I

106TH CONGRESS

1ST SESSION H. R. 1802

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 HOUSE OF REPRESENTATIVES

MAY 13, 1999

Mrs. JOHNSON of Connecticut (for herself and Mr. CARDIN) introduced the

following bill; which was referred to the Committee on Ways and Means,

and in addition to the Committee on Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such

provisions as fall within the jurisdiction of the committee concerned

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.

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 Filipino Veterans of World War II

Sec. 251. Provision of reduced SSI benefit to certain individuals who provided

service to the Armed Forces of the United States in the Philippines during World War II after they move back to the Philippines.

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) States are required to make reasonable ef8 forts to find adoptive families for all children, in9 cluding older children, for whom reunification with

10 their biological family is not in the best interests of

11 the child. However, some older children will continue

12 to live in foster care. These children should be en13 rolled in an Independent Living program designed

14 and conducted by State and local government to help

15 prepare them for employment, postsecondary edu16 cation, and successful management of adult respon17 sibilities.

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

19 foster care system each year because they have

20 reached 18 years of age and are expected to support

21 themselves.
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1 (3) Congress has received extensive information

2 that adolescents leaving foster care have significant

3 difficulty making a successful transition to adult4 hood; this information shows that children aging out

5 of foster care show high rates of homelessness, non6 marital childbearing, poverty, and delinquent or

7 criminal behavior; they are also frequently the target

8 of crime and physical assaults.

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

10 with financial support from the Federal Government,

11 should offer an extensive program of education,

12 training, employment, and financial support for

13 young adults leaving foster care, with participation

14 in such program beginning several years before high

15 school graduation and continuing, as needed, until

16 the young adults emancipated from foster care es17 tablish independence or reach 21 years of age.

18 (b) IMPROVED INDEPENDENT LIVING PROGRAM.—

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

20 is amended to read as follows:

21 ‘‘SEC. 477. INDEPENDENT LIVING PROGRAM.

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

23 provide States with flexible funding that will enable pro24 grams to be designed and conducted—
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1 ‘‘(1) to identify children who are likely to re2 main in foster care until 18 years of age and to de3 sign programs that help these children make the

4 transition to self-sufficiency by providing services

5 such as assistance in obtaining a high school di6 ploma, career exploration, vocational training, job

7 placement and retention, training in daily living

8 skills, training in budgeting and financial manage9 ment skills, and substance abuse prevention;

10 ‘‘(2) to help children who are likely to remain

11 in foster care until 18 years of age receive the edu12 cation, training, and services necessary to obtain em13 ployment;

14 ‘‘(3) to help children who are likely to remain

15 in foster care until 18 years of age prepare for and

16 enter postsecondary training and education institu17 tions;

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

19 to children aging out of foster care, through mentors

20 and the promotion of interactions with dedicated

21 adults; and

22 ‘‘(5) to provide financial, housing, counseling,

23 employment, education, and other appropriate sup24 port and services to former foster care recipients be-
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1 tween 18 and 21 years of age to complement their

2 own efforts to achieve self-sufficiency.

3 ‘‘(b) APPLICATIONS.—

4 ‘‘(1) IN GENERAL.—A State may apply for

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

6 period of 5 consecutive fiscal years by submitting to

7 the Secretary, in writing, a plan that meets the re8 quirements of paragraph (2) and the certifications

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

10 ‘‘(2) STATE PLAN.—A plan meets the require11 ments of this paragraph if the plan specifies which

12 State agency or agencies will administer, supervise,

13 or oversee the programs carried out under the plan,

14 and describes how the State intends to do the fol15 lowing:

16 ‘‘(A) Design and deliver programs to

17 achieve the purposes of this section.

18 ‘‘(B) Ensure that all political subdivisions

19 in the State are served by the program, 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.
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1 ‘‘(D) Involve the public and private sectors

2 in helping adolescents in foster care achieve

3 independence.

4 ‘‘(E) Use objective criteria for determining

5 eligibility for benefits and services under the

6 programs, and for ensuring fair and equitable

7 treatment of benefit recipients.

8 ‘‘(F) Cooperate in national evaluations of

9 the effects of the programs in achieving the

10 purposes of this section.

11 ‘‘(3) CERTIFICATIONS.—The certifications re12 quired by this paragraph with respect to a plan are

13 the following:

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

15 officer of the State that the State will provide

16 assistance and services to children who have left

17 foster care but have not attained 21 years of

18 age.

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

20 officer of the State that not more than 30 per21 cent of the amounts paid to the State from its

22 allotment under subsection (c) for a fiscal year

23 will be expended for room or board for children

24 who have left foster care and have attained 18

25 years of age but not 21 years of age.
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1 ‘‘(C) A certification by the chief executive

2 officer of the State that none of the amounts

3 paid to the State from its allotment under sub4 section (c) will be expended for room or board

5 for any child who has not attained 18 years of

6 age.

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

8 officer of the State that the State has consulted

9 widely with public and private organizations in

10 developing the plan and that the State has

11 given all interested members of the public at

12 least 30 days to submit comments on the plan.

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

14 officer of the State that the State will make

15 every effort to coordinate the State programs

16 receiving funds provided from an allotment

17 made to the State under subsection (c) with

18 other Federal and State programs for youth,

19 especially transitional living youth projects

20 funded under part B of title III of the Juvenile

21 Justice and Delinquency Prevention Act of

22 1974.

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

24 officer of the State that each Indian tribe in the

25 State has been informed about the programs to
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1 be carried out under the plan; that each such

2 tribe has been given an opportunity to comment

3 on the plan before submission to the Secretary;

4 and that benefits and services under the pro5 grams will be made available to Indian children

6 in the State on the same basis as to other chil7 dren in the State.

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

9 officer of the State that the State has estab10 lished and will enforce standards and proce11 dures to prevent fraud and abuse in the pro12 grams carried out under the plan.

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

14 an application submitted by a State pursuant to

15 paragraph (1) for a period if—

16 ‘‘(A) the application is submitted on or be17 fore June 30 of the calendar year in which such

18 period begins;

19 ‘‘(B) the Secretary finds that the applica20 tion contains the material required by para21 graph (1); and

22 ‘‘(C) all children in the State who have left

23 foster care and have attained 18 years of age

24 but not 21 years of age are eligible for medical
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1 assistance under the State plan approved under

2 title XIX.

3 ‘‘(5) AUTHORITY TO IMPLEMENT CERTAIN

4 AMENDMENTS; NOTIFICATION.—A State with an ap5 plication approved under paragraph (4) may imple6 ment any amendment to the plan contained in the

7 application if the application, incorporating the

8 amendment, would be approvable under paragraph

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

10 such amendment, the State shall notify the Sec11 retary of the amendment.

