[Congressional Record (Bound Edition), Volume 145 (1999), Part 9]
[Senate]
[Pages 12954-12972]
[From the U.S. Government Publishing Office, www.gpo.gov]



                WORK INCENTIVES IMPROVEMENT ACT OF 1999

  The PRESIDING OFFICER. Under the previous order, the Senate will now 
proceed to the consideration of S. 331, which the clerk will report.
  The legislative assistant read as follows:

       A bill (S. 331) to amend the Social Security Act to expand 
     the availability of health care coverage for working 
     individuals with disabilities, to establish a Ticket to Work 
     and Self-Sufficiency Program in the Social Security 
     Administration to provide such individuals with meaningful 
     opportunities to work, and for other purposes.

  The Senate proceeded to consider the bill which had been reported 
from the Committee on Finance, with an amendment to strike all after 
the enacting clause and inserting in lieu thereof the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Work 
     Incentives Improvement Act of 1999''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.

         TITLE I--EXPANDED AVAILABILITY OF HEALTH CARE SERVICES

Sec. 101. Expanding State options under the medicaid program for 
              workers with disabilities.
Sec. 102. Continuation of medicare coverage for working individuals 
              with disabilities.
Sec. 103. Grants to develop and establish State infrastructures to 
              support working individuals with disabilities.
Sec. 104. Demonstration of coverage under the medicaid program of 
              workers with potentially severe disabilities.

  TITLE II--TICKET TO WORK AND SELF-SUFFICIENCY AND RELATED PROVISIONS

            Subtitle A--Ticket to Work and Self-Sufficiency

Sec. 201. Establishment of the Ticket to Work and Self-Sufficiency 
              Program.

             Subtitle B--Elimination of Work Disincentives

Sec. 211. Work activity standard as a basis for review of an 
              individual's disabled status.
Sec. 212. Expedited reinstatement of disability benefits.

     Subtitle C--Work Incentives Planning, Assistance, and Outreach

Sec. 221. Work incentives outreach program.
Sec. 222. State grants for work incentives assistance to disabled 
              beneficiaries.

             TITLE III--DEMONSTRATION PROJECTS AND STUDIES

Sec. 301. Permanent extension of disability insurance program 
              demonstration project authority.
Sec. 302. Demonstration projects providing for reductions in disability 
              insurance benefits based on earnings.
Sec. 303. Studies and reports.

            TITLE IV--MISCELLANEOUS AND TECHNICAL AMENDMENTS

Sec. 401. Technical amendments relating to drug addicts and alcoholics.
Sec. 402. Treatment of prisoners.
Sec. 403. Revocation by members of the clergy of exemption from Social 
              Security coverage.
Sec. 404. Additional technical amendment relating to cooperative 
              research or demonstration projects under titles II and 
              XVI.
Sec. 405. Authorization for State to permit annual wage reports.

                            TITLE V--REVENUE

Sec. 501. Modification to foreign tax credit carryback and carryover 
              periods.
Sec. 502. Limitation on use of non-accrual experience method of 
              accounting.
Sec. 503. Extension of Internal Revenue Service user fees.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress makes the following findings:
       (1) Health care is important to all Americans.
       (2) Health care is particularly important to individuals 
     with disabilities and special health care needs who often 
     cannot afford the insurance available to them through the 
     private market, are uninsurable by the plans available in the 
     private sector, and are at great risk of incurring very high 
     and economically devastating health care costs.
       (3) Americans with significant disabilities often are 
     unable to obtain health care insurance that provides coverage 
     of the services and supports that enable them to live 
     independently and enter or rejoin the workforce. Personal 
     assistance services (such as attendant services, personal 
     assistance with transportation to and from work, reader 
     services, job coaches, and related assistance) remove many of 
     the barriers between significant disability and work. 
     Coverage for such services, as well as for prescription 
     drugs, durable medical equipment, and basic health care are 
     powerful and proven tools for individuals with significant 
     disabilities to obtain and retain employment.
       (4) For individuals with disabilities, the fear of losing 
     health care and related services is one of the greatest 
     barriers keeping the individuals from maximizing their 
     employment, earning potential, and independence.
       (5) Individuals with disabilities who are beneficiaries 
     under title II or XVI of the Social Security Act (42 U.S.C. 
     401 et seq., 1381 et seq.) risk losing medicare or medicaid 
     coverage that is linked to their cash benefits, a risk that 
     is an equal, or greater, work disincentive than the loss of 
     cash benefits associated with working.
       (6) Currently, less than \1/2\ of 1 percent of social 
     security disability insurance and supplemental security 
     income beneficiaries cease to receive benefits as a result of 
     employment.
       (7) Beneficiaries have cited the lack of adequate 
     employment training and placement services as an additional 
     barrier to employment.
       (8) If an additional \1/2\ of 1 percent of the current 
     social security disability insurance (DI) and supplemental 
     security income (SSI) recipients were to cease receiving 
     benefits as a result of employment, the savings to the Social 
     Security Trust Funds in cash assistance would total 
     $3,500,000,000 over the worklife of the individuals.
       (b) Purposes.--The purposes of this Act are as follows:
       (1) To provide health care and employment preparation and 
     placement services to individuals with disabilities that will 
     enable those individuals to reduce their dependency on cash 
     benefit programs.
       (2) To encourage States to adopt the option of allowing 
     individuals with disabilities to purchase medicaid coverage 
     that is necessary to enable such individuals to maintain 
     employment.
       (3) To provide individuals with disabilities the option of 
     maintaining medicare coverage while working.
       (4) To establish a return to work ticket program that will 
     allow individuals with disabilities to seek the services 
     necessary to obtain and retain employment and reduce their 
     dependency on cash benefit programs.
         TITLE I--EXPANDED AVAILABILITY OF HEALTH CARE SERVICES

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

       (a) In General.--
       (1) State option to eliminate income, assets, and resource 
     limitations for workers

[[Page 12955]]

     with disabilities buying into medicaid.--Section 
     1902(a)(10)(A)(ii) of the Social Security Act (42 U.S.C. 
     1396a(a)(10)(A)(ii)) is amended--
       (A) in subclause (XIII), by striking ``or'' at the end;
       (B) in subclause (XIV), by adding ``or'' at the end; and
       (C) by adding at the end the following:

       ``(XV) who, but for earnings in excess of the limit 
     established under section 1905(q)(2)(B), would be considered 
     to be receiving supplemental security income and whose 
     assets, resources, and earned or unearned income (or both) do 
     not exceed such limitations (if any) as the State may 
     establish;''.

       (2) State option to provide opportunity for employed 
     individuals with a medically improved disability to buy into 
     medicaid.--
       (A) Eligibility.--Section 1902(a)(10) (A)(ii) of the Social 
     Security Act (42 U.S.C. 1396a(a)(10)(A)(ii)), as amended by 
     paragraph (1), is amended--
       (i) in subclause (XIV), by striking ``or'' at the end;
       (ii) in subclause (XV), by adding ``or'' at the end; and
       (iii) by adding at the end the following:

       ``(XVI) who are employed individuals with a medically 
     improved disability described in section 1905(v)(1) and whose 
     assets, resources, and earned or unearned income (or both) do 
     not exceed such limitations (if any) as the State may 
     establish, but only if the State provides medical assistance 
     to individuals described in subclause (XV);''.

       (B) Definition of employed individuals with a medically 
     improved disability.--Section 1905 of the Social Security Act 
     (42 U.S.C. 1396d) is amended by adding at the end the 
     following:
       ``(v)(1) The term `employed individual with a medically 
     improved disability' means an individual who--
       ``(A) is at least 16, but less than 65, years of age;
       ``(B) is employed (as defined in paragraph (2));
       ``(C) ceases to be eligible for medical assistance under 
     section 1902(a)(10)(A)(ii)(XV) because the individual, by 
     reason of medical improvement, is determined at the time of a 
     regularly scheduled continuing disability review to no longer 
     be eligible for benefits under section 223(d) or 1614(a)(3); 
     and
       ``(D) continues to have a severe medically determinable 
     impairment, as determined under regulations of the Secretary.
       ``(2) For purposes of paragraph (1), an individual is 
     considered to be `employed' if the individual--
       ``(A) is earning at least the applicable minimum wage 
     requirement under section 6 of the Fair Labor Standards Act 
     (29 U.S.C. 206) and working at least 40 hours per month; or
       ``(B) is engaged in a work effort that meets substantial 
     and reasonable threshold criteria for hours of work, wages, 
     or other measures, as defined by the State and approved by 
     the Secretary.''.
       (C) Conforming amendment.--Section 1905(a) of such Act (42 
     U.S.C. 1396d(a)) is amended in the matter preceding paragraph 
     (1)--
       (i) in clause (x), by striking ``or'' at the end;
       (ii) in clause (xi), by adding ``or'' at the end; and
       (iii) by inserting after clause (xi), the following:
       ``(xii) employed individuals with a medically improved 
     disability (as defined in subsection (v)),''.
       (3) State authority to impose income-related premiums and 
     cost-sharing.--Section 1916 of such Act (42 U.S.C. 1396o) is 
     amended--
       (A) in subsection (a), by striking ``The State plan'' and 
     inserting ``Subject to subsection (g), the State plan''; and
       (B) by adding at the end the following:
       ``(g) With respect to individuals provided medical 
     assistance only under subclause (XV) or (XVI) of section 
     1902(a)(10)(A)(ii), a State may (in a uniform manner for 
     individuals described in either such subclause)--
       ``(1) require such individuals to pay premiums or other 
     cost-sharing charges set on a sliding scale based on income 
     that the State may determine; and
       ``(2) require payment of 100 percent of such premiums in 
     the case of such an individual who has income that exceeds 
     250 percent of the income official poverty line (referred to 
     in subsection (c)(1)) applicable to a family of the size 
     involved.''.
       (4) Prohibition against supplantation of state funds and 
     state failure to maintain effort.--Section 1903(i) of such 
     Act (42 U.S.C. 1396b(i)) is amended--
       (A) by striking the period at the end of paragraph (18) and 
     inserting ``; or''; and
       (B) by inserting after such paragraph the following:
       ``(19) with respect to amounts expended for medical 
     assistance provided to an individual described in subclause 
     (XV) or (XVI) of section 1902(a)(10)(A)(ii) for a fiscal year 
     unless the State demonstrates to the satisfaction of the 
     Secretary that the level of State funds expended for such 
     fiscal year for programs to enable working individuals with 
     disabilities to work (other than for such medical assistance) 
     is not less than the level expended for such programs during 
     the most recent State fiscal year ending before the date of 
     enactment of this paragraph.''.
       (b) Conforming Amendments.--
       (1) Section 1903(f)(4) of the Social Security Act (42 
     U.S.C. 1396b(f)(4) is amended in the matter preceding 
     subparagraph (A) by inserting ``1902(a)(10)(A)(ii)(XV), 
     1902(a)(10)(A)(ii)(XVI)'' after ``1902(a)(10)(A)(ii)(X),''.
       (2) Section 1903(f)(4) of such Act, as amended by paragraph 
     (1), is amended by inserting ``1902(a)(10)(A)(ii)(XIII),'' 
     before ``1902(a)(10)(A)(ii)(XV)''.
       (c) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section apply to medical assistance 
     for items and services furnished on or after October 1, 1999.
       (2) Retroactivity of conforming amendment.--The amendment 
     made by subsection (b)(2) takes effect as if included in the 
     enactment of the Balanced Budget Act of 1997.

     SEC. 102. CONTINUATION OF MEDICARE COVERAGE FOR WORKING 
                   INDIVIDUALS WITH DISABILITIES.

       (a) Continuation of Coverage.--
       (1) In general.--Section 226 of the Social Security Act (42 
     U.S.C. 426) is amended--
       (A) in the third sentence of subsection (b), by inserting 
     ``, except as provided in subsection (j)'' after ``but not in 
     excess of 24 such months''; and
       (B) by adding at the end the following:
       ``(j) The 24-month limitation on deemed entitlement under 
     the third sentence of subsection (b) shall not apply--
       ``(1) for months occurring during the 10-year period 
     beginning with the first month that begins after the date of 
     enactment of this subsection; and
       ``(2) for subsequent months, in the case of an individual 
     who was entitled to benefits under subsection (b) as of the 
     last month of such 10-year period and would continue (but for 
     such 24-month limitation) to be so entitled.''.
       (2) Conforming amendment.--Section 1818A(a)(2)(C) of the 
     Social Security Act (42 U.S.C. 1395i-2a(a)(2)(C)) is 
     amended--
       (A) by striking ``solely''; and
       (B) by inserting ``or the expiration of the last month of 
     the 10-year period described in section 226(j)'' before the 
     semicolon.
       (b) GAO Report.--Not later than 8 years after the date of 
     the enactment of this Act, the Comptroller General of the 
     United States shall submit a report to Congress that--
       (1) examines the effectiveness and cost of subsection (j) 
     of section 226 of the Social Security Act (42 U.S.C. 426); 
     and
       (2) recommends whether that subsection should continue to 
     be applied beyond the 10-year period described in the 
     subsection.
       (c) Effective Date.--The amendments made by subsection (a) 
     apply to months beginning with the first month that begins 
     after the date of the enactment of this Act.
       (d) Treatment of Certain Individuals.--An individual 
     enrolled under section 1818A of the Social Security Act (42 
     U.S.C. 1395i-2a) shall be treated with respect to premium 
     payment obligations under such section as though the 
     individual had continued to be entitled to benefits under 
     section 226(b) of such Act for--
       (1) months described in section 226(j)(1) of such Act (42 
     U.S.C. 426(j)(1)) (as added by subsection (a)); and
       (2) subsequent months, in the case of an individual who was 
     so enrolled as of the last month described in section 
     226(j)(2) of such Act (42 U.S.C. 426(j)(2)) (as so added).

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

       (a) Establishment.--
       (1) In general.--The Secretary of Health and Human Services 
     (in this section referred to as the ``Secretary'') shall 
     award grants described in subsection (b) to States to support 
     the design, establishment, and operation of State 
     infrastructures that provide items and services to support 
     working individuals with disabilities.
       (2) Application.--In order to be eligible for an award of a 
     grant under this section, a State shall submit an application 
     to the Secretary at such time, in such manner, and containing 
     such information as the Secretary shall require.
       (3) Definition of state.--In this section, the term 
     ``State'' means each of the 50 States, the District of 
     Columbia, Puerto Rico, Guam, the United States Virgin 
     Islands, American Samoa, and the Commonwealth of the Northern 
     Mariana Islands.
       (b) Grants for Infrastructure and Outreach.--
       (1) In general.--Out of the funds appropriated under 
     subsection (e), the Secretary shall award grants to States 
     to--
       (A) support the establishment, implementation, and 
     operation of the State infrastructures described in 
     subsection (a); and
       (B) conduct outreach campaigns regarding the existence of 
     such infrastructures.
       (2) Eligibility for grants.--
       (A) In general.--No State may receive a grant under this 
     subsection unless the State--
       (i) has an approved amendment to the State plan under title 
     XIX of the Social Security Act (42 U.S.C. 1396 et seq.) that 
     provides medical assistance under such plan to individuals 
     described in section 1902(a)(10)(A)(ii)(XV) of the Social 
     Security Act (42 U.S.C. 1396a(a)(10)(A)(ii)(XV)); and
       (ii) demonstrates to the satisfaction of the Secretary that 
     the State makes personal assistance services available under 
     the State plan under title XIX of the Social Security Act (42 
     U.S.C. 1396 et seq.) to the extent necessary to enable 
     individuals described in clause (i) to remain employed (as 
     determined under section 1905(v)(2) of the Social Security 
     Act (42 U.S.C. 1396d(v)(2))).
       (B) Definition of personal assistance services.--In this 
     paragraph, the term ``personal assistance services'' means a 
     range of services,

[[Page 12956]]

     provided by 1 or more persons, designed to assist an 
     individual with a disability to perform daily activities on 
     and off the job that the individual would typically perform 
     if the individual did not have a disability. Such services 
     shall be designed to increase the individual's control in 
     life and ability to perform everyday activities on or off the 
     job.
       (3) Determination of awards.--
       (A) In general.--Subject to subparagraph (B), the Secretary 
     shall determine a formula for awarding grants to States under 
     this section that provides special consideration to States 
     that provide medical assistance under title XIX of the Social 
     Security Act to individuals described in section 
     1902(a)(10)(A)(ii)(XVI) of that Act (42 U.S.C. 
     1396a(a)(10)(A)(ii)(XVI)).
       (B) Award limits.--
       (i) Minimum awards.--

       (I) In general.--Subject to subclause (II), no State with 
     an approved application under this section shall receive a 
     grant for a fiscal year that is less than $500,000.
       (II) Pro rata reductions.--If the funds appropriated under 
     subsection (e) for a fiscal year are not sufficient to pay 
     each State with an application approved under this section 
     the minimum amount described in subclause (I), the Secretary 
     shall pay each such State an amount equal to the pro rata 
     share of the amount made available.

