such percentage, such
total permissible payments, or such period of time to the
extent that the Commissioner determines, on the basis of the
Commissioner's review under this paragraph, that such an
alteration would better provide the incentive and economies
described in the preceding sentence.

[[Page H4014]]

``(B) Number and amount of milestone payments.--The
Commissioner shall periodically review the number and amounts
of milestone payments established by the Commissioner
pursuant to this section to determine whether they provide an
adequate incentive for employment networks to assist
beneficiaries to enter the workforce, taking into account
information provided to the Commissioner by program managers,
the Ticket to Work and Self-Sufficiency Advisory Panel, and
other reliable sources. The Commissioner may from time to
time alter the number and amounts of milestone payments
initially established by the Commissioner pursuant to this
section to the extent that the Commissioner determines that
such an alteration would allow an adequate incentive for
employment networks to assist beneficiaries to enter the
workforce. Such alteration shall be based on information
provided to the Commissioner by program managers, the Ticket
to Work and Self-Sufficiency Advisory Panel, or other
reliable sources.
``(i) Suspension of Disability Reviews.--During any period
for which an individual is using a ticket to work and self-
sufficiency issued under this section, the Commissioner (and
any applicable State agency) may not initiate a continuing
disability review or other review under section 221 of
whether the individual is or is not under a disability or a
review under title XVI similar to any such review under
section 221.
``(j) Authorizations.--
``(1) Title ii disability beneficiaries.--There are
authorized to be transferred from the Federal Old-Age and
Survivors Insurance Trust Fund and the Federal Disability
Insurance Trust Fund each fiscal year such sums as may be
necessary to carry out the provisions of this section with
respect to title II disability beneficiaries. Money paid from
the Trust Funds under this section with respect to title II
disability beneficiaries who are entitled to benefits under
section 223 or who are entitled to benefits under section
202(d) on the basis of the wages and self-employment income
of such beneficiaries, shall be charged to the Federal
Disability Insurance Trust Fund, and all other money paid
from the Trust Funds under this section shall be charged to
the Federal Old-Age and Survivors Insurance Trust Fund. The
Commissioner of Social Security shall determine according to
such methods and procedures as shall be prescribed under this
section--
``(A) the total amount to be paid to program managers and
employment networks under this section, and
``(B) subject to the provisions of the preceding sentence,
the amount which should be charged to each of the Trust
Funds.
``(2) Title xvi disability beneficiaries.--Amounts
authorized to be appropriated to the Social Security
Administration under section 1601 (as in effect pursuant to
the amendments made by section 301 of the Social Security
Amendments of 1972) shall include amounts necessary to carry
out the provisions of this section with respect to title XVI
disability beneficiaries.
``(k) Definitions.--For purposes of this section--
``(1) Disabled beneficiary.--The term `disabled
beneficiary' means a title II disability beneficiary or a
title XVI disability beneficiary.
``(2) Title ii disability beneficiary.--The term `title II
disability beneficiary' means an individual entitled to
disability insurance benefits under section 223 or to monthly
insurance benefits under section 202 based on such
individual's disability (as defined in section 223(d)). An
individual is a title II disability beneficiary for each
month for which such individual is entitled to such benefits.
``(3) Title xvi disability beneficiary.--The term `title
XVI disability beneficiary' means an individual eligible for
supplemental security income benefits under title XVI on the
basis of blindness (within the meaning of section 1614(a)(2))
or disability (within the meaning of section 1614(a)(3)). An
individual is a title XVI disability beneficiary for each
month for which such individual is eligible for such
benefits.
``(4) Supplemental security income benefit.--The term
`supplemental security income benefit under title XVI' means
a cash benefit under section 1611 or 1619(a), and does not
include a State supplementary payment, administered federally
or otherwise.
``(l) Regulations.--The Commissioner of Social Security
shall prescribe such regulations as are necessary to carry
out the provisions of this section.''.
(b) Conforming Amendments.--
(1) Amendments to title ii.--
(A) Section 221(c) of such Act (42 U.S.C. 421(c)) is
amended by adding at the end the following new paragraph:
``(4) For suspension of reviews under this subsection in
the case of an individual using a ticket to work and self-
sufficiency, see section 1147(i).''.
(B) Section 222(a) of such Act (42 U.S.C. 422(a)) is
repealed.
(C) Section 222(b) of such Act (42 U.S.C. 422(b)) is
repealed.
(D) Section 225(b)(1) of such Act (42 U.S.C. 425(b)(1)) is
amended by striking ``a program of vocational rehabilitation
services'' and inserting ``a program consisting of the Ticket
to Work and Self-Sufficiency Program under section 1147 or
another program of vocational rehabilitation services,
employment services, or other support services''.
(2) Amendments to title xvi.--
(A) Section 1615(a) of such Act (42 U.S.C. 1382d(a)) is
amended to read as follows:
``Sec. 1615. (a) In the case of any blind or disabled
individual who--
``(1) has not attained age 16, and
``(2) with respect to whom benefits are paid under this
title,

the Commissioner of Social Security shall make provision for
referral of such individual to the appropriate State agency
administering the State program under title V.''.
(B) Section 1615(c) of such Act (42 U.S.C. 1382d(c)) is
repealed.
(C) Section 1631(a)(6)(A) of such Act (42 U.S.C.
1383(a)(6)(A)) is amended by striking ``a program of
vocational rehabilitation services'' and inserting ``a
program consisting of the Ticket to Work and Self-Sufficiency
Program under section 1147 or another program of vocational
rehabilitation services, employment services, or other
support services''.
(D) Section 1633(c) of such Act (42 U.S.C. 1383b(c)) is
amended--
(i) by inserting ``(1)'' after ``(c)''; and
(ii) by adding at the end the following new paragraph:
``(2) For suspension of continuing disability reviews and
other reviews under this title similar to reviews under
section 221 in the case of an individual using a ticket to
work and self-sufficiency, see section 1147(i).''.
(c) Effective Date.--Subject to subsection (d), the
amendments made by subsections (a) and (b) shall take effect
with the first month following one year after the date of the
enactment of this Act.
(d) Graduated Implementation of Program.--
(1) In general.--Not later than one year after the date of
the enactment of this Act, the Commissioner of Social
Security shall commence implementation of the amendments made
by this section (other than paragraphs (1)(C) and (2)(B) of
subsection (b)) in graduated phases at phase-in sites
selected by the Commissioner. Such phase-in sites shall be
selected so as to ensure, prior to full implementation of the
Ticket to Work and Self-Sufficiency Program, the development
and refinement of referral processes, payment systems,
computer linkages, management information systems, and
administrative processes necessary to provide for full
implementation of such amendments. Subsection (c) shall apply
with respect to paragraphs (1)(C) and (2)(B) of subsection
(b) without regard to this subsection.
(2) Requirements.--Implementation of the Program at each
phase-in site shall be carried out on a wide enough scale to
permit a thorough evaluation of the alternative methods under
consideration, so as to ensure that the most efficacious
methods are determined and in place for full implementation
of the Program on a timely basis.
(3) Full implementation.--The Commissioner shall ensure
that the Program is fully implemented as soon as practicable
on or after the effective date specified in subsection (c)
but not later than six years after such date.
(4) Ongoing evaluation of program.--
(A) In general.--The Commissioner shall design and conduct
a series of evaluations to assess the cost-effectiveness of
activities carried out under this section and the amendments
made thereby, as well as the effects of this section and the
amendments made thereby on work outcomes for beneficiaries
receiving tickets to work and self-sufficiency under the
Program.
(B) Methodology.--
(i) Design and implementation.--The Commissioner shall
design the series of evaluations after receiving relevant
advice from experts in the fields of disability, vocational
rehabilitation, and program evaluation and individuals using
tickets to work and self-sufficiency under the Program. In
designing and carrying out such evaluations, the Commissioner
shall consult with the Comptroller General of the United
States and other agencies of the Federal Government and with
private organizations with appropriate expertise. Before
provision of services begins under any phase of Program
implementation, the Commissioner shall ensure that plans for
such evaluations and data collection methods are in place and
ready for implementation.
(ii) Specific matters to be addressed.--Each such
evaluation shall address (but is not limited to):

(I) the annual cost (including net cost) of the Program and
the annual cost (including net cost) that would have been
incurred in the absence of the Program;
(II) the determinants of return to work, including the
characteristics of beneficiaries in receipt of tickets under
the Program;
(III) the types of employment services, vocational
rehabilitation services, and other support services furnished
to beneficiaries in receipt of tickets under the Program who
return to work and to those who do not return to work;
(IV) the duration of employment services, vocational
rehabilitation services, and other support services furnished
to beneficiaries in receipt of tickets under the Program who
return to work and the duration of such services furnished to
those who do not return to work and the cost to employment
networks of furnishing such services;
(V) the employment outcomes, including wages, occupations,
benefits, and hours worked, of beneficiaries who return to
work after receiving tickets under the Program and those who
return to work without receiving such tickets;
(VI) the characteristics of providers whose services are
provided within an employment network under the Program;
(VII) the extent (if any) to which employment networks
display a greater willingness to provide services to disabled
beneficiaries;
(VIII) the characteristics (including employment outcomes)
of those beneficiaries who receive services under the outcome
payment system and of those beneficiaries who receive
services under the outcome-milestone payment system;
(IX) measures of satisfaction among beneficiaries in
receipt of tickets under the Program; and
(X) reasons for (including comments solicited from
beneficiaries regarding) their choice not to

[[Page H4015]]

use their tickets or their inability to return to work
despite the use of thier tickets.

