II

106TH CONGRESS

1ST SESSION S. 1327

To amend part E of title IV of the Social Security Act to provide States

with more funding and greater flexibility in carrying out programs designed to help children make the transition from foster care to selfsufficiency, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JULY 1, 1999

Mr. CHAFEE (for himself, Mr. ROCKEFELLER, Mr. BOND, Mr. REED, Mr.

JEFFORDS, Mr. MOYNIHAN, Mr. BREAUX, Ms. LANDRIEU, Mr. KERREY,

and Ms. MIKULSKI) introduced the following bill; which was read twice

and referred to the Committee on Finance

A BILL

To amend part E of title IV of the Social Security Act

to provide States with more funding and greater flexibility in carrying out programs designed to help children

make the transition from foster care to self-sufficiency,

and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Foster Care Independence Act of 1999’’.
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1 (b) TABLE OF CONTENTS.—The table of contents of

2 this Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I—IMPROVED INDEPENDENT LIVING PROGRAM

Subtitle A—Improved Independent Living Program

Sec. 101. Improved independent living program.

Subtitle B—Related Foster Care Provision

Sec. 111. Increase in amount of assets allowable for children in foster care.

Subtitle C—Medicaid Amendments

Sec. 121. State option of medicaid coverage for adolescents leaving foster care.

Subtitle D—Welfare-To-Work Amendments

Sec. 131. Children aging out of foster care eligible for services.

TITLE II—SSI FRAUD PREVENTION

Subtitle A—Fraud Prevention and Related Provisions

Sec. 201. Liability of representative payees for overpayments to deceased recipients.

Sec. 202. Recovery of overpayments of SSI benefits from lump sum SSI benefit

payments.

Sec. 203. Additional debt collection practices.

Sec. 204. Requirement to provide State prisoner information to Federal and

federally assisted benefit programs.

Sec. 205. Rules relating to collection of overpayments from individuals convicted of crimes.

Sec. 206. Treatment of assets held in trust under the SSI program.

Sec. 207. Disposal of resources for less than fair market value under the SSI

program.

Sec. 208. Administrative procedure for imposing penalties for false or misleading statements.

Sec. 209. Exclusion of representatives and health care providers convicted of

violations from participation in social security programs.

Sec. 210. State data exchanges.

Sec. 211. Study on possible measures to improve fraud prevention and administrative processing.

Sec. 212. Annual report on amounts necessary to combat fraud.

Sec. 213. Computer matches with medicare and medicaid institutionalization

data.

Sec. 214. Access to information held by financial institutions.

Subtitle B—Benefits for Certain Veterans of World War II

Sec. 251. Establishment of program of special benefits for certain World War

II veterans.

TITLE III—CHILD SUPPORT
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Sec. 301. Elimination of enhanced matching for laboratory costs for paternity

establishment.

Sec. 302. Elimination of hold harmless provision for State share of distribution

of collected child support.

TITLE IV—TECHNICAL CORRECTIONS

Sec. 401. Technical corrections relating to amendments made by the Personal

Responsibility and Work Opportunity Reconciliation Act of

1996.

1 TITLE I—IMPROVED INDE2 PENDENT LIVING PROGRAM

3 Subtitle A—Improved Independent

4 Living Program

5 SEC. 101. IMPROVED INDEPENDENT LIVING PROGRAM.

6 (a) FINDINGS.—The Congress finds the following:

7 (1) The Adoption and Safe Families Act of

8 1997 establishes that safety, health, and perma9 nency are paramount when planning for children in

10 foster care. States are required to make reasonable

11 efforts to locate permanent families for all children,

12 including older children and teens, for whom reunifi13 cation with their biological families is not in the best

14 interests of the children.

15 (2) Older children who continue to be in foster

16 care as adolescents may become eligible for Inde17 pendent Living programs. These Independent Living

18 programs are not an alternative to permanency plan19 ning for these children. Enrollment in Independent

20 Living programs can occur concurrent with contin-
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1 ued efforts to locate, and achieve placement in, per2 manent families for older children in foster care.

3 (3) About 20,000 adolescents leave the Nation’s

4 foster care system each year because they have

5 reached 18 years of age and are expected to support

6 themselves. In addition, approximately 5,000 adoles7 cents (foster children over the age of 12) are adopt8 ed out of the foster care system each year, of whom

9 approximately 620 are over the age of 16 at the

10 time of their adoption. A large percentage of these

11 children have not yet completed their high school

12 education.

13 (4) Congress has received extensive information

14 that adolescents leaving foster care are in trouble. A

15 careful study of all the children aging out of foster

16 care in Wisconsin during 1994 showed high rates of

17 school dropout, out-of-wedlock childbearing, home18 lessness, poverty, and being the target of crime and

19 physical assaults.

20 (4) The Nation’s State and local governments,

21 with financial support from the Federal Government,

22 should offer an extensive program of education,

23 health and mental health care, training, employ24 ment, financial support, and post adoption support

25 services for adolescents leaving foster care (including
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1 those who exit foster care to adoption), with partici2 pation in such program beginning several years be3 fore high school graduation and continuing, as need4 ed, until the young adults exiting foster care estab5 lish independence or reach 21 years of age.

6 (b) IMPROVED INDEPENDENT LIVING PROGRAM.—

7 Section 477 of the Social Security Act (42 U.S.C. 677)

8 is amended to read as follows:

9 ‘‘SEC. 477. INDEPENDENT LIVING PROGRAM.

10 ‘‘(a) PURPOSE.—The purpose of this section is to

11 provide States with flexible funding that will enable the

12 States to design and conduct programs—

13 ‘‘(1) to identify children who are likely to re14 main in foster care during their teenage years and

15 that help these children make the transition to self16 sufficiency by providing services such as assistance

17 in obtaining a high school diploma, career explo18 ration, vocational training, job placement and reten19 tion, training in daily living skills, training in budg20 eting and financial management skills, substance

21 abuse prevention, and how to maintain their own

22 physical and mental health, including how to access

23 health care, mental health, and community-based

24 peer-support services;
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1 ‘‘(2) to help children leaving foster care, includ2 ing those adopted after age 16, obtain the education,

3 training, and services necessary to obtain and main4 tain employment;

5 ‘‘(3) to help children leaving foster care, includ6 ing those adopted after age 16, prepare for and

7 enter postsecondary training and education institu8 tions;

9 ‘‘(4) to provide personal and emotional support

10 to children aging out of foster care, through men11 tors, the promotion of interactions with dedicated

12 adults, and continued efforts at locating permanent

13 family resources, including adoption, for these chil14 dren; and

15 ‘‘(5) to provide financial assistance, access to

16 health and mental health care, supervised housing,

17 counseling, employment, education, permanency

18 planning, and other appropriate support and services

19 that promote active and responsible citizenship,

20 healthy development, and community membership to

21 former foster care recipients between 18 and 21

22 years of age to complement their own efforts to

23 achieve long-term self-sufficiency.

24 ‘‘(b) APPLICATIONS.—
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1 ‘‘(1) IN GENERAL.—A State may apply for

2 funds from its allotment under subsection (c) for a

3 period of 5 consecutive fiscal years by submitting to

4 the Secretary, in writing, a plan that meets the re5 quirements of paragraph (2) and the certifications

6 required by paragraph (3) with respect to the plan.

7 ‘‘(2) STATE PLAN.—A plan meets the require8 ments of this paragraph if the plan specifies which

9 State agency or agencies will administer, supervise,

10 or oversee the programs carried out under the plan,

11 and describes how the State intends to do the fol12 lowing:

13 ‘‘(A) Design and deliver programs to

14 achieve the purposes of this section in such a

15 way that each child’s health, safety, opportunity

16 for a permanent family, and successful, long17 term self-sufficiency is of paramount concern.

18 ‘‘(B) Ensure that all political subdivisions

19 in the State are served by the programs, though

20 not necessarily in a uniform manner.

21 ‘‘(C) Ensure that the programs serve chil22 dren of various ages and at various stages of

23 achieving independence.

24 ‘‘(D) Involve public and private individuals

25 and organizations familiar with, or interested in
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1 addressing, the needs of youths aging out of

2 foster care, including young people served by

3 these programs, and, where they exist, organi4 zations of youths who have been in foster care.

5 ‘‘(E) Use objective criteria for determining

6 eligibility for benefits and services under the

7 programs, and for ensuring fair and equitable

8 treatment of benefit recipients.

9 ‘‘(F) Cooperate in national evaluations of

10 the effects of the programs in achieving the

11 purposes of this section.

12 ‘‘(G) Designate an independent living coor13 dinator to oversee the delivery of benefits and

14 services under the programs.

15 ‘‘(3) CERTIFICATIONS.—The certifications re16 quired by this paragraph with respect to a plan are

17 the following:

18 ‘‘(A) A certification by the chief executive

19 officer of the State that the State will provide

20 assistance and services to children who have left

21 foster care after the age of 16 but have not at22 tained 21 years of age.

23 ‘‘(B) A certification by the chief executive

24 officer of the State that not more than 30 per25 cent of the amounts paid to the State from its
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1 allotment under subsection (c) for a fiscal year

2 will be expended for room or board for children

3 who have left foster care after the age of 16

4 and have attained 18 but not 21 years of age,

5 and that such room and board services shall be

6 supervised, including interaction between the

7 youths and adults, and the provision of such

8 services shall include a requirement that the

9 participating youths must be actively enrolled in

10 educational, vocational training, or career devel11 opment programs.

12 ‘‘(C) A certification by the chief executive

13 officer of the State that none of the amounts

14 paid to the State from its allotment under sub15 section (c) will be expended for room or board

16 for any child who has not attained 18 years of

17 age.

18 ‘‘(D) A certification by the chief executive

19 officer of the State that the State has consulted

20 widely with public and private individuals and

21 organizations familiar with, or interested in ad22 dressing, the needs of youths aging out of foster

23 care, including young people served by the pro24 grams under the plan, and, where they exist,

25 organizations of youths who have been in foster
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1 care, in developing the plan and that the State

2 has given all interested members of the public

3 at least 30 days to submit comments on the

4 plan.

5 ‘‘(E) A certification by the chief executive

6 officer of the State that the State will make

7 every effort to coordinate the State programs

8 receiving funds provided from an allotment

9 made to the State under subsection (c) with

10 other Federal and State programs for youth,

11 especially transitional living youth projects au12 thorized under part B of title III of the Juve13 nile Justice and Delinquency Prevention Act of

14 1974 and funded and administered by the De15 partment of Health and Human Services, local

16 housing programs, programs for disabled youth,

17 and school-to-work programs.

18 ‘‘(F) A certification by the chief executive

19 officer of the State that each Indian tribe in the

20 State has been informed about the programs to

21 be carried out under the plan; that each such

22 tribe has been given an opportunity to comment

23 on the plan before submission to the Secretary;

24 and that benefits and services under the pro25 grams will be made available to Indian children
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1 in the State on the same basis as to other chil2 dren in the State.

3 ‘‘(G) A certification by the chief executive

4 officer of the State that the State will use train5 ing funds provided under the program of Fed6 eral payments for foster care and adoption as7 sistance to provide training to help foster par8 ents, adoptive parents, workers in group homes,

9 and case managers understand and address the

10 issues confronting adolescents preparing for

11 independent living, with such training utilizing

12 a youth development approach, and will, to the

13 extent possible, coordinate such training with

14 the independent living program conducted for

15 adolescents.

16 ‘‘(H) A certification by the chief executive

17 officer of the State that the State will ensure

18 that each adolescent participating in any pro19 gram under this section will have a personal

20 independent living plan, and that adolescents

21 themselves will participate directly in designing

22 their own program activities that prepare them

23 for independent living and in taking personal

24 responsibility for fulfilling their program re25 quirements.
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1 ‘‘(I) A certification by the chief executive

2 officer of the State that the State has estab3 lished and will enforce standards and proce4 dures to prevent fraud and abuse in the pro5 grams carried out under the plan.

6 ‘‘(4) APPROVAL.—The Secretary shall approve

7 an application submitted by a State pursuant to

8 paragraph (1) for a period if—

9 ‘‘(A) the application is submitted on or be10 fore June 30 of the calendar year in which such

11 period begins; and

12 ‘‘(B) the Secretary finds that the applica13 tion contains the material required by para14 graph (1).

15 ‘‘(5) AUTHORITY TO IMPLEMENT CERTAIN

16 AMENDMENTS; NOTIFICATION.—A State with an ap17 plication approved under paragraph (4) may imple18 ment any amendment to the plan contained in the

19 application if the application, incorporating the

20 amendment, would be approvable under paragraph

21 (4). Within 30 days after a State implements any

22 such amendment, the State shall notify the Sec23 retary of the amendment.

24 ‘‘(6) AVAILABILITY.—The State shall make

25 available to the public any application submitted by
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1 the State pursuant to paragraph (1), and a brief

2 summary of the plan contained in the application.

3 ‘‘(c) ALLOTMENTS TO STATES.—For fiscal year 2000

4 and each succeeding fiscal year, the Secretary shall allot

5 the amount specified in subsection (h) that remains after

6 applying subsection (g)(2) among States with applications

7 approved under subsection (b) for the fiscal year in the

8 following manner:

9 ‘‘(1) The Secretary shall first allot to each

10 State an amount equal to the amount payable to the

11 State for fiscal year 1998 under this section, as in

12 effect on the day before the date of the enactment

13 of the Foster Care Independence Act of 1999.

14 ‘‘(2) From the amount remaining after carrying

15 out paragraph (1), the Secretary shall allot to each

16 State that elects the option under section

17 1902(a)(10)(A)(ii)(XV) to provide medical assist18 ance to independent foster care adolescents the sum

19 of—

20 ‘‘(A) an amount equal to one-half of the

21 amount allotted to the State under paragraph

22 (1), plus

23 ‘‘(B) an amount bearing the same ratio to

24 the amount remaining after carrying out para25 graph (1) and subparagraph (A) as the number
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1 of children in foster care under a program of

2 the State in the most recent fiscal year for

3 which such information is available bears to the

4 total number of children in such foster care in

5 all States for such most recent fiscal year.

6 ‘‘(3) REALLOTMENT OF UNUSED FUNDS.—The

7 Secretary shall use the formula provided in para8 graph (1) of this subsection to reallot among the

9 States with applications approved under subsection

10 (b) for a fiscal year any amount allotted to a State

11 under this subsection for the preceding year that is

12 not payable to the State for the preceding year.