       (ii) Maximum awards.--No State with an application that has 
     been approved under this section shall receive a grant for a 
     fiscal year that exceeds 15 percent of the total expenditures 
     by the State (including the reimbursed Federal share of such 
     expenditures) for medical assistance for individuals eligible 
     under subclause (XV) and (XVI) of section 1902(a)(10)(A)(ii) 
     of the Social Security Act (42 U.S.C. 1396a(a)(10)(A)(ii)), 
     as estimated by the State and approved by the Secretary.
       (c) Availability of Funds.--
       (1) Funds awarded to states.--Funds awarded to a State 
     under a grant made under this section for a fiscal year shall 
     remain available until expended.
       (2) Funds not awarded to states.--Funds not awarded to 
     States in the fiscal year for which they are appropriated 
     shall remain available in succeeding fiscal years for 
     awarding by the Secretary.
       (d) Annual Report.--A State that is awarded a grant under 
     this section shall submit an annual report to the Secretary 
     on the use of funds provided under the grant. Each report 
     shall include the percentage increase in the number of title 
     II disability beneficiaries, as defined in section 1148(k)(3) 
     of the Social Security Act (as amended by section 201) in the 
     State, and title XVI disability beneficiaries, as defined in 
     section 1148(k)(4) of the Social Security Act (as so amended) 
     in the State who return to work.
       (e) Appropriation.--
       (1) In general.--Out of any funds in the Treasury not 
     otherwise appropriated, there is appropriated to make grants 
     under this section--
       (A) for fiscal year 2000, $20,000,000;
       (B) for fiscal year 2001, $25,000,000;
       (C) for fiscal year 2002, $30,000,000;
       (D) for fiscal year 2003, $35,000,000;
       (E) for fiscal year 2004, $40,000,000; and
       (F) for each of fiscal years 2005 through 2010, the amount 
     appropriated for the preceding fiscal year increased by the 
     percentage increase (if any) in the Consumer Price Index for 
     All Urban Consumers (United States city average) for the 
     preceding fiscal year.
       (2) Budget authority.--This subsection constitutes budget 
     authority in advance of appropriations Acts and represents 
     the obligation of the Federal Government to provide for the 
     payment of the amounts appropriated under paragraph (1).
       (f) Recommendation.--Not later than October 1, 2009, the 
     Secretary, in consultation with the Work Incentives Advisory 
     Panel established under section 201(f), shall submit a 
     recommendation to the Committee on Commerce of the House of 
     Representatives and the Committee on Finance of the Senate 
     regarding whether the grant program established under this 
     section should be continued after fiscal year 2010.

     SEC. 104. DEMONSTRATION OF COVERAGE UNDER THE MEDICAID 
                   PROGRAM OF WORKERS WITH POTENTIALLY SEVERE 
                   DISABILITIES.

       (a) State Application.--A State may apply to the Secretary 
     of Health and Human Services (in this section referred to as 
     the ``Secretary'') for approval of a demonstration project 
     (in this section referred to as a ``demonstration project'') 
     under which up to a specified maximum number of individuals 
     who are workers with a potentially severe disability (as 
     defined in subsection (b)(1)) are provided medical assistance 
     equal to that provided under section 1905(a) of the Social 
     Security Act (42 U.S.C. 1396d(a)) to individuals described in 
     section 1902(a)(10)(A)(ii)(XV) of that Act (42 U.S.C. 
     1396a(a)(10)(A)(ii)(XV)).
       (b) Worker With a Potentially Severe Disability Defined.--
     For purposes of this section--
       (1) In general.--The term ``worker with a potentially 
     severe disability'' means, with respect to a demonstration 
     project, an individual who--
       (A) is at least 16, but less than 65, years of age;
       (B) has a specific physical or mental impairment that, as 
     defined by the State under the demonstration project, is 
     reasonably expected, but for the receipt of items and 
     services described in section 1905(a) of the Social Security 
     Act (42 U.S.C. 1396d(a)), to become blind or disabled (as 
     defined under section 1614(a) of the Social Security Act (42 
     U.S.C. 1382c(a))); and
       (C) is employed (as defined in paragraph (2)).
       (2) Definition of employed.--An individual is considered to 
     be ``employed'' if the individual--
       (A) is earning at least the applicable minimum wage 
     requirement under section 6 of the Fair Labor Standards Act 
     (29 U.S.C. 206) and working at least 40 hours per month; or
       (B) is engaged in a work effort that meets substantial and 
     reasonable threshold criteria for hours of work, wages, or 
     other measures, as defined under the demonstration project 
     and approved by the Secretary.
       (c) Approval of Demonstration Projects.--
       (1) In general.--Subject to paragraph (3), the Secretary 
     shall approve applications under subsection (a) that meet the 
     requirements of paragraph (2) and such additional terms and 
     conditions as the Secretary may require. The Secretary may 
     waive the requirement of section 1902(a)(1) of the Social 
     Security Act (42 U.S.C. 1396a(a)(1)) to allow for sub-State 
     demonstrations.
       (2) Terms and conditions of demonstration projects.--The 
     Secretary may not approve a demonstration project under this 
     section unless the State provides assurances satisfactory to 
     the Secretary that the following conditions are or will be 
     met:
       (A) Election of optional category.--The State has elected 
     to provide coverage under its plan under title XIX of the 
     Social Security Act of individuals described in section 
     1902(a)(10)(A)(ii)(XV) of the Social Security Act (42 U.S.C. 
     1396a(a)(10)(A)(ii)(XV)).
       (B) Maintenance of state effort.--Federal funds paid to a 
     State pursuant to this section must be used to supplement, 
     but not supplant, the level of State funds expended for 
     workers with potentially severe disabilities under programs 
     in effect for such individuals at the time the demonstration 
     project is approved under this section.
       (C) Independent evaluation.--The State provides for an 
     independent evaluation of the project.
       (3) Limitations on federal funding.--
       (A) Appropriation.--
       (i) In general.--Out of any funds in the Treasury not 
     otherwise appropriated, there is appropriated to carry out 
     this section--

       (I) for fiscal year 2000, $70,000,000;
       (II) for fiscal year 2001, $73,000,000;
       (III) for fiscal year 2002, $77,000,000; and
       (IV) for fiscal year 2003, $80,000,000.

       (ii) Budget authority.--Clause (i) constitutes budget 
     authority in advance of appropriations Acts and represents 
     the obligation of the Federal Government to provide for the 
     payment of the amounts appropriated under clause (i).
       (B) Limitation on payments.--In no case may--
       (i) the aggregate amount of payments made by the Secretary 
     to States under this section exceed $300,000,000; or
       (ii) payments be provided by the Secretary for a fiscal 
     year after fiscal year 2005.
       (C) Funds allocated to states.--The Secretary shall 
     allocate funds to States based on their applications and the 
     availability of funds. Funds allocated to a State under a 
     grant made under this section for a fiscal year shall remain 
     available until expended.
       (D) Funds not allocated to states.--Funds not allocated to 
     States in the fiscal year for which they are appropriated 
     shall remain available in succeeding fiscal years for 
     allocation by the Secretary using the allocation formula 
     established under this section.
       (E) Payments to states.--The Secretary shall pay to each 
     State with a demonstration project approved under this 
     section, from its allocation under subparagraph (C), an 
     amount for each quarter equal to the Federal medical 
     assistance percentage (as defined in section 1905(b) of the 
     Social Security Act (42 U.S.C. 1395d(b)) of expenditures in 
     the quarter for medical assistance provided to workers with a 
     potentially severe disability.
       (d) Recommendation.--Not later than October 1, 2002, the 
     Secretary shall submit a recommendation to the Committee on 
     Commerce of the House of Representatives and the Committee on 
     Finance of the Senate regarding whether the demonstration 
     project established under this section should be continued 
     after fiscal year 2003.
       (e) State Defined.--In this section, the term ``State'' has 
     the meaning given such term for purposes of title XIX of the 
     Social Security Act (42 U.S.C. 1396 et seq.).
  TITLE II--TICKET TO WORK AND SELF-SUFFICIENCY AND RELATED PROVISIONS
            Subtitle A--Ticket to Work and Self-Sufficiency

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

       (a) In General.--Part A of title XI of the Social Security 
     Act (42 U.S.C. 1301 et seq.) is amended by adding after 
     section 1147 (as added by section 8 of the Noncitizen Benefit 
     Clarification and Other Technical Amendments Act of 1998 
     (Public Law 105-306; 112 Stat. 2928)) the following:


             ``ticket to work and self-sufficiency program

       ``Sec. 1148. (a) In General.--The Commissioner 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

[[Page 12957]]

     which is willing to provide such services to the beneficiary.
       ``(b) Ticket System.--
       ``(1) Distribution of tickets.--The Commissioner may issue 
     a ticket to work and self-sufficiency to disabled 
     beneficiaries for participation in the Program.
       ``(2) Assignment of tickets.--A disabled beneficiary 
     holding a ticket to work and self-sufficiency may assign the 
     ticket to any employment network of the beneficiary's choice 
     which is serving under the Program and is willing to accept 
     the assignment.
       ``(3) Ticket terms.--A ticket issued under paragraph (1) 
     shall consist of a document which evidences the 
     Commissioner's agreement to pay (as provided in paragraph 
     (4)) an employment network, which is serving under the 
     Program and to which such ticket is assigned by the 
     beneficiary, for such employment services, vocational 
     rehabilitation services, and other support services as the 
     employment network may provide to the beneficiary.
       ``(4) Payments to employment networks.--The Commissioner 
     shall pay an employment network under the Program in 
     accordance with the outcome payment system under subsection 
     (h)(2) or under the outcome-milestone payment system under 
     subsection (h)(3) (whichever is elected pursuant to 
     subsection (h)(1)). An employment network may not request or 
     receive compensation for such services from the beneficiary.
       ``(c) State Participation.--
       ``(1) In general.--Each State agency administering or 
     supervising the administration of the State plan approved 
     under title I of the Rehabilitation Act of 1973 may elect to 
     participate in the Program as an employment network with 
     respect to a disabled beneficiary. If the State agency does 
     elect to participate in the Program, the State agency also 
     shall elect to be paid under the outcome payment system or 
     the outcome-milestone payment system in accordance with 
     subsection (h)(1). With respect to a disabled beneficiary 
     that the State agency does not elect to have participate in 
     the Program, the State agency shall be paid for services 
     provided to that beneficiary under the system for payment 
     applicable under section 222(d) and subsections (d) and (e) 
     of section 1615. The Commissioner shall provide for periodic 
     opportunities for exercising such elections (and 
     revocations).
       ``(2) Effect of participation by state agency.--
       ``(A) State agencies participating.--In any case in which a 
     State agency described in paragraph (1) elects under that 
     paragraph to participate in the Program, the employment 
     services, vocational rehabilitation services, and other 
     support services which, upon assignment of tickets to work 
     and self-sufficiency, are provided to disabled beneficiaries 
     by the State agency acting as an employment network shall be 
     governed by plans for vocational rehabilitation services 
     approved under title I of the Rehabilitation Act of 1973.
       ``(B) State agencies administering maternal and child 
     health services programs.--Subparagraph (A) shall not apply 
     with respect to any State agency administering a program 
     under title V of this Act.
       ``(3) Special requirements applicable to cross-referral to 
     certain state agencies.--
       ``(A) In general.--In any case in which an employment 
     network has been assigned a ticket to work and self-
     sufficiency by a disabled beneficiary, no State agency shall 
     be deemed required, under this section, title I of the 
     Workforce Investment Act of 1998, title I of the 
     Rehabilitation Act of 1973, or a State plan approved under 
     such title, to accept any referral of such disabled 
     beneficiary from such employment network unless such 
     employment network and such State agency have entered into a 
     written agreement that meets the requirements of subparagraph 
     (B). Any beneficiary who has assigned a ticket to work and 
     self-sufficiency to an employment network that has not 
     entered into such a written agreement with such a State 
     agency may not access vocational rehabilitation services 
     under title I of the Rehabilitation Act of 1973 until such 
     time as the beneficiary is reassigned to a State vocational 
     rehabilitation agency by the Program Manager.
       ``(B) Terms of agreement.--An agreement required by 
     subparagraph (A) shall specify, in accordance with 
     regulations prescribed pursuant to subparagraph (C)--
       ``(i) the extent (if any) to which the employment network 
     holding the ticket will provide to the State agency--

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

       ``(ii) any other conditions that may be required by such 
     regulations.
       ``(C) Regulations.--The Commissioner 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 agreement required under 
     subparagraph (A) or without having entered into such an 
     agreement.
       ``(d) Responsibilities of the Commissioner.--
       ``(1) Selection and qualifications of program managers.--
     The Commissioner shall enter into agreements with 1 or more 
     organizations in the private or public sector for service as 
     a program manager to assist the Commissioner in administering 
     the Program. Any such program manager shall be selected by 
     means of a competitive bidding process, from among 
     organizations in the private or public sector with available 
     expertise and experience in the field of vocational 
     rehabilitation and employment services.
       ``(2) Tenure, renewal, and early termination.--Each 
     agreement entered into under paragraph (1) shall provide for 
     early termination upon failure to meet performance standards 
     which shall be specified in the agreement and which shall be 
     weighted to take into account any performance in prior terms. 
     Such performance standards shall include--
       ``(A) measures for ease of access by beneficiaries to 
     services; and
       ``(B) measures for determining the extent to which failures 
     in obtaining services for beneficiaries fall within 
     acceptable parameters, as determined by the Commissioner.
       ``(3) Preclusion from direct participation in delivery of 
     services in own service area.--Agreements under paragraph (1) 
     shall preclude--
       ``(A) direct participation by a program manager in the 
     delivery of employment services, vocational rehabilitation 
     services, or other support services to beneficiaries in the 
     service area covered by the program manager's agreement; and
       ``(B) the holding by a program manager of a financial 
     interest in an employment network or service provider which 
     provides services in a geographic area covered under the 
     program manager's agreement.
       ``(4) Selection of employment networks.--
       ``(A) In general.--The Commissioner shall select and enter 
     into agreements with employment networks for service under 
     the Program. Such employment networks shall be in addition to 
     State agencies serving as employment networks pursuant to 
     elections under subsection (c).
       ``(B) Alternate participants.--In any State where the 
     Program is being implemented, the Commissioner shall enter 
     into an agreement with any alternate participant that is 
     operating under the authority of section 222(d)(2) in the 
     State as of the date of enactment of this section and chooses 
     to serve as an employment network under the Program.
       ``(5) Termination of agreements with employment networks.--
     The Commissioner shall terminate agreements with employment 
     networks for inadequate performance, as determined by the 
     Commissioner.
       ``(6) Quality assurance.--The Commissioner shall provide 
     for such periodic reviews as are necessary to provide for 
     effective quality assurance in the provision of services by 
     employment networks. The Commissioner shall solicit and 
     consider the views of consumers and the program manager under 
     which the employment networks serve and shall consult with 
     providers of services to develop performance measurements. 
     The Commissioner shall ensure that the results of the 
     periodic reviews are made available to beneficiaries who are 
     prospective service recipients as they select employment 
     networks. The Commissioner shall ensure that the periodic 
     surveys of beneficiaries receiving services under the Program 
     are designed to measure customer service satisfaction.
       ``(7) Dispute resolution.--The Commissioner shall provide 
     for a mechanism for resolving disputes between beneficiaries 
     and employment networks, between program managers and 
     employment networks, and between program managers and 
     providers of services. The Commissioner shall afford a party 
     to such a dispute a reasonable opportunity for a full and 
     fair review of the matter in dispute.
       ``(e) Program Managers.--
       ``(1) In general.--A program manager shall conduct tasks 
     appropriate to assist the Commissioner in carrying out the 
     Commissioner's duties in administering the Program.
       ``(2) Recruitment of employment networks.--A program 
     manager shall recruit, and recommend for selection by the 
     Commissioner, employment networks for service under the 
     Program. The program manager shall carry out such recruitment 
     and provide such recommendations, and shall monitor all 
     employment networks serving in the Program in the geographic 
     area covered under the program manager's agreement, to the 
     extent necessary and appropriate to ensure that adequate 
     choices of services are made available to beneficiaries. 
     Employment networks may serve under the Program only pursuant 
     to an agreement entered into with the Commissioner under the 
     Program incorporating the applicable provisions of this 
     section and regulations thereunder, and the program manager 
     shall provide and maintain assurances to the Commissioner 
     that payment by the Commissioner to employment networks 
     pursuant to this section is warranted based on compliance by 
     such employment networks with the terms of such agreement and 
     this section. The program manager shall not impose numerical 
     limits on the number of employment networks to be recommended 
     pursuant to this paragraph.
       ``(3) Facilitation of access by beneficiaries to employment 
     networks.--A program manager shall facilitate access by 
     beneficiaries to employment networks. The program manager 
     shall ensure that each beneficiary is allowed changes in 
     employment networks 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

