[DOCID: f:publ170.106]

[[Page 1859]]

       TICKET TO WORK AND WORK INCENTIVES IMPROVEMENT ACT OF 1999

[[Page 113 STAT. 1860]]

Public Law 106-170
106th Congress

                                 An Act


 
 To amend the Social Security Act to expand the availability of health 
care coverage for working individuals with disabilities, to establish a 
   Ticket to Work and Self-Sufficiency Program in the Social Security 
Administration to provide such individuals with meaningful opportunities 
to work, and for other purposes. <<NOTE: Dec. 17, 1999 -  [H.R. 1180]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in <<NOTE: Ticket to Work and Work Incentives 
Improvement Act of 1999.>>  Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) <<NOTE: 42 USC 1305 note.>>  Short Title.--This Act may be cited 
as the ``Ticket to Work and Work Incentives Improvement Act of 1999''.

    (b) Table of Contents.--The table of contents is as follows:

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

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

             Subtitle A--Ticket to Work and Self-Sufficiency

Sec. 101. Establishment of the Ticket to Work and Self-Sufficiency 
           Program.

              Subtitle B--Elimination of Work Disincentives

Sec. 111. Work activity standard as a basis for review of an 
           individual's disabled status.
Sec. 112. Expedited reinstatement of disability benefits.

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

Sec. 121. Work incentives outreach program.
Sec. 122. State grants for work incentives assistance to disabled 
           beneficiaries.

         TITLE II--EXPANDED AVAILABILITY OF HEALTH CARE SERVICES

Sec. 201. Expanding State options under the medicaid program for workers 
           with disabilities.
Sec. 202. Extending medicare coverage for OASDI disability benefit 
           recipients.
Sec. 203. Grants to develop and establish State infrastructures to 
           support working individuals with disabilities.
Sec. 204. Demonstration of coverage under the medicaid program of 
           workers with potentially severe disabilities.
Sec. 205. Election by disabled beneficiaries to suspend medigap 
           insurance when covered under a group health plan.

              TITLE III--DEMONSTRATION PROJECTS AND STUDIES

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

            TITLE IV--MISCELLANEOUS AND TECHNICAL AMENDMENTS

Sec. 401. Technical amendments relating to drug addicts and alcoholics.
Sec. 402. Treatment of prisoners.

[[Page 113 STAT. 1861]]

Sec. 403. Revocation by members of the clergy of exemption from social 
           security coverage.
Sec. 404. Additional technical amendment relating to cooperative 
           research or demonstration projects under titles II and XVI.
Sec. 405. Authorization for State to permit annual wage reports.
Sec. 406. Assessment on attorneys who receive their fees via the Social 
           Security Administration.
Sec. 407. Extension of authority of State medicaid fraud control units.
Sec. 408. Climate database modernization.
Sec. 409. Special allowance adjustment for student loans.
Sec. 410. Schedule for payments under SSI state supplementation 
           agreements.
Sec. 411. Bonus commodities.
Sec. 412. Simplification of definition of foster child under EIC.
Sec. 413. Delay of effective date of organ procurement and 
           transplantation network final rule.

                TITLE V--TAX RELIEF EXTENSION ACT OF 1999

Sec. 500. Short title of title.

                         Subtitle A--Extensions

Sec. 501. Allowance of nonrefundable personal credits against regular 
           and minimum tax liability.
Sec. 502. Research credit.
Sec. 503. Subpart F exemption for active financing income.
Sec. 504. Taxable income limit on percentage depletion for marginal 
           production.
Sec. 505. Work opportunity credit and welfare-to-work credit.
Sec. 506. Employer-provided educational assistance.
Sec. 507. Extension and modification of credit for producing electricity 
           from certain renewable resources.
Sec. 508. Extension of duty-free treatment under Generalized System of 
           Preferences.
Sec. 509. Extension of credit for holders of qualified zone academy 
           bonds.
Sec. 510. Extension of first-time homebuyer credit for District of 
           Columbia.
Sec. 511. Extension of expensing of environmental remediation costs.
Sec. 512. Temporary increase in amount of rum excise tax covered over to 
           Puerto Rico and Virgin Islands.

               Subtitle B--Other Time-Sensitive Provisions

Sec. 521. Advance pricing agreements treated as confidential taxpayer 
           information.
Sec. 522. Authority to postpone certain tax-related deadlines by reason 
           of Y2K 
           failures.
Sec. 523. Inclusion of certain vaccines against streptococcus pneumoniae 
           to list of taxable vaccines.
Sec. 524. Delay in effective date of requirement for approved diesel or 
           kerosene 
           terminals.
Sec. 525. Production flexibility contract payments.

                       Subtitle C--Revenue Offsets

                       Part I--General Provisions

Sec. 531. Modification of estimated tax safe harbor.
Sec. 532. Clarification of tax treatment of income and loss on 
           derivatives.
Sec. 533. Expansion of reporting of cancellation of indebtedness income.
Sec. 534. Limitation on conversion of character of income from 
           constructive ownership transactions.
Sec. 535. Treatment of excess pension assets used for retiree health 
           benefits.
Sec. 536. Modification of installment method and repeal of installment 
           method for accrual method taxpayers.
Sec. 537. Denial of charitable contribution deduction for transfers 
           associated with split-dollar insurance arrangements.
Sec. 538. Distributions by a partnership to a corporate partner of stock 
           in another corporation.

      Part II--Provisions Relating to Real Estate Investment Trusts

  subpart a--treatment of income and services provided by taxable reit 
                              subsidiaries

Sec. 541. Modifications to asset diversification test.
Sec. 542. Treatment of income and services provided by taxable REIT 
           subsidiaries.
Sec. 543. Taxable REIT subsidiary.
Sec. 544. Limitation on earnings stripping.

[[Page 113 STAT. 1862]]

Sec. 545. 100 percent tax on improperly allocated amounts.
Sec. 546. Effective date.
Sec. 547. Study relating to taxable REIT subsidiaries.
                      subpart b--health care reits

Sec. 551. Health care REITs.
      subpart c--conformity with regulated investment company rules

Sec. 556. Conformity with regulated investment company rules.
subpart d--clarification of exception from impermissible tenant service 
                                 income

Sec. 561. Clarification of exception for independent operators.
          subpart e--modification of earnings and profits rules

Sec. 566. Modification of earnings and profits rules.
             subpart f--modification of estimated tax rules

Sec. 571. Modification of estimated tax rules for closely held real 
           estate investment trusts.

SEC. 2. <<NOTE: 42 USC 1320b-19 note.>>  FINDINGS AND PURPOSES.

    (a) Findings.--The Congress makes the following findings:
            (1) It is the policy of the United States to provide 
        assistance to individuals with disabilities to lead productive 
        work lives.
            (2) Health care is important to all Americans.
            (3) 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.
            (4) 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.
            (5) 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.
            (6) Social Security Disability Insurance and Supplemental 
        Security Income beneficiaries 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.
            (7) Individuals with disabilities have greater opportunities 
        for employment than ever before, aided by important public 
        policy initiatives such as the Americans with Disabilities Act 
        of 1990 (42 U.S.C. 12101 et seq.), advancements in public 
        understanding of disability, and innovations in assistive 
        technology, medical treatment, and rehabilitation.
            (8) Despite such historic opportunities and the desire of 
        millions of disability recipients to work and support 
        themselves, fewer than one-half of one percent of Social 
        Security Disability

[[Page 113 STAT. 1863]]

        Insurance and Supplemental Security Income beneficiaries leave 
        the disability rolls and return to work.
            (9) In addition to the fear of loss of health care coverage, 
        beneficiaries cite financial disincentives to work and earn 
        income and lack of adequate employment training and placement 
        services as barriers to employment.
            (10) Eliminating such barriers to work by creating financial 
        incentives to work and by providing individuals with 
        disabilities real choice in obtaining the services and 
        technology they need to find, enter, and maintain employment can 
        greatly improve their short and long-term financial independence 
        and personal well-being.
            (11) In addition to the enormous advantages such changes 
        promise for individuals with disabilities, redesigning 
        government programs to help individuals with disabilities return 
        to work may result in significant savings and extend the life of 
        the Social Security Disability Insurance Trust Fund.
            (12) If only an additional one-half of one percent of the 
        current Social Security Disability Insurance and Supplemental 
        Security Income recipients were to cease receiving benefits as a 
        result of employment, the savings to the Social Security Trust 
        Funds and to the Treasury in cash assistance would total 
        $3,500,000,000 over the worklife of such individuals, far 
        exceeding the cost of providing incentives and services needed 
        to assist them in entering work and achieving financial 
        independence to the best of their abilities.

    (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--TICKET TO WORK AND SELF-SUFFICIENCY AND RELATED PROVISIONS

             Subtitle A--Ticket to Work and Self-Sufficiency

SEC. 101. ESTABLISHMENT OF THE TICKET TO WORK AND SELF-SUFFICIENCY 
            PROGRAM.