(C) Periodic evaluation reports.--Following the close of
the third and fifth fiscal years ending after the effective
date under subsection (c), and prior to the close of the
seventh fiscal year ending after such date, the Commissioner
shall transmit to the Committee on Ways and Means of the
House of Representatives and the Committee on Finance of the
Senate a report containing the Commissioner's evaluation of
the progress of activities conducted under the provisions of
this section and the amendments made thereby. Each such
report shall set forth the Commissioner's evaluation of the
extent to which the Program has been successful and the
Commissioner's conclusions on whether or how the Program
should be modified. Each such report shall include such data,
findings, materials, and recommendations as the Commissioner
may consider appropriate.
(5) Extent of state's right of first refusal in advance of
full implementation of amendments in such state.--
(A) In general.--In the case of any State in which the
amendments made by subsection (a) have not been fully
implemented pursuant to this subsection, the Commissioner
shall determine by regulation the extent to which--
(i) the requirement under section 222(a) of the Social
Security Act for prompt referrals to a State agency, and
(ii) the authority of the Commissioner under section
222(d)(2) of such Act to provide vocational rehabilitation
services in such State by agreement or contract with other
public or private agencies, organizations, institutions, or
individuals,
shall apply in such State.
(B) Existing agreements.--Nothing in subparagraph (A) or
the amendments made by subsection (a) shall be construed to
limit, impede, or otherwise affect any agreement entered into
pursuant to section 222(d)(2) of the Social Security Act
before the date of the enactment of this Act with respect to
services provided pursuant to such agreement to beneficiaries
receiving services under such agreement as of such date,
except with respect to services (if any) to be provided after
six years after the effective date provided in subsection
(c).
(e) The Ticket to Work and Self-Sufficiency Advisory
Panel.--
(1) Establishment.--There is established in the executive
branch a panel to be known as the ``Ticket to Work and Self-
Sufficiency Advisory Panel'' (in this subsection referred to
as the ``Panel'').
(2) Duties of panel.--It shall be the duty of the Panel
to--
(A) advise the Commissioner of Social Security on
establishing phase-in sites for the Ticket to Work and Self-
Sufficiency Program and on fully implementing the Program
thereafter,
(B) advise the Commissioner with respect to the refinement
of access of disabled beneficiaries to employment networks,
payment systems, and management information systems and
advise the Commissioner whether such measures are being taken
to the extent necessary to ensure the success of the Program,
(C) advise the Commissioner regarding the most effective
designs for research and demonstration projects associated
with the Program or conducted pursuant to subsection (h),
(D) advise the Commissioner on the development of
performance measurements relating to quality assurance under
section 1147(d)(6) of the Social Security Act, and
(E) furnish progress reports on the Program to the
President and each House of the Congress.
(3) Membership.--
(A) Number and appointment.--The Panel shall be composed of
6 members as follows:
(i) 1 member appointed by the Chairman of the Committee on
Ways and Means of the House of Representatives;
(ii) 1 member appointed by the ranking minority member of
the Committee on Ways and Means of the House of
Representatives;
(iii) 1 member appointed by the Chairman of the Committee
on Finance of the Senate;
(iv) 1 member appointed by the ranking minority member of
the Committee on Finance of the Senate; and
(v) 2 members appointed by the President, who may not be of
the same political party.
(B) Representation.--Of the members appointed under
subparagraph (A), at least 4 shall have experience or expert
knowledge as a recipient, provider, employer, or employee in
the fields of, or related to, employment services, vocational
rehabilitation services, and other support services, of
whom--
(i) at least one shall represent the interests of
recipients of employment services, vocational rehabilitation
services, and other support services,
(ii) at least one shall represent the interests of
providers of employment services, vocational rehabilitation
services, and other support services,
(iii) at least one shall represent the interests of private
employers,
(iv) at least one shall represent the interests of
employees, and
(v) at least one shall be an individual who is or has been
a recipient of benefits under title II or title XVI based on
disability.
(C) Terms.--
(i) In general.--Each member shall be appointed for a term
of 4 years (or, if less, for the remaining life of the
Panel), except as provided in clauses (ii) and (iii). The
initial members shall be appointed not later than 90 days
after the date of the enactment of this Act.
(ii) Terms of initial appointees.--As designated by the
President at the time of appointment, of the members first
appointed--

(I) 3 of the members appointed under subparagraph (A) shall
be appointed for a term of 2 years, and
(II) 3 of the members appointed under subparagraph (A)
shall be appointed for a term of 4 years.

(iii) Vacancies.--Any member appointed to fill a vacancy
occurring before the expiration of the term for which the
member's predecessor was appointed shall be appointed only
for the remainder of that term. A member may serve after the
expiration of that member's term until a successor has taken
office. A vacancy in the Panel shall be filled in the manner
in which the original appointment was made.
(D) Basic pay.--Members shall each be paid at a rate equal
to the daily equivalent of the rate of basic pay for level 4
of the Senior Executive Service, as in effect from time to
time under section 5382 of title 5, United States Code, for
each day (including travel time) during which they are
engaged in the actual performance of duties vested in the
Panel.
(E) Travel expenses.--Each member shall receive travel
expenses, including per diem in lieu of subsistence, in
accordance with sections 5702 and 5703 of title 5, United
States Code.
(F) Quorum.--4 members of the Panel shall constitute a
quorum but a lesser number may hold hearings.
(G) Chairperson.--The Chairperson of the Panel shall be
designated by the President. The term of office of the
Chairperson shall be 4 years.
(H) Meetings.--The Panel shall meet at least quarterly and
at other times at the call of the Chairperson or a majority
of its members.
(4) Director and staff of panel; experts and consultants.--
(A) Director.--The Panel shall have a Director who shall be
appointed by the Panel. The Director shall be paid at a rate
not to exceed the maximum rate of pay payable for GS-15 of
the General Schedule.
(B) Staff.--Subject to rules prescribed by the Panel, the
Director may appoint and fix the pay of additional personnel
as the Director considers appropriate.
(C) Experts and consultants.--Subject to rules prescribed
by the Panel, the Director may procure temporary and
intermittent services under section 3109(b) of title 5,
United States Code.
(D) Staff of federal agencies.--Upon request of the Panel,
the head of any Federal department or agency may detail, on a
reimbursable basis, any of the personnel of that department
or agency to the Panel to assist it in carrying out its
duties under this Act.
(5) Powers of panel.--
(A) Hearings and sessions.--The Panel may, for the purpose
of carrying out its duties under this subsection, hold such
hearings, sit and act at such times and places, and take such
testimony and evidence as the Panel considers appropriate.
(B) Powers of members and agents.--Any member or agent of
the Panel may, if authorized by the Panel, take any action
which the Panel is authorized to take by this section.
(C) Mails.--The Panel may use the United States mails in
the same manner and under the same conditions as other
departments and agencies of the United States.
(D) Administrative support services.--Upon the request of
the Panel, the Administrator of General Services shall
provide to the Panel, on a reimbursable basis, the
administrative support services necessary for the Panel to
carry out its duties under this subsection.
(6) Reports.--
(A) Interim reports.--The Panel shall submit to the
President and the Congress interim reports at least annually.
(B) Final report.--The Panel shall transmit a final report
to the President and the Congress not later than eight years
after the date of the enactment of this Act. The final report
shall contain a detailed statement of the findings and
conclusions of the Panel, together with its recommendations
for legislation and administrative actions which the Panel
considers appropriate.
(7) Termination.--The Panel shall terminate 30 days after
the date of the submission of its final report under
paragraph (6)(B).
(8) Authorization of appropriations.--There are authorized
to be appropriated from the Federal Old-Age and Survivors
Insurance Trust Fund, the Federal Disability Insurance Trust
Fund, and the general fund of the Treasury, as appropriate,
such sums as are necessary to carry out this subsection.
(f) Specific Regulations Required.--
(1) In general.--The Commissioner of Social Security shall
prescribe such regulations as are necessary to implement the
amendments made by this section.
(2) Specific matters to be included in regulations.--The
matters which shall be addressed in such regulations shall
include (but are not limited to)--
(A) the form and manner in which tickets to work and self-
sufficiency may be distributed to beneficiaries pursuant to
section 1147(b)(1) of such Act;
(B) the format and wording of such tickets, which shall
incorporate by reference any contractual terms governing
service by employment networks under the Program;
(C) the form and manner in which State agencies may elect
participation in the Ticket to Work and Self-Sufficiency
Program (and revoke such an election) pursuant to section
1147(c)(1) of such Act and provision for periodic
opportunities for exercising such elections (and
revocations);
(D) the status of State agencies under section 1147(c)(2)
at the time that State agencies exercise elections (and
revocations) under such section 1147(c)(1);
(E) the terms of agreements to be entered into with program
managers pursuant to section 1147(d) of such Act, including
(but not limited to)--
(i) the terms by which program managers are precluded from
direct participation in the delivery of services pursuant to
section 1147(d)(3) of such Act,
(ii) standards which must be met by quality assurance
measures referred to in paragraph (6)