[[Page 12958]]

     such lists generally available to the public. The program 
     manager shall ensure that all information provided to 
     disabled beneficiaries pursuant to this paragraph is provided 
     in accessible formats.
       ``(4) Ensuring availability of adequate services.--The 
     program manager shall ensure that employment services, 
     vocational rehabilitation services, and other support 
     services are provided to beneficiaries throughout the 
     geographic area covered under the program manager's 
     agreement, including rural areas.
       ``(5) Reasonable access to services.--The program manager 
     shall take such measures as are necessary to ensure that 
     sufficient employment networks are available and that each 
     beneficiary receiving services under the Program has 
     reasonable access to employment services, vocational 
     rehabilitation services, and other support services. Services 
     provided under the Program may include case management, work 
     incentives planning, supported employment, career planning, 
     career plan development, vocational assessment, job training, 
     placement, followup services, and such other services as may 
     be specified by the Commissioner under the Program. The 
     program manager shall ensure that such services are available 
     in each service area.
       ``(f) Employment Networks.--
       ``(1) Qualifications for employment networks.--
       ``(A) In general.--Each employment network serving under 
     the Program shall consist of an agency or instrumentality of 
     a State (or a political subdivision thereof) or a private 
     entity that assumes responsibility for the coordination and 
     delivery of services under the Program to individuals 
     assigning to the employment network tickets to work and self-
     sufficiency issued under subsection (b).
       ``(B) One-stop delivery systems.--An employment network 
     serving under the Program may consist of a one-stop delivery 
     system established under subtitle B of title I of the 
     Workforce Investment Act of 1998.
       ``(C) Compliance with selection criteria.--No employment 
     network may serve under the Program unless it meets and 
     maintains compliance with both general selection criteria 
     (such as professional and educational qualifications (where 
     applicable)) and specific selection criteria (such as 
     substantial expertise and experience in providing relevant 
     employment services and supports).
       ``(D) Single or associated providers allowed.--An 
     employment network shall consist of either a single provider 
     of such services or of an association of such providers 
     organized so as to combine their resources into a single 
     entity. An employment network may meet the requirements of 
     subsection (e)(4) by providing services directly, or by 
     entering into agreements with other individuals or entities 
     providing appropriate employment services, vocational 
     rehabilitation services, or other support services.
       ``(2) Requirements relating to provision of services.--Each 
     employment network serving under the Program shall be 
     required under the terms of its agreement with the 
     Commissioner to--
       ``(A) serve prescribed service areas; and
       ``(B) take such measures as are necessary to ensure that 
     employment services, vocational rehabilitation services, and 
     other support services provided under the Program by, or 
     under agreements entered into with, the employment network 
     are provided under appropriate individual work plans meeting 
     the requirements of subsection (g).
       ``(3) Annual financial reporting.--Each employment network 
     shall meet financial reporting requirements as prescribed by 
     the Commissioner.
       ``(4) Periodic outcomes reporting.--Each employment network 
     shall prepare periodic reports, on at least an annual basis, 
     itemizing for the covered period specific outcomes achieved 
     with respect to specific services provided by the employment 
     network. Such reports shall conform to a national model 
     prescribed under this section. Each employment network shall 
     provide a copy of the latest report issued by the employment 
     network pursuant to this paragraph to each beneficiary upon 
     enrollment under the Program for services to be received 
     through such employment network. Upon issuance of each report 
     to each beneficiary, a copy of the report shall be maintained 
     in the files of the employment network. The program manager 
     shall ensure that copies of all such reports issued under 
     this paragraph are made available to the public under 
     reasonable terms.
       ``(g) Individual Work Plans.--
       ``(1) Requirements.--Each employment network shall--
       ``(A) take such measures as are necessary to ensure that 
     employment services, vocational rehabilitation services, and 
     other support services provided under the Program by, or 
     under agreements entered into with, the employment network 
     are provided under appropriate individual work plans that 
     meet the requirements of subparagraph (C);
       ``(B) develop and implement each such individual work plan 
     in partnership with each beneficiary receiving such services 
     in a manner that affords the beneficiary the opportunity to 
     exercise informed choice in selecting an employment goal and 
     specific services needed to achieve that employment goal;
       ``(C) ensure that each individual work plan includes at 
     least--
       ``(i) a statement of the vocational goal developed with the 
     beneficiary;
       ``(ii) a statement of the services and supports that have 
     been deemed necessary for the beneficiary to accomplish that 
     goal;
       ``(iii) a statement of any terms and conditions related to 
     the provision of such services and supports; and
       ``(iv) a statement of understanding regarding the 
     beneficiary's rights under the Program (such as the right to 
     retrieve the ticket to work and self-sufficiency if the 
     beneficiary is dissatisfied with the services being provided 
     by the employment network) and remedies available to the 
     individual, including information on the availability of 
     advocacy services and assistance in resolving disputes 
     through the State grant program authorized under section 
     1150;
       ``(D) provide a beneficiary the opportunity to amend the 
     individual work plan if a change in circumstances 
     necessitates a change in the plan; and
       ``(E) make each beneficiary's individual work plan 
     available to the beneficiary in, as appropriate, an 
     accessible format chosen by the beneficiary.
       ``(2) Effective upon written approval.--A beneficiary's 
     individual work plan shall take effect upon written approval 
     by the beneficiary or a representative of the beneficiary and 
     a representative of the employment network that, in providing 
     such written approval, acknowledges assignment of the 
     beneficiary's ticket to work and self-sufficiency.
       ``(h) Employment Network Payment Systems.--
       ``(1) Election of payment system by employment networks.--
       ``(A) In general.--The Program shall provide for payment 
     authorized by the Commissioner to employment networks under 
     either an outcome payment system or an outcome-milestone 
     payment system. Each employment network shall elect which 
     payment system will be utilized by the employment network, 
     and, for such period of time as such election remains in 
     effect, the payment system so elected shall be utilized 
     exclusively in connection with such employment network 
     (except as provided in subparagraph (B)).
       ``(B) No change in method of payment for beneficiaries with 
     tickets already assigned to the employment networks.--Any 
     election of a payment system by an employment network that 
     would result in a change in the method of payment to the 
     employment network for services provided to a beneficiary who 
     is receiving services from the employment network at the time 
     of the election shall not be effective with respect to 
     payment for services provided to that beneficiary and the 
     method of payment previously selected shall continue to apply 
     with respect to such services.
       ``(2) Outcome payment system.--
       ``(A) In general.--The outcome payment system shall consist 
     of a payment structure governing employment networks electing 
     such system under paragraph (1)(A) which meets the 
     requirements of this paragraph.
       ``(B) Payments made during outcome payment period.--The 
     outcome payment system shall provide for a schedule of 
     payments to an employment network in connection with each 
     individual who is a beneficiary for each month during the 
     individual's outcome payment period for which benefits 
     (described in paragraphs (3) and (4) of subsection (k)) are 
     not payable to such individual because of work or earnings.
       ``(C) Computation of payments to employment network.--The 
     payment schedule of the outcome payment system shall be 
     designed so that--
       ``(i) the payment for each of the 60 months during the 
     outcome payment period for which benefits (described in 
     paragraphs (3) and (4) of subsection (k)) are not payable is 
     equal to a fixed percentage of the payment calculation base 
     for the calendar year in which such month occurs; and
       ``(ii) such fixed percentage is set at a percentage which 
     does not exceed 40 percent.
       ``(3) Outcome-milestone payment system.--
       ``(A) In general.--The outcome-milestone payment system 
     shall consist of a payment structure governing employment 
     networks electing such system under paragraph (1)(A) which 
     meets the requirements of this paragraph.
       ``(B) Early payments upon attainment of milestones in 
     advance of outcome payment periods.--The outcome-milestone 
     payment system shall provide for 1 or more milestones with 
     respect to beneficiaries receiving services from an 
     employment network under the Program that are directed toward 
     the goal of permanent employment. Such milestones shall form 
     a part of a payment structure that provides, in addition to 
     payments made during outcome payment periods, payments made 
     prior to outcome payment periods in amounts based on the 
     attainment of such milestones.
       ``(C) Limitation on total payments to employment network.--
     The payment schedule of the outcome-milestone payment system 
     shall be designed so that the total of the payments to the 
     employment network with respect to each beneficiary is less 
     than, on a net present value basis (using an interest rate 
     determined by the Commissioner that appropriately reflects 
     the cost of funds faced by providers), the total amount to 
     which payments to the employment network with respect to the 
     beneficiary would be limited if the employment network were 
     paid under the outcome payment system.
       ``(4) Definitions.--In this subsection:
       ``(A) Payment calculation base.--The term `payment 
     calculation base' means, for any calendar year--
       ``(i) in connection with a title II disability beneficiary, 
     the average disability insurance benefit payable under 
     section 223 for all beneficiaries for months during the 
     preceding calendar year; and

[[Page 12959]]

       ``(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 age 18 but have not attained age 65.
       ``(B) Outcome payment period.--The term `outcome payment 
     period' means, in connection with any individual who had 
     assigned a ticket to work and self-sufficiency to an 
     employment network under the Program, a period--
       ``(i) beginning with the first month, ending after the date 
     on which such ticket was assigned to the employment network, 
     for which benefits (described in paragraphs (3) and (4) of 
     subsection (k)) are not payable to such individual by reason 
     of engagement in substantial gainful activity or by reason of 
     earnings from work activity; and
       ``(ii) ending with the 60th month (consecutive or 
     otherwise), ending after such date, for which such benefits 
     are not payable to such individual by reason of engagement in 
     substantial gainful activity or by reason of earnings from 
     work activity.
       ``(5) Periodic review and alterations of prescribed 
     schedules.--
       ``(A) Percentages and periods.--The Commissioner shall 
     periodically review the percentage specified in paragraph 
     (2)(C), the total payments permissible under paragraph 
     (3)(C), and the period of time specified in paragraph (4)(B) 
     to determine whether such percentages, such permissible 
     payments, and such period provide an adequate incentive for 
     employment networks to assist beneficiaries to enter the 
     workforce, while providing for appropriate economies. The 
     Commissioner may alter such percentage, such total 
     permissible payments, or such period of time to the extent 
     that the Commissioner determines, on the basis of the 
     Commissioner's review under this paragraph, that such an 
     alteration would better provide the incentive and economies 
     described in the preceding sentence.
       ``(B) Number and amounts 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 Work Incentives Advisory Panel established under section 
     201(f) of the Work Incentives Improvement Act of 1999, and 
     other reliable sources. The Commissioner may from time to 
     time alter the number and amounts of milestone payments 
     initially established by the Commissioner pursuant to this 
     section to the extent that the Commissioner determines that 
     such an alteration would allow an adequate incentive for 
     employment networks to assist beneficiaries to enter the 
     workforce. Such alteration shall be based on information 
     provided to the Commissioner by program managers, the Work 
     Incentives Advisory Panel established under section 201(f) of 
     the Work Incentives Improvement Act of 1999, or other 
     reliable sources.
       ``(i) Suspension of Disability Reviews.--During any period 
     for which an individual is using, as defined by the 
     Commissioner, a ticket to work and self-sufficiency issued 
     under this section, the Commissioner (and any applicable 
     State agency) may not initiate a continuing disability review 
     or other review under section 221 of whether the individual 
     is or is not under a disability or a review under title XVI 
     similar to any such review under section 221.
       ``(j) Allocation of Costs.--
       ``(1) Payments to employment networks.--Payments to 
     employment networks (including State agencies that elect to 
     participate in the Program as an employment network) shall be 
     made from the Federal Old-Age and Survivors Insurance Trust 
     Fund or the Federal Disability Insurance Trust Fund, as 
     appropriate, in the case of ticketed title II disability 
     beneficiaries who return to work, or from the appropriation 
     made available for making supplemental security income 
     payments under title XVI, in the case of title XVI disability 
     beneficiaries who return to work. With respect to ticketed 
     beneficiaries who concurrently are entitled to benefits under 
     title II and eligible for payments under title XVI who return 
     to work, the Commissioner shall allocate the cost of payments 
     to employment networks to which the tickets of such 
     beneficiaries have been assigned among such Trust Funds and 
     appropriation, as appropriate.
       ``(2) Administrative expenses.--The costs of administering 
     this section (other than payments to employment networks) 
     shall be paid from amounts made available for the 
     administration of title II and amounts made available for the 
     administration of title XVI, and shall be allocated among 
     those amounts as appropriate.
       ``(k) Definitions.--In this section:
       ``(1) Commissioner.--The term `Commissioner' means the 
     Commissioner of Social Security.
       ``(2) Disabled beneficiary.--The term `disabled 
     beneficiary' means a title II disability beneficiary or a 
     title XVI disability beneficiary.
       ``(3) Title ii disability beneficiary.--The term `title II 
     disability beneficiary' means an individual entitled to 
     disability insurance benefits under section 223 or to monthly 
     insurance benefits under section 202 based on such 
     individual's disability (as defined in section 223(d)). An 
     individual is a title II disability beneficiary for each 
     month for which such individual is entitled to such benefits.
       ``(4) Title xvi disability beneficiary.--The term `title 
     XVI disability beneficiary' means an individual eligible for 
     supplemental security income benefits under title XVI on the 
     basis of blindness (within the meaning of section 1614(a)(2)) 
     or disability (within the meaning of section 1614(a)(3)). An 
     individual is a title XVI disability beneficiary for each 
     month for which such individual is eligible for such 
     benefits.
       ``(5) Supplemental security income benefit under title 
     xvi.--The term `supplemental security income benefit under 
     title XVI' means a cash benefit under section 1611 or 
     1619(a), and does not include a State supplementary payment, 
     administered federally or otherwise.
       ``(l) Regulations.--Not later than 1 year after the date of 
     enactment of this section, the Commissioner shall prescribe 
     such regulations as are necessary to carry out the provisions 
     of this section.
       ``(m) Reauthorization of Program.--
       ``(1) In general.--The Program established under this 
     section shall terminate on the date that is 5 years after the 
     date that the Commissioner commences implementation of the 
     Program.
       ``(2) Assurance of outcome payment period.--Notwithstanding 
     paragraph (1)--
       ``(A) any individual who has initiated a work plan in 
     accordance with subsection (g) may use services provided 
     under the Program in accordance with this section; and
       ``(B) any employment network that provides services to such 
     an individual shall receive payments for such services,

     during the individual's outcome payment period (as defined in 
     paragraph (4)(B) of subsection (h), including any alteration 
     of such period in accordance with paragraph (5) of that 
     subsection).''.
       (b) Conforming Amendments.--
       (1) Amendments to title ii.--
       (A) Section 221(i) of the Social Security Act (42 U.S.C. 
     421(i)) is amended by adding at the end the following:
       ``(5) For suspension of reviews under this subsection in 
     the case of an individual using a ticket to work and self-
     sufficiency, see section 1148(i).''.
       (B) Section 222(a) of the Social Security Act (42 U.S.C. 
     422(a)) is repealed.
       (C) Section 222(b) of the Social Security Act (42 U.S.C. 
     422(b)) is repealed.
       (D) Section 225(b)(1) of the Social Security Act (42 U.S.C. 
     425(b)(1)) is amended by striking ``a program of vocational 
     rehabilitation services'' and inserting ``a program 
     consisting of the Ticket to Work and Self-Sufficiency Program 
     under section 1148 or another program of vocational 
     rehabilitation services, employment services, or other 
     support services''.
       (2) Amendments to title xvi.--
       (A) Section 1615(a) of the Social Security 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 the Social Security Act (42 U.S.C. 
     1382d(c)) is repealed.
       (C) Section 1631(a)(6)(A) of the Social Security Act (42 
     U.S.C. 1383(a)(6)(A)) is amended by striking ``a program of 
     vocational rehabilitation services'' and inserting ``a 
     program consisting of the Ticket to Work and Self-Sufficiency 
     Program under section 1148 or another program of vocational 
     rehabilitation services, employment services, or other 
     support services''.
       (D) Section 1633(c) of the Social Security Act (42 U.S.C. 
     1383b(c)) is amended--
       (i) by inserting ``(1)'' after ``(c)''; and
       (ii) by adding at the end the following:
       ``(2) For suspension of continuing disability reviews and 
     other reviews under this title similar to reviews under 
     section 221 in the case of an individual using a ticket to 
     work and self-sufficiency, see section 1148(i).''.
       (c) Effective Date.--Subject to subsection (d), the 
     amendments made by subsections (a) and (b) shall take effect 
     with the first month following 1 year after the date of 
     enactment of this Act.
       (d) Graduated Implementation of Program.--
       (1) In general.--Not later than 1 year after the date of 
     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 ability to provide tickets and services to 
     individuals under the Program exists in every State as soon 
     as practicable on or after the effective date specified in

[[Page 12960]]

     subsection (c) but not later than 3 years after such date.
       (4) Ongoing evaluation of program.--
       (A) In general.--The Commissioner shall design and conduct 
     a series of evaluations to assess the cost-effectiveness of 
     activities carried out under this section and the amendments 
     made thereby, as well as the effects of this section and the 
     amendments made thereby on work outcomes for beneficiaries 
     receiving tickets to work and self-sufficiency under the 
     Program.
       (B) Consultation.--The Commissioner shall design and carry 
     out the series of evaluations after receiving relevant advice 
     from experts in the fields of disability, vocational 
     rehabilitation, and program evaluation and individuals using 
     tickets to work and self-sufficiency under the Program and 
     consulting with the Work Incentives Advisory Panel 
     established under section 201(f), the Comptroller General of 
     the United States, other agencies of the Federal Government, 
     and private organizations with appropriate expertise.
       (C) Methodology.--
       (i) Implementation.--The Commissioner, in consultation with 
     the Work Incentives Advisory Panel established under section 
     201(f), shall ensure that plans for evaluations and data 
     collection methods under the Program are appropriately 
     designed to obtain detailed employment information.
       (ii) Specific matters to be addressed.--Each such 
     evaluation shall address (but is not limited to)--

       (I) the annual cost (including net cost) of the Program and 
     the annual cost (including net cost) that would have been 
     incurred in the absence of the Program;
       (II) the determinants of return to work, including the 
     characteristics of beneficiaries in receipt of tickets under 
     the Program;
       (III) the types of employment services, vocational 
     rehabilitation services, and other support services furnished 
     to beneficiaries in receipt of tickets under the Program who 
     return to work and to those who do not return to work;
       (IV) the duration of employment services, vocational 
     rehabilitation services, and other support services furnished 
     to beneficiaries in receipt of tickets under the Program who 
     return to work and the duration of such services furnished to 
     those who do not return to work and the cost to employment 
     networks of furnishing such services;
       (V) the employment outcomes, including wages, occupations, 
     benefits, and hours worked, of beneficiaries who return to 
     work after receiving tickets under the Program and those who 
     return to work without receiving such tickets;
       (VI) the characteristics of 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 
     beneficiaries with a range of disabilities;
       (VIII) the characteristics (including employment outcomes) 
     of those beneficiaries who receive services under the outcome 
     payment system and of those beneficiaries who receive 
     services under the outcome-milestone payment system;
       (IX) measures of satisfaction among beneficiaries in 
     receipt of tickets under the Program; and
       (X) reasons for (including comments solicited from 
     beneficiaries regarding) their choice not to use their 
     tickets or their inability to return to work despite the use 
     of their tickets.