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

13 available to the public any application submitted by

14 the State pursuant to paragraph (1), and a brief

15 summary of the plan contained in the application.

16 ‘‘(c) ALLOTMENTS TO STATES.—

17 ‘‘(1) IN GENERAL.—From the amount specified

18 in subsection (h) that remains after applying sub19 section (g)(2) for a fiscal year, the Secretary shall

20 allot to each State with an application approved

21 under subsection (b) for the fiscal year the amount

22 which bears the same ratio to such remaining

23 amount as the number of children in foster care

24 under a program of the State in the most recent fis25 cal year for which such information is available
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1 bears to the total number of children in foster care

2 in all States for such most recent fiscal year.

3 ‘‘(2) HOLD HARMLESS PROVISION.—The Sec4 retary shall ratably reduce the allotments made to

5 States pursuant to paragraph (1) for a fiscal year

6 to the extent necessary to ensure that the amount

7 allotted to each State under paragraph (1) and this

8 paragraph for the fiscal year is not less than the

9 amount payable to the State under this section (as

10 in effect before the enactment of the Foster Care

11 Independence Act of 1999) for fiscal year 1998.

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

13 Secretary shall use the formula provided in para14 graph (1) of this subsection to reallot among the

15 States with applications approved under subsection

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

17 under this subsection for the preceding year that is

18 not payable to the State for the preceding year.

19 ‘‘(d) USE OF FUNDS.—

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

21 amount is paid from its allotment under subsection

22 (c) may use the amount in any manner that is rea23 sonably calculated to accomplish the purposes of this

24 section.
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1 ‘‘(2) NO SUPPLANTATION OF OTHER FUNDS

2 AVAILABLE FOR SAME GENERAL PURPOSES.—The

3 amounts paid to a State from its allotment under

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

5 supplant any other funds which are available for the

6 same general purposes in the State.

7 ‘‘(e) PENALTIES.—

8 ‘‘(1) USE OF GRANT IN VIOLATION OF THIS

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

10 conducted under chapter 75 of title 31, United

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

12 receiving funds from an allotment made to a State

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

14 that is inconsistent with, or not disclosed in the

15 State application approved under subsection (b), the

16 Secretary shall assess a penalty against the State in

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

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

19 ‘‘(2) FAILURE TO COMPLY WITH DATA REPORT20 ING REQUIREMENT.—The Secretary shall assess a

21 penalty against a State that fails during a fiscal

22 year to comply with an information collection plan

23 implemented under subsection (f) in an amount

24 equal to not less than 1 percent and not more than
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1 5 percent of the amount allotted to the State for

2 the fiscal year.

3 ‘‘(3) PENALTIES BASED ON DEGREE OF NON4 COMPLIANCE.—The Secretary shall assess penalties

5 under this subsection based on the degree of non6 compliance.

7 ‘‘(f) DATA COLLECTION AND PERFORMANCE MEAS8 UREMENT.—

9 ‘‘(1) IN GENERAL.—The Secretary, in consulta10 tion with State and local public officials responsible

11 for administering independent living and other child

12 welfare programs, child welfare advocates, members

13 of Congress, youth service providers, and research14 ers, shall—

15 ‘‘(A) develop outcome measures (including

16 measures of educational attainment, employ17 ment, avoidance of dependency, homelessness,

18 nonmarital childbirth, and high-risk behaviors)

19 that can be used to assess the performance of

20 States in operating independent living pro21 grams;

22 ‘‘(B) identify data elements needed to

23 track—
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1 ‘‘(i) the number and characteristics of

2 children receiving services under this sec3 tion;

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

5 being provided; and

6 ‘‘(iii) State performance on the out7 come measures; and

8 ‘‘(C) develop and implement a plan to col9 lect the needed information beginning with the

10 2nd fiscal year beginning after the date of the

11 enactment of this section.

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

13 months after the date of the enactment of this sec14 tion, the Secretary shall submit to the Committee on

15 Ways and Means of the House of Representatives

16 and the Committee on Finance of the Senate a re17 port detailing the plans and timetable for collecting

18 from the States the information described in para19 graph (1).

20 ‘‘(g) EVALUATIONS.—

21 ‘‘(1) IN GENERAL.—The Secretary shall con22 duct evaluations of such State programs funded

23 under this section as the Secretary deems to be in24 novative or of potential national significance. The

25 evaluation of any such program shall include infor-
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1 mation on the effects of the program on education,

2 employment, and personal development. To the max3 imum extent practicable, the evaluations shall be

4 based on rigorous scientific standards including ran5 dom assignment to treatment and control groups.

6 The Secretary is encouraged to work directly with

7 State and local governments to design methods for

8 conducting the evaluations, directly or by grant, con9 tract, or cooperative agreement.

10 ‘‘(2) FUNDING OF EVALUATIONS.—The Sec11 retary shall reserve 1.5 percent of the amount speci12 fied in subsection (h) for a fiscal year to carry out,

13 during the fiscal year, evaluation, technical assist14 ance, performance measurement, and data collection

15 activities related to this section, directly or through

16 grants, contracts, or cooperative agreements with

17 appropriate entities.

18 ‘‘(h) LIMITATIONS ON AUTHORIZATION OF APPRO19 PRIATIONS.—To carry out this section, there are author20 ized to be appropriated to the Secretary $140,000,000 for

21 each fiscal year.’’.

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

23 such Act (42 U.S.C. 674(a)(4)) is amended to read as fol24 lows:

25 ‘‘(4) the lesser of—
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1 ‘‘(A) 80 percent of the amount (if any) by

2 which—

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

4 State during the fiscal year in which the

5 quarter occurs to carry out programs in

6 accordance with the State application ap7 proved under section 477(b) for the period

8 in which the quarter occurs (including any

9 amendment that meets the requirements of

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

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

12 assessed against the State under section

13 477(e) during the fiscal year in which the

14 quarter occurs; or

15 ‘‘(B) the amount allotted to the State

16 under section 477 for the fiscal year in which

17 the quarter occurs, reduced by the total of the

18 amounts payable to the State under this para19 graph for all prior quarters in the fiscal year.’’.

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

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

22 Health and Human Services shall issue such regulations

23 as may be necessary to carry out the amendments made

24 by this section.
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1 Subtitle B—Related Foster Care

2 Provision

3 SEC. 111. INCREASE IN AMOUNT OF ASSETS ALLOWABLE

4 FOR CHILDREN IN FOSTER CARE.

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

6 672(a)) is amended by adding at the end the following:

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

8 under a State plan approved under section 402 (as in ef9 fect on July 16, 1996), a child whose resources (deter10 mined pursuant to section 402(a)(7)(B), as so in effect)

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

12 be considered to be a child whose resources have a com13 bined value of not more than $1,000 (or such lower

14 amount as the State may determine for purposes of such

15 section 402(a)(7)(B)).’’.