[[Page H4016]]

of section 1147(d) and methods of recruitment of employment
networks utilized pursuant to paragraph (2) of section
1147(e), and
(iii) the format under which dispute resolution will
operate under section 1147(d)(7).
(F) the terms of agreements to be entered into with
employment networks pursuant to section 1147(d)(4) of such
Act, including (but not limited to)--
(i) the manner in which service areas are specified
pursuant to section 1147(f)(2)(A) of such Act,
(ii) the general selection criteria and the specific
selection criteria which are applicable to employment
networks under section 1147(f)(2)(B) of such Act in selecting
service providers,
(iii) specific requirements relating to annual financial
reporting by employment networks pursuant to section
1147(f)(3) of such Act, and
(iv) the national model to which periodic outcomes
reporting by employment networks must conform under section
1147(f)(4) of such Act;
(G) standards which must be met by individual work plans
pursuant to section 1147(g) of such Act;
(H) standards which must be met by payment systems required
under section 1147(h) of such Act, including (but not limited
to)--
(i) the form and manner in which elections by employment
networks of payment systems are to be exercised pursuant to
section 1147(h)(1)(A),
(ii) the terms which must be met by an outcome payment
system under section 1147(h)(2);
(iii) the terms which must be met by an outcome-milestone
payment system under section 1147(h)(3);
(iv) any revision of the percentage specified in paragraph
(2)(C) of section 1147(h) of such Act or the period of time
specified in paragraph (4)(B) of such section 1147(h); and
(v) annual oversight procedures for such systems; and
(I) procedures for effective oversight of the Program by
the Commissioner of Social Security, including periodic
reviews and reporting requirements.
(g) Work Incentive Specialists.--The Commissioner shall
establish a corps of trained, accessible, and responsive work
incentive specialists to specialize in title II and title XVI
disability work incentives for the purpose of disseminating
accurate information to disabled beneficiaries (as defined in
section 1147(k)(1) of the Social Security Act as amended by
this Act) with respect to inquiries and issues relating to
work incentives.
(h) Demonstration Projects Providing for Reductions in
Disability Insurance Benefits Based on Earnings. --
(1) Authority.--The Commissioner shall conduct
demonstration projects for the purpose of evaluating, through
the collection of data, a program for title II disability
beneficiaries (as defined in section 1147(k)(2) of the Social
Security Act, as amended by this Act) under which each $1 of
benefits payable under section 223, or under section 202
based on the beneficiary's disability, is reduced for each $2
of such beneficiary's earnings that is above a level to be
determined by the Commissioner. Such projects shall be
conducted at a number of localities which the Commissioner
shall determine is sufficient to adequately evaluate the
appropriateness of national implementation of such a program.
Such projects shall identify reductions in Federal
expenditures that may result from the permanent
implementation of such a program.
(2) Scope and scale and matters to be determined.--
(A) In general.--The demonstration projects developed under
paragraph (1) shall be of sufficient duration, shall be of
sufficient scope, and shall be carried out on a wide enough
scale to permit a thorough evaluation of the project to
determine--
(i) the effects, if any, of induced entry and reduced exit,
(ii) the extent, if any, to which the project being tested
is affected by whether it is in operation in a locality
within an area under the administration of the Ticket to Work
and Self-Sufficiency Program, and
(iii) the savings that accrue to the Trust Funds and other
Federal programs under the project being tested.

The Commissioner shall take into account advice provided by
the Ticket to Work and Self-Sufficiency Advisory Panel
pursuant to subsection (e)(2)(C).
(B) Additional matters.--The Commissioner shall also
determine with respect to each project--
(i) the annual cost (including net cost) of the project and
the annual cost (including net cost) that would have been
incurred in the absence of the project,
(ii) the determinants of return to work, including the
characteristics of the beneficiaries who participate in the
project, and
(iii) the employment outcomes, including wages,
occupations, benefits, and hours worked, of beneficiaries who
return to work as a result of participation in the project.

The Commissioner may include within the matters evaluated
under the project the merits of trial work periods and
periods of extended eligibility.
(3) Waivers.--The Commissioner may waive compliance with
the benefit provisions of title II of the Social Security
Act, and the Secretary of Health and Human Services may waive
compliance with the benefit requirements of title XVIII of
such Act, in so far as is necessary for a thorough evaluation
of the alternative methods under consideration. No such
project shall be actually placed in operation unless at least
90 days prior thereto a written report, prepared for purposes
of notification and information only and containing a full
and complete description thereof, has been transmitted by the
Commissioner to the Committee on Ways and Means of the House
of Representatives and to the Committee on Finance of the
Senate. Periodic reports on the progress of such projects
shall be submitted by the Commissioner to such committees.
When appropriate, such reports shall include detailed
recommendations for changes in administration or law, or
both, to carry out the objectives stated in paragraph (1).
(4) Interim reports.--On or before June 9 in 2000 and each
of the succeeding years thereafter, the Commissioner shall
submit to the Congress an interim report on the progress of
the demonstration projects carried out under this subsection
together with any related data and materials which the
Commissioner may consider appropriate.
(5) Final report.--The Commissioner shall submit to the
Congress a final report with respect to all demonstration
projects carried out under this section no later than one
year after their completion.
(6) Expenditures.--Expenditures made for demonstration
projects under this subsection shall be made from the Federal
Disability Insurance Trust Fund and the Federal Old-Age and
Survivors Insurance Trust Fund, as determined appropriate by
the Commissioner, and from the Federal Hospital Insurance
Trust Fund and the Federal Supplementary Medical Insurance
Trust Fund, as determined appropriate by the Secretary of
Health and Human Services, to the extent provided in advance
in appropriation Acts.
(i) Study by General Accounting Office of Existing
Disability-Related Employment Incentives.--
(1) Study.--As soon as practicable after the date of the
enactment of this Act, the Comptroller General of the United
States shall undertake a study to assess existing tax credits
and other disability-related employment incentives under the
Americans with Disabilities Act of 1990 and other Federal
laws. In such study, the Comptroller General shall
specifically address the extent to which such credits and
other incentives would encourage employers to hire and retain
individuals with disabilities under the Ticket to Work and
Self-Sufficiency Program.
(2) Report.--Not later than 3 years after the date of the
enactment of this Act, the Comptroller General shall transmit
to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate a
written report presenting the results of the Comptroller
General's study conducted pursuant to this subsection,
together with such recommendations for legislative or
administrative changes as the Comptroller General may
determine to be appropriate.
(j) Study by General Accounting Office of Existing
Coordination of the DI and SSI Programs as They Relate to
Individuals Entering or Leaving Concurrent Entitlement.--
(1) Study.--As soon as practicable after the date of the
enactment of this Act, the Comptroller General of the United
States shall undertake a study to evaluate the coordination
under current law of the disability insurance program under
title II of the Social Security Act and the supplemental
security income program under title XVI of such Act, as such
programs relate to individuals entering or leaving concurrent
entitlement under such programs. In such study, the
Comptroller General shall specifically address the
effectiveness of work incentives under such programs with
respect to such individuals and the effectiveness of coverage
of such individuals under titles XVIII and XIX of such Act.
(2) Report.--Not later than 18 months after the date of the
enactment of this Act, the Comptroller General shall transmit
to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate a
written report presenting the results of the Comptroller
General's study conducted pursuant to this subsection,
together with such recommendations for legislative or
administrative changes as the Comptroller General may
determine to be appropriate.

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

SEC. 4. TECHNICAL AMENDMENTS RELATING TO DRUG ADDICTS AND
ALCOHOLICS.

(a) Clarification Relating to the Effective Date of the
Denial of Social Security Disability Benefits to Drug Addicts
and Alcoholics.--Section 105(a)(5) of the Contract with
America Advancement Act of 1996 (Public Law 104-121; 110
Stat. 853) is amended--
(1) in subparagraph (A), by striking ``by the Commissioner
of Social Security'' and ``by the Commissioner''; and
(2) by adding at the end the following new subparagraphs:

[[Page H4017]]

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

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

(a) In General.--Section 505 of the Social Security
Disability Amendments of 1980 (Public Law 96-265; 94 Stat.
473), as amended by section 12101 of the Consolidated Omnibus
Budget Reconciliation Act of 1985 (Public Law 99-272; 100
Stat. 282), section 10103 of the Omnibus Budget
Reconciliation Act of 1989 (Public Law 101-239; 103 Stat.
2472), section 5120(f) of the Omnibus Budget Reconciliation
Act of 1990 (Public Law 101-508; 104 Stat. 1388-282), and
section 315 of the Social Security Independence and Program
Improvements Act of 1994 (Public Law 103-296; 108 Stat.
1531), is further amended--
(1) in paragraph (1) of subsection (a), by adding at the
end the following new sentence: ``The Commissioner may expand
the scope of any such demonstration project to include any
group of applicants for benefits under such program with
impairments which may reasonably be presumed to be disabling
for purposes of such demonstration project, and may limit any
such demonstration project to any such group of applicants,
subject to the terms of such demonstration project which
shall define the extent of any such presumption.'';
(2) in paragraph (3) of subsection (a), by striking ``June
10, 1996'' and inserting ``June 10, 2001'';
(3) in paragraph (4) of subsection (a), by inserting ``and
on or before October 1, 2000,'' after ``1995,''; and
(4) in subsection (c), by striking ``October 1, 1996'' and
inserting ``October 1, 2001''.
(b) Effective Date.--The amendments made by subsection (a)
shall take effect on the date of the enactment of this Act.

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

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

SEC. 7. TREATMENT OF PRISONERS.

