I 

110TH CONGRESS 

1ST SESSION H. R. 2608 

To amend section 402 of the Personal Responsibility and Work Opportunity 

Reconciliation Act of 1996 to provide, in fiscal years 2008 through 

2010, extensions of supplemental security income for refugees, asylees, 

and certain other humanitarian immigrants, and to amend the Internal 

Revenue Code to collect unemployment compensation debts resulting from 

fraud. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 7, 2007 

Mr. MCDERMOTT (for himself, Mr. WELLER of Illinois, Mr. STARK, Mr. 

ENGLISH of Pennsylvania, Mr. LEVIN, Mr. NEAL of Massachusetts, Mr. 

MCNULTY, Mr. BECERRA, and Mr. BLUMENAUER) introduced the following bill; which was referred to the Committee on Ways and Means 

A BILL 

To amend section 402 of the Personal Responsibility and 

Work Opportunity Reconciliation Act of 1996 to provide, 

in fiscal years 2008 through 2010, extensions of supplemental security income for refugees, asylees, and certain 

other humanitarian immigrants, and to amend the Internal Revenue Code to collect unemployment compensation 

debts resulting from fraud. 

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

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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘SSI Extension for El3 derly and Disabled Refugees Act’’. 

4 SEC. 2. SSI EXTENSIONS FOR HUMANITARIAN IMMIGRANTS. 

5 Section 402(a)(2) of the Personal Responsibility and 

6 Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 

7 1612(a)(2)) is amended by adding at the end the fol8 lowing: 

9 ‘‘(M) SSI EXTENSIONS THROUGH FISCAL

10 YEAR 2010.— 

11 ‘‘(i) TWO-YEAR EXTENSION.— 

12 ‘‘(I) IN GENERAL.—Except as 

13 provided in clause (ii), with respect to 

14 eligibility for benefits for the specified 

15 Federal program described in para16 graph (3)(A), the 7-year period de17 scribed in subparagraph (A) shall be 

18 deemed to be a 9-year period during 

19 fiscal years 2008 through 2010. 

20 ‘‘(II) ALIENS WHOSE BENEFITS

21 CEASED IN PRIOR FISCAL YEARS.— 

22 ‘‘(aa) IN GENERAL.—Begin23 ning on the date of the enact24 ment of the SSI Extension for 

25 Elderly and Disabled Refugees 

26 Act, any qualified alien rendered 

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1 ineligible for the specified Fed2 eral program described in para3 graph (3)(A) during fiscal years 

4 prior to fiscal year 2008 solely by 

5 reason of the termination of the 

6 7-year period described in sub7 paragraph (A) shall be eligible 

8 for such program for an addi9 tional 2-year period in accord10 ance with this clause, if such 

11 alien meets all other eligibility 

12 factors under title XVI of the So13 cial Security Act. 

14 ‘‘(bb) PAYMENT OF BENE15 FITS.—Benefits paid under item 

16 (aa) shall be paid prospectively 

17 over the duration of the qualified 

18 alien’s renewed eligibility. 

19 ‘‘(ii) PENDING NATURALIZATION AP20 PLICATION.—With respect to eligibility for 

21 benefits for the specified program de22 scribed in paragraph (3) (A), subsection 

23 (a)(1) shall not apply during fiscal years 

24 2008 through 2010 to an alien described 

25 in one of clauses (i) through (v) of submstockstill on PROD1PC66 with BILLS

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1 paragraph (A), if the alien has submitted 

2 an application for naturalization that is 

3 pending before the Secretary of Homeland 

4 Security, and such submission is verified 

5 by the Commissioner of Social Security ei6 ther by receiving a receipt number from 

7 the alien for such submitted application or 

8 by receiving confirmation from the Sec9 retary of Homeland Security.’’. 

10 SEC. 3. COLLECTION OF UNEMPLOYMENT COMPENSATION 

11 DEBTS RESULTING FROM FRAUD. 

12 (a) IN GENERAL.—Section 6402 of the Internal Rev13 enue Code (relating to authority to make credits or re14 funds) is amended by redesignating subsections (f) 

15 through (k) as subsections (g) through (l), respectively, 

16 and by inserting after subsection (e) the following new 

17 subsection: 

18 ‘‘(f) COLLECTION OF UNEMPLOYMENT COMPENSA19 TION DEBTS RESULTING FROM FRAUD.— 

20 ‘‘(1) IN GENERAL.—Upon receiving notice from 

21 any State that a named person owes a covered un22 employment compensation debt to such State, the 

23 Secretary shall, under such conditions as may be 

24 prescribed by the Secretary— 

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1 ‘‘(A) reduce the amount of any overpay2 ment payable to such person by the amount of 

3 such covered unemployment compensation debt; 

4 ‘‘(B) pay the amount by which such over5 payment is reduced under subparagraph (A) to 

6 such State and notify such State of such per7 son’s name, taxpayer identification number, ad8 dress, and the amount collected; and 

9 ‘‘(C) notify the person making such over10 payment that the overpayment has been re11 duced by an amount necessary to satisfy a cov12 ered unemployment compensation debt. 