16 Subtitle C—Medicaid Amendments

17 SEC. 121. STATE OPTION OF MEDICAID COVERAGE FOR

18 ADOLESCENTS LEAVING FOSTER CARE.

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

20 Act is amended—

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

22 1396a(a)(10)(A)(ii))—

23 (A) by striking ‘‘or’’ at the end of sub24 clause (XIII);
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1 (B) by adding ‘‘or’’ at the end of subclause

2 (XIV); and

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

4 subclause:

5 ‘‘(XV) who are independent fos6 ter care adolescents (as defined in

7 (section 1905(v)(1)), or who are with8 in any reasonable categories of such

9 adolescents specified by the State;’’;

10 and

11 (2) by adding at the end of section 1905 (42

12 U.S.C. 1396d) the following new subsection:

13 ‘‘(v)(1) For purposes of this title, the term ‘inde14 pendent foster care adolescent’ means an individual—

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

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

17 was in foster care under the responsibility of a

18 State; and

19 ‘‘(C) whose assets, resources, and income do

20 not exceed such levels (if any) as the State may es21 tablish consistent with paragraph (2).

22 ‘‘(2) The levels established by a State under para23 graph (1)(C) may not be less than the corresponding levels

24 applied by the State under section 1931(b).
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1 ‘‘(3) A State may limit the eligibility of independent

2 foster care adolescents under section

3 1902(a)(10)(A)(ii)(XV) to those individuals with respect

4 to whom foster care maintenance payments or inde5 pendent living services were furnished under a program

6 funded under part E of title IV before the date the individ7 uals attained 18 years of age.’’.

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

9 subsection (a) apply to medical assistance for items and

10 services furnished on or after October 1, 1999.

11 TITLE II—SSI FRAUD

12 PREVENTION

13 Subtitle A—Fraud Prevention and

14 Related Provisions

15 SEC. 201. LIABILITY OF REPRESENTATIVE PAYEES FOR

16 OVERPAYMENTS TO DECEASED RECIPIENTS.

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

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

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

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

21 representative payee on behalf of an individual after the

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

23 for the repayment of the overpayment, and the Commis24 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
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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:

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
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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.
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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:

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

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

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

21 (2) AMENDMENT TO TITLE XVI.—Section

22 1631(b)(1)(B)(i) of such Act (42 U.S.C.

23 1383(b)(1)(B)(i)) is amended by inserting ‘‘unless

24 (I) section 1611(e)(1) prohibits payment to the per25 son of a benefit under this title for the month by

26 reason of confinement of a type described in clause
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1 (i) or (ii) of section 202(x)(1)(A), or (II) section

2 1611(e)(5) prohibits payment to the person of a

3 benefit under this title for the month,’’ after ‘‘ad4 ministration of this title’’.

5 (b) 10-YEAR PERIOD OF INELIGIBILITY FOR PER6 SONS FAILING TO NOTIFY COMMISSIONER OF OVERPAY7 MENTS IN MONTHS IN WHICH BENEFICIARY IS A PRIS8 ONER OR A FUGITIVE OR FAILING TO COMPLY WITH RE9 PAYMENT SCHEDULE FOR SUCH OVERPAYMENTS.—

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

11 of such Act (42 U.S.C. 402(x)) is amended by add12 ing at the end the following:

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

14 monthly insurance benefits under this section based on the

15 person’s disability or to disability insurance benefits under

16 section 223 otherwise payable during the 10-year period

17 that begins on the date the person—

18 ‘‘(i) knowingly fails to timely notify the Com19 missioner of Social Security, in connection with any

20 application for benefits under this title, of any prior

21 receipt by such person of any benefit under this title

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

23 not payable under the preceding provisions of this

24 subsection, or
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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:

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

17 individual or eligible spouse for purposes of benefits under

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

19 that begins on the date the person—

20 ‘‘(I) knowingly fails to timely notify the Com21 missioner of Social Security, in an application for

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

23 person of a benefit under this title or title II in a

24 month in which payment to the person of a benefit

25 under this title was prohibited by—
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1 ‘‘(aa) the preceding provisions of this para2 graph by reason of confinement of a type de3 scribed in clause (i) or (ii) of section

4 202(x)(1)(A); or

5 ‘‘(bb) section 1611(e)(4); or

6 ‘‘(II) knowingly fails to comply with any sched7 ule imposed by the Commissioner which is for repay8 ment of overpayments comprised of payments de9 scribed in clause (i) of this subparagraph and which

10 is in compliance with section 1631(b).

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

12 addition to any other relevant factors, take into account

13 any mental or linguistic limitations of a person (including

14 any lack of facility with the English language) in deter15 mining whether the person has knowingly failed to comply

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

17 (c) CONTINUED COLLECTION EFFORTS AGAINST

18 PRISONERS.—

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

20 of such Act (42 U.S.C. 404(b)), as amended by sub21 section (a)(1) of this section, is amended further by

22 adding at the end the following new paragraph:

23 ‘‘(3) The Commissioner shall not refrain from recov24 ering overpayments from resources currently available to

25 any overpaid person or to such person’s estate solely be-
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1 cause such individual is confined as described in clause

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

3 (2) AMENDMENT TO TITLE XVI.—Section

4 1631(b)(1)(A) of such Act (42 U.S.C.

5 1383(b)(1)(A)) is amended by adding after and

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

7 ‘‘The Commissioner shall not refrain from recovering over8 payments from resources currently available to any indi9 vidual solely because the individual is confined as de10 scribed in clause (i) or (ii) of section 202(x)(1)(A).’’.

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

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

13 benefits payable for, months beginning 24 months or more

14 after the date of the enactment of this Act.

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

16 THE SSI PROGRAM.

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

18 Social Security Act (42 U.S.C. 1382b) is amended by add19 ing at the end the following:

20 ‘‘Trusts

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

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

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

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

25 shall be considered to have established a trust if any assets
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1 of the individual (or of the individual’s spouse) are trans2 ferred to the trust other than by will.

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

4 transferred the assets of an individual (or of the individ5 ual’s spouse) and the assets of any other person, this sub6 section shall apply to the portion of the trust attributable

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

8 spouse).

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

10 regard to—

11 ‘‘(i) the purposes for which the trust is estab12 lished;

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

14 discretion under the trust;

15 ‘‘(iii) any restrictions on when or whether dis16 tributions may be made from the trust; or

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

18 from the trust.

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

20 by an individual, the corpus of the trust shall be consid21 ered a resource available to the individual.

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

23 by an individual, if there are any circumstances under

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

25 the benefit of the individual or the individual’s spouse, the
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1 portion of the corpus from which payment to or for the

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

3 be made shall be considered a resource available to the

4 individual.