       (D) Periodic evaluation reports.--Following the close of 
     the third and fifth fiscal years ending after the effective 
     date under subsection (c), and prior to the close of the 
     seventh fiscal year ending after such date, the Commissioner 
     shall transmit to the Committee on Ways and Means of the 
     House of Representatives and the Committee on Finance of the 
     Senate a report containing the Commissioner's evaluation of 
     the progress of activities conducted under the provisions of 
     this section and the amendments made thereby. Each such 
     report shall set forth the Commissioner's evaluation of the 
     extent to which the Program has been successful and the 
     Commissioner's conclusions on whether or how the Program 
     should be modified. Each such report shall include such data, 
     findings, materials, and recommendations as the Commissioner 
     may consider appropriate.
       (5) Extent of state's right of first refusal in advance of 
     full implementation of amendments in such state.--
       (A) In general.--In the case of any State in which the 
     amendments made by subsection (a) have not been fully 
     implemented pursuant to this subsection, the Commissioner 
     shall determine by regulation the extent to which--
       (i) the requirement under section 222(a) 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 the Social Security Act to provide vocational 
     rehabilitation services in such State by agreement or 
     contract with other public or private agencies, 
     organizations, institutions, or individuals,

     shall apply in such State.
       (B) Existing agreements.--Nothing in subparagraph (A) or 
     the amendments made by subsection (a) shall be construed to 
     limit, impede, or otherwise affect any agreement entered into 
     pursuant to section 222(d)(2) of the Social Security Act 
     before the date of enactment of this Act with respect to 
     services provided pursuant to such agreement to beneficiaries 
     receiving services under such agreement as of such date, 
     except with respect to services (if any) to be provided after 
     3 years after the effective date provided in subsection (c).
       (e) Specific Regulations Required.--
       (1) In general.--The Commissioner of Social Security shall 
     prescribe such regulations as are necessary to implement the 
     amendments made by this section.
       (2) Specific matters to be included in regulations.--The 
     matters which shall be addressed in such regulations shall 
     include--
       (A) the form and manner in which tickets to work and self-
     sufficiency may be distributed to beneficiaries pursuant to 
     section 1148(b)(1) of the Social Security Act;
       (B) the format and wording of such tickets, which shall 
     incorporate by reference any contractual terms governing 
     service by employment networks under the Program;
       (C) the form and manner in which State agencies may elect 
     participation in the Ticket to Work and Self-Sufficiency 
     Program (and revoke such an election) pursuant to section 
     1148(c)(1) of the Social Security Act and provision for 
     periodic opportunities for exercising such elections (and 
     revocations);
       (D) the status of State agencies under section 1148(c)(1) 
     at the time that State agencies exercise elections (and 
     revocations) under that section;
       (E) the terms of agreements to be entered into with program 
     managers pursuant to section 1148(d) of the Social Security 
     Act, including--
       (i) the terms by which program managers are precluded from 
     direct participation in the delivery of services pursuant to 
     section 1148(d)(3) of the Social Security Act;
       (ii) standards which must be met by quality assurance 
     measures referred to in paragraph (6) of section 1148(d) and 
     methods of recruitment of employment networks utilized 
     pursuant to paragraph (2) of section 1148(e); and
       (iii) the format under which dispute resolution will 
     operate under section 1148(d)(7);
       (F) the terms of agreements to be entered into with 
     employment networks pursuant to section 1148(d)(4) of the 
     Social Security Act, including--
       (i) the manner in which service areas are specified 
     pursuant to section 1148(f)(2)(A) of the Social Security Act;
       (ii) the general selection criteria and the specific 
     selection criteria which are applicable to employment 
     networks under section 1148(f)(1)(C) of the Social Security 
     Act in selecting service providers;
       (iii) specific requirements relating to annual financial 
     reporting by employment networks pursuant to section 
     1148(f)(3) of the Social Security Act; and
       (iv) the national model to which periodic outcomes 
     reporting by employment networks must conform under section 
     1148(f)(4) of the Social Security Act;
       (G) standards which must be met by individual work plans 
     pursuant to section 1148(g) of the Social Security Act;
       (H) standards which must be met by payment systems required 
     under section 1148(h) of the Social Security Act, including--
       (i) the form and manner in which elections by employment 
     networks of payment systems are to be exercised pursuant to 
     section 1148(h)(1)(A);
       (ii) the terms which must be met by an outcome payment 
     system under section 1148(h)(2);
       (iii) the terms which must be met by an outcome-milestone 
     payment system under section 1148(h)(3);
       (iv) any revision of the percentage specified in paragraph 
     (2)(C) of section 1148(h) of the Social Security Act or the 
     period of time specified in paragraph (4)(B) of such section 
     1148(h); and
       (v) annual oversight procedures for such systems; and
       (I) procedures for effective oversight of the Program by 
     the Commissioner of Social Security, including periodic 
     reviews and reporting requirements.
       (f) Work Incentives Advisory Panel.--
       (1) Establishment.--There is established within the Social 
     Security Administration a panel to be known as the ``Work 
     Incentives Advisory Panel'' (in this subsection referred to 
     as the ``Panel'').
       (2) Duties of panel.--It shall be the duty of the Panel 
     to--
       (A) advise the Secretary of Health and Human Services, the 
     Secretary of Labor, the Secretary of Education, and the 
     Commissioner of Social Security on issues related to work 
     incentives programs, planning, and assistance for individuals 
     with disabilities, including work incentive provisions under 
     titles II, XI, XVI, XVIII, and XIX of the Social Security Act 
     (42 U.S.C. 401 et seq., 1301 et seq., 1381 et seq., 1395 et 
     seq., 1396 et seq.); and
       (B) with respect to the Ticket to Work and Self-Sufficiency 
     Program established under section 1148 of the Social Security 
     Act--
       (i) advise the Commissioner of Social Security with respect 
     to establishing phase-in sites for such Program and fully 
     implementing the Program thereafter, the refinement of access 
     of disabled beneficiaries to employment networks, payment 
     systems, and management information systems, and advise the 
     Commissioner whether such measures are being taken to the 
     extent necessary to ensure the success of the Program;
       (ii) advise the Commissioner regarding the most effective 
     designs for research and demonstration projects associated 
     with the Program or conducted pursuant to section 302;
       (iii) advise the Commissioner on the development of 
     performance measurements relating to quality assurance under 
     section 1148(d)(6) of the Social Security Act; and
       (iv) furnish progress reports on the Program to the 
     Commissioner and each House of Congress.

[[Page 12961]]

       (3) Membership.--
       (A) Number and appointment.--The Panel shall be composed of 
     12 members appointed by the Commissioner of Social Security 
     in consultation with the Speaker of the House of 
     Representatives, the Minority Leader of the House of 
     Representatives, the Majority Leader of the Senate, and the 
     Minority Leader of the Senate.
       (B) Representation.--All members appointed to the Panel 
     shall have experience or expert knowledge in the fields of, 
     or related to, work incentive programs, employment services, 
     vocational rehabilitation services, health care services, and 
     other support services for individuals with disabilities. At 
     least 7 members of the Panel shall be individuals with 
     disabilities or representatives of individuals with 
     disabilities, except that, of those 7 members, at least 5 
     members shall be current or former title II disability 
     beneficiaries or title XVI disability beneficiaries (as such 
     terms are defined in section 1148(k) of the Social Security 
     Act (as added by subsection (a)).
       (C) Terms.--
       (i) In general.--Each member shall be appointed for a term 
     of 4 years (or, if less, for the remaining life of the 
     Panel), except as provided in clauses (ii) and (iii). The 
     initial members shall be appointed not later than 90 days 
     after the date of enactment of this Act.
       (ii) Terms of initial appointees.--As designated by the 
     Commissioner at the time of appointment, of the members first 
     appointed--

       (I) 6 of the members appointed under subparagraph (A) shall 
     be appointed for a term of 2 years; and
       (II) 6 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, and 
     in a manner, that is consistent with guidelines established 
     under section 7 of the Federal Advisory Committee Act (5 
     U.S.C. App.).
       (E) Travel expenses.--Each member shall receive travel 
     expenses, including per diem in lieu of subsistence, in 
     accordance with sections 5702 and 5703 of title 5, United 
     States Code.
       (F) Quorum.--Eight 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 Commissioner. 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 Commissioner and paid at a rate, and in a 
     manner, that is consistent with guidelines established under 
     section 7 of the Federal Advisory Committee Act (5 U.S.C. 
     App.).
       (B) Staff.--Subject to rules prescribed by the 
     Commissioner, the Director may appoint and fix the pay of 
     additional personnel as the Director considers appropriate.
       (C) Experts and consultants.--Subject to rules prescribed 
     by the Commissioner, 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 subsection.
       (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 subsection.
       (C) Mails.--The Panel may use the United States mails in 
     the same manner and under the same conditions as other 
     departments and agencies of the United States.
       (6) Reports.--
       (A) Interim reports.--The Panel shall submit to the 
     President and Congress interim reports at least annually.
       (B) Final report.--The Panel shall transmit a final report 
     to the President and Congress not later than 8 years after 
     the date of 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) Allocation of costs.--The costs of carrying out this 
     subsection shall be paid from amounts made available for the 
     administration of title II of the Social Security Act (42 
     U.S.C. 401 et seq.) and amounts made available for the 
     administration of title XVI of that Act (42 U.S.C. 1381 et 
     seq.), and shall be allocated among those amounts as 
     appropriate.
             Subtitle B--Elimination of Work Disincentives

     SEC. 211. WORK ACTIVITY STANDARD AS A BASIS FOR REVIEW OF AN 
                   INDIVIDUAL'S DISABLED STATUS.

       Section 221 of the Social Security Act (42 U.S.C. 421) is 
     amended by adding at the end the following:
       ``(m)(1) In any case where an individual entitled to 
     disability insurance benefits under section 223 or to monthly 
     insurance benefits under section 202 based on such 
     individual's disability (as defined in section 223(d)) has 
     received such benefits for at least 24 months--
       ``(A) no continuing disability review conducted by the 
     Commissioner may be scheduled for the individual solely as a 
     result of the individual's work activity;
       ``(B) no work activity engaged in by the individual may be 
     used as evidence that the individual is no longer disabled; 
     and
       ``(C) no cessation of work activity by the individual may 
     give rise to a presumption that the individual is unable to 
     engage in work.
       ``(2) An individual to which paragraph (1) applies shall 
     continue to be subject to--
       ``(A) continuing disability reviews on a regularly 
     scheduled basis that is not triggered by work; and
       ``(B) termination of benefits under this title in the event 
     that the individual has earnings that exceed the level of 
     earnings established by the Commissioner to represent 
     substantial gainful activity.''.

     SEC. 212. EXPEDITED REINSTATEMENT OF DISABILITY BENEFITS.

       (a) OASDI Benefits.--Section 223 of the Social Security Act 
     (42 U.S.C. 423) is amended--
       (1) by redesignating subsection (i) as subsection (j); and
       (2) by inserting after subsection (h) the following:

                     ``Reinstatement of Entitlement

       ``(i)(1)(A) Entitlement to benefits described in 
     subparagraph (B)(i)(I) shall be reinstated in any case where 
     the Commissioner determines that an individual described in 
     subparagraph (B) has filed a request for reinstatement 
     meeting the requirements of paragraph (2)(A) during the 
     period prescribed in subparagraph (C). Reinstatement of such 
     entitlement shall be in accordance with the terms of this 
     subsection.
       ``(B) An individual is described in this subparagraph if--
       ``(i) prior to the month in which the individual files a 
     request for reinstatement--
       ``(I) the individual was entitled to benefits under this 
     section or section 202 on the basis of disability pursuant to 
     an application filed therefore; and
       ``(II) such entitlement terminated due to the performance 
     of substantial gainful activity;
       ``(ii) the individual is under a disability and the 
     physical or mental impairment that is the basis for the 
     finding of disability is the same as (or related to) the 
     physical or mental impairment that was the basis for the 
     finding of disability that gave rise to the entitlement 
     described in clause (i); and
       ``(iii) the individual's disability renders the individual 
     unable to perform substantial gainful activity.
       ``(C)(i) Except as provided in clause (ii), the period 
     prescribed in this subparagraph with respect to an individual 
     is 60 consecutive months beginning with the month following 
     the most recent month for which the individual was entitled 
     to a benefit described in subparagraph (B)(i)(I) prior to the 
     entitlement termination described in subparagraph (B)(i)(II).
       ``(ii) In the case of an individual who fails to file a 
     reinstatement request within the period prescribed in clause 
     (i), the Commissioner may extend the period if the 
     Commissioner determines that the individual had good cause 
     for the failure to so file.
       ``(2)(A)(i) A request for reinstatement shall be filed in 
     such form, and containing such information, as the 
     Commissioner may prescribe.
       ``(ii) A request for reinstatement shall include express 
     declarations by the individual that the individual meets the 
     requirements specified in clauses (ii) and (iii) of paragraph 
     (1)(B).
       ``(B) A request for reinstatement filed in accordance with 
     subparagraph (A) may constitute an application for benefits 
     in the case of any individual who the Commissioner determines 
     is not entitled to reinstated benefits under this subsection.
       ``(3) In determining whether an individual meets the 
     requirements of paragraph (1)(B)(ii), the provisions of 
     subsection (f) shall apply.
       ``(4)(A)(i) Subject to clause (ii), entitlement to benefits 
     reinstated under this subsection shall commence with the 
     benefit payable for the month in which a request for 
     reinstatement is filed.
       ``(ii) An individual whose entitlement to a benefit for any 
     month would have been reinstated under this subsection had 
     the individual filed a request for reinstatement before the 
     end of such month shall be entitled to such benefit for such 
     month if such request for reinstatement is filed before the 
     end of the twelfth month immediately succeeding such month.
       ``(B)(i) Subject to clauses (ii) and (iii), the amount of 
     the benefit payable for any month pursuant to the 
     reinstatement of entitlement under this subsection shall be 
     determined in accordance with the provisions of this title.
       ``(ii) For purposes of computing the primary insurance 
     amount of an individual whose entitlement to benefits under 
     this section is reinstated under this subsection, the date of 
     onset of the individual's disability shall be the date of 
     onset used in determining the individual's most recent period 
     of disability arising in connection with such benefits 
     payable on the basis of an application.

[[Page 12962]]

       ``(iii) Benefits under this section or section 202 payable 
     for any month pursuant to a request for reinstatement filed 
     in accordance with paragraph (2) shall be reduced by the 
     amount of any provisional benefit paid to such individual for 
     such month under paragraph (7).
       ``(C) No benefit shall be payable pursuant to an 
     entitlement reinstated under this subsection to an individual 
     for any month in which the individual engages in substantial 
     gainful activity.
       ``(D) The entitlement of any individual that is reinstated 
     under this subsection shall end with the benefits payable for 
     the month preceding whichever of the following months is the 
     earliest:
       ``(i) The month in which the individual dies.
       ``(ii) The month in which the individual attains retirement 
     age.
       ``(iii) The third month following the month in which the 
     individual's disability ceases.
       ``(5) Whenever an individual's entitlement to benefits 
     under this section is reinstated under this subsection, 
     entitlement to benefits payable on the basis of such 
     individual's wages and self-employment income may be 
     reinstated with respect to any person previously entitled to 
     such benefits on the basis of an application if the 
     Commissioner determines that such person satisfies all the 
     requirements for entitlement to such benefits except 
     requirements related to the filing of an application. The 
     provisions of paragraph (4) shall apply to the reinstated 
     entitlement of any such person to the same extent that they 
     apply to the reinstated entitlement of such individual.
       ``(6) An individual to whom benefits are payable under this 
     section or section 202 pursuant to a reinstatement of 
     entitlement under this subsection for 24 months (whether or 
     not consecutive) shall, with respect to benefits so payable 
     after such twenty-fourth month, be deemed for purposes of 
     paragraph (1)(B)(i)(I) and the determination, if appropriate, 
     of the termination month in accordance with subsection (a)(1) 
     of this section, or subsection (d)(1), (e)(1), or (f)(1) of 
     section 202, to be entitled to such benefits on the basis of 
     an application filed therefore.
       ``(7)(A) An individual described in paragraph (1)(B) who 
     files a request for reinstatement in accordance with the 
     provisions of paragraph (2)(A) shall be entitled to 
     provisional benefits payable in accordance with this 
     paragraph, unless the Commissioner determines that the 
     individual does not meet the requirements of paragraph 
     (1)(B)(i) or that the individual's declaration under 
     paragraph (2)(A)(ii) is false. Any such determination by the 
     Commissioner shall be final and not subject to review under 
     subsection (b) or (g) of section 205.
       ``(B) The amount of a provisional benefit for a month shall 
     equal the amount of the last monthly benefit payable to the 
     individual under this title on the basis of an application 
     increased by an amount equal to the amount, if any, by which 
     such last monthly benefit would have been increased as a 
     result of the operation of section 215(i).
       ``(C)(i) Provisional benefits shall begin with the month in 
     which a request for reinstatement is filed in accordance with 
     paragraph (2)(A).
       ``(ii) Provisional benefits shall end with the earliest 
     of--
       ``(I) the month in which the Commissioner makes a 
     determination regarding the individual's entitlement to 
     reinstated benefits;
       ``(II) the fifth month following the month described in 
     clause (i);
       ``(III) the month in which the individual performs 
     substantial gainful activity; or
       ``(IV) the month in which the Commissioner determines that 
     the individual does not meet the requirements of paragraph 
     (1)(B)(i) or that the individual's declaration made in 
     accordance with paragraph (2)(A)(ii) is false.
       ``(D) In any case in which the Commissioner determines that 
     an individual is not entitled to reinstated benefits, any 
     provisional benefits paid to the individual under this 
     paragraph shall not be subject to recovery as an overpayment 
     unless the Commissioner determines that the individual knew 
     or should have known that the individual did not meet the 
     requirements of paragraph (1)(B).''.
       (b) SSI Benefits.--
       (1) In general.--Section 1631 of the Social Security Act 
     (42 U.S.C. 1383) is amended by adding at the end the 
     following:

 ``Reinstatement of Eligibility on the Basis of Blindness or Disability

       ``(p)(1)(A) Eligibility for benefits under this title shall 
     be reinstated in any case where the Commissioner determines 
     that an individual described in subparagraph (B) has filed a 
     request for reinstatement meeting the requirements of 
     paragraph (2)(A) during the period prescribed in subparagraph 
     (C). Reinstatement of eligibility shall be in accordance with 
     the terms of this subsection.
       ``(B) An individual is described in this subparagraph if--
       ``(i) prior to the month in which the individual files a 
     request for reinstatement--
       ``(I) the individual was eligible for benefits under this 
     title on the basis of blindness or disability pursuant to an 
     application filed therefore; and
       ``(II) the individual thereafter was ineligible for such 
     benefits due to earned income (or earned and unearned income) 
     for a period of 12 or more consecutive months;
       ``(ii) the individual is blind or disabled and the physical 
     or mental impairment that is the basis for the finding of 
     blindness or disability is the same as (or related to) the 
     physical or mental impairment that was the basis for the 
     finding of blindness or disability that gave rise to the 
     eligibility described in clause (i);
       ``(iii) the individual's blindness or disability renders 
     the individual unable to perform substantial gainful 
     activity; and
       ``(iv) the individual satisfies the nonmedical requirements 
     for eligibility for benefits under this title.
       ``(C)(i) Except as provided in clause (ii), the period 
     prescribed in this subparagraph with respect to an individual 
     is 60 consecutive months beginning with the month following 
     the most recent month for which the individual was eligible 
     for a benefit under this title (including section 1619) prior 
     to the period of ineligibility described in subparagraph 
     (B)(i)(II).
       ``(ii) In the case of an individual who fails to file a 
     reinstatement request within the period prescribed in clause 
     (i), the Commissioner may extend the period if the 
     Commissioner determines that the individual had good cause 
     for the failure to so file.
       ``(2)(A)(i) A request for reinstatement shall be filed in 
     such form, and containing such information, as the 
     Commissioner may prescribe.
       ``(ii) A request for reinstatement shall include express 
     declarations by the individual that the individual meets the 
     requirements specified in clauses (ii) through (iv) of 
     paragraph (1)(B).
       ``(B) A request for reinstatement filed in accordance with 
     subparagraph (A) may constitute an application for benefits 
     in the case of any individual who the Commissioner determines 
     is not eligible for reinstated benefits under this 
     subsection.
       ``(3) In determining whether an individual meets the 
     requirements of paragraph (1)(B)(ii), the provisions of 
     section 1614(a)(4) shall apply.
       ``(4)(A) Eligibility for benefits reinstated under this 
     subsection shall commence with the benefit payable for the 
     month following the month in which a request for 
     reinstatement is filed.
       ``(B)(i) Subject to clause (ii), the amount of the benefit 
     payable for any month pursuant to the reinstatement of 
     eligibility under this subsection shall be determined in 
     accordance with the provisions of this title.
       ``(ii) The benefit under this title payable for any month 
     pursuant to a request for reinstatement filed in accordance 
     with paragraph (2) shall be reduced by the amount of any 
     provisional benefit paid to such individual for such month 
     under paragraph (7).
       ``(C) Except as otherwise provided in this subsection, 
     eligibility for benefits under this title reinstated pursuant 
     to a request filed under paragraph (2) shall be subject to 
     the same terms and conditions as eligibility established 
     pursuant to an application filed therefore.
       ``(5) Whenever an individual's eligibility for benefits 
     under this title is reinstated under this subsection, 
     eligibility for such benefits shall be reinstated with 
     respect to the individual's spouse if such spouse was 
     previously an eligible spouse of the individual under this 
     title and the Commissioner determines that such spouse 
     satisfies all the requirements for eligibility for such 
     benefits except requirements related to the filing of an 
     application. The provisions of paragraph (4) shall apply to 
     the reinstated eligibility of the spouse to the same extent 
     that they apply to the reinstated eligibility of such 
     individual.
       ``(6) An individual to whom benefits are payable under this 
     title pursuant to a reinstatement of eligibility under this 
     subsection for twenty-four months (whether or not 
     consecutive) shall, with respect to benefits so payable after 
     such twenty-fourth month, be deemed for purposes of paragraph 
     (1)(B)(i)(I) to be eligible for such benefits on the basis of 
     an application filed therefore.
       ``(7)(A) An individual described in paragraph (1)(B) who 
     files a request for reinstatement in accordance with the 
     provisions of paragraph (2)(A) shall be eligible for 
     provisional benefits payable in accordance with this 
     paragraph, unless the Commissioner determines that the 
     individual does not meet the requirements of paragraph 
     (1)(B)(i) or that the individual's declaration under 
     paragraph (2)(A)(ii) is false. Any such determination by the 
     Commissioner shall be final and not subject to review under 
     paragraph (1) or (3) of subsection (c).
       ``(B)(i) Except as otherwise provided in clause (ii), the 
     amount of a provisional benefit for a month shall equal the 
     amount of the monthly benefit that would be payable to an 
     eligible individual under this title with the same kind and 
     amount of income.
       ``(ii) If the individual has a spouse who was previously an 
     eligible spouse of the individual under this title and the 
     Commissioner determines that such spouse satisfies all the 
     requirements of section 1614(b) except requirements related 
     to the filing of an application, the amount of a provisional 
     benefit for a month shall equal the amount of the month 
     benefit that would be payable to an eligible individual and 
     eligible spouse under this title with the same kind and 
     amount of income.
       ``(C)(i) Provisional benefits shall begin with the month 
     following the month in which a request for reinstatement is 
     filed in accordance with paragraph (2)(A).
       ``(ii) Provisional benefits shall end with the earliest 
     of--
       ``(I) the month in which the Commissioner makes a 
     determination regarding the individual's eligibility for 
     reinstated benefits;
       ``(II) the fifth month following the month for which 
     provisional benefits are first payable under clause (i); or
       ``(III) the month in which the Commissioner determines that 
     the individual does not meet the requirements of paragraph 
     (1)(B)(i) or that the individual's declaration made in 
     accordance with paragraph (2)(A)(ii) is false.

[[Page 12963]]

       ``(D) In any case in which the Commissioner determines that 
     an individual is not eligible for reinstated benefits, any 
     provisional benefits paid to the individual under this 
     paragraph shall not be subject to recovery as an overpayment 
     unless the Commissioner determines that the individual knew 
     or should have known that the individual did not meet the 
     requirements of paragraph (1)(B).
       ``(8) For purposes of this subsection other than paragraph 
     (7), the term `benefits under this title' includes State 
     supplementary payments made pursuant to an agreement under 
     section 1616(a) or section 212(b) of Public Law 93-66.''.
       (2) Conforming amendments.--
       (A) Section 1631(j)(1) of such Act (42 U.S.C. 1383(j)(1)) 
     is amended by striking the period and inserting ``, or has 
     filed a request for reinstatement of eligibility under 
     subsection (p)(2) and been determined to be eligible for 
     reinstatement.''.
       (B) Section 1631(j)(2)(A)(i)(I) of such Act (42 U.S.C. 
     1383(j)(2)(A)(i)(I)) is amended by inserting ``(other than 
     pursuant to a request for reinstatement under subsection 
     (p))'' after ``eligible''.
       (c) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     take effect on the first day of the thirteenth month 
     beginning after the date of enactment of this Act.
       (2) Limitation.--No benefit shall be payable under title II 
     or XVI of the Social Security Act on the basis of a request 
     for reinstatement filed under section 223(i) or 1631(p) of 
     such Act before the effective date described in paragraph 
     (1).
     Subtitle C--Work Incentives Planning, Assistance, and Outreach

     SEC. 221. WORK INCENTIVES OUTREACH PROGRAM.

       Part A of title XI of the Social Security Act (42 U.S.C. 
     1301 et seq.), as amended by section 201, is amended by 
     adding after section 1148 the following:


                   ``work incentives outreach program

       ``Sec. 1149. (a) Establishment.--
       ``(1) In general.--The Commissioner, in consultation with 
     the Work Incentives Advisory Panel established under section 
     201(f) of the Work Incentives Improvement Act of 1999, shall 
     establish a community-based work incentives planning and 
     assistance program for the purpose of disseminating accurate 
     information to disabled beneficiaries on work incentives 
     programs and issues related to such programs.
       ``(2) Grants, cooperative agreements, contracts, and 
     outreach.--Under the program established under this section, 
     the Commissioner shall--
       ``(A) establish a competitive program of grants, 
     cooperative agreements, or contracts to provide benefits 
     planning and assistance, including information on the 
     availability of protection and advocacy services, to disabled 
     beneficiaries, including individuals participating in the 
     Ticket to Work and Self-Sufficiency Program established under 
     section 1148, the program established under section 1619, and 
     other programs that are designed to encourage disabled 
     beneficiaries to work;
       ``(B) conduct directly, or through grants, cooperative 
     agreements, or contracts, ongoing outreach efforts to 
     disabled beneficiaries (and to the families of such 
     beneficiaries) who are potentially eligible to participate in 
     Federal or State work incentive programs that are designed to 
     assist disabled beneficiaries to work, including--
       ``(i) preparing and disseminating information explaining 
     such programs; and
       ``(ii) working in cooperation with other Federal, State, 
     and private agencies and nonprofit organizations that serve 
     disabled beneficiaries, and with agencies and organizations 
     that focus on vocational rehabilitation and work-related 
     training and counseling;
       ``(C) establish a corps of trained, accessible, and 
     responsive work incentives specialists within the Social 
     Security Administration who will specialize in disability 
     work incentives under titles II and XVI for the purpose of 
     disseminating accurate information with respect to inquiries 
     and issues relating to work incentives to--
       ``(i) disabled beneficiaries;
       ``(ii) benefit applicants under titles II and XVI; and
       ``(iii) individuals or entities awarded grants under 
     subparagraphs (A) or (B); and
       ``(D) provide--
       ``(i) training for work incentives specialists and 
     individuals providing planning assistance described in 
     subparagraph (C); and
       ``(ii) technical assistance to organizations and entities 
     that are designed to encourage disabled beneficiaries to 
     return to work.
       ``(3) Coordination with other programs.--The 
     responsibilities of the Commissioner established under this 
     section shall be coordinated with other public and private 
     programs that provide information and assistance regarding 
     rehabilitation services and independent living supports and 
     benefits planning for disabled beneficiaries including the 
     program under section 1619, the plans for achieving self-
     support program (PASS), and any other Federal or State work 
     incentives programs that are designed to assist disabled 
     beneficiaries, including educational agencies that provide 
     information and assistance regarding rehabilitation, school-
     to-work programs, transition services (as defined in, and 
     provided in accordance with, the Individuals with 
     Disabilities Education Act (20 U.S.C. 1400 et seq.)), a one-
     stop delivery system established under subtitle B of title I 
     of the Workforce Investment Act of 1998, and other services.
       ``(b) Conditions.--
       ``(1) Selection of entities.--
       ``(A) Application.--An entity shall submit an application 
     for a grant, cooperative agreement, or contract to provide 
     benefits planning and assistance to the Commissioner at such 
     time, in such manner, and containing such information as the 
     Commissioner may determine is necessary to meet the 
     requirements of this section.
       ``(B) Statewideness.--The Commissioner shall ensure that 
     the planning, assistance, and information described in 
     paragraph (2) shall be available on a statewide basis.
       ``(C) Eligibility of states and private organizations.--
       ``(i) In general.--The Commissioner may award a grant, 
     cooperative agreement, or contract under this section to a 
     State or a private agency or organization (other than Social 
     Security Administration Field Offices and the State agency 
     administering the State medicaid program under title XIX, 
     including any agency or entity described in clause (ii), that 
     the Commissioner determines is qualified to provide the 
     planning, assistance, and information described in paragraph 
     (2)).
       ``(ii) Agencies and entities described.--The agencies and 
     entities described in this clause are the following:

       ``(I) Any public or private agency or organization 
     (including Centers for Independent Living established under 
     title VII of the Rehabilitation Act of 1973, protection and 
     advocacy organizations, client assistance programs 
     established in accordance with section 112 of the 
     Rehabilitation Act of 1973, and State Developmental 
     Disabilities Councils established in accordance with section 
     124 of the Developmental Disabilities Assistance and Bill of 
     Rights Act (42 U.S.C. 6024)) that the Commissioner determines 
     satisfies the requirements of this section.
       ``(II) The State agency administering the State program 
     funded under part A of title IV.

       ``(D) Exclusion for conflict of interest.--The Commissioner 
     may not award a grant, cooperative agreement, or contract 
     under this section to any entity that the Commissioner 
     determines would have a conflict of interest if the entity 
     were to receive a grant, cooperative agreement, or contract 
     under this section.
       ``(2) Services provided.--A recipient of a grant, 
     cooperative agreement, or contract to provide benefits 
     planning and assistance shall select individuals who will act 
     as planners and provide information, guidance, and planning 
     to disabled beneficiaries on the--
       ``(A) availability and interrelation of any Federal or 
     State work incentives programs designed to assist disabled 
     beneficiaries that the individual may be eligible to 
     participate in;
       ``(B) adequacy of any health benefits coverage that may be 
     offered by an employer of the individual and the extent to 
     which other health benefits coverage may be available to the 
     individual; and
       ``(C) availability of protection and advocacy services for 
     disabled beneficiaries and how to access such services.
       ``(3) Amount of grants, cooperative agreements, or 
     contracts.--
       ``(A) Based on population of disabled beneficiaries.--
     Subject to subparagraph (B), the Commissioner shall award a 
     grant, cooperative agreement, or contract under this section 
     to an entity based on the percentage of the population of the 
     State where the entity is located who are disabled 
     beneficiaries.
       ``(B) Limitations.--
       ``(i) Per grant.--No entity shall receive a grant, 
     cooperative agreement, or contract under this section for a 
     fiscal year that is less than $50,000 or more than $300,000.
       ``(ii) Total amount for all grants, cooperative agreements, 
     and contracts.--The total amount of all grants, cooperative 
     agreements, and contracts awarded under this section for a 
     fiscal year may not exceed $23,000,000.
       ``(4) Allocation of costs.--The costs of carrying out this 
     section shall be paid from amounts made available for the 
     administration of title II and amounts made available for the 
     administration of title XVI, and shall be allocated among 
     those amounts as appropriate.
       ``(c) Definitions.--In this section:
       ``(1) Commissioner.--The term `Commissioner' means the 
     Commissioner of Social Security.
       ``(2) Disabled beneficiary.--The term `disabled 
     beneficiary' has the meaning given that term in section 
     1148(k)(2).''.

     SEC. 222. STATE GRANTS FOR WORK INCENTIVES ASSISTANCE TO 
                   DISABLED BENEFICIARIES.

       Part A of title XI of the Social Security Act (42 U.S.C. 
     1301 et seq.), as amended by section 221, is amended by 
     adding after section 1149 the following:


``state grants for work incentives assistance to disabled beneficiaries

       ``Sec. 1150. (a) In General.--Subject to subsection (c), 
     the Commissioner may make payments in each State to the 
     protection and advocacy system established pursuant to part C 
     of title I of the Developmental Disabilities Assistance and 
     Bill of Rights Act (42 U.S.C. 6041 et seq.) for the purpose 
     of providing services to disabled beneficiaries.
       ``(b) Services Provided.--Services provided to disabled 
     beneficiaries pursuant to a payment made under this section 
     may include--
       ``(1) information and advice about obtaining vocational 
     rehabilitation and employment services; and
       ``(2) advocacy or other services that a disabled 
     beneficiary may need to secure or regain gainful employment.

[[Page 12964]]

       ``(c) Application.--In order to receive payments under this 
     section, a protection and advocacy system shall submit an 
     application to the Commissioner, at such time, in such form 
     and manner, and accompanied by such information and 
     assurances as the Commissioner may require.
       ``(d) Amount of Payments.--
       ``(1) In general.--Subject to the amount appropriated for a 
     fiscal year for making payments under this section, a 
     protection and advocacy system shall not be paid an amount 
     that is less than--
       ``(A) in the case of a protection and advocacy system 
     located in a State (including the District of Columbia and 
     Puerto Rico) other than Guam, American Samoa, the United 
     States Virgin Islands, and the Commonwealth of the Northern 
     Mariana Islands, the greater of--
       ``(i) $100,000; or
       ``(ii) \1/3\ of 1 percent of the amount available for 
     payments under this section; and
       ``(B) in the case of a protection and advocacy system 
     located in Guam, American Samoa, the United States Virgin 
     Islands, and the Commonwealth of the Northern Mariana 
     Islands, $50,000.
       ``(2) Inflation adjustment.--For each fiscal year in which 
     the total amount appropriated to carry out this section 
     exceeds the total amount appropriated to carry out this 
     section in the preceding fiscal year, the Commissioner shall 
     increase each minimum payment under subparagraphs (A) and (B) 
     of paragraph (1) by a percentage equal to the percentage 
     increase in the total amount appropriated to carry out this 
     section between the preceding fiscal year and the fiscal year 
     involved.
       ``(e) Annual Report.--Each protection and advocacy system 
     that receives a payment under this section shall submit an 
     annual report to the Commissioner and the Work Incentives 
     Advisory Panel established under section 201(f) of the Work 
     Incentives Improvement Act of 1999 on the services provided 
     to individuals by the system.
       ``(f) Funding.--
       ``(1) Allocation of payments.--
       ``(A) In general.--Subject to subparagraph (B), payments 
     under this section shall be made from amounts made available 
     for the administration of title II and amounts made available 
     for the administration of title XVI, and shall be allocated 
     among those amounts as appropriate.
       ``(B) Limitation.--Payments under this section shall not 
     exceed $7,000,000 for fiscal year 2000, and such sums as may 
     be necessary for any fiscal year thereafter.
       ``(2) Carryover.--Any amounts allotted for payment to a 
     protection and advocacy system under this section for a 
     fiscal year shall remain available for payment to or on 
     behalf of the protection and advocacy system until the end of 
     the succeeding fiscal year.
       ``(g) Definitions.--In this section:
       ``(1) Commissioner.--The term `Commissioner' means the 
     Commissioner of Social Security.
       ``(2) Disabled beneficiary.--The term `disabled 
     beneficiary' has the meaning given that term in section 
     1148(k)(2).
       ``(3) Protection and advocacy system.--The term `protection 
     and advocacy system' means a protection and advocacy system 
     established pursuant to part C of title I of the 
     Developmental Disabilities Assistance and Bill of Rights Act 
     (42 U.S.C. 6041 et seq.).''.
             TITLE III--DEMONSTRATION PROJECTS AND STUDIES

     SEC. 301. PERMANENT EXTENSION OF DISABILITY INSURANCE PROGRAM 
                   DEMONSTRATION PROJECT AUTHORITY.