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

[[Page 113 STAT. 1864]]

    ``Sec. 1148. (a) In General. <<NOTE: Establishment. 42 USC 1320b-
19.>> --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 which is willing to 
provide such services to such 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 (29 U.S.C. 720 et 
        seq.) may elect to participate in the Program as an employment 
        network with respect to a disabled beneficiary. If the State 
        agency does elect to participate in the Program, the State 
        agency also shall elect to be paid under the outcome payment 
        system or the outcome-milestone payment system in accordance 
        with subsection (h)(1). With respect to a disabled beneficiary 
        that the State agency does not elect to have participate in the 
        Program, the State agency shall be paid for services provided to 
        that beneficiary under the system for payment applicable under 
        section 222(d) and subsections (d) and (e) of section 1615. The 
        Commissioner shall provide for periodic opportunities for 
        exercising such elections.
            ``(2) Effect of participation by state agency.--
                    ``(A) State agencies participating.--In any case in 
                which a State agency described in paragraph (1) elects 
                under that paragraph to participate in the Program, the 
                employment services, vocational rehabilitation services, 
                and other support services which, upon assignment of 
                tickets

[[Page 113 STAT. 1865]]

                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 (29 U.S.C. 720 et 
                seq.).
                    ``(B) State agencies administering maternal and 
                child health services programs.--Subparagraph (A) shall 
                not apply with respect to any State agency administering 
                a program under title V of this Act.
            ``(3) Agreements between state agencies and employment 
        networks.--State agencies and employment networks shall enter 
        into agreements regarding the conditions under which services 
        will be provided when an individual is referred by an employment 
        network to a State agency for services. The Commissioner shall 
        establish by regulations the timeframe within which such 
        agreements must be entered into and the mechanisms for dispute 
        resolution between State agencies and employment networks with 
        respect to such agreements.

    ``(d) Responsibilities of the Commissioner.--
            ``(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 or employment 
        services.
            ``(2) Tenure, renewal, and early termination.--Each 
        agreement entered into under paragraph (1) shall provide for 
        early termination upon failure to meet performance standards 
        which shall be specified in the agreement and which shall be 
        weighted to take into account any performance in prior terms. 
        Such performance standards shall include--
                    ``(A) measures for ease of access by beneficiaries 
                to services; and
                    ``(B) measures for determining the extent to which 
                failures in obtaining services for beneficiaries fall 
                within acceptable parameters, as determined by the 
                Commissioner.
            ``(3) Preclusion from direct participation in delivery of 
        services in own service area.--Agreements under paragraph (1) 
        shall preclude--
                    ``(A) direct participation by a program manager in 
                the delivery of employment services, vocational 
                rehabilitation services, or other support services to 
                beneficiaries in the service area covered by the program 
                manager's agreement; and
                    ``(B) the holding by a program manager of a 
                financial interest in an employment network or service 
                provider which provides services in a geographic area 
                covered under the program manager's agreement.
            ``(4) Selection of employment networks.--
                    ``(A) In general.--The Commissioner shall select and 
                enter into agreements with employment networks for 
                service under the Program. Such employment networks

[[Page 113 STAT. 1866]]

                shall be in addition to State agencies serving as 
                employment networks pursuant to elections under 
                subsection (c).
                    ``(B) Alternate participants.--In any State where 
                the Program is being implemented, the Commissioner shall 
                enter into an agreement with any alternate participant 
                that is operating under the authority of section 
                222(d)(2) in the State as of the date of the enactment 
                of this section and chooses to serve as an employment 
                network under the Program.
            ``(5) Termination of agreements with employment networks.--
        The Commissioner shall terminate agreements with employment 
        networks for inadequate performance, as determined by the 
        Commissioner.
            ``(6) Quality assurance.--The Commissioner shall provide for 
        such periodic reviews as are necessary to provide for effective 
        quality assurance in the provision of services by employment 
        networks. The Commissioner shall solicit and consider the views 
        of consumers and the program manager under which the employment 
        networks serve and shall consult with providers of services to 
        develop performance measurements. The Commissioner shall ensure 
        that the results of the periodic reviews are made available to 
        beneficiaries who are prospective service recipients as they 
        select employment networks. The Commissioner shall ensure that 
        the periodic surveys of beneficiaries receiving services under 
        the Program are designed to measure customer service 
        satisfaction.
            ``(7) Dispute resolution.--The Commissioner shall provide 
        for a mechanism for resolving disputes between beneficiaries and 
        employment networks, between program managers and employment 
        networks, and between program managers and providers of 
        services. The Commissioner shall afford a party to such a 
        dispute a reasonable opportunity for a full and fair review of 
        the matter in dispute.

    ``(e) Program Managers.--
            ``(1) In general.--A program manager shall conduct tasks 
        appropriate to assist the Commissioner in carrying out the 
        Commissioner's duties in administering the Program.
            ``(2) Recruitment of employment networks.--A program manager 
        shall recruit, and recommend for selection by the Commissioner, 
        employment networks for service under the Program. The program 
        manager shall carry out such recruitment and provide such 
        recommendations, and shall monitor all employment networks 
        serving in the Program in the geographic area covered under the 
        program manager's agreement, to the extent necessary and 
        appropriate to ensure that adequate choices of services are made 
        available to beneficiaries. Employment networks may serve under 
        the Program only pursuant to an agreement entered into with the 
        Commissioner under the Program incorporating the applicable 
        provisions of this section and regulations thereunder, and the 
        program manager shall provide and maintain assurances to the 
        Commissioner that payment by the Commissioner to employment 
        networks pursuant to this section is warranted based on 
        compliance by such employment networks with the terms of such 
        agreement and this section. The program manager shall not impose 
        numerical limits on the number of employment networks to be 
        recommended pursuant to this paragraph.

[[Page 113 STAT. 1867]]

            ``(3) Facilitation of access by beneficiaries to employment 
        networks.--A program manager shall facilitate access by 
        beneficiaries to employment networks. The program manager shall 
        ensure that each beneficiary is allowed changes in employment 
        networks without being deemed to have rejected services under 
        the Program. When such a change occurs, the program manager 
        shall reassign the ticket based on the choice of the 
        beneficiary. Upon the request of the employment network, the 
        program manager shall make a determination of the allocation of 
        the outcome or milestone-outcome payments based on the services 
        provided by each employment network. The program manager shall 
        establish and maintain lists of employment networks available to 
        beneficiaries and shall make such lists generally available to 
        the public. The program manager shall ensure that all 
        information provided to disabled beneficiaries pursuant to this 
        paragraph is provided in accessible formats.
            ``(4) Ensuring availability of adequate services.--The 
        program manager shall ensure that employment services, 
        vocational rehabilitation services, and other support services 
        are provided to beneficiaries throughout the geographic area 
        covered under the program manager's agreement, including rural 
        areas.
            ``(5) Reasonable access to services.--The program manager 
        shall take such measures as are necessary to ensure that 
        sufficient employment networks are available and that each 
        beneficiary receiving services under the Program has reasonable 
        access to employment services, vocational rehabilitation 
        services, and other support services. Services provided under 
        the Program may include case management, work incentives 
        planning, supported employment, career planning, career plan 
        development, vocational assessment, job training, placement, 
        follow-up services, and such other services as may be specified 
        by the Commissioner under the Program. The program manager shall 
        ensure that such services are available in each service area.

    ``(f ) Employment Networks.--
            ``(1) Qualifications for employment networks.--
                    ``(A) In general.--Each employment network serving 
                under the Program shall consist of an agency or 
                instrumentality of a State (or a political subdivision 
                thereof ) or a private entity, that assumes 
                responsibility for the coordination and delivery of 
                services under the Program to individuals assigning to 
                the employment network tickets to work and self-
                sufficiency issued under subsection (b).
                    ``(B) One-stop delivery systems.--An employment 
                network serving under the Program may consist of a one-
                stop delivery system established under subtitle B of 
                title I of the Workforce Investment Act of 1998 (29 
                U.S.C. 2811 et seq.).
                    ``(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).

[[Page 113 STAT. 1868]]

                    ``(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 that meet 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. <<NOTE: Public information.>>  The program 
        manager shall ensure that copies of all such reports issued 
        under this paragraph are made available to the public under 
        reasonable terms.

    ``(g) Individual Work Plans.--
            ``(1) Requirements.--Each employment network shall--
                    ``(A) take such measures as are necessary to ensure 
                that employment services, vocational rehabilitation 
                services, and other support services provided under the 
                Program by, or under agreements entered into with, the 
                employment network are provided under appropriate 
                individual work plans that meet the requirements of 
                subparagraph (C);
                    ``(B) develop and implement each such individual 
                work plan, in partnership with each beneficiary 
                receiving such services, in a manner that affords such 
                beneficiary the opportunity to exercise informed choice 
                in selecting an employment goal and specific services 
                needed to achieve that employment goal;
                    ``(C) ensure that each individual work plan includes 
                at least--

[[Page 113 STAT. 1869]]

                          ``(i) a statement of the vocational goal 
                      developed with the beneficiary, including, as 
                      appropriate, goals for earnings and job 
                      advancement;
                          ``(ii) a statement of the services and 
                      supports that have been deemed necessary for the 
                      beneficiary to accomplish that goal;
                          ``(iii) a statement of any terms and 
                      conditions related to the provision of such 
                      services and supports; and
                          ``(iv) a statement of understanding regarding 
                      the beneficiary's rights under the Program (such 
                      as the right to retrieve the ticket to work and 
                      self-sufficiency if the beneficiary is 
                      dissatisfied with the services being provided by 
                      the employment network) and remedies available to 
                      the individual, including information on the 
                      availability of advocacy services and assistance 
                      in resolving disputes through the State grant 
                      program authorized under section 1150;
                    ``(D) provide a beneficiary the opportunity to amend 
                the individual work plan if a change in circumstances 
                necessitates a change in the plan; and
                    ``(E) make each beneficiary's individual work plan 
                available to the beneficiary in, as appropriate, an 
                accessible format chosen by the beneficiary.
            ``(2) Effective upon written approval.--A beneficiary's 
        individual work plan shall take effect upon written approval by 
        the beneficiary or a representative of the beneficiary and a 
        representative of the employment network that, in providing such 
        written approval, acknowledges assignment of the beneficiary's 
        ticket to work and self-sufficiency.