(a) Implementation of Prohibition Against Payment of Title
II Benefits to Prisoners.--
(1) In general.--Section 202(x)(3) of the Social Security
Act (42 U.S.C. 402(x)(3)) is amended--
(A) by inserting ``(A)'' after ``(3)''; and
(B) by adding at the end the following new subparagraph:
``(B)(i) The Commissioner shall enter into an agreement
under this subparagraph with any interested State or local
institution comprising a jail, prison, penal institution, or
correctional facility, or comprising any other institution a
purpose of which is to confine individuals as described in
paragraph (1)(A)(ii). Under such agreement--
``(I) the institution shall provide to the Commissioner, on
a monthly basis and in a manner specified by the
Commissioner, the names, social security account numbers,
dates of birth, confinement commencement dates, and, to the
extent available to the institution, such other identifying
information concerning the individuals confined in the
institution as the Commissioner may require for the purpose
of carrying out paragraph (1); and
``(II) the Commissioner shall pay to the institution, with
respect to information described in subclause (I) concerning
each individual who is confined therein as described in
paragraph (1)(A), who receives a benefit under this title for
the month preceding the first month of such confinement, and
whose benefit under this title is determined by the
Commissioner to be not payable by reason of confinement based
on the information provided by the institution, $400 (subject
to reduction under clause (ii)) if the institution furnishes
the information to the Commissioner within 30 days after the
date such individual's confinement in such institution
begins, or $200 (subject to reduction under clause (ii)) if
the institution furnishes the information after 30 days after
such date but within 90 days after such date.
``(ii) The dollar amounts specified in clause (i)(II) shall
be reduced by 50 percent if the Commissioner is also required
to make a payment to the institution with respect to the same
individual under an agreement entered into under section
1611(e)(1)(I).
``(iii) The provisions of section 552a of title 5, United
States Code, shall not apply to any agreement entered into
under clause (i) or to information exchanged pursuant to such
agreement.
``(iv) There is authorized to be transferred from the
Federal Old-Age and Survivors Insurance Trust Fund and the
Federal Disability Insurance Trust Fund, as appropriate, such
sums as may be necessary to enable the Commissioner to make
payments to institutions required by clause (i)(II).
``(v) The Commissioner is authorized to provide, on a
reimbursable basis, information obtained pursuant to
agreements entered into under clause (i) to any agency
administering a Federal or federally-assisted cash, food, or
medical assistance program for eligibility purposes.''.
(2) Effective date.--The amendments made by this subsection
shall apply to individuals whose period of confinement in an
institution commences on or after the first day of the fourth
month beginning after the month in which this Act is enacted.
(b) Elimination of Title II Requirement That Confinement
Stem From Crime Punishable by Imprisonment for More Than 1
Year.--
(1) In general.--Section 202(x)(1)(A) of such Act (42
U.S.C. 402(x)(1)(A)) is amended--
(A) in the matter preceding clause (i), by striking
``during'' and inserting ``throughout'';
(B) in clause (i), by striking ``an offense punishable by
imprisonment for more than 1 year (regardless of the actual
sentence imposed)'' and inserting ``a criminal offense''; and
(C) in clause (ii)(I), by striking ``an offense punishable
by imprisonment for more than 1 year'' and inserting ``a
criminal offense''.
(2) Effective date.--The amendments made by this subsection
shall apply to individuals whose period of confinement in an
institution commences on or after the first day of the fourth
month beginning after the month in which this Act is enacted.
(c) Conforming Title XVI Amendments.--
(1) Fifty percent reduction in title xvi payment in case
involving comparable title ii payment.--Section 1611(e)(1)(I)
of the Social Security Act (42 U.S.C. 1382(e)(1)(I)) is
amended--
(A) in clause (i)(II), by inserting ``(subject to reduction
under clause (ii))'' after ``$400'' and after ``$200'';
(B) by redesignating clauses (ii) and (iii) as clauses
(iii) and (iv) respectively; and
(C) by inserting after clause (i) the following new clause:

[[Page H4018]]

``(ii) The dollar amounts specified in clause (i)(II) shall
be reduced by 50 percent if the Commissioner is also required
to make a payment to the institution with respect to the same
individual under an agreement entered into under section
202(x)(3)(B).''.
(2) Expansion of categories of institutions eligible to
enter into agreements with the commissioner.--Section
1611(e)(1)(I)(i) of such Act (42 U.S.C. 1382(e)(1)(I)(i)) is
amended in the matter preceding subclause (I) by striking
``institution'' and all that follows through ``section
202(x)(1)(A),'' and inserting ``institution comprising a
jail, prison, penal institution, or correctional facility, or
with any other interested State or local institution a
purpose of which is to confine individuals as described in
section 202(x)(1)(A)(ii),''.
(3) Effective date.--The amendments made by this subsection
shall take effect as if included in the enactment of section
203(a) of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (Public Law 104-193; 110 Stat.
2186). The reference to section 202(x)(1)(A)(ii) of the
Social Security Act in section 1611(e)(1)(I)(i) of such Act
as amended by paragraph (2) shall be deemed a reference to
such section 202(x)(1)(A)(ii) as amended by subsection
(b)(1)(C).
(d) Continued Denial of Benefits to Sex Offenders Remaining
Confined to Public Institutions Upon Completion of Prison
Term.--
(1) In general.--Section 202(x)(1)(A) of the Social
Security Act (42 U.S.C. 402(x)(1)(A)) is amended--
(A) in clause (i), by striking ``or'' at the end;
(B) in clause (ii)(IV), by striking the period and
inserting ``, or''; and
(C) by adding at the end the following new clause:
``(iii) immediately upon completion of confinement as
described in clause (i) pursuant to conviction of a criminal
offense an element of which is sexual activity, is confined
by court order in an institution at public expense pursuant
to a finding that the individual is a sexually dangerous
person or a sexual predator or a similar finding.''.
(2) Conforming amendment.--Section 202(x)(1)(B)(ii) of such
Act (42 U.S.C. 402(x)(1)(B)(ii)) is amended by striking
``clause (ii)'' and inserting ``clauses (ii) and (iii)''.
(3) Effective date.--The amendments made by this subsection
shall apply with respect to benefits for months ending after
the date of the enactment of this Act.

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

(a) In General.--Notwithstanding section 1402(e)(4) of the
Internal Revenue Code of 1986, any exemption which has been
received under section 1402(e)(1) of such Code by a duly
ordained, commissioned, or licensed minister of a church, a
member of a religious order, or a Christian Science
practitioner, and which is effective for the taxable year in
which this Act is enacted, may be revoked by filing an
application therefor (in such form and manner, and with such
official, as may be prescribed in regulations made under
chapter 2 of such Code), if such application is filed no
later than the due date of the Federal income tax return
(including any extension thereof) for the applicant's second
taxable year beginning after December 31, 1998. Any such
revocation shall be effective (for purposes of chapter 2 of
the Internal Revenue Code of 1986 and title II of the Social
Security Act), as specified in the application, either with
respect to the applicant's first taxable year beginning after
December 31, 1998, or with respect to the applicant's second
taxable year beginning after such date, and for all
succeeding taxable years; and the applicant for any such
revocation may not thereafter again file application for an
exemption under such section 1402(e)(1). If the application
is filed after the due date of the applicant's Federal income
tax return for a taxable year and is effective with respect
to that taxable year, it shall include or be accompanied by
payment in full of an amount equal to the total of the taxes
that would have been imposed by section 1401 of the Internal
Revenue Code of 1986 with respect to all of the applicant's
income derived in that taxable year which would have
constituted net earnings from self-employment for purposes of
chapter 2 of such Code (notwithstanding section 1402 (c)(4)
or (c)(5) of such Code) except for the exemption under
section 1402(e)(1) of such Code.
(b) Effective Date.--Subsection (a) shall apply with
respect to service performed (to the extent specified in such
subsection) in taxable years beginning after December 31,
1998, and with respect to monthly insurance benefits payable
under title II of the Social Security Act on the basis of the
wages and self-employment income of any individual for months
in or after the calendar year in which such individual's
application for revocation (as described in such subsection)
is effective (and lump-sum death payments payable under such
title on the basis of such wages and self-employment income
in the case of deaths occurring in or after such calendar
year).

SEC. 9. ADDITIONAL TECHNICAL AMENDMENT RELATING TO
COOPERATIVE RESEARCH OR DEMONSTRATION PROJECTS
UNDER TITLES II AND XVI.

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

The SPEAKER pro tempore. After 1 hour of debate on the bill, as
amended, it shall be in order to consider the further amendment printed
in the Congressional Record, if offered by the gentleman from New York
(Mr. Rangel), or his designee, which shall be considered read and
debatable for 1 hour, equally divided and controlled by the proponent
and an opponent.
The gentleman from Texas (Mr. Archer) and the gentlewoman from
Connecticut (Mrs. Kennelly) each will control 30 minutes of debate on
the bill.
The Chair recognizes the gentleman from Texas (Mr. Archer).

General Leave

Mr. ARCHER. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days within which to revise and extend their remarks
and include extraneous material on H.R. 3433.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Texas?
There was no objection.
Mr. ARCHER. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, the Social Security disability program provides
essential income to those who are unable to work due to severe illness
or injury. Last year, benefits were paid to more than 6.1 million
workers, their wives, and their children.
Since arriving on Capitol Hill 27 years ago, I have worked to make
this complex, and often very unfriendly, program work better.
That is why I am so pleased today that my effort has been carried
forward by the fine work of the gentleman from Kentucky (Mr. Bunning)
our subcommittee chairman and the gentlewoman from Connecticut (Mrs.
Kennelly) the ranking minority member, as well as all of the other
members of the Subcommittee on Social Security who have created this
important bipartisan legislation aimed at providing real opportunities
for those who want to work.
Mr. Speaker, so often we hear about the cacophony of this body, the
fractionalism, the partisanship. It is to be noted that here we are
doing something together, reaching across the aisle, without
distinction as to party, to help give opportunity to those who are
disabled.
Most of those receiving disability benefits, due to the severity of
their impairments, cannot attempt to work. Today, however, the
Americans with Disabilities Act, along with advances in assistive
technology, medical treatment, and rehabilitation therapies are opening
doors of opportunity, never thought possible, to individuals with
disabilities.
Yet current law still tends to chain these disabled persons to an
outmoded system, through complex, so-called work incentives. In
essence, individuals who try to work lose cash benefits along with
access to medical coverage which they so desperately need while they
make the move to self-sufficiency.
This legislation will finally help beneficiaries pass through these
new doors of opportunity. We are, I believe, our brothers' and sisters'
keepers. I consider it very important for us to provide the support
which permits disabled individuals the freedom to reach their utmost
potential.
This bill, as I mentioned, is bipartisan and is supported by the
administration. It also is supported by individuals with disabilities,
their advocates, rehabilitation service providers, and many others.
This, therefore, is a proud day for the Committee on Ways and Means
and for the House of Representatives. America stands for opportunity.
Today we rise together to provide greater opportunities for those
individuals with disabilities who want to be gainfully employed.
I know all of my colleagues will join me with pride in support of
this pivotal legislation.
Mr. Speaker, I reserve the balance of my time.
Mrs. KENNELLY of Connecticut. Mr. Speaker, I yield myself such time
as I may consume.
I would like to do a few things before I make my statement. First, I
would like to make reference to the letter, the statement of the
administration on this bill that we have before us today, President
Bill Clinton and his administration. The letter states:

The Administration supports H.R. 3433, and is pleased that
the House is taking action on

[[Page H4019]]

the critical issue of making it possible for more people with
disabilities to return to or enter the workforce. H.R. 3433
would implement a Presidential initiative to increase
flexibility and choice for individuals with disabilities who
seek services to help them successfully return to work. This
is an Administration priority, as reflected in the
President's March 13th Executive Order that established a
task force of Federal agencies to identify additional actions
required to increase the employment of adults with
disabilities.
Bill Clinton, his administration supports this bill.
Mr. Speaker, I would like to take this opportunity to thank the
gentleman from Texas (Mr. Archer) and the gentleman from New York (Mr.
Rangel) for allowing the committee to take the time, and the staff
effort for bringing this bill forth today so it could be on the floor.
I would like to also thank Mr. Tony Young from the United Cerebral
Palsy agency for his time and his effort and being with us not only to
testify at the hearings but at the various other meetings that we had,
the United Cerebral Palsy Association is behind this bill, but he has
been remarkable in his efforts in supporting this and making sure that
every single ``I'' was dotted and all the work was done as an advocate
for disabilities. I would also like to thank Marty Ford from AARP for
the work that she did, the support that she found for us, and I
obviously want to thank the gentleman from Kentucky (Mr. Bunning) the
chairman of the Subcommittee on Social Security for his efforts. We
would not be here if it was not for him today. He was so wonderful in
making sure all the advocates were able to come forth and to show us
exactly what happens in the day-to-day life of those with disabilities
and what we had to do in this legislation to make their lives that much
better.
And so, Mr. Speaker, we are here today to send a very, very simple
message. That message is that a disability should not mean retirement.
Americans with disabilities have tremendous skills, talents and
abilities that are very, very, very important to employers. This
legislation, therefore, attempts to help people voluntarily to return
to work after they have suffered a disability.
Mr. Speaker, more than 6 million Americans now receive Social
Security disability insurance. These people, Mr. Speaker, have paid
taxes into public insurance and into the system and they have a right
to these benefits to protect them against the loss of income due to
retirement or disability.
Another 4 million adults with disabilities receive SSI payments,
which are designed to keep low-income Americans who have disabilities
from having to live below the poverty line. And so we have these 10
million people being addressed in this legislation today.
There can be no doubt that these are worthwhile programs that
millions of Americans depend on. But it is also equally true that given
the choice, many of these individuals who have disabilities would much
rather be working. However, Americans with disabilities now find a
multitude of barriers standing between them and a job. The loss of
disability benefits, the need for training in a different profession,
difficulty in learning how to do a new job if in fact you did one
particular type of work, then had your accident or your sickness, then
going back into the workforce, could not do that job that you had
previously done but you could get the training to do a new job, this
would make all the difference in the world to somebody with a
disability. Obviously, there is another fear, the great fear of losing
medical coverage. This very definitely can stand in the way of many
individuals when daring to go back into the workforce because they have
that fear that if they go back in, they might not be able to make it
and then they would lose their health care. Obviously this is something
that we had to address and we did in this bill.
This legislation we are now considering would reduce the severity of
some of these impediments to work. For example, the legislation would
provide recipients with a much greater choice in vocational
rehabilitation providers who help train and find jobs for individuals
with disabilities. Additionally, the measure would provide a clear
incentive for these providers to help beneficiaries not only get jobs
but also to stay in them since provider payments would be based on a
person's work history over a 5-year period.

{time} 1615

This bill would also provide continued Medicare coverage for those
leaving the SSDI rolls for work. More specifically, the legislation
would guarantee Medicare coverage for at least 6 years after that
individual went off disability and returned to the work rolls. Six
years sounds like a long time, but if you have a serious disability, it
is the time that you need, and this is an additional 2 years. We have
under present law 4 years of disability, 4 years of Medicare if you
have a disability. This increases that number of years to 6 years.
And, finally, the legislation would test the idea of gradually
reducing SSDI benefits for individuals who leave the disability rolls
for work rather than immediately ending their benefits of any month in
which they earn more than $500, as is the case under current law. In
other words, what we want to examine is the possibility of providing a
ramp to get off disability benefits rather than all of a sudden $500 a
month and a cliff and they are off.
We do not offer this legislation as the last word in helping
individuals voluntarily leave the disability rolls for work, but we do
see this bill as a very constructive first step toward opening the
doors of employment a little wider for people with disabilities, a
little larger chance to get back into the mainstream, one opportunity
more to make sure that they could go back to where they want to be.
And let me once again point out that even if this bill only
increases, only increases the number of people leaving the disability
rolls for work by 1 percent, we would save the Social Security system
$3 billion. Now that sounds almost imaginable. You cannot imagine that,
Mr. Speaker; but the fact of the matter is, under the present system we
are losing $3 billion a year for the system if we do not get at least 1
percent off the rolls.
So this bill is truly a win-win proposition. It will help people
work, and it will strengthen the Social Security system.
Before I conclude, let me once again thank the gentleman from
Kentucky (Mr. Bunning) without whom we would not be here, because he
called those meetings, he kept us at those meetings, he listened to the
advocates from around the country bring their testimony to the Congress
to show what we had to do.
I have enjoyed working with the chairman of the subcommittee, and I
really think, I say to the gentleman from Kentucky (Mr. Bunning) that
we have reduced some of those barriers that are so impossible for
people to get beyond to get back to work where they want to be. And I
thank the gentleman very much for letting me work with him, for both of
us working together, and I am pleased and delighted that this bill is
on the floor today.
Mr. Speaker, I reserve the balance of my time.
Mr. BUNNING. Mr. Speaker, I yield myself such time as I may consume.
(Mr. BUNNING asked and was given permission to revise and extend his
remarks.)
Mr. BUNNING. Mr. Speaker, I want to thank the ranking member, the
gentlewoman from Connecticut (Mrs. Kennelly) for her input on this bill
and particularly the staffs who worked very well in cooperation to make
it complete.
Sandy, thank you very much; and we appreciate all the hard work Kim
and others on our side have done.
The Social Security program is vitally important, as everyone knows,
to all Americans. The disability program is particularly critical in
protecting those workers and their families who become smitten by an
incapacitating illness or accident.
Through our Subcommittee on Social Security hearings over the last 3
years we have been told over and over by individuals with disabilities,
their advocates, rehabilitation experts and various providers of
services that, due to advances in medicine, technology and the field of
rehabilitation, many individuals with disabilities want to work and
they believe they could work if provided needed rehabilitation and
support services and if the program could be changed to remove the
barriers preventing beneficiaries from becoming self-sufficient through
employment.

[[Page H4020]]

Topping the list, and we have heard it before, is the fear of losing
health care coverage and cash benefits. Another disincentive is that
beneficiaries currently have limited choices in selecting
rehabilitation services and who provides those services.
The gentlewoman from Connecticut (Mrs. Kennelly) and I, along with
all of the members of the subcommittee, have worked very hard on a
bipartisan basis and with the administration to replace disincentives
with real incentives. Our legislation empowers beneficiaries first by
allowing them to choose the public or private provider of services
which best suits their needs and to choose the type of services most
likely to assist them in entering the work force. The bill pays
providers of services for results by permitting them to share in the
savings to the Social Security Trust Funds incurred when the
beneficiary is working and no longer receiving benefits. The provider
payment system is designed to ensure that as many providers as possible
are available to beneficiaries.
To address one of the primary obstacles facing disability
beneficiaries who attempt to work, our bill extends, as we have heard
before, Medicare coverage for an additional 2 years for those who
participate in the program. To help beneficiaries who have mental
disabilities or chronic conditions transition into work, our bill
includes a requirement that SSA test a gradual offset of disability
cash benefits by reducing benefits $1 for every 2 earned over a
determined level.
The Subcommittee on Social Security has crafted a solid bill, a bill
that, according to preliminary CBO estimates, will more than quadruple
the number of beneficiaries who will receive rehabilitation and other
support services as the program is implemented. In addition, this bill
will save the Social Security Trust Funds and general revenues millions
of dollars over the years.
Let me make one point perfectly clear. This is a voluntary program
providing real opportunities for those who want to work. No one will be
forced to leave the disability rolls. The Social Security and
supplemental Social Security income disability programs are preserved
as a much-needed safety net for people who are unable to work.
Under this bill, personal responsibility is maximized by allowing
beneficiaries to take charge of their own lives and become employed.
This legislation, once signed into law, will transform the disability
program to a program of investment versus entitlement, encouraging
self-sufficiency versus dependency. I urge my colleagues to support
this legislation.
I also would like to include in the record a letter from the American
Association of Retired Persons in support of this legislation and also
a letter from the United States Chamber of Commerce also in support of
this legislation.
Mr. Speaker, I reserve the balance of my time.
The documents referred to are as follows:

AARP,

June 3, 1998.
Hon. Jim Bunning,
House of Representatives, Rayburn House Office Building,
Washington, DC.
Dear Representative Bunning: AARP commends you and
Respresentative Kennelly for your leadership on HR 3433, the
Ticket to Work Act. We believe your legislation could set the
stage for important improvements in both the Social Security
and Supplemental Security Income (SSI) disability programs
that will benefit society, our economy, and beneficiaries who
are able to return to work.
The Ticket to Work Act provides a series of incentives to
encourage SSDI and SSI beneficiaries to work to the greatest
extent of their abilities. While income support for those who
can never return to the workforce is critical, we must do a
better job of helping individuals with disabilities who want
to, and can, work. This legislation begins the process by
phasing-in and then evaluating incentives that many
disability experts agree would promote additional work.
Again, we commend you and your committee for developing a
program that will promote greater work effort by disabled
beneficiaries who have the ability and desire to return to
the labor force--a result that helps returning workers, their
families, and society.
Sincerely,
Martin Corry,
Director, Federal Affairs.
____

Chamber of Commerce of the

United States of America,

Washington, DC, June 3, 1998.
Hon. Jim Bunning,
Chairman, Ways and Means Subcommittee on Social Security,
House of Representatives, Washington, DC.
Dear Mr. Chairman: On behalf of the U.S. Chamber of
Commerce, the world's largest business federation
representing more than three million businesses and
organizations of every size, sector, and region, we commend
you for your sponsorship of H.R. 3433, the Ticket to Work and
Self-Sufficiency Act of 1998.
As the largest business federation, the U.S. Chamber of
Commerce has made it a priority to help meet the growing
challenge that businesses face in finding skilled workers to
sustain a growing economy. Central to combating this problem
is the exploration and training of non-traditional sources of
labor, such as persons with disabilities. Studies indicate
that faced with inadequate rehabilitation and training, as
well as the threat of loss of benefits and health care, many
persons with disabilities are discouraged to enter the
workforce.
Accordingly, we support H.R. 3433, the Ticket to Work and
Self-Sufficiency Act of 1998 which will reduce employment
obstacles for Social Security and Supplemental Security
Income disability recipients. This bipartisan legislation
addresses these employment obstacles by expanding their
choices for providers of vocational rehabilitation, by
extending their Medicare coverage from four to six years, and
by offering them a tax credit of 50 percent for the cost of
impairment-related work expenses.
Workforce development is a top priority of the U.S.
Chamber. We therefore pledge to work with both Houses of
Congress to enact this critical legislation which empowers
disability recipients with the ability to return to a life of
economic security and self-sufficiency--a goal that is shared
by the American business community.
Sincerely,
R. Bruce Josten,
Executive Vice President.

Mrs. KENNELLY of Connecticut. Mr. Speaker, I yield 2\1/2\ minutes to
the gentlewoman from Florida (Mrs. Thurman).
Mrs. THURMAN. Mr. Speaker, I want to thank the gentlewoman from
Connecticut (Mrs. Kennelly) for yielding this time to me.
I would like to express my strong support for this bipartisan
legislation. I think, given the choice, most disability beneficiaries
would rather be working. However, as we have learned during committee
hearings, there are currently numerous obstacles facing these
beneficiaries in their pursuit of employment including the fear of
losing health and cash benefits and little known and complex work
incentives.
In a true bipartisan manner Congress has addressed these issues in
the legislation before us today. After five hearings over nearly 4
years involving individuals with disabilities, advocates,
rehabilitation experts, providers and the administration, we finally
have a comprehensive bill which we believe will significantly ease the
transition of SSDI and SSI disabled beneficiaries into the work force.
In short, H.R. 3433 would establish a ticket to work and self-
sufficiency program which would provide beneficiaries with a ticket to
obtain vocational rehabilitation employment or other support services.
These tickets would provide beneficiary choices and essential
rehabilitation and support services. More specifically, this
legislation would institute employment networks which would encourage
disabled beneficiaries to establish employment goals.
This measure also addresses the fears associated with potentially
losing one's health care during pursuit of employment by extending
health care coverage an additional 2 years. And another important
component of this proposal is that these networks would be paid on a
results-oriented basis. In other words, payments to providers would be
based on the success of returning the beneficiary to work. Is not this
making government and these programs more efficient and effective?
I would like to thank the Committee on Social Security and, more
specifically, the chairman, the gentleman from Kentucky (Mr. Bunning)
and ranking member, the gentlewoman from Connecticut (Mrs. Kennelly)
for their hard work and commitment to opening these doors to
employment. This is a strong and effective piece of legislation, and I
urge my colleagues to give this measure their full support.
Mr. Speaker, I reserve the balance of my time.
Mr. BUNNING. Mr. Speaker, I yield 3 minutes to the gentlewoman from
Connecticut (Mrs. Johnson).
Mrs. JOHNSON of Connecticut. Mr. Speaker, I thank the gentleman for
yielding this time to me.

[[Page H4021]]

Mr. Speaker, this is truly a red letter day for disabled Americans,
and I congratulate the gentleman from Kentucky (Mr. Bunning) and the
gentlewoman from Connecticut (Mrs. Kennelly) on this bipartisan
legislation that is going to change so many lives. They worked together
and closely with the disabled community to put together a bill that
will begin to break down the barriers to work and personal fulfillment
that are now so ingrained in our Social Security disability program.
I am also pleased that the House has made passage of this bill a
priority during this session.
Mr. Speaker, it is our job to be sure that every American has the
opportunity to develop the skills and abilities they have to fulfill
their potential in our free society. It is our job to break down
barriers in old laws so that people can create their futures.
The current system has had very limited success in helping people,
indeed even allowing people, to take the steps they desperately want to
take to change their lives. Currently, less than 5 percent of
beneficiaries return to work because the program barriers are so
insurmountable, and this in spite of, as the gentleman from Kentucky
(Mr. Bunning) alluded to, the dramatic changes that have taken place in
our rehabilitative resources.
One of the greatest of these barriers is lack of access to affordable
health care once a person returns to work. People leaving disability
usually find employment first in low-paying jobs that rarely offer
employer-sponsored health coverage. H.R. 3433 takes a powerful step to
address this problem by extending availability of Medicare coverage.
However, Medicare does not provide coverage for some of the critical
services that some disabled people depend upon. For example,
traditional Medicare does not cover prescription drug coverage or
provide prescription drug coverage or personal assistance services,
services critical to disabled people and currently covered by Medicaid
for low income recipients.
In meetings with people and organizations in my district over the
last year I have become keenly aware of the problems faced by people
with severe psychiatric disabilities in their search for meaningful
employment. The single largest issue affecting their ability to work is
their ability to afford psychotropic drugs that help them manage their
illness. Because traditional Medicare does not provide prescription
drug coverage, this proposal still leaves many people with limited
options.
According to a letter I received from the Connecticut Northwest
Regional Mental Health Board regarding H.R. 3433, they say persons with
long-term psychiatric illness experience significant impairment in
cognitive, behavioral, vocation and interpersonal skills. The impact of
mental illness on these clients is usually lifelong, with vocational
capacity varying significantly over the course of a client's illness.
Mr. Speaker, this is an important piece of legislation, and I urge
favorable action by the House.

{time} 1630.

Mrs. KENNELLY of Connecticut. Mr. Speaker, I yield 3 minutes to the
gentleman from Michigan (Mr. Levin).
Mr. LEVIN. Mr. Speaker, I would like to thank the gentlewoman for
yielding me time, and congratulate her and the chairman of our
subcommittee on their very diligent and effective work, and now
successful work.
Mr. Speaker, I have no doubt this will become law. The reason for
that is the basic thrust of this legislation, and that is to enhance
the opportunities of the disabled who want to work, while always
protecting those who cannot. We must never forget that so many people
who are receiving disability payments simply are not able to return to
the workforce, and we must never forget them.
But for those who are receiving disability payments who could return
to work or to part-time work, what this bill does is attempt to enhance
those opportunities, and it does so in a number of imaginative ways. It
improves the rehabilitative services that are so critical by
definition, and it does that by changing the scheme and structure of
payments to try to encourage the effectiveness of their rehabilitation.
It also, as has been mentioned, undertakes another very vital aspect
of this, and that is to make sure that there will be continued longer
Medicare coverage when people move from the disability roll payments to
work. Without that kind of protection of health care, it is pretty
clear that there would be continued disincentive to work.
We have found in other instances that we cannot expect those whose
only source of medical care is receipt of a payment from the Federal
Government to forfeit that, and many of the disabled by definition, as
is true of the nondisabled, would be moving into positions that have no
health care or very inadequate health care, when the disabled by
definition need very, very comprehensive health care.
So I congratulate the gentleman from Kentucky (Mr. Bunning) and the
gentlewoman from Connecticut (Mrs. Kennelly) for this provision. Also
there is an effort to look at the possibility of a new structure so
disability payments can continue in some amount while people are moving
from disability to work. So I congratulate the authors. I have been
proud to be a cosponsor and work with them. I hope this will pass, not
only overwhelmingly but unanimously, and we can all go to the White
House, or at least maybe in the quiet of night or day it will be
signed. One way or another, it will become law.
Mr. BUNNING. Mr. Speaker, I yield 3 minutes to the gentleman from
Pennsylvania (Mr. English).
(Mr. ENGLISH of Pennsylvania asked and was given permission to revise
and extend his remarks.)
Mr. ENGLISH of Pennsylvania. Mr. Speaker, first of all I want to
thank the gentleman from Kentucky (Mr. Bunning), who more than anyone
has put in long years to bring this legislation to the floor. It is a
great tribute to him and his efforts.
Mr. Speaker, every American should have the right to aspire to the
American dream. In America, every citizen should have the opportunity
to participate in our economy to the extent of their talent or
abilities.
Unfortunately, many individuals with disabilities have had the
American dream recede beyond their reach, not because of physical
limitations but because of roadblocks created within our system of
social services. These artificial barriers unfairly and unnecessarily
reduce workforce participation and economic opportunity for many
Americans whose disability should not bar them from gainful employment.
Mr. Speaker, in my view the time has come to empower these Americans
to participate fully in the broad emporium of our national economy. I
rise in strong support of the Ticket to Work and Self-Sufficiency Act.
This bipartisan bill establishes a new program that will provide SSDI
and SSI disabled beneficiaries with a ticket to a variety of support
services, enabling these beneficiaries to reenter the workforce.
Private sector providers, known as employment networks, would be
established to assist beneficiaries, and the Social Security
Administration would contract with program managers to administer the
Ticket to Work and Self-Sufficiency Program nationwide.
The program will include vocational rehabilitation and employment
services, and beneficiaries would be in a position to choose the
service provider that they would like to participate in. This will
create competition and improve quality.
The Ticket to Work and Self-Sufficiency Program would pay employment
networks for results, rather than merely for the cost of their
services. It also contains a significant demonstration project that
allows the disabled to maintain their benefits while earning more at
work than allowed under current law.
Right now, we have a situation which I consider obscene. Once a
Social Security disability beneficiary reaches an income level of only
$500 a month, all of their cash benefits are cut off. This has the
effect of retarding workforce participation by recipients and punishing
hard work and ambition among some of our most vulnerable citizens.
Under this bill, Social Security would be required to conduct a
demonstration project to study the effects of replacing that income
cliff with a $1 for $2 withholding of benefits for earnings at the
current cutoff level. Instead of a cliff, it would be a slope, and we
know intuitively that more people would be able to participate.