13 ‘‘(d) USE OF FUNDS.—

14 ‘‘(1) IN GENERAL.—A State to which an

15 amount is paid from its allotment under subsection

16 (c) may use the amount in any manner that is rea17 sonably calculated to accomplish the purposes of this

18 section.

19 ‘‘(2) NO SUPPLANTATION OF OTHER FUNDS

20 AVAILABLE FOR SAME GENERAL PURPOSES.—The

21 amounts paid to a State from its allotment under

22 subsection (c) shall be used to supplement and not

23 supplant any other funds which are available for the

24 same general purposes in the State.

25 ‘‘(e) PENALTIES.—
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1 ‘‘(1) USE OF GRANT IN VIOLATION OF THIS

2 PART.—If the Secretary is made aware, by an audit

3 conducted under chapter 75 of title 31, United

4 States Code, or by any other means, that a program

5 receiving funds from an allotment made to a State

6 under subsection (c) has been operated in a manner

7 that is inconsistent with, or not disclosed in the

8 State application approved under subsection (b), the

9 Secretary shall assess a penalty against the State in

10 an amount equal to not less than 1 percent and not

11 more than 5 percent of the amount of the allotment.

12 ‘‘(2) FAILURE TO COMPLY WITH DATA REPORT13 ING REQUIREMENT.—The Secretary shall assess a

14 penalty against a State that fails during a fiscal

15 year to comply with an information collection plan

16 implemented under subsection (f) in an amount

17 equal to not less than 1 percent and not more than

18 5 percent of the amount allotted to the State for the

19 fiscal year.

20 ‘‘(3) PENALTIES BASED ON DEGREE OF NON21 COMPLIANCE.—The Secretary shall assess penalties

22 under this subsection based on the degree of non23 compliance.

24 ‘‘(f) DATA COLLECTION AND PERFORMANCE MEAS25 UREMENT.—
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1 ‘‘(1) IN GENERAL.—The Secretary, in consulta2 tion with State and local public officials responsible

3 for administering independent living and other child

4 welfare programs, child welfare advocates, members

5 of Congress, youth service providers, and research6 ers, shall—

7 ‘‘(A) develop outcome measures (such as

8 measures of educational attainment, employ9 ment, career goal-setting and development, ac10 tive participation in personal health care, devel11 opment of healthy relationships with family,

12 mentors, and other community members, as

13 well as, avoidance of dependency, homelessness,

14 nonmarital childbirth, illegal activities, sub15 stance abuse or alcohol dependence, and high16 risk behaviors) that can be used—

17 ‘‘(i) to assess the performance of

18 States in operating independent living pro19 grams, and

20 ‘‘(ii) to explicitly track all outcomes,

21 particularly those related to educational at22 tainment, for youths who are provided with

23 room and board services under such State

24 programs;
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1 ‘‘(B) identify data elements needed to

2 track—

3 ‘‘(i) the number and characteristics of

4 children receiving services under this sec5 tion;

6 ‘‘(ii) the type and quantity of services

7 being provided; and

8 ‘‘(iii) State performance on the out9 come measures;

10 ‘‘(C) develop and implement a plan to col11 lect the needed information beginning with the

12 2nd fiscal year beginning after the date of the

13 enactment of this section; and

14 ‘‘(D) ensure that the data collection plan

15 described in subparagraph (C) will be coordi16 nated with the development and implementation

17 of other data collection efforts required under

18 the Adoption and Safe Families Act of 1997

19 and the Adoption and Foster Care Reporting

20 System and the Statewide Automated Child

21 Welfare Information Systems.

22 ‘‘(2) REPORT TO THE CONGRESS.—Within 12

23 months after the date of the enactment of this sec24 tion, the Secretary shall submit to the Committee on

25 Ways and Means of the House of Representatives
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1 and the Committee on Finance of the Senate a re2 port detailing the plans and timetable for collecting

3 from the States the information described in para4 graph (1).

5 ‘‘(g) EVALUATIONS.—

6 ‘‘(1) IN GENERAL.—The Secretary shall con7 duct evaluations of such State programs funded

8 under this section as the Secretary deems to be in9 novative or of potential national significance. The

10 evaluation of any such program shall include infor11 mation on the effects of the program on education,

12 employment, and personal development. To the max13 imum extent practicable, the evaluations shall be

14 based on rigorous scientific standards including ran15 dom assignment to treatment and control groups.

16 The Secretary is encouraged to work directly with

17 State and local governments to design methods for

18 conducting the evaluations, directly or by grant, con19 tract, or cooperative agreement.

20 ‘‘(2) FUNDING OF EVALUATIONS.—The Sec21 retary shall reserve 1.5 percent of the amount speci22 fied in subsection (h) for a fiscal year to carry out,

23 during the fiscal year, evaluation, technical assist24 ance, performance measurement, and data collection

25 activities related to this section, directly or through
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1 grants, contracts, or cooperative agreements with

2 appropriate entities.

3 ‘‘(h) LIMITATIONS ON AUTHORIZATION OF APPRO4 PRIATIONS.—To carry out this section, there are author5 ized to be appropriated to the Secretary $140,000,000 for

6 each fiscal year.’’.

7 (c) PAYMENTS TO STATES.—Section 474(a)(4) of

8 such Act (42 U.S.C. 674(a)(4)) is amended to read as fol9 lows:

10 ‘‘(4) the lesser of—

11 ‘‘(A) 80 percent of the amount (if any) by

12 which—

13 ‘‘(i) the total amount expended by the

14 State during the fiscal year in which the

15 quarter occurs to carry out programs in

16 accordance with the State application ap17 proved under section 477(b) for the period

18 in which the quarter occurs (including any

19 amendment that meets the requirements of

20 section 477(b)(5)); exceeds

21 ‘‘(ii) the total amount of any penalties

22 assessed against the State under section

23 477(e) during the fiscal year in which the

24 quarter occurs; or
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1 ‘‘(B) the amount allotted to the State

2 under section 477 for the fiscal year in which

3 the quarter occurs, reduced by the total of the

4 amounts payable to the State under this para5 graph for all prior quarters in the fiscal year.’’.

6 (d) REGULATIONS.—Not later than 12 months after

7 the date of the enactment of this Act, the Secretary of

8 Health and Human Services shall issue such regulations

9 as may be necessary to carry out the amendments made

10 by this section.

11 Subtitle B—Related Foster Care

12 Provision

13 SEC. 111. INCREASE IN AMOUNT OF ASSETS ALLOWABLE

14 FOR CHILDREN IN FOSTER CARE.

15 Section 472(a) of the Social Security Act (42 U.S.C.

16 672(a)) is amended by adding at the end the following:

17 ‘‘In determining whether a child would have received aid

18 under a State plan approved under section 402 (as in ef19 fect on July 16, 1996), a child whose resources (deter20 mined pursuant to section 402(a)(7)(B), as so in effect)

21 have a combined value of not more than $10,000 shall

22 be considered to be a child whose resources have a com23 bined value of not more than $1,000 (or such lower

24 amount as the State may determine for purposes of such

25 section 402(a)(7)(B)).’’.
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1 Subtitle C—Medicaid Amendments

2 SEC. 121. STATE OPTION OF MEDICAID COVERAGE FOR

3 ADOLESCENTS LEAVING FOSTER CARE.

4 (a) IN GENERAL.—Title XIX of the Social Security

5 Act is amended—

6 (1) in section 1902(a)(10)(A)(ii) (42 U.S.C.

7 1396a(a)(10)(A)(ii))—

8 (A) by striking ‘‘or’’ at the end of sub9 clause (XIII);

10 (B) by adding ‘‘or’’ at the end of subclause

11 (XIV); and

12 (C) by adding at the end the following new

13 subclause:

14 ‘‘(XV) who are independent fos15 ter care adolescents (as defined in

16 (section 1905(v)(1));’’; and

17 (2) in section 1905 (42 U.S.C. 1396d), by add18 ing at the end the following new subsection:

19 ‘‘(v)(1) For purposes of this title, the term ‘inde20 pendent foster care adolescent’ means an individual—

21 ‘‘(A) who is under 21 years of age;

22 ‘‘(B)(i) who, on the individual’s 18th birthday,

23 was in foster care under the responsibility of a

24 State, (ii) who is described in subparagraph (A),

25 (B), or (C) of section 477(a)(2) (regardless of
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1 whether or not the State has exercised the option de2 scribed in such subparagraph (B) or (C)), or (iii)

3 who was adopted after the individual’s 16th birthday

4 and before the individual’s 18th birthday and with

5 respect to whose adoption there was in effect an

6 adoption assistance agreement described in section

7 473; and

8 ‘‘(C) who meets the income and resource stand9 ards (if any) established by the State consistent with

10 paragraph (2).

11 The State may waive the application of any resource or

12 income standard otherwise applicable under subparagraph

13 (C) for reasonable classifications of adolescents.

14 ‘‘(2) The income and resource standards (if any) es15 tablished by a State under paragraph (1)(C) may not be

16 less than the corresponding income and resource stand17 ards applied by the State under section 1931(b) and the

18 income and resource methodologies (if any) used in apply19 ing such paragraph may not be more restrictive than the

20 methodologies referred to in paragraph (2)(C) of such sec21 tion.’’.

22 (b) CONFORMING AMENDMENT.—Section 1903(f)(4)

23 of such Act (42 U.S.C. 1396b(f)(4)) is amended

24 by inserting ‘‘1902(a)(10)(A)(ii)(XV),’’ after

25 1902(a)(10)(A)(ii)((X),’’.
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1 (c) EFFECTIVE DATE.—The amendments made by

2 this section shall apply to medical assistance for items and

3 services furnished on or after October 1, 1999, without

4 regard to whether or not final regulations to carry out

5 such amendments have been promulgated by such date.

6 Subtitle D—Welfare-To-Work

7 Amendments

8 SEC. 131. CHILDREN AGING OUT OF FOSTER CARE ELIGI9 BLE FOR SERVICES.

10 (a) RECIPIENTS WITH CHARACTERISTICS OF LONG11 TERM DEPENDENCY; CHILDREN AGING OUT OF FOSTER

12 CARE.—Clause (iii) of section 403(a)(5)(C) of the Social

13 Security Act (42 U.S.C. 603(a)(5)(C)(iii)) is amended—

14 (1) in subclause (I), by striking ‘‘or’’ at the

15 end;

16 (2) in subclause (II), by striking the period at

17 the end and inserting ‘‘; or’’; and

18 (3) by inserting after subclause (II) the fol19 lowing new subclause:

20 ‘‘(III) to children—

21 ‘‘(aa) who have attained 18

22 years of age but not 25 years of

23 age; and

24 ‘‘(bb) who, on the day before

25 attaining 18 years of age were
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1 recipients of foster care mainte2 nance payments (as defined in

3 section 475(4)) under part E or

4 were in foster care under the re5 sponsibility of a State.’’.

6 (b) CONFORMING AMENDMENT.—Section

7 403(a)(5)(C)(iii) of the Social Security Act (42 U.S.C.

8 603(a)(5)(C)(iii)) is amended by inserting ‘‘HARD TO EM9 PLOY’’ before ‘‘INDIVIDUALS’’ in the heading.

10 (c) EFFECTIVE DATE.—The amendments made by

11 this section shall take effect on October 1, 1999.

12 TITLE II—SSI FRAUD

13 PREVENTION

14 Subtitle A—Fraud Prevention and

15 Related Provisions

16 SEC. 201. LIABILITY OF REPRESENTATIVE PAYEES FOR

17 OVERPAYMENTS TO DECEASED RECIPIENTS.

18 (a) AMENDMENT TO TITLE II.—Section 204(a)(2) of

19 the Social Security Act (42 U.S.C. 404(a)(2)) is amended

20 by adding at the end the following new sentence: ‘‘If any

21 payment of more than the correct amount is made to a

22 representative payee on behalf of an individual after the

23 individual’s death, the representative payee shall be liable

24 for the repayment of the overpayment, and the Commis25 sioner of Social Security shall establish an overpayment
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1 control record under the social security account number

2 of the representative payee.’’.

3 (b) AMENDMENT TO TITLE XVI.—Section

4 1631(b)(2) of such Act (42 U.S.C. 1383(b)(2)) is amend5 ed by adding at the end the following new sentence: ‘‘If

6 any payment of more than the correct amount is made

7 to a representative payee on behalf of an individual after

8 the individual’s death, the representative payee shall be

9 liable for the repayment of the overpayment, and the Com10 missioner of Social Security shall establish an overpay11 ment control record under the social security account

12 number of the representative payee.’’.

13 (c) EFFECTIVE DATE.—The amendments made by

14 this section shall apply to overpayments made 12 months

15 or more after the date of the enactment of this Act.

16 SEC. 202. RECOVERY OF OVERPAYMENTS OF SSI BENEFITS

17 FROM LUMP SUM SSI BENEFIT PAYMENTS.

18 (a) IN GENERAL.—Section 1631(b)(1)(B)(ii) of the

19 Social Security Act (42 U.S.C. 1383(b)(1)(B)(ii)) is

20 amended—

21 (1) by inserting ‘‘monthly’’ before ‘‘benefit pay22 ments’’; and

23 (2) by inserting ‘‘and in the case of an indi24 vidual or eligible spouse to whom a lump sum is pay25 able under this title (including under section
26

•S 1327 IS

1 1616(a) of this Act or under an agreement entered

2 into under section 212(a) of Public Law 93–66)

3 shall, as at least one means of recovering such over4 payment, make the adjustment or recovery from the

5 lump sum payment in an amount equal to not less

6 than the lesser of the amount of the overpayment

7 or 50 percent of the lump sum payment,’’ before

8 ‘‘unless fraud’’.

9 (b) EFFECTIVE DATE.—The amendments made by

10 this section shall take effect 12 months after the date of

11 the enactment of this Act and shall apply to amounts in12 correctly paid which remain outstanding on or after such

13 date.