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

6 the application of this subsection with respect to an indi7 vidual if the Commissioner determines that such applica8 tion would work an undue hardship (as determined on the

9 basis of criteria established by the Commissioner) on the

10 individual.

11 ‘‘(5) This subsection shall not apply to a trust de12 scribed in subparagraph (A) or (C) of section 1917(d)(4).

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

14 ‘‘(A) the term ‘trust’ includes any legal instru15 ment or device that is similar to a trust;

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

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

18 trust, including accumulated earnings and any other

19 addition to the trust after its establishment (except

20 that such term does not include any such earnings

21 or addition in the month in which the earnings or

22 addition is credited or otherwise transferred to the

23 trust); and
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1 ‘‘(C) the term ‘asset’ includes any income or re2 source of the individual or of the individual’s spouse,

3 including—

4 ‘‘(i) any income excluded by section

5 1612(b);

6 ‘‘(ii) any resource otherwise excluded by

7 this section; and

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

9 which the individual or the individual’s spouse

10 is entitled but does not receive or have access

11 to because of action by—

12 ‘‘(I) the individual or spouse;

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

14 court) with legal authority to act in place

15 of, or on behalf of, the individual or

16 spouse; or

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

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

19 request of, the individual or spouse.’’.

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

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

22 (1) by striking ‘‘and’’ at the end of subpara23 graph (E);

24 (2) by striking the period at the end of sub25 paragraph (F) and inserting ‘‘; and’’; and
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1 (3) by adding at the end the following:

2 ‘‘(G) any earnings of, and additions to, the cor3 pus of a trust established by an individual (within

4 the meaning of section 1613(e)), of which the indi5 vidual is a beneficiary, to which section 1613(e) ap6 plies, and, in the case of an irrevocable trust, with

7 respect to which circumstances exist under which a

8 payment from the earnings or additions could be

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

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

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

12 apply to trusts established on or after such date.

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

14 MARKET VALUE UNDER THE SSI PROGRAM.

15 (a) IN GENERAL.—Section 1613(c) of the Social Se16 curity Act (42 U.S.C. 1382b(c)) is amended—

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

18 Medicaid Policy Restricting Eligibility of Institu19 tionalized Individuals for Benefits Based on’’;

20 (2) in paragraph (1)—

21 (A) in subparagraph (A)—

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

23 after ‘‘provisions of’’;
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1 (ii) by striking ‘‘title XIX’’ the first

2 place it appears and inserting ‘‘this title

3 and title XIX, respectively,’’;

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

5 and inserting ‘‘clause (ii)’’;

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

7 inserting ‘‘subparagraph (B)’’;

8 (B) in subparagraph (B)—

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

10 and

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

12 all that follows and inserting ‘‘paragraph

13 (1) or section 1917(c).’’; and

14 (C) by redesignating subparagraphs (A)

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

16 (3) in paragraph (2)—

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

18 and

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

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

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

22 and

23 (5) by inserting before paragraph (2) (as so re24 designated by paragraph (4) of this subsection) the

25 following:
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1 ‘‘(c)(1)(A)(i) If an individual or the spouse of an indi2 vidual disposes of resources for less than fair market value

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

4 the individual is ineligible for benefits under this title for

5 months during the period beginning on the date described

6 in clause (iii) and equal to the number of months cal7 culated as provided in clause (iv).

8 ‘‘(ii)(I) The look-back date described in this sub9 clause is a date that is 36 months before the date de10 scribed in subclause (II).

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

12 on which the individual applies for benefits under this title

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

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

15 market value.

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

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

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

19 not occur in any other period of ineligibility under this

20 paragraph.

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

22 clause shall be equal to—

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

24 of all resources so disposed of by the individual (or
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1 the spouse of the individual) on or after the look2 back date described in clause (ii)(I); divided by

3 ‘‘(II) the amount of the maximum monthly ben4 efit payable under section 1611(b), plus the amount

5 (if any) of the maximum State supplementary pay6 ment corresponding to the State’s payment level ap7 plicable to the individual’s living arrangement and

8 eligibility category that would otherwise be payable

9 to the individual by the Commissioner pursuant to

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

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

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

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

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

15 ‘‘(B)(i) Notwithstanding subparagraph (A), this sub16 section shall not apply to a transfer of a resource to a

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

18 is considered a resource available to the individual pursu19 ant to subsection (e)(3) (or would be so considered but

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

21 ‘‘(ii) In the case of a trust established by an indi22 vidual or an individual’s spouse (within the meaning of

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

24 that is considered a resource available to the individual

25 pursuant to subsection (e)(3) (or would be so considered
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1 but for the application of subsection (e)(4)) or the residue

2 of the portion on the termination of the trust—

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

4 for the benefit of the individual; or

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

6 be made to the individual,

7 then, for purposes of this subsection, the payment de8 scribed in clause (I) or the foreclosure of payment de9 scribed in clause (II) shall be considered a transfer of re10 sources by the individual or the individual’s spouse as of

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

12 be.

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

14 under this title by reason of the application of this para15 graph to a disposal of resources by the individual or the

16 spouse of the individual, to the extent that—

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

18 home was transferred to—

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

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

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

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

23 an equity interest in such home and who was

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

25 at least 1 year immediately before the date the
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1 transferor becomes an institutionalized indi2 vidual; or

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

4 (other than a child described in subclause (II))

5 who was residing in the transferor’s home for

6 a period of at least 2 years immediately before

7 the date the transferor becomes an institu8 tionalized individual, and who provided care to

9 the transferor which permitted the transferor to

10 reside at home rather than in such an institu11 tion or facility;

12 ‘‘(ii) the resources—

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

14 spouse or to another for the sole benefit of the

15 transferor’s spouse;

16 ‘‘(II) were transferred from the trans17 feror’s spouse to another for the sole benefit of

18 the transferor’s spouse;

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

20 (including a trust described in section

21 1917(d)(4)) established solely for the benefit of,

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

23 or

24 ‘‘(IV) were transferred to a trust (includ25 ing a trust described in section 1917(d)(4)) es-
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1 tablished solely for the benefit of an individual

2 who has not attained 65 years of age and who

3 is disabled;

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

5 Commissioner of Social Security (in accordance with

6 regulations promulgated by the Commissioner)

7 that—

8 ‘‘(I) the individual who disposed of the re9 sources intended to dispose of the resources ei10 ther at fair market value, or for other valuable

11 consideration;

12 ‘‘(II) the resources were transferred exclu13 sively for a purpose other than to qualify for

14 benefits under this title; or

15 ‘‘(III) all resources transferred for less

16 than fair market value have been returned to

17 the transferor; or

18 ‘‘(iv) the Commissioner determines, under pro19 cedures established by the Commissioner, that the

20 denial of eligibility would work an undue hardship as

21 determined on the basis of criteria established by the

22 Commissioner.

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

24 a resource held by an individual in common with another

25 person or persons in a joint tenancy, tenancy in common,
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1 or similar arrangement, the resource (or the affected por2 tion of such resource) shall be considered to be disposed

3 of by the individual when any action is taken, either by

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

5 eliminates the individual’s ownership or control of such re6 source.