       (a) Permanent Extension of Authority.--Title II of the 
     Social Security Act (42 U.S.C. 401 et seq.) is amended by 
     adding at the end the following:


                   ``DEMONSTRATION PROJECT AUTHORITY

       ``Sec. 234. (a) Authority.--
       ``(1) In general.--The Commissioner of Social Security (in 
     this section referred to as the `Commissioner') shall develop 
     and carry out experiments and demonstration projects designed 
     to determine the relative advantages and disadvantages of--
       ``(A) various alternative methods of treating the work 
     activity of individuals entitled to disability insurance 
     benefits under section 223 or to monthly insurance benefits 
     under section 202 based on such individual's disability (as 
     defined in section 223(d)), including such methods as a 
     reduction in benefits based on earnings, designed to 
     encourage the return to work of such individuals;
       ``(B) altering other limitations and conditions applicable 
     to such individuals (including lengthening the trial work 
     period (as defined in section 222(c)), altering the 24-month 
     waiting period for hospital insurance benefits under section 
     226, altering the manner in which the program under this 
     title is administered, earlier referral of such individuals 
     for rehabilitation, and greater use of employers and others 
     to develop, perform, and otherwise stimulate new forms of 
     rehabilitation); and
       ``(C) implementing sliding scale benefit offsets using 
     variations in--
       ``(i) the amount of the offset as a proportion of earned 
     income;
       ``(ii) the duration of the offset period; and
       ``(iii) the method of determining the amount of income 
     earned by such individuals,

     to the end that savings will accrue to the Trust Funds, or to 
     otherwise promote the objectives or facilitate the 
     administration of this title.
       ``(2) Authority for expansion of scope.--The Commissioner 
     may expand the scope of any such experiment or demonstration 
     project to include any group of applicants for benefits under 
     the program established under this title with impairments 
     that reasonably may be presumed to be disabling for purposes 
     of such demonstration project, and may limit any such 
     demonstration project to any such group of applicants, 
     subject to the terms of such demonstration project which 
     shall define the extent of any such presumption.
       ``(b) Requirements.--The experiments and demonstration 
     projects developed under subsection (a) shall be of 
     sufficient scope and shall be carried out on a wide enough 
     scale to permit a thorough evaluation of the alternative 
     methods under consideration while giving assurance that the 
     results derived from the experiments and projects will obtain 
     generally in the operation of the disability insurance 
     program under this title without committing such program to 
     the adoption of any particular system either locally or 
     nationally.
       ``(c) Authority To Waive Compliance With Benefits 
     Requirements.--In the case of any experiment or demonstration 
     project conducted under subsection (a), the Commissioner may 
     waive compliance with the benefit requirements of this title, 
     and the Secretary may (upon the request of the Commissioner) 
     waive compliance with the benefits requirements of title 
     XVIII, insofar as is necessary for a thorough evaluation of 
     the alternative methods under consideration. No such 
     experiment or project shall be actually placed in operation 
     unless at least 90 days prior thereto a written report, 
     prepared for purposes of notification and information only 
     and containing a full and complete description thereof, has 
     been transmitted by the Commissioner to the Committee on Ways 
     and Means of the House of Representatives and to the 
     Committee on Finance of the Senate. Periodic reports on the 
     progress of such experiments and demonstration projects shall 
     be submitted by the Commissioner to such committees. When 
     appropriate, such reports shall include detailed 
     recommendations for changes in administration or law, or 
     both, to carry out the objectives stated in subsection (a).
       ``(d) Reports.--
       ``(1) Interim reports.--On or before June 9 of each year, 
     the Commissioner shall submit to the Committee on Ways and 
     Means of the House of Representatives and to the Committee on 
     Finance of the Senate an interim report on the progress of 
     the experiments and demonstration projects carried out under 
     this subsection together with any related data and materials 
     that the Commissioner may consider appropriate.
       ``(2) Final reports.--Not later than 90 days after the 
     termination of any experiment or demonstration project 
     carried out under this section, the Commissioner shall submit 
     to the Committee on Ways and Means of the House of 
     Representatives and to the Committee on Finance of the Senate 
     a final report with respect to that experiment and 
     demonstration project.''.
       (b) Conforming Amendments; Transfer of Prior Authority.--
       (1) Conforming amendments.--
       (A) Repeal of prior authority.--Paragraphs (1) through (4) 
     of subsection (a) and subsection (c) of section 505 of the 
     Social Security Disability Amendments of 1980 (42 U.S.C. 1310 
     note) are repealed.
       (B) Conforming amendment regarding funding.--Section 201(k) 
     of the Social Security Act (42 U.S.C. 401(k)) is amended by 
     striking ``section 505(a) of the Social Security Disability 
     Amendments of 1980'' and inserting ``section 234''.
       (2) Transfer of prior authority.--With respect to any 
     experiment or demonstration project being conducted under 
     section 505(a) of the Social Security Disability Amendments 
     of 1980 (42 U.S.C. 1310 note) as of the date of enactment of 
     this Act, the authority to conduct such experiment or 
     demonstration project (including the terms and conditions 
     applicable to the experiment or demonstration project) shall 
     be treated as if that authority (and such terms and 
     conditions) had been established under section 234 of the 
     Social Security Act, as added by subsection (a).

     SEC. 302. DEMONSTRATION PROJECTS PROVIDING FOR REDUCTIONS IN 
                   DISABILITY INSURANCE BENEFITS BASED ON 
                   EARNINGS.

       (a) Authority.--The Commissioner of Social Security shall 
     conduct demonstration projects for the purpose of evaluating, 
     through the collection of data, a program for title II 
     disability beneficiaries (as defined in section 1148(k)(3) of 
     the Social Security Act) under which 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.
       (b) Scope and Scale and Matters To Be Determined.--
       (1) In general.--The demonstration projects developed under 
     subsection (a) shall be of sufficient duration, shall be of 
     sufficient scope, and shall be carried out on a wide enough 
     scale to permit a thorough evaluation of the project to 
     determine--
       (A) the effects, if any, of induced entry into the project 
     and reduced exit from the project;
       (B) the extent, if any, to which the project being tested 
     is affected by whether it is in operation in a locality 
     within an area under the administration of the Ticket to Work 
     and Self-Sufficiency Program established under section 1148 
     of the Social Security Act; and

[[Page 12965]]

       (C) the savings that accrue to the Federal Old-Age and 
     Survivors Insurance Trust Fund, the Federal Disability 
     Insurance Trust Fund, and other Federal programs under the 
     project being tested.

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

     The Commissioner may include within the matters evaluated 
     under the project the merits of trial work periods and 
     periods of extended eligibility.
       (c) Waivers.--The Commissioner may waive compliance with 
     the benefit provisions of title II of the Social Security 
     Act, and the Secretary of Health and Human Services may waive 
     compliance with the benefit requirements of title XVIII of 
     that Act, insofar as is necessary for a thorough evaluation 
     of the alternative methods under consideration. No such 
     project shall be actually placed in operation unless at least 
     90 days prior thereto a written report, prepared for purposes 
     of notification and information only and containing a full 
     and complete description thereof, has been transmitted by the 
     Commissioner to the Committee on Ways and Means of the House 
     of Representatives and to the Committee on Finance of the 
     Senate. Periodic reports on the progress of such projects 
     shall be submitted by the Commissioner to such committees. 
     When appropriate, such reports shall include detailed 
     recommendations for changes in administration or law, or 
     both, to carry out the objectives stated in subsection (a).
       (d) Interim Reports.--Not later than 2 years after the date 
     of enactment of this Act, and annually thereafter, the 
     Commissioner of Social Security shall submit to Congress an 
     interim report on the progress of the demonstration projects 
     carried out under this subsection together with any related 
     data and materials that the Commissioner of Social Security 
     may consider appropriate.
       (e) Final Report.--The Commissioner of Social Security 
     shall submit to Congress a final report with respect to all 
     demonstration projects carried out under this section not 
     later than 1 year after their completion.
       (f) Expenditures.--Expenditures made for demonstration 
     projects under this section shall be made from the Federal 
     Disability Insurance Trust Fund and the Federal Old-Age and 
     Survivors Insurance Trust Fund, as determined appropriate by 
     the Commissioner of Social Security, and from the Federal 
     Hospital Insurance Trust Fund and the Federal Supplementary 
     Medical Insurance Trust Fund, as determined appropriate by 
     the Secretary of Health and Human Services, to the extent 
     provided in advance in appropriation Acts.

     SEC. 303. STUDIES AND REPORTS.

       (a) Study by General Accounting Office of Existing 
     Disability-Related Employment Incentives.--
       (1) Study.--As soon as practicable after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall undertake a study to assess existing tax credits 
     and other disability-related employment incentives under the 
     Americans with Disabilities Act of 1990 and other Federal 
     laws. In such study, the Comptroller General shall 
     specifically address the extent to which such credits and 
     other incentives would encourage employers to hire and retain 
     individuals with disabilities.
       (2) Report.--Not later than 3 years after the date of 
     enactment of this Act, the Comptroller General shall transmit 
     to the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate a 
     written report presenting the results of the Comptroller 
     General's study conducted pursuant to this subsection, 
     together with such recommendations for legislative or 
     administrative changes as the Comptroller General determines 
     are appropriate.
       (b) Study by General Accounting Office of Existing 
     Coordination of the DI and SSI Programs as They Relate to 
     Individuals Entering or Leaving Concurrent Entitlement.--
       (1) Study.--As soon as practicable after the date of 
     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 that 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 the Social 
     Security Act.
       (2) Report.--Not later than 3 years after the date of 
     enactment of this Act, the Comptroller General shall transmit 
     to the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate a 
     written report presenting the results of the Comptroller 
     General's study conducted pursuant to this subsection, 
     together with such recommendations for legislative or 
     administrative changes as the Comptroller General determines 
     are appropriate.
       (c) Study by General Accounting Office of the Impact of the 
     Substantial Gainful Activity Limit on Return to Work.--
       (1) Study.--As soon as practicable after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall undertake a study of the substantial gainful 
     activity level applicable as of that date to recipients of 
     benefits under section 223 of the Social Security Act (42 
     U.S.C. 423) and under section 202 of that Act (42 U.S.C. 402) 
     on the basis of a recipient having a disability, and the 
     effect of such level as a disincentive for those recipients 
     to return to work. In the study, the Comptroller General also 
     shall address the merits of increasing the substantial 
     gainful activity level applicable to such recipients of 
     benefits and the rationale for not yearly indexing that level 
     to inflation.
       (2) Report.--Not later than 2 years after the date of 
     enactment of this Act, the Comptroller General shall transmit 
     to the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate a 
     written report presenting the results of the Comptroller 
     General's study conducted pursuant to this subsection, 
     together with such recommendations for legislative or 
     administrative changes as the Comptroller General determines 
     are appropriate.
       (d) Report on Disregards Under the DI and SSI Programs.--
     Not later than 90 days after the date of enactment of this 
     Act, the Commissioner of Social Security shall submit to the 
     Committee on Ways and Means of the House of Representatives 
     and the Committee on Finance of the Senate a report that--
       (1) identifies all income, assets, and resource disregards 
     (imposed under statutory or regulatory authority) that are 
     applicable to individuals receiving benefits under title II 
     or XVI of the Social Security Act (42 U.S.C. 401 et seq., 
     1381 et seq.);
       (2) with respect to each such disregard--
       (A) specifies the most recent statutory or regulatory 
     modification of the disregard; and
       (B) recommends whether further statutory or regulatory 
     modification of the disregard would be appropriate; and
       (3) with respect to the disregard described in section 
     1612(b)(7) of the Social Security Act (42 U.S.C. 1382a(b)(7)) 
     (relating to grants, scholarships, or fellowships received 
     for use in paying the cost of tuition and fees at any 
     educational (including technical or vocational education) 
     institution)--
       (A) identifies the number of individuals receiving benefits 
     under title XVI of such Act (42 U.S.C. 1381 et seq.) who have 
     attained age 22 and have not had any portion of any grant, 
     scholarship, or fellowship received for use in paying the 
     cost of tuition and fees at any educational (including 
     technical or vocational education) institution excluded from 
     their income in accordance with that section;
       (B) recommends whether the age at which such grants, 
     scholarships, or fellowships are excluded from income for 
     purposes of determining eligibility under title XVI of the 
     Social Security Act should be increased to age 25; and
       (C) recommends whether such disregard should be expanded to 
     include any such grant, scholarship, or fellowship received 
     for use in paying the cost of room and board at any such 
     institution.
            TITLE IV--MISCELLANEOUS AND TECHNICAL AMENDMENTS

     SEC. 401. TECHNICAL AMENDMENTS RELATING TO DRUG ADDICTS AND 
                   ALCOHOLICS.

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

[[Page 12966]]

     and Alcoholics.--Section 105(a)(5)(B) of the Contract with 
     America Advancement Act of 1996 (42 U.S.C. 405 note) is 
     amended to read as follows:
       ``(B) The amendments made by paragraphs (2) and (3) shall 
     take effect on July 1, 1996, with respect to any individual--
       ``(i) whose claim for benefits is finally adjudicated on or 
     after the date of enactment of this Act; or
       ``(ii) whose entitlement to benefits is based on an 
     entitlement redetermination made pursuant to subparagraph 
     (C).''.
       (c) Effective Dates.--The amendments made by this section 
     shall take effect as if included in the enactment of section 
     105 of the Contract with America Advancement Act of 1996 
     (Public Law 104-121; 110 Stat. 852 et seq.).

     SEC. 402. TREATMENT OF PRISONERS.

       (a) Implementation of Prohibition Against Payment of Title 
     II Benefits to Prisoners.--
       (1) In general.--Section 202(x)(3) of the Social Security 
     Act (42 U.S.C. 402(x)(3)) is amended--
       (A) by inserting ``(A)'' after ``(3)''; and
       (B) by adding at the end the following:
       ``(B)(i) The Commissioner shall enter into an agreement 
     under this subparagraph with any interested State or local 
     institution comprising a jail, prison, penal institution, or 
     correctional facility, or comprising any other institution a 
     purpose of which is to confine individuals as described in 
     paragraph (1)(A)(ii). Under such agreement--
       ``(I) the institution shall provide to the Commissioner, on 
     a monthly basis and in a manner specified by the 
     Commissioner, the names, Social Security account numbers, 
     dates of birth, confinement commencement dates, and, to the 
     extent available to the institution, such other identifying 
     information concerning the individuals confined in the 
     institution as the Commissioner may require for the purpose 
     of carrying out paragraph (1); and
       ``(II) the Commissioner shall pay to the institution, with 
     respect to information described in subclause (I) concerning 
     each individual who is confined therein as described in 
     paragraph (1)(A), who receives a benefit under this title for 
     the month preceding the first month of such confinement, and 
     whose benefit under this title is determined by the 
     Commissioner to be not payable by reason of confinement based 
     on the information provided by the institution, $400 (subject 
     to reduction under clause (ii)) if the institution furnishes 
     the information to the Commissioner within 30 days after the 
     date such individual's confinement in such institution 
     begins, or $200 (subject to reduction under clause (ii)) if 
     the institution furnishes the information after 30 days after 
     such date but within 90 days after such date.
       ``(ii) The dollar amounts specified in clause (i)(II) shall 
     be reduced by 50 percent if the Commissioner is also required 
     to make a payment to the institution with respect to the same 
     individual under an agreement entered into under section 
     1611(e)(1)(I).
       ``(iii) There 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).
       ``(iv) 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) Conforming amendment to the privacy act.--Section 
     552a(a)(8)(B) of title 5, United States Code, is amended--
       (A) in clause (vi), by striking ``or'' at the end;
       (B) in clause (vii), by adding ``or'' at the end; and
       (C) by adding at the end the following:
       ``(viii) matches performed pursuant to section 202(x)(3)(B) 
     or 1611(e)(1)(I) of the Social Security Act (42 U.S.C. 
     402(x)(3)(B), 1382(e)(1)(I));''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to individuals whose period of confinement in an 
     institution commences on or after the first day of the fourth 
     month beginning after the month in which this Act is enacted.
       (b) Elimination of Title II Requirement That Confinement 
     Stem From Crime Punishable by Imprisonment for More Than 1 
     Year.--
       (1) In general.--Section 202(x)(1)(A) of the Social 
     Security Act (42 U.S.C. 402(x)(1)(A)) is amended--
       (A) in the matter preceding clause (i), by striking 
     ``during'' and inserting ``throughout'';
       (B) in clause (i), by striking ``an offense punishable by 
     imprisonment for more than 1 year (regardless of the actual 
     sentence imposed)'' and inserting ``a criminal offense''; and
       (C) in clause (ii)(I), by striking ``an offense punishable 
     by imprisonment for more than 1 year'' and inserting ``a 
     criminal offense''.
       (2) Effective date.--The amendments made by this subsection 
     shall apply to individuals whose period of confinement in an 
     institution commences on or after the first day of the fourth 
     month beginning after the month in which this Act is enacted.
       (c) Conforming Title XVI Amendments.--
       (1) Fifty percent reduction in title xvi payment in case 
     involving comparable title ii payment.--Section 1611(e)(1)(I) 
     of the Social Security Act (42 U.S.C. 1382(e)(1)(I)) is 
     amended--
       (A) in clause (i)(II), by inserting ``(subject to reduction 
     under clause (ii))'' after ``$400'' and after ``$200'';
       (B) by redesignating clauses (ii) and (iii) as clauses 
     (iii) and (iv), respectively; and
       (C) by inserting after clause (i) the following:
       ``(ii) The dollar amounts specified in clause (i)(II) shall 
     be reduced by 50 percent if the Commissioner is also required 
     to make a payment to the institution with respect to the same 
     individual under an agreement entered into under section 
     202(x)(3)(B).''.
       (2) Expansion of categories of institutions eligible to 
     enter into agreements with the commissioner.--Section 
     1611(e)(1)(I)(i) of the Social Security Act (42 U.S.C. 
     1382(e)(1)(I)(i)) is amended in the matter preceding 
     subclause (I) by striking ``institution'' and all that 
     follows through ``section 202(x)(1)(A),'' and inserting 
     ``institution comprising a jail, prison, penal institution, 
     or correctional facility, or with any other interested State 
     or local institution a purpose of which is to confine 
     individuals as described in section 202(x)(1)(A)(ii),''.
       (3) Elimination of overly broad exemption.--Section 
     1611(e)(1)(I)(iii) of such Act (42 U.S.C. 1382(e)(1)(I)(iii)) 
     (as redesignated by paragraph (1)(B), is amended by striking 
     ``(I) The provisions'' and all that follows through ``(II)''.
       (4) Effective date.--The amendments made by this subsection 
     shall take effect as if included in the enactment of section 
     203(a) of the Personal Responsibility and Work Opportunity 
     Reconciliation Act of 1996 (Public Law 104-193; 110 Stat. 
     2186). The reference to section 202(x)(1)(A)(ii) of the 
     Social Security Act in section 1611(e)(1)(I)(i) of the Social 
     Security Act as amended by paragraph (2) shall be deemed a 
     reference to such section 202(x)(1)(A)(ii) as amended by 
     subsection (b)(1)(C).
       (d) Continued Denial of Benefits to Sex Offenders Remaining 
     Confined to Public Institutions Upon Completion of Prison 
     Term.--
       (1) In general.--Section 202(x)(1)(A) of the Social 
     Security Act (42 U.S.C. 402(x)(1)(A)) is amended--
       (A) in clause (i), by striking ``or'' at the end;
       (B) in clause (ii)(IV), by striking the period and 
     inserting ``, or''; and
       (C) by adding at the end the following:
       ``(iii) immediately upon completion of confinement as 
     described in clause (i) pursuant to conviction of a criminal 
     offense an element of which is sexual activity, is confined 
     by court order in an institution at public expense pursuant 
     to a finding that the individual is a sexually dangerous 
     person or a sexual predator or a similar finding.''.
       (2) Conforming amendment.--Section 202(x)(1)(B)(ii) of the 
     Social Security Act (42 U.S.C. 402(x)(1)(B)(ii)) is amended 
     by striking ``clause (ii)'' and inserting ``clauses (ii) and 
     (iii)''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply with respect to benefits for months ending after 
     the date of enactment of this Act.