14 SEC. 203. ADDITIONAL DEBT COLLECTION PRACTICES.

15 (a) IN GENERAL.—Section 1631(b) of the Social Se16 curity Act (42 U.S.C. 1383(b)) is amended—

17 (1) by redesignating paragraphs (4) and (5) as

18 paragraphs (5) and (6), respectively; and

19 (2) by inserting after paragraph (3) the fol20 lowing new paragraph:

21 ‘‘(4)(A) With respect to any delinquent amount, the

22 Commissioner of Social Security may use the collection

23 practices described in sections 3711(f), 3716, 3717, and

24 3718 of title 31, United States Code, and in section 5514

25 of title 5, United States Code, all as in effect immediately
27

•S 1327 IS

1 after the enactment of the Debt Collection Improvement

2 Act of 1996.

3 ‘‘(B) For purposes of subparagraph (A), the

4 term ‘delinquent amount’ means an amount—

5 ‘‘(i) in excess of the correct amount of pay6 ment under this title;

7 ‘‘(ii) paid to a person after such person

8 has attained 18 years of age; and

9 ‘‘(iii) determined by the Commissioner of

10 Social Security, under regulations, to be other11 wise unrecoverable under this section after such

12 person ceases to be a beneficiary under this

13 title.’’.

14 (b) CONFORMING AMENDMENTS.—Section

15 3701(d)(2) of title 31, United States Code, is amended

16 by striking ‘‘section 204(f)’’ and inserting ‘‘sections 204(f)

17 and 1631(b)(4)’’.

18 (c) TECHNICAL AMENDMENTS.—Section 204(f) of

19 the Social Security Act (42 U.S.C. 404(f)) is amended—

20 (1) by striking ‘‘3711(e)’’ and inserting

21 ‘‘3711(f)’’; and

22 (2) by inserting ‘‘all’’ before ‘‘as in effect’’.

23 (d) EFFECTIVE DATE.—The amendments made by

24 this section shall apply to debt outstanding on or after

25 the date of the enactment of this Act.
28

•S 1327 IS

1 SEC. 204. REQUIREMENT TO PROVIDE STATE PRISONER IN2 FORMATION TO FEDERAL AND FEDERALLY

3 ASSISTED BENEFIT PROGRAMS.

4 Section 1611(e)(1)(I)(ii)(II) of the Social Security

5 Act (42 U.S.C. 1382(e)(1)(I)(ii)(II)) is amended by strik6 ing ‘‘is authorized to’’ and inserting ‘‘shall’’.

7 SEC. 205. RULES RELATING TO COLLECTION OF OVERPAY8 MENTS FROM INDIVIDUALS CONVICTED OF

9 CRIMES.

10 (a) WAIVERS INAPPLICABLE TO OVERPAYMENTS BY

11 REASON OF PAYMENT IN MONTHS IN WHICH BENE12 FICIARY IS A PRISONER OR A FUGITIVE.—

13 (1) AMENDMENT TO TITLE II.—Section 204(b)

14 of the Social Security Act (42 U.S.C. 404(b)) is

15 amended—

16 (A) by inserting ‘‘(1)’’ after ‘‘(b)’’; and

17 (B) by adding at the end the following new

18 paragraph:

19 ‘‘(2) Paragraph (1) shall not apply with respect to

20 any payment to any person made during a month in which

21 such benefit was not payable under section 202(x).’’.

22 (2) AMENDMENT TO TITLE XVI.—Section

23 1631(b)(1)(B)(i) of such Act (42 U.S.C.

24 1383(b)(1)(B)(i)) is amended by inserting ‘‘unless

25 (I) section 1611(e)(1) prohibits payment to the per26 son of a benefit under this title for the month by
29

•S 1327 IS

1 reason of confinement of a type described in clause

2 (i) or (ii) of section 202(x)(1)(A), or (II) section

3 1611(e)(5) prohibits payment to the person of a

4 benefit under this title for the month,’’ after ‘‘ad5 ministration of this title’’.

6 (b) 10-YEAR PERIOD OF INELIGIBILITY FOR PER7 SONS FAILING TO NOTIFY COMMISSIONER OF OVERPAY8 MENTS IN MONTHS IN WHICH BENEFICIARY IS A PRIS9 ONER OR A FUGITIVE OR FAILING TO COMPLY WITH RE10 PAYMENT SCHEDULE FOR SUCH OVERPAYMENTS.—

11 (1) AMENDMENT TO TITLE II.—Section 202(x)

12 of such Act (42 U.S.C. 402(x)) is amended by add13 ing at the end the following new paragraph:

14 ‘‘(4)(A) No person shall be considered entitled to

15 monthly insurance benefits under this section based on the

16 person’s disability or to disability insurance benefits under

17 section 223 otherwise payable during the 10-year period

18 that begins on the date the person—

19 ‘‘(i) knowingly fails to timely notify the Com20 missioner of Social Security, in connection with any

21 application for benefits under this title, of any prior

22 receipt by such person of any benefit under this title

23 or title XVI in any month in which such benefit was

24 not payable under the preceding provisions of this

25 subsection, or
30

•S 1327 IS

1 ‘‘(ii) knowingly fails to comply with any sched2 ule imposed by the Commissioner which is for repay3 ment of overpayments comprised of payments de4 scribed in subparagraph (A) and which is in compli5 ance with section 204.

6 ‘‘(B) The Commissioner of Social Security shall, in

7 addition to any other relevant factors, take into account

8 any mental or linguistic limitations of a person (including

9 any lack of facility with the English language) in deter10 mining whether the person has knowingly failed to comply

11 with a requirement of clause (i) or (ii) of subparagraph

12 (A).’’.

13 (2) AMENDMENT TO TITLE XVI.—Section

14 1611(e)(1) of such Act (42 U.S.C. 1382(e)(1)) is

15 amended by adding at the end the following new

16 subparagraph:

17 ‘‘(J)(i) A person shall not be considered an eligible

18 individual or eligible spouse for purposes of benefits under

19 this title by reason of disability, during the 10-year period

20 that begins on the date the person—

21 ‘‘(I) knowingly fails to timely notify the Com22 missioner of Social Security, in an application for

23 benefits under this title, of any prior receipt by the

24 person of a benefit under this title or title II in a
31

•S 1327 IS

1 month in which payment to the person of a benefit

2 under this title was prohibited by—

3 ‘‘(aa) the preceding provisions of this para4 graph by reason of confinement of a type de5 scribed in clause (i) or (ii) of section

6 202(x)(1)(A); or

7 ‘‘(bb) section 1611(e)(4); or

8 ‘‘(II) knowingly fails to comply with any sched9 ule imposed by the Commissioner which is for repay10 ment of overpayments comprised of payments de11 scribed in clause (i) of this subparagraph and which

12 is in compliance with section 1631(b).

13 ‘‘(ii) The Commissioner of Social Security shall, in

14 addition to any other relevant factors, take into account

15 any mental or linguistic limitations of a person (including

16 any lack of facility with the English language) in deter17 mining whether the person has knowingly failed to comply

18 with a requirement of subclause (I) or (II) of clause (i).’’.

19 (c) CONTINUED COLLECTION EFFORTS AGAINST

20 PRISONERS.—

21 (1) AMENDMENT TO TITLE II.—Section 204(b)

22 of such Act (42 U.S.C. 404(b)), as amended by sub23 section (a)(1) of this section, is amended further by

24 adding at the end the following new paragraph:
32

•S 1327 IS

1 ‘‘(3) The Commissioner shall not refrain from recov2 ering overpayments from resources currently available to

3 any overpaid person or to such person’s estate solely be4 cause such individual is confined as described in clause

5 (i) or (ii) of section 202(x)(1)(A).’’.

6 (2) AMENDMENT TO TITLE XVI.—Section

7 1631(b)(1)(A) of such Act (42 U.S.C.

8 1383(b)(1)(A)) is amended by adding after and

9 below clause (ii) the following flush left sentence:

10 ‘‘The Commissioner shall not refrain from recovering over11 payments from resources currently available to any indi12 vidual solely because the individual is confined as de13 scribed in clause (i) or (ii) of section 202(x)(1)(A).’’.

14 (d) EFFECTIVE DATE.—The amendments made by

15 this section shall apply to overpayments made in, and to

16 benefits payable for, months beginning 24 months or more

17 after the date of the enactment of this Act.

18 SEC. 206. TREATMENT OF ASSETS HELD IN TRUST UNDER

19 THE SSI PROGRAM.

20 (a) TREATMENT AS RESOURCE.—Section 1613 of the

21 Social Security Act (42 U.S.C. 1382b) is amended by add22 ing at the end the following new subsection:
33

•S 1327 IS

1 ‘‘Trusts

2 ‘‘(e)(1) In determining the resources of an individual,

3 paragraph (3) shall apply to a trust (other than a trust

4 described in paragraph (5)) established by the individual.

5 ‘‘(2)(A) For purposes of this subsection, an individual

6 shall be considered to have established a trust if any assets

7 of the individual (or of the individual’s spouse) are trans8 ferred to the trust other than by will.

9 ‘‘(B) In the case of an irrevocable trust to which are

10 transferred the assets of an individual (or of the individ11 ual’s spouse) and the assets of any other person, this sub12 section shall apply to the portion of the trust attributable

13 to the assets of the individual (or of the individual’s

14 spouse).

15 ‘‘(C) This subsection shall apply to a trust without

16 regard to—

17 ‘‘(i) the purposes for which the trust is estab18 lished;

19 ‘‘(ii) whether the trustees have or exercise any

20 discretion under the trust;

21 ‘‘(iii) any restrictions on when or whether dis22 tributions may be made from the trust; or

23 ‘‘(iv) any restrictions on the use of distributions

24 from the trust.
34

•S 1327 IS

1 ‘‘(3)(A) In the case of a revocable trust established

2 by an individual, the corpus of the trust shall be consid3 ered a resource available to the individual.

4 ‘‘(B) In the case of an irrevocable trust established

5 by an individual, if there are any circumstances under

6 which payment from the trust could be made to or for

7 the benefit of the individual or the individual’s spouse, the

8 portion of the corpus from which payment to or for the

9 benefit of the individual or the individual’s spouse could

10 be made shall be considered a resource available to the

11 individual.

12 ‘‘(4) The Commissioner of Social Security may waive

13 the application of this subsection with respect to an indi14 vidual if the Commissioner determines that such applica15 tion would work an undue hardship (as determined on the

16 basis of criteria established by the Commissioner) on the

17 individual.

18 ‘‘(5) This subsection shall not apply to a trust de19 scribed in subparagraph (A) or (C) of section 1917(d)(4).

20 ‘‘(6) For purposes of this subsection—

21 ‘‘(A) the term ‘trust’ includes any legal instru22 ment or device that is similar to a trust;

23 ‘‘(B) the term ‘corpus’ means, with respect to

24 a trust, all property and other interests held by the

25 trust, including accumulated earnings and any other
35

•S 1327 IS

1 addition to the trust after its establishment (except

2 that such term does not include any such earnings

3 or addition in the month in which the earnings or

4 addition is credited or otherwise transferred to the

5 trust); and

6 ‘‘(C) the term ‘asset’ includes any income or re7 source of the individual or of the individual’s spouse,

8 including—

9 ‘‘(i) any income excluded by section

10 1612(b);

11 ‘‘(ii) any resource otherwise excluded by

12 this section; and

13 ‘‘(iii) any other payment or property to

14 which the individual or the individual’s spouse

15 is entitled but does not receive or have access

16 to because of action by—

17 ‘‘(I) the individual or spouse;

18 ‘‘(II) a person or entity (including a

19 court) with legal authority to act in place

20 of, or on behalf of, the individual or

21 spouse; or

22 ‘‘(III) a person or entity (including a

23 court) acting at the direction of, or on the

24 request of, the individual or spouse.’’.
36

•S 1327 IS

1 (b) TREATMENT AS INCOME.—Section 1612(a)(2) of

2 such Act (42 U.S.C. 1382a(a)(2)) is amended—

3 (1) by striking ‘‘and’’ at the end of subpara4 graph (E);

5 (2) by striking the period at the end of sub6 paragraph (F) and inserting ‘‘; and’’; and

7 (3) by adding at the end the following new sub8 paragraph:

9 ‘‘(G) any earnings of, and additions to, the cor10 pus of a trust established by an individual (within

11 the meaning of section 1613(e)), of which the indi12 vidual is a beneficiary, to which section 1613(e) ap13 plies, and, in the case of an irrevocable trust, with

14 respect to which circumstances exist under which a

15 payment from the earnings or additions could be

16 made to or for the benefit of the individual.’’.

17 (c) CONFORMING AMENDMENTS.—Section

18 1902(a)(10) of the Social Security Act (42 U.S.C.

19 1396a(a)(10)) is amended—

20 (1) by striking ‘‘and’’ at the end of subpara21 graph (E);

22 (2) by adding ‘‘and’’ at the end of subpara23 graph (F); and

24 (3) by inserting after subparagraph (F) the fol25 lowing new subparagraph:
37

•S 1327 IS

1 ‘‘(G) that, in applying eligibility criteria of

2 the supplemental security income program

3 under title XVI for purposes of determining eli4 gibility for medical assistance under the State

5 plan of an individual who is not receiving sup6 plemental security income, the State will dis7 regard the provisions of section 1613(e);’’.

8 (d) EFFECTIVE DATE.—The amendments made by

9 this section shall take effect on January 1, 2000, and shall

10 apply to trusts established on or after such date.

11 SEC. 207. DISPOSAL OF RESOURCES FOR LESS THAN FAIR

12 MARKET VALUE UNDER THE SSI PROGRAM.

13 (a) IN GENERAL.—Section 1613(c) of the Social Se14 curity Act (42 U.S.C. 1382b(c)) is amended—

15 (1) in the caption, by striking ‘‘Notification of

16 Medicaid Policy Restricting Eligibility of Institu17 tionalized Individuals for Benefits Based on’’;

18 (2) in paragraph (1)—

19 (A) in subparagraph (A)—

20 (i) by inserting ‘‘paragraph (1) and’’

21 after ‘‘provisions of’’;

22 (ii) by striking ‘‘title XIX’’ the first

23 place it appears and inserting ‘‘this title

24 and title XIX, respectively,’’;
38

•S 1327 IS

1 (iii) by striking ‘‘subparagraph (B)’’

2 and inserting ‘‘clause (ii)’’;

3 (iv) by striking ‘‘paragraph (2)’’ and

4 inserting ‘‘subparagraph (B)’’;

5 (B) in subparagraph (B)—

6 (i) by striking ‘‘by the State agency’’;

7 and

8 (ii) by striking ‘‘section 1917(c)’’ and

9 all that follows and inserting ‘‘paragraph

10 (1) or section 1917(c).’’; and

11 (C) by redesignating subparagraphs (A)

12 and (B) as clauses (i) and (ii), respectively;

13 (3) in paragraph (2)—

14 (A) by striking ‘‘(2)’’ and inserting ‘‘(B)’’;

15 and

16 (B) by striking ‘‘paragraph (1)(B)’’ and

17 inserting ‘‘subparagraph (A)(ii)’’;

18 (4) by striking ‘‘(c)(1)’’ and inserting ‘‘(2)(A)’’;

19 and

20 (5) by inserting before paragraph (2) (as so re21 designated by paragraph (4) of this subsection) the

22 following new subsection:

23 ‘‘(c)(1)(A)(i) If an individual or the spouse of an indi24 vidual disposes of resources for less than fair market value

25 on or after the look-back date described in clause (ii)(I),
39

•S 1327 IS

1 the individual is ineligible for benefits under this title for

2 months during the period beginning on the date described

3 in clause (iii) and equal to the number of months cal4 culated as provided in clause (iv).