    ``(h) Employment Network Payment Systems.--
            ``(1) Election of payment system by employment networks.--
                    ``(A) In general.--The Program shall provide for 
                payment authorized by the Commissioner to employment 
                networks under either an outcome payment system or an 
                outcome-milestone payment system. Each employment 
                network shall elect which payment system will be 
                utilized by the employment network, and, for such period 
                of time as such election remains in effect, the payment 
                system so elected shall be utilized exclusively in 
                connection with such employment network (except as 
                provided in subparagraph (B)).
                    ``(B) No change in method of payment for 
                beneficiaries with tickets already assigned to the 
                employment networks.--Any election of a payment system 
                by an employment network that would result in a change 
                in the method of payment to the employment network for 
                services provided to a beneficiary who is receiving 
                services from the employment network at the time of the 
                election shall not be effective with respect to payment 
                for services provided to that beneficiary and the method 
                of payment previously selected shall continue to apply 
                with respect to such services.
            ``(2) Outcome payment system.--

[[Page 113 STAT. 1870]]

                    ``(A) In general.--The outcome payment system shall 
                consist of a payment structure governing employment 
                networks electing such system under paragraph (1)(A) 
                which meets the requirements of this paragraph.
                    ``(B) Payments made during outcome payment period.--
                The outcome payment system shall provide for a schedule 
                of payments to an employment network, in connection with 
                each individual who is a beneficiary, for each month, 
                during the individual's outcome payment period, for 
                which benefits (described in paragraphs (3) and (4) of 
                subsection (k)) are not payable to such individual 
                because of work or earnings.
                    ``(C) Computation of payments to employment 
                network.--The payment schedule of the outcome payment 
                system shall be designed so that--
                          ``(i) the payment for each month during the 
                      outcome payment period for which benefits 
                      (described in paragraphs (3) and (4) of subsection 
                      (k)) are not payable is equal to a fixed 
                      percentage of the payment calculation base for the 
                      calendar year in which such month occurs; and
                          ``(ii) such fixed percentage is set at a 
                      percentage which does not exceed 40 percent.
            ``(3) Outcome-milestone payment system.--
                    ``(A) In general.--The outcome-milestone payment 
                system shall consist of a payment structure governing 
                employment networks electing such system under paragraph 
                (1)(A) which meets the requirements of this paragraph.
                    ``(B) Early payments upon attainment of milestones 
                in advance of outcome payment periods.--The outcome-
                milestone payment system shall provide for 1 or more 
                milestones, with respect to beneficiaries receiving 
                services from an employment network under the Program, 
                that are directed toward the goal of permanent 
                employment. Such milestones shall form a part of a 
                payment structure that provides, in addition to payments 
                made during outcome payment periods, payments made prior 
                to outcome payment periods in amounts based on the 
                attainment of such milestones.
                    ``(C) Limitation on total payments to employment 
                network.--The payment schedule of the outcome milestone 
                payment system shall be designed so that the total of 
                the payments to the employment network with respect to 
                each beneficiary is less than, on a net present value 
                basis (using an interest rate determined by the 
                Commissioner that appropriately reflects the cost of 
                funds faced by providers), the total amount to which 
                payments to the employment network with respect to the 
                beneficiary would be limited if the employment network 
                were paid under the outcome payment system.
            ``(4) Definitions.--In this subsection:
                    ``(A) Payment calculation base.--The term `payment 
                calculation base' means, for any calendar year--
                          ``(i) in connection with a title II disability 
                      beneficiary, the average disability insurance 
                      benefit payable

[[Page 113 STAT. 1871]]

                      under section 223 for all beneficiaries for months 
                      during the preceding calendar year; and
                          ``(ii) in connection with a title XVI 
                      disability beneficiary (who is not concurrently a 
                      title II disability beneficiary), the average 
                      payment of supplemental security income benefits 
                      based on disability payable under title XVI 
                      (excluding State supplementation) for months 
                      during the preceding calendar year to all 
                      beneficiaries who have attained 18 years of age 
                      but have not attained 65 years of age.
                    ``(B) Outcome payment period.--The term `outcome 
                payment period' means, in connection with any individual 
                who had assigned a ticket to work and self-sufficiency 
                to an employment network under the Program, a period--
                          ``(i) beginning with the first month, ending 
                      after the date on which such ticket was assigned 
                      to the employment network, for which benefits 
                      (described in paragraphs (3) and (4) of subsection 
                      (k)) are not payable to such individual by reason 
                      of engagement in substantial gainful activity or 
                      by reason of earnings from work activity; and
                          ``(ii) ending with the 60th month (consecutive 
                      or otherwise), ending after such date, for which 
                      such benefits are not payable to such individual 
                      by reason of engagement in substantial gainful 
                      activity or by reason of earnings from work 
                      activity.
            ``(5) Periodic review and alterations of prescribed 
        schedules.--
                    ``(A) Percentages and periods.--The Commissioner 
                shall periodically review the percentage specified in 
                paragraph (2)(C), the total payments permissible under 
                paragraph (3)(C), and the period of time specified in 
                paragraph (4)(B) to determine whether such percentages, 
                such permissible payments, and such period provide an 
                adequate incentive for employment networks to assist 
                beneficiaries to enter the workforce, while providing 
                for appropriate economies. The Commissioner may alter 
                such percentage, such total permissible payments, or 
                such period of time to the extent that the Commissioner 
                determines, on the basis of the Commissioner's review 
                under this paragraph, that such an alteration would 
                better provide the incentive and economies described in 
                the preceding sentence.
                    ``(B) Number and 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 Ticket to Work 
                and Work Incentives Advisory Panel established by 
                section 101(f ) of the Ticket to Work and Work 
                Incentives Improvement Act of 1999, and other reliable 
                sources. The Commissioner may from time to time alter 
                the number and amounts of milestone payments initially 
                established by the Commissioner pursuant to this section 
                to the extent that the Commissioner determines that such 
                an alteration

[[Page 113 STAT. 1872]]

                would allow an adequate incentive for employment 
                networks to assist beneficiaries to enter the workforce. 
                Such alteration shall be based on information provided 
                to the Commissioner by program managers, the Ticket to 
                Work and Work Incentives Advisory Panel established by 
                section 101(f ) of the Ticket to Work and Work 
                Incentives Improvement Act of 1999, or other reliable 
                sources.
                    ``(C) Report on the adequacy of 
                incentives. <<NOTE: Deadline.>> --The Commissioner shall 
                submit to the Congress not later than 36 months after 
                the date of the enactment of the Ticket to Work and Work 
                Incentives Improvement Act of 1999 a report with 
                recommendations for a method or methods to adjust 
                payment rates under subparagraphs (A) and (B), that 
                would ensure adequate incentives for the provision of 
                services by employment networks of--
                          ``(i) individuals with a need for ongoing 
                      support and services;
                          ``(ii) individuals with a need for high-cost 
                      accommodations;
                          ``(iii) individuals who earn a subminimum 
                      wage; and
                          ``(iv) individuals who work and receive 
                      partial cash benefits.
                The Commissioner shall consult with the Ticket to Work 
                and Work Incentives Advisory Panel established under 
                section 101(f ) of the Ticket to Work and Work 
                Incentives Improvement Act of 1999 during the 
                development and evaluation of the study. The 
                Commissioner shall implement the necessary adjusted 
                payment rates prior to full implementation of the Ticket 
                to Work and Self-Sufficiency Program.

    ``(i) Suspension of Disability Reviews.--During any period for which 
an individual is using, as defined by the Commissioner, a ticket to work 
and self-sufficiency issued under this section, the Commissioner (and 
any applicable State agency) may not initiate a continuing disability 
review or other review under section 221 of whether the individual is or 
is not under a disability or a review under title XVI similar to any 
such review under section 221.
    ``( j) Authorizations.--
            ``(1) Payments to employment networks.--
                    ``(A) Title ii disability beneficiaries.--There are 
                authorized to be transferred from the Federal Old-Age 
                and Survivors Insurance Trust Fund and the Federal 
                Disability Insurance Trust Fund each fiscal year such 
                sums as may be necessary to make payments to employment 
                networks under this section. Money paid from the Trust 
                Funds under this section with respect to title II 
                disability beneficiaries who are entitled to benefits 
                under section 223 or who are entitled to benefits under 
                section 202(d) on the basis of the wages and self-
                employment income of such beneficiaries, shall be 
                charged to the Federal Disability Insurance Trust Fund, 
                and all other money paid from the Trust Funds under this 
                section shall be charged to the Federal Old-Age and 
                Survivors Insurance Trust Fund.
                    ``(B) Title xvi disability beneficiaries.--Amounts 
                authorized to be appropriated to the Social Security

[[Page 113 STAT. 1873]]

                Administration under section 1601 (as in effect pursuant 
                to the amendments made by section 301 of the Social 
                Security Amendments of 1972) shall include amounts 
                necessary to carry out the provisions of this section 
                with respect to title XVI disability beneficiaries.
            ``(2) Administrative expenses.--The costs of administering 
        this section (other than payments to employment networks) shall 
        be paid from amounts made available for the administration of 
        title II and amounts made available for the administration of 
        title XVI, and shall be allocated among such amounts as 
        appropriate.

    ``(k) Definitions.--In this section:
            ``(1) Commissioner.--The term `Commissioner' means the 
        Commissioner of Social Security.
            ``(2) Disabled beneficiary.--The term `disabled beneficiary' 
        means a title II disability beneficiary or a title XVI 
        disability beneficiary.
            ``(3) Title ii disability beneficiary.--The term `title II 
        disability beneficiary' means an individual entitled to 
        disability insurance benefits under section 223 or to monthly 
        insurance benefits under section 202 based on such individual's 
        disability (as defined in section 223(d)). An individual is a 
        title II disability beneficiary for each month for which such 
        individual is entitled to such benefits.
            ``(4) Title xvi disability beneficiary.--The term `title XVI 
        disability beneficiary' means an individual eligible for 
        supplemental security income benefits under title XVI on the 
        basis of blindness (within the meaning of section 1614(a)(2)) or 
        disability (within the meaning of section 1614(a)(3)). An 
        individual is a title XVI disability beneficiary for each month 
        for which such individual is eligible for such benefits.
            ``(5) Supplemental security income benefit.--The term 
        `supplemental security income benefit under title XVI' means a 
        cash benefit under section 1611 or 1619(a), and does not include 
        a State supplementary payment, administered federally or 
        otherwise.

    ``(l) Regulations. <<NOTE: Deadline.>> --Not later than 1 year after 
the date of the enactment of the Ticket to Work and Work Incentives 
Improvement Act of 1999, the Commissioner shall prescribe such 
regulations as are necessary to carry out the provisions of this 
section.''.

    (b) Conforming Amendments.--
            (1) Amendments to title ii.--
                    (A) Section 221(i) of the Social Security Act (42 
                U.S.C. 421(i)) is amended by adding at the end the 
                following new paragraph:

    ``(5) For suspension of reviews under this subsection in the case of 
an individual using a ticket to work and self-sufficiency, see section 
1148(i).''.
                    (B) Section 222(a) of such Act (42 U.S.C. 422(a)) is 
                repealed.
                    (C) Section 222(b) of such Act (42 U.S.C. 422(b)) is 
                repealed.
                    (D) Section 225(b)(1) of such Act (42 U.S.C. 
                425(b)(1)) is amended by striking ``a program of 
                vocational rehabilitation services'' and inserting ``a 
                program consisting of the Ticket to Work and Self-
                Sufficiency Program under section

[[Page 113 STAT. 1874]]

                1148 or another program of vocational rehabilitation 
                services, employment services, or other support 
                services''.
            (2) Amendments to title xvi.--
                    (A) Section 1615(a) of such Act (42 U.S.C. 1382d(a)) 
                is amended to read as follows:

    ``Sec. 1615. (a) In the case of any blind or disabled individual 
who--
            ``(1) has not attained age 16; and
            ``(2) with respect to whom benefits are paid under this 
        title,

the Commissioner of Social Security shall make provision for referral of 
such individual to the appropriate State agency administering the State 
program under title V.''.
                    (B) Section 1615(c) of such Act (42 U.S.C. 1382d(c)) 
                is repealed.
                    (C) Section 1631(a)(6)(A) of such Act (42 U.S.C. 
                1383(a)(6)(A)) is amended by striking ``a program of 
                vocational rehabilitation services'' and inserting ``a 
                program consisting of the Ticket to Work and Self-
                Sufficiency Program under section 1148 or another 
                program of vocational rehabilitation services, 
                employment services, or other support services''.
                    (D) Section 1633(c) of such Act (42 U.S.C. 1383b(c)) 
                is amended--
                          (i) by inserting ``(1)'' after ``(c)''; and
                          (ii) by adding at the end the following new 
                      paragraph:

    ``(2) For suspension of continuing disability reviews and other 
reviews under this title similar to reviews under section 221 in the 
case of an individual using a ticket to work and self-sufficiency, see 
section 1148(i).''.
    (c) <<NOTE: 42 USC 1320b-19 note.>>  Effective Date.--Subject to 
subsection (d), the amendments made by subsections (a) and (b) shall 
take effect with the first month following 1 year after the date of the 
enactment of this Act.

    (d) <<NOTE: 42 USC 1320b-19 note.>>  Graduated Implementation of 
Program.--
            (1) In general. <<NOTE: Deadline.>> --Not later than 1 year 
        after the date of the enactment of this Act, the Commissioner of 
        Social Security shall commence implementation of the amendments 
        made by this section (other than paragraphs (1)(C) and (2)(B) of 
        subsection (b)) in graduated phases at phase-in sites selected 
        by the Commissioner. Such phase-in sites shall be selected so as 
        to ensure, prior to full implementation of the Ticket to Work 
        and Self-Sufficiency Program, the development and refinement of 
        referral processes, payment systems, computer linkages, 
        management information systems, and administrative processes 
        necessary to provide for full implementation of such amendments. 
        Subsection (c) shall apply with respect to paragraphs (1)(C) and 
        (2)(B) of subsection (b) without regard to this subsection.
            (2) Requirements.--Implementation of the Program at each 
        phase-in site shall be carried out on a wide enough scale to 
        permit a thorough evaluation of the alternative methods under 
        consideration, so as to ensure that the most efficacious methods 
        are determined and in place for full implementation of the 
        Program on a timely basis.

[[Page 113 STAT. 1875]]

            (3) Full implementation.--The Commissioner shall ensure that 
        ability to provide tickets and services to individuals under the 
        Program exists in every State as soon as practicable on or after 
        the effective date specified in subsection (c) but not later 
        than 3 years after such date.
            (4) Ongoing evaluation of program.--
                    (A) In general.--The Commissioner shall provide for 
                independent evaluations to assess the effectiveness of 
                the activities carried out under this section and the 
                amendments made thereby. Such evaluations shall address 
                the cost-effectiveness of such activities, 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.--Evaluations shall be conducted 
                under this paragraph 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 in consultation with the Ticket to Work and 
                Work Incentives Advisory Panel established under section 
                101(f ) of this Act, the Comptroller General of the 
                United States, other agencies of the Federal Government, 
                and private organizations with appropriate expertise.
                    (C) Methodology.--
                          (i) Implementation.--The Commissioner, in 
                      consultation with the Ticket to Work and Work 
                      Incentives Advisory Panel established under 
                      section 101(f ) of this Act, 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

[[Page 113 STAT. 1876]]

                                tickets under the Program and those who 
                                return to work without receiving such 
                                tickets;
                                    (VI) the characteristics of 
                                individuals in possession of tickets 
                                under the Program who are not accepted 
                                for services and, to the extent 
                                reasonably determinable, the reasons for 
                                which such beneficiaries were not 
                                accepted for services;
                                    (VII) the characteristics of 
                                providers whose services are provided 
                                within an employment network under the 
                                Program;
                                    (VIII) the extent (if any) to which 
                                employment networks display a greater 
                                willingness to provide services to 
                                beneficiaries with a range of 
                                disabilities;
                                    (IX) the characteristics (including 
                                employment outcomes) of those 
                                beneficiaries who receive services under 
                                the outcome payment system and of those 
                                beneficiaries who receive services under 
                                the outcome-milestone payment system;
                                    (X) measures of satisfaction among 
                                beneficiaries in receipt of tickets 
                                under the Program; and
                                    (XI) reasons for (including comments 
                                solicited from beneficiaries regarding) 
                                their choice not to use their tickets or 
                                their inability to return to work 
                                despite the use of their tickets.
                    (D) Periodic evaluation reports.--Following the 
                close of the third and fifth fiscal years ending after 
                the effective date under subsection (c), and prior to 
                the close of the seventh fiscal year ending after such 
                date, the Commissioner shall transmit to the Committee 
                on Ways and Means of the House of Representatives and 
                the Committee on Finance of the Senate a report 
                containing the Commissioner's evaluation of the progress 
                of activities conducted under the provisions of this 
                section and the amendments made thereby. Each such 
                report shall set forth the Commissioner's evaluation of 
                the extent to which the Program has been successful and 
                the Commissioner's conclusions on whether or how the 
                Program should be modified. Each such report shall 
                include such data, findings, materials, and 
                recommendations as the Commissioner may consider 
                appropriate.
            (5) Extent of state's right of first refusal in advance of 
        full implementation of amendments in such state.--
                    (A) In general.--In the case of any State in which 
                the amendments made by subsection (a) have not been 
                fully implemented pursuant to this subsection, the 
                Commissioner shall determine by regulation the extent to 
                which--
                          (i) the requirement under section 222(a) of 
                      the Social Security Act (42 U.S.C. 422(a)) for 
                      prompt referrals to a State agency; and
                          (ii) the authority of the Commissioner under 
                      section 222(d)(2) of such Act (42 U.S.C. 
                      422(d)(2)) 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.

[[Page 113 STAT. 1877]]

                    (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 (42 U.S.C. 422(d)(2)) before the 
                date of the enactment of this Act with respect to 
                services provided pursuant to such agreement to 
                beneficiaries receiving services under such agreement as 
                of such date, except with respect to services (if any) 
                to be provided after 3 years after the effective date 
                provided in subsection (c).

    (e) <<NOTE: 42 USC 1320b-19 note.>>  Specific Regulations 
Required.--
            (1) In general.--The Commissioner of Social Security shall 
        prescribe such regulations as are necessary to implement the 
        amendments made by this section.
            (2) Specific matters to be included in regulations.--The 
        matters which shall be addressed in such regulations shall 
        include--
                    (A) the form and manner in which tickets to work and 
                self-sufficiency may be distributed to beneficiaries 
                pursuant to section 1148(b)(1) of the Social Security 
                Act;
                    (B) the format and wording of such tickets, which 
                shall incorporate by reference any contractual terms 
                governing service by employment networks under the 
                Program;
                    (C) the form and manner in which State agencies may 
                elect participation in the Ticket to Work and Self-
                Sufficiency Program pursuant to section 1148(c)(1) of 
                such Act and provision for periodic opportunities for 
                exercising such elections;
                    (D) the status of State agencies under section 
                1148(c)(1) of such Act at the time that State agencies 
                exercise elections under that section;
                    (E) the terms of agreements to be entered into with 
                program managers pursuant to section 1148(d) of such 
                Act, including--
                          (i) the terms by which program managers are 
                      precluded from direct participation in the 
                      delivery of services pursuant to section 
                      1148(d)(3) of such Act;
                          (ii) standards which must be met by quality 
                      assurance measures referred to in paragraph (6) of 
                      section 1148(d) of such Act and methods of 
                      recruitment of employment networks utilized 
                      pursuant to paragraph (2) of section 1148(e) of 
                      such Act; and
                          (iii) the format under which dispute 
                      resolution will operate under section 1148(d)(7) 
                      of such Act;
                    (F) the terms of agreements to be entered into with 
                employment networks pursuant to section 1148(d)(4) of 
                such Act, including--
                          (i) the manner in which service areas are 
                      specified pursuant to section 1148(f )(2)(A) of 
                      such Act;
                          (ii) the general selection criteria and the 
                      specific selection criteria which are applicable 
                      to employment networks under section 1148(f 
                      )(1)(C) of such Act in selecting service 
                      providers;
                          (iii) specific requirements relating to annual 
                      financial reporting by employment networks 
                      pursuant to section 1148(f )(3) of such Act; and

[[Page 113 STAT. 1878]]

                          (iv) the national model to which periodic 
                      outcomes reporting by employment networks must 
                      conform under section 1148(f )(4) of such Act;
                    (G) standards which must be met by individual work 
                plans pursuant to section 1148(g) of such Act;
                    (H) standards which must be met by payment systems 
                required under section 1148(h) of such Act, including--
                          (i) the form and manner in which elections by 
                      employment networks of payment systems are to be 
                      exercised pursuant to section 1148(h)(1)(A) of 
                      such Act;
                          (ii) the terms which must be met by an outcome 
                      payment system under section 1148(h)(2) of such 
                      Act;
                          (iii) the terms which must be met by an 
                      outcome-milestone payment system under section 
                      1148(h)(3) of such Act;
                          (iv) any revision of the percentage specified 
                      in paragraph (2)(C) of section 1148(h) of such Act 
                      or the period of time specified in paragraph 
                      (4)(B) of such section 1148(h) of such Act; and
                          (v) annual oversight procedures for such 
                      systems; and
                    (I) procedures for effective oversight of the 
                Program by the Commissioner of Social Security, 
                including periodic reviews and reporting requirements.

    (f ) <<NOTE: 42 USC 1320b-19 note.>>  The Ticket to Work and Work 
Incentives Advisory Panel.--
            (1) Establishment.--There is established within the Social 
        Security Administration a panel to be known as the ``Ticket to 
        Work and Work Incentives Advisory Panel'' (in this subsection 
        referred to as the ``Panel'').
            (2) Duties of panel.--It shall be the duty of the Panel to--
                    (A) advise the President, the Congress, and the 
                Commissioner of Social Security on issues related to 
                work incentives programs, planning, and assistance for 
                individuals with disabilities, including work incentive 
                provisions under titles II, XI, XVI, XVIII, and XIX of 
                the Social Security Act (42 U.S.C. 401 et seq., 1301 et 
                seq., 1381 et seq., 1395 et seq., 1396 et seq.); and
                    (B) with respect to the Ticket to Work and Self-
                Sufficiency Program established under section 1148 of 
                such Act--
                          (i) advise the Commissioner of Social Security 
                      with respect to establishing phase-in sites for 
                      such Program and fully implementing the Program 
                      thereafter, the refinement of access of disabled 
                      beneficiaries to employment networks, payment 
                      systems, and management information systems, and 
                      advise the Commissioner whether such measures are 
                      being taken to the extent necessary to ensure the 
                      success of the Program;
                          (ii) advise the Commissioner regarding the 
                      most effective designs for research and 
                      demonstration projects associated with the Program 
                      or conducted pursuant to section 302 of this Act;

[[Page 113 STAT. 1879]]

                          (iii) advise the Commissioner on the 
                      development of performance measurements relating 
                      to quality assurance under section 1148(d)(6) of 
                      the Social Security Act; and
                          (iv) furnish progress reports on the Program 
                      to the Commissioner and each House of Congress.
            (3) Membership.--
                    (A) Number and appointment.--The Panel shall be 
                composed of 12 members as follows:
                          (i) four members appointed by the President, 
                      not more than two of whom may be of the same 
                      political party;
                          (ii) two members appointed by the Speaker of 
                      the House of Representatives, in consultation with 
                      the Chairman of the Committee on Ways and Means of 
                      the House of Representatives;
                          (iii) two members appointed by the minority 
                      leader of the House of Representatives, in 
                      consultation with the ranking member of the 
                      Committee on Ways and Means of the House of 
                      Representatives;
                          (iv) two members appointed by the majority 
                      leader of the Senate, in consultation with the 
                      Chairman of the Committee on Finance of the 
                      Senate; and
                          (v) two members appointed by the minority 
                      leader of the Senate, in consultation with the 
                      ranking member of the Committee on Finance of the 
                      Senate.
                    (B) Representation.--
                          (i) In general.--The members appointed under 
                      subparagraph (A) shall have experience or expert 
                      knowledge as a recipient, provider, employer, or 
                      employee in the fields of, or related to, 
                      employment services, vocational rehabilitation 
                      services, and other support services.
                          (ii) Requirement.--At least one-half of the 
                      members appointed under subparagraph (A) shall be 
                      individuals with disabilities, or representatives 
                      of individuals with disabilities, with 
                      consideration given to current or former title II 
                      disability beneficiaries or title XVI disability 
                      beneficiaries (as such terms are defined in 
                      section 1148(k) of the Social Security Act (as 
                      added by subsection (a)).
                    (C) Terms.--
                          (i) In general.--Each member shall be 
                      appointed for a term of 4 years (or, if less, for 
                      the remaining life of the Panel), except as 
                      provided in clauses (ii) and (iii). The initial 
                      members shall be appointed not later than 90 days 
                      after the date of the enactment of this Act.
                          (ii) Terms of initial appointees.--Of the 
                      members first appointed under each clause of 
                      subparagraph (A), as designated by the appointing 
                      authority for each such clause--
                                    (I) one-half of such members shall 
                                be appointed for a term of 2 years; and
                                    (II) the remaining members shall be 
                                appointed for a term of 4 years.

[[Page 113 STAT. 1880]]

                          (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 President. The term of office of 
                the Chairperson shall be 4 years.
                    (H) Meetings.--The Panel shall meet at least 
                quarterly and at other times at the call of the 
                Chairperson or a majority of its members.
            (4) Director and staff of panel; experts and consultants.--
                    (A) Director.--The Panel shall have a Director who 
                shall be appointed by the Chairperson, and paid at a 
                rate, and in a manner, that is consistent with 
                guidelines established under section 7 of the Federal 
                Advisory Committee Act (5 U.S.C. App.).
                    (B) Staff.--Subject to rules prescribed by the 
                Commissioner of Social Security, the Director may 
                appoint and fix the pay of additional personnel as the 
                Director considers appropriate.
                    (C) Experts and consultants.--Subject to rules 
                prescribed by the Commissioner of Social Security, the 
                Director may procure temporary and intermittent services 
                under section 3109(b) of title 5, United States Code.
                    (D) Staff of federal agencies.--Upon request of the 
                Panel, the head of any Federal department or agency may 
                detail, on a reimbursable basis, any of the personnel of 
                that department or agency to the Panel to assist it in 
                carrying out its duties under this Act.
            (5) Powers of panel.--
                    (A) Hearings and sessions.--The Panel may, for the 
                purpose of carrying out its duties under this 
                subsection, hold such hearings, sit and act at such 
                times and places, and take such testimony and evidence 
                as the Panel considers appropriate.
                    (B) Powers of members and agents.--Any member or 
                agent of the Panel may, if authorized by the Panel, take 
                any action which the Panel is authorized to take by this 
                section.
                    (C) Mails.--The Panel may use the United States 
                mails in the same manner and under the same conditions 
                as other departments and agencies of the United States.

[[Page 113 STAT. 1881]]

            (6) Reports.--
                    (A) Interim reports.--The Panel shall submit to the 
                President and the Congress interim reports at least 
                annually.
                    (B) Final report.--The Panel shall transmit a final 
                report to the President and the Congress not later than 
                eight years after the date of the enactment of this Act. 
                The final report shall contain a detailed statement of 
                the findings and conclusions of the Panel, together with 
                its recommendations for legislation and administrative 
                actions which the Panel considers appropriate.
            (7) Termination.--The Panel shall terminate 30 days after 
        the date of the submission of its final report under paragraph 
        (6)(B).
            (8) Authorization of appropriations.--There are authorized 
        to be appropriated from the Federal Old-Age and Survivors 
        Insurance Trust Fund, the Federal Disability Insurance Trust 
        Fund, and the general fund of the Treasury, as appropriate, such 
        sums as are necessary to carry out this subsection.

              Subtitle B--Elimination of Work Disincentives

SEC. 111. WORK ACTIVITY STANDARD AS A BASIS FOR REVIEW OF AN 
            INDIVIDUAL'S DISABLED STATUS.

    (a) In General.--Section 221 of the Social Security Act (42 U.S.C. 
421) is amended by adding at the end the following new subsection:
    ``(m)(1) In any case where an individual entitled to disability 
insurance benefits under section 223 or to monthly insurance benefits 
under section 202 based on such individual's disability (as defined in 
section 223(d)) has received such benefits for at least 24 months--
            ``(A) no continuing disability review conducted by the 
        Commissioner may be scheduled for the individual solely as a 
        result of the individual's work activity;
            ``(B) no work activity engaged in by the individual may be 
        used as evidence that the individual is no longer disabled; and
            ``(C) no cessation of work activity by the individual may 
        give rise to a presumption that the individual is unable to 
        engage in work.

    ``(2) An individual to which paragraph (1) applies shall continue to 
be subject to--
            ``(A) continuing disability reviews on a regularly scheduled 
        basis that is not triggered by work; and
            ``(B) termination of benefits under this title in the event 
        that the individual has earnings that exceed the level of 
        earnings established by the Commissioner to represent 
        substantial gainful activity.''.

    (b) <<NOTE: 42 USC 421 note.>>  Effective Date.--The amendment made 
by subsection (a) shall take effect on January 1, 2002.

SEC. 112. EXPEDITED REINSTATEMENT OF DISABILITY BENEFITS.

    (a) OASDI Benefits.--Section 223 of the Social Security Act (42 
U.S.C. 423) is amended--

[[Page 113 STAT. 1882]]

            (1) by redesignating subsection (i) as subsection ( j); and
            (2) by inserting after subsection (h) the following new 
        subsection:

                     ``Reinstatement of Entitlement

    ``(i)(1)(A) Entitlement to benefits described in subparagraph 
(B)(i)(I) shall be reinstated in any case where the Commissioner 
determines that an individual described in subparagraph (B) has filed a 
request for reinstatement meeting the requirements of paragraph (2)(A) 
during the period prescribed in subparagraph (C). Reinstatement of such 
entitlement shall be in accordance with the terms of this subsection.
    ``(B) An individual is described in this subparagraph if--
            ``(i) prior to the month in which the individual files a 
        request for reinstatement--
                    ``(I) the individual was entitled to benefits under 
                this section or section 202 on the basis of disability 
                pursuant to an application filed therefor; and
                    ``(II) such entitlement terminated due to the 
                performance of substantial gainful activity;
            ``(ii) the individual is under a disability and the physical 
        or mental impairment that is the basis for the finding of 
        disability is the same as (or related to) the physical or mental 
        impairment that was the basis for the finding of disability that 
        gave rise to the entitlement described in clause (i); and
            ``(iii) the individual's disability renders the individual 
        unable to perform substantial gainful activity.

    ``(C)(i) Except as provided in clause (ii), the period prescribed in 
this subparagraph with respect to an individual is 60 consecutive months 
beginning with the month following the most recent month for which the 
individual was entitled to a benefit described in subparagraph (B)(i)(I) 
prior to the entitlement termination described in subparagraph 
(B)(i)(II).
    ``(ii) In the case of an individual who fails to file a 
reinstatement request within the period prescribed in clause (i), the 
Commissioner may extend the period if the Commissioner determines that 
the individual had good cause for the failure to so file.
    ``(2)(A)(i) A request for reinstatement shall be filed in such form, 
and containing such information, as the Commissioner may prescribe.
    ``(ii) A request for reinstatement shall include express 
declarations by the individual that the individual meets the 
requirements specified in clauses (ii) and (iii) of paragraph (1)(B).
    ``(B) A request for reinstatement filed in accordance with 
subparagraph (A) may constitute an application for benefits in the case 
of any individual who the Commissioner determines is not entitled to 
reinstated benefits under this subsection.
    ``(3) In determining whether an individual meets the requirements of 
paragraph (1)(B)(ii), the provisions of subsection (f ) shall apply.
    ``(4)(A)(i) Subject to clause (ii), entitlement to benefits 
reinstated under this subsection shall commence with the benefit payable 
for the month in which a request for reinstatement is filed.
    ``(ii) An individual whose entitlement to a benefit for any month 
would have been reinstated under this subsection had the individual 
filed a request for reinstatement before the end of such month

[[Page 113 STAT. 1883]]

shall be entitled to such benefit for such month if such request for 
reinstatement is filed before the end of the twelfth month immediately 
succeeding such month.
    ``(B)(i) Subject to clauses (ii) and (iii), the amount of the 
benefit payable for any month pursuant to the reinstatement of 
entitlement under this subsection shall be determined in accordance with 
the provisions of this title.
    ``(ii) For purposes of computing the primary insurance amount of an 
individual whose entitlement to benefits under this section is 
reinstated under this subsection, the date of onset of the individual's 
disability shall be the date of onset used in determining the 
individual's most recent period of disability arising in connection with 
such benefits payable on the basis of an application.
    ``(iii) Benefits under this section or section 202 payable for any 
month pursuant to a request for reinstatement filed in accordance with 
paragraph (2) shall be reduced by the amount of any provisional benefit 
paid to such individual for such month under paragraph (7).
    ``(C) No benefit shall be payable pursuant to an entitlement 
reinstated under this subsection to an individual for any month in which 
the individual engages in substantial gainful activity.
    ``(D) The entitlement of any individual that is reinstated under 
this subsection shall end with the benefits payable for the month 
preceding whichever of the following months is the earliest:
            ``(i) The month in which the individual dies.
            ``(ii) The month in which the individual attains retirement 
        age.
            ``(iii) The third month following the month in which the 
        individual's disability ceases.

    ``(5) Whenever an individual's entitlement to benefits under this 
section is reinstated under this subsection, entitlement to benefits 
payable on the basis of such individual's wages and self-employment 
income may be reinstated with respect to any person previously entitled 
to such benefits on the basis of an application if the Commissioner 
determines that such person satisfies all the requirements for 
entitlement to such benefits except requirements related to the filing 
of an application. The provisions of paragraph (4) shall apply to the 
reinstated entitlement of any such person to the same extent that they 
apply to the reinstated entitlement of such individual.
    ``(6) An individual to whom benefits are payable under this section 
or section 202 pursuant to a reinstatement of entitlement under this 
subsection for 24 months (whether or not consecutive) shall, with 
respect to benefits so payable after such twenty-fourth month, be deemed 
for purposes of paragraph (1)(B)(i)(I) and the determination, if 
appropriate, of the termination month in accordance with subsection 
(a)(1) of this section, or subsection (d)(1), (e)(1), or (f )(1) of 
section 202, to be entitled to such benefits on the basis of an 
application filed therefor.
    ``(7)(A) An individual described in paragraph (1)(B) who files a 
request for reinstatement in accordance with the provisions of paragraph 
(2)(A) shall be entitled to provisional benefits payable in accordance 
with this paragraph, unless the Commissioner determines that the 
individual does not meet the requirements of paragraph (1)(B)(i) or that 
the individual's declaration under paragraph (2)(A)(ii) is false. Any 
such determination by the Commissioner

[[Page 113 STAT. 1884]]

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 new 
        subsection:

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

    ``(p)(1)(A) Eligibility for benefits under this title shall be 
reinstated in any case where the Commissioner determines that an 
individual described in subparagraph (B) has filed a request for 
reinstatement meeting the requirements of paragraph (2)(A) during the 
period prescribed in subparagraph (C). Reinstatement of eligibility 
shall be in accordance with the terms of this subsection.
    ``(B) An individual is described in this subparagraph if--
            ``(i) prior to the month in which the individual files a 
        request for reinstatement--
                    ``(I) the individual was eligible for benefits under 
                this title on the basis of blindness or disability 
                pursuant to an application filed therefor; and
                    ``(II) the individual thereafter was ineligible for 
                such benefits due to earned income (or earned and 
                unearned income) for a period of 12 or more consecutive 
                months;
            ``(ii) the individual is blind or disabled and the physical 
        or mental impairment that is the basis for the finding of 
        blindness or disability is the same as (or related to) the 
        physical or mental impairment that was the basis for the finding 
        of blindness or disability that gave rise to the eligibility 
        described in clause (i);

[[Page 113 STAT. 1885]]

            ``(iii) the individual's blindness or disability renders the 
        individual unable to perform substantial gainful activity; and
            ``(iv) the individual satisfies the nonmedical requirements 
        for eligibility for benefits under this title.

    ``(C)(i) Except as provided in clause (ii), the period prescribed in 
this subparagraph with respect to an individual is 60 consecutive months 
beginning with the month following the most recent month for which the 
individual was eligible for a benefit under this title (including 
section 1619) prior to the period of ineligibility described in 
subparagraph (B)(i)(II).
    ``(ii) In the case of an individual who fails to file a 
reinstatement request within the period prescribed in clause (i), the 
Commissioner may extend the period if the Commissioner determines that 
the individual had good cause for the failure to so file.
    ``(2)(A)(i) A request for reinstatement shall be filed in such form, 
and containing such information, as the Commissioner may prescribe.
    ``(ii) A request for reinstatement shall include express 
declarations by the individual that the individual meets the 
requirements specified in clauses (ii) through (iv) of paragraph (1)(B).
    ``(B) A request for reinstatement filed in accordance with 
subparagraph (A) may constitute an application for benefits in the case 
of any individual who the Commissioner determines is not eligible for 
reinstated benefits under this subsection.
    ``(3) In determining whether an individual meets the requirements of 
paragraph (1)(B)(ii), the provisions of section 1614(a)(4) shall apply.
    ``(4)(A) Eligibility for benefits reinstated under this subsection 
shall commence with the benefit payable for the month following the 
month in which a request for reinstatement is filed.
    ``(B)(i) Subject to clause (ii), the amount of the benefit payable 
for any month pursuant to the reinstatement of eligibility under this 
subsection shall be determined in accordance with the provisions of this 
title.
    ``(ii) The benefit under this title payable for any month pursuant 
to a request for reinstatement filed in accordance with paragraph (2) 
shall be reduced by the amount of any provisional benefit paid to such 
individual for such month under paragraph (7).
    ``(C) Except as otherwise provided in this subsection, eligibility 
for benefits under this title reinstated pursuant to a request filed 
under paragraph (2) shall be subject to the same terms and conditions as 
eligibility established pursuant to an application filed therefor.
    ``(5) Whenever an individual's eligibility for benefits under this 
title is reinstated under this subsection, eligibility for such benefits 
shall be reinstated with respect to the individual's spouse if such 
spouse was previously an eligible spouse of the individual under this 
title and the Commissioner determines that such spouse satisfies all the 
requirements for eligibility for such benefits except requirements 
related to the filing of an application. The provisions of paragraph (4) 
shall apply to the reinstated eligibility of the spouse to the same 
extent that they apply to the reinstated eligibility of such individual.
    ``(6) An individual to whom benefits are payable under this title 
pursuant to a reinstatement of eligibility under this subsection for 
twenty-four months (whether or not consecutive) shall, with respect to 
benefits so payable after such twenty-fourth month, be

[[Page 113 STAT. 1886]]

deemed for purposes of paragraph (1)(B)(i)(I) to be eligible for such 
benefits on the basis of an application filed therefor.
    ``(7)(A) An individual described in paragraph (1)(B) who files a 
request for reinstatement in accordance with the provisions of paragraph 
(2)(A) shall be eligible for provisional benefits payable in accordance 
with this paragraph, unless the Commissioner determines that the 
individual does not meet the requirements of paragraph (1)(B)(i) or that 
the individual's declaration under paragraph (2)(A)(ii) is false. Any 
such determination by the Commissioner shall be final and not subject to 
review under paragraph (1) or (3) of subsection (c).
    ``(B)(i) Except as otherwise provided in clause (ii), the amount of 
a provisional benefit for a month shall equal the amount of the monthly 
benefit that would be payable to an eligible individual under this title 
with the same kind and amount of income.
    ``(ii) If the individual has a spouse who was previously an eligible 
spouse of the individual under this title and the Commissioner 
determines that such spouse satisfies all the requirements of section 
1614(b) except requirements related to the filing of an application, the 
amount of a provisional benefit for a month shall equal the amount of 
the monthly benefit that would be payable to an eligible individual and 
eligible spouse under this title with the same kind and amount of 
income.
    ``(C)(i) Provisional benefits shall begin with the month following 
the month in which a request for reinstatement is filed in accordance 
with paragraph (2)(A).
    ``(ii) Provisional benefits shall end with the earliest of--
            ``(I) the month in which the Commissioner makes a 
        determination regarding the individual's eligibility for 
        reinstated benefits;
            ``(II) the fifth month following the month for which 
        provisional benefits are first payable under clause (i); or
            ``(III) the month in which the Commissioner determines that 
        the individual does not meet the requirements of paragraph 
        (1)(B)(i) or that the individual's declaration made in 
        accordance with paragraph (2)(A)(ii) is false.

    ``(D) In any case in which the Commissioner determines that an 
individual is not eligible for reinstated benefits, any provisional 
benefits paid to the individual under this paragraph shall not be 
subject to recovery as an overpayment unless the Commissioner determines 
that the individual knew or should have known that the individual did 
not meet the requirements of paragraph (1)(B).
    ``(8) For purposes of this subsection other than paragraph (7), the 
term `benefits under this title' includes State supplementary payments 
made pursuant to an agreement under section 1616(a) of this Act or 
section 212(b) of Public Law 93-66.''.
            (2) Conforming amendments.--
                    (A) Section 1631( j)(1) of such Act (42 U.S.C. 1383( 
                j)(1)) is amended by striking the period and inserting 
                ``, or has filed a request for reinstatement of 
                eligibility under subsection (p)(2) and been determined 
                to be eligible for reinstatement.''.
                    (B) Section 1631( j)(2)(A)(i)(I) of such Act (42 
                U.S.C. 1383( j)(2)(A)(i)(I)) is amended by inserting 
                ``(other than pursuant to a request for reinstatement 
                under subsection (p))'' after ``eligible''.

    (c) <<NOTE: 42 USC 423 note.>>  Effective Date.--

[[Page 113 STAT. 1887]]

            (1) In general.--The amendments made by this section shall 
        take effect on the first day of the thirteenth month beginning 
        after the date of the enactment of this Act.
            (2) Limitation.--No benefit shall be payable under title II 
        or XVI on the basis of a request for reinstatement filed under 
        section 223(i) or 1631(p) of the Social Security Act (42 U.S.C. 
        423(i), 1383(p)) before the effective date described in 
        paragraph (1).

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

SEC. 121. WORK INCENTIVES OUTREACH PROGRAM.

    Part A of title XI of the Social Security Act (42 U.S.C. 1301 et 
seq.), as amended by section 101 of this Act, is amended by adding after 
                 section 1148 the following new section:

    ``Sec. 1149. <<NOTE: 42 USC 1320b-20.>>  (a) Establishment.--
            ``(1) In general.--The Commissioner, in consultation with 
        the Ticket to Work and Work Incentives Advisory Panel 
        established under section 101(f ) of the Ticket to Work and Work 
        Incentives Improvement Act of 1999, shall establish a community-
        based work incentives planning and assistance program for the 
        purpose of disseminating accurate information to disabled 
        beneficiaries on work incentives programs and issues related to 
        such programs.
            ``(2) Grants, cooperative agreements, contracts, and 
        outreach.--Under the program established under this section, the 
        Commissioner shall--
                    ``(A) establish a competitive program of grants, 
                cooperative agreements, or contracts to provide benefits 
                planning and assistance, including information on the 
                availability of protection and advocacy services, to 
                disabled beneficiaries, including individuals 
                participating in the Ticket to Work and Self-Sufficiency 
                Program established under section 1148, the program 
                established under section 1619, and other programs that 
                are designed to encourage disabled beneficiaries to 
                work;
                    ``(B) conduct directly, or through grants, 
                cooperative agreements, or contracts, ongoing outreach 
                efforts to disabled beneficiaries (and to the families 
                of such beneficiaries) who are potentially eligible to 
                participate in Federal or State work incentive programs 
                that are designed to assist disabled beneficiaries to 
                work, including--
                          ``(i) preparing and disseminating information 
                      explaining such programs; and
                          ``(ii) working in cooperation with other 
                      Federal, State, and private agencies and nonprofit 
                      organizations that serve disabled beneficiaries, 
                      and with agencies and organizations that focus on 
                      vocational rehabilitation and work-related 
                      training and counseling;
                    ``(C) establish a corps of trained, accessible, and 
                responsive work incentives specialists within the Social 
                Security

[[Page 113 STAT. 1888]]

                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 
        (29 U.S.C. 2811 et seq.), 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)).

[[Page 113 STAT. 1889]]

                          ``(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 (29 U.S.C. 796 et seq.), protection 
                                and advocacy organizations, client 
                                assistance programs established in 
                                accordance with section 112 of the 
                                Rehabilitation Act of 1973 (29 U.S.C. 
                                732), 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.

[[Page 113 STAT. 1890]]

            ``(4) Allocation of costs.--The costs of carrying out this 
        section shall be paid from amounts made available for the 
        administration of title II and amounts made available for the 
        administration of title XVI, and shall be allocated among those 
        amounts as appropriate.

    ``(c) Definitions.--In this section:
            ``(1) Commissioner.--The term `Commissioner' means the 
        Commissioner of Social Security.
            ``(2) Disabled beneficiary.--The term `disabled beneficiary' 
        has the meaning given that term in section 1148(k)(2).

    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $23,000,000 for each of the 
fiscal years 2000 through 2004.''.

SEC. 122. STATE GRANTS FOR WORK INCENTIVES ASSISTANCE TO DISABLED 
            BENEFICIARIES.

    Part A of title XI of the Social Security Act (42 U.S.C. 1301 et 
seq.), as amended by section 121 of this Act, is amended by adding after 
                 section 1149 the following new section:

    ``Sec. 1150. <<NOTE: 42 USC 1320b-21.>>  (a) In General.--Subject to 
subsection (c), the Commissioner may make payments in each State to the 
protection and advocacy system established pursuant to part C of title I 
of the Developmental Disabilities Assistance and Bill of Rights Act (42 
U.S.C. 6041 et seq.) for the purpose of providing services to disabled 
beneficiaries.

    ``(b) Services Provided.--Services provided to disabled 
beneficiaries pursuant to a payment made under this section may 
include--
            ``(1) information and advice about obtaining vocational 
        rehabilitation and employment services; and
            ``(2) advocacy or other services that a disabled beneficiary 
        may need to secure or regain gainful employment.

    ``(c) Application.--In order to receive payments under this section, 
a protection and advocacy system shall submit an application to the 
Commissioner, at such time, in such form and manner, and accompanied by 
such information and assurances as the Commissioner may require.
    ``(d) Amount of Payments.--
            ``(1) In general.--Subject to the amount appropriated for a 
        fiscal year for making payments under this section, a protection 
        and advocacy system shall not be paid an amount that is less 
        than--
                    ``(A) in the case of a protection and advocacy 
                system located in a State (including the District of 
                Columbia and Puerto Rico) other than Guam, American 
                Samoa, the United States Virgin Islands, and the 
                Commonwealth of the Northern Mariana Islands, the 
                greater of--
                          ``(i) $100,000; or
                          ``(ii) \1/3\ of 1 percent of the amount 
                      available for payments under this section; and
                    ``(B) in the case of a protection and advocacy 
                system located in Guam, American Samoa, the United 
                States Virgin Islands, and the Commonwealth of the 
                Northern Mariana Islands, $50,000.

[[Page 113 STAT. 1891]]

            ``(2) Inflation adjustment.--For each fiscal year in which 
        the total amount appropriated to carry out this section exceeds 
        the total amount appropriated to carry out this section in the 
        preceding fiscal year, the Commissioner shall increase each 
        minimum payment under subparagraphs (A) and (B) of paragraph (1) 
        by a percentage equal to the percentage increase in the total 
        amount so appropriated to carry out this section.

    ``(e) Annual Report.--Each protection and advocacy system that 
receives a payment under this section shall submit an annual report to 
the Commissioner and the Ticket to Work and Work Incentives Advisory 
Panel established under section 101(f ) of the Ticket to Work and Work 
Incentives Improvement Act of 1999 on the services provided to 
individuals by the system.
    ``(f ) Funding.--
            ``(1) Allocation of payments.--Payments under this section 
        shall be made from amounts made available for the administration 
        of title II and amounts made available for the administration of 
        title XVI, and shall be allocated among those amounts as 
        appropriate.
            ``(2) Carryover.--Any amounts allotted for payment to a 
        protection and advocacy system under this section for a fiscal 
        year shall remain available for payment to or on behalf of the 
        protection and advocacy system until the end of the succeeding 
        fiscal year.

    ``(g) Definitions.--In this section:
            ``(1) Commissioner.--The term `Commissioner' means the 
        Commissioner of Social Security.
            ``(2) Disabled beneficiary.--The term `disabled beneficiary' 
        has the meaning given that term in section 1148(k)(2).
            ``(3) Protection and advocacy system.--The term `protection 
        and advocacy system' means a protection and advocacy system 
        established pursuant to part C of title I of the Developmental 
        Disabilities Assistance and Bill of Rights Act (42 U.S.C. 6041 
        et seq.).

    ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $7,000,000 for each of the fiscal 
years 2000 through 2004.''.

         TITLE II--EXPANDED AVAILABILITY OF HEALTH CARE SERVICES

SEC. 201. EXPANDING STATE OPTIONS UNDER THE MEDICAID PROGRAM FOR WORKERS 
            WITH DISABILITIES.

    (a) In General.--
            (1) State option to eliminate income, assets, and resource 
        limitations for workers with disabilities buying into 
        medicaid.--Section 1902(a)(10)(A)(ii) of the Social Security Act 
        (42 U.S.C. 1396a(a)(10)(A)(ii)) is amended--
                    (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 new 
                subclause:
                                    ``(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, who is at least 16, but 
                                less than

[[Page 113 STAT. 1892]]

                                65, years of age, 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 new 
                      subclause:
                                    ``(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 new subsection:

    ``(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 new clause:
            ``(xii) employed individuals with a medically improved 
        disability (as defined in subsection (v)),''.

[[Page 113 STAT. 1893]]

            (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 new 
                subsection:

    ``(g) With respect to individuals provided medical assistance only 
under subclause (XV) or (XVI) of section 1902(a)(10)(A)(ii)--
            ``(1) a State may (in a uniform manner for individuals 
        described in either such subclause)--
                    ``(A) 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
                    ``(B) require payment of 100 percent of such 
                premiums for such year in the case of such an individual 
                who has income for a year that exceeds 250 percent of 
                the income official poverty line (referred to in 
                subsection (c)(1)) applicable to a family of the size 
                involved, except that in the case of such an individual 
                who has income for a year that does not exceed 450 
                percent of such poverty line, such requirement may only 
                apply to the extent such premiums do not exceed 7.5 
                percent of such income; and
            ``(2) such State shall require payment of 100 percent of 
        such premiums for a year by such an individual whose adjusted 
        gross income (as defined in section 62 of the Internal Revenue 
        Code of 1986) for such year exceeds $75,000, except that a State 
        may choose to subsidize such premiums by using State funds which 
        may not be federally matched under this title.

In the case of any calendar year beginning after 2000, the dollar amount 
specified in paragraph (2) shall be increased in accordance with the 
provisions of section 215(i)(2)(A)(ii).''.
            (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 
                (19) and inserting ``; or''; and
                    (B) by inserting after such paragraph the following 
                new paragraph:
            ``(20) 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 the enactment of this 
        paragraph.''.

    (b) Conforming Amendments.--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),'' before ``1905(p)(1)''.
    (c) GAO Report. <<NOTE: Deadline. 42 USC 1396a note.>> --Not later 
than 3 years after the date of the enactment of this Act, the 
Comptroller General of the United States shall submit a report to the 
Congress regarding the amendments made by this section that examines--

[[Page 113 STAT. 1894]]

            (1) the extent to which higher health care costs for 
        individuals with disabilities at higher income levels deter 
        employment or progress in employment;
            (2) whether such individuals have health insurance coverage 
        or could benefit from the State option established under such 
        amendments to provide a medicaid buy-in; and
            (3) how the States are exercising such option, including--
                    (A) how such States are exercising the flexibility 
                afforded them with regard to income disregards;
                    (B) what income and premium levels have been set;
                    (C) the degree to which States are subsidizing 
                premiums above the dollar amount specified in section 
                1916(g)(2) of the Social Security Act (42 U.S.C. 
                1396o(g)(2)); and
                    (D) the extent to which there exists any crowd-out 
                effect.

    (d) <<NOTE: 42 USC 1396a note.>>  Effective Date.--The amendments 
made by this section apply to medical assistance for items and services 
furnished on or after October 1, 2000.

SEC. 202. EXTENDING MEDICARE COVERAGE FOR OASDI DISABILITY BENEFIT 
            RECIPIENTS.

    (a) In General.--The next to last sentence of section 226(b) of the 
Social Security Act (42 U.S.C. 426) is amended by striking ``24'' and 
inserting ``78''.
    (b) <<NOTE: 42 USC 426 note.>>  Effective Date.--The amendment made 
by subsection (a) shall be effective on and after October 1, 2000.

    (c) <<NOTE: 42 USC 426 note.>>  GAO Report.--Not later than 5 years 
after the date of the enactment of this Act, the Comptroller General of 
the United States shall submit a report to the Congress that--
            (1) examines the effectiveness and cost of the amendment 
        made by subsection (a);
            (2) examines the necessity and effectiveness of providing 
        continuation of medicare coverage under section 226(b) of the 
        Social Security Act (42 U.S.C. 426(b)) to individuals whose 
        annual income exceeds the contribution and benefit base (as 
        determined under section 230 of such Act (42 U.S.C. 430));
            (3) examines the viability of providing the continuation of 
        medicare coverage under such section 226(b) based on a sliding 
        scale premium for individuals whose annual income exceeds such 
        contribution and benefit base;
            (4) examines the viability of providing the continuation of 
        medicare coverage under such section 226(b) based on a premium 
        buy-in by the beneficiary's employer in lieu of coverage under 
        private health insurance;
            (5) examines the interrelation between the use of the 
        continuation of medicare coverage under such section 226(b) and 
        the use of private health insurance coverage by individuals 
        during the extended period; and
            (6) recommends such legislative or administrative changes 
        relating to the continuation of medicare coverage for recipients 
        of social security disability benefits as the Comptroller 
        General determines are appropriate.

SEC. 203. <<NOTE: 42 USC 1320b-22.>>  GRANTS TO DEVELOP AND ESTABLISH 
            STATE INFRASTRUCTURES TO SUPPORT WORKING INDIVIDUALS WITH 
            DISABILITIES.

    (a) Establishment.--

[[Page 113 STAT. 1895]]

            (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 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 with disabilities to remain employed, 
                including individuals described in section 
                1902(a)(10)(A)(ii)(XIII) of such Act (42 U.S.C. 
                1396a(a)(10)(A)(ii)(XIII)) if the State has elected to 
                provide medical assistance under such plan to such 
                individuals.
                    (B) Definitions.--In this section:
                          (i) Employed.--The term ``employed'' means--
                                    (I) 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
                                    (II) being engaged in a work effort 
                                that meets substantial and reasonable