     SEC. 403. REVOCATION BY MEMBERS OF THE CLERGY OF EXEMPTION 
                   FROM SOCIAL SECURITY COVERAGE.

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

[[Page 12967]]



     SEC. 404. ADDITIONAL TECHNICAL AMENDMENT RELATING TO 
                   COOPERATIVE RESEARCH OR DEMONSTRATION PROJECTS 
                   UNDER TITLES II AND XVI.

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

     SEC. 405. AUTHORIZATION FOR STATE TO PERMIT ANNUAL WAGE 
                   REPORTS.

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

     SEC. 501. MODIFICATION TO FOREIGN TAX CREDIT CARRYBACK AND 
                   CARRYOVER PERIODS.

       (a) In General.--Section 904(c) of the Internal Revenue 
     Code of 1986 (relating to limitation on credit) is amended--
       (1) by striking ``in the second preceding taxable year,'', 
     and
       (2) by striking ``or fifth'' and inserting ``fifth, sixth, 
     or seventh''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to credits arising in taxable years beginning 
     after December 31, 2001.

     SEC. 502. LIMITATION ON USE OF NON-ACCRUAL EXPERIENCE METHOD 
                   OF ACCOUNTING.

       (a) In General.--Section 448(d)(5) of the Internal Revenue 
     Code of 1986 (relating to special rule for services) is 
     amended--
       (1) by inserting ``in fields described in paragraph 
     (2)(A)'' after ``services by such person'', and
       (2) by inserting ``certain personal'' before ``services''.
       (b) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to taxable years ending after the date of the enactment 
     of this Act.
       (2) Change in method of accounting.--In the case of any 
     taxpayer required by the amendments made by this section to 
     change its method of accounting for its first taxable year 
     ending after the date of the enactment of this Act--
       (A) such change shall be treated as initiated by the 
     taxpayer,
       (B) such change shall be treated as made with the consent 
     of the Secretary of the Treasury, and
       (C) the net amount of the adjustments required to be taken 
     into account by the taxpayer under section 481 of the 
     Internal Revenue Code of 1986 shall be taken into account 
     over a period (not greater than 4 taxable years) beginning 
     with such first taxable year.

     SEC. 503. EXTENSION OF INTERNAL REVENUE SERVICE USER FEES.

       (a) In General.--Chapter 77 of the Internal Revenue Code of 
     1986 (relating to miscellaneous provisions) is amended by 
     adding at the end the following new section:

     ``SEC. 7527. INTERNAL REVENUE SERVICE USER FEES.

       ``(a) General Rule.--The Secretary shall establish a 
     program requiring the payment of user fees for--
       ``(1) requests to the Internal Revenue Service for ruling 
     letters, opinion letters, and determination letters, and
       ``(2) other similar requests.
       ``(b) Program Criteria.--
       ``(1) In general.--The fees charged under the program 
     required by subsection (a)--
       ``(A) shall vary according to categories (or subcategories) 
     established by the Secretary,
       ``(B) shall be determined after taking into account the 
     average time for (and difficulty of) complying with requests 
     in each category (and subcategory), and
       ``(C) shall be payable in advance.
       ``(2) Exemptions, etc.--The Secretary shall provide for 
     such exemptions (and reduced fees) under such program as the 
     Secretary determines to be appropriate.
       ``(3) Average fee requirement.--The average fee charged 
     under the program required by subsection (a) shall not be 
     less than the amount determined under the following table:

``Category                                                  Average Fee
  Employee plan ruling and opinion............................$250 ....

  Exempt organization ruling..................................$350 ....

  Employee plan determination.................................$300 ....

  Exempt organization determination...........................$275 ....

  Chief counsel ruling........................................$200.....

       ``(c) Termination.--No fee shall be imposed under this 
     section with respect to requests made after September 30, 
     2006.''
       (b) Conforming Amendments.--
       (1) The table of sections for chapter 77 of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new item:

``Sec. 7527. Internal Revenue Service user fees.''

       (2) Section 10511 of the Revenue Act of 1987 is repealed.
       (c) Effective Date.--The amendments made by this section 
     shall apply to requests made after the date of the enactment 
     of this Act.


                           Amendment No. 671

              (Purpose: To provide a complete substitute)

  The PRESIDING OFFICER. The clerk will report the Roth amendment.
  The legislative clerk read as follows:

       The Senator from Delaware [Mr. Roth] proposes an amendment 
     numbered 671.

  (The text of the amendment is printed in today's Record under 
``Amendments Submitted.''):
  The PRESIDING OFFICER. The amendment is agreed to.
  The amendment (No. 671) was agreed to.
  The PRESIDING OFFICER. Under the previous order, there will now be 20 
minutes equally divided in the usual form.
  Who yields time?
  Mr. JEFFORDS addressed the Chair.
  The PRESIDING OFFICER. The Senator from Vermont is recognized.
  Mr. JEFFORDS. Mr. President, I said yesterday, ``The time has come.'' 
And, now finally it has. I said yesterday, ``Our friends with 
disabilities have waited patiently.'' I say today, They are more than 
patient. They are saints with tolerance for congressional schedules. 
Everyone here--everyone in the White House, everyone in the other body, 
and because of e-mail, everyone in the country--knows I am referring to 
our pending consideration of landmark legislation, S. 331, the Work 
Incentives Improvement Act of 1999.
  When I came to Congress in January 1975, one of my legislative 
priorities was providing access to the American dream for people with 
disabilities.
  Well, today, after 3 long years, endless hours of discussion and 
drafting, and redrafting, we are about to remove the biggest remaining 
barrier to the American dream for individuals with disabilities--access 
to health care if they work. What we are about to do was long in 
coming. It is so important.
  During the process that got us to this point, I have learned a great 
deal. I suspect the same holds true for the 77 other cosponsors of this 
bill. People with disabilities want to work, and will work, if given 
access to health care. This bill does just that--it gives workers with 
disabilities access to appropriate health care--health care that is not 
readily available or affordable from the private sector.
  People with disabilities want to work, and will work, if given access 
to job training and job placement assistance. This bill does just 
that--it gives individuals with disabilities training and help securing 
a job.
  The work Incentives Improvement Act empowers people with disabilities 
to control the quality of their lives, to pay State and Federal taxes, 
to return the investment that society has made in them, and most of 
all, the bill empowers them so they can go to work.
  I thank my bipartisan original cosponsors Senators Kennedy, Roth, and 
Moynihan who, with me, created a sound piece of legislation to address 
this real problem for millions of Americans with disabilities. Their 
commitment represents the best of what the Senate can accomplish when 
sound policy is placed above partisanship and beyond who gets credit.
  I also thank the additional, original 35 cosponsors of this bill and 
the subsequent 42 cosponsors who represent a total of over three 
quarters of this body, perhaps a Senate record on health care 
legislation.
  Over the last two weeks the majority leader has been the driving 
force that urged us to work out policy differences that were delaying 
floor consideration. We did so through good faith efforts that 
broadened support for the bill and reduced its overall modest cost.
  In particular, I want to recognize Senators Nickles, Bunning and 
Gramm for their willingness to reach consensus with us on policy 
without compromising the integrity of the legislation, thus, allowing 
S. 331 to move forward.
  I especially give a heartfelt thanks to people with disabilities who 
worked with us, trusted us to do the right thing. With their support, 
encouragement, and energy we have done the right thing.

[[Page 12968]]

  Yesterday the President asked us to give him a bill by July 4th, or 
at least July 26th, the 9th anniversary of the Americans With 
Disabilities Act. We can. We should, with 100 votes.
  I reserve the remainder of my time.
  Mr. KENNEDY addressed the Chair.
  The PRESIDING OFFICER. The distinguished Senator from Massachusetts 
is recognized.
  Mr. KENNEDY. Mr. President, how much time does each side have?
  The PRESIDING OFFICER. The Senator from Vermont has 6 minutes 6 
seconds remaining. The Senator from Massachusetts has 10 minutes.
  Mr. KENNEDY. Mr. President, I yield such time as I might use.
  Mr. President, today, we will pass landmark legislation to open the 
workplace doors for disabled people in communities across this country. 
At long last, once this measure is enacted into law, large numbers of 
people with disabilities will have the opportunity to fulfill their 
hopes and dreams of living independent and productive lives.
  A decade ago, when we enacted the Americans With Disabilities Act, we 
promised our disabled fellow citizens a new and better life in which 
disability would no longer end the American dream. Too often, for too 
many Americans, that promise has been unfulfilled. The Work Incentives 
Improvement Act will dramatically strengthen the fulfillment of that 
promise.
  We know that millions of disabled men and women in this country want 
to work and are able to work. But they are denied the opportunity to do 
so, and the nation is denied their talents and their contributions to 
our communities.
  Current laws are an anachronism. Modern medicine and modern 
technology are making it easier than ever before for disabled persons 
to have productive lives and careers. Yet current laws are often a 
greater obstacle to that goal than the disability itself. It's 
ridiculous that we punish disabled persons who dare to take a job by 
penalizing them financially, by taking away their health insurance 
lifeline, and by placing these unfair obstacles in their path.
  The Work Incentives Improvement Act removes these unfair barriers to 
work that face so many Americans with disabilities:
  It makes health insurance available and affordable when a disabled 
person goes to work, or develops a significant disability while 
working.
  It gives people with disabilities greater access to the services they 
need to become successfully employed.
  It phases out the loss of cash benefits as income rises, instead of 
the unfair sudden cut-off that workers with disabilities face today.
  It places work incentive planners in communities, rather than in 
bureaucracies, to help workers with disabilities learn how to obtain 
the employment services and support they need.
  Eliminating these barriers to work will help large numbers of 
disabled Americans to achieve self-sufficiency. We are a better and 
stronger and fairer country when we open the golden door of opportunity 
to all Americans, and enable them to be equal partners in the American 
dream. For millions of Americans with disabilities, this bill is a 
declaration of independence that can make the American dream come true.
  We must banish the patronizing mind-set that disabled people are 
unable. In fact, they have enormous talent, and America cannot afford 
to waste an ounce of it.
  Today's action is dedicated to the 54 million disabled American men 
and women who want to work and are able to work, but who face unfair 
penalties under current law if they take jobs and go to work. It is 
dedicated to the 12 million children and their families who will now 
have the chance to dream of a future of work and prosperity, and not 
government handouts.
  Our goal is to remove the unconscionable barriers they face, and free 
up the enterprise, creativity, and contribution of these Americans. 
Now, when we say ``equal opportunity for all,'' it will be clear that 
we mean all.
  No one in America should lose their medical coverage, which can mean 
the difference between life and death--if they go to work. No one in 
this country should have to choose between buying a decent meal and 
buying the medication they need.
  The Work Incentives Improvement Act will remove these unfair barriers 
and continue to make health insurance available and affordable to 
people with disabilities.
  Many leaders in communities throughout the country have worked long 
and hard and well to help us reach this milestone. They are consumers, 
family members, citizens, and advocates. They see every day that our 
current job programs are failing people with disabilities; and forcing 
them and their families into poverty.
  We have worked together for many months to develop effective ways to 
right these wrongs. To all of those who have done so much, I say thank 
you for helping us to reach this long-awaited day. This bill truly 
represents legislation of the people, by the people and for the people.
  Nearly a year ago, President Clinton signed an executive order to 
increase employment and health care coverage for people with 
disabilities. Today, with strong bipartisan support, the Senate is 
demonstrating its commitment to our fellow disabled citizens.
  I especially commend Senator Jeffords, Senator Roth, and Senator 
Moynihan for their indispensable leadership on this landmark 
legislation. I also commend the many Senate staff members whose skilled 
assistance contributed so much to this achievement--Jennifer Baxendale 
and Alec Vachon of Senator Roth's staff, Kristin Testa and John Resnick 
of Senator Moynihan's staff, Chris Crowley, Jim Downing, and Pat 
Morrissey of Senator Jeffords' staff, and Michael Myers and Connie 
Garner of my own staff.
  For far too long, disabled Americans have been left out and left 
behind. Today, we are taking long overdue action to correct the 
injustice they have unfairly suffered.
  Mr. JEFFORDS. Mr. President, I see Senator Roth is on the floor. I 
control the time. I yield to him 5 minutes.
  The PRESIDING OFFICER. The distinguished Senator from Delaware is 
recognized for 5 minutes.
  Mr. ROTH. Mr. President, this is an important day for millions of 
Americans with disabilities--a day that presents the Senate with an 
opportunity to build on the legacy of the Americans With Disabilities 
Act. Today, we have a chance to help disabled Americans move toward 
independence.
  Despite the success of the Americans With Disabilities Act, there are 
still serious obstacles facing too many people with disabilities--
obstacles that stand in the way of employment.
  Senators Jeffords, Moynihan, Kennedy, and I want to change that. 
Accordingly, in January we introduced S. 331, the Work Incentives 
Improvement Act of 1999.
  This legislation has a simple objective--to help people with 
disabilities go to work if they want to go to work, without fear of 
losing their health insurance lifeline.
  S. 331 has been one of my top priorities this year, and support for 
the bill has been widespread. Mr. President, a total of 78 Senators now 
sponsor S. 331. Let me say that again--78 Senators have signed on to S. 
331. That would be a remarkable total for any bill, let alone a health 
care proposal.
  S. 331 is necessary because the unemployment rate among working-age 
adults with severe disabilities is nearly 75 percent. Many of these 
individuals want to work. S. 331 will allow disabled individuals to 
work without losing access to health insurance coverage.
  Mr. President, we can no longer afford to deny millions of talented 
Americans the opportunity to contribute in the work force.
  More than 300 national groups agree that it is time to act, including 
organizations representing veterans, people with disabilities, health 
care providers, and insurers.
  This bill is about helping disabled Americans work--if that is what 
they want to do. It's about helping people reach their potential. It is 
not about big government--it's about getting government out of the way 
of individual commitment and creativity.
  And this bill isn't about a distinct and separate group of disabled 
individuals. It is about all of us. Realistically,

[[Page 12969]]

we are all just one tragedy away from confronting disability in our own 
families.
  Unfortunately, we cannot prevent all disabilities. But we can prevent 
making disabled individuals choose between health care and employment. 
Today, we can take a step toward making that goal a reality.
  Before we vote, I would be remiss if I did not thank Senator Jeffords 
and Senator Kennedy for their longstanding commitment to this important 
legislation. In addition, my particular thanks go to Senator Moynihan 
for all of his assistance in moving the bill through the Finance 
Committee.
  As I close, I would like to ask all my colleagues to join with me in 
voting for S. 331. By passing the Work Incentives Improvement Act 
today, we can help unleash the creativity and enthusiasm of millions of 
Americans with disabilities ready and eager to work.
  Mr. President, I ask for the yeas and nays on S. 331.
  The PRESIDING OFFICER. Is there a sufficient second?
  There is a sufficient second.
  The yeas and nays were ordered.
  Mr. THURMOND. Mr. President, will the Senator add me as a cosponsor?
  Mr. ROTH. Yes.
  Mr. MOYNIHAN. Mr. President, our revered chairman of the Finance 
Committee has been characteristically generous in thanking the 
associates who have joined him in this matter.
  I will take just a moment--I know he would wish me to do so--to call 
attention to the fact that it is our former colleague, our beloved 
former colleague, Bob Dole, who first proposed this matter. It was 
1986. He introduced the Employment Opportunities for Disabled Americans 
Act to allow supplementary security income beneficiaries to continue to 
receive Medicaid when they return to work.
  As the chairman of our committee said, this has enabled people to go 
to work who are disabled but not unwilling.
  In a hearing before our committee on this bill, Senator Dole said:

       This is about people going to work. It is about dignity and 
     opportunity and all the things we talk about when we talk 
     about being an American.

  I think this accounts, sir, for the overwhelming support in this 
body.
  With that thought, and again my thanks to the chairman, I yield the 
floor.
  I have a snippet of time that Senator Kennedy may wish to use.
  The PRESIDING OFFICER. The Senator has 1 minute 43 seconds.
  Mr. KENNEDY. Mr. President, I thank all of our colleagues for the 
program and for their support.
  Yesterday when the President was here, he indicated he would like to 
have this legislation on his desk by the Fourth of July. This really is 
a declaration of independence for the disabled. He mentioned if we were 
not able to meet that time limit, we ought to do it the 26th of July 
which will be the ninth anniversary for the Americans With Disabilities 
Act.
  I think either date will be entirely appropriate for the celebration 
in this country of the Fourth of July. I can't think of a better Fourth 
of July for millions of our fellow Americans than the successful 
signing into law of this legislation.
  I yield back the remainder of my time.
  The PRESIDING OFFICER. The distinguished Senator from Vermont is 
recognized.
  Mr. JEFFORDS. Mr. President, I thank the Senator from New York for 
bringing up the role that former Senator Bob Dole played in this whole 
process. It was his leadership and his constant reminder to me of the 
need to continue to go forward that I took on that role and now feel so 
good that tomorrow we are at the point of succeeding.
  I thank the disability community. I have never seen such an effort as 
that provided by those in the disability community of this country to 
make sure we did not forget our role and our goal.
  I also thank Pat Morrisey of my staff who has been an incredible 
workhorse on this matter. She has done a tremendous job in keeping me 
on the right track.
  This is the final great step in assuring that the disabled community 
of our country has reached the goal from which they have been precluded 
by the mobility to get health care--to be fully reentered into life.
  I yield back the remainder of my time.
  The PRESIDING OFFICER. The committee substitute, as amended, is 
agreed to.
  The bill was ordered to be engrossed for a third reading and was read 
the third time.
  Mr. ROTH. I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. GRAMM. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. GRAMM. Mr. President, I ask unanimous consent for 5 minutes to 
speak on the bill that is pending, given the role that I played in 
reaching this point.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. GRAMM. Mr. President, I think some explanation is due of how we 
came to be where we are and the circumstances under which this bill is 
being considered.
  When the bill was reported from the Finance Committee, it was funded 
by changing the Tax Code in a way that would have produced additional 
revenues--by conventional definition, that would be a tax increase.
  I felt at a time where we find it virtually impossible to control 
discretionary spending, at a time where in the same day--as was the 
case yesterday--we vote to secure in a lockbox the surplus that is 
coming from Social Security and then an hour later we vote to break the 
lockbox open and spend $270 million of Social Security money to 
subsidize loans to the steel industry, it was a very bad precedent to 
set at this point in this legislative session where we are coming 
closer and closer to blowing the top out of discretionary spending in 
the Federal Government to create a brand new entitlement, no matter how 
meritorious, and do it by raising taxes.
  As a result, we had a series of objections to efforts to bring this 
bill to a vote. Many of those efforts were in the waning hours of 
various periods of the session before we adjourned for recesses. I have 
insisted on one fundamental thing which is now embodied in the 
unanimous-consent request that we have used to bring this bill to the 
floor; that is, that it be paid for, and that it be paid for by cutting 
another entitlement program; that it not be paid for by raising taxes.
  Now, I have no objection to the bill itself. In fact, I congratulate 
Senator Jeffords. I congratulate the distinguished chairman of the 
Finance Committee, Senator Roth. I congratulate the ranking member, 
Senator Moynihan, not only for putting together a good bill but being 
willing to go back and refine that bill to deal with legitimate 
concerns that were raised, and produce a situation where I assume this 
bill will pass unanimously.
  My objection has never been to the bill itself because the policy 
embodied in the legislation itself is meritorious. The problem is, 
there are many meritorious proposals that can be made. At a time when 
we cannot seem to control discretionary spending, if we start in our 
first new entitlement program of this session to fund it by raising 
taxes, I think we create a precedent that could be very harmful to the 
economy and could ultimately drive up interest rates and threaten the 
recovery.
  So, what we have done is ensure that there is no tax increase or any 
revenue measure in this bill. We have a unanimous-consent agreement 
that this bill cannot come back to the Senate in this or any other bill 
unless it is paid for by cutting another entitlement program. So the 
one thing we can be guaranteed is, in meeting the goals of this 
meritorious bill, what we are going to be required to do is do what 
families would have to do if they came up with a good thing to spend 
money on, and that is

[[Page 12970]]

we have to go back and find another entitlement that is less 
meritorious, and we are going to have to find money from one of those 
other entitlements to fund this bill. I think that is the right way to 
do it.
  I thank my colleagues for their patience. I know the bill is 
supported by a lot of people, and they should, because these are people 
with disabilities who are trying to work.
  It has not been easy to stand in the way of this bill. I thought the 
cause was an important one. I am very happy with the final product. I 
urge my colleagues to vote for the bill. I assume it will get 100 
votes, and I think we are doing it the right way.
  I yield the floor.
  Mr. HATCH. Mr. President, I commend Senators Jeffords, Roth, Kennedy, 
and Moynihan for going the extra mile to work out the provisions of 
this legislation. I am sure it was not easy; dealing with Medicaid and 
SSDI never is.
  As a veteran of many negotiations and collaborations with on 
disability issues, I see this legislation as a fine example of 
progressive policy that does not also beget more bureaucracy and 
irresponsible spending. I do not believe that improving life for those 
with disabilities and maintaining fiscal responsibility have to be 
mutually exclusive goals if we take the time to do it right.
  That is why I appreciated the modifications made in this bill prior 
to its reintroduction early this spring. I know my colleagues on the 
Finance Committee and my former colleagues on the Health and Education 
Committee worked very hard to accomplish this goal, and I think that, 
by and large, they have succeeded. They can be proud to have produced a 
bill with such solid bipartisan support. I might mention that Pat 
Morrissey of Senator Jeffords' staff was particularly responsive to my 
earlier questions and concerns.
  I would also like to acknowledge the helpful input I received from my 
own Utah Advisory Committee on Disability Policy. While this measure 
was particularly important to a number of the committee's individual 
members, I want to note for the record that the entire committee 
endorsed it and urged my support for the bill. I am pleased to be able 
to demonstrate that support today with an ``aye'' vote.
  Mr. GRASSLEY. Mr. President, I rise today in support of legislation 
sponsored by Senators Jeffords, Kennedy, Roth and Moynihan. I commend 
my colleagues for their dedication to improving the way federal 
programs serve persons with disabilities. Continuing my support for 
this effort from last Congress, I became an original co-sponsor this 
year of S. 331, the Work Incentives Improvement Act of 1999.
  This bill addresses one of the great tragedies of our disability 
system. The tragedy is forcing many people with disabilities to choose 
between working and maintaining access to health care. The intent of 
our system was never to demoralize Americans who are ready, willing and 
able to work. It is critical that we overturn today's policies of 
disincentives toward work and replace them with thoughtful, targeted 
incentives that will enable many individuals with disabilities to 
return to work.
  By removing barriers to necessary health care, the Work Incentives 
Improvement Act gives the disabled population the green light to join 
the work force. It is smart public policy that will help alleviate the 
tight labor market, increase the tax base for the Social Security trust 
fund and address employer concerns. Many employers are wary of adding a 
high-cost employee to their company's insurance pool.
  Most of all, this bill is the right thing to do. By providing 
disabled workers a better opportunity to earn a living, this bill 
reinforces our nation's strong work ethic. Earning one's own way in the 
world helps foster personal responsibility and self-esteem.
  Over the years I have heard from Iowans who have been forced to leave 
the work force because of a disability. More than 40,000 Iowans receive 
federal disability benefits, but fewer than 20 percent of these Iowans 
hold a job. Most are discouraged form seeking employment because of the 
fear of losing critical health benefits covered by Medicare and 
Medicaid.
  For example, Tim Clancy of Iowa City has his Bachelor of Arts from 
the University of Iowa. He is an active individual and participates in 
a number of city and county government activities. Tim lives with 
cerebral palsy and relies on personal assistants for morning and 
evening help. Recently, he became employed by Target in Coralville, 
Iowa, but does not have health insurance through his employer. After he 
completes his trial work period and extended period of eligibility, he 
will lose his health insurance. The Work Incentives Act would allow 
Tim--and many others--to continue receiving the same health coverage as 
he has now.
  I look forward to the passage of this legislation. It will unlock the 
doors to employment for thousands of invaluable citizens.
  Mr. BIDEN. Mr. President, I am delighted that the Senate has agreed 
to pass S. 331, the Work Incentives Improvement Act of 1999, and I am 
proud to be a cosponsor of this important legislation.
  This bill helps maintain the autonomy and self-worth of some of our 
most vulnerable citizens, the disabled, by removing barriers that 
prevent them from returning to work. Disabled citizens in Delaware and 
elsewhere almost uniformly state that their most important goal is to 
return to work, not only for the income but for the need to be 
productive. However, because our laws currently put many obstacles in 
the way of disabled individuals who want to return to work, they often 
discover that they are better off financially and medically if they 
remain unemployed.
  The Work Incentives Improvement Act helps tear down some of these 
perverse provisions of law that block the disabled from achieving their 
goal of becoming productive, taxpaying citizens. First, and probably 
most important to the disabled, this bill helps them maintain 
appropriate health insurance through extensions and expansions of the 
Medicare and Medicaid programs. Most employer-sponsored insurance does 
not provide the specific types of coverage that the disabled need to 
enable them to return to work.
  Second, the Work Incentives Improvement Act helps the disabled obtain 
appropriate employment and vocational rehabilitation services through 
the Ticket To Work and Self-Sufficiency program, which extends access 
to such services provided by the private sector.
  Finally, this bill continues the demonstration project that allows 
the disabled who return to work to keep a portion of their cash 
payments as their work income increases; currently, the abrupt loss of 
these payments when income reaches a specific threshhold has been a 
severe disincentive for the disabled to return to work.
  Mr. President, I am honored to be a cosponsor of this important 
legislation that helps restore the disabled citizens of Delaware and 
throughout the United States to their rightful places as equal 
participants in our society, and I applaud its passage by the Senate.
  Mr. MACK. Mr. President, I rise today to speak on behalf of the Work 
Incentives Improvement Act of 1999. This bill was introduced by Senator 
Jeffords and co-sponsored by 77 members. The primary purpose of this 
legislation is to expand the availability of health care coverage under 
the Social Security Act for working individuals with disabilities. This 
bill establishes a Ticket to Work and Self-Sufficiency Program in the 
Social Security Administration to make available meaningful work 
opportunities for the disabled.
  Some months ago, in Florida, I met a woman who does not have the use 
of her arms. This woman is an accomplished artist who uses her feet to 
create beautiful works of art. She spoke with me about the difficulty 
she has had over the years obtaining health insurance for routine 
medical care and asked me to support this bill. It is with her in mind 
and the many other talented, hard-working disabled Americans that I 
support this act which will make it possible for them to obtain health 
coverage and lead productive working lives.

[[Page 12971]]

  This bill allows states to offer Medicaid coverage to workers with 
disabilities beyond what is currently available to them under the 
Balanced Budget Act of 1997. It creates two new optional eligibility 
categories and allows states to offer buy-ins for the working disabled 
so that they can maintain health care coverage, work, and have as much 
independence as their disability allows. One option permits states to 
offer a Medicaid buy-in to people with disabilities who work and have 
an earned income above 250% of poverty with specified levels for 
assets, resources and unearned income set by the state in which they 
reside. This is important to many of the disabled who have income or 
assets that exceed the current level and have an earned income that has 
exceeded $500 per month during the past year. The state can and should 
impose a sliding scale of cost-sharing of the premium, up to 100% of 
the premium, based on the income of the individual. This will allow 
many of the disabled who simply cannot get health insurance because 
they have income or assets above a certain level, to obtain health 
coverage. With the passage of this legislation, a person with 
disabilities who may be an artist, computer programmer or run a 
telephone answering service can now be successful at work and have no 
fear of being unable to obtain health coverage.
  The second option allows states that elect to participate in the 
first option to also cover people who have a severe impairment but can 
lose eligibility for Supplemental Security Income or Social Security 
Disability Insurance because of medical improvement. In certain cases, 
the only reason a person improves is because they receive medical 
treatment. This bill prevents a person from losing their health care 
coverage when their health improves due to medical treatment. The state 
can allow this type of person to buy into the state Medicaid program at 
a premium set by the state. This is a blessing to persons with 
disabling conditions which are amenable to treatment such as rheumatoid 
arthritis, Crohn's disease, depression, or sickle cell anemia. It 
allows people who can work to work and receive treatment for what may 
be a chronic disease and have no fear of losing their health coverage.
  An additional benefit of this bill provides for the continuation of 
Medicare coverage for working individuals with disabilities. An 
extended period of eligibility will allow people who receive Social 
Security Disability Insurance (SSDI) to continue to receive Part A 
Medicare coverage without payment for up to six years after returning 
to work. At present, disabled people may receive Medicare coverage for 
nine months followed by 36 months of extended eligibility but after 
that, they have to pay the Part A premium in full. Often, people 
returning to work following a period of coverage by SSDI, work part 
time so they are ineligible for health insurance or they cannot obtain 
insurance through their employer or from the private market. This bill 
would permit them to receive Part A coverage and have coverage they 
could not otherwise obtain.
  I join with my colleagues in support of this legislation to help the 
disabled help themselves.
  Mr. DODD. Mr President, I rise today to lend my strong support to 
important legislation that will enable millions of individuals with 
disabilities to achieve greater independence and financial security. 
The Work Incentives Improvement Act of 1999 offers Americans with 
disabilities the opportunity to achieve greater independence and 
financial security without the threat of losing the important 
protections provided by health insurance coverage.
  Mr. President, currently more than 75 percent of all individuals with 
disabilities are unemployed. Further, less than one-half of one percent 
of the 7.5 million persons receiving federal disability payments go to 
work each year. Yet a 1999 Harris Survey determined that 74 percent of 
Americans with disabilities want to work. However, many individuals 
with disabilities who work face the significant loss of their health 
insurance coverage as they surpass certain earning limits. This loss of 
health coverage often presents an understandable deterrent to 
employment for many individuals with disabilities. While the great 
majority of Americans with disabilities would like to work, few can 
afford to lose the protection provided by their health insurance 
coverage. Forcing individuals with disabilities to choose between work 
and health insurance coverage presents a difficult choice no one should 
be forced to make.
  S. 331 would provide incentives for persons with disabilities to 
return to work without losing their access to health insurance. This 
legislation removes barriers for disabled individuals seeking to find 
meaningful employment by allowing this vulnerable segment of our 
population to retain health insurance coverage. By removing the 
disincentive to work that the loss of health insurance presents to 
individuals with disabilities, S. 331 opens the door to greater freedom 
and increased earning for millions of Americans.
  Mr. President, I am extremely heartened by the strong support the 
Work Incentives Improvement Act of 1999 has received. In support of 
this important legislation are the Consortium for Citizens with 
Disabilities, the ARC, Easter Seals, the National Alliance for the 
Mentally Ill, the Paralyzed Veterans of America, the United Cerebral 
Palsy Association, and the National Education Association. 
Additionally, more than three-fourths of the Members of the United 
States Senate presently cosponsor S. 331.
  Finally, Mr. President, I would like to commend Senators Jeffords, 
Kennedy, Roth, and Moynihan for the important role they each played in 
developing the Work Incentives Improvement Act of 1999. Through their 
tireless efforts, S. 331 will greatly expand the opportunities afforded 
individuals with disabilities as they enter the workforce and I look 
forward to its enactment.
  Mr. BAYH. Mr. President today I rise as a co-sponsor of the Work 
Incentives Improvement Act, a bipartisan bill that removes the 
disincentives currently hindering those people with disabilities who 
wish to enter the workforce. We all owe our thanks to Senators 
Moynihan, Roth, and Kennedy for their leadership on this bill.
  When people want to work the federal government should not stand in 
their way. When people want to be productive members of our society, 
taxpaying citizens, the federal government should not stand in their 
way. Currently, 72% of Americans with disabilities want to work. 
However, nearly 75% of persons with disabilities are unemployed. We are 
sending the wrong message right now. The current set of rules make it 
more economically beneficial for someone with a disability to stay at 
home than to enter the workforce. There needs to be a transition period 
put in place to assist those with disabilities before we expect them to 
become financially independant. We do this with other programs and it 
is about time we apply such logic to this sector of our community. By 
passing this bill, if only 1% of the currently disabled Americans 
become fully employed, the federal savings in disability benefits would 
total $3.5 billion over the lifetime of the beneficiaries. Once again, 
investing in people creates a great rate of return.
  In Indiana there are 348,000 people between the ages of 16 and 64 who 
have a disability. I have heard numerous stories from Hoosiers with 
disabilities who want to work and are able to work. They have told me 
how work will mean more than a paycheck for them. It is an opportunity 
for them to be a productive and contributing member of the community, 
work towards self-sufficiency, and most importantly, to have a sense of 
pride in being needed.
  Let me tell you about Bob Neal, an employee of the Indianapolis 
Police Department. He is 42 years old and doesn't want to give up his 
job even though it would be much easier for him financially if he did. 
Bob has muscular dystrophy. When asked why he is still working he said 
``I just figure if I stay home I'll get fatter than I am and get lazy 
and die earlier. I look forward to working. You gotta have a little 
pride somewhere. That is why I stay here, because of these people, I 
could go back to Illinois and never work again, but these people, they 
know me here.''

[[Page 12972]]

Bob's story displays the problem with the current predicament in which 
most people with disabilities find themselves. This bill will address 
situations similar to that of Bob Neal. It will provide access to 
health coverage and provide employment assistance while creating 
incentives to work. It is important to allow Medicare coverage for 
people with disabilities while they are working so their health can 
continue to improve. It is no surprise this bill has such overwhelming 
support from both sides of the aisle.
  Today, I will vote in support of this bill with pride for those who 
take advantage of this newly created opportunity. I urge my colleagues 
to vote in support of this bill and send the message that people with 
disabilities will no longer need to chose between working and remaining 
healthy.

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