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

8 individual that results in a period of ineligibility for the

9 individual under this subsection, the Commissioner shall

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

11 the individual and the individual’s spouse if the spouse be12 comes eligible for benefits under this title.

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

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

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

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

17 of Public Law 93–66;

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

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

20 and

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

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

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

24 this section shall be effective with respect to disposals

25 made on or after the date of enactment of this Act.
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1 SEC. 208. ADMINISTRATIVE PROCEDURE FOR IMPOSING

2 PENALTIES FOR FALSE OR MISLEADING

3 STATEMENTS.

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

5 Security Act (42 U.S.C. 1301 et seq.) is amended by in6 serting after section 1129 the following:

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

8 PENALTIES FOR FALSE OR MISLEADING

9 STATEMENTS.

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

11 causes to be made, a statement or representation of a ma12 terial fact for use in determining any initial or continuing

13 right to or the amount of—

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

15 or

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

17 that the person knows or should know is false or mis18 leading or knows or should know omits a material fact

19 or makes such a statement with knowing disregard for the

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

21 that may be prescribed by law, a penalty described in sub22 section (b) to be imposed by the Commissioner of Social

23 Security.

24 ‘‘(b) PENALTY.—The penalty described in this sub25 section is—
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1 ‘‘(1) nonpayment of benefits under title II that

2 would otherwise be payable to the person; and

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

4 XVI,

5 for each month that begins during the applicable period

6 described in subsection (c).

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

8 applicable period, with respect to a determination by the

9 Commissioner under subsection (a) that a person has en10 gaged in conduct described in subsection (a), shall be—

11 ‘‘(1) 6 consecutive months, in the case of a first

12 such determination with respect to the person;

13 ‘‘(2) 12 consecutive months, in the case of a

14 second such determination with respect to the per15 son; and

16 ‘‘(3) 24 consecutive months, in the case of a

17 third or subsequent such determination with respect

18 to the person.

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

20 subject to a period of nonpayment of benefits under title

21 II or ineligibility for title XVI benefits by reason of this

22 section nevertheless shall be considered to be eligible for

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

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

25 imposition of the penalty, for purposes of—
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1 ‘‘(1) determination of the eligibility of the per2 son for benefits under titles XVIII and XIX; and

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

4 of benefits payable under title II or XVI to another

5 person.

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

7 under title XVI’ includes State supplementary payments

8 made by the Commissioner pursuant to an agreement

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

10 Public Law 93–66.

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

12 Security shall consult with the Inspector General of the

13 Social Security Administration regarding initiating actions

14 under this section.’’.

15 (b) CONFORMING AMENDMENT PRECLUDING DE16 LAYED RETIREMENT CREDIT FOR ANY MONTH TO WHICH

17 A NONPAYMENT OF BENEFITS PENALTY APPLIES.—Sec18 tion 202(w)(2)(B) of such Act (42 U.S.C. 402(w)(2)(B))

19 is amended—

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

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

22 (ii) and inserting ‘‘, and’’; and

23 (3) by adding at the end the following:

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

25 penalty imposed under section 1129A.’’.
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1 (c) ELIMINATION OF REDUNDANT PROVISION.—Sec2 tion 1611(e) of such Act (42 U.S.C. 1382(e)) is

3 amended—

4 (1) by striking paragraph (4);

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

6 and inserting ‘‘(4)’’; and

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

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

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

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

11 Security shall develop regulations that prescribe the ad12 ministrative process for making determinations under sec13 tion 1129A of the Social Security Act (including when the

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

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

16 discretion as to whether the penalty should be imposed

17 in particular cases.

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

19 this section shall apply to statements and representations

20 made on or after the date of the enactment of this Act.
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1 SEC. 209. EXCLUSION OF REPRESENTATIVES AND HEALTH

2 CARE PROVIDERS CONVICTED OF VIOLA3 TIONS FROM PARTICIPATION IN SOCIAL SE4 CURITY PROGRAMS.

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

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

7 adding at the end the following:

8 ‘‘EXCLUSION OF REPRESENTATIVES AND HEALTH CARE

9 PROVIDERS CONVICTED OF VIOLATIONS FROM PAR10 TICIPATION IN SOCIAL SECURITY PROGRAMS

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

12 of Social Security shall exclude from participation in the

13 social security programs any representative or health care

14 provider—

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

16 208 or 1632 of this Act,

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

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

19 application for or continuing entitlement to, or

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

21 initial application for or continuing eligibility for, or

22 amount of, benefits under title XVI of this Act, or

23 ‘‘(3) who the Commissioner determines has

24 committed an offense described in section

25 1129(a)(1) of this Act.
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1 ‘‘(b) NOTICE, EFFECTIVE DATE, AND PERIOD OF

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

3 effective at such time, for such period, and upon such rea4 sonable notice to the public and to the individual excluded

5 as may be specified in regulations consistent with para6 graph (2).

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

8 to services furnished to any individual on or after the ef9 fective date of the exclusion. Nothing in this section may

10 be construed to preclude, in determining disability under

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

12 derived from services provided by a health care provider

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

14 provider under this section.

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

16 of exclusion under paragraph (1), the period of the exclu17 sion.

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

19 exclusion under subsection (a), the minimum period of ex20 clusion shall be five years, except that the Commissioner

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

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

23 Commissioner’s decision whether to waive the exclusion

24 shall not be reviewable.
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1 ‘‘(C) In the case of an exclusion of an individual

2 under subsection (a) based on a conviction or a determina3 tion described in subsection (a)(3) occurring on or after

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

5 has (before, on, or after such date of enactment) been con6 victed, or if such a determination has been made with re7 spect to the individual—

8 ‘‘(i) on one previous occasion of one or more of9 fenses for which an exclusion may be effected under

10 such subsection, the period of the exclusion shall be

11 not less than 10 years, or

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

13 more offenses for which an exclusion may be effected

14 under such subsection, the period of the exclusion

15 shall be permanent.

16 ‘‘(c) NOTICE TO STATE AGENCIES.—The Commis17 sioner shall promptly notify each appropriate State agency

18 employed for the purpose of making disability determina19 tions under section 221 or 1633(a)—

20 ‘‘(1) of the fact and circumstances of each ex21 clusion effected against an individual under this sec22 tion, and

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

24 (b)(3)) for which the State agency is directed to ex25 clude the individual from participation in the activi-
46

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1 ties of the State agency in the course of its employ2 ment.

