This document provides transcripts of witness testimony and prepared statements from the third of three Congressional hearings called to examine at the local level the administration of the social security disability review program. Opening statements are presented from Representatives J. J. Pickle and Beryl Anthony, Jr., and Senator Daniel Pryor. Additional testimonies are presented from Bill Clinton, Governor of Arkansas; representatives of Arkansas state agencies dealing with the disabled; psychiatrists, attorneys, and judges from the Office of Hearings and Appeals; and two Arkansas citizens whose benefits were terminated as a result of the social security disability review process. Topics covered include the effect of the present review procedures on disability benefits recipients, the growing pressure from the states to implement their own administrative procedures for the review program in defiance of federal guidelines, the inadequacy of administrative procedures to resolve the crisis brought about by review policies, and the need for federal legislation to ensure fair review practices. An additional submission for the record from the president of the National Association of Disability Examiners is included. (MCF)