13 If an offset is made pursuant to a joint return, the 

14 notice under subparagraph (B) shall include the 

15 names, taxpayer identification numbers, and ad16 dresses of each person filing such return and the no17 tice under subparagraph (C) shall include informa18 tion related to the rights of a spouse of a person 

19 subject to such an offset. 

20 ‘‘(2) PRIORITIES FOR OFFSET.—Any overpay21 ment by a person shall be reduced pursuant to this 

22 subsection— 

23 ‘‘(A) after such overpayment is reduced 

24 pursuant to— 

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1 ‘‘(i) subsection (a) with respect to any 

2 liability for any internal revenue tax on the 

3 part of the person who made the overpay4 ment; 

5 ‘‘(ii) subsection (c) with respect to 

6 past-due support; and 

7 ‘‘(iii) subsection (d) with respect to 

8 any past-due, legally enforceable debt owed 

9 to a Federal agency; and 

10 ‘‘(B) before such overpayment is credited 

11 to the future liability for any Federal internal 

12 revenue tax of such person pursuant to sub13 section (b). 

14 If the Secretary receives notice from a State or 

15 States of more than one debt subject to paragraph 

16 (1) or subsection (e) that is owed by a person to 

17 such State or States, any overpayment by such per18 son shall be applied against such debts in the order 

19 in which such debts accrued. 

20 ‘‘(3) NOTICE; CONSIDERATION OF EVIDENCE.— 

21 No State may take action under this subsection until 

22 such State— 

23 ‘‘(A) notifies the person owing the covered 

24 unemployment compensation debt that the 

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1 State proposes to take action pursuant to this 

2 section; 

3 ‘‘(B) provides such person at least 60 days 

4 to present evidence that all or part of such li5 ability is not legally enforceable or due to fraud; 

6 ‘‘(C) considers any evidence presented by 

7 such person and determines that an amount of 

8 such debt is legally enforceable and due to 

9 fraud; and 

10 ‘‘(D) satisfies such other conditions as the 

11 Secretary may prescribe to ensure that the de12 termination made under subparagraph (C) is 

13 valid and that the State has made reasonable 

14 efforts to obtain payment of such covered un15 employment compensation debt. 

16 ‘‘(4) COVERED UNEMPLOYMENT COMPENSATION

17 DEBT.—For purposes of this subsection, the term 

18 ‘covered unemployment compensation debt’ means— 

19 ‘‘(A) a past-due debt for erroneous pay20 ment of unemployment compensation due to 

21 fraud which has become final under the law of 

22 a State certified by the Secretary of Labor pur23 suant to section 3304 and which remains uncol24 lected; 

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1 ‘‘(B) contributions due to the unemploy2 ment fund of a State for which the State has 

3 determined the person to be liable due to fraud; 

4 and 

5 ‘‘(C) any penalties and interest assessed on 

6 such debt. 

7 ‘‘(5) REGULATIONS.— 

8 ‘‘(A) IN GENERAL.—The Secretary may 

9 issue regulations prescribing the time and man10 ner in which States must submit notices of cov11 ered unemployment compensation debt and the 

12 necessary information that must be contained 

13 in or accompany such notices. The regulations 

14 may specify the minimum amount of debt to 

15 which the reduction procedure established by 

16 paragraph (1) may be applied. 

17 ‘‘(B) FEE PAYABLE TO SECRETARY.—The 

18 regulations may require States to pay a fee to 

19 the Secretary, which may be deducted from 

20 amounts collected, to reimburse the Secretary 

21 for the cost of applying such procedure. Any fee 

22 paid to the Secretary pursuant to the preceding 

23 sentence shall be used to reimburse appropria24 tions which bore all or part of the cost of apply25 ing such procedure. 

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1 ‘‘(C) SUBMISSION OF NOTICES THROUGH

2 SECRETARY OF LABOR.—The regulations may 

3 include a requirement that States submit no4 tices of covered unemployment compensation 

5 debt to the Secretary via the Secretary of Labor 

6 in accordance with procedures established by 

7 the Secretary of Labor. Such procedures may 

8 require States to pay a fee to the Secretary of 

9 Labor to reimburse the Secretary of Labor for 

10 the costs of applying this subsection. Any such 

11 fee shall be established in consultation with the 

12 Secretary of the Treasury. Any fee paid to the 

13 Secretary of Labor may be deducted from 

14 amounts collected and shall be used to reim15 burse the appropriation account which bore all 

16 or part of the cost of applying this subsection. 