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

4 Commissioner shall—

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

6 local agency or authority having responsibility for

7 the licensing or certification of an individual ex8 cluded from participation under this section of the

9 fact and circumstances of the exclusion,

10 ‘‘(2) request that appropriate investigations be

11 made and sanctions invoked in accordance with ap12 plicable State law and policy, and

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

14 authority keep the Commissioner and the Inspector

15 General of the Social Security Administration fully

16 and currently informed with respect to any actions

17 taken in response to the request.

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

19 (1) Any individual who is excluded (or directed to be ex20 cluded) from participation under this section is entitled

21 to reasonable notice and opportunity for a hearing thereon

22 by the Commissioner to the same extent as is provided

23 in section 205(b), and to judicial review of the Commis24 sioner’s final decision after such hearing as is provided

25 in section 205(g).
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1 ‘‘(2) The provisions of section 205(h) shall apply with

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

3 with respect to title II.

4 ‘‘(f) APPLICATION FOR TERMINATION OF EXCLU5 SION.—(1) An individual excluded from participation

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

7 manner specified by the Commissioner in regulations and

8 at the end of the minimum period of exclusion provided

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

10 Commissioner may provide, for termination of the exclu11 sion effected under this section.

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

13 if the Commissioner determines, on the basis of the con14 duct of the applicant which occurred after the date of the

15 notice of exclusion or which was unknown to the Commis16 sioner at the time of the exclusion, that—

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

18 a continuation of the exclusion, and

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

20 types of actions which formed the basis for the origi21 nal exclusion have not recurred and will not recur.

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

23 State agency employed for the purpose of making dis24 ability determinations under section 221 or 1633(a) of the
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1 fact and circumstances of each termination of exclusion

2 made under this subsection.

3 ‘‘(g) AVAILABILITY OF RECORDS OF EXCLUDED

4 REPRESENTATIVES AND HEALTH CARE PROVIDERS.—

5 Nothing in this section shall be construed to have the ef6 fect of limiting access by any applicant or beneficiary

7 under title II or XVI, any State agency acting under sec8 tion 221 or 1633(a), or the Commissioner to records main9 tained by any representative or health care provider in

10 connection with services provided to the applicant or bene11 ficiary prior to the exclusion of such representative or

12 health care provider under this section.

13 ‘‘(h) REPORTING REQUIREMENT.—Any representa14 tive or health care provider participating in, or seeking

15 to participate in, a social security program shall inform

16 the Commissioner, in such form and manner as the Com17 missioner shall prescribe by regulation, whether such rep18 resentative or health care provider has been convicted of

19 a violation described in subsection (a).

20 ‘‘(i) DELEGATION OF AUTHORITY.—The Commis21 sioner may delegate authority granted by this section to

22 the Inspector General.

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

24 ‘‘(1) EXCLUDE.—The term ‘exclude’ from par25 ticipation means—
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1 ‘‘(A) in connection with a representative,

2 to prohibit from engaging in representation of

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

4 representative payee under section 205(j) or

5 1631(a)(2)(A)(ii), or otherwise as a representa6 tive, in any hearing or other proceeding relating

7 to entitlement to benefits, and

8 ‘‘(B) in connection with a health care pro9 vider, to prohibit from providing items or serv10 ices to an applicant for, or recipient of, benefits

11 for the purpose of assisting such applicant or

12 recipient in demonstrating disability.

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

14 ‘social security programs’ means the program pro15 viding for monthly insurance benefits under title II,

16 and the program providing for monthly supplemental

17 security income benefits to individuals under title

18 XVI (including State supplementary payments made

19 by the Commissioner pursuant to an agreement

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

21 of Public Law 93–66).

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

23 to have been ‘convicted’ of a violation—

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

25 been entered against the individual by a Fed-
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1 eral, State, or local court, except if the judg2 ment of conviction has been set aside or ex3 punged;

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

5 guilt against the individual by a Federal, State,

6 or local court;

7 ‘‘(C) when a plea of guilty or nolo

8 contendere by the individual has been accepted

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

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

11 participation in a first offender, deferred adju12 dication, or other arrangement or program

13 where judgment of conviction has been with14 held.’’.

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

16 this section shall apply with respect to convictions of viola17 tions described in paragraphs (1) and (2) of section

18 1148(a) of the Social Security Act and determinations de19 scribed in paragraph (3) of such section occurring on or

20 after the date of the enactment of this Act.

21 SEC. 210. STATE DATA EXCHANGES.

22 Whenever the Commissioner of Social Security re23 quests information from a State for the purpose of

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

25 correct amount of such benefits) under title II or XVI of
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1 the Social Security Act, the standards of the Commis2 sioner promulgated pursuant to section 1106 of such Act

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

4 disclosure of information are deemed to meet any stand5 ards of the State that would otherwise apply to the disclo6 sure of information by the State to the Commissioner.

7 SEC. 211. STUDY ON POSSIBLE MEASURES TO IMPROVE

8 FRAUD PREVENTION AND ADMINISTRATIVE

9 PROCESSING.

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

11 the enactment of this Act, the Commissioner of Social Se12 curity, in consultation with the Inspector General of the

13 Social Security Administration and the Attorney General,

14 shall conduct a study of possible measures to improve—

15 (1) prevention of fraud on the part of individ16 uals entitled to disability benefits under section 223

17 of the Social Security Act or benefits under section

18 202 of such Act based on the beneficiary’s disability,

19 individuals eligible for supplemental security income

20 benefits under title XVI of such Act, and applicants

21 for any such benefits; and

22 (2) timely processing of reported income

23 changes by individuals receiving such benefits.

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

25 of the enactment of this Act, the Commissioner shall sub-
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1 mit to the Committee on Ways and Means of the House

2 of Representatives and the Committee on Finance of the

3 Senate a written report that contains the results of the

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

5 shall contain such recommendations for legislative and ad6 ministrative changes as the Commissioner considers ap7 propriate.

8 SEC. 212. ANNUAL REPORT ON AMOUNTS NECESSARY TO

9 COMBAT FRAUD.

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

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

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

13 (2) by adding at the end the following new sub14 paragraph:

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

16 budget prepared pursuant to subparagraph (A) an

17 itemization of the amount of funds required by the Social

18 Security Administration for the fiscal year covered by the

19 budget to support efforts to combat fraud committed by

20 applicants and beneficiaries.’’.

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

22 this section shall apply with respect to annual budgets pre23 pared for fiscal years after fiscal year 1999.
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1 SEC. 213. COMPUTER MATCHES WITH MEDICARE AND MED2 ICAID INSTITUTIONALIZATION DATA.