5 ‘‘(ii)(I) The look-back date described in this sub6 clause is a date that is 36 months before the date de7 scribed in subclause (II).

8 ‘‘(II) The date described in this subclause is the date

9 on which the individual applies for benefits under this title

10 or, if later, the date on which the individual (or the spouse

11 of the individual) disposes of resources for less than fair

12 market value.

13 ‘‘(iii) The date described in this clause is the first

14 day of the first month in or after which resources were

15 disposed of for less than fair market value and which does

16 not occur in any other period of ineligibility under this

17 paragraph.

18 ‘‘(iv) The number of months calculated under this

19 clause shall be equal to—

20 ‘‘(I) the total, cumulative uncompensated value

21 of all resources so disposed of by the individual (or

22 the spouse of the individual) on or after the look23 back date described in clause (ii)(I); divided by

24 ‘‘(II) the amount of the maximum monthly ben25 efit payable under section 1611(b), plus the amount
40

•S 1327 IS

1 (if any) of the maximum State supplementary pay2 ment corresponding to the State’s payment level ap3 plicable to the individual’s living arrangement and

4 eligibility category that would otherwise be payable

5 to the individual by the Commissioner pursuant to

6 an agreement under section 1616(a) of this Act or

7 section 212(b) of Public Law 93–66, for the month

8 in which occurs the date described in clause (ii)(II),

9 rounded, in the case of any fraction, to the nearest whole

10 number, but shall not in any case exceed 36 months.

11 ‘‘(B)(i) Notwithstanding subparagraph (A), this sub12 section shall not apply to a transfer of a resource to a

13 trust if the portion of the trust attributable to the resource

14 is considered a resource available to the individual pursu15 ant to subsection (e)(3) (or would be so considered but

16 for the application of subsection (e)(4)).

17 ‘‘(ii) In the case of a trust established by an indi18 vidual or an individual’s spouse (within the meaning of

19 subsection (e)), if from such portion of the trust, if any,

20 that is considered a resource available to the individual

21 pursuant to subsection (e)(3) (or would be so considered

22 but for the application of subsection (e)(4)) or the residue

23 of the portion on the termination of the trust—

24 ‘‘(I) there is made a payment other than to or

25 for the benefit of the individual; or
41

•S 1327 IS

1 ‘‘(II) no payment could under any circumstance

2 be made to the individual,

3 then, for purposes of this subsection, the payment de4 scribed in clause (I) or the foreclosure of payment de5 scribed in clause (II) shall be considered a transfer of re6 sources by the individual or the individual’s spouse as of

7 the date of the payment or foreclosure, as the case may

8 be.

9 ‘‘(C) An individual shall not be ineligible for benefits

10 under this title by reason of the application of this para11 graph to a disposal of resources by the individual or the

12 spouse of the individual, to the extent that—

13 ‘‘(i) the resources are a home and title to the

14 home was transferred to—

15 ‘‘(I) the spouse of the transferor;

16 ‘‘(II) a child of the transferor who has not

17 attained 21 years of age, or is blind or disabled;

18 ‘‘(III) a sibling of the transferor who has

19 an equity interest in such home and who was

20 residing in the transferor’s home for a period of

21 at least 1 year immediately before the date the

22 transferor becomes an institutionalized indi23 vidual; or

24 ‘‘(IV) a son or daughter of the transferor

25 (other than a child described in subclause (II))
42

•S 1327 IS

1 who was residing in the transferor’s home for

2 a period of at least 2 years immediately before

3 the date the transferor becomes an institu4 tionalized individual, and who provided care to

5 the transferor which permitted the transferor to

6 reside at home rather than in such an institu7 tion or facility;

8 ‘‘(ii) the resources—

9 ‘‘(I) were transferred to the transferor’s

10 spouse or to another for the sole benefit of the

11 transferor’s spouse;

12 ‘‘(II) were transferred from the trans13 feror’s spouse to another for the sole benefit of

14 the transferor’s spouse;

15 ‘‘(III) were transferred to, or to a trust

16 (including a trust described in section

17 1917(d)(4)) established solely for the benefit of,

18 the transferor’s child who is blind or disabled;

19 or

20 ‘‘(IV) were transferred to a trust (includ21 ing a trust described in section 1917(d)(4)) es22 tablished solely for the benefit of an individual

23 who has not attained 65 years of age and who

24 is disabled;
43

•S 1327 IS

1 ‘‘(iii) a satisfactory showing is made to the

2 Commissioner of Social Security (in accordance with

3 regulations promulgated by the Commissioner)

4 that—

5 ‘‘(I) the individual who disposed of the re6 sources intended to dispose of the resources ei7 ther at fair market value, or for other valuable

8 consideration;

9 ‘‘(II) the resources were transferred exclu10 sively for a purpose other than to qualify for

11 benefits under this title; or

12 ‘‘(III) all resources transferred for less

13 than fair market value have been returned to

14 the transferor; or

15 ‘‘(iv) the Commissioner determines, under pro16 cedures established by the Commissioner, that the

17 denial of eligibility would work an undue hardship as

18 determined on the basis of criteria established by the

19 Commissioner.

20 ‘‘(D) For purposes of this subsection, in the case of

21 a resource held by an individual in common with another

22 person or persons in a joint tenancy, tenancy in common,

23 or similar arrangement, the resource (or the affected por24 tion of such resource) shall be considered to be disposed

25 of by the individual when any action is taken, either by
44

•S 1327 IS

1 the individual or by any other person, that reduces or

2 eliminates the individual’s ownership or control of such re3 source.

4 ‘‘(E) In the case of a transfer by the spouse of an

5 individual that results in a period of ineligibility for the

6 individual under this subsection, the Commissioner shall

7 apportion the period (or any portion of the period) among

8 the individual and the individual’s spouse if the spouse be9 comes eligible for benefits under this title.

10 ‘‘(F) For purposes of this paragraph—

11 ‘‘(i) the term ‘benefits under this title’ includes

12 payments of the type described in section 1616(a) of

13 this Act and of the type described in section 212(b)

14 of Public Law 93–66;

15 ‘‘(ii) the term ‘institutionalized individual’ has

16 the meaning given such term in section 1917(e)(3);

17 and

18 ‘‘(iii) the term ‘trust’ has the meaning given

19 such term in subsection (e)(6)(A) of this section.’’.

20 (b) CONFORMING AMENDMENT.—Section

21 1902(a)(10) of the Social Security Act (42 U.S.C.

22 1396a(a)(10)), as amended by section 206(c) of this Act,

23 is amended by striking ‘‘section 1613(e)’’ and inserting

24 ‘‘subsections (c) and (e) of section 1613’’.
45

•S 1327 IS

1 (c) EFFECTIVE DATE.—The amendments made by

2 this section shall be effective with respect to disposals

3 made on or after the date of the enactment of this Act.

4 SEC. 208. ADMINISTRATIVE PROCEDURE FOR IMPOSING

5 PENALTIES FOR FALSE OR MISLEADING

6 STATEMENTS.

7 (a) IN GENERAL.—Part A of title XI of the Social

8 Security Act (42 U.S.C. 1301 et seq.) is amended by in9 serting after section 1129 the following new section:

10 ‘‘SEC. 1129A. ADMINISTRATIVE PROCEDURE FOR IMPOSING

11 PENALTIES FOR FALSE OR MISLEADING

12 STATEMENTS.

13 ‘‘(a) IN GENERAL.—Any person who makes, or

14 causes to be made, a statement or representation of a ma15 terial fact for use in determining any initial or continuing

16 right to or the amount of—

17 ‘‘(1) monthly insurance benefits under title II;

18 or

19 ‘‘(2) benefits or payments under title XVI,

20 that the person knows or should know is false or mis21 leading or knows or should know omits a material fact

22 or makes such a statement with knowing disregard for the

23 truth shall be subject to, in addition to any other penalties

24 that may be prescribed by law, a penalty described in sub-
46

•S 1327 IS

1 section (b) to be imposed by the Commissioner of Social

2 Security.

3 ‘‘(b) PENALTY.—The penalty described in this sub4 section is—

5 ‘‘(1) nonpayment of benefits under title II that

6 would otherwise be payable to the person; and

7 ‘‘(2) ineligibility for cash benefits under title

8 XVI,

9 for each month that begins during the applicable period

10 described in subsection (c).

11 ‘‘(c) DURATION OF PENALTY.—The duration of the

12 applicable period, with respect to a determination by the

13 Commissioner under subsection (a) that a person has en14 gaged in conduct described in subsection (a), shall be—

15 ‘‘(1) 6 consecutive months, in the case of a first

16 such determination with respect to the person;

17 ‘‘(2) 12 consecutive months, in the case of a

18 second such determination with respect to the per19 son; and

20 ‘‘(3) 24 consecutive months, in the case of a

21 third or subsequent such determination with respect

22 to the person.

23 ‘‘(d) EFFECT ON OTHER ASSISTANCE.—A person

24 subject to a period of nonpayment of benefits under title

25 II or ineligibility for title XVI benefits by reason of this
47

•S 1327 IS

1 section nevertheless shall be considered to be eligible for

2 and receiving such benefits, to the extent that the person

3 would be receiving or eligible for such benefits but for the

4 imposition of the penalty, for purposes of—

5 ‘‘(1) determination of the eligibility of the per6 son for benefits under titles XVIII and XIX; and

7 ‘‘(2) determination of the eligibility or amount

8 of benefits payable under title II or XVI to another

9 person.

10 ‘‘(e) DEFINITION.—In this section, the term ‘benefits

11 under title XVI’ includes State supplementary payments

12 made by the Commissioner pursuant to an agreement

13 under section 1616(a) of this Act or section 212(b) of

14 Public Law 93–66.

15 ‘‘(f) CONSULTATIONS.—The Commissioner of Social

16 Security shall consult with the Inspector General of the

17 Social Security Administration regarding initiating actions

18 under this section.’’.

19 (b) CONFORMING AMENDMENT PRECLUDING DE20 LAYED RETIREMENT CREDIT FOR ANY MONTH TO WHICH

21 A NONPAYMENT OF BENEFITS PENALTY APPLIES.—Sec22 tion 202(w)(2)(B) of such Act (42 U.S.C. 402(w)(2)(B))

23 is amended—

24 (1) by striking ‘‘and’’ at the end of clause (i);
48

•S 1327 IS

1 (2) by striking the period at the end of clause

2 (ii) and inserting ‘‘, and’’; and

3 (3) by adding at the end the following new

4 clause:

5 ‘‘(iii) such individual was not subject to a

6 penalty imposed under section 1129A.’’.

7 (c) ELIMINATION OF REDUNDANT PROVISION.—Sec8 tion 1611(e) of such Act (42 U.S.C. 1382(e)) is

9 amended—

10 (1) by striking paragraph (4);

11 (2) in paragraph (6)(A)(i), by striking ‘‘(5)’’

12 and inserting ‘‘(4)’’; and

13 (3) by redesignating paragraphs (5) and (6) as

14 paragraphs (4) and (5), respectively.

15 (d) REGULATIONS.—Within 6 months after the date

16 of the enactment of this Act, the Commissioner of Social

17 Security shall develop regulations that prescribe the ad18 ministrative process for making determinations under sec19 tion 1129A of the Social Security Act (including when the

20 applicable period in subsection (c) of such section shall

21 commence), and shall provide guidance on the exercise of

22 discretion as to whether the penalty should be imposed

23 in particular cases.
49

•S 1327 IS

1 (e) EFFECTIVE DATE.—The amendments made by

2 this section shall apply to statements and representations

3 made on or after the date of the enactment of this Act.

4 SEC. 209. EXCLUSION OF REPRESENTATIVES AND HEALTH

5 CARE PROVIDERS CONVICTED OF VIOLA6 TIONS FROM PARTICIPATION IN SOCIAL SE7 CURITY PROGRAMS.

8 (a) IN GENERAL.—Part A of title XI of the Social

9 Security Act (42 U.S.C. 1301–1320b–17) is amended by

10 adding at the end the following new section:

11 ‘‘EXCLUSION OF REPRESENTATIVES AND HEALTH CARE

12 PROVIDERS CONVICTED OF VIOLATIONS FROM PAR13 TICIPATION IN SOCIAL SECURITY PROGRAMS

14 ‘‘SEC. 1148. (a) IN GENERAL.—The Commissioner

15 of Social Security shall exclude from participation in the

16 social security programs any representative or health care

17 provider—

18 ‘‘(1) who is convicted of a violation of section

19 208 or 1632 of this Act,

20 ‘‘(2) who is convicted of any violation under

21 title 18, United States Code, relating to an initial

22 application for or continuing entitlement to, or

23 amount of, benefits under title II of this Act, or an

24 initial application for or continuing eligibility for, or

25 amount of, benefits under title XVI of this Act, or
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•S 1327 IS

1 ‘‘(3) who the Commissioner determines has

2 committed an offense described in section

3 1129(a)(1) of this Act.

4 ‘‘(b) NOTICE, EFFECTIVE DATE, AND PERIOD OF

5 EXCLUSION.—(1) An exclusion under this section shall be

6 effective at such time, for such period, and upon such rea7 sonable notice to the public and to the individual excluded

8 as may be specified in regulations consistent with para9 graph (2).