[[Page H4022]]

This is balanced and much-needed legislation that finally begins to
address the needs of disabled individuals who want to work, but are
discouraged from doing so by a variety of irrational roadblocks. I urge
passage of this legislation.
Mrs. KENNELLY of Connecticut. Mr. Speaker, I yield 3 minutes to the
gentleman from Minnesota (Mr. Vento).
Mr. VENTO. Mr. Speaker, I thank the gentlewoman for yielding me time,
and commend her and the committee on which she serves for the work they
have done on this bill.
Mr. Speaker, I rise in support of this legislation. I think it is
important to understand with all the discussion that has gone on with
regard to the Social Security programs that nearly 40 percent, 38
percent, actually, of the benefits that are payable by the Social
Security Administration from those funds go to those on disability and
to survivors and to dependents. Almost 40 percent, 38 cents out of a
dollar, go for that purpose.
This bill, of course, attempts to begin to review and try to, I think
in a common sense way, provide a positive path for those on Social
Security disability to move back into the mainstream of our society and
back into the world of work.
It is called a Ticket to Work, and it is very important, as we look
at the structure of our Social Security disability system with the $500
earnings limit, all of a sudden one day you have the benefits coming in
for a month, which probably are far in excess of that $500, plus you
have the opportunity for health benefits and other support programs,
but you simply would, as indicated, be dropped off a cliff. So it makes
it very difficult. This begins to look at trying to change that system.
Of course, as most of my colleagues are aware, Social Security
disability recipients, a small number of them, actually do participate
in vocational rehabilitation programs. But I believe there is not
enough of an emphasis upon that, especially considering the fact that
many Social Security disability beneficiaries may be young people. They
may have been the victim of an auto accident or some other type of
instance. Or they may be older workers that find it is easier to be on
Social Security disability than to be involved in retraining. When they
are 62, then they are mandatorily retired at that point. In fact, most
of us recognize that their efforts in terms of work could well extend
beyond the normal retirement age today of 65, and they could be working
until they are 70.
This is one of the really important ways to try and rectify some of
the problems with the Social Security insurance program. Many of my
constituents, and I think many of the people across this country are
not aware of the fact that they are insured by this particular system
and the amount of resources that move in this direction.
I think it is also, of course, workable for those on SSI. This bill
embraces both, and I note in reading the summary that we have been
given of this that this bill actually in five years, while just a pilot
program, I guess, in most respects, will save almost $40 million. So it
is actually saving money by investing in people, investing in training
and providing incentives to those who do the vocational training so
they can share in some remuneration from this. It actually saves the
taxpayer and saves the Social Security Administration money.
So, Mr. Speaker, I urge my colleagues to vote for this. I think it is
a good idea, and I hope it is a great success when put in place.
Mr. BUNNING. Mr. Speaker, it is my pleasure to yield 4 minutes to the
gentleman from Missouri (Mr. Hulshof).
Mr. HULSHOF. Mr. Speaker, as both a member of the Subcommittee on
Social Security and a cosponsor of the Ticket to Work and Self-
Sufficiency Act, I rise to express my strong support for this important
and well-conceived piece of legislation. I do commend the gentleman
from Kentucky (Mr. Bunning), the chairman of the subcommittee, as well
as the gentlewoman from Connecticut (Mrs. Kennelly), the ranking
member, for their efforts in working together.
Over the last 18 months that I have been a member of the subcommittee
we have had, I think, three separate hearings on the current SSDI and
SSI programs and their existing work incentives. What our subcommittee
heard, Mr. Speaker, was heartening testimony from disabled individuals
who have a genuine desire to return to work and provide for their own
well-being.
What we also discovered is that the existing programs, as has been
mentioned, and as are currently structured, often serve as a barrier
for these individuals to achieve the noble and worthwhile goal of
becoming productive citizens. We cannot as a body in good conscience
allow a program that is meant to help the disabled turn into a system
that restricts the potential of the motivated and talented individuals
who, despite simply a disability, want to move on with their lives.
What this Ticket to Work Act does is give those who are afflicted
with a disability a helping hand. Recognizing that the challenges that
no two persons face are alike, this bill gives those that are disabled
the ability to receive rehabilitation services from the provider of
their choosing and then, as empowered consumers, the disabled will be
able to receive rehabilitation services from the provider that can best
provide their specific needs.
As has been mentioned, under current law the disabled are required to
see State agencies for help. This legislation will allow individuals in
the public or private or not-for-profit sectors to work together to
help those disabled individuals who want to return to the workforce.
Private agencies offering vocational training would be reimbursed
according to the agency's success in helping people return to work and
then remain in the workforce.
Since one of the major inhibitions preventing the disabled from
enjoying economic success is the fear of losing health insurance, this
bill we are considering extends Medicare eligibility for an additional
two years. Again, under current law people on SSDI, as the gentleman
from Pennsylvania pointed out very eloquently, SSDI abruptly terminates
benefits once a disabled individual earns $500 a month.
This legislation authorizes the Social Security Administration to
conduct a demonstration project to replace this current income cliff
with a gradual, sliding scale reduction in SSDI benefits as individuals
enjoy more success in the workforce and their earnings increase.
Mr. Speaker, it takes courage and it takes dedication for a disabled
individual to return to work. I have the utmost respect and admiration
for those who are willing to take this important step. Again, we should
be looking to knock down, not erect, barriers for these courageous
individuals. This legislation does just that.
The Ticket to Work Act will go a long way in achieving everyone's
goal of helping people move on with their lives, allow our society to
benefit, and I urge support. I thank the chairman and ranking member
for their great work in fashioning this bill.
Mrs. KENNELLY of Connecticut. Mr. Speaker, I am delighted we have
reached this juncture where we are about to pass this bill that sends a
message of hope to millions of people on disability that there will be
additional help to make that transfer back to the workplace, if
possible.
Mr. Speaker, having no further speakers, I yield back the balance of
my time.

{time} 1645

Mr. BUNNING. Mr. Speaker, I have the great pleasure of yielding 2
minutes to the gentleman from New Jersey (Mr. Frelinghuysen).
Mr. FRELINGHUYSEN. Mr. Speaker, I am pleased to rise in support of
H.R. 3433, and commend the gentleman from Kentucky (Mr. Bunning) and
the gentlewoman from Connecticut (Mrs. Kennelly) for all of their hard
work in putting together this important, comprehensive, and what I
would call historic legislation and bringing it to the floor today.
This bill will provide a true Ticket to Work for disabled individuals
by bringing them back into the workforce while providing them with a
safety net of needed government services. It addresses the
disincentives which exist in current law that discourage disabled
individuals from joining the workforce.
According to a recent Washington Post article, 6.6 million working-
age Americans receive disability checks from the Federal Government
every month. All too often, these individuals are unable to return to
the workforce.