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

4 Security Act (42 U.S.C. 1382(e)(1)), as amended by sec5 tion 205(b)(2) of this Act, is further amended by adding

6 at the end the following:

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

8 the Commissioner of Social Security shall conduct periodic

9 computer matches with data maintained by the Secretary

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

11 The Secretary shall furnish to the Commissioner, in such

12 form and manner and under such terms as the Commis13 sioner and the Secretary shall mutually agree, such infor14 mation as the Commissioner may request for this purpose.

15 Information obtained pursuant to such a match may be

16 substituted for the physician’s certification otherwise re17 quired under subparagraph (G)(i).’’.

18 (b) CONFORMING AMENDMENT.—Section

19 1611(e)(1)(G) of such Act (42 U.S.C. 1382(e)(1)(G)) is

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

21 ‘‘subparagraph (H) or (K)’’.

22 SEC. 214. ACCESS TO INFORMATION HELD BY FINANCIAL

23 INSTITUTIONS.

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

25 U.S.C. 1383(e)(1)(B)) is amended—
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1 (1) by striking ‘‘(B) The’’ and inserting ‘‘(B)(i)

2 The’’; and

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

4 clause:

5 ‘‘(ii)(I) The Commissioner of Social Security may re6 quire each applicant for, or recipient of, benefits under

7 this title to provide authorization by the applicant or re8 cipient (or by any other person whose income or resources

9 are material to the determination of the eligibility of the

10 applicant or recipient for such benefits) for the Commis11 sioner to obtain (subject to the cost reimbursement re12 quirements of section 1115(a) of the Right to Financial

13 Privacy Act) from any financial institution (within the

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

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

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

17 or recipient (or any such other person) whenever the Com18 missioner determines the record is needed in connection

19 with a determination with respect to such eligibility or the

20 amount of such benefits.

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

22 Right to Financial Privacy Act, an authorization provided

23 by an applicant or recipient (or any other person whose

24 income or resources are material to the determination of

25 the eligibility of the applicant or recipient) pursuant to
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1 subclause (I) of this clause shall remain effective until the

2 earliest of—

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

4 on the applicant’s application for eligibility for bene5 fits under this title;

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

7 for benefits under this title; or

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

9 recipient (or such other person referred to in sub10 clause (I)) of the authorization, in a written notifica11 tion to the Commissioner.

12 ‘‘(III)(aa) An authorization obtained by the Commis13 sioner of Social Security pursuant to this clause shall be

14 considered to meet the requirements of the Right to Fi15 nancial Privacy Act for purposes of section 1103(a) of

16 such Act, and need not be furnished to the financial insti17 tution, notwithstanding section 1104(a) of such Act.

18 ‘‘(bb) The certification requirements of section

19 1103(b) of the Right to Financial Privacy Act shall not

20 apply to requests by the Commissioner of Social Security

21 pursuant to an authorization provided under this clause.

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

23 authorization provided under this clause is deemed to meet

24 the requirements of section 1104(a)(3) of the Right to Fi-
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1 nancial Privacy Act and the flush language of section

2 1102 of such Act.

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

4 provides authorization pursuant to this clause of the dura5 tion and scope of the authorization.

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

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

8 subclause (I)) refuses to provide, or revokes, any author9 ization made by the applicant or recipient for the Commis10 sioner of Social Security to obtain from any financial insti11 tution any financial record, the Commissioner may, on

12 that basis, determine that the applicant or recipient is in13 eligible for benefits under this title.’’.

14 Subtitle B—Benefits for Filipino

15 Veterans of World War II

16 SEC. 251. PROVISION OF REDUCED SSI BENEFIT TO CER17 TAIN INDIVIDUALS WHO PROVIDED SERVICE

18 TO THE ARMED FORCES OF THE UNITED

19 STATES IN THE PHILIPPINES DURING WORLD

20 WAR II AFTER THEY MOVE BACK TO THE

21 PHILIPPINES.

22 (a) IN GENERAL.—Notwithstanding sections

23 1611(f)(1) and 1614(a)(1)(B)(i) of the Social Security

24 Act and sections 401 and 402 of the Personal Responsi25 bility and Work Opportunity Reconciliation Act of 1996,
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1 the eligibility of a qualified individual for benefits under

2 the supplemental security income program under title XVI

3 of the Social Security Act shall not terminate by reason

4 of a change in the place of residence of the individual to

5 the Philippines.

6 (b) BENEFIT AMOUNT.—Notwithstanding sub7 sections (a) and (b) of section 1611 of the Social Security

8 Act, the benefit payable under the supplemental security

9 income program to a qualified individual for any month

10 throughout which the individual resides in the Philippines

11 shall be in an amount equal to 75 percent of the Federal

12 benefit rate under title XVI of such Act for the month,

13 reduced (after disregard of the amount specified in section

14 1612(b)(2)(A) of such Act) by the amount of the qualified

15 individual’s benefit income for the month.

16 (c) DEFINITIONS.—In this section:

17 (1) QUALIFIED INDIVIDUAL.—The term ‘‘quali18 fied individual’’ means an individual who—

19 (A) as of the date of the enactment of this

20 Act, is eligible for benefits under the supple21 mental security income program under title

22 XVI of the Social Security Act on the basis of

23 an application filed before such date;

24 (B) before August 15, 1945, served in the

25 organized military forces of the Government of
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1 the Commonwealth of the Philippines while

2 such forces were in the service of the Armed

3 Forces of the United States pursuant to the

4 military order of the President dated July 26,

5 1941, including among such military forces or6 ganized guerrilla forces under commanders ap7 pointed, designated, or subsequently recognized

8 by the Commander in Chief, Southwest Pacific

9 Area, or other competent military authority in

10 the Army of the United States; and

11 (C) has not been removed from the United

12 States pursuant to section 237(a) of the Immi13 gration and Nationality Act.

14 (2) FEDERAL BENEFIT RATE.—The term ‘‘Fed15 eral benefit rate’’ means, with respect to a month,

16 the amount of the cash benefit (not including any

17 State supplementary payment which is paid by the

18 Commissioner of Social Security pursuant to an

19 agreement under section 1616(a) of the Social Secu20 rity Act or section 212(b) of Public Law 93–66)

21 payable for the month to an eligible individual with

22 no income.

23 (3) BENEFIT INCOME.—The term ‘‘benefit in24 come’’ means any recurring payment received by a

25 qualified individual as an annuity, pension, retire-
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1 ment, or disability benefit (including any veterans’

2 compensation or pension, workmen’s compensation

3 payment, old-age, survivors, or disability insurance

4 benefit, railroad retirement annuity or pension, and

5 unemployment insurance benefit), but only if a simi6 lar payment was received by the individual from the

7 same (or a related) source during the 12-month pe8 riod preceding the month in which the individual

9 changes his place of residence from the United

10 States to the Philippines.

11 (d) EFFECTIVE DATE.—This section shall be effec12 tive with respect to supplemental security income benefits

13 payable for months beginning after the date that is 1 year

14 after the date of the enactment of this Act, or such earlier

15 date that the Commissioner of Social Security determines

16 is administratively feasible.