10 ‘‘(2) Such an exclusion shall be effective with respect

11 to services furnished to any individual on or after the ef12 fective date of the exclusion. Nothing in this section may

13 be construed to preclude, in determining disability under

14 title II or title XVI, consideration of any medical evidence

15 derived from services provided by a health care provider

16 before the effective date of the exclusion of the health care

17 provider under this section.

18 ‘‘(3)(A) The Commissioner shall specify, in the notice

19 of exclusion under paragraph (1), the period of the exclu20 sion.

21 ‘‘(B) Subject to subparagraph (C), in the case of an

22 exclusion under subsection (a), the minimum period of ex23 clusion shall be five years, except that the Commissioner

24 may waive the exclusion in the case of an individual who

25 is the sole source of essential services in a community. The
51

•S 1327 IS

1 Commissioner’s decision whether to waive the exclusion

2 shall not be reviewable.

3 ‘‘(C) In the case of an exclusion of an individual

4 under subsection (a) based on a conviction or a determina5 tion described in subsection (a)(3) occurring on or after

6 the date of the enactment of this section, if the individual

7 has (before, on, or after such date of enactment) been con8 victed, or if such a determination has been made with re9 spect to the individual—

10 ‘‘(i) on one previous occasion of one or more of11 fenses for which an exclusion may be effected under

12 such subsection, the period of the exclusion shall be

13 not less than 10 years, or

14 ‘‘(ii) on 2 or more previous occasions of one or

15 more offenses for which an exclusion may be effected

16 under such subsection, the period of the exclusion

17 shall be permanent.

18 ‘‘(c) NOTICE TO STATE AGENCIES.—The Commis19 sioner shall promptly notify each appropriate State agency

20 employed for the purpose of making disability determina21 tions under section 221 or 1633(a)—

22 ‘‘(1) of the fact and circumstances of each ex23 clusion effected against an individual under this sec24 tion, and
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•S 1327 IS

1 ‘‘(2) of the period (described in subsection

2 (b)(3)) for which the State agency is directed to ex3 clude the individual from participation in the activi4 ties of the State agency in the course of its employ5 ment.

6 ‘‘(d) NOTICE TO STATE LICENSING AGENCIES.—The

7 Commissioner shall—

8 ‘‘(1) promptly notify the appropriate State or

9 local agency or authority having responsibility for

10 the licensing or certification of an individual ex11 cluded from participation under this section of the

12 fact and circumstances of the exclusion,

13 ‘‘(2) request that appropriate investigations be

14 made and sanctions invoked in accordance with ap15 plicable State law and policy, and

16 ‘‘(3) request that the State or local agency or

17 authority keep the Commissioner and the Inspector

18 General of the Social Security Administration fully

19 and currently informed with respect to any actions

20 taken in response to the request.

21 ‘‘(e) NOTICE, HEARING, AND JUDICIAL REVIEW.—

22 (1) Any individual who is excluded (or directed to be ex23 cluded) from participation under this section is entitled

24 to reasonable notice and opportunity for a hearing thereon

25 by the Commissioner to the same extent as is provided
53

•S 1327 IS

1 in section 205(b), and to judicial review of the Commis2 sioner’s final decision after such hearing as is provided

3 in section 205(g).

4 ‘‘(2) The provisions of section 205(h) shall apply with

5 respect to this section to the same extent as it is applicable

6 with respect to title II.

7 ‘‘(f) APPLICATION FOR TERMINATION OF EXCLU8 SION.—(1) An individual excluded from participation

9 under this section may apply to the Commissioner, in the

10 manner specified by the Commissioner in regulations and

11 at the end of the minimum period of exclusion provided

12 under subsection (b)(3) and at such other times as the

13 Commissioner may provide, for termination of the exclu14 sion effected under this section.

15 ‘‘(2) The Commissioner may terminate the exclusion

16 if the Commissioner determines, on the basis of the con17 duct of the applicant which occurred after the date of the

18 notice of exclusion or which was unknown to the Commis19 sioner at the time of the exclusion, that—

20 ‘‘(A) there is no basis under subsection (a) for

21 a continuation of the exclusion, and

22 ‘‘(B) there are reasonable assurances that the

23 types of actions which formed the basis for the origi24 nal exclusion have not recurred and will not recur.
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•S 1327 IS

1 ‘‘(3) The Commissioner shall promptly notify each

2 State agency employed for the purpose of making dis3 ability determinations under section 221 or 1633(a) of the

4 fact and circumstances of each termination of exclusion

5 made under this subsection.

6 ‘‘(g) AVAILABILITY OF RECORDS OF EXCLUDED

7 REPRESENTATIVES AND HEALTH CARE PROVIDERS.—

8 Nothing in this section shall be construed to have the ef9 fect of limiting access by any applicant or beneficiary

10 under title II or XVI, any State agency acting under sec11 tion 221 or 1633(a), or the Commissioner to records main12 tained by any representative or health care provider in

13 connection with services provided to the applicant or bene14 ficiary prior to the exclusion of such representative or

15 health care provider under this section.

16 ‘‘(h) REPORTING REQUIREMENT.—Any representa17 tive or health care provider participating in, or seeking

18 to participate in, a social security program shall inform

19 the Commissioner, in such form and manner as the Com20 missioner shall prescribe by regulation, whether such rep21 resentative or health care provider has been convicted of

22 a violation described in subsection (a).

23 ‘‘(i) DELEGATION OF AUTHORITY.—The Commis24 sioner may delegate authority granted by this section to

25 the Inspector General.
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•S 1327 IS

1 ‘‘(j) DEFINITIONS.—For purposes of this section:

2 ‘‘(1) EXCLUDE.—The term ‘exclude’ from par3 ticipation means—

4 ‘‘(A) in connection with a representative,

5 to prohibit from engaging in representation of

6 an applicant for, or recipient of, benefits, as a

7 representative payee under section 205(j) or

8 1631(a)(2)(A)(ii), or otherwise as a representa9 tive, in any hearing or other proceeding relating

10 to entitlement to benefits, and

11 ‘‘(B) in connection with a health care pro12 vider, to prohibit from providing items or serv13 ices to an applicant for, or recipient of, benefits

14 for the purpose of assisting such applicant or

15 recipient in demonstrating disability.

16 ‘‘(2) SOCIAL SECURITY PROGRAM.—The term

17 ‘social security programs’ means the program pro18 viding for monthly insurance benefits under title II,

19 and the program providing for monthly supplemental

20 security income benefits to individuals under title

21 XVI (including State supplementary payments made

22 by the Commissioner pursuant to an agreement

23 under section 1616(a) of this Act or section 212(b)

24 of Public Law 93–66).
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•S 1327 IS

1 ‘‘(3) CONVICTED.—An individual is considered

2 to have been ‘convicted’ of a violation—

3 ‘‘(A) when a judgment of conviction has

4 been entered against the individual by a Fed5 eral, State, or local court, except if the judg6 ment of conviction has been set aside or ex7 punged;

8 ‘‘(B) when there has been a finding of

9 guilt against the individual by a Federal, State,

10 or local court;

11 ‘‘(C) when a plea of guilty or nolo

12 contendere by the individual has been accepted

13 by a Federal, State, or local court; or

14 ‘‘(D) when the individual has entered into

15 participation in a first offender, deferred adju16 dication, or other arrangement or program

17 where judgment of conviction has been with18 held.’’.

19 (b) EFFECTIVE DATE.—The amendment made by

20 this section shall apply with respect to convictions of viola21 tions described in paragraphs (1) and (2) of section

22 1148(a) of the Social Security Act and determinations de23 scribed in paragraph (3) of such section occurring on or

24 after the date of the enactment of this Act.
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•S 1327 IS

1 SEC. 210. STATE DATA EXCHANGES.

2 Whenever the Commissioner of Social Security re3 quests information from a State for the purpose of

4 ascertaining an individual’s eligibility for benefits (or the

5 correct amount of such benefits) under title II or XVI of

6 the Social Security Act, the standards of the Commis7 sioner promulgated pursuant to section 1106 of such Act

8 or any other Federal law for the use, safeguarding, and

9 disclosure of information are deemed to meet any stand10 ards of the State that would otherwise apply to the disclo11 sure of information by the State to the Commissioner.

12 SEC. 211. STUDY ON POSSIBLE MEASURES TO IMPROVE

13 FRAUD PREVENTION AND ADMINISTRATIVE

14 PROCESSING.

15 (a) STUDY.—As soon as practicable after the date of

16 the enactment of this Act, the Commissioner of Social Se17 curity, in consultation with the Inspector General of the

18 Social Security Administration and the Attorney General,

19 shall conduct a study of possible measures to improve—

20 (1) prevention of fraud on the part of individ21 uals entitled to disability benefits under section 223

22 of the Social Security Act or benefits under section

23 202 of such Act based on the beneficiary’s disability,

24 individuals eligible for supplemental security income

25 benefits under title XVI of such Act, and applicants

26 for any such benefits; and
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•S 1327 IS

1 (2) timely processing of reported income

2 changes by individuals receiving such benefits.

3 (b) REPORT.—Not later than 1 year after the date

4 of the enactment of this Act, the Commissioner shall sub5 mit to the Committee on Ways and Means of the House

6 of Representatives and the Committee on Finance of the

7 Senate a written report that contains the results of the

8 Commissioner’s study under subsection (a). The report

9 shall contain such recommendations for legislative and ad10 ministrative changes as the Commissioner considers ap11 propriate.

12 SEC. 212. ANNUAL REPORT ON AMOUNTS NECESSARY TO

13 COMBAT FRAUD.

14 (a) IN GENERAL.—Section 704(b)(1) of the Social

15 Security Act (42 U.S.C. 904(b)(1)) is amended—

16 (1) by inserting ‘‘(A)’’ after ‘‘(b)(1)’’; and

17 (2) by adding at the end the following new sub18 paragraph:

19 ‘‘(B) The Commissioner shall include in the annual

20 budget prepared pursuant to subparagraph (A) an

21 itemization of the amount of funds required by the Social

22 Security Administration for the fiscal year covered by the

23 budget to support efforts to combat fraud committed by

24 applicants and beneficiaries.’’.
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1 (b) EFFECTIVE DATE.—The amendments made by

2 this section shall apply with respect to annual budgets pre3 pared for fiscal years after fiscal year 1999.

4 SEC. 213. COMPUTER MATCHES WITH MEDICARE AND MED5 ICAID INSTITUTIONALIZATION DATA.

6 (a) IN GENERAL.—Section 1611(e)(1) of the Social

7 Security Act (42 U.S.C. 1382(e)(1)), as amended by sec8 tion 205(b)(2) of this Act, is further amended by adding

9 at the end the following new subparagraph:

10 ‘‘(K) For the purpose of carrying out this paragraph,

11 the Commissioner of Social Security shall conduct periodic

12 computer matches with data maintained by the Secretary

13 of Health and Human Services under title XVIII or XIX.

14 The Secretary shall furnish to the Commissioner, in such

15 form and manner and under such terms as the Commis16 sioner and the Secretary shall mutually agree, such infor17 mation as the Commissioner may request for this purpose.

18 Information obtained pursuant to such a match may be

19 substituted for the physician’s certification otherwise re20 quired under subparagraph (G)(i).’’.

21 (b) CONFORMING AMENDMENT.—Section

22 1611(e)(1)(G) of such Act (42 U.S.C. 1382(e)(1)(G)) is

23 amended by striking ‘‘subparagraph (H)’’ and inserting

24 ‘‘subparagraph (H) or (K)’’.
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1 SEC. 214. ACCESS TO INFORMATION HELD BY FINANCIAL

2 INSTITUTIONS.

3 Section 1631(e)(1)(B) of the Social Security Act (42

4 U.S.C. 1383(e)(1)(B)) is amended—

5 (1) by striking ‘‘(B) The’’ and inserting ‘‘(B)(i)

6 The’’; and

7 (2) by adding at the end the following new

8 clause:

9 ‘‘(ii)(I) The Commissioner of Social Security may re10 quire each applicant for, or recipient of, benefits under

11 this title to provide authorization by the applicant or re12 cipient (or by any other person whose income or resources

13 are material to the determination of the eligibility of the

14 applicant or recipient for such benefits) for the Commis15 sioner to obtain (subject to the cost reimbursement re16 quirements of section 1115(a) of the Right to Financial

17 Privacy Act) from any financial institution (within the

18 meaning of section 1101(1) of such Act) any financial

19 record (within the meaning of section 1101(2) of such

20 Act) held by the institution with respect to the applicant

21 or recipient (or any such other person) whenever the Com22 missioner determines the record is needed in connection

23 with a determination with respect to such eligibility or the

24 amount of such benefits.

25 ‘‘(II) Notwithstanding section 1104(a)(1) of the

26 Right to Financial Privacy Act, an authorization provided
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1 by an applicant or recipient (or any other person whose

2 income or resources are material to the determination of

3 the eligibility of the applicant or recipient) pursuant to

4 subclause (I) of this clause shall remain effective until the

5 earliest of—

6 ‘‘(aa) the rendering of a final adverse decision

7 on the applicant’s application for eligibility for bene8 fits under this title;

9 ‘‘(bb) the cessation of the recipient’s eligibility

10 for benefits under this title; or

11 ‘‘(cc) the express revocation by the applicant or

12 recipient (or such other person referred to in sub13 clause (I)) of the authorization, in a written notifica14 tion to the Commissioner.

15 ‘‘(III)(aa) An authorization obtained by the Commis16 sioner of Social Security pursuant to this clause shall be

17 considered to meet the requirements of the Right to Fi18 nancial Privacy Act for purposes of section 1103(a) of

19 such Act, and need not be furnished to the financial insti20 tution, notwithstanding section 1104(a) of such Act.

21 ‘‘(bb) The certification requirements of section

22 1103(b) of the Right to Financial Privacy Act shall not

23 apply to requests by the Commissioner of Social Security

24 pursuant to an authorization provided under this clause.
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•S 1327 IS

1 ‘‘(cc) A request by the Commissioner pursuant to an

2 authorization provided under this clause is deemed to meet

3 the requirements of section 1104(a)(3) of the Right to Fi4 nancial Privacy Act and the flush language of section

5 1102 of such Act.

6 ‘‘(IV) The Commissioner shall inform any person who

7 provides authorization pursuant to this clause of the dura8 tion and scope of the authorization.