17 ‘‘(6) ERRONEOUS PAYMENT TO STATE.—Any 

18 State receiving notice from the Secretary that an er19 roneous payment has been made to such State under 

20 paragraph (1) shall pay promptly to the Secretary, 

21 in accordance with such regulations as the Secretary 

22 may prescribe, an amount equal to the amount of 

23 such erroneous payment (without regard to whether 

24 any other amounts payable to such State under such 

25 paragraph have been paid to such State).’’. 

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1 (b) DISCLOSURE OF CERTAIN INFORMATION TO

2 STATES REQUESTING REFUND OFFSETS FOR LEGALLY

3 ENFORCEABLE STATE UNEMPLOYMENT COMPENSATION

4 DEBT RESULTING FROM FRAUD.— 

5 (1) GENERAL RULE.—Paragraph (3) of section 

6 6103(a) of such Code is amended by inserting 

7 ‘‘(10),’’ after ‘‘(6),’’. 

8 (2) DISCLOSURE TO DEPARTMENT OF LABOR

9 AND ITS AGENT.—Paragraph (10) of section 6103(l) 

10 of such Code is amended— 

11 (A) by striking ‘‘(c), (d), or (e)’’ each place 

12 it appears in the heading and text and inserting 

13 ‘‘(c), (d), (e), or (f)’’, 

14 (B) in subparagraph (A) by inserting ‘‘, to 

15 officers and employees of the Department of 

16 Labor and its agent for purposes of facilitating 

17 the exchange of data in connection with a re18 quest made under subsection (f)(5) of section 

19 6402,’’ after ‘‘section 6402’’, and 

20 (C) in subparagraph (B) by inserting ‘‘, 

21 and any agents of the Department of Labor,’’ 

22 after ‘‘agency’’ the first place it appears. 

23 (3) SAFEGUARDS.—Paragraph (4) of section 

24 6103(p) of such Code is amended— 

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1 (A) in the matter preceding subparagraph 

2 (A), by striking ‘‘(l)(16),’’ and inserting 

3 ‘‘(l)(10), (16),’’; 

4 (B) in subparagraph (F)(i), by striking 

5 ‘‘(l)(16),’’ and inserting ‘‘(l)(10), (16),’’; and 

6 (C) in the matter following subparagraph 

7 (F)(iii)— 

8 (i) in each of the first two places it 

9 appears, by striking ‘‘(l)(16),’’ and insert10 ing ‘‘(l)(10), (16),’’; 

11 (ii) by inserting ‘‘(10),’’ after ‘‘para12 graph (6)(A),’’; and 

13 (iii) in each of the last two places it 

14 appears, by striking ‘‘(l)(16)’’ and insert15 ing ‘‘(l)(10) or (16)’’. 

16 (c) EXPENDITURES FROM STATE FUND.—Section 

17 3304(a)(4) of such Code is amended— 

18 (1) in subparagraph (E), by striking ‘‘and’’ 

19 after the semicolon; 

20 (2) in subparagraph (F), by inserting ‘‘and’’ 

21 after the semicolon; and 

22 (3) by adding at the end the following new sub23 paragraph: 

24 ‘‘(G) with respect to amounts of covered 

25 unemployment compensation debt (as defined in 

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1 section 6402(f)(4)) collected under section 

2 6402(f)— 

3 ‘‘(i) amounts may be deducted to pay 

4 any fees authorized under such section; 

5 and 

6 ‘‘(ii) the penalties and interest de7 scribed in section 6402(f)(4)(B) may be 

8 transferred to the appropriate State fund 

9 into which the State would have deposited 

10 such amounts had the person owing the 

11 debt paid such amounts directly to the 

12 State;’’. 

13 (d) CONFORMING AMENDMENTS.— 

14 (1) Subsection (a) of section 6402 of such Code 

15 is amended by striking ‘‘(c), (d), and (e),’’ and in16 serting ‘‘(c), (d), (e), and (f)’’. 

17 (2) Paragraph (2) of section 6402(d) of such 

18 Code is amended by striking ‘‘and before such over19 payment is reduced pursuant to subsection (e)’’ and 

20 inserting ‘‘and before such overpayment is reduced 

21 pursuant to subsections (e) and (f)’’. 

22 (3) Paragraph (3) of section 6402(e) of such 

23 Code is amended in the last sentence by inserting 

24 ‘‘or subsection (f)’’ after ‘‘paragraph (1)’’. 

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1 (4) Subsection (g) of section 6402 of such 

2 Code, as redesignated by subsection (a), is amended 

3 by striking ‘‘(c), (d), or (e)’’ and inserting ‘‘(c), (d), 

4 (e), or (f)’’. 

5 (5) Subsection (i) of section 6402 of such Code, 

6 as redesignated by subsection (a), is amended by 

7 striking ‘‘subsection (c) or (e)’’ and inserting ‘‘sub8 section (c), (e), or (f)’’. 

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

10 this section shall apply to refunds payable under section 

11 6402 of the Internal Revenue Code of 1986 on or after 

12 the date of enactment of this Act. 

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