[[Page H4023]]

Among the barriers they face upon returning to work is that they risk
the loss of important medical benefits such as Medicare health
coverage. Under this legislation, individuals would be eligible for up
to 6 years of Medicare benefits. In addition, this bill provides a
voucher that individuals can exchange for rehabilitation, employment or
other necessary services.
The Ticket to Work bill will change the Social Security
Administration's disability programs for the better. As Tony Young of
the United Cerebral Palsy Association said in his testimony before the
Committee on Ways and Means in March, these programs, and I quote,
``are transformed from a safety net into a trampoline; not only
catching people with disabilities as they fall out of work, but also
giving them a boost back into work as they are ready.''
I know how important this work is. One of my constituents, Matt
Conway of Florham Park, New Jersey, has been honored by the Foundation
for Excellent Children's Yes I Can! Program for his achievements in the
working world. This type of bill will assure that the Mat Conways of
this world have future opportunities.
Mr. BUNNING. Mr. Speaker, I yield 3 minutes to the gentleman from
Illinois (Mr. Weller).
Mr. WELLER. Mr. Speaker, as a member of the Subcommittee on Social
Security, let me begin by commending the gentleman from Kentucky (Mr.
Bunning), the chairman, and the gentlewoman from Connecticut (Mrs.
Kennelly), the ranking member, for their leadership and hard work in
producing some real successful results, legislation that is going to
help people, people who want to work and become self-sufficient.
I am proud that it has earned overwhelming bipartisan support; and
that is a result of hard work by the two leaders of our subcommittee.
The bottom line is this is a good bill, legislation that helps the
disabled.
Disabled people have said we need to do a better job. When I came to
Washington in 1994, one of our goals was, of course, to change how
Washington works and to make government work better for those who need
help. It is this type of legislation that can make that kind of
difference for those who need help.
People want to work. In this case, the disabled have asked for a
helping hand with training and rehabilitation. This legislation works
towards that goal, giving the disabled an opportunity to work and
become more self-sufficient.
Unfortunately, our current disability system has not been working
very well, only enabling about 8,000 Americans who are disabled to join
the workforce each year. This legislation will give disability
beneficiaries a ticket or voucher so they can use State or nonprofit or
private employment training programs, and also give service providers
incentives to do a better job, better train their clients, provide them
with permanent employment and job opportunities.
There is another important provision I would like to mention, and I
particularly want to commend the gentleman from California (Mr.
Herger), my colleague, for his work with this particular provision
included in this legislation. That is the legislation that was
originally contained in H.R. 530, the Criminal Welfare Prevention Act,
Part II, which was included as part of this legislation.
As you know, in 1996 the welfare reform legislation cracked down on
convicted criminals, prison inmates, receiving SSI payments, a concern
many taxpayers were shocked to discover. Since that legislation was
signed into law, as many as 500,000 criminals no longer qualify for
SSI. This legislation goes one step further and helps deny Social
Security payments to convicted criminals in prison.
I find one frustration of many senior citizens is why, they ask, do
we give Social Security benefits to convicted criminals in prison?
Thanks to the efforts of the gentleman from Kentucky (Mr. Bunning) and
the gentlewoman from Connecticut (Mrs. Kennelly), and of course the
gentleman from California (Mr. Herger), this new legislation will
potentially save taxpayers $3.5 billion over the next 7 years.
I am proud to support this legislation. It deserves bipartisan
support. It enables those who want into the workforce, and of course to
become self-sufficient, to accomplish that goal. We lend them a helping
hand. It deserves bipartisan support, and for that, I ask my colleagues
to lend that bipartisan support to H.R. 3433, the Ticket to Work and
Self-Sufficiency Act.
Mr. BUNNING. Mr. Speaker, may I ask how much time we have remaining?
The SPEAKER pro tempore (Mr. Pease). The gentleman from Kentucky (Mr.
Bunning) has 7 minutes remaining. The gentlewoman from Connecticut
(Mrs. Kennelly) has yielded back her time.
Mr. BUNNING. Mr. Speaker, I yield myself whatever time I may consume.
Mr. Speaker, I want to thank everyone for their cooperation in the
subcommittee; the gentlewoman from Connecticut (Mrs. Kennelly), who has
done a very good job in helping craft this legislation.
I think this is the type of legislation that we ought to work for on
a daily basis, a bipartisan piece of legislation that I am sure when it
goes to the other body, we will find people that will work to make sure
that we finally get this bill to the President's desk for his
signature.
I am very, very proud of the 3 years of work that we have put in on
this legislation to iron out the many differences that we had so that
we can bring a bill that everyone in the subcommittee and everyone in
the full Committee on Ways and Means supports.
Mr. Speaker, I yield whatever time he may consume to my good friend,
the gentleman from Ohio (Mr. Portman).
Mr. PORTMAN. Mr. Speaker, I want to start by commending the gentleman
from Kentucky (Mr. Bunning) for spending the last couple of years
putting together this legislation. It was a great example of rolling up
your sleeves and working on a tough problem that not many people want
to face.
I also want to congratulate the gentlewoman from Connecticut (Mrs.
Kennelly) who worked on a bipartisan basis with the gentleman from
Kentucky (Mr. Bunning).
We have heard over the last couple years on the subcommittee from a
lot of people who have disabilities but they truly want to work, and
technological as well as medical advances might permit them to work,
might make it possible for them to work. Unfortunately, the current
Social Security disability program has an inherent number of obstacles
and disincentives that make it pretty difficult and undesirable for
people to leave the rolls and seek gainful employment, because they
might lose cash or critical Medicare benefits.
This proposal is designed today to eliminate obstacles. I know there
has been a lot of discussion on it already. Again, I want to say it is
good common sense work. It took a lot of time to put together something
that makes sense. It is bipartisan. In the end, what is exciting about
this is it is going to help people to work, to be able to have gainful
employment, to be able to take care of themselves. It also, in the end,
saves the taxpayer money.
The information we have is that it will save the Social Security
system nearly $40 million over the next 5 years alone. Again, the key
to it is it can provide people with opportunities and means that they
have asked for to become productive members of society.
It is a good, fiscally responsible bill, and I want to congratulate
again the gentleman from Kentucky (Mr. Bunning) for spending the time
and effort to put this together, and his cosponsor, the gentlewoman
from Connecticut (Mrs. Kennelly).
Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise on behalf of the Ticket
to Work and Self-Sufficiency Act of 1998.
I support this bill because it facilitates the task of rejoining the
workforce for the over 8 million people with disabilities who are
currently collecting monies from Social Security Income (SSI) or Social
Security Disability Insurance (SSDI). More than 30,000 of these people
live in Harris County, in which my district sits.
I truly believe that the majority of people with disabilities want to
work. This act opens up a multitude of resources that they can use to
find work that were only sporadically available to them before. Under
current law, vocational counseling for people receiving SSI or SSDI can
only be done by state-run Vocational Rehabilitation (VR) agencies, who
are only able to serve about 10% of the disabled

[[Page H4024]]

people referred to them. This bill allows non-profit and private
organizations to help these people find meaningful and productive work.
Furthermore, by extending benefits to people who join this program
for two years, it alleviates a fear common to almost all people who
receive public assistance--that in reentering the workforce, they will
lose the entirety of their benefits. Without this loss of necessary
income to stop their progress, these people will no longer feel
inhibited to go out and find work.
I also support this Act because it furthers the goals of the
Americans with Disabilities Act (ADA)--to help disabled persons
participate in a meaningful way in our society. This bill, coupled with
the ADA, not only prohibits employers from discriminating against
disabled persons, but also gives those employers access to a new pool
of potential recruits, who are both qualified and willing to work.
Finally, I am happy to report to you that current estimates have this
bill saving the taxpayers $38 million over the next five years.
Colleagues, this bill is fiscally and socially beneficial for all
Americans.
I ask that all my colleagues join this bipartisan effort to give hope
and meaning to millions of people's lives.
Mr. RAMSTAD. Mr. Speaker, I rise today in strong support of H.R.
3433, the ``Ticket to Work and Self-Sufficiency Act.''
The National Council on Disability said it best in its report to the
105th Congress on removing barriers to work when it wrote, ``Social
Security programs can be transformed from a lifelong entitlement into
an investment in employment potential for thousands of individuals.''
Historically, fewer than 1% of people with disabilities leave the
Supplemental Security Income (SSI) and Social Security Disability
Income (SSDI) rolls following successful rehabilitation.
Individuals with disabilities have insufficient access to, and choice
of, the services and supports they need to achieve employment. In fact,
most SSI and SSDI beneficiaries are never even offered rehabilitation
services.
This legislation empowers individuals with disabilities to choose
from the state Vocational Rehabilitation agency or among private-sector
employment networks which provide an array of vocational
rehabilitation, employment and other support services to beneficiaries.
It also breaks through the complexities of the current system by
establishing a corps of work incentive specialists to accurately
disseminate information on SSI and SSDI work incentives.
While I wish the bill included a more comprehensive approach for
tackling the complex health care needs of individuals who return to
work, I am glad it does include a provision to at least extend Medicare
eligibility for two years during the program's implementation.
I look forward to continuing to work on these critical health care
issues during the conference with the Senate on this legislation, or
next year when the Commerce Committee looks at health care needs under
the Medicaid program.
Mr. Speaker, despite my concerns about the health care provisions in
this bill, I urge my colleagues to support this legislation before us
today because it begins the process of breaking down the barriers to
work for individuals with disabilities.
Preventing people from working run counter to the American spirit, a
spirit that thrives on individual achievements and the larger
contributions to society that result.
Creating work incentives for people with disabilities is not just
humane public policy, it is sound fiscal policy.
Removing the barriers that discourage people with disabilities from
working will mean they can earn a regular paycheck, pay taxes and move
off public assistance. It means they can return to work and live up to
their full potential.
Mr. Speaker, I want to thank Reps. Bunning and Kennelly for this work
in this area. Again, I urge members to vote yes on H.R. 3433.
The SPEAKER pro tempore. Pursuant to House Resolution 450, the
previous question is ordered on the bill, as amended.
The question is on the engrossment and third reading of the bill.
The bill was ordered to be engrossed and read a third time, and was
read the third time.
The SPEAKER pro tempore. The question is on passage of the bill.
The question was taken; and the Speaker pro tempore announced the
ayes appeared to have it.
Mr. BUNNING. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 5 of rule I, further
proceedings on this question will be postponed until tomorrow.

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