9 ‘‘(V) If an applicant for, or recipient of, benefits

10 under this title (or any such other person referred to in

11 subclause (I)) refuses to provide, or revokes, any author12 ization made by the applicant or recipient for the Commis13 sioner of Social Security to obtain from any financial insti14 tution any financial record, the Commissioner may, on

15 that basis, determine that the applicant or recipient is in16 eligible for benefits under this title.’’.

17 Subtitle B—Benefits for Certain

18 Veterans of World War II

19 SEC. 251. ESTABLISHMENT OF PROGRAM OF SPECIAL BEN20 EFITS FOR CERTAIN WORLD WAR II VET21 ERANS.

22 (a) IN GENERAL.—The Social Security Act is amend23 ed by inserting after title VII the following:
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1 ‘‘TITLE VIII—SPECIAL BENEFITS

2 FOR CERTAIN WORLD WAR II

3 VETERANS

‘‘TABLE OF CONTENTS

‘‘Sec. 801. Basic entitlement to benefits.

‘‘Sec. 802. Qualified individuals.

‘‘Sec. 803. Residence outside the United States.

‘‘Sec. 804. Disqualifications.

‘‘Sec. 805. Benefit amount.

‘‘Sec. 806. Applications and furnishing of information.

‘‘Sec. 807. Representative payees.

‘‘Sec. 808. Overpayments and underpayments.

‘‘Sec. 809. Hearings and review.

‘‘Sec. 810. Other administrative provisions.

‘‘Sec. 811. Penalties for fraud.

‘‘Sec. 812. Definitions.

‘‘Sec. 813. Appropriations.

4 ‘‘SEC. 801. BASIC ENTITLEMENT TO BENEFITS.

5 ‘‘Every individual who is a qualified individual under

6 section 802 shall, in accordance with and subject to the

7 provisions of this title, be entitled to a monthly benefit

8 paid by the Commissioner of Social Security for each

9 month after September 2000 (or such earlier month, if

10 the Commissioner determines is administratively feasible)

11 the individual resides outside the United States.

12 ‘‘SEC. 802. QUALIFIED INDIVIDUALS.

13 ‘‘Except as otherwise provided in this title, an

14 individual—

15 ‘‘(1) who has attained the age of 65 on or be16 fore the date of the enactment of this title;

17 ‘‘(2) who is a World War II veteran;
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1 ‘‘(3) who is eligible for a supplemental security

2 income benefit under title XVI for—

3 ‘‘(A) the month in which this title is en4 acted; and

5 ‘‘(B) the month in which the individual

6 files an application for benefits under this title;

7 ‘‘(4) whose total benefit income is less than 75

8 percent of the Federal benefit rate under title XVI;

9 ‘‘(5) who has filed an application for benefits

10 under this title; and

11 ‘‘(6) who is in compliance with all requirements

12 imposed by the Commissioner of Social Security

13 under this title,

14 shall be a qualified individual for purposes of this title.

15 ‘‘SEC. 803. RESIDENCE OUTSIDE THE UNITED STATES.

16 For purposes of section 801, with respect to any

17 month, an individual shall be regarded as residing outside

18 the United States if, on the first day of the month, the

19 individual so resides outside the United States.

20 ‘‘SEC. 804. DISQUALIFICATIONS.

21 ‘‘Notwithstanding section 802, an individual may not

22 be a qualified individual for any month—

23 ‘‘(1) that begins after the month in which the

24 Commissioner of Social Security is notified by the

25 Attorney General that the individual has been re-
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1 moved from the United States pursuant to section

2 237(a) of the Immigration and Nationality Act and

3 before the month in which the Commissioner of So4 cial Security is notified by the Attorney General that

5 the individual is lawfully admitted to the United

6 States for permanent residence;

7 ‘‘(2) during any part of which the individual is

8 outside the United States due to flight to avoid pros9 ecution, or custody or confinement after conviction,

10 under the laws of the United States or the jurisdic11 tion within the United States from which the person

12 has fled, for a crime, or an attempt to commit a

13 crime, that is a felony under the laws of the place

14 from which the individual has fled, or which, in the

15 case of the State of New Jersey, is a high mis16 demeanor under the laws of such State;

17 ‘‘(3) during any part of which the individual

18 violates a condition of probation or parole imposed

19 under Federal or State law; or

20 ‘‘(4) during any part of which the individual is

21 confined in a jail, prison, or other penal institution

22 or correctional facility pursuant to a conviction of an

23 offense.
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1 ‘‘SEC. 805. BENEFIT AMOUNT.

2 ‘‘The benefit under this title payable to a qualified

3 individual for any month shall be in an amount equal to

4 75 percent of the Federal benefit rate under title XVI for

5 the month, reduced by the amount of the qualified individ6 ual’s benefit income for the month.

7 ‘‘SEC. 806. APPLICATIONS AND FURNISHING OF INFORMA8 TION.

9 ‘‘(a) IN GENERAL.—The Commissioner of Social Se10 curity shall, subject to subsection (b), prescribe such re11 quirements with respect to the filing of applications, the

12 furnishing of information and other material, and the re13 porting of events and changes in circumstances, as may

14 be necessary for the effective and efficient administration

15 of this title.

16 ‘‘(b) VERIFICATION REQUIREMENT.—The require17 ments prescribed by the Commissioner of Social Security

18 under subsection (a) shall preclude any determination of

19 entitlement to benefits under this title solely on the basis

20 of declarations by the individual concerning qualifications

21 or other material facts, and shall provide for verification

22 of material information from independent or collateral

23 sources, and the procurement of additional information as

24 necessary in order to ensure that the benefits are provided

25 only to qualified individuals (or their representative pay26 ees) in correct amounts.
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1 ‘‘SEC. 807. REPRESENTATIVE PAYEES.

2 ‘‘(a) IN GENERAL.—If the Commissioner of Social

3 Security determines that the interest of any qualified indi4 vidual under this title would be served thereby, payment

5 of the qualified individual’s benefit under this title may

6 be made, regardless of the legal competency or incom7 petency of the qualified individual, either directly to the

8 qualified individual, or for his or her benefit, to another

9 person (the meaning of which term, for purposes of this

10 section, includes an organization) with respect to whom

11 the requirements of subsection (b) have been met (in this

12 section referred to as the qualified individual’s ‘represent13 ative payee’). If the Commissioner of Social Security de14 termines that a representative payee has misused any ben15 efit paid to the representative payee pursuant to this sec16 tion, section 205(j), or section 1631(a)(2), the Commis17 sioner of Social Security shall promptly revoke the per18 son’s designation as the qualified individual’s representa19 tive payee under this subsection, and shall make payment

20 to an alternative representative payee or, if the interest

21 of the qualified individual under this title would be served

22 thereby, to the qualified individual.

23 ‘‘(b) EXAMINATION OF FITNESS OF PROSPECTIVE

24 REPRESENTATIVE PAYEE.—
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1 ‘‘(1) Any determination under subsection (a) to

2 pay the benefits of a qualified individual to a rep3 resentative payee shall be made on the basis of—

4 ‘‘(A) an investigation by the Commissioner

5 of Social Security of the person to serve as rep6 resentative payee, which shall be conducted in

7 advance of the determination and shall, to the

8 extent practicable, include a face-to-face inter9 view with the person (or, in the case of an orga10 nization, a representative of the organization);

11 and

12 ‘‘(B) adequate evidence that the arrange13 ment is in the interest of the qualified indi14 vidual.

15 ‘‘(2) As part of the investigation referred to in

16 paragraph (1), the Commissioner of Social Security

17 shall—

18 ‘‘(A) require the person being investigated

19 to submit documented proof of the identity of

20 the person;

21 ‘‘(B) in the case of a person who has a so22 cial security account number issued for pur23 poses of the program under title II or an em24 ployer identification number issued for purposes
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•S 1327 IS

1 of the Internal Revenue Code of 1986, verify

2 the number;

3 ‘‘(C) determine whether the person has

4 been convicted of a violation of section 208,

5 811, or 1632; and

6 ‘‘(D) determine whether payment of bene7 fits to the person in the capacity as representa8 tive payee has been revoked or terminated pur9 suant to this section, section 205(j), or section

10 1631(a)(2)(A)(iii) by reason of misuse of funds

11 paid as benefits under this title, title II, or title

12 XVI, respectively.

13 ‘‘(c) REQUIREMENT FOR CENTRALIZED FILE.—The

14 Commissioner of Social Security shall establish and main15 tain a centralized file, which shall be updated periodically

16 and which shall be in a form that renders it readily retriev17 able by each servicing office of the Social Security Admin18 istration. The file shall consist of—

19 ‘‘(1) a list of the names and social security ac20 count numbers or employer identification numbers

21 (if issued) of all persons with respect to whom, in

22 the capacity of representative payee, the payment of

23 benefits has been revoked or terminated under this

24 section, section 205(j), or section 1631(a)(2)(A)(iii)
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•S 1327 IS

1 by reason of misuse of funds paid as benefits under

2 this title, title II, or title XVI, respectively; and

3 ‘‘(2) a list of the names and social security ac4 count numbers or employer identification numbers

5 (if issued) of all persons who have been convicted of

6 a violation of section 208, 811, or 1632.

7 ‘‘(d) PERSONS INELIGIBLE TO SERVE AS REP8 RESENTATIVE PAYEES.—

9 ‘‘(1) IN GENERAL.—The benefits of a qualified

10 individual may not be paid to any other person pur11 suant to this section if—

12 ‘‘(A) the person has been convicted of a

13 violation of section 208, 811, or 1632;

14 ‘‘(B) except as provided in paragraph (2),

15 payment of benefits to the person in the capac16 ity of representative payee has been revoked or

17 terminated under this section, section 205(j), or

18 section 1631(a)(2)(A)(ii) by reason of misuse of

19 funds paid as benefits under this title, title II,

20 or title XVI, respectively; or

21 ‘‘(C) except as provided in paragraph

22 (2)(B), the person is a creditor of the qualified

23 individual and provides the qualified individual

24 with goods or services for consideration.

25 ‘‘(2) EXEMPTIONS.—
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•S 1327 IS

1 ‘‘(A) The Commissioner of Social Security

2 may prescribe circumstances under which the

3 Commissioner of Social Security may grant an

4 exemption from paragraph (1) to any person on

5 a case-by-case basis if the exemption is in the

6 best interest of the qualified individual whose

7 benefits would be paid to the person pursuant

8 to this section.

9 ‘‘(B) Paragraph (1)(C) shall not apply

10 with respect to any person who is a creditor re11 ferred to in such paragraph if the creditor is—

12 ‘‘(i) a relative of the qualified indi13 vidual and the relative resides in the same

14 household as the qualified individual;

15 ‘‘(ii) a legal guardian or legal rep16 resentative of the individual;

17 ‘‘(iii) a facility that is licensed or cer18 tified as a care facility under the law of

19 the political jurisdiction in which the quali20 fied individual resides;

21 ‘‘(iv) a person who is an adminis22 trator, owner, or employee of a facility re23 ferred to in clause (iii), if the qualified in24 dividual resides in the facility, and the pay25 ment to the facility or the person is made
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•S 1327 IS

1 only after the Commissioner of Social Se2 curity has made a good faith effort to lo3 cate an alternative representative payee to

4 whom payment would serve the best inter5 ests of the qualified individual; or

6 ‘‘(v) a person who is determined by

7 the Commissioner of Social Security, on

8 the basis of written findings and pursuant

9 to procedures prescribed by the Commis10 sioner of Social Security, to be acceptable

11 to serve as a representative payee.

12 ‘‘(C) The procedures referred to in sub13 paragraph (B)(v) shall require the person who

14 will serve as representative payee to establish,

15 to the satisfaction of the Commissioner of So16 cial Security, that—

17 ‘‘(i) the person poses no risk to the

18 qualified individual;

19 ‘‘(ii) the financial relationship of the

20 person to the qualified individual poses no

21 substantial conflict of interest; and

22 ‘‘(iii) no other more suitable rep23 resentative payee can be found.

24 ‘‘(e) DEFERRAL OF PAYMENT PENDING APPOINT25 MENT OF REPRESENTATIVE PAYEE.—
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•S 1327 IS

1 ‘‘(1) IN GENERAL.—Subject to paragraph (2),

2 if the Commissioner of Social Security makes a de3 termination described in the first sentence of sub4 section (a) with respect to any qualified individual’s

5 benefit and determines that direct payment of the

6 benefit to the qualified individual would cause sub7 stantial harm to the qualified individual, the Com8 missioner of Social Security may defer (in the case

9 of initial entitlement) or suspend (in the case of ex10 isting entitlement) direct payment of the benefit to

11 the qualified individual, until such time as the selec12 tion of a representative payee is made pursuant to

13 this section.

14 ‘‘(2) TIME LIMITATION.—

15 ‘‘(A) IN GENERAL.—Except as provided in

16 subparagraph (B), any deferral or suspension of

17 direct payment of a benefit pursuant to para18 graph (1) shall be for a period of not more than

19 1 month.

20 ‘‘(B) EXCEPTION IN THE CASE OF INCOM21 PETENCY.—Subparagraph (A) shall not apply

22 in any case in which the qualified individual is,

23 as of the date of the Commissioner of Social

24 Security’s determination, legally incompetent
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1 under the laws of the jurisdiction in which the

2 individual resides.

3 ‘‘(3) PAYMENT OF RETROACTIVE BENEFITS.—

4 Payment of any benefits which are deferred or sus5 pended pending the selection of a representative

6 payee shall be made to the qualified individual or the

7 representative payee as a single sum or over such

8 period of time as the Commissioner of Social Secu9 rity determines is in the best interest of the qualified

10 individual.

11 ‘‘(f) HEARING.—Any qualified individual who is dis12 satisfied with a determination by the Commissioner of So13 cial Security to make payment of the qualified individual’s

14 benefit to a representative payee under subsection (a) of

15 this section or with the designation of a particular person

16 to serve as representative payee shall be entitled to a hear17 ing by the Commissioner of Social Security to the same

18 extent as is provided in section 809(a), and to judicial re19 view of the Commissioner of Social Security’s final deci20 sion as is provided in section 809(b).

21 ‘‘(g) NOTICE REQUIREMENTS.—

22 ‘‘(1) IN GENERAL.—In advance of the payment

23 of a qualified individual’s benefit to a representative

24 payee under subsection (a), the Commissioner of So25 cial Security shall provide written notice of the Com-
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1 missioner’s initial determination to so make the pay2 ment. The notice shall be provided to the qualified

3 individual, except that, if the qualified individual is

4 legally incompetent, then the notice shall be provided

5 solely to the legal guardian or legal representative of

6 the qualified individual.