17 TITLE III—CHILD SUPPORT

18 SEC. 301. ELIMINATION OF ENHANCED MATCHING FOR

19 LABORATORY COSTS FOR PATERNITY ESTAB20 LISHMENT.

21 (a) IN GENERAL.—Section 455(a)(1) of the Social

22 Security Act (42 U.S.C. 655(a)(1)) is amended by striking

23 subparagraph (C) and redesignating subparagraph (D) as

24 subparagraph (C).
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1 (b) EFFECTIVE DATE.—The amendment made by

2 this section shall be effective with respect to calendar

3 quarters beginning on or after October 1, 1999.

4 SEC. 302. ELIMINATION OF HOLD HARMLESS PROVISION

5 FOR STATE SHARE OF DISTRIBUTION OF COL6 LECTED CHILD SUPPORT.

7 (a) IN GENERAL.—Section 457 of the Social Security

8 Act (42 U.S.C. 657) is amended—

9 (1) in subsection (a), by striking ‘‘subsections

10 (e) and (f)’’ and inserting ‘‘subsections (d) and (e)’’;

11 (2) by striking subsection (d);

12 (3) in subsection (e), by striking the 2nd sen13 tence; and

14 (4) by redesignating subsections (e) and (f) as

15 subsections (d) and (e), respectively.

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

17 this section shall be effective with respect to calendar

18 quarters beginning on or after October 1, 1999.
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1 TITLE IV—TECHNICAL

2 CORRECTIONS

3 SEC. 401. TECHNICAL CORRECTIONS RELATING TO AMEND4 MENTS MADE BY THE PERSONAL RESPONSI5 BILITY AND WORK OPPORTUNITY REC6 ONCILIATION ACT OF 1996.

7 (a) Section 402(a)(1)(B)(iv) of the Social Security

8 Act (42 U.S.C. 602(a)(1)(B)(iv)) is amended by striking

9 ‘‘Act’’ and inserting ‘‘section’’.

10 (b) Section 409(a)(7)(B)(i)(II) of the Social Security

11 Act (42 U.S.C. 609(a)(7)(B)(i)(II)) is amended by strik12 ing ‘‘part’’ and inserting ‘‘section’’.

13 (c) Section 413(g)(1) of the Social Security Act (42

14 U.S.C. 613(g)(1)) is amended by striking ‘‘Act’’ and in15 serting ‘‘section’’.

16 (d) Section 413(i)(1) of the Social Security Act (42

17 U.S.C. 613(i)(1)) is amended by striking ‘‘part’’ and in18 serting ‘‘section’’.

19 (e) Section 416 of the Social Security Act (42 U.S.C.

20 616) is amended by striking ‘‘Opportunity Act’’ and in21 serting ‘‘Opportunity Reconciliation Act’’ each place such

22 term appears.

23 (f) Section 431(a)(6) of the Social Security Act (42

24 U.S.C. 629a(a)(6))) is amended—
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1 (1) by inserting ‘‘, as in effect before August

2 22, 1986’’ after ‘‘482(i)(5)’’; and

3 (2) by inserting ‘‘, as so in effect’’ after

4 ‘‘482(i)(7)(A)’’.

5 (g) Sections 452(a)(7) and 466(c)(2)(A)(i) of the So6 cial Security Act (42 U.S.C. 652(a)(7) and

7 666(c)(2)(A)(i)) are each amended by striking ‘‘Social Se8 curity’’ and inserting ‘‘social security’’.

9 (h) Section 454 of the Social Security Act (42 U.S.C.

10 654) is amended—

11 (1) by striking ‘‘, or’’ at the end of each of

12 paragraphs (6)(E)(i) and (19)(B)(i) and inserting ‘‘;

13 or’’;

14 (2) in paragraph (9), by striking the comma at

15 the end of each of subparagraphs (A), (B), (C) and

16 inserting a semicolon; and

17 (3) by striking ‘‘, and’’ at the end of each of

18 paragraphs (19)(A) and (24)(A) and inserting ‘‘;

19 and’’.

20 (i) Section 454(24)(B) of the Social Security Act (42

21 U.S.C. 654(24)(B)) is amended by striking ‘‘Opportunity

22 Act’’ and inserting ‘‘Opportunity Reconciliation Act’’.

23 (j) Section 344(b)(1)(A) of the Personal Responsi24 bility and Work Opportunity Reconciliation Act of 1996

25 (110 Stat. 2236) is amended to read as follows:
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1 ‘‘(A) in paragraph (1), by striking sub2 paragraph (B) and inserting the following:

3 ‘(B) equal to the percent specified in para4 graph (3) of the sums expended during such

5 quarter that are attributable to the planning,

6 design, development, installation or enhance7 ment of an automatic data processing and in8 formation retrieval system (including in such

9 sums the full cost of the hardware components

10 of such system); and’; and’’.

11 (k) Section 457(a)(2)(B)(i)(I) of the Social Security

12 Act (42 U.S.C. 657(a)(2)(B)(i)(I)) is amended by striking

13 ‘‘Act Reconciliation’’ and inserting ‘‘Reconciliation Act’’.

14 (l) Section 457 of the Social Security Act (42 U.S.C.

15 657) is amended by striking ‘‘Opportunity Act’’ each place

16 it appears and inserting ‘‘Opportunity Reconciliation

17 Act’’.

18 (m) Section 466(a)(7) of the Social Security Act (42

19 U.S.C. 666(a)(7)) is amended by striking ‘‘1681a(f))’’ and

20 inserting ‘‘1681a(f)))’’.

21 (n) Section 466(b)(6)(A) of the Social Security Act

22 (42 U.S.C. 666(b)(6)(A)) is amended by striking ‘‘state’’

23 and inserting ‘‘State’’.
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1 (o) Section 471(a)(8) of the Social Security Act (42

2 U.S.C. 671(a)(8)) is amended by striking ‘‘(including ac3 tivities under part F)’’.

4 (p) Section 1137(a)(3) of the Social Security Act (42

5 U.S.C. 1320b-7(a)(3)) is amended by striking

6 ‘‘453A(a)(2)(B)(iii))’’ and inserting

7 ‘‘453A(a)(2)(B)(ii)))’’.

8 (q) The amendments made by this section shall take

9 effect as if included in the enactment of the Personal Re10 sponsibility and Work Opportunity Reconciliation Act of

11 1996.

Æ