7 ‘‘(2) SPECIFIC REQUIREMENTS.—Any notice re8 quired by paragraph (1) shall be clearly written in

9 language that is easily understandable to the reader,

10 shall identify the person to be designated as the

11 qualified individual’s representative payee, and shall

12 explain to the reader the right under subsection (f)

13 of the qualified individual or of the qualified individ14 ual’s legal guardian or legal representative—

15 ‘‘(A) to appeal a determination that a rep16 resentative payee is necessary for the qualified

17 individual;

18 ‘‘(B) to appeal the designation of a par19 ticular person to serve as the representative

20 payee of qualified individual; and

21 ‘‘(C) to review the evidence upon which the

22 designation is based and to submit additional

23 evidence.

24 ‘‘(h) ACCOUNTABILITY MONITORING.—
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1 ‘‘(1) In any case where payment under this title

2 is made to a person other than the qualified indi3 vidual entitled to the payment, the Commissioner of

4 Social Security shall establish a system of account5 ability monitoring under which the person shall re6 port not less often than annually with respect to the

7 use of the payments. The Commissioner of Social

8 Security shall establish and implement statistically

9 valid procedures for reviewing the reports in order to

10 identify instances in which persons are not properly

11 using the payments.

12 ‘‘(2) SPECIAL REPORTS.—Notwithstanding

13 paragraph (1), the Commissioner of Social Security

14 may require a report at any time from any person

15 receiving payments on behalf of a qualified indi16 vidual, if the Commissioner of Social Security has

17 reason to believe that the person receiving the pay18 ments is misusing the payments.

19 ‘‘(3) CENTRALIZED FILE.—The Commissioner

20 of Social Security shall maintain a centralized file,

21 which shall be updated periodically and which shall

22 be in a form that is readily retrievable, of—

23 ‘‘(A) the name, address, and (if issued) the

24 social security account number or employer

25 identification number of each representative
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1 payee who is receiving benefit payments pursu2 ant to this section, section 205(j), or section

3 1631(a)(2); and

4 ‘‘(B) the name, address, and social security

5 account number of each individual for whom

6 each representative payee is reported to be pro7 viding services as representative payee pursuant

8 to this section, section 205(j), or section

9 1631(a)(2).

10 ‘‘(4) The Commissioner of Social Security shall

11 maintain a list, which shall be updated periodically,

12 of public agencies and community-based nonprofit

13 social service agencies which are qualified to serve as

14 representative payees pursuant to this section and

15 which are located in the jurisdiction in which any

16 qualified individual resides.

17 ‘‘(i) RESTITUTION.—In any case

18 where the negligent failure of the Commis19 sioner of Social Security to investigate or

20 monitor a representative payee results in

21 misuse of benefits by the representative

22 payee, the Commissioner of Social Security

23 shall make payment to the qualified indi24 vidual or the individual’s alternative rep25 resentative payee of an amount equal to
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1 the misused benefits. The Commissioner of

2 Social Security shall make a good faith ef3 fort to obtain restitution from the termi4 nated representative payee.

5 ‘‘SEC. 808. OVERPAYMENTS AND UNDERPAYMENTS.

6 ‘‘(a) IN GENERAL.—Whenever the Commissioner of

7 Social Security finds that more or less than the correct

8 amount of payment has been made to any person under

9 this title, proper adjustment or recovery shall be made,

10 as follows:

11 ‘‘(1) With respect to payment to a person of

12 more than the correct amount, the Commissioner of

13 Social Security shall decrease any payment under

14 this title to which the overpaid person (if a qualified

15 individual) is entitled, or shall require the overpaid

16 person or his or her estate to refund the amount in

17 excess of the correct amount, or, if recovery is not

18 obtained under these two methods, shall seek or pur19 sue recovery by means of reduction in tax refunds

20 based on notice to the Secretary of the Treasury, as

21 authorized under section 3720A of title 31, United

22 States Code.

23 ‘‘(2) With respect to payment of less than the

24 correct amount to a qualified individual who, at the

25 time the Commissioner of Social Security is pre-
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1 pared to take action with respect to the

2 underpayment—

3 ‘‘(A) is living, the Commissioner of Social

4 Security shall make payment to the qualified in5 dividual (or the qualified individual’s represent6 ative payee designated under section 807) of

7 the balance of the amount due the underpaid

8 qualified individual; or

9 ‘‘(B) is deceased, the balance of the

10 amount due shall revert to the general fund of

11 the Treasury.

12 ‘‘(b) WAIVER OF RECOVERY OF OVERPAYMENT.—In

13 any case in which more than the correct amount of pay14 ment has been made, there shall be no adjustment of pay15 ments to, or recovery by the United States from, any per16 son who is without fault if the Commissioner of Social Se17 curity determines that the adjustment or recovery would

18 defeat the purpose of this title or would be against equity

19 and good conscience.

20 ‘‘(c) LIMITED IMMUNITY FOR DISBURSING OFFI21 CERS.—A disbursing officer may not be held liable for any

22 amount paid by the officer if the adjustment or recovery

23 of the amount is waived under subsection (b), or adjust24 ment under subsection (a) is not completed before the
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1 death of the qualified individual against whose benefits de2 ductions are authorized.

3 ‘‘(d) AUTHORIZED COLLECTION PRACTICES.—

4 ‘‘(1) IN GENERAL.—With respect to any delin5 quent amount, the Commissioner of Social Security

6 may use the collection practices described in sections

7 3711(e), 3716, and 3718 of title 31, United States

8 Code, as in effect on October 1, 1994.

9 ‘‘(2) DEFINITION.—For purposes of paragraph

10 (1), the term ‘delinquent amount’ means an

11 amount—

12 ‘‘(A) in excess of the correct amount of the

13 payment under this title; and

14 ‘‘(B) determined by the Commissioner of

15 Social Security to be otherwise unrecoverable

16 under this section from a person who is not a

17 qualified individual under this title.

18 ‘‘SEC. 809. HEARINGS AND REVIEW.

19 ‘‘(a) HEARINGS.—

20 ‘‘(1) IN GENERAL.—The Commissioner of So21 cial Security shall make findings of fact and deci22 sions as to the rights of any individual applying for

23 payment under this title. The Commissioner of So24 cial Security shall provide reasonable notice and op25 portunity for a hearing to any individual who is or
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1 claims to be a qualified individual and is in disagree2 ment with any determination under this title with

3 respect to entitlement to, or the amount of, benefits

4 under this title, if the individual requests a hearing

5 on the matter in disagreement within 60 days after

6 notice of the determination is received, and, if a

7 hearing is held, shall, on the basis of evidence ad8 duced at the hearing affirm, modify, or reverse the

9 Commissioner of Social Security’s findings of fact

10 and the decision. The Commissioner of Social Secu11 rity may, on the Commissioner of Social Security’s

12 own motion, hold such hearings and to conduct such

13 investigations and other proceedings as the Commis14 sioner of Social Security deems necessary or proper

15 for the administration of this title. In the course of

16 any hearing, investigation, or other proceeding, the

17 Commissioner may administer oaths and affirma18 tions, examine witnesses, and receive evidence. Evi19 dence may be received at any hearing before the

20 Commissioner of Social Security even though inad21 missible under the rules of evidence applicable to

22 court procedure. The Commissioner of Social Secu23 rity shall specifically take into account any physical,

24 mental, educational, or linguistic limitation of the in25 dividual (including any lack of facility with the
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1 English language) in determining, with respect to

2 the entitlement of the individual for benefits under

3 this title, whether the individual acted in good faith

4 or was at fault, and in determining fraud, deception,

5 or intent.

6 ‘‘(2) EFFECT OF FAILURE TO TIMELY REQUEST

7 REVIEW.—A failure to timely request review of an

8 initial adverse determination with respect to an ap9 plication for any payment under this title or an ad10 verse determination on reconsideration of such an

11 initial determination shall not serve as a basis for

12 denial of a subsequent application for any payment

13 under this title if the applicant demonstrates that

14 the applicant failed to so request such a review act15 ing in good faith reliance upon incorrect, incomplete,

16 or misleading information, relating to the con17 sequences of reapplying for payments in lieu of seek18 ing review of an adverse determination, provided by

19 any officer or employee of the Social Security Ad20 ministration.

21 ‘‘(3) NOTICE REQUIREMENTS.—In any notice of

22 an adverse determination with respect to which a re23 view may be requested under paragraph (1), the

24 Commissioner of Social Security shall describe in

25 clear and specific language the effect on possible en-
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1 titlement to benefits under this title of choosing to

2 reapply in lieu of requesting review of the deter3 mination.

4 ‘‘(b) JUDICIAL REVIEW.—The final determination of

5 the Commissioner of Social Security after a hearing under

6 subsection (a)(1) shall be subject to judicial review as pro7 vided in section 205(g) to the same extent as the Commis8 sioner of Social Security’s final determinations under sec9 tion 205.

10 ‘‘SEC. 810. OTHER ADMINISTRATIVE PROVISIONS.

11 ‘‘(a) REGULATIONS AND ADMINISTRATIVE ARRANGE12 MENTS.—The Commissioner of Social Security may pre13 scribe such regulations, and make such administrative and

14 other arrangements, as may be necessary or appropriate

15 to carry out this title.

16 ‘‘(b) PAYMENT OF BENEFITS.—Benefits under this

17 title shall be paid at such time or times and in such install18 ments as the Commissioner of Social Security determines

19 are in the interests of economy and efficiency.

20 ‘‘(c) ENTITLEMENT REDETERMINATIONS.—An indi21 vidual’s entitlement to benefits under this title, and the

22 amount of the benefits, may be redetermined at such time

23 or times as the Commissioner of Social Security deter24 mines to be appropriate.
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1 ‘‘(d) SUSPENSION OF BENEFITS.—Regulations pre2 scribed by the Commissioner of Social Security under sub3 section (a) may provide for the temporary suspension of

4 entitlement to benefits under this title as the Commis5 sioner determines is appropriate.

6 ‘‘SEC. 811. PENALTIES FOR FRAUD.

7 ‘‘(a) IN GENERAL.—Whoever—

8 ‘‘(1) knowingly and willfully makes or causes to

9 be made any false statement or representation of a

10 material fact in an application for benefits under

11 this title;

12 ‘‘(2) at any time knowingly and willfully makes

13 or causes to be made any false statement or rep14 resentation of a material fact for use in determining

15 any right to the benefits;

16 ‘‘(3) having knowledge of the occurrence of any

17 event affecting—

18 ‘‘(A) his or her initial or continued right to

19 the benefits; or

20 ‘‘(B) the initial or continued right to the

21 benefits of any other individual in whose behalf

22 he or she has applied for or is receiving the

23 benefit,

24 conceals or fails to disclose the event with an intent

25 fraudulently to secure the benefit either in a greater
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•S 1327 IS

1 amount or quantity than is due or when no such

2 benefit is authorized; or

3 ‘‘(4) having made application to receive any

4 such benefit for the use and benefit of another and

5 having received it, knowingly and willfully converts

6 the benefit or any part thereof to a use other than

7 for the use and benefit of the other individual,

8 shall be fined under title 18, United States Code, impris9 oned not more than 5 years, or both.

10 ‘‘(b) RESTITUTION BY REPRESENTATIVE PAYEE.—If

11 a person or organization violates subsection (a) in the per12 son’s or organization’s role as, or in applying to become,

13 a representative payee under section 807 on behalf of a

14 qualified individual, and the violation includes a willful

15 misuse of funds by the person or entity, the court may

16 also require that full or partial restitution of funds be

17 made to the qualified individual.

18 ‘‘SEC. 812. DEFINITIONS.

19 ‘‘In this title:

20 ‘‘(1) WORLD WAR II VETERAN.—The term

21 ‘World War II veteran’ means a person who served

22 during World War II—

23 ‘‘(A) in the active military, naval, or air

24 service of the United States during World War

25 II, and who was discharged or released there-
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1 from under conditions other than dishonorable

2 after service of 90 days or more; or

3 ‘‘(B) in the organized military forces of the

4 Government of the Commonwealth of the Phil5 ippines, while the forces were in the service of

6 the Armed Forces of the United States pursu7 ant to the military order of the President dated

8 July 26, 1941, including among the military

9 forces organized guerrilla forces under com10 manders appointed, designated, or subsequently

11 recognized by the Commander in Chief, South12 west Pacific Area, or other competent authority

13 in the Army of the United States, in any case

14 in which the service was rendered before De15 cember 31, 1946.

16 ‘‘(2) WORLD WAR II.—The term ‘World War II’

17 means the period beginning on September 16, 1940,

18 and ending on July 24, 1947.

19 ‘‘(3) SUPPLEMENTAL SECURITY INCOME BEN20 EFIT UNDER TITLE XVI.—The term ‘supplemental

21 security income benefit under title XVI’, except as

22 otherwise provided, includes State supplementary

23 payments which are paid by the Commissioner of

24 Social Security pursuant to an agreement under sec-
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1 tion 1616(a) of this Act or section 212(b) of Public

2 Law 93–66.

3 ‘‘(4) FEDERAL BENEFIT RATE UNDER TITLE

4 XVI.—The term ‘Federal benefit rate under title

5 XVI’ means, with respect to any month, the amount

6 of the supplemental security income cash benefit

7 (not including any State supplementary payment

8 which is paid by the Commissioner of Social Security

9 pursuant to an agreement under section 1616(a) of

10 this Act or section 212(b) of Public Law 93–66)

11 payable under title XVI for the month to an eligible

12 individual with no income.

13 ‘‘(5) UNITED STATES.—The term ‘United

14 States’ means, notwithstanding section 1101(a)(1),

15 only the 50 States, the District of Columbia, and the

16 Commonwealth of the Northern Mariana Islands.

17 ‘‘(6) BENEFIT INCOME.—The term ‘benefit in18 come’ means any recurring payment received by a

19 qualified individual as an annuity, pension, retire20 ment, or disability benefit (including any veterans’

21 compensation or pension, workmen’s compensation

22 payment, old-age, survivors, or disability insurance

23 benefit, railroad retirement annuity or pension, and

24 unemployment insurance benefit), but only if a simi25 lar payment was received by the individual from the
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1 same (or a related) source during the 12-month pe2 riod preceding the month in which the individual

3 files an application for benefits under this title.

4 ‘‘SEC. 813. APPROPRIATIONS.

5 ‘‘There are hereby appropriated for fiscal year 2001

6 and subsequent fiscal years such sums as may be nec7 essary to carry out this title.’’.

8 (b) CONFORMING AMENDMENTS.—

9 (1) SOCIAL SECURITY TRUST FUNDS LAE AC10 COUNT.—Section 201(g) of such Act (42 U.S.C.

11 401(g)) is amended—

12 (A) in the fourth sentence of paragraph

13 (1)(A), by inserting after ‘‘this title,’’ the fol14 lowing: ‘‘title VIII,’’;

15 (B) in paragraph (1)(B)(i)(I), by inserting

16 after ‘‘this title,’’ the following: ‘‘title VIII,’’;

17 and

18 (C) in paragraph (1)(C)(i), by inserting

19 after ‘‘this title,’’ the following: ‘‘title VIII,’’.

20 (2) REPRESENTATIVE PAYEE PROVISIONS OF

21 TITLE II.—Section 205(j) of such Act (42 U.S.C.

22 405(j)) is amended—

23 (A) in paragraph (1)(A), by inserting ‘‘807

24 or’’ before ‘‘1631(a)(2)’’;
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1 (B) in paragraph (2)(B)(i)(I), by inserting

2 ‘‘, title VIII,’’ before ‘‘or title XVI’’;

3 (C) in paragraph (2)(B)(i)(III), by insert4 ing ‘‘, 811,’’ before ‘‘or 1632’’;

5 (D) in paragraph (2)(B)(i)(IV)—

6 (i) by inserting ‘‘, the designation of

7 such person as a representative payee has

8 been revoked pursuant to section 807(a),’’

9 before ‘‘or payment of benefits’’; and

10 (ii) by inserting ‘‘, title VIII,’’ before

11 ‘‘or title XVI’’;

12 (E) in paragraph (2)(B)(ii)(I)—

13 (i) by inserting ‘‘whose designation as

14 a representative payee has been revoked

15 pursuant to section 807(a),’’ before ‘‘or

16 with respect to whom’’; and

17 (ii) by inserting ‘‘, title VIII,’’ before

18 ‘‘or title XVI’’;

19 (F) in paragraph (2)(B)(i)(II), by insert20 ing ‘‘, 811,’’ before ‘‘or 1632’’;

21 (G) in paragraph (2)(C)(i)(II) by inserting

22 ‘‘, the designation of such person as a rep23 resentative payee has been revoked pursuant to

24 section 807(a),’’ before ‘‘or payment of bene25 fits’’;
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1 (H) in each of clauses (i) and (ii) of para2 graph (3)(E), by inserting ‘‘, section 807,’’ be3 fore ‘‘or section 1631(a)(2)’’;

4 (I) in paragraph (3)(F), by inserting ‘‘807

5 or’’ before ‘‘1631(a)(2)’’; and

6 (J) in paragraph (4)(B)(i), by inserting

7 ‘‘807 or’’ before ‘‘1631(a)(2)’’.

8 (3) WITHHOLDING FOR CHILD SUPPORT AND

9 ALIMONY OBLIGATIONS.—Section 459(h)(1)(A) of

10 such Act (42 U.S.C. 659(h)(1)(A)) is amended—

11 (A) at the end of clause (iii), by striking

12 ‘‘and’’;

13 (B) at the end of clause (iv), by striking

14 ‘‘but’’ and inserting ‘‘and’’; and

15 (C) by adding at the end a new clause as

16 follows:

17 ‘‘(v) special benefits for certain World

18 War II veterans payable under title VIII;

19 but’’.

20 (4) SOCIAL SECURITY ADVISORY BOARD.—Sec21 tion 703(b) of such Act (42 U.S.C. 903(b)) is

22 amended by striking ‘‘title II’’ and inserting ‘‘title

23 II, the program of special benefits for certain World

24 War II veterans under title VIII,’’.
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1 (5) DELIVERY OF CHECKS.—Section 708 of

2 such Act (42 U.S.C. 908) is amended—

3 (A) in subsection (a), by striking ‘‘title II’’

4 and inserting ‘‘title II, title VIII,’’; and

5 (B) in subsection (b), by striking ‘‘title II’’

6 and inserting ‘‘title II, title VIII,’’.

7 (6) CIVIL MONETARY PENALTIES.—Section

8 1129 of such Act (42 U.S.C. 1320a–8) is

9 amended—

10 (A) in the title, by striking ‘‘II’’ and in11 serting ‘‘II, VIII’’;

12 (B) in subsection (a)(1)—

13 (i) by striking ‘‘or’’ at the end of sub14 paragraph (A);

15 (ii) by redesignating subparagraph

16 (B) as subparagraph (C); and

17 (iii) by inserting after subparagraph

18 (A) the following:

19 ‘‘(B) benefits or payments under title VIII,

20 or’’;

21 (C) in subsection (a)(2), by inserting ‘‘or

22 title VIII,’’ after ‘‘title II’’;

23 (D) in subsection (e)(1)(C)—

24 (i) by striking ‘‘or’’ at the end of

25 clause (i);
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1 (ii) by redesignating clause (ii) as

2 clause (iii); and

3 (iii) by inserting after clause (i) the

4 following:

5 ‘‘(ii) by decrease of any payment

6 under title VIII to which the person is en7 titled, or’’;

8 (E) in subsection (e)(2)(B), by striking

9 ‘‘title XVI’’ and inserting ‘‘title VIII or XVI’’;

10 and

11 (F) in subsection (l), by striking ‘‘title

12 XVI’’ and inserting ‘‘title VIII or XVI’’.

13 (7) RECOVERY OF SSI OVERPAYMENTS.—Sec14 tion 1147 of such Act (42 U.S.C. 1320b–17) is

15 amended—

16 (A) in subsection (a)(1)—

17 (i) by inserting ‘‘or VIII’’ after ‘‘title

18 II’’ the first place it appears; and

19 (ii) by striking ‘‘title II’’ the second

20 place it appears and inserting ‘‘such title’’;

21 and

22 (B) in the title, by striking ‘‘SOCIAL SECU23 RITY’’ and inserting ‘‘OTHER’’.
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1 (8) REPRESENTATIVE PAYEE PROVISIONS OF

2 TITLE XVI.—Section 1631(a)(2) of such Act (42

3 U.S.C. 1383(a)(2)) is amended—

4 (A) in subparagraph (A)(iii), by inserting

5 ‘‘or 807’’ after ‘‘205(j)(1)’’;

6 (B) in subparagraph (B)(ii)(I), by insert7 ing ‘‘, title VIII,’’ before ‘‘or this title’’;

8 (C) in subparagraph (B)(ii)(III), by insert9 ing ‘‘, 811,’’ before ‘‘or 1632’’;

10 (D) in subparagraph (B)(ii)(IV)—

11 (i) by inserting ‘‘whether the designa12 tion of such person as a representative

13 payee has been revoked pursuant to section

14 807(a),’’ before ‘‘and whether certifi15 cation’’; and

16 (ii) by inserting ‘‘, title VIII,’’ before

17 ‘‘or this title’’;

18 (E) in subparagraph (B)(iii)(II), by insert19 ing ‘‘the designation of such person as a rep20 resentative payee has been revoked pursuant to

21 section 807(a),’’ before ‘‘or certification’’; and

22 (F) in subparagraph (D)(ii)(II)(aa), by in23 serting ‘‘or 807’’ after ‘‘205(j)(4)’’.
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1 (9) ADMINISTRATIVE OFFSET.—Section

2 3716(c)(3)(C) of title 31, United States Code, is

3 amended—

4 (A) by striking ‘‘sections 205(b)(1)’’ and

5 inserting ‘‘sections 205(b)(1), 809(a)(1),’’; and

6 (B) by striking ‘‘either title II’’ and insert7 ing ‘‘title II, VIII,’’.

8 TITLE III—CHILD SUPPORT

9 SEC. 301. ELIMINATION OF ENHANCED MATCHING FOR

10 LABORATORY COSTS FOR PATERNITY ESTAB11 LISHMENT.

12 (a) IN GENERAL.—Section 455(a)(1) of the Social

13 Security Act (42 U.S.C. 655(a)(1)) is amended by striking

14 subparagraph (C) and redesignating subparagraph (D) as

15 subparagraph (C).

16 (b) EFFECTIVE DATE.—The amendment made by

17 this section shall be effective with respect to calendar

18 quarters beginning on or after October 1, 1999.

19 SEC. 302. ELIMINATION OF HOLD HARMLESS PROVISION

20 FOR STATE SHARE OF DISTRIBUTION OF COL21 LECTED CHILD SUPPORT.

22 (a) IN GENERAL.—Section 457 of the Social Security

23 Act (42 U.S.C. 657) is amended—

24 (1) in subsection (a), by striking ‘‘subsections

25 (e) and (f)’’ and inserting ‘‘subsections (d) and (e)’’;
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1 (2) by striking subsection (d);

2 (3) in subsection (e), by striking the 2nd sen3 tence; and

4 (4) by redesignating subsections (e) and (f) as

5 subsections (d) and (e), respectively.

6 (b) EFFECTIVE DATE.—The amendments made by

7 this section shall be effective with respect to calendar

8 quarters beginning on or after October 1, 1999.

9 TITLE IV—TECHNICAL

10 CORRECTIONS

11 SEC. 401. TECHNICAL CORRECTIONS RELATING TO AMEND12 MENTS MADE BY THE PERSONAL RESPONSI13 BILITY AND WORK OPPORTUNITY REC14 ONCILIATION ACT OF 1996.

15 (a) Section 402(a)(1)(B)(iv) of the Social Security

16 Act (42 U.S.C. 602(a)(1)(B)(iv)) is amended by striking

17 ‘‘Act’’ and inserting ‘‘section’’.

18 (b) Section 409(a)(7)(B)(i)(II) of the Social Security

19 Act (42 U.S.C. 609(a)(7)(B)(i)(II)) is amended by strik20 ing ‘‘part’’ and inserting ‘‘section’’.

21 (c) Section 413(g)(1) of the Social Security Act (42

22 U.S.C. 613(g)(1)) is amended by striking ‘‘Act’’ and in23 serting ‘‘section’’.
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1 (d) Section 413(i)(1) of the Social Security Act (42

2 U.S.C. 613(i)(1)) is amended by striking ‘‘part’’ and in3 serting ‘‘section’’.

4 (e) Section 416 of the Social Security Act (42 U.S.C.

5 616) is amended by striking ‘‘Opportunity Act’’ and in6 serting ‘‘Opportunity Reconciliation Act’’ each place such

7 term appears.

8 (f) Section 431(a)(6) of the Social Security Act (42

9 U.S.C. 629a(a)(6))) is amended—

10 (1) by inserting ‘‘, as in effect before August

11 22, 1986’’ after ‘‘482(i)(5)’’; and

12 (2) by inserting ‘‘, as so in effect’’ after

13 ‘‘482(i)(7)(A)’’.

14 (g) Sections 452(a)(7) and 466(c)(2)(A)(i) of the So15 cial Security Act (42 U.S.C. 652(a)(7) and

16 666(c)(2)(A)(i)) are each amended by striking ‘‘Social Se17 curity’’ and inserting ‘‘social security’’.

18 (h) Section 454 of the Social Security Act (42 U.S.C.

19 654) is amended—

20 (1) by striking ‘‘, or’’ at the end of each of

21 paragraphs (6)(E)(i) and (19)(B)(i) and inserting ‘‘;

22 or’’;

23 (2) in paragraph (9), by striking the comma at

24 the end of each of subparagraphs (A), (B), (C) and

25 inserting a semicolon; and
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1 (3) by striking ‘‘, and’’ at the end of each of

2 paragraphs (19)(A) and (24)(A) and inserting ‘‘;

3 and’’.

4 (i) Section 454(24)(B) of the Social Security Act (42

5 U.S.C. 654(24)(B)) is amended by striking ‘‘Opportunity

6 Act’’ and inserting ‘‘Opportunity Reconciliation Act’’.

7 (j) Section 344(b)(1)(A) of the Personal Responsi8 bility and Work Opportunity Reconciliation Act of 1996

9 (110 Stat. 2236) is amended to read as follows:

10 ‘‘(A) in paragraph (1), by striking sub11 paragraph (B) and inserting the following new

12 subparagraph:

13 ‘(B) equal to the percent specified in para14 graph (3) of the sums expended during such

15 quarter that are attributable to the planning,

16 design, development, installation or enhance17 ment of an automatic data processing and in18 formation retrieval system (including in such

19 sums the full cost of the hardware components

20 of such system); and’; and’’.

21 (k) Section 457(a)(2)(B)(i)(I) of the Social Security

22 Act (42 U.S.C. 657(a)(2)(B)(i)(I)) is amended by striking

23 ‘‘Act Reconciliation’’ and inserting ‘‘Reconciliation Act’’.

24 (l) Section 457 of the Social Security Act (42 U.S.C.

25 657) is amended by striking ‘‘Opportunity Act’’ each place
98

•S 1327 IS

1 it appears and inserting ‘‘Opportunity Reconciliation

2 Act’’.

3 (m) Section 466(a)(7) of the Social Security Act (42

4 U.S.C. 666(a)(7)) is amended by striking ‘‘1681a(f))’’ and

5 inserting ‘‘1681a(f)))’’.

6 (n) Section 466(b)(6)(A) of the Social Security Act

7 (42 U.S.C. 666(b)(6)(A)) is amended by striking ‘‘state’’

8 and inserting ‘‘State’’.

9 (o) Section 471(a)(8) of the Social Security Act (42

10 U.S.C. 671(a)(8)) is amended by striking ‘‘(including ac11 tivities under part F)’’.

12 (p) Section 1137(a)(3) of the Social Security Act

13 (42 U.S.C. 1320b–7(a)(3)) is amended

14 by striking ‘‘453A(a)(2)(B)(iii))’’ and inserting

15 ‘‘453A(a)(2)(B)(ii)))’’.

16 (q) The amendments made by this section shall take

17 effect as if included in the enactment of the Personal Re18 sponsibility and Work Opportunity Reconciliation Act of

19 1